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. 28 XX
and/or
REGISTRATION STATEMENT UNDER THE
INVESTMENT COMPANY ACT OF 1940
Amendment No. 28 XX
Calvert Social Investment Fund
(Exact Name of Registrant as Specified in Charter)
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
(Address of Principal Executive Offices)
Registrant's Telephone Number: (301) 951-4800
William M. Tartikoff, Esq.
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
(Name and Address of Agent for Service)
It is proposed that this filing will become effective
___ Immediately upon filing on March 31, 1998
pursuant to paragraph (b) pursuant to paragraph (b)
XX 60 days after filing ___ on January 28, 1999
pursuant to paragraph (a) pursuant to paragraph (a)
of Rule 485.
<PAGE>
PROSPECTUS
January 31, 1999
Equity Funds:
Calvert Social Investment Fund (CSIF) Balanced
CSIF Managed Index
CSIF Equity
Calvert Capital Accumulation
Calvert World Values International Equity
Calvert New Vision Small Cap
Bond and Money Market Funds:
CSIF Bond
CSIF Money Market
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.
TABLE OF CONTENTS
About the Funds:
Investment objective, strategy, past performance
Fees and Expenses
Principal Investment Practices and Risks
About Social Investing:
Socially Responsible Investment Criteria
Investment Selection Process
High Social Impact Investments
Special Equities
About Your Investment
Subadvisors and Portfolio Managers
Advisory Fees
How to Buy Shares
Getting Started
Choosing a Share Class
Calculation of CDSC/Waiver
Distribution and Service Fees
Account Application
Important - How Shares are Priced
When Your Account Will be Credited
Other Calvert Group Features (Exchanges, Minimum Account Balance, etc.)
Dividends, Capital Gains and Taxes
How to Sell Shares
Financial Highlights
Exhibit A- Reduced Sales Charges (Class A)
Exhibit B- Service Fees and Other Arrangements with Dealers
CSIF Balanced
Advisor Calvert Asset Management Company, Inc.
Subadvisors: Brown Capital Management, Inc.
NCM Capital Management, Inc.
Objective
CSIF Balanced seeks to achieve a competitive total return through an actively
managed portfolio of stocks, bonds and money market instruments which offer
income and capital growth opportunity and which satisfy the investment and
social concern criteria.
Principal investment strategies --The Fund typically invests about 60% of its
assets in stocks and 40% in bonds or other fixed-income investments. Stock
investments are primarily common stock in large-cap companies, while the
fixed-income investments are primarily a wide variety of investment grade
bonds.
CSIF Balanced invests in a combination of stocks, bonds and money market
instruments in an attempt to provide a complete investment portfolio in a
single product. The Advisor rebalances the Fund quarterly to adjust for
changes in market value. The Fund is a large-cap, growth-oriented U.S.
domestic portfolio, although it may have other investments, including some
foreign securities. For the equity portion, the Fund seeks companies with
better than average expected growth rates at lower than average valuations.
The fixed-income portion reflects an active trading strategy, seeking total
return.
Equity investments are selected by the two Subadvisors, while the Advisor
manages the fixed-income assets and determines the overall mix for the Fund
depending upon its view of market conditions and economic outlook.
Principal risks-- You could lose money on your investment in the Fund, or the
Fund could underperform for any of the following reasons:
The stock or bond market goes down
The individual stocks and bonds in the Fund do not perform as well as expected
For the fixed-income portion of the Fund, the Advisor's forecast as to
interest rates is not correct
o The Advisor's allocation among different sectors of the stock and bond
markets does not perform as well as expected
An investment in the Fund is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency.
Bar Chart and Performance Table
The bar chart and table below show the Fund's annual returns and its long-term
performance. The chart shows how the performance of the Class A shares has
varied from year to year. The table compares the Fund's performance over time
to that of the Standard & Poor's 500 Index and the Lehman Aggregate Bond
Index, a widely recognized, unmanaged index of common stock and bonds prices,
respectively. It also shows the Fund's returns compared to the Lipper
Balanced Funds Index, a composite index of the annual return of mutual funds
that have an investment goal similar to that of the Fund. The Fund's past
performance does not necessarily indicate how the Fund will perform in the
future.
The return for the Fund's other classes of shares offered by this prospectus
will differ from the Class A returns shown in the bar chart, depending upon
the expenses of that Class. The bar chart does not reflect any sales charge
that you may be required to pay upon purchase or redemption of the Fund's
shares. Any sales charge will reduce your return. The average total return
table shows returns with the maximum sales charge deducted. No sales charge
has been applied to the index and average used for comparison in the table.
BAR CHART
Calendar year (Class A return at NAV)
% return
1988 1989 1990 1991 1998
___% ___% ___% ____% ___%
Best Quarter: (of period shown ) QX '9X
Worst Quarter: (of period shown QX '9X
Average annual total returns
for the periods ended December 31, 1998
1 year 5 years 10 years
CSIF Balanced: Class A ______$ _____% _____%
CSIF Balanced: Class B 1 NA NA
CSIF Balanced: Class C _____% 2 NA
S&P 500 Index Monthly
Reinvested _____% _____% ______%
Lehman Aggregate
Bond Index TR _____% _____% _______%
Lipper Balanced Funds _____% ______% ______%
Index
1 From inception (4/1/98) ___%;
2 From inception (3/ /94) ___%
CSIF Managed Index
Advisor Calvert Asset Management Company, Inc.
Subadvisor: State Street Global Advisors
Objective
CSIF Managed Index seeks a total return after expenses which exceeds over time
the total return of the Russell 1000 Index. It seeks to obtain this objective
while maintaining risk characteristics similar to those of the Russell 1000
Index and through investments in stocks that meet the fund's investment and
social criteria. This objective may be changed by the Fund's Board of
Trustees/Directors without shareholder approval.
Principal investment strategies: The Fund invests in stocks that meet the
social criteria and creates a portfolio whose characteristics closely resemble
the characteristics of the Russell 1000 Index, while emphasizing the stocks
which it believes offer the greatest potential of return. CSIF Managed Index
follows an enhanced index management strategy. Instead of 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 Fund's performance, relative to the Index. The Fund may purchase
stocks not in the Russell 1000 Index, but at least 65% of the Fund's total
assets will be invested in stocks that are in the Index. Any investments not
in the Index will meet the Fund's social screening criteria and be selected to
closely mirror the Index's risk/return characteristics. The Subadvisor
rebalances the Fund quarterly to maintain its relative exposure to the Index.
Principal risks: You could lose money on your investment in the Fund, or the
Fund could underperform the stock market for any of the following reasons:
The stock market goes down
The individual stocks in the Fund or the index modeling portfolio do not
perform as well as expected
An index fund has operating expenses; a market index does not. The Fund-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
An investment in the Fund is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency. The Fund is not sponsored, sold, promoted or endorsed by
the Frank Russell Company.
CSIF Equity
Advisor Calvert Asset Management Company, Inc.
Subadvisors: Atlanta Capital Management Company, L.L.C.
Objective
CSIF Equity seeks growth of capital through investment in stocks of issuers in
industries believed to offer opportunities for potential capital appreciation
and which meet the Fund's investment and social criteria.
Principal investment strategies - The Fund invests primarily in the common
stocks of large-cap companies, having, on average, market capitalization of at
least $1 billion. Investment returns will be mostly from changes in the price
of the Fund's holdings (capital appreciation).
Principal risks: You could lose money on your investment in the Fund, or the
Fund could underperform for any of the following reasons:
The stock market goes down
The individual stocks in the Fund do not perform as well as expected
An investment in the Fund is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency.
Bar Chart and Performance Table
The bar chart and table below show the Fund's annual returns and its long-term
performance. The chart shows how the performance of the Class A shares has
varied from year to year. The table compares the Fund's performance over time
to that of the Standard & Poor's 500 Index. This is a widely recognized,
unmanaged index of common stock prices. It also shows the Fund's returns
compared to the Lipper Growth Funds Index, a composite index of the annual
return of mutual funds that have an investment goal similar to that of the
Fund. The Fund's past performance does not necessarily indicate how the Fund
will perform in the future.
The return for each of the Fund's other Classes of shares offered by this
prospectus will differ from the Class A returns shown in the bar chart,
depending upon the expenses of that Class. The bar chart does not reflect any
sales charge that you may be required to pay upon purchase or redemption of
the Fund's shares. Any sales charge will reduce your return. The average
total return table shows returns with the maximum sales charge deducted. No
sales charge has been applied to the index and average used for comparison in
the table.
BAR CHART
Calendar year (Class A return at NAV)
% return
1988 1989 1990 1991 1998
___% ___% ____% ___% ___%
Best Quarter: (of periods shown) QX '9X
Worst Quarter: (of periods shown) QX '9X
Average annual total returns
for the periods ended December 31, 1998
1 year 5 years 10 years
CSIF Equity: Class A _____% ____% _____%
CSIF Equity: Class B 1 N/A N/A
CSIF Equity: Class C _____% 2 N/A
S&P 500 Index Monthly
Reinvested _____% _____% _____%
Lipper Growth Funds _____% _____% _____%
Index
1 From inception (4/1/98) ____%;
2 From inception (3/ /94) ____%
Calvert Capital Accumulation
Advisor Calvert Asset Management Company, Inc.
Subadvisor: Brown Capital Management, Inc.
Objective
CWVF Capital Accumulation seeks to provide long-term capital appreciation by
investing primarily in mid-cap stocks that meet the Fund's investment and
social criteria. This objective may be changed by the Fund's Board of
Trustees/Directors without shareholder approval.
Principal investment strategies -- investments are primarily in the common
stocks of mid-size companies. Returns in the Fund will be mostly from the
changes in the price of the Fund's holdings (capital appreciation.) The Fund
currently defines mid-cap companies as those within the range of market
capitalizations of the S & P's Mid-cap 400 Index. Stocks chosen for the Fund
combine growth and value characteristics or offer the opportunity to buy
growth at a reasonable price.
Principal risks: You could lose money on your investment in the Fund, or the
Fund could underperform for any of the following reasons:
The stock market goes down
The individual stocks in the Fund do not perform as well as expected
The Fund is non-diversified. Compared to other funds, the Fund may invest
more of its assets in a smaller number of companies. Gains or losses on a
single stock may have greater impact on the Fund.
An investment in the Fund is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency.
Bar Chart and Performance Table
The bar chart and table below show the Fund's annual returns and its long-term
performance. The chart shows how the performance of the Class A shares has
varied from year to year. The table compares the Fund's performance over time
to that of the Standard & Poor's Mid-Cap 400 Index. This is a widely
recognized, unmanaged index of common stock prices. It also shows the Fund's
returns compared to the Lipper Mid-Cap Funds Index, a composite index of the
annual return of mutual funds that have an investment goal similar to that of
the Fund. The Fund's past performance does not necessarily indicate how the
Fund will perform in the future.
The return for the Fund's other classes of shares offered by this prospectus
will differ from the Class A returns shown in the bar chart, depending upon
the expenses of that Class. The bar chart does not reflect any sales charge
that you may be required to pay upon purchase or redemption of the Fund's
shares. Any sales charge will reduce your return. The average total return
table shows returns with the maximum sales charge deducted. No sales charge
has been applied to the index and average used for comparison in the table.
BAR CHART
Calendar year (Class A return at NAV)
% return
1988 1989 1990 1991 1998
___% ___% ____% ____% ___%
Best Quarter: (of periods shown) QX '9X
Worst Quarter: (of periods shown) QX '9X
Average annual total returns
for the periods ended December 31, 1998
1 year 5 years 10 years
CWVF Capital Accum: Class A _____% _____% _____%
CWVF Capital Accum: Class B 1 NA NA
CWVF Capital Accum: Class C _____% 2 NA
S&P Mid-Cap 400 Index _____% _____% _____%
Lipper Mid-Cap Funds Index _____% _____% _____%
1 From inception (4/1/98) ____%;
2 From inception (3/ /94) ____%
Calvert World Values International Equity Fund
Advisor Calvert Asset Management Company, Inc.
Subadvisor: Murray Johnstone International, Ltd.
Objective
CWVF International Equity seeks to provide a high total return consistent with
reasonable risk by investing primarily in a globally diversified portfolio of
stocks that meet the Fund's investment and social criteria.
Principal investment strategies: The Fund identifies those countries with
markets and economies that it believes currently provide the most favorable
climate for investing. The Fund invests primarily in the common stocks of
mid- to large-cap companies using a value approach. The Fund invests primarily
in more developed economies and markets, with some investments in emerging
markets. No more than 5% of Fund assets are invested in the U.S. (excluding
High Social Impact and Special Equities investments).
Principal risks: You could lose money on your investment in the Fund, or the
Fund could underperform for any of the following reasons:
The stock markets (including those outside the U.S.) go down
The individual stocks in the Fund do not perform as well as expected
Foreign currency values go down versus the U.S. dollar
An investment in the Fund is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency.
Bar Chart and Performance Table
The bar chart and table below show the Fund's annual returns and its long-term
performance. The chart shows how the performance of the Class A shares has
varied from year to year. The table compares the Fund's performance over time
to that of the Morgan Stanley Capital International EAFE Index. This is a
widely recognized, unmanaged index of common stock prices around the world.
It also shows the Fund's returns compared to the Lipper International Funds
Index, a composite index of the annual return of mutual funds that have an
investment goal similar to that of the Fund. The Fund's past performance does
not necessarily indicate how the Fund will perform in the future.
The return for the Fund's other Classes of shares offered by this prospectus
will differ from the Class A returns shown in the bar chart, depending upon
the expenses of that Class. The bar chart does not reflect any sales charge
that you may be required to pay upon purchase or redemption of the Fund's
shares. Any sales charge will reduce your return. The average total return
table shows returns with the maximum sales charge deducted. No sales charge
has been applied to the index and average used for comparison in the table.
BAR Chart
Calendar year (Class A return at NAV)
% return
1988 1989 1990 1991 1998
_____% _____% _____% ____% ____%
Best Quarter: (of periods shown) QX '9X
Worst Quarter: (of periods shown) QX '9X
Average annual total returns
for the periods ended December 31, 1998
1 year 5 years 10 years
CWVF International Eq.: Class A _____% _____% _____%
CWVF International Eq.: Class B 1 _____% NA
CWVF International Eq.: Class C _____% 2 NA
MSCI EAFE Index GD _____% _____% _____%
Lipper International Funds Index _____% _____% _____%
1 From inception (4/1/98) ____%;
2 From inception (3/ /94) ____%
Calvert New Vision Small Cap
Advisor Calvert Asset Management Company, Inc.
Subadvisor: Awad & Asset Management Company
Objective
New Vision Small Cap seeks to provide long-term capital appreciation by
investing primarily in small-cap stocks that meets the Fund's investment and
social criteria. This objective may be changed by the Fund's Board of
Trustees/Directors without shareholder approval.
Principal Investment Strategies -- investments are primarily in the common
stocks of small-cap companies. Returns in the Fund will be mostly from the
changes in the price of the Fund's holdings (capital appreciation.) The Fund
currently defines small-cap companies as those with market capitalization of
$1 billion or less at the time the Fund initially invests.
Principal risks: You could lose money on your investment in the Fund, or the
Fund could underperform for any of the following reasons:
The stock market goes down
The individual stocks in the Fund do not perform as well as expected
Prices of small-cap stocks may respond to market activity differently than
larger more established companies
An investment in the Fund is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency.
Bar Chart and Performance Table
The bar chart and table below show the Fund's annual returns and its long-term
performance. The chart shows how the performance of the Class A shares has
varied from year to year. The table compares the Fund's performance over time
to that of the Russell 2000 Index. This is a widely recognized, unmanaged
index of common stock prices. It also shows the Fund's returns compared to
the Lipper Small-Cap Funds Index, a composite index of the annual return of
mutual funds that have an investment goal similar to that of the Fund. The
Fund's past performance does not necessarily indicate how the Fund will
perform in the future.
The return for the Fund's other Classes of shares offered by this prospectus
will differ from the Class A returns shown in the bar chart, depending upon
the expenses of that Class. The bar chart does not reflect any sales charge
that you may be required to pay upon purchase or redemption of the Fund's
shares. Any sales charge will reduce your return. The average total return
table shows returns with the maximum sales charge deducted. No sales charge
has been applied to the index and average used for comparison in the table.
BAR CHART
Calendar year (Class A return at NAV)
% return
1988 1989 1990 1991 1998
___% ___% ___% _____% _____%
Best Quarter: (of periods shown) QX '9X
Worst Quarter: (of periods shown) QX '9X
Average annual total returns
for the periods ended December 31, 1998
1 year 5 years 10 years
New Vision Small Cap: Class A _____% 1 NA
New Vision Small Cap: Class B 2 NA NA
New Vision Small Cap: Class C _____% 3 NA
Russell 2000 Index TR _____% _____% _____%
Lipper Small-Cap Funds
Index _____% _____% _____%
1 From inception ( ) ____%;
2 From inception ( ) ____%
3 From inception ( ) ____%
CSIF Bond
Advisor: Calvert Asset Management Company, Inc.
Objective
CSIF Bond 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 meeting the Fund's investment and
social criteria.
Principal investment strategies: The Fund uses an active strategy, seeking
relative value to earn incremental income. The Fund typically invests at
least 65% of its assets in investment grade debt securities.
Principal risks You could lose money on your investment in the Fund, or the
Fund could underperform , most likely for any of the following reasons:
The bond market goes down
The individual bonds in the Fund do not perform as well as expected
The Advisor's forecast as to interest rates is not correct
o The Advisor's allocation among different sectors of the bond market does
not perform as well
as expected
The Fund is non-diversified. Compared to other funds, the Fund may invest
more of its assets in a smaller number of companies. Gains or losses on a
single stock may have greater impact on the Fund.
An investment in the Fund is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency.
Bar Chart and Performance Table
The bar chart and table below show the Fund's annual returns and its long-term
performance. The chart shows how the performance of the Class A shares has
varied from year to year. The table compares the Fund's performance over time
to that of the Lehman Aggregate Bond Index . This is a widely recognized,
unmanaged index of bond prices. It also shows the Fund's returns compared to
the Lipper Corporate Debt Funds A Rated Index, a composite index of the annual
return of mutual funds that have an investment goal similar to that of the
Fund. The Fund's past performance does not necessarily indicate how the Fund
will perform in the future.
The return for the Fund's other Classes of shares offered by this prospectus
will differ from the Class A returns shown in the bar chart, depending upon
the expenses of that Class. The bar chart does not reflect any sales charge
that you may be required to pay upon purchase or redemption of the Fund's
shares. Any sales charge will reduce your return. The average total return
table shows returns with the maximum sales charge deducted. No sales charge
has been applied to the index and average used for comparison in the table.
BAR CHART
Calendar year (Class A return at NAV)
% return
1988 1989 1990 1991 1998
___% _____% _____% _____% _____%
Best Quarter: (of periods shown) QX '9X
Worst Quarter: (of periods shown) QX '9X
Average annual total returns
for the periods ended December 31, 1998
1 year 5 years 10 years
CSIF Bond: Class A _____% _____% _____%
CSIF Bond: Class B 1 NA NA
CSIF Bond: Class C 2 NA NA
Lehman Aggregate
Bond Index TR _____% _____% _____%
Lipper Corporate Debt
Funds A Rated Index _____% _____% _____%
1 From inception (4/1/98) ____%
2 From inception ( 98) ____%
CSIF Money Market
Advisor: Calvert Asset Management Company, Inc.
Objective
CSIF Money Market seeks to provide the highest level of current income,
consistent with liquidity, safety and security of capital, through investment
in money market instruments meeting the Fund's investment and social criteria
Principal investment strategies - The Fund invests in high quality, money
market instruments, such as commercial paper, variable rate demand notes,
corporate, agency and taxable municipal obligations. All investments must
comply with the SEC money market fund requirements under Rule 2a-7. The Fund's
yield will change in response to market interest rates. In general, as market
rates go up so will the Fund's yield, and vice versa. Although the Fund tries
to keep the value of its shares constant at $1.00 per share, extreme changes
in market rates, and or sudden credit deterioration of a holding could, cause
the value to decrease. The Fund limits the amount it invests in any one
issuer to try to lessen its exposure.
Principal risks -- An investment in the Fund is not a bank deposit and is not
insured or guaranteed by the Federal Deposit Insurance Corporation or any
other government agency. Although the Fund seeks to preserve the value of
your investment at $1.00 per share, it is still possible to lose money by
investing in the Fund.
Bar Chart and Performance Table
The bar chart and table below show the Fund's annual returns and its long-term
performance. The chart shows how the performance has varied from year to
year. The table compares the Fund's returns over time to the Lipper Money
Market Funds Index, a composite index of the annual return of mutual funds
that have an investment goal similar to that of the Fund. The Fund's past
performance does not necessarily indicate how the Fund will perform in the
future.
BAR CHART
Calendar year
% return
1988 1989 1990 1991 1998
___% ___% ___% ____% ____%
Best Quarter: (of periods shown) QX '9X
Worst Quarter: (of periods shown) QX '9X
Average annual total returns
for the periods ended December 31, 1998
1 year 5 years 10 years
CSIF Money Market __% __% __%
Lipper Money Market
Funds Index __% __% __%
For current yield information, call __________________.
.
Fees and Expenses
This table describes the fees and expenses that you may pay if you buy and
hold shares of a Fund. Shareholder fees are paid directly from your account;
annual Fund operating expenses are deducted from Fund assets.
CLASS A Bal Indx1 Eqty Cap Int'l NV Bd MM
Shareholder fees
4.75 4.75 4.75 4.75 4.75 4.75 3.75 None
Maximum sales charge (load)
imposed on
purchases
(as a percentage of offering
price)
Maximum deferred sales
charge (load) None2 None2 None2 None2 None2 None2 None2 None
(as a percentage of
purchase or
redemption
proceeds, whichever
is lower)
Maximum account fee
Annual fund operating expenses
Management fees
Distribution and service (12b-1) fees
Other expenses
Total annual fund operating expenses
CLASS B
Shareholder fees
Maximum sales charge (load)
imposed on None None None None None None None None
purchases (as a percentage
of offering price)
Maximum deferred sales
charge (load) 5%6 5%6 5%6 5%6 5%6 5%6 4%7 None
(as a percentage of
purchase or redemption
proceeds, whichever
is lower)
Maximum account fee
Annual fund operating expenses
Management fees
Distribution and service (12b-1) fees
Other expenses
Total annual fund operating expenses
CLASS C
Shareholder fees
Maximum sales charge (load)
imposed on None None None None None None None None
purchases (as a percentage
of offering price)
Maximum deferred sales
charge (load) 1%8 1%8 1%8 1%8 1%8 1%8 1%8 None
(as a percentage of purchase
or redemption
proceeds, whichever is lower)
Maximum account fee
Annual fund operating expenses
Management fees
Distribution and service (12b-1) fees
Other expenses
Total annual fund operating expenses
Explanation of Fees and Expenses Table
1 Expenses are based on estimates for the current fiscal year.
2 Purchases of Class A shares of $1 million or more are not subject to
front-end sales charges, but may be subject to a 1.0% contingent deferred
sales charge on shares redeemed within 1 year of purchase. (See "How to Buy
Shares - Class A)
4 For each account with a balance of less than $5000 (less than $1000 for
IRAs), the Fund charges a monthly account maintenance fee of $1.00.
5 For each account with a balance of less than $1000, the Fund charges a
monthly account maintenance fee of $3.00.
6 A contingent deferred sales charge is imposed on the proceeds of Class B
shares redeemed within 6 years, subject to certain exceptions. The charge is
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 year, 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"
7 A contingent deferred sales charge is imposed on the proceeds of Class B
shares of CSIF Bond redeemed within 4 years, subject to certain exceptions.
The charge is 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"
8 A contingent deferred sales charge is imposed on the proceeds of Class C
shares redeemed within one year. The charge is a percentage of net asset
value at the time of purchase or redemption, whichever is less. See
"Calculation of Contingent Deferred Sales Charge"
Annual Fund Operating Expenses are based on historical expenses. Management
fees include the Subadvisory fees paid by the Advisor ("CAMCO") to the
Subadvisors, and, if applicable, the administrative fee paid by the Fund to
Calvert Administrative Services Company, an affiliate of CAMCO. The
Management fees for CSIF Balanced include a performance adjustment which could
cause the fee to be as high as 0.85% or as low as 0.55% , depending on the
Fund's performance. The Management fees for Calvert Capital Accumulation
include a performance adjustment which could cause the fee to be as high as
0.85% or as low as 0.75%, depending on the Fund's performance.
For the fiscal year ended 9/30/98 CAMCO waived fees and or reimbursed
expenses for certain Funds. The net amount (after waiver/reimbursement) of
Annual Fund Operating Expenses actually paid by the Fund was: __%, __%, and
__% for Class A, Class B, and Class C. This waiver/reimbursement arrangement
[is expected to continue through (date) or/may be terminated at any time by
CAMCO.] (Include if applicable for other Funds)
Each Fund's 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").
Example
This example is intended to help you compare the cost of investing in a Fund
with the cost of investing in other mutual funds. The example assumes that:
You invest $10,000 in the Fund for the time periods indicated;
Your investment has a 5% return each year; and
The Fund's operating expenses remain the same.
Although your actual costs may be higher or lower, under these assumptions
your costs would be:
Number of Years Investment Class A Class B Class B Class C Class C
Is held
CSIF Balanced W/ Redem. No Redem. W/Redem. No Redem.
1 $___ $___ $___ $___ $___
3 $___ $___ $___ $___ $___
5 $___ $___ $___ $___ $___
10 $___ $___ $___ $___ $___
CSIF Managed Index W/ Redem. No Redem. W/Redem. No Redem.
1 $___ $___ $___ $___ $___
3 $___ $___ $___ $___ $___
5 $___ $___ $___ $___ $___
10 $___ $___ $___ $___ $___
CSIF Equity W/ Redem. No Redem. W/Redem. No Redem.
1 $___ $___ $___ $___ $___
3 $___ $___ $___ $___ $___
5 $___ $___ $___ $___ $___
10 $___ $___ $___ $___ $___
CWVF Capital Accumulation W/ Redem. No Redem. W/Redem. NoRedem.
1 $___ $___ $___ $___ $___
3 $___ $___ $___ $___ $___
5 $___ $___ $___ $___ $___
10 $___ $___ $___ $___ $___
CWVF International Equity W/ Redem. No Redem. W/Redem. NoRedem.
1 $___ $___ $___ $___ $___
3 $___ $___ $___ $___ $___
5 $___ $___ $___ $___ $___
10 $___ $___ $___ $___ $___
New Vision Small Cap W/ Redem. No Redem. W/Redem. No Redem.
1 $___ $___ $___ $___ $___
3 $___ $___ $___ $___ $___
5 $___ $___ $___ $___ $___
10 $___ $___ $___ $___ $___
CSIF Bond W/ Redem. No Redem. W/Redem. No Redem.
1 $___ $___ $___ $___ $___
3 $___ $___ $___ $___ $___
5 $___ $___ $___ $___ $___
10 $___ $___ $___ $___ $___
CSIF Money Market W/ Redem. No Redem. W/Redem. No Redem.
1 $___ n/a n/a n/a n/a
3 $___ n/a n/a n/a n/a
5 $___ n/a n/a n/a n/a
10 $___ n/a n/a n/a n/a
Principal Investment Practices and Risks
The most concise description of each Fund's risk profile is under the
risk-return summary for each Fund. The Funds are also permitted to invest in
certain other investments and to use certain investment techniques that have
higher risks associated with them. On the following pages are brief
descriptions of these other principal investments and techniques, along with
their risks.
For each of the investment practices listed, the table below shows each Fund's
limitations as a percentage of its assets and the principal types of risk
involved. (See the pages following the table for a description of the types
of risks). Numbers in this table show maximum allowable amount only; for
actual usage, consult the Fund's annual/semi-annual reports.
@ Fund currently uses
0 Permitted, but not typically used (% of assets allowable, if restricted)
- -- Not permitted
xN Allowed up to x% of fund's net assets
xT Allowed up to x% of Fund's total assets
NA not applicable to this type of fund
Investment Practices
Mgd
Active Trading Strategy/Turnover involves Bal.Index Eqty Int'l Cap NV Bd MM
selling a security soon after purchase. An @ 0 0 0 0 0 @ NA
active trading strategy causes a fund to have
higher portfolio turnover compared to other
funds and higher transaction costs, such as
commissions and custodian and settlement fees,
and may increase a Fund's tax liability.
Risks: Opportunity, Market and Transaction.
Temporary Defensive Positions.
During adverse market, economic or political 0 0 0 0 0 0 0 NA
conditions, the Fund may depart from its (35T) (35T)
principal investment strategies by increasing
its investment in U.S. government securities
and other short-term interest-bearing
securities. Risks: Opportunity.
Conventional Securities
Foreign Securities. Securities issued by 25N -- 25N @ 25N 15T 25N NA
companies located outside the U.S. and/or
traded primarily on a foreign exchange.
Risks: Market, Currency, Transaction,
Liquidity, Information and Political.
Small Cap Stocks. Investing in small 0 NA 0 0 0 @ NA NA
companies involves greater risk than with more
established companies. Small cap stock prices
are more volatile and the companies often have
limited product lines, markets, financial
resources, and management experience. Risks:
Market, Liquidity and Information.
Investment grade bonds. Bonds rated BBB/Baa 0 NA 0 0 0 0 @ NA
or higher or comparable unrated bonds. Risks:
Interest Rate, Market and Credit.
Below-investment grade bonds. Bonds rated
below BBB/Baa or comparable unrated bonds are
considered junk bonds. They are subject to
greater credit risk than investment grade
bonds. Risks: Credit, Market, Interest Rate,
Liquidity and Information.
Unrated debt securities. Bonds that have not @ NA 0 0 0 0 0 @3
been rated by a recognized rating agency; the
Advisor has determined the credit quality based
on its own research. Risks: Credit, Market,
Interest Rate, Liquidity and Information.
Illiquid securities. Securities which cannot 15N 15N 15N 15N 15N 15N 15N 15N
be readily sold because there is no active
market. Risks: Liquidity, Market and
Transaction.
Unleveraged derivative securities @ NA 0 0 0 0 @ @4
Asset-backed securities. Securities are backed
by unsecured debt, such as credit card debt.
These securities are often guaranteed or
over-collateralized to enhance their credit
quality. Risks: Credit, Interest Rate and
Liquidity.
Mortgage-backed securities. Securities are @ NA 0 0 0 0 @ @5
backed by pools of mortgages, including
passthrough certificates, and other senior
classes of collateralized mortgage obligations
(CMOs). Risks: Credit, Extension, Prepayment,
Liquidity and Interest Rate.
Participation interests. Securities 0 NA 0 0 0 0 @ @6
representing an interest in another security or
in bank loans. Risks: Credit, Interest Rate
and Liquidity.
Leveraged derivative instruments Currencyv 0 NA 0 5T 5T -- 0 NA
contracts. Contracts involving the right or
obligation to buy or sell a given amount of
foreign currency at a specified price and
future date. Risks: Currency, Leverage,
Correlation, Liquidity and Opportunity.
Options on securities and indices. Contracts 5T 5T 5T 5T 5T 5T 5T 5T
giving the holder the right but not the
obligation to purchase or sell a security (or
the cash value, in the case of an option on an
index) at a specified price within a specified
time. In the case of selling (writing) options,
the Funds will write call options only if they
already own the security (if it is "covered").
Risks: Interest Rate, Currency, Market,
Leverage, Correlation, Liquidity, Credit and
Opportunity.
Futures contract. Agreement to buy or sell a 0 0 0 0 0 0 0 0
specific amount of a commodity or financial 5N 5N 5N 5N 5N 5N 5N 5N
instrument at a particular price on a specific
future date. Risks: Interest Rate, Currency,
Market, Leverage, Correlation, Liquidity and
Opportunity.
Structured securities 0 NA NA NA 0 NA 0 NA
Indexed and/or leveraged mortgage-backed and
other debt securities, including principal-only
and interest-only securities, leveraged
floating rate securities, and others. These
securities tend to be highly sensitive to
interest rate movements and their performance
may not correlate to these movements in a
conventional fashion. Risks: Credit, Interest
Rate, Extension, Prepayment, Market, Leverage,
Liquidity and Correlation.
The Funds have additional investment policies and restrictions that are not
principal to their investment strategies (for example, repurchase agreements,
real estate investment trusts, borrowing, pledging, and reverse repurchase
agreements, securities lending, when-issued securities, concentration and
short sales.) These policies and restrictions are discussed in the SAI.
Types of Investment Risk
Correlation risk
This occurs when a Fund "hedges"- uses one investment to offset the Fund's
position in another. If the two investments do not behave in relation to one
another the way Fund managers expect them to, then unexpected or undesired
results may occur. For example, a hedge may eliminate or reduce gains as well
as offset losses.
Credit risk
The risk that the issuer of a security or the counterparty to an investment
contract may default or become unable to pay its obligations when due.
Currency risk
Currency risk occurs when a Fund buys or sells a security denominated in
foreign currency. Foreign currencies "float" in value against the U.S.
dollar. Adverse changes in foreign currency values can cause investment
losses when a Fund's investments are converted to U.S. dollars.
Extension risk
The risk that an unexpected rise in interest rates will extend the life of a
mortgage-backed security beyond the expected prepayment time, typically
reducing the security's value.
Information risk
The risk that information about a security or issuer might not be available,
complete, accurate or comparable.
Interest rate risk
The risk that changes in interest rates will adversely affect the value of an
investor's securities. When interest rates rise, the value of fixed-income
securities will generally fall. Conversely, a drop in interest rates will
generally cause an increase in the value of fixed-income securities.
Longer-term securities and zero coupon/"stripped" coupon securities ("strips")
are subject to greater interest rate risk.
Leverage risk
The risk that occurs in some securities or techniques which tend to magnify
the effect of small changes in an index or a market. This can result in a
loss that exceeds the amount actually invested.
Liquidity risk
The risk that occurs when investments cannot be readily sold. A Fund may have
to accept a less-than-desirable price to complete the sale of an illiquid
security or may not be able to sell it at all.
Management risk
This risk exists in all mutual funds and means that a Fund's portfolio
management practices might not work to achieve their desired result.
Market risk
The risk that exists in all mutual funds and means the risk that securities
prices in a market, a sector or an industry will fluctuate, and that such
movements might reduce an investment's value.
Opportunity risk
The risk of missing out on an investment opportunity because the assets needed
to take advantage of it are committed to less advantageous investments or
strategies.
Political risk
The risk that may occur with foreign investments, and means that the value of
an investment may be adversely affected by nationalization, taxation, war,
government instability or other economic or political actions or factors.
Prepayment risk
The risk that anticipated prepayments may occur, reducing the value of a
mortgage-backed security.
Transaction risk
The risk that a Fund may be delayed or unable to settle a transaction or that
commissions and settlement expenses may be higher than usual.
INVESTMENT SELECTION PROCESS
Investments are selected on the basis of their ability to contribute to the
dual objectives of financial soundness and social criteria.
Potential investments for a Fund are first selected for financial soundness
and then evaluated according to that Fund's social criteria. To the greatest
extent possible, CSIF and CWVF seek to invest in companies that exhibit
positive accomplishments with respect to one or more of the social criteria.
Investments for all Funds must meet the minimum standards for all its
financial and social criteria.
Although each Fund's social criteria 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 investment by a Portfolio does not constitute endorsement
or validation by that Fund, nor does the exclusion of an investment
necessarily reflect failure to satisfy the Fund's social criteria. Investors
are invited to send a brief description of companies they believe might be
suitable for investment.
Socially Responsible Investment Criteria
The Funds invest in accordance with the 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. In
addition, we believe that there are long-term benefits in an investment
philosophy that demonstrates concern for the environment, labor relations,
human rights and community relations. Those enterprises that exhibit a social
awareness in these issues should be better prepared to meet future societal
needs. 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. These enterprises should be ready to respond to
external demands and ensure that over the longer term they will be viable to
seek to provide a positive return to both investors and society as a whole.
Each Fund has developed social investment criteria, detailed below. These
criteria represent standards of behavior which few, if any, organizations
totally satisfy. As a matter of practice, evaluation of a particular
organization in the context of these criteria will involve subjective judgment
by CAMCO and the Subadvisors. All social criteria may be changed by the Board
of Trustees/Directors without shareholder approval.
Calvert Social Investment Fund
CSIF seeks to invest in companies that:
Deliver safe products and services in ways that sustain our natural
environment. For example, CSIF looks for companies that produce energy from
renewable resources, while avoiding consistent polluters.
Manage 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.
Negotiate fairly with their workers, provide an environment supportive of
their wellness, do not discriminate on the basis of race, gender, religion,
age, disability, ethnic origin, or sexual orientation, do not consistently
violate regulations of the EEOC, and provide 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.
Foster 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 companies that the Advisor determines to be
significantly engaged in:
Production, or the manufacture of equipment, to produce nuclear energy
Business activities in support of repressive regimes
Manufacture of weapon systems
Manufacture of alcoholic beverages or tobacco products
Operation of gambling casinos
With respect to U.S. government securities, CSIF invests primarily in debt
obligations issued or guaranteed by agencies or instrumentalities of the U.S.
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 U.S. Government, such as Treasury
securities.
Calvert World Values International Equity Fund
The spirit of Calvert World Values International Equity Fund's social criteria
is similar to CSIF, 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 seeks to invest in companies that:
Achieve excellence in environmental management. We select investments that
take positive steps toward preserving and enhancing our natural environment
through their operations and products. We avoid companies with poor
environmental records.
Have positive labor practices. We consider the International Labor
Organization's basic conventions on worker rights as a guideline for our labor
criteria. 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. We avoid companies that demonstrate a pattern of engaging in
forced, compulsory, or child labor.
CWVF avoids investing in companies that:
Contribute to human rights abuses in other countries2
Produce nuclear power or nuclear weapons, or have more than 10% of revenues
derived from the production or sale of weapons systems
Derive more than 10% of revenues from the production of alcohol or tobacco
products, but 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
Calvert World Values Capital Accumulation Fund
Calvert New Vision Small Cap Fund
The Funds carefully review company policies and behavior regarding social
issues important to quality of life such as:
environment
employee relations
product criteria
weapons systems
nuclear energy
human rights
Both Funds will avoid investing in companies that have:
Significant or historical patterns of violating environmental regulations, or
otherwise have an egregious environmental record
Significant or historical patterns of discrimination against employees on the
basis of race, gender, religion, age, disability or sexual orientation, or
that have major labor-management disputes
Nuclear power plant operators and owners, or manufacturers of key components
in the nuclear power process
Significantly engaged in weapons production( including weapons systems
contractors and major nuclear weapons systems contractors)
Significantly involved in the manufacture of tobacco or alcohol products
Products or offer services that, under proper use, are considered harmful
The Advisor will seek to review companies' overseas operations consistent with
the social criteria stated above.
While Capital Accumulation and New Vision may invest in companies that exhibit
positive social characteristics, they make no explicit claims to seek out
companies with such practices.
High Social Impact Investments - CSIF Balanced, Bond and Equity, Calvert World
Values International Equity, Capital Accumulation and New Vision
High Social Impact Investments is a program that targets a percentage of the
Fund's assets (up to 1% for each of CSIF Balanced, CSIF Equity and CSIF Bond
and New Vision and up to 3% for each of CWVF International Equity and CWVF
Capital Accumulation) to directly support the growth of community-based
organizations for the purposes of promoting business creation, housing
development, and economic and social development of urban and rural
communities. These types of investments offer a rate of return below the
then-prevailing market rate, and are considered illiquid and unrated and
below-investment grade. They also involve a greater risk of default or price
decline than investment grade securities. However, they have a significant
social return by making a tremendous difference in our local communities.
The Funds have received an exemptive order to permit them to invest those
assets allocated for investment in high social impact investments through the
purchase of Community Investment Notes from the Calvert Social Investment
Foundation. The Calvert Social Investment Foundation is a non-profit
organization, legally distinct from Calvert Group, organized as a charitable
foundation for the purpose of increasing public awareness and knowledge of the
concept of socially responsible investing. It has instituted the Calvert
Community Investments program to raise assets from individual investors and
then invest these assets directly in non-profit or not-for-profit community
development organizations that focus on low income housing, economic
development and business development in urban and rural communities.
Special Equities - CSIF Balanced and Calvert World Values International Equity
CSIF Balanced and CWVF International Equity each have a Special Equities
investment program that allows the Fund to promote especially promising
approaches to social goals through privately placed investments. The
investments are generally venture capital investments in small, untried
enterprises. The Special Equities Committee of each Fund identifies,
evaluates, and selects the Special Equities investments. Special Equities
involve a high degree of risk-- they are subject to liquidity, information,
and if a debt investment, credit risk. Special Equities are valued under the
direction and control of the Fund's Board.
About Calvert Group
Calvert Asset Management Company, Inc.(4550 Montgomery Avenue, Suite 1000N,
Bethesda, MD 20814) ("CAMCO") is the Funds' investment advisor and provides
day-to-day investment management services to the Funds. It has been managing
mutual funds since 1976. CAMCO is the investment advisor for over 25 mutual
funds, including the first and largest family of socially screened funds. As
of December 31, 1998, CAMCO had over $____ billion in assets under management.
CAMCO uses a team approach to its management of CSIF Bond (since February
1997) and the fixed-income assets of CSIF Balanced Portfolio (June 1995).
Reno J. Martini, Senior Vice President and Chief Investment Officer, heads
this team and oversees the management of all Calvert Funds for CAMCO. Mr.
Martini has over 18 years of experience in the investment industry and has
been the head of CAMCO's asset management team since 1985.
Subadvisors and Portfolio Managers
Brown Capital Management, Inc., 809 Cathedral Street, Baltimore, Maryland, has
managed part of the equity investments of CSIF Balanced since 1996, and
Capital Accumulation since 1994. In 1997, Brown Capital became the sole
Subadvisor for Capital Accumulation. The firm has over $3.6 billion in assets
under management. It uses a bottom-up approach that incorporates
growth-adjusted price earnings, concentrating on mid-/large-cap growth stocks.
Eddie C. Brown, founder and President of Brown Capital Management, Inc., heads
the portfolio management team for Capital Accumulation and Brown Capital's
portion of CSIF Balanced. He brings over 24 years of management experience to
the Funds, and has held positions with T. Rowe Price Associates and Irwing
Management Company. Mr. Brown is a frequent panelist on "Wall Street Week
with Louis Rukeyser" and is a member of the Wall Street Week Hall of Fame.
NCM Capital Management Group, Inc., 103 West Main Street, Durham, NC 27701,
has managed part of the equity investments of CSIF Balanced since 1995. The
firm has over $__ billion in assets under management. 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. Mr. Sloan has more than __ years of experience in the investment
industry, and is a frequent panelist on Wall Street Week with Louis Rukeyser.
STATE STREET GLOBAL ADVISORS (SSgA); 225 Franklin St., Boston, MA, was
established in 1978 as an investment management division of the State Street
Bank and Trust Company. SSgA is a pioneer in the development of domestic and
international index funds, and has managed CSIF Managed Index since its
inception. The firm currently manages over $400 billion in assets, including
$120 billion in index and enhanced index products.
SSgA's portfolio management team consists of several members, headed by Arlene
Rockefeller. She joined SSgA in 1982, with 10 years experience in investment
computer systems. Ms. Rockefeller is currently Principal and Unit Head of
Global Enhanced Equities. She manages a variety of SSgA's equity and tax-free
funds.
ATLANTA CAPITAL MANAGEMENT COMPANY, LLCLA; Two Midtown Plaza, Suite 1600, 1360
Peachtree Street, Atlanta, GA 30309 has managed CSIF Equity since September
1998. The firm has $2.8 billion under management.
Daniel W. Boone, III, C.F.A. heads the Atlanta portfolio management team for
CSIF Equity. He is a senior Partner and senior investment professional for
Atlanta Capital. He has been with the firm since 1976. He specializes in
equity portfolio management and research. Before joining the firm, he held
positions with the international firm of Lazard, Freres in New York, and
Wellington Management Company. Mr. Boone has earned a MBA from the Wharton
School of University of Pennsylvania, where he graduated with distinction, and
a B.A. from Davidson College.
MURRAY JOHNSTONE INTERNATIONAL, LTD, 875 North Michigan Ave., Suite 3415,
Chicago, IL 60611. The firm has __________ in assets, and has managed
Calvert World Values International Equity Fund since its inception.
Andrew Preston heads the portfolio management team for International Equity.
He joined Murray Johnstone International in 1985, and has held positions as
investment analyst in the United Kingdom and U.S. Department, and Fund Manager
in the Japanese Department. He was appointed director of the company in
1993. Prior to joining Murray Johnstone, he was a member of the Australian
Foreign Service and attended University in Australia and Japan.
AWAD & Asset Management Company (AWAD); 250 Park Avenue, New York, NY 10177, a
subsidiary of Raymond James & Associates, has managed the New Vision Small Cap
Fund since 1997. The firm has over $800 million in assets under management
and specializes in the management of small-capitalization growth stocks. They
emphasize a growth-at-a-reasonable-price investment philosophy.
James Awad, President of Awad, founded the firm in 1992. He heads the
portfolio management team for New Vision Small Cap. Mr. Awad has more than 30
years experience in the investment business, holding positions with firms such
as Neuberger & Berman and First Investors Corporation.
Each of the Funds has obtained an exemptive order from the Securities and
Exchange Commission to permit the Fund, pursuant to approval by the Board of
Trustees/Directors, to enter into and materially amend contracts with the
Fund's Subadvisor without shareholder approval. See "Investment Advisor and
Subadvisor" in the SAI for further details.
Advisory Fees
The following table shows the aggregate annual advisory fee paid to CAMCO
by each Fund for the most recent fiscal year as a percentage of that Fund's
average daily net assets .
Fund Advisory Fee 1
CSIF Balanced 0.--% 2
CSIF Managed Index 0.60% 3 4
CSIF Equity 0.--% 2
CSIF Bond 0.--% 2
CSIF Money Market 0.--%
CWVF International Equity -.--% 2
CWVF Capital Accumulation 0.--% 2
TCF New Vision Small Cap 0.--% 2
1 CAMCO waived part of its advisory fee for the following Funds; the full
contractual rate each Fund is obligated to pay CAMCO is: CSIF Bond, 0.65%
(list others if applicable.)
2 These advisory agreements were changed by a vote of shareholders in
_________ 1999. The new advisory fee will be: CSIF, Balanced, 0.375%; CSIF
Equity, 0.45%; CSIF Bond, 0.30%; CWVF International Equity, 0.70%; CWVF
Capital Accumulation, 0.60%; and TCF New Vision Small Cap, 0.70%.
3 CSIF Managed Index has not had a full year of operations. Its advisory
agreement provides for a fee of 0.60% of the Portfolio's first $500 million of
average daily net assets and 0.55% of any such assets over $500 million.
4 CSIF Managed Index has a recapture provision which allows CAMCO to recapture
from the Fund in a later year any fees CAMCO waives or expenses it assumes,
subject to certain limitations.
CSIF Balanced has a performance adjustment which could cause the fee to be as
high as 0.85% or low as 0.55%, depending on its performance relative to the
relevant index (CAMCO: Lehman Aggregate Bond; NCM: Russell 3000, Brown: S&P
500). CWVF Capital Accumulation has a performance adjustment which could
cause the fee to be as high as 0.85% or as low as 0.75%, depending on its
performance relative to the S&P 400 Midcap Index.
A Word About the Year 2000 (Y2K) and Our Computer Systems
Like other mutual funds, CAMCO and its service providers use computer systems
for all aspects of our business -- processing shareholder and fund
transactions, fund accounting, executing trades, and pricing securities just
to name a few. Many current software programs cannot distinguish between the
year 2000 and the year 1900. This can cause problems with retirement plan
distributions, dividend payment software, transaction software, and numerous
other areas that could impact the Funds. Calvert Group has been reviewing all
of its computer systems for Y2K compliance. Although, at this time, there can
be no assurance that there will be no negative impact on the Funds, the
Advisor, the underwriter, transfer agent and custodian have advised the Funds
that they have been actively working on any necessary changes to their
computer systems to prepare for Y2K and expect that their systems, and those
of their outside service providers, will be adapted in time for that event.
For more information, please visit our website at www.calvertgroup.com.
SHAREHOLDER GUIDE
HOW TO BUY SHARES
GETTING STARTED - BEFORE YOU OPEN AN ACCOUNT
You have a few decisions to make before you open an account in a mutual fund.
First, decide which fund or funds best suits your needs and your goals.
Second, decide what kind of account you want to open. Calvert offers
individual, joint, trust, Uniform Gifts/Transfers to Minor Accounts,
Traditional and Roth IRAs, Qualified Profit-Sharing and Money Purchase Plans,
SIMPLE IRAs, SEP-IRAs, 403(b)(7) accounts, and several other types of
accounts. Minimum investments are lower for the retirement plans.
Then decide which class of shares is best for you.
You should make this decision carefully, based on:
the amount you wish to invest;
the length of time you plan to keep the investment; and
the Class expenses.
Choosing a Share Class
CSIF Money Market offers only one class of shares, which is sold without a
sales charge. The other Funds in this prospectus offer three different Classes
(Class A, B, or C). This chart shows the difference in the Classes and the
general types of investors who may be interested in each Class:
Class A: Front-End Sales Class B: Deferred Sales Class C: Deferred
Charge Charge for 6 years (4 years Sales Charge for 1 year
for CSIF Bond)
For all investors, For investors who plan to For investors who are
particularly those hold the shares at least 6 investing for at least
investing a substantial years (4 for CSIF Bond). one year, but less
amount who plan to hold The expenses of this class than six years. The
the shares for a long are higher than Class A, expenses of this Class
period of time. because of the 12b-1 fee. are higher than Class
A, because of the
12b-1 fee.
Sales charge on each No sales charge on each No sales charge on
purchase of 4.75% or purchase, but if you sell each purchase, but if
less (3.75% or less for your shares within 6 years, you sell shares within
CSIF Bond), depending on you will pay a deferred 1 year, then you will
the amount you invest. sales charge of 5% or less pay a deferred sales
on shares you sell (4% or charge of 1% at that
less on shares of CSIF Bond time.
you sell within 4 years of
purchase).
Class A shares have an Class B shares have an Class C shares have an
annual 12b-1 fee of up annual 12b-1 fee of 1.00%. annual 12b-1 fee of
to 0.35%. 1.00%.
Class A shares have Your shares will Class C shares have
lower annual expenses automatically convert to higher annual expenses
due to a lower 12b-1 fee. Class A shares after 8 than Class A and there
years (6 years for CSIF is no automatic
Bond), reducing your future conversion to Class A.
annual expenses.
Shares exempt from the If you are investing more If you are investing
front-end sales charge than $250,000, you should more than $1,000,000,
because they were sold invest in Class A or C. you should invest in
in a single purchase of Class A.
$1,000,000 or more will
be subject to a 1.0%
deferred sales charge
for 1 year.
Class A
If you choose Class A, you will pay a sales charge at the time of each
purchase. This table shows the charges both as a percentage of offering price
and as a percentage of the amount you invest. The term "offering price"
includes the front-end sales charge. If you invest more, the sales charge will
be lower. For example, if you invest more than $50,000, or if your cumulative
purchases or the value in your account is more than $50,0003, then the sales
charge is reduced to 3.75%.
CSIF Balanced
CSIF Equity
CSIF Managed Index
CWVF International Equity
CWVF Capital Accumulation
TCF New Vision Small Cap CSIF Bond
Your investment in Class Sales Chg. % of Amt. Sales Chg. % % of
A shares %of offering Invested of offering Amt.
price price Invested
Less than $50,000 4.75% 4.99% 3.75% 3.90%
$50,000 but less than 3.75% 3.90% 3.00% 3.09%
$100,000
$100,000 but less than 2.75% 2.83% 2.25% 2.30%
$250,000
$250,000 but less than 1.75% 1.78% 1.75% 1.78%
$500,000
$500,000 but less than 1.00% 1.01% 1.00% 1.01%
$1,000,000
$1,000,000 and over None* None* None* None*
* Purchases of $1,000,000 or more may be subject to a one year CDSC of 1.00%.
See the "Calculation of Contingent Deferred Sales Charge and Waiver of Sales
Charges."
The Class A front-end sales charge may be waived for certain purchases or
investors, such as participants in certain group retirement plans or other
qualified groups and clients of registered investment advisers. For details on
these and other purchases that may qualify for a reduced sales charge, see
Exhibit A.
Class B
If you choose Class B, there is no front-end sales charge like Class A, but if
you sell the shares within the first 6 years (or 4 years for CSIF Bond), you
will have to pay a "contingent deferred" sales charge ("CDSC"). This means
that you do not have to pay the sales charge unless you sell your shares
within the first 6 years after purchase (or 4 years for CSIF Bond). Keep in
mind that the longer you hold the shares, the less you will have to pay in
deferred sales charges.
Time Since Purchase CSIF Balanced
CSIF Equity
CSIF Managed Index
CWVF International Equity
CWVF Capital Accumulation
TCF New Vision Small Cap CSIF Bond
CDSC % CDSC %
1st year 5% 4%
2nd year 4% 3%
3rd year 4% 2%
4th year 3% 1%
5th year 2% None
6th year 1% None
After 6 years None None
Calculation of Contingent Deferred Sales Charge and Waiver of Sales Charges
The CDSC will not be charged on shares you received as dividends or from
capital gains distributions or on any capital appreciation (gain in the value)
of shares that are sold.
Shares that are not subject to the CDSC will be redeemed first, followed by
shares you have held the longest. The CDSC is calculated by determining the
share value at both the time of purchase and redemption and then multiplying
whichever value is less by the percentage that applies as shown above. For
example, if you invested $5,000 in CSIF Equity Class B shares three years ago,
and it is now worth $5,750, the CDSC will be calculated by taking the lesser
of the two values ($5,000), and multiplying it by 4%, for a CDSC of $200. If
you choose to sell only part of your shares, the capital appreciation for
those shares only is included in the calculation, rather than the capital
appreciation for the entire account.
The CDSC on Class B Shares will be waived in the following circumstances:
Redemption upon the death or disability of the shareholder, plan participant,
or beneficiary.4
Minimum required distributions from retirement plan accounts for shareholders
70 1/2 and older.5
The return of an excess contribution or deferral amounts, pursuant to sections
408(d)(4) or (5), 401(k)(8), 402(g)(2), or 401(m)(6) of the Internal Revenue
Code.
Involuntary redemptions of accounts under procedures set forth by the Fund's
Board of Trustees/Directors.
A single annual withdrawal under a systematic withdrawal plan of up to 10% per
year of the shareholder's account balance.6
Class C
If you choose Class C, there is no front-end sales charge like Class A, but if
you sell the shares within the first year, you will have to pay a 1% CDSC.
Class C may be a good choice for you if you plan to buy shares and hold them
for at least 1 year, but not more than five or six years.
More on Comparison of Classes
The Example at the beginning of this prospectus compares the expenses of each
class, with and without redemptions. The Example includes both direct expenses
that you pay, such as the sales charges, and indirect expenses that are paid
by each Fund. The indirect expenses include management, shareholder servicing,
and 12b-1 fees. These fees may vary from class to class and can impact your
total return. Consider your investment goals and time period for investing to
help decide which class is best for you.
Distribution and Service Fees
Each Fund has adopted a plan under Rule 12b-1 of the Investment Company Act of
1940 that allows the Fund to pay distribution fees for the sale and
distribution of its shares. The distribution plan also pays service fees to
persons (such as your financial professional) for services provided to
shareholders. Because these fees are paid out of a Fund's assets on an ongoing
basis, over time, these fees will increase the cost of your investment and may
cost you more than paying other types of sales charges. Please see Exhibit B
for more service fee information.
The table below shows the maximum annual percentage payable under the
distribution plan, and the amount actually paid by each Fund for the most
recent fiscal year. The fees are based on average daily net assets of the
particular Class.
Maximum Payable under Plan/Amount Actually Paid
CSIF Money Market 0.25%/0.00%
Class A Class B Class C
CSIF Balanced 0.35%/0.24 %1.00%/1.00% 1.00%/1.00%
CSIF Bond 0.35%/0.20% 1.00%/1.00% 1.00%/1.00%
CSIF Equity 0.35%/0.23% 1.00%/1.00% 1.00%/1.00%
CSIF Managed Index 0.25%/_.__% 1.00%/1.00% 1.00%/1.00%
CWVF International Equity 0.25%/0.25% 1.00%/1.00% 1.00%/1.00%
CWVF Capital Accumulation 0.35%/0.35% 1.00%/1.00% 1.00%/1.00%
TCF New Vision Small Cap 0.25%/0.25% 1.00%/1.00% 1.00%/1.00%
NEXT STEP - ACCOUNT APPLICATION
Complete and sign an application for each new account. When multiple classes
of shares are offered, please specify which class you wish to purchase. For
more information, contact your broker or our shareholder services department
at 800-368-2748.
Minimum To Open an Account Minimum additional investments - $250
CSIF Money Market $1,000
CSIF Balanced $1,000
CSIF Bond $1,000
CSIF Equity $1,000
CSIF Managed Index $5,000
CWVF International Equity $2,000
CWVF Capital Accumulation $2,000
TCF New Vision Small Cap $2,000
Please make your check payable Calvert Group
to the Fund and mail it to: PO Box ______ (new accounts -- include
application)
PO Box ______ (subsequent investments -- include investment slip)
Kansas City, MO 64141-6544
By Registered, Calvert Group
Certified, or c/o NFDS, 6th Floor
Overnight Mail 1004 Baltimore
Kansas City, MO 64105-1807
At the Calvert Office Visit the Calvert Office to make investments by check.
See the back cover page for the address.
Important - How Shares are Priced
The price of shares is based on each Fund's net asset value ("NAV"). NAV is
computed by adding the value of a Fund's holdings plus other assets,
subtracting liabilities, and then dividing the result by the number of shares
outstanding. If a Fund has more than one class of shares, the NAV of each
class will be different, 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.
CSIF Money Market is valued according to the "amortized cost" method, which is
intended to stabilize the NAV at $1 per share. If market quotations are not
readily available, securities are valued by a method that the 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
("NYSE") (normally 4 p.m. ET). Each Fund is open for business each day the
NYSE is open.
Some Funds hold securities that are primarily listed on foreign exchanges that
trade on days when the NYSE is closed. These Funds do not price shares on days
when the NYSE is closed, even if foreign markets may be open. As a result, the
value of the Fund's shares may change on days when you will not be able to buy
or sell your shares.
When Your Account Will Be Credited
Your purchase will be processed at the next NAV calculated after your order is
received and accepted. All of your purchases must be made in US dollars and
checks must be drawn on US banks. No cash will be accepted. Each Fund reserves
the right to suspend the offering of shares for a period of time or to reject
any specific purchase order. As a convenience, check purchases received at
Calvert's office in Bethesda, Maryland will be sent by overnight delivery to
the Transfer Agent and will be credited the next business day upon receipt.
Any check purchase received without an investment slip may cause delayed
crediting. If your check does not clear your bank, your purchase will be
canceled and you will be charged a $10 fee plus any costs incurred. Check or
electronic funds transfer purchases will be on hold for up to 10 business
days. All purchases will be confirmed and credited to your account in full and
fractional shares (rounded to the nearest 1/1000th of a share).
CSIF Money Market
Your purchase will be credited at the net asset value calculated after your
order is received and accepted. If the Transfer Agent receives your wire
purchase by 5 p.m. ET, 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
credited to the account. CSIF Money Market may send monthly statements in lieu
of confirmations of purchases and redemptions.
OTHER CALVERT GROUP FEATURES
CALVERT INFORMATION NETWORK
For 24 hour performance and account information call 800-368-2745 or visit
http://www.calvertgroup.com
You can obtain current performance and pricing information, verify account
balances, and authorize certain transactions with the convenience of one phone
call, 24 hours a day.
ACCOUNT SERVICES
By signing up for services when you open your account, you avoid having to
obtain a signature guarantee. If you wish to add services at a later date, a
signature guarantee to verify your signature may be obtained from any bank,
trust company and savings and loan association, credit union, broker-dealer
firm or member of a domestic stock exchange. A notary public cannot provide a
signature guarantee.
CALVERT MONEY CONTROLLER
Calvert Money Controller allows you to purchase or sell shares by electronic
funds transfer without the time delay of mailing a check or the added expense
of a wire. Use this service to transfer up to $300,000 electronically. Allow
one or two business days after you place your request for the transfer to take
place. Money transferred to purchase new shares will be subject to a hold of
up to 10 business days before redemption requests will be honored. Transaction
requests must be received by 4 p.m. ET. You may request this service on your
initial account application.
TELEPHONE TRANSACTIONS
You may purchase, redeem, or exchange shares, wire funds and use Calvert Money
Controller by telephone if you have pre-authorized service instructions. You
receive telephone privileges automatically when you open your account unless
you elect otherwise. For our mutual protection, the Fund, the shareholder
servicing agent and their affiliates use precautions such as verifying
shareholder identity and recording telephone calls to confirm instructions
given by phone. A confirmation statement is sent for most transactions; please
review this statement and verify the accuracy of your transaction immediately.
EXCHANGES
Calvert Group offers a wide variety of investment options that includes common
stock funds, tax-exempt and corporate bond funds, and money market funds (call
your broker or Calvert representative for more information). We make it easy
for you to purchase shares in other Calvert funds if your investment goals
change. The exchange privilege offers flexibility by allowing you to exchange
shares on which you have already paid a sales charge from one mutual fund to
another at no additional charge.
Complete and sign an account application, 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.
Before you make an exchange, please note the following:
Each exchange represents the sale of shares of one Fund and the purchase of
shares of another. Therefore, you could realize a taxable gain or loss.
You may exchange shares acquired by reinvestment of dividends or distributions
into another Calvert Fund at no additional charge.
Shares may only be exchanged for shares of the same class of another Calvert
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 Fund during any six-month
period will be given written notice and may be prohibited from placing
additional investments. This policy does not prohibit a shareholder from
redeeming shares of any Fund, and does not apply to trades solely between
money market funds.
Each Fund reserves the right to terminate or modify the exchange privilege
with 60 days' written notice.
COMBINED GENERAL MAILINGS (Householding)
Multiple accounts with the same social security number will receive one
mailing per household of information such as prospectuses and semi-annual and
annual reports. You may request further grouping of accounts to receive fewer
mailings. Separate statements will be generated for each separate account and
will be mailed in one envelope for each combination above.
SPECIAL SERVICES AND CHARGES
Each Fund pays for shareholder services but not for special services that are
required by a few shareholders, such as a request for a historical transcript
of an account or a stop payment on a draft. You may be required to pay a fee
for these special services; for example, the fee for stop payments is $25.
If you are purchasing shares through a program of services offered by a
broker/dealer or financial institution, you should read the program materials
together with this Prospectus. Certain features may be modified in these
programs, and the broker/dealer or financial institution may impose charges
for their services.
MINIMUM ACCOUNT BALANCE
Please maintain a balance in each of your Fund accounts of at least $1,000 per
class ($5,000 for the CSIF Managed Index). If the balance in your account
falls below the minimum during a month, a fee of $1 may be charged to your
account (CSIF Money Market and CSIF Managed Index only). If due to
redemptions, the account falls below the minimum, your account 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 will be closed after 30 days if the
balance is not brought up to the required minimum amount.
DIVIDENDS, CAPITAL GAINS AND TAXES
Each Fund pays dividends from its net investment income as shown below. 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.
CSIF Money Market Accrued daily, paid monthly
CSIF Bond Paid monthly
CSIF Balanced Paid quarterly
CSIF Equity Paid annually
CSIF Managed Index Paid annually
CWVF International Equity Paid annually
CWVF Capital Accumulation Paid annually
TCF New Vision Small Cap Paid annually
Dividend payment options
Dividends and any distributions are automatically reinvested in the same Fund
at NAV (without sales charge), unless you elect to have amounts of $10 or more
paid in cash (by check or by Calvert Money Controller). Dividends and
distributions from any Calvert Group Fund may be automatically invested in an
identically registered account in any other Calvert Group Fund at NAV. If
reinvested in the same account, new shares will be purchased at NAV 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 an extended
period, 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 (Not Applicable to Money Market Funds)
At the time of purchase, the share price of each class 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
In January, each Fund 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.
For Non-Money Market Funds
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, these Funds 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 reportable dividends, and possibly 31% of
certain redemptions. In addition, you may be subject to a fine by the Internal
Revenue Service. 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.
HOW TO SELL SHARES
You may redeem all or a portion of your shares on any day your Fund is open
for business, provided the amount requested is not on hold. When you purchase
by check or with Calvert Money Controller (electronic funds transfer), the
purchase will be on hold for up to 10 business days from the date of receipt.
During the hold period, any redemptions will be held until the Transfer Agent
is reasonably satisfied that the purchase payment has been collected. Drafts
written on CSIF Money Market during the hold period will be returned for
uncollected funds.
Your shares will be redeemed at the next NAV calculated after your redemption
request is received and accepted (less any applicable CDSC). The proceeds will
normally be sent to you on the next business day, but if making immediate
payment could adversely affect your Fund, it may take up to seven (7) days to
make payment. Calvert Money Controller redemptions generally will be credited
to your bank account on the second business day after your phone call. The
Funds have the right to redeem shares in assets other than cash for redemption
amounts exceeding, in any 90-day period, $250,000 or 1% of the net asset value
of the affected Fund, whichever is less. When the NYSE 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.
Follow these suggestions to ensure timely processing of your redemption
request:
By Telephone
You may redeem shares from your account by telephone and have your money
mailed to your address of record or electronically transferred or wired to a
bank you have previously authorized. A charge of $5 may be imposed on wire
transfers of less than $1,000.
Written Requests
Calvert Group, P.O. Box 419544, Kansas City, MO 64141-6544
Your letter should include your account number and fund and the number of
shares or the dollar amount you are redeeming. Please provide a daytime
telephone number, if possible, for us to call if we have questions. If the
money is being sent to a new bank, person, or address other than the address
of record, your letter must be signature guaranteed.
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. Drafts may not be ordered until your initial purchase has
cleared. Generally, there is no charge to you for this service, 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.
Systematic Check Redemptions
If you maintain an account with a balance of $10,000 or more, you may have up
to two (2) redemption checks for a fixed amount sent to you on the 15th of the
month, simply by sending a letter with all information, including your account
number, and the dollar amount ($100 minimum). If you would like a regular
check mailed to another person or place, your letter must be signature
guaranteed. Unless they otherwise qualify for a waiver, Class B or Class C
shares redeemed by Systematic Check Redemption will be subject to the
Contingent Deferred Sales Charge.
Corporations and Associations
Your letter of instruction and corporate resolution should be signed by
person(s) authorized to act on the account, accompanied by signature
guarantee(s).
Trusts
Your letter of instruction should be signed by the Trustee(s) (as Trustee(s)),
with a signature guarantee. (If the Trustee's name is not registered on your
account, please provide a copy of the trust document, certified within the
last 60 days.)
Through your Dealer
Your dealer must receive your request before the close of regular trading on
the NYSE to receive that day's NAV. Your dealer will be responsible for
furnishing all necessary documentation to Calvert Group and may charge you for
services provided.
FINANCIAL HIGHLIGHTS
The financial highlights table is intended to help you understand the Funds'
financial performance for the past 5 years (or if shorter, the period of the
Fund's operations). Certain information reflects financial results for a
single share, by Fund and Class. The total returns in the table represent the
rate that an investor would have earned (or lost) on an investment in a Fund
(assuming reinvestment of all dividends and distributions), and does not
reflect any applicable front- or back-end sales charge. This information has
been audited by PricewaterhouseCoopers, LLP whose report, along with a Fund's
financial statements, are included in the Fund's annual report, which is
available upon request.
[insert financial highlights info for past 5 fiscal years per Class, per
Portfolio]
EXHIBIT A
REDUCED SALES CHARGES (CLASS A ONLY)
You may qualify for a reduced sales charge through several purchase plans
available. You must notify the Fund at the time of purchase to take advantage
of the reduced sales charge.
Rights of Accumulation can be applied to several accounts
Class A sales charge breakpoints are automatically calculated for each account
based on the higher of cost or current value of shares previously purchased.
This privilege can be applied to a family group or other qualified group7 upon
request. Shares could then be purchased at the reduced sales charge which
applies to the entire group; that is, based on the higher of cost or current
value of shares previously purchased and currently held by all the members of
the group.
Letter of Intent
If you (or your group, as described above) plan to purchase $50,000 or more of
Calvert 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, instead of the higher 4.75% sales charge. 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.
Retirement Plans Under Section 457, Section 403(b)(7), or Section 401(k)
There is no sales charge on shares purchased for the benefit of a retirement
plan under section 457 of the Internal Revenue Code of 1986, as amended
("Code"), or for a plan qualifying under section 403(b) or 401(k) of the Code
if, at the time of purchase, (i) 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 (ii) 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 Calvert Distributors, Inc. ("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 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, 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 CSIF Balanced 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 NAV
Except for money market funds, if you make a purchase at NAV, you may exchange
that amount to another Calvert Group Fund at no additional sales charge.
Reinstatement Privilege
If you redeem shares and then within 30 days decide to reinvest in the same
Fund, you may do so at the net asset value next computed after the
reinvestment order is received, without a sales charge. You may use the
reinstatement privilege only once. The Funds reserve the right to modify or
eliminate this privilege.
EXHIBIT B
SERVICE FEES AND ARRANGEMENTS WITH DEALERS
Calvert Distributors, Inc., each Fund's underwriter, pays dealers a
commission, or reallowance (expressed as a percentage of the offering price
for Class A, and a percentage of amount invested for Class B and C) when you
purchase shares of non-money market funds. CDI also pays dealers an ongoing
service fee while you own shares of that Fund (expressed as an annual
percentage rate of average daily net assets held in Calvert accounts by that
dealer). The table below shows the amount of payment which differs depending
on the Class.
Maximum Commission/Service Fees
CSIF Money Market None/0.25%
Class A Class B Class C*
CSIF Balanced 4.00%/0.25% 4.00%/0.25% 1.00%/1.00%
CSIF Bond 3.00%/0.25% 3.00%/0.25% 1.00%/1.00%
CSIF Equity 4.00%/0.25% 4.00%/0.25% 1.00%/1.00%
CSIF Managed Index 4.00%/0.25% 4.00%/0.25% 1.00%/1.00%
CWVF International Equity 4.00%/0.25% 4.00%/0.25% 1.00%/1.00%
CWVF Capital Accumulation 4.00%/0.25% 4.00%/0.25% 1.00%/1.00%
TCF New Vision Small Cap 4.00%/0.25% 4.00%/0.25% 1.00%/1.00%
*Class C pays dealers a service fee of 0.25% and additional compensation of
0.75% for a total of 1.00%.
Occasionally, CDI may reallow to dealers the full Class A front-end sales
charge. 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. CAMCO, CDI, or their affiliates may pay certain
broker-dealers and/or other persons, for the sale and distribution of the
securities or for services to the Fund. Payments may include additional
compensation based on assets held through that firm beyond the regularly
scheduled rates, and finder's fees. All payments will be in compliance with
the rules of the National Association of Securities Dealers, Inc.
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 Accounts:
Shareholders 800-368-2745
Brokers 800-368-2746
TDD for Hearing-Impaired:
800-541-1524
Branch Office:
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
Registered, Certified or
Overnight Mail:
Calvert Group
c/o NFDS, 6th Floor
1004 Baltimore
Kansas City, MO 64105
Calvert Group Web-Site
Address: http://www.calvertgroup.com
PRINCIPAL UNDERWRITER
Calvert Distributors, Inc.
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
OUTSIDE BACK COVER PAGE (REQUIRED INFORMATION)
For investors who want more information about the Funds, the following
documents are available free upon request:
Annual/Semi-Annual Reports: Additional information about each Fund's
investments is available in the Fund's Annual and Semi-Annual reports to
shareholders. In each Fund's annual report, you will find a discussion of the
market conditions and investment strategies that significantly affected the
Fund's performance during its last fiscal year.
Statement of Additional Information (SAI): The SAI for each Fund provides
more detailed information about the Fund and is incorporated into this
prospectus by reference.
You can get free copies of reports and SAIs, request other information and
discuss your questions about the Funds by contacting your broker, or the Funds
at:
Calvert Group
4550 Montgomery Ave, Suite 1000N
Bethesda, Md. 20814
Telephone: 1-800-368-2745
Calvert Group Web-Site
Address: http://www.calvertgroup.com
You can review the Funds' reports and SAIs at the public Reference Room of the
Securities and Exchange Commission. You can get text only copies:
For a fee, by writing to or calling the Public Reference Room of the
Commission, Washington, D.C. 20549-6009, Telephone: 1-800-SEC-0330.
Free from the Commission's Internet website at http://www.sec.gov.
Investment Company Act file:no.811-_________(CSIF)
no.811- ________ (CWVF International Equity and
Capital Accumulation)
no.811- ________ (New Vision)
- --------
8CWVF may invest in companies that operate in countries with poor human rights
records if we believe the companies are making a positive contribution.
3 This is called "Rights of Accumulation." The sales charge is calculated by
taking into account not only the dollar amount of the new purchase of shares,
but also the higher of cost or current value of shares you have previously
purchased in Calvert Group Funds that impose sales charges. This automatically
applies to your account for each new purchase of Class A shares.
4 "Disability" means a total disability as evidenced by a determination by the
federal Social Security Administration.
5 The maximum amount subject to this waiver is based only upon the
shareholder's Calvert Group retirement accounts.
6 This systematic withdrawal plan requires a minimum account balance of
$50,000 to be established.
7 A "qualified group" is one which:
1. has been in existence for more than six months, and
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. A pension plan is not a qualified group for rights of accumulation.
<PAGE>
PROSPECTUS
January 31, 1999
Class I (Institutional) Shares
Calvert Social Investment Fund (CSIF) Balanced
CSIF Managed Index
CSIF Equity
CSIF Bond
Calvert Capital Accumulation
Calvert World Values International Equity
Calvert New Vision Small Cap
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.
TABLE OF CONTENTS
About the Funds:
Investment objective, strategy, past performance
Fees and Expenses
Principal Investment Practices and Risks
About Social Investing:
Socially Responsible Investment Criteria
Investment Selection Process
High Social Impact Investments
Special Equities
About Your Investment
Subadvisors and Portfolio Managers
Advisory Fees
How to Open an Account
Important - How Shares are Priced
When Your Account Will be Credited
Other Calvert Group Features (Exchanges, Minimum Account Balance, etc.)
Dividends, Capital Gains and Taxes
How to Sell Shares
Financial Highlights
CSIF Balanced
Advisor Calvert Asset Management Company, Inc.
Subadvisors: Brown Capital Management, Inc.
NCM Capital Management, Inc.
Objective
CSIF Balanced seeks to achieve a competitive total return through an actively
managed portfolio of stocks, bonds and money market instruments which offer
income and capital growth opportunity and which satisfy the investment and
social concern criteria.
Principal investment strategies --The Fund typically invests about 60% of its
assets in stocks and 40% in bonds or other fixed-income investments. Stock
investments are primarily common stock in large-cap companies, while the
fixed-income investments are primarily a wide variety of investment grade
bonds.
CSIF Balanced invests in a combination of stocks, bonds and money market
instruments in an attempt to provide a complete investment portfolio in a
single product. The Advisor rebalances the Fund quarterly to adjust for
changes in market value. The Fund is a large-cap, growth-oriented U.S.
domestic portfolio, although it may have other investments, including some
foreign securities. For the equity portion, the Fund seeks companies with
better than average expected growth rates at lower than average valuations.
The fixed-income portion reflects an active trading strategy, seeking total
return.
Equity investments are selected by the two Subadvisors, while the Advisor
manages the fixed-income assets and determines the overall mix for the Fund
depending upon its view of market conditions and economic outlook.
Principal risks-- You could lose money on your investment in the Fund, or the
Fund could underperform for any of the following reasons:
The stock or bond market goes down
The individual stocks and bonds in the Fund do not perform as well as expected
For the fixed-income portion of the Fund, the Advisor's forecast as to
interest rates is not correct
o The Advisor's allocation among different sectors of the stock and bond
markets does not perform as well as expected
An investment in the Fund is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency.
Bar Chart and Performance Table
The bar chart and table below show the Fund's annual returns and its long-term
performance. Because Class I shares were not offered prior to 1999, the chart
shows the performance of the Class A shares. Class I returns would have been
similar, except for its lower expenses. The table compares the Fund's
performance over time to that of the Standard & Poor's 500 Index and the
Lehman Aggregate Bond Index. It also shows the Fund's returns compared to the
Lipper Balanced Funds Index. The average total return table shows returns for
Class A shares with the maximum sales charge deducted. No sales charge has
been applied to the index and average used for comparison in the table.
Again, Class I returns would have been similar, except for lower expenses and
no sales charges. The Fund's past performance does not necessarily indicate
how the Fund will perform in the future.
BAR CHART
Calendar year (Class A return at NAV)
% return
1988 1989 1990 1991 1998
___% ___% ___% ___% ____%
Best Quarter: (of period shown ) QX '9X
Worst Quarter: (of period shown QX '9X
Average annual total returns
for the periods ended December 31, 1998
1 year 5 years 10 years
CSIF Balanced: Class A __% __% __%
S&P 500 Index Monthly
Reinvested __% __% __%
Lehman Aggregate
Bond Index TR __% __% __%
Lipper Balanced Funds __% __% __%
Index
1 From inception (4/1/98) ___%;
2 From inception (3/ /94) ____%
CSIF Managed Index
Advisor Calvert Asset Management Company, Inc.
Subadvisor: State Street Global Advisors
Objective
CSIF Managed Index seeks a total return after expenses which exceeds over time
the total return of the Russell 1000 Index. It seeks to obtain this objective
while maintaining risk characteristics similar to those of the Russell 1000
Index and through investments in stocks that meet the fund's investment and
social criteria. This objective may be changed by the Fund's Board of
Trustees/Directors without shareholder approval.
Principal investment strategies: The Fund invests in stocks that meet the
social criteria and creates a portfolio whose characteristics closely resemble
the characteristics of the Russell 1000 Index, while emphasizing the stocks
which it believes offer the greatest potential of return. CSIF Managed Index
follows an enhanced index management strategy. Instead of 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 Fund's performance, relative to the Index. The Fund may purchase
stocks not in the Russell 1000 Index, but at least 65% of the Fund's total
assets will be invested in stocks that are in the Index. Any investments not
in the Index will meet the Fund's social screening criteria and be selected to
closely mirror the Index's risk/return characteristics. The Subadvisor
rebalances the Fund quarterly to maintain its relative exposure to the Index.
Principal risks: You could lose money on your investment in the Fund, or the
Fund could underperform the stock market for any of the following reasons:
The stock market goes down
The individual stocks in the Fund or the index modeling portfolio do not
perform as well as expected
An index fund has operating expenses; a market index does not. The Fund-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
An investment in the Fund is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency. The Fund is not sponsored, sold, promoted or endorsed by
the Frank Russell Company.
CSIF Equity
Advisor Calvert Asset Management Company, Inc.
Subadvisors: Atlanta Capital Management Company, L.L.C.
Objective
CSIF Equity seeks growth of capital through investment in stocks of issuers in
industries believed to offer opportunities for potential capital appreciation
and which meet the Fund's investment and social criteria.
Principal investment strategies - The Fund invests primarily in the common
stocks of large-cap companies, having, on average, market capitalization of at
least $1 billion. Investment returns will be mostly from changes in the price
of the Fund's holdings (capital appreciation).
Principal risks: You could lose money on your investment in the Fund, or the
Fund could underperform for any of the following reasons:
The stock market goes down
The individual stocks in the Fund do not perform as well as expected
An investment in the Fund is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency.
Bar Chart and Performance Table
The bar chart and table below show the Fund's annual returns and its long-term
performance. Because Class I shares were not offered prior to 1999, the chart
shows the performance of the Class A shares. Class I returns would have been
similar, except for its lower expenses. The table compares the Fund's
performance over time to that of the Standard & Poor's 500 Index. It also
shows the Fund's returns compared to the Lipper Growth Funds Index. The
average total return table shows returns for Class A shares with the maximum
sales charge deducted. No sales charge has been applied to the index and
average used for comparison in the table. Again, Class I returns would have
been similar, except for lower expenses and no sales charges. The Fund's past
performance does not necessarily indicate how the Fund will perform in the
future.
BAR CHART
Calendar year (Class A return at NAV)
% return
1988 1989 1990 1991 1998
___% ___% ___% ___% ___%
Best Quarter: (of periods shown) QX '9X
Worst Quarter: (of periods shown) QX '9X
Average annual total returns
for the periods ended December 31, 1998
1 year 5 years 10 years
CSIF Equity: Class A __% __% __%
S&P 500 Index Monthly
Reinvested __% __% __%
Lipper Growth Funds __% __% __%
Index
1 From inception (4/1/98) ___%;
2 From inception (3/ /94) ____%
Calvert Capital Accumulation
Advisor Calvert Asset Management Company, Inc.
Subadvisor: Brown Capital Management, Inc.
Objective
CWVF Capital Accumulation seeks to provide long-term capital appreciation by
investing primarily in mid-cap stocks that meet the Fund's investment and
social criteria. This objective may be changed by the Fund's Board of
Trustees/Directors without shareholder approval.
Principal investment strategies -- investments are primarily in the common
stocks of mid-size companies. Returns in the Fund will be mostly from the
changes in the price of the Fund's holdings (capital appreciation.) The Fund
currently defines mid-cap companies as those within the range of market
capitalizations of the S & P's Mid-cap 400 Index. Stocks chosen for the Fund
combine growth and value characteristics or offer the opportunity to buy
growth at a reasonable price.
Principal risks: You could lose money on your investment in the Fund, or the
Fund could underperform for any of the following reasons:
The stock market goes down
The individual stocks in the Fund do not perform as well as expected
The Fund is non-diversified. Compared to other funds, the Fund may invest
more of its assets in a smaller number of companies. Gains or losses on a
single stock may have greater impact on the Fund.
An investment in the Fund is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency.
Bar Chart and Performance Table
The bar chart and table below show the Fund's annual returns and its long-term
performance. Because Class I shares were not offered prior to 1999, the chart
shows the performance of the Class A shares. Class I returns would have been
similar, except for its lower expenses. The table compares the Fund's
performance over time to that of the Standard & Poor's Mid-Cap 400 Index. It
also shows the Fund's returns compared to the Lipper Mid-Cap Funds Index. The
average total return table shows returns for Class A shares with the maximum
sales charge deducted. No sales charge has been applied to the index and
average used for comparison in the table. Again, Class I returns would have
been similar, except for lower expenses and no sales charges. The Fund's past
performance does not necessarily indicate how the Fund will perform in the
future.
BAR CHART
Calendar year (Class A return at NAV)
% return
1988 1989 1990 1991 1998
___% ___% ___% ___% ____%
Best Quarter: (of periods shown) QX '9X
Worst Quarter: (of periods shown) QX '9X
Average annual total returns
for the periods ended December 31, 1998
1 year 5 years 10 years
CWVF Capital Accum: Class A __% __% __%
S&P Mid-Cap 400 Index __% __% __%
Lipper Mid-Cap Funds Index __% __% __%
1 From inception (4/1/98) ___%;
2 From inception (3/ /94) ____%
Calvert World Values International Equity Fund
Advisor Calvert Asset Management Company, Inc.
Subadvisor: Murray Johnstone International, Ltd.
Objective
CWVF International Equity seeks to provide a high total return consistent with
reasonable risk by investing primarily in a globally diversified portfolio of
stocks that meet the Fund's investment and social criteria.
Principal investment strategies: The Fund identifies those countries with
markets and economies that it believes currently provide the most favorable
climate for investing. The Fund invests primarily in the common stocks of
mid- to large-cap companies using a value approach. The Fund invests primarily
in more developed economies and markets, with some investments in emerging
markets. No more than 5% of Fund assets are invested in the U.S. (excluding
High Social Impact and Special Equities investments).
Principal risks: You could lose money on your investment in the Fund, or the
Fund could underperform for any of the following reasons:
The stock markets (including those outside the U.S.) go down
The individual stocks in the Fund do not perform as well as expected
Foreign currency values go down versus the U.S. dollar
An investment in the Fund is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency.
Bar Chart and Performance Table
The bar chart and table below show the Fund's annual returns and its long-term
performance. Because Class I shares were not offered prior to 1999, the chart
shows how the performance of the Class A shares. Class I returns would have
been similar, except for its lower expenses. The table compares the Fund's
performance over time to that of the Morgan Stanley Capital International EAFE
Index. It also shows the Fund's returns compared to the Lipper International
Funds Index. The average total return table shows returns for Class A shares
with the maximum sales charge deducted. No sales charge has been applied to
the index and average used for comparison in the table. Again, Class I returns
would have been similar, except for lower expenses and no sales charges. The
Fund's past performance does not necessarily indicate how the Fund will
perform in the future.
BAR Chart
Calendar year (Class A return at NAV)
% return
1988 1989 1990 1991 1998
___% ___% ___% ___% ____%
Best Quarter: (of periods shown) QX '9X
Worst Quarter: (of periods shown) QX '9X
Average annual total returns
for the periods ended December 31, 1998
1 year 5 years 10 years
CWVF International Eq.: Class A __% __% __%
MSCI EAFE Index GD __% __% __%
Lipper International Funds Index __% __% __%
1 From inception (4/1/98) ___%;
2 From inception (3/ /94) ____%
Calvert New Vision Small Cap
Advisor Calvert Asset Management Company, Inc.
Subadvisor: Awad Asset Management Company
Objective
New Vision Small Cap seeks to provide long-term capital appreciation by
investing primarily in small-cap stocks that meets the Fund's investment and
social criteria. This objective may be changed by the Fund's Board of
Trustees/Directors without shareholder approval.
Principal Investment Strategies -- investments are primarily in the common
stocks of small-cap companies. Returns in the Fund will be mostly from the
changes in the price of the Fund's holdings (capital appreciation.) The Fund
currently defines small-cap companies as those with market capitalization of
$1 billion or less at the time the Fund initially invests.
Principal risks: You could lose money on your investment in the Fund, or the
Fund could underperform for any of the following reasons:
The stock market goes down
The individual stocks in the Fund do not perform as well as expected
Prices of small-cap stocks may respond to market activity differently than
larger more established companies
An investment in the Fund is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency.
Bar Chart and Performance Table
The bar chart and table below show the Fund's annual returns and its long-term
performance. Because Class I shares were not offered prior to 1999, the chart
shows the performance of the Class A shares. Class I returns would have been
similar, except for its lower expenses. The table compares the Fund's
performance over time to that of the Russell 2000 Index. It also shows the
Fund's returns compared to the Lipper Small-Cap Funds Index. The average
total return table shows returns for Class A shares with the maximum sales
charge deducted. No sales charge has been applied to the index and average
used for comparison in the table. Again, Class I returns would have been
similar, except for lower expenses and no sales charges. The Fund's past
performance does not necessarily indicate how the Fund will perform in the
future.
BAR CHART
Calendar year (Class A return at NAV)
% return
1988 1989 1990 1991 1998
___% ___% ___% ____% ___%
Best Quarter: (of periods shown) QX '9X
Worst Quarter: (of periods shown) QX '9X
Average annual total returns
for the periods ended December 31, 1998
1 year 5 years 10 years
New Vision Small Cap: Class A __% 1 NA
Russell 2000 Index TR __% __% __%
Lipper Small-Cap Funds
Index __% __% __%
1 From inception ( ) ___%;
2 From inception ( ) ____%
3 From inception ( ) ____%
CSIF Bond
Advisor: Calvert Asset Management Company, Inc.
Objective
CSIF Bond 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 meeting the Fund's investment and
social criteria.
Principal investment strategies: The Fund uses an active strategy, seeking
relative value to earn incremental income. The Fund typically invests at
least 65% of its assets in investment grade debt securities.
Principal risks You could lose money on your investment in the Fund, or the
Fund could underperform , most likely for any of the following reasons:
The bond market goes down
The individual bonds in the Fund do not perform as well as expected
The Advisor's forecast as to interest rates is not correct
o The Advisor's allocation among different sectors of the bond market does
not perform as well as expected
The Fund is non-diversified. Compared to other funds, the Fund may invest
more of its assets in a smaller number of companies. Gains or losses on a
single stock may have greater impact on the Fund.
An investment in the Fund is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency.
Bar Chart and Performance Table
The bar chart and table below show the Fund's annual returns and its long-term
performance. Because Class I shares were not offered prior to 1999, the chart
shows the performance of the Class A shares. Class I returns would have been
similar, except for its lower expenses. The table compares the Fund's
performance over time to that of the Lehman Aggregate Bond Index. It also
shows the Fund's returns compared to the Lipper Corporate Debt Funds A Rated
Index. The average total return table shows returns for Class A shares with
the maximum sales charge deducted. No sales charge has been applied to the
index and average used for comparison in the table. Again, Class I returns
would have been similar, except for lower expenses and no sales charges. The
Fund's past performance does not necessarily indicate how the Fund will
perform in the future.
BAR CHART
Calendar year (Class A return at NAV)
% return
1988 1989 1990 1991 1998
___% ___% ___% ___% ____%
Best Quarter: (of periods shown) QX '9X
Worst Quarter: (of periods shown) QX '9X
Average annual total returns
for the periods ended December 31, 1998
1 year 5 years 10 years
CSIF Bond: Class A __% __% __%
Lehman Aggregate
Bond Index TR __% __% __%
Lipper Corporate Debt
Funds A Rated Index __% __% __%
1 From inception (4/1/98) ____%
2 From inception ( 98) ____%
Fees and Expenses
This table describes the fees and expenses that you may pay if you buy and
hold shares of a Fund. Annual Fund operating expenses are deducted from
Fund assets.
CLASS I Bal Indx1 Eqty Cap Int'l NV Bd
Annual fund operating expenses
Management fees
Distribution and service (12b-1) fees
Other expenses
Total annual fund operating expenses
Explanation of Fees and Expenses Table
1 Expenses are based on estimates for the current fiscal year.
Annual Fund Operating Expenses are based on historical expenses. Management
fees include the Subadvisory fees paid by the Advisor ("CAMCO") to the
Subadvisors, and, if applicable, the administrative fee paid by the Fund to
Calvert Administrative Services Company, an affiliate of CAMCO. The
Management fees for CSIF Balanced include a performance adjustment which could
cause the fee to be as high as 0.85% or as low as 0.55% , depending on the
Fund's performance. The Management fees for Calvert Capital Accumulation
include a performance adjustment which could cause the fee to be as high as
0.85% or as low as 0.75%, depending on the Fund's performance.
For the fiscal year ended 9/30/98 CAMCO waived fees and or reimbursed
expenses for certain Funds. The net amount (after waiver/reimbursement) of
Annual Fund Operating Expenses actually paid by the Fund was: __%, __%, and
__% for Class A, Class B, and Class C. This waiver/reimbursement arrangement
[is expected to continue through (date) or/may be terminated at any time by
CAMCO.] (Include if applicable for other Funds)
Example
This example is intended to help you compare the cost of investing in a Fund
with the cost of investing in other mutual funds. The example assumes that:
You invest $10,000 in the Fund for the time periods indicated;
Your investment has a 5% return each year; and
The Fund's operating expenses remain the same.
Although your actual costs may be higher or lower, under these assumptions
your costs would be:
Number of Years Investment Class I
Is held
CSIF Balanced $___
1 $___
3 $___
5 $___
10 $___
CSIF Managed Index
1 $___
3 $___
5 $___
10 $___
CSIF Equity
1 $___
3 $___
5 $___
10 $___
CWVF Capital Accumulation
1 $___
3 $___
5 $___
10 $___
CWVF International Equity .
1 $___
3 $___
5 $___
10 $___
New Vision Small Cap
1 $___
3 $___
5 $___
10 $___
CSIF Bond
1 $___
3 $___
5 $___
10 $___
Principal Investment Practices and Risks
The most concise description of each Fund's risk profile is under the risk-
return summary for each Fund. The Funds are also permitted to invest
in certain other investments and to use certain investment techniques that
have higher risks associated with them. On the following pages are
brief descriptions of these other principal investments and techniques,
along with their risks.
For each of the investment practices listed, the table below shows each
Fund's limitations as a percentage of its assets and the principal types of
risk
involved. (See the pages following the table for a description of the types
of risks). Numbers in this table show maximum allowable amount only;
for actual usage, consult the Fund's annual/semi-annual reports.
@ Fund currently uses
0 Permitted, but not typically used (% of assets allowable, if restricted)
- -- Not permitted
xN Allowed up to x% of fund's net assets
xT Allowed up to x% of Fund's total assets
NA not applicable to this type of fund
Investment Practices
Mgd
Active Trading Strategy/Turnover involves Bal. Index Eqty Intl Cap NV Bd MM
selling a security soon after purchase. An @ 0 0 0 0 0 @ NA
active trading strategy causes a fund to have
higher portfolio turnover compared to other
funds and higher transaction costs, such as
commissions and custodian and settlement fees,
and may increase a Fund's tax liability.
Risks: Opportunity, Market and Transaction.
Temporary Defensive Positions.
During adverse market, economic or political 0 0 0 0 0 0 0 NA
conditions, the Fund may depart from its (35T) (35T)
principal investment strategies by increasing
its investment in U.S. government securities
and other short-term interest-bearing
securities. Risks: Opportunity.
Conventional Securities
Foreign Securities. Securities issued by 25N -- 25N @ 25N 15T1 25N NA
companies located outside the U.S. and/or
traded primarily on a foreign exchange.
Risks: Market, Currency, Transaction,
Liquidity, Information and Political.
Small Cap Stocks. Investing in small 0 NA 0 0 0 @ NA NA
companies involves greater risk than with more
established companies. Small cap stock prices
are more volatile and the companies often have
limited product lines, markets, financial
resources, and management experience. Risks:
Market, Liquidity and Information.
Investment grade bonds. Bonds rated BBB/Baa 0 NA 0 0 0 0 @ NA
or higher or comparable unrated bonds. Risks:
Interest Rate, Market and Credit.
Below-investment grade bonds. Bonds rated
below BBB/Baa or comparable unrated bonds are
considered junk bonds. They are subject to
greater credit risk than investment grade
bonds. Risks: Credit, Market, Interest Rate,
Liquidity and Information.
Below-investment grade bonds. Bonds rated 20N NA 20N3 10N3 5N3 5N3 20N3 NA
below BBB/Baa or comparable unrated bonds are
considered junk bonds. They are subject to
greater credit risk than investment grade
bonds. Risks: Credit, Market, Interest Rate,
Liquidity and Information.
Unrated debt securities. Bonds that have not @ NA 0 0 0 0 0 @2
been rated by a recognized rating agency; the
Advisor has determined the credit quality based
on its own research. Risks: Credit, Market,
Interest Rate, Liquidity and Information.
Illiquid securities. Securities which cannot 15N 15N 15N 15N 15N 15N 15N 15N
be readily sold because there is no active
market. Risks: Liquidity, Market and
Transaction.
Unleveraged derivative securities @ NA 0 0 0 0 @ @3
Asset-backed securities. Securities are backed
by unsecured debt, such as credit card debt.
These securities are often guaranteed or
over-collateralized to enhance their credit
quality. Risks: Credit, Interest Rate and
Liquidity.
Mortgage-backed securities. Securities are @ NA 0 0 0 0 @ @4
backed by pools of mortgages, including
passthrough certificates, and other senior
classes of collateralized mortgage obligations
(CMOs). Risks: Credit, Extension, Prepayment,
Liquidity and Interest Rate.
Participation interests. Securities 0 NA 0 0 0 0 @ @5
representing an interest in another security or
in bank loans. Risks: Credit, Interest Rate
and Liquidity.
Leveraged derivative instruments Currencyv 0 NA 0 5T 5T -- 0 NA
contracts. Contracts involving the right or
obligation to buy or sell a given amount of
foreign currency at a specified price and
future date. Risks: Currency, Leverage,
Correlation, Liquidity and Opportunity.
Options on securities and indices. Contracts 5T 5T 5T 5T 5T 5T 5T NA
giving the holder the right but not the
obligation to purchase or sell a security (or
the cash value, in the case of an option on an
index) at a specified price within a specified
time. In the case of selling (writing) options,
the Funds will write call options only if they
already own the security (if it is "covered").
Risks: Interest Rate, Currency, Market,
Leverage, Correlation, Liquidity, Credit and
Opportunity.
Futures contract. Agreement to buy or sell a 0 0 0 0 0 0 0
specific amount of a commodity or financial 5N 5N 5N 5N 5N 5N 5N NA
instrument at a particular price on a specific
future date. Risks: Interest Rate, Currency,
Market, Leverage, Correlation, Liquidity and
Opportunity.
Structured securities 0 NA NA NA 0 NA 0 NA
Indexed and/or leveraged mortgage-backed and
other debt securities, including principal-only
and interest-only securities, leveraged
floating rate securities, and others. These
securities tend to be highly sensitive to
interest rate movements and their performance
may not correlate to these movements in a
conventional fashion. Risks: Credit, Interest
Rate, Extension, Prepayment, Market, Leverage,
Liquidity and Correlation.
INSERT TABLE
The Funds have additional investment policies and restrictions that are not
principal to their investment strategies (for example, repurchase agreements,
real estate investment trusts, real estate investment trusts, borrowing,
pledging, and reverse repurchase agreements, securities lending, when-issued
securities, concentration and short sales.) These policies and restrictions
are discussed in the SAI.
Types of Investment Risk
Correlation risk
This occurs when a Fund "hedges"- uses one investment to offset the Fund's
position in another. If the two investments do not behave in relation to one
another the way Fund managers expect them to, then unexpected or undesired
results may occur. For example, a hedge may eliminate or reduce gains as well
as offset losses.
Credit risk
The risk that the issuer of a security or the counterparty to an investment
contract may default or become unable to pay its obligations when due.
Currency risk
Currency risk occurs when a Fund buys or sells a security denominated in
foreign currency. Foreign currencies "float" in value against the U.S.
dollar. Adverse changes in foreign currency values can cause investment
losses when a Fund's investments are converted to U.S. dollars.
Extension risk
The risk that an unexpected rise in interest rates will extend the life of a
mortgage-backed security beyond the expected prepayment time, typically
reducing the security's value.
Information risk
The risk that information about a security or issuer might not be available,
complete, accurate or comparable.
Interest rate risk
The risk that changes in interest rates will adversely affect the value of an
investor's securities. When interest rates rise, the value of fixed-income
securities will generally fall. Conversely, a drop in interest rates will
generally cause an increase in the value of fixed-income securities.
Longer-term securities and zero coupon/"stripped" coupon securities ("strips")
are subject to greater interest rate risk.
Leverage risk
The risk that occurs in some securities or techniques which tend to magnify
the effect of small changes in an index or a market. This can result in a
loss that exceeds the amount actually invested.
Liquidity risk
The risk that occurs when investments cannot be readily sold. A Fund may have
to accept a less-than-desirable price to complete the sale of an illiquid
security or may not be able to sell it at all.
Management risk
This risk exists in all mutual funds and means that a Fund's portfolio
management practices might not work to achieve their desired result.
Market risk
The risk that exists in all mutual funds and means the risk that securities
prices in a market, a sector or an industry will fluctuate, and that such
movements might reduce an investment's value.
Opportunity risk
The risk of missing out on an investment opportunity because the assets needed
to take advantage of it are committed to less advantageous investments or
strategies.
Political risk
The risk that may occur with foreign investments, and means that the value of
an investment may be adversely affected by nationalization, taxation, war,
government instability or other economic or political actions or factors.
Prepayment risk
The risk that anticipated prepayments may occur, reducing the value of a
mortgage-backed security.
Transaction risk
The risk that a Fund may be delayed or unable to settle a transaction or that
commissions and settlement expenses may be higher than usual.
INVESTMENT SELECTION PROCESS
Investments are selected on the basis of their ability to contribute to the
dual objectives of financial soundness and social criteria.
Potential investments for a Fund are first selected for financial soundness
and then evaluated according to that Fund's social criteria. To the greatest
extent possible, CSIF and CWVF seek to invest in companies that exhibit
positive accomplishments with respect to one or more of the social criteria.
Investments for all Funds must meet the minimum standards for all its
financial and social criteria.
Although each Fund's social criteria 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 investment by a Portfolio does not constitute endorsement
or validation by that Fund, nor does the exclusion of an investment
necessarily reflect failure to satisfy the Fund's social criteria. Investors
are invited to send a brief description of companies they believe might be
suitable for investment.
Socially Responsible Investment Criteria
The Funds invest in accordance with the 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. In
addition, we believe that there are long-term benefits in an investment
philosophy that demonstrates concern for the environment, labor relations,
human rights and community relations. Those enterprises that exhibit a social
awareness in these issues should be better prepared to meet future societal
needs. 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. These enterprises should be ready to respond to
external demands and ensure that over the longer term they will be viable to
seek to provide a positive return to both investors and society as a whole.
Each Fund has developed social investment criteria, detailed below. These
criteria represent standards of behavior which few, if any, organizations
totally satisfy. As a matter of practice, evaluation of a particular
organization in the context of these criteria will involve subjective judgment
by CAMCO and the Subadvisors. All social criteria may be changed by the Board
of Trustees/Directors without shareholder approval.
Calvert Social Investment Fund
CSIF seeks to invest in companies that:
Deliver safe products and services in ways that sustain our natural
environment. For example, CSIF looks for companies that produce energy from
renewable resources, while avoiding consistent polluters.
Manage 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.
Negotiate fairly with their workers, provide an environment supportive of
their wellness, do not discriminate on the basis of race, gender, religion,
age, disability, ethnic origin, or sexual orientation, do not consistently
violate regulations of the EEOC, and provide 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.
Foster 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 companies that the Advisor determines to be
significantly engaged in:
Production, or the manufacture of equipment, to produce nuclear energy
Business activities in support of repressive regimes
Manufacture of weapon systems
Manufacture of alcoholic beverages or tobacco products
Operation of gambling casinos
With respect to U.S. government securities, CSIF invests primarily in debt
obligations issued or guaranteed by agencies or instrumentalities of the U.S.
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 U.S. Government, such as Treasury
securities.
Calvert World Values International Equity Fund
The spirit of Calvert World Values International Equity Fund's social criteria
is similar to CSIF, 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 seeks to invest in companies that:
Achieve excellence in environmental management. We select investments that
take positive steps toward preserving and enhancing our natural environment
through their operations and products. We avoid companies with poor
environmental records.
Have positive labor practices. We consider the International Labor
Organization's basic conventions on worker rights as a guideline for our labor
criteria. 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. We avoid companies that demonstrate a pattern of engaging in
forced, compulsory, or child labor.
CWVF avoids investing in companies that:
Contribute to human rights abuses in other countries1
Produce nuclear power or nuclear weapons, or have more than 10% of
revenues derived from the production or sale of weapons systems
Derive more than 10% of revenues from the production of alcohol or tobacco
products, but 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
Calvert World Values Capital Accumulation Fund
Calvert New Vision Small Cap Fund
The Funds carefully review company policies and behavior regarding social
issues important to quality of life such as:
environment
employee relations
product criteria
weapons systems
nuclear energy
human rights
Both Funds will avoid investing in companies that have:
Significant or historical patterns of violating environmental regulations, or
otherwise have an egregious environmental record
Significant or historical patterns of discrimination against employees on the
basis of race, gender, religion, age, disability or sexual orientation, or
that have major labor-management disputes
Nuclear power plant operators and owners, or manufacturers of key
components in the nuclear power process
Significantly engaged in weapons production( including weapons systems
contractors and major nuclear weapons systems contractors)
Significantly involved in the manufacture of tobacco or alcohol products
Products or offer services that, under proper use, are considered harmful
The Advisor will seek to review companies' overseas operations consistent
with the social criteria stated above.
While Capital Accumulation and New Vision may invest in companies that exhibit
positive social characteristics, they make no explicit claims to seek out
companies with such practices.
High Social Impact Investments - CSIF Balanced, Bond and Equity, Calvert World
Values International Equity, Capital Accumulation and New Vision
High Social Impact Investments is a program that targets a percentage of the
Fund's assets (up to 1% for each of CSIF Balanced, CSIF Equity and
CSIF Bond and New Vision and up to 3% for each of CWVF International Equity
and CWVF Capital Accumulation) to directly support the growth of
community-based organizations for the purposes of promoting business creation,
housing development, and economic and social development of urban and rural
communities. These types of investments offer a rate of return below the
then-prevailing market rate, and are considered illiquid and unrated and
below-investment grade. They also involve a greater risk of default or price
decline than investment grade securities. However, they have a significant
social return by making a tremendous difference in our local communities.
The Funds have received an exemptive order to permit them to invest those
assets allocated for investment in high social impact investments through the
purchase of Community Investment Notes from the Calvert Social Investment
Foundation. The Calvert Social Investment Foundation is a non-profit
organization, legally distinct from Calvert Group, organized as a charitable
foundation for the purpose of increasing public awareness and knowledge
of the concept of socially responsible investing. It has instituted the
Calvert Community Investments program to raise assets from individual
investors and then invest these assets directly in non-profit or
not-for-profit community development organizations that focus on low income
housing, economic development and business development in urban and rural
communities.
Special Equities - CSIF Balanced and Calvert World Values International
Equity
CSIF Balanced and CWVF International Equity each have a Special Equities
investment program that allows the Fund to promote especially promising
approaches to social goals through privately placed investments. The
investments are generally venture capital investments in small, untried
enterprises. The Special Equities Committee of each Fund identifies,
evaluates, and selects the Special Equities investments. Special Equities
involve a high degree of risk-- they are subject to liquidity, information,
and if a debt investment, credit risk. Special Equities are valued under the
direction and control of the Fund's Board.
About Calvert Group
Calvert Asset Management Company, Inc.(4550 Montgomery Avenue, Suite 1000N,
Bethesda, MD 20814) ("CAMCO") is the Funds' investment advisor and provides
day-to-day investment management services to the Funds. It has been managing
mutual funds since 1976. CAMCO is the investment advisor for over 25 mutual
funds, including the first and largest family of socially screened funds. As
of December 31, 1998, CAMCO had over $____ billion in assets under management.
CAMCO uses a team approach to its management of CSIF Bond (since February
1997) and the fixed-income assets of CSIF Balanced Portfolio (June 1995).
Reno J. Martini, Senior Vice President and Chief Investment Officer, heads
this team and oversees the management of all Calvert Funds for CAMCO. Mr.
Martini has over 18 years of experience in the investment industry and has
been the head of CAMCO's asset management team since 1985.
Subadvisors and Portfolio Managers
Brown Capital Management, Inc., 809 Cathedral Street, Baltimore, Maryland, has
managed part of the equity investments of CSIF Balanced since 1996, and
Capital Accumulation since 1994. In 1997, Brown Capital became the sole
Subadvisor for Capital Accumulation. The firm has over $3.6 billion in assets
under management. It uses a bottom-up approach that incorporates
growth-adjusted price earnings, concentrating on mid-/large-cap growth stocks.
Eddie C. Brown, founder and President of Brown Capital Management, Inc., heads
the portfolio management team for Capital Accumulation and Brown Capital's
portion of CSIF Balanced. He brings over 24 years of management experience to
the Funds, and has held positions with T. Rowe Price Associates and Irwing
Management Company. Mr. Brown is a frequent panelist on "Wall Street Week
with Louis Rukeyser" and is a member of the Wall Street Week Hall of Fame.
NCM Capital Management Group, Inc., 103 West Main Street, Durham, NC 27701,
has managed part of the equity investments of CSIF Balanced since 1995. The
firm has over $__ billion in assets under management. 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. Mr. Sloan has more than __ years of experience in the investment
industry, and is a frequent panelist on Wall Street Week with Louis Rukeyser.
STATE STREET GLOBAL ADVISORS (SSgA); 225 Franklin St., Boston, MA, was
established in 1978 as an investment management division of the State Street
Bank and Trust Company. SSgA is a pioneer in the development of domestic and
international index funds, and has managed CSIF Managed Index since its
inception. The firm currently manages over $400 billion in assets, including
$120 billion in index and enhanced index products.
SSgA's portfolio management team consists of several members, headed by Arlene
Rockefeller. She joined SSgA in 1982, with 10 years experience in investment
computer systems. Ms. Rockefeller is currently Principal and Unit Head of
Global Enhanced Equities. She manages a variety of SSgA's equity and tax-free
funds.
ATLANTA CAPITAL MANAGEMENT COMPANY, LLCLA; Two Midtown Plaza, Suite 1600, 1360
Peachtree Street, Atlanta, GA 30309 has managed CSIF Equity since September
1998. The firm has $2.8 billion under management.
Daniel W. Boone, III, C.F.A. heads the Atlanta portfolio management team for
CSIF Equity. He is a senior Partner and senior investment professional for
Atlanta Capital. He has been with the firm since 1976. He specializes in
equity portfolio management and research. Before joining the firm, he held
positions with the international firm of Lazard, Freres in New York, and
Wellington Management Company. Mr. Boone has earned a MBA from the Wharton
School of University of Pennsylvania, where he graduated with distinction, and
a B.A. from Davidson College.
MURRAY JOHNSTONE INTERNATIONAL, LTD, 875 North Michigan Ave., Suite 3415,
Chicago, IL 60611. The firm has __________ in assets, and has managed
Calvert World Values International Equity Fund since its inception.
Andrew Preston heads the portfolio management team for International Equity.
He joined Murray Johnstone International in 1985, and has held positions as
investment analyst in the United Kingdom and U.S. Department, and Fund Manager
in the Japanese Department. He was appointed director of the company in
1993. Prior to joining Murray Johnstone, he was a member of the Australian
Foreign Service and attended University in Australia and Japan.
AWAD Asset Management Company (AWAD); 250 Park Avenue, New York, NY 10177, a
subsidiary of Raymond James & Associates, has managed the New Vision Small Cap
Fund since 1997. The firm has over $800 million in assets under management
and specializes in the management of small-capitalization growth stocks. They
emphasize a growth-at-a-reasonable-price investment philosophy.
James Awad, President of Awad, founded the firm in 1992. He heads the
portfolio management team for New Vision Small Cap. Mr. Awad has more than 30
years experience in the investment business, holding positions with firms such
as Neuberger & Berman and First Investors Corporation.
Each of the Funds has obtained an exemptive order from the Securities and
Exchange Commission to permit the Fund, pursuant to approval by the Board of
Trustees/Directors, to enter into and materially amend contracts with the
Fund's Subadvisor without shareholder approval. See "Investment Advisor and
Subadvisor" in the SAI for further details.
Advisory Fees
The following table shows the aggregate annual advisory fee paid to CAMCO
by each Fund for the most recent fiscal year as a percentage of that Fund's
average daily net assets .
Fund Advisory Fee 1
CSIF Balanced 0.--% 2
CSIF Managed Index 0.60% 3, 4
CSIF Equity 0.--% 2
CSIF Bond 0.--% 2
CSIF Money Market 0.--%
CWVF International Equity -.--% 2
CWVF Capital Accumulation 0.--% 2
TCF New Vision Small Cap 0.--% 2
1 CAMCO waived part of its advisory fee for the following Funds; the full
contractual rate each Fund is obligated to pay CAMCO is: CSIF Bond, 0.65%
(list others if applicable.)
2 These advisory agreements were changed by a vote of shareholders in
_________ 1999. The new advisory fee will be: CSIF, Balanced, 0.375%; CSIF
Equity, 0.45%; CSIF Bond, 0.30%; CWVF International Equity, 0.70%; CWVF
Capital Accumulation, 0.60%; and TCF New Vision Small Cap, 0.70%.
3 CSIF Managed Index has not had a full year of operations. Its advisory
agreement provides for a fee of 0.60% of the Portfolio's first $500 million of
average daily net assets and 0.55% of any such assets over $500 million.
4 CSIF Managed Index has a recapture provision which allows CAMCO to recapture
from the Fund in a later year any fees CAMCO waives or expenses it assumes,
subject to certain limitations.
CSIF Balanced has a performance adjustment which could cause the fee to be as
high as 0.85% or low as 0.55%, depending on its performance relative to the
relevant index (CAMCO: Lehman Aggregate Bond; NCM: Russell 3000, Brown: S&P
500). CWVF Capital Accumulation has a performance adjustment which could
cause the fee to be as high as 0.85% or as low as 0.75%, depending on its
performance relative to the S&P 400 Midcap Index.
A Word About the Year 2000 (Y2K) and Our Computer Systems
Like other mutual funds, CAMCO and its service providers use computer systems
for all aspects of our business -- processing shareholder and fund
transactions, fund accounting, executing trades, and pricing securities just
to name a few. Many current software programs cannot distinguish between the
year 2000 and the year 1900. This can cause problems with retirement plan
distributions, dividend payment software, transaction software, and numerous
other areas that could impact the Funds. Calvert Group has been reviewing all
of its computer systems for Y2K compliance. Although, at this time, there can
be no assurance that there will be no negative impact on the Funds, the
Advisor, the underwriter, transfer agent and custodian have advised the Funds
that they have been actively working on any necessary changes to their
computer systems to prepare for Y2K and expect that their systems, and those
of their outside service providers, will be adapted in time for that event.
For more information, please visit our website at www.calvertgroup.com.
CAMCO, and its affiliates may pay certain broker-dealers and/or other persons,
for the sale and distribution of the securities or for services to the Fund.
Payments may include additional compensation based on assets held through that
firm beyond the regularly scheduled rates, and finder's fees. All payments
will be in compliance with the rules of the National Association of Securities
Dealers, Inc.
HOW TO OPEN AN ACCOUNT
Complete and sign an application for each new account. Be sure to specify
Class I. For more information, contact
Minimum To Open an Account $1,000,000 Minimum additional investments -
Wire Funds to:
Important - How Shares are Priced
The price of shares is based on each Fund's net asset value ("NAV"). NAV is
computed by adding the value of a Fund's holdings plus other assets,
subtracting liabilities, and then dividing the result by the number of shares
outstanding. If a Fund has more than one class of shares, the NAV of each
class will be different, 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.
CSIF Money Market is valued according to the "amortized cost" method, which is
intended to stabilize the NAV at $1 per share. If market quotations are not
readily available, securities are valued by a method that the 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
("NYSE") (normally 4 p.m. ET). Each Fund is open for business each day the
NYSE is open.
Some Funds hold securities that are primarily listed on foreign exchanges that
trade on days when the NYSE is closed. These Funds do not price shares on days
when the NYSE is closed, even if foreign markets may be open. As a result, the
value of the Fund's shares may change on days when you will not be able to buy
or sell your shares.
When Your Account Will Be Credited
Your purchase will be processed at the next NAV calculated after your order is
received and accepted. All of your purchases must be made in US dollars and
checks must be drawn on US banks. No cash will be accepted. Each Fund reserves
the right to suspend the offering of shares for a period of time or to reject
any specific purchase order. As a convenience, check purchases received at
Calvert's office in Bethesda, Maryland will be sent by overnight delivery to
the Transfer Agent and will be credited the next business day upon receipt.
Any check purchase received without an investment slip may cause delayed
crediting. If your check does not clear your bank, your purchase will be
canceled and you will be charged a $10 fee plus any costs incurred. Check or
electronic funds transfer purchases will be on hold for up to 10 business
days. All purchases will be confirmed and credited to your account in full and
fractional shares (rounded to the nearest 1/1000th of a share).
OTHER CALVERT GROUP FEATURES
CALVERT INFORMATION NETWORK
For 24 hour performance and account information call 800-368-2745 or visit
http://www.calvertgroup.com
You can obtain current performance and pricing information, verify account
balances, and authorize certain transactions with the convenience of one phone
call, 24 hours a day.
ACCOUNT SERVICES
By signing up for services when you open your account, you avoid having to
obtain a signature guarantee. If you wish to add services at a later date, a
signature guarantee to verify your signature may be obtained from any bank,
trust company and savings and loan association, credit union, broker-dealer
firm or member of a domestic stock exchange. A notary public cannot provide a
signature guarantee.
CALVERT MONEY CONTROLLER
Calvert Money Controller allows you to purchase or sell shares by electronic
funds transfer without the time delay of mailing a check or the added expense
of a wire. Use this service to transfer up to $300,000 electronically. Allow
one or two business days after you place your request for the transfer to take
place. Money transferred to purchase new shares will be subject to a hold of
up to 10 business days before redemption requests will be honored. Transaction
requests must be received by 4 p.m. ET. You may request this service on your
initial account application.
TELEPHONE TRANSACTIONS
You may purchase, redeem, or exchange shares, wire funds and use Calvert Money
Controller by telephone if you have pre-authorized service instructions. You
receive telephone privileges automatically when you open your account unless
you elect otherwise. For our mutual protection, the Fund, the shareholder
servicing agent and their affiliates use precautions such as verifying
shareholder identity and recording telephone calls to confirm instructions
given by phone. A confirmation statement is sent for most transactions; please
review this statement and verify the accuracy of your transaction immediately.
EXCHANGES
Calvert Group offers a wide variety of investment options that includes common
stock funds, tax-exempt and corporate bond funds, and money market funds (call
your broker or Calvert representative for more information). We make it easy
for you to purchase shares in other Calvert funds if your investment goals
change. The exchange privilege offers flexibility by allowing you to exchange
shares on which you have already paid a sales charge from one mutual fund to
another at no additional charge.
Complete and sign an account application, 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.
Before you make an exchange, please note the following:
Each exchange represents the sale of shares of one Fund and the purchase of
shares of another. Therefore, you could realize a taxable gain or loss.
You may exchange shares acquired by reinvestment of dividends or distributions
into another Calvert Fund at no additional charge.
Shares may only be exchanged for shares of the same class of another Calvert
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 Fund during any six-month
period will be given written notice and may be prohibited from placing
additional investments. This policy does not prohibit a shareholder from
redeeming shares of any Fund, and does not apply to trades solely between
money market funds.
Each Fund reserves the right to terminate or modify the exchange privilege
with 60 days' written notice.
COMBINED GENERAL MAILINGS (Householding)
Multiple accounts with the same social security number will receive one
mailing per household of information such as prospectuses and semi-annual and
annual reports. You may request further grouping of accounts to receive fewer
mailings. Separate statements will be generated for each separate account and
will be mailed in one envelope for each combination above.
SPECIAL SERVICES AND CHARGES
Each Fund pays for shareholder services but not for special services that are
required by a few shareholders, such as a request for a historical transcript
of an account or a stop payment on a draft. You may be required to pay a fee
for these special services; for example, the fee for stop payments is $25.
If you are purchasing shares through a program of services offered by a
broker/dealer or financial institution, you should read the program materials
together with this Prospectus. Certain features may be modified in these
programs, and the broker/dealer or financial institution may impose charges
for their services.
MINIMUM ACCOUNT BALANCE
Please maintain a balance in each of your Fund accounts of at least $1,000,000
per Portfolio. If the balance in your account falls below the minimum during
a month, a fee of $____ may be charged to your account. If due to
redemptions, the account falls below the minimum, your account 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 will be closed after 30 days if the
balance is not brought up to the required minimum amount.
DIVIDENDS, CAPITAL GAINS AND TAXES
Each Fund pays dividends from its net investment income as shown below. 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.
CSIF Money Market Accrued daily, paid monthly
CSIF Bond Paid monthly
CSIF Balanced Paid quarterly
CSIF Equity Paid annually
CSIF Managed Index Paid annually
CWVF International Equity Paid annually
CWVF Capital Accumulation Paid annually
TCF New Vision Small Cap Paid annually
Dividend payment options
Dividends and any distributions are automatically reinvested in the same Fund
at NAV (without sales charge), unless you elect to have amounts of $10 or more
paid in cash (by check or by Calvert Money Controller). Dividends and
distributions from any Calvert Group Fund may be automatically invested in an
identically registered account in any other Calvert Group Fund at NAV. If
reinvested in the same account, new shares will be purchased at NAV 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 an extended
period, 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 (Not Applicable to Money Market Funds)
At the time of purchase, the share price of each class 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
In January, each Fund 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.
For Non-Money Market Funds
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, these Funds 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 reportable dividends, and possibly 31% of
certain redemptions. In addition, you may be subject to a fine by the Internal
Revenue Service. 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.
HOW TO SELL SHARES
You may redeem all or a portion of your shares on any day your Fund is open
for business. Your shares will be redeemed at the next NAV calculated after
your redemption request is received and accepted. (The proceeds will normally
be sent to you on the next business day, but if making immediate payment could
adversely affect your Fund, it may take up to seven (7) days to make payment..
The Funds have the right to redeem shares in assets other than cash for
redemption amounts exceeding, in any 90-day period, $250,000 or 1% of the net
asset value of the affected Fund, whichever is less. When the NYSE 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.
Follow these suggestions to ensure timely processing of your redemption
request:
By Telephone
You may redeem shares from your account by telephone and have your money
mailed to your address of record or electronically transferred or wired to a
bank you have previously authorized.
Written Requests
Calvert Group, P.O. Box 419544, Kansas City, MO 64141-6544
Your letter should include your account number and fund and the number of
shares or the dollar amount you are redeeming. Please provide a daytime
telephone number, if possible, for us to call if we have questions. If the
money is being sent to a new bank, person, or address other than the address
of record, your letter must be signature guaranteed.
Corporations and Associations
Your letter of instruction and corporate resolution should be signed by
person(s) authorized to act on the account, accompanied by signature
guarantee(s).
Trusts
Your letter of instruction should be signed by the Trustee(s) (as Trustee(s)),
with a signature guarantee. (If the Trustee's name is not registered on your
account, please provide a copy of the trust document, certified within the
last 60 days.)
FINANCIAL HIGHLIGHTS
The financial highlights table is intended to help you understand the Funds'
financial performance for the past 5 years (or if shorter, the period of the
Fund's operations). Certain information reflects financial results for a
single share, by Fund and Class. The total returns in the table represent the
rate that an investor would have earned (or lost) on an investment in a Fund
(assuming reinvestment of all dividends and distributions), and does not
reflect any applicable front- or back-end sales charge. This information has
been audited by PricewaterhouseCoopers, LLP whose report, along with a Fund's
financial statements, are included in the Fund's annual report, which is
available upon request.
[insert financial highlights info for CSIF Managed Index Class I.]
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 Accounts:
Shareholders 800-368-2745
Brokers 800-368-2746
TDD for Hearing-Impaired:
800-541-1524
Branch Office:
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
Registered, Certified or
Overnight Mail:
Calvert Group
c/o NFDS, 6th Floor
1004 Baltimore
Kansas City, MO 64105
Calvert Group Web-Site
Address: http://www.calvertgroup.com
PRINCIPAL UNDERWRITER
Calvert Distributors, Inc.
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
OUTSIDE BACK COVER PAGE (REQUIRED INFORMATION)
For investors who want more information about the Funds, the following
documents are available free upon request:
Annual/Semi-Annual Reports: Additional information about each Fund's
investments is available in the Fund's Annual and Semi-Annual reports to
shareholders. In each Fund's annual report, you will find a discussion of the
market conditions and investment strategies that significantly affected the
Fund's performance during its last fiscal year.
Statement of Additional Information (SAI): The SAI for each Fund provides
more detailed information about the Fund and is incorporated into this
prospectus by reference.
You can get free copies of reports and SAIs, request other information and
discuss your questions about the Funds by contacting your broker, or the Funds
at:
Calvert Group
4550 Montgomery Ave, Suite 1000N
Bethesda, Md. 20814
Telephone: 1-800-368-2745
Calvert Group Web-Site
Address: http://www.calvertgroup.com
You can review the Funds' reports and SAIs at the public Reference Room of the
Securities and Exchange Commission. You can get text only copies:
For a fee, by writing to or calling the Public Reference Room of the
Commission, Washington, D.C. 20549-6009, Telephone: 1-800-SEC-0330.
Free from the Commission's Internet website at http://www.sec.gov.
Investment Company Act file: no.811-________ (CSIF)
no.811- ________ (CWVF International Equity and
Capital Accumulation)
no.811- ________ (New Vision)
- --------
8CWVF may invest in companies that operate in countries with poor human rights
records if we believe the companies are making a positive contribution.
<PAGE>
CALVERT SOCIAL INVESTMENT FUND
(Balanced, Bond, Equity, Money Market and Managed Index Portfolios)
4550 Montgomery Avenue, Bethesda, Maryland 20814
Statement of Additional Information
January 31, 1999
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 January 31, 1999. The Fund's audited
financial statements included in its most recent Annual Report to
Shareholders, are expressly incorporated by reference, and made a part of this
SAI. The prospectus and the most recent shareholder report may be obtained
free of charge by writing the Fund at the above address or calling the Fund.
TABLE OF CONTENTS
Investment Policies and Risks 2
Investment Restrictions 7
Investment Selection Process 10
Dividends, Distributions and Taxes 11
Net Asset Value 11
Calculation of Yield and Total Return 13
Purchase and Redemption of Shares 15
Advertising 16
Trustees, Officers and Advisory Council 17
Investment Advisor 19
Method of Distribution 22
Transfer and Shareholder Servicing Agents 24
Portfolio Transactions 24
Independent Accountants and Custodians 25
Control Persons and Principal Holders of Securities 25
General Information 27
Appendix 27
INVESTMENT POLICIES AND RISKS
Foreign Securities (not applicable to managed index or money market)
Investments in foreign securities may present risks not typically
involved in domestic investments. The Fund 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. By investing in ADRs rather than directly in foreign
issuers' stock, the Fund may possibly 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.
Additional costs may be incurred in connection with international
investment since foreign brokerage commissions and the custodial costs
associated with maintaining foreign portfolio securities are generally higher
than in the United States. Fee expense may also be incurred on currency
exchanges when the Fund changes investments from one country to another or
converts foreign securities holdings into U.S. dollars.
United States Government policies have at times, in the past, through
imposition of interest equalization taxes and other restrictions, discouraged
certain investments abroad by United States investors. 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 or Subadvisor 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.
Eurocurrency Conversion Risk. European countries that are members of the
European Monetary Union have agreed to use a common currency unit, the "euro,"
beginning in 1999. Currently, each of these countries has its own currency
unit. Although the Advisor and Subadvisors do not anticipate any problems in
conversion from the old currencies to the euro, there may be issues involved
in settlement, valuation, and numerous other areas that could impact the
Fund. Calvert has been reviewing all of its computer systems for Eurocurrency
conversion compliance. There can be no assurance that there will be no
negative impact on the Fund, however, the Advisor, Subadvisor and custodian
have advised the Fund that they have been actively working on any necessary
changes to their computer systems to prepare for the conversion, and expect
that their systems, and those of their outside service providers, will be
adapted in time for that event.
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.
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.
TRACKING THE INDEX- MANAGED INDEX PORTFOLIO
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 vary 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 those 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.
TEMPORARY DEFENSIVE POSITIONS
For temporary defensive purposes - which may include a lack of adequate
purchase candidates or an unfavorable market environment - the Fund may invest
in cash or cash equivalents. Cash equivalents include instruments such as, but
not limited to, U.S. government and agency obligations, certificates of
deposit, banker's acceptances, time deposits commercial paper, short-term
corporate debt securities, and repurchase agreements.
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 Fund bears the risk that the market value of the
securities it sold may decline below the agreed-upon repurchase price, in
which case the dealer may request the Fund to post additional collateral.
Non-Investment Grade Debt Securities
Non-investment grade debt securities are lower quality debt
securities (generally those rated BB or lower by S&P or Ba or lower by
Moody's, known as "junk bonds. 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 non-investment grade debt 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.
INDUSTRY CONCENTRATION (BOND ONLY)
Funds that may concentrate (invest 25% or more of their assets) in
one or more industries are more susceptible to market changes in that industry
sector. For example, a downturn in the technology sector will have a bigger
impact on a Fund that chose to concentrate in the technology industry then on
a Fund that did not concentrate.
DERIVATIVES
The Fund 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 Fund can use
these practices either as substitution or as protection against an adverse
move in the Fund to adjust the risk and return characteristics of the Fund. If
the Advisor and/or Subadvisor judges market conditions incorrectly or employs
a strategy that does not correlate well with a Fund'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 Fund
and may involve a small investment of cash relative to the magnitude of the
risk assumed. Derivatives are often illiquid.
Options and Futures Contracts (NOT APPLICABLE TO MONEY MARKET)
The Portfolio 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 (or for Managed Index, for
liquidity or to hedge cash exposure). 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.
These Portfolios may write "covered options" on securities in
standard contracts traded on national securities exchanges. These Portfolios
may write such options in order to receive the premiums from options that
expire and to seek net gains from closing purchase transactions with respect
to such options.
Put and Call Options. These Portfolios may purchase put and call options, in
standard contracts traded on national securities exchanges, on securities of
issuers which meet the Fund's social criteria. These Portfolios will purchase
such options only to hedge against changes in the value of securities the
Portfolios hold and not for the purposes of speculation or leverage. By buying
a put, a Portfolio has the right to sell the security at the exercise price,
thus limiting its risk of loss through a decline in the market value of the
security until the put expires. The amount of any appreciation in the value of
the underlying security will be partially offset by the amount of the premium
paid for the put option and any related transaction costs. Prior to its
expiration, a put option may be sold in a closing sale transaction and any
profit or loss from the sale will depend on whether the amount received is
more or less than the premium paid for the put option plus the related
transaction costs.
These Portfolios may purchase call options on securities which they
may intend to purchase and which meet the Fund's social criteria. Such
transactions may be entered into in order to limit the risk of a substantial
increase in the market price of the security which the Portfolio intends to
purchase. Prior to its expiration, a call option may be sold in a closing sale
transaction. Any profit or loss from such a sale will depend on whether the
amount received is more or less than the premium paid for the call option plus
the related transaction costs.
Covered Options. These Portfolios may write only covered options on equity and
debt securities in standard contracts traded on national securities exchanges.
This means that, in the case of call options, so long as a Portfolio is
obligated as the writer of a call option, that Portfolio will own the
underlying security subject to the option and, in the case of put options,
that Portfolio will, through its custodian, deposit and maintain either cash
or securities with a market value equal to or greater than the exercise price
of the option.
When a Portfolio writes a covered call option, the Portfolio gives
the purchaser the right to purchase the security at the call option price at
any time during the life of the option. As the writer of the option, the
Portfolio receives a premium, less a commission, and in exchange foregoes the
opportunity to profit from any increase in the market value of the security
exceeding the call option price. The premium serves to mitigate the effect of
any depreciation in the market value of the security. Writing covered call
options can increase the income of the Portfolio and thus reduce declines in
the net asset value per share of the Portfolio if securities covered by such
options decline in value. Exercise of a call option by the purchaser however
will cause the Portfolio to forego future appreciation of the securities
covered by the option.
When a Portfolio writes a covered put option, it will gain a profit
in the amount of the premium, less a commission, so long as the price of the
underlying security remains above the exercise price. However, the Portfolio
remains obligated to purchase the underlying security from the buyer of the
put option (usually in the event the price of the security falls below the
exercise price) at any time during the option period. If the price of the
underlying security falls below the exercise price, the Portfolio may realize
a loss in the amount of the difference between the exercise price and the sale
price of the security, less the premium received.
These Portfolios may purchase securities which may be covered with
call options solely on the basis of considerations consistent with the
investment objectives and policies of the Fund and the affected Portfolio. The
Portfolio's turnover may increase through the exercise of a call option; this
will generally occur if the market value of a "covered" security increases and
the portfolio has not entered into a closing purchase transaction.
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. Futures contracts
trade on contracts markets in a manner that is similar to the way a stock
trades on a stock exchange and the boards of trade, through their clearing
corporations, guarantee performance of the contracts.
Options on Futures Contracts. These Portfolios may purchase and write put or
call options and sell call options on futures contracts in which a Portfolio
could otherwise invest and which are traded on a U.S. exchange or board of
trade. The Portfolios may also enter into closing transactions with respect to
such options to terminate an existing position; that is, to sell a put option
already owned and to buy a call option to close a position where the Portfolio
has already sold a corresponding call option.
The Portfolios may only invest in options on futures contracts to
hedge their respective existing investment positions and not for income
enhancement, speculation or leverage purposes. Although some of the securities
underlying the futures contract underlying the option may not necessarily meet
the Fund's social criteria, any such hedge position taken by these Portfolios
will not constitute a direct ownership interest in the underlying securities.
An option on a futures contract gives the purchaser the right, in
return for the premium paid, to assume a position in a futures contract-a long
position if the option is a call and a short position if the option is a
put-at a specified exercise price at any time during the period of the option.
The Portfolios will pay a premium for such options purchased or sold. In
connection with such options bought or sold, the Portfolios will make initial
margin deposits and make or receive maintenance margin payments which reflect
changes in the market value of such options. This arrangement is similar to
the margin arrangements applicable to futures contracts described above.
Put Options on Futures Contracts. The purchase of put options on futures
contracts is analogous to the sale of futures contracts and is used to protect
the portfolio against the risk of declining prices. These Portfolios may
purchase put options and sell put options on futures contracts that are
already owned by that Portfolio. The Portfolios will only engage in the
purchase of put options and the sale of covered put options on market index
futures for hedging purposes.
Call Options on Futures Contracts. The sale of call options on futures
contracts is analogous to the sale of futures contracts and is used to protect
the portfolio against the risk of declining prices. The purchase of call
options on futures contracts is analogous to the purchase of a futures
contract. These Portfolios may only buy call options to close an existing
position where the Portfolio has already sold a corresponding call option, or
for a cash hedge. The Portfolios will only engage in the sale of call options
and the purchase of call options to cover for hedging purposes.
Writing Call Options on Futures Contracts. The writing of call options on
futures contracts constitutes a partial hedge against declining prices of the
securities deliverable upon exercise of the futures contract. If the futures
contract price at expiration is below the exercise price, the Portfolio will
retain the full amount of the option premium which provides a partial hedge
against any decline that may have occurred in the Portfolio's securities
holdings.
Risks of Options and Futures Contracts. If one of these Portfolios has sold
futures or takes options positions to hedge its portfolio against decline in
the market and the market later advances, the Portfolio may suffer a loss on
the futures contracts or options which it would not have experienced if it had
not hedged. Correlation is also imperfect between movements in the prices of
futures contracts and movements in prices of the securities which are the
subject of the hedge. Thus the price of the futures contract or option may
move more than or less than the price of the securities being hedged. Where a
Portfolio has sold futures or taken options positions to hedge against decline
in the market, the market may advance and the value of the securities held in
the Portfolio may decline. If this were to occur, the Portfolio might lose
money on the futures contracts or options and also experience a decline in the
value of its portfolio securities. However, although this might occur for a
brief period or to a slight degree, the value of a diversified portfolio will
tend to move in the direction of the market generally.
The Portfolios can close out futures positions only on an exchange or
board of trade which provides a secondary market in such futures. Although the
Portfolios intend to purchase or sell only such futures for which an active
secondary market appears to exist, there can be no assurance that such a
market will exist for any particular futures contract at any particular time.
This might prevent the Portfolios from closing a futures position, which could
require a Portfolio to make daily cash payments with respect to its position
in the event of adverse price movements.
Options on futures transactions bear several risks apart from those
inherent in options transactions generally. The Portfolios' ability to close
out their options positions in futures contracts will depend upon whether an
active secondary market for such options develops and is in existence at the
time the Portfolios seek to close their positions. There can be no assurance
that such a market will develop or exist. Therefore, the Portfolios might be
required to exercise the options to realize any profit.
LENDING PORTFOLIO SECURITIES
The Fund 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. 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
the Fund must be able to terminate such loans upon notice at any time. The
Fund 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 the Fund 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 which may be invested in accordance with the Fund's
investment objective, policies and restrictions.
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, the Fund will make loans of its
portfolio securities only to those firms the Advisor or Subadvisor deems
creditworthy and only on terms the Advisor believes should compensate for such
risk. On termination of the loan, the borrower is obligated to return the
securities to the Fund. The Fund will recognize any gain or loss in the market
value of the securities during the loan period. The Fund may pay reasonable
custodial fees in connection with the loan.
INVESTMENT RESTRICTIONS
Fundamental Investment Restrictions
The foregoing investment objective and the following investment restrictions
may not be changed without the consent of the holders of a majority of
outstanding shares of the Portfolio. A majority of the shares means the lesser
of (i) 67% of the shares represented at a meeting at which more than 50% of
the outstanding shares are represented or (ii) more than 50% of the
outstanding shares.
Money Market, Balanced, Equity, and Managed Index Portfolios may not:
1. Issue senior securities or borrow money, except from banks for
temporary or emergency purposes and then only as permitted by law, in an
amount up to 33 1/3% of the value of that Portfolio's total assets or as
permitted by law and except by engaging in reverse repurchase agreements,
where allowed. In order to secure any permitted borrowings and reverse
repurchase agreements under this section, each Portfolio may pledge, mortgage
or hypothecate its assets.
2. Underwrite the securities of other issuers, except as permitted by
the Board of Trustees, within applicable law, and except to the extent that in
connection with the disposition of its portfolio securities, a Portfolio may
be deemed to be an underwriter.
3. Invest directly 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.
4. Make loans of more than one-third of the total assets of a Portfolio,
or as permitted by law, other than through the purchase of money market
instruments and repurchase agreements or by the purchase of bonds, debentures
or other debt securities.
5. Concentrate 25% or more of the value of its assets in any one
industry, or as permitted by law; 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 there is no limitation with respect
to investments in money market instruments of banks.
Bond Portfolio may not:
1. Issue senior securities or borrow money, except from banks for
temporary or emergency purposes and then only as permitted by law, in an
amount up to 33 1/3% of the value of that Portfolio's total assets or as
permitted by law and except by engaging in reverse repurchase agreements,
where allowed. In order to secure any permitted borrowings and reverse
repurchase agreements under this section, each Portfolio may pledge, mortgage
or hypothecate its assets.
2. Underwrite the securities of other issuers, except as permitted by
the Board of Trustees, within applicable law, and except to the extent that in
connection with the disposition of its portfolio securities, a Portfolio may
be deemed to be an underwriter.
3. Invest directly 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.
4. Make loans of more than one-third of the total assets of a Portfolio,
or as permitted by law, other than through the purchase of money market
instruments and repurchase agreements or by the purchase of bonds, debentures
or other debt securities.
5. The Bond Portfolio may concentrate 25% or more of the value of its
assets in any one industry, or as permitted by law.
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.
Money Market Portfolio may not:
1. Purchase the obligations of foreign issuers (except foreign money
market instruments that are U.S. dollar denominated).
Purchase illiquid securities if more than 10% of the value of the Portfolio's
net assets would be invested in such securities.
3. Make short sales of securities or purchase any securities on margin.
4. Write, purchase or sell puts, calls or combinations thereof.
5. Enter into reverse repurchase agreements if the aggregate proceeds
from outstanding reverse repurchase agreements, when added to other
outstanding borrowings permitted by the 1940 Act, would exceed 33 1/3% of the
Portfolio's total assets.
Balanced, Equity, and Bond Portfolios may not:
1. Purchase the obligations of foreign issuers if, as a result, such
securities would exceed 25% of the value of the Portfolio's assets.
2. Purchase illiquid securities if more than 15% of the value of that
Portfolio's net assets would be invested in such securities.
3. Make short sales of securities or purchase any securities on margin
except as provided with respect to options, futures contracts, and options on
futures contracts.
4. Write, purchase or sell puts, calls or combinations thereof except as
provided with respect to options, futures contracts and options on futures
contracts.
5. Enter into a futures contract or an option on a futures contract if
the aggregate initial margins and premiums required to establish these
positions would exceed 5% of the Portfolio's net assets.
6. Enter into reverse repurchase agreements if the aggregate proceeds
from outstanding reverse repurchase agreements, when added to other
outstanding borrowings permitted by the 1940 Act, would exceed 33 1/3% of the
Portfolio's total assets.
7. Purchase a put or call option on a security (including a straddle or
spread) if the value of that option premium, when aggregated with the premiums
on all other options on securities held by the Portfolio, would exceed 5% of
the Portfolio's total assets.
Index Portfolio may not:
1. Purchase the obligations of foreign issuers.
2. Purchase illiquid securities if more than 15% of the value of the
Portfolio's net assets would be invested in such securities.
3. Purchase debt securities (other than money market
instruments).
4. Enter into a futures contract or an option on a futures
contract if the aggregate initial margins and premiums
required to establish these positions would exceed 5% of the Portfolio's net
assets.
5. Make short sales of securities or purchase any securities on margin
except as provided with respect to options, futures contracts and options on
futures contracts.
6. Purchase a put or call option on a security (including a straddle or
spread) if the value of that option premium, when aggregated with the premiums
on all other options on securities held by the Portfolio, would exceed 5% of
the Portfolio's total assets.
7. Enter into reverse repurchase agreements if the aggregate proceeds
from outstanding reverse repurchase agreements, when added to other
outstanding borrowings permitted by the 1940 Act, would exceed 33 1/3% of the
Portfolio's total assets.
Any investment restriction which involves a maximum percentage of
securities or assets shall not be considered to be violated unless an excess
over the applicable percentage occurs immediately after an acquisition of
securities or utilization of assets and results therefrom.
INVESTMENT SELECTION PROCESS
Investments in the Fund are selected on the basis of their ability to
contribute to the dual objective of the Fund, (i.e., those that satisfy the
Fund's investment and social criteria). The Fund has developed a number of
techniques for evaluating the performance of issuers in each of these areas.
The primary sources of information are reports published by the issuers
themselves, the reports of public agencies, and the reports of groups which
monitor performance in particular areas. These sources of information are
sometimes augmented with direct interviews or written questionnaires addressed
to the issuers. It should be recognized, however, that there are few generally
accepted measures by which achievement in these areas can be readily
distinguished; therefore, the development of suitable measurement techniques
is largely within the discretion and judgment of the Advisors of the Fund.
Candidates for inclusion in any particular class of assets are then
examined according to the social criteria. Issuers are classified into three
categories of suitability under the social criteria. In the first category are
those issuers, which exhibit unusual positive accomplishment with respect to
some of the criteria and do not fail to meet minimum standards with respect to
the remaining criteria. To the greatest extent possible, investment selections
are made from this group. In the second category are those issuers, which meet
minimum standards with respect to all the criteria but do not exhibit
outstanding accomplishment with respect to any criterion. This category
includes issuers which may lack an affirmative record of accomplishment in
these areas but which are not known by Advisors to violate any of the social
criteria. The third category under the social criteria consists of issuers who
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 an U.S. Government
agency or instrumentality are supported by the full faith and credit of the
U.S. Government. These include obligations issued by the Export-Import Bank,
Farmers Home Administration, Government National Mortgage Association, Postal
Service, Merchant Marine, and Washington Metropolitan Area Transit Authority.
The Fund may also invest in other U.S. Government agency or instrumentality
obligations, which are supported only by the credit of the agency or
instrumentality and may be further supported by the right of the issuer to
borrow from the U.S. Treasury. Such obligations include securities issued by
the Bank for Cooperatives, Federal Intermediate Credit Bank, Federal Land
Bank, Federal Home Loan Bank, Federal Home Loan Mortgage Corporation, and
Federal National Mortgage Association.
DIVIDENDS, DISTRIBUTIONS AND TAXES
The Funds intend to qualify as regulated investment companies under
Subchapter M of the Internal Revenue Code. If for any reason the Fund should
fail to qualify, it would be taxed as a corporation at the Fund level, rather
than passing through its income and gains to shareholders.
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. As
of ___________, the following Funds had tax-loss carryforwards: $___________,
$_________.
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 reportable dividends and
long-term capital gain distributions paid and 31% of each reportable
redemption transaction occurring in the Balanced, Equity, Bond, and Managed
Index 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 Fund (not applicable to Money Market Portfolio): (a) the
shareholder's name, address, account number and taxpayer identification
number; (b) the total dollar value of the redemptions; and (c) the Fund's
identifying CUSIP number.
Certain shareholders are, however, exempt from the backup withholding
and broker reporting requirements. Exempt shareholders include: corporations;
financial institutions; tax-exempt organizations; individual retirement plans;
the U.S., a State, the District of Columbia, a U.S. possession, a foreign
government, an international organization, or any political subdivision,
agency or instrumentality of any of the foregoing; U.S. registered commodities
or securities dealers; real estate investment trusts; registered investment
companies; bank common trust funds; certain charitable trusts; foreign central
banks of issue. Non-resident aliens, certain foreign partnerships and foreign
corporations are generally not subject to either requirement but may instead
be subject to withholding under sections 1441 or 1442 of the Internal Revenue
Code. Shareholders claiming exemption from backup withholding and broker
reporting should call or write the Fund for further information.
Many states do not tax the portion of the Fund's dividends which is
derived from interest on U.S. Government obligations. State law varies
considerably concerning the tax status of dividends derived from U.S.
Government obligations. Accordingly, shareholders should consult their tax
advisors about the tax status of dividends and distributions from the Fund in
their respective jurisdictions.
Dividends paid by the Fund may be eligible for the dividends received
deduction available to corporate taxpayers. Information concerning the tax
status of dividends and distributions and the amount of dividends withheld, if
any, is mailed annually to Fund shareholders.
Investors should note that they may be required to exclude the
initial sales charge, if any, paid on the purchase of Fund shares from the tax
basis of those shares if the shares are exchanged for shares of another
Calvert Group Fund within 90 days of purchase. This requirement applies only
to the extent that the payment of the original sales charge on the shares of
the Fund causes a reduction in the sales charge otherwise payable on the
shares of the Calvert Group Fund acquired in the exchange, and investors may
treat sales charges excluded from the basis of the original shares as incurred
to acquire the new shares.
NET ASSET VALUE
Shares of the Money Market Portfolio are issued and redeemed at the
net asset value per share of the Portfolio. The public offering price of the
shares of the Balanced, Equity, Bond, and Managed Index Portfolios is the
respective net asset value per share (plus, for Class A shares, the applicable
sales charge). Shares of the other 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 other
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 as of 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. The Portfolio's net asset value per share is determined by dividing the
total net assets (the value of its assets net of liabilities, including
accrued expenses and fees) by the number of shares outstanding for each class.
The assets of the Balanced, Equity, Bond and Managed Index Portfolios
are valued as follows: (a) securities for which market quotations are readily
available are valued at the most recent closing price, mean between bid and
asked price, or yield equivalent as obtained from one or more market makers
for such securities; (b) securities maturing within 60 days may be valued at
cost, plus or minus any amortized discount or premium, unless the Board of
Trustees determines such method not to be appropriate under the circumstances;
and (c) all other securities and assets for which market quotations are not
readily available will be fairly valued by the Advisor in good faith under the
supervision of the Board of Trustees.
The Money Market Portfolio's assets, including securities subject to
repurchase agreements, are normally valued at their amortized cost which does
not take into account unrealized capital gains or losses. This involves
valuing an instrument at its cost and thereafter assuming a constant
amortization to maturity of any discount or premium, regardless of the impact
of fluctuating interest rates on the market value of the instrument. While
this method provides certainty in valuation, it may result in periods during
which value, as determined by amortized cost, is higher or lower than the
price that would be received upon sale of the instrument.
Net Asset Value and Offering Price Per Share, as of 9/30/98
CSIF Money Market Portfolio
($____________/________ shares) $1.00
CSIF Balanced Portfolio
Net asset value per share
($___________/_________ shares) $00.00
Maximum sales charge, Class A
(4.75% of offering price) 0.00
Offering price per share, Class A $00.00
Class B net asset value and offering price per share
($__________/__________ shares) $00.00
Class C net asset value and offering price per share
($__________/__________ shares) $00.00
CSIF Bond Portfolio
Net asset value per share
($_________/___________ shares) $00.00
Maximum sales charge
(3.75% of offering price) 0.00
Offering price per share $00.00
CSIF Equity Portfolio
Net asset value per share
($_________/___________ shares) $00.00
Maximum sales charge, Class A
(4.75% of offering price) 0.00
Offering price per share, Class A $00.00
Class B net asset value and offering price per share
($__________/__________ shares) $00.00
Class C net asset value and offering price per share
($_________/___________ shares) $00.00
CSIF Managed Index Portfolio
Net asset value per share
($____________/________ shares) $00.00
Maximum sales charge, Class A
(4.75% of offering price) 0.00
Offering price per share, Class A $00.00
Class B net asset value and offering price per share
($__________/__________ shares) $00.00
Class C net asset value and offering price per share
($_____________/_______ shares) $00.00
CALCULATION OF YIELD AND TOTAL RETURN
Money Market Portfolio: Yield
From time to time, the Money Market Portfolio advertises its "yield"
and "effective yield." Both yield figures are based on historical earnings and
are not intended to indicate future performance. The "yield" of the Money
Market Portfolio refers to the actual income generated by an investment in the
Portfolio over a particular base period of time. If the base period is less
than one year, the yield is then "annualized." That is, the net change,
exclusive of capital changes, in the value of a share during the base period
is divided by the net asset value per share at the beginning of the period,
and the result is multiplied by 365 and divided by the number of days in the
base period. Capital changes excluded from the calculation of yield are: (1)
realized gains and losses from the sale of securities, and (2) unrealized
appreciation and depreciation. The Money Market Portfolio's "effective yield"
for a seven-day period is its annualized compounded yield during the period,
calculated according to the following formula:
Effective yield = (base period return + 1)365/7 -1
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.
For the seven-day period ended September 30, 1998, the Money Market
Portfolio's yield was _____% and its effective yield was _____%.
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:
Yield = 2 (+1)6 - 1
where a = dividends and interest earned during the period using the aggregate
imputed yield-to maturity for each of the Portfolio's investments as noted
above; b = expenses accrued for the period (net of reimbursement); c = the
average daily number of shares outstanding during the period that were
entitled to receive dividends; and d = the maximum offering price per share on
the last day of the period. Using this calculation, the Bond Portfolio's yield
for the month ended September 30, 1998 was _____% for Class A shares, ____%
for Class B shares, and ____% for Class C shares.
The yield of both the Money Market and Bond Portfolios will fluctuate
in response to changes in interest rates and general economic conditions,
portfolio quality, portfolio maturity, and operating expenses. Yield is not
fixed or insured and therefore is not comparable to a savings or other similar
type of account. Yield during any particular time period should not be
considered an indication of future yield. It is, however, useful in evaluating
a Portfolio's performance in meeting its investment objective.
Balanced, Equity, Bond, and Managed Index Portfolios: Total Return and Other
Quotations
The Balanced, Equity, Bond, and Managed Index Portfolios may each
advertise "total return." Total return is calculated separately for each
class. 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. 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 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 "without CDSC") 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 Balanced, Bond, Equity, and Managed Index Portfolios'
shares for the periods indicated are as follows:
Periods Ended Class A Class B Class C
September 30, 1998 Total Return Total Return Total Return
With/Without Maximum Load With/Without CDSC With/Without CDSC
Balanced Portfolio
One Year 0% 0% 0% 0% 0% 0%
Five Years 0% 0% 0% 0% 0% N/A
Ten Years 0% 0% 0% 0% 0% 0%
From Inception N/A N/A 0% 0% 0% 0%
(Class C, March 1, 1994, Class B, April 1, 1998)
Bond Portfolio
One Year 0% 0% 0% 0% 0% 0%
Five Years 0% 0% 0% 0% 0% N/A
Ten Years 0% 0% 0% 0% 0% 0%
From Inception
Equity Portfolio
One Year 0% 0% 0% 0% 0% 0%
Five Years 0% 0% 0% 0% 0% N/A
Ten Years 0% 0% 0% 0% 0% 0%
From Inception N/A N/A 0% 0% 0% 0%
(March 1, 1994)
Managed Index Portfolio
One Year 0% 0% 0% 0% 0% 0%
From Inception N/A N/A 0% 0% 0% 0%
(March 3, 1994)
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. CAM assumed active management of the Bond Portfolio effective March,
1997, new sub-advisors assumed management of the Equity Portfolio effective
September 1998, and new sub-advisors assumed management of the Balanced
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.
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. See the prospectus
for more details on purchases and redemptions.
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.
Redemption proceeds are normally paid in cash. However, at the sole
discretion of the Fund, the Fund has the right to redeem shares in assets
other than cash for redemption amounts exceeding, in any 90-day period,
$250,000 or 1% of the net asset value of the Fund, whichever is less, or as
allowed by law.
The right of redemption may be suspended or the date of payment
postponed for any period during which the New York Stock Exchange is closed
(other than customary weekend and holiday closings), when trading on the New
York Stock Exchange is restricted, or an emergency exists, as determined by
the Securities and Exchange Commission, or if the Commission has ordered such
a suspension for the protection of shareholders.
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.
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, _______ 31, 19__). 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 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 Balanced Portfolio was
4.29% from December 18, 1992 through September 30, 1998. Past performance is
no guarantee of future results.
TRUSTEES, OFFICERS, AND ADVISORY COUNCIL
The Fund's Board of Trustees supervises the Fund's activities and
reviews its contracts with companies that provide it with services.
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: First Nations
Development Institute, 11917 Main Street, Fredericksburg, Virginia 22408.
RICHARD L. BAIRD, JR., Trustee. Mr. Baird is Executive Vice President
for the Family Health Council, Inc. in Pittsburgh, Pennsylvania, a non-profit
corporation which provides family planning services, nutrition, maternal/child
health care, and various health screening services. Mr. Baird is a
trustee/director of each of the investment companies in the Calvert Group of
Funds, except for Calvert Variable Series, Inc., Calvert New World Fund, Inc.
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 Executive Vice President of Calvert Social Investment Fund, 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, a director of Ariel Funds, 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 Variable Series, Inc. and Calvert
New World Fund, Inc. 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. 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 Trustee. Ms. Krumsiek serves as
President, Chief Executive Officer and Vice Chairman of Calvert Group, Ltd.
and as an officer and director of each of its affiliated companies. She is a
director of Calvert-Sloan Advisers, L.L.C., and a trustee/director of each of
the investment companies in the Calvert Group of Funds. She is the Senior Vice
President of Calvert Social Investment Fund. Prior to joining Calvert Group,
Ms. Krumsiek served as a Managing Director of Alliance Fund Distributors, Inc.
DOB: 08/09/52.
TERRENCE J. MOLLNER, Ed.D., Trustee. Dr. Mollner is Founder,
Chairperson, and President 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. He is a Director of Calvert Administrative
Services Company, Inc., Calvert Asset Management Company, Inc., Calvert
Shareholder Services, Inc., and The Advisor Group, Inc. DOB: 4/22/46. Address:
7315 Wisconsin Avenue, Bethesda, Maryland 20814.
*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 Variable Series, Inc. and Calvert New World Fund. He is the President
of Calvert Social Investment Fund. Mr. Silby is Executive Chairman of Group
Serve, Inc., 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. He is also a Director of Acacia Mutual Life Insurance
Company. 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 Chief Financial Officer 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, Esq., Assistant Secretary and Compliance Officer. Ms.
Crossley 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 and Secretary and provides
counsel to the Calvert Social Investment Foundation. 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 each Portfolio'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 special equity
investment opportunities for the Fund.
The Advisory Council is a resource to the Fund's Board of Trustees regarding
communications networks for the Fund and the application and refinement of the
Fund's social criteria. 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 1998, trustees of the Fund not affiliated with the
Fund's Advisor were paid $________ by the Money Market Portfolio, $__________
by the Balanced Portfolio, $__________ by the Bond Portfolio, and $__________
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.
<PAGE>
Trustee Compensation Table
Fiscal Year 1998 Aggregate Pension Total
(unaudited numbers) Compensation or Compensation
from Retirement from
Registrant Benefits Registrant
for Service Accrued and Fund
as Director as Part of Complex
Registrant paid to
Expenses* Director
Name of Trustee
Rebecca Adamson $0 $0 $0
Richard L. Baird, Jr. $0 $0 $0
John G. Guffey, Jr. $0 $0 $0
Joy V. Jones $0 $0 $0
Terrence J. Mollner $0 $0 $0
Sydney Amara Morris $0 $0 $0
D. Wayne Silby $0 $0 $0
*Ms. Adamson has chosen to defer a portion of her compensation. Her total
deferred compensation, including dividends and capital appreciation, was
$__________ as of September 30, 1998.
**As of December 31, 1998. 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"). Effective on or about January
1, 1999, Acacia Mutual will merge with and become a subsidiary of Ameritas
Acacia Mutual Holding Company. Under the Advisory 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. The Advisor
provides the Funds with investment supervision and management, 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 the Advisor
or its affiliates. The Fund pays all other administrative and operating
expenses, including: custodial, registrar, dividend disbursing and transfer
agency fees; administrative service 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 employees
of the Advisor or of its affiliates; 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.
Under a new advisory agreement expected to be approved by
shareholders in early 1999, the Advisor receives an annual fee, payable
monthly, of 0.375% of the first $500 million of the Balanced Portfolio's
average daily net assets, 0.35% of the next $500 million of such assets, and
0.325% of all assets over $1 billion; 0.30% of the Bond Portfolio's average
daily net assets; 0.45% of the Equity Portfolio's average daily net assets;
0.50% of the Money Market Portfolio's average daily net assets and 0.60% of
the first $500 million of the Managed Index Portfolio's average daily net
assets, and 0.55% of any such assets over $500 million.*
The Advisor reserves the right to (i) waive all or a part of its fee; (ii)
reimburse the Fund for expenses; and (iii) pay broker-dealers in consideration
of their promotional or administrative services.
The Advisor may, but is not required to waive current payment of its fees, or
to reimburse expenses of the Fund. The Advisor has agreed to reimburse the
Money Market, Balanced, and Bond Portfolios for their respective operating
expenses (excluding brokerage, taxes, interest, Distribution Plan expenses and
extraordinary items, and, with respect to the Balanced 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.
Any fees the current payment of which is waived by the Advisor and any
expenses paid on behalf of or reimbursed to the Managed Index Portfolio by the
Advisor through February 29, 2000, may be recaptured by the Advisor from the
Portfolio during the two years beginning March 1, 2000, and ending February
28, 2002. Such recapture shall only be made to the extent that it does not
result in the Portfolio's Class A aggregate expenses exceeding on an annual
basis 2.00% of Class A average daily net assets, and 3.25%, 3.25%, and 1.25%,
respectively, for Class B, Class C and Class I. The Advisor may voluntarily
make additional fee waivers or expense reimbursements with respect to the
Portfolio from March 1, 2000 through February 28, 2002, ("Additional Period");
provided, however, that (a) any fees the current payment of which is waived by
the Advisor and any expenses paid on behalf of or reimbursed to the Portfolio
by the Advisor during the Additional Period may be recaptured by the Advisor
from the Portfolio during the two years beginning on March 1, 2002 and ending
February 29, 2004 and (b) such recapture shall only be made to the extent that
it does not result in the Portfolio's Class A aggregate expenses exceeding on
an annual basis 2.00% of Class A average daily net assets, and 3.25%, 3.25%
and 1.25%, respectively, for Class B, Class C and Class I.
Subadvisors
Brown Capital Management, Inc. is controlled by Eddie C. Brown. It
receives a subadvisory fee, paid by the Advisor, of 0.25% of net assets.^
NCM Capital Management Group, Inc. is controlled by ______________.
It receives a subadvisory fee, paid by the Advisor, of 0.25% of net assets.^
Atlanta Capital Management Company is controlled by ____________. For
its services to CSIF Equity, it receives a subadvisory fee, paid by the
Advisor, of 0.30% of the assets it manages for CSIF Equity.**
State Street Global Advisors is a division of State Street Bank and Trust. It
receives a subadvisor fee paid by the Advisor, of 0.35% of the Portfolio's
first $100 million of average net assets and 0.25% of any such assets over
$100 million, subject to a minimum annual fee of $150,000.
*If the new advisory agreement between the Fund and Calvert Asset Management
Company, Inc. is not approved by the Board and Shareholders, then the old
agreement will continue in effect with the following fees:
For its services, the Advisor receives an annual fee, payable
monthly, of 0.70% of the first $500 million of the Balanced 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, and 60% of the first $500 million of the Managed Index
Portfolio's average daily net assets, and 0.55% of any such assets over $500
million..
The Balanced Portfolio has a performance adjustment to the base fee
as follows:
Performance Relative to Lipper Balance Funds Performance Adjustment
.06% but less than .12% 0.05%
.12% but less than .18% 0.10%
.18% or more 0.15%
The Equity Portfolio has a performance adjustment to the base fee as follows:
Performance Relative to Lipper Balance Funds Performance Adjustment
.06% but less than .12% 0.07%
.12% but less than .18% 0.14%
.18% or more 0.20%
^If the new subadvisory agreements for the Balanced Portfolio is not approved
by the Board and Shareholders, then the old agreements will continue in effect
with the following fees:
Brown Capital Management, Inc. is controlled by Eddie C. Brown. It
receives a subadvisory fee, paid by the Advisor. Base rate of 0.25% of net
asset plus or minus a performance fee adjustment as follows:
Performance Relative to Lipper Balance Funds Performance Adjustment
.06% but less than .12% 0.05%
.12% but less than .18% 0.10%
.18% or more 0.15%
NCM Capital Management Group, Inc. is controlled by ___________. It
receives a subadvisory fee, paid by the Advisor. Base rate of 0.25% of net
asset plus or minus a performance fee adjustment as follows:
Performance Relative to Lipper Balance Funds Performance Adjustment
.06% but less than .12% 0.05%
.12% but less than .18% 0.10%
.18% or more 0.15%
** If the new subadvisory agreements for the Equity Portfolio is not approved
by the Shareholders then the old agreements will continue in effect with the
following fees:
Atlanta Capital, as susbavisor to the Equity Portfolio, receives a fee of 0.25%
of assets.
The Fund has received an exemptive order to permit the Fund and the Advisor to
enter into and materially amend the Investment Subadvisory Agreement without
shareholder approval. The order is currently applicable to the Equity and
Managed Index Portfolio. Authorization for the Advisor to act on the order
with respect to the other Portfolios is currently pending shareholder
approval. If approved, then within 90 days of the hiring of any Subadvisor or
the implementation of any proposed material change in the Investment
Subadvisory Agreement, the Portfolio will furnish its shareholders information
about the new Subadvisor or Investment Subadvisory Agreement that would be
included in a proxy statement. Such information will include any change in
such disclosure caused by the addition of a new Subadvisor or any proposed
material change in the Investment Subadvisory Agreement of the Portfolio. The
Portfolio will meet this condition by providing shareholders, within 90 days
of the hiring of the Subadvisor or implementation of any material change to
the terms of an Investment Subadvisory Agreement, with an information
statement to this effect.
The advisory fees paid to the Advisor by the Money Market Portfolio
for the fiscal years ended September 30, 1996, 1997, and 1998 were $809,573,
$829,686, and $_________, respectively. The advisory fees paid to the Advisor
by the Balanced Portfolio for the same years were $4,054,218, $3,739,407, and
$_________, respectively. The advisory fees paid to the Advisor for these
years by the Bond Portfolio were $421,016, $363,612, and $_________; by the
Equity Portfolio $496,208, $683,046, and $_________; and by the Managed Index
Portfolio $________.(inception________).
Calvert Administrative Services Company ("CASC"), an affiliate of the
Advisor, has been retained by the Fund to provide certain administrative
services necessary to the conduct of its affairs, including the preparation of
regulatory filings and shareholder reports. For providing such services, CASC
receives an annual administrative service fee payable monthly (as a percentage
of net assets) as follows:
Class A, B, and C Class I
Balanced 0.325% 0.175%
Bond 0.35% 0.15%
Equity 0.25% 0.15%
Managed Index 0.15% 0.10%
From its inception through September 30, 1998, Managed Index Portfolio paid
$_______ to CASC in administrative fees. The other Portfolios will begin to
pay CASC an administrative service fee in 1999.
For those Portfolios with multiple classes, investment advisory fees are
allocated as a Portfolio-level expense based on net assets. Administrative
service fees are allocated as a class-level expense, again based on net assets.
METHOD OF DISTRIBUTION
Calvert Distributors, Inc. ("CDI") is the principal underwriter and
distributor for the Fund. Under the terms of its underwriting agreement with
the Funds, CDI markets and distributes the Fund's shares and is responsible
for preparing advertising and sales literature, and printing and mailing
prospectuses to prospective investors.
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
Balanced, Equity and Bond Portfolios' respective average daily net assets and
0.25% of the Money Market and Managed Index Portfolios' 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 Balanced 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 Balanced, Bond, Equity and Managed Index
Portfolios' Class B and Class C average daily net assets, respectively. Class
A Distribution Plans reimburse CDI only for expenses it incurs, while the
Class B and C Distribution Plans compensate CDI at a set rate regardless of
CDI's expenses.
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. If the Fund should ever switch to a new
principal underwriter without terminating the Class B Plan, the fee would be
prorated between CDI and the new principal underwriter. 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.
CDI, 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 and a service fee from the Fund
based on the average daily net assets of each Portfolio's respective Classes.
These fees are paid pursuant to the Fund's Distribution Plan. The Distribution
Plan Expenses (includes both distribution fees and services fees) paid by each
fund (all classes) to CDI for the fiscal year ended September 30, 1998, is as
follows:
Distribution Plan Expenses
Money Market $0.00
Balanced $0.00
Bond $0.00
Equity $0.00
Managed Index $0.00
Of the distribution expenses paid by Class A Shares of the Balanced, Bond,
Equity, and Managed Index Portfolios in fiscal year 1998, $________,
$________, $_______, and $_______, respectively, was used to compensate
dealers for their share distribution promotional services. $________,
$________, $_______, and $_______ was used for the printing and mailing of
prospectuses and sales materials to investors (other than current
shareholders), and the remainder partially financed advertising.
CSIF Balanced, Equity, and Managed Index Portfolios
Class A shares are offered at net asset value plus a front-end sales charge as
follows:
<PAGE>
As a % of As a % of Allowed to
Amount of offering net amount Brokers as a % of
Investment price invested offering price
Less than $50,000 4.75% 4.99% 4.00%
$50,000 but less than $100,000 3.75% 3.90% 3.00%
$100,000 but less than $250,000 2.75% 2.83% 2.25%
$250,000 but less than $500,000 1.75% 1.78% 1.25%
$500,000 but less than $1,000,000 1.00% 1.01% 0.80%
$1,000,000 and over 0.00% 0.00% 0.00%
CSIF Bond Portfolio
Class A Shares are offered at net asset value plus a front-end sales charge as
follows:
As a % of As a % of Allowedto
Amount of offering net amount Brokers as a % of
Investment 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%
CDI receives any front-end sales charge or CDSC paid. A portion of
the front-end sales charge may be reallowed to dealers. The aggregate amount
of sales charges (gross underwriting commissions) and for Class A only, the
amount retained by CDI (i.e., not reallowed to dealers) for the last 3 fiscal
years are:
Class A
Gross/Net Class B Class C
Fiscal Year 96 97 98 96 97 98 96 97 98
Balanced X/XX/XX/X NA NA X X X X
Bond X/XX/XX/X NA NA X X X X
Equity X/XX/XX/X NA NA X NA NA X
Managed Index X/XX/XX/X NA NA X NA NA X
Fund Trustees and certain other affiliated persons of the Fund are
exempt from the sales charge since the distribution costs are minimal to
persons already familiar with the Fund. Other groups (e.g., group retirement
plans) are exempt due to economies of scale in distribution. See Exhibit A to
the Prospectus.
TRANSFER AND SHAREHOLDER SERVICING AGENTS
National Financial Data Services, Inc. ("NFDS"), a subsidiary of
State Street Bank & Trust, has been retained by the Fund to act as transfer
agent and dividend disbursing agent. These responsibilities include:
responding to certain shareholder inquiries and instructions, crediting and
debiting shareholder accounts for purchases and redemptions of Fund shares and
confirming such transactions, and daily updating of shareholder accounts to
reflect declaration and payment of dividends.
Calvert Shareholder Services, Inc., a subsidiary of Calvert Group,
Ltd., and Acacia Mutual, has been retained by the Fund to act as shareholder
servicing agent. Shareholder servicing responsibilities include responding to
shareholder inquiries and instructions concerning their accounts, entering any
telephoned purchases or redemptions into the NFDS system, maintenance of
broker-dealer data, and preparing and distributing statements to shareholders
regarding their accounts. Calvert Shareholder Services, Inc. was the sole
transfer agent prior to January 1, 1998.
For these services, NFDS and Calvert Shareholder Services, Inc.
receive a 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. The Fund's Advisor and Subadvisors
make investment decisions and the choice of brokers and dealers 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 execution capability and trading
expertise considering, among other factors, the overall reasonableness of the
brokerage commissions, current market conditions, size and timing of the
order, difficulty of execution, per share price, etc.
For the last three fiscal years, total brokerage commissions paid are
as follows:
1996 1997 1998
Balanced
Equity
Bond
Managed Index
The Fund did not pay any brokerage commissions to affiliated persons during
the last three fiscal years.
While the Fund's subadvisors select brokers primarily on the basis of best
execution, in some cases the Advisor may ask the Subadvisor to direct
transactions to brokers based on the quality and amount of the research and
research-related services which the brokers provide the Advisor. These
services are of the type described in Section 28(e) of the Securities Exchange
Act of 1934, and are designed primarily to assist the Advisor in monitoring
the investment activities of the subadvisor of the Fund. Such services include
portfolio attribution systems, return-based style analysis, and
trade-execution analysis. It is the policy of the Advisor that such research
services will be used for the benefit of the Fund as well as other Calvert
Group funds and managed accounts.
For the fiscal year ended September 30, 1998, the Fund directed
brokerage for research services in the following amounts:
Portfolio Amount of Transactions Commissions
Balanced $ $
Equity $ $
Bond $ $
Managed Index $ $
The Portfolio turnover rates for the last two fiscal years are as
follows:
1997 1998
Balanced
Equity
Bond
Managed Index
The turnover of the Bond Portfolio, and to a lesser extent, the
Balanced Portfolio increased significantly from fiscal year 1997 to 1998. This
increase was due to the implementation of the Advisor's more active trading
strategy.
INDEPENDENT ACCOUNTANTS AND CUSTODIANS
PricewaterhouseCoopers, L.L.P., has been selected by the Board of
Trustees to serve as independent accountants for fiscal year 1999. 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.
CONTROL PERSONS AND PRINCIPAL HOLDERS OF SECURITIES
The following persons own more than 25% of the outstanding voting
securities (all classes combined) of, or are otherwise deemed to control, the
Portfolio(s) shown as of __________ (a date not more than 30 days prior to
filing):
Name Address % held
The following persons own 5% or more of the outstanding voting
securities of any Class of a Portfolio:
Name Address % held
GENERAL INFORMATION
CSIF is an open-end diversified management investment company,
organized as a Massachusetts business trust on December 14, 1981. Prior to
December 1, 1998, the Balanced Portfolio was named the Managed Growth
Portfolio. The Fund's Declaration of Trust contains an express disclaimer of
shareholder liability for acts or obligations of the Fund. The shareholders of
a Massachusetts business trust might, however, under certain circumstances, be
held personally liable as partners for its obligations. The Declaration of
Trust provides for indemnification and reimbursement of expenses out of Fund
assets for any shareholder held personally liable for obligations of the Fund.
The Declaration of Trust 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 Balanced, Equity, and Managed Index Portfolios each offer four
separate classes of shares: Class A, Class B, Class C and Class I. The Bond
Portfolio offers 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 Funds are not required to hold annual shareholder meetings, but
special meetings may be called for certain purposes such as electing Trustees,
changing fundamental policies, or approving a management contract. As a
shareholder, you receive one vote for each share you own, except that matters
affecting classes differently, such as Distribution Plans, will be voted on
separately by the affected class(es).
APPENDIX
CORPORATE BOND AND COMMERCIAL PAPER RATINGS
Corporate Bonds:
Description of Moody's Investors Service Inc.'s/Standard & Poor's bond ratings:
Aaa/AAA: Best quality. These bonds carry the smallest degree of
investment risk and are generally referred to as "gilt edge." Interest
payments are protected by a large or by an exceptionally stable margin and
principal is secure. This rating indicates an extremely strong capacity to pay
principal and interest.
Aa/AA: Bonds rated AA also qualify as high-quality debt obligations.
Capacity to pay principal and interest is very strong, and in the majority of
instances they differ from AAA issues only in small degree. They are rated
lower than the best bonds because margins of protection may not be as large as
in Aaa securities, fluctuation of protective elements may be of greater
amplitude, or there may be other elements present which make long-term risks
appear somewhat larger than in Aaa securities.
A/A: Upper-medium grade obligations. Factors giving security to
principal and interest are considered adequate, but elements may be present
which make the bond somewhat more susceptible to the adverse effects of
circumstances and economic conditions.
Baa/BBB: Medium grade obligations; adequate capacity to pay principal
and interest. Whereas they normally exhibit adequate protection parameters,
adverse economic conditions or changing circumstances are more likely to lead
to a weakened capacity to pay principal and interest for bonds in this
category than for bonds in higher rated categories.
Ba/BB, B/B, Caa/CCC, Ca/CC: Debt rated in these categories is
regarded as predominantly speculative with respect to capacity to pay interest
and repay principal. The higher the degree of speculation, the lower the
rating. While such debt will likely have some quality and protective
characteristics, these are outweighed by large uncertainties or major risk
exposure to adverse conditions.
C/C: This rating is only for income bonds on which no interest is
being paid.
D: Debt in default; payment of interest and/or principal is in
arrears.
Commercial Paper Ratings:
MOODY'S INVESTORS SERVICE, INC.:
The Prime rating is the highest commercial paper rating assigned by
Moody's. Among the factors considered by Moody's in assigning ratings are the
following: (1) evaluation of the management of the issuer; (2) economic
evaluation of the issuer's industry or industries and an appraisal of
speculative-type risks which may be inherent in certain areas; (3) evaluation
of the issuer's products in relation to competition and customer acceptance;
(4) liquidity; (5) amount and quality of long-term debt; (6) trend of earnings
over a period of ten years; (7) financial strength of a parent company and the
relationships which exist with the issuer; and (8) recognition by management
of obligations which may be present or may arise as a result of public
interest questions and preparations to meet such obligations. Issuers within
this Prime category may be given ratings 1, 2, or 3, depending on the relative
strengths of these factors.
STANDARD & POOR'S CORPORATION:
Commercial paper rated A by Standard & Poor's has the following
characteristics: (i) liquidity ratios are adequate to meet cash requirements;
(ii) long-term senior debt rating should be A or better, although in some
cases BBB credits may be allowed if other factors outweigh the BBB; (iii) the
issuer should have access to at least two additional channels of borrowing;
(iv) basic earnings and cash flow should have an upward trend with allowances
made for unusual circumstances; and (v) typically the issuer's industry should
be well established and the issuer should have a strong position within its
industry and the reliability and quality of management should be unquestioned.
Issuers rated A are further referred to by use of numbers 1, 2 and 3 to denote
the relative strength within this highest classification.
LETTER OF INTENT
Date
Calvert Distributors, Inc.
4550 Montgomery Avenue
Bethesda, MD 20814
Ladies and Gentlemen:
By signing this Letter of Intent, or affirmatively marking the Letter
of Intent option on my Fund Account Application Form, I agree to be bound by
the terms and conditions applicable to Letters of Intent appearing in the
Prospectus and the Statement of Additional Information for the Fund and the
provisions described below as they may be amended from time to time by the
Fund. Such amendments will apply automatically to existing Letters of Intent.
I intend to invest in the shares of:_____________________ (Fund
or Portfolio name) during the thirteen (13) month period from the date of my
first purchase pursuant to this Letter (which cannot be more than ninety (90)
days prior to the date of this Letter or my Fund Account Application Form,
whichever is applicable), an aggregate amount (excluding any reinvestments of
distributions) of at least fifty thousand dollars ($50,000) which, together
with my current holdings of the Fund (at public offering price on date of this
Letter or my Fund Account Application Form, whichever is applicable), will
equal or exceed the amount checked below:
__ $50,000 __ $100,000 __ $250,000 __ $500,000 __ $1,000,000
Subject to the conditions specified below, including the terms of
escrow, to which I hereby agree, each purchase occurring after the date of
this Letter will be made at the public offering price applicable to a single
transaction of the dollar amount specified above, as described in the Fund's
prospectus. "Fund" in this Letter of Intent shall refer to the Fund or
Portfolio, as the case may be. No portion of the sales charge imposed on
purchases made prior to the date of this Letter will be refunded.
I am making no commitment to purchase shares, but if my purchases
within thirteen months from the date of my first purchase do not aggregate the
minimum amount specified above, I will pay the increased amount of sales
charges prescribed in the terms of escrow described below. I understand that
4.75% of the minimum dollar amount specified above will be held in escrow in
the form of shares (computed to the nearest full share). These shares will be
held subject to the terms of escrow described below.
From the initial purchase (or subsequent purchases if necessary),
4.75% of the dollar amount specified in this Letter shall be held in escrow in
shares of the Fund by the Fund's transfer agent. For example, if the minimum
amount specified under the Letter is $50,000, the escrow shall be shares
valued in the amount of $2,375 (computed at the public offering price adjusted
for a $50,000 purchase). All dividends and any capital gains distribution on
the escrowed shares will be credited to my account.
If the total minimum investment specified under the Letter is
completed within a thirteen month period, escrowed shares will be promptly
released to me. However, shares disposed of prior to completion of the
purchase requirement under the Letter will be deducted from the amount
required to complete the investment commitment.
Upon expiration of this Letter, the total purchases pursuant to the
Letter are less than the amount specified in the Letter as the intended
aggregate purchases, Calvert Distributors, Inc. ("CDI") will bill me for an
amount equal to the difference between the lower load I paid and the dollar
amount of sales charges which I would have paid if the total amount purchased
had been made at a single time. If not paid by the investor within 20 days,
CDI will debit the difference from my account. Full shares, if any, remaining
in escrow after the aforementioned adjustment will be released and, upon
request, remitted to me.
I irrevocably constitute and appoint CDI as my attorney-in-fact, with
full power of substitution, to surrender for redemption any or all escrowed
shares on the books of the Fund. This power of attorney is coupled with an
interest.
The commission allowed by CDI to the broker-dealer named herein shall
be at the rate applicable to the minimum amount of my specified intended
purchases.
The Letter may be revised upward by me at any time during the
thirteen-month period, and such a revision will be treated as a new Letter,
except that the thirteen-month period during which the purchase must be made
will remain unchanged and there will be no retroactive reduction of the sales
charges paid on prior purchases.
In determining the total amount of purchases made hereunder, shares
disposed of prior to termination of this Letter will be deducted. My
broker-dealer shall refer to this Letter of Intent in placing any future
purchase orders for me while this Letter is in effect.
______________________ _______________________
Dealer Name of Investor(s)
_______________________ ________________________
By Authorized Signer Address
_____________________ _______________________
Date Signature of Investor(s)
______________________ _______________________
Date Signature of Investor(s)
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. PricewaterhouseCoopers, L.L.P.
4550 Montgomery Avenue 250 West Pratt Street
Suite 1000N Baltimore, Maryland 21201
Bethesda, Maryland 20814
<PAGE>
PART C. OTHER INFORMATION
Item 23. 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, incorporated by reference to
Registrant's Post-Effective Amendment No. 27, March 31, 1998.
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, incorporated by reference to
Registrant's Post-Effective Amendment No. 27, March 31, 1998.
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).
17. Multiple-class plan pursuant to Investment Company Act of 1940
Rule 18f-3, incorporated by reference to Registrant's Post-Effective
Amendment No. 27, March 31, 1998.
Item 24. Persons Controlled By or Under Common Control With Registrant
Not applicable.
Item 25. 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 26. Business and Other Connections of Investment Adviser
Name of Company, Principal
Name Business and Address Capacity
Barbara J. Krumsiek Calvert Variable Series, Inc. Officer
Calvert Municipal Fund, Inc. and
Calvert World Values Fund, Inc. Director
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
First Variable Rate Fund for Officer
Government Income and
Calvert Tax-Free Reserves Trustee
Calvert Social Investment Fund
Calvert Cash Reserves
The Calvert Fund
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Asset Management Co., Inc. Officer
Investment Advisor and
4550 Montgomery Avenue Director
Bethesda, Maryland 20814
----------------
Calvert Group, Ltd. Officer
Holding Company and
4550 Montgomery Avenue Director
Bethesda, Maryland 20814
----------------
Calvert Shareholder Services, Inc. Officer
Transfer Agent and
4550 Montgomery Avenue Director
Bethesda, Maryland 20814
---------------
Calvert Administrative Services Co. Officer
Service Company and
4550 Montgomery Avenue Director
Bethesda, Maryland 20814
---------------
Calvert Distributors, Inc. Officer
Broker-Dealer and
4550 Montgomery Avenue Director
Bethesda, Maryland 20814
---------------
Calvert-Sloan Advisers, LLC Director
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert New World Fund, Inc. Director
Investment Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
--------------
Alliance Capital Mgmt. L.P. Sr. Vice President
Mutual Fund Division Director
1345 Avenue of the Americas
New York, NY 10105
--------------
Ronald M. Wolfsheimer First Variable Rate Fund Officer
for Government Income
Calvert Tax-Free Reserves
Calvert Cash Reserves
Calvert Social Investment Fund
The Calvert Fund
Calvert Variable Series, Inc.
Calvert Municipal Fund, Inc.
Calvert World Values Fund, Inc.
Calvert New World Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
--------------
Calvert Asset Management Co., Inc. Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Group, Ltd. Officer
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Shareholder Services, Inc. Officer
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Administrative Services Co. Officer
Service Company and
4550 Montgomery Avenue Director
Bethesda, Maryland 20814
---------------
Calvert Distributors, Inc. Director
Broker-Dealer and
4550 Montgomery Avenue Officer
Bethesda, Maryland 20814
---------------
Calvert-Sloan Advisers, LLC Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
David R. Rochat First Variable Rate Fund Officer
for Government Income and
Calvert Tax-Free Reserves Trustee
Calvert Cash Reserves
The Calvert Fund
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Municipal Fund, Inc. Officer
Investment Company and
4550 Montgomery Avenue Director
Bethesda, Maryland 20814
---------------
Calvert Asset Management Co., Inc. Officer
Investment Advisor and
4550 Montgomery Avenue Director
Bethesda, Maryland 20814
---------------
Chelsea Securities, Inc. Officer
Securities Firm and
Post Office Box 93 Director
Chelsea, Vermont 05038
---------------
Grady, Berwald & Co. Officer
Holding Company and
43A South Finley Avenue Director
Basking Ridge, NJ 07920
---------------
Reno J. Martini Calvert Asset Management Co., Inc. Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Group, Ltd. Officer
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
First Variable Rate Fund Officer
for Government Income
Calvert Tax-Free Reserves
Calvert Cash Reserves
Calvert Social Investment Fund
The Calvert Fund
Calvert Variable Series, Inc.
Calvert Municipal Fund, Inc.
Calvert World Values Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert New World Fund, Inc. Director
Investment Company and
4550 Montgomery Avenue Officer
Bethesda, Maryland 20814
---------------
Calvert-Sloan Advisers, LLC Director
Investment Advisor and
4550 Montgomery Avenue Officer
Bethesda, Maryland 20814
---------------
Charles T. Nason Acacia Mutual Life Insurance Officer
Acacia National Life Insurance and Director
Insurance Companies
7315 Wisconsin Avenue
Bethesda, Maryland 20814
---------------
Acacia Financial Corporation Officer
Holding Company and
7315 Wisconsin Avenue Director
Bethesda, Maryland 20814
---------------
Gardner Montgomery Company Director
Tax Return Preparation Services
7315 Wisconsin Avenue
Bethesda, Maryland 20814
----------------
Acacia Federal Savings Bank Director
Savings Bank
7600-B Leesburg Pike
Falls Church, Virginia 22043
---------------
Enterprise Resources, Inc. Director
Business Support Services
7315 Wisconsin Avenue
Bethesda, Maryland 20814
---------------
Acacia Insurance Management Officer
Services Corporation and
Service Corporation Director
7315 Wisconsin Avenue
Bethesda, Maryland 20814
---------------
Calvert Group, Ltd. Director
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Administrative Services Co. Director
Service Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Asset Management Co., Inc. Director
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Shareholder Services, Inc. Director
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Social Investment Fund Trustee
Investment Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
-----------------
The Advisors Group, Inc. Director
Broker-Dealer and
Investment Advisor
7315 Wisconsin Avenue
Bethesda, Maryland 20814
---------------
Robert-John H. Acacia National Life Insurance Officer
Sands Insurance Company and
7315 Wisconsin Avenue Director
Bethesda, Maryland 20814
----------------
Acacia Mutual Life Insurance Officer
Insurance Company
7315 Wisconsin Avenue
Bethesda, Maryland 20814
----------------
Acacia Financial Corporation Officer
Holding Company and
7315 Wisconsin Avenue Director
Bethesda, Maryland 20814
----------------
Acacia Federal Savings Bank Officer
Savings Bank
7600-B Leesburg Pike
Falls Church, Virginia 22043
---------------
Enterprise Resources, Inc. Director
Business Support Services
7315 Wisconsin Avenue
Bethesda, Maryland 20814
---------------
Acacia Realty Corporation Officer
Real Estate Investments
7315 Wisconsin Avenue
Bethesda, Maryland 20814
---------------
Acacia Insurance Management Officer
Services Corporation and
Service Corporation Director
7315 Wisconsin Avenue
Bethesda, Maryland 20814
---------------
Gardner Montgomery Company Officer
Tax Return and
Preparation Services Director
7315 Wisconsin Avenue
Bethesda, Maryland 20814
----------------
The Advisors Group, Inc. Director
Broker-Dealer and
Investment Advisor
7315 Wisconsin Avenue
Bethesda, Maryland 20814
---------------
Calvert Group, Ltd. Director
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Administrative Services Co. Director
Service Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Asset Management, Co., Inc. Director
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Shareholder Services, Inc. Director
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
William M. Tartikoff Acacia National Life Insurance Officer
Insurance Company
7315 Wisconsin Avenue
Bethesda, Maryland 20814
----------------
First Variable Rate Fund for Officer
Government Income
Calvert Tax-Free Reserves
Calvert Cash Reserves
Calvert Social Investment Fund
The Calvert Fund
Calvert Variable Series, Inc.
Calvert Municipal Fund, Inc.
Calvert World Values Fund, Inc.
Calvert New World Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Group, Ltd. Officer
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Administrative Officer
Services Company
Service Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Asset Management Co. Inc. Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Shareholder Services, Inc. Officer
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Distributors, Inc. Director
Broker-Dealer and
4550 Montgomery Avenue Officer
Bethesda, Maryland 20814
----------------
Calvert-Sloan Advisers, LLC Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Susan Walker Bender Calvert Group, Ltd. Officer
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Administrative Services Co. Officer
Service Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Asset Management Co., Inc. Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Shareholder Services, Inc. Officer
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Distributors, Inc. Officer
Broker-Dealer
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert-Sloan Advisers, LLC Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
First Variable Rate Fund for Officer
Government Income
Calvert Tax-Free Reserves
Calvert Cash Reserves
Calvert Social Investment Fund
The Calvert Fund
Calvert Variable Series, Inc.
Calvert Municipal Fund, Inc.
Calvert World Values Fund, Inc.
Calvert New World Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Katherine Stoner Calvert Group, Ltd. Officer
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Administrative Services Co. Officer
Service Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Asset Management Co., Inc. Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Shareholder Services, Inc. Officer
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Distributors, Inc. Officer
Broker-Dealer
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert-Sloan Advisers, LLC Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
First Variable Rate Fund for Officer
Government Income
Calvert Tax-Free Reserves
Calvert Cash Reserves
Calvert Social Investment Fund
The Calvert Fund
Calvert Variable Series, Inc.
Calvert Municipal Fund, Inc.
Calvert World Values Fund, Inc.
Calvert New World Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Lisa Crossley Newton Calvert Group, Ltd. Officer
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Administrative Services Co. Officer
Service Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Asset Management Co., Inc. Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Shareholder Services, Inc. Officer
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Distributors, Inc. Officer
Broker-Dealer
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert-Sloan Advisers, LLC Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
First Variable Rate Fund for Officer
Government Income
Calvert Tax-Free Reserves
Calvert Cash Reserves
Calvert Social Investment Fund
The Calvert Fund
Calvert Variable Series, Inc.
Calvert Municipal Fund, Inc.
Calvert World Values Fund, Inc.
Calvert New World Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Ivy Wafford Duke Calvert Group, Ltd. Officer
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Administrative Services Co. Officer
Service Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Asset Management Co., Inc. Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Shareholder Services, Inc. Officer
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Distributors, Inc. Officer
Broker-Dealer
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert-Sloan Advisers, LLC Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
First Variable Rate Fund for Officer
Government Income
Calvert Tax-Free Reserves
Calvert Cash Reserves
Calvert Social Investment Fund
The Calvert Fund
Calvert Variable Series, Inc.
Calvert Municipal Fund, Inc.
Calvert World Values Fund, Inc.
Calvert New World Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Daniel K. Hayes Calvert Asset Management Co., Inc. Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
First Variable Rate Fund for Officer
Government Income
Calvert Tax-Free Reserves
Calvert Cash Reserves
Calvert Social Investment Fund
The Calvert Fund
Calvert Variable Series, Inc.
Calvert Municipal Fund, Inc.
Calvert World Values Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Steve Van Order Calvert Asset Management Officer
Company, Inc.
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Annette Krakovitz Calvert Asset Management Officer
Company, Inc.
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
John Nichols Calvert Asset Management Officer
Company, Inc.
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
David Leach Calvert Asset Management Officer
Company, Inc.
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Matthew D. Gelfand Calvert Asset Management Officer
Company, Inc.
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Strategic Investment Management Officer
Investment Advisor
1001 19th Street North
Arlington, Virginia 20009
------------------
Item 27. 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 Calvert Variable Series, Inc.
(b) Positions of Underwriter's Officers and Directors
Name and Principal Position(s) with Position(s) with
Business Address Underwriter Registrant
Barbara J. Krumsiek Director and President 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
Tom Stanton Regional Vice President None
Christine Teske Regional Vice President None
Bill Hairgrove Regional Vice President None
Steve Himber Regional Vice President None
Susan Walker Bender Assistant Secretary Assistant Secretary
Katherine Stoner Assistant Secretary Assistant Secretary
Lisa Crossley Newton Assistant Secretary Assistant Secretary
and Compliance Officer
Ivy Wafford Duke Assistant Secretary Assistant Secretary
(c) Inapplicable.
Item 28. Location of Accounts and Records
Ronald M. Wolfsheimer, Treasurer
and
William M. Tartikoff, Assistant Secretary
4550 Montgomery Avenue, Suite 1000N
Bethesda, Maryland 20814
Item 29. Management Services
Not Applicable
Item 30. Undertakings
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and
the Investment Company Act of 1940, the Registrant certifies that it
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 12th day of November, 1998.
CALVERT SOCIAL INVESTMENT FUND
By:
_________________**________________
Barbara J. Krumsiek
Senior Vice President and Trustee
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933,
this Registration Statement has been signed below by the following
persons in the capacities indicated.
Signature Title Date
__________**____________ President and 11/12/98
D. Wayne Silby Trustee (Principal Executive Officer)
__________**____________ Executive Vice 11/12/98
John G. Guffey, Jr. President and Trustee
__________**____________ Senior Vice President 11/12/98
Barbara J. Krumsiek and Trustee
__________**____________ Principal Accounting 11/12/98
Ronald M. Wolfsheimer Officer
__________**____________ Trustee 11/12/98
Rebecca L. Adamson
__________**____________ Trustee 11/12/98
Richard L. Baird, Jr.
________________________ Trustee 11/12/98
Joy V. Jones
__________**____________ Trustee 11/12/98
Terrence J. Mollner
__________**____________ Trustee 11/12/98
Sydney Amara Morris
__________**____________ Trustee 11/12/98
Charles T. Nason
**
Signed by Susan Bender pursuant to power of attorney, attached hereto.
