PROSPECTUS
APRIL 30, 2000
CALVERT FIRST GOVERNMENT MONEY MARKET FUND
INSTITUTIONAL CLASS
ABOUT THE FUND
2 INVESTMENT OBJECTIVE
2 INVESTMENT STRATEGIES AND RISKS
2 PERFORMANCE
3 FEES AND EXPENSES
ABOUT THE ADVISOR
3 MANAGEMENT AND ADVISORY FEES
SHAREHOLDER GUIDE
4 HOW TO BUY SHARES
5 DIVIDENDS AND TAXES
5 HOW TO SELL SHARES
6 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.
<PAGE>
INVESTMENT OBJECTIVE
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 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; SECURITIES ISSUED BY U.S. GOVERNMENT AGENCIES AND INSTRUMENTALITIES;
REPURCHASE AGREEMENTS; AND VARIABLE-RATE DEMAND NOTES. ALL INVESTMENTS MUST
COMPLY WITH THE SEC MONEY MARKET FUND REQUIREMENTS.
PRINCIPAL RISKS
- - 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.
PERFORMANCE
THE BAR CHART AND TABLE BELOW SHOW THE INSTITUTIONAL CLASS' ANNUAL RETURNS AND
ITS LONG-TERM PERFORMANCE. THE CHART AND TABLE PROVIDE SOME INDICATION OF THE
RISKS OF INVESTING IN THE FUND. THE CHART SHOWS HOW THE PERFORMANCE HAS VARIED
FROM YEAR TO YEAR. THE TABLES COMPARE RETURNS OVER TIME TO THE LIPPER
INSTITUTIONAL U.S. GOVERNMENT MONEY MARKET INDEX. THE INDEX IS A COMPOSITE INDEX
OF THE ANNUAL RETURN OF MUTUAL FUNDS THAT HAVE SIMILAR INVESTMENT GOALS.
INSTITUTIONAL CLASS SHARES HAVE AN ACTUAL INCEPTION DATE OF 9/15/98. HOWEVER,
CLASS O SHARES (NOT OFFERED IN THIS PROSPECTUS) HAVE AN INCEPTION DATE OF
12/7/76. IN THE CHART AND TABLE BELOW, PERFORMANCE RESULTS BEFORE 9/30/98 ARE
FOR CLASS O. BECAUSE CLASS O HAD HIGHER EXPENSES, ITS PERFORMANCE WAS LOWER THAN
THE INSTITUTIONAL CLASS WOULD HAVE REALIZED IN THE SAME PERIOD. THE FUND'S PAST
PERFORMANCE DOES NOT NECESSARILY INDICATE HOW IT WILL PERFORM IN THE FUTURE.
[INSERT BAR CHART HERE]
BEST QUARTER (OF PERIODS SHOWN) Q1 '90 1.90%
WORST QUARTER (OF PERIODS SHOWN) Q2 '93 0.66%
AVERAGE ANNUAL TOTAL RETURNS (AS OF 12.31.99)
1 YEAR 5 YEAR 10 YEAR
FIRST GOVERNMENT
INSTITUTIONAL CLASS 4.84% 4.98% 4.78%
LIPPER INSTITUTIONAL U.S.
GOVERNMENT MONEY
MARKET INDEX 4.80% 5.23% 5.05%
FOR CURRENT YIELD INFORMATION ON THE INSTITUTIONAL CLASS, CALL 800-317-2274, OR
VISIT CALVERT GROUP'S WEBSITE AT WWW.CALVERT.COM.
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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.
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
ANNUAL FUND OPERATING EXPENSES1
(EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
INSTITUTIONAL
CLASS
MANAGEMENT FEES .30%
DISTRIBUTION AND SERVICE (12B-1) FEES NONE
OTHER EXPENSES .20%
TOTAL ANNUAL FUND OPERATING EXPENSES .50%
1THE INSTITUTIONAL CLASS EXPENSES ARE BASED ON THE MOST RECENT FISCAL YEAR.
MANAGEMENT FEES INCLUDE THE ADMINISTRATIVE FEE PAID BY THE FUND TO CALVERT
ADMINISTRATIVE SERVICES COMPANY, AN AFFILIATE OF THE ADVISOR.
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 5 YEARS 10 YEARS
CALVERT FIRST
GOVERNMENT
INSTITUTIONAL CLASS $5,113 $16,038 $27,969 $62,823
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 FUND
PORTFOLIOS, INCLUDING THE FIRST AND LARGEST FAMILY OF SOCIALLY SCREENED FUNDS.
AS OF DECEMBER 31, 1999, CAMCO HAD OVER $6.5 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 THE FUND'S AVERAGE DAILY NET ASSETS WAS .25%.
<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 EACH 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 4:00 P.M. ET). EACH 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 RECEIVED BECAUSE THE 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 5:00 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. SHARES MAY
ONLY BE EXCHANGED FOR SHARES OF THE SAME CLASS OF ANOTHER CALVERT FUND.
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.
EXCHANGE REQUESTS WILL NOT BE ACCEPTED ON ANY DAY WHEN CALVERT IS OPEN BUT THE
FUND'S CUSTODIAN BANK IS CLOSED (E.G., COLUMBUS DAY AND VETERAN'S DAY); THESE
EXCHANGE REQUESTS WILL BE PROCESSED THE NEXT DAY THE FUND'S CUSTODIAN BANK IS
OPEN.
EACH FUND AND THE DISTRIBUTOR RESERVE THE RIGHT AT ANY TIME TO REJECT OR CANCEL
ANY PART OF ANY PURCHASE OR EXCHANGE ORDER; MODIFY ANY TERMS OR CONDITIONS OF
PURCHASE OF SHARES OF ANY FUND; OR WITHDRAW ALL OR ANY PART OF THE OFFERING MADE
BY THIS PROSPECTUS. TO PROTECT THE INTERESTS OF INVESTORS, EACH FUND AND THE
DISTRIBUTOR MAY REJECT ANY ORDER CONSIDERED MARKET-TIMING ACTIVITY.
THE FUND RESERVES THE RIGHT TO TERMINATE OR MODIFY THE EXCHANGE PRIVILEGE WITH
60 DAYS' WRITTEN NOTICE.
OTHER CALVERT GROUP FEATURES
CALVERT INFORMATION NETWORK
FOR 24 HOUR PERFORMANCE AND ACCOUNT INFORMATION CALL
800-368-2745 OR VISIT WWW.CALVERT.COM
YOU CAN OBTAIN CURRENT PERFORMANCE AND PRICING INFORMATION, VERIFY ACCOUNT
BALANCES, AND AUTHORIZE CERTAIN TRANSACTIONS WITH THE CONVENIENCE OF ONE
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 CONFIR-
<PAGE>
MATION STATEMENT IS SENT FOR MOST TRANSACTIONS; PLEASE REVIEW THIS STATEMENT AND
VERIFY THE ACCURACY OF YOUR TRANSACTION IMMEDIATELY.
ELECTRONIC DELIVERY OF PROSPECTUSES AND SHAREHOLDER REPORTS
YOU MAY REQUEST TO RECEIVE ELECTRONIC DELIVERY OF PROSPECTUSES AND ANNUAL AND
SEMI-ANNUAL REPORTS.
COMBINED GENERAL MAILINGS (HOUSEHOLDING)
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.
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 MAILED OR WIRED 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.
<PAGE>
WRITTEN REQUESTS
CALVERT GROUP, P.O. BOX 219544, KANSAS CITY, MO 64121-9544
YOUR LETTER SHOULD INCLUDE YOUR ACCOUNT NUMBER AND FUND AND THE NUMBER OF SHARES
OR THE DOLLAR AMOUNT YOU ARE REDEEMING. PLEASE PROVIDE A DAYTIME TELEPHONE
NUMBER, IF POSSIBLE, FOR US TO CALL IF WE HAVE QUESTIONS. IF THE MONEY IS BEING
SENT TO A NEW BANK, PERSON, OR ADDRESS OTHER THAN THE ADDRESS OF RECORD, YOUR
LETTER MUST BE SIGNATURE GUARANTEED.
CORPORATIONS AND ASSOCIATIONS
YOUR LETTER OF INSTRUCTION AND CORPORATE RESOLUTION SHOULD BE SIGNED BY
PERSON(S) AUTHORIZED TO ACT ON THE ACCOUNT, ACCOMPANIED BY SIGNATURE
GUARANTEE(S).
FINANCIAL HIGHLIGHTS
THE FINANCIAL HIGHLIGHTS TABLE IS INTENDED TO HELP YOU UNDERSTAND THE FUND'S
FINANCIAL PERFORMANCE FOR THE PAST FIVE (5) FISCAL YEARS (OR IF SHORTER, THE
PERIOD OF THE FUND'S OPERATIONS). THE FUND'S FISCAL YEAR END IS DECEMBER 31.
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.
PERIODS ENDED
DECEMBER 31, DECEMBER 31,
INSTITUTIONAL CLASS SHARES 1999 1998^
NET ASSET VALUE, BEGINNING $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .047 .015
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.047) (.015)
NET ASSET VALUE, ENDING $1.00 $1.00
TOTAL RETURN 4.84% 1.49%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME 4.72% 4.95%(A)
TOTAL EXPENSES .50% .43%(A)
EXPENSES BEFORE OFFSETS .38% .34%(A)
NET EXPENSES .37% .32%(A)
NET ASSETS, ENDING (IN THOUSANDS) $19,679 $20,128
(A) ANNUALIZED
^ FROM SEPTEMBER 16, 1998 INCEPTION.
<PAGE>
TO OPEN AN ACCOUNT:
800-317-2274
SERVICE FOR EXISTING ACCOUNTS:
800-317-2274
TDD FOR HEARING-IMPAIRED:
800-541 1524
BRANCH OFFICE:
4550 MONTGOMERY AVENUE
SUITE 1000N
BETHESDA, MD 20814
REGISTERED, CERTIFIED OR
OVERNIGHT MAIL:
CALVERT GROUP
C/O INSTITUTIONAL MARKETING GROUP
4550 MONTGOMERY AVENUE
SUITE 1000N
BETHESDA, MD 20814
CALVERT GROUP WEB-SITE
WWW.CALVERT.COM/INSTITUTIONAL
PRINCIPAL UNDERWRITER
CALVERT DISTRIBUTORS, INC.
4550 MONTGOMERY AVENUE
SUITE 1000N
BETHESDA, MD 20814
<PAGE>
FOR INVESTORS WHO WANT MORE INFORMATION ABOUT THE FUND, THE FOLLOWING DOCUMENTS
ARE AVAILABLE FREE UPON REQUEST:
ANNUAL/SEMI-ANNUAL REPORTS: ADDITIONAL INFORMATION ABOUT THE FUND'S INVESTMENTS
IS AVAILABLE IN THE FUND'S ANNUAL AND SEMI-ANNUAL REPORTS TO SHAREHOLDERS. IN
THE FUND'S ANNUAL REPORT, YOU WILL FIND A DISCUSSION OF THE MARKET CONDITIONS
AND INVESTMENT STRATEGIES THAT SIGNIFICANTLY AFFECTED THE FUND'S PERFORMANCE
DURING ITS LAST FISCAL YEAR.
STATEMENT OF ADDITIONAL INFORMATION (SAI): THE SAI FOR THE FUND PROVIDES MORE
DETAILED INFORMATION ABOUT THE FUND AND IS INCORPORATED INTO THIS PROSPECTUS BY
REFERENCE.
YOU CAN GET FREE COPIES OF REPORTS AND SAIS, REQUEST OTHER INFORMATION AND
DISCUSS YOUR QUESTIONS ABOUT THE FUND BY CONTACTING YOUR BROKER, OR THE FUND AT:
CALVERT GROUP, LTD.
4550 MONTGOMERY AVE, SUITE 1000N
BETHESDA, MD 20814
TELEPHONE: 1-800-368-2745
CALVERT GROUP WEB-SITE
WWW.CALVERT.COM
YOU CAN REVIEW THE FUND'S REPORTS AND SAIS AT THE PUBLIC REFERENCE ROOM OF THE
SECURITIES AND EXCHANGE COMMISSION. YOU CAN GET TEXT ONLY COPIES:
- - FOR A FEE, BY WRITING TO OR CALLING THE PUBLIC REFERENCE 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)
