Pennsylvania Treasurer Timothy Reese on Nov. 1 announced the launch of a $100 million initiative that he said would provide a competitive rate of return while supporting state investments in affordable housing, small business, health and educational facilities, and infrastructure projects.
Treasury will invest the funds through RBC Global Asset Management's access capital community investment strategy which he said will design a portfolio of securitized, fixed-income investments in Pennsylvania projects.
Since 1998, the RBC has worked with governments and institutional investors to invest in customized U.S. agency guaranteed mortgage-backed securities and government-backed loans and municipal securities that support affordable rental housing, small businesses, healthcare, education and job creation targeted to low- and moderate-income residents and communities.
As of Sept. 30, the program had more than $910 million in assets under management. Investment performance for Treasury's funds will be measured against the Barclays Capital Aggregate Index.
The commonwealth could use the funds to invest in affordable housing by purchasing multi-family rental and mortgage loans originated by the Pennsylvania Housing Finance Agency. Such an investment, said Reese, would provide a sustainable low-cost source of financing to support the development of affordable multi-family properties.