Community Capital Management (CCM) has secured the fixed income fund and North American impact initiative of the year awards for its flagship Community Impact Bond (CIB) fund, including an innovative initiative targeting first-time homebuyers.

Launched in 1999, the $3.6 billion CIB fund provides the option for personalised impact reports for clients to provide the opportunity to align their capital to specific impact values and objectives.

The customisable approach allows investors to view the impact of their investment across 14 themes including affordable healthcare and housing, disaster recovery, resilience and remediation, poverty alleviation, and rural community development. Investors also have the option of using the impact data to support specific geographies – known as place-based impact investing – such as difficult development, high minority, and high or persistent poverty areas.

The CIB fund invests in bonds where there is a "high degree of confidence" that their use of proceeds supports key impact themes identified by CCM.

CCM identified impacts from investments made by the fund in 2023 as including more than 2,300 loans to low- and moderate-income (LMI) borrowers, more than 95,000 affordable rental housing units supported, $449 million invested in majority-minority areas (see Figure).

CCM fixed income investment impact in 2023

"Twenty-five years ago, we committed to investing in the technology and infrastructure needed to provide customisation within a mutual fund," CCM co-chief impact strategist David Sand told Environmental Finance. "Clients often share how much they value this unique feature, which allows them to align their investments with their specific goals and priorities."

In particular, CCM – which manages more than $6 billion in assets – was awarded the North American impact initiative of the year award for its 'First-Time Homebuyer Initiative' launched in February 2024 amid what it called the "relentless" rise in house prices which is making homeownership "unachievable" for many.

The initiative allows investors in the CIB fund to specifically target bonds financing mortgage loans to LMI individuals and workforce first-time homebuyers as well as programmes helping first-time homebuyers assistance with down-payments and other housing-related costs.

By the end of September 2024, CCM told Environmental Finance that $333 million had already been invested through this initiative which had helped to finance hundreds of loans to first-time homebuyers.

"Homeownership promotes wealth creation by acting as a natural savings mechanism through home value appreciation," Sand said. "It also connects families to their communities and can result in better education, employment, and health outcomes.

"Supporting individuals and families on their journey to becoming first-time homebuyers is a mission we strongly believe in, and we are dedicated to advancing this objective through fixed income impact investments in every way possible," he added.