Fund Complex: RBC Funds
Management Company: (1) (4) RBC Global Asset Management (U.S.) Inc., (2) sub-advisor-BlueBay Asset Management LLP and BlueBay Asset Management USA LLC, (3) RBC Global Asset Management (UK) limited.
Funds Affected: (1) Access Capital Community Investment Fund, (2) RBC BlueBay High Yield Bond Fund, (3) RBC Emerging Markets Small Cap Fund, (4) RBC Impact Bond Fund
Sustainable Investing Strategy: (1) Thematic: Social Considerations, (2-3) ESG Integration, (4) Thematic Investing
Summary:
(1) The fund invests in high quality debt securities and other debt instruments supporting affordable housing and community development and servicing low-and moderate-income individuals and communities in areas of the United States designated by the fund’s shareholders. The fund expects that substantially all or most of its investments will be considered eligible for regulatory credit under the Community Reinvestment Act of 1977 (CRA) and that shares of the fund will be eligible for regulatory credit under the CRA. The fund intends to invest solely in qualified investments in in areas of the United States designated by Fund shareholders.
The fund invests a significant amount of its assets in securities issued by Government National Mortgage Association (Ginnie Mae) and government sponsored enterprises (GSEs), such as the Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac), Federal Housing Administration (FHA) project loans, and tax-exempt debt issued by state housing finance authorities (HFAs) to finance their work in affordable housing.
(2-3) The sub-advisor takes environmental, social and governance (ESG) factors into account in making investment decisions.
(4) The Advisor will select investments that seek to generate returns while simultaneously achieving positive aggregate societal impact outcomes. The Advisor uses its impact methodology to measure the fund’s investments on the basis of qualities that promote affordable quality shelter, small business growth, health and well-being, environmental sustainability, quality education, community development, diversity, reduced inequalities, and neighborhood revitalization.
The Advisor will select investments that seek to generate returns while simultaneously achieving positive aggregate societal impact outcomes. The Advisor uses its impact methodology to measure the Fund’s investments on the basis of qualities that promote the following:
- Affordable Quality Shelter: Promote access for all to adequate, safe, and affordable housing.
- Small Business Growth: Support the growth of small businesses and decent job creation, including increasing access to financial services for entrepreneurs.
- Health and Well-being: Improve access to quality essential health-care services and access to safe and affordable medicines, especially in underserved communities.
- Environmental Sustainability: Promote resource and energy efficiency, sustainable consumption and production, and a reduction of environmental degradation and pollution.
- Quality Education: Expand access to equitable, quality, and affordable education for all people.
- Community Development: Invest in infrastructure in both urban and rural areas in ways that help empower communities and foster sustainable economic development.
- Diversity: Promote the social, economic and political inclusion of all, regardless of age, sex, disability, race, ethnicity, origin, religion or economic or other status.
- Reduced Inequalities: Support equal access to economic resources and growth for all people.
- Neighborhood Revitalization: Practice stewardship in revitalizing neighborhoods and communities.
The Fund’s methodology uses a systematic process that relies on fundamental and quantitative research from a variety of sources to select and weight investments. Securities are selected and weightings are allocated based on the qualities noted above, as determined by the Advisor, in conjunction with forecasts of return, risk and transaction costs. The qualities that the Advisor considers may change at any time and one or more societal impact outcomes may not be relevant to all companies that are eligible for investment. The Fund does not intend to use the methodology for all instruments in which it may invest and the model may evolve over time.
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