There are $25 trillion in retirement assets in the U.S.
Getting even a tiny slice of those investment dollars could mean a huge deal for affordable housing and equitable economic development in cities.
Last week’s revising of a seven-year-old Department of Labor guideline on retirement asset management is a huge step toward making that happen.
“This change could lead to the creation of new investment vehicles that target distressed urban areas,” says Matthew Patsky, CEO of Trillium Asset Management.
“CDFIs, which have a need for long-term capital, could be helped by the creation of pooled vehicles designed to serve the retirement asset marketplace that is, by its nature, very long-term,” he continued.
Trillium Asset Management has a long history of incorporating environmental, social and governance factors into its management of $2.2 billion in assets.
“This decision broadens impact investing to where people who are unaccredited investors, who are working class, can now look at whether there are options in their 401(k) plan or IRA that are providing them values alignment,” Patsky explains.