IMPACTT H E

I N V E S T O R

A Publication of Community Capital Management, Inc.

The Jon Bon Jovi (JBJ) Soul Foundation existsto combat issues that force families and individ-uals into economic despair. Through the fund-ing and creation of programs and partnership,the Foundation supports innovative communityefforts to break the cycle of poverty and home-lessness. In the following Q&A, the JBJ SoulFoundation shares with us why they startedmaking impact investments.

1.Why did the JBJ Soul Foundationdecide to make impact investments?

A few years ago, the Foundation learnedabout impact investing as a way to financeredevelopment. At the time, the Founda-tion was making an effort to help those af-fected by Superstorm Sandy and wasdeeply concerned for New Jersey’s recov-ery from the hurricane, knowing thatfunds would be depleted faster than the

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We are excited to present the 2017 spring issue of The Impact Investor. In thisedition, we focus on disaster recovery through impact investments. Included is aQ&A with the Jon Bon Jovi Soul Foundation who has donated millions to

families impacted by disasters such as Hurricane Sandy and is now also using investments tomake a positive impact. We are also excited to spotlight our 2016 Annual Impact Report alongwith a story on recent visits to several of the affordable housing properties and/or small busi-nesses our bonds are financing. The last two pages spotlight three of CCM’s fixed income im-pact investments focused on disaster recovery along with our spring conference schedule.

actual recovery. The sustainable aspect toimpact investing was equally interestingand appealing. That’s how Impact NewJersey was created.

2.Can you share what types of impactinvestments the Foundation has madeand how you are selecting them?

The Foundation works with a privatewealth advisor, Maria Tanzola, at UBS Pri-vate Wealth Management, on the selectionof its impact investments. To date, theFoundation has made two fixed incomeinvestments (the CRA Qualified Invest-ment Fund and the Calvert Notes) andone equity investment (the UBS GlobalSustainable Equity Strategy).

3.What type of impact is created as aresult of these investments?

Investment funds are

Q&A with the Jon Bon Jovi Soul Foundation

CCM’s 2016 ANNUALIMPACT REPORTWe recently published our 2016 AnnualImpact Report (now in its fourth edition).Highlights of the report include: impact in-vesting outcomes and emerging themes in2016, types of bonds that have positive en-vironmental and social impacts, and how tocustomize market-rate fixed income impact investment portfolios. The reportalso includes details on our firm’s commit-ment to the community and environment.

To download a copy of the report and to lis-ten to a webinar discussing highlights fromthe report, please visit www.ccminvests.com.

VISIT WWW.CCMINVESTS.COMTO:

• Download CCM’s 2016 Annual Impact Report• Watch a webinar discussing highlights from the 2016 Annual

Impact Report• Obtain quarterly fact sheets and commentary

continued on page 2

CCM On-Site VisitsIn the last year, we have visited several of theproperties and small businesses across the countrythat our bonds are helping to finance. This hasbeen a wonderful and rewarding experience. Wehave met residents, small business owners, prop-erty managers, among others, and have been ableto see first-hand the many progressive initiativestaking place in their communities. Highlights ofthree recent visits are included below.

Elizabeth Seton PediatricCenter: Yonkers, NYThe Center provides specialized clinicaland rehabilitative services to medicallycomplex children with multiple physicaland neurological conditions and disabili-ties. In 2012, the Center relocated fromManhattan to a brand new, state-of-the-artfacility in Yonkers. The 165,000 squarefoot complex serves 137 of New YorkState’s most medically complex children.The Center is also committed to the en-vironment through its green initiative andbuilding design. continued on page 2

CCM On-Site Visits continued from page 1

On-Site VisitDavid Sand, chief investment strategist, vis-ited the property and was fortunate to goon a tour and was genuinely impressed withthe Center, its level of care for the children,and its commitment to the environment.He learned about the many services offeredincluding clinical, rehabilitation, palliativecare, and creative arts therapies. One of thecreative arts therapies is music which pro-vides an avenue for children to communi-cate freely and uniquely and to connectwith others, building self-esteem and opti-mizing their strengths.

Congress Building: Miami, FLThe Congress Building is an historic BeauxArts high-rise community in the heart ofdowntown with 128 units for low-income

tenants. It was added to the National Reg-ister of Historic Places in 1985. Originallybuilt in 1923 as office space, the building wasrestored and converted to affordable apart-ments in 1998. On-site resident amenitiesinclude financial counseling, educationalcourses, and job training. The property is lo-cated next to the Miami-Dade Metromover.

On-Site VisitJamie Horwitz, chief marketing officer, andGabby Bastos, marketing assistant, visited theCongress Building and were given a tour ofthe building by the property manager whomentioned that 100% of the units werebeing occupied by low-income tenants. Atthe visit, Jamie and Gabby met with resi-dents and saw the different types of apart-ments in addition to the residentcommunity room and other onsite ameni-ties. The property is conveniently locatednext to the Miami-Dade Metromover, afree, electrically-powered system connect-ing points in downtown Miami.

VetPowered: San Diego, CAVetPowered is a small business providingstate-of-the-art manufacturing, welding/fabrication, machinery repair, and cus-tomized training for veterans. Founded in2009, VetPowered services the intersectionof a highly qualified Veteran manufacturingworkforce with industry needs. Everyproduct made and serviced by VetPowered

supports Workshops for Warriors (WFW), a501(c)(3) non-profit, dedicated to training,certifying, and placing veterans andwounded warriors into advanced manufac-turing careers.

On-Site VisitAndy Kaufman, senior portfolio manager,recently went on a tour of the property thathouses VetPowered and WFW. He was ableto meet the instructors and several of thestudents currently enrolled in the weldingand machinery certifications. The business islooking to expand to a 3-story building aswell as create another building for moretraining and for student housing. All of thestudents are within six months of being dis-charged or have been honorably discharged.One of the students told Andy that it is anamazing program helping veterans transitionback into civilian life.

The securities identified and described herein are for illustrative purposes only and their selection was based upon non-performance criteria, such as thesecurity’s social and/or environmental attributes.

independent review of need in Sandy-af-fected areas and identified possible philan-thropic and ‘impact investment’ solutions.Additionally, finding advisors, like Maria,that specialize in impact investments is ex-tremely important. The Foundation hopesthat Impact New Jersey will influence otherinvestors to look at a variety of ways to pos-itively advance a cause or mission. Bothgrants and impact capital are powerful driv-ers of social change.

IMPACT INVESTOR I SPRING 20172

directed to key partners working in tar-geted areas: affordable housing, mortgagerelief, and local, economic development.Impact New Jersey pairs place-based in-vestments with a fixed rate of returnwith market-rate investments. “Peoplewho want to do good with their moneycan see positive impact in communitiesand help with long-term recovery whileearning money,” says Bon Jovi of the col-laboration.

4.What resources helped the Foundationin its commitment to impact investing?What does the Foundation hope it hasaccomplished with Impact New Jersey?

The Foundation is always excited to sharewith others how and why it began to makeimpact investments. Education was a keycomponent. The Foundation sought theexpertise and experience from The Centerfor High Impact Philanthropy at The Uni-versity of Pennsylvania which conducted an

Q&A with the Jon Bon Jovi Soul Foundation continued from page 1

David Sand, chief investment strategist, vis-iting the Elizabeth Seton Pediatric Centerin Yonkers, NY. The Center provides spe-cialized clinical rehabilitative services tomedically complex children.

Andy Kaufman, senior portfolio manager,visiting VetPowered in San Diego, CA.The veterans at VetPowered are dedicated tobringing advanced manufacturing back toAmerica.

SPRING 2017 I IMPACT INVESTOR 3

to damage from earthquakes.• Increase system reliability to deliver waterby providing the redundancy needed toaccommodate outages.

• Provide improvements related to watersupply/drought protection.

• Enhance sustainability through improve-ments that optimize protection of the nat-ural and human environment.

Salvation ArmyThe Salvation Army is an international reli-gious and charitable organization which op-erates in the United States as four divisions:Adult Rehabilitation Centers, Care GroupServices, Silvercrest Residences, and Emer-gency Disaster Services.

For almost 100 years, the Salvation Armydisaster response teams, comprised of com-missioned officers, trained employees andvolunteers, have provided services at disastersites throughout the world. The SalvationArmy relief staff and volunteers have pro-vided response and recovery services, as wellas provided food and shelter, basic com-modities, reconstruction, counseling, and fi-nancial assistance at disaster sites to servethose in need.

Hurricane. Harlem River Point Northmeets the Enterprise Green Communitiescriteria as well as the New York State En-ergy Research & Development Author-ity’s efficiency standards.

San Francisco Water SystemImprovement Program(WSIP)The WSIP is a $4.8 billion dollar program toprovide reliable, affordable, and high qualitydrinking water in an environmentally sus-tainable manner to 2.6 million people in theSan Francisco Bay Area. It is one of the largestwater infrastructure programs in the nationand the largest infrastructure program everundertaken by the City of San Francisco. Bystrengthening water systems to endure po-tential damage from earthquakes and/orshortages from droughts, the WSIP serves animportant role in disaster prevention.

Its objectives include:• Improve the system to provide high-quality water that reliably meets all cur-rent and foreseeable local, state, andfederal requirements.

• Reduce vulnerability of the water system

One of CCM’s impact investment themes isdisaster recovery. As highlighted and describedin our 2016 annual impact report, disaster re-covery includes: supporting various communitydevelopment activities in federally-designateddisaster areas and disaster-prone areas to enablethe recovery, prevention, or continuation of dailylife associated with natural or human-induceddisasters. Included on this page are three exam-ples of bonds helping disaster recovery efforts.

SPOTLIGHT ON CCM FIXED INCOME IMPACT INVESTMENTS SUPPORTING DISASTER RECOVERY RELIEF

The securities identified and described herein are for illustrative purposes only and their selection was based upon non-performance criteria, such as thesecurity’s social and/or environmental attributes.

Hurricane Sandy (unofficially referred to as “Superstorm Sandy”) was one of the deadliest and mostdestructive hurricanes of the 2012 Atlantic hurricane season. The track of Sandy resulted in a worse-case scenario for storm surge for coastal regions from New Jersey north to Connecticut including NewYork City and Long Island.

David Sand, chief investment strategist, vis-iting Harlem River Point North in Harlem,NY. The property is one of many City-subsidized affordable housing developmentsfor income-eligible New Yorkers displacedfrom their homes by Hurricane Sandy.

Harlem River Point NorthHarlem River Point North is an affordablerental property with 173 units located in amoderate-income census tract in Harlem,New York. Of the 173 units, 137 are re-stricted to residents with incomes at orbelow 60% of area median income and 35units are restricted to residents with incomesat or below 40% of area median income.

The building gives preference for 43 unitsto qualified households displaced by Hur-ricane Sandy. The property is one ofmany City-subsidized affordable housingdevelopments for income-eligible NewYorkers displaced from their homes by the

Spring 2017 Conferences:CCM will be at the following conferencesthis spring/summer:

Confluence PhilanthropyMarch 14-16, New Orleans

Women Presidents’ OrganizationMay 4-6, Orlando

US SIF Annual ConferenceMay 10-12, Chicago

ICCRJune 12-16, Grand Rapids

Community Capital Management, Inc. is an investment adviser registered with the Securities and Exchange Commission under the Investment Advisers Act of1940. Past performance does not guarantee future results. Market conditions can vary widely over time and can result in a loss of portfolio value.

In an effort to be more environmentally friendly and reduce the amount of paper usedfor marketing materials, we are no longer mailing copies of our newsletter. We will alsobe printing the newsletter in much smaller quantities. If you would like a hard copy,please contact Jamie Horwitz at jhorwitz@ccminvests.com.

Community Capital Management

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For the Period: 3/15/2016 to 3/9/2017

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