More emphasis on corporate defined contribution plans is part of the growth strategy of Calvert Investments Inc. under new President and CEO John Streur.
Institutional assets now account for $5 billion of Bethesda, Md.-based Calvert's total $13.5 billion under management. Mr. Streur took over Calvert leadership Jan. 1.
“It's too early for me to make that forecast” on how much the target is for institutional growth projections, said Mr. Streur in an interview, giving a perspective about both Calvert's prospects and asset owner transformation on the issue of socially responsible investing.
But he noted: “The corporate-sponsored (defined contribution) plan is a great source of business for us. There has been and continues to be a growing interest in adding responsible investment options to the DC plans. More and more companies have corporate social responsibility offices, (corporate social responsibility) reports, corporate social responsibility programs.”
“So companies themselves have identified the need to be a responsible player relevant to the environment, relevant to society and as a core business strategy of their own,” he added. “So it makes great sense for those companies to add these types of investment options to their DC plans.”
Calvert manages $3.5 billion for defined contribution plans in its mutual funds. Mr. Streur declined to name any clients.
On the defined benefit side, Mr. Streur said: “I can't say that the corporate DB players in the U.S, from my own experience, have been a big source of business.”
Calvert has some defined benefit relationships, but most of its retirement assets are on the defined contribution side.
In its new marketing outreach, Calvert intends to create a position in institutional business development, a process nearing completion, said Mr. Streur, who was president, director and principal of Portfolio 21 Investments Inc., whose investment and client service was merged into Boston-based Trillium Asset Management LLC. At Calvert, Mr. Streur succeeded Barbara J. Krumsiek, who retired. Calvert is a unit of Ameritas Life Insurance Corp., Lincoln, Neb.