2017 Impact/ESG ReportCCM Alternative Income Fund (CCMNX)

COMMUNITY CAPITAL MANAGEMENT

Impact Investing Since 1999

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Dear Shareholder,

We are pleased to send you the impact/Environmental, Social and Governance (ESG) report on the Community Capital Management Alternative Income Fund (CCMNX) for 2017. During the past year, we enhanced our impact/ESG due diligence process to provide greater transparency to our shareholders. While we did not change our investment policies or objectives, we are debuting a new way of sharing information with this report.

Over the past 18 years, CCM has invested over $8.3 billion in the impact themes on the left. We apply the same internal impact metrics to our corporate bond and equity investments in CCMNX. As a multi-asset class fund, CCMNX faces unique challenges in the consideration of impact for common stocks and bonds. CCM uses a combination of third party and in-house research to determine where potential holdings fall in the four-part segmentation described below.

• contains positive impact attributes - eligible for investment• has specific impact characteristics - eligible for investment• maintains neutral posture toward ESG risk - eligible for investment• has excessive ESG related risk - not eligible for investment

The portfolio management and research teams at CCM categorize the investment universe for CCMNX into four categories:

Affordable Health/Rehab Care

Education/Childcare

Government Supported Communities

Neighborhood Revitalization

Affordable Housing

Enterprise Development/Jobs

Healthy Communities

Rural Community Development

Arts & Culture

Environmental Stability

Human Empowerment

Seniors/Disabled

DisasterRecovery

Gender Lens

Minority Neighborhoods

Sustainable Agriculture

Transit-Oriented Development (TOD)

POSITIVE IMPACT• Equities, Preferreds, and

Corporate Debt: Revenue > 50% from impact themes

• Municipals, mortgage-backed securities, asset-backed securities, commercial mortgage-backed securities: Use of proceeds analysis on impact themes

• Financial institutions; outstanding and high satisfactory Community Reinvestment Act (CRA) ratings

IMPACT• Analysis of established third-party

research incorporating various impact/ESG scores and factors

• Net Benefit to Society :

• Less than 50% of revenue comes from positive impact themes but other positive policies and procedures

• Example: Good corporate citizenship

NEUTRAL• Potential to reach impact

status in the future

• Possibility of incremental changes in corporate behavior in response to future shareholder resolutions

• Does not violate any negative restrictions

NEGATIVE• Companies with any of the

following activities are excluded from the investment process:

• Fossil fuel exploration and production; any activity related to coal

• Tobacco, chemical manufacturing, weapons, prison management

• Regulatory issues, discriminatory labor practices, safety issues, poor CRA ratings

• Companies with a material involvement (over 30% of revenue) in: gaming, oil transportation & storage, fuel generation from fossil fuels, and junk food

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We are pleased to report that as of year-end, the Fund had no holdings in:

• Major fossil fuel companies• Weapons manufacturers• Prison stocks• Companies with well-known global supply chain issues

As of December 31, 2017, the Fund had approximately 50% of assets in positions coded as positive impact, 11% of the invested portfolio in positions coded impact and 39% in neutral names. CCM believes that none of the investments were in companies that contain undue ESG risk or are harmful to people or the environment.

CCM uses a proprietary impact tracking methodology that evaluates investments for alignment with CCM’s 17 impact themes. Initially developed for CCM’s work in fixed income, the impact tracking is now applied to equities. As of December 31, 2017, the CCMNX portfolio had varying degrees of exposure to the following impact themes.

CCMNX Investment

Allocation by ESG/Impact

Category

Percentages are dollar weighted and exclude cash, short positions, and options

As of 12/31/17

Positive Impact, 49.6%

Impact, 10.3%

Neutral, 40.1%

CCMNX Impact

Themes

Percentages are dollar weighted by theme. A

security may incorporate more than one theme

leading to greater than 100% in aggregate.

As of 12/31/17

Environmental Sustainability 24.8%

Enterprise Development/Jobs 17.0%

Affordable Housing 14.9%

Neighborhood Revitalization 8.2%

Healthy Communities 7.3%

Seniors/Disabled 6.2%

Transit-Oriented Development (TOD) 5.4%

Education/Childcare 4.2%

Human Empowerment 3.5%

Minority Neighborhoods 2.1%

Gender Lens 2.1%

Government Supported Communities

1.3%

Arts &Culture 1.3%

Affordable Health/Rehab Care

1.3%

Sustainable Agriculture 0.3%

CCMNX Impact

Themes

Percentages are dollar weighted by theme. A

security may incorporate more than one theme

leading to greater than 100% in aggregate.

As of 12/31/17

Environmental Sustainability 24.8%

Enterprise Development/Jobs 17.0%

Affordable Housing 14.9%

Neighborhood Revitalization 8.2%

Healthy Communities 7.3%

Seniors/Disabled 6.2%

Transit-Oriented Development (TOD) 5.4%

Education/Childcare 4.2%

Human Empowerment 3.5%

Minority Neighborhoods 2.1%

Gender Lens 2.1%

Government Supported Communities

1.3%

Arts &Culture 1.3%

Affordable Health/Rehab Care

1.3%

Sustainable Agriculture 0.3%

CCMNX Impact

Themes

Percentages are dollar weighted by theme. A

security may incorporate more than one theme

leading to greater than 100% in aggregate.

As of 12/31/17

Environmental Sustainability 24.8%

Enterprise Development/Jobs 17.0%

Affordable Housing 14.9%

Neighborhood Revitalization 8.2%

Healthy Communities 7.3%

Seniors/Disabled 6.2%

Transit-Oriented Development (TOD) 5.4%

Education/Childcare 4.2%

Human Empowerment 3.5%

Minority Neighborhoods 2.1%

Gender Lens 2.1%

Government Supported Communities

1.3%

Arts &Culture 1.3%

Affordable Health/Rehab Care

1.3%

Sustainable Agriculture 0.3%

CCMNX Investment

Allocation by ESG/Impact

Category

Percentages are dollar weighted and exclude cash, short positions, and options

As of 12/31/17

Positive Impact, 49.6%

Impact, 10.3%

Neutral, 40.1%

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Positive Impact BondsFHA ROBIN RIDGE FHA ST. FRANCIS USDA GRAND PRAIRIE Atlanta Development Authority City of Austin TX City of Baltimore MD Village of Bedford Park IL Central Valley Support Joint Powers Agency Fannie Mae Pool Florida Department of Environmental Protection Ginnie Mae I Pool Green Bay Redevelopment Authority Harris County Cultural Education Facilities Finance Corp Hollywood Beach Community Development District I King County Housing Authority Massachusetts Housing Finance Agency County of Miami-Dade FL City of Minneapolis MN Health & Educational Facilities Authority of the State of Missouri

City of Myrtle Beach SC New Jersey Economic Development Authority Northeast Ohio Medical University Foundation County of Ohio WV Special District Excise Tax Revenue Oklahoma Development Finance Authority Oportun Funding Orlando Community Redevelopment Agency Industrial Development Authority of the County ofPima/The

Rancho Cucamonga Redevelopment Agency SuccessorAgency

Sacramento County Public Financing Authority Salvation Army/United States United States Small Business Administration South Davis Sewer District Tesla Tuolumne Wind Project Authority FHA Lansford Positive Impact EquityCommunity Healthcare Trust Inc Independence Realty Trust Inc NRG Yield Inc Pattern Energy Group Inc Enercare Inc

As of 12/31/17List of Holdings

A full list of holdings as of December 31, 2017, and the way they have been coded by CCM’s research team is provided below:

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Impact BondsCity of Charlotte NC Airport Revenue Freddie Mac REMICS Government National Mortgage Association City of Montgomery OH San Diego County Regional Airport Authority County of Washoe NV Skandinaviska Enskilda Banken AB Impact EquityCedar Fair LP Dell Technologies Inc Class V WEINGARTEN REALTY INVESTO Neutral BondsBank of America Corp Barclays PLC Citigroup Inc HSI Asset Securitization Corp Trust 2005-I1 JPMorgan Chase & Co City of New Orleans LA Royal Bank of Scotland Group PLC Societe Generale SA DNB Bank ASA Neutral EquityAircastle Ltd Blackstone Mortgage Trust Inc Bloomin' Brands Inc Crestwood Equity Partners LP Deutsche Bank Contingent Capital Trust III Enterprise Products Partners LP Macquarie Infrastructure Corp NATIONAL RETAIL PROPERTIE ONEOK Inc REGAL ENTERTAINMENT GROUP Starwood Property Trust Inc Tiptree Inc WP Carey Inc Scorpio Tankers Inc Neutral PreferredCIM 8 PERP PFD 03/30/24 Seaspan Corp Scorpio Tankers Inc Neutral Closed End FundsDeutsche High Income Opportunities Fund Inc Eaton Vance Limited Duration Income Fund PennantPark Floating Rate Capital Ltd PIMCO Dynamic Credit and Mortgage Income Fund Prudential Global Short Duration High Yield Fund Inc

As of 12/31/17List of Holdings (cont’d)

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Review of CCMNX’s Proxy Voting Guidelines and Proxy Votes

As an active investor with a strong concern for corporate responsibility, we support communication with company management about organizational practices we would like improved. We engage in active, ongoing dialogue with Fund shareholders to ensure that the views we express to corporations reflect our opinion and theirs as well.

We continue to withhold votes from all Board nominees for corporate boards that have fewer than two female directors. This conflicts with our views on adequate women/minority representation on corporate boards as outlined below. Based on our beliefs and client feedback, our current proxy voting plans are included below.

We support:

• Corporate boards’ that include adequate representation for independent, women and minority directors.

• Corporate disclosure, reporting, and transparency resolutions.• “Say on pay” and similar efforts to give a company’s owners a voice in

management compensation.• Company benefits and/or compensation plans for all regardless of gender,

race, age or sexual orientation.• Policies that promote the voting power of the share classes offered to the

public.• Companies that recognize the carbon intensity of their businesses.• Safe working conditions for all a company’s workers, suppliers, and

contractors regardless of global location.

In 2017, there were a total of 41 proxy votes at companies where the Fund was a shareholder. We were able to vote with management except for:

• 15 votes withheld for Board of Directors with fewer than 2 female board members

• 14 votes for shareholder resolutions (against management) on human rights issues and disclosure issues

As an active investor with a strong concern for corporate responsibility, we support communication with company management about organiza-tional practices we would like improved.

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Community Capital Management, Inc. is an investment advisor registered with the Securities and Exchange Commission under the Investment Advisers Act of 1940.

Carefully consider the Fund’s investment objectives, risks, charges, and expenses before investing. This and other information can be found in the Fund’s prospectus which can be obtained by calling 866-202-3573. Please read it carefully before investing. The CCM Alternative Income Fund is distributed by SEI Investments Distribution Co., which is not affiliated with Community Capital Management.

Investing involves risk, including possible loss of principal. Bonds and bond funds will decrease 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.

COMMUNITY CAPITAL MANAGEMENT

Impact Investing Since 1999