PROSPECTUS
March 31, 1998
CALVERT SOCIAL INVESTMENT FUND
MANAGED INDEX PORTFOLIO
CLASS A, B, AND C
4550 Montgomery Avenue, Bethesda, Maryland 20814
INVESTMENT OBJECTIVE
The Managed Index Portfolio (the "Portfolio") seeks to provide a total return
after expenses which exceeds over time the total return of the Russell 1000
Index. The Portfolio seeks to obtain this objective while maintaining risk
characteristics similar to those of the Russell 1000 Index and through
investment in equity securities that satisfy the Portfolio's investment and
social criteria.
WHETHER THE PORTFOLIO IS FOR YOU
The Portfolio is designed for investors who are seeking returns which exceed
the Russell 1000 Index with similar risk characteristics and who want to
invest in socially responsible companies.
PURCHASE INFORMATION
This prospectus offers three 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"), (ii) Class B shares, which impose no front-end sales charge, but
will impose a deferred sales charge at the time of redemption, depending on
how long you have owned the shares ("contingent deferred sales charge," or
"CDSC"); or (iii) Class C shares which impose no front-end sales charge but
will impose a CDSC if shares are sold within one year. Class C shares are not
available through all brokers. Class B and 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.
Some classes of shares may not be available at this time. Call Calvert at
1-800-368-2745 regarding class availability.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION, NOR HAS THE COMMISSION
OR ANY STATE SECURITIES COMMISSION PASSED ON THE ACCURACY OR ADEQUACY OF THIS
PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
THE PORTFOLIO'S SHARES ARE NOT GUARANTEED OR INSURED BY THE FDIC OR ANY OTHER
AGENCY OF THE U.S. GOVERNMENT, NOR ARE THE SHARES DEPOSITS OR OBLIGATIONS OF,
OR GUARANTEED OR ENDORSED BY, STATE STREET BANK AND TRUST COMPANY, OR ANY
OTHER BANK. AS WITH ANY INVESTMENT IN COMMON STOCKS, WHICH ARE SUBJECT TO
WIDE FLUCTUATIONS IN MARKET VALUE, YOU COULD LOSE MONEY BY INVESTING IN THE
PORTFOLIO.
ABOUT THIS PROSPECTUS
Please read this Prospectus for information you should know before investing,
and keep it for future reference. A Statement of Additional Information for
the Portfolio dated March 3, 1998, has been filed with the Securities and
Exchange Commission and is incorporated by reference. This free Statement is
available upon request from the Portfolio: 800-368-2748.
The SEC maintains a Web site at http://www.sec.gov that contains the Statement
of Additional Information, material incorporated by reference, and other
information regarding the Portfolio.
PORTFOLIO EXPENSES
A. Shareholder Transaction Costs Class A Class B Class C
Front-End Sales Charge on Purchases 4.75% None None
(as a percentage of
offering price)
Maximum Contingent Deferred Sales None 5.00%* 1.00%**
Charge (as a percentage of original
purchase price or redemption proceeds,
as applicable)
*A contingent deferred sales charge is imposed on the proceeds of Class
B shares redeemed within 6 years, subject to certain exceptions. That charge
is imposed as a percentage of net asset value at the time of purchase or
redemption, whichever is less, and declines from 5% in the first year that
shares are held, to 4% in the second and third years, 3% in the fourth year,
2% in the fifth year, and 1% in the sixth year. There is no charge on
redemptions of Class B shares held for more than six years. See "Calculation
of Contingent Deferred Sales Charge" below.
**A contingent deferred sales charge is imposed on the proceeds of Class C
shares redeemed within one year. That charge is imposed as a percentage of
net asset value at the time of purchase or redemption, whichever is less. See
"Calculation of Contingent Deferred Sales Charge".
For each account with a balance of less than $5,000, (less than $1,000
for individual retirement plan accounts) a monthly account maintenance fee of
$1.00 is charged.
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B. Annual Portfolio Operating Expenses Class A Class B Class C
(as a percentage of average net assets)
Management Fees (includes 0.75% 0.75% 0.75%
administrative fees)
Rule 12b-1 Service and Distribution
Fees 0.25% 1.00% 1.00%
Other Expenses (Estimated after fee 0.25% 0.75% 0.75%
waiver/expense reimbursement by
Advisor)
Total Portfolio Operating Expenses 1.25% 2.50% 2.50%
(after fee waiver/expense
reimbursement by Advisor)
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, (3) for Class A
shares, payment of the maximum front-end sales charge at
the time of purchase and (4) for Class B and Class C
shares, payment of maximum applicable contingent
deferred sales charge.
1 Year 3 years
Class A $60 $85
Class B
Assuming a complete
redemption at end of period $77 $121
Assuming no redemption $25 $78
Class C
Assuming a complete
redemption at end of period $36 $78
Assuming no redemption $25 $78
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 (other than account maintenance
fees) that an investor in the Portfolio would bear directly (shareholder
transaction costs) or indirectly (annual portfolio operating expenses).
A. Shareholder Transaction Costs are charges you pay when you buy or
sell shares of the Portfolio. See "Reduced Sales Charges" at Exhibit A to see
if you qualify for possible reductions in the sales charge applicable to Class
A shares. If you request a wire redemption of less than $1,000, you will be
charged a $5 wire fee.
B. Annual Portfolio Operating Expenses. Management Fees are paid by the
Portfolio to the Advisor for managing its investments and business affairs.
Management fees include the subadvisory fee paid by Calvert Asset Management
Company, Inc. (the "Advisor") to State Street Global Advisors (the
"Subadvisor"), and the administrative service fee paid by the Portfolio to
Calvert Administrative Services Company. The Portfolio incurs Other Expenses
for maintaining shareholder records, furnishing shareholder statements and
reports, and other services. Other expenses are based on estimates for the
current fiscal year. Management Fees and Other Expenses are reflected in the
Portfolio's daily share price and are not charged directly to individual
shareholder accounts. Please refer to "Management of the Portfolio" for
further information. The Advisor may voluntarily reimburse expenses of the
Portfolio or waive its fees. The Advisor may recapture from the Fund any fees
it waives or expenses it assumes, subject to certain limitations. Through
March 31, 1999, the Advisor has agreed to cap the Portfolios' expenses at
1.25% for Class A, 2.50% for Class B, and 2.50% for Class C. Gross Total
Portfolio Operating Expenses during this period are expected to be 1.79% for
Class A, 2.82% for Class B, and 2.82% for Class C.
The Class A, Class B and Class C Rule 12b-1 fees include an asset-based sales
charge. Thus, long-term Class A, Class B or Class C shareholders in the
Portfolio may pay more in total sales charges than the economic equivalent of
the maximum front-end sales charge permitted by rules of the National
Association of Securities Dealers, Inc. (the "NASD"). In addition to the
compensation itemized above (sales charge and Rule 12b-1 service and
distribution fees), certain broker/dealers and/or their salespersons may
receive other compensation for the distribution of the securities or for
services to the Portfolio. See the Statement of Additional Information,
"Method of Distribution."
INVESTMENT OBJECTIVE AND POLICIES
Investment Objective
The Managed Index Portfolio (the "Portfolio") seeks to provide a total return
after expenses which exceeds over time the total return of the Russell 1000
Index. The Portfolio seeks to obtain this objective while maintaining risk
characteristics similar to those of the Russell 1000 Index and through
investment in equity securities that satisfy the Portfolio's investment and
social criteria. There can be no assurance that the Portfolio will be
successful in meeting its objective. Long-term capital growth may be achieved
as the Portfolio attempts to track its index. The Portfolio's investment
objective is not fundamental and, unless otherwise specified, its policies and
strategies are not fundamental. The investment objective and each
non-fundamental policy and strategy may be changed by the Fund's Board of
Trustees without shareholder approval.
INVESTMENT STRATEGY AND RELATED RISKS
Investment Strategy
The Portfolio follows an enhanced index management strategy. This means that,
rather than passively holding a representative basket of securities designed
to match the Russell 1000 Index, the Subadvisor actively uses a proprietary
analytical model to attempt to enhance the Portfolio's performance, relative
to that index.
The first step of the investment strategy is to identify those stocks in the
Russell 1000 Index which meet the Portfolio's social screening criteria. From
this list of stocks, the Subadvisor chooses stocks that closely mirror the
index in terms of various factors such as industry weightings, capitalization,
and yield. By providing exposure to these various factors which affect
returns to match the factor exposure of the index, the Subadvisor seeks to
provide a return for the Portfolio that differs only minimally from the Index.
Even though certain industries are eliminated from the Portfolio by the
screens, the factor model permits mathematical substitutes which the
Subadvisor expects to mimic the return characteristics of the missing
industries and stocks. The final step in the process is to apply the
Subadvisor's proprietary valuation method which attempts to identify the
stocks which have the greatest potential for superior performance.
Each security identified for potential investment is ranked according to two
separate and relatively uncorrelated measures: value and momentum of market
sentiment. The value measure compares a company's assets, projected earnings
growth and cash flow growth with its stock price within the context of its
historical valuation. The momentum measure of market sentiment examines
changes in market analysts' earnings estimates and ranks stocks by the
strength and consistency of those changes. These two measures combine to
create a single composite score of each stock's attractiveness. The Portfolio
is constructed from securities that meet its social criteria, weighted through
a quadratic optimization1 process that seeks to reduce risk vis-#-vis the
Russell 1000 Index.
The Portfolio will generally have at least 65% of its total assets invested in
securities represented in the Russell 1000 Index. Any investments not in the
Index will meet the Portfolio's social screening criteria and be selected to
closely mirror the Index's risk/return characteristics. The Subadviser
expects to hold between 100 and 150 stocks.
The Russell 1000 index measures the performance of the 1,000 largest companies
in the Russell 3000 Index. The Russell 3000 Index measures the performance of
the 3,000 largest US companies based on total market capitalization. The
Index is adjusted, or reconstituted, annually. As of the latest
reconstitution, the average market capitalization of the Russell 1000 was
approximately $7.6 billion; the median market capitalization was approximately
$3.0 billion. The smallest company in the Russell 1000 Index had an
approximate market capitalization of $1.1 billion.
Tracking the Index
The Subadvisor expects a tracking error over time of no more than 2.5%,
although there can be no guarantee such results will be achieved. The process
used by the Portfolio to attempt to track the Index within this limit relies
on assessing the difference between the Portfolio's exposure to factors which
influence returns and the Index's exposure to those same factors. The combined
variability of these factors and the correlation between factors are used to
estimate the risk in the Portfolio. The extent to which the total risk
characteristics of the Portfolio varies from that of the Index is active risk
or tracking error.
The Portfolio's ability to track the index will be monitored by
analyzing returns to ensure that the returns are reasonably consistent with
Index returns. By regressing Portfolio returns against Index returns the
Advisor can calculate the goodness of fit, as measured by the Coefficient of
Determination or R -squared. Values in excess of 90% indicate a very high
degree of correlation between the Portfolio and the Index. The Portfolio will
also be monitored to ensure that general characteristics, such as sector
exposures, capitalization and valuation criteria, are relatively consistent
over time.
Any deviations of realized returns from the Index which are in excess
of those expected will be analyzed for sources of variance. Where variations
are deemed to be systematic or associated with a particular feature of the
investment process, the constraints on the Portfolio associated with that
factor may be adjusted to ensure a higher degree of correlation to the Index.
Risks
An index fund has operating expenses; a market index does not. The Portfolio
- - while expected to track its target index as closely as possible while
satisfying its investment and social criteria - will not be able to match the
performance of the index exactly. The Portfolio is not sponsored, sold,
promoted, or endorsed by the Frank Russell Company.
The Portfolio is subject to market risk, which is the possibility that stock
prices overall will decline over short or even extended periods. Stock
markets tend to move in cycles, with periods of rising stock prices and
periods of falling stock prices. The Portfolio's total return and share price
will fluctuate within a wide range, so an investor could lose money over short
or even extended periods.
In seeking returns consistent with the Russell 1000 Index universe of stocks,
the Portfolio will normally be as fully invested as practicable in stocks or
their equivalents. The Portfolio does not currently anticipate holding more
than 5% of its net assets in cash or cash equivalents.
The Portfolio may use stock futures and options as part of its investment
strategy
Besides investing in the stocks found in the Russell 1000 Index, the Portfolio
may also follow a number of other investment policies to achieve its
objective. These techniques may involve derivative transactions such as buying
and selling futures contracts and options on futures. The Portfolio can use
these practices for liquidity and to seek to hedge cash exposure in the
Portfolio. The decision to invest in these instruments will be based on market
conditions, regulatory limits and tax considerations. There can be no
assurance that engaging in options, futures, or any other investment strategy
will be successful. If market values or other economic factors are misgauged,
the Portfolio may be worse off than had it not employed the strategy. If
market conditions are judged incorrectly, if a strategy does not correlate
well with the Portfolio'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 the Portfolio and may
involve a small investment of cash relative to the magnitude of the risk
assumed. The use of these strategies may result in a disadvantage to the
Portfolio if it is not able to purchase or sell a portfolio holding at an
optimal time due to the need to cover its transaction in its segregated
account, or due to the inability of the Portfolio to liquidate its position
because of its relative illiquidity. See the Statement of Additional
Information for more details about these strategies and limitations on
illiquid securities.
Borrowing/Repurchase Agreements/Securities Lending
The 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 one third of the value of the Portfolio's total
assets. The Portfolio may also invest in repurchase agreements with
recognized securities dealers and banks determined to present minimal credit
risk by the Advisor. The Portfolio may lend its securities. The Portfolio has
no current intention to use borrowing, repurchase agreements or securities
lending with respect to more than 5%, respectively, of the Portfolio's net
assets.
Additional policies and restrictions
The Portfolio's Statement of Additional Information describes additional
policies and restrictions concerning the investments of the Portfolio.
SOCIALLY RESPONSIBLE INVESTMENT CRITERIA
EACH INVESTMENT IS SELECTED WITH A CONCERN FOR ITS SOCIAL IMPACT
The Portfolio 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 Portfolio applies the following criteria for the selection of
organizations in which it invests. The Portfolio 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 involve
subjective judgment by the Advisor.
Given these considerations, the Portfolio 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 Portfolio 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 Portfolio
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 Portfolio 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 Portfolio looks for companies with an above average
commitment to community affairs and charitable giving.
The Portfolio will not invest in an issuer which the Advisor
determines 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.
4. The manufacture of alcoholic beverages or tobacco products.
5. The operation of gambling casinos.
The Portfolio believes that social and technological change will continue to
transform America and the world into the next 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.
With respect to U.S. government securities, the Portfolio 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 Portfolio'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.
The above social screening criteria may be changed by the Board of Trustees
without shareholder approval.
TOTAL RETURN
The Portfolio may advertise total return for each class. Total return is based
on historical results and is not intended to indicate future performance.
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. 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 returns for Class A shares usually will include the effect
of paying the front-end sales charge, or CDSC in the case of Class B and C
shares. Of course, total returns will be higher if sales charges are not
taken into account. Quotations of "return without maximum sales charge" do
not reflect deduction of the sales charge. You should consider these 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. Further
information about the Portfolio's performance is contained in its Annual
Report to Shareholders, which may be obtained without charge.
MANAGEMENT OF THE PORTFOLIO
The Board of Trustees supervises the Portfolio's activities and reviews its
contracts with companies that provide services to the Portfolio.
The Portfolio is a diversified series of Calvert Social Investment Fund (the
"Trust"), an open-end management investment company organized as a
Massachusetts business trust on December 14, 1981. The other series of the
Trust are the Managed Growth, Bond, Equity and Money Market Portfolios.
The Portfolio offers four classes of shares - - Class A, Class B, Class C and
Class I. The Classes have different sales charge and other expenses which will
result in different performance. They also have different shareholder
servicing, conversation and exchange privileges. This Prospectus relates only
to Class A, B and C. For information on Class I, contact Calvert at
1-800-327-2109.
The Trust is not required to hold annual shareholder meetings, but special
meetings may be called for purposes such as electing Trustees, changing
fundamental policies, or approving a management contract. As a shareholder, you
receive one vote for each share of the Portfolio you own. Matters affecting
classes differently, such as Distribution Plans, will be voted on separately
by the affected class.
Board of Trustees
REBECCA ADAMSON
President, First Nations Development Institute
RICHARD L. BAIRD, JR.
Executive Vice President, Family Health Council, Inc.
JOHN G. GUFFEY, JR.
Co-Chair, Calvert Social Investment Foundation
Treasurer and Director, Silby, Guffey & Co., Inc.
JOY V. JONES, Esq.
Attorney and Entertainment Manager
BARBARA J. KRUMSIEK
President, Chief Executive Officer and Vice Chair, Calvert Group, Ltd. and
subsidiaries
TERRENCE J. MOLLNER, Ed.D.
Founder and Chair, Trusteeship Institute, Inc.
Co-Chair, Calvert Social Investment Foundation
(Ms.) SYDNEY AMARA MORRIS
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.
Chair, CSIF Board of Trustees
Advisory Council
The Advisory Council is a resource to the Fund's 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
ROBERT BROWNE
President, Twenty-First Century Foundation
WILLIAM J. BYNUM
President and CEO, Enterprise Corporation for the Delta
JACK CHIN
Coordinator, Funder's Forum on Environmental Education
FRED DAVIE
Program Officer, Community and Resource Development, Ford Foundation
MARIAN WRIGHT EDELMAN
President & Founder, Children's Defense Fund
MICHAEL FISCHER
Program Officer, William and Flora Hewlett Foundation
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, Breakwater Holdings
HAZEL HENDERSON
Independent Futurist and Author
ERICA HUNT
Executive Director, Twenty-First Century Foundation
GRACE LECLAIR
Writer, Consultant and Theorist Concerning the Impacts of Economics on Family
and Community Life
KAI LEE
Professor of Environmental Studies and Director of the Center for
Environmental Studies, Williams College
JESSICA LIPNACK
President, The Networking Institute, Inc.
ROBERT CARTER RANDOLPH
Attorney and Mediator/Arbitrator Washington Arbitration and Mediaton Services
RUSTUM ROY
Professor of Geochemistry, Pennsylvania State University
BYRON RUSHING
State Representative, Massachusetts
MARC DAVID SARKADY
Leadership Consultant and International Facilitator
GAIL SNOWDEN
Group Executive, Community Banking Group, Bank of Boston
JEFFREY STAMPS
Chairman, The Networking Institute, Inc.
THOMAS STONEBACK
Vice President and Chief Administrative Officer, Rodale Press, Inc.
DARRELD RAY TURNER, II
Policy Advisor, Cherokee Nation of Oklahoma
DIANE WHITE
Owner, Blackberry
D. Wayne Silby, Chair of the Fund's Board of Trustees, serves as an ex officio
member of the Advisory Council.
Calvert Asset Management Company, Inc. serves as Advisor to the Portfolio.
Calvert Asset Management Company, Inc. ("CAMCO" or the "Advisor") is the
Portfolio's investment advisor. Founded in 1976, CAMCO serves as investment
advisor to over 30 mutual funds, including the first and largest family of
socially screened funds. CAMCO assets under management as of December 31,
1997 exceeded $5 billion. The Advisor provides the Portfolio with investment
supervision and management, certain administrative services and office space;
furnishes executive and other personnel to the Portfolio; and pays the
salaries and fees of all Trustees who are employees of the Advisor or its
affiliates. The Advisor may also assume and pay certain advertising and
promotional expenses of the Portfolio and reserves the right to compensate
broker-dealers in return for their promotional or administrative services. The
Portfolio pays all other operating expenses as noted in the Statement of
Additional Information.
Calvert Group is One of the Largest Investment Management Firms in the
Washington, D.C. Area.
Calvert Group, Ltd., parent of the Portfolio's investment advisor, shareholder
servicing agent, and distributor, is a subsidiary of Acacia Mutual Life
Insurance Company of Washington, D.C. Calvert Group is one of the largest
investment management firms in the Washington, D.C. area. Calvert Group, Ltd.
and its subsidiaries are located at 4550 Montgomery Avenue, Suite 1000N,
Bethesda, Maryland 20814.
State Street Global Advisors is the Portfolio's Subadvisor.
State Street Global Advisors ("Subadvisor" or "SSGA"), a division of State
Street Bank & Trust Company ("State Street"), is the Subadvisor to the
Portfolio. Its principal business office is located at 225 Franklin Street,
Boston, Massachusetts, USA. With over $400 billion under management SSGA
provides complete global investment management services from offices in the
United States, London, Sydney, Hong Kong, Tokyo, Toronto, Montreal, and Paris.
The Subadvisor's Global Enhanced Index Products Group manages the investment
and reinvestment of the assets of the Portfolio, although the Advisor screens
potential investments for compatibility with the Portfolio's social criteria.
State Street is one of the largest providers of securities processing and
record keeping services for U.S. mutual funds and pension funds and a pioneer
in the development of U.S. and international index funds. State Street is a
wholly owned subsidiary of State Street Corporation, a publicly held bank
holding company.
The Trust has obtained an exemptive order from the Securities and Exchange
Commission to permit the Portfolio, pursuant to approval by the Board of
Trustees, to enter into and materially amend contracts with the Portfolio's
Subadvisor (including replacing the Subadvisor) without shareholder approval.
See "Investment Advisor and Subadvisor" in the Statement of Additional
Information for further details.
The Advisor receives a fee based on a percentage of the Portfolio's assets.
Pursuant to the Investment Advisory Agreement, the Portfolio pays the Advisor
an annual fee, payable monthly, of 0.60% of the Portfolio's average daily net
assets. From this, the Advisor pays the Subadvisor an annual fee, payable
monthly of 0.35% of the Portfolio's average daily net assets, subject to a
minimum annual fee of $150,000.
The Advisor may, in its discretion, defer its fees or assume certain of the
Portfolio's operating expenses. The Investment Advisory Agreement provides
that the Advisor may later, to the extent permitted by law, recapture any fees
it deferred, or expenses it assumed during the two prior years.
Calvert Administrative Services Company provides administrative services for
the Portfolio.
Calvert Administrative Services Company ("CASC"), an affiliate of the Advisor,
provides certain administrative services for the Portfolio, including the
preparation of regulatory filings and shareholder reports, the determination
of periodic distributions per share, and the maintenance of certain portfolio
and general accounting records. For providing such services, CASC receives an
annual fee from the Portfolio, payable monthly, of 0.15% of the Portfolio's
average daily net assets for each of Class A, Class B and Class C Shares.
Calvert Distributors, Inc. serves as underwriter to market the Portfolio's
shares.
Calvert Distributors, Inc. ("CDI") is the Portfolio's principal underwriter
and distributor. Under the terms of its underwriting agreement with the
Portfolio, CDI markets and distributes the Portfolio's shares and is
responsible for payment of commissions and remitting distribution and/or
service fees to broker-dealers, banks, and financial services firms,
preparation of advertising and sales literature, and printing and mailing of
prospectuses to prospective investors.
The transfer agent keeps your account records.
Calvert Shareholder Services, Inc. is the Portfolio's shareholder servicing
agent. National Financial Data Services, Inc. 1004 Baltimore, Kansas City,
Missouri, 64105, is the transfer and dividend disbursing agent.
SHAREHOLDER GUIDE
Opening An Account
You can buy shares of the Portfolio in several ways.
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 through 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 Portfolio offers four 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 B Shares - Back-End Load Option
Class B shares are sold without a sales charge at the time of purchase, but
are subject to a deferred sales charge if they are redeemed within six
calendar years after purchase. Class B shares will automatically convert to
Class A shares at the end of eight calendar years after purchase.
Class C Shares - Level Load Option
Class C shares are sold without a front-end sales charge at the time of
purchase. They are subject to a deferred sales charge if they are redeemed
within one year after purchase.
Class B and C shares have higher expenses.
The Portfolio bears some of the costs of selling its shares under Distribution
Plans with respect to its Class A, B and C shares pursuant to Rule 12b-1 under
the Investment Company Act of 1940. Payments under the Class A Distribution
Plan are limited to 0.25% annually of the average daily net asset value of
Class A shares, while payments under the Class B and C Distribution Plan are
1.00% annually of the average daily net asset 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 B and C shares, as a result of the distribution expenses described
above. (See also "Total Returns.") 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. The Portfolio will not normally accept any purchase
of Class B shares in the amount of $250,000 or more. Class C shares are not
available for investments of $1 million or more, and are not available through
all brokers. Brokers or others may receive different levels of compensation
depending on which class of shares they sell.
Class A Shares
Class A shares are offered at net asset value plus a front-end sales charge as
follows:
Amount of As a % of As a % of Allowed to
Investment offering net amount Dealers
price invested as a % of
offering
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% 0.00%*
Front-end sales charges on 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.
Class A Distribution Plan
The Portfolio 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 0.25% 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 Portfolio 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.
Class B Shares
Class B shares are offered at net asset value, without a front-end sales
charge. With certain exceptions, the Portfolio will impose a deferred sales
charge at the time of redemption as follows:
Contingent Deferred Sales
Charge As A Percentage Of
Redemption During Net Asset Value At Redemption
1st Year Since Purchase 5%
2nd Year Since Purchase 4%
3rd Year Since Purchase 4%
4th Year Since Purchase 3%
5th Year Since Purchase 2%
6th Year Since Purchase 1%
7th Year Since Purchase and Thereafter None
No deferred sales charge is imposed on amounts redeemed after six years from
purchase. If imposed, the deferred sales charge is deducted from the
redemption proceeds otherwise payable to you. The deferred sales charge is
retained by CDI. See "Calculation of Contingent Deferred Sales Charges and
Waiver of Sales Charges" below.
Class B shares that have been outstanding for eight calendar years will
automatically convert to Class A shares, which are subject to a lower
Distribution Plan charge, without imposition of a front-end sales charge or
exchange fee. The Class B shares so converted will no longer be subject to
the higher expenses borne by Class B shares. Because the net asset value per
share of the Class A shares may be higher or lower than that of the Class B
shares at the time of conversion, although the dollar value will be the same,
a shareholder may receive more or less Class A shares than the number of Class
B shares converted. Under current law, it is the Advisor's opinion that such
a conversion will not constitute a taxable event under federal income tax
law. In the event that this ceases to be the case, the Board of Trustees will
consider what action, if any, is appropriate and in the best interests of the
Class B shareholders.
Class B Distribution Plan
The Portfolio has adopted a Distribution Plan with respect to its Class B
shares (the "Class B Distribution Plan"), which provides for payments at an
annual rate of up to 1.00% of the average daily net asset value of Class B
shares, to pay expenses of the distribution of Class B shares. Amounts paid
by the Portfolio under the Class B Distribution Plan are currently used by CDI
to pay others (1) a commission at the time of purchase of 4% of the value of
each share sold; and/or (2) service fees at an annual rate of 0.25% of the
average daily net asset value of shares sold by such others, beginning in the
13th month after purchase.
Class C Shares
Class C shares are offered at net asset value, without a front-end sales
charge. With certain exceptions, the Portfolio may impose a deferred sales
charge of 1.00% on shares redeemed during the first year after purchase. If
imposed, the deferred sales charge is deducted from the redemption proceeds
otherwise payable to you. The deferred sales charge is retained by CDI. See
"Calculation of Contingent Deferred Sales Charges and Waiver of Sales Charges"
below.
Class C Distribution Plan
The Portfolio 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 Portfolio under the Class C Distribution Plan are
currently used by CDI to pay dealers and other selling firms (1) a commission
at the time of purchase of 1.00% of the value of each share sold, and (2)
beginning in the 13th month after purchase, 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%.
Calculation of Contingent Deferred Sales Charge and Waiver of Sales Charges
Class B and Class C shares that are redeemed will not be subject to a
contingent deferred charge to the extent that the value of such shares
represents (1) reinvestment of dividends or capital gains distributions, (2)
shares held more than six years (more than one year for Class C) or (3)
capital appreciation of shares redeemed. Any contingent deferred sales
charge is imposed on the net asset value of the shares at the time of
redemption or purchase, whichever is lower. Upon request for redemption,
shares not subject to the contingent deferred sales charge will be redeemed
first. Thereafter, shares held the longest will be the first to be redeemed.
The contingent deferred sales charge on Class B Shares will be waived in the
following circumstances: (1) redemption upon the death or disability of the
shareholder, plan participant, or beneficiary ("disability" shall mean a total
disability as evidenced by a determination by the federal Social Security
Administration); (2) minimum required distributions from retirement plan
accounts for shareholders 70 (OMEGA) and older (with the maximum amount
subject to this waiver being based only upon the shareholder's Calvert
retirement accounts); (3) return of an excess contribution or deferral
amounts, pursuant to sections 408(d)(4) or (5), 401(k)(8), or 402)(g)(2), or
401(m)(6) of the Internal Revenue Code; (4) involuntary redemptions of
accounts under procedures set forth by the Fund's Board of Trustees; (5) a
single annual withdrawal under a systematic withdrawal plan of up to 10% per
year of the shareholder's account balance (minimum account balance $50,000 to
establish).
<PAGE>
Arrangements with Broker-Dealers and Others
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 Portfolio and/or shares of other Portfolios underwritten by
CDI. CDI may make expense reimbursements for special training of a
broker-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 Portfolio's Rule 12b-1 Distribution Plan
and in compliance with the rules of the NASD.
HOW TO BUY SHARES
(Be sure to specify which Class you are buying)
Method New Accounts Additional
Investments
By Mail $5,000 minimum $250 minimum
Please make your check payable Please make your check payable to
to the Portfolio and mail it the Portfolio and mail it with
with your application to: your investment slip to:
Calvert Group Calvert Group
P.O. Box 419544 P.O. Box 419739
Kansas City, MO 64141-6544 Kansas City, MO 64141-6739
By Registered, Certified, or Overnight Mail:
Calvert Group Calvert Group
c/o NFDS, 6th Floor c/o NFDS, 6th Floor
1004 Baltimore 1004 Baltimore
Kansas City, MO 64105-1807 Kansas City, MO 64105-1807
Through
Your Financial
Professional $5,000 minimum $250 minimum
At the Calvert Visit the Calvert Branch Office to make investments by
Office check. See the back cover page for the address.
FOR ALL OPTIONS BELOW, PLEASE CALL YOUR FINANCIAL PROFESSIONAL OR CALVERT
GROUP AT 800-368-2745
By Exchange $5,000 minimum
$250 minimum
(From your account in another Calvert Group Portfolio)
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 $5,000 minimum
$250 minimum
By Calvert Money Not Available
$250 minimum
Controller* for 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
Net asset value, or "NAV," refers to the worth of one share. NAV is computed
per class by adding the value of all portfolio holdings, plus other assets,
deducting liabilities, and then dividing the result by the number of shares
outstanding. This value is calculated at the close of the Portfolio's business
day, which coincides with the closing of the regular session of the New York
Stock Exchange (normally 4:00 p.m. Eastern time). The Portfolio is open for
business each day the New York Stock Exchange is open. All purchases of
Portfolio shares will be confirmed and credited to your account in full and
fractional shares (rounded to the nearest 1/1000th of a share).
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. Financial futures
are valued at the settlement price established each day by the board of trade
or exchange on which they are traded.
WHEN YOUR ACCOUNT WILL BE CREDITED
Before you buy shares, please read the following information to make sure your
investment is accepted and credited properly.
Your purchase will be processed at the next offering price based on the next
net asset value calculated after your order is received and accepted. All your
purchases must be made in U.S. dollars and checks must be drawn on U.S. banks.
No cash will be accepted. The Portfolio 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 Portfolio. When you
purchase by check or with Calvert Money Controller, the Portfolio may hold
payment on redemptions until it is reasonably satisfied that the investment is
collected (normally up to 10 business days from purchase date). To avoid this
collection period, you can wire federal funds from your bank, which may charge
you a fee. As a convenience, check purchases can be received at Calvert's
offices for overnight mail delivery to the transfer agent and will be credited
the next business day or upon receipt. Any check purchase received without an
investment slip may cause delayed crediting.
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 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
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.
If your investment goals change, the Calvert Group 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. However, the Portfolio is
intended as a long-term investment and not for frequent short-term trades.
Before you make an exchange from the Portfolio, please note the following:
Call your broker or a Calvert representative for information and a
prospectus for any of Calvert's other Funds registered in your state.
Read the prospectus of the Fund into which you want to exchange for
relevant information, including class offerings. The exchange privilege
is only available in states where shares of the Fund into which you want
to exchange are registered for sale.
Complete and sign an application for an account in the Fund into which
you want to exchange, 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 you
have not declined telephone transaction privileges and the shares are not
in certificate form. See "Selling Your Shares" and "How to Sell Your
Shares-- By Telephone and-- Exchange to Another Calvert Group Fund."
You may exchange shares on which you have already paid a sales charge at
Calvert Group and shares acquired by reinvestment of dividends or
distributions into another Fund at no additional charge. Shares may only
be exchanged for shares of the same Class of another Calvert Group Fund.
No CDSC is imposed on exchanges of shares subject to a CDSC at the time
of the exchange. The applicable CDSC is imposed at the time the shares
acquired by the exchange are redeemed.
Shareholders (and those managing multiple accounts) who make two
purchases and two exchange redemptions of shares of the 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 Portfolio.
For purposes of the exchange privilege, the Portfolio is related to
Summit Cash Reserves Portfolio by investment and investor services.
The Portfolio 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 performance and price information
Calvert Group has a round-the-clock telephone service for most classes and a
website at http://www.calvertgroup.com that lets existing customers obtain
prices, yields, performance information, account balances, and, by telephone
only, authorize certain transactions.
<PAGE>
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 ($250 to $300,000) between your bank account and your account in
the Portfolio with one phone call. Allow 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. All Calvert Money Controller transaction requests must be received
by 4:00 p.m. Eastern time in order to be processed on that business day.
You may also arrange systematic monthly or quarterly investments (minimum
$250) into your Portfolio account. After you give us proper authorization, your
bank account will be debited to purchase Portfolio shares. A debit entry will
appear on your bank statement. Share purchases made through Calvert Money
Controller will be subject to the applicable sales charge. If you would like
to make arrangements for systematic monthly or quarterly redemptions from your
Calvert 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 Trust,
the transfer agent, the shareholder servicing 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.
Optional 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 Portfolio 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 statements, confirmations,
prospectuses, 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 Portfolio 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 Portfolio 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 of the
Portfolio 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 in the Portfolio 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."
Traditional and Roth individual retirement accounts (IRAs): available to
anyone who has earned income. You may also be able to make investments in
the name of your spouse, if your spouse has no earned income.
Qualified Profit-Sharing and Money Purchase Plans (including 401(k)
Plans): available to self-employed people and their partners,
corporations and their employees, and certain tax-exempt organizations.
Simple IRA and Simplified Employee Pension Plan (SEP-IRA): available to
self-employed people and their partners, or to corporations.
403(b)(7) Custodial Accounts: available to employees of most non-profit
organizations and public schools and universities.
HOW TO SELL YOUR SHARES
You may redeem all or a portion of your shares on any business day. Your
shares will be redeemed at the next net asset value calculated after your
redemption request is received (less any CDSC). See below for specific
requirements necessary to make sure your redemption request is accepted.
Remember that the Portfolio 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).
Redemptions may be made in kind if, in the sole opinion of the Advisor, it is
in the best interest of the Portfolio to do so.
Redemption Requirements To Remember
To ensure acceptance of your redemption request, please follow the procedures
described here and below.
Once your shares are redeemed, the proceeds will normally be sent to you on
the next business day, but if making immediate payment could adversely affect
the Portfolio, it may take up to 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.
Minimum account balance is $5,000.
Please maintain the minimum balance in your account . Otherwise, a monthly
$1.00 account maintenance fee will be charged.
Mail Redemption Requests To:
Calvert Group
P.O. Box 419544
Kansas City, MO.
You may redeem available funds 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. To add instructions to wire to a
destination not previously established, or if you would like funds sent to a
different address or another person, your letter must be signature guaranteed.
Type of Registration Requirements
Corporations, Associations Letter of instruction and
corporate resolution,
signed by person(s)
authorized to act on the
account, accompanied by
signature guarantee(s).
Trusts Letter of instruction
signed by the Trustee(s)
(as Trustees), 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). Your request for a redemption by
this service must be received by 4:00 p.m. Eastern time. Accounts cannot be
closed by this service. Unless they otherwise qualify for a waiver, Class B
or Class C shares redeemed by Calvert Money Controller will be subject to the
Contingent Deferred Sales Charge.
Exchange to Another Calvert Group Fund
You must meet the minimum investment requirement of the other Calvert Group
Fund. You can only exchange between accounts with identical names, addresses
and taxpayer identification number, unless previously authorized with a
signature-guaranteed letter. See "Exchanges."
Systematic Check Redemptions
If you have an account with a balance of $10,000 or more, you may have up to
two (2) redemption checks for a fixed amount sent to you on the 15th of each
month, simply by sending a letter with all information, including your account
number, and the dollar amount ($100 minimum). If you would like a regular
check mailed to another person or place, your letter must be signature
guaranteed. Unless they otherwise qualify for a waiver, Class B or Class C
shares redeemed by Systematic Check Redemption will be subject to the
Contingent Deferred Sales Charge.
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, DISTRIBUTIONS AND TAXES
Each year, the Portfolio distributes substantially all of its net investment
income and capital gains to shareholders.
Dividends from the Portfolio's net investment income are declared and paid
annually. Net investment income generally consists of the interest income,
profits from securities loans, net short-term capital gains, if any, and
dividends, less expenses. Distributions of net long-term capital gains, if
any, are normally declared and paid by the Portfolio once a year; however, the
Portfolio does not anticipate making any such distributions unless available
capital loss carryovers have been used or have expired. Dividend and
distribution payments will vary among classes because of different fees.
Distribution Payment Options
Dividends and distributions are automatically reinvested in additional shares,
unless on the account application you request to have them paid to you in cash
(by check or by Calvert Money Controller). You may also request to have your
dividends and distributions from the Portfolio invested at net asset value
("NAV") in shares of any other Calvert Group Portfolio. If you choose to have
them reinvested in the same Portfolio, the new shares will be purchased at the
NAV (no sales charge) on the reinvest date, which is generally 1 to 3 days
prior to the payment date. You must be a shareholder on the record date to
receive dividends. You must notify the Portfolio in writing prior to the
record date if you want to change your payment options. If you elect to have
dividends and/or distributions paid in cash, and the U.S. Postal Service
cannot deliver the check, or if it remains uncashed for six months, it, as
well as future dividends and distributions, will be reinvested in additional
shares. No dividends will accrue on amounts represented by uncashed
distribution or redemption checks.
"Buying a Dividend"
At the time of purchase, the share price of each class of the Portfolio 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 as dividends or capital gains
distributions. On the record date for a distribution, the Portfolio's per
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
The Portfolio normally distributes all net income and capital gain to
shareholders. These distributions are taxable to you regardless of whether
they are taken in cash or reinvested. Distributions of net investment income
are taxable as ordinary income; distributions of net long-term capital gains
are taxable as long-term capital gains regardless of how long you have held
the shares. Dividends and distributions declared during October, November or
December and paid in January of the following year are taxable in the year
they are declared. The Portfolio will mail you Form 1099-DIV in January
indicating the federal tax status of your dividends and any capital gain
distribution paid to you during the year. If distributions exceed the
Portfolio's net investment income and capital gain for the year, the excess
will reduce your tax basis for your shares in the Portfolio.
You may realize a capital gain or loss when you sell or exchange shares.
If you sell or exchange your Portfolio shares you will have a short or
long-term capital gain or loss, depending on how long you owned the shares
which were sold. In January, the Portfolio will mail you Form 1099-B
indicating the proceeds from 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.
Taxpayer Identification Number, Back-up Withholding
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 Portfolio to withhold 31% of your dividends, capital gain
distributions, and 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 at the current NAV on the date of redemption. The
Portfolio 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 Portfolio at the time of purchase to take
advantage of the reduced sales charge.
Right of Accumulation
The sales charge breakpoints are 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 the Portfolio ("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 SAI.
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:
(1) has been in existence for more than six months,
(2) has a purpose other than acquiring Fund shares at a discount, and
(3) 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.
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 of the Fund purchased for the benefit of a
retirement plan under section 457 of the I.R.C. of 1986, as amended, or for a
plan qualifying under section 403(b) and 401(k) of the Code if, at the time of
purchase a) Calvert Group has been notified in writing that the 403(b), or
401(k) plan has at least 200 eligible employees and is not sponsored by a K-12
school district: or b) the cost or current value of shares a 401(k) 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, and directors, officers and employees of the Subadvisor.
(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."
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.
<PAGE>
To Open an Account:
800-368-2748 Prospectus
March 31, 1998
Calvert Social Investment Fund
Managed Index Portfolio
(Class A, B, and C)
Performance and Prices:
Calvert Information Network
24 hours, 7 days a week
800-368-2745
Service for Existing Accounts:
Shareholders 800-368-2745
Brokers 800-368-2746
TDD for Hearing Impaired:
800-541-1524
Branch Office:
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
Registered, Certified
or Overnight Mail:
Calvert Group
c/o NFDS, 6th Floor
1004 Baltimore
Kansas City, MO 64105
Calvert Group Web-Site
Address: http://www.calvertgroup.com
PRINCIPAL UNDERWRITER
Calvert Distributors, Inc.
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
Table of Contents
Portfolio Expenses 2
Investment Objective and Policies 4
Investment Techniques and Related Risks 4
Socially Responsible Investment Criteria 6
Total Return 8
Management of the Portfolio 8
SHAREHOLDER GUIDE: 12
Alternative Sales Options 13
How to Buy Shares 17
Net Asset Value 18
When Your Account Will Be Credited 18
Exchanges 18
Other Calvert Group Services 19
How to Sell Your Shares 21
Dividends, Distributions and Taxes 23
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1 An optimizer is a mathematical algorithm for maximizing or minimizing an
objective function relative to some set of constraints - here, to minimize
tracking error (active risk) while using only those stocks which pass the
Portfolio's social screens and limiting transaction costs.
*CDI may pay the dealer a finder's fee of up to 0.50% of the amount of
purchase on purchases of over $1 million. If paid, CDI reserves the right to
recoup any portion of the amount paid to the dealer if the investor redeems
some or all shares within twelve months of the time of purchase.
