Calvert Core Bond Fund Class R6 (CLDRX)

Overview

The company operates as an investment fund focusing on a diversified portfolio of debt securities. It is designed for investors looking to invest in a mix of investment grade and high-yield debt instruments primarily denominated in U.S. dollars. With a strategy that allocates a majority of its assets in investment grade debts, the fund aims to provide a balanced approach to income generation and capital preservation. The inclusion of a small proportion of high-yield "junk bonds" and distressed instruments offers the potential for higher returns, albeit with higher risks. Furthermore, the fund's ability to invest in U.S. dollar-denominated foreign debt securities and ADRs allows for a modest diversification into international markets, which could enhance returns while spreading investment risk.

Products and Services

• Investment Grade Debt Securities

  The fund invests a significant portion of its assets in investment grade debt securities, which are U.S. dollar-denominated. Investment grade securities are deemed to have a lower risk of default compared to lower-rated securities, making them a cornerstone for investors seeking stability and reliable income.

• High-Yield Debt Instruments

  Up to 5% of the fund's net assets may be allocated toward high-yield debt instruments, also known as "junk bonds". These securities offer higher interest rates due to their higher risk of default. The fund's involvement in high-yield debts introduces a balance, aiming to enhance overall portfolio returns while managing risk exposure.

• Distressed Instruments

  The fund has the flexibility to invest in distressed instruments that are in default. While these investments carry significant risk, they also present opportunities for substantial returns if the underlying companies recover financially. This component of the fund's strategy is designed for experienced investors who can tolerate a higher degree of risk.

• U.S. Dollar-Denominated Foreign Debt Securities

  Up to 25% of the fund's assets can be invested in foreign debt securities that are denominated in U.S. dollars. This allows the fund to diversify its portfolio by tapping into international markets, spreading risk, and potentially capturing gains from global economic trends.

• American Depositary Receipts (ADRs)

  The fund's portfolio may include ADRs, which are stocks that represent shares in foreign companies but are traded on U.S. exchanges as if they were U.S. stocks. This offers investors an accessible route to investing in foreign companies while still dealing in U.S. dollars, diversifying the fund’s investment strategy further.