Fund Description

The fund invests at least 80% of net assets (including borrowings) in bonds of any maturity and at least 80% in investment-grade debt (BBB- or higher or equivalent, or if unrated, comparable quality; if multiple ratings apply, the highest is used). It invests mainly in bonds of U.S. corporations, the U.S. Government or its agencies, and U.S. GSEs, and may invest in trust preferred securities, taxable municipal obligations, loans, and ABS and MBS (including CMOs and CMBS). Up to 20% may be in high-yield and distressed debt and up to 25% in foreign debt, including ADRs. It may use forward foreign currency exchange contracts to seek to hedge against the decline in the value of currencies in which its portfolio holdings are denominated against the U.S. dollar, buy securities when-issued or via forward commitments, invest in money market instruments, lend securities, and manage duration and interest-rate hedging with U.S. Treasuries and related futures. Selection combines fundamental and quantitative research with responsible investment criteria based on The Calvert Principles for Responsible Investment, and intends to focus on risk management and seek to preserve capital to the extent consistent with its investment objective, including maintaining broad issuer and industry diversification among its holdings.