Active Super and Vision Super are now entering the home stretch of a drawn-out merger process that will create a new $29 billion fund with 170,000 member accounts.
The NZ Superannuation Fund has made half-a-dozen fresh investments over the previous few months across an eclectic range of strategies including US timber, a quant trend-follower and a life science specialist.
Eaton Vance agrees to buy big ESG manager
(pictured: John Streur)
Eaton Vance Corp announced last week its intention to acquire Calvert Investment Management, one of the oldest and largest specialist ESG managers in the US.
To be renamed Calvert Research and Management, the firm will come under the Eaton Vance affiliate umbrella whereby managers operate with a lot of autonomy but with some combined sales and marketing operations.
The boards of Calvert’s various mutual funds will recommend that their shareholders approve new investment advisory contracts with the Eaton Vance affiliate.
Calvert is a recognised leader in responsible investing, with approximately US$12.3 billion of under management in funds and separately managed accounts, as at September 30.
Its suite of strategies includes both active and passively managed US and international equities, fixed income and asset allocation funds managed in accordance with the “Calvert Principles for Responsible Investment”.
Calvert 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 has a long history in responsible investing. In 1982, the Calvert Social Investment Fund (now the Calvert balanced portfolio) was launched as the first mutual fund to oppose investing in South Africa’s apartheid system.
Other Calvert innovations include the first responsibly managed fixed income and international equity funds, and pioneering programs in shareholder advocacy, corporate engagement and impact investing.
John Streur, Calvert’s president and chief executive, said: “I am extremely pleased that Eaton Vance has chosen to make Calvert the centerpiece of its expansion in responsible investing. 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 US and internationally.”
Thomas Faust Jr., Eaton Vance’s chairman and chief executive, said: “By applying our management and distribution resources and oversight, we believe Eaton Vance can help Calvert become a meaningfully larger, better and more impactful company.”
Completion of the transaction, subject to various approvals, is expected by December 31, 2016. Terms of the transaction are not being disclosed.
Laurie Hylton, vice president and chief financial officer of the listed Eaton Vance, said the acquisition provided significant benefits to shareholders in both the short and long term.
“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. Reflecting the current profitability of acquired operations and anticipated cost savings, we also expect the transaction to be immediately accretive.”
Other Eaton Vance affiliates are Parametric, Hexavest and Atlanta Capital, which complement the Eaton Vance Management strategies for a group total of funds under management of US$343 billion, as at September 30. Eaton Vance and Parametric have offices in Australia and Asia, as well as North America and Europe.
