SEC Registration Nos.
2-69565 and 811-3101
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-1A
REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OF 1933
Post-Effective Amendment No. 44 XX
and/or
REGISTRATION STATEMENT UNDER THE
INVESTMENT COMPANY ACT OF 1940
Amendment No. 44 XX
Calvert Tax-Free Reserves
This filing pertains only to Calvert Tax-Free Reserves Institutional Class
(Exact Name of Registrant as Specified in Charter)
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
(Address of Principal Executive Offices)
Registrant's Telephone Number: (301) 951-4800
William M. Tartikoff, Esq.
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
(Name and Address of Agent for Service)
It is proposed that this filing will become effective
__ Immediately upon filing __ on (date)
pursuant to paragraph (b) pursuant to paragraph (b)
XX 60 days after filing __ on (date)
pursuant to paragraph (a) pursuant to paragraph (a)
of Rule 485.
<PAGE>
Calvert Tax-Free Reserves
Form N-1A Cross Reference Sheet
Item number Prospectus Caption
1. Cover Page
2. Fund Expenses
3. Financial Highlights
Yield or Total Return
4. Investment Objective and Policies
Management of the Fund
5. Management of the Fund
6. Alternative Sales Options
Management of the Fund
Dividends and Taxes
7. How to Buy Shares
Management of the Fund
Net Asset Value
Reduced Sales Charge
When Your Account Will Be Credited
Exchanges
8. Alternative Sales Options
How to Sell Your Shares
9. *
Statement of Additional Information Caption
10. Cover Page
11. Table of Contents
12. General Information
13. Investment Objective
Investment Policies
Investment Restrictions
Portfolio Transactions
14. Trustees and Officers
15. Trustees and Officers
16. Investment Advisor
Administrative Services
Independent Accountants and Custodians
Method of Distribution
17. Portfolio Transactions
18. General Information
19. Purchases and Redemptions of Shares
Valuation of Shares
20. Tax Matters
21. Administrative Services
22. Calculation of Yield
Calculation of Yield and Total Return
23. Financial Statements
* Inapplicable or negative answer
<PAGE>
Prospectus April 30, 1998
Calvert Tax-Free Reserves Money Market Portfolio
Institutional Class
4550 Montgomery Avenue, Bethesda, Maryland 20814
Investment Objective and Policies
Calvert Tax-Free Reserves (the "Fund") Money Market Portfolio (the
"Portfolio") seeks to earn the highest interest income exempt from federal
income taxes as is consistent with prudent investment management, preservation
of capital, and the quality and maturity characteristics of the Portfolio.
The Money Market Portfolio seeks to maintain a constant net asset value of
$1.00 per share. There can be no assurance that the Portfolio will be
successful in maintaining a constant net asset value of $1.00 per share. An
investment in the Portfolio is neither insured nor guaranteed by the U.S.
Government.
Purchase Information
The Money Market Portfolio offers two classes of shares, Class O, described in
and offered by another Calvert Tax-Free Prospectus, and the Institutional
Class (the "Class"), offered by this Prospectus.
To Open An Account
Complete and return the enclosed Account Application. Minimum initial
investment is $1,000,000.
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 Portfolio's goals match your own. Keep this document for future reference.
A Statement of Additional Information ("SAI") (dated April 30, 1998) 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: 800-317-2274.
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.
The SEC maintains a Web site at http://www.sec.gov that contains the Statement
of Additional Information, material incorporated by reference, and other
information regarding the Fund.
Table of Contents
Fund Expenses 2
Financial Highlights 2
Investment Objective and Policies 3
Yield 4
Management of the Fund 5
Shareholder Guide
How to Buy Shares 6
When Your Account Will be Credited 6
Exchanges 7
Other Calvert Group Services 7
How to Sell Your Shares 7
Dividends and Taxes 8
<PAGE>
FUND EXPENSES
A. Shareholder Transaction Expenses Institutional Class
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
(as a percentage of average net assets)
Management Fees 0.30%
Rule 12b-1 Fees None
Other Expenses 0.__%
Total Fund Operating Expenses 0.__%
C. Example:
You would pay the following expenses on a $1,000 investment, assuming
(1) 5% annual return; and (2) redemption at the end of each period:
1 Year 3 Years 5 Years 10 Years
$__ $__ $__ $__
The example, which is hypothetical, should not be considered a
representation of past or future expenses. Actual expenses may be higher or
lower than those shown.
Explanation of Table: The purpose of the table is to assist you in
understanding the various costs and expenses that an investor in the Class may
bear directly (shareholder transaction costs) or indirectly (annual class
operating expenses).
Shareholder Transaction Expenses
are charges you pay when you buy or sell shares of the Class. If you request a
wire redemption of less than $50,000, you may be charged a $5 wire fee.
Annual Fund Operating Expenses
have been restated to reflect expenses anticipated in the current fiscal year.
[Note to SEC: The fiscal year ended December 31, 1997 was a combination of
Class MMP and the Institutional Class.] Management Fees are paid by the
Portfolio to Calvert Asset Management Company, Inc. (the "Advisor") for
managing its investments and business affairs. Management fees include the
administrative service fee paid to Calvert Administrative Services Company.
The Portfolio 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 yield of the Class
and are not charged directly to individual shareholder accounts. Please refer
to the section "Management of the Fund" for further information.
<PAGE>
FINANCIAL HIGHLIGHTS
The following table provides information about financial history. It expresses
the information in terms of a single share outstanding throughout the current
period for the Institutional Class, and, for the period from October 2, 1995
through July 31, 1997, for Class MMP (the predecessor class to the
Institutional Class). The table has been audited by those independent
accountants whose reports are included in the Annual Reports to Shareholders.
The table should be read in conjunction with the financial statements and
their related notes. The current Annual Report to Shareholders is incorporated
by reference into the SAI.
[Financial Highlights for the Institutional Class and its predecessor, Class
MMP, will be inserted here.]
<PAGE>
INVESTMENT OBJECTIVE AND POLICIES
Calvert Tax-Free Reserves Money Market Portfolio seeks to earn the highest
level of interest income exempt from federal income taxes as is consistent
with prudent investment management, preservation of capital, and the quality
and maturity characteristics of the Portfolio.
The Money Market Portfolio invests primarily in a diversified portfolio of
municipal obligations whose interest is exempt from federal income tax.
Municipal obligations in which the Portfolio invests are short-term, fixed and
variable rate instruments of minimal credit risk and of high quality. The
Portfolio invests in municipal bonds and notes and tax-exempt commercial paper
within the two highest credit ratings categories or, if unrated, are
determined by the Advisor to be of comparable quality. Short-term obligations
have remaining maturities of one year or less. The Portfolio maintains an
average weighted maturity of 90 days or less.
Credit Quality
The credit quality of municipal obligations is determined by reference to a
commercial credit rating service, such as Moody's Investors Service, Inc. or
Standard & Poor's Corporation. If an instrument is not rated, credit quality
is determined by the Advisor under the supervision of the Board of Trustees.
High grade, as determined by a NRSRO, is currently defined as the top two
rating categories, i.e., AAA/Aaa, and AA/Aa. There is no limitation on the
percentage of the Portfolio's assets that may be invested in unrated
obligations; such obligations may be less liquid than rated obligations of
comparable quality. The ratings used by these services are described in the
Appendix to the Statement of Additional Information.
Variable Rate Obligations
The Portfolio may invest in variable rate obligations. Variable rate
obligations have a yield that is adjusted periodically based on 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 the known rate changes. Variable rate obligations
lessen the capital fluctuations usually inherent in fixed income investments.
This diminishes the risk of capital depreciation of investment securities in a
Portfolio and, consequently, of Portfolio shares. However, if interest rates
decline, the yield of the Portfolio will decline, causing the Portfolio and
its shareholders to forego the opportunity for capital appreciation of the
Portfolio investments and of their shares.
Demand Notes
The Portfolio 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 on demand, the note may be supported by
an unconditional bank letter of credit.
Interest-Rate Risk
All fixed income instruments are subject to interest-rate risk; that is, if
the market interest rates rise, the current principal value of a bond will
decline.
Municipal Leases
The Money Market Portfolio may invest in structured money market instruments,
where the underlying security is a municipal lease. Generally, such
instruments are structured as tax-exempt commercial paper or variable rate
demand notes, and are typically secured by an unconditional letter of credit.
In the unlikely event that the letter of credit is not honored, the lease
would present special risks, such as the chance that the municipality might
not appropriate funding for the lease payments. Thus, the Advisor considers
risk of cancellation in its investment analysis. Certain leases may be
considered illiquid. In all cases, the Portfolio 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.
When-Issued Purchases
New issues of municipal obligations are offered on a when-issued basis; that
is, delivery and payment for the securities normally take place 15 to 45 days
after the date of the transaction. The payment obligation and the yield that
will be received on the securities are each fixed at the time the buyer enters
into the commitment. The Portfolio will only make commitments to purchase
these securities with the intention of actually acquiring them, but may sell
these securities before the settlement date if it is deemed advisable as a
matter of investment strategy.
Temporary Investments
For liquidity purposes or pending the investment of the proceeds of the sale
of its shares, the 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 Portfolio may temporarily borrow money from banks to meet redemption
requests, but such borrowing may not exceed 10% of the value of its total
assets. The Portfolio has adopted certain fundamental investment restrictions
which are discussed in detail in its Statement of Additional Information.
Unless specifically noted otherwise, the investment objective, policies and
restrictions of the Portfolio are fundamental and may not be changed without
shareholder approval.
YIELD
Yield refers to income generated by an investment over a period of time for
each class.
From time to time, the Money Market Portfolio Institutional Class may
advertise "yield" and "effective yield." Yield figures are based on historical
earnings and are not intended to indicate future performance. The "yield" of
the Class refers to the actual income generated by an investment in
Institutional Class 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
Institutional Class shares 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"
Money Market Portfolio Institutional Class 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 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.
Calvert Tax-Free Reserves Money Market Portfolio Institutional Class is a
class of Calvert Tax-Free Reserves Money Market Portfolio ("CTFRMM"), a series
of Calvert Tax-Free Reserves, a Massachusetts business trust organized on
October 20, 1980. Prior to July 31, 1997, CTFRMM offered Class MMP, which has
been discontinued. The original class of CTFRMM (Class O) and the CTFRMM
Institutional Class shares represent interests in the same portfolio of
investments and are identical in all respects, except:
(a) the classes may have different transfer agency and administrative
service fees;
(b) postage and delivery, printing and stationery expenses will be
separately allocated;
(c) the classes will have different dividend rates due solely to the
effects of (a) through (b) above.
The Fund is an open-end diversified management investment company. The Fund is
not required to hold annual shareholder meetings, but special meetings may be
called for certain purposes such as electing Trustees, changing fundamental
policies, or approving a management contract. As a shareholder, you receive
one vote for each share of the 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 Portfolio's investment advisor, shareholder
servicing 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, 1997, Calvert Group managed and
administered assets in excess of $5 billion and more than 200,000 shareholder
and depositor accounts.
Calvert Asset Management serves as Advisor to the Portfolio.
Calvert Asset Management Company, Inc. (the "Advisor") is the Portfolio's
investment advisor. The Advisor provides the Portfolio with investment
supervision and management; administrative services and office space;
furnishes executive and other personnel to the Portfolio; 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 Portfolio and reserves the right to compensate broker-dealers
in return for their promotional or administrative services.
The Advisor receives a fee based on a percentage of the Portfolio's assets.
Pursuant to the Investment Advisory Agreement, the Advisor is entitled to
receive an annual advisory fee of 0.25% of the first $500 million of average
daily net assets, 0.20% of the next $500 million, and 0.15% on assets of $1
billion or more.
Calvert Administrative Services Company provides administrative services for
the 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. For providing
such services to the Institutional Class, CASC receives 0.05% of the average
daily net assets of the Class.
Calvert Distributors, Inc. serves as underwriter to market the Money Market
Portfolio'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 Portfolio's shares and is responsible for
preparation of advertising and sales literature, and printing and mailing of
prospectuses to prospective investors.
The transfer agent keeps your account records.
Calvert Shareholder Services, Inc. is the Fund's shareholder servicing agent.
National Financial Data Services, Inc. ("NFDS"), 1004 Baltimore, Kansas City,
Missouri, 64105, is the transfer and dividend disbursing agent for the Fund.
SHAREHOLDER GUIDE
Opening An Account
You can buy shares of the Class in several ways which are described here and
in the chart below.
An account application accompanies this prospectus. A completed and signed
application is required for each new account you open. Additional forms may be
required from corporations, associations, and certain fiduciaries. If you have
any questions or need extra applications, call Calvert Group at 800-317-2274.
Share Price
The Portfolio'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 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 Portfolio is open for
business each day the New York Stock Exchange is open. The Portfolio'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 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 Portfolio may send monthly statements in lieu of immediate
confirmations of purchases and redemptions.
HOW TO BUY SHARES
Method Initial investment Additional Investments
By wire $1,000,000 minimum $25,000 minimum
Wire investments to: State Street Bank and Trust Company
Boston MA
ABA# 011000028
FBO: CTFRMM Institutional Fund 718
Wire Account #9903-765-7
Your name and account number
By Exchange $1,000,000 minimum $25,000 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.
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 NAV calculated after your order is
received and accepted. A telephone order placed to Calvert Institutional
Marketing Group by 11:00 a.m. Eastern time will receive the dividend on Class
shares declared that day if federal funds are received by the custodian by 5
p.m. Eastern time. Telephone orders placed after 11:00 a.m. will begin earning
dividends on Class shares the next business day. If no telephone order is
placed, investments begin earning dividends the next business day. Exchanges
begin earning dividends the next business day after the exchange request is
received by mail or telephone.
All of your purchases must be made by wire. No cash or checks will be
accepted. The Fund reserves the right to suspend the offering of shares for a
period of time or to reject any specific purchase order.
EXCHANGES
Each exchange represents the sale of shares of one Fund and the purchase of
shares of another.
If your investment goals change, the Calvert Group Family of Funds has a
variety of investment alternatives that includes common stock funds,
tax-exempt and corporate bond funds, and money market funds. The exchange
privilege is a convenient way to buy shares in other Calvert Group Funds in
order to respond to changes in your goals or in market conditions. Before you
make an exchange from a Fund or Portfolio, please note the following:
Call the Calvert Institutional Marketing Group for information and a
prospectus for any of Calvert's other Funds registered in your state. Read the
prospectus of the Fund or Portfolio into which you want to exchange for
relevant information.
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. Shares acquired by
reinvestment of dividends or distributions may be exchanged into another Fund
at no additional charge. Except for money market funds, if you make a purchase
at NAV, you may exchange that amount to another fund at no additional sales
charge.
The Fund reserves the right to terminate or modify the exchange privilege with
60 days written notice.
OTHER CALVERT GROUP SERVICES
Calvert Information Network
For 24 hour performance and account information call 800-368-2745 or visit
http://www.calvertgroup.com
You can obtain prices, yields, account balances, and authorize certain
transactions with the convenience of one telephone call, 24 hours a day.
Telephone Transactions
You may purchase, redeem, or exchange shares, and wire funds by telephone if
you have pre-authorized service instructions. Unless you elect otherwise, you
will automatically be given telephone access when you open your account. The
Fund, the transfer agent, the shareholder servicing agent, and their
affiliates are not liable for telephone transactions relating to your account
when they are executed in good faith, as long as reasonable precautions are
taken to verify the authenticity of the instructions. Calvert may choose to
verify account transactions by recording telephone calls or requiring some
form of personal identification. You should always verify the accuracy of
telephone transactions immediately upon receipt of your confirmation statement.
Account Services
The easiest way to establish optional services on your Calvert Group account
is to select the options you desire when you open a new account. If you wish
to add or change services later, we may require a signature guarantee to
verify the authenticity of your signature. A signature guarantee 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 notary
public cannot provide a signature guarantee. Please call the Calvert
Institutional Marketing Group at 800-317-2274 for assistance.
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.
HOW TO SELL YOUR SHARES
You may redeem all or a portion of your shares on any business day. Your
shares will be redeemed at the next NAV calculated after your redemption
request is received and accepted.
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 Portfolio, it may take up to seven (7) days. 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.
Redemption proceeds are normally paid in cash. However, at the sole discretion
of the Portfolio, the Portfolio has the right to redeem shares in assets other
than cash for redemption amounts exceeding, in any 90 day period, $250,000 or
1% of the NAV of the Portfolio, whichever is less, or as allowed by law.
If you sell shares by telephone or written request, you will receive dividends
through the date the request is received and processed. Calvert encourages you
to notify the Institutional Marketing Group for any redemption over $10
million per day.
Telephone
Please call the Institutional Marketing Group at 800-317-2274. You may redeem
shares from your account by telephone and have your money mailed to your
address of record or wired to a bank you have previously authorized. Same-day
wire redemptions may be ordered by calling the Institutional Marketing Group
by 11:00 a.m. Eastern time. All other wires will be transmitted the next
business day. A charge of $5 may be imposed on wire transfers of less than
$50,000. See "Telephone Transactions."
Minimum account balance
Please maintain a balance in your account of at least $1,000,000. If, due to
redemptions, the account falls below $1,000,000, or you fail to invest at
least $1,000,000, 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 $1,000,000 minimum.
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.
Mail To: Calvert Institutional Marketing Group, 4550 Montgomery Avenue,
Bethesda, Maryland 20814
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.
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, you must enclose a letter on corporate letterhead, signed by one
or more authorized signers.
DIVIDENDS AND TAXES
Each year, the Portfolio distributes substantially all of its 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). Dividends and distributions from the Portfolio
may be invested in shares of any other Calvert Group Fund or Portfolio with no
additional sales charge. You must notify the Portfolio 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. No dividends will
accrue on amounts represented by uncashed distribution or redemption checks.
Federal Taxes
In January, the Portfolio will mail you Form 1099-DIV indicating the federal
tax status of dividends and any capital gain distributions paid to you by the
Portfolio 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 Portfolio shares. A portion of
the Portfolio's dividends may qualify for the dividends received deduction for
corporations.
Other Tax Information
In addition to federal taxes, you may be subject to state or local taxes on
your investment, depending on the laws in your area. You will be notified to
the extent, if any, that dividends reflect interest received from U.S.
government securities. Such dividends may be exempt from certain state income
taxes.
Taxpayer Identification Number
If we do not have your correct Social Security or Taxpayer Identification
Number ("TIN") and a signed certified application or Form W-9, Federal law may
require the Portfolio to withhold 31% of your dividends. In addition, you may
be subject to a fine. You will also be prohibited from opening another account
by exchange. If this TIN information is not received within 60 days after your
account is established, your account may be redeemed at the current NAV on the
date of redemption. The Fund reserves the right to reject any new account or
any purchase order for failure to supply a certified TIN.
<PAGE>
Calvert Tax-Free Reserves
Money Market Portfolio
Limited-Term Portfolio
Statement of Additional Information
April 30, 1998
INVESTMENT ADVISOR
Calvert Asset Management Company, Inc.
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
SHAREHOLDER SERVICE TRANSFER AGENT
Calvert Shareholder Services, Inc. National Financial Data Services, Inc.
4550 Montgomery Avenue 1004 Baltimore
Suite 1000N 6th Floor
Bethesda, Maryland 20814 Kansas City, Missouri 64105
PRINCIPAL UNDERWRITER INDEPENDENT ACCOUNTANTS
Calvert Distributors, Inc. Coopers & Lybrand, L.L.P.
4550 Montgomery Avenue 250 West Pratt Street
Suite 1000N Baltimore, Maryland 21201
Bethesda, Maryland 20814
TABLE OF CONTENTS
Investment Objective 1
Investment Policies 1
Investment Restrictions 2
Purchases and Redemptions of Shares3
Reduced Sales Charges 4
Dividends and Distributions 4
Tax Matters 4
Valuation of Shares 5
Calculation of Yield and Total Return 6
Advertising 8
Trustees and Officers 8
Investment Advisor 10
Administrative Services 10
Transfer and Shareholder Servicing Agents __
Independent Accountants and Custodians 11
Method of Distribution 11
Portfolio Transactions 11
General Information 12
Financial Statements 12
Appendix 12
STATEMENT OF ADDITIONAL INFORMATION-April 30, 1998
CALVERT TAX-FREE RESERVES
Money Market Portfolio
Limited-Term Portfolio
4550 Montgomery Avenue, Bethesda, Maryland 20814
New Account (800) 368-2748 Shareholder
Information: (301) 951-4820 Services: (800) 368-2745
Broker (800) 368-2746 TDD for the Hearing-
Services: (301) 951-4850 Impaired: (800) 541-1524
This Statement of Additional Information is not a prospectus.
Investors should read the Statement of Additional Information in conjunction
with the Calvert Tax-Free Reserves Prospectus, dated April 30, 1998, which may
be obtained free of charge by writing the Fund at the above address or calling
the telephone numbers listed above.
INVESTMENT OBJECTIVE
The Money Market and Limited-Term Portfolios (the "Portfolios") are
series of Calvert Tax-Free Reserves (the "Fund"), and are designed to provide
individual and institutional investors in higher tax brackets with the highest
level of interest income exempt from federal income taxes as is consistent
with prudent investment management, preservation of capital, and the quality
and maturity characteristics prescribed for each Portfolio. The Money Market
Portfolio further seeks to maintain a constant net asset value of $1.00 per
share. There is, of course, no assurance that the Portfolios will be
successful in meeting their investment objectives or maintaining the Money
Market Portfolio's net asset value constant at $1.00 per share because there
are inherent risks in the ownership of any investment.
Dividends paid by the Portfolios will fluctuate with income earned on
investments. In addition, the dividends and distributions paid and the value
of each share will vary by class of shares; the value of the Limited-Term
Portfolio's shares will fluctuate to reflect changes in the market value of
the Portfolio's investments. The Portfolios will attempt, through careful
management and diversification, to reduce these risks and enhance the
opportunities for higher income and greater price stability.
INVESTMENT POLICIES
The Money Market Portfolio and Limited-Term Portfolio each invest
primarily in a diversified portfolio of municipal obligations whose interest
is exempt from federal income tax. The Portfolios differ in their anticipated
income yields, quality, length of average weighted maturity, and capital value
volatility. A complete explanation of municipal obligations and municipal bond
and note ratings is set forth in the Appendix.
The credit rating of each Portfolio's assets as of its most recent
fiscal year-end appears in the Annual Report to Shareholders, incorporated by
reference herein.
Variable Rate Demand Notes
The Board of Trustees has approved investments in floating and
variable rate demand notes upon the following conditions: the Fund has right
of demand, upon notice not to exceed thirty days, against the issuer to
receive payment; the issuer will be able to make payment upon such demand,
either from its own resources or through an unqualified commitment from a
third party; and the rate of interest payable is calculated to ensure that the
market value of such notes will approximate par value on the adjustment dates.
The remaining maturity of such demand notes is deemed the period remaining
until such time as the Fund has the right to dispose of the notes at a price
which approximates par and market value.
Municipal Leases
The Portfolio may invest in municipal leases, or structured instruments where
the underlying security is a municipal lease. A municipal lease is an
obligation of a government or governmental authority, not subject to voter
approval, used to finance capital projects or equipment acquisitions and
payable through periodic rental payments. The Portfolio may purchase unrated
leases. The Fund's Advisor, under the supervision of the Board of
Trustees/Directors, is responsible for determining the credit quality of such
leases on an ongoing basis, including an assessment of the likelihood that the
lease will not be canceled. Certain municipal leases may be considered
illiquid and subject to the Portfolio's limit on illiquid securities. The
Board of Trustees/Directors has directed the Advisor to treat a municipal
lease as a liquid security if it satisfies the following conditions: (A) such
treatment must be consistent with the Portfolio's investment restrictions; (B)
the Advisor should be able to conclude that the obligation will maintain its
liquidity throughout the time it is held by the Portfolio, based on the
following factors: (1) whether the lease may be terminated by the lessee; (2)
the potential recovery, if any, from a sale of the leased property upon
termination of the lease; (3) the lessee's general credit strength (e.g., its
debt, administrative, economic and financial characteristics and prospects);
(4) the likelihood that the lessee will discontinue appropriating funding for
the leased property because the property is no longer deemed essential to its
operations (e.g., the potential for an "event of nonappropriation"), and (5)
any credit enhancement or legal recourse provided upon an event of
nonappropriation or other termination of the lease; (C) the Advisor should
determine whether the obligation can be disposed of within seven days in the
ordinary course of business at approximately the amount at which the Portfolio
has valued it for purposes of calculating the Portfolio's net asset value,
taking into account the following factors: (1) the frequency of trades and
quotes; (2) the volatility of quotations and trade prices; (3) the number of
dealers willing to purchase or sell the security and the number of potential
purchasers; (4) dealer undertakings to make a market in the security; (5) the
nature of the security and the nature of the marketplace trades (e.g., the
time needed to dispose of the security, the method of soliciting offers, and
the mechanics of the transfer); (6) the rating of the security and the
financial condition and prospects of the issuer; and (7) other factors
relevant to the Portfolio's ability to dispose of the security; and (D) the
Advisor should have reasonable expectations that the municipal lease
obligation will maintain its liquidity throughout the time the instrument is
held by the Portfolio.
Obligations with Puts Attached
The Fund has authority to purchase securities at a price which would
result in a yield to maturity lower than that generally offered by the seller
at the time of purchase when it can acquire at the same time the right to sell
the securities back to the seller at an agreed upon price at any time during a
stated period or on a certain date. Such a right is generally denoted as a
"put." A Portfolio may not acquire obligations subject to puts if immediately
thereafter, with respect to 75% of the total amortized cost value of its
assets, that Portfolio would have more than 5% of its assets invested in
securities underlying puts from the same institution. A Portfolio may,
however, invest up to 10% of its assets in securities underlying unconditional
puts from the same institution. Unconditional puts are readily exercisable in
the event of a default in payment of principal or interest on the underlying
securities. The Money Market Portfolio must limit its portfolio investments,
including puts, to instruments of high quality as determined by a nationally
recognized statistical rating organization.
Temporary Investments
Short-term money market type investments consist of: obligations of
the U.S. Government, its agencies and instrumentalities; certificates of
deposit of banks with assets of one billion dollars or more; commercial paper
or other corporate notes of investment grade quality; and any of such items
subject to short-term repurchase agreements.
The Fund intends to minimize taxable income through investment, when
possible, in short-term tax-exempt securities. To minimize taxable income, the
Fund may also hold cash which is not earning income. It is a fundamental
policy of the Fund that during normal market conditions the Fund's assets be
invested so that at least 80% of the Fund's annual income will be tax-exempt.
When-Issued Purchases
Securities purchased on a when-issued basis and the securities held
in the Fund's Portfolios are subject to changes in market value based upon the
public's perception of the creditworthiness of the issuer and changes in the
level of interest rates (which will generally result in both changing in value
in the same way, i.e., both experiencing appreciation when interest rates
decline and depreciation when interest rates rise). Therefore, if in order to
achieve higher interest income, the Fund remains substantially fully invested
at the same time that it has purchased securities on a when-issued basis,
there will be a greater possibility that the market value of the Fund's assets
may vary. No new when-issued commitments will be made by a Portfolio if more
than 50% of that Portfolio's net assets would become so committed.
When the time comes to pay for when-issued securities, the Fund will
meet its obligations from then available cash flow, sale of securities or,
although it would not normally expect to do so, from sale of the when-issued
securities themselves (which may have a market value greater or less than the
Fund's payment obligation). Sale of securities to meet such obligations
carries with it a greater potential for the realization of capital losses and
capital gains which are not exempt from federal income tax.
INVESTMENT RESTRICTIONS
The foregoing investment objective and policies and the following
investment restrictions and fundamental policies may not be changed without
the consent of the holders of a majority of the Fund's outstanding shares,
including a majority of the shares of each Portfolio. Shares have equal rights
as to voting, except that only shares of a Portfolio are entitled to vote on
matters affecting only that Portfolio (such as changes in investment
objective, policies or restrictions). A majority of the shares means the
lesser of (i) 67% of the shares represented at a meeting at which more than
50% of the outstanding shares are represented or (ii) more than 50% of the
outstanding shares. Neither Portfolio may:
(1) Purchase common stocks, preferred stocks, warrants, or other equity
securities;
(2) Issue senior securities, borrow money, or pledge, mortgage, or hypothecate
its assets, except as may be necessary to secure borrowings from banks for
temporary or emergency (not leveraging) purposes and then in an amount not
greater than 10% of the value of the Portfolio's total assets at the time of
the borrowing. Investment securities will not be purchased while any
borrowings are outstanding;
(3) Sell securities short, purchase securities on margin, or write put or call
options. The Fund reserves the right to purchase securities with puts
attached. See "Obligations with Puts Attached";
(4) Underwrite the securities of other issuers, except to the extent that the
purchase of municipal obligations in accordance with the Fund's investment
objective and policies, either directly from the issuer, or from an
underwriter for an issuer, may be deemed an underwriting;
(5) Purchase securities which are subject to legal or contractual restrictions
on resale, i.e., restricted securities, or other securities which are not
readily marketable assets, including repurchase agreements not terminable
within seven days, with respect to no more than 10% of its total assets;
(6) Purchase or sell real estate, real estate investment trust securities,
commodities, or commodity contracts, or oil and gas interests, but this shall
not prevent the Fund from investing in municipal obligations secured by real
estate or interests therein;
(7) Purchase or retain securities of an issuer if those trustees of the Fund,
each of whom owns more than 1/2 of 1% of the outstanding securities of such
issuer, together own more than 5% of such outstanding securities;
(8) Make loans to others, except in accordance with the Fund's investment
objective and policies or pursuant to contracts providing for the compensation
of service providers by compensating balances;
(9) Invest in companies for the purpose of exercising control; or invest in
securities of other investment companies, except as they may be acquired as
part of a merger, consolidation or acquisition of assets, or in connection
with a trustee's/director's deferred compensation plan, as long as there is no
duplication of advisory fees;
(10) Invest more than 25% of its assets in the securities of any one issuer or
of issuers located within the same state, except that each Portfolio may
invest more than 25% of its assets in obligations issued or guaranteed by the
U.S. Government, its agencies or instrumentalities. For purposes of this
limitation, the entity which has the ultimate responsibility for the payment
of principal and interest on a particular security will be treated as its
issuer;
(11) Invest more than 25% of its assets in any particular industry or
industries, except that either Portfolio may invest more than 25% of its
assets in obligations issued or guaranteed by the U.S. Government, its
agencies or instrumentalities. Industrial development bonds, where the payment
of principal and interest is the responsibility of companies within the same
industry, are grouped together as an "industry";
(12) Invest more than 5% of the value of its total assets in securities where
the payment of principal and interest is the responsibility of a company or
companies with less than three years' operating history.
PURCHASES AND REDEMPTIONS OF SHARES
Share certificates will not be issued unless requested in writing by
the investor. No charge will be made for share certificate requests. No
certificates will be issued for fractional shares.
Draft writing is available for the Money Market Portfolio.
Shareholders wishing to use the draft writing service should complete the
signature card enclosed with the Investment Application. This service will be
subject to the customary rules and regulations governing checking accounts,
and the Portfolio reserves the right to change or suspend the service.
Generally, there is no charge to you for the maintenance of this service or
the clearance of drafts, but the 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 account
from any other of your identically registered accounts in Calvert money market
funds or Calvert Insured Plus. The Portfolio may charge a fee for this
service.
Drafts presented to the Custodian for payment which would require the
redemption of shares purchased by check or electronic funds transfer within
the previous 10 business days will not be honored.
When a payable through draft ("check") is presented for payment, a
sufficient number of full and fractional shares from the shareholder's account
to cover the amount of the draft will be redeemed at the net asset value next
determined. If there are insufficient shares in the shareholder's account, the
draft will be returned.
To change redemption instructions already given, shareholders must
send a written notice to Calvert Group, c/o NFDS, 6th Floor, 1004 Baltimore,
Kansas City, MO 64105, with a voided copy of a check for the bank wiring
instructions to be added. If a voided check does not accompany the request,
then the request must be signature guaranteed by a commercial bank, savings
and loan association, trust company, member firm of any national securities
exchange, or credit union. Further documentation may be required from
corporations, fiduciaries, and institutional investors.
The right of redemption may be suspended or the date of payment
postponed for any period during which the New York Stock Exchange is closed
(other than customary weekend and holiday closings), when trading on the New
York Stock Exchange is restricted, or an emergency exists, as determined by
the SEC, or if the Commission has ordered such a suspension for the protection
of shareholders. Redemption proceeds are normally mailed or wired the next
business day after a proper redemption request has been received, unless
redemptions have been suspended or postponed as described above.
Redemption proceeds are normally paid in cash. However, the Portfolio has the
right to redeem shares in assets other than cash for redemption amounts
exceeding, in any 90-day period, $250,000 or 1% of the net asset value of the
Portfolio, whichever is less.
REDUCED SALES CHARGES
The Limited-Term Portfolio imposes reduced sales charges for shares
in certain situations in which the Principal Underwriter (which offers the
Portfolio's shares continuously and on a "best efforts" basis) and the dealers
selling Limited-Term Portfolio shares may expect to realize significant
economies of scale with respect to such sales. Generally, sales costs do not
increase in proportion to the dollar amount of the shares sold; the per-dollar
transaction cost for a sale to an investor of shares worth, say, $5,000 is
generally much higher than the per-dollar cost for a sale of shares worth
$1,000,000. Thus, the applicable sales charge declines as a percentage of the
dollar amount of shares sold as the dollar amount increases.
When a shareholder agrees to make purchases of shares over a period
of time totaling a certain dollar amount pursuant to a Letter of Intent, the
Underwriter and selling dealers can expect to realize the economies of scale
applicable to that stated goal amount. Thus the Portfolio imposes the sales
charge applicable to the goal amount. Similarly, the Underwriter and selling
dealers also experience cost savings when dealing with existing Portfolio
shareholders, enabling the Portfolio to afford existing shareholders the Right
of Accumulation. The Underwriter and selling dealers can also expect to
realize economies of scale when making sales to the members of certain
qualified groups which agree to facilitate distribution of Portfolio shares to
their members. See "Exhibit A - Reduced Sales Charges" in the Limited-Term
Prospectus.
DIVIDENDS AND DISTRIBUTIONS
The Money Market Portfolio declares daily and pays monthly dividends
of its daily net income to shareholders of record as of the close of business
each business day, thus allowing daily compounding of dividends. The
Limited-Term Portfolio declares and pays monthly dividends of its net income
to shareholders of record as of the close of business on each designated
monthly record date. Dividends and distributions paid by the Limited-Term
Portfolio may differ among the classes. Net investment income consists of the
interest income earned on investments (adjusted for amortization of original
issue discounts or premiums or market premiums), less estimated expenses.
Capital gains, if any, are normally paid once a year and will be automatically
reinvested at net asset value in additional shares. Dividends and any
distributions are automatically reinvested in additional shares of the Fund,
unless you elect to have the dividends of $10 or more paid in cash (by check
or by Calvert Money Controller). You may also request to have your dividends
and distributions from the Portfolio invested in shares of any other Calvert
Group Fund, subject to the applicable sales charge for that Fund or Portfolio.
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.
Purchasers of shares of the Money Market Portfolio will begin
receiving dividends upon the date federal funds are received by the Fund.
Shareholders redeeming shares by telephone electronic funds transfer or
written request will receive dividends through the date that the redemption
request is received; Money Market Portfolio shareholders redeeming shares by
draft will receive dividends up to the date such draft is presented to the
Portfolio for payment.
TAX MATTERS
In 1997, the Portfolios did qualify and in 1998, the Portfolios
intend to qualify as a "regulated investment company" under Subchapter M of the
Internal Revenue Code as amended (the "Code"). By so qualifying, the Fund will
not be subject to federal income tax, nor to the federal excise tax imposed by
the Tax Reform Act of 1986 (the "Act"), to the extent that it distributes its
net investment income and realized capital gains.
The Portfolio's dividends of net investment income constitute
exempt-interest dividends on which shareholders are not generally subject to
federal income tax; however under the Act, dividends attributable to interest
on certain private activity bonds must be included in federal alternative
minimum taxable income for the purpose of determining liability (if any) for
individuals and for corporations. Each Portfolio's dividends derived from
taxable interest and distributions of net short-term capital gains, whether
taken in cash or reinvested in additional shares, are taxable to shareholders
as ordinary income and do not qualify for the dividends received deduction for
corporations.
A shareholder may also be subject to state and local taxes on
dividends and distributions from the Fund. The Fund will notify shareholders
annually about the federal tax status of dividends and distributions paid by
the Fund and the amount of dividends withheld, if any, during the previous
year.
The Code provides that interest on indebtedness incurred or continued
in order to purchase or carry shares of a regulated investment company which
distributes exempt-interest dividends during the year is not deductible.
Furthermore, entities or persons who are "substantial users" (or persons
related to "substantial users") of facilities financed by private activity
bonds should consult their tax advisors before purchasing shares of the Fund.
"Substantial user" is generally defined as including a "non-exempt person" who
regularly uses in trade or business a part of a facility financed from the
proceeds of private activity bonds.
Investors should note that the Code may require investors to exclude
the initial sales charge, if any, paid on the purchase of Limited-Term
Portfolio shares from the tax basis of those shares if the shares are
exchanged for shares of another Calvert Group Fund within 90 days of purchase.
This requirement applies only to the extent that the payment of the original
sales charge on the shares of the Portfolio causes a reduction in the sales
charge otherwise payable on the shares of the Calvert Group Fund acquired in
the exchange, and investors may treat sales charges excluded from the basis of
the original sales as incurred to acquire the new shares.
The Fund is required to withhold 31% of any long-term capital gain
dividends and 31% of each redemption transaction occurring in the Limited-Term
Portfolio if: (a) the shareholder's social security number or other taxpayer
identification number ("TIN") is not provided or an obviously incorrect TIN is
provided; (b) the shareholder does not certify under penalties of perjury that
the TIN provided is the shareholder's correct TIN and that the shareholder is
not subject to backup withholding under section 3406(a)(1)(C) of the Code
because of underreporting (however, failure to provide certification as to the
application of section 3406(a)(1)(C) will result only in backup withholding on
capital gain dividends, not on redemptions); or (c) the Fund is notified by
the Internal Revenue Service that the TIN provided by the shareholder is
incorrect or that there has been underreporting of interest or dividends by
the shareholder. Affected shareholders will receive statements at least
annually specifying the amount withheld.
In addition, the Limited-Term Portfolio is required to report to the
Internal Revenue Service the following information with respect to redemption
transactions in the Portfolio: (a) the shareholder's name, address, account
number and taxpayer identification number; (b) the total dollar value of the
redemptions; and (c) the Portfolio's identifying CUSIP number.
Certain shareholders are, however, exempt from the backup withholding
and broker reporting requirements. Exempt shareholders include: corporations;
financial institutions; tax-exempt organizations; individual retirement plans;
the U.S., a State, the District of Columbia, a U.S. possession, a foreign
government, an international organization, or any political subdivision,
agency, or instrumentality of any of the foregoing; U.S. registered
commodities or securities dealers; real estate investment trusts; registered
investment companies; bank common trust funds; certain charitable trusts; and
foreign central banks of issue. Non-resident aliens also are generally not
subject to either requirement but, along with certain foreign partnerships and
foreign corporations, may instead be subject to withholding under section 1441
of the Code. Shareholders claiming exemption from backup withholding and
broker reporting should call or write the Fund for further information.
VALUATION OF SHARES
Money Market Portfolio
The Money Market Portfolio's assets, including commitments to
purchase securities on a when-issued basis, are normally valued at their
amortized cost, which does not take into account unrealized capital gains or
losses. This involves valuing an instrument at its cost and thereafter
assuming a constant amortization to maturity of any discount or premium,
regardless of the impact of fluctuating interest rates on the market value of
the instrument. While this method provides certainty in valuation, it may
result in periods during which value, as determined by amortized cost, is
higher or lower than the price that would be received upon sale of the
instrument. During periods of declining interest rates, the daily yield on
shares of the Money Market Portfolio may tend to be higher than a like
computation made by a fund with identical investments utilizing a method of
valuation based upon market prices and estimates of market prices for all of
its portfolio instruments. Thus, if the use of amortized cost by the Money
Market Portfolio resulted in a lower aggregate portfolio value on a particular
day, a prospective investor in the Portfolio would be able to obtain a
somewhat higher yield than would result from investment in a fund utilizing
solely market values, and existing investors in the Portfolio would receive
less investment income. The converse would apply in a period of rising
interest rates.
Rule 2a-7 under the Investment Company Act of 1940 permits the Fund
to value the assets of the Money Market Portfolio at amortized cost if the
Money Market Portfolio maintains a dollar-weighted average maturity of 90 days
or less and only purchases obligations having remaining maturities of one year
or less. Rule 2a-7 requires, as a condition of its use, that the Money Market
Portfolio invest only in obligations determined by the Trustees to be of high
quality with minimal credit risks and further requires the Trustees to
establish procedures designed to stabilize, to the extent reasonably possible,
the Portfolio's price per share as computed for the purpose of sales and
redemptions at $1.00. Such procedures include review of the Portfolio's
investment holdings by the Trustees, at such intervals as they may deem
appropriate, to determine whether the Portfolio's net asset value calculated
by using available market quotations or equivalents deviates from $1.00 per
share based on amortized cost. If such deviation exceeds 0.50%, the Trustees
will promptly consider what action, if any, will be initiated. In the event
the Trustees determine that a deviation exists which may result in material
dilution or other unfair results to investors or existing shareholders, the
Trustees will take such corrective action as they regard as necessary and
appropriate, including: the sale of portfolio instruments prior to maturity to
realize capital gains or losses or to shorten average portfolio maturity; the
withholding of dividends or payment of distributions from capital or capital
gains; redemptions of shares in kind; or the establishment of a net asset
value per share based on available market quotations.
Limited-Term Portfolio
The Limited-Term Portfolio's assets are valued, utilizing the average
bid dealer market quotation as furnished by an independent pricing service.
Securities and other assets for which market quotations are not readily
available are valued based on the current market for similar securities or
assets, as determined in good faith by the Fund's Advisor under the
supervision of the Board of Trustees.
Valuations, market quotations and market equivalents are provided the
Portfolio by Kenny S&P Evaluation Services, a subsidiary of McGraw-Hill. The
use of Kenny as a pricing service by the Portfolio has been approved by the
Board of Trustees. Valuations provided by Kenny are determined without
exclusive reliance on quoted prices and take into consideration appropriate
factors such as institution-size trading in similar groups of securities,
yield, quality, coupon rate, maturity, type of issue, trading characteristics,
and other market data.
Each Portfolio determines the net asset value of its shares every
business day at the close of the regular session of the New York Stock
Exchange (generally, 4:00 p.m. Eastern time), and at such other times as may
be necessary or appropriate. The Portfolios do not determine net asset value
on certain national holidays or other days on which the New York Stock
Exchange is closed: New Year's Day, Martin Luther King Day, Presidents' Day,
Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and
Christmas Day.
Net Asset Value and Offering Price Per Share, 12/31/97
Money Market Portfolio
Class O ($__________/__________ shares) $1.00
Institutional Class ($_________/_________ shares) $1.00
Limited-Term Portfolio
Net asset value per share
($_________/_________) $__.__
Maximum sales charge
(1.00% of offering price) _.__
Offering price per share $__.__
CALCULATION OF YIELD AND TOTAL RETURN
Money Market Portfolio
From time to time the Money Market Portfolio advertises its "yield"
and "effective yield." Both yield figures are based on historical earnings and
are not intended to indicate future performance. Yield is calculated
separately by class. The "yield" of the Money Market Portfolio refers to the
income generated by an investment in the Portfolio over a particular base
period of time. The length and closing date of the base period will be stated
in the advertisement. If the base period is less than one year, the yield is
then "annualized." That is, the net change, exclusive of capital changes, in
the value of a share during the base period is divided by the net asset value
per share at the beginning of the period, and the result is multiplied by 365
and divided by the number of days in the base period. Capital changes excluded
from the calculation of yield are: (1) realized gains and losses from the sale
of securities, and (2) unrealized appreciation and depreciation. The Money
Market Portfolio's "effective yield" for a seven-day period is its annualized
compounded yield during the period calculated according to the following
formula:
Effective yield = (base period return + 1)365/7 - 1
For the seven-day period ended December 31, 1997, the Money Market Portfolio's
yield for Class O shares was _.__% and its effective yield was _.__%. For the
seven-day period ended December 31, 1997, the Money Market Portfolio's yield
for the Institutional Class of shares was _.__% and its effective yield was
_.__%.
The Money Market Portfolio also may advertise, from time to time, 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 exempt from regular federal income tax and multiplying the
exempt 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. For the seven-day period ended December 31, 1997,
the Money Market Portfolio's Class O tax equivalent yield, for an investor in
the 36% federal income tax bracket was _.__% and, for the 39.6% federal income
tax bracket, _.__%. For the seven-day period ended December 31, 1997, the
Money Market Portfolio Institutional Class' tax equivalent yield, for an
investor in the 36% federal income tax bracket was _.__% and, for the 39.6%
federal income tax bracket, _.__%.
Limited-Term Portfolio
From time to time, the Limited-Term Portfolio advertises its "total
return." Total return is calculated separately for each class. Total return is
historical in nature and is not intended to indicate future performance. Total
return will be quoted for the most recent one-year period, five-year period,
and period from inception of the Portfolio's offering of shares. Total return
quotations for periods in excess of one year represent the average annual
total return for the period included in the particular quotation. Total return
is a computation of the Portfolio's dividend yield, plus or minus realized or
unrealized capital appreciation or depreciation, less fees and expenses. All
total return quotations reflect the deduction of the Portfolio's maximum sales
charge, except quotations of "return without maximum load" which do not deduct
the sales charge and "actual return," which reflect deduction of the sales
charge only for those periods when a sales charge was actually imposed. Thus,
in the formula below, for return without maximum load, P = the entire $1,000
hypothetical initial investment and does not reflect the deduction of any
sales charge; for actual return, P = a hypothetical initial payment of $1,000.
Note: "Total Return" as quoted in the Financial Highlights section of the
Fund's Prospectus and Annual Report to Shareholders, per SEC instructions, does
not reflect deduction of the sales charge, and corresponds to "return without
maximum load" as referred to herein. Return without maximum load should be
considered only by investors, such as participants in certain pension plans,
to whom the sales charge does not apply, or for purposes of comparison only
with comparable figures which also do not reflect sales charges, such as
Lipper averages. Total return is computed according to the following formula:
P(1 + T)n = ERV
where P = a hypothetical initial payment of $1,000; T = total return; n =
number of years; and ERV = the ending redeemable value of a hypothetical
$1,000 payment made at the beginning of the 1, 5 or 10 year periods at the end
of such periods (or portions thereof, if applicable).
Returns for the periods indicated are as follows:
With Max. Load W/O Max. Load
One Year _.__% _.__%
Five Years _.__% _.__%
Ten Years _.__% _.__%
The Limited-Term Portfolio also advertises, from time to time, its
"yield" and "tax equivalent yield." As with total return, both yield figures
are historical and are not intended to indicate future performance.
Unlike the yield quotations for the Money Market Portfolio, "yield"
quotations for the Limited-Term Portfolio refer to the aggregate imputed
yield-to-maturity of each of the Portfolio's investments based on the market
value as of the last day of a given thirty-day or one-month period less
accrued expenses (net of reimbursement), divided by the average daily number
of outstanding shares entitled to receive dividends times the maximum offering
price on the last day of the period (so that the effect of the sales charge is
included in the calculation), compounded on a "bond equivalent," or
semi-annual, basis. The Limited-Term Portfolio's yield is computed according
to the following formula:
Yield = 2[(a-b/cd+1)6 - 1]
where a = dividends and interest earned during the period; b = expenses
accrued for the period (net of reimbursement); c = the average daily number of
shares outstanding during the period that were entitled to receive dividends;
and d = the maximum offering price per share on the last day of the period.
Using this calculation, the Limited-Term Portfolio's yield for the month ended
December 31, 1997 was _.__%.
The tax equivalent yield is the yield an investor would be required
to obtain from taxable investments to equal the Limited-Term Portfolio's
yield, all or a portion of which may be exempt from federal income taxes. The
tax equivalent yield is computed for each class by taking the portion of the
yield exempt from regular federal income tax and multiplying the exempt 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. For the thirty-day period ended December 31, 1996, the
Portfolio's tax equivalent yield was _.__% for an investor in the 36% federal
income tax bracket, and _.__% for an investor in the 39.6% federal income tax
bracket.
ADVERTISING
The Fund or its affiliates may provide information such as, but not
limited to, the economy, investment climate, investment principles,
sociological conditions and political ambiance. Discussion may include
hypothetical scenarios or lists of relevant factors designed to aid the
investor in determining whether the Fund is compatible with the investor's
goals. The Fund may list portfolio holdings or give examples or securities
that may have been considered for inclusion in the Portfolio, whether held or
not.
The Fund or its affiliates may supply comparative performance data
and rankings from independent sources such as Donoghue's Money Fund Report,
Bank Rate Monitor, Money, Forbes, Lipper Analytical Services, Inc., CDA
Investment Technologies, Inc., Wiesenberger Investment Companies Service,
Russell 2000/Small Stock Index, Mutual Fund Values Morningstar Ratings, Mutual
Fund Forecaster, Barron's, The Wall Street Journal, and Schabacker Investment
Management, Inc. Such averages generally do not reflect any front- or back-end
sales charges that may be charged by Funds in that grouping. The Fund may also
cite to any source, whether in print or on-line, such as Bloomberg, in order
to acknowledge origin of information. The Fund may compare itself or its
portfolio holdings to other investments, whether or not issued or regulated by
the securities industry, including, but not limited to, certificates of
deposit and Treasury notes. The Fund, its Advisor, and its affiliates reserve
the right to update performance rankings as new rankings become available.
Calvert Group is the nation's leading family of socially responsible
mutual funds, both in terms of socially responsible mutual fund assets under
management, and number of socially responsible mutual fund portfolios offered
(source: Social Investment Forum, November 30, 1997). Calvert Group was also
the first to offer a family of socially responsible mutual fund portfolios.
TRUSTEES AND OFFICERS
RICHARD L. BAIRD, JR., Trustee. Mr. Baird is Executive Vice President
of Family Health Council, Inc. in Pittsburgh, Pennsylvania, a non-profit
corporation which provides family planning services, nutrition, maternal/child
health care, and various health screening services. Mr. Baird is a
trustee/director of each of the investment companies in the Calvert Group of
Funds, except for Acacia Capital Corporation, Calvert New World Fund and
Calvert World Values Fund. DOB: 05/09/48. Address: 211 Overlook Drive,
Pittsburgh, Pennsylvania 15216.
FRANK H. BLATZ, JR., Esq., Trustee. Mr. Blatz is a partner in the law
firm of Snevily, Ely, Williams, Gurrieri & Blatz. He was formerly a partner
with Abrams, Blatz, Gran, Hendricks & Reina, P.A. DOB: 10/29/35. Address: 308
East Broad Street, PO Box 2007, Westfield, New Jersey 07091.
FREDERICK T. BORTS, M.D., Trustee. Dr. Borts is a radiologist with
Kaiser Permanente. Prior to that, he was a radiologist at Bethlehem Medical
Imaging in Allentown, Pennsylvania. DOB: 07/23/49. Address: 2040 Nuuanu Avenue
#1805, Honolulu, Hawaii, 96817.
*CHARLES E. DIEHL, Trustee. Mr. Diehl is Vice President and Treasurer
Emeritus of the George Washington University, and has retired from University
Support Services, Inc. of Herndon, Virginia. He is also a Director of Acacia
Mutual Life Insurance Company. DOB: 10/13/22. Address: 1658 Quail Hollow
Court, McLean, Virginia 22101.
DOUGLAS E. FELDMAN, M.D., Trustee. Dr. Feldman practices head and
neck reconstructive surgery in the Washington, D.C., metropolitan area. DOB:
05/23/48. Address: 7536 Pepperell Drive, Bethesda, Maryland 20817.
PETER W. GAVIAN, CFA, Trustee. Mr. Gavian is a principal of Gavian De
Vaux Associates, an investment banking firm. He was formerly President of
Corporate Finance of Washington, Inc. DOB: 12/08/32. Address: 1953 Gallows
Road, Suite 130, Vienna, Virginia 22201.
JOHN G. GUFFEY, JR., Trustee. Mr. Guffey is chairman of the Calvert
Social Investment Foundation, organizing director of the Community Capital
Bank in Brooklyn, New York, and a financial consultant to various
organizations. In addition, he is a Director of the Community Bankers Mutual
Fund of Denver, Colorado, and the Treasurer and Director of Silby, Guffey, and
Co., Inc., a venture capital firm. Mr. Guffey is a trustee/director of each of
the other investment companies in the Calvert Group of Funds, except for
Acacia Capital Corporation and Calvert New World Fund. DOB: 05/15/48. Address:
7205 Pomander Lane, Chevy Chase, Maryland 20815.
M. CHARITO KRUVANT, Trustee. Ms. Kruvant is President of Creative
Associates International, Inc., a firm that specializes in human resources
development, information management, public affairs and private enterprise
development. DOB: 12/08/45. Address: 5301 Wisconsin Avenue, N.W. Washington,
D.C. 20015.
ARTHUR J. PUGH, Trustee. Mr. Pugh serves as a Director of Acacia
Federal Savings Bank. DOB: 09/24/37. Address: 4823 Prestwick Drive, Fairfax,
Virginia 22030.
*DAVID R. ROCHAT, Senior Vice President and Trustee. Mr. Rochat is
Executive Vice President of Calvert Asset Management Company, Inc., Director
and Secretary of Grady, Berwald and Co., Inc., and Director and President of
Chelsea Securities, Inc. DOB: 10/07/37. Address: Box 93, Chelsea, Vermont
05038.
*D. WAYNE SILBY, Esq., Trustee. Mr. Silby is a trustee/director of each of the
investment companies in the Calvert Group of Funds, except for Acacia Capital
Corporation and Calvert New World Fund. Mr. Silby is an officer, director and
shareholder of Silby, Guffey & Company, Inc., which serves as general partner
of Calvert Social Venture Partners ("CSVP"). CSVP is a venture capital firm
investing in socially responsible small companies. He is also a Director of
Acacia Mutual Life Insurance Company. DOB: 07/20/48. Address: 1715 18th
Street, N.W., Washington, D.C. 20009.
*BARBARA J. KRUMSIEK, President and Trustee. Ms. Krumsiek serves as President,
Chief Executive Officer and Vice Chairman of Calvert Group, Ltd. and as an
officer and director of each of its affiliated companies. She is a director of
Calvert-Sloan Advisers, L.L.C., and a trustee/director of each of the
investment companies in the Calvert Group of Funds. DOB: 08/09/52.
RENO J. MARTINI, Senior Vice President. Mr. Martini is Senior Vice
President of Calvert Group, Ltd., and Senior Vice President and Chief
Investment Officer of Calvert Asset Management Company, Inc. Mr. Martini is
also a director and President of Calvert-Sloan Advisers, L.L.C., and a
director and officer of Calvert New World Fund. DOB: 01/13/50.
RONALD M. WOLFSHEIMER, CPA, Treasurer. Mr. Wolfsheimer is Senior Vice
President and Controller of Calvert Group, Ltd. and its subsidiaries and an
officer of each of the other investment companies in the Calvert Group of
Funds. Mr. Wolfsheimer is Vice President and Treasurer of Calvert-Sloan
Advisers, L.L.C., and a director of Calvert Distributors, Inc. DOB: 07/24/52.
WILLIAM M. TARTIKOFF, Esq., Vice President and Assistant Secretary.
Mr. Tartikoff is an officer of each of the investment companies in the Calvert
Group of Funds, and is Senior Vice President, Secretary, and General Counsel
of Calvert Group, Ltd., and each of its subsidiaries. Mr. Tartikoff is also
Vice President and Secretary of Calvert-Sloan Advisers, L.L.C., a director of
Calvert Distributors, Inc., and is an officer of Acacia National Life
Insurance Company. DOB: 08/12/47.
DANIEL K. HAYES, Vice President. Mr. Hayes is Vice President of
Calvert Asset Management Company, Inc., and is an officer of each of the other
investment companies in the Calvert Group of Funds, except for Calvert New
World Fund, Inc. DOB: 09/09/50.
SUSAN WALKER BENDER, Esq., Assistant Secretary. Ms. Bender is
Associate General Counsel of Calvert Group and an officer of each of its
subsidiaries and Calvert-Sloan Advisers, L.L.C. She is also an officer of each
of the other investment companies in the Calvert Group of Funds. DOB: 01/29/59.
BETH-ANN ROTHKATHERINE STONER, Esq., Assistant Secretary. Ms. Stoner
is Associate General Counsel of Calvert Group and an officer of each of its
subsidiaries and Calvert-Sloan Advisers, L.L.C. She is also an officer of each
of the other investment companies in the Calvert Group of Funds. DOB: 10/21/56.
LISA CROSSLEY NEWTON, Esq., Assistant Secretary and Compliance
Officer. Ms. Newton is Associate General Counsel of Calvert Group and an
officer of each of its subsidiaries and Calvert-Sloan Advisers, L.L.C. She is
also an officer of each of the other investment companies in the Calvert Group
of Funds. DOB: 12/31/61.
IVY WAFFORD DUKE, Esq., Assistant Secretary. Ms. Duke is Assistant
Counsel of Calvert Group and an officer of each of its subsidiaries and
Calvert-Sloan Advisers, L.L.C. She is also an officer of each of the other
investment companies in the Calvert Group of Funds. DOB: 09/07/68.
The address of directors and officers, unless otherwise noted, is 4550
Montgomery Avenue, Suite 1000N, Bethesda, Maryland 20814. Trustees and
officers of the Fund as a group own less than 1% of the Fund's outstanding
shares. Trustees marked with an *, above, are "interested persons" of the
Fund, under the Investment Company Act of 1940.
Each of the above directors/trustees and officers is a
director/trustee or officer of each of the investment companies in the Calvert
Group of Funds with the exception of Calvert Social Investment Fund, of which
only Messrs. Baird, Guffey and Silby and Ms. Krumsiek are among the trustees,
Acacia Capital Corporation, of which only Messrs. Blatz, Diehl and Pugh and
Ms. Krumsiek are among the directors, Calvert World Values Fund, Inc., of
which only Messrs. Guffey and Silby and Ms. Krumsiek are among the directors,
and Calvert New World Fund, Inc., of which only Ms. Krumsiek and Mr. Martini
are among the directors.
The Audit Committee of the Board is composed of Messrs. Baird, Blatz,
Feldman, Guffey and Pugh. The Board's Investment Policy Committee is composed
of Messrs. Borts, Diehl, Gavian, Rochat and Silby and Ms. Krumsiek.
During 1997, Trustees of the Fund not affiliated with the Fund's
Advisor were paid $________ and $___________ by the Money Market and
Limited-Term Portfolios, respectively. Trustees of the Fund not affiliated
with the Advisor currently receive an annual fee of $20,500 for service as a
member of the Board of Trustees of the Calvert Group of Funds plus a fee of
$750 to $1500 for each Board and Committee meeting attended; such fees are
allocated among the Funds on the basis of their net assets.
Trustees of the Fund not affiliated with the Fund's Advisor may elect
to defer receipt of all or a percentage of their fees and invest them in any
fund in the Calvert Family of Funds through the Trustees Deferred Compensation
Plan (shown as "Pension or Retirement Benefits Accrued as part of Fund
Expenses," below). Deferral of the fees is designed to maintain the parties in
the same position as if the fees were paid on a current basis. Management
believes this will have a negligible effect on the Fund's assets, liabilities,
net assets, and net income per share, and will ensure that there is no
duplication of advisory fees.
Trustee Compensation Table
Fiscal Year 1997 Aggregate Pension or Total
(unaudited numbers) Compensation Retirement Compensation
from Registrant Benefits from Registrant
for Service Accrued as and Fund
as Trustee part of Complex paid to
Registrant Trustee**
Expenses*
Name of Trustee
Richard L. Baird, Jr. $ $0 $34,450
Frank H. Blatz, Jr. $ $ $46,000
Frederick T. Borts $ $0 $32,500
Charles E. Diehl $ $ $44,500
Douglas E. Feldman $ $0 $32,500
Peter W. Gavian $ $ $38,500
John G. Guffey, Jr. $ $0 $61,615
M. Charito Kruvant $ $0 $36,250
Arthur J. Pugh $ $ $48,250
D. Wayne Silby $ $0 $62,830
*Messrs. Blatz, Diehl, Gavian and Pugh have chosen to defer a portion of their
compensation. As of December 31, 1997, total deferred compensation, including
dividends and capital appreciation, was $___________, $___________, $________,
and $___________, for each trustee, respectively.
**As of December 31, 1997, the Fund Complex consists of nine (9) registered
investment companies.
INVESTMENT ADVISOR
The Fund's Investment Advisor is Calvert Asset Management Company,
Inc., 4550 Montgomery Avenue, Suite 1000N, Bethesda, Maryland 20814, a
subsidiary of Calvert Group, Ltd., which is a subsidiary of Acacia Mutual Life
Insurance Company of Washington, D.C. ("Acacia Mutual").
The Advisory Contract between the Fund and the Advisor will remain in
effect indefinitely, provided continuance is approved at least annually by the
vote of the holders of a majority of the outstanding shares of the Fund, or by
the Trustees of the Fund; and further provided that such continuance is also
approved annually by the vote of a majority of the Trustees of the Fund who
are not parties to the Contract or interested persons of such parties, cast in
person at a meeting called for the purpose of voting on such approval. The
Contract may be terminated without penalty by either party on 60 days' prior
written notice; it automatically terminates in the event of its assignment.
Under the Contract, the Advisor manages the investment and
reinvestment of the Fund's assets, subject to the direction and control of the
Fund's Board of Trustees. For its services, the Advisor receives an annual fee
of:
i) with respect to the Money Market Portfolio, 0.50% of the first
$500 million of such Portfolio's average daily net assets, 0.45% of the next
$500 million of such assets, and 0.40% of all such assets over $1 billion; and
ii) with respect to the Limited-Term Portfolio, 0.60% of the first
$500 million of the Portfolio's average daily net assets, 0.50% of the next
$500 million of such assets, and 0.40% of all such assets over $1 billion.
The advisory fee is payable monthly. The Advisor reserves the right
(i) to waive all or a part of its fee and (ii) to compensate, at its expense,
broker-dealers in consideration of their promotional and administrative
services.
The Advisor provides the Fund with investment advice and research,
pays the salaries and fees of all Trustees and executive officers of the Fund
who are principals of the Advisor, and pays certain Fund advertising and
promotional expenses. The Fund pays all other administrative and operating
expenses, including: custodial fees; shareholder servicing, dividend
disbursing and transfer agency fees; administrative service fees; federal and
state securities registration fees; insurance premiums; trade association
dues; interest, taxes and other business fees; legal and audit fees; and
brokerage commissions and other costs associated with the purchase and sale of
portfolio securities.
The Advisor may voluntarily reimburse the Money Market and
Limited-Term Portfolios for expenses. The advisory fees paid by the Money
Market Portfolio to Calvert Asset Management Company were $7,481,925,
$7,776,716, and $___________, for years 1995, 1996, and 1997, respectively.
The advisory fees paid by the Limited-Term Portfolio to Calvert Asset
Management Company were $3,149,849, $3,110,764, and $_________, for years
1995, 1996, and 1997, respectively.
ADMINISTRATIVE SERVICES
Calvert Administrative Services Company, a wholly-owned subsidiary of
Calvert Group, Ltd., has been retained by the Fund to provide certain
administrative services necessary to the conduct of the Fund's affairs. Such
services include the preparation of corporate and regulatory reports and
filings, portfolio accounting, and the daily determination of net investment
income and net asset value per share. Calvert Administrative Services Company
receives a fee of $200,000 per year for providing such services, allocated
among Portfolios based on assets. The service fees paid by the Money Market
Portfolio to Calvert Administrative Services Company were $124,836, $128,255,
and $_______, for years 1995, 1996, and 1997, respectively. The service fees
paid by the Limited-Term Portfolio to Calvert Administrative Services Company
were $39,445, $38,242, and $_______, for years 1995, 1996, and 1997,
respectively.
TRANSFER AND SHAREHOLDER SERVICING AGENTS
National Financial Data Services, Inc. ("NFDS"), a subsidiary of
State Street Bank & Trust, has been retained by the Fund to act as transfer
agent and dividend disbursing agent. These responsibilities include:
responding to certain shareholder inquiries and instructions, crediting and
debiting shareholder accounts for purchases and redemptions of Fund shares and
confirming such transactions, and daily updating of shareholder accounts to
reflect declaration and payment of dividends.
Calvert Shareholder Services, Inc., a subsidiary of Calvert Group,
Ltd., and Acacia Mutual, has been retained by the Fund to act as shareholder
servicing agent. Shareholder servicing responsibilities include responding to
shareholder inquiries and instructions concerning their accounts, entering any
telephoned purchases or redemptions into the NFDS system, maintenance of
broker-dealer data, and preparing and distributing statements to shareholders
regarding their accounts. Calvert Shareholder Services, Inc. was the sole
transfer agent prior to January 1, 1998.
For these services, NFDS and Calvert Shareholder Services, Inc.
receive a total fee of $14.00 per shareholder account for Limited-Term and
$22.00 for each Money Market shareholder account, and $1.60 per shareholder
transaction.
INDEPENDENT ACCOUNTANTS AND CUSTODIANS
Coopers & Lybrand, L.L.P. has been selected by the Board of Trustees
to serve as independent accountants for fiscal year 1998. State Street Bank &
Trust Company, N.A., 225 Franklin Street, Boston, MA 02110, currently serves
as custodian of the Portfolio's investments. First National Bank of Maryland,
25 South Charles Street, Baltimore, Maryland 21203 also serves as custodian of
certain of the Portfolio's cash assets. Neither custodian has any part in
deciding the Portfolio's investment policies or the choice of securities that
are to be purchased or sold for the Portfolio.
METHOD OF DISTRIBUTION
The Portfolios have entered into a principal underwriting agreement
with Calvert Distributors Inc. ("CDI"). Pursuant to the agreement, CDI serves
as distributor and principal underwriter for the Portfolios. CDI bears all its
expenses of providing services pursuant to the agreement, including payment of
any commissions and service fees. Prior to the termination of Class C shares
for the Limited Term Portfolio, CDI was entitled to receive a service fee and
a distribution fee, payable monthly pursuant to the Limited-Term Portfolio's
Distribution Plan, of 0.25%, respectively, of the Portfolio's average daily
net assets. For the 1997 fiscal year, the Distribution Plan expenses totaled
$_________ for Class C Shares of the Limited-Term Portfolio. CDI also receives
all sales charges imposed on Limited-Term Portfolio Class A shares and
compensates broker-dealer firms for sales of shares at a maximum commission
rate of 1.50%, as specified in the table of applicable sales charges (see
"Alternative Sales Options" in the Prospectus). For the fiscal years ended
December 31, 1995, 1996, and 1997, CDI received sales charges in excess of the
dealer reallowance of $10,900, $0, and $____, respectively.
The Limited-Term Portfolio's Class C Shares Distribution Plan was
approved by the Board of Trustees, including the Trustees who are not
"interested persons" of the Fund (as that term is defined in the Investment
Company Act of 1940) and who have no direct or indirect financial interest in
the operation of the Plan or in any agreements related to the Plan. The
selection and nomination of the Trustees who are not interested persons of the
Fund is committed to the discretion of such disinterested Trustees. In
establishing the Plan, the Trustees considered various factors including the
amount of the distribution fee. The Trustees determined that there is a
reasonable likelihood that the Plan will benefit the Portfolios and its
shareholders.
The Plan may be terminated by vote of a majority of the
non-interested Trustees who have no direct or indirect financial interest in
the Plan, or by vote of a majority of the outstanding shares of the Fund. Any
change in the Plan that would materially increase the distribution cost to the
Fund requires approval of the shareholders of the affected class; otherwise,
the Plan may be amended by the Trustees, including a majority of the
non-interested Trustees as described above.
The Plan will continue in effect indefinitely, if not sooner
terminated in accordance with its terms. Thereafter, the Plan will continue in
effect for successive one year periods provided that such continuance is
annually approved by (i) the vote of a majority of the Trustees who are not
parties to the Plan or interested persons of any such party and who have no
direct or indirect financial interest in the Plan, and (ii) the vote of a
majority of the entire Board of Trustees.
Apart from the Plan, the Advisor, at its expense, may incur costs and
pay expenses associated with the distribution of shares of the Portfolios. The
Portfolios paid no expenses pursuant to the Plan during fiscal year 1995, and
paid $48,520 and $_______, in addition to the commissions charged on sales of
Limited-Term A shares in 1996 and 1997, respectively.
PORTFOLIO TRANSACTIONS
Portfolio transactions are undertaken on the basis of their
desirability from an investment standpoint. Investment decisions and the
choice of brokers and dealers are made by the Fund's Advisor under the
direction and supervision of the Fund's Board of Trustees.
For the fiscal years ended December 31, 1995, 1996, and 1997, the
portfolio turnover rates of the Limited-Term Portfolio were 33%, 45%, and
___%, respectively. Broker-dealers who execute portfolio transactions on
behalf of the Fund are selected on the basis of their professional capability
and the value and quality of their services. The Advisor reserves the right to
place orders for the purchase or sale of portfolio securities with
broker-dealers who have sold shares of the Fund or who provide the Fund with
statistical, research, or other information and services. Although any
statistical research or other information and services provided by
broker-dealers may be useful to the Advisor, the dollar value of such
information and services is generally indeterminable, and its availability or
receipt does not serve to materially reduce the Advisor's normal research
activities or expenses. Brokerage commissions paid to any officer, trustee or
Advisory Council member of the Fund or any of their affiliates, or
broker-dealers were $0, $48,520, and $_____, for the years ended December 31,
1995, 1996, and 1997, respectively.
The Advisor may also execute portfolio transactions with or through
broker-dealers who have sold shares of the Fund. However, such sales will not
be a qualifying or disqualifying factor in a broker-dealer's selection nor
will the selection of any broker-dealer be based on the volume of Fund shares
sold. The Advisor may compensate, at its expense, such broker-dealers in
consideration of their promotional and administrative services.
GENERAL INFORMATION
The Fund was organized as a Massachusetts business trust on October
20, 1980. The other series of the Fund include the Long-Term Portfolio,
California Money Market Portfolio, and the Vermont Municipal Portfolio. The
Fund's Declaration of Trust contains an express disclaimer of shareholder
liability for acts or obligations of the Fund. The shareholders of a
Massachusetts business trust might, however, under certain circumstances, be
held personally liable as partners for its obligations. The Declaration of
Trust provides for indemnification and reimbursement of expenses out of Fund
assets for any shareholder held personally liable for obligations of the Fund.
The Declaration of Trust provides that the Fund shall, upon request, assume
the defense of any claim made against any shareholder for any act or
obligation of the Fund and satisfy any judgment thereon. The Declaration of
Trust further provides that the Fund may maintain appropriate insurance (for
example, fidelity bonding and errors and omissions insurance) for the
protection of the Fund, its shareholders, Trustees, officers, employees, and
agents to cover possible tort and other liabilities. Thus, the risk of a
shareholder incurring financial loss on account of shareholder liability is
limited to circumstances in which both inadequate insurance exists and the
Fund itself is unable to meet its obligations.
Each share of each series represents an equal proportionate interest
in that series with each other share and is entitled to such dividends and
distributions out of the income belonging to such series as declared by the
Board. The Money Market Portfolio offers Class O (offered in the Calvert
Tax-Free Reserves Money Market Prospectus) and the Institutional Class
(offered in a separate prospectus). The two classes represent interests in the
same portfolio of investments and are identical in all respects, except: (a)
the classes may have different transfer agency fees; (b) postage and delivery,
printing and stationery expenses will be separately allocated; and (c) the
classes will have different dividend rates due solely to the effects of (a)
and (b) above. Each class represents interests in the same portfolio of
investments. Upon any liquidation of the Funds, shareholders of each class are
entitled to share pro rata in the net assets belonging to that series
available for distribution.
General costs, expenses, and liabilities of the Fund attributable to
a particular Portfolio are borne by that Portfolio; costs, expenses, and
liabilities not attributable to a particular Portfolio are allocated between
the Fund's Portfolios on the basis of the respective net assets of each
Portfolio.
The Portfolios will send their shareholders unaudited semi-annual and
audited annual reports that will include the Portfolios' net asset value per
share, portfolio securities, income and expenses, and other financial
information.
This Statement of Additional Information does not contain all the
information in the Fund's registration statement. The registration statement
is on file with the Securities and Exchange Commission and is available to the
public.
FINANCIAL STATEMENTS
The audited financial statements in the Portfolios' Annual Report to
Shareholders dated December 31, 1997, are expressly incorporated by reference
and made a part of this Statement of Additional Information. A copy of the
Annual Report may be obtained free of charge by writing or calling the
Portfolios.
APPENDIX
Municipal Obligations
Municipal obligations are debt obligations issued by states, cities,
municipalities, and their agencies to obtain funds for various public
purposes. Such purposes include the construction of a wide range of public
facilities, the refunding of outstanding obligations, the obtaining of funds
for general operating expenses, and the lending of funds to other public
institutions and facilities. In addition, certain types of industrial
development bonds are issued by or on behalf of public authorities to obtain
funds for many types of local, privately operated facilities. Such debt
instruments are considered municipal obligations if the interest paid on them
is exempt from federal income tax in the opinion of bond counsel to the
issuer. Although the interest paid on the proceeds from private activity bonds
used for the construction, equipment, repair or improvement of privately
operated industrial or commercial facilities may be exempt from federal income
tax, current federal tax law places substantial limitations on the size of
such issues.
Municipal obligations are generally classified as either "general
obligation" or "revenue'' bonds. General obligation bonds are secured by the
issuer's pledge of its faith, credit and taxing power for the payment of
principal and interest. Revenue bonds are payable from the revenues derived
from a particular facility or class of facilities or, in some cases, from the
proceeds of a special excise tax or other specific revenue source, but not
from the general taxing power. Tax-exempt industrial development bonds are in
most cases revenue bonds and do not generally carry the pledge of the credit
of the issuing municipality. There are, of course, variations in the security
of municipal obligations, both within a particular classification and among
classifications.
Municipal obligations are generally traded on the basis of a quoted
yield to maturity, and the price of the security is adjusted so that relative
to the stated rate of interest it will return the quoted rate to the purchaser.
Short-term and limited-term municipal obligations include Tax
Anticipation Notes, Revenue Anticipation Notes, Bond Anticipation Notes,
Construction Loan Notes, and Discount Notes. The maturities of these
instruments at the time of issue generally will range between three months and
one year. Pre-Refunded Bonds with longer nominal maturities that are due to be
retired with the proceeds of an escrowed subsequent issue at a date within one
year and three years of the time of acquisition are also considered short-term
and limited-term municipal obligations.
Municipal Bond and Note Ratings
Description of Moody's Investors Service, Inc.'s ratings of state and
municipal notes:
Moody's ratings for state and municipal notes and other short-term
obligations are designated Moody's Investment Grade ("MIG"). This distinction
is in recognition of the differences between short-term credit risk and
long-term risk.
MIG 1: Notes bearing this designation are of the best quality,
enjoying strong protection from established cash flows of funds for their
servicing or from established and broad-based access to the market for
refinancing, or both.
MIG2: Notes bearing this designation are of high quality, with
margins of protection ample although not so large as in the preceding group.
MIG3: Notes bearing this designation are of favorable quality, with
all security elements accounted for but lacking the undeniable strength of the
preceding grades. Market access for refinancing, in particular, is likely to
be less well established.
MIG4: Notes bearing this designation are of adequate quality,
carrying specific risk but having protection commonly regarded as required of
an investment security and not distinctly or predominantly speculative.
Description of Moody's Investors Service Inc.'s/Standard & Poor's municipal
bond ratings:
Aaa/AAA: Best quality. These bonds carry the smallest degree of
investment risk and are generally referred to as "gilt edge." Interest
payments are protected by a large or by an exceptionally stable margin and
principal is secure. This rating indicates an extremely strong capacity to pay
principal and interest.
Aa/AA: Bonds rated AA also qualify as high-quality debt obligations.
Capacity to pay principal and interest is very strong, and in the majority of
instances they differ from AAA issues only in small degree. They are rated
lower than the best bonds because margins of protection may not be as large as
in Aaa securities, fluctuation of protective elements may be of greater
amplitude, or there may be other elements present which make long-term risks
appear somewhat larger than in Aaa securities.
A/A: Upper-medium grade obligations. Factors giving security to
principal and interest are considered adequate, but elements may be present
which make the bond somewhat more susceptible to the adverse effects of
circumstances and economic conditions.
Baa/BBB: Medium grade obligations; adequate capacity to pay principal
and interest. Whereas they normally exhibit adequate protection parameters,
adverse economic conditions or changing circumstances are more likely to lead
to a weakened capacity to pay principal and interest for bonds in this
category than for bonds in the A category.
Ba/BB, B/B, Caa/CCC, Ca/CC: Debt rated in these categories is
regarded as predominantly speculative with respect to capacity to pay interest
and repay principal. There may be some large uncertainties and major risk
exposure to adverse conditions. The higher the degree of speculation, the
lower the rating.
C/C: This rating is only for no-interest income bonds.
D: Debt in default; payment of interest and/or principal is in
arrears.
LETTER OF INTENT
Date
Calvert Distributors, Inc.
4550 Montgomery Avenue
Bethesda, MD 20814
Ladies and Gentlemen:
By signing this Letter of Intent, or affirmatively marking the Letter
of Intent option on my Fund Account Application Form, I agree to be bound by
the terms and conditions applicable to Letters of Intent appearing in the
Prospectus and the Statement of Additional Information for the Fund and the
provisions described below as they may be amended from time to time by the
Fund. Such amendments will apply automatically to existing Letters of Intent.
I intend to invest in the shares of:_____________________ (Fund
or Portfolio name) during the thirteen (13) month period from the date of my
first purchase pursuant to this Letter (which cannot be more than ninety (90)
days prior to the date of this Letter or my Fund Account Application Form,
whichever is applicable), an aggregate amount (excluding any reinvestments of
distributions) of at least fifty thousand dollars ($50,000) which, together
with my current holdings of the Fund (at public offering price on date of this
Letter or my Fund Account Application Form, whichever is applicable), will
equal or exceed the amount checked below:
__ $50,000 __ $100,000 __ $250,000 __ $500,000 __ $1,000,000
Subject to the conditions specified below, including the terms of
escrow, to which I hereby agree, each purchase occurring after the date of
this Letter will be made at the public offering price applicable to a single
transaction of the dollar amount specified above, as described in the Fund's
prospectus. "Fund" in this Letter of Intent shall refer to the Fund or
Portfolio, as the case may be. No portion of the sales charge imposed on
purchases made prior to the date of this Letter will be refunded.
I am making no commitment to purchase shares, but if my purchases
within thirteen months from the date of my first purchase do not aggregate the
minimum amount specified above, I will pay the increased amount of sales
charges prescribed in the terms of escrow described below. I understand that
4.75% of the minimum dollar amount specified above will be held in escrow in
the form of shares (computed to the nearest full share). These shares will be
held subject to the terms of escrow described below.
From the initial purchase (or subsequent purchases if necessary),
4.75% of the dollar amount specified in this Letter shall be held in escrow in
shares of the Fund by the Fund's transfer agent. For example, if the minimum
amount specified under the Letter is $50,000, the escrow shall be shares
valued in the amount of $2,375 (computed at the public offering price adjusted
for a $50,000 purchase). All dividends and any capital gains distribution on
the escrowed shares will be credited to my account.
If the total minimum investment specified under the Letter is
completed within a thirteen month period, escrowed shares will be promptly
released to me. However, shares disposed of prior to completion of the
purchase requirement under the Letter will be deducted from the amount
required to complete the investment commitment.
Upon expiration of this Letter, the total purchases pursuant to the
Letter are less than the amount specified in the Letter as the intended
aggregate purchases, Calvert Distributors, Inc. ("CDI") will bill me for an
amount equal to the difference between the lower load I paid and the dollar
amount of sales charges which I would have paid if the total amount purchased
had been made at a single time. If not paid by the investor within 20 days,
CDI will debit the difference from my account. Full shares, if any, remaining
in escrow after the aforementioned adjustment will be released and, upon
request, remitted to me.
I irrevocably constitute and appoint CDI as my attorney-in-fact, with
full power of substitution, to surrender for redemption any or all escrowed
shares on the books of the Fund. This power of attorney is coupled with an
interest.
The commission allowed by CDI to the broker-dealer named herein shall
be at the rate applicable to the minimum amount of my specified intended
purchases.
The Letter may be revised upward by me at any time during the
thirteen-month period, and such a revision will be treated as a new Letter,
except that the thirteen-month period during which the purchase must be made
will remain unchanged and there will be no retroactive reduction of the sales
charges paid on prior purchases.
In determining the total amount of purchases made hereunder, shares
disposed of prior to termination of this Letter will be deducted. My
broker-dealer shall refer to this Letter of Intent in placing any future
purchase orders for me while this Letter is in effect.
Dealer Name of Investor(s)
By
Authorized Signer Address
Date Signature of Investor(s)
Date Signature of Investor(s)
- --------
<PAGE>
PART C. OTHER INFORMATION
Item 24. Financial Statements and Exhibits
(a) Financial statements
Not applicable.
Schedules II-VII, inclusive, for which provision is
made in the applicable accounting regulation of the
Securities and Exchange Commission, are omitted because
they are not required under the related instructions,
or they are inapplicable, or the required information
is presented in the financial statements or notes
thereto.
(b) Exhibits:
1. Declaration of Trust (incorporated by reference to
Registrant's Initial Registration Statement,
October 20, 1980).
2. By-Laws (incorporated by reference to Registrant's
Initial Registration Statement, October 20,
1980).
4. Specimen Stock Certificate for the Vermont Municipal
Portfolio (incorporated by reference to
Registrant's Post-Effective Amendment No. 29,
August 30, 1991); for the Limited-Term
Portfolio, Long-Term Portfolio, and all other
Portfolios (except Vermont Municipal),
(incorporated by reference to Registrant's
Post-Effective Amendment No. 32, January 29,
1993).
5. Advisory Contract (incorporated by reference to
Registrant's Post-Effective Amendment No. 29,
August 30, 1991).
6. Underwriting Agreement, incorporated by reference to
Registrant's Post-Effective Amendment No. 40,
February 8, 1995.
7. Trustees' Deferred Compensation Agreement (incorporated
by reference to Registrant's Post-Effective
Amendment No. 30, January 31, 1992).
8. Custodial Contract (with respect to all Portfolios
except Vermont Municipal Portfolio,
(incorporated by reference to Registrant's
Post-Effective Amendment No. 34, November 30,
1993); with respect to Vermont Municipal
Portfolio, (incorporated by reference to
Registrant's Post-Effective Amendment No. 31,
April 30, 1992).
9.a. Transfer Agency Contract (incorporated by
reference to Registrant's Post-Effective
Amendment No. 6, March 2, 1984).
9.b. Administrative Services Agreement
(incorporated by reference to Registrant's
Post-Effective Amendment No. 15, January 30,
1989).
10. Opinion and Consent of Counsel as to Legality
of Shares Being Registered.
11. Consent of Independent Auditors to Use of
Report.
15. Plan of Distribution for the Class A Shares of
the Long-Term Portfolio, (incorporated by
reference to Registrant's Post-Effective
Amendment No. 5, September 13, 1983; with
respect to Class A Shares of the Vermont
Municipal Portfolio, the Plan of Distribution
was terminated, and the termination was
ratified by the Fund Trustees on November 6,
1991; for the Class B and C shares of the
Limited-Term, Long-Term, and Vermont
Portfolios, incorporated by reference to
Registrant's Post-Effective Amendment No. 40,
February 8, 1995).
16. Schedule for Computation of Performance
Quotation (with respect to the Money Market,
Limited-Term and Long-Term Portfolios,
incorporated by reference to Registrant's
Post-Effective Amendment No. 14, filed March
1, 1988; with respect to the Calvert Cash
Reserves Tax-Free Portfolio, incorporated by
reference to Registrant's Post-Effective
Amendment No. 15, filed January 30, 1989; with
respect to the California Money Market
Portfolio, incorporated by reference to
Registrant's Post-Effective Amendment No. 22,
filed October 29, 1990; with respect to the
New Jersey Money Market Portfolio and Vermont
Municipal Portfolio, incorporated by reference
to Registrant's Post-Effective Amendment No.
29, August 30, 1991).
Exhibits 3 and 12 through 14 are omitted because they are
inapplicable.
Item 25. Persons Controlled By or Under Common Control With Registrant
Registrant is controlled by its Board of Trustees, which is a
common Board with five registered investment companies, First Variable
Rate Fund for Government Income, Calvert Tax-Free Reserves, Calvert Cash
Reserves, The Calvert Fund, and Calvert Municipal Fund, Inc. In
addition, members of Registrant's Board of Trustees may also serve on
the Boards of Calvert Social Investment Fund, Calvert Variable Series,
Inc., Calvert New World Fund, Inc., and Calvert World Values
Fund, Inc.
Item 26. Number of Holders of Securities
As of December 31, 1997, there were 43,938 holders of record of
Registrant's Class O shares of beneficial interest for Calvert Tax-Free Reserves
Money Market Portfolio.
As of December 31, 1997 , there were 30 holders of record of
Registrant's Institutional Class Shares of beneficial interest for the Calvert
Tax-Free Reserves Money Market Portfolio.
As of December 31, 1997, there were 8,909 holders of record of
Registrant's shares of beneficial interest for Calvert Tax-Free Reserves
Limited-Term Portfolio.
As of December 31, 1997, there were 1,365 holders of record of
Registrant's shares of beneficial interest for Calvert Tax-Free Reserves
Long-Term Portfolio.
As of December 31, 1997, there were 9,856 holders of record of
Registrant's shares of beneficial interest for Calvert Tax-Free Reserves
California Portfolio.
As of December 31, 1997, there were 1,114 holders of record of
Registrant's shares of beneficial interest for Calvert Tax-Free Reserves
Vermont Municipal Portfolio.
Item 27. Indemnification
Registrant's Declaration of Trust, which Declaration is Exhibit
1 of this Registration Statement, provides, in summary, that officers,
trustees, employees, and agents shall be indemnified by Registrant
against liabilities and expenses incurred by such persons in connection
with actions, suits, or proceedings arising out of their offices or
duties of employment, except that no indemnification can be made to such
a person if he has been adjudged liable of willful misfeasance, bad
faith, gross negligence, or reckless disregard of his duties. In the
absence of such an adjudication, the determination of eligibility for
indemnification shall be made by independent counsel in a written
opinion or by the vote of a majority of a quorum of trustees who are
neither "interested persons" of Registrant, as that term is defined in
Section 2(a)(19) of the Investment Company Act of 1940, nor parties to
the proceeding.
Registrant's Declaration of Trust also provides that Registrant
may purchase and maintain liability insurance on behalf of any officer,
trustee, employee or agent against any liabilities arising from such
status. In this regard, Registrant maintains a Directors & Officers
(Partners) Liability Insurance Policy with Chubb Group of Insurance
Companies, 15 Mountain View Road, Warren, New Jersey 07061, providing
Registrant with $5 million in directors and officers liability coverage,
plus $3 million in excess directors and officers liability coverage for
the independent trustees/directors only. Registrant also maintains a $9
million Investment Company Blanket Bond issued by ICI Mutual Insurance
Company, P.O. Box 730, Burlington, Vermont, 05402, and an additional $5
million in excess of $9 million blanket bond with Chubb Group of
Insurance Companies, 15 Mountain View Road, Warren, New Jersey 07061.
Item 28. Business and Other Connections of Investment Adviser
Name of Company, Principal
Name Business and Address Capacity
Barbara J. Krumsiek Calvert Variable Series, Inc. Officer
Calvert Municipal Fund, Inc. and
Calvert World Values Fund, Inc. Director
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
First Variable Rate Fund for Officer
Government Income and
Calvert Tax-Free Reserves Trustee
Calvert Social Investment Fund
Calvert Cash Reserves
The Calvert Fund
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Asset Management Co., Inc. Officer
Investment Advisor and
4550 Montgomery Avenue Director
Bethesda, Maryland 20814
----------------
Calvert Group, Ltd. Officer
Holding Company and
4550 Montgomery Avenue Director
Bethesda, Maryland 20814
----------------
Calvert Shareholder Services, Inc. Officer
Transfer Agent and
4550 Montgomery Avenue Director
Bethesda, Maryland 20814
---------------
Calvert Administrative Services Co. Officer
Service Company and
4550 Montgomery Avenue Director
Bethesda, Maryland 20814
---------------
Calvert Distributors, Inc. Officer
Broker-Dealer and
4550 Montgomery Avenue Director
Bethesda, Maryland 20814
---------------
Calvert-Sloan Advisers, LLC Director
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert New World Fund, Inc. Director
Investment Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
--------------
Alliance Capital Mgmt. L.P. Sr. Vice President
Mutual Fund Division Director
1345 Avenue of the Americas
New York, NY 10105
--------------
Ronald M. Wolfsheimer First Variable Rate Fund Officer
for Government Income
Calvert Tax-Free Reserves
Calvert Cash Reserves
Calvert Social Investment Fund
The Calvert Fund
Calvert Variable Series, Inc.
Calvert Municipal Fund, Inc.
Calvert World Values Fund, Inc.
Calvert New World Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
--------------
Calvert Asset Management Co., Inc. Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Group, Ltd. Officer
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Shareholder Services, Inc. Officer
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Administrative Services Co. Officer
Service Company and
4550 Montgomery Avenue Director
Bethesda, Maryland 20814
---------------
Calvert Distributors, Inc. Director
Broker-Dealer and
4550 Montgomery Avenue Officer
Bethesda, Maryland 20814
---------------
Calvert-Sloan Advisers, LLC Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
David R. Rochat First Variable Rate Fund Officer
for Government Income and
Calvert Tax-Free Reserves Trustee
Calvert Cash Reserves
The Calvert Fund
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Municipal Fund, Inc. Officer
Investment Company and
4550 Montgomery Avenue Director
Bethesda, Maryland 20814
---------------
Calvert Asset Management Co., Inc. Officer
Investment Advisor and
4550 Montgomery Avenue Director
Bethesda, Maryland 20814
---------------
Chelsea Securities, Inc. Officer
Securities Firm and
Post Office Box 93 Director
Chelsea, Vermont 05038
---------------
Grady, Berwald & Co. Officer
Holding Company and
43A South Finley Avenue Director
Basking Ridge, NJ 07920
---------------
Reno J. Martini Calvert Asset Management Co., Inc. Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Group, Ltd. Officer
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
First Variable Rate Fund Officer
for Government Income
Calvert Tax-Free Reserves
Calvert Cash Reserves
Calvert Social Investment Fund
The Calvert Fund
Calvert Variable Series, Inc.
Calvert Municipal Fund, Inc.
Calvert World Values Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert New World Fund, Inc. Director
Investment Company and
4550 Montgomery Avenue Officer
Bethesda, Maryland 20814
---------------
Calvert-Sloan Advisers, LLC Director
Investment Advisor and
4550 Montgomery Avenue Officer
Bethesda, Maryland 20814
---------------
Charles T. Nason Acacia Mutual Life Insurance Officer
Acacia National Life Insurance and Director
Insurance Companies
7315 Wisconsin Avenue
Bethesda, Maryland 20814
---------------
Acacia Financial Corporation Officer
Holding Company and
7315 Wisconsin Avenue Director
Bethesda, Maryland 20814
---------------
Gardner Montgomery Company Director
Tax Return Preparation Services
7315 Wisconsin Avenue
Bethesda, Maryland 20814
----------------
Acacia Federal Savings Bank Director
Savings Bank
7600-B Leesburg Pike
Falls Church, Virginia 22043
---------------
Enterprise Resources, Inc. Director
Business Support Services
7315 Wisconsin Avenue
Bethesda, Maryland 20814
---------------
Acacia Insurance Management Officer
Services Corporation and
Service Corporation Director
7315 Wisconsin Avenue
Bethesda, Maryland 20814
---------------
Calvert Group, Ltd. Director
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Administrative Services Co. Director
Service Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Asset Management Co., Inc. Director
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Shareholder Services, Inc. Director
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Social Investment Fund Trustee
Investment Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
-----------------
The Advisors Group, Inc. Director
Broker-Dealer and
Investment Advisor
7315 Wisconsin Avenue
Bethesda, Maryland 20814
---------------
Robert-John H. Acacia National Life Insurance Officer
Sands Insurance Company and
7315 Wisconsin Avenue Director
Bethesda, Maryland 20814
----------------
Acacia Mutual Life Insurance Officer
Insurance Company
7315 Wisconsin Avenue
Bethesda, Maryland 20814
----------------
Acacia Financial Corporation Officer
Holding Company and
7315 Wisconsin Avenue Director
Bethesda, Maryland 20814
----------------
Acacia Federal Savings Bank Officer
Savings Bank
7600-B Leesburg Pike
Falls Church, Virginia 22043
---------------
Enterprise Resources, Inc. Director
Business Support Services
7315 Wisconsin Avenue
Bethesda, Maryland 20814
---------------
Acacia Realty Corporation Officer
Real Estate Investments
7315 Wisconsin Avenue
Bethesda, Maryland 20814
---------------
Acacia Insurance Management Officer
Services Corporation and
Service Corporation Director
7315 Wisconsin Avenue
Bethesda, Maryland 20814
---------------
Gardner Montgomery Company Officer
Tax Return and
Preparation Services Director
7315 Wisconsin Avenue
Bethesda, Maryland 20814
----------------
The Advisors Group, Inc. Director
Broker-Dealer and
Investment Advisor
7315 Wisconsin Avenue
Bethesda, Maryland 20814
---------------
Calvert Group, Ltd. Director
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Administrative Services Co. Director
Service Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Asset Management, Co., Inc. Director
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Shareholder Services, Inc. Director
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
William M. Tartikoff Acacia National Life Insurance Officer
Insurance Company
7315 Wisconsin Avenue
Bethesda, Maryland 20814
----------------
First Variable Rate Fund for Officer
Government Income
Calvert Tax-Free Reserves
Calvert Cash Reserves
Calvert Social Investment Fund
The Calvert Fund
Calvert Variable Series, Inc.
Calvert Municipal Fund, Inc.
Calvert World Values Fund, Inc.
Calvert New World Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Group, Ltd. Officer
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Administrative Officer
Services Company
Service Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Asset Management Co. Inc. Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Shareholder Services, Inc. Officer
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Distributors, Inc. Director
Broker-Dealer and
4550 Montgomery Avenue Officer
Bethesda, Maryland 20814
----------------
Calvert-Sloan Advisers, LLC Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Susan Walker Bender Calvert Group, Ltd. Officer
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Administrative Services Co. Officer
Service Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Asset Management Co., Inc. Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Shareholder Services, Inc. Officer
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Distributors, Inc. Officer
Broker-Dealer
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert-Sloan Advisers, LLC Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
First Variable Rate Fund for Officer
Government Income
Calvert Tax-Free Reserves
Calvert Cash Reserves
Calvert Social Investment Fund
The Calvert Fund
Calvert Variable Series, Inc.
Calvert Municipal Fund, Inc.
Calvert World Values Fund, Inc.
Calvert New World Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Katherine Stoner Calvert Group, Ltd. Officer
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Administrative Services Co. Officer
Service Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Asset Management Co., Inc. Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Shareholder Services, Inc. Officer
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Distributors, Inc. Officer
Broker-Dealer
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert-Sloan Advisers, LLC Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
First Variable Rate Fund for Officer
Government Income
Calvert Tax-Free Reserves
Calvert Cash Reserves
Calvert Social Investment Fund
The Calvert Fund
Calvert Variable Series, Inc.
Calvert Municipal Fund, Inc.
Calvert World Values Fund, Inc.
Calvert New World Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Lisa Crossley Newton Calvert Group, Ltd. Officer
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Administrative Services Co. Officer
Service Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Asset Management Co., Inc. Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Shareholder Services, Inc. Officer
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Distributors, Inc. Officer
Broker-Dealer
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert-Sloan Advisers, LLC Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
First Variable Rate Fund for Officer
Government Income
Calvert Tax-Free Reserves
Calvert Cash Reserves
Calvert Social Investment Fund
The Calvert Fund
Calvert Variable Series, Inc.
Calvert Municipal Fund, Inc.
Calvert World Values Fund, Inc.
Calvert New World Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Ivy Wafford Duke Calvert Group, Ltd. Officer
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Administrative Services Co. Officer
Service Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Asset Management Co., Inc. Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Shareholder Services, Inc. Officer
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Distributors, Inc. Officer
Broker-Dealer
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert-Sloan Advisers, LLC Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
First Variable Rate Fund for Officer
Government Income
Calvert Tax-Free Reserves
Calvert Cash Reserves
Calvert Social Investment Fund
The Calvert Fund
Calvert Variable Series, Inc.
Calvert Municipal Fund, Inc.
Calvert World Values Fund, Inc.
Calvert New World Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Daniel K. Hayes Calvert Asset Management Co., Inc. Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
First Variable Rate Fund for Officer
Government Income
Calvert Tax-Free Reserves
Calvert Cash Reserves
Calvert Social Investment Fund
The Calvert Fund
Calvert Variable Series, Inc.
Calvert Municipal Fund, Inc.
Calvert World Values Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Steve Van Order Calvert Asset Management Officer
Company, Inc.
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Annette Krakovitz Calvert Asset Management Officer
Company, Inc.
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
John Nichols Calvert Asset Management Officer
Company, Inc.
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
David Leach Calvert Asset Management Officer
Company, Inc.
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Item 29. Principal Underwriters
(a) Registrant's principal underwriter also underwrites
shares of First Variable Rate Fund for Government Income, Calvert
Tax-Free Reserves, Calvert Social Investment Fund, Calvert Cash Reserves,
Calvert Municipal Fund, Inc., Calvert World Values Fund, Inc.,
Calvert New World Fund, Inc., and Calvert Variable Series, Inc.
(b) Positions of Underwriter's Officers and Directors
Name and Principal Position(s) with Position(s) with
Business Address Underwriter Registrant
Barbara J. Krumsiek Director and President President and Trustee
Ronald M. Wolfsheimer Director, Senior Vice Treasurer
President and Chief Financial Officer
William M. Tartikoff Director, Senior Vice Vice President and
President and Secretary Secretary
Karen Becker Vice President, Operations None
Steve Cohen Vice President None
Geoffrey Ashton Regional Vice President None
Martin Brown Regional Vice President None
Janet Haley Regional Vice President None
Ben Ogbogu Regional Vice President None
Susan Walker Bender Assistant Secretary Assistant Secretary
Katherine Stoner Assistant Secretary Assistant Secretary
Lisa Crossley Newton Assistant Secretary Assistant Secretary
and Compliance Officer
Ivy Wafford Duke Assistant Secretary Assistant Secretary
(c) Inapplicable.
Item 30. Location of Accounts and Records
Ronald M. Wolfsheimer, Treasurer
and
William M. Tartikoff, Assistant Secretary
4550 Montgomery Avenue, Suite 1000N
Bethesda, Maryland 20814
Item 31. Management Services
Not Applicable
Item 32. Undertakings
a) Not Applicable
b) Not Applicable
c) The Registrant undertakes to furnish to each person to whom
a Prospectus is delivered, a copy of the Registrant's latest
Annual Report to Shareholders, upon request and without
charge.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant has duly caused this
registration statement to be signed on its behalf by the undersigned, thereto
duly authorized in the City of Bethesda, and State of Maryland, on the 11th
day of February, 1998.
CALVERT TAX-FREE RESERVES
By:
_________________________________
Barbara J. Krumsiek
President and Trustee
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933,
this Registration Statement has been signed below by the following
persons in the capacities indicated.
Signature Title Date
__________**____________ President and 2/11/98
Barbara J. Krumsiek Trustee (Principal Executive Officer)
__________**____________ Principal Accounting 2/11/98
Ronald M. Wolfsheimer Officer
__________**____________ Trustee 2/11/98
Richard L. Baird, Jr.
__________**____________ Trustee 2/11/98
Frank H. Blatz, Jr., Esq.
__________**____________ Trustee 2/11/98
Frederick T. Borts, M.D.
__________**____________ Trustee 2/11/98
Charles E. Diehl
__________**____________ Trustee 2/11/98
Douglas E. Feldman
__________**____________ Trustee 2/11/98
Peter W. Gavian
__________**____________ Trustee 2/11/98
John G. Guffey, Jr.
__________**____________ Trustee 2/11/98
M. Charito Kruvant
__________**____________ Trustee 2/11/98
Arthur J. Pugh
__________**____________ Trustee 2/11/98
David R. Rochat
__________**____________ Trustee 2/11/98
D. Wayne Silby
**By Katherine Stoner as Attorney-in-fact, pursuant to Power of Attorney
Forms on file.
EXHIBIT INDEX
Form N-1A
Item No.
Ex-23
24(b)(10) Form of Opinion and Consent of Counsel
Ex-24 Power of Attorney
Exhibit 10
February 11, 1998
Securities and Exchange Commission
Judiciary Plaza
450 Fifth Street, N.W.
Washington, D.C. 20549
Re: Exhibit 10, Form N-1A
Calvert Tax-Free Reserves
File numbers 2-69565 and 811-3101
Ladies and Gentlemen:
As counsel to Calvert Group, Ltd., it is my opinion that the
securities being registered by this Post-Effective Amendment No. 44 will
be legally issued, fully paid and non-assessable when sold. My opinion
is based on an examination of documents related to Calvert Tax-Free
Reserves (the "Trust"), including its Declaration of Trust, its By-Laws,
other original or photostatic copies of Trust records, certificates of
public officials, documents, papers, statutes, and authorities as I
deemed necessary to form the basis of this opinion.
I therefore consent to filing this opinion of counsel with the
Securities and Exchange Commission as an Exhibit to the Trust's
Post-Effective Amendment No. 44 to its Registration Statement.
Sincerely,
/s/
Katherine Stoner
Associate General Counsel
POWER OF ATTORNEY
I, the undersigned Trustee/Director of First Variable Rate Fund for
Government Income, Calvert Tax-Free Reserves, Calvert Cash Reserves, The
Calvert Fund, and Calvert Municipal Fund, Inc. (collectively, the "Funds"),
hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff, Susan Walker
Bender, Katherine Stoner, Lisa Crossley, and Ivy Wafford Duke my true and
lawful attorneys, with full power to each of them, to sign for me and in my
name in the appropriate capacities, all registration statements and amendments
filed by the Funds with any federal or state agency, and to do all such things
in my name and behalf necessary for registering and maintaining registration
or exemptions from registration of the Funds with any government agency in any
jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things in my
name and behalf to comply with the provisions of all federal, state and
foreign laws, regulations, and policy pronouncements affecting the Funds,
including, but not limited to, the Securities Act of 1933, the Securities
Exchange Act of 1934, the Investment Company Act of 1940, the Investment
Advisers Act of 1940, and all state laws regulating the securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Funds in connection
with any transaction approved by the Board of Trustee/Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the Funds, the
signing is automatically ratified and confirmed by me by virtue of this Power
of Attorney.
WITNESS my hand on the date set forth below.
May 7, 1997
Date /Signature/
Edwidge Saint-Felix Barbara Krumsiek
Witness Name of Trustee/Director
POWER OF ATTORNEY
I, the undersigned Trustee/Director of First Variable Rate Fund for
Government Income, Calvert Tax-Free Reserves, Calvert Cash Reserves, The
Calvert Fund, and Calvert Municipal Fund, Inc. (collectively, the "Funds"),
hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff, Susan Walker
Bender, Katherine Stoner, Lisa Crossley, and Ivy Wafford Duke my true and
lawful attorneys, with full power to each of them, to sign for me and in my
name in the appropriate capacities, all registration statements and amendments
filed by the Funds with any federal or state agency, and to do all such things
in my name and behalf necessary for registering and maintaining registration
or exemptions from registration of the Funds with any government agency in any
jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things in my
name and behalf to comply with the provisions of all federal, state and
foreign laws, regulations, and policy pronouncements affecting the Funds,
including, but not limited to, the Securities Act of 1933, the Securities
Exchange Act of 1934, the Investment Company Act of 1940, the Investment
Advisers Act of 1940, and all state laws regulating the securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Funds in connection
with any transaction approved by the Board of Trustee/Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the Funds, the
signing is automatically ratified and confirmed by me by virtue of this Power
of Attorney.
WITNESS my hand on the date set forth below.
May 7, 1997
Date /Signature/
Edwidge Saint-Felix Richard L. Baird, Jr.
Witness Name of Trustee/Director
POWER OF ATTORNEY
I, the undersigned Trustee/Director of First Variable Rate Fund for
Government Income, Calvert Tax-Free Reserves, Calvert Cash Reserves, The
Calvert Fund, and Calvert Municipal Fund, Inc. (collectively, the "Funds"),
hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff, Susan Walker
Bender, Katherine Stoner, Lisa Crossley, and Ivy Wafford Duke my true and
lawful attorneys, with full power to each of them, to sign for me and in my
name in the appropriate capacities, all registration statements and amendments
filed by the Funds with any federal or state agency, and to do all such things
in my name and behalf necessary for registering and maintaining registration
or exemptions from registration of the Funds with any government agency in any
jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things in my
name and behalf to comply with the provisions of all federal, state and
foreign laws, regulations, and policy pronouncements affecting the Funds,
including, but not limited to, the Securities Act of 1933, the Securities
Exchange Act of 1934, the Investment Company Act of 1940, the Investment
Advisers Act of 1940, and all state laws regulating the securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Funds in connection
with any transaction approved by the Board of Trustee/Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the Funds, the
signing is automatically ratified and confirmed by me by virtue of this Power
of Attorney.
WITNESS my hand on the date set forth below.
May 7, 1997
Date /Signature/
Charles E. Diehl Frank H. Blatz, Jr.
Witness Name of Trustee/Director
POWER OF ATTORNEY
I, the undersigned Trustee/Director of First Variable Rate Fund for
Government Income, Calvert Tax-Free Reserves, Calvert Cash Reserves, The
Calvert Fund, and Calvert Municipal Fund, Inc. (collectively, the "Funds"),
hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff, Susan Walker
Bender, Katherine Stoner, Lisa Crossley, and Ivy Wafford Duke my true and
lawful attorneys, with full power to each of them, to sign for me and in my
name in the appropriate capacities, all registration statements and amendments
filed by the Funds with any federal or state agency, and to do all such things
in my name and behalf necessary for registering and maintaining registration
or exemptions from registration of the Funds with any government agency in any
jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things in my
name and behalf to comply with the provisions of all federal, state and
foreign laws, regulations, and policy pronouncements affecting the Funds,
including, but not limited to, the Securities Act of 1933, the Securities
Exchange Act of 1934, the Investment Company Act of 1940, the Investment
Advisers Act of 1940, and all state laws regulating the securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Funds in connection
with any transaction approved by the Board of Trustee/Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the Funds, the
signing is automatically ratified and confirmed by me by virtue of this Power
of Attorney.
WITNESS my hand on the date set forth below.
May 7, 1997
Date /Signature/
Edwidge Saint-Felix Douglas E. Feldman
Witness Name of Trustee/Director
POWER OF ATTORNEY
I, the undersigned Trustee/Director of First Variable Rate Fund for
Government Income, Calvert Tax-Free Reserves, Calvert Cash Reserves, The
Calvert Fund, and Calvert Municipal Fund, Inc. (collectively, the "Funds"),
hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff, Susan Walker
Bender, Katherine Stoner, Lisa Crossley, and Ivy Wafford Duke my true and
lawful attorneys, with full power to each of them, to sign for me and in my
name in the appropriate capacities, all registration statements and amendments
filed by the Funds with any federal or state agency, and to do all such things
in my name and behalf necessary for registering and maintaining registration
or exemptions from registration of the Funds with any government agency in any
jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things in my
name and behalf to comply with the provisions of all federal, state and
foreign laws, regulations, and policy pronouncements affecting the Funds,
including, but not limited to, the Securities Act of 1933, the Securities
Exchange Act of 1934, the Investment Company Act of 1940, the Investment
Advisers Act of 1940, and all state laws regulating the securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Funds in connection
with any transaction approved by the Board of Trustee/Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the Funds, the
signing is automatically ratified and confirmed by me by virtue of this Power
of Attorney.
WITNESS my hand on the date set forth below.
May 7, 1997
Date /Signature/
Frank H. Blatz, Jr. Charles E. Diehl
Witness Name of Trustee/Director
POWER OF ATTORNEY
I, the undersigned Trustee/Director of First Variable Rate Fund for
Government Income, Calvert Tax-Free Reserves, Calvert Cash Reserves, The
Calvert Fund, and Calvert Municipal Fund, Inc. (collectively, the "Funds"),
hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff, Susan Walker
Bender, Katherine Stoner, Lisa Crossley, and Ivy Wafford Duke my true and
lawful attorneys, with full power to each of them, to sign for me and in my
name in the appropriate capacities, all registration statements and amendments
filed by the Funds with any federal or state agency, and to do all such things
in my name and behalf necessary for registering and maintaining registration
or exemptions from registration of the Funds with any government agency in any
jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things in my
name and behalf to comply with the provisions of all federal, state and
foreign laws, regulations, and policy pronouncements affecting the Funds,
including, but not limited to, the Securities Act of 1933, the Securities
Exchange Act of 1934, the Investment Company Act of 1940, the Investment
Advisers Act of 1940, and all state laws regulating the securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Funds in connection
with any transaction approved by the Board of Trustee/Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the Funds, the
signing is automatically ratified and confirmed by me by virtue of this Power
of Attorney.
WITNESS my hand on the date set forth below.
May 7, 1997
Date /Signature/
Edwidge Saint-Felix Peter W. Gavian
Witness Name of Trustee/Director
POWER OF ATTORNEY
I, the undersigned Trustee/Director of First Variable Rate Fund for
Government Income, Calvert Tax-Free Reserves, Calvert Cash Reserves, The
Calvert Fund, and Calvert Municipal Fund, Inc. (collectively, the "Funds"),
hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff, Susan Walker
Bender, Katherine Stoner, Lisa Crossley, and Ivy Wafford Duke my true and
lawful attorneys, with full power to each of them, to sign for me and in my
name in the appropriate capacities, all registration statements and amendments
filed by the Funds with any federal or state agency, and to do all such things
in my name and behalf necessary for registering and maintaining registration
or exemptions from registration of the Funds with any government agency in any
jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things in my
name and behalf to comply with the provisions of all federal, state and
foreign laws, regulations, and policy pronouncements affecting the Funds,
including, but not limited to, the Securities Act of 1933, the Securities
Exchange Act of 1934, the Investment Company Act of 1940, the Investment
Advisers Act of 1940, and all state laws regulating the securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Funds in connection
with any transaction approved by the Board of Trustee/Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the Funds, the
signing is automatically ratified and confirmed by me by virtue of this Power
of Attorney.
WITNESS my hand on the date set forth below.
May 7, 1997
Date /Signature/
M. Charito Kruvant John G. Guffey, Jr.
Witness Name of Trustee/Director
POWER OF ATTORNEY
I, the undersigned Trustee/Director of First Variable Rate Fund for
Government Income, Calvert Tax-Free Reserves, Calvert Cash Reserves, The
Calvert Fund, and Calvert Municipal Fund, Inc. (collectively, the "Funds"),
hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff, Susan Walker
Bender, Katherine Stoner, Lisa Crossley, and Ivy Wafford Duke my true and
lawful attorneys, with full power to each of them, to sign for me and in my
name in the appropriate capacities, all registration statements and amendments
filed by the Funds with any federal or state agency, and to do all such things
in my name and behalf necessary for registering and maintaining registration
or exemptions from registration of the Funds with any government agency in any
jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things in my
name and behalf to comply with the provisions of all federal, state and
foreign laws, regulations, and policy pronouncements affecting the Funds,
including, but not limited to, the Securities Act of 1933, the Securities
Exchange Act of 1934, the Investment Company Act of 1940, the Investment
Advisers Act of 1940, and all state laws regulating the securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Funds in connection
with any transaction approved by the Board of Trustee/Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the Funds, the
signing is automatically ratified and confirmed by me by virtue of this Power
of Attorney.
WITNESS my hand on the date set forth below.
May 7, 1997
Date /Signature/
Edwidge Saint-Felix M. Charito Kruvant
Witness Name of Trustee/Director
POWER OF ATTORNEY
I, the undersigned Trustee/Director of First Variable Rate Fund for
Government Income, Calvert Tax-Free Reserves, Calvert Cash Reserves, The
Calvert Fund, and Calvert Municipal Fund, Inc. (collectively, the "Funds"),
hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff, Susan Walker
Bender, Katherine Stoner, Lisa Crossley, and Ivy Wafford Duke my true and
lawful attorneys, with full power to each of them, to sign for me and in my
name in the appropriate capacities, all registration statements and amendments
filed by the Funds with any federal or state agency, and to do all such things
in my name and behalf necessary for registering and maintaining registration
or exemptions from registration of the Funds with any government agency in any
jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things in my
name and behalf to comply with the provisions of all federal, state and
foreign laws, regulations, and policy pronouncements affecting the Funds,
including, but not limited to, the Securities Act of 1933, the Securities
Exchange Act of 1934, the Investment Company Act of 1940, the Investment
Advisers Act of 1940, and all state laws regulating the securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Funds in connection
with any transaction approved by the Board of Trustee/Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the Funds, the
signing is automatically ratified and confirmed by me by virtue of this Power
of Attorney.
WITNESS my hand on the date set forth below.
May 7, 1997
Date /Signature/
Charles E. Diehl Arthur J. Pugh
Witness Name of Trustee/Director
POWER OF ATTORNEY
I, the undersigned Trustee/Director of First Variable Rate Fund for
Government Income, Calvert Tax-Free Reserves, Calvert Cash Reserves, The
Calvert Fund, and Calvert Municipal Fund, Inc. (collectively, the "Funds"),
hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff, Susan Walker
Bender, Katherine Stoner, Lisa Crossley, and Ivy Wafford Duke my true and
lawful attorneys, with full power to each of them, to sign for me and in my
name in the appropriate capacities, all registration statements and amendments
filed by the Funds with any federal or state agency, and to do all such things
in my name and behalf necessary for registering and maintaining registration
or exemptions from registration of the Funds with any government agency in any
jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things in my
name and behalf to comply with the provisions of all federal, state and
foreign laws, regulations, and policy pronouncements affecting the Funds,
including, but not limited to, the Securities Act of 1933, the Securities
Exchange Act of 1934, the Investment Company Act of 1940, the Investment
Advisers Act of 1940, and all state laws regulating the securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Funds in connection
with any transaction approved by the Board of Trustee/Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the Funds, the
signing is automatically ratified and confirmed by me by virtue of this Power
of Attorney.
WITNESS my hand on the date set forth below.
May 7, 1997
Date /Signature/
Katherine Stoner David R. Rochat
Witness Name of Trustee/Director
POWER OF ATTORNEY
I, the undersigned Trustee/Director of First Variable Rate Fund for
Government Income, Calvert Tax-Free Reserves, Calvert Cash Reserves, The
Calvert Fund, and Calvert Municipal Fund, Inc. (collectively, the "Funds"),
hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff, Susan Walker
Bender, Katherine Stoner, Lisa Crossley, and Ivy Wafford Duke my true and
lawful attorneys, with full power to each of them, to sign for me and in my
name in the appropriate capacities, all registration statements and amendments
filed by the Funds with any federal or state agency, and to do all such things
in my name and behalf necessary for registering and maintaining registration
or exemptions from registration of the Funds with any government agency in any
jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things in my
name and behalf to comply with the provisions of all federal, state and
foreign laws, regulations, and policy pronouncements affecting the Funds,
including, but not limited to, the Securities Act of 1933, the Securities
Exchange Act of 1934, the Investment Company Act of 1940, the Investment
Advisers Act of 1940, and all state laws regulating the securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Funds in connection
with any transaction approved by the Board of Trustee/Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the Funds, the
signing is automatically ratified and confirmed by me by virtue of this Power
of Attorney.
WITNESS my hand on the date set forth below.
May 7, 1997
Date /Signature/
Edwidge Saint-Felix D. Wayne Silby
Witness Name of Trustee/Director
POWER OF ATTORNEY
I, the undersigned Trustee/Director of First Variable Rate Fund for
Government Income, Calvert Tax-Free Reserves, Calvert Cash Reserves, The
Calvert Fund, and Calvert Municipal Fund, Inc. (collectively, the "Funds"),
hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff, Susan Walker
Bender, Katherine Stoner, Lisa Crossley, and Ivy Wafford Duke my true and
lawful attorneys, with full power to each of them, to sign for me and in my
name in the appropriate capacities, all registration statements and amendments
filed by the Funds with any federal or state agency, and to do all such things
in my name and behalf necessary for registering and maintaining registration
or exemptions from registration of the Funds with any government agency in any
jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things in my
name and behalf to comply with the provisions of all federal, state and
foreign laws, regulations, and policy pronouncements affecting the Funds,
including, but not limited to, the Securities Act of 1933, the Securities
Exchange Act of 1934, the Investment Company Act of 1940, the Investment
Advisers Act of 1940, and all state laws regulating the securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Funds in connection
with any transaction approved by the Board of Trustee/Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the Funds, the
signing is automatically ratified and confirmed by me by virtue of this Power
of Attorney.
WITNESS my hand on the date set forth below.
January 16, 1998
Date /Signature/
Roger Wilkins Frederick Borts, M.D.
Witness Name of Trustee/Director
POWER OF ATTORNEY
I, the undersigned officer of Calvert Social Investment Fund, Calvert
World Values Fund, Acacia Capital Corporation, Calvert New World Fund, First
Variable Rate Fund, Calvert Tax-Free Reserves, Calvert Cash Reserves, The
Calvert Fund and Calvert Municipal Fund (each, respectively, the "Fund"),
hereby constitute William M. Tartikoff, Susan Walker Bender, Katherine Stoner,
Lisa Crossley, and Ivy Wafford Duke my true and lawful attorneys, with full
power to each of them, to sign for me and in my name in the appropriate
capacities, all registration statements and amendments filed by the Fund with
any federal or state agency, and to do all such things in my name and behalf
necessary for registering and maintaining registration or exemptions from
registration of the Fund with any government agency in any jurisdiction,
domestic or foreign.
The same persons are authorized generally to do all such things in my
name and behalf to comply with the provisions of all federal, state and
foreign laws, regulations, and policy pronouncements affecting the Funds,
including, but not limited to, the Securities Act of 1933, the Securities
Exchange Act of 1934, the Investment Company Act of 1940, the Investment
Advisers Act of 1940, and all state laws regulating the securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Funds in connection
with any transaction approved by the Board of Trustee/Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the Funds, the
signing is automatically ratified and confirmed by me by virtue of this Power
of Attorney.
WITNESS my hand on the date set forth below.
December 16, 1997
Date /Signature/
William M. Tartikoff Ronald M. Wolfsheimer
Witness Name of Officer
