Stockholm (NordSIP) – Eaton Vance Management announced the launch of the Calvert ESG Leaders Strategies, a new series of equity separate account strategies for institutional and professional investors. The new ESG strategies are a product of Calvert Research and Management, a subsidiary of Eaton Vance.
Founded in 1924, Eaton Vance is a global investment and wealth manager headquartered in Washington, D.C., with US$465.3 billion assets under management as of 30 April 2020. Of this total, approximately US$21.3 billion were applied to a range of responsibly invested mutual funds, encompassing active and passively managed equity, income, alternative and multi-asset strategies. The company claims to traces its roots in responsible investing to the 1982 launch of the first mutual fund to oppose investing in companies doing business in apartheid-era South Africa.
The Calvert ESG Leaders Strategies are co-managed by Jade Huang and Chris Madden, vice presidents and portfolio managers at Calvert. The Calvert ESG Leaders Strategies include two USA-focused strategies, the Calvert U.S. ESG Leaders and the Calvert Tax-Managed U.S. ESG Leaders. Calvert also offers another two global non-USA strategies, the Calvert Global ex.-U.S. Developed Markets ESG Leaders and the Calvert Tax-Managed Global ex-U.S. Developed Markets ESG Leaders. The last two ESG strategies in Calvert’s recently launched suite are the Calvert Global Developed Markets ESG Leaders and the Calvert Tax-Managed Global Developed Markets ESG Leaders.
“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 (Pictured), 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 manoeuvre 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.
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.
“In developing the strategies, we conducted a quantitative review of ESG leaders’ past performance,” Huang said. “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.”
Image Courtesy of Eaton Vance