ITEM 1: DESCRIPTION OF BUSINESS
Access Capital Strategies Community Investment Fund, Inc. (the "Fund") completed its organization and registration process in early 1998 and commenced operations on June 23, 1998. This filing is the Form 10-K Annual Report for the Fund for fiscal year 2001 covering the period from June 1, 2000 to May 31, 2001.
The Fund is a non-diversified closed-end management company electing status as a business development company under the Investment Company Act (the "1940 Act").
The Fund's investment objective is to invest in geographically specific private placement debt securities located in portions of the United States designated by Fund investors. The Fund invests primarily in private placement debt securities specifically designed to support underlying community development activities targeted to low- and moderate-income individuals such as affordable housing, education, small business lending, and job-creating activities in areas of the United States designated by Fund investors.
In addition to their geographic specificity, Fund investments must carry a AAA credit rating or carry credit enhancement from a AAA-rated credit enhancer or be issued or guaranteed by the U.S. Government, government agencies or government-sponsored enterprises. The Fund expects (but cannot guarantee) that all investments made by the Fund will be considered eligible for regulatory credit under the Community Reinvestment Act ("CRA").
Each of Access Capital Strategies LLC ("Access"), the Fund's manager, and Merrill Lynch Investment Managers, L.P. ("MLIM"), the Fund's sub-manager, is a registered investment adviser under the Investment Advisers Act of 1940 ("Investment Advisors Act").
As of May 31,2001, the Federal National Mortgage Association ("Fannie Mae"), through its affiliate Fannie Mae American Communities Fund, held a 32% equity interest in Access. At May 31, 2001, the Fund held $105,247,017 in Fannie Mae mortgage-backed securities, representing 86.2% of the Fund's net assets.
The Fund competes with a range of narrowly defined CRA qualified investments including a few funds that operate on a regional and national basis. However, to the knowledge of the Fund, there is no other CRA qualified fund in existence that offers the same risk parameters as the Fund. The Fund competes most directly with brokers who sell AAA credit quality CRA qualified securities directly to banking institutions.
The Fund ended the fiscal year on May 31, 2001 with $122,187,672 in net assets and 1,225.318 shares of common stock ("Shares") owned by twenty-six Fund investors. The net asset value per Share as of May 31, 2001 was $99,719.15. The Fund's total return for the fiscal year ended May 31, 2001 was 12.12%.
More information on the Fund is contained in the attached Private Offering Memorandum and 2001 audited Annual Report.
ITEM 2:
Item 2. Changes in Securities None
Item 3.
Item 3. Defaults Upon Senior Securities None.
Item 4.
Item 4. Submission of Matters to a Vote of Security Holders None.
Item 5.
Item 5. Other Information None.
Item 6.
Item 6. Exhibits and Reports The following Exhibits are filed as part of this Report:
(a) (1) N/A (2) None (3) (i) Articles of Incorporation are incorporated by reference from an exhibit filed on Form 10-Q for the period ended August 31, 1998 (ii) By-Laws are incorporated by reference from an exhibit filed on Form 10-Q for the period ended August 31, 1998 (4) N/A (5) N/A (8) N/A (9) None (10) (i) Private Offering Memorandum is filed herewith (iii)(A)Management Agreement is incorporated by reference from an exhibit filed on Form 10-Q for the period ended August 31, 1998 (11) N/A (12) N/A (13) N/A (15) N/A (16) None (17) N/A (18) None (19) N/A (20) N/A (21) None (22) None (23) Consent of Independent Public Accountants is filed herewith (24) None (25) N/A (26) N/A (27) N/A (b) Reports on Form 8-K None.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Section 13 or 15(d) of report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: 8/28/01 Access Capital Strategies Community Investment Fund, Inc.
*/s/ DAVID.F. SAND ----------------- David F. Sand, Chief Executive Officer and Principal Financial Officer
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
Date: 8/28/01 */s/ KEVIN J. MULVANEY ---------------------- Kevin J. Mulvaney, Director
Date: 8/28/01 */s/ PETER BLAMPIED ------------------- Peter Blampied, Director
Date: 8/28/01 */s/ RONALD A. HOMER -------------------- Ronald A. Homer, Chairman of the Board
*/s/ TERRY K. GLENN Date: 8/28/01 --------------------------------------- Terry K. Glenn, Director
*Executed on behalf of the indicated person by the undersigned, pursuant to power of attorney attached hereto.
By: /s/ ALYSSA ALBERTELLI ----------------------- Alyssa Albertelli Attorney-In-Fact
POWER OF ATTORNEY -----------------
David F. Sand, whose signature appears below, does hereby constitute and appoint Martin E. Lybecker and Alyssa Albertelli, each individually, his true and lawful attorneys and agents, with power of substitution or resubstitution, to do any and all acts and things and to execute any and all instruments which said attorneys and agents, each individually, may deem necessary or advisable or which may be required to enable Access Capital Strategies Community Investment Fund, Inc. ("the "Fund"), to comply with the Investment Company Act of 1940, as amended, the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, ("Acts"), and any rules, regulations or requirements of the Securities and Exchange Commission in respect thereof and any state filings, including specifically, but without limiting the generality of the foregoing, the power and authority to sign in the name and on behalf of the undersigned as a director and/or officer of the Fund any and all such documents filed with the Securities and Exchange Commission under said Acts, and any and all such documents filed with the state authorities, and any other instruments or documents related thereto, and the undersigned does hereby ratify and confirm all that said attorneys and agents, or either of them, shall do or cause to be done by virtue thereof.
Dated: 7/10/98 /s/ DAVID F. SAND ------- -----------------
POWER OF ATTORNEY -----------------
Ronald S. Homer, whose signature appears below, does hereby constitute and appoint Martin E. Lybecker and Alyssa Albertelli, each individually, his true and lawful attorneys and agents, with power of substitution or resubstitution, to do any and all acts and things and to execute any and all instruments which said attorneys and agents, each individually, may deem necessary or advisable or which may be required to enable Access Capital Strategies Community Investment Fund, Inc. ("the "Fund"), to comply with the Investment Company Act of 1940, as amended, the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, ("Acts"), and any rules, regulations or requirements of the Securities and Exchange Commission in respect thereof and any state filings, including specifically, but without limiting the generality of the foregoing, the power and authority to sign in the name and on behalf of the undersigned as a director and/or officer of the Fund any and all such documents filed with the Securities and Exchange Commission under said Acts, and any and all such documents filed with the state authorities, and any other instruments or documents related thereto, and the undersigned does hereby ratify and confirm all that said attorneys and agents, or either of them, shall do or cause to be done by virtue thereof.
Dated: 7/10/98 /s/ RONALD S. HOMER ------- -------------------
POWER OF ATTORNEY -----------------
Peter J. Blampied, whose signature appears below, does hereby constitute and appoint Martin E. Lybecker and Alyssa Albertelli, each individually, his true and lawful attorneys and agents, with power of substitution or resubstitution, to do any and all acts and things and to execute any and all instruments which said attorneys and agents, each individually, may deem necessary or advisable or which may be required to enable Access Capital Strategies Community Investment Fund, Inc. ("the "Fund"), to comply with the Investment Company Act of 1940, as amended, the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, ("Acts"), and any rules, regulations or requirements of the Securities and Exchange Commission in respect thereof and any state filings, including specifically, but without limiting the generality of the foregoing, the power and authority to sign in the name and on behalf of the undersigned as a director and/or officer of the Fund any and all such documents filed with the Securities and Exchange Commission under said Acts, and any and all such documents filed with the state authorities, and any other instruments or documents related thereto, and the undersigned does hereby ratify and confirm all that said attorneys and agents, or either of them, shall do or cause to be done by virtue thereof.
Dated: 7/20/98 /s/ PETER J. BLAMPIED ------- ---------------------
POWER OF ATTORNEY -----------------
Kevin J. Mulvaney, whose signature appears below, does hereby constitute and appoint Martin E. Lybecker and Alyssa Albertelli, each individually, his true and lawful attorneys and agents, with power of substitution or resubstitution, to do any and all acts and things and to execute any and all instruments which said attorneys and agents, each individually, may deem necessary or advisable or which may be required to enable Access Capital Strategies Community Investment Fund, Inc. ("the "Fund"), to comply with the Investment Company Act of 1940, as amended, the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, ("Acts"), and any rules, regulations or requirements of the Securities and Exchange Commission in respect thereof and any state filings, including specifically, but without limiting the generality of the foregoing, the power and authority to sign in the name and on behalf of the undersigned as a director and/or officer of the Fund any and all such documents filed with the Securities and Exchange Commission under said Acts, and any and all such documents filed with the state authorities, and any other instruments or documents related thereto, and the undersigned does hereby ratify and confirm all that said attorneys and agents, or either of them, shall do or cause to be done by virtue thereof.
Dated: 7/17/98 /s/ KEVIN J. MULVANEY ------- ---------------------
POWER OF ATTORNEY -----------------
Terry K. Glenn, whose signature appears below, does hereby constitute and appoint Martin E. Lybecker and Alyssa Albertelli, each individually, his true and lawful attorneys and agents, with power of substitution or resubstitution, to do any and all acts and things and to execute any and all instruments which said attorneys and agents, each individually, may deem necessary or advisable or which may be required to enable Access Capital Strategies Community Investment Fund, Inc. ("the "Fund"), to comply with the Investment Company Act of 1940, as amended, the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, ("Acts"), and any rules, regulations or requirements of the Securities and Exchange Commission in respect thereof and any state filings, including specifically, but without limiting the generality of the foregoing, the power and authority to sign in the name and on behalf of the undersigned as a director and/or officer of the Fund any and all such documents filed with the Securities and Exchange Commission under said Acts, and any and all such documents filed with the state authorities, and any other instruments or documents related thereto, and the undersigned does hereby ratify and confirm all that said attorneys and agents, or either of them, shall do or cause to be done by virtue thereof.
Dated: August 28, 2001 /s/ Terry K. Glenn ------------------- Terry K. Glenn