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November 22, 2010
Community Investing Fixed-Income Fund Reaches $1 Billion in Assets under Management
    by Robert Kropp

Community Capital Management's Community Reinvestment Act (CRA) Qualified Investment Fund has invested over $3 billion in community development activities.

Launched in 1999, the Community Reinvestment Act (CRA) Qualified Investment Fund invests in "single family and multifamily agency mortgage-backed securities, government-guaranteed Small Business Administration pools, and taxable municipal bonds," according to Community Capital Management, a Florida-based fixed-income investment manager.

Originally designed "as a vehicle for banks to satisfy their Community Reinvestment Act (CRA) requirements," Community Capital Management stated, the fund "has since grown to include foundations, religious organizations, public funds, and individual investors."

Last week, Community Capital Management announced that its CRA Qualified Investment Fund has surpassed $1 billion in assets under management. According to John Taylor, Chairman of the Board of Trustees for the Fund, "Not only has the Fund revolutionized CRA investing but it has proven great success in identifying and purchasing securities that finance vital community and economic development projects nationwide."

In a
press release announcing the milestone, Community Capital Management stated, "The CRA Qualified Investment Fund has invested over $3 billion in community development activities on behalf of its shareholders financing the following community development activities: 157,959 affordable rental housing units; 8,188 home mortgages for low- to moderate-income families; $27.3 million in affordable healthcare facilities; $145.3 million in community development including neighborhood revitalization and environmental sustainability; $332.3 million in down payment assistance and statewide homeownership programs; and $98.0 million in job creation and small business development."

Since its launch in 1999, the CRA Qualified Investment Fund has consistently posted positive returns for fixed-income investors with a community investment mission. The Fund seeks to provide an ongoing yield advantage over its benchmark, the Barclays Capital US Aggregate Bond Index..

Barbara VanScoy, Senior Portfolio Manager, explained its success in a July conversation with, saying, "We only select securities that we think are worthwhile. The pools we buy are all 30 year fixed rate loans, we do not invest in adjustable rates, and we look at the borrowers themselves. They have to be low-to-moderate income borrowers who can afford the loans they take out. They may be low wealth, but they're high credit quality."


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