But CDFIs portfolios have outperformed many other portfolios held by big banks, Pinsky asserts. “If the recession proved one thing it’s we can manage in tough times.”
Custodians have generally been reluctant to hold CDFIs in client accounts because much of their bookkeeping is still performed manually. Last summer, Charles Schwab, Trillium’s largest custodian, agreed to book, hold and record them as assets after years of discussions with Trillium.
“That’s a real breakthrough,” says Rice, who expects it will help make community investments more accessible.