June 06, 2007
Calvert's New Growth Fund Has Global Focus
by Anne Moore Odell
American SRI pioneer Calvert launches the Calvert International Opportunities Fund, a small and
mid-cap fund with UK-based F&C Management as sub-advisor.
Investors have a chance to invest in international, non-US small and mid-cap stocks through the
newly launched Calvert International Opportunities Fund (ticker: CIOAX).
Calvert, based in Bethesda, MD, will bring
its know-how to the new Fund with each stock meeting strict environmental, social, and governance
criteria. London-based F&C is the Fund’s sub-advisor, bringing years of international and SRI
experience to the Fund.
This new fund complements Calvert’s large-cap international
stock fund, the Calvert World Values International Equity Fund, which launched in 1992. Currently,
Calvert offers 42 funds with a range of investment objectives. Twenty-two of the funds are socially
“We decided to launch the Fund to expand Calvert’s existing equity product
line and international offerings across multiple capitalization ranges,” said Steve Falci,
Calvert’s Chief Investment Officer. “In the small- and mid-cap international category, this new
fund offers financial advisors and their clients the ability to more fully diversify their
international opportunities and exposures.”
Stocks will focus on developed countries;
however, up to 20% of portfolio companies could be from emerging markets. The Fund will apply the
same fundamental analysis across all geographic areas.
The Fund will chose from small to
mid range companies whose market capitalization is in the Citigroup/S&P World EX-US EMI Index.
This Index follows companies in the $500 million to $30 billion range as of the end of December
“Portfolio managers will work to identify key picture industry trends and themes,
such as the rising demand for alternative energy, and then conduct detailed company research to
find those businesses with the most attractive qualities,” explained Jason Hollands, Head of
Communications at F&C. “The strategy is to find the right companies in the right sectors.”
F&C Management is a subsidiary
of F&C Asset Management, which has more than $200 billion under management. Since the first SRI
mutual fund it launched in Europe in 1984, F&C has been a leader in the European SRI market.
“Calvert’s due diligence analysis revealed that F&C was one of the strongest global asset
managers worldwide, with an impressive track record and proven investment process rooted in stock
selection across all areas of the international markets,” Falci said.
“We saw a unique
opportunity for synergy between the two firms in conducting environmental, social and governance
research analysis, implementing investment strategy, and constructing the final portfolio for the
Fund,” he added.
The Fund’s portfolio managers are Sophie Horsfall and Terry Coles. The
team manages the Stewardship International Fund, a European SRI fund, which Horsfall has managed
since 2002. Prior to joining F&C, Horsfall worked at Dresdner RCM Global Investors where she also
managed ethical portfolios.
The F&C portfolio managers are supported by a team of 15
governance and socially responsible investment analysts who conduct detailed research into
sustainability practices and policy developments at companies that will shape their operating
environments. The managers plan to actively engage with companies on sustainability issues.
“While the Fund's basic investment style relies on fundamental, bottom up research, F&C's house
macroeconomic view is set by its Strategy Team,” explained Falci. “This team analyzes top-level
economic data to develop a general, strategic ‘theme’ with regard to country, regional and sector
allocation. The team's output is another tool that the portfolio management team is free to use as
a backdrop during portfolio construction, but does not necessarily drive investment decisions.”
The Fund opened with Class A and I shares totaling $3 million. It is available to all US
investors and can be purchased through registered investment advisors and brokerage firms.
Calvert has approximately $15 billion in assets under management. Besides its family of funds,
Calvert produces the Calvert Social Index, which benchmarks large, US socially responsible