PROSPECTUS --
January 31, 1996
CALVERT SOCIAL INVESTMENT FUND
Money Market Portfolio
Bond Portfolio
Managed Growth Portfolio
Equity Portfolio
==========================================================================
INTRODUCTION TO THE FUND
Calvert Social Investment Fund seeks to provide growth of capital or current
income through investment in enterprises that make a significant contribution to
society through their products and services and through the way they do
business. Investments are selected on the basis of their ability to contribute
to the dual objectives of the Fund. Potential investments are first screened for
financial soundness and then evaluated according to the Fund's social criteria.
An investment in the Fund is neither insured nor guaranteed by the U.S.
Government. There can be no assurance that the Money Market Portfolio will be
successful in maintaining a constant net asset value of $1.00 per share.
The Fund has four different Portfolios, each with a different investment
objective.
The Money Market Portfolio invests in money market instruments, including
repurchase agreements with banks and brokers secured by such instruments,
selected in accordance with the Fund's investment and social criteria. The Money
Market Portfolio seeks to maintain a constant net asset value of $1.00 per
share.
The Managed Growth Portfolio maintains an actively managed portfolio of stocks,
bonds and money market instruments selected with a concern for the investment
and social impact of each investment.
The Bond Portfolio invests primarily in corporate bonds and other straight debt
securities, selected in accordance with the Fund's investment and social
criteria.
The Equity Portfolio maintains an actively managed portfolio of stocks selected
with a concern for the investment and social impact of each investment.
PURCHASE INFORMATION
The Managed Growth, Bond, and Equity Portfolios offer two classes of shares,
each with different expense levels and sales charges. You may choose to purchase
(i) Class A shares, with a sales charge imposed at the time you purchase the
shares ("front-end sales charge"); or (ii) Class C shares which impose neither a
front-end sales charge nor a contingent deferred sales charge. Class C shares
are not available through all dealers. Class C shares have a higher level of
expenses than Class A shares, including higher Rule 12b-1 fees. These
alternatives permit you to choose the method of purchasing shares that is most
beneficial to you, depending on the amount of the purchase, the length of time
you expect to hold the shares, and other circumstances. See "Alternative Sales
Options" for further details.
TO OPEN AN ACCOUNT
Call your broker, or complete and return the enclosed Account Application.
Minimum investment is $1,000.
ABOUT THIS PROSPECTUS
Please read this Prospectus before investing. It is designed to provide you with
information you ought to know before investing and to help you decide if the
Fund's goals match your own. Keep this document for future reference.
A Statement of Additional Information for the Fund (dated January 31, 1995) has
been filed with the Securities and Exchange Commission and is incorporated by
reference. This free -368-2748.is available upon request from the Fund: 800
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION, NOR HAS THE
FEDERAL OR ANY STATE SECURITIES COMMISSION PASSED ON THE ACCURACY OR
ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
SHARES OF THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR
ENDORSED BY, ANY BANK, AND ARE NOT FEDERALLY INSURED BY THE FDIC, THE
FEDERAL RESERVE BOARD, OR ANY OTHER AGENCY. WHEN INVESTORS SELL SHARES
OF THE FUND, THE VALUE MAY BE HIGHER OR LOWER THAN THE AMOUNT ORIGINALLY
PAID.
<PAGE>
HIGHLIGHTS
INVESTMENT OBJECTIVES AND POLICIES
Calvert Social Investment Fund is designed to provide opportunities for
investors seeking growth of capital or current income through investment in
enterprises that make a significant contribution to society through their
products and services and through the way they do business.
The Money Market Portfolio seeks to provide the highest level of current income,
consistent with liquidity, safety and stability, through investment in money
market instruments, including securities issued or guaranteed by agencies of the
U.S. Government and repurchase agreements with banks and brokers secured by such
instruments, selected in accordance with the Fund's investment and social
criteria. The Money Market Portfolio is designed for short-term cash management
and for investors needing stability of principal. The Money Market Portfolio
seeks to maintain a constant net asset value of $1.00 per share.
The Managed Growth Portfolio seeks to achieve a total return above the rate of
inflation through an actively managed, diversified portfolio of common and
preferred stocks, bonds and money market instruments which offer income and
capital growth opportunity and which satisfy the investment and social concern
criteria established by the Fund.
The Bond Portfolio seeks to provide as high a level of current income as is
consistent with prudent investment risk and preservation of capital through
investment in bonds and other straight debt securities, selected pursuant to the
Fund's investment and social criteria.
The Equity Portfolio seeks growth of capital through investment in the equity
securities of issuers within industries perceived to offer opportunities for
potential capital appreciation and which satisfy the Fund's investment and
social criteria.
There can be no assurance that the Fund will be successful in meeting its
investment objectives or that the Money Market Portfolio will maintain a
constant net asset value of $1.00 per share. For a further description of the
Fund's four Portfolios and discussion of the Fund's investment techniques, see
"Investment Objectives and Policies," "Investment Selection Process" and
"Additional Investment Policies."
EXPERTISE IN THE MANAGEMENT OF THE FUND
The Fund's Investment Advisor is Calvert Asset Management Company, Inc., a
subsidiary of Acacia Mutual Life Insurance Company of Washington, D.C. U.S.
Trust Company of Boston is the Investment Sub-Advisor to the Bond Portfolio.
Sub-Advisors for the Managed Growth Portfolio include U.S. Trust, NCM Capital
Management Group, Inc., Brown Capital Management, Inc., Fortaleza Asset
Management, Inc., and Frontier Capital Management Company, Inc. CAM Selection
Process," and "Additional Investment Policies.")(See "Management of the Fund,"
"Investment Selection Process," and "Additional Investment Policies.")
DIVERSIFICATION OF INVESTMENTS AND RISKS
By pooling the funds of many investors with similar investment objectives, the
Fund gives each an opportunity to benefit from a broadly diversified portfolio,
a benefit available ordinarily only to investors with substantial capital.
Although the Fund's social criteria and consideration tend to limit the
availability of investment opportunities more than is customary with other
investment companies, the Advisors of the Fund believe that there are sufficient
investment opportunities to permit full investment among issuers which satisfy
the Fund's investment and social investment objectives. (See Statement of
Additional Information, "Investment Selection Process.") For a discussion of the
risks which may be associated with investments in repurchase and reverse
repurchase agreements, privately placed securities, non-investment grade debt
securities, the securities of foreign issuers, and options and futures
contracts, see "Additional Investment Policies" and in the Statement of
Additional Information, "Investment Objectives and Policies" and "Portfolio
Transactions."
PURCHASE OF FUND SHARES
There is no sales charge on shares of the Money Market Portfolio. Class A shares
of the Managed Growth, Bond, and Equity Portfolios are sold subject to a
front-end sales charge which varies according to the dollar amount of shares
purchased (see "How to Buy Shares"). Purchases of shares of the Fund may be made
by mail, bank wire, electronic funds transfer, through the Fund's branch office
or through brokers. (See "How to Buy Shares.")
REDEMPTION OF FUND SHARES
Shares of each Portfolio may be redeemed at any time at no charge at the net
asset value next determined after a proper redemption request is received by the
Fund's transfer agent. Investors may redeem shares by mail or by telephone,
through brokers, or, for investors in the Money Market Portfolio, by writing
drafts in the amount of $250 or more against their account balances. (See "How
to Sell Your Shares.")
GENERAL INFORMATION
The Fund is an open-end, diversified management investment company organized as
a Massachusetts business trust under a Declaration of Trust dated December 14,
1981, and is a series company. The Money Market and Managed Growth Portfolios
commenced operations in October 1982, and the Bond and Equity Portfolios
commenced operations in August 1987. The Fund's authorized capital and shares
being offered by this Prospectus consist of an unlimited number of shares of
beneficial interest of no par value which may be issued in series. Shares have
equal rights with all other shares of the same class and series as to voting,
dividends and liquidation.
FUND EXPENSES
Money Market Portfolio Managed GRowth Portfolio
A. Shareholder
Transaction Costs Class A Class A Class C
Maximum Sales Charge
on Purchases (as a None 4.75% None
percentage of
offering price)
Contingent Deferred
Sales Charge None None None
B. Annual Fund Operating
Expenses-Fiscal
Year 1995
(as a percentage of
average net assets,
after expense
reimbursement/waiver)
Management Fees 0.50% 0.70% 0.70%
Rule 12b-1 Service and
Distribution Fees 0.00% 0.24% 1.00%
Other Expenses 0.39% 0.34% 0.81%
Total Fund Operating
Expenses<F1> 0.89% 1.28% 2.51%
<F1>Net Fund Operating Expenses after reduction for fees paid indirectly
were: Money Market .87%, Managed Growth Class A 1.26%, Managed Growth
Class C 2.50%, Bond Class A 1.22%, Bond Class C 2.50% and Equity Class A
1.36%.
Bond Portfolio Equity Portfolio
A. Shareholder
Transaction Costs Class A Class C Class A Class C
Maximum Sales Charge
on Purchases (as a
3.75% percentage
of offering price) 3.75% None 4.75% None
Contingent Deferred
Sales Charge None None None None
B. Annual Fund Operating
Expenses-Fiscal
Year 1995
(as a percentage of
net assets, net of
any applicable fee
reimbursement/waiver)
Management Fees 0.65% 0.65% 0.63% 0.63%
Rule 12b-1 Service
and Distribution Fees 0.20% 1.00% 0.23% 1.00%
Other Expenses 0.39% 0.87% 0.52% 1.88%
Total Fund Operating
Expenses 1.24% 2.52% 1.38% 3.51%
C. Example: You would pay the following expenses on a $1,000 investment,
assuming (1) 5% annual return;(2) redemption at the end of each period; and
(3) for all Portfolios except Money Market Portfolio, for Class A Shares,
payment of maximum initial
at time of purchase:
1 Year 3 Years 5 Years 10 Years
Money Market Portfolio
$9 $28 $49 $110
Managed Growth Portfolio
Class A $60 $86 $114 $195
Class C $25 $78 $134 $285
Bond Portfolio
Class A $50 $75 $103 $182
Class C $26 $78 $134 $286
Equity Portfolio
Class A $61 $89 $119 $205
Class C $35 $108 $182 $378
The example, which is hypothetical, should not be considered a
representation of past or future expenses. Actual expenses and return
may be higher or lower than those shown.
Explanation of Table: The purpose of the table is to assist you in
understanding the various costs and expenses that an investor in the
Fund may bear directly (shareholder transaction costs) or indirectly
(annual fund operating expenses).
A. Shareholder Transaction Costs are charges you pay when you buy
or sell shares of the Fund. See "Reduced Sales Charges" at Exhibit A to
see if you qualify for possible reductions in the sales charge. If you
request a wire redemption of less than $1,000, you will be charged a $5
wire fee.
B. Annual Fund Operating Expenses are based on historical expenses.
Management Fees are paid by the Fund to Calvert Asset Management
Company, Inc. ("Investment Advisor") for managing the Fund's investments
and business affairs. Management fees include the Sub-Advisory fee paid
by the Investment Advisor to the Sub-Advisors of the Portfolios. The
Management fees for the Equity Portfolio are subject to a performance
adjustment, which could cause the fee to be as high as 0.90% or as low
as 0.50%, depending on the Portfolio's performance relative to the
Standard & Poor 500 Composite Index. The Management fees for the Managed
Growth Portfolio are subject to a performance adjustment, after January
1, 1997, which could cause the fee to be as high as 0.85% or as low as
0.55%, depending on the Portfolio's performance relative to the
Sub-Advisor's Relevant Index. The Fund incurs Other Expenses for
maintaining shareholder records, furnishing shareholder statements and
reports, and other services. Management Fees and Other Expenses have
already been reflected in the Fund's yield or share price and are not
charged directly to individual shareholder accounts.
If Management had not reimbursed or waived fees, the current Other Expenses
and Total Fund Operating Expenses for the Money Market Portfolio would have been
0.57% and 1.07%, respectively. For Class A shares of the Managed Growth
Portfolio, without waiver or reimbursement, Other Expenses and Total Fund
Operating Expenses would have been 0.36% and 1.30%, respectively. For Managed
Growth Class C shares, the current Other Expenses and total Fund Operating
Expenses would have been 1.23% and 2.93%, respectively. For Class C shares of
the Bond Portfolio, without waiver or reimbursement, the current Other expenses
and total Fund Operating Expenses would have been 3.01% and 4.66%, respectively.
For Class C shares of the Equity Portfolio, 1.07% of Other Expenses were
reimbursed or waived during the 1995 fiscal year. However, expenses for the
Equity Portfolio, Class C Shares, have been restated to reflect expenses
anticipated in the current fiscal year.
The Fund's Rule 12b-1 fees include an asset-based sales charge.
Thus, long-term shareholders in the Fund may pay more in total sales
charges than the economic equivalent of the maximum front-end sales
charge permitted by rules of the National Association of Securities
Dealers, Inc.
FINANCIAL HIGHLIGHTS
The following tables provide information about the financial history of
each Portfolio's shares. They express the information in terms of a
single share outstanding for the respective Portfolio throughout each
period. Information for Class C shares is presented only since their
inception on March 1, 1994. The tables have been audited by the
independent accountants, whose report is included in the Annual Report
to Shareholders of the Fund. The tables should be read in conjunction
with the financial statements and their related notes. The current
Annual Report to Shareholders is incorporated by reference into the
Statement of Additional Information.
Money Market Portfolio Class A Shares
Year Ended
September 30, 1995
Net asset value, beginning of year $1.00
Income from investment operations
Net investment income .050
Distributions from
Net investment income (.050)
Net asset value, end of year $1.00
Total return<F4> 5.13%
Ratio to average net assets:
Net investment income 5.03%
Total expenses<F5> .89%
Net expenses .87%
Expenses reimbursed and/or waived .18%
Net assets, end of year (in thousands) $153,996
Number of shares outstanding
at end of year (in thousands) 154,044
<F4>Total return prior to 1989 is not audited.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
were included in the ratio.
Money Market Portfolio Class A Shares
Year Ended
September 30, 1994
Net asset value, beginning of year $1.00
Income from investment operations
Net investment income .031
Distributions from
Net investment income (.031)
Net asset value, end of year $1.00
Total return<F4> 3.13%
Ratio to average net assets:
Net investment income 3.07%
Total expenses<F5> --
Net expenses .87%
Expenses reimbursed and/or waived .18%
Net assets, end of year (in thousands) $143,779
Number of shares outstanding
at end of year (in thousands) 143,826
<F4>Total return prior to 1989 is not audited.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
were included in the ratio.
Money Market Portfolio Class A Shares
Year Ended
September 30, 1993
Net asset value, beginning of year $1.00
Income from investment operations
Net investment income .025
Distributions from
Net investment income (.025)
Net asset value, end of year $1.00
Total return<F4> 2.56%
Ratio to average net assets:
Net investment income 2.54%
Total expenses<F5> --
Net expenses .87%
Expenses reimbursed and/or waived .20%
Net assets, end of year (in thousands) $144,985
Number of shares outstanding
at end of year (in thousands) 145,031
<F4>Total return prior to 1989 is not audited.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
were included in the ratio.
Money Market Portfolio Class A Shares
Year Ended
September 30, 1992
Net asset value, beginning of year $1.00
Income from investment operations
Net investment income .037
Distributions from
Net investment income (.037)
Net asset value, end of year $1.00
Total return<F4> 3.79%
Ratio to average net assets:
Net investment income 3.74%
Total expenses<F5> --
Net expenses .87%
Expenses reimbursed and/or waived .16%
Net assets, end of year (in thousands) $171,340
Number of shares outstanding
at end of year (in thousands) 171,407
<F4>Total return prior to 1989 is not audited.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
were included in the ratio.
Money Market Portfolio Class A Shares
Year Ended
September 30, 1991
Net asset value, beginning of year $1.00
Income from investment operations
Net investment income .061
Distributions from
Net investment income (.061)
Net asset value, end of year $1.00
Total return<F4> 6.32%
Ratio to average net assets:
Net investment income 6.12%
Total expenses<F5> --
Net expenses .87%
Expenses reimbursed and/or waived .13%
Net assets, end of year (in thousands) $193,947
Number of shares outstanding
at end of year (in thousands) 194,015
<F4>Total return prior to 1989 is not audited.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
were included in the ratio.
Money Market Portfolio Class A Shares
Year Ended
September 30, 1990
Net asset value, beginning of year $1.00
Income from investment operations
Net investment income .076
Distributions from
Net investment income (.076)
Net asset value, end of year $1.00
Total return<F4> 7.85%
Ratio to average net assets:
Net investment income 7.53%
Total expenses<F5> --
Net expenses .85%
Expenses reimbursed and/or waived .14%
Net assets, end of year (in thousands) $182,148
Number of shares outstanding
at end of year (in thousands) 182,193
<F4>Total return prior to 1989 is not audited.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
were included in the ratio.
Money Market Portfolio Class A Shares
Year Ended
September 30, 1989
Net asset value, beginning of year $1.00
Income from investment operations
Net investment income .084
Distributions from
Net investment income (.084)
Net asset value, end of year $1.00
Total return<F4> 6.47%
Ratio to average net assets:
Net investment income 8.40%
Total expenses<F5> --
Net expenses .85%
Expenses reimbursed and/or waived .17%
Net assets, end of year (in thousands) $139,662
Number of shares outstanding
at end of year (in thousands) 139,707
<F4>Total return prior to 1989 is not audited.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
were included in the ratio.
Money Market Portfolio Class A Shares
Year Ended
September 30, 1988
Net asset value, beginning of year $1.00
Income from investment operations
Net investment income .067
Distributions from
Net investment income (.067)
Net asset value, end of year $1.00
Total return<F4> 5.31%
Ratio to average net assets:
Net investment income 6.47%
Total expenses<F5> --
Net expenses .84%
Expenses reimbursed and/or waived .27%
Net assets, end of year (in thousands) $81,253
Number of shares outstanding
at end of year (in thousands) 81,278
<F4>Total return prior to 1989 is not audited.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
were included in the ratio.
Money Market Portfolio Class A Shares
Year Ended
September 30, 1987
Net asset value, beginning of year $1.00
Income from investment operations
Net investment income .057
Distributions from
Net investment income (.057)
Net asset value, end of year $1.00
Total return<F4> 4.62%
Ratio to average net assets:
Net investment income 5.52%
Total expenses<F5> --
Net expenses .86%
Expenses reimbursed and/or waived .24%
Net assets, end of year (in thousands) $66,285
Number of shares outstanding
at end of year (in thousands) 66,288
<F4>Total return prior to 1989 is not audited.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
were included in the ratio.
Money Market Portfolio Class A Shares
Year Ended
September 30, 1986
Net asset value, beginning of year $1.00
Income from investment operations
Net investment income .067
Distributions from
Net investment income (.067)
Net asset value, end of year $1.00
Total return<F4> 4.77%
Ratio to average net assets:
Net investment income 6.51%
Total expenses<F5> --
Net expenses .84%
Expenses reimbursed and/or waived .34%
Net assets, end of year (in thousands) $58,249
Number of shares outstanding
at end of year (in thousands) 58,248
<F4>Total return prior to 1989 is not audited.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
were included in the ratio.
Managed Growth Portfolio Class A Shares
Year Ended
September 30, 1995
Net asset value, beginning of year $28.77
Income from investment operations
Net investment income .87
Net realized and unrealized gain
(loss) on investments 4.25
Total from investment operations 5.12
Distributions from
Net investment income (.87)
Net realized gains (.21)
Total Distributions (1.08)
Total increase (decrease) in
net asset value 4.04
Net asset value, end of year $32.81
Total return<F4> 18.21%
Ratio to average net assets:
Net investment income 2.89%
Total expenses<F5> 1.28%
Net expenses 1.26%
Expenses reimbursed and/or waived .02%
Portfolio turnover 114%
Net assets, end of year (in thousands) $560,981
Number of shares outstanding
at end of year (in thousands) 17,099
<F4>Total return is not annualized and does not reflect deduction of
Class A front-end sales charges. Total return prior to 1989 is not
audited.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
were included in the ratio.
Managed Growth Portfolio Class A Shares
Year Ended
September 30, 1994
Net asset value, beginning of year $30.85
Income from investment operations
Net investment income .93
Net realized and unrealized gain
(loss) on investments (1.83)
Total from investment operations (.90)
Distributions from
Net investment income (.95)
Net realized gains (.23)
Total Distributions (1.18)
Total increase (decrease) in
net asset value (2.08)
Net asset value, end of year $28.77
Total return<F4> (2.95%)
Ratio to average net assets:
Net investment income 3.14%
Total expenses<F5> --
Net expenses 1.24%
Expenses reimbursed and/or waived --
Portfolio turnover 34%
Net assets, end of year (in thousands) $512,027
Number of shares outstanding
at end of year (in thousands) 17,800
<F4>Total return is not annualized and does not reflect deduction of
Class A front-end sales charges. Total return prior to 1989 is not
audited.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
were included in the ratio.
Managed Growth Portfolio Class A Shares
Year Ended
September 30, 1993
Net asset value, beginning of year $29.35
Income from investment operations
Net investment income .95
Net realized and unrealized gain
(loss) on investments 1.91
Total from investment operations 2.86
Distributions from
Net investment income (.95)
Net realized gains (.41)
Total Distributions (1.36)
Total increase (decrease) in
net asset value 1.50
Net asset value, end of year $30.85
Total return<F4> 9.98%
Ratio to average net assets:
Net investment income 3.25%
Total expenses<F5> --
Net expenses 1.25%
Expenses reimbursed and/or waived --
Portfolio turnover 33%
Net assets, end of year (in thousands) $536,170
Number of shares outstanding
at end of year (in thousands) 17,378
<F4>Total return is not annualized and does not reflect deduction of
Class A front-end sales charges. Total return prior to 1989 is not
audited.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
were included in the ratio.
Managed Growth Portfolio Class A Shares
Year Ended
September 30, 1992
Income from investment operations
Net investment income 1.07
Net realized and unrealized gain
(loss) on investments 1.82
Total from investment operations 2.89
Distributions from
Net investment income (1.95)
Net realized gains (.01)
Total Distributions (1.96)
Total increase (decrease) in
net asset value .93
Net asset value, end of year $29.35
Total return<F4> 10.71%
Ratio to average net assets:
Net investment income 3.90%
Total expenses<F5> --
Net expenses 1.28%
Expenses reimbursed and/or waived --
Portfolio turnover 14%
Net assets, end of year (in thousands) $419,514
Number of shares outstanding
at end of year (in thousands) 14,292
<F4>Total return is not annualized and does not reflect deduction of
Class A front-end sales charges. Total return prior to 1989 is not
audited.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
were included in the ratio.
Managed Growth Portfolio Class A Shares
Year Ended
September 30, 1991
Net asset value, beginning of year $25.87
Income from investment operations
Net investment income 1.20
Net realized and unrealized gain
(loss) on investments 3.10
Total from investment operations 4.30
Distributions from
Net investment income (1.00)
Net realized gains (.75)
Total Distributions (1.75)
Total increase (decrease) in
net asset value 2.55
Net asset value, end of year $28.42
Total return<F4> 17.51%
Ratio to average net assets:
Net investment income 4.73%
Total expenses<F5> --
Net expenses 1.31%
Expenses reimbursed and/or waived --
Portfolio turnover 25%
Net assets, end of year (in thousands) $329,922
Number of shares outstanding
at end of year (in thousands) 11,609
<F4>Total return is not annualized and does not reflect deduction of
Class A front-end sales charges. Total return prior to 1989 is not
audited.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
were included in the ratio.
Managed Growth Portfolio Class A Shares
Year Ended
September 30, 1990
Net asset value, beginning of year $27.72
Income from investment operations
Net investment income 1.09
Net realized and unrealized gain
(loss) on investments (1.85)
Total from investment operations (.76)
Distributions from
Net investment income (.63)
Net realized gains (.46)
Total Distributions (1.09)
Total increase (decrease) in
net asset value (1.85)
Net asset value, end of year $25.87
Total return<F4> (2.87%)
Ratio to average net assets:
Net investment income 4.85%
Total expenses<F5> --%
Net expenses 1.30%
Expenses reimbursed and/or waived --
Portfolio turnover 24%
Net assets, end of year (in thousands) $242,617
Number of shares outstanding
at end of year (in thousands) 9,377
<F4>Total return is not annualized and does not reflect deduction of
Class A front-end sales charges. Total return prior to 1989 is not
audited.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
were included in the ratio.
Managed Growth Portfolio Class A Shares
Year Ended
September 30, 1989
Net asset value, beginning of year $25.04
Income from investment operations
Net investment income 1.15
Net realized and unrealized gain
(loss) on investments 2.97
Total from investment operations 4.12
Distributions from
Net investment income (.98)
Net realized gains (.46)
Total Distributions (1.44)
Total increase (decrease) in
net asset value 2.68
Net asset value, end of year $27.72
Total return<F4> 17.31%
Ratio to average net assets:
Net investment income 4.49%
Total expenses<F5> --
Net expenses 1.29%
Expenses reimbursed and/or waived --
Portfolio turnover 34%
Net assets, end of year (in thousands) $212,178
Number of shares outstanding
at end of year (in thousands) 7,654
<F4>Total return is not annualized and does not reflect deduction of
Class A front-end sales charges. Total return prior to 1989 is not
audited.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
were included in the ratio.
Managed Growth Portfolio Class A Shares
Year Ended
September 30, 1988
Net asset value, beginning of year $27.44
Income from investment operations
Net investment income 1.09
Net realized and unrealized gain
(loss) on investments (1.91)
Total from investment operations (.82)
Distributions from
Net investment income (1.08)
Net realized gains (.50)
Total Distributions (1.58)
Total increase (decrease) in
net asset value (2.40)
Net asset value, end of year $25.04
Total return<F4> (2.48%)
Ratio to average net assets:
Net investment income 4.30%
Total expenses<F5> --
Net expenses 1.34%
Expenses reimbursed and/or waived --
Portfolio turnover 46%
Net assets, end of year (in thousands) $171,931
Number of shares outstanding
at end of year (in thousands) 6,866
<F4>Total return is not annualized and does not reflect deduction of
Class A front-end sales charges. Total return prior to 1989 is not
audited.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
were included in the ratio.
Managed Growth Portfolio Class A Shares
Year Ended
September 30, 1987
Net asset value, beginning of year $23.25
Income from investment operations
Net investment income .65
Net realized and unrealized gain
(loss) on investments 4.35
Total from investment operations 5.00
Distributions from
Net investment income (.70)
Net realized gains (.11)
Total Distributions (.81)
Total increase (decrease) in
net asset value 4.19
Net asset value, end of year $27.44
Total return<F4> 22.04%
Ratio to average net assets:
Net investment income 2.82%
Total expenses<F5> --%
Net expenses 1.29%
Expenses reimbursed and/or waived --
Portfolio turnover 14%
Net assets, end of year (in thousands) $174,218
Number of shares outstanding
at end of year (in thousands) 6,348
<F4>Total return is not annualized and does not reflect deduction of
Class A front-end sales charges. Total return prior to 1989 is not
audited.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
were included in the ratio.
Managed Growth Portfolio Class A Shares
Year Ended
September 30, 1986
Net asset value, beginning of year $18.92
Income from investment operations
Net investment income .62
Net realized and unrealized gain
(loss) on investments 4.64
Total from investment operations 5.26
Distributions from
Net investment income (.77)
Net realized gains (.16)
Total Distributions (.93)
Total increase (decrease) in
net asset value 4.33
Net asset value, end of year $23.25
Total return<F4> 28.61%
Ratio to average net assets:
Net investment income 3.42%
Total expenses<F5> --
Net expenses 1.30%
Expenses reimbursed and/or waived .02%
Portfolio turnover 24%
Net assets, end of year (in thousands) $86,405
Number of shares outstanding
at end of year (in thousands) 3,761
<F4>Total return is not annualized and does not reflect deduction of
Class A front-end sales charges. Total return prior to 1989 is not
audited.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
were included in the ratio.
Managed Growth Portfolio Class C Shares
Period Ended
September 30, 1995
Net asset value, beginning of period $28.65
Income from investment operations
Net investment income .54
Net realized and unrealized gain
(loss) on investments 4.20
Total from investment operations 4.74
Distributions from
Net investment income (.58)
Net realized gains (.21)
Total Distributions (.79)
Total increase (decrease) in
net asset value 3.95
Net asset value, end of period $32.60
Total return<F4> 16.85%
Ratio to average net assets:
Net investment income 1.61%
Total expenses<F5> 2.51%
Net expenses 2.50%
Expenses reimbursed and/or waived .42%
Portfolio turnover 114%
Net assets, end of period (in thousands) $4,065
Number of shares outstanding
at end of period (in thousands) 125
<F4>Total return is not annualized and does not reflect deduction of
Class A front-end sales charges.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
were included in the ratio.
Managed Growth Portfolio Class C Shares
From Inception
(March 1, 1994) to
September 30, 1994
Net asset value, beginning of period $30.43
Income from investment operations
Net investment income .51
Net realized and unrealized gain
(loss) on investments (1.66)
Total from investment operations (1.15)
Distributions from
Net investment income (.63)
Net realized gains --
Total Distributions (.63)
Total increase (decrease) in
net asset value (1.78)
Net asset value, end of period $28.65
Total return<F4> (3.30%)
Ratio to average net assets:
Net investment income 1.83%(a)
Total expenses<F5> --
Net expenses 2.47%(a)
Expenses reimbursed and/or waived 1.46%(a)
Portfolio turnover 34%
Net assets, end of period (in thousands) $1,893
Number of shares outstanding
at end of period (in thousands) 66
<F4>Total return is not annualized and does not reflect deduction of
Class A front-end sales charges.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
were included in the ratio.
(a) Annualized
Bond Portfolio Class A Shares
Period Ended
September 30, 1995
Net asset value, beginning of period $15.49
Income from investment operations
Net investment income .96
Net realized and unrealized gain
(loss) on investments .91
Total from investment operations 1.87
Distributions from
Net investment income (.93)
Net realized gains (.06)
Tax return of capital (.03)
Total Distributions (1.02)
Total increase (decrease) in
net asset value .85
Net asset value, end of period $16.34
Total return<F4> 12.57%
Ratio to average net assets:
Net investment income 6.04%
Total expenses<F5> 1.24%
Net expenses 1.22%
Expenses reimbursed and/or waived --
Portfolio turnover 29%
Net assets, end of period (in thousands) $62,929
Number of shares outstanding
at end of period (in thousands) 3,850
<F4>Total return is not annualized and does not reflect deduction of
Class A front-end sales charges. Total return prior to 1989 is not
audited.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
were included in the ratio.
Bond Portfolio Class A Shares
Period Ended
September 30, 1994
Net asset value, beginning of period $17.77
Income from investment operations
Net investment income .94
Net realized and unrealized gain
(loss) on investments (1.81)
Total from investment operations (.87)
Distributions from
Net investment income (.94)
Net realized gains (.47)
Tax return of capital --
Total Distributions (1.41)
Total increase (decrease) in
net asset value (2.28)
Net asset value, end of period $15.49
Total return<F4> (5.18%)
Ratio to average net assets:
Net investment income 5.64%
Total expenses<F5> --
Net expenses 1.10%
Expenses reimbursed and/or waived --
Portfolio turnover 19%
Net assets, end of period (in thousands) $61,573
Number of shares outstanding
at end of period (in thousands) 3,976
<F4>Total return is not annualized and does not reflect deduction of
Class A front-end sales charges. Total return prior to 1989 is not
audited.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
were included in the ratio.
Bond Portfolio Class A Shares
Period Ended
September 30, 1993
Net asset value, beginning of period $17.05
Income from investment operations
Net investment income 1.08
Net realized and unrealized gain
(loss) on investments .85
Total from investment operations 1.93
Distributions from
Net investment income (1.08)
Net realized gains (.13)
Tax return of capital --
Total Distributions (1.21)
Total increase (decrease) in
net asset value .72
Net asset value, end of period $17.77
Total return<F4> 11.89%
Ratio to average net assets:
Net investment income 6.33%
Total expenses<F5> --
Net expenses .79%
Expenses reimbursed and/or waived .20%
Portfolio turnover 28%
Net assets, end of period (in thousands) $67,134
Number of shares outstanding
at end of period (in thousands) 3,778
<F4>Total return is not annualized and does not reflect deduction of
Class A front-end sales charges. Total return prior to 1989 is not
audited.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
were included in the ratio.
Bond Portfolio Class A Shares
Period Ended
September 30, 1992
Net asset value, beginning of period $16.48
Income from investment operations
Net investment income 1.15
Net realized and unrealized gain
(loss) on investments .78
Total from investment operations 1.93
Distributions from
Net investment income (1.15)
Net realized gains (.21)
Tax return of capital --
Total Distributions (1.36)
Total increase (decrease) in
net asset value .57
Net asset value, end of period $17.05
Total return<F4> 12.29%
Ratio to average net assets:
Net investment income 6.90%
Total expenses<F5> --
Net expenses .75%
Expenses reimbursed and/or waived .24%
Portfolio turnover 29%
Net assets, end of period (in thousands) $50,572
Number of shares outstanding
at end of period (in thousands) 2,965
<F4>Total return is not annualized and does not reflect deduction of
Class A front-end sales charges. Total return prior to 1989 is not
audited.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
were included in the ratio.
Bond Portfolio Class A Shares
Period Ended
September 30, 1991
Net asset value, beginning of period $15.34
Income from investment operations
Net investment income 1.21
Net realized and unrealized gain
(loss) on investments 1.15
Total from investment operations 2.36
Distributions from
Net investment income (1.21)
Net realized gains (.01)
Tax return of capital --
Total Distributions (1.22)
Total increase (decrease) in
net asset value 1.14
Net asset value, end of period $16.48
Total return<F4> 15.95%
Ratio to average net assets:
Net investment income 7.63%
Total expenses<F5> --
Net expenses .77%
Expenses reimbursed and/or waived .27%
Portfolio turnover 24%
Net assets, end of period (in thousands) $33,259
Number of shares outstanding
at end of period (in thousands) 2,018
<F4>Total return is not annualized and does not reflect deduction of
Class A front-end sales charges. Total return prior to 1989 is not
audited.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
were included in the ratio.
Bond Portfolio Class A Shares
Period Ended
September 30, 1990
Net asset value, beginning of period $15.71
Income from investment operations
Net investment income 1.24
Net realized and unrealized gain
(loss) on investments (.32)
Total from investment operations .92
Distributions from
Net investment income (1.24)
Net realized gains (.05)
Tax return of capital --
Total Distributions (1.29)
Total increase (decrease) in
net asset value (.37)
Net asset value, end of period $15.34
Total return<F4> 6.09%
Ratio to average net assets:
Net investment income 8.02%
Total expenses<F5> --
Net expenses .65%
Expenses reimbursed and/or waived .45%
Portfolio turnover 22%
Net assets, end of period (in thousands) $23,298
Number of shares outstanding
at end of period (in thousands) 1,519
<F4>Total return is not annualized and does not reflect deduction of
Class A front-end sales charges. Total return prior to 1989 is not
audited.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
were included in the ratio.
Bond Portfolio Class A Shares
Period Ended
September 30, 1989
Net asset value, beginning of period $15.43
Income from investment operations
Net investment income 1.31
Net realized and unrealized gain
(loss) on investments .30
Total from investment operations 1.61
Distributions from
Net investment income (1.29)
Net realized gains (.04)
Tax return of capital --
Total Distributions (1.33)
Total increase (decrease) in
net asset value .28
Net asset value, end of period $15.71
Total return<F4> 10.93%
Ratio to average net assets:
Net investment income 8.53%
Total expenses<F5> --
Net expenses .17%
Expenses reimbursed and/or waived .92%
Portfolio turnover 50%
Net assets, end of period (in thousands) $12,792
Number of shares outstanding
at end of period (in thousands) 814
<F4>Total return is not annualized and does not reflect deduction of
Class A front-end sales charges. Total return prior to 1989 is not
audited.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
were included in the ratio.
Bond Portfolio Class A Shares
Period Ended
September 30, 1988
Net asset value, beginning of period $14.81
Income from investment operations
Net investment income 1.16
Net realized and unrealized gain
(loss) on investments .62
Total from investment operations 1.78
Distributions from
Net investment income (1.16)
Net realized gains --
Tax return of capital --
Total Distributions (1.16)
Total increase (decrease) in
net asset value .62
Net asset value, end of period $15.43
Total return<F4> 12.32%
Ratio to average net assets:
Net investment income 8.14%
Total expenses<F5> --
Net expenses --
Expenses reimbursed and/or waived 1.56%
Portfolio turnover 27%
Net assets, end of period (in thousands) $5,235
Number of shares outstanding
at end of period (in thousands) 339
<F4>Total return is not annualized and does not reflect deduction of
Class A front-end sales charges. Total return prior to 1989 is not
audited.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
were included in the ratio.
Bond Portfolio Class A Shares
From Inception
(August 24, 1987) to
September 30, 1987
Net asset value, beginning of period $15.00
Income from investment operations
Net investment income .04
Net realized and unrealized gain
(loss) on investments (.20)
Total from investment operations (.16)
Distributions from
Net investment income (.03)
Net realized gains --
Tax return of capital --
Total Distributions (.03)
Total increase (decrease) in
net asset value (.19)
Net asset value, end of period $14.81
Total return<F4> (13.56%)(a)
Ratio to average net assets:
Net investment income .34%(a)
Total expenses<F5> --
Net expenses .50%(a)
Expenses reimbursed and/or waived 1.16%(a)
Portfolio turnover --
Net assets, end of period (in thousands) $344
Number of shares outstanding
at end of period (in thousands) 23
<F4>Total return is not annualized and does not reflect deduction of
Class A front-end sales charges. Total return prior to 1989 is not
audited.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
were included in the ratio.
(a) Annualized
Bond Portfolio Class C Shares
Period Ended
September 30, 1995
Net asset value, beginning of period $15.43
Income from investment operations
Net investment income .80
Net realized and unrealized gain
(loss) on investments .87
Total from investment operations 1.67
Distributions from
Net investment income (.81)
Net realized gains (.06)
Tax return of capital (.03)
Total Distributions (.90)
Total increase (decrease) in
net asset value .77
Net asset value, end of period $16.20
Total return<F4> 11.21%
Ratio to average net assets:
Net investment income 4.60%
Total expenses<F5> 2.52%
Net expenses 2.50%
Expenses reimbursed and/or waived 2.14%
Portfolio turnover 29%
Net assets, end of period (in thousands) $910
Number of shares outstanding
at end of period (in thousands) 56
<F4>Total return is not annualized and does not reflect deduction of
Class A front-end sales charges.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
were included in the ratio.
Managed Growth Portfolio Class C Shares
From Inception
(March 1, 1994) to
September 30, 1994
Net asset value, beginning of period $16.71
Income from investment operations
Net investment income .45
Net realized and unrealized gain
(loss) on investments (1.23)
Total from investment operations (.78)
Distributions from
Net investment income (.50)
Net realized gains --
Tax return of capital --
Total Distributions (.50)
Total increase (decrease) in
net asset value (1.28)
Net asset value, end of period $15.43
Total return<F4> (4.13%)
Ratio to average net assets:
Net investment income 4.63%(a)
Total expenses<F5> --
Net expenses 2.41%(a)
Expenses reimbursed and/or waived 9.60%(a)
Portfolio turnover 19%
Net assets, end of period (in thousands) $315
Number of shares outstanding
at end of period (in thousands) 20
<F4>Total return is not annualized and does not reflect deduction of
Class A front-end sales charges.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
were included in the ratio.
(a) Annualized
Equity Portfolio Class A Shares
Year Ended
September 30, 1995
Net asset value, beginning of year $20.13
Income from investment operations
Net investment income .06
Net realized and unrealized gain
(loss) on investments 2.22
Total from investment operations 2.28
Distributions from
Net investment income (.04)
Net realized gains (1.25)
Total Distributions (1.29)
Total increase (decrease) in
net asset value .99
Net asset value, end of year $21.12
Total return<F4> 12.43%
Ratio to average net assets:
Net investment income .32%
Total expenses<F5> 1.38%
Net expenses 1.36%
Expenses reimbursed and/or waived --
Portfolio turnover 35%
Net assets, end of period (in thousands) $90,951
Number of shares outstanding
at end of year (in thousands) 4,307
<F4>Total return is not annualized and does not reflect deduction of
Class A front-end sales charges. Total return prior to 1989 is not
audited.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
were included in the ratio.
Equity Portfolio Class A Shares
Year Ended
September 30, 1994
Net asset value, beginning of year $21.43
Income from investment operations
Net investment income .13
Net realized and unrealized gain
(loss) on investments (1.04)
Total from investment operations (.91)
Distributions from
Net investment income (.28)
Net realized gains (.11)
Total Distributions (.39)
Total increase (decrease) in
net asset value (1.30)
Net asset value, end of year $20.13
Total return<F4> (4.33%)
Ratio to average net assets:
Net investment income .65%
Total expenses<F5> --
Net expenses 1.27%
Expenses reimbursed and/or waived --
Portfolio turnover 94%
Net assets, end of period (in thousands) $92,970
Number of shares outstanding
at end of year (in thousands) 4,620
<F4>Total return is not annualized and does not reflect deduction of
Class A front-end sales charges. Total return prior to 1989 is not
audited.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
were included in the ratio.
Equity Portfolio Class A Shares
Year Ended
September 30, 1994
Net asset value, beginning of year $21.43
Income from investment operations
Net investment income .13
Net realized and unrealized gain
(loss) on investments (1.04)
Total from investment operations (.91)
Distributions from
Net investment income (.28)
Net realized gains (.11)
Total Distributions (.39)
Total increase (decrease) in
net asset value (1.30)
Net asset value, end of year $20.13
Total return<F4> (4.33%)
Ratio to average net assets:
Net investment income .65%
Total expenses<F5> --
Net expenses 1.27%
Expenses reimbursed and/or waived --
Portfolio turnover 94%
Net assets, end of period (in thousands) $92,970
Number of shares outstanding
at end of year (in thousands) 4,620
<F4>Total return is not annualized and does not reflect deduction of
Class A front-end sales charges. Total return prior to 1989 is not
audited.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
were included in the ratio.
Equity Portfolio Class A Shares
Year Ended
September 30, 1993
Net asset value, beginning of year $20.03
Income from investment operations
Net investment income .21
Net realized and unrealized gain
(loss) on investments 1.36
Total from investment operations 1.57
Distributions from
Net investment income (.17)
Net realized gains --
Total Distributions (.17)
Total increase (decrease) in
net asset value 1.40
Net asset value, end of year $21.43
Total return<F4> 7.82%
Ratio to average net assets:
Net investment income 1.06%
Total expenses<F5> --
Net expenses 1.13%
Expenses reimbursed and/or waived --
Portfolio turnover 43%
Net assets, end of period (in thousands) $85,042
Number of shares outstanding
at end of year (in thousands) 3,968
<F4>Total return is not annualized and does not reflect deduction of
Class A front-end sales charges. Total return prior to 1989 is not
audited.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
were included in the ratio.
Equity Portfolio Class A Shares
Year Ended
September 30, 1992
Net asset value, beginning of year $18.89
Income from investment operations
Net investment income .17
Net realized and unrealized gain
(loss) on investments 1.20
Total from investment operations 1.37
Distributions from
Net investment income (.23)
Net realized gains --
Total Distributions (.23)
Total increase (decrease) in
net asset value 1.14
Net asset value, end of year $20.03
Total return<F4> 7.36%
Ratio to average net assets:
Net investment income 1.02%
Total expenses<F5> --
Net expenses 1.17%
Expenses reimbursed and/or waived --
Portfolio turnover 24%
Net assets, end of period (in thousands) $64,629
Number of shares outstanding
at end of year (in thousands) 3,226
<F4>Total return is not annualized and does not reflect deduction of
Class A front-end sales charges. Total return prior to 1989 is not
audited.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
were included in the ratio.
Equity Portfolio Class A Shares
Year Ended
September 30, 1991
Net asset value, beginning of year $15.86
Income from investment operations
Net investment income .44
Net realized and unrealized gain
(loss) on investments 2.96
Total from investment operations 3.40
Distributions from
Net investment income (.37)
Net realized gains --
Total Distributions (.37)
Total increase (decrease) in
net asset value 3.03
Net asset value, end of year $18.89
Total return<F4> 21.88%
Ratio to average net assets:
Net investment income 1.94%
Total expenses<F5> --
Net expenses 1.04%
Expenses reimbursed and/or waived .18%
Portfolio turnover 27%
Net assets, end of period (in thousands) $42,642
Number of shares outstanding
at end of year (in thousands) 2,258
<F4>Total return is not annualized and does not reflect deduction of
Class A front-end sales charges. Total return prior to 1989 is not
audited.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
were included in the ratio.
Equity Portfolio Class A Shares
Year Ended
September 30, 1990
Net asset value, beginning of year $18.07
Income from investment operations
Net investment income .32
Net realized and unrealized gain
(loss) on investments (2.24)
Total from investment operations (1.92)
Distributions from
Net investment income (.24)
Net realized gains (.05)
Total Distributions (.29)
Total increase (decrease) in
net asset value (2.21)
Net asset value, end of year $15.86
Total return<F4> (10.80%)
Ratio to average net assets:
Net investment income 2.64%
Total expenses<F5> --
Net expenses .78%
Expenses reimbursed and/or waived .50%
Portfolio turnover 31%
Net assets, end of period (in thousands) $22,212
Number of shares outstanding
at end of year (in thousands) 1,401
<F4>Total return is not annualized and does not reflect deduction of
Class A front-end sales charges. Total return prior to 1989 is not
audited.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
were included in the ratio.
Equity Portfolio Class A Shares
Year Ended
September 30, 1989
Net asset value, beginning of year $14.58
Income from investment operations
Net investment income .40
Net realized and unrealized gain
(loss) on investments 3.40
Total from investment operations 3.80
Distributions from
Net investment income (.31)
Net realized gains --
Total Distributions (.31)
Total increase (decrease) in
net asset value 3.49
Net asset value, end of year $18.07
Total return<F4> 26.69%
Ratio to average net assets:
Net investment income 2.48%
Total expenses<F5> --
Net expenses .21%
Expenses reimbursed and/or waived 1.17%
Portfolio turnover 8%
Net assets, end of period (in thousands) $7,927
Number of shares outstanding
at end of year (in thousands) 439
<F4>Total return is not annualized and does not reflect deduction of
Class A front-end sales charges. Total return prior to 1989 is not
audited.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
were included in the ratio.
Equity Portfolio Class A Shares
Year Ended
September 30, 1988
Net asset value, beginning of year $15.33
Income from investment operations
Net investment income .87
Net realized and unrealized gain
(loss) on investments (1.53)
Total from investment operations (.66)
Distributions from
Net investment income (.08)
Net realized gains (.01)
Total Distributions (.09)
Total increase (decrease) in
net asset value (.75)
Net asset value, end of year $14.58
Total return<F4> (4.26%)
Ratio to average net assets:
Net investment income 2.85%
Total expenses<F5> --
Net expenses --
Expenses reimbursed and/or waived 2.49%
Portfolio turnover 23%
Net assets, end of period (in thousands) $1,711
Number of shares outstanding
at end of year (in thousands) 117
<F4>Total return is not annualized and does not reflect deduction of
Class A front-end sales charges. Total return prior to 1989 is not
audited.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
were included in the ratio.
Equity Portfolio Class A Shares
From Inception
(August 24, 1987) to
September 30, 1987
Net asset value, beginning of year $15.00
Income from investment operations
Net investment income .02
Net realized and unrealized gain
(loss) on investments .31
Total from investment operations .33
Distributions from
Net investment income --
Net realized gains --
Total Distributions --
Total increase (decrease) in
net asset value .33
Net asset value, end of year $15.33
Total return<F4> 25.56%(a)
Ratio to average net assets:
Net investment income .31%(a)
Total expenses<F5> --
Net expenses .50%(a)
Expenses reimbursed and/or waived 1.50%(a)
Portfolio turnover --
Net assets, end of period (in thousands) $265
Number of shares outstanding
at end of year (in thousands) 17
<F4>Total return is not annualized and does not reflect deduction of
Class A front-end sales charges. Total return prior to 1989 is not
audited.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
were included in the ratio.
(a) Annualized
Equity Portfolio Class C Shares
Year Ended
September 30, 1995
Net asset value, beginning of year $19.98
Income from investment operations
Net investment income (.03)
Net realized and unrealized gain
(loss) on investments 2.05
Total from investment operations 2.02
Distributions from
Net investment income (.09)
Net realized gains (1.25)
Total Distributions (1.34)
Total increase (decrease) in
net asset value .68
Net asset value, end of year $20.66
Total return<F4> 11.16%
Ratio to average net assets:
Net investment income (loss) (.84%)
Total expenses<F5> 2.51%
Net expenses 2.50%
Expenses reimbursed and/or waived 1.07%
Portfolio turnover 35%
Net assets, end of period (in thousands) $1,802
Number of shares outstanding
at end of year (in thousands) 87
<F4>Total return is not annualized and does not reflect deduction of
Class A front-end sales charges. Total return prior to 1989 is not
audited.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
were included in the ratio.
Equity Portfolio Class C Shares
From Inception
(March 1, 1994) to
September 30, 1994
Net asset value, beginning of year $22.12
Income from investment operations
Net investment income (.06)
Net realized and unrealized gain
(loss) on investments (2.08)
Total from investment operations (2.14)
Distributions from
Net investment income --
Net realized gains --
Total Distributions --
Total increase (decrease) in
net asset value (2.14)
Net asset value, end of year $19.98
Total return<F4> (9.14%)
Ratio to average net assets:
Net investment income (1.06%)(a)
Total expenses<F5> --
Net expenses 2.75%(a)
Expenses reimbursed and/or waived 4.60%(a)
Portfolio turnover 94%
Net assets, end of period (in thousands) $670
Number of shares outstanding
at end of year (in thousands) 34
<F4>Total return is not annualized and does not reflect deduction of
Class A front-end sales charges. Total return prior to 1989 is not
audited.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
were included in the ratio.
INVESTMENT OBJECTIVES AND POLICIES
The Fund is designed for individual and institutional investors, including ERISA
fiduciaries, seeking growth of capital or current income through investment in
enterprises that make a significant contribution to society through their
products and services and through the way they do business. The Managed Growth
Portfolio is designed for long-term term cash management and stability of
principal. The Bond Portfolio is designed for current income and preservation of
capital. The Equity Portfolio is designed for capital growth.
Money Market Portfolio The Money Market Portfolio seeks to provide the highest
level of current income, consistent with liquidity, safety and security of
capital, through investment in money market instruments, including repurchase
agreements with recognized securities dealers and banks secured by such
instruments, and reverse repurchase agreements, all selected in accordance with
the Fund's investment and social criteria.
The Money Market Portfolio attempts to maintain a constant net asset value of
$1.00 per share. term money market instruments which may include: obligations
issued or guaranteed as to principal by the United States Government, its
agencies and instrumentalities; U.S. dollar-denominated certificates of deposit,
time deposits and bankers' acceptances of U.S. banks, generally banks with
assets in excess of $1 billion; taxable municipal securities, including variable
rate demand notes ; and commercial paper (including participation interests in
loans extended by banks to issuers of commercial paper) that at the date of -1
by Standard & Poor's Ratings Group ("S&P") or Prime-1 by Moody's Investors
Service, Inc. "Moody's"), or, if not rated, is of comparable quality.
Managed Growth Portfolio
The Managed Growth Portfolio seeks to achieve a total return above the rate of
inflation through an actively managed portfolio of stocks, bonds and money
market instruments (including repurchase agreements secured by such instruments)
selected with a concern for the investment and social impact of each investment.
It is not the policy of the Managed Growth Portfolio to take risks to obtain
speculatively or aggressively high returns. There is no predetermined percentage
of assets allocated to either stocks or bonds or money market instruments.
Investments are generally selected by the two active Sub-Advisors, U.S. Trust
Company of Boston and NCM Capital, subject to direction and control by the
Fund's 's fixed-income assets. The Investment Advisors determine the mix for the
Managed Growth Portfolio depending upon their view of market conditions and the
economic outlook.
The Managed Growth Portfolio may purchase both common and preferred stock. The
Portfolio normally invests in bonds which are considered investment grade,
including bonds which are direct or indirect obligations of the U.S. Government,
or which at the date of investment are rated AAA, AA, A, or BBB by S&P or Aaa,
Aa, A, or Baa by Moody's. Bonds rated Baa or BBB are considered medium grade
obligations, possess speculative characteristics, and are rated obligations
(those rated below BBB, which are considered non-investment grade securities)
but no more than 20% of its assets may be invested in obligations rated lower
than B. The Portfolio may purchase without limitation bonds which are unrated
but of comparable quality to bonds rated B or better as determined by the
Advisors under the supervision of the Board of Trustees. The Managed Growth
Portfolio does not currently hold or intend to invest more than 5% of its net
assets in non-investment grade securities (commonly referred to as "junk
bonds"). See the Statement of Additional Information for additional information
concerning bond ratings.
Bond Portfolio
The Bond Portfolio seeks to provide as high a level of current income as is
consistent with prudent investment risk and preservation of capital through
investment in bonds and other straight debt securities, including taxable
municipal securities, selected pursuant to the Fund's investment and social
criteria. The Bond Portfolio is neither speculative nor conservative in its
investment policies and will take reasonable risks in seeking to achieve its
investment objective of current income and preservation of capital. Debt
intermediate-term, short-term, or any combination thereof, depending on the
Advisors' evaluation of current and anticipated market patterns and trends; the
Advisors expect that the Bond Portfolio's average weighted maturity will range
between 5 and 20 years. The value of the Portfolio will vary inversely with
changes in interest rates.
In seeking to achieve these objectives, it is anticipated that under normal
conditions the Bond Portfolio will invest at least 65% of the value of its
assets in publicly-traded straight debt securities which have an investment
grade rating of A or above as determined by a nationally recognized rating
service such as S&P or Moody's, or if unrated, determined to be of comparable
quality. The Portfolio may also invest in obligations issued or guaranteed by
the U.S. Government or its agencies or instrumentalities, or in cash and cash
equivalents. Up to 20% of the Bond Portfolio's total assets may be invested in
straight debt securities which are not rated within the four highest grades
(including bonds rated below Baa or BBB and unrated securities), in convertible
debt securities, convertible preferred and preferred stocks, or other
securities. Bonds rated Baa or BBB, which are considered medium grade
obligations, possess speculative characteristics, and are more susceptible to
changing market conditions. The Bond Portfolio does not currently hold or intend
to invest more than 5% of its net assets in non-investment grade securities
("junk bonds"). See the Statement of Additional Information for additional
information concerning bond ratings.
Equity Portfolio The Equity Portfolio seeks growth of capital through investment
in the equity securities of issuers within industries perceived to offer
opportunities for potential capital appreciation and which satisfy the Fund's
investment and social criteria. The Equity Portfolio is neither speculative nor
conservative in its investment policies and will take reasonable risks in
seeking to achieve its investment objective of growth of capital.
The Equity Portfolio normally invests at least 80% of the value of its net
assets in equity securities. Such securities include common stocks, convertible
securities and preferred stocks. For liquidity purposes or pending the
investment of the proceeds of the sale of its shares, the Equity Portfolio may
invest up to 20% of the value of its assets in money market instruments,
including: obligations of the U.S. Government, its agencies and
instrumentalities; certificates of deposit of banks, generally, those having
total assets of at least one billion dollars; and commercial paper or other
corporate notes of investment grade quality. Such securities may be purchased
subject to repurchase agreements with recognized securities dealers and banks.
If the Equity Portfolio has assumed a temporary defensive posture, there is no
limitation on the percentage of its assets which may be invested in money market
instruments. The Equity Portfolio does not currently hold or intend to invest
more than 5% of its net assets in non-investment grade debt securities.
ALL INVESTMENTS ARE SELECTED WITH A CONCERN FOR THE SOCIAL IMPACT OF EAC
INVESTMENT
The Fund invests in accordance with its philosophy that long-term rewards to
investors will come from those organizations whose products, services, and
methods enhance the human condition and the traditional American values of
individual initiative, equality of opportunity and cooperative effort.
The Fund has developed the following criteria for the selection of organizations
in which it invests. The Fund recognizes, however, that these criteria represent
standards of behavior which few, if any, organizations totally satisfy and that,
as a matter of practice, evaluation of a particular organization in the context
of these criteria will Advisors.ubjective judgment by the Fund's Investment
Advisor and Sub-Advisors.
Given these considerations, the Fund seeks to invest in a producer or service
provider which:
1. Delivers safe products and services in ways which sustain our natural
environment. For example, the Fund looks for companies that produce energy from
renewable resources, while avoiding consistent polluters. 2. Is managed with
participation throughout the organization in defining and achieving objectives.
For example, the Fund looks for companies that offer employee stock ownership or
profit-sharing plans. 3. Negotiates fairly with its workers, provides an
environment supportive of their wellness, does not discriminate on the basis of
race, gender, religion, age, disability, ethnic origin, or sexual orientation,
does not consistently violate regulations of the Equal Employment Opportunity
Commission, and provides opportunities for women, disadvantaged minorities, and
others for whom equal opportunities have often been denied. For example, the
Fund considers both unionized and non-union firms with good labor relations. 4.
Fosters awareness of a commitment to human goals, such as creativity,
productivity, self-respect and responsibility, within the organization and the
world, and continually recreates a context within which these goals can be
realized. For example, the Fund looks for companies with an above average
commitment to community affairs and charitable giving.
The Fund will not invest in an issuer which the Advisors determine to be
significantly engaged in:
1. The production of nuclear energy or the manufacture of equipment to
produce nuclear energy.
2. Business activities in support of repressive regimes.
3. The manufacture of weapon systems.
The Fund will not, as a matter of operating policy which may be changed without
the approval of a majority of the outstanding shares, invest in an issuer
primarily engaged in the manufacture of alcoholic beverages or tobacco products,
or the operation of gambling casinos.
The Fund believes that social and technological change will continue to
transform America and the world for the balance of this century. Those
enterprises which exhibit a social awareness measured in terms of the above
attributes and considerations should be better prepared to meet future societal
needs for goods and services. By responding to social concerns, these
enterprises should maintain flexibility and further social goals. In so doing
they should not only avoid the liability that may be incurred when a product or
service is determined to have a negative social impact or has outlived its
usefulness, but also be better positioned to develop opportunities to make a
profitable contribution to society. These enterprises should be ready to respond
to external demands and ensure that over the longer term they will be viable to
provide a positive return to both investors and society as a whole.
INVESTMENT SELECTION PROCESS
Investments are selected on the basis of their ability to contribute to the
dual objectives of the Fund.
Potential investments are first screened for financial soundness and then
evaluated according to the Fund's social criteria. To the greatest extent
possible investments are made in companies exhibiting unusual, positive
accomplishments with respect to one or more of the criteria. Companies must meet
the Fund's minimum standards for all the criteria. With respect to government
securities, the Fund invests primarily in debt obligations issued or guaranteed
by agencies or instrumentalities of the U.S. Government whose purposes further
or are compatible with the Fund's social criteria, such as obligations of the
Student Loan Marketing Association, rather than general obligations of the U.S.
Government, such as Treasury securities. It should be noted that the Fund's
social criteria tend to limit the availability of investment opportunities more
than is customary with other investment companies.
The selection of an organization for investment by a Portfolio does not
constitute endorsement or validation by the Fund, nor does the exclusion of an
organization necessarily reflect failure to satisfy the Fund's social criteria.
Investors in the Fund are invited to send a brief description of companies they
believe might be suitable for investment by the Fund.
ADDITIONAL INVESTMENT POLICIES
As a matter of fundamental investment policy which cannot be changed without
shareholder approval, no more than 25% of the value of a Portfolio's assets may
be invested in any one industry, no more than 5% of a Portfolio's assets may be
invested in any one company, nor may a Portfolio, or the Fund in the aggregate,
purchase more than 10% of the voting securities of any issuer.
The Managed Growth, Bond and Equity Portfolios each can use various techniques
to increase or decrease its exposure to changing security prices, interest
rates, or other factors that affect security values. These techniques may
involve derivative transactions such as buying and selling options and futures
contracts and leveraged notes, entering into swap agreements, and purchasing
indexed securities. The Portfolios can use these practices either as
substitution or as protection against an adverse move in the Portfolios to
adjust the risk and return characteristics of the Portfolios. If the Advisor
and/or Sub-Advisor judges market conditions incorrectly or employs a strategy
that does not correlate well 's investments, or if the counterparty to the
transaction does not perform as promised, these techniques could result in a
loss. These techniques may increase the volatility of a Portfolio and may
involve a small investment of cash relative to the magnitude of the risk
assumed. Any instruments determined to be illiquid are subject to the Fund's 10%
restriction on illiquid securities. See the SAI for more detail about these
strategies.
The Fund may engage in repurchase agreements and reverse repurchase agreements.
In a repurchase agreement, the Fund buys a security subject to the right and
obligation to sell it back at a higher price. In order to minimize any risk
involved, the Fund engages in such transactions only with recognized securities
dealers determined by the Advisor to present a minimal credit risk. Repurchase
agreements are fully collateralized and always have a maturity of less than one
year. In a reverse repurchase agreement, the Fund sells a security subject to
the right and obligation to buy it back at a higher price. The Fund then invests
the proceeds from the transaction in another obligation in which it is
authorized to invest. For reverse repurchase agreements, the Fund maintains in a
segregated account liquid assets equal in value to the repurchase price.
Each Portfolio may borrow money from banks (and pledge its assets to secure such
borrowing) for temporary or emergency purposes, but not for leverage. Such
borrowing may not exceed 10% of the value of that Portfolio's total assets.
The Fund has adopted the following operating (i.e., Non-fundamental) investment
policies which may be changed by the Board of Trustees without
shareholder approval:
No Portfolio may purchase or hold illiquid securities if more than 10% of the
value of that Portfolio's net assets would be invested in such securities.
Each Portfolio may invest up to 25% of its assets in the securities of foreign
issuers. The or other receipts evidencing ownership of foreign securities, such
as International Depository Receipts and Global Depository Receipts. ADRs are
U.S. dollar-denominated and Foreign securities may involve additional risks,
including currency fluctuations, risks relating to political or economic
conditions, and the potentially less stringent investor protection and
disclosure standards of foreign markets. These factors could make foreign
investments, especially those in developing countries, less liquid and more
volatile. In addition, the costs of foreign investing, including withholding
taxes, brokerage commisions and custodial costs are generally higher than for
U.S. investments. By investing in ADRs may avoid some currency and some
liquidity risks. The information available for ADRs is subject to the more
uniform and more exacting accounting, auditing and financial reporting standards
of the domestic market or exchange on which they are traded. The Money Market
Portfolio may purchase only high quality U.S. dollar-denominated instruments.
For further information on the Fund's investment policies and restrictions, see
the Statement of Additional Information.
Special Equities and Private Placements
Due to the particular social objective of the Fund, opportunities may exist to
promote especially promising approaches to social goals through privately placed
investments. The Special Equities Committee of the Board of Trustees identifies,
evaluates, and selects certain of these investments, subject to ratification by
the Board. The private placement investments undertaken by the Fund, if any, may
be subject to a high degree of risk. Such investments may involve relatively
small and untried enterprises that have been selected in the first instance
because of some attractive social objectives or policies.
Many private placement investments have no readily available market and may
therefore be considered illiquid. Fund investments in private placements and
other securities for which market quotations are not readily available are
valued at fair market value under the direction and control of the Board.
High Social Impact Investments
Each Portfolio may invest a small portion of its respective assets in
investments in securities that offer a rate of return below the then prevailing
market rate and that present attractive opportunities for furthering the Fund's
social criteria ("High Social Impact Investments"); such High Social Impact
investments must be less than 1% of the 's assets. Such securities are typically
illiquid and unrated and generally considered non-investment grade debt
securities which involve a greater risk of default or price decline than
investment-grade securities. Through diversification and credit analysis and
limited maturity, investment risk can be reduced, although there can be no
assurance that losses will not occur. The High Social Impact Investments
Committee of the Board identifies, evaluates, and selects these investments,
subject to ratification by the Board.
YIELD AND TOTAL RETURN
The Portfolios may advertise different types of yield and total return
performance, which is calculated separately for each class. All performance
figures are based on historical earnings and are not intended to indicate future
performance. Further information about the 's performance is contained in its
Annual Report to Shareholders, which may be obtained without charge.
Money Market Portfolio
The Money Market Portfolio may advertise "yield" and "effective yield." The
"yield" of the Fund refers to the actual income generated by an investment in
the Portfolio over a particular base period, stated in the advertisement. If the
base period is less than one year, the yield will be "annualized." That is, the
amount of income generated by the investment during the base period is assumed
to be generated over a one-year period and is shown as a percentage of the
investment. The "effective yield" is calculated like yield, but assumes
reinvestment of earned income. The effective yield will be slightly higher than
the yield because of the compounding effect of this assumed reinvestment.
Bond Portfolio
Yield measures the Bond Portfolio's current investment performance for each
class, that is, the rate of income on its portfolio investments divided by the
share price of the class. Yield is computed by annualizing the result of
dividing the net investment income per share over a 30-day period by the maximum
offering price per share for that class on the last day of that period. Yields
are calculated according to accounting methods that are standardized for all
stock and bond funds.
Managed Growth, Bond, and Equity Portfolios
Total return differs from yield in that yield figures measure only the income
component of a Portfolio's investments, while total return includes not only the
effect of income dividends but also any change in net asset value, or principal
amount, during the stated period. The total return of a class shows its overall
change in value, including changes in share price and assuming all of its
dividends and capital gain distributions are reinvested. A cumulative total
return reflects the performance of the class over a stated period of time. An
average annual total return reflects the hypothetical annual compounded return
that would have produced the same cumulative total return if the performance had
been constant over the entire period. Because average annual returns tend to
smooth out variations in the returns, you should recognize that they are not the
same as actual year-by-year results. Both types of total return for Class A
shares usually will include end sales charge. Of course, total returns will be
higher if sales charges are not taken into account. Quotations of "overall
return" do not reflect deduction of the sales charge. You should consider
overall return figures only if you qualify for a reduced sales charge, or for
purposes of comparison with comparable figures which also do not reflect sales
charges, such as mutual fund averages compiled by Lipper Analytical Services,
Inc.
MANAGEMENT OF THE FUND
The Board of Trustees supervises the Fund's activities and reviews its contracts
with companies that provide the Fund with services.
The Fund is an open-end diversified management investment company, organized as
a Massachusetts business trust on March 15, 1982.
The Fund is not required to hold annual shareholder meetings, but special
meetings may be called for certain purposes such as electing Trustees, changing
fundamental policies, or approving a management contract. As a shareholder, you
receive one vote for each share you own, except that matters affecting classes
differently, such as Distribution Plans, will be voted on separately by the
affected class(es).
Board of Trustees
REBECCA ADAMSON
President, First Nations Development Institute
RICHARD L. BAIRD, JR.
Director of Finance, Family Health Council, Inc.
JOHN G. GUFFEY, JR.
Chair, Calvert Social Investment Foundation
Treasurer and Director, Silby, Guffey & Co., Inc.
JOY V. JONES, Esq.
Attorney and Entertainment Manager
TERRENCE J. MOLLNER, Ed.D.
Founder and Chair, Trusteeship Institute, Inc.
SYDNEY AMARA MORRIS
Senior Minister, Unitarian Church of Vancouver, Canada
CHARLES T. NASON
Chairman, President, and Chief Executive Officer, The Acacia Group
D. WAYNE SILBY
President, Secretary, and Director, Silby, Guffey & Co., Inc.
CLIFTON S. SORRELL, JR.
President, Calvert Group, Ltd. and its subsidiaries
Advisory Council
The Advisory Council is a resource to the Board of Trustees regarding
communication networks for the Fund and the application and refinement of the
Fund's social criteria.
TIMOTHY SMITH
(Chair) Executive Director, Interfaith Center on Corporate Responsibility
JULIAN BOND
Visiting Professor, Harvard University; Distinguished Professor, American
University
ROBERT BROWNE
President, Twenty-First Century Foundation
WILLIAM J. BYNUM
President and CEO, Enterprise Corporation for the Delta
MARIAN WRIGHT EDELMAN
President & Founder, Children's Defense Fund
MICHAEL FISCHER
Executive Director, California State Coastal Conservancy
RANDALL FORSBERG
Executive Director, Institute for Defense and Disarmament Studies
ELIZABETH HARRIS
Vice President, UNC Partners, Inc.
SOPHIA BRACEY HARRIS
Founder and Executive Director, The Federation of Childcare Centers of
Alabama, Inc.
JAMES E. HEARD
President, Institutional Shareholder Services, Inc.
HAZEL HENDERSON
Independent Futurist and Author
ERICA HUNT
Senior Program Officer, New World Foundation
GRACE LECLAIR
Writer, Consultant and Theorist Concerning the Impacts of Economics on Family
and Community Life
JESSICA LIPNACK
President, The Networking Institute, Inc.
AMORY LOVINS
Director of Research, Rocky Mountain Institute
L. HUNTER LOVINS
President & Executive Director, Rocky Mountain Institute
ROBERT CARTER RANDOLPH
Of Counsel, Hendricks & Lewis
RUSTUM ROY
Professor of Geochemistry, Pennsylvania State University
BYRON RUSHING
State Representative, Massachusetts
MARC DAVID SARKADY
Leadership Consultant on Values & Visions to Renew Corporations & Governments
GAIL SNOWDEN
Division Executive, First Community Bank, Bank of Boston
JEFFREY STAMPS
Chairman, The Networking Institute, Inc.
THOMAS STONEBACK, Vice President and Chief Administrative Officer, Rodale
Press, Inc.
ERIC UTNE
Publisher and Editor, The Utne Reader
DIANE WHITE
Owner, Blackberry
D. Wayne Silby, Chair of the Fund's Board of Trustees, and Robert B. Zevin,
Senior Vice President, U.S. Trust Company, serve as ex officio members of the
Advisory Council. Mr. Smith is the chair of the Advisory Council.
Portfolio Managers
Managed Growth Portfolio
The Managed Growth Portfolio is managed by multiple investment sub-advisors,
effective the Portfolio's shareholders on August 30, 1995. With the
multi-manager approach, there will be several investment strategies in place at
any given time in order to help the Portfolio pursue its investment objectives.
The Managed Growth Portfolio may employ "growth managers," who generally
concentrate on stocks that have demonstrated, or are expected to produce,
earnings growth rates significantly greater than the market as a whole, as well
as "value managers," who tend to make stock selections on the basis of perceived
relative value as determined by a defined model in a bottom-up approach.
Specifically, CAM has retained a pool of five investment sub-advisors
("Sub-Advisors"), including U.S. Trust, to manage the Managed Growth
Portfolio's assets, though they will not necessarily be manging the Portfolio's
money at the same time, CAM has retained two of the five companies, U.S.
Trust and NCM Capital Management Group, Inc., to manage assets at this time,
and CAM manages a portion of the fixed-income assets itself. Brown Capital
Management, Inc., Fortaleza Asset Management, Inc. and Frontier Capital
Management, Inc. are not currently managing Portfolio assets.
Bond Portfolio
Cheryl Smith, Vice President of U.S. Trust is the portfolio manager for the Bond
Portfolio. Ms. Smith joined U.S. Trust in 1992. In addition to the management of
the Bond Portfolio, her duties at U.S. Trust include management of institutional
and individual client investment portfolios and integration of client social
criteria into the portfolio management process. She served as Vice President of
Franklin Research & Development from 1987 to 1992. Ms. Smith has managed the
Bond Portfolio since August 1994. She is a Chartered Financial Analyst and holds
a Ph.D. in Economics from Yale University.
Equity Portfolio
Philip J. Schettewi, Managing Partner, Vice President, and Chief Portfolio
Strategist of Loomis, Sayles & Company, L.P., is the portfolio manager for the
Equity Portfolio. Mr. Schettewi is a Chartered Financial Analyst, and has 12
years experience in the investment business.
Calvert Group is one of the largest investment management firms in the
Washington, D.C. area
Calvert Group, Ltd., parent of the Fund's investment advisor, transfer agent,
and distributor, is a subsidiary of Acacia Mutual Life Insurance Company of
Washington, D.C. Calvert Group is one of the largest investment management firms
in the Washington, D.C. area. Calvert Group, Ltd. and its subsidiaries are
located at 4550 Montgomery Avenue, Suite Calvert Group managed and administered
assets in excess of $4.8 billion and more than 200,000 shareholder and depositor
accounts.
Calvert Asset Management serves as Advisor to the Fund.
Calvert Asset Management Company, Inc. (the "Advisor") is the Fund's investment
advisor. The Advisor provides the Fund with investment supervision and
management, administrative services and office space; furnishes executive and
other personnel to the Fund; and pays the salaries and fees of all Trustees who
are affiliated persons of the Advisor. The Advisor may also assume and pay
certain advertising and promotional expenses of the Fund and reserves the right
to compensate broker-dealers in return for their promotional or administrative
services.
Asset management of the Managed Growth Portfolio will be by a team headed by
Reno J. Martini, Sr. Vice President and Chief Investment Officer. Mr. Martini
oversees the management of all Calvert portfolios. He has extensive experience
evaluating and purchasing municipal securities.
U.S. Trust
"U.S. Trust") is a Sub-Advisor to the Managed Growth and Bond Portfolios. U.S.
Trust also 's Money Market Portfolio. U.S. Trust is a Massachusetts-chartered
commercial bank with full trust powers. It is wholly-owned and the principal
subsidiary of UST Corp., a Massachusetts bank holding company. It is located at
30 Court Street, Boston, Massachusetts 02108. The Trust Department of U.S. Trust
has managed funds as a fiduciary since 1895. Robert Zevin, Senior Vice
President, Portfolio Strategist and Economist for U.S. Trust's Portfolio
assets.
He has been with U.S. Trust since 1975. Dr. Zevin is a founder of the
founder-member of the Advisory Council of the Fund. He has taught at six
colleges and universities, including Harvard, University of California at
Berkeley, and Columbia University, and has authored several articles and books.
NCM Capital Management Group, Inc.
NCM Capital Management Group, Inc. manages the equity portion of the
Managed Growth Portfolio as of July 1, 1995. NCM was founded by Maceo K. Sloan
in 1986 as a subsidiary of North Carolina Mutual Life Insurance Company, which
was established by Mr. Sloan's ancestors in 1898 and is one of the oldest and
largest minority-owned financial institutions in the country. NCM has been an
employee-owned subsidiary of Sloan Financial Group since 1991. Sixty percent of
Sloan Financial Group is co-owned by Mr. Sloan and Justin E. Beckett, who is
Executive Vice President and a Director of NCM. NCM is one of the largest
minority-owned investment management firms in the country, and provides products
in equity, fixed income and balanced portfolio management. It is also one of the
industry leaders in the employment and training of minority and women investment
professionals.
NCM's portfolio management team consists of seven members. Maceo K. Sloan, CFA,
FLMI, is Chairman, President, Chief Executive Officer, and Chief Investment
Officer of the company. He received a BA from Morehouse College, and MBA from
Georgia State University, and a JD from North Carolina Central University. He is
a Chartered Financial Analyst, and is Fellow of the Life Management Institute.
Mr. Sloan is a regular panelist on the PBS program Wall Street Week in Review
and has been a panelist and chaired several conferences concerning investment
opportunities in South Africa, such as the RCB International Seminar and the
Pensions 2000 on South Africa.
Clifford D. Mpare, CFA, CMA, is Senior Vice President and Director of
Investments. He received his BComm from St. Mary's University and an MBA from
Dalhousie University. He is a Chartered Financial Analyst and a Certified
Management Accountant. Prior to joining NCM, Mr. Mpare was a Senior Analyst with
First Union Corporation's private equity department, where he specialized in the
valuation of unlisted securities. He serves on the board of the Association of
Investment Management and Research, and is a member of the North Carolina
Society of Financial Analysts, the Institute of Chartered Financial Analysts,
the Institute of Management Accountants, and the Society of Management
Accountants of Canada.
Lawrence J. Verny is a Vice President. He received his BS from Fairleigh
Dickinson University and is a CFA candidate. Wendell E. Mackey is a Vice
President. He received his BBA from Howard University, and an MM from the J.L.
Kellogg Graduate School of Management at Northwestern University. Mr. Mackey is
a CFA candidate. Stephon A. Jackson, CFA, is a Vice President and Director of
Research. He received his BS from the University of North Carolina and his MBA
from The Wharton School of the University of Pennsylvania. He is a Chartered
Financial Analyst. David C. Carter is a Vice President, and received his BS and
MBA from New York University. Mr. Carter is a CFA candidate. Lorenzo Newsome,
Jr. is a Vice President. He received his BS from the University of Pittsburgh,
an MA from Bowie State University, and is a CFA candidate.
Brown Capital Management, Inc.
Managed Growth Portfolio
Brown Capital Management, Inc. of 809 Cathedral Street, Baltimore, Maryland,
believes that capital can be enhanced in times of opportunity and preserved in
times of adversity without timing the market. The firm uses a bottom-up approach
that incorporates growth-adjusted price earnings. Stocks purchased are generally
undervalued and have momentum, have earnings-per-share growth rates greater than
the market, are more profitable than the cap growth stocks.ios. The firm
concentrates on mid-/large-cap growth stocks.
Eddie C. Brown, Portfolio Manager, is founder and President of Brown Capital
Management. He has over 22 years of investment experience, having served as Vice
President and Portfolio Manager for 10 years at T. Rowe Price Associates
immediately prior to starting his own firm. Mr. Brown holds a BS in Electrical
Engineering from Howard University, an MS in Business Administration from the
Indiana University School of Business. Additionally, he is Chartered Financial
Analyst and Chartered Investment Counselor. Mr. Brown is active in community
affairs. He is currently a Commissioner for Maryland Public Broadcasting (a
Gubernatorial appointment), member of the Board of Directors of the Baltimore
Community Foundation (where he chairs the Investment Committee for the
foundation's $30 million endowment), member of the Dean's Advisory Council of
Indiana University School of Business, and a member of The President's
Roundtable.
Joel Oppenheim, Portfolio Manager and Executive Vice President, has had 24 years
investment experience for institutions including the State of Maryland, T. Rowe
Price Associates, Inc., the National Rural Electric Pension and Brown Capital
Management. He holds a B.S. in Economics and Juris Doctor from the University of
Wisconsin, and is a Chartered Financial Analyst.
Robert E. Hall, Portfolio Manager and Sr. Vice President, has over 30 years
investment experience including 18 years with T. Rowe Price Associates, Inc.,
seven years with Emerging Growth Partners, Inc., and four years with The
Investment Center prior to joining Brown Capital Management. Mr. Hall is a
former Trustee of the Peabody Institute of Johns Hopkins University.
Fortaleza Asset Management, Inc.
Managed Growth Portfolio
Fortaleza Asset Management, Inc. of 200 West Adams, Suite 1901, Chicago,
Illinois, 60606, is a small-cap growth manager that bases its investment
principles on three key elements: (1) a proprietary stock valuation system that
incorporates technical and market sentiment indicators to determine optimal buy
points; (2) an emphasis on the preservation of capital through the
implementation of a strict selling discipline to lock in capital gains and
reduce losses; and (3) a discipline that does not force equity commitment in
overvalued markets. The investment approach is based on a bottom-up selection
process, and concentrates on small-cap growth stocks.
Margarita Perez is the founder, President and Portfolio Manager of Fortaleza,
and has over 13 years of investment experience. Prior to forming Fortaleza, Ms.
Perez was Vice President and Portfolio Manager for Monetta Financial Services,
Inc., where she was directly involved in the management of equity accounts
totaling in excess of $100 million. Ms. Perez is a native of Puerto Rico and has
lived in the Chicago area since the late 1960s. She earned an MBA from DePaul
University School of Commerce. Ms. Perez is a member of various professional
organizations including the American Institute of CPAs, National Society of
Hispanic MBAs, Association for Investment Management and Research, and the
National Association of Securities Professionals. She is also a Trustee of the
Chicago Historical Society.
James Boves, also a Portfolio Manager, brings over 25 years of investment
management and research experience to Fortaleza. He has an MA in Economics from
Northern Illinois University and is a member of the Investment Analysts Society
in Chicago.
Frontier Capital Management Inc.
Managed Growth Portfolio
Frontier Capital Management is a Boston-based, independent investment management
firm. Founded in 1980, Frontier is a research driven firm specializing in the
management of growth-oriented portfolios with particular focus on the small to
medium capitalization sectors of the market. As of December 31, 1994 the firm
managed approximately $1.6 billion in client assets, including over $200 million
in portfolios subject to socially responsible guidelines. Frontier concentrates
on small-/mid-cap growth stocks. Frontier has a large team of investment and
trading professionals. Those responsible for investing assets of the Portfolio
would be determined at the time the Advisor determines to allocate to Frontier
the management of a portion of Portfolio assets.
Loomis, Sayles
("Loomis, Sayles") is the Sub-Advisor to the Equity Portfolio, effective
February 1, 1994. A private investment counsel firm founded in 1926, Loomis,
Sayles is organized as a limited partnership, controlled by New England Mutual
Life Insurance Company. The principal business address of Loomis, Sayles is One
Financial Center, Boston, Massachusetts 02111.
For its services during fiscal year 1995, the Advisor was entitled to and did
receive, pursuant to the Investment Advisory Agreement, 0.50% of the Money
Market Portfolio's, 0.65% of the Bond Portfolio's, and 0.70% and Equity
Portfolios' average daily net assets as investment advisory fees.
The Advisor receives a fee based on a percentage of the Fund's assets, and
for the Managed Growth and Equity Portfolios only, the performance. From
this, the Advisor pays the Sub-Advisor.
The Investment Advisory Agreement between the Fund and the Advisor, with respect
to the Managed Growth Portfolio, provides that the Advisor is entitled to a base
annual fee, payable monthly, of 0.70% of the Portfolio's average daily net
assets. Beginning January, 1997, the Advisor may earn (or have its base fee
reduced by) a performance adjustment based on the extent to which performance of
the Fund exceeds or trails the Relevant Index. The Relevant Indexes are as
follows:
CAM: Lehman Aggregate Bond Index
U.S. Trust - equity assets: Russell 3000
U.S. Trust - fixed income assets: Lehman Aggregate Bond Index
NCM: Standard & Poors 500 Stock Index
Brown: Standard & Poors 500 Stock Index
Fortaleza: Russell 2000
Frontier: 70% Russell 1000, 30% Russell 2000 (Blend)
Performance versus
Performance Fee
the Relevant Adjustment
Index
6% to Less than 12% 0.05%
12% to Less than 18% 0.10%
18% or more 0.15%
The Investment Advisory Agreement between the Fund and the Advisor, with respect
to the Equity Portfolio, provides that the Advisor is entitled to a base annual
fee, payable monthly performance fee of plus or minus .20%, based on the extent
to which performance of the Fund exceeds oS&P's 500 Composite Index:
Performance versus Performance Fee
the S&P's 500 Adjustment
Composite Index
6% to Less than 12% 0.07%
12% to Less than 18% 0.14%
18% or more 0.20%
Pursuant to an Investment Sub-Advisory Agreement with the Advisor, U.S. Trust
makes investment selections for the Bond Portfolio. For these services U.S.
Trust receives a sub-advisory fee from the Advisor based on a percentage of the
respective Portfolio's average daily net assets (other than High Social Impact
Investments), subject to a monthly minimum fee of $1,000. For fiscal 1995, the
Advisor paid U.S. Trust a fee of 0.28% of the assets of the Bond Portfolio. The
Advisor also pays a fee to U.S. Trust for providing social screening research
for the Money Market Portfolio.
Investment selections for a portion of the fixed-income assets of the
Managed Growth Portfolio are made by the Investment Advisor, CAM. The
Sub-Advisors make the investment selections for the remaining assets.
Currently, the active Sub-Advisors are U.S. Trust and NCM Capital.
Sub-advisory fees are paid by the Advisor and are equal to a base fee
("Base Fee") of 0.25% of the Managed Growth Portfolio's average daily net
assets, plus or minus a performance fee ("Performance Fee") as set forth in
the table above. Payment (or subtraction) of a Performance Fee is
conditioned on (1) the performance of the Portfolio as a whole having
exceeded (or trailed) The Lipper Balanced Fund Index ("Fund Index") during
the Performance Period; and (2) payment of the Performance Fee not causing
the Portfolio's performance to fall below the Fund Index.
Loomis, Sayles makes investment selections for the Equity Portfolio. It
receives a sub-advisory fee from the Advisor equal to a base fee ("Base
Fee") of 25% of the Equity Portfolio's average daily net assets, plus or
minus a performance fee ("Performance Fee") as set forth in the table
above. Loomis, Sayles also receives a 0.05% fee, paid by the Advisor (not
the Fund) for its assistance with the distribution of the Fund.
Calvert Distributors, Inc. serves as underwriter to market the Fund's shares.
Calvert Distributors, Inc. ("CDI") is the Fund's principal underwriter
and distributor. Under the terms of its underwriting agreement with
the Fund, CDI markets and distributes the Fund's shares and is
responsible for preparing advertising and sales literature, and
printing and mailing prospectuses to prospective investors.
The transfer agent keeps your account records.
Calvert Shareholder Services, Inc. is the Fund's transfer, dividend
disbursing and shareholder servicing agent.
SHAREHOLDER GUIDE
Opening An Account
You can buy shares of the Fund in several ways which are described here and in
the chart below.
An account application accompanies this prospectus. A completed and
signed application is required for each new account you open,
regardless of the method you choose for making your initial
investment. Additional forms may be required from corporations,
associations, and certain fiduciaries. If you have any questions or
need extra applications, call your broker, or Calvert Group at
800-368-2748. Be sure to specify which class you wish to purchase.
To invest in any of Calvert's tax-deferred retirement plans, please
call Calvert Group at 800-368-2748 to receive information and the
required separate application.
Alternative Sales Options
The Managed Growth, Bond, and Equity Portfolios each offer two classes
of shares:
Class A Shares - Front End Load Option
Class A shares are sold with a front-end sales charge at the time of
purchase. Class A shares are not subject to a sales charge when they
are redeemed.
Class C shares - Level Load Option
Class C shares are sold without a sales charge at the time of purchase
or redemption.
Class C shares have higher expenses
Each Portfolio bears some of the costs of selling its shares under
Distribution Plans adopted with respect to its Class A and Class C
shares pursuant to Rule 12b-1 under the 1940 Act. Payments under the
Class A Distribution Plan are limited to 0.35% annually of the average
daily net asset value of Class A shares. The Class C Distribution Plan
provides for the payment of an annual distribution fee to CDI of up to
0.75%, plus a service fee of up to 0.25%, for a total of 1.00% of the
average daily net assets attributable to their respective classes.
Considerations for deciding which class of shares to buy
Income distributions for Class A shares will probably be higher than
those for Class C shares, as a result of the distribution expenses
described above. (See also "Yield and Total Return.") You should
consider Class A shares if you qualify for a reduced sales charge
under Class A or if you plan to hold the shares for several years.
Class C shares are not available for investments of $1 million or more.
Class A Shares - Managed Growth and Equity Portfolios
Class A shares are offered at net asset value plus a front-end sales charge
as follows:
Concession to
As a % of t Dealers as
As a % of Net Amount a % of Amount
Amount of Investment Offering Invested Invested
Price
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Less than $50,000 4.75% 4.99% 4.00%
$50,000 but less than $100,000 3.75% 3.90% 3.00%
$100,000 but less than $250,000 2.75% 2.83% 2.25%
$250,000 but less than $500,000 1.75% 1.78% 1.25%
$500,000 but less than $1,000,000 1.00% 1.01% 0.80%
$1,000,000 and over 0.00% 0.00% 0.25%**
Class A Shares - Bond Portfolio
Class A shares are offered at net asset value plus a front-end sales charge
as follows:
Concession to
As a % of Dealers as
As a % of Net Amount a %of Amount
Amount of Investment Offering Price Invested Invested
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Less than $50,000 3.75% 3.90% 3.00%
$50,000 but less than $100,000 3.00% 3.09% 2.25%
$100,000 but less than $250,000 2.25% 2.30% 1.75%
$250,000 but less than $500,000 1.75% 1.78% 1.25%
$500,000 but less than $1,000,000 1.00% 1.01% 0.80%
$1,000,000 and over 0.00% 0.00% 0.25%**
**For new investments (new purchases but not exchanges) of $1 million
or more a broker-dealer will have the choice of being paid a finder's
fee by CDI in one of the following methods: (1) CDI may pay
broker-dealers, on a monthly basis for 12 months, an annual rate of
0.30%. Payments will be made monthly at the rate of 0.025% of the
amount of the investment, less redemptions; or (2) CDI may pay
broker-dealers 0.25% of the amount of the purchase; however, CDI
reserves the right to recoup any portion of the amount paid to the
dealer if the investor redeems some or all of the shares from the Fund
within thirteen months of the time of purchase.
Managed Growth, Bond and Equity Portfolios:
Sales charges on Class A shares may be reduced or eliminated in certain cases.
See Exhibit A to this prospectus.
The sales charge is paid to CDI, which in turn normally reallows a
portion to your broker-dealer. Upon written notice to dealers with
whom it has dealer agreements, CDI may reallow up to the full
applicable sales charge. Dealers to whom 90% or more of the entire
sales charge is reallowed may be deemed to be underwriters under the
Securities Act of 1933.
In addition to any sales charge reallowance, your broker- dealer, or
other financial service firm through which your account is held,
currently will be paid periodic service fees at an annual rate of up
to 0.25% of the average daily net asset value of Class A shares held
in accounts maintained by that firm.
Class A Distribution Plan
All Portfolios
The Fund has adopted a Distribution Plan with respect to its Class A
shares (the "Class A Distribution Plan "), which provides for payments
at a maximum annual rate of 0.35% (0.25% for the Money Market
Portfolio) of the average daily net asset value of Class A shares, to
pay expenses associated with the distribution and servicing of Class A
shares. Amounts paid by the Fund to CDI under the Class A Distribution
Plan are used to pay to dealers and others, including CDI salespersons
who service accounts, service fees at an annual rate of up to 0.25% of
the average daily net asset value of Class A shares, and to pay CDI
for its marketing and distribution expenses, including, but not
limited to, preparation of advertising and sales literature and the
printing and mailing of prospectuses to prospective investors. For the
fiscal year ended September 30, 1995, the Managed Growth, Bond, and
Equity Portfolios paid Class A Distribution Plan expenses of 22%,
0.19%, and 0.22% of average net assets, respectively. The Money Market
Portfolio did not pay any Distribution Plan expenses in fiscal 1995.
Each of the Distribution Plans may be terminated at any time by vote
of the Independent Trustees or by vote of a majority of the
outstanding voting shares of the respective class.
Class C Shares
Managed Growth, Bond and Equity Portfolios
Class C shares are not available through all dealers. Class C shares
are offered at net asset value, without a front-end sales charge or a
contingent deferred sales charge. Class C expenses are higher than
those of Class A.
Class C Distribution Plan
The Fund has adopted a Distribution Plan with respect to its Class C
shares (the "Class C Distribution Plan"), which provides for payments
at an annual rate of up to 1.00% of the average daily net asset value
of Class C shares, to pay expenses of the distribution and servicing
of Class C shares. Amounts paid by the Fund under the Class C
Distribution Plan are currently used by CDI to pay dealers and other
selling firms dealer-paid quarterly compensation at an annual rate of
up to 0.75%, plus a service fee as described above under "Class A
Distribution Plan, " of up to 0.25%, of the average daily net asset
value of each share sold by such others. For the 1995 fiscal year, the
Class C Distribution Plan expenses for Managed Growth, Bond, and
Equity Portfolios were 1.00%, 1.00%, and 1.00% of average net assets,
respectively.
Arrangements with Broker-Dealers and Others
All Portfolios and all classes
CDI may also pay additional concessions, including non-cash
promotional incentives, such as merchandise or trips, to dealers
employing registered representatives who have sold or are expected to
sell a minimum dollar amount of shares of the Fund and/or shares of
other Funds underwritten by CDI. CDI may make expense reimbursements
for special training of a dealer's registered representatives,
advertising or equipment, or to defray the expenses of sales contests.
Eligible marketing and distribution expenses may be paid pursuant to
the Fund's Rule 12b-1 Distribution Plan.
Dealers or others may receive different levels of compensation
depending on which class of shares they sell. Payments pursuant to a
Distribution Plan are included in the operating expenses of the class.
HOW TO BUY SHARES
(BE SURE TO SPECIFY WHICH CLASS YOU ARE BUYING)
Method New Accounts Additional Investments
By Mail $1,000 minimum $250 minimum
Please make your Please make your
check payable to check payable to the
the Calvert Social Calvert Social Investment
Investment Fund Fund Portfolio of your
Portfolio of your choice and mail it with
choice your your investment slip to:
and mail it with
application to:
Calvert Group Calvert Group
P.O. Box 419544 P.O. Box 419739
Kansas City, MO Kansas City, MO
64179-6542 64105-6739
By Registered, Certified, or Overnight Mail: Calvert Group
c/o NFDS, 6th Floor
1004 Baltimore
Kansas City, MO 64105-1807
Through Your Broker $1,000 minimum $250 minimum
At the Calvert Visit the Calvert Branch Office to make investments by
Branch Office check. See back cover page for the
address.
FOR ALL OPTIONS BELOW, PLEASE CALL YOUR BROKER, OR CALVERT GROUP AT
800-368-2745
By Exchange $1,000 minimum
$250 minimum
(From your account in another Calvert Group Fund)
When opening an account by exchange, your new account must be
established with the same name(s), address and taxpayer identification
number as your existing Calvert account.
By Bank Wire $1,000 minimum
$250 minimum
By Calvert Money Not Available for $50 minimum
Controller* Initial Investment
*Please allow sufficient time for Calvert Group to process your initial
request for this service, normally 10 business days. The maximum
transaction amount is $300,000, and your purchase request must be
received by 4:00 p.m. Eastern time.
NET ASSET VALUE
The Money Market Portfolio shares are sold without a sales charge.
Money Market Portfolio: The price of one share is its "net asset
value," or NAV. NAV is computed by adding the value of the Fund's
investments plus cash and other assets, deducting liabilities and then
dividing the result by the number of shares outstanding. The
securities are valued according to the "amortized cost" method, which
is intended to stabilize the NAV at $1.00 per share.
Managed Growth, Bond, and Equity Portfolios: Net asset value, or "NAV"
refers to the worth of one share. NAV is computed by adding the value
of all portfolio holdings, plus other assets, deducting liabilities
and then dividing the result by the number of shares outstanding. The
NAVs of each class will vary daily based on the market values of the
Portfolio's investments.
Portfolio securities and other assets are valued based on market
quotations, except that securities maturing within 60 days are valued
at amortized cost. If quotations are not available, securities are
valued by a method that the Board of Trustees believes accurately
reflects fair value.
The NAV is calculated at the close of the Fund's business day, which
coincides with the closing of the regular session of the New York
Stock Exchange (normally 4:00 p.m. Eastern time). The Fund is open for
business each day the New York Stock Exchange is open. All purchases
of Fund shares will be confirmed and credited to your account in full
and fractional shares (rounded to the nearest 1/1000 of a share). The
Money Market Portfolio may send monthly statements in lieu of
immediate confirmations of purchases and redemptions.
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.
Money Market Portfolio
All of your purchases must be made in U.S. dollars and checks must be drawn
on U.S. banks. No cash will be accepted. The Fund reserves the right to suspend
the offering of shares for a period of time or to reject any specific purchase
order. If your check does not clear, your purchase will be canceled and you will
be charged a $10 fee plus costs incurred by the Fund. When you purchase by check
or with Calvert Money Controller, those funds will be on hold for up to 10
business days from the date of receipt. During that period, the proceeds will be
held until the transfer agent is reasonably satisfied that the purchase payment
has been collected. Drafts written on the Money Market Portfolio against such
funds will be for uncollected funds. To avoid this collection period, you can
wire federal funds from your bank, which may charge you a fee.
Your purchase will be processed at the net asset value calculated after
your order is received and accepted. Except in the case of telephone orders,
investors whose payments are received in or converted into federal funds by
12:30 p.m. Eastern time by the custiodian will receive the dividend declared
that day. If your wire purchase is received after 12:30 p.m. Eastern time, your
account will begin earning dividends on the next business day. A telephone order
placed to Calvert Institutional Marketing Services by 12:30 p.m. Eastern time
will become effective at the price determined at 5 p.m. Eastern time and the
shares purchased will receive the dividend on Fund shares declared that day if
federal funds are received by the custodian by 5 p.m. Eastern time. Exchanges
begin earning dividends the next business day after the exchange request is
received by mail or telephone. If the purchase is by check and is received by
4:00 p.m. Eastern time, it will begin earning dividends the next business day.
Managed Growth, Bond, and Equity Portfolios
Your purchase will be processed at the next offering price based on the
next net asset value calculated for each class after your order is received and
accepted. If your purchase is made by wire or exchange and is received by 4:00
p.m. (Eastern time), your account will be credited on the day of receipt. If
your purchase is received after 4:00 p.m. Eastern time, it will be credited the
next business day.
Certain financial institutions or broker-dealers which have entered into a
sales agreement with the Distributor may enter confirmed purchase orders on
behalf of customers by phone, with payment to follow within a certain number of
days of the order as specified by the program. If payment is not received in the
time specified, the financial institution could be held liable for resulting
fees or losses.
EXCHANGES
You may exchange shares of the Fund for shares of the same class of other
Calvert Group Funds.
If your investment goals change, the Calvert Group Family of Funds has a
variety of investment alternatives that includes common stock funds, tax-exempt
and corporate bond funds, and money market funds. The exchange privilege is a
convenient way to buy shares in other Calvert Group Funds in order to respond to
changes in your goals or in market conditions. Before you make an exchange from
a Fund or Portfolio, please note the following:
Each exchange represents the sale of shares of one Portfolio and the
purchase of shares of another. Therefore, you could realize a taxable
gain or loss on the transaction.
o Call your broker or a Calvert representative for information and a
prospectus for any of Calvert's other Funds registered in your state. Read the
prospectus of the Fund or Portfolio into which you want to exchange for relevant
information, including class offerings.
o 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.
o Shares on which you have already paid a sales charge at Calvert Group and
shares acquired by reinvestment of dividends or distributions may be exchanged
into another Fund at no additional charge.
o Shareholders (and those managing multiple accounts) who make two
purchases and two exchange redemptions of shares of the same Portfolio during
any 6-month period will be given written notice that they may be prohibited from
making additional investments. This policy does not prohibit a shareholder from
redeeming shares of the Fund, and does not apply to trades solely among money
market funds.
o For purposes of the exchange privilege, effective July 31, 1996, the Fund
is related to Summit Cash Reserves Fund by investment and investor services. The
Fund reserves the right to terminate or modify the exchange privilege in the
future upon 60 days' written notice.
OTHER CALVERT GROUP SERVICES
Calvert Information Network
24 hour yield and prices
Calvert Group has a round-the-clock telephone service that lets existing
customers use a push button phone to obtain prices, yields, account balances,
and authorize certain transactions.
Calvert Money Controller
Calvert Money Controller eliminates the delay of mailing a check or the
expense of wiring funds. You can request this free service on your application.
This service allows you to authorize electronic transfers of money to
purchase or sell shares. You use Calvert Money Controller like an "electronic
check" to move money ($50 to $300,000) between your bank account and your
Calvert Group account with one phone call. Allow one or two business days after
the call for the transfer to take place; for money recently invested, allow
normal check clearing time (up to 10 business days) before redemption proceeds
are sent to your bank.
You may also arrange systematic monthly or quarterly investments (minimum
$50) into your Calvert Group account. After you give us proper authorization,
your bank account will be debited to purchase Fund shares. A debit entry will
appear on your bank statement. If you would like to make arrangements for
systematic monthly or quarterly redemptions from your Calvert Group account,
call your broker or Calvert for a Money Controller Application.
Telephone Transactions
Calvert may record all telephone calls.
If you have telephone transaction privileges, you may purchase, redeem, or
exchange shares, wire funds and use Calvert Money Controller by telephone. You
automatically have telephone privileges unless you elect otherwise. The Fund,
the transfer agent and their affiliates are not liable for acting in good faith
on telephone instructions relating to your account, so long as they follow
reasonable procedures to determine that the telephone instructions are genuine.
Such procedures may include recording the telephone calls and requiring some
form of personal identification. You should verify the accuracy of telephone
transactions immediately upon receipt of your confirmation statement.
Complete the account application for the easiest way to establish services.
The easiest way to establish optional services on your Calvert Group
account is to select the options you desire when you complete your account
application. If you wish to add other options later, you may have to provide us
with additional information and a signature guarantee. Please call your broker
or Calvert Investor Relations at 800-368-2745 for further assistance. For our
mutual protection, we may require a signature guarantee on certain written
transaction requests. A signature guarantee verifies the authenticity of your
signature, and may be obtained from any bank, savings and loan association,
credit union, trust company, broker-dealer firm or member of a domestic stock
exchange. A signature guarantee cannot be provided by a notary public.
Householding of General Mailings
Householding reduces Fund expenses and saves paper and trees
for the environment.
If you have multiple accounts with Calvert, you may receive combined
mailings of some shareholder information, such as semi-annual and annual
reports. Please contact Calvert Investor Relations at 800-368-2745 to receive
additional copies of information.
Special Services and Charges
The Fund pays for shareholder services but not for special services that
are required by a few shareholders, such as a request for a historical
transcript of an account. You may be required to pay a research fee for these
special services.
If you are purchasing shares of the Fund through a program of services
offered by a broker-dealer or financial institution, you should read the program
materials in conjunction with this Prospectus. Certain features may be modified
in these programs, and administrative charges may be imposed by the
broker-dealer or financial institution for the services rendered.
Tax-Saving Retirement Plans
Contact Calvert Group for complete information kits discussing the plans,
and their benefits, provisions and fees.
Calvert Group can set up your new account under one of several tax-deferred
plans. These plans let you invest for retirement and shelter your investment
income from current taxes. Minimums may differ from those listed in the "How to
Buy Shares" chart. Also, reduced sales charges may apply. See "Exhibit A -
Reduced Sales Charges."
o Individual retirement accounts (IRAs): available to anyone who has earned
income. You may also be able to make investments in the name of your spouse, if
your spouse has no earned income.
o Qualified Profit-Sharing and Money-Purchase Plans (including 401(k)
Plans): available to self-employed people and their partners, or to corporations
and their employees.
o Simplified Employee Pension Plan (SEP-IRA): available to self-employed
people and their partners, or to corporations. Salary reduction pension plans
(SAR-SEP IRAs) are also available to employers with 25 or fewer
employees.
o 403(b)(7) Custodial Accounts: available to employees of most non-profit
organizations and public schools and universities.
SELLING YOUR SHARES
You may redeem all or a portion of your shares on any business day. Your
shares will be redeemed at the next net asset value calculated after your
redemption request is received and accepted. See below for specific requirements
necessary to make sure your redemption request is acceptable. Remember that the
Fund may hold payment on the redemption of your shares until it is reasonably
satisfied that investments made by check or by Calvert Money Controller have
been collected (normally up to 10 business days).
Redemption Requirements To Remember
To ensure acceptance of your redemption request, please follow the procedures
described here and below.
Once your shares are redeemed, the proceeds will normally be sent to you on
the next business day, but if making immediate payment could adversely affect
the Fund, it may take up to seven (7) days. Calvert Money Controller redemptions
generally will be credited to your bank account on the second business day after
your phone call. When the New York Stock Exchange is closed (or when trading is
restricted) for any reason other than its customary weekend or holiday closings,
or under any emergency circumstances as determined by the Securities and
Exchange Commission, redemptions may be suspended or payment dates postponed.
Money Market Portfolio
If you sell shares by telephone or written request, you will receive
dividends through the date the request is received and processed. If you write a
draft to sell shares, the shares will earn dividends until the draft is
presented to the Portfolio to be paid.
Minimum account balance is $1,000 per Portfolio.
Please maintain a balance in your account of at least $1,000 per Portfolio,
per class. If, due to redemptions, the account falls below $1,000, or you fail
to invest at least $1,000, your account may be closed and the proceeds mailed to
you at the address of record. You will be given notice that your account will be
closed after 30 days unless you make an additional investment to increase your
account balance to the $1,000 minimum.
HOW TO SELL YOUR SHARES
Draftwriting (Money Market Portfolio only)
You may redeem shares in your Money Market Portfolio account by writing a
draft for at least $250. If you complete and return the signature card for
Draftwriting, the Portfolio will mail bank drafts to you, printed with your name
and address. Generally, there is no charge to you for the maintenance of this
service or the clearance of drafts, but the Fund reserves the right to charge a
service fee for drafts returned for uncollected or insufficient funds. The Fund
will charge $25 for any stop payments on drafts. As a service to shareholders,
the Portfolio may automatically transfer the dollar amount necessary to cover
drafts you have written on the Portfolio to your Portfolio account from any
other of your identically registered accounts in Calvert money market funds or
Calvert Insured Plus. The Fund may charge a fee for this service.
By Mail To: Calvert Group
P.O. Box 419544
Kansas City, MO
64179-6544
You may redeem available shares from your account at any time by sending a
letter of instruction, including your name, account and Portfolio number, the
number of shares or dollar amount, and where you want the money to be sent.
Additional requirements, below, may apply to your account. The letter of
instruction must be signed by all required authorized signers. If you want the
money to be wired to a bank not previously authorized, then a voided bank check
must be enclosed with your letter. If you do not have a voided check or if you
would like funds sent to a different address or another person, your letter must
be signature guaranteed.
Type of Requirements
Registration
Corporations, Letter of instruction and a corporate resolution, signed by
Associations person(s) authorized to act on the account, accompanied by
signature guarantee(s).
Trusts Letter of instruction signed by the Trustee(s) (as
Trustee), with a signature guarantee. (If the Trustee's
name is not registered on your account, provide a copy of
the trust document, certified within the last 60 days.)
By Telephone
Please call 800-368-2745. You may redeem shares from your account by
telephone and have your money mailed to your address of record or wired to an
address or bank you have previously authorized. A charge of $5 is imposed on
wire transfers of less than $1,000. See "Telephone Transactions."
Calvert Money Controller
Please allow sufficient time for Calvert Group to process your initial
request for this service (normally 10 business days). You may also authorize
automatic fixed amount redemptions by Calvert Money Controller. All requests
must be received by 4:00 p.m. (Eastern time). Accounts cannot be closed by this
service.
Exchange to Another Calvert Group Fund
You must meet the minimum investment requirement of the other Calvert Group
Fund or Portfolio. You can only exchange between accounts with identical names,
addresses and taxpayer identification number, unless previously authorized with
a signature-guaranteed letter.
Systematic Check Redemptions
If you maintain an account with $10,000 or more, you may have up to two (2)
redemption checks for $100 or more sent to you on the 15th of each month, simply
by sending a letter with all the information, including your account number, and
the dollar amount ($100 minimum). If you would like a regular check mailed to
another person or place, your letter must be signature guaranteed.
Through your Broker
If your account is held in your broker's name ("street name"), you should
contact your broker directly to transfer, exchange or redeem shares.
DIVIDENDS AND TAXES
Each year, the Fund distributes substantially all of its net investment
income to shareholders.
Dividends from the Money Market Portfolio's net investment income are
accrued daily and paid monthly. The Managed Growth Portfolio pays dividends
quarterly, the Bond Portfolio pays dividends monthly, and the Equity Portfolio
pays dividends annually. Net investment income consists of interest income, net
short-term capital gains, if any, and dividends declared and paid on
investments, less expenses. Distributions of the Fund's net short-term capital
gains (treated as dividends for tax purposes) and its net long-term capital
gains, if any, are normally paid once a year; however, the Fund does not
anticipate making any such distributions unless available capital loss
carryovers have been used or have expired. Dividend and distribution payments
will vary between classes; dividend payments are anticipated to be generally
higher for Class A shares.
Dividend payment options (available monthly or quarterly)
Dividends and any distributions are automatically reinvested in the same
Portfolio at net asset value (no sales charge), unless you elect to have the
dividends of $10 or more paid in cash (by check or by Calvert Money Controller).
Dividends and distributions from any Calvert Group Fund or Portfolio may be
automatically invested in an identically registered account with the same
account number in any other Calvert Group Fund at net asset value. If reinvested
in the same Fund account, new shares will be purchased at net asset value on the
reinvestment date, which is generally 1 to 3 days prior to the payment date. You
must notify the Fund in writing to change your payment options. 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.
"Buying a Dividend"
At the time of purchase, the share price of each class of the Managed
Growth, Bond, and Equity Portfolios may reflect undistributed income, capital
gains or unrealized appreciation of securities. Any income or capital gains from
these amounts which are later distributed to you are fully taxable. On the
record date for a distribution, the Fund's share value is reduced by the amount
of the distribution. If you buy shares just before the record date ("buying a
dividend") you will pay the full price for the shares and then receive a portion
of the price back as a taxable distribution.
Federal Taxes
In January, the Fund will mail you Form 1099-DIV indicating the federal tax
status of dividends and any capital gain distributions paid to you by the Fund
during the past year. Generally, dividends and distributions are taxable in the
year they are paid. However, any dividends and distributions paid in January but
declared during the prior three months are taxable in the year declared.
Dividends and distributions are taxable to you regardless of whether they are
taken in cash or reinvested. Dividends, including short-term capital gains, are
taxable as ordinary income. Distributions from long-term capital gains are
taxable as long-term capital gains, regardless of how long you have owned Fund
shares.
Managed Growth, Bond, and Equity Portfolios
You may realize a capital gain or loss when you sell or exchange shares.
This capital gain or loss will be short- or long-term, depending on how long you
have owned the shares which were sold. In January, the Portfolios will mail you
Form 1099-B indicating the total amount of all sales, including exchanges. You
should keep your annual year-end account statements to determine the cost
(basis) of the shares to report on your tax returns.
Other Tax Information
In addition to federal taxes, you may be subject to state or local taxes on
your investment, depending on the laws in your area. You will be notified to the
extent, if any, that dividends reflect interest received from U.S. government
securities. Such dividends may be exempt from certain state income taxes.
Taxpayer Identification Number
If we do not have your correct Social Security or Taxpayer Identification
Number ("TIN") and a signed certified application or Form W-9, Federal law
requires the Fund to withhold 31% of your dividends, and, for the Managed
Growth, Bond, and Equity Portfolios, 31% of certain redemptions. 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 (closed) 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.
EXHIBIT A
==========================================================================
REDUCED SALES CHARGES (CLASS A ONLY)
You may qualify for a reduced sales charge through several purchase plans
available. You must notify the Fund at the time of purchase to take advantage
of the reduced sales charge.
Right of Accumulation. The sales charge is calculated by taking into
account not only the dollar amount of a new purchase of shares, but also the
higher of cost or current value of shares previously purchased in Calvert Group
Funds that impose sales charges. This automatically applies to your account for
each new purchase.
Letter of Intent. If you plan to purchase $50,000 or more of Fund shares
over the next 13 months, your sales charge may be reduced through a "Letter of
Intent." You pay the lower sales charge applicable to the total amount you plan
to invest over the 13-month period, excluding any money market fund purchases.
Part of your shares will be held in escrow, so that if you do not invest the
amount indicated, you will have to pay the sales charge applicable to the
smaller investment actually made. For more information, see the Statement of
Additional Information.
Group Purchases. If you are a member of a qualified group, you may purchase
shares of the Fund at the reduced sales charge applicable to the group taken as
a whole. The sales charge is calculated by taking into account not only the
dollar amount of the shares you purchase, but also the higher of cost or current
value of shares previously purchased and currently held by other members of your
group.
A "qualified group" is one which (i) has been in existence for more than
six months, (ii) has a purpose other than acquiring Fund shares at a discount,
and (iii) satisfies uniform criteria which enable CDI and dealers offering Fund
shares to realize economies of scale in distributing such shares. A qualified
group must have more than 10 members, must be available to arrange for group
meetings between representatives of CDI or dealers distributing the Fund's
shares, must agree to include sales and other materials related to the Fund in
its publications and mailings to members at reduced or no cost to CDI or
dealers, and must seek to arrange for payroll deduction or other bulk
transmission of investments to the Fund.
Pension plans may not qualify participants for group purchases; however,
such plans may qualify for reduced sales charges under a separate provision (see
below). Members of a group are not eligible for a Letter of Intent.
Retirement Plans Under Section 457, Section 403(b)(7), or Section 401(k).
There is no sales charge on shares purchased for the benefit of a retirement
plan under Section 457 of the Internal Revenue Code of 1986, as amended
("Code"), or for a plan qualifying under Section 403(b)(7) of the Code if, at
the time of purchase, Calvert Group has been notified in writing that the
403(b)(7) plan has at least 200 eligible employees. Furthermore, there is no
sales charge on shares purchased for the benefit of a retirement plan qualifying
under Section 401(k) of the Code if, at the time of such purchase, the 401(k)
plan administrator has notified Calvert Group in writing that a) its 401(k) plan
has at least 200 eligible employees; or b) the cost or current value of shares
the plan has in Calvert Group of Funds (except money market funds) is at least
$1 million.
Neither the Fund, nor CDI, nor any affiliate thereof will reimburse a plan
or participant for any sales charges paid prior to receipt of such written
communication and confirmation by Calvert Group. Plan administrators should send
requests for the waiver of sales charges based on the above conditions to:
Calvert Group Retirement Plans, 4550 Montgomery Avenue, Suite 1000N, Bethesda,
Maryland 20814.
Other Circumstances. There is no sales charge on shares of any fund
(portfolio or series) of the Calvert Group of Funds sold to:
(1) current and retired members of the Board of Trustees/Directors of the
Calvert Group of Funds, (and the Advisory Council of the Calvert Social
Investment Fund);
(2) directors, officers and employees of the Advisor, Distributor, and
their affiliated companies;
(3) directors, officers and registered representatives of brokers
distributing the Fund's shares; and immediate family members of persons listed
in (1), (2), or (3) above;
(4) dealers, brokers, or registered investment advisors that have entered
into an agreement with CDI providing specifically for the use of shares of the
Fund (Portfolio or Series) in particular investment programs or products (where
such program or product already has a fee charged therein) made available to the
clients of such dealer, broker, or registered investment advisor;
(5) trust departments of banks or savings institutions for trust clients of
such bank or savings institution; and
(6) purchases placed through a broker maintaining an omnibus account with
the Fund (Portfolio or Series) and the purchases are made by (a) investment
advisors or financial planners placing trades for their own accounts (or the
accounts of their clients) and who charge a management, consulting, or other fee
for their services; or (b) clients of such investment advisors or financial
planners who place trades for their own accounts if such accounts are linked to
the master account of such investment advisor or financial planner on the books
and records of the broker or agent; or (c) retirement and deferred compensation
plans and trusts, including, but not limited to, those defined in Section 401(a)
or Section 403(b) of the I.R.C., and "rabbi trusts."
Established Accounts. Shares of the Managed Growth Portfolio may be sold at
net asset value to accounts opened on or before July 17, 1986.
Dividends and Capital Gain Distributions from other Calvert Group Funds.
You may prearrange to have your dividends and capital gain distributions from
another Calvert Group Fund automatically invested in another account with no
additional sales charge.
Purchases made at net asset value ("NAV"). 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.
Reinstatement Privilege. If you redeem Fund shares and then within 30 days
decide to reinvest in the same Fund, you may do so at the net asset value next
computed after the reinvestment order is received, without a sales charge. You
may use the reinstatement privilege only once. The Fund reserves the right to
modify or eliminate this privilege.
To Open an Account: Prospectus
800-368-2748 January 31, 1996
Performance and Prices:
Calvert Information Network CALVERT SOCIAL INVESTMENT FUND
24 hours, 7 days a week Money Market Portfolio
800-368-2745 Managed Growth Portfolio
Bond Portfolio
Equity Portfolio
Service for Existing Account:
Shareholders 800-368-2745
Brokers 800-368-2746
TDD for Hearing Impaired:
800-541-1524
Branch Office:
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
Registered, Certified or
Overnight Mail:
Calvert Group
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
Calvert Group
c/o NFDS, 6th Floor
1004 Baltimore
Kansas City, MO 64105
PRINCIPAL UNDERWRITER
Calvert Distributors, Inc.
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
Inside Front Cover:
TABLE OF CONTENTS
Highlights
Fund Expenses
Financial Highlights
Investment Objectives and Policies
Investment Selection Process
Additional Investment Policies
Yield and Total Return
Management of the Fund
SHAREHOLDER GUIDE:
Alternative Sales Options
How to Buy Shares
Net Asset Value
When Your Account Will Be Credited
Exchanges
Other Calvert Group Services
Selling Your Shares
How to Sell Your Shares
Dividends and Taxes
Exhibit A - Reduced Sales Charges
<PAGE>
Calvert Social Investment Fund
Statement of Additional Information
January 31, 1996
INVESTMENT ADVISOR TRANSFER AGENT
Calvert Asset Management Company, Inc. alvert Shareholder Services, Inc.
4550 Montgomery Avenue 4550 Montgomery Avenue
Suite 1000N Suite 1000N
Bethesda, Maryland 20814 Bethesda, Maryland 20814
INDEPENDENT ACCOUNTANTS PRINCIPAL UNDERWRITER
Coopers & Lybrand, L.L.P. Calvert Distributors, Inc.
217 Redwood Street 4550 Montgomery Avenue
Baltimore, Maryland 21202-3316 Suite 1000N
Bethesda, Maryland 20814
TABLE OF CONTENTS
Investment Objectives and Policies 1
Investment Restrictions 8
Investment Selection Process 10
Dividends and Taxes 11
Net Asset Value 12
Calculation of Yield and Total
Return 13
Purchase and Redemption of Shares 15
Reduced Sales Charges (Class A) 16
Advertising 17
Trustees, Officers and Advisory
Council 17
Investment Advisor 20
Method of Distribution 21
Transfer and Shareholder
Servicing Agent 22
Portfolio Transactions 23
Independent Accountants and
Custodians 23
General Information 23
Financial Statements 24
Appendix 24
<PAGE>
STATEMENT OF ADDITIONAL INFORMATION-January 31, 1996
CALVERT SOCIAL INVESTMENT FUND
4550 Montgomery Avenue, Bethesda, Maryland 20814
- --------------------------------------------------------------------------
New Account (800) 368-2748 Shareholder (800) 368-2745
- --------------------------------------------------------------------------
Information:(301) 951-4820 Services: (301) 951-4810
Broker (800) 368-2746 TDD for the Hearing-
==========================================================================
Services: (301) 951-4850 Impaired:(800) 541-1524
==========================================================================
This Statement of Additional Information is not a prospectus.
Investors should read the Statement of Additional Information in
conjunction with the Fund's Prospectus, dated January 31, 1996, which
may be obtained free of charge by writing the Fund at the above address
or calling the Fund.
==========================================================================
INVESTMENT OBJECTIVES AND POLICIES
==========================================================================
Calvert Social Investment Fund (the "Fund") is designed to
provide opportunities for individual and institutional investors,
including ERISA fiduciaries, seeking growth of capital or current income
through investment in enterprises that make a significant contribution
to society through their products and services and through the way they
do business. The Fund offers investors a choice of four separate
portfolios selected with a concern for the social impact of each
investment: the Money Market Portfolio, the Managed Growth Portfolio,
the Equity Portfolio and the Bond Portfolio.
The Money Market Portfolio seeks to provide the highest level
of current income, consistent with liquidity, safety and stability,
through investment in money market instruments, including securities
issued or guaranteed by agencies of the U.S. Government and repurchase
agreements with banks and brokers secured by such instruments, selected
in accordance with the Fund's investment and social criteria. The Money
Market Portfolio is designed for short-term cash management and for
investors needing stability of principal. The Money Market Portfolio
seeks to maintain a constant net asset value of $1.00 per share. Shares
of the Money Market Portfolio are sold at their net asset value per
share which is not subject to a sales charge.
The Managed Growth Portfolio seeks to achieve a total return
above the rate of inflation through an actively managed, diversified
portfolio of common and preferred stocks, bonds and money market
instruments which offer income and capital growth opportunity without
extreme risk-taking and which best satisfy the investment and social
concern criteria established by the Fund. It is the Managed Growth
Portfolio's investment philosophy that long-term favorable investment
performance is provided by companies which combine sound business
policies and circumstances with social and ethical values.
The Equity Portfolio seeks growth of capital through investment
in the equity securities of issuers within industries perceived to offer
opportunities for potential capital appreciation and which satisfy the
Fund's investment and social criteria. It is the philosophy of the
Equity Portfolio that favorable investment performance is provided by
companies which combine sound business policies and circumstances with
social and ethical values.
The Bond Portfolio seeks to provide as high a level of current
income as is believed to be consistent with prudent investment risk,
through investment in bonds and other straight debt securities, selected
pursuant to the Fund's investment and social criteria. An additional
objective is to seek preservation of shareholders' capital. It is the
philosophy of the Bond Portfolio that favorable investment performance
is provided by companies which combine sound business policies and
circumstances with social and ethical values.
There can be, of course, no assurance that the Fund will be
successful in meeting its investment objective or that the Money Market
Portfolio will maintain a constant net asset value of $1.00 per share.
Foreign Securities
Each Portfolio may invest up to 25% of its assets in the
securities of foreign issuers. The Money Market Portfolio may purchase
only high quality, U.S. dollar-denominated instruments. Investments in
foreign securities may present risks not typically involved in domestic
investments.
Additional costs may be incurred in connection with
international investment, since foreign brokerage commissions and the
custodial costs associated with maintaining foreign portfolio securities
are generally higher than in the United States. Fee expense may also be
incurred on currency exchanges when the Fund changes investments from
one country to another or converts foreign securities holdings into U.S.
dollars.
United States Government policies have at times, in the past,
through imposition of interest equalization taxes and other
restrictions, discouraged certain investments abroad by United States
investors. While such taxes or restrictions are not presently in effect,
they may be reinstituted from time to time as a means of fostering a
favorable United States balance of payments. In addition, foreign
countries may impose withholding and taxes on dividends and interest.
Since investments in securities of issuers domiciled in foreign
countries usually involve currencies of the foreign countries, and since
the Fund may temporarily hold funds in foreign currencies during the
completion of investment programs, the value of the assets of the Fund
as measured in United States dollars may be affected favorably or
unfavorably by changes in foreign currency exchange rates and exchange
control regulations. For example, if the value of the foreign currency
in which a security is denominated increases or declines in relation to
the value of the U.S. dollar, the value of the security in U.S. dollars
will increase or decline correspondingly. The Fund will conduct its
foreign currency exchange transactions either on a spot (i.e., cash)
basis at the spot rate prevailing in the foreign exchange market, or
through entering into forward contracts to purchase or sell foreign
currencies. A forward foreign currency contract involves an obligation
to purchase or sell a specific currency at a future date which may be
any fixed number of days from the date of the contract agreed upon by
the parties, at a price set at the time of the contract. These contracts
are traded in the interbank market conducted directly between currency
traders (usually large, commercial banks) and their customers. A forward
foreign currency contract generally has no deposit requirement, and no
commissions are charged at any stage for trades.
The Fund may enter into forward foreign currency contracts for
two reasons. First, the Fund may desire to preserve the United States
dollar price of a security when it enters into a contract for the
purchase or sale of a security denominated in a foreign currency. The
Fund may be able to protect itself against possible losses resulting
from changes in the relationship between the United States dollar and
foreign currencies during the period between the date the security is
purchased or sold and the date on which payment is made or received by
entering into a forward contract for the purchase or sale, for a fixed
amount of dollars, of the amount of the foreign currency involved in the
underlying security transactions.
Second, when the Advisor believes that the currency of a
particular foreign country may suffer a substantial decline against the
United States dollar, the Fund enters into a forward foreign currency
contract to sell, for a fixed amount of dollars, the amount of foreign
currency approximating the value of some or all of the Fund's portfolio
securities denominated in such foreign currency. The precise matching of
the forward foreign currency contract amounts and the value of the
portfolio securities involved will not generally be possible since the
future value of the securities will change as a consequence of market
movements between the date the forward contract is entered into and the
date it matures. The projection of short-term currency market movement
is difficult, and the successful execution of this short-term hedging
strategy is uncertain. Although forward foreign currency contracts tend
to minimize the risk of loss due to a decline in the value of the hedged
currency, at the same time they tend to limit any potential gain which
might result should the value of such currency increase. The Fund does
not intend to enter into such forward contracts under this circumstance
on a regular or continuous basis.
Foreign Money Market Instruments
The Money Market Portfolio may invest without limitation in
money market instruments of banks, whether foreign or domestic,
including obligations of U.S. branches of foreign banks ("Yankee"
instruments) and obligations of foreign branches of U.S. banks
("Eurodollar" instruments). All such instruments must be high-quality,
U.S. dollar-denominated obligations. It is an operating (i.e.,
non-fundamental) policy of the Fund that the Money Market Portfolio may
invest only in foreign money market instruments if they are of
comparable quality to the obligations of domestic banks. Although these
instruments are not subject to foreign currency risk since they are U.S.
dollar-denominated, investments in foreign money market instruments may
involve risks that are different than investments in securities of U.S.
issuers. See "Foreign Securities" above.
Private Placements and Illiquid Securities
Due to the particular social objective of the Fund,
opportunities may exist to promote especially promising approaches to
social goals through privately placed investments. The private placement
investments undertaken by the Fund, if any, may be subject to a high
degree of risk. Such investments may involve relatively small and
untried enterprises that have been selected in the first instance
because of some attractive social objectives or policies. The Investment
Advisors seek to structure the Fund's investments to provide the
greatest assurance of attaining the intended investment return. It is an
operating policy of the Fund that no private placements shall be
acquired for a Portfolio until the value of that Portfolio's investments
exceeds $20 million.
Many private placement investments have no readily available
market and may therefore be considered illiquid. Securities eligible for
resale pursuant to Rule 144A under the Securities Act of 1933 may be
determined by the Board of Trustees to be liquid. The Board may delegate
such determinations of liquidity to the Advisor, pursuant to guidelines
and oversight by the Board. Fund investments in private placements and
other securities for which market quotations are not readily available
are valued at fair market value as determined by the Advisor under the
direction and control of the Board.
Repurchase Agreements
The Fund may purchase debt securities subject to repurchase
agreements which are arrangements under which the Fund buys a security
and the seller simultaneously agrees to repurchase the security at a
specified time and price reflecting a market rate of interest. The Fund
engages in repurchase agreements in order to earn a higher rate of
return than it could earn simply by investing in the obligation which is
the subject of the repurchase agreement. Repurchase agreements are not,
however, without risk. In the event of the bankruptcy of a seller during
the term of a repurchase agreement, a legal question exists as to
whether the Fund would be deemed the owner of the underlying security or
would be deemed only to have a security interest in and lien upon such
security. The Fund will only engage in repurchase agreements with
recognized securities dealers and banks determined to present minimal
credit risk by the Advisor under the direction and supervision of the
Fund's Board of Trustees. In addition, the Fund will only engage in
repurchase agreements reasonably designed to secure fully during the
term of the agreement the seller's obligation to repurchase the
underlying security and will monitor the market value of the underlying
security during the term of the agreement. If the value of the
underlying security declines and is not at least equal to the repurchase
price due the Fund pursuant to the agreement, the Fund will require the
seller to pledge additional securities or cash to secure the seller's
obligations pursuant to the agreement. If the seller defaults on its
obligation to repurchase and the value of the underlying security
declines, the Fund may incur a loss and may incur expenses in selling
the underlying security. Repurchase agreements are always for periods of
less than one year. Repurchase agreements not terminable within seven
days are considered illiquid.
Reverse Repurchase Agreements
The Fund may also engage in reverse repurchase agreements.
Under a reverse repurchase agreement, the Fund sells portfolio
securities to a bank or securities dealer and agrees to repurchase those
securities from such party at an agreed upon date and price reflecting a
market rate of interest. The Fund invests the proceeds from each reverse
repurchase agreement in obligations in which it is authorized to invest.
The Fund intends to enter into a reverse repurchase agreement only when
the interest income provided for in the obligation in which the Fund
invests the proceeds is expected to exceed the amount the Fund will pay
in interest to the other party to the agreement plus all costs
associated with the transactions. The Fund does not intend to borrow for
leverage purposes. The Portfolios will only be permitted to pledge
assets to the extent necessary to secure borrowings and reverse
repurchase agreements.
During the time a reverse repurchase agreement is outstanding,
the Fund will maintain in a segregated custodial account an amount of
cash, U.S. Government securities or other liquid, high-quality debt
securities equal in value to the repurchase price. The Fund will mark to
market the value of assets held in the segregated account, and will
place additional assets in the account whenever the total value of the
account falls below the amount required under applicable regulations.
The Fund's use of reverse repurchase agreements involves the
risk that the other party to the agreements could become subject to
bankruptcy or liquidation proceedings during the period the agreements
are outstanding. In such event, the Fund may not be able to repurchase
the securities it has sold to that other party. Under those
circumstances, if at the expiration of the agreement such securities are
of greater value than the proceeds obtained by the Fund under the
agreements, the Fund may have been better off had it not entered into
the agreement. However, the Fund will enter into reverse repurchase
agreements only with banks and dealers which the Advisor believes
present minimal credit risks under guidelines adopted by the Fund's
Board of Trustees. In addition, the Portfolio bears the risk that the
market value of the securities sold by the Portfolio may decline below
the agreed-upon repurchase price, in which case the dealer may request
the Portfolio to post additional collateral.
Non-Investment Grade Debt Securities
The Managed Growth, Bond and Equity Portfolios may invest in
lower quality debt securities (generally those rated BB or lower by S&P
or Ba or lower by Moody's, commonly known as "junk bonds"), subject to
the Fund's investment policy which provides that they may not invest
more than 20% of their respective assets in securities rated below B by
either rating service, or in unrated securities determined by the
Advisor to be comparable to securities rated below B by either rating
service. These securities have moderate to poor protection of principal
and interest payments and have speculative characteristics. (See
Appendix for a description of the ratings.) These securities involve
greater risk of default or price declines due to changes in the issuer's
creditworthiness than investment-grade debt securities. Because the
market for lower-rated securities may be thinner and less active than
for higher-rated securities, there may be market price volatility for
these securities and limited liquidity in the resale market. Market
prices for these securities may decline significantly in periods of
general economic difficulty or rising interest rates. Unrated debt
securities may fall into the lower quality category. Unrated securities
usually are not attractive to as many buyers as rated securities are,
which may make them less marketable.
The quality limitation set forth in the Fund's investment
policy is determined immediately after the Fund's acquisition of a given
security. Accordingly, any later change in ratings will not be
considered when determining whether an investment complies with the
Fund's investment policy.
When purchasing high-yielding securities, rated or unrated, the
Advisors prepare their own careful credit analysis to attempt to
identify those issuers whose financial condition is adequate to meet
future obligations or is expected to be adequate in the future. Through
portfolio diversification and credit analysis, investment risk can be
reduced, although there can be no assurance that losses will not occur.
Options and Futures Contracts
The Managed Growth, Bond and Equity Portfolios may, in pursuit
of their respective investment objectives, purchase put and call options
and engage in the writing of covered call options and secured put
options on securities which meet the Fund's social criteria, and employ
a variety of other investment techniques. Specifically, these Portfolios
may also engage in the purchase and sale of stock index future
contracts, foreign currency futures contracts, interest rate futures
contracts, and options on such futures, as described more fully below.
These Portfolios may engage in such transactions only to hedge
the existing positions in the respective Portfolios. They will not
engage in such transactions for the purposes of speculation or leverage.
Such investment policies and techniques may involve a greater degree of
risk than those inherent in more conservative investment approaches.
Each of these Portfolios may purchase a put or call option on
securities (including a straddle or spread) only if the value of that
option premium, when aggregated with the premiums on all other options
on securities held by the Portfolio, does not exceed 5% of the
Portfolio's total assets. Further, as an operating policy, which may be
changed without shareholder approval, none of the Portfolios intends to
enter into futures contracts or options on futures contracts if the
aggregate initial margin and premiums required to establish these
positions would exceed 5% of the Portfolio's net assets. These
Portfolios may write "covered options" on securities in standard
contracts traded on national securities exchanges. These Portfolios may
write such options in order to receive the premiums from options that
expire and to seek net gains from closing purchase transactions with
respect to such options.
Put and Call Options. These Portfolios may purchase put and call
options, in standard contracts traded on national securities exchanges,
on securities of issuers which meet the Fund's social criteria. These
Portfolios will purchase such options only to hedge against changes in
the value of securities the Portfolios hold and not for the purposes of
speculation or leverage. By buying a put, a Portfolio has the right to
sell the security at the exercise price, thus limiting its risk of loss
through a decline in the market value of the security until the put
expires. The amount of any appreciation in the value of the underlying
security will be partially offset by the amount of the premium paid for
the put option and any related transaction costs. Prior to its
expiration, a put option may be sold in a closing sale transaction and
any profit or loss from the sale will depend on whether the amount
received is more or less than the premium paid for the put option plus
the related transaction costs.
These Portfolios may purchase call options on securities which
they may intend to purchase and which meet the Fund's social criteria.
Such transactions may be entered into in order to limit the risk of a
substantial increase in the market price of the security which the
Portfolio intends to purchase. Prior to its expiration, a call option
may be sold in a closing sale transaction. Any profit or loss from such
a sale will depend on whether the amount received is more or less than
the premium paid for the call option plus the related transaction costs.
Covered Options. These Portfolios may write only covered options on
equity and debt securities in standard contracts traded on national
securities exchanges. This means that, in the case of call options, so
long as a Portfolio is obligated as the writer of a call option, that
Portfolio will own the underlying security subject to the option and, in
the case of put options, that Portfolio will, through its custodian,
deposit and maintain either cash or securities with a market value equal
to or greater than the exercise price of the option.
When a Portfolio writes a covered call option, the Portfolio
gives the purchaser the right to purchase the security at the call
option price at any time during the life of the option. As the writer of
the option, the Portfolio receives a premium, less a commission, and in
exchange foregoes the opportunity to profit from any increase in the
market value of the security exceeding the call option price. The
premium serves to mitigate the effect of any depreciation in the market
value of the security. Writing covered call options can increase the
income of the Portfolio and thus reduce declines in the net asset value
per share of the Portfolio if securities covered by such options decline
in value. Exercise of a call option by the purchaser however will cause
the Portfolio to forego future appreciation of the securities covered by
the option.
When a Portfolio writes a covered put option, it will gain a
profit in the amount of the premium, less a commission, so long as the
price of the underlying security remains above the exercise price.
However, the Portfolio remains obligated to purchase the underlying
security from the buyer of the put option (usually in the event the
price of the security falls below the exercise price) at any time during
the option period. If the price of the underlying security falls below
the exercise price, the Portfolio may realize a loss in the amount of
the difference between the exercise price and the sale price of the
security, less the premium received.
These Portfolios may purchase securities which may be covered
with call options solely on the basis of considerations consistent with
the investment objectives and policies of the Fund and the affected
Portfolio. The Portfolio's turnover may increase through the exercise of
a call option; this will generally occur if the market value of a
"covered" security increases and the portfolio has not entered into a
closing purchase transaction.
To preserve the Fund's status as a regulated investment company
under Subchapter M of the Internal Revenue Code, it is the Fund's policy
to limit any gains on put or call options and other securities held less
than three months to less than 30% of a Portfolio's annual gross income.
Risks Related to Options Transactions. The Portfolios can close
out their respective positions in exchange-traded options only on an
exchange which provides a secondary market in such options. Although
these Portfolios intend to acquire and write only such exchange-traded
options for which an active secondary market appears to exist, there can
be no assurance that such a market will exist for any particular option
contract at any particular time. This might prevent the Portfolios from
closing an options position, which could impair the Portfolios' ability
to hedge effectively. The inability to close out a call position may
have an adverse effect on liquidity because the Portfolio may be
required to hold the securities underlying the option until the option
expires or is exercised.
Futures Transactions. These Portfolios may purchase and sell futures
contracts, but only when, in the judgment of the Advisor, such a
position acts as a hedge against market changes which would adversely
affect the securities held by the Portfolios. These futures contracts
may include, but are not limited to, market index futures contracts and
futures contracts based on U.S. Government obligations.
A futures contract is an agreement between two parties to buy
and sell a security on a future date which has the effect of
establishing the current price for the security. Although futures
contracts by their terms require actual delivery and acceptance of
securities, in most cases the contracts are closed out before the
settlement date without the making or taking of delivery of securities.
Upon buying or selling a futures contract, the Portfolio deposits
initial margin with its custodian, and thereafter daily payments of
maintenance margin are made to and from the executing broker. Payments
of maintenance margin reflect changes in the value of the futures
contract, with the Portfolio being obligated to make such payments if
its futures position becomes less valuable and entitled to receive such
payments if its positions become more valuable.
These Portfolios may only invest in futures contracts to hedge
their respective existing investment positions and not for income
enhancement, speculation or leverage purposes. Although some of the
securities underlying a futures contract may not necessarily meet the
Fund's social criteria, any such hedge position taken by these
Portfolios will not constitute a direct ownership interest in the
underlying securities.
Futures contracts are designed by boards of trade which are
designated "contracts markets" by the Commodity Futures Trading
Commission ("CFTC"). As series of a registered investment company, the
Portfolios are eligible for exclusion from the CFTC's definition of
"commodity pool operator," meaning that the Portfolios may invest in
futures contracts under specified conditions without registering with
the CFTC. Among these conditions are requirements that to the extent
that a Portfolio enters into future contracts and options on futures
positions that are not for bonafide hedging purposes (as defined by the
CFTC), the aggregate initial margin and premiums on these positions
(excluding the amount by which options are "in-the-money") may not
exceed 5% of the Portfolio's net assets. Futures contracts trade on
contracts markets in a manner that is similar to the way a stock trades
on a stock exchange and the boards of trade, through their clearing
corporations, guarantee performance of the contracts.
Options on Futures Contracts. These Portfolios may purchase and write
put or call options and sell call options on futures contracts in which
a Portfolio could otherwise invest and which are traded on a U.S.
exchange or board of trade. The Portfolios may also enter into closing
transactions with respect to such options to terminate an existing
position; that is, to sell a put option already owned and to buy a call
option to close a position where the Portfolio has already sold a
corresponding call option.
The Portfolios may only invest in options on futures contracts
to hedge their respective existing investment positions and not for
income enhancement, speculation or leverage purposes. Although some of
the securities underlying the futures contract underlying the option may
not necessarily meet the Fund's social criteria, any such hedge position
taken by these Portfolios will not constitute a direct ownership
interest in the underlying securities.
An option on a futures contract gives the purchaser the right,
in return for the premium paid, to assume a position in a futures
contract-a long position if the option is a call and a short position if
the option is a put-at a specified exercise price at any time during the
period of the option. The Portfolios will pay a premium for such options
purchased or sold. In connection with such options bought or sold, the
Portfolios will make initial margin deposits and make or receive
maintenance margin payments which reflect changes in the market value of
such options. This arrangement is similar to the margin arrangements
applicable to futures contracts described above.
Put Options on Futures Contracts. The purchase of put options on futures
contracts is analogous to the sale of futures contracts and is used to
protect the portfolio against the risk of declining prices. These
Portfolios may purchase put options and sell put options on futures
contracts that are already owned by that Portfolio. The Portfolios will
only engage in the purchase of put options and the sale of covered put
options on market index futures for hedging purposes.
Call Options on Futures Contracts. The sale of call options on futures
contracts is analogous to the sale of futures contracts and is used to
protect the portfolio against the risk of declining prices. The purchase
of call options on futures contracts is analogous to the purchase of a
futures contract. These Portfolios may only buy call options to close an
existing position where the Portfolio has already sold a corresponding
call option, or for a cash hedge. The Portfolios will only engage in the
sale of call options and the purchase of call options to cover for
hedging purposes.
Writing Call Options on Futures Contracts. The writing of call options
on futures contracts constitutes a partial hedge against declining
prices of the securities deliverable upon exercise of the futures
contract. If the futures contract price at expiration is below the
exercise price, the Portfolio will retain the full amount of the option
premium which provides a partial hedge against any decline that may have
occurred in the Portfolio's securities holdings.
Risks of Options and Futures Contracts. If one of these Portfolios has
sold futures or takes options positions to hedge its portfolio against
decline in the market and the market later advances, the Portfolio may
suffer a loss on the futures contracts or options which it would not
have experienced if it had not hedged. Correlation is also imperfect
between movements in the prices of futures contracts and movements in
prices of the securities which are the subject of the hedge. Thus the
price of the futures contract or option may move more than or less than
the price of the securities being hedged. Where a Portfolio has sold
futures or taken options positions to hedge against decline in the
market, the market may advance and the value of the securities held in
the Portfolio may decline. If this were to occur, the Portfolio might
lose money on the futures contracts or options and also experience a
decline in the value of its portfolio securities. However, although this
might occur for a brief period or to a slight degree, the value of a
diversified portfolio will tend to move in the direction of the market
generally.
The Portfolios can close out futures positions only on an
exchange or board of trade which provides a secondary market in such
futures. Although the Portfolios intend to purchase or sell only such
futures for which an active secondary market appears to exist, there can
be no assurance that such a market will exist for any particular futures
contract at any particular time. This might prevent the Portfolios from
closing a futures position, which could require a Portfolio to make
daily cash payments with respect to its position in the event of adverse
price movements.
Options on futures transactions bear several risks apart from
those inherent in options transactions generally. The Portfolios'
ability to close out their options positions in futures contracts will
depend upon whether an active secondary market for such options develops
and is in existence at the time the Portfolios seek to close their
positions. There can be no assurance that such a market will develop or
exist. Therefore, the Portfolios might be required to exercise the
options to realize any profit.
==========================================================================
INVESTMENT RESTRICTIONS
==========================================================================
Fundamental Investment Restrictions
The Fund has adopted the following investment restrictions
which, together with the foregoing investment objectives and fundamental
policies of a Portfolio, cannot be changed without the approval of the
holders of a majority of the outstanding shares of the affected
Portfolio. As defined in the Investment Company Act of 1940, this means
the lesser of the vote of (a) 67% of the shares of the Portfolio at a
meeting where more than 50% of the outstanding shares are present in
person or by proxy or (b) more than 50% of the outstanding shares of the
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). None of the Portfolios may:
1. Purchase securities of any issuer (other than
obligations of, or guaranteed by, the United States
Government, its agencies or instrumentalities) if, as a
result, more than 5% of the value of that Portfolio's
total assets would be invested in securities of that
issuer.
2. Concentrate more than 25% of the value of its
assets in any one industry; provided, however, that
there is no limitation with respect to investments in
obligations issued or guaranteed by the United States
Government or its agencies and instrumentalities, and
repurchase agreements secured thereby, and in the case
of the Money Market Portfolio, there is no limitation
with respect to investments in money market instruments
of banks.
3. Purchase more than 10% of the outstanding
voting securities of any issuer. In addition, the Fund
may not in the aggregate purchase more than 10% of the
outstanding voting securities of any issuer.
4. Purchase the securities of any issuer with
less than three years' continuous operation if, as a
result, more than 5% of the value of that Portfolio's
total assets would be invested in securities of such
issuers.
5. Make loans other than through the purchase of
money market instruments and repurchase agreements or
by the purchase of bonds, debentures or other debt
securities. The purchase by a Portfolio of all or a
portion of an issue of publicly or privately
distributed debt obligations in accordance with its
investment objective, policies and restrictions, shall
not constitute the making of a loan.
6. Underwrite the securities of other issuers.
7. Purchase from or sell to any of the Fund's
officers or Trustees, or firms of which any of them are
members, any securities (other than capital stock of
the Fund), but such persons or firms may act as brokers
for the Fund for customary commissions.
8. Borrow money, except from banks for temporary
or emergency purposes and then only in an amount up to
10% of the value of that Portfolio's total assets and
except by engaging in reverse repurchase agreements;
provided, however, that a Portfolio may only engage in
reverse repurchase agreements so long as, at the time a
Portfolio enters into a reverse repurchase agreement,
the aggregate proceeds from outstanding reverse
repurchase agreements, when added to other outstanding
borrowings permitted by this section, do not exceed 33
1/3% of the Portfolio's total assets. In order to
secure any permitted borrowings and reverse repurchase
agreements under this section, each Portfolio may
pledge, mortgage or hypothecate its assets.
9. Make short sales of securities or purchase any
securities on margin except as provided for the Managed
Growth, Equity and Bond Portfolios with respect to
options, futures contracts and options on futures
contracts.
10. Write, purchase or sell puts, calls or
combinations thereof except as provided for the Managed
Growth, Equity and Bond Portfolios with respect to
options, futures contracts and options on futures
contracts.
11. Invest for the purpose of exercising control
or management of another issuer.
12. Invest in commodities, commodities futures
contracts, or real estate, although it may invest in
securities which are secured by real estate or real
estate mortgages and securities of issuers which invest
or deal in commodities, commodity futures, real estate
or real estate mortgages and provided that the Managed
Growth, Equity and Bond Portfolios may purchase or sell
stock index futures, foreign currency futures, interest
rate futures and options thereon.
13. Invest in interests in oil, gas, or other
mineral exploration or development programs, although
it may invest in securities of issuers which invest in
or sponsor such programs.
14. Purchase or retain securities issued by
investment companies except to the extent permitted by
the Investment Company Act of 1940, as amended, and in
connection with a trustee's/director's deferred
compensation plan, as long as there is no duplication
of advisory fees.
Non-Fundamental Investment Restrictions
The Fund has adopted the following operating (i.e.,
non-fundamental) investment policies and restrictions which may be
changed by the Board of Trustees without shareholder approval. None of
the Portfolios may:
15. Purchase the obligations of foreign issuers
if, as a result, such securities would exceed 25% of
the value of that Portfolio's assets.
16. Purchase illiquid securities if more than 15%
of the value of that Portfolio's net assets would be
invested in such securities.
17. Purchase or retain securities of any issuer if
the officers, directors or Trustees of the Fund or its
Advisors, owning beneficially more than 1/2 of 1% of
the securities of such issuer, together own
beneficially more than 5% of such issuer's securities.
18. Invest in warrants if more than 5% of the
value of that Portfolio's net assets would be invested
in such securities. No more than 2% of the Portfolio's
net assets will be invested in warrants and stock
rights not listed on the New York Stock Exchange or the
American Stock Exchange.
19. Invest in oil, gas, or other mineral leases.
Any investment restriction which involves a maximum percentage
of securities or assets shall not be considered to be violated unless an
excess over the applicable percentage occurs immediately after an
acquisition of securities or utilization of assets and results therefrom.
==========================================================================
INVESTMENT SELECTION PROCESS
==========================================================================
Investments in the Fund are selected on the basis of their
ability to contribute to the dual objective of the Fund, i.e., those
that satisfy the Fund's investment and social criteria. The Fund has
developed a number of techniques for evaluating the performance of
issuers in each of these areas. The primary sources of information are
reports published by the issuers themselves, the reports of public
agencies, and the reports of groups which monitor performance in
particular areas. These sources of information are sometimes augmented
with direct interviews or written questionnaires addressed to the
issuers. It should be recognized, however, that there are few generally
accepted measures by which achievement in these areas can be readily
distinguished; therefore, the development of suitable measurement
techniques is largely within the discretion and judgment of the Advisors
of the Fund.
In making selections for the Managed Growth, Equity and Bond
Portfolios, the Advisors determine and evaluate the appropriate
portfolio composition on the basis of asset prices and the perceived
consequences and probabilities of various economic outcomes. Individual
securities are then evaluated as candidates to fulfill the Portfolio's
investment objective and policies. Securities remain candidates for
inclusion in the Portfolios only if their prices and other
characteristics indicate that they have the potential to perform in a
way that is representative of their class of securities under the
different economic outcomes considered more probable by the Advisors.
Candidates for inclusion in any particular class of assets are
then examined according to the social criteria. Issuers are classified
into three categories of suitability under the social criteria. In the
first category are those issuers which exhibit unusual positive
accomplishment with respect to some of the criteria and do not fail to
meet minimum standards with respect to the remaining criteria. To the
greatest extent possible, investment selections are made from this
group. In the second category are those issuers which meet minimum
standards with respect to all the criteria but do not exhibit
outstanding accomplishment with respect to any criterion. This category
includes issuers which may lack an affirmative record of accomplishment
in these areas but which are not known by Advisors to violate any of the
social criteria. The third category under the social criteria consists
of issuers which flagrantly violate, or have violated, one or more of
those values, for example, a company which repeatedly engages in unfair
labor practices. The Fund will not knowingly purchase the securities of
issuers in this third category.
It should be noted that the Fund's social criteria tend to
limit the availability of investment opportunities more than is
customary with other investment companies. The Advisors of the Fund,
however, believe that within the first and second categories there are
sufficient investment opportunities to permit full investment among
issuers which satisfy the Fund's social investment objective.
To the greatest extent possible, the Advisors apply the same
social criteria to the purchase of non-equity securities as it applies
to equity investments. With respect to government securities, the Money
Market Portfolio invests primarily in debt obligations issued or
guaranteed by agencies or instrumentalities of the Federal Government
whose purposes further or are compatible with the Fund's social
criteria, such as obligations of the Bank for Cooperatives and the
Student Loan Marketing Association, rather than general obligations of
the Federal Government, such as Treasury securities. Bank certificates
of deposit, commercial paper, repurchase agreements, and corporate bonds
are judged in the same way as a prospective purchase of the bank's or
issuing company's common stock. The Fund may invest, however, in
certificates of deposit of banks and savings and loan associations in
which the Fund would not otherwise invest because such institutions have
assets of $1 billion or less, but generally only to the extent all such
investments are fully insured as to principal by the Federal Deposit
Insurance Corporation.
Obligations issued by the U.S. Treasury, such as U.S. Treasury
bills, notes and bonds, are supported by the full faith and credit of
the U.S. Government. Certain obligations issued or guaranteed by a U.S.
Government agency or instrumentality are supported by the full faith and
credit of the U.S. Government. These include obligations issued by the
Export-Import Bank, Farmers Home Administration, Government National
Mortgage Association, Postal Service, Merchant Marine, and Washington
Metropolitan Area Transit Authority. The Fund may also invest in other
U.S. Government agency or instrumentality obligations which are
supported only by the credit of the agency or instrumentality and may be
further supported by the right of the issuer to borrow from the U.S.
Treasury. Such obligations include securities issued by the Bank for
Cooperatives, Federal Intermediate Credit Bank, Federal Land Bank,
Federal Home Loan Bank, Federal Home Loan Mortgage Corporation, and
Federal National Mortgage Association.
==========================================================================
DIVIDENDS AND TAXES
==========================================================================
It is the policy of the Equity Portfolio to declare and pay
dividends from net investment income on an annual basis. It is the Bond
Portfolio's policy to declare and pay dividends from net investment
income on a monthly basis; the Managed Growth Portfolio declares and
pays dividends on a quarterly basis. Dividends and distributions may
differ among the classes. The Money Market Portfolio accrues daily and
pays monthly dividends of its net investment income to its shareholders
of record as of the close of business that day. Distributions of
realized net capital gains, if any, are normally paid once a year;
however, the Fund does not intend to make any such distributions unless
available capital loss carryovers, if any, have been used or have
expired.
Generally, dividends (including short-term capital gains) and
distributions are taxable to the shareholder in the year they are paid.
However, any dividends and distributions paid in January but declared
during the prior three months are taxable in the year declared.
The Fund is required to withhold 31% of any dividends and
long-term capital gain distributions paid and 31% of each redemption
transaction occurring in the Managed Growth, Equity and Bond Portfolios
if: (a) the shareholder's social security number or other taxpayer
identification number ("TIN") is not provided or an obviously incorrect
TIN is provided; (b) the shareholder does not certify under penalties of
perjury that the TIN provided is the shareholder's correct TIN and that
the shareholder is not subject to backup withholding under section
3406(a)(1)(C) of the Internal Revenue Code because of underreporting
(however, failure to provide certification as to the application of
section 3406(a)(1)(C) will result only in backup withholding on
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 Fund is required to report to the Internal
Revenue Service the following information with respect to each
redemption transaction occurring in the Managed Growth, Equity and Bond
Portfolios: (a) the shareholder's name, address, account number and
taxpayer identification number; (b) the total dollar value of the
redemptions; and (c) the Fund'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; foreign central banks of
issue. Non-resident aliens, certain foreign partnerships and foreign
corporations are generally not subject to either requirement but may
instead be subject to withholding under sections 1441 or 1442 of the
Internal Revenue Code. Shareholders claiming exemption from backup
withholding and broker reporting should call or write the Fund for
further information.
Many states do not tax the portion of the Fund's dividends
which is derived from interest on U.S. Government obligations. State law
varies considerably concerning the tax status of dividends derived from
U.S. Government obligations. Accordingly, shareholders should consult
their tax advisors about the tax status of dividends and distributions
from the Fund in their respective jurisdictions.
Dividends paid by the Fund may be eligible for the dividends
received deduction available to corporate taxpayers. Information
concerning the tax status of dividends and distributions and the amount
of dividends withheld, if any, is mailed annually to Fund shareholders.
Investors should note that they may be required to exclude the
initial sales charge, if any, paid on the purchase of Fund 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 Fund 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 shares as incurred to acquire the new shares.
==========================================================================
NET ASSET VALUE
==========================================================================
Shares of the Money Market Portfolio are issued and redeemed at
the net asset value per share of the Portfolio. The public offering
price of the shares of the Managed Growth, Equity and Bond Portfolios is
the respective net asset value per share (plus, for Class A shares, the
applicable sales charge). Shares of the Managed Growth, Equity and Bond
Portfolios are redeemed at their respective net asset values per share.
The Money Market Portfolio attempts to maintain a constant net asset
value of $1.00 per share; the net asset values of the Managed Growth,
Equity and Bond Portfolios fluctuate based on the respective market
value of the Portfolios' investments. The net asset value per share of
each of the Portfolios is determined every business day at the close of
the New York Stock Exchange (normally 4:00 p.m. Eastern time) and at
such other times as may be necessary or appropriate. The Fund does not
determine net asset value on certain national holidays or other days on
which the New York Stock Exchange is closed: New Year's Day, Presidents'
Day, Good Friday, Memorial Day, Independence Day, Labor Day,
Thanksgiving Day, and Christmas Day. Each Portfolio's net asset value
per share is determined per class by dividing its total net assets (the
value of its assets net of liabilities, including accrued expenses and
fees) by the number of shares outstanding for that class.
The assets of the Managed Growth, Equity and Bond Portfolios
are valued as follows: (a) securities for which market quotations are
readily available are valued at the most recent closing price, mean
between bid and asked price, or yield equivalent as obtained from one or
more market makers for such securities; (b) securities maturing within
60 days may be valued at cost, plus or minus any amortized discount or
premium, unless the Board of Trustees determines such method not to be
appropriate under the circumstances; and (c) all other securities and
assets for which market quotations are not readily available will be
fairly valued by the Advisor in good faith under the supervision of the
Board of Trustees.
The Money Market Portfolio's assets, including securities
subject to repurchase agreements, are normally valued at their amortized
cost which does not take into account unrealized capital gains or
losses. This involves valuing an instrument at its cost and thereafter
assuming a constant amortization to maturity of any discount or premium,
regardless of the impact of fluctuating interest rates on the market
value of the instrument. While this method provides certainty in
valuation, it may result in periods during which value, as determined by
amortized cost, is higher or lower than the price that would be received
upon sale of the instrument.
Rule 2a-7 under the Investment Company Act of 1940 permits the
Fund to value the Money Market Portfolio's assets at amortized cost if
the Portfolio maintains a dollar-weighted average maturity of 90 days or
less and only purchases obligations having remaining maturities of 13
months or less. Rule 2a-7 requires, as a condition of its use, that the
Money Market Portfolio invest only in obligations determined by the
Trustees to be of good quality with minimal credit risks and 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 upon available market quotations.
==========================================================================
CALCULATION OF YIELD AND TOTAL RETURN
==========================================================================
Money Market Portfolio: Yield
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.
The "yield" of the Money Market Portfolio refers to the actual income
generated by an investment in the Portfolio over a particular base
period of time. 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 September 30, 1995, the Money
Market Portfolio's yield was 5.13% and its effective yield was 5.26%.
Bond Portfolio: Yield
The Bond Portfolio may also advertise its yield from time to
time. Yield quotations are historical and are not intended to indicate
future performance. Yield quotations for the Bond Portfolio are
calculated separately by class and 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 for that class 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 semiannual, basis.
The Bond Portfolio's yield is computed according to the following
formula:
Yield = 2 (+1)6 - 1
where a = dividends and interest earned during the period using the
aggregate imputed yield-to maturity for each of the Portfolio's
investments as noted above; 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 Bond Portfolio's yield for the month ended
September 30, 1995 was 5.28% for Class A shares, and 4.69% for Class C
shares.
The yield of both the Money Market and Bond Portfolios will
fluctuate in response to changes in interest rates and general economic
conditions, portfolio quality, portfolio maturity, and operating
expenses. Yield is not fixed or insured and therefore is not comparable
to a savings or other similar type of account. Yield during any
particular time period should not be considered an indication of future
yield. It is, however, useful in evaluating a Portfolio's performance in
meeting its investment objective.
Managed Growth, Equity and Bond Portfolios: Total Return and Other
Quotations
The Managed Growth, Bond and Equity Portfolios may each
advertise "total return." Total return is calculated separately for each
class. Total return is computed by taking the total number of shares
purchased by a hypothetical $1,000 investment after deducting any
applicable sales charge, adding all additional shares purchased within
the period with reinvested dividends and distributions, calculating the
value of those shares at the end of the period, and dividing the result
by the initial $1,000 investment. Note: "Total Return" as quoted in the
Financial Highlights section of the Fund's Prospectus and Annual Report
to Shareholders, however, per SEC instructions, does not reflect
deduction of the sales charge, and corresponds to "overall" return as
referred to herein. For periods of more than one year, the cumulative
total return is then adjusted for the number of years, taking
compounding into account, to calculate average annual total return
during that period.
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 period.
Total return is historical in nature and is not intended to
indicate future performance. All total return quotations reflect the
deduction of the Portfolio's maximum sales charge, except quotations of
"overall return," which do not deduct sales charge, and "actual return,"
which reflect deduction of the sales charge only for those periods when
a sales charge was actually imposed. Overall return, which will be
higher than total return, 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.
Return for the Managed Growth, Bond and Equity Portfolios'
shares for the periods indicated are as follows:
Periods Ended Class A Class A Class C
September 30, 1995 Overall Return Average Average
Annual Return Annual Return
============================================================================
Managed Growth Portfolio
One Year 18.21% 12.61% 16.85%
Five Years 10.43% 9.36% N/A
Ten Years 11.10% 10.57% N/A
Class C: Since
inception (March 1, N/A N/A 7.65%
1994)
Periods Ended Class A Class A Class C
September 30, 1995 Overall Return Average Average
Annual Return Annual Return
===============================================================================
Bond Portfolio
One Year 12.57% 8.37% 11.21%
Five Years 9.23% 8.40% N/A
From Inception<F1> 9.15% 8.64% 3.71%
Periods Ended Class A Class A Class C
September 30, 1995 Overall Return Average Average
Annual Return Annual Return
===============================================================================
Equity Portfolio
One Year 12.43% 7.10% 11.16%
Five Years 8.70% 7.65% N/A
From Inception<F2> 6.60% 5.96% 0.26%
The Class A total return figures above and the Bond Portfolio
yield figures above were calculated using the maximum sales charge in
effect at that time. New sub-advisors assumed management of the Equity
Portfolio effective February, 1994, and new sub-advisors assumed
management of the Managed Growth Portfolio effective July, 1995. Total
return, like yield and net asset value per share, fluctuates in response
to changes in market conditions. Neither total return nor yield for any
particular time period should be considered an indication of future
return.
==========================================================================
PURCHASE AND REDEMPTION OF SHARES
==========================================================================
Share certificates will not be issued unless requested in
writing by the investor. No charge will be made for share certificate
requests. No certificates will be issued for fractional shares of any
Portfolio. A service fee of $10, plus any costs incurred by the Fund,
will be charged investors whose purchase checks are returned for
insufficient funds.
Shareholders in the Money Market Portfolio wishing to have
drafts should complete the signature card enclosed with the Investment
Application. Existing shareholders may arrange for draft writing by
contacting the Fund for a signature card. Other documentation may be
required from corporations, fiduciaries and institutional investors.
This draft writing service will be subject to the customary rules and
regulations governing checking accounts, and the Fund reserves the right
to change or suspend the service. Generally, there is no charge to you
for the maintenance of this service or for the clearance of drafts, but
the Fund reserves the right to charge a service fee for drafts returned
for insufficient or uncollected funds. As a service to shareholders, the
Fund may automatically transfer the dollar amount necessary to cover
drafts you have written on the Fund to your Fund account from any other
of your identically registered accounts in Calvert money market funds or
Calvert Insured Plus. The Fund may charge a fee for this service.
When a payable through draft 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 may be returned. This draft writing
procedure for redemption enables shareholders to receive the daily
dividends declared on the shares to be redeemed until such time as the
draft is presented to the custodian bank for payment. Drafts presented
to the bank for payment which would require the redemption of shares
purchased by check or electronic funds transfer within the previous 10
business days may not be honored.
Telephone redemption requests are processed upon the date of
receipt, if received prior to 4:00 p.m. Redemption proceeds are normally
transmitted or mailed the next business day, although payment by check
of redemption proceeds of Managed Growth, Equity and Bond Portfolio
shares may take up to five business days. Telephone redemption requests
which would require the redemption of shares purchased by check or
electronic funds transfer within the previous 10 business days may not
be honored. The Fund reserves the right to modify the telephone
redemption privilege.
Amounts redeemed by telephone may be mailed by check to the
investor to the address of record without charge. Amounts of more than
$50 and less than $300,000 may be transferred electronically at no
charge to the investor. Amounts of $l,000 or more will be transmitted by
wire without charge by the Fund to the investor's account at a domestic
bank or savings association. A charge of $5 is imposed on wire transfers
of less than $1,000.
Existing shareholders who at any time desire to change
instructions already given must send a notice either to the broker
through which shares were purchased or to the Fund with a voided check
from the bank account to receive the redemption proceeds. New wiring
instructions may be accompanied by a voided check in lieu of a signature
guarantee. Further documentation may be required from corporations,
fiduciaries, pension plans, and institutional investors.
The Fund's redemption check normally will be mailed to the
investor on the next business day following the date of receipt by the
Fund of a written redemption request. If the investor so instructs in
such written redemption request, the check will be mailed or the
redemption proceeds wired or transferred electronically to a
preauthorized account at the investor's bank. Redemption proceeds are
normally paid in cash. However, at the sole discretion of the Fund, the
Fund has the right to redeem shares in assets other than cash for
redemption amounts exceeding, in any 90-day period, $250,000 or 1% of
the net asset value of the Fund, whichever is less, or as allowed by law.
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 Securities and Exchange Commission, or if the
Commission has ordered such a suspension for the protection of
shareholders. Redemption proceeds are normally mailed, wired or
transferred electronically the next business day but in no event later
than seven days after a proper redemption request has been received,
unless redemptions have been suspended or postponed as described above.
==========================================================================
REDUCED SALES CHARGES (CLASS A)
==========================================================================
The Fund imposes reduced sales charges for Class A shares in
certain situations in which the Principal Underwriter and the dealers
selling Fund 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 Fund
imposes the sales charge applicable to the goal amount. Similarly, the
Underwriter and selling dealers also experience cost savings when
dealing with existing Fund shareholders, enabling the Fund 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 Fund shares to their members. See "Exhibit A
- - Reduced Sales Charges" in the Prospectus.
==========================================================================
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 leading family of socially responsible
mutual funds, both in terms of socially responsible mutual fund assets
under management, and number of socially responsible mutual fund
portfolios offered (source: Social Investment Forum, December 31, 1994).
Calvert Group was also the first to offer a family of socially
responsible mutual fund portfolios.
==========================================================================
TRUSTEES, OFFICERS, AND ADVISORY COUNCIL
==========================================================================
REBECCA ADAMSON, Trustee. Since 1983, Ms. Adamson has served as
President of the national non-profit, First Nations Financial Project.
Founded by her in 1980, First Nations is the only American Indian
alternative development institute in the country. Address: 69 Kelley
Road, Falmouth, Virginia 22405.
RICHARD L. BAIRD, JR., Trustee. Mr. Baird is Director of
Finance for the Family Health Council, Inc. in Pittsburgh, Pennsylvania.
The Family Health Council is a non-profit corporation which provides
family planning services, nutrition, maternal/child health care, and
various health screening services. Mr. Baird is a trustee/director of
each of the investment companies in the Calvert Group of Funds, except
for Calvert New World Fund, Inc., Acacia Capital Corporation, and
Calvert World Values Fund, Inc. Address: 211 Overlook Drive, Pittsburgh,
Pennsylvania 15216.
<F1> JOHN G. GUFFEY, JR., Executive Vice President and 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 Calvert
New World Fund, Inc. and Acacia Capital Corporation. Address: 7205
Pomander Lane, Chevy Chase, Maryland 20815.
JOY V. JONES, Esq., Trustee. Ms. Jones is an attorney and
entertainment manager in New York City, and was formerly a partner with
the firm Rogers & Wells in New York City, specializing in real estate
law and municipal finance. Ms. Jones is also a Trustee of Sarah Lawrence
College, a member of the Association of Black Women Attorneys, Inc., and
a Trustee of the Community Service Society of New York. Address: 175
West 12th Street, New York, New York 10011.
TERRENCE J. MOLLNER, Ed.D., Trustee. Dr. Mollner is Founder and
Chairperson of Trusteeship Institute, Inc., a diverse foundation known
principally for its consultation to corporations converting to
cooperative employee-ownership. He is also a director of Calvert World
Values Fund, Inc. He served as a Trustee of the Cooperative Fund of New
England, Inc., and is now a member of its Board of Advisors. In
addition, Dr. Mollner is a founder and member of the Board of Trustees
of the Foundation for Soviet-American Economic Cooperation. Address: 15
Edwards Square, Northampton, Massachusetts 01060.
SYDNEY AMARA MORRIS, Trustee. Rev. Morris is Senior Minister of
the Unitarian Church of Vancouver, Canada. She previously served as
Minister of the Unitarian-Universalist Fellowship in Ames, Iowa. Rev.
Morris is a graduate of the Harvard Divinity School. Address: 1225 W.
26th Avenue, Vancouver, British Columbia, Canada V6H2A8.
<F1>CHARLES T. NASON, Trustee. Mr. Nason serves as Chairman,
President and Chief Executive Officer of The Acacia Group, a Washington,
D.C.-based financial services organization, including Acacia Mutual Life
Insurance Company and Calvert Group, Ltd. Address: 51 Louisiana Avenue,
N.W., Washington, D.C. 20001.
<F1> D. WAYNE SILBY, Esq., President and Trustee. Mr. Silby is a
trustee/director of each of the investment companies in the Calvert
Group of Funds, except for Calvert New World Fund, Inc. and Acacia
Capital Corporation. 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. Address: 1715 18th
Street, N.W., Washington, D.C. 20009.
<F1> CLIFTON S. SORRELL, JR., President and Trustee. Mr. Sorrell
serves as President, Chief Executive Officer and Vice Chairman of
Calvert Group, Ltd. and as an officer and director of each of its
affiliated companies. He is a director of Calvert-Sloan Advisers,
L.L.C., and a trustee/director of each of the investment companies in
the Calvert Group of Funds.
<F1> 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.
<F1> RONALD M. WOLFSHEIMER, CPA, Treasurer. Mr. Wolfsheimer is
Senior Vice President and Controller of Calvert Group, Ltd. and its
subsidiaries and an officer of each of the other investment companies in
the Calvert Group of Funds. Mr. Wolfsheimer is Vice President and
Treasurer of Calvert-Sloan Advisers, L.L.C., and a director of Calvert
Distributors, Inc.
<F1> WILLIAM M. TARTIKOFF, Esq., Vice President and Assistant
Secretary. Mr. Tartikoff is an officer of each of the investment
companies in the Calvert Group of Funds, and is Senior Vice President,
Secretary, and General Counsel of Calvert Group, Ltd., and each of its
subsidiaries. Mr. Tartikoff is also Vice President and Secretary of
Calvert-Sloan Advisers, L.L.C., a director of Calvert Distributors,
Inc., and is an officer of Acacia National Life Insurance Company.
<F1> EVELYNE S. STEWARD, Vice President. Ms. Steward is Senior
Vice President of Calvert Group, Ltd., and a director of Calvert-Sloan
Advisers, L.L.C. She is the sister of Philip J. Schewetti, the portfolio
manager of the CSIF Equity Portfolio.
<F1> STEVEN J. SCHUETH, Vice President. Mr. Schueth serves as
President of Calvert Distributors, Inc., and as Vice President of
Calvert-Sloan Advisers, L.L.C.
<F1> CATHERINE S. BARDSLEY, Esq., Secretary. Ms. Bardsley is
counsel to Kirkpatrick & Lockhart, the Fund's legal counsel. Address:
1800 M Street, South Lobby, N.W., Washington, D.C. 20036.
<F1> DANIEL K. HAYES, Vice President. Mr. Hayes is Vice President
of Calvert Asset Management Company, Inc., and is an officer of each of
the other investment companies in the Calvert Group of Funds, except for
Calvert New World Fund, Inc.
<F1> SUSAN WALKER BENDER, Esq., Assistant Secretary. Ms. Bender is
Associate General Counsel of Calvert Group, Ltd. and an officer of each
of its subsidiaries and Calvert-Sloan Advisers, L.L.C. She is also an
officer of each of the other investment companies in the Calvert Group
of Funds.
<F1> BETH-ANN ROTH, Esq., Assistant Secretary. Ms. Roth is
Associate General Counsel of Calvert Group, Ltd. and an officer of each
of its subsidiaries and Calvert-Sloan Advisers, L.L.C. She is also an
officer of each of the other investment companies in the Calvert Group
of Funds.
<F1>"Interested persons" of the Fund under the Investment Company Act of 1940.
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.
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, Silby and Sorrell.
Mr. Baird and Dr. Mollner serve as the Fund's representatives
to the respective Audit Committees of the other investment companies in
the Calvert Group of Funds; and Rev. Morris and Ms. Jones serve as the
Fund's representatives to the respective Investment Policy Committees of
the other investment companies in the Calvert Group of Funds. Ms.
Adamson, Dr. Mollner, and Mr. Silby serve on the Fund's High Social
Impact Investments Committee which assists the Fund in identifying,
evaluating and selecting investments in securities that offer a rate of
return below the then-prevailing market rate and that present attractive
opportunities for furthering the Fund's social criteria. Ms. Jones, Rev.
Morris, and Messrs. Guffey, Silby, and Sorrell serve on the Fund's
Special Equities Committee which assists the Fund in identifying,
evaluating, and selecting appropriate private placement investment
opportunities for the Fund that are not high social impact investments.
The Advisory Council has no power, authority or responsibility with
respect to the management of the Fund or the conduct of the affairs of
the Fund. Messrs. Silby, Guffey, Sorrell, Mollner and Baird, Ms.
Adamson, Ms. Jones, Rev. Morris, and Ms. Sannino and Mr. Sarkady of the
Advisory Council, serve as trustees of Calvert Social Investment
Foundation, a non-profit organization formed to increase awareness and
educate the general public about the benefits of socially conscious
investing. The Foundation is not directly affiliated with Calvert Group.
During fiscal 1994, trustees of the Fund not affiliated with
the Fund's Advisor were paid $44,218 by the Money Market Portfolio,
$164,497 by the Managed Growth Portfolio, $18,850 by the Bond Portfolio,
and $27,708 by the Equity Portfolio. Trustees of the Fund not affiliated
with the Advisor presently receive an annual fee of $20,250 for service
as a member of the Board of Trustees of the Calvert Group of Funds, and
a fee of $750 to $1200 for each regular Board or Committee meeting
attended; such fees are allocated among the respective Portfolios based
upon their relative net assets. Trustees who do not serve on the Board
of other Funds sponsored by the Advisor receive an annual fee of
$12,400, plus $600 for each Board and Committee meeting attended.
Members of the Advisory Council receive $600 for each meeting attended,
plus expenses.
Trustees of the Fund not affiliated with the Fund's Advisor may
elect to defer receipt of all or a percentage of their fees and invest
them in any fund in the Calvert Family of Funds through the Trustees
Deferred Compensation Plan (shown as "Pension or Retirement Benefits
Accrued as part of Fund Expenses," below). Deferral of the fees is
designed to maintain the parties in the same position as if the fees
were paid on a current basis. Management believes this will have a
negligible effect on the Fund's assets, liabilities, net assets, and net
income per share, and will ensure that there is no duplication of
advisory fees.
Trustee Compensation Table
Fiscal Year 1995 Aggregate Pension or Total Compensation
(unaudited Compensation Retirement from Registrant and
numbers) from Registrant Benefits Accrued Fund Complex paid to
for service as as part of Trustees<F3>
Trustee Registrant
Name of Trustee Expenses<F2>
..........................................................................
Rebecca Adamson $15,889 $7,600 $23,030
Richard L. Baird, Jr. $ 1,197 $0 $33,450
John G. Guffey, Jr. $ 3,597 $0 $40,450
Joy V. Jones $29,403 $0 $29,430
Terrence J. Mollner $37,495 $0 $40,230
Sydney Amara Morris $20,402 $0 $20,430
D. Wayne Silby $12,401 $0 $47,965
<F2> Ms Adamson has chosen to defer a portion of her compensation. Her total
deferred comensation, including dividends and capital appreciation, was
$21,505 as of September 30, 1995.
<F3> As of December 31, 1995. The Fund Complex consists of eight (8)
registered investment companies.
==========================================================================
INVESTMENT ADVISOR
==========================================================================
The Fund's Investment Advisor is Calvert Asset Management
Company, Inc., 4550 Montgomery Avenue, 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 was
entered into on January 3, 1984, (May 24, 1994 for the Equity Portfolio)
and will remain in effect indefinitely, provided continuance is approved
at least annually by the vote of the holders of a majority of the
outstanding shares of the Fund or by the Board of Trustees of the Fund;
and further provided that such continuance is also approved annually by
the vote of a majority of the trustees of the Fund who are not parties
to the Contract or interested persons of parties to the Contract or
interested persons of such parties, cast in person at a meeting called
for the purpose of voting on such approval. The Contract may be
terminated without penalty by either party upon 60 days' prior written
notice; it automatically terminates in the event of its assignment.
Under the Contract, the Advisor provides investment advice to
the Fund and oversees its day-to-day operations, subject to direction
and control by the Fund's Board of Trustees. For its services, the
Advisor receives an annual fee of 0.70% of the Managed Growth
Portfolio's average daily net assets, 0.65% of the Bond Portfolio's
average daily net assets, and 0.50% of the Money Market Portfolio's
average daily net assets, which fee is payable monthly. See "Management
of the Fund" in the Prospectus for the Managed Growth and Equity
Portfolio advisory and sub-advisory fees, which include a performance
adjustment fee. The Advisor reserves the right (i) to waive all or a
part of its fee and (ii) to reallocate a part of its fee to
broker-dealers in consideration of their promotional or administrative
services.
The Managed Growth Portfolio is managed by multiple investment
sub-advisors, effective July, 1995, as approved by the Portfolio's
shareholders on August 30, 1995. With the multi-manager approach, there
will be several investment strategies in place at any given time in
order to help the Portfolio pursue its investment objectives.
Specifically, CAM has retained a pool of five investment sub-advisors to
manage the Managed Growth Portfolio's assets, though they will not
necessarily be managing the Portfolio's money at the same time. CAM
initially has retained two of the five companies, U.S. Trust Company of
Boston and NCM Capital Management Group, Inc., to manage assets, and CAM
manages a portion of the fixed-income assets itself. Brown Capital
Management, Inc., Fortaleza Asset Management, Inc. and Frontier Capital
Management, Inc. are not managing Portfolio assets at this time. See
"Management of the Fund" in the Prospectus for the Managed Growth and
Equity Portfolio sub-advisory fees, which include a performance
adjustment fee.
The Fund's Sub-Advisor to the Bond Portfolio is United States
Trust Company of Boston ("U.S. Trust"), a Massachusetts-chartered
commercial bank with full trust powers. It is wholly-owned by and the
principal subsidiary of UST Corp., a Massachusetts bank holding company.
The Trust Department of U.S. Trust has managed funds as a fiduciary
since 1895. U.S. Trust pioneered the concept and practice of socially
responsible investing and has managed socially screened portfolios for
over two decades. Pursuant to an Investment Sub-Advisory Agreement with
the Advisor, U.S. Trust determines investment selections for the Bond
Portolio. For its services, U.S. Trust receives an annual fee from the
Advisor 0.20% of the Bond Portfolio's average daily net assets; however,
U.S. Trust is entitled to receive from the Advisor a minimum monthly fee
of $1,000. U.S. Trust has agreed to waive its fee on those assets
designated as High Social Impact Investments for the Managed Growth and
Bond Portfolios. See Prospectus ("Additional Investment Policies").
U.S. Trust also provides social screening research for the
Fund's Money Market Portfolio. The Advisor, not the Fund, pays U.S.
Trust for this service, a fee of 0.06% of the Money Market Portfolio's
average daily net assets up to $50 million, and 0.03% of the average
daily net assets in excess of $50 million.
Effective February 1, 1994, Loomis, Sayles & Company, L.P.
("Loomis"), replaced U.S. Trust as Sub-Advisor to the Equity Portfolio.
See Prospectus, "Management of the Fund." The computation of the
Investment Performance Fee and the Investment Record Period will be made
in accordance with Rule 205-1 under the Investment Advisors Act of 1940
or any other applicable rule as, from time to time, may be adopted or
amended. In addition to the sub-advisory fee, the Advisor pays a
marketing fee of 0.05% to Loomis, based on the Equity Portfolio's
average daily net assets.
The Advisor provides the Fund with investment supervision and
management, administrative services, office space, furnishes executive
and other personnel to the Fund, and may pay Fund advertising and
promotional expenses. The Advisor reserves the right to compensate
broker-dealers in consideration of their promotional or administrative
services. The Fund pays all other administrative and operating expenses,
including: custodial, registrar, dividend disbursing and transfer agency
fees; federal and state securities registration fees; salaries, fees and
expenses of trustees, executive officers and employees of the Fund, and
Advisory Council members, who are not "affiliated persons" of the
Advisor or the Sub-Advisor s within the meaning of the Investment
Company Act of 1940; insurance premiums; trade association dues; legal
and audit fees; interest, taxes and other business fees; expenses of
printing and mailing reports, notices, prospectuses, and proxy material
to shareholders; annual shareholders' meeting expenses; and brokerage
commissions and other costs associated with the purchase and sale of
portfolio securities. The Advisor has agreed to reimburse the Money
Market, Managed Growth, and Bond Portfolios for their respective
operating expenses (excluding brokerage, taxes, interest, Distribution
Plan expenses and extraordinary items, and, with respect to the Managed
Growth Portfolio, performance fees earned) exceeding, on a pro rata
basis, 1.5% of the first $30 million of the respective Portfolio's
average daily net assets, and 1% of such assets in excess of $30
million. The Advisor has agreed to reimburse the Equity Portfolio for
its operating expenses (excluding brokerage, taxes, interest,
Distribution Plan expenses and extraordinary items) exceeding the most
restrictive expense limitation imposed by applicable law then in effect
(currently, 2.5% of the first $30 million of the Portfolio's average
daily net assets, 2% of the next $70 million, and 1.5% of assets in
excess of $100 million).
The advisory fees paid to the Advisor by the Money Market
Portfolio for the fiscal years ended September 30, 1993, 1994, and 1995
were $794,513, $705,750, and $727,343, respectively. The advisory fees
paid to the Advisor by the Managed Growth Portfolio for the same years
were $3,353,732, $3,700,925, and $3,645,338, respectively. The advisory
fees paid to the Advisor for these years by the Bond Portfolio were
$379,437, $419,490,and $400,253; the Equity Portfolio paid $545,315,
$601,189, and $569,589, respectively.
==========================================================================
METHOD OF DISTRIBUTION
==========================================================================
The Fund has entered into an agreement with Calvert
Distributors, Inc. ("CDI") whereby CDI, acting as principal underwriter
for the Fund, makes a continuous offering of the Fund's securities on a
"best efforts" basis. Under the terms of the agreement, CDI is entitled
to receive, pursuant to the Distribution Plans, a distribution fee from
the Fund based on the average daily net assets of each Portfolio's Class
A shares, and 1.00% of each of the Managed Growth, Equity and Bond
Portfolios' Class C average daily net assets. The Equity and Bond
Portfolios did not pay distribution expenses prior to fiscal 1994, and
the Money Market Portfolio has never paid Distribution Plan expenses.
For the fiscal years ended September 30, 1993, 1994, and 1995, the
Managed Growth Portfolio paid Class A distribution plan expenses of
$1,122,761, $1,245,946, and $1,219,694, respectively. Of the Class A
distribution expenses paid in fiscal 1995, $763,327 was used to
compensate dealers for their share distribution promotional services,
$105,147 was for the printing and mailing of prospectuses and sales
materials to investors (other than current shareholders), $42,717
financed advertising, $74,175 financed compensation to the underwriter,
and $44,462 was for other direct distribution expenses. For fiscal year
1994, the Bond and Equity Portfolios paid Class A distribution plan
expenses of $52,256 and $83,170, respectively, and, for fiscal year
1995, $121,992 and $203,878, respectively. Of the distribution expenses
paid by Class A Shares of the Bond Portfolio in fiscal 1995, the full
amount was used to compensate dealers for their share distribution
promotional services. Of the distribution expenses paid by Class A
Shares of the Equity Portfolio in fiscal 1995, $193,762 was used to
compensate dealers for their share distribution promotional services,
while the remainder, $10,116, partially financed the printing and
mailing of prospectuses and sales materials to investors (other than
current shareholders). For Class A Managed Growth, Equity and Bond
Portfolio shares, CDI also receives the portion of the sales charge in
excess of the dealer reallowance. During the fiscal years ended
September 30, 1993 and 1994, Calvert Securities Corporation, the
predecessor of CDI, received net sales charges of $833,705, and
$529,807, respectively. During fiscal year 1995, CDI received net sales
charges of $203,099, $27,038, and $63,459, for the Managed Growth, Bond,
and Equity Portfolios, respectively.
For the period from inception (March 1, 1994) to September 30,
1994, the Managed Growth, Bond, and Equity Portfolios paid Class C
Distribution Plan expenses of $5,583, $922, and $1,757, respectively.
For fiscal 1995, Class C Distribution Plan expenses were $28,447,
$5,816, and $11,918, for the Managed Growth, Bond, and Equity Portfolios,
respectively. Fiscal year 1995 Class C Distribution Plan expenses for
the Managed Growth, Bond, and Equity Portfolios were used entirely to
compensate dealers distributing the Portfolios' shares, and to
compensate the underwriter.
Pursuant to Rule 12b-1 under the Investment Company Act of
1940, the Fund has adopted Distribution Plans (the "Plans") which permit
the Fund to pay certain expenses associated with the distribution and
servicing of its shares. Such expenses for Class A shares may not
exceed, on an annual basis, 0.35% of the Managed Growth, Equity and Bond
Portfolios' respective average daily net assets and 0.25% of the Money
Market Portfolio's average daily net assets. However, the Fund's Board
of Trustees has determined that, until further action by the Board, no
Portfolio shall pay Class A distribution expenses in excess of 0.25% of
its average daily net assets; and further, that Class A distribution
expenses only be charged on the average daily net assets of the Managed
Growth Portfolio in excess of $30,000,000.
Expenses under the Fund's Class C Plans may not exceed, on an
annual basis, 1.00% of the Managed Growth, Equity and Bond Portfolios'
Class C average daily net assets.
The Fund's Distribution Plans were approved by the Board of
Trustees, including the Trustees who are not "interested persons" of the
Fund (as that term is defined in the Investment Company Act of 1940) and
who have no direct or indirect financial interest in the operation of
the Plans or in any agreements related to the Plans. The selection and
nomination of the Trustees who are not interested persons of the Fund is
committed to the discretion of such disinterested Trustees. In
establishing the Plans, the Trustees considered various factors
including the amount of the distribution expenses. The Trustees
determined that there is a reasonable likelihood that the Plans will
benefit the Fund and its shareholders.
The Plans may be terminated by vote of a majority of the
non-interested Trustees who have no direct or indirect financial
interest in the Plans, or by vote of a majority of the outstanding
shares of the affected class or Portfolio of the Fund. Any change in the
Plans that would materially increase the distribution cost to a
Portfolio requires approval of the shareholders of the affected class;
otherwise, the Plans may be amended by the Trustees, including a
majority of the non-interested Trustees as described above. The Plans
will continue in effect for successive one-year terms provided that such
continuance is specifically approved by (i) the vote of a majority of
the Trustees who are not parties to the Plans or interested persons of
any such party and who have no direct or indirect financial interest in
the Plans, and (ii) the vote of a majority of the entire Board of
Trustees.
Apart from the Plans, the Advisor and CDI, at their own
expense, may incur costs and pay expenses associated with the
distribution of shares of the Fund.
==========================================================================
TRANSFER AND SHAREHOLDER SERVICING AGENT
==========================================================================
Calvert Shareholder Services, Inc., a subsidiary of Calvert
Group, Ltd., and Acacia Mutual, has been retained by the Fund to act as
transfer agent, dividend disbursing agent and shareholder servicing
agent. These responsibilities include: responding to shareholder
inquiries and instructions concerning their accounts; crediting and
debiting shareholder accounts for purchases and redemptions of Fund
shares and confirming such transactions; daily updating of shareholder
accounts to reflect declaration and payment of dividends; and preparing
and distributing semi-annual statements to shareholders regarding their
accounts. For these services, Calvert Shareholder Services, Inc.,
receives a fee based on the number of shareholder accounts and the
number of shareholder transactions. For these services, in fiscal years
1993, 1994, and 1995, the Money Market Portfolio paid Calvert
Shareholder Services, Inc. fees of $582,459, $524,627, and $508,112,
respectively. The Managed Growth Portfolio paid $830,457, $904,274, and
$851,590 in the same fiscal years, respectively. The Bond Portfolio paid
$100,637, $120,933, and $119,859 in fiscal years 1993, 1994, and 1995,
and the Equity Portfolio paid $191,423, $229,225, and $246,195 for the
same periods, 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 and
Sub-Advisor under the direction and supervision of the Fund's Board of
Trustees.
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 and Sub-Advisor
reserve 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 and the
Sub-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 or Sub-Advisor's normal research
activities or expenses. In fiscal years 1993, 1994, and 1995, no
commissions were paid to any officer, trustee or Advisory Council member
of the Fund or any of their affiliates.
The Advisor and Sub-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 or
Sub-Advisor may compensate, at its expense, such broker-dealers in
consideration of their promotional and administrative services.
Depending upon market conditions, portfolio turnover, generally
defined as the lesser of annual sales or purchases of portfolio
securities divided by the average monthly value of the Fund's portfolio
securities (excluding from both the numerator and the denominator all
securities whose maturities or expiration dates as of the date of
acquisition are one year or less), expressed as a percentage, is under
normal circumstances expected to be within 50% to 150%. For the 1993
fiscal year, the portfolio turnover rates of the Managed Growth, Bond,
and Equity Portfolios were 33%, 28%, and 43%, respectively. For 1994,
the portfolio turnover rates of the Managed Growth, Bond, and Equity
Portfolios were 34%, 19%, and 94%, respectively. The 1995 fiscal year
portfolio turnover rates of the Managed Growth, Bond, and Equity
Portfolios were 114%, 29%, and 35%, respectively.
==========================================================================
INDEPENDENT ACCOUNTANTS AND CUSTODIANS
==========================================================================
Coopers & Lybrand, L.L.P., has been selected by the Board of
Trustees to serve as independent accountants for fiscal year 1996. State
Street Bank & Trust Company, N.A., 225 Franklin Street, Boston, MA
02110, serves as custodian of the Fund's investments. First National
Bank of Maryland, 25 South Charles Street, Baltimore, Maryland 21203
also serves as custodian of certain of the Fund's cash assets. The
custodians have no part in deciding the Fund's investment policies or
the choice of securities that are to be purchased or sold for the Fund's
Portfolios.
==========================================================================
GENERAL INFORMATION
==========================================================================
The Fund was approved as a Massachusetts business trust on
November 30, 1981. 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
also 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 Fund offers two separate classes of
shares: Class A and Class C. Each class represents interests in the same
portfolio of investments but, as further described in the prospectus,
each class is subject to differing sales charges and expenses, which
differences will result in differing net asset values and distributions.
Upon any liquidation of the Fund, shareholders of each class are
entitled to share pro rata in the net assets belonging to that series
available for distribution.
The Fund will send its shareholders confirmations of purchase
and redemption transactions, as well as periodic transaction statements
and unaudited semi-annual and audited annual financial statements of the
Fund's investment securities, assets and liabilities, income and
expenses, and changes in net assets.
The Prospectus and this Statement of Additional Information do
not contain all the information in the Fund's registration statement.
The registration statement is on file with the Securities and Exchange
Commission and is available to the public.
==========================================================================
FINANCIAL STATEMENTS
==========================================================================
The Fund's audited financial statements included in its Annual
Report to Shareholders dated September 30, 1995, are expressly
incorporated by reference and made a part of this Statement of
Additional Information. A copy of the Annual Report may be obtained free
of charge by writing or calling the Fund.
==========================================================================
APPENDIX
==========================================================================
CORPORATE BOND AND COMMERCIAL PAPER RATINGS
Corporate Bonds:
Description of Moody's Investors Service Inc.'s/Standard & Poor's 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
higher rated categories.
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. The higher the degree of speculation, the
lower the rating. While such debt will likely have some quality and
protective characteristics, these are outweighed by large uncertainties
or major risk exposure to adverse conditions.
C/C: This rating is only for income bonds on which no interest
is being paid.
D: Debt in default; payment of interest and/or principal is in
arrears.
Commercial Paper Ratings:
MOODY'S INVESTORS SERVICE, INC.:
The Prime rating is the highest commercial paper rating
assigned by Moody's. Among the factors considered by Moody's in
assigning ratings are the following: (1) evaluation of the management of
the issuer; (2) economic evaluation of the issuer's industry or
industries and an appraisal of speculative-type risks which may be
inherent in certain areas; (3) evaluation of the issuer's products in
relation to competition and customer acceptance; (4) liquidity; (5)
amount and quality of long-term debt; (6) trend of earnings over a
period of ten years; (7) financial strength of a parent company and the
relationships which exist with the issuer; and (8) recognition by
management of obligations which may be present or may arise as a result
of public interest questions and preparations to meet such obligations.
Issuers within this Prime category may be given ratings 1, 2, or 3,
depending on the relative strengths of these factors.
STANDARD & POOR'S CORPORATION:
Commercial paper rated A by Standard & Poor's has the following
characteristics: (i) liquidity ratios are adequate to meet cash
requirements; (ii) long-term senior debt rating should be A or better,
although in some cases BBB credits may be allowed if other factors
outweigh the BBB; (iii) the issuer should have access to at least two
additional channels of borrowing; (iv) basic earnings and cash flow
should have an upward trend with allowances made for unusual
circumstances; and (v) typically the issuer's industry should be well
established and the issuer should have a strong position within its
industry and the reliability and quality of management should be
unquestioned. Issuers rated A are further referred to by use of numbers
1, 2 and 3 to denote the relative strength within this highest
classification.
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. 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 Calvert Distributors, Inc. 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)
*"Fund" in this Letter of Intent shall refer to the Fund or Portfolio,
as the case may be, here indicated.
