Impact investors helped Stacey and Luna find low-cost housing

Luna and mum Stacey found a place to live through Argyle Housing, which is partly funded by Pendal and Regnan investors. Pic: Argyle Housing

THE first years of little Luna’s life were spent “surfing” from one relative’s home to the next with mum Stacey.

“I haven’t had a home to call my own,” said single parent Stacey. “It was never easy, and I always felt like I wasn’t where I needed to be.

“Since falling pregnant and having to leave work early due to the pregnancy being at high risk, I returned home to Wagga, to raise my baby.

“Being a single parent is hard. Basically, surfing from house to house made things even harder.

“The pressure and the cost of living made me feel like it was impossible. So, when the opportunity was given to me to live in such a wonderful home at cost that I could actually manage I was over the moon.”

That opportunity came from Argyle Housing, a top Australian Tier 1 Community Housing Provider which develops affordable housing with help from investors in Regnan’s Credit Impact Trust and Pendal’s Sustainable Australian Fixed Interest Fund.

Community Housing Providers such as Argyle Housing develop and lease affordable housing to Australians on low incomes.

“Hearing the positive outcomes of housing young mums, makes me really proud of the work we have done in creating new affordable housing in Wagga Wagga with the support of NHFIC funding,” says Wendy Middleton, CEO of Argyle Housing.

Social bonds help Aussie on low incomes

Argyle Housing’s funding comes partly from the federal government’s National Housing Finance and Investment Corporation (NHFIC), which raises money by issuing bonds to investors such as Pendal and Regnan.

Regnan is a global fund manager offering “impact investment” strategies that aim for strong returns while also making a positive impact in the community. Regnan is part of ASX-listed investment manager Pendal Group.

Regnan’s Credit Impact Trust and Pendal’s Sustainable Australian Fixed Interest Fund invest in a range of green and social bonds including those issued by NHFIC.

NHFIC lends out the money raised (more than $2 billion so far) to housing providers at lower interest rates and on better terms than banks — while providing attractive returns to investors.

“NHFIC is very important for financing, because it’s possibly as low a cost for borrowing you could ever achieve — and it’s performed very well,” says Wendy Hayhurst, chief executive of the Community Housing Industry Association.

“It’s performed very well because it’s got a government guarantee.”

Social bonds in demand

Demand for NHFIC bonds looks set to grow because Australia will need up to a million community housing homes by 2036, Ms Hayhurst says.

As house prices rise across the country many more Australians like Stacey and Luna will need a hand.

“I’m ever so grateful for the opportunity,” says Stacey.

“I’m a single mum of a beautiful two-year-old girl, Luna. I’ve been given the opportunity to reside in one of the Argyle Housing affordable units in [Wagga Wagga suburb] Kooringal.

“To have such a beautiful place to call home I feel truly blessed.

“It really has felt that since moving in, my life with my daughter has truly begun. I want to say thank you to Argyle Housing for giving me the ability to turn my life around and to make a home for my daughter.

“Luna and I are extremely grateful.”

Regnan and Pendal thank Argyle Housing for their co-operation in producing this article. Argyle Housing’s vision is to deliver quality housing options and connections to the community. Find out more about Argyle Housing here.

About Regnan

Regnan is a responsible investment leader with a long and proud history of providing insight and advice to investors with an interest in long-term, broad-based or values-aligned performance.

Building on that expertise, in 2019 Regnan expanded into responsible investment funds management, backed by the considerable resources of Pendal Group.

For more information about Regnan Credit Impact Trust, please contact Head of Regnan and Responsible Investment Distribution Jeremy Dean at jeremy.dean@regnan.com or Regnan Chief Operating Officer Lisa Boyce at lisa.boyce@regnan.com.

About Pendal

Pendal is an independent, global investment management business focused on delivering superior returns for our clients through active management.

Pendal’s Bond, Income and Defensive Strategies team is one of the most experienced and well-regarded in Australia, managing some $22 billion invested across income, composite, pure alpha, global and Australian government strategies.

Find out more about Pendal’s fixed interest strategies including Pendal Sustainable Australian Fixed Interest Fund.

Contact a Pendal key account manager.

This document has been prepared by Pendal Institutional Limited (Pendal) ABN 17 126 390 627, AFSL No 316455 and the information contained within is current as at 27 November 2020. This document is for general information purposes only, should not be considered as a comprehensive statement on any matter and should not be relied upon as such. It has been prepared without taking into account any recipient’s personal objectives, financial situation or needs. Because of this, recipients should, before acting on this information, consider its appropriateness having regard to their individual objectives, financial situation and needs.

This information is not to be regarded as a securities recommendation. The information in this document may contain material provided by third parties, is given in good faith and has been derived from sources believed to be accurate as at its issue date. While such material is published with necessary permission, and while all reasonable care has been taken to ensure that the information in this document is complete and correct, to the maximum extent permitted by law neither Pendal nor any company in the Pendal Group accepts any responsibility or liability for the accuracy or completeness of this information.

Pendal is the responsible entity and issuer of units in the Regnan Credit Impact Trust ARSN: 638 304 220 (the Fund). An Information Memorandum is available for the Fund (IM) and can be obtained by calling 1800 813 886 or visiting www.pendalgroup.com. You should obtain and consider the IM before deciding whether to acquire, continue to hold or dispose of units in the Fund. An investment in the Fund is subject to investment risk, including possible delays in repayment of withdrawal proceeds and loss of income and principal invested. Past performance is not a reliable indicator of future performance.

PFSL is the responsible entity and issuer of units in the Pendal Sustainable Australian Fixed Interest Fund (Fund) ARSN: 612 664 730. A product disclosure statement (PDS) is available for the Fund and can be obtained by calling 1300 346 821 or visiting www.pendalgroup.com. You should obtain and consider the PDS before deciding whether to acquire, continue to hold or dispose of units in the Fund. An investment in the Fund is subject to investment risk, including possible delays in repayment of withdrawal proceeds and loss of income and principal invested.

This article is for general information purposes only, should not be considered as a comprehensive statement on any matter and should not be relied upon as such. It has been prepared without taking into account any recipient’s personal objectives, financial situation or needs. Because of this, recipients should, before acting on this information, consider its appropriateness having regard to their individual objectives, financial situation and needs. This information is not to be regarded as a securities recommendation.