By investing in Calvert Global Alternative Energy Fund, you can seek to grow your capital through investments in companies whose main business is alternative energy or are significantly involved in the alternative energy sector. Below are some examples of companies met the Fund’s investment criteria on April 30, 2009.
WIND ENERGY: Iberdrola Renovables (IBR)
Iberdrola is the largest global wind farm operator and market leader within this mature and scalable renewable energy sector. With an impressive portfolio of renewable energy projects—totaling over 9,600 MW all over the world, the company was the number one operator in the U.K. and the number two operator in the United States as of March 31, 2009. No other company boasts as much experience in installing, designing, and managing wind farms. Since Iberdrola Renovables went public in 2007, its strategy has been to expand its project portfolio more rapidly than any other wind farm operator—with future pipeline projects estimated to realize over 56,000 MW in capacity. The company's business is primarily focused on the wind energy market, but Iberdrola Renovables has also developed small-hydroelectric power, solar thermal energy, and even other technologies such biomass energy as well as wave and tidal power.
SOLAR POWER: First Solar (FSLR)
Based in Phoenix, Arizona, First Solar (FSLR) makes solar-power modules using an innovative thin-film semiconductor technology. First Solar’s products do not use polycrystalline silicon, which is currently in short supply worldwide, but instead use another industry’s waste—specifically, mining waste. The panel glass is coated with cadmium sulfide and cadmium telluride, byproducts of mining and smelting operations. As a result, First Solar’s production costs are lower than those for traditional silicon-based solar panels.
The manufacturing process does not result in detectable air emissions, residual water is purified, and almost all solid manufacturing wastes are purified and recycled. First Solar is the only publicly traded renewable energy company whose life cycle is “closed loop.” Over 90% of each First Solar PV Module can be returned free of charge and recycled into new modules. First Solar’s sales grew ten-fold from 2004 to 2006, followed by a near quadrupling in 2007. In 2008, the company invested in new factories, which should significantly increase production capacity.
ENERGY EFFICIENCY: Itron Inc. (ITRI:US)
An important step in harnessing technology for clean energy involves transforming the existing infrastructure into a “smart grid.” A smart grid allows renewable energy to be channeled efficiently within communities and brings power generation closer to users. According to the Department of Energy, making the grid even 5% more efficient would mean savings equal to the elimination of greenhouse gas (GHG) emissions from 53 million cars. Itron, Inc. (ITRI), based in Liberty Lake, Washington, is a leading technology provider that contributes to the formation of a smart grid. The company specializes in supplying wireless data acquisition and communication products for electric, gas, and water utilities. Its software for automating meter data collection permits utilities to enhance both resource management and conservation and to develop customer rate structures that encourage energy conservation. Itron’s automatic meter reading (AMR) systems, handheld meter reading computers, and meter data acquisition and analysis software help utilities and their customers reduce loads during peak usage times. Such “smart meters” give customers better information about their energy usage and costs while at the same time, improve the electrical system’s reliability.
A Word of Caution
While we may be optimistic about the prospects for companies in the alternative energy sector such as the aforementioned, we suggest that you keep in mind certain risks. The alternative energy sector can be significantly affected by obsolescence of existing technology, short product life cycles, falling prices and profits, competition from new market entrants and general economic conditions. The sector can also be significantly affected by fluctuations in energy prices and supply and demand of alternative energy fuels, energy conservation, the success of exploration projects and tax and other government regulations and policies. In addition, shares of the companies involved in the alternative energy sector have been more volatile than shares of companies operating in other more established sectors or industries.
Company holdings represented the following percentages of assets under management in the Calvert Global Alternative Energy Fund as of April 30, 2009: Iberdrola Renovables, 6.38%; First Solar, 3.89%; Itron Inc., 1.87%. Calvert may or may not still invest in, and is not recommending any action on, companies listed. For current information, see individual holdings on www.calvert.com. Current and future portfolio holdings are subject to market risk.
For more information on any Calvert fund, please contact Calvert at 800.368.2748 for a free prospectus. An investor should consider the investment objectives, risks, charges, and expenses of an investment carefully before investing. The prospectus contains this and other information. Read it carefully before you invest or send money.
Calvert mutual funds are underwritten and distributed by Calvert Distributors, Inc., a member of FINRA and subsidiary of Calvert Group, Ltd., #9025 (5/09)
