March/April 2008

Catholic Health Initiatives Continues Commitment to Socially Responsible Investing

Catholic Health Initiatives’ commitment to socially responsible investing includes the Direct Community Investment Program and shareholder activism.

Direct Community Investment Program The Direct Community Investment Program seeks to achieve the goal of lending two percent of the total Operating Investment Program assets to organizations that promote access to health care, housing and jobs for underserved populations. Catholic Health Initiatives’ Social Responsibility Investment Staff Committee recently approved four direct community investments: Calvert Foundation Bethesda, Md. Investment amount: $10 million The Calvert Foundation offers Calvert Community Investment Notes to individuals and institutions to channel resources to direct investments in community development financial organizations. The Foundation invests in nonprofit organizations with proven track records that demonstrate strong management, effective operations, good financial performance and sound capitalization. With a record of only .02 percent in loan losses, the Calvert Foundation demonstrates that community development investments can yield both consistent financial performance and social returns. The investment in Calvert Community Investment Notes allows CHI to be an active participant in the distribution of the loan funds. Northern California Community Loan Fund San Francisco, Calif. Loan amount: $1 million ($500,000 loan renewal, $500,000 new loan) The primary purpose of the Northern California Community Loan Fund (NCCLF) is to revitalize low-income communities through lending and technical assistance to nonprofit organizations. NCCLF seeks to strengthen the economic base of low-income communities by lending to nonprofit organizations that typically have limited access to financing from traditional lenders. This is the third investment made by Catholic Health Initiatives in NCCLF. This new investment will allow NCCLF to expand its capacity to make direct loans to organizations that meet the needs of low-income communities throughout Northern California. Financing Ozarks Rural Growth & Economy Huntsville, Ark. Loan amount: $500,000 (renewal) Financing Ozarks Rural Growth & Economy (FORGE) is a revolving loan fund that provides loans to farmers, small businesses, home-based business and recent immigrants. The mission of FORGE is to promote and enhance the quality of life and economic sustainability of agricultural communities by linking investors to borrowers, urban communities to rural communities, consumers to producers and low-income groups with basic affordable credit. FORGE’s primary service area is the Ozark region, where poverty in rural counties ranges from 14 to 27 percent of the population. This loan renewal will be used to assist FORGE in expanding its lending into rural housing and small business loans. Northcountry Cooperative Development Fund Minneapolis, Minn. Loan amount: $500,000 (renewal) The Northcountry Cooperative Development Fund (NCDF) is a member-owned financial intermediary that provides loans to cooperative enterprises. Its mission is to promote economic equity and community stability through loans to producer, worker, housing and consumer cooperatives in the upper Midwest. Loans are targeted to low-income communities and used for expansions, relocations, equipment, improvements, start-ups, real estate, home ownership and working capital needs. The loan provided by Catholic Health Initiatives will support the lending activities of NCDF.