Eaton Vance Corp. has agreed to buy the assets of Calvert Investment Management Inc., a leading company in socially responsible investing funds, Eaton Vance announced Friday.
The new affiliate of Eaton Vance will be known as Calvert Research and Management. The purchase price was not disclosed. The deal, which is expected to be completed by the end of the year, is for assets only; liabilities will remain with the seller.
Calvert, which specializes in responsible investing, has $12.3 billion of fund and separate account assets under management.
The purchase expands Eaton Vance’s reach into socially responsible fund, company officials said.
“I am extremely pleased that Eaton Vance has chosen to make Calvert the centerpiece of its expansion in responsible investing,” says John Streur, president and CEO of Calvert. “By combining Calvert’s expertise in sustainability research with Eaton Vance’s investment capabilities and distribution strengths, we believe we can deliver best-in-class integrated management of responsible investment portfolios to investors across the U.S. and internationally.”
Calvert funds encompass actively and passively managed U.S. and international equity strategies, fixed-income strategies and asset-allocation funds managed in accordance with the Calvert Principles for Responsible Investment, according to the company. Calvert says it seeks to invest in companies that provide positive leadership in their business operations and overall activities that are material to improving societal outcomes.
Founded in 1976, Calvert Social Investment Fund (now Calvert Balanced Portfolio) was launched as the first mutual fund to oppose investing in South Africa’s apartheid system. Other Calvert funds include responsibly managed fixed income and international equity funds, and programs in shareholder advocacy, corporate engagement and impact investing.
“The acquisition of Calvert provides significant potential benefits to Eaton Vance shareholders, both long-term and near-term,” says Laurie G. Hylton, vice president and chief financial officer of Eaton Vance. “Calvert is a leading brand in one of the most promising categories of investing, and we expect to help them achieve substantial growth over time.”
Eaton Vance says it sees significant opportunities to grow Calvert's responsible investing business to serve a wider audience. It has identified potential growth opportunities including integrating the capabilities of the Eaton Vance Management and Eaton Vance Management International teams of equity and fixed income professionals with Calvert’s sustainability research and investment capabilities to provide best-in-class active management of responsibly invested mutual funds and separate accounts; and broadening Calvert’s distribution to cover defined contribution, institutional and global market opportunities on a comprehensive basis.
Calvert earlier this week settled a complaint with the Securities and Exchange Commission for mispricing bonds and collecting inflated fees. Calvert agreed to pay $3.9 million to the SEC and shareholders.