Environmental, social and governance (ESG) asset manager Calvert Research and Management is looking to launch further funds, including fixed income passive offerings and an active global small cap strategy.
The firm was acquired by Boston-based asset manager Eaton Vance at the end of 2016 and plans to use the support of its new parent company to expand its product set and add staff.
The firm already offers a number of index funds, all equity strategies, including large-cap growth, core, value and mid-cap core strategies, as well as an ex-US developed markets passive fund.
Calvert chief executive John Streur told Citywire the firm was exploring adding fixed income index funds to the line-up as well as further equity offerings.
‘Our index funds are net positive, they are being used in models, and we’re going to build more of them,’ he said. ‘We are working to build additional equity and fixed income indexes. That is a propriety for us.’
He said the firm was also set to start offering its index strategies as separately managed accounts for institutional investors.
While the funds follow an index, Streur said their managers would not be passive when it came to shareholder engagement and proxy voting.
All the index funds are currently in a mutual fund format and Streur said the company was evaluating whether to make them available in other vehicles, such as exchange-traded funds (ETFs) or NextShares, an active ETF structure developed by parent Eaton Vance.
On the active side of things, he said there was a growing client demand for a global small cap strategy.
‘Clients are asking for that and we have capabilities in small cap so we are closely evaluating that. We are continuing to build out the passive but this [global small cap] is an area clients are asking about.’
Following the acquisition by Eaton Vance, Calvert has added to its distribution team with three hires and is currently in the process of adding to its investment team by recruiting four research analysts.