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Investments: The Basics

Learn everything you need to know about the Investments object in Kadince

Summary

Kadince offers Community users the ability to track their investments with the Investments object. Your Investments dashboard can show you different investment types and the assessment areas you are serving. You also have the ability to input the book values over time so you can see a full log of how an investment has changed since being purchased.

In Kadince, Community Development Investments are separated into two buckets:

  • “Donations” or Charitable Contributions: tracked, managed, and/or reported in the Donations feature

  • “Investments” or Qualified Investments: investments where the FI can receive a return.

    • Tax Credit and Securities

      • Low Income Housing Tax Credits (LIHTCs)

      • New Markets Tax Credits (NMTC) CDFI Fund

      • Affordable Housing Revenue Bonds

      • Mortgage Backed Securities (MBS)

      • TIP: your treasury department is key to gathering the data

    • Community Development Entities

      • CDFls, Community Loan Funds

      • Community Development Corporation (CDCs)

      • Low Income or Community Development Credit Unions (LICU or CDCU)

      • Minority or Woman-Owned Financial Institutions

      • TIP: Also supports Donations, Services, Loans

General Flow of the Investments Object

Every investment has a maturity date. These dates can be extended.

Investments are either purchased or committed to:

  • Purchased Investments are when the investment is funded immediately, and the book value is updated quarterly or annually, depending on the organization’s process. If the investment has not yet been reported, the purchased amount is what is considered for eligibility, and any future exams will consider the current book value.

  • Committed to investments refers to a pledge by an investor to contribute a specified amount of capital to the fund. This commitment is not necessarily transferred all at once but rather over time as the fund manager identifies and makes investment opportunities.

Note: Kadince team members are not certified CRA consultants. Any examples provided are purely for demonstration purposes to showcase how to use specific fields or features in Kadince. It is still recommended to do your own research, come to your own conclusions, and consult the institution’s regulatory agency to ensure you are in CRA compliance.

The Investments Object Dashboard

The Investments object dashboard gives you an at-a-glance view of your investments, based on the date operator set in the top left. The totals in your dashboard are populated by their current CRA status, which you can control by using the cog wheel () icon in the top right. You can view your dashboard as Percent CRA Eligible, Amount CRA Eligible, and Reviewed.

The Investment object dashboard contains a row of sub-tabs that can filter your view of your investments. You can select between Investment Type, Assessment Areas, CRA Eligibility, and Goals.

Remember, the data you see on your dashboard is wholly dependent on what date operator you have chosen. If you want to view ALL of your investments, try creating a new investment report.

Get started with Reports with our Reports Guide.

How to Add an Investment Form

Before you can upload investment data, you first need to create an investment form.

  1. Click Settings in the side navigation

  2. Click Community in the top navigation

  3. Click Investments in the sub-navigation

  4. Scroll to Forms

  5. Click the plus (+) icon

  6. Fill out the fields for Title, Type, and Active

    1. If your form is Inactive, then it won't appear in the list of available forms when you want to add investment data

  7. When viewing your newly created investment form, make sure the Details sub-tab looks correct

  8. Configure your Views sub-tab

    1. These checkboxes control your form permissions, and whether users can add, search, or see certain elements on your form.

    2. There are separate checkboxes for internal and external forms

  9. Configure your Layout sub-tab

    1. Clicking the three-dot menu () icons will let you add and edit new fields

  10. Make sure to click the Save button in the top right

If you want more details on single or multi-page forms, or a deeper dive into form layout, head over to our Forms Guide for more help!

Investment Entries

Now that you've added your investment form, you're ready to actually add the investment data.

How to Add an Investment Entry

  1. Click Community in the side navigation

  2. Click Investments in the top navigation

  3. Click the Add New Investment () button in the top left corner

    1. You can also hover over this button from anywhere in the Community Module, and see a list of new objects to add, including Investments

  4. Click the investment form you wish to use

  5. Complete the form

  6. Click the Submit button

Congratulations! Now you have investment data in Kadince.

The Investment Entry Layout & Settings

Once you have investment data in Kadince as an investment entry, you can view the data that you filled out on the form in an Entry Detail View. Users will need certain Detail Views added to their roles if they want to view the investment entry.

How to Add a User to an Investment Entry Detail View

  1. First, create the Detail View in Settings > Community > Investments > Detail Views

    1. Here you can configure how your investment entry will look to users with the appropriate permissions

  2. Once a Detail View is created, assign users to that Detail View:

    1. Click Settings in the side navigation

    2. Click Accounts in the top navigation

    3. Click Roles in the sub-navigation

    4. Click the role title

    5. Click the Detail Views sub-tab

    6. Click the pencil () icon

    7. Select the Detail View from the Investment drop-down field

    8. Click the Submit button

Now that you or your users can see the entry, let's cover what you can interact with and edit on an investment entry.

This image shows the fullscreen view of an investment entry detail view. You can also view this in the side-drawer.

When editing your Detail View Layout, you can determine which sub-tabs are visible on the entry. You can edit settings within the Details, Location, Values, Impact, Tasks, Comments, and Goals sub-tabs.

Investment Details

  • Organization: The organization it’s associated with (if applicable)

  • Our Representative: The employee of your institution that is representing this investment

  • Naming an Categorization: Investment Title, Investment Type, Description, CUSIP Number

  • Maturity Date: When an investment matures, the remaining principal of the investment is repaid and is no longer on the books. Maturity dates can be extended.

  • Participation Investment: Are there any participation metrics that need to be tracked? If so, who is the Lead Lender and what is your participation amount vs. what is the Total Amount?

  • Attachments: Add any files with the paper clip () button

  • Physical Location: Use the address that best reflects the impact story. If no one address reflects the desired information, use the CRA Details > CRA Qualifying Rationale text field coupled with Assessment Area Allocations to communicate how/what areas were impacted

How to Edit an Investment Entry

There are a few different ways to locate your investment entry:

  • If you know the Kadince ID number, you can use the Global Search magnifying glass () icon to find the entry quickly.

  • You can click one of the figures on your investment dashboard and be taken to a canned report; just click on the open-side drawer icon to view the entry detail view (the results are dependent on the date operator in the top left).

  • If you want a list of all your investment entries, you'll need to generate an investment report with Reports in the side navigation.

Once you have an entry open, you can navigate between the sub-tabs (e.g., Details, Values, Tasks, etc.), and click the pencil () icons on those pages to make various edits.

How to Delete an Investment Entry

  1. Open an Investment entry

  2. Click the three-dot menu () button in the top right

  3. Select Delete

  4. (Optional) When viewing an Investment report, click the checkbox(es) of the Investment entry(ies) you wish to delete, then click the drop-down arrow () icon in the column header. Select Delete from the System

Deleted investment entries can be restored from the Recycle Bin by a Company Admin for up to 90 days.

Investment Values in Kadince

  • Purchase Value/Date: Was it purchased all at once? If so, when?

  • Committed Value/Date: Was a total amount committed to pay over a period of time? If so, for how much and when? (the initial commitment, not the latest funded amount).

  • Sold Value/Date: Was this investment sold to another institution prior to its maturity? If so, for how much and when?

Book Values

“…CRA is all about what have you done for me lately.” - Kadince Customer (30-year CRA Officer FED)

Part of investment management in Kadince is periodically reviewing the investment details and adding Book Values.

If the investment is funded immediately, the book value may need to be updated quarterly or annually, depending on your organization’s process. If the investment has not yet been reported, the purchased amount may be what is considered for eligibility, and any future exams will consider the current book value.

After the investment purchased value or the committed value has been defined, the ongoing value of the investment is tracked in the Book Values section. This is generally done quarterly or annually but can be done as often as the value changes.

The “Current Book Value” displays the book value entry with the most recent As of Date, not the most recent book value entry added (you can backdate values if needed). When submitting a new investment, the purchased value/date will create the first book value automatically mirroring the value and date of the purchase value and date provided.

Steps to Update the Investment Value Option

When you need to update the Investment Value Option for a specific investment, follow these guidelines:

  1. Open the investment record you want to modify

  2. Within the record, find and select the Impact tab

  3. Navigate to the Investment Value Option settings and make the required changes.

  4. Save the updated details

Impact

The Impact section contains important information, such as Beneficiaries, LMI Percentage, Housing Unit Totals, Unit LMI, Job Creation/Retention, Jobs LMI, Development Activities, Qualitative Factors, Designated Disaster Areas, Impact Areas, Impact Focus, and Impact Tags.

Steps to Update Loan Renewal Amounts

If you need to adjust a loan renewal amount in the Impact tab, follow these steps:

  1. Navigate to the specific loan you wish to edit

  2. Locate the Impact tab within the loan record

  3. Use the edit option (such as a pencil () icon) associated with the original amount

  4. Enter the updated renewal amount and save the changes

How to Change the Value Option of the Allocation of an Investment

This feature is designed to offer flexibility, allowing you to customize how each investment is tracked and reported. For instance, some investments may be better represented by their current book value, while others might align more closely with their committed or purchase values.

Note: During the update process, you may be prompted to choose whether to retain the amount or percentage for eligible field values, with the percentage being the default. This ensures flexibility in aligning with your reporting needs.

  1. Open an investment entry detail view

    1. Via an Investment Report

    2. Via Community > Investments > Investment Entry

  2. Click the Impact sub-tab

  3. Click the pencil () icon in the CRA Details section

  4. Click the pencil () icon next to Purchase Value

  5. Click the Investment Value Option field

  6. Choose a value option

  7. Click the Submit button

  8. Click the Submit button in the CRA Details window

Benefits of customizing the Investment Value Option:

  • Accurate Reporting: Tailor value tracking to ensure precise data in your reports.

  • Flexibility: Adjust individual investment settings to match specific reporting or regulatory requirements.

  • Goal Alignment: Use the appropriate value to better track goals and objectives.

How to Change the Value Option Using the Update Data Tool

  1. Create an investment report that includes the investments you need to update. The report should also include the following fields:

    • Investment ID: Kadince system field, will be used as the ID field during the update

    • Value Option: Kadince system field will be used as the column to match for updates

  2. Download that report as a CSV or Excel file by clicking the three-dot options menu and selecting a download option

  3. Update the cell in the Value Option column to reflect which value you want to use as the Investment Value Option

    • Note: these values must match exactly what is in your Kadince instance. The default value option field title are Purchase Value | Current Book Value | Committed Value | Sold Value, but may differ if field names have been changed in your instance. Validate these before updating to avoid failures.

  4. Save the updated file as a CSV file

How to Update the Value Option Using the Update Data Tool

  1. Click Settings in the side navigation

  2. Click Data in the top navigation

  3. Click Update the sub-navigation

  4. Click New Update

  5. Select Investment Details in the Object field

  6. Make the remaining required selections

  7. Select the updated .CSV file to upload

  8. Click Submit

  9. Select the Investment ID as the ID field

  10. Confirm mapping of all remaining fields

  11. Click Preview

  12. Verify everything looks good

  13. Click Continue

  14. Click Update

  15. Track Progress

Verify

Return to the original report pulled during prep and verify that the update was successful and the Value Option reflects the desired field for those Investments.

CRA Details

The CRA eligibility and/or funded amount(s) can be allocated to specific assessment areas.

The first assessment area is automatically assigned based on the physical address or tract details given. It cannot be assigned/re-assigned manually.

If the investment is split between multiple assessment areas, click the plus (+) icon in the CRA Allocations section to add another row. The assessment area is manually picked from the dropdown, so be sure to select the correct assessment area from the correct year. Add as many splits as needed.

If the automatically assigned assessment area is not the desired area (or it didn’t find a match and is labeled Outside Assessment Area), add a new assessment area allocation row to manually identify the desired assessment area/amount eligible, and then allocate 0% to the first assessment area allocation row.

The assessment area allocations total is calculated from one of the investment values: Purchased Value, Committed Value, Sold Value, or the Current Book Value.

The value option can be changed per investment to better reflect what amount is suspected as CRA eligible.

Determine CRA Eligibility

The value operator in the CRA Details window allows users to toggle the amount field that is being evaluated as CRA eligible to “Purchase Amount,” and post-exam exam it can update it to “Current Book Value” without needing to clean up any data since they’ve been updating the current book value quarterly or annually.

If the investment is impacting more than one (1) Assessment Area, the amount eligible can be split to allocate to as many Assessment Areas as needed

Investment Reporting & Widgets

You can build custom reports using filters, grouping, and robust parameters to see your data in new ways. Visualize your reports and data in your custom dashboard by creating widgets.

Widgets can also be embedded into your website or shared via a link. Every login user has their own custom widgets page, ensuring you see what’s important to you.

During exam time, you have the ability to give auditors view-only access to the reports you choose. This gives them access to see all marketing collateral in one place!

FAQ

Why can't I see the new investments entered by another analyst and how can I check if the investments are on the report?

The visibility of investments on your dashboard can be impacted by the date fields being filled in and which date field operator you have selected for your dashboard to display. For example, if you have the maturity date blank on an entry, but that is your selected date operator for your dashboard, it would not show on the dashboard because there would be no date to match the filter.

To check if the investments are on the report, you can look at the all investments report to see if the investments are listed there. If there are supposed to be more than what is there, then further investigation may be needed.

Visibility can also be impacted by your assigned user role and the object-specific permissions within that role. Non-admin users will need permission to "view [object] submitted by any user" in order to see entries they did not submit or those not assigned directly to them.

Related Resources

Loans: The Basics

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