Northwestern Mutual is trying to add some real diversification to its investment portfolio — by investing in its own neighbors.
The Milwaukee-based mutual life insurer is allocating $5 million of its assets to two Milwaukee-based community development financial institutions: Legacy Redevelopment Corp. and Northwest Side Community Development Corp.
Both of the financial institutions are led by people who are Black, and Northwestern Mutual said its decision to invest in the institutions is partly the result of the company's $100 million Sustained Action for Racial Equity task force.
The investment is also a way for Northwestern Mutual to go beyond adding to the allocations of corporate bonds and suburban housing developments that tend to dominate life insurers' investment portfolios.
The two community development financial institutions finance a wide range of small businesses and nonprofits in Milwaukee, according to Northwestern Mutual.
