BSW Wealth Partners is proud to announce the launch of our IMPACT Tax Exempt Bond Portfolios. In development throughout 2009, BSW’s Tax Exempt IMPACT Bond Portfolios enable clients to invest in high-quality, individually-laddered bonds that yield tax-exempt income, while also supporting environmental, social, and community-development projects.
Why Bonds for IMPACT Investing?
High-quality, individually-laddered bonds are a critical component of BSW’s diversified portfolios due to their principal protection, steady income production, liquidity, and low volatility. These same characteristics also make bonds outstanding IMPACT investment vehicles. Through extensive research and nationwide screening, BSW and its fixed income partners identify and select bonds that maximize risk-adjusted returns and provide financing for state or municipal projects in a variety of IMPACT areas, such as green-collar jobs; housing assistance to seniors, the disabled, and first responders; environmental restoration; sustainable agriculture; and clean energy.
Representative Investments: Clean Energy, Urban Renewal, Housing Assistance
Tuolumme Wind Project: Located in Kickitat County, Washington, the Tuolumme Wind Project consists of 62 wind turbines that generate more than 137 megawatts of electricity, enough to power approximately 44,000 homes a year. The project, which carries an A+ rating and is supported by the Federal Build America Bond program, was funded by a $425 million bond issuance in which BSW invested in July 2009.
Boulder County Climate Smart Loan Program: Authorized in November 2008, the Climate Smart Loan Program enabled Boulder County to finance loans to county property owners for energy-efficiency improvements, such as solar power installations or insulation upgrades. The program is funded by a staged $40 million bond issuance that carries Boulder County’s A+ rating. After working with county officials and program underwriters, BSW purchased program bonds in May 2009 during their initial public offering.
Florida Urban Infill HERO Bonds: Issued by Florida’s Housing Finance Corporation, these bonds provided approximately $180 million of funding for below-market rate mortgage loans to low and middle income first-time home buyers, particularly the disabled, police officers, firefighters, veterans, and teachers, in urban-infill and economically-distressed areas. The bonds, which BSW purchased in September 2008, are rated AA+ and are also supported by the Federal Housing Administration (HUD), the Veterans Affairs Mortgage Guarantee program, GinnieMae, and FannieMae.
About BSW IMPACT Investing
BSW Wealth Partners’ IMPACT portfolios are custom, institutional-class investment portfolios that help create a better world. We approach IMPACT investing with the same rigor, due diligence standards, and return expectations as our traditional portfolios, and we utilize managers that apply their deep expertise to IMPACT opportunities. The discipline that comes from experience and real world know-how is what will ultimately make sustainability efforts “sustainable”and bring success to investors who want their capital to do more than just grow –but also to create positive IMPACT.
-David Wolf, Chief Investment Officer