BETHESDA, Md., July 20, 2017 /PRNewswire/ -- Calvert Research and Management (Calvert) has filed a registration statement with the U.S. Securities and Exchange Commission for a new exchange-traded managed fund investing in short-term income investments, the Calvert Ultra-Short Income NextShares (the "Fund"). The Fund will seek to maximize income, consistent with preservation of capital, by investing in short-term bonds and other income-producing securities. In selecting investments for the Fund, Calvert will be guided by The Calvert Principles for Responsible Investment, which provide a framework for considering environmental, social and governance factors.
"Calvert is dedicated to providing investors with efficient, innovative and responsible investment opportunities," said John Streur, President and Chief Executive Officer of Calvert. "We are excited to utilize the new NextShares structure to help achieve both a positive impact on society and favorable investment results."
NextShares, an innovative way to invest in actively managed strategies, offer the potential for benchmark-beating returns by applying their manager's proprietary investment research. As exchange-traded products, NextShares may offer cost and tax efficiencies that can enhance shareholder returns. The first NextShares fund began trading on the Nasdaq Stock Market LLC in February 2016. Funds from multiple sponsors have since been introduced across a range of assets classes, with more launches expected in the coming months.
"We are proud to partner with Calvert as the first company to bring responsible investing to their clients through NextShares," said Stephen W. Clarke, President of NextShares Solutions. "We are looking forward to working together to expand their product line-up to include NextShares."
Calvert Research and Management is a leader in Responsible Investing, with approximately $10.2 billion of mutual fund and separate account assets under management as of June 30, 2017. The company traces its roots to Calvert Investments, which was founded in 1976 and was the first to launch a socially responsible mutual fund that avoided investment in companies that did business in apartheid-era South Africa. Today, the Calvert Funds are one of the largest and most diversified families of responsibly invested mutual funds, encompassing actively and passively managed strategies, U.S. and international equity strategies, fixed-income strategies and asset allocation funds. Calvert Research and Management is a wholly owned subsidiary of Eaton Vance. For more information, visit calvert.com.
About NextShares Solutions and Eaton Vance
NextShares Solutions is a wholly owned subsidiary of Eaton Vance formed to develop and commercialize NextShares. Aspects of the operation of NextShares are protected intellectual property owned by NextShares Solutions. For more information, visit nextshares.com.
Eaton Vance (NYSE: EV) is a leading global asset manager whose history dates to 1924. With offices in North America, Europe, Asia and Australia, Eaton Vance and its affiliates managed $395.3 billion as of June 30, 2017 offering individuals and institutions a broad array of investment strategies and wealth management solutions. For more information, visit eatonvance.com.
The information in this press release is not complete and may be changed. These securities may not be sold until the registration statement filed with the U.S. Securities and Exchange Commission is effective. This press release is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any jurisdiction where the offer or sale would be prohibited.
About Risk: Investments rated below investment grade (typically referred to as "junk") are generally subject to greater price volatility and illiquidity than higher-rated investments. An imbalance in supply and demand in the income market may result in valuation uncertainties and greater volatility, less liquidity, widening credit spreads and a lack of price transparency in the market. Investments in foreign instruments or currencies can involve greater risk and volatility than U.S. investments because of adverse market, economic, political, regulatory, geopolitical or other conditions. In emerging countries, these risks may be more significant. As interest rates rise, the value of certain income investments is likely to decline. Investments in income securities may be affected by changes in the creditworthiness of the issuer and are subject to the risk of nonpayment of principal and interest. The value of income securities also may decline because of real or perceived concerns about the issuer's ability to make principal and interest payments. No fund is a complete investment program and you may lose money investing in a fund. The Fund may engage in other investment practices that may involve additional risks and you should review the Fund prospectus for a complete description.
The information contained herein is provided for informational purposes only, is not intended as investment or tax advice, and does not constitute a solicitation of an offer to buy or sell specific securities.
Shares of NextShares funds are normally bought and sold in the secondary market through a broker, and may not be individually purchased or redeemed from the fund. In the secondary market, buyers and sellers transact with each other, rather than with the fund. NextShares funds issue and redeem shares only in specified creation unit quantities in transactions by or through Authorized Participants. In such transactions, a fund issues and redeems shares in exchange for the basket of securities, other instruments and/or cash that the fund specifies each business day. By transacting in kind, a NextShares fund can lower its trading costs and enhance fund tax efficiency by avoiding forced sales of securities to meet redemptions. Redemptions may be effected partially or entirely in cash when in-kind delivery is not practicable or deemed not in the best interests of shareholders. A fund's basket is not intended to be representative of the fund's current portfolio positions and may vary significantly from current positions. As exchange-traded securities, NextShares can operate with low transfer agency expenses by utilizing the same highly efficient share processing system as used for exchange-listed stocks and ETFs.
Market trading prices of NextShares are linked to the fund's next-computed net asset value (NAV) and will vary from NAV by a market-determined premium or discount, which may be zero. Buyers and sellers of NextShares will not know the value of their purchases and sales until after the fund's NAV is determined at the end of the trading day. Market trading prices may vary significantly from anticipated levels. NextShares do not offer investors the opportunity to buy and sell intraday based on current (versus end-of-day) determinations of fund value. NextShares trade execution prices will fluctuate based on changes in NAV. Although limit orders may be used to control trading costs, they cannot be used to control or limit trade execution prices. As a new type of fund, NextShares have a limited operating history and may initially be available through a limited number of brokers. There can be no guarantee that an active trading market for NextShares will develop or be maintained, or that their listing will continue unchanged. Buying and selling NextShares may require payment of brokerage commissions and expose transacting shareholders to other trading costs. Frequent trading may detract from realized investment returns. The return on a shareholder's NextShares investment will be reduced if the shareholder sells shares at a greater discount or narrower premium to NAV than he or she acquired the shares. Commercial success of NextShares requires completion of enabling implementation technology and acceptance by market participants, which cannot be assured.
NextShares™ is a trademark of NextShares Solutions LLC. All rights reserved.
Before investing, investors should consider carefully the investment objectives, risks, charges and expenses of a NextShares Fund. This and other important information is contained in the prospectus and summary prospectus, which can be obtained from a financial advisor. Prospective investors should read the prospectus carefully before investing.
Calvert NextShares distributed by Foreside Fund Services, LLC.
SOURCE Calvert Research and Management