Calvert Water Fund: A Smart Investment Strategy?

The Calvert Global Water Fund is a natural resources fund that seeks to track the performance of the Calvert Global Water Research Index. The fund invests in equity securities of companies in the water industry or those significantly involved in water-related services or technologies. It has a Morningstar Medalist Rating of Silver, with an average management team, and fees in the second-highest quintile among peers. The fund has returned 3.74% over the past year, 4.87% over three years, 6.83% over five years, and 4.05% over the past decade. With an expense ratio of 1.24%, the fund's risk is above average compared to others in the same category.

The fund's performance and historical returns

The Calvert Global Water Fund has returned 3.74% over the past year, 4.87% over the past three years, 6.83% over the past five years, and 4.05% over the past decade. The fund's performance is measured against the Calvert Global Water Research Index, which includes stocks of companies that manage water use sustainably or facilitate the move to a more sustainable economy.

The fund's net expense ratio is 1.24%, which is slightly below the category average of 1.29%. However, fees are considered a weakness, as they are within the second-highest quintile among peers. The fund's management team is rated as average, and it carries a Morningstar Medalist Rating of Silver.

The fund's top holdings as of June 30, 2024, include American Water Works Co Inc, Veolia Environnement SA, and Essential Utilities Inc. The fund's performance may fluctuate due to economic and financial events and may not always match its index due to various factors such as fund expenses, regulatory policies, and market volatility.

Past performance is not a guarantee of future results, and investors should be aware that share values may be worth more or less than their original cost when redeemed.

The fund's investment objective and strategies

The Calvert Global Water Fund seeks to track the performance of the Calvert Global Water Research Index. The fund's investment objective is to achieve growth of capital through investment in equity securities of companies active in the water-related resource sector. The fund normally invests at least 80% of its net assets in equity securities of US and non-US companies whose main business is in the water industry or that are significantly involved in water-related services or technologies.

The fund employs corporate responsibility standards and strategies and focuses on companies that manage water use in a sustainable manner or that are actively engaged in expanding access to water, improving water quality, promoting efficient use of water, or providing solutions to other global water challenges.

The fund has a Morningstar Medalist Rating of Silver, indicating a sensible, clearly defined, and repeatable performance objective and investment process. The management team is rated as average, and the fund's fees are considered a weakness, priced within the second-highest quintile among peers.

The fund's total net assets are valued at around $233.4 million, with an expense ratio of 1.24%. The fund has returned 3.74% over the past year, 4.87% over three years, 6.83% over five years, and 4.05% over the past decade.

The fund's management team

The Calvert Global Water Fund's management team is rated Average by Morningstar, but a solid investment process still helps this strategy retain its Morningstar Medalist Rating of Silver. The team is led by Tom, a managing director and head of investment management at Parametric Portfolio Associates LLC. He has been with the company since 1998 and has a B.S. in electrical engineering from the University of Washington and an MBA from the University of Chicago Booth School of Business.

Jennifer, who has a B.A. in economics and a minor in mathematics from Colgate University, is responsible for leading the Centralized Portfolio Management (CPM) Team. She joined Parametric in 2005 and previously worked as an investment associate at Merrill Lynch for five years.

Gordon, who has an MBA and a B.S. in economics from the University of Washington, is the Managing Director, Advisor Channel Portfolio Management for Parametric. He joined the company in 2004 after working at UBS Financial Services.

The fund's investment process is sensible, clearly defined, and repeatable, according to Morningstar. The strategy's fees, however, are a weakness, as they are priced within the second-highest quintile among peers.

The fund's fees and expenses

The Calvert Global Water Fund has an expense ratio of 1.24%, which is below average compared to other funds in the same category. The average category expense ratio is 1.29%. The fund's distribution fee level is average.

The fund has a maximum sales charge of 5.25%. The fund's fees are considered a weakness, as they are priced within the second-highest quintile among peers.

The fund's total net assets are valued at $233.4 million, with total assets of 608.5 million.

The fund's risk considerations

The Calvert Global Water Fund is subject to various risks that prospective investors should consider before investing. These risks include economic and financial events, market volatility, regulatory policies, high portfolio turnover, and the use of leverage. The fund's performance may not match or correlate with its index due to these factors and could cause it to underperform compared to funds employing an active strategy.

The fund concentrates its investments in companies in the water industry, which means the value of fund shares may fluctuate more than a more broadly diversified fund. Equity securities held by the fund are also sensitive to stock market volatility, with smaller companies being subject to greater price fluctuations, limited liquidity, higher transaction costs, and higher investment risk.

Foreign investments or currencies can carry greater risk and volatility than US investments due to adverse market, economic, political, regulatory, geopolitical, and currency exchange rate conditions.

The fund primarily invests in responsible investments, which carries the risk that it may underperform funds without such a strategy under certain market conditions. Additionally, the fund may be exposed to liquidity risk when trading volume, lack of a market maker or trading partner, large position size, market conditions, or legal restrictions impair its ability to sell particular investments at advantageous prices.

The impact of the coronavirus on global markets could also adversely affect the fund's performance. As with any investment, there is a risk of losing money, and the fund may engage in other practices that carry additional risks, as outlined in the fund prospectus.

Frequently asked questions