ACCESS CAPITAL STRATEGIES COMMUNITY INVESTMENT FUND INC/MA - 10-Q Quarterly Report

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 February 29, 2004

¨	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 102 shareholders and 30,826,619 shares of common stock outstanding as of February 29, 2004.

Access Capital Strategies Community Investment Fund, Inc.

February 29, 2004 Form 10-Q Quarterly Report

TABLE OF CONTENTS


			PAGE
PART I. FINANCIAL INFORMATION

	Item 1.	Condensed Financial Statements

		Condensed Statements of Assets and Liabilities February 29, 2004 (unaudited) and May 31, 2003	3

		Condensed Statements of Operations (unaudited) Three months ended February 29, 2004 and February 28, 2003 Nine months ended February 29, 2004 and February 28, 2003	4

		Condensed Statements of Changes in Net Assets (unaudited) Three months ended February 29, 2004 and February 28, 2003 Nine months ended February 29, 2004 and February 28, 2003	5

		Condensed Statements of Cash Flows (unaudited) Nine months ended February 29, 2004 and February 28, 2003	6

		Financial Highlights (unaudited) Three months ended February 29, 2004 and February 28, 2003 Nine months ended February 29, 2004 and February 28, 2003	7

		Schedule of Investments (unaudited) February 29, 2004	8

		Notes to Condensed Financial Statements (unaudited)	11

	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	12

	Item 3.	Quantitative and Qualitative Disclosures about Market Risk	20

	Item 4.	Controls and Procedures	21

PART II. OTHER INFORMATION			22

	Item 1.	Legal proceedings	22

	Item 2.	Changes in securities	22

	Item 3.	Defaults upon senior securities	22

	Item 4.	Submission of matters to a vote of security holders	22

	Item 5.	Other information	22

	Item 6.	Exhibits and reports	22

	Signatures		23

Access Capital Strategies Community Investment Fund, Inc.

CONDENSED STATEMENTS OF ASSETS AND LIABILITIES


	February 29, 2004 (Unaudited)			May 31, 2003
	February 29, 2004 (Unaudited)			May 31, 2003
Assets:
Investments, at value*	$	370,572,386		$	316,614,272
Cash		650,893			1,498,826
Receivables:
Interest		1,660,175			1,508,738
Securities sold		2,969,578			—
Principal paydowns		19,916			70,677
Capital shares sold		—			100,000
Variation margin		—			4,344
Prepaid expenses and other assets		182			49,209

Total assets		375,873,130			319,846,066


Liabilities:
Payables:
Reverse repurchase agreements (including accrued interest of $17,114 and $18,871,
respectively)		57,217,114			47,018,871
Securities purchased		10,271,405			23,374,300
Dividends to shareholders		1,306,031			2,153,075
Investment advisor		155,894			221,421
Variation margin		150,000			—
Other affiliates		17,764			14,892
Accrued expenses and other liabilities		17,229			29,627

Total liabilities		69,135,437			72,812,186


Net Assets:
Net Assets	$	306,737,693		$	247,033,880


Net Assets Consist of:
Paid-in capital		308,728,483			243,079,354

Undistributed (accumulated distributions in excess of) investment income-net		(1,401,839	)		(1,401,829	)
Accumulated realized capital losses on investments-net		(7,701,037	)		(5,491,453	)
Unrealized appreciation on investments-net		7,112,086			10,847,808

Total accumulated earnings (losses)-net		(1,990,790	)		3,954,526

Net Assets	$	306,737,693		$	247,033,880

Net Asset Value Per Share	$	9.95		$	10.21

*Identified cost.	$	363,305,723		$	304,973,620
Shares issued and outstanding, $.0000001 par value, 100,000,000 shares authorized.		30,826,619			24,195,706

See Notes to Condensed Financial Statements.

Access Capital Strategies Community Investment Fund, Inc.

CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)


	Three Months Ended						Nine Months Ended
	February 29, 2004			February 28, 2003			February 29, 2004			February 28, 2003
Investment Income:
Interest	$	4,906,079		$	4,151,253		$	13,936,471		$	11,578,910

Expenses:
Management fees		460,522			354,144			1,289,503			959,253
Interest expense		209,545			159,165			589,020			460,533
Professional fees		51,123			29,248			130,406			73,353
Accounting services		30,437			22,314			76,118			65,228
Pricing fees		15,548			5,783			38,953			11,395
Custodian fees		13,897			6,487			30,379			17,898
Director’s fees and expenses		8,013			5,514			21,433			21,276

Organizational fees		—			11,691			—			32,445
Transfer agent fees		5,177			4,495			13,848			14,555
Other		8,289			4,931			16,592			17,028

Total expenses before reimbursement		802,551			603,772			2,206,252			1,672,964
Reimbursement of expenses		51,471			(43,332	)		188,006			(122,506	)

Total expenses after reimbursement		854,022			560,440			2,394,258			1,550,458

Investment income-net		4,052,057			3,590,813			11,542,213			10,028,452

Realized & Unrealized Gain (Loss) on Investments-Net:
Realized loss on investments-net		(2,133,902	)		(1,403,401	)		(2,209,584	)		(5,355,699	)
Change in unrealized appreciation on investments-net		5,836,957			4,250,444			(3,735,722	)		8,514,202

Total realized and unrealized gain (loss) on investments-net		3,703,055			2,847,043			(5,945,306	)		3,158,503

Net Increase in Net Assets Resulting from Operations	$	7,755,112		$	6,437,856		$	5,596,907		$	13,186,955

See Notes to Condensed Financial Statements.

Access Capital Strategies Community Investment Fund, Inc.

CONDENSED STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)


	Three Months Ended						Nine Months Ended
	February 29, 2004			February 28, 2003			February 29, 2004			February 28, 2003
*Increase (Decrease) in Net Assets:*
Operations:

Investment income-net	$	4,052,057		$	3,590,813		$	11,542,213		$	10,028,452

Realized loss on investments-net		(2,133,902	)		(1,403,401	)		(2,209,584	)		(5,355,699	)

Change in unrealized appreciation on investments-net		5,836,957			4,250,444			(3,735,722	)		8,514,202

Net increase in net assets resulting from operations		7,755,112			6,437,856			5,596,907			13,186,955

Dividends to Shareholders:
Dividends to shareholders from investment income-net		(4,052,055	)		(3,465,626	)		(11,542,223	)		(9,863,397	)

Capital Share Transactions:
Net proceeds from sale of shares		18,957,000			10,825,001			78,865,000			52,746,344
Value of shares issued to shareholders in reinvestment of dividends		352,674			357,472			1,122,300			1,896,496

Total issued		19,309,674			11,182,473			79,987,300			54,642,840

Cost of shares redeemed		(2,114,019	)		—

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