The new index focuses on investing in companies that manage either energy use in a sustainable manner or that are actively engaged in facilitating the transition to a more sustainable economy through the reduction of greenhouse gas emissions and the expanded use of renewable energy sources. These companies must also satisfy minimum market capitalization and liquidity thresholds while operating in a manner that meets the Calvert Principles for Responsible Investment.
Calvert Investments believes that society has signaled to the public and private sectors that it is time for a global energy transformation. In the wake of the Paris Agreement and broad alignment on capping worldwide emissions, corporations are becoming more aware of their environmental footprints and the importance of striving for sustainable business practices.
“The global capital markets are poised to play a significant role in future efforts to address climate change and bolster lagging sustainability standards,” said CEO, John Streur. “Calvert is striving to accelerate this shift through innovative, lower-cost funds that balance investors’ financial and ESG objectives,” Streur added. “The Calvert Global Energy Research Index is our latest step forward.”
Similar to the Calvert Global Water Research Index, Calvert’s new Global Energy Research Index takes a comprehensive approach to investing in the renewables sector as well as innovators in established industries.
“We are seeing companies beyond the renewable energy sector taking exciting steps to improve their environmental and sustainability practices,” said portfolio manager, Jade Huang. “This is a key reason why our new index encompasses positive disrupters that are differentiating themselves and driving impact across the utilities, industrials and technology sectors.”
Calvert Investments also announced that the Calvert Global Energy Solutions Fund (CGAEX) is moving from an actively managed approach to a passive strategy that seeks to track the performance of the Calvert Global Energy Research Index. This change is expected to take effect on or about October 3, 2016 and will reduce the Fund’s Class A net expense ratio from 1.85% to 1.65%.
About Calvert Investments:
Calvert Investments is a global leader in responsible investing. Our mission is to deliver superior long-term performance to our clients and enable them to achieve positive impact. Calvert Investments had more than $12.2 billion in assets under management as of December 31, 2015. Learn more about Calvert here. Calvert Investments is a registered trade name representing Calvert Investments, Inc. and its subsidiaries, including Calvert Investment Management, Inc., an SEC-registered investment advisor, and Calvert Investments Distributors, Inc., a FINRA member broker/dealer and distributor of the Calvert mutual funds.
Investment in mutual funds involves risk, including possible loss of principal invested.
The global energy solutions sector is subject to the risk that stocks that comprise the sustainable energy solutions sector may fall in value, and the risk that prices of energy (including traditional sources such as oil, gas or electricity) or alternative energy may fall. The sustainable energy solutions sector can be significantly affected by a number of factors, including fluctuations in energy prices, supply and demand of alternative energy fuels, energy conservation, and government regulations and policies. The Calvert Global Energy Solutions Fund is non-diversified and may invest more of its assets in a smaller number of issuers than a diversified fund; therefore, gains or losses on a single stock may have greater impact on the Fund. A downturn in the sustainable energy solutions industry would impact the Fund more than a fund that does not concentrate in this industry, and the Fund therefore may be more volatile than a typical mutual fund.
Large-cap companies may be unable to respond quickly to new competitive challenges such as changes in technology, and also may not be able to attain the high growth rate of successful smaller companies, especially during extended periods of economic expansion. Prices of small- and mid-cap stocks can be more volatile than those of larger, more established companies. Small- and mid-cap companies are more likely to have more limited product lines, fewer capital resources and less depth of management than larger companies. Prices of micro-cap securities are generally even more volatile and their markets are even less liquid relative to small-cap, mid-cap and large-cap securities. Foreign investments involve greater risks than U.S. investments, including political and economic risks and the risk of currency fluctuations. The risks of investing in emerging market securities are greater than those of investing in securities of developed foreign countries.
An index strategy has operating expenses; a market index does not. Although expected to track its target index as closely as possible while satisfying its investment criteria, an index strategy will not be able to match the performance of the index exactly.
Class A shares of the Calvert Global Energy Solutions Fund have a gross expense ratio of 1.98% and a net expense ratio of 1.85%. The net expense ratio reflects a contractual fee and/or expense reimbursement that currently extends through January 31, 2017. In connection with the reduction of the net expense ratio to 1.65% the contractual term will be extended through January 31, 2018.
For more information on any Calvert fund, please contact your financial advisor, call Calvert at 800.368.2748, or download a free summary prospectus and/or prospectus. An institutional investor should call Calvert at 800.327.2109. An investor should consider the investment objectives, risks, charges and expenses of an investment carefully before investing. The summary prospectus and prospectus contain this and other information. Read them carefully before you invest or send money.
Calvert mutual funds are underwritten and distributed by Calvert Investment Distributors, Inc., member FINRA and subsidiary of Calvert Investments, Inc.