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I am thrilled to announce the launch of Cadence’s $50 million Racial Equity Fund, a keystone investment managed by RBC Global Asset Management. This groundbreaking initiative represents a major step forward in our ongoing commitment to promoting social justice.
Racial inequality is endemic to our society, and the time for action is now in the shadow of the largest generational wealth transfer in history, driven primarily by inequities in home and business ownership, ones that disadvantage people of color by a factor of 20X.
The National Association of Realtors reported that in 2021, nearly 73% of white individuals owned homes, while the same was true for just 51% of Latinx individuals and 44% of Black individuals. This illustrates the sheer scale of the racial wealth gap, especially given that home ownership is one of the principal ways in which generational wealth is transferred.
And that gap continues to grow. The National Association of Realtors also reported that while the homeownership rate for white individuals rose by about 3% between 2011 and 2021, the Black homeownership rate increased by just 0.4%.
Racial inequality extends to business ownership as well. A recent Pew Research Center article that examined Black-owned businesses, and cited data from the 2020 U.S. Census, revealed that Black individuals accounted for ownership of just 3% of all U.S. firms.
As leaders, it is our responsibility to use our resources and influence to drive positive change. In the spirit of Black History Month, we’re taking a proactive approach to addressing the wealth gap with a purpose-driven investment designed to address racial inequities in home ownership, affordable housing, and small business. By partnering with RBC Global Asset Management, we are leveraging world-class expertise in responsible investing and their long-standing commitment to advancing social justice.
We recognize that this is just the first step in a much longer journey towards social solidarity and global citizenship—one that will champion underserved groups both here in the U.S. and worldwide, including women, Latinx, Blacks, and other people of color with a focus on achieving social, racial and climate justice. We will continue to explore opportunities to use our platform and resources to drive meaningful change and create a more just and equitable society.
We know that we are not alone in this belief, and we encourage other leaders to join us in making investments that promote racial equity and social justice. We encourage other leaders to consider how they can use their resources and influence to support these important efforts, whether through donations, partnerships, or other means.
We have to do better as a society. Only together can we amplify our impact, break down barriers and create a brighter future for all.
To learn more, please read our news release, “Cadence to Invest $50 Million to Support Racial Equity.”