Mission-Related Cash Deposits and Fixed Income

Transcription

1 Mission-Related Cash Deposits and Fixed Income May 10, 2012 Seattle, Washington Presented by: Barbara VanScoy Founder, Chair & Senior Portfolio Manager Community Capital Management

2 Firm Overview Primary goal: To produce aboveaverage, risk-adjusted returns while providing added diversification and simultaneously having a positive impact on the community and the environment. COMMUNITY CAPITAL MANAGEMENT - Founded in Over $1.5 billion in fixed income assets as of 3/31/12. - Headquartered in Ft. Lauderdale, FL with an office in Charlotte, NC. - A focus on community and sustainable investments. - Available investment vehicles: Mutual fund: CRA Qualified Investment Fund Separate account: Core Fixed Income Composite - Clients include: Foundations Public Funds Religious Organizations Insurance Companies Financial Institutions 2

3 Role of Fixed Income Manager Products Available Complementary Strategy Income Diversification Financial Returns Tailored Portfolios Opportunities for Community Impact Mortgage-Backed Securities; Asset-Backed Securities; Municipal Bonds Seeks to reduce volatility while replicating the returns of the Barclays Capital Aggregate Bond Index. Designed to increase income without taking on additional interest rate or credit risk. Designed to have lower correlation to equity and other core fixed income strategies. Seeks competitive and consistent returns with less risk. Ability to customize a portfolio based on mission or geography. Homeownership Jobs/Small Business Development Affordable Rental Housing Environmental Sustainability Neighborhood Revitalization Affordable Healthcare Healthy Communities 3

4 Mission-Related Investing via a Fixed Income Portfolio 1 Small business loans Single Family Agency MBS, 32.3% Cash, 2.9% Other3, 1.9% SBA Pools & Loans 2, 3.3% Taxable Municipal Bonds 4, 17.3% Affordable rental housing Neighborhood revitalization Environmental sustainability First-time homebuyer programs Targeted market rate home loans for low- and moderate-income borrowers Multifamily Agency MBS 5, 42.3% Affordable rental housing Neighborhood revitalization Environmental sustainability 1 Source: BondEdge. Sector allocation data as of 3/31/12. 2 SBA: Small Business Administration 3 Other represents U.S. Government and U.S. Credit 4 Includes 2.69% in Alternative Minimum Tax bonds and 0.04% in tax-exempt bonds 5 Includes 0.31% in Community Reinvestment Fund (CRF) bonds (non-agency MBS) 4

5 Financial Performance as of 3/31/12* 9.00% 8.00% 7.95% 7.71% 7.62% 7.00% 6.00% 6.25% 6.11% 6.04% 5.76% 5.61% 5.80% 5.00% 4.00% 3.00% 2.00% 0.72% 1.00% 0.64% 0.30% 0.00% MRQ 1-Year 5-Year 10-Year CCM Core Fixed Composite (Gross of Fees) 0.72% 7.95% 6.11% 6.04% CCM Core Fixed Composite (Net of Fees) 0.64% 7.62% 5.76% 5.61% Barclays Aggregate 0.30% 7.71% 6.25% 5.80% *See slide 10 for important performance disclosure information. 5

6 Sample Impact Profile Impact: Affordable Rental Housing Environmental Sustainability Neighborhood Revitalization Community Space Project Seola Crossing in Seattle is the first rental housing complex in the Greenbridge HOPE VI redevelopment of Park Lake Homes I. The 187-unit rental property replaces housing for deteriorated public housing. The mixed-use project includes housing, a community hub with a new elementary school, early learning center, a renovated community center, a public library, and some added retail shops. Seola Crossing is a 3-Star Built Green property that incorporates sustainable features such as recycling, water conservation and is energy efficient. The security identified and described herein is for illustrative purposes only and its selection was based upon nonperformance criteria, such as the security s social and/or environmental attributes. The holding is current as of 3/31/12. 6

7 Sample Impact Profile Impact: Jobs Small Business Development Access to Capital Healthy Foods Project Alta Dena Express is a drive-thru dairy in Santa Fe Springs, California. All of their milk comes from family farmers who feed their cows a nutritious diet including wholesome alfalfa hay, which increases milk nutrition and flavor. The loan to Alta Dena Express is through the Small Business Administration s (SBA) 7(a) program which was established to serve small business borrowers that cannot otherwise obtain private sector financing under suitable terms and conditions. The SBA 7(a) program is SBA s primary vehicle for providing small businesses with access to credit. The security identified and described herein is for illustrative purposes only and its selection was based upon nonperformance criteria, such as the security s social and/or environmental attributes. The holding is current as of 3/31/12. 7

8 Sample Impact Profile Impact: School Renovations Healthy Foods Nutrition Environmental Sustainability Project Renovations for three elementary and two middle schools in Kentucky, which includes: rework of play areas; replacement/upgrade of electrical systems; school additions; and renovation of classrooms, science labs, art, library and other specialized rooms. Two of the schools are enjoying fresh produce this year as part of the federal Fresh Fruit and Vegetable Program. Fayette County Public School District, through federally assisted meal programs, provides nutritionally balanced, low-cost or free meals to students each school day and have qualified nutritionists helping administer the school meal programs. The security identified and described herein is for illustrative purposes only and its selection was based upon nonperformance criteria, such as the security s social and/or environmental attributes. The holding is current as of 3/31/12. 8

9 Impact Measurement* Community Capital has invested approximately $4.3 billion in community development initiatives on behalf of its clients, generating results that make a powerful impact. 228,000 affordable rental housing units 10,500 home mortgages for low- and moderate-income families $31 million in affordable healthcare facilities $237 million in community development including environmentally sustainable and neighborhood revitalization activities $440 million in statewide homeownership and down payment assistance programs $189 million in job creation and small business development * Approximate figures as of 3/31/12. 9

10 Contact Information Firm Headquarters Community Capital Management, Inc Weston Road, Suite 101 Weston, FL Contact Barbara VanScoy Founder, Chair & Sr. Portfolio Manager (704) Community Capital Management, Inc. is a Florida-based investment advisor registered with the Securities and Exchange Commission under the Investment Advisers Act of The Core Fixed Income Composite is comprised of all actively managed fixed-income accounts managed by Community Capital Management that invest mainly in investment grade securities with community development as the primary purpose. The Core Fixed Income Composite assets as of March 31, 2012 were $1.4 billion which represented 93.0% of the firm s total assets. Returns are calculated in U.S. dollars. Community Capital Management has received a Firm-wide GIPS Verification for the period August 30, 1999 through March 31, In addition, the Core Fixed Income Composite has received a Performance Examination for the same time period. To receive a complete list and description of Community Capital Management composites and/or a presentation that adheres to GIPS or a copy of Community Capital Management s Form ADV Part II, contact Alyssa Greenspan, CFA at (877) or agreenspan@ccmfixedincome.com, or write Community Capital Management: 2500 Weston Road, Suite 101, Weston, FL Bonds are subject to interest rate risk and will decline in value as interest rates rise. Past performance does not guarantee future results. This performance report should not be construed as a recommendation to purchase or sell any particular securities held in composite accounts. Market conditions can vary widely over time and can result in a loss of portfolio value. The results portrayed included the reinvestment of dividends, interest and other earnings. The index information provided herein does not reflect the impact of fees; you cannot invest directly in an index. Gross returns in this presentation do not include effect of management fees. If included, returns would be lower. Gross returns will be reduced by management fees. For example, a 1% annual fee from an account with a ten-year annualized growth rate of 10% will produce a net result of 8.95%. Actual performance results may vary from this example. For a more detailed description of fees and expenses, see Form ADV Part 2. 10