Press Release: Calamos Hires Seasoned ESG Management Team (click here)
Strategy Objective
The Calamos US Sustainable Equities Strategy employs an integrated, fundamental and proprietary ESG screening process, benchmarked to the S&P 500 Index, to evaluate and select what we deem are the highest-quality, ESG-adherent growth opportunities throughout the United States and across market capitalizations.
Key Differentiators
- Investment Team has managed ESG funds and portfolios for more than 20 years.
- We believe that the best way to identify sustainable growth is to consider all aspects of a company's quality profile, including environmental, social, and governance factors that are too often ignored and can represent substantial investment risks.
- We take a flexible approach to opportunities and believe that attractive investments are found across sectors and market capitalizations.
- We believe that maximum value is created over the long term. As such, we look to hold investments across business and economic cycles. This promotes sustainable growth with lower transaction costs and tax efficiency.
- Markets don't always get it right. Therefore, we look to take advantage of short-term market inefficiencies to establish positions or add to existing investments.
- We will sell an investment in cases of valuation adjustments, availability of more attractive alternatives, or breakdowns in financial fundamentals or ESG performance.
Strategy Details
As of 6/30/24| Inception Date: | 2/01/20 |
|---|---|
| Strategy Assets*: | $9.4 M |
| Benchmark: | S&P 500 Index |
Portfolio
Sector Weightings
| Sector | % of Assets | S&P 500 Index | Under/Overweight % |
|---|---|---|---|
| Information Technology | 35.2% | 32.4% | |
| Health Care | 12.0% | 11.7% | |
| Industrials | 10.5% | 8.1% | |
| Financials | 10.0% | 12.4% | |
| Communication Services | 9.3% | 9.3% | |
| Consumer Discretionary | 8.1% | 10.0% | |
| Consumer Staples | 5.9% | 5.8% | |
| Materials | 4.4% | 2.2% | |
| Utilities | 2.5% | 2.3% | |
| Real Estate | 2.0% | 2.2% | |
| Energy | 0.0% | 3.6% | |
| Other | 0.0% | 0.0% | |
Representative Portfolio Ten Largest Holdings
| Company | Sector | % |
|---|---|---|
| Microsoft Corp. | Information Technology | 8.2 |
| Alphabet, Inc. - Class A | Communication Services | 7.2 |
| Apple, Inc. | Information Technology | 5.9 |
| NVIDIA Corp. | Information Technology | 4.9 |
| Taiwan Semiconductor Mfg (ADR) | Information Technology | 4.1 |
| Intuit, Inc. | Information Technology | 2.5 |
| TJX Companies, Inc. | Consumer Discretionary | 2.3 |
| Novo Nordisk A/S (ADR) | Health Care | 2.3 |
| Applied Materials, Inc. | Information Technology | 2.3 |
| Verizon Communications, Inc. | Communication Services | 2.1 |
Characteristics
| Name | Calamos Portfolio | S&P 500 Index |
|---|---|---|
| Number of Holdings | 52 | 503 |
| Portfolio Turnover (12 months) | 23.3% | N/A |
| Median Market Cap | $96.9 B | $34.9 B |
| Weighted Avg. Market Cap | $916.2 B | $1009.2 B |
| ROIC | 26.2% | 24.8% |
| Debt/Capital | 41.9% | 43.0% |
MSCI ESG Company Rating
| Category | Representative Portfolio % | S&P 500 Index % |
|---|---|---|
| AAA | 32.0928424597 | 12.3631224036 |
| AA | 29.9300163984 | 26.8985629082 |
| A | 23.0258509517 | 28.035235405 |
| BBB | 14.9512916803 | 25.1348108053 |
| BB | 0 | 4.9193404615 |
| B | 0 | 2.5415977463 |
| CCC | 0 | 0.0240740861 |
| N/A | 0 | 0.083254301 |
Performance
Annualized Total Returns
| Name | 1-Year | 3-Year | Since Inception (2/01/20) |
|---|---|---|---|
| US Sustainable Equities SMA (Gross) | 21.09% | 6.61% | 12.81% |
| US Sustainable Equities SMA (Net) | 19.59% | 5.30% | 11.43% |
| S&P 500 Index | 24.56% | 10.01% | 14.48% |
Calendar Year Returns
| Name | Qtr ending Jun 24 | YTD 2024 | 2023 | 2022 | 2021 | 2/1/20 - 12/31/20 |
|---|---|---|---|---|---|---|
| US Sustainable Equities SMA (Gross) | 4.36% | 13.36% | 20.46% | -19.05% | 25.74% | 22.59% |
| US Sustainable Equities SMA (Net) | 4.03% | 12.65% | 18.98% | -20.05% | 24.18% | 21.22% |
| S&P 500 Index | 4.28% | 15.29% | 26.29% | -18.11% | 28.71% | 18.44% |
Past performance does not guarantee or indicate future results. Current performance may be lower or higher than the performance quoted. Portfolios are managed according to their respective strategies which may differ significantly in terms of security holdings, industry weightings, and asset allocation from those of the benchmark(s). Portfolio performance, characteristics and volatility may differ from the benchmark(s) shown.
Returns or Risk/Rewards statistics presented reflect the Calamos US Sustainable Equities SMA Composite, which is an actively managed, US focused composite that seeks long-term capital appreciation. The Composite invests primarily in the common stock of companies in the US that excel at managing environmental risks and opportunities, societal impacts and corporate governance (ESG) factors in addition to exhibiting attractive financial attributes and competitive advantages. On August 25, 2021 Calamos acquired Pearl Impact Capital LLC which has managed the strategy since its inception in 2020. Firm assets shown represent assets managed by Calamos Advisors and not assets managed by Pearl Impact Capital LLC. The Calamos US Sustainable Equities SMA Composite was formerly named the Calamos US Sustainable Equities Composite II. This name change became effective June 30, 2022. The Composite was created August 31, 2021, calculated with an inception date of February 1, 2020. Results include all fully discretionary advisory accounts, including those no longer with the Firm.
Unmanaged index returns, unlike fund returns, do not reflect fees, expenses or sales charges. Investors cannot invest directly in an index.
S&P 500 Index is generally considered representative of the US stock market.
Fees include the investment advisory fee charge by Calamos Advisors LLC. Returns greater than 12 months are annualized. Chart Data Sources: Calamos Advisors LLC.
Average annual total return measures net investment income and capital gain or loss from portfolio investments as an annualized average. All performance shown assumes reinvestment of dividends and capital gains distributions.
Vehicles & Minimums
Vehicles and Minimums
| Vehicle | Minimum | Availability |
|---|---|---|
| Separately Managed Accounts | $5 million | Available to new investors |
Literature
US Sustainable Equities SMA Strategy Fact Sheet
The US Sustainable Equities SMA Strategy fact sheet provides a snap shot of the investment team, the investment strategy, performance, composition, ratings and returns.
US Sustainable Equities SMA Strategy Performance Review
A discussion of the Calamos US Sustainable Equities SMA Strategy’s performance versus a benchmark, positioning, related market commentary, and outlook.
Nuclear Power: Understanding a Changing Frontier of Opportunity and Risk
The latest white paper from the Calamos Sustainable Equities Team highlights how nuclear power could provide a powerful zero-carbon tool to address the challenges of skyrocketing energy demand and climate change, provided that proper guardrails are in place to prevent current risks.
The Pendulum Swings on DEI Sentiment
Our sustainable equities team discusses the recent backlash against DEI programs, why human capital and labor management matter to a company’s success, and how its proprietary process seeks to differentiate between companies that authentically support human capital initiatives versus those that engage in “check-the-box” DEI efforts.
Calamos Sustainable Equities Engagement Survey Report
Our engagement strategy enables the Calamos Sustainable Equities team to request specific data points that align with our proprietary ESG process, build relationships with the companies in which we invest and advocate for better policies, practices and/or disclosures.
The Investment Case for Corporate Diversity
Studies have shown that companies with more diverse management teams and boards are more likely to outperform their less diverse counterparts, explains Beth Williamson, Head of Sustainable Equity Team Research. For more than 20 years, the Calamos Sustainable Equity Team has recognized that diverse companies can produce higher financial returns and have lower risk.
ESG Investing in China: The Calamos Sustainable Equity Team Approach
China’s ESG initiatives include many that are in line with those of the West and others that are unique to China. Chinese companies that understand the importance of ESG risks and opportunities can take advantage of “first-mover” competitive advantages, explains Co-Portfolio Manager Tony Tursich.
Environmental Investing: Risk and Opportunity
Drawing on nearly 25 years of ESG investing experience, Anthony Tursich discusses the philosophy of the Calamos Sustainable Equities Team and explains why environmental considerations are so important for understanding investment risk and opportunities.