Fixed Income Investment Process 

Calvert manages taxable fixed-income funds that span the range of target durations1 from ultra-short to long, including portfolios that invest in high-yield corporate bonds, government-related securities, and tax-free bonds.

Sources of Potential Alpha

Calvert's fixed-income portfolio management team strives to add excess return through five broad strategies:

  • Manage duration
  • Seek to optimize position along the yield curve 
  • Manage allocations among broad types of fixed-income securities as well as across industries within the corporate bond sector
  • Select individual securities that offer the most relative value
  • Trade actively to take advantage of market volatility

Calvert's portfolio managers closely monitor sources of risk, including the size of individual holdings and of allocations to various security types, considering risk both relative to the portfolios' passive benchmarks and in absolute terms.

Calvert’s credit research process combines fundamental analysis with an assessment of environmental, social, and governance (ESG) factors. All Calvert funds exclude securities issued by tobacco-related companies.

The Role of the Credit Analyst

Our team of credit analysts examines the financial condition of corporate bond issuers as well as the structure, terms, and covenants of specific bond issues. From a fundamental research standpoint, the credit analysts collaborate closely with Calvert’s sustainability research department analysts to evaluate a bond issuer’s environmental, social, and governance (ESG) risk factors. This robust ESG integration process helps us identify, and may lower the risks associated with, ESG factors across the fixed-income portfolios.

Portfolio Construction

Calvert applies a robust, thoughtful approach to fixed-income portfolio construction:

  1. The investment strategy committee meets monthly to discuss the broad macroeconomic and bond market outlook. The committee includes the chief investment officer, the fixed-income strategist, the lead portfolio managers, the head of credit research, the risk analyst, and one senior credit analyst. This process boosts collaboration across the team and helps ensure that portfolio positioning decisions are based on a broad range of viewpoints.
  2. Portfolio managers implement broad duration and yield-curve strategies based on the investment committee's outlook.
  3. Portfolio managers develop a strategy to allocate fund assets among the broad fixed-income sectors based on relative value.
  4. Calvert’s credit analysts collaborate with the portfolio managers to determine relative value among industries/sectors and among individual securities.
  5. Portfolio managers make buy and sell decisions, and monitor the portfolio holdings in an effort to ensure that they include the securities that offer the most compelling relative value at acceptable risk levels.

A Closer Look at Calvert Bond Portfolio, a Calvert Signature Strategy™

Calvert Bond Portfolio, a Calvert Signature Strategy, approaches ESG factors by building on the ESG integration process common to all Calvert fixed-income funds and applying particularly stringent corporate social responsibility criteria to its holdings.

1. Duration measures a portfolio's sensitivity to changes in interest rates. Generally, the longer the duration, the greater the change in value in response to a given change in interest rates.

 

Calvert Fixed Income Portfolios

Bond Funds
  Share Class Ticker Symbol CUSIP Fund #
Taxable
Calvert Bond Portfolio A CSIBX 131618407 916
  B CBDBX 131618837 246
  C CSBCX 131618605 616
  Y CSIYX 131618597 366
Calvert Government Fund A CGVAX 131582546 974
  C CGVCX 131582538 654
Calvert Green Bond Fund A CGAFX 13161P730 898
  Y CGYFX 13161P722 498
Calvert High Yield Bond Fund A CYBAX 131582454 980
  C CHBCX 131582447 479
  Y CYBYX 131582397 318
Calvert Income Fund A CFICX 131582207 908
  B CBINX 131582835 208
  C CIFCX 131582744 608
  Y CIFYX 131582553 356
Calvert Long-Term Income Fund A CLDAX 131582710 929
Calvert Short Duration Income Fund A CSDAX 13161T104 923
  C CDICX 13161T302 623
  Y CSDYX 131582561 355
Calvert Ultra-Short Income Fund A CULAX 131582611 970
  Y CULYX 131582413 370
Calvert Unconstrained Bond Fund A CUBAX 13161X105 585
  C CUBCX 13161X204 576
  Y CUBYX 13161X402 575
Tax-Advantaged
Calvert Tax-Free Bond Fund A CTTLX 131620304 913

Investment in mutual funds involves risk, including possible loss of principal invested.

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Calvert mutual funds are underwritten and distributed by Calvert Investment Distributors, Inc., member, FINRA, and subsidiary of Calvert Investments, Inc. 800.368.2748

Calvert Investment Management, Inc. serves as the investment advisor and provides sustainability research for the Calvert mutual funds and institutional investment strategies.

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