ABOUT US creative: \kre^at^iv\ adj.. 1. having the power of something produced through innovation and skill rather than imitation. creative investment research: \kre^at^iv in^vestment ri^search\ company. 1. a minority-owned firm using innovation and skill to produce investment services and products. Services and Publications. Services: Economic analysis and forecasts. Help determine projected investment value using our Fully Adjusted Return® Methodology. Review and forecast current economic and social investing trends. Research on women and minority-owned financial institutions: banks, thrifts, brokerage firms. Provide objective, independent information and analysis that can be used to select value adding women and minority-owned financial institutions for use in debt issues, stock offering, and stock buy back programs. Corporate Social Responsibility (CSR) and Environmental Social and Governance (ESG) research and services. Incorporate CSR/ESG issues into investment analysis and decision-making processes. Incorporate CSR/ESG issues into policies and practices. Seek appropriate disclosure on CSR/ESG issues. Integrate CSR/ESG factors in several areas, including investment decision-making, active ownership, transparency, collaboration. SRI/ESG/CSR Investment management services. Develop a community and minority bank deposit program. Monitor and rate banks. Manage a portfolio of Mortgage Backed Securities backed by high social return mortgages. Manage a diversity-focused large cap equity portfolio. (Click on the links below to download supporting documents.) Creative Investment Research, Incorporated is an independent investment research and management firm, founded in 1989. We own and manage www.minoritybank.com and www.minorityfinance.com. For clients, our services can save millions, if not billions: on December 22, 2003 and February 6, 2006, we warned the S.E.C. and other regulators that statistical models created by the firm using the Fully Adjusted Return ® Methodology signaled the probability of system-wide economic and market failure (see below). This was one of the first warnings issued concerning the credit crisis. The firm specializes in community development and socially responsible investing. We have been certified as a minority-owned company. The Community Development Financial Institution Fund of the U.S. Department of the Treasury certified the firm as a Community Development Entity on August 29, 2003. We note that registration by any of these entities does not imply endorsement of the firm, Mr. Cunningham, his activities or his ratings. In September, 1998, Mr. Cunningham opposed the application, approved by the Federal Reserve Board on September 23, 1998, by Travelers Group Inc., New York, New York, to become a bank holding company. In October 1998, in a petition to the United States Court of Appeals (Case Number 98-1459) concerning the Travelers Group Inc./Citicorp merger, Mr. Cunningham cited evidence that growing financial market malfeasance greatly exacerbated risks in financial markets, reducing the safety and soundness of large financial institutions. He went on to note that: The nature of financial market activities is such that significant dislocations can and do occur quickly, with great force. These dislocations strike across institutional lines. That is, they affect both banks and securities firms. The financial institution regulatory structure is not in place to effectively evaluate these risks, however. Given this, public safety is at risk. On February 1, 2000, Mr. Cunningham wrote to the office of U.S. Senator Samuel Brownback (R-KS) urging him to encourage pension funds to divest from the Sudan. On June 15, 2000, Mr. Cunningham testified before the House Financial Services Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises (GSE’s) of the US Congress. He suggested that the GSE’s (Fannie Mae and Freddie Mac) be subject to a through “Social Audit.” A Social Audit is an examination of the performance of an enterprise relative to certain social objectives. It also includes a review of ethical practices. Had they been subject to this audit, certain flaws in their operation, including ethical shortcomings, would have been revealed earlier, in a better market in which to make corrections. In 2001, William Michael Cunningham, Creative Investment Research, Inc. (CIR) participated in one of the first wide scale home mortgage loan modification projects in the United States. The Minneapolis-based project sought to help 50 families victimized by predatory lending practices. See article, Property Flipping Remediation Yields Investment-grade Security. On December 22, 2003, we warned regulators that statistical models created by the firm using the Fully Adjusted Return (TM) Methodology signaled the probability of system-wide economic and market failure. This was one of the first warnings issued concerning the coming credit crisis. See Page 6. In 2005, Mr. Cunningham served as an expert witness in a case against PMI Group, Fairbanks Capital Corporation, Select Portfolio Servicing, US Bank National Association, as Trustee of CSFB ABS Series 2002-HEI, et. al. The case sought to hold Credit Suisse First Boston, Fairbanks/SPS, Moodys and Standard and Poors, US National Bank Association, and other parties legally responsible for supporting and facilitating fraudulent subprime lending market activities. Had this single case been successful, we believe the credit crisis would have been less severe. On April 11, 2005, Mr. Cunningham testified on behalf of investors before Judge William H. Paley III in the US District Court for the Southern District of New York at a fairness hearing regarding the $1.4 billion dollar Global Research Analyst Settlement. No other investment advisor testified or provided comments at the hearing. On February 6, 2006, we again warned regulators that statistical models created by the firm using the Fully Adjusted Return (TM) Methodology confirmed that system-wide economic and market failure was a growing possibility. We stated that: Without meaningful reform there is a small, but significant and growing, risk that our economic system will simply cease functioning. See pages 2 and 8. On September 28, 2008, we wrote to Richard Shelby, Ranking Member, Committee on Banking, Housing and Urban Affairs, United States Senate, to comment on the financial crisis rescue plan then under consideration by the US House and the US Senate. In the appendix, we provided a four step plan for dealing with the crisis. On May 6, 2010, we wrote to the Federal Reserve Board to file a CRA complaint against Goldman Sachs. A lawsuit filed by the US Securities and Exchange Commission against the firm on April 16, 2010 reveals that Goldman engaged in actions that were not consistent with safe and sound banking practices and were specifically designed not to meet the credit needs of communities served by the firm, as required under CRA. Current Press Releases Core beliefs Domestic financial markets are broad and well functioning, for the most part. These markets have, however, ignored investment opportunities in markets populated by minorities and women. Certain institutions have been the beneficiaries of an unprecedented increase in financial market activity and asset values. For these institutions, devoting even a small percentage of assets to markets populated by minorities and women will help even the distribution of income and wealth, contribute to domestic political and economic stability, and earn a competitive return. It is our belief that investors, women, and minorities are well served by these efforts. Mission Objectively furnish financial research and consulting services to institutions and others investing in minority markets. Client interests ALWAYS come first. Operating philosophy Our independence is critical. We have, over the years, observed a growing lack of objectivity in the financial markets. This lack of objectivity is less important during times of increasing asset values, but we believe independence and the objectivity it allows will become important when markets stumble. Investment Performance We believe it possible to create investments and portfolios that perform well financially and that address social concerns. We have uncovered many investment opportunities of this type. New Tools We have developed several new social or targeted investment instruments and methods. Given recent developments in information technology, it is much easier to create very powerful analysis tools to assist investment decision making. These tools and techniques allow institutional investors to allocate funds for targeted social purpose investing in an ERISA complaint, market-based manner. We pioneered the systematic use of financial and social data in the selection and evaluation of financial institutions when we created the first social and financial impact methodology, the Fully Adjusted Return (TM) index, in 1991. We developed the first CRA securitization. (MBS pool backed by loans from minority financial institutions. Investment first proposed in 1992.) We helped create a refinancing plan for victims of property flipping in Minneapolis. We developed a proposal for the first CRA-linked equity investment.(Equity investment tied to Community Reinvestment Act rating.) We participated in and helped create the first NBA team-sponsored financial literacy program. We developed a proposal for the first faith-based, World Bank-backed microcredit bond. Our Record We have been active in social investing for some time: Speaker at the 15th Annual SRI in the Rockies Conference. Thursday, October 7, 2004. Keystone, Colorado.Topic: Corporate and Mutual Fund Scandals in Review. Speaker at the 13th Annual SRI in the Rockies Conference. Thursday, October 20, 2002. The Broadmoor Hotel, Colorado Springs, Colorado Topic: The New Markets Tax Credit Program: Guide for Social Investors. Presentation to Sampo Fund Management, Helsinki, Finland. 21 January 2002. Topic: SRI investing today and outlook for the future. SPI-Finance - a project undertaken by a group of financial institutions from Australia, Germany, the Netherlands, South Africa, Switzerland and the UK. It aims to develop key performance indicators for the financial industry covering social performance. Ethical Investing. Social investing conference, Stuttgart, Germany. Held on April 4th and 5th, 2001. Described an approach to social investing. Strategies for Tomorrow's Natural Gas Industry: A "How To" Workshop for Minority Entrepreneurs and Industry Personnel. U.S. Department of Energy. July 17 - 19, 1996. Television, newspaper and magazine articles CONTACT