NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Thursday, October 27, 2016

Eaton Vance has agreed to acquire the assets of the impact-investing firm Calvert Investment Management, a move that would give it a large presence in the growing field of socially and environmentally responsible investing.

The Boston-based asset manager (NYSE: EV) is buying Calvert’s more than $12 billion in assets from Ameritas Holdings for an undisclosed sum. Founded in 1976, Maryland-based Calvert was one of the first firms to focus on investing with social-good goals in mind.

Calvert’s liabilities are not part of the proposed deal. The firm has run into compliance problems in recent years — it agreed earlier this week to pay a $3.9 million penalty for overstating the value of its funds — but those issues will remain behind with Amertias, Eaton Vance said.

What Eaton Vance is taking on are funds that have consistently lost more money than they have taken in from investors. So far this year, Calvert’s family of funds has experienced more than $260 million in outflows, according to Morningstar.