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Management Company: Community Capital Management, Inc.
Funds Affected: (1) CRA Qualified Investment Fund, (2) CCM Alternative Income Fund
Principal Sustainable Investment Management Strategy: (1) Thematic/Impact Investing; ESG Integration focused on environmental and social issues, (2) ESG integration, impact and negative screening (exclusions)
Summary:
(1) The fund’s principal investment strategy is to invest in debt securities and other debt instruments that will cause shares of the fund to be deemed to be qualified under the Community Reinvestment Act (CRA) qualified investmentsCommunity Reinvestment Act (CRA) qualified investmentsCommunity Reinvestment Act (CRA), so that financial institutions that are subject to the CRA may receive investment test or similar credit under the CRA with respect to shares of the fund held by them.

The fund invests in debt securities and other debt instruments that the fund’s investment advisor believes will be CRA-qualifying. Such securities would include single-family, multi-family and economic development loan-backed securities. As a result, the fund invests a significant amount of its assets in securities issued by the Federal National Mortgage Association (Fannie Mae), Federal Home Loan Mortgage Corporation (Freddie Mac), and Government National Mortgage Association (Ginnie Mae). The fund may also invest in certain securities issued by the Small Business Administration and other U.S. Government agencies, authorities, instrumentalities and sponsored enterprises.

The fund may invest a significant amount of its assets in taxable municipal bonds whose primary purpose is community development. The fund may also invest in tax-exempt municipal securities.

The fund may invest in certificates of deposit that are insured by the Federal Deposit Insurance Corporation (FDIC) and are issued by financial institutions that are (1) certified as Community Development Financial Institutions or (2) low-income credit unions, or minority- or women-owned and primarily lend or facilitate lending in low- and moderate-income (LMI) areas or to LMI individuals to promote community development.

Although as a general matter an institution’s CRA activities will be evaluated based on the extent to which they benefit the institution’s delineated assessment area(s) or a broader statewide or regional area that includes the institution’s assessment area(s), deposits with low-income credit unions or minority- or women-owned financial institutions need not also benefit a shareholder’s assessment area or the broader statewide or regional area to be CRA-qualified.

The fund incorporates the environmental and social aspects of ESG investing into its investment philosophy by proactively seeking market-rate, fossil fuel free bonds that positively contribute to economic and sustainable impact.

We incorporate the environmental and social aspects of ESG investing into our investment philosophy by proactively seeking market-rate, fossil fuel free bonds that positively contribute to economic and sustainable impact. This approach provides an added layer of investment transparency by detailing the use of bond proceeds and providing a full understanding of the programs being financed.We incorporate the environmental and social aspects of ESG investing into our investment philosophy by proactively seeking market-rate, fossil fuel free bonds that positively contribute to economic and sustainable impact. This approach provides an added layer of investment transparency by detailing the use of bond proceeds and providing a full understanding of the programs being financed.

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