<PAGE>
SEC Registration Nos.
2-75106 and 811-3334
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-1A
REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OF 1933
Post-Effective Amendment No. 27 XX
and/or
REGISTRATION STATEMENT UNDER THE
INVESTMENT COMPANY ACT OF 1940
Amendment No. 27 XX
Calvert Social Investment Fund
(Money Market, Managed Growth,
Bond and Equity Portfolios)
(Exact Name of Registrant as Specified in Charter)
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
(Address of Principal Executive Offices)
Registrant's Telephone Number: (301) 951-4800
William M. Tartikoff, Esq.
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
(Name and Address of Agent for Service)
It is proposed that this filing will become effective
___ Immediately upon filing XX on March 31, 1998
pursuant to paragraph (b) pursuant to paragraph (b)
___ 60 days after filing on (date)
pursuant to paragraph (a) pursuant to paragraph (a)
of Rule 485.
<PAGE>
Calvert Social Investment Fund
Form N-1A Cross Reference Sheet
Item number Prospectus Caption
1. Cover Page
2. Fund Expenses
Highlights
3. Financial Highlights
Yield and Total Return
4. Investment Objectives and Policies
Investment Selection Process
Additional Investment Policies
Management of the Fund
5. Management of the Fund
6. Alternative Sales Options
Management of the Fund
Dividends and Taxes
7. How to Buy Shares
Management of the Fund
Net Asset Value
Exhibit A - Reduced Sales Charges
When Your Account Will Be Credited
Exchanges
8. Alternative Sales Options
How to Sell Your Shares
9. *
Statement of Additional Information Caption
10. Cover Page
11. Table of Contents
12. General Information
13 Investment Objectives and Policies
Investment Restrictions
Investment Selection Process
14. Trustees, Officers and Advisory Council
15. Trustees, Officers and Advisory Council
16. Investment Advisor
Transfer and Shareholder Servicing Agent
Independent Auditors and Custodians
17. Portfolio Transactions
18. General Information
19. Purchase and Redemption of Shares
Net Asset Value
20. Dividends, Distributions and Taxes
21. Method of Distribution
22. Calculation of Yield and Total Return
23. Financial Statements
* Inapplicable or negative answer
<PAGE>
PROSPECTUS JANUARY 31, 1998, REVISED AS OF MARCH 31, 1998
CALVERT SOCIAL INVESTMENT FUND
- MONEY MARKET PORTFOLIO - BOND PORTFOLIO
- MANAGED GROWTH PORTFOLIO - EQUITY PORTFOLIO
CALVERT WORLD VALUES FUND, INC.
- INTERNATIONAL EQUITY FUND
4550 MONTGOMERY AVENUE, BETHESDA, MARYLAND 20814
- --------------------------------------------------------------------------------
Introduction to the Funds
Calvert Social Investment Fund ("CSIF") and Calvert World Values Fund ("CWVF")
International Equity Fund (each a "Fund" and together, the "Funds") each seek 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. See "Investment Objectives and
Policies." Investments are selected on the basis of their ability to contribute
to the dual objectives of the Funds. Potential investments are first selected
for financial soundness and then evaluated according to a particular Fund's
social criteria.
Five different Portfolios are offered:
- - CSIF Managed Growth Portfolio (a balanced fund)
- - CSIF Bond Portfolio
- - CSIF Equity Portfolio
- - CSIF Money Market Portfolio
- - CWVF International Equity Fund
An investment in a Fund is neither insured nor guaranteed by the US Government.
There can be no assurance that the CSIF Money Market Portfolio will be
successful in maintaining a constant net asset value of $1.00 per share.
- --------------------------------------------------------------------------------
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
Funds' goals match your own. Keep this document for future reference.
Statements of Additional Information for the Funds (dated March 31, 1998) have
been filed with the Securities and Exchange Commission and are incorporated by
reference. These free Statements are available upon request: 800-368-2748.
The SEC maintains a Web site at http://www.sec.gov that contains the Statements
of Additional Information, material incorporated by reference, and other
information regarding the Funds.
- --------------------------------------------------------------------------------
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 A 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 A FUND, THE VALUE MAY
BE HIGHER OR LOWER THAN THE AMOUNT ORIGINALLY PAID.
<PAGE>
Purchase Information
CSIF Managed Growth, Bond and Equity Portfolios and CWVF International Equity
Fund offer 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 on shares
purchased after May 17, 1998 if 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. Class C Shares of CSIFBond Portfolio will be
available May 18, 1998.
- --------------------------------------------------------------------------------
To Open An Account
Call your broker, or complete and return the enclosed Account Application.
Minimum investment is $1,000 for CSIF, and $2,000 for CWVF.
- --------------------------------------------------------------------------------
HIGHLIGHTS
- --------------------------------------------------------------------------------
INVESTMENT OBJECTIVES AND POLICIES
The Funds are 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.
CSIF 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 US 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.
CSIF MANAGED GROWTH PORTFOLIO is a balanced fund which 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.
CSIF 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.
CSIF 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.
CWVF INTERNATIONAL EQUITY FUND seeks to achieve a high total return consistent
with reasonable risk, by investing primarily in a globally diversified portfolio
of equity securities.
There can be no assurance that the Funds will be successful in meeting their
investment objectives. For a further description of the Funds and discussion of
the Funds' investment techniques, see "Investment Objectives and Policies,"
"Investment Selection Process" and "Additional Investment Policies."
- --------------------------------------------------------------------------------
EXPERTISE IN THE MANAGEMENT OF THE FUNDS
The Funds' Investment Advisor is Calvert Asset Management Company, Inc.
("CAMCO"), a subsidiary of Acacia Mutual Life Insurance Company of Washington,
D.C. CAMCO manages the CSIF Money Market Portfolio, CSIFBond Portfolio, and the
fixed-income assets of the CSIF Managed Growth Portfolio. Investment Subadvisors
for the equity assets of the CSIF Managed Growth Portfolio are NCM Capital
Management Group, Inc. and Brown Capital Management, Inc. Loomis, Sayles &
Company, L.P. ("Loomis, Sayles") is the Subadvisor to the CSIF Equity Portfolio,
and Murray Johnstone International, Ltd., is the Subadvisor for the CWVF
International Equity Fund.
- --------------------------------------------------------------------------------
DIVERSIFICATION OF INVESTMENTS AND RISKS
<PAGE>
By pooling the investments of many investors with similar investment objectives,
investors have an opportunity to benefit from a broadly diversified portfolio.
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 the
Statements of Additional Information.
- --------------------------------------------------------------------------------
PURCHASE OF FUND SHARES
There is no sales charge on shares of the CSIF Money Market Portfolio. Class A
shares of the CSIF Managed Growth, Bond, and Equity Portfolios and the CWVF
International Equity Fund 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 Funds may be made by mail, bank wire, electronic
funds transfer, through the Funds' 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 the net asset value next
determined after a proper redemption request is received by the transfer agent
(subject to any applicable CDSC). Investors may redeem shares by mail or by
telephone, through brokers, or, for investors in the CSIF 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
CSIF 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. CSIF'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 and classes.
Shares have equal rights with all other shares of the same class and series as
to voting, dividends and liquidation.
CWVF is an open-end diversified management investment company organized as a
Maryland corporation on February 14, 1992. Prior to June 1, 1996, the
International Equity Fund operated under the name of Calvert World Values Global
Equity Fund. The other series of Calvert World Values Fund, Inc. is Calvert
Capital Accumulation Fund.
- --------------------------------------------------------------------------------
FUND EXPENSES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CSIF Money CSIF Managed
A. Shareholder Market Portfolio Growth Portfolio
Transaction Costs Class A Class A Class B Class C
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Maximum Sales Charge on Purchases
(as a percentage of offering price) None 4.75% None None
Maximum Contingent Deferred Sales
Charge (as a percentage of purchase
price or redemption proceeds,
as applicable) None None 5.00(1) 1.00(3)
- --------------------------------------------------------------------------------------------------------------------
B. Annual Fund Operating Expenses - Fiscal Year 1997
(as a percentage of average net assets)
Management Fees 0.50% 0.60% 0.60% 0.60%
Rule 12b-1 Service and
Distribution Fees 0.00% 0.24% 1.00% 1.00%
Other Expenses
(after expense reimbursement) 0.39% 0.30% 0.94% 0.69%
- --------------------------------------------------------------------------------------------------------------------
Total Fund Operating Expenses* 0.89% 1.14% 2.54% 2.29%
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
CSIF Bond CSIF Equity
A. Shareholder Portfolio Portfolio
Transaction Costs Class A Class B Class C Class A Class B Class C
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Maximum Sales Charge on Purchases
(as a percentage of offering price) 3.75% None None 4.75% None None
Maximum Contingent Deferred Sales
Charge (as a percentage of purchase
price or redemption proceeds,
as applicable) None 4.00%(2) 1.00%(3) None 5.00(1) 1.00(3)
- ------------------------------------------------------------------------------------------------------------------------------
B. Annual Fund Operating Expenses - Fiscal Year 1997
(as a percentage of average net assets)
Management Fees 0.55% 0.55% 0.55% 0.55% 0.55% 0.55%
Rule 12b-1 Service and
Distribution Fees 0.20% 1.00% 1.00% 0.23% 1.00% 1.00%
Other Expenses 0.44% 1.23% 0.98% 0.43% 1.01% 0.76%
- ------------------------------------------------------------------------------------------------------------------------------
Total Fund Operating Expenses* 1.19% 2.78% 2.53% 1.21% 2.56% 2.31%
</TABLE>
<TABLE>
<CAPTION>
CWVF International
Equity Fund
A. Shareholder
Transaction Costs Class A Class B Class C
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Maximum Sales Charge on Purchases
(as a percentage of offering price) 4.75% None None
Maximum Contingent Deferred Sales
Charge (as a percentage of purchase
price or redemption proceeds,
as applicable) None 5.00(1) 1.00(3)
- --------------------------------------------------------------------------------------------------
B. Annual Fund Operating Expenses - Fiscal Year 1997
(as a percentage of average net assets)
Management Fees 1.10% 1.10% 1.10%
Rule 12b-1 Service and Distribution Fees 0.25% 1.00% 1.00%
Other Expenses 0.56% 1.06% 0.81%
- --------------------------------------------------------------------------------------------------
Total Fund Operating Expenses* 1.91% 3.16% 2.91%
- --------------------------------------------------------------------------------------------------
</TABLE>
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; for all
Portfolios except the CSIF Money Market Portfolio, (3) payment of maximum
initial sales charge for Class A shares at time of purchase, and (4) payment
of maximum applicable contingent deferred sales charge for Class B and Class
C.
* Net Operating Expenses after reduction for fees paid indirectly were:
CSIF MoneyMarket - 0.87% CSIF Equity, A - 1.20%
CSIF Managed Growth - A 1.12% CSIF Equity, C - 2.30%
CSIF Managed Growth - C 2.27% CWVF International Equity, A - 1.76%
CSIFBond - 1.15% CWVF International Equity, C - 2.76%
<PAGE>
(1). 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.
(2). A contingent deferred sales charge is imposed on the proceeds of Class B
shares redeemed within 4 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 4% in the first year that
shares are held, to 3% in the second, 2% in the third year, and 1% in the fourth
year. There is no charge on redemptions of Class B shares held for more than
four years. See "Calculation of Contingent Deferred Sales Charge" below.
(3). 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."
<PAGE>
<TABLE>
<CAPTION>
1 Year 3 Years 5 Years 10 Years
<S> <C> <C> <C> <C>
CSIF Money Market Portfolio $9 $28 $49 $110
CSIF Managed Growth Portfolio
CLASS A $59 $82 $107 $180
CLASS B
Assuming a complete
redemption at end of period $77 $122 $158 $253
Assuming no redemption $26 $79 $135 $253
CLASS C
Assuming a complete
redemption at end of period $33 $72 $123 $263
Assuming no redemption $23 $72 $123 $263
CSIF Bond Portfolio
CLASS A $49 $74 $100 $176
CLASS B
Assuming a complete
redemption at end of period $69 $108 $147 $235
Assuming no redemption $28 $86 $147 $235
CLASS C
Assuming a complete
redemption at end of period $36 $79 $135 $287
Assuming no redemption $26 $79 $135 $287
CSIF Equity Portfolio
CLASS A $59 $84 $111 $187
CLASS B
Assuming a complete
redemption at end of period $77 $123 $159 $256
Assuming no redemption $26 $80 $136 $256
CLASS C
Assuming a complete
redemption at end of period $34 $72 $124 $265
Assuming no redemption $23 $72 $124 $265
CWVF International Equity Fund
CLASS A $66 $105 $146 $260
CLASS B
Assuming a complete
redemption at end of period $83 $140 $187 $317
Assuming no redemption $32 $97 $165 $317
CLASS C
Assuming a complete
redemption at end of period $40 $90 $153 $323
Assuming no redemption $29 $90 $153 $323
</TABLE>
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 may bear directly (shareholder
transaction costs) or indirectly (annual fund operating expenses)
Shareholder Transaction Costs are charges you pay when you buy or sell shares.
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.
- --------------------------------------------------------------------------------
Annual Fund Operating Expenses
are based on historical expenses, except for Other Expenses for Class B (and
Class C for CSIF Bond Portfolio) which are estimates. Management fees for CSIF
Bond have been restated to reflect a partial waiver of the fees, in effect until
<PAGE>
2/29/2000. Management Fees are paid by each Fund to CAMCO for managing the
Funds' investments and business affairs. Management fees include the Subadvisory
fees paid by CAMCO to the Subadvisors, and, for CWVF International Equity Fund,
the administrative fee paid by the Fund to Calvert Administrative Services
Company, an affiliate of CAMCO. The Management Fees for the CSIF Equity
Portfolio include a performance adjustment, which could cause the fee to be as
high as 0.90% or as low as 0.50%, depending on the Equity Portfolio's
performance. The Management fees for the CSIF Managed Growth Portfolio include a
performance adjustment which could cause the fee to be as high as 0.85% or as
low as 0.55%, depending on its performance. The Funds incur Other Expenses for
maintaining shareholder records, furnishing shareholder statements and reports,
and other services. Management Fees and Other Expenses have already been
reflected in each Fund's yield or share price and are not charged directly to
individual shareholder accounts.
If CAMCO had not reimbursed or waived fees, the current Other Expenses and Total
Fund Operating Expenses for the CSIF Money Market Portfolio would have been
0.50% and 1.00%, respectively.
The Funds' Rule 12b-1 fees include an asset-based sales charge. Thus, long-term
shareholders in a 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. (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
compensation for the sale and distribution of the securities or for services to
the Funds. See the Statements of Additional Information, "Method of
Distribution."
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
The following tables provide information about the financial history of each
Fund'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. No
Class B shares were outstanding during the periods presented. The tables have
been audited by the independent accountants, whose reports are included in the
Annual Reports to Shareholders of the Fund. The tables should be read in
conjunction with the financial statements and their related notes. The current
Annual Reports to Shareholders are incorporated by reference into the Statements
of Additional Information.
<TABLE>
<CAPTION>
Year Ended September 30,
CSIF Money Market Portfolio 1997 1996 1995
- -------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of year $ 1.00 $ 1.00 $ 1.00
- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------
Income from investment operations
Net investment income 0.48 .048 .050
Distributions from
Net investment income (0.48) (.048) (.050)
- -------------------------------------------------------------------------------------
Net asset value, end of year $ 1.00 $ 1.00 $ 1.00
Total return* 4.89% 4.88% 5.13%
- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------
Ratio to average net assets:
Net investment income 4.79% 4.77% 5.03%
Total expenses** .89% .89% .89%
Net expenses .87% .87% .87%
Expenses reimbursed and/or waived .11% .21% .18%
Net assets, end of year (in thousands) $166,111 $166,516 $153,996
- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------
Number of shares outstanding
at end of year (in thousands) 166,163 166,569 154,044
- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------
<CAPTION>
Year Ended September 30,
CSIF Money Market Portfolio 1994 1993 1992
- -------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of year $ 1.00 $ 1.00 $ 1.00
- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------
Income from investment operations
Net investment income .031 .025 .037
Distributions from
Net investment income (.031) (.025) (.037)
- -------------------------------------------------------------------------------------
Net asset value, end of year $ 1.00 $ 1.00 $ 1.00
Total return* 3.13% 2.56% 3.79%
- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------
Ratio to average net assets:
Net investment income 3.07% 2.54% 3.74%
Total expenses** N/A N/A N/A
Net expenses .87% .87% .87%
Expenses reimbursed and/or waived .18% .20% .16%
Net assets, end of year (in thousands) $143,779 $144,985 $171,340
- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------
Number of shares outstanding
at end of year (in thousands) 143,826 145,031 171,407
- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------
</TABLE>
*Total return prior to 1989 is not audited.
**Effective September 30, 1995, this ratio reflects total expenses before
reduction for fees paid indirectly; such
reductions are included in the ratio of net expenses.
N/A - Disclosure not applicable to prior periods.
<TABLE>
<CAPTION>
Year Ended September 30,
CSIF Money
Market Portfolio 1991 1990 1989 1988
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of year $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ----------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------
Income from investment operations
Net investment income .061 .076 .084 .067
Distributions from
<PAGE>
Net investment income (.061) (.076) (.084) (.067)
- ----------------------------------------------------------------------------------------------------
Net asset value, end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00
Total return* 6.32% 7.85% 6.47% 5.31%
- ----------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------
Ratio to average net assets:
Net investment income 6.12% 7.53% 8.40% 6.47%
Total expenses** N/A N/A N/A N/A
Net expenses .87% .85% .85% .84%
Expenses reimbursed and/or waived .13% .14% .17% .27%
Net assets, end of year (in thousands) $193,947 $182,148 $139,662 $81,253
- ----------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------
Number of shares outstanding
at end of year (in thousands) 194,015 182,193 139,707 81,278
- ----------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------
<CAPTION>
Class A Shares
CSIFManaged Year Ended September 30,
Growth Portfolio 1997 1996 1995 1994
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of year $ 31.35 $ 32.81 $ 28.77 $ 30.84
- ----------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------
Income from investment operations
Net investment income .83 .78 .87 .93
Net realized and unrealized
gain (loss) on investment 5.61 2.28 4.25 (1.83)
Total from investment operations 6.44 3.06 5.12 (.90)
- ----------------------------------------------------------------------------------------------------
Distributions from
Net investment income (.81) (.77) (.87) (.95)
Net realized gains (2.10) (3.75) (.21) (.23)
Total distributions (2.91) (4.52) (1.08) (1.18)
Total increase (decrease) in asset value 3.53 (1.46) 4.04 (20.8)
- ----------------------------------------------------------------------------------------------------
Net asset value, end of year $ 34.88 $ 31.35 $ 32.81 $ 28.77
Total return* 21.94% 10.27% 18.21% (2.95)%
- ----------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------
Ratio to average net assets:
Net investment income 2.57% 2.58% 2.89% 3.14%
Total expenses** 1.14% 1.28% 1.28% N/A
Net expenses 1.12% 1.26% 1.26% 1.24%
Expenses reimbursed and/or waived -- .01% .02% --
Portfolio turnover 215% 111% 114% 34%
Average commission rate paid $ .0508 $ .0489 N/A N/A
Net assets, end of year (in thousands) $675,306 $594,482 $560,981 $512,027
- ----------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------
Number of shares outstanding
at end of year (in thousands) 19,362 18,964 17,099 17,800
- ----------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Class A Shares
- ------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------
CSIF Managed Year Ended September 30,
Growth Portfolio 1993 1992 1991 1990 1989 1988
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of year $ 29.35 $ 28.42 $ 25.87 $ 27.72 $ 25.04 $ 27.44
- ------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------
Income from investment
operations
Net investment income .95 1.07 1.20 1.09 1.15 1.09
Net realized and unrealized
gain (loss) on investment 1.91 1.82 3.10 (1.85) 2.97 (1.91)
Total from investment
operations 2.86 2.89 4.30 (.76) 4.12 (.82)
- ------------------------------------------------------------------------------------------------------------------------
Distributions from
Net investment income (.95) (1.95) (1.00) (.63) (.98) (1.08)
Net realized gains (.41) (.01) (.75) (.46) (.46) (.50)
Total distributions (1.36) (1.96) (1.75) (1.09) (1.44) (1.58)
Total increase (decrease) in
asset value 1.50 .93 2.55 (1.85) 2.68 (2.40)
- ------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year $ 30.85 $ 29.35 $ 28.42 $ 25.87 $ 27.72 $ 25.04
Total return* 9.98% 10.71% 17.51% (2.87%) 17.31% (2.48%)
- ------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------
Ratio to average net assets:
Net investment income 3.25% 3.90% 4.73% 4.85% 4.49% 4.30%
Total expenses** N/A N/A N/A N/A N/A N/A
Net expenses 1.25% 1.28% 1.31% 1.30% 1.29% 1.34%
Expenses reimbursed
and/or waived -- -- -- -- -- --
Portfolio turnover 33% 14% 25% 24% 34% 46%
Average commission rate paid N/A N/A N/A N/A N/A N/A
Net assets, end of year
(in thousands) $536,170 $419,514 $329,922 $242,617$ 212,178 $171,931
Number of shares outstanding
at end of year (in thousands) 17,378 14,292 11,609 9,377 7,654 6,866
- ------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
*Total return prior to 1989 is not audited.
**Effective September 30, 1995, this ratio reflects total expenses before
reduction for fees paid indirectly; such reductions are included in the
ratio of net expenses.
N/A - Disclosure not applicable to prior periods.
<PAGE>
<TABLE>
<CAPTION>
Class C Shares
Year From Inception
Ended (March 1, 1994)
September 30, to September 30,
CSIF Managed Growth Portfolio 1997 1996 1995 1994
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value,
beginning of period $31.05 $32.60 $28.65 $30.43
- ------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------
Income from investment
operations
Net investment income .47 .46 .54 .51
Net realized and unrealized
gain(loss) on investment 5.54 2.17 4.20 (1.66)
Total from investment
operations 6.01 2.63 4.74 (1.15)
- ------------------------------------------------------------------------------------------
Distributions from
Net investment income (.44) (.43) (.58) (.63)
Net realized gains (2.10) (3.75) (.21) --
Total distributions (2.54) (4.18) (.79) (.63)
Total increase (decrease) in
asset value 3.47 1.55 3.95 (1.78)
- ------------------------------------------------------------------------------------------
Net asset value, end of period $34.52 $31.05 $32.60 $28.65
Total return* 20.56% 8.85% 16.85% (3.30%)
- ------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------
Ratio to average net assets:
Net investment income 1.42% 1.34% 1.61% 1.83%(a)
Total expenses** 2.29% 2.52% 2.51% N/A
Net expenses 2.27% 2.50% 2.50% 2.47%(a)
Expenses reimbursed
and/or waived -- .14% .42% 1.46%(a)
Portfolio turnover 215% 111% 114% 34%
Average commission rate paid $.0508 $.0489 N/A N/A
Net assets, end of period
(in thousands) $8,898 $6,715 $4,065 $1,893
Number of shares outstanding
at end of period (in thousands) 258 216 125 66
- ------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Class A Shares
Year Ended September 30,
CSIF Bond Portfolio 1997 1996 1995 1994
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value,
beginning of period $ 16.06 $ 16.34 $ 15.49 $ 17.77
- ------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------
Income from investment
operations
Net investment income .96 .92 .96 .94
Net realized and unrealized gain
(loss) on investments .58 (.29) .91 (1.81)
Total from investment
operations 1.54 .63 1.87 (.87)
- ------------------------------------------------------------------------------------------
Distributions from
Net investment income (.96) (.91) (.93) (.94)
Net realized gains -- -- (.06) (.47)
Tax return of capital -- -- (.03) --
Total distributions (.96) (.91) (1.02) (1.41)
Total increase (decrease) in
asset value .58 (.28) .85 (2.28)
- ------------------------------------------------------------------------------------------
Net asset value, end of period $ 16.64 $ 16.06 $ 16.34 $ 15.49
Total return* 9.89% 3.96% 12.57% (5.18%)
- ------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------
Ratio to average net assets:
Net investment income 5.85% 5.60% 6.04% 5.64%
Total expenses** 1.23% 1.29% 1.24% N/A
Net expenses 1.19% 1.26% 1.22% 1.10%
Portfolio turnover 319% 22% 29% 19%
Net assets, end of period
(in thousands) $59,656 $62,259 $62,929 $61,573
Number of shares outstanding
at end of period (in thousands) 3,585 3,876 3,850 3,976
- ------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------
</TABLE>
*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.
**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
N/A - Disclosure not applicable to prior periods.
<PAGE>
<TABLE>
<CAPTION>
Class A Shares
Year Ended September 30,
CSIFBond Portfolio 1993 1992 1991
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of period $ 17.05 $ 16.48 $ 15.34
- ------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------
Income from investment operations
Net investment income 1.08 1.15 1.21
Net realized and unrealized gain
(loss) on investments .85 .78 1.15
Total from investment operations 1.93 1.93 2.36
- ------------------------------------------------------------------------------------------
Distributions from
Net investment income (1.08) (1.15) (1.21)
Net realized gains (.13) (.21) (.01)
Tax return of capital -- -- --
Total distributions (1.21) (1.36) (1.22)
Total increase (decrease) in
asset value .72 .57 1.14
- ------------------------------------------------------------------------------------------
Net asset value, end of period $ 17.77 $ 17.05 $ 16.48
Total return* 11.89% 12.29% 15.95%
- ------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------
Ratio to average net assets:
Net investment income 6.33% 6.90% 7.63%
Total expenses** N/A N/A N/A
Net expenses .79% .75% .77%
Expenses reimbursed and/or waived .20% .24% .27%
Portfolio turnover 28% 29% 24%
Net assets, end of period (in thousands) $67,134 $50,572 $33,259
Number of shares outstanding
at end of period (in thousands) 3,778 2,965 2,018
- ------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Class A Shares
Year Ended September 30,
CSIFBond Portfolio 1990 1989 1988
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of period $ 15.71 $ 15.43 $ 14.81
- ------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------
Income from investment operations
Net investment income 1.24 1.31 1.16
Net realized and unrealized gain
(loss) on investments (.32) .30 .62
Total from investment operations .92 1.61 1.78
- ------------------------------------------------------------------------------------------
Distributions from
Net investment income (1.24) (1.29) (1.16)
Net realized gains (.05) (.04) --
Tax return of capital -- -- --
Total distributions (1.29) (1.33) (1.16)
Total increase (decrease) in
asset value (.37) .28 .62
- ------------------------------------------------------------------------------------------
Net asset value, end of period $ 15.34 $ 15.71 $ 15.43
- ------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------
Total return* 6.09% 10.93% 12.32%
- ------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------
Ratio to average net assets:
Net investment income 8.02% 8.53% 8.14%
Total expenses** N/A N/A N/A
Net expenses .65% .17% --
Expenses reimbursed and/or waived .45% .92% 1.56%
Portfolio turnover 22% 50% 27%
Net assets, end of period (in thousands) $23,298 $12,792 $5,235
Number of shares outstanding
at end of period (in thousands) 1,519 814 339
- ------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------
</TABLE>
* 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.
** Effective September 30, 1995, this ratio reflects total expenses before
reduction for fees paid indirectly; such reductions are included in the
ratio of net expenses.
N/A - Disclosure not applicable to prior periods.
<PAGE>
<TABLE>
<CAPTION>
Class A Shares
Year Ended September 30,
CSIF Equity Portfolio 1997 1996 1995 1994
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 22.54 $ 21.12 $ 20.13 $ 21.43
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
Income from investment operations
Net investment income -- .03 .06 .13
Net realized and unrealized gain
(loss)on investments 6.73 3.26 2.22 (1.04)
Total from investment operations 6.73 3.29 2.28 (.91)
- ---------------------------------------------------------------------------------------------------------
Distributions from
Net investment income (.01) (.06) (.04) (.28)
Net realized gains (1.49) (1.81) (1.25) (.11)
Total distributions (1.50) (1.87) (1.29) (.39)
Total increase (decrease) in
net asset value 5.23 1.42 .99 (1.30)
- ---------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 27.77 $ 22.54 $ 21.12 $ 20.13
Total return* 31.34% 16.62% 12.43% (4.33%)
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
Ratio to average net assets:
Net investment income .03% .15% .32% .65%
Total expenses** 1.21% 1.29% 1.38% N/A
Net expenses 1.20% 1.27% 1.36% 1.27%
Expenses reimbursed and/or waived -- -- -- --
Portfolio turnover 93% 118% 35% 94%
Average commission rate paid $ .0574 $ .0556 N/A N/A
Net assets, end of period (in thousands) $147,002 $101,344 $90,951 $92,970
Number of shares outstanding
at end of period (in thousands) 5,294 4,496 4,307 4,620
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Class A Shares
Year Ended September 30,
CSIF Equity Portfolio 1993 1992 1991 1990 1989 1988
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 20.03 $ 18.89 $ 15.86 $ 18.07 $ 14.58 $ 15.33
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
Income from investment operations
Net investment income .21 .17 .44 .32 .40 .87
Net realized and unrealized gain
(loss)on investments 1.36 1.20 2.96 (2.24) 3.40 (1.53)
Total from investment operations 1.57 1.37 3.40 (1.92) 3.80 (.66)
- ----------------------------------------------------------------------------------------------------------------------------
Distributions from
Net investment income (.17) (.23) (.37) (.24) (.31) (.08)
Net realized gains -- -- -- (.05) -- (.01)
Total distributions (.17) (.23) (.37) (.29) (.31) (.09)
Total increase (decrease) in 1.40 1.14 3.03 (2.21) 3.49 (.75)
net asset value $ 21.43 $ 20.03 $ 18.89 $ 15.86 $ 18.07 $ 14.58
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period
Total return* 7.82% 7.36% 21.88% (10.80%) 26.69% (4.26%)
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
Ratio to average net assets:
Net investment income 1.06% 1.02% 1.94% 2.64% 2.48% 2.85%
Total expenses** N/A N/A N/A N/A N/A N/A
Net expenses 1.13% 1.17% 1.04% .78% .21% N/A
Expenses reimbursed and/or waived -- -- .18% .50% 1.17% 2.49%
Portfolio turnover 43% 24% 27% 31% 8% 23%
Average commission rate paid N/A N/A N/A N/A N/A N/A
Net assets, end of period (in thousands) $85,042 $64,629 $42,642 $22,212 $7,927 $1,711
Number of shares outstanding
at end of period (in thousands) 3,968 3,226 2,258 1,401 439 117
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
*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.
**Effective September 30, 1995, this ratio reflects total expenses before
reduction for fees paid indirectly; such reductions are included in the
ratio of net expenses.
N/A - Disclosure not applicable to prior periods.
<PAGE>
<TABLE>
<CAPTION>
Class C Shares
From Inception
(March 1, 1994)
Year Ended September 30, to September 30,
CSIF Equity Portfolio 1997 1996 1995 1994
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $21.71 $20.66 $19.98 $22.12
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
Income from investment operations
Net investment income (.05) (.16) (.03) (.06)
Net realized and unrealized gain
(loss)on investments 6.21 3.04 2.05 (2.08)
Total from investment operations 6.16 2.88 2.02 (2.14)
- --------------------------------------------------------------------------------------------------------------
Distributions from
Net investment income (.01) (.02) (.09) --
Net realized gains (1.49) (1.81) (1.25) --
Total distributions (1.50) (1.83) (1.34) --
Total increase (decrease) in
net asset value 4.66 1.05 .68 (2.14)
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
Net asset value, end of period $26.37 $21.71 $20.66 $19.98
Total return* 29.84% 14.85% 11.16% (9.14%)
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
Ratio to average net assets:
Net investment income (1.08%) (1.42%) (.84%) (1.06%)(a)
Total expenses** 2.31% 2.86% 2.51% N/A
Net expenses 2.30% 2.85% 2.50% 2.75%(a)
Expenses reimbursed and/or waived -- -- 1.07% 4.60%(a)
Portfolio turnover 93% 118% 35% 94%
Average commission rate paid $.0574 $.0556 N/A N/A
Net assets, end of period (in thousands) $6,249 $2,996 $1,802 $ 670
Number of shares outstanding
at end of period (in thousands) 237 138 87 34
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Class A Shares
Year Ended September 30,
CWVF International Equity 1997 1996 1995 1994
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of year $ 18.62 $ 17.62 $ 17.99 $ 16.35
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
Income from investment operations
Net investment income .10 .04 .11 --
Net realized and unrealized
gain (loss) 3.81 1.53 .38 2.14
Total from investment operations 3.91 1.57 .49 2.14
- ---------------------------------------------------------------------------------------------------------
Distributions from:
Net investment income (.05) (.13) -- (.03)
Excess of net
investment income -- -- -- (.04)
Net realized gains (.42) (.44) (.86) (.43)
Total distributions (.47) (.57) (.86) (.50)
Total increase (decrease) in net asset value 3.44 1.00 (.37) 1.64
- ---------------------------------------------------------------------------------------------------------
Net asset value, end of year $ 22.06 $ 18.62 $ 17.62 $ 17.99
Total return* 21.44% 9.22% 3.19% 13.44%
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
Ratio to average net assets:
Net investment income (loss) .51% .23% .68% (.04%)
Total expenses** 1.91% 1.95% 1.93% N/A
Net expenses 1.76% 1.81% 1.79% 1.96%
Expenses reimbursed and/or waived -- -- -- .04%
Portfolio turnover 58% 96% 73% 78%
Average commission rate paid $ .0222 $ .0339 N/A N/A
Net assets, end of year (in thousands) $225,169 $194,032 $191,586 $175,543
Number of shares outstanding at
end of year (in thousands) 10,207 10,422 10,876 9,755
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
</TABLE>
*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.
**Effective September 30, 1995, this ratio reflects total expenses before
reduction for fees paid indirectly; such reductions are included in the
ratio of net expenses.
(a) Annualized
N/A - Disclosure not applicable to prior periods.
<PAGE>
<TABLE>
<CAPTION>
Class C Shares
From Inception
(March 1, 1994)
Year Ended Sept. 30, through Sept. 30,
CWVF International Equity 1997 1996 1995 1994
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $18.20 $17.28 $17.86 $18.24
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
Income from investment operations
Net investment income (.07) (.15) (.05) (.06)
Net realized and unrealized gain
(loss) on investments 3.68 1.51 .32 (.32)
Total from investment operations 3.61 1.36 .27 (.38)
- -------------------------------------------------------------------------------------------------------------
Distributions from:
Net realized gains (.42) (.44) (.85) --
Total distributions (.42) (.44) (.85) --
Total increase (decrease) in net asset value 3.19 .92 (.58) (.38)
- -------------------------------------------------------------------------------------------------------------
Net asset value, ending $21.39 $18.20 $17.28 $17.86
Total return* 20.22% 8.07% 1.95% (1.27%)
Ratio to average net assets:
Net investment income (loss) (.47%) (.88%) (.47%) (1.16%)(a)
Total expenses** 2.91% 3.08% 3.12% N/A
Net expenses 2.76% 2.93% 2.99% 3.32%(a)
Expenses reimbursed and/or waived -- -- .13% .50%(a)
Portfolio turnover 58% 96% 73% 78%
Average commission rate paid $.0222 $.0339 N/A N/A
Net assets, end of period (in thousands) $8,799 $6,779 $6,061 $3,620
Number of shares outstanding
at ending (in thousands) 411 373 351 203
- -------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------
</TABLE>
*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.
**Effective September 30, 1995, this ratio reflects total expenses before
reduction for fees paid indirectly; such reductions are included in the
ratio of net expenses.
(a) Annualized
N/A - Disclosure not applicable to prior periods.
<PAGE>
<TABLE>
<CAPTION>
Class A Shares
From Inception
(July 2, 1992)
Year Ended Sept. 30, to September 30,
CWVF International Equity 1993 1992
- ---------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value, beginning of period $14.31 $15.00
- ---------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------
Income from investment operations
Net investment income .08 .02
Net realized and unrealized gain (loss) 2.04 (.71)
Total from investment operations 2.12 (.69)
- ---------------------------------------------------------------------------------------
DISTRIBUTIONS FROM:
Net investment income (.05) --
Excess of net
investment income -- --
Net realized gains (.03) --
Total distributions (.08) --
Total increase (decrease) in net asset value 2.04 (.69)
- ---------------------------------------------------------------------------------------
Net asset value, ending $16.35 $14.31
Total return* 14.95% (4.60%)
Ratio to average net assets:
Net investment income (loss) .80% 1.23%(a)
Total expenses** N/A N/A
Net expenses 1.50% 1.01%(a)
Expenses reimbursed and/or waived .20% .60%(a)
Portfolio turnover 35% --
Average commission rate paid N/A N/A
Net assets, end of period (in thousands) $54,280 $8,440
Number of shares outstanding
at ending (in thousands) 3,319 590
- ---------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------
</TABLE>
<PAGE>
INVESTMENT OBJECTIVES AND POLICIES
- --------------------------------------------------------------------------------
The Funds are 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
CSIF Managed Growth Portfolio is designed for long-term investment through a
balanced portfolio. The CSIF Money Market Portfolio is designed for short-term
cash management and stability of principal. The CSIF Bond Portfolio is designed
for current income and preservation of capital. The CSIF Equity Portfolio and
CWVF International Equity Fund are designed for capital growth. The net asset
value of each Portfolio, except for CSIF Money MarketPortfolio, will fluctuate
in response to changes in market conditions and the value of portfolio
investments.
- --------------------------------------------------------------------------------
CSIFMoney 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 brokers 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.
The Money Market Portfolio invests only in high grade, short-term money market
instruments which may include: obligations issued or guaranteed as to principal
by the United States Government, its agencies and instrumentalities; US
dollar-denominated certificates of deposit, time deposits and bankers'
acceptances of US 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 investment is rated A-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.
- --------------------------------------------------------------------------------
CSIF 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. The portfolio is a "balanced"
portfolio, and intends to invest approximately 55% to 60% of its assets in
equities and 40% to 45% in fixed income securities. See "Portfolio Managers" for
more information. Generally, equity investments are selected by the subadvisors,
subject to direction and control by CAMCO and the CSIF Board of Trustees. CAMCO
manages the Portfolio's fixed-income assets and determines the mix for the
Managed Growth Portfolio depending upon its view of market conditions and the
economic outlook.
CSIF 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 US 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. The Portfolio may purchase lower-rated obligations
(those rated below BBB, which are considered noninvestment-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 CAMCO under
the supervision of the CSIF Board of Trustees. The Managed Growth Portfolio does
not currently hold or intend to invest more than 5% of its net assets in
noninvestment-grade securities. See the Statement of Additional Information
("SAI") for additional information concerning bond ratings.
- --------------------------------------------------------------------------------
CSIFBond 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
securities may be long-term, 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 net
assets in publicly-traded straight debt securities which have an investment
grade rating of A or
<PAGE>
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 US 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, in convertible debt securities,
convertible preferred and preferred stocks, or other securities. The Bond
Portfolio does not currently hold or intend to invest more than 5%
(approximately) of its net assets in noninvestment-grade securities. See the SAI
for additional information concerning bond ratings.
- --------------------------------------------------------------------------------
CSIF 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.
CSIF 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, this Portfolio may invest
up to 20% of the value of its assets in money market instruments, including:
obligations of the US 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 purchases subject to repurchase
agreements with recognized securities brokers 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 noninvestment-grade debt securities.
<PAGE>
ADDITIONAL INVESTMENT POLICIES
- --------------------------------------------------------------------------------
Calvert Social Investment Fund
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 CSIF in the aggregate,
purchase more than 10% of the voting securities of any issuer.
CSIF 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 Subadvisor judges market conditions incorrectly or employs a strategy
that does not correlate well with a 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 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 Portfolios' 15% restriction on illiquid securities. See the CSIF SAI for
more detail about these strategies.
CSIF may engage in repurchase agreements and reverse repurchase agreements. In a
repurchase agreement, the Portfolio buys a security subject to the right and
obligation to sell it back at a higher price. In order to minimize any risk
involved, the Portfolio engages in such transactions only with recognized
securities brokers 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 Portfolio sells a
security subject to the right and obligation to buy it back at a higher price.
The Portfolio then invests the proceeds from the transaction in another
obligation in which it is authorized to invest. For reverse repurchase
agreements, the Portfolio maintains liquid assets equal in value to the
repurchase price in a segregated account.
Each CSIF 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 Managed Growth and Bond Portfolio's fixed-income investment strategies
caused them to have a relatively high portfolio turnover compared to other
portfolios. A portfolio with high turnover may incur higher transaction costs,
such as custodian and settlement fees. During fiscal 1997, brokerage commission
expenses remained relatively level even though turnover increased significantly,
since the fixed income investments are traded on a spread, rather than a
commission basis.
- --------------------------------------------------------------------------------
CSIF has adopted the following operating (i.e., non-fundamental) investment
policies which may be changed by the Board of Trustees without shareholder
approval:
CSIF Managed Growth, Bond, and Equity Portfolios may not purchase or hold
illiquid securities if more than 15% of the value of that Portfolio's net assets
would be invested in such securities. CSIFMoney Market illiquid securities
limitation is 10% of net assets.
Each CSIF Portfolio may invest up to 25% of its assets in the securities of
foreign issuers. The Portfolios may purchase foreign securities directly, on
foreign markets, or those represented by American Depositary Receipts ("ADRs"),
or other receipts evidencing ownership of foreign securities, such as
International Depository Receipts and Global Depositary Receipts. ADRs are US
dollar-denominated and traded in the US on exchanges or over the counter.
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 commissions and
custodial costs are generally higher than for US investments. By investing in
ADRs rather than directly in foreign issuers' stock, the Portfolios 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 US dollar-denominated
instruments.
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CWVF International Equity Fund
CWVF International Equity seeks to provide a high total return consistent with
reasonable risk by investing primarily in a globally diversified portfolio of
equity securities. All investments are screened for financial and social
criteria. There is, of course, no assurance that the Fund will be successful in
meeting its objective.
<PAGE>
Under normal circumstances, International Equity will invest at least 65% of its
assets in equity securities. International Equity will invest primarily in
common stocks of established foreign companies believed by the Subadvisor to
have potential for capital growth, income or both. Companies are considered
established if their securities are traded on a recognized stock exchange.
However, International Equity may invest in any other type of security
including, but not limited to, convertible securities, preferred stocks, bonds,
notes and other debt securities of companies, (including Euro-currency
instruments and securities) or of any international agency (such as the Asian
Development Bank or Inter-American Development Bank) or obligations of domestic
or foreign governments and their political subdivisions, and in foreign currency
transactions. International Equity may invest in American or European Depositary
Receipts ("ADRs" or "EDRs"). See the Statement of Additional Information.
International Equity may establish and maintain reserves for temporary defensive
purposes or to enable it to take advantage of buying opportunities. Its reserves
may be invested in domestic as well as foreign short-term money market
instruments including, but not limited to, US and foreign government and agency
obligations, and obligations of supranational entities, certificates of deposit,
bankers' acceptances, time deposits, commercial paper, short-term corporate debt
securities and repurchase agreements. Any money market instruments will be rated
at least A-2/P-2 or better by a nationally recognized statistical rating
organization such as Standard and Poor's or Moody's, or, if unrated, determined
by the Advisor or Subadvisor to be of equivalent credit quality. CWVF
International Equity may also engage in certain options transactions, and enter
into futures contracts and related options for hedging purposes.
Under normal circumstances, CWVF International Equity will invest at least 65%
of its assets in the securities of issuers in no less than three countries,
other than the USA. CWVF International Equity makes investments in various
countries. Under normal circumstances, International Equity may, from time to
time, have more than 25% of its assets invested in any major industrial or
developed country which in the view of the Subadvisor poses no unique investment
risk. The Subadvisor considers an investment in a given foreign country to have
"no unique investment risk" if International Equity's investment in that country
is not disproportionate to the relative size of the country's market versus the
Morgan Stanley Capital International Europe-Far East-Asia (EFEA) or World Index
or other comparable index, and if the capital markets in that country are
mature, and of sufficient liquidity and depth. Under exceptional economic or
market conditions, International Equity may invest substantially all of its
assets in only one or two countries, or in US government obligations. As an
operating policy, CWVF International Equity will limit its investment in
securities of US issuers, excluding Special Equities and High Social Impact
Investments, to 5% of its net assets.
In determining the appropriate distribution of investments among various
countries and geographic regions, the Subadvisor ordinarily will consider the
following factors: prospects for relative economic growth among foreign
countries; expected levels of inflation; relative price levels of the various
capital markets; government policies influencing business conditions; the
outlook for currency relationships and the range of individual investment
opportunities available to the global investor. International Equity may invest
up to 30% of its net assets in developing countries, which involve exposure to
economic structures that are generally less diverse and mature than in the
United States, and to political systems which may be less stable. A country is
considered to be a developing country if it is not included in the Morgan
Stanley Capital International World Index.
CWVF International Equity may may invest up to 35% of its net assets in debt
securities excluding money market instruments. Of this, at least 30% will be of
the highest credit quality available (rated AAA or Aaa by Standard & Poor's
("S&P") or Moody's, respectively, or if not rated by S&P or Moody's, then
determined by the Subadvisor to be of equivalent credit quality). The remaining
5% of Fund assets that may be invested in debt securities may be rated lower
than AAA, although the Subadvisor does not intended to purchase any bonds rated
lower than AAA unless the instrument provides an opportunity to invest in an
attractive company in which an equity investment is not currently available or
desirable. All fixed income instruments are subject to interest-rate risk; that
is, when market interest rates rise, the current principal value of a bond will
decline.
CWVF International Equity may write covered call options and purchase call and
put options on securities and security indices, and may write secured put
options and enter into option transactions on foreign currency. It may also
engage in transactions in financial futures contract and related options for
hedging purposes, and invest in warrants, stock rights and repurchase
agreements. These investment techniques and the related risks are described in
more detail in the Statement of Additional Information.
Options on foreign currencies will be covered by securities denominated in that
currency. Options on securities indices will be covered by securities that
substantially replicate the movement of the index. CWVF International Equity may
not write options on more than 50% of its total assets. Management presently
intends to cease writing options in and as long as 25% of such total assets are
subject to outstanding options contracts. CWVF International Equity may invest
up to an aggregate of 5% of its total assets in exchange-traded or
over-the-counter call and put options on securities and securities indices and
foreign currencies. Purchases of such options may be made for the purpose of
hedging against changes in the market value of the underlying securities or
foreign currencies.
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<PAGE>
Lending portfolio securities
CWVF International Equity may lend its portfolio securities to member firms of
the New York Stock Exchange and commercial banks with assets of one billion
dollars or more, provided the value of the securities loaned will not exceed 10%
of assets. Any such loans must be secured continuously in the form of cash or
cash equivalents such as US Treasury bills; the amount of the collateral must on
a current basis equal or exceed the market value of the loaned securities, and
CWVF International Equity must be able to terminate such loans upon notice at
any time. International Equity will exercise its right to terminate a securities
loan in order to preserve its right to vote upon matters of importance affecting
holders of the securities.
The advantage of such loans is that CWVF International Equity continues to
receive the equivalent of the interest earned or dividends paid by the issuers
on the loaned securities while at the same time earning interest on the cash or
equivalent collateral.
Securities loans are usually made to broker/dealers and other financial
institutions to facilitate their delivery of such securities. As with any
extension of credit, there may be risks of delay in recovery and possibly loss
of rights in the loaned securities should the borrower of the loaned securities
fail financially. However, International Equity will make loans of its portfolio
securities only to those firms the Advisor or Subadvisor deems creditworthy and
only on such terms the Advisor or Subadvisor believes should compensate for such
risk. On termination of the loan the borrower is obligated to return the
securities. International Equity will realize any gain or loss in the market
value of the securities during the loan period and may pay reasonable custodial
fees in connection with the loan.
International Equity Fund's investment objective and those policies set forth as
fundamental investment restrictions may not be changed without shareholder
approval.
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Risk Factors - CWVF International Equity
An investment in International Equity is subject to various risks. International
Equity's use of certain investment techniques, such as foreign currency options,
involves special risks. See "Investment Techniques and Related Risks."
There are substantial and different risks involved in investing in foreign
securities. You should consider these risks carefully. For example, there is
generally less publicly available information about foreign companies than is
available about companies in the US Foreign companies are not subject to uniform
audit and financial reporting standards, practices and requirements comparable
to those in the US.
Foreign securities involve currency risks. The US dollar value of a foreign
security tends to decrease when the value of the dollar rises against the
foreign currency in which the security is denominated and tends to increase when
the value of the dollar falls against such currency. Fluctuations in exchange
rates may also affect the earning power and asset value of the foreign entity
issuing the security. Dividend and interest payments may be returned to the
country of origin, based on the exchange rate at the time of disbursement, and
restrictions on capital flows may be imposed. Losses and other expenses may be
incurred in converting between various currencies in connection with purchases
and sales of foreign securities.
Foreign stock markets are generally not as developed or efficient as those in
the US. In most foreign markets volume and liquidity are less than in the US
and, at times, volatility of price can be greater than that in the US. Fixed
commissions on foreign stock exchanges are generally higher than the negotiated
commissions on US exchanges. There is generally less government supervision and
regulation of foreign stock exchanges, brokers and companies than in the US.
There is also the possibility of adverse changes in investment or exchange
control regulations, expropriation or confiscatory taxation, limitations on the
removal of funds or other assets, political or social instability, or diplomatic
developments which could adversely affect investments, assets or securities
transactions of International Equity in some foreign countries. CWVF
International Equity is not aware of any investment or exchange control
regulations which might substantially impair the operations of CWVF
International Equity as described, although this could change at any time.
The dividends and interest payable on certain of International Equity's foreign
securities may be subject to foreign withholding taxes, thus reducing the net
amount available for distribution to International Equity shareholders. The
expense ratio of CWVF International Equity can be expected to be higher than
those of investment companies investing only in domestic securities since the
costs of operations are higher.
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INVESTMENT SELECTION PROCESS
- --------------------------------------------------------------------------------
Investments are selected on the basis of their ability to contribute to the dual
objectives of financial soundness and social criteria.
<PAGE>
Potential investments for a Fund are first screened for financial soundness and
then evaluated according to that 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 its criteria.
With respect to government securities, CSIF invests primarily in debt
obligations issued or guaranteed by agencies or instrumentalities of the US
Government whose purposes further or are compatible with CSIF's social criteria,
such as obligations of the Student Loan Marketing Association, rather than
general obligations of the US Government, such as Treasury securities.
Although each Fund's social criteria and consideration tend to limit the
availability of investment opportunities more than is customary with other
investment companies, CAMCO and the Subadvisors of the Funds believe there are
sufficient investment opportunities to permit full investment among issuers
which satisfy each Fund's investment and social objectives.
The selection of an organization for investment by a Portfolio does not
constitute endorsement or validation by each Fund, nor does the exclusion of an
organization necessarily reflect failure to satisfy each Fund's social criteria.
Investors in each Fund are invited to send a brief description of companies they
believe might be suitable for investment.
- --------------------------------------------------------------------------------
All Investments are selected with a concern for the social impact of each
investment
CALVERT SOCIAL INVESTMENT FUND
Calvert Social Investment 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.
CSIF has developed the following criteria for the selection of organizations in
which it invests. CSIF 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 CAMCO and CSIF's
Subadvisors.
Given these considerations, CSIF 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, CSIF 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, CSIF 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, CSIF 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, CSIF looks for companies with an above
average commitment to community affairs and charitable giving.
CSIF 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.
CSIF 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.
CSIF 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.
<PAGE>
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CALVERT WORLD VALUES INTERNATIONAL EQUITY FUND
CWVF International Equity carefully reviews company policies and behavior
regarding social issues important to global quality of life.
CWVF International Equity currently observes the following operating policies
which may be changed by its Board of Directors without shareholder approval:
1. It actively seeks to invest in companies that achieve excellence in both
financial return and environmental soundness, selecting issuers
that take positive steps toward preserving and enhancing our
natural environment through their operations and products, and avoiding
companies with poor environmental records;
2. CWVF International Equity seeks to invest in companies with positive labor
practices. We consider the International Labor Organization's basic
conventions on worker rights as a guideline for our labor criteria.
International Equity avoids investing in companies that
demonstrate a pattern of engaging in forced, compulsory, or child labor. In
addition, we seek to invest in companies that hire and promote women and
ethnic minorities; respect the right to form unions; comply, at a
minimum, with domestic hour and wage laws; and provide good health and
safety standards;
3. International Equity will not invest in issuers which the Advisor or
Subadvisor ascertains contribute to human rights abuses in other
countries;
4. It will not invest in producers of nuclear power or nuclear weapons, or
companies with more than 10% of revenues derived from the production
or sale of weapons systems; and
5. It will not invest in companies which derive more than 10% of revenues from
the production of alcohol or tobacco products, and actively seeks to
invest in companies whose products or services improve the quality of or
access to health care, including public health and preventative medicine.
CWVF International Equity believes that there are long-term benefits inherent in
an investment philosophy that demonstrates concern for the environment, human
rights, economic priorities, and international relations. 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 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. CWVF International Equity believes 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.
The spirit of Calvert World Values International Equity Fund's social vision is
similar to Calvert Social Investment Fund, but the application of the social
analysis is significantly different. International investing brings unique
challenges in terms of corporate disclosure, regulatory structures,
environmental standards, and differing national and cultural priorities. Due to
these factors, the CWVF social investment standards are less stringent than
those of CSIF. CWVF may invest in companies that operate in countries with poor
human rights records if we believe the companies are making a positive
contribution.
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Special Equities and Private Placements - CSIF and International Equity
Due to the particular social objective of the Funds, opportunities may exist to
promote especially
promising approaches to social goals through privately placed investments. The
Special Equities Committee of each Fund's Board identifies, evaluates, and
selects certain of these investments, subject to ratification by the Boards. The
private placement investments undertaken by the Funds, 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. Investments in private placements and other
securities for which market quotations are not readily available are valued
under the direction and control of the Boards.
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High Social Impact Investments - CSIF and International Equity
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 applicable CSIFPortfolio's
assets, and less than 3% of CWVF International Equity's assets. Such securities
are typically illiquid and unrated and generally considered noninvestment-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
<PAGE>
risk can be reduced, although there can be no assurance that losses will not
occur. The High Social Impact Investments Committee of the Boards identifies,
evaluates, selects and values these investments, subject to ratification by the
Boards.
<PAGE>
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 each Portfolio's performance is contained
in its Annual Report to Shareholders, which may be obtained without charge.
- --------------------------------------------------------------------------------
CSIF Money Market Portfolio
The Money Market Portfolio may advertise "yield" and "effective yield." The
"yield" refers to the actual income generated by an investment 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.
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CSIF Bond Portfolio
Yield measures the Bond Portfolio's current investment performance, that is, the
rate of income on its portfolio investments divided by the share price. 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 on the last
day of that period. Yields are calculated according to accounting methods that
are standardized for all stock and bond funds.
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CSIF Managed Growth, Bond, Equity and CWVF International 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 usually will
include the effect of paying the sales charge. 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.
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FUND MANAGEMENT
- --------------------------------------------------------------------------------
Each Fund is not required to hold annual shareholder meetings, but special
meetings may be called for certain purposes such as electing Trustees or
Directors, changing fundamental policies, or approving a management contract. As
a shareholder, you receive one vote for each share you own. Matters affecting
classes differently, such as Distribution Plans, will be voted on separately by
the affected class(es).
Calvert Social Investment Fund
The Board of Trustees supervises CSIF's activities and reviews its contracts
with companies that provide it with services. CSIF is an open-end
diversified management investment company, organized as a Massachusetts business
trust on December 14, 1981.
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Board of Trustees - Calvert Social Investment Fund
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
<PAGE>
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, Vancouver, British Columbia, 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
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Calvert Social Investment Fund Advisory Council
The Advisory Council is a resource to the CSIF 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 Mediation Service
<PAGE>
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 CSIF's Board of Trustees, serves as an ex officio
member of the Advisory Council.
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Calvert World Values International Equity Fund
The Board of Directors supervises CWVF's activities and reviews its contracts
with companies that provide CWVF with services.
CWVF is an open-end diversified management investment company organized as a
Maryland corporation on February 14, 1992. Prior to June 1, 1996,
International Equity operated under the name of Calvert World Values Global
Equity Fund. The other series of Calvert World Values Fund, Inc. is Calvert
Capital Accumulation Fund.
Board of Directors - Calvert World Values Fund, Inc.
JOHN G. GUFFEY, JR.
Vice Chair of the CWVF Board of Directors
Co-Chair, Calvert Social Investment Foundation
Treasurer and Director, Silby, Guffey & Co., Inc.
BARBARA J. KRUMSIEK
Co-Chair of the CWVF Board of Directors
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
RUSTUM ROY
Evan Pugh Professor of Solid State Geochemistry, Pennsylvania State University
D. WAYNE SILBY
President, Secretary, and Director, Silby, Guffey & Co., Inc.
Co-Chair of the CWVF Board of Directors
TESSA TENNANT
Green and ethical investing Manager, National Provident Investment Managers Ltd.
MUHAMMAD YUNUS
Managing Director, Grameen Bank, Bangladesh
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Calvert Asset Management Company, Inc. serves as Advisor to the Funds.
Calvert Asset Management Company, Inc. ("CAMCO") is each Fund's investment
advisor. CAMCO provides the Funds with investment supervision and management,
administrative services and office space; furnishes executive and other
personnel to the Funds; and pays the salaries and fees of all Trustees/Directors
who are employees of CAMCO or its affiliates. CAMCO may also assume and pay
certain advertising and promotional expenses of the Funds and reserves the right
to compensate broker/dealers in return for their promotional or administrative
services.
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<PAGE>
Calvert Group is one of the largest investment management firms in the
Washington, D.C. area.
Calvert Group, Ltd., parent of CAMCO, each Fund's shareholder servicing agent,
and distributor, is a subsidiary of Acacia Mutual Life Insurance Company of
Washington, D.C. Calvert Group is one of the largest investment management firms
in the Washington, D.C. area. Calvert Group, Ltd. and its subsidiaries are
located at 4550 Montgomery Avenue, Suite 1000N, Bethesda, Maryland 20814. As of
December 31, 1997, Calvert Group managed and administered assets of over $5
billion and more than 200,000 shareholder and depositor accounts.
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Portfolio Managers
CSIF Managed Growth Portfolio
The Managed Growth Portfolio is managed by multiple investment subadvisors. 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.
CAMCO manages the fixed-income portion of the Portfolio and has retained NCM
Capital Management Group, Inc. ("NCM") and Brown Capital Management, Inc.
("Brown") as subadvisors for the equity portion of the Portfolio.
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CAMCO
CAMCO utilizes a team approach to the management of the fixed-income assets of
the Managed Growth Portfolio. CAMCO has actively managed these assets since July
1995. Prior to this, the fixed-income assets were managed by US Trust as a
Subadvisor with CAMCO providing oversight. Reno J. Martini, Senior Vice
President and Chief Investment Officer, heads this team and oversees the
management of all Calvert portfolios for CAMCO. Mr. Martini has over 19 years of
experience in the securities industry and has been the head of the asset
management team since 1985.
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NCM Capital Management Group, Inc.
NCM Capital Management Group, Inc. has managed a part of the equity portion of
the Managed Growth Portfolio since 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. Maceo K.
Sloan, CFA, FLMI, is the Chairman, President, Chief Executive Officer, and Chief
Investment Officer. 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 several members, headed by Maceo K.
Sloan and Clifford D. Mpare. 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 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.
- --------------------------------------------------------------------------------
Brown Capital Management, Inc.
Brown Capital Management, Inc. of 809 Cathedral Street, Baltimore, Maryland, has
managed part of the equity portion of the Managed Growth Portfolio since
September 30, 1996. Brown Capital Management, Inc. 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 market, and have relatively low price-earnings ratios.
The firm concentrates on mid-/large-cap growth stocks.
<PAGE>
Asset management by Brown Capital Management, Inc. is by a team headed by Eddie
C. Brown. Eddie C. Brown, Portfolio Manager, is founder and President of Brown
Capital Management. He has over 23 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. He is a professionally-designated
Chartered Financial Analyst and Chartered Investment Counselor, and an inductee
into the "Wall Street Week Hall of Fame," and a member of The President's
Roundtable.
- --------------------------------------------------------------------------------
CSIF Bond Portfolio
CAMCO utilizes a team approach to the management of the fixed-income assets of
the Bond Portfolio. CAMCO has actively managed these assets since March 1997.
Prior to this, the fixed-income assets were managed by US Trust as a Subadvisor
with CAMCO providing oversight. Reno J. Martini, Senior Vice President and Chief
Investment Officer, heads this team and oversees the management of all Calvert
portfolios for CAMCO. Mr. Martini has over 19 years of experience in the
securities industry and has been the head of the asset management team since
1985.
- --------------------------------------------------------------------------------
CSIF Equity Portfolio
Loomis, Sayles & Company, L.P.
Loomis, Sayles & Company, L.P. is the Subadvisor to the Equity Portfolio. 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.
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 16
years experience in the investment business.
- --------------------------------------------------------------------------------
CWVF International Equity Fund
Murray Johnstone International, Ltd.
Murray Johnstone International, Ltd. ("Murray Johnstone") is the Subadvisor to
the CWVF International Equity Fund. Its principal business office in the US is
875 N. Michigan Avenue, Suite 3415, Chicago, Illinois 60611. CAMCO may manage
the US dollar portion of the Fund's cash reserves. CAMCO will continuously
monitor and evaluate the performance and investment style of the Subadvisor. The
Subadvisor is a wholly-owned subsidiary of United Asset Management Company.
Andrew Preston, International Equity's Portfolio Manager, studied at Melbourne
University in Australia and Ritsumeikan University in Japan prior to working for
the Australian Department of Foreign Affairs. He joined Murray Johnstone in
1985, as an analyst in the UK and US departments, became Fund Manager in the
Japanese Department, played a prominent role in the establishment and operation
of Yamaichi-Murray Johnstone, and then began to support Murray Johnstone's
growing US business.
- --------------------------------------------------------------------------------
Calvert Social Investment Fund Advisory Fees
CAMCO receives a fee based on a percentage of CSIF's assets, and for the Managed
Growth and Equity Portfolios only, a performance (+ or -) fee as well. From
this, CAMCO pays the Subadvisors where applicable.
For its services during fiscal year 1997, CAMCO was entitled to and did receive,
pursuant to the Investment Advisory Agreement, 0.50% of the Money Market
Portfolio's average daily net assets. It also received 0.59% of the Bond
Portfolio's, 0.55% of the Equity Portfolio's (after performance adjustment), and
0.60% of the Managed Growth Portfolio's (after performance adjustment) average
daily net assets as investment advisory fees. With respect to the Bond Portfolio
for the period March 1, 1997 to February 29, 2000, the Advisor has voluntarily
agreed to limit its investment advisory fee to 0.55% of the Bond Portfolio's
average daily net assets.
Investment selections for the fixed-income assets of the CSIFManaged Growth
Portfolio are made by CAMCO. The Subadvisors make the investment selections for
the remaining assets. Subadvisory fees are paid by CAMCO and are equal to a base
fee of 0.25% of the Managed Growth Portfolio's average daily net assets, plus or
minus a 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.
<PAGE>
The Investment Advisory Agreement between CSIF and CAMCO, with respect to the
Managed Growth Portfolio, provides that CAMCO is entitled to a base annual fee
("Base Fee"), payable monthly, of 0.70% of the Portfolio's average daily net
assets. CAMCO may earn (or have its base fee reduced by) a performance
adjustment ("Performance Fee") based on the extent to which performance of the
Managed Growth Portfolio exceeds or trails the Relevant Index. The Relevant
Indices are as follows:
CAMCO: Lehman Aggregate Bond Index
NCM: Russell 3000
Brown: Standard & Poors 500 Stock Index
Performance versus Performance
the Relevant Index Fee Adjustment
- --------------------------------------------------------------------------------
6% to < 12% 0.05%
12% to < 18% 0.10%
18% or more 0.15%
Loomis, Sayles makes investment selections for the Equity Portfolio. It receives
a subadvisory fee from CAMCO equal to a base fee of 0.25% of the Equity
Portfolio's average daily net assets, plus or minus a performance fee as set
forth in the table above. Loomis, Sayles also receives a 0.05% fee, paid by
CAMCO (not CSIF) for its assistance with the distribution of CSIF.
The Investment Advisory Agreement between CAMCO and CSIF, with respect to the
Equity Portfolio, provides that CAMCO is entitled to a base annual fee, payable
monthly, of 0.70% of the Portfolio's average daily net assets. CSIF pays a
monthly performance fee of plus or minus 0.20%, based on the extent to which
performance of the Equity Portfolio exceeds or trails the S&P's 500 Composite
Index:
Performance versus Performance
the S&P's 500 Composite Index Fee Adjustment
- --------------------------------------------------------------------------------
6% to < 12% 0.07%
12% to < 18% 0.14%
18% or more 0.20%
Prior to March 1, 1997, US Trust made investment selections for the CSIF Bond
Portfolio pursuant to an Investment Subadvisory Agreement with CAMCO. For fiscal
1997, CAMCO paid US Trust a fee of 0.20% of the assets of the Bond Portfolio.
CWVF International Equity Fund Advisory Fees
The Investment Advisory Agreement between CWVF International Equity Fund and
CAMCO provides that CAMCO is entitled to an annual fee, payable monthly, of
1.00% of International Equity's average daily net assets. For the year ended
September 30, 1997, CAMCO received fees of 1.00% of the average daily net
assets. CAMCO may, in its discretion, defer its fees or assume International
Equity's operating expenses. The Investment Advisory Agreement provides that
CAMCO may later, to the extent permitted by law, recapture any fees it deferred,
or expenses it assumed during the two prior years. During the 1997 fiscal year,
CAMCO did not recapture fees.
The Investment Subadvisory Agreement between CAMCO and Murray Johnstone provides
that Murray Johnstone is entitled to a subadvisory fee of 0.45% of CWVF
International Equity Fund's average daily net assets it manages. Murray
Johnstone's fee is paid by CAMCO, not CWVF. Murray Johnstone also receives a
0.05% fee, paid by CAMCO (not CWVF) for its assistance with the distribution of
CWVF International Equity Fund.
- --------------------------------------------------------------------------------
Calvert Distributors, Inc. serves as underwriter to market each Funds' shares.
Calvert Distributors, Inc. ("CDI") is the principal underwriter and distributor
for each Fund. Under the terms of its underwriting agreement with the Funds, CDI
markets and distributes the Funds' shares and is responsible for preparing
advertising and sales literature, and printing and mailing prospectuses to
prospective investors.
- --------------------------------------------------------------------------------
Calvert Administrative Services Company provides administrative services for
CWVF International Equity.
Calvert Administrative Services Company ("CASC"), an affiliate of CAMCO,
provides certain administrative services to International Equity, including the
preparation of regulatory filings and shareholder reports, the daily
determination of its net asset value per share and dividends, and the
maintenance of its portfolio and general accounting records. For providing such
services, CASC receives an annual fee, payable monthly, from CWVF International
Equity of 0.10% of its aggregate daily net assets, with a minimum fee of $40,000
per year.
- --------------------------------------------------------------------------------
The transfer agent keeps your account records.
<PAGE>
Calvert Shareholder Services, Inc. is the shareholder servicing agent for each
Fund. National Financial Data Services, Inc. ("NFDS"), 1004 Baltimore, Kansas
City, Missouri, 64105, is the transfer and dividend disbursing agent for each
Fund.
- --------------------------------------------------------------------------------
SHAREHOLDER GUIDE
- --------------------------------------------------------------------------------
OPENING AN ACCOUNT
- --------------------------------------------------------------------------------
You can buy shares of CSIFor CWVF 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 Fund and 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
CSIF Managed Growth, CSIF Bond, CSIF Equity, and CWVF International Equity each
offer three 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 (four years for CSIF Bond). Class B shares will
automatically convert to Class A shares at the end of eight calendar years after
purchase (six calendar years for CSIF Bond).
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.
Each Portfolio bears some of the costs of selling its shares under Distribution
Plans adopted with respect to its Class A, B 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, while payments under the Class B and C Distribution Plan are 1.00% of
the average daily net asset value of Class B and C shares, respectively.
- --------------------------------------------------------------------------------
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 "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. 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. Brokers or others may receive
different levels of compensation depending on which class of shares they sell.
- --------------------------------------------------------------------------------
Class A Shares - CSIF Managed Growth, CSIF Equity, and CWVF International Equity
Portfolios
Class A shares are offered at net asset value plus a front-end sales charge as
follows:
<TABLE>
<CAPTION>
As a % of Allowed to Amount of As a % of net
Amount of Brokers as a % of
Investment offering price invested offering price
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
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%
<PAGE>
$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%*
CSIF Bond Portfolio
Class A shares are offered at net asset value plus a front-end sales charge as follows:
<CAPTION>
As a % of Allowed to Amount of As a % of net
Amount of Brokers as a % of
Investment offering price invested offering price
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investment offering price invested offering price
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% 0.00%*
</TABLE>
*CDI may pay the dealer a finder's fee of up to 0.50% (0.25% for CSIF Bond) 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.
- --------------------------------------------------------------------------------
CSIF Managed Growth, Bond and Equity Portfolios, and CWVF International Equity:
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 brokers with whom it has dealer
agreements, CDI may reallow up to the full applicable sales charge. Brokers 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
CSIFand CWVF have adopted a Distribution Plan with respect to Class A shares
(the "Class A Distribution Plan"), which provides for payments at a maximum
annual rate of 0.35% (0.25% for the CSIF 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 Funds
to CDI under the Class A Distribution Plan are used to pay to brokers 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, 1997, the Managed Growth, Bond, and Equity Portfolios
of CSIF paid Class A Distribution Plan expenses of 0.24%, 0.20%, and 0.23% of
average net assets, respectively. CSIF Money Market Portfolio did not pay any
Distribution Plan expenses in fiscal 1997. For the same period, CWVF
International Equity paid Class A Distribution Plan expenses of 0.25% of average
net assets.
<PAGE>
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:
<TABLE>
<CAPTION>
Contingent Deferred Sales
Charge As A Percentage of Redemption During Net Asset Value At
Redemption
- ------------------------------------------------------------------------------------------------------------------
CSIF Managed Growth,Equity
and CWVF International CSIFBond
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
1st year since purchase 5% 4%
2nd year since purchase 4% 3%
3rd year since purchase 4% 2%
4th year since purchase 3% 1%
5th year since purchase 2% None
6th year since purchase 1% None
7th year since purchase and thereafter None None
</TABLE>
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 (six years
for CSIF Bond Portfolio) 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
CSIF and CWVF have adopted a Distribution Plan with respect to 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 Funds under
the Class B Distribution Plan are currently used by CDI to pay others (1) a
commission at the time of purchase of up to 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 not available through all brokers. Class C shares are offered
at net asset value, without a front-end sales charge. With certain exceptions,
CSIFand CWVF 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
CSIF and CWVF have adopted a Distribution Plan with respect to 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
each Fund under the Class C Distribution Plan are currently used by CDI to pay
brokers 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%, of the average daily net asset value of each share sold by such others.
For the 1997 fiscal year, the Class C Distribution Plan expenses for CSIF
Managed Growth and Equity Portfolios and CWVF International Equity were 1.00% of
average net assets for each.
- --------------------------------------------------------------------------------
<PAGE>
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 four years for CSIF Bond Class B; more than one year
for Class C for all funds) 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 1/2 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).
- --------------------------------------------------------------------------------
Arrangements with Broker/Dealers and Others
CDI may also pay additional concessions, including non-cash promotional
incentives, such as merchandise or trips, to brokers employing registered
representatives who have sold or are expected to sell a minimum dollar amount of
shares of the Funds and/or shares of other Funds underwritten by CDI. CDI may
make expense reimbursements for special training of a broker's registered
representatives, advertising or equipment, or to defray the expenses of sales
contests. All such payments will be in compliance with NASD rules. CDI will
offer a full reallowance of the Class A sales charge on CWVF International
Equity to The Advisors Group, on sales from April 1 through August 31, 1998.
<TABLE>
<CAPTION>
HOW TO BUY SHARES
(BE SURE TO SPECIFY WHICH CLASS YOU ARE BUYING)
- ------------------------------------------------------------------------------------------
METHOD NEW ACCOUNTS ADDITIONAL INVESTMENTS
- ------------------------------------------------------------------------------------------
<S> <C> <C>
BY MAIL $2,000 minimum (CWVF) $250 minimum
$1,000 minimum (CSIF)
Please make your check payable Please make your check payable
to the Fund and mail it to the Fund and mail it
with your application to: with 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, Calvert Group Calvert Group
CERTIFIED, OR c/o NFDS, 6th Floor c/o NFDS, 6th Floor
OVERNIGHT MAIL 1004 Baltimore 1004 Baltimore
Kansas City, MO 64105-1807 Kansas City, MO 64105-1807
- ------------------------------------------------------------------------------------------
THROUGH YOUR $2,000 minimum (CWVF) $250 minimum
FINANCIAL PROFESSIONAL $1,000 minimum (CSIF)
- ------------------------------------------------------------------------------------------
AT THE CALVERT Visit the Calvert Branch Office to make investments by check.
OFFICE 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 $2,000 minimum (CWVF) $250 minimum
(FROM YOUR $1,000 minimum (CSIF)
ACCOUNT IN When opening an account by exchange, your new account must
ANOTHER CALVERT be established with the same name(s), address and taxpayer
GROUP FUND) identification number as your existing Calvert account.
<PAGE>
- --------------------------------------------------------------------------------
BY BANK WIRE $2,000 minimum (CWVF) $250 minimum
$1,000 minimum (CSIF)
- --------------------------------------------------------------------------------
BY CALVERT MONEY Not Available $50 minimum
CONTROLLER* for Initial Investment
</TABLE>
*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.
<PAGE>
NET ASSET VALUE
- --------------------------------------------------------------------------------
CSIF 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 Portfolio'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.
- --------------------------------------------------------------------------------
CSIF Managed Growth, Bond, and Equity Portfolios, and CWVF International Equity
Fund: 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. For Portfolios with more than one class of shares, the NAVs of each
class will vary daily depending on the number of shares outstanding for each
class.
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
particular Fund's Board of Trustees/Directors believes accurately reflects fair
value.
The NAV is calculated as of the close of each business day, which coincides with
the closing of the regular session of the New York Stock Exchange (normally 4:00
p.m. Eastern time). Each Fund is open for business each day the New York Stock
Exchange is open. All purchases will be confirmed and credited to your account
in full and fractional shares (rounded to the nearest 1/1000 of a share). The
CSIF 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.
All of your purchases must be made in US dollars and checks must be drawn on US
banks. No cash will be accepted. The Funds reserve the right to suspend the
offering of shares for a period of time or to reject any specific purchase
order. If your check is not paid, your purchase will be canceled and you will be
charged a $10 fee plus costs incurred by the Funds. 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 of
redemptions against those funds will be held until the transfer agent is
reasonably satisfied that the purchase payment has been collected. Drafts
written on the CSIF Money Market Portfolio against such funds will be returned
for uncollected funds. 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.
- --------------------------------------------------------------------------------
CSIF Money Market Portfolio
Your purchase will be processed at the net asset value calculated after your
order is received and accepted. If your wire purchase is received by 5:00 p.m.
Eastern time, your account will begin earning dividends on the next business
day. Exchanges begin earning dividends the next business day after the exchange
request is received by mail or telephone. Purchases received by check will begin
earning dividends the next business day after they are processed to the account.
CSIF Managed Growth, Bond, and Equity Portfolios and CWVF International Equity
Your purchase will be processed at the next offering price based on the next net
asset value calculated for the applicable shares after your order is received
and accepted.
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
- --------------------------------------------------------------------------------
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.
<PAGE>
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. Before you make an exchange from
a Fund or Portfolio, please note the following:
- - Call your broker or a Calvert representative for information and a
prospectus for any of Calvert's other Funds registered in your state. Read
the prospectus of the Fund or Portfolio into which you want to exchange for
relevant information, including class offerings.
- - 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.
- - 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 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 any Fund, and does not apply to trades
solely among money market funds.
- - The Funds reserve 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 has round-the-clock telephone service and a website at
http://www.calvertgroup.com that lets existing customers obtain prices, yields,
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 ($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 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 more information.
- --------------------------------------------------------------------------------
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 Funds,
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
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 expenses while saving paper and postage expense.
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 Funds pay 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 a 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."
- - 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.
<PAGE>
- - 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 IRAs 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.
- --------------------------------------------------------------------------------
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 (less any applicable CDSC). See below for specific
requirements necessary to make sure your redemption request is acceptable.
Remember that the Funds may hold payment on the redemption of your shares until
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
Funds, 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.
- --------------------------------------------------------------------------------
CSIF 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 each of your accounts of at least $1,000. If the
balance in your CSIF Money Market account falls below the $1,000 minimum during
a month, a $3 fee will be charged to your account. This fee is paid to the
portfolio to offset the generally higher costs of small dollar accounts.
Accounts in other portfolios which have a balance of less than $1,000 may be
closed and the proceeds mailed to the address of record. You will be given a
notice that your account is below the minimum and closed after 30 days if the
balance is not brought up to the required minimum amount.
- --------------------------------------------------------------------------------
HOW TO SELL YOUR SHARES
- --------------------------------------------------------------------------------
Draftwriting (CSIF Money Market Portfolio only)
You may redeem shares in your CSIF 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 CSIF Money Market will charge a service
fee for drafts returned for insufficient funds. CSIF Money Market will charge
$25 for any stop payment on drafts. As a service to shareholders, shares may be
automatically transferred between your Calvert accounts to cover drafts you have
written. The signature of only one authorized signer is required to honor a
draft.
- --------------------------------------------------------------------------------
By Mail To: Calvert Group P.O. Box 419544 Kansas City, MO 64141-6544.
You may redeem available shares from your account at any time by sending a
letter of instruction, including your name, account and 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, 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.
- --------------------------------------------------------------------------------
<PAGE>
Type of Registration Requirements
- --------------------------------------------------------------------------------
Corporations, Letter of instruction and corporate resolution, signed
Associations 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 a bank you have
previously authorized. A charge of $5 is imposed on wire transfers of less than
$1,000. See "Telephone Transactions."
<PAGE>
Calvert Money Controller - Automatic Investment Plan
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.
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
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 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. 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 AND TAXES
- --------------------------------------------------------------------------------
Each year, the Funds distribute substantially all of the net investment income
to shareholders.
Dividends from CSIF Money Market Portfolio's net investment income are accrued
daily and paid monthly. The CSIF Managed Growth Portfolio pays dividends
quarterly, CSIF Bond Portfolio pays dividends monthly, and CSIF Equity Portfolio
andCWVF International Equity Fund pay 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 net short-term
capital gains (treated as dividends for tax purposes) and net long-term capital
gains, if any, are normally paid once a year; however, the Funds do 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 Funds in writing to change your payment options. If you elect to
have dividends and/or distributions paid in cash, and the US 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 CSIFManaged Growth,
Bond, and Equity Portfolios and CWVF International Equity Fund 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, 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
<PAGE>
In January, each Portfolio will mail you Form 1099-DIV indicating the federal
tax status of dividends and any capital gain distributions paid to you 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
shares.
- --------------------------------------------------------------------------------
CSIF Managed Growth, Bond, and Equity Portfolios and CWVFInternational Equity
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 US 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 us
to withhold 31% of your dividends, and possibly 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. Calvert Group 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 Funds 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 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 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 shares at a discount, and
3. satisfies uniform criteria which enable CDI and brokers offering 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 brokers distributing
shares, must agree to include sales and other materials related to the Funds in
its publications and mailings to members at reduced or no cost to CDI or
brokers.
<PAGE>
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 I.R.C. of 1986, as amended, or for a plan
qualifying under section 403(b) or 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 Funds, 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 or portfolio of the Calvert Group
of Funds sold to (i) current or retired Directors, Trustees, or Officers of the
Calvert Group of Funds, employees of Calvert Group, Ltd. and its affiliates, or
their family members; (ii) CSIF Advisory Council Members, directors, officers,
and employees of any subadvisor for the Calvert Group of Funds, employees of
broker/dealers distributing the Fund's shares and immediate family members of
the Council, subadvisor, or broker/dealer; (iii) Purchases made through a
Registered Investment Advisor, (iv) Trust departments of banks or savings
institutions for trust clients of such bank or institution, (v) Purchases
through a broker maintaining an omnibus account with the fund or portfolio,
provided 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 CSIF Managed Growth Portfolio may be sold at net asset value to
you if your account was established 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 shares and then within 30 days decide to reinvest in the same Fund
or Portfolio, 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 Funds reserve the right to modify or
eliminate this privilege.
<PAGE>
Prospectus
January 31, 1998, Revised March 31, 1998
CALVERT SOCIAL INVESTMENT FUND
CALVERT INTERNATIONAL EQUITY FUND
To Open an Account:
800-368-2748
Performance and Prices:
Calvert Information Network
24 hours, 7 days a week
800-368-2745
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
c/o NFDS, 6th Floor
1004 Baltimore
Kansas City, MO 64105
Calvert Group Website
http://www.calvertgroup.com
Principal Underwriter
Calvert Distributors, Inc.
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
<PAGE>
CALVERT SOCIAL INVESTMENT FUND
(MANAGED GROWTH, BOND, EQUITY AND MONEY MARKET PORTFOLIOS)
STATEMENT OF ADDITIONAL INFORMATION
MARCH 31, 1998
INVESTMENT ADVISOR
Calvert Asset Management Company, Inc.
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
SHAREHOLDER SERVICE TRANSFER AGENT
Calvert Shareholder Services, Inc. National Financial Data Services, Inc.
4550 Montgomery Avenue 1004 Baltimore
Suite 1000N 6th Floor
Bethesda, Maryland 20814 Kansas City, Missouri 64105
PRINCIPAL UNDERWRITER INDEPENDENT ACCOUNTANTS
Calvert Distributors, Inc. Coopers & Lybrand, L.L.P.
4550 Montgomery Avenue 250 West Pratt Street
Suite 1000N Baltimore, Maryland 21201
Bethesda, Maryland 20814
TABLE OF CONTENTS
Investment Objectives and Policies 1
Investment Restrictions 7
Investment Selection Process 8
Dividends and Taxes 9
Net Asset Value 10
Calculation of Yield and Total Return 12
Purchase and Redemption of Shares 14
Reduced Sales Charges (Class A) 15
Advertising 15
Trustees, Officers and Advisory Council 16
Investment Advisor 18
Method of Distribution 19
Transfer and Shareholder Servicing Agents 20
Portfolio Transactions 21
Independent Accountants and Custodians 21
General Information 22
Financial Statements 22
Control Persons and Principal Holders of Securities 22
Appendix 22
<PAGE>
STATEMENT OF ADDITIONAL INFORMATION--Mach 31, 1998
CALVERT SOCIAL INVESTMENT FUND
4550 Montgomery Avenue, Bethesda, Maryland 20814
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
New Account (800) 368-2748 Shareholder
Information: (301) 951-4820 Services: (800) 368-2745
- --------------------------------------------------------------------------------
Broker (800) 368-2746 TDD for the Hearing-
Services: (301) 951-4850 Impaired: (800) 541-1524
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
This Statement of Additional Information ("SAI") is not a prospectus.
Investors should read the Statement of Additional Information in conjunction
with the Fund's Prospectus, dated March 31, 1998, 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 five separate portfolios selected with a concern for the
social impact of each investment: the Money Market Portfolio, the Managed Growth
Portfolio, the Equity Portfolio, the Bond Portfolio, to which this SAI applies
and the Managed Index Portfolio, which has a separate SAI.
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
<PAGE>
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
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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.
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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
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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.
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
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conditions are requirements that to the extent that a Portfolio enters into
future contracts and options on futures positions that are not for bona fide
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
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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.
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INVESTMENT RESTRICTIONS
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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.
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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.
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 (10%
limitation for CSIF Money Market).
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.
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INVESTMENT SELECTION PROCESS
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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
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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.
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DIVIDENDS AND TAXES
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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 each 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
9
<PAGE>
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, less any applicable contingent deferred
sales charge ("CDSC"). 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, Martin Luther King 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
10
<PAGE>
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.
NET ASSET VALUE AND OFFERING PRICE PER SHARE
CSIF Money Market Portfolio
($166,110,561/166,162,505 shares) $1.00
------
------
CSIF Managed Growth Portfolio
Net asset value per share
($675,306,495/19,361,689 shares) $34.88
Maximum sales charge, Class A
(4.75% of offering price) 1.74
------
Offering price per share, Class A $36.62
------
------
Class C net asset value and offering price per share
($8,897,500/257,731shares) $34.52
------
------
CSIF Bond Portfolio
Net asset value per share
($59,656,097/3,584,947 shares) $16.64
Maximum sales charge
(3.75% of offering price) 0.65
------
Offering price per share $17.29
------
------
CSIF Equity Portfolio
Net asset value per share
($147,002,362/5,294,260 shares) $27.77
Maximum sales charge, Class A
(4.75% of offering price) 1.38
------
Offering price per share, Class A $29.15
------
------
Class C net asset value and offering price per share
($6,248,542/236,978 shares) $26.37
------
------
11
<PAGE>
- --------------------------------------------------------------------------------
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:
365/7
Effective yield = (base period return + 1) -1
For the seven-day period ended September 30, 1997, the Money Market
Portfolio's yield was 4.86% and its effective yield was 4.97%.
BOND PORTFOLIO: YIELD
The Bond Portfolio may also advertise its yield from time to time. Yield is
calculated separately for each Class of the Portfolio. Yield quotations are
historical and are not intended to indicate future performance. Yield quotations
for the Bond Portfolio refer to the aggregate imputed yield-to-maturity of each
of the Portfolio's investments based on the market value as of the last day of a
given thirty-day or one-month period, less accrued expenses (net of
reimbursement), divided by the average daily number of outstanding shares
entitled to receive dividends times the maximum offering price on the last day
of the period (so that the effect of the sales charge is included in the
calculation), compounded on a "bond equivalent," or semiannual, basis. The Bond
Portfolio's yield is computed according to the following formula:
a-b 6
Yield = 2 (----- +1) - 1
cd
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, 1997 was 4.77% for Class A 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 of the Managed
Growth, Bond and Equity Portfolios. 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 "return without maximum load" (or "w/o max load") as referred to
herein. For periods of more than one year, the
12
<PAGE>
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 "return without maximum
load" (or "w/o max load") 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. Return without maximum load, 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:
<TABLE>
<CAPTION>
Periods Ended Class A Class A Class C
September 30, 1997 w/o Max Load Average Annual Return Average Annual Return
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MANAGED GROWTH PORTFOLIO
One Year 21.94% 16.30% 20.56%
Five Years 10.98% 9.91% N/A
Ten Years 9.31% 8.78% N/A
Class C From Inception N/A N/A 11.22%
(March 1, 1994)
Periods Ended Class A Class A
September 30, 1997 w/o Max Load Average Annual Return
- ----------------------------------------------------------------------------------------------------------
BOND PORTFOLIO
One Year 9.89% 5.74%
Five Years 6.31% 5.50%
Ten Years 8.86% 8.44%
Periods Ended Class A Class A Class C
September 30, 1997 w/o Max Load Average Annual Return Average Annual Return
- ----------------------------------------------------------------------------------------------------------
EQUITY PORTFOLIO
One Year 31.34% 25.07% 29.84%
Five Years 12.17% 11.08% N/A
Ten Years 9.66% 9.13% N/A
Class C From Inception N/A N/A 11.89%
(March 1, 1994)
</TABLE>
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.
Class C shares of the Bond Portfolio were converted to Class A shares on October
29, 1996. CAM assumed active management of the Bond Portfolio effective March,
1997, 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.
13
<PAGE>
The Fund may advertise an internal rate of return ("IRR") on direct company
holdings in its special equities program. This is a non-standardized performance
calculation. See the explanation in the "Advertising" portion of this Statement,
below. These direct company holdings represent only a very small portion of a
Portfolio's assets, and the IRR on this part of the special equities program
should not be confused with the yield and total return of any particular
Portfolio.
- --------------------------------------------------------------------------------
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.
Certain Class B and Class C shares may be subject to a contingent deferred
sales charge which is subtracted from the redemption proceeds (see Prospectus,
"Calculation of Contingent Deferred Sales Charges and Waiver of Sales Charges").
Amounts redeemed by telephone may be mailed by check to the investor to the
address of record. Amounts of more than $50 and less than $300,000 may be
transferred electronically to the investor. Amounts of $l,000 or more will be
transmitted by wire 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
14
<PAGE>
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 nation's leading family of socially responsible mutual
funds, both in terms of socially responsible mutual fund assets under
management, and number of socially responsible mutual fund portfolios offered
(source: Social Investment Forum, November 30, 1997). Calvert Group was also the
first to offer a family of socially responsible mutual fund portfolios.
The Fund may advertise an internal rate of return ("IRR") on direct company
holdings in its special equities program. This is a non-standardized performance
calculation. The IRR includes direct investments in companies only (no funds,
partnerships, or financial institutions). It is based on annual cash flows
beginning with the first direct investment on December 18, 1992 to the date
shown in the advertisement. Cash outflows include all disbursements to
companies, including follow-ons. The IRR assumes full exercise of warrant
positions in the year of
15
<PAGE>
calculation if not previously exercised. Cash inflows includes all receipts from
acquisitions and earnouts. It also assumes positions are fully liquidated in the
year of calculation. Public company holdings are liquidated at market price,
including warrants; others are liquidated at carrying value whether marked up,
down, or at cost. All but a small portion of these returns are unrealized. These
direct company holdings represent only a very small portion of a Portfolio's
assets, and the IRR on this part of the special equities program should not be
confused with the yield and total return of any particular Portfolio. The IRR on
direct company holdings in the special equities program of the Fund's Managed
Growth Portfolio was 16% from December 18, 1992 through September 30, 1997. Past
performance is no guarantee of future results.
- --------------------------------------------------------------------------------
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. DOB: 9/10/47. Address: 69 Kelley Road, Falmouth,
Virginia 22405.
RICHARD L. BAIRD, JR., Trustee. Mr. Baird is Executive Vice President 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. DOB: 5/9/48. Address: 211
Overlook Drive, Pittsburgh, Pennsylvania 15216.
*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. DOB: 5/15/48.
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 Chairman of the Board of Ultrafem, Inc. 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. DOB: 7/2/50.
Address: 175 West 12th Street, New York, New York 10011.
*BARBARA J. KRUMSIEK, President and Director. Ms. Krumsiek serves as
President, Chief Executive Officer and Vice Chairman of Calvert Group, Ltd. and
as an officer and director of each of its affiliated companies. She is a
director of Calvert-Sloan Advisers, L.L.C., co-chair of the Board of Directors
of Calvert World Values Fund, Inc., and a trustee/director of each of the
investment companies in the Calvert Group of Funds. Prior to joining Calvert
Group, Ms. Krumsiek served as Senior Vice President of Alliance Capital LP's
Mutual Fund Division. DOB: 08/09/52.
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. DOB:
12/13/44. 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. DOB: 9/7/49. Address: 1225 W. 26th Avenue,
Vancouver, British Columbia, Canada V6H2A8.
*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. DOB: 4/22/46. Address: 7315 Wisconsin Avenue, Bethesda,
Maryland 20814.
16
<PAGE>
*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 Executive Chairman of GroupServe, an internet company focused on
community building collaborative tools, and 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. DOB: 7/20/48. Address: 1715 18th Street,
N.W., Washington, D.C. 20009.
RENO J. MARTINI, Senior Vice President. Mr. Martini is Senior Vice
President of Calvert Group, Ltd., and Senior Vice President and Chief Investment
Officer of Calvert Asset Management Company, Inc. Mr. Martini is also a director
and President of Calvert-Sloan Advisers, L.L.C., and a director and officer of
Calvert New World Fund. DOB: 1/13/50.
RONALD M. WOLFSHEIMER, CPA, Treasurer. Mr. Wolfsheimer is Senior Vice
President and Controller of Calvert Group, Ltd. and its subsidiaries and an
officer of each of the other investment companies in the Calvert Group of Funds.
Mr. Wolfsheimer is Vice President and Treasurer of Calvert-Sloan Advisers,
L.L.C., and a director of Calvert Distributors, Inc. DOB: 7/24/52.
WILLIAM M. TARTIKOFF, Esq., Vice President and Assistant Secretary. Mr.
Tartikoff is an officer of each of the investment companies in the Calvert Group
of Funds, and is Senior Vice President, Secretary, and General Counsel of
Calvert Group, Ltd., and each of its subsidiaries. Mr. Tartikoff is also Vice
President and Secretary of Calvert-Sloan Advisers, L.L.C., a director of Calvert
Distributors, Inc., and is an officer of Acacia National Life Insurance Company.
DOB: 8/12/47.
CATHERINE S. BARDSLEY, Esq., Secretary. Ms. Bardsley is counsel to
Kirkpatrick & Lockhart, LLP, the Fund's legal counsel. DOB: 10/4/49. Address:
1800 Massachusetts Avenue, N.W., Washington, D.C. 20036.
DANIEL K. HAYES, Vice President. Mr. Hayes is Vice President of Calvert
Asset Management Company, Inc., and is an officer of each of the other
investment companies in the Calvert Group of Funds, except for Calvert New World
Fund, Inc. DOB: 9/9/50.
SUSAN WALKER BENDER, Esq., Assistant Secretary. Ms. Bender is Associate
General Counsel of Calvert Group, and an officer of each of its subsidiaries and
Calvert-Sloan Advisers, L.L.C. She is also an officer of each of the other
investment companies in the Calvert Group of Funds. DOB: 1/29/59.
KATHERINE STONER, Esq., Assistant Secretary. Ms. Stoner is Associate
General Counsel of Calvert Group and an officer of each of its subsidiaries and
Calvert-Sloan Advisers, L.L.C. She is also an officer of each of the other
investment companies in the Calvert Group of Funds. DOB: 10/21/56.
LISA CROSSLEY NEWTON, Esq., Assistant Secretary and Compliance Officer. Ms.
Newton is Associate General Counsel of Calvert Group and an officer of each of
its subsidiaries and Calvert-Sloan Advisers, L.L.C. She is also an officer of
each of the other investment companies in the Calvert Group of Funds. DOB:
12/31/61.
IVY WAFFORD DUKE, Esq., Assistant Secretary. Ms. Duke is Assistant Counsel
of Calvert Group and an officer of each of its subsidiaries and Calvert-Sloan
Advisers, L.L.C. She is also an officer of each of the other investment
companies in the Calvert Group of Funds. Prior to working at Calvert Group, Ms.
Duke was an Associate in the Investment Management Group of the Business and
Finance Department at Drinker Biddle & Reath. DOB: 9/7/68.
The address of directors and officers, unless otherwise noted, is 4550
Montgomery Avenue, Suite 1000N, Bethesda, Maryland 20814. Trustees and officers
of the Fund as a group own less than 1% of the Fund's outstanding shares.
Trustees marked with an *, above, are "interested persons" of the Fund, under
the Investment Company Act of 1940.
Mr. Baird and Ms. Adamson 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, Dr. Mollner, 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 and Silby 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.
17
<PAGE>
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, Mollner and Baird, Ms. Adamson, Ms. Jones, Rev. Morris, and Ms.
Krumsiek and Mr. Bynum of the Advisory Council, serve as directors 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 1997, trustees of the Fund not affiliated with the Fund's
Advisor were paid $64,533 by the Money Market Portfolio, $241,519 by the Managed
Growth Portfolio, $24,038 by the Bond Portfolio, and $44,007 by the Equity
Portfolio. Trustees of the Fund not affiliated with the Advisor presently
receive an annual fee of $20,500 for service as a member of the Board of
Trustees of the Calvert Group of Funds, and a fee of $750 to $1500 for each
regular Board or Committee meeting attended; such fees are allocated among the
respective Portfolios based upon their relative net assets. Trustees who serve
only the CSIF Board receive an annual fee of $15,430, plus $600 for each Board
and Committee meeting attended.
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
<TABLE>
<CAPTION>
Fiscal Year 1997 Aggregate Compensation Pension or Retirement Total Compensation from
(unaudited numbers) from Registrant for Service Benefits Accrued as part Registrant and Fund
as Trustee of Registrant Expenses* Complex paid to Trustee**
Name of Trustee
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Rebecca Adamson $22,430 $6,198 $24,230
Richard L. Baird, Jr. $918 $0 $34,450
John G. Guffey, Jr. $11,781 $0 $61,615
Joy V. Jones $30,932 $0 $29,730
Terrence J. Mollner $31,910 $0 $44,131
Sydney Amara Morris $22,532 $0 $22,630
D. Wayne Silby $21,277 $0 $62,830
</TABLE>
*Ms. Adamson has chosen to defer a portion of her compensation. Her total
deferred compensation, including dividends and capital appreciation, was
$42,009.47 as of September 30, 1997.
**As of December 31, 1997. The Fund Complex consists of nine (9) registered
investment companies.
- --------------------------------------------------------------------------------
INVESTMENT ADVISOR
- --------------------------------------------------------------------------------
The Fund's Investment Advisor is Calvert Asset Management Company, Inc.,
4550 Montgomery Avenue, 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 Contracts between the Fund and the Advisor were entered into
on January 3, 1984 for the Money Market and Bond Portfolio, May 24, 1994 for the
Equity Portfolio, and July 1, 1995 for the Managed Growth Portfolio. The
contracts 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.
18
<PAGE>
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,
payable monthly, of 0.70% of the first $500 million of the Managed Growth
Portfolio's average daily net assets, 0.675% of the next $500 million of such
assets, and 0.65% of all assets over $1 billion (plus/minus up to 0.15%
performance adjustment fee), 0.65% of the Bond Portfolio's average daily net
assets (the Advisor has agreed to limit the fee to 0.55% through February 29,
2000), 0.70% of the Equity Portfolio's average daily net assets (plus/minus up
to 0.20% performance adjustment fee), and 0.50% of the Money Market Portfolio's
average daily net assets. 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.
CAM has retained NCM Capital Management Group, Inc. and Brown Capital
Management, Inc. as Subadvisors for the Managed Growth Portfolio, and Loomis,
Sayles & Company, L.P. ("Loomis, Sayles") to serve as Subadvisor 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 subadvisory 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
Subadvisors 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 advisory fees paid to the Advisor by the Money Market Portfolio for the
fiscal years ended September 30, 1995, 1996, and 1997 were $727,343, $809,573,
and $829,686, respectively. The advisory fees paid to the Advisor by the Managed
Growth Portfolio for the same years were $3,645,338, $4,054,218, and $3,739,407,
respectively. The advisory fees paid to the Advisor for these years by the Bond
Portfolio were $400,253, $421,016, and $363,612, respectively; and the Equity
Portfolio paid $569,589, $496,208, and $683,046, 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 respective Classes. The Money Market Portfolio
has never paid Distribution Plan expenses. For the fiscal years ended September
30, 1995, 1996, and 1997, the Managed Growth Portfolio paid Class A distribution
plan expenses of $1,219,694, $1,361,666 and $1,474,198, respectively. Of the
Class A distribution expenses paid in fiscal 1997, $871,094 was used to
compensate dealers for their share distribution promotional services, $179,250
was for the printing and mailing of prospectuses and sales materials to
investors (other than current shareholders), and the remainder partially
financed advertising. For fiscal year 1995, the Bond and Equity Portfolios paid
Class A distribution plan expenses of $121,992 and $203,878, respectively, and
for fiscal year 1996, $127,042 and $217,340, respectively. For fiscal year 1997,
the Bond and Equity Portfolios paid Class A distribution expenses of $122,531
and $277,434, respectively. Of the distribution
19
<PAGE>
expenses paid by Class A Shares of the Bond Portfolio in fiscal 1997, 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 1997, $255,767 was used to compensate dealers for their
share distribution promotional services, while the remainder 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 year 1995, CDI received net sales
charges of $203,099, $27,038, and $63,459, for the Managed Growth, Bond, and
Equity Portfolios, respectively. During fiscal year 1996, CDI received net sales
charges of $405,789, $56,699, and $129,525, for the Managed Growth, Bond, and
Equity Portfolios, respectively. For fiscal year 1997, CDI received net sales
charges of $331,679, $53,362, and $211,952, for the Managed Growth, Bond, and
Equity Portfolios, respectively.
For Class B and Class C Shares, CDI receives any CDSC paid.
For fiscal 1995, Class C Distribution Plan expenses were $28,447 and
$11,918 for the Managed Growth and Equity Portfolios, respectively. Fiscal year
1996 Class C Distribution Plan expenses were $52,406 and $22,628 for the Managed
Growth and Equity Portfolios, respectively, while 1997 Class C Distribution Plan
expenses were $77,871 and $44,775, respectively.
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 B and Class C Plans may not exceed, on an
annual basis, 1.00% of the Managed Growth, Bond and Equity Portfolios' Class B
and Class C average daily net assets, respectively.
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.
Certain broker-dealers, and/or other persons may receive compensation from
the investment advisor, underwriter, or their affiliates for the sale and
distribution of the securities or for services to the Fund. Such compensation
may include additional compensation based on assets held through that firm
beyond the regularly scheduled rates, and finder's fees payments to firms whose
representatives are responsible for soliciting a new account where the
accountholder does not choose to purchase through that firm.
- --------------------------------------------------------------------------------
TRANSFER AND SHAREHOLDER SERVICING AGENTS
- --------------------------------------------------------------------------------
National Financial Data Services, Inc. ("NFDS"), a subsidiary of State
Street Bank & Trust, has been retained by the Fund to act as transfer agent and
dividend disbursing agent. These responsibilities include:
20
<PAGE>
responding to certain shareholder inquiries and instructions, crediting and
debiting shareholder accounts for purchases and redemptions of Fund shares and
confirming such transactions, and daily updating of shareholder accounts to
reflect declaration and payment of dividends.
Calvert Shareholder Services, Inc., a subsidiary of Calvert Group, Ltd.,
and Acacia Mutual, has been retained by the Fund to act as shareholder servicing
agent. Shareholder servicing responsibilities include responding to shareholder
inquiries and instructions concerning their accounts, entering any telephoned
purchases or redemptions into the NFDS system, maintenance of broker-dealer
data, and preparing and distributing statements to shareholders regarding their
accounts. Calvert Shareholder Services, Inc. was the sole transfer agent prior
to January 1, 1998.
For these services, NFDS and Calvert Shareholder Services, Inc. receive a
fee based on the number of shareholder accounts and transactions.
- --------------------------------------------------------------------------------
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 Subadvisor 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 Subadvisor 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 Subadvisor, 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 Subadvisor's normal research activities or
expenses. In fiscal years 1995, 1996, and 1997, no commissions were paid to any
officer, trustee or Advisory Council member of the Fund or any of their
affiliates. For the Managed Growth Portfolio, 1996 and 1997 aggregate brokerage
commissions paid to broker-dealers were $693,085 and $547,048, respectively.
1996 and 1997 aggregate brokerage commissions paid to broker-dealers were
$352,527 and $329,488, respectively, for the Equity Portfolio.
The Advisor and Subadvisor 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 Subadvisor 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 1996 fiscal year, the portfolio turnover rates of the Managed Growth, Bond,
and Equity Portfolios were 111%, 22%, and 118%, respectively. The 1997 fiscal
year portfolio turnover rates of the Managed Growth, Bond, and Equity Portfolios
were 215%, 319%, and 93%, 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 1998. 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.
21
<PAGE>
- --------------------------------------------------------------------------------
GENERAL INFORMATION
- --------------------------------------------------------------------------------
The Fund was approved as a Massachusetts business trust on December 14,
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 Managed Growth, Bond and Equity Portfolios each offer three separate
classes of shares: Class A, Class B 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, 1997, are expressly incorporated by reference
and made a part of this Statement of Additional Information. A copy of the
Annual Report may be obtained free of charge by writing or calling the Fund.
- --------------------------------------------------------------------------------
CONTROL PERSONS AND PRINCIPAL HOLDERS OF SECURITIES
- --------------------------------------------------------------------------------
As of March 11, 1998, the following shareholder owned of record 5% or more
of CSIF Money Market Fund:
Name and Address % of Ownership
United Mine Workers of America 6.12%
Cash Deferred Savings Trust of 1988
c/o Dave Keyman
4455 Connecticut Avenue NW
Washington, DC 20008-2328
- --------------------------------------------------------------------------------
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.
22
<PAGE>
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.
23
<PAGE>
LETTER OF INTENT
---------------
Date
Calvert Distributors, Inc.
4550 Montgomery Avenue
Bethesda, MD 20814
Ladies and Gentlemen:
By signing this Letter of Intent, or affirmatively marking the Letter of
Intent option on my Fund Account Application Form, I agree to be bound by the
terms and conditions applicable to Letters of Intent appearing in the Prospectus
and the Statement of Additional Information for the Fund and the provisions
described below as they may be amended from time to time by the Fund. Such
amendments will apply automatically to existing Letters of Intent.
I intend to invest in the shares of:_____________________ (Fund or
Portfolio name) during the thirteen (13) month period from the date of my first
purchase pursuant to this Letter (which cannot be more than ninety (90) days
prior to the date of this Letter or my Fund Account Application Form, whichever
is applicable), an aggregate amount (excluding any reinvestments of
distributions) of at least fifty thousand dollars ($50,000) which, together with
my current holdings of the Fund (at public offering price on date of this Letter
or my Fund Account Application Form, whichever is applicable), will equal or
exceed the amount checked below:
__ $50,000 __ $100,000 __ $250,000 __ $500,000 __ $1,000,000
Subject to the conditions specified below, including the terms of escrow,
to which I hereby agree, each purchase occurring after the date of this Letter
will be made at the public offering price applicable to a single transaction of
the dollar amount specified above, as described in the Fund's prospectus. "Fund"
in this Letter of Intent shall refer to the Fund or Portfolio, as the case may
be. No portion of the sales charge imposed on purchases made prior to the date
of this Letter will be refunded.
I am making no commitment to purchase shares, but if my purchases within
thirteen months from the date of my first purchase do not aggregate the minimum
amount specified above, I will pay the increased amount of sales charges
prescribed in the terms of escrow described below. I understand that 4.75% of
the minimum dollar amount specified above will be held in escrow in the form of
shares (computed to the nearest full share). These shares will be held subject
to the terms of escrow described below.
From the initial purchase (or subsequent purchases if necessary), 4.75% of
the dollar amount specified in this Letter shall be held in escrow in shares of
the Fund by the Fund's transfer agent. For example, if the minimum amount
specified under the Letter is $50,000, the escrow shall be shares valued in the
amount of $2,375 (computed at the public offering price adjusted for a $50,000
purchase). All dividends and any capital gains distribution on the escrowed
shares will be credited to my account.
If the total minimum investment specified under the Letter is completed
within a thirteen month period, escrowed shares will be promptly released to me.
However, shares disposed of prior to completion of the purchase requirement
under the Letter will be deducted from the amount required to complete the
investment commitment.
Upon expiration of this Letter, the total purchases pursuant to the Letter
are less than the amount specified in the Letter as the intended aggregate
purchases, Calvert Distributors, Inc. ("CDI") will bill me for an amount equal
to the difference between the lower load I paid and the dollar amount of sales
charges which I would have paid if the total amount purchased had been made at a
single time. If not paid by the investor within 20 days, CDI will debit the
difference from my account. Full shares, if any, remaining in escrow after the
aforementioned adjustment will be released and, upon request, remitted to me.
24
<PAGE>
I irrevocably constitute and appoint CDI as my attorney-in-fact, with full
power of substitution, to surrender for redemption any or all escrowed shares on
the books of the Fund. This power of attorney is coupled with an interest.
The commission allowed by CDI to the broker-dealer named herein shall be at
the rate applicable to the minimum amount of my specified intended purchases.
The Letter may be revised upward by me at any time during the
thirteen-month period, and such a revision will be treated as a new Letter,
except that the thirteen-month period during which the purchase must be made
will remain unchanged and there will be no retroactive reduction of the sales
charges paid on prior purchases.
In determining the total amount of purchases made hereunder, shares
disposed of prior to termination of this Letter will be deducted. My
broker-dealer shall refer to this Letter of Intent in placing any future
purchase orders for me while this Letter is in effect.
- ------------------------------------ ------------------------------------
Dealer Name of Investor(s)
BY
- ------------------------------------ ------------------------------------
Authorized Signer Address
- ------------------------------------ ------------------------------------
Date Signature of Investor(s)
- ------------------------------------ ------------------------------------
Date Signature of Investor(s)
25
<PAGE>
PART C. OTHER INFORMATION
Item 24. Financial Statements and Exhibits
(a) Financial statements
Financial statements incorporated by reference to:
All financial statements for Calvert Social Investment Fund are
incorporated by reference to Registrant's Annual Report to Shareholders
dated September 30, 1997, and filed December 15, 1997.
Schedules II-VII, inclusive, for which provision is made in the applicable
accounting regulation of the Securities and Exchange Commission, are
omitted because they are not required under the related instructions, or
they are inapplicable, or the required information is presented in the
financial statements or notes thereto.
(b) Exhibits:
1. Declaration of Trust (incorporated by reference to Registrant's Initial
Registration Statement, November 30, 1981).
2. By-Laws (incorporated by reference to Registrant's Pre-Effective
Amendment No. 2, September 3, 1982).
4. Specimen Stock Certificate (incorporated by reference to Registrant's
Pre-Effective Amendment No. 12, December 21, 1987).
5. Advisory Contracts incorporated by reference to Registrant's
Post-Effective Amendment No. 11, August 25, 1987, and Post-Effective
Amendment No. 22, January 31, 1996.
6. Underwriting and Dealer Agreement, filed herewith.
7. Trustees' Deferred Compensation Agreement, (incorporated by
reference to Registrant's Post-Effective Amendment No. 17, December
20, 1991).
8. Custodial Contract , (incorporated by reference to Registrant's Post-
Effective Amendment No. 26, January 28, 1998).
9. Transfer Agency Contract, filed herewith.
9A. Form of Administrative Services Agreement with respect to
Registrant's Managed Index Portfolio (incorporated by reference to
Registrant's Post-Effective Amendment No. 24, December 17, 1997).
10. Opinion and Consent of Counsel as to Legality of Shares Being
Registered.
<PAGE>
11. Consent of Independent Accountants to Use of Report.
14. Retirement Plans (incorporated by reference to Registrant's Post-
Effective Amendment No. 5, December 23, 1985, and Registrant's
Post-Effective Amendment No. 17, December 20, 1991).
15. Rule 12b-1 Distribution Plan, incorporated by reference to
Registrant's Post-Effective Amendment No. 15, October 29, 1990 for
Class A Shares and, for Class B and C Shares, filed herewith.
16. Schedule for Computation of Performance Quotation (incorporated
by reference to Registrant's Post-Effective Amendment No. 13,
December 20, 1988).
17. Multiple-class plan pursuant to Investment Company Act of 1940
Rule 18f-3, filed herewith.
Exhibits 3, 12 and 13 are omitted because they are inapplicable.
Item 25. Persons Controlled By or Under Common Control With Registrant
Item 26. Number of Holders of Securities
As of February 28, 1998, there were 12,758 holders of record of
Registrant's Class A shares of beneficial interest for Calvert Social
Investment Fund Money Market Portfolio.
As of February 28, 1998, there were 37,269 holders of record of
Registrant's Class A shares of beneficial interest for Calvert Social
Investment Fund Managed Growth Portfolio.
As of February 28, 1998, there were 1,173 holders of record of
Registrant's Class C shares of beneficial interest for Calvert Social
Investment Fund Managed Growth Portfolio.
As of February 28, 1998, there were 5,154 holders of record of
Registrant's Class A shares of beneficial interest for Calvert Social
Investment Fund Bond Portfolio.
As of December 31, 1997, there were 14,555 holders of record of
Registrant's Class A shares of beneficial interest for Calvert Social
<PAGE>
Investment Fund Equity Portfolio.
As of December 31, 1997, there were 872 holders of record of
Registrant's Class C shares of beneficial interest for Calvert Social
Investment Fund Equity Portfolio.
Item 27. Indemnification
Registrant's Declaration of Trust, which Declaration is Exhibit 1 of this
Registration Statement, provides, in summary, that officers, trustees,
employees, and agents shall be indemnified by Registrant against liabilities and
expenses incurred by such persons in connection with actions, suits, or
proceedings arising out of their offices or duties of employment, except that no
indemnification can be made to such a person if he has been adjudged liable of
willful misfeasance, bad faith, gross negligence, or reckless disregard of his
duties. In the absence of such an adjudication, the determination of eligibility
for indemnification shall be made by independent counsel in a written opinion or
by the vote of a majority of a quorum of trustees who are neither "interested
persons" of Registrant, as that term is defined in Section 2(a)(19) of the
Investment Company Act of 1940, nor parties to the proceeding.
Registrant's Declaration of Trust also provides that Registrant may purchase and
maintain liability insurance on behalf of any officer, trustee, employee or
agent against any liabilities arising from such status. In this regard,
Registrant maintains a Directors & Officers (Partners) Liability Insurance
Policy with Chubb Group of Insurance Companies, 15 Mountain View Road, Warren,
New Jersey 07061, providing Registrant with $5 million in directors and officers
liability coverage, plus $3 million in excess directors and officers liability
coverage for the independent trustees/directors only. Registrant also maintains
an $8 million Investment Company Blanket Bond issued by ICI Mutual Insurance
Company, P.O. Box 730, Burlington, Vermont, 05402.
Item 28. Business and Other Connections of Investment Adviser
Name of Company, Principal
Name Business and Address Capacity
Barbara J. Krumsiek Acacia Capital Corporation Officer
Calvert Municipal Fund, Inc. and
Calvert World Values Fund, Inc. Director
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
First Variable Rate Fund for Officer
Government Income and
Calvert Tax-Free Reserves Trustee
Calvert Social Investment Fund
Calvert Cash Reserves
The Calvert Fund
<PAGE>
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Asset Management Co., Inc. Officer
Investment Advisor and
4550 Montgomery Avenue Director
Bethesda, Maryland 20814
----------------
Calvert Group, Ltd. Officer
Holding Company and
4550 Montgomery Avenue Director
Bethesda, Maryland 20814
----------------
Calvert Shareholder Services, Inc. Officer
Transfer Agent and
4550 Montgomery Avenue Director
Bethesda, Maryland 20814
---------------
Calvert Administrative Services Co. Officer
Service Company and
4550 Montgomery Avenue Director
Bethesda, Maryland 20814
---------------
Calvert Distributors, Inc. Officer
Broker-Dealer and
4550 Montgomery Avenue Director
Bethesda, Maryland 20814
---------------
Calvert-Sloan Advisers, LLC Director
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert New World Fund, Inc. Director
Investment Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
--------------
Alliance Capital Mgmt. L.P. Sr. Vice President
Mutual Fund Division Director
1345 Avenue of the Americas
New York, NY 10105
--------------
Ronald M. Wolfsheimer First Variable Rate Fund Officer
for Government Income
Calvert Tax-Free Reserves
Calvert Cash Reserves
Calvert Social Investment Fund
The Calvert Fund
Acacia Capital Corporation
<PAGE>
Calvert Municipal Fund, Inc.
Calvert World Values Fund, Inc.
Calvert New World Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
--------------
Calvert Asset Management Co., Inc. Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Group, Ltd. Officer
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Shareholder Services, Inc. Officer
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Administrative Services Co. Officer
Service Company and
4550 Montgomery Avenue Director
Bethesda, Maryland 20814
---------------
Calvert Distributors, Inc. Director
Broker-Dealer and
4550 Montgomery Avenue Officer
Bethesda, Maryland 20814
---------------
Calvert-Sloan Advisers, LLC Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
David R. Rochat First Variable Rate Fund Officer
for Government Income and
Calvert Tax-Free Reserves Trustee
Calvert Cash Reserves
The Calvert Fund
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Municipal Fund, Inc. Officer
Investment Company and
4550 Montgomery Avenue Director
Bethesda, Maryland 20814
<PAGE>
---------------
Calvert Asset Management Co., Inc. Officer
Investment Advisor and
4550 Montgomery Avenue Director
Bethesda, Maryland 20814
---------------
Chelsea Securities, Inc. Officer
Securities Firm and
Post Office Box 93 Director
Chelsea, Vermont 05038
---------------
Grady, Berwald & Co. Officer
Holding Company and
43A South Finley Avenue Director
Basking Ridge, NJ 07920
---------------
Reno J. Martini Calvert Asset Management Co., Inc. Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Group, Ltd. Officer
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
First Variable Rate Fund Officer
for Government Income
Calvert Tax-Free Reserves
Calvert Cash Reserves
Calvert Social Investment Fund
The Calvert Fund
Acacia Capital Corporation
Calvert Municipal Fund, Inc.
Calvert World Values Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert New World Fund, Inc. Director
Investment Company and
4550 Montgomery Avenue Officer
Bethesda, Maryland 20814
---------------
Calvert-Sloan Advisers, LLC Director
Investment Advisor and
4550 Montgomery Avenue Officer
Bethesda, Maryland 20814
---------------
<PAGE>
Charles T. Nason Acacia Mutual Life Insurance Officer
Acacia National Life Insurance and Director
Insurance Companies
7315 Wisconsin Avenue
Bethesda, Maryland 20814
---------------
Acacia Financial Corporation Officer
Holding Company and
7315 Wisconsin Avenue Director
Bethesda, Maryland 20814
---------------
Gardner Montgomery Company Director
Tax Return Preparation Services
7315 Wisconsin Avenue
Bethesda, Maryland 20814
----------------
Acacia Federal Savings Bank Director
Savings Bank
7600-B Leesburg Pike
Falls Church, Virginia 22043
---------------
Enterprise Resources, Inc. Director
Business Support Services
7315 Wisconsin Avenue
Bethesda, Maryland 20814
---------------
Acacia Insurance Management Officer
Services Corporation and
Service Corporation Director
7315 Wisconsin Avenue
Bethesda, Maryland 20814
---------------
Calvert Group, Ltd. Director
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Administrative Services Co. Director
Service Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Asset Management Co., Inc. Director
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Shareholder Services, Inc. Director
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Social Investment Fund Trustee
<PAGE>
Investment Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
-----------------
The Advisors Group, Inc. Director
Broker-Dealer and
Investment Advisor
7315 Wisconsin Avenue
Bethesda, Maryland 20814
---------------
Robert-John H. Acacia National Life Insurance Officer
Sands Insurance Company and
7315 Wisconsin Avenue Director
Bethesda, Maryland 20814
----------------
Acacia Mutual Life Insurance Officer
Insurance Company
7315 Wisconsin Avenue
Bethesda, Maryland 20814
----------------
Acacia Financial Corporation Officer
Holding Company and
7315 Wisconsin Avenue Director
Bethesda, Maryland 20814
----------------
Acacia Federal Savings Bank Officer
Savings Bank
7600-B Leesburg Pike
Falls Church, Virginia 22043
---------------
Enterprise Resources, Inc. Director
Business Support Services
7315 Wisconsin Avenue
Bethesda, Maryland 20814
---------------
Acacia Realty Corporation Officer
Real Estate Investments
7315 Wisconsin Avenue
Bethesda, Maryland 20814
---------------
Acacia Insurance Management Officer
Services Corporation and
Service Corporation Director
7315 Wisconsin Avenue
Bethesda, Maryland 20814
---------------
Gardner Montgomery Company Officer
Tax Return and
Preparation Services Director
7315 Wisconsin Avenue
Bethesda, Maryland 20814
----------------
<PAGE>
The Advisors Group, Inc. Director
Broker-Dealer and
Investment Advisor
7315 Wisconsin Avenue
Bethesda, Maryland 20814
---------------
Calvert Group, Ltd. Director
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Administrative Services Co. Director
Service Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Asset Management, Co., Inc. Director
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Shareholder Services, Inc. Director
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
William M. Tartikoff Acacia National Life Insurance Officer
Insurance Company
7315 Wisconsin Avenue
Bethesda, Maryland 20814
----------------
First Variable Rate Fund for Officer
Government Income
Calvert Tax-Free Reserves
Calvert Cash Reserves
Calvert Social Investment Fund
The Calvert Fund
Acacia Capital Corporation
Calvert Municipal Fund, Inc.
Calvert World Values Fund, Inc.
Calvert New World Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Group, Ltd. Officer
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Administrative Officer
Services Company
<PAGE>
Service Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Asset Management Co. Inc. Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Shareholder Services, Inc. Officer
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Distributors, Inc. Director
Broker-Dealer and
4550 Montgomery Avenue Officer
Bethesda, Maryland 20814
----------------
Calvert-Sloan Advisers, LLC Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Susan Walker Bender Calvert Group, Ltd. Officer
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Administrative Services Co. Officer
Service Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Asset Management Co., Inc. Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Shareholder Services, Inc. Officer
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Distributors, Inc. Officer
Broker-Dealer
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert-Sloan Advisers, LLC Officer
Investment Advisor
4550 Montgomery Avenue
<PAGE>
Bethesda, Maryland 20814
----------------
First Variable Rate Fund for Officer
Government Income
Calvert Tax-Free Reserves
Calvert Cash Reserves
Calvert Social Investment Fund
The Calvert Fund
Acacia Capital Corporation
Calvert Municipal Fund, Inc.
Calvert World Values Fund, Inc.
Calvert New World Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Katherine Stoner Calvert Group, Ltd. Officer
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Administrative Services Co. Officer
Service Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Asset Management Co., Inc. Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Shareholder Services, Inc. Officer
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Distributors, Inc. Officer
Broker-Dealer
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert-Sloan Advisers, LLC Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
First Variable Rate Fund for Officer
Government Income
Calvert Tax-Free Reserves
Calvert Cash Reserves
Calvert Social Investment Fund
<PAGE>
The Calvert Fund
Acacia Capital Corporation
Calvert Municipal Fund, Inc.
Calvert World Values Fund, Inc.
Calvert New World Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Lisa Crossley Newton Calvert Group, Ltd. Officer
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Administrative Services Co. Officer
Service Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Asset Management Co., Inc. Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Shareholder Services, Inc. Officer
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Distributors, Inc. Officer
Broker-Dealer
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert-Sloan Advisers, LLC Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
First Variable Rate Fund for Officer
Government Income
Calvert Tax-Free Reserves
Calvert Cash Reserves
Calvert Social Investment Fund
The Calvert Fund
Acacia Capital Corporation
Calvert Municipal Fund, Inc.
Calvert World Values Fund, Inc.
Calvert New World Fund, Inc.
Investment Companies
<PAGE>
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Ivy Wafford Duke Calvert Group, Ltd. Officer
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Administrative Services Co. Officer
Service Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Asset Management Co., Inc. Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Shareholder Services, Inc. Officer
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Distributors, Inc. Officer
Broker-Dealer
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert-Sloan Advisers, LLC Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
First Variable Rate Fund for Officer
Government Income
Calvert Tax-Free Reserves
Calvert Cash Reserves
Calvert Social Investment Fund
The Calvert Fund
Acacia Capital Corporation
Calvert Municipal Fund, Inc.
Calvert World Values Fund, Inc.
Calvert New World Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Daniel K. Hayes Calvert Asset Management Co., Inc. Officer
Investment Advisor
<PAGE>
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
First Variable Rate Fund for Officer
Government Income
Calvert Tax-Free Reserves
Calvert Cash Reserves
Calvert Social Investment Fund
The Calvert Fund
Acacia Capital Corporation
Calvert Municipal Fund, Inc.
Calvert World Values Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Steve Van Order Calvert Asset Management Officer
Company, Inc.
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Annette Krakovitz Calvert Asset Management Officer
Company, Inc.
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
John Nichols Calvert Asset Management Officer
Company, Inc.
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
David Leach Calvert Asset Management Officer
Company, Inc.
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Matthew D. Gelfand Calvert Asset Management Officer
Company, Inc.
Investment Advisor
<PAGE>
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Strategic Investment Management Officer
Investment Advisor
1001 19th Street North
Arlington, Virginia 20009
------------------
Item 29. Principal Underwriters
(a) Registrant's principal underwriter also underwrites shares of First
Variable Rate Fund for Government Income, Calvert Tax-Free Reserves, Calvert
Cash Reserves, The Calvert Fund, Calvert Municipal Fund, Inc., Calvert World
Values Fund, Inc., Calvert New World Fund, Inc., and Acacia Capital Corporation.
(b) Positions of Underwriter's Officers and Directors
Name and Principal Position(s) with Position(s) with
Business Address Underwriter Registrant
Barbara J. Krumsiek Director and President Sr. Vice President
and Trustee
Ronald M. Wolfsheimer Director, Senior Vice Treasurer
President and Chief Financial
Officer
William M. Tartikoff Director, Senior Vice Vice President and
President and Secretary Assistant Secretary
Craig Cloyed Senior Vice President None
Karen Becker Vice President, Operations None
Steve Cohen Vice President None
Geoffrey Ashton Regional Vice President None
Martin Brown Regional Vice President None
Janet Haley Regional Vice President None
Ben Ogbogu Regional Vice President None
Susan Walker Bender Assistant Secretary Assistant Secretary
Katherine Stoner Assistant Secretary Assistant Secretary
Lisa Crossley Newton Assistant Secretary Assistant Secretary
and Compliance Officer
Ivy Wafford Duke Assistant Secretary Assistant Secretary
<PAGE>
(c) Inapplicable.
Item 30. Location of Accounts and Records
Ronald M. Wolfsheimer, Treasurer
and
William M. Tartikoff, Assistant Secretary
4550 Montgomery Avenue, Suite 1000N
Bethesda, Maryland 20814
Item 31. Management Services
Not Applicable
Item 32. Undertakings
a) Not Applicable
b) Not Applicable
(c) The Registrant undertakes to furnish to each person to whom a
Prospectus is delivered, a copy of the Registrant's latest Annual
Report to Shareholders, upon request and without charge.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the Investment
Company Act of 1940, the Registrant certifies that it meets all of the
requirements for effectiveness of this registration statement pursuant to Rule
485(b) under the Securities Act of 1933 and has duly caused this registration
statement to be signed on its behalf by the undersigned, thereto duly authorized
in the City of Bethesda, and State of Maryland, on the 27th day of March, 1998.
CALVERT SOCIAL INVESTMENT FUND
By: **
_________________________________
Barbara J. Krumsiek
Senior Vice President and Trustee
SIGNATURES
<PAGE>
Pursuant to the requirements of the Securities Act of 1933, this Registration
Statement has been signed below by the following persons in the capacities
indicated.
Signature Title Date
__________**____________ President and 3/27/98
D. Wayne Silby Trustee (Principal
Executive Officer)
__________**____________ Executive Vice 3/27/98
John G. Guffey, Jr. President and Trustee
__________**____________ Senior Vice President 3/27/98
Barbara J. Krumsiek and Trustee
__________**____________ Principal Accounting 3/27/98
Ronald M. Wolfsheimer Officer
__________**____________ Trustee 3/27/98
Rebecca L. Adamson
__________**____________ Trustee 3/27/98
Richard L. Baird, Jr.
________________________ Trustee 3/27/98
Joy V. Jones
__________**____________ Trustee 3/27/98
Terrence J. Mollner
__________**____________ Trustee 3/27/98
Sydney Amara Morris
__________**____________ Trustee 3/27/98
Charles T. Nason
**
Signed by Katherine Stoner pursuant to power of attorney, attached hereto.
<PAGE>
DISTRIBUTION AGREEMENT
This DISTRIBUTION AGREEMENT, dated as of February 25, 1998 by and between
EACH CALVERT FUND LISTED IN THE SCHEDULE OF FUNDS ATTACHED HERETO AS SCHEDULE I
(each a "Fund" and together the "Funds"), as such schedule may, from time to
time be amended, and CALVERT DISTRIBUTORS, INC., a Delaware corporation (the
"Distributor").
WHEREAS, each Fund is registered as an open-end investment company under
the Investment Company Act of 1940 (the "1940 Act") and has registered its
shares, including shares of its series portfolios (the "Series"), for sale to
the public under the Securities Act of 1933 (the "1933 Act") and various state
securities laws;
WHEREAS, each Fund wishes to retain the Distributor as the principal
underwriter in connection with the offer and sale of shares of the Series (the
"Shares") and to furnish certain other services to the Series as specified in
this Agreement;
WHEREAS, this contract has been approved by the Trustees/Directors of each
Fund in anticipation of the Distributor's transfer of its rights to receive the
Class B Distribution Fees ( as defined in the Distribution Plan for Class B and
C Shares (the "Distribution Plan")) and/or Class B contingent deferred sales
charges to a financing party in order to raise funds to cover distribution
expenditures; and
WHEREAS, the Distributor is willing to act as principal underwriter and to
furnish such services on the terms and conditions hereinafter set forth;
NOW, THEREFORE, in consideration of the promises and mutual covenants
herein contained, it is agreed as follows:
1. Each Fund hereby appoints the Distributor as principal underwriter in
connection with the offer and sale of its Shares. The Distributor shall, as
agent for each Fund, subject to applicable federal and state law and the
Declaration of Trust or Articles of Incorporation, and By-laws of the applicable
Fund and in accordance with the representations in the applicable Fund's
Registration Statement and Prospectus, as such documents may be amended from
time to time: (a) promote the Series; (b) enter into appropriate dealer
agreements with other registered broker-dealers to further distribution of the
Shares; (c) solicit orders for the purchase of the Shares subject to such terms
and conditions as the applicable Fund may specify; (d) transmit promptly orders
and payments for the purchase of Shares and orders for redemption of Shares to
the applicable Fund's transfer agent; and (e) provide services agreed upon by
the applicable Fund to Series shareholders; provided, however, that the
Distributor may sell no Shares pursuant to this Agreement until the Distributor
is notified that a Fund's Registration Statement under the 1933 Act, authorizing
the sale of such Shares through the Distributor, has become effective. The
Distributor shall comply with all applicable federal and state laws and offer
the Shares on an agency or "best efforts" basis under which a Fund shall only
issue such Shares as are actually sold.
2. The public offering price of the Shares shall be the net asset value
("NAV") per share (as determined by the applicable Fund) of the outstanding
Shares of the Series, plus the applicable sales charge, if any, as set forth in
the Fund's then current Prospectus. Each Fund shall furnish the Distributor with
a statement of each computation of NAV and of the details entering into such
computation.
3. COMPENSATION.
a. DISTRIBUTION FEE.
i. CLASS A. In consideration of the Distributor's services as distributor
for the Class A Shares of a Fund, each Fund may pay to the Distributor the
Distribution Fee as set forth in Schedule II to this Agreement that is payable
pursuant to the Fund's Distribution Plan.
-1-
<PAGE>
ii. CLASS B. In consideration of the Distributor's services as distributor
for the Class B Shares of a Fund, each Fund shall pay to the Distributor (or its
designee or transferee) the Distributor's Allocable Portion of the Distribution
Fee; (as set forth in Schedule II to this Agreement) that is payable pursuant to
the Fund's Distribution Plan in respect of the Class B Shares of a Fund. For
purposes of this Agreement, the Distributor's "Allocable Portion" of the
Distribution Fee shall be 100% of such Distribution Fee unless or until the Fund
uses a principal underwriter other than the Distributor and thereafter the
Allocable Portion shall be the portion of the Distribution Fee attributable to
(i) Class B Shares of a Fund sold by the Distributor ("Commission Shares"), (ii)
Class B Shares of the Fund issued in connection with the exchange of Commission
Shares of another Fund, and (iii) Class B Shares of the Fund issued in
connection with the reinvestment of dividends and capital gains.
The Distributor's Allocable Portion of the Distribution Fee and the
contingent deferred sales charges arising in respect of Class B Shares taken
into account in computing the Distributor's Allocable Portion shall be limited
under Rule 2830 of the Conduct Rules or other applicable regulations of the NASD
as if the Class B Shares taken into account in computing the Distributor's
Allocable Portion themselves constituted a separate class of shares of a Fund.
The services rendered by the Distributor for which the Distributor is
entitled to receive the Distributor's Allocable Portion of the Distribution Fee
shall be deemed to have been completed at the time of the initial purchase of
the Commission Shares (whether of the Fund or another Fund in the Calvert Group
of Funds) taken into account in computing the Distributor's Allocable Portion.
Notwithstanding anything to the contrary in this Agreement, the Distributor
shall be paid its Allocable Portion of the Distribution Fee notwithstanding the
Distributor's termination as principal underwriter of the Class B Shares of a
Fund, or any termination of this Agreement other than in connection with a
Complete Termination (as defined in the Distribution Plan) of the Class B
Distribution Plan as in effect on the date of this Agreement. Except as provided
in the preceding sentence, a Fund's obligation to pay the Distribution Fee to
the Distributor shall be absolute and unconditional and shall not be subject to
any dispute, offset, counterclaim or defense whatsoever, (it being understood
that nothing in this sentence shall be deemed a waiver by a Fund of its right
separately to pursue any claims it may have against the Distributor and to
enforce such claims against any assets (other than its rights to be paid its
Allocable Portion of the Distribution Fee and to be paid the contingent deferred
sales charges) of the Distributor.
iii. CLASS C. In consideration of the Distributor's services as distributor
for the Class C Shares of a Fund, each Fund shall pay to the Distributor the
Distribution Fee as set forth in Schedule II to this Agreement that is payable
pursuant to the Fund's Distribution Plan.
b. SERVICE FEE. As additional compensation, for Class A, Class B and
Class C Shares of each Series, applicable Funds shall pay the Distributor a
service fee (as that term is defined by the National Association of Securities
Dealers, Inc. ("NASD")) as set forth in Schedule III to this Agreement that is
payable pursuant to the Fund's Distribution Plan.
c. FRONT-END SALES CHARGES. As additional compensation for the services
performed and the expenses assumed by the Distributor under this Agreement, the
Distributor may, in conformity with the terms and conditions set forth in the
then current Prospectus of each Fund, impose and retain for its own account the
amount of the front-end sales charge, if any, and may reallow a portion of any
front-end sales charge to other broker-dealers, all in accordance with NASD
rules.
d. CONTINGENT DEFERRED SALES CHARGE. Each Fund will pay to the
Distributor (or its designee or transferee) in addition to the fees set forth in
Section 3 hereof any contingent deferred sales charge imposed on redemptions of
that Fund's Class B and Class C Shares upon the terms and conditions set forth
in the then current Prospectus of that Fund. Notwithstanding anything to the
contrary in this Agreement, the Distributor shall be paid such contingent
deferred sales charges in respect of Class B Shares taken into account in
computing the Distributor's Allocable Portion of the Distribution Fee
notwithstanding the Distributor's termination as principal underwriter of the
Class B shares of a Fund or any termination of this Agreement other than in
connection with a Complete Termination of the Class B Distribution Plan as in
effect on the date of this Agreement. Except as provided in the preceding
sentence, a Fund's obligation to remit such contingent deferred sales charges to
the Distributor shall not
-2-
<PAGE>
be subject to any dispute, offset, counterclaim or defense whatsoever, it being
understood that nothing in this sentence shall be deemed a waiver by a Fund of
its right separately to pursue any claims it may have against the Distributor
and to enforce such claims against any assets (other than the Distributor's
right to be paid its Allocable Portion of the Distribution Fee and to be paid
the contingent deferred sales charges) of the Distributor. No Fund will waive
any contingent deferred sales charge except under the circumstances set forth in
the Fund's current Prospectus without the consent of the Distributor (or, if
rights to payment have been transferred, the transferee), which consent shall
not be unreasonably withheld.
4. PAYMENTS TO DISTRIBUTOR'S TRANSFEREES. The Distributor may transfer
the right to payments hereunder (but not its obligations hereunder) in order to
raise funds to cover distribution expenditures, and any such transfer shall be
effective upon written notice from the Distributor to the Fund. In connection
with the foregoing, the Fund is authorized to pay all or a part of the
Distribution Fee and/or contingent deferred sales charges in respect of Class B
Shares directly to such transferee as directed by the Distributor.
5. CHANGES IN COMPUTATION OF FEE, ETC. As long as the Class B
Distribution Plan is in effect, a Fund shall not change the manner in which the
Class B Distribution Fee is computed (except as may be required by a change in
applicable law or a change in accounting policy adopted by the Investment
Companies Committee of the AICPA and approved by FASB that results in a
determination by a Fund's independent accountants that any of the sales charges
in respect of such Fund, which are not contingent deferred sales charges and
which are not yet due and payable, must be accounted for by such Fund as a
liability in accordance with GAAP).
6. As used in this Agreement, the term "Registration Statement" shall
mean the registration statement most recently filed by a Fund with the
Securities and Exchange Commission and effective under the 1933 Act, as such
Registration Statement is amended by any amendments thereto at the time in
effect, and the term "Prospectus" shall mean the form of prospectus filed by a
Fund as part of the Registration Statement.
7. The Distributor shall print and distribute to prospective investors
Prospectuses, and may print and distribute such other sales literature, reports,
forms, and advertisements in connection with the sale of the Shares as comply
with the applicable provisions of federal and state law. In connection with such
sales and offers of sale, the Distributor shall give only such information and
make only such statements or representations, and require broker-dealers with
whom it enters into dealer agreements to give only such information and make
only such statements or representations, as are contained in the Prospectus or
in information furnished in writing to the Distributor by a Fund. The Funds
shall not be responsible in any way for any other information, statements or
representations given or made by the Distributor, other broker-dealers, or the
representatives or agents of the Distributor or such broker-dealers. Except as
specifically permitted under the Distribution Plan under Rule 12b-1 under the
1940 Act, as provided in paragraph 3 of this Agreement, the Funds shall bear
none of the expenses of the Distributor in connection with its offer and sale of
the Shares.
8. Each Fund agrees at its own expense to register the Shares with the
Securities and Exchange Commission, state and other regulatory bodies, and to
prepare and file from time to time such Prospectuses, amendments, reports and
other documents as may be necessary to maintain the Registration Statement. Each
Fund shall bear all expenses related to preparing and typesetting its
Prospectus(es) and other materials required by law and such other expenses,
including printing and mailing expenses related to the Fund's communications
with persons who are shareholders of such Fund.
9. Each Fund agrees to indemnify, defend and hold the Distributor, its
several officers and directors, and any person who controls the Distributor
within the meaning of Section 15 of the 1933 Act, free and harmless from and
against any and all claims, demands, liabilities and expenses (including the
cost of investigating or defending such claims, demands or liabilities and any
counsel fees incurred in connection therewith) which the Distributor, its
officers or directors, or any such controlling person may incur, under the 1933
Act or under common law or otherwise, arising out of or based upon any alleged
untrue statement of a material fact contained in its Registration Statement or
Prospectus or arising out of or based upon any alleged omission to state a
material fact required to be stated in either thereof or necessary to make the
statements in either thereof not misleading, provided that in no event shall
anything contained in this Agreement be construed so as to protect the
Distributor against any
-3-
<PAGE>
liability to a Fund or its shareholders to which the Distributor would
otherwise be subject by reason of willful misfeasance, bad faith, or gross
negligence, in the performance of its duties, or by reason of its reckless
disregard of its obligations and duties under this Agreement.
10. The Distributor agrees to indemnify, defend and hold each Fund, their
several officers and directors, and any person who controls a Fund within the
meaning of Section 15 of the 1933 Act, free and harmless from and against any
and all claims, demands, liabilities and expenses (including the cost of
investigating or defending such claims, demands or liabilities and any counsel
fees incurred in connection therewith) which a Fund, its officers or directors,
or any such controlling person may incur, under the 1933 Act or under common law
or otherwise, arising out of or based upon any alleged untrue statement or a
material fact contained in information furnished in writing by the Distributor
to the Funds for use in the Registration Statement or Prospectus(es) or arising
out of or based upon any alleged omission to state a material fact in connection
with such information required to be stated in the Registration Statement or
Prospectus(es) or necessary to make such information not misleading.
11. Each Fund reserves the right at any time to withdraw all offerings of
the Shares by written notice to the Distributor at its principal office.
12. The Distributor is an independent contractor and shall be agent for a
Fund only in respect to the offer, sale and redemption of that Fund's Shares.
13. The services of the Distributor to a Fund under this Agreement are not
to be deemed exclusive, and the Distributor shall be free to render similar
services or other services to others so long as its services hereunder are not
impaired thereby.
14. The Distributor acknowledges that it has received notice of and
accepts the limitations upon the liability of any Fund organized as a business
trust set forth in such Fund's Declaration of Trust. The Distributor agrees that
the obligations of such Funds hereunder in any case shall be limited to such
Funds and to their assets and that the Distributor shall not seek satisfaction
of any such obligation from the shareholders of such a Fund nor from any
Trustee, officer, employee or agent of such Fund.
15. The Funds shall not use the name of the Distributor in any Prospectus,
sales literature or other material relating to the Funds in any manner not
approved prior thereto by the Distributor; provided, however, that the
Distributor shall approve all uses of its name which merely refer in accurate
terms to its appointment hereunder or which are required by the Securities and
Exchange Commission or a State Securities Commission; and, provided further,
that in no event shall such approval be unreasonably withheld. The Distributor
shall not use the name of any Fund in any material relating to the Distributor
in any manner not approved prior thereto by the Fund; provided, however that the
Funds shall approve all uses of their names which merely refer in accurate terms
to the appointment of the Distributor hereunder or which are required by the
Securities and Exchange Commission or a State Securities Commission; and,
provided further, that in no event shall such approval be unreasonably withheld.
16. The Distributor shall prepare written reports for the Board of
Trustees/Directors of each Fund on a quarterly basis showing information
concerning services provided and expenses incurred which are related to this
Agreement and such other information as from time to time shall be reasonably
requested by a Fund's Board of Trustees/Directors.
17. As used in this Agreement, the terms "assignment," "interested
person," and "majority of the outstanding voting securities" shall have the
meaning given to them by Section 2(a) of the 1940 Act, subject to such
exemptions as may be granted by the Securities and Exchange Commission by any
rule, regulation or order; provided, however that, in order to obtain financing,
the Distributor may assign to a lending institution the payments due to the
Distributor under this Agreement without it constituting an assignment of the
Agreement.
18. Subject to the provisions of sections 19 and 20 below, this Agreement
will remain in effect for two years from the date of is execution and from year
to year thereafter, provided that the Distributor does not notify a Fund in
writing at least sixty (60) days prior to the expiration date in any year that
it does not wish
-4-
<PAGE>
continuance of the Agreement as to such Fund for an additional year.
19. TERMINATION. As to any particular Fund (or Series thereof), this
Agreement shall automatically terminate in the event of its assignment and may
be terminated at any time without the payment of any penalty by a Fund or by the
Distributor on sixty (60) days' written notice to the other party. A Fund may
effect such termination by a vote of (i) a majority of the Board of
Trustees/Directors of the Fund, (ii) a majority of the Trustees/Directors who
are not interested persons of the Fund, who are not parties to this Agreement or
interested persons of such parties, and who have no direct or indirect financial
interest in the operation of the Distribution Plan, in this Agreement or in any
agreement related to such Fund's Distribution Plan (the "Rule 12b-1
Trustees/Directors"), or (iii) a majority of the outstanding voting securities
of the relevant Series.
20. This Agreement shall be submitted for renewal to the Board of
Trustees/Directors of each Fund at least annually and shall continue in effect
only so long as specifically approved at least annually (i) by a majority vote
of the Fund's Board of Trustees/Directors, and (ii) by the vote of the majority
of the Rule 12b-1 Trustees/Directors of the Fund, cast in person at a meeting
called for the purpose of voting on such approval.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed on the date first above written by their officers thereunto duly
authorized.
Attest: EACH FUND LISTED IN THE
ATTACHED SCHEDULE I
By: /s/ Edwidge Saint-Felix By: /s/ William M. Tartikoff
Vice President
Attest: CALVERT DISTRIBUTORS, INC.
By: /s/ Edwidge Saint-Felix By: /s/ Ronald M. Wolfsheimer
Senior Vice President
-5-
<PAGE>
SCHEDULE I
The Calvert Fund
Calvert Tax-Free Reserves
Calvert Municipal Fund
Calvert Social Investment Fund
Calvert World Values Fund
Calvert New World Fund
First Variable Rate Fund
-6-
<PAGE>
SCHEDULE II
Fees are expressed as a percentage of average annual daily net assets, and are
payable monthly.
DISTRIBUTION FEE
<TABLE>
<CAPTION>
Class A* Class B Class C Class I
<S> <C> <C> <C> <C>
The Calvert Fund
New Vision Small Cap Fund N/A 0.75 0.75 N/A
Calvert Income Fund 0.25 0.75 0.75 N/A
Calvert Tax-Free Reserves
Money Market Portfolio N/A N/A N/A N/A
Limited-Term Portfolio N/A N/A N/A N/A
Long-Term Portfolio 0.10 0.75 0.75 N/A
California Money Market Port. N/A N/A N/A N/A
Vermont Municipal N/A 0.75 0.75 N/A
Calvert Municipal Fund
National Intermediate Fund N/A 0.75 N/A N/A
California Intermediate Fund N/A 0.75 N/A N/A
Maryland Intermediate Fund N/A 0.75 N/A N/A
Virginia Intermediate Fund N/A 0.75 N/A N/A
Calvert Social Investment Fund
Managed Growth Portfolio 0.10 0.75 0.75 N/A
Equity Portfolio 0.10 0.75 0.75 N/A
Bond Portfolio 0.10 0.75 0.75 N/A
Managed Index Portfolio N/A 0.75 0.75 N/A
Money Market Portfolio N/A N/A N/A N/A
Calvert World Values Fund
Capital Accumulation Fund 0.10 0.75 0.75 N/A
International Equity Fund 0.10 0.75 0.75 N/A
Calvert New World Fund
Calvert New Africa Fund N/A 0.75 0.75 N/A
First Variable Rate Fund
Calvert First Gov't Money Mkt N/A 0.75 N/A N/A
</TABLE>
*Distributor reserves the right to waive all or a portion of the distribution
fee from time to time.
DATED: February 1998
-7-
<PAGE>
SCHEDULE III
Fees are expressed as a percentage of average annual daily net assets and are
payable monthly.
SERVICE FEE
<TABLE>
<CAPTION>
Class A* Class B Class C Class I
<S> <C> <C> <C> <C>
The Calvert Fund
New Vision Small Cap Fund 0.25 0.25 0.25 N/A
Calvert Income Fund 0.25 0.25 0.25 N/A
Calvert Tax-Free Reserves
Money Market Portfolio N/A N/A N/A N/A
Limited-Term Portfolio N/A N/A N/A N/A
Long-Term Portfolio 0.25 0.25 0.25 N/A
California Money Market Port. N/A N/A N/A N/A
Vermont Municipal N/A 0.25 0.25 N/A
Calvert Municipal Fund
National Intermediate Fund 0.25 0.25 N/A N/A
California Intermediate Fund 0.25 0.25 N/A N/A
Maryland Intermediate Fund 0.25 0.25 N/A N/A
Virginia Intermediate Fund 0.25 0.25 N/A N/A
Calvert Social Investment Fund
Managed Growth Portfolio 0.25 (+) 0.25 0.25 N/A
Equity Portfolio 0.25 0.25 0.25 N/A
Bond Portfolio 0.25 0.25 0.25 N/A
Managed Index Portfolio 0.25 0.25 0.25 N/A
Money Market Portfolio 0.25 N/A N/A N/A
Calvert World Values Fund
Capital Accumulation Fund 0.25 0.25 0.25 N/A
International Equity Fund 0.25 0.25 0.25 N/A
Calvert New World Fund
Calvert New Africa Fund 0.25 0.25 0.25 N/A
First Variable Rate Fund
Calvert First Gov't Money Mkt N/A 0.25 N/A N/A
</TABLE>
DATED: February 1998
- ------------------------------
* Distributor reserves the right to waive all or a portion of the service fees
from time to time. For money market portfolios, Class A shall refer to Class O,
or if the portfolio does not have multiple classes, then to the portfolio
itself.
+ Distributor charges the service fee only on assets in excess of $30 million.
-8-
<PAGE>
March 27, 1998
Securities and Exchange Commission
Judiciary Plaza
450 Fifth Street, N.W.
Washington, D.C. 20549
Re: Exhibit 23, Form N-1A
Calvert Social Investment Fund
2-75106 and 811-3334
Ladies and Gentlemen:
As counsel to Calvert Group, Ltd., it is my opinion that the securities
being registered by this Post-effective Amendment No. 27 will be legally issued,
fully paid and non-assessable when sold. My opinion is based on an examination
of documents related to Calvert Social Investment Fund (the "Trust"), including
its Declaration of Trust, its By-laws, other original or Photostat copies of
Trust records, certificates of public officials, documents, papers, statutes,
and authorities as deemed necessary to form the basis of this opinion.
Therefore, I consent to filing this opinion of counsel with the Securities
and Exchange Commission as an Exhibit to the Trust's Post-Effective Amendment
No. 27 to its Registration Statement.
Sincerely,
/s/ Susan Walker Bender
Susan Walker Bender
Associate General Counsel
<PAGE>
CONSENT OF INDEPENDENT ACCOUNTANTS
To the Board of Trustees of Calvert Social Investment Fund
We consent to the incorporation by reference in Post-Effective Amendment No. 27
to the Registration Statement of Calvert Social Investment Fund on Form N-1A
(File Numbers 2-75106 and 811-3334) of our report dated November 7, 1997 on our
audit of the financial statements and financial highlights of Money Market,
Managed Growth, Bond and Equity Portfolios, which report is included in the
Annual Report to Shareholders for the year ended September 30, 1997 which is
incorporated by reference in the Registration Statement. We also consent to the
reference to our firm under the caption "Independent Accountants and Custodians"
in the Statement of Additional Information.
COOPERS & LYBRAND L.L.P.
Baltimore, Maryland
March 20, 1998
<PAGE>
POWER OF ATTORNEY
I, the undersigned Trustee/Director of Calvert Social Investment Fund (the
"Fund"), hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff, Susan
Walker Bender, Katherine Stoner, Lisa Crossley, and Ivy Wafford Duke my true and
lawful attorneys, with full power to each of them, to sign for me and in my name
in the appropriate capacities, all registration statements and amendments filed
by the Fund with any federal or state agency, and to do all such things in my
name and behalf necessary for registering and maintaining registration or
exemptions from registration of the Fund with any government agency in any
jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things in my name
and behalf to comply with the provisions of all federal, state and foreign laws,
regulations, and policy pronouncements affecting the Fund, including, but not
limited to, the Securities Act of 1933, the Securities Exchange Act of 1934, the
Investment Company Act of 1940, the Investment Advisers Act of 1940, and all
state laws regulating the securities industry.
The same persons are further authorized to sign my name to any document
needed to maintain the lawful operation of the Fund in connection with any
transaction approved by the Board of Trustee/Directors.
When any of the above-referenced attorneys signs my name to any document in
connection with maintaining the lawful operation of the Fund, the signing is
automatically ratified and confirmed by me by virtue of this Power of Attorney.
WITNESS my hand on the date set forth below.
December 2, 1997
Date /Signature/
Cathy Mulligan Barbara Krumsiek
Witness Name of Trustee/Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Trustee/Director of Calvert Social Investment Fund (the
"Fund"), hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff, Susan
Walker Bender, Katherine Stoner, Lisa Crossley, and Ivy Wafford Duke my true and
lawful attorneys, with full power to each of them, to sign for me and in my name
in the appropriate capacities, all registration statements and amendments filed
by the Fund with any federal or state agency, and to do all such things in my
name and behalf necessary for registering and maintaining registration or
exemptions from registration of the Fund with any government agency in any
jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things in my name
and behalf to comply with the provisions of all federal, state and foreign laws,
regulations, and policy pronouncements affecting the Fund, including, but not
limited to, the Securities Act of 1933, the Securities Exchange Act of 1934, the
Investment Company Act of 1940, the Investment Advisers Act of 1940, and all
state laws regulating the securities industry.
The same persons are further authorized to sign my name to any document
needed to maintain the lawful operation of the Fund in connection with any
transaction approved by the Board of Trustee/Directors.
When any of the above-referenced attorneys signs my name to any document in
connection with maintaining the lawful operation of the Fund, the signing is
automatically ratified and confirmed by me by virtue of this Power of Attorney.
WITNESS my hand on the date set forth below.
December 6, 1997
Date /Signature/
Ida Maupin Findlay Rebecca L. Adamson
Witness Name of Trustee/Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Trustee/Director of Calvert Social Investment Fund (the
"Fund"), hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff, Susan
Walker Bender, Katherine Stoner, Lisa Crossley, and Ivy Wafford Duke my true and
lawful attorneys, with full power to each of them, to sign for me and in my name
in the appropriate capacities, all registration statements and amendments filed
by the Fund with any federal or state agency, and to do all such things in my
name and behalf necessary for registering and maintaining registration or
exemptions from registration of the Fund with any government agency in any
jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things in my name
and behalf to comply with the provisions of all federal, state and foreign laws,
regulations, and policy pronouncements affecting the Fund, including, but not
limited to, the Securities Act of 1933, the Securities Exchange Act of 1934, the
Investment Company Act of 1940, the Investment Advisers Act of 1940, and all
state laws regulating the securities industry.
The same persons are further authorized to sign my name to any document
needed to maintain the lawful operation of the Fund in connection with any
transaction approved by the Board of Trustee/Directors.
When any of the above-referenced attorneys signs my name to any document in
connection with maintaining the lawful operation of the Fund, the signing is
automatically ratified and confirmed by me by virtue of this Power of Attorney.
WITNESS my hand on the date set forth below.
May 7, 1997
Date /Signature/
Charles T. Nason Richard L. Baird, Jr.
Witness Name of Trustee/Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Trustee/Director of Calvert Social Investment Fund (the
"Fund"), hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff, Susan
Walker Bender, Katherine Stoner, Lisa Crossley, and Ivy Wafford Duke my true and
lawful attorneys, with full power to each of them, to sign for me and in my name
in the appropriate capacities, all registration statements and amendments filed
by the Fund with any federal or state agency, and to do all such things in my
name and behalf necessary for registering and maintaining registration or
exemptions from registration of the Fund with any government agency in any
jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things in my name
and behalf to comply with the provisions of all federal, state and foreign laws,
regulations, and policy pronouncements affecting the Fund, including, but not
limited to, the Securities Act of 1933, the Securities Exchange Act of 1934, the
Investment Company Act of 1940, the Investment Advisers Act of 1940, and all
state laws regulating the securities industry.
The same persons are further authorized to sign my name to any document
needed to maintain the lawful operation of the Fund in connection with any
transaction approved by the Board of Trustee/Directors.
When any of the above-referenced attorneys signs my name to any document in
connection with maintaining the lawful operation of the Fund, the signing is
automatically ratified and confirmed by me by virtue of this Power of Attorney.
WITNESS my hand on the date set forth below.
May 7, 1997
Date /Signature/
M. Charito Kruvant John G. Guffey, Jr.
Witness Name of Trustee/Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Trustee/Director of Calvert Social Investment Fund (the
"Fund"), hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff, Susan
Walker Bender, Katherine Stoner, Lisa Crossley, and Ivy Wafford Duke my true and
lawful attorneys, with full power to each of them, to sign for me and in my name
in the appropriate capacities, all registration statements and amendments filed
by the Fund with any federal or state agency, and to do all such things in my
name and behalf necessary for registering and maintaining registration or
exemptions from registration of the Fund with any government agency in any
jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things in my name
and behalf to comply with the provisions of all federal, state and foreign laws,
regulations, and policy pronouncements affecting the Fund, including, but not
limited to, the Securities Act of 1933, the Securities Exchange Act of 1934, the
Investment Company Act of 1940, the Investment Advisers Act of 1940, and all
state laws regulating the securities industry.
The same persons are further authorized to sign my name to any document
needed to maintain the lawful operation of the Fund in connection with any
transaction approved by the Board of Trustee/Directors.
When any of the above-referenced attorneys signs my name to any document in
connection with maintaining the lawful operation of the Fund, the signing is
automatically ratified and confirmed by me by virtue of this Power of Attorney.
WITNESS my hand on the date set forth below.
November 29, 1997
Date /Signature/
Marybeth Home Terrence J. Mollner
Witness Name of Trustee/Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Trustee/Director of Calvert Social Investment Fund (the
"Fund"), hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff, Susan
Walker Bender, Katherine Stoner, Lisa Crossley, and Ivy Wafford Duke my true and
lawful attorneys, with full power to each of them, to sign for me and in my name
in the appropriate capacities, all registration statements and amendments filed
by the Fund with any federal or state agency, and to do all such things in my
name and behalf necessary for registering and maintaining registration or
exemptions from registration of the Fund with any government agency in any
jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things in my name
and behalf to comply with the provisions of all federal, state and foreign laws,
regulations, and policy pronouncements affecting the Fund, including, but not
limited to, the Securities Act of 1933, the Securities Exchange Act of 1934, the
Investment Company Act of 1940, the Investment Advisers Act of 1940, and all
state laws regulating the securities industry.
The same persons are further authorized to sign my name to any document
needed to maintain the lawful operation of the Fund in connection with any
transaction approved by the Board of Trustee/Directors.
When any of the above-referenced attorneys signs my name to any document in
connection with maintaining the lawful operation of the Fund, the signing is
automatically ratified and confirmed by me by virtue of this Power of Attorney.
WITNESS my hand on the date set forth below.
May 7, 1997
Date /Signature/
Edwidge Saint Felix Sydney Amara Morris
Witness Name of Trustee/Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Trustee/Director of Calvert Social Investment Fund (the
"Fund"), hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff, Susan
Walker Bender, Katherine Stoner, Lisa Crossley, and Ivy Wafford Duke my true and
lawful attorneys, with full power to each of them, to sign for me and in my name
in the appropriate capacities, all registration statements and amendments filed
by the Fund with any federal or state agency, and to do all such things in my
name and behalf necessary for registering and maintaining registration or
exemptions from registration of the Fund with any government agency in any
jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things in my name
and behalf to comply with the provisions of all federal, state and foreign laws,
regulations, and policy pronouncements affecting the Fund, including, but not
limited to, the Securities Act of 1933, the Securities Exchange Act of 1934, the
Investment Company Act of 1940, the Investment Advisers Act of 1940, and all
state laws regulating the securities industry.
The same persons are further authorized to sign my name to any document
needed to maintain the lawful operation of the Fund in connection with any
transaction approved by the Board of Trustee/Directors.
When any of the above-referenced attorneys signs my name to any document in
connection with maintaining the lawful operation of the Fund, the signing is
automatically ratified and confirmed by me by virtue of this Power of Attorney.
WITNESS my hand on the date set forth below.
December 2, 1997
Date /Signature/
Freda S. Amar Charles T. Nason
Witness Name of Trustee/Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Trustee/Director of Calvert Social Investment Fund (the
"Fund"), hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff, Susan
Walker Bender, Katherine Stoner, Lisa Crossley, and Ivy Wafford Duke my true and
lawful attorneys, with full power to each of them, to sign for me and in my name
in the appropriate capacities, all registration statements and amendments filed
by the Fund with any federal or state agency, and to do all such things in my
name and behalf necessary for registering and maintaining registration or
exemptions from registration of the Fund with any government agency in any
jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things in my name
and behalf to comply with the provisions of all federal, state and foreign laws,
regulations, and policy pronouncements affecting the Fund, including, but not
limited to, the Securities Act of 1933, the Securities Exchange Act of 1934, the
Investment Company Act of 1940, the Investment Advisers Act of 1940, and all
state laws regulating the securities industry.
The same persons are further authorized to sign my name to any document
needed to maintain the lawful operation of the Fund in connection with any
transaction approved by the Board of Trustee/Directors.
When any of the above-referenced attorneys signs my name to any document in
connection with maintaining the lawful operation of the Fund, the signing is
automatically ratified and confirmed by me by virtue of this Power of Attorney.
WITNESS my hand on the date set forth below.
December 8, 1997
Date /Signature/
Katherine Stoner D. Wayne Silby
Witness Name of Trustee/Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned officer of Calvert Social Investment Fund, Calvert World
Values Fund, Acacia Capital Corporation, Calvert New World Fund, First Variable
Rate Fund, Calvert Tax-Free Reserves, Calvert Cash Reserves, The Calvert Fund
and Calvert Municipal Fund (each, respectively, the "Fund"), hereby constitute
William M. Tartikoff, Susan Walker Bender, Katherine Stoner, Lisa Crossley, and
Ivy Wafford Duke my true and lawful attorneys, with full power to each of them,
to sign for me and in my name in the appropriate capacities, all registration
statements and amendments filed by the Fund with any federal or state agency,
and to do all such things in my name and behalf necessary for registering and
maintaining registration or exemptions from registration of the Fund with any
government agency in any jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things in my name
and behalf to comply with the provisions of all federal, state and foreign laws,
regulations, and policy pronouncements affecting the Fund, including, but not
limited to, the Securities Act of 1933, the Securities Exchange Act of 1934, the
Investment Company Act of 1940, the Investment Advisers Act of 1940, and all
state laws regulating the securities industry.
The same persons are further authorized to sign my name to any document
needed to maintain the lawful operation of the Fund in connection with any
transaction approved by the Board of Trustee/Directors.
When any of the above-referenced attorneys signs my name to any document in
connection with maintaining the lawful operation of the Fund, the signing is
automatically ratified and confirmed by me by virtue of this Power of Attorney.
WITNESS my hand on the date set forth below.
December 16, 1997
Date /Signature/
William M. Tartikoff Ronald M. Wolfsheimer
Witness Name of Officer
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<PAGE>
SUB-TRANSFER AGENCY AND SERVICE AGREEMENT
between
CALVERT SHAREHOLDER SERVICES, INC.
and
STATE STREET BANK AND TRUST COMPANY
-1-
<PAGE>
TABLE OF CONTENTS
1. Duties of the Bank. . . . . . . . . . . . . . . . . . . . . . . 1
2. Fees and Expenses . . . . . . . . . . . . . . . . . . . . . . . 3
3 Wire Transfer Operating Guidelines. . . . . . . . . . . . . . . 4
4. Data Access and Proprietary Information . . . . . . . . . . . . 5
5. Indemnification . . . . . . . . . . . . . . . . . . . . . . . . 6
6. Standard of Care. . . . . . . . . . . . . . . . . . . . . . . . 8
7. Covenants of the Transfer Agent and the Bank. . . . . . . . . . 8
8. Representations and Warranties of the Bank. . . . . . . . . . . 9
9. Representations and Warranties of the Transfer Agent. . . . . . 9
10. Termination of Agreement. . . . . . . . . . . . . . . . . . . .10
11 Assignment. . . . . . . . . . . . . . . . . . . . . . . . . . .10
12. Amendment . . . . . . . . . . . . . . . . . . . . . . . . . . .10
13. Massachusetts Law to Apply. . . . . . . . . . . . . . . . . . .10
14. Force Majeure . . . . . . . . . . . . . . . . . . . . . . . . .11
15. Consequential Damages . . . . . . . . . . . . . . . . . . . . .11
16. Limitation of Shareholder Liability . . . . . . . . . . . . . .11
17. Merger of Agreement . . . . . . . . . . . . . . . . . . . . . .11
18. Survival. . . . . . . . . . . . . . . . . . . . . . . . . . . .11
19. Severability. . . . . . . . . . . . . . . . . . . . . . . . . .11
20. Counterparts. . . . . . . . . . . . . . . . . . . . . . . . . .12
-2-
<PAGE>
SUB-TRANSFER AGENCY AND SERVICE AGREEMENT
AGREEMENT made as of the 15th day of August, 1996, by and between,
Calvert Shareholder Services, Inc. a corporation, having its principal office
and place of business at 4550 Montgomery Ave. Suite 1000N, Bethesda,
Maryland, 20814 (the "Transfer Agent"), and STATE STREET BANK AND TRUST
COMPANY, a Massachusetts trust company having its principal office and place
of business at 225 Franklin Street, Boston, Massachusetts 02110 (the "Bank");
WHEREAS, the Transfer Agent has been appointed by each of the investment
companies (including each series thereof) listed on Schedule A (the
"Fund(s)"), each an open-end management investment company registered under
the Investment Company Act of 1940, as amended, as transfer agent, dividend
disbursing agent and shareholder servicing agent in connection with certain
activities, and the Transfer Agent has accepted each such appointment;
WHEREAS, the Transfer Agent has entered into a Transfer Agency and
Service Agreement with each of the Funds (including each series thereof)
listed on Schedule A pursuant to which the Transfer Agent is responsible for
certain transfer agency and dividend disbursing functions for each Fund's
authorized and issued shares of common stock or shares of beneficial interest
as the case may be ("Shares") and each Fund's shareholders ("Shareholders")
and the Transfer Agent is authorized to subcontract for the performance of
its obligations and duties thereunder in whole or in part with the Bank;
WHEREAS, the Transfer Agent desires to appoint the Bank as its
sub-transfer agent, and the Bank desires to accept such appointment;
NOW, THEREFORE, in consideration of the mutual covenant herein
contained, the parties hereto agree as follows:
1. DUTIES OF THE BANK
1.1 Subject to the terms and conditions set forth in this Agreement, the
Bank shall act as the Transfer Agent's sub-transfer agent for Shares in
connection with any accumulation plan, open account, dividend reinvestment
plan, retirement plan or similar plan provided to Shareholders and set out in
each Fund's currently effective prospectus and statement of additional
information ("Prospectus"), including without limitation any periodic
investment plan or periodic withdrawal program. As used herein the term
'"Shares" means the authorized and issued shares of common stock, or shares
of beneficial interest, as the case may be, for each Fund listed in Schedule
A. In accordance with procedures established from time to time by agreement
between the Transfer Agent and the Bank, the Bank shall provide the services
listed in this Section 1.
(a) The Bank shall:
(i) receive for acceptance, orders for the purchase of Shares, and
promptly deliver payment and appropriate documentation thereof to the
Custodian of each
-3-
<PAGE>
Fund authorized pursuant to the Articles of Incorporation or
organization of each Fund (the "Custodian");
(ii) pursuant to purchase orders, issue the appropriate number of
Shares and hold such Shares in the appropriate Shareholder account;
(iii) receive for acceptance redemption requests and redemption
directions and deliver the appropriate documentation thereof to the
Custodian;
(iv) in respect to the transactions in items (i), (ii) and
(iii) above, the Bank shall execute transactions directly with
broker-dealers authorized by each Fund;
(v) at the appropriate time as and when it receives monies paid to
it by the Custodian with respect to any redemption, pay over or cause
to be paid over in the appropriate manner such monies as instructed
by the redeeming Shareholders;
(vi) effect transfers of Shares by the registered owners thereof
upon receipt of appropriate instructions;
(vii) prepare and transmit payments for dividends and distributions
declared by each Fund;
(viii) issue replacement certificates for those certificates alleged
to have been lost, stolen or destroyed upon receipt by the Bank of
indemnification satisfactory to the Bank and protecting the Bank and
each Fund, and the Bank at its option, may issue replacement
certificates in place of mutilated stock certificates upon
presentation thereof and without such indemnity;
(ix) maintain records of account for and advise the Transfer Agent
and its Shareholders as to the foregoing; and
(x) Record the issuance of Shares of each Fund and maintain
pursuant to Rule 17Ad-10(e) of the Securities Exchange Act of 1934 as
amended (the "Exchange Act of 1934") a record of the total number of
Shares of each Fund which are authorized, based upon data provided to
it by each Fund or the Transfer Agent, and issued and outstanding.
The Bank shall also provide each Fund on a regular basis with the
total number of Shares which are authorized and issued and outstanding
and shall have no obligation, when recording the issuance of Shares,
to monitor the issuance of such Shares or to take cognizance of any
laws relating to the issue or sale of such Shares, which functions
shall be the sole responsibility of each Fund or the Transfer Agent.
1.2 (a) For reports, the Bank shall:
-4-
<PAGE>
(i) maintain all Shareholder accounts, prepare meeting, proxy,
and mailing lists, withhold taxes on US resident and non-resident
alien accounts, prepare and file US Treasury Department reports
required with respect to interest, dividends and distributions by
federal authorities for all Shareholders, prepare confirmation forms
and statements of account to Shareholders for all purchases and
redemptions of Shares and other confirmable transactions in
Shareholder account information.
(b) For blue sky reporting the Bank shall provide a system that will
enable each Fund or the Transfer Agent to monitor the total number of
Shares sold in each State, and each Fund or the Transfer Agent shall:
(i) identify to the Bank in writing those transactions and assets
to be treated as exempt from blue sky reporting for each State; and
(ii) verify the establishment of transactions for each State on the
System prior to the activity for each State, the responsibility of
the Bank for each Fund's blue sky state registration status is solely
limited to the initial establishment of transactions subject to blue
sky compliance by the Fund or the Transfer Agent and the reporting of
such transactions to the Fund as provided above.
1.3 Per the attached service responsibility schedule procedures as to who
shall provide certain of these services in Section 1 may be established from
time to time by agreement between the Transfer Agent and the Bank. The Bank
may at times perform only a portion of these services and the Transfer Agent
may perform these services on each Fund's behalf.
1.4 The Bank shall provide additional services on behalf of the Transfer
Agent (i.e., escheat services) that may be agreed upon in writing between the
Bank and the Transfer Agent.
2. FEES AND EXPENSES
2.1 For the performance by the Bank pursuant to this Agreement, the Transfer
Agent agrees to pay the Bank an annual maintenance fee for each Shareholder
account as set out in the initial fee schedule attached hereto. Such fees and
out-of-pocket expenses and advances identified under Section 2.2 below may be
changed from time to time subject to mutual written agreement between the
Transfer Agent and the Bank.
2.2 In addition to the fee paid under Section 2.1 above, the Transfer Agent
agrees to reimburse the Bank for out-of-pocket expenses, including, but not
limited to confirmation production, postage, forms, telephone, microfilm,
microfiche, tabulating proxies, records storage, or advances incurred by the
Bank for the items set out in the fee schedule attached hereto. In addition,
any other expenses incurred by the Bank at the request or with the consent of
the Transfer Agent, will be reimbursed by the Transfer Agent.
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2.3 The Transfer Agent agrees to pay all fees and reimbursable expenses
within fifteen days following the receipt of the respective billing notice.
Postage for mailing of dividends, proxies, Fund reports and other mailings to
all shareholder accounts shall be advanced to the Bank by the Transfer Agent
at least seven (7) days prior to the mailing date of such materials.
3. WIRE TRANSFER OPERATING GUIDELINES/ARTICLES 4A OF THE UNIFORM COMMERCIAL
CODE
3.1 The Bank is authorized to promptly debit the appropriate Transfer Agent
account(s) upon the receipt of a payment order in compliance with the
selected security procedure (the "Security Procedure") chosen for funds
transfer and in the amount of money that the Bank has been instructed to
transfer. The Bank shall execute payment orders in compliance with the
Security Procedure and with the Transfer Agent's instructions on the
execution date provided that such payment order is received by the customary
deadline for processing such a request, unless the payment order specifies a
later time. All payment orders and communications received after this time
frame will be deemed to have been received the next business day.
3.2 The Transfer Agent acknowledges that the Security Procedure it has
designated on the Transfer Agent Selection Form was selected by the Transfer
Agent from security procedures offered by the Bank. The Transfer Agent shall
restrict access to confidential information relating to the Security
Procedure to authorized persons as communicated to the Bank in writing. The
Transfer Agent must notify the Bank immediately if it has reason to believe
unauthorized persons may have obtained access to such information or of any
change in the Transfer Agent's authorized personnel. The Bank shall verify
the authenticity of all such instructions according to the Security Procedure.
3.3 The Bank shall process all payment orders on the basis of the account
number contained in the payment order. In the event of a discrepancy between
any name indicated on the payment order and the account number, the account
number shall take precedence and govern.
3.4 When a Transfer Agent initiates or receives Automated Clearing House
("ACH") credit and debit entries pursuant to these guidelines and the rules
of the National Automated Clearing House Association and the New England
Clearing House Association, the Bank will act as an Originating Depository
Financial Institution and/or receiving Depository Financial Institution, as
the case may be, with respect to such entries. Credits given by the Bank with
respect to an ACH credit entry are provisional until the Bank receives final
settlement for such entry from the Federal Reserve Bank. If the Bank does not
receive such final settlement, the Transfer Agent agrees that the Bank shall
receive a refund of the amount credited to the Transfer Agent in connection
with such entry, and the party making payment to the Transfer Agent via such
entry shall not be deemed to have paid the amount of the entry.
3.5 The Bank reserves the right to decline to process or delay the
processing of a payment order which (a) is in excess of the collected balance
in the account to be charged at the time of the Bank's receipt of such
payment order, or (b) if the Bank, in good faith, is unable to satisfy itself
that the transaction has been properly authorized.
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3.6 The Bank shall use reasonable efforts to act on all authorized requests
to cancel or amend payment orders received if requests are received in a
timely manner affording the Bank reasonable opportunity to act. However, the
Bank assumes no liability if the request for amendment or cancellation cannot
be satisfied.
3.7 The Bank shall assume no responsibility for failure to detect any
erroneous payment order provided that the Bank complies with the payment
order instructions as received and the Bank complies with the Security
Procedure. The Security Procedure is established for the purpose of
authenticating payment orders only and not for the detection of errors in
payment orders.
3.8 The Bank shall assume no responsibility for lost interest with respect
to the retransfer Agentable amount of any unauthorized payment order unless
the Bank is notified of the unauthorized payment order within thirty (30)
days of notification by the Bank of the acceptance of such payment order. In
no event (including failure to execute a payment order) shall the Bank be
liable for special, indirect or consequential damages, even if advised of the
possibility of such damages.
3.9 Confirmation of Bank's execution of payment orders shall ordinarily be
provided within 24 hours notice of which may be delivered through the Bank's
proprietary information systems, or by facsimile or call-back. Client must
report any objections to the execution of an order within 30 days.
4. DATA ACCESS AND PROPRIETARY INFORMATION
The Transfer Agent acknowledges that the data bases, computer programs, screen
formats, report formats, interactive design techniques, and other information
furnished to the Transfer Agent by the Bank are provided solely in connection
with the services rendered under this Agreement and constitute copyrighted trade
secrets or proprietary information of substantial value to the Bank. Such
databases, programs, formats, designs, techniques and other information are
collectively referred to below as "Proprietary Information". The Transfer Agent
agrees that it shall treat all Proprietary Information as proprietary to the
Bank and further agrees that it shall not divulge any Proprietary Information to
any person or organization except as expressly permitted hereunder. The Transfer
Agent agrees for itself and its employees and Agents:
(a) to use such programs and databases (i) solely on the Transfer Agent's
computers, or (ii) solely from equipment at the locations agreed to between
the Transfer Agent and the Bank and (iii) in accordance with the Bank's
applicable user documentation;
(b) to refrain from copying or duplicating in any way (other than in the
normal course of performing processing on the Transfer Agent's computers)
any part of any Proprietary Information;
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(c) to refrain from obtaining unauthorized access to any programs, data or
other information not owned by the Transfer Agent, and if such access is
accidentally obtained, to respect and safeguard the same Proprietary
Information;
(d) to refrain from causing or allowing proprietary information
transmitted from the Bank's computer to the Transfer Agent's terminal to be
retransmitted to any other computer terminal or other device except as
expressly permitted by the Bank, such permission not to be unreasonably
withheld;
(e) that the Transfer Agent shall have access only to those authorized
transactions as agreed to between the Transfer Agent and the Bank; and
(f) to honor reasonable written requests made by the Bank to protect at
the Bank's expense the rights of the Bank in Proprietary Information at
common law and under applicable statutes.
Each party shall take reasonable efforts to advise its employees of their
obligations pursuant to this Section 4.
5. INDEMNIFICATION
5.1 Except as provided in Section 6, herein, the Bank shall not be
responsible for, and the Transfer Agent shall indemnify and hold the Bank
harmless from and against, any and all losses, damages, costs, charges,
counsel fees, payments, expenses and liability arising out of or attributable
to:
(a) all actions of the Bank or its agent or subcontractors required to be
taken pursuant to this Agreement, provided that such actions are taken in
good faith and without negligence or willful misconduct;
(b) the Transfer Agent's lack of good faith, negligence or willful
misconduct;
(c) the reliance on or use by the Bank or its agents or subcontractors of
information, records, documents or services which (i) are given to the
Bank or its agents or subcontractors, and (ii) have been prepared,
maintained or performed by the Transfer Agent or any other person or firm
on behalf of the Transfer Agent including but not limited to any previous
transfer agent or registrar excluding the Bank;
(d) the reliance on, or the carrying out by the Bank or its agents or
subcontractors of any instructions or requests of the Transfer Agent; and
(e) the offer or sale of Shares in violation of any requirement under the
federal securities laws or regulations or the securities laws or
regulations of any state that such Shares be registered in such state or in
violation of any stop order or other determination
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or ruling by any federal agency or any state with respect to the offer or
sale of such Shares in such state.
5.2 At any time the Bank may apply to any officer of the Transfer Agent for
instructions, and may consult with legal counsel with respect to any matter
arising in connection with the services to be performed by the Bank under
this Agreement, and the Bank and its Agents or subcontractors shall not be
liable and shall be indemnified by the Transfer Agent for any action taken or
omitted by it in reliance upon such instructions or upon the opinion of such
counsel.
The Bank, its agents and subcontractors shall be protected and indemnified in
acting upon any paper or document furnished by or on behalf of the Transfer
Agent, reasonably believed by the Batik as being in good order and to have been
signed by the proper person or persons, or upon any instruction, information,
data, records or documents provided the Bank or its Agents or subcontractors by
machine readable input, telex, CRT data entry or other similar means authorized
by the Transfer Agent, and shall not be held to have notice of any change of
authority of any person, until receipt of written notice thereof from the
Transfer Agent. The Bank, its agents and subcontractors shall also be protected
and indemnified in recognizing stock certificates which are reasonably believed
to bear the proper manual or facsimile signatures of the officers of the
Transfer Agent, and the proper countersignature of the Transfer Agent or any
former transfer agent or former registrar, or of a co-transfer agent or
co-registrar.
5.3 In order that the indemnification provisions contained in this Section 5
shall apply, upon the assertion of a claim for which the Transfer Agent may
be required to indemnify the Bank, the Bank shall promptly notify the
Transfer Agent of such assertion, and shall keep the Transfer Agent advised
with respect to all developments concerning such claim. The Transfer Agent
shall have the option to participate with the Bank in the defense of such
claim or to defend against said claim in its own name or in the name of the
Bank. The Bank shall in no case confess any claim or make any compromise in
any case in which the Transfer Agent may be required to indemnify the Bank
except with the Transfer Agent's prior written consent.
6. STANDARD OF CARE
6.1 The Bank shall at all times act in good faith and agrees to use its best
efforts within reasonable limits to insure the accuracy of all services
performed under this Agreement, but assumes no responsibility and shall not
be liable for loss or damage due to errors unless said errors are caused by
its negligence, bad faith, or willful misconduct or that of its employees.
6.2 The Bank shall work with the Transfer Agent to ensure that a Fund is
made whole by the responsible party for any material losses or damages
resulting from errors, material unreconciled items, carelessness, negligence,
bad faith, or willful misconduct by the Bank or its agents or subcontractors,
or that of their employees. Neither the Bank, its agents or subcontractors,
nor the Transfer Agent may waive full liability for losses or damages based
on the above.
6.3 Errors identified as caused by the sub-transfer agent will not be
charged to the Funds in the monthly billing.
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7. COVENANTS OF THE TRANSFER AGENT AND THE BANK
7.1 The Bank hereby agrees to establish and maintain facilities and
procedures reasonably acceptable to the Transfer Agent for safekeeping of
stock certificates, check forms and facsimile signature imprinting devices,
if any; and for the preparation or use, and for keeping account of, such
certificates, forms and devices.
7.2 The Bank shall keep records relating to the services to be performed
hereunder, in the form and manner as it may deem advisable. To the extent
required by Section 31 of the Investment Company Act of 1940, as amended, and
the Rules thereunder, the Bank agrees that all such records prepared or
maintained by the Bank relating to the services to be performed by the Bank
hereunder are the property of the Transfer Agent and will be preserved,
maintained and made available in accordance with such Section and Rules, and
will be surrendered promptly to the Transfer Agent on and in accordance with
its request.
7.3 The Bank and the Transfer Agent agree that all books, records,
information and data pertaining to the business of the other party which are
exchanged or received pursuant to the negotiation or the carrying out of this
Agreement shall remain confidential, and shall not be voluntarily disclosed
to any other person, except as may be required by law.
7.4 In case of any requests or demands for the inspection of the Shareholder
records of the Transfer Agent, the Bank will endeavor to notify the Transfer
Agent and to secure instructions from an authorized officer of the Transfer
Agent as to such inspection. The Bank reserves the right, however, to exhibit
the Shareholder records to any person whenever it is advised by its counsel
that it may be held liable for the failure to exhibit the Shareholder records
to such person.
8. REPRESENTATIONS AND WARRANTIES OF THE BANK
The Bank represents and warrants to the Transfer Agent that:
(a) it is a trust company duly organized and existing and in good standing
under the laws of The Commonwealth of Massachusetts;
(b) it is duly qualified to carry on its business in The Commonwealth of
Massachusetts;
(c) it is empowered under applicable laws and by its Charter and By-Laws
to enter into and perform this Agreement;
(d) all requisite corporate proceedings have been taken to authorize it to
enter into and perform this Agreement;
(e) it has and will continue to have access to the necessary facilities,
equipment and personnel to perform its duties and obligations under this
Agreement; and
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(f) it is registered as a transfer agent undo Section 17A(c)(2) of the
Exchange Act.
9. REPRESENTATIONS AND WARRANTIES OF THE TRANSFER AGENT
The Transfer Agent represents and warrants to the Bank that:
(a) it is a corporation duly organized and existing and in good standing
under the laws of the State of Delaware;
(b) it is empowered under applicable laws and by its Articles of
Incorporation and By-Laws to enter into and perform this Agreement;
(c) all corporate proceedings required by said Articles of Incorporation
and By-Laws have been taken to authorize it to enter into and perform
this Agreement.
(d) it is registered as a transfer agent under Section 17A(c)(2) of the
Exchange Act.
10. TERMINATION OF AGREEMENT
10.1 This Agreement shall continue for a period of five years (the "Initial
Term") and be renewed or terminated as stated below.
10.2 This Agreement shall terminate upon the termination of the Transfer
Agency Agreement between the Funds and the Transfer Agent.
10.3 This Agreement may be terminated or renewed after the Initial Term by
either party upon ninety (90) days written notice to the other.
10.4 Should the Transfer Agent exercise its right to terminate, all
reasonable out-of-pocket expenses associated with the movement of records and
material will be borne by the Transfer Agent. Additionally, the Bank reserves
the right to charge for any other reasonable expenses associated with such
termination and/or a charge equivalent to the average of three (3) months'
fees.
11. ASSIGNMENT
11.1 Except as provided in Section 11.3 below, neither this Agreement nor any
rights or obligations hereunder may be assigned by either party without the
written consent of the other party.
11.2 This Agreement shall inure to the benefit of and be binding upon the
parties and their respective permitted successors and assigns.
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11.3 The Bank will, without further consent on the part of the Transfer
Agent, subcontract for the performance hereof with National Financial Data
Services, Inc., a subsidiary of BFDS duly registered as a transfer agent
pursuant to Section 17A(c)(2) provided, however, that the Bank shall be as
fully responsible to the Transfer Agent for the acts and omissions of any
subcontractor as it is for its own acts and omissions.
12. AMENDMENT
This Agreement may be amended or modified by a written agreement executed by
both parties.
13. MASSACHUSETTS LAW TO APPLY
This Agreement shall be construed and the provisions thereof interpreted under
and in accordance with the laws of The Commonwealth of Massachusetts.
14. FORCE MAJEURE
In the event either party is unable to perform its obligations under the terms
of this Agreement because of acts of God, strikes, equipment or transmission
failure or damage reasonably beyond its control, or other causes reasonably
beyond its control, such party shall not be liable for damages to the other for
any damages resulting from such failure to perform or otherwise from such
causes.
15. CONSEQUENTIAL DAMAGES
Neither party to this Agreement shall be liable to the other party for
consequential damages under any provision of this Agreement or for any
consequential damages arising out of any act or failure to act hereunder.
16. LIMITATIONS OF SHAREHOLDER LIABILITY
Each party hereby expressly acknowledges that recourse against the Funds shall
be subject to those limitations provided by governing law and the Declaration of
Trust or Articles of Incorporation of the Funds, as applicable, and agrees that
obligations assumed by the Funds pursuant to the Transfer Agency Agreement shall
be limited in all cases to the Funds and their respective assets. Each party
shall not seek satisfaction from the Shareholders or any individual Shareholder
of the Funds, nor shall any party seek satisfaction of any obligations from the
Directors\Trustees or any individual Director\Trustee of the Funds.
17. MERGER OF AGREEMENT
This Agreement constitutes the entire agreement between the parties hereto and
supersedes any prior agreement with respect to the subject matter hereof whether
oral or written.
18. SURVIVAL
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All provisions regarding indemnification, warranty, liability, and limits
thereon, and confidentiality and/or protection of proprietary rights and trade
secrets shall survive the termination of this Agreement.
19. SEVERABILITY
If any provision or provisions of this Agreement shall be held invalid,
unlawful, or unenforceable, the validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired.
20. COUNTERPARTS
This Agreement may be executed by the parties hereto on any number of
counterparts, and all of said counterparts taken together shall be deemed to
constitute one and the same instrument.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
in their names and on their behalf by and through their duly authorized
officers, as of the day first written above.
CALVERT SHAREHOLDER SERVICES, INC.
BY: /s/ Karen Becker
TITLE: Vice President
ATTEST: Katherine Stoner
STATE STREET BANK AND TRUST COMPANY
BY: /s/ Ronald E. Logue
TITLE: Executive Vice President
ATTEST: Francine Hayes
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AMENDMENT TO SUB-TRANSFER AGENCY AND SERVICE AGREEMENT
BETWEEN
CALVERT SHAREHOLDER SERVICES, INC.
AND
STATE STREET BANK AND TRUST COMPANY
GENERAL BACKGROUND:
Calvert Shareholder Services, Inc. ("CSSI"), and State Street Bank and Trust
Company ("State Street") entered into a sub-transfer agency and service
agreement ("Agreement") dated August 15, 1996.
For accounting reasons, CSSI desires to amend the Agreement by assigning the
contract for the transfer agent functions (except for shareholder servicing) to
each Calvert Group Fund. CSSI will continue to be responsible for the
shareholder servicing and for any responsibilities currently shown as Transfer
Agent responsibilities in Fund Service Responsibilities attachment to the
Agreement.
The Agreement must be assigned to the Calvert Group Funds for accounting
purposes.
CSSI and State Street must each consent to this assignment.
CHANGES CAUSED BY THIS ASSIGNMENT:
The current subtransfer agent, National Financial Data Services, Inc. ("NFDS"),
will bill each Calvert Group Fund, rather than CSSI, and each Calvert Group Fund
shall pay State Street or its billing agent, NFDS, all fees and expenses
incurred under the Agreement on behalf of each respective Calvert Group Fund.
NFDS will be shown in each Calvert Group Fund prospectus and statement of
additional information as the Transfer Agent, while CSSI will be shown as the
shareholder servicing agent.
State Street (NFDS) will continue to perform those functions shown in the
Agreement as Bank responsibilities.
CSSI will continue to perform the Transfer Agent responsibilities, as shown in
the Fund Service Responsibilities attachment to the Agreement.
THE ASSIGNMENT:
THIS AMENDMENT, dated as of the first day of January, 1998, by and among CSSI
and State Street:
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NOW, THEREFORE, CSSI and State Street each hereby agree that the Agreement will
be between each Calvert Group Fund and State Street, and each hereby agrees that
the Agreement is so assigned.
IN WITNESS WHEREOF, CSSI and State Street have caused this Amendment to be
executed by their duly authorized officers, effective as of January 1, 1998.
Calvert Shareholder Services, Inc. State Street Bank and Trust Company
By: /s/ By: /s/
Name: Karen Becker Name: Ronald E. Logue
Title: Vice President, Operations Title: Executive Vice President
Date: February 18, 1998 Date: February 20, 1998
Acacia Capital Corporation
First Variable Rate Fund
Calvert Tax-Free Reserves
Calvert Social Investment Fund
Calvert Cash Reserves
The Calvert Fund By: /s/
Calvert Municipal Fund, Inc. Name: William M. Tartikoff
Calvert World Values Fund, Inc. Title: Senior Vice President
Calvert New World Fund, Inc. and Secretary
Date: February 18, 1998
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SERVICING AGREEMENT
This Agency Agreement, effective January 1, 1998, by and between Calvert
Shareholder Services, Inc., a Delaware corporation having its principal place of
business in Bethesda, Maryland ("CSS"), and registered investment companies
sponsored by Calvert Group, Ltd. and its subsidiaries and set forth on Schedule
A ("Calvert Group Funds" or "Funds"). The Funds have entered into a transfer
agency and service agreement with the State Street Bank and Trust of Boston,
Massachusetts ("State Street") ("State Street Agreement").
1. APPOINTMENTS. The Funds hereby appoints CSS as servicing agent, agent
and shareholder servicing agent for the Funds, and CSS hereby accepts such
appointment and agrees to perform those duties in accordance with the terms and
conditions set forth in this Agreement.
2. DOCUMENTATION. The Funds will furnish CSS with all documents,
certificates, contracts, forms, and opinions which CSS, in its discretion, deems
necessary or appropriate in connection with the proper performance of its duties
under this Agreement.
3. SERVICES TO BE PERFORMED. CSS will be responsible for telephone
servicing functions, system interface with State Street and oversight of State
Street's administering and performing their duties pursuant to the State Street
Agreement. The details of the operating standards and procedures to be followed
will be determined from time to time by agreement between CSS and the Funds.
4. RECORDKEEPING AND OTHER INFORMATION. CSS will, commencing on the
effective date of this Agreement, to the extent necessary create and maintain
all necessary shareholder accounting records in accordance with all applicable
laws, rules and regulations, including but not limited to records required by
Section 31(a) of the Investment Company Act of 1940, as amended (the "1940
Act"), and the rules thereunder, as amended from time to time. All such records
will be the property of the Fund and will be available for inspection and use by
such Fund.
5. AUDIT, INSPECTION AND VISITATION. CSS will make available during
regular business hours all records and other data created and maintained
pursuant to this Agreement for reasonable audit and inspection by the SEC, a
Fund or any person retained by a Fund.
6. COMPENSATION. The Funds will compensate CSS on a monthly basis for the
services performed pursuant to this Agreement, at the rate of compensation set
forth in Schedule A. Out of pocket expenses incurred by CSS and not included in
Schedule A will be reimbursed to CSS by the Fund, as appropriate; such expenses
may include, but are not limited to, special forms and postage for mailing the
forms. These charges will be payable in full upon receipt of a billing invoice.
In lieu of reimbursing CSS for these expenses, any Fund may, in its discretion,
directly pay the expenses.
7. USE OF NAMES. No Fund will not use the name of CSS in any prospectus,
sales literature or other material relating to the Fund in any manner without
prior approval by CSS; provided, however, that CSS will approve all uses of its
name that merely refer in accurate terms to its appointment under this Agreement
or that are required by the SEC or a State Securities Commission; and, provided,
further, that in no event will approval be unreasonably withheld.
8. SECURITY. CSS represents and warrants that, to the best of its
knowledge, the various procedures and systems that CSS proposes to implement
with regard to safeguarding from loss or damage attributable to fire, theft or
any other cause (including provision for twenty-four hour a day restricted
access) the Fund's, records and other data and CSS's records, data, equipment,
facilities and other property used in the performance of its obligations under
this Agreement are adequate and that it will implement them in the manner
proposed and make such changes from time to time as in its judgment are required
for the secure performance of obligations under this Agreement.
9. LIMITATION OF LIABILITY. Each Fund will indemnify and hold CSS
harmless against any losses, claims, damages, liabilities or expenses (including
reasonable counsel fees and expenses) resulting from any claim, demand, action
or suit brought by any person (including a shareholder naming such Fund as a
party) other than such Fund not resulting from CSS's bad faith, willful
misfeasance, reckless disregard of its obligations and duties, or negligence
arising out of, or in connection with, CSS's performance of its obligations
under this Agreement.
To the extent CSS has not acted with bad faith, willful misfeasance,
reckless disregard of its obligations and duties, or gross negligence, each Fund
will also indemnify and hold CSS harmless against any losses, claims, damages,
liabilities or expenses (including reasonable counsel fees and expenses)
resulting from any claim, demand, action or suit resulting from the negligence
of such Fund, or CSS's acting upon any instructions reasonably believed by it to
have been executed or communicated by any person duly authorized by such Fund,
or
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as a result of CSS's acting in reliance upon advice reasonably believed by CSS
to have been given by counsel for the Fund, or as a result of CSS's acting in
reliance upon any instrument reasonably believed by it to have been genuine and
signed, countersigned or executed by the proper person.
CSS's liability for any and all claims of any kind, including negligence,
for any loss or damage arising out of, connected with, or resulting from this
Agreement, or from the performance or breach thereof, or from the design,
development, lease, repair, maintenance, operation or use of data processing
systems and the maintenance of a Funds' shareholder account records as provided
for by this Agreement will in the aggregate not exceed the total of CSS's
compensation hereunder for the six months immediately preceding the discovery of
the circumstances giving rise to such liability.
In no event will CSS be liable for indirect, special, or consequential
damages (even if CSS has been advised of the possibility of such damages)
arising from the obligations assumed hereunder and the services provided for by
this Agreement, including but not limited to lost profits, loss of use of the
shareholder accounting system, cost of capital, cost of substitute facilities,
programs or services, downtime costs, or claims of shareholders for such damage.
10. LIMITATION OF LIABILITY OF THE FUND. CSS acknowledges that it accepts
the limitations upon the liability of the Funds. CSS agrees that each Fund's
obligations under this Agreement in any case will be limited to such Fund and to
its assets and that CSS will not seek satisfaction of any obligation from the
shareholders of the Fund nor from any director, trustee, officer, employee or
agent of such Fund.
11. FORCE MAJEURE. CSS will not be liable for delays or errors occurring
by reason of circumstances beyond its control, including but not limited to acts
of civil or military authority, national emergencies, work stoppages, fire,
flood, catastrophe, acts of God, insurrection, war, riot, or failure of
communication or power supply. In the event of equipment breakdowns beyond its
control, CSS will take reasonable steps to minimize service interruptions but
will have no liability with respect thereto.
12. AMENDMENTS. CSS and each Fund will regularly consult with each other
regarding CSS's performance of its obligations under this Agreement. Any change
in a Fund's registration statements under the Securities Act of 1933, as
amended, or the 1940 Act or in the forms relating to any plan, program or
service offered by the current prospectus which would require a change in CSS's
obligations under this Agreement will be subject to CSS's approval, which will
not be unreasonably withheld. Neither this Agreement nor any of its provisions
may be changed, waived, discharged, or terminated orally, but only by written
instrument which will make specific reference to this Agreement and which will
be signed by the party against which enforcement of such change, waiver,
discharge or termination is sought.
13. TERMINATION. This Agreement will continue in effect until January 1,
1999, and thereafter as the parties may mutually agree; provided, however, that
this Agreement may be terminated at any time by either party upon at least sixty
days' prior written notice to the other party; and provided further that this
Agreement may be terminated immediately at any time for cause either by any Fund
or CSS in the event that such cause remains unremedied for no less than ninety
days after receipt of written specification of such cause. Any such termination
will not affect the rights and obligations of the parties under Paragraphs 9 and
10 hereof. In the event that a Fund designates a successor to any of CSS's
obligations hereunder, CSS will, at the expense and direction of such Fund,
transfer to such successor all relevant books, records and other data of such
Fund established or maintained by CSS under this Agreement.
15. MISCELLANEOUS. Each party agrees to perform such further acts and
execute such further documents as are necessary to effectuate the purposes of
this Agreement. This Agreement will be construed and enforced in accordance with
and governed by the laws of the State of Maryland. The captions in this
Agreement are included for convenience only and in no way define or delimit any
of the provisions hereof or otherwise affect their construction or effect.
IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the
day and year first above written.
CALVERT GROUP FUNDS
By:/s/ William M. Tartikoff
CALVERT SHAREHOLDER SERVICES, INC.
By:/s/ Ronald M. Wolfsheimer
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<PAGE>
SERVICING AGREEMENT
SCHEDULE A
For its services under this Servicing Agreement, Calvert Shareholder
Services, Inc., is entitled to receive from the Calvert Funds (Except Acacia
Capital Corporation) fees as set forth below:
<TABLE>
<CAPTION>
Annual Transaction
Fund and Portfolio Account Fee * Fee
<S> <C> <C>
FIRST VARIABLE RATE FUND
First Variable Rate Fund (d/b/a Calvert First $11.59 $.84
Government Money Market)
Calvert Florida Municipal Intermediate Fund 2.23 .26
CALVERT TAX-FREE RESERVES
Money Market 13.35 .97
Limited-Term 3.37 .42
Long-Term 2.67 .31
California Money Market 12.74 .93
Vermont Municipal 3.40 .39
CALVERT MUNICIPAL FUND, INC
California Intermediate 3.48 .40
National Intermediate 3.31 .38
Maryland Intermediate 4.64 .53
Michigan Intermediate 3.88 .44
New York Intermediate 4.23 .48
Virginia Intermediate 3.35 .38
Arizona Intermediate 2.10 .24
Pennsylvania Intermediate 2.82 .32
THE CALVERT FUND
Income 4.22 .48
New Vision Small Cap 5.90 .67
CALVERT SOCIAL INVESTMENT FUND
Money Market 11.92 .87
Bond 4.85 .55
Managed Growth 4.63 .72
Equity 5.24 .60
CALVERT WORLD VALUES FUND, INC.
International Equity 5.36 .61
Capital Accumulation 6.26 .72
CALVERT NEW WORLD FUND
New Africa Fund 3.91 .45
</TABLE>
ACACIA CAPITAL CORPORATION FEE IS AS FOLLOWS:
.03% (three basis points) on the first $500 million of average net assets
and .02% (two basis points) over $500 million of average net assets, minus the
fees paid by Acacia Capital Corporation to State Street Bank and Trust pursuant
to the State Street Agreement (except for out of pocket expenses).
- ----------------
* Account fees are charged monthly based on the highest number of non-zero
balance accounts outstanding during the month.
-3-
<PAGE>
THE CALVERT GROUP OF FUNDS
CLASS B AND CLASS C DISTRIBUTION PLAN
As approved by the Boards in November 1993
Amended and restated February 1998 Pursuant to Rule 12b-1
Under the Investment Company Act of 1940
This Distribution Plan applies to Class B and Class C in each portfolio of
the Calvert Funds listed in Schedule A (each a "Fund" and together, the "Funds")
and to any future class for which this Distribution Plan has been approved in
accordance with paragraph 2(a) below. For purposes of this Distribution Plan
each series portfolio of a Fund is referred to herein as a "Series" and
together, as the "Series".
As permitted by Rule 12b-1 under the Investment Company Act of 1940 and in
accordance with the terms and conditions of this Plan, as hereinafter set forth,
a Fund may incur certain expenditures to promote itself and further the
distribution of its shares.
1. PAYMENT OF FEE
(a) As compensation for certain services performed and expenses assumed by
each Fund's distributor and principal underwriter ("Distributor") each Fund may
pay the Distributor a distribution fee (the "Distribution Fee"). The
Distribution Fee is intended to compensate the Distributor for its marketing
efforts, which include, but are not limited to the following costs: commissions
and other payments advanced to sales personnel and third parties and related
interest costs as permitted by the rules of the National Association of
Securities Dealers, Inc. ("NASD"), printing and mailing prospectuses, sales
literature and other relevant material to other than current shareholders,
advertising and public relations, telemarketing, marketing-related overhead
expenses and other distribution costs. Such Distribution Fee is in addition to
any NASD service fee that may be paid hereunder and as described at Section 3(b)
of the Distribution Agreement between the respective Funds and the Distributor,
or any front-end or deferred sales charges the Distributor receives from a Fund
with respect to sales or redemption of Fund shares. Total fees paid pursuant to
this Plan, including the Distribution Fee described above, and the NASD service
fee, shall not exceed the rate set forth in the attached Schedule B to this
Plan. All agreements with any person relating to the implementation of this
Plan shall be in writing, and such agreements shall be subject to termination,
without penalty, pursuant to the provisions of paragraph 2(c) of this Plan.
(b) A Fund will pay each person which has acted as principal underwriter
of its Class B shares its Allocable Portion (as such term is defined in the
Distribution Agreement pursuant to which such person acts or acted as principal
underwriter of the Class B Shares (the "Applicable Distribution Agreement")) of
the Distribution Fee in respect of Class B Shares of the Fund. Such person
shall be paid its Allocable Portion of such Distribution Fees notwithstanding
such person's termination as Distributor of the Class B Shares of the Fund, such
payments to be changed or terminated only: (i) as required by a change in
applicable law or a change in accounting policy adopted by the Investment
Companies Committee of the AICPA and approved by FASB that results in a
determination by the Fund's independent accountants that any asset based sales
charges (as that term is defined by the NASD) in respect of such Fund, and which
are not yet due and payable, must be accounted for by such Fund as a liability
in accordance with GAAP, each after the effective date of this restated
Distribution Plan; (ii) if in the sole discretion of the Board of
Trustees/Directors, after due consideration of the relevant factors considered
when adopting and/or amending this Distribution Plan including the transactions
contemplated in that certain Purchase and Sale Agreement entered into between a
Fund's Distributor and the commission financing entity, the Board of
Trustees/Directors determines, subject to its fiduciary duty, that this
Distribution Plan and the payments thereunder must be changed or terminated,
notwithstanding the effect this action might have on the Fund's ability to offer
and sell Class B shares; or (iii) in connection with a Complete Termination of
this Distribution Plan, it being understood that for this purpose a Complete
Termination of this Distribution Plan occurs only if, as to a Fund or Series,
this Distribution Plan is terminated and the Fund has not adopted any other
distribution plan with respect to its Class B or other substantially similar
class of shares. The services rendered by a Distributor for which that
Distributor is entitled to receive its Allocable Portion of the Distribution Fee
shall be deemed to have been completed at the time
-1-
<PAGE>
of the initial purchase of the Commission Shares (as defined in the Distribution
Agreement) taken into account in computing that Distributor's Allocable Portion
of the Distribution Fee.
The obligation of a Fund to pay the Distribution Fee shall terminate upon
the termination of this Distribution Plan as to such Fund in accordance with the
terms hereof. Except as provided in the preceding paragraph, a Fund's
obligation to pay the Distribution Fee to a Distributor of the Class B Shares of
the Fund shall be absolute and unconditional and shall not be subject to any
dispute, offset, counterclaim or defense whatsoever (it being understood that
nothing in this sentence shall be deemed a waiver by a Fund of its right
separately to pursue any claims it may have against such Distributor and enforce
such claims against any assets (other than its right to be paid its Allocable
Portion of the Distribution Fee and to be paid the contingent deferred sales
charges) of such Distributor).
The right of a Distributor to receive the Distribution Fee, but not the
relevant Distribution Agreement or that Distributor's obligations thereunder,
may be transferred by that Distributor in order to raise funds which may be
useful or necessary to perform its duties as principal underwriter, and any such
transfer shall be effective upon written notice from that Distributor to the
Fund. In connection with the foregoing, each Fund is authorized to pay all or
part of the Distribution Fee directly to such transferee as directed by that
Distributor.
(c) Nothing in this Distribution Plan shall operate or be construed to
limit the extent to which the Fund's Investment Advisor or any other person,
other than the Fund, at its expense apart from the Distribution Plan, may incur
costs and pay expenses associated with the distribution of Fund shares.
2. EFFECTIVE DATE AND TERM
(a) This Distribution Plan shall become effective as to any Class of any
Series upon approval by majority votes of (i) the Board of the Fund and the
members thereof who are not interested persons within the meaning of Section
2(a)(19) of the Investment Company Act of 1940 and have no direct or indirect
financial interest in the operation of the Distribution Plan or in any
agreements related to the Distribution Plan ("Qualified Trustees/Directors"),
cast in person at a meeting called for the purpose of voting on this
Distribution Plan, and (ii) the outstanding voting securities of the Fund.
(b) This Distribution Plan shall remain in effect for one year from its
adoption date and may continue in effect thereafter if this Distribution Plan is
approved at least annually by a majority vote of the Board of the Fund,
including a majority of the Qualified Trustees/Directors, cast in person at a
meeting called for the purpose of voting on the Distribution Plan.
(c) Subject to paragraph 1(b) above, this Distribution Plan may be
terminated at any time without payment of any penalty by a majority vote of the
Qualified Trustees/Directors or by vote of a majority of the outstanding voting
securities of the Fund, or, with respect to the termination of this Distribution
Plan as to a particular Class of a Portfolio, by a vote of a majority of the
outstanding voting securities of that Class.
(d) The provisions of this Distribution Plan are severable for each Series
or Class, and whenever action is to be taken with respect to this Distribution
Plan, that action must be taken separately for each Series or Class affected by
the matter.
3. REPORTS
The person authorized to direct the disposition of monies paid or
payable by the Fund pursuant to the Distribution Plan shall provide, on at least
a quarterly basis, a written report to each Fund's Board of the amounts expended
pursuant to this Distribution Plan or any related agreements and the purposes
for which such expenditures were made.
4. SELECTION OF DISINTERESTED TRUSTEES/DIRECTORS
-2-
<PAGE>
While this Distribution Plan is in effect, the selection and
nomination of those Trustees/Directors who are not interested persons of a Fund
within the meaning of Section 2(a)(19) of the Investment Company Act of 1940
shall be committed to the discretion of the Trustees/Directors then in office
who are not interested persons of the Fund.
5. EFFECT OF PLAN
This Distribution Plan shall not obligate the Fund or any other party
to enter into an agreement with any particular person.
6. AMENDMENT
This Distribution Plan may not be amended to increase materially the
amount authorized in paragraph 1 hereof to be spent by a Fund for distribution
without approval by a vote of the majority of the outstanding shares of such
Fund, except that if the amendment relates only to a particular Class of a Fund,
such approval need only be by a vote of the majority of the outstanding shares
of that Class. All material amendments to this Distribution Plan must be
approved by a majority vote of the Board of the Fund, and of the Qualified
Trustees/Directors, cast in person at a meeting called for the purpose of voting
thereon.
-3-
<PAGE>
SCHEDULE A
The Calvert Fund
Calvert Tax-Free Reserves
Calvert Municipal Fund
Calvert Social Investment Fund
Calvert World Values Fund
Calvert New World Fund
First Variable Rate Fund
-4-
<PAGE>
SCHEDULE B
The total fees paid by the respective Class of each Series of a Fund
pursuant to this Distribution Plan shall not exceed the rate, as a percentage of
that Class' average annual net assets, set forth below:
<TABLE>
<CAPTION>
FUND/SERIES CLASS B CLASS C
Distribution Service Distribution Service
Fee Fee Fee Fee
<S> <C> <C> <C> <C>
The Calvert Fund
Calvert New Vision
Small Cap Fund 0.75 0.25 0.75 0.25
Calvert Income Fund 0.75 0.25 0.75 0.25
Calvert Tax-Free Reserves
Long-Term 0.75 0.25 0.75 0.25
Vermont Municipal 0.75 0.25 0.75 0.25
Calvert Municipal Fund
National 0.75 0.25 N/A N/A
California 0.75 0.25 N/A N/A
Maryland 0.75 0.25 N/A N/A
Virginia 0.75 0.25 N/A N/A
Calvert Social Investment Fund
Managed Growth 0.75 0.25 0.75 0.25
Equity 0.75 0.25 0.75 0.25
Bond 0.75 0.25 0.75 0.25
Managed Index 0.75 0.25 0.75 0.25
Calvert World Values Fund
International Equity 0.75 0.25 0.75 0.25
Capital Accumulation 0.75 0.25 0.75 0.25
Calvert World Values Fund
Calvert New Africa 0.75 0.25 0.75 0.25
First Variable Rate Fund
Calvert First Gov.
Money Market 0.75 0.25 N/A N/A
</TABLE>
Restated Feb. 1998
-5-
<PAGE>
THE CALVERT GROUP OF FUNDS
RULE 18f-3 MULTIPLE CLASS PLAN
Approved by the Boards in January 1996
Amended and restated February 1998 Pursuant to Rule 18f-3
Under the Investment Company Act of 1940
Rule 18f-3 under the Investment Company Act of 1940, as amended (the "1940
Act"), requires that an investment company desiring to offer multiple classes of
shares pursuant to the Rule adopt a plan setting forth the differences among the
classes with respect to shareholder services, distribution arrangements, expense
allocations and any related conversion features or exchange privileges. Any
material amendment to the plan must be approved by the investment company's
Board of Trustees/Directors, including a majority of the disinterested Board
members, who must find that the plan is in the best interests of each class
individually and the investment company as a whole.
This Rule 18f-3 Multiple Class Plan ("Plan") shall apply to those funds in
the Calvert Group of Funds listed in Exhibit I (each a "Fund" and collectively,
"Funds") and to any future fund for which this Plan has been approved in
accordance with the above paragraph.
The provisions of this Plan are severable for each Fund or Series thereof
("Series") or Class, and whenever action is to be taken with respect to this
Plan, that action must be taken separately for each Fund, Series or Class
affected by the matter.
1. CLASS DESIGNATION. A Fund may offer shares designated Class A, Class
B, Class C , Class I, and for certain money market portfolios, Class O.
2. DIFFERENCES IN AVAILABILITY. Class A, Class B, Class C, and Class O
shares shall each be available through the same distribution channels, except
that (a) Class B shares may not be available through some dealers and are not
available for purchases of $500,000 or more, (b) Class B shares of Calvert First
Government Money Market Fund are available only through exchange from Class B or
Class C shares of another Calvert Fund, and (c) Class C shares may not be
available through some dealers and are not available for purchases of $1 million
or more. Class I shares are generally available only directly from Calvert Group
and not through dealers, and each Class I shareholder must maintain a $1 million
minimum account balance.
3. DIFFERENCES IN SERVICES. The services offered to shareholders of each
Class shall be substantially the same, except that the Rights of Accumulation,
Letters of Intent and Reinvestment Privileges shall be available only to holders
of Class A shares. Class I purchases and redemptions may only be made by bank
wire.
4. DIFFERENCES IN DISTRIBUTION ARRANGEMENTS. Class A shares shall be
offered with a front-end sales charge, as such term is defined in Rule 2830 of
the Conduct Rules of the National Association of Securities Dealers, Inc. The
amount of the sales charge on Class A shares is set forth at Exhibit II. Class
A shares shall be subject to a Distribution Plan adopted pursuant to Rule 12b-1
under the 1940 Act. The amount of the Distribution Plan expenses for Class A
shares, as set forth at Exhibit II, are used to pay the Fund's principal
underwriter for distributing and or providing services to the Fund's Class A
shares. This amount includes a service fee at the annual rate of .25 of 1% of
the value of the average daily net assets of Class A.
Class B shares shall be offered with a contingent deferred sales charge
("CDSC") and no front-end sales charge. The amount of the CDSC on Class B shares
is set forth at Exhibit II. Class B shares shall be subject to a Distribution
Plan adopted pursuant to Rule 12b-1 under the 1940 Act. The amount of the
Distribution Plan expenses for Class B shares, as set forth at Exhibit II, are
used to pay each Fund's principal underwriter for distributing and or providing
services to the Fund's Class B shares. This amount includes a service fee at the
annual rate of .25 of 1% of the value of the average daily net assets of Class
B.
Class C shares shall not be subject to a front-end sales charge, but shall
be subject to a 1.00% CDSC if the
-1-
<PAGE>
shares are redeemed within one year of purchase. Class C shares shall be subject
to a Distribution Plan adopted pursuant to Rule 12b-1 under the 1940 Act. The
amount of the Distribution Plan expenses for Class C shares are set forth at
Exhibit II. The Class C Distribution Plan pays each applicable Fund's principal
underwriter for distributing and or providing services to such Fund's Class C
shares. This amount includes a service fee at the annual rate of .25 of 1% of
the value of the average daily net assets of Class C.
Class I and Class O shares shall be subject to neither a front-end sales
charge, nor a CDSC, nor are they subject to a Distribution Plan adopted pursuant
to Rule 12b-1 under the 1940 Act.
5. EXPENSE ALLOCATION. The following expenses shall be allocated, to the
extent practicable, on a Class-by-Class basis: (a) Distribution Plan fees; (b)
transfer agent fees; (c) administrative service fees; (d) printing and postage
expenses payable by a Fund relating to preparing and distributing materials,
such as proxies, reports and prospectuses to current shareholders of a specific
class; (e) class specific state notification fees; (f) class specific litigation
or other legal expenses; (g) certain class specific reimbursement from the
Advisor; and (h) certain class specific contract services (e.g., proxy
solicitation).
6. CONVERSION FEATURES. Class B shares shall be subject to an automatic
conversion feature into Class A shares after they have been held for that number
of years set forth in Exhibit II. Class A, Class C ,Class I, and Class O are not
subject to automatic conversion.
7. EXCHANGE PRIVILEGES. Class A shares shall be exchangeable only for:
(a) Class A shares of other funds managed or administered by the Calvert Group;
(b) shares of funds managed or administered by the Calvert Group which do not
have separate share classes; and (c) shares of certain other funds specified
from time to time.
Class B shares shall be exchangeable only for: (a) Class B shares of other
funds managed or administered by the Calvert Group; (b) Class A shares of other
funds managed or administered by the Calvert Group, if the front-end load on the
Class A shares is paid at the time of the exchange; and (c) shares of certain
other funds specified from time to time.
Class C shares shall be exchangeable only for: (a) Class C shares of other
funds managed or administered by the Calvert Group and Class B shares of Calvert
First Government Money Market Fund; (b) Class A shares of other funds managed or
administered by the Calvert Group, if the front-end load on the Class A shares
is paid at the time of the exchange; and (c) shares of certain other funds
specified from time to time.
Class I shares shall be exchangeable only for: (a) Class I shares of other
funds managed or administered by the Calvert Group; (b) Class A shares of other
funds managed or administered by the Calvert Group, if the front-end load on the
Class A shares is paid at the time of the exchange; and (c) shares of certain
other funds specified from time to time.
-2-
<PAGE>
Exhibit I
The Calvert Fund
Calvert Tax-Free Reserves
Calvert Municipal Fund
Calvert Social Investment Fund
Calvert World Values Fund
Calvert New World Fund
First Variable Rate Fund
-3-
<PAGE>
Exhibit II
CALVERT SOCIAL INVESTMENT FUND (CSIF)
<TABLE>
<CAPTION>
Maximum Class A Maximum Maximum
Front-End Sales Class A Class C
Charge 12b-1 Fee 12b-1 Fee
<S> <C> <C> <C>
CSIF Managed Growth 4.75% 0.35% 1.00%
CSIF Equity 4.75% 0.35% 1.00%
CSIF Managed Index 4.75% 0.25% 1.00%
CSIF Bond 3.75% 0.35% 1.00%
</TABLE>
<TABLE>
<CAPTION>
Class B
Managed Growth,
Equity, and Maximum
Contingent Deferred Sales Charge Managed Index Bond 12b-1 Fee
<S> <C> <C> <C>
Shares held less than one year after purchase 5% 4% 1.00%
More than one year but less than two 4% 3%
More than two years but less than three 4% 2%
More than three years but less than four 3% 1%
More than four years but less than five 2%
More than five years but less than six 1%
Converts to Class A after 8 yrs. 6yrs.
</TABLE>
-4-
<PAGE>
Exhibit II
CALVERT TAX-FREE RESERVES (CTFR)
<TABLE>
<CAPTION>
Maximum Class A Maximum Maximum
Front-End Sales Class A Class C
Charge 12b-1 Fee 12b-1 Fee
<S> <C> <C> <C>
CTFR Long-Term 3.75% 0.35% 1.00%
CTFR Vermont 3.75% N/A 1.00%
<CAPTION>
Class B
Long-Term and Maximum
Contingent Deferred Sales Charge Vermont 12b-1 Fee
<S> <C> <C>
Shares held less than one year after purchase 4% 1.00%
More than one year but less than two 3%
More than two years but less than three 2%
More than three years but less than four 1%
Converts to Class A after 6yrs.
</TABLE>
-5-
<PAGE>
Exhibit II
CALVERT MUNICIPAL FUND
<TABLE>
<CAPTION>
Maximum Class A Maximum Maximum
Front-End Sales Class A Class C
Charge 12b-1 Fee 12b-1 Fee
<S> <C> <C> <C>
National Intermediate 2.75% 0.25% N/A
California Intermediate 2.75% 0.25% N/A
Maryland Intermediate 2.75% 0.25% N/A
Virginia Intermediate 2.75% 0.25% N/A
<CAPTION>
Class B
Maximum
Contingent Deferred Sales Charge CMF 12b-1 Fee
<S> <C> <C>
Shares held less than one year after purchase 3% 1.00%
More than one year but less than two 2%
More than two years but less than three 2%
More than three years but less than four 1%
Converts to Class A after 4 yrs.
</TABLE>
-6-
<PAGE>
Exhibit II
THE CALVERT FUND
<TABLE>
<CAPTION>
Maximum Class A Maximum Maximum
Front-End Sales Class A Class C
Charge 12b-1 Fee 12b-1 Fee
<S> <C> <C> <C>
New Vision Small Cap 4.75% 0.25% 1.00%
Calvert Income Fund 3.75% 0.50% 1.00%
<CAPTION>
Class B
Maximum
Contingent Deferred Sales Charge New Vision Income 12b-1 Fee
<S> <C> <C> <C>
Shares held less than one year 5% 4% 1.00%
More than one year but less than two 4% 3%
More than two years but less than three 4% 2%
More than three years but less than four 3% 1%
More than four years but less than five 2%
More than five years but less than six 1%
Converts to Class A after 8 yrs. 6 yrs.
</TABLE>
-7-
<PAGE>
Exhibit II
CALVERT WORLD VALUES FUND
<TABLE>
<CAPTION>
Maximum Class A Maximum Maximum
Front-End Sales Class A Class C
Charge 12b-1 Fee 12b-1 Fee
<S> <C> <C> <C>
International Equity 4.75% 0.35% 1.00%
Capital Accumulation 4.75% 0.35% 1.00%
<CAPTION>
Class B
Maximum
Contingent Deferred Sales Charge CWVF 12b-1 Fee
<S> <C> <C>
Shares held less than one year after purchase 5% 1.00%
More than one year but less than two 4%
More than two years but less than three 4%
More than three years but less than four 3%
More than four years but less than five 2%
More than five years but less than six 1%
Converts to Class A after 8 yrs.
</TABLE>
February 1998
Lgl Shr/Agreements/New UW/Rule 18f-3 Plan
-8-
<PAGE>
Exhibit II
CALVERT NEW WORLD FUND
<TABLE>
<CAPTION>
Maximum Class A Maximum Maximum
Front-End Sales Class A Class C
Charge 12b-1 Fee 12b-1 Fee
<S> <C> <C> <C>
Calvert New Africa 4.75% 0.25% 1.00%
<CAPTION>
Class B
Maximum
Contingent Deferred Sales Charge New Africa 12b-1 Fee
<S> <C> <C>
Shares held less than one year after purchase 5% 1.00%
More than one year but less than two 4%
More than two years but less than three 4%
More than three years but less than four 3%
More than four years but less than five 2%
More than five years but less than six 1%
Converts to Class A after 8 yrs.
</TABLE>
-9-
<PAGE>
Exhibit II
FIRST VARIABLE RATE FUND
<TABLE>
<CAPTION>
Maximum Class A Maximum Maximum
Front-End Sales Class A Class C
Charge 12b-1 Fee 12b-1 Fee
<S> <C> <C> <C>
First Gov. Money Market N/A N/A N/A
<CAPTION>
Class B
Maximum
Contingent Deferred Sales Charge 12b-1 Fee
<S> <C>
CDSC of original Class B Fund purchased is applied upon
redemption from Class B of First Government Money Market 1.00%
</TABLE>
Conversion period of original Class B Fund purchased is applied.
-10-
