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Access Capital Strategies Community Investment Fund, Inc. A Vehicle for Community Investments Managed by Access Capital Strategies & Merrill Lynch Investment Managers October 2005 This presentation is approved only for qualified accredited clients eligible to invest in Access Capital Strategies Community Investment Fund, Inc. (“Fund”) The Fund is a non-diversified closed-end management company electing status as a business development company under the Investment Company Act of 1940. The Fund is a a private placement. This information is not an offer of the Fund, and is not a complete description of the Fund and the risks associated with an investment. The offering of the Fund can only be made through the current version of the Fund’s Private Offering Memorandum, which fully describes the Fund, including investment strategies, risk factors, charges and expenses and must accompany this presentation.
Screening: The practice of including or excluding publicly traded securities from investment portfolios or mutual funds based on social and/or environmental criteria.
Shareholder Advocacy: Actions socially aware investors take in the role as owners of corporations, including dialoguing with companies on issues of concern, as well as filing and voting proxy resolutions.
Community Investing: The flow of capital from investors to communities that are underserved by traditional financial services. It provides access to credit, equity, capital, and basic banking products.
Taken from Social Investment Forum’s Report on Responsible Investing Trends in the U.S. 2003 Three Strategies of Socially Responsible Investing
Taken from Social Investment Forum’s Report on Responsible Investing Trends in the U.S. 2003 Socially Responsible Investing in the U.S. $2.16 trillion in 2003
ACS Community Investment Fund: Eligible Investors
Pension plans (large market public and private)
Foundations, endowments and community trusts
Corporations that want to address affordable housing needs
Financial institutions subject to the Community Reinvestment Act (CRA)
Investors in search of a high-quality, good-performing fixed income investment
Accredited Investors seeking a mission-related investment
ACS Community Investment Fund: Fund Objectives
Invest in geographically specific, private placement debt securities located in the portions of the United States designated by Fund Investors
Generate a competitive return relative to higher balance mortgage investments
Only invest in AAA/agency credit quality debt securities targeted to support community development activities
Single-family affordable housing
Multi-family affordable housing
Small business lending
Community Health Centers
ACS Community Investment Fund: Fund Structure ACS Portfolio Investor A Investor C Geographically-diverse returns Geographically Specific Commitment Example Investor B $5 million $5 million $25 million $25 million $10 million $10 million
Fund Guarantors @ 31 August 2005 Allocations subject to change. Guarantors of Securities Owned
Gross of Fees as of 30 June 2005 Quarter-by-Quarter Performance Q1 Q2 Q3 Q4 Year 2000 1.80 2.23 3.18 4.51 12.25 2001 2.04 0.69 5.12 -0.12 7.87 2002 1.01 3.49 2.78 1.88 9.46 2003 1.44 1.33 -0.08 0.72 3.63 2004 2.32 -1.51 3.11 1.33 5.25 2005 -0.09 2.74 * Benchmark consists of 80% of the Merrill Lynch Mortgages, FHLMC & FNMA 30 year index (MF30) and 20% of the Merrill Lynch U.S. Treasury 1-10 year index (G502). Inception 6/30/1998. Source: Merrill Lynch Past performance is not a guarantee of future results Data gross of fees. Annualized Returns (period ending 06/30/05) (%) 1 Yr 3 Yrs 5 Yrs Access Capital 7.21 5.15 7.05 Benchmark* 5.70 4.83 6.89 ACS Community Investment Fund: Quarterly Performance
Investment in the Fund involve risks, including, but not limited to, the following: limited transferability of Shares; the illiquidity of the Fund’s portfolio investments; the effects of leveraging the Fund’s portfolio; concentration in the affordable housing market and related mortgage backed securities (“MBSs”); competition for investments; interest rate risk; risks relating to regulation; risks relating to tax requirements to obtain and maintain RIC status for the Fund under the Code; conflicts of interest; and use of derivatives. In addition, because the Shares will not be registered under the Securities Laws and there will be no public market for the Shares, an investment in the Fund is suitable only for investors who understand the limitations placed upon their investment and have carefully reviewed the Private Offering Memorandum.