PROSPECTUS
March 11, 1998
CALVERT SOCIAL INVESTMENT FUND
MANAGED INDEX PORTFOLIO
Class I (Institutional Investors)
4550 Montgomery Avenue, Bethesda, Maryland 20814
INVESTMENT OBJECTIVE
The Managed Index Portfolio (the "Portfolio") seeks to provide a total return
after expenses which exceeds over time the total return of the Russell 1000
Index. The Portfolio seeks to obtain this objective while maintaining risk
characteristics similar to those of the Russell 1000 Index and through
investment in equity securities that satisfy the Portfolio's investment and
social criteria.
WHETHER THE PORTFOLIO IS FOR YOU
The Portfolio is designed for investors who are seeking returns which exceed
the Russell 1000 Index with similar risk characteristics and who want to
invest in socially responsible companies.
This Prospectus sets forth information that prospective purchases of Class I
shares should know before investing. Please keep it for future reference. A
Statement of Additional Information for the Portfolio dated March 3, 1998, has
been filed with the Securities and Exchange Commission and is incorporated by
reference. This free Statement is available upon request from the Portfolio:
800-368-2748.
The SEC maintains a Web site at http://www.sec.gov that contains the Statement
of Additional Information, material incorporated by reference, and other
information regarding the Portfolio.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION, NOR HAS THE COMMISSION
OR ANY STATE SECURITIES COMMISSION PASSED ON THE ACCURACY OR ADEQUACY OF THIS
PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
THE PORTFOLIO'S SHARES ARE NOT GUARANTEED OR INSURED BY THE FDIC OR ANY OTHER
AGENCY OF THE U.S. GOVERNMENT, NOR ARE THE SHARES DEPOSITS OR OBLIGATIONS OF,
OR GUARANTEED OR ENDORSED BY, STATE STREET BANK AND TRUST COMPANY, OR ANY
OTHER BANK. AS WITH ANY INVESTMENT IN COMMON STOCKS, WHICH ARE SUBJECT TO
WIDE FLUCTUATIONS IN MARKET VALUE, YOU COULD LOSE MONEY BY INVESTING IN THE
PORTFOLIO.
PORTFOLIO EXPENSES
A. Shareholder Transaction Costs Class I
Front-End Sales Charge on Purchases None
Contingent Deferred Sales Charge None
B. Annual Portfolio Operating Expenses Class I
(as a percentage of average net assets)
Management Fees (includes 0.70%
administrative fees)
Rule 12b-1 Service and Distribution
Fees None
Other Expenses (Estimated after fee 0.05%
waiver/expense reimbursement by
Advisor)
Total Portfolio Operating Expenses 0.75%
(after fee waiver/expense
reimbursement by Advisor)
C. Example: You would pay the following expenses on a $1,000 investment,
assuming: (1) 5% annual return; and (2) redemption at the end of each period.
1 Year 3 years
Class I $8 $24
The example, which is hypothetical, should not be considered a representation
of past or future expenses. Actual expenses and return may be higher or lower
than those shown.
Explanation of Table: The purpose of the table is to assist you in
understanding the various costs and expenses (other than account maintenance
fees) that an investor in the Portfolio would bear directly (shareholder
transaction costs) or indirectly (annual portfolio operating expenses).
A. Shareholder Transaction Costs are charges you pay when you buy or
sell shares of the Portfolio.
B. Annual Portfolio Operating Expenses. Management Fees are paid by
the Portfolio to the Advisor for managing its investments and business
affairs. Management fees include the subadvisory fee paid by Calvert Asset
Management Company, Inc. (the "Advisor") to State Street Global Advisors (the
"Subadvisor"), and the administrative service fee paid by the Portfolio to
Calvert Administrative Services Company. The Portfolio incurs Other Expenses
for maintaining shareholder records, furnishing shareholder statements and
reports, and other services. Other expenses are based on estimates for the
current fiscal year. Management Fees and Other Expenses are reflected in the
Portfolio's daily share price and are not charged directly to individual
shareholder accounts. Please refer to "Management of the Portfolio" for
further information. The Advisor may voluntarily reimburse expenses of the
Portfolio or waive its fees. The Advisor may recapture from the Fund any fees
it waives or expenses it assumes, subject to certain limitations. Through
March 31, 1999, the Advisor has agreed to cap expenses at 0.75% for Class I.
Gross Total Portfolio Operating Expenses during this period are expected to be
0.83% for Class I.
Certain broker/dealers and/or their salespersons may receive compensation for
the distribution of the securities or for services to the Portfolio. See the
Statement of Additional Information, "Method of Distribution."
INVESTMENT OBJECTIVE AND POLICIES
Investment Objective
The Managed Index Portfolio (the "Portfolio") seeks to provide a total return
after expenses which exceeds over time the total return of the Russell 1000
Index. The Portfolio seeks to obtain this objective while maintaining risk
characteristics similar to those of the Russell 1000 Index and through
investment in equity securities that satisfy the Portfolio's investment and
social criteria. There can be no assurance that the Portfolio will be
successful in meeting its objective. Long-term capital growth may be achieved
as the Portfolio attempts to track its index. The Portfolio's investment
objective is not fundamental and, unless otherwise specified, its policies and
strategies are not fundamental. The investment objective and each
non-fundamental policy and strategy may be changed by the Fund's Board of
Trustees without shareholder approval.
INVESTMENT STRATEGY AND RELATED RISKS
Investment Strategy
The Portfolio follows an enhanced index management strategy. This means that,
rather than passively holding a representative basket of securities designed
to match the Russell 1000 Index, the Subadvisor actively uses a proprietary
analytical model to attempt to enhance the Portfolio's performance, relative
to that index.
The first step of the investment strategy is to identify those stocks in the
Russell 1000 Index which meet the Portfolio's social screening criteria. From
this list of stocks, the Subadvisor chooses stocks that closely mirror the
index in terms of various factors such as industry weightings, capitalization,
and yield. By providing exposure to these various factors which affect
returns to match the factor exposure of the index, the Subadvisor seeks to
provide a return for the Portfolio that differs only minimally from the Index.
Even though certain industries are eliminated from the Portfolio by the
screens, the factor model permits mathematical substitutes which the
Subadvisor expects to mimic the return characteristics of the missing
industries and stocks. The final step in the process is to apply the
Subadvisor's proprietary valuation method which attempts to identify the
stocks which have the greatest potential for superior performance.
Each security identified for potential investment is ranked according to two
separate and relatively uncorrelated measures: value and momentum of market
sentiment. The value measure compares a company's assets, projected earnings
growth and cash flow growth with its stock price within the context of its
historical valuation. The momentum measure of market sentiment examines
changes in market analysts' earnings estimates and ranks stocks by the
strength and consistency of those changes. These two measures combine to
create a single composite score of each stock's attractiveness. The Portfolio
is constructed from securities that meet its social criteria, weighted through
a quadratic optimization1 process that seeks to reduce risk vis-a-vis the
Russell 1000 Index.
The Portfolio will generally have at least 65% of its total assets invested in
securities represented in the Russell 1000 Index. Any investments not in the
Index will meet the Portfolio's social screening criteria and be selected to
closely mirror the Index's risk/return characteristics. The Subadviser
expects to hold between 100 and 150 stocks.
The Russell 1000 index measures the performance of the 1,000 largest companies
in the Russell 3000 Index. The Russell 3000 Index measures the performance of
the 3,000 largest US companies based on total market capitalization. The
Index is adjusted, or reconstituted, annually. As of the latest
reconstitution, the average market capitalization of the Russell 1000 was
approximately $7.6 billion; the median market capitalization was approximately
$3.0 billion. The smallest company in the Russell 1000 Index had an
approximate market capitalization of $1.1 billion.
Tracking the Index
The Subadvisor expects a tracking error over time of no more than
2.5%, although there can be no guarantee such results will be achieved. The
process used by the Portfolio to attempt to track the Index within this limit
relies on assessing the difference between the Portfolio's exposure to factors
which influence returns and the Index's exposure to those same factors. The
combined variability of these factors and the correlation between factors are
used to estimate the risk in the Portfolio. The extent to which the total risk
characteristics of the Portfolio varies from that of the Index is active risk
or tracking error.
The Portfolio's ability to track the index will be monitored by
analyzing returns to ensure that the returns are reasonably consistent with
Index returns. By regressing Portfolio returns against Index returns the
Advisor can calculate the goodness of fit, as measured by the Coefficient of
Determination or R -squared. Values in excess of 90% indicate a very high
degree of correlation between the Portfolio and the Index. The Portfolio will
also be monitored to ensure that general characteristics, such as sector
exposures, capitalization and valuation criteria, are relatively consistent
over time.
Any deviations of realized returns from the Index which are in excess
of those expected will be analyzed for sources of variance. Where variations
are deemed to be systematic or associated with a particular feature of the
investment process, the constraints on the Portfolio associated with that
factor may be adjusted to ensure a higher degree of correlation to the Index.
Risks
An index fund has operating expenses; a market index does not. The Portfolio
- - while expected to track its target index as closely as possible while
satisfying its investment and social criteria - will not be able to match the
performance of the index exactly. The Portfolio is not sponsored, sold,
promoted, or endorsed by the Frank Russell Company.
The Portfolio is subject to market risk, which is the possibility that stock
prices overall will decline over short or even extended periods. Stock
markets tend to move in cycles, with periods of rising stock prices and
periods of falling stock prices. The Portfolio's total return and share price
will fluctuate within a wide range, so an investor could lose money over short
or even extended periods.
In seeking returns consistent with the Russell 1000 Index universe of stocks,
the Portfolio will normally be as fully invested as practicable in stocks or
their equivalents. The Portfolio does not currently anticipate holding more
than 5% of its net assets in cash or cash equivalents.
The Portfolio may use stock futures and options as part of its investment
strategy
Besides investing in the stocks found in the Russell 1000 Index, the Portfolio
may also follow a number of other investment policies to achieve its
objective. These techniques may involve derivative transactions such as buying
and selling futures contracts and options on futures. The Portfolio can use
these practices for liquidity and to seek to hedge cash exposure in the
Portfolio. The decision to invest in these instruments will be based on market
conditions, regulatory limits and tax considerations. There can be no
assurance that engaging in options, futures, or any other investment strategy
will be successful. If market values or other economic factors are misgauged,
the Portfolio may be worse off than had it not employed the strategy. If
market conditions are judged incorrectly, if a strategy does not correlate
well with the Portfolio's investments, or if the counterparty to the
transaction does not perform as promised, these techniques could result in a
loss. These techniques may increase the volatility of the Portfolio and may
involve a small investment of cash relative to the magnitude of the risk
assumed. The use of these strategies may result in a disadvantage to the
Portfolio if it is not able to purchase or sell a portfolio holding at an
optimal time due to the need to cover its transaction in its segregated
account, or due to the inability of the Portfolio to liquidate its position
because of its relative illiquidity. See the Statement of Additional
Information for more details about these strategies and limitations on
illiquid securities.
Borrowing/Repurchase Agreements/Securities Lending
The Portfolio may borrow money from banks (and pledge its assets to secure
such borrowing) for temporary or emergency purposes, but not for leverage.
Such borrowing may not exceed one third of the value of the Portfolio's total
assets. The Portfolio may also invest in repurchase agreements with
recognized securities dealers and banks determined to present minimal credit
risk by the Advisor. The Portfolio may lend its securities. The Portfolio has
no current intention to use borrowing, repurchase agreements or securities
lending with respect to more than 5%, respectively, of the Portfolio's net
assets.
Additional policies and restrictions
The Portfolio's Statement of Additional Information describes additional
policies and restrictions concerning the investments of the Portfolio.
SOCIALLY RESPONSIBLE INVESTMENT CRITERIA
EACH INVESTMENT IS SELECTED WITH A CONCERN FOR ITS SOCIAL IMPACT
The Portfolio invests in accordance with its philosophy that
long-term rewards to investors will come from those organizations whose
products, services, and methods enhance the human condition and the
traditional American values of individual initiative, equality of opportunity
and cooperative effort.
The Portfolio applies the following criteria for the selection of
organizations in which it invests. The Portfolio recognizes, however, that
these criteria represent standards of behavior which few, if any,
organizations totally satisfy and that, as a matter of practice, evaluation of
a particular organization in the context of these criteria will involve
subjective judgment by the Advisor.
Given these considerations, the Portfolio seeks to invest in a
producer or service provider which:
1. Delivers safe products and services in ways which sustain
our natural environment. For example, the Portfolio looks for companies that
produce energy from renewable resources, while avoiding consistent polluters.
2. Is managed with participation throughout the organization in
defining and achieving objectives. For example, the Portfolio looks for
companies that offer employee stock ownership or profit-sharing plans.
3. Negotiates fairly with its workers, provides an environment
supportive of their wellness, does not discriminate on the basis of race,
gender, religion, age, disability, ethnic origin, or sexual orientation, does
not consistently violate regulations of the Equal Employment Opportunity
Commission, and provides opportunities for women, disadvantaged minorities,
and others for whom equal opportunities have often been denied. For example,
the Portfolio considers both unionized and non-union firms with good labor
relations.
4. Fosters awareness of a commitment to human goals, such as
creativity, productivity, self-respect and responsibility, within the
organization and the world, and continually recreates a context within which
these goals can be realized. For example, the Portfolio looks for companies
with an above average commitment to community affairs and charitable giving.
The Portfolio will not invest in an issuer which the Advisor
determines to be significantly engaged in:
1. The production of nuclear energy or the manufacture
of equipment to produce nuclear energy.
2. Business activities in support of repressive regimes.
3. The manufacture of weapon systems.
4. The manufacture of alcoholic beverages or tobacco products.
5. The operation of gambling casinos.
The Portfolio believes that social and technological change will continue to
transform America and the world into the next century. Those enterprises which
exhibit a social awareness measured in terms of the above attributes and
considerations should be better prepared to meet future societal needs for
goods and services. By responding to social concerns, these enterprises should
maintain flexibility and further social goals. In so doing they should not
only avoid the liability that may be incurred when a product or service is
determined to have a negative social impact or has outlived its usefulness,
but also be better positioned to develop opportunities to make a profitable
contribution to society. These enterprises should be ready to respond to
external demands and ensure that over the longer term they will be viable to
provide a positive return to both investors and society as a whole.
With respect to U.S. government securities, the Portfolio invests primarily in
debt obligations issued or guaranteed by agencies or instrumentalities of the
U.S. Government whose purposes further or are compatible with the Portfolio's
social criteria, such as obligations of the Student Loan Marketing
Association, rather than general obligations of the U.S. Government, such as
Treasury securities.
The above social screening criteria may be changed by the Board of Trustees
without shareholder approval.
TOTAL RETURN
The Portfolio may advertise total return for each class. Total return is based
on historical results and is not intended to indicate future performance.
Total return includes not only the effect of income dividends but also any
change in net asset value, or principal amount, during the stated period. A
cumulative total return reflects the performance of the class over a stated
period of time. An average annual total return reflects the hypothetical
annual compounded return that would have produced the same cumulative total
return if the performance had been constant over the entire period. Because
average annual returns tend to smooth out variations in the returns, you
should recognize that they are not the same as actual year-by-year results.
Further information about the Portfolio's performance is contained in its
Annual Report to Shareholders, which may be obtained without charge.
MANAGEMENT OF THE PORTFOLIO
The Board of Trustees supervises the Portfolio's activities and reviews its
contracts with companies that provide services to the Portfolio.
The Portfolio is a diversified series of Calvert Social Investment Fund (the
"Trust"), an open-end management investment company organized as a
Massachusetts business trust on December 14, 1981. The other series of the
Trust are the Managed Growth, Bond, Equity and Money Market Portfolios.
The Portfolio offers four classes of shares - - Class A, Class B, Class C and
Class I. The Classes have different sales charges and other expenses which
will result in different performance. They also have different shareholder
servicing, conversion and exchange privileges. This Prospectus relates only
to Class I. For information on the Portfolio's other Classes of shares,
contact Calvert at 1-800-327-2109.
The Trust is not required to hold annual shareholder meetings, but special
meetings may be called for purposes such as electing Trustees, changing
fundamental policies, or approving a management contract. As a shareholder, you
receive one vote for each share of the Portfolio you own. Matters affecting
classes differently will be voted on separately by the affected class.
Board of Trustees
REBECCA ADAMSON
President, First Nations Development Institute
RICHARD L. BAIRD, JR.
Executive Vice President, Family Health Council, Inc.
JOHN G. GUFFEY, JR.
Co-Chair, Calvert Social Investment Foundation
Treasurer and Director, Silby, Guffey & Co., Inc.
JOY V. JONES, Esq.
Attorney and Entertainment Manager
BARBARA J. KRUMSIEK
President, Chief Executive Officer and Vice Chair, Calvert Group, Ltd. and
subsidiaries
TERRENCE J. MOLLNER, Ed.D.
Founder and Chair, Trusteeship Institute, Inc.
Co-Chair, Calvert Social Investment Foundation
(Ms.) SYDNEY AMARA MORRIS
Unitarian Church of Vancouver, Canada
CHARLES T. NASON
Chairman, President, and Chief Executive Officer, The Acacia Group
D. WAYNE SILBY
President, Secretary, and Director, Silby, Guffey & Co., Inc.
Chair, CSIF Board of Trustees
Advisory Council
The Advisory Council is a resource to the Fund's Board of Trustees regarding
communication networks for the Fund and the application and refinement of the
Fund's social criteria.
TIMOTHY SMITH
(Chair) Executive Director, Interfaith Center on Corporate Responsibility
ROBERT BROWNE
President, Twenty-First Century Foundation
WILLIAM J. BYNUM
President and CEO, Enterprise Corporation for the Delta
JACK CHIN
Coordinator, Funder's Forum on Environmental Education
FRED DAVIE
Program Officer, Community and Resource Development, Ford Foundation
MARIAN WRIGHT EDELMAN
President & Founder, Children's Defense Fund
MICHAEL FISCHER
Program Officer, William and Flora Hewlett Foundation
ELIZABETH HARRIS
Vice President, UNC Partners, Inc.
SOPHIA BRACEY HARRIS
Founder and Executive Director, The Federation of Childcare Centers of
Alabama, Inc.
JAMES E. HEARD
President, Breakwater Holdings
HAZEL HENDERSON
Independent Futurist and Author
ERICA HUNT
Executive Director, Twenty-First Century Foundation
GRACE LECLAIR
Writer, Consultant and Theorist Concerning the Impacts of Economics on Family
and Community Life
KAI LEE
Professor of Environmental Studies and Director of the Center for
Environmental Studies, Williams College
JESSICA LIPNACK
President, The Networking Institute, Inc.
ROBERT CARTER RANDOLPH
Attorney and Mediator/Arbitrator Washington Arbitration and Mediaton Services
RUSTUM ROY
Professor of Geochemistry, Pennsylvania State University
BYRON RUSHING
State Representative, Massachusetts
MARC DAVID SARKADY
Leadership Consultant and International Facilitator
GAIL SNOWDEN
Group Executive, Community Banking Group, Bank of Boston
JEFFREY STAMPS
Chairman, The Networking Institute, Inc.
THOMAS STONEBACK
Vice President and Chief Administrative Officer, Rodale Press, Inc.
DARRELD RAY TURNER, II
Policy Advisor, Cherokee Nation of Oklahoma
DIANE WHITE
Owner, Blackberry
D. Wayne Silby, Chair of the Fund's Board of Trustees, serves as an ex officio
member of the Advisory Council.
Calvert Asset Management Company, Inc. serves as Advisor to the Portfolio.
Calvert Asset Management Company, Inc. ("CAMCO" or the "Advisor") is the
Portfolio's investment advisor. Founded in 1976, CAMCO serves as investment
advisor to over 30 mutual funds, including the first and largest family of
socially screened funds. CAMCO assets under management as of December 31,
1997 exceeded $5 billion. The Advisor provides the Portfolio with investment
supervision and management, certain administrative services and office space;
furnishes executive and other personnel to the Portfolio; and pays the
salaries and fees of all Trustees who are employees of the Advisor or its
affiliates. The Advisor may also assume and pay certain advertising and
promotional expenses of the Portfolio and reserves the right to compensate
broker-dealers in return for their promotional or administrative services. The
Portfolio pays all other operating expenses as noted in the Statement of
Additional Information.
Calvert Group is One of the Largest Investment Management Firms in the
Washington, D.C. Area.
Calvert Group, Ltd., parent of the Portfolio's investment advisor, shareholder
servicing agent, and distributor, is a subsidiary of Acacia Mutual Life
Insurance Company of Washington, D.C. Calvert Group is one of the largest
investment management firms in the Washington, D.C. area. Calvert Group, Ltd.
and its subsidiaries are located at 4550 Montgomery Avenue, Suite 1000N,
Bethesda, Maryland 20814.
State Street Global Advisors is the Portfolio's Subadvisor.
State Street Global Advisors ("Subadvisor" or "SSGA"), a division of State
Street Bank & Trust Company ("State Street"), is the Subadvisor to the
Portfolio. Its principal business office is located at 225 Franklin Street,
Boston, Massachusetts, USA. With over $400 billion under management SSGA
provides complete global investment management services from offices in the
United States, London, Sydney, Hong Kong, Tokyo, Toronto, Montreal, and Paris.
The Subadvisor's Global Enhanced Index Products Group manages the investment
and reinvestment of the assets of the Portfolio, although the Advisor screens
potential investments for compatibility with the Portfolio's social criteria.
State Street is one of the largest providers of securities processing and
record keeping services for U.S. mutual funds and pension funds and a pioneer
in the development of U.S. and international index funds. State Street is a
wholly owned subsidiary of State Street Corporation, a publicly held bank
holding company.
The Trust has obtained an exemptive order from the Securities and Exchange
Commission to permit the Portfolio, pursuant to approval by the Board of
Trustees, to enter into and materially amend contracts with the Portfolio's
Subadvisor (including replacing the Subadvisor) without shareholder approval.
See "Investment Advisor and Subadvisor" in the Statement of Additional
Information for further details.
The Advisor receives a fee based on a percentage of the Portfolio's assets.
Pursuant to the Investment Advisory Agreement, the Portfolio pays the Advisor
an annual fee, payable monthly, of 0.60% of the Portfolio's average daily net
assets. From this, the Advisor pays the Subadvisor an annual fee, payable
monthly of 0.35% of the Portfolio's average daily net assets, subject to a
minimum annual fee of $150,000.
The Advisor may, in its discretion, defer its fees or assume certain of the
Portfolio's operating expenses. The Investment Advisory Agreement provides
that the Advisor may later, to the extent permitted by law, recapture any fees
it deferred, or expenses it assumed during the two prior years.
Calvert Administrative Services Company provides administrative services for
the Portfolio.
Calvert Administrative Services Company ("CASC"), an affiliate of the Advisor,
provides certain administrative services for the Portfolio, including the
preparation of regulatory filings and shareholder reports, the determination
of periodic distributions per share, and the maintenance of certain portfolio
and general accounting records. For providing such services, CASC receives an
annual fee from the Portfolio, payable monthly, of 0.10% of the average daily
net assets for Class I Shares.
Calvert Distributors, Inc. serves as underwriter to market the Portfolio's
shares.
Calvert Distributors, Inc. ("CDI") is the Portfolio's principal underwriter
and distributor. Under the terms of its underwriting agreement with the
Portfolio, CDI markets and distributes the Portfolio's shares and is
responsible for payment of commissions and remitting distribution and/or
service fees to broker-dealers, banks, and financial services firms,
preparation of advertising and sales literature, and printing and mailing of
prospectuses to prospective investors.
The transfer agent keeps your account records.
Calvert Shareholder Services, Inc. is the Portfolio's shareholder servicing
agent. National Financial Data Services, Inc. 1004 Baltimore, Kansas City,
Missouri, 64105, is the transfer and dividend disbursing agent.
SHAREHOLDER GUIDE
Opening An Account
You can buy shares of the Portfolio in several ways.
An account application accompanies this prospectus. A completed and signed
application is required for each new account you open, regardless of the
method you choose for making your initial investment. Additional forms may be
required from corporations, associations, and certain fiduciaries. If you have
any questions or need extra applications, call Calvert Group at 800-327-2109.
Be sure to specify which class you wish to purchase.
Class I Shares - (Institutional)
Class I shares require a minimum account balance of $1,000,000. They have no
sales charge or Distribution Plan.
Arrangements with Broker-Dealers and Others
In compliance with the rules of the NASD, CDI may also pay additional
concessions, including non-cash promotional incentives, such as merchandise or
trips, to dealers employing registered representatives who have sold or are
expected to sell a minimum dollar amount of shares of the Portfolio and/or
shares of other Portfolios underwritten by CDI. CDI may make expense
reimbursements for special training of a broker-dealer's registered
representatives, advertising or equipment, or to defray the expenses of sales
contests. Brokers or others may receive different levels of compensation
depending on which Class of shares they sell.
HOW TO BUY SHARES
For Class I Accounts: Purchases must be by bank wire. Minimum initial Class I
investment is $1 million; minimum subsequent Class I investment is $25,000--
Call Calvert at 800-327-2109 for details.
NET ASSET VALUE
Net asset value, or "NAV," refers to the worth of one share. NAV is computed
per class by adding the value of all portfolio holdings, plus other assets,
deducting liabilities, and then dividing the result by the number of shares
outstanding. This value is calculated at the close of the Portfolio's business
day, which coincides with the closing of the regular session of the New York
Stock Exchange (normally 4:00 p.m. Eastern time). The Portfolio is open for
business each day the New York Stock Exchange is open. All purchases of
Portfolio shares will be confirmed and credited to your account in full and
fractional shares (rounded to the nearest 1/1000th of a share).
Portfolio securities and other assets are valued based on market quotations,
except that securities maturing within 60 days are valued at amortized cost.
If quotations are not available, securities are valued by a method that the
Board of Trustees believes accurately reflects fair value. Financial futures
are valued at the settlement price established each day by the board of trade
or exchange on which they are traded.
WHEN YOUR ACCOUNT WILL BE CREDITED
Before you buy shares, please read the following information to make sure your
investment is accepted and credited properly.
Your purchase will be processed at the next offering price based on the next
net asset value calculated after your order is received and accepted. All your
purchases must be made in U.S. dollars. No cash will be accepted. The
Portfolio reserves the right to suspend the offering of shares for a period of
time or to reject any specific purchase order.
EXCHANGES
Each exchange represents the sale of shares of one Portfolio and the purchase
of shares of another. Therefore, you could realize a taxable gain or loss on
the transaction.
If your investment goals change, the Calvert Group of Funds has a variety of
investment alternatives that includes common stock funds, tax-exempt and
corporate bond funds, and money market funds. The exchange privilege is a
convenient way to buy shares in other Calvert Group funds in order to respond
to changes in your goals or in market conditions. However, the Portfolio is
intended as a long-term investment and not for frequent short-term trades.
Before you make an exchange from the Portfolio, please note the following:
Call your broker or a Calvert representative for information and a prospectus
for any of Calvert's other Funds registered in your state. Read the prospectus
of the Fund into which you want to exchange for relevant information,
including class offerings. The exchange privilege is only available in states
where shares of the Fund into which you want to exchange are registered for
sale.
Complete and sign an application for an account in the Fund into which you
want to exchange, taking care to register your new account in the same name
and taxpayer identification number as your existing Calvert account(s).
Exchange instructions may then be given by telephone if you have not declined
telephone transaction privileges and the shares are not in certificate form.
See "Selling Your Shares" and "How to Sell Your Shares-- By Telephone and--
Exchange to Another Calvert Group Fund."
Shareholders (and those managing multiple accounts) who make two purchases and
two exchange redemptions of shares of the Portfolio during any 6-month period
will be given written notice that they may be prohibited from making
additional investments. This policy does not prohibit a shareholder from
redeeming shares of the Portfolio.
The Portfolio reserves the right to terminate or modify the exchange privilege
in the future upon 60 days' written notice.
OTHER CALVERT GROUP SERVICES
Calvert Information Network
24 hour performance and price information
Calvert Group has a round-the-clock telephone service for most classes and a
website at http://www.calvertgroup.com that lets existing customers obtain
prices, yields, performance information, account balances, and, by telephone
only, authorize certain transactions.
Telephone Transactions
Calvert may record all telephone calls.
If you have telephone transaction privileges, you may purchase, redeem, or
exchange shares, wire funds and use Calvert Money Controller by telephone. You
automatically have telephone privileges unless you elect otherwise. The Trust,
the transfer agent, the shareholder servicing agent, and their affiliates are
not liable for acting in good faith on telephone instructions relating to your
account, so long as they follow reasonable procedures to determine that the
telephone instructions are genuine. Such procedures may include recording the
telephone calls and requiring some form of personal identification. You should
verify the accuracy of telephone transactions immediately upon receipt of your
confirmation statement.
Optional Services
The easiest way to establish optional services on your Calvert Group account
is to select the options you desire when you complete your account
application. If you wish to add other options later, you may have to provide
us with additional information and a signature guarantee. Please call Calvert
Investor Relations at 800-368-2745 for further assistance. For our mutual
protection, we may require a signature guarantee on certain written
transaction requests. A signature guarantee verifies the authenticity of your
signature, and may be obtained from any bank, savings and loan association,
credit union, trust company, broker-dealer firm or member of a domestic stock
exchange. A signature guarantee cannot be provided by a notary public.
Householding of General Mailings
Householding reduces Portfolio expenses and saves paper and trees for the
environment.
If you have multiple accounts with Calvert, you may receive combined mailings
of some shareholder information, such as statements, confirmations,
prospectuses, semi-annual and annual reports. Please contact Calvert Investor
Relations at 800-368-2745 to receive additional copies of information.
Special Services and Charges
The Portfolio pays for shareholder services but not for special services that
are required by a few shareholders, such as a request for a historical
transcript of an account. You may be required to pay a research fee for these
special services.
HOW TO SELL YOUR SHARES
You may redeem all or a portion of your shares on any business day. Your
shares will be redeemed at the next net asset value calculated after your
redemption request is received. See below for specific requirements necessary
to make sure your redemption request is accepted. Redemptions may be made in
kind if, in the sole opinion of the Advisor, it is in the best interest of the
Portfolio to do so.
Redemption Requirements To Remember
To ensure acceptance of your redemption request, please follow the procedures
described here and below.
Once your shares are redeemed, the proceeds will normally be sent to you on
the next business day, but if making immediate payment could adversely affect
the Portfolio, it may take up to 7 days. When the New York Stock Exchange is
closed (or when trading is restricted) for any reason other than its customary
weekend or holiday closings, or under any emergency circumstances as
determined by the Securities and Exchange Commission, redemptions may be
suspended or payment dates postponed.
Minimum account balance is $1,000,000 for Class I.
If you want the money to be wired to a bank not previously authorized, then a
voided bank check must be provided. To add instructions to wire to a
destination not previously established, or if you would like funds sent to a
different address or another person, your letter must be signature guaranteed.
Type of Registration Requirements
Corporations, Associations Letter of instruction and corporate resolution,
signed by person(s) authorized to act on the
account, accompanied by signature
guarantee(s).
Trusts Letter of instruction signed by the Trustee(s)
(as Trustees), with a signature guarantee.
(If the Trustee's name is not registered on
your
account, provide a copy of the trust document
certified within the last 60 days.)
By Telephone
Please call 800-368-2745. You may redeem shares from your account by telephone
and have your money wired to an address or bank you have previously
authorized. See "Telephone Transactions." Class I redemptions must be made by
wire.
DIVIDENDS, DISTRIBUTIONS AND TAXES
Each year, the Portfolio distributes substantially all of its net investment
income and capital gains to shareholders.
Dividends from the Portfolio's net investment income are declared and paid
annually. Net investment income generally consists of the interest income,
profits from securities loans, net short-term capital gains, if any, and
dividends, less expenses. Distributions of net long-term capital gains, if
any, are normally declared and paid by the Portfolio once a year; however, the
Portfolio does not anticipate making any such distributions unless available
capital loss carryovers have been used or have expired. Dividend and
distribution payments will vary among classes because of different fees.
Distribution Payment Options
Dividends and distributions are automatically reinvested in additional shares,
unless on the account application you request to have them paid to you in cash
(by check or by Calvert Money Controller). You may also request to have your
dividends and distributions from the Portfolio invested at net asset value
("NAV") in shares of any other Calvert Group Portfolio. If you choose to have
them reinvested in the same Portfolio, the new shares will be purchased at the
NAV on the reinvest date, which is generally 1 to 3 days prior to the payment
date. You must be a shareholder on the record date to receive dividends. You
must notify the Portfolio in writing prior to the record date if you want to
change your payment options.
"Buying a Dividend"
At the time of purchase, the share price of each class of the Portfolio may
reflect undistributed income, capital gains or unrealized appreciation of
securities. Any income or capital gains from these amounts which are later
distributed to you are fully taxable as dividends or capital gains
distributions. On the record date for a distribution, the Portfolio's per
share value is reduced by the amount of the distribution. If you buy shares
just before the record date ("buying a dividend") you will pay the full price
for the shares and then receive a portion of the price back as a taxable
distribution.
Federal Taxes
The Portfolio normally distributes all net income and capital gain to
shareholders. These distributions are taxable to you regardless of whether
they are taken in cash or reinvested. Distributions of net investment income
are taxable as ordinary income; distributions of net long-term capital gains
are taxable as long-term capital gains regardless of how long you have held
the shares. Dividends and distributions declared during October, November or
December and paid in January of the following year are taxable in the year
they are declared. The Portfolio will mail you Form 1099-DIV in January
indicating the federal tax status of your dividends and any capital gain
distribution paid to you during the year. If distributions exceed the
Portfolio's net investment income and capital gain for the year, the excess
will reduce your tax basis for your shares in the Portfolio.
You may realize a capital gain or loss when you sell or exchange shares.
If you sell or exchange your Portfolio shares you will have a short or
long-term capital gain or loss, depending on how long you owned the shares
which were sold. In January, the Portfolio will mail you Form 1099-B
indicating the proceeds from all sales, including exchanges. You should keep
your annual year-end account statements to determine the cost (basis) of the
shares to report on your tax returns.
Taxpayer Identification Number, Back-up Withholding
If we do not have your correct Social Security or Taxpayer Identification
Number ("TIN") and a signed certified application or Form W-9, federal law
requires the Portfolio to withhold 31% of your dividends, capital gain
distributions, and redemptions. In addition, you may be subject to a fine. You
will also be prohibited from opening another account by exchange. If this TIN
information is not received within 60 days after your account is established,
your account may be redeemed at the current NAV on the date of redemption. The
Portfolio reserves the right to reject any new account or any purchase order
for failure to supply a certified TIN.
To Open an Account:
800-327-2109
Prospectus
March 11, 1998
Calvert Social Investment Fund
Managed Index Portfolio
Class I (Institutional Investors)
Performance and Prices:
Calvert Information Network
24 hours, 7 days a week
800-368-2745
Service for Existing Accounts:
800-368-2745
TDD for Hearing Impaired:
800-541-1524
Branch Office:
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
Registered, Certified
or Overnight Mail:
Calvert Group
c/o NFDS, 6th Floor
1004 Baltimore
Kansas City, MO 64105
Calvert Group Web-Site
Address: http://www.calvertgroup.com
PRINCIPAL UNDERWRITER
Calvert Distributors, Inc.
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
Table of Contents
Portfolio Expenses 2
Investment Objective and Policies 3
Investment Techniques and Related Risks 3
Socially Responsible Investment Criteria 5
Total Return 7
Management of the Portfolio 7
SHAREHOLDER GUIDE: 11
How to Buy Shares 11
Net Asset Value 12
When Your Account Will Be Credited 12
Exchanges 12
Other Calvert Group Services 13
How to Sell Your Shares 14
Dividends, Distributions and Taxes 14
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1 An optimizer is a mathematical algorithm for maximizing or minimizing an
objective function relative to some set of constraints - here, to minimize
tracking error (active risk) while using only those stocks which pass the
Portfolio's social screens and limiting transaction costs.
