Eaton Vance to acquire responsible investment firm

Killian Plastow

— 1 minute read

25 October 2016

Global asset manager Eaton Vance has entered into an agreement to acquire the business assets of Calvert Investment Management.

The company said completion of the transaction is expected by 31 December 2016, pending Calvert shareholder approval of the new investment advisory agreements and other conditions.

Eaton Vance chief financial officer Laurie Hylton said the acquisition had “significant potential benefits” to the company.

“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,” she said

“Reflecting the current profitability of acquired operations and anticipated cost savings, we also expect the transaction to be immediately accretive.”

The acquisition has the potential for Calvert Investment Management to “become a meaningfully larger, better and more impactful company”, according to Eaton Vance chief executive Thomas Faust.

“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 U.S. and internationally,” he said.

“Eaton Vance is the ideal partner to help Calvert fulfill its mission to deliver superior long-term performance to clients and achieve positive impact.”

The board of trustees for Calvert mutual funds have voted to recommend the approval of investment advisory contracts with a newly formed Eaton Vance affiliate - to operate as Calvert Research and Management - to shareholders if the transaction is consummated.

Read more:

Good year for emerging markets: VanEck

AZ NGA firm acquires CBA-aligned practice

Forget the 'new normal', says Montgomery

Australian equities facing 'price adjustment'

Carbon not priced into equities, warns AXA IM