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.
Calvert applies a robust, thoughtful approach to fixed-income portfolio construction:
- 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.
- Portfolio managers implement broad duration and yield-curve strategies based on the investment committee's outlook.
- Portfolio managers develop a strategy to allocate fund assets among the broad fixed-income sectors based on relative value.
- Calvert’s credit analysts collaborate with the portfolio managers to determine relative value among industries/sectors and among individual securities.
- 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
|Share Class||Ticker Symbol||CUSIP||Fund #|
|Calvert Bond Portfolio||A||CSIBX||131618407||916|
|Calvert Government Fund||A||CGVAX||131582546||974|
|Calvert Green Bond Fund||A||CGAFX||13161P730||898|
|Calvert High Yield Bond Fund||A||CYBAX||131582454||980|
|Calvert Income Fund||A||CFICX||131582207||908|
|Calvert Long-Term Income Fund||A||CLDAX||131582710||929|
|Calvert Short Duration Income Fund||A||CSDAX||13161T104||923|
|Calvert Ultra-Short Income Fund||A||CULAX||131582611||970|
|Calvert Tax-Free Bond Fund||A||CTTLX||131620304||913|
Investment in mutual funds involves risk, including possible loss of principal invested.