Important News: Calvert Balanced Portfolio (CSIFX) and Calvert VP SRI Balanced Portfolio
Calvert Investments is committed to providing investors with investment choice, reasonable expenses and to setting the stage for the best possible performance outcomes. In that light, on September 11, 2013, Calvert Investment Management (CIM), the investment advisor to the Calvert Balanced Portfolio (CSIFX) and Calvert VP SRI Balanced Portfolio, assumed responsibility for the day-to-day management of the equity assets previously managed by sub-advisor New Amsterdam Partners LLC (NAP).
Potential Benefits to Investors
As a result of this shift, Calvert believes that the Portfolios will have better style-positioning and an improved risk/return profile, which may result in more consistent performance results.
CIM will apply its active large-cap-core strategy to the management of each Portfolio. This strategy emphasizes quantitative, fundamental, and macroeconomic insights, and the integration of Calvert's signature environmental, social, and governance (ESG) criteria.
At the same time, as of December 1, 2013, the Portfolios' advisory fees will be reduced for all share classes of Calvert Balanced Portfolio (A, B, C, Y and I) and for the Calvert VP SRI Balanced Portfolio as shown in the table below:
Calvert VP SRI Balanced Portfolio and Calvert Balanced Portfolio (CSIFX)
New Annual Fund Operating Expenses effective December 1, 2013
|Calvert Balanced Portfolio||Mgt. Fees||Dist./ 12 b-1 Fees||Other Expenses||Acquired Fund Fees/Expenses||Less Fee Waiver and/or Expense Reimbursement||Total Annual Operating Expenses|
|Class Y||0.68%||N/A||0.36%||0.02%||(0.08%)||1.06% (net expenses 0.98%)|
|I Shares||0.53%||N/A||0.28%||0.02%||(0.09%)||0.83% (net expenses 0.74%)|
|Calvert VP SRI Balanced Portfolio||0.69%||N/A||0.20%||N/A||N/A||0.89%|
New Amsterdam Partners Remains Sub-advisor to Two Calvert Portfolios
NAP remains the sub-advisor to the Calvert Capital Accumulation Fund (CCAFX) and Calvert VP SRI Mid Cap Growth Portfolio. Calvert believes that NAP's growth bias remains appropriate for these strategies, which seek to provide long-term capital appreciation by investing primarily in mid-cap stocks that meet each strategy's investment criteria, including financial and sustainability factors.
These management shifts will not impact the investment objectives, strategies, risk factors or benchmarks of either Portfolio. CIM, the Portfolios' investment advisor, remains responsible for the overall management of both Portfolios. Natalie Trunow, CIM's chief investment officer, equities, serves as portfolio manager for equity assets managed by CIM for each Portfolio. Eugene Profit, founder, CEO and CIO of Profit Investment Management remains as a sub-advisor to the Calvert Balanced Portfolio, managing a portion of its equity assets. Matt Duch and Vishal Khanduja of CIM remain as portfolio managers for the fixed-income assets of each Portfolio. Learn more about the management team of these Portfolios.
Investment in mutual funds involves risk, including possible loss of principal invested. You could lose money on your investment in the Portfolio, or the Portfolio could underperform, for any of the following reasons: a) the market prices of stocks held by the Portfolio may fall, b) the individual stocks and bonds in the Portfolio may not perform as expected, and c) the portfolio management practices may not achieve the desired result. The fixed-income portion of the Portfolio is subject to interest rate risk and credit risk. As interest rates rise, bond prices generally decrease. The prices of long-term bonds are more sensitive to changes in interest rates than the prices of short-term bonds.
High-yield, high risk bonds, which are rated below investment grade, can involve a substantial risk of loss because they have a greater risk of issuer default and are subject to greater price volatility than investment-grade bonds.