Calvert hires Hermes to enhance company engagement

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Global managers Calvert Research and Management and Hermes Investment Management’s ‘Equity Ownership Services’ arm, the stewardship and engagement unit of Hermes, have agreed to an arrangement to supplement Calvert’s in-house corporate engagement program.

Hermes EOS is a global leader in providing corporate engagement services to asset owners and managers across equity and fixed income asset classes on ESG issues. Hermes EOS will provide engagement, consultation and reporting services to Calvert.

Hans-Christoph Hirt, head of Hermes EOS, said: “Hermes EOS has one of the largest global stewardship resources in the world and we are excited to be working with Calvert to effectively engage corporates worldwide.”

John Streur, president and chief executive of Calvert, who visited Australia last month, said: “Calvert’s advocacy efforts outside the US are expanding as we increase investments in non-US companies. Our agreement with Hermes EOS provides Calvert immediate access to engagement activities outside the US and further strengthens our current engagement in the US.”

Calvert, which lays claim to having launched the first mutual fund in the US to screen out companies which did business with South Africa, in 1982, during the country’s apartheid era, is a leader in responsible investing, with about US$14 billion under management.

The firm has one of the largest and most diversified families of responsibly invested mutual funds and mandates, encompassing actively and passively managed strategies, US and international equity strategies, income strategies and asset allocation funds.

It is a subsidiary of multi-affiliate manager Eaton Vance.

Hermes EOS is one of the world’s leading stewardship services, currently advising on $454.7 billion on behalf of its clients. In 2017, the Hermes EOS team engaged with 659 companies on 1,704 environmental, social, governance, strategy, risk and communication issues and objectives.

Hermes Investment Management, which was set up by the British Telecom pension fund, is currently being taken over through the purchase of a controlling stake by US manager Federated Investors. During the tender process for the sale, interestingly, Eaton Vance and Australia’s Challenger both expressed interest in the deal, according to reports in London.

– G.B

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