Calvert Investments Launches Water Research Index
09 Februar 2016 - 11:03PM
Business Wire
New approach to water investment offers better
diversification and lower risk profile
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.
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version on businesswire.com: http://www.businesswire.com/news/home/20160209006794/en/
EdelmanCheyenne Hopkins,
202-371-0200Cheyenne.HopkinsBeach@edelman.comorKatherine Cresto,
202-371-0200Katherine.Cresto@edelman.com
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