BETHESDA, Md.--(BUSINESS WIRE)--Today Calvert Investments launched the Calvert Global Water Research Index (CALH2O) – the sixth addition to the company’s growing suite of responsible indexes. The index focuses on investing in companies dedicated to the responsible stewardship, sustainability and accessibility of Earth’s water, but unlike existing sector indexes it offers better diversification, a lower risk profile and generally more attractive investment characteristics.
Calvert recognizes that while water is a global common good it is also becoming an increasingly demanded resource. To address this growing demand, Calvert believes that driving capital to responsible companies in the water sector will drive more investment in solutions to global water challenges.
“We’re very excited to bring the Calvert Principles for Responsible Investment and Calvert’s proprietary research system to this critical global need,” said John Streur, CEO. “We want to see more clean water get to more people,” continued Streur. “We are striving to ultimately create a whole new water paradigm by rewarding the best users and encouraging innovation.”
By including both water efficiency leaders and innovators, the Calvert Global Water Research Index provides a comprehensive approach to investing in water that addresses both the supply and demand sides of the water system.
“We recognize there are firms outside of the traditional water sector that are innovating to address global water challenges,” said portfolio manager Jade Huang. “We’ve added companies demonstrating leadership in water efficiency in the most water-intensive sectors to our index in an effort to address not only the supply of clean water, but also water consumption.”
Because the Calvert Global Water Research Index is less concentrated, it provides opportunities to invest in more companies, industries, sectors and countries than other existing water indexes that often concentrate in only one segment of the water industry. Compared to its peers, the index consists of larger and potentially more stable companies.
“We believe the Calvert Global Water Research Index is both unique in the marketplace and offers an attractive investment profile compared with other water indices,” said portfolio manager Chris Madden.
Calvert also announced that the Calvert Global Water Fund (NASDAQ: CFWAX) is moving from an actively managed approach to a passive strategy that seeks to track the performance of the Calvert Global Water Research Index. This change, together with other cost reduction initiatives, has reduced expenses associated with the fund from 1.83% to 1.28% (net on class A-shares) since the first of the year, a reduction of nearly thirty percent.
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 water sector is subject to the risk that stocks that comprise the water-related sector may fall in value. The water industry can be significantly affected by economic trends and environmental conditions, such as the availability of water, the level of rainfall and the occurrence of other climatic events, as well as changes in water consumption, price and supply fluctuations, taxation and government regulations and policies (including the cost of compliance). The Calvert Global Water 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 water-related sector would impact the Fund more than a fund that does not concentrate in this sector, 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.
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.
