Press Release -Durham, NC – Self-Help’s credit unions today announced a pilot partnership with Multi-Bank Securities, Inc. (MBS) to underwrite and distribute DTC (Depository Trust Company)-eligible share certificates (also known as CDs). The new certificate of deposit (CD) will simplify access for investment managers to invest in Self-Help Credit Union and Self-Help Federal Credit Union’s mission-driven work by purchasing federally-insured fixed-income CDs.
Three investment firms that specialize and are leaders in socially responsible investing have all participated in Self-Help’s first DTC-eligible CD offering which settled on Tuesday, June 21, 2016. They are Walden Asset Management, Trillium Asset Management, and Fresh Pond Capital, a wholly-owned subsidiary of Reynders, McVeigh Capital Management.
“We are excited to join with MBS to offer a DTC-eligible product and extremely grateful to Walden, Trillium and Fresh Pond Capital for their investment commitment,” said Kristen Cox, Self-Help Credit Union Investment Associate. “We hope this DTC-eligible product will significantly increase the ease of investing in Self-Help’s work to support low- and moderate-income individuals, families and communities.”
Cheryl Smith, Managing Partner at Trillium Asset Management, LLC who was the first to commit to this offering said, “For more than 30 years, Trillium Asset Management has offered our investment clients a range of community investment options. Self-Help Credit Union has a decades-long commitment to providing community development finance, affordable credit and banking services for underserved communities. We support Self-Help Credit Union’s long-term efforts to support sustainable food systems and to create stronger neighborhoods, and we commend their effort to originate a DTC-eligible share certificate for distribution.”
“It is important to Walden’s clients to make a positive social impact through their investments,” said Carly Greenberg, an ESG Analyst at Walden Asset Management responsible for overseeing its community investing service. “We are pleased to offer our clients the opportunity to invest in CDs issued by Self-Help’s two credit unions, given the organization’s long-term commitment to lending to grow small businesses, finance environmentally sustainable projects, and provide affordable home loans to thousands of families in the U.S.”
Tim Peacock, Senior Vice President at Multi-Bank Securities, Inc. said, “When Self-Help Credit Union reached out to Ian Netupsky, an account executive with MBS, with the idea of issuing a ‘tradeable’ security that would allow money managers the opportunity to invest in their credit unions, he realized we were looking at something new and different. This is a unique opportunity in which we can help support a targeted distribution effort to attract mission- and values-based investments.”
“This new product creates a win-win for Self-Help and its mission-focused partners,” Peacock said. “It offers federally-insured CDs at terms approximately 0.25% below Self-Help’s current published rates, and delivers an efficient settlement process for both issuer and investor.”
A single Master Certificate (per offering) is held in safekeeping, and all ownership records are maintained (book-entry) with the DTC. A CUSIP number is assigned and enables an easily-managed start-to-finish process for both purchaser and issuer. The result is an instrument that is insured and supported with a secondary market, a combination that meets the needs of investment advisors who are looking for opportunities to combine social impact with liquidity. Through the purchase of 36- and 48-month CDs for the clients of these three firms, this initial offering raised $3.6 million for Self-Help.
“We are excited to be participating as a way to align our clients’ values of supporting groups working to alleviate poverty in critical geographic regions in our country, targeting underserved communities through an accessible and efficient investment offering,” said Maria Arabatzis, Portfolio Manager and Social Investments Coordinator at Fresh Pond Capital.
“What is most exciting to me is we will seamlessly be able to weave in Self-Help’s community impact for clients who are wholly-committed to socially responsible and community investing,” Cox said.
Self-Help will be limiting DTC CD nonmember deposits at $20 million.
