PROSPECTUS
October 31, 2000
CALVERT LARGE CAP GROWTH FUND
About the Fund
2 Investment Objective, Strategy, Past Performance
5 Fees and Expenses
7 Investment Practices and Risks
10 Shareholder Advocacy and Social Responsibility
About Your Investment
11 About Calvert
11 Advisory Fees
12 How to Buy Shares
13 Choosing a Share Class
15 Calculation of CDSC/Waiver
16 Distribution and Service Fees
16 Account Application
17 Important - How Shares are Priced
17 When Your Account Will be Credited
18 Other Calvert Group Features
(Exchanges, Minimum Account Balance, etc.)
20 Dividends, Capital Gains and Taxes
22 How to Sell Shares
24 Exhibit A - Reduced Sales Charges (Class A)
26 Exhibit B- Service Fees and Other Arrangements with Dealers
These securities have not been approved or disapproved by the Securities and
Exchange Commission ("SEC") or any State Securities Commission, nor has the SEC
or any State Securities Commission passed on the accuracy or adequacy of this
prospectus. Any representation to the contrary is a criminal offense.
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Calvert Large Cap Growth Fund
Investment Objective
Calvert Large Cap Growth Fund seeks to exceed the stock market total return
(primarily through capital appreciation) at a level of total risk roughly equal
to that of the stock market over longer periods of time (three years or more).
The S&P 500 Index with dividends reinvested serves as a proxy for "stock market"
in this objective.
Principal Investment Strategies
The Fund invests in a diversified portfolio of common stocks of companies which
meet the Fund's investment and social criteria. While the Fund has the
flexibility to invest in companies of all sizes, typically 80% to 95% of the
Fund has been invested in large U.S. companies traded on the New York Stock
Exchange, the American Stock Exchange and NASDAQ. The Fund invests in both value
and growth companies. Value stocks are those priced cheaply relative to some
financial measures of worth. Growth stocks have faster increasing sales and
earnings.
A secondary portfolio strategy is the use of exchange-traded, "traditional"
stock index options and futures. These investments help to keep the long-term
average market risk of the Fund roughly equal to the market itself. At any one
point in time however, the Portfolio market exposure may be as high as 150% or
as low as 50% of the market. The Advisor and Subadvisor believe that the use of
these instruments is conservative; it does not try to leverage overall market
risk in the long term.
Socially Responsible Investment Criteria
Investments are selected on the basis of their ability to contribute to the dual
objectives of financial soundness and social criteria. 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 Calvert. All social criteria may be
changed by the Board of Directors without shareholder approval.
Environment: The Fund will not invest in companies that have poor environmental
records, including significant compliance and waste management problems. The
Fund seeks to invest in companies that have strong programs that focus on
reducing overall environmental impact. Further, the Fund will not invest in
companies significantly engaged in nuclear power.
Labor Relations: The Fund will not invest in companies that have a record of
employment discrimination, anti-union activities or provide unsafe workplaces.
The Fund seeks to invest in companies that have a good record of labor
relations, including strong diversity programs.
Product Safety: The Fund will not invest in companies that primarily engage in
tobacco, alcohol, firearms or gambling. The Fund seeks to invest in companies
that produce healthy and safe products and services.
Animal Welfare: The Fund will not invest in companies that abuse animals through
methods of factory farming. The Fund seeks to invest in consumer product
companies that demonstrate a reduction in the use of animal testing, if
applicable.
Military Weapons: The Fund will not invest in companies that are primarily
engaged in weapons contracting with the Department of Defense.
Community Relations: The Fund will not invest in companies that are not
responsive to communities where they operate. The Fund seeks to invest in
companies that are responsible citizens in these communities.
Human Rights: The Fund will not invest in companies that directly contribute to
human rights violations worldwide. The Fund seeks to invest in companies that
have adopted human rights standards in their overseas operations.
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 Native Americans and other indigenous peoples.
With respect to U.S. government securities, the Fund invests primarily in debt
obligations issued or guaranteed by agencies or instrumentalities of the U.S.
Government whose purposes further, or are compatible with, the Fund's social
criteria, such as obligations of the Student Loan Marketing Association, rather
than general obligations of the U.S. Government, such as Treasury securities.
Principal Risks
You could lose money on your investment in the Fund, or the Fund could
underperform, most likely for any of the following reasons:
- The stock market goes down
- The individual stocks in the Fund do not perform as well as expected
- The use of stock index futures and options could add to, rather than decrease
risk
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*
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 Standard & Poor's 500 Index, a widely recognized, unmanaged
index of common stock prices. It also compares the Fund's performance to the
Lipper Large Cap Growth Index. Class A, B, and C shares have an actual
inception date of 10/31/00. However, Class I Shares have an inception date of
8/5/94. In the chart and table below, performance results before 10/31/00 are
for Class I (without the assessment of any sales charge.) Because Class I had
lower expenses, its performance was higher than Class A, B, or C would have
realized in the same period. 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 index and average used for comparison in the
table.
* Pursuant to an Agreement and Plan of Reorganization, the Social Responsibility
Portfolio of Bridgeway Fund, Inc. was reorganized into the Class I Shares of
the Calvert Large Cap Growth Fund, which commenced operations on October 31,
2000. Thus the following performance results for the Class I shares of the
Calvert Large Cap Growth Fund reflect the performance of the Bridgeway
Social Responsibility Portfolio. Please note that current expenses for the
Class I Shares of the Large Cap Growth Fund are capped at 0.90%, less than what
they were for the Bridgeway Social Responsibility Portfolio and therefore,
actual performance would have differed.
Year-by-Year Total Return
[INSERT BAR CHART HERE]
Best Quarter (of periods shown) Q4 '99 40.66%
Worst Quarter (of periods shown) Q3 '98 (9.98)%
Average Annual Total Returns (as of December 31, 1999)
(with maximum sales charge deducted)
1 year 5 year 10 year1
Calvert Large Cap Growth Fund 49.36% 31.77% N/A
Lipper Large Cap Growth Index 34.82% 30.73% N/A
S&P 500 Index 21.03% 28.54% N/A
Class A, B, and C Shares have not commenced operations and their performance is
not shown above.
1 Since inception (8/31/94): Calvert Large Cap Growth Fund (Class I) 28.28%;
Lipper Large Cap Growth Index 27.87%; and S&P 500 Index 25.95%. The month-end
date of 8/31/94 is used for comparison purposes only; actual Fund inception is
8/5/94.
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Fees and Expenses
This table describes the fees and expenses that
you may pay if you buy and hold shares of the Fund.
Classes
A B C I
Shareholder fees
Maximum sales charge
(load) imposed on purchases 4.75% None None None
Maximum deferred sales charge (load) None2 5%3 1%4 None
(as a percentage of purchase or redemption
proceeds, whichever is lower)
Annual fund operating expenses1
Management fees 1.15% 1.15% 1.15% 1.05%
Distribution and service (12b-1) fees 0.25% 1.00% 1.00% None
Other expenses 0.68% 1.22% 1.08% 0.56%
Total annual fund operating expenses 2.08% 3.37% 3.23% 1.61%
Fee waiver and/or expense reimbursement5 0.33% 0.62% 0.48% 0.46%
Net Expenses6 1.75% 2.75% 2.75% 1.15%
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 ($1,000,000 in the Institutional Class) 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
Class A $644 $1,066
Class B (with redemption) $778 $1,379
Class B(no redemption) $278 $979
Class C (with redemption) $378 $950
Class C (no redemption) $278 $950
Class I $11,721 $46,304
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Explanation of Fees and Expenses Table
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
Fund to the Subadvisor. The subadvisory fees for the Fund are subject to a
performance adjustment, which could cause the fee to be as high as 0.70% or as
low as 0.20%, depending on the Fund's performance relative to the S&P 500
Index. Management fees also include an administrative fee paid
by the Fund to Calvert Administrative Services Company, an affiliate of the
Advisor.
2 Purchases of Class A shares for accounts with $1 million or more are not
subject to front-end sales charges, but may be subject to a 1% contingent
deferred sales charge on shares redeemed within one year of purchase. See "How
to Buy Shares - Class A."
3 A contingent deferred sales charge is imposed on the proceeds of Class B
shares redeemed within six years, subject to certain exceptions. The charge is a
percentage of net asset value at the time of purchase or redemption, whichever
is less, and declines from 5% in the first year that shares are held, to 4% in
the second and third year, 3% in the fourth year, 2% in the fifth year and 1% in
the sixth year. There is no charge on redemptions of Class B shares held for
more than six years. See "Calculation of Contingent Deferred Sales Charge."
4 A contingent deferred sales charge of 1% is imposed on the proceeds of
Class C shares redeemed within one year. The charge is a percentage of net asset
value at the time of purchase or redemption, whichever is less. See "Calculation
of Contingent Deferred Sales Charge."
5 The Advisor has agreed to limit annual fund operating expenses (net of any
expense offset arrangements and exclusive of any performance fee adjustment)
through November 1, 2001. The contractual expense cap is shown as "Net
Expenses," this is the maximum amount of operating expenses that may be charged
to the Fund through November 1, 2001. For the purposes of this expense limit,
operating expenses do not include interest expense, brokerage commissions,
extraordinary expenses, taxes and capital items. The Fund has an offset
arrangement with the custodian bank whereby the custodian and transfer agent
fees may be paid indirectly by credits on the Fund's uninvested cash balances.
These credits are used to reduce the Fund's expenses.
6 The contractual expense cap is 1.50% for Class A, 2.50% for Class B, 2.50%
for Class C and 0.90% for Class I, exclusive of any performance fee adjustment.
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Investment Practices and Risks
The most concise description of the Fund's risk profile is under the risk-return
summary. The Fund is also permitted to invest in certain other investments and
to use certain investment techniques that have higher risks associated with
them. On the following pages are brief descriptions of these other principal
investments and techniques, along with their risks.
For each of the investment practices listed, the Fund's limitations are shown as
a percentage of its assets and the principal types of risk involved. (See the
pages following for a description of the types of risks).
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 your tax
liability. Risks: Opportunity, Market and Transaction.
Temporary Defensive Positions. During adverse market, economic or political
conditions, the Fund may depart from its principal investment strategies by
increasing its investment in short-term interest-bearing securities. During
times of any temporary defensive positions, the Fund may not be able to achieve
its investment objective. Risks: Opportunity.
Conventional Securities
Stocks in General. The Fund is subject to stock market risk. Stock prices
overall may decline over short or even long periods. The Fund is also subject to
investment style risk, which is the chance that returns from
large-capitalization stocks will trail returns from other asset classes or the
overall stock market. Each type of stock tends to go through cycles of doing
better or worse than the stock market in general. Finally, individual stocks may
lose value for a variety of reasons, even when the overall stock market has
increased. Risks: Market.
Foreign Securities. Securities issued by companies located outside the U.S.
and/or traded primarily on a foreign exchange. The Fund does not expect to own
more than 10% of such securities. Risks: Market, Currency, Transaction,
Liquidity, Information and Political.
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.
Investment grade bonds. Bonds rated BBB/Baa or higher or comparable unrated
bonds. Risks: Interest Rate, Market and Credit.
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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. The Fund does not expect to own more than 20% of such
securities, excluding any high social impact investments. Risks: Credit, Market,
Interest Rate, Liquidity and Information.
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.
Illiquid securities. Securities which cannot be readily sold because there is no
active market. The Fund does not expect to own more than 15% of such securities.
Risks: Liquidity, Market and Transaction.
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 they
already own the security (if it is "covered"). The Fund does not expect to own
more than 5% (based on net premium payments) of such securities. Risks: Interest
Rate, Currency, Market, Leverage, Correlation, Liquidity, Credit and
Opportunity.
Futures contract. Agreement to buy or sell a specific amount of a commodity or
financial instrument at a particular price on a specific future date. The Fund
does not expect to own more than 5% of such securities. Risks: Interest Rate,
Currency, Market, Leverage, Correlation, Liquidity and Opportunity.
High Social Impact Investments
High Social Impact Investments is a program that permits up to 1% of the Fund's
assets to be targeted to directly support the growth of community-based
organizations for the purposes of promoting business creation, housing
development, and economic and social development of urban and rural communities.
These types of investments offer a rate of return below the then-prevailing
market rate, and are considered illiquid, unrated and may be deemed
below-investment grade. They also involve a greater risk of default or price
decline than investment grade securities. However, they have a significant
social return by making a difference in our communities. High Social Impact
Investments are valued under the direction and control of the Fund's Board.
Special Equities
The Fund has a Special Equities investment program that allows the Fund to
promote especially promising approaches to social goals through privately placed
investments. The investments are generally venture capital investments in small,
untried enterprises. The Special Equities Committee of the Fund identifies,
evaluates, and selects the Special Equities investments. Special Equities
involve a high degree of risk - they are subject to liquidity, information, and
if a debt investment, credit risk. Special Equities are valued under the
direction and control of the Fund's Board.
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The Fund has additional investment policies and restrictions (for example,
repurchase agreements, borrowing, pledging, and reverse repurchase agreements,
securities lending, when-issued securities and short sales.) These policies and
restrictions are discussed in the Statement of Additional Information ("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 U.S. dollar.
Adverse changes in foreign currency values can cause investment losses when a
Fund's investments are converted to U.S. 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.
Management risk
The risk that a Fund's portfolio management practices might not work to achieve
their desired result.
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Market risk
The risk 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
As the Fund's investment advisor, Calvert takes a proactive role to make a
tangible positive contribution to our society and that of future generations.
Calvert seeks to positively influence corporate behavior through its role as a
shareholder by pushing companies toward higher standards of social and
environmental responsibility. Calvert's activities may include but are not
limited to:
Dialogue with companies
Calvert regularly initiates dialogue with management as part of its social
research process. After the Fund has become a shareholder, Calvert often
continues its dialogue with management through phone calls, letters and
in-person meetings. Through its interaction, Calvert learns about management's
successes and challenges and press for improvement on issues of concern.
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. Calvert takes its voting
responsibility seriously and votes all proxies consistent with the financial and
social objectives of the Fund.
Shareholder resolutions
Calvert proposes resolutions on a variety of social issues. It files shareholder
resolutions when its dialogue with corporate management proves unsuccessful to
encourage a company to take action. In most cases, Calvert's efforts have led to
negotiated settlements with positive results for shareholders and companies
alike. For example, one of its shareholder resolutions resulted in the company's
first-ever disclosure of its equal employment policies, programs and workforce
demographics.
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About Calvert
Calvert Asset Management Company, Inc., 4550 Montgomery Avenue, Suite 1000N,
Bethesda, Maryland 20814 ("Calvert"), is the Fund's investment advisor. Calvert
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 affiliated persons of the Advisor. It has been
managing mutual funds since 1976. Calvert is the investment advisor for over25
mutual fund portfolios, including the first and largest family of socially
screened funds. As of June 30, 2000, Calvert had over $6.6 billion in assets
under management.
Subadvisor and Portfolio Manager
Bridgeway Capital Management, Inc., 5615 Kirby Drive, Suite 518, Houston Texas
77005-2448, has managed the Fund (previously the Bridgeway Fund, Inc. Social
Responsibility Portfolio) since its inception in 1994.
John Montgomery, founder and President of Bridgeway Capital Management, Inc., is
responsible for selecting the securities that the Fund purchases and sells. Mr.
Montgomery holds bachelor degrees from Swarthmore College in both engineering
and philosophy and graduate degrees from MIT and Harvard Business School. He
worked with computer modeling and quantitative methods as a research engineer at
MIT in the late 70's. Later, as a student at Harvard, he investigated methods to
apply modeling to portfolio management. John began applying these methods to his
own investments in 1985. He left the transportation industry at the end of 1991
to perform full time research on his investment models.
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 Subadvisor without
shareholder approval. See "Investment Advisor and Subadvisor" in the SAI for
further details.
Advisory Fees
The Fund's advisory agreement provides for the Fund to pay the Advisor a fee of
0.25% of the Fund's average daily net assets. In addition, the Fund's
subadvisory agreement provides for the Fund to directly pay the Subadvisor a fee
of 0.45% of the Fund's average daily net assets. The Subadvisor may earn (or
have its base fee reduced by) a performance adjustment of plus or minus 0.25%,
based on the extent to which performance of the Fund exceeds or trails the
index against which it is measured.
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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(s) best suit your needs and your goals.
Second, decide what kind of account you want to open. Calvert offers individual,
joint, trust, Uniform Gifts/Transfers to Minor Accounts, Traditional, Education
and Roth IRAs, Qualified Profit-Sharing and Money Purchase Plans, SIMPLE IRAs,
SEP-IRAs, 403(b)(7) accounts, and several other types of accounts. Minimum
investments are lower for the retirement plans.
Then decide which class of shares is best for you.
You should make this decision carefully, based on:
- the amount you wish to invest;
- the length of time you plan to keep the investment; and
- the Class expenses.
The Fund offers four different Classes (Class A, B, C and I). This chart shows
the difference in the Classes and the general types of investors who may be
interested in each Class:
<PAGE>
Choosing a Share Class
Class A:
Front-End Sales Charge
For all investors, particularly those investing a substantial amount who plan to
hold the shares for a long period of time.
Sales charge on each purchase of 4.75% or less, depending on the amount you
invest.
Class A shares have an annual 12b-1 fee of 0.25%.
Class A shares have lower annual expenses due to a lower 12b-1 fee.
Purchases of Class A shares at NAV for accounts with $1 million or more will be
subject to a 1% deferred sales charge for 1 year.
Class B: Deferred Sales Charge for 6 years
For investors who plan to hold the shares at least 6 years. The expenses of this
class are higher than Class A, because of the 12b-1 fee.
No sales charge on each purchase, but if you sell your shares within 6 years,
you will pay a deferred sales charge of 5% or less on shares you sell.
Class B shares have an annual 12b-1 fee of 1%.
Your shares will automatically convert to Class A shares after 8 years, reducing
your future annual expenses.
If you are investing more than $250,000, you should consider investing in Class
A or C.
Class C: Deferred Sales Charge for 1 year
For investors who are investing for at least one year, but less than six years.
The expenses of this Class are higher than Class A, because of the 12b-1 fee.
No sales charge on each purchase, but if you sell shares within 1 year, then you
will pay a deferred sales charge of 1% at that time.
Class C shares have an annual 12b-1 fee of 1%.
Class C shares have higher annual expenses than Class A and there is no
automatic conversion to Class A.
If you are investing more than $1 million you should invest in Class I.
Class I:
No Sales
Charge
For investors who are investing $1 million or more.
No sales charge.
No annual 12b-1 fee.
Class I shares have low annual
expenses.
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Class A
If you choose Class A, you will pay a sales charge at the time of each purchase.
This table shows the charges both as a percentage of offering price and as a
percentage of the amount you invest. The term "offering price" means the NAV per
share plus the front-end sales charge. If you invest more, the percentage rate
of the sales charge will be lower. For example, if you invest more than $50,000,
or if your cumulative purchases or the value in your account is more than
$50,0001, 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 not more than $100,000 3.75% 3.90%
$100,000 but not more than $250,000 2.75% 2.83%
$250,000 but not more than $500,000 1.75% 1.78%
$500,000 but not more than $1,000,000 1.00% 1.01%
$1,000,000 and over None2 None2
1 This is called "Rights of Accumulation." The sales charge is calculated by
taking into account not only the dollar amount of the new purchase of shares,
but also the higher of cost or current value of shares you have previously
purchased in Calvert Group Funds that impose sales charges. This automatically
applies to your account for each new purchase of Class A shares.
2 Purchases of Class A shares at NAV for accounts with $1,000,000 ($1
million) or more are subject to a one year CDSC of 1%. See the "Calculation of
Contingent Deferred Sales Charge and Waiver of Sales Charges."
The Class A front-end sales charge may be waived for certain purchases or
investors, such as participants in certain group retirement plans or other
qualified groups and clients of registered investment advisers. For details on
these and other purchases that may qualify for a reduced sales charge, see
Exhibit A.
Class B
If you choose Class B, there is no front-end sales charge like Class A, but if
you sell the shares within the first six years, you will have to pay a
"contingent deferred" sales charge ("CDSC"). Keep in mind that the longer you
hold the shares, the less you will have to pay in deferred sales charges.
Time Since Purchase CDSC %
1st year 5%
2nd year 4%
3rd year 4%
4th year 3%
5th year 2%
6th year 1%
After 6 years None
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Calculation of Contingent Deferred Sales Charge and Waiver of Sales Charges
The CDSC will not be charged on shares you received as dividends or from capital
gains distributions or on any capital appreciation (gain in the value) of shares
that are sold.
Shares that are not subject to the CDSC will be redeemed first, followed by
shares you have held the longest. The CDSC is calculated by determining the
share value at both the time of purchase and redemption and then multiplying
whichever value is less by the percentage that applies as shown above. If you
choose to sell only part of your shares, the capital appreciation for those
shares only is included in the calculation, rather than the capital appreciation
for the entire account.
The CDSC on Class B Shares will be waived in the following circumstances:
- Redemption upon the death or disability of the shareholder, plan
participant, or beneficiary.1
- Minimum required distributions from retirement plan accounts for
shareholders 70 1/2 and older.2
- The return of an excess contribution or deferral amounts, pursuant to
sections 408(d)(4) or (5), 401(k)(8), 402(g)(2), or 401(m)(6) of the Internal
Revenue Code.
- Involuntary redemptions of accounts under procedures set forth by the
Fund's Board of Directors.
- A single annual withdrawal under a systematic withdrawal plan of up to 10%
of the shareholder's account balance.3
1 "Disability" means a total disability as evidenced by a determination by
the federal Social Security Administration.
2 The maximum amount subject to this waiver is based only upon the
shareholder's Calvert Group retirement accounts.
3 This systematic withdrawal plan requires a minimum account balance of
$50,000 to be established.
Class C
If you choose Class C, there is no front-end sales charge like Class A, but if
you sell the shares within the first year, you will have to pay a 1% CDSC. Class
C may be a good choice for you if you plan to buy shares and hold them for at
least 1 year, but not more than five or six years.
Class I
If you choose Class I, there is no sales charge, nor a Distribution Plan. The
minimum initial investment is $1 million; the minimum subsequent investment is
$25,000. Class I shares require a minimum account balance of $1 million.
Purchases must be by bank wire.
Note for former Bridgeway Shareholders:
The minimum investment requirement for Class I shares is waived for shareholders
opening accounts pursuant to the Agreement and Plan of Reorganization of the
Bridgeway Social Responsibility Portfolio, with such reorganization occurring on
October 31, 2000. For these shareholders, additional accounts or exchanges will
not be honored in Class I. Any additional accounts must be established in Class
A, B or C. Additionally, no additional services or automated features can be
added to an existing account, they are only available in accounts established in
Class A, B or C.
<PAGE>
Distribution and Service Fees (For Class A, B and C only)
The Fund has adopted a plan under Rule 12b-1 of the Investment Company Act of
1940 that allows the Fund to pay distribution fees for the sale and distribution
of its shares. The distribution plan also pays service fees to persons (such as
your financial professional) for services provided to shareholders. Because
these fees are paid out of a Fund's assets on an ongoing basis, over time, these
fees will increase the cost of your investment and may cost you more than paying
other types of sales charges. Please see Exhibit B for more service fee
information.
The table below shows the maximum annual percentage payable under the
distribution plan. The fees are based on average daily net assets of the
particular Class.
Maximum Payable Under Plan
Class A Class B Class C
0.25% 1.00% 1.00%
NEXT STEP - ACCOUNT APPLICATION
Complete and sign an application for each new account. Please specify which
class you wish to purchase. For more information, contact your financial
professional or our sales department at 800-368-2748.
FOR CLASS A, B and C
Minimum to open an account Minimum additional investments
$2,000 $250
Please make your check payable to the Fund and mail it to the Fund's transfer
agent at:
New Accounts Subsequent investments
(include application): (include investment slip):
Calvert Group Calvert Group
P.O. Box 219544 P.O. Box 219739
Kansas City, MO 64121-9544 Kansas City, MO 64121-9739
By Registered, Calvert Group
Certified, or c/o NFDS
Overnight Mail 330 West 9th Street
Kansas City, MO 64105-1807
FOR CLASS I
Minimum to open an account Minimum additional investments
$1 million $25,000
Wire investments to: State Street Bank and Trust Company
Boston MA
ABA# 011000028
FBO: Calvert Large Cap Growth Fund
Wire Account #99037657
Your name and account number
<PAGE>
IMPORTANT - HOW SHARES ARE PRICED
The price of shares is based on the Fund's net asset value ("NAV"). NAV is
computed by adding the value of the Fund's holdings plus other assets,
subtracting liabilities, and then dividing the result by the number of shares
outstanding. The NAV of each class will be different, depending on the number of
shares outstanding for each class.
Portfolio securities and other assets are valued based on market quotations,
except that securities maturing within 60 days are valued at amortized cost. If
market quotations are not readily available, securities are valued by a method
that the Fund's Board of 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.
The Fund may hold 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 NAV next calculated after your order is
received by the transfer agent in Kansas City, MO (see addresses on preceding
page). All of your purchases must be made in U.S. dollars and indicate the Fund
and Class. No cash or third party checks will be accepted. No credit card or
credit loan checks will be accepted. 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 by the Transfer Agent. You
should note that the share price may change during this period. Any check
purchase received without an investment slip may cause delayed crediting. Any
purchase less than the $250 minimum for subsequent investments will be charged a
fee of $5 payable to the Fund. If your check does not clear your bank, your
purchase will be canceled and you will be charged a $25 fee plus any costs
incurred. All purchases will be confirmed and credited to your account in full
and fractional shares (rounded to the nearest 1/1000th of a share).
<PAGE>
OTHER CALVERT GROUP FEATURES
Calvert Information Network
For 24 hour performance and account information call 800-368-2745 or visit
www.calvert.com
Account Services
By signing up for services when you open your account, you avoid having to
obtain a signature guarantee. If you wish to add services at a later date, a
signature guarantee to verify your signature may be obtained from any bank,
trust company and savings and loan association, credit union, broker-dealer firm
or member of a domestic stock exchange. A notary public cannot provide a
signature guarantee.
Calvert Money Controller
Calvert Money Controller allows you to purchase or sell shares by electronic
funds transfer without the time delay of mailing a check or the added expense of
a wire. Use this service to transfer up to $300,000 electronically. Allow one or
two business days after you place your request for the transfer to take place.
Money transferred to purchase new shares may be subject to a hold of up to 10
business days before redemption requests will be honored. Transaction requests
must be received by 4 p.m. ET to receive that day's price. You may request this
service on your initial account application. Calvert Money Controller
transactions returned by your bank will incur a $25 charge.
Telephone Transactions
You may purchase, redeem, or exchange shares, wire funds and use Calvert Money
Controller by telephone if you have pre-authorized service instructions and
established bank instructions on your account, when opened or at a later date by
a signature guaranteed letter. You receive telephone privileges automatically
when you open your account unless you instruct us otherwise in writing. While
telephone redemption is easy and convenient, this account feature involves a
risk of loss from unauthorized or fraudulent transactions. Calvert will take
reasonable precautions to protect your account from fraud. You should do the
same by keeping your account information private and immediately reviewing any
confirmations or account statements that we send to you. Make sure to contact
Calvert immediately about any transaction you believe to be unauthorized.
Calvert reserves the right to refuse a telephone redemption if the caller is
unable to provide:
- The account number.
- The name and address exactly as registered on the account.
- The primary Social Security or employer identification number as
registered on the account.
Please note that Calvert will not be responsible for any account losses due to
telephone fraud, so long as we have taken reasonable steps to verify the
caller's identity. If you wish to remove the telephone redemption feature from
your account, please notify us in writing.
<PAGE>
Exchanges
Calvert Group offers a wide variety of investment options that includes common
stock funds, tax-exempt and corporate bond funds, and money market funds (call
your financial professional or Calvert representative for more information). We
make it easy for you to purchase shares in other Calvert funds if your
investment goals change. The exchange privilege offers flexibility by allowing
you to exchange shares on which you have already paid a sales charge from one
Calvert Group mutual fund to another at no additional sales 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.
No CDSC is imposed on exchanges of shares subject to a CDSC at the time of the
exchange. The applicable CDSC is imposed at the time the shares acquired by the
exchange are redeemed.
Bank Holidays
On any day Calvert Group is open but the Fund's custodian bank is closed (e.g.,
Columbus Day and Veteran's Day) exchange requests into or out of a money market
fund will be priced at the next-determined NAV, but will not receive any
dividend in the money market fund until the next day the Fund's custodian bank
is open.
The Fund and the distributor reserve the right at any time to reject or cancel
any part of any purchase or exchange order; modify any terms or conditions of
purchase of shares of the Fund; or withdraw all or any part of the offering made
by this prospectus. To protect the interests of investors, the Fund and the
distributor may reject any order considered market-timing activity.
The Fund reserves the right to terminate or modify the exchange privilege with
60 days' written notice.
Electronic Delivery of Prospectuses and Shareholder Reports
You may request to receive electronic delivery of prospectuses and annual and
semi annual reports.
<PAGE>
Combined General Mailings (Householding)
Multiple accounts with the same social security number will receive one mailing
per household of information such as prospectuses and semi-annual and annual
reports. You may request further grouping of accounts to receive fewer mailings.
Separate statements will be generated for each separate account and will be
mailed in one envelope for each combination above.
Special Services and Charges
The Fund pays for shareholder services but not for special services that are
required by a few shareholders, such as a request for a historical transcript of
an account. You may be required to pay a fee for these special services.
If you are purchasing shares through a program of services offered by a
broker/dealer or financial institution, you should read the program materials
together with this Prospectus. Certain features may be modified in these
programs. Investors may be charged a fee if they effect transactions in Fund
shares through a financial intermediary.
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, a
fee of $$1 per month may be charged to your account. 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 or charged if the balance is
not brought up to the required minimum amount within 30 days.
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 (or by wire for Class I shares).
Dividends and distributions from any Calvert Group Fund may be automatically
invested in an identically registered account in the same share class of any
other Calvert Group Fund at NAV. If reinvested in the same account, new shares
will be purchased at NAV on the reinvestment date, which is generally 1 to 3
days prior to the payment date. You must notify the Fund in writing to change
your payment options. If you elect to have dividends and/or distributions paid
in cash, and the
<PAGE>
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.
You may realize a capital gain or loss when you sell or exchange shares. This
capital gain or loss will be short- or long-term, depending on how long you have
owned the shares which were sold. In January, the Fund will mail you Form 1099-B
indicating the total amount of all sales, including exchanges. You should keep
your annual year-end account statements to determine the cost (basis) of the
shares to report on your tax returns.
Other Tax Information
In addition to federal taxes, you may be subject to state or local taxes on your
investment, depending on the laws in your area. You will be notified to the
extent, if any, that dividends reflect interest received from US government
securities. Such dividends may be exempt from certain state income taxes.
Taxpayer Identification Number
If we do not have your correct Social Security or Taxpayer Identification Number
("TIN") and a signed certified application or Form W-9, Federal law requires us
to withhold 31% of your reportable dividends, and 31% of certain redemptions. In
addition, you may be subject to a fine by the Internal Revenue Service. You will
also be prohibited from opening another account by exchange. Calvert Group
reserves the right to reject any new account or any purchase order for failure
to supply a certified TIN.
<PAGE>
HOW TO SELL SHARES
You may redeem all or a portion of your shares on any day your Fund is open for
business, provided the amount requested is not on hold. When you purchase by
check or with Calvert Money Controller (electronic funds transfer), the purchase
may be on hold for up to 10 business days from the date of receipt. During the
hold period, redemption proceeds will not be sent until the Transfer Agent is
reasonably satisfied that the purchase payment has been collected. Your shares
will be redeemed at the NAV next calculated (less any applicable CDSC) after
your redemption request is received by the transfer agent in good order (see
below). The proceeds will normally be sent to you on the next business day, but
if making immediate payment could adversely affect your Fund, it may take up to
seven (7) days to make payment. Calvert Money Controller redemptions generally
will be credited to your bank account by the second business day after your
phone call. The Fund has the right to redeem shares in assets other than cash
for redemption amounts exceeding, in any 90-day period, $250,000 or 1% of the
net asset value of the affected Fund, whichever is less. When the NYSE is closed
(or when trading is restricted) for any reason other than its customary weekend
or holiday closings, or under any emergency circumstances as determined by the
Securities and Exchange Commission, redemptions may be suspended or payment
dates postponed. Please note that there are some federal holidays, however, such
as Columbus Day and Veterans' Day, when the NYSE is open and the Fund is open
but redemptions cannot be mailed or wired because the post offices and banks are
closed.
Request in "Good Order"
All redemption requests must be received by the transfer agent in "good order."
This means that your request must include:
- The Fund name and account number
- The amount of the transaction (in dollars or shares).
- Signatures of all owners exactly as registered on the account (for mail
requests).
- Signature guarantees (if required).*
- Any supporting legal documentation that may be required.
- Any outstanding certificates representing shares to be redeemed.
*For instance, a signature guarantee must be provided by all registered account
shareholders when redemption proceeds are sent to a different person or address.
A signature guarantee can be obtained from most commercial and savings banks,
credit unions, trust companies, or member firms of a U.S. stock exchange.
Transactions are processed at the next determined share price after the transfer
agent has received all required information.
<PAGE>
Follow these suggestions to ensure timely processing of your redemption request:
By Telephone
You may redeem shares from your account by telephone and have your money mailed
to your address of record or electronically transferred or wired to a bank you
have previously authorized. See "Other Calvert Group Features - Telephone
Transactions."
Written Requests
For Class A, B and C, mail to: Calvert Group,
P.O. Box 219544,
Kansas City, MO 64121-9544
For Class I, mail to: Calvert Institutional Marketing Group,
4550 Montgomery Avenue, Suite 1000N,
Bethesda, Maryland 20814
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 mailed to you at your address of
record 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. Unless they otherwise qualify for a
waiver, Class B or Class C shares redeemed by Systematic Check Redemption will
be subject to the Contingent Deferred Sales Charge.
Corporations and Associations
Your letter of instruction and corporate resolution should be signed by
person(s) authorized to act on the account, accompanied by signature
guarantee(s).
Trusts
Your letter of instruction should be signed by the Trustee(s) (as Trustee(s))
with a signature guarantee. (If the Trustee's name is not registered on your
account, please provide a copy of the trust document, certified within the last
60 days.)
Through your Dealer
Your dealer must receive your request before the close of regular trading on the
NYSE to receive that day's NAV. Your dealer will be responsible for furnishing
all necessary documentation to Calvert Group and may charge you for services
provided.
<PAGE>
EXHIBIT A
REDUCED SALES CHARGES (CLASS A ONLY)
You may qualify for a reduced sales charge through several purchase plans
available. You must notify the Fund at the time of purchase to take advantage of
the reduced sales charge.
Rights of Accumulation can be applied to several accounts
Class A sales charge breakpoints are automatically calculated for each account
based on the higher of cost or current value of shares previously purchased.
This privilege can be applied to a family group or other qualified group1 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.
1 A "qualified group" is one which:
1. has been in existence for more than six months, and
2. has a purpose other than acquiring shares at a discount, and
3. satisfies uniform criteria which enable CDI and brokers offering shares to
realize economies of scale in distributing such shares.
A qualified group must have more than 10 members, must be available to arrange
for group meetings between representatives of CDI or brokers distributing
shares, must agree to include sales and other materials related to the Funds in
its publications and mailings to members at reduced or no cost to CDI or
brokers. A pension plan is not a qualified group for rights of accumulation.
Letter of Intent
If you (or your group, as described above) plan to purchase $50,000 or more of
Calvert Fund shares over the next 13 months, your sales charge may be reduced
through a "Letter of Intent." You pay the lower sales charge applicable to the
total amount you plan to invest over the 13-month period, excluding any money
market fund purchases, instead of the higher 4.75% sales charge. Part of your
shares will be held in escrow, so that if you do not invest the amount
indicated, you will have to pay the sales charge applicable to the smaller
investment actually made. For more information, see the SAI.
Retirement Plans Under Section 457, Section 403(b)(7), or Section 401(k)
There is no sales charge on shares purchased for the benefit of a retirement
plan under section 457 of the Internal Revenue Code of 1986, as amended
("Code"), or for a plan qualifying under section 403(b) or 401(k) of the Code
if, at the time of purchase, (i) Calvert Group has been notified in writing that
the 403(b) 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 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
administra-
<PAGE>
tors should send requests for the waiver of sales charges based on the above
conditions to: Calvert Group Retirement Plans, 4550 Montgomery Avenue, Suite
1000N, Bethesda, Maryland 20814.
Other Circumstances
There is no sales charge on shares of any fund of the Calvert Group of Funds
sold to (i) current or retired Directors, Trustees, or Officers of the Calvert
Group of Funds, employees of Calvert Group, Ltd. and its affiliates, or their
family members; (ii) CSIF Advisory Council Members, directors, officers, and
employees of any subadvisor for the Calvert Group of Funds, employees of
broker/dealers distributing the Fund's shares and immediate family members of
the Council, subadvisor, or broker/dealer; (iii) Purchases made through a
Registered Investment Advisor; (iv) Trust departments of banks or savings
institutions for trust clients of such bank or institution, (v) Purchases
through a broker maintaining an omnibus account with the Fund, provided the
purchases are made by (a) investment advisors or financial planners placing
trades for their own accounts (or the accounts of their clients) and who charge
a management, consulting, or other fee for their services; or (b) clients of
such investment advisors or financial planners who place trades for their own
accounts if such accounts are linked to the master account of such investment
advisor or financial planner on the books and records of the broker or agent; or
(c) retirement and deferred compensation plans and trusts, including, but not
limited to, those defined in section 401(a) or section 403(b) of the I.R.C., and
"rabbi trusts."
Dividends and Capital Gain Distributions from other Calvert Group Funds
You may prearrange to have your dividends and capital gain distributions from
any Calvert Group Fund automatically invested in another account with no
additional sales charge.
Purchases made at NAV
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 ARRANGEMENTS WITH DEALERS
Calvert Distributors, Inc., the Fund's underwriter, pays dealers a commission,
or reallowance (expressed as a percentage of the offering price for Class A, and
a percentage of the amount invested for Class B and C), when you purchase
shares. CDI also pays dealers an ongoing service fee while you own shares of
that Fund (expressed as an annual percentage rate of average daily net assets
held in Calvert accounts by that dealer). The table below shows the amount of
payment which differs depending on the Class.
Maximum Commission/Service Fees
Class A Class B* Class C**
4.00%/0.25% 4.00%/0.25% 1.00%/1.00%
* Class B service fee begins to accrue in the 13th month.
** Class C pays dealers a service fee of 0.25% and additional compensation
of 0.75% for a total of 1.00%. Begins to accrue in the 13th month.
Occasionally, CDI may reallow to dealers the full front-end sales charge. CDI
may also pay additional concessions, including de minimis non-cash promotional
incentives, such as de minimis merchandise or educational 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. Calvert, CDI, or their affiliates may pay, from
their own resources, certain broker-dealers and/or other persons, for the sale
and distribution of the securities or for services to the Fund. These amounts
may be significant. Payments may include additional compensation beyond the
regularly scheduled rates, and finder's fees. CDI pays dealers a finder's fee on
shares purchased at NAV in accounts with $1 million or more. The finder's fee is
1% of the NAV purchase amount on the first $2 million, 0.80% on $2 to $3
million, 0.50% on $3 to $50 million, 0.25% on $50 to $100 million, and 0.15%
over $1 million. If a finder's fee is paid, then the service fee begins in the
13th month after purchase. All payments will be in compliance with the rules of
the National Association of Securities Dealers, Inc.
<PAGE>
To Open an Account:
800-368-2748
Performance and Prices:
www.calvert.com
Service for Existing Accounts:
Shareholders 800-368-2745
Brokers 800-368-2746
TDD for Hearing-Impaired:
800-541-1524
Branch Office:
4550 Montgomery Avenue
Suite 1000N
Bethesda, MD 20814
Registered, Certified or
Overnight Mail:
Calvert Group
c/o NFDS
330 West 9th Street
Kansas City, MO 64105
PRINCIPAL UNDERWRITER
Calvert Distributors, Inc.
4550 Montgomery Avenue
Suite 1000N
Bethesda, MD 20814
<PAGE>
For investors who want more information about the Fund, the following documents
are available free upon request:
Annual/Semi-Annual Reports: Additional information about the Fund's investments
will be available in the Fund's Annual and Semi-Annual reports to shareholders.
In the Fund's annual report, you will find a discussion of the market conditions
and investment strategies that significantly affected the Fund's performance
during its last fiscal year.
Statement of Additional Information (SAI): The SAI for the Fund provides more
detailed information about the Fund and is incorporated into this prospectus by
reference.
You can get free copies of reports and the SAI, 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 information about the Fund at the Commission's Public Reference
Room in Washington, D.C. Information on the operation of the public reference
room may be obtained by calling the Commission at 1-800-SEC-0330. Reports and
other information about the Fund are available on the Commission's Internet site
at http://www.sec.gov. Copies of this information may also be obtained, upon
payment of a duplicating fee, by writing to the Public Reference Section of the
Commission, Washington, D.C. 20549-6009.
Investment Company Act File No.: 811-10045
