CCM’s Impact Bond Fund Celebrates its 20th Anniversary
The CRA Qualified Investment Fund, one of America’s largest market-rate, impact/ESG investing bond funds turns 20 years old in August 2019. Community Capital Management, Inc. (CCM) launched its flagship CRA Qualified Investment Fund CRA Shares (ticker: CRAIX) in August of 1999 for financial institutions looking to meet community development investing under the requirements of the Community Reinvestment Act (CRA) by directing the impact of their investments to specific communities in need around the United States. Since the Fund’s beginnings focused on place-based community investments primarily utilized by financial institutions, it has evolved to include 18 impact themes and diversified its client base through the launch of an Institutional Shares (ticker: CRANX) for religious organizations, non-profits, foundations, and high net worth investors along with a Retail Shares (ticker: CRATX) for individual investors.
To date, CCM, on behalf of the Fund and its separate accounts, has invested close to $10 billion in community development initiatives nationwide, in accordance with the geographies or impact themes requested of its clients, with the following powerful impact:
• $4.2 billion in financing 405,000 affordable rental housing units
• $3.5 billion financing 21,000 affordable home mortgages
• $36 million in affordable healthcare and rehabilitation facilities
• $696 million in economic development (i.e., environmental sustainability, healthy communities, neighborhood revitalization)
• $961 million in statewide homeownership and down payment assistance programs
• $337 million in enterprise development/job creation
“Every dollar invested in the Fund directly and positively impacts a family or community in need – from a social and/or environmental perspective,” said Alyssa Greenspan, CCM’s president and COO. “Over the past 20 years, the firm has worked closely with its clients to expand its impact customization to include new and relevant impact themes such as disaster recovery, gender lens, sustainable agriculture, and transit-oriented development. It is gratifying to share the impact of our investments with clients through our customized impact reporting while also providing liquidity, diversification, and historical competitive returns.”
“We are extremely proud that the Fund was in the top 1% of its intermediate government category of 309 funds in the calendar year of 2015 and the best performer in its intermediate government category of 250 funds in the calendar year of 2017, as measured by Morningstar Inc.,” said Andy Kaufman, CCM’s chief investment officer. “As a fiduciary, our primary objective is to deliver superior risk-adjusted returns and to preserve capital which we have met for our clients over the last 20 years.”
“Impact/ESG investing is embedded in CCM’s mission and DNA – our team analyzes and researches the use of proceeds for every bond prior to purchase to determine the projects and/or programs financed and what positive impacts result from that investment,” said David Sand, CCM’s chief impact strategist. “The Fund is also fossil fuel free, which allows for investors to have a fixed income option when fully divesting a portfolio.”
The Fund’s Institutional Shares (CRANX) has a 4-Star Overall Morningstar Rating™ and its annualized total return for 1-year, 5-year, and 10-year is 6.28%, 2.55%, and 3.05%, respectively, as of July 31, 2019. The Fund had total net assets of $2.1 billion as of July 31, 2019.
Community Capital Management, Inc.
Community Capital Management, Inc. (CCM) is an investment adviser registered with the Securities and Exchange Commission. Headquartered in Fort Lauderdale with employees in Boston, Charlotte, the New York City area, and Southern California, CCM was founded in 1998 and manages approximately $2.6 billion in assets. The firm believes a fully integrated portfolio – one that includes environmental, social and governance (ESG) factors – can deliver strong financial performance while simultaneously having positive long-term economic and sustainable impact. For more information.
As of 6/30/19, the average annual total returns for CRANX for 1-year, 5-year, 10-year and since CRANX inception were 5.97%, 2.47%, 3.10%, and 3.50%. The performance data quoted represents past performance and 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. The expense ratio for CRANX is 0.45%.
Carefully consider the risks, investment objectives, charges and expenses of the Fund before investing. The prospectuses contain this and other important information. Call 866-202-3573 for a prospectus. Please read the prospectus carefully before investing.
Community Capital Management, Inc. is an investment advisor registered with the Securities and Exchange Commission under the Investment Advisers Act of 1940. Past performance does not guarantee future results. Market conditions can vary widely over time and can result in a loss of portfolio value. A full list of regulatory disclosures for Community Capital Management, Inc. are available by visiting: https://www.ccminvests.com/regulatory-disclosures
The Fund is distributed by SEI Investments Distribution Co. which is not affiliated with Community Capital Management, Inc.
The Morningstar Rating is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts). Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. As of 7/31/19, CRANX was ranked 25 out of 205 funds in the last three years, 14 out of 190 funds in the last five years, and 28 out of 149 funds in the last ten years. Rankings for the other share classes may vary.