January 2020

FundFire: Tiedemann Adds Cash Impact Investing Solution to Menu

FundFire : Tiedemann Adds Cash Impact Investing Solution to Menu | By Kathleen Laverty | January 16, 2020

Independent wealth manager Tiedemann Advisors has introduced a new impact investing program that allows clients to put their money to work in improving local communities, Barron’s reports.

Tiedemann’s Federally Insured Cash Account (FICA) program aligns its clients’ core values with those of the banks with which they deal, says Brad Harrison, a managing director at the $19 billion firm.

FICA Impact allows Tiedemann clients to invest in more than 700 community banks, which will then lend to local reinvestment programs tasked with creating jobs, building infrastructure and schools, and expanding social programs, the New York-based firm announced yesterday.

Americans traditionally bank at large financial institutions, “which don’t necessarily have socially responsible lending criteria that align to core values of our clients,” says Harrison.

Harrison credits “the real advancement of financial technology” with enabling Tiedemann to spread client cash across such a large network of community banks and “unlock impact opportunities in communities nationwide.”

Harrison adds that FICA Impact’s yields and liquidity are similar to those offered by money market accounts at large financial institutions, Barron’s reports.

Tiedemann has already worked with the Russell Family Foundation on developing an “impact investing cash solution.” The foundation, created in 1999 to support sustainable community groups, has generally stashed its cash for grant-making and investing with big banks. But the foundation has “overlooked” cash as an asset class that can be used to “put impact investments to work,” says its CFO and interim CEO, Kathleen Simpson. “Cash has always been a smaller allocation for us," she says.

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