Impact Shares Launches the Affordable Housing MBS ETF (NYSE: OWNS)
CCM to act as Sub-Adviser of OWNS Which Aims to Reduce the Racial Wealth Gap by Supporting Affordable Housing Options for Minority and Low-Income Families
FT. LAUDERDALE, July 27, 2021: Impact Shares announces the launch of the Impact Shares Affordable Housing MBS ETF (NYSE: OWNS), an exchange-traded fund (ETF) that invests in agency mortgage-backed securities (MBS) backed by pools of mortgage loans made to minority families, low- and moderate-income (LMI) families, and/or families that live in persistent poverty areas. OWNS seeks to invest in the dignity of homeownership for these traditionally underserved communities.
Sub-advised by Community Capital Management (CCM), a pioneer in fixed income impact investing, OWNS is designed to support the preservation and growth of affordable homeownership by creating financing for LMI borrowers. OWNS offers investors a capital markets solution for bridging the racial wealth gap to help address the affordable housing crisis in the U.S. and looks to make a positive impact on the well-being of individuals, families, and communities. Affordable housing is a core component of community development under the Community Reinvestment Act (CRA) regulations, and OWNS looks to help banks receive CRA consideration by building wealth for working-class and minority families through investing with a focus on participating banks’ assessment areas.
“Homeownership is one of the primary tools for building wealth, and its benefits are far-reaching from enhancing childhood development and school performance to increasing spending and employment in local communities to mental and physical well-being,” says David Sand, chief impact strategist at CCM. “Affordable housing for LMI, minority, and Black borrowers has been a primary focus for CCM for over two decades. We’re excited to partner with Impact Shares to offer a unique investment opportunity using the flexible, transparent ETF wrapper.”
“The CRA is designed to encourage banks to help rebuild and revitalize communities,” said Dan Rollins, chairman and CEO of BancorpSouth. “We are excited to help seed this innovative financial solution that looks to address the nation’s ongoing need for affordable homeownership for LMI and minority borrowers.
Allianz Investment Management U.S. LLC Senior Vice President and Head of Investment Strategy Stephanie Thomes added: “We are proud to support an investment that aims to make a tangible, positive impact towards homeownership for all. OWNS has developed both a creative approach to try to bridge the racial wealth gap as well as a unique reporting methodology to ensure the intended borrowers are being reached. We look forward to working with Impact Shares and CCM as they provide structural support that can help people reach their financial goals.”
We are thrilled to have insurance companies like Allianz Life Insurance Company of North America, banks including BancorpSouth and Woodforest National Bank, and community foundations like the California Community Foundation, as catalytic seed investors,” said Alyssa Greenspan, president and COO of CCM. “OWNS enables all types of investors the opportunity to provide capital to help reduce the wealth gap through affordable homeownership
“Decades of economic inequality and discriminatory homeownership policies have created a prominent racial wealth gap,” notes Marvin Owens, chief engagement officer at Impact Shares. “The Black homeownership rate is approximately 45%, the lowest of all ethnic and racial groups in the nation.1 Providing affordable housing to minority Americans is a crucial step in helping to address the widening racial wealth gap and catalyzing economic growth in LMI communities.”
OWNS will invest in MBS issued by Fannie Mae, Freddie Mac, and Ginnie Mae. Over half of the loans in OWNS will be made to LMI borrowers. These include home loans in census tracts where more than 50% of the population is non-white and at least 40% of the population is living at or below the poverty line. One of the largest barriers to wealth creation for minorities and Black Americans is the lack of inherited wealth. Homeownership is critical in this regard. It is also in the nation’s best interest – it can bring stability to families, revitalize distressed communities, and have a positive impact on economic growth.
Investors can learn more about OWNS and the Impact Shares mission at https://impactetfs.org/owns-etf.
About Impact Shares
Impact Shares is an ETF issuer and investment manager that is creating a new and innovative platform for clients seeking maximum social impact with market returns. Impact Shares’ goal is to build a capital markets bridge between leading nonprofits, investors and corporate America to direct capital and social engagement on societal priorities. Impact Shares is a tax-exempt non-profit organization under Section 501(c)(3) of the Internal Revenue Code. For more information about Impact Shares visit impactetfs.org.
Statements in this communication may include forward-looking information and/or may be based on various assumptions. The forward-looking statements and other views or opinions expressed herein are made as of the date of this publication. Actual future results or occurrences may differ significantly from those anticipated and there is no guarantee that any particular outcome will come to pass. The statements made herein are subject to change at any time. Impact Shares disclaims any obligation to update or revise any statements or views expressed herein.
About Community Capital Management (CCM)
Community Capital Management, Inc. (CCM) is an investment adviser registered with the Securities and Exchange Commission. Headquartered in Fort Lauderdale with employees in Boston, Charlotte, the New York City area, and Southern California, CCM was founded in 1998 and manages over $3.5 billion in assets. The firm believes a fully integrated portfolio — one that includes environmental, social, and governance (ESG) factors — can deliver strong financial performance while simultaneously having positive long-term economic and sustainable impact. CCM’s strategies utilize an innovative approach to fixed income and equity investing by combining the positive outcomes of impact and ESG investing with rigorous financial analysis, an inherent focus on risk management, and transparent research. Within our fixed income portfolios, impact customization provides investors the opportunity to direct their capital to support specific geographies (also known as place-based impact investing), one or more of 18 impact themes, and impact initiatives. For more information, please visit: www.ccminvests.com.
Carefully consider the Fund’s investment objectives, risk factors, charges, and expenses before investing. This and additional information can be found in Impact Shares’ statutory and summary prospectus, which may be obtained by calling 844-448-3383, or by visiting https://impactetfs.org/. Read the prospectus carefully before investing.
Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.
Investing involves risk, including the possible loss of principal. Bonds and bond funds are subject to interest rate risk and will decline in value as interest rates rise. Mortgage-backed securities are subject to prepayment and extension risk and therefore react differently to changes in interest rates than other bonds. Small movements in interest rates may quickly and significantly reduce the value of certain mortgage-backed securities. This Fund is non-diversified. As an actively managed Fund, it does not seek to replicate a specified index.
The views expressed by seed investors may not be representative of all investors. There is no guarantee of future performance or success.
OWNS is distributed by SEI Investments Distribution Co., with is not affiliated with Impact Shares Corp., the Investment Adviser for the Fund, or Community Capital Management Inc., the subadvisor for the fund.
Gregory FCA for Impact Shares