SCREENING: Generally, social investors seek to own profitable companies that make positive contributions to society. “Buy lists” include enterprises with outstanding employer-employee relations, excellent environmental practices, products that are safe and useful, and operations that respect human rights around the world. Conversely, they avoid investing in companies whose products and business practices are harmful. In addition, social screening also broadens the knowledge an investor has about a company or fund. SHAREHOLDER ADVOCACY: Proxy resolutions on social issues are generally aimed at influencing corporate behavior toward a more responsible level of corporate citizenship, steering management toward action that enhances the well-being of all the company’s stakeholders, and improving financial performance over time. COMMUNITY INVESTING: Community investors make it possible for local organizations to create jobs, provide financial services to low-income and under-served individuals and groups, and supply capital for small businesses, affordable housing, and community services such as childcare.
Note: Total Screening is $2,143 billion (&quot;Screening Only&quot; + &quot;Screening and Shareholder&quot;) and Total Shareholder Advocacy is $448 billion (&quot;Shareholder Advocacy Only&quot; + &quot;Screening and Shareholder&quot;) The total amount of the “pie,” $ 2.16 trillion, is managed by major investing institutions, including pension funds, mutual fund families, foundations, religious organizations and community development financial institutions. This accounts for nearly 11 percent of the total $19.2 trillion in investment assets under professional management in the United States, according to the 2003 Nelson’s Directory of Investment Managers. Screening Only = $1702 billion Shareholder Advocacy Only = $7 billion Screening + Shareholder = $441 billion Community Investing = $14 billion
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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.
<ul><li>Screening: The practice of including or excluding publicly traded securities from investment portfolios or mutual funds based on social and/or environmental criteria. </li></ul><ul><li>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. </li></ul><ul><li>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. </li></ul>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 <ul><li>Pension plans (large market public and private) </li></ul><ul><li>Foundations, endowments and community trusts </li></ul><ul><li>Corporations that want to address affordable housing needs </li></ul><ul><li>Financial institutions subject to the Community Reinvestment Act (CRA) </li></ul><ul><li>Investors in search of a high-quality, good-performing fixed income investment </li></ul><ul><li>Accredited Investors seeking a mission-related investment </li></ul>
ACS Community Investment Fund: Fund Objectives <ul><li>Invest in geographically specific, private placement debt securities located in the portions of the United States designated by Fund Investors </li></ul><ul><li>Generate a competitive return relative to higher balance mortgage investments </li></ul><ul><li>Only invest in AAA/agency credit quality debt securities targeted to support community development activities </li></ul><ul><ul><li>Single-family affordable housing </li></ul></ul><ul><ul><li>Multi-family affordable housing </li></ul></ul><ul><ul><li>Small business lending </li></ul></ul><ul><ul><li>Job creation </li></ul></ul><ul><ul><li>Community Health Centers </li></ul></ul>
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
Disclosure/Risk Factors <ul><li>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. </li></ul>
<ul><li>Contact us today for further information: </li></ul><ul><ul><ul><li>Ronald A. Homer David F. Sand </li></ul></ul></ul><ul><ul><ul><li>CEO President & CIO </li></ul></ul></ul><ul><ul><ul><li>[email_address] [email_address] </li></ul></ul></ul><ul><ul><ul><li>X 224 x 221 </li></ul></ul></ul><ul><ul><ul><li>Access Capital Strategies LLC </li></ul></ul></ul><ul><ul><ul><li>419 Boylston Street, Suite 501 </li></ul></ul></ul><ul><ul><ul><li>Boston, MA 02116 Tel: (617) 236-7274 </li></ul></ul></ul>