New Calvert Fund to Help Investors Address Climate Change
The Calvert Climate Change/Alternative Energy Survey, found that 76 percent of U.S. investors are worried about global warming and what climate change could mean in terms of major changes during their lifetime, and a further 85 percent of survey respondents said that they believed investments in alternative energy are a win-win in terms of helping the planet and being profitable. Despite those high numbers, only 16 percent of investors said they have discussed alternative energy investments with a financial advisor.
In response to these numbers, Calvert announced yesterday that it had created the Calvert Global Alternative Energy Fund to meet investor demand and environmental concern. The fund will seek out leaders in the alternative energy market both in the U.S. and abroad.
“We have listened to financial professionals and our shareholders, many of whom are interested in global alternative energy, and believe we have developed a fund that will meet their investment strategy needs,” said Steve Falci, Calvert’s Chief Investment Officer for equities. He added that the fund is targeted at “individual investors, advisors, and institutions who are looking for the long-term, strategic benefits of including an allocation to global alternative energy in their portfolios.”
In a white paper Calvert released on alternative energy investments, co-authors Paul A. Hilton and Jens Peers write that “alternative energy has captured public, media, and political attention as a potential solution to the pressing issue of climate change – which is widely believed to be not only threatening the environment, but adversely affecting companies, industries,and whole economies.” As a result, they add, “the prospects for alternative energy sources, including wind, solar, and bio-based energy appear bright, and potentially profitable, over the long term.”
Some of the results from this survey serve to back up these assertions. Calvert cites the low number of investors in alternative energy stocks as evidence of a drastically underserved investor demand for these investment options. Additionally, 71 percent of survey respondents said they would consider investing in a mutual fund that clearly focused on alternative energies.
The survey, which was conducted for Calvert by the Opinion Research Corporation, found that interest in alternative energy investment also spans what is normally a wide gaps in the beliefs of SRI-oriented and non-SRI investors. 87 percent of SRI investors and 81 percent of non-SRI investors expressed support for alternative energy investments, and along political affiliation lines, 82 percent of Republicans, 90 percent of Democrats and 87 percent of Independents all said they were interested in these kinds of investment strategies.