PROSPECTUS
January 31, 1995, As Revised September 30, 1995
THE CALVERT FUND
CALVERT INCOME FUND
4550 Montgomery Avenue, Bethesda, Maryland 20814
INVESTMENT OBJECTIVE Calvert Income Fund seeks to maximize long-term income, to
the extent consistent with prudent investment management and preservation of
capital, through investment in bonds and other income producing securities.
The Fund offers two classes of shares, each with different expense levels and
sales charges. You may choose to purchase (i) Class A shares, with a sales
charge imposed at the time you purchase the shares ("front-end sales charge");
or (ii) Class C shares which impose neither a front-end sales charge nor a
contingent deferred sales charge. Class C shares are not available through all
dealers. Class C shares have a higher level of expenses than Class A shares,
including higher Rule 12b-1 fees. These alternatives permit you to choose the
method of purchasing shares that is most beneficial to you, depending on the
amount of the purchase, the length of time you expect to hold the shares, and
other circumstances. See "Alternative Sales Options" for further details.
TO OPEN AN ACCOUNT Call your broker, or complete and return the enclosed Account
Application. Minimum investment is $2,000.
ABOUT THIS PROSPECTUS Please read this Prospectus before investing. It is
designed to provide you with information you ought to know before investing and
to help you decide if the Fund's goals match your own. Keep this document for
future reference.
A Statement of Additional Information for the Fund (dated January 31, 1995 and
revised September 30, 1995) has been filed with the Securities and Exchange
Commission and is incorporated by reference. This free Statement is available
upon request from the Fund: 800-368-2748.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION, NOR HAS THE FEDERAL OR
ANY STATE SECURITIES COMMISSION PASSED ON THE ACCURACY OR ADEQUACY OF THIS
PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
SHARES OF THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR ENDORSED
BY, ANY BANK, AND ARE NOT FEDERALLY INSURED BY THE FDIC, THE FEDERAL RESERVE
BOARD, OR ANY OTHER AGENCY. WHEN INVESTORS SELL SHARES OF THE FUND, THE VALUE
MAY BE HIGHER OR LOWER THAN THE AMOUNT ORIGINALLY PAID
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<TABLE>
<CAPTION>
FUND EXPENSES
Class A Class C
<S> <C> <C>
A. Shareholder Transaction Costs
Maximum Sales Charge on Purchases (as a 3.75% None
percentage of offering price)
Contingent Deferred Sales Charge None None
B. Annual Fund Operating Expenses<F1>
Fiscal Year 1994
(as a percentage of net assets, net of
any applicable expense
reimbursement/fee waiver)
Management Fees 0.70% 0.70%
Rule 12b-1 Service and Distribution Fees
0.25% 1.00%
Other Expenses 0.31% 1.13%
Total Fund Operating Expenses 1.26% 2.83%
<FN>
<F1>Expense ratios for Class A shares have been restated to reflect expenses
anticipated for fiscal year 1995.
</FN>
</TABLE>
C. Example: You would pay the following expenses on a $1,000 investment,
assuming (1) 5% annual return and (2) redemption at the end of each period:
<TABLE>
<CAPTION>
1 Year 3 Years 5 Years 10 Years
<S> <C> <C> <C> <C>
Class A<F2> $50 $76 $104 $184
Class C $29 $88 $149 $316
<FN>
<F2>Assumes payment of maximum initial sales charge at time of purchase.
</FN>
</TABLE>
Explanation of Table: The purpose of the table is to assist you in understanding
the various costs and expenses that an investor in the Fund may bear directly
(shareholder transaction costs) or indirectly (annual fund operating expenses).
A. Shareholder Transaction Costs are charges you pay when you buy or sell shares
of the Fund. See "Reduced Sales Charges" at Exhibit A to see if you qualify for
possible reductions in the sales charge. If you request a wire redemption of
less than $1,000, you will be charged a $5 wire fee.
B. Annual Fund Operating Expenses. Management Fees are paid by the Fund to
Calvert Asset Management Company, Inc. ("Investment Advisor") for managing the
Fund's investments and business affairs. The Fund incurs Other Expenses for
maintaining shareholder records, furnishing shareholder statements and reports,
and other services. Management Fees and Other Expenses have already been
reflected in the Fund's share price and are not charged directly to individual
shareholder accounts. Please refer to "Management of the Fund" for further
information.
The Fund's Rule 12b-1 fees include an asset-based sales charge. Thus, it is
possible that long-term shareholders in the 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.
C. Example of Expenses. The example, which is hypothetical, should not be
considered a representation of past or future expenses. Actual expenses and
return may be higher or lower than those shown.
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FINANCIAL HIGHLIGHTS
The following table provides information about the financial history of the
Fund's Class A and C shares. They express the information in terms of a single
share outstanding for the Fund throughout each period. The table has been
audited by those independent accountants whose reports are included in the
Annual Reports to Shareholders of the Fund. The table should be read in
conjunction with the financial statements and their related notes. The current
Annual Report to Shareholders is incorporated by reference into the Statement of
Additional Information.
<TABLE>
<CAPTION>
Class C Shares
From Inception (March 1, 1994)
To September 30, 1994
<S> <C>
Net asset value, beginning of period $17.35
Income from investment operations
Net investment income .57
Net realized and unrealized gain (loss) on (1.67)
investments
Total from investment operations (1.10)
Distributions to shareholders
Dividends from net investment income (.62)
Distribution from capital gains --
Total Distributions (.62)
Total increase (decrease) in net asset value (1.72)
Net asset value, end of period $15.63
Total return<F3> (5.47)%
Ratio of expenses to average net assets 2.65%(a)
Ratio of net income to average net assets 5.62%(a)
Increase reflected in above net investment income 7.29%(a)
ratios due to expense reimbursement
Portfolio turnover 34%
Net assets, end of period $413,187
Number of shares outstanding at end of period (in
thousands) 26
<FN>
<F3>Total return does not reflect deduction of Class A front-end sales charges.
Total return prior to 1989 is not audited.
(a) Annualized
</FN>
</TABLE>
================================================================================
<TABLE>
<CAPTION>
Class A Shares
Year Ended September 30, 1994
<S> <C>
Net asset value, beginning of period $18.41
Income from investment operations
Net investment income 1.16
Net realized and unrealized gain (loss) on (2.42)
investments
Total from investment operations (1.26)
Distributions to shareholders
Dividends from net investment income (1.16)
Distribution from capital gains (.31)
Total Distributions (1.47)
Total increase (decrease) in net asset value (2.73)
Net asset value, end of period $15.68
Total return<F3> (6.94)%
Ratio of expenses to average net assets 1.07%
Ratio of net income to average net assets 6.86%
Increase reflected in above net investment income --
ratios due to expense reimbursement
Portfolio turnover 34%
Net assets, end of period $45,935,905
Number of shares outstanding at end of period (in
thousands) 2,929
<FN>
<F3>Total return does not reflect deduction of Class A front-end sales charges.
Total return prior to 1989 is not audited.
(a) Annualized
</FN>
</TABLE>
================================================================================
<TABLE>
<CAPTION>
Calvert Income Fund Class A Shares
Year Ended September 30,
1993 1992
<S> <C> <C>
Net asset value, beginning of year $17.50 $16.61
Income from investment operations
Net investment income 1.23 1.28
Net realized and unrealized gain on investments .91 .89
Total from investment operations 2.14 2.17
Distributions to shareholders
Dividends from net investment income (1.23) (1.28)
Distribution from capital gains -- --
Total Distributions (1.23) (1.28)
Total increase in net asset value .91 .89
Net asset value, end of year $18.41 $17.50
Total return<F4> 12.47% 13.66%
Ratio of expenses to average net assets 1.00% 1.04%
Ratio of net income to average net assets 6.93% 7.59%
Portfolio turnover 25% 18%
Net assets, end of year $53,134,459 $43,494,326
Number of shares outstanding at end of year (in 2,886 2,486
thousands)
<FN>
<F4>Total return does not reflect deduction of Class A front-end sales charges.
Total return prior to 1989 is not audited.
</FN>
</TABLE>
================================================================================
<TABLE>
<CAPTION>
Calvert Income Fund Class A Shares
Year Ended September 30, 1991
<S> <C>
Net asset value, beginning of year $15.58
Income from investment operations
Net investment income 1.31
Net realized and unrealized gain on investments 1.03
Total from investment operations 2.34
Distributions to shareholders
Dividends from net investment income (1.31)
Distribution from capital gains --
Total Distributions (1.31)
Total increase in net asset value 1.03
Net asset value, end of year $16.61
Total return<F4> 15.72%
Ratio of expenses to average net assets 1.08%
Ratio of net income to average net assets 8.22%
Portfolio turnover 27%
Net assets, end of year $36,412,545
Number of shares outstanding at end of year (in 2,193
thousands)
<FN>
<F4>Total return does not reflect deduction of Class A front-end sales charges.
Total return prior to 1989 is not audited.
</FN>
</TABLE>
================================================================================
<TABLE>
<CAPTION>
Calvert Income Fund Class A Shares
Year Ended September 30,
1990 1989
<S> <C> <C>
New asset value, beginning of year $16.36 $15.70
Income from investment operations
Net investment income 1.36 1.36
Net realized and unrealized gain (loss) on
investments (.78) .71
Total from investment operations .58 2.07
Distributions to shareholders
Dividends from net investment income (1.36) (1.41)
Distribution from capital gains -- --
Total Distributions (1.36) (1.41)
Total increase (decrease) in net asset value (.78) .66
Net asset value, end of year $15.58 $16.36
Total return<F5> 3.63% 13.48%
Ratio of expenses to average net assets 1.05% 1.07%
Ratio of net income to average net assets 8.42% 8.57%
Portfolio turnover 5% 19%
Net assets, end of year $32,201,363 $22,969,095
Number of shares outstanding at end of year (in 2,066 1,404
thousands)
<FN>
<F5>Total return does not reflect deduction of Class A front-end sales charges.
Total return prior to 1989 is not audited.
</FN>
</TABLE>
================================================================================
<TABLE>
<CAPTION>
Calvert Income Fund Class A Shares
Year Ended September 30,
1988 1987
<S> <C> <C>
New asset value, beginning of year $15.29 $17.04
Income from investment operations
Net investment income 1.42 1.51
Net realized and unrealized gain (loss) on .71 (1.61)
investments
Total from investment operations 2.13 (.10)
Distributions to shareholders
Dividends from net investment income (1.42) (1.47)
Distribution from capital gains (.30) (.18)
Total Distributions (1.72) (1.65)
Total increase (decrease) in net asset value .41 (1.75)
Net asset value, end of year $15.70 $15.29
Total return<F6> 14.67% (.84)%
Ratio of expenses to average net assets .94% .85%
Ratio of net income to average net assets 9.07% 9.06%
Increase reflected in above net investment income .25% .25%
ratio due to expense reimbursement
Portfolio turnover 37% 42%
Net assets, end of year $20,374,751 $20,573,546
Number of shares outstanding at end of year (in
thousands) 1,298 1,345
<FN>
<F6>Total return does not reflect deduction of Class A front-end sales charges.
Total return prior to 1989 is not audited.
</FN>
</TABLE>
================================================================================
<TABLE>
<CAPTION>
Calvert Income Fund Class A Shares
Year Ended September 30,
1986 1985
<S> <C> <C>
New asset value, beginning of year $15.78 $14.30
Income from investment operations
Net investment income 1.57 1.72
Net realized and unrealized gain (loss) on 1.26 1.53
investments
Total from investment operations 2.83 3.25
Distributions to shareholders
Dividends from net investment income (1.57) (1.77)
Distribution from capital gains -- --
Total Distributions (1.57) (1.77)
Total increase (decrease) in net asset value 1.26 1.48
Net asset value, end of year $17.04 $15.78
Total return<F7> 18.38% 23.31%
Ratio of expenses to average net assets .85% .82%
Ratio of net income to average net assets 9.16% 10.74%
Increase reflected in above net investment income .33% .61%
ratio due to expense reimbursement
Portfolio turnover 23% 11%
Net assets, end of year $21,455,859 $13,428,901
Number of shares outstanding at end of year (in 1,259 851
thousands)
<FN>
<F7>Total return does not reflect deduction of Class A front-end sales charges.
Total return prior to 1989 is not audited.
</FN>
</TABLE>
================================================================================
INVESTMENT OBJECTIVE AND POLICIES
Calvert Income Fund invests in a variety of fixed-income securities, 65% of
which must be of investment grade quality.
Calvert Income Fund seeks to maximize long-term income, to the extent consistent
with prudent investment management and preservation of capital, primarily
through investment in investment grade bonds and other income-producing
securities. The Fund is nondiversified. Debt securities may be long-term,
intermediate-term, short-term, or any combination thereof, depending on the
Advisor's evaluation of current and anticipated market patterns and trends.
Calvert Income Fund invests 80% of its assets in corporate obligations and other
fixed-income securities. At least 65% of its assets at the date of investment
are rated within the four highest grades established by Moody's Investors
Services, Inc. (Aaa, Aa, A, or Baa), or by Standard and Poor's Corporation (AAA,
AA, A, or BBB), or if not rated, are of comparable quality as determined by the
Advisor. Though still investment grade, securities rated BBB/Baa possess certain
speculative elements and are generally more susceptible to changing market
conditions. All fixed income instruments are subject to interest-rate risk; that
is, when market interest rates rise, the current principal value of a bond will
decline.
The remaining 35% of the Fund's total assets may consist of other debt
securities (see below) including bonds rated below BBB or Baa ("non-investment
grade securities," commonly known as "junk bonds"). With lower rated bonds,
there is a greater possibility that an adverse change in the financial condition
of the issuer may affect its ability to pay principal and interest. In addition,
to the extent the Fund holds any such bonds, it may be negatively affected by
adverse economic developments, increased volatility or a lack of liquidity. See
the Statement of Additional Information, "Non-Investment Grade Debt Securities,"
and bond ratings.
Calvert Income Fund may also purchase obligations issued or guaranteed as to
principal by the U.S. Government or its agencies or instrumentalities;
certificates of deposit, time deposits, and bankers' acceptances of U.S. banks
and their branches located outside of the U.S. and of U.S. branches of foreign
banks, provided that the bank has total assets of at least one billion dollars
or the equivalent in other currencies; commercial paper which at the date of
investment is rated Prime-2 or better by Moody's, A-2 or better by Standard &
Poor's, or, if not rated, is of comparable quality as determined by the Advisor;
and any of the above securities subject to repurchase agreements with recognized
securities dealers and banks. Up to 20% of the value of the Fund's total assets
may consist of other debt securities (including securities convertible into or
carrying warrants to purchase common stock or other equity securities) and
income-producing preferred and common stocks.
GNMA Certificates
GNMA Certificates, or GNMAs, are mortgage-backed securities representing
ownership of mortgage or construction loans that are issued by lenders such as
mortgage bankers, commercial banks and savings and loan associations and are
either insured by the Federal Housing Administration or guaranteed by the
Veterans Housing Administration. The GNMA may be secured by a single mortgage,
such as a large multi-family housing development, or, more typically, by a
"pool" or group of single-family housing mortgages.
Once approved by GNMA, the timely payment of interest and principal on each
mortgage is guaranteed by GNMA and backed by the full faith and credit of the
U.S. Government. GNMAs differ from bonds in that principal is paid back monthly
by the borrower over the term of the loan rather than returned in a lump sum at
maturity. GNMAs are called "pass-through" securities because both interest and
principal payments (including prepayments) are passed through to the holder of
the GNMA. Upon receipt, principal payments will be reinvested by the Fund in
additional securities at the then prevailing interest rate. The amount of any
premium that may be paid upon purchase of a GNMA is not guaranteed. The Advisor
will attempt, through careful evaluation of available GNMA issues and prevailing
market conditions, to invest in GNMAs which provide a high income return but are
not subject to substantial risk of loss of principal. Accordingly, the Advisor
may forgo the opportunity to invest in certain issues of GNMAs which would
provide a high current income yield if the Advisor believes that such issues
would be subject to a risk of prepayment or loss of principal over the long-term
that would outweigh the short-term increment in yield.
Collateralized Mortgage Obligations
Collateralized mortgage obligations ("CMOs") are bonds which are the general
obligations of the bond issuer. CMOs may be issued by governmental entities,
such as the Federal Home Loan Mortgage Corporation (FHLMC), and by
non-governmental entities, such as banks and other mortgage lenders. CMOs
generally are secured by collateral consisting of individual mortgages or a pool
of mortgages. CMOs are not direct obligations of the Government.
FNMA and FHLMC Certificates
Each Fund may invest in pass-through certificates issued by the Federal National
Mortgage Association ("FNMA") and Federal Home Loan Mortgage Corporation
("FHLMC"). Unlike GNMAs, which are typically interests in pools of mortgages
insured or guaranteed by government agencies, FNMA and FHLMC certificates
represent undivided interests in pools of conventional mortgage loans.
Nondiversified
There may be risks associated with the Fund being nondiversified. Specificially,
since a relatively high percentage of the assets of the Fund may be invested in
the obligations of a limited number of issuers, the value of the shares of the
Fund may be more susceptible to any single economic, political or regulatory
event than the shares of a diversified fund would be.
Financial Futures, Options, and Other Investment Techniques
The Fund can use various techniques to increase or decrease its exposure to
changing security prices, interest rates, currency exchange 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 currency exchange contracts, or 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's portfolio to
adjust the risk and return characteristics of the Fund's portfolio. If the
Advisor judges market conditions incorrectly or employs a strategy that does not
correlate well with the 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 the Fund and may involve a
small investment of cash relative to the magnitude of the risk assumed. Any
instruments determined to be illiquid are subject to the Fund's 15% restriction
on illiquid securities. See the Statement of Additional Information for more
detail about these strategies.
The Fund may enter into repurchase agreements and may purchase securities on a
forward or when-issued basis.
In a repurchase agreement, the Fund buys a security subject to the right and
obligation to sell it back at a higher price. These transactions must be fully
secured at all times, but they involve some credit risk to the Fund if the other
party defaults on its obligation and the Fund is delayed or prevented from
liquidating the collateral.
Purchasing obligations for future delivery or on a "when-issued" basis may
increase the Fund's overall investment exposure and involves a risk of loss if
the value of the securities declines prior to the settlement date. The
transactions are fully secured at all times.
Foreign Investments
The Fund may invest up to 20% of its assets in securities of foreign issuers,
and hedge its foreign securities holdings against anticipated adverse moves in
foreign currency exchange rates. The Fund may use either the spot (cash)
markets, forward contracts, or currency financial futures and options
transactions. It is impossible to forecast with precision the foreign currency
values, and the Fund could incur a loss on such currency transactions if the
market moves against the position it has taken. Securities of foreign issuers
may offer greater potential for capital appreciation or income than the
securities of domestic issuers and may involve investment risks that are greater
than those inherent in the securities of domestic issuers. Such differences
might possibly result from future political and economic developments,
disparities in economic systems, and imposition of foreign governmental
restrictions. There may also be less publicly available information about a
foreign issuer than about a domestic issuer; foreign issuers are not generally
subject to uniform auditing, accounting and reporting requirements comparable to
those applicable to domestic issuers.
Other Policies
The Fund may borrow money from banks as a temporary measure for extraordinary or
emergency purposes. An explanation of this and the policies below is set forth
in the Statement of Additional Information.
The Fund may lend its portfolio securities to member firms of the New York Stock
Exchange and commercial banks with assets of $1 billion or more, but only if the
value of the securities loaned from a Fund will not exceed one-third of the
Fund's assets.
The Fund has adopted certain fundamental investment restrictions which are
discussed in detail in the Statement of Additional Information. Unless
specifically noted otherwise, the investment objective, policies and
restrictions of the Fund are fundamental and may not be changed without
shareholder approval.
Although U.S. Government-backed obligations in the Fund's portfolio may be
guaranteed by the Government, the Fund's net asset value per share and yield are
not guaranteed and will change in response to market conditions. There can be no
assurance that the Fund will be successful in meeting its investment objective.
YIELD AND TOTAL RETURN
The Fund may advertise yield and total return for each class.
Yield measures the current investment performance for each class of the Fund,
that is, the rate of income on its portfolio investments divided by the share
price. Yield is computed by annualizing the result of dividing the net
investment income per share over a 30-day period by the maximum offering price
per share on the last day of that period. Yields are calculated according to
accounting methods that are standardized for all stock and bond funds.
Both yield and total return are based on historical results and are not intended
to indicate future performance.
Total return is calculated separately for each class. It includes not only the
effect of income dividends but also any change in net asset value, or principal
amount, during the stated period. The total return of a class shows its overall
change in value, including changes in share price and assuming all of the class'
dividends and capital gain distributions are reinvested. A cumulative total
return reflects the class' performance over a stated period of time. An average
annual total return reflects the hypothetical annual compounded return that
would have produced the same cumulative total return if the performance had been
constant over the entire period. Because average annual returns tend to smooth
out variations in the returns, you should recognize that they are not the same
as actual year-by-year results. Both types of total return usually will include
the effect of paying the front-end sales charge, in the case of Class A shares.
Of course, total returns will be higher if sales charges are not taken into
account. Quotations of "overall return" do not reflect deduction of the sales
charge. You should consider overall return figures only if you qualify for a
reduced sales charge, or for purposes of comparison with comparable figures
which also do not reflect sales charges, such as mutual fund averages compiled
by Lipper Analytical Services, Inc. Further information about the Fund's
performance is contained in its Annual Report to Shareholders, which may be
obtained without charge.
MANAGEMENT OF THE FUND
The Trust's Board of Trustees supervises the Trust's activities and reviews its
contracts with companies that provide it with services.
Calvert Income Fund is a series of The Calvert Fund (the "Trust"), an open-end
management investment company organized as a Massachusetts business trust on
March 15, 1982. The other series of the Fund are Calvert Strategic Growth Fund
and Calvert U.S. Government Fund.
The Trust is 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 of the Fund you own. Matters affecting classes
differently, such as Distribution Plans, will be voted on separately by the
affected class(es).
Portfolio Managers
Investment selections for the Fund are made by Colleen M. Denzler, C.F.A., and
Stephen N. Van Order. Ms. Denzler has been with the Calvert Group since 1986,
and has been a member of the Portfolio Investment Department since January 1987.
She is a member of the Institute of Chartered Financial Analysts and the
Washington Society of Investment Analysts. Mr. Van Order joined Calvert Group in
October 1992 as the head of the trading desk. He oversees the day-to-day
investments and operations of the department and participates in setting market
and portfolio strategy. Previously, Mr. Van Order was Director of Long Term
Funding at Federal National Mortgage Association (Fannie Mae). In his former
capacity, Mr. Van Order was responsible for Fannie Mae's long term borrowing
programs, hedging programs and debt marketing program. Both have managed the
Fund since early 1995.
Calvert Group is one of the largest investment management firms in the
Washington, D.C. area.
Calvert Group, Ltd., parent of the Fund's investment advisor, transfer agent,
and distributor, is a subsidiary of Acacia Mutual Life Insurance Company of
Washington, D.C. Calvert Group is one of the largest investment management firms
in the Washington, D.C. area. Calvert Group, Ltd. and its subsidiaries are
located at 4550 Montgomery Avenue, Suite 1000N, Bethesda, Maryland 20814. As of
December 31, 1994, Calvert Group managed and administered assets in excess of
$4.2 billion and more than 200,000 shareholder and depositor accounts.
Calvert Asset Management serves as Advisor to the Fund.
Calvert Asset Management Company, Inc. (the "Advisor") is the Fund's investment
advisor. The Advisor provides the Fund with investment supervision and
management; administrative services and office space; furnishes executive and
other personnel to the Fund; and pays the salaries and fees of all Trustees who
are affiliated persons of the Advisor. The Advisor may also assume and pay
certain advertising and promotional expenses of the Fund and reserves the right
to compensate broker-dealers in return for their promotional or administrative
services. The Advisor has agreed to limit the Fund's expenses to the most
restrictive state limitation in effect.
The Advisor receives a fee based on a percentage of the Fund's assets.
For its services during the fiscal year ended September 30, 1994, the Advisor
was entitled pursuant to the Investment Advisory Agreement, to receive an
investment advisory fee of 0.70% of the Fund's respective average daily net
assets.
Calvert Distributors, Inc. serves as underwriter to market the Fund's shares.
Calvert Distributors, Inc. ("CDI") is the Fund's principal underwriter and
distributor. Under the terms of its underwriting agreement with the Fund, CDI
markets and distributes the Fund's shares and is responsible for payment of
commissions and service fees to broker-dealers, banks, and financial services
firms, preparation of advertising and sales literature, and printing and mailing
of prospectuses to prospective investors.
The transfer agent keeps your account records.
Calvert Shareholder Services, Inc. is the Fund's transfer, dividend disbursing
and shareholder servicing agent.
SHAREHOLDER GUIDE
Opening An Account
You can buy shares of the Fund in several ways which are described here and in
the chart below.
An account application accompanies this prospectus. A completed and signed
application is required for each new account you open, regardless of the method
you choose for making your initial investment. Additional forms may be required
from corporations, associations, and certain fiduciaries. If you have any
questions or need extra applications, call your broker, or Calvert Group at
800-368-2748. Be sure to specify which class you wish to purchase.
To invest in any of Calvert's tax-deferred retirement plans, please call Calvert
Group at 800-368-2748 to receive information and the required separate
application.
Alternative Sales Options
The Fund offers two classes of shares:
Class A Shares - Front End Load Option
Class A shares are sold with a front-end sales charge at the time of purchase.
Class A shares are not subject to a sales charge when they are redeemed.
Class C shares - Level Load Option
Class C shares are sold without a sales charge at the time of purchase or
redemption.
Class C shares have higher expenses
The Fund bears some of the costs of selling its shares under Distribution Plans
adopted with respect to its Class A and Class C shares pursuant to Rule 12b-1
under the 1940 Act. Payments under the Class A Distribution Plan are limited to
a maximum of 0.50% annually of the average daily net asset value of Class A. The
Class C Distribution Plan provides for the payment of an annual distribution fee
to CDI of up to 0.75%, plus a service fee of up to 0.25%, for a total of 1.00%
of the average daily net assets attributable to their respective classes.
Considerations for deciding which class of shares to buy
Income distributions for Class A shares will probably be higher than those for
Class C shares, as a result of the distribution expenses described above. (See
also "Total Return.") You should consider Class A shares if you qualify for a
reduced sales charge under Class A or if you plan to hold the shares for several
years.
Class A Shares
Class A shares are offered at net asset value plus a front-end sales charge as
follows:
Concession to
As a % of Net Dealers as a %
As a % of Amount Invested of Amount
Amount of Investment Offering Price Invested
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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% 0.25%*
*For new investments (new purchases but not exchanges) of $1 million or more a
broker-dealer will have the choice of being paid a finder's fee by CDI in one of
the following methods: (1) CDI may pay a broker-dealer, on a monthly basis for
12 months, an annual rate of 0.30%. Payments will be made monthly at the rate of
0.025% of the amount of the investment, less redemptions; or (2) CDI may pay a
broker-dealer 0.25% of the amount of the purchase; however, CDI reserves the
right to recoup any portion of the amount paid to the dealer if the investor
redeems some or all of the shares from the Fund within thirteen months of the
time of purchase.
Sales charges on Class A shares may be reduced or eliminated in certain cases.
See Exhibit A to this prospectus.
The sales charge is paid to CDI, which in turn normally reallows a portion to
your broker-dealer. Upon written notice to dealers with whom it has dealer
agreements, CDI may reallow up to the full applicable sales charge. Dealers to
whom 90% or more of the entire sales charge is reallowed may be deemed to be
underwriters under the Securities Act of 1933.
In addition to any sales charge reallowance or finder's fee, your broker-dealer,
or other financial service firm through which your account is held, currently
will be paid periodic service fees at an annual rate of up to 0.25% of the
average daily net asset value of Class A shares held in accounts maintained by
that firm.
Class A Distribution Plan
The Fund has adopted a Distribution Plan with respect to its Class A shares (the
"Class A Distribution Plan"), which provides for payments at a maximum annual
rate of 0.50% of the average daily net asset value of the Fund's Class A shares
to pay expenses associated with the distribution and servicing. Amounts paid by
the Fund to CDI under the Class A Distribution Plan are used to pay to dealers
and others, including CDI salespersons who service accounts, service fees at an
annual rate of up to 0.25% of the average daily net asset value of Class A
shares, and to pay CDI for its marketing and distribution expenses, including,
but not limited to, preparation of advertising and sales literature and the
printing and mailing of prospectuses to prospective investors. During the fiscal
year ended September 30, 1994, Class A Distribution Plan expenses for the Fund
were 0.06%.
Each of the Distribution Plans may be terminated at any time by vote of the
Independent Trustees or by vote of a majority of the outstanding voting shares
of the respective class.
Class C Shares
Class C shares are not available through all dealers. Class C shares are offered
at net asset value, without a front-end sales charge or a contingent deferred
sales charge. Class C expenses are higher than those of Class A.
Class C Distribution Plan
The Fund has adopted a Distribution Plan with respect to its Class C shares (the
"Class C Distribution Plan"), which provides for payments at an annual rate of
up to 1.00% of the average daily net asset value of Class C shares, to pay
expenses of the distribution and servicing of Class C shares. Amounts paid by
the Fund under the Class C Distribution Plan are currently used by CDI to pay
dealers and other selling firms quarterly compensation at an annual rate of up
to 0.75%, plus a service fee, as described above under "Class A Distribution
Plan," of up to 0.25%, of the average daily net asset value of each share sold
by such others. For the fiscal year ended September 30, 1994, Class C
Distribution Plan expenses were 1.00% for the Fund.
Arrangements with Broker-Dealers and Others
CDI may also pay additional concessions, including non-cash promotional
incentives, such as merchandise or trips, to dealers employing registered
representatives who have sold or are expected to sell a minimum dollar amount of
shares of the Fund and/or shares of other Funds underwritten by CDI. CDI may
make expense reimbursements for special training of a dealer's registered
representatives, advertising or equipment, or to defray the expenses of sales
contests. Eligible marketing and distribution expenses may be paid pursuant to
the Fund's Rule 12b-1 Distribution Plan.
Dealers or others may receive different levels of compensation depending on
which class of shares they sell. Payments pursuant to a Distribution Plan are
included in the operating expenses of the class.
HOW TO BUY SHARES
(BE SURE TO SPECIFY WHICH CLASS YOU ARE BUYING)
Method New Accounts Additional Investments
By Mail $2,000 minimum $250 minimum
Please make your check Please make your check
payable to the Fund and payable to the Fund and
mail it with your mail it with your
application to: investment slip to:
Calvert Group Calvert Group
P.O. Box 419544 P.O. Box 419739
Kansas City, MO 64179-6542 Kansas City, MO 64105-6739
By Registered, Certified, or Overnight Mail:Calvert Group
c/o NFDS, 6th Floor
104 Baltimore
Kansas City, MO 64105-1807
Through Your Broker $2,000 minimum $250 minimum
At the Calvert Visit the Calvert Branch Office to make investments
Branch Office by check. See back cover page for location.
FOR ALL OPTIONS BELOW, PLEASE CALL YOUR BROKER, OR CALVERT GROUP AT 800-368-2745
By Exchange $2,000 minimum $250 minimum
(From your account in another Calvert Group Fund)
When opening an account by exchange, your new account must be established with
the same name(s), address and taxpayer identification number as your existing
Calvert account.
By Bank Wire $2,000 minimum $250 minimum
By Calvert Money Not Available for $50 minimum
Controller* Initial Investment
*Please allow sufficient time for Calvert Group to process your initial request
for this service, normally 10 business days. The maximum transaction amount is
$300,000, and your purchase request must be received by 4:00 p.m. Eastern time.
NET ASSET VALUE
Net asset value per share ("NAV)" refers to the worth of one share. NAV is
computed by adding the value of all portfolio holdings, plus other assets,
deducting liabilities and then dividing the result by the number of shares
outstanding. The NAVs of each class will vary daily based on the market values
of the Fund's investments.
Portfolio securities and other assets are valued based on market quotations,
except that securities maturing within 60 days are valued at amortized cost. If
quotations are not available, securities are valued by a method that the Board
of Trustees believes accurately reflects fair value.
The NAV for the Fund is calculated at the close of the Fund's business day,
which coincides with the closing of the regular session of the New York Stock
Exchange (normally 4:00 p.m. Eastern time). The Fund is open for business each
day the New York Stock Exchange is open. All purchases of Fund shares will be
confirmed and credited to your account in full and fractional shares (rounded to
the nearest 1/1000 of a share).
WHEN YOUR ACCOUNT WILL BE CREDITED
Before you buy shares, please read the following information to make sure your
investment is accepted and credited properly.
Your purchase will be processed at the next offering price based on the next net
asset value calculated after your order is received and accepted. If your
purchase is received by 4:00 p.m. Eastern time, your account will be credited on
the day of receipt. If your purchase is received after 4:00 p.m. Eastern time,
it will be credited the next business day. All purchases must be made in U.S.
dollars and checks must be drawn on U.S. banks. No cash will be accepted. The
Fund reserves the right to suspend the offering of shares for a period of time
or to reject any specific purchase order. If your check does not clear, your
purchase will be cancelled and you will be charged a $10 fee plus costs incurred
by the Fund. When you purchase by check or with Calvert Money Controller, the
Fund can hold payment on redemptions until it is reasonably satisfied that the
investment is collected (normally 10 business days). To avoid this collection
period, you can wire federal funds from your bank, which may charge you a fee.
Certain financial institutions or broker-dealers which have entered into a sales
agreement with the Distributor may enter confirmed purchase orders on behalf of
customers by phone, with payment to follow within a number of days of the order
as specified by the program. If payment is not received in the time specified,
the financial institution could be held liable for resulting fees or losses.
EXCHANGES
You may exchange shares of the Fund for shares of other Calvert Group Funds.
If your investment goals change, the Calvert Group Family of Funds has a variety
of investment alternatives that includes common stock funds, tax-exempt and
corporate bond funds, and money market funds. The exchange privilege is a
convenient way to buy shares in other Calvert Group Funds in order to respond to
changes in your goals or in market conditions. However, to protect a Fund's
performance and to minimize costs, Calvert Group discourages frequent exchanges
and may prohibit additional purchases of Fund shares by persons engaged in too
many short-term trades. Before you make an exchange from a Fund or Portfolio,
please note the following:
Call your broker or a Calvert representative for information and a prospectus
for any of Calvert's other Funds registered in your state. Read the prospectus
of the Fund or Portfolio into which you want to exchange for relevant
information, including class offerings.
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 on the
transaction.
Complete and sign an application for an account in that Fund or Portfolio,
taking care to register your new account in the same name and taxpayer
identification number as your existing Calvert account(s). Exchange instructions
may then be given by telephone if telephone redemptions have been authorized and
the shares are not in certificate form.
Shares on which you have already paid a sales charge at Calvert Group and shares
acquired by reinvestment of dividends or distributions may be exchanged into
another Fund at no additional charge.
Shareholders (and those managing multiple accounts) who make two purchases and
two exchange redemptions of shares of the same Portfolio during any 6-month
period will be given written notice that they may be prohibited from making
additional investments. This policy does not prohibit a shareholder from
redeeming shares of the Fund, and does not apply to trades solely among money
market funds.
The Fund reserves the right to terminate or modify the exchange privilege with
60 days' written notice.
OTHER CALVERT GROUP SERVICES
Calvert Information Network
24 hour yield and prices
Calvert Group has a round-the-clock telephone service that lets existing
customers use a push button phone to obtain prices, performance information,
account balances, and authorize certain transactions.
Calvert Money Controller
Calvert Money Controller eliminates the delay of mailing a check or the expense
of wiring funds. You can request this free service on your application.
This service allows you to authorize electronic transfers of money to purchase
or sell shares. You use Calvert Money Controller like an "electronic check" to
move money ($50 to $300,000) between your bank account and your Calvert Group
account with one phone call. Allow one or two business days after the call for
the transfer to take place; for money recently invested, allow normal check
clearing time (up to 10 business days) before redemption proceeds are sent to
your bank.
You may also arrange systematic monthly or quarterly investments (minimum $50)
into your Calvert Group account. After you give us proper authorization, your
bank account will be debited to purchase Fund shares. A debit entry will appear
on your bank statement. Share purchases made through Calvert Money Controller
will be subject to the applicable sales charge. If you would like to make
arrangements for systematic monthly or quarterly redemptions from your Calvert
Group account, call your broker or Calvert Group for a Money Controller
Application.
Telephone Transactions
Calvert may record all telephone calls.
If you have telephone transaction privileges, you may purchase, redeem, or
exchange shares, wire funds and use Calvert Money Controller by telephone. You
automatically have telephone privileges unless you elect otherwise. The Fund,
the transfer agent and their affiliates are not liable for acting in good faith
on telephone instructions relating to your account, so long as they follow
reasonable procedures to determine that the telephone instructions are genuine.
Such procedures may include recording the telephone calls and requiring some
form of personal identification. You should verify the accuracy of telephone
transactions immediately upon receipt of your confirmation statement.
Optional Services
Complete the "Option" sections of the application for the easiest way to
establish services.
The easiest way to establish optional services on your Calvert Group account is
to select the options you desire when you complete your account application. If
you wish to add other options later, you may have to provide us with additional
information and a signature guarantee. Please call Calvert Investor Relations at
800-368-2745 for further assistance. For our mutual protection, we may require a
signature guarantee on certain written transaction requests. A signature
guarantee verifies the authenticity of your signature, and may be obtained from
any bank, savings and loan association, credit union, trust company,
broker-dealer firm or member of a domestic stock exchange. A signature guarantee
cannot be provided by a notary public.
Householding of General Mailings
Householding reduces Fund expenses and saves paper and trees for the
environment.
If you have multiple accounts with Calvert, you may receive combined mailings of
some shareholder information, such as semi-annual and annual reports. Please
contact Calvert Investor Relations at 800-368-2745 to receive additional copies
of information.
Special Services and Charges
The 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 research fee for these special
services.
If you are purchasing shares of the Fund through a program of services offered
by a broker-dealer or financial institution, you should read the program
materials in conjunction with this Prospectus. Certain features may be modified
in these programs, and administrative charges may be imposed by the
broker-dealer or financial institution for the services rendered.
Tax-Saving Retirement Plans
Contact Calvert Group for complete information kits discussing the plans, and
their benefits, provisions and fees.
Calvert Group can set up your new account under one of several tax-deferred
plans. These plans let you invest for retirement and shelter your investment
income from current taxes. Minimums may differ from those listed in the chart on
page _____. Also, reduced sales charges may apply. See "Exhibit A - Reduced
Sales Charges."
Individual retirement accounts (IRAs): available to anyone who has earned
income. You may also be able to make investments in the name of your spouse, if
your spouse has no earned income.
Qualified Profit-Sharing and Money-Purchase Plans (including 401(k) Plans):
available to self-employed people and their partners, or to corporations and
their employees.
Simplified Employee Pension Plan (SEP-IRA): available to self-employed people
and their partners, or to corporations. Salary reduction pension plans (SAR-SEP
IRAs) are also available to employers with 25 or fewer employees.
403(b)(7) Custodial Accounts: available to employees of most non-profit
organizations and public schools and universities.
SELLING YOUR SHARES
You may redeem all or a portion of your shares on any business day. Your shares
will be redeemed at the next net asset value calculated after your redemption
request is received and accepted. See the chart below for specific requirements
necessary to make sure your redemption request is acceptable. Remember that the
Fund may hold payment on the redemption of your shares until it is reasonably
satisfied that investments made by check or by Calvert Money Controller have
been collected (normally up to 10 business days).
Redemption Requirements To Remember
To ensure acceptance of your redemption request, please follow the procedures
described here and below.
Once your shares are redeemed, the proceeds will normally be sent to you on the
next business day, but if making immediate payment could adversely affect the
Fund, it may take up to seven (7) days. Calvert Money Controller redemptions
generally will be credited to your bank account on the first or second business
day after your phone call. When the New York Stock Exchange is closed (or when
trading is restricted) for any reason other than its customary weekend or
holiday closings, or under any emergency circumstances as determined by the
Securities and Exchange Commission, redemptions may be suspended or payment
dates postponed.
Minimum account balance is $1,000.
Please maintain a balance in your account of at least $1,000, per class. If, due
to redemptions, the account falls below $1,000, or you fail to invest at least
$1,000, your account may be closed and the proceeds mailed to you at the address
of record. You will be given notice that your account will be closed after 30
days unless you make an additional investment to increase your account balance
to the $1,000 minimum.
HOW TO SELL YOUR SHARES
By Mail To:
Calvert Group
P.O. Box 419544
Kansas City, MO
64179-6544
You may redeem available shares from your account at any time by sending a
letter of instruction, including your name, account and Fund number, the number
of shares or dollar amount, and where you want the money to be sent. Additional
requirements, below, may apply to your account. The letter of instruction must
be signed by all required authorized signers. If you want the money to be wired
to a bank not previously authorized, then a voided bank check must be enclosed
with your letter. If you do not have a voided check or if you would like funds
sent to a different address or another person, your letter must be signature
guaranteed.
Type of
Registration Requirements
Corporations, Associations Letter of instruction and a corporate resolution,
signed by person(s) authorized to act on the
account, accompanied by signature guarantee(s).
Trusts Letter of instruction signed by the Trustee(s)
(as Trustee), with a signature guarantee. (If the
Trustee's name is notregistered on your account,
provide a copy of the trust document, certified
within the last 60 days.)
By Telephone
Please call 800-368-2745. You may redeem shares from your account by telephone
and have your money mailed to your address of record or wired to an address or
bank you have previously authorized. A charge of $5 is imposed on wire transfers
of less than $1,000. See "Telephone Transactions" on page ___.
Calvert Money Controller
Please allow sufficient time for Calvert Group to process your initial request
for this service (normally 10 business days). You may also authorize automatic
fixed amount redemptions by Calvert Money Controller. All requests must be
received by 4:00 p.m. (Eastern time). Accounts cannot be closed by this service.
Exchange to Another Calvert Group Fund
You must meet the minimum investment requirement of the other Calvert Group Fund
or Portfolio. You can only exchange between accounts with identical names,
addresses and taxpayer identification number, unless previously authorized with
a signature-guaranteed letter.
Systematic Check Redemptions
If you maintain an account with a balance of $10,000 or more, you may have up to
two (2) regular checks for a fixed amount sent to you on the 15th of each month
simply by sending a letter with all the information, including your account
number, and the dollar amount ($100 minimum). If you would like a regular check
mailed to another person or place, your letter must be signature-guaranteed.
Through your Broker
If your account is held in your broker's name ("street name"), you should
contact your broker directly to transfer, exchange or redeem shares.
DIVIDENDS, CAPITAL GAINS AND TAXES
Each year, the Fund distributes substantially all of its net investment income
and capital gains to shareholders.
Dividends from the Fund's net investment income are declared and paid on a
monthly basis. Net investment income consists of the interest income, net
short-term capital gains, if any, and dividends declared and paid on
investments, less expenses. Distributions of the Fund's net short-term capital
gains (treated as dividends for tax purposes) and its net long-term capital
gains, if any, are normally declared and paid by the Fund once a year; however,
the Fund does 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 generally
anticipated to be higher for Class A shares.
Dividend and Distribution Payment Options.
Dividends and any distributions are automatically reinvested in the same
Portfolio at net asset value (no sales charge), unless you elect to have the
dividends of $10 or more paid in cash (by check or by Calvert Money Controller).
Dividends and distributions may be automatically invested in an identically
registered account with the same account number in any other Calvert Group Fund
at net asset value. If reinvested in the same Fund account, new shares will be
purchased at net asset value on the reinvestment date, which is generally 1 to 3
days prior to the payment date. You must notify the Fund in writing prior to the
record date to change your payment options. If you elect to have dividends
and/or distributions paid in cash, and the U.S. Postal Service cannot deliver
the check, or if it remains uncashed for six months, it, as well as future
dividends and distributions, will be reinvested in additional shares.
"Buying a Dividend"
At the time of purchase, the share price of the Fund may reflect undistributed
income, capital gains or unrealized appreciation of securities. Any income or
capital gains from these amounts which are later distributed to you are fully
taxable. On the record date for a distribution, the Fund's 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, the Fund will mail you Form 1099-DIV indicating the federal tax
status of dividends and capital gain distributions paid to you by the Fund
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 three months prior 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 Fund
shares.
You may realize a capital gain or loss when you sell or exchange shares.
If you sell or exchange your Fund shares you will have a short or long-term
capital gain or loss, depending on how long you owned the shares which were
sold. In January, the Fund will mail you Form 1099-B indicating the date of and
proceeds from all sales, including exchanges. You should keep your annual
year-end account statements to determine the cost (basis) of the shares to
report on your tax returns.
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 U.S. 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 the
Fund to withhold 31% of your dividends and certain redemptions. In addition, you
may be subject to a fine. You will also be prohibited from opening another
account by exchange. If this TIN information is not received within 60 days
after your account is established, your account may be redeemed at the current
NAV on the date of redemption. The Fund reserves the right to reject any new
account or any purchase order for failure to supply a certified TIN.
EXHIBIT A
REDUCED SALES CHARGES (CLASS A ONLY)
You may qualify for a reduced sales charge through several purchase plans
available. You must notify the Fund at the time of purchase to take advantage of
the reduced sales charge.
Right of Accumulation. The sales charge is calculated by taking into account not
only the dollar amount of a new purchase of shares, but also the higher of cost
or current value of shares previously purchased in Calvert Group Funds that
impose sales charges. This automatically applies to your account for each new
purchase.
Letter of Intent. If you plan to purchase $50,000 or more of Fund shares over
the next 13 months, your sales charge may be reduced through a "Letter of
Intent." You pay the lower sales charge applicable to the total amount you plan
to invest over the 13-month period, excluding any money market fund purchases.
Part of your shares will be held in escrow, so that if you do not invest the
amount indicated, you will have to pay the sales charge applicable to the
smaller investment actually made. For more information, see the Statement of
Additional Information.
Group Purchases. If you are a member of a qualified group, you may purchase
shares of the Fund at the reduced sales charge applicable to the group taken as
a whole. The sales charge is calculated by taking into account not only the
dollar amount of the shares you purchase, but also the higher of cost or current
value of shares previously purchased and currently held by other members of your
group.
A "qualified group" is one which (i) has been in existence for more than six
months, (ii) has a purpose other than acquiring Fund shares at a discount, and
(iii) satisfies uniform criteria which enable CDI and dealers offering Fund
shares to realize economies of scale in distributing such shares. A qualified
group must have more than 10 members, must be available to arrange for group
meetings between representatives of CDI or dealers distributing the Fund's
shares, must agree to include sales and other materials related to the Fund in
its publications and mailings to members at reduced or no cost to CDI or
dealers, and must seek to arrange for payroll deduction or other bulk
transmission of investments to the Fund.
Pension plans may not qualify participants for group purchases; however, such
plans may qualify for reduced sales charges under a separate provision (see
below). Members of a group are not eligible for a Letter of Intent.
Retirement Plans Under Section 457, Section 403(b)(7), or Section 401(k). There
is no sales charge on shares purchased for the benefit of a retirement plan
under Section 457 of the Internal Revenue Code of 1986, as amended ("Code"), or
for a plan qualifying under Section 403(b)(7) of the Code if, at the time of
purchase, Calvert Group has been notified in writing that the 403(b)(7) plan has
at least 200 eligible employees. Furthermore, there is no sales charge on shares
purchased for the benefit of a retirement plan qualifying under Section 401(k)
of the Code if, at the time of such purchase, the 401(k) plan administrator has
notified Calvert Group in writing that a) its 401(k) plan has at least 200
eligible employees; or b) the cost or current value of shares the plan has in
Calvert Group of Funds (except money market funds) is at least $1 million.
Neither the Fund, nor CDI, nor any affiliate thereof will reimburse a plan or
participant for any sales charges paid prior to receipt of such written
communication and confirmation by Calvert Group. Plan administrators should send
requests for the waiver of sales charges based on the above conditions to:
Calvert Group Retirement Plans, 4550 Montgomery Avenue, Suite 1000N, Bethesda,
Maryland 20814.
Other Circumstances. There is no sales charge on shares of any fund (portfolio
or series) of the Calvert Group of Funds sold to (i) current and retired members
of the Board of Trustees/Directors of the Calvert Group of Funds, (and the
Advisory Council of the Calvert Social Investment Fund); (ii) directors,
officers and employees of the Advisor, Distributor, and their affiliated
companies; (iii) directors, officers and registered representatives of brokers
distributing the Fund's shares; and immediate family members of persons listed
in (i), (ii), and (iii), above; (iv) dealers, brokers, or registered investment
advisors that have entered into an agreement with CDI providing specifically for
the use of shares of the Fund (Portfolio or Series) in particular investment
programs or products (where such program or product already has a fee charged
therein) made available to the clients of such dealer, broker, or registered
investment advisor; (v) trust departments of banks or savings institutions for
trust clients of such bank or savings institution; and (vi) purchases placed
through a broker maintaining an omnibus account with the Fund (Portfolio or
Series) and the purchases are made by (a) investment advisors or financial
planners placing trades for their own accounts (or the accounts of their
clients) and who charge a management, consulting, or other fee for their
services; or (b) clients of such investment advisors or financial planners who
place trades for their own accounts if such accounts are linked to the master
account of such investment advisor or financial planner on the books and records
of the broker or agent; or (c) retirement and deferred compensation plans and
trusts, including, but not limited to, those defined in Section 401(a) or
Section 403(b) of the I.R.C., and "rabbi trusts."
Established Accounts. Shares of Calvert Income Fund may be sold at net asset
value to accounts opened on or before January 12, 1987.
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. Dividends and distributions from Calvert Group money market funds
used to purchase shares of the Fund are not be subject to the applicable sales
charge.
Reinstatement Privilege. If you redeem Fund shares and then within 30 days
decide to reinvest in the same Fund, you may do so at the net asset value next
computed after the reinvestment order is received, without a sales charge. You
may use the reinstatement privilege only once. The Fund reserves the right to
modify or eliminate this privilege.
================================================================================
To Open an Account: Prospectus
800-368-2748 January 31, 1995
As Revised September 30, 1995
Yields and Prices:
Calvert Information Network THE CALVERT FUND
24 hours, 7 days a week CALVERT INCOME FUND
800-368-2745
Service for Existing Account:
Shareholders 800-368-2745
Brokers 800-368-2746
TDD for Hearing-Impaired:
800-541-1524
Branch Office:
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
Registered, Certified or
Overnight Mail:
Calvert Group
c/o NFDS, 6th Floor
1004 Baltimore
Kansas City, MO 64105
PRINCIPAL UNDERWRITER
Calvert Distributors, Inc.
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
================================================================================
Table of Contents
Fund Expenses
Financial Highlights
Investment Objective and Policies
Yield and Total Return
Management of the Fund
SHAREHOLDER GUIDE:
Alternative Sales Options
How to Buy Shares
Net Asset Value
When Your Account Will Be Credited
Exchanges
Other Calvert Group Services
Selling Your Shares
How to Sell Your Shares
Dividends, Capital Gains and Taxes
Exhibit A - Reduced Sales Charges
PROSPECTUS
January 31, 1995
THE CALVERT FUND
Calvert U. S. Government Fund
Calvert Income Fund
4550 Montgomery Avenue, Bethesda, Maryland 20814
INVESTMENT OBJECTIVES
Calvert U.S. Government Fund seeks to provide high current income consistent
with safety of principal by investing in a professionally managed portfolio
consisting primarily of U.S. Government-backed obligations. There is no
limitation on the maturity of obligations in which Calvert U.S. Government Fund
may invest.
Calvert Income Fund seeks to maximize long-term income, to the extent consistent
with prudent investment management and preservation of capital, through
investment in bonds and other income producing securities of investment grade
quality.
Each Fund offers two classes of shares, each with different expense levels and
sales charges. You may choose to purchase (i) Class A shares, with a sales
charge imposed at the time you purchase the shares ("front-end sales charge");
or (ii) Class C shares which impose neither a front-end sales charge nor a
contingent deferred sales charge. Class C shares are not available through all
dealers. Class C shares have a higher level of expenses than Class A shares,
including higher Rule 12b-1 fees. These alternatives permit you to choose the
method of purchasing shares that is most beneficial to you, depending on the
amount of the purchase, the length of time you expect to hold the shares, and
other circumstances. See "Alternative Sales Options" for further details.
TO OPEN AN ACCOUNT
Call your broker, or complete and return the enclosed Account Application.
Minimum investment is $2,000 per Fund.
ABOUT THIS PROSPECTUS
Please read this Prospectus before investing. It is designed to provide you with
information you ought to know before investing and to help you decide if the
Funds' goals match your own. Keep this document for future reference.
A Statement of Additional Information for the Funds (dated January 31, 1995) has
been filed with the Securities and Exchange Commission and is incorporated by
reference. This free Statement is available upon request from the Fund:
800-368-2748.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION, NOR HAS THE FEDERAL OR
ANY STATE SECURITIES COMMISSION PASSED ON THE ACCURACY OR ADEQUACY OF THIS
PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
SHARES OF THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR ENDORSED
BY, ANY BANK, AND ARE NOT FEDERALLY INSURED BY THE FDIC, THE FEDERAL RESERVE
BOARD, OR ANY OTHER AGENCY. WHEN INVESTORS SELL SHARES OF THE FUND, THE VALUE
MAY BE HIGHER OR LOWER THAN THE AMOUNT ORIGINALLY PAID FUND EXPENSES
<TABLE>
<CAPTION>
CALVERT INCOME FUND
Class A Class C
<S> <C> <C>
A. Shareholder Transaction Costs
Maximum Sales Charge on 3.75% None
Purchases (as a percentage
of offering price)
Contingent Deferred Sales Charge None None
B. Annual Fund Operating Expenses<F1>
Fiscal Year 1994 (as a percentage
of net assets, net of any applicable
expense reimbursement/fee waiver)
Management Fees 0.70% 0.70%
Rule 12b-1 Service and
Distribution Fees 0.25% 1.00%
Other Expenses 0.31% 1.13%
Total Fund Operating Expenses 1.26% 2.83%
<FN>
<F1>Expense ratios for Class A shares have been restated to reflect expenses
anticipated for fiscal year 1995.
</FN>
</TABLE>
================================================================================
<TABLE>
<CAPTION>
CALVERT U.S. GOVERNMENT FUND
Class A Class C
<S> <C> <C>
A. Shareholder Transaction Costs
Maximum Sales Charge on 3.75% None
Purchases (as a percentage
of offering price)
Contingent Deferred Sales Charge None None
B. Annual Fund Operating Expenses<F2>
Fiscal Year 1994 (as a percentage
of net assets, net of any applicable
expense reimbursement/fee waiver)
Management Fees 0.60% 0.60%
Rule 12b-1 Service and
Distribution Fees 0.25% 1.00%
Other Expenses 0.50% 0.93%
Total Fund Operating Expenses 1.35% 2.53%
<FN>
<F2>Expense ratios for Class A shares have been restated to reflect expenses
anticipated for fiscal year 1995.
</FN>
</TABLE>
C. Example: You would pay the following expenses on a $1,000 investment,
assuming (1) 5% annual return and (2) redemption at the end of each period:
<TABLE>
<CAPTION>
Fund 1 Year 3 Years 5 Years 10 Years
<S> <C> <C> <C> <C>
Calvert Income Fund
Class A<F3> $50 $76 $104 $184
Class C $29 $88 $149 $316
Calvert U.S. Government Fund
Class A<F2> $51 $79 $109 $194
Class C $26 $79 $135 $287
Explanation of Table: The purpose of the table is to assist you in understanding
the various costs and expenses that an investor in the Fund may bear directly
(shareholder transaction costs) or indirectly (annual fund operating expenses).
<FN>
<F2>Expense ratios for Class A shares have been restated to reflect expenses
anticipated for fiscal year 1995.
<F3>Assumes payment of maximum initial sales charge at time of purchase.
</FN>
</TABLE>
A. Shareholder Transaction Costs are charges you pay when you buy or sell shares
of the Fund. See "Reduced Sales Charges" at Exhibit A to see if you qualify for
possible reductions in the sales charge. If you request a wire redemption of
less than $1,000, you will be charged a $5 wire fee.
B. Annual Fund Operating Expenses. Management Fees are paid by the Fund to
Calvert Asset Management Company, Inc. ("Investment Advisor") for managing the
Funds' investments and business affairs. The Funds incur Other Expenses for
maintaining shareholder records, furnishing shareholder statements and reports,
and other services. Management Fees and Other Expenses have already been
reflected in the Funds' share price and are not charged directly to individual
shareholder accounts. Please refer to "Management of the Fund" for further
information.
The Fund's Rule 12b-1 fees include an asset-based sales charge. Thus, it is
possible that long-term shareholders in the 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.
C. Example of Expenses. The example, which is hypothetical, should not be
considered a representation of past or future expenses. Actual expenses and
return may be higher or lower than those shown.
================================================================================
FINANCIAL HIGHLIGHTS
The following tables provide information about the financial history of each
Fund's Class A and C shares. They express the information in terms of a single
share outstanding for the respective Fund throughout each period. The tables
have been audited by those independent accountants whose reports are included in
the respective Annual Reports to Shareholders of the Funds. The tables should be
read in conjunction with the financial statements and their related notes. The
current Annual Reports to Shareholders are incorporated by reference into the
Statement of Additional Information.
<TABLE>
<CAPTION>
Calvert Income Fund Class C Shares
From Inception
(March 1, 1994) To
September 30, 1994
<S> <C>
Net asset value, beginning of period $17.35
Income from investment operations
Net investment income .57
Net realized and unrealized gain
(loss) on investments (1.67)
Total from investment operations (1.10)
Distributions to shareholders
Dividends from net investment income (.62)
Distribution from capital gains --
Total Distributions (.62)
Total increase (decrease) in
net asset value (1.72)
Net asset value, end of period $15.63
Total return<F4> (5.47)%
Ratio of expenses to average
net assets 2.65%(a)
Ratio of net income to average
net assets 5.62%(a)
Increase reflected in above net
investment income ratios due to
expense reimbursement 7.29%(a)
Portfolio turnover 34%
Net assets, end of period $413,187
Number of shares outstanding
at end of period (in thousands) 26
<FN>
<F4>Total return does not reflect deduction of Class A front-end sales charges.
Total return prior to 1989 is not audited.
(a) Annualized
</FN>
</TABLE>
================================================================================
<TABLE>
<CAPTION>
Calvert Income Fund Class A Shares
Year Ended
September 30, 1994
<S> <C>
Net asset value, beginning of period $18.41
Income from investment operations
Net investment income 1.16
Net realized and unrealized gain
(loss) on investments (2.42)
Total from investment operations (1.26)
Distributions to shareholders
Dividends from net investment income (1.16)
Distribution from capital gains (.31)
Total Distributions (1.47)
Total increase (decrease) in
net asset value (2.73)
Net asset value, end of period $15.68
Total return<F4> (6.94)%
Ratio of expenses to average
net assets 1.07%
Ratio of net income to average
net assets 6.86%
Increase reflected in above net
investment income ratios due to
expense reimbursement --
Portfolio turnover 34%
Net assets, end of period $45,935,905
Number of shares outstanding
at end of period (in thousands) 2,929
<FN>
<F4>Total return does not reflect deduction of Class A front-end sales charges.
Total return prior to 1989 is not audited.
(a) Annualized
</FN>
</TABLE>
<TABLE>
<CAPTION>
Calvert Income Fund
Class A Shares
Year Ended September 30, 1993
<S> <C>
Net asset value, beginning of period $17.50
Income from investment operations
Net investment income 1.23
Net realized and unrealized gain
(loss) on investments .91
Total from investment operations 2.14
Distributions to shareholders
Dividends from net investment income (1.23)
Distribution from capital gains --
Total Distributions (1.23)
Total increase (decrease) in
net asset value .91
Net asset value, end of period $18.41
Total return<F5> 12.47%
Ratio of expenses to average
net assets 1.00%
Ratio of net income to average
net assets 6.93%
Increase reflected in above net
investment income ratios due to
expense reimbursement --
Portfolio turnover 25%
Net assets, end of period $53,134,459
Number of shares outstanding
at end of period (in thousands) 2,886
<FN>
<F5>Total return does not reflect deduction of Class A front-end sales charges.
Total return prior to 1989 is not audited.
(a) Annualized
</FN>
</TABLE>
================================================================================
<TABLE>
<CAPTION>
Calvert Income Fund
Class A Shares
Year Ended September 30, 1992
<S> <C>
Net asset value, beginning of period $16.61
Income from investment operations
Net investment income 1.28
Net realized and unrealized gain
(loss) on investments .89
Total from investment operations 2.17
Distributions to shareholders
Dividends from net investment income (1.28)
Distribution from capital gains --
Total Distributions (1.28)
Total increase (decrease) in
net asset value .89
Net asset value, end of period $17.50
Total return<F5> 13.66%
Ratio of expenses to average
net assets 1.04%
Ratio of net income to average
net assets 7.59%
Increase reflected in above net
investment income ratios due to
expense reimbursement --
Portfolio turnover 18%
Net assets, end of period $43,494,326
Number of shares outstanding
at end of period (in thousands) 2,486
<FN>
<F5>Total return does not reflect deduction of Class A front-end sales charges.
Total return prior to 1989 is not audited.
(a) Annualized
</FN>
</TABLE>
================================================================================
<TABLE>
<CAPTION>
Calvert Income Fund
Class A Shares
Year Ended September 30, 1991
<S> <C>
Net asset value, beginning of period $15.58
Income from investment operations
Net investment income 1.31
Net realized and unrealized gain
(loss) on investments 1.03
Total from investment operations 2.34
Distributions to shareholders
Dividends from net investment income (1.31)
Distribution from capital gains --
Total Distributions (1.31)
Total increase (decrease) in
net asset value 1.03
Net asset value, end of period $16.61
Total return<F6> 15.72%
Ratio of expenses to average
net assets 1.08%
Ratio of net income to average
net assets 8.22%
Increase reflected in above net
investment income ratios due to
expense reimbursement --
Portfolio turnover 27%
Net assets, end of period $36,412,545
Number of shares outstanding
at end of period (in thousands) 2,193
<FN>
<F6>Total return does not reflect deduction of Class A front-end sales charges.
Total return prior to 1989 is not audited.
(a) Annualized
</FN>
</TABLE>
================================================================================
<TABLE>
<CAPTION>
Calvert Income Fund
Class A Shares
Year Ended September 30, 1990
<S> <C>
Net asset value, beginning of period $16.36
Income from investment operations
Net investment income 1.36
Net realized and unrealized gain
(loss) on investments (.78)
Total from investment operations .58
Distributions to shareholders
Dividends from net investment income (1.36)
Distribution from capital gains --
Total Distributions (1.36)
Total increase (decrease) in
net asset value (.78)
Net asset value, end of period $15.58
Total return<F6> 3.63%
Ratio of expenses to average
net assets 1.05%
Ratio of net income to average
net assets 8.42%
Increase reflected in above net
investment income ratios due to
expense reimbursement --
Portfolio turnover 5%
Net assets, end of period $32,201,363
Number of shares outstanding
at end of period (in thousands) 2,066
<FN>
<F6>Total return does not reflect deduction of Class A front-end sales charges.
Total return prior to 1989 is not audited.
(a) Annualized
</FN>
</TABLE>
================================================================================
<TABLE>
<CAPTION>
Calvert Income Fund
Class A Shares
Year Ended September 30, 1989
<S> <C>
Net asset value, beginning of period $15.70
Income from investment operations
Net investment income 1.36
Net realized and unrealized gain
(loss) on investments .71
Total from investment operations 2.07
Distributions to shareholders
Dividends from net investment income (1.41)
Distribution from capital gains --
Total Distributions (1.41)
Total increase (decrease) in
net asset value .66
Net asset value, end of period $16.36
Total return<F7> 13.48%
Ratio of expenses to average
net assets 1.07%
Ratio of net income to average
net assets 8.57%
Increase reflected in above net
investment income ratios due to
expense reimbursement --
Portfolio turnover 19%
Net assets, end of period $22,969,095
Number of shares outstanding
at end of period (in thousands) 1,404
<FN>
<F7>Total return does not reflect deduction of Class A front-end sales charges.
Total return prior to 1989 is not audited.
(a) Annualized
</FN>
</TABLE>
================================================================================
<TABLE>
<CAPTION>
Calvert Income Fund
Class A Shares
Year Ended September 30, 1988
<S> <C>
Net asset value, beginning of period $15.29
Income from investment operations
Net investment income 1.42
Net realized and unrealized gain
(loss) on investments .71
Total from investment operations 2.13
Distributions to shareholders
Dividends from net investment income (1.42)
Distribution from capital gains (.30)
Total Distributions (1.72)
Total increase (decrease) in
net asset value .41
Net asset value, end of period $15.70
Total return<F7> 14.67%
Ratio of expenses to average
net assets .94%
Ratio of net income to average
net assets 9.07%
Increase reflected in above net
investment income ratios due to
expense reimbursement .25%
Portfolio turnover 37%
Net assets, end of period $20,374,751
Number of shares outstanding
at end of period (in thousands) 1,298
<FN>
<F7>Total return does not reflect deduction of Class A front-end sales charges.
Total return prior to 1989 is not audited.
(a) Annualized
</FN>
</TABLE>
================================================================================
<TABLE>
<CAPTION>
Calvert Income Fund
Class A Shares
Year Ended September 30, 1987
<S> <C>
Net asset value, beginning of period $17.04
Income from investment operations
Net investment income 1.51
Net realized and unrealized gain
(loss) on investments (1.61)
Total from investment operations (.10)
Distributions to shareholders
Dividends from net investment income (1.47)
Distribution from capital gains (.18)
Total Distributions (1.65)
Total increase (decrease) in
net asset value (1.75)
Net asset value, end of period $15.29
Total return<F8> (.84)%
Ratio of expenses to average
net assets .85%
Ratio of net income to average
net assets 9.06%
Increase reflected in above net
investment income ratios due to
expense reimbursement .25%
Portfolio turnover 42%
Net assets, end of period $20,573,546
Number of shares outstanding
at end of period (in thousands) 1,345
<FN>
<F8>Total return does not reflect deduction of Class A front-end sales charges.
Total return prior to 1989 is not audited.
(a) Annualized
</FN>
</TABLE>
================================================================================
<TABLE>
<CAPTION>
Calvert Income Fund
Class A Shares
Year Ended September 30, 1986
<S> <C>
Net asset value, beginning of period $15.78
Income from investment operations
Net investment income 1.57
Net realized and unrealized gain
(loss) on investments 1.26
Total from investment operations 2.83
Distributions to shareholders
Dividends from net investment income (1.57)
Distribution from capital gains --
Total Distributions (1.57)
Total increase (decrease) in
net asset value 1.26
Net asset value, end of period $17.04
Total return<F8> 18.38%
Ratio of expenses to average
net assets .85%
Ratio of net income to average
net assets 9.16%
Increase reflected in above net
investment income ratios due to
expense reimbursement .33%
Portfolio turnover 23%
Net assets, end of period $21,455,859
Number of shares outstanding
at end of period (in thousands) 1,259
<FN>
<F8>Total return does not reflect deduction of Class A front-end sales charges.
Total return prior to 1989 is not audited.
(a) Annualized
</FN>
</TABLE>
================================================================================
<TABLE>
<CAPTION>
Calvert Income Fund
Class A Shares
Year Ended September 30, 1985
<S> <C>
Net asset value, beginning of period $14.30
Income from investment operations
Net investment income 1.72
Net realized and unrealized gain
(loss) on investments 1.53
Total from investment operations 3.25
Distributions to shareholders
Dividends from net investment income (1.77)
Distribution from capital gains --
Total Distributions (1.77)
Total increase (decrease) in
net asset value 1.48
Net asset value, end of period $15.78
Total return<F9> 23.31%
Ratio of expenses to average
net assets .82%
Ratio of net income to average
net assets 10.74%
Increase reflected in above net
investment income ratios due to
expense reimbursement .61%
Portfolio turnover 11%
Net assets, end of period $13,428,901
Number of shares outstanding
at end of period (in thousands) 851
<FN>
<F9>Total return does not reflect deduction of Class A front-end sales charges.
Total return prior to 1989 is not audited.
(a) Annualized
</FN>
</TABLE>
================================================================================
<TABLE>
<CAPTION>
Calvert U.S. Government Fund Class C Shares
From Inception
(March 1, 1994) To
September 30, 1994
<S> <C>
New asset value, beginning of period $14.77
Income from investment operations
Net investment income .34
Net realized and unrealized gain
(loss) on investments (1.01)
Total from investment operations (.67)
Distributions to shareholders
Dividends from net investment income (.39)
Distribution from capital gains --
Total Distributions (.39)
Total increase (decrease) in
net asset value (1.06)
Net asset value, end of period $13.71
Total return<F10> (3.58)%
Ratio of expenses to average
net assets 2.41%(a)
Ratio of net income to average
net assets 4.39%(a)
Increase reflected in above net
investment income ratio due to
expense reimbursement 7.96%(a)
Portfolio turnover 99%
Net assets, end of period $301,837
Number of shares outstanding
at end of period (in thousands) 22
<FN>
<F10>Total return does not reflect deduction of Class A front-end sales charges.
Total return prior to 1989 is not audited.
(a) Annualized
</FN>
</TABLE>
================================================================================
<TABLE>
<CAPTION>
Calvert U.S. Government Fund Class A Shares
Year Ended
September 30, 1994
<S> <C>
New asset value, beginning of period $16.17
Income from investment operations
Net investment income .75
Net realized and unrealized gain
(loss) on investments (1.53)
Total from investment operations (.78)
Distributions to shareholders
Dividends from net investment income (.75)
Distribution from capital gains (.90)
Total Distributions (1.65)
Total increase (decrease) in
net asset value (2.43)
Net asset value, end of period $13.74
Total return<F10> (5.19)%
Ratio of expenses to average
net assets 1.02%
Ratio of net income to average
net assets 4.99%
Increase reflected in above net
investment income ratio due to
expense reimbursement --
Portfolio turnover 99%
Net assets, end of period $9,720,843
Number of shares outstanding
at end of period (in thousands) 708
<FN>
<F10>Total return does not reflect deduction of Class A front-end sales charges.
Total return prior to 1989 is not audited.
(a) Annualized
</FN>
</TABLE>
================================================================================
<TABLE>
<CAPTION>
Calvert U.S. Government Fund
Class A Shares
Year Ended September 30, 1993
<S> <C>
Net asset value, beginning of period $15.72
Income from investment operations
Net investment income .87
Net realized and unrealized gain
(loss) on investments .45
Total from investment operations 1.32
Distributions to shareholders
Dividends from net investment income (.87)
Distribution from capital gains --
Total Distributions (.87)
Total increase (decrease) in
net asset value .45
Net asset value, end of period $16.17
Total return<F11> 8.70%
Ratio of expenses to average
net assets .95%
Ratio of net income to average
net assets 5.49%
Increase reflected in above net
investment income ratios due to
expense reimbursement --
Portfolio turnover 191%
Net assets, end of period $13,652,275
Number of shares outstanding
at end of period (in thousands) 844
<FN>
<F11>Total return does not reflect deduction of Class A front-end sales charges.
Total return prior to 1989 is not audited.
(a) Annualized
</FN>
</TABLE>
================================================================================
<TABLE>
<CAPTION>
Calvert U.S. Government Fund
Class A Shares
Year Ended September 30, 1992
<S> <C>
Net asset value, beginning of period $15.19
Income from investment operations
Net investment income .95
Net realized and unrealized gain
(loss) on investments .53
Total from investment operations 1.48
Distributions to shareholders
Dividends from net investment income (.95)
Distribution from capital gains --
Total Distributions (.95)
Total increase (decrease) in
net asset value .53
Net asset value, end of period $15.72
Total return<F11> 10.07%
Ratio of expenses to average
net assets 1.11%
Ratio of net income to average
net assets 6.15%
Increase reflected in above net
investment income ratios due to
expense reimbursement --
Portfolio turnover --
Net assets, end of period $13,222,748
Number of shares outstanding
at end of period (in thousands) 841
<FN>
<F11>Total return does not reflect deduction of Class A front-end sales charges.
Total return prior to 1989 is not audited.
(a) Annualized
</FN>
</TABLE>
================================================================================
<TABLE>
<CAPTION>
Calvert U.S. Government Fund
Class A Shares
Year Ended September 30, 1991
<S> <C>
Net asset value, beginning of period $14.50
Income from investment operations
Net investment income 1.00
Net realized and unrealized gain
(loss) on investments .69
Total from investment operations 1.69
Distributions to shareholders
Dividends from net investment income (1.00)
Distribution from capital gains --
Total Distributions (1.00)
Total increase (decrease) in
net asset value .69
Net asset value, end of period $15.19
Total return<F12> 12.07%
Ratio of expenses to average
net assets 1.26%
Ratio of net income to average
net assets 6.69%
Increase reflected in above net
investment income ratios due to
expense reimbursement --
Portfolio turnover --
Net assets, end of period $11,935,308
Number of shares outstanding
at end of period (in thousands) 785
<FN>
<F12>Total return does not reflect deduction of Class A front-end sales charges.
Total return prior to 1989 is not audited.
(a) Annualized
</FN>
</TABLE>
================================================================================
<TABLE>
<CAPTION>
Calvert U.S. Government Fund
Class A Shares
Year Ended September 30, 1990
<S> <C>
Net asset value, beginning of period $14.52
Income from investment operations
Net investment income 1.13
Net realized and unrealized gain
(loss) on investments (.02)
Total from investment operations 1.11
Distributions to shareholders
Dividends from net investment income (1.13)
Distribution from capital gains --
Total Distributions (1.13)
Total increase (decrease) in
net asset value (.02)
Net asset value, end of period $14.50
Total return<F12> 7.91%
Ratio of expenses to average
net assets .75%
Ratio of net income to average
net assets 7.77%
Increase reflected in above net
investment income ratios due to
expense reimbursement .51%
Portfolio turnover --
Net assets, end of period $5,624,122
Number of shares outstanding
at end of period (in thousands) 388
<FN>
<F12>Total return does not reflect deduction of Class A front-end sales charges.
Total return prior to 1989 is not audited.
(a) Annualized
</FN>
</TABLE>
================================================================================
<TABLE>
<CAPTION>
Calvert U.S. Government Fund
Class A Shares
Year Ended September 30, 1989
<S> <C>
Net asset value, beginning of period $14.34
Income from investment operations
Net investment income 1.19
Net realized and unrealized gain
(loss) on investments .21
Total from investment operations 1.40
Distributions to shareholders
Dividends from net investment income (1.22)
Distribution from capital gains --
Total Distributions (1.22)
Total increase (decrease) in
net asset value .18
Net asset value, end of period $14.52
Total return<F13> 10.20%
Ratio of expenses to average
net assets .75%
Ratio of net income to average
net assets 8.32%
Increase reflected in above net
investment income ratios due to
expense reimbursement .54%
Portfolio turnover --
Net assets, end of period $3,379,592
Number of shares outstanding
at end of period (in thousands) 233
<FN>
<F13>Total return does not reflect deduction of Class A front-end sales charges.
Total return prior to 1989 is not audited.
(a) Annualized
</FN>
</TABLE>
================================================================================
<TABLE>
<CAPTION>
Calvert U.S. Government Fund
Class A Shares
Year Ended September 30, 1988
<S> <C>
Net asset value, beginning of period $13.54
Income from investment operations
Net investment income 1.23
Net realized and unrealized gain
(loss) on investments .80
Total from investment operations 2.03
Distributions to shareholders
Dividends from net investment income (1.23)
Distribution from capital gains --
Total Distributions (1.23)
Total increase (decrease) in
net asset value .80
Net asset value, end of period $14.34
Total return<F13> 15.36%
Ratio of expenses to average
net assets .53%
Ratio of net income to average
net assets 8.60%
Increase reflected in above net
investment income ratios due to
expense reimbursement 1.10%
Portfolio turnover 8%
Net assets, end of period $2,988,364
Number of shares outstanding
at end of period (in thousands) 208
<FN>
<F13>Total return does not reflect deduction of Class A front-end sales charges.
Total return prior to 1989 is not audited.
(a) Annualized
</FN>
</TABLE>
================================================================================
<TABLE>
<CAPTION>
Calvert U.S. Government Fund
Class A Shares
Year Ended September 30, 1987
<S> <C>
Net asset value, beginning of period $14.77
Income from investment operations
Net investment income 1.23
Net realized and unrealized gain
(loss) on investments (1.26)
Total from investment operations (.03)
Distributions to shareholders
Dividends from net investment income (1.20)
Distribution from capital gains --
Total Distributions (1.20)
Total increase (decrease) in
net asset value (1.23)
Net asset value, end of period $13.54
Total return<F14> (.54)%
Ratio of expenses to average
net assets .50%
Ratio of net income to average
net assets 8.58%
Increase reflected in above net
investment income ratios due to
expense reimbursement 1.31%
Portfolio turnover 115%
Net assets, end of period $2,416,948
Number of shares outstanding
at end of period (in thousands) 179
<FN>
<F14>Total return does not reflect deduction of Class A front-end sales charges.
Total return prior to 1989 is not audited.
(a) Annualized
</FN>
</TABLE>
================================================================================
<TABLE>
<CAPTION>
Calvert U.S. Government Fund
Class A Shares
From Inception
(May 22, 1986
To September 30,
1986
<S> <C>
Net asset value, beginning of period $15.00
Income from investment operations
Net investment income .35
Net realized and unrealized gain
(loss) on investments (.24)
Total from investment operations .11
Distributions to shareholders
Dividends from net investment income (.34)
Distribution from capital gains --
Total Distributions (.34)
Total increase (decrease) in
net asset value (.23)
Net asset value, end of period $14.77
Total return<F14> .72%
Ratio of expenses to average
net assets .50%(a)
Ratio of net income to average
net assets 7.01%(a)
Increase reflected in above net
investment income ratios due to
expense reimbursement 4.53%(a)
Portfolio turnover --
Net assets, end of period $902,868
Number of shares outstanding
at end of period (in thousands) 61
<FN>
<F14>Total return does not reflect deduction of Class A front-end sales charges.
Total return prior to 1989 is not audited.
(a) Annualized
</FN>
</TABLE>
================================================================================
INVESTMENT OBJECTIVES AND POLICIES
Calvert U.S. Government Fund invests primarily in U.S. Government-backed
obligations.
Calvert U.S. Government Fund seeks to provide high current income consistent
with safety of principal by investing in a professionally managed portfolio
consisting primarily of U.S. Government-backed obligations. There is no limit on
the maturity of securities in which Calvert U.S. Government Fund may invest.
Under normal circumstances, this Fund attempts to invest 100% of its assets in
U.S. Government-backed obligations which include:
(1) Mortgage pass-through certificates issued by the Government National
Mortgage Association (known as "GNMAs" or "Ginnie Maes");
(2) Direct obligations of the United States Treasury which consist of U.S.
Treasury bills (having maturities of one year or less), U.S. Treasury notes
(having maturities of one to ten years) and U.S. Treasury bonds (generally
having maturities greater than ten years);
(3) Obligations issued or guaranteed by the United States Government, its
agencies, or its instrumentalities which are supported by: (a) the full faith
and credit of the U.S. Government (for example, GNMAs); (b) the right of the
issuer to borrow an amount limited to a specific line of credit for the U.S.
Government (for example, obligations of the Federal National Mortgage
Association, known as "Fannie Maes"); and (c) the credit of the agency or
instrumentality (for example, obligations of the Federal Home Loan Mortgage
Corporation, known as "Freddie Macs");
(4) Securities collateralized by the mortgage-related obligations described
above ("collateralized mortgage obligations" or "CMOs"); and
(5) U.S. Government-backed obligations subject to repurchase agreements with
recognized securities dealers and banks.
The Advisor anticipates that a substantial portion of the Government-backed
obligations in Calvert U.S. Government Fund's portfolio will consist of GNMAs
although there is no set percentage that must be invested in GNMAs.
Calvert Income Fund invests in corporate bonds. 80% of its assets must be
invested in bonds of investment grade quality.
Calvert Income Fund seeks to maximize long-term income, to the extent consistent
with prudent investment management and preservation of capital, primarily
through investment in investment grade bonds and other income-producing
securities. Debt securities may be long-term, intermediate-term, short-term, or
any combination thereof, depending on the Advisor's evaluation of current and
anticipated market patterns and trends. The Advisor expects that the Fund's
average weighted maturity will range between 5 and 20 years.
Calvert Income Fund invests 80% of its assets in corporate obligations which at
the date of investment are rated within the four highest grades established by
Moody's Investors Services, Inc. (Aaa, Aa, A, or Baa), or by Standard and Poor's
Corporation (AAA, AA, A, or BBB), or if not rated, are of comparable quality as
determined by the Advisor. Though still investment grade, securities rated
BBB/Baa possess certain speculative elements and are generally more susceptible
to changing market conditions. All fixed income instruments are subject to
interest-rate risk; that is, when market interest rates rise, the current
principal value of a bond will decline.
The remaining 20% of the Fund's total assets may consist of other debt
securities (see below) including bonds rated below BBB or Baa ("non-investment
grade securities," commonly known as "junk bonds"). With lower rated bonds,
there is a greater possibility that an adverse change in the financial condition
of the issuer may affect its ability to pay principal and interest. In addition,
to the extent the Fund holds any such bonds, it may be negatively affected by
adverse economic developments, increased volatility or a lack of liquidity. See
the Statement of Additional Information, "Non-Investment Grade Debt Securities,"
and bond ratings.
Calvert Income Fund may also purchase obligations issued or guaranteed as to
principal by the U.S. Government or its agencies or instrumentalities;
certificates of deposit, time deposits, and bankers' acceptances of U.S. banks
and their branches located outside of the U.S. and of U.S. branches of foreign
banks, provided that the bank has total assets of at least one billion dollars
or the equivalent in other currencies; commercial paper which at the date of
investment is rated Prime-2 or better by Moody's, A-2 or better by Standard &
Poor's, or, if not rated, is of comparable quality as determined by the Advisor;
and any of the above securities subject to repurchase agreements with recognized
securities dealers and banks. Up to 20% of the value of the Fund's total assets
may consist of other debt securities (including securities convertible into or
carrying warrants to purchase common stock or other equity securities) and
income-producing preferred and common stocks.
GNMA Certificates
GNMA Certificates, or GNMAs, are mortgage-backed securities representing
ownership of mortgage or construction loans that are issued by lenders such as
mortgage bankers, commercial banks and savings and loan associations and are
either insured by the Federal Housing Administration or guaranteed by the
Veterans Housing Administration. The GNMA may be secured by a single mortgage,
such as a large multi-family housing development, or, more typically, by a
"pool" or group of single-family housing mortgages.
Once approved by GNMA, the timely payment of interest and principal on each
mortgage is guaranteed by GNMA and backed by the full faith and credit of the
U.S. Government. GNMAs differ from bonds in that principal is paid back monthly
by the borrower over the term of the loan rather than returned in a lump sum at
maturity. GNMAs are called "pass-through" securities because both interest and
principal payments (including prepayments) are passed through to the holder of
the GNMA. Upon receipt, principal payments will be reinvested by the Fund in
additional securities at the then prevailing interest rate. The amount of any
premium that may be paid upon purchase of a GNMA is not guaranteed. The Advisor
will attempt, through careful evaluation of available GNMA issues and prevailing
market conditions, to invest in GNMAs which provide a high income return but are
not subject to substantial risk of loss of principal. Accordingly, the Advisor
may forgo the opportunity to invest in certain issues of GNMAs which would
provide a high current income yield if the Advisor believes that such issues
would be subject to a risk of prepayment or loss of principal over the long-term
that would outweigh the short-term increment in yield.
Collateralized Mortgage Obligations
Collateralized mortgage obligations ("CMOs") are bonds which are the general
obligations of the bond issuer. CMOs may be issued by governmental entities,
such as the Federal Home Loan Mortgage Corporation (FHLMC), and by
non-governmental entities, such as banks and other mortgage lenders. CMOs
generally are secured by collateral consisting of individual mortgages or a pool
of mortgages. CMOs are not direct obligations of the Government. However,
Calvert U.S. Government Fund will purchase only those CMOs which are U.S.
Government-backed obligations (those that are secured by mortgages or
mortgage-related obligations which are issued or guaranteed by the U.S.
Government, its agencies or its instrumentalities).
FNMA and FHLMC Certificates
Each Fund may invest in pass-through certificates issued by the Federal National
Mortgage Association ("FNMA") and Federal Home Loan Mortgage Corporation
("FHLMC"). Unlike GNMAs, which are typically interests in pools of mortgages
insured or guaranteed by government agencies, FNMA and FHLMC certificates
represent undivided interests in pools of conventional mortgage loans.
Financial Futures, Options, and Other Investment Techniques
Each 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 (U.S. Government Fund
only), 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's portfolio to adjust the risk and return
characteristics of the Fund's portfolio. If the Advisor judges market conditions
incorrectly or employs a strategy that does not correlate well with the 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. Any instruments determined to be illiquid are
subject to the Fund's 10% restriction on illiquid securities. See the Statement
of Additional Information for more detail about these strategies.
Each Fund may enter into repurchase agreements and may purchase securities on a
forward or when-issued basis.
In a repurchase agreement, the Fund buys a security subject to the right and
obligation to sell it back at a higher price. These transactions must be fully
secured at all times, but they involve some credit risk to the Fund if the other
party defaults on its obligation and the Fund is delayed or prevented from
liquidating the collateral.
Purchasing obligations for future delivery or on a "when-issued" basis may
increase the Fund's overall investment exposure and involves a risk of loss if
the value of the securities declines prior to the settlement date. The
transactions are fully secured at all times.
Foreign Investments
Calvert Income Fund may invest up to 20% of its assets in securities of foreign
issuers, provided such securities are denominated in U.S. dollars and trade on
domestic securities exchanges or over-the-counter securities markets. Securities
of foreign issuers may offer greater potential for capital appreciation or
income than the securities of domestic issuers and may involve investment risks
that are greater than those inherent in the securities of domestic issuers. Such
differences might possibly result from future political and economic
developments, disparities in economic systems, and imposition of foreign
governmental restrictions. There may also be less publicly available information
about a foreign issuer than about a domestic issuer; foreign issuers are not
generally subject to uniform auditing, accounting and reporting requirements
comparable to those applicable to domestic issuers.
Other Policies
Calvert Income Fund has the authority to invest in restricted securities and
covered call options, and international money market instruments, and may borrow
money from banks as a temporary measure for extraordinary or emergency purposes.
However, it does not hold, and in the coming year it does not plan to acquire,
more than 5% of the value of its assets in these types of securities or
practices. An explanation of such investment policies is set forth in the
Statement of Additional Information.
Each Fund may lend its portfolio securities to member firms of the New York
Stock Exchange and commercial banks with assets of $1 billion or more, but only
if the value of the securities loaned from a Fund will not exceed one-third of
the Fund's assets.
The Funds have adopted certain fundamental investment restrictions which are
discussed in detail in the Statement of Additional Information. Unless
specifically noted otherwise, the investment objective, policies and
restrictions of the Funds are fundamental and may not be changed without
shareholder approval.
Although U.S. Government-backed obligations in each Fund's portfolio may be
guaranteed by the Government, a Fund's net asset value per share and yield are
not guaranteed and will change in response to market conditions. There can be no
assurance that any Fund will be successful in meeting its investment objective.
YIELD AND TOTAL RETURN
The Funds may advertise yield and total return for each class.
Yield measures the current investment performance for each class of the Fund,
that is, the rate of income on its portfolio investments divided by the share
price. Yield is computed by annualizing the result of dividing the net
investment income per share over a 30-day period by the maximum offering price
per share on the last day of that period. Yields are calculated according to
accounting methods that are standardized for all stock and bond funds.
Both yield and total return are based on historical results and are not intended
to indicate future performance.
Total return is calculated separately for each class. It includes not only the
effect of income dividends but also any change in net asset value, or principal
amount, during the stated period. The total return of a class shows its overall
change in value, including changes in share price and assuming all of the class'
dividends and capital gain distributions are reinvested. A cumulative total
return reflects the class' performance over a stated period of time. An average
annual total return reflects the hypothetical annual compounded return that
would have produced the same cumulative total return if the performance had been
constant over the entire period. Because average annual returns tend to smooth
out variations in the returns, you should recognize that they are not the same
as actual year-by-year results. Both types of total return usually will include
the effect of paying the front-end sales charge, in the case of Class A shares.
Of course, total returns will be higher if sales charges are not taken into
account. Quotations of "overall return" do not reflect deduction of the sales
charge. You should consider overall return figures only if you qualify for a
reduced sales charge, or for purposes of comparison with comparable figures
which also do not reflect sales charges, such as mutual fund averages compiled
by Lipper Analytical Services, Inc. Further information about the Fund's
performance is contained in its Annual Report to Shareholders, which may be
obtained without charge.
MANAGEMENT OF THE FUND
The Trust's Board of Trustees supervises the Trust's activities and reviews its
contracts with companies that provide it with services
.
Calvert U.S. Government Fund and Calvert Income Fund are series of The Calvert
Fund (the "Trust"), an open-end diversified management investment company
organized as a Massachusetts business trust on March 15, 1982. The other series
of the Fund are Calvert Strategic Growth Fund and Calvert Short-Term U.S.
Government Fund.
The Trust is 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 of a Fund you own. For matters affecting only
one Fund, only shares of that Fund are entitled to vote. Matters affecting
classes differently, such as Distribution Plans, will be voted on separately by
the affected class(es).
Portfolio Managers
Investment selections for the Funds are made by Colleen M. Denzler and Stephen
N. Van Order. Ms. Denzler has been with the Calvert Group since 1986, and has
been a member of the Portfolio Investment Department since January 1987. She is
a member of the Institute of Chartered Financial Analysts and the Washington
Society of Investment Analysts. Mr. Van Order joined Calvert Group in October
1992 as the head of the trading desk. He oversees the day-to-day investments and
operations of the department and participates in setting market and portfolio
strategy. Previously, Mr. Van Order was Director of Long Term Funding at Federal
National Mortgage Association (Fannie Mae). In his former capacity, Mr. Van
Order was responsible for Fannie Mae's long term borrowing programs, hedging
programs and debt marketing program.
Calvert Group is one of the largest investment management firms in the
Washington, D.C. area.
Calvert Group, Ltd., parent of the Funds' investment advisor, transfer agent,
and distributor, is a subsidiary of Acacia Mutual Life Insurance Company of
Washington, D.C. Calvert Group is one of the largest investment management firms
in the Washington, D.C. area. Calvert Group, Ltd. and its subsidiaries are
located at 4550 Montgomery Avenue, Suite 1000N, Bethesda, Maryland 20814. As of
December 31, 1994, Calvert Group managed and administered assets in excess of
$4.2 billion and more than 200,000 shareholder and depositor accounts.
Calvert Asset Management serves as Advisor to the Funds.
Calvert Asset Management Company, Inc. (the "Advisor") is the Funds' investment
advisor. The Advisor provides the Funds with investment supervision and
management; administrative services and office space; furnishes executive and
other personnel to the Funds; and pays the salaries and fees of all Trustees who
are affiliated persons of the Advisor. The Advisor may also assume and pay
certain advertising and promotional expenses of the Funds and reserves the right
to compensate broker-dealers in return for their promotional or administrative
services. The Advisor has agreed to limit the Funds' expenses to the most
restrictive state limitation in effect.
The Advisor receives a fee based on a percentage of each Fund's assets.
For its services during the fiscal year ended September 30, 1994, the Advisor
was entitled pursuant to the Investment Advisory Agreement, to receive the
following investment advisory fees as a percentage of the Funds' respective
average daily net assets: Calvert U.S. Government Fund, 0.60%; and Calvert
Income Fund, 0.70%.
Calvert Distributors, Inc. serves as underwriter to market the Fund's shares.
Effective March 1, 1995, Calvert Distributors, Inc. ("CDI") is the Fund's
principal underwriter and distributor. Under the terms of its underwriting
agreement with the Fund, CDI markets and distributes the Fund's shares and is
responsible for payment of commissions and service fees to broker-dealers,
banks, and financial services firms, preparation of advertising and sales
literature, and printing and mailing of prospectuses to prospective investors.
Prior to March 1, 1995, Calvert Securities Corporation was the principal
underwriter.
The transfer agent keeps your account records.
Calvert Shareholder Services, Inc. is the Funds' transfer, dividend disbursing
and shareholder servicing agent.
SHAREHOLDER GUIDE
Opening An Account
You can buy shares of the Funds in several ways which are described here and in
the chart below.
An account application accompanies this prospectus. A completed and signed
application is required for each new account you open, regardless of the method
you choose for making your initial investment. Additional forms may be required
from corporations, associations, and certain fiduciaries. If you have any
questions or need extra applications, call your broker, or Calvert Group at
800-368-2748. Be sure to specify which class you wish to purchase.
To invest in any of Calvert's tax-deferred retirement plans, please call Calvert
Group at 800-368-2748 to receive information and the required separate
application.
Alternative Sales Options
Each Fund offers two classes of shares:
Class A Shares - Front End Load Option
Class A shares are sold with a front-end sales charge at the time of purchase.
Class A shares are not subject to a sales charge when they are redeemed.
Class C shares - Level Load Option
Class C shares are sold without a sales charge at the time of purchase or
redemption.
Class C shares have higher expenses
Each Fund bears some of the costs of selling its shares under Distribution Plans
adopted with respect to its Class A and Class C shares pursuant to Rule 12b-1
under the 1940 Act. Payments under the Class A Distribution Plan are limited to
a maximum of 0.50% annually of the average daily net asset value of Class A
shares for Calvert Income Fund (0.25% for U.S. Government). The Class C
Distribution Plan provides for the payment of an annual distribution fee to CDI
of up to 0.75%, plus a service fee of up to 0.25%, for a total of 1.00% of the
average daily net assets attributable to their respective classes.
Considerations for deciding which class of shares to buy
Income distributions for Class A shares will probably be higher than those for
Class C shares, as a result of the distribution expenses described above. (See
also "Total Return.") You should consider Class A shares if you qualify for a
reduced sales charge under Class A or if you plan to hold the shares for several
years.
Class A Shares
Class A shares are offered at net asset value plus a front-end sales charge as
follows:
<TABLE>
<CAPTION>
Amount of Investment As a % of As a % of Concession to
Offering Net Amount Dealers
Price Invested as a % of
Amount Invested
<S> <C> <C> <C>
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% 0.25%*
*For new investments (new purchases but not exchanges) of $1 million or more a
broker-dealer will have the choice of being paid a finder's fee by CDI in one of
the following methods: (1) CDI may pay broker-dealer, on a monthly basis for 12
months, an annual rate of 0.30%. Payments will be made monthly at the rate of
0.025% of the amount of the investment, less redemptions; or (2) CDI may pay
broker-dealers 0.25% of the amount of the purchase; however, CDI reserves the
right to recoup any portion of the amount paid to the dealer if the investor
redeems some or all of the shares from the Fund within thirteen months of the
time of purchase.
</TABLE>
Sales charges on Class A shares may be reduced or eliminated in certain cases.
See Exhibit A to this prospectus.
The sales charge is paid to CDI, which in turn normally reallows a portion to
your broker-dealer. Upon written notice to dealers with whom it has dealer
agreements, CDI may reallow up to the full applicable sales charge. Dealers to
whom substantially the entire sales charge is reallowed may be deemed to be
underwriters under the Securities Act of 1933.
In addition to any sales charge reallowance or finder's fee, your broker-dealer,
or other financial service firm through which your account is held, currently
will be paid periodic service fees at an annual rate of up to 0.25% of the
average daily net asset value of Class A shares held in accounts maintained by
that firm.
Class A Distribution Plan
Each Fund has adopted a Distribution Plan with respect to its Class A shares
(the "Class A Distribution Plan"), which provides for payments at a maximum
annual rate of 0.25% of the average daily net asset value of Class A shares of
U.S. Government Fund (0.50% of Calvert Income Fund), to pay expenses associated
with the distribution and servicing of Class A shares. Amounts paid by the Fund
to CDI under the Class A Distribution Plan are used to pay to dealers and
others, including CDI salespersons who service accounts, service fees at an
annual rate of up to 0.25% of the average daily net asset value of Class A
shares, and to pay CDI for its marketing and distribution expenses, including,
but not limited to, preparation of advertising and sales literature and the
printing and mailing of prospectuses to prospective investors. During the fiscal
year ended September 30, 1994, Class A Distribution Plan expenses for the Income
and U.S. Government Funds were 0.06% and 0.09%, respectively.
Each of the Distribution Plans may be terminated at any time by vote of the
Independent Trustees or by vote of a majority of the outstanding voting shares
of the respective class.
Class C Shares
Class C shares are not available through all dealers. Class C shares are offered
at net asset value, without a front-end sales charge or a contingent deferred
sales charge. Class C expenses are higher than those of Class A.
Class C Distribution Plan
Each Fund has adopted a Distribution Plan with respect to its Class C shares
(the "Class C Distribution Plan"), which provides for payments at an annual rate
of up to 1.00% of the average daily net asset value of Class C shares, to pay
expenses of the distribution and servicing of Class C shares. Amounts paid by
the Fund under the Class C Distribution Plan are currently used by CDI to pay
dealers and other selling firms dealer-paid quarterly compensation at an annual
rate of up to 0.75%, plus a service fee, as described above under "Class A
Distribution Plan," of up to 0.25%, of the average daily net asset value of each
share sold by such others. For the fiscal year ended September 30, 1994, Class C
Distribution Plan expenses were 1.00% and 1.00% for the Income and U.S.
Government Funds, respectively.
Arrangements with Broker-Dealers and Others
CDI may also pay additional concessions, including non-cash promotional
incentives, such as merchandise or trips, to dealers employing registered
representatives who have sold or are expected to sell a minimum dollar amount of
shares of the Fund and/or shares of other Funds underwritten by CDI. CDI may
make expense reimbursements for special training of a dealer's registered
representatives, advertising or equipment, or to defray the expenses of sales
contests. Eligible marketing and distribution expenses may be paid pursuant to
the Fund's Rule 12b-1 Distribution Plan.
Dealers or others may receive different levels of compensation depending on
which class of shares they sell. Payments pursuant to a Distribution Plan are
included in the operating expenses of the class.
HOW TO BUY SHARES
(BE SURE TO SPECIFY WHICH CLASS YOU ARE BUYING)
Method New Accounts Additional Investments
By Mail $2,000 minimum $250 minimum
Please make your check Please make your check
payable to the Fund of payable to the Fund of
your choice and mail it your choice and mail it
with your application to: with your investment slip to:
These addresses Calvert Group Calvert Group
effective P.O. Box 419544 P.O. Box 419739
April 1, 1995 Kansas City, MO 64179-6542 Kansas City, MO 64105-6739
By Registered, Certified, or Overnight Mail: Calvert Group
c/o NFDS, 6th Floor
1004 Baltimore
Kansas City, MO 64105-1807
Through Your
Broker $2,000 minimun $250 minimum
At the Calvert Visit the Calvert Branch Office to make investments by
Branch Office check. See back cover page for location.
FOR ALL OPTIONS BELOW, PLEASE CALL YOUR BROKER, OR CALVERT GROUP AT
800-368-2745
By Exchange $2,000 minimum $250 minimum
(From your account in another Calvert Group Fund)
When opening an account by exchange, your new account must be established with
the same name(s), address and taxpayer identification number as your existing
Calvert account.
By Bank Wire $2,000 minimun $250 minimum
By Calvert Money Not Available for $50 minimum
Controller* initial Investment
*Please allow sufficient time for Calvert Group to process your initial request
for this service, normally 10 business days. The maximum transaction amount is
$300,000, and your purchase request must be received by 4:00 p.m. Eastern time.
NET ASSET VALUE
Net asset value per share ("NAV)" refers to the worth of one share. NAV is
computed by adding the value of all portfolio holdings, plus other assets,
deducting liabilities and then dividing the result by the number of shares
outstanding. The NAVs of each class will vary daily based on the market values
of the Funds' respective investments.
Portfolio securities and other assets are valued based on market quotations,
except that securities maturing within 60 days are valued at amortized cost. If
quotations are not available, securities are valued by a method that the Board
of Trustees believes accurately reflects fair value.
The NAV for each Fund is calculated at the close of the Fund's business day,
which coincides with the closing of the regular session of the New York Stock
Exchange (normally 4:00 p.m. Eastern time). The Fund is open for business each
day the New York Stock Exchange is open. All purchases of Fund shares will be
confirmed and credited to your account in full and fractional shares (rounded to
the nearest 1/1000 of a share).
WHEN YOUR ACCOUNT WILL BE CREDITED
Before you buy shares, please read the following information to make sure your
investment is accepted and credited properly.
Your purchase will be processed at the next offering price based on the next net
asset value calculated after your order is received and accepted. If your
purchase is received by 4:00 p.m. Eastern time, your account will be credited on
the day of receipt. If your purchase is received after 4:00 p.m. Eastern time,
it will be credited the next business day. All purchases must be made in U.S.
dollars and checks must be drawn on U.S. banks. No cash will be accepted. The
Fund reserves the right to suspend the offering of shares for a period of time
or to reject any specific purchase order. If your check does not clear, your
purchase will be cancelled and you will be charged a $10 fee plus costs incurred
by the Fund. When you purchase by check or with Calvert Money Controller, the
Fund can hold payment on redemptions until it is reasonably satisfied that the
investment is collected (normally 10 business days). To avoid this collection
period, you can wire federal funds from your bank, which may charge you a fee.
Certain financial institutions or broker-dealers which have entered into a sales
agreement with the Distributor may enter confirmed purchase orders on behalf of
customers by phone, with payment to follow within a number of days of the order
as specified by the program. If payment is not received in the time specified,
the financial institution could be held liable for resulting fees or losses.
EXCHANGES
You may exchange shares of the Fund for shares of other Calvert Group Funds.
If your investment goals change, the Calvert Group Family of Funds has a variety
of investment alternatives that includes common stock funds, tax-exempt and
corporate bond funds, and money market funds. The exchange privilege is a
convenient way to buy shares in other Calvert Group Funds in order to respond to
changes in your goals or in market conditions. However, to protect a Fund's
performance and to minimize costs, Calvert Group discourages frequent exchanges
and may prohibit additional purchases of Fund shares by persons engaged in too
many short-term trades. Before you make an exchange from a Fund or Portfolio,
please note the following:
Call your broker or a Calvert representative for information and a prospectus
for any of Calvert's other Funds registered in your state. Read the prospectus
of the Fund or Portfolio into which you want to exchange for relevant
information, including class offerings.
Shares of a particular class of the Fund may be exchanged only for shares of the
same class of another Calvert Fund, except that any class may be exchanged for
Class A shares of any Calvert money market fund.
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 on the
transaction.
Complete and sign an application for an account in that Fund or Portfolio,
taking care to register your new account in the same name and taxpayer
identification number as your existing Calvert account(s). Exchange instructions
may then be given by telephone if telephone redemptions have been authorized and
the shares are not in certificate form.
Shares on which you have already paid a sales charge at Calvert Group and shares
acquired by reinvestment of dividends or distributions may be exchanged into
another Fund at no additional charge.
Shareholders (and those managing multiple accounts) who make two purchases and
two exchange redemptions of shares of the same Portfolio during any 6-month
period will be given written notice that they may be prohibited from making
additional investments. This policy does not prohibit a shareholder from
redeeming shares of the Fund, and does not apply to trades solely among money
market funds.
The Fund reserves the right to terminate or modify the exchange privilege with
60 days' written notice.
OTHER CALVERT GROUP SERVICES
Calvert Information Network
24 hour yield and prices
Calvert Group has a round-the-clock telephone service that lets existing
customers use a push button phone to obtain prices, yields and account balances.
Complete instructions for this service may be found on the back of each
statement.
Calvert Money Controller
Calvert Money Controller eliminates the delay of mailing a check or the expense
of wiring funds. You can request this free service on your application.
This service allows you to authorize electronic transfers of money to purchase
or sell shares. You use Calvert Money Controller like an "electronic check" to
move money ($50 to $300,000) between your bank account and your Calvert Group
account with one phone call. Allow one or two business days after the call for
the transfer to take place; for money recently invested, allow normal check
clearing time (up to 10 business days) before redemption proceeds are sent to
your bank.
You may also arrange systematic monthly or quarterly investments (minimum $50)
into your Calvert Group account. After you give us proper authorization, your
bank account will be debited to purchase Fund shares. A debit entry will appear
on your bank statement. Share purchases made through Calvert Money Controller
will be subject to the applicable sales charge. If you would like to make
arrangements for systematic monthly or quarterly redemptions from your Calvert
Group account, call your broker or Calvert Group for a Money Controller
Application.
Telephone Transactions
Calvert may record all telephone calls.
If you have telephone transaction privileges, you may purchase, redeem, or
exchange shares, wire funds and use Calvert Money Controller by telephone. You
automatically have telephone privileges unless you elect otherwise. The Fund,
the transfer agent and their affiliates are not liable for acting in good faith
on telephone instructions relating to your account, so long as they follow
reasonable procedures to determine that the telephone instructions are genuine.
Such procedures may include recording the telephone calls and requiring some
form of personal identification. You should verify the accuracy of telephone
transactions immediately upon receipt of your confirmation statement.
Optional Services
Complete the "Option" sections of the application for the easiest way to
establish services.
The easiest way to establish optional services on your Calvert Group account is
to select the options you desire when you complete your account application. If
you wish to add other options later, you may have to provide us with additional
information and a signature guarantee. Please call Calvert Investor Relations at
800-368-2745 for further assistance. For our mutual protection, we may require a
signature guarantee on certain written transaction requests. A signature
guarantee verifies the authenticity of your signature, and may be obtained from
any bank, savings and loan association, credit union, trust company,
broker-dealer firm or member of a domestic stock exchange. A signature guarantee
cannot be provided by a notary public.
Householding of General Mailings
You can help in an effort to reduce Fund expenses and save paper and trees for
the environment.
If you have multiple accounts with Calvert, you may receive combined mailings of
some shareholder information, such as semi-annual and annual reports. Please
contact Calvert Investor Relations at 800-368-2745 to receive additional copies
of information.
Special Services and Charges
The 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 research fee for these special
services.
If you are purchasing shares of the Fund through a program of services offered
by a broker-dealer or financial institution, you should read the program
materials in conjunction with this Prospectus. Certain features may be modified
in these programs, and administrative charges may be imposed by the
broker-dealer or financial institution for the services rendered.
Tax-Saving Retirement Plans
Contact Calvert Group for complete information kits discussing the plans, and
their benefits, provisions and fees.
Calvert Group can set up your new account under one of several tax-deferred
plans. These plans let you invest for retirement and shelter your
investment income from current taxes. Minimums may differ from those listed
in the chart on page _____. Also, reduced sales charges may apply. See
"Exhibit A - Reduced Sales Charges."
Individual retirement accounts (IRAs): available to anyone who has earned
income. You may also be able to make investments in the name of your
spouse, if your spouse has no earned income. Qualified Profit-Sharing and
Money-Purchase Plans (including 401(k) Plans): available to self-employed
people and their partners, or to corporations and their employees.
Simplified Employee Pension Plan (SEP-IRA): available to self-employed people
and their partners, or to corporations. Salary reduction pension plans (SAR-SEP
IRAs) are also available to employers with 25 or fewer employees.
403(b)(7) Custodial Accounts: available to employees of most non-profit
organizations and public schools and universities.
SELLING YOUR SHARES
You may redeem all or a portion of your shares on any business day. Your shares
will be redeemed at the next net asset value calculated after your redemption
request is received and accepted. See the chart below for specific requirements
necessary to make sure your redemption request is acceptable. Remember that the
Fund may hold payment on the redemption of your shares until it is reasonably
satisfied that investments made by check or by Calvert Money Controller have
been collected (normally up to 10 business days).
Redemption Requirements To Remember
To ensure acceptance of your redemption request, please follow the procedures
described here and below.
Once your shares are redeemed, the proceeds will normally be sent to you on the
next business day, but if making immediate payment could adversely affect the
Fund, it may take up to seven (7) days. Calvert Money Controller redemptions
generally will be credited to your bank account on the first or second business
day after your phone call. When the New York Stock Exchange is closed (or when
trading is restricted) for any reason other than its customary weekend or
holiday closings, or under any emergency circumstances as determined by the
Securities and Exchange Commission, redemptions may be suspended or payment
dates postponed.
Minimum account balance is $1,000 per Fund.
Please maintain a balance in your account of at least $1,000 per Fund, per
class. If, due to redemptions, the account falls below $1,000, or you fail to
invest at least $1,000, your account may be closed and the proceeds mailed to
you at the address of record. You will be given notice that your account will be
closed after 30 days unless you make an additional investment to increase your
account balance to the $1,000 minimum.
HOW TO SELL YOUR SHARES
By Mail To:
Calvert Group
4550 Montgomery Ave.
Bethesda, MD 20814
Effective 4/1/95:
Calvert Group
P.O. Box 419544
Kansas City, MO
64179-6542
You may redeem available shares from your account at any time by sending a
letter of instruction, including your name, account and Fund number, the number
of shares or dollar amount, and where you want the money to be sent. Additional
requirements, below, may apply to your account. The letter of instruction must
be signed by all required authorized signers. If you want the money to be wired
to a bank not previously authorized, then a voided bank check must be enclosed
with your letter. If you do not have a voided check or if you would like funds
sent to a different address or another person, your letter must be signature
guaranteed.
Type of Registration Requirements
Corporations,
Associations Letter of instruction and a corporate resolution,
signed by person(s) authorized to act on the
account, accompanied by signature guarantee(s).
Trusts Letter of instruction signed by the Trustee(s)
(as Trustee), with a signature guarantee. (If the
Trustee's name is not registered on your account,
provide a copy of the trust document, certified
within the last 60 days.)
By Telephone
Please call 800-368-2745. You may redeem shares from your account by telephone
and have your money mailed to your address of record or wired to an address or
bank you have previously authorized. A charge of $5 is imposed on wire transfers
of less than $1,000. See "Telephone Transactions" on page ___.
Calvert Money Controller
Please allow sufficient time for Calvert Group to process your initial request
for this service (normally 10 business days). You may also authorize automatic
fixed amount redemptions by Calvert Money Controller. All requests must be
received by 4:00 p.m. (Eastern time). Accounts cannot be closed by this service.
Exchange to Another Calvert Group Fund
You must meet the minimum investment requirement of the other Calvert Group Fund
or Portfolio. You can only exchange between accounts with identical names,
addresses and taxpayer identification number, unless previously authorized with
a signature-guaranteed letter.
Systematic Check Redemptions
If you maintain an account with a balance of $10,000 or more, you may have
regular checks for a fixed amount sent to you on the 15th of each month simply
by sending a letter with all the information, including your account number, and
the dollar amount ($100 minimum). If you would like a regular check mailed to
another person or place, your letter must be signature-guaranteed.
Through your Broker
If your account is held in your broker's name ("street name"), you should
contact your broker directly to transfer, exchange or redeem shares.
DIVIDENDS, CAPITAL GAINS AND TAXES
Each year, the Funds distribute substantially all of their net investment income
and capital gains to shareholders.
Dividends from the Funds' net investment income are declared and paid on a
monthly basis. Net investment income consists of the interest income, net
short-term capital gains, if any, and dividends declared and paid on
investments, less expenses. Distributions of the Funds' net short-term capital
gains (treated as dividends for tax purposes) and its net long-term capital
gains, if any, are normally declared and paid by the Fund once a year; however,
the Fund does 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 generally
anticipated to be higher for Class A shares.
Dividend and Distribution Payment Options.
Dividends and any distributions are automatically reinvested in the same
Portfolio at net asset value (no sales charge), unless you elect to have the
dividends of $10 or more paid in cash (by check or by Calvert Money Controller).
Dividends and distributions may be automatically invested in an identically
registered account with the same account number in any other Calvert Group Fund
at net asset value. If reinvested in the same Fund account, new shares will be
purchased at net asset value on the reinvestment date, which is generally 1 to 3
days prior to the payment date. You must notify the Fund in writing prior to the
record date to change your payment options. If you elect to have dividends
and/or distributions paid in cash, and the U.S. Postal Service cannot deliver
the check, or if it remains uncashed for six months, it, as well as future
dividends and distributions, will be reinvested in additional shares.
"Buying a Dividend"
At the time of purchase, the share price of the Fund may reflect undistributed
income, capital gains or unrealized appreciation of securities. Any income or
capital gains from these amounts which are later distributed to you are fully
taxable. On the record date for a distribution, the Fund's 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, the Funds will mail you Form 1099-DIV indicating the federal tax
status of dividends and capital gain distributions paid to you by the Funds
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 three months prior 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 Fund
shares.
You may realize a capital gain or loss when you sell or exchange shares.
If you sell or exchange your Fund shares you will have a short or long-term
capital gain or loss, depending on how long you owned the shares which were
sold. In January, the Funds will mail you Form 1099-B indicating the date of and
proceeds from all sales, including exchanges. You should keep your annual
year-end account statements to determine the cost (basis) of the shares to
report on your tax returns.
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 U.S. 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 the
Funds to withhold 31% of your dividends and certain redemptions. In addition,
you may be subject to a fine. You will also be prohibited from opening another
account by exchange. If this TIN information is not received within 60 days
after your account is established, your account may be redeemed at the current
NAV on the date of redemption. The Funds reserve the right to reject any new
account or any purchase order for failure to supply a certified TIN.
EXHIBIT A
REDUCED SALES CHARGES (CLASS A ONLY)
You may qualify for a reduced sales charge through several purchase plans
available. You must notify the Fund at the time of purchase to take advantage of
the reduced sales charge.
Right of Accumulation. The sales charge is calculated by taking into account not
only the dollar amount of a new purchase of shares, but also the higher of cost
or current value of shares previously purchased in Calvert Group Funds that
impose sales charges. This automatically applies to your account for each new
purchase.
Letter of Intent. If you plan to purchase $50,000 or more of Fund shares over
the next 13 months, your sales charge may be reduced through a "Letter of
Intent." You pay the lower sales charge applicable to the total amount you plan
to invest over the 13-month period, excluding any money market fund purchases.
Part of your shares will be held in escrow, so that if you do not invest the
amount indicated, you will have to pay the sales charge applicable to the
smaller investment actually made. For more information, see the Statement of
Additional Information.
Group Purchases. If you are a member of a qualified group, you may purchase
shares of the Fund at the reduced sales charge applicable to the group taken as
a whole. The sales charge is calculated by taking into account not only the
dollar amount of the shares you purchase, but also the higher of cost or current
value of shares previously purchased and currently held by other members of your
group.
A "qualified group" is one which (i) has been in existence for more than six
months, (ii) has a purpose other than acquiring Fund shares at a discount, and
(iii) satisfies uniform criteria which enable CDI and dealers offering Fund
shares to realize economies of scale in distributing such shares. A qualified
group must have more than 10 members, must be available to arrange for group
meetings between representatives of CDI or dealers distributing the Fund's
shares, must agree to include sales and other materials related to the Fund in
its publications and mailings to members at reduced or no cost to CDI or
dealers, and must seek to arrange for payroll deduction or other bulk
transmission of investments to the Fund.
Pension plans may not qualify participants for group purchases; however, such
plans may qualify for reduced sales charges under a separate provision (see
below). Members of a group are not eligible for a Letter of Intent.
Retirement Plans Under Section 457, Section 403(b)(7), or Section 401(k). There
is no sales charge on shares purchased for the benefit of a retirement plan
under Section 457 of the Internal Revenue Code of 1986, as amended ("Code"), or
for a plan qualifying under Section 403(b)(7) of the Code if, at the time of
purchase, Calvert Group has been notified in writing that the 403(b)(7) plan has
at least 200 eligible employees. Furthermore, there is no sales charge on shares
purchased for the benefit of a retirement plan qualifying under Section 401(k)
of the Code if, at the time of such purchase, the 401(k) plan administrator has
notified Calvert Group in writing that a) its 401(k) plan has at least 200
eligible employees; or b) the cost or current value of shares the plan has in
Calvert Group of Funds (except money market funds) is at least $1 million.
Neither the Fund, nor CDI, nor any affiliate thereof will reimburse a plan or
participant for any sales charges paid prior to receipt of such written
communication and confirmation by Calvert Group. Plan administrators should send
requests for the waiver of sales charges based on the above conditions to:
Calvert Group Retirement Plans, 4550 Montgomery Avenue, Suite 1000N, Bethesda,
Maryland 20814.
Other Circumstances. There is no sales charge on shares of any fund (portfolio
or series) of the Calvert Group of Funds sold to (i) current and retired members
of the Board of Trustees/Directors of the Calvert Group of Funds, (and the
Advisory Council of the Calvert Social Investment Fund); (ii) directors,
officers and employees of the Advisor, Distributor, and their affiliated
companies; (iii) directors, officers and registered representatives of brokers
distributing the Fund's shares; and immediate family members of persons listed
in (i), (ii), and (iii), above; (iv) dealers, brokers, or registered investment
advisors that have entered into an agreement with CDI providing specifically for
the use of shares of the Fund (Portfolio or Series) in particular investment
programs or products (where such program or product already has a fee charged
therein) made available to the clients of such dealer, broker, or registered
investment advisor; and (v) trust departments of banks or savings institutions
for trust clients of such bank or savings institution.
Established Accounts. Shares of Calvert Income Fund may be sold at net asset
value to accounts opened on or before January 12, 1987.
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. Dividends and distributions from Calvert Group money market funds
used to purchase shares of the Fund will not be subject to the applicable sales
charge, effective April 1, 1995.
Reinstatement Privilege. If you redeem Fund shares and then within 30 days
decide to reinvest in the same Fund, you may do so at the net asset value next
computed after the reinvestment order is received, without a sales charge. You
may use the reinstatement privilege only once. The Fund reserves the right to
modify or eliminate this privilege.
Redemptions From Other Mutual Funds. You may purchase shares of the above funds
at net asset value, without sales charge, to the extent that the purchase
represents proceeds from a redemption (within the previous 60 days) of shares of
another mutual fund. When making a purchase at net asset value under this
provision, the Fund or Portfolio must receive one of the following with your
direct purchase order: (i) the redemption check representing the proceeds of the
shares redeemed, endorsed to the order of the Fund or Portfolio, or (ii) a copy
of the confirmation from the other fund, showing the redemption transaction.
Standard back office procedures should be followed for wire order purchases.
Purchases with redemptions from money market funds are not eligible for this
privilege. This provision is effective through March 15, 1995 only, but may be
extended at the discretion of the Distributor.
================================================================================
To Open an Account: Prospectus
800-368-2748 January 31, 1995
Yields and Prices:
Calvert Information Network THE CALVERT FUND
24 hours, 7 days a week
800-368-2745
Calvert U.S. Government Fund
Service for Existing Account:
Shareholders 800-368-2745 Calvert Income Fund
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
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
Effective April 1, 1995:
Calvert Group
c/o NFDS, 6th Floor
1004 Baltimore
Kansas City, MO 64105-1807
PRINCIPAL UNDERWRITER
Calvert Distributors, Inc. (effective 3/1/95)
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
Table of Contents
Fund Expenses
Financial Highlights
Investment Objectives and Policies
Yield and Total Return
Management of the Fund
SHAREHOLDER GUIDE:
Alternative Sales Options
How to Buy Shares
Net Asset Value
When Your Account Will Be Credited
Exchanges
Other Calvert Group Services
Selling Your Shares
How to Sell Your Shares
Dividends, Capital Gains and Taxes
Exhibit A - Reduced Sales Charges
