The Calvert Government Fund (ticker: CGVAX) seeks to provide a high level of current income while preserving capital, primarily through investment in debt securities issued or guaranteed by the U.S. government or its agencies or instrumentalities, according to the firm. It may also invest in futures contracts related to U.S. Government securities.
The new fund adds to Calvert’s taxable fixed-income lineup for a total of nine funds, and is managed by Calvert’s taxable fixed-income team led by Greg Habeeb, SVP and head of the taxable bond division at Calvert.
“We will apply a relative value strategy, which involves constantly comparing the appreciation potential and attractiveness of the securities held in the fund’s portfolio against those available in the marketplace and will employ an active trading strategy,” said Habeeb. “The fund will provide a low credit risk alternative for fixed-income investors.”
“The portfolio team will manage the fund’s duration and position its exposure along the yield curve to take advantage of market volatility and return opportunities. The portfolio management team applies multiple strategies to adjust the interest-rate sensitivity of the portfolio as market conditions fluctuate,” said Cathy Roy, CIO of Fixed Income at Calvert. “The addition of the fund allows shareholders and their advisers an opportunity to diversify their portfolios for the right mix of income, stability, and growth potential,” she added.