October 1, 2014
The Calvert Unconstrained Bond Fund (CUBAX) is the newest contribution in the popular “go anywhere” cutting-edge bond fund category. Unconstrained funds are not usually managed against a standard index, but rather tactically re-position to be best situated in changing markets.
The new Calvert fund is the only mutual fund in the nontraditional bond category to feature the incorporation of environmental, social and governance (ESG) analysis in its investment process.
“The Morningstar Nontraditional Bond category has been averaging $2.9 billion in net new flows monthly,” said Cathy Roy, CFA, Calvert’s Chief Investment Officer of Fixed Income and Co-Portfolio Manager of the Calvert Unconstrained Bond Fund. “The fund is flexible and designed to provide positive returns over a full market cycle.”
Fixed Income Strategist Steve Van Order noted the uncertainty over the federal funds rate, which is at a near-zero level: “Investors are anxious about interest rates, and this fund may help them to be positioned well regardless of what happens.”
An advantage of this fund is its ability to adapt to changing market environments through yield curve positioning, duration management, liquidity management, sector positioning and security selection.
“Our top-down macroecnomic analysis combined with rigorous bottom-up security selection helps us identify sectors and issuers with the best risk-adjusted return potential,” said Vishal Khanduja, CFA, Co-Portfolio Manager.
About Calvert Investments
Calvert Investments is a leading investment management company using sustainability as a platform to create value for investors. Calvert Investments had approximately $13.5 billion in assets under management as of September 15, 2014.
The individual investments of the Calvert Unconstrained Bond Fund may not perform as expected, and the Fund’s portfolio management practices may not achieve the desired result. The Fund is also subject to interest rate risk and credit risk. The Fund’s use of derivatives such as futures, options and swap agreements, can lead to losses, including those magnified by leverage, particularly when derivatives are used to enhance return rather than offset risk.