These investments usually take the form of loans or bank and credit union deposits and can be either at or below market rates. In this area, mission and investing has been explicitly linked for many years. Because of their direct impact, community investments are an important part of many social investors' portfolios. Community investments vary widely in, scope and risk.
Some bank deposits are at market rates, as are some housing investments.
Others are not. Loans to revolving loan funds are usually at below-market rates, but those made to NCCA members historically have had very low default rates. In the context of the institution's mission, accepting a below-market rate of return on a portion of the portfolio may be justified. Inc. All Rights Reserved.