90 likes | 252 Views
North Carolina Affordable Housing Conference Community Development Investment and Intermediaries September 17, 2010. Presentation by: Michelle Rogers Senior Vice President / Portfolio Manager Community Capital Management, Inc. 2. About Community Capital Management.
E N D
North Carolina Affordable Housing Conference Community Development Investment and Intermediaries September 17, 2010 Presentation by: Michelle Rogers Senior Vice President / Portfolio Manager Community Capital Management, Inc.
2 About Community Capital Management • Founded in 1998, Community Capital Management (CCM) is an institutional fixed income manager and an SEC-registered investment adviser. • CCM currently manages $1.2 billion (as of 6/30/10) in community development investments. • All bond portfolios seek to produce above-average, risk-adjusted returns. • Available investment vehicles: • Mutual fund (CRA Qualified Investment Fund). • Separately managed account. • Clients include: Foundations, Religious Organizations, Public Funds, • Financial Institutions, Insurance Companies, and Individuals.
3 About The CRA Qualified Investment Fund • The Fund was launched in August, 1999 to help banks garner positive consideration on the investment test portion of the Community Reinvestment Act. • The Fund is an open-end, no load mutual fund that invests in high credit quality bonds that have community development as their primary purpose. • In 2007, the Fund added two new share classes in addition to the flagship bank share class (Ticker: CRAIX), one for retail investors (Ticker: CRATX) and another for institutional investors (Ticker: CRANX). • Since inception, • The Fund has grown to over 300 bank shareholders. • The Fund has invested over $3 billion in community development nationwide. • Qualified investments have been made in every state of the U.S., Puerto Rico and the U.S. Virgin Islands. • Out of over 600 CRA exams, every shareholder has earned positive consideration for their investment in the Fund*. • As of June 30, 2010, net assets in the Fund were $927 million. * CRA exams conducted by FDIC, OCC, OTS and FRB. These regulators have not approved or disapproved of the Fund.
4 Community Development Impact The Fund creates measurable community development impact in the forms of affordable housing, job creation, and community revitalization. The Fund has invested $3 Billion nationwide in measurable community development on behalf of its shareholders.* 6,900 Affordable Home Mortgages $98.4 Million in Job/Small Business Creation $143.8 Million in Economic/Environmental Development 155,400 Affordable Rental Housing Units $27.3 Million in Affordable Healthcare Facilities $327.3 Million in Statewide Homeownership Programs * As of June 30, 2010.
5 How the Fund Works: A Financial Perspective High Credit Quality The Fund seeks to provide a high level of current income and generate risk-adjusted market returns for shareholders. 30-Day SEC Yield (as of 8/31/10): 3.37% Risks and returns of the Fund are pooled, divided and diversified among all the shareholders. Due to rounding, only securities representing 0.1% of the Fund’s assets and greater are included. As of 6/30/10, excluded securities represent a total of 0.003% of the Fund’s assets. All included securities are rated by S&P, Moody’s, and/or Fitch. If a security is rated by more than one of these organizations, the lowest rating assigned is shown. Ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest). As of June 30, 2010, the average annual total returns of the CRA Qualified Investment Fund CRA Shares for 1-year, 5-year, 10-year and since inception (08/30/1999) are, respectively, 6.55%, 4.48%, 5.59% and 5.39%. The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please call 866-202-3573.
6 Fund Portfolio Composition as of 6/30/10 Affordable rental housing; environmental sustainability; community/neighborhood revitalization Affordable rental housing; environmental sustainability; community/neighborhood revitalization Small business loans Community/neighborhood revitalization; environmental sustainability; first-time homebuyer programs; affordable rental housing Targeted market rate home loans for low- and moderate-income borrowers
7 Sample Investment: Affordable Housing for the Disabled United Cerebral Palsy (UCP) Eastern Group Home #1* Raleigh, North Carolina • Financial • Sector: Multifamily Agency MBS • Coupon: 5.08% • Maturity: January 2030 • Credit Rating: AAA (Government Guaranteed) • Impact • Section 8-assisted group home. The group home provides private bedrooms for six individuals and common living with twenty-four hour staffing. • Each UCP North Carolina group home offers community living opportunities for persons with disabilities in a family-focused setting. • In 2004, Easter Seals North Carolina, Inc. and United Cerebral Palsy of North Carolina merged to become Easter Seals UCP North Carolina. Together, they have a 65-year history providing supports and services to people with disabilities and mental health challenges in North Carolina. In 2009, they expanded their reach to Virginia. * As of June 30, 2010, this represented 0.07% of the Fund’s assets.
8 Sample Investment: Healthy Mixed-Income Neighborhoods New Communities Initiative* Washington, D.C. • Financial • Sector: Taxable Municipal Bond • Coupon: 3.39% • Maturity: June 2014 • Credit Rating: A • Impact • The New Communities Initiative (“Initiative”) is a comprehensive partnership designed to improve the quality of life for families and individuals living in four neighborhoods in Washington, D.C.: Barry Farm, Lincoln Heights/Richardson Dwellings, Northwest One and Park Morton. • The Initiative provides resources so that the community, in partnership with public and private entities, can work to transform highly concentrated low-income neighborhoods into healthy mixed-income neighborhoods. • The Initiative’s key objectives include: expanding affordable housing; creating economic opportunities through better jobs, education, and training; rebuilding community anchors like schools and libraries; and engaging residents in the design of their community. * Purchased in August 2010. As of August 31, 2010, this represented 0.16% of the Fund’s assets.
9 Contact Information / Disclaimers • Contact Information: • Michelle Rogers • Senior Vice President/Portfolio Manager • mrogers@ccmfixedincome.com • 877.272.1977 • The CRA Qualified Investment Fund is distributed by SEI Investments Distribution Co. (SIDCO) which is not affiliated with Community Capital Management, Inc. • Investing involves risk including loss of principal. Bonds and bond funds will decrease in value as interest rates rise. Carefully consider the fund’s investment objectives, risks, charges, and expenses. This and other information can be found in the fund’s prospectus, which can be obtained by calling 866.202.3573. • Please read carefully before investing. Other classes of the fund are available by separate prospectus which have different expenses and intended investors. Current and future holdings subject to change. • For institutional use only – not for public distribution.