Portfolio Commentary - Calvert G

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                                         Calvert Global Alternative Energy Fund
                                         Calvert Global Alternative Energy Fund (Class A shares at NAV)
                                         returned -3.92% during the quarter. The Fund underperformed its
                                         benchmark, the Ardour Global Index, which returned -0.47% over
                                         the same period. Sector selection was the primary factor behind the
                                         Fund’s underperformance of the benchmark.

                                         Market Review
                                         In 2009, October’s announcements of third-quarter corporate earnings were
                                         by and large ahead of expectations for the broad market, driven primarily by
                                         cost-cutting initiatives. While third-quarter earnings reports for the alternative
                                         energy sector generally came in ahead of expectations, there were some higher-
Jens Peers                               profile companies that disappointed the market either through an earnings miss
Portfolio Manager, KBC Asset             or over 2010 earnings guidance.
Management International Ltd.
                                         During the months of November and December, the alternative energy sector
                                         benefited from the improving global economic environment as well as the
                                         continued supportive monetary stance taken by global central bank policymakers.
                                         However, credit remained tight, unemployment was still rising, and there was no
                                         clear sign of a pick-up in consumer spending in the fourth quarter.

                                         On the positive side, economic data in the United States, Europe, and Asia were at
                                         overall levels that the markets viewed positively as it became apparent that the
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                                            historical fund performance

                                            Average Annual Total Returns as of 12/31/2009. Inception Date 5/31/2007.
                                            Calvert global alternative                                                                       SinCe
                                            energy Fund                             Qtr      ytd     1yr      3yrS      5yrS      10yrS    inCeption

                                            a shares at naV                         -3.92% 23.04% 23.04%      n/a       n/a       n/a      -14.36%
                                            a shares max load of 4.75%              -8.48   17.15   17.15     n/a       n/a       n/a      -15.96
                                            Ardour Global Index                     -0.47   23.34   23.34     N/A       N/A       N/A      -14.24
                                            Source: Calvert Performance Analytics
                                            Gross expense ratio: 2.23%. Net expense ratio: 1.85%. Performance data quoted already
                                            reflects deduction of fund operating expenses. Net expense ratio reflects contractual fee
                                            waiver and/or expense reimbursement through January 31, 2010.
                                            The performance data quoted represents past performance, which does not guarantee
                                            future results. The investment return and principal value of an investment will fluctuate so
                                            that an investor’s shares, when redeemed, may be worth more or less than their original
                                            cost. Current performance may be higher or lower than the performance data quoted.
                                            Indexes reflect no deductions for fees or expenses. An investor cannot invest directly in
                                            an index. Visit to obtain performance data current to the most recent

                                May Lose Value. Not FDIC Insured. Not a Deposit. No Bank Guarantee. Not NCUA/NCUSIF Insured. No Credit Union Guarantee.
global economy had emerged from a recession. This formed       rose following the publication of its twice-yearly update on
the basis for a continued preference for asset classes with    the platinum markets. The review confirmed stronger than
relatively more risk, namely equities.                         expected 2009 demand and an improved outlook for 2010.
                                                               Shares of Ceramic Fuel Cells fell in the fourth quarter following
In December, the Chinese government introduced a               a meteoric rise in their price since the company’s offering of
new law to boost the use of renewable energy. The new          new shares in early March. News about the stock has been
law requires power grid operators to buy all electricity       positive, and we expect it to trade higher from here.
produced by renewable energy generators, which should
boost the overall proportion of China’s energy that comes      In addition, the Fund had more exposure to the poorly
from renewable sources.                                        performing Utilities sector than the Index. This more
                                                               defensive sector lagged the broad market during the
The U.N. Climate Change Conference was held in                 quarter. Among the negative contributors in Utilities was
Copenhagen in December 2009. The summit was largely            FPL Group, the largest wind-farm operator in the United
a disappointment, but it did represent a small step in the     States, which lowered its earnings expectations for 2009
right direction. It resulted in Brazil, China, India, South    due to poor wind resources in the quarter.
Africa, and the United States drafting the Copenhagen
Accord. While not legally binding, the Accord does endorse     In contrast, stock selection made an overall positive
the continuation of the Kyoto Protocol, which ends in 2012.    contribution to the Fund’s performance relative to the
                                                               benchmark. The largest positive contribution in the Wind
Portfolio Review                                               sector came from the Fund’s relative underweight to Vestas
                                                               Wind Systems. This stock carries a weight of more than 9%
The Fund’s long-term strategic weightings for the              in the Index. Despite positive third-quarter earnings, Vestas
renewable energy sectors remained unchanged during             disappointed the market as a result of order backlogs for all
the quarter. Our most significant tactical decision for the    turbine manufacturers.
quarter was the continuation of the overweight position
in the Wind sector. Within the sector, our preference was      Outlook
for wind farm developers with high exposure to the U.S.
market, such as Iberdrola Renovables and EDP Renovavies.       We expect a continuation of the global economic and market
                                                               recovery in 2010, but we also foresee a number of challenges
At the start of the quarter, we had continued to               along the way. Government and central bank emergency
underweight the Solar sector on expectations that              policies in the form of monetary and fiscal stimulus measures
slower capacity growth in the first quarter of 2010 could      continue to support the world economy. Governments will
potentially lead to further drops in module prices. However,   only look to unwind these measures when it becomes clear
during November we increased our weighting as visibility       that the recovery is sustainable—this will require clear signs
improved for the first half of 2010. Comments from leading     of top-line growth and employment creation. As a result,
cell and module manufacturers confirmed the strong             these emergency measures are likely to stay in place for the
demand from Germany in the fourth quarter as well as           first half of 2010, resulting in positive economic growth and
the first quarter of 2010. The Fund’s top holdings in the      ultimately gains from equities. This positive macroeconomic
Solar sector included MEMC and Wacker Chemie. We also          backdrop will provide strong support for companies active in
maintained the Fund’s overweight to the Wind sector on         the alternative energy industry.
expectations that it would benefit from the cash grant
program in the United States.                                  We expect various countries to make regulatory decisions
                                                               over the coming months that should also prove to be
The Fund’s underperformance of the benchmark during            positive for companies involved in alternative energy. In
the quarter stemmed primarily from its sector allocations.     China, there may be news of a federal feed-in-tarriff for the
Relative to the Index, the Fund had an underweight to the      Solar sector, while in Germany changes to the current feed-
Energy Efficiency sector, which was the top-performing         in-tarriff is under discussion. Meanwhile, we are hopeful
sector in the Index for the quarter.                           that the United States will pass a climate change bill with a
                                                               renewables portfolio standard.
In addition, the Fund was overweight the Fuel Cells sector,
which was the weakest-performing sector in the Index for       We continue to believe that the fundamentals of the Wind
the quarter. However, the Fund did benefit from positive       sector are the most favorable of any alternative energy
stock selection within Fuel Cells. Shares of Johnson Matthey   sector. While the pace of a pick-up in new orders has
been slower than anticipated, we believe that an end-
market recovery is under way. In December, the Spanish
government announced the renewable energy projects that
have been approved. This government notification should
unlock turbine order and shipment flow in Spain, which has
been largely frozen since May. Similarly, legislation put in
place in the United States and China in 2009 should support
wind farm development in both of these countries in
2010. We have increased our exposure to the two leading
wind turbine manufacturers—Vestas Wind Systems and
Gamesa—as we believe these are a good way to benefit
from the improving wind industry.

Overall, we remain focused on the long-term winners, low-
cost producers, and companies with proven technologies in
alternative energy. n

This commentary represents the opinions of its author as of 12/31/09, and may change based on market and other conditions. The author’s opinions are not intended to forecast future
events, guarantee future results, or serve as investment advice.

As of December 31, 2009, Calvert Global Alternative Energy Fund’s holdings included. Iberdrola Renovables (5.92% of the Portfolio), EDP Ren-
ovavies (3.91%), MEMC (3.61%), Wacker Chemie (4.12%), Johnson Matthey (2.19%), FPL Group (4.92%), Vestas Wind Systems (4.95%), and Gamesa
(4.29%). Calvert may or may not still invest in, and is not recommending any action on, companies listed. For the most recently available infor-
mation on individual holdings in each Calvert sustainable and responsible equity fund, visit
Calvert Global Alternative Energy Fund is subject to the risk that stocks that comprise the energy sector may decline in value, and the risk that
prices of energy (including traditional sources such as oil, gas, or electricity) or alternative energy may decline. The stock markets in which the
Fund invests may also experience periods of volatility and instability. In addition, shares of the companies involved in the energy industry have
been more volatile than shares of companies operating in other, more established industries. Consequently, the Fund may tend to be more
volatile than other mutual funds. Lastly, foreign investments involve greater risks than U.S. investments, including political and economic risks
and the risk of currency fluctuations.
For more information on any Calvert fund, please contact your financial advisor, call Calvert at 800.368.2748, or visit for a free
prospectus. An institutional investor should call Calvert at 800.327.2109. An investor should consider the investment objectives, risks, charges and
expenses of an investment carefully before investing. The prospectus contains this and other information. Read it carefully before you invest or
send money.
Calvert funds are available at NAV for RIAs and Wrap Programs. Not all funds available at all firms.
Calvert mutual funds are underwritten and distributed by Calvert Distributors, Inc., member FINRA, subsidiary of Calvert Group, Ltd.

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