PROSPECTUS -- January 31, 1995 As revised September 30, 1995
MONEY MANAGEMENT PLUS
TAX-FREE PORTFOLIO
Calvert Tax-Free Reserves Money Market Portfolio Class MMP Shares
4550 Montgomery Avenue, Bethesda, Maryland 20814
INVESTMENT OBJECTIVE AND POLICIES
MONEY MANAGEMENT PLUS TAX-FREE PORTFOLIO (the "Fund") is a money market fund
which seeks to obtain the highest level of current income, consistent with
preservation of capital and liquidity, that is available through investments in
specified money market instruments. It is a class of Calvert Tax-Free Reserves
Money Market Portfolio ("CTFR Money Market"). The Fund invests in high quality
short-term municipal obligations, and its dividends are substantially exempt
from federal income tax. The Fund's assets are invested in securities maturing
in one year or less, with an average weighted maturity of 90 days or less. The
Fund seeks to maintain a constant net asset value of $1.00 per share. An
investment in the Fund is neither insured nor guaranteed by the U.S. Government.
There can be no assurance that the Fund will be successful in maintaining a
constant net asset value of $1.00 per share.
TO OPEN AN ACCOUNT
Call your broker, or complete and return the enclosed Account Application.
Minimum investment is $2,000.
ABOUT THIS PROSPECTUS
Please read this Prospectus before investing. It is designed to provide you with
information you ought to know before investing and to help you decide if the
Fund's goals match your own. Keep this document for future reference.
A Statement of Additional Information (dated January 31, 1995, as revised
September 30, 1995) for the Fund has been filed with the Securities and Exchange
Commission and is incorporated by reference. This free Statement is available
upon request from the Fund: 800-368-2748.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE FEDERAL OR
ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS
PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
SHARES OF THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR ENDORSED
BY, ANY BANK, AND ARE NOT FEDERALLY INSURED BY THE FDIC, THE FEDERAL RESERVE
BOARD, OR ANY OTHER AGENCY.
<TABLE>
<CAPTION>
FUND EXPENSES
<S> <C>
A. Shareholder Transaction Expenses
Sales Load on Purchases None
Sales Load on Reinvested Dividends None
Deferred Sales Load None
Redemption Fees None
Exchange Fee None
B. Annual Fund Operating Expenses - Fiscal
Year 19941<F1>
(as a percentage of net assets)
Management Fees 0.46%
Rule 12b-1 Fees 0.35%
Other Expenses 0.16%
Total Fund Operating Expenses 0.97%
<FN>
<F1>The expense ratio has been estimated for expenses anticipated in the
current fiscal year.
</FN>
</TABLE>
C. Example: You would pay the following expenses on a $1,000 investment,
assuming (1) 5% annual return and (2) redemption at the end of each period:
1 Year 3 Years
Tax-Free Portfolio $10 $31
The information in the above fee table and example relates only to the Class MMP
Shares. CTFR Money Market also offers another class of shares, Class O shares.
Class O shares and Class MMP shares of each fund are the same except that Class
O shares are not subject to any Rule 12b-1 Fees.
Explanation of Table: The purpose of the table is to assist you in understanding
the various costs and expenses that an investor in the Fund may bear directly
(shareholder transaction costs) or indirectly (annual fund operating expenses).
A. Shareholder Transaction Expenses are charges you pay when you buy or sell
shares. If you request a wire redemption of less than $1,000, you will be
charged a $5 wire fee.
B. Annual Fund Operating Expenses have been estimated to reflect expenses
anticipated in fiscal 1995 for the Fund. Management Fees are paid by the Fund to
Calvert Asset Management Company, Inc. ("Advisor") for managing its investments
and business affairs. Management Fees also includes an administrative service
fee paid to Calvert Administrative Services Company. The Fund incurs Other
Expenses for maintaining shareholder records, furnishing shareholder statements
and reports, and other services. Management Fees and Other Expenses have already
been reflected in the Fund's yield and are not charged directly to individual
shareholder accounts. Please refer to the section "Management of the Fund" for
further information.
The Fund's Rule 12b-1 fees include an asset-based sales charge. It is possible
in theory that long-term shareholders in the Fund could pay more than the
economic equivalent of the maximum front-end sales charge permitted by rules of
the National Association of Securities Dealers, Inc.; however, this is unlikely
because these are money market funds, and have no front-end sales charge.
C. Example of Expenses. The example, which is hypothetical, should not be
considered a representation of past or future expenses. Actual expenses may be
higher or lower than those shown.
INVESTMENT OBJECTIVE AND POLICIES
Investment Objective: The Fund seeks to earn the highest level of current
income, consistent with preservation of capital and liquidity.
The Fund is a diversified money market fund whose objective is to earn the
highest level of current income, consistent with preservation of capital and
liquidity, that is available through investment in specified money market
instruments. Assets are invested in securities maturing in one year or less, and
the Fund maintains an average weighted maturity of 90 days or less.
The Fund invests primarily in municipal obligations whose interest is exempt
from federal income tax.
The Fund invests in fixed and variable rate municipal obligations whose interest
is exempt from federal income tax and which are of high quality. See "Dividends
and Taxes" below for information concerning the federal alternative minimum tax
for particular classes of investors. Its investments must be rated within the
two highest credit ratings categories or, if unrated, are determined by the
Advisor to be of comparable quality. The quality may be determined by a
commercial credit rating service, such as Moody's Investors Service, Inc., or
Standard & Poor's Corporation or, in the case of any instrument that is not
rated, of comparable quality as determined by the Advisor. There is no
limitation on the percentage of the Fund's assets which may be invested in
unrated obligations; such obligations, because they lack ratings, may be less
liquid than rated obligations of comparable quality. For more information on
ratings, see the Statement of Additional Information.
When-Issued Purchases
Purchasing obligations for future delivery or on a "when-issued" basis may
increase the Fund's overall investment exposure and involves a risk of loss if
the value of the securities declines prior to the settlement date. The
transactions are fully secured at all times.
Variable Rate Obligations
The Fund may invest in variable and floating rate obligations. Variable rate
obligations have a yield which is adjusted periodically based upon changes in
the level of prevailing interest rates. Floating rate obligations have an
interest rate fixed to a known lending rate, such as the prime rate, and are
automatically adjusted when that rate changes. Variable and floating rate
obligations lessen the capital fluctuations usually inherent in fixed income
investments, to diminish the risk of capital depreciation of Fund investments
and Fund shares; but this also means that should interest rates decline, the
yield of the Fund will decline and the Fund would not have as many opportunities
for capital appreciation of its investments.
Demand Notes and Other Investments
The Fund may invest in floating rate and variable rate demand notes. Demand
notes provide that the holder may demand payment of the note at its par value
plus accrued interest by giving notice to the issuer. To ensure the ability of
the issuer to make payment upon such demand, the note may be supported by an
unconditional bank letter of credit.
The Fund may invest in structured money market instruments. In all cases, it
invests only in high-quality instruments (rated in one of the two highest rating
categories, or if unrated, of comparable credit quality) that meet the
requirements of SEC Rule 2a-7 regarding credit quality and maturity. See the
Statement of Additional Information.
Temporary Taxable Investments
From time to time for liquidity purposes or pending the investment of the
proceeds of the sale of its shares, the Fund may invest in and derive up to 20%
of its income from taxable short-term money market type investments. Interest
earned from such taxable investments will be taxable to you as ordinary income
unless you are otherwise exempt from taxation.
Other Policies
The Fund has adopted certain fundamental investment restrictions which are
discussed in detail in the Statement of Additional Information. Unless
specifically noted otherwise, the investment objective, policies and
restrictions of the Fund are fundamental and may not be changed without
shareholder approval. There can be no assurance that the Fund will be successful
in meeting its investment objective.
YIELD
Yield refers to income generated by an investment over a period of time.
From time to time, the Fund may advertise "yield" and "effective yield." Yield
figures are based on historical earnings and are not intended to indicate future
performance. The "yield" of a Fund refers to the actual income generated by an
investment in the Fund over a particular base period, stated in the
advertisement. If the base period is less than one year, the yield will be
"annualized." That is, the amount of income generated by the investment during
the base period is assumed to be generated over a one-year period and is shown
as a percentage of the investment. The "effective yield" is calculated
similarly, but, when annualized, the income earned by an investment in the Fund
is assumed to be reinvested. The "effective yield" will be slightly higher than
the "yield" because of the compounding effect of this assumed reinvestment.
"Tax Equivalent Yield"
The Fund may also advertise its "tax equivalent yield." The tax equivalent yield
is the yield an investor would be required to obtain from taxable investments to
equal the Fund's yield, all or a portion of which may be exempt from federal
income taxes. The tax equivalent yield is computed by taking the portion of the
Fund's effective yield by a factor based upon a stated income tax rate, then
adding the portion of the yield that is not exempt from regular federal income
tax. The factor which is used to calculate the tax equivalent yield is the
reciprocal of the difference between 1 and the applicable income tax rate, which
will be stated in the advertisement.
MANAGEMENT OF THE FUND
The Board of Trustees supervises the activities and reviews its contracts with
companies that provide the Fund with services.
The Fund is a class of Calvert Tax-Free Reserves Money Market Portfolio, a
series of Calvert Tax-Free Reserves, a Massachusetts business trust organized on
October 20, 1980. The original class (Class O) and the Class MMP shares
represent interests in the same portfolio of investments and are identical in
all respects, except: (a) the Distribution Plan expenses are payable only by the
MMP shares; (b) the classes may have different transfer agency fees; (c) postage
and delivery, printing and stationery expenses will be separately allocated; (d)
the classes will have different dividend rates due solely to the effects of (a)
through (c) above; and (e) only the MMP shares may vote on matters which pertain
to the Distribution Plan.
The Fund is an open-end diversified management investment company. It is not
required to hold annual shareholder meetings, but special meetings may be called
for certain purposes such as electing Trustees, changing fundamental policies,
or approving a management contract. As a shareholder, you receive one vote for
each share of the Fund you own. For matters affecting only one class, only
shares of that class are entitled to vote.
Calvert Group is one of the largest investment management firms in the
Washington, D.C. area.
Calvert Group, Ltd., parent of the Fund's investment advisor, transfer agent,
and distributor, is a subsidiary of Acacia Mutual Life Insurance Company of
Washington, D.C. Calvert Group is one of the largest investment management firms
in the Washington, D.C. area. Calvert Group, Ltd. and its subsidiaries are
located at 4550 Montgomery Avenue, Suite 1000N, Bethesda, Maryland 20814. As of
December 31, 1994, Calvert Group managed and administered assets in excess of
$4.2 billion and more than 200,000 shareholder and depositor accounts.
Calvert Asset Management serves as Advisor to the Fund.
Calvert Asset Management Company, Inc. (the "Advisor") is the Fund's investment
advisor. The Advisor provides the Fund with investment supervision and
management; administrative services and office space; furnishes executive and
other personnel; and pays the salaries and fees of all Trustees who are
affiliated persons of the Advisor. The Advisor may also assume and pay certain
advertising and promotional expenses of the Fund and reserves the right to
compensate broker-dealers in return for their promotional or administrative
services. The Advisor has agreed to limit the Fund's expenses to the most
restrictive state limitation in effect.
The Advisor receives a fee based on a percentage of the Fund's assets.
The Advisor is entitled, pursuant to the Investment Advisory Agreement, to
receive an annual advisory fee of 0.50% of the Fund's average daily net assets.
Calvert Administrative Services Company provides administrative services to the
Fund.
Calvert Administrative Services Company ("CASC"), an affiliate of the Advisor,
provides certain administrative services necessary to the conduct of its
affairs, including the preparation of regulatory filings and shareholder
reports, the daily determination of its net asset value per share and dividends,
and the maintenance of its portfolio and general accounting records. CASC
receives a total fee from Calvert Tax-Free Reserves of $200,000 per year for
providing such services, allocated among its several portfolios.
Calvert Distributors, Inc. serves as underwriter to market the Fund's shares.
Calvert Distributors, Inc. ("CDI") is the Fund's principal underwriter and
distributor. Under the terms of its underwriting agreement with the Fund, CDI
markets and distributes the Fund's shares and is responsible for payment of
compensation and service fees to broker-dealers, banks, and financial services
firms, preparation of advertising and sales literature, and printing and mailing
of prospectuses to prospective investors.
The Fund may pay distribution and servicing expenses pursuant to its Class MMP
Distribution Plan.
Pursuant to Rule 12b-1 under the Investment Company Act of 1940, the Fund has
adopted a Distribution Plan for its Class MMP Shares only which permits it to
pay certain expenses associated with the distribution of its shares. Amounts
paid by the Fund to the Distributor under the Distribution Plan are used to pay
dealers and other selling firms dealer-paid quarterly compensation at an annual
rate of up to 0.40% of the average daily net assets of accounts the respective
firms maintain in the Fund. They are also used to pay dealers and others,
including the Distributor's salespersons who service accounts, service fees at
an annual rate of up to 0.25% of such assets, and to pay CDI for its marketing
and distribution expenses, preparation of advertising and sales literature,
printing and mailing of prospectuses to prospective investors. The Distribution
Plan expenses may not annually exceed 0.35% of the Class MMP average daily net
assets.
CDI may also pay additional concessions, including non-cash promotional
incentives, such as merchandise or trips, to dealers employing registered
representatives who sell a minimum dollar amount of shares of the Fund and/or
shares of other Funds underwritten by CDI. CDI may make expense reimbursements
for special training of a dealer's registered representatives, advertising or
equipment, or to defray the expenses of sales contests. CDI may receive
reimbursement of eligible marketing and distribution expenses from the Fund's
Rule 12b-1 Distribution Plan. Salespersons or any other person entitled to
receive compensation for selling shares may receive different compensation with
respect to one particular class of shares over another.
The Distribution Plan may be terminated at any time by vote of the Independent
Trustees or by vote of a majority of the outstanding voting shares of the Fund.
The transfer agent keeps your account records.
Calvert Shareholder Services, Inc. is the Fund's transfer, dividend disbursing
and shareholder servicing agent.
SHAREHOLDER GUIDE
Opening An Account
You can buy shares of the Fund in several ways which are described here and in
the chart on page.
An account application accompanies this prospectus. A completed and signed
application is required for each new account you open, regardless of the method
you choose for making your initial investment. Additional forms may be required
from corporations, associations, and certain fiduciaries. If you have any
questions or need extra applications, call your broker, or Calvert Group at
800-368-2748.
Share Price
The Fund's shares are sold without a sales charge. The price of one share is its
"net asset value," or NAV. NAV is computed by adding the value of the Fund's
investments plus cash and other assets, deducting liabilities and then dividing
the result by the number of shares outstanding. The NAV is calculated at the
close of each business day, which coincides with the closing of the regular
session of the New York Stock Exchange (normally 4:00 p.m. Eastern time). The
Fund is open for business each day the New York Stock Exchange is open. The
Fund's securities are valued according to the "amortized cost" method, which is
intended to stabilize the NAV at $1.00 per share.
All purchases of Fund shares will be confirmed and credited to your account in
full and fractional shares (rounded to the nearest 1/100 of a share). The Fund
may send monthly statements in lieu of immediate confirmations of purchases and
redemptions.
HOW TO BUY SHARES
Method New Accounts Additional
Investments
By Mail $2,000 minimum $250 minimum
Please make your check Please make your check
payable to the Fund and payable to the Fund and
mail it with your mail it with your
application to: investment slip to:
Calvert Group Calvert Group
P.O. Box 419544 P.O. Box 419739
Kansas City, MO 64141-6544 Kansas City, MO 64141-6739
By Registered, Certified, or Overnight Mail: Calvert Group
c/o NFDS, 6th Floor
1004 Baltimore
Kansas City, MO 64105-1807
Through Your Broker $2,000 minimum $250 minimum
FOR ALL OPTIONS BELOW, PLEASE CALL YOUR BROKER OR CALVERT GROUP AT 800-368-2745
By Exchange $2,000 minimum $250 minimum
(From your account in another Calvert Group Fund)
When opening an account by exchange, your new account must be established with
the same name(s), address and taxpayer identification number as your existing
Calvert account.
By Bank Wire $2,000 minimum $250 minimum
By Calvert Money Not Available for $50 minimum
Controller* Initial Investment
*Please allow sufficient time for Calvert Group to process your initial request
for this service, normally 10 business days. The maximum transaction amount is
$300,000, and your purchase request must be received by 4:00 p.m. Eastern time.
WHEN YOUR ACCOUNT WILL BE CREDITED
Before you buy shares, please read the following information to make sure your
investment is accepted and credited properly.
Your purchase will be processed at the net asset value calculated after your
order is received and accepted. The Fund attempts to maintain a constant net
asset value of $1.00 per share. If your purchase is made by wire and is received
by 12:30 p.m. (Eastern time), your account will be credited and begin earning
dividends on the day of receipt. Exchanges are credited the day the request is
received by mail or telephone, and begin earning dividends the next business
day. If your wire purchase is received after 12:30 p.m. Eastern time, it will be
credited the same business day, and begin earning dividends the next business
day. If the purchase is by check, and is received by 4:00 p.m., it will be
credited that business day, and begin earning dividends the next business day.
All of your purchases must be made in U.S. dollars and checks must be drawn on
U.S. banks. No cash will be accepted. The Fund reserves the right to suspend the
offering of shares for a period of time or to reject any specific purchase
order. If your check does not clear, your purchase will be canceled and you will
be charged a $10 fee plus costs incurred. When you purchase by check or with
Calvert Money Controller, those funds will be on hold for up to 10 business days
from the date of receipt. During that period, redemptions against those funds
(including drafts) will not be honored. To avoid this collection period, you can
wire federal funds from your bank, which may charge you a fee.
EXCHANGES
You may exchange shares of the Fund for shares of other Calvert Group Funds.
If your investment goals change, the Calvert Group Family of Funds has a variety
of investment alternatives that includes common stock funds, tax-exempt and
corporate bond funds, and money market funds. The exchange privilege is a
convenient way to buy shares in other Calvert Group Funds in order to respond to
changes in your goals or in market conditions. Before you make an exchange from
a Fund or Portfolio, please note the following:
Call your broker or a Calvert representative for information and a
prospectus for any of Calvert's other Funds registered in your state. Read
the prospectus of the Fund or Portfolio into which you want to exchange for
relevant information, including class offerings.
Each exchange represents the sale of shares of one Fund and the purchase of
shares of another.
Complete and sign an application for an account in that Fund or Portfolio,
taking care to register your new account in the same name and taxpayer
identification number as your existing Calvert account(s). Exchange
instructions may then be given by telephone if telephone redemptions have
been authorized and the shares are not in certificate form.
Shares on which you have already paid a sales charge or shares acquired by
reinvestment of dividends or distributions at Calvert Group may be
exchanged into another Fund at no additional charge.
The Fund reserves the right to terminate or modify the exchange privilege
with 60 days' written notice.
OTHER CALVERT GROUP SERVICES
Calvert Information Network
24 hour performance and prices
Calvert Group has a round-the-clock telephone service that lets existing
customers use a push button phone to obtain prices, performance
information, account balances, and authorize certain transactions.
Calvert Money Controller
Calvert Money Controller eliminates the delay of mailing a check or the expense
of wiring funds. You can request this free service on your application.
This service allows you to authorize electronic transfers of money to purchase
or sell shares. You use Calvert Money Controller like an "electronic check" to
move money ($50 to $300,000) between your bank account and your Calvert Group
account with one phone call. Allow one or two business days after the call for
the transfer to take place; for money recently invested, allow normal check
clearing time (up to 10 business days) before redemption proceeds are sent to
your bank.
You may also arrange systematic monthly or quarterly investments (minimum $50)
into your Calvert Group account. After you give us proper authorization, your
bank account will be debited to purchase Fund shares. A debit entry will appear
on your bank statement. If you would like to make arrangements for systematic
monthly or quarterly redemptions from your Calvert Group account, call your
broker or Calvert for a Money Controller Application.
Telephone Transactions
Calvert may record all telephone calls.
You may purchase, redeem, or exchange shares, wire funds and use Calvert Money
Controller by telephone if you have pre-authorized service instructions. You
automatically have telephone privileges unless you elect otherwise. The Fund,
the transfer agent and their affiliates are not liable for acting in good faith
on telephone instructions relating to your account, so long as they follow
reasonable procedures to determine that the telephone instructions are genuine.
Such procedures may include recording the telephone calls and requiring some
form of personal identification. You should verify the accuracy of telephone
transactions immediately upon receipt of your confirmation statement.
Complete the "Option" sections of the application for the easiest way to
establish services.
The easiest way to establish optional services on your Calvert Group account is
to select the options you desire when you complete your account application. If
you wish to add other options later, you may have to provide us with additional
information and a signature guarantee. Please call your broker or Calvert
Investor Relations at 800-368-2745 for further assistance. For our mutual
protection, we may require a signature guarantee on certain written transaction
requests. A signature guarantee verifies the authenticity of your signature, and
may be obtained from any bank, savings and loan association, credit union, trust
company, broker-dealer firm or member of a domestic stock exchange. A signature
guarantee cannot be provided by a notary public.
Householding of General Mailings
Householding reduces Fund expenses and saves paper and trees for the
environment.
If you have multiple accounts with Calvert, you may receive combined mailings of
some shareholder information, such as semi-annual and annual reports. Please
contact Calvert Investor Relations at 800-368-2745 to receive additional copies
of information.
Special Services and Charges
The Fund pays for shareholder services but not for special services that are
required by a few shareholders, such as a request for a historical transcript of
an account. You may be required to pay a fee for these special services.
If you are purchasing shares of the Fund through a program of services offered
by a securities dealer or financial institution, you should read the program
materials in conjunction with this Prospectus. Certain features of the Fund may
be modified in these programs, and administrative charges may be imposed by the
broker-dealer for the services rendered.
Consolidated Asset Account ("CAA")
Certain brokerage firms may offer their customers CAA, a special cash management
service linked to the Fund. CAA customers may have free-credit cash balances at
their brokerage firm account automatically invested in Fund shares on a daily
basis. Participating brokerage firms may charge their customers a fee for the
CAA program and may establish a higher minimum balance. Details of CAA,
including the fee charged, are available from participating brokerage firms.
This prospectus should be read together with such firm's materials regarding
these fees and services.
SELLING YOUR SHARES
You may redeem all or a portion of your shares on any business day. Your shares
will be redeemed at the next net asset value calculated after your redemption
request is received and accepted. See the chart below for specific requirements
necessary to make sure your redemption request is acceptable. Remember that the
Fund may hold payment on the redemption of your shares until it is reasonably
satisfied that investments made by check or by Calvert Money Controller have
been collected (normally up to 10 business days).
Redemption Requirements To Remember
To ensure acceptance of your redemption request, please follow the procedures
described here and below.
Once your shares are redeemed, the proceeds will normally be sent to you on the
next business day, but if making immediate payment could adversely affect the
Fund, it may take up to seven (7) days. Calvert Money Controller redemptions
generally will be credited to your bank account on the first or second business
day after your phone call. When the New York Stock Exchange is closed (or when
trading is restricted) for any reason other than its customary weekend or
holiday closings, or under any emergency circumstances as determined by the
Securities and Exchange Commission, redemptions may be suspended or payment
dates postponed.
If you sell shares by telephone or written request, you will receive dividends
through the date the request is received and processed. If you write a draft to
sell shares, the shares will earn dividends until the draft is presented to the
Fund to be paid.
Minimum account balance is $1,000.
Please maintain a balance in your account of at least $1,000. If, due to
redemptions, the account falls below $1,000, or you fail to invest at least
$1,000, it may be closed and the proceeds mailed to you at the address of
record. You will be given notice that your account will be closed after 30 days
unless you make an additional investment to increase your account balance to the
$1,000 minimum.
HOW TO SELL YOUR SHARES
Draftwriting
You may redeem shares in your account by writing a draft for at least $250. If
you complete and return a signature card for Draftwriting, the Fund will mail
bank drafts to you, printed with your name and address. Generally, there is no
charge to you for the maintenance of this service or the clearance of drafts,
but the Fund reserves the right to charge a service fee for drafts returned for
insufficient funds. As a service to shareholders, the Fund may automatically
transfer the dollar amount necessary to cover drafts you have written on the
Fund to your Fund account from any other of your identically registered accounts
in Calvert money market funds or Calvert Insured Plus. The Fund may charge a fee
for this service.
By Mail To:
Calvert Group
P.O. Box 419544
Kansas City, MO
64141-6544
You may redeem available shares from your account at any time by sending a
letter of instruction, including your name, account and Fund number, the number
of shares or dollar amount, and where you want the money to be sent. Additional
requirements, below, may apply to your account. The letter of instruction must
be signed by all required authorized signers. If you want the money to be wired
to a bank not previously authorized, then a voided bank check must be enclosed
with your letter. If you do not have a voided check or if you would like funds
sent to a different address or another person, your letter must be signature
guaranteed.
Type of Registration Requirements
Corporations, Associations Letter of instruction and a corporate
resolution, signed by person(s) authorized
to act on the account, accompanied by
signature guarantee(s).
Trusts Letter of instruction signed by the
Trustee(s) (as Trustee), with a signature
guarantee. (If the Trustee's name is not
registered on your account, provide a copy
of the trust document, certified within
the last 60 days.)
By Telephone
Please call 800-368-2745. You may redeem shares from your account by telephone
and have your money mailed to your address of record or wired to an address or
bank you have previously authorized. A charge of $5 is imposed on wire transfers
of less than $1,000. See "Telephone Transactions" on page __.
Calvert Money Controller
Please allow sufficient time for Calvert Group to process your initial request
for this service (normally 10 business days). You may also authorize automatic
fixed amount redemptions by Calvert Money Controller. All requests must be
received by 4:00 p.m. Eastern time. Accounts cannot be closed by this service.
Exchange to Another Calvert Group Fund
You must meet the minimum investment requirement of the other Calvert Group Fund
or Portfolio. You can only exchange between accounts with identical names,
addresses and taxpayer identification number, unless previously authorized with
a signature-guaranteed letter.
Systematic Check Redemptions
If you maintain an account with a balance of $10,000 or more, you may have up to
two (2) redemption checks for a fixed amount sent to you on the 15th of each
month, simply by sending a letter with all information, including your account
number and the dollar amount ($100 minimum). If you would like a regular check
mailed to another person or place, your letter must be signature guaranteed.
Through your Broker
If your account is held in your broker's name ("street name"), you should
contact your broker directly to transfer, exchange or redeem shares.
DIVIDENDS AND TAXES
Each year, the Fund distributes substantially all of its net investment income
to shareholders.
Dividends from the Fund's net investment income are declared daily and paid
monthly. Net investment income consists of interest income, net short-term
capital gains, if any, and dividends declared and paid on investments, less
expenses.
Dividend payment options
Dividends and any distributions are automatically reinvested in additional
shares of the same Fund, unless you elect to have the dividends of $10 or more
paid in cash (by check or by Calvert Money Controller). Dividends and
distributions from the Fund may also be invested in shares of any other Calvert
Group Fund or Portfolio, at no additional sales charge. You must notify the Fund
in writing to change your payment options. If you elect to have dividends and/or
distributions paid in cash, and the U.S. Postal Service cannot deliver the
check, or if it remains uncashed for six months, it, as well as future dividends
and distributions, will be reinvested in additional shares.
Federal Taxes
Dividends derived from interest on municipal obligations held in the Fund
constitute exempt-interest dividends which are not subject to federal income
tax. However, dividends which are from taxable interest and any distributions of
short-term capital gain are taxable to you as ordinary income. If the Fund makes
any distributions of long-term capital gains, then these are taxable to you as
long-term capital gains, regardless of how long you have owned Fund shares.
Dividends attributable to interest on certain private activity bonds must be
included in federal alternative minimum tax for individuals and for
corporations.
If any taxable income or gains are paid, in January, the Fund will mail you Form
1099-DIV, indicating the federal tax status of dividends paid to you during the
past year.
Other Tax Information
You may be subject to state or local taxes on your investment, depending on the
laws in your area. A letter will be mailed to you in January, detailing the
percentage invested in your state the previous tax year. Such dividends may be
exempt from certain state taxes.
Taxpayer Identification Number
If we do not have your correct Social Security or Taxpayer Identification Number
("TIN") and a signed certified application or Form W-9, Federal law requires the
Fund to withhold 31% of your reportable 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.
================================================================================
To Open an Account: Prospectus
800-368-2748 January 31, 1995
As Revised September 30, 1995
Performance and Prices:
Calvert Information Network MONEY MANAGEMENT PLUS
24 hours, 7 days a week TAX-FREE PORTFOLIO
800-368-2745 (Calvert Tax-Free Reserves
Money Market Class MMP)
Service for Existing Account:
Shareholders 800-368-2745
Brokers 800-368-2746
TDD for Hearing Impaired:
800-541-1524
Registered, Certified or Overnight Mail:
Calvert Group
c/o NFDS, 6th Floor
1004 Baltimore
Kansas City, MO 64105
PRINCIPAL UNDERWRITER
Calvert Distributors, Inc.
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
Table of Contents
Fund Expenses
Financial Highlights
Investment Objectives and Policies
Yield
Management of the Fund
SHAREHOLDER GUIDE:
How to Buy Shares
When Your Account Will Be Credited
Exchanges
Other Calvert Group Services
Selling Your Shares
How to Sell Your Shares
Dividends and Taxes
- --------
PROSPECTUS --
January 31, 1995
MONEY MANAGEMENT PLUS
Prime Portfolio
Government Portfolio
Calvert Tax-Free Reserves Money Management Plus Tax-Free Portfolio
4550 Montgomery Avenue, Bethesda, Maryland 20814
INVESTMENT OBJECTIVE AND POLICIES
MONEY MANAGEMENT PLUS (the "Fund") is a money market fund which seeks to obtain
the highest level of current income, consistent with preservation of capital and
liquidity, that is available through investments in specified money market
instruments. Each Portfolio's assets are invested in securities maturing in one
year or less (13 months for the Prime Portfolio), with an average weighted
maturity of 90 days or less. The Fund seeks to maintain a constant net asset
value of $1.00 per share for each Portfolio. An investment in the Fund is
neither insured nor guaranteed by the U.S. Government. There can be no assurance
that the Fund will be successful in maintaining a constant net asset value of
$1.00 per share for each Portfolio.
CHOICE OF PORTFOLIOS
Prime Portfolio: Invests in certificates of deposit of major banks, prime
commercial paper and high-grade short-term corporate obligations, and short-term
U.S. Government and agency securities.
Government Portfolio: Invests in short-term securities issued or insured by the
U.S. Treasury, or by agencies or instrumentalities of the U.S. Government which
are backed by the full faith and credit of the U.S. Government, including such
securities subject to repurchase agreements with recognized securities dealers.
Tax-Free Portfolio: Invests in high quality short-term municipal obligations.
Its dividends are substantially exempt from federal income tax.
TO OPEN AN ACCOUNT
Call your broker, or complete and return the enclosed Account Application.
Minimum investment is $2,000 per Portfolio.
ABOUT THIS PROSPECTUS
Please read this Prospectus before investing. It is designed to provide you with
information you ought to know before investing and to help you decide if the
Fund's goals match your own. Keep this document for future reference.
A Statement of Additional Information (dated January 31, 1995) for the Fund has
been filed with the Securities and Exchange Commission and is incorporated by
reference. This free Statement is available upon request from the Fund:
800-368-2748.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE FEDERAL OR
ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS
PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
SHARES OF THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR ENDORSED
BY, ANY BANK, AND ARE NOT FEDERALLY INSURED BY THE FDIC, THE FEDERAL RESERVE
BOARD, OR ANY OTHER AGENCY.
================================================================================
<TABLE>
<CAPTION>
FUND EXPENSES
Government Prime
Portfolio Portfolio
<S> <C> <C>
A. Shareholder Transaction Expenses
Sales Load on Purchases None None
Sales Load on Reinvested Dividends None None
Deferred Sales Load None None
Redemption Fees None None
Exchange Fee None None
B. Annual Fund Operating Expenses<F1>
(as a percentage of net assets)
Management Fees 0.50% 0.50%
Rule 12b-1 Fees 0.35% 0.35%
Other Expenses 0.37% 0.43%
Total Fund Operating Expenses 1.22% 1.28%
Tax-Free
A. Shareholder Transaction Expenses Portfolio
Sales Load on Purchases None
Sales Load on Reinvested Dividends None
Deferred Sales Load None
Redemption Fees None
Exchange Fee None
B. Annual Fund Operating Expenses<F1>
(as a percentage of net assets)
Management Fees 0.50%
Rule 12b-1 Fees 0.35%
Other Expenses 0.34%
Total Fund Operating Expenses 1.19%
<FN>
<F1>Expense ratios are based on expenses for fiscal year 1994, except that they
have been restated to reflect expenses anticipated in the current fiscal year.
</FN>
</TABLE>
C. Example: You would pay the following expenses on a $1,000 investment,
assuming (1) 5% annual return and (2) redemption at the end of each period:
<TABLE>
<CAPTION>
Portfolios 1 Year 3 Years 5 Years 10 Years
<S> <C> <C> <C> <C>
Government $12 $39 $67 $148
Prime Portfolio $13 $41 $70 $155
Tax-Free Portfolio $12 $38 $65 $144
Explanation of Table: The purpose of the table is to assist you in understanding
the various costs and expenses that an investor in the Fund may bear directly
(shareholder transaction costs) or indirectly (annual fund operating expenses).
</TABLE>
A. Shareholder Transaction Expenses are charges you pay when you buy or sell
shares of the Portfolios. If you request a wire redemption of less than $1,000,
you will be charged a $5 wire fee.
B. Annual Fund Operating Expenses are based on the Portfolios' historical
expenses, and have been restated to reflect expenses anticipated in fiscal 1995.
Management Fees are paid by the Portfolios to Calvert Asset Management Company,
Inc. ("Advisor") for managing their investments and business affairs. Management
Fees for the Tax-Free Portfolio also includes an administrative service fee paid
to Calvert Administrative Services Company. The Portfolios incur Other Expenses
for maintaining shareholder records, furnishing shareholder statements and
reports, and other services. Management Fees and Other Expenses have already
been reflected in the Portfolios' yields and are not charged directly to
individual shareholder accounts. Please refer to the section "Management of the
Fund" for further information.
The Fund's Rule 12b-1 fees include an asset-based sales charge. It is possible
in theory that long-term shareholders in the Fund could pay more than the
economic equivalent of the maximum front-end sales charge permitted by rules of
the National Association of Securities Dealers, Inc.; however, this is unlikely
because these are money market funds, and have no front-end sales charge.
C. Example of Expenses. The example, which is hypothetical, should not be
considered a representation of past or future expenses. Actual expenses may be
higher or lower than those shown.
================================================================================
FINANCIAL HIGHLIGHTS
The following tables provide information about each Portfolio's financial
history. They express the information in terms of a single share outstanding for
the respective Portfolio throughout each period. The tables have been audited by
those independent accountants whose reports are included in the respective
Annual Reports to Shareholders. The tables should be read in conjunction with
the financial statements and their related notes. The current Annual Reports to
Shareholders are incorporated by reference into the Statement of Additional
Information.
<TABLE>
<CAPTION>
Government Portfolio Year Ended September 30,
1994 1993
<S> <C> <C>
Net asset value, beginning of year $1.00 $1.00
Income from investment operations
Net investment income .025 .023
Net realized and unrealized loss on investments
-- --
Total from investment operations .025 .023
Distributions to shareholders
Dividends from net investment income (.025) (.023)
Net asset value, end of year $1.00 $1.00
Total return<F2> 2.56% 2.30%
Ratio of expenses to average net assets 1.12% .77%
Ratio of net income to average net assets 2.45% 2.26%
Net assets, end of year $19,112,301 $24,848,036
Number of shares outstanding at end of year (in
thousands) 19,142 24,881
<FN>
<F2>Total return is not audited for years prior to 1994.
</FN>
</TABLE>
================================================================================
<TABLE>
<CAPTION>
Government Portfolio
1992
<S> <C>
Net asset value, beginning of year $1.00
Income from investment operations
Net investment income .033
Net realized and unrealized loss on investments
--
Total from investment operations .033
Distributions to shareholders
Dividends from net investment income (.033)
Net asset value, end of year $1.00
Total return<F2> 3.34%
Ratio of expenses to average net assets .82%
Ratio of net income to average net assets 3.23%
Net assets, end of year $30,389,225
Number of shares outstanding at end of year (in
thousands) 30,424
<FN>
<F2>Total return is not audited for years prior to 1994.
</FN>
</TABLE>
================================================================================
<TABLE>
<CAPTION>
Government Portfolio Year Ended September 30,
1991 1990
<S> <C> <C>
Net asset value, beginning of year $1.00 $1.00
Income from investment operations
Net investment income .056 .071
Net realized and unrealized loss on investments
-- --
Total from investment operations .056 .071
Distributions to shareholders
Dividends from net investment income (.056) (.071)
Net asset value, end of year $1.00 $1.00
Total return<F3> 5.69% 7.35%
Ratio of expenses to average net assets .84% .95%
Ratio of net income to average net assets 5.56% 7.08%
Net assets, end of year $21,627,804 $25,426,464
Number of shares outstanding at end of year (in
thousands) 21,667 25,460
<FN>
<F3>Total return is not audited for years prior to 1994.
</FN>
</TABLE>
================================================================================
<TABLE>
<CAPTION>
Government Portfolio Year Ended September 30,
1989 1988
<S> <C> <C>
Net asset value, beginning of year $1.00 $1.00
Income from investment operations
Net investment income .079 .064
Net realized and unrealized loss on investments
-- (.002)
Total from investment operations .079 .062
Distributions to shareholders
Dividends from net investment income (.079) (.062)
Net asset value, end of year $1.00 $1.00
Total return<F4> 8.30% 6.54%
Ratio of expenses to average net assets .85% .70%
Ratio of net income to average net assets 7.84% 5.76%
Increase reflected in net income ratio due to
expense reimbursement .03% .35%
Net assets, end of year $25,997,886 $16,155,746
Number of shares outstanding at end of year (in
thousands) 26,029 16,191
<FN>
<F4>Total return is not audited for years prior to 1994.
</FN>
</TABLE>
================================================================================
<TABLE>
<CAPTION>
Government Portfolio
1987
<S> <C>
Net asset value, beginning of year $1.00
Income from investment operations
Net investment income .057
Net realized and unrealized loss on investments
--
Total from investment operations .057
Distributions to shareholders
Dividends from net investment income (.057)
Net asset value, end of year $1.00
Total return<F4> 5.86%
Ratio of expenses to average net assets .60%
Ratio of net income to average net assets 5.53%
Increase reflected in net income ratio due to
expense reimbursement .45%
Net assets, end of year $10,696,378
Number of shares outstanding at end of year (in
thousands) 10,696
<FN>
<F4>Total return is not audited for years prior to 1994.
</FN>
</TABLE>
================================================================================
<TABLE>
<CAPTION>
Government Portfolio Year Ended September 30,
1986 1985
<S> <C> <C>
Net asset value, beginning of year $1.00 $1.00
Income from investment operations
Net investment income .064 .078
Net realized and unrealized loss on investments
-- --
Total from investment operations .064 .078
Distributions to shareholders
Dividends from net investment income (.064) (.078)
Net asset value, end of year $1.00 $1.00
Total return<F5> 5.98% 7.19%
Ratio of expenses to average net assets .82% .82%
Ratio of net income to average net assets 6.17% 7.52%
Increase reflected in net income ratio due to
expense reimbursement .46% .58%
Net assets, end of year $7,748,563 $5,951,083
Number of shares outstanding at end of year (in
thousands) 7,749 5,951
<FN>
<F5>Total return is not audited for years prior to 1994.
</FN>
</TABLE>
================================================================================
<TABLE>
<CAPTION>
Prime Portfolio Year Ended September 30,
1994 1993
<S> <C> <C>
Net asset value, beginning of period $1.00 $1.00
Income from investment operations
Net investment income .028 .025
Distributions to shareholders
Dividends from net investment income (.028) (.025)
Net asset value, end of period $1.00 $1.00
Total return<F6> 2.78% 2.59%
Ratio of expenses to average net assets 1.23% .92%
Ratio of net income to average net assets 2.75% 2.48%
Increase reflected in net income ratio due to
expense reimbursement -- --
Net assets, end of period $99,973,073 $102,325,417
Number of shares outstanding at end of period (in
thousands) 100,024 102,370
<FN>
<F6>Total return is not audited for years prior to 1994.
</FN>
</TABLE>
================================================================================
<TABLE>
<CAPTION>
Prime Portfolio Year Ended September 30,
1992 1991
<S> <C> <C>
Net asset value, beginning of year $1.00 $1.00
Income from investment operations
Net investment income .037 .061
Distributions to shareholders
Dividends from net investment income (.037) (.061)
Net asset value, end of year $1.00 $1.00
Total return<F7> 3.72% 6.27%
Ratio of expenses to average net assets .87% .93%
Ratio of net income to average net assets 3.69% 6.09%
Increase reflected in net income ratio due to
expense reimbursement -- --
Net assets, end of year $106,851,164 $119,316,200
Number of shares outstanding at end of year (in
thousands) 106,897 119,362
<FN>
<F7>Total return is not audited for years prior to 1994.
</FN>
</TABLE>
================================================================================
<TABLE>
<CAPTION>
Prime Portfolio
1990
<S> <C>
Net asset value, beginning of year $1.00
Income from investment operations
Net investment income .074
Distributions to shareholders
Dividends from net investment income (.074)
Net asset value, end of year $1.00
Total return<F7> 7.71%
Ratio of expenses to average net assets .96%
Ratio of net income to average net assets 7.45%
Increase reflected in net income ratio due to
expense reimbursement .13%
Net assets, end of year $117,684,028
Number of shares outstanding at end of year (in
thousands) 117,699
<FN>
<F7>Total return is not audited for years prior to 1994.
</FN>
</TABLE>
================================================================================
<TABLE>
<CAPTION>
Prime Portfolio Year Ended September 30,
1989 1988
<S> <C> <C>
Net asset value, beginning of year $1.00 $1.00
Income from investment operations
Net investment income .083 .067
Distributions to shareholders
Dividends from net investment income (.083) (.067)
Net asset value, end of year $1.00 $1.00
Total return<F8> 8.69% 6.99%
Ratio of expenses to average net assets .91% .86%
Ratio of net income to average net assets 8.27% 6.44%
Increase reflected in net income ratio due to
expense reimbursement .12% .25%
Net assets, end of year $156,776,949 $91,639,997
Number of shares outstanding at end of year (in
thousands) 156,797 91,660
<FN>
<F8>Total return is not audited for years prior to 1994.
</FN>
</TABLE>
================================================================================
<TABLE>
<CAPTION>
Prime Portfolio
1987
<S> <C>
Net asset value, beginning of year $1.00
Income from investment operations
Net investment income .057
Distributions to shareholders
Dividends from net investment income (.057)
Net asset value, end of year $1.00
Total return<F8> 6.07%
Ratio of expenses to average net assets .85%
Ratio of net income to average net assets 5.56%
Increase reflected in net income ratio due to
expense reimbursement .26%
Net assets, end of year $63,133,848
Number of shares outstanding at end of year (in
thousands) 63,138
<FN>
<F8>Total return is not audited for years prior to 1994.
</FN>
</TABLE>
================================================================================
<TABLE>
<CAPTION>
Prime Portfolio Year Ended September 30,
1986 1985
<S> <C> <C>
Net asset value, beginning of year $1.00 $1.00
Income from investment operations
Net investment income .067 .083
Distributions to shareholders
Dividends from net investment income (.067) (.083)
Net asset value, end of year $1.00 $1.00
Total return<F9> 6.16% 7.72%
Ratio of expenses to average net assets .85% .82%
Ratio of net income to average net assets 6.47% 8.02%
Increase reflected in net income ratio due to
expense reimbursement .51% .59%
Net assets, end of year $52,806,544 $21,681,061
Number of shares outstanding at end of year (in
thousands) 52,807 21,681
<FN>
<F9>Total return is not audited for years prior to 1994.
</FN>
</TABLE>
================================================================================
<TABLE>
<CAPTION>
Tax-Free Portfolio Year Ended December 31,
1994 1993
<S> <C> <C>
Net asset value, beginning of year $1.00 $1.00
Income from investment operations
Net investment income .024 .021
Net realized and unrealized loss on investments
-- --
Total from investment operations .024 .021
Distributions to shareholders
Dividends from net investment income (.024) (.021)
Net asset value, end of year $1.00 $1.00
Total return<F10> 2.47% 2.10%
Ratio of expenses to average net assets 1.18% 1.03%
Ratio of net income to average net assets 2.34% 2.07%
Net assets, end of year $65,519,756 $80,189,771
Number of shares outstanding at end of year (in
thousands) 65,644 80,278
<FN>
<F10>Total return is not audited for years prior to 1994.
</FN>
</TABLE>
================================================================================
<TABLE>
<CAPTION>
Tax-Free Portfolio
1992
<S> <C>
Net asset value, beginning of year $1.00
Income from investment operations
Net investment income .028
Net realized and unrealized loss on investments
--
Total from investment operations .028
Distributions to shareholders
Dividends from net investment income (.028)
Net asset value, end of year $1.00
Total return<F10> 2.87%
Ratio of expenses to average net assets 1.02%
Ratio of net income to average net assets 2.84%
Net assets, end of year $80,949,285
Number of shares outstanding at end of year (in
thousands) 81,036
<FN>
<F10>Total return is not audited for years prior to 1994.
</FN>
</TABLE>
================================================================================
<TABLE>
<CAPTION>
Tax-Free Portfolio Year Ended December 31,
1991 1990
<S> <C> <C>
Net asset value, beginning of year $1.00 $1.00
Income from investment operations
Net investment income .044 .054
Net realized and unrealized loss on investments
-- --
Total from investment operations .044 .054
Distributions to shareholders
Dividends from net investment income (.044) (.054)
Net asset value, end of year $1.00 $1.00
Total return<F11> 4.55% 5.62%
Ratio of expenses to average net assets .98% .99%
Ratio of net income to average net assets 4.41% 5.43%
Net assets, end of year $78,683,315 $71,983,342
Number of shares outstanding at end of year (in
thousands) 78,771 72,072
<FN>
<F11>Total return is not audited for years prior to 1994.
</FN>
</TABLE>
================================================================================
<TABLE>
<CAPTION>
Tax-Free Portfolio Year Ended December 31,
1989 1988
<S> <C> <C>
Net asset value, beginning of year $1.00 $1.00
Income from investment operations
Net investment income .057 .047
Net realized and unrealized loss on investments
-- --
Total from investment operations .057 .047
Distributions to shareholders
Dividends from net investment income (.057) (.047)
Net asset value, end of year $1.00 $1.00
Total return<F12> 5.89% 4.80%
Ratio of expenses to average net assets .98% 1.01%
Ratio of net income to average net assets 5.85% 4.69%
Increase reflected in net income ratio due to
expense reimbursement -- --
Net assets, end of year $73,825,821 $76,451,040
Number of shares outstanding at end of year (in
thousands) 73,904 76,637
<FN>
<F12>Total return is not audited for years prior to 1994.
</FN>
</TABLE>
================================================================================
<TABLE>
<CAPTION>
Tax-Free Portfolio
1987
<S> <C>
Net asset value, beginning of year $1.00
Income from investment operations
Net investment income .044
Net realized and unrealized loss on investments
--
Total from investment operations .044
Distributions to shareholders
Dividends from net investment income (.044)
Net asset value, end of year $1.00
Total return<F12> 4.39%
Ratio of expenses to average net assets .88%
Ratio of net income to average net assets 4.16%
Increase reflected in net income ratio due to
expense reimbursement --
Net assets, end of year $114,526,599
Number of shares outstanding at end of year (in
thousands) 114,766
<FN>
<F12>Total return is not audited for years prior to 1994.
</FN>
</TABLE>
================================================================================
<TABLE>
<CAPTION>
Tax-Free Portfolio Year Ended December 31,
1986 1985
<S> <C> <C>
Net asset value, beginning of year $1.00 $1.00
Income from investment operations
Net investment income .045 .054
Net realized and unrealized loss on investments
-- (.001)
Total from investment operations .045 .053
Distributions to shareholders
Dividends from net investment income (.045) (.053)
Net asset value, end of year $1.00 $1.00
Total return<F13> 4.56% 5.34%
Ratio of expenses to average net assets .96% .72%
Ratio of net income to average net assets 4.45% 5.19%
Increase reflected in net income ratio due to
expense reimbursement -- .09%
Net assets, end of year $128,829,078 $47,680,915
Number of shares outstanding at end of year (in
thousands) 128,900 47,701
<FN>
<F13>Total return is not audited for years prior to 1994.
</FN>
</TABLE>
================================================================================
INVESTMENT OBJECTIVE AND POLICIES
Investment Objective: The Fund seeks to earn the highest level of current
income, consistent with preservation of capital and liquidity.
Money Management Plus is a diversified money market fund that offers you a
choice of three different investment Portfolios. Its objective is to earn the
highest level of current income, consistent with preservation of capital and
liquidity, that is available through investment in specified money market
instruments. Each Portfolio's assets are invested in securities maturing in one
year or less (13 months for the Prime Portfolio), and each Portfolio maintains
an average weighted maturity of 90 days or less.
Prime Portfolio invests primarily in CDs, prime commercial paper, and U.S.
Government Obligations.
Prime Portfolio invests in certificates of deposit and other obligations of
banks having total assets of at least $1 billion, prime commercial paper and
high grade (Aaa or Aa rated or equivalent quality) short-term corporate
obligations, including participation interests in loans extended to issuers of
such obligations, and obligations of the U.S. Government, its agencies and
instrumentalities. Such securities may be purchased subject to repurchase
agreements with recognized securities dealers and banks. The Prime Portfolio may
invest more than 25% of its assets in obligations of banks. See the Statement of
Additional Information, "Appendix, Commercial Paper and Bond Ratings." Also, the
Portfolio may invest in high-quality, U.S. dollar-denominated international
money market instruments, and up to 5% of its assets in reverse repurchase
agreements.
Government Portfolio invests only in securities which are backed by the full
faith and credit of the U.S. Government.
Government Portfolio invests solely in securities issued or guaranteed by the U.
S. Treasury, or by agencies or instrumentalities of the U.S. Government which
are backed by the full faith and credit of the U.S. Government. Such securities
may be purchased subject to repurchase agreements with recognized securities
dealers and banks.
Tax-Free Portfolio invests primarily in municipal obligations whose interest is
exempt from federal income tax.
Tax-Free Portfolio invests in fixed and variable rate municipal obligations
whose interest is exempt from federal income tax and which are of high quality.
See "Dividends and Taxes" below for information concerning the federal
alternative minimum tax for particular classes of investors. Its investments
must be rated within the two highest credit ratings categories or, if unrated,
are determined by the Advisor to be of comparable quality. The quality may be
determined by a commercial credit rating service, such as Moody's Investors
Service, Inc., or Standard & Poor's Corporation or, in the case of any
instrument that is not rated, of comparable quality as determined by the
Advisor. There is no limitation on the percentage of the Tax-Free Portfolio's
assets which may be invested in unrated obligations; such obligations, because
they lack ratings, may be less liquid than rated obligations of comparable
quality. For more information on ratings, see the Statement of Additional
Information.
U.S. Government Obligations
Obligations issued by the U.S. Treasury, such as U.S. Treasury bills, notes and
bonds, are supported by the full faith and credit of the U.S. Government.
Certain obligations issued or guaranteed by a U.S. Government agency or
instrumentality are supported by the full faith and credit of the U.S.
Government. These include obligations issued by the Export-Import Bank, Farmers
Home Administration, Government National Mortgage Association, Postal Service,
Merchant Marine, and Washington Metropolitan Area Transit Authority.
The Prime Portfolio may also invest in other U.S. Government agency or
instrumentality obligations which are supported only by the credit of the agency
or instrumentality and may be further supported by the right of the issuer to
borrow from the U.S. Treasury.
Repurchase Agreements
Each Portfolio may enter into repurchase agreements. In a repurchase agreement,
the Portfolio buys a security subject to the right and obligation to sell it
back at a higher price. These transactions must be fully secured at all times,
but they involve some credit risk to the Fund if the other party defaults on its
obligation and the Portfolio is delayed or prevented from liquidating the
collateral.
Reverse Repurchase Agreements (Prime Portfolio only)
The Prime Portfolio may engage in reverse repurchase agreements. In a reverse
repurchase agreement, the Fund sells a security subject to the right and
obligation to buy it back at a higher price. The Fund then invests the proceeds
from the transaction in another obligation in which it is authorized to invest.
In order to minimize any risk involved, the Fund maintains in a segregated
account liquid assets equal in value to the repurchase price, and currently
intends to limit its borrowing due to reverse repurchase agreements to only 5%
of total assets.
Bank CDs
The Prime and Government Portfolios may also invest in certificates of deposit
and other debt obligations of commercial banks, savings banks, and savings and
loan associations having assets of less than $1 billion, provided that the
principal amount of such certificate is insured in full by the Federal Deposit
Insurance Corporation ("FDIC"). The FDIC presently insures accounts up to
$100,000; interest earned above $100,000 is not insured by the FDIC.
When-Issued Purchases
Purchasing obligations for future delivery or on a "when-issued" basis may
increase a Portfolio's overall investment exposure and involves a risk of loss
if the value of the securities declines prior to the settlement date. The
transactions are fully secured at all times.
Variable Rate Obligations
Each Portfolio may invest in variable and floating rate obligations. Variable
rate obligations have a yield which is adjusted periodically based upon changes
in the level of prevailing interest rates. Floating rate obligations have an
interest rate fixed to a known lending rate, such as the prime rate, and are
automatically adjusted when that rate changes. Variable and floating rate
obligations lessen the capital fluctuations usually inherent in fixed income
investments, to diminish the risk of capital depreciation of Portfolio
investments and Portfolio shares; but this also means that should interest rates
decline, the yield of the Portfolio will decline and the Portfolio would not
have as many opportunities for capital appreciation of Portfolio investments.
Demand Notes and Temporary Investments
The Portfolios may invest in floating rate and variable rate demand notes.
Demand notes provide that the holder may demand payment of the note at its par
value plus accrued interest by giving notice to the issuer. To ensure the
ability of the issuer to make payment upon such demand, the note may be
supported by an unconditional bank letter of credit.
The Fund may invest in structured money market instruments. In all cases, the
Portfolios may invest in structured money market instruments. In all cases, it
invests only in high-quality instruments (rated in one of the two highest rating
categories, or if unrated, of comparable credit quality) that meet the
requirements of SEC Rule 2a-7 regarding credit quality and maturity. See the
Statement of Additional Information.
Temporary Taxable Investments for Tax-Free Portfolio
From time to time for liquidity purposes or pending the investment of the
proceeds of the sale of its shares, the Tax-Free Portfolio may invest in and
derive up to 20% of its income from taxable short-term money market type
investments. Interest earned from such taxable investments will be taxable to
you as ordinary income unless you are otherwise exempt from taxation.
Other Policies
The Portfolios have adopted certain fundamental investment restrictions which
are discussed in detail in the Statement of Additional Information. Unless
specifically noted otherwise, the investment objective, policies and
restrictions of the Portfolios are fundamental and may not be changed without
shareholder approval. There can be no assurance that the Fund will be successful
in meeting its investment objective.
YIELD
Yield refers to income generated by an investment over a period of time.
From time to time, the Prime, Government and Tax-Free Portfolios may each
advertise "yield" and "effective yield." Yield figures are based on historical
earnings and are not intended to indicate future performance. The "yield" of a
Portfolio refers to the actual income generated by an investment in the
Portfolio over a particular base period, stated in the advertisement. If the
base period is less than one year, the yield will be "annualized." That is, the
amount of income generated by the investment during the base period is assumed
to be generated over a one-year period and is shown as a percentage of the
investment. The "effective yield" is calculated similarly, but, when annualized,
the income earned by an investment in the Portfolio is assumed to be reinvested.
The "effective yield" will be slightly higher than the "yield" because of the
compounding effect of this assumed reinvestment.
"Tax Equivalent Yield" of the Tax-Free Portfolio.
The Tax-Free Portfolio may also advertise its "tax equivalent yield." The tax
equivalent yield is the yield an investor would be required to obtain from
taxable investments to equal the Portfolio's yield, all or a portion of which
may be exempt from federal income taxes. The tax equivalent yield is computed by
taking the portion of the Portfolio's effective yield by a factor based upon a
stated income tax rate, then adding the portion of the yield that is not exempt
from regular federal income tax. The factor which is used to calculate the tax
equivalent yield is the reciprocal of the difference between 1 and the
applicable income tax rate, which will be stated in the advertisement.
MANAGEMENT OF THE FUND
The Board of Trustees supervises the activities and reviews its contracts with
companies that provide the Fund with services.
The Prime and Government Portfolios are series of Calvert Cash Reserves, a
Massachusetts business trust organized on March 16, 1982, now doing business as
Money Management Plus. In October, 1992, Prime Portfolio began offering a second
class of shares, the CCR Prime Shares, which was discontinued during 1994.
The Tax-Free Portfolio is a series of Calvert Tax-Free Reserves, a Massachusetts
business trust organized on October 20, 1980.
Each Portfolio is an open-end diversified management investment company. The
Portfolios are not required to hold annual shareholder meetings, but special
meetings may be called for certain purposes such as electing Trustees, changing
fundamental policies, or approving a management contract. As a shareholder, you
receive one vote for each share of a Portfolio you own. For matters affecting
only one Portfolio, only shares of that Portfolio are entitled to vote. For
matters affecting only one class, only shares of that class are entitled to
vote.
Calvert Group is one of the largest investment management firms in the
Washington, D.C. area.
Calvert Group, Ltd., parent of the Portfolios' investment advisor, transfer
agent, and distributor, is a subsidiary of Acacia Mutual Life Insurance Company
of Washington, D.C. Calvert Group is one of the largest investment management
firms in the Washington, D.C. area. Calvert Group, Ltd. and its subsidiaries are
located at 4550 Montgomery Avenue, Suite 1000N, Bethesda, Maryland 20814. As of
December 31, 1994, Calvert Group managed and administered assets in excess of
$4.2 billion and more than 200,000 shareholder and depositor accounts.
Calvert Asset Management serves as Advisor to the Portfolios.
Calvert Asset Management Company, Inc. (the "Advisor") is the Portfolios'
investment advisor. The Advisor provides the Portfolios with investment
supervision and management; administrative services and office space; furnishes
executive and other personnel to the Portfolios; and pays the salaries and fees
of all Trustees who are affiliated persons of the Advisor. The Advisor may also
assume and pay certain advertising and promotional expenses of the Portfolios
and reserves the right to compensate broker-dealers in return for their
promotional or administrative services. The Advisor has agreed to limit the
Portfolios' expenses to the most restrictive state limitation in effect.
The Advisor receives a fee based on a percentage of each Portfolio's assets.
The Advisor is entitled, pursuant to the Investment Advisory Agreement, to
receive an annual advisory fee of 0.50% of each Portfolio's respective average
daily net assets. For its services during fiscal year 1994, the Advisor received
a fee of 0.50% of such assets from the Portfolios.
Calvert Administrative Services Company provides administrative services for
Money Management Plus Tax-Free Portfolio.
Calvert Administrative Services Company ("CASC"), an affiliate of the Advisor,
has been retained by Calvert Tax-Free Reserves to provide certain administrative
services necessary to the conduct of its affairs, including the preparation of
regulatory filings and shareholder reports, the daily determination of its net
asset value per share and dividends, and the maintenance of its portfolio and
general accounting records. CASC receives a total fee from Calvert Tax-Free
Reserves of $200,000 per year for providing such services, of which the Money
Management Plus Tax-Free Portfolio paid $5,719 for fiscal 1994.
Calvert Distributors, Inc. serves as underwriter to market the Portfolios'
shares.
Effective March 1, 1995, Calvert Distributors, Inc. ("CDI") is the Portfolios'
principal underwriter and distributor. Under the terms of its underwriting
agreement with the Portfolios, CDI markets and distributes the Portfolios'
shares and is responsible for payment of compensation and service fees to
broker-dealers, banks, and financial services firms, preparation of advertising
and sales literature, and printing and mailing of prospectuses to prospective
investors. Prior to March 1, 1995, Calvert Securities Corporation was the
principal underwriter.
The Portfolios may pay distribution and servicing expenses pursuant to their
Distribution Plan.
Pursuant to Rule 12b-1 under the Investment Company Act of 1940, the Portfolios
have adopted Distribution Plans which permit the Portfolios to pay certain
expenses associated with the distribution of its shares. Amounts paid by the
Fund to the Distributor under the Distribution Plan are used to pay dealers and
other selling firms dealer-paid quarterly compensation at an annual rate of up
to 0.40% of the average daily net assets of accounts the respective firms
maintain in the Portfolio. They are also used to pay dealers and others,
including the Distributor's salespersons who service accounts, service fees at
an annual rate of up to 0.25% of such assets, and to pay CDI for its marketing
and distribution expenses, preparation of advertising and sales literature,
printing and mailing of prospectuses to prospective investors. The Distribution
Plan expenses may not annually exceed 0.35% of the average daily net assets of
any Portfolio. For fiscal year 1994, the Government, Prime, and Tax-Free
Portfolios paid Distribution Plan expenses of 0.25%, 0.33%, and 0.34% of average
daily net assets, respectively.
CDI may also pay additional concessions, including non-cash promotional
incentives, such as merchandise or trips, to dealers employing registered
representatives who sell a minimum dollar amount of shares of the Fund and/or
shares of other Funds underwritten by CDI. CDI may make expense reimbursements
for special training of a dealer's registered representatives, advertising or
equipment, or to defray the expenses of sales contests. CDI may receive
reimbursement of eligible marketing and distribution expenses from the Fund's
Rule 12b-1 Distribution Plan.
The Distribution Plan may be terminated at any time by vote of the Independent
Trustees or by vote of a majority of the outstanding voting shares of the
respective Portfolio.
The transfer agent keeps your account records.
Calvert Shareholder Services, Inc. is the Fund's transfer, dividend disbursing
and shareholder servicing agent.
SHAREHOLDER GUIDE
Opening An Account
You can buy shares of the Portfolios in several ways which are described here
and in the chart on page ___.
An account application accompanies this prospectus. A completed and signed
application is required for each new account you open, regardless of the method
you choose for making your initial investment. Additional forms may be required
from corporations, associations, and certain fiduciaries. If you have any
questions or need extra applications, call your broker, or Calvert Group at
800-368-2748.
To invest in any of Calvert's tax-deferred retirement plans, please call Calvert
Group at 800-368-2748 to receive information and the required separate
application.
Share Price
The Portfolios' shares are sold without a sales charge.
The price of one share is its "net asset value," or NAV. NAV is computed by
adding the value of a Portfolio's investments plus cash and other assets,
deducting liabilities and then dividing the result by the number of shares
outstanding. The NAV is calculated at the close of the Portfolio's business day,
which coincides with the closing of the regular session of the New York Stock
Exchange (normally 4:00 p.m. Eastern time). The Portfolios are open for business
each day the New York Stock Exchange is open. The Portfolios' securities are
valued according to the "amortized cost" method, which is intended to stabilize
the NAV at $1.00 per share.
All purchases of Portfolio shares will be confirmed and credited to your account
in full and fractional shares (rounded to the nearest 1/100 of a share). The
Portfolios may send monthly statements in lieu of immediate confirmations of
purchases and redemptions.
HOW TO BUY SHARES
Method New Accounts Additional Investments
By Mail $2,000 minimum $250 minimum
Please make your check Please make your check
payable to the Portfolio payable to the Portfolio
of your choice and mail it, of your choice and mail it,
with your application to: with your investment slip to:
These addresses Calvert Group Calvert Group
effective P.O. Box 419544 P.O. Box 419739
April 1, 1995 Kansas City, MO 64179-6542 Kansas City, MO 64105-6739
By Registered, Certified, or Overnight Mail:Calvert Group
c/o NFDS, 6th Floor
1004 Baltimore
Kansas City, MO 64105-1807
Through Your Broker $2,000 minimum $250 minimum
FOR ALL OPTIONS BELOW, PLEASE CALL YOUR BROKER, OR CALVERT GROUP AT 800-368-2745
By Exchange $2,000 minimum $250 minimum
(From your account in another Calvert Group Fund)
When opening an account by exchange, your new account must be established with
the same name(s), address and taxpayer identification number as your existing
Calvert account.
By Bank Wire $2,000 minimum $250 minimum
By Calvert Money Not Available for $50 minimum
Controller* Initial Investment
*Please allow sufficient time for Calvert Group to process your initial request
for this service, normally 10 business days. The maximum transaction amount is
$300,000, and your purchase request must be received by 4:00 p.m. Eastern time.
WHEN YOUR ACCOUNT WILL BE CREDITED
Before you buy shares, please read the following information to make sure your
investment is accepted and credited properly.
Your purchase will be processed at the net asset value calculated after your
order is received and accepted. Each Portfolio attempts to maintain a constant
net asset value of $1.00 per share. If your purchase is made by wire and is
received by 12:30 p.m. (Eastern time), your account will be credited and begin
earning dividends on the day of receipt. Exchanges are credited the day the
request is received by mail or telephone, and begin earning dividends the next
business day. If your wire purchase is received after 12:30 p.m. Eastern time,
it will be credited the same business day, and begin earning dividends the next
business day. If the purchase is by check, and is received by 4:00 p.m., it will
be credited that business day, and begin earning dividends the next business
day.
All of your purchases must be made in U.S. dollars and checks must be drawn on
U.S. banks. No cash will be accepted. The Portfolios reserve the right to
suspend the offering of shares for a period of time or to reject any specific
purchase order. If your check does not clear, your purchase will be cancelled
and you will be charged a $10 fee plus costs incurred by the Portfolio. When you
purchase by check or with Calvert Money Controller, those funds will be on hold
for up to 10 business days from the date of receipt. During that period,
redemptions against those funds (including drafts) will not be honored. To avoid
this collection period, you can wire federal funds from your bank, which may
charge you a fee.
EXCHANGES
You may exchange shares of the Portfolio for shares of other Calvert Group
Funds.
If your investment goals change, the Calvert Group Family of Funds has a variety
of investment alternatives that includes common stock funds, tax-exempt and
corporate bond funds, and money market funds. The exchange privilege is a
convenient way to buy shares in other Calvert Group Funds in order to respond to
changes in your goals or in market conditions. Before you make an exchange from
a Fund or Portfolio, please note the following:
Call your broker or a Calvert representative for information and a prospectus
for any of Calvert's other Funds registered in your state. Read the prospectus
of the Fund or Portfolio into which you want to exchange for relevant
information, including class offerings.
Each exchange represents the sale of shares of one Fund and the purchase of
shares of another.
Complete and sign an application for an account in that Fund or Portfolio,
taking care to register your new account in the same name and taxpayer
identification number as your existing Calvert account(s). Exchange instructions
may then be given by telephone if telephone redemptions have been authorized and
the shares are not in certificate form.
Shares on which you have already paid a sales charge at Calvert Group may be
exchanged into another Fund at no additional charge. Effective April 1, 1995,
shares acquired by reinvestment of dividends or distributions may be exchanged
into another Fund at no additional charge.
The Fund reserves the right to terminate or modify the exchange privilege with
60 days' written notice.
OTHER CALVERT GROUP SERVICES
Calvert Information Network
24 hour performance and prices
Calvert Group has a round-the-clock telephone service that lets existing
customers use a push button phone to obtain prices, performance information, and
account balances. Complete instructions for this service may be found on the
back of each statement.
Calvert Money Controller
Calvert Money Controller eliminates the delay of mailing a check or the expense
of wiring funds. You can request this free service on your application.
This service allows you to authorize electronic transfers of money to purchase
or sell shares. You use Calvert Money Controller like an "electronic check" to
move money ($50 to $300,000) between your bank account and your Calvert Group
account with one phone call. Allow one or two business days after the call for
the transfer to take place; for money recently invested, allow normal check
clearing time (up to 10 business days) before redemption proceeds are sent to
your bank.
You may also arrange systematic monthly or quarterly investments (minimum $50)
into your Calvert Group account. After you give us proper authorization, your
bank account will be debited to purchase Fund shares. A debit entry will appear
on your bank statement. If you would like to make arrangements for systematic
monthly or quarterly redemptions from your Calvert Group account, call your
broker or Calvert for a Money Controller Application.
Telephone Transactions
Calvert may record all telephone calls.
If you have telephone transaction privileges, you may purchase, redeem, or
exchange shares, wire funds and use Calvert Money Controller by telephone. You
automatically have telephone privileges unless you elect otherwise. The Fund,
the transfer agent and their affiliates are not liable for acting in good faith
on telephone instructions relating to your account, so long as they follow
reasonable procedures to determine that the telephone instructions are genuine.
Such procedures may include recording the telephone calls and requiring some
form of personal identification. You should verify the accuracy of telephone
transactions immediately upon receipt of your confirmation statement.
Complete the "Option" sections of the application for the easiest way to
establish services.
The easiest way to establish optional services on your Calvert Group account is
to select the options you desire when you complete your account application. If
you wish to add other options later, you may have to provide us with additional
information and a signature guarantee. Please call your broker or Calvert
Investor Relations at 800-368-2745 for further assistance. For our mutual
protection, we may require a signature guarantee on certain written transaction
requests. A signature guarantee verifies the authenticity of your signature, and
may be obtained from any bank, savings and loan association, credit union, trust
company, broker-dealer firm or member of a domestic stock exchange. A signature
guarantee cannot be provided by a notary public.
Householding of General Mailings
You can help in an effort to reduce Fund expenses and save paper and trees for
the environment.
If you have multiple accounts with Calvert, you may receive combined mailings of
some shareholder information, such as semi-annual and annual reports. Please
contact Calvert Investor Relations at 800-368-2745 to receive additional copies
of information.
Special Services and Charges
The Fund pays for shareholder services but not for special services that are
required by a few shareholders, such as a request for a historical transcript of
an account. You may be required to pay a research fee for these special
services.
If you are purchasing shares of the Fund through a program of services offered
by a securities dealer or financial institution, you should read the program
materials in conjunction with this Prospectus. Certain features of the Fund may
be modified in these programs, and administrative charges may be imposed by the
broker-dealer for the services rendered.
Tax-Saving Retirement Plans
Contact Calvert Group for complete information kits discussing the plans, and
their benefits, provisions and fees.
Calvert Group can set up your new account under one of several tax-deferred
plans. These plans let you invest for retirement and shelter your investment
income from current taxes. Minimums may differ from those listed in the chart on
page _____.
Individual retirement accounts (IRAs): available to anyone who has earned
income. You may also be able to make investments in the name of your spouse, if
your spouse has no earned income.
Qualified Profit-Sharing and Money-Purchase Plans (including 401(k) Plans):
available to self-employed people and their partners, or to corporations and
their employees.
Simplified Employee Pension Plan (SEP-IRA): available to self-employed people
and their partners, or to corporations. Salary reduction pension plans (SAR-SEP
IRAs) are also available to employers with 25 or fewer employees.
403(b)(7) Custodial Accounts: available to employees of most non-profit
organizations and public schools and universities.
Consolidated Asset Account ("CAA")
Certain brokerage firms may offer their customers CAA, a special cash management
service linked to one of the Fund's Portfolios. CAA customers may have
free-credit cash balances at their brokerage firm account automatically invested
in Portfolio shares on a daily basis. Participating brokerage firms will charge
their customers a fee for the CAA program and may establish a higher minimum
balance. Details of CAA, including the fee charged, are available from
participating brokerage firms. This prospectus should be read together with such
firm's materials regarding these fees and services.
SELLING YOUR SHARES
You may redeem all or a portion of your shares on any business day. Your shares
will be redeemed at the next net asset value calculated after your redemption
request is received and accepted. See the chart below for specific requirements
necessary to make sure your redemption request is acceptable. Remember that the
Fund may hold payment on the redemption of your shares until it is reasonably
satisfied that investments made by check or by Calvert Money Controller have
been collected (normally up to 10 business days).
Redemption Requirements To Remember
To ensure acceptance of your redemption
request, please follow the procedures described here and below.
Once your shares are redeemed, the proceeds will normally be sent to you on the
next business day, but if making immediate payment could adversely affect the
Fund, it may take up to seven (7) days. Calvert Money Controller redemptions
generally will be credited to your bank account on the first or second business
day after your phone call. When the New York Stock Exchange is closed (or when
trading is restricted) for any reason other than its customary weekend or
holiday closings, or under any emergency circumstances as determined by the
Securities and Exchange Commission, redemptions may be suspended or payment
dates postponed.
If you sell shares by telephone or written request, you will receive dividends
through the date the request is received and processed. If you write a draft to
sell shares, the shares will earn dividends until the draft is presented to the
Portfolio to be paid.
Minimum account balance is $1,000 per Portfolio.
Please maintain a balance in your account of at least $1,000 per Portfolio. If,
due to redemptions, the account falls below $1,000, or you fail to invest at
least $1,000, it may be closed and the proceeds mailed to you at the address of
record. You will be given notice that your account will be closed after 30 days
unless you make an additional investment to increase your account balance to the
$1,000 minimum per Portfolio.
HOW TO SELL YOUR SHARES
Draftwriting
You may redeem shares in your account by writing a draft for at least $250. If
you complete and return the signature card for Draftwriting, the Portfolio will
mail bank drafts to you, printed with your name and address. Generally, there is
no charge to you for the maintenance of this service or the clearance of drafts,
but the Portfolio reserves the right to charge a service fee for drafts returned
for insufficient funds. As a service to shareholders, the Portfolio may
automatically transfer the dollar amount necessary to cover drafts you have
written on the Portfolio to your Portfolio account from any other of your
identically registered accounts in Calvert money market funds or Calvert Insured
Plus. The Fund may charge a fee for this service.
By Mail To:
Calvert Group
4550 Montgomery Ave.
Bethesda, MD 20814
Effective 4/1/95:
Calvert Group
P.O. Box 419544
Kansas City, MO
64179-6542
You may redeem available shares from your account at any time by sending a
letter of instruction, including your name, account and Fund number, the
number of shares or dollar amount, and where you want the money to be sent.
Additional requirements, below, may apply to your account. The letter of
instruction must be signed by all required authorized signers. If you want
the money to be wired to a bank not previously authorized, then a voided
bank check must be enclosed with your letter. If you do not have a voided
check or if you would like funds sent to a different address or another
person, your letter must be signature guaranteed.
Type of Registration Requirements
Corporations,
Associations Letter of instruction and a corporate resolution,
signed by person(s)authorized to act on the
account, accompanied by signature guarantee(s).
Trusts Letter of instruction signed by the
Trustee(s) (as Trustee), with a signature
guarantee. (If the Trustee's name is not
registered on your account, provide a copy
of the trust document, certified within
the last 60 days.)
By Telephone
Please call 800-368-2745. You may redeem shares from your account by telephone
and have your money mailed to your address of record or wired to an address or
bank you have previously authorized. A charge of $5 is imposed on wire transfers
of less than $1,000. See "Telephone Transactions" on page ___.
Calvert Money Controller
Please allow sufficient time for Calvert Group to process your initial request
for this service (normally 10 business days). You may also authorize automatic
fixed amount redemptions by Calvert Money Controller. All requests must be
received by 4:00 p.m. Eastern time. Accounts cannot be closed by this service
Exchange to Another Calvert Group Fund
You must meet the minimum investment requirement of the other Calvert Group Fund
or Portfolio. You can only exchange between accounts with identical names,
addresses and taxpayer identification number, unless previously authorized with
a signature-guaranteed letter.
Systematic Check Redemptions
If you maintain an account with a balance of $10,000 or more, you may have
regular redemption checks for a fixed amount sent to you on the 15th of each
month, simply by sending a letter with all information, including your account
number, and the dollar amount ($100 minimum). If you would like a regular check
mailed to another person or place, your letter must be signature guaranteed.
Through your Broker
If your account is held in your broker's name ("street name"), you should
contact your broker directly to transfer, exchange or redeem shares.
DIVIDENDS AND TAXES
Each year, the Portfolios distribute substantially all of their net investment
income to shareholders.
Dividends from the Portfolio'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 additional
shares of the same Portfolio, unless you elect to have the dividends of $10 or
more paid in cash (by check or by Calvert Money Controller). Dividends and
distributions from the Portfolios may also be invested in shares of any other
Calvert Group Fund or Portfolio, but will not be subject to the applicable sales
charge, effective April 1, 1995. You must notify the Fund in writing to change
your payment options. If you elect to have dividends and/or distributions paid
in cash, and the U.S. Postal Service cannot deliver the check, or if it remains
uncashed for six months, it, as well as future dividends and distributions, will
be reinvested in additional shares.
Federal Taxes
In January, the Portfolios will mail you Form 1099-DIV indicating the federal
tax status of dividends and any capital gain distributions paid to you by the
Portfolios 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 Portfolios' dividends may
qualify for the dividends received deduction for corporations.
Tax Information for the Tax-Free Portfolio
Dividends derived from interest on municipal obligations held in the Tax-Free
Portfolio constitute exempt-interest dividends which are not subject to federal
income tax. The exempt-interest portion of the dividends will be based on the
ratio of the Portfolio's net tax-exempt income to taxable income for the entire
fiscal year. Dividends attributable to interest on certain private activity
bonds must be included in federal alternative minimum tax for individuals and
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 requires the
Portfolios 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 Portfolios reserve the right to reject any new account or any
purchase order for failure to supply a certified TIN.
================================================================================
To Open an Account: Prospectus
800-368-2748 January 31, 1995
Performance and Prices:
Calvert Information Network MONEY MANAGEMENT PLUS
24 hours, 7 days a week
800-368-2745
Prime Portfolio
Service for Existing Account:
Shareholders 800-368-2745 Government Portfolio
Brokers 800-368-2746
Tax-Free Portfolio
TDD for Hearing Impaired:
800-541-1524
PRINCIPAL UNDERWRITER
Calvert Distributors, Inc. (effective 3/1/95)
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
Table of Contents
Fund Expenses
Financial Highlights
Investment Objectives and Policies
Yield
Management of the Fund
SHAREHOLDER GUIDE:
How to Buy Shares
When Your Account Will Be Credited
Exchanges
Other Calvert Group Services
Selling Your Shares
How to Sell Your Shares
Dividends and Taxes
