SEC Registration Nos.
333-43456 and 811-10045
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-1A
REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OF 1933
POST-EFFECTIVE AMENDMENT NO. 1 XX
and/or
REGISTRATION STATEMENT UNDER THE
INVESTMENT COMPANY ACT OF 1940
AMENDMENT NO. 1 XX
Calvert Impact Fund, Inc.
THIS FILING IS FOR CALVERT SOUTH AFRICA FUND ONLY
(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)
XX 75 DAYS AFTER FILING ___ ON (DATE)
PURSUANT TO PARAGRAPH (A) PURSUANT TO PARAGRAPH (A)
<PAGE>
PROSPECTUS
___________, 2001
CALVERT SOUTH AFRICA FUND
About the Fund
2 Investment Objective, Strategy, Past Performance
5 Fees and Expenses
7 Investment Practices and Risks
About Your Investment
14 About the Advisor
14 Subadvisors and Portfolio Management Team
15 Advisory Fees
16 How to Buy Shares
19 Distribution and Service Fees
20 Account Application
20 Important - How Shares are Priced
21 When Your Account Will be Credited
21 Other Calvert Group Features
(Exchanges, Minimum Account Balance, etc.)
24 Dividends, Capital Gains and Taxes
25 How to Sell Shares
30 Exhibit A- Reduced Sales Charges (Class A)
32 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.
<PAGE>
Calvert South Africa Fund
Advisor: Calvert Asset Management Company, Inc.
Subadvisors: Reinvest South Africa ("RISA") Investment Advisers, LLC
African Harvest Asset Manager Limited
Investment Objective
The Fund will seek maximum total return by investing in securities of South
African issuers. The Fund considers a company to be a South African issuer if
the company derives its revenues mainly from business activities in South Africa
or its stock is traded principally on a South African exchange. This objective
may be changed by the Fund's Board of Directors without shareholder approval.
Principal Investment Strategies
The Fund typically invests at least 75% of its assets in publicly traded stocks
of South African companies with above average growth aspects. The Advisor
describes companies that pass the Fund's proactive screens as "New South Africa"
Companies. The Advisor believes that New South Africa Companies, as a group,
will outperform the JSE All Shares Index over time because they have embraced
the social and economic transformation sweeping South Africa.
These companies:
- create jobs and train workers;
- encourage economic and social empowerment of the majority population;
- encourage employment equity;
- maintain quality workplace conditions;
- protect the environment;
- enforce high health and safety standards;
- demonstrate open and effective corporate governance; and
- respect the rights of indigenous peoples
The Fund will invest in companies that are expected to achieve sustainable
growth and profitability. The Fund will invest approximately 75% of its total
assets in publicly traded stocks of South African companies. The Fund may invest
up to 25% of its assets in sovereign debt issued by the government of South
Africa. The Fund is also permitted to invest up to 20% of its assets in high
quality money market instruments of U.S. and South African issuers. If adverse
market or economic conditions occur, the Fund temporarily may invest up to 100%
of its assets in U.S. money market instruments.
The Fund's strategy for selecting growth stocks begins with a company-by-company
approach emphasizing fundamental stock analysis. This encompasses industry and
competitor analysis, regular management visits, financial statement and ratio
analysis and international comparative evaluations. The Fund seeks to reduce
portfolio risk by research rather than by diversification.
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Socially Responsible Investment Criteria
Investments are selected on the basis of their ability to contribute to the dual
objectives of financial soundness and societal impact. The Fund has developed
social investment criteria, detailed below. These criteria represent standards
of behavior which few, if any, organizations totally satisfy. As a matter of
practice, evaluation of a particular organization in the context of these
criteria will involve subjective judgment by the Advisor and Subadvisors. All
social criteria may be changed by the Board of Directors without shareholder
approval.
Current negative screens are tobacco, alcohol and weapons that have a 10%
allowable revenue threshold. The Fund's alcohol prohibition pertains to hard
liquor only. The Fund also has a prohibition against predatory lending.
Indigenous Peoples Rights: The Fund will not invest in companies that are
significantly engaged in a pattern and practice of violating the rights of
indigenous people. The Fund seeks to invest in companies that are engaged in
positive portrayals of indigenous peoples.
The following criteria, created by the Labour Research Group in South Africa,
will be used to screen the Portfolio. All the criteria are equally weighted.
Any company that scores below 50% on the scorecard is rejected. Companies that
earn more than 60% are approved while those that earn above 70% will be
highlighted for special praise. Companies whose primary business is tobacco,
gambling, weapons or predatory lending will be excluded from the Portfolio.
Create jobs through innovation and expansion plans
The Fund will ask senior management probing questions about their plans and
strategies and assess their ability to innovate and invest for job creating.
Training of workers to enhance skills
All workers must be skilled and to achieve this company training programs and
grading systems must be transformed to provide clear career paths for all
employees.
Economic and social empowerment
The Fund will seek companies where there is evidence of high levels of worker
empowerment.
Equity through affirmative action
Programs within the company should focus on the advancement of women, black
employees and the disabled.
Good conditions of employment
Special focus will be given to the company's minimum wage.
Sound environment practices must be promoted
The Fund will pay close attention to companies to ensure they put in place
practices which will protect the environment.
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High health and safety standards must be applied
The Fund will rely on the reports of employees and wants to see active
involvement of trade unions.
Demonstrate open and effective corporate governance
The Fund wants full disclosure of director's pay and more effective
communication with all stakeholders.
PRINCIPAL RISKS
The Fund is designed for aggressive, long-term investors who are willing to
accept above-average risk in order to seek a higher rate of return over time.
Investments in African and African-related issuers involve risk factors and
special considerations not normally associated with investments in United
States issuers.
You could lose money on your investment in the Fund, or the Fund could
underperform for any of the following reasons:
1. Stocks are subject to market, economic and business risks that cause their
prices to fluctuate.
2. Investing in South African securities involves additional risks not
associated with investments in U.S. securities.
- The Fund is subject to foreign currency risk, which is the risk that the U.S.
dollar value of its investments may decline due to changes in foreign currency
exchange rates or the imposition of exchange control regulations
- South Africa is a developing country and its economy is less diversified and
mature than the economies of developed countries. There is a risk of economic or
political instability in South Africa.
- There is less liquidity and higher volatility in the South African securities
markets than in the U.S. and less government supervision and regulation of
exchanges, brokers and issuers in South Africa.
- South African companies are not subject to the same accounting, auditing and
financial reporting standards as U.S. public companies, and there may be less
publicly available information about South African companies than comparable
U.S. companies.
- Government actions may be taken which could negatively affect the Fund.
3. The Fund's investments in South African sovereign debt obligations are
subject to interest rate risk and credit risk. Interest rate risk is the risk of
market losses caused by changes in interest rates. Generally, when interest
rates rise, the market prices of debt obligations go down. Credit risk is the
risk that the borrower may default or otherwise become unable to honor its
financial obligations.
<PAGE>
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.
Bar Chart and Performance Table*
(to be added)
The following bar chart and table show the Fund's annual returns and its
long-term performance. The chart shows how the performance of the Fund's shares
has varied from year to year. The table compares the Fund's performance over
time to that of the MSCI South Africa Index, a widely recognized, unmanaged
index of common stock prices. It also compares the Fund's performance to the
Lipper Emerging Market Fund Index. In the chart and table below, performance
results before 3/31/01 are for RISA. The Fund's past performance does not
necessarily indicate how the Fund will perform in the future. The return for the
Fund's classes of shares offered by this prospectus will differ from the returns
shown in the bar chart, depending upon the expenses of that class and any
applicable sales charge. The bar chart does not reflect any sales charge that
you may be required to pay upon purchase or redemption of the Fund's shares. Any
sales charge will reduce your return. The average total return table shows
returns with the maximum sales charge deducted. No sales charge has been applied
to the indices used for comparison in the table.
*Pursuant to an Agreement and Plan of Reorganization, the RISA Fund was
reorganized into the Class A Shares of the Calvert South Africa Fund, which
commenced operations on March 31, 2001. The following performance results for
the Class A Shares of the Calvert South Africa Fund reflect the performance of
the RISA Fund. Please note that although current expenses for the Class A Shares
of the Calvert South Africa Fund are capped at 2.25%, the same as they were for
the RISA Fund, annual total returns for the RISA Fund did not include the
assessment of any sales loads, and therefore actual performance would have
differed.
<PAGE>
Year-by-Year Total Return
at NAV
Best Quarter (of periods shown) Q %
Worst Quarter (of periods shown) Q %
Average Annual Total Returns (as of December 31, 2000)
(with maximum sales charge deducted)
1 year 5 year 10 year1
Calvert South Africa Fund % % N/A
JSE All Shares Index % % N/A
MSCI South Africa Index % % N/A
Lipper Emerging Market Fund Index % % N/A
1Since inception (): Calvert South Africa Fund ______%; and JSE All Shares
Index ______%;
MSCI South Africa Index ______%; and Lipper Emerging Market Fund Index ______%;
<PAGE>
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
Shareholder fees
(paid directly from your account)
Maximum sales charge (load) imposed on purchases 4.75%
(as a percentage of offering price)
Maximum deferred sales charge (load)
(as a percentage of purchase or
redemption proceeds, whichever is lower)
Annual fund operating expenses
(deducted from Fund assets)
Management fees 1.25%
Distribution and service (12b-1) fees 0.25%
Other expenses %
Total annual fund operating expenses 2.21%
Fee waiver and/or expense reimbursement4 1.46%
Net expenses 2.25%
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:
Number of Years Investment is Held
1 Year 3 Years
$_______ $_______
<PAGE>
Annual Fund Operating Expenses
1 Expenses are based on estimates for the Fund's current fiscal year, unless
otherwise indicated. Management fees include the Subadvisory fees paid by the
Advisor to the Subadvisors, and the administrative fee paid by the Fund to
Calvert Administrative Services Company, an affiliate of Calvert Asset
Management Company, Inc.
<PAGE>
NVESTMENT PRACTICES AND RISKS
African Economies
The economies of individual African countries may differ from the US economy in
growth of gross domestic product or gross national product, rate of inflation,
capital reinvestment, resource self-sufficiency, structural unemployment, and
balance of payments position. The economies of African countries may also be
affected to a greater extent than in other countries by price fluctuations of a
single commodity. Severe cyclical climactic conditions, particularly drought,
may also affect the economies of African countries. Business entities in some
African countries do not have a significant history of operating in
market-oriented economies, and the ultimate impact of some African countries'
attempts to move toward more market-oriented economies is currently unclear.
The South African economy is substantially more developed than that of other
African countries. The Advisor expects most of the Fund's assets to be invested
in South Africa. The Fund's performance may be significantly affected by the
economic, social, and political developments in South Africa.
African Securities Markets
The securities markets of African countries are comparatively small, with the
majority of market capitalization and trading volume concentrated in a small
number of companies. In many African countries, including South Africa and
Zimbabwe, a small number of institutional investors hold positions in
publicly-held companies in that particular country representing a substantial
portion of the total market capitalization of listed securities. This factor,
together with significant exchange control limitations on the ability of such
investors to invest outside their home countries and the increased investment in
certain African issuers by foreign investors, will limit the securities
available for purchase by the Fund. These factors may cause the Fund's
investment portfolio to experience greater price volatility and lower liquidity
than a portfolio invested only in securities of a US company.
Trading volume in African securities is substantially less than that in the
United States. During periods of price volatility and low liquidity in the
markets, securities settlements and clearance may be subject to delays and
related administrative uncertainties, such as share registration and delivery
delays. This could result in temporary periods when Fund assets are not
invested and no return is earned.
Currency Risks
Foreign securities involve currency risks. The US dollar value of a foreign
security tends to decrease when the value of the dollar rises against the
foreign currency in which the security is denominated and tends to increase when
the value of the dollar falls against such currency. Fluctuations in exchange
rates may also
<PAGE>
affect the earning power and asset value of the foreign entity issuing the
security. Restrictions on capital flows may be imposed. Losses and other
expenses may be incurred in converting between various currencies in connection
with purchases and sales of foreign securities.
General Foreign Security Risks
There are substantial and different risks involved in investing in foreign
securities. You should consider these risks carefully. For example, there is
generally less publicly available information about foreign companies than is
available about companies in the US. Foreign companies are not subject to
uniform audit and financial reporting standards, practices and requirements
comparable to those in the US.
Foreign stock markets are generally not as developed or efficient as those in
the US. In most foreign markets volume and liquidity are less than in the US
and, at times, volatility of price can be greater than that in the US.
Commissions on foreign stock exchanges are generally higher than on US
exchanges. There is generally less government supervision and regulation of
foreign stock exchanges, brokers and companies than in the US.
The dividends and interest payable on certain of the Fund's foreign securities
may be subject to foreign withholding taxes, thus reducing the net amount
available for distribution to the Fund's shareholders. You should understand
that the expense ratio of the Fund can be expected to be higher than those of
investment companies investing only in domestic securities since the costs of
operations are higher.
There is also the possibility of adverse change in investment or exchange
control regulations, nationalization, expropriation or confiscatory taxation,
limitations on the removal of funds or other assets, political or social
instability, or diplomatic developments which could adversely affect
investments, assets or securities transactions of the Fund. In the event of
expropriation, nationalization, or other confiscation, the Fund could lose its
entire investment in the country involved.
Securities of foreign issuers often are less liquid and more volatile than
securities of comparable U.S. issuers. Because the Fund invests primarily in
South Africa, it will be subject to foreign investment risks which include
possible political and economic instability, seizure or nationalization of
foreign holdings or the adoption of governmental restrictions that adversely
affect or restrict the payment of principal and interest on securities to
investors located outside of South Africa. South Africa is a developing country,
and its economy is less diversified and mature, and its political system is less
stable, than those of developed countries. The markets of developing countries
such as South Africa generally will be more
<PAGE>
volatile than the markets of more mature economies; however, such markets may
provide higher rates of return to investors. Furthermore, there may be less
publicly available information about South African companies than about U.S.
companies, and South African companies are not subject to accounting, auditing
and financial reporting standards and requirements comparable to those to which
U.S. companies are subject. Brokerage commissions and other transaction costs on
South African securities exchanges may be higher than in the U.S.
Foreign Currency Risk
The value of the Fund's assets, as measured in U.S. dollars, will fluctuate with
changes in currency rates. Currency exchange rates may fluctuate significantly
over a short period of time.They generally are determined by the forces of
supply and demand in the foreign exchange markets and the relative merits of
investments in different countries, actual or perceived changes in interest
rates and other complex factors. Currency exchange rates also can be affected by
intervention by U.S. or foreign governments or central banks, or the failure to
intervene, or by currency controls or political developments in the United
States or abroad.
Fixed Income Security Risk
The market value of fixed income securities, such as South African government
debt obligations, will change in response to interest rate changes and other
factors. During periods of falling interest rates, the value of outstanding
fixed income securities generally rises. During periods of rising interest
rates, the value of such securities generally declines. While securities with
longer maturities tend to produce higher yields, the prices of longer maturity
securities are also subject to greater market fluctuations as a result of
changes in interest rates. Changes by recognized agencies in the credit rating
of any fixed income security and in the ability of an issuer to make payments of
interest and principal also affect the value of these investments. Changes in
the value of the Fund's debt securities will affect the net asset value of the
Fund's shares.
Hedging Risk
Although not a principal investment strategy, the Fund is permitted to invest in
derivatives which are financial instruments that derive their performance, at
least in part, from the performance of an underlying asset, index, currency or
interest rate. The derivatives the Fund may use include options and futures.
While derivatives can be used effectively to further the Fund's investment
objective, under certain market conditions, they can increase the volatility of
the Fund's net asset value, decrease the liquidity of the Fund's portfolio or
make the accurate pricing of the Fund's portfolio more difficult. The primary
risks associated with the Fund's use of futures and options are (1) the failure
to predict accurately the direction of stock prices, interest rates, currency
movements and other economic factors; (2) the failure as hedging techniques in
cases where the
<PAGE>
price movements of the securities underlying the options and futures do not
follow the price movements of the portfolio securities subject to the hedge; (3)
the potentially unlimited loss from investing in futures contracts; and (4) the
likelihood of the Fund being unable to control losses by closing its position
where a liquid secondary market does not exist. The risk that the Fund will be
unable to close out a futures position or options contract will be minimized by
the Fund only entering into futures contracts or options transactions on
national exchanges and for which there appears to be a liquid secondary market.
<PAGE>
Investment Practices and Related Risks Table
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, the
table below shows the Fund's limitations as a percentage of its assets and the
principal types of risk involved. (See the pages following the table for a
description of the types of risks). Numbers in this table show maximum allowable
amount only; for actual usage, consult the Fund's annual/semi-annual reports.
Key to Table
J Fund currently uses
q Permitted, but not typically used
(% of assets allowable, if restricted)
8 Not permitted
xN Allowed up to x% of Fund's net assets
xT Allowed up to x% of Fund's total assets
Investment Practices
Active Trading Strategy/Turnover involves selling a security soon after
purchase. An active trading strategy causes a fund to have higher portfolio
turnover compared to other funds and higher transaction costs, such as
commissions and custodian and settlement fees, and may increase a Fund's tax
liability.
Risks: Opportunity, Market and Transaction.
q
Temporary Defensive Positions.
During adverse market, economic or political conditions, the Fund may depart
from its principal investment strategies by increasing its investment in US
government securities and other short-term interest-bearing securities. During
times of any temporary defensive positions, a Fund may not be able to achieve
its investment objective. Risks: Opportunity.
q
Conventional Securities
Foreign Securities. Securities issued by companies located outside the US and/or
traded primarily on a foreign exchange. Risks: Market, Currency, Transaction,
Liquidity, Information and Political.
J
Emerging Market. Securities issued by companies located in those countries whose
economies and capital markets are not as developed as those of more
industrialized nations. Risks: Market, Currency, Transaction, Liquidity,
Information, and Political.
J
<PAGE>
Investment Practices and Related Risks (cont'd)
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. Risks: Market, Liquidity and Information.
J
Investment grade bonds. Bonds rated BBB/Baa or higher or comparable unrated
bonds.
Risks: Interest Rate, Market and Credit.
g
[20T]
Below-investment grade bonds. Bonds rated below BBB/Baa or comparable unrated
bonds are considered junk bonds. They are subject to greater credit risk than
investment grade bonds. Risks: Credit, Market, Interest Rate, Liquidity and
Information.
g
[20T1]
Unrated debt securities. Bonds that have not been rated by a recognized rating
agency; the Advisor has determined the credit quality based on its own research.
Risks: Credit, Market, Interest Rate, Liquidity and Information.
g
[20T1]
Illiquid securities. Securities which cannot be readily sold because there is no
active market.
Risks: Liquidity, Market and Transaction.
J
[15N]
Leveraged Derivative Instruments
Currency contracts. Forward contracts involving the right or obligation to buy
or sell a given amount of foreign currency at a specified price and future date.
Risks: Currency, Leverage, Correlation, Liquidity and Opportunity.
g
Options on securities and indices. Contracts giving the holder the right but not
the obligation to purchase or sell a security (or the cash value, in the case of
an option on an index) at a specified price within a specified time. In the case
of selling (writing) options, the Fund will write call options only if it
already owns the security (if it is "covered"). Risks: Interest Rate, Currency,
Market, Leverage, Correlation, Liquidity, Credit and Opportunity.
[5T2]
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. Risks:
Interest Rate, Currency, Market, Leverage, Correlation, Liquidity and
Opportunity.
g
[5T]
1 20% limit applies to all fixed-income, all of which may be below
investment grade.
2 Based on net premium payments.
<PAGE>
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.
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.
<PAGE>
Management risk
The risk that a Fund's portfolio management practices may not work to achieve
their desired result.
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.
Shareholder Advocacy and Social Responsibility
The Fund takes a proactive role to make a tangible positive contribution to our
society and that of future generations. The Fund seeks to positively influence
corporate behavior through its role as a shareholder by pushing companies toward
higher standards of social and environmental responsibility. Activities may
include but are not limited to:
Proxy voting
As a shareholder in the various portfolio companies, the Fund is guaranteed an
opportunity each year to express its views on issues of corporate governance and
social responsibility at annual stockholder meetings. Voting is a serious
responsibility and all proxies will be voted consistent with the financial and
social objectives of the Fund.
About Calvert
Calvert Asset Management Company ("CAMCO"), 4550 Montgomery Avenue, Suite 1000N,
Bethesda, MD 20814 is the Fund's advisor. CAMCO manages the US dollar portion of
the Fund's cash reserves. Calvert Group Ltd. wholly owns CAMCO. CAMCO has been
managing mutual funds since 1976. CAMCO is the investment advisor for over 25
mutual funds, including the first and largest family of socially screened funds.
As of December 31, 1999,
<PAGE>
CAMCO had over $6.5 billion in assets under management. CAMCO uses a team
approach to its cash management of the Fund. Reno J. Martini, Senior Vice
President and Chief Investment Officer, heads this team and oversees the
investment management of all Calvert Funds for CAMCO. Mr. Martini has over 15
years of experience in the investment industry and has been the head of CAMCO's
asset management team since 1985.
Subadvisors
Reinvest South Africa ("RISA") Investment Advisers, LLC located in Philadelphia,
PA was formed in 1997 by Sam Folin. Mr. Folin has twenty-four years of
experience in the investment industry and extensive experience in South Africa
consulting with non-profit organizations on governance, fund raising, planning
and financial management.
African Harvest Asset Managers Limited, located in Newlands, South Africa was
formed in 1997 and provides investment management services to South African
clients including union retirement funds. African Harvest Asset Managers Limited
employs 21 investment professionals within various teams The company has
multi-racial ownership, management and staff. The firm has $1 billion under
management and has established a record of investment excellence in South
African capital markets.
Denzil Newman, Senior Portfolio Manager, of African Harvest will lead a team
responsible for the day-to-day management of the Fund's investments. Mr. Newman
has been an analyst and fund manager for over twenty years and previously
managed the Community Growth Fund and other large unit trusts and pension funds
at Syfrets Managed Assets in Cape Town.
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 annual advisory fee paid to the Advisor by the Fund will be 1.05% of the
Fund's average daily net assets.
<PAGE>
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.
With 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 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 $50,000,4 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*
4 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.
<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, and the amount actually paid by the Fund for the most recent
fiscal year.
Maximum Payable under Plan
0.35%
<PAGE>
NEXT STEP - ACCOUNT APPLICATION
Complete and sign an application for each new account. For more information,
contact your financial professional or our shareholder services department at
800-368-2748.
Minimum To Open an Account Minimum additional
$5,000 investments -[$250]
Please make your check payable
to the Fund and mail it to:
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 Street
Kansas City, MO 64105-1807
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 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.
<PAGE>
The Fund holds securities that are primarily listed on foreign exchanges that
trade on days when the NYSE is closed. The Fund does not price shares on days
when the NYSE is closed, even if foreign markets may be open. As a result, the
value of the Fund's shares may change on days when you will not be able to buy
or sell your shares.
When Your Account Will Be Credited
Your purchase will be processed at the next NAV calculated after your order is
received in good order. All of your purchases must be made in US dollars. No
cash or third party checks will be accepted. No credit card or credit loan
checks will be accepted. The 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. Any check purchase received without an
investment slip may cause delayed crediting. Any purchase less than the $250
minimum for subsequent investment will be charged a service fee of $3. 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).
OTHER CALVERT GROUP FEATURES
Calvert Information Network
For 24 hour performance and account information call 800-368-2745 or visit
www.calvert.com
You can obtain current performance and pricing information, verify account
balances, and authorize certain transactions with the convenience of one phone
call, 24 hours a day.
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
<PAGE>
two business days after you place your request for the transfer to take place.
Money transferred to purchase new shares will 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. You may request this service on your initial
account application. Calvert Money Controller transactions returned for
insufficient funds will incur a $25 charge.
Telephone Transactions
You may purchase, redeem, or exchange shares, wire funds and use Calvert Money
Controller by telephone if you have pre-authorized service instructions. You
receive telephone privileges automatically when you open your account unless you
elect otherwise. For our mutual protection, the Fund, the shareholder servicing
agent and their affiliates use precautions such as verifying shareholder
identity and recording telephone calls to confirm instructions given by phone. A
confirmation statement is sent for most transactions; please review this
statement and verify the accuracy of your transaction immediately.
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.
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 charge.
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.
<PAGE>
Each 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, each 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 broker or agent.
Minimum Account Balance
Please maintain a balance in each of your Fund accounts of at least $1,000 per
class. If the balance in your account falls below the minimum during a month,
your account may be closed and the proceeds mailed to the address of record. You
will receive notice that your account is below the minimum, and will be closed
if the balance is not brought up to the required minimum amount within 30 days.
<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 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. If this TIN
information is not received within 60 days after your account is established,
your account may be redeemed (closed) at the current NAV on the date of
redemption. 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, provided the amount requested is not on hold. When you purchase by
check or with Calvert Money Controller (electronic funds transfer), the purchase
will 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 next NAV calculated after your redemption request is
received (less any applicable CDSC). 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
<PAGE>
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.
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. A charge of $5 may be imposed on wire transfers of
less than $1,000.
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.
Systematic Check Redemptions
If you maintain an account with a balance of $10,000 or more, you may have up to
two (2) redemption checks for a fixed amount sent to you on the 15th of the
month, simply by sending a letter with all information, including your account
number, and the dollar amount ($100 minimum). If you would like a regular check
mailed to another person or place, 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>
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. Please
note: Notarization is not the equivalent of a signature guarantee.
Transactions are processed at the next determined share price after the transfer
agent has received all required information.
<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"),
<PAGE>
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)
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, MD 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."
Prior Calvert New Africa Fund and RISA Fund Shareholders
Shares of Calvert South Africa Fund may be sold at net asset value if your
account was established as of the merger date.
Dividends and Capital Gain Distributions from other Calvert Group Funds
You may prearrange to have your dividends and capital gain distributions from
another Calvert Group Fund automatically invested in another account with no
additional sales charge.
<PAGE>
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.
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) when you
purchase shares of non-money market funds. 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
4.00%/0.25%
Occasionally, CDI may reallow to dealers the full Class A 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 Fund 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 of up to 1% on certain
Class A shares purchased at NAV. Call 800-368-2750 for more information. Where
paid, the finder's fee is 1% of the NAV purchase amount on the first $2 million,
.80% on $2 to $3 million, .50% on $3 to $50 million, .25% on $50 to $100
million, and .15% over $100 million. 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
Calvert Information Network
24 hours, 7 days a week
800-368-2745
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
Calvert Group Web-Site
Address: 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 Fund by contacting your financial professional,
or the Fund at:
Calvert Group
4550 Montgomery Avenue
Suite 1000N
Bethesda, MD 20814
Telephone: 1-800-368-2745
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- 10045
<PAGE>
Calvert Impact Fund, Inc.
Calvert South Africa Fund
4550 Montgomery Avenue, Bethesda, Maryland 20814
Statement of Additional Information
March 31, 2001
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 Statement of Additional Information ("SAI") is not a prospectus.
Investors should read the Statement of Additional Information in conjunction
with the Fund's Prospectus, dated March 31, 2001. The prospectus and the most
recent shareholder report may be obtained free of charge by writing the Fund at
the above address, calling the Fund or by visiting our website at
www.calvert.com.
TABLE OF CONTENTS
Investment Policies and Risks 2
Investment Restrictions 9
Dividends, Distributions and Taxes 10
Net Asset Value 11
Calculation of Total Return 12
Advertising 12
Purchase and Redemption of Shares 12
Directors and Officers 13
Investment Advisor and Subadvisors 14
Administrative Services Agent 15
Transfer and Shareholder Servicing Agents 16
Method of Distribution 16
Portfolio Transactions 17
Personal Securities Transactions 17
Independent Accountants and Custodians 18
General Information 18
Appendix 19
<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 directly, on
foreign markets, or those represented by American Depositary Receipts ("ADRs"),
or other receipts evidencing ownership of foreign securities, such as
International Depositary Receipts and Global Depositary Receipts. ADRs are US
dollar-denominated and traded in the US on exchanges or over-the-counter. If the
Fund invests in an ADR rather than directly in a foreign issuer's stock, the
Fund may possibly avoid some currency and some liquidity risks. The information
available for ADRs is subject to the more uniform and more exacting accounting,
auditing and financial reporting standards of the domestic market or exchange on
which they are traded.
Additional costs may be incurred in connection with international
investment since foreign brokerage commissions and the custodial costs
associated with maintaining foreign portfolio securities are generally higher
than in the United States. Fee expense may also be incurred on currency
exchanges when the Fund changes investments from one country to another or
converts foreign securities holdings into US dollars.
United States Government policies have at times, in the past, through
imposition of interest equalization taxes and other restrictions, discouraged
certain investments abroad by United States investors. In addition, foreign
countries may impose withholding and taxes on dividends and interest.
Since investments in securities of issuers domiciled in foreign countries
usually involve currencies of the foreign countries, and since the Fund may
temporarily hold funds in foreign currencies during the completion of investment
programs, the value of the assets of the Fund as measured in United States
dollars may be affected favorably or unfavorably by changes in foreign currency
exchange rates and exchange control regulations. For example, if the value of
the foreign currency in which a security is denominated increases or declines in
relation to the value of the US dollar, the value of the security in U.S.
dollars will increase or decline correspondingly.
Emerging Market Securities. Investing in emerging markets in particular,
those countries whose economies and capital markets are not as developed as
those of more industrialized nations, carries its own special risks. Investments
in these countries may be riskier, and will be subject to erratic and
abrupt price movements. Some economies are less well developed and less
diverse, and more vulnerable to the ebb and flow of international trade, trade
barriers and other protectionist or retaliatory measures. Many of these
countries are grappling with severe inflation or recession, high levels of
national debt, and currency exchange problems. Investments in countries that
have recently begun moving away from central planning and state-owned
industries toward free markets should b regarded as speculative. Among other
risks, the economies of such countries may be affected to a greater extent than
in other countries by price fluctuations of a single commodity, by severe
cyclical climactic conditions, lack of significant history in operating under
a market-oriented economy, or by political instability, including risk
of expropriation.
Certain emerging market countries have historically experienced, and
May continue to experience, high rates of inflation, high interest rates,
Exchange rate fluctuations, large amounts of external debt, balance of payments
and trade difficulties and extreme poverty and unemployment. The issuer or
governmental authority that controls the repayment of an emerging market
country's debt may not be able or willing to repay the principal and/or
interest when due in accordance with the terms of such debt. As a result
of the foregoing, a government obligor may default on its obligations. If such
an event occurs, a Fund may have limited legal recourse against the issuer
and/or guarantor. Remedies must, in some cases, be pursued in the courts of the
defaulting party itself, and the ability of the holder of foreign
government fixed income securities to obtain recourse may be subject to the
political climate in the relevant country.
Forward Currency Exchange Contracts. The Fund will conduct its foreign
currency exchange transactions either on a spot (i.e., cash) basis at the spot
rate prevailing in the foreign exchange market, or through entering into forward
contracts to purchase or sell foreign currencies. It may also use foreign
currency options and futures. See below. A forward foreign currency contract
involves an obligation to purchase or sell a specific currency at a future date
which may be any fixed number of days from the date of the contract agreed upon
by the parties, at a price set at the time of the contract. These contracts are
traded in the interbank market conducted directly between currency traders
(usually large, commercial banks) and their customers. A forward foreign
currency contract generally has no deposit requirement, and no commissions are
charged at any stage for trades, although they do realize a profit based on the
difference (the "spread") between the prices at which they are buying and
selling various currencies.
The Fund may enter into forward foreign currency contracts for two reasons.
First, the Fund may desire to preserve the United States dollar price of a
security when it enters into a contract for the purchase or sale of a security
denominated in a foreign currency. The Fund may be able to protect itself
against possible losses resulting from changes in the relationship between the
United States dollar and foreign currencies during the period between the date
the security is purchased or sold and the date on which payment is made or
received by entering into a forward contract for the purchase or sale, for a
fixed amount of dollars, of the amount of the foreign currency involved in the
underlying security transactions.
Second, when the Advisor or Subadvisor believes that the currency of a
particular foreign country may suffer a substantial decline against the United
States dollar, the Fund may enter into a forward foreign currency contract to
sell, for a fixed amount of dollars, the amount of foreign currency
approximating the value of some or all of the Fund's securities denominated in
such foreign currency. The precise matching of the forward foreign currency
contract amounts and the value of the Fund's securities involved will not
generally be possible since the future value of the securities will change as a
consequence of market movements between the date the forward contract is entered
into and the date it matures. The projection of short-term currency market
movement is difficult, and the successful execution of this short-term hedging
strategy is uncertain. Although forward foreign currency contracts tend to
minimize the risk of loss due to a decline in the value of the hedged currency,
at the same time they tend to limit any potential gain which might result should
the value of such currency increase.
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,
US government and agency obligations, certificates of deposit, banker's
acceptances, time deposits commercial paper, short-term corporate debt
securities, and repurchase agreements.
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. 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 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 Fund
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.
African Sovereign Debt
The Fund may invest up to 20% of its assets in fixed-income securities.
These include but are not limited to, foreign government obligations -- debt
securities issued and backed by the respective government bodies. In terms of
their government backing, these securities will structurally resemble US
Government and US Government agency issues. In many instances the debt issues of
African sovereignties represent low quality securities and may be comparable to
securities rated below investment-grade. Because of their speculative
characteristics, they trade at substantial discounts from face value, but may
offer substantial long-term capital appreciation.
Non-Investment Grade Debt Securities
Non-investment grade debt securities are 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.) These securities involve greater risk of default or
price declines due to changes in the issuer's creditworthiness than
investment-grade debt securities. Because the market for lower-rated securities
may be thinner and less active than for higher-rated securities, there may be
market price volatility for these securities and limited liquidity in the resale
market. Market prices for these securities may decline significantly in periods
of general economic difficulty or rising interest rates. Unrated debt securities
may fall into the lower quality category. Unrated securities usually are not
attractive to as many buyers as rated securities are, which may make them less
marketable.
The quality limitation set forth in the Fund's investment policy is
determined immediately after the Fund's acquisition of a given security.
Accordingly, any later change in ratings will not be considered when determining
whether an investment complies with the Fund's investment policy.
When purchasing high-yielding securities rated or unrated, the Advisors
prepare their own careful credit analysis to attempt to identify those issuers
whose financial condition is adequate to meet future obligations or is expected
to be adequate in the future. Through Fund diversification and credit analysis,
investment risk can be reduced, although there can be no assurance that losses
will not occur.
Derivatives
The Fund can use various techniques to increase or decrease its exposure to
changing security prices, interest rates, or other factors that affect security
values. These techniques may involve derivative transactions such as buying and
selling options and futures contracts and leveraged notes, entering into swap
agreements, and purchasing indexed securities. The Fund can use these practices
either as substitution or as protection against an adverse move in the Fund to
adjust the risk and return characteristics of the Fund. 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 the Fund and may involve a
small investment of cash relative to the magnitude of the risk assumed.
Derivatives are often illiquid.
Options and Futures Contracts
The Fund may, in pursuit of its respective investment objectives, purchase
put and call options and engage in the writing of covered call options and
secured put options on securities, and employ a variety of other investment
techniques. Specifically, the Fund may also engage in the purchase and sale of
stock index future contracts, foreign currency futures contracts, interest rate
futures contracts, and options on such futures, as described more fully below.
The Fund may engage in such transactions only to hedge the existing
positions. It will not engage in such transactions for the purposes of
speculation or leverage. Such investment policies and techniques may involve a
greater degree of risk than those inherent in more conservative investment
approaches.
The Fund may write "covered options" on securities in standard contracts
traded on national securities exchanges. The Fund may write such options in
order to receive the premiums from options that expire and to seek net gains
from closing purchase transactions with respect to such options.
Put and Call Options. The Fund may purchase put and call options, in standard
contracts traded on national securities exchanges or over-the-counter. The Fund
will purchase such options only to hedge against changes in the value of
securities the Fund holds and not for the purposes of speculation or leverage.
By buying a put, the Fund has the right to sell the security at the exercise
price, thus limiting its risk of loss through a decline in the market value of
the security until the put expires. The amount of any appreciation in the value
of the underlying security will be partially offset by the amount of the premium
paid for the put option and any related transaction costs. Prior to its
expiration, a put option may be sold in a closing sale transaction and any
profit or loss from the sale will depend on whether the amount received is more
or less than the premium paid for the put option plus the related transaction
costs.
The Fund may purchase call options on securities. Such transactions may be
entered into in order to limit the risk of a substantial increase in the market
price of the security which the Fund intends to purchase. Prior to its
expiration, a call option may be sold in a closing sale transaction. Any profit
or loss from such a sale will depend on whether the amount received is more or
less than the premium paid for the call option plus the related transaction
costs.
Covered Options. The Fund may write only covered options on equity and debt
securities in standard contracts traded on national or foreign securities
exchanges. This means that, in the case of call options, so long as the Fund is
obligated as the writer of a call option, the Fund will own the underlying
security subject to the option and, in the case of put options, the Fund will,
through its custodian, deposit and maintain either cash or securities with a
market value equal to or greater than the exercise price of the option.
When the Fund writes a covered call option, the Fund gives the purchaser
the right to purchase the security at the call option price at any time during
the life of the option. As the writer of the option, the Fund receives a
premium, less a commission, and in exchange foregoes the opportunity to profit
from any increase in the market value of the security exceeding the call option
price. The premium serves to mitigate the effect of any depreciation in the
market value of the security. Writing covered call options can increase the
income of the Fund and thus reduce declines in the net asset value per share of
the Fund if securities covered by such options decline in value. Exercise of a
call option by the purchaser however will cause the Fund to forego future
appreciation of the securities covered by the option.
When the Fund writes a covered put option, it will gain a profit in the
amount of the premium, less a commission, so long as the price of the underlying
security remains above the exercise price. However, the Fund remains obligated
to purchase the underlying security from the buyer of the put option (usually in
the event the price of the security falls below the exercise price) at any time
during the option period. If the price of the underlying security falls below
the exercise price, the Fund may realize a loss in the amount of the difference
between the exercise price and the sale price of the security, less the premium
received.
The Fund may purchase securities which may be covered with call options
solely on the basis of considerations consistent with the investment objectives
and policies of the Fund. The Fund's turnover may increase through the exercise
of a call option; this will generally occur if the market value of a "covered"
security increases and the Fund has not entered into a closing purchase
transaction.
Risks Related to Options Transactions. The Fund can close out its
respective positions in exchange-traded options only on an exchange which
provides a secondary market in such options. Although the Fund intends to
acquire and write only such exchange-traded options for which an active
secondary market appears to exist, there can be no assurance that such a market
will exist for any particular option contract at any particular time. This might
prevent the Fund from closing an options position, which could impair the Fund's
ability to hedge effectively. The inability to close out a call position may
have an adverse effect on liquidity because the Fund may be required to hold the
securities underlying the option until the option expires or is exercised.
Over-the-Counter ("OTC") Options. OTC options differ from exchange-traded
options in several respects. They are transacted directly with dealers and not
with a clearing corporation, and there is a risk of non-performance by the
dealer. However, the premium is paid in advance by the dealer. OTC options are
available for a greater variety of securities and foreign currencies, and in a
wider range of expiration dates and exercise prices than exchange-traded
options. Since there is no exchange, pricing is normally done by reference to
information from a market maker, which information is carefully monitored or
caused to be monitored by the Subadvisor and verified in appropriate cases.
A writer or purchaser of a put or call option can terminate it voluntarily
only by entering into a closing transaction. In the case of OTC options, there
can be no assurance that a continuous liquid secondary market will exist for any
particular option at any specific time. Consequently, the Fund may be able to
realize the value of an OTC option it has purchased only by exercising it or
entering into a closing sale transaction with the dealer that issued it.
Similarly, when the Fund writes an OTC option, it generally can close out that
option prior to its expiration only by entering into a closing purchase
transaction with the dealer to which it originally wrote the option. If a
covered call option writer cannot effect a closing transaction, it cannot sell
the underlying security or foreign currency until the option expires or the
option is exercised. Therefore, the writer of a covered OTC call option may not
be able to sell an underlying security even though it might otherwise be
advantageous to do so. Likewise, the writer of a secured OTC put option may be
unable to sell the securities pledged to secure the put for other investment
purposes while it is obligated as a put writer. Similarly, a purchaser of an OTC
put or call option might also find it difficult to terminate its position on a
timely basis in the absence of a secondary market.
The Fund understands the position of the staff of the Securities and
Exchange Commission (the "SEC") to be that purchased OTC options and the assets
used as "cover" for written OTC options are illiquid securities. The Fund has
adopted procedures for engaging in OTC options transactions for the purpose of
reducing any potential adverse effect of such transactions upon the liquidity of
the Fund.
Futures Transactions. The Fund may purchase and sell futures contracts, but only
when, in the judgment of the Subadvisor, such a position acts as a hedge against
market changes which would adversely affect the securities held by the Fund.
These futures contracts may include, but are not limited to, market index
futures contracts and futures contracts based on US Government obligations.
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.
The Fund may only invest in futures contracts to hedge its respective
existing investment positions and not for income enhancement, speculation or
leverage purposes.
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.
Options on Futures Contracts. The Fund may purchase and write put or call
options and sell call options on futures contracts. The Fund may also enter into
closing transactions with respect to such options to terminate an existing
position; that is, to sell a put option already owned and to buy a call option
to close a position where the Fund has already sold a corresponding call option.
The Fund may only invest in options on futures contracts to hedge their
respective existing investment positions and not for income enhancement,
speculation or leverage purposes.
An option on a futures contract gives the purchaser the right, in return
for the premium paid, to assume a position in a futures contract-a long position
if the option is a call and a short position if the option is a put-at a
specified exercise price at any time during the period of the option. The Fund
will pay a premium for such options purchased or sold. In connection with such
options bought or sold, the Fund will make initial margin deposits and make or
receive maintenance margin payments which reflect changes in the market value of
such options. This arrangement is similar to the margin arrangements applicable
to futures contracts described above.
Put Options on Futures Contracts. The purchase of put options on futures
contracts is analogous to the sale of futures contracts and is used to protect
the Fund against the risk of declining prices. The Fund may purchase put options
and sell put options on futures contracts that are already owned by the Fund.
The Fund will only engage in the purchase of put options and the sale of covered
put options on market index futures for hedging purposes.
Call Options on Futures Contracts. The sale of call options on futures contracts
is analogous to the sale of futures contracts and is used to protect the Fund
against the risk of declining prices. The purchase of call options on futures
contracts is analogous to the purchase of a futures contract. The Fund may only
buy call options to close an existing position where the Fund has already sold a
corresponding call option, or for a cash hedge. The Fund will only engage in the
sale of call options and the purchase of call options to cover for hedging
purposes.
Writing Call Options on Futures Contracts. The writing of call options on
futures contracts constitutes a partial hedge against declining prices of the
securities deliverable upon exercise of the futures contract. If the futures
contract price at expiration is below the exercise price, the Fund will retain
the full amount of the option premium which provides a partial hedge against any
decline that may have occurred in the Fund's securities holdings.
Risks of Options and Futures Contracts. If the Fund has sold futures or takes
options positions to hedge against a decline in the market and the market later
advances, the Fund may suffer a loss on the futures contracts or options 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 or option may move more than or less than the price of the
securities being hedged. Where the Fund has sold futures or taken options
positions to hedge against decline in the market, the market may advance and the
value of the securities held in the Fund may decline. If this were to occur, the
Fund might lose money on the futures contracts or options and also experience a
decline in the value of its securities.
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
intends 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.
Options on futures transactions bear several risks apart from those
inherent in options transactions generally. The Fund's ability to close out its
options positions in futures contracts will depend upon whether an active
secondary market for such options develops and is in existence at the time the
Fund seeks to close its positions. There can be no assurance that such a market
will develop or exist. Therefore, the Fund might be required to exercise the
options to realize any profit.
Foreign Currency Transactions. Forward Foreign Currency Exchange Contracts. A
forward foreign currency exchange contract involves an obligation to purchase or
sell a specific currency at a future date, which may be any fixed number of days
("Term") from the date of the contract agreed upon by the parties, at a price
set at the time of the contract. These contracts are traded directly between
currency traders (usually large commercial banks) and their customers.
The Fund will not enter into such forward contracts or maintain a net
exposure in such contracts where it would be obligated to deliver an amount of
foreign currency in excess of the value of its portfolio securities and other
assets denominated in that currency. The Subadvisor believes that it is
important to have the flexibility to enter into such forward contracts when it
determines that to do so is in the Fund's best interests. See above under
"Foreign Securities."
Foreign Currency Options. A foreign currency option provides the option
buyer with the right to buy or sell a stated amount of foreign currency at the
exercise price at a specified date or during the option period. A call option
gives its owner the right, but not the obligation, to buy the currency, while a
put option gives its owner the right, but not the obligation, to sell the
currency. The option seller (writer) is obligated to fulfill the terms of the
option sold if it is exercised. However, either seller or buyer may close its
position during the option period for such options any time prior to expiration.
A call rises in value if the underlying currency appreciates. Conversely, a
put rises in value if the underlying currency depreciates. While purchasing a
foreign currency option can protect the Fund against an adverse movement in the
value of a foreign currency, it does not limit the gain which might result from
a favorable movement in the value of such currency. For example, if the Fund was
holding securities denominated in an appreciating foreign currency and had
purchased a foreign currency put to hedge against a decline in the value of the
currency, it would not have to exercise its put. Similarly, if the Fund had
entered into a contract to purchase a security denominated in a foreign currency
and had purchased a foreign currency call to hedge against a rise in the value
of the currency but instead the currency had depreciated in value between the
date of purchase and the settlement date, it would not have to exercise its call
but could acquire in the spot market the amount of foreign currency needed for
settlement.
Foreign Currency Futures Transactions. The Fund may use foreign currency
futures contracts and options on such futures contracts. Through the purchase or
sale of such contracts, it may be able to achieve many of the same objectives
attainable through the use of foreign currency forward contracts, but more
effectively and possibly at a lower cost.
Unlike forward foreign currency exchange contracts, foreign currency
futures contracts and options on foreign currency futures contracts are
standardized as to amount and delivery period and are traded on boards of trade
and commodities exchanges. It is anticipated that such contracts may provide
greater liquidity and lower cost than forward foreign currency exchange
contracts.
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. 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 their right to vote
upon matters of importance affecting holders of the securities.
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.
(1) The Fund may not make any investment inconsistent with its classification as
a nondiversified investment company under the 1940 Act.
(2) The Fund may not concentrate its investments in the securities of issuers
primarily engaged in any particular industry (other than securities issued or
guaranteed by the U.S. Government or its agencies or instrumentalities and
repurchase agreements secured thereby).
(3) The Fund may not 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 its total assets or as permitted by law and except by engaging in
reverse repurchase agreements, where allowed. In order to secure any permitted
borrowings and reverse repurchase agreements under this section, the Fund may
pledge, mortgage or hypothecate its assets.
(4) The Fund may not underwrite the securities of other issuers, except as
allowed by law or to the extent that the purchase of obligations in accordance
with its investment objective and policies, either directly from the issuer, or
from an underwriter for an issuer, may be deemed an underwriting.
(5) The Fund may not invest directly in commodities or real estate, although it
may invest 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) The Fund may not 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 as permitted by law. 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.
Nonfundamental Investment Restrictions
The Fund's Board of Directors has adopted the following nonfundamental
investment restrictions. A nonfundamental investment restriction can be changed
by the Board at any time without a shareholder vote.
(1) The Fund may not invest, in the aggregate, more than 15% of its net assets
in illiquid securities. Purchases of securities outside the US that are not
registered with the SEC or marketable in the U.S. are not per se illiquid.
(2) The Fund may not write, purchase or sell puts, calls or combinations thereof
except that the Fund may (a) write exchange-traded covered call options on
portfolio securities and enter into closing purchase transactions with respect
to such options, and the Fund may write exchange-traded covered call options on
foreign currencies and secured put options on securities and foreign currencies
and write covered call and secured put options on securities and foreign
currencies traded over the counter, and enter into closing purchase transactions
with respect to such options, (b) purchase exchange-traded call options and put
options and purchase call and put options traded over the counter, provided that
the premiums on all outstanding call and put options do not exceed 5% of its
total assets, and enter into closing sale transaction with respect to such
options, and (c) engage in financial futures contracts and related options
transactions, provided that the sum of the initial margin deposits on the Fund's
existing futures and related options positions and the premiums paid for related
options would not exceed 5% of its total assets.
(3) The Fund may not make short sales of securities or purchase any securities
on margin except that the Fund may obtain such short-term credits as may be
necessary for the clearance of purchases and sales of securities. The deposit or
payment by the Fund of initial or maintenance margin in connection with
financial futures contracts or related options transactions is not considered
the purchase of a security on margin.
Any investment restriction which involves a maximum percentage of
securities or assets (except for fundamental investment restriction three and
nonfundamental investment restriction one) 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 a regulated investment company 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, and pay
taxes on its income and gains rather than passing through its income and gains
to shareholders, so that shareholders also would pay taxes on these same income
and gains.
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% of each reportable redemption
transaction occurring 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 US, a State, the District of Columbia, a US possession, a foreign
government, an international organization, or any political subdivision, agency
or instrumentality of any of the foregoing; US 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 US Government obligations. State law varies considerably
concerning the tax status of dividends derived from US 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 requesting 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 market value of the Fund's
investments. The net asset value per share for each class is determined every
business day as of the close of the regular session of the New York Stock
Exchange (normally 4:00 p.m. Eastern time). 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. Securities primarily
traded on foreign securities exchanges are generally valued at the preceding
closing values on their respective exchanges where primarily traded. Equity
options are valued at the last sale price unless the bid price is higher or the
ask price is lower, in which event such bid or ask price is used. Exchange
traded fixed income options are valued at the last sale price unless there is no
sale price, in which event current prices provided by market makers are used.
Over-the-counter fixed income options are valued based upon current prices
provided by market makers. Financial futures are valued at the settlement price
established each day by the board of trade or exchange on which they are traded.
Because of the need to obtain prices as of the close of trading on various
exchanges throughout the world, the calculation of the Fund's net asset value
does not take place contemporaneously with the determination of the prices of
U.S. portfolio securities. For purposes of determining the net asset value, all
assets and liabilities initially expressed in foreign currency values will be
converted into United States dollar values at the mean between the bid and
offered quotations of such currencies against United States dollars as last
quoted by any recognized dealer. If an event were to occur after the value of an
investment was so established but before the net asset value per share was
determined which could materially change the net asset value, then the
instrument would be valued using fair value consideration by the Directors or
their delegates.
CALCULATION OF TOTAL RETURN
---------------------------
The Fund may advertise "total return." Total return is calculated
separately for each class. Total return is computed 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, except quotations of "return without maximum load," (or "without
CDSC") which do not deduct sales charge. Return without maximum load, which will
be higher than total return, should be considered only by investors, such as
participants in certain pension plans, to whom the sales charge does not apply,
or for purposes of comparison only with comparable figures which also do not
reflect sales charges, such as Lipper averages.
ADVERTISING
-----------
The Fund or its affiliates may provide information such as, but not limited
to, the economy, investment climate, investment principles and rationale,
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 portfolio holdings or give examples or securities that may have
been considered for inclusion in the Portfolio, 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, Russell
2000/Small Stock Index, Mutual Fund Values Morningstar Ratings, Mutual Fund
Forecaster, Barron's, The Wall Street Journal, and Schabacker Investment
Management, Inc. Such averages generally do not reflect any front- or back-end
sales charges that may be charged by Funds in that grouping. The Fund may also
cite to any source, whether in print or on-line, such as Bloomberg, in order to
acknowledge origin of information. 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. The Fund, its Advisor, and its affiliates reserve the right to
update performance rankings as new rankings become available.
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, 2000). Calvert Group was also the
first to offer a family of socially responsible mutual fund portfolios.
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.)
Fund shares shall be distributed through third party brokers. See the prospectus
for more details on purchases and redemptions.
DIRECTORS AND OFFICERS
----------------------
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 Directors.
Principal
Occupation(s) During
Name, Address & Date of Birth Position with Fund Last 5 Years
Rebecca Adamson, Director President of the National
DOB: 09/10/47 non-profit, First Nations
Financial Project.
Miles Douglas Harper, III Director Partner
DOB: 10/16/62 Gainer Donnelly & Desroches
since January 1999. Prior
to that Mr. Harper was
Vice President, Wood,
Harper, PC.
Joy V. Jones, Esq., Director Attorney and entertainment
DOB: 07/02/50 manager in New York City.
*Barbara J. Krumsiek, Director President, Chief Executive
DOB: 08/09/52 Officer and Vice Chairman
of Calvert Group, Ltd. Prior
to joining Calvert Group, in
1997, Ms. Krumsiek served
as a Managing Director of
Alliance Fund Distributors,
Inc. since 1974.
*D. Wayne Silby, Director President of Calvert Social
DOB: 07/20/48 Investment Fund. Mr. Silby is
also Executive Chairman of
Group Serve, Inc., an internet
company focused on community
building collaborative tools.
Reno J. Martini, Director Senior Vice President of
DOB: 01/13/50 Calvert 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
DOB: 07/24/52 Chief Financial Officer of
Calvert Group, Ltd.
--------------------------------------------------------------------------------
*William M. Tartikoff, Esq. Director Senior Vice President,
DOB: 08/12/47 Secretary, and General Counsel
of Calvert Group, Ltd.
--------------------------------------------------------------------------------
Susan Walker Bender, Esq. Officer Associate General Counsel
DOB: 01/29/59 of Calvert Group, Ltd.
--------------------------------------------------------------------------------
Ivy Wafford Duke, Esq. Officer Associate General Counsel
DOB: 09/07/68 of Calvert Group, Ltd. Prior to
joining Calvert Group in 1996,
Ms. Duke had been an Associate
in the Investment Management
Group of the Business and
Finance Department at Drinker
Biddle & Reath since 1993.
--------------------------------------------------------------------------------
Victor Frye, Esq. Officer Counsel and Compliance Officer
DOB: 10/15/58 of Calvert Group, Ltd. Prior to
joining Calvert Group in 1999,
Mr. Frye had been Counsel
and Manager of the Compliance
Department at The Advisors
Group since 1986.
--------------------------------------------------------------------------------
Jennifer Streaks, Esq. Officer Assistant General Counsel of
DOB: 08/02/71 Calvert Group, Ltd. Prior to
joining Calvert Group in
1999, Ms. Streaks had been a
Regulatory Analyst in the
Market Regulation Department
of the National Association
of Securities Dealers since
1997. Prior to this,
Ms. Streaks had been a law
clerk to the Honorable
Maurice Foley at the U.S.
Tax Court for the year since
graduating from Howard
University School of Law,
where she was a student
1993-1996.
--------------------------------------------------------------------------------
Michael V. Yuhas Jr., CPA Officer Director of Fund
DOB: 08/04/61 Administration of
Calvert Group, Ltd.
--------------------------------------------------------------------------------
The address of Director 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.
Each of the Directors 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. Each of the above Directors
marked with an , is also a Director or Officer of one or more other investment
companies in the Calvert Group of Funds.
Directors of the Fund not affiliated with the Advisor presently receive an
annual fee of $5,000 for service as a member of the Board of Directors of the
Calvert Group for Funds, and a fee of $750 to $1,500 for each regular Board or
Committee meeting attended; such fees are allocated among the respective
Portfolios on the basis of net assets.
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 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, 4550
Montgomery Avenue, suite 1000N, Bethesda, Maryland 20814, a subsidiary of Acacia
Mutual 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;
shareholders' meeting expenses; and brokerage commissions and other costs
associated with the purchase and sale of portfolio securities.
Subadvisors
Reinvest South Africa ("RISA") Investment Advisers, LLC located in
Philadelphia, PA was formed in 1997 by Sam Folin. It receives a subadvisory fee,
paid by the Advisor of 0.40% of net assets it manages.
African Harvest Asset Managers Limited, located in Newlands, South Africa
was formed in 1997 and provides investment management services to South African
clients including union retirement funds. It receives a subadvisory fee, paid by
the Advisor, of 0.40% of net assets it manages.
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 change 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.
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 of 0.20% of
average daily net asset.
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 based on number of the
shareholder accounts and transactions.
METHOD OF DISTRIBUTION
----------------------
Calvert Distributors, Inc. ("CDI") and BOE Securities, Inc. are the
principal underwriters and distributors for the Fund. CDI is an affiliate of
CAMCO. BOE Securities is a registered broker-dealer firm located at 225 South
15th Street, Suite 928, Philadelphia, PA 19102. Under the terms of its
underwriting agreement with the Fund, the distributor 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 a Distribution Plan (the "Plans") that permits the Fund to pay
Certain expenses associated with the distribution and servicing of its shares.
Such expenses for Class A, Class B, Class C and Class I shares may not exceed,
on an annual basis, 0.35% of the Fund's respective average daily net assets.
The Fund's Distribution Plan was 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 Plan or in any agreements
related to the Plan. 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 Plan, the Directors considered
various factors including the amount of the distribution expenses. The Directors
determined that there is a reasonable likelihood that the Plan 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 Plan may be terminated by vote of a majority of the non-interested
Directors who have no direct or indirect financial interest in the Plan, or by
vote of a majority of the outstanding shares of the Fund. Any change in the Plan
that would materially increase the distribution cost to the Fund requires
approval of the shareholders of the Fund; otherwise, the Plan may be amended by
the Directors, including a majority of the non-interested Directors as described
above. The Plan 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 Plan or interested persons of any such
party and who have no direct or indirect financial interest in the Plan, and
(ii) the vote of a majority of the entire Board of Directors.
Apart from the Plan, the Advisor and the distributor, at their own expense,
may incur costs and pay expenses associated with the distribution of shares of
the Fund. The Advisor and/or distributor has agreed to 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 services fees.
The distributor, makes a continuous offering of the Fund's securities on a "best
efforts" basis. Under the terms of the agreement, the distributor is entitled to
receive, pursuant to the Distribution Plan, a distribution fee and a service fee
from the Fund based on the average daily net assets. These fees are paid
pursuant to the Fund's Distribution Plan.
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%
The distributor receives any front-end sales charge 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.
PORTFOLIO TRANSACTIONS
----------------------
Fund 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 Subadvisors 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 Subadvisors of the Fund. Such services include
portfolio attribution systems, return-based style analysis, and trade-execution
analysis. The Advisor or Subadvisors may also direct selling concessions and/or
discounts in fixed-price offerings for research services.
If, in the judgment of the Advisor or Subadvisors, 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 deigned 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 ACCOUNTANTS AND CUSTODIANS
--------------------------------------
Arthur Andersen LLP has been selected by the Board of Directors to
serve as independent accountants for fiscal year 2001. 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.
<PAGE>
GENERAL INFORMATION
-------------------
The Fund is a series of Calvert Impact Fund, Inc., an open-end management
investment company organized as a Maryland Corporation on August 10, 2000. The
Fund is non-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 classes of shares: Class A, Class B, Class C and Class I. Upon any
liquidation of the Fund, shareholders are entitled to share pro rata in the net
assets 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.
<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. 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>
Part C. other information
Item 23. Exhibits
a Articles of Incorporation incorporated by reference to
Registrant's Pre-Effective Amendment No. 3, November 1, 2000, accession number
0001121624-00-000017.
b By-laws filed incorporated by reference to Registrant's Pre-
Effective Amendment No. 3, November 1, 2000, accession number
0001121624-00-000017.
c Instruments defining the security holder rights (not applicable)
d Investment Advisory Agreement with Calvert Asset Management
to Registrant's Pre-Effective Amendment No. 3, November 1, 2000, accession
number 0001121624-00-000017.
Investment Subadvisory Agreement (shall be filed by amendment)
e Underwriting Agreement with Calvert Distributors, Inc.
incorporated by reference to Registrant's Pre-Effective Amendment No. 3,
November 1, 2000, accession number 0001121624-00-000017.
f Directors' Deferred Compensation Agreement incorporated by
reference to Registrant's Pre-Effective Amendment No. 3, November 1, 2000,
accession number 0001121624-00-000017.
g Custodial Agreement with State Street Bank and Trust
incorporated by reference to Registrant's Pre-Effective Amendment No. 3,
November 1, 2000, accession number 0001121624-00-000017.
h Transfer Agency Agreement with National Financial Data Services
incorporated by reference to Registrant's Pre-Effective Amendment No. 3,
November 1, 2000, accession number 0001121624-00-000017.
Servicing Agreement with Calvert Shareholder Services
incorporated by reference to Registrant's Pre-Effective Amendment No. 3,
November 1, 2000, accession number 0001121624-00-000017.
Administrative Services Agreement with Calvert Administrative
Services Company incorporated by reference to Registrant's Pre-
Effective Amendment No. 3, November 1, 2000, accession number
0001121624-00-000017.
i Opinion and Consent of Counsel as to legality
of shares being registered filed herewith.
j Independent Auditors' Consent filed herewith.
k Omitted financial statement re computation of ratios
(not applicable)
l Letter regarding initial capital incorporated by reference to
Registrant's Pre-Effective Amendment No. 3, November 1, 2000, accession number
0001121624-00-000017.
m Plan of distribution, Class A, B, and C incorporated by
reference to Registrant's Pre-Effective Amendment No. 3, November 1, 2000,
accession number 0001121624-00-000017.
n 18f-3 Multiple Class Plan, Class A, B, C, and I,
incorporated by reference to Registrant's Pre-Effective Amendment No. 3,
November 1, 2000, accession number 0001121624-00-000017.
o EXHIBIT 24 - Power of Attorney Forms incorporated by reference to
Registrant's Pre-Effective Amendment No. 3, November 1, 2000, accession number
0001121624-00-000017.
p Code of Ethics incorporated by reference to Registrant's Pre-
Effective Amendment No. 3, November 1, 2000, accession number
0001121624-00-000017.
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
Calvert Social Index Series
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.
Calvert Social Index Series
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
---------------
Robert-John H. Ameritas Acacia Mutual Holding Company Officer
Acacia Life Insurance
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.
Calvert Social Index Series
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.
Calvert Social Index Series
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.
Calvert Social Index Series
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
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.
Calvert Social Index Series
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
---------------
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.
Calvert Social Index Series
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., Calvert Social Index Series, Inc., Calvert Variable
Series, Inc., and Calvert Impact Fund, Inc.
(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 and Director
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
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
Mike Yuhas Controller None
Hui Ping Ho Assistant Treasurer None
*4550 Montgomery Avenue, Bethesda, Maryland 20814
(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
Not Applicable
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 19th day of December, 2000.
Calvert Impact Fund, Inc.
By:
____________**____________________
Barbara J. Krumsiek
President and Director
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
__________**____________ President 12/19/2000
Barbara J. Krumsiek Director
__________**____________ Principal Accounting 12/19/2000
Ronald M. Wolfsheimer Officer
/s/William M. Tartikoff Director 12/19/2000
William M. Tartikoff
__________**____________ Director 12/19/2000
REBECCA L. ADAMSON
__________**____________ Director 12/19/2000
JOY V. JONES
__________**____________ Director 12/19/2000
D. Wayne Silby
__________**____________ Director 12/19/2000
Miles Douglas Harper, III
** Signed by Jennifer Streaks pursuant to power of attorney.
/s/Jennifer Streaks
