Community Capital Management launches liquid alternative mutual fund
Community Capital Management has launched a new open ended, multi-strategy mutual fund – the CCM Alternative Income Fund – combining absolute-return and income-producing strategies.
"CCMNX was specifically created for investors seeking an income source that actively hedges equity and fixed income market exposures," says David Sand, chief investment strategist at CCM and a portfolio manager of CCMNX. "While researching the space, we noticed plenty of long only bond, dividend and balanced funds that do not hedge; however, the selection of absolute return, income oriented funds was much smaller."
CCMNX was launched in May 2013 in an effort to meet conservative yield conscious investors' demands. As of 17 March, the 30-day SEC Yield for CCMNX was 3.80 per cent and as of 31 December 2013 its correlation to the S&P 500 and Barclays Aggregate Bond Index was low at 0.01 and negative 0.09, respectively.
"We believe CCMNX should be considered by risk-averse investors who seek a source of income and diversification (or low beta and low correlation) to equity and fixed income markets," says Andrew Cowen, managing member, Badge Investment Partners, sub-adviser to CCMNX. "The fund is designed to be agnostic to interest rate or equity market movements and should be considered as a part of investors' strategic asset allocation."
In keeping with CCM's expertise in impact and environmental, social, and governance (ESG) investing, CCMNX also incorporates these features and publishes a quarterly ESG report for investors. For long positions in equity securities, CCM examines holdings quarterly for their standing in areas of corporate ESG risk and performance. For fixed income, a significant portion of the fund's holdings provide financing for a variety of projects meeting ESG criteria.
CCMNX is the second fund managed by CCM. It is currently available on a variety of platforms including Charles Schwab, NFS/Fidelity, Envestnet, Pershing, FolioFN, and TD Ameritrade. The minimum investment is USD100,000, which may be waived in certain circumstances.
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