CCM Alternative Income Fund (CCMNX)
Provide (1) a high level of current income consistent with the preservation of capital and (2) reduced correlation to conventional stock and bond markets while considering environmental, social and governance (ESG) factors.
REASONS TO CONSIDER INVESTING
INCOME: Seeks income (sec 30-day yield) of 3-month T-Bill + 4.0%.
VOLATILITY: Looks to have standard deviation between 2.0 – 4.0%
CORRELATION: Pursues low correlation to conventional stock and bond markets (0.0 to 0.50 to the S&P 500 and Bloomberg Barclays Aggregate).
IMPACT/ESG: To our knowledge, CCMNX is the only liquid alternative income fund to employ impact/ESG criteria in its investment approach.
|Asset Class||Liquid Alternative|
|Benchmark||FTSE 3-Month T-Bill Index|
|Expense Ratio (gross)||2.85**|
|Overall Morningstar Rating™
(as of 7/31/18)
(based on risk-adjusted return among 305 Multialternative Funds)
|MONTH-END DATA as of 7/31/18|
|30-Day SEC Yield||5.53%|
|Unsubsidized 30-Day Yield||5.53%|
|Total Fund Assets||$37 million|
|Fossil Fuel Free||No|
|FTSE 3-Month Treasury Bill Index||0.95%||1.41%||0.43%||0.41%|
|FTSE 3-Month Treasury Bill Index||0.44%||0.79%||1.32%||0.40%||0.39%|
**The total annual fund operating expenses is 2.85%. The net expense ratio is 2.74% which is the amount the investor would pay. The total annual fund operating expenses after fee waivers and expense reimbursements (other than acquired fund fees and expenses and dividend expense and prime broker fees on securities sold short) is 1.40%. Waivers are contractual and in effect until 9/30/18.
3-month and YTD returns are not annualized. Performance quoted is past performance and does not guarantee future results. Current performance may be lower or higher than the performance data quoted. An investor’s investment return and principal value will fluctuate, so that your shares when redeemed may be worth more or less than your initial cost.
Mutual fund investing involves risk including the loss of principal. Bond and bond funds are subject to interest rate risk and will decline in value as interest rates rise. High yield bonds involve greater risks of default or downgrade and are more volatile than investment grade securities, due to the speculative nature of their investments. The Fund uses investment techniques that are different from the risks ordinarily associated with equity investments. Such techniques and strategies include hedging risks, merger arbitrage risks, derivative risks, short sale risks, leverage risks, commodities risk, and foreign investment risks, which may increase volatility and may increase costs and lower performance. Commodities can be highly volatile and the use of leverage may accelerate the velocity of potential losses.
Carefully consider the risks, investment objectives, charges and expenses of the Fund before investing. The prospectus contains this and other important information. The prospectus is available via the link above. Please read the prospectus carefully before investing. The CCM Alternative Income Fund is distributed by SEI Investments Distribution Co. (SIDCO), 1 Freedom Valley Drive, Oaks, PA 19456, which is not affiliated with Community Capital Management or any other affiliate.
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The Morningstar RatingTM for funds, or “star rating”, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three- year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. As of 6/30/18, the CCM Alternative Income Fund was rated against 288 Multialternative funds over the last three years and 148 funds over the last five years. With respect to these Multialternative funds, the CCM Alternative Income Fund received a Morningstar Rating of four stars for the three-year period and four stars for the five-year period.