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. 39 XX
and/or
REGISTRATION STATEMENT UNDER THE
INVESTMENT COMPANY ACT OF 1940
Amendment No. 39 XX
First Variable Rate Fund for Government Income
(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) 951-4881
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, 1999
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.
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PROSPECTUS
April 30, 1999
Calvert First Government Money Market Fund
About the Fund
2 Investment Objective
2 Principal Risks
3 Past Performance
4 Fees and Expenses
About Your Investment
6 Advisory Fees
6 How to Buy Shares
6 Getting Started
6 Choosing a Share Class
7 Calculation of CDSC/Waiver
8 Distribution and Service Fees
9 Account Application
9 Important - How Shares are Priced
10 When Your Account Will be Credited
10 Other Calvert Group Features
(Exchanges, Minimum Account Balance, etc.)
13 Dividends and Taxes
14 How to Sell Shares
16 Financial Highlights
These securities have not been approved or disapproved by the Securities and
Exchange Commission ("SEC") or any State Securities Commission, nor has the
SEC or any State Securities Commission passed on the accuracy or adequacy of
this prospectus. Any representation to the contrary is a criminal offense.
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Fundamental Goal - Investment Objective
Calvert First Government Money Market 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.
Principal Investment Strategies
Fund assets are invested in short-term money market instruments, such as:
obligations issued by the U.S. Treasury, such as U.S. Treasury bills, notes
and bonds, supported by the full faith and credit of the U.S. Government;
Securities issued by the U.S. Government, its agencies and instrumentalities;
repurchase agreements; and
variable-rate demand notes.
Principal Risks
The yield of the Fund will change daily, depending on market interest rates,
and tends to follow the same direction as the rates.
Dividends paid by the Fund will fluctuate as interest rates and net
investment income fluctuate.
Investments in obligations not guaranteed by the full faith and credit of
the U.S. Government are subject to the ability of the issuer to make payment
at maturity.
The yield of the Fund will change in response to market interest rates. In
general, as market rates go up so will the Fund's yield, and vice versa.
Although the Fund tries to keep the value of its shares constant at $1.00
per share, extreme changes in market rates, and/or sudden credit
deterioration of a holding could cause the value to decrease. The Fund
limits the amount invested in any one issuer to try to lessen exposure.
An investment in the Fund is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency. Although the Fund seeks to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in
the Fund.
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Bar Chart and Performance Table
The bar chart and table below shows the annual returns and its long-term
performance by calendar year for Class O of the Fund. The charts shows how
the performance has varied from year to year. The tables compare Class O
returns over time to the Lipper U.S. Government Money Market Funds Index.
The index is a composite index of the annual return of mutual funds that
have similar investment goals. The Fund's past performance does not
necessarily indicate how it will perform in the future.
The return for the Fund's other Classes of shares offered by this prospectus
will differ from the Class O returns shown in the bar chart, depending upon
the expenses of that Class. The bar chart does not reflect any sales charge
that you may be required to pay upon redemption of the Fund's shares, such
as for Class B or C. Any sales charge will reduce your return.
Bar Chart - Class O
1989 8.56% 1994 3.65%
1990 7.61% 1995 5.22%
1991 5.65% 1996 4.79%
1992 3.39% 1997 5.00%
1993 2.70% 1998 4.93%
Best Quarter (of periods shown) Q2 '89 2.22%
Worst Quarter (of periods shown) Q2 '93 0.66%
Average annual total returns for the periods ended December 31, 1998
(Class B and C were not available during the entire year, so no return is
shown.)
1 year 5 years 10 years
Calvert First Government Class O 4.93% 4.72% 5.14%
Calvert First Government Class B N/A N/A N/A
Calvert First Government Class C N/A N/A N/A
Lipper U.S. Government Money
Market Funds Index 4.95% 4.79% 5.19%
For current yield information, call 800-368-2745.
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Fees and expenses
These tables describes the fees and expenses that you may pay if you buy and
hold shares of a Class. Shareholder fees are paid directly from your
account; annual Fund operating expenses are deducted from Fund assets.
CLASS O
Maximum sales charge (load) None
imposed on purchases
(as a percentage of offering price)
Maximum deferred sales charge (load) None
(as a percentage of purchase or redemption
proceeds, whichever is lower)
Maximum Account Fee 1
Annual fund operating expenses
Management fees 0.50%
Distribution and service (12b-1) fees None
Other expenses 0.332
Total annual fund operating expenses 0.83
CLASS B
Maximum sales charge (load) None
imposed on purchases
(as a percentage of offering price)
Maximum deferred sales charge (load) 5%3
(as a percentage of purchase or
redemption proceeds, whichever is lower)
Maximum Account Fee N/A
Annual fund operating expenses
Management fees 0.50%
Distribution and service (12b-1) fees 1.00%
Other expenses 0.54%
Total annual fund operating expenses 2.04%
Fee waiver and/or expense reimbursement 0.02%4
Net expenses 2.02%
CLASS C
Maximum sales charge (load) None
imposed on purchases
(as a percentage of offering price)
Maximum deferred sales charge (load) 1%5
(as a percentage of purchase or
redemption proceeds, whichever is lower)
Maximum Account Fee N/A
Annual fund operating expenses
Management fees 0.50%
Distribution and service (12b-1) fees 1.00%
Other expenses 0.54%
Total annual fund operating expenses 2.04%
Fee waiver and/or expense reimbursement 0.02%4
Net expenses 2.02%
1For each account with a balance of less than $1,000, the Fund charges a
monthly account maintenance fee of $3.00.
2Expenses have been restated to reflect expenses expected to be incurred in
1999.
3A contingent deferred sales charge is imposed on the proceeds of Class B
shares according to the CDSC schedule of the Fund in which the Class B
shares were originally purchased. That charge is imposed as a percentage of
net asset value at the time of purchase or redemption, whichever is less.
See "Calculation of Contingent Deferred Sales Charges."
4CAMCO has agreed to waive fees and or reimburse expenses (net of any
expense offset arrangements) for the Fund's Class B and C shares through
year 8. The contractual expense cap is shown as "Net Expenses"; this is the
maximum amount that may be charged to the Fund for this period.
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5A contingent deferred sales charge is imposed on the proceeds of Class C
shares redeemed within one year of the purchase of the Class C shares in the
original Fund. That charge is imposed as a percentage of net asset value at
the time of purchase or redemption, whichever is less. See "Calculation of
Contingent Deferred Sales Charges."
Annual Fund Operating Expenses
Expenses are based on expenses for the Fund's most recent fiscal year.
Management fees include the administrative fee paid by the Fund to Calvert
Administrative Services Company, an affiliate of the Advisor, Calvert Asset
Management Company, Inc. ("CAMCO").
Rule 12b-1 fees include an asset-based sales charge. Thus, long-term
shareholders in a Class with such fees may pay more in total sales charges
than the economic equivalent of the maximum front-end sales charge permitted
by rules of the National Association of Securities Dealers, Inc. (the
"NASD").
Example
This example is intended to help you compare the cost of investing in a Fund
with the cost of investing in other mutual funds. The example assumes that:
You invest $10,000 in the Fund for the time periods indicated;
Your investment has a 5% return each year; and
The Fund's operating expenses remain the same.
Although your actual costs may be higher or lower, under these assumptions
your costs would be:
Number of Years Investment is Held
Class 1 year 3 years 5 years 10 years
O $85 $265 $460 $1,025
B w/redemption $705 $1,635 $2,465 $3,987
B w/o redemption $205 $1,235 $2,265 $3,987
C w/ redemption $305 $1,235 $2,265 $4,839
C w/o redemption $205 $1,235 $2,265 $4,839
About Calvert Group
Calvert Asset Management Company, Inc. (4550 Montgomery Avenue, Suite 1000N,
Bethesda, MD 20814) ("CAMCO") is the Funds' investment advisor and provides
day-to-day investment management services to the Funds. It has been managing
mutual funds since 1976. CAMCO is the investment advisor for over 25 mutual
funds, including the first and largest family of socially screened funds. As
of December 31, 1998, CAMCO had $6 billion in assets under management.
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Advisory Fees
The aggregate annual advisory fee paid to CAMCO by the Fund for the most
recent fiscal year as a percentage of that Fund's average daily net assets
was 0.25%.
A Word About the Year 2000 (Y2K) and Our Computer Systems
Like other mutual funds, CAMCO and its service providers use computer
systems for all aspects of our business -- processing shareholder and fund
transactions, fund accounting, executing trades, and pricing securities just
to name a few. Many current software programs cannot distinguish between the
year 2000 and the year 1900. This can cause problems with retirement plan
distributions, dividend payment software, transaction software, and numerous
other areas that could impact the Funds. Calvert Group has been reviewing
all of its computer systems for Y2K compliance. Although, at this time,
there can be no assurance that there will be no negative impact on the
Funds, the Advisor, the underwriter, transfer agent and custodian have
advised the Funds that they have been actively working on any necessary
changes to their computer systems to prepare for Y2K and expect that their
systems, and those of their outside service providers, will be adapted in
time for that event. For more information, please visit our website at
www.calvertgroup.com
HOW TO BUY SHARES
Getting Started - Before You Open an Account
You have a few decisions to make before you open an account in a mutual fund.
First, decide which fund or funds best suits your needs and your goals.
Second, decide what kind of account you want to open. Calvert offers
individual, joint, trust, Uniform Gift/Transfer to Minor Accounts, and
several other types of accounts. Minimum investments are lower for the
retirement plans.
Then decide which class of shares is best for you.
You should make this decision carefully, based on:
the amount you wish to invest;
the length of time you plan to keep the investment; and
the Class expenses.
Choosing a Share Class
The Fund offers five classes of shares, though only Class O, B, and C are
offered
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by this prospectus. Investors may purchase Class O directly. Class B and C
may be purchased only by exchange from the same Class of another Calvert
Fund.
Class O
Class O shares are sold with no front-end sales charge at the time of
purchase and no back-end load when they are redeemed. CDI does not receive
any compensation from the Fund with respect to Class O shares, although from
its own resources, CDI may pay dealers service fees of up to 0.20% of the
Class O average daily net assets maintained by such dealers.
Class B
Class B shares may be purchased only by exchange from Class B shares of
another Calvert Group Fund. Class B shares are sold without a sales charge
at the time of purchase, but are subject to a deferred sales charge upon
redemption, according to the schedule of the original Fund. If imposed, the
deferred sales charge is deducted from the redemption proceeds otherwise
payable to you. The deferred sales charge is retained by CDI. See
"Calculation of Contingent Deferred Sales Charges and Waiver of Sales
Charges" below.
Class B shares will automatically convert to Class O shares, according to
the conversion schedule of the Class B shares of the original Fund. Class O
shares are subject to a lower Distribution Plan charge. The Class B shares
so converted will no longer be subject to the higher expenses borne by Class
B shares. Under current law, it is the Advisor's opinion that such a
conversion will not constitute a taxable event under federal income tax law.
In the event that this ceases to be the case, the Board of Trustees will
consider what action, if any, is appropriate and in the best interests of
the Class B shareholders.
Class C
Class C shares are offered at net asset value, without a front-end sales
charge. With certain exceptions, the Fund imposes a deferred sales charge of
1.00% on shares redeemed during the first year after purchase of the Class C
shares in the original Fund. If imposed, the deferred sales charge is
deducted from the redemption proceeds otherwise payable to you. The deferred
sales charge is retained by CDI. See "Calculation of Contingent Deferred
Sales Charges and Waiver of Sales Charges" below.
Calculation of Contingent Deferred Sales Charge and Waiver of Sales Charges
The CDSC will not be charged on shares you received as dividends or from
capital gains distributions or on any capital appreciation (gain in the
value) of shares that are sold.
Shares that are not subject to the CDSC will be redeemed first, followed by
shares you have held the longest. The CDSC is calculated by determining the
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share value at both the time of purchase and redemption and then multiplying
whichever value is less by the percentage that applies as shown above. If
you choose to sell only part of your shares, the capital appreciation for
those shares only is included in the calculation, rather than the capital
appreciation for the entire account.
The CDSC on Class B Shares will be waived in the following circumstances:
Redemption upon the death or disability of the shareholder, plan
participant, or beneficiary.1
Minimum required distributions from retirement plan accounts for
shareholders 70 1/2 and older.2
The return of an excess contribution or deferral amounts, pursuant to
sections 408(d)(4) or (5), 401(k)(8), 402(g)(2), or 401(m)(6) of the
Internal Revenue Code.
Involuntary redemptions of accounts under procedures set forth by the Fund's
Board of Trustees/Directors.
A single annual withdrawal under a systematic withdrawal plan of up to 10%
of the shareholder's account balance.3
1 "Disability" means a total disability as evidenced by a determination by
the federal Social Security Administration.
2 The maximum amount subject to this waiver is based only upon the
shareholder's Calvert Group retirement accounts.
3 This systematic withdrawal plan requires a minimum account balance of
$50,000 to be established.
Distribution and Service Fees
Class B and C have adopted a plan under Rule 12b-1 of the Investment Company
Act of 1940 that allows the Fund to pay annual distribution fees of 0.75%
for the sale and distribution of its shares. The distribution plan also pays
service fees of 0.25% to persons (such as your financial professional) for
services provided to shareholders. Because these distribution and service
fees are paid out of Class assets on an ongoing basis, over time, these fees
will increase the cost of your investment and may cost you more than paying
other types of sales charges. These distribution and service fees (total
1.00%) are shown in the Fee tables above.
<PAGE>
Next Step - Account Application
Complete and sign an application for each new account. When multiple classes
of shares are offered, please specify which class you wish to purchase. For
more information, contact your broker or our shareholder services department
at 800-368-2748.
Minimum To Open an Account Minimum additional
$2,000 investments -$250
Please make your check payable
to the Fund and mail it to:
New Accounts Subsequent Investments
(include application) (include investment slip)
Calvert Group Calvert Group
P.O. Box 419544 P.O. Box 419739
Kansas, City MO Kansas City, MO
64141-6544 64141-6739
Certified, or c/o NFDS,
Overnight Mail 330 West 9th St.,
Kansas City, MO 64105-1807
At the Calvert Office Visit the Calvert Office to make
investments by check.
Important - How Shares are Priced
The price of shares is based on the Fund's net asset value ("NAV"). NAV is
determined according to the "amortized cost" method. It is computed per
class by adding the value of a Fund's holdings plus other assets,
subtracting liabilities, and then dividing the result by the number of
shares outstanding.
The NAV is calculated as of the close of each business day, which coincides
with the closing of the regular session of the New York Stock Exchange
("NYSE") (normally 4 p.m. ET). The Fund is open for business each day the
NYSE is open. Please note that there are some federal holidays, such as
Columbus Day and Veterans Day, when the NYSE is open and each Fund is open,
but no purchases may be made because the post offices and banks are closed.
<PAGE>
When Your Account Will Be Credited
Before you buy shares, please read the following information to make sure
your investment is credited properly and in a timely manner.
o Your purchase will be processed at the NAV next calculated after
your order is received.
o All of your purchases must be made in US dollars.
o No cash will be accepted.
o No credit card or credit loan checks will be accepted.
o The Fund reserves the right to suspend the offering of shares for a
period of time or to reject any specific purchase order.
o As a convenience, check purchases received at Calvert's office in
Bethesda, Maryland will be sent by overnight delivery to the Transfer Agent
and will be credited the next business day upon receipt.
o Any check purchase received without an investment slip may cause
delayed crediting.
o If your check does not clear your bank, your purchase will be
canceled and you will be charged a $10 fee plus any costs incurred.
o All purchases will be confirmed and credited to your account in
full and fractional shares (rounded to the nearest 1/1000th of a share).
Earning Dividends
If the Transfer Agent receives your wire purchase by 5 p.m. ET, your account
will begin earning dividends on the next business day. Exchanges begin
earning dividends the next business day after the exchange request is
received by mail or telephone. Purchases received by check will begin
earning dividends the next business day after they are credited to the
account.
OTHER CALVERT GROUP FEATURES
CALVERT INFORMATION NETWORK
For 24 hour performance and account information call 800-368-2745 or visit
http://www.calvertgroup.com
You can obtain current performance and pricing information, verify account
balances, and authorize certain transactions with the convenience of one
phone call, 24 hours a day.
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ACCOUNT SERVICES
By signing up for services when you open your account, you avoid having to
obtain a signature guarantee. If you wish to add services at a later date, a
signature guarantee to verify your signature may be obtained from any bank,
trust company and savings and loan association, credit union, broker-dealer
firm or member of a domestic stock exchange. A notary public cannot provide
a signature guarantee.
CALVERT MONEY CONTROLLER
Calvert Money Controller allows you to purchase or sell shares by electronic
funds transfer without the time delay of mailing a check or the added
expense of a wire. Use this service to transfer up to $300,000
electronically. Allow one or two business days after you place your request
for the transfer to take place. Money transferred to purchase new shares
will be subject to a hold of up to 10 business days before redemption
requests will be honored. Transaction requests must be received by 4 p.m.
ET. You may request this service on your initial account application.
Calvert Money Controller transactions returned for insufficient funds will
incur a $25 charge.
TELEPHONE TRANSACTIONS
You may purchase, redeem, or exchange shares, wire funds and use Calvert
Money Controller by telephone if you have pre-authorized service
instructions. You receive telephone privileges automatically when you open
your account unless you elect otherwise. For our mutual protection, the
Fund, the shareholder servicing agent and their affiliates use precautions
such as verifying shareholder identity and recording telephone calls to
confirm instructions given by phone. A confirmation statement is sent for
most transactions; please review this statement and verify the accuracy of
your transaction immediately.
EXCHANGES
Calvert Group offers a wide variety of investment options that includes
common stock funds, tax-exempt and corporate bond funds, and money market
funds (call your broker or Calvert representative for more information). We
make it easy for you to purchase shares in other Calvert funds if your
investment goals change. The exchange privilege offers flexibility by
allowing you to exchange shares on which you have already paid a sales
charge from one mutual fund to another at no additional charge.
Complete and sign an account application, taking care to register your new
account in the same name and taxpayer identification number as your existing
Calvert account(s). Exchange instructions may then be given by telephone if
telephone redemptions have been authorized and the shares are not in
certificate form.
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Before you make an exchange, please note the following:
Each exchange represents the sale of shares of one Fund and the purchase of
shares of another. Therefore, you could realize a taxable gain or loss.
You may exchange shares acquired by reinvestment of dividends or
distributions into another Calvert Fund at no additional charge.
Shares may only be exchanged for shares of the same class of another Calvert
Fund.
No CDSC is imposed on exchanges of shares subject to a CDSC at the time of
the exchange. The applicable CDSC is imposed at the time the shares acquired
by the exchange are redeemed.
Shareholders (and those managing multiple accounts) who make two purchases
and two exchange redemptions of shares of the same Fund during any six-month
period will be given written notice and may be prohibited from placing
additional investments. This policy does not prohibit a shareholder from
redeeming shares of any Fund, and does not apply to trades solely between
money market funds.
The Fund reserves the right to terminate or modify the exchange privilege
with 60 days' written notice.
COMBINED GENERAL MAILINGS (Householding)
Multiple accounts with the same social security number will receive one
mailing per household of information such as prospectuses and semi-annual
and annual reports. You may request further grouping of accounts to receive
fewer mailings. Separate statements will be generated for each separate
account and will be mailed in one envelope for each combination above.
Special Services and Charges
The Fund pays for shareholder services but not for special services that are
required by a few shareholders, such as a request for a historical
transcript of an account or a stop payment on a draft. You may be required
to pay a fee for these special services; for example, the fee for stop
payments is $25.
If you are purchasing shares through a program of services offered by a
broker/dealer or financial institution, you should read the program
materials together with this Prospectus. Certain features may be modified in
these programs. Investors may be charged a fee if they effect transactions
in Fund shares through a broker or agent.
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MINIMUM ACCOUNT BALANCE
Please maintain a balance in each of your accounts of at least $1,000 per
class. If the balance in your account falls below the minimum during a
month, a $3.00 monthly fee may be charged to your account.
DIVIDENDS AND TAXES
The Fund accrues dividends daily and pays them monthly from its net
investment income. Net investment income consists of interest income, net
short-term capital gains, if any, and dividends declared and paid on
investments, less expenses. Distributions of net short-term capital gains
(treated as dividends for tax purposes) and net long-term capital gains, if
any, are normally paid once a year; however, the Fund does not anticipate
making any such distributions unless available capital loss carryovers have
been used or have expired. Dividend and distribution payments will vary
between classes; dividend payments are anticipated to be generally higher
for Class O shares.
Dividend payment options
Dividends and any distributions are automatically reinvested in the same
Fund at NAV (without sales charge), unless you elect to have amounts of $10
or more paid in cash (by check or by Calvert Money Controller). Dividends
and distributions from any Calvert Group Fund may be automatically invested
in an identically registered account in any other Calvert Group Fund at NAV.
If reinvested in the same account, new shares will be purchased at NAV on
the reinvestment date, which is generally 1 to 3 days prior to the payment
date. You must notify the Funds in writing to change your payment options.
If you elect to have dividends and/or distributions paid in cash, and the US
Postal Service returns the check as undeliverable, it, as well as future
dividends and distributions, will be reinvested in additional shares. No
dividends will accrue on amounts represented by uncashed distribution or
redemption checks.
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.
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Taxpayer Identification Number
If we do not have your correct Social Security or Taxpayer Identification
Number ("TIN") and a signed certified application or Form W-9, Federal law
requires us to withhold 31% of your reportable dividends, and possibly 31%
of certain redemptions. In addition, you may be subject to a fine by the
Internal Revenue Service. You will also be prohibited from opening another
account by exchange. If this TIN information is not received within 60 days
after your account is established, your account may be closed. Calvert Group
reserves the right to reject any new account or any purchase order for
failure to supply a certified TIN.
HOW TO SELL SHARES
You may redeem all or a portion of your shares on any day the Fund is open
for business, provided the amount requested is not on hold. When you
purchase by check or with Calvert Money Controller (electronic funds
transfer), the purchase will be on hold for up to 10 business days from the
date of receipt. During the hold period, redemptions proceeds will not be
sent until the Transfer Agent is reasonably satisfied that the purchase
payment has been collected. Drafts written during the hold period will be
returned for uncollected funds.
Your shares will be redeemed at the next NAV calculated after your
redemption request is received and accepted (less any applicable CDSC). The
proceeds will normally be sent to you on the next business day, but if
making immediate payment could adversely affect the Fund, it may take up to
seven (7) days to make payment. Calvert Money Controller redemptions
generally will be credited to your bank account by the second business day
after your phone call. When the NYSE is closed (or when trading is
restricted) for any reason other than its customary weekend or holiday
closings, or under any emergency circumstances as determined by the
Securities and Exchange Commission, redemptions may be suspended or payment
dates postponed. Please note that there are some federal holidays, however,
such as Columbus Day and Veterans' Day, when the NYSE is open and the Fund
is open but redemptions cannot be made because the post offices and banks
are closed.
The Fund has the right to redeem shares in assets other than cash for
redemption amounts exceeding, in any 90-day period, $250,000 or 1% of the
net asset value of the Fund, whichever is less.
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Follow these suggestions to ensure timely processing of your redemption
request:
By Telephone
You may redeem shares from your account by telephone and have your money
mailed to your address of record or electronically transferred or wired to a
bank you have previously authorized. A charge of $5 may be imposed on wire
transfers of less than $1,000.
Written Requests
Calvert Group, P.O. Box 419544, Kansas City, MO 64141-6544
Your letter should include your account number and fund and the number of
shares or the dollar amount you are redeeming. Please provide a daytime
telephone number, if possible, for us to call if we have questions. If the
money is being sent to a new bank, person, or address other than the address
of record, your letter must be signature guaranteed.
Draftwriting
You may redeem shares in your account by writing a draft for at least $250.
If you complete and return the signature card for Draftwriting, the Fund
will mail bank drafts to you, printed with your name and address. Drafts may
not be ordered until your initial purchase has cleared. Generally, there is
no charge to you for this service, but the Fund will charge a service fee
for drafts returned for insufficient funds. Fund will charge $25 for any
stop payment on drafts. As a service to shareholders, shares may be
automatically transferred between your Calvert money market accounts to
cover drafts you have written. The signature of only one authorized signer
is required to honor a draft.
Systematic Check Redemptions
If you maintain an account with a balance of $10,000 or more, you may have
up to two (2) redemption checks for a fixed amount sent to you on the 15th
of the month, simply by sending a letter with all information, including
your account number, and the dollar amount ($100 minimum). If you would like
a regular check mailed to another person or place, your letter must be
signature guaranteed. Unless they otherwise qualify for a waiver, Class B or
Class C shares redeemed by Systematic Check Redemption will be subject to
the Contingent Deferred Sales Charge.
Corporations and Associations
Your letter of instruction and corporate resolution should be signed by
person(s) authorized to act on the account, accompanied by signature
guarantee(s).
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Trusts
Your letter of instruction should be signed by the Trustee(s) (as
Trustee(s)), with a signature guarantee. (If the Trustee's name is not
registered on your account, please provide a copy of the trust document,
certified within the last 60 days.)
Through your Dealer
Your dealer must receive your request before the close of regular trading on
the NYSE to receive that day's NAV. Your dealer will be responsible for
furnishing all necessary documentation to Calvert Group and may charge you
for services provided.
FINANCIAL HIGHLIGHTS
The financial highlights table is intended to help you understand the Fund's
financial performance for the past 5 years. Certain information reflects
financial results for a single share by Class. The total returns in the
table represent the rate that an investor would have earned (or lost) on an
investment in the Fund (assuming reinvestment of all dividends and
distributions), and does not reflect any applicable front- or back-end sales
charge. This information has been audited by PricewaterhouseCoopers LLP,
whose report, along with the Fund's financial statements, are included in
the Fund's annual report, available upon request.
<PAGE>
Financial Highlights
Years Ended
December 31, December 31, December 31,
Class O Shares 1998 1997 1996
Net asset value, beginning $1.00 $1.00 $1.00
Income from investment operations
Net investment income .048 .049 .047
Distributions from
Net investment income (.048) (.049) (.047)
Net asset value, ending $1.00 $1.00 $1.00
Total return 4.93% 5.00% 4.79%
Ratios to average net assets:
Net investment income 4.82% 4.88% 4.69%
Total expenses + .81% .82% .86%
Net expenses .79% .80% .85%
Net assets, ending
(in thousands) $246,019 $232,025 $239,420
Number of shares outstanding,
ending (in thousands) 246,535 232,514 239,910
Years Ended
December 31, December 31,
Class O Shares 1995 1994
Net asset value, beginning $1.00 $1.00
Income from investment operations
Net investment income .051 .036
Distributions from
Net investment income (.051) (.036)
Net asset value, ending $1.00 $1.00
Total return 5.22% 3.66%
Ratios to average net assets:
Net investment income 5.04% 3.56%
Total expenses + .89% --
Net expenses .88% .81%
Net assets, ending
(in thousands) $241,150 $230,183
Number of shares outstanding,
ending (in thousands) 241,685 230,618
Financial Highlights
Periods Ended
Class B Shares Class C Shares
December 31, December 31,
Classes B&C Shares 1998^ 1998^^
Net asset value, beginning $1.00 $1.00
Income from investment operations
Net investment income .027 .020
Distributions from
Net investment income (.027) (.020)
Net asset value, ending $1.00 $1.00
Total return 2.72% 2.06%
Ratios to average net assets:
Net investment income 3.28%(a) 3.35%(a)
Total expenses + 2.02%(a) 2.02%(a)
Net expenses 2.00%(a) 2.00%(a)
Expenses reimbursed 34.91%(a) 6.44%(a)
Net assets, ending (in thousands) $74 $339
Number of shares outstanding,
ending (in thousands) 74 339
(a) Annualized
^ From April 1, 1998 inception
^^ From June 1, 1998 inception
+ 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. Total expenses are presented net of expense waivers
and reimbursements.
<PAGE>
To Open an Account:
800-368-2748
Performance and Prices:
Calvert Information Network
24 hours, 7 days a week
800-368-2745
Service for Existing Accounts:
Shareholders 800-368-2745
Brokers 800-368-2746
TDD for Hearing-Impaired:
800-541-1524
Branch Office:
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
Registered, Certified or
Overnight Mail:
Calvert Group
c/o NFDS
330 West 9th Street
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>
For investors who want more information about the Fund, the following
documents are available free upon request:
Annual/Semi-Annual Reports: Additional information about the Fund's
investments is available in the Fund's Annual and Semi-Annual reports to
shareholders. In the Fund's annual report, you will find a discussion of the
market conditions and investment strategies that significantly affected the
Fund's performance during its last fiscal year.
Statement of Additional Information (SAI): The SAI for the Fund provides
more detailed information about the Fund and is incorporated into this
prospectus by reference.
You can get free copies of reports and the SAI, request other information
and discuss your questions about the Fund by contacting your broker, or the
Fund at:
Calvert Group
4550 Montgomery Ave, Suite 1000N
Bethesda, Md. 20814
Telephone: 1-800-368-2745
Calvert Group Web-Site
Address: http://www.calvertgroup.com
You can review the Fund's reports and SAI at the public Reference Room of
the Securities and Exchange Commission. You can get text-only copies:
For a fee, by writing to or calling the Public Reference Room of the
Commission, Washington, D.C. 20549-6009, Telephone: 1-800-SEC-0330.
Free from the Commission's Internet website at
http://www.sec.gov.
Investment Company Act File No.: 811-2633 First Variable Rate Fund
<PAGE>
PROSPECTUS
April 30, 1999
CALVERT FIRST GOVERNMENT MONEY MARKET FUND
INSTITUTIONAL CLASS
Table of Contents Page
About the Fund
Investment goal _
Investment strategies and risks _
Performance chart _
Fees and expenses _
About the Advisor
Management _
Year 2000 _
Shareholder Guide:
How to Buy Shares _
Dividends and Taxes _
How to Sell Shares _
Financial Highlights _
These securities have not been approved or disapproved by the Securities and
Exchange Commission ("SEC") or any state securities commission nor has the
SEC or any state securities commission passed upon the accuracy or adequacy
of this prospectus. Any representation to the contrary is a criminal offense.
<PAGE>
Fundamental Goal - Investment Objective
Calvert First Government Money Market 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.
The Fund is offered in this prospectus to institutional investors.
Principal Investment Strategies
Fund assets are invested in short-term money market instruments, such as:
obligations issued by the U.S. Treasury, such as U.S. Treasury bills,
notes and bonds, supported by the full faith and credit of the U.S.
Government;
Securities issued by the U.S. Government, its agencies and
instrumentalities;
repurchase agreements; and
variable-rate demand notes.
Principal Risks
The yield of the Fund will change daily, depending on market interest rates,
and tends to follow generally the same direction as the rates.
Dividends paid by the Fund will fluctuate as interest rates and net
investment income fluctuate.
Investments in obligations not guaranteed by the full faith and credit of
the U.S. Government are subject to the ability of the issuer to make payment
at maturity.
The yield of the Fund will change in response to market interest rates. In
general, as market rates go up so will the Fund's yield, and vice versa.
Although the Fund tries to keep the value of its shares constant at $1.00
per share, extreme changes in market rates, and or sudden credit
deterioration of a holding could cause the value to decrease. The Fund
limits the amount invested in any one issuer to try to lessen exposure.
An investment in the Fund is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency. Although the Fund seeks to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in
the Fund.
<PAGE>
Bar Chart and Performance Table
The bar chart and table below shows the annual returns and its long-term
performance by calendar year for Class O of the Fund. The charts shows how
the performance has varied from year to year. The tables compare Class O
returns over time to the Lipper U.S. Government Money Market Funds Index.
The index is a composite index of the annual return of mutual funds that
have similar investment goals. The Fund's past performance does not
necessarily indicate how it will perform in the future.
Please note that performance for Class O is shown because the inception date
of the Institutional Class was September 15, 1998. The return for the
Institutional Class for the period from inception, September 15, 1998 to
December 31, 1998, was 1.49%.
Bar Chart - Class O
1989 8.56% 1994 3.65%
1990 7.61% 1995 5.22%
1991 5.65% 1996 4.79%
1992 3.39% 1997 5.00%
1993 2.70% 1998 4.93%
Best Quarter (of periods shown) Q2 '89 2.22%
Worst Quarter (of periods shown) Q2 '93 0.66%
Average annual total returns for the periods ended December 31, 1998
1 year 5 years 10 years
Calvert First Government Class O 4.93% 4.72% 5.14%
Lipper U.S. Government Money
Market Funds Index 4.95% 4.79% 5.19%
For current yield information, call 800-368-2745.
Fees and Expenses of the Class
These tables describe the fees and expenses you may pay if you buy and hold
shares of the Class.
A. Shareholder Fees
(fees paid directly from your investment)
Institutional
Class
Maximum Sales Load on Purchases None
Maximum Deferred Sales Load None
Maximum Sales Load on Reinvested Dividends None
Redemption Fees None
Exchange Fee None
B. Annual Fund Operating Expenses
(expenses that are deducted from Fund assets)
Institutional
Class
Management Fees 0.30%
Distribution and service (12b-1) fees None
Other Expenses 0.15%
Total Annual Fund Operating Expenses1 0.45%
1Expenses have been restated to reflect expenses expected to be incurred in
1999.
<PAGE>
Annual Fund Operating Expenses
The Institutional Class expenses are based on the most recent fiscal period,
from inception, September 15, 1998 to December 31, 1998. Management fees
include the administrative fee paid by the Fund to Calvert Administrative
Services Company, an affiliate of the Advisor, Calvert Asset Management
Company, Inc. ("CAMCO").
Example:
This example is intended to help you compare the cost of investing in the
Class with the cost of investing in other mutual funds. The example assumes
that:
You invest $1,000,000 in the Class for the time periods
indicated;
You redeem all shares at the end of the periods;
Your investment has a 5% return each year; and
The Fund's operating expenses remain the same.
Although your actual costs may be higher or lower, under these
assumptions your costs would be:
1 Year 3 Years
Calvert First
Government
Institutional Class $4,602 $14,445
About Calvert Group
Calvert Asset Management Company, Inc. ("CAMCO"), 4550 Montgomery Avenue,
Suite 1000N, Bethesda, MD 20814, is the Fund's investment advisor and
provides day-to-day investment management services to the Fund. It has been
managing mutual funds since 1976. CAMCO is the investment advisor for over
25 mutual funds. As of December 31, 1998, CAMCO had $6 billion in assets
under management.
Advisory Fees
The aggregate annual advisory fee paid to CAMCO by the Fund for the most
recent fiscal year as a percentage of that Fund's average daily net assets
was 0.25%.
A Word About the Year 2000 (Y2K) and Our Computer Systems
Like other mutual funds, Calvert and its service providers use computer
systems for all aspects of our business -- processing shareholder and fund
transactions, fund accounting, executing trades, and pricing securities,
just to name a few. Many current software programs cannot distinguish
between the year 2000 and the year 1900. This can cause problems with
retirement plan distributions, dividend payment software, transaction
software, and numerous other areas that could impact the Funds. Calvert has
been reviewing all of its computer systems for Y2K compliance. Although, at
this time, there can be no assurance that there will be no negative impact
on the Funds, the Advisor, the underwriter, transfer agent and custodian
have advised the Funds that they have been actively working on any necessary
changes to their computer systems to prepare for Y2K and expect that their
systems, and those of their outside service providers, will be adapted in
time for that event. For more information, please visit our website at
www.calvertgroup.com.
<PAGE>
SHAREHOLDER GUIDE
HOW TO BUY SHARES
Opening An Account
Complete and sign an application for each new account. For more information,
please contact the Calvert Institutional Marketing Group at 800-317-2274.
The minimum initial investment and minimum balance required is $1,000,000.
The minimum for subsequent investments is $25,000. Investments may be made
by wire or by exchange from another Calvert Group account:
Wire investments to: State Street Bank and Trust Company
Boston MA
ABA# 011000028
FBO: CFGMMF Institutional Fund 701
Wire Account #9903-765-7
Your name and account number
Important - How Shares are Priced
The price of shares is based on the Fund's net asset value ("NAV"). NAV is
determined according to the "amortized cost" method. It is computed per
class by adding the value of a Fund's holdings plus other assets,
subtracting liabilities, and then dividing the result by the number of
shares outstanding.
The NAV is calculated as of the close of each business day, which coincides
with the closing of the regular session of the New York Stock Exchange
("NYSE") (normally 4 p.m. ET). The Fund is open for business each day the
NYSE is open. Please note that there are some federal holidays, such as
Columbus Day and Veterans Day, when the NYSE is open and each Fund is open,
but no purchases may be because the post offices and banks are closed.
WHEN YOUR ACCOUNT WILL BE CREDITED
Before you buy shares, please read the following information to make sure
your investment is credited properly and in a timely manner.
Your purchase will be processed at the NAV next calculated after your order
is received. A telephone order placed to Calvert Institutional Marketing
Group by 1:00 p.m. Eastern time will receive the dividend on Class shares
declared that day if federal funds are received by the custodian by 5 p.m.
Eastern time. Telephone orders placed after 1:00 p.m. will begin earning
dividends on Class shares the next business day. If no telephone order is
placed, investments begin earning dividends the next business day. Exchanges
begin earning dividends the next business day after the exchange request is
received by mail or telephone.
All of your purchases must be made by wire. No cash or checks will be
accepted. The Fund reserves the right to suspend the offering of shares for
a period of time or to reject any specific purchase order.
EXCHANGES
Each exchange represents the sale of shares of one Fund and the purchase of
shares of another.
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, please note the following:
Call the Calvert Institutional Marketing Group for information and
a prospectus for any of Calvert's other Funds registered in your state. Read
the prospectus of the Fund into which you want to exchange for relevant
information.
Complete and sign an application for an account in that Fund,
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 at Calvert
Group may be exchanged into another Fund at no additional charge. Shares
acquired by reinvestment of dividends or distributions may be exchanged into
another Fund at no additional charge. Except for money market funds, if you
make a purchase at NAV, you may exchange that amount to another fund at no
additional sales charge.
<PAGE>
The Fund reserves the right to terminate or modify the exchange privilege
with 60 days' written notice.
OTHER CALVERT GROUP FEATURES
Calvert Information Network
For 24 hour performance and account information call 800-368-2745 or visit
http://www.calvertgroup.com
You can obtain current performance and pricing information, verify account
balances, and authorize certain transactions with the convenience of one
telephone call, 24 hours a day.
Telephone Transactions
You may purchase, redeem, exchange shares, or wire funds by telephone if you
have pre-authorized service instructions. You receive telephone privileges
automatically when you open your account unless you elect otherwise. For our
mutual protection, the Fund, the shareholder servicing agent and their
affiliates use precautions such as verifying shareholder identity and
recording telephone calls to confirm instructions given by phone. A
confirmation statement is sent for most transactions; please review this
statement and verify the accuracy of your transaction immediately.
Combined General Mailings Join us in our efforts to conserve paper and save
on postage.
If you have multiple accounts with Calvert, you may receive combined
mailings of shareholder information, such as account statements,
confirmations of transactions, prospectuses and semi-annual and annual
reports.
Special Services and Charges
The Fund pays for shareholder services but not for special services that are
required by a few shareholders, such as a request for a historical
transcript of an account, or a stop payment on a draft. You may be required
to pay a fee for these special services.
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 payment options
Dividends and any distributions are automatically reinvested in the same
Fund at NAV (without sales charge), unless you elect to have amounts of $10
or more paid in cash by wire to a predesignated bank account. Dividends and
distributions from any Calvert Group Fund may be automatically invested in
an identically registered account in any other Calvert Group Fund at NAV. If
reinvested in the same account, new shares will be purchased at NAV on the
reinvestment date, which is generally 1 to 3 days prior to the payment date.
You must notify the Fund in writing to change your payment options.
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. A portion of the
Fund's dividends may qualify for the dividends received deduction for
corporations.
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
may require 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.
<PAGE>
HOW TO SELL SHARES
You may redeem all or a portion of your shares on any day the Fund is open
for business. Your shares will be redeemed at the next NAV calculated after
your redemption request is received. You will receive dividends through the
date the request is received and processed.
A telephone order for a redemption must be received by the Calvert
Institutional Marketing Group by noon Eastern time in order for the proceeds
to be sent to you on the same business day. When the NYSE is closed (or when
trading is restricted) for any reason other than its customary weekend or
holiday closings, or under any emergency circumstances as determined by the
Securities and Exchange Commission, redemptions may be suspended or payment
dates postponed. Please note that there are some federal holidays, however,
such as Columbus Day and Veterans' Day, when the NYSE is open and the Fund
is open but redemptions cannot be made because the post offices and banks
are closed.
If making immediate payment could adversely affect the Fund, it may take up
to seven (7) days to make payment. The Fund has the right to redeem shares
in assets other than cash for redemption amounts exceeding, in any 90-day
period, $250,000 or 1% of the net asset value of the Fund, whichever is less.
Follow these suggestions to ensure timely processing of your redemption
request:
By Telephone Institutional Marketing Group 800.317.2274
You may redeem shares from your account by telephone and have your money
electronically transferred or wired to a bank you have previously
authorized. To better enable CAMCO to keep the Fund fully invested, Calvert
requests that you notify the Institutional Marketing Group at least 24 hours
in advance for any redemption over $10 million per day. A charge of $5 may
be imposed on wire transfers of less than $50,000.
Written Requests
Calvert Group, P.O. Box 419544, Kansas City, MO 64141-6544
Your letter should include your account number and fund and the number of
shares or the dollar amount you are redeeming. Please provide a daytime
telephone number, if possible, for us to call if we have questions. If the
money is being sent to a new bank, person, or address other than the address
of record, your letter must be signature guaranteed.
Corporations and Associations
Your letter of instruction and corporate resolution should be signed by
person(s) authorized to act on the account, accompanied by signature
guarantee(s).
<PAGE>
FINANCIAL HIGHLIGHTS
The financial highlights table is intended to help you understand the
Fund's financial performance. Certain information reflects financial results
for a single share. The total returns in the table represent the rate that
an investor would have earned (or lost) on an investment in the Fund,
assuming reinvestment of all dividends and distributions. This information
has been audited by PricewaterhouseCoopers LLP, whose report and the Fund's
financial statements are included in the Fund's annual report, available
upon request.
Period Ended
Class I Shares
December 31,
Class I Shares 1998^
Net asset value, beginning $1.00
Income from investment operations
Net investment income .015
Distributions from
Net investment income (.015)
Net asset value, ending $1.00
Total return 1.49%
Ratios to average net assets:
Net investment income 4.95%(a)
Total expenses + .34%(a)
Net expenses .32%(a)
Expenses reimbursed .09%(a)
Net assets, ending
(in thousands) $20,128
Number of shares outstanding,
ending (in thousands) 20,128
(a) Annualized
^ From September 6, 1998 inception
+ This ratio reflects total expenses before reduction for fees paid
indirectly; such reductions are included in the ratio of net expenses. Total
expenses are presented net of expense waivers and reimbursements.
<PAGE>
Service for Existing Account:
800-368-2746
Calvert Group Web-Site
Address: http://www.calvertgroup.com
Branch Office and
Principal Underwriter
Calvert Distributors, Inc.
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
<PAGE>
For investors who want more information about the Fund, the following
documents are available free upon request:
Annual/Semi-Annual Reports: Additional information about the Fund's
investments is available in the Fund's Annual and Semi-Annual reports to
shareholders. In the Fund's annual report, you will find a discussion of the
market conditions and investment strategies that significantly affected the
Fund's performance during its last fiscal year.
Statement of Additional Information (SAI): The SAI for the Fund provides
more detailed information about the Fund and is incorporated into this
prospectus by reference.
You can get free copies of reports and the SAI, request other information
and discuss your questions about the Fund by contacting your broker, or the
Fund at:
Calvert Group
4550 Montgomery Ave, Suite 1000N
Bethesda, Md. 20814
Telephone: 1-800-368-2745
Calvert Group Web-Site
Address: http://www.calvertgroup.com
You can review the Fund's reports and SAI at the public Reference Room of
the Securities and Exchange Commission. You can get text-only copies:
For a fee, by writing to or calling the Public Reference Room of the
Commission, Washington, D.C. 20549-6009, Telephone: 1-800-SEC-0330.
Free from the Commission's Internet website at
http://www.sec.gov.
Investment Company Act File No.: 811-2633 First Variable Rate Fund
<PAGE>
First Variable Rate Fund for Government Income
Calvert First Government Money Market Fund
4550 Montgomery Avenue, Suite 1000N, Bethesda, Maryland 20814
Statement of Additional Information
April 30, 1999
TABLE OF CONTENTS
Investment Objective and Strategy 1
Investment Restrictions 2
Dividends and Distributions 2
Tax Matters 2
Net Asset Value 3
Calculation of Yield 4
Advertising 4
Purchases and Redemption of Shares 4
Trustees and Officers 5
Investment Advisor 7
Administrative Services 8
Transfer and Shareholder Servicing Agents 8
Portfolio Transactions 8
Independent Accountants and Custodians 9
Method of Distribution 9
General Information 10
Control Persons and Principal Holders of Securities 12
New Account Information
(800) 368-2748
(301) 951-4820
Shareholder Services
(800) 368-2745
Broker Services
(800) 368-2746
(301) 951-4850
TDD for the Hearing- 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 appropriate First Variable Rate Fund Calvert First Government Money
Market Fund (the "Fund") Prospectus, dated April 30, 1999 (one prospectus is
issued for Class O, B, and C, one prospectus for Class T, and one prospectus
for the Institutional Class), which may be obtained free of charge by
writing or calling the Fund at the telephone numbers listed above.
The audited financial statements included in the Fund's Annual Report
to Shareholders dated December 31, 1998 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.
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 investment objective 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
Fundamental Investment Restrictions
The Fund has adopted the following fundamental investment
restrictions. These restrictions cannot be changed without the approval of
the holders of a majority of the outstanding shares of the Fund.
(1) The Fund may not make any investment inconsistent with
its classification as a diversified investment company
under the 1940 Act.
(2) The Fund may not concentrate its investments in the
securities of issuers primarily engaged in any particular
industry (other than securities issued or guaranteed by
the U.S. Government or its agencies or instrumentalities
and repurchase agreements secured thereby), or domestic
bank money market instruments.
(3) The Fund may not issue senior securities or borrow
money, except from banks for temporary or emergency
purposes and then only in an amount up to 33 1/3% of the
value of its total assets or as permitted by law and
except by engaging in reverse repurchase agreements, where
allowed. In order to secure any permitted borrowings and
reverse repurchase agreements under this section, the Fund
may pledge, mortgage or hypothecate its assets.
(4) The Fund may not underwrite the securities of other
issuers, except as allowed by law or to the extent that
the purchase of obligations in accordance with the Fund's
investment objective and policies, either directly from
the issuer, or from an underwriter for an issuer, may be
deemed an underwriting.
(5) The Fund may not invest directly in commodities or
real estate, although it may invest in securities which
are secured by real estate or real estate mortgages and
securities of issuers which invest or deal in commodities,
commodity futures, real estate or real estate mortgages.
(6) The Fund may not make loans, other than through the
purchase of money market instruments and repurchase
agreements or by the purchase of bonds, debentures or
other debt securities, or as permitted by law. The
purchase of all or a portion of an issue of publicly or
privately distributed debt obligations in accordance with
the Fund's investment objective, policies and
restrictions, shall not constitute the making of a loan.
Nonfundamental Investment Restrictions
The Board of Trustees has adopted the following nonfundamental
investment restrictions. A nonfundamental investment restriction can be
changed by the Board at any time without a shareholder vote.
(1) The Fund may not purchase common stocks, preferred stocks,
warrants, or other equity securities.
(2) The Fund does not intend to make any purchases of securities if
borrowing exceeds 5% of total assets.
(3) The Fund may not sell securities short.
(4) The Fund may not write or purchase put or call options.
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. 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. Dividends and distributions may differ among the classes.
Purchasers of Fund shares begin receiving dividends from the date
federal funds are received by the Fund. Non-institutional 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 through the
date such draft is presented to the Fund for payment.
TAX MATTERS
The Fund intends to continue to qualify as regulated investment
companies under Subchapter M of the Internal Revenue Code. If for any reason
it should fail to qualify, it would be taxed as a corporation, rather than
passing through its income and gains to shareholders.
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 redeemed (and, for Class B or C, less any applicable contingent
deferred sales charge, "CDSC"), 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 calculated separately for each class. It is
determined every business day at the close of the New York Stock Exchange
(generally, 4:00 p.m. Eastern time). The Fund does not determine net asset
value on certain national holidays or other days on which the New York Stock
Exchange is closed: New Year's Day, Martin Luther King Day, Presidents' Day,
Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving Day,
and Christmas Day.
The Fund's 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, December 31, 1998
Class O ($246,018,576/246,534,740 shares) $1.00
Class B ($74,210/74,227 shares) $1.00
Class C ($339,292/339,355 shares) $1.00
Class I ($20,127,779/20,128,026 shares) $1.00
CALCULATION OF YIELD
Yield is calculated separately by class 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 31, 1998, the Fund's yield and
effective yield were as follows:
Yield Effective Yield
Class O 4.48% 4.58%
Class B 3.28% 3.33%
Class C 3.15% 3.20%
Class I 4.96% 5.09%
Class T N/A N/A
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. No yield is presented for
Class T because it was not offered as of the fiscal year ending December 31,
1998.
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.
Calvert Group is the nation's leading family of socially
responsible mutual funds, both in terms of socially responsible mutual fund
assets under management, and number of socially responsible mutual fund
portfolios offered (source: Social Investment Forum, December 31, 1998).
Calvert Group was also the first to offer a family of socially responsible
mutual fund portfolios.
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"). Certain Class B and C Shares may be subject to a
contingent deferred sales charge which is subtracted from the redemption
proceeds (See Prospectus, "Calculation of Contingent Deferred Sales Charge").
Class O shareholders wishing to use the draft writing service
should complete the signature card enclosed with the Investment Application.
The draft writing service is not available for Class B, C, I, or T Shares.
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, other than Class T, 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. Class T
shareholders should contact their broker, The Advisors Group, Ltd.
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
no later than 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
The Fund's Board of Trustees/Directors supervises the Fund's
activities and reviews its contracts with companies that provide it with
services.
RICHARD L. BAIRD, JR., Trustee. Mr. Baird is Executive Vice
President 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 Calvert Variable Series, Inc., Calvert New World
Fund, Inc. and Calvert World Values Fund, Inc. DOB: 05/09/48. 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 & Blatz. He was formerly a partner with
Abrams, Blatz, Gran, Hendricks & Reina, P.A. He is also a director of
Calvert Variable Series, Inc. DOB: 10/29/35. Address: 308 East Broad Street,
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. DOB: 07/23/49. Address: 16 Iliahi
Street, Honolulu, Hawaii, 96817.
CHARLES E. DIEHL, Trustee. Mr. Diehl is a self-employed consultant
and is Vice President and Treasurer Emeritus of the George Washington
University. He has retired from University Support Services, Inc. of
Herndon, Virginia. Formerly, he was a Director of Acacia Mutual Life
Insurance Company, and is currently a Director of Servus Financial
Corporation. DOB: 10/13/22. Address: 1658 Quail Hollow Court, McLean,
Virginia 22101.
DOUGLAS E. FELDMAN, M.D., Trustee. Dr. Feldman is managing partner
of Feldman Otolaryngology, Head and Neck Surgery in Washington, D.C. A
graduate of Harvard Medical School, he is Associate Professor of
Otolaryngology, Head and Neck Surgery at Georgetown University and George
Washington University Medical School, and past Chairman of the Department of
Otolaryngology, Head and Neck Surgery at the Washington Hospital Center. He
is included in The Best Doctors in America. DOB: 05/23/48. Address: 7536
Pepperell Drive, Bethesda, Maryland 20817.
PETER W. GAVIAN, CFA, Trustee. Mr. Gavian is President of Corporate
Finance of Washington, Inc. Formerly, he was a principal of Gavian De Vaux
Associates, an investment banking firm. He is also a Chartered Financial
Analyst and an accredited senior business appraiser. DOB: 12/08/32. 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, a director of Ariel Funds, 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 Calvert Variable Series, Inc. and Calvert
New World Fund, Inc.
Mr. Guffey has been advised that the Securities and Exchange
Commission ("SEC") has entered an order against him relating to his former
service as a director of Community Bankers Mutual Fund, Inc. This fund is
not connected with any Calvert Fund or the Calvert Group and ceased
operations in September, 1994. Mr. Guffey consented to the entry of the
order without admitting or denying the findings in the order. The order
contains findings (1) that the Community Bankers Mutual Fund's prospectus
and statement of additional information were materially false and misleading
because they misstated or failed to state material facts concerning the
pricing of fund shares and the percentage of illiquid securities in the
fund's portfolio and that Mr. Guffey, as a member of the fund's board,
should have known of these misstatements and therefore violated the
Securities Act of 1933; (2) that the price of the fund's shares sold to the
public was not based on the current net asset value of the shares, in
violation of the Investment Company Act of 1940 (the "Investment Company
Act"); and (3) that the board of the fund, including Mr. Guffey, violated
the Investment Company Act by directing the filing of a materially false
registration statement. The order directed Mr. Guffey to cease and desist
from committing or causing future violations and to pay a civil penalty of
$5,000. The SEC placed no restrictions on Mr. Guffey's continuing to serve
as a Trustee or Director of mutual funds. DOB: 05/15/48. Address: 388 Calli
Calina, Santa Fe, New Mexico 87501.
*BARBARA J. KRUMSIEK, President and Trustee. Ms. Krumsiek 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. She 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. Ms. Krumsiek is
the President of each of the investment companies, except for Calvert Social
Investment Fund, of which she is the Senior Vice President. Prior to joining
Calvert Group, Ms. Krumsiek served as a Managing Director of Alliance Fund
Distributors, Inc. DOB: 08/09/52.
M. CHARITO KRUVANT, Trustee. Ms. Kruvant is President and CEO of
Creative Associates International, Inc., a firm that specializes in human
resources development, information management, public affairs and private
enterprise development. She is also a Director of Calvert Variable Series,
Inc. and Acacia Federal Savings Bank. DOB: 12/08/45. Address: 5301 Wisconsin
Avenue, N.W., Washington, D.C. 20015.
ARTHUR J. PUGH, Trustee. Mr. Pugh is a Director of Calvert Variable
Series, Inc., and serves as a director of Acacia Federal Savings Bank. DOB:
09/24/37. Address: 4823 Prestwick Drive, Fairfax, Virginia 22030.
*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. He is the Senior Vice President of First Variable
Rate Fund, Calvert Tax-Free Reserves, Calvert Municipal Fund, Inc., Calvert
Cash Reserves, and The Calvert Fund. DOB: 10/07/37. Address: Box 93,
Chelsea, Vermont 05038.
*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
Calvert Variable Series, Inc. and Calvert New World Fund. Mr. Silby is
Executive Chairman of Group Serve, Inc., an internet company focused on
community building collaborative tools, and an officer, director and
shareholder of Silby, Guffey & Company, Inc., which serves as general
partner of Calvert Social Venture Partners ("CSVP"). CSVP is a venture
capital firm investing in socially responsible small companies. He is also a
Director of Acacia Mutual Life Insurance Company. DOB: 07/20/48. Address:
1715 18th Street, N.W., Washington, D.C. 20009.
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. DOB: 1/13/50.
RONALD M. WOLFSHEIMER, CPA, Treasurer. Mr. Wolfsheimer is Senior
Vice President and Chief Financial Officer 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.
DOB: 07/24/47.
WILLIAM M. TARTIKOFF, Esq., Vice President and 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. DOB: 08/12/47.
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. DOB: 09/09/50.
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.
DOB: 01/29/59.
KATHERINE STONER, Esq., Assistant Secretary. Ms. Stoner is
Associate General Counsel of Calvert Group 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. DOB:
10/21/56.
IVY WAFFORD DUKE, Esq., Assistant Secretary. Ms. Duke is Associate
General Counsel of Calvert Group 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 and Secretary and
provides counsel to the Calvert Social Investment Foundation. Prior to
working at Calvert Group, Ms. Duke was an Associate in the Investment
Management Group of the Business and Finance Department at Drinker Biddle &
Reath. DOB: 09/07/68.
VICTOR FRYE, Esq., Assistant Secretary and Compliance Officer. Mr.
Frye is Counsel and Compliance Officer of Calvert Group and an officer of
each of its subsidiaries and Calvert-Sloan Advisers, L.L.C. He is also an
officer of each of the other investment companies in the Calvert Group of
Funds. Prior to working at Calvert Group, Mr. Frye was Counsel and Manager
of the Compliance Department at The Advisors Group. DOB: 10/15/58.
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.
Trustees marked with an *, above, are "interested persons" of the Fund,
under the Investment Company Act of 1940.
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 and Silby and Ms. Krumsiek are among the Trustees, Calvert
Variable Series, Inc., of which only Messrs. Blatz, Diehl and Pugh and Mmes.
Krumsiek and Kruvant are among the Directors, Calvert World Values Fund,
Inc., of which only Messrs. Guffey and Silby and Ms. Krumsiek are among the
Directors, and Calvert New World Fund, Inc., of which only and Ms. Krumsiek
and Mr. Martini are among the Directors.
The Board's Audit Committee is composed of Messrs. Baird, Blatz,
Feldman, Guffey and Pugh and Ms. Kruvant. The Investment Policy Committee is
composed of Messrs. Borts, Diehl, Gavian, Rochat and Silby and Ms. Krumsiek.
During fiscal 1998, trustees of the Fund not affiliated with the
Fund's Advisor were paid $30,434. Trustees of the Fund not affiliated with
the Advisor presently receive an annual fee of $20,500 for service as a
member of the Board of Trustees of the Calvert Group of Funds, and a fee of
$750 to $1,500 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.
Trustee Compensation Table
Fiscal Year 1998 Aggregate Pension or Total Compensation
Compensation Retirement from Benefits
(unaudited numbers) from Registrant Accrued as Registrant and Fund
for Service part of Complex paid to
as Trustee of Registrant Trustee**
Expenses*
Name of Trustee
Richard L. Baird, Jr. $2,444 $0 $39,550
Frank H. Blatz, Jr. $2,556 $2,556 $42,100
Frederick T. Borts $2,333 $0 $33,250
Charles E. Diehl $2,557 $2,557 $41,500
Douglas E. Feldman $2,556 $0 $36,250
Peter W. Gavian $2,556 $1,278 $36,250
John G. Guffey, Jr. $2,456 $0 $62,665
M. Charito Kruvant $2,556 $1,534 $36,250
Arthur J. Pugh $2,556 $0 $41,500
D. Wayne Silby $2,445 $0 $67,780
*Messrs. Blatz, Diehl, Gavian and Pugh and Ms. Kruvant have chosen to defer
a portion of their compensation. As of December 31, 1998, total deferred
compensation, including dividends and capital appreciation, was $644,247.37,
$672,374.09, $172,445.85, $216,322.53, and $23,295.55, for each trustee,
respectively.
** The Fund Complex consists of nine (9) 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 controlled subsidiary of
Ameritas Acacia Mutual Holding Company of Lincoln, Nebraska.
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, 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, effective with
the commencement of the Institutional Class (September 1998), the Advisor
receives a fee of 0.25% of the first $500 million of the average daily net
assets of the Fund, 0.225% of the next $400 million of such assets, 0.20% of
the next $400 million of such assets, 0.175% of the next $700 million of
such assets, and 0.15% on all assets in excess of $2 billion. Such fee is
payable monthly.
The Advisor provides the Fund with investment advice and research,
pays the salaries and fees of all Trustees and executive officers of the
Fund who are principals of the Advisor, and pays certain Fund advertising
and promotional expenses. The Fund pays all other administrative and
operating expenses, including: custodial fees; shareholder servicing,
dividend disbursing and transfer agency fees; administrative service fees;
federal and state securities registration fees; insurance premiums; trade
association dues; interest, taxes and other business 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 1996, 1997, and 1998 fiscal years were $1,238,849, $1,206,618, and
$1,037,947, respectively. No expense reimbursements have been required under
the Contract.
ADMINISTRATIVE SERVICES
Calvert Administrative Services Company ("CASC"), a wholly-owned
subsidiary of Calvert Group, Ltd., has been retained by the Fund to provide
certain administrative services necessary to the conduct of the Fund's
affairs. Such services include the preparation of corporate and regulatory
reports and filings, portfolio accounting, and the daily determination of
net investment income and net asset value per share. Effective with the
commencement of the Institutional Class (September 1998), Classes O, B, and
C pay an annual rate of 0.25%, while the Institutional Class pays an annual
rate of 0.05%, based on average daily net assets. Class T pays an annual
rate of 0.25%. There were no administrative services fees paid by the Fund
in the 1997 fiscal year. During fiscal year 1998, the Fund paid $208,596 in
administrative fees.
TRANSFER AND SHAREHOLDER SERVICING AGENTS
National Financial Data Services, Inc. ("NFDS"), 330 W. 9th Street,
Kansas City, Missouri 64105, a subsidiary of State Street Bank & Trust, has
been retained by the Fund to act as transfer agent and dividend disbursing
agent. These responsibilities include: responding to certain shareholder
inquiries and instructions, crediting and debiting shareholder accounts for
purchases and redemptions of Fund shares and confirming such transactions,
and daily updating of shareholder accounts to reflect declaration and
payment of dividends.
Calvert Shareholder Services, Inc. ("CSSI"), 4550 Montgomery
Avenue, Bethesda, Maryland 20814, a subsidiary of Calvert Group, Ltd., has
been retained by the Fund to act as shareholder servicing agent. Shareholder
servicing responsibilities include responding to shareholder inquiries and
instructions concerning their accounts, entering any telephoned purchases or
redemptions into the NFDS system, maintenance of broker-dealer data, and
preparing and distributing statements to shareholders regarding their
accounts. Calvert Shareholder Services, Inc. was the sole transfer agent
prior to January 1, 1998.
For these services, NFDS and Calvert Shareholder Services, Inc.
receive a fee based on the number of shareholder accounts and shareholder
transactions.
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
PricewaterhouseCoopers LLP, 250 West Pratt Street, Baltimore,
Maryland 21201, has been selected by the Board of Trustees to serve as
independent accountants for fiscal year 1999. State Street Bank & Trust
Company, N.A., 225 Franklin Street, Boston, Massachusetts 02110, currently
serves as custodian of the Fund's investments. First National Bank of
Maryland, 25 South Charles Street, Baltimore, Maryland 21203 also serves as
custodian of certain of the Fund's cash assets. Neither custodian has any
part in deciding the Fund's investment policies or the choice of securities
that are to be purchased or sold for the Fund.
METHOD OF DISTRIBUTION
The Fund has entered into an agreement with Calvert Distributors,
Inc. ("CDI"), 4550 Montgomery Avenue, Bethesda, Maryland 20814, whereby CDI,
acting as principal underwriter for the Fund, makes a continuous offering of
the Fund's securities on a "best efforts" basis. Under the terms of the
agreement, CDI is entitled to receive a distribution fee from the Fund paid
through the Distribution Plans of Class B, C, and T. Class O and the
Institutional Class have no Distribution Plans. For Class B and Class C
shares, CDI receives any CDSC paid.
Pursuant to Rule 12b-1 under the 1940 Act, Class B, C, and T have
adopted Distribution Plans (the "Plans") which permit them to pay certain
expenses associated with the distribution and servicing of its shares. Such
expenses may not exceed, on an annual basis, 1.00% of the average daily net
assets of Class B and C, respectively, and 0.25% of Class T.
The Distribution Plans were approved by the Board of Trustees,
including the Trustees who are not "interested persons" of the Fund (as that
term is defined in the 1940 Act) and who have no direct or indirect
financial interest in the operation of the Plans or in any agreements
related to the Plans. The selection and nomination of the Trustees who are
not interested persons of the Fund is committed to the discretion of such
disinterested Trustees. In establishing the Plans, the Trustees considered
various factors including the amount of the distribution expenses. The
Trustees determined that there is a reasonable likelihood that the Plans
will benefit the affected Class and its shareholders.
The Plans may be terminated by vote of a majority of the
non-interested Trustees who have no direct or indirect financial interest in
the Plans, or by vote of a majority of the outstanding shares of the
affected Class. Any change in the Plans that would materially increase the
cost to the affected Class requires approval of the shareholders of that
Class; otherwise, the Plans may be amended by the Trustees, including a
majority of the non-interested Trustees as described above. The Plans will
continue in effect for successive one-year terms provided that such
continuance is specifically approved by (i) the vote of a majority of the
Trustees who are not parties to the Plans or interested persons of any such
party and who have no direct or indirect financial interest in the Plans,
and (ii) the vote of a majority of the entire Board of Trustees.
Apart from the Plans, the Advisor and CDI, at their own expense,
may incur costs and pay expenses associated with the distribution of shares
of the Fund.
Certain broker-dealers, and/or other persons may receive
compensation from the investment advisor, underwriter, or their affiliates
for the sale and distribution of the securities or for services to the
Portfolio. Such compensation may include additional compensation based on
assets held through that firm beyond the regularly scheduled rates, and
finder's fees payments to firms whose representatives are responsible for
soliciting a new account where the accountholder does not choose to purchase
through that firm.
GENERAL INFORMATION
The Fund is organized as a Massachusetts business trust, and has
one series, the Calvert First Government Money Market Fund which was known
as First Variable Rate Fund prior to September 1, 1991. 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 offers five separate classes of shares: Class O, Class B,
Class C, offered in one prospectus; the Institutional Class, offered in a
separate prospectus, and Class T, also offered by a separate prospectus.
Class T is also known as The Advisors Group Reserves Fund. The classes
represent interests in the same portfolio of investments but, as further
described in the prospectuses, each class may be subject to differing sales
charges and expenses, which will result in different dividends and
distributions. Upon any liquidation of the Fund, shareholders of each class
are entitled to share pro rata in the net assets available for distribution.
The Fund will send its shareholders 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 Prospectuses 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.
CONTROL PERSONS AND PRINCIPAL HOLDERS OF SECURITIES
As of April 20, 1999, the following shareholders owned of record 5%
or more of the Class of Calvert First Government Money Market Fund shown:
Name and Address % of Ownership
Craig Miller
Bend, Oregon 24.75%, Class B
Saul Maluth
Hicksville, New York 24.43%, Class B
Dean Witter Reynolds
FBO S. Stetz
Mardela Spgs, Maryland 16.28%, Class B
Hillel Gray
Jerusalem, Israel 8.74%, Class B
Sharon Simes
Seattle, Washington 6.76%, Class B
Laurie Davidson
Renton, Washington 20.66%, Class C
Lionel Weisman
Lake Oswego, Oregon 11.24%, Class C
Painewebber FBO
D. Solnit
San Rafael, California 7.34%, Class C
Community of Hospitality
Decatur, Georgia 6.45%, Class C
A. Short & A. Connor
Covington, Georgia 6.39%, Class C
William or Karen Neumeister
Edmonds, Washington 5.44%, Class C
Montgomery County Government
Rockville, Maryland 38.20%, Class I
Maryland State Treasurer
Annapolis, Maryland 37.86%, Class I
Working Assets Funding
San Francisco, California 12.35%, Class I
<PAGE>
PART C. OTHER INFORMATION
Item 23. 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, filed herewith.
6. Underwriting and Dealer Agreement, (incorporated by reference to
Registrant's Post-Effective Amendment No. 35, March 31, 1998).
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. 35, March 31, 1998).
9. Transfer Agency Contract, (incorporated by reference to
Registrant's Post-Effective Amendment No. 35, March 31, 1998).
10. Opinion and Consent of Counsel as to Legality of
Shares Being Registered.
11. Consent of Auditors for use of reports, filed herewith.
15. Plan of Distribution, (incorporated by reference to Registrant's
Post-Effective Amendment No. 35, March 31, 1998).
18. Multiple-class Plan under the Investment Company Act of 1940 Rule
18f-3, (incorporated by reference to Registrant's Post-Effective
Amendment No. 35, March 31, 1998).
Item 24. Persons Controlled By or Under Common Control With Registrant
Not Applicable.
Item 25. 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 $5 million in excess directors
and officers liability coverage for the independent trustees/directors only.
Registrant also maintains an $8 million Investment Company Blanket Bond issued
by ICI Mutual Insurance Company, P.O. Box 730, Burlington, Vermont, 05402.
Item 26. Business and Other Connections of Investment Adviser
Name of Company, Principal
Name Business and Address Capacity
Barbara J. Krumsiek Calvert Variable Series, Inc. Officer
Calvert Municipal Fund, Inc. and
Calvert World Values Fund, Inc. Director
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
First Variable Rate Fund for Officer
Government Income and
Calvert Tax-Free Reserves Trustee
Calvert Social Investment Fund
Calvert Cash Reserves
The Calvert Fund
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Asset Management Co., Inc. Officer
Investment Advisor and
4550 Montgomery Avenue Director
Bethesda, Maryland 20814
----------------
Calvert Group, Ltd. Officer
Holding Company and
4550 Montgomery Avenue Director
Bethesda, Maryland 20814
----------------
Calvert Shareholder Services, Inc. Officer
Transfer Agent and
4550 Montgomery Avenue Director
Bethesda, Maryland 20814
---------------
Calvert Administrative Services Co. Officer
Service Company and
4550 Montgomery Avenue Director
Bethesda, Maryland 20814
---------------
Calvert Distributors, Inc. Officer
Broker-Dealer and
4550 Montgomery Avenue Director
Bethesda, Maryland 20814
---------------
Calvert-Sloan Advisers, LLC Director
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert New World Fund, Inc. Director
Investment Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
--------------
Alliance Capital Mgmt. L.P. Sr. Vice President
Mutual Fund Division Director
1345 Avenue of the Americas
New York, NY 10105
--------------
Ronald M. Wolfsheimer First Variable Rate Fund Officer
for Government Income
Calvert Tax-Free Reserves
Calvert Cash Reserves
Calvert Social Investment Fund
The Calvert Fund
Calvert Variable Series, Inc.
Calvert Municipal Fund, Inc.
Calvert World Values Fund, Inc.
Calvert New World Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
--------------
Calvert Asset Management Co., Inc. Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Group, Ltd. Officer
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Shareholder Services, Inc. Officer
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Administrative Services Co. Officer
Service Company and
4550 Montgomery Avenue Director
Bethesda, Maryland 20814
---------------
Calvert Distributors, Inc. Officer
Broker-Dealer and
4550 Montgomery Avenue Director
Bethesda, Maryland 20814
---------------
Calvert-Sloan Advisers, LLC Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
David R. Rochat First Variable Rate Fund Officer
for Government Income and
Calvert Tax-Free Reserves Trustee
Calvert Cash Reserves
The Calvert Fund
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Municipal Fund, Inc. Officer
Investment Company and
4550 Montgomery Avenue Director
Bethesda, Maryland 20814
---------------
Calvert Asset Management Co., Inc. Officer
Investment Advisor and
4550 Montgomery Avenue Director
Bethesda, Maryland 20814
---------------
Chelsea Securities, Inc. Officer
Securities Firm and
Post Office Box 93 Director
Chelsea, Vermont 05038
---------------
Grady, Berwald & Co. Officer
Holding Company and
43A South Finley Avenue Director
Basking Ridge, NJ 07920
---------------
Reno J. Martini Calvert Asset Management Co., Inc. Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Group, Ltd. Director
Holding Company and
4550 Montgomery Avenue Officer
Bethesda, Maryland 20814
---------------
First Variable Rate Fund Officer
for Government Income
Calvert Tax-Free Reserves
Calvert Cash Reserves
Calvert Social Investment Fund
The Calvert Fund
Calvert Variable Series, Inc.
Calvert Municipal Fund, Inc.
Calvert World Values Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert New World Fund, Inc. Director
Investment Company and
4550 Montgomery Avenue Officer
Bethesda, Maryland 20814
---------------
Calvert-Sloan Advisers, LLC Director
Investment Advisor and
4550 Montgomery Avenue Officer
Bethesda, Maryland 20814
---------------
Charles T. Nason Ameritas Acacia Mutual Holding Co. Officer
Acacia National Life Insurance and Director
Insurance Companies
7315 Wisconsin Avenue
Bethesda, Maryland 20814
---------------
Acacia Financial Corporation Officer
Holding Company and
7315 Wisconsin Avenue Director
Bethesda, Maryland 20814
---------------
Acacia Federal Savings Bank Director
Savings Bank
7600-B Leesburg Pike
Falls Church, Virginia 22043
---------------
Enterprise Resources, Inc. Director
Business Support Services
7315 Wisconsin Avenue
Bethesda, Maryland 20814
---------------
Acacia Realty Square, L.L.C. Director
Realty Investments
7315 Wisconsin Avenue
Bethesda, Maryland 20814
---------------
Gardner Montgomery Company Director
Tax Return Preparation Services
7315 Wisconsin Avenue
Bethesda, Maryland 20814
---------------
Calvert Group, Ltd. Director
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Administrative Services Co. Director
Service Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Asset Management Co., Inc. Director
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Shareholder Services, Inc. Director
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Social Investment Fund Trustee
Investment Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
-----------------
The Advisors Group, Inc. Director
Broker-Dealer and
Investment Advisor
7315 Wisconsin Avenue
Bethesda, Maryland 20814
---------------
Robert-John H. Acacia National Life Insurance Officer
Sands Insurance Company and
7315 Wisconsin Avenue Director
Bethesda, Maryland 20814
----------------
Ameritas Acacia Mutual Holding Co. Officer
Insurance Company
7315 Wisconsin Avenue
Bethesda, Maryland 20814
----------------
Acacia Financial Corporation Officer
Holding Company and
7315 Wisconsin Avenue Director
Bethesda, Maryland 20814
----------------
Acacia Federal Savings Bank Officer
Savings Bank
7600-B Leesburg Pike
Falls Church, Virginia 22043
---------------
Enterprise Resources, Inc. Director
Business Support Services
7315 Wisconsin Avenue
Bethesda, Maryland 20814
---------------
Acacia Realty Square, L.L.C. Director
Realty Investments
7315 Wisconsin Avenue
Bethesda, Maryland 20814
---------------
The Advisors Group, Inc. Director
Broker-Dealer and
Investment Advisor
7315 Wisconsin Avenue
Bethesda, Maryland 20814
---------------
Gardner Montgomery Company Director
Tax Return Preparation Services
7315 Wisconsin Avenue
Bethesda, Maryland 20814
---------------
Calvert Group, Ltd. Director
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Administrative Services Co. Director
Service Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Asset Management, Co., Inc. Director
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Shareholder Services, Inc. Director
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
William M. Tartikoff Acacia National Life Insurance Officer
Insurance Company
7315 Wisconsin Avenue
Bethesda, Maryland 20814
----------------
First Variable Rate Fund for Officer
Government Income
Calvert Tax-Free Reserves
Calvert Cash Reserves
Calvert Social Investment Fund
The Calvert Fund
Calvert Variable Series, Inc.
Calvert Municipal Fund, Inc.
Calvert World Values Fund, Inc.
Calvert New World Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Group, Ltd. Officer
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Administrative Officer
Services Company
Service Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Asset Management Co. Inc. Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Shareholder Services, Inc. Officer
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Distributors, Inc. Director
Broker-Dealer and
4550 Montgomery Avenue Officer
Bethesda, Maryland 20814
----------------
Calvert-Sloan Advisers, LLC Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Susan Walker Bender Calvert Group, Ltd. Officer
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Administrative Services Co. Officer
Service Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Asset Management Co., Inc. Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Shareholder Services, Inc. Officer
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Distributors, Inc. Officer
Broker-Dealer
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert-Sloan Advisers, LLC Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
First Variable Rate Fund for Officer
Government Income
Calvert Tax-Free Reserves
Calvert Cash Reserves
Calvert Social Investment Fund
The Calvert Fund
Calvert Variable Series, Inc.
Calvert Municipal Fund, Inc.
Calvert World Values Fund, Inc.
Calvert New World Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Katherine Stoner Calvert Group, Ltd. Officer
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Administrative Services Co. Officer
Service Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Asset Management Co., Inc. Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Shareholder Services, Inc. Officer
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Distributors, Inc. Officer
Broker-Dealer
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert-Sloan Advisers, LLC Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
First Variable Rate Fund for Officer
Government Income
Calvert Tax-Free Reserves
Calvert Cash Reserves
Calvert Social Investment Fund
The Calvert Fund
Calvert Variable Series, Inc.
Calvert Municipal Fund, Inc.
Calvert World Values Fund, Inc.
Calvert New World Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Ivy Wafford Duke Calvert Group, Ltd. Officer
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Administrative Services Co. Officer
Service Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Asset Management Co., Inc. Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Shareholder Services, Inc. Officer
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Distributors, Inc. Officer
Broker-Dealer
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert-Sloan Advisers, LLC Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
First Variable Rate Fund for Officer
Government Income
Calvert Tax-Free Reserves
Calvert Cash Reserves
Calvert Social Investment Fund
The Calvert Fund
Calvert Variable Series, Inc.
Calvert Municipal Fund, Inc.
Calvert World Values Fund, Inc.
Calvert New World Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Victor Frye Calvert Group, Ltd. Officer
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Administrative Services Co. Officer
Service Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Asset Management Co., Inc. Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Shareholder Services, Inc. Officer
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Distributors, Inc. Officer
Broker-Dealer
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
First Variable Rate Fund for Officer
Government Income
Calvert Tax-Free Reserves
Calvert Cash Reserves
Calvert Social Investment Fund
The Calvert Fund
Calvert Variable Series, Inc.
Calvert Municipal Fund, Inc.
Calvert World Values Fund, Inc.
Calvert New World Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
The Advisors Group, Inc. Counsel
Broker-Dealer and and
Investment Advisor Compliance
7315 Wisconsin Avenue Manager
Bethesda, Maryland 20814
---------------
Daniel K. Hayes Calvert Asset Management Co., Inc. Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
First Variable Rate Fund for Officer
Government Income
Calvert Tax-Free Reserves
Calvert Cash Reserves
Calvert Social Investment Fund
The Calvert Fund
Calvert Variable Series, Inc.
Calvert Municipal Fund, Inc.
Calvert World Values Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Steve Van Order Calvert Asset Management Officer
Company, Inc.
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
John Nichols Calvert Asset Management Officer
Company, Inc.
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
David Leach Calvert Asset Management Officer
Company, Inc.
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Matthew D. Gelfand Calvert Asset Management Officer
Company, Inc.
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Strategic Investment Management Officer
Investment Advisor
1001 19th Street North
Arlington, Virginia 20009
------------------
Andrea Hagans Calvert Asset Management Officer
Company, Inc.
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Item 27. Principal Underwriters
(a) Registrant's principal underwriter underwrites shares of
First Variable Rate Fund for Government Income, Calvert Tax-Free Reserves,
Calvert Social Investment Fund, Calvert Cash Reserves, The Calvert Fund,
Calvert Municipal Fund, Inc., Calvert World Values Fund, Inc., Calvert New
World Fund, Inc., and Calvert Variable Series, Inc. (formerly named Acacia
Capital Corporation).
(b) Positions of Underwriter's Officers and Directors
Name and Principal Position(s) with Position(s) with
Business Address Underwriter Registrant
Barbara J. Krumsiek Director and President President and Trustee
Ronald M. Wolfsheimer Director, Senior Vice Treasurer
President and Chief Financial Officer
William M. Tartikoff Director, Senior Vice Vice President and
President and Secretary Secretary
Craig Cloyed Senior Vice President None
Karen Becker Vice President, Operations None
Steve Cohen Vice President None
Geoffrey Ashton Regional Vice President None
Martin Brown Regional Vice President None
Bill Hairgrove Regional Vice President None
Janet Haley Regional Vice President None
Steve Himber Regional Vice President None
Ben Ogbogu Regional Vice President None
Tom Stanton Regional Vice President None
Christine Teske Regional Vice President None
Susan Walker Bender Assistant Secretary Assistant Secretary
Katherine Stoner Assistant Secretary Assistant Secretary
Ivy Wafford Duke Assistant Secretary Assistant Secretary
Victor Frye Assistant Secretary Assistant Secretary &
& Compliance Officer Compliance Officer
(c) Inapplicable.
Item 28. Location of Accounts and Records
Ronald M. Wolfsheimer, Treasurer
and
William M. Tartikoff, Secretary
4550 Montgomery Avenue, Suite 1000N
Bethesda, Maryland 20814
Item 29. Management Services
Not Applicable
Item 30. Undertakings
Not Applicable
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the Investment
Company Act of 1940, the Registrant certifies that it meets all of the
requirements for effectiveness of this registration statement under Rule
485(b) under the Securities Act and has duly caused this registration
statement to be signed on its behalf by the undersigned, duly authorized, in
the City of Bethesda, and State of Maryland, on the 23rd day of April, 1999.
FIRST VARIABLE RATE FUND
By:
________________**________________
Barbara J. Krumsiek
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 and on the date indicated.
Signature Title Date
__________**____________ President and 4/23/99
Barbara J. Krumsiek Trustee (Principal Executive Officer)
__________**____________ Principal Accounting 4/23/99
Ronald M. Wolfsheimer Officer
__________**____________ Trustee 4/23/99
Richard L. Baird, Jr.
__________**____________ Trustee 4/23/99
Frank H. Blatz, Jr., Esq.
__________**____________ Trustee 4/23/99
Frederick T. Borts, M.D.
__________**____________ Trustee 4/23/99
Charles E. Diehl
__________**____________ Trustee 4/23/99
Douglas E. Feldman
__________**____________ Trustee 4/23/99
Peter W. Gavian
__________**____________ Trustee 4/23/99
John G. Guffey, Jr.
__________**____________ Trustee 4/23/99
M. Charito Kruvant
__________**____________ Trustee 4/23/99
Arthur J. Pugh
__________**____________ Trustee 4/23/99
David R. Rochat
__________**____________ Trustee 4/23/99
D. Wayne Silby
**By Katherine Stoner as Attorney-in-fact, pursuant to Power of Attorney Forms
on file.
POWER OF ATTORNEY
I, the undersigned Trustee/Director of Calvert Social Investment
Fund, Calvert World Values Fund, Inc., Calvert Variable Series, Inc.,
Calvert New World Fund, Inc., First Variable Rate Fund for Government
Income, Calvert Tax-Free Reserves, Calvert Cash Reserves, The Calvert Fund
and Calvert Municipal Fund, Inc. (each, respectively, the "Fund"), hereby
constitute Ronald M. Wolfsheimer, William M. Tartikoff, Susan Walker Bender,
Katherine Stoner, Lisa Crossley Newton, and Ivy Wafford Duke 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 Fund 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 Fund 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 Fund,
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, the Internal Revenue Code of 1986, 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 Fund.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the Fund,
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.
June 2, 1998
Date /Signature/
Katherine Stoner Barbara J. Krumsiek
Witness Name of Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Trustee/Director of Calvert Social Investment
Fund, First Variable Rate Fund for Government Income, Calvert Tax-Free
Reserves, Calvert Cash Reserves, The Calvert Fund and Calvert Municipal
Fund, Inc. (each, respectively, the "Fund"), hereby constitute Ronald M.
Wolfsheimer, William M. Tartikoff, Susan Walker Bender, Katherine Stoner,
Lisa Crossley Newton, and Ivy Wafford Duke 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 Fund 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 Fund 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 Fund,
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, the Internal Revenue Code of 1986, 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 Fund.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the Fund,
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.
June 2, 1998
Date /Signature/
Susan Walker Bender Richard L. Baird, Jr.
Witness Name of Trustee/Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Trustee/Director of Calvert Variable Series,
Inc., First Variable Rate Fund for Government Income, Calvert Tax-Free
Reserves, Calvert Cash Reserves, The Calvert Fund and Calvert Municipal
Fund, Inc. (each, respectively, the "Fund"), hereby constitute Ronald M.
Wolfsheimer, William M. Tartikoff, Susan Walker Bender, Katherine Stoner,
Lisa Crossley Newton, and Ivy Wafford Duke 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 Fund 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 Fund 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 Fund,
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, the Internal Revenue Code of 1986, 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 Fund.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the Fund,
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.
June 3, 1998
Date /Signature/
Frank H. Blatz, Jr. Charles E. Diehl
Witness Name of 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, The
Calvert Fund, and Calvert Municipal Fund, Inc. (collectively, the "Funds"),
hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff, Susan Walker
Bender, Katherine Stoner, Lisa Crossley, and Ivy Wafford Duke 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 7, 1997
Date /Signature/
Edwidge Saint-Felix 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, The
Calvert Fund, and Calvert Municipal Fund, Inc. (collectively, the "Funds"),
hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff, Susan Walker
Bender, Katherine Stoner, Lisa Crossley, and Ivy Wafford Duke 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 7, 1997
Date /Signature/
Edwidge Saint-Felix Peter W. Gavian
Witness Name of Trustee/Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Trustee/Director of Calvert Social Investment
Fund, Calvert World Values Fund, Inc., First Variable Rate Fund for
Government Income, Calvert Tax-Free Reserves, Calvert Cash Reserves, The
Calvert Fund and Calvert Municipal Fund, Inc. (each, respectively, the
"Fund"), hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff,
Susan Walker Bender, Katherine Stoner, Lisa Crossley Newton, and Ivy Wafford
Duke 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 Fund 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 Fund 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 Fund,
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, the Internal Revenue Code of 1986, 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 Fund.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the Fund,
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.
June 2, 1998
Date /Signature/
M. Charito Kruvant 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, The
Calvert Fund, and Calvert Municipal Fund, Inc. (collectively, the "Funds"),
hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff, Susan Walker
Bender, Katherine Stoner, Lisa Crossley, and Ivy Wafford Duke 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 7, 1997
Date /Signature/
Edwidge Saint-Felix M. Charito Kruvant
Witness Name of Trustee/Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Trustee/Director of Calvert Variable Series,
Inc., First Variable Rate Fund for Government Income, Calvert Tax-Free
Reserves, Calvert Cash Reserves, The Calvert Fund and Calvert Municipal
Fund, Inc. (each, respectively, the "Fund"), hereby constitute Ronald M.
Wolfsheimer, William M. Tartikoff, Susan Walker Bender, Katherine Stoner,
Lisa Crossley Newton, and Ivy Wafford Duke 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 Fund 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 Fund 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 Fund,
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, the Internal Revenue Code of 1986, 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 Fund.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the Fund,
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.
June 3, 1998
Date /Signature/
Frank H. Blatz, Jr. Arthur James 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, The
Calvert Fund, and Calvert Municipal Fund, Inc. (collectively, the "Funds"),
hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff, Susan Walker
Bender, Katherine Stoner, Lisa Crossley, and Ivy Wafford Duke 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 7, 1997
Date /Signature/
Katherine Stoner David R. Rochat
Witness Name of Trustee/Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Trustee/Director of Calvert Social Investment
Fund, Calvert World Values Fund, Inc., First Variable Rate Fund for
Government Income, Calvert Tax-Free Reserves, Calvert Cash Reserves, The
Calvert Fund and Calvert Municipal Fund, Inc. (each, respectively, the
"Fund"), hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff,
Susan Walker Bender, Katherine Stoner, Lisa Crossley Newton, and Ivy Wafford
Duke 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 Fund 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 Fund 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 Fund,
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, the Internal Revenue Code of 1986, 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 Fund.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the Fund,
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.
June 2, 1998
Date /Signature/
Barbara J. Krumsiek 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, The
Calvert Fund and Calvert Municipal Fund, Inc. (each, respectively, the
"Fund"), hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff,
Susan Walker Bender, Katherine Stoner, Lisa Crossley Newton, and Ivy Wafford
Duke 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 Fund 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 Fund 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 Fund,
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, the Internal Revenue Code of 1986, 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 Fund.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the Fund,
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.
September 16, 1998
Date /Signature/
John E. Dudley Frederick Borts, M.D.
Witness Name of Trustee/Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Trustee/Director of Calvert Variable Series,
Inc., First Variable Rate Fund for Government Income, Calvert Tax-Free
Reserves, Calvert Cash Reserves, The Calvert Fund and Calvert Municipal
Fund, Inc. (each, respectively, the "Fund"), hereby constitute Ronald M.
Wolfsheimer, William M. Tartikoff, Susan Walker Bender, Katherine Stoner,
Lisa Crossley Newton, and Ivy Wafford Duke 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 Fund 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 Fund 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 Fund,
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, the Internal Revenue Code of 1986, 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 Fund.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the Fund,
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.
June 3, 1998
Date /Signature/
Elizabeth G. Murray Frank H. Blatz, Jr.
Witness Name of Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned officer of Calvert Social Investment Fund,
Calvert World Values Fund, Inc., Calvert Variable Series, Inc., Calvert New
World Fund, Inc., First Variable Rate Fund for Government Income, Calvert
Tax-Free Reserves, Calvert Cash Reserves, The Calvert Fund and Calvert
Municipal Fund, Inc. (each, respectively, the "Fund"), hereby constitute
Ronald M. Wolfsheimer, William M. Tartikoff, Susan Walker Bender, Katherine
Stoner, Lisa Crossley Newton, and Ivy Wafford Duke 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 Fund 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 Fund 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 Fund,
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, the Internal Revenue Code of 1986, 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 Fund.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the Fund,
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.
June 2, 1998
Date /Signature/
Edwidge Saint-Felix Ronald M. Wolfsheimer
Witness Name of Officer
Exhibit 10
April 23, 1999
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
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. 39 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 (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. 39 to its Registration Statement.
Sincerely,
/s/
Katherine Stoner
Associate General Counsel
PricewaterhouseCoopers logo
PricewaterhouseCoopers LLP
250 West Pratt Street
Suite 2100
Baltimore MD 21201-2304
Telephone (410) 783 7600
Facsimile (410) 783 7680
CONSENT OF INDEPENDENT ACCOUNTANTS
We consent to the incorporation by reference in Post-Effective Amendment No.
39 to the Registration Statement of First Variable Rate Fund for Government
Income on Form N-1A (File Number 2-56809 and 811-2633) of our reports dated
February 10, 1999, on our audit of the financial statements and financial
highlights of Calvert First Government Money Market Fund, which report is
included in the Annual Report to Shareholders for the year ended December 31,
1998, which is incorporated by reference in the Registration Statement. We
also consent to the reference to our firm under the caption "Financial
Highlights" in the Prospectus and "Independent Accountants" in the Statement
of Additional Information.
/s/
PricewaterhouseCoopers LLP
Baltimore, Maryland
April 23, 1999
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000205355
<NAME> FIRST VARIABLE RATE FUND FOR GOVERNMENT INCOME
<SERIES>
<NUMBER> 422
<NAME> CALVERT FIRST GOVERNMENT MONEY MARKET FUND, CLASS B
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JUL-01-1998
<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> 264539
<INVESTMENTS-AT-VALUE> 264539
<RECEIVABLES> 2366
<ASSETS-OTHER> 279
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 267184
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 610
<TOTAL-LIABILITIES> 610
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 74
<SHARES-COMMON-STOCK> 74
<SHARES-COMMON-PRIOR> 53
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 74
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 1
<OTHER-INCOME> 0
<EXPENSES-NET> 1
<NET-INVESTMENT-INCOME> 0
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 0
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (1)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 119
<NUMBER-OF-SHARES-REDEEMED> (97)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 21
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 10
<AVERAGE-NET-ASSETS> 67
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> 0.027
<PER-SHARE-GAIN-APPREC> (0.0)
<PER-SHARE-DIVIDEND> (0.027)
<PER-SHARE-DISTRIBUTIONS> 0.0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> 2.00
<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> 423
<NAME> CALVERT FIRST GOVERNMENT MONEY MARKET FUND, CLASS C
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JUL-01-1998
<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> 264539
<INVESTMENTS-AT-VALUE> 264539
<RECEIVABLES> 2366
<ASSETS-OTHER> 279
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Exhibit 99.B5
INVESTMENT ADVISORY AGREEMENT
INVESTMENT ADVISORY AGREEMENT, made this 1st day of March, 1999, by
and between CALVERT ASSET MANAGEMENT COMPANY, INC., a Delaware corporation
(the "Advisor"), and FIRST VARIABLE RATE FUND FOR GOVERNMENT INCOME, a
Massachusetts business trust created pursuant to a Declaration of Trust
filed with the Secretary of State of the Commonwealth of Massachusetts (the
"Trust"), both having their principal place of business at 4550 Montgomery
Avenue, Bethesda, Maryland.
WHEREAS, the Trust is registered as an investment company under the
Investment Company Act of 1940, as amended (the "1940 Act"), for the purpose
of investing and reinvesting its assets in securities, as set forth in its
Declaration of Trust, its By-laws and its registration statements under the
1940 Act and the Securities Act of 1933 (the "1933 Act"), as amended; and
the Trust desires to avail itself of the services, information, advice,
assistance and facilities of an investment advisor and to have an investment
advisor perform for it various investment advisory, research services and
other management services; and
WHEREAS, the Advisor is an investment advisor registered under the
Investment Advisers Act of 1940, as amended, and is engaged in the business
of rendering management and investment advisory services to investment
companies and desires to provide such services to the Trust;
NOW, THEREFORE, in consideration of the terms and conditions
hereinafter set forth, it is agreed as follows:
1. Employment of the Advisor. The Trust hereby employs the Advisor to
manage the investment and reinvestment of the Trust assets, subject
to the control and direction of the Trust's Board of Trustees, for
the period and on the terms hereinafter set forth. The Advisor
hereby accepts such employment and agrees during such period to
render the services and to assume the obligations in return for the
compensation provided herein. The Advisor shall for all purposes
herein be deemed to be an independent contractor and shall, except
as expressly provided or authorized (whether herein or otherwise),
have no authority to act for or represent the Trust in any way or
otherwise be deemed an agent of the Trust.
2. Obligations of and Services to be Provided by the Advisor. The
Advisor undertakes to provide the following services and to assume
the following obligations:
a. The Advisor shall manage the investment and reinvestment
of the Trust's assets, subject to and in accordance with
the investment objectives and policies of the Trust and
any directions which the Trust's Board of Trustees may
issue from time to time. In pursuance of the foregoing,
the Advisor shall make all determinations with respect to
the investment of the Trust's assets and the purchase and
sale of portfolio securities and shall take such steps as
may be necessary to implement the same. Such determination
and services shall also include determining the manner in
which voting rights, rights to consent to corporate
action, any other rights pertaining to the Trust's
portfolio securities shall be exercised. The Advisor shall
render regular reports to the Trust's Board of Trustees
concerning the Trust's investment activities.
b. The Advisor shall, in the name of the Trust on behalf of
the Trust, place orders for the execution of the Trust's
portfolio transactions in accordance with the policies
with respect thereto set forth in the Trust's registration
statements under the 1940 Act and the 1933 Act, as such
registration statements may be amended from time to time.
In connection with the placement of orders for the
execution of the Trust's portfolio transactions the
Advisor shall create and maintain all necessary brokerage
records of the Trust in accordance with all applicable
laws, rules and regulations, including but not limited to
records required by Section 31(a) of the 1940 Act. All
records shall be the property of the Trust and shall be
available for inspection and use by the SEC, the Trust or
any person retained by the Trust. Where applicable, such
records shall be maintained by the Advisor for the periods
and the places required by Rule 31a-2 under the 1940 Act.
c. The Advisor shall bear its expenses of providing services
to the Trust pursuant to this Agreement except such
expenses as are undertaken by the Trust. In addition, the
Advisor shall pay the salaries and fees of all Trustees
and executive officers who are employees of the Advisor or
its affiliates ("Advisor Employees").
3. Expenses of The Trust. The Trust shall pay all expenses other than
those expressly assumed by the Advisor herein, which expenses
payable by the Trust shall include, but are not limited to:
a. Fees to the Advisor as provided herein;
b. Legal and audit expenses;
c. Fees and expenses related to the registration and
qualification of the Trust and its shares for distribution
under federal and state securities laws;
d. Expenses of the administrative services agent, transfer
agent, registrar, custodian, dividend disbursing agent and
shareholder servicing agent;
e. Any telephone charges associated with shareholder
servicing or the maintenance of the Funds or Trust;
f. Salaries, fees and expenses of Trustees and executive
officers of the Trust, other than Advisor Employees;
g. Taxes and corporate fees levied against the Trust;
h. Brokerage commissions and other expenses associated with
the purchase and sale of portfolio securities for the
Trust;
i. Expenses, including interest, of borrowing money;
j. Expenses incidental to meetings of the Trust's
shareholders and the maintenance of the Trust's
organizational existence;
k. Expenses of printing stock certificates representing
shares of the Trust and expenses of preparing, printing
and mailing notices, proxy material, reports to regulatory
bodies and reports to shareholders of the Trust;
l. Expenses of preparing and typesetting of prospectuses of
the Trust;
m. Expenses of printing and distributing prospectuses to
shareholders of the Trust;
n. Association membership dues;
o. Insurance premiums for fidelity and other coverage;
p. Distribution Plan expenses, as permitted by Rule 12b-1
under the 1940 Act and as approved by the Board; and
q. Such other legitimate Trust expenses as the Board of
Trustees may from time to time determine are properly
chargeable to the Trust.
4. Compensation of Advisor.
a. As compensation for the services rendered and obligations
assumed hereunder by the Advisor, the Trust shall pay to
the Advisor within ten (10) days after the last day of
each calendar month a fee equal on an annualized basis as
shown on Schedule A. Any amendment to the Schedule
pertaining to any new or existing Fund shall not be deemed
to affect the interest of any other Fund and shall not
require the approval of the shareholders of any other Fund.
b. Such fee shall be computed and accrued daily. Upon
termination of this Agreement before the end of any
calendar month, the fee for such period shall be prorated.
For purposes of calculating the Advisor's fee, the daily
value of a Fund's net assets shall be computed by the same
method as the Fund uses to compute the value of its net
assets in connection with the determination of the net
asset value of its shares.
c. The Advisor reserves the right (i) to waive all or part
of its fee and assume expenses of a Fund and (ii) to make
payments to brokers and dealers in consideration of their
promotional or administrative services.
5. Activities of the Advisor. The services of the Advisor to the Trust
hereunder are not to be deemed exclusive, and the Advisor shall be
free to render similar services to others. It is understood that
Trustees and officers of the Trust are or may become interested in
the Advisor as stockholders, officers, or otherwise, and that
stockholders and officers of the Advisor are or may become
similarly interested in the Trust, and that the Advisor may become
interested in the Trust as a shareholder or otherwise.
6. Use of Names. The Trust shall not use the name of the Advisor in
any prospectus, sales literature or other material relating to the
Trust in any manner not approved prior thereto by the Advisor;
provided, however, that the Advisor shall approve all uses of its
name which merely refer in accurate terms to its appointment
hereunder or which are required by the SEC; and, provided, further,
that in no event shall such approval be unreasonably withheld. The
Advisor shall not use the name of the Trust or any Trust in any
material relating to the Advisor in any manner not approved prior
thereto by the Trust; provided, however, that the Trust shall
approve all uses of its name which merely refer in accurate terms
to the appointment of the Advisor hereunder or which are required
by the SEC; and, provide, further, that in no event shall such
approval be unreasonably withheld.
7. Liability of the Advisor. Absent willful misfeasance, bad faith,
gross negligence, or reckless disregard of obligations or duties
hereunder on the part of the Advisor, the Advisor shall not be
subject to liability to the Trust or to any shareholder of the
Trust for any act or omission in the course of, or connected with,
rendering services hereunder or for any losses that may be
sustained in the purchase, holding or sale of any security.
8. Force Majeure. The Advisor shall not be liable for delays or errors
occurring by reason of circumstances beyond its control, including
but not limited to acts of civil or military authority, national
emergencies, work stoppages, fire, flood, catastrophe, acts of God,
insurrection, war, riot, or failure of communication or power
supply. In the event of equipment breakdowns beyond its control,
the Advisor shall take reasonable steps to minimize service
interruptions but shall have no liability with respect thereto.
9. Renewal, Termination and Amendment. This Agreement shall continue
in effect with respect to the Trust, unless sooner terminated as
hereinafter provided, through December 31, 1999, and indefinitely
thereafter if its continuance shall be specifically approved at
least annually by vote of the holders of a majority of the
outstanding voting securities of the Trust or by vote of a majority
of the Trust's Board of Trustees; and further provided that such
continuance is also approved annually by the vote of a majority of
the Trustees who are not parties to this Agreement or interested
persons of the Advisor, cast in person at a meeting called for the
purpose of voting on such approval, or as allowed by law. This
Agreement may be terminated at any time, without payment of any
penalty, by the Trust's Board of Trustees or by a vote of the
majority of the outstanding voting securities of the Trust upon 60
days' prior written notice to the Advisor and by the Advisor upon
60 days' prior written notice to the Trust. This Agreement may be
amended at any time by the parties, subject to approval by the
Trust's Board of Trustees and, if required by applicable SEC rules
and regulations, a vote of a majority of the Trust's outstanding
voting securities. This Agreement shall terminate automatically in
the event of its assignment. The terms "assignment" and "vote of a
majority of the outstanding voting securities" shall have the
meaning set forth for such terms in the 1940 Act.
10. Severability. If any provision of this Agreement shall be held or
made invalid by a court decision, statute, rule or otherwise, the
remainder of this Agreement shall not be affected thereby.
11. Miscellaneous. Each party agrees to perform such further actions
and execute such further documents as are necessary to effectuate
the purposes hereof. This Agreement shall be construed and enforced
in accordance with and governed by the laws of the State of
Maryland. The captions in this Agreement are included for
convenience only and in no way define or delimit any of the
provisions hereof or otherwise affect their construction or effect.
IN WITNESS WHEREOF, the parties have duly executed this Agreement
as of the date first written above.
FIRST VARIABLE RATE FUND
FOR GOVERNMENT INCOME
By: /s/ Ron Wolfsheimer
Title: Treasurer
CALVERT ASSET MANAGEMENT COMPANY, INC.
By: /s/ Reno Martini
Title: Senior Vice President
Investment Advisory Agreement
Calvert Asset Management Company, Inc.
First Variable Rate Fund for Government Income
Schedule A
As compensation pursuant to Section 4 of the Investment Advisory Agreement
between Calvert Asset Management Company, Inc. (the "Advisor") and First
Variable Rate Fund for Government Income dated March 1, 1999, the Advisor is
entitled to receive an annual advisory fee (the "Fee") as shown below. The
Fee shall be computed daily and payable monthly, based on the average daily
net assets.
Calvert First Government Money Market Fund
0.25% of the value of the first $500,000,000 of the net assets;
0.225% of the next $400,000,000 of such assets;
0.20% of the next $400,000,000 of such assets;
0.175% of the next $700,000,000 of such assets; and
0.15% of all such assets in excess of $2,000,000,000.
