Calvert plans equity funds targeting investments demonstrating corporate sustainability principles

By Toni Weeks

San Luis Obispo, Calif., Feb. 17 – Calvert Social Index Series, Inc. announced it is planning two new equity funds that represent Calvert’s adherence to its corporate sustainability and responsibility principles, according to an N-1A filing with the Securities and Exchange Commission. The funds are expected to launch in May.

The Calvert U.S. Large Cap Growth Responsible Index Fund will seek to track the performance of the Calvert U.S. Large Cap Growth Responsible index. It will invest in each stock in the index in about the same proportion as represented in the index itself. Under normal market conditions, the fund will normally invest at least 95% of its net assets in securities contained in the index, which measures the performance of companies that meet its responsible and sustainable principles and that are selected from the universe of the largest 1,000 U.S. companies, based on total market capitalization, included in the S-Net 1000 index.

The second fund, the Calvert U.S. Large Cap Value Responsible Index Fund, is structured identically, except that it invests in the Calvert U.S. Large Cap Value Responsible index.

According to the SEC filing, Calvert also subscribes to several programs that guide the fund’s investments. Its high social impact investments invests up to 1% of the fund’s net assets in community investment notes issued by the Calvert Social Investment Foundation, a non-profit organization that issues notes as a way to raise assets for investing in non-profit or not-for-profit community development organizations, community development banks, cooperatives and social enterprises that focus on low-income housing, economic development, business development and other social and environmental considerations in urban and rural communities that may lead to a more just and sustainable society in the U.S. and around the globe.

A second program managed by Calvert is its special equities investment program, which allows the fund to promote especially promising approaches to sustainable and socially responsible investment goals through privately placed investments. Like the high social impact investments program, the special equities program is allocated 1% of the fund’s net assets for investments.

Calvert does not include in either fund’s underlying index any companies that produce tobacco or weapons that violate international humanitarian law as well as those directly supporting governments under sanction for grave human rights abuses such as genocide.

Natalie A. Trunow and Matthew Moore will serve as the portfolio managers of both funds.

The funds will each offer class A, class C and class Y shares. The ticker symbols have not yet been announced.

For each fund, class A shares will be subject to a maximum sales charge of 4.75%, and class C shares will be subject to a maximum deferred sales charge of 1%.

Management fees and total annual fund operating expenses have not yet been determined.

Bethesda. Md.-based Calvert Investment Management, Inc. will serve as the investment adviser.

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