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Q&A with CCM: Will Tax Reform Effect Impact Investment Trends?

Mar 27, 2018 - Impact Investing by CCM Invests

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During our Annual Impact Report Webinar on March 7, CCM’s Chief Impact Strategist, David Sand and Director of CRA & Impact Research, Jessica Botelho, discussed what makes the firm tick. The discussion included impact stories, case studies, and trends in impact investing.

Below we highlight a question asked during the Q&A portion of the webinar. 

Q: Have you noticed any changes in the market in the last year related to tax & healthcare reform or other policies that have shifted interest in impact investing in your target geographies?

A: There are two answers to that question. First, on the supply side, we closely followed the regulatory and legislative changes that went through Congress in 2017. We don’t directly invest in government programs, but Congressional actions inform and support areas like Community Economic Development and Affordable Housing.  Many programs or elements of programs were on the chopping block, if you will.  A lot of them survived.  For example, the low-income housing tax credit and new markets tax credits were at one point going to be eliminated.  They all stayed as the law of the land, at least for now.  What happens in the future, we have no crystal ball on that.  But entering 2018, the availability of supply of the type of investment instruments that we've been talking about on this call continues.  And the need for investment with an economic, social and impact point of view in those areas is much greater.

On the demand side, in terms of new clients coming to us, we have experienced an uptick in investors who want to “do right” with their portfolios.  They want to do something that supports their values. We are a private sector initiative.  People want to invest in development, or believe in climate change or other themes that we’ve been talking about. They want to do something about it and may have in the past thought about becoming impact investors.  We've seen investors begin a program or continue a program of investing with their values. Here at Community Capital Management, we feel like last year, 2017, was the year that Impact Investing really broke through in the consciousness of mainstream investors.  

To watch or listen to the entire webinar that took place on March 7
or to download our 2017 Annual Impact Report, click here

Webinar Replay

 

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 A full list of regulatory disclosures for Community Capital Management, Inc. are available by visiting: https://www.ccminvests.com/regulatory-disclosures/.