The Community Development Fund Class A (CDCDX)

Overview

The fund described is a fixed income investment vehicle, focusing predominantly on debt securities that are either issued or guaranteed by the United States government, its agencies, instrumentalities, or sponsored enterprises. Its investment strategy is geared towards capitalizing on securities it deems to be CRA-qualifying, directing at least 80% of its net assets into such investments. This strategy indicates a conservative investment approach, prioritizing securities with a high degree of safety regarding principal and interest payments. The emphasis on CRA-qualifying investments suggests a commitment to supporting community development and fulfilling certain regulatory requirements, potentially appealing to socially responsible investors.

Products and Services

The fund's products and services are structured around its primary objective of investing in secure, high-grade fixed income securities. Detailed below are the key components of its investment approach:

• Government and Agency Securities: This category includes bonds and other debt instruments issued or guaranteed by the U.S. government or its agencies and instrumentalities. These are considered low-risk investments due to the backing by the federal government. The fund invests primarily in these securities, seeking to ensure safety and reliability in returns.
• Sponsored Enterprise Debt Instruments: These are securities issued by government-sponsored enterprises (GSEs). GSEs, though not officially part of the government, play a critical role in certain sectors of the economy, such as housing finance. These securities typically offer a higher yield than Treasury securities, balancing risk and return effectively.
• Investment Grade Fixed Income Securities: Beyond government-related securities, the fund invests in a broader range of fixed income securities that meet high credit quality standards (i.e., those rated investment grade). This diversifies the investment portfolio, managing risk while seeking to achieve competitive returns.
• CRA-Qualifying Investments: The fund targets investments that qualify under the Community Reinvestment Act (CRA). These investments are intended to support community development and meet specific regulatory criteria. This focus not only aligns with socially responsible investing principles but may also offer unique opportunities for earning returns while contributing positively to communities.