Fresh water: a dwindling supply and a growing demand.
Although 97% of the world is covered in water, only 3% is fresh water. Of the world's small supply of fresh water, less than 1% is available for human consumption. Yet the demand for fresh water is growing twice as fast as the global population.
Experts say that total water usage in the U.S. has tripled over the last 30 years while the population has increased by only 50%.1 Globally, one out of six people does not have access to fresh water and one out of three do not have access to sanitized water. The problem is especially serious in Asia, where 36% of the world's drinkable water must somehow support 60% of the world's population.2
Demand vs. Supply Imbalance:
Regional Populations vs. World Supply Percentages
As if fresh water isn't scarce enough, much of it is wasted due to aging infrastructure. In the U.S., up to 20% is lost to leakage. Replacing the U.S. water infrastructure may cost between $300 billion and $1 trillion. At the current rate of investment, it would take 900 years to get the job done.3
The problem affects more than just drinking water. In northwest China, for example, factories have closed because there isn't enough water. Chinese government economists estimate that environmental troubles generally shave 10% off the country's gross domestic product every year.4
This confluence of issues —
- Finite supply of freshwater,
- Challenges of global population growth,
- Modernization of developing populations,
- Need for technology to maximize water supplies,
- Infrastructure to support its transport and storage
— lead many to conclude that water is a critical area for resource development. As such, the water sector represents a significant investment opportunity. Since we are left with little choice but to grow and increase spending in the water sector, the time may be ripe to invest in a water fund.
1 Goldman Sachs, March 24, 2008, Americas: Multi-Industry report: "The Essentials of Investing in the Water Sector; version 2.0."
2 Ibid.
3 Ibid.
4 "A Long Wait at the Gate to Greatness," July 27, 2008, The Washington Post, John Pomfret.
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., member FINRA, a subsidiary of Calvert Group, Ltd. #8274 (6/09)
Investing throughout the entire water network.
The Calvert Global Water Fund invests in more than just water. It also invests in a massive network of water-related systems, services and technologies involved in all stages of water management — from ground to people and back to ground again. Key areas include water and wastewater utilities, water pumps and valves, consulting and engineering to build water infrastructure, and technologies to maximize water supplies through purifying, desalination and metering.
There is investment opportunity in the utilities, the infrastructure and the technologies that are being used to manage our interaction with this scarce and valuable resource throughout each stage. Here are some examples: water collection, water storage, the infrastructure to move water through pipes from one area to another, desalination, innovations that reduce usage or emphasize re-use of water and systems that disinfect water prior to its discharge back into the environment.
Water. A timely and attractive investment.
As the world's population surges, its collective thirst for water — for drinking, agriculture, industry, and maintaining a high standard of living — will continue to surge as well. Yet the world faces a dwindling supply of fresh water.
The precarious situation related to the supply and demand for fresh water creates a significant need for global investment in sustainable methods of obtaining and delivering water. It also presents a significant growth opportunity for investors. Looking at the charts below, while recent performance for these representative markets has been negative, the water sector has outperformed the Global and U.S. Markets for the year-to-date, one-year, three-year and five-year time periods.
Water Sector Returns Compared to U.S. and Global Markets
Percentage of Outperformance of the Water Sector Compared to Global Markets
Performance as of 4/30/09.
Indices are unmanaged and do not reflect the payment of advisory fees and other expenses associated with an investment in a fund. Investors cannot directly invest in an index. Index performance does not represent fund performance. A fund may perform significantly differently. Index returns are for illustrative purposes only and do not represent actual performance of a Calvert Fund.
A Word About the Investment Risks. Calvert Global Water Fund is subject to the risk that stocks that comprise the water sector may decline in value. The water industry can be significantly affected by common economic trends, such as the availability of water, the level of rainfall and consumption, and other climatic events, in addition to environmental considerations, taxation, and government regulation (including the cost of compliance). The Fund is non-diversified and may invest more of its assets in a smaller number of companies; therefore, gains or losses on a single stock may have greater impact on the Fund. The stock markets in which the Fund invests may also experience periods of volatility and instability. Consequently, the Fund may tend to be more volatile than other mutual funds. Lastly, foreign investments involve greater risks than U.S. investments, including political and economic risks and the risk of currency fluctuations.
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., member FINRA, a subsidiary of Calvert Group, Ltd. #8274 (6/09)
Calvert Global Water Fund at a Glance - A Calvert Solution Strategy™
| Objective: | Long-term growth of capital by investing at least 80% of its net assets in equity securities of companies involved in the water sector or water related services |
| Fund Symbols: | CFWAX, CFWCX, CFWYX |
| Fund CUSIPS: | 13161P 797 (A-Class),13161P 789 (C-Class),13161P 771(Y-Class) |
| Strategy: | Combination of quantitative and fundamental investment processes |
| Cap Size: | All-market-cap |
| Geography: | U.S. and non-U.S. companies |
| Benchmarks: | MSCI World Index (Active); Janney Global Water Index (Passive) |
| Portfolio Manager: | Jens Peers of Subadvisor KBC Asset Management International, Ltd. |
| Share Classes: | A, C and Y |
About Calvert.
Calvert has the expertise to manage a global water fund. Calvert has one of the largest research departments in the U.S. dedicated to environmental, human rights and corporate governance issues. Our team of 18 social investment research analysts brings a wealth of experience to the complex and sensitive environmental, human rights, and governance issues related to investing in natural resources. When you combine that with Calvert's rigorous analysis and independent thinking, Calvert is a company you can trust. For more information about Calvert, go to www.calvert.com.
An actively managed fund
Unlike passively managed funds, the Calvert Global Water Fund is actively managed, allowing for a proactive and highly dynamic approach. Backed by a team of research analysts, our portfolio managers scour the market to discern those companies that we believe will have a truly sustainable competitive advantage. In an emerging technology sector that's abundant with opportunity and risk, an active management approach offers investors the added confidence of knowing that investment professionals are constantly reviewing the marketplace to maximize potential while reducing risk.
Calvert is pleased to be working with the Fund's subadvisor, KBC Asset Management International, Limited, of Ireland, to manage the Calvert Global Water Fund. They have been actively involved in the water investment field since 2000 and regional equity experts in seven global cities back their dedicated Eco-Funds management team. KBC Asset Management International, Limited is a subsidiary of Europe's 10th largest bank, The KBC Group.
Investing throughout the entire water network.
The Calvert Global Water Fund is not just an investment in drinking water or infrastructure, but in the entire water network — capture, storage, delivery, treatment and filtration — encompassing each stage of the water cycle. Water is needed for so much more than just drinking so Calvert wants to make sure that all pieces of the water puzzle are thought about and considered.
A pure water fund.
Unlike other water funds, 80% of the Calvert Global Water Fund's assets are derived from companies in the water sector. Calvert defines a company in the water sector as one in which at least 50% of its business is related to water.
Water is a human right.
We believe that all of us have a right to clean water. When you invest in the Calvert Global Water Fund, you invest in that right. Calvert strives to invest only in companies that support this objective.
A Word About the Investment Risks. Calvert Global Water Fund is subject to the risk that stocks that comprise the water sector may decline in value. The water industry can be significantly affected by common economic trends, such as the availability of water, the level of rainfall and consumption, and other climatic events, in addition to environmental considerations, taxation, and government regulation (including the cost of compliance). The Fund is non-diversified and may invest more of its assets in a smaller number of companies; therefore, gains or losses on a single stock may have greater impact on the Fund. The stock markets in which the Fund invests may also experience periods of volatility and instability. Consequently, the Fund may tend to be more volatile than other mutual funds. Lastly, foreign investments involve greater risks than U.S. investments, including political and economic risks and the risk of currency fluctuations.
Investment in mutual funds involves risk, including possible loss of principal invested.
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., member FINRA, a subsidiary of Calvert Group, Ltd. #8274 (6/09)
A water sector fund investing in diverse companies.
By investing in the Calvert Global Water Fund, you can invest in companies whose main priority is water. The fund is diverse, with investments spanning every sector of the water network, including capture, storage, delivery, treatment and filtration.
Here are just a few examples of the global companies that the Calvert Global Water Fund is invested in as of April 30, 2009:
Pentair is a U.S.-based company dedicated to water reuse and efficiency in the creation of improved filtration technologies. Pentair has made dozens of acquisitions which has increased its annual sales from $100 million to $2 billion in 10 years. The company plans to continue actively acquiring companies to further increase its business outside the U.S. Pentair has partnered with Water Missions International to fund "Project Safe Water," which focuses on delivering effective water systems to those in need.
Companhia de Saneamento Básico do Estado de São Paulo (SABESP), Brazil's largest water company, serves 22.7 million people across 370 municipalities in the state of São Paulo. The company has developed a technology called Aqualog to provide maximum efficiency on water production and wastewater treatment, while improving security and keeping costs down. SABESP is committed to providing access to clean water and is actively working to restore 865 acres surrounding the Cachoeia reservoir.
Itron is a leading global supplier of wireless data acquisition and communication products for electric, gas and water utilities. When daily and interval meter reads are combined with Itron's innovative software solutions, utilities can analyze usage, identify and manage peak load, forecast usage more accurately, and design programs based on detailed customer profiling and data logging that encourage responsible energy and water consumption. Itron's Fixed Network collection systems also provide tamper and leak detection at the water meter for managing loss due to theft and leakage.
Japan-based multinational Kurita Water Industries specializes in water-treatment chemicals and equipment. Kurita has developed numerous new technologies that have not only substantially saved costs in groundwater pumping, but has also resulted in 70% less surplus sludge waste in wastewater and rendered contaminated ground water harmless. Kurita has also created the Eco Shuttle, a system that recycles used water treatment chemical containers, therefore reducing waste and saving resources.
Company holdings represented the following percentages of assets under management in the Calvert Global Water Fund as of April 30, 2009: Companhia de Saneamento Basico do Estado de Sao Paulo, 2.92%; Itron Inc., 2.06%; Kurita Water Industries Ltd., 3.03%; Pentair, 4.44%. 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., member FINRA, a subsidiary of Calvert Group, Ltd. #8274 (6/09)