Page 1 of ___
SEC Registration Nos.
2-56809 and 811-2633
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-1A
REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OF 1933
Post-Effective Amendment No. 33 XX
and/or
REGISTRATION STATEMENT UNDER THE
INVESTMENT COMPANY ACT OF 1940
Amendment No. 33 XX
First Variable Rate Fund
Calvert First Government Money Market Fund
(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 XX on April 30, 1996
pursuant to paragraph (b) pursuant to paragraph (b)
__ 60 days after filing __ on (date)
pursuant to paragraph (a) pursuant to paragraph (a)
of Rule 485.
Pursuant to the provisions of Rule 24f-2 under the Investment Company
Act of 1940, an indefinite number of shares of beneficial interest is
being registered by this Registration Statement. On February 28, 1996,
Registrant filed a Rule 24f-2 Notice for its fiscal year ended December
31, 1995.
<PAGE>
PROSPECTUS --
April 30, 1996
FIRST VARIABLE RATE FUND:
CALVERT FIRST GOVERNMENT MONEY MARKET FUND
4550 Montgomery Avenue, Bethesda, Maryland 20814
==========================================================================
INTRODUCTION TO THE FUND
CALVERT FIRST GOVERNMENT MONEY MARKET FUND (the "Fund") is a U.S.
Government-only money market fund that seeks to earn the highest
possible yield consistent with safety, liquidity, and preservation of
capital. In pursuing its objective, the Fund invests only in U.S.
Government-backed obligations, including such obligations subject to
repurchase agreements with recognized securities dealers and banks. The
Fund seeks to maintain a constant net asset value of $1.00 per share. An
investment in the Fund is neither insured nor guaranteed by the U.S.
Government. There can be no assurance that the Fund will be successful
in meeting its investment objective or maintaining a constant net asset
value of $1.00 per share.
TO OPEN AN ACCOUNT
Call your broker, or complete and return the enclosed Account
Application. Minimum investment is $2,000.
ABOUT THIS PROSPECTUS
Please read this Prospectus before investing. It is designed to provide
you with information you ought to know before investing and to help you
decide if the Fund's goals match your own. Keep this document for future
reference.
A Statement of Additional Information for the Fund (dated April 30,
1996) has been filed with the Securities and Exchange Commission and is
incorporated by reference. This free Statement is available upon request
from the Fund: 800-368-2748.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION, NOR HAS THE
FEDERAL OR ANY STATE SECURITIES COMMISSION PASSED ON THE ACCURACY OR
ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
SHARES OF THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR
ENDORSED BY, ANY BANK, AND ARE NOT FEDERALLY INSURED BY THE FDIC, THE
FEDERAL RESERVE BOARD, OR ANY OTHER AGENCY.
FUND EXPENSES
A. Shareholder Transaction Costs
==========================================================================
Sales Load on Purchases None
Sales Load on Reinvested Dividends None
Deferred Sales Load None
Redemption Fees None
Exchange Fees None
<TABLE>
<CAPTION>
B. Annual Fund Operating Expenses - Fiscal Year 1995
<S> <C>
(as a percentage of average net assets)
Management Fees 0.50%
Rule 12b-1 Service and Distribution Fees None
Other Expenses 0.39%
Total Fund Operating Expenses<F1> 0.89%
<FN>
<F1> Net Fund Operating Expenses after reduction for fees paid indirectly
were 0.88%.
</FN>
</TABLE>
C. Example: You would pay the following expenses on a $1,000
investment, assuming (1) 5% annual return and (2)
redemption at the end of each period:
1 Year 3 Years 5 Years 10 Years
==========================================================================
$9 $28 $49 $110
The example, which is hypothetical, should not be considered a
representation of past or future expenses. Actual expenses may be higher
or lower than those shown.
Explanation of Table: The purpose of the table is to assist you in
understanding the various costs and expenses that an investor in the
Fund may bear directly (shareholder transaction costs) or indirectly
(annual fund operating expenses).
A. Shareholder Transaction Costs are charges you pay when you buy or
sell shares of the Fund. If you request a wire redemption of less than
$1,000, you will be charged a $5 wire fee.
B. Annual Fund Operating Expenses are based on the Fund's historical
expenses. Management Fees are paid by the Fund to Calvert Asset
Management Company, Inc. ("Investment Advisor") for managing the Fund's
investments and business affairs. The Fund incurs Other Expenses for
maintaining shareholder records, furnishing shareholder statements and
reports, and other services. Management Fees and Other Expenses have
already been reflected in the Fund's yield or share price and are not
charged directly to individual shareholder accounts. Please refer to
"Management of the Fund" for further information.
FINANCIAL HIGHLIGHTS
The following table provides information about the financial history of
the Fund's shares. It expresses the information in terms of a single
share outstanding throughout each year. The table has been audited by
those independent accountants whose report is included in the Annual
Report to Shareholders of the Fund. The tables should be read in
conjunction with the financial statements and their related notes. The
current Annual Report to Shareholders is incorporated by reference into
the Statement of Additional Information.
<TABLE>
<CAPTION>
Year Ended December 31, 1995 1994
<S> <C> <C>
Net asset value, beginning of year $1.000 $1.000
Income from investment operations
Net investment income .051 .036
Distributions from
Net investment income (.051) (.036)
Net asset value, end of year $1.000 $1.000
Total return<F2> 5.22% 3.66%
Ratio to average net assets
Net investment income 5.04% 3.56%
Total expenses<F3> .89% --
Net expenses .88% .81%
Net assets, end of year (in thousands) $241,150
$230,183
Number of shares outstanding at end
of year (in thousands) 241,685
230,618
<FN>
<F2> Total return has not been audited prior to 1994.
<F3> Effective December 31, 1995, this ratio reflects total expenses before
reduction for fees paid indirectly; such reductions are included in the
ratio of net expenses.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Year Ended December 31, 1993 1992
<S> <C> <C>
Net asset value, beginning of year $1.000 $1.000
Income from investment operations
Net investment income .027 .033
Distributions from
Net investment income (.027) (.033)
Net asset value, end of year $1.000 $1.000
Total return<F4> 2.70% 3.40%
Ratio to average net assets
Net investment income 2.66% 3.30%
Total expenses<F5> -- --
Net expenses .81% .82%
Net assets, end of year (in thousands) $263,260 $314,999
Number of shares outstanding at end
of year (in thousands) 263,930 315,667
<FN>
<F4> Total return has not been audited prior to 1994.
<F5>5 Effective December 31, 1995, this ratio reflects total expenses before
reduction for fees paid indirectly; such reductions are included in the
ratio of net expenses.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Year Ended December 31, 1991 1990
<S> <C> <C>
Net asset value, beginning of year $1.000 $1.000
Income from investment operations
Net investment income .055 .073
Distributions from
Net investment income (.055) (.073)
Net asset value, end of year $1.000 $1.000
Total return<F6> 5.65% 7.61%
Ratio to average net assets
Net investment income 5.49% 7.36%
Total expenses<F7> -- --
Net expenses .82% .83%
Net assets, end of year (in thousands) $353,339 $342,206
Number of shares outstanding at end
of year (in thousands) 353,851 342,527
<FN>
<F6> Total return has not been audited prior to 1994.
<F7> Effective December 31, 1995, this ratio reflects total expenses before
reduction for fees paid indirectly; such reductions are included in the
ratio of net expenses.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Year Ended December 31, 1989 1988
<S> <C> <C>
Net asset value, beginning of year $1.000 $1.000
Income from investment operations
Net investment income .082 .067
Distributions from
Net investment income (.082) (.067)
Net asset value, end of year $1.000 $1.000
Total return<F8> 6.57% 6.91%
Ratio to average net assets
Net investment income 8.21% 6.65%
Total expenses<F9> -- --
Net expenses .85% .92%
Net assets, end of year (in thousands) $359,274 $367,321
Number of shares outstanding at end
of year (in thousands) 359,654 367,725
<FN>
<F8> Total return has not been audited prior to 1994.
<F9> Effective December 31, 1995, this ratio reflects total expenses before
reduction for fees paid indirectly; such reductions are included in the
ratio of net expenses.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Year Ended December 31, 1987 1986
<S> <C> <C>
Net asset value, beginning of year $1.000 $1.000
Income from investment operations
Net investment income .059 .062
Distributions from
Net investment income (.059) (.062)
Net asset value, end of year $1.000 $1.000
Total return<F10> 5.88% 6.26%
Ratio to average net assets
Net investment income 5.70% 6.08%
Total expenses<F11> -- --
Net expenses .89% .88%
Net assets, end of year (in thousands) $393,272 $471,944
Number of shares outstanding at end
of year (in thousands) 393,590 472,204
<FN>
<F10> Total return has not been audited prior to 1994.
<F11> Effective December 31, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; such reductions are included
in the ratio of net expenses.
</FN>
</TABLE>
INVESTMENT OBJECTIVE AND POLICIES
The Fund seeks to earn the highest possible yield consistent with
safety, liquidity, and preservation of capital. In pursuing its
objective, the Fund invests solely in debt obligations issued or
guaranteed by the United States, its agencies or instrumentalities,
assignments of interest in such obligations, and commitments to purchase
such obligations ("U.S. Government-backed obligations"). The Fund may
invest in U.S. Government-backed obligations subject to repurchase
agreements with the recognized securities dealers and banks.
U.S. Government Obligations
Obligations issued by the U.S. Treasury, such as U.S. Treasury bills,
notes and bonds, are supported by the full faith and credit of the U.S.
Government.
Securities issued by the U.S. Government include a variety of Treasury
securities which differ only in their interest rates, maturities, and
time of issuance. In addition, numerous agencies (such as Government
National Mortgage Association, Farmers Home Administration, Federal
Housing Administration, and Small Business Administration) and
instrumentalities (such as Federal Home Loan Mortgage Corporation,
Federal National Mortgage Association, Student Loan Marketing
Association and Federal Home Loan Bank) issue or guarantee obligations.
Some of these securities are supported by the full faith and credit of
the U.S. Treasury; others are supported by the right of the issuer to
borrow from the Treasury; still others are supported only by the credit
of the instrumentality.
Repurchase Agreements
The Fund may enter into repurchase agreements. In a repurchase
agreement, the Fund buys a security subject to the right and obligation
to sell it back at a higher price. These transactions must be fully
secured at all times, but they involve some credit risk to the Fund if
the other party defaults on its obligation and the Fund is delayed or
prevented from liquidating the collateral.
Bank CDs
The Fund may also invest in certificates of deposit and other debt
obligations of commercial banks, savings banks, and savings and loan
associations having assets of less than $1 billion, provided that the
principal amount of such certificate is insured in full by the Federal
Deposit Insurance Corporation ("FDIC"). The FDIC presently insures
accounts up to $100,000; interest earned above $100,000 is not insured
by the FDIC.
Variable Rate Obligations
The Fund may invest in variable and floating rate obligations. Variable
rate obligations have a yield which is adjusted periodically based upon
changes in the level of prevailing interest rates. Floating rate
obligations have an interest rate fixed to a known lending rate, such as
the prime rate, and are automatically adjusted when that rate changes.
Variable and floating rate obligations lessen the capital fluctuations
usually inherent in fixed income investments, to diminish the risk of
capital depreciation of investments and shares; but this also means that
should interest rates decline, the yield of each class of the Fund will
decline and the Fund would not have as many opportunities for capital
appreciation of Fund investments.
Other Policies
Investments in Government-backed securities are subject to certain
market risks, and there is, of course, no assurance that the Fund will
be successful in meeting its investment objective.
The Fund may temporarily borrow money from banks (and pledge its assets
to secure such borrowing) to meet redemption requests. Such borrowing
may not exceed 25% of the value of the Fund's total assets. The Fund has
adopted certain fundamental investment restrictions which are discussed
in detail in the Statement of Additional Information. Unless
specifically noted otherwise, the investment objective, policies and
restrictions of the Fund are fundamental and may not be changed without
shareholder approval.
YIELD
Yield refers to income generated by an investment over a period of time.
The Fund may advertise "yield" and "effective yield." Yield figures are
based on historical earnings and are not intended to indicate future
performance. The "yield" of the Fund refers to the actual income
generated by an investment in the Fund over a particular base period,
stated in the advertisement. If the base period is less than one year,
the yield will be "annualized." That is, the amount of income generated
by the investment during the base period is assumed to be generated over
a one-year period and is shown as a percentage of the investment. The
"effective yield" is calculated like yield, but assumes reinvestment of
earned income and accordingly produces a higher figure. The effective
yield will be slightly higher than the yield because of the compounding
effect of this assumed reinvestment.
MANAGEMENT OF THE FUND
The Board of Trustees supervises the activities and reviews its
contracts with companies that provide the Fund with services.
Calvert First Government Money Market Fund is a series of First Variable
Rate Fund for Government Income, an open-end diversified management
investment company, organized as a Massachusetts business trust. Since
September 1, 1991, the series has been doing business as Calvert First
Government Money Market Fund.
The Fund is not required to hold annual shareholder meetings, but
special meetings may be called for certain purposes such as electing
Trustees, changing fundamental policies, or approving a management
contract. As a shareholder, you receive one vote for each share you own.
Calvert Group is one of the largest investment management firms in the
Washington, D.C. area.
Calvert Group, Ltd., parent of the Fund's investment advisor, transfer
agent, and distributor, is a subsidiary of Acacia Mutual Life Insurance
Company of Washington, D.C. Calvert Group is one of the largest
investment management firms in the Washington, D.C. area. Calvert Group,
Ltd. and its subsidiaries are located at 4550 Montgomery Avenue, Suite
1000N, Bethesda, Maryland 20814. As of December 31, 1995, Calvert Group
managed and administered assets in excess of $4.8 billion and more than
200,000 shareholder and depositor accounts.
Calvert Asset Management serves as Advisor to the Fund.
Calvert Asset Management Company, Inc. (the "Advisor") is the Fund's
investment advisor. The Advisor provides the Fund with investment
supervision and management, administrative services and office space;
furnishes executive and other personnel to the Fund; and pays the
salaries and fees of all Trustees who are affiliated persons of the
Advisor. The Advisor may also assume and pay certain advertising and
promotional expenses of the Fund and reserves the right to compensate
broker-dealers in return for their promotional or administrative
services.
The Advisor receives a fee based on a percentage of the Fund's assets.
For its services during fiscal year 1995, the Advisor was entitled,
pursuant to the Investment Advisory Agreement to receive, and did
receive 0.50% of the Fund's average daily net assets as investment
advisory fees.
Calvert Distributors, Inc. serves as underwriter to market the Fund's
shares.
Calvert Distributors, Inc. ("CDI") is the Fund's principal underwriter
and distributor. Under the terms of its underwriting agreement with the
Fund, CDI markets and distributes the Fund's shares and is responsible
for preparing advertising and sales literature, and printing and mailing
prospectuses to prospective investors. CDI does not receive any
compensation from the Fund's Class A Shares, although from its own
resources the Distributor may pay broker-dealer firms at rates up to
0.20% of the average daily net assets maintained in Fund accounts
administered by the respective firms.
Arrangements with Broker-Dealers and Others
CDI may also pay additional concessions, including non-cash promotional
incentives, such as merchandise or trips, to dealers 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 dealer's registered representatives, advertising or
equipment, or to defray the expenses of sales contests.
The transfer agent keeps your account records.
Calvert Shareholder Services, Inc. is the Fund's transfer, dividend
disbursing and shareholder servicing agent.
SHAREHOLDER GUIDE
Opening An Account
You can buy shares of the Fund in several ways which are described here
and in the chart on page __.
An account application accompanies this prospectus. A completed and
signed application is required for each new account you open, regardless
of the method you choose for making your initial investment. Additional
forms may be required from corporations, associations, and certain
fiduciaries. If you have any questions or need extra applications, call
your broker, or Calvert Group at 800-368-2748.
To invest in any of Calvert's tax-deferred retirement plans, please call
Calvert Group at 800-368-2748 to receive information and the required
separate application.
NET ASSET VALUE
The Fund's shares are sold without a sales charge.
Net asset value, or "NAV", refers to the worth of one share. NAV is
computed by adding the value of a Fund's investments plus cash and other
assets, deducting liabilities and then dividing the result by the number
of shares outstanding. The NAV is calculated at the close of the Fund's
business day, which coincides with the closing of the regular session of
the New York Stock Exchange (normally 4:00 p.m. Eastern time). The Fund
is open for business each day the New York Stock Exchange is open. The
Fund securities are valued according to the "amortized cost" method,
which is intended to stabilize the NAV at $1.00 per share.
All purchases of Fund shares will be confirmed and credited to your
account in full and fractional shares (rounded to the nearest 1/100 of a
share). The Fund may send monthly statements in lieu of immediate
confirmations of purchases and redemptions.
HOW TO BUY SHARES
Method New Accounts Additional Investments
By Mail $2,000 minimum $250 minimum
Please make your check Please make your check
payable to the Fund payable to the Fund
and mail it with your and mail it with your
investment slip to: application to:
Calvert Group Calvert Group
P.O. Box 419739 P.O. Box 419544
Kansas City, MO Kansas City, MO
64141-6739 64141-6544
By Registered, Certified, or Overnight Mail:
Calvert Group Calvert Group
c/o NFDS, 6th Floor c/o NFDS, 6th Floor
1004 Baltimore 1004 Baltimore
Kansas City, MO Kansas City, MO
64105-1807 64105-1807
Through Your Broker $2,000 minimum $250 minimum
At the Calvert Visit the Calvert Branch Office to
make investments by check.
Branch Office See back cover page for the address.
FOR ALL OPTIONS BELOW, PLEASE CALL YOUR BROKER, OR CALVERT GROUP AT
800-368-2745
By Exchange $2,000 minimum $250 minimum
(From your account in another Calvert Group Fund)
When opening an account by exchange, your new account must be
established with the same name(s), address and taxpayer identification
number as your existing Calvert account.
By Bank Wire $2,000 minimum $250 minimum
By Calvert Money Not Available for $50 minimum
Controller* Initial Investment
*Please allow sufficient time for Calvert Group to process your initial
request for this service, normally 10 business days. The maximum
transaction amount is $300,000, and your purchase request must be
received by 4:00 p.m. Eastern time.
WHEN YOUR ACCOUNT WILL BE CREDITED
Before you buy shares, please read the following information to make
sure your investment is accepted and credited properly.
All of your purchases must be made in U.S. dollars and checks must be
drawn on U.S. banks. No cash 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. If your check does not clear, your
purchase will be canceled and you will be charged a $10 fee plus costs
incurred by the Fund. When you purchase by check or with Calvert Money
Controller, those funds will be on hold for up to 10 business days from
the date of receipt. During that period, redemptions against those funds
(including drafts) will not be honored. To avoid this collection period,
you can wire federal funds from your bank, which may charge you a fee.
Your purchase will be processed at the net asset value calculated after
your order is received and accepted. The Portfolio attempts to maintain
a constant net asset value of $1.00 per share. Except in the case of
telephone orders, investors whose payments are received in or converted
into federal funds by 12:30 p.m. Eastern time by the custodian will
receive the dividend declared that day. If your wire purchase is
received after 12:30 p.m. Eastern time, your account will begin earning
dividends on the next business day. A telephone order placed to Calvert
Institutional Marketing Services by 12:30 p.m. Eastern time will become
effective at the price determined at 5 p.m. Eastern time and the shares
purchased will receive the dividend declared on Fund shares that day if
federal funds are received by the custodian by 5 p.m. Eastern time.
Exchanges begin earning dividends the next business day after the
exchange request is received by mail or by telephone. If the purchase is
by check and is received by 4 p.m. Eastern time, it will begin earning
dividends the next business day. Check purchases received at the branch
location will be credited the next business day. Any check purchase
received without an investment slip may cause delayed crediting.
EXCHANGES
You may exchange shares of the Fund for shares of other Calvert Group
Funds.
If your investment goals change, the Calvert Group Family of Funds has a
variety of investment alternatives that includes common stock funds,
tax-exempt and corporate bond funds, and money market funds. The
exchange privilege is a convenient way to buy shares in other Calvert
Group Funds in order to respond to changes in your goals or in market
conditions. Before you make an exchange from a Fund or Portfolio, please
note the following:
Call your broker or a Calvert representative for information and a
prospectus for any of Calvert's other Funds registered in your
state. Read the prospectus of the Fund or Portfolio into which you
want to exchange for relevant information, including class offerings.
Each exchange represents the sale of shares of one Fund and the
purchase of shares of another.
Complete and sign an application for an account in that Fund or
Portfolio, 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.
Shares on which you have already paid a sales charge or shares
acquired by reinvestment of dividends or distributions at Calvert
Group may be exchanged into another Fund at no additional charge.
For purposes of the exchange privilege, effective July 31, 1996, the
Portfolio is related to Summit Cash Reserves Fund by investment and
investor services. The Fund reserves the right to terminate or modify
the exchange privilege with 60 days' written notice.
OTHER CALVERT GROUP SERVICES
Calvert Information Network
Calvert Group has a round-the-clock telephone service that lets existing
customers use a push button phone to obtain prices, performance
information, account balances, and authorize certain transactions.
Calvert Money Controller
Calvert Money Controller eliminates the delay of mailing a check or the
expense of wiring funds. You can request this free service on your
application.
This service allows you to authorize electronic transfers of money to
purchase or sell shares. You use Calvert Money Controller like an
"electronic check" to move money ($50 to $300,000) between your bank
account and your Calvert Group account with one phone call. Allow two
business days after the call for the transfer to take place; for money
recently invested, allow normal check clearing time (up to 10 business
days) before redemption proceeds are sent to your bank.
You may also arrange systematic monthly or quarterly investments
(minimum $50) into your Calvert Group account. After you give us proper
authorization, your bank account will be debited to purchase Fund
shares. A debit entry will appear on your bank statement. If you would
like to make arrangements for systematic monthly or quarterly
redemptions from your Calvert Group account, call your broker or Calvert
for a Money Controller Application.
Telephone Transactions
Calvert may record all telephone calls.
You may purchase, redeem, or exchange shares, wire funds and use Calvert
Money Controller by telephone if you have pre-authorized service
instructions. You automatically have telephone privileges unless you
elect otherwise. The Fund, the transfer agent and their affiliates are
not liable for acting in good faith on telephone instructions relating
to your account, so long as they follow reasonable procedures to
determine that the telephone instructions are genuine. Such procedures
may include recording the telephone calls and requiring some form of
personal identification. You should verify the accuracy of telephone
transactions immediately upon receipt of your confirmation statement.
Optional Services
Complete the application for the easiest way to establish services.
The easiest way to establish optional services on your Calvert Group
account is to select the options you desire when you complete your
account application. If you wish to add other options later, you may
have to provide us with additional information and a signature
guarantee. Please call your broker or Calvert Investor Relations at
800-368-2745 for further assistance. For our mutual protection, we may
require a signature guarantee on certain written transaction requests. A
signature guarantee verifies the authenticity of your signature, and may
be obtained from any bank, savings and loan association, credit union,
trust company, broker-dealer firm or member of a domestic stock
exchange. A signature guarantee cannot be provided by a notary public.
Householding of General Mailings
Householding reduces Fund expenses and saves paper and trees for the
environment.
If you have multiple accounts with Calvert, you may receive combined
mailings of some shareholder information, such as semi-annual and annual
reports. Please contact Calvert Investor Relations at 800-368-2745 to
receive additional copies of information.
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 research fee for
these special services.
If you are purchasing shares of the Fund through a program of services
offered by a broker-dealer or financial institution, you should read the
program materials in conjunction with this Prospectus. Certain features
may be modified in these programs, and administrative charges may be
imposed by the broker-dealer or financial institution for the services
rendered.
Tax-Saving Retirement Plans
Contact Calvert Group for complete information kits discussing the
plans, and their benefits, provisions and fees.
Calvert Group can set up your new account under one of several
tax-deferred plans. These plans let you invest for retirement and
shelter your investment income from current taxes. Minimums may differ
from those listed in the chart on page _____.
Individual retirement accounts (IRAs): available to anyone who has
earned income. You may also be able to make investments in the name
of your spouse, if your spouse has no earned income.
Qualified Profit-Sharing and Money-Purchase Plans (including 401(k)
Plans): available to self-employed people and their partners, or to
corporations and their employees.
Simplified Employee Pension Plan (SEP-IRA): available to
self-employed people and their partners, or to corporations. Salary
reduction pension plans (SAR-SEP IRAs) are also available to
employers with 25 or fewer employees.
403(b)(7) Custodial Accounts: available to employees of most
non-profit organizations and public schools and universities.
SELLING YOUR SHARES
You may redeem all or a portion of your shares on any business day. Your
shares will be redeemed at the next net asset value calculated after
your redemption request is received and accepted. See below for specific
requirements necessary to make sure your redemption request is
acceptable. Remember that the Fund may hold payment on the redemption of
your shares until it is reasonably satisfied that investments made by
check or by Calvert Money Controller have been collected (normally up to
10 business days).
Redemption Requirements To Remember
To ensure acceptance of your redemption request, please follow the
procedures described here and below.
Once your shares are redeemed, the proceeds will normally be sent to you
on the next business day, but if making immediate payment could
adversely affect the Fund, it may take up to seven (7) days. Calvert
Money Controller redemptions generally will be credited to your bank
account on the second business day after your phone call. When the New
York Stock Exchange 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.
If you sell shares by telephone or written request, you will receive
dividends through the date the request is received and processed. If you
write a draft to sell shares, the shares will earn dividends until the
draft is presented to the Fund to be paid.
Minimum account balance is $1,000.
Please maintain a balance in your account of at least $1,000. If, due to
redemptions, the account falls below $1,000, or you fail to invest at
least $1,000, it may be closed and the proceeds mailed to you at the
address of record. You will have 30 days' notice that your account will
be closed unless you make an additional investment to increase your
account balance to the $1,000 minimum.
HOW TO SELL YOUR SHARES
Draftwriting
You may redeem shares in your account by writing a draft for at least
$250. If you complete and return a signature card for Draftwriting, the
Fund will mail bank drafts to you, printed with your name and address.
Generally, there is no charge to you for the maintenance of this service
or the clearance of drafts, but the Fund reserves the right to charge a
service fee for drafts returned for uncollected or insufficient funds.
The Portfolio will charge $25 for any stop payments on drafts. As a
service to shareholders, the Fund may automatically transfer the dollar
amount necessary to cover drafts you have written on the Fund to your
Fund account from any other of your identically registered accounts in
Calvert money market funds or Calvert Insured Plus. The Fund may charge
a fee for this service.
By Mail To:
Calvert Group
P.O. Box 419544
Kansas City, MO
64179-6544
You may redeem available shares from your account at any time by sending
a letter of instruction, including your name, account and Fund number,
the number of shares or dollar amount, and where you want the money to
be sent. Additional requirements, below, may apply to your account. The
letter of instruction must be signed by all required authorized signers.
If you want the money to be wired to a bank not previously authorized,
then a voided bank check must be enclosed with your letter. If you do
not have a voided check or if you would like funds sent to a different
address or another person, your letter must be signature guaranteed.
Type of Requirements
Registration
Corporations, Associations Letter of instruction and a corporate
resolution, signed by person(s)
authorized to act on the account,
accompanied by signature guarantee(s).
Trusts Letter of instruction signed by the
Trustee(s) (as Trustee), with a
signature guarantee. (If the
Trustee's name is not registered on
your account, provide a copy of the
trust document, certified within the
last 60 days.)
By Telephone
Please call 800-368-2745. You may redeem shares from your account by
telephone and have your money mailed to your address of record or wired
to an address or bank you have previously authorized. A charge of $5 is
imposed on wire transfers of less than $1,000. See "Telephone
Transactions" on page ___.
Calvert Money Controller
Please allow sufficient time for Calvert Group to process your initial
request for this service (normally 10 business days). You may also
authorize automatic fixed amount redemptions by Calvert Money
Controller. All requests must be received by 4:00 p.m. Eastern time.
Accounts cannot be closed by this service.
Exchange to Another Calvert Group Fund
You must meet the minimum investment requirement of the other Calvert
Group Fund or Portfolio. You can only exchange between accounts with
identical names, addresses and taxpayer identification number, unless
previously authorized with a signature-guaranteed letter.
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 each 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.
Through your Broker
If your account is held in your broker's name ("street name"), you
should contact your broker directly to transfer, exchange or redeem
shares.
DIVIDENDS AND TAXES
Each year, the Fund distributes substantially all of its net investment
income to shareholders.
Dividends from the Fund's net investment income are declared daily and
paid monthly. Net investment income consists of interest income, net
short-term capital gains, if any, and dividends declared and paid on
investments, less expenses. Dividend and distribution payments will vary
between classes; dividend payments will generally be higher for Class A
shares.
Dividend payment options
Dividends and any distributions are automatically reinvested in
additional shares of the Fund, unless you elect to have the dividends of
$10 or more paid in cash (by check or by Calvert Money Controller).
Dividends and distributions from the Fund may also be invested in shares
of any other Calvert Group Fund or Portfolio, at no additional charge.
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
U.S. Postal Service cannot deliver the check, or if it remains uncashed
for six months, it, as well as future dividends and distributions, will
be reinvested in additional shares.
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
by the Fund during the past year. 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 Fund shares.
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 U.S. 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 the Fund to withhold 31% of your dividends. In
addition, you may be subject to a fine. 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 at the current NAV on the date of redemption. The Fund
reserves the right to reject any new account or any purchase order for
failure to supply a certified TIN.
TABLE OF Fund Expenses Net Asset Value
CONTENTS Financial Highlights When Your Account Will Be
Investment Objectives Credited
and Policies Exchanges
Yield Other Calvert Group Services
Management of the Fund Selling Your Shares
SHAREHOLDER GUIDE: How to Sell Your Shares
How to Buy Shares Dividends and Taxes
To Open an Account: Prospectus
800-368-2748 April 30, 1996
Performance and Prices:
Calvert Information Network CALVERT FIRST GOVERNMENT
24 hours, 7 days a week MONEY MARKET FUND
800-368-2745
Service for Existing Account:
Shareholders 800-368-2745
Brokers 800-368-2746
TDD for Hearing Impaired:
800-541-1524
Branch Office:
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
Registered, Certified or
Overnight Mail:
Calvert Group
c/o NFDS, 6th Floor
1004 Baltimore
Kansas City, MO 64105
Calvert Group Web-Site
Address: http://www.calvertgroup.com
PRINCIPAL UNDERWRITER
Calvert Distributors, Inc.
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
<PAGE>
First Variable Rate Fund:
Calvert First Government Money Market Fund
Statement of Additional Information
April 30, 1996
INVESTMENT ADVISOR TRANSFER AGENT
Calvert Asset Management Company, Inc. Calvert Shareholder Services, Inc.
4550 Montgomery Avenue 4550 Montgomery Avenue
Suite 1000N Suite 1000N
Bethesda, Maryland 20814 Bethesda, Maryland 20814
INDEPENDENT ACCOUNTANTS PRINCIPAL UNDERWRITER
Coopers & Lybrand, L.L.P. Calvert Distributors, Inc.
217 Redwood Street 4550 Montgomery Avenue
Baltimore, Maryland 21202-3316 Suite 1000N
Bethesda, Maryland 20814
TABLE OF CONTENTS
Investment Objective and Strategy 1
Investment Restrictions 1
Dividends and Distributions 2
Tax Matters 2
Net Asset Value 3
Calculation of Yield 3
Advertising 3
Purchases and Redemption of Shares 4
Trustees and Officers 4
Investment Advisor 6
Transfer and Shareholder Servicing Agent 7
Portfolio Transactions 7
Independent Accountants and Custodians 7
General Information 7
Financial Statements 8
STATEMENT OF ADDITIONAL INFORMATION-April 30, 1996
FIRST VARIABLE RATE FUND:
CALVERT FIRST GOVERNMENT MONEY MARKET FUND
4550 Montgomery Avenue, Suite 1000N, Bethesda, Maryland 20814
==========================================================================
New Account (800) 368-2748 Shareholder (800) 368-2745
Information: (301) 951-4820 Services: (301) 951-4810
Broker (800) 368-2746 TDD for the Hearing-
Services: (301) 951-4850 Impaired: (800) 541-1524
==========================================================================
This Statement of Additional Information is not a prospectus.
Investors should read the Statement of Additional Information in
conjunction with the First Variable Rate Fund Calvert First Government
Money Market Fund (the Fund) Prospectus, dated April 30, 1996, which
may be obtained free of charge by writing or calling the Fund at the
telephone numbers listed above.
==========================================================================
INVESTMENT OBJECTIVE AND STRATEGY
==========================================================================
In pursuing its objective of earning the highest possible yield
consistent with safety, liquidity, and preservation of capital, the Fund
invests solely in debt obligations issued or guaranteed by the United
States, its agencies or instrumentalities, assignments of interest in
such obligations, and commitments to purchase such obligations ("U.S.
Government-backed obligations"). The Fund may invest in U.S.
Government-backed obligations subject to repurchase agreements with
recognized securities dealers and banks.
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. If the seller were to become
bankrupt, the Fund might realize a loss if the value of the underlying
security did not equal or exceed the repurchase price. In order to
minimize the risk of investing in repurchase agreements, the Fund
engages in such transactions only with recognized securities dealers and
banks and in all instances holds underlying securities with a value
equal to the total repurchase price such dealer or bank has agreed to
pay. Repurchase agreements are always for periods of less than one year
and no more than 10% of the Fund's assets may be invested in repurchase
agreements not terminable within seven days.
Although all the securities purchased by the Fund are
Government-backed as to principal or secured by such securities, some of
the types of Government securities the Fund buys may be sold at a
premium which is not backed by a Government guarantee. The premiums are
amortized over the life of the security; however, if a security should
default or be prepaid, the Fund could realize as a loss the unamortized
portion of such premium.
In the Government-guaranteed loan market, most purchases of new
issues are made under firm (forward) commitment agreements. Purchases of
long-term fixed rate debt securities under such agreements can involve
risk of loss due to changes in the market rate of interest between the
commitment date and the settlement date. Forward commitment agreements
for variable rate securities, unlike such agreements for fixed rate
securities, are stable in value; the Fund's Advisor believes the risk of
loss under forward commitment agreements involving variable rate
obligations to be insignificant.
All the Fund's investments maturing in more than one year will
have a variable rate feature under which the yield is adjusted
periodically based upon changes in money market rates such as prime.
Such adjustments will be made at least semi-annually. Variable rate
securities minimize the wide fluctuations in capital value that
represent the traditional drawback to such long-term investments; but
this also means that should interest rates decline, the amount of return
paid by the Fund will decline and the Fund will forego the opportunity
of capital appreciation on its portfolio securities.
The foregoing objective and policies may not be altered without
the prior approval of the holders of a majority of the outstanding
shares of the Fund. There is, of course, no assurance that the Fund will
be successful in meeting the above investment objective.
==========================================================================
INVESTMENT RESTRICTIONS
==========================================================================
The Fund has adopted the following investment restrictions and
fundamental policies. These restrictions cannot be changed without the
approval of the holders of a majority of the outstanding shares of the
Fund. The Fund may not:
(1) Purchase common stocks, preferred stocks, warrants,
other equity securities, corporate bonds or debentures,
state bonds, municipal bonds, or industrial revenue
bonds;
(2) Borrow money, except from banks as a temporary
measure for emergency (not leveraging) purposes in an
amount not greater than 25% of the value of the Fund's
total assets (including the amount borrowed) at the
time the borrowing is made. Investment securities will
not be purchased while borrowings are outstanding.
Borrowings will only be undertaken to facilitate the
meeting of redemption requests;
(3) Pledge its assets, except to secure borrowing for
temporary or emergency purposes and then only in an
amount up to 25% of its total assets. Although the Fund
has the right to pledge in excess of 10% of the value
of its assets, it will not do so as a matter of
operating policy in order to comply with certain state
investment restrictions;
(4) Sell securities short;
(5) Write or purchase put or call options;
(6) Underwrite the securities of other issuers;
(7) Purchase a security which is subject to legal or
contractual restrictions on resale, i.e., restricted
securities;
(8) Purchase or sell real estate investment trust
securities, commodities, or oil and gas interests;
(9) Make loans to others, except for repurchase
transactions (the purchase of a portion of publicly
distributed debt securities is not considered the
making of a loan);
(10) Invest in companies for the purpose of exercising
control; or invest in the securities of other
investment companies, except as they may be acquired as
part of a merger, consolidation or acquisition of
assets, or in connection with a trustee's/director's
deferred compensation plan, as long as there is no
duplication of advisory fees.
==========================================================================
DIVIDENDS AND DISTRIBUTIONS
==========================================================================
Dividends from the Fund's net investment income are declared
daily and paid monthly. Net investment income consists of the interest
income earned on investments (adjusted for amortization of original
issue or market discount or premium), less expenses. Realized and
unrealized gains and losses are not included in net investment income.
Net short-term capital gains will be distributed once each year,
although the Fund may distribute them more frequently if necessary in
order to maintain the Fund's net asset value at $1.00 per share.
Distributions of net capital gains, if any, are normally declared and
paid by the Fund once a year; however, the Fund does not intend to make
any such distributions from securities profits unless available loss
carryovers, if any, have been used or have expired.
Purchasers of Fund shares begin receiving dividends from the
date federal funds are received by the Fund. Purchases by bank wire
received by the Fund's custodian prior to 12:30 p.m., Eastern time,
represent immediately available federal funds. Shareholders redeeming
shares by telephone, electronic funds transfer or written request will
receive dividends through the date that the redemption request is
received; shareholders redeeming shares by draft will receive dividends
up to the date such draft is presented to the Fund for payment.
==========================================================================
TAX MATTERS
==========================================================================
In 1995 the Fund did qualify and in 1996 the Fund intends to
qualify as a "regulated investment company" under Subchapter M of the
Internal Revenue Code, as amended. By so qualifying, the Fund will not
be subject to federal income taxes, nor to the federal excise tax
imposed by the Tax Reform Act of 1986, to the extent that it distributes
its net investment income and net capital gains.
Dividends of net investment income and distributions of net
short-term capital gains, whether taken in cash or reinvested in
additional shares, are taxable to shareholders as ordinary income and do
not qualify for the dividends received deduction for corporations. Net
long-term capital gain distributions, if any, will generally be
includable as long-term capital gain in the gross income of shareholders
who are citizens or residents of the United States. Whether such
realized securities gains and losses are long-or short-term depends on
the period the securities are held by the Fund, not the period for which
the shareholder holds shares of the Fund.
The Fund is required to withhold 31% of any dividends
(including long-term capital gain dividends, if any) 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; 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 of dividends withheld.
Shareholders exempt from backup withholding include:
corporations; financial institutions, tax-exempt organizations;
individual retirement plans; the U.S., a state, the District of
Columbia, a U.S. possession, a foreign government, an international
organization, or any political subdivision, agency or instrumentality of
any of the foregoing; U.S. registered commodities or securities dealers;
real estate investment trusts; registered investment companies; bank
common trust funds; certain charitable trusts; and foreign central banks
of issue. Non-resident aliens also are generally not subject to backup
withholding but, along with certain foreign partnerships and foreign
corporations, may instead be subject to withholding under section 1441
of the Internal Revenue Code. Shareholders claiming exemption from
backup withholding should call or write the Fund for further information.
Many states do not tax the portion of the Fund's dividends
which is derived from interest on U.S. Government obligations. The law
of the states varies concerning the tax status of dividends derived from
U.S. Government obligations. Accordingly, shareholders should consult
their tax advisors about the tax status of dividends and distributions
from the Fund in their respective jurisdictions.
==========================================================================
NET ASSET VALUE
==========================================================================
The net asset value per share of the Fund, the price at which
shares are continuously issued and redeemed, is computed by dividing the
value of the Fund's total assets, less its liabilities, by the total
number of shares outstanding. Net asset value is determined every
business day at the close of the New York Stock Exchange (generally,
4:00 p.m. Eastern time), and at such other times as may be appropriate
or necessary. 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, Presidents' Day, Good Friday, Memorial Day,
Independence Day, Labor Day, Thanksgiving Day, and Christmas Day.
The Fund's assets, including securities subject to repurchase
agreements, are normally valued at their amortized cost which does not
take into account unrealized capital gains or losses. This involves
valuing an instrument at its cost and thereafter assuming a constant
amortization to maturity of any discount or premium, regardless of the
impact of fluctuating interest rates on the market value of the
instrument. While this method provides certainty in valuation, it may
result in periods during which value, as determined by amortized cost,
is higher or lower than the price that would be received upon sale of
the instrument. During periods of declining interest rates, the daily
yield on shares of the Fund may tend to be higher than a like
computation made by a fund with identical investments utilizing a method
of valuation based upon market prices and estimates of market prices for
all of its portfolio instruments. Thus, if the use of amortized cost by
the Fund resulted in a lower aggregate portfolio value on a particular
day, a prospective investor in the Fund would be able to obtain a
somewhat higher yield than would result from investment in a fund
utilizing solely market values, and existing investors in the Fund would
receive less investment income. The converse would apply in a period of
rising interest rates.
Rule 2a-7 under the Investment Company Act of 1940 permits the
Fund to value its assets at amortized cost if the Fund maintains a
dollar-weighted average maturity of 90 days or less and only purchases
obligations having remaining maturities of 13 months or less. Rule 2a-7
further requires, as a condition of its use, that the Fund invest only
in obligations determined by the Trustees to be of high quality with
minimal credit risks and requires the Trustees to establish procedures
designed to stabilize, to the extent reasonably possible, the Fund's
price per share as computed for the purpose of sales and redemptions at
$1.00. Such procedures include review of the Fund's investment holdings
by the Trustees, at such intervals as they may deem appropriate, to
determine whether the Fund's net asset value calculated by using
available market quotations or equivalents deviates from $1.00 per
share. If such deviation exceeds l/2 of 1%, the Trustees will promptly
consider what action, if any, will be initiated. In the event the
Trustees determine that a deviation exists which may result in material
dilution or other unfair results to investors or existing shareholders,
the Trustees will take such corrective action as they regard as
necessary and appropriate, including: the sale of portfolio instruments
prior to maturity to realize capital gains or losses or to shorten
average portfolio maturity; the withholding of dividends or payment of
distributions from capital or capital gains; redemptions of shares in
kind; or the establishment of a net asset value per share based upon
available market quotations.
Net Asset Value and Offering Price Per Share
($241,149,633/241,685,337 shares) $1.00
==========================================================================
CALCULATION OF YIELD
==========================================================================
Yield is calculated by dividing the net change exclusive of
capital changes in the value of a share during a particular base period
by the net asset value per share at the beginning of such period and
annualizing the result. Capital changes excluded from the calculation of
yield are: (1) realized gains and losses from the sale of securities,
and (2) unrealized appreciation and depreciation. The Fund's effective
yield for a seven-day period is its annualized compounded average yield
during the period, calculated according to the following formula:
Effective yield = [(base period return + 1)365/7] - 1
For the seven day period ended December 29, 1995, the Fund's yield was
4.76% and effective yield was 4.87%.
The Fund's yield fluctuates in response to changes in interest
rates and general economic conditions, portfolio quality, portfolio
maturity, and operating expenses. Yield is not fixed or insured and
therefore is not comparable to a savings or other similar type account.
Yield during any particular time period should not be considered an
indication of future yield. It is, however, useful in evaluating the
Fund's performance in meeting its investment objective.
==========================================================================
ADVERTISING
==========================================================================
The Fund or its affiliates may provide information such as, but
not limited to, the economy, investment climate, investment principles,
sociological conditions and political ambiance. Discussion may include
hypothetical scenarios or lists of relevant factors designed to aid the
investor in determining whether the Fund is compatible with the
investor's goals. The Fund may list portfolio holdings or give examples
or securities that may have been considered for inclusion in the Fund,
whether held or not.
The Fund or its affiliates may supply comparative performance
data and rankings from independent sources such as Donoghue's Money Fund
Report, Bank Rate Monitor, Money, Forbes, Lipper Analytical Services,
Inc., CDA Investment Technologies, Inc., Wiesenberger Investment
Companies Service, 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.
==========================================================================
PURCHASES AND REDEMPTION OF SHARES
==========================================================================
Share certificates will not be issued unless requested in
writing by the investor. No charge will be made for share certificate
requests. No certificates will be issued for fractional shares (see
Prospectus, "How to Sell Your Shares").
Shareholders wishing to use the draft writing service should
complete the signature card enclosed with the Investment Application.
The draft writing service will be subject to the customary rules and
regulations governing checking accounts, and the Fund reserves the right
to change or suspend the service. Generally, there is no charge to you
for the maintenance of this service or the clearance of drafts, but the
Fund reserves the right to charge a service fee for drafts returned for
uncollected or insufficient funds, and will charge $25 for stop
payments. As a service to shareholders, the Fund may automatically
transfer the dollar amount necessary to cover drafts you have written on
the Fund to your Fund account from any other of your identically
registered accounts in Calvert money market funds or Calvert Insured
Plus. The Fund may charge a fee for this service.
When a payable through draft is presented to the Custodian for
payment, a sufficient number of full and fractional shares from the
shareholder's account to cover the amount of the draft will be redeemed
at the net asset value next determined. If there are insufficient shares
in the shareholder's account, the draft may be returned. Drafts
presented for payment which would require the redemption of shares
purchased by check or electronic funds transfer within the previous 10
business days may not be honored.
Existing shareholders who at any time desire to arrange for the
telephone redemption procedure, or to change instructions already given,
must send a written notice to Calvert Group, P.O. Box 419544, Kansas
City, MO 64141-6544, with a voided copy of a check for the bank wiring
instructions to be added. If a voided check does not accompany the
request, then the request must be signature guaranteed by a commercial
bank, savings and loan association, trust company, member firm of any
national securities exchange, or credit union. Further documentation may
be required from corporations, fiduciaries, and institutional investors.
The right of redemption may be suspended or the date of payment
postponed for any period during which the New York Stock Exchange is
closed (other than customary weekend and holiday closings), when trading
on the New York Stock Exchange is restricted, or an emergency exists, as
determined by the SEC, or if the Commission has ordered such a
suspension for the protection of shareholders. Redemption proceeds are
normally mailed or wired the next business day after a proper redemption
request has been received, unless redemptions have been suspended or
postponed as described above.
==========================================================================
TRUSTEES AND OFFICERS
==========================================================================
RICHARD L. BAIRD, JR., Trustee. Mr. Baird is Director of
Finance for the Family Health Council, Inc. in Pittsburgh, Pennsylvania,
a non-profit corporation which provides family planning services,
nutrition, maternal/child health care, and various health screening
services. Mr. Baird is a trustee/director of each of the investment
companies in the Calvert Group of Funds, except for Acacia Capital
Corporation, Calvert New World Fund and Calvert World Values Fund. Age:
47. Address: 211 Overlook Drive, Pittsburgh, Pennsylvania 15216.
FRANK H. BLATZ, JR., Esq., Trustee. Mr. Blatz is a partner in
the law firm of Snevily, Ely, Williams, Gurrieri & Blatz. He was
formerly a partner with Abrams, Blatz, Gran, Hendricks & Reina, P.A.
Age: 59. Address: 308 East Broad Street, PO Box 2007, Westfield, New
Jersey 07091.
FREDERICK T. BORTS, M.D., Trustee. Dr. Borts is a radiologist
with Kaiser Permanente. Prior to that, he was a radiologist at Bethlehem
Medical Imaging in Allentown, Pennsylvania. Age: 46. Address: 2040
Nuuanu Avenue #1805, Honolulu, Hawaii, 96817.
<F1> CHARLES E. DIEHL, Trustee. Mr. Diehl is Vice President and
Treasurer Emeritus of the George Washington University, and has retired
from University Support Services, Inc. of Herndon, Virginia. He is also
a Director of Acacia Mutual Life Insurance Company. Age: 73. Address:
1658 Quail Hollow Court, McLean, Virginia 22101.
DOUGLAS E. FELDMAN, M.D., Trustee. Dr. Feldman practices head
and neck reconstructive surgery in the Washington, D.C., metropolitan
area. Age: 47. Address: 7536 Pepperell Drive, Bethesda, Maryland 20817.
PETER W. GAVIAN, CFA, Trustee. Mr. Gavian was a principal of
Gavian De Vaux Associates, an investment banking firm. He continues to
be President of with Corporate Finance of Washington, Inc. Age: 63.
Address: 3005 Franklin Road North, Arlington, Virginia 22201.
JOHN G. GUFFEY, JR., Trustee. Mr. Guffey is chairman of the
Calvert Social Investment Foundation, organizing director of the
Community Capital Bank in Brooklyn, New York, and a financial consultant
to various organizations. In addition, he is a Director of the Community
Bankers Mutual Fund of Denver, Colorado, and the Treasurer and Director
of Silby, Guffey, and Co., Inc., a venture capital firm. Mr. Guffey is a
trustee/director of each of the other investment companies in the
Calvert Group of Funds, except for Acacia Capital Corporation and
Calvert New World Fund. Age: 47. Address: 7205 Pomander Lane, Chevy
Chase, Maryland 20815.
ARTHUR J. PUGH, Trustee. Mr. Pugh serves as a Director of
Acacia Federal Savings Bank. Age: 58. Address: 4823 Prestwick Drive,
Fairfax, Virginia 22030.
1 DAVID R. ROCHAT, Senior Vice President and Trustee. Mr.
Rochat is Executive Vice President of Calvert Asset Management Company,
Inc., Director and Secretary of Grady, Berwald and Co., Inc., and
Director and President of Chelsea Securities, Inc. Age: 58. Address: Box
93, Chelsea, Vermont 05038.
<F1> D. WAYNE SILBY, Esq., Trustee. Mr. Silby is a
trustee/director of each of the investment companies in the Calvert
Group of Funds, except for Acacia Capital Corporation and Calvert New
World Fund. Mr. Silby is an officer, director and shareholder of Silby,
Guffey & Company, Inc., which serves as general partner of Calvert
Social Venture Partners ("CSVP"). CSVP is a venture capital firm
investing in socially responsible small companies. He is also a Director
of Acacia Mutual Life Insurance Company. Age: 47. Address: 1715 18th
Street, N.W., Washington, D.C. 20009.
<F1> CLIFTON S. SORRELL, JR., President and Trustee. Mr. Sorrell
serves as President, Chief Executive Officer and Vice Chairman of
Calvert Group, Ltd. and as an officer and director of each of its
affiliated companies. He is a director of Calvert-Sloan Advisers,
L.L.C., and a trustee/director of each of the investment companies in
the Calvert Group of Funds. Age: 54.
<F1> RENO J. MARTINI, Senior Vice President. Mr. Martini is a
director and Senior Vice President of Calvert Group, Ltd., and Senior
Vice President and Chief Investment Officer of Calvert Asset Management
Company, Inc. Mr. Martini is also a director and President of
Calvert-Sloan Advisers, L.L.C., and a director and officer of Calvert
New World Fund. Age: 46.
<F1> RONALD M. WOLFSHEIMER, CPA, Treasurer. Mr. Wolfsheimer is
Senior Vice President and Controller of Calvert Group, Ltd. and its
subsidiaries and an officer of each of the other investment companies in
the Calvert Group of Funds. Mr. Wolfsheimer is Vice President and
Treasurer of Calvert-Sloan Advisers, L.L.C., and a director of Calvert
Distributors, Inc. Age: 43.
<F1> WILLIAM M. TARTIKOFF, Esq., Vice President and Assistant
Secretary. Mr. Tartikoff is an officer of each of the investment
companies in the Calvert Group of Funds, and is Senior Vice President,
Secretary, and General Counsel of Calvert Group, Ltd., and each of its
subsidiaries. Mr. Tartikoff is also Vice President and Secretary of
Calvert-Sloan Advisers, L.L.C., a director of Calvert Distributors,
Inc., and is an officer of Acacia National Life Insurance Company. Age:
48.
<F1> EVELYNE S. STEWARD, Vice President. Ms. Steward is a director
and Senior Vice President of Calvert Group, Ltd., and a director of
Calvert-Sloan Advisers, L.L.C. She is the sister of Philip J. Schewetti,
the portfolio manager of the CSIF Equity Portfolio. Age: 43.
<F1> DANIEL K. HAYES, Vice President. Mr. Hayes is Vice President
of Calvert Asset Management Company, Inc., and is an officer of each of
the other investment companies in the Calvert Group of Funds, except for
Calvert New World Fund, Inc. Age: 45.
<F1> SUSAN WALKER BENDER, Esq., Assistant Secretary. Ms. Bender is
Associate General Counsel of Calvert Group, Ltd. and an officer of each
of its subsidiaries and Calvert-Sloan Advisers, L.L.C. She is also an
officer of each of the other investment companies in the Calvert Group
of Funds. Age: 37.
_________
<F1> Officers and trustees deemed to be "interested persons" of the Fund
under the Investment Company Act of 1940, by virtue of their affiliation
with the Fund's Advisor.
Each of the above named trustees and officers is a trustee or
officer of each of the investment companies in the Calvert Group of
Funds with the exception of Calvert Social Investment Fund, of which
only Messrs. Baird, Guffey, Silby and Sorrell are among the Trustees,
Acacia Capital Corporation, of which only Messrs. Sorrell, Blatz, Diehl
and Pugh are among the Directors, Calvert World Values Fund, Inc., of
which only Messrs. Guffey, Silby, and Sorrell are among the Directors,
and Calvert New World Fund, Inc., of which only Messrs. Sorrell and
Martini are among the Directors. The address of Trustees and Officers,
unless otherwise noted, is 4550 Montgomery Avenue, Suite 1000N,
Bethesda, Maryland 20814. Trustees and Officers as a group own less than
1% of the Portfolio's outstanding shares.
The Board's Audit Committee is composed of Messrs. Baird,
Blatz, Feldman, Guffey and Pugh. The Investment Policy Committee is
composed of Messrs. Borts, Diehl, Gavian, Rochat, Silby and Sorrell.
During fiscal 1995, trustees of the Fund not affiliated with
the Fund's Advisor were paid $20,486. Trustees of the Fund not
affiliated with the Advisor presently receive an annual fee of $20,250
for service as a member of the Board of Trustees of the Calvert Group of
Funds, and a fee of $750 to $1200 for each regular Board or Committee
meeting attended; such fees are allocated among the respective Funds on
the basis of net assets.
Trustees of the Fund not affiliated with the Fund's Advisor may
elect to defer receipt of all or a percentage of their fees and invest
them in any fund in the Calvert Family of Funds through the Trustees
Deferred Compensation Plan (shown as "Pension or Retirement Benefits
Accrued as part of Fund Expenses," below). 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, and will ensure that there is no duplication of
advisory fees.
Trustee Compensation Table
Fiscal Year 1995 (unaudited Aggregate Compensation from
numbers) Registrant for service as
Trustee
Name of Trustee
..............................................................
Richard L. Baird, Jr. $2,330
Frank H. Blatz, Jr. $2,351
Frederick T. Borts $1,638
Charles E. Diehl $2,264
Douglas E. Feldman $2,211
Peter W. Gavian $2,243
John G. Guffey, Jr. $2,243
Arthur J. Pugh $2,351
D. Wayne Silby $2,157
Fiscal Year 1995 (unaudited Pension or Retirement
numbers) Benefits Accrued as part
of Registrant Expenses<F2>
Name of Trustee
.............................................................
Richard L. Baird, Jr. $0
Frank H. Blatz, Jr. $2,351
Frederick T. Borts $0
Charles E. Diehl $2,264
Douglas E. Feldman $0
Peter W. Gavian $673
John G. Guffey, Jr. $0
Arthur J. Pugh $0
D. Wayne Silby $0
<F2> Messrs. Blatz, Diehl, Gavian, and Pugh have chosen to defer a portion
of their compensation. As of December 31, 1995, total deferred
compensation, including dividends and capital appreciation, was
$415,719, $337,395, $89,054, and $150,841, for each trustee,
respectively
Fiscal Year 1995 (unaudited Total Compensation from
numbers) Registrant and Fund Complex
paid to Trustees<F3>
Name of Trustee
..............................................................
Richard L. Baird, Jr. $33,450
Frank H. Blatz, Jr. $36,801
Frederick T. Borts $25,050
Charles E. Diehl $35,101
Douglas E. Feldman $30,600
Peter W. Gavian $31,951
John G. Guffey, Jr. $40,450
Arthur J. Pugh $36,801
D. Wayne Silby $47,965
<F3> As of December 31, 1995. The Fund Complex consists of eight (8)
registered investment companies.
==========================================================================
INVESTMENT ADVISOR
==========================================================================
The Fund's Investment Advisor is Calvert Asset Management
Company, Inc., 4550 Montgomery Avenue, Suite 1000N, Bethesda, Maryland
20814, a subsidiary of Calvert Group, Ltd., which is a subsidiary of
Acacia Mutual Life Insurance Company of Washington, D.C.
The Advisory Contract (the "Contract") between the Fund and the
Advisor will remain in effect indefinitely, provided continuance is
approved at least annually by the vote of the holders of a majority of
the outstanding shares of the Fund or by the Board of Trustees of the
Fund; and further provided that such continuance is also approved
annually by the vote of a majority of the Trustees of the Fund who are
not parties to the Contract, interested persons of parties to the
Contract, or interested persons of such parties, cast in person at a
meeting called for the purpose of voting on such approval. The Contract
may be terminated without penalty by either party upon 60 days' prior
written notice; it automatically terminates in the event of its
assignment.
Under the 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 Trustees. For its services, the
Advisor receives a fee of 0.50% of the first $500 million of the average
daily net assets of the Fund, 0.45% of the next $400 million of such
assets, 0.40% of the next $400 million of such assets, 0.35% of the next
$700 million of such assets, and 0.30% on all assets in excess of $2
billion. Such fee is payable monthly.
The Advisor provides the Fund with investment advice and
research, office space, administrative services, furnishes executive and
other personnel to the Fund, pays the salaries and fees of all trustees
who are affiliated persons of the Advisor, and pays all Fund advertising
and promotional expenses. The Advisor reserves the right to compensate
broker-dealers in consideration of their promotional or administrative
services for Class O shares. The Fund pays all other operating expenses,
including custodial and transfer agency fees, federal and state
securities registration fees, legal and audit fees, and brokerage
commissions and other costs associated with the purchase and sale of
portfolio securities. However, the Advisor has agreed to reimburse the
Fund for all expenses (excluding brokerage, taxes, interest, and
extraordinary items) exceeding, on a pro rata basis, 1% of the Fund's
average daily net assets.
The advisory fees paid to the Advisor under the Advisory
Contract for the 1993, 1994, and 1995 fiscal years were $1,423,906,
$1,254,576, and $1,182,171, respectively. No expense reimbursements have
been required under the Contract.
==========================================================================
TRANSFER AND SHAREHOLDER SERVICING AGENT
==========================================================================
Calvert Shareholder Services, Inc., a subsidiary of Calvert
Group, Ltd., and Acacia Mutual, has been retained by the Fund to act as
transfer agent, dividend disbursing agent and shareholder servicing
agent. These responsibilities include: responding to shareholder
inquiries and instructions concerning their accounts; crediting and
debiting shareholder accounts for purchases and redemptions of Fund
shares and confirming such transactions; daily updating of shareholder
accounts to reflect declaration and payment of dividends; and preparing
and distributing quarterly statements to shareholders regarding their
accounts. For such services, Calvert Shareholder Services, Inc. receives
compensation based on the number of shareholder accounts and the number
of transactions. For its fiscal years ended December 31, 1993, 1994, and
1995, the Fund paid Calvert Shareholder Services, Inc. fees of $568,668,
$509,155, and $556,450, respectively.
==========================================================================
PORTFOLIO TRANSACTIONS
==========================================================================
Portfolio transactions are undertaken on the basis of their
desirability from an investment standpoint. Investment decisions and
choice of brokers and dealers are made by the Fund's Advisor under the
direction and supervision of the Fund's Board of Trustees.
It is intended that all securities maturing in more than one
year will be held to maturity. Sales of securities to facilitate the
redemption of Fund shares is contemplated, but such sales will be
primarily from the short-term instruments in the Fund's portfolio on
which brokerage charges, if any, are minimal. The Fund anticipates that
its portfolio turnover rate with respect to securities with maturities
in excess of one year will be no more than 5%.
Broker-dealers who execute portfolio transactions on behalf of
the Fund are selected on the basis of their professional capability and
the value and quality of their services. The Advisor reserves the right
to place orders for the purchase of sale of portfolio securities with
dealers who provide it with statistical, research, or other information
and services. Although any statistical, research, or other information
and services provided by dealers may be useful to the Advisor, the
dollar value of such information is generally indeterminable, and its
availability or receipt does not serve to materially reduce the
Advisor's normal research activities or expenses. No brokerage
commissions have been paid to any broker-dealer that provided the Fund's
Advisor with research or other services.
The Advisor may also execute portfolio transactions with or
through broker-dealers who have sold shares of the Fund. However, such
sales will not be a qualifying or disqualifying factor in a
broker-dealer's selection nor will the selection of any broker-dealer be
based on the volume of Fund shares sold. The Advisor may compensate, at
its expense, such broker-dealers in consideration of their promotional
and administrative services.
==========================================================================
INDEPENDENT ACCOUNTANTS AND CUSTODIANS
==========================================================================
Coopers & Lybrand, L.L.P., has been selected by the Board of
Trustees to serve as independent accountants for fiscal year 1996. State
Street Bank & Trust Company, N.A., 225 Franklin Street, Boston,
Massachusetts 02110, currently serves as custodian of the Portfolio's
investments. First National Bank of Maryland, 25 South Charles Street,
Baltimore, Maryland 21203 also serves as custodian of certain of the
Portfolio's cash assets. Neither custodian has any part in deciding the
Portfolio's investment policies or the choice of securities that are to
be purchased or sold for the Portfolio.
==========================================================================
GENERAL INFORMATION
==========================================================================
The Fund is organized as a Massachusetts business trust, and
has two series. The first series, Calvert First Government Money Market
Fund, was known as First Variable Rate Fund prior to September 1, 1991.
The second series is Calvert Florida Municipal Intermediate Fund. Prior
to April 30, 1984, the Fund was organized as a Maryland corporation. The
Fund's Declaration of Trust contains an express disclaimer of
shareholder liability for acts or obligations of the Fund. The
shareholders of Massachusetts business trust might, however, under
certain circumstances, be held personally liable as partners for its
obligations. The Declaration of Trust provides for indemnification and
reimbursement of expenses out of Fund assets for any shareholder held
personally liable for obligations of the Fund. The Declaration of Trust
provides that the Fund shall, upon request, assume the defense of any
claim made against any shareholder for any act or obligation of the Fund
and satisfy any judgment thereon. The Declaration of Trust further
provides that the Fund may maintain appropriate insurance (for example,
fidelity bonding and errors and omissions insurance) for the protection
of the Fund, its shareholders, trustees, officers, employees and agents
to cover possible tort and other liabilities. Thus, the risk of a
shareholder incurring financial loss on account of shareholder liability
is limited to circumstances in which both inadequate insurance exists
and the Fund itself is unable to meet its obligations.
The Fund will send its shareholders confirmations of purchase
and redemption transactions, as well as periodic transaction statements
and unaudited semi-annual and audited annual financial statements of the
Fund's investment securities, assets and liabilities, income and
expenses, and changes in net assets.
The Prospectus and this Statement of Additional Information do
not contain all the information in the Fund's registration statement.
The registration statement is on file with the Securities and Exchange
Commission and is available to the public.
FINANCIAL STATEMENTS
The audited financial statements included in the Fund's Annual
Report to Shareholders dated December 31, 1995 are expressly
incorporated by reference and made a part of this Statement of
Additional Information. A copy of the Annual Report may be obtained free
of charge by writing or calling the Fund.
<PAGE>
PART C. OTHER INFORMATION
Item 24. Financial Statements and Exhibits
(a) Financial statements
Financial statements incorporated by reference
to:
Registrant's audited Annual Report to Shareholders of
Calvert First Government Money Market Fund, dated
December 31, 1995, and filed March 11, 1996.
Schedules II-VII, inclusive, for which provision is
made in the applicable accounting regulation of the
Securities and Exchange Commission, are omitted because
they are not required under the related instructions,
or they are inapplicable, or the required information
is presented in the financial statements or notes
thereto.
(b) Exhibits:
1. Declaration of Trust (incorporated by
reference to Registrant's Post-Effective
Amendment No. 11, May 1, 1984).
2. By-Laws (incorporated by reference to
Registrant's Post-Effective Amendment No. 11,
May 1, 1984).
4. Specimen Stock Certificate, (incorporated by
reference to Registrant's Post-Effective
Amendment No. 19, April 30, 1992).
5. Advisory Contract (incorporated by reference
to Registrant's Post-Effective Amendment No.
11, May 1, 1984).
6. Underwriting and Dealer Agreements, incorporated by
reference to Registrant's Post-Effective Amendment
No. 16, April 28, 1989 and incorporated by reference
to Registrant's Post-Effective Amendment No.
31, April 30, 1995.
7. Trustees' Deferred Compensation
Agreement, (incorporated by reference
to Registrant's Post-Effective
Amendment No. 19, April 30, 1992).
8. Custodial Contract, (incorporated by reference
to Registrant's Post-Effective Amendment No.
4, April 21, 1980).
9. Transfer Agency Contract (incorporated by
reference to Registrant's Post-Effective
Amendment No. 11, May 1, 1984).
10. Opinion and Consent of Counsel as to Legality
of Shares Being Registered.
11. Consent of Independent Accountants to Use of
Report.
14. Retirement Plans (incorporated by reference to
Registrant's Post-Effective Amendment No. 19,
April 30, 1992, and incorporated by reference
to Registrant's Post-Effective Amendment No.
16, April 28, 1989).
15. Plan of Distribution for the Florida Municipal
Intermediate Fund only, filed herewith.
16. Schedule for Computation of Performance
Quotation (incorporated by reference to
Registrant's Post-Effective Amendment No. 15,
April 30, 1988).
17. (i) Financial Data Schedules
18. Funds Multiple Class Plan under Rule 18f-3
dated January 25, 1996 (filed herewith).
Exhibits 3, 12, 13 and 15 are omitted because they are
inapplicable.
Item 25. Persons Controlled By or Under Common Control With Registrant
Registrant is controlled by its Board of Trustees, which is a
common Board with five registered investment companies, First Variable
Rate Fund, Calvert Tax-Free Reserves, Calvert Cash Reserves (doing
business as Money Management Plus), The Calvert Fund, and Calvert
Municipal Fund, Inc. In addition, several members of Registrant's Board
of Trustees also serve on the Boards of Calvert Social Investment Fund,
Acacia Capital Corporation, Calvert New World Fund, Inc., and Calvert
World Values Fund, Inc.
Item 26. Number of Holders of Securities
As of March 31, 1996, there were 15,327 holders of record
of Registrant's shares of beneficial interest for the Calvert
First Government Money Market Fund series of First Variable
Rate Fund for Government Income.
As of March 31, 1996 there were 56 holders of record
of Registrant's shares of beneficial interest for the Class A
shares of Calvert Florida Municipal Intermediate Fund series of
First Variable Rate Fund for Government Income.
As of March 31, 1996 there were 23 holders of record
of Registrant's shares of beneficial interest for the Class C
shares of Calvert Florida Municipal Intermediate Fund series of
First Variable Rate Fund for Government Income.
Item 27. Indemnification
Registrant's Declaration of Trust, which Declaration is Exhibit
1 of this Registration Statement, provides, in summary, that officers,
trustees, employees, and agents 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 trustees 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's Declaration of Trust also provides that 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 maintains 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 $3 million in excess directors and officers liability coverage for
the independent trustees/directors only. Registrant also maintains a $9
million Investment Company Blanket Bond issued by ICI Mutual Insurance
Company, P.O. Box 730, Burlington, Vermont, 05402, and an additional $5
million in excess of $9 million blanket bond with Chubb Group of
Insurance Companies, 15 Mountain View Road, Warren, New Jersey 07061.
Item 28. Business and Other Connections of Investment Adviser
Name Name of Company, Principal Capacity
Business and Address
Clifton S.
Sorrell, Jr. Acacia Capital Corporation Officer
Calvert Municipal Fund, Inc. and
Calvert World Values Fund, Inc. Director
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Asset Management Officer
Company, Inc. and
Investment Advisor Director
4550 Montgomery Avenue
Bethesda, MD 20814
----------------
Calvert Group, Ltd. Officer
Holding Company and
4550 Montgomery Avenue Director
Bethesda, MD 20814
----------------
Calvert Shareholder Officer
Services, Inc. and
Transfer Agent Director
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Administrative Officer
Services Company and
Service Company Director
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Distributors, Inc. Director
Broker-Dealer
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
First Variable Rate Fund for Officer
Government Income and
Calvert Tax-Free Reserves Trustee
Calvert Social Investment Fund
Money Management Plus
The Calvert Fund
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert-Sloan Advisers, LLC Director
Investment Advisor
4550 Montgomery Avenue
Bethesda, Md. 20814
---------------
Calvert New World Fund, Inc. Director
Investment Company
4550 Montgomery Avenue
Bethesda, Md. 20814
--------------
Item 28. Business and Other Connections of Investment Adviser
Name Name of Company, Principal Capacity
Business and Address
Ronald M. First Variable Rate Fund Officer
Wolfsheimer for Government Income
Calvert Tax-Free Reserves
Money Management Plus
Calvert Social Investment Fund
The Calvert Fund
Acacia Capital Corporation
Calvert Municipal Fund, Inc.
Calvert World Values Fund, Inc.
Calvert New World Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
--------------
Calvert Asset Management Officer
Company, Inc.
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Group, Ltd. Officer
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Shareholder Officer
Services, Inc.
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Administrative Officer
Services Company and
Service Company Director
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, Md. 20814
---------------
Item 28. Business and Other Connections of Investment Adviser
Name Name of Company, Principal Capacity
Business and Address
David R. Rochat First Variable Rate Fund for Officer
Government Income and
Calvert Tax-Free Reserves Trustee
Money Management Plus
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 Officer
Company, Inc. and
Investment Advisor Director
4550 Montgomery Avenue
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
---------------
Item 28. Business and Other Connections of Investment Adviser
Name Name of Company, Principal Capacity
Business and Address
Reno J. Martini Calvert Asset Management Officer
Company, Inc.
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
Money Management Plus
Calvert Social Investment Fund
The Calvert Fund
Acacia Capital Corporation
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, Md. 20814
---------------
Charles T. Nason Acacia Mutual Life Insurance Officer
Acacia National Life Insurance and
Insurance Companies Director
51 Louisiana Avenue, NW
Washington, D.C. 20001
---------------
Acacia Financial Corporation Officer
Holding Company and
51 Louisiana Avenue, NW Director
Washington, D.C. 20001
---------------
Gardner Montgomery CompanyDirector
Tax Return Preparation Services
51 Louisiana Avenue, NW
Washington, D.C. 20001
----------------
Item 28. Business and Other Connections of Investment Adviser
Name Name of Company, Principal Capacity
Business and Address
Charles T. Nason Acacia Federal Savings Bank Director
(continued) Savings Bank
7600-B Leesburg Pike
Falls Church, Virginia 22043
---------------
Enterprise Resources, Inc. Director
Business Support Services
51 Louisiana Avenue, NW
Washington, D.C. 20001
---------------
Acacia Insurance Management Officer
Services Corporation and
Service Corporation Director
51 Louisiana Avenue, N.W.
Washington, D.C. 20001
---------------
Calvert Group, Ltd. Director
Holding Company
4550 Montgomery Avenue
Bethesda, MD 20814
---------------
Calvert Administrative Director
Services Co.
Service Company
4550 Montgomery Avenue
Bethesda, MD 20814
---------------
Calvert Asset Management Co., Inc. Director
Investment Advisor
4550 Montgomery Avenue
Bethesda, MD 20814
---------------
Calvert Shareholder Services, Inc. Director
Transfer Agent
4550 Montgomery Avenue
Bethesda, MD 20814
---------------
Calvert Social Investment Fund Trustee
Investment Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
-----------------
The Advisors Group, Inc. Director
Broker-Dealer and
Investment Advisor
51 Louisiana Avenue, NW
Washington, D.C. 20001
---------------
Item 28. Business and Other Connections of Investment Adviser
Name Name of Company, Principal Capacity
Business and Address
Robert-John H. Acacia National Life Insurance Officer
Sands Insurance Company and
51 Louisiana Avenue, NW Director
Washington, D.C. 20001
----------------
Acacia Mutual Life Insurance Officer
Insurance Company
51 Louisiana Avenue, NW
Washington, D.C. 20001
----------------
Acacia Financial Corporation Officer
Holding Company and
51 Louisiana Avenue, NW Director
Washington, D.C. 20001
----------------
Acacia Federal Savings Bank Officer
Savings Bank
7600-B Leesburg Pike
Falls Church, Virginia 22043
---------------
Enterprise Resources, Inc. Director
Business Support Services
51 Louisiana Avenue, NW
Washington, D.C. 20001
---------------
Acacia Realty Corporation Officer
Real Estate Investments
51 Louisiana Avenue, NW
Washington, D.C. 20001
---------------
Acacia Insurance Management Officer
Services Corporation and
Service Corporation Director
51 Louisiana Avenue, N.W.
Washington, D.C. 20001
---------------
Gardner Montgomery Company Officer
Tax Return Preparation Service and
51 Louisiana Avenue, NW Director
Washington, D.C. 20001
----------------
The Advisors Group, Inc. Director
Broker-Dealer and
Investment Advisor
51 Louisiana Avenue, NW
Washington, D.C. 20001
---------------
Item 28. Business and Other Connections of Investment Adviser
Name Name of Company, Principal Capacity
Business and Address
Robert-John H. Calvert Group, Ltd. Director
Sands Holding Company
(continued) 4550 Montgomery Avenue
Bethesda, MD 20814
---------------
Calvert Administrative Director
Services, Co.
Service Company
4550 Montgomery Avenue
Bethesda, MD 20814
---------------
Calvert Asset Management Co., Inc. Director
Investment Advisor
4550 Montgomery Avenue
Bethesda, MD 20814
---------------
Calvert Shareholder Services, Inc. Director
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
William M. Tartikoff Acacia National Life Insurance Officer
Insurance Company
51 Louisiana Avenue, NW
Washington, D.C. 20001
----------------
First Variable Rate Fund for Officer
Government Income
Calvert Tax-Free Reserves
Money Management Plus
Calvert Social Investment Fund
The Calvert Fund
Acacia Capital Corporation
Calvert Municipal Fund, Inc.
Calvert World Values Fund, Inc.
Calvert New World Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Group, Ltd. Officer
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Item 28. Business and Other Connections of Investment Adviser
Name Name of Company, Principal Capacity
Business and Address
William M. Tartikoff Calvert Administrative Officer
(continued) Services Company
Service Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Asset Management Officer
Company, Inc.
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Shareholder Officer
Services, Inc.
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, L.L.C. Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Item 28. Business and Other Connections of Investment Adviser
Name Name of Company, Principal Capacity
Business and Address
Susan Walker Bender 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 Officer
Company, Inc.
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Shareholder Officer
Services, Inc.
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Distributors, Inc. Officer
Broker-Dealer
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert-Sloan Advisers, L.L.C. Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
First Variable Rate Fund for Officer
Government Income
Calvert Tax-Free Reserves
Money Management Plus
Calvert Social Investment Fund
The Calvert Fund
Acacia Capital Corporation
Calvert Municipal Fund, Inc.
Calvert World Values Fund, Inc.
Calvert New World Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Item 28. Business and Other Connections of Investment Adviser
Name Name of Company, Principal Capacity
Business and Address
Daniel K. Hayes Calvert Asset Management Officer
Company, Inc.
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
First Variable Rate Fund Officer
for Government Income
Calvert Tax-Free Reserves
Money Management Plus
Calvert Social Investment Fund
The Calvert Fund
Acacia Capital Corporation
Calvert Municipal Fund, Inc.
Calvert World Values Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Steve Van Order Calvert Asset Management Officer
Company, Inc.
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Item 29. Principal Underwriters
(a) Registrant's principal underwriter also underwrites
shares of Calvert Tax-Free Reserves, Calvert Social Investment Fund,
Calvert Cash Reserves (d/b/a Money Management Plus), The Calvert Fund,
Calvert Municipal Fund, Inc., Calvert World Values Fund, Inc., Calvert
New World Fund, Inc., and Acacia Capital Corporation.
(b) Positions of Underwriter's Officers and Directors
Name and Principal Position(s) with Position(s) with
Business Address Underwriter Registrant
Clifton S. Sorrell, Jr. Director President and Trustee
Ronald M. Wolfsheimer Director, Senior Treasurer
Vice President
and Controller
William M. Tartikoff Director, Senior Vice Vice President
President, and Secretary and Secretary
Steven J. Schueth President None
Karen Becker Vice President None
Robert Knaus Regional Vice President None
Lee Mahfouz Regional Vice President None
Item 29. Principal Underwriter (continued)
(b) Positions of Underwriter's Officers and Directors
(continued)
Name and Principal Position(s) with Position(s) with
Business Address Underwriter Registrant
Susan Walker Bender Assistant Secretary Assistant Secretary
Katherine Stoner Assistant Secretary None
Lisa Crossley Compliance Officer None
The principal business address of the above individuals is 4550
Montgomery Avenue, Suite 1000N, Bethesda, Maryland 20814.
(c) Inapplicable.
Item 30. Location of Accounts and Records
Ronald M. Wolfsheimer, Treasurer
and
William M. Tartikoff, Secretary
4550 Montgomery Avenue, Suite 1000N
Bethesda, Maryland 20814
Item 31. Management Services
Not Applicable
Item 32. Undertakings
a) Not Applicable
b) Not Applicable
c) The Registrant undertakes to furnish to each person to
whom a Prospectus is delivered, a copy of the
Registrant's latest Annual Report to Shareholders, upon
request and without charge.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and
the Investment Company Act of 1940, the Registrant certifies that it
meets all of the requirements for effectiveness of this registration
statement pursuant to Rule 485(b) under the Securities Act of 1933 and
has duly caused this registration statement to be signed on its behalf
by the undersigned, thereto duly authorized in the City of Bethesda, and
State of Maryland, on the 17th day of April, 1996.
FIRST VARIABLE RATE FUND
FOR GOVERNMENT INCOME
By:
/s/Clifton S. Sorrell, Jr.
Clifton S. Sorrell, Jr.
President and Trustee
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
________________________ Trustee and 04/29/96
Clifton S. Sorrell, Jr. Principal Executive
Officer
________________________ Principal Accounting 04/29/96
Ronald M. Wolfsheimer Officer
__________**____________ Trustee 04/29/96
Richard L. Baird, Jr.
__________**____________ Trustee 04/29/96
Frank H. Blatz, Jr., Esq.
__________**____________ Trustee 04/29/96
Frederick T. Borts, M.D.
__________**____________ Trustee 04/29/96
Charles E. Diehl
__________**____________ Trustee 04/29/96
Douglas E. Feldman
__________**____________ Trustee 04/29/96
Peter W. Gavian
__________**____________ Trustee 04/29/96
John G. Guffey, Jr.
__________**____________ Trustee 04/29/96
Arthur J. Pugh
________________________ Trustee 04/29/96
David R. Rochat
__________**____________ Trustee 04/29/96
D. Wayne Silby
** Signed by Katherine (Thomas) Stoner pursuant to power of attorney,
attached hereto.
/s/Katherine (Thomas) Stoner
<PAGE>
EXHIBIT INDEX
Form N-1A
Item No.
Ex-23
24(b)(10) Form of Opinion and Consent of Counsel
Ex-23
24(b)(11) Independent Auditors' Consent
Ex-24 Power of Attorney
Ex-27
24(17) Financial Data Schedules
Ex-99
24(18) Rule 18f-3 Multiple Class Plan
Exhibit 10
April 29, 1996
Securities and Exchange Commission
Judiciary Plaza
450 Fifth Street, N.W.
Washington, D.C. 20549
Re: Exhibit 10, Form N-1A
First Variable Rate Fund for Government Income
File numbers 2-56809 and 811-2633
Ladies and Gentlemen:
As counsel to Calvert Group, Ltd., it is my opinion that the
securities being registered by this Post-Effective Amendment No. 33 will
be legally issued, fully paid and non-assessable when sold. My opinion
is based on an examination of documents related to First Variable Rate
Fund for Government Income (the "Trust"), including its Declaration of
Trust, its By-Laws, other original or photostatic copies of Trust
records, certificates of public officials, documents, papers, statutes,
and authorities as I deemed necessary to form the basis of this opinion.
I therefore consent to filing this opinion of counsel with the
Securities and Exchange Commission as an Exhibit to the Trust's
Post-Effective Amendment No. 33 to its Registration Statement.
Sincerely,
/s/Katherine Stoner
Katherine Stoner
Assistant Counsel
COOPERS Coopers & Lybrand L.L.P.
&LYBRAND a professional services firm
CONSENT OF INDEPENDENT ACCOUNTANTS
To the Board of Trustees of
First Variable Rate Fund for
Government Income
We consent to the incorporation by reference in Post-Effective Amendment
No. 33 to the Registration Statement of First Variable Rate Fund For Government
Income (comprised of the Calvert First Government Money Market and Calvert
Florida Municipal Intermediate Funds) on Form N-1A (File Numbers 2-56809
and 811-2633) of our reports dated February 9, 1996, on our audits of the
financial statements and financial highlights of the Funds, which reports are
included in the Annual Reports to Shareholders for the year ended December 31,
1995, which are incorporated by reference in the Registration Statement. We
also consent to the reference to our Firm under the caption "Independent
Accountants and Custodians" in the Statement of Additional Information.
COOPERS & LYBRAND, L.L.P.
/Coopers & Lybrand, L.L.P./
Baltimore, Maryland
April 17, 1996
Coopers & Lybrand L.L.P. is a member of Coopers & Lybrand International, a
limited liability association incorporated in Switzerland
POWER OF ATTORNEY
I, the undersigned Trustee/Director of First
Variable Rate Fund for Government Income, Calvert Tax-Free Reserves,
Calvert Cash Reserves (doing business as Money Management Plus), The
Calvert Fund, and Calvert Municipal Fund, Inc. (collectively, the
"Funds"), hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff,
Susan Walker Bender, Beth-ann Roth, and Katherine Stoner my true and
lawful attorneys, with full power to each of them, to sign for me and in
my name in the appropriate capacities, all registration statements and
amendments filed by the Funds with any federal or state agency, and to
do all such things in my name and behalf necessary for registering and
maintaining registration or exemptions from registration of the Funds
with any government agency in any jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things
in my name and behalf to comply with the provisions of all federal,
state and foreign laws, regulations, and policy pronouncements affecting
the Funds, including, but not limited to, the Securities Act of 1933,
the Securities Exchange Act of 1934, the Investment Company Act of 1940,
the Investment Advisers Act of 1940, and all state laws regulating the
securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Funds in
connection with any transaction approved by the Board of
Trustee/Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the
Funds, the signing is automatically ratified and confirmed by me by
virtue of this Power of Attorney.
WITNESS my hand on the date set forth below.
May 4, 1994
Date Signature
Richard L. Baird, Jr.
Witness Name of
Trustee/Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Trustee/Director of First Variable Rate Fund
for Government Income, Calvert Tax-Free Reserves, Calvert Cash Reserves
(doing business as Money Management Plus), The Calvert Fund, and Calvert
Municipal Fund, Inc. (collectively, the "Funds"), hereby constitute
Ronald M. Wolfsheimer, William M. Tartikoff, Susan Walker Bender,
Beth-ann Roth, and Katherine Stoner my true and lawful attorneys, with
full power to each of them, to sign for me and in my name in the
appropriate capacities, all registration statements and amendments filed
by the Funds with any federal or state agency, and to do all such things
in my name and behalf necessary for registering and maintaining
registration or exemptions from registration of the Funds with any
government agency in any jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things
in my name and behalf to comply with the provisions of all federal,
state and foreign laws, regulations, and policy pronouncements affecting
the Funds, including, but not limited to, the Securities Act of 1933,
the Securities Exchange Act of 1934, the Investment Company Act of 1940,
the Investment Advisers Act of 1940, and all state laws regulating the
securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Funds in
connection with any transaction approved by the Board of
Trustee/Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the
Funds, the signing is automatically ratified and confirmed by me by
virtue of this Power of Attorney.
WITNESS my hand on the date set forth below.
May 4, 1994
Date Signature
Frank H. Blatz, Jr.
Witness Name of Trustee/Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Trustee/Director of First Variable Rate Fund
for Government Income, Calvert Tax-Free Reserves, Calvert Cash Reserves
(doing business as Money Management Plus), The Calvert Fund, and Calvert
Municipal Fund, Inc. (collectively, the "Funds"), hereby constitute
Ronald M. Wolfsheimer, William M. Tartikoff, Susan Walker Bender,
Beth-ann Roth, and Katherine Stoner my true and lawful attorneys, with
full power to each of them, to sign for me and in my name in the
appropriate capacities, all registration statements and amendments filed
by the Funds with any federal or state agency, and to do all such things
in my name and behalf necessary for registering and maintaining
registration or exemptions from registration of the Funds with any
government agency in any jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things
in my name and behalf to comply with the provisions of all federal,
state and foreign laws, regulations, and policy pronouncements affecting
the Funds, including, but not limited to, the Securities Act of 1933,
the Securities Exchange Act of 1934, the Investment Company Act of 1940,
the Investment Advisers Act of 1940, and all state laws regulating the
securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Funds in
connection with any transaction approved by the Board of
Trustee/Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the
Funds, the signing is automatically ratified and confirmed by me by
virtue of this Power of Attorney.
WITNESS my hand on the date set forth below.
May 4, 1994
Date Signature
Frederick T. Borts
Witness Name of Trustee/Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Trustee/Director of First Variable Rate Fund
for Government Income, Calvert Tax-Free Reserves, Calvert Cash Reserves
(doing business as Money Management Plus), The Calvert Fund, and Calvert
Municipal Fund, Inc. (collectively, the "Funds"), hereby constitute
Ronald M. Wolfsheimer, William M. Tartikoff, Susan Walker Bender,
Beth-ann Roth, and Katherine Stoner my true and lawful attorneys, with
full power to each of them, to sign for me and in my name in the
appropriate capacities, all registration statements and amendments filed
by the Funds with any federal or state agency, and to do all such things
in my name and behalf necessary for registering and maintaining
registration or exemptions from registration of the Funds with any
government agency in any jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things
in my name and behalf to comply with the provisions of all federal,
state and foreign laws, regulations, and policy pronouncements affecting
the Funds, including, but not limited to, the Securities Act of 1933,
the Securities Exchange Act of 1934, the Investment Company Act of 1940,
the Investment Advisers Act of 1940, and all state laws regulating the
securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Funds in
connection with any transaction approved by the Board of
Trustee/Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the
Funds, the signing is automatically ratified and confirmed by me by
virtue of this Power of Attorney.
WITNESS my hand on the date set forth below.
May 4, 1994
Date Signature
Charles E. Diehl
Witness Name of Trustee/Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Trustee/Director of First Variable Rate Fund
for Government Income, Calvert Tax-Free Reserves, Calvert Cash Reserves
(doing business as Money Management Plus), The Calvert Fund, and Calvert
Municipal Fund, Inc. (collectively, the "Funds"), hereby constitute
Ronald M. Wolfsheimer, William M. Tartikoff, Susan Walker Bender,
Beth-ann Roth, and Katherine Stoner my true and lawful attorneys, with
full power to each of them, to sign for me and in my name in the
appropriate capacities, all registration statements and amendments filed
by the Funds with any federal or state agency, and to do all such things
in my name and behalf necessary for registering and maintaining
registration or exemptions from registration of the Funds with any
government agency in any jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things
in my name and behalf to comply with the provisions of all federal,
state and foreign laws, regulations, and policy pronouncements affecting
the Funds, including, but not limited to, the Securities Act of 1933,
the Securities Exchange Act of 1934, the Investment Company Act of 1940,
the Investment Advisers Act of 1940, and all state laws regulating the
securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Funds in
connection with any transaction approved by the Board of
Trustee/Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the
Funds, the signing is automatically ratified and confirmed by me by
virtue of this Power of Attorney.
WITNESS my hand on the date set forth below.
May 4, 1994
Date Signature
Douglas E. Feldman
Witness Name of Trustee/Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Trustee/Director of First Variable Rate Fund
for Government Income, Calvert Tax-Free Reserves, Calvert Cash Reserves
(doing business as Money Management Plus), The Calvert Fund, and Calvert
Municipal Fund, Inc. (collectively, the "Funds"), hereby constitute
Ronald M. Wolfsheimer, William M. Tartikoff, Susan Walker Bender,
Beth-ann Roth, and Katherine Stoner my true and lawful attorneys, with
full power to each of them, to sign for me and in my name in the
appropriate capacities, all registration statements and amendments filed
by the Funds with any federal or state agency, and to do all such things
in my name and behalf necessary for registering and maintaining
registration or exemptions from registration of the Funds with any
government agency in any jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things
in my name and behalf to comply with the provisions of all federal,
state and foreign laws, regulations, and policy pronouncements affecting
the Funds, including, but not limited to, the Securities Act of 1933,
the Securities Exchange Act of 1934, the Investment Company Act of 1940,
the Investment Advisers Act of 1940, and all state laws regulating the
securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Funds in
connection with any transaction approved by the Board of
Trustee/Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the
Funds, the signing is automatically ratified and confirmed by me by
virtue of this Power of Attorney.
WITNESS my hand on the date set forth below.
May 4, 1994
Date Signature
Peter W. Gavian
Witness Name of Trustee/Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Trustee/Director of First Variable Rate Fund
for Government Income, Calvert Tax-Free Reserves, Calvert Cash Reserves
(doing business as Money Management Plus), The Calvert Fund, and Calvert
Municipal Fund, Inc. (collectively, the "Funds"), hereby constitute
Ronald M. Wolfsheimer, William M. Tartikoff, Susan Walker Bender,
Beth-ann Roth, and Katherine Stoner my true and lawful attorneys, with
full power to each of them, to sign for me and in my name in the
appropriate capacities, all registration statements and amendments filed
by the Funds with any federal or state agency, and to do all such things
in my name and behalf necessary for registering and maintaining
registration or exemptions from registration of the Funds with any
government agency in any jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things
in my name and behalf to comply with the provisions of all federal,
state and foreign laws, regulations, and policy pronouncements affecting
the Funds, including, but not limited to, the Securities Act of 1933,
the Securities Exchange Act of 1934, the Investment Company Act of 1940,
the Investment Advisers Act of 1940, and all state laws regulating the
securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Funds in
connection with any transaction approved by the Board of
Trustee/Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the
Funds, the signing is automatically ratified and confirmed by me by
virtue of this Power of Attorney.
WITNESS my hand on the date set forth below.
May 4, 1994
Date Signature
John G. Guffey, Jr.
Witness Name of Trustee/Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Trustee/Director of First Variable Rate Fund
for Government Income, Calvert Tax-Free Reserves, Calvert Cash Reserves
(doing business as Money Management Plus), The Calvert Fund, and Calvert
Municipal Fund, Inc. (collectively, the "Funds"), hereby constitute
Ronald M. Wolfsheimer, William M. Tartikoff, Susan Walker Bender,
Beth-ann Roth, and Katherine Stoner my true and lawful attorneys, with
full power to each of them, to sign for me and in my name in the
appropriate capacities, all registration statements and amendments filed
by the Funds with any federal or state agency, and to do all such things
in my name and behalf necessary for registering and maintaining
registration or exemptions from registration of the Funds with any
government agency in any jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things
in my name and behalf to comply with the provisions of all federal,
state and foreign laws, regulations, and policy pronouncements affecting
the Funds, including, but not limited to, the Securities Act of 1933,
the Securities Exchange Act of 1934, the Investment Company Act of 1940,
the Investment Advisers Act of 1940, and all state laws regulating the
securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Funds in
connection with any transaction approved by the Board of
Trustee/Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the
Funds, the signing is automatically ratified and confirmed by me by
virtue of this Power of Attorney.
WITNESS my hand on the date set forth below.
May 4, 1994
Date Signature
Arthur J. Pugh
Witness Name of Trustee/Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Trustee/Director of First Variable Rate Fund
for Government Income, Calvert Tax-Free Reserves, Calvert Cash Reserves
(doing business as Money Management Plus), The Calvert Fund, and Calvert
Municipal Fund, Inc. (collectively, the "Funds"), hereby constitute
Ronald M. Wolfsheimer, William M. Tartikoff, Susan Walker Bender,
Beth-ann Roth, and Katherine Stoner my true and lawful attorneys, with
full power to each of them, to sign for me and in my name in the
appropriate capacities, all registration statements and amendments filed
by the Funds with any federal or state agency, and to do all such things
in my name and behalf necessary for registering and maintaining
registration or exemptions from registration of the Funds with any
government agency in any jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things
in my name and behalf to comply with the provisions of all federal,
state and foreign laws, regulations, and policy pronouncements affecting
the Funds, including, but not limited to, the Securities Act of 1933,
the Securities Exchange Act of 1934, the Investment Company Act of 1940,
the Investment Advisers Act of 1940, and all state laws regulating the
securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Funds in
connection with any transaction approved by the Board of
Trustee/Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the
Funds, the signing is automatically ratified and confirmed by me by
virtue of this Power of Attorney.
WITNESS my hand on the date set forth below.
May 4, 1994
Date Signature
David R. Rochat
Witness Name of Trustee/Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Trustee/Director of First Variable Rate Fund
for Government Income, Calvert Tax-Free Reserves, Calvert Cash Reserves
(doing business as Money Management Plus), The Calvert Fund, and Calvert
Municipal Fund, Inc. (collectively, the "Funds"), hereby constitute
Ronald M. Wolfsheimer, William M. Tartikoff, Susan Walker Bender,
Beth-ann Roth, and Katherine Stoner my true and lawful attorneys, with
full power to each of them, to sign for me and in my name in the
appropriate capacities, all registration statements and amendments filed
by the Funds with any federal or state agency, and to do all such things
in my name and behalf necessary for registering and maintaining
registration or exemptions from registration of the Funds with any
government agency in any jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things
in my name and behalf to comply with the provisions of all federal,
state and foreign laws, regulations, and policy pronouncements affecting
the Funds, including, but not limited to, the Securities Act of 1933,
the Securities Exchange Act of 1934, the Investment Company Act of 1940,
the Investment Advisers Act of 1940, and all state laws regulating the
securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Funds in
connection with any transaction approved by the Board of
Trustee/Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the
Funds, the signing is automatically ratified and confirmed by me by
virtue of this Power of Attorney.
WITNESS my hand on the date set forth below.
May 4, 1994
Date Signature
D. Wayne Silby
Witness Name of Trustee/Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Trustee/Director of First Variable Rate Fund
for Government Income, Calvert Tax-Free Reserves, Calvert Cash Reserves
(doing business as Money Management Plus), The Calvert Fund, and Calvert
Municipal Fund, Inc. (collectively, the "Funds"), hereby constitute
Ronald M. Wolfsheimer, William M. Tartikoff, Susan Walker Bender,
Beth-ann Roth, and Katherine Stoner my true and lawful attorneys, with
full power to each of them, to sign for me and in my name in the
appropriate capacities, all registration statements and amendments filed
by the Funds with any federal or state agency, and to do all such things
in my name and behalf necessary for registering and maintaining
registration or exemptions from registration of the Funds with any
government agency in any jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things
in my name and behalf to comply with the provisions of all federal,
state and foreign laws, regulations, and policy pronouncements affecting
the Funds, including, but not limited to, the Securities Act of 1933,
the Securities Exchange Act of 1934, the Investment Company Act of 1940,
the Investment Advisers Act of 1940, and all state laws regulating the
securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Funds in
connection with any transaction approved by the Board of
Trustee/Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the
Funds, the signing is automatically ratified and confirmed by me by
virtue of this Power of Attorney.
WITNESS my hand on the date set forth below.
May 4, 1994
Date Signature
Clifton S. Sorrell, Jr.
Witness Name of Trustee/Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Officer of First Variable Rate Fund for
Government Income, Calvert Tax-Free Reserves, Calvert Cash Reserves
(doing business as Money Management Plus), The Calvert Fund, and Calvert
Municipal Fund, Inc. (collectively, the "Funds"), hereby constitute
William M. Tartikoff, Susan Walker Bender, Beth-ann Roth, and Katherine
Stoner my true and lawful attorneys, with full power to each of them, to
sign for me and in my name in the appropriate capacities, all
registration statements and amendments filed by the Funds with any
federal or state agency, and to do all such things in my name and behalf
necessary for registering and maintaining registration or exemptions
from registration of the Funds with any government agency in any
jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things
in my name and behalf to comply with the provisions of all federal,
state and foreign laws, regulations, and policy pronouncements affecting
the Funds, including, but not limited to, the Securities Act of 1933,
the Securities Exchange Act of 1934, the Investment Company Act of 1940,
the Investment Advisers Act of 1940, and all state laws regulating the
securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Funds in
connection with any transaction approved by the Board of
Trustee/Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the
Funds, the signing is automatically ratified and confirmed by me by
virtue of this Power of Attorney.
WITNESS my hand on the date set forth below.
March 1, 1995
Date Signature
Ronald M. Wolfsheimer
Witness Name of Officer
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000205355
<NAME> FIRST VARIABLE RATE FUND FOR GOVERNMENT INCOME
<SERIES>
<NUMBER> 010
<NAME> CALVERT FIRST GOVERNMENT MONEY MAREKT FUND
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JUN-01-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 240492
<INVESTMENTS-AT-VALUE> 240492
<RECEIVABLES> 1676
<ASSETS-OTHER> 197
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 242365
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1215
<TOTAL-LIABILITIES> 1215
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 241459
<SHARES-COMMON-STOCK> 241685
<SHARES-COMMON-PRIOR> 230618
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (309)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 241150
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 13990
<OTHER-INCOME> 14
<EXPENSES-NET> 2077
<NET-INVESTMENT-INCOME> 11927
<REALIZED-GAINS-CURRENT> 26
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 11953
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (12034)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 353189
<NUMBER-OF-SHARES-REDEEMED> 11827
<SHARES-REINVESTED> (353969)
<NET-CHANGE-IN-ASSETS> 10966
<ACCUMULATED-NII-PRIOR> 108
<ACCUMULATED-GAINS-PRIOR> (345)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1182
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2077
<AVERAGE-NET-ASSETS> 241150
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .051
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> (.051)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> .88
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000205355
<NAME> FIRST VARIABLE RATE FUND FOR GOVERNMENT INCOME
<SERIES>
<NUMBER> 021
<NAME> CALVERT MUNICIPAL INTERMEDIATE FUND - FLORIDA, CLASS A
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JUN-01-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 4036
<INVESTMENTS-AT-VALUE> 4200
<RECEIVABLES> 61
<ASSETS-OTHER> 37
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 4298
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 4
<TOTAL-LIABILITIES> 5
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 3908
<SHARES-COMMON-STOCK> 769
<SHARES-COMMON-PRIOR> 725
<ACCUMULATED-NII-CURRENT> 6
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (147)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 126
<NET-ASSETS> 3893
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 180
<OTHER-INCOME> 0
<EXPENSES-NET> 12
<NET-INVESTMENT-INCOME> 168
<REALIZED-GAINS-CURRENT> 2
<APPREC-INCREASE-CURRENT> 275
<NET-CHANGE-FROM-OPS> 445
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (162)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 871
<NUMBER-OF-SHARES-REDEEMED> (774)
<SHARES-REINVESTED> 126
<NET-CHANGE-IN-ASSETS> 506
<ACCUMULATED-NII-PRIOR> 1
<ACCUMULATED-GAINS-PRIOR> (151)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 21
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 29
<AVERAGE-NET-ASSETS> 3553
<PER-SHARE-NAV-BEGIN> 4.53
<PER-SHARE-NII> .24
<PER-SHARE-GAIN-APPREC> .38
<PER-SHARE-DIVIDEND> (.23)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 5.06
<EXPENSE-RATIO> .35
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000205355
<NAME> FIRST VARIABLE RATE FUND FOR GOVERNMENT INCOME
<SERIES>
<NUMBER> 022
<NAME> CALVERT MUNICIPAL INTERMEDIATE FUND - FLORIDA, CLASS C
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JUN-01-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 4036
<INVESTMENTS-AT-VALUE> 4200
<RECEIVABLES> 61
<ASSETS-OTHER> 37
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 4298
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 4
<TOTAL-LIABILITIES> 5
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 369
<SHARES-COMMON-STOCK> 79
<SHARES-COMMON-PRIOR> 197
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (7)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 38
<NET-ASSETS> 400
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 32
<OTHER-INCOME> 0
<EXPENSES-NET> 8
<NET-INVESTMENT-INCOME> 24
<REALIZED-GAINS-CURRENT> 2
<APPREC-INCREASE-CURRENT> 44
<NET-CHANGE-FROM-OPS> 70
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (24)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 850
<NUMBER-OF-SHARES-REDEEMED> (1437)
<SHARES-REINVESTED> 23
<NET-CHANGE-IN-ASSETS> (518)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (9)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 4
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 13
<AVERAGE-NET-ASSETS> 619
<PER-SHARE-NAV-BEGIN> 4.67
<PER-SHARE-NII> .19
<PER-SHARE-GAIN-APPREC> .37
<PER-SHARE-DIVIDEND> (.18)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 5.05
<EXPENSE-RATIO> 1.25
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
Rule 18f-3 Multiple Class Plan
First Variable Rate Fund
Rule 18f-3 under the Investment Company Act of 1940, as amended
(the "1940 Act"), requires that an investment company desiring to offer
multiple classes of shares pursuant to the Rule adopt a plan setting
forth the differences among the classes with respect to shareholder
services, distribution arrangements, expense allocations and any related
conversion features or exchange privileges. Any material amendment to
the plan must be approved by the investment company's Board of
Trustees/Directors, including a majority of the disinterested Board
members, who must find that the plan is in the best interests of each
class individually and the investment company as a whole.
1. Class Designation. Fund shares shall be designated
either Class A or Class C.
2. Differences in Availability. Class A shares and Class
C shares shall both be available through the same distribution channels,
except that Class C shares; (1) may not be available through some
dealers, and, (2) are not available for purchases of $1 million or more.
3. Differences in Services. The services offered to
shareholders of each Class shall be substantially the same, except that
Rights of Accumulation, Letters of Intent and Reinvestment Privileges
shall be available only to holders of Class A shares.
4. Differences in Distribution Arrangements. Class A
shares shall be offered with a front-end sales charge, as such term is
defined in Article III, Section 26(b), of the Rules of Fair Practice of
the National Association of Securities Dealers, Inc. The amount of the
front-end sales charge on Class A shares is set forth at Exhibit I.
Class A shares shall be subject to a Distribution Plan adopted pursuant
to Rule 12b-1 under the 1940 Act. The amount of the Distribution Plan
expenses for Class A shares, as set forth at Exhibit I, are used to pay
the Fund's Distributor for distributing the Fund's Class A shares. This
amount includes a service fee at the annual rate of .25 of 1% of the
value of the average daily net assets of Class A.
Class C shares shall be subject to neither a front-end sales
charge, nor a contingent deferred sales charge (CDSC). Class C shares
shall be subject to a Distribution Plan adopted pursuant to Rule 12b-1
under the 1940 Act. The amount of the Distribution Plan expenses for
Class C shares is set forth at Exhibit I. The Class C Distribution Plan
pays the Fund's Distributor for distributing the Fund's Class C shares.
This amount includes a service fee at the annual rate of .25 of 1% of
the value of the average daily net assets of Class C.
5. Expense Allocation. The following expenses shall be
allocated, to the extent practicable, on a Class-by-Class basis: (a)
Distribution Plan fees; (b) transfer agent fees and expenses; (c)
printing and postage expenses payable by the Fund relating to preparing
and distributing materials, such as proxies, to current shareholders of
a specific Class; (d) class specific state registration fees; (e) class
specific litigation or other legal expenses; (f) certain class specific
reimbursement from the investment advisor ; (g) certain class specific
contract services (e.g., proxy solicitation); and (h) any other expenses
subsequently identified that, in the opinion of counsel, or the Fund's
independent public accountants are properly allocated by Class.
6. Conversion Features. No Class shall be subject to any
automatic conversion feature.
7. Exchange Privileges. Class A shares shall be
exchangeable only for (a) Class A shares of other funds managed,
administered, or underwritten by Calvert Group; (b) shares of funds
managed, administered or underwritten by Calvert Group which do not have
separate share classes; and (c) shares of certain other funds specified
from time to time.
Class C shares shall be exchangeable only for (a) Class C
shares of other funds managed, administered or underwritten by Calvert
Group; (b) Class A shares of other funds managed, administered or
underwritten by Calvert Group, if the front-end load on the Class A
shares is paid at the time of the exchange; and (c) shares of certain
other funds specified from time to time.
Dated: January 25, 1996
<PAGE>
EXHIBIT I
First Variable Rate Fund
Maximum Class A Maximum
Class A Maximum Class C
Front-End Sales 12b-1 Fee
12b-1 fee
Charge
Florida Municipal Intermediate 2.75% 0.25%*
0.80%
* The Class A 12b-1 Plan limits this to 0.15% through December 31, 1998.
