Mission-basedT H E

I N V E S T O R

A Publication of Community Capital Management, Inc.

Since 1983, the SRI Group at RBC has of-fered comprehensive investment strategies for so-phisticated investors committed to social change.Today the team of eight investment professionalsconsults on over $1 billion in assets and is one ofthe firm’s leading investment consulting groupsfocused exclusively on social and environmentalinvesting. The following Q&A was conductedwith Financial Advisors Tom Van Dyck andCatherine Chen.

(1) How did RBC get started in offeringclients social and sustainable investingstrategies?

The SRI Wealth Management Group hasbeen around for 30 years. We understandthat investing is the economic expression ofour clients’ thoughts and values. During thepast three decades, we have demonstratedthat you can incorporate environmental, so-cial and governance factors into investmentportfolios and achieve competitive returnsas well as positive social impacts. Promot-ing investment strategies that connect fi-nancial markets with healthy environments,sustainable communities, and humane anddiverse workplaces is at the core of what wedo. We help our clients translate their de-

Investing inHealthy FoodsMany low-income communities nation-wide lack access to grocers offering nutri-tious, healthy food. These communities areoften referred to as food deserts – areas inurban or rural settings with little or no ac-cess to large grocery stores that offer freshand affordable foods needed to maintain ahealthy diet. Instead of these stores, manyareas are flooded with fast food restaurantsand convenience stores. This ultimately canlead to obesity and other health-related ill-nesses. Communities that have access tomarkets offering fresh

Spring 2013 Newsletter

The spring 2013 issue of The Mission-Based Investor features a Q&A with Tom VanDyck and Catherine Chen of RBC Wealth Management’s SRI Group discussinghow they work with clients committed to sustainable and social investing. We also

include an article on investing in healthy foods, spotlight three recent investments in this space,and incorporate a new informational brochure that explains how the impact targeting processworks within the CRA Qualified Investment Fund Institutional Shares.

sires to make a difference into a solid in-vestment strategy. RBC has been a recog-nized global leader in corporate initiativesthat have a significant positive impact.RBC’s Blue Water Project is a $50 millionprogram designed to foster a culture ofwater stewardship globally. Additionally,RBC has recently announced a $20 millioncommitment to Impact Investing. RBC hasbeen named “Global 100 Most SustainableCorporations” for eight consecutive yearsand has a host of others awards and recog-nitions. RBC is one of the leading banks inthe world focusing on diversity and sus-tainability. SRI Wealth Management cameto RBC in 2006.

(2) What types of clients do you workwith to implement these strategies andare you seeing an increase in clientsinquiring about these approaches?

We provide socially responsible investment(SRI) consulting advice on approximately$1.3 billion in assets. We work primarilywith family foundations, wealth inheritors,entrepreneurs, and celebrities. Clients aredrawn to us because not only do we haveexpertise in the field of socially responsibleinvesting and Impact Investing, we shareour clients’ values and the desire to findsolutions to their SRI continued on page 2

continued on page 2

Committed to Sustainable and SocialInvesting - Q&A with RBC WealthManagement’s SRI Group

The CRA Fund was recently featured in an article in

Financial Advisor. Visit www.crafund.com to reada copy. Click on Investing in

Hurricane Sandy under “In the News.”

CRA Fund Impact Targeting ProcessWe are often asked to explain how thetargeting process works within the CRAFund’s Institutional Shares (Ticker:CRANX). In an effort to help clarify howthe process works, we have created a newinformational brochure – “Impact TargetingProcess” – and have included a copy in thisnewsletter. We hope this helps investors,consultants and advisors better understandthe process. The impact initiative list is notlimited to those missions listed. The Fund’sportfolio management team will work withyou and/or your client(s) to customize investments that meet impact goals.

MISSION-BASED INVESTOR I SPRING 20132

investment goals and objectives. Ourclients get the best of both worlds withour group – the personal touch of a smallshop with the resources of one of thelargest and more responsible global banks.

The market for social and sustainable in-vestment is one of the fastest-growingmarkets within the financial industry.Many people today feel that they don’thave to compromise their values whenthey invest. And they’re right!

(3) How do you identify investmentmanagers with viable strategies that arealigned with your clients’ social and/orsustainable interests?

What makes our team unique is our

Committed to Sustainable and Social Investingcontinued from page 1

Investing in Healthy Foodscontinued from page 1

strong working relations with top quar-tile third-party money managers. We alsohave our own in-house ESG/sustainabil-ity analyst. Our process begins withidentifying our clients’ risk/return ob-jectives and sustainability criteria. We de-sign their asset allocations and thesustainability analyst works with themoney-managers to overlay our clients’specific sustainability criteria, imple-menting it across their portfolio. This ap-proach gives us more flexibility in ourasset allocations and exposes our clientsto a wider array of strategies. The thirdparty managers that we work with investin both public and private securities sowe can cover the full spectrum of ourclients’ asset allocation needs.

(4) What recommendations would you offer to organizations looking toincorporate social/sustainable investinginto their portfolio?Make sure you select experiencedESG/sustainability professionals that un-derstand this type of investing, rather thana firm that treats it as a marketing ploy orgimmick. If you don’t go with experi-enced professionals who have the focus,the shared values and understand the nu-ances of ESG/SRI investing, you maycompromise both your philanthropic andfinancial goals.

For more information about the RBC WealthManagement SRI Group, please visitwww.rbcwmfa.com/sri.

foods, fruits and vegetables will typically optfor more nutritious choices, helping to re-duce diet-related health problems.

In the field of impact investing, there are opportunities for investors to provide low-income communities access to fresh,healthy and sustainable foods. In fact, overthe last couple years, several articles and pa-pers have been published on this very topic.These include, but are not limited to: (1)The Springcreek Foundation’s monograph,Promoting Sustainable Food Systems ThroughImpact Investing, that offers a conceptualframework for analyzing investment op-portunities in sustainable food systems; (2)RSF Social Finance’s publication, Bridgingthe Gaps: Funding and Social Equity Across theFood System Supply Chain, that examinesthe current state of funding for addressingthe problems in the food system and pro-motes the goals where capital is flowingand where it is not flowing; and (3) EllieWinninghoff ’s Financial Advisor Green arti-cle, “Follow the Food,” that talks abouthow impact investors can work to scale upthe supply of fresh, local food and buildlocal and regional food systems.

At Community Capital, many of the bonds

Communities that have access to markets offering fresh foods, fruits and vegetables will typicallyopt for more nutritious choices, helping to reduce diet-related health problems.

we invest in help finance a variety ofhealthy and sustainable food initiatives.These include small businesses that useagriculturally sustainable and locallysourced foods to grocery stores located infood deserts to public schools with en-hanced healthy lunch programs.

Over the last couple years, we have seen anincrease in these financing initiatives,specifically in small business loans to busi-nesses offering healthy foods and also with

affordable rental housing properties thatfeature community gardens. Some of theproperties even have volunteers from localnurseries assist the residents in growing andlearning about the food.

As opportunities continue to grow in thisspace, the ultimate goal is for investors tohelp further the cause through their invest-ments, thus helping to contribute to ahealthier lifestyle for our communities, ournation, and future generations.

SPRING 2013 I MISSION-BASED INVESTOR 3

SPOTLIGHT ON RECENT CRA FUND HEALTHY FOOD COMMUNITY INVESTMENTS

FireFly FarmsAccident, MDThe CRA Fund invested in a Small BusinessAdministration (SBA) Pool that included aloan to FireFly Farms, a producer of cheesethat uses agriculturally sustainable, locally-sourced fresh goat’s milk and time-honored,traditional methods of goat cheese making.

FireFly Farms is committed to caring forland and protecting the environment fortoday’s communities and future generations.They offer award-winning premium goatcheese produced and sourced locally fromMaryland’s Allegheny Plateau.

The loan to FireFly Farms was authorizedunder the SBA’s 7(a) Loan Guaranty Pro-gram, which was established to serve smallbusiness borrowers that cannot otherwiseobtain private sector financing under suit-able terms and conditions.

Hidden Creek VillagePaso Robles, CAA recent CRA Fund investment helped fi-nance Hidden Creek Village, an 81-unit af-fordable rental project. Each apartment unitincludes energy efficient features, whichhelp to reduce utility costs to the residents.Some of its other sustainable features includean edible garden, recycled content flooring,drought tolerant landscaping, and an on-sitewater retention system.

Residents at Hidden Creek Village have theopportunity to participate in youth pro-grams and ongoing educational topics insustainable gardening, energy conservation,financial management, exercise and health.

The investment that included financing for AVS was purchased in January 2013. As of January 31, 2013, this investment represented 0.02% of the Fund’sassets. As of December 31, 2012, the Hidden Creek Village investment and the SBA pool which included a loan to FireFly Farms represented 0.55% and0.27%, respectively, of the Fund’s assets. The securities identified and described above are for illustrative purposes only. Their selection was based upon non-performance criteria, such as the security’s social and/or environmental benefits.

American Vegetable Soybean& Edamame, Inc.Mulberry, ARA recent Fund investment will help fi-nance American Vegetable Soybean &Edamame, Inc. (AVS) acquire land andconstruct a new processing facility for soy-bean products. The arrival of the companymarks an exciting new opportunity for theArkansas River Valley. While the Arkansas

Delta is more widely known for soybeanproduction, the University of Arkansas’Division of Agriculture has been testingsoybean growth in the Arkansas River Val-ley for several years.

The company anticipates bringing 50 ormore full-time jobs to the Arkansas RiverValley. In addition, the edamame productgrown, processed and distributed from thecompany will supply a very healthy foodproduct not only for the U.S. market(s) butthe overseas markets as well. JYC Inter-national, the parent company for AVS, hasbeen researching the possibility of domes-tic production in an effort to find soybeanscomparable to the consistency and qualityof edamame imported from China.

Edamame is one of the fastest grow-

ing specialty foods in the United

States. Edamame is a soybean har-

vested at the peak of ripening. Its

popularity has soared in the past few

years as soy plants have been touted

to balance hormones, improve elastic-

ity of the arteries, and reduce the risk

of heart disease. Edamame are low

in fat and high in protein, fiber and

almost every other essential vitamin

and mineral.

Sustainable gardening applies the theory of sustainability –maintaining ecological balancethrough the utilization of naturalresources without damaging theenvironment – to growing fruits,vegetables, livestock feed crops

and flowers.

Sustainable agriculture involves foodproduction methods that keep farmseconomically viable while also caringfor the environment and providinghealthy choices for consumers.

2500 Weston Road, Suite 101Weston, FL 33331Phone: 954-217-7999Toll-Free: 877-272-1977Fax: 954-385-9299www.ccmfixedincome.com

Community Capital Management, Inc. is a Florida-based investmentadviser registered with the Securities and Exchange Commission underthe Investment Advisers Act of 1940. Investing involves risk, includingpossible loss of principal. Bonds and bond funds are subject to interestrate risk and will decline in value as interest rates rise. The Fund is non-diversified. Current and future holdings are subject to risk.

The CRA Qualified Investment Fund is distributed by SEI Invest-ments Distribution Co. (SIDCO), which is not affiliated with Com-munity Capital Management, Inc. The Fund offers three total shareclasses, each with different expenses that would affect performance. Care-fully consider the risks, investment objectives, and charges and expenses ofthe Fund before investing. This and other information can be found in theFund’s prospectus which can be obtained by calling 866-202-3573.Please read the prospectus carefully before investing.

CRA Qualified Investment Fund InstitutionalShares (CRANX) Performance as of 12/31/12

Performance prior to March 31, 2007 is that of the CRA Shares(CRAIX). Expenses for the Institutional Shares are lower thanthe CRA Shares.

Past performance does not guarantee future results. Currentperformance may be lower or higher than the performance dataquoted. An investor’s investment return and principal value willfluctuate, so that your shares when redeemed may be worth more orless than your initial cost. To obtain the most recent month-endstandardized performance, call 877-272-1977. The total annualoperating expenses for the Institutional Shares are 0.49%.

1-Year 4.27%

5-Year 5.33%

10-Year 4.48%

Since Inception (3/2/07) 5.33%

Community Capital Management

18 6,366 1,942 12,083,922 1,053

For the Period: 3/1/2012 to 3/1/2013

BTU's

STEP 1

CRA Qualified Investment Fund Institutional Shares (Ticker: CRANX)Impact Targeting Process

Minimum investment required for geographic or impact targeting is $500,000. Any targeting requested below this amount is at the portfolio manager’s discretion. The CRA QualifiedInvestment Fund is distributed by SEI Investments Distribution Co. (SIDCo), 1 Freedom Valley Dr., Oaks, PA 19456. SIDCo is not affiliated with Community Capital Management. Investing involves risk, including possible loss of principal. Bonds and bond funds are subject to interest rate risk and will decline in value as interest rates rise. Carefully considerthe Fund’s investment objectives, risks, charges and expenses. This and other information can be found in the Fund’s prospectus which is available by calling 866-202-3573. Please read it carefully before investing.

STEP 2 STEP 3 STEP 4 STEP 5

Investments that focus on geographies can target at the state and/or countylevel. Investments that focus on community development can target a variety of initiatives including, but not limited to:

The portfolio management team will work with you to customize your investment to meet your impact goals. For shareholders that do not elect any screens, all Fund investments help finance vital community developmentinitiatives nationwide.

• Affordable Housing• Affordable Healthcare Facilities• Education/Schools• Childcare Facilities• Environmental Sustainability

• Neighborhood Revitalization• Healthy Communities• Job Creation• Small Business Development• Access to Capital

Step 3: Shareholders receive a detailed report for each security in the Fund purchasedand earmarked on theirbehalf outlining both the financial and community/geographicimpact.

Step 4: The Fund’sportfolio managementteam utilizes a propri-etary software trackingsystem to ensure eachdollar invested is in accordance with eachshareholder’s mandate.

Step 5: Shareholders’investments supporttheir mission while enjoying daily liquidityand the diversificationof a publicly-tradedfixed income mutualfund.

Step 1: CRANX is anopen-end, no-load, pub-licly traded mutual fund.Its investment objectiveis to provide a high levelof current income consistent with thepreservation of capital.

Step 2: CRANX allowsshareholders to directtheir investment dollarswithin the Fund to support specificimpact initiatives or geographies.

The Fund’s investment philosophy seeks to generateabove-average, risk-adjusted returns with lower volatility and lower credit risk than its benchmark (Barclays Aggregate Bond Index).