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. 29 XX
and/or
REGISTRATION STATEMENT UNDER THE
INVESTMENT COMPANY ACT OF 1940
Amendment No. 29 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
XX Immediately upon filing ___on (date)
pursuant to paragraph (b) pursuant to paragraph (b)
___60 days after filing ___on (date)
pursuant to paragraph (a) pursuant to paragraph (a)
of Rule 485.
<PAGE>
CALVERT SOCIALLY
RESPONSIBLE PROSPECTUS
January 31, 1999
About the Funds
2 Investment objective, strategy, past performance
18 Fees and Expenses
22 Principal Investment Practices and Risks
About Social Investing
26 Socially Responsible Investment Criteria
27 Investment Selection Process
31 High Social Impact Investments
31 Special Equities
About Your Investment
32 Subadvisors and Portfolio Managers
34 Advisory Fees
36 How to Buy Shares
36 Getting Started
36 Choosing a Share Class
38 Calculation of CDSC/Waiver
39 Distribution and Service Fees
40 Account Application
41 Important - How Shares are Priced
41 When Your Account Will be Credited
42 Other Calvert Group Features
(Exchanges, Minimum Account Balance, etc.)
45 Dividends, Capital Gains and Taxes
46 How to Sell Shares
48 Financial Highlights
57 Exhibit A- Reduced Sales Charges (Class A)
59 Exhibit B- Service Fees and
Other Arrangements with Dealers
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FUNDS IN THIS PROSPECTUS
Equity Funds
Calvert Social Investment Fund (CSIF)
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
Calvert Social Investment Fund (CSIF)
CSIF Bond
CSIF Money Market
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These securities have not been approved or disapproved by the Securities and
Exchange Commission (SEC) or any State Securities Commission, nor has the SEC
or any State Securities Commission passed on the accuracy or adequacy of this
prospectus. Any representation to the contrary is a criminal offense.
<PAGE>
CSIF Balanced (Note: Formerly known as CSIF Managed Growth)
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 criteria.
(Note: This objective is subject to shareholder approval expected at a
shareholder meeting in late February 1999. Unless and until shareholders
approve the new objective, the current objective for CSIF Balanced shall
continue in effect, which is CSIF Balanced "seeks to achieve a total return
above the rate of inflation, through an actively managed, diversified
portfolio of common and preferred stocks, bonds and money market instruments
which offer income and capital growth opportunity and which satisfy the
investment and social 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 and some mid-cap stocks. 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.
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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
For the foreign securities held in the Fund, if foreign currency values
go down versus the U.S. dollar
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.
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<PAGE>
The Fund invests 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. Investments are
selected on the basis of their ability to contribute to the dual objectives of
financial soundness and social criteria. See "Investment Selection Process."
CSIF Balanced Performance
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 used for comparison in the table.
Bar Chart with Year-by-Year Total Return
(Class A return at NAV)
1989 18.73% 1994 -5.50%
1990 1.79% 1995 25.85%
1991 17.79% 1996 9.03%
1992 7.46% 1997 18.92%
1993 5.95% 1998 17.49%
Best Quarter (of periods shown) Q4 '98 12.42%
Worst Quarter (of periods shown) Q3 '98 (6.47)%
Average Annual Total Returns (as of 12-31-98)
(with maximum sales charge deducted)
1 year 5 years 10 years
CSIF Balanced: Class A 11.92% 11.53% 10.83%
CSIF Balanced: Class B N/A N/A N/A
CSIF Balanced: Class C 15.24% N/A N/A
S&P 500 Index Monthly Reinvested 28.74% 24.08% 19.20%
Lehman Aggregate Bond Index TR 8.69% 7.27% 9.26%
Lipper Balanced Funds Index 15.09% 13.87% 13.32%
For current yield information call 800-368-2745, or visit Calvert Group's
website at www.calvertgroup.com
<PAGE>
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.
The first step of the investment strategy is to identify those stocks in the
Russell 1000 Index which meet the Fund's social screening criteria. From this
list of stocks, the Subadvisor chooses stocks that closely mirror the Index in
terms of various factors such as industry weightings, capitalization, and
yield. Even though certain industries may be eliminated from the Fund by the
screens, the factor model permits mathematical substitutes which the
Subadvisor expects to mimic the return characteristics of the missing
industries and stocks.
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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 or the Russell 1000 Index 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.
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<PAGE>
The final step in the process is to apply the Subadvisor's proprietary
valuation method which attempts to identify the stocks which have the greatest
potential for superior performance. Each security identified for potential
investment is ranked according to two separate measures: value and momentum of
market sentiment. These two measures combine to create a single composite
score of each stock's attractiveness. The Fund is constructed from securities
that meet its social criteria, weighted through a mathematical process that
seeks to reduce risk vis-a-vis the Russell 1000 Index. The Subadvisor expects
to hold between 100 and 150 stocks.
The Russell 1000 Index measures the performance of the 1,000 largest U.S.
companies based on total market capitalization. The Index is adjusted, or
reconstituted, annually. As of the latest reconstitution, the average market
capitalization of the Russell 1000 was approximately $7.6 billion.
Tracking the Index
The Subadvisor expects a tracking error over time of no more than 2.5%,
although there can be no guarantee such results will be achieved. The Fund's
ability to track the Index will be monitored by analyzing returns to ensure
that the returns are reasonably consistent with Index returns. 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 Fund associated with that factor may be adjusted to
ensure a higher degree of correlation to the Index.
The Fund invests 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. Investments are
selected on the basis of their ability to contribute to the dual objectives of
financial soundness and social criteria. See "Investment Selection Process."
(No performance results are shown for CSIF Managed Index since its inception
was 4/15/98.)
<PAGE>
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).
The Subadvisor looks for growing companies with a history of steady earnings
growth. Companies are selected based on the Subadvisor's opinion that the
company has the ability to sustain growth through growing profitability and
that the stock is favorably priced with respect to those growth expectations.
The Fund invests 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. Investments are
selected on the basis of their ability to contribute to the dual objectives of
financial soundness and social criteria. See "Investment Selection Process."
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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.
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CSIF Equity Performance
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 used for comparison in the table.
Bar Chart with Year-by-Year Total Return
(Class A return at NAV)
1989 27.45% 1994 -12.06%
1990 -4.87% 1995 20.29%
1991 21.93% 1996 21.68%
1992 8.37% 1997 19.33%
1993 2.13% 1998 10.89%
Best Quarter (of periods shown) Q1 '98 11.73%
Worst Quarter (of periods shown) Q3 '98 (17.56)%
Average Annual Total Returns (as of 12-31-98)
(with maximum sales charge deducted)
1 year 5 years 10 years
CSIF Equity: Class A 5.62% 10.17% 10.25%
CSIF Equity: Class B N/A N/A N/A
CSIF Equity: Class C 8.76% N/A N/A
S&P 500 Index Monthly Reinvested 28.74% 24.08% 19.20%
Lipper Growth Funds Index 25.69% 19.82% 17.21%
<PAGE>
Calvert Capital Accumulation
Advisor Calvert Asset Management Company, Inc.
Subadvisor: Brown Capital Management, Inc.
Objective
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. Most companies in the
Index have a capitalization of $500 million to $10 billion. Stocks chosen for
the Fund combine growth and value characteristics or offer the opportunity to
buy growth at a reasonable price.
The Subadvisor favors companies which have an above market average prospective
growth rate, but sell at below market average valuations. The Subadvisor
evaluates each stock in terms of its growth potential, the return for risk
free investments, and the risk and reward potential for the company to
determine a reasonable price for the stock.
The Fund invests 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. Investments are
selected on the basis of their ability to contribute to the dual objectives of
financial soundness and social criteria. See "Investment Selection Process."
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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.
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<PAGE>
Capital Accumulation Performance
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 Fund's 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 used for comparison in the table.
Bar Chart with Year-by-Year Total Return
(Class A return at NAV)
1989 N/A 1994 N/A
1990 N/A 1995 36.75%
1991 N/A 1996 9.37%
1992 N/A 1997 22.02%
1993 N/A 1998 29.35%
Best Quarter (of periods shown) Q4 '98 25.03%
Worst Quarter (of periods shown) Q3 '98 (14.00)%
Average Annual Total Returns (as of 12-31-98)
(with maximum sales charge deducted)
1 year 5 years 10 years
Capital Accumulation: Class A1 23.19% N/A N/A
Capital Accumulation: Class B N/A N/A N/A
Capital Accumulation: Class C 27.34% N/A N/A
S&P Mid-Cap 400 Index 18.25% N/A N/A
Lipper Mid-Cap Funds Index 13.92% N/A N/A
1 Since inception "A" (10/31/94) 22.09; S&P Mid Cap 400 Index 22.77; and
Lipper Mid-Cap Funds Index 18.36.
<PAGE>
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 invests primarily in the common stocks of mid- to large-cap companies
using a value approach. The Fund identifies those countries with markets and
economies that it believes currently provide the most favorable climate for
investing. The Subadvisor selects countries based on a "20 questions" model
which uses macro-and micro-economic inputs to rank the attractiveness of
markets in various countries. Within each country, the Subadvisor uses
valuation techniques that have been shown to best determine value within that
market. In some countries, the valuation process may favor the comparison of
price-to-cash-flow while in other countries, price-to-sales or price-to-book
may be more useful in determining which stocks are undervalued.
The Fund invests primarily in more developed economies and markets. No more
than 5% of Fund assets are invested in the U.S. (excluding High Social Impact
and Special Equities investments).
The Fund invests 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. Investments are
selected on the basis of their ability to contribute to the dual objectives of
financial soundness and social criteria. See "Investment Selection Process."
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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 go down (including those outside the U.S.)
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.
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<PAGE>
CWVF International Equity Performance
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 used for comparison in the table.
Bar Chart with Year-by-Year Total Return
(Class A return at NAV)
1989 N/A 1994 -2.66%
1990 N/A 1995 11.81%
1991 N/A 1996 12.02%
1992 N/A 1997 6.57%
1993 25.78% 1998 16.10%
Best Quarter (of periods shown) Q4 '98 17.97%
Worst Quarter (of periods shown) Q3 '98 (14.82)%
Average Annual Total Returns (as of 12-31-98)
(with maximum sales charge deducted)
1 year 5 years 10 years
CWVF International Equity: Class A1 10.59% 7.52% N/A
CWVF International Equity: Class B N/A N/A N/A
CWVF International Equity: Class C 13.92% N/A N/A
MSCI EAFE Index GD 20.33% 9.50% N/A
Lipper International Funds Index 12.66% 8.59% N/A
1 Inception "A" (7/31/92) 9.22%; MSCI EAFE Index GD 12.25%; and Lipper
International Funds Index 11.75%. The month end date of 7/31/92 is used for
comparison purposes only, actual fund inception is 7/2/92.
<PAGE>
Calvert New Vision Small Cap
Advisor Calvert Asset Management Company, Inc.
Subadvisor: Awad Asset Management, Inc.
Objective
New Vision Small Cap seeks to provide long-term capital appreciation by
investing primarily in small-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
At least 65% of the Fund's assets will be invested 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.
The Fund invests 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. Investments are
selected on the basis of their ability to contribute to the dual objectives of
financial soundness and social criteria. See "Investment Selection Process."
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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.
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<PAGE>
New Vision Small Cap Performance
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 used for comparison in the table.
Bar Chart with Year-by-Year Total Return
(Class A return at NAV)
1989 N/A 1994 N/A
1990 N/A 1995 N/A
1991 N/A 1996 N/A
1992 N/A 1997 N/A
1993 N/A 1998 -9.43%
Best Quarter (of periods shown) Q2 '97 15.51%
Worst Quarter (of periods shown) Q3 '98 (21.82)%
Average Annual Total Returns (as of 12-31-98)
(with maximum sales charge deducted)
1 year 5 years 10 years
New Vision Small Cap: Class A1 -13.75% N/A N/A
New Vision Small Cap: Class B N/A N/A N/A
New Vision Small Cap: Class C -11.20% N/A N/A
Russell 2000 Index TR -2.55% N/A N/A
Lipper Small-Cap Funds Index -0.85% N/A N/A
1 From inception (1/31/97) -13.73%; Russell 2000 Index TR 8.48%; Lipper
Small-Cap Funds Index 5.83%.
<PAGE>
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.
The Fund invests 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. Investments are
selected on the basis of their ability to contribute to the dual objectives of
financial soundness and social criteria. See "Investment Selection Process."
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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
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 bond may have greater impact on the Fund. (The Fund's
non-diversified status is subject to shareholder approval, expected at a
shareholder meeting in late February 1999. Unless and until the
shareholders approve the change, the fund will be diversified.)
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.
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<PAGE>
CSIF Bond Performance
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 used for comparison in the table.
Bar Chart with Year-by-Year Total Return
(Class A return at NAV)
1989 13.56% 1994 -5.80%
1990 8.30% 1995 17.39%
1991 15.75% 1996 2.92%
1992 6.72% 1997 9.87%
1993 11.64% 1998 6.13%
Best Quarter (of periods shown) Q3 '91 5.99%
Worst Quarter (of periods shown) Q1 '94 (3.57)%
Average Annual Total Returns (as of 12-31-98)
(with maximum sales charge deducted)
1 year 5 years 10 years
CSIF Bond: Class A 2.16% 5.02% 8.04%
CSIF Bond: Class B N/A N/A N/A
CSIF Bond: Class C N/A N/A N/A
Lehman Aggregate Bond Index TR 8.69% 7.27% 9.26%
Lipper Corporate Debt Funds
A Rated Index 7.31% 6.61% 8.85%
<PAGE>
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.
The Fund invests 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. Investments are
selected on the basis of their ability to contribute to the dual objectives of
financial soundness and social criteria. See "Investment Selection Process."
- --------------------------------------------------------------------------------
PRINCIPAL RISKS
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.
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.
- --------------------------------------------------------------------------------
<PAGE>
CSIF Money Market Performance
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 with Year-by-Year Total Return
1989 8.80% 1994 3.64%
1990 7.69% 1995 5.25%
1991 5.67% 1996 4.83%
1992 3.27% 1997 4.95%
1993 2.54% 1998 5.14%
Best Quarter (of periods shown) Q2 '89 2.26%
Worst Quarter (of periods shown) Q2 '93 0.59%
Average Annual Total Returns (as of 12-31-98)
1 year 5 years 10 years
CSIF Money Market 4.93% 4.72% 5.14%
Lipper Money Market Funds Index 5.10% 4.90% 5.32%
For current yield information call 800-368-2745, or visit Calvert Group's
website at www.calvertgroup.com
<PAGE>
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 CSIF CSIF CSIF Capital
Shareholder fees Balanced9 Mn. Indx1 Equity9 Accum.9
Maximum sales charge (load)
imposed on purchases
(as a percentage of offering price) 4.75 4.75 4.75 4.75
Maximum deferred sales charge (load) None2 None2 None2 None2
(as a percentage of purchase or
redemption proceeds, whichever is lower)
Maximum account fee 3
Annual fund operating expenses
Management fees .70 .75 .70 .90
Distribution and service (12b-1) fees .24 .25 .23 .35
Other expenses .26 .86 .37 .51
Total annual fund operating expenses 1.20 1.86 1.30 1.76
Fee waiver and/or expense reimbursement5 - (.61) - -
Net Expenses 1.20 1.25 1.30 1.76
CLASS A CWVF New CSIF CSIF
Shareholder fees Int Eq. Vision10 Bond Mon. Mkt.
Maximum sales charge (load)
imposed on purchases
(as a percentage of offering price) 4.75 4.75 3.75 None
Maximum deferred sales charge (load) None2 None2 None2 None
(as a percentage of purchase or
redemption proceeds, whichever is lower)
Maximum account fee 4
Annual fund operating expenses
Management fees 1.10 1.00 .55 .50
Distribution and service (12b-1) fees .25 .25 .20 .00
Other expenses .51 .65 .38 .44
Total annual fund operating expenses 1.86 1.90 1.13 .94
Fee waiver and/or expense reimbursement5 - - - -
Net Expenses 1.86 1.90 1.13 .89
CLASS B CSIF CSIF CSIF Capital
Shareholder fees Balanced9 Mn. Indx1 Equity9 Accum.9
Maximum sales charge (load)
imposed on purchases
(as a percentage of offering price) None None None None
Maximum deferred sales charge (load) 5%6 5%6 5%6 5%6
(as a percentage of purchase or
redemption proceeds, whichever is lower)
Maximum account fee 3
Annual fund operating expenses
Management fees .70 .75 .70 .90
Distribution and service (12b-1) fees 1.00 1.00 1.00 1.00
Other expenses 1.96 3.86 2.02 1.52
Total annual fund operating expenses 3.66 5.61 3.72 3.42
Fee waiver and/or expense reimbursement5 (1.16) (3.11) (1.16) (.26)
Net Expenses 2.50 2.50 2.56 3.16
CLASS B CWVF New CSIF CSIF
Shareholder fees Int Eq. Vision10 Bond Mon. Mkt.
Maximum sales charge (load)
imposed on purchases
(as a percentage of offering price) None None None N/A
Maximum deferred sales charge (load) 5%6 5%6 4%7 N/A
(as a percentage of purchase or
redemption proceeds, whichever is lower)
Maximum account fee
Annual fund operating expenses
Management fees 1.10 1.00 .55 N/A
Distribution and service (12b-1) fees 1.00 1.00 1.00 N/A
Other expenses 4.01 5.40 6.54 N/A
Total annual fund operating expenses 6.11 7.40 8.09 N/A
Fee waiver and/or expense reimbursement5 (2.95) (4.39) (5.59) N/A
Net Expenses 3.16 3.01 2.50 N/A
<PAGE>
CLASS C CSIF CSIF CSIF Capital
Shareholder fees Balanced9 Mn. Indx1 Equity9 Accum.9
Maximum sales charge (load)
imposed on purchases
(as a percentage of offering price) None None None None
Maximum deferred sales charge (load) 1%8 1%8 1%8 1%8
(as a percentage of purchase or
redemption proceeds, whichever is lower)
Maximum account fee 3
Annual fund operating expenses
Management fees .70 .75 .70 .90
Distribution and service (12b-1) fees 1.00 1.00 1.00 1.00
Other expenses .62 3.07 .62 .75
Total annual fund operating expenses 2.32 4.82 2.32 2.65
Fee waiver and/or expense reimbursement5 - (2.32) - -
Net Expenses 2.32 2.50 2.32 2.65
CLASS C CWVF New CSIF CSIF
Shareholder fees Int Eq. Vision10 Bond Mon. Mkt.
Maximum sales charge (load)
imposed on purchases
(as a percentage of offering price) None None None N/A
Maximum deferred sales charge (load) 1%8 1%8 1%8 N/A
(as a percentage of purchase or
redemption proceeds, whichever is lower)
Maximum account fee
Annual fund operating expenses
Management fees 1.10 1.00 .55 N/A
Distribution and service (12b-1) fees 1.00 1.00 1.00 N/A
Other expenses .81 .93 5.36 N/A
Total annual fund operating expenses 2.91 2.93 6.91 N/A
Fee waiver and/or expense reimbursement5 - - (4.41) N/A
Net Expenses 2.91 2.93 2.50 N/A
Explanation of Fees and Expenses Table
1 Expenses are based on estimates for the current fiscal year.
2 Purchases of Class A shares for accounts with $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)
3 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.
4 For each account with a balance of less than $1000, the Fund charges a
monthly account maintenance fee of $3.00.
5 CAMCO has agreed to waive fees and or reimburse expenses (net of any expense
offset arrangements) for certain of the Funds through December 31, 1999: CSIF
Money Market, CSIF Balanced (Class B and I), CSIF Equity (Class B and I) CSIF
Bond (Class B, C, and I), CSIF Managed Index (Class A, B, C, and I), CWVF
International Equity (Class B and I) Capital Accumulation (Class B and I), and
New Vision (Class B and I). The contractual expense cap is shown as "Net
Expenses", this is the maximum amount that may be charged to the Funds for
this period.
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"
9 The Management fees for CSIF Balanced, CSIF Equity, and Calvert Capital
Accumulation have been restated to reflect changes expected to be approved by
shareholders in early 1999. If shareholders do not approve the changes to the
fees, the Management
<PAGE>
fees and Total annual Fund operating expenses, and Net Expenses, if
applicable, would be 0.07% lower for CSIF Balanced, 0.14% lower for CSIF
Equity, and 0.01% lower for Capital Accumulation. See "About Calvert Group -
Advisory Fees".
10 Expenses for New Vision Small Cap have been restated to reflect expenses
expected to be incurred in 1999.
Annual Fund Operating Expenses
Expenses are based on expenses for the Fund's most recent fiscal year, unless
otherwise indicated. 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.
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 Class B Class B Class C Class C
Years Investment (with (no (with (no
is Held Class A redemp.) redemp.) redemp.) redemp.)
CSIF Balanced
1 591 753 253 335 235
3 838 1,414 1,014 724 724
5 1,103 1,994 1,794 1,240 1,240
10 1,860 3,286 3,286 2,656 2,656
CSIF Managed Index
1 596 753 253 353 253
3 976 1,796 1,396 1,243 1,243
5 1,379 2,725 2,525 2,236 2,236
10 2,504 4,570 4,570 4,736 4,736
<PAGE>
CSIF Equity
1 601 759 259 335 235
3 868 1,431 1,031 724 724
5 1,154 2,023 1,823 1,240 1,240
10 1,968 3,351 3,351 2,656 2,656
Capital Accumulation
1 645 819 319 368 268
3 1,003 1,427 1,027 823 823
5 1,384 1,957 1,757 1,405 1,405
10 2,450 3,309 3,309 2,983 2,983
CWVF International Equity
1 655 819 319 394 294
3 1,032 1,950 1,550 901 901
5 1,433 2,953 2,753 1,533 1,533
10 2,551 4,870 4,870 3,233 3,233
Calvert New Vision Small Cap
1 659 804 304 396 296
3 1,044 2,177 1,777 907 907
5 1,453 3,381 3,181 1,543 1,543
10 2,592 5,500 5,500 3,252 3,252
CSIF Bond
1 486 653 253 353 253
3 721 2,061 1,861 1,643 1,643
5 974 3,371 3,371 2,980 2,980
10 1,698 4,518 4,518 6,105 6,105
CSIF Money Market
1 91 N/A N/A N/A N/A
3 295 N/A N/A N/A N/A
5 515 N/A N/A N/A N/A
10 1,150 N/A N/A N/A N/A
<PAGE>
PRINCIPAL INVESTMENT PRACTICES AND RISKS
The most concise description of each Fund's principal investment strategies
and associated risks 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 the investments and techniques,
summarized in the risk-return summary along with certain additional investment
techniques and 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.
Key to Table
@ 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
Column 1 = Explanation of Practice
Column 2 = CSIF Balanced
Column 3 = CSIF Managed Index
Column 4 = CSIF Equity
Column 5 = Capital Accumulation
Column 2 = CWVF International Equity
Column 7 = Calvert New Vision Small Cap
Column 8 = CSIF Bond
Column 9 = CSIF Money Market
Investment Practices
- -------------------------------------------------------------------------------
Column 1 2 3 4 5 6 7 8 9
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Active Trading @ 0 0 0 0 0 @ NA
Strategy/Turnover
involves selling a
security soon after
purchase. An 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. 0 0 0 0 0 0 0 NA
During adverse (35T) (35T)
market, economic or
political conditions,
the Fund may depart
from its principal
investment strategies
by increasing its
investment in U.S.
government securities
and other short-term
interest-bearing
securities. During
times of any
temporary defensive
positions, a Fund may
not be able to
achieve its
investment objective
Risks: Opportunity.
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Conventional
Securities 25N -- 25N @ 25N 15T1 25N NA
Foreign Securities.
Securities issued by
companies located
outside the U.S.
and/or traded
primarily on a
foreign exchange.
Risks: Market,
Currency,
Transaction,
Liquidity,
Information and
Political.
- -------------------------------------------------------------------------------
1 New Vision may invest only in American Depositary Receipts (ADRs) -
dollar-denominated receipts representing shares of a foreign issuer. ADRs are
traded on U.S. exchanges. See the SAI.
<PAGE>
- -------------------------------------------------------------------------------
Column 1 2 3 4 5 6 7 8 9
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
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 @ Na 0 0 0 0 @ NA
BBB/Baa or higher or
comparable unrated
bonds. Risks:
Interest Rate, Market
and Credit.
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Below-investment 20N3 NA 20N3 10N3 5N3 5N3 20N3 NA
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 @ NA 0 0 0 0 @ @2
securities. Bonds
that have not 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 15N 15N 15N 15N 15N 15N 15N 10N
cannot 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. @ NA 0 0 0 0 @ 05
Securities are 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.
- -------------------------------------------------------------------------------
2 Must be money-market eligible under SEC Rule 2a-7.
3 Excludes any high social impact investments.
4 Must be money-market eligible under SEC Rule 2a-7.
5 Must be money-market eligible under SEC Rule 2a-7.
<PAGE>
- -------------------------------------------------------------------------------
Column 1 2 3 4 5 6 7 8 9
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Unleveraged
derivative
securities, (con't.)
Participation 0 NA 0 0 0 0 0 06
interests. Securities
representing an
interest in another
security or in bank
loans. Risks: Credit,
Interest Rate and
Liquidity.
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Leveraged derivative
instruments Currency
contracts. Contracts 0 NA 0 5T 5T - - 0 NA
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. 5T 5T 5T 5T 5T 5T 5T NA
Contracts 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. 0 0 0 0 0 0 0 NA
Agreement to buy or 5N 5N 5N 5N 5N 5N 5N
sell a specific
amount of a commodity
or financial
instrument at a
particular price on a
specific future date.
Risks: Interest Rate,
Currency, Market,
Leverage,
Correlation,
Liquidity and
Opportunity.
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Structured securities
Indexed and/or
leveraged 0 NA NA NA 0 NA 0 NA
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.
- -------------------------------------------------------------------------------
6 Must be money-market eligible under SEC Rule 2a-7.
<PAGE>
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
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, sells or holds 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 or the market 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.
<PAGE>
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 unanticipated prepayments may occur, reducing the value of a
mortgage-backed security. The Fund must then reinvest those assets at the
current, market rate which may be lower.
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, Calvert Social Investment Fund (CSIF) and Calvert World
Values International Equity Fund (CWVF) seek to invest in companies that
exhibit positive accomplishments with respect to
<PAGE>
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 Fund 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.
<PAGE>
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.
<PAGE>
Calvert 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
1 CWVF 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 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.
<PAGE>
High Social Impact Investments - CSIF Balanced, Bond and Equity, Calvert World
Values International Equity, Capital Accumulation and New Vision Small Cap
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 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, 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. High Social Impact Investments are valued
under the direction and control of the Fund's Board.
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
and educational 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 and
institutional investors and then invest these assets directly in non-profit or
not-for-profit community development organizations and community development
banks 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.
<PAGE>
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 $6 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. 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. 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 12 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
<PAGE>
in the development of domestic and international index funds, and has managed
CSIF Managed Index since its inception.
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, L.L.C.; Two Midtown Plaza, Suite 1600,
1360 Peachtree Street, Atlanta, GA 30309 has managed CSIF Equity since
September 1998.
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 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, Inc. (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 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.
<PAGE>
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
CSIF Balanced 0.62% 2, 5
CSIF Managed Index 0.60% 3, 4
CSIF Equity 0.56% 2, 5
CSIF Bond 0.55% 1, 2
CSIF Money Market 0.50% 2
CWVF International Equity 1.00% 2
Capital Accumulation 0.79% 2, 5
New Vision Small Cap 0.90% 2
1 CAMCO waived part of its advisory fee for CSIF Bond. The full contractual
rate CSIF Bond was obligated to pay CAMCO for fiscal year 1998 was 0.65%.
2 These advisory agreements are proposed to be changed by a vote of
shareholders in February 1999. If approved, the new advisory fee would be:
CSIF Balanced, 0.425%; CSIF Equity, 0.50%; CSIF Bond, 0.35%; CSIF Money
Market, 0.30%; CWVF International Equity, 0.75%; Capital Accumulation, 0.65%;
and New Vision Small Cap, 0.75%. The proposed lower advisory fee for each
Fund, when added to the proposed new administrative services fee, would equal
the current advisory fee (excluding the effect of any performance adjustment -
see note 5 below)
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 under which CAMCO may elect to
recapture from the Fund in a later year any fees CAMCO waives or expenses it
assumes, subject to certain limitations.
5 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). CSIF Equity has a performance adjustment which could cause the fee to be
as high as 0.90% or as low as 0.50% depending on its performance relative to
the S&P 500 Index. 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. These performance
adjustments are proposed to be eliminated by a vote of shareholders in
February, 1999.
<PAGE>
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
<PAGE>
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, Education 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 Sales
Charge Charge for 6 years (4 Charge for 1 year
years for CSIF Bond)
For all investors, For investors who plan For investors who are
particularly those to hold the shares at investing for at least
investing a substantial least 6 years (4 for one year, but less than
amount who plan to hold CSIF Bond). The six years. The expenses
the shares for a long expenses of this class of this Class are
period of time. are higher than Class higher than Class A,
A, because of the 12b-1 because of the 12b-1
fee. fee.
<PAGE>
Sales charge on each No sales charge on each No sales charge on each
purchase of 4.75% or less purchase, but if you purchase, but if you
(3.75% or less for CSIF sell your shares within sell shares within 1
Bond), depending on the 6 years, you will pay a year, then you will pay
amount you invest. deferred sales charge a deferred sales charge
of 5% or less on shares of 1% at that time.
you sell (4% or less on
shares of CSIF Bond 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 to annual 12b-1 fee of annual 12b-1 fee of
0.35%. 1.00%. 1.00%.
Class A shares have lower Your shares will Class C shares have
annual expenses due to a automatically convert higher annual expenses
lower 12b-1 fee. to Class A shares after than Class A and there
8 years (6 years for is no automatic
CSIF Bond), reducing conversion to Class A.
your future annual
expenses.
Purchases of Class A If you are investing If you are investing
shares at NAV for more than $250,000, you more than $100,000, you
accounts with $1,000,000 should consider should invest in Class
or more will be subject investing in Class A or A.
to a 1.0% deferred sales C.
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 $50,000,4 then the sales
charge is reduced to 3.75%.
CSIF Balanced, CSIF Managed Index, CSIF Equity, Capital Accumulation, CWVF
International Equity, and Calvert New Vision Small Cap:
Your investment in Sales Charge % % of Amt.
Class A shares of offering price Invested
Less than $50,000 4.75% 4.99%
$50,000 but not less than $100,000 3.75% 3.90%
$100,000 but not less than $250,000 2.75% 2.83%
$250,000 but not less than $500,000 1.75% 1.78%
$500,000 but not less than $1,000,000 1.00% 1.01%
$1,000,000 and over None* None*
CSIF Bond
Your investment in Sales Charge % % of Amt.
Class A shares of offering price Invested
Less than $50,000 3.75% 3.90%
$50,000 but not less than $100,000 3.00% 3.09%
$100,000 but not less than $250,000 2.25% 2.30%
$250,000 but not less than $500,000 1.75% 1.78%
$500,000 but not less than $1,000,000 1.00% 1.01%
$1,000,000 and over None* None*
4 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.
* Purchases of Class A shares at NAV for accounts with $1,000,000 or more are
subject to a one year CDSC of 1.00%. See the "Calculation of Contingent
Deferred Sales Charge and Waiver of Sales Charges."
<PAGE>
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.
- --------------------------- ---------------------------------- -----------
CSIF Balanced
CSIF Equity
CSIF Managed Index
CWVF International Equity
Capital Accumulation CSIF Bond
Time Since Purchase New Vision Small Cap
- --------------------------- ---------------------------------- -----------
---------------------------------- -----------
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:
<PAGE>
Redemption upon the death or disability of the shareholder, plan
participant, or beneficiary.1
Minimum required distributions from retirement plan accounts for
shareholders 70 1/2 and older.2
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.3
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.
1 "Disability" means a total disability as evidenced by a determination by the
federal Social Security Administration.
2 The maximum amount subject to this waiver is based only upon the
shareholder's Calvert Group retirement accounts.
3 This systematic withdrawal plan requires a minimum account balance of
$50,000 to be established.
<PAGE>
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%/ 0.25% 1.00%/1.00% 1.00%/1.00%
CWVF International Equity 0.35%/0.25% 1.00%/1.00% 1.00%/1.00%
Capital Accumulation 0.35%/0.35% 1.00%/1.00% 1.00%/1.00%
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
Capital Accumulation $2,000
New Vision Small Cap $2,000
<PAGE>
Please make your check payable
to the Fund and mail it to:
New Accounts Subsequent Investments
(include application) (include investment slip)
Calvert Group Calvert Group
P.O. Box 419544 P.O. Box 419739
Kansas, City MO Kansas City, MO
64141-6544 64141-6739
By Registered, Calvert Group
Certified, or c/o NFDS,
Overnight Mail 330 West 9th St.,
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. Please note that there are some federal holidays, however, such
as Columbus Day and Veterans' Day, when the NYSE is open and the Fund is open
but purchases cannot be made due to the closure of the banking system.
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 in good order. All of your purchases must be made in US dollars and
checks must be drawn on US
<PAGE>
banks. No cash will be accepted. No credit card or credit loan checks 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
<PAGE>
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.
Calvert Money Controller transactions returned for insufficient funds will
incur A $25 charge.
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.
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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. Investors may be charged a fee if they effect transactions in Fund
shares through a broker or agent.
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 may be charged to your
account (CSIF Money Market, $3.00/month, and CSIF Managed Index, $1.00/month).
If the balance in your account falls below the minimum during a month, your
account may be closed and the proceeds mailed to the address of record. You
will receive notice that your account is below the minimum, and will be closed
or charged if the balance is not brought up to the required minimum amount
within 30 days.
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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
Capital Accumulation Paid annually
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 returns the check as undeliverable, 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.
<PAGE>
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, redemptions proceeds will not be sent 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
<PAGE>
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. Please note that there are some federal holidays, however, such as
Columbus Day and Veterans' Day, when the NYSE is open and the Fund is open but
redemptions cannot be made due to the closure of the banking system.
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
<PAGE>
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.
<PAGE>
Financial Highlights
CSIF Balanced
Years Ended September 30,
Class A Shares 1998 1997 1996
Net asset value, beginning $34.88 $31.35 $32.81
Income from investment operations
Net investment income .77 .83 .78
Net realized and unrealized
gain (loss) .92 5.61 2.28
Total from investment
operations 1.69 6.44 3.06
Distributions from
Net investment income (.76) (.81) (.77)
Net realized gain (3.36) (2.10) (3.75)
Total distributions (4.12) (2.91) (4.52)
Total increase (decrease) in
net asset value (2.43) 3.53 (1.46)
Net asset value, ending $32.45 $34.88 $31.35
Total return* 5.50% 21.94% 10.27%
Ratios to average net assets:
Net investment income 2.27% 2.57% 2.58%
Total expenses + 1.13% 1.14% 1.28%
Net expenses 1.11% 1.12% 1.26%
Expenses reimbursed - - .01%
Portfolio turnover 185% 215% 111%
Net assets, ending (in thousands) $673,907 $675,306 $594,482
Number of shares outstanding,
ending (in thousands) 20,768 19,362 18,964
Years Ended September 30,
Class A Shares 1995 1994
Net asset value, beginning $28.77 $30.85
Income from investment operations
Net investment income .87 .93
Net realized and unrealized
gain (loss) 4.25 (1.83)
Total from investment operations 5.12 (.90)
Distributions from
Net investment income (.87) (.95)
Net realized gain (.21) (.23)
Total distributions (1.08) (1.18)
Total increase (decrease) in
net asset value 4.04 (2.08)
Net asset value, ending $32.81 $28.77
Total return* 18.21% (2.95%)
Ratios to average net assets:
Net investment income 2.89% 3.14%
Total expenses + 1.28% N/A
Net expenses 1.26% 1.24%
Expenses reimbursed .02% -
Portfolio turnover 114% 34%
Net assets, ending (in thousands) $560,981 $512,027
Number of shares outstanding,
ending (in thousands) 17,099 17,800
Financial Highlights
CSIF Balanced
Period Ended
September 30, 1998 #
Class B Shares
Net asset value, beginning $34.37
Income from investment operations
Net investment income 0.15
Net realized and unrealized gain (loss) (1.90)
Total from investment operations (1.75)
Distributions from
Net investment income (0.24)
Net realized gain -
Total distributions (0.24)
Total increase (decrease) in net asset value (1.99)
Net asset value, ending $32.38
Total return* (5.10%)
Ratios to average net assets:
Net investment income 1.22%(a)
Total expenses + 2.43%(a)
Net expenses 2.41%(a)
Expenses reimbursed 1.16%(a)
Portfolio turnover 185%
Net assets, ending (in thousands) $2,540
Number of shares outstanding,
ending (in thousands) 78
Financial Highlights
CSIF Balanced
Years Ended September 30,
Class C Shares 1998 1997 1996
Net asset value, beginning $34.52 $31.05 $32.60
Income from investment operations
Net investment income .41 .47 .46
Net realized and unrealized
gain (loss) .89 5.54 2.17
Total from investment
operations 1.30 6.01 2.63
Distributions from
Net investment income (.41) (.44) (.43)
Net realized gain (3.36) (2.10) (3.75)
Total distributions (3.77) (2.54) (4.18)
Total increase (decrease)
in net asset value (2.47) 3.47 (1.55)
Net asset value, ending $32.05 $34.52 $31.05
Total return* 4.35% 20.56% 8.85%
Ratios to average net assets:
Net investment income 1.16% 1.42% 1.34%
Total expenses + 2.25% 2.29% 2.52%
Net expenses 2.23% 2.27% 2.50%
Expenses reimbursed - - .14%
Portfolio turnover 185% 215% 111%
Net assets, ending (in thousands) $11,483 $8,898 $6,715
Number of shares outstanding,
ending (in thousands) 358 258 216
Years Ended September 30,
Class C Shares 1995 1994^
Net asset value, beginning $28.65 $30.43
Income from investment operations
Net investment income .54 .51
Net realized and unrealized gain (loss) 4.20 (1.66)
Total from investment operations 4.74 (1.15)
Distributions from
Net investment income (.58) (.63)
Net realized gain (.21) -
Total distributions (.79) (.63)
Total increase (decrease) in net asset value 3.95 (1.78)
Net asset value, ending $32.60 $28.65
Total return* 16.85% (3.30%)
Ratios to average net assets:
Net investment income 1.61% 1.83%(a)
Total expenses + 2.51% N/A
Net expenses 2.50% 2.47%(a)
Expenses reimbursed .42% 1.46%(a)
Portfolio turnover 114% 34%
Net assets, ending (in thousands) $4,065 $1,893
Number of shares outstanding,
ending (in thousands) 125 66
Footnotes for CSIF Balanced Financial Highlights
(a) = Annualized
+ Effective September 30, 1995, this ratio reflects total expenses before
reduction for fees paid indirectly; such reductions are included in the ratio
of net expenses.
* Total return is not annualized for periods less than one year and does not
reflect deduction of any front-end or deferred sales charge.
^ From March 1, 1994 inception
# From April 1, 1998 inception
<PAGE>
Financial Highlights
Managed Index Portfolio
Class A Class B
Shares Shares
Periods Ended September 30,
1998 ## 1998 ##
Net asset value, beginning $15.00 $15.00
Income from investment operations
Net investment income .02 (.03)
Net realized and unrealized gain (loss) (1.48) (1.49)
Total from investment operations (1.46) (1.52)
Total increase (decrease) in net asset value (1.46) (1.52)
Net asset value, ending $13.54 $13.48
Total return* (9.73%) (10.13%)
Ratios to average net assets:
Net investment income .42%(a) (.98%)(a)
Total expenses + 1.01%(a) 2.56%(a)
Net expenses .95%(a) 2.50%(a)
Expense reimbursed .85%(a) 3.05%(a)
Portfolio turnover 27% 27%
Net assets, ending (in thousands) $4,401 $975
Number of shares outstanding,
ending (in thousands) 325 72
Class C
Shares
Period Ended
September 30,
1998 ^^
Net asset value, beginning $14.52
Income from investment operations
Net investment income (.02)
Net realized and unrealized gain (loss) (.98)
Total from investment operations (1.00)
Total increase (decrease) in net asset value (1.00)
Net asset value, ending $13.52
Total return* (6.89%)
Ratios to average net assets:
Net investment income (.96%)(a)
Total expenses + 2.56%(a)
Net expenses 2.50%(a)
Expenses reimbursed 2.26%(a)
Portfolio turnover 27%
Net assets, ending (in thousands) $397
Number of shares outstanding,
ending (in thousands) 29
Footnotes for CSIF Managed Index Financial Highlights
(a) = Annualized
+ Effective September 30, 1995, this ratio reflects total expenses before
reduction for fees paid indirectly; such reductions are included in the ratio
of net expenses.
* Total return is not annualized for periods less than one year and does not
reflect deduction of any front-end or deferred sales charge.
^^ From June 1, 1998 inception
## From April 15, 1998 inception
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Financial Highlights
Equity Portfolio
Years Ended September 30,
Class A Shares 1998 1997 1996
Net asset value, beginning $27.77 $22.54 $21.12
Income from investment operations
Net investment income (.04) - .03
Net realized and unrealized
gain (loss) (4.01) 6.73 3.26
Total from investment operations (4.05) 6.73 3.29
Distributions from
Net investment income - (.01) (.06)
Net realized gain (3.36) (1.49) (1.81)
Total distributions (3.36) (1.50) (1.87)
Total increase (decrease) in net
asset value (7.41) $5.23 1.42
Net asset value, ending 20.36 $27.77 $22.54
Total return* 5.70%) 31.34% 16.62%
Ratios to average net assets:
Net investment income (.14%) .03% .15%
Total expenses + 1.16% 1.21% 1.29%
Net expenses 1.07% 1.20% 1.27%
Portfolio turnover 110% 93% 118%
Net assets, ending (in thousands) $128,683 $147,002 $101,344
Number of shares outstanding,
ending (in thousands) 6,320 5,294 4,496
Years Ended September 30,
Class A Shares 1995 1994
Net asset value, beginning $20.13 $21.43
Income from investment operations
Net investment income
.06 .13
Net realized and unrealized gain (loss) 2.22 (1.04)
Total from investment operations 2.28 (.91)
Distributions from
Net investment income (.04) (.28)
Net realized gain (1.25) (.11)
Total distributions (1.29) (.39)
Total increase (decrease) in net asset value .99 (1.30)
Net asset value, ending $21.12 $20.13
Total return* 12.43% (4.33%)
Ratios to average net assets:
Net investment income .32% .65%%
Total expenses + 1.38% N/A
Net expenses 1.36% 1.27%
Portfolio turnover 35% 94%
Net assets, ending (in thousands) $90,951 $92,970
Number of shares outstanding,
ending (in thousands) 4,307 4,620
Financial Highlights
Equity Portfolio
Period Ended
September 30,
Class B Shares 1998 #
Net asset value, beginning $26.01
Income from investment operations
Net investment income (.09)
Net realized and unrealized gain (loss) (5.66)
Total from investment operations (5.75)
Total increase (decrease) in net asset value (5.75)
Net asset value, ending $20.26
Total return* (22.11%)
Ratios to average net assets:
Net investment income (1.55%)(a)
Total expenses + 3.19%(a)
Net expenses 2.56%(a)
Expenses reimbursed .93%(a)
Portfolio turnover 110%
Net assets, ending (in thousands) $1,670
Number of shares outstanding,
ending (in thousands) 82
Financial Highlights
Equity Portfolio
Years Ended September 30,
Class C Shares 1998 1997 1996
Net asset value, beginning $26.37 $21.71 $20.66
Income from investment operations.
Net investment income (loss) (.16) (.05) (.16)
Net realized and unrealized
gain (loss) (3.85) 6.21 3.04
Total from investment operations (4.01) 6.16 2.88
Distributions from
Net investment income - (.01) (.02)
Net realized gain 3.36) (1.49) (1.81)
Total distributions (3.36) (1.50) (1.83)
Total increase (decrease) in net
asset value (7.37) 4.66 1.05
Net asset value, ending $19.00 $26.37 $21.71
Total return* (16.47%) 29.84% 14.85%
Ratios to average net assets:
Net investment income (loss) (1.17%) (1.08%) (1.42%)
Total expenses + 2.21% 2.31% 2.86%
Net expenses 2.09% 2.30% 2.85%
Portfolio turnover 110% 93% 118%
Net assets, ending (in thousands) $5,981 $6,249 $2,996
Number of shares outstanding,
ending (in thousands) 315 237 138
Periods Ended September 30,
Class C Shares 1995 1994^
Net asset value, beginning $19.98 $22.12
Income from investment operations.
Net investment income (.03) (.06)
Net realized and unrealized gain (loss) 2.05 (2.08)
Total from investment operations 2.02 (2.14)
Distributions from
Net investment income (.09) -
Net realized gain (1.25) -
Total distributions (1.34) -
Total increase (decrease) in net asset value .68 (2.14)
Net asset value, ending $20.66 $19.98
Total return* 11.16% (9.14%)
Ratios to average net assets:
Net investment income (loss) (.84%) (1.06%)(a)
Total expenses + 2.51% N/A
Net expenses 2.50% 2.75%(a)
Expenses reimbursed 1.07% 4.60%(a)
Portfolio turnover 35% 94%
Net assets, ending (in thousands) $1,802 $670
Number of shares outstanding,
ending (in thousands) 87 34
Footnotes for CSIF Equity Financial Highlights
(a) = Annualized
+ Effective September 30, 1995, this ratio reflects total expenses before
reduction for fees paid indirectly; such reductions are included in the ratio
of net expenses.
* Total return is not annualized for periods less than one year and does not
reflect deduction of any front-end or deferred sales charge.
^ From March 1, 1994 inception
# From April 1, 1998 inception
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Financial Highlights
Calvert Capital Accumulation
Years Ended September 30,
Class A Shares 1998 1997
Net asset value, beginning $27.21 $22.55
Income from investment operations
Net investment income (loss) (.25) (.25)
Net realized and unrealized gain (loss) .96 4.91
Total from investment operations .71 4.66
Distributions from
Net investment income - -
Net realized gain (2.49) -
Total distributions (2.49) -
Total increase (decrease) in net asset value (1.78) 4.66
Net asset value, ending $25.43 $27.21
Total return * 3.37% 20.67%
Ratios to average net assets:
Net investment income (loss) (1.08%) (1.09%)
Total expenses + 1.74% 1.91%
Net expenses 1.61% 1.85%
Expenses reimbursed - -
Portfolio turnover 77% 126%
Net assets, ending (in thousands) $75,068 $54,751
Number of shares outstanding ending
(in thousands) 2,952 2,012
Periods ended September 30,
Class A Shares 1996 1995^
Net asset value, beginning $21.48 $15.00
Income from investment operations
Net investment income (loss) (.24) (.11)
Net realized and unrealized gain (loss) 1.88 6.61
Total from investment operations 1.64 6.50
Distributions from
Net investment income - (.02)
Net realized gain (.57) -
Total distributions (.57) (.02)
Total increase (decrease) in net asset value 1.07 6.48
Net asset value, ending $22.55 $21.48
Total return* 7.92% 43.40%
Ratios to average net assets:
Net investment income (loss) (1.56%) (1.55%)(a)
Total expenses+ 2.16% 2.35%(a)
Net expenses 1.98% 2.06%(a)
Expenses reimbursed - .05%(a)
Portfolio turnover 114% 95%
Net assets, ending (in thousands) $39,834 $16,111
Number of shares outstanding, ending
(in thousands) 1,767 750
Financial Highlights
Calvert Capital Accumulation
Period Ended
September 30,
Class B Shares 1998 #
Net asset value, beginning $28.39
Income from investment operations
Net investment income (loss) (.16)
Net realized and unrealized gain (loss) (2.95)
Total from investment operations (3.11)
Distributions from
Net investment income -
Net realized gain -
Total distributions -
Total increase (decrease) in net asset value (3.11)
Net asset value, ending $25.28
Total return* (10.95)%
Ratios to average net assets:
Net investment income (loss) (2.62%)
Total expenses+ 3.31%
Net expenses 3.01%
Expenses reimbursed .26%
Portfolio turnover 77%
Net assets, ending (in thousands) $3,311
Number of shares outstanding, ending (in thousands) 131
Financial Highlights
Calvert Capital Accumulation
Years Ended September 30,
Class C Shares 1998 1997
Net asset value, beginning $26.64 $22.34
Income from investment operations
Net investment income (loss (.40) (.47)
Net realized and unrealized gain (loss) .88 4.77
Total from investment operations .48 4.30
Distributions from
Net investment income - -
Net realized gain (2.49) -
Total distributions (2.49) -
Total increase (decrease) in net asset value (2.01) 4.30
Net asset value, ending $24.63 $26.64
Total return* 2.52% 19.25%
Ratios to average net assets:
Net investment income (loss) (1.98%) (2.30%)
Total expenses+ 2.75% 3.11%
Net expenses 2.50% 3.05%
Expenses reimbursed - -
Portfolio turnover 77% 126%
Net assets, ending (in thousands) $6,548 $4,184
Number of shares outstanding, ending (in thousands) 266 157
Periods Ended September 30,
Class C Shares 1996 1995^
Net asset value, beginning $21.55 $15.00
Income from investment operations
Net investment income (loss) (.55) (.15)
Net realized and unrealized gain (loss) 1.91 6.70
Total from investment operations 1.36 6.55
Distributions from
Net investment income - -
Net realized gain (.57) -
Total distributions (.57) -
Total increase (decrease) in net asset value .79 6.55
Net asset value, ending $22.34 $21.55
Total return* 6.56% 43.67%
Ratios to average net assets:
Net investment income (loss) (2.82%) (3.13%)(a)
Total expenses + 3.42% 3.79%(a)
Net expenses 3.24% 3.50%(a)
Expenses reimbursed - 2.79%(a)
Portfolio turnover 114% 95%
Net assets, ending (in thousands) $3,164 $1,992
Number of shares outstanding, ending
(in thousands) 142 92
Footnotes for Calvert Capital Accumulation Financial Highlights
(a) = Annualized
+ Ratio reflects total expenses before reduction for fees paid indirectly;
such reductions are included in the ratio of net expenses.
* Total return does not reflect deduction of any front-end or deferred sales
charge.
^ From October 31, 1994 inception
# From April 1, 1998 inception
<PAGE>
Financial Highlights
Calvert World Values International Equity
Years Ended September 30,
Class A Shares 1998 1997 1996
Net asset value, beginning $22.06 $18.62 $17.62
Income from investment operations
Net investment income (.06) .10 .04
Net realized and unrealized gain (loss) (2.11) 3.81 1.53
Total from investment operations (2.05) 3.91 1.57
Distributions from
Net investment income (.06) (.05) (.13)
Excess of net investment income - - -
Net realized gain (loss) (1.38) (.42) (.44)
Total distributions (1.44) (.47) (.57)
Total increase (decrease) in net asset value (3.49) 3.44 1.00
Net asset value, ending $18.57 $22.06 $18.62
Total return* (9.29%) 21.44% 9.22%
Ratios to average net assets:
Net investment income (loss) .27% .51% .23%
Total expenses+ 1.86% 1.91% 1.95%
Net expenses 1.80% 1.76% 1.81%
Expenses reimbursed - - -
Portfolio turnover 84% 58% 96%
Net assets, ending (in thousands) $195,192 $225,169 $194,032
Number of shares outstanding,
ending (in thousands) 10,510 10,207 10,422
Years Ended September 30,
Class A Shares 1995 1994
Net asset value, beginning $17.99 $16.35
Income from investment operations
Net investment income .11 -
Net realized and unrealized gain (loss) .38 2.14
Total from investment operations .49 2.14
Distributions from
Net investment income - (.03)
Excess of net investment income - (.04)
Net realized gains (.86) (.43)
Total distributions (.86) (.50)
Total increase (decrease) in net asset value (.37) 1.64
Net asset value, ending $17.62 $17.99
Total return* 3.19% 13.44%
Ratios to average net assets:
Net investment income (loss) .68% (.04%)
Total expenses + 1.93% N/A
Net expenses 1.79% 1.96%
Expenses reimbursed - .04%
Portfolio turnover 73% 78%
Net assets, ending (in thousands) $191,586 $175,543
Number of shares outstanding,
ending (in thousands) 10,876 9,755
Financial Highlights
Calvert World Values International Equity
Period Ended
September 30,
Class B Shares 1998^^
Net asset value, beginning $21.83
Income from investment operations
Net investment income (.05)
Net realized and unrealized gain (loss) (3.30)
Total from investment operations (3.35)
Total increase (decrease) in net asset value (3.35)
Net asset value, ending $18.48
Total return* (15.35%)
Ratios to average net assets:
Net investment income (loss) (.99%)(a)
Total expenses + 3.22%(a)
Net expenses 3.16%(a)
Expenses reimbursed 2.89%(a)
Portfolio turnover 84%
Net assets, ending (in thousands). $879
Number of shares outstanding,
ending (in thousands) 48
Financial Highlights
Calvert World Values International Equity
Years Ended September 30,
Class C Shares 1998 1997 1996
Net asset value, beginning $21.39 $18.20 $17.28
Income from investment operations
Net investment income (.13) (.07) (.15)
Net realized and unrealized gain (loss) (2.05) 3.68 1.51
Total from investment operations (2.18) 3.61 1.36
Distributions from
Net realized gain (loss) (1.38) (.42) (.44)
Total distributions (1.38) (.47) (.57)
Total increase (decrease) in net asset value (3.56) 3.19 .92
Net asset value, ending $17.83 $21.39 $18.20
Total return* (10.22%) 20.22% 8.07%
Ratios to average net assets:
Net investment income (loss) (.79%) (.47%) (.88%)
Total expenses+ 2.91% 2.91% 3.08%
Net expenses 2.85% 2.76% 2.93%
Expenses reimbursed - - -
Portfolio turnover 84% 58% 96%
Net assets, ending (in thousands) $8,043 $8,799 $6,779
Number of shares outstanding,
ending (in thousands) 451 411 373
Years Ended September 30,
Class C Shares 1995 1994^
Net asset value, beginning $17.86 $18.24
Income from investment operations
Net investment income (.05) (.06 )
Net realized and unrealized gain (loss) .32 (.32)
Total from investment operations .27 (.38)
Distributions from
Net realized gains (.85) -
Total distributions (.85) -
Total increase (decrease) in net asset value (.58) (.38)
Net asset value, ending $17.28 $17.86
Total return* 1.95% (1.27%)
Ratios to average net assets:
Net investment income (loss) (.47%) (1.16%)(a)
Total expenses + 3.12% N/A
Net expenses 2.99% 3.32%(a)
Expenses reimbursed .13% .50%(a)
Portfolio turnover 73% 78%
Net assets, ending (in thousands) $6,061 $3,620
Number of shares outstanding,
ending (in thousands) 351 203
Footnotes for Calvert World Values International Equity Financial Highlights
(a) Annualized
* Total return is not annualized for periods less than one year and does not
reflect deduction of any front-end or deferred sales charge.
+ Effective September 30,1995, this ratio reflects total expenses before
reduction for fees paid indirectly; such reductions are included in the ratio
of net expenses.
^ From March 1, 1994 inception.
^^ From April 1, 1998 inception.
N/A Disclosure not applicable to prior periods.
<PAGE>
Financial Highlights
Calvert New Vision Small Cap
Periods Ended September 30,
Class A Shares 1998 1997^
Net asset value, beginning $15.65 $15.00
Income from investment operations
Net investment income (loss) (.02) (.05)
Net realized and unrealized gain (loss) (3.55) .70
Total from investment operations (3.57) .65
Distributions from
Net investment income - -
Net realized gain (.04) -
Total distributions (.04) -
Total increase (decrease) in net asset value (3.61) .65
Net asset value, ending $12.04 $15.65
Total return* (22.86%) 4.33%
Ratios to average net assets:
Net investment income (loss) (.17%) (.71%)(a)
Total expenses + 1.82% 1.36% (a)
Net expenses 1.71% .90%(a)
Expenses reimbursed .06% 3.36%(a)
Portfolio turnover 68% 196%
Net assets, ending (in thousands) $61,765 $3,260
Number of shares outstanding,
ending (in thousands) 5,129 208
Period Ended September 30,
Class B Shares 1998#
Net asset value, beginning $16.18
Income from investment operations
Net investment income (loss) (.05)
Net realized and unrealized gain (loss) (4.12)
Total from investment operations (4.17)
Distributions from
Net investment income -
Net realized gain -
Total distributions -
Total increase (decrease) in net asset value (4.17)
Net asset value, ending $12.01
Total return* (25.77%)
Ratios to average net assets:
Net investment income (loss) (1.39%)(a)
Total expenses + 3.40%(a)
Net expenses 2.99%(a)
Expenses reimbursed 4.28%(a)
Portfolio turnover 68%
Net assets, ending (in thousands) $523
Number of shares outstanding,
ending (in thousands) 44
Periods Ended September 30,
Class C Shares 1998 1997^
Net asset value, beginning $15.62 $15.00
Income from investment operations
Net investment income (loss) (.15) (.10)
Net realized and unrealized gain (loss) (3.48) .72
Total from investment operations (3.63) .62
Distributions from
Net investment income - -
Net realized gain (.04) -
Total distributions (.04) -
Total increase (decrease) in net asset value (3.67) .62
Net asset value, ending $11.95 $15.62
Total return* (23.31%) 4.13%
Ratios to average net assets:
Net investment income (loss) (1.15%) (.95%)(a)
Total expenses + 2.78% 1.47%(a)
Net expenses 2.64% 1.15%(a)
Expenses reimbursed .16% 9.44%(a)
Portfolio turnover 68% 196%
Net assets, ending (in thousands) $7,097 $318
Number of shares outstanding,
ending (in thousands) 594 20
Footnotes for Calvert New Vision Small Cap Financial Highlights
(a) Annualized
* Total return is not annualized for periods less than one year and does not
reflect deduction of any front-end or deferred sales charge.
+ Ratio reflects total expenses before reduction for fees paid indirectly;
such reductions are included in the ratio of net expenses.
^ From January 31, 1997 inception.
# From April 1, 1998 inception.
<PAGE>
Financial Highlights
Bond Portfolio
Years Ended September 30,
Class A Shares 1998 1997 1996
Net asset value, beginning $16.64 $16.06 $16.34
Income from investment operations
Net investment income .95 .96 .92
Net realized and unrealized
gain (loss) .41 .58 (.29)
Total from investment
operations 1.36 1.54 .63
Distributions from
Net investment income (.96) (.96) (.91)
Net realized gain (.16) - -
Total distributions (1.12) (.96) (.91)
Total increase (decrease) in
net asset value .24 .58 (.28)
Net asset value, ending $16.88 $16.64 $16.06
Total return* 8.46% 9.89% 3.96%
Ratios to average net assets:
Net investment income 5.69% 5.85% 5.60%
Total expenses + 1.14% 1.23% 1.29%
Net expenses 1.07% 1.19% 1.26%
Portfolio turnover 620% 319% 22%
Net assets, ending (in thousands) $65,807 $59,656 $62,259
Number of shares outstanding,
ending (in thousands) 3,897 3,585 3,876
Years Ended September 30,
Class A Shares 1995 1994
Net asset value, beginning $15.49 $17.77
Income from investment operations
Net investment income .96 .94
Net realized and unrealized gain (loss) .91 (1.81)
Total from investment operations 1.87 (.87)
Distributions from
Net investment income (.93) (.94)
Net realized gain (.06) (.47)
Tax return of capital (.03) -
Total distributions (1.02) (1.41)
Total increase (decrease) in net asset value .85 (2.28)
Net asset value, ending $16.34 $15.49
Total return* 12.57% (5.18%)
Ratios to average net assets:
Net investment income 6.04% 5.64%
Total expenses + 1.24% N/A
Net expenses 1.22% 1.10%
Portfolio turnover 29% 19%
Net assets, ending (in thousands) $62,929 $61,573
Number of shares outstanding,
ending (in thousands) 3,850 3,976
Financial Highlights
Bond Portfolio
Period Ended
September 30
Class B Shares 1998#
Net asset value, beginning $16.69
Income from investment operations
Net investment income .36
Net realized and unrealized gain (loss) 19
Total from investment operations 55
Distributions from
Net investment income (.40)
Total increase (decrease) in net asset value 15
Net asset value, ending $16.84
Total return* 3.36%
Ratios to average net assets:
Net investment income 4.14%(a)
Total expenses + 2.55%(a)
Net expenses 2.50%(a)
Expenses reimbursed 5.53%(a)
Portfolio turnover 620%
Net assets, ending (in thousands) $557
Number of shares outstanding,
ending (in thousands) 33
Period Ended
September 30,
Class C Shares 1998^^
Net asset value, beginning $16.81
Income from investment operations
Net investment income .21
Net realized and unrealized gain (loss) .08
Total from investment operations .29
Distributions from
Net investment income (.26)
Total increase (decrease) in net asset value .03
Net asset value, ending $16.84
Total return* 1.75%
Ratios to average net assets:
Net investment income 4.06%(a)
Total expenses + 2.74%(a)
Net expenses 2.50%(a)
Expenses reimbursed 4.35%(a)
Portfolio turnover 620%
Net assets, ending (in thousands) $399
Number of shares outstanding,
ending (in thousands) 24
Footnotes for CSIF Bond Financial Highlights
(a) = Annualized
+ Effective September 30, 1995, this ratio reflects total expenses before
reduction for fees paid indirectly; such reductions are included in the ratio
of net expenses.
* Total return is not annualized for periods less than one year and does not
reflect deduction of any front-end or deferred sales charge.
^^ From June 1, 1998 inception
# From April 1, 1998 inception
<PAGE>
Financial Highlights
Money Market Portfolio
Years Ended September 30,
1998 1997 1996
Net asset value, beginning $1.00 $1.00 $1.00
Income from investment operations
Net investment income .049 .048 .048
Distributions from
Net investment income (.049) (.048) (.048)
Net asset value, ending $1.00 $1.00 $1.00
Total return 5.02% 4.89% 4.88%
Ratios to average net assets:
Net investment income 4.92% 4.79% 4.77%
Total expenses + .89% .89% .89%
Net expenses .87% .87% .87%
Expenses reimbursed .05% .11% .21%
Net assets, ending (in thousands) $172,701 $166,111 $166,516
Number of shares outstanding,
ending (in thousands) 172,739 166,163 166,569
Years Ended September 30,
1995 1994
Net asset value, beginning $1.00 $1.00
Income from investment operations
Net investment income .050 .031
Distributions from
Net investment income (.050) (.031)
Net asset value, ending $1.00 $1.00
Total return 5.13% 3.13%
Ratios to average net assets:
Net investment income 5.03% 3.07%
Total expenses + .89% N/A
Net expenses .87% .87%
Expenses reimbursed .18% .18%
Net assets, ending (in thousands) $153,996 $143,779
Number of shares outstanding,
ending (in thousands) 154,044 143,826
Footnotes for CSIF Money Market Financial Highlights
+ Effective September 30, 1995, this ratio reflects total expenses before
reduction for fees paid indirectly; such reductions are included in the ratio
of net expenses.
<PAGE>
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 group* 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.
* 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>
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.
<PAGE>
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%
Capital Accumulation 4.00%/0.25% 4.00%/0.25% 1.00%/1.00%
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. CDI pays dealers a finder's fee on Class A
shares purchased at NAV in accounts with $1 million or more (excluding CSIF
Money Market.) The finder's fee is 1% of the NAV purchase amount on the first
$2 million, .80% on $2 to $3 million, .50% on $3 to $50 million, .25% on $50
to $100 million, and .15 over $1 million. All payments will be in compliance
with the rules of the National Association of Securities Dealers, Inc.
<PAGE>
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
330 West 9th Street
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
<PAGE>
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- 3334 (CSIF)
no. 811- 06563 (CWVF International Equity and
Capital Accumulation)
no. 811- 3416 (New Vision)
<PAGE>
CALVERT SOCIALLY RESPONSIBLE PROSPECTUS
January 31, 1999
Class I (Institutional) Shares
o Calvert Social Investment Fund (CSIF) Balanced
o CSIF Managed Index
o CSIF Equity
o CSIF Bond
o Calvert Capital Accumulation
o Calvert World Values International Equity
o Calvert New Vision Small Cap
These securities have not been approved or disapproved by the Securities and
Exchange Commission (SEC) or any State Securities Commission, nor has the SEC
or any State Securities Commission passed on the accuracy or adequacy of this
prospectus. Any representation to the contrary is a criminal offense.
Note: Class I shares may not be available in all Funds. Please call
1-800-327-2109 for availability.
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
About the Funds
Investment objective, strategy, past performance 2
Fees and Expenses 9
Principal Investment Practices and Risks 10
About Social Investing
Investment Selection Process and
Socially Responsible Investment Criteria 13
High Social Impact Investments 15
Special Equities 15
About Your Investment
Subadvisors and Portfolio Managers 15
Advisory Fees 16
How to Open an Account 17
Important - How Shares are Priced 17
When Your Account Will be Credited 17
Other Calvert Group Features
(Exchanges, Minimum Account Balance, etc.) 17
Dividends, Capital Gains and Taxes 18
How to Sell Shares 19
Financial Highlights 20
<PAGE>
CSIF Balanced (Note: Formerly known as CSIF Managed Growth)
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 criteria.
(Note: This objective is subject to shareholder approval expected at a
shareholder meeting in late February, 1999. Unless and until shareholders
approve the new objective, the current objective for CSIF shall continue in
effect, which is CSIF Balanced "seeks to achieve a total return above the rate
of inflation, through an actively managed, diversified portfolio of common and
preferred stocks, bonds and money market instruments, which offer income and
capital growth opportunity and which satisfy the investment and social
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 and some mid-cap stocks.
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 and focuses
on a duration target approximating the Lehman Aggregate Bond Index.
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.
The Fund invests 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. Investments are
selected on the basis of their ability to contribute to the dual objectives of
financial soundness and social criteria. See "Investment Selection Process."
- --------------------------------------------------------------------------------
Principal risks:
- --------------------------------------------------------------------------------
You could lose money on your investment in the Fund, or the Fund could
underperform for any of the following reasons:
o The stock or bond market goes down
o The individual stocks and bonds in the Fund do not perform as well
as expected
o For the fixed-income portion of the Fund, the Advisor's forecast as
to interest rates is not correct
o For the foreign securities held in the Fund, if foreign currency
values go down versus the U.S. dollar
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 at NAV. 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 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 with Year-by-Year Total Return
(Class A return at NAV)
1989 18.73% 1994 -5.50%
1990 1.79% 1995 25.85%
1991 17.79% 1996 9.03%
1992 7.46% 1997 18.92%
1993 5.95% 1998 17.49%
Best Quarter (of periods shown) Q4 '98 12.42%
Worst Quarter (of periods shown) Q3 '98 (6.47)%
Average Annual Total Returns (as of 12-31-98)
(with maximum Class A sales charge deducted)
1 year 5 years 10 years
CSIF Balanced: Class A 11.92% 11.53% 10.83%
S&P 500 Index Monthly Reinvested 28.74% 24.08% 19.20%
Lehman Aggregate Bond Index TR 8.69% 7.27% 9.26%
Lipper Balanced Funds Index 15.09% 13.87% 13.32%
(Note: Class I shares have no sales charge.)
For current yield information call 800-368-2745, or visit Calvert Group's
website at www.calvertgroup.com
<PAGE>
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.
The first step of the investment strategy is to identify those stocks in the
Russell 1000 Index which meet the Fund's social screening criteria. From this
list of stocks, the Subadvisor chooses stocks that closely mirror the Index in
terms of various factors such as industry weightings, capitalization, and
yield. Even though certain industries may be eliminated from the Fund by the
screens, the factor model permits mathematical substitutes which the
Subadvisor expects to mimic the return characteristics of the missing
industries and stocks.
The final step in the process is to apply the Subadvisor's proprietary
valuation method which attempts to identify the stocks which have the greatest
potential for superior performance. Each security identified for potential
investment is ranked according to two separate measures: value and momentum of
market sentiment. These two measures combine to create a single composite
score of each stock's attractiveness. The Fund is constructed from securities
that meet its social criteria, weighted through a mathematical process that
seeks to reduce risk vis-a-vis the Russell 1000 Index. The Subadvisor expects
to hold between 100 and 150 stocks.
The Russell 1000 Index measures the performance of the 1,000 largest U.S.
companies based on total market capitalization. The Index is adjusted, or
reconstituted, annually. As of the latest reconstitution, the average market
capitalization of the Russell 1000 was approximately $7.6 billion.
Tracking the Index
The Subadvisor expects a tracking error over time of no more than 2.5%,
although there can be no guarantee such results will be achieved. The Fund's
ability to track the Index will be monitored by analyzing returns to ensure
that the returns are reasonably consistent with Index returns. 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 Fund associated with that factor may be adjusted to
ensure a higher degree of correlation to the Index.
The Fund invests 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. Investments are
selected on the basis of their ability to contribute to the dual objectives of
financial soundness and social criteria. See "Investment Selection Process."
- --------------------------------------------------------------------------------
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:
o The stock market or the Russell 1000 Index goes down
o The individual stocks in the Fund or the index modeling portfolio do
not perform as well as expected
o 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 own 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.
(No performance results are shown for CSIF Managed Index since its inception
was 4/15/98.)
<PAGE>
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).
The Subadvisor looks for growing companies with a history of steady earnings
growth. Companies are selected based on the Subadvisor's opinion that the
company has the ability to sustain growth through growing profitability and
that the stock is favorably priced with respect to those growth expectations.
The Fund invests 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. Investments are
selected on the basis of their ability to contribute to the dual objectives of
financial soundness and social criteria. See "Investment Selection Process."
- --------------------------------------------------------------------------------
Principal risks:
- --------------------------------------------------------------------------------
You could lose money on your investment in the Fund, or the Fund could
underperform for any of the following reasons:
o The stock market goes down
o 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 at NAV. 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 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 with Year-by-Year Total Return
(Class A return at NAV)
1989 27.45% 1994 -12.06%
1990 -4.87% 1995 20.29%
1991 21.93% 1996 21.68%
1992 8.37% 1997 19.33%
1993 2.13% 1998 10.89%
Best Quarter (of periods shown) Q1 '98 11.73%
Worst Quarter (of periods shown) Q3 '98 (17.56)%
Average Annual Total Returns (as of 12-31-98)
(with maximum Class A sales charge deducted)
1 year 5 years 10 years
CSIF Equity: Class A 5.62% 10.17% 10.25%
S&P 500 Index Monthly Reinvested 28.74% 24.08% 19.20%
Lipper Growth Funds Index 25.69% 19.82% 17.21%
(Note: Class I shares have No sales charge)
<PAGE>
Calvert Capital Accumulation
Advisor Calvert Asset Management Company, Inc.
Subadvisor Brown Capital Management, Inc.
Objective
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. Most companies in the Index have a capitalization of $500 million to
$10 billion. Stocks chosen for the Fund combine growth and value
characteristics or offer the opportunity to buy growth at a reasonable price.
The Subadvisor favors companies which have an above market average prospective
growth rate, but sell at below market average valuations. The Subadvisor
evaluates each stock in terms of its growth potential, the return for risk free
investments and the risk and reward potential for the company to determine a
reasonable price for the stock.
The Fund invests 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. Investments are
selected on the basis of their ability to contribute to the dual objectives of
financial soundness and social criteria. See "Investment Selection Process."
- --------------------------------------------------------------------------------
Principal risks
- --------------------------------------------------------------------------------
You could lose money on your investment in the Fund, or the Fund could
underperform for any of the following reasons:
o The stock market goes down
o The individual stocks in the Fund do not perform as well as expected
o 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 at NAV. 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 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 with Year-by-Year Total Return
(Class A return at NAV)
1989 N/A 1994 N/A
1990 N/A 1995 36.75%
1991 N/A 1996 9.37%
1992 N/A 1997 22.02%
1993 N/A 1998 29.35%
Best Quarter (of periods shown) Q4 '98 25.03%
Worst Quarter (of periods shown) Q3 '98 (14.00)%
Average Annual Total Returns (as of 12-31-98)
(with maximum Class A sales charge deducted)
1 year 5 years 10 years
Capital Accumulation: Class A1 23.19% N/A N/A
S&P Mid-Cap 400 Index 18.25% N/A N/A
Lipper Mid-Cap Funds Index 13.92% N/A N/A
1 Since inception "A" (10/31/94) 22.09; S&P Mid Cap 400 Index 22.77; and
Lipper Mid-Cap Funds Index 18.36.
(Note: Class I shares have No sales charge)
<PAGE>
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 Subadvisor selects countries based on a "20 questions"
model which uses macro- and micro-economic inputs to rank the attractiveness
of markets in various countries. Within each country, the Subadvisor uses
valuation techniques that have been shown to best determine value within that
market. In some countries, the valuation process may favor the comparison of
price-to-cash-flow while in other countries, price-to-sales or price-to-book
may be more useful in determining which stocks are undervalued.
The Fund invests primarily in more developed economies and markets. No more
than 5% of Fund assets are invested in the U.S. (excluding High Social Impact
and Special Equities investments).
The Fund invests 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. Investments are
selected on the basis of their ability to contribute to the dual objectives of
financial soundness and social criteria. See "Investment Selection Process."
- --------------------------------------------------------------------------------
Principal risks:
- --------------------------------------------------------------------------------
You could lose money on your investment in the Fund, or the Fund could
underperform for any of the following reasons:
o The stock markets (including those outside the U.S.) go down
o The individual stocks in the Fund do not perform as well as expected
o 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 the performance of the Class A shares at NAV. 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 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 with Year-by-Year Total Return
(Class A return at NAV)
1989 N/A 1994 -2.66%
1990 N/A 1995 11.81%
1991 N/A 1996 12.02%
1992 N/A 1997 6.57%
1993 25.78% 1998 16.10%
Best Quarter (of periods shown) Q4 '98 17.97%
Worst Quarter (of periods shown) Q3 '98 (14.82)%
Average Annual Total Returns (as of 12-31-98)
(with maximum Class A sales charge deducted)
1 year 5 years 10 years
CWVF International Equity: Class A1 10.59% 7.52% N/A
MSCI EAFE Index GD 20.33% 9.50% N/A
Lipper International Funds Index 12.66% 8.59% N/A
1 Inception "A" (7/31/92) 9.22%; MSCI EAFE Index GD 12.25%; and Lipper
International Funds Index 11.75%. The month end date of 7/31/92 is used for
comparison purposes only, actual fund inception is 7/2/92.
(Note: Class I shares have No sales charge)
<PAGE>
Calvert New Vision Small Cap
Advisor Calvert Asset Management Company, Inc.
Subadvisor Awad Asset Management, Inc.
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
At least 65% of the Fund's assets will be invested 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.
The Fund invests 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. Investments are
selected on the basis of their ability to contribute to the dual objectives of
financial soundness and social criteria. See "Investment Selection Process."
- --------------------------------------------------------------------------------
Principal risks
- --------------------------------------------------------------------------------
You could lose money on your investment in the Fund, or the Fund could
underperform for any of the following reasons:
o The stock market goes down
o The individual stocks in the Fund do not perform as well as expected
o 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 at NAV. 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 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 with Year-by-Year Total Return
(Class A return at NAV)
1989 N/A 1994 N/A
1990 N/A 1995 N/A
1991 N/A 1996 N/A
1992 N/A 1997 N/A
1993 N/A 1998 -9.43%
Best Quarter (of periods shown) Q2 '97 15.51%
Worst Quarter (of periods shown) Q3 '98 (21.82)%
Average Annual Total Returns (as of 12-31-98)
(with maximum Class A sales charge deducted)
1 year 5 years 10 years
New Vision Small Cap: Class A1 -13.75% N/A N/A
Russell 2000 Index TR -2.55% N/A N/A
Lipper Small-Cap Funds Index -0.85% N/A N/A
1 From inception (1/31/97) -13.73%; Russell 2000 Index TR 8.48%; Lipper
Small-Cap Funds Index 5.83%.
(Note: Class I shares have No sales charge)
<PAGE>
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.
The Fund invests 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. Investments are
selected on the basis of their ability to contribute to the dual objectives of
financial soundness and social criteria. See "Investment Selection Process."
- --------------------------------------------------------------------------------
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:
o The bond market goes down
o The individual bonds in the Fund do not perform as well as expected
o 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
o 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 bond may have greater impact on the Fund.
(The Fund's non-diversified status is subject to shareholder approval expected
at a shareholder meeting in late February 1999. Unless and until the
shareholders approve the changes, the Fund will be diversified.)
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 at NAV. 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 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 with Year-by-Year Total Return
(Class A return at NAV)
1989 13.56% 1994 -5.80%
1990 8.30% 1995 17.39%
1991 15.75% 1996 2.92%
1992 6.72% 1997 9.87%
1993 11.64% 1998 6.13%
Best Quarter (of periods shown) Q3 '91 5.99%
Worst Quarter (of periods shown) Q1 '94 (3.57)%
Average Annual Total Returns (as of 12-31-98)
(with maximum Class A sales charge deducted)
1 year 5 years 10 years
CSIF Bond: Class A 2.16% 5.02% 8.04%
Lehman Aggregate Bond Index TR 8.69% 7.27% 9.26%
Lipper Corporate Debt Funds
A Rated Index 7.31% 6.61% 8.85%
(Note: Class I shares have No sales charge)
<PAGE>
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 CSIF CSIF CSIF Capital
Balanced2 Mn. Indx Equity2 Accum.2
Annual fund operating expenses
Management fees .55 .70 .60 .75
Distribution and service (12b-1) fees none none none none
Other expenses .20 .33 .31 .33
Total annual fund operating expenses .75 1.03 .91 1.08
Fee waiver and/or expense reimbursement1 - (.28) (.11) (.28)
Net Expenses .75 .75 .80 .80
CLASS I CWVF New CSIF
Int Eq. Vision3 Bond
Annual fund operating expenses
Management fees .90 .85 .45
Distribution and service (12b-1) fees none none none
Other expenses .35 .40 .34
Total annual fund operating expenses 1.25 1.25 .79
Fee waiver and/or expense reimbursement1 (.20) (.43) (.19)
Net Expenses 1.05 .82 .60
Explanation of Fees and Expenses Table
Expenses are based on estimates for the current fiscal year. 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.
1 CAMCO has agreed to waive fees and/or reimburse expenses (net of any expense
offset arrangements) for all of the Funds' Class I shares through December 31,
1999. The contractual expense cap is shown as "Net Expenses", this is the
maximum amount that may be charged to the Funds for this period.
2 The Management fees for CSIF Balanced, CSIF Equity, and Calvert Capital
Accumulation have been restated to reflect changes expected to be approved by
shareholders in early 1999. See "About Calvert Group--Advisory Fees". If
shareholders do not approve the changes to the fees the Management fees and
Total annual fund operating expenses and Net Expenses, if applicable, would be
0.07% lower for CSIF Balanced, 0.14% lower for CSIF Equity, and 0.01% lower
for Calvert Capital Accumulation.
3 Expenses for New Vision Small Cap have been restated to reflect expenses
expected to be incurred in 1999.
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:
o You invest $1,000,000 in the Fund for the time periods indicated;
o Your investment has a 5% return each year; and
o The Fund's operating expenses remain the same.
Although your actual costs may be higher or lower, under these assumptions
your costs would be as follows if the Class I shares are held for 1, 3, 5 or
10 years:
CSIF Balanced CWVF International Equity Capital Accumulation
1 $7,659 1 $10,707 1 $8,168
3 $23,969 3 $37,679 3 $31,566
5 $41,693 5 $66,710 5 $56,835
10 $93,032 10 $149,369 10 $129,200
CSIF Managed Index New Vision Small Cap
1 $7,659 1 $8,371
3 $29,996 3 $35,402
5 $54,141 5 $64,498
10 $123,408 10 $147,340
CSIF Equity CSIF Bond
1 $8,168 1 $6,132
3 $27,916 3 $23,329
5 $49,312 5 $42,004
10 $110,947 10 $96,022
<PAGE>
Principal Investment Practices and Risks
The most concise description of each Fund's principal investment strategies
and associated risks 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 the investments and techniques
summarized in the risk-return summary, along with certain additional
investment techniques and 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.
Key to Table
@ 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
Column 1 = Explanation of Practice
Column 2 = CSIF Balanced
Column 3 = CSIF Managed Index
Column 4 = CSIF Equity
Column 5 = Capital Accumulation
Column 2 = CWVF International Equity
Column 7 = Calvert New Vision Small Cap
Column 8 = CSIF Bond
Investment Practices
- ------------------------------------------------------------------------
Column 1 2 3 4 5 6 7 8
- ------------------------------------------------------------------------
- ------------------------------------------------------------------------
Active Trading @ 0 0 0 0 0 @
Strategy/Turnover
involves selling a
security soon after
purchase. An 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. 0 0 0 0 0 0 0
During adverse (35T) (35T)
market, economic or
political conditions,
the Fund may depart
from its principal
investment strategies
by increasing its
investment in U.S.
government securities
and other short-term
interest-bearing
securities. During
times of any
temporary defensive
positions, a Fund may
not be able to
achieve its
investment objective
Risks: Opportunity.
- ------------------------------------------------------------------------
- ------------------------------------------------------------------------
Conventional
Securities 25N -- 25N @ 25N 15T1 25N
Foreign Securities.
Securities issued by
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
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 @ Na 0 0 0 0 @
BBB/Baa or higher or
comparable unrated
bonds. Risks:
Interest Rate, Market
and Credit.
- ------------------------------------------------------------------------
- ------------------------------------------------------------------------
Below-investment 20N3 NA 20N3 10N3 5N3 5N3 20N3
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 @ NA 0 0 0 0 @
securities. Bonds
that have not 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.
- ------------------------------------------------------------------------
<PAGE>
- ------------------------------------------------------------------------
Illiquid securities.
Securities which 15N 15N 15N 15N 15N 15N 15N
cannot be readily
sold because there is
no active market.
Risks: Liquidity,
Market and
Transaction.
- ------------------------------------------------------------------------
- ------------------------------------------------------------------------
Unleveraged
derivative securities @ NA 0 0 0 0 @
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. @ NA 0 0 0 0 @
Securities are 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.
- ------------------------------------------------------------------------
- ------------------------------------------------------------------------
Unleveraged
derivative
securities, (con't.)
Participation 0 NA 0 0 0 0 0
interests. Securities
representing an
interest in another
security or in bank
loans. Risks: Credit,
Interest Rate and
Liquidity.
- ------------------------------------------------------------------------
- ------------------------------------------------------------------------
Leveraged derivative
instruments Currency
contracts. Contracts 0 NA 0 5T 5T - - 0
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. 5T 5T 5T 5T 5T 5T 5T
Contracts 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. 0 0 0 0 0 0 0
Agreement to buy or 5N 5N 5N 5N 5N 5N 5N
sell a specific
amount of a commodity
or financial
instrument at a
particular price on a
specific future date.
Risks: Interest Rate,
Currency, Market,
Leverage,
Correlation,
Liquidity and
Opportunity.
- ------------------------------------------------------------------------
- ------------------------------------------------------------------------
Structured securities
Indexed and/or
leveraged 0 NA NA NA 0 NA 0
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.
- ------------------------------------------------------------------------
1 New Vision may invest only in American Depositary Receipts (ADRs) -
dollar-denominated receipts representing shares of a foreign issuer. ADRs are
traded on U.S. exchanges. See the SAI.
2 Excludes any high social impact investments.
<PAGE>
The Funds have additional investment policies and restrictions that are not
principal to their investment strategies (for example, repurchase agreements,
borrowing, pledging, and reverse repurchase agreements, securities lending,
when-issued securities 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, sells or holds 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 or the market 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 unanticipated prepayments may occur, reducing the value of a
mortgage-backed security. The Fund must then reinvest those assets at the
current market rate, which may be lower.
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.
<PAGE>
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, Calvert Social Investment Fund (CSIF) and Calvert World
Values International Equity Fund (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 Fund 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:
o 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.
o 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.
o 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.
o 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:
o Production, or the manufacture of equipment, to produce nuclear energy
o Business activities in support of repressive regimes
o Manufacture of weapon systems
o Manufacture of alcoholic beverages or tobacco products
o 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.
<PAGE>
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:
o 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.
o 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:
o Contribute to human rights abuses in other countries 1
o Produce nuclear power or nuclear weapons, or have more than 10% of revenues
derived from the production or sale of weapons systems
o 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 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:
o environment
o employee relations
o product criteria
o weapons systems
o nuclear energy
o human rights
Both Funds will avoid investing in companies that have:
o Significant or historical patterns of violating environmental regulations,
or otherwise have an egregious environmental record
o 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
o Nuclear power plant operators and owners, or manufacturers of key components
in the nuclear power process
o Significantly engaged in weapons production( including weapons systems
contractors and major nuclear weapons systems
contractors)
o Significantly involved in the manufacture of tobacco or alcohol products
o 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.
1 CWVF may invest in companies that operate in countries with poor human
rights records if we believe the companies are making a positive contribution.
<PAGE>
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 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, 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. High Social Impact Investments are valued
under the direction and control of the Fund's Board.
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
and educational 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 and
institutional investors and then invest these assets directly in non-profit or
not-for-profit community development organizations and community development
banks 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 $6 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. 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. 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 12 years of experience in the investment
industry, and is a frequent panelist on Wall Street Week with Louis Rukeyser.
<PAGE>
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.
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.
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 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, Inc. (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 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 .
CSIF Balanced 0.62% 2, 5
CSIF Managed Index 0.60% 3, 4
CSIF Equity 0.56% 2, 5
CSIF Bond 0.55% 1, 2
CWVF International Equity 1.00% 2
Capital Accumulation 0.79% 2, 5
New Vision Small Cap 0.90% 2
1 CAMCO waived part of its advisory fee for CSIF Bond. The full contractual
rate CSIF Bond was obligated to pay CAMCO for fiscal year 1998 was 0.65%.
2 These advisory agreements are proposed to be changed by a vote of
shareholders in February 1999. If approved, the new advisory fee would be:
CSIF Balanced, 0.425%; CSIF Equity, 0.50%; CSIF Bond, 0.35%; CWVF
International Equity, 0.75%; Capital Accumulation, 0.65%; and New Vision Small
Cap, 0.75%. Note the advisory fee does not include the administrative services
fee, paid to the Advisor's affiliate. See the fee table of "Fees and Expenses"
for the combined advisory and administrative services fee shown as "Management
Fee."
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 under which CAMCO may elect
to recapture from the Fund in a later year any fees CAMCO waives or expenses
it assumes, subject to certain limitations.
5 CSIF Balanced has 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
relative to the relevant index (CAMCO: Lehman Aggregate Bond; NCM: Russell
3000; Brown: S&P 500). CSIF Equity has a performance adjustment which would
cause the fee to be as high as 0.90% or as low as 0.50%, depending on its
performance relative to the S&P 500 Index. 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 the Fund's performance relative to the S&P 400
Midcap Index. These performance adjustments are proposed to be eliminated by a
vote of shareholders in February 1999.
<PAGE>
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.
HOW TO OPEN AN ACCOUNT
Complete and sign an application for each new account. Be sure to specify
Class I. All purchases must be made by bankwire in U.S. dollars. For more
information and wire instructions, call Calvert Group at 800-327-2109.
Minimum To Open an Account $1,000,000
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.
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. Please note that there are some federal holidays, however, such
as Columbus Day and Veteran's Day, when the NYSE is open and the Fund is open
but purchases cannot be made due to the closure of the banking system.
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 in good order. Each Fund reserves the right to suspend the offering
of shares for a period of time or to reject any specific purchase order. 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.
TELEPHONE TRANSACTIONS
You may purchase, redeem, or exchange shares and wire funds 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.
<PAGE>
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.
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.
Shares may only be exchanged for Class I shares of another Calvert Fund.
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. You may be required to pay a fee for these special services.
MINIMUM ACCOUNT BALANCE
Please maintain a balance in each of your Fund accounts of at least $1,000,000
per Fund. 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, or moved to Class A (at NAV) 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 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 Bond Paid monthly
CSIF Balanced Paid quarterly
CSIF Equity Paid annually
CSIF Managed Index Paid annually
CWVF International Equity Paid annually
Capital Accumulation Paid annually
New Vision Small Cap Paid annually
<PAGE>
Dividend payment options
Dividends and any distributions are automatically reinvested in the same Fund
at NAV, unless you elect to have amounts of $10 or more paid to you by wire to
a predesignated bank account. 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.
Buying a Dividend
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.
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 - call 800-368-2745
You may redeem shares from your account by telephone and have your money wired
to an address or bank you have previously authorized. Class I redemptions must
be made by wire. Please note that there are some federal holidays, however,
such as Columbus Day and Veteran's Day, when the NYSE is open and the Fund is
open but redemptions cannot be made due to the closure of the banking system.
If you want the money to be wired to a bank not previously authorized, then a
voided bank check must be provided. To add instructions to wire to a
destination not previously established, or if you would like funds sent to a
different address or another person, your letter must be signature guaranteed.
<PAGE>
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.
Class I
Shares
Period Ended
September 30,
1998 ##
Net asset value, beginning $15.00
Income from investment operations
Net investment income .04
Net realized and unrealized gain (loss) (1.50)
Total from investment operations (1.46)
Total increase (decrease) in net asset value (1.46)
Net asset value, ending $13.54
Total return* (9.73%)
Ratios to average net assets:
Net investment income .54%(a)
Total expenses + .81%(a)
Net expenses .75%(a)
Expenses reimbursed .22%(a)
Portfolio turnover 27%
Net assets, ending (in thousands) $14,897
Number of shares outstanding,
ending (in thousands) 1,100
(a) = Annualized
+ This ratio reflects total expenses before reduction for fees paid
indirectly; such reductions are included in the ratio of net expenses.
* Total return is not annualized for periods less than one year and does not
reflect deduction of any front-end or deferred sales charge.
## From April 15, 1998 inception
<PAGE>
To Open an Institutional (Class I) Account:
800-327-2109
Performance and Prices:
Calvert Information Network
24 hours, 7 days a week
800-368-2745
Service for Existing Accounts:
Shareholders 800-327-2109
TDD for Hearing-Impaired:
800-541-1524
Calvert Office:
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
Registered, Certified or
Overnight Mail:
Calvert Group
c/o NFDS
330 West 9th Street
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
<PAGE>
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: 1-800-327-2109
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.811-3334 (CSIF)
no.811- 06563 (CWVF International Equity and Capital Accumulation)
no.811- 3416 (New Vision)
<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
Information: (301) 951-4820
Shareholder Services: (800) 368-2745
Broker (800) 368-2746
Services: (301) 951-4850
TDD for the Hearing- 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 8
Investment Selection Process 11
Dividends, Distributions and Taxes 12
Net Asset Value 13
Calculation of Yield and Total Return 15
Purchase and Redemption of Shares 18
Advertising 18
Trustees, Officers and Advisory Council 19
Investment Advisor 22
Method of Distribution 25
Transfer and Shareholder Servicing Agents 27
Portfolio Transactions 27
Independent Accountants and Custodians 28
Control Persons and Principal Holders of Securities 28
General Information 29
Appendix 30
<PAGE>
- --------------------------------------------------------------------------------
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 US 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.
Investing in emerging markets in particular, those countries whose
economies and capital markets are not as developed as those of more
industrialized nations, carries its own special risks. Among other risks, the
economies of such countries may be affected to a greater extent than in other
countries by price fluctuations of a single commodity, by severe cyclical
climactic conditions, lack of significant history in operating under a
market-oriented economy, or by political instability, including risk of
expropriation.
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 US dollar, the value of the security
in US 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 US branches of foreign banks ("Yankee" instruments) and
obligations of foreign branches of US banks ("Eurodollar" instruments). All
such instruments must be high-quality, US dollar-denominated obligations.
Although these instruments are not subject to foreign currency risk since they
are US dollar-denominated, investments in foreign money market instruments may
involve risks that are different than investments in securities of US 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, US 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, US
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.
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 US
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 US 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.
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INVESTMENT RESTRICTIONS
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Shareholders of the Fund are currently voting on various changes to
the Fund, pursuant to a proxy statement mailed in early January, 1999. If
approved at the special meeting of shareholders on February 24, 1999, the
revised fundamental investment restrictions will be as follows:
Fundamental Investment Restrictions
Each Portfolio has adopted the following fundamental investment
restrictions. These restrictions cannot be changed without the approval of the
holders of a majority of the outstanding shares of the affected Portfolio.
(1) CSIF Money market, Balanced, Equity, and Managed Index:
Each Portfolio may not make any investment inconsistent with
its classification as a diversified investment company under
the 1940 Act.
(2) CSIF Bond: CSIF Bond Portfolio may not make any
investment inconsistent with its classification as a
nondiversified investment company under the 1940 Act.
(3) No Portfolio may concentrate its investments in the
securities of issuers primarily engaged in any particular
industry (other than securities issued or guaranteed by the
US Government or its agencies or instrumentalities and
repurchase agreements secured thereby), or, for CSIF Money
Market, domestic bank money market instruments.
(4) No Portfolio may issue senior securities or borrow
money, except from banks for temporary or emergency purposes
and then only in an amount up to 33 1/3% of the value of a
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, the affected
Portfolio may pledge, mortgage or hypothecate its assets.
(4) No Portfolio may underwrite the securities of other
issuers, except as allowed by law or to the extent that the
purchase of obligations in accordance with a Portfolio's
investment objective and policies, either directly from the
issuer, or from an underwriter for an issuer, may be deemed
an underwriting.
(5) No Portfolio may invest directly in commodities or real
estate, although a Portfolio 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.
(6) No Portfolio may make loans, other than through the
purchase of money market instruments and repurchase
agreements or by the purchase of bonds, debentures or other
debt securities, or as permitted by law. The purchase of all
or a portion of an issue of publicly or privately
distributed debt obligations in accordance with a
Portfolio's investment objective, policies and restrictions,
shall not constitute the making of a loan.
Nonfundamental Investment Restrictions
The Board of Trustees has adopted the following nonfundamental
investment restrictions. A nonfundamental investment restriction can be
changed by the Board at any time without a shareholder vote.
Money Market Portfolio may not:
(1) Purchase the obligations of foreign issuers (except
foreign money market instruments that are US dollar
denominated).
(2) 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 its total assets. CSIF Money Market does not intend
to make any purchases of securities if borrowing exceeds 5% of its
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 a Portfolio's total assets. No Portfolio intends to
make any purchases of securities if borrowing exceeds 5% of its 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. The Portfolio does
not intend to make any purchases of securities if borrowing exceeds
5% of its 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.
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As noted above, the shareholders of CSIF are currently voting on
various changes to the Portfolios, pursuant to a proxy statement mailed in
early January, 1999. These are the fundamental investment restrictions in
effect until February 24, 1999, or which may be in effect if the above changes
are not approved by shareholders:
Fundamental Investment Restrictions
The Fund has adopted the following investment restrictions which,
together with the foregoing investment objectives and fundamental policies of
a Portfolio, cannot be changed without the approval of the holders of a
majority of the outstanding shares of the affected Portfolio. As defined in
the Investment Company Act of 1940, this means the lesser of the vote of (a)
67% of the shares of the Portfolio at a meeting where more than 50% of the
outstanding shares are present in person or by proxy or (b) more than 50% of
the outstanding shares of the Portfolio. Shares have equal rights as to
voting, except that only shares of a Portfolio are entitled to vote on matters
affecting only that Portfolio (such as changes in investment objective,
policies or restrictions).
CSIF Money Market, Balanced, Bond and Equity Portfolios may not:
1. Purchase securities of any issuer (other than
obligations of, or guaranteed by, the United States
Government, its agencies or instrumentalities) if, as a
result, more than 5% of the value of that Portfolio's total
assets would be invested in securities of that issuer.
2. Concentrate more than 25% of the value of its
assets in any one industry; provided, however, that there is
no limitation with respect to investments in obligations
issued or guaranteed by the United States Government or its
agencies and instrumentalities, and repurchase agreements
secured thereby, and in the case of the Money Market
Portfolio, there is no limitation with respect to
investments in money market instruments of banks.
3. Purchase more than 10% of the outstanding voting
securities of any issuer. In addition, the Fund may not in
the aggregate purchase more than 10% of the outstanding
voting securities of any issuer.
4. Purchase the securities of any issuer with less
than three years' continuous operation if, as a result, more
than 5% of the value of that Portfolio's total assets would
be invested in securities of such issuers.
5. Make loans other than through the purchase of money
market instruments and repurchase agreements or by the
purchase of bonds, debentures or other debt securities. The
purchase by a Portfolio of all or a portion of an issue of
publicly or privately distributed debt obligations in
accordance with its investment objective, policies and
restrictions, shall not constitute the making of a loan.
6. Underwrite the securities of other issuers.
7. Purchase from or sell to any of the Fund's officers
or Trustees, or firms of which any of them are members, any
securities (other than capital stock of the Fund), but such
persons or firms may act as brokers for the Fund for
customary commissions.
8. Borrow money, except from banks for temporary or
emergency purposes and then only in an amount up to 10% of
the value of that Portfolio's total assets and except by
engaging in reverse repurchase agreements; provided,
however, that a Portfolio may only engage in reverse
repurchase agreements so long as, at the time a Portfolio
enters into a reverse repurchase agreement, the aggregate
proceeds from outstanding reverse repurchase agreements,
when added to other outstanding borrowings permitted by this
section, do not exceed 33 1/3% of the Portfolio's total
assets. In order to secure any permitted borrowings and
reverse repurchase agreements under this section, each
Portfolio may pledge, mortgage or hypothecate its assets.
9. Make short sales of securities or purchase any
securities on margin except as provided for the Managed
Growth, Equity and Bond Portfolios with respect to options,
futures contracts and options on futures contracts.
10. Write, purchase or sell puts, calls or combinations
thereof except as provided for the Managed Growth, Equity
and Bond Portfolios with respect to options, futures
contracts and options on futures contracts.
11. Invest for the purpose of exercising control or
management of another issuer.
12. Invest in commodities, commodities futures
contracts, or real estate, although it may invest in
securities which are secured by real estate or real estate
mortgages and securities of issuers which invest or deal in
commodities, commodity futures, real estate or real estate
mortgages and provided that the Managed Growth, Equity and
Bond Portfolios may purchase or sell stock index futures,
foreign currency futures, interest rate futures and options
thereon.
13. Invest in interests in oil, gas, or other mineral
exploration or development programs, although it may invest
in securities of issuers which invest in or sponsor such
programs.
14. Purchase or retain securities issued by investment
companies except to the extent permitted by the Investment
Company Act of 1940, as amended, and in connection with a
trustee's/director's deferred compensation plan.
Managed Index Portfolio may not:
1. With respect to 75% of its total assets, purchase
securities of any issuer (other than obligations of, or
guaranteed by, the United States Government, its agencies or
instrumentalities) if, as a result, more than 5% of the
value of the Portfolio's total assets would be invested in
securities of that issuer.
2. Concentrate 25% or more of the value of its total
assets in any one industry; provided, however, that there is
no limitation with respect to investments in obligations
issued or guaranteed by the United States Government or its
agencies and instrumentalities.
3. With respect to 75% of its total assets, purchase
more than 10% of the outstanding voting securities of any
issuer.
4. Make loans except that the Portfolio may engage in
securities lending (provided the value of the securities
loaned from the Portfolio will not exceed 33 1/3% of the
value of its total assets) and repurchase transactions, and
may purchase money market instruments.
5. Underwrite the securities of other issuers.
6. Borrow money, except from banks for temporary or
emergency purposes and then only in an amount up to 33 1/3%
of the value of that Portfolio's total assets. In order to
secure any permitted borrowings under this section, the
Portfolio may pledge, mortgage or hypothecate its assets.
7. Make short sales of securities or purchase any
securities on margin except with respect to options, futures
contracts and options on futures contracts.
8. Invest in commodities or real estate, although it
may invest in securities which are secured by real estate
and securities of issuers which invest or deal in
commodities or real estate, and provided that the Portfolio
may invest in financial futures and options thereon.
9. Issue any senior securities.
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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 US Treasury, such as US Treasury bills,
notes and bonds, are supported by the full faith and credit of the US
Government. Certain obligations issued or guaranteed by an US Government
agency or instrumentality are supported by the full faith and credit of the US
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 US 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 US Treasury. Such obligations include securities issued by the
Bank for Cooperatives, Federal Intermediate Credit Bank, Federal Land Bank,
Federal Home Loan Bank, Federal Home Loan Mortgage Corporation, and Federal
National Mortgage Association.
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DIVIDENDS, DISTRIBUTIONS AND TAXES
- --------------------------------------------------------------------------------
The Funds intend to continue 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. Capital loss carryforwards as of September 30, 1998, for the
Money Market Portfolio was $29,000, Managed Growth Portfolio was $0, Bond
Portfolio was $0, Equity Portfolio was $0, and Managed Index Portfolio was $0.
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 US, a State, the District of Columbia, a US possession, a foreign
government, an international organization, or any political subdivision,
agency or instrumentality of any of the foregoing; US 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 US Government obligations. State law varies
considerably concerning the tax status of dividends derived from US 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.
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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
($172,738,893/172,700,524 shares) $1.00
CSIF Balanced Portfolio
Net asset value per share
($673,906,995/20,768,354 shares) $32.45
Maximum sales charge, Class A
(4.75% of offering price) 1.54
Offering price per share, Class A $33.99
Class B net asset value and offering price per share
($2,540,141/78,440 shares) $32.38
Class C net asset value and offering price per share
($11,482,726/358,253 shares) $32.05
CSIF Bond Portfolio
Net asset value per share
($65,806,586/3,897,466 shares) $16.88
Maximum sales charge
(3.75% of offering price) .63
Offering price per share $17.51
Class B net asset value and offering price per share
($556,972/33,081 shares) $16.84
Class C net asset value and offering price per share
($399,075/23,697 shares) $16.84
CSIF Equity Portfolio
Net asset value per share
($128,683,076/6,319,836 shares) $20.36
Maximum sales charge, Class A
(4.75% of offering price) .97
Offering price per share, Class A $21.33
Class B net asset value and offering price per share
($1,670,337/82,447 shares) $20.26
Class C net asset value and offering price per share
($5,981,089/314,868 shares) $19.00
CSIF Managed Index Portfolio
Net asset value per share
($4,400,710/324,918 shares) $13.54
Maximum sales charge, Class A
(4.75% of offering price) .64
Offering price per share, Class A $14.18
Class B net asset value and offering price per share
($974,587/72,272 shares) $13.48
Class C net asset value and offering price per share
($397,066/29,363 shares) $13.52
Class I net asset value and offering price per share
($14,896,813/1,100,007 shares) $13.54
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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 4.78% and its effective yield was 4.90%.
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 (a-b/cd + 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 5.56% for Class A shares, 4.33% for
Class B shares, and 4.56% 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.
<PAGE>
Return for the Balanced, Bond, Equity, and Managed Index Portfolios'
shares for the periods indicated are as follows:
Periods Ended Class A Class B
September 30, 1998 Total Return Total Return
With/Without Maximum Load With/Without CDSC
Balanced Portfolio
One Year 0.46% 5.50% N/A N/A
Five Years 8.99% 10.05% N/A N/A
Ten Years 9.63% 10.17% N/A N/A
From Inception 11.15% N/A -9.85% -5.10%
(October 21, 1982, for Class A)
(March 31, 1998, for Class B)
Periods Ended Class C
September 30, 1998 Total Return
With/Without CDSC
Balanced Portfolio
One Year 3.35% 4.35%
Five Years N/A N/A
Ten Years N/A N/A
From Inception 9.70% 9.70%
(March 1, 1994, for Class C)
- --------------------------------------------------------------------------------
Periods Ended Class A Class B
September 30, 1998 Total Return Total Return
With/Without Maximum Load With/Without CDSC
Bond Portfolio
One Year 4.38% 8.46% N/A N/A
Five Years 4.84% 5.65% N/A N/A
Ten Years 8.07% 8.48% N/A N/A
From Inception N/A N/A -0.64% 3.36%
(August 24, 1987, for Class A)
(March 31, 1998, for Class B)
- --------------------------------------------------------------------------------
Periods Ended Class C
September 30, 1998 Total Return
With/Without CDSC
Bond Portfolio
One Year N/A N/A
Five Years N/A N/A
Ten Years N/A N/A
From Inception 0.42% 1.75%
(June 1, 1998, for Class C)
- --------------------------------------------------------------------------------
Periods Ended Class A Class B
September 30, 1998 Total Return Total Return
With/Without Maximum Load With/Without CDSC
Equity Portfolio
One Year -19.78% -15.70% N/A N/A
Five Years 5.72% 6.76% N/A N/A
Ten Years 7.73% 8.26% N/A N/A
From Inception N/A N/A -26.11% -22.11
(August 24, 1987, for Class A)
(March 31, 1998, for Class B)
- --------------------------------------------------------------------------------
Periods Ended Class C
September 30, 1998 Total Return
With/Without CDSC
Equity Portfolio
One Year N/A -16.47
Five Years N/A N/A
Ten Years N/A N/A
From Inception -17.30% 4.97%
(March 1, 1994, for Class C)
- --------------------------------------------------------------------------------
Periods Ended Class A Class B
September 30, 1998 Total Return Total Return
With/Without Maximum Load With/Without CDSC
Managed Index Portfolio
One Year N/A N/A N/A N/A
From Inception -14.10% -9.73 -14.63% -10.13%
(August 15, 1998, for Class A)
(April 15, 1998, for Class B)
- --------------------------------------------------------------------------------
Periods Ended Class C
September 30, 1998 Total Return
With/Without CDSC
Managed Index Portfolio
One Year N/A N/A
From Inception -7.82% -6.89%
(June 1, 1998 for Class C)
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, December 31, 1998). 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. Business
information is provided below about the trustees.
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. She is on the Board of Directors of the
Calvert Social Investment Foundation. 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 that 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., Trustee. Executive Vice President and Trustee.
Mr. Guffey is Executive Vice President of Calvert Social Investment Fund. He
is on the Board of Directors 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.
Mr. Guffey has been advised that the Securities and Exchange
Commission ("SEC") has entered an order against him relating to his former
service as a director of Community Bankers Mutual Fund, Inc. This fund is not
connected with any Calvert Fund or the Calvert Group and ceased operations in
September, 1994. Mr. Guffey consented to the entry of the order without
admitting or denying the findings in the order. The order contains findings
(1) that the Community Bankers Mutual Fund's prospectus and statement of
additional information were materially false and misleading because they
misstated or failed to state material facts concerning the pricing of fund
shares and the percentage of illiquid securities in the fund's portfolio and
that Mr. Guffey, as a member of the fund's board, should have known of these
misstatements and therefore violated the Securities Act of 1933; (2) that the
price of the fund's shares sold to the public was not based on the current net
asset value of the shares, in violation of the Investment Company Act of 1940
(the "Investment Company Act"); and (3) that the board of the fund, including
Mr. Guffey, violated the Investment Company Act by directing the filing of a
materially false registration statement. The order directed Mr. Guffey to
cease and desist from committing or causing future violations and to pay a
civil penalty of $5,000. The SEC placed no restrictions on Mr. Guffey's
continuing to serve as a Trustee or Director of mutual funds. DOB: 05/15/48.
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, Senior Vice 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, as well as Senior Vice President of Calvert Social Investment Fund. Ms.
Krumsiek is on the Board of Directors of the Calvert Social Investment
Foundation. 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 and is on the Board of Directors of the
Calvert Social Investment Foundation.
On October 8, 1998, Mr. Mollner declared and filed for personal
bankruptcy protection under Chapter 7 of the Federal Bankruptcy Code. The
cause of Mr. Mollner's financial difficulties was losses sustained in trading
in the options and futures market. 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,
Inc. 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 and Chairman of the Calvert Social
Investment Foundation. 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.
IVY WAFFORD DUKE, Esq., Assistant Secretary. Ms. Duke 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 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: 09/07/68.
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 $43,289 by the Money Market Portfolio, $179,492 by
the Balanced Portfolio, $15,807 by the Bond Portfolio, $45,492 by the Equity
Portfolio, and $943 by the Managed Index 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.
Trustee Compensation Table
Fiscal Year 1998 Aggregate Pension or Total Compensation
Compensation Retirement from Benefits
(unaudited numbers) from Registrant Accrued as Registrant and Fund
for Service part of Complex paid to
as Trustee of Registrant Trustee**
Expenses*
Name of Trustee
Rebecca Adamson $22,878 $5,317 $24,831
Richard L. Baird, Jr. $1,845 $0 $35,800
John G. Guffey, Jr. $11,252 $0 $54,715
Joy V. Jones $30,081 $0 $30,081
Terrence J. Mollner $34,020 $0 $44,731
Sydney Amara Morris $23,631 $12,000 $23,631
D. Wayne Silby $20,375 $0 $60,831
*Ms. Adamson and Rev. Morris have chosen to defer a portion of their
compensation. As of September 30, 1998, total deferred compensation, including
dividends and capital appreciation, was $48,868.45, and $11,410.96, for each
trustee, respectively.
**As of September 30, 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 controlled 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 0.425% 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 above $1 billion; 0.35% of the Bond Portfolio's average
daily net assets; 0.50% of the Equity Portfolio's average daily net assets;
0.30% of the Money Market Portfolio's average daily net assets and 0.60% of
the Managed Index Portfolio's average daily net assets.*
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.
*If the new advisory agreement between the Fund and Calvert Asset Management
Company, Inc. is not approved by the 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.
The Balanced Portfolio has a performance adjustment to the base fee
as follows:
Performance Relative to Index 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 S&P 500 Performance Adjustment
06% but less than 12% 0.07%
12% but less than 18% 0.14%
18% or more 0.20%
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 a subsidiary of the North
Carolina Mutual Life Insurance Company. It receives a subadvisory fee, paid by
the Advisor, of 0.25% of net assets. ***
Atlanta Capital Management Company is owned and operated by six
partners. 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 subadvisory agreements for the Balanced Portfolio are not
approved by the 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. The base rate of 0.25% of net
asset plus or minus a performance fee adjustment as follows:
Performance Relative to S&P 500 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 a subsidiary of the North Carolina
Mutual Life Insurance Company. It receives a subadvisory fee, paid by the
Advisor. The base rate is 0.25% of net asset plus or minus a performance fee
adjustment as follows:
Performance Relative to Russell 3000 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 agreement 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 subadvisor 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 $846,146, respectively. The advisory fees paid to the Advisor by
the Balanced Portfolio for the same years were $4,054,218, $3,739,407, and
$4,374,411, respectively. The advisory fees paid to the Advisor for these
years by the Bond Portfolio were $421,016, $363,612, and $345,357; by the
Equity Portfolio $496,208, $683,046, and $889,599; and by the Managed Index
Portfolio $54,079 (date of inception April 15, 1998).
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 0.275% 0.125%
Bond 0.30% 0.10%
Equity 0.20% 0.10%
Managed Index 0.15% 0.10%
Money Market 0.20% N/A
From its inception through September 30, 1998, Managed Index
Portfolio paid $9,840 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
Balanced $1,765,329
Bond $127,076
Equity $425,952
Managed Index $6,150
Of the distribution expenses paid by Class A Shares of the Balanced,
Bond, Equity, and Managed Index Portfolios in fiscal year 1998, $966,729,
$123,575, $324,734, and $2,476, respectively, was used to compensate dealers
for their share distribution promotional services. $686,974, $1,549, $25,536,
and $984 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:
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 Allowed to
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
net amount retained by CDI (i.e., not reallowed to dealers) for the last 3
fiscal years are:
Fiscal Year 1996
Class A Gross Net
Balanced $1,177,181 $405,789
Bond $161,888 $56,699
Equity $365,789 $129,525
Managed Index $0 $0
Fiscal Year 1997
Class A Gross Net
Balanced $934,782 $331,679
Bond $136,085 $53,362
Equity $557,333 $211,952
Managed Index $0 $0
Fiscal Year 1998
Class A Gross Net
Balanced $969,119 $356,525
Bond $138,075 $54,024
Equity $585,617 $216,176
Managed Index $32,049 $4,026
Fiscal Year 1996 1997 1998
Class B
Balanced NA NA $309
Bond NA NA $0
Equity NA NA $1,517
Managed Index NA NA $164
Fiscal Year 1996 1997 1998
Class C
Balanced NA NA $36
Bond NA NA $0
Equity NA NA $13
Managed Index NA NA $0
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 $693,085 $547,048 $542,108
Equity $352,527 $329,488 $487,723
Bond $0 $0 $0
Managed Index $0 $0 $9,405
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, through its
Advisor and/or Subadvisors, directed brokerage for research services in the
following amounts:
Related
Portfolio Amount of Transactions Commissions
Balanced $484,312,613 $542,108
Equity $313,651,712 $487,723
Bond $0 $0
Managed Index $0 $0
The Portfolio turnover rates for the last two fiscal years are as
follows:
1997 1998
Balanced 215% 185%
Equity 93% 110%
Bond 319% 620%
Managed Index N/A N/A
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 LLP 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
- --------------------------------------------------------------------------------
As of January 19, 1999, the following shareholders owned of record 5%
or more of the class of the Fund shown:
Name and Address % of Ownership
Money Market Portfolio
United Mine Workers of America 5.46%
Washington, D.C.
Fleet National Bank 5.13%
Rochester, New York
Bond Portfolio
Prudential Securities 5.11%, Class B
FBO F. Caplan Trust
Amherst, Massachusetts
Prudential Securities 6.01%, Class B
FBO P. Lichterman
Madison, Wisconsin
Beverly Williams Trust 7.62%, Class C
Chesterfield, Missouri
NFSC FEBO W. Wilkie 8.04%, Class C
Honolulu, Hawaii
Managed Index Portfolio
Robert Thompson 6.63%, Class B
Seattle, Washington
General Teamsters Local #174 24.22%, Class C
Seattle, Washington
Resources Trust IRA 11.86%, Class C
FBO M. Akiyama-Worley
Denver, Colorado
Acacia Retirement Plan 100%, Class I
Bethesda, Maryland
- --------------------------------------------------------------------------------
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.
<PAGE>
LETTER OF INTENT
Date
Calvert Distributors, Inc.
4550 Montgomery Avenue
Bethesda, MD 20814
Ladies and Gentlemen:
By signing this Letter of Intent, or affirmatively marking the Letter
of Intent option on my Fund Account Application Form, I agree to be bound by
the terms and conditions applicable to Letters of Intent appearing in the
Prospectus and the Statement of Additional Information for the Fund and the
provisions described below as they may be amended from time to time by the
Fund. Such amendments will apply automatically to existing Letters of Intent.
I intend to invest in the shares of:_____________________ (Fund or
Portfolio name) during the thirteen (13) month period from the date of my
first purchase pursuant to this Letter (which cannot be more than ninety (90)
days prior to the date of this Letter or my Fund Account Application Form,
whichever is applicable), an aggregate amount (excluding any reinvestments of
distributions) of at least fifty thousand dollars ($50,000) which, together
with my current holdings of the Fund (at public offering price on date of this
Letter or my Fund Account Application Form, whichever is applicable), will
equal or exceed the amount checked below:
__ $50,000 __ $100,000 __ $250,000 __ $500,000 __ $1,000,000
Subject to the conditions specified below, including the terms of
escrow, to which I hereby agree, each purchase occurring after the date of
this Letter will be made at the public offering price applicable to a single
transaction of the dollar amount specified above, as described in the Fund's
prospectus. "Fund" in this Letter of Intent shall refer to the Fund or
Portfolio, as the case may be. No portion of the sales charge imposed on
purchases made prior to the date of this Letter will be refunded.
I am making no commitment to purchase shares, but if my purchases
within thirteen months from the date of my first purchase do not aggregate the
minimum amount specified above, I will pay the increased amount of sales
charges prescribed in the terms of escrow described below. I understand that
4.75% of the minimum dollar amount specified above will be held in escrow in
the form of shares (computed to the nearest full share). These shares will be
held subject to the terms of escrow described below.
From the initial purchase (or subsequent purchases if necessary),
4.75% of the dollar amount specified in this Letter shall be held in escrow in
shares of the Fund by the Fund's transfer agent. For example, if the minimum
amount specified under the Letter is $50,000, the escrow shall be shares
valued in the amount of $2,375 (computed at the public offering price adjusted
for a $50,000 purchase). All dividends and any capital gains distribution on
the escrowed shares will be credited to my account.
If the total minimum investment specified under the Letter is
completed within a thirteen month period, escrowed shares will be promptly
released to me. However, shares disposed of prior to completion of the
purchase requirement under the Letter will be deducted from the amount
required to complete the investment commitment.
Upon expiration of this Letter, the total purchases pursuant to the
Letter are less than the amount specified in the Letter as the intended
aggregate purchases, Calvert Distributors, Inc. ("CDI") will bill me for an
amount equal to the difference between the lower load I paid and the dollar
amount of sales charges which I would have paid if the total amount purchased
had been made at a single time. If not paid by the investor within 20 days,
CDI will debit the difference from my account. Full shares, if any, remaining
in escrow after the aforementioned adjustment will be released and, upon
request, remitted to me.
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.
Name of Dealer
Name of Investor(s)
By - Authorized Signer
Address
Date
Signature of Investor(s)
Date
Signature of Investor(s)
<PAGE>
INVESTMENT ADVISOR
Calvert Asset Management Company, Inc.
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
SHAREHOLDER SERVICE
Calvert Shareholder Services, Inc.
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
PRINCIPAL UNDERWRITER
Calvert Distributors, Inc.
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
TRANSFER AGENT
National Financial Data Services, Inc.
1004 Baltimore
6th Floor
Kansas City, Missouri 64105
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
250 West Pratt Street
Baltimore, Maryland 21201
<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 $5 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. Officer
Broker-Dealer and
4550 Montgomery Avenue Director
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 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
---------------
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 Realty Square, L.L.C. Director
Realty Investments
7315 Wisconsin Avenue
Bethesda, Maryland 20814
---------------
Gardner Montgomery Company Director
Tax Return Preparation Services
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, Ltd. 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 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 Square, L.L.C. Director
Realty Investments
7315 Wisconsin Avenue
Bethesda, Maryland 20814
---------------
The Advisors Group, Ltd. Director
Broker-Dealer and
Investment Advisor
7315 Wisconsin Avenue
Bethesda, Maryland 20814
---------------
Gardner Montgomery Company Director
Tax Return Preparation Services
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
---------------
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
---------------
Victor Frye 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
----------------
The Advisors Group, Ltd. Counsel
Broker-Dealer and and
Investment Advisor Compliance
7315 Wisconsin Avenue Manager
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
------------------
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 underwrites shares of
First Variable Rate Fund for Government Income, Calvert Tax-Free Reserves,
Calvert Social Investment Fund, 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. (formerly named Acacia
Capital Corporation).
(b) Positions of Underwriter's Officers and Directors
Name and Principal Position(s) with Position(s) with
Business Address Underwriter Registrant
Barbara J. Krumsiek Director and President 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 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
Bill Hairgrove Regional Vice President None
Janet Haley Regional Vice President None
Steve Himber Regional Vice President None
Ben Ogbogu Regional Vice President None
Tom Stanton Regional Vice President None
Christine Teske Regional Vice President None
Susan Walker Bender Assistant Secretary Assistant Secretary
Katherine Stoner Assistant Secretary Assistant Secretary
Ivy Wafford Duke Assistant Secretary Assistant Secretary
Victor Frye Assistant Secretary None
and Compliance Officer
(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
Not Applicable
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the Investment
Company Act of 1940, the Registrant certifies that it meets all of the
requirements for effectiveness of this registration statement under Rule
485(b) under the Securities Act and has duly caused this registration
statement to be signed on its behalf by the undersigned, duly authorized, in
the City of Bethesda, and State of Maryland, on the 27th day of January, 1999.
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 1/27/1999
D. Wayne Silby Trustee (Principal Executive Officer)
__________**____________ Executive Vice 1/27/1999
John G. Guffey, Jr. President and Trustee
__________**____________ Senior Vice President 1/27/1999
Barbara J. Krumsiek and Trustee
__________**____________ Principal Accounting 1/27/1999
Ronald M. Wolfsheimer Officer
__________**____________ Trustee 1/27/1999
Rebecca L. Adamson
__________**____________ Trustee 1/27/1999
Richard L. Baird, Jr.
________________________ Trustee 1/27/1999
Joy V. Jones
__________**____________ Trustee 1/27/1999
Terrence J. Mollner
__________**____________ Trustee 1/27/1999
Sydney Amara Morris
__________**____________ Trustee 1/27/1999
Charles T. Nason
** Signed by Susan Bender pursuant to power of attorney, attached hereto.
POWER OF ATTORNEY
I, the undersigned Trustee/Director of Calvert Social Investment Fund
(the "Fund"), hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff,
Susan Walker Bender, Katherine Stoner, Lisa Crossley, and Ivy Wafford Duke my
true and lawful attorneys, with full power to each of them, to sign for me and
in my name in the appropriate capacities, all registration statements and
amendments filed by the Fund with any federal or state agency, and to do all
such things in my name and behalf necessary for registering and maintaining
registration or exemptions from registration of the Fund with any government
agency in any jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things in my
name and behalf to comply with the provisions of all federal, state and
foreign laws, regulations, and policy pronouncements affecting the Fund,
including, but not limited to, the Securities Act of 1933, the Securities
Exchange Act of 1934, the Investment Company Act of 1940, the Investment
Advisers Act of 1940, and all state laws regulating the securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Fund in connection
with any transaction approved by the Board of Trustee/Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the Fund, the
signing is automatically ratified and confirmed by me by virtue of this Power
of Attorney.
WITNESS my hand on the date set forth below.
December 2, 1997
Date /Signature/
Cathy Mulligan Barbara Krumsiek
Witness Name of Trustee/Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Trustee/Director of Calvert Social Investment Fund
(the "Fund"), hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff,
Susan Walker Bender, Katherine Stoner, Lisa Crossley, and Ivy Wafford Duke my
true and lawful attorneys, with full power to each of them, to sign for me and
in my name in the appropriate capacities, all registration statements and
amendments filed by the Fund with any federal or state agency, and to do all
such things in my name and behalf necessary for registering and maintaining
registration or exemptions from registration of the Fund with any government
agency in any jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things in my
name and behalf to comply with the provisions of all federal, state and
foreign laws, regulations, and policy pronouncements affecting the Fund,
including, but not limited to, the Securities Act of 1933, the Securities
Exchange Act of 1934, the Investment Company Act of 1940, the Investment
Advisers Act of 1940, and all state laws regulating the securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Fund in connection
with any transaction approved by the Board of Trustee/Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the Fund, the
signing is automatically ratified and confirmed by me by virtue of this Power
of Attorney.
WITNESS my hand on the date set forth below.
December 6, 1997
Date /Signature/
Ida Maupin Findlay Rebecca L. Adamson
Witness Name of Trustee/Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Trustee/Director of Calvert Social Investment Fund
(the "Fund"), hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff,
Susan Walker Bender, Katherine Stoner, Lisa Crossley, and Ivy Wafford Duke my
true and lawful attorneys, with full power to each of them, to sign for me and
in my name in the appropriate capacities, all registration statements and
amendments filed by the Fund with any federal or state agency, and to do all
such things in my name and behalf necessary for registering and maintaining
registration or exemptions from registration of the Fund with any government
agency in any jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things in my
name and behalf to comply with the provisions of all federal, state and
foreign laws, regulations, and policy pronouncements affecting the Fund,
including, but not limited to, the Securities Act of 1933, the Securities
Exchange Act of 1934, the Investment Company Act of 1940, the Investment
Advisers Act of 1940, and all state laws regulating the securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Fund in connection
with any transaction approved by the Board of Trustee/Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the Fund, the
signing is automatically ratified and confirmed by me by virtue of this Power
of Attorney.
WITNESS my hand on the date set forth below.
May 7, 1997
Date /Signature/
Charles T. Nason Richard L. Baird, Jr.
Witness Name of Trustee/Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Trustee/Director of Calvert Social Investment Fund
(the "Fund"), hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff,
Susan Walker Bender, Katherine Stoner, Lisa Crossley, and Ivy Wafford Duke my
true and lawful attorneys, with full power to each of them, to sign for me and
in my name in the appropriate capacities, all registration statements and
amendments filed by the Fund with any federal or state agency, and to do all
such things in my name and behalf necessary for registering and maintaining
registration or exemptions from registration of the Fund with any government
agency in any jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things in my
name and behalf to comply with the provisions of all federal, state and
foreign laws, regulations, and policy pronouncements affecting the Fund,
including, but not limited to, the Securities Act of 1933, the Securities
Exchange Act of 1934, the Investment Company Act of 1940, the Investment
Advisers Act of 1940, and all state laws regulating the securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Fund in connection
with any transaction approved by the Board of Trustee/Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the Fund, the
signing is automatically ratified and confirmed by me by virtue of this Power
of Attorney.
WITNESS my hand on the date set forth below.
May 7, 1997
Date /Signature/
M. Charito Kruvant John G. Guffey, Jr.
Witness Name of Trustee/Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Trustee/Director of Calvert Social Investment Fund
(the "Fund"), hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff,
Susan Walker Bender, Katherine Stoner, Lisa Crossley, and Ivy Wafford Duke my
true and lawful attorneys, with full power to each of them, to sign for me and
in my name in the appropriate capacities, all registration statements and
amendments filed by the Fund with any federal or state agency, and to do all
such things in my name and behalf necessary for registering and maintaining
registration or exemptions from registration of the Fund with any government
agency in any jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things in my
name and behalf to comply with the provisions of all federal, state and
foreign laws, regulations, and policy pronouncements affecting the Fund,
including, but not limited to, the Securities Act of 1933, the Securities
Exchange Act of 1934, the Investment Company Act of 1940, the Investment
Advisers Act of 1940, and all state laws regulating the securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Fund in connection
with any transaction approved by the Board of Trustee/Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the Fund, the
signing is automatically ratified and confirmed by me by virtue of this Power
of Attorney.
WITNESS my hand on the date set forth below.
November 29, 1997
Date /Signature/
Marybeth Home Terrence J. Mollner
Witness Name of Trustee/Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Trustee/Director of Calvert Social Investment Fund
(the "Fund"), hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff,
Susan Walker Bender, Katherine Stoner, Lisa Crossley, and Ivy Wafford Duke my
true and lawful attorneys, with full power to each of them, to sign for me and
in my name in the appropriate capacities, all registration statements and
amendments filed by the Fund with any federal or state agency, and to do all
such things in my name and behalf necessary for registering and maintaining
registration or exemptions from registration of the Fund with any government
agency in any jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things in my
name and behalf to comply with the provisions of all federal, state and
foreign laws, regulations, and policy pronouncements affecting the Fund,
including, but not limited to, the Securities Act of 1933, the Securities
Exchange Act of 1934, the Investment Company Act of 1940, the Investment
Advisers Act of 1940, and all state laws regulating the securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Fund in connection
with any transaction approved by the Board of Trustee/Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the Fund, the
signing is automatically ratified and confirmed by me by virtue of this Power
of Attorney.
WITNESS my hand on the date set forth below.
May 7, 1997
Date /Signature/
Edwidge Saint Felix Sydney Amara Morris
Witness Name of Trustee/Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Trustee/Director of Calvert Social Investment Fund
(the "Fund"), hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff,
Susan Walker Bender, Katherine Stoner, Lisa Crossley, and Ivy Wafford Duke my
true and lawful attorneys, with full power to each of them, to sign for me and
in my name in the appropriate capacities, all registration statements and
amendments filed by the Fund with any federal or state agency, and to do all
such things in my name and behalf necessary for registering and maintaining
registration or exemptions from registration of the Fund with any government
agency in any jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things in my
name and behalf to comply with the provisions of all federal, state and
foreign laws, regulations, and policy pronouncements affecting the Fund,
including, but not limited to, the Securities Act of 1933, the Securities
Exchange Act of 1934, the Investment Company Act of 1940, the Investment
Advisers Act of 1940, and all state laws regulating the securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Fund in connection
with any transaction approved by the Board of Trustee/Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the Fund, the
signing is automatically ratified and confirmed by me by virtue of this Power
of Attorney.
WITNESS my hand on the date set forth below.
December 2, 1997
Date /Signature/
Freda S. Amar Charles T. Nason
Witness Name of Trustee/Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Trustee/Director of Calvert Social Investment Fund
(the "Fund"), hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff,
Susan Walker Bender, Katherine Stoner, Lisa Crossley, and Ivy Wafford Duke my
true and lawful attorneys, with full power to each of them, to sign for me and
in my name in the appropriate capacities, all registration statements and
amendments filed by the Fund with any federal or state agency, and to do all
such things in my name and behalf necessary for registering and maintaining
registration or exemptions from registration of the Fund with any government
agency in any jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things in my
name and behalf to comply with the provisions of all federal, state and
foreign laws, regulations, and policy pronouncements affecting the Fund,
including, but not limited to, the Securities Act of 1933, the Securities
Exchange Act of 1934, the Investment Company Act of 1940, the Investment
Advisers Act of 1940, and all state laws regulating the securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Fund in connection
with any transaction approved by the Board of Trustee/Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the Fund, the
signing is automatically ratified and confirmed by me by virtue of this Power
of Attorney.
WITNESS my hand on the date set forth below.
December 8, 1997
Date /Signature/
Katherine Stoner D. Wayne Silby
Witness Name of Trustee/Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned officer of Calvert Social Investment Fund, Calvert
World Values Fund, Acacia Capital Corporation, Calvert New World Fund, First
Variable Rate Fund, Calvert Tax-Free Reserves, Calvert Cash Reserves, The
Calvert Fund and Calvert Municipal Fund (each, respectively, the "Fund"),
hereby constitute William M. Tartikoff, Susan Walker Bender, Katherine Stoner,
Lisa Crossley, and Ivy Wafford Duke my true and lawful attorneys, with full
power to each of them, to sign for me and in my name in the appropriate
capacities, all registration statements and amendments filed by the Fund with
any federal or state agency, and to do all such things in my name and behalf
necessary for registering and maintaining registration or exemptions from
registration of the Fund with any government agency in any jurisdiction,
domestic or foreign.
The same persons are authorized generally to do all such things in my
name and behalf to comply with the provisions of all federal, state and
foreign laws, regulations, and policy pronouncements affecting the Fund,
including, but not limited to, the Securities Act of 1933, the Securities
Exchange Act of 1934, the Investment Company Act of 1940, the Investment
Advisers Act of 1940, and all state laws regulating the securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Fund in connection
with any transaction approved by the Board of Trustee/Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the Fund, the
signing is automatically ratified and confirmed by me by virtue of this Power
of Attorney.
WITNESS my hand on the date set forth below.
December 16, 1997
Date /Signature/
William M. Tartikoff Ronald M. Wolfsheimer
Witness Name of Officer
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Exhibit 10
January 27, 1999
Securities and Exchange Commission
Judiciary Plaza
450 Fifth Street, N.W.
Washington, D.C. 20549
Re: Exhibit 10, Form N-1A
Calvert Social Investment Fund
2-75106 and 811-3334
Ladies and Gentlemen:
As counsel to Calvert Group, Ltd., it is my opinion that the
securities being registered by this Post-effective Amendment No. 29 will be
legally issued, fully paid and non-assessable when sold. My opinion is based
on an examination of documents related to Calvert Social Investment Fund (the
"Trust"), including its Declaration of Trust, its By-laws, other original or
Photostat copies of Trust records, certificates of public officials,
documents, papers, statutes, and authorities as deemed necessary to form the
basis of this opinion.
Therefore, I consent to filing this opinion of counsel with the
Securities and Exchange Commission as an Exhibit to the Trust's Post-Effective
Amendment No. 29 to its Registration Statement.
Sincerely,
/s/
Susan Walker Bender
Associate General Counsel
CONSENT OF INDEPENDENT ACCOUNTANTS
We consent to the incorporation by reference in Post-Effective Amendment No.
29 to the Registration Statement of Calvert Social Investment Fund (CSIF Money
Market, CSIF Balanced, CSIF Managed Index, CSIF Equity, and CSIF Bond) (the
"Funds") on Form N-1A (File Number 2-75106 and 811-3334) of our report dated
November 6, 1998 on our audit of the financial statements and financial
highlights of the Funds, which reports are included in the Annual Report to
Shareholders for the year ended September 30, 1998, which is incorporated by
reference in the Registration Statement. We also consent to the reference to
our firm under the caption "Financial Highlights" in the Prospectus and
"Independent Accountants " in the Statement of Additional Information.
/s/
PricewaterhouseCoopers LLP
Baltimore, Maryland
January 27, 1999
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