SEC REGISTRATION NOS.
333-34122 AND 811-09877
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-1A
REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OF 1933
PRE-EFFECTIVE AMENDMENT NO. 3 XX
AND/OR
REGISTRATION STATEMENT UNDER THE
INVESTMENT COMPANY ACT OF 1940
AMENDMENT NO. 3 XX
CALVERT SOCIAL INDEX SERIES, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN CHARTER)
4550 MONTGOMERY AVENUE
SUITE 1000N
BETHESDA, MARYLAND 20814
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)
REGISTRANT'S TELEPHONE NUMBER: (301) 951-4800
WILLIAM M. TARTIKOFF, ESQ.
4550 MONTGOMERY AVENUE
SUITE 1000N
BETHESDA, MARYLAND 20814
(NAME AND ADDRESS OF AGENT FOR SERVICE)
IT IS PROPOSED THAT THIS FILING WILL BECOME EFFECTIVE
___IMMEDIATELY UPON FILING ___ON (DATE)
PURSUANT TO PARAGRAPH (B) PURSUANT TO PARAGRAPH (B)
___60 DAYS AFTER FILING ___ON (DATE)
PURSUANT TO PARAGRAPH (A) PURSUANT TO PARAGRAPH (A)
THE REGISTRANT HEREBY AMENDS THIS REGISTRATION STATEMENT ON SUCH DATE
OR DATES AS MAY BE NECESSARY TO DELAY ITS EFFECTIVE DATE UNTIL THE REGISTRANT
SHALL FILE A FURTHER AMENDMENT WHICH SPECIFICALLY STATES THAT THIS REGISTRATION
STATEMENT SHALL THEREAFTER BECOME EFFECTIVE IN ACCORDANCE WITH SECTION 8(A) OF
THE SECURITIES ACT OF 1933 OR UNTIL THE REGISTRATION STATEMENT SHALL BECOME
EFFECTIVE ON SUCH DATE AS THE COMMISSION ACTING PURSUANT TO SAID SECTION
8(A) MAY DETERMINE.
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PROSPECTUS
, 2000
CALVERT SOCIAL INDEX FUND
ABOUT THE FUND
2 INVESTMENT OBJECTIVE AND STRATEGY
5 FEES AND EXPENSES
7 INVESTMENT PRACTICES AND RISKS
11 SHAREHOLDER ADVOCACY AND SOCIAL RESPONSIBILITY
ABOUT YOUR INVESTMENT
11 ABOUT THE ADVISOR
12 ADVISORY FEES
12 HOW TO BUY SHARES
13 CHOOSING A SHARE CLASS
15 CALCULATION OF CDSC/WAIVER
16 DISTRIBUTION AND SERVICE FEES
16 ACCOUNT APPLICATION
17 IMPORTANT - HOW SHARES ARE PRICED
17 WHEN YOUR ACCOUNT WILL BE CREDITED
18 OTHER CALVERT GROUP FEATURES
(EXCHANGES, MINIMUM ACCOUNT BALANCE, ETC.)
21 DIVIDENDS, CAPITAL GAINS AND TAXES
23 HOW TO SELL SHARES
25 EXHIBIT A- REDUCED SALES CHARGES (CLASS A)
28 EXHIBIT B- SERVICE FEES AND
OTHER ARRANGEMENTS WITH DEALERS
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION (SEC) OR ANY STATE SECURITIES COMMISSION, NOR HAS THE SEC OR
ANY STATE SECURITIES COMMISSION PASSED ON THE ACCURACY OR ADEQUACY OF THIS
PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
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CALVERT SOCIAL INDEX FUND
OBJECTIVE
THE FUND SEEKS TO MATCH THE PERFORMANCE OF THE CALVERT SOCIAL INDEX, WHICH
MEASURES THE INVESTMENT RETURN OF LARGE- AND MID-CAPITALIZATION STOCKS.
PRINCIPAL INVESTMENT STRATEGIES
THE FUND EMPLOYS A PASSIVE MANAGEMENT STRATEGY DESIGNED TO TRACK, AS CLOSELY AS
POSSIBLE, THE PERFORMANCE OF THE CALVERT SOCIAL INDEX. THE FUND INTENDS TO USE
A REPLICATION INDEX METHOD, INVESTING IN EACH STOCK IN THE INDEX IN ABOUT THE
SAME PROPORTION AS REPRESENTED IN THE INDEX ITSELF. HOWEVER, BECAUSE THE FUND IS
NEW AND JUST BEGINNING OPERATIONS, IT WOULD BE VERY EXPENSIVE TO BUY AND SELL
ALL OF THE STOCKS HELD IN THE INDEX. THUS, UNTIL THE FUND'S ASSETS REACH A
CERTAIN MINIMUM ASSET LEVEL, IT WILL USE A SAMPLING TECHNIQUE OF INDEXING,
RATHER THAN THE REPLICATION METHOD. THIS MEANS THAT RATHER THAN BUY EACH STOCK
IN THE INDEX, IT WILL USE A COMPUTER PROGRAM TO INVEST IN A REPRESENTATIVE
SAMPLE OF STOCKS FROM THE INDEX THAT WILL RESEMBLE THE FULL INDEX IN TERMS OF
INDUSTRY WEIGHTINGS, MARKET CAPITALIZATION, PRICE/EARNINGS RATIO, DIVIDEND
YIELD, AND OTHER PORTFOLIO CHARACTERISTICS. ONCE THE FUND REACHES APPROXIMATELY
$20,000,000 IN ASSETS, IT WILL STOP USING THE SAMPLING TECHNIQUE AND REPLACE IT
WITH THE PERMANENT STRATEGY OF THE REPLICATION METHOD DISCUSSED ABOVE.
THE CALVERT SOCIAL INDEX
THE CALVERT SOCIAL INDEX MEASURES THE PERFORMANCE OF THOSE COMPANIES THAT MEET
THE SOCIAL INVESTMENT CRITERIA SELECTED FROM THE UNIVERSE OF APPROXIMATELY THE
1,000 LARGEST U.S. COMPANIES, BASED ON TOTAL MARKET CAPITALIZATION, LISTED ON
THE NYSE OR NASDAQ-AMEX. AS OF MAY 1, 2000, THERE WERE 468 COMPANIES IN THE
INDEX, THOUGH THIS NUMBER WILL CHANGE OVER TIME DUE TO COMPANY MERGERS OR
CHANGES DUE TO OUR EVALUATION OF AN ISSUER'S CONDUCT RELATIVE TO THE FUND'S
SOCIAL CRITERIA. THE INDEX IS RECONSTITUTED ONCE A YEAR BASED ON AN UPDATED LIST
OF THE 1000 LARGEST COMPANIES. THE INDEX IS ALSO REVIEWED QUARTERLY TO ADJUST
FOR SOCIAL CRITERIA, SECTOR WEIGHTINGS AGAINST THE 40% LIMITATION ON EXPOSURE TO
ANY ONE SECTOR, SHARE ADJUSTMENTS, ETC.
THE SOCIALLY RESPONSIBLE CRITERIA FOR THE INDEX ARE DESCRIBED BELOW. CALVERT
CONTINUOUSLY EVALUATES THE PERFORMANCE OF COMPANIES INCLUDED IN THE INDEX TO
ENSURE COMPLIANCE WITH THESE CRITERIA.
ENVIRONMENT: THE INDEX EXCLUDES COMPANIES THAT HAVE POOR ENVIRONMENTAL
RECORDS, INCLUDING SIGNIFICANT COMPLIANCE AND WASTE MANAGEMENT PROBLEMS. THE
INDEX INCLUDES COMPANIES THAT HAVE STRONG PROGRAMS THAT FOCUS ON REDUCING
OVERALL ENVIRONMENTAL IMPACT. THE INDEX EXCLUDES COMPANIES SIGNIFICANTLY
ENGAGED IN NUCLEAR POWER.
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LABOR RELATIONS: THE INDEX EXCLUDES COMPANIES THAT HAVE A RECORD OF
EMPLOYMENT DISCRIMINATION, ANTI-UNION ACTIVITIES OR PROVIDE UNSAFE WORKPLACES.
THE INDEX INCLUDES COMPANIES THAT HAVE A GOOD RECORD OF LABOR RELATIONS,
INCLUDING STRONG DIVERSITY PROGRAMS.
PRODUCT SAFETY: THE INDEX EXCLUDES COMPANIES THAT PRIMARILY ENGAGE IN
TOBACCO, ALCOHOL, FIREARMS OR GAMBLING. THE INDEX INCLUDES COMPANIES THAT
PRODUCE HEALTHY AND SAFE PRODUCTS AND SERVICES.
ANIMAL WELFARE: THE INDEX EXCLUDES COMPANIES THAT ABUSE ANIMALS THROUGH
METHODS OF FACTORY FARMING. THE INDEX INCLUDES CONSUMER PRODUCT COMPANIES THAT
DEMONSTRATE A REDUCTION IN THE USE OF ANIMAL TESTING, IF APPLICABLE.
MILITARY WEAPONS: THE INDEX EXCLUDES COMPANIES THAT ARE PRIMARILY ENGAGED IN
WEAPONS CONTRACTING WITH THE DEPARTMENT OF DEFENSE.
COMMUNITY RELATIONS: THE INDEX EXCLUDES COMPANIES THAT ARE NOT RESPONSIVE TO
COMMUNITIES WHERE THEY OPERATE. THE INDEX INCLUDES COMPANIES THAT ARE
RESPONSIBLE CITIZENS IN THESE COMMUNITIES.
HUMAN RIGHTS: THE INDEX EXCLUDES COMPANIES THAT DIRECTLY CONTRIBUTE TO HUMAN
RIGHTS VIOLATIONS WORLDWIDE. THE INDEX INCLUDES COMPANIES THAT HAVE ADOPTED
HUMAN RIGHTS STANDARDS IN THEIR OVERSEAS OPERATIONS.
INDIGENOUS
PEOPLES RIGHTS: THE INDEX EXCLUDES COMPANIES THAT ARE SIGNIFICANTLY ENGAGED
IN A PATTERN AND PRACTICE OF VIOLATING THE RIGHTS OF INDIGENOUS PEOPLE. THE
INDEX INCLUDES COMPANIES THAT ARE ENGAGED IN POSITIVE PORTRAYALS OF NATIVE
AMERICANS AND OTHER INDIGENOUS PEOPLES.
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PRINCIPAL RISKS
YOU COULD LOSE MONEY ON YOUR INVESTMENT IN THE FUND, OR THE FUND COULD
UNDERPERFORM THE STOCK MARKET FOR ANY OF THE FOLLOWING REASONS:
- THE STOCK MARKET OR THE CALVERT SOCIAL INDEX GOES DOWN
- THE INDIVIDUAL STOCKS IN THE FUND OR THE INDEX DO NOT PERFORM AS WELL AS
EXPECTED
- AN INDEX FUND HAS OPERATING EXPENSES; A MARKET INDEX DOES NOT. THE FUND -
WHILE EXPECTED TO TRACK ITS TARGET INDEX AS CLOSELY AS POSSIBLE WHILE SATISFYING
ITS INVESTMENT AND SOCIAL CRITERIA - WILL NOT BE ABLE TO MATCH THE PERFORMANCE
OF THE INDEX EXACTLY
AN INVESTMENT IN THE FUND IS NOT A BANK DEPOSIT AND IS NOT INSURED OR GUARANTEED
BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY.
(NO PERFORMANCE RESULTS ARE SHOWN FOR THE FUND SINCE IT WAS RECENTLY ORGANIZED.)
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FEES AND EXPENSES
THIS TABLE DESCRIBES THE FEES AND EXPENSES THAT YOU MAY PAY IF YOU BUY AND HOLD
SHARES OF THE FUND.
CLASS A CLASS B CLASS C
SHAREHOLDER FEES
(PAID DIRECTLY FROM YOUR ACCOUNT)
MAXIMUM SALES CHARGE (LOAD)
IMPOSED ON PURCHASES 4.75% NONE NONE
(AS A PERCENTAGE OF OFFERING PRICE)
MAXIMUM DEFERRED SALES CHARGE (LOAD)
(AS A PERCENTAGE OF PURCHASE OR NONE 2 5.00% 3 1.00% 4
REDEMPTION PROCEEDS, WHICHEVER IS LOWER)
REDEMPTION FEE5 $10 $10 $10
ACCOUNT MAINTENANCE FEE (FOR REGULAR
ACCOUNTS UNDER $5,000; IRA ACCOUNTS
UNDER $2,000) $20/YEAR $20/YEAR $20/YEAR
ANNUAL FUND OPERATING EXPENSES1
(DEDUCTED FROM FUND ASSETS)
MANAGEMENT FEES 0.45% 0.45% 0.45%
DISTRIBUTION AND SERVICE (12B-1) FEES 0.25% 1.00% 1.00%
OTHER EXPENSES 0.39% 0.39% 0.39%
TOTAL ANNUAL FUND OPERATING EXPENSES 1.09% 1.84% 1.84%
FEE WAIVER AND/OR EXPENSE REIMBURSEMENT6 0.34% 0.09% 0.09%
NET EXPENSES 0.75% 1.75% 1.75%
EXAMPLE
THIS EXAMPLE IS INTENDED TO HELP YOU COMPARE THE COST OF INVESTING IN THE FUND
WITH THE COST OF INVESTING IN OTHER MUTUAL FUNDS. THE EXAMPLE ASSUMES THAT:
- YOU INVEST $10,000 IN THE FUND FOR THE TIME PERIODS INDICATED;
- YOUR INVESTMENT HAS A 5% RETURN EACH YEAR; AND
- THE FUND'S OPERATING EXPENSES REMAIN THE SAME.
ALTHOUGH YOUR ACTUAL COSTS MAY BE HIGHER OR LOWER, UNDER THESE ASSUMPTIONS YOUR
COSTS WOULD BE:
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CLASS NUMBER OF YEARS INVESTMENT IS HELD
1 YEAR 3 YEARS
A (WITH REDEMPTION) $558 $783
A (NO REDEMPTION) 548 773
B (WITH REDEMPTION) 688 980
B (NO REDEMPTION) 178 570
C (WITH REDEMPTION) 288 580
C (NO REDEMPTION) 178 570
NOTES TO FEES AND EXPENSES TABLE
1 EXPENSES ARE BASED ON ESTIMATES FOR THE FUND'S CURRENT FISCAL YEAR.
MANAGEMENT FEES INCLUDE THE SUBADVISORY FEES PAID BY THE ADVISOR
("CAMCO") TO THE SUBADVISOR, AND THE ADMINISTRATIVE FEE PAID BY THE FUND
TO CALVERT ADMINISTRATIVE SERVICES COMPANY, AN AFFILIATE OF CAMCO.
2 PURCHASES OF CLASS A SHARES FOR ACCOUNTS WITH $1 MILLION OR MORE ARE NOT
SUBJECT TO FRONT-END SALES CHARGES, BUT MAY BE SUBJECT TO A 1% CONTINGENT
DEFERRED SALES CHARGE ON SHARES REDEEMED WITHIN 1 YEAR OF PURCHASE.
(SEE "HOW TO BUY SHARES" - CLASS A.)
3 A CONTINGENT DEFERRED SALES CHARGE IS IMPOSED ON THE PROCEEDS OF CLASS B
SHARES REDEEMED WITHIN 6 YEARS, SUBJECT TO CERTAIN EXCEPTIONS. THE CHARGE IS A
PERCENTAGE OF NET ASSET VALUE AT THE TIME OF PURCHASE OR REDEMPTION,
WHICHEVER IS LESS, AND DECLINES FROM 5% IN THE FIRST YEAR THAT SHARES ARE HELD,
TO 4% IN THE SECOND AND THIRD YEAR, 3% IN THE FOURTH YEAR, 2% IN THE FIFTH
YEAR, AND 1% IN THE SIXTH YEAR. THERE IS NO CHARGE ON REDEMPTIONS OF CLASS B
SHARES HELD FOR MORE THAN SIX YEARS. SEE "CALCULATION OF CONTINGENT DEFERRED
SALES CHARGE."
4 A CONTINGENT DEFERRED SALES CHARGE OF 1% IS IMPOSED ON THE PROCEEDS OF
CLASS C SHARES REDEEMED WITHIN ONE YEAR. THE CHARGE IS A PERCENTAGE OF NET
ASSET VALUE AT THE TIME OF PURCHASE OR REDEMPTION, WHICHEVER IS LESS. SEE
"CALCULATION OF CONTINGENT DEFERRED SALES CHARGE."
5 THE REDEMPTION FEE (NOT CHARGED ON OMNIBUS ACCOUNTS) IS DEDUCTED FROM
YOUR REDEMPTION PROCEEDS. IT IS PAYABLE TO THE FUND. THIS FEE IS TO ENSURE THAT
THE PORTFOLIO TRADING COSTS ARE BORNE BY INVESTORS MAKING THE TRANSACTIONS AND
NOT BY SHAREHOLDERS ALREADY IN THE FUND. THE FEE WILL NOT EXCEED 2% OF THE
REDEMPTION AMOUNT.
6 CAMCO HAS AGREED TO LIMIT ANNUAL FUND OPERATING EXPENSES (NET OF ANY
EXPENSE OFFSET ARRANGEMENTS) THROUGH SEPTEMBER 30, 2001. THE CONTRACTUAL EXPENSE
CAP IS SHOWN AS "NET EXPENSES," THIS IS THE MAXIMUM AMOUNT OF OPERATING EXPENSES
THAT MAY BE CHARGED TO THE FUND THROUGH SEPTEMBER 30, 2001. FOR THE PURPOSES OF
THIS EXPENSE LIMIT, OPERATING EXPENSES DO NOT INCLUDE INTEREST EXPENSE,
BROKERAGE COMMISSIONS, EXTRAORDINARY EXPENSES, TAXES AND CAPITAL ITEMS. THE FUND
HAS AN OFFSET ARRANGEMENT WITH THE CUSTODIAN BANK WHEREBY THE CUSTODIAN AND
TRANSFER AGENT FEES MAY BE PAID INDIRECTLY BY CREDITS ON THE FUND'S UNINVESTED
CASH BALANCES. THESE CREDITS ARE USED TO REDUCE THE FUND'S EXPENSES.
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INVESTMENT PRACTICES AND RELATED RISKS
ON THE FOLLOWING PAGES ARE BRIEF DESCRIPTIONS OF THE PRINCIPAL INVESTMENTS AND
TECHNIQUES, SUMMARIZED EARLIER, ALONG WITH CERTAIN ADDITIONAL INVESTMENT
TECHNIQUES AND THEIR RISKS. FOR EACH OF THE INVESTMENT PRACTICES LISTED, WE SHOW
THE PRINCIPAL TYPES OF RISK INVOLVED. (SEE THE PAGES FOLLOWING FOR A DESCRIPTION
OF THE TYPES OF RISKS).
CONVENTIONAL SECURITIES
STOCKS IN GENERAL. THE FUND IS SUBJECT TO STOCK MARKET RISK. STOCK PRICES
OVERALL MAY DECLINE OVER SHORT OR EVEN LONG PERIODS. THE FUND IS ALSO SUBJECT
TO INVESTMENT STYLE RISK, WHICH IS THE CHANCE THAT RETURNS FROM LARGE-AND
MID-CAPITALIZATION STOCKS WILL TRAIL RETURNS FROM OTHER ASSET CLASSES OR THE
OVERALL STOCKMARKET. EACH TYPE OF STOCK TENDS TO GO THROUGH CYCLES OF DOING
BETTER OR WORSE THAN THE STOCK MARKET IN GENERAL. FINALLY, INDIVIDUAL STOCKS
MAY LOSE VALUE FOR A VARIETY OF REASONS, EVEN WHEN THE OVERALL STOCK MARKET HAS
INCREASED. RISKS: MARKET.
FOREIGN SECURITIES. THE FUND MAY INVEST IN FOREIGN SECURITIES TO THE EXTENT
NECESSARY TO CARRY OUT ITS INVESTMENT STRATEGY OF HOLDING ALL OF THE STOCKS THAT
COMPRISE THE INDEX. THE INDEX (AND HENCE THE FUND) MAY INCLUDE SECURITIES
ISSUED BY COMPANIES LOCATED OUTSIDE THE US BUT ONLY IF THEY ARE TRADED PRIMARILY
ON THE NYSE OR AMEX/NASDAQ. THE FUND DOES NOT EXPECT TO OWN MORE THAN 5% OF
SUCH SECURITIES. RISKS: POLITICAL.
ILLIQUID SECURITIES. SECURITIES WHICH CANNOT BE READILY SOLD BECAUSE THERE IS NO
ACTIVE MARKET. THESE WOULD CONSIST PRIMARILY OF ANY HIGH SOCIAL IMPACT
INVESTMENTS AND SPECIAL EQUITIES INVESTMENTS (SEE BELOW). RISKS: LIQUIDITY,
MARKET AND TRANSACTION.
SMALL CAP STOCKS. INVESTING IN SMALL COMPANIES INVOLVES GREATER RISK THAN WITH
MORE ESTABLISHED COMPANIES. SMALL CAP STOCK PRICES ARE MORE VOLATILE AND THE
COMPANIES OFTEN HAVE LIMITED PRODUCT LINES, MARKETS, FINANCIAL RESOURCES, AND
MANAGEMENT EXPERIENCE. THE FUND DOES NOT EXPECT TO OWN MORE THAN 2% OF SUCH
SECURITIES (INCLUDING THE 1% IN SPECIAL EQUITIES). RISKS: MARKET, LIQUIDITY AND
INFORMATION.
TEMPORARY DEFENSIVE POSITIONS. DURING ADVERSE MARKET, ECONOMIC OR POLITICAL
CONDITIONS, THE FUND MAY DEPART FORM ITS PRINCIPAL INVESTMENT STRATEGIES BY
INVESTING IN HIGH QUALITY, SHORT-TERM DEBT (MONEY MARKET) INSTRUMENTS, INCLUDING
REPURCHASE AGREEMENTS AND COMMERCIAL PAPER. DURING TIMES OF ANY TEMPORARY
DEFENSIVE POSITIONS, A FUND MAY NOT BE ABLE TO ACHIEVE ITS INVESTMENT OBJECTIVE.
RISKS: OPPORTUNITY.
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LEVERAGED DERIVATIVE INSTRUMENTS
FUTURES CONTRACT. AGREEMENT TO BUY OR SELL A SPECIFIC AMOUNT OF A COMMODITY OR
FINANCIAL INSTRUMENT AT A PARTICULAR PRICE ON A SPECIFIC FUTURE DATE. THE FUND
WILL USE FUTURES ONLY FOR HEDGING PURPOSES AND NOT FOR SPECULATION. THE FUND MAY
INVEST IN FUTURES CONTRACTS THAT MAY NOT OTHERWISE MEET THE INDEX'S SOCIALLY
RESPONSIBLE CRITERIA. RISKS: INTEREST RATE, CURRENCY, MARKET, LEVERAGE,
CORRELATION, LIQUIDITY AND OPPORTUNITY.
HIGH SOCIAL IMPACT INVESTMENTS
HIGH SOCIAL IMPACT INVESTMENTS IS A PROGRAM THAT TARGETS A PERCENTAGE OF THE
FUND'S ASSETS (UP TO 1%) TO DIRECTLY SUPPORT THE GROWTH OF COMMUNITY-BASED
ORGANIZATIONS FOR THE PURPOSES OF PROMOTING BUSINESS CREATION, HOUSING
DEVELOPMENT, AND ECONOMIC AND SOCIAL DEVELOPMENT OF URBAN AND RURAL COMMUNITIES.
THE FUND MAY ENGAGE IN THIS PROGRAM UPON REACHING $50 MILLION IN ASSETS.THESE
TYPES OF INVESTMENTS OFFER A RATE OF RETURN BELOW THE THEN-PREVAILING MARKET
RATE, AND ARE CONSIDERED ILLIQUID, UNRATED AND MAY BE DEEMED BELOW-INVESTMENT
GRADE. THEY ALSO INVOLVE A GREATER RISK OF DEFAULT OR PRICE DECLINE THAN
INVESTMENT GRADE SECURITIES. HOWEVER, THEY HAVE A SIGNIFICANT SOCIAL RETURN BY
MAKING A TREMENDOUS DIFFERENCE IN OUR LOCAL COMMUNITIES. HIGH SOCIAL IMPACT
INVESTMENTS ARE VALUED UNDER THE DIRECTION AND CONTROL OF THE FUND'S BOARD.
THE FUND HAS RECEIVED AN EXEMPTIVE ORDER TO PERMIT IT TO INVEST THOSE ASSETS
ALLOCATED FOR INVESTMENT IN HIGH SOCIAL IMPACT INVESTMENTS THROUGH THE PURCHASE
OF COMMUNITY INVESTMENT NOTES FROM THE CALVERT SOCIAL INVESTMENT FOUNDATION. THE
CALVERT SOCIAL INVESTMENT FOUNDATION IS A NON-PROFIT ORGANIZATION, LEGALLY
DISTINCT FROM CALVERT GROUP, ORGANIZED AS A CHARITABLE AND EDUCATIONAL
FOUNDATION FOR THE PURPOSE OF INCREASING PUBLIC AWARENESS AND KNOWLEDGE OF THE
CONCEPT OF SOCIALLY RESPONSIBLE INVESTING. IT HAS INSTITUTED THE CALVERT
COMMUNITY INVESTMENTS PROGRAM TO RAISE ASSETS FROM INDIVIDUAL AND INSTITUTIONAL
INVESTORS AND THEN INVEST THESE ASSETS DIRECTLY IN NON-PROFIT OR NOT-FOR-PROFIT
COMMUNITY DEVELOPMENT ORGANIZATIONS AND COMMUNITY DEVELOPMENT BANKS THAT FOCUS
ON LOW INCOME HOUSING, ECONOMIC DEVELOPMENT AND BUSINESS DEVELOPMENT IN URBAN
AND RURAL COMMUNITIES.
INVESTMENTS IN HIGH SOCIAL IMPACT INVESTMENTS MAY HINDER THE FUND'S ABILITY TO
TRACK THE INDEX. FOR THIS REASON, THE FUND LIMITS THE AMOUNT OF SUCH INVESTMENTS
TO ONLY 1% OF FUND ASSETS.
SPECIAL EQUITIES
THE FUND HAS A SPECIAL EQUITIES INVESTMENT PROGRAM THAT ALLOWS THE FUND TO
PROMOTE ESPECIALLY PROMISING APPROACHES TO SOCIAL GOALS THROUGH PRIVATELY PLACED
INVESTMENTS. THE INVESTMENTS ARE GENERALLY VENTURE CAPITAL INVESTMENTS IN SMALL,
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UNTRIED ENTERPRISES. THE SPECIAL EQUITIES COMMITTEE OF THE FUND'S BOARD
IDENTIFIES, EVALUATES, AND SELECTS THE SPECIAL EQUITIES INVESTMENTS. SPECIAL
EQUITIES INVOLVE A HIGH DEGREE OF RISK - THEY ARE SUBJECT TO LIQUIDITY,
INFORMATION, AND IF A DEBT INVESTMENT, CREDIT RISK. SPECIAL EQUITIES ARE VALUED
UNDER THE DIRECTION AND CONTROL OF THE FUND'S BOARD. THE FUND MAY ENGAGE IN THIS
PROGRAM UPON REACHING $50 MILLION IN ASSETS. SPECIAL EQUITIES INVESTMENTS ARE
LIMITED TO ONLY 1% OF ASSETS.
THE FUND HAS ADDITIONAL INVESTMENT POLICIES AND RESTRICTIONS (FOR EXAMPLE,
REPURCHASE AGREEMENTS, BORROWING, PLEDGING, AND REVERSE REPURCHASE AGREEMENTS,
AND SECURITIES LENDING.) THESE POLICIES AND RESTRICTIONS ARE DISCUSSED IN THE
SAI.
TYPES OF INVESTMENT RISK
CORRELATION RISK
THIS OCCURS WHEN A FUND "HEDGES" - USES ONE INVESTMENT TO OFFSET THE FUND'S
POSITION IN ANOTHER. IF THE TWO INVESTMENTS DO NOT BEHAVE IN RELATION TO ONE
ANOTHER THE WAY FUND MANAGERS EXPECT THEM TO, THEN UNEXPECTED OR UNDESIRED
RESULTS MAY OCCUR. FOR EXAMPLE, A HEDGE MAY ELIMINATE OR REDUCE GAINS AS WELL AS
OFFSET LOSSES.
CREDIT RISK
THE RISK THAT THE ISSUER OF A SECURITY OR THE COUNTERPARTY TO AN INVESTMENT
CONTRACT MAY DEFAULT OR BECOME UNABLE TO PAY ITS OBLIGATIONS WHEN DUE.
CURRENCY RISK
CURRENCY RISK OCCURS WHEN A FUND BUYS, SELLS OR HOLDS A SECURITY DENOMINATED IN
FOREIGN CURRENCY. FOREIGN CURRENCIES "FLOAT" IN VALUE AGAINST THE US DOLLAR.
ADVERSE CHANGES IN FOREIGN CURRENCY VALUES CAN CAUSE INVESTMENT LOSSES WHEN A
FUND'S INVESTMENTS ARE CONVERTED TO US DOLLARS.
INFORMATION RISK
THE RISK THAT INFORMATION ABOUT A SECURITY OR ISSUER OR THE MARKET MIGHT NOT BE
AVAILABLE, COMPLETE, ACCURATE OR COMPARABLE.
INTEREST RATE RISK
THE RISK THAT CHANGES IN INTEREST RATES WILL ADVERSELY AFFECT THE VALUE OF AN
INVESTOR'S SECURITIES. WHEN INTEREST RATES RISE, THE VALUE OF FIXED-INCOME
SECURITIES WILL GENERALLY FALL. CONVERSELY, A DROP IN INTEREST RATES WILL
GENERALLY CAUSE AN INCREASE IN THE VALUE OF FIXED-INCOME SECURITIES. LONGER-TERM
SECURITIES AND ZERO COUPON/"STRIPPED" COUPON SECURITIES ("STRIPS") ARE
SUBJECT TO GREATER INTEREST RATE RISK.
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LEVERAGE RISK
THE RISK THAT OCCURS IN SOME SECURITIES OR TECHNIQUES WHICH TEND TO MAGNIFY THE
EFFECT OF SMALL CHANGES IN AN INDEX OR A MARKET. THIS CAN RESULT IN A LOSS THAT
EXCEEDS THE AMOUNT ACTUALLY INVESTED.
LIQUIDITY RISK
THE RISK THAT OCCURS WHEN INVESTMENTS CANNOT BE READILY SOLD. A FUND MAY HAVE TO
ACCEPT A LESS-THAN-DESIRABLE PRICE TO COMPLETE THE SALE OF AN ILLIQUID SECURITY
OR MAY NOT BE ABLE TO SELL IT AT ALL.
MARKET RISK
THE RISK THAT SECURITIES PRICES IN A MARKET, A SECTOR OR AN INDUSTRY WILL
FLUCTUATE, AND THAT SUCH MOVEMENTS MIGHT REDUCE AN INVESTMENT'S VALUE.
OPPORTUNITY RISK
THE RISK OF MISSING OUT ON AN INVESTMENT OPPORTUNITY BECAUSE THE ASSETS NEEDED
TO TAKE ADVANTAGE OF IT ARE COMMITTED TO LESS ADVANTAGEOUS INVESTMENTS OR
STRATEGIES.
POLITICAL RISK
THE RISK THAT MAY OCCUR WITH FOREIGN INVESTMENTS, AND MEANS THAT THE VALUE OF AN
INVESTMENT MAY BE ADVERSELY AFFECTED BY NATIONALIZATION, TAXATION, WAR,
GOVERNMENT INSTABILITY OR OTHER ECONOMIC OR POLITICAL ACTIONS OR FACTORS.
TRANSACTION RISK
THE RISK THAT A FUND MAY BE DELAYED OR UNABLE TO SETTLE A TRANSACTION OR THAT
COMMISSIONS AND SETTLEMENT EXPENSES MAY BE HIGHER THAN USUAL.
WHAT IS INDEXING?
AN INDEX IS AN UNMANAGED GROUP OF SECURITIES WHOSE OVERALL PERFORMANCE IS USED
AS A STANDARD TO MEASURE INVESTMENT PERFORMANCE. AN INDEX (OR "PASSIVELY
MANAGED") FUND TRIES TO MATCH, AS CLOSELY AS POSSIBLE, THE PERFORMANCE OF AN
ESTABLISHED TARGET INDEX.
INDEX FUNDS ARE NOT ACTIVELY MANAGED BY INVESTMENT ADVISORS WHO BUY AND SELL
SECURITIES BASED ON RESEARCH AND ANALYSIS IN AN ATTEMPT TO OUTPERFORM A
PARTICULAR BENCHMARK OR THE MARKET AS A WHOLE. RATHER, INDEX FUNDS SIMPLY
ATTEMPT TO MIRROR WHAT THE TARGET INDEX DOES, FOR BETTER OR FOR WORSE. THE
SOCIALLY RESPONSIBLE CRITERIA USED BY THE CALVERT SOCIAL INDEX MAY RESULT IN
ECONOMIC SECTOR WEIGHTINGS THAT ARE SIGNIFICANTLY DIFFERENT FROM THOSE OF THE
OVERALL MARKET.
TO TRACK ITS TARGET INDEX AS CLOSELY AS POSSIBLE, THE FUND ATTEMPTS TO REMAIN
FULLY INVESTED IN STOCKS. TO HELP STAY FULLY INVESTED, AND TO REDUCE TRANSACTION
COSTS, THE FUND MAY INVEST, TO A LIMITED EXTENT IN STOCK FUTURES AND OPTIONS
CONTRACTS,
<PAGE>
OR OTHER REGISTERED INVESTMENT COMPANIES. THE FUND MAY PURCHASE U.S. TREASURY
SECURITIES IN CONNECTION WITH ITS HEDGING ACTIVITIES.
ALTHOUGH INDEX FUNDS, BY THEIR NATURE TEND TO BE TAX-EFFICIENT INVESTMENT
VEHICLES, THE FUND GENERALLY IS MANAGED WITHOUT REGARD TO TAX RAMIFICATIONS.
SHAREHOLDER ADVOCACY AND SOCIAL RESPONSIBILITY
AS THE FUND'S ADVISOR, CALVERT TAKES A PROACTIVE ROLE TO MAKE A TANGIBLE
POSITIVE CONTRIBUTION TO OUR SOCIETY AND THAT OF FUTURE GENERATIONS. WE SEEK TO
POSITIVELY INFLUENCE CORPORATE BEHAVIOR THROUGH OUR ROLE AS SHAREHOLDERS BY
PUSHING COMPANIES TOWARD HIGHER STANDARDS OF SOCIAL AND ENVIRONMENTAL
RESPONSIBILITY. OUR RELATIONSHIP WITH COMPANY MANAGEMENT CONTINUES ONCE WE
INVEST IN A COMPANY. OUR ACTIVITIES MAY INCLUDE BUT ARE NOT LIMITED TO:
DIALOGUE WITH COMPANIES
WE REGULARLY INITIATE DIALOGUE WITH MANAGEMENT AS PART OF OUR SOCIAL RESEARCH
PROCESS. AFTER WE'VE BECOME A SHAREHOLDER, WE OFTEN CONTINUE OUR DIALOGUE WITH
MANAGEMENT THROUGH PHONE CALLS, LETTERS AND IN-PERSON MEETINGS. THROUGH OUR
INTERACTION, WE LEARN ABOUT MANAGEMENT'S SUCCESSES AND CHALLENGES AND PRESS FOR
IMPROVEMENT ON ISSUES OF CONCERN.
PROXY VOTING
AS A SHAREHOLDER IN OUR VARIOUS PORTFOLIO COMPANIES, WE ARE GUARANTEED AN
OPPORTUNITY EACH YEAR TO EXPRESS OUR VIEWS ON ISSUES OF CORPORATE GOVERNANCE AND
SOCIAL RESPONSIBILITY AT ANNUAL STOCKHOLDER MEETINGS. WE TAKE OUR VOTING
RESPONSIBILITY SERIOUSLY AND VOTE ALL PROXIES CONSISTENT WITH THE FINANCIAL AND
SOCIAL OBJECTIVES OF OUR FUND.
SHAREHOLDER RESOLUTIONS
CALVERT PROPOSES RESOLUTIONS ON A VARIETY OF SOCIAL ISSUES. WE FILE SHAREHOLDER
RESOLUTIONS WHEN OUR DIALOGUE WITH CORPORATE MANAGEMENT PROVES UNSUCCESSFUL TO
ENCOURAGE A COMPANY TO TAKE ACTION. IN MOST CASES, OUR EFFORTS HAVE LED TO
NEGOTIATED SETTLEMENTS WITH POSITIVE RESULTS FOR SHAREHOLDERS AND COMPANIES
ALIKE. FOR EXAMPLE, ONE OF OUR SHAREHOLDER RESOLUTIONS RESULTED IN THE COMPANY'S
FIRST-EVER DISCLOSURE OF ITS EQUAL EMPLOYMENT POLICIES, PROGRAMS AND WORKFORCE
DEMOGRAPHICS.
ABOUT THE ADVISOR
CALVERT ASSET MANAGEMENT COMPANY, INC.(4550 MONTGOMERY AVENUE, SUITE 1000N,
BETHESDA, MD 20814) ("CAMCO") IS THE FUNDS' INVESTMENT ADVISOR. CAMCO PROVIDES
THE FUNDS WITH INVESTMENT SUPERVISION AND MANAGEMENT AND OFFICE SPACE; FURNISHES
EXECUTIVE AND OTHER PERSONNEL TO THE FUNDS, AND PAYS THE
<PAGE>
SALARIES AND FEES OF ALL TRUSTEES/DIRECTORS WHO ARE AFFILIATED PERSONS OF THE
ADVISOR. IT HAS BEEN MANAGING MUTUAL FUNDS SINCE 1976. CALVERT IS THE INVESTMENT
ADVISOR FOR OVER 25 MUTUAL FUND PORTFOLIOS, INCLUDING THE FIRST AND LARGEST
FAMILY OF SOCIALLY SCREENED FUNDS. AS OF DECEMBER 31, 1999, CALVERT HAD OVER $6
BILLION IN ASSETS UNDER MANAGEMENT.
SUBADVISOR
WORLD ASSET MANAGEMENT, LLC (255 E. BROWN ST., BIRMINGHAM, MI 48009) IS THE
FUND'S SUBADVISOR. IT HAS BEEN IN THE INDEX BUSINESS SINCE THE MID 1970S AND
SPECIALIZES IN PASSIVE PORTFOLIO MANAGEMENT TECHNIQUE. IT HAS MANAGED THE FUND
SINCE INCEPTION.
THE FUND HAS OBTAINED AN EXEMPTIVE ORDER FROM THE SECURITIES AND EXCHANGE
COMMISSION TO PERMIT THE FUND, PURSUANT TO APPROVAL BY THE BOARD OF DIRECTORS,
TO ENTER INTO AND MATERIALLY AMEND CONTRACTS WITH THE FUND'S SUBADVISORS WITHOUT
SHAREHOLDER APPROVAL. SEE "INVESTMENT ADVISOR AND SUBADVISOR" IN THE SAI FOR
FURTHER DETAILS.
ADVISORY FEES
THE FUND'S ADVISORY AGREEMENT PROVIDES FOR THE FUND TO PAY CAMCO A FEE OF 0.225%
OF THE FUND'S AVERAGE DAILY NET ASSETS.
HOW TO BUY SHARES
GETTING STARTED - BEFORE YOU OPEN AN ACCOUNT
YOU HAVE A FEW DECISIONS TO MAKE BEFORE YOU OPEN AN ACCOUNT IN A MUTUAL FUND.
FIRST, DECIDE WHICH FUND OR FUNDS BEST SUITS YOUR NEEDS AND YOUR GOALS.
SECOND, DECIDE WHAT KIND OF ACCOUNT YOU WANT TO OPEN. CALVERT OFFERS INDIVIDUAL,
JOINT, TRUST, UNIFORM GIFTS/TRANSFERS TO MINOR ACCOUNTS, TRADITIONAL, EDUCATION
AND ROTH IRAS, QUALIFIED PROFIT-SHARING AND MONEY PURCHASE PLANS, SIMPLE IRAS,
SEP-IRAS, 403(B)(7) ACCOUNTS, AND SEVERAL OTHER TYPES OF ACCOUNTS. MINIMUM
INVESTMENTS ARE LOWER FOR THE RETIREMENT PLANS.
THEN DECIDE WHICH CLASS OF SHARES IS BEST FOR YOU.
YOU SHOULD MAKE THIS DECISION CAREFULLY, BASED ON:
- THE AMOUNT YOU WISH TO INVEST;
- THE LENGTH OF TIME YOU PLAN TO KEEP THE INVESTMENT; AND
- THE CLASS EXPENSES.
<PAGE>
CHOOSING A SHARE CLASS
THE FUND IN THIS PROSPECTUS OFFERS THREE DIFFERENT CLASSES (CLASS A, B, OR C).
THIS CHART SHOWS THE DIFFERENCE IN THE CLASSES AND THE GENERAL TYPES OF
INVESTORS WHO MAY BE INTERESTED IN EACH CLASS:
CLASS A:
FRONT-END SALES
CHARGE
FOR ALL INVESTORS, PARTICULARLY THOSE INVESTING A SUBSTANTIAL AMOUNT WHO PLAN TO
HOLD THE SHARES FOR A LONG PERIOD OF TIME.
SALES CHARGE ON EACH PURCHASE OF 4.75% OR LESS, DEPENDING ON THE AMOUNT YOU
INVEST.
CLASS A SHARES HAVE AN ANNUAL 12B-1 FEE OF UP TO 0.25%.
CLASS A SHARES HAVE LOWER ANNUAL EXPENSES DUE TO A LOWER 12B-1 FEE.
PURCHASES OF CLASS A SHARES AT NAV FOR ACCOUNTS WITH $1,000,000 OR MORE WILL BE
SUBJECT TO A 1.0% DEFERRED SALES CHARGE FOR 1 YEAR.
CLASS B:
DEFERRED SALES
CHARGE FOR 6 YEARS
FOR INVESTORS WHO PLAN TO HOLD THE SHARES AT LEAST 6 YEARS. THE EXPENSES OF THIS
CLASS ARE HIGHER THAN CLASS A, BECAUSE OF THE 12B-1 FEE.
NO SALES CHARGE ON EACH PURCHASE, BUT IF YOU SELL YOUR SHARES WITHIN 6 YEARS,
YOU WILL PAY A DEFERRED SALES CHARGE OF 5% OR LESS ON SHARES YOU SELL.
CLASS B SHARES HAVE AN ANNUAL 12B-1 FEE OF 1.00%.
YOUR SHARES WILL AUTOMATICALLY CONVERT TO CLASS A SHARES AFTER 8 YEARS, REDUCING
YOUR FUTURE ANNUAL EXPENSES.
IF YOU ARE INVESTING MORE THAN $250,000, YOU SHOULD CONSIDER INVESTING IN CLASS
A
OR C.
CLASS C:
DEFERRED SALES
CHARGE FOR 1 YEAR
FOR INVESTORS WHO ARE INVESTING FOR AT LEAST ONE YEAR, BUT LESS THAN SIX YEARS.
THE EXPENSES OF THIS CLASS ARE HIGHER THAN CLASS A, BECAUSE OF THE 12B-1 FEE.
NO SALES CHARGE ON EACH PURCHASE, BUT IF YOU SELL SHARES WITHIN 1 YEAR, THEN YOU
WILL PAY A DEFERRED SALES CHARGE OF 1% AT THAT TIME.
CLASS C SHARES HAVE AN ANNUAL 12B-1 FEE OF 1.00%.
CLASS C SHARES HAVE HIGHER ANNUAL EXPENSES THAN CLASS A AND THERE IS NO
AUTOMATIC CONVERSION TO CLASS A.
IF YOU ARE INVESTING MORE THAN $1,000,000, YOU SHOULD INVEST IN CLASS A.
<PAGE>
CLASS A
IF YOU CHOOSE CLASS A, YOU WILL PAY A SALES CHARGE AT THE TIME OF EACH PURCHASE.
THIS TABLE SHOWS THE CHARGES BOTH AS A PERCENTAGE OF OFFERING PRICE AND AS A
PERCENTAGE OF THE AMOUNT YOU INVEST. THE TERM "OFFERING PRICE" MEANS THE NAV PER
SHARE PLUS THE FRONT-END SALES CHARGE. IF YOU INVEST MORE, THE PERCENTAGE RATE
OF THE SALES CHARGE WILL BE LOWER. FOR EXAMPLE, IF YOU INVEST MORE THAN $50,000,
OR IF YOUR CUMULATIVE PURCHASES OR THE VALUE IN YOUR ACCOUNT IS MORE THAN
$50,000,1 THEN THE SALES CHARGE IS REDUCED TO 3.75%.
YOUR INVESTMENT IN SALES CHARGE % % OF AMT.
CLASS A SHARES OF OFFERING PRICE INVESTED
LESS THAN $50,000 4.75% 4.99%
$50,000 BUT LESS THAN $100,000 3.75% 3.90%
$100,000 BUT LESS THAN $250,000 2.75% 2.83%
$250,000 BUT LESS THAN $500,000 1.75% 1.78%
$500,000 BUT LESS THAN $1,000,000 1.00% 1.01%
$1,000,000 AND OVER NONE* NONE*
1 THIS IS CALLED "RIGHTS OF ACCUMULATION." THE SALES CHARGE IS CALCULATED BY
TAKING INTO ACCOUNT NOT ONLY THE DOLLAR AMOUNT OF THE NEW PURCHASE OF
SHARES, BUT ALSO THE HIGHER OF COST OR CURRENT VALUE OF SHARES YOU HAVE
PREVIOUSLY PURCHASED IN CALVERT GROUP FUNDS THAT IMPOSE SALES CHARGES. THIS
AUTOMATICALLY APPLIES TO YOUR ACCOUNT FOR EACH NEW PURCHASE OF CLASS A SHARES.
* PURCHASES OF CLASS A SHARES AT NAV FOR ACCOUNTS WITH $1,000,000 OR MORE
ARE SUBJECT TO A ONE YEAR CDSC OF 1.00%. SEE THE "CALCULATION OF
CONTINGENT DEFERRED SALES CHARGE AND WAIVER OF SALES CHARGES."
THE CLASS A FRONT-END SALES CHARGE MAY BE WAIVED FOR CERTAIN PURCHASES OR
INVESTORS, SUCH AS PARTICIPANTS IN CERTAIN GROUP RETIREMENT PLANS OR OTHER
QUALIFIED GROUPS AND CLIENTS OF REGISTERED INVESTMENT ADVISERS. FOR DETAILS ON
THESE AND OTHER PURCHASES THAT MAY QUALIFY FOR A REDUCED SALES CHARGE, SEE
EXHIBIT A.
CLASS B
IF YOU CHOOSE CLASS B, THERE IS NO FRONT-END SALES CHARGE LIKE CLASS A, BUT IF
YOU SELL THE SHARES WITHIN THE FIRST 6 YEARS, YOU WILL HAVE TO PAY A "CONTINGENT
DEFERRED" SALES CHARGE ("CDSC"). KEEP IN MIND THAT THE LONGER YOU HOLD THE
SHARES, THE LESS YOU WILL HAVE TO PAY IN DEFERRED SALES CHARGES.
TIME SINCE PURCHASE CDSC %
1ST YEAR 5%
2ND YEAR 4%
3RD YEAR 4%
4TH YEAR 3%
5TH YEAR 2%
6TH YEAR 1%
AFTER 6 YEARS NONE
<PAGE>
CALCULATION OF CONTINGENT DEFERRED SALES CHARGE AND WAIVER OF SALES
CHARGES
THE CDSC WILL NOT BE CHARGED ON SHARES YOU RECEIVED AS DIVIDENDS OR FROM CAPITAL
GAINS DISTRIBUTIONS OR ON ANY CAPITAL APPRECIATION (GAIN IN THE VALUE) OF SHARES
THAT ARE SOLD.
SHARES THAT ARE NOT SUBJECT TO THE CDSC WILL BE REDEEMED FIRST, FOLLOWED BY
SHARES YOU HAVE HELD THE LONGEST. THE CDSC IS CALCULATED BY DETERMINING THE
SHARE VALUE AT BOTH THE TIME OF PURCHASE AND REDEMPTION AND THEN MULTIPLYING
WHICHEVER VALUE IS LESS BY THE PERCENTAGE THAT APPLIES AS SHOWN ABOVE. IF YOU
CHOOSE TO SELL ONLY PART OF YOUR SHARES, THE CAPITAL APPRECIATION FOR THOSE
SHARES ONLY IS INCLUDED IN THE CALCULATION, RATHER THAN THE CAPITAL APPRECIATION
FOR THE ENTIRE ACCOUNT.
THE CDSC ON CLASS B SHARES WILL BE WAIVED IN THE FOLLOWING CIRCUMSTANCES:
- REDEMPTION UPON THE DEATH OR DISABILITY OF THE SHAREHOLDER, PLAN
PARTICIPANT, OR BENEFICIARY.2
- MINIMUM REQUIRED DISTRIBUTIONS FROM RETIREMENT PLAN ACCOUNTS FOR
SHAREHOLDERS 701/2 AND OLDER.3
- THE RETURN OF AN EXCESS CONTRIBUTION OR DEFERRAL AMOUNTS, PURSUANT TO
SECTIONS 408(D)(4) OR (5), 401(K)(8), 402(G)(2), OR 401(M)(6) OF THE
INTERNAL REVENUE CODE.
- INVOLUNTARY REDEMPTIONS OF ACCOUNTS UNDER PROCEDURES SET FORTH BY THE
FUND'S BOARD OF DIRECTORS.
- A SINGLE ANNUAL WITHDRAWAL UNDER A SYSTEMATIC WITHDRAWAL PLAN OF UP TO 10%
OF THE SHAREHOLDER'S ACCOUNT BALANCE.4
2 "DISABILITY" MEANS A TOTAL DISABILITY AS EVIDENCED BY A DETERMINATION BY
THE FEDERAL SOCIAL SECURITY ADMINISTRATION.
3 THE MAXIMUM AMOUNT SUBJECT TO THIS WAIVER IS BASED ONLY UPON THE
SHAREHOLDER'S CALVERT GROUP RETIREMENT ACCOUNTS.
4 THIS SYSTEMATIC WITHDRAWAL PLAN REQUIRES A MINIMUM ACCOUNT BALANCE OF
$50,000 TO BE ESTABLISHED.
CLASS C
IF YOU CHOOSE CLASS C, THERE IS NO FRONT-END SALES CHARGE LIKE CLASS A, BUT IF
YOU SELL THE SHARES WITHIN THE FIRST YEAR, YOU WILL HAVE TO PAY A 1% CDSC. CLASS
C MAY BE A GOOD CHOICE FOR YOU IF YOU PLAN TO BUY SHARES AND HOLD THEM FOR AT
LEAST 1 YEAR, BUT NOT MORE THAN FIVE OR SIX YEARS.
<PAGE>
DISTRIBUTION AND SERVICE FEES
THE FUND HAS ADOPTED A PLAN UNDER RULE 12B-1 OF THE INVESTMENT COMPANY ACT OF
1940 THAT ALLOWS THE FUND TO PAY DISTRIBUTION FEES FOR THE SALE AND DISTRIBUTION
OF ITS SHARES. THE DISTRIBUTION PLAN ALSO PAYS SERVICE FEES TO PERSONS (SUCH AS
YOUR FINANCIAL PROFESSIONAL) FOR SERVICES PROVIDED TO SHAREHOLDERS. BECAUSE
THESE FEES ARE PAID OUT OF A FUND'S ASSETS ON AN ONGOING BASIS, OVER TIME, THESE
FEES WILL INCREASE THE COST OF YOUR INVESTMENT AND MAY COST YOU MORE THAN PAYING
OTHER TYPES OF SALES CHARGES. PLEASE SEE EXHIBIT B FOR MORE SERVICE FEE
INFORMATION.
THE TABLE BELOW SHOWS THE MAXIMUM ANNUAL PERCENTAGE PAYABLE UNDER THE
DISTRIBUTION PLAN. THE FEES ARE BASED ON AVERAGE DAILY NET ASSETS OF THE
PARTICULAR CLASS.
MAXIMUM PAYABLE UNDER PLAN
CLASS A CLASS B CLASS C
0.25% 1.00% 1.00%
NEXT STEP - ACCOUNT APPLICATION
COMPLETE AND SIGN AN APPLICATION FOR EACH NEW ACCOUNT. WHEN MULTIPLE CLASSES OF
SHARES ARE OFFERED, PLEASE SPECIFY WHICH CLASS YOU WISH TO PURCHASE. FOR MORE
INFORMATION, CONTACT YOUR FINANCIAL PROFESSIONAL OR OUR SALES DEPARTMENT AT
800-368-2748.
MINIMUM TO OPEN AN ACCOUNT MINIMUM ADDITIONAL
$5,000 INVESTMENTS -$250
($2,000 FOR IRAS) (THE FUND CHARGES A $5 SERVICE
FEE ON PURCHASES OF LESS THAN $250.)
PLEASE MAKE YOUR CHECK PAYABLE
TO THE FUND AND MAIL IT TO CALVERT'S TRANSFER AGENT AT:
NEW ACCOUNTS SUBSEQUENT INVESTMENTS
(INCLUDE APPLICATION) (INCLUDE INVESTMENT SLIP)
CALVERT GROUP CALVERT GROUP
P.O. BOX 219544 P.O. BOX 219739
KANSAS, CITY MO KANSAS CITY, MO
64121-9544 64121-9739
BY REGISTERED, CALVERT GROUP
CERTIFIED, OR C/O NFDS,
OVERNIGHT MAIL 330 WEST 9TH ST.
KANSAS CITY, MO 64105-1807
<PAGE>
IMPORTANT - HOW SHARES ARE PRICED
THE PRICE OF SHARES IS BASED ON THE FUND'S NET ASSET VALUE ("NAV"). NAV IS
COMPUTED BY ADDING THE VALUE OF THE FUND'S HOLDINGS PLUS OTHER ASSETS,
SUBTRACTING LIABILITIES, AND THEN DIVIDING THE RESULT BY THE NUMBER OF SHARES
OUTSTANDING. THE NAV OF EACH CLASS WILL BE DIFFERENT, DEPENDING ON THE NUMBER OF
SHARES OUTSTANDING FOR EACH CLASS.
PORTFOLIO SECURITIES AND OTHER ASSETS ARE VALUED BASED ON MARKET QUOTATIONS,
EXCEPT THAT SECURITIES MATURING WITHIN 60 DAYS ARE VALUED AT AMORTIZED COST. IF
MARKET QUOTATIONS ARE NOT READILY AVAILABLE, SECURITIES ARE VALUED BY A METHOD
THAT THE FUND'S BOARD OF TRUSTEES/DIRECTORS BELIEVES ACCURATELY REFLECTS FAIR
VALUE.
THE NAV IS CALCULATED AS OF THE CLOSE OF EACH BUSINESS DAY, WHICH COINCIDES WITH
THE CLOSING OF THE REGULAR SESSION OF THE NEW YORK STOCK EXCHANGE ("NYSE")
(NORMALLY 4 P.M. ET). THE FUND IS OPEN FOR BUSINESS EACH DAY THE NYSE IS OPEN.
PLEASE NOTE THAT THERE ARE SOME FEDERAL HOLIDAYS, HOWEVER, SUCH AS COLUMBUS DAY
AND VETERANS' DAY, WHEN THE NYSE IS OPEN AND THE FUND IS OPEN BUT PURCHASES
CANNOT BE RECEIVED BECAUSE THE BANKS AND POST OFFICES ARE CLOSED.
WHEN YOUR ACCOUNT WILL BE CREDITED
YOUR PURCHASE WILL BE PROCESSED AT THE NAV NEXT CALCULATED AFTER YOUR ORDER IS
RECEIVED BY THE TRANSFER AGENT IN KANSAS CITY, MO (SEE ADDRESSES ON PRECEDING
PAGE). ALL OF YOUR PURCHASES MUST BE MADE IN US DOLLARS AND INDICATE THE FUND
AND CLASS. NO CASH OR THIRD PARTY CHECKS WILL BE ACCEPTED. NO CREDIT CARD OR
CREDIT LOAN CHECKS WILL BE ACCEPTED. EACH FUND RESERVES THE RIGHT TO SUSPEND THE
OFFERING OF SHARES FOR A PERIOD OF TIME OR TO REJECT ANY SPECIFIC PURCHASE
ORDER. AS A CONVENIENCE, CHECK PURCHASES RECEIVED AT CALVERT'S OFFICE IN
BETHESDA, MARYLAND WILL BE SENT BY OVERNIGHT DELIVERY TO THE TRANSFER AGENT AND
WILL BE CREDITED THE NEXT BUSINESS DAY UPON RECEIPT BY THE TRANSFER AGENT. YOU
SHOULD NOTE THAT THE SHARE PRICE MAY CHANGE DURING THIS PERIOD. ANY CHECK
PURCHASE RECEIVED WITHOUT AN INVESTMENT SLIP MAY CAUSE DELAYED CREDITING. ANY
PURCHASE LESS THAN THE $250 MINIMUM FOR SUBSEQUENT INVESTMENTS WILL BE CHARGED A
FEE OF $5 PAYABLE TO THE FUND. IF YOUR CHECK DOES NOT CLEAR YOUR BANK, YOUR
PURCHASE WILL BE CANCELED AND YOU WILL BE CHARGED A $25 FEE PLUS ANY COSTS
INCURRED. ALL PURCHASES WILL BE CONFIRMED AND CREDITED TO YOUR ACCOUNT IN FULL
AND FRACTIONAL SHARES (ROUNDED TO THE NEAREST 1/1000TH OF A SHARE).
<PAGE>
OTHER CALVERT GROUP FEATURES
CALVERT INFORMATION NETWORK
FOR 24 HOUR PERFORMANCE AND ACCOUNT INFORMATION VISIT WWW.CALVERT.COM
ACCOUNT SERVICES
BY SIGNING UP FOR SERVICES WHEN YOU OPEN YOUR ACCOUNT, YOU AVOID HAVING TO
OBTAIN A SIGNATURE GUARANTEE. IF YOU WISH TO ADD SERVICES AT A LATER DATE, A
SIGNATURE GUARANTEE TO VERIFY YOUR SIGNATURE MAY BE OBTAINED FROM ANY BANK,
TRUST COMPANY AND SAVINGS AND LOAN ASSOCIATION, CREDIT UNION, BROKER-DEALER FIRM
OR MEMBER OF A DOMESTIC STOCK EXCHANGE. A NOTARY PUBLIC CANNOT PROVIDE A
SIGNATURE GUARANTEE.
CALVERT MONEY CONTROLLER
CALVERT MONEY CONTROLLER ALLOWS YOU TO PURCHASE OR SELL SHARES BY ELECTRONIC
FUNDS TRANSFER WITHOUT THE TIME DELAY OF MAILING A CHECK OR THE ADDED EXPENSE OF
A WIRE. USE THIS SERVICE TO TRANSFER UP TO $300,000 ELECTRONICALLY. ALLOW ONE OR
TWO BUSINESS DAYS AFTER YOU PLACE YOUR REQUEST FOR THE TRANSFER TO TAKE PLACE.
MONEY TRANSFERRED TO PURCHASE NEW SHARES MAY BE SUBJECT TO A HOLD OF UP TO 10
BUSINESS DAYS BEFORE REDEMPTION REQUESTS WILL BE HONORED. TRANSACTION REQUESTS
MUST BE RECEIVED BY 4 P.M. ET TO RECEIVE THAT DAY'S PRICE. YOU MAY REQUEST THIS
SERVICE ON YOUR INITIAL ACCOUNT APPLICATION. CALVERT MONEY CONTROLLER
TRANSACTIONS RETURNED BY YOUR BANK WILL INCUR A $25 CHARGE.
TELEPHONE TRANSACTIONS
YOU MAY PURCHASE, REDEEM, EXCHANGE SHARES, WIRE FUNDS AND USE CALVERT MONEY
CONTROLLER BY TELEPHONE IF YOU HAVE PRE-AUTHORIZED SERVICE INSTRUCTIONS AND
ESTABLISHED BANK INSTRUCTIONS ON YOUR ACCOUNT, WHEN OPENED OR AT A LATER DATE BY
A SIGNATURE GUARANTEED LETTER. YOU RECEIVE TELEPHONE PRIVILEGES AUTOMATICALLY
WHEN YOU OPEN YOUR ACCOUNT UNLESS YOU INSTRUCT US OTHERWISE IN WRITING. WHILE
TELEPHONE REDEMPTION IS EASY AND CONVENIENT, THIS ACCOUNT FEATURE INVOLVES A
RISK OF LOSS FROM UNAUTHORIZED OR FRAUDULENT TRANSACTIONS. CALVERT WILL TAKE
REASONABLE PRECAUTIONS TO PROTECT YOUR ACCOUNT FROM FRAUD. YOU SHOULD DO THE
SAME BY KEEPING YOUR ACCOUNT INFORMATION PRIVATE AND IMMEDIATELY REVIEWING ANY
CONFIRMATIONS OR ACCOUNT STATEMENTS THAT WE SEND TO YOU. MAKE SURE TO CONTACT
CALVERT IMMEDIATELY ABOUT ANY TRANSACTION YOU BELIEVE TO BE UNAUTHORIZED.
WE RESERVE THE RIGHT TO REFUSE A TELEPHONE REDEMPTION IF THE CALLER IS UNABLE TO
PROVIDE:
- THE ACCOUNT NUMBER.
- THE NAME AND ADDRESS EXACTLY AS REGISTERED ON THE ACCOUNT.
- THE PRIMARY SOCIAL SECURITY OR EMPLOYER IDENTIFICATION NUMBER AS REGISTERED
ON THE ACCOUNT.
<PAGE>
PLEASE NOTE THAT CALVERT WILL NOT BE RESPONSIBLE FOR ANY ACCOUNT LOSSES DUE TO
TELEPHONE FRAUD, SO LONG AS WE HAVE TAKEN REASONABLE STEPS TO VERIFY THE
CALLER'S IDENTITY. IF YOU WISH TO REMOVE THE TELEPHONE REDEMPTION FEATURE FROM
YOUR ACCOUNT, PLEASE NOTIFY US IN WRITING.
EXCHANGES
CALVERT GROUP OFFERS A WIDE VARIETY OF INVESTMENT OPTIONS THAT INCLUDES COMMON
STOCK FUNDS, TAX-EXEMPT AND CORPORATE BOND FUNDS, AND MONEY MARKET FUNDS (CALL
YOUR FINANCIAL PROFESSIONAL OR CALVERT REPRESENTATIVE FOR MORE INFORMATION). WE
MAKE IT EASY FOR YOU TO PURCHASE SHARES IN OTHER CALVERT FUNDS IF YOUR
INVESTMENT GOALS CHANGE. THE EXCHANGE PRIVILEGE OFFERS FLEXIBILITY BY ALLOWING
YOU TO EXCHANGE SHARES ON WHICH YOU HAVE ALREADY PAID A SALES CHARGE FROM ONE
CALVERT MUTUAL FUND TO ANOTHER AT NO ADDITIONAL SALES CHARGE. NOTE: THE
REDEMPTION FEE (PAYABLE TO THE FUND) STILL APPLIES AND IS CHARGED AT THE TIME OF
THE REDEMPTION FROM THE FUND.
COMPLETE AND SIGN AN ACCOUNT APPLICATION, TAKING CARE TO REGISTER YOUR NEW
ACCOUNT IN THE SAME NAME AND TAXPAYER IDENTIFICATION NUMBER AS YOUR EXISTING
CALVERT ACCOUNT(S). EXCHANGE INSTRUCTIONS MAY THEN BE GIVEN BY TELEPHONE IF
TELEPHONE REDEMPTIONS HAVE BEEN AUTHORIZED AND THE SHARES ARE NOT IN CERTIFICATE
FORM.
BEFORE YOU MAKE AN EXCHANGE, PLEASE NOTE THE FOLLOWING:
EACH EXCHANGE REPRESENTS THE SALE OF SHARES OF ONE FUND AND THE PURCHASE OF
SHARES OF ANOTHER. THEREFORE, YOU COULD REALIZE A TAXABLE GAIN OR LOSS.
YOU MAY EXCHANGE SHARES ACQUIRED BY REINVESTMENT OF DIVIDENDS OR DISTRIBUTIONS
INTO ANOTHER CALVERT FUND AT NO ADDITIONAL CHARGE.
SHARES MAY ONLY BE EXCHANGED FOR SHARES OF THE SAME CLASS OF ANOTHER CALVERT
FUND.
NO CDSC IS IMPOSED ON EXCHANGES OF SHARES SUBJECT TO A CDSC AT THE TIME OF THE
EXCHANGE. THE APPLICABLE CDSC IS IMPOSED AT THE TIME THE SHARES ACQUIRED BY THE
EXCHANGE ARE REDEEMED.
BANK HOLIDAYS: ON ANY DAY CALVERT IS OPEN BUT THE FUND'S CUSTODIAN BANK IS
CLOSED (E.G., COLUMBUS DAY AND VETERAN'S DAY) EXCHANGE REQUESTS INTO OR OUT OF A
MONEY MARKET FUND WILL BE PRICED AT THE NEXT-DETERMINED NAV, BUT WILL NOT
RECEIVE ANY DIVIDEND IN THE MONEY MARKET FUND UNTIL THE NEXT DAY THE FUND'S
CUSTODIAN BANK IS OPEN.
<PAGE>
THE FUND AND THE DISTRIBUTOR RESERVE THE RIGHT AT ANY TIME TO REJECT OR CANCEL
ANY PART OF ANY PURCHASE OR EXCHANGE ORDER; MODIFY ANY TERMS OR CONDITIONS OF
PURCHASE OF SHARES OF THE FUND; OR WITHDRAW ALL OR ANY PART OF THE OFFERING MADE
BY THIS PROSPECTUS. TO PROTECT THE INTERESTS OF INVESTORS, THE FUND AND THE
DISTRIBUTOR MAY REJECT ANY ORDER CONSIDERED MARKET-TIMING ACTIVITY.
THE FUND RESERVES THE RIGHT TO TERMINATE OR MODIFY THE EXCHANGE PRIVILEGE WITH
60 DAYS' WRITTEN NOTICE.
ELECTRONIC DELIVERY OF PROSPECTUSES AND SHAREHOLDER REPORTS
YOU MAY REQUEST TO RECEIVE ELECTRONIC DELIVERY OF PROSPECTUSES AND ANNUAL AND
SEMI ANNUAL REPORTS.
COMBINED GENERAL MAILINGS (HOUSEHOLDING)
MULTIPLE ACCOUNTS WITH THE SAME SOCIAL SECURITY NUMBER WILL RECEIVE ONE MAILING
PER HOUSEHOLD OF INFORMATION SUCH AS PROSPECTUSES AND SEMI-ANNUAL AND ANNUAL
REPORTS. YOU MAY REQUEST FURTHER GROUPING OF ACCOUNTS TO RECEIVE FEWER MAILINGS.
SEPARATE STATEMENTS WILL BE GENERATED FOR EACH SEPARATE ACCOUNT AND WILL BE
MAILED IN ONE ENVELOPE FOR EACH COMBINATION ABOVE.
SPECIAL SERVICES AND CHARGES
THE FUND PAYS FOR SHAREHOLDER SERVICES BUT NOT FOR SPECIAL SERVICES THAT ARE
REQUIRED BY A FEW SHAREHOLDERS, SUCH AS A REQUEST FOR A HISTORICAL TRANSCRIPT OF
AN ACCOUNT OR A STOP PAYMENT ON A DRAFT. YOU MAY BE REQUIRED TO PAY A FEE FOR
THESE SPECIAL SERVICES. IF YOU ARE PURCHASING SHARES THROUGH A PROGRAM OF
SERVICES OFFERED BY A BROKER/DEALER OR FINANCIAL INSTITUTION, YOU SHOULD READ
THE PROGRAM MATERIALS TOGETHER WITH THIS PROSPECTUS. CERTAIN FEATURES MAY BE
MODIFIED IN THESE PROGRAMS. INVESTORS MAY BE CHARGED A FEE IF THEY EFFECT
TRANSACTIONS IN FUND SHARES THROUGH A FINANCIAL INTERMEDIARY.
ACCOUNT MAINTENANCE FEE
PLEASE MAINTAIN A BALANCE IN EACH OF YOUR FUND ACCOUNTS OF AT LEAST $5,000 PER
CLASS ($2,000 FOR IRA ACCOUNTS). IF THE BALANCE IN YOUR ACCOUNT FALLS BELOW THE
MINIMUM (FOR ANY REASON, INCLUDING A DECLINE IN THE VALUE OF THE FUND'S SHARES),
YOU WILL BE CHARGED AN ANNUAL FEE OF $20. IF YOU CLOSE YOUR ACCOUNT DURING THE
YEAR, THE $20 WILL BE CHARGED AT THAT TIME. TO PROTECT THE INTEREST OF
INVESTORS, THE FUND MAY REJECT CERTAIN SMALL RETIREMENT PLAN ACCOUNTS WHERE THE
RECORDKEEPING AND TRANSACTION EXPENSES WOULD BE A BURDEN TO OTHER FUND
SHAREHOLDERS.
<PAGE>
DIVIDENDS, CAPITAL GAINS AND TAXES
THE FUND PAYS DIVIDENDS FROM ITS NET INVESTMENT INCOME ANNUALLY. NET INVESTMENT
INCOME CONSISTS OF INTEREST INCOME, NET SHORT-TERM CAPITAL GAINS, IF ANY, AND
DIVIDENDS DECLARED AND PAID ON INVESTMENTS, LESS EXPENSES. DISTRIBUTIONS OF NET
SHORT-TERM CAPITAL GAINS (TREATED AS DIVIDENDS FOR TAX PURPOSES) AND NET
LONG-TERM CAPITAL GAINS, IF ANY, ARE NORMALLY PAID ONCE A YEAR; HOWEVER, THE
FUND DOES NOT ANTICIPATE MAKING ANY SUCH DISTRIBUTIONS UNLESS AVAILABLE CAPITAL
LOSS CARRYOVERS HAVE BEEN USED OR HAVE EXPIRED. DIVIDEND AND DISTRIBUTION
PAYMENTS WILL VARY BETWEEN CLASSES.
DIVIDEND PAYMENT OPTIONS
DIVIDENDS AND ANY DISTRIBUTIONS ARE AUTOMATICALLY REINVESTED IN THE SAME FUND AT
NAV (WITHOUT SALES CHARGE), UNLESS YOU ELECT TO HAVE AMOUNTS OF $10 OR MORE PAID
IN CASH (BY CHECK OR BY CALVERT MONEY CONTROLLER). DIVIDENDS AND DISTRIBUTIONS
FROM ANY CALVERT GROUP FUND MAY BE AUTOMATICALLY INVESTED IN AN IDENTICALLY
REGISTERED ACCOUNT IN THE SAME SHARE CLASS OF ANY OTHER CALVERT GROUP FUND AT
NAV. IF REINVESTED IN THE SAME ACCOUNT, NEW SHARES WILL BE PURCHASED AT NAV ON
THE REINVESTMENT DATE, WHICH IS GENERALLY 1 TO 3 DAYS PRIOR TO THE PAYMENT DATE.
YOU MUST NOTIFY THE FUNDS IN WRITING TO CHANGE YOUR PAYMENT OPTIONS. IF YOU
ELECT TO HAVE DIVIDENDS AND/OR DISTRIBUTIONS PAID IN CASH, AND THE US POSTAL
SERVICE RETURNS THE CHECK AS UNDELIVERABLE, IT, AS WELL AS FUTURE DIVIDENDS AND
DISTRIBUTIONS, WILL BE REINVESTED IN ADDITIONAL SHARES. NO DIVIDENDS WILL ACCRUE
ON AMOUNTS REPRESENTED BY UNCASHED DISTRIBUTION OR REDEMPTION CHECKS.
BUYING A DIVIDEND
AT THE TIME OF PURCHASE, THE SHARE PRICE OF EACH CLASS MAY REFLECT UNDISTRIBUTED
INCOME, CAPITAL GAINS OR UNREALIZED APPRECIATION OF SECURITIES. ANY INCOME OR
CAPITAL GAINS FROM THESE AMOUNTS WHICH ARE LATER DISTRIBUTED TO YOU ARE FULLY
TAXABLE. ON THE RECORD DATE FOR A DISTRIBUTION, SHARE VALUE IS REDUCED BY THE
AMOUNT OF THE DISTRIBUTION. IF YOU BUY SHARES JUST BEFORE THE RECORD DATE
("BUYING A DIVIDEND") YOU WILL PAY THE FULL PRICE FOR THE SHARES AND THEN
RECEIVE A PORTION OF THE PRICE BACK AS A TAXABLE DISTRIBUTION.
FEDERAL TAXES
IN JANUARY, THE FUND WILL MAIL YOU FORM 1099-DIV INDICATING THE FEDERAL TAX
STATUS OF DIVIDENDS AND ANY CAPITAL GAIN DISTRIBUTIONS PAID TO YOU DURING THE
PAST YEAR. GENERALLY, DIVIDENDS AND DISTRIBUTIONS ARE TAXABLE IN THE YEAR THEY
ARE PAID. HOWEVER, ANY DIVIDENDS AND DISTRIBUTIONS PAID IN JANUARY BUT DECLARED
DURING THE PRIOR THREE MONTHS ARE TAXABLE IN THE YEAR DECLARED. DIVIDENDS AND
DISTRIBUTIONS ARE TAXABLE TO YOU REGARDLESS OF WHETHER THEY ARE TAKEN IN CASH OR
REINVESTED. DIVIDENDS, INCLUDING SHORT-TERM CAPITAL GAINS, ARE TAXABLE AS
ORDINARY INCOME. DISTRIBUTIONS FROM LONG-TERM CAPITAL GAINS ARE TAXABLE AS
LONG-TERM CAPITAL GAINS, REGARDLESS OF HOW LONG YOU HAVE OWNED SHARES.
<PAGE>
YOU MAY REALIZE A CAPITAL GAIN OR LOSS WHEN YOU SELL OR EXCHANGE SHARES. THIS
CAPITAL GAIN OR LOSS WILL BE SHORT- OR LONG-TERM, DEPENDING ON HOW LONG YOU HAVE
OWNED THE SHARES WHICH WERE SOLD. IN JANUARY, THE FUND WILL MAIL YOU FORM 1099-B
INDICATING THE TOTAL AMOUNT OF ALL SALES, INCLUDING EXCHANGES. YOU SHOULD KEEP
YOUR ANNUAL YEAR-END ACCOUNT STATEMENTS TO DETERMINE THE COST (BASIS) OF THE
SHARES TO REPORT ON YOUR TAX RETURNS.
OTHER TAX INFORMATION
IN ADDITION TO FEDERAL TAXES, YOU MAY BE SUBJECT TO STATE OR LOCAL TAXES ON YOUR
INVESTMENT, DEPENDING ON THE LAWS IN YOUR AREA. YOU WILL BE NOTIFIED TO THE
EXTENT, IF ANY, THAT DIVIDENDS REFLECT INTEREST RECEIVED FROM US GOVERNMENT
SECURITIES. SUCH DIVIDENDS MAY BE EXEMPT FROM CERTAIN STATE INCOME TAXES.
TAXPAYER IDENTIFICATION NUMBER
IF WE DO NOT HAVE YOUR CORRECT SOCIAL SECURITY OR TAXPAYER IDENTIFICATION NUMBER
("TIN") AND A SIGNED CERTIFIED APPLICATION OR FORM W-9, FEDERAL LAW REQUIRES US
TO WITHHOLD 31% OF YOUR REPORTABLE DIVIDENDS, AND 31% OF CERTAIN REDEMPTIONS. IN
ADDITION, YOU MAY BE SUBJECT TO A FINE BY THE INTERNAL REVENUE SERVICE. YOU WILL
ALSO BE PROHIBITED FROM OPENING ANOTHER ACCOUNT BY EXCHANGE. CALVERT GROUP
RESERVES THE RIGHT TO REJECT ANY NEW ACCOUNT OR ANY PURCHASE ORDER FOR FAILURE
TO SUPPLY A CERTIFIED TIN.
<PAGE>
HOW TO SELL SHARES
YOU MAY REDEEM ALL OR A PORTION OF YOUR SHARES ON ANY DAY YOUR FUND IS OPEN FOR
BUSINESS, PROVIDED THE AMOUNT REQUESTED IS NOT ON HOLD. WHEN YOU PURCHASE BY
CHECK OR WITH CALVERT MONEY CONTROLLER (ELECTRONIC FUNDS TRANSFER), THE PURCHASE
MAY BE ON HOLD FOR UP TO 10 BUSINESS DAYS FROM THE DATE OF RECEIPT. DURING THE
HOLD PERIOD, REDEMPTIONS PROCEEDS WILL NOT BE SENT UNTIL THE TRANSFER AGENT IS
REASONABLY SATISFIED THAT THE PURCHASE PAYMENT HAS BEEN COLLECTED. YOUR SHARES
WILL BE REDEEMED AT THE NAV NEXT CALCULATED (LESS ANY APPLICABLE CDSC)AFTER YOUR
REDEMPTION REQUEST IS RECEIVED BY THE TRANSFER AGENT IN GOOD ORDER (SEE BELOW).
THE PROCEEDS WILL NORMALLY BE SENT TO YOU ON THE NEXT BUSINESS DAY, BUT IF
MAKING IMMEDIATE PAYMENT COULD ADVERSELY AFFECT YOUR FUND, IT MAY TAKE UP TO
SEVEN (7) DAYS TO MAKE PAYMENT. CALVERT MONEY CONTROLLER REDEMPTIONS GENERALLY
WILL BE CREDITED TO YOUR BANK ACCOUNT BY THE SECOND BUSINESS DAY AFTER YOUR
PHONE CALL. THE FUND HAS THE RIGHT TO REDEEM SHARES IN ASSETS OTHER THAN CASH
FOR REDEMPTION AMOUNTS EXCEEDING, IN ANY 90-DAY PERIOD, $250,000 OR 1% OF THE
NET ASSET VALUE OF THE AFFECTED FUND, WHICHEVER IS LESS. WHEN THE NYSE IS CLOSED
(OR WHEN TRADING IS RESTRICTED) FOR ANY REASON OTHER THAN ITS CUSTOMARY WEEKEND
OR HOLIDAY CLOSINGS, OR UNDER ANY EMERGENCY CIRCUMSTANCES AS DETERMINED BY THE
SECURITIES AND EXCHANGE COMMISSION, REDEMPTIONS MAY BE SUSPENDED OR PAYMENT
DATES POSTPONED. PLEASE NOTE THAT THERE ARE SOME FEDERAL HOLIDAYS, HOWEVER, SUCH
AS COLUMBUS DAY AND VETERANS' DAY, WHEN THE NYSE IS OPEN AND THE FUND IS OPEN
BUT REDEMPTIONS CANNOT BE MAILED OR WIRED BECAUSE THE POST OFFICES AND BANKS ARE
CLOSED.
REQUEST IN "GOOD ORDER"
ALL REDEMPTION REQUESTS MUST BE RECEIVED BY THE TRANSFER AGENT IN "GOOD ORDER."
THIS MEANS THAT YOUR REQUEST MUST INCLUDE:
- THE FUND NAME AND ACCOUNT NUMBER
- THE AMOUNT OF THE TRANSACTION (IN DOLLARS OR SHARES).
- SIGNATURES OF ALL OWNERS EXACTLY AS REGISTERED ON THE ACCOUNT (FOR MAIL
REQUESTS).
- SIGNATURE GUARANTEES (IF REQUIRED).*
- ANY SUPPORTING LEGAL DOCUMENTATION THAT MAY BE REQUIRED.
- ANY OUTSTANDING CERTIFICATES REPRESENTING SHARES TO BE REDEEMED.
*FOR INSTANCE, A SIGNATURE GUARANTEE MUST BE PROVIDED BY ALL REGISTERED ACCOUNT
SHAREHOLDERS WHEN REDEMPTION PROCEEDS ARE SENT TO A DIFFERENT PERSON OR ADDRESS.
A SIGNATURE GUARANTEE CAN BE OBTAINED FROM MOST COMMERCIAL AND SAVINGS BANKS,
CREDIT UNIONS, TRUST COMPANIES, OR MEMBER FIRMS OF A U.S. STOCK EXCHANGE.
TRANSACTIONS ARE PROCESSED AT THE NEXT DETERMINED SHARE PRICE AFTER THE TRANSFER
AGENT HAS RECEIVED ALL REQUIRED INFORMATION.
<PAGE>
FOLLOW THESE SUGGESTIONS TO ENSURE TIMELY PROCESSING OF YOUR REDEMPTION REQUEST:
BY TELEPHONE
YOU MAY REDEEM SHARES FROM YOUR ACCOUNT BY TELEPHONE AND HAVE YOUR MONEY MAILED
TO YOUR ADDRESS OF RECORD OR ELECTRONICALLY TRANSFERRED OR WIRED TO A BANK YOU
HAVE PREVIOUSLY AUTHORIZED. SEE "OTHER CALVERT GROUP FEATURES - TELEPHONE
TRANSACTIONS."
WRITTEN REQUESTS
CALVERT GROUP, P.O. BOX 219544, KANSAS CITY, MO 64121-9544
YOUR LETTER SHOULD INCLUDE YOUR ACCOUNT NUMBER AND FUND AND THE NUMBER OF SHARES
OR THE DOLLAR AMOUNT YOU ARE REDEEMING. PLEASE PROVIDE A DAYTIME TELEPHONE
NUMBER, IF POSSIBLE, FOR US TO CALL IF WE HAVE QUESTIONS. IF THE MONEY IS BEING
SENT TO A NEW BANK, PERSON, OR ADDRESS OTHER THAN THE ADDRESS OF RECORD, YOUR
LETTER MUST BE SIGNATURE GUARANTEED.
CORPORATIONS AND ASSOCIATIONS
YOUR LETTER OF INSTRUCTION AND CORPORATE RESOLUTION SHOULD BE SIGNED BY
PERSON(S) AUTHORIZED TO ACT ON THE ACCOUNT, ACCOMPANIED BY SIGNATURE
GUARANTEE(S).
TRUSTS
YOUR LETTER OF INSTRUCTION SHOULD BE SIGNED BY THE TRUSTEE(S) (AS TRUSTEE(S)),
WITH A SIGNATURE GUARANTEE. (IF THE TRUSTEE'S NAME IS NOT REGISTERED ON YOUR
ACCOUNT, PLEASE PROVIDE A COPY OF THE TRUST DOCUMENT, CERTIFIED WITHIN THE LAST
60 DAYS.)
THROUGH YOUR DEALER
YOUR DEALER MUST RECEIVE YOUR REQUEST BEFORE THE CLOSE OF REGULAR TRADING ON THE
NYSE TO RECEIVE THAT DAY'S NAV. YOUR DEALER WILL BE RESPONSIBLE FOR FURNISHING
ALL NECESSARY DOCUMENTATION TO CALVERT GROUP AND MAY CHARGE YOU FOR SERVICES
PROVIDED.
<PAGE>
EXHIBIT A
REDUCED SALES CHARGES (CLASS A ONLY)
YOU MAY QUALIFY FOR A REDUCED SALES CHARGE THROUGH SEVERAL PURCHASE PLANS
AVAILABLE. YOU MUST NOTIFY THE FUND AT THE TIME OF PURCHASE TO TAKE ADVANTAGE OF
THE REDUCED SALES CHARGE.
RIGHTS OF ACCUMULATION CAN BE APPLIED TO SEVERAL ACCOUNTS
CLASS A SALES CHARGE BREAKPOINTS ARE AUTOMATICALLY CALCULATED FOR EACH ACCOUNT
BASED ON THE HIGHER OF COST OR CURRENT VALUE OF SHARES PREVIOUSLY PURCHASED.
THIS PRIVILEGE CAN BE APPLIED TO A FAMILY GROUP OR OTHER QUALIFIED GROUP* UPON
REQUEST. SHARES COULD THEN BE PURCHASED AT THE REDUCED SALES CHARGE WHICH
APPLIES TO THE ENTIRE GROUP; THAT IS, BASED ON THE HIGHER OF COST OR CURRENT
VALUE OF SHARES PREVIOUSLY PURCHASED AND CURRENTLY HELD BY ALL THE MEMBERS OF
THE GROUP.
* A "QUALIFIED GROUP" IS ONE WHICH:
1. HAS BEEN IN EXISTENCE FOR MORE THAN SIX MONTHS, AND
2. HAS A PURPOSE OTHER THAN ACQUIRING SHARES AT A DISCOUNT, AND
3. SATISFIES UNIFORM CRITERIA WHICH ENABLE CDI AND BROKERS OFFERING SHARES
TO REALIZE ECONOMIES OF SCALE IN DISTRIBUTING SUCH SHARES.
A QUALIFIED GROUP MUST HAVE MORE THAN 10 MEMBERS, MUST BE AVAILABLE TO ARRANGE
FOR GROUP MEETINGS BETWEEN REPRESENTATIVES OF CDI OR BROKERS DISTRIBUTING
SHARES, MUST AGREE TO INCLUDE SALES AND OTHER MATERIALS RELATED TO THE FUNDS IN
ITS PUBLICATIONS AND MAILINGS TO MEMBERS AT REDUCED OR NO COST TO CDI OR
BROKERS. A PENSION PLAN IS NOT A QUALIFIED GROUP FOR RIGHTS OF ACCUMULATION.
LETTER OF INTENT
IF YOU (OR YOUR GROUP, AS DESCRIBED ABOVE) PLAN TO PURCHASE $50,000 OR MORE OF
CALVERT FUND SHARES OVER THE NEXT 13 MONTHS, YOUR SALES CHARGE MAY BE REDUCED
THROUGH A "LETTER OF INTENT." YOU PAY THE LOWER SALES CHARGE APPLICABLE TO THE
TOTAL AMOUNT YOU PLAN TO INVEST OVER THE 13-MONTH PERIOD, EXCLUDING ANY MONEY
MARKET FUND PURCHASES, INSTEAD OF THE HIGHER 4.75% SALES CHARGE. PART OF YOUR
SHARES WILL BE HELD IN ESCROW, SO THAT IF YOU DO NOT INVEST THE AMOUNT
INDICATED, YOU WILL HAVE TO PAY THE SALES CHARGE APPLICABLE TO THE SMALLER
INVESTMENT ACTUALLY MADE. FOR MORE INFORMATION, SEE THE SAI.
RETIREMENT PLANS UNDER SECTION 457, SECTION 403(B)(7), OR SECTION 401(K)
THERE IS NO SALES CHARGE ON SHARES PURCHASED FOR THE BENEFIT OF A RETIREMENT
PLAN UNDER SECTION 457 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED
("CODE"), OR FOR A PLAN QUALIFYING UNDER SECTION 403(B) OR 401(K) OF THE CODE
IF, AT THE TIME OF PURCHASE, (I) CALVERT GROUP HAS BEEN NOTIFIED IN WRITING THAT
THE 403(B)
<PAGE>
OR 401(K) PLAN HAS AT LEAST 200 ELIGIBLE EMPLOYEES AND IS NOT SPONSORED BY A
K-12 SCHOOL DISTRICT, OR (II) THE COST OR CURRENT VALUE OF SHARES A 401(K) PLAN
HAS IN CALVERT GROUP OF FUNDS (EXCEPT MONEY MARKET FUNDS) IS AT LEAST $1
MILLION.
NEITHER THE FUND, NOR CALVERT DISTRIBUTORS, INC. ("CDI"), NOR ANY AFFILIATE
THEREOF WILL REIMBURSE A PLAN OR PARTICIPANT FOR ANY SALES CHARGES PAID PRIOR TO
RECEIPT OF SUCH WRITTEN COMMUNICATION AND CONFIRMATION BY CALVERT GROUP. PLAN
ADMINISTRATORS SHOULD SEND REQUESTS FOR THE WAIVER OF SALES CHARGES BASED ON THE
ABOVE CONDITIONS TO: CALVERT GROUP RETIREMENT PLANS, 4550 MONTGOMERY AVENUE,
SUITE 1000N, BETHESDA, MARYLAND 20814.
OTHER CIRCUMSTANCES
THERE IS NO SALES CHARGE ON SHARES OF ANY FUND OF THE CALVERT GROUP OF FUNDS
SOLD TO (I) CURRENT OR RETIRED DIRECTORS, TRUSTEES, OR OFFICERS OF THE CALVERT
GROUP OF FUNDS, EMPLOYEES OF CALVERT GROUP, LTD. AND ITS AFFILIATES, OR THEIR
FAMILY MEMBERS; (II) CSIF ADVISORY COUNCIL MEMBERS, DIRECTORS, OFFICERS, AND
EMPLOYEES OF ANY SUBADVISOR FOR THE CALVERT GROUP OF FUNDS, EMPLOYEES OF
BROKER/DEALERS DISTRIBUTING THE FUND'S SHARES AND IMMEDIATE FAMILY MEMBERS OF
THE COUNCIL, SUBADVISOR, OR BROKER/DEALER; (III) PURCHASES MADE THROUGH A
REGISTERED INVESTMENT ADVISOR; (IV) TRUST DEPARTMENTS OF BANKS OR SAVINGS
INSTITUTIONS FOR TRUST CLIENTS OF SUCH BANK OR INSTITUTION, (V) PURCHASES
THROUGH A BROKER MAINTAINING AN OMNIBUS ACCOUNT WITH THE FUND, PROVIDED THE
PURCHASES ARE MADE BY (A) INVESTMENT ADVISORS OR FINANCIAL PLANNERS PLACING
TRADES FOR THEIR OWN ACCOUNTS (OR THE ACCOUNTS OF THEIR CLIENTS) AND WHO CHARGE
A MANAGEMENT, CONSULTING, OR OTHER FEE FOR THEIR SERVICES; OR (B) CLIENTS OF
SUCH INVESTMENT ADVISORS OR FINANCIAL PLANNERS WHO PLACE TRADES FOR THEIR OWN
ACCOUNTS IF SUCH ACCOUNTS ARE LINKED TO THE MASTER ACCOUNT OF SUCH INVESTMENT
ADVISOR OR FINANCIAL PLANNER ON THE BOOKS AND RECORDS OF THE BROKER OR AGENT; OR
(C) RETIREMENT AND DEFERRED COMPENSATION PLANS AND TRUSTS, INCLUDING, BUT NOT
LIMITED TO, THOSE DEFINED IN SECTION 401(A) OR SECTION 403(B) OF THE I.R.C., AND
"RABBI TRUSTS."
DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS FROM OTHER CALVERT GROUP FUNDS
YOU MAY PREARRANGE TO HAVE YOUR DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS FROM
ANY CALVERT GROUP FUND AUTOMATICALLY INVESTED IN ANOTHER ACCOUNT WITH NO
ADDITIONAL SALES CHARGE.
PURCHASES MADE AT NAV
EXCEPT FOR MONEY MARKET FUNDS, IF YOU MAKE A PURCHASE AT NAV, YOU MAY EXCHANGE
THAT AMOUNT TO ANOTHER CALVERT GROUP FUND AT NO ADDITIONAL SALES CHARGE.
<PAGE>
TRANSFERS FROM OTHER LOAD MUTUAL FUNDS
YOU MAY TRANSFER FUNDS INVESTED IN ANOTHER LOAD MUTUAL FUND TO THE FUND AT NAV,
THROUGH DECEMBER 31, 2000. INSTRUCTIONS INFORMING THE TRANSFER AGENT TO PROCESS
THE PURCHASE ORDER AT NAV MUST BE RECEIVED AT THE TIME THE PURCHASE IS MADE. IF
A NSCC TRADE, IT MUST BE PLACED AT NAV BY THE BROKER AT THE TIME THE ORDER IS
PLACED. CHECK YOUR TRADE CONFIRMATION TO INSURE PROPER PROCESSING.
REINSTATEMENT PRIVILEGE
IF YOU REDEEM SHARES AND THEN WITHIN 60 DAYS DECIDE TO REINVEST IN THE SAME
FUND, YOU MAY DO SO AT THE NET ASSET VALUE NEXT COMPUTED AFTER THE REINVESTMENT
ORDER IS RECEIVED, WITHOUT A SALES CHARGE. YOU MAY USE THE REINSTATEMENT
PRIVILEGE ONLY ONCE. THE FUND RESERVES THE RIGHT TO MODIFY OR ELIMINATE THIS
PRIVILEGE.
<PAGE>
EXHIBIT B
SERVICE FEES AND OTHER ARRANGEMENTS WITH DEALERS
CALVERT DISTRIBUTORS, INC., THE FUND'S UNDERWRITER, PAYS DEALERS A COMMISSION,
OR REALLOWANCE (EXPRESSED AS A PERCENTAGE OF THE OFFERING PRICE FOR CLASS A, AND
A PERCENTAGE OF AMOUNT INVESTED FOR CLASS B AND C) WHEN YOU PURCHASE SHARES. CDI
ALSO PAYS DEALERS AN ONGOING SERVICE FEE WHILE YOU OWN SHARES OF THAT FUND
(EXPRESSED AS AN ANNUAL PERCENTAGE RATE OF AVERAGE DAILY NET ASSETS HELD IN
CALVERT ACCOUNTS BY THAT DEALER). THE TABLE BELOW SHOWS THE AMOUNT OF PAYMENT
WHICH DIFFERS DEPENDING ON THE CLASS.
MAXIMUM COMMISSION/SERVICE FEES
CLASS A CLASS B* CLASS C**
4.00%/0.25% 4.00%/0.25% 1.00%/1.00%
*CLASS B SERVICE FEES BEGINS TO ACCRUE IN 13TH MONTH.
**CLASS C PAYS DEALERS A SERVICE FEE OF 0.25% AND ADDITIONAL COMPENSATION OF
0.75% FOR A TOTAL OF 1.00%. BEGINS TO ACCRUE IN 13TH MONTH.
OCCASIONALLY, CDI MAY REALLOW TO DEALERS THE FULL FRONT-END SALES CHARGE. CDI
MAY ALSO PAY ADDITIONAL CONCESSIONS, INCLUDING NON-CASH PROMOTIONAL INCENTIVES,
SUCH AS MERCHANDISE OR TRIPS, TO BROKERS EMPLOYING REGISTERED REPRESENTATIVES
WHO HAVE SOLD OR ARE EXPECTED TO SELL A MINIMUM DOLLAR AMOUNT OF SHARES OF THE
FUNDS AND/OR SHARES OF OTHER FUNDS UNDERWRITTEN BY CDI. CDI MAY MAKE EXPENSE
REIMBURSEMENTS FOR SPECIAL TRAINING OF A BROKER'S REGISTERED REPRESENTATIVES,
ADVERTISING OR EQUIPMENT, OR TO DEFRAY THE EXPENSES OF SALES CONTESTS. CAMCO,
CDI, OR THEIR AFFILIATES MAY PAY, FROM THEIR OWN RESOURCES, CERTAIN
BROKER-DEALERS AND/OR OTHER PERSONS, FOR THE SALE AND DISTRIBUTION OF THE
SECURITIES OR FOR SERVICES TO THE FUND. THESE AMOUNTS MAY BE SIGNIFICANT.
PAYMENTS MAY INCLUDE ADDITIONAL COMPENSATION BEYOND THE REGULARLY SCHEDULED
RATES, AND FINDER'S FEES. CDI PAYS DEALERS A FINDER'S FEE ON SHARES PURCHASED AT
NAV IN ACCOUNTS WITH $1 MILLION OR MORE. THE FINDER'S FEE IS 1% OF THE NAV
PURCHASE AMOUNT ON THE FIRST $2 MILLION, 0.80% ON $2 TO $3 MILLION, 0.50% ON $3
TO $50 MILLION, .25% ON $50 TO $100 MILLION, AND 0.15% OVER $100 MILLION. IF A
FINDER'S FEE IS PAID, THEN THE SERVICE FEE BEGINS IN THE 13TH MONTH AFTER
PURCHASE. ALL PAYMENTS WILL BE IN COMPLIANCE WITH THE RULES OF THE NATIONAL
ASSOCIATION OF SECURITIES DEALERS, INC.
<PAGE>
TO OPEN AN ACCOUNT:
800-368-2748
PERFORMANCE AND PRICES:
WWW.CALVERT.COM
SERVICE FOR EXISTING ACCOUNTS:
SHAREHOLDERS 800-368-2745
BROKERS 800-368-2746
TDD FOR HEARING-IMPAIRED:
800-541-1524
BRANCH OFFICE:
4550 MONTGOMERY AVENUE
SUITE 1000N
BETHESDA, MD 20814
REGISTERED, CERTIFIED OR
OVERNIGHT MAIL:
CALVERT GROUP
C/O NFDS
330 WEST 9TH STREET
KANSAS CITY, MO 64105
PRINCIPAL UNDERWRITER
CALVERT DISTRIBUTORS, INC.
4550 MONTGOMERY AVENUE
SUITE 1000N
BETHESDA, MD 20814
<PAGE>
FOR INVESTORS WHO WANT MORE INFORMATION ABOUT THE FUND, THE FOLLOWING DOCUMENTS
ARE AVAILABLE FREE UPON REQUEST:
ANNUAL/SEMI-ANNUAL REPORTS: ADDITIONAL INFORMATION ABOUT THE FUND'S INVESTMENTS
WILL BE AVAILABLE IN THE FUND'S ANNUAL AND SEMI-ANNUAL REPORTS TO SHAREHOLDERS.
IN THE FUND'S ANNUAL REPORT, YOU WILL FIND A DISCUSSION OF THE MARKET CONDITIONS
AND INVESTMENT STRATEGIES THAT SIGNIFICANTLY AFFECTED THE FUND'S PERFORMANCE
DURING ITS LAST FISCAL YEAR.
STATEMENT OF ADDITIONAL INFORMATION (SAI): THE SAI FOR THE FUND PROVIDES MORE
DETAILED INFORMATION ABOUT THE FUND AND IS INCORPORATED INTO THIS PROSPECTUS BY
REFERENCE.
YOU CAN GET FREE COPIES OF REPORTS AND SAIS, REQUEST OTHER INFORMATION AND
DISCUSS YOUR QUESTIONS ABOUT THE FUND BY CONTACTING YOUR FINANCIAL PROFESSIONAL,
OR THE FUND AT:
CALVERT GROUP
4550 MONTGOMERY AVE, SUITE 1000N
BETHESDA, MD. 20814
TELEPHONE: 1-800-368-2748
CALVERT GROUP WEB-SITE
WWW.CALVERT.COM
YOU CAN REVIEW THE FUND'S REPORT AND SAI AT THE PUBLIC REFERENCE ROOM OF THE
SECURITIES AND EXCHANGE COMMISSION. YOU CAN GET TEXT-ONLY COPIES:
FOR A FEE, BY WRITING TO OR CALLING THE PUBLIC REFERENCE SECTION OF THE
COMMISSION, WASHINGTON, D.C. 20549-0102, TELEPHONE: 202-942-8090.
FREE FROM THE COMMISSION'S INTERNET WEBSITE AT HTTP://WWW.SEC.GOV.
INVESTMENT COMPANY ACT FILE NO. 811-09877
<PAGE>
PROSPECTUS
, 2000
CALVERT SOCIAL INDEX FUND
CLASS I (INSTITUTIONAL) SHARES
TABLE OF CONTENTS
ABOUT THE FUND
INVESTMENT OBJECTIVE, STRATEGY 1
FEES AND EXPENSES 2
INVESTMENT PRACTICES AND RELATED RISKS 2
HIGH SOCIAL IMPACT INVESTMENTS 3
SPECIAL EQUITIES 3
SHAREHOLDER ADVOCACY AND SOCIAL RESPONSIBILITY 4
ABOUT YOUR INVESTMENT
SUBADVISOR 5
ADVISORY FEES 5
HOW TO OPEN AN ACCOUNT 5
IMPORTANT - HOW SHARES ARE PRICED 5
WHEN YOUR ACCOUNT WILL BE CREDITED 5
OTHER CALVERT GROUP FEATURES (EXCHANGES, MINIMUM ACCOUNT BALANCE,
ETC.) 5
DIVIDENDS, CAPITAL GAINS AND TAXES 6
HOW TO SELL SHARES 7
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION (SEC) OR ANY STATE SECURITIES COMMISSION, NOR HAS THE SEC OR
ANY STATE SECURITIES COMMISSION PASSED ON THE ACCURACY OR ADEQUACY OF THIS
PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
<PAGE>
OBJECTIVE
THE FUND SEEKS TO MATCH THE PERFORMANCE OF THE CALVERT SOCIAL INDEX, WHICH
MEASURES THE INVESTMENT RETURN OF LARGE- AND MID-CAPITALIZATION STOCKS.
PRINCIPAL INVESTMENT STRATEGIES
THE FUND EMPLOYS A PASSIVE MANAGEMENT STRATEGY DESIGNED TO TRACK, AS CLOSELY AS
POSSIBLE, THE PERFORMANCE OF THE CALVERT SOCIAL INDEX. THE FUND INTENDS TO USE
A REPLICATION INDEX METHOD, INVESTING IN EACH STOCK IN THE INDEX IN ABOUT THE
SAME PROPORTION AS REPRESENTED IN THE INDEX ITSELF. HOWEVER, BECAUSE THE FUND IS
NEW AND JUST BEGINNING OPERATIONS, IT WOULD BE VERY EXPENSIVE TO BUY AND SELL
ALL OF THE STOCKS HELD IN THE INDEX. THUS, UNTIL THE FUND'S ASSETS REACH A
CERTAIN MINIMUM ASSET LEVEL, IT WILL USE A SAMPLING TECHNIQUE OF INDEXING,
RATHER THAN THE REPLICATION METHOD. THIS MEANS THAT RATHER THAN BUY EACH STOCK
IN THE INDEX, IT WILL USE A COMPUTER PROGRAM TO INVEST IN A REPRESENTATIVE
SAMPLE OF STOCKS FROM THE INDEX THAT WILL RESEMBLE THE FULL INDEX IN TERMS OF
INDUSTRY WEIGHTINGS, MARKET CAPITALIZATION, PRICE/EARNINGS RATIO, DIVIDEND
YIELD, AND OTHER PORTFOLIO CHARACTERISTICS. ONCE THE FUND REACHES APPROXIMATELY
$20,000,000 IN ASSETS, IT WILL STOP USING THE SAMPLING TECHNIQUE AND REPLACE IT
WITH THE PERMANENT STRATEGY OF THE REPLICATION METHOD DISCUSSED ABOVE.
THE CALVERT SOCIAL INDEX
THE CALVERT SOCIAL INDEX MEASURES THE PERFORMANCE OF THOSE COMPANIES THAT MEET
THE SOCIAL INVESTMENT CRITERIA SELECTED FROM THE UNIVERSE OF APPROXIMATELY THE
1,000 LARGEST U.S. COMPANIES, BASED ON TOTAL MARKET CAPITALIZATION, LISTED ON
THE NYSE OR NASDAQ-AMEX. AS OF MAY 1, 2000, THERE WERE 468 COMPANIES IN THE
INDEX, THOUGH THIS NUMBER WILL CHANGE OVER TIME DUE TO COMPANY MERGERS OR
CHANGES DUE TO OUR EVALUATION OF AN ISSUER'S CONDUCT RELATIVE TO THE FUND'S
SOCIAL CRITERIA. THE INDEX IS RECONSTITUTED ONCE A YEAR BASED ON AN UPDATED LIST
OF THE 1000 LARGEST COMPANIES. THE INDEX IS ALSO REVIEWED QUARTERLY TO ADJUST
FOR SOCIAL CRITERIA, SECTOR WEIGHTINGS AGAINST THE 40% LIMIT ON EXPOSURE TO ANY
ONE SECTOR, SHARE ADJUSTMENTS, ETC.
THE SOCIALLY RESPONSIBLE CRITERIA FOR THE INDEX ARE DESCRIBED BELOW. CALVERT
CONTINUOUSLY EVALUATES THE PERFORMANCE OF COMPANIES INCLUDED IN THE INDEX TO
ENSURE COMPLIANCE WITH THESE CRITERIA.
ENVIRONMENT: THE INDEX EXCLUDES COMPANIES THAT HAVE POOR ENVIRONMENTAL RECORDS,
INCLUDING SIGNIFICANT COMPLIANCE AND WASTE MANAGEMENT PROBLEMS. THE INDEX
INCLUDES COMPANIES THAT HAVE STRONG PROGRAMS THAT FOCUS ON REDUCING OVERALL
ENVIRONMENTAL IMPACT. THE INDEX EXCLUDES COMPANIES SIGNIFICANTLY ENGAGED IN
NUCLEAR POWER.
LABOR RELATIONS: THE INDEX EXCLUDES COMPANIES THAT HAVE A RECORD OF EMPLOYMENT
DISCRIMINATION, ANTI-UNION ACTIVITIES OR PROVIDE UNSAFE WORKPLACES. THE INDEX
INCLUDES COMPANIES THAT HAVE A GOOD RECORD OF LABOR RELATIONS, INCLUDING STRONG
DIVERSITY PROGRAMS.
PRODUCT SAFETY: THE INDEX EXCLUDES COMPANIES THAT PRIMARILY ENGAGE IN TOBACCO,
ALCOHOL, FIREARMS OR GAMBLING. THE INDEX INCLUDES COMPANIES THAT PRODUCE HEALTHY
AND SAFE PRODUCTS AND SERVICES.
ANIMAL WELFARE: THE INDEX EXCLUDES COMPANIES THAT ABUSE ANIMALS THROUGH METHODS
OF FACTORY FARMING. THE INDEX INCLUDES CONSUMER PRODUCT COMPANIES THAT
DEMONSTRATE A REDUCTION IN THE USE OF ANIMAL TESTING, IF APPLICABLE.
MILITARY WEAPONS: THE INDEX EXCLUDES COMPANIES THAT ARE PRIMARILY ENGAGED IN
WEAPONS CONTRACTING WITH THE DEPARTMENT OF DEFENSE.
COMMUNITY RELATIONS: THE INDEX EXCLUDES COMPANIES THAT ARE NOT RESPONSIVE TO
COMMUNITIES WHERE THEY OPERATE. THE INDEX INCLUDES COMPANIES THAT ARE
RESPONSIBLE CITIZENS IN THESE COMMUNITIES.
HUMAN RIGHTS: THE INDEX EXCLUDES COMPANIES THAT DIRECTLY CONTRIBUTE TO HUMAN
RIGHTS VIOLATIONS WORLDWIDE. THE INDEX INCLUDES COMPANIES THAT HAVE ADOPTED
HUMAN RIGHTS STANDARDS IN THEIR OVERSEAS OPERATIONS.
INDIGENOUS PEOPLES RIGHTS: THE INDEX EXCLUDES COMPANIES THAT ARE SIGNIFICANTLY
ENGAGED IN A PATTERN AND PRACTICE OF VIOLATING THE RIGHTS OF INDIGENOUS PEOPLE.
THE INDEX INCLUDES COMPANIES THAT ARE ENGAGED IN POSITIVE PORTRAYALS OF NATIVE
AMERICANS AND OTHER INDIGENOUS PEOPLES.
PRINCIPAL RISKS
YOU COULD LOSE MONEY ON YOUR INVESTMENT IN THE FUND, OR THE FUND COULD
UNDERPERFORM THE STOCK MARKET FOR ANY OF THE FOLLOWING REASONS:
- THE STOCK MARKET OR THE CALVERT SOCIAL INDEX GOES DOWN
- THE INDIVIDUAL STOCKS IN THE FUND OR THE INDEX DO NOT
PERFORM AS WELL AS EXPECTED
- AN INDEX FUND HAS OPERATING EXPENSES; A MARKET INDEX
DOES NOT. THE FUND - WHILE EXPECTED TO TRACK ITS TARGET
INDEX AS CLOSELY AS POSSIBLE WHILE SATISFYING ITS INVESTMENT
AND SOCIAL CRITERIA - WILL NOT BE ABLE TO MATCH THE
PERFORMANCE OF THE INDEX EXACTLY
AN INVESTMENT IN THE FUND IS NOT A BANK DEPOSIT AND IS NOT INSURED OR GUARANTEED
BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY.
(NO PERFORMANCE RESULTS ARE SHOWN FOR THE FUND SINCE IT WAS RECENTLY ORGANIZED.)
<PAGE>
FEES AND EXPENSES
THIS TABLE DESCRIBES THE FEES AND EXPENSES THAT YOU MAY PAY IF
YOU BUY AND HOLD SHARES OF THE FUND. ANNUAL FUND OPERATING
EXPENSES ARE DEDUCTED FROM FUND ASSETS.
ANNUAL FUND OPERATING EXPENSES1
(EXPENSES DEDUCTED FROM FUND ASSETS)
MANAGEMENT FEES .33
DISTRIBUTION AND SERVICE (12B-1) FEES NONE
OTHER EXPENSES .15
TOTAL ANNUAL FUND OPERATING EXPENSES .48
FEE WAIVER AND/OR EXPENSE REIMBURSEMENT2 (.10)
NET EXPENSES .38
1 EXPENSES ARE BASED ON ESTIMATES FOR THE CURRENT FISCAL YEAR. MANAGEMENT FEES
INCLUDE THE SUBADVISORY FEES PAID BY THE ADVISOR ("CAMCO") TO THE SUBADVISOR,
AND THE ADMINISTRATIVE FEE PAID BY THE FUND TO CALVERT ADMINISTRATIVE SERVICES
COMPANY, AN AFFILIATE OF CAMCO.
2 CAMCO HAS AGREED TO LIMIT ANNUAL FUND OPERATING EXPENSES (NET OF ANY EXPENSE
OFFSET ARRANGEMENTS) THROUGH SEPTEMBER 30, 2001. THE CONTRACTUAL EXPENSE CAP IS
SHOWN AS "NET EXPENSES," THIS IS THE MAXIMUM AMOUNT OF OPERATING EXPENSES THAT
MAY BE CHARGED TO THE FUND THROUGH SEPTEMBER 30, 2001. FOR THE PURPOSES OF THIS
EXPENSE LIMIT, OPERATING EXPENSES DO NOT INCLUDE INTEREST EXPENSE, BROKERAGE
COMMISSIONS, EXTRAORDINARY EXPENSES, TAXES AND CAPITAL ITEMS. THE FUND HAS AN
OFFSET ARRANGEMENT WITH THE CUSTODIAN BANK WHEREBY THE CUSTODIAN AND TRANSFER
AGENT FEES MAY BE PAID INDIRECTLY BY CREDITS ON THE FUND'S UNINVESTED CASH
BALANCES. THESE CREDITS ARE USED TO REDUCE THE FUND'S EXPENSES.
EXAMPLE
THIS EXAMPLE IS INTENDED TO HELP YOU COMPARE THE COST OF INVESTING
IN A FUND WITH THE COST OF INVESTING IN OTHER MUTUAL FUNDS.
THE EXAMPLE ASSUMES THAT:
- YOU INVEST $1,000,000 IN THE FUND FOR THE TIME PERIODS INDICATED;
- YOUR INVESTMENT HAS A 5% RETURN EACH YEAR; AND
- THE FUND'S OPERATING EXPENSES REMAIN THE SAME.
ALTHOUGH YOUR ACTUAL COSTS MAY BE HIGHER OR LOWER, UNDER THESE ASSUMPTIONS YOUR
COSTS WOULD BE AS FOLLOWS IF THE CLASS I SHARES ARE HELD FOR 1, OR 3 YEARS:
NUMBER OF YEARS INVESTMENT IS HELD
1 YEAR 3 YEARS
$3,837 $13,340
INVESTMENT PRACTICES AND RELATED RISKS
ON THE FOLLOWING PAGES ARE BRIEF DESCRIPTIONS OF THE PRINCIPAL INVESTMENTS AND
TECHNIQUES, SUMMARIZED EARLIER, ALONG WITH CERTAIN ADDITIONAL INVESTMENT
TECHNIQUES AND THEIR RISKS. FOR EACH OF THE INVESTMENT PRACTICES LISTED, WE SHOW
THE PRINCIPAL TYPES OF RISK INVOLVED. (SEE THE PAGES FOLLOWING FOR A DESCRIPTION
OF THE TYPES OF RISKS).
CONVENTIONAL SECURITIES
STOCKS IN GENERAL. THE FUND IS SUBJECT TO STOCK MARKET RISK. STOCK PRICES
OVERALL MAY DECLINE OVER SHORT OR EVEN LONG PERIODS. THE FUND IS ALSO SUBJECT
TO INVESTMENT STYLE RISK, WHICH IS THE CHANCE THAT RETURNS FROM LARGE-AND
MID-CAPITALIZATION STOCKS WILL TRAIL RETURNS FROM OTHER ASSET CLASSES OR THE
OVERALL STOCK MARKET. EACH TYPE OF STOCK TENDS TO GO THROUGH CYCLES OF DOING
BETTER OR WORSE THAN THE STOCK MARKET IN GENERAL. FINALLY, INDIVIDUAL STOCKS
MAY LOSE VALUE FOR A VARIETY OF REASONS, EVEN WHEN THE OVERALL STOCK MARKET HAS
INCREASED. RISKS: MARKET.
FOREIGN SECURITIES. THE FUND MAY INVEST IN FOREIGN SECURITIES TO THE EXTENT
NECESSARY TO CARRY OUT ITS INVESTMENT STRATEGY OF HOLDING ALL OF THE STOCKS THAT
COMPRISE THE INDEX. THE INDEX (AND HENCE THE FUND) MAY INCLUDE SECURITIES
ISSUED BY COMPANIES LOCATED OUTSIDE THE US BUT ONLY IF THEY ARE TRADED PRIMARILY
ON THE NYSE OR AMEX/NASDAQ. THE FUND DOES NOT EXPECT TO OWN MORE THAN 5% OF
SUCH SECURITIES. RISKS: POLITICAL.
ILLIQUID SECURITIES. SECURITIES WHICH CANNOT BE READILY SOLD BECAUSE THERE IS NO
ACTIVE MARKET. THESE WOULD CONSIST PRIMARILY OF ANY HIGH SOCIAL IMPACT
INVESTMENTS AND SPECIAL EQUITIES INVESTMENTS (SEE BELOW). RISKS: LIQUIDITY,
MARKET AND TRANSACTION.
SMALL CAP STOCKS. INVESTING IN SMALL COMPANIES INVOLVES GREATER RISK THAN WITH
MORE ESTABLISHED COMPANIES. SMALL CAP STOCK PRICES ARE MORE VOLATILE AND THE
COMPANIES OFTEN HAVE LIMITED PRODUCT LINES, MARKETS, FINANCIAL RESOURCES, AND
MANAGEMENT EXPERIENCE. THE FUND DOES NOT EXPECT TO OWN MORE THAN 2% OF SUCH
SECURITIES (INCLUDING THE 1% IN SPECIAL EQUITIES). RISKS: MARKET, LIQUIDITY AND
INFORMATION.
TEMPORARY DEFENSIVE POSITIONS. DURING ADVERSE MARKET, ECONOMIC OR POLITICAL
CONDITIONS, THE FUND MAY DEPART FORM ITS PRINCIPAL INVESTMENT STRATEGIES BY
INVESTING IN HIGH QUALITY, SHORT-TERM DEBT (MONEY MARKET) INSTRUMENTS, INCLUDING
REPURCHASE AGREEMENTS AND COMMERCIAL PAPER. DURING TIMES OF ANY TEMPORARY
DEFENSIVE POSITIONS, A FUND MAY NOT BE ABLE TO ACHIEVE ITS INVESTMENT OBJECTIVE.
RISKS: OPPORTUNITY.
<PAGE>
LEVERAGED DERIVATIVE INSTRUMENTS
FUTURES CONTRACT. AGREEMENT TO BUY OR SELL A SPECIFIC AMOUNT OF A COMMODITY OR
FINANCIAL INSTRUMENT AT A PARTICULAR PRICE ON A SPECIFIC FUTURE DATE. THE FUND
WILL USE FUTURES ONLY FOR HEDGING PURPOSES AND NOT FOR SPECULATION. THE FUND MAY
INVEST IN FUTURES CONTRACTS THAT MAY NOT OTHERWISE MEET THE INDEX'S SOCIALLY
RESPONSIBLE CRITERIA. RISKS: INTEREST RATE, CURRENCY, MARKET, LEVERAGE,
CORRELATION, LIQUIDITY AND OPPORTUNITY.
HIGH SOCIAL IMPACT INVESTMENTS
HIGH SOCIAL IMPACT INVESTMENTS IS A PROGRAM THAT TARGETS A PERCENTAGE OF THE
FUND'S ASSETS (UP TO 1%) TO DIRECTLY SUPPORT THE GROWTH OF COMMUNITY-BASED
ORGANIZATIONS FOR THE PURPOSES OF PROMOTING BUSINESS CREATION, HOUSING
DEVELOPMENT, AND ECONOMIC AND SOCIAL DEVELOPMENT OF URBAN AND RURAL COMMUNITIES.
THE FUND MAY ENGAGE IN THIS PROGRAM UPON REACHING $50 MILLION IN ASSETS.THESE
TYPES OF INVESTMENTS OFFER A RATE OF RETURN BELOW THE THEN-PREVAILING MARKET
RATE, AND ARE CONSIDERED ILLIQUID, UNRATED AND MAY BE DEEMED BELOW-INVESTMENT
GRADE. THEY ALSO INVOLVE A GREATER RISK OF DEFAULT OR PRICE DECLINE THAN
INVESTMENT GRADE SECURITIES. HOWEVER, THEY HAVE A SIGNIFICANT SOCIAL RETURN BY
MAKING A TREMENDOUS DIFFERENCE IN OUR LOCAL COMMUNITIES. HIGH SOCIAL IMPACT
INVESTMENTS ARE VALUED UNDER THE DIRECTION AND CONTROL OF THE FUND'S BOARD.
THE FUND HAS RECEIVED AN EXEMPTIVE ORDER TO PERMIT IT TO INVEST THOSE ASSETS
ALLOCATED FOR INVESTMENT IN HIGH SOCIAL IMPACT INVESTMENTS THROUGH THE PURCHASE
OF COMMUNITY INVESTMENT NOTES FROM THE CALVERT SOCIAL INVESTMENT FOUNDATION. THE
CALVERT SOCIAL INVESTMENT FOUNDATION IS A NON-PROFIT ORGANIZATION, LEGALLY
DISTINCT FROM CALVERT GROUP, ORGANIZED AS A CHARITABLE AND EDUCATIONAL
FOUNDATION FOR THE PURPOSE OF INCREASING PUBLIC AWARENESS AND KNOWLEDGE OF THE
CONCEPT OF SOCIALLY RESPONSIBLE INVESTING. IT HAS INSTITUTED THE CALVERT
COMMUNITY INVESTMENTS PROGRAM TO RAISE ASSETS FROM INDIVIDUAL AND INSTITUTIONAL
INVESTORS AND THEN INVEST THESE ASSETS DIRECTLY IN NON-PROFIT OR NOT-FOR-PROFIT
COMMUNITY DEVELOPMENT ORGANIZATIONS AND COMMUNITY DEVELOPMENT BANKS THAT FOCUS
ON LOW INCOME HOUSING, ECONOMIC DEVELOPMENT AND BUSINESS DEVELOPMENT IN URBAN
AND RURAL COMMUNITIES.
INVESTMENTS IN HIGH SOCIAL IMPACT INVESTMENTS MAY HINDER THE FUND'S ABILITY TO
TRACK THE INDEX. FOR THIS REASON, THE FUND LIMITS THE AMOUNT OF SUCH INVESTMENTS
TO ONLY 1% OF FUND ASSETS.
SPECIAL EQUITIES
THE FUND HAS A SPECIAL EQUITIES INVESTMENT PROGRAM THAT ALLOWS THE FUND TO
PROMOTE ESPECIALLY PROMISING APPROACHES TO SOCIAL GOALS THROUGH PRIVATELY PLACED
INVESTMENTS. THE INVESTMENTS ARE GENERALLY VENTURE CAPITAL INVESTMENTS IN SMALL,
UNTRIED ENTERPRISES. THE SPECIAL EQUITIES COMMITTEE OF THE FUND'S BOARD
IDENTIFIES, EVALUATES, AND SELECTS THE SPECIAL EQUITIES INVESTMENTS. SPECIAL
EQUITIES INVOLVE A HIGH DEGREE OF RISK-- THEY ARE SUBJECT TO LIQUIDITY,
INFORMATION, AND IF A DEBT INVESTMENT, CREDIT RISK. SPECIAL EQUITIES ARE VALUED
UNDER THE DIRECTION AND CONTROL OF THE FUND'S BOARD. THE FUND MAY ENGAGE IN THIS
PROGRAM UPON REACHING $50 MILLION IN ASSETS. SPECIAL EQUITIES INVESTMENTS ARE
LIMITED TO ONLY 1% OF ASSETS.
THE FUND HAS ADDITIONAL INVESTMENT POLICIES AND RESTRICTIONS (FOR EXAMPLE,
REPURCHASE AGREEMENTS, BORROWING, PLEDGING, AND REVERSE REPURCHASE AGREEMENTS,
AND SECURITIES LENDING.) THESE POLICIES AND RESTRICTIONS ARE DISCUSSED IN THE
SAI.
TYPES OF INVESTMENT RISK
CORRELATION RISK
THIS OCCURS WHEN A FUND "HEDGES"- USES ONE INVESTMENT TO OFFSET THE FUND'S
POSITION IN ANOTHER. IF THE TWO INVESTMENTS DO NOT BEHAVE IN RELATION TO ONE
ANOTHER THE WAY FUND MANAGERS EXPECT THEM TO, THEN UNEXPECTED OR UNDESIRED
RESULTS MAY OCCUR. FOR EXAMPLE, A HEDGE MAY ELIMINATE OR REDUCE GAINS AS WELL AS
OFFSET LOSSES.
CREDIT RISK
THE RISK THAT THE ISSUER OF A SECURITY OR THE COUNTERPARTY TO AN INVESTMENT
CONTRACT MAY DEFAULT OR BECOME UNABLE TO PAY ITS OBLIGATIONS WHEN DUE.
CURRENCY RISK
CURRENCY RISK OCCURS WHEN A FUND BUYS, SELLS OR HOLDS A SECURITY DENOMINATED IN
FOREIGN CURRENCY. FOREIGN CURRENCIES "FLOAT" IN VALUE AGAINST THE US DOLLAR.
ADVERSE CHANGES IN FOREIGN CURRENCY VALUES CAN CAUSE INVESTMENT LOSSES WHEN A
FUND'S INVESTMENTS ARE CONVERTED TO US DOLLARS.
INFORMATION RISK
THE RISK THAT INFORMATION ABOUT A SECURITY OR ISSUER OR THE MARKET MIGHT NOT BE
AVAILABLE, COMPLETE, ACCURATE OR COMPARABLE.
INTEREST RATE RISK
THE RISK THAT CHANGES IN INTEREST RATES WILL ADVERSELY AFFECT THE VALUE OF AN
INVESTOR'S SECURITIES. WHEN INTEREST RATES RISE, THE VALUE OF FIXED-INCOME
SECURITIES WILL GENERALLY FALL. CONVERSELY, A DROP IN INTEREST RATES WILL
GENERALLY CAUSE AN INCREASE IN THE VALUE OF FIXED-INCOME SECURITIES. LONGER-TERM
SECURITIES AND ZERO COUPON/"STRIPPED" COUPON SECURITIES ("STRIPS") ARE
SUBJECT TO GREATER INTEREST RATE RISK.
LEVERAGE RISK
THE RISK THAT OCCURS IN SOME SECURITIES OR TECHNIQUES WHICH TEND TO MAGNIFY THE
EFFECT OF SMALL CHANGES IN AN INDEX OR A MARKET. THIS CAN RESULT IN A LOSS THAT
EXCEEDS THE AMOUNT ACTUALLY INVESTED.
<PAGE>
LIQUIDITY RISK
THE RISK THAT OCCURS WHEN INVESTMENTS CANNOT BE READILY SOLD. A FUND MAY HAVE TO
ACCEPT A LESS-THAN-DESIRABLE PRICE TO COMPLETE THE SALE OF AN ILLIQUID SECURITY
OR MAY NOT BE ABLE TO SELL IT AT ALL.
MARKET RISK
THE RISK THAT SECURITIES PRICES IN A MARKET, A SECTOR OR AN INDUSTRY WILL
FLUCTUATE, AND THAT SUCH MOVEMENTS MIGHT REDUCE AN INVESTMENT'S VALUE.
OPPORTUNITY RISK
THE RISK OF MISSING OUT ON AN INVESTMENT OPPORTUNITY BECAUSE THE ASSETS NEEDED
TO TAKE ADVANTAGE OF IT ARE COMMITTED TO LESS ADVANTAGEOUS INVESTMENTS OR
STRATEGIES.
POLITICAL RISK
THE RISK THAT MAY OCCUR WITH FOREIGN INVESTMENTS, AND MEANS THAT THE VALUE OF AN
INVESTMENT MAY BE ADVERSELY AFFECTED BY NATIONALIZATION, TAXATION, WAR,
GOVERNMENT INSTABILITY OR OTHER ECONOMIC OR POLITICAL ACTIONS OR FACTORS.
TRANSACTION RISK
THE RISK THAT A FUND MAY BE DELAYED OR UNABLE TO SETTLE A TRANSACTION OR THAT
COMMISSIONS AND SETTLEMENT EXPENSES MAY BE HIGHER THAN USUAL.
WHAT IS INDEXING?
AN INDEX IS AN UNMANAGED GROUP OF SECURITIES WHOSE OVERALL PERFORMANCE IS USED
AS A STANDARD TO MEASURE INVESTMENT PERFORMANCE. AN INDEX (OR "PASSIVELY
MANAGED") FUND TRIES TO MATCH, AS CLOSELY AS POSSIBLE, THE PERFORMANCE OF AN
ESTABLISHED TARGET INDEX.
INDEX FUNDS ARE NOT ACTIVELY MANAGED BY INVESTMENT ADVISORS WHO BUY AND SELL
SECURITIES BASED ON RESEARCH AND ANALYSIS IN AN ATTEMPT TO OUTPERFORM A
PARTICULAR BENCHMARK OR THE MARKET AS A WHOLE. RATHER, INDEX FUNDS SIMPLY
ATTEMPT TO MIRROR WHAT THE TARGET INDEX DOES, FOR BETTER OR FOR WORSE. THE
SOCIALLY RESPONSIBLE CRITERIA USED BY THE CALVERT SOCIAL INDEX MAY RESULT IN
ECONOMIC SECTOR WEIGHTINGS THAT ARE SIGNIFICANTLY DIFFERENT FROM THOSE OF THE
OVERALL MARKET.
TO TRACK ITS TARGET INDEX AS CLOSELY AS POSSIBLE, THE FUND ATTEMPTS TO REMAIN
FULLY INVESTED IN STOCKS. TO HELP STAY FULLY INVESTED, AND TO REDUCE TRANSACTION
COSTS, THE FUND MAY INVEST, TO A LIMITED EXTENT IN STOCK FUTURES AND OPTIONS
CONTRACTS, OR OTHER REGISTERED INVESTMENT COMPANIES. THE FUND MAY PURCHASE U.S.
TREASURY SECURITIES IN CONNECTION WITH ITS HEDGING ACTIVITIES.
ALTHOUGH INDEX FUNDS, BY THEIR NATURE TEND TO BE TAX-EFFICIENT INVESTMENT
VEHICLES, THE FUND GENERALLY IS MANAGED WITHOUT REGARD TO TAX RAMIFICATIONS.
SHAREHOLDER ADVOCACY AND SOCIAL RESPONSIBILITY
AS THE FUND'S ADVISOR, CALVERT TAKES A PROACTIVE ROLE TO MAKE A TANGIBLE
POSITIVE CONTRIBUTION TO OUR SOCIETY AND THAT OF FUTURE GENERATIONS. WE SEEK TO
POSITIVELY INFLUENCE CORPORATE BEHAVIOR THROUGH OUR ROLE AS SHAREHOLDERS BY
PUSHING COMPANIES TOWARD HIGHER STANDARDS OF SOCIAL AND ENVIRONMENTAL
RESPONSIBILITY. OUR RELATIONSHIP WITH COMPANY MANAGEMENT CONTINUES ONCE WE
INVEST IN A COMPANY. OUR ACTIVITIES MAY INCLUDE BUT ARE NOT LIMITED TO:
DIALOGUE WITH COMPANIES
WE REGULARLY INITIATE DIALOGUE WITH MANAGEMENT AS PART OF OUR SOCIAL RESEARCH
PROCESS. AFTER WE'VE BECOME A SHAREHOLDER, WE OFTEN CONTINUE OUR DIALOGUE WITH
MANAGEMENT THROUGH PHONE CALLS, LETTERS AND IN-PERSON MEETINGS. THROUGH OUR
INTERACTION, WE LEARN ABOUT MANAGEMENT'S SUCCESSES AND CHALLENGES AND PRESS FOR
IMPROVEMENT ON ISSUES OF CONCERN.
PROXY VOTING
AS A SHAREHOLDER IN OUR VARIOUS PORTFOLIO COMPANIES, WE ARE GUARANTEED AN
OPPORTUNITY EACH YEAR TO EXPRESS OUR VIEWS ON ISSUES OF CORPORATE GOVERNANCE AND
SOCIAL RESPONSIBILITY AT ANNUAL STOCKHOLDER MEETINGS. WE TAKE OUR VOTING
RESPONSIBILITY SERIOUSLY AND VOTE ALL PROXIES CONSISTENT WITH THE FINANCIAL AND
SOCIAL OBJECTIVES OF OUR FUND.
SHAREHOLDER RESOLUTIONS
CALVERT PROPOSES RESOLUTIONS ON A VARIETY OF SOCIAL ISSUES. WE FILE SHAREHOLDER
RESOLUTIONS WHEN OUR DIALOGUE WITH CORPORATE MANAGEMENT PROVES UNSUCCESSFUL TO
ENCOURAGE A COMPANY TO TAKE ACTION. IN MOST CASES, OUR EFFORTS HAVE LED TO
NEGOTIATED SETTLEMENTS WITH POSITIVE RESULTS FOR SHAREHOLDERS AND COMPANIES
ALIKE. FOR EXAMPLE, ONE OF OUR SHAREHOLDER RESOLUTIONS RESULTED IN THE COMPANY'S
FIRST-EVER DISCLOSURE OF ITS EQUAL EMPLOYMENT POLICIES, PROGRAMS AND WORKFORCE
DEMOGRAPHICS.
ABOUT THE ADVISOR
CALVERT ASSET MANAGEMENT COMPANY, INC.(4550 MONTGOMERY AVENUE, SUITE 1000N,
BETHESDA, MD 20814) ("CAMCO") IS THE FUNDS' INVESTMENT ADVISOR. CAMCO PROVIDES
THE FUNDS WITH INVESTMENT SUPERVISION AND MANAGEMENT AND OFFICE SPACE; FURNISHES
EXECUTIVE AND OTHER PERSONNEL TO THE FUNDS, AND PAYS THE SALARIES AND FEES OF
ALL TRUSTEES/DIRECTORS WHO ARE AFFILIATED PERSONS OF THE ADVISOR. IT HAS BEEN
MANAGING MUTUAL FUNDS SINCE 1976. CALVERT IS THE INVESTMENT ADVISOR FOR OVER 25
MUTUAL FUND PORTFOLIOS, INCLUDING THE FIRST AND LARGEST FAMILY OF SOCIALLY
SCREENED FUNDS. AS OF DECEMBER 31, 1999, CALVERT HAD OVER $6 BILLION IN ASSETS
UNDER MANAGEMENT.
<PAGE>
SUBADVISOR
WORLD ASSET MANAGEMENT, LLC (255 E. BROWN ST., BIRMINGHAM, MI 48009) IS THE
FUND'S SUBADVISOR. IT HAS BEEN IN THE INDEX BUSINESS SINCE THE MID 1970S AND
SPECIALIZES IN PASSIVE PORTFOLIO MANAGEMENT TECHNIQUES. IT HAS MANAGED THE FUND
SINCE INCEPTION.
THE FUND HAS OBTAINED AN EXEMPTIVE ORDER FROM THE SECURITIES AND EXCHANGE
COMMISSION TO PERMIT THE FUND, PURSUANT TO APPROVAL BY THE BOARD OF DIRECTORS,
TO ENTER INTO AND MATERIALLY AMEND CONTRACTS WITH THE FUND'S SUBADVISORS WITHOUT
SHAREHOLDER APPROVAL. SEE "INVESTMENT ADVISOR AND SUBADVISOR" IN THE SAI FOR
FURTHER DETAILS.
ADVISORY FEES
THE FUND'S ADVISORY AGREEMENT PROVIDES FOR THE FUND TO PAY CAMCO A FEE OF 0.225%
OF THE FUND'S AVERAGE DAILY NET ASSETS.
HOW TO OPEN AN ACCOUNT
COMPLETE AND SIGN AN APPLICATION FOR EACH NEW ACCOUNT. BE SURE TO SPECIFY CLASS
I. ALL PURCHASES MUST BE MADE BY BANKWIRE IN U.S. DOLLARS. FOR MORE
INFORMATION AND WIRE INSTRUCTIONS, CALL CALVERT GROUP AT 800-327-2109.
MINIMUM TO OPEN AN ACCOUNT $1,000,000
IMPORTANT - HOW SHARES ARE PRICED
THE PRICE OF SHARES IS BASED ON EACH FUND'S NET ASSET VALUE ("NAV"). NAV IS
COMPUTED BY ADDING THE VALUE OF A FUND'S HOLDINGS PLUS OTHER ASSETS, SUBTRACTING
LIABILITIES, AND THEN DIVIDING THE RESULT BY THE NUMBER OF SHARES OUTSTANDING.
IF A FUND HAS MORE THAN ONE CLASS OF SHARES, THE NAV OF EACH CLASS WILL BE
DIFFERENT, DEPENDING ON THE NUMBER OF SHARES OUTSTANDING FOR EACH CLASS.
PORTFOLIO SECURITIES AND OTHER ASSETS ARE VALUED BASED ON MARKET QUOTATIONS,
EXCEPT THAT SECURITIES MATURING WITHIN 60 DAYS ARE VALUED AT AMORTIZED COST. IF
MARKET QUOTATIONS ARE NOT READILY AVAILABLE, SECURITIES ARE VALUED BY A METHOD
THAT THE FUND'S BOARD OF TRUSTEES/DIRECTORS BELIEVES ACCURATELY REFLECTS FAIR
VALUE.
THE NAV IS CALCULATED AS OF THE CLOSE OF EACH BUSINESS DAY, WHICH COINCIDES WITH
THE CLOSING OF THE REGULAR SESSION OF THE NEW YORK STOCK EXCHANGE ("NYSE")
(NORMALLY 4 P.M. ET). EACH FUND IS OPEN FOR BUSINESS EACH DAY THE NYSE IS OPEN.
PLEASE NOTE THAT THERE ARE SOME FEDERAL HOLIDAYS, HOWEVER, SUCH AS COLUMBUS DAY
AND VETERAN'S DAY, WHEN THE NYSE IS OPEN AND THE FUND IS OPEN BUT PURCHASES
CANNOT BE MADE DUE TO THE CLOSURE OF THE BANKING SYSTEM.
WHEN YOUR ACCOUNT WILL BE CREDITED
YOUR PURCHASE WILL BE PROCESSED AT THE NEXT NAV CALCULATED AFTER YOUR ORDER IS
RECEIVED IN GOOD ORDER. THE FUND RESERVES THE RIGHT TO SUSPEND THE OFFERING OF
SHARES FOR A PERIOD OF TIME OR TO REJECT ANY SPECIFIC PURCHASE ORDER. ALL
PURCHASES WILL BE CONFIRMED AND CREDITED TO YOUR ACCOUNT IN FULL AND FRACTIONAL
SHARES (ROUNDED TO THE NEAREST 1/1000TH OF A SHARE).
OTHER CALVERT GROUP FEATURES
FOR 24 HOUR PERFORMANCE AND ACCOUNT INFORMATION
VISIT WWW.CALVERT.COM
TELEPHONE TRANSACTIONS
YOU MAY PURCHASE, REDEEM, OR EXCHANGE SHARES AND WIRE FUNDS BY TELEPHONE IF YOU
HAVE PRE-AUTHORIZED SERVICE INSTRUCTIONS AND ESTABLISHED BANK INSTRUCTIONS ON
YOUR ACCOUNT, WHEN OPENED OR AT A LATER DATE BY A SIGNATURE-GUARANTEED LETTER.
YOU RECEIVE TELEPHONE PRIVILEGES AUTOMATICALLY WHEN YOU OPEN YOUR ACCOUNT UNLESS
YOU INSTRUCT US OTHERWISE IN WRITING.
WHILE TELEPHONE REDEMPTION IS EASY AND CONVENIENT, THIS ACCOUNT FEATURE INVOLVES
A RISK OF LOSS FROM UNAUTHORIZED OR FRAUDULENT TRANSACTIONS. CALVERT WILL TAKE
REASONABLE PRECAUTIONS TO PROTECT YOUR ACCOUNT FROM FRAUD. YOU SHOULD DO THE
SAME BY KEEPING YOUR ACCOUNT INFORMATION PRIVATE AND IMMEDIATELY REVIEWING ANY
CONFIRMATIONS OR ACCOUNT STATEMENTS THAT WE SEND TO YOU. MAKE SURE TO CONTACT
CALVERT IMMEDIATELY ABOUT ANY TRANSACTION YOU BELIEVE TO BE UNAUTHORIZED.
WE RESERVE THE RIGHT TO REFUSE A TELEPHONE REDEMPTION IF THE CALLER IS UNABLE TO
PROVIDE:
- THE ACCOUNT NUMBER.
- THE NAME AND ADDRESS EXACTLY AS REGISTERED ON THE ACCOUNT.
- THE PRIMARY SOCIAL SECURITY OR EMPLOYER IDENTIFICATION NUMBER AS REGISTERED ON
THE ACCOUNT.
PLEASE NOTE THAT CALVERT WILL NOT BE RESPONSIBLE FOR ANY ACCOUNT LOSSES DUE TO
TELEPHONE FRAUD, SO LONG AS WE HAVE TAKEN REASONABLE STEPS TO VERIFY THE
CALLER'S IDENTITY. IF YOU WISH TO REMOVE THE TELEPHONE REDEMPTION FEATURE FROM
YOUR ACCOUNT, PLEASE NOTIFY US IN WRITING.
EXCHANGES
CALVERT GROUP OFFERS A WIDE VARIETY OF INVESTMENT OPTIONS THAT INCLUDES COMMON
STOCK FUNDS, TAX-EXEMPT AND CORPORATE BOND FUNDS, AND MONEY MARKET FUNDS (CALL
YOUR BROKER OR CALVERT REPRESENTATIVE FOR MORE INFORMATION). WE MAKE IT EASY FOR
YOU TO PURCHASE SHARES IN OTHER CALVERT FUNDS IF YOUR INVESTMENT GOALS CHANGE.
COMPLETE AND SIGN AN ACCOUNT APPLICATION, TAKING CARE TO REGISTER YOUR NEW
ACCOUNT IN THE SAME NAME AND TAXPAYER IDENTIFICATION NUMBER AS YOUR EXISTING
CALVERT ACCOUNT(S). EXCHANGE INSTRUCTIONS MAY THEN BE GIVEN BY TELEPHONE IF
TELEPHONE REDEMPTIONS HAVE BEEN AUTHORIZED AND THE SHARES ARE NOT IN CERTIFICATE
FORM.
BEFORE YOU MAKE AN EXCHANGE, PLEASE NOTE THE FOLLOWING:
EACH EXCHANGE REPRESENTS THE SALE OF SHARES OF ONE FUND AND THE PURCHASE OF
SHARES OF ANOTHER. THEREFORE, YOU COULD REALIZE A TAXABLE GAIN OR LOSS.
SHARES MAY ONLY BE EXCHANGED FOR CLASS I SHARES OF ANOTHER CALVERT FUND.
<PAGE>
BANK HOLIDAYS: ON ANY DAY CALVERT IS OPEN BUT THE FUND'S CUSTODIAN BANK IS
CLOSED (E.G., COLUMBUS DAY AND VETERAN'S DAY) EXCHANGE REQUESTS INTO OR OUT OF A
MONEY MARKET FUND WILL BE PRICED AT THE NEXT-DETERMINED NAV, BUT WILL NOT
RECEIVE ANY DIVIDEND IN THE MONEY MARKET FUND UNTIL THE NEXT DAY THE FUND'S
CUSTODIAN BANK IS OPEN.
THE FUND AND THE DISTRIBUTOR RESERVE THE RIGHT AT ANY TIME TO REJECT OR CANCEL
ANY PART OF ANY PURCHASE OR EXCHANGE ORDER; MODIFY ANY TERMS OR CONDITIONS OF
PURCHASE OF SHARES OF ANY FUND; OR WITHDRAW ALL OR ANY PART OF THE OFFERING MADE
BY THIS PROSPECTUS. TO PROTECT THE INTERESTS OF INVESTORS, THE FUND AND THE
DISTRIBUTOR MAY REJECT ANY ORDER CONSIDERED MARKET-TIMING ACTIVITY.
THE FUND RESERVES THE RIGHT TO TERMINATE OR MODIFY THE EXCHANGE PRIVILEGE WITH
60 DAYS' WRITTEN NOTICE.
ELECTRONIC DELIVERY OF PROSPECTUSES AND
SHAREHOLDER REPORTS
YOU MAY REQUEST TO RECEIVE ELECTRONIC DELIVERY OF PROSPECTUSES AND ANNUAL AND
SEMI ANNUAL REPORTS.
COMBINED GENERAL MAILINGS (HOUSEHOLDING)
MULTIPLE ACCOUNTS WITH THE SAME SOCIAL SECURITY NUMBER WILL RECEIVE ONE MAILING
PER HOUSEHOLD OF INFORMATION SUCH AS PROSPECTUSES AND SEMI-ANNUAL AND ANNUAL
REPORTS. YOU MAY REQUEST FURTHER GROUPING OF ACCOUNTS TO RECEIVE FEWER MAILINGS.
SEPARATE STATEMENTS WILL BE GENERATED FOR EACH SEPARATE ACCOUNT AND WILL BE
MAILED IN ONE ENVELOPE FOR EACH COMBINATION ABOVE.
SPECIAL SERVICES AND CHARGES
THE FUND PAYS FOR SHAREHOLDER SERVICES BUT NOT FOR SPECIAL SERVICES THAT ARE
REQUIRED BY A FEW SHAREHOLDERS, SUCH AS A REQUEST FOR A HISTORICAL TRANSCRIPT OF
AN ACCOUNT. YOU MAY BE REQUIRED TO PAY A FEE FOR THESE SPECIAL SERVICES.
MINIMUM ACCOUNT BALANCE
PLEASE MAINTAIN A BALANCE IN EACH OF YOUR FUND ACCOUNTS OF AT LEAST $1,000,000
PER FUND. IF DUE TO REDEMPTIONS, THE ACCOUNT FALLS BELOW THE MINIMUM, YOUR
ACCOUNT MAY BE CLOSED AND THE PROCEEDS MAILED TO THE ADDRESS OF RECORD. YOU
WILL BE GIVEN A NOTICE THAT YOUR ACCOUNT IS BELOW THE MINIMUM AND WILL BE
CLOSED, OR MOVED TO CLASS A (AT NAV) AFTER 30 DAYS IF THE BALANCE IS NOT BROUGHT
UP TO THE REQUIRED MINIMUM AMOUNT.
DIVIDENDS, CAPITAL GAINS AND TAXES
THE FUND PAYS DIVIDENDS FROM ITS NET INVESTMENT INCOME ANNUALLY. NET INVESTMENT
INCOME CONSISTS OF INTEREST INCOME, NET SHORT-TERM CAPITAL GAINS, IF ANY, AND
DIVIDENDS DECLARED AND ON INVESTMENTS, LESS EXPENSES. DISTRIBUTIONS OF NET
SHORT-TERM CAPITAL GAINS (TREATED AS DIVIDENDS FOR TAX PURPOSES) AND NET
LONG-TERM CAPITAL GAINS, IF ANY, ARE NORMALLY PAID ONCE A YEAR; HOWEVER, THE
FUND DOES NOT ANTICIPATE MAKING ANY SUCH DISTRIBUTIONS UNLESS AVAILABLE CAPITAL
LOSS CARRYOVERS HAVE BEEN USED OR HAVE EXPIRED. DIVIDEND AND DISTRIBUTION
PAYMENTS WILL VARY BETWEEN CLASSES.
DIVIDEND PAYMENT OPTIONS
DIVIDENDS AND ANY DISTRIBUTIONS ARE AUTOMATICALLY REINVESTED IN THE SAME FUND AT
NAV, UNLESS YOU ELECT TO HAVE AMOUNTS OF $10 OR MORE PAID TO YOU BY WIRE TO A
PREDESIGNATED BANK ACCOUNT. DIVIDENDS AND DISTRIBUTIONS FROM ANY CALVERT GROUP
FUND MAY BE AUTOMATICALLY INVESTED IN AN IDENTICALLY REGISTERED ACCOUNT IN THE
CAME SHARE CLASS OF ANY OTHER CALVERT GROUP FUND AT NAV. IF REINVESTED IN THE
SAME ACCOUNT, NEW SHARES WILL BE PURCHASED AT NAV ON THE REINVESTMENT DATE,
WHICH IS GENERALLY 1 TO 3 DAYS PRIOR TO THE PAYMENT DATE. YOU MUST NOTIFY THE
FUND IN WRITING TO CHANGE YOUR PAYMENT OPTIONS.
BUYING A DIVIDEND
AT THE TIME OF PURCHASE, THE SHARE PRICE OF EACH CLASS MAY REFLECT UNDISTRIBUTED
INCOME, CAPITAL GAINS OR UNREALIZED APPRECIATION OF SECURITIES. ANY INCOME OR
CAPITAL GAINS FROM THESE AMOUNTS WHICH ARE LATER DISTRIBUTED TO YOU ARE FULLY
TAXABLE. ON THE RECORD DATE FOR A DISTRIBUTION, SHARE VALUE IS REDUCED BY THE
AMOUNT OF THE DISTRIBUTION. IF YOU BUY SHARES JUST BEFORE THE RECORD DATE
("BUYING A DIVIDEND") YOU WILL PAY THE FULL PRICE FOR THE SHARES AND THEN
RECEIVE A PORTION OF THE PRICE BACK AS A TAXABLE DISTRIBUTION.
FEDERAL TAXES
IN JANUARY, THE FUND WILL MAIL YOU FORM 1099-DIV INDICATING THE FEDERAL TAX
STATUS OF DIVIDENDS AND ANY CAPITAL GAIN DISTRIBUTIONS PAID TO YOU DURING THE
PAST YEAR. GENERALLY, DIVIDENDS AND DISTRIBUTIONS ARE TAXABLE IN THE YEAR THEY
ARE PAID. HOWEVER, ANY DIVIDENDS AND DISTRIBUTIONS PAID IN JANUARY BUT DECLARED
DURING THE PRIOR THREE MONTHS ARE TAXABLE IN THE YEAR DECLARED. DIVIDENDS AND
DISTRIBUTIONS ARE TAXABLE TO YOU REGARDLESS OF WHETHER THEY ARE TAKEN IN CASH OR
REINVESTED. DIVIDENDS, INCLUDING SHORT-TERM CAPITAL GAINS, ARE TAXABLE AS
ORDINARY INCOME. DISTRIBUTIONS FROM LONG-TERM CAPITAL GAINS ARE TAXABLE AS
LONG-TERM CAPITAL GAINS, REGARDLESS OF HOW LONG YOU HAVE OWNED SHARES.
YOU MAY REALIZE A CAPITAL GAIN OR LOSS WHEN YOU SELL OR EXCHANGE SHARES. THIS
CAPITAL GAIN OR LOSS WILL BE SHORT- OR LONG-TERM, DEPENDING ON HOW LONG YOU HAVE
OWNED THE SHARES WHICH WERE SOLD. IN JANUARY, THE FUND WILL MAIL YOU FORM 1099-B
INDICATING THE TOTAL AMOUNT OF ALL SALES, INCLUDING EXCHANGES. YOU SHOULD KEEP
YOUR ANNUAL YEAR-END ACCOUNT STATEMENTS TO DETERMINE THE COST (BASIS) OF THE
SHARES TO REPORT ON YOUR TAX RETURNS.
OTHER TAX INFORMATION
IN ADDITION TO FEDERAL TAXES, YOU MAY BE SUBJECT TO STATE OR LOCAL TAXES ON YOUR
INVESTMENT, DEPENDING ON THE LAWS IN YOUR AREA. YOU WILL BE NOTIFIED TO THE
EXTENT, IF ANY, THAT DIVIDENDS REFLECT INTEREST RECEIVED FROM US GOVERNMENT
SECURITIES. SUCH DIVIDENDS MAY BE EXEMPT FROM CERTAIN STATE INCOME TAXES.
<PAGE>
TAXPAYER IDENTIFICATION NUMBER
IF WE DO NOT HAVE YOUR CORRECT SOCIAL SECURITY OR TAXPAYER IDENTIFICATION NUMBER
("TIN") AND A SIGNED CERTIFIED APPLICATION OR FORM W-9, FEDERAL LAW REQUIRES US
TO WITHHOLD 31% OF YOUR REPORTABLE DIVIDENDS, AND POSSIBLY 31% OF CERTAIN
REDEMPTIONS. IN ADDITION, YOU MAY BE SUBJECT TO A FINE BY THE INTERNAL REVENUE
SERVICE. YOU WILL ALSO BE PROHIBITED FROM OPENING ANOTHER ACCOUNT BY EXCHANGE.
CALVERT GROUP RESERVES THE RIGHT TO REJECT ANY NEW ACCOUNT OR ANY PURCHASE ORDER
FOR FAILURE TO SUPPLY A CERTIFIED TIN.
HOW TO SELL SHARES
YOU MAY REDEEM ALL OR A PORTION OF YOUR SHARES ON ANY DAY YOUR FUND IS OPEN FOR
BUSINESS. YOUR SHARES WILL BE REDEEMED AT THE NEXT NAV CALCULATED AFTER YOUR
REDEMPTION REQUEST IS RECEIVED BY THE TRANSFER AGENT IN GOOD ORDER (SEE BELOW).
THE PROCEEDS WILL NORMALLY BE SENT TO YOU ON THE NEXT BUSINESS DAY, BUT IF
MAKING IMMEDIATE PAYMENT COULD ADVERSELY AFFECT THE FUND, IT MAY TAKE UP TO
SEVEN (7) DAYS TO MAKE PAYMENT. THE FUNDS HAVE THE RIGHT TO REDEEM SHARES IN
ASSETS OTHER THAN CASH FOR REDEMPTION AMOUNTS EXCEEDING, IN ANY 90-DAY PERIOD,
$250,000 OR 1% OF THE NET ASSET VALUE OF THE FUND, WHICHEVER IS LESS. WHEN THE
NYSE IS CLOSED (OR WHEN TRADING IS RESTRICTED) FOR ANY REASON OTHER THAN ITS
CUSTOMARY WEEKEND OR HOLIDAY CLOSINGS, OR UNDER ANY EMERGENCY CIRCUMSTANCES AS
DETERMINED BY THE SECURITIES AND EXCHANGE COMMISSION, REDEMPTIONS MAY BE
SUSPENDED OR PAYMENT DATES POSTPONED. PLEASE NOTE THAT THERE ARE SOME FEDERAL
HOLIDAYS, HOWEVER, SUCH AS COLUMBUS DAY AND VETERANS' DAY, WHEN THE NYSE IS OPEN
AND THE FUND IS OPEN BUT REDEMPTIONS CANNOT BE MAILED OR WIRED BECAUSE THE POST
OFFICES AND BANKS ARE CLOSED.
REQUEST IN "GOOD ORDER"
ALL REDEMPTION REQUESTS MUST BE RECEIVED BY THE TRANSFER AGENT IN "GOOD ORDER."
THIS MEANS THAT YOUR REQUEST MUST INCLUDE:
- THE FUND NAME AND ACCOUNT NUMBER
- THE AMOUNT OF THE TRANSACTION (IN DOLLARS OR SHARES).
- SIGNATURES OF ALL OWNERS EXACTLY AS REGISTERED ON THE ACCOUNT (FOR MAIL
REQUESTS).
- SIGNATURE GUARANTEES (IF REQUIRED).*
- ANY SUPPORTING LEGAL DOCUMENTATION THAT MAY BE REQUIRED.
- ANY OUTSTANDING CERTIFICATES REPRESENTING SHARES TO BE REDEEMED.
*FOR INSTANCE, A SIGNATURE GUARANTEE MUST BE PROVIDED BY ALL REGISTERED ACCOUNT
SHAREHOLDERS WHEN REDEMPTION PROCEEDS ARE SENT TO A DIFFERENT PERSON OR ADDRESS.
A SIGNATURE GUARANTEE CAN BE OBTAINED FROM MOST COMMERCIAL AND SAVINGS BANKS,
CREDIT UNIONS, TRUST COMPANIES, OR MEMBER FIRMS OF A U.S. STOCK EXCHANGE.
TRANSACTIONS ARE PROCESSED AT THE NEXT DETERMINED SHARE PRICE AFTER THE TRANSFER
AGENT HAS RECEIVED ALL REQUIRED INFORMATION.
FOLLOW THESE SUGGESTIONS TO ENSURE TIMELY PROCESSING OF YOUR REDEMPTION REQUEST:
BY TELEPHONE - CALL 800-368-2745
YOU MAY REDEEM SHARES FROM YOUR ACCOUNT BY TELEPHONE AND HAVE YOUR MONEY WIRED
TO AN ADDRESS OR BANK YOU HAVE PREVIOUSLY AUTHORIZED. SEE "OTHER CALVERT GROUP
FEATURES - TELEPHONE TRANSACTIONS." CLASS I REDEMPTIONS MUST BE MADE BY WIRE. IF
YOU WANT THE MONEY TO BE WIRED TO A BANK NOT PREVIOUSLY AUTHORIZED, THEN A
VOIDED BANK CHECK MUST BE PROVIDED. TO ADD INSTRUCTIONS TO WIRE TO A
DESTINATION NOT PREVIOUSLY ESTABLISHED, OR IF YOU WOULD LIKE FUNDS SENT TO A
DIFFERENT ADDRESS OR ANOTHER PERSON, YOUR LETTER MUST BE SIGNATURE GUARANTEED.
<PAGE>
TO OPEN AN INSTITUTIONAL (CLASS I) ACCOUNT:
800-327-2109
PERFORMANCE AND PRICES:
WWW.CALVERT.COM
SERVICE FOR EXISTING ACCOUNTS:
SHAREHOLDERS 800-327-2109
TDD FOR HEARING-IMPAIRED:
800-541-1524
CALVERT OFFICE:
4550 MONTGOMERY AVENUE
SUITE 1000N
BETHESDA, MD 20814
REGISTERED, CERTIFIED OR
OVERNIGHT MAIL:
CALVERT GROUP
C/O NFDS
330 WEST 9TH STREET
KANSAS CITY, MO 64105
CALVERT GROUP WEB-SITE
WWW.CALVERT.COM
PRINCIPAL UNDERWRITER
CALVERT DISTRIBUTORS, INC.
4550 MONTGOMERY AVENUE
SUITE 1000N
BETHESDA, MD 20814
<PAGE>
FOR INVESTORS WHO WANT MORE INFORMATION ABOUT THE FUND, THE FOLLOWING DOCUMENTS
ARE AVAILABLE FREE UPON REQUEST:
ANNUAL/SEMI-ANNUAL REPORTS: ADDITIONAL INFORMATION ABOUT THE FUND'S INVESTMENTS
IS AVAILABLE IN THE FUND'S ANNUAL AND SEMI-ANNUAL REPORTS TO SHAREHOLDERS. IN
THE FUND'S ANNUAL REPORT, YOU WILL FIND A DISCUSSION OF THE MARKET CONDITIONS
AND INVESTMENT STRATEGIES THAT SIGNIFICANTLY AFFECTED THE FUND'S PERFORMANCE
DURING ITS LAST FISCAL YEAR.
STATEMENT OF ADDITIONAL INFORMATION (SAI): THE SAI FOR THE FUND PROVIDES MORE
DETAILED INFORMATION ABOUT THE FUND AND IS INCORPORATED INTO THIS PROSPECTUS BY
REFERENCE.
YOU CAN GET FREE COPIES OF REPORTS AND SAIS, REQUEST OTHER INFORMATION AND
DISCUSS YOUR QUESTIONS ABOUT THE FUNDS BY CONTACTING YOUR FINANCIAL
PROFESSIONAL, OR THE FUND AT:
CALVERT GROUP
4550 MONTGOMERY AVE, SUITE 1000N
BETHESDA, MD 20814
TELEPHONE: 1-800-327-2109
CALVERT GROUP WEB-SITE
WWW.CALVERT.COM
YOU CAN REVIEW THE FUND'S REPORTS AND SAIS AT THE PUBLIC REFERENCE ROOM OF THE
SECURITIES AND EXCHANGE COMMISSION.
YOU CAN GET TEXT-ONLY COPIES:
FOR A FEE, BY WRITING TO OR CALLING THE PUBLIC REFERENCE SECTION OF THE
COMMISSION, WASHINGTON, D.C. 20549-0102. TELEPHONE: 202-942-8090.
FREE FROM THE COMMISSION'S INTERNET WEBSITE AT
WWW.SEC.GOV.
INVESTMENT COMPANY ACT FILE:
NO.811- 09877 (CALVERT SOCIAL INDEX SERIES, INC.)
<PAGE>
CALVERT SOCIAL INDEX SERIES, INC.
CALVERT SOCIAL INDEX FUND
4550 MONTGOMERY AVENUE, BETHESDA, MARYLAND 20814
STATEMENT OF ADDITIONAL INFORMATION
_____________, 2000
NEW ACCOUNT (800) 368-2748 SHAREHOLDER
INFORMATION: (301) 951-4820 SERVICES: (800) 368-2745
BROKER (800) 368-2746 TDD FOR THE HEARING-
SERVICES: (301) 951-4850 IMPAIRED: (800) 541-1524
THIS SAI IS NOT A PROSPECTUS. INVESTORS SHOULD READ THE SAI IN CONJUNCTION
WITH THE FUND'S PROSPECTUS DATED ________, 2000. THE PROSPECTUS MAY BE OBTAINED
FREE OF CHARGE BY WRITING THE FUND AT THE ABOVE ADDRESS OR CALLING THE FUND, OR
BY VISITING OUR WEBSITE AT WWW.CALVERT.COM.
TABLE OF CONTENTS
INVESTMENT POLICIES AND RISKS 2
INVESTMENT RESTRICTIONS 5
DIVIDENDS, DISTRIBUTIONS AND TAXES 6
NET ASSET VALUE 6
CALCULATION OF TOTAL RETURN 7
PURCHASE AND REDEMPTION OF SHARES 7
ADVERTISING 7
DIRECTORS AND OFFICERS 8
INVESTMENT ADVISOR AND SUBADVISOR 10
ADMINISTRATIVE SERVICES AGENT 11
METHOD OF DISTRIBUTION 11
TRANSFER AND SHAREHOLDER SERVICING AGENTS 12
PORTFOLIO TRANSACTIONS 12
PERSONAL SECURITIES TRANSACTIONS 13
INDEPENDENT ACCOUNTANT AND CUSTODIANS 13
FINANCIAL STATEMENTS 13
GENERAL INFORMATION 13
APPENDIX 14
<PAGE>
INVESTMENT POLICIES AND RISKS
-----------------------------
FOREIGN SECURITIES
INVESTMENTS IN FOREIGN SECURITIES MAY PRESENT RISKS NOT TYPICALLY INVOLVED
IN DOMESTIC INVESTMENTS. THE FUND MAY PURCHASE FOREIGN SECURITIES ONLY TO THE
EXTENT THEY MAY BE IN THE CALVERT SOCIAL INDEX. THE INDEX WILL NOT HAVE ANY
FOREIGN STOCKS IN IT, UNLESS THEY ARE LISTED ONLY ON A U.S. EXCHANGE. THUS,
THERE WILL BE NO FOREIGN CUSTODY, OR CURRENCY INVOLVED. HOWEVER, BECAUSE THE
ISSUER IS LOCATED OUTSIDE THE U.S., SUCH SECURITIES WILL STILL BE SUBJECT TO
POLITICAL AND ECONOMIC RISKS OF THE COUNTRY WHERE THE ISSUERS ARE LOCATED.
TEMPORARY DEFENSIVE POSITIONS
FOR TEMPORARY DEFENSIVE PURPOSES, THE FUND MAY INVEST IN CASH OR CASH
EQUIVALENTS. CASH EQUIVALENTS INCLUDE INSTRUMENTS SUCH AS, BUT NOT LIMITED TO,
U.S. GOVERNMENT AND AGENCY OBLIGATIONS, CERTIFICATES OF DEPOSIT, BANKER'S
ACCEPTANCES, TIME DEPOSITS, COMMERCIAL PAPER, SHORT-TERM CORPORATE DEBT
SECURITIES, AND REPURCHASE AGREEMENTS. THE FUND MAY INVEST IN MONEY MARKET
INSTRUMENTS OF BANKS, WHETHER FOREIGN OR DOMESTIC, INCLUDING OBLIGATIONS OF US
BRANCHES OF FOREIGN BANKS ("YANKEE" INSTRUMENTS) AND OBLIGATIONS OF FOREIGN
BRANCHES OF US BANKS ("EURODOLLAR" INSTRUMENTS). ALL SUCH INSTRUMENTS MUST BE
HIGH-QUALITY, US DOLLAR-DENOMINATED OBLIGATIONS. ALTHOUGH NOT SUBJECT TO FOREIGN
CURRENCY RISK SINCE THEY ARE US DOLLAR-DENOMINATED, INVESTMENTS IN FOREIGN MONEY
MARKET INSTRUMENTS MAY INVOLVE RISKS THAT ARE DIFFERENT THAN INVESTMENTS IN
SECURITIES OF US ISSUERS. SEE "FOREIGN SECURITIES" ABOVE. THE FUND'S
INVESTMENTS IN TEMPORARY DEFENSIVE POSITIONS ARE GENERALLY NOT FDIC INSURED,
EVEN THOUGH A BANK MAY BE THE ISSUER.
TRACKING THE INDEX
THE PROCESS USED BY THE FUND TO ATTEMPT TO TRACK THE INDEX RELIES ON
ASSESSING THE DIFFERENCE BETWEEN THE FUND'S EXPOSURE TO FACTORS WHICH INFLUENCE
RETURNS AND THE INDEX'S EXPOSURE TO THOSE SAME FACTORS. THE COMBINED VARIABILITY
OF THESE FACTORS AND THE CORRELATION BETWEEN FACTORS ARE USED TO ESTIMATE THE
RISK IN THE FUND. THE EXTENT TO WHICH THE TOTAL RISK CHARACTERISTICS OF THE FUND
VARY FROM THAT OF THE INDEX IS ACTIVE RISK OR TRACKING ERROR.
THE FUND'S ABILITY TO TRACK THE INDEX WILL BE MONITORED BY ANALYZING RETURNS TO
ENSURE THAT THE RETURNS ARE REASONABLY CONSISTENT WITH INDEX RETURNS. BY
REGRESSING FUND RETURNS AGAINST INDEX RETURNS, THE ADVISOR CAN CALCULATE THE
GOODNESS OF FIT, AS MEASURED BY THE COEFFICIENT OF DETERMINATION OR R -SQUARED.
VALUES IN EXCESS OF 90% INDICATE A VERY HIGH DEGREE OF CORRELATION BETWEEN THE
FUND AND THE INDEX. THE FUND WILL ALSO BE MONITORED TO ENSURE THOSE GENERAL
CHARACTERISTICS, SUCH AS SECTOR EXPOSURES, CAPITALIZATION AND VALUATION
CRITERIA, ARE RELATIVELY CONSISTENT OVER TIME.
ANY DEVIATIONS OF REALIZED RETURNS FROM THE INDEX WHICH ARE IN EXCESS OF
THOSE EXPECTED WILL BE ANALYZED FOR SOURCES OF VARIANCE. THE FUND'S PORTFOLIO
WILL BE INVESTED IN A MANNER TO CLOSELY TRACK THE INDEX. TO THE EXTENT THAT THE
FUND HAS INVESTMENTS IN THE SPECIAL EQUITIES PORTFOLIO AND/OR THE HIGH SOCIAL
IMPACT PORTFOLIO, THE FUND MAY BE LESS ABLE TO CLOSELY TRACK THE INDEX THAN IF
IT WERE INVESTED ONLY IN THE MANNER OF THE INDEX. BOTH OF THESE PORTFOLIOS ARE
OF LIMITED SIZE (NOT MORE THAN 1% OF FUND NET ASSETS, AND NO INVESTMENT PRIOR TO
THE FUND REACHING $50,000,000 IN NET ASSETS) SO THAT THE TRACKING ERROR INDUCED
BY SUCH INVESTMENTS WOULD BE LIMITED.
SMALL CAP ISSUERS
THE SECURITIES OF SMALL CAP ISSUERS MAY BE LESS ACTIVELY TRADED THAN THE
SECURITIES OF LARGER ISSUERS, MAY TRADE IN A MORE LIMITED VOLUME, AND MAY CHANGE
IN VALUE MORE ABRUPTLY THAN SECURITIES OF LARGER COMPANIES.
INFORMATION CONCERNING THESE SECURITIES MAY NOT BE READILY AVAILABLE SO
THAT THE COMPANIES MAY BE LESS ACTIVELY FOLLOWED BY STOCK ANALYSTS. SMALL-CAP
ISSUERS DO NOT USUALLY PARTICIPATE IN MARKET RALLIES TO THE SAME EXTENT AS MORE
WIDELY-KNOWN SECURITIES, AND THEY TEND TO HAVE A RELATIVELY HIGHER PERCENTAGE OF
INSIDER OWNERSHIP.
INVESTING IN SMALLER, NEW ISSUERS GENERALLY INVOLVES GREATER RISK THAN
INVESTING IN LARGER, ESTABLISHED ISSUERS. SMALL CAP ISSUERS MAY HAVE LIMITED
PRODUCT LINES, MARKETS OR FINANCIAL RESOURCES AND MAY LACK MANAGEMENT DEPTH. THE
SECURITIES IN SUCH COMPANIES MAY ALSO HAVE LIMITED MARKETABILITY AND MAY BE
SUBJECT TO MORE ABRUPT OR ERRATIC MARKET MOVEMENTS THAN SECURITIES OF LARGER,
MORE ESTABLISHED COMPANIES OR THE MARKET AVERAGES IN GENERAL.
REPURCHASE AGREEMENTS
THE FUND MAY PURCHASE DEBT SECURITIES SUBJECT TO REPURCHASE AGREEMENTS,
WHICH ARE ARRANGEMENTS UNDER WHICH THE FUND BUYS A SECURITY, AND THE SELLER
SIMULTANEOUSLY AGREES TO REPURCHASE THE SECURITY AT A SPECIFIED TIME AND PRICE
REFLECTING A MARKET RATE OF INTEREST. THE FUND ENGAGES IN REPURCHASE AGREEMENTS
IN ORDER TO EARN A HIGHER RATE OF RETURN THAN IT COULD EARN SIMPLY BY INVESTING
IN THE OBLIGATION WHICH IS THE SUBJECT OF THE REPURCHASE AGREEMENT. REPURCHASE
AGREEMENTS ARE NOT, HOWEVER, WITHOUT RISK. IN THE EVENT OF THE BANKRUPTCY OF A
SELLER DURING THE TERM OF A REPURCHASE AGREEMENT, A LEGAL QUESTION EXISTS AS TO
WHETHER THE FUND WOULD BE DEEMED THE OWNER OF THE UNDERLYING SECURITY OR WOULD
BE DEEMED ONLY TO HAVE A SECURITY INTEREST IN AND LIEN UPON SUCH SECURITY. THE
FUND WILL ONLY ENGAGE IN REPURCHASE AGREEMENTS WITH RECOGNIZED SECURITIES
DEALERS AND BANKS DETERMINED TO PRESENT MINIMAL CREDIT RISK BY THE ADVISOR. IN
ADDITION, THE FUND WILL ONLY ENGAGE IN REPURCHASE AGREEMENTS REASONABLY DESIGNED
TO SECURE FULLY DURING THE TERM OF THE AGREEMENT THE SELLER'S OBLIGATION TO
REPURCHASE THE UNDERLYING SECURITY AND WILL MONITOR THE MARKET VALUE OF THE
UNDERLYING SECURITY DURING THE TERM OF THE AGREEMENT. IF THE VALUE OF THE
UNDERLYING SECURITY DECLINES AND IS NOT AT LEAST EQUAL TO THE REPURCHASE PRICE
DUE THE FUND PURSUANT TO THE AGREEMENT, THE FUND WILL REQUIRE THE SELLER TO
PLEDGE ADDITIONAL SECURITIES OR CASH TO SECURE THE SELLER'S OBLIGATIONS PURSUANT
TO THE AGREEMENT. IF THE SELLER DEFAULTS ON ITS OBLIGATION TO REPURCHASE AND THE
VALUE OF THE UNDERLYING SECURITY DECLINES, THE FUND MAY INCUR A LOSS AND MAY
INCUR EXPENSES IN SELLING THE UNDERLYING SECURITY. THE FUND MAY HAVE A
DECREASED RETURN IN A REPURCHASE AGREEMENT IF THE REPURCHASE RATE IS LESS THAN
THE RETURN THE FUND MIGHT HAVE RECEIVED IF IT BOUGHT THE INSTRUMENT DIRECTLY,
ALTHOUGH ANY CASH POSITION INVESTED IN A REPURCHASE AGREEMENT WILL NOT BE
EXPOSED TO MARKET AND INTEREST RATE RISK THAT THE DIRECT INVESTMENT WOULD HAVE
HAD. REPURCHASE AGREEMENTS ARE ALWAYS FOR PERIODS OF LESS THAN ONE YEAR.
REPURCHASE AGREEMENTS NOT TERMINABLE WITHIN SEVEN DAYS ARE CONSIDERED ILLIQUID.
REVERSE REPURCHASE AGREEMENTS
THE FUND MAY ALSO ENGAGE IN REVERSE REPURCHASE AGREEMENTS. UNDER A REVERSE
REPURCHASE AGREEMENT, THE FUND SELLS PORTFOLIO SECURITIES TO A BANK OR
SECURITIES DEALER AND AGREES TO REPURCHASE THOSE SECURITIES FROM SUCH PARTY AT
AN AGREED UPON DATE AND PRICE REFLECTING A MARKET RATE OF INTEREST. THE FUND
INVESTS THE PROCEEDS FROM EACH REVERSE REPURCHASE AGREEMENT IN OBLIGATIONS IN
WHICH IT IS AUTHORIZED TO INVEST. THE FUND INTENDS TO ENTER INTO A REVERSE
REPURCHASE AGREEMENT ONLY WHEN THE INTEREST INCOME PROVIDED FOR IN THE
OBLIGATION IN WHICH THE FUND INVESTS THE PROCEEDS IS EXPECTED TO EXCEED THE
AMOUNT THE FUND WILL PAY IN INTEREST TO THE OTHER PARTY TO THE AGREEMENT PLUS
ALL COSTS ASSOCIATED WITH THE TRANSACTIONS. THE FUND DOES NOT INTEND TO BORROW
FOR LEVERAGE PURPOSES. THE FUNDS WILL ONLY BE PERMITTED TO PLEDGE ASSETS TO THE
EXTENT NECESSARY TO SECURE BORROWINGS AND REVERSE REPURCHASE AGREEMENTS.
DURING THE TIME A REVERSE REPURCHASE AGREEMENT IS OUTSTANDING, THE FUND
WILL MAINTAIN IN A SEGREGATED CUSTODIAL ACCOUNT AN AMOUNT OF CASH, US GOVERNMENT
SECURITIES OR OTHER LIQUID, HIGH-QUALITY DEBT SECURITIES EQUAL IN VALUE TO THE
REPURCHASE PRICE. THE FUND WILL MARK TO MARKET THE VALUE OF ASSETS HELD IN THE
SEGREGATED ACCOUNT, AND WILL PLACE ADDITIONAL ASSETS IN THE ACCOUNT WHENEVER THE
TOTAL VALUE OF THE ACCOUNT FALLS BELOW THE AMOUNT REQUIRED UNDER APPLICABLE
REGULATIONS.
THE FUND'S USE OF REVERSE REPURCHASE AGREEMENTS INVOLVES THE RISK THAT THE
OTHER PARTY TO THE AGREEMENTS COULD BECOME SUBJECT TO BANKRUPTCY OR LIQUIDATION
PROCEEDINGS DURING THE PERIOD THE AGREEMENTS ARE OUTSTANDING. IN SUCH EVENT, THE
FUND MAY NOT BE ABLE TO REPURCHASE THE SECURITIES IT HAS SOLD TO THAT OTHER
PARTY. UNDER THOSE CIRCUMSTANCES, IF AT THE EXPIRATION OF THE AGREEMENT SUCH
SECURITIES ARE OF GREATER VALUE THAN THE PROCEEDS OBTAINED BY THE FUND UNDER THE
AGREEMENTS, THE FUND MAY HAVE BEEN BETTER OFF HAD IT NOT ENTERED INTO THE
AGREEMENT. HOWEVER, THE FUND WILL ENTER INTO REVERSE REPURCHASE AGREEMENTS ONLY
WITH BANKS AND DEALERS WHICH THE ADVISOR BELIEVES PRESENT MINIMAL CREDIT RISKS
UNDER GUIDELINES ADOPTED BY THE FUND'S BOARD OF DIRECTORS. IN ADDITION, THE FUND
BEARS THE RISK THAT THE MARKET VALUE OF THE SECURITIES IT SOLD MAY DECLINE BELOW
THE AGREED-UPON REPURCHASE PRICE, IN WHICH CASE THE DEALER MAY REQUEST THE FUND
TO POST ADDITIONAL COLLATERAL.
HIGH SOCIAL IMPACT INVESTMENTS
THE FUND WILL NOT PURCHASE DEBT SECURITIES OTHER THAN HIGH SOCIAL IMPACT
INVESTMENTS (OR MONEY MARKET INSTRUMENTS). THE HIGH SOCIAL IMPACT INVESTMENTS
PROGRAM TARGETS A PERCENTAGE OF THE FUND'S ASSETS TO DIRECTLY SUPPORT THE GROWTH
OF COMMUNITY-BASED ORGANIZATIONS FOR THE PURPOSES OF PROMOTING BUSINESS
CREATION, HOUSING DEVELOPMENT AND ECONOMIC AND SOCIAL DEVELOPMENT OF URBAN AND
RURAL COMMUNITIES. THESE SECURITIES ARE UNRATED - THEY ARE EXPECTED TO BE THE
EQUIVALENT OF NON-INVESTMENT GRADE DEBT SECURITIES - THAT IS, LOWER QUALITY
DEBT SECURITIES (GENERALLY THOSE RATED BB OR LOWER BY S&P OR BA OR LOWER BY
MOODY'S, KNOWN AS "JUNK BONDS." THESE SECURITIES HAVE MODERATE TO POOR
PROTECTION OF PRINCIPAL AND INTEREST PAYMENTS AND HAVE SPECULATIVE
CHARACTERISTICS. SEE APPENDIX FOR A DESCRIPTION OF THE RATINGS.) THE ANNUAL
RETURN ON HIGH SOCIAL IMPACT INVESTMENTS IS BETWEEN 0% AND 4%. THUS, RATHER THAN
EARNING A HIGHER RATE, AS WOULD BE EXPECTED, TO COMPENSATE FOR HIGHER THE RISK
(I.E., LOWER CREDIT QUALITY), THEY EARN A RATE OF RETURN THAT IS LOWER THAN THE
RATE CURRENTLY EARNED BY HIGH QUALITY U.S. TREASURY SECURITIES. THERE IS NO
SECONDARY MARKET FOR THESE SECURITIES.
THE FUND EXPECTS TO PURCHASE ALL OF ITS HIGH SOCIAL IMPACT INVESTMENTS IN
NOTES ISSUED BY THE CALVERT SOCIAL INVESTMENT FOUNDATION, A NON-PROFIT
ORGANIZATION, LEGALLY DISTINCT FROM CALVERT GROUP, ORGANIZED AS A CHARITABLE AND
EDUCATIONAL FOUNDATION FOR THE PURPOSE OF INCREASING PUBLIC AWARENESS AND
KNOWLEDGE OF THE CONCEPT OF SOCIALLY RESPONSIBLE INVESTING. THE FOUNDATION
PREPARES ITS OWN CAREFUL CREDIT ANALYSIS TO ATTEMPT TO IDENTIFY THOSE COMMUNITY
DEVELOPMENT ISSUERS WHOSE FINANCIAL CONDITION IS ADEQUATE TO MEET FUTURE
OBLIGATIONS OR IS EXPECTED TO BE ADEQUATE IN THE FUTURE. THROUGH PORTFOLIO
DIVERSIFICATION AND CREDIT ANALYSIS, INVESTMENT RISK CAN BE REDUCED, ALTHOUGH
THERE CAN BE NO ASSURANCE THAT LOSSES WILL NOT OCCUR. THE FOUNDATION MAINTAINS A
CERTAIN REQUIRED LEVEL OF CAPITAL UPON WHICH THE FUND COULD RELY IF A NOTE WERE
EVER TO DEFAULT.
FUTURES TRANSACTIONS
THE FUND CAN USE FINANCIAL FUTURES TO INCREASE OR DECREASE ITS EXPOSURE TO
CHANGING SECURITY PRICES. FUTURES CONTRACTS WILL BE USED ONLY FOR THE LIMITED
PURPOSE OF HEDGING THE FUND'S CASH POSITION; A FUTURES CONTRACT MAY BE PURCHASED
IF THE FUND HAS EXCESS CASH, UNTIL THE FUND CAN GET IN INVESTED IN STOCKS
REPLICATING THE INDEX. SIMILARLY, IF THE FUND SHOULD RECEIVE A LARGE REDEMPTION
REQUEST, IT COULD SELL A FUTURES CONTRACT TO LESSEN THE EXPOSURE TO THE MARKET.
THE FUND CAN USE THESE PRACTICES ONLY TO FOR HEDGING PURPOSES AND NOT FOR
SPECULATION OR LEVERAGE. IF THE ADVISOR AND/OR SUBADVISOR JUDGES MARKET
CONDITIONS INCORRECTLY OR EMPLOYS A STRATEGY THAT DOES NOT CORRELATE WELL WITH A
FUND'S INVESTMENTS, OR IF THE COUNTERPARTY TO THE TRANSACTION DOES NOT PERFORM
AS PROMISED, THESE TECHNIQUES COULD RESULT IN A LOSS. THESE TECHNIQUES MAY
INCREASE THE VOLATILITY OF A FUND AND MAY INVOLVE A SMALL INVESTMENT OF CASH
RELATIVE TO THE MAGNITUDE OF THE RISK ASSUMED.
A FUTURES CONTRACT IS AN AGREEMENT BETWEEN TWO PARTIES TO BUY AND SELL A
SECURITY ON A FUTURE DATE WHICH HAS THE EFFECT OF ESTABLISHING THE CURRENT PRICE
FOR THE SECURITY. ALTHOUGH FUTURES CONTRACTS BY THEIR TERMS REQUIRE ACTUAL
DELIVERY AND ACCEPTANCE OF SECURITIES, IN MOST CASES THE CONTRACTS ARE CLOSED
OUT BEFORE THE SETTLEMENT DATE WITHOUT THE MAKING OR TAKING OF DELIVERY OF
SECURITIES. UPON BUYING OR SELLING A FUTURES CONTRACT, THE FUND DEPOSITS INITIAL
MARGIN WITH ITS CUSTODIAN, AND THEREAFTER DAILY PAYMENTS OF MAINTENANCE MARGIN
ARE MADE TO AND FROM THE EXECUTING BROKER. PAYMENTS OF MAINTENANCE MARGIN
REFLECT CHANGES IN THE VALUE OF THE FUTURES CONTRACT, WITH THE FUND BEING
OBLIGATED TO MAKE SUCH PAYMENTS IF ITS FUTURES POSITION BECOMES LESS VALUABLE
AND ENTITLED TO RECEIVE SUCH PAYMENTS IF ITS POSITIONS BECOME MORE VALUABLE.
FUTURES CONTRACTS ARE DESIGNED BY BOARDS OF TRADE WHICH ARE DESIGNATED
"CONTRACTS MARKETS" BY THE COMMODITY FUTURES TRADING COMMISSION ("CFTC"). AS
SERIES OF A REGISTERED INVESTMENT COMPANY, THE FUND IS ELIGIBLE FOR EXCLUSION
FROM THE CFTC'S DEFINITION OF "COMMODITY POOL OPERATOR," MEANING THAT THE FUND
MAY INVEST IN FUTURES CONTRACTS UNDER SPECIFIED CONDITIONS WITHOUT REGISTERING
WITH THE CFTC. FUTURES CONTRACTS TRADE ON CONTRACTS MARKETS IN A MANNER THAT IS
SIMILAR TO THE WAY A STOCK TRADES ON A STOCK EXCHANGE AND THE BOARDS OF TRADE,
THROUGH THEIR CLEARING CORPORATIONS, GUARANTEE PERFORMANCE OF THE CONTRACTS.
IF THE FUND HAS SOLD FUTURES TO HEDGE AGAINST DECLINE IN THE MARKET AND
THE MARKET LATER ADVANCES, THE FUND MAY SUFFER A LOSS ON THE FUTURES CONTRACTS
WHICH IT WOULD NOT HAVE EXPERIENCED IF IT HAD NOT HEDGED. CORRELATION IS ALSO
IMPERFECT BETWEEN MOVEMENTS IN THE PRICES OF FUTURES CONTRACTS AND MOVEMENTS IN
PRICES OF THE SECURITIES WHICH ARE THE SUBJECT OF THE HEDGE. THUS THE PRICE OF
THE FUTURES CONTRACT MAY MOVE MORE THAN OR LESS THAN THE PRICE OF THE SECURITIES
BEING HEDGED.
THE FUND CAN CLOSE OUT FUTURES POSITIONS ONLY ON AN EXCHANGE OR BOARD OF
TRADE WHICH PROVIDES A SECONDARY MARKET IN SUCH FUTURES. ALTHOUGH THE FUND
INTEND TO PURCHASE OR SELL ONLY SUCH FUTURES FOR WHICH AN ACTIVE SECONDARY
MARKET APPEARS TO EXIST, THERE CAN BE NO ASSURANCE THAT SUCH A MARKET WILL EXIST
FOR ANY PARTICULAR FUTURES CONTRACT AT ANY PARTICULAR TIME. THIS MIGHT PREVENT
THE FUND FROM CLOSING A FUTURES POSITION, WHICH COULD REQUIRE THE FUND TO MAKE
DAILY CASH PAYMENTS WITH RESPECT TO ITS POSITION IN THE EVENT OF ADVERSE PRICE
MOVEMENTS.
LENDING PORTFOLIO SECURITIES
THE FUND MAY LEND ITS SECURITIES TO MEMBER FIRMS OF THE NEW YORK STOCK
EXCHANGE AND COMMERCIAL BANKS WITH ASSETS OF ONE BILLION DOLLARS OR MORE,
PROVIDED THE VALUE OF THE SECURITIES LOANED WILL NOT EXCEED 33 1/3% OF ASSETS.
ANY SUCH LOANS MUST BE SECURED CONTINUOUSLY IN THE FORM OF CASH OR CASH
EQUIVALENTS SUCH AS US TREASURY BILLS. THE AMOUNT OF THE COLLATERAL MUST ON A
CURRENT BASIS EQUAL OR EXCEED THE MARKET VALUE OF THE LOANED SECURITIES, AND THE
FUND MUST BE ABLE TO TERMINATE SUCH LOANS UPON NOTICE AT ANY TIME. THE FUND WILL
EXERCISE ITS RIGHT TO TERMINATE A SECURITIES LOAN IN ORDER TO PRESERVE ITS RIGHT
TO VOTE UPON MATTERS OF IMPORTANCE AFFECTING HOLDERS OF THE SECURITIES,
INCLUDING SOCIAL RESPONSIBILITY MATTERS.
THE ADVANTAGE OF SUCH LOANS IS THAT THE FUND CONTINUES TO RECEIVE THE
EQUIVALENT OF THE INTEREST EARNED OR DIVIDENDS PAID BY THE ISSUERS ON THE LOANED
SECURITIES WHILE AT THE SAME TIME EARNING INTEREST ON THE CASH OR EQUIVALENT
COLLATERAL WHICH MAY BE INVESTED IN ACCORDANCE WITH THE FUND'S INVESTMENT
OBJECTIVE, POLICIES AND RESTRICTIONS.
SECURITIES LOANS ARE USUALLY MADE TO BROKER-DEALERS AND OTHER FINANCIAL
INSTITUTIONS TO FACILITATE THEIR DELIVERY OF SUCH SECURITIES. AS WITH ANY
EXTENSION OF CREDIT, THERE MAY BE RISKS OF DELAY IN RECOVERY AND POSSIBLY LOSS
OF RIGHTS IN THE LOANED SECURITIES SHOULD THE BORROWER OF THE LOANED SECURITIES
FAIL FINANCIALLY. HOWEVER, THE FUND WILL MAKE LOANS OF ITS SECURITIES ONLY TO
THOSE FIRMS THE ADVISOR OR SUBADVISOR DEEMS CREDITWORTHY AND ONLY ON TERMS THE
ADVISOR BELIEVES SHOULD COMPENSATE FOR SUCH RISK. ON TERMINATION OF THE LOAN,
THE BORROWER IS OBLIGATED TO RETURN THE SECURITIES TO THE FUND. THE FUND WILL
RECOGNIZE ANY GAIN OR LOSS IN THE MARKET VALUE OF THE SECURITIES DURING THE LOAN
PERIOD. THE FUND MAY PAY REASONABLE CUSTODIAL FEES IN CONNECTION WITH THE LOAN.
INVESTMENT RESTRICTIONS
-----------------------
FUNDAMENTAL INVESTMENT RESTRICTIONS
THE FUND HAS ADOPTED THE FOLLOWING FUNDAMENTAL INVESTMENT RESTRICTIONS.
THESE RESTRICTIONS CANNOT BE CHANGED WITHOUT THE APPROVAL OF THE HOLDERS OF A
MAJORITY OF THE OUTSTANDING SHARES OF THE FUND.
THE FUND MAY NOT:
(1) MAKE ANY INVESTMENT INCONSISTENT WITH ITS CLASSIFICATION AS A
DIVERSIFIED INVESTMENT COMPANY UNDER THE 1940 ACT.
(2) CONCENTRATE ITS INVESTMENTS IN THE SECURITIES OF ISSUERS PRIMARILY ENGAGED
IN ANY PARTICULAR INDUSTRY (OTHER THAN SECURITIES ISSUED OR GUARANTEED BY THE US
GOVERNMENT OR ITS AGENCIES OR INSTRUMENTALITIES AND REPURCHASE AGREEMENTS
SECURED THEREBY.)
(3) ISSUE SENIOR SECURITIES OR BORROW MONEY, EXCEPT FROM BANKS FOR TEMPORARY OR
EMERGENCY PURPOSES AND THEN ONLY IN AN AMOUNT UP TO 33 1/3% OF THE VALUE OF THE
FUND'S TOTAL ASSETS AND EXCEPT BY ENGAGING IN REVERSE REPURCHASE AGREEMENTS.
IN ORDER TO SECURE ANY PERMITTED BORROWINGS AND REVERSE REPURCHASE AGREEMENTS
UNDER THIS SECTION, THE FUND MAY PLEDGE, MORTGAGE OR HYPOTHECATE ITS ASSETS.
(4) UNDERWRITE THE SECURITIES OF OTHER ISSUERS, EXCEPT AS ALLOWED BY LAW OR TO
THE EXTENT THAT THE PURCHASE OF OBLIGATIONS IN ACCORDANCE WITH THE FUND'S
INVESTMENT OBJECTIVE AND POLICIES, EITHER DIRECTLY FROM THE ISSUER, OR FROM AN
UNDERWRITER FOR AN ISSUER, MAY BE DEEMED AN UNDERWRITING
(5) INVEST DIRECTLY IN COMMODITIES OR REAL ESTATE, ALTHOUGH THE FUND MAY INVEST
IN FINANCIAL FUTURES, AND IN SECURITIES WHICH ARE SECURED BY REAL ESTATE OR REAL
ESTATE MORTGAGES AND SECURITIES OF ISSUERS WHICH INVEST OR DEAL IN COMMODITIES,
COMMODITY FUTURES, REAL ESTATE OR REAL ESTATE MORTGAGES.
(6) MAKE LOANS, OTHER THAN THROUGH THE PURCHASE OF MONEY MARKET INSTRUMENTS AND
REPURCHASE AGREEMENTS OR BY THE PURCHASE OF BONDS, DEBENTURES OR OTHER DEBT
SECURITIES, OR PORTFOLIO SECURITIES LENDING. THE PURCHASE OF ALL OR A PORTION OF
AN ISSUE OF PUBLICLY OR PRIVATELY DISTRIBUTED DEBT OBLIGATIONS IN ACCORDANCE
WITH THE FUND'S INVESTMENT OBJECTIVE, POLICIES AND RESTRICTIONS, SHALL NOT
CONSTITUTE THE MAKING OF A LOAN.
UNDER CURRENT LAW, A DIVERSIFIED INVESTMENT COMPANY, WITH RESPECT TO 75% OF ITS
ASSETS, CAN INVEST NO MORE THAN 5% OF ITS ASSETS IN THE SECURITIES OF ANY ONE
ISSUER, AND MAY NOT ACQUIRE MORE THAN 10% OF THE VOTING SECURITIES OF ANY
ISSUER. UNDER CURRENT LAW, "CONCENTRATE" MEANS THE FUND CANNOT INVEST 25% OR
MORE IN THE SECURITIES OF ISSUERS PRIMARILY ENGAGED IN ANY ONE INDUSTRY. UNDER
CURRENT LAW THE FUND MAY UNDERWRITE SECURITIES ONLY IN COMPLIANCE WITH THE
CONDITIONS OF SECTION 10(F) OF THE INVESTMENT COMPANY ACT AND THE RULES
THEREUNDER.
NONFUNDAMENTAL INVESTMENT RESTRICTIONS
THE FUND HAS ADOPTED THE FOLLOWING NONFUNDAMENTAL INVESTMENT RESTRICTIONS.
A NONFUNDAMENTAL INVESTMENT RESTRICTION CAN BE CHANGED BY THE BOARD AT ANY TIME
WITHOUT A SHAREHOLDER VOTE.
THE FUND MAY NOT:
(1) PURCHASE THE OBLIGATIONS OF FOREIGN ISSUERS, IF AS A RESULT, FOREIGN
SECURITIES WOULD EXCEED 5% OF THE VALUE OF THE FUND'S NET ASSETS.
(2) PURCHASE ILLIQUID SECURITIES IF MORE THAN 15% OF THE VALUE OF THE FUND'S NET
ASSETS WOULD BE INVESTED IN SUCH SECURITIES.
(3) PURCHASE DEBT SECURITIES (OTHER THAN MONEY MARKET INSTRUMENTS OR HIGH SOCIAL
IMPACT INVESTMENTS).
(4) ENTER INTO A FUTURES CONTRACT OR AN OPTION ON A FUTURES CONTRACT IF THE
AGGREGATE INITIAL MARGINS AND PREMIUMS REQUIRED TO ESTABLISH THESE POSITIONS
WOULD EXCEED 5% OF THE FUND'S NET ASSETS.
(5) PURCHASE PUT OR CALL OPTIONS.
(6) ENTER INTO REVERSE REPURCHASE AGREEMENTS IF THE AGGREGATE PROCEEDS FROM
OUTSTANDING REVERSE REPURCHASE AGREEMENTS, WHEN ADDED TO OTHER OUTSTANDING
BORROWINGS PERMITTED BY THE 1940 ACT, WOULD EXCEED 33 1/3% OF THE FUND'S TOTAL
ASSETS. THE FUND DOES NOT INTEND TO MAKE ANY PURCHASES OF SECURITIES IF
BORROWING EXCEEDS 5% OF ITS TOTAL ASSETS.
(7) PURCHASE SECURITIES THAT ARE NOT IN THE CALVERT SOCIAL INDEX IF, AS A
RESULT, SUCH SECURITIES WOULD
EXCEED 5% OF THE VALUE OF THE FUND'S NET ASSETS.
ANY INVESTMENT RESTRICTION WHICH INVOLVES A MAXIMUM PERCENTAGE OF
SECURITIES OR ASSETS SHALL NOT BE CONSIDERED TO BE VIOLATED UNLESS AN EXCESS
OVER THE APPLICABLE PERCENTAGE OCCURS IMMEDIATELY AFTER AN ACQUISITION OF
SECURITIES OR UTILIZATION OF ASSETS AND RESULTS THEREFROM.
DIVIDENDS, DISTRIBUTIONS, AND TAXES
-----------------------------------
THE FUND INTENDS TO QUALIFY AS REGULATED INVESTMENT COMPANIES UNDER
SUBCHAPTER M OF THE INTERNAL REVENUE CODE. IF FOR ANY REASON THE FUND SHOULD
FAIL TO QUALIFY, IT WOULD BE TAXED AS A CORPORATION AT THE FUND LEVEL, RATHER
THAN PASSING THROUGH ITS INCOME AND GAINS TO SHAREHOLDERS.
DISTRIBUTIONS OF REALIZED NET CAPITAL GAINS, IF ANY, ARE NORMALLY PAID ONCE
A YEAR; HOWEVER, THE FUND DOES NOT INTEND TO MAKE ANY SUCH DISTRIBUTIONS UNLESS
AVAILABLE CAPITAL LOSS CARRYOVERS, IF ANY, HAVE BEEN USED OR HAVE EXPIRED.
GENERALLY, DIVIDENDS (INCLUDING SHORT-TERM CAPITAL GAINS) AND DISTRIBUTIONS
ARE TAXABLE TO THE SHAREHOLDER IN THE YEAR THEY ARE PAID. HOWEVER, ANY DIVIDENDS
AND DISTRIBUTIONS PAID IN JANUARY BUT DECLARED DURING THE PRIOR THREE MONTHS ARE
TAXABLE IN THE YEAR DECLARED.
THE FUND IS REQUIRED TO WITHHOLD 31% OF ANY REPORTABLE DIVIDENDS AND
LONG-TERM CAPITAL GAIN DISTRIBUTIONS PAID AND 31% REPORTABLE OF EACH REDEMPTION
TRANSACTION IF: (A) THE SHAREHOLDER'S SOCIAL SECURITY NUMBER OR OTHER TAXPAYER
IDENTIFICATION NUMBER ("TIN") IS NOT PROVIDED OR AN OBVIOUSLY INCORRECT TIN IS
PROVIDED; (B) THE SHAREHOLDER DOES NOT CERTIFY UNDER PENALTIES OF PERJURY THAT
THE TIN PROVIDED IS THE SHAREHOLDER'S CORRECT TIN AND THAT THE SHAREHOLDER IS
NOT SUBJECT TO BACKUP WITHHOLDING UNDER SECTION 3406(A)(1)(C) OF THE INTERNAL
REVENUE CODE BECAUSE OF UNDERREPORTING (HOWEVER, FAILURE TO PROVIDE
CERTIFICATION AS TO THE APPLICATION OF SECTION 3406(A)(1)(C) WILL RESULT ONLY IN
BACKUP WITHHOLDING ON DIVIDENDS, NOT ON REDEMPTIONS); OR (C) THE FUND IS
NOTIFIED BY THE INTERNAL REVENUE SERVICE THAT THE TIN PROVIDED BY THE
SHAREHOLDER IS INCORRECT OR THAT THERE HAS BEEN UNDERREPORTING OF INTEREST OR
DIVIDENDS BY THE SHAREHOLDER. AFFECTED SHAREHOLDERS WILL RECEIVE STATEMENTS AT
LEAST ANNUALLY SPECIFYING THE AMOUNT WITHHELD.
IN ADDITION, THE FUND IS REQUIRED TO REPORT TO THE INTERNAL REVENUE SERVICE
THE FOLLOWING INFORMATION WITH RESPECT TO EACH REDEMPTION TRANSACTION OCCURRING
IN THE FUND:(A) THE SHAREHOLDER'S NAME, ADDRESS, ACCOUNT NUMBER AND TAXPAYER
IDENTIFICATION NUMBER; (B) THE TOTAL DOLLAR VALUE OF THE REDEMPTIONS; AND (C)
THE FUND'S IDENTIFYING CUSIP NUMBER.
CERTAIN SHAREHOLDERS ARE, HOWEVER, EXEMPT FROM THE BACKUP WITHHOLDING AND
BROKER REPORTING REQUIREMENTS. EXEMPT SHAREHOLDERS INCLUDE: CORPORATIONS;
FINANCIAL INSTITUTIONS; TAX-EXEMPT ORGANIZATIONS; INDIVIDUAL RETIREMENT PLANS;
THE U.S., A STATE, THE DISTRICT OF COLUMBIA, A U.S. POSSESSION, A FOREIGN
GOVERNMENT, AN INTERNATIONAL ORGANIZATION, OR ANY POLITICAL SUBDIVISION, AGENCY
OR INSTRUMENTALITY OF ANY OF THE FOREGOING; U.S. REGISTERED COMMODITIES OR
SECURITIES DEALERS; REAL ESTATE INVESTMENT TRUSTS; REGISTERED INVESTMENT
COMPANIES; BANK COMMON TRUST FUNDS; CERTAIN CHARITABLE TRUSTS; FOREIGN CENTRAL
BANKS OF ISSUE. NON-RESIDENT ALIENS, CERTAIN FOREIGN PARTNERSHIPS AND FOREIGN
CORPORATIONS ARE GENERALLY NOT SUBJECT TO EITHER REQUIREMENT BUT MAY INSTEAD BE
SUBJECT TO WITHHOLDING UNDER SECTIONS 1441 OR 1442 OF THE INTERNAL REVENUE CODE.
SHAREHOLDERS CLAIMING EXEMPTION FROM BACKUP WITHHOLDING AND BROKER REPORTING
SHOULD CALL OR WRITE THE FUND FOR FURTHER INFORMATION.
MANY STATES DO NOT TAX THE PORTION OF THE FUND'S DIVIDENDS WHICH IS DERIVED
FROM INTEREST ON U.S. GOVERNMENT OBLIGATIONS. STATE LAW VARIES CONSIDERABLY
CONCERNING THE TAX STATUS OF DIVIDENDS DERIVED FROM U.S. GOVERNMENT OBLIGATIONS.
ACCORDINGLY, SHAREHOLDERS SHOULD CONSULT THEIR TAX ADVISORS ABOUT THE TAX STATUS
OF DIVIDENDS AND DISTRIBUTIONS FROM THE FUND IN THEIR RESPECTIVE JURISDICTIONS.
DIVIDENDS PAID BY THE FUND MAY BE ELIGIBLE FOR THE DIVIDENDS RECEIVED
DEDUCTION AVAILABLE TO CORPORATE TAXPAYERS. CORPORATE TAXPAYERS REQUIRING THIS
INFORMATION MAY CONTACT CALVERT.
NET ASSET VALUE
---------------
THE PUBLIC OFFERING PRICE OF THE SHARES OF THE FUND IS THE RESPECTIVE NET
ASSET VALUE PER SHARE (PLUS, FOR CLASS A SHARES, THE APPLICABLE SALES CHARGE).
THE NET ASSET VALUE FLUCTUATES BASED ON THE RESPECTIVE VALUE OF THE FUND'S
INVESTMENTS. THE NET ASSET VALUE PER SHARE FOR EACH CLASS IS DETERMINED EVERY
BUSINESS DAY AT THE CLOSE OF THE REGULAR SESSION OF THE NEW YORK STOCK EXCHANGE
(NORMALLY 4:00 P.M. EASTERN TIME) AND AT SUCH OTHER TIMES AS MAY BE NECESSARY OR
APPROPRIATE. THE FUND DOES NOT DETERMINE NET ASSET VALUE ON CERTAIN NATIONAL
HOLIDAYS OR OTHER DAYS ON WHICH THE NEW YORK STOCK EXCHANGE IS CLOSED: NEW
YEAR'S DAY, MARTIN LUTHER KING DAY, PRESIDENTS' DAY, GOOD FRIDAY, MEMORIAL DAY,
INDEPENDENCE DAY, LABOR DAY, THANKSGIVING DAY, AND CHRISTMAS DAY. THE FUND'S NET
ASSET VALUE PER SHARE IS DETERMINED BY DIVIDING TOTAL NET ASSETS (THE VALUE OF
ITS ASSETS NET OF LIABILITIES, INCLUDING ACCRUED EXPENSES AND FEES) BY THE
NUMBER OF SHARES OUTSTANDING FOR THAT CLASS.
THE ASSETS OF THE FUND ARE VALUED AS FOLLOWS: (A) SECURITIES FOR WHICH
MARKET QUOTATIONS ARE READILY AVAILABLE ARE VALUED AT THE MOST RECENT CLOSING
PRICE, MEAN BETWEEN BID AND ASKED PRICE, OR YIELD EQUIVALENT AS OBTAINED FROM
ONE OR MORE MARKET MAKERS FOR SUCH SECURITIES; (B) SECURITIES MATURING WITHIN 60
DAYS MAY BE VALUED AT COST, PLUS OR MINUS ANY AMORTIZED DISCOUNT OR PREMIUM,
UNLESS THE BOARD OF DIRECTORS DETERMINES SUCH METHOD NOT TO BE APPROPRIATE UNDER
THE CIRCUMSTANCES; AND (C) ALL OTHER SECURITIES AND ASSETS FOR WHICH MARKET
QUOTATIONS ARE NOT READILY AVAILABLE WILL BE FAIRLY VALUED BY THE ADVISOR IN
GOOD FAITH UNDER THE SUPERVISION OF THE BOARD OF DIRECTORS.
CALCULATION OF TOTAL RETURN
---------------------------
THE FUND MAY ADVERTISE "TOTAL RETURN." TOTAL RETURN IS CALCULATED
SEPARATELY FOR EACH CLASS. TOTAL RETURN DIFFERS FROM YIELD IN THAT YIELD FIGURES
MEASURE ONLY THE INCOME COMPONENT OF THE FUND'S INVESTMENTS, WHILE TOTAL RETURN
INCLUDES NOT ONLY THE EFFECT OF INCOME DIVIDENDS BUT ALSO ANY CHANGE IN NET
ASSET VALUE, OR PRINCIPAL AMOUNT, DURING THE STATED PERIOD. TOTAL RETURN IS
COMPUTED PER CLASS BY TAKING THE TOTAL NUMBER OF SHARES PURCHASED BY A
HYPOTHETICAL $1,000 INVESTMENT AFTER DEDUCTING ANY APPLICABLE SALES CHARGE,
ADDING ALL ADDITIONAL SHARES PURCHASED WITHIN THE PERIOD WITH REINVESTED
DIVIDENDS AND DISTRIBUTIONS, CALCULATING THE VALUE OF THOSE SHARES AT THE END OF
THE PERIOD, AND DIVIDING THE RESULT BY THE INITIAL $1,000 INVESTMENT. FOR
PERIODS OF MORE THAN ONE YEAR, THE CUMULATIVE TOTAL RETURN IS THEN ADJUSTED FOR
THE NUMBER OF YEARS, TAKING COMPOUNDING INTO ACCOUNT, TO CALCULATE AVERAGE
ANNUAL TOTAL RETURN DURING THAT PERIOD.
TOTAL RETURN IS COMPUTED ACCORDING TO THE FOLLOWING FORMULA:
P(1 + T)N = ERV
WHERE P = A HYPOTHETICAL INITIAL PAYMENT OF $1,000; T = TOTAL RETURN; N = NUMBER
OF YEARS; AND ERV = THE ENDING REDEEMABLE VALUE OF A HYPOTHETICAL $1,000 PAYMENT
MADE AT THE BEGINNING OF THE PERIOD.
TOTAL RETURN IS HISTORICAL IN NATURE AND IS NOT INTENDED TO INDICATE FUTURE
PERFORMANCE. ALL TOTAL RETURN QUOTATIONS REFLECT THE DEDUCTION OF THE MAXIMUM
SALES CHARGE ("RETURN WITH MAXIMUM LOAD"), EXCEPT QUOTATIONS OF RETURN "WITHOUT
MAXIMUM LOAD," OR "AT NAV" (OR "WITHOUT CDSC") WHICH DO NOT DEDUCT SALES CHARGE.
THUS, IN THE FORMULA ABOVE, FOR RETURN WITHOUT MAXIMUM LOAD, P = THE ENTIRE
$1,000 HYPOTHETICAL INITIAL INVESTMENT AND DOES NOT REFLECT THE DEDUCTION OF ANY
SALES CHARGE; FOR RETURN WITH MAXIMUM LOAD, P = A HYPOTHETICAL INITIAL
INVESTMENT OF $1,000 LESS ANY SALES CHARGE ACTUALLY IMPOSED AT THE BEGINNING OF
THE PERIOD FOR WHICH THE PERFORMANCE IS BEING CALCULATED. CLASS I SHARES DO NOT
HAVE A SALES CHARGE.
PURCHASE AND REDEMPTION OF SHARES
---------------------------------
SHARE CERTIFICATES WILL NOT BE ISSUED UNLESS REQUESTED IN WRITING BY THE
INVESTOR. IF SHARE CERTIFICATES HAVE BEEN ISSUED, THEN THE CERTIFICATE MUST BE
DELIVERED TO THE FUND'S TRANSFER AGENT WITH ANY REDEMPTION REQUEST. THIS COULD
RESULT IN DELAYS. IF THE CERTIFICATES HAVE BEEN LOST, THE SHAREHOLDER WILL HAVE
TO PAY TO POST AN INDEMNITY BOND IN CASE THE ORIGINAL CERTIFICATES ARE LATER
PRESENTED BY ANOTHER PERSON. NO CERTIFICATES WILL BE ISSUED FOR FRACTIONAL
SHARES.
THE FUND HAS FILED A NOTICE OF ELECTION UNDER RULE 18F-1 WITH THE
COMMISSION. THE NOTICE STATES THAT THE FUND MAY HONOR REDEMPTIONS THAT, DURING
ANY 90-DAY PERIOD, EXCEED $250,000 OR 1% OF THE NEST ASSETS VALUE OF THE FUND,
WHICHEVER IS LESS, BY REDEMPTIONS-IN-KIND (DISTRIBUTIONS OF A PRO RATA SHARE OF
THE PORTFOLIO SECURITIES, RATHER THAN CASH.)
SEE THE PROSPECTUS FOR MORE DETAILS ON PURCHASES AND REDEMPTIONS.
ADVERTISING
-----------
THE FUND OR ITS AFFILIATES MAY PROVIDE INFORMATION SUCH AS, BUT NOT LIMITED
TO, THE ECONOMY, INVESTMENT CLIMATE, INVESTMENT PRINCIPLES, SOCIOLOGICAL
CONDITIONS AND POLITICAL AMBIANCE. DISCUSSION MAY INCLUDE HYPOTHETICAL SCENARIOS
OR LISTS OF RELEVANT FACTORS DESIGNED TO AID THE INVESTOR IN DETERMINING WHETHER
THE FUND IS COMPATIBLE WITH THE INVESTOR'S GOALS. THE FUND MAY LIST ITS HOLDINGS
OR GIVE EXAMPLES OF SECURITIES THAT MAY HAVE BEEN CONSIDERED FOR INCLUSION IN
THE FUND, WHETHER HELD OR NOT.
THE FUND OR ITS AFFILIATES MAY SUPPLY COMPARATIVE PERFORMANCE DATA AND
RANKINGS FROM INDEPENDENT SOURCES SUCH AS DONOGHUE'S MONEY FUND REPORT, BANK
RATE MONITOR, MONEY, FORBES, LIPPER ANALYTICAL SERVICES, INC., CDA INVESTMENT
TECHNOLOGIES, INC., WIESENBERGER INVESTMENT COMPANIES SERVICE, MUTUAL FUND
VALUES MORNINGSTAR RATINGS, MUTUAL FUND FORECASTER, BARRON'S, NELSON'S AND THE
WALL STREET JOURNAL. THE FUND MAY ALSO CITE TO ANY SOURCE, WHETHER IN PRINT OR
ON-LINE, SUCH AS BLOOMBERG, IN ORDER TO ACKNOWLEDGE ORIGIN OF INFORMATION, AND
MAY PROVIDE BIOGRAPHICAL INFORMATION ON, OR QUOTE, PORTFOLIO MANAGERS OR FUND
OFFICERS. THE FUND MAY COMPARE ITSELF OR ITS PORTFOLIO HOLDINGS TO OTHER
INVESTMENTS, WHETHER OR NOT ISSUED OR REGULATED BY THE SECURITIES INDUSTRY,
INCLUDING, BUT NOT LIMITED TO, CERTIFICATES OF DEPOSIT AND TREASURY NOTES.
CALVERT GROUP IS THE NATION'S LEADING FAMILY OF SOCIALLY RESPONSIBLE MUTUAL
FUNDS, BOTH IN TERMS OF SOCIALLY RESPONSIBLE MUTUAL FUND ASSETS UNDER
MANAGEMENT, AND NUMBER OF SOCIALLY RESPONSIBLE MUTUAL FUND PORTFOLIOS OFFERED
(SOURCE: SOCIAL INVESTMENT FORUM, DECEMBER 31, 1999). CALVERT GROUP WAS ALSO THE
FIRST TO OFFER A FAMILY OF SOCIALLY RESPONSIBLE MUTUAL FUND PORTFOLIOS.
DIRECTORS AND OFFICERS
----------------------
[/R]
THE FUND'S BOARD OF DIRECTORS SUPERVISES THE FUND'S ACTIVITIES AND REVIEWS
ITS CONTRACTS WITH COMPANIES THAT PROVIDE IT WITH SERVICES. BUSINESS
INFORMATION IS PROVIDED BELOW ABOUT THE FUND'S DIRECTORS AND OFFICERS.
PRINCIPAL
OCCUPATION(S) DURING
NAME, ADDRESS & DATE OF BIRTH POSITION WITH FUND LAST 5 YEARS
REBECCA ADAMSON DIRECTOR PRESIDENT OF THE
DOB: 9/10/47 NATIONAL NON-PROFIT,
FIRST NATIONS DEVELOPMENT INSTITUTE FIRST NATIONS FINANCIAL
ADDRESS: 11917 MAIN STREET, PROJECT.
FREDERICKSBURG, VA. 22408
RICHARD L. BAIRD DIRECTOR EXECUTIVE VICE PRESIDENT
DOB: 5/9/48 OF THE FAMILY HEALTH COUNCIL, A
FAMILY HEALTH COUNCIL NON-PROFIT CORPORATION
ADDRESS: 211 OVERLOOK DRIVE THAT PROVIDES FAMILY PLANNING SERVICES,
PITTSBURGH, PA. 15216 NUTRITION, MATERNAL/CHILD HEALTH
CARE, AND VARIOUS HEALTH SCREENING
SERVICES.
JOY V. JONES, ESQ. DIRECTOR ATTORNEY AND ENTERTAINMENT
DOB: 7/2/50 MANAGER IN NEW YORK CITY.
ADDRESS: 175 WEST 12TH STREET
NEW YORK, NEW YORK 10011
* BARBARA J. KRUMSIEK DIRECTOR PRESIDENT, CHIEF EXECUTIVE OFFICER
DOB: 08/09/52 AND VICE CHAIRMAN OF CALVERT
GROUP, LTD. PRIOR TO JOINING
CALVERT GROUP, MS. KRUMSIEK
SERVED AS A MANAGING DIRECTOR OF
ALLIANCE FUND DISTRIBUTORS, INC.
TERRENCE J. MOLLNER, ED.D DIRECTOR FOUNDER, CHAIRPERSON, AND
DOB: 12/13/44 PRESIDENT OF TRUSTEESHIP
ADDRESS: 15 EDWARDS SQUARE INSTITUTE, INC., A DIVERSE
NORTHAMPTON, MASSACHUSETTS 01060. FOUNDATION KNOWN PRINCIPALLY
FOR ITS CONSULTATION TO CORPORATIONS
CONVERTING TO COOPERATIVE
EMPLOYEE-OWNERSHIP.
SYDNEY AMARA MORRIS DIRECTOR A MINISTER OF THE UNITARIAN-
DOB: 9/7/49. UNIVERSALIST FELLOWSHIP.
ADDRESS: 2915 WEST 12TH
VANCOUVER, BRITISH COLUMBIA, CANADA V6K2R2.
* CHARLES T. NASON, DIRECTOR CHAIRMAN, PRESIDENT AND CHIEF
DOB: 4/22/46 EXECUTIVE OFFICER OF THE ACACIA
ADDRESS: 7315 WISCONSIN AVENUE GROUP, A WASHINGTON, D.C.-BASED
BETHESDA, MARYLAND 20814 FINANCIAL SERVICES ORGANIZATION,
INCLUDING ACACIA MUTUAL LIFE
INSURANCE COMPANY AND CALVERT
GROUP, LTD.
* D. WAYNE SILBY DIRECTOR PRESIDENT OF CALVERT SOCIAL
DOB: 7/20/48. INVESTMENT FUND. MR. SILBY IS ALSO
ADDRESS: 1715 18TH STREET, N.W., EXECUTIVE CHAIRMAN OF GROUP
WASHINGTON, D.C. 20009. SERVE, INC., AN INTERNET COMPANY
FOCUSED ON COMMUNITY BUILDING
COLLABORATIVE TOOLS, AND AN OFFICER,
DIRECTOR AND SHAREHOLDER OF SILBY,
GUFFEY & COMPANY, INC., WHICH
SERVES AS GENERAL PARTNER OF
CALVERT SOCIAL VENTURE PARTNERS
("CSVP"). CSVP IS A VENTURE
CAPITAL FIRM INVESTING IN SOCIALLY
RESPONSIBLE SMALL COMPANIES.
RENO J. MARTINI OFFICER SENIOR VICE PRESIDENT OF CALVERT
DOB: 1/13/50 GROUP, LTD., SENIOR VICE PRESIDENT
AND CHIEF INVESTMENT OFFICER OF
CALVERT ASSET MANAGEMENT
COMPANY, INC., AND DIRECTOR AND
PRESIDENT OF CALVERT-SLOAN
ADVISERS, L.L.C.
RONALD M. WOLFSHEIMER, CPA, OFFICER SENIOR VICE PRESIDENT AND CHIEF
DOB: 7/24/52 FINANCIAL OFFICER OF
CALVERT GROUP, LTD.
WILLIAM M. TARTIKOFF, ESQ. OFFICER SENIOR VICE PRESIDENT, SECRETARY,
DOB: 8/12/47. AND GENERAL COUNSEL OF CALVERT
GROUP, LTD.
SUSAN WALKER BENDER, ESQ. OFFICER ASSOCIATE GENERAL COUNSEL OF
DOB: 1/29/59. CALVERT GROUP, LTD.
IVY WAFFORD DUKE, ESQ. OFFICER ASSOCIATE GENERAL COUNSEL OF
DOB: 09/07/68 CALVERT GROUP, LTD. MS. DUKE WAS
AN ASSOCIATE IN THE INVESTMENT
MANAGEMENT GROUP OF THE
BUSINESS AND FINANCE DEPARTMENT
AT DRINKER BIDDLE & REATH.
VICTOR FRYE, ESQ. OFFICER COUNSEL AND COMPLIANCE OFFICER
DOB: 10/15/58 OF CALVERT GROUP, LTD. PRIOR TO
WORKING AT CALVERT GROUP, MR.
FRYE WAS COUNSEL AND MANAGER OF
THE COMPLIANCE DEPARTMENT AT
THE ADVISORS GROUP.
JENNIFER STREAKS, ESQ. OFFICER ASSISTANT GENERAL COUNSEL OF
DOB: 08/02/71 CALVERT GROUP, LTD. PRIOR TO
WORKING AT CALVERT GROUP, MS.
STREAKS WAS A REGULATORY ANALYST
IN THE MARKET REGULATION
DEPARTMENT OF THE NATIONAL
ASSOCIATION OF SECURITIES DEALERS.
MICHAEL V. YUHAS JR., CPA OFFFICER DIRECTOR OF FUND ADMINISTRATION
DOB: 08/04/61 OF CALVERT GROUP, LTD.
[/R]
EACH OF THE OFFICERS IS ALSO AN OFFICER OF CALVERT-SLOAN ADVISERS, L.L.C.,
EACH OF THE SUBSIDIARIES OF CALVERT GROUP, LTD., AND EACH OF THE OTHER
INVESTMENT COMPANIES IN THE CALVERT GROUP OF FUNDS.
THE ADDRESS OF DIRECTORS AND OFFICERS, UNLESS OTHERWISE NOTED, IS 4550
MONTGOMERY AVENUE, SUITE 1000N, BETHESDA, MARYLAND 20814. DIRECTORS MARKED WITH
AN *, ABOVE, ARE "INTERESTED PERSONS" OF THE FUND, UNDER THE INVESTMENT COMPANY
ACT OF 1940.
THE AUDIT COMMITTEE OF THE BOARD IS COMPOSED OF THOSE DIRECTORS WHO ARE
NOT INTERESTED PERSONS.
DIRECTORS OF THE FUND NOT AFFILIATED WITH THE FUND'S ADVISOR MAY ELECT TO
DEFER RECEIPT OF ALL OR A PERCENTAGE OF THEIR FEES AND INVEST THEM IN ANY FUND
IN THE CALVERT FAMILY OF FUNDS THROUGH THE DIRECTORS' DEFERRED COMPENSATION
PLAN. DEFERRAL OF THE FEES IS DESIGNED TO MAINTAIN THE PARTIES IN THE SAME
POSITION AS IF THE FEES WERE PAID ON A CURRENT BASIS. MANAGEMENT BELIEVES THIS
WILL HAVE A NEGLIGIBLE EFFECT ON THE FUND'S ASSETS, LIABILITIES, NET ASSETS, AND
NET INCOME PER SHARE.
INVESTMENT ADVISOR AND SUBADVISOR
---------------------------------
THE FUND'S INVESTMENT ADVISOR IS CALVERT ASSET MANAGEMENT COMPANY, INC.,
4550 MONTGOMERY AVENUE, 1000N, BETHESDA, MARYLAND 20814, A SUBSIDIARY OF CALVERT
GROUP LTD., WHICH IS A SUBSIDIARY OF ACACIA LIFE INSURANCE COMPANY OF
WASHINGTON, D.C. ("ACACIA"). ACACIA IS A SUBSIDIARY OF AMERITAS ACACIA MUTUAL
HOLDING COMPANY. UNDER THE ADVISORY CONTRACT, THE ADVISOR PROVIDES INVESTMENT
ADVICE TO THE FUND AND OVERSEES ITS DAY-TO-DAY OPERATIONS, SUBJECT TO DIRECTION
AND CONTROL BY THE FUND'S BOARD OF DIRECTORS. THE ADVISOR PROVIDES THE FUND WITH
INVESTMENT SUPERVISION AND MANAGEMENT, AND OFFICE SPACE; FURNISHES EXECUTIVE AND
OTHER PERSONNEL TO THE FUND; AND PAYS THE SALARIES AND FEES OF ALL DIRECTORS WHO
ARE EMPLOYEES OF THE ADVISOR OR ITS AFFILIATES. THE FUND PAYS ALL OTHER
ADMINISTRATIVE AND OPERATING EXPENSES, INCLUDING: CUSTODIAL, REGISTRAR, DIVIDEND
DISBURSING AND TRANSFER AGENCY FEES; ADMINISTRATIVE SERVICE FEES; FEDERAL AND
STATE SECURITIES REGISTRATION FEES; SALARIES, FEES AND EXPENSES OF DIRECTORS,
EXECUTIVE OFFICERS AND EMPLOYEES OF THE FUND WHO ARE NOT EMPLOYEES OF THE
ADVISOR OR OF ITS AFFILIATES; INSURANCE PREMIUMS; TRADE ASSOCIATION DUES; LEGAL
AND AUDIT FEES; INTEREST, TAXES AND OTHER BUSINESS FEES; EXPENSES OF PRINTING
AND MAILING REPORTS, NOTICES, PROSPECTUSES, AND PROXY MATERIAL TO SHAREHOLDERS;
ANNUAL SHAREHOLDERS' MEETING EXPENSES; AND BROKERAGE COMMISSIONS AND OTHER COSTS
ASSOCIATED WITH THE PURCHASE AND SALE OF PORTFOLIO SECURITIES.
THE ADVISOR HAS AGREED TO LIMIT ANNUAL FUND OPERATING EXPENSES (NET OF ANY
EXPENSE OFFSET ARRANGEMENTS) THROUGH SEPTEMBER 30, 2001. THE CONTRACTUAL
EXPENSE CAP IS 0.75% FOR CLASS A, 1.75% FOR CLASS B, 1.75% FOR CLASS C AND
0.375% FOR CLASS I. FOR THE PURPOSES OF THIS EXPENSE LIMIT, OPERATING EXPENSES
DO NOT INCLUDE INTEREST EXPENSE, BROKERAGE COMMISSIONS, EXTRAORDINARY EXPENSES,
TAXES AND CAPITAL ITEMS. THE FUND HAS AN OFFSET ARRANGEMENT WITH THE CUSTODIAN
BANK WHEREBY THE CUSTODIAN AND THE TRANSFER AGENT FEES MAY BE PAID INDIRECTLY BY
CREDITS ON THE FUND'S UNINVESTED CASH BALANCES. THESE CREDITS ARE USED TO
REDUCE THE FUND'S EXPENSES.
FOR ITS SERVICES, THE ADVISOR RECEIVES AN ANNUAL FEE, PAYABLE MONTHLY, OF
0.225% OF THE FUND'S AVERAGE DAILY NET ASSETS.
SUBADVISOR
WORLD ASSET MANAGEMENT, LLC ("SUBADVISOR") IS CONTROLLED BY COMERICA BANK ,
A PUBLICLY HELD COMPANY. THE SUBADVISOR RECEIVES A SUBADVISORY FEE, PAID BY THE
ADVISOR. THE SUBADVISORY FEE, PAYABLE MONTHLY, IS 0.07% OF THE FUND'S FIRST $50
MILLION AVERAGE ANNUAL DAILY NET ASSETS MANAGED BY THE SUBADVISOR, 0.05% OF THE
NEXT $50 MILLION, AND 0.03% OF SUCH ASSETS OVER $100 MILLION.
THE FUND HAS RECEIVED AN EXEMPTIVE ORDER TO PERMIT THE FUND AND THE ADVISOR
TO ENTER INTO AND MATERIALLY AMEND THE INVESTMENT SUBADVISORY AGREEMENT WITHOUT
SHAREHOLDER APPROVAL. WITHIN 90 DAYS OF THE HIRING OF ANY SUBADVISOR OR THE
IMPLEMENTATION OF ANY PROPOSED MATERIAL CHANGED IN THE INVESTMENT SUBADVISORY
AGREEMENT, THE FUND WILL FURNISH ITS SHAREHOLDERS INFORMATION ABOUT THE NEW
SUBADVISOR OR INVESTMENT SUBADVISORY AGREEMENT THAT WOULD BE INCLUDED IN A PROXY
STATEMENT. SUCH INFORMATION WILL INCLUDE ANY CHANGE IN SUCH DISCLOSURE CAUSED BY
THE ADDITION OF A NEW SUBADVISOR OR ANY PROPOSED MATERIAL CHANGE IN THE
INVESTMENT SUBADVISORY AGREEMENT OF THE FUND. THE FUND WILL MEET THIS CONDITION
BY PROVIDING SHAREHOLDERS, WITHIN 90 DAYS OF THE HIRING OF THE SUBADVISOR OR
IMPLEMENTATION OF ANY MATERIAL CHANGE TO THE TERMS OF AN INVESTMENT SUBADVISORY
AGREEMENT, WITH AN INFORMATION STATEMENT TO THIS EFFECT.
<PAGE>
------
ADMINISTRATIVE SERVICES AGENT
-----------------------------
CALVERT ADMINISTRATIVE SERVICES COMPANY ("CASC"), AN AFFILIATE OF THE
ADVISOR, HAS BEEN RETAINED BY THE FUND TO PROVIDE CERTAIN ADMINISTRATIVE
SERVICES NECESSARY TO THE CONDUCT OF ITS AFFAIRS, INCLUDING THE PREPARATION OF
REGULATORY FILINGS AND SHAREHOLDER REPORTS. FOR PROVIDING SUCH SERVICES, CASC
RECEIVES AN ANNUAL ADMINISTRATIVE SERVICE FEE PAYABLE MONTHLY (AS A PERCENTAGE
OF NET ASSETS) AS FOLLOWS:
CLASS A, B, AND C CLASS I
0.225% 0.10%
ADMINISTRATIVE SERVICES FEE ARE ALLOCATED AMONG CLASSES AS A CLASS-LEVEL
EXPENSE BASED ON NET ASSETS.
METHOD OF DISTRIBUTION
----------------------
CALVERT DISTRIBUTORS, INC. ("CDI") IS THE PRINCIPAL UNDERWRITER AND
DISTRIBUTOR FOR THE FUND. CDI IS AN AFFILIATE OF THE FUND'S ADVISOR. UNDER THE
TERMS OF ITS UNDERWRITING AGREEMENT WITH THE FUNDS, CDI MARKETS AND DISTRIBUTES
THE FUND'S SHARES AND IS RESPONSIBLE FOR PREPARING ADVERTISING AND SALES
LITERATURE, AND PRINTING AND MAILING PROSPECTUSES TO PROSPECTIVE INVESTORS.
PURSUANT TO RULE 12B-1 UNDER THE INVESTMENT COMPANY ACT OF 1940, THE FUND
HAS ADOPTED DISTRIBUTION PLANS (THE "PLANS") WHICH PERMITS THE FUND TO PAY
CERTAIN EXPENSES ASSOCIATED WITH THE DISTRIBUTION OF ITS SHARES. SUCH EXPENSES
MAY NOT EXCEED, ON AN ANNUAL BASIS, 0.25% OF THE FUND'S CLASS A AVERAGE DAILY
NET ASSETS. EXPENSES UNDER THE FUND'S CLASS B AND CLASS C PLANS MAY NOT EXCEED,
ON AN ANNUAL BASIS, 1.00% OF THE AVERAGE DAILY NET ASSETS OF CLASS B AND CLASS
C, RESPECTIVELY. CLASS I HAS NO DISTRIBUTION PLAN. CLASS A DISTRIBUTION PLANS
REIMBURSE CDI ONLY FOR EXPENSES IT INCURS, WHILE THE CLASS B AND C DISTRIBUTION
PLANS COMPENSATE CDI AT A SET RATE REGARDLESS OF CDI'S EXPENSES. DISTRIBUTION
PLAN EXPENSES MAY BE SPENT FOR ADVERTISING, PRINTING AND MAILING OF PROSPECTUSES
TO PERSONS WHO ARE NOT ALREADY FUND SHAREHOLDERS, COMPENSATION TO
BROKER/DEALERS, UNDERWRITERS, AND SALESPERSONS, AND, FOR CLASS B, INTEREST AND
FINANCE CHARGES.
THE FUND'S DISTRIBUTION PLANS WERE APPROVED BY THE BOARD OF DIRECTORS,
INCLUDING THE DIRECTORS WHO ARE NOT "INTERESTED PERSONS" OF THE FUND (AS THAT
TERM IS DEFINED IN THE INVESTMENT COMPANY ACT OF 1940) AND WHO HAVE NO DIRECT OR
INDIRECT FINANCIAL INTEREST IN THE OPERATION OF THE PLANS OR IN ANY AGREEMENTS
RELATED TO THE PLANS. THE SELECTION AND NOMINATION OF THE DIRECTORS WHO ARE NOT
INTERESTED PERSONS OF THE FUND IS COMMITTED TO THE DISCRETION OF SUCH
DISINTERESTED DIRECTORS. IN ESTABLISHING THE PLANS, THE DIRECTORS CONSIDERED
VARIOUS FACTORS INCLUDING THE AMOUNT OF THE DISTRIBUTION EXPENSES. THE DIRECTORS
DETERMINED THAT THERE IS A REASONABLE LIKELIHOOD THAT THE PLANS WILL BENEFIT THE
FUND AND ITS SHAREHOLDERS, INCLUDING ECONOMIES OF SCALE AT HIGHER ASSET LEVELS,
BETTER INVESTMENT OPPORTUNITIES AND MORE FLEXIBILITY IN MANAGING A GROWING
PORTFOLIO.
THE PLANS MAY BE TERMINATED BY VOTE OF A MAJORITY OF THE NON-INTERESTED
DIRECTORS WHO HAVE NO DIRECT OR INDIRECT FINANCIAL INTEREST IN THE PLANS, OR BY
VOTE OF A MAJORITY OF THE OUTSTANDING SHARES OF THE FUND. IF THE FUND SHOULD
EVER SWITCH TO A NEW PRINCIPAL UNDERWRITER WITHOUT TERMINATING THE CLASS B PLAN,
THE FEE WOULD BE PRORATED BETWEEN CDI AND THE NEW PRINCIPAL UNDERWRITER. ANY
CHANGE IN THE PLANS THAT WOULD MATERIALLY INCREASE THE DISTRIBUTION COST TO A
CLASS REQUIRES APPROVAL OF THE SHAREHOLDERS OF THE AFFECTED CLASS; OTHERWISE,
THE PLANS MAY BE AMENDED BY THE DIRECTORS, INCLUDING A MAJORITY OF THE
NON-INTERESTED DIRECTORS AS DESCRIBED ABOVE. THE PLANS WILL CONTINUE IN EFFECT
FOR SUCCESSIVE ONE-YEAR TERMS PROVIDED THAT SUCH CONTINUANCE IS SPECIFICALLY
APPROVED BY (I) THE VOTE OF A MAJORITY OF THE DIRECTORS WHO ARE NOT PARTIES TO
THE PLANS OR INTERESTED PERSONS OF ANY SUCH PARTY AND WHO HAVE NO DIRECT OR
INDIRECT FINANCIAL INTEREST IN THE PLANS, AND (II) THE VOTE OF A MAJORITY OF THE
ENTIRE BOARD OF DIRECTORS.
APART FROM THE PLANS, THE ADVISOR AND CDI, AT THEIR OWN EXPENSE, MAY INCUR
COSTS AND PAY EXPENSES ASSOCIATED WITH THE DISTRIBUTION OF SHARES OF THE FUND.
THE ADVISOR AND/OR CDI MAY PAY CERTAIN FIRMS COMPENSATION BASED ON SALES OF FUND
SHARES OR ON ASSETS HELD IN THOSE FIRM'S ACCOUNTS FOR THEIR MARKETING AND
DISTRIBUTION OF THE FUND SHARES, ABOVE THE USUAL SALES CHARGES AND SERVICE FEES.
CDI MAKES A CONTINUOUS OFFERING OF THE FUND'S SECURITIES ON A "BEST
EFFORTS" BASIS. UNDER THE TERMS OF THE AGREEMENT, CDI IS ENTITLED TO RECEIVE,
PURSUANT TO THE DISTRIBUTION PLANS, A DISTRIBUTION FEE AND A SERVICE FEE FROM
THE FUND BASED ON THE AVERAGE DAILY NET ASSETS OF EACH CLASS. THESE FEES ARE
PAID PURSUANT TO THE FUND'S DISTRIBUTION PLAN.
<PAGE>
CLASS A SHARES ARE OFFERED AT NET ASSET VALUE PLUS A FRONT-END SALES CHARGE AS
FOLLOWS:
AS A % OF AS A % OF ALLOWED TO
AMOUNT OF OFFERING NET AMOUNT BROKERS AS A % OF
INVESTMENT PRICE INVESTED OFFERING PRICE
LESS THAN $50,000 4.75% 4.99% 4.00%
$50,000 BUT LESS THAN $100,000 3.75% 3.90% 3.00%
$100,000 BUT LESS THAN $250,000 2.75% 2.83% 2.25%
$250,000 BUT LESS THAN $500,000 1.75% 1.78% 1.25%
$500,000 BUT LESS THAN $1,000,000 1.00% 1.01% 0.80%
$1,000,000 AND OVER 0.00% 0.00% 0.00%
CDI RECEIVES ANY FRONT-END SALES CHARGE OR CDSC PAID. A PORTION OF THE
FRONT-END SALES CHARGE MAY BE REALLOWED TO DEALERS.
FUND DIRECTORS AND CERTAIN OTHER AFFILIATED PERSONS OF THE FUND ARE EXEMPT
FROM THE SALES CHARGE SINCE THE DISTRIBUTION COSTS ARE MINIMAL TO PERSONS
ALREADY FAMILIAR WITH THE FUND. OTHER GROUPS (E.G., GROUP RETIREMENT PLANS) ARE
EXEMPT DUE TO ECONOMIES OF SCALE IN DISTRIBUTION. SEE EXHIBIT A TO THE
PROSPECTUS.
TRANSFER AND SHAREHOLDER SERVICING AGENTS
-----------------------------------------
NATIONAL FINANCIAL DATA SERVICES, INC. ("NFDS"), A SUBSIDIARY OF STATE STREET
BANK & TRUST, HAS BEEN RETAINED BY THE FUND TO ACT AS TRANSFER AGENT AND
DIVIDEND DISBURSING AGENT. THESE RESPONSIBILITIES INCLUDE: RESPONDING TO CERTAIN
SHAREHOLDER INQUIRIES AND INSTRUCTIONS, CREDITING AND DEBITING SHAREHOLDER
ACCOUNTS FOR PURCHASES AND REDEMPTIONS OF FUND SHARES AND CONFIRMING SUCH
TRANSACTIONS, AND DAILY UPDATING OF SHAREHOLDER ACCOUNTS TO REFLECT DECLARATION
AND PAYMENT OF DIVIDENDS.
CALVERT SHAREHOLDER SERVICES, INC. ("CSSI"), A SUBSIDIARY OF CALVERT GROUP,
LTD. AND ACACIA, HAS BEEN RETAINED BY THE FUND TO ACT AS SHAREHOLDER SERVICING
AGENT. SHAREHOLDER SERVICING RESPONSIBILITIES INCLUDE RESPONDING TO SHAREHOLDER
INQUIRIES AND INSTRUCTIONS CONCERNING THEIR ACCOUNTS, ENTERING ANY TELEPHONED
PURCHASES OR REDEMPTIONS INTO THE NFDS SYSTEM, MAINTENANCE OF BROKER-DEALER
DATA, AND PREPARING AND DISTRIBUTING STATEMENTS TO SHAREHOLDERS REGARDING THEIR
ACCOUNTS.
FOR THESE SERVICES, NFDS AND CSSI RECEIVE A FEE OF $6.00 PER SHAREHOLDER
ACCOUNT AND $0.65 PER TRANSACTION.
PORTFOLIO TRANSACTIONS
----------------------
PORTFOLIO TRANSACTIONS ARE UNDERTAKEN ON THE BASIS OF THEIR DESIRABILITY
FROM AN INVESTMENT STANDPOINT. THE FUND'S ADVISOR AND SUBADVISORS MAKE
INVESTMENT DECISIONS AND THE CHOICE OF BROKERS AND DEALERS UNDER THE DIRECTION
AND SUPERVISION OF THE FUND'S BOARD OF DIRECTORS.
BROKER-DEALERS WHO EXECUTE PORTFOLIO TRANSACTIONS ON BEHALF OF THE FUND ARE
SELECTED ON THE BASIS OF THEIR EXECUTION CAPABILITY AND TRADING EXPERTISE
CONSIDERING, AMONG OTHER FACTORS, THE OVERALL REASONABLENESS OF THE BROKERAGE
COMMISSIONS, CURRENT MARKET CONDITIONS, SIZE AND TIMING OF THE ORDER, DIFFICULTY
OF EXECUTION, PER SHARE PRICE, MARKET FAMILIARITY, RELIABILITY, INTEGRITY, AND
FINANCIAL CONDITION, SUBJECT TO THE ADVISOR/SUBADVISOR OBLIGATION TO SEEK BEST
EXECUTION. THE ADVISOR OR SUBADVISOR MAY ALSO CONSIDER SALES OF FUND SHARES AS A
FACTOR IN THE SELECTION OF BROKERS, AGAIN, SUBJECT TO BEST EXECUTION (I.E., THE
FUND WILL NOT "PAY UP" FOR SUCH TRANSACTIONS.)
WHILE THE FUND'S ADVISOR AND SUBADVISOR(S) SELECT BROKERS PRIMARILY ON THE
BASIS OF BEST EXECUTION, IN SOME CASES THEY MAY DIRECT TRANSACTIONS TO BROKERS
BASED ON THE QUALITY AND AMOUNT OF THE RESEARCH AND RESEARCH-RELATED SERVICES
WHICH THE BROKERS PROVIDE TO THEM. THESE RESEARCH SERVICES INCLUDE ADVICE,
EITHER DIRECTLY OR THROUGH PUBLICATIONS OR WRITINGS, AS TO THE VALUE OF
SECURITIES, THE ADVISABILITY OF INVESTING IN, PURCHASING OR SELLING SECURITIES,
AND THE AVAILABILITY OF SECURITIES OR PURCHASERS OR SELLERS OF SECURITIES;
FURNISHING OF ANALYSES AND REPORTS CONCERNING ISSUERS, SECURITIES OR INDUSTRIES;
PROVIDING INFORMATION ON ECONOMIC FACTORS AND TRENDS; ASSISTING IN DETERMINING
PORTFOLIO STRATEGY; PROVIDING COMPUTER SOFTWARE USED IN SECURITY ANALYSES;
PROVIDING PORTFOLIO PERFORMANCE EVALUATION AND TECHNICAL MARKET ANALYSES; AND
PROVIDING OTHER SERVICES RELEVANT TO THE INVESTMENT DECISION MAKING PROCESS.
OTHER SUCH SERVICES ARE DESIGNED PRIMARILY TO ASSIST THE ADVISOR IN MONITORING
THE INVESTMENT ACTIVITIES OF THE SUBADVISOR(S) OF THE FUND. SUCH SERVICES
INCLUDE PORTFOLIO ATTRIBUTION SYSTEMS, RETURN-BASED STYLE ANALYSIS, AND
TRADE-EXECUTION ANALYSIS.
IF, IN THE JUDGMENT OF THE ADVISOR OR SUBADVISOR(S), THE FUND OR OTHER ACCOUNTS
MANAGED BY THEM WILL BE BENEFITED BY SUPPLEMENTAL RESEARCH SERVICES, THEY ARE
AUTHORIZED TO PAY BROKERAGE COMMISSIONS TO A BROKER FURNISHING SUCH SERVICES
WHICH ARE IN EXCESS OF COMMISSIONS WHICH ANOTHER BROKER MAY HAVE CHARGED FOR
EFFECTING THE SAME TRANSACTION. IT IS THE POLICY OF THE ADVISOR THAT SUCH
RESEARCH SERVICES WILL BE USED FOR THE BENEFIT OF THE FUND AS WELL AS OTHER
CALVERT GROUP FUNDS AND MANAGED ACCOUNTS.
PERSONAL SECURITIES TRANSACTIONS
--------------------------------
THE FUND, ITS ADVISORS, AND PRINCIPAL UNDERWRITER HAVE ADOPTED A CODE OF
ETHICS PURSUANT TO RULE 17J-1 OF THE INVESTMENT COMPANY ACT OF 1940. THE CODE OF
ETHICS IS DESIGNED TO PROTECT THE PUBLIC FROM ABUSIVE TRADING PRACTICES AND TO
MAINTAIN ETHICAL STANDARDS FOR ACCESS PERSONS AS DEFINED IN THE RULE WHEN
DEALING WITH THE PUBLIC. THE CODE OF ETHICS PERMITS THE FUND'S INVESTMENT
PERSONNEL TO INVEST IN SECURITIES THAT MAYBE PURCHASED OR HELD BY THE FUND. THE
CODE OF ETHICS CONTAINS CERTAIN CONDITIONS SUCH AS PRECLEARANCE AND RESTRICTIONS
ON USE OF MATERIAL INFORMATION.
INDEPENDENT ACCOUNTANT AND CUSTODIANS
-------------------------------------
PRICEWATERHOUSECOOPERS LLP, HAS BEEN SELECTED BY THE BOARD OF DIRECTORS TO SERVE
AS INDEPENDENT ACCOUNTANTS FOR FISCAL YEAR 2000. STATE STREET BANK & TRUST
COMPANY, N.A., 225 FRANKLIN STREET, BOSTON, MA 02110, SERVES AS CUSTODIAN OF THE
FUND'S INVESTMENTS. ALLFIRST FINANCIAL, INC., 25 SOUTH CHARLES STREET,
BALTIMORE, MARYLAND 21203 ALSO SERVES AS CUSTODIAN OF CERTAIN OF THE FUND'S CASH
ASSETS. THE CUSTODIANS HAVE NO PART IN DECIDING THE FUND'S INVESTMENT POLICIES
OR THE CHOICE OF SECURITIES THAT ARE TO BE PURCHASED OR SOLD FOR THE FUND.
FINANCIAL STATEMENTS
--------------------
THE FUND'S AUDITED FINANCIAL STATEMENTS ARE INCLUDED AT SCHEDULE A OF THIS
STATEMENT OF ADDITIONAL INFORMATION.
GENERAL INFORMATION
-------------------
THE FUND IS A SERIES OF CALVERT SOCIAL INDEX SERIES, INC., AN OPEN-END
MANAGEMENT INVESTMENT COMPANY ORGANIZED AS A MARYLAND CORPORATION ON APRIL 7,
2000. THE FUND IS DIVERSIFIED.
EACH SHARE REPRESENTS AN EQUAL PROPORTIONATE INTEREST WITH EACH OTHER SHARE
AND IS ENTITLED TO SUCH DIVIDENDS AND DISTRIBUTIONS OUT OF THE INCOME BELONGING
TO SUCH CLASS AS DECLARED BY THE BOARD. THE FUND OFFERS FOUR SEPARATE CLASSES OF
SHARES: CLASS A, CLASS B, CLASS C, AND CLASS I. EACH CLASS REPRESENTS INTERESTS
IN THE SAME PORTFOLIO OF INVESTMENTS BUT, AS FURTHER DESCRIBED IN THE
PROSPECTUS, EACH CLASS IS SUBJECT TO DIFFERING SALES CHARGES AND EXPENSES, WHICH
DIFFERENCES WILL RESULT IN DIFFERING NET ASSET VALUES AND DISTRIBUTIONS. UPON
ANY LIQUIDATION OF THE FUND, SHAREHOLDERS OF EACH CLASS ARE ENTITLED TO SHARE
PRO RATA IN THE NET ASSETS BELONGING TO THAT SERIES AVAILABLE FOR DISTRIBUTION.
THE FUND IS NOT REQUIRED TO HOLD ANNUAL SHAREHOLDER MEETINGS, BUT SPECIAL
MEETINGS MAY BE CALLED FOR CERTAIN PURPOSES SUCH AS ELECTING DIRECTORS, CHANGING
FUNDAMENTAL POLICIES, OR APPROVING A MANAGEMENT CONTRACT. AS A SHAREHOLDER, YOU
RECEIVE ONE VOTE FOR EACH SHARE OF A FUND YOU OWN. MATTERS AFFECTING CLASSES
DIFFERENTLY, SUCH AS DISTRIBUTION PLANS, WILL BE VOTED ON SEPARATELY BY CLASS.
<PAGE>
APPENDIX
--------
CORPORATE BOND AND COMMERCIAL PAPER RATINGS
CORPORATE BONDS:
DESCRIPTION OF MOODY'S INVESTORS SERVICE INC.'S/STANDARD & POOR'S BOND RATINGS:
AAA/AAA: BEST QUALITY. THESE BONDS CARRY THE SMALLEST DEGREE OF INVESTMENT
RISK AND ARE GENERALLY REFERRED TO AS "GILT EDGE." INTEREST PAYMENTS ARE
PROTECTED BY A LARGE OR BY AN EXCEPTIONALLY STABLE MARGIN AND PRINCIPAL IS
SECURE. THIS RATING INDICATES AN EXTREMELY STRONG CAPACITY TO PAY PRINCIPAL AND
INTEREST.
AA/AA: BONDS RATED AA ALSO QUALIFY AS HIGH-QUALITY DEBT OBLIGATIONS.
CAPACITY TO PAY PRINCIPAL AND INTEREST IS VERY STRONG, AND IN THE MAJORITY OF
INSTANCES THEY DIFFER FROM AAA ISSUES ONLY IN SMALL DEGREE. THEY ARE RATED LOWER
THAN THE BEST BONDS BECAUSE MARGINS OF PROTECTION MAY NOT BE AS LARGE AS IN AAA
SECURITIES, FLUCTUATION OF PROTECTIVE ELEMENTS MAY BE OF GREATER AMPLITUDE, OR
THERE MAY BE OTHER ELEMENTS PRESENT WHICH MAKE LONG-TERM RISKS APPEAR SOMEWHAT
LARGER THAN IN AAA SECURITIES.
A/A: UPPER-MEDIUM GRADE OBLIGATIONS. FACTORS GIVING SECURITY TO PRINCIPAL
AND INTEREST ARE CONSIDERED ADEQUATE, BUT ELEMENTS MAY BE PRESENT WHICH MAKE THE
BOND SOMEWHAT MORE SUSCEPTIBLE TO THE ADVERSE EFFECTS OF CIRCUMSTANCES AND
ECONOMIC CONDITIONS.
BAA/BBB: MEDIUM GRADE OBLIGATIONS; ADEQUATE CAPACITY TO PAY PRINCIPAL AND
INTEREST. WHEREAS THEY NORMALLY EXHIBIT ADEQUATE PROTECTION PARAMETERS, ADVERSE
ECONOMIC CONDITIONS OR CHANGING CIRCUMSTANCES ARE MORE LIKELY TO LEAD TO A
WEAKENED CAPACITY TO PAY PRINCIPAL AND INTEREST FOR BONDS IN THIS CATEGORY THAN
FOR BONDS IN HIGHER RATED CATEGORIES.
BA/BB, B/B, CAA/CCC, CA/CC: DEBT RATED IN THESE CATEGORIES IS REGARDED AS
PREDOMINANTLY SPECULATIVE WITH RESPECT TO CAPACITY TO PAY INTEREST AND REPAY
PRINCIPAL. THE HIGHER THE DEGREE OF SPECULATION, THE LOWER THE RATING. WHILE
SUCH DEBT WILL LIKELY HAVE SOME QUALITY AND PROTECTIVE CHARACTERISTICS, THESE
ARE OUTWEIGHED BY LARGE UNCERTAINTIES OR MAJOR RISK EXPOSURE TO ADVERSE
CONDITIONS.
C/C: THIS RATING IS ONLY FOR INCOME BONDS ON WHICH NO INTEREST IS BEING
PAID.
D: DEBT IN DEFAULT; PAYMENT OF INTEREST AND/OR PRINCIPAL IS IN ARREARS.
COMMERCIAL PAPER:
MOODY'S INVESTORS SERVICE, INC.:
THE PRIME RATING IS THE HIGHEST COMMERCIAL PAPER RATING ASSIGNED BY
MOODY'S. AMONG THE FACTORS CONSIDERED BY MOODY'S IN ASSIGNING RATINGS ARE THE
FOLLOWING: (1) EVALUATION OF THE MANAGEMENT OF THE ISSUER; (2) ECONOMIC
EVALUATION OF THE ISSUER'S INDUSTRY OR INDUSTRIES AND AN APPRAISAL OF
SPECULATIVE-TYPE RISKS WHICH MAY BE INHERENT IN CERTAIN AREAS; (3) EVALUATION OF
THE ISSUER'S PRODUCTS IN RELATION TO COMPETITION AND CUSTOMER ACCEPTANCE; (4)
LIQUIDITY; (5) AMOUNT AND QUALITY OF LONG-TERM DEBT; (6) TREND OF EARNINGS OVER
A PERIOD OF TEN YEARS; (7) FINANCIAL STRENGTH OF A PARENT COMPANY AND THE
RELATIONSHIPS WHICH EXIST WITH THE ISSUER; AND (8) RECOGNITION BY MANAGEMENT OF
OBLIGATIONS WHICH MAY BE PRESENT OR MAY ARISE AS A RESULT OF PUBLIC INTEREST
QUESTIONS AND PREPARATIONS TO MEET SUCH OBLIGATIONS. ISSUERS WITHIN THIS PRIME
CATEGORY MAY BE GIVEN RATINGS 1, 2, OR 3, DEPENDING ON THE RELATIVE STRENGTHS OF
THESE FACTORS.
STANDARD & POOR'S CORPORATION:
COMMERCIAL PAPER RATED A BY STANDARD & POOR'S HAS THE FOLLOWING
CHARACTERISTICS: (I) LIQUIDITY RATIOS ARE ADEQUATE TO MEET CASH REQUIREMENTS;
(II) LONG-TERM SENIOR DEBT RATING SHOULD BE A OR BETTER, ALTHOUGH IN SOME CASES
BBB CREDITS MAY BE ALLOWED IF OTHER FACTORS OUTWEIGH THE BBB; (III) THE ISSUER
SHOULD HAVE ACCESS TO AT LEAST TWO ADDITIONAL CHANNELS OF BORROWING; (IV) BASIC
EARNINGS AND CASH FLOW SHOULD HAVE AN UPWARD TREND WITH ALLOWANCES MADE FOR
UNUSUAL CIRCUMSTANCES; AND (V) TYPICALLY THE ISSUER'S INDUSTRY SHOULD BE WELL
ESTABLISHED AND THE ISSUER SHOULD HAVE A STRONG POSITION WITHIN ITS INDUSTRY AND
THE RELIABILITY AND QUALITY OF MANAGEMENT SHOULD BE UNQUESTIONED. ISSUERS RATED
A ARE FURTHER REFERRED TO BY USE OF NUMBERS 1, 2 AND 3 TO DENOTE THE RELATIVE
STRENGTH WITHIN THIS HIGHEST CLASSIFICATION.
<PAGE>
LETTER OF INTENT
DATE
CALVERT DISTRIBUTORS, INC.
4550 MONTGOMERY AVENUE
BETHESDA, MD 20814
LADIES AND GENTLEMEN:
BY SIGNING THIS LETTER OF INTENT, OR AFFIRMATIVELY MARKING THE LETTER OF
INTENT OPTION ON MY FUND ACCOUNT APPLICATION FORM, I AGREE TO BE BOUND BY THE
TERMS AND CONDITIONS APPLICABLE TO LETTERS OF INTENT APPEARING IN THE PROSPECTUS
AND THE STATEMENT OF ADDITIONAL INFORMATION FOR THE FUND AND THE PROVISIONS
DESCRIBED BELOW AS THEY MAY BE AMENDED FROM TIME TO TIME BY THE FUND. SUCH
AMENDMENTS WILL APPLY AUTOMATICALLY TO EXISTING LETTERS OF INTENT.
I INTEND TO INVEST IN THE SHARES OF__________________ (FUND OR
PORTFOLIO NAME) DURING THE THIRTEEN (13) MONTH PERIOD FROM THE DATE OF MY FIRST
PURCHASE PURSUANT TO THIS LETTER (WHICH CANNOT BE MORE THAN NINETY (90) DAYS
PRIOR TO THE DATE OF THIS LETTER OR MY FUND ACCOUNT APPLICATION FORM, WHICHEVER
IS APPLICABLE), AN AGGREGATE AMOUNT (EXCLUDING ANY REINVESTMENTS OF
DISTRIBUTIONS) OF AT LEAST FIFTY THOUSAND DOLLARS ($50,000) WHICH, TOGETHER WITH
MY CURRENT HOLDINGS OF THE FUND (AT PUBLIC OFFERING PRICE ON DATE OF THIS LETTER
OR MY FUND ACCOUNT APPLICATION FORM, WHICHEVER IS APPLICABLE), WILL EQUAL OR
EXCEED THE AMOUNT CHECKED BELOW:
__ $50,000 __ $100,000 __ $250,000 __ $500,000 __ $1,000,000
SUBJECT TO THE CONDITIONS SPECIFIED BELOW, INCLUDING THE TERMS OF ESCROW,
TO WHICH I HEREBY AGREE, EACH PURCHASE OCCURRING AFTER THE DATE OF THIS LETTER
WILL BE MADE AT THE PUBLIC OFFERING PRICE APPLICABLE TO A SINGLE TRANSACTION OF
THE DOLLAR AMOUNT SPECIFIED ABOVE, AS DESCRIBED IN THE FUND'S PROSPECTUS. "FUND"
IN THIS LETTER OF INTENT SHALL REFER TO THE FUND OR PORTFOLIO, AS THE CASE MAY
BE. NO PORTION OF THE SALES CHARGE IMPOSED ON PURCHASES MADE PRIOR TO THE DATE
OF THIS LETTER WILL BE REFUNDED.
I AM MAKING NO COMMITMENT TO PURCHASE SHARES, BUT IF MY PURCHASES WITHIN
THIRTEEN MONTHS FROM THE DATE OF MY FIRST PURCHASE DO NOT AGGREGATE THE MINIMUM
AMOUNT SPECIFIED ABOVE, I WILL PAY THE INCREASED AMOUNT OF SALES CHARGES
PRESCRIBED IN THE TERMS OF ESCROW DESCRIBED BELOW. I UNDERSTAND THAT 4.75% OF
THE MINIMUM DOLLAR AMOUNT SPECIFIED ABOVE WILL BE HELD IN ESCROW IN THE FORM OF
SHARES (COMPUTED TO THE NEAREST FULL SHARE). THESE SHARES WILL BE HELD SUBJECT
TO THE TERMS OF ESCROW DESCRIBED BELOW.
FROM THE INITIAL PURCHASE (OR SUBSEQUENT PURCHASES IF NECESSARY), 4.75% OF
THE DOLLAR AMOUNT SPECIFIED IN THIS LETTER SHALL BE HELD IN ESCROW IN SHARES OF
THE FUND BY THE FUND'S TRANSFER AGENT. FOR EXAMPLE, IF THE MINIMUM AMOUNT
SPECIFIED UNDER THE LETTER IS $50,000, THE ESCROW SHALL BE SHARES VALUED IN THE
AMOUNT OF $2,375 (COMPUTED AT THE PUBLIC OFFERING PRICE ADJUSTED FOR A $50,000
PURCHASE). ALL DIVIDENDS AND ANY CAPITAL GAINS DISTRIBUTION ON THE ESCROWED
SHARES WILL BE CREDITED TO MY ACCOUNT.
IF THE TOTAL MINIMUM INVESTMENT SPECIFIED UNDER THE LETTER IS COMPLETED
WITHIN A THIRTEEN MONTH PERIOD, ESCROWED SHARES WILL BE PROMPTLY RELEASED TO ME.
HOWEVER, SHARES DISPOSED OF PRIOR TO COMPLETION OF THE PURCHASE REQUIREMENT
UNDER THE LETTER WILL BE DEDUCTED FROM THE AMOUNT REQUIRED TO COMPLETE THE
INVESTMENT COMMITMENT.
UPON EXPIRATION OF THIS LETTER, THE TOTAL PURCHASES PURSUANT TO THE LETTER
ARE LESS THAN THE AMOUNT SPECIFIED IN THE LETTER AS THE INTENDED AGGREGATE
PURCHASES, CALVERT DISTRIBUTORS, INC. ("CDI") WILL BILL ME FOR AN AMOUNT EQUAL
TO THE DIFFERENCE BETWEEN THE LOWER LOAD I PAID AND THE DOLLAR AMOUNT OF SALES
CHARGES WHICH I WOULD HAVE PAID IF THE TOTAL AMOUNT PURCHASED HAD BEEN MADE AT A
SINGLE TIME. IF NOT PAID BY THE INVESTOR WITHIN 20 DAYS, CDI WILL DEBIT THE
DIFFERENCE FROM MY ACCOUNT. FULL SHARES, IF ANY, REMAINING IN ESCROW AFTER THE
AFOREMENTIONED ADJUSTMENT WILL BE RELEASED AND, UPON REQUEST, REMITTED TO ME.
I IRREVOCABLY CONSTITUTE AND APPOINT CDI AS MY ATTORNEY-IN-FACT, WITH FULL
POWER OF SUBSTITUTION, TO SURRENDER FOR REDEMPTION ANY OR ALL ESCROWED SHARES ON
THE BOOKS OF THE FUND. THIS POWER OF ATTORNEY IS COUPLED WITH AN INTEREST.
THE COMMISSION ALLOWED BY CALVERT DISTRIBUTORS, INC. TO THE BROKER-DEALER
NAMED HEREIN SHALL BE AT THE RATE APPLICABLE TO THE MINIMUM AMOUNT OF MY
SPECIFIED INTENDED PURCHASES.
THE LETTER MAY BE REVISED UPWARD BY ME AT ANY TIME DURING THE
THIRTEEN-MONTH PERIOD, AND SUCH A REVISION WILL BE TREATED AS A NEW LETTER,
EXCEPT THAT THE THIRTEEN-MONTH PERIOD DURING WHICH THE PURCHASE MUST BE MADE
WILL REMAIN UNCHANGED AND THERE WILL BE NO RETROACTIVE REDUCTION OF THE SALES
CHARGES PAID ON PRIOR PURCHASES.
IN DETERMINING THE TOTAL AMOUNT OF PURCHASES MADE HEREUNDER, SHARES
DISPOSED OF PRIOR TO TERMINATION OF THIS LETTER WILL BE DEDUCTED. MY
BROKER-DEALER SHALL REFER TO THIS LETTER OF INTENT IN PLACING ANY FUTURE
PURCHASE ORDERS FOR ME WHILE THIS LETTER IS IN EFFECT.
DEALER NAME OF INVESTOR(S)
BY
AUTHORIZED SIGNER ADDRESS
DATE SIGNATURE OF INVESTOR(S)
DATE SIGNATURE OF INVESTOR(S)
<PAGE>
SCHEDULE A
CALVERT SOCIAL INDEX FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 27, 2000
ASSETS
------
CASH $100,000
--------
TOTAL ASSETS 100,000
-------
LIABILITIES
-----------
ACCRUED EXPENSES AND OTHER LIABILITIES 0
-
TOTAL LIABILITIES 0
-
NET ASSETS $100,000
========
NET ASSETS CONSIST OF:
-------------------------
PAID-IN CAPITAL APPLICABLE TO THE FOLLOWING SHARES OF COMMON STOCK,
WITH 250,000,000 SHARES OF $0.01 PAR VALUE SHARE AUTHORIZED FOR
CLASS A, B, C AND I COMBINED:
CLASS A: 6,466 SHARES OUTSTANDING $97,000
CLASS B: 67 SHARES OUTSTANDING 1,000
CLASS C: 67 SHARES OUTSTANDING 1,000
CLASS I: 67 SHARES OUTSTANDING 1,000
-----
NET ASSETS $100,000
========
NET ASSET VALUE PER SHARE
-----------------------------
CLASS A: (BASED ON NET ASSETS OF $97,000) $15.00
======
CLASS B: (BASED ON NET ASSETS OF $1,000) $15.00
======
CLASS C: (BASED ON NET ASSETS OF $1,000) $15.00
======
CLASS I: (BASED ON NET ASSETS OF $1,000) $15.00
======
<PAGE>
CALVERT SOCIAL INDEX FUND
NOTES TO STATEMENT OF ASSETS AND LIABILITIES
NOTE A - SIGNIFICANT ACCOUNTING POLICIES
GENERAL: THE CALVERT SOCIAL INDEX FUND (THE "FUND"), THE SOLE SERIES OF CALVERT
SOCIAL INDEX SERIES, INC., IS REGISTERED UNDER THE INVESTMENT COMPANY ACT OF
1940 AS A DIVERSIFIED, OPEN-END MANAGEMENT INVESTMENT COMPANY. THE FUND WAS
ORGANIZED AS A MARYLAND CORPORATION ON APRIL 7, 2000. IT HAS HAD NO OPERATIONS
SINCE THAT DATE, EXCEPT FOR MATTERS RELATING TO THE FUND'S ORGANIZATION AND
REGISTRATION UNDER THE INVESTMENT COMPANY ACT OF 1940 AND THE SECURITIES ACT OF
1933 AND THE SALE OF 6,667 SHARES ("INITIAL SHARES") OF THE FUND TO CALVERT
ASSET MANAGEMENT COMPANY, INC. THE FUND OFFERS FOUR SEPARATE CLASSES OF SHARES:
CLASS A, CLASS B, CLASS C AND CLASS I.
THE ADVISOR IS ASSUMING ALL ORGANIZATION COSTS OF THE FUND.
NOTE B - RELATED PARTY TRANSACTIONS
THE FUND HAS ENTERED INTO AN INVESTMENT ADVISORY AGREEMENT WITH CALVERT ASSET
MANAGEMENT COMPANY, INC. CALVERT ASSET MANAGEMENT COMPANY, INC. (THE "ADVISOR")
IS WHOLLY-OWNED BY CALVERT GROUP, LTD. ("CALVERT"), WHICH IS INDIRECTLY
WHOLLY-OWNED BY AMERITAS ACACIA MUTUAL HOLDING COMPANY. THE ADVISOR PROVIDES
INVESTMENT ADVISORY SERVICES AND PAYS THE SALARIES AND FEES OF OFFICERS AND
AFFILIATED DIRECTORS OF THE FUND. FOR ITS SERVICES, THE ADVISOR IS ENTITLED TO
RECEIVE AN ANNUAL FEE, PAYABLE MONTHLY, OF 0.225% OF THE FUND'S AVERAGE DAILY
NET ASSETS.
THE ADVISOR HAS AGREED TO LIMIT ANNUAL FUND OPERATING EXPENSES (NET OF EXPENSE
OFFSET ARRANGEMENTS) THROUGH SEPTEMBER 30, 2001. THE CONTRACTUAL EXPENSE CAP IS
0.75% FOR CLASS A, 1.75% FOR CLASS B, 1.75% FOR CLASS C AND 0.375% FOR CLASS I.
FOR THE PURPOSE OF THIS EXPENSE LIMIT, OPERATING EXPENSES DO NOT INCLUDE
INTEREST EXPENSE, BROKERAGE, TAXES, EXTRAORDINARY EXPENSES AND CAPITAL ITEMS.
THE FUND HAS ENTERED INTO AN ADMINISTRATIVE SERVICES AGREEMENT WITH CALVERT
ADMINISTRATIVE SERVICES COMPANY. CALVERT ADMINISTRATIVE SERVICES COMPANY
("CASC"), AN AFFILIATE OF THE ADVISOR, PROVIDES ADMINISTRATIVE SERVICES TO THE
FUND. CASC IS ENTITLED TO RECEIVE AN ANNUAL FEE, PAYABLE MONTHLY, OF 0.225% FOR
CLASSES A, B, AND C, AND 0.10% FOR CLASS I, OF THE FUND'S AVERAGE DAILY NET
ASSETS.
THE FUND HAS ENTERED INTO A DISTRIBUTION AGREEMENT AND DISTRIBUTION PLAN WITH
CALVERT DISTRIBUTORS, INC. CALVERT DISTRIBUTORS, INC. ("CDI"), AN AFFILIATE OF
THE ADVISOR, IS THE DISTRIBUTOR AND PRINCIPAL UNDERWRITER FOR THE FUND.
DISTRIBUTION PLANS, ADOPTED BY CLASS A, CLASS B, AND CLASS C SHARES ALLOW THE
FUND TO PAY THE DISTRIBUTOR FOR EXPENSES AND SERVICES ASSOCIATED WITH
DISTRIBUTION OF SHARES. SUCH EXPENSES MAY NOT EXCEED 0.25%, 1.00%, AND 1.00%
ANNUALLY OF AVERAGE DAILY NET ASSETS OF EACH CLASS A, CLASS B AND CLASS C.
THE FUND HAS ENTERED INTO A SHAREHOLDER SERVICING AGREEMENT WITH CALVERT
SHAREHOLDER SERVICES, INC. CALVERT SHAREHOLDER SERVICES, INC. ("CSSI"), AN
AFFILIATE OF THE ADVISOR, IS THE SHAREHOLDER SERVICING AGENT OF THE FUND.
NATIONAL FINANCIAL DATA SERVICES, INC. ("NFDS"), IS THE TRANSFER AND DIVIDEND
DISBURSING AGENT. FOR THESE SERVICES, NFDS AND CSSI ARE ENTITLED TO RECEIVE A
FEE OF $6.00 PER SHAREHOLDER ACCOUNT AND $0.65 PER TRANSACTION.
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE BOARD OF DIRECTORS OF
THE CALVERT SOCIAL INDEX SERIES, INC.:
IN OUR OPINION, THE ACCOMPANYING STATEMENT OF ASSETS AND LIABILITIES PRESENTS
FAIRLY, IN ALL MATERIAL RESPECTS, THE FINANCIAL POSITION OF THE CALVERT SOCIAL
INDEX FUND, ONE PORTFOLIO COMPRISING THE CALVERT SOCIAL INDEX SERIES, INC. (THE
"FUND") AT JUNE 27, 2000 IN CONFORMITY WITH ACCOUNTING PRINCIPLES GENERALLY
ACCEPTED IN THE UNITED STATES. THIS FINANCIAL STATEMENT IS THE RESPONSIBILITY
OF THE FUND'S MANAGEMENT; OUR RESPONSIBILITY IS TO EXPRESS AN OPINION ON THIS
FINANCIAL STATEMENT BASED UPON OUR AUDIT. WE CONDUCTED OUR AUDIT OF THIS
FINANCIAL STATEMENT IN ACCORDANCE WITH AUDITING STANDARDS GENERALLY ACCEPTED IN
THE UNITED STATES WHICH REQUIRE THAT WE PLAN AND PERFORM THE AUDIT TO OBTAIN
REASONABLE ASSURANCE ABOUT WHETHER THE FINANCIAL STATEMENT IS FREE OF MATERIAL
MISSTATEMENT. AN AUDIT INCLUDES EXAMINING, ON A TEST BASIS, EVIDENCE SUPPORTING
THE AMOUNTS AND DISCLOSURES IN THE FINANCIAL STATEMENT, ASSESSING THE ACCOUNTING
PRINCIPLES USED AND SIGNIFICANT ESTIMATES MADE BY MANAGEMENT, AND EVALUATING THE
OVERALL FINANCIAL STATEMENT PRESENTATION. WE BELIEVE THAT OUR AUDIT PROVIDES A
REASONABLE BASIS FOR THE OPINION EXPRESSED ABOVE.
PRICEWATERHOUSECOOPERS LLP
BALTIMORE, MARYLAND
JUNE 27, 2000
<PAGE>
INVESTMENT ADVISOR
CALVERT ASSET MANAGEMENT COMPANY, INC.
4550 MONTGOMERY AVENUE
SUITE 1000N
BETHESDA, MARYLAND 20814
SHAREHOLDER SERVICES TRANSFER AGENT
CALVERT SHAREHOLDER SERVICES, INC. NATIONAL FINANCIAL DATA SERVICES, INC.
4550 MONTGOMERY AVENUE 330 WEST 9TH STREET
SUITE 1000N KANSAS CITY, MISSOURI 64105
BETHESDA, MARYLAND 20814
PRINCIPAL UNDERWRITER INDEPENDENT ACCOUNTANTS
CALVERT DISTRIBUTORS, INC. PRICEWATERHOUSECOOPERS LLP
4550 MONTGOMERY AVENUE 250 WEST PRATT STREET
SUITE 1000N BALTIMORE, MARYLAND 21201
BETHESDA, MARYLAND 20814
<PAGE>
PART C. OTHER INFORMATION
ITEM 23. EXHIBITS
A ARTICLES OF INCORPORATION
B BY-LAWS
C INSTRUMENTS DEFINING THE SECURITY HOLDER RIGHTS (NOT APPLICABLE)
D INVESTMENT ADVISORY CONTRACT
INVESTMENT SUB-ADVISORY CONTRACT
E UNDERWRITING AGREEMENT
F DIRECTORS' DEFERRED COMPENSATION AGREEMENT
G CUSTODIAL CONTRACT
H TRANSFER AGENCY CONTRACT
SERVICING CONTRACT
ADMINISTRATIVE SERVICES AGREEMENT
LICENSING AGREEMENT
I OPINION ND CONSENT OF COUNSEL AS TO LEGALITY
OF SHARES BEING REGISTERED
J INDEPENDENT AUDITORS' CONSENT
K OMITTED FINANCIAL STATEMENT RE COMPUTATION OF RATIOS
(NOT APPLICABLE)
L LETTER REGARDING INITIAL CAPITAL
M PLAN OF DISTRIBUTION, CLASS A, B, AND C
N 18F-3 MULTIPLE CLASS PLAN DOCUMENT
O [RESERVED]
P CODE OF ETHICS
ITEM 24. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH REGISTRANT
NOT APPLICABLE.
ITEM 25. INDEMNIFICATION
REGISTRANT'S BY-LAWS, EXHIBIT 2 OF THIS REGISTRATION STATEMENT,
PROVIDES, IN SUMMARY, THAT OFFICERS AND DIRECTORS SHALL BE INDEMNIFIED BY
REGISTRANT AGAINST LIABILITIES AND EXPENSES INCURRED BY SUCH PERSONS IN
CONNECTION WITH ACTIONS, SUITS, OR PROCEEDINGS ARISING OUT OF THEIR OFFICES OR
DUTIES OF EMPLOYMENT, EXCEPT THAT NO INDEMNIFICATION CAN BE MADE TO SUCH A
PERSON IF HE HAS BEEN ADJUDGED LIABLE OF WILLFUL MISFEASANCE, BAD FAITH, GROSS
NEGLIGENCE, OR RECKLESS DISREGARD OF HIS DUTIES. IN THE ABSENCE OF SUCH AN
ADJUDICATION, THE DETERMINATION OF ELIGIBILITY FOR INDEMNIFICATION SHALL BE MADE
BY INDEPENDENT COUNSEL IN A WRITTEN OPINION OR BY THE VOTE OF A MAJORITY OF A
QUORUM OF DIRECTORS WHO ARE NEITHER "INTERESTED PERSONS" OF REGISTRANT, AS THAT
TERM IS DEFINED IN SECTION 2(A)(19) OF THE INVESTMENT COMPANY ACT OF 1940, NOR
PARTIES TO THE PROCEEDING.
REGISTRANT MAY PURCHASE AND MAINTAIN LIABILITY INSURANCE ON BEHALF OF
ANY OFFICER, TRUSTEE, EMPLOYEE OR AGENT AGAINST ANY LIABILITIES ARISING FROM
SUCH STATUS. IN THIS REGARD, REGISTRANT WILL MAINTAIN A DIRECTORS & OFFICERS
(PARTNERS) LIABILITY INSURANCE POLICY WITH CHUBB GROUP OF INSURANCE COMPANIES,
15 MOUNTAIN VIEW ROAD, WARREN, NEW JERSEY 07061, PROVIDING REGISTRANT WITH $5
MILLION IN DIRECTORS AND OFFICERS LIABILITY COVERAGE, PLUS $5 MILLION IN EXCESS
DIRECTORS AND OFFICERS LIABILITY COVERAGE FOR THE INDEPENDENT TRUSTEES/DIRECTORS
ONLY. REGISTRANT ALSO MAINTAINS AN $9 MILLION INVESTMENT COMPANY BLANKET BOND
ISSUED BY ICI MUTUAL INSURANCE COMPANY, P.O. BOX 730, BURLINGTON, VERMONT,
05402. THE FUND MAINTAINS JOINT COVERAGE WITH THE OTHER CALVERT GROUP FUNDS, AND
FOR THE LIABILITY COVERAGE, WITH THE ADVISOR AND ITS AFFILIATED COMPANIES
("CALVERT OPERATING COMPANIES.") THE PREMIUM AND THE COVERAGE ARE ALLOCATED
BASED ON A METHOD APPROVED BY THE DISINTERESTED FUND DIRECTORS.
ITEM 26. BUSINESS AND OTHER CONNECTIONS OF INVESTMENT ADVISER
NAME OF COMPANY, PRINCIPAL
NAME BUSINESS AND ADDRESS CAPACITY
BARBARA J. KRUMSIEK CALVERT VARIABLE SERIES, INC. OFFICER
CALVERT MUNICIPAL FUND, INC. AND
CALVERT WORLD VALUES FUND, INC. DIRECTOR
INVESTMENT COMPANIES
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
----------------
FIRST VARIABLE RATE FUND FOR OFFICER
GOVERNMENT INCOME AND
CALVERT TAX-FREE RESERVES TRUSTEE
CALVERT SOCIAL INVESTMENT FUND
CALVERT CASH RESERVES
THE CALVERT FUND
INVESTMENT COMPANIES
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
----------------
CALVERT ASSET MANAGEMENT CO., INC. OFFICER
INVESTMENT ADVISOR AND
4550 MONTGOMERY AVENUE DIRECTOR
BETHESDA, MARYLAND 20814
----------------
CALVERT GROUP, LTD. OFFICER
HOLDING COMPANY AND
4550 MONTGOMERY AVENUE DIRECTOR
BETHESDA, MARYLAND 20814
----------------
CALVERT SHAREHOLDER SERVICES, INC. OFFICER
TRANSFER AGENT AND
4550 MONTGOMERY AVENUE DIRECTOR
BETHESDA, MARYLAND 20814
---------------
CALVERT ADMINISTRATIVE SERVICES CO. OFFICER
SERVICE COMPANY AND
4550 MONTGOMERY AVENUE DIRECTOR
BETHESDA, MARYLAND 20814
---------------
CALVERT DISTRIBUTORS, INC. OFFICER
BROKER-DEALER AND
4550 MONTGOMERY AVENUE DIRECTOR
BETHESDA, MARYLAND 20814
---------------
CALVERT-SLOAN ADVISERS, LLC DIRECTOR
INVESTMENT ADVISOR
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
---------------
CALVERT NEW WORLD FUND, INC. DIRECTOR
INVESTMENT COMPANY
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
--------------
ALLIANCE CAPITAL MGMT. L.P. SR. VICE PRESIDENT
MUTUAL FUND DIVISION DIRECTOR
1345 AVENUE OF THE AMERICAS
NEW YORK, NY 10105
--------------
RONALD M. WOLFSHEIMER FIRST VARIABLE RATE FUND OFFICER
FOR GOVERNMENT INCOME
CALVERT TAX-FREE RESERVES
CALVERT CASH RESERVES
CALVERT SOCIAL INVESTMENT FUND
THE CALVERT FUND
CALVERT VARIABLE SERIES, INC.
CALVERT MUNICIPAL FUND, INC.
CALVERT WORLD VALUES FUND, INC.
CALVERT NEW WORLD FUND, INC.
INVESTMENT COMPANIES
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
--------------
CALVERT ASSET MANAGEMENT CO., INC. OFFICER
INVESTMENT ADVISOR
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
---------------
CALVERT GROUP, LTD. OFFICER
HOLDING COMPANY
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
---------------
CALVERT SHAREHOLDER SERVICES, INC. OFFICER
TRANSFER AGENT
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
---------------
CALVERT ADMINISTRATIVE SERVICES CO. OFFICER
SERVICE COMPANY AND
4550 MONTGOMERY AVENUE DIRECTOR
BETHESDA, MARYLAND 20814
---------------
CALVERT DISTRIBUTORS, INC. OFFICER
BROKER-DEALER AND
4550 MONTGOMERY AVENUE DIRECTOR
BETHESDA, MARYLAND 20814
---------------
CALVERT-SLOAN ADVISERS, LLC OFFICER
INVESTMENT ADVISOR
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
---------------
DAVID R. ROCHAT FIRST VARIABLE RATE FUND OFFICER
FOR GOVERNMENT INCOME AND
CALVERT TAX-FREE RESERVES TRUSTEE
CALVERT CASH RESERVES
THE CALVERT FUND
INVESTMENT COMPANIES
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
---------------
CALVERT MUNICIPAL FUND, INC. OFFICER
INVESTMENT COMPANY AND
4550 MONTGOMERY AVENUE DIRECTOR
BETHESDA, MARYLAND 20814
---------------
CALVERT ASSET MANAGEMENT CO., INC. OFFICER
INVESTMENT ADVISOR AND
4550 MONTGOMERY AVENUE DIRECTOR
BETHESDA, MARYLAND 20814
---------------
CHELSEA SECURITIES, INC. OFFICER
SECURITIES FIRM AND
POST OFFICE BOX 93 DIRECTOR
CHELSEA, VERMONT 05038
---------------
GRADY, BERWALD & CO. OFFICER
HOLDING COMPANY AND
43A SOUTH FINLEY AVENUE DIRECTOR
BASKING RIDGE, NJ 07920
---------------
RENO J. MARTINI CALVERT ASSET MANAGEMENT CO., INC. OFFICER
INVESTMENT ADVISOR
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
---------------
CALVERT GROUP, LTD. OFFICER
HOLDING COMPANY
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
---------------
FIRST VARIABLE RATE FUND OFFICER
FOR GOVERNMENT INCOME
CALVERT TAX-FREE RESERVES
CALVERT CASH RESERVES
CALVERT SOCIAL INVESTMENT FUND
THE CALVERT FUND
CALVERT VARIABLE SERIES, INC.
CALVERT MUNICIPAL FUND, INC.
CALVERT WORLD VALUES FUND, INC.
INVESTMENT COMPANIES
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
---------------
CALVERT NEW WORLD FUND, INC. DIRECTOR
INVESTMENT COMPANY AND
4550 MONTGOMERY AVENUE OFFICER
BETHESDA, MARYLAND 20814
---------------
CALVERT-SLOAN ADVISERS, LLC DIRECTOR
INVESTMENT ADVISOR AND
4550 MONTGOMERY AVENUE OFFICER
BETHESDA, MARYLAND 20814
---------------
CHARLES T. NASON AMERITAS ACACIA MUTUAL HOLDING COMPANY OFFICER
ACACIA LIFE INSURANCE AND DIRECTOR
INSURANCE COMPANIES
7315 WISCONSIN AVENUE
BETHESDA, MARYLAND 20814
---------------
ACACIA FINANCIAL CORPORATION OFFICER
HOLDING COMPANY AND
7315 WISCONSIN AVENUE DIRECTOR
BETHESDA, MARYLAND 20814
---------------
ACACIA FEDERAL SAVINGS BANK DIRECTOR
SAVINGS BANK
7600-B LEESBURG PIKE
FALLS CHURCH, VIRGINIA 22043
---------------
ENTERPRISE RESOURCES, INC. DIRECTOR
BUSINESS SUPPORT SERVICES
7315 WISCONSIN AVENUE
BETHESDA, MARYLAND 20814
---------------
ACACIA REALTY SQUARE, L.L.C. DIRECTOR
REALTY INVESTMENTS
7315 WISCONSIN AVENUE
BETHESDA, MARYLAND 20814
---------------
GARDNER MONTGOMERY COMPANY DIRECTOR
TAX RETURN PREPARATION SERVICES
7315 WISCONSIN AVENUE
BETHESDA, MARYLAND 20814
---------------
CALVERT GROUP, LTD. DIRECTOR
HOLDING COMPANY
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
---------------
CALVERT ADMINISTRATIVE SERVICES CO. DIRECTOR
SERVICE COMPANY
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
---------------
CALVERT ASSET MANAGEMENT CO., INC. DIRECTOR
INVESTMENT ADVISOR
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
---------------
CALVERT SHAREHOLDER SERVICES, INC. DIRECTOR
TRANSFER AGENT
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
---------------
CALVERT SOCIAL INVESTMENT FUND TRUSTEE
INVESTMENT COMPANY
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
-----------------
THE ADVISORS GROUP, LTD. DIRECTOR
BROKER-DEALER AND
INVESTMENT ADVISOR
7315 WISCONSIN AVENUE
BETHESDA, MARYLAND 20814
---------------
[/R]
ROBERT-JOHN H. SANDS AMERITAS ACACIA MUTUAL HOLDING COMPANY OFFICER
ACACIA LIFE INSURANCE
[/R]
ACACIA NATIONAL LIFE INSURANCE OFFICER
INSURANCE COMPANY AND
7315 WISCONSIN AVENUE DIRECTOR
BETHESDA, MARYLAND 20814
----------------
ACACIA LIFE INSURANCE OFFICER
INSURANCE COMPANY
7315 WISCONSIN AVENUE
BETHESDA, MARYLAND 20814
----------------
ACACIA FINANCIAL CORPORATION OFFICER
HOLDING COMPANY AND
7315 WISCONSIN AVENUE DIRECTOR
BETHESDA, MARYLAND 20814
----------------
ACACIA FEDERAL SAVINGS BANK OFFICER
SAVINGS BANK
7600-B LEESBURG PIKE
FALLS CHURCH, VIRGINIA 22043
---------------
ENTERPRISE RESOURCES, INC. DIRECTOR
BUSINESS SUPPORT SERVICES
7315 WISCONSIN AVENUE
BETHESDA, MARYLAND 20814
---------------
ACACIA REALTY SQUARE, L.L.C. DIRECTOR
REALTY INVESTMENTS
7315 WISCONSIN AVENUE
BETHESDA, MARYLAND 20814
---------------
THE ADVISORS GROUP, LTD. DIRECTOR
BROKER-DEALER AND
INVESTMENT ADVISOR
7315 WISCONSIN AVENUE
BETHESDA, MARYLAND 20814
---------------
GARDNER MONTGOMERY COMPANY DIRECTOR
TAX RETURN PREPARATION SERVICES
7315 WISCONSIN AVENUE
BETHESDA, MARYLAND 20814
---------------
CALVERT GROUP, LTD. DIRECTOR
HOLDING COMPANY
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
---------------
CALVERT ADMINISTRATIVE SERVICES CO. DIRECTOR
SERVICE COMPANY
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
---------------
CALVERT ASSET MANAGEMENT, CO., INC. DIRECTOR
INVESTMENT ADVISOR
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
---------------
CALVERT SHAREHOLDER SERVICES, INC. DIRECTOR
TRANSFER AGENT
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
---------------
WILLIAM M. TARTIKOFF ACACIA NATIONAL LIFE INSURANCE OFFICER
INSURANCE COMPANY
7315 WISCONSIN AVENUE
BETHESDA, MARYLAND 20814
----------------
FIRST VARIABLE RATE FUND FOR OFFICER
GOVERNMENT INCOME
CALVERT TAX-FREE RESERVES
CALVERT CASH RESERVES
CALVERT SOCIAL INVESTMENT FUND
THE CALVERT FUND
CALVERT VARIABLE SERIES, INC.
CALVERT MUNICIPAL FUND, INC.
CALVERT WORLD VALUES FUND, INC.
CALVERT NEW WORLD FUND, INC.
INVESTMENT COMPANIES
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
---------------
CALVERT GROUP, LTD. OFFICER
HOLDING COMPANY
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
---------------
CALVERT ADMINISTRATIVE OFFICER
SERVICES COMPANY
SERVICE COMPANY
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
---------------
CALVERT ASSET MANAGEMENT CO. INC. OFFICER
INVESTMENT ADVISOR
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
----------------
CALVERT SHAREHOLDER SERVICES, INC. OFFICER
TRANSFER AGENT
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
----------------
CALVERT DISTRIBUTORS, INC. DIRECTOR
BROKER-DEALER AND
4550 MONTGOMERY AVENUE OFFICER
BETHESDA, MARYLAND 20814
----------------
CALVERT-SLOAN ADVISERS, LLC OFFICER
INVESTMENT ADVISOR
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
----------------
SUSAN WALKER BENDER CALVERT GROUP, LTD. OFFICER
HOLDING COMPANY
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
---------------
CALVERT ADMINISTRATIVE SERVICES CO. OFFICER
SERVICE COMPANY
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
---------------
CALVERT ASSET MANAGEMENT CO., INC. OFFICER
INVESTMENT ADVISOR
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
----------------
CALVERT SHAREHOLDER SERVICES, INC. OFFICER
TRANSFER AGENT
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
----------------
CALVERT DISTRIBUTORS, INC. OFFICER
BROKER-DEALER
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
----------------
CALVERT-SLOAN ADVISERS, LLC OFFICER
INVESTMENT ADVISOR
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
----------------
FIRST VARIABLE RATE FUND FOR OFFICER
GOVERNMENT INCOME
CALVERT TAX-FREE RESERVES
CALVERT CASH RESERVES
CALVERT SOCIAL INVESTMENT FUND
THE CALVERT FUND
CALVERT VARIABLE SERIES, INC.
CALVERT MUNICIPAL FUND, INC.
CALVERT WORLD VALUES FUND, INC.
CALVERT NEW WORLD FUND, INC.
INVESTMENT COMPANIES
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
---------------
IVY WAFFORD DUKE CALVERT GROUP, LTD. OFFICER
HOLDING COMPANY
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
---------------
CALVERT ADMINISTRATIVE SERVICES CO. OFFICER
SERVICE COMPANY
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
---------------
CALVERT ASSET MANAGEMENT CO., INC. OFFICER
INVESTMENT ADVISOR
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
----------------
CALVERT SHAREHOLDER SERVICES, INC. OFFICER
TRANSFER AGENT
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
----------------
CALVERT DISTRIBUTORS, INC. OFFICER
BROKER-DEALER
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
----------------
CALVERT-SLOAN ADVISERS, LLC OFFICER
INVESTMENT ADVISOR
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
----------------
FIRST VARIABLE RATE FUND FOR OFFICER
GOVERNMENT INCOME
CALVERT TAX-FREE RESERVES
CALVERT CASH RESERVES
CALVERT SOCIAL INVESTMENT FUND
THE CALVERT FUND
CALVERT VARIABLE SERIES, INC.
CALVERT MUNICIPAL FUND, INC.
CALVERT WORLD VALUES FUND, INC.
CALVERT NEW WORLD FUND, INC.
INVESTMENT COMPANIES
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
---------------
JENNIFER STREAKS CALVERT GROUP, LTD. OFFICER
HOLDING COMPANY
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
---------------
CALVERT ADMINISTRATIVE SERVICES CO. OFFICER
SERVICE COMPANY
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
---------------
CALVERT ASSET MANAGEMENT CO., INC. OFFICER
INVESTMENT ADVISOR
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
----------------
CALVERT SHAREHOLDER SERVICES, INC. OFFICER
TRANSFER AGENT
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
----------------
CALVERT DISTRIBUTORS, INC. OFFICER
BROKER-DEALER
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
VICTOR FRYE CALVERT GROUP, LTD. OFFICER
HOLDING COMPANY
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
---------------
CALVERT ADMINISTRATIVE SERVICES CO. OFFICER
SERVICE COMPANY
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
---------------
CALVERT ASSET MANAGEMENT CO., INC. OFFICER
INVESTMENT ADVISOR
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
----------------
CALVERT SHAREHOLDER SERVICES, INC. OFFICER
TRANSFER AGENT
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
----------------
CALVERT DISTRIBUTORS, INC. OFFICER
BROKER-DEALER
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
----------------
THE ADVISORS GROUP, LTD. COUNSEL
BROKER-DEALER AND AND
INVESTMENT ADVISOR COMPLIANCE
7315 WISCONSIN AVENUE MANAGER
BETHESDA, MARYLAND 20814
---------------
DANIEL K. HAYES CALVERT ASSET MANAGEMENT CO., INC. OFFICER
INVESTMENT ADVISOR
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
------------------
FIRST VARIABLE RATE FUND FOR OFFICER
GOVERNMENT INCOME
CALVERT TAX-FREE RESERVES
CALVERT CASH RESERVES
CALVERT SOCIAL INVESTMENT FUND
THE CALVERT FUND
CALVERT VARIABLE SERIES, INC.
CALVERT MUNICIPAL FUND, INC.
CALVERT WORLD VALUES FUND, INC.
INVESTMENT COMPANIES
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
------------------
JOHN NICHOLS CALVERT ASSET MANAGEMENT OFFICER
COMPANY, INC.
INVESTMENT ADVISOR
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
------------------
DAVID LEACH CALVERT ASSET MANAGEMENT OFFICER
COMPANY, INC.
INVESTMENT ADVISOR
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
------------------
MATTHEW D. GELFAND CALVERT ASSET MANAGEMENT OFFICER
COMPANY, INC.
INVESTMENT ADVISOR
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
------------------
STRATEGIC INVESTMENT MANAGEMENT OFFICER
INVESTMENT ADVISOR
1001 19TH STREET NORTH
ARLINGTON, VIRGINIA 20009
------------------
ITEM 27. PRINCIPAL UNDERWRITERS
(A) REGISTRANT'S PRINCIPAL UNDERWRITER UNDERWRITES SHARES OF
FIRST VARIABLE RATE FUND FOR GOVERNMENT INCOME, CALVERT TAX-FREE RESERVES,
CALVERT SOCIAL INVESTMENT FUND, CALVERT CASH RESERVES, THE CALVERT FUND,
CALVERT MUNICIPAL FUND, INC., CALVERT WORLD VALUES FUND, INC., CALVERT NEW
WORLD FUND, INC., AND CALVERT VARIABLE SERIES, INC. (FORMERLY NAMED ACACIA
CAPITAL CORPORATION).
(B) POSITIONS OF UNDERWRITER'S OFFICERS AND DIRECTORS
NAME AND PRINCIPAL POSITION(S) WITH POSITION(S) WITH
BUSINESS ADDRESS UNDERWRITER REGISTRANT
BARBARA J. KRUMSIEK DIRECTOR AND PRESIDENT PRESIDENT AND DIRECTOR
RONALD M. WOLFSHEIMER DIRECTOR, SENIOR VICE TREASURER
PRESIDENT AND CHIEF FINANCIAL
OFFICER
WILLIAM M. TARTIKOFF DIRECTOR, SENIOR VICE VICE PRESIDENT AND
PRESIDENT AND SECRETARY SECRETARY
CRAIG CLOYED SENIOR VICE PRESIDENT NONE
KAREN BECKER VICE PRESIDENT, OPERATIONS NONE
MATTHEW GELFAND VICE PRESIDENT NONE
GEOFFREY ASHTON REGIONAL VICE PRESIDENT NONE
MARTIN BROWN REGIONAL VICE PRESIDENT NONE
BILL HAIRGROVE REGIONAL VICE PRESIDENT NONE
ANTHONY EAMES REGIONAL VICE PRESIDENT NONE
STEVE HIMBER REGIONAL VICE PRESIDENT NONE
TANYA WILLIAMS REGIONAL VICE PRESIDENT NONE
BEN OGBOGU REGIONAL VICE PRESIDENT NONE
TOM STANTON REGIONAL VICE PRESIDENT NONE
CHRISTINE TESKE REGIONAL VICE PRESIDENT NONE
JENNIFER STREAKS ASSISTANT SECRETARY NONE
SUSAN WALKER BENDER ASSISTANT SECRETARY ASSISTANT SECRETARY
IVY WAFFORD DUKE ASSISTANT SECRETARY ASSISTANT SECRETARY
VICTOR FRYE ASSISTANT SECRETARY NONE
AND COMPLIANCE OFFICER
(C) INAPPLICABLE.
ITEM 28. LOCATION OF ACCOUNTS AND RECORDS
RONALD M. WOLFSHEIMER, TREASURER
AND
WILLIAM M. TARTIKOFF, ASSISTANT SECRETARY
4550 MONTGOMERY AVENUE, SUITE 1000N
BETHESDA, MARYLAND 20814
ITEM 29. MANAGEMENT SERVICES
NOT APPLICABLE
ITEM 30. UNDERTAKINGS
INSOFAR AS INDEMNIFICATION FOR LIABILITY ARISING UNDER THE
SECURITIES ACT OF 1933 MAY BE PERMITTED TO DIRECTORS, OFFICERS AND CONTROLLING
PERSONS OF THE REGISTRANT PURSUANT TO THE FOREGOING PROVISIONS [OF RULE 484],
OR OTHERWISE, THE REGISTRANT HAS BEEN ADVISED THAT IN THE OPINION OF THE
SECURITIES AND EXCHANGE COMMISSION SUCH INDEMNIFICATION IS AGAINST PUBLIC POLICY
AS EXPRESSED IN THE ACT AND IS, THEREFORE, UNENFORCEABLE. IN THE EVENT THAT A
CLAIM FOR INDEMNIFICATION AGAINST SUCH LIABILITIES (OTHER THAN THE PAYMENT BY
THE REGISTRANT OF EXPENSES INCURRED OR PAID BY A DIRECTOR, OFFICER OR
CONTROLLING PERSON OF THE REGISTRANT IN THE SUCCESSFUL DEFENSE OF ANY ACTION,
SUIT OR PROCEEDING) IS ASSERTED BY SUCH DIRECTOR, OFFICER OR CONTROLLING PERSON
IN CONNECTION WITH THE SECURITIES BEING REGISTERED, THE REGISTRANT WILL, UNLESS
IN THE OPINION OF COUNSEL THE MATTER HAS BEEN SETTLED BY CONTROLLING PRECEDENT,
SUBMIT TO A COURT OF APPROPRIATE JURISDICTION THE QUESTION WHETHER SUCH
INDEMNIFICATION BY IT IS AGAINST PUBLIC POLICY AS EXPRESSED IN THE ACT AND WILL
BE GOVERNED BY THE FINAL ADJUDICATION OF SUCH ISSUE.
SIGNATURES
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES ACT OF 1933 AND THE INVESTMENT
COMPANY ACT OF 1940, THE REGISTRANT HAS DULY CAUSED THIS REGISTRATION
STATEMENT TO BE SIGNED ON ITS BEHALF BY THE UNDERSIGNED, DULY AUTHORIZED, IN
THE CITY OF BETHESDA, AND STATE OF MARYLAND, ON THE 28th DAY OF June, 2000.
CALVERT SOCIAL INDEX SERIES, INC.
BY:
/s/ Barbara J. Krumsiek
BARBARA J. KRUMSIEK
PRESIDENT
SIGNATURES
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES ACT OF 1933,
THIS REGISTRATION STATEMENT HAS BEEN SIGNED BELOW BY THE FOLLOWING
PERSONS IN THE CAPACITIES INDICATED.
SIGNATURE TITLE DATE
/s/ Barbara J. Krumsiek PRESIDENT 6/28/2000
BARBARA J. KRUMSIEK DIRECTOR
__________**____________ DIRECTOR 6/28/2000
D. WAYNE SILBY
/s/ Ronald M. Wolfsheimer PRINCIPAL ACCOUNTING 6/28/2000
RONALD M. WOLFSHEIMER OFFICER
________________________ DIRECTOR 6/28/2000
REBECCA L. ADAMSON
__________**____________ DIRECTOR 6/28/2000
RICHARD L. BAIRD, JR.
__________**____________ DIRECTOR 6/28/2000
JOY V. JONES
__________**____________ DIRECTOR 6/28/2000
TERRENCE J. MOLLNER
________________________ DIRECTOR 6/28/2000
SYDNEY AMARA MORRIS
________________________ DIRECTOR 6/28/2000
CHARLES T. NASON
** SIGNED BY SUSAN WALKER BENDER PURSUANT TO POWER OF ATTORNEY.
