BETHESDA, Md.--(BUSINESS WIRE)--Today, Calvert Investment Management, Inc. (CIM) announced the launch of the Calvert Equity Income Fund (CEIAX). The Fund will be co-managed by portfolio managers James McGlynn and Yvonne M. Bishop. The Fund will aim to capitalize on opportunities primarily in income-producing large-cap equity stocks.
The Calvert Equity Income Fund will seek to achieve a competitive dividend yield by primarily investing in strong dividend-paying, large-cap common stocks but may also invest in preferred stock, trust preferred securities and convertible securities. The Fund will normally invest at least 80% of its assets in equity securities. In addition, the Fund may also invest up to 20% of its net assets in debt securities, including below-investment grade, high-yield debt securities (commonly known as “junk bonds”). The Fund will look to leverage the expertise of CIM’s fixed-income team to invest in below investment-grade, high-yield debt securities.
“The Fund should be of particular interest to those clients in retirement, or approaching retirement, who are seeking alternatives to the low yields currently available in traditional fixed-income products,” said Yvonne Bishop Co- Portfolio Manager of the Fund. “The Fund also offers the potential for long-term capital appreciation and can be an excellent way for conservative investors to participate in the stock market,” she added.
“The Fund is designed to meet growing demand among our clients and prospects for investments primarily in income-producing, large-cap company equity securities,” said James McGlynn, Co-Portfolio Manager of the Fund. “In particular, the Fund aims to target companies that we believe are undervalued, offering the opportunity for both long-term growth of capital and current income,” he added.
The Fund will employ the Calvert SAGE™ strategy, which first evaluates the Fund for a threshold responsibility standard with respect to tobacco, weapons and human rights. In addition, SAGE emphasizes enhanced engagement to advance environmental, social and governance performance in companies that demonstrate varying degrees of commitment and progress toward corporate responsibility and sustainability challenges.
“We are pleased to offer a large cap equity income fund option to our shareholders,” said Natalie Trunow, Senior Vice President and Head of Equities at Calvert. “Using our SAGE investment approach, we will be able to give investors who are interested in sustainable investing the opportunity to have exposure to income-generating large-cap equities,” she added.
ABOUT CALVERT INVESTMENTS
A leader in Sustainable and Responsible Investments (SRI), Calvert Investments offers investors among the widest choice of SRI strategies of any investment management company in the United States. Each SRI strategy employs one of three proprietary approaches. Calvert Signature® Strategies integrate two distinct research frameworks: a rigorous review of financial performance plus a thorough assessment of environmental, social and governance performance. Only when a company meets Calvert standards for both frameworks will we consider investing. Calvert Solution® Strategies selectively invest in companies that produce products and services designed to solve some of today's most pressing sustainability challenges. Calvert SAGE™ Strategies emphasize strategic engagement to advance environmental, social and governance performance in companies that may not meet Calvert standards today, but have the potential to improve. More information on Calvert SRI strategies is available at www.Calvert.com/SRI.
The Fund’s emphasis on dividend-paying stocks involves the risk that such stocks may fall out of favor with investors and underperform the market. Also, a company may reduce or eliminate its dividend, which may adversely affect the Fund’s ability to generate income. The Fund’s value-oriented investing approach may fall out of favor with investors from time to time, during which the Fund may underperform other funds using different investment approaches. In addition, 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.
For more information on any Calvert fund, please contact Calvert at 800.368.2748 for a free summary prospectus and/or prospectus. 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.