Eaton Vance Management has launched Calvert ESG Leaders Strategies, a new series of equity separate account strategies for institutional and professional investors offered by Calvert Research and Management, a subsidiary of Eaton Vance.
The Calvert ESG Leaders Strategies are co-managed by Jade Huang and Chris Madden, vice presidents and portfolio managers at Calvert. The strategies invest in the common stocks of selected companies with leading environmental, social and governance (ESG) characteristics as determined by Calvert. Calvert serves as the investment adviser to the strategies.
Calvert ESG Leaders Strategies are:
- Calvert U.S. ESG Leaders
- Calvert Tax-Managed U.S. ESG Leaders
- Calvert Global ex.-U.S. Developed Markets ESG Leaders
- Calvert Tax-Managed Global ex-U.S. Developed Markets ESG Leaders
- Calvert Global Developed Markets ESG Leaders
- Calvert Tax-Managed Global Developed Markets ESG Leaders
- Calvert Emerging Markets ESG Leaders
The Calvert ESG Leaders Strategies seek to invest in companies that are leaders or emerging leaders in ESG factors that Calvert believes are material to long-term performance. The investment process has three primary components: stock selection, portfolio optimization and corporate engagement. The strategies seek to use corporate engagement to strengthen how portfolio companies manage material environmental and social exposures and governance processes and to enhance investment returns.
“Calvert’s proprietary, industry-leading research system enables us to identify companies that are leading their peers in managing financially material ESG risks, and which may be poised to take advantage of business opportunities based on their knowledge of and commitment to meaningful ESG practices,” said John Streur, president and chief executive officer of Calvert. “Financial materiality is a critical component of ESG analysis. We believe understanding the connection between sustainability factors and business success sets these companies apart and positions them to maneuver efficiently and effectively in an evolving world.”
Calvert ESG Leaders Strategies employ a dynamic investment approach that leverages quantitative and qualitative analysis and a risk-managed portfolio construction process, while seeking to effect positive change.
“In developing the strategies, we conducted a quantitative review of ESG leaders’ past performance,” said Ms. Huang. “The results indicate that companies that achieved top ESG scores in financially material factors have historically produced stronger financial performance than those with weaker ESG scores. Additionally, we found that by optimizing the portfolios, we could position the strategies to achieve positive environmental and societal impact by increasing exposure to companies with healthier environmental footprints and better gender diversity.”