UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
| x | Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
For the quarterly period ended November 30, 2003
Or
| ¨ | Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
For the transition period from to
Commission File No. 817-00807
Access Capital Strategies Community Investment Fund, Inc.
(Exact name of registrant as specified in its charter)
| Maryland | 04-3369393 | |
| (State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) | |
| 124 Mt. Auburn Street, Suite 200N Cambridge, MA 02138 | ||
| (Address of principal executive offices) (Zip Code) | ||
617-576-5858
(Registrant’s telephone number, including area code)
N/A
(Former name, former address and former fiscal year, if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities and Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant has been required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 126-2 of the Exchange Act): Yes x No ¨
The registrant had 95 shareholders and 29,087,879 shares of common stock outstanding as of November 30, 2003.
Access Capital Strategies Community Investment Fund, Inc.
November 30, 2003 Form 10-Q Quarterly Report
TABLE OF CONTENTS
| PAGE | ||||||
| PART I. FINANCIAL INFORMATION |
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| Item 1. | Condensed Financial Statements |
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|
Condensed Statements of Assets and Liabilities |
3 | |||||
| 4 | ||||||
| 5 | ||||||
|
Condensed Statements of Cash Flows (unaudited) |
6 | |||||
| 7 | ||||||
| 8 | ||||||
| 11 | ||||||
| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
13 | ||||
| Item 3. | 21 | |||||
| Item 4. | 22 | |||||
| PART II. OTHER INFORMATION |
23 | |||||
| Item 1. | 23 | |||||
| Item 2. | 23 | |||||
| Item 3. | 23 | |||||
| Item 4. | 23 | |||||
| Item 5. | 23 | |||||
| Item 6. | 23 | |||||
| 24 | ||||||
2
Access Capital Strategies Community Investment Fund, Inc.
CONDENSED STATEMENTS OF ASSETS AND LIABILITIES
| November 30, 2003 (unaudited) |
May 31, 2003 |
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| Assets: |
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| Investments, at value* |
$ | 365,254,153 | $ | 316,614,272 | ||||
| Cash |
6,897,028 | 1,498,826 | ||||||
| Receivables: |
||||||||
| Capital shares sold |
8,018,000 | 100,000 | ||||||
| Interest |
1,669,140 | 1,508,738 | ||||||
| Variation margin |
376,873 | 4,344 | ||||||
| Principal paydowns |
52,828 | 70,677 | ||||||
| Prepaid expenses and other assets |
154,315 | 49,209 | ||||||
| Total assets |
382,422,337 | 319,846,066 | ||||||
| Liabilities: |
||||||||
| Payables: |
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| Reverse repurchase agreements (including accrued interest of $28,424, $18,871, and $25,075, respectively) |
85,528,424 | 47,018,871 | ||||||
| Securities purchased |
9,685,900 | 23,374,300 | ||||||
| Dividends to shareholders |
1,197,924 | 2,153,075 | ||||||
| Investment advisor |
158,781 | 221,421 | ||||||
| Other affiliates |
12,327 | 14,892 | ||||||
| Accrued expenses and other liabilities |
— | 29,627 | ||||||
| Total liabilities |
96,583,356 | 72,812,186 | ||||||
| Net Assets: |
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| Net Assets |
$ | 285,838,981 | $ | 247,033,880 | ||||
| Net Assets Consist of: |
||||||||
| Paid-in capital |
$ | 291,532,828 | $ | 243,079,354 | ||||
| Undistributed (accumulated distributions in excess of) investment income - net |
(1,401,841 | ) | (1,401,829 | ) | ||||
| Accumulated realized capital losses on investments-net |
(5,567,135 | ) | (5,491,453 | ) | ||||
| Unrealized appreciation on investments-net |
1,275,129 | 10,847,808 | ||||||
| Total accumulated earnings (losses)-net |
(5,693,847 | ) | 3,954,526 | |||||
| Net Assets |
$ | 285,838,981 | $ | 247,033,880 | ||||
| Net Asset Value Per Share |
$ | 9.83 | $ | 10.21 | ||||
| * Identified cost |
$ | 363,454,659 | $ | 304,973,620 | ||||
| Shares issued and outstanding, $.0000001 par value, 100,000,000 shares authorized |
29,087,879 | 24,195,706 | ||||||
See Notes to Condensed Financial Statements.
3
Access Capital Strategies Community Investment Fund, Inc.
FINANCIAL INFORMATION (continued)
CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)
| Three Months Ended |
Six Months Ended |
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| November 30, 2003 |
November 30, 2002 |
November 30, 2003 |
November 30, 2002 |
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| Investment Income: | Interest |
$ | 4,652,512 | $ | 3,870,513 | $ | 9,030,392 | $ | 7,427,657 | |||||||||
| Expenses: | Management fees |
429,171 | 318,440 | 828,981 | 605,109 | |||||||||||||
| Interest expense |
189,822 | 170,025 | 379,475 | 301,368 | ||||||||||||||
| Professional fees |
49,629 | 21,446 | 79,283 | 44,105 | ||||||||||||||
| Accounting services |
24,656 | 22,134 | 45,681 | 42,914 | ||||||||||||||
| Pricing fees |
12,893 | 3,146 | 23,405 | 5,612 | ||||||||||||||
| Director’s fees and expenses |
6,599 | 7,827 | 13,420 | 15,762 | ||||||||||||||
| Custodian fees |
9,311 | 6,035 | 16,482 | 11,411 | ||||||||||||||
| Organizational fees |
— | 10,820 | — | 20,754 | ||||||||||||||
| Transfer agent fees |
4,539 | 4,995 | 8,671 | 10,060 | ||||||||||||||
| Other |
4,296 | 5,984 | 8,303 | 12,097 | ||||||||||||||
| Total expenses before reimbursement |
730,916 | 570,852 | 1,403,701 | 1,069,192 | ||||||||||||||
| Reimbursement of expenses |
60,729 | (38,897 | ) | 136,535 | (79,174 | ) | ||||||||||||
| Total expenses after reimbursement |
791,645 | 531,955 | 1,540,236 | 990,018 | ||||||||||||||
| Investment income-net |
3,860,867 | 3,338,558 | 7,490,156 | 6,437,639 | ||||||||||||||
| Realized & Unrealized Gain (Loss) on Investments-Net: | Realized gain (loss) on investments-net |
1,349,643 | (609,931 | ) | (75,682 | ) | (3,952,298 | ) | ||||||||||
| Change on unrealized appreciation on investments-net |
(410,948 | ) | (882,091 | ) | (9,572,679 | ) | 4,263,758 | |||||||||||
| Total realized and unrealized gain (loss) on investments-net |
938,695 | (1,492,022 | ) | (9,648,361 | ) | 311,460 | ||||||||||||
| Net Increase (Decrease) in Net Assets Resulting from Operations |
$ | 4,799,562 | $ | 1,846,536 | $ | (2,158,205 | ) | $ | 6,749,099 | |||||||||
See Notes to Condensed Financial Statements.
4
Access Capital Strategies Community Investment Fund, Inc.
CONDENSED STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)
| Three Months Ended |
Six Months Ended |
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| Increase (Decrease) in Net Assets: |
November 30, 2003 |
November 30, 2002 |
November 30, 2003 |
November 30, 2002 |
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| Operations: | Investment income-net |
$ | 3,860,867 | $ | 3,338,558 | $ | 7,490,156 | $ | 6,437,639 | |||||||||
| Realized gain (loss) on investments-net |
1,349,643 | (609,931 | ) | (75,682 | ) | (3,952,298 | ) | |||||||||||
| Change in unrealized appreciation on investments-net |
(410,948 | ) | (882,091 | ) | (9,572,679 | ) | 4,263,758 | |||||||||||
| Net increase (decrease) in net assets resulting from operations |
4,799,562 | 1,846,536 | (2,158,205 | ) | 6,749,099 | |||||||||||||
| Dividends to Shareholders: | Dividends to shareholders from investment income-net |
(3,860,862 | ) | (3,296,895 | ) | (7,490,168 | ) | (6,397,771 | ) | |||||||||
| Capital Share Transactions | Net proceeds from sale of shares |
28,468,000 | 18,589,620 | 59,908,000 | 41,921,343 | |||||||||||||
| Value of shares issued to shareholders in reinvestment of dividends |
430,595 | 365,192 | 769,626 | 1,539,024 | ||||||||||||||
| Total issued |
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