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Community Capital Management, INC.

PRI reporting framework 2020

You are in Strategy and Governance » Investment policy

Investment policy

SG 01. RI policy and coverage

New selection options have been added to this indicator. Please review your prefilled responses carefully.

01.1. Indicate if you have an investment policy that covers your responsible investment approach.

01.2. Indicate the components/types and coverage of your policy.

Select all that apply

Policy components/types

Coverage by AUM

01.3. Indicate if the investment policy covers any of the following

01.4. Describe your organisation’s investment principles and overall investment strategy, interpretation of fiduciary (or equivalent) duties,and how they consider ESG factors and real economy impact.

At CCM, we believe 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 outcomes. Our strategies utilize an innovative bottom-up approach to fixed income and equity investing combining the positive impacts of impact and ESG investing with rigorous financial analysis, an inherent focus on risk management, and transparent research. We provide impact investing solutions coupled with hands-on client service and report to clients on the multiple positive impact outcomes of their investments.

We execute on this philosophy as follows:

- CCM manages assets that align with one or more of 18 impact themes. These themes include: affordable health/rehab care, affordable housing, arts & culture, disaster recovery, economic inclusion, education/childcare, enterprise development/jobs, environmental sustainability, gender lens, government supported communities, healthy communities, human empowerment, minority neighborhoods, neighborhood revitalization, rural community development, seniors/disabled, sustainable agriculture, and transit-oriented development. Clients are encouraged to tell us their impact preferences.
- We look for affirmative, bottom-up expressions of impact and ESG qualifications.
- Our two-fold approach seeks positive impact and ESG attributes that align with our impact themes while also avoiding investments which we believe are inconsistent with these themes.

01.5. Provide a brief description of the key elements, any variations or exceptions to your investment policy that covers your responsible investment approach. [Optional]

FIXED INCOME

CCM’s fixed income strategies invest in high quality, well-researched bonds where we have confidence that the use of the proceeds will have positive societal impacts.  Each of the bonds that we select for a portfolio must meet our stringent impact and financial criteria.  Our impact criteria includes:

Use of Proceeds: The use of proceeds must positively impact a community in one or more ways and align with one or more of our 18 impact themes..
Transparency: Our proprietary approach, whereby we have visibility into the use of bond proceeds, allows us to better understand the financed programs and have confidence in their expected positive environmental and social outcomes.
Reporting: We must be able to quantify and report on the expected impact and/or detail the qualitative benefits of each investment. Quantitative data can include the number of jobs created or the number of affordable housing units created as well as dollar amounts invested in impact themes. Qualitative research is the “story,” so to speak, which includes detailed explanations of what the security is financing. We report to clients on the positive impact outcomes of their investments and offer institutional clients the opportunity to customize their fixed income portfolios by geographies or impact themes.

EQUITIES

Similar to our approach in fixed income, we evaluate equity securities from an impact and financial perspective.  CCM supplements its in-house research with third-party data to determine where potential holdings fall in the following four categories:

Strong Positive Impact: companies that we believe are significant contributors to society such as those that generate more than 50 percent of their revenue from a product or service that aligns with one ore more of our 18 impact themes.
Moderate Positive Impact: companies which have characteristics that align with one or more of our 18 impact themes and that we believe are a net benefit to society.
Neutral Impact: companies that do not fall within the two categories above but where there exists the potential to be included in the two categories in the future.
Negative Impact: companies with excessive ESG-related risk such as fossil fuel exploration and production or any activity related to coal, tobacco, weapons, and prison management, among others. These securities are not eligible for investment.

For investment strategies that include both fixed income and equity investments in a single portfolio, we apply the same respective tools and techniques mentioned above to each investment when measuring, monitoring, and tracking impact and ESG metrics and outcomes.

01.6. Additional information [Optional].

          
        

SG 01 CC. Climate risk (Private)


SG 02. Publicly available RI policy or guidance documents

 

02.1. Indicate which of your investment policy documents (if any) are publicly available. Provide a URL and an attachment of the document.

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02.2. Indicate if any of your investment policy components are publicly available. Provide URL and an attachment of the document.

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02.3. Additional information [Optional].

We publish an Annual Impact Report on our impact and ESG efforts. Our most recent report is attached in some of the sections above and may be found on our website at: https://www.ccminvests.com/wp-content/uploads/2020/02/CCM-2019-Annual-Impact-Report-Final.pdf


SG 03. Conflicts of interest

03.1. Indicate if your organisation has a policy on managing potential conflicts of interest in the investment process.

03.2. Describe your policy on managing potential conflicts of interest in the investment process.

All policies on managing potential conflicts of interest in the investment process are included in CCM's compliance manual. A copy of the manual is available upon separate written request.

03.3. Additional information. [Optional]


SG 04. Identifying incidents occurring within portfolios (Private)


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