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THE COMMUNITY REINVESTMENT ACT
QUALIFIED INVESTMENT FUND
SCHEDULE OF INVESTMENTS (Unaudited) November 30, 1999
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Principal Value
--------- -----
AGENCY OBLIGATIONS -- 72.17%
<S> <C> <C>
Federal Home Loan Mortgage Corp., Pool #C32453, 7.50%, 11/01/29 .... 1,659,185 $ 1,661,000
Federal National Mortgage Association, Pool #381995 7.40%, 10/01/17 1,000,000 993,201
------------
Total Agency Obligations (Cost $2,679,693) ......................... 2,654,201
------------
MUNICIPAL BONDS -- 24.64%
Utica NY Urban Renewal Agency Note Series 1992-A 7.38%, 08/01/05 .. 225,000 226,809
Utica NY Urban Renewal Agency Note Series 1992-A 7.72%, 08/01/09 .. 225,000 226,647
Utica NY Urban Renewal Agency Note Series 1992-A 7.90%, 08/01/12 .. 450,000 452,668
------------
Total Municipal Bonds (Cost $915,464) .............................. 906,124
------------
REPURCHASE AGREEMENTS --1.43%
Merril Master Repo, 4.28%, dated 11/30/99, due 12/01/99, repurchase
price $52,773 (collateralized by U.S. Treasury Note, 5.125%, 08/31/00,
market value $52,773) (Cost $52,767) .................................. 52,767 52,767
------------
TOTAL INVESTMENTS (COST $3,647,924) -- 98.24% ......................... 3,613,092
OTHER ASSETS IN EXCESS OF LIABILITIES -- 1.76% ....................... 64,805
------------
NET ASSETS -- 100% .................................................... $ 3,677,897
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THE COMMUNITY REINVESTMENT ACT
QUALIFIED INVESTMENT FUND
STATEMENT OF ASSETS AND LIABILITIES (Unaudited) November 30, 1999
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ASSETS:
Investments, at market (identified cost $3,647,924) $ 3,613,092
Receivables:
Interest 39,106
Due from advisor 58,841
------------
Total assets 3,711,039
------------
LIABILITIES:
Payables:
Accrued distribution fees 1,005
Distributions payable 10,586
Accrued expenses 21,551
------------
Total liabilities 33,142
------------
NET ASSETS $ 3,677,897
============
NET ASSETS CONSIST OF:
Common stock $ 3,723,748
Accumulated realized loss on investments (11,019)
Net unrealized loss on investments (34,832)
------------
Net Assets (Unlimited shares of $0.001 par value
authorized; 370,234 shares outstanding) $ 3,677,897
============
Net Asset Value and offering price per share $ 9.93
============
Redemption price per share (9.93 * .99) $ 9.83
============
See notes to financial statements.
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THE COMMUNITY REINVESTMENT ACT
QUALIFIED INVESTMENT FUND
STATEMENT OF OPERATIONS (Unaudited)
FOR THE PERIOD ENDED NOVEMBER 30, 1999*
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INVESTMENT INCOME:
Interest $ 24,699
------------
Total investment income 24,699
------------
EXPENSES:
Investment advisory fees 2,430
Accounting and administration fees 12,705
Transfer agency fees 2,540
Professional fees 7,235
Custodian fees 763
Trustee fees 34,918
Printing expense 2,844
Other 1,270
Distribution fees 1,005
------------
Total expenses before fee waivers 65,710
------------
Fees waived and expenses reimbursed by Advisor (61,271)
------------
Total net expenses 4,439
------------
Net investment income 20,260
------------
REALIZED GAIN ON INVESTMENTS:
Net realized loss on investments (11,019)
Net change in unrealized depreciation on investments (34,832)
------------
(45,851)
------------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $ (25,591)
============
* The investment portfolio commenced operations on August 30, 1999.
See notes to financial statements.
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THE COMMUNITY REINVESTMENT ACT
QUALIFIED INVESTMENT FUND
STATEMENTS OF CHANGES IN NET ASSETS (Unaudited)
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For the Period
Ended
November 30, 1999*
------------------
INCREASE IN NET ASSETS
Operations:
Net investment income $ 20,260
Net realized loss on investments (11,019)
Net change in unrealized depreciation on investments (34,832)
------------
Net decrease in net assets resulting from operations (25,591)
------------
Distributions to shareholders from:
Net investment income (20,260)
------------
Increase in net assets from Fund share transactions(Note 2) 3,623,748
------------
Increase in net assets 3,598,157
NET ASSETS:
Beginning of period 100,000
------------
End of period $ 3,677,897
============
* The investment portfolio commenced operations on August 30, 1999.
See notes to financial statements.
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THE COMMUNITY REINVESTMENT ACT
QUALIFIED INVESTMENT FUND
FINANCIAL HIGHLIGHTS (UNAUDITED)
Per Share Data (For a Share Outstanding
from August 30, 1999 through November 30, 1999)
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For the Period
Ended
November 30, 1999*
-----------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.00
------------
INVESTMENT OPERATIONS:
Net investment income 0.05
Net realized and unrealized loss on
investments (0.07)
------------
Total from investment operations (0.02)
------------
Distributions:
From net investment income (0.05)
NET ASSET VALUE, END OF PERIOD $ 9.93
============
TOTAL RETURN (0.15%)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in 000's) $ 3,678
Ratio of expenses to average net assets:
Before expense reimbursement 15.83% 1
After expense reimbursement 1.00% 1
Ratio of net investment income (loss)
to average net assets:
Before expense reimbursement (8.86%)1
After expense reimbursement 5.98% 1
Portfolio turnover rate 123.01%
* The investment portfolio commenced operations on August 30, 1999.
See notes to financial statements.
<PAGE>
THE COMMUNITY REINVESTMENT ACT QUALIFIED INVESTMENT FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) NOVEMBER 30, 1999
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NOTE 1 - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
The Community Reinvestment Act Qualified Investment Fund (the "Fund") was
organized as a Delaware business trust on January 15, 1999. The Fund is
registered under the Investment Company Act of 1940 (the "Act"), as amended, as
an open-end, management investment company. The Fund is a non-diversified fund.
The Fund is organized to offer a single class of shares of beneficial interest.
The initial capitalization of the Fund, $100,000, was provided on June 3, 1999
by CRAFund Advisors, Inc.,(the "Advisor"). The Fund commenced investment
operations on August 30, 1999.
The costs incurred in connection with the organization, initial
registration and public offering of shares have been paid by CRAFund Advisors,
Inc.(the "Advisor"). Accordingly, no organizational costs have been recorded by
the Fund.
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
policies are in conformity with generally accepted accounting principles for
investment companies.
SECURITY VALUATION. Investments in securities traded on a national securities
exchange are valued at the last reported sales price. Unlisted securities,
listed securities in which there were no sales, or securities traded
over-the-counter, are valued at the mean of the closing bid and ask prices. When
market quotations are not readily available, securities and other assets are
valued at fair value as determined in good faith by the Board of Trustees. Debt
securities are valued by using market quotations or independent pricing services
which use prices provided by market makers or estimates of market values
obtained from yield data relating to instruments or securities with similar
characteristics. Short-term obligations having a maturity of 60 days or less are
valued at amortized cost or original cost plus accrued interest, which the Board
of Trustees believes represents fair value. Discounts and premiums on debt
securities are amortized to income over their prospective lives.
REPURCHASE AGREEMENTS. The Fund may invest in repurchase agreements from
broker-dealers, banks and other financial institutions, provided that the Fund's
custodian always has possession of the securities serving as collateral for the
repurchase agreements or has proper evidence of book entry receipt of the
securities. In a repurchase agreement, the Fund purchases securities subject to
the seller's simultaneous agreement to repurchase those securities from the Fund
at a specified time and price. The repurchase price reflects an agreed-upon
interest rate during the time of investment. All repurchase agreements entered
into by the Fund must be collateralized by U.S. Government securities, the
market values of which equal or exceed 102% of the principal amount of the
Fund's investment.
INVESTMENT INCOME AND SECURITIES TRANSACTIONS. Security transactions are
accounted for on the date the securities are purchased or sold. Cost is
determined and gains and losses are based on the identified cost basis for both
financial statement and federal income tax purposes.
<PAGE>
THE COMMUNITY REINVESTMENT ACT QUALIFIED INVESTMENT FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) NOVEMBER 30, 1999
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NOTE 1 - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES(CONTINUED)
Dividend income is recognized on the ex-dividend date or as soon as information
is available to the Fund. Interest income is recognized on an accrual basis.
FEDERAL INCOME TAXES. It is the policy of the Fund to comply with all
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute substantially all of its taxable income to its
shareholders. Therefore, no Federal income tax provision is required. Cost of
securities for tax purposes is substantially the same as for financial reporting
purposes.
DISTRIBUTIONS TO SHAREHOLDERS. Dividends from net investment income are declared
and paid monthly and distributable net realized capital gains, if any, are
declared and distributed at least annually. Distributions to shareholders are
recorded on the ex-dividend date. Income and capital gain distribution are
determined in accordance with income tax regulations which may differ from
generally accepted accounting principals.
USE OF ESTIMATES. In preparing financial statements in conformity with generally
accepted accounting principles, management makes estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements, as well as the reported amount of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
NOTE 2 - CAPITAL SHARE TRANSACTIONS
Transactions in shares of the Fund for the period ended November 30, 1999 were
as follows:
SHARES AMOUNT
Shares sold ..................... 359,260 $3,623,748
Redeemed ........................ 974 9,673
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Net Increase .................... 360,234 $3,623,748
======= ==========
NOTE 3 - INVESTMENT TRANSACTIONS
The aggregate purchases and sales of investments, excluding short-term
investments, by the Fund for the period ended November 30, 1999, were as
follows:
Purchases:
U.S. Government ................... $ 0
Other ............................. 5,622,238
Sales:
U.S. Government ................... 0
Other ............................. 2,015,836
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THE COMMUNITY REINVESTMENT ACT QUALIFIED INVESTMENT FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) NOVEMBER 30, 1999
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NOTE 3 - INVESTMENT TRANSACTIONS (CONTINUED)
At November 30, 1999, gross unrealized depreciation of investments for tax
purposes were as follows:
Appreciation .............................. $ 0
Depreciation .............................. (34,832)
--------
Net depreciation on investments ........... $(34,832)
========
NOTE 4 - ADVISORY FEES AND OTHER RELATED PARTY TRANSACTIONS
The Fund has entered into an Advisory Agreement with CRAFund Advisors, Inc. (the
"Advisor"), a registered investment advisor, to provide the Fund with investment
management services. Pursuant to the Advisory Agreement, the Advisor is entitled
to receive a fee, calculated daily, and paid monthly at the annual rate of 0.50%
as applied to the Funds' daily net assets. For the period ended November 30,
1999, the Advisor voluntarily waived their advisory fees which amounted to
$2,430.
For the period ended November 30, 1999 the Advisor voluntarily agreed to
reimburse the Fund to the extent total annualized expenses exceed 1.00% of the
Fund's average daily net assets. For the period ended November 30,1999, the Fund
incurred $58,841 of expenses reimbursable by the Advisor.
The Fund has adopted a distribution plan (the "Plan"), pursuant to Rule
12b-1 under the Act which permits the Fund to pay certain expenses associated
with the distribution of its shares. The Plan provides that the Fund will
reimburse SunCoast Capital Group, Ltd., (the "Distributor"), the Fund's sole
underwriter and distributor, for actual distribution and shareholder servicing
expenses incurred by the Distributor not exceeding, on an annual basis, 0.25% of
the Fund's average daily net assets. For the period ended November 30, 1999, the
Fund reimbursed the Distributor $1,005 for distribution costs incurred.
Certain trustees and officers of the Fund are affiliated with the Advisor.
