Page 1 of _____
SEC Registration Nos.
2-76510 and 811-3416
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-1A
REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OF 1933
Post-Effective Amendment No. 31 XX
and/or
REGISTRATION STATEMENT UNDER THE
INVESTMENT COMPANY ACT OF 1940
Amendment No. 31 XX
The Calvert Fund
(Exact Name of Registrant as Specified in Charter)
Calvert Small Cap Fund Only
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
(Address of Principal Executive Offices)
Registrant's Telephone Number: (301) 951-4800
William M. Tartikoff, Esq.
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
(Name and Address of Agent for Service)
It is proposed that this filing will become effective
Immediately upon filing on (date)
pursuant to paragraph (b) pursuant to paragraph (b)
60 days after filing on (date)
pursuant to paragraph (a) pursuant to paragraph (a)
XX 75 days after filing
pursuant to paragraph (a)(2)
of Rule 485.
Pursuant to the provisions of Rule 24f-2 under the Investment Company Act
of 1940, an indefinite number of shares of beneficial interest is being
registered by this Registration Statement. On November 29, 1995, Registrant
filed a Rule 24f-2 Notice for its fiscal year ended September 30, 1995 for
Income and U.S. Government Funds, and on May 30, 1995, Registrant filed a Rule
24f-2 Notice for Calvert Strategic Growth Fund for its fiscal year ended March
31, 1996.
The Calvert Fund
Form N-1A Cross Reference Sheet
Item number Prospectus Caption
1. Cover Page
2. Fund Expenses
3. Financial Highlights
Total Return
4. Investment Objective and Policies
Management of the Fund
5. Management of the Fund
6. Alternative Sales Options
Management of the Fund
Dividends, Capital Gains and Taxes
7. How to Buy Shares
Net Asset Value
Reduced Sales Charges
When Your Account Will Be Credited
Exchanges
8. Alternative Sales Options
How to Sell Your Shares
9. *
Statement of Additional Information Caption
10. Cover Page
11. Table of Contents
12. General Information
13. Investment Objective and Policies
Loans of Portfolio Securities
Repurchase Agreements
Investment Restrictions
14. Trustees and Officers
15. *
16. Investment Advisor and Investment
Manager Transfer and Shareholder
Servicing Agent Independent
Accountants and Custodians
17. Portfolio Transactions
18. *
19. Valuation of Shares
Purchase and Redemption of Shares
Reduced Sales Charge
20. Dividends and Taxes
21. Method of Distribution
22. Calculation of Total Return
23. Financial Statements
* Inapplicable or negative answer
<PAGE>
PROSPECTUS
__________, 1996
THE CALVERT FUND:
CALVERT SMALL CAP FUND
4550 Montgomery Avenue, Bethesda, Maryland 20814
INVESTMENT OBJECTIVE
The investment objective of Calvert Small Cap Fund (the "Fund") is to
achieve long-term capital appreciation by investing primarily in the stock of
small companies <F1> publicly traded in the United States that on the basis of
market capitalization represent the smaller 55% of all publicly traded
companies. In seeking capital appreciation, the Fund invests primarily in common
stocks of small capitalized growth companies that have historically exhibited
exceptional growth characteristics and that, in the Adviser's opinion, have
strong earnings potential relative to the U.S. market as a whole. The Fund will
take reasonable risks in seeking to achieve its investment objective. There is,
of course, no assurance that the Fund will be successful in meeting its
objective since there is risk involved in the ownership of all equity
securities. The Fund will invest in enterprises that make a significant positive
contribution to our society through their products and services and through the
way they do business.
<F1> Currently those with a total capitalization for initial purchases of less
than $1 billion at the time of the Fund's initial investment.
WHETHER THIS FUND IS FOR YOU
This Fund employs aggressive investment strategies that have the potential
for yielding high returns. However, share prices may experience substantial
fluctuations so that your shares may be worth less than when you originally
purchased them. The Fund seeks long-term growth and does not attempt to maintain
a balanced portfolio. Accordingly, the Fund should not be used to meet
short-term financial needs.
PURCHASE INFORMATION
The Fund offers two classes of shares with different expense levels and
sales charges. If you purchase Class A shares you will pay a sales charge at the
time you purchase the shares ("front-end sales charge"), and the Fund pays Rule
12b-1 fees. Class C shares, which are not available through all dealers, have no
front-end or back-end sales charge, but have higher expenses than Class A
shares, including higher Rule 12b-1 fees. The Class you choose depends 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.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION, NOR HAS THE
COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED ON THE ACCURACY OR ADEQUACY
OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
SHARES OF THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR
ENDORSED BY, ANY BANK, AND ARE NOT INSURED BY THE FDIC OR ANY OTHER AGENCY. WHEN
INVESTORS SELL SHARES OF THE FUND, THE VALUE MAY BE HIGHER OR LOWER THAN THE
AMOUNT ORIGINALLY PAID.
TO OPEN AN ACCOUNT
Call your broker, or complete and return the enclosed Account Application.
Minimum initial investment is $2,000 (may be lower for certain retirement
plans).
ABOUT THIS PROSPECTUS
Please read this Prospectus for information you should know before
investing, and keep it for future reference. A Statement of Additional
Information for the Fund dated _________, 1996 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.
FUND EXPENSES
A. Shareholder Transaction Costs Class A Class C
Maximum Front-End Sales
Charge on Purchases
(as a percentage of offering price) 4.75% None
Maximum Contingent Deferred
Sales Charge None None
B. Annual Fund Operating Expenses
(as a percentage of average net assets)
Management Fees _.__% _.__%
Rule 12b-1 Service and Distribution Fees 0.25% 1.00%
Other Expenses (Estimated) _.__% _.__%
Total Fund Operating Expenses _.__% _.__%
C. Example: You would pay the following expenses on a $1,000 investment,
assuming: (1) 5% annual return; (2) redemption at the end of each period; and
(3) for Class A, payment of maximum initial sales charge at time of purchase.
1 Year 3 years 5 years 10 years
Class A $__ $___ $__ $___
Class C $__ $___ $__ $___
The example, which is hypothetical, should not be considered a
representation of past or future expenses. Actual expenses and return may be
higher or lower than those shown.
Explanation of Table: The purpose of the table is to assist you in
understanding the various costs and expenses that an investor in the Fund would
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
the Advisor for managing the Fund's investments and business affairs. Management
fees include the subadvisory fee paid by Calvert Asset Management Company, Inc.
(the "Advisor") to Portfolio Advisory Services, Inc. (the "Subadvisor"), and the
administrative service fee paid to Calvert Administrative Services Company. (See
"Management of the Fund"). The performance adjustment to the advisory fee may
cause the Management Fees to be as high as _.__% or as low as _.__%, depending
on the performance of the Fund. The Fund incurs Other Expenses for maintaining
shareholder records, furnishing shareholder statements and reports, and other
services. Management Fees and Other Expenses are reflected in the Fund's daily
share price and are not charged directly to individual shareholder accounts.
Please refer to "Management of the Fund" for further information. The Advisor
may voluntarily defer fees or assume expenses of the Fund. The Investment
Advisory Agreement provides that the Advisor may, to the extent permitted by
law, later recapture any fees it deferred or expenses it assumed during the two
prior years.
The Fund's Rule 12b-1 fees include an asset-based sales charge. Thus,
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. (the "NASD").
INVESTMENT OBJECTIVE AND POLICIES
Investment Objective
Calvert Small Cap Fund seeks to provide long-term capital appreciation by
investing primarily in equity securities of companies that have small market
capitalizations. In seeking capital appreciation, the Fund invests primarily in
common stocks of small capitalized growth companies that have historically
exhibited exceptional or strong growth characteristics and that, in the
Adviser's opinion, have strong and sustainable earnings potential relative to
the U.S. market as a whole. The Fund's investment objective is not fundamental
and may be changed without shareholder approval.
Under normal circumstances, the Fund will invest at least 65% of its total
assets in equity securities with market capitalizations representing the smaller
55 percent of all companies publicly traded in the United States (currently
those with a total market capitalization of under $1 billion at the time of the
Fund's initial investment).
The Fund considers issuers of all industries with operations in all
geographic markets, and does not seek interest income or dividends. Equity
securities may include common stocks, preferred stocks, convertible securities
and warrants. In selecting equity investments, the Fund focuses on individual
companies by screening over nine thousand stocks traded on all major U.S. stock
exchanges. The Fund invests primarily in common stocks, including American
Depositary Receipts ("ADRs"). By applying proprietary stock selection criteria,
the Fund identifies suitable investments to buy. The Fund may hold cash or cash
equivalents for temporary defensive purposes or to enable it to take advantage
of buying opportunities. There is, of course, no assurance that the Fund will be
successful in meeting its objective.
Companies whose capitalization increases or decreases after initial
purchase by the Fund continue to be considered small-capitalized for purposes of
the 65% policy. Accordingly, less than 65% of the Fund's total assets may be
invested in securities of issuers with market capitalizations representing the
smaller 55 percent of all companies publicly traded in the United States
(currently those with a total market capitalization of less than $1 billion).
The Portfolio will normally be as fully invested as practicable in common
stocks (including ADRs), but also may invest in warrants and rights to purchase
common stocks and in debt securities and preferred stocks convertible into
common stocks (collectively, "equity securities").
INVESTMENT TECHNIQUES AND RELATED RISKS
Risks
A company's market capitalization is the total market value of its
outstanding common stock. The value of the Fund's investments will vary from day
to day, and generally reflect market conditions, interest rates and other
company, political, or economic news. In the short-term, stock prices can
fluctuate dramatically in response to these factors. Over time, however, stocks
have shown greater growth potential than other types of securities.
Small cap issuers
While any investment in securities carries a certain degree of risk, the
approach of the Fund is designed to maximize growth in relation to the risks
assumed. The securities of small cap issuers may be less actively traded than
the securities of larger issuers, may trade in a more limited volume, and may
change in value more abruptly than securities of larger companies. Information
concerning these securities may not be readily available so that the companies
may be less actively followed by stock analysts. Small-cap issuers do not
usually participate in market rallies to the same extent as more widely-known
securities, and they tend to have a relatively higher percentage of insider
ownership.
Investing in smaller, new issuers generally involves greater risk than
investing in larger, established issuers. Companies in which the Fund is likely
to invest may have limited product lines, markets or financial resources and may
lack management depth. The securities in such companies may also have limited
marketability and may be subject to more abrupt or erratic market movements than
securities of larger, more established companies or the market averages in
general. Accordingly an investment in the Fund may not be appropriate for all
investors.
Temporary defensive positions
Under normal market conditions the Fund strives to be fully invested in
securities. However, for temporary defensive purposes -- which may include a
lack of adequate purchase candidates or an unfavorable market environment -- the
Fund may invest up to 35% of its assets in cash or cash equivalents. Cash
equivalents include instruments such as, but not limited to, U.S. government and
agency obligations, certificates of deposit, bankers' acceptances, time
deposits, commercial paper, short-term corporate debt securities and repurchase
agreements.
The Fund may invest in debt obligations
Although the Fund invests primarily in equity securities, it may invest up
to 35% of its assets in debt securities, excluding money market instruments.
These debt securities may consist of investment grade and noninvestment grade
obligations. Investment grade obligations are those 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 unrated, are determined by the
investment subadvisor to be of equivalent credit quality. Noninvestment grade
(high-yield/high-risk) securities are those rated below Baa or BBB, or unrated
obligations that the investment subadvisor has determined are not
investment-grade; such securities have speculative characteristics. The Fund
intends to limit its investments in lower than Baa-quality debt securities to 5%
of its assets. The Fund will not buy debt securities rated lower than C.
Interest-rate risks
All fixed income instruments are subject to interest-rate risk; that is, if
market interest rates rise, the current principal value of a bond will decline.
In general, the longer the maturity of the bond, the greater the decline in
value will be.
The Fund may use options and futures as defensive strategies
In extraordinary circumstances, the Fund may use options and futures
contracts to increase or decrease its exposure to changing security prices,
interest rates, or other factors that affect security values. These techniques
may involve derivative transactions such as buying and selling options and
futures contracts and leveraged notes, entering into swap agreements, and
purchasing indexed securities. The Fund can use these practices only as
protection against an adverse move of the holdings in the Fund to adjust the
risk and return characteristics of the Fund. The decision to invest in these
instruments will be based on market conditions, regulatory limits and tax
considerations. If market conditions are judged incorrectly, a strategy 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 limitation on
illiquid securities. See below and the Statement of Additional Information for
more details about these strategies.
Risk of using defensive strategies
There can be no assurance that engaging in options, futures, or any other
investment strategy will be successful. While defensive strategies are designed
to protect the Fund from potential declines, if market values or other economic
factors are misgauged, the Fund may be worse off than had it not employed the
defensive strategy. While an attempt is made to assess market and equity risk
and thereby prevent declines in the value of the Fund's portfolio holdings,
there is a risk of imperfect or no correlation between price movements of
portfolio investments and instruments used as part of an investment strategy, so
that a loss may be incurred. While such strategies can reduce the risk of loss,
they can also reduce the opportunity for gain since they can or may offset
favorable price movements. The use of these strategies may result in a
disadvantage to the Fund if the Fund is not able to purchase or sell a portfolio
holding at an optimal time due to the need to cover its transaction in its
segregated account, or due to the inability of the Fund to liquidate its
position because of its relative illiquidity.
Repurchase agreements
Repurchase agreements are arrangements under which the Fund buys securities
and the seller simultaneously agrees to repurchase the securities at a specified
time and price. The Fund may engage in repurchase agreements to earn a higher
rate of return than it could earn simply by investing in the obligation which is
the subject of the repurchase agreement. The Fund will only engage in repurchase
agreements with recognized securities dealers and banks determined to present
minimal credit risk by the Advisor under the direction and supervision of the
Fund's Board of Trustees. In addition, the Fund will only engage in repurchase
agreements reasonably designed to fully secure during the term of the agreement,
the seller's obligation to repurchase the underlying security. The Fund will
monitor the market value of the underlying security during the term of the
agreement. If the seller defaults on its obligation to repurchase and the value
of the underlying security declines, the Fund may incur a loss and may incur
expenses in selling the underlying security. Repurchase agreements are always
for periods of less than one year, and are considered illiquid if not terminable
within seven days.
The Fund may invest up to 15% of its assets in ADRs.
U.S. dollar-denominated ADRs, which are traded in the U.S. on exchanges or
over the counter, are receipts typically issued by a U.S. bank or trust company
which evidence ownership of underlying securities of a foreign corporation. By
investing in ADRs rather than directly in foreign issuers' stock, the Fund may
avoid currency and some liquidity risks, since the information available for
ADRs is subject to the more uniform and more exacting accounting, auditing and
financial reporting standards of the domestic market or exchange on which they
are traded. In general, there is a large, liquid market in the U.S. for many
ADRs.
High Social Impact Investments
The Fund has adopted a nonfundamental policy that permits it to invest up
to one percent of its assets in investments in securities that offer a rate of
return below the then-prevailing market rate and that present attractive
opportunities for furthering the Fund's social criteria ("High Social Impact
Investments"). These securities are typically illiquid and unrated and are
generally considered noninvestment grade debt securities, which involve a
greater risk of default or price decline than investment grade securities.
Through diversification, credit analysis and limited maturity, investment risk
can be reduced, although there can be no assurance that losses will not occur.
SOCIAL SCREENS
The Fund carefully reviews company policies and behavior regarding social
issues important to quality of life:
-Environment
-Weapons Systems
-Employee Relations
-Product Criteria
Once equity and debt securities are determined to fall within the
investment objective and policies of the Fund and are deemed financially viable
investments, they are screened according to the social criteria described below.
These social screens are applied to potential investment candidates by the
Advisor in consultation with the Subadvisor. However, the Fund may invest in
repurchase agreements, U.S. Treasury obligations and commodities, without regard
to the social criteria.
The following criteria may be changed by the Fund's Board of Trustees
without shareholder approval:
(1) The Fund avoids investing in companies that, in the Advisor's opinion,
have significant or historical patterns of violating environmental regulations,
or otherwise have an egregious environmental record. Additionally, the Fund will
avoid investing in nuclear power plant operators and owners, or manufacturers of
key components in the nuclear power process.
(2) The Fund will not invest in companies that are listed among the top 100
weapons systems contractors, or major nuclear weapons systems contractors.
(3) The Fund will not invest in companies that, in the Advisor's opinion,
have significant or historical patterns of discrimination against employees on
the basis of race, gender, religion, age, disability or sexual orientation, or
in companies that have major labor-management disputes.
(4) The Fund will not invest in companies that are significantly involved
in the manufacture of tobacco or alcohol products. The Fund will not invest in
companies that make products or offer services that, under proper use, in the
Advisor's opinion, are considered harmful.
While the Fund may invest in companies that exhibit positive social
characteristics, it makes no explicit claims to seek out companies with such
practices.
Additional policies and restrictions
The Fund's Statement of Additional Information describes additional
policies and restrictions concerning the portfolio investments of the Fund.
TOTAL RETURN
The Fund may advertise total return for each class. Total return is based
on historical results and is 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 the 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 performance of the class over a stated
period of time. An average annual total return ("return with maximum load")
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 maximum 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 "return without maximum load" do not reflect deduction of
the sales charge. You should consider these return figures only if you qualify
for a reduced sales charge, or for purposes of comparison with comparable
figures which also do not reflect a sales charge, such as mutual fund averages
compiled by Lipper Analytical Services, Inc. ("Lipper"). 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 Board of Trustees supervises the Fund's activities and reviews its
contracts with companies that provide it with services.
The 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 Trust are the Calvert Income Fund and
Calvert Strategic Growth Fund.
The Trust is not required to hold annual shareholder meetings, but special
meetings may be called for purposes such as electing Trustees, changing
fundamental policies, or approving a management contract. As a shareholder, you
receive one vote for each share of the Fund you own, except that matters
affecting classes differently, such as Distribution Plans, will be voted on
separately by class.
Calvert Asset Management serves as Advisor to the Fund.
Calvert Asset Management Company, Inc. ("CAM" or 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 Fund pays all other operating expenses as noted in
the Statement of Additional Information.
Calvert Group is one of the largest investment management firms in the
Washington, D.C. area.
Calvert Group, Ltd., parent of the 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
___________, 1996, Calvert Group managed and administered assets in excess
of $_._ billion and more than 200,000 shareholder and depositor accounts. The
Advisor receives a fee based on a percentage of the Fund's assets and the Fund's
performance.
The Investment Advisory Agreement between the Fund and the Advisor provides
that the Advisor is entitled to a base annual fee, payable monthly, of _.__% of
the Fund's average daily net assets. The Advisor may earn (or have its base fee
reduced by) a performance adjustment based on the extent to which performance of
the Fund exceeds or trails the Russell 2000 Index:
Performance versus the Performance Fee
Russell 2000 Index Adjustment
30% to less than 60% 0.05%
60% to less than 90% 0.10%
90% or more 0.15%
The Advisor may in its discretion defer its fees or assume the Fund's
operating expenses. The Investment Advisory Agreement provides that the Advisor
may, to the extent permitted by law, recapture any fees it defers or expenses it
assumes through December 31, 1996. The Advisor has until December 31, 1998 to
recapture fees deferred or expenses reimbursed during the previous two-year
period.
Portfolio Advisory Services, Inc. is the Fund's Subadvisor.
Portfolio Advisory Services, Inc. ("PASI" or the "Subadvisor") is the
investment subadvisor to the Fund. Its principal business office is 725 South
Figueroa Street, Suite 2328, Los Angeles, California, 90017. As of March 31,
1996 PASI managed in excess of $359 million, including mutual fund assets. The
Subadvisor manages the investment and reinvestment of the assets of the Fund,
although the Advisor may screen potential investments for compatibility with the
Fund's social criteria. PASI's investment style features quantitative screens
and in-depth "bottom-up" fundamental analysis to identify superior growth
stocks.
Portfolio Manager
The portfolio management team for the Calvert Small Cap Fund (since
inception) is led by Cedd Moses, Director and Managing Director of Investments
of PASI, and PASI's principal shareholder. Mr. Moses earned a Bachelor of
Science in Mechanical Engineering from UCLA in 1982, and subsequently worked
with several securities firms before founding PASI in 1988.
The Investment Subadvisory Agreement between the Advisor and the Subadvisor
provides that the Subadvisor is entitled to a base Subadvisory fee of 0.__% of
the Fund's average daily net assets managed by the Subadvisor. The Subadvisor's
fee is paid by the Advisor out of the fee the Advisor receives from the Fund.
The Subadvisor may earn (or have its base fee reduced by) a performance
adjustment based on the extent to which performance of the Fund exceeds or
trails the Russell 2000 Index:
Performance versus the Performance
Russell 2000 Index Fee Adjustment
30% to less than 60% 0.025%
60% to less than 90% 0.050%
90% or more 0.075%
Calvert Administrative Services Company provides administrative services
for the Fund.
Calvert Administrative Services Company ("CASC"), an affiliate of the
Advisor, has been retained by the Fund to provide certain administrative
services necessary to the conduct of its affairs, including the preparation of
regulatory filings and shareholder reports, the daily determination of its net
asset value per share and dividends, and the maintenance of its portfolio and
general accounting records. For providing such services, CASC receives an annual
fee from the Fund, payable monthly, of 0.__% of the Fund's 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.
An account application should accompany 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 than Class A shares
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 0.35% annually of the average daily net asset value of Class A
shares. 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.
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. Class A shares may also be more
appropriate for larger accounts or if you plan to hold the shares for several
years. Class C shares are not available for investments of $1 million or more.
Class A Shares
Class A shares are offered at net asset value plus a front-end sales charge
as follows:
As a % of As a % of Net
Offering Price Amount Invested
Amount of Investment
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
Less than $50,000 4.75% 4.99%
$50,000 but less than $100,000 3.75% 3.90%
$100,000 but less than $250,000 2.75% 2.83%
$250,000 but less than $500,000 1.75% 1.78%
$500,000 but less than $1,000,000
1.00% 1.01%
$1,000,000 and over 0.00% 0.00%
Concession to
Dealers as a %
of Amount
Invested
Amount of Investment
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
Less than $50,000 4.00%
$50,000 but less than $100,000 3.00%
$100,000 but less than $250,000 2.25%
$250,000 but less than $500,000 1.25%
$500,000 but less than $1,000,000
0.80%
$1,000,000 and over 0.25%*
*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
twelve 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 broker-dealers with which it has
selling agreements, CDI may reallow up to the full applicable sales charge.
Broker-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 0.35% of the average daily net asset value of Class A shares, to
pay expenses associated with the distribution and servicing of Class A shares.
Amounts paid by the Fund to CDI under the Class A Distribution Plan are used to
pay to broker-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 up to the remaining .10% 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.
Class C Shares
Class C shares are not available through all broker-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
broker-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.
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 broker-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 and in compliance with the rules of the
NASD.
Broker-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 payable to the Fund
and mail it with your and mail it with your
application to: investment slip to:
Calvert Group Calvert Group
P.O. Box 419544 P.O. Box 419739
Kansas City, MO Kansas City, MO
64141-6544 64141-6739
By Registered, Certified,
or Overnight Mail:
Calvert Group Calvert Group
c/o NFDS, 6th Floor c/o NFDS, 6th Floor
1004 Baltimore 1004 Baltimore
Kansas City, MO Kansas City, MO
64105-1807 64105-1807
Through Your Broker $2,000 minimum $250 minimum
At the Calvert Visit the Calvert Branch Office to make investments by check.
Branch Office See back cover page for the address.
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, or "NAV," refers to the worth of one share of the Fund.
NAV is computed per class by adding the value of all portfolio holdings, plus
other assets, deducting liabilities, and then dividing the result by the number
of shares outstanding. This value is calculated at the close of the 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 1/1000th of a share).
Fund securities and other assets are valued based on market quotations,
except that securities maturing within 60 days are valued at amortized cost. If
quotations are not available, securities are valued by a method that the Board
of Trustees believes accurately reflects fair value. Financial futures are
valued at the settlement price established each day by the board of trade or
exchange on which they are traded.
WHEN YOUR ACCOUNT WILL BE CREDITED
Before you buy shares, please read the following information to make sure
your investment is accepted and credited properly.
Your purchase will be processed at the next offering price based on the
next net asset value calculated after your order is received and accepted. If
your purchase is made by federal funds wire, or exchange, and 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 your 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
canceled 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 may hold
payment on redemptions until it is reasonably satisfied that the investment is
collected (normally up to 10 business days from purchase date). To avoid this
collection period, you can wire federal funds from your bank, which may charge
you a fee. Checks purchases received at the branch location will be credited
the next business day. Any check purchase received without an investment slip
may cause delayed crediting.
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
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.
If your investment goals change, the Calvert Group of Funds has a variety
of investment alternatives that includes common stock funds, tax-exempt and
corporate bond funds, and money market funds. The exchange privilege is a
convenient way to buy shares in other Calvert Group Funds in order to respond to
changes in your goals or in market conditions. However, the Fund is intended as
a long-term investment and not for frequent short-term trades. Before you make
an exchange from a Fund, please note the following:
Call your broker or a Calvert representative for information and a
prospectus for any of Calvert's other Funds registered in your state. Read the
prospectus of the Fund into which you want to exchange for relevant information,
including class offerings. The exchange privilege is only available in states
where shares of the Fund into which you want to exchange are registered for
sale.
Complete and sign an application for an account in the Fund or Portfolio
into which you want to invest, taking care to register your new account in the
same name and taxpayer identification number as your existing Calvert
account(s). Exchange instructions may then be given by telephone if you have not
declined telephone transaction privileges and the shares are not in certificate
form. See "Selling Your Shares" and "How to Sell Your Shares-- By Telephone
and-- Exchange to Another Calvert Group Fund."
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. Class C shares may be exchanged for
shares of another fund, but will be charged the front-end sales charge, if
applicable.
Shareholders (and those managing multiple accounts) who make two purchases
and two exchange redemptions of shares of the same Fund 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.
For purposes of the exchange privilege, the Fund is related to Summit Cash
Reserves Fund by investment and investor services. The Fund reserves the right
to terminate or modify the exchange privilege in the future upon 60 days'
written notice.
OTHER CALVERT GROUP SERVICES
Calvert Information Network
24 hour performance and price information
Calvert Group has a round-the-clock telephone service that lets existing
customers obtain prices, yields, 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
account in the Fund with one phone call. Allow 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. All Calvert Money Controller transaction requests must be received by
4:00 p.m. Eastern time.
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 account, call your broker or Calvert for a Money Controller Application.
Telephone Transactions
Calvert may record all telephone calls.
You may purchase, redeem, or exchange shares, wire funds and use Calvert
Money Controller by telephone if you have pre-authorized service instructions.
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 application for the easiest way to establish services.
The easiest way to establish optional services on your Calvert Group
account is to select the options you desire when you complete your account
application. If you wish to add other options later, you may have to provide us
with additional information and a signature guarantee. Please call your broker
or Calvert Investor Relations at 800-368-2745 for further assistance. For our
mutual protection, we may require a signature guarantee on certain written
transaction requests. A signature guarantee verifies the authenticity of your
signature, and may be obtained from any bank, savings and loan association,
credit union, trust company, broker-dealer firm or member of a domestic stock
exchange. A signature guarantee cannot be provided by a notary public.
Householding of General Mailings
Householding reduces 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 of the Fund may
be modified in these programs, and administrative charges may be imposed 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 in the Fund under one of several
tax-deferred plans. These plans let you invest for retirement and shelter your
investment income from current taxes. Minimums may differ from those listed in
the "How to Buy Shares" chart. Also, reduced sales charges may apply. See
"Exhibit A - Reduced Sales Charges."
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.
403(b)(7) Custodial Accounts: available to employees of most non-profit
organizations and public schools and universities.
HOW TO SELL YOUR SHARES
You may redeem all or a portion of your shares on any business day. Your
shares will be redeemed at the next net asset value calculated after your
redemption request is received and accepted. See below for specific requirements
necessary to make sure your redemption request is accepted. 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 7 days. Calvert Money Controller redemptions
generally will be credited to your bank account on the second business day after
your phone call. When the New York Stock Exchange is closed (or when trading is
restricted) for any reason other than its customary weekend or holiday closings,
or under any emergency circumstances as determined by the Securities and
Exchange Commission, redemptions may be suspended or payment dates postponed.
Minimum account balance is $1,000 per Fund, per class.
Please maintain a balance in your account of at least $1,000 per Fund, per
class. If, due to redemptions, it falls below $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.
By Mail To:
Calvert Group
P.O. Box 419544
Kansas City, MO 64179-6544
You may redeem available funds 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 corporate resolution,
signed by person(s) authorized to act on the
account, accompanied by signature guarantee(s).
Trusts Letter of instruction signed by the Trustee(s)
(as Trustees), with a signature guarantee. (If
the Trustee's name is not registered on your
account, provide acopy 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." If for any
reason you are unable to reach the Fund by telephone, whether due to mechanical
difficulties, heavy market volume, or otherwise, you may send a written
redemption request to the Fund by overnight mail, or, if your account is held
through a broker, see "Through Your Broker" below.
Calvert Money Controller
Please allow sufficient time for Calvert Group to process your initial
request for this service (normally 10 business days). Your request for a
redemption by this service 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. You can only exchange between accounts with identical names, addresses and
taxpayer identification number, unless previously authorized with a
signature-guaranteed letter. See "Exchanges."
Systematic Check Redemptions
If you have an account with a balance of $10,000 or more, you may have up
to two (2) redemption checks for a fixed amount sent to you on the 15th of each
month, simply by sending a letter with all information, including your account
number, and the dollar amount ($100 minimum). If you would like a regular check
mailed to another person or place, your letter must be signature guaranteed.
Through your Broker
If your account is held in your broker's name ("street name"), you should
contact your broker directly to transfer, exchange or redeem shares.
DIVIDENDS AND TAXES
Each year, the 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
annually. Net investment income consists of the interest income, profits from
securities loans, net short-term capital gains, if any, and dividends, less
expenses. Distributions of net long-term capital gains, if any, are normally
declared and paid by the 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 because of different fees. Dividend payments are anticipated generally
to be higher for Class A shares.
Dividend Payment Options
Dividends and distributions are automatically reinvested in additional
shares, unless on the account application you request to have them paid to you
in cash (by check or by Calvert Money Controller). You may also request to have
your dividends and distributions from the Fund invested at net asset value
("NAV") in shares of any other Calvert Group Fund. If you choose to have them
reinvested in the same Fund, the new shares will be purchased at the NAV (no
sales charge) on the reinvest date, which is generally 1 to 3 days prior to the
payment date. You must be a shareholder on the record date to receive dividends.
You must notify the Fund in writing prior to the record date if you want 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 as dividends or capital gains distributions. On the record
date for a distribution, the Fund's per share value is reduced by the amount of
the distribution. If you buy shares just before the record date ("buying a
dividend") you will pay the full price for the shares and then receive a portion
of the price back as a taxable distribution.
Federal Taxes
The Fund normally distributes all net income and capital gain to
shareholders. These distributions are taxable to you regardless of whether they
are taken in cash or reinvested. Distributions of net investment income are
taxable as ordinary income; distributions of long-term capital gains are taxable
as long-term capital gains regardless of how long you have held the shares.
Dividends and distributions declared during October, November or December and
paid in January of the following year are taxable in the year they are declared.
The Fund will mail you Form 1099-DIV in January indicating the federal tax
status of your dividends. If distributions exceed the Fund's net investment
income and capital gain for the year, the excess will reduce your tax basis for
your shares in the Fund.
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 proceeds
from all sales, including exchanges. You should keep your annual year-end
account statements to determine the cost (basis) of the shares to report on your
tax returns.
Taxpayer Identification Number, Back-up Withholding
If we do not have your correct Social Security or Taxpayer Identification
Number ("TIN") and a signed certified application or Form W-9, federal law
requires the Fund to withhold 31% of your dividends, capital gain distributions,
and redemptions. In addition, you may be subject to a fine. You will also be
prohibited from opening another account by exchange. If this TIN information is
not received within 60 days after your account is established, your account may
be redeemed at the current NAV on the date of redemption. The Fund reserves the
right to reject any new account or any purchase order for failure to supply a
certified TIN.
EXHIBIT A (CLASS A ONLY)
REDUCED SALES CHARGES
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 (1) has been in existence for more than
six months, (2) has a purpose other than acquiring Fund shares at a discount,
and (3) 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 (the
"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 (see below). 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 (see below); 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: (1) 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); (2)
directors, officers and employees of the Advisor, Distributor, and their
affiliated companies; (3) directors, officers and registered representatives of
brokers distributing the Fund's shares; and immediate family members of persons
listed in (1), (2), or (3) above; (4) 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; (5) trust departments of banks or savings institutions for
trust clients of such bank or savings institution; and (6) 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 Code, and "rabbi trusts."
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.
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:
800-368-2748 Prospectus
____________, 1996
THE CALVERT FUND
Calvert Small Cap Fund
Performance and Prices:
Calvert Information Network
24 hours, 7 days a week
800-368-2745
Service for Existing Accounts:
Shareholders 800-368-2745
Brokers 800-368-2746
TDD for Hearing Impaired:
800-541-1524
Branch Office:
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
Registered, Certified
or Overnight Mail:
Calvert Group
c/o NFDS, 6th Floor
1004 Baltimore
Kansas City, MO 64105
Calvert Group Web-Site
Address: http://www.calvertgroup.com
PRINCIPAL UNDERWRITER
Calvert Distributors, Inc.
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
Table of Contents
Fund Expenses
Investment Objective and Policies
Investment Techniques and Related Risks
Social Screens
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
How to Sell Your Shares
Dividends and Taxes
Exhibit A - Reduced Sales Charges
<PAGE>
The Calvert Fund:
Calvert Small Cap Fund
Statement of Additional Information
___________, 1996
INVESTMENT ADVISOR
Calvert Asset Management Company, Inc.
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
TRANSFER AGENT
Calvert Shareholder Services, Inc.
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
INDEPENDENT ACCOUNTANT
[ ]
PRINCIPAL UNDERWRITER
Calvert Distributors, Inc.
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
SUBADVISOR
Portfolio Advisory Services, Inc.
725 South Figueroa Street
Suite 2328
Los Angeles, California 90017
TABLE OF CONTENTS
Investment Objective and Policies 1
Investment Restrictions 4
Dividends, Distributions and Taxes 5
Net Asset Value 7
Calculation of Total Return 8
Purchase and Redemption of Shares 8
Reduced Sales Charge (Class A) 9
Advertising 9
Trustees and Officers 10
Investment Advisor and Subadvisor 12
Method of Distribution 12
Transfer and Shareholder Servicing Agent 13
Fund Transactions 13
Independent Accountant and Custodians 14
General Information 14
Financial Statements 14
Appendix 14
STATEMENT OF ADDITIONAL INFORMATION-___________, 1996
THE CALVERT FUND
CALVERT SMALL CAP FUND
4550 Montgomery Avenue, Bethesda, Maryland 20814
New Account (800) 368-2748
Information: (301) 951-4820
Shareholder (800) 368-2745
Services: (301) 951-4810
Broker (800) 368-2746
Services:(301) 951-4850
TDD for the Hearing-
Impaired: (800) 541-1524
This Statement of Additional Information is not a prospectus. Investors
should read the Statement of Additional Information in conjunction with the
Fund's Prospectus dated ____________, 1996, which may be obtained free of charge
by writing the Fund at the above address or calling the Fund.
INVESTMENT OBJECTIVE
Calvert Small Cap Fund (the "Fund") is a diversified series of The Calvert
Fund, an open-end management investment company. The investment objective of the
Fund is to achieve long-term capital appreciation by investing primarily in the
stock of small companies <F1> publicly traded in the United States that on the
basi of market capitalization represent the smaller 55%ofall publicly traded
companies. The following discussion supplements the discussion in the
Prospectus. Unless otherwise specified, the investment objective, programs and
restrictions of the Fund are not fundamental policies. The operating policies of
the Fund are subject to change by its Board of Directors without shareholder
approval.
In seeking capital appreciation, the Fund invests primarily in common
stocks of small capitalized growth companies that have historically exhibited
exceptional growth characteristics and that, in the Adviser's opinion, have
strong earnings potential relative to the U.S. market as a whole. The Fund will
take reasonable risks in seeking to achieve its investment objective. There is,
of course, no assurance that the Fund will be successful in meeting its
objective since there is risk involved in the ownership of all equity
securities. The Fund will invest in enterprises that make a significant positive
contribution to our society through their products and services and through the
way they do business. The Fund's investments are based on analyses of cash flow,
book value, dividend growth potential, quality of management, adequacy of
revenues, earnings and capitalization, and future relative earnings growth.
The Fund's investment philosophy emphasizes sustained growth and
concentrates on the securities of issuers not generally recognized by the
investment community that have a consistent earnings-per-share growth, a unique
product or service, conservative accounting and financial policies, and
management capable of long-term growth. While the Fund's policies may, from time
to time, result in income return, any such return will be incidental to the
objective of long-term capital appreciation.
Under normal market conditions, the Fund strives to be fully invested. In a
declining market, the Fund may raise cash or employ other defensive strategies
in an attempt to protect against the decline of its investments.
<F1> Currently those with a total capitalization for initial purchases of less
than $1 billion at the time of the Fund's initial investment.
SPECIAL RISKS OF THE FUND'S DEFENSIVE INVESTMENT STRATEGIES
The Fund may purchase put and call options, and write (sell) covered put
and call options on equity and debt securities and stock or debt indices. The
Fund may purchase or write both exchange-traded and OTC options. These defensive
strategies may also be used with respect to futures. An option is a legal
contract that gives the holder the right to buy or sell a specified amount of
the underlying interest at a fixed or determinable price (called the exercise or
strike price) upon exercise of the option. A futures contract is an agreement to
take delivery or to make delivery of a standardized quantity and quality of a
certain commodity during a particular month in the future at a specified price.
Successful use of the Fund's investment strategies with respect to futures and
options depends on the ability to predict movements of the overall securities,
currency and interest rate markets, which is a different skill than that
required to select equity and debt investments. There can be no assurance that a
chosen strategy will succeed. There may not be an expected correlation between
price movements of a hedging instrument and price movements of the investment
being hedged, so that the Fund may lose money notwithstanding employment of the
hedging strategy. While the Fund's investment strategies can reduce risk of loss
by offsetting the negative effect of unfavorable price movements, they can also
reduce the opportunity for gain by offsetting the positive effect of a favorable
price movement. If the variance is great enough, a decline in the price of an
instrument may result in a loss to the Fund. The Fund may be required to cover
its assets in a segregated account. If an investment cannot be liquidated at the
time the Subadvisor believes it is best for the Fund, the Fund might be required
to keep assets on reserve that it otherwise would not have had to maintain.
Similarly, it might have to sell a security at an inopportune time in order to
maintain the reserves.
futures and options
The Fund is authorized to invest in certain types of futures, options on
equities and equity indexes, warrants and stock rights for hedging purposes
only, that is, protecting against the risk of market movements that may
adversely affect the value of the Fund's securities or the price of securities
that the Fund is considering purchasing. Although a hedging transaction may
partially protect the Fund from a decline in the value of a particular security
or its portfolio generally, the cost of the transaction will reduce the
potential return on the security or the portfolio. The Fund may only write call
options on securities that it owns (i.e., that are "covered"). No more than 50%
of the Fund's total assets shall be subject to outstanding options contracts.
The Fund presently intends to cease writing options in the event that 25% of
total assets are subject to outstanding options contracts. As an operating
policy, the Fund may purchase a call or put option on securities (including
combinations of options such as straddles or spreads) only if the value of that
option premium, when aggregated with the premiums of all other options on
securities held by the Fund, does not exceed 5% of the Fund's assets. Following
is a summary of the futures, options, warrants and stock rights in which the
Fund may invest:
In exchange for a premium, a call option on a security or
security index gives the holder (buyer) of the option the right (but not the
obligation) to purchase the underlying security or security index at a specified
price (the exercise price) at any time until a certain date (the expiration
date). The writer (seller) of a call option has the corresponding obligation to
deliver the underlying security in the event the option is exercised by the
holder of the option. A call option on a securities index is similar to a call
option on an individual security, except that the value of the option depends on
the weighted value of the group of securities comprising the index and all
settlements are to be made in cash. A call option may be terminated by the
writer (seller) by entering into a closing purchase transaction in which the
writer purchases an option of the same series as the option previously written.
The Fund may purchase put options on a security or security index. A put option
gives the holder (buyer) of the option the right (but not the obligation) to
sell a security at the exercise price at any time until the expiration date.
Upon exercise by the purchaser, the writer of a put option has the obligation to
purchase the underlying security at the exercise price. A put option on a
securities index is similar to a put option on an individual security, except
that the value of the option depends on the weighted value of the group of
securities comprising the index and all settlements are made in cash. Purchasing
a call or put option involves the risk that the Fund may lose the premium it
paid plus transactions costs.
With respect to securities and securities indexes,
the Fund may write (sell) call and put options on an exchange or
over-the-counter. Call options on portfolio securities will be covered since the
Fund will own the underlying securities. Call options on securities indices will
be written only to hedge in an economically appropriate way portfolio securities
which are not otherwise hedged with options or financial futures contracts and
will be covered by maintaining sufficient collateral to cover the option.
The Fund may write (sell) call and put options in order to obtain a return
on its investments from the premiums received and will retain the premiums
whether or not the options are exercised. Any decline in the market value of
portfolio securities will be offset to the extent of the premiums received (net
of transaction costs). If an option is exercised, the premium received on the
option will effectively increase the exercise price or reduce the difference
between the exercise price and market value. During the option period, the
writer of a call option gives up the opportunity for appreciation in the market
value of the underlying security or currency above the exercise price. The
writer retains the risk of loss should the price of the underlying security
decline.
The Fund may also write a call or put option which it has previously
purchased prior to the purchase (in the case of a call) or the sale (in the case
of a put) of the underlying security. Any such sale would result in a net gain
or loss depending on whether the amount received on the sale is more or less
than the premium and other transaction costs paid on the call or put which is
sold. The Fund may close out its position in a futures contract or an option on
a futures contract only by entering into an offsetting transaction on the
exchange on which the position was established and only if there is a liquid
secondary market for the futures contract. If it is not possible to close a
futures position entered into by the Fund, it could be required to make
continuing daily cash payments to meet margin requirements in the event of
adverse price movements. In such situations, if the Fund has insufficient cash,
it may have to sell portfolio securities to meet daily variation margin
requirements at a time when it would be disadvantageous to do so. The inability
to close futures or options positions could have an adverse effect on the Fund.
There is also risk of loss by the Fund of margin deposits in the event of
bankruptcy of a broker with whom the Fund has an open position in a futures
contract. The correlation is imperfect between movements in the prices of
futures or option contracts, and the movements of prices of the securities which
are subject to the hedge. If the Fund used a futures or options contract to
hedge against a decline in the market, and the market later advances (or
vice-versa), the Fund may suffer a greater loss than if it had not hedged.
Engaging in transactions in financial futures contracts involves certain risks,
such as the possibility of an imperfect correlation between futures market
prices and cash market prices and the possibility that the Advisor or Subadvisor
could be incorrect in its expectations as to the direction or extent of various
interest rate movements, in which case the Fund's return might have been greater
had hedging not taken place. There is also the risk that a liquid secondary
market may not exist. The risk in purchasing an option on a financial futures
contract is that the fund will lose the premium it paid. Also, there may be
circumstances when the purchase of an option on a financial futures contract
would result in a loss to the Fund while the purchase or sale of the contract
would not have resulted in a loss.
The Fund will not purchase or sell any financial futures contract or
related option if, immediately thereafter, the sum of the cash or U.S. Treasury
bills committed with respect to its existing futures and related options
positions and the premiums paid for related options would exceed 5% of the
market value of its total assets. At the time of purchase of a futures contract
or a call option on a futures contract, an amount of cash, U.S. Government
securities or other appropriate liquid debt or equity securities equal to the
market value of the futures contract, minus the Fund's initial margin deposit
with respect thereto, will be deposited in a segregated account with the Fund's
custodian bank to collateralize fully the position and thereby ensure that it is
not leveraged. The extent to which the Fund may enter into financial futures
contracts and related options may also be limited by the requirements of the
Internal Revenue Code of 1986 for qualification as a regulated investment
company. Warrants and stock rights are almost identical to call options in their
nature, use and effect except that they are issued by the issuer of the
underlying security rather than an option writer, and they generally have longer
expiration dates than call options. The Fund may invest up to 5% of its net
assets in warrants and stock rights, but no more than 2% of its net assets may
be invested in warrants and stock rights not listed on the New York Stock
Exchange or the American Stock Exchange.
NONINVESTMENT GRADE (HIGH YIELD/HIGH RISK) DEBT SECURITIES
The Fund may invest up to 5% of its assets in lower quality debt securities
(generally those rated BB or lower by S&P or Ba or lower by Moody's), or in
unrated securities determined by the Advisor to be comparable. These securities
have moderate to poor protection of principal and interest payments and have
speculative characteristics. These securities involve greater risk of default or
price declines due to changes in the issuer's creditworthiness than
investment-grade debt securities. Because the market for lower-rated securities
may be thinner and less active than for higher-rated securities, there may be
market price volatility for these securities and limited liquidity in the resale
market. Market prices for these securities may decline significantly in periods
of general economic difficulty or rising interest rates. Unrated debt securities
may fall into the lower quality category. Unrated securities usually are not
attractive to as many buyers as are rated securities, which may make them less
marketable. The Fund will not purchase any securities rated lower than C (for an
explanation of Corporate Bond and Commercial Paper ratings, see Appendix). The
quality limitation set forth in the investment policy is determined immediately
upon the Fund's acquisition of a security. Accordingly, any later change in
ratings may not be considered when determining whether an investment complies
with the Fund's investment policy. When purchasing high-yielding securities,
rated or unrated, the Subadvisor prepares its own careful credit analysis to
attempt to identify those issuers whose financial condition is adequate to meet
future obligations or is expected to be adequate in the future. Through
portfolio diversification and credit analysis, investment risk can be reduced,
although there can be no assurance that losses will not occur.
LENDING PORTFOLIO SECURITIES
Although it does not currently intend to do so, the Fund may lend its
portfolio securities to member firms of the New York Stock Exchange and
commercial banks with assets of one billion dollars or more. Loans must be
secured continuously in the form of cash or cash equivalents such as U.S.
Treasury bills; the amount of the collateral must on a current basis equal or
exceed the market value of the loaned securities, and the Fund must be able to
terminate such loans upon notice at any time. The Fund will exercise its right
to terminate a securities loan in order to preserve its right to vote upon
matters of importance affecting holders of the securities. The advantage of such
loans is that the Fund continues to receive the equivalent of the interest
earned or dividends paid by the issuers on the loaned securities while at the
same time earning interest on the cash or equivalent collateral which may be
invested in accordance with the Fund's investment objective, policies and
restrictions. Securities loans are usually made to broker-dealers and other
financial institutions to facilitate their delivery of such securities. As with
any extension of credit, there may be risks of delay in recovery and possibly
loss of rights in the loaned securities should the borrower of the loaned
securities fail financially. However, the Fund will make loans of its portfolio
securities only to those firms the Advisor or Subadvisor deems creditworthy and
only on terms the Advisor believes should compensate for such risk. On
termination of the loan, the borrower is obligated to return the securities to
the Fund. The Fund will recognize any gain or loss in the market value of the
securities during the loan period. The Fund may pay reasonable custodial fees in
connection with the loan.
INVESTMENT RESTRICTIONS
Fundamental Investment Restrictions
The Fund has adopted the following investment restrictions which cannot be
changed without the approval of the holders of a majority of the outstanding
shares of the Fund. As defined in the Investment Company Act of 1940, this means
the lesser of the vote of (a) 67% of the shares of the Fund at a meeting where
more than 50% of the outstanding shares are present in person or by proxy or (b)
more than 50% of the outstanding shares of the Fund. The Fund may not:
1. With respect to 50% of its assets, purchase securities of any issuer
(other than obligations of, or guaranteed by, the United States Government, its
agencies or instrumentalities) if, as a result, more than 5% of the value of its
total assets would be invested in securities of that issuer. (The remaining 50%
of its total assets may be invested without restriction except to the extent
other investment restrictions may be applicable). 2. Concentrate more than 25%
of the value of its assets in any one industry; provided, however, that there is
no limitation with respect to investments in obligations issued or guaranteed by
the United States Government or its agencies and instrumentalities, and
repurchase agreements secured thereby. 3. Make loans of more than one-third of
the assets of the Fund, other than through the purchase of money market
instruments and repurchase agreements or by the purchase of bonds, debentures or
other debt securities, or the lending of portfolio securities as detailed in the
prospectus, or as permitted by law. The purchase by the Fund of all or a portion
of an issue of publicly or privately distributed debt obligations in accordance
with its investment objective, policies and restrictions, shall not constitute
the making of a loan. 4. Underwrite the securities of other issuers, except as
permitted by the Board of Trustees within applicable law, and except to the
extent that in connection with the disposition of its portfolio securities, the
Fund may be deemed to be an underwriter. 5. Borrow money in an amount exceeding
one-third of the Fund's total assets, or as permitted by law. In order to secure
any permitted borrowings under this section, the Fund may pledge, mortgage or
hypothecate its assets. 6. Except as required in connection with permissible
options, futures and commodity activities of the Fund, invest in commodities,
commodity futures contracts, or real estate, although it may invest in
securities which are secured by real estate or real estate mortgages and
securities of issuers which invest or deal in commodities, commodity futures,
real estate or real estate mortgages and provided that it may purchase or enter
into futures contracts and options on futures contracts, foreign currency
futures, interest rate futures and options thereon.
NONFUNDAMENTAL INVESTMENT RESTRICTIONS
The Fund has adopted the following operating (i.e., non-fundamental)
investment policies and restrictions which may be changed by the Board of
Trustees without shareholder approval. The Fund may not: 7. Purchase the
securities of any issuer with less than three years' continuous operation if, as
a result, more than 5% of the value of its total assets would be invested in
securities of such issuers. 8. Invest, in the aggregate, more than 15% of its
net assets in illiquid securities. Purchases of securities outside the U.S. that
are not registered with the SEC or marketable in the U.S. are not per se
illiquid. 9. Invest, in the aggregate, more than 5% of its net assets in the
securities of issuers restricted from selling to the public without registration
under the Securities Act of 1933, excluding restricted securities eligible for
resale pursuant to Rule 144A under that statute. 10. Purchase or retain
securities of any issuer if the officers, Trustees of the Fund, or its Advisors,
owning beneficially more than 1/2 of 1% of the securities of such issuer,
together own beneficially more than 5% of such issuer's securities. 11. Invest
in warrants if more than 5% of the value of the Fund's net assets would be
invested in such securities. 12. Invest in interests in oil, gas, or other
mineral exploration or development programs or leases, although it may invest in
securities of issuers which invest in or sponsor such programs. 13. Purchase
from or sell to any of the Fund's officers or trustees, or companies of which
any of them are directors, officers or employees, any securities (other than
shares of beneficial interest of the Fund), but such persons or firms may act as
brokers for the Fund for customary commissions. 14. Invest in the shares of
other investment companies, except as permitted by the 1940 Act or other
applicable law, or pursuant to Calvert's nonqualified deferred compensation plan
adopted by the Board of Trustees, in an amount not to exceed 10% or as permitted
by law.
For purposes of the Fund's concentration policy contained in restriction
(2), above, the Fund classifies the respective industries according to a revised
version of William O'Neil's Investor's Business Daily industry classification.
Any investment restriction which involves a maximum percentage of securities or
assets shall not be considered to be violated unless an excess over the
applicable percentage occurs immediately after an acquisition of securities or
utilization of assets and results therefrom.
DIVIDENDS, DISTRIBUTIONS, AND TAXES
The Fund declares and pays dividends from net investment income on an
annual basis. Distributions of realized net capital gains, if any, are normally
paid once a year; however, the Fund does not intend to make any such
distributions unless available capital loss carryovers, if any, have been used
or have expired. Dividends and distributions paid may differ among the classes.
Investors should note that the Internal Revenue Code (the "Code") may require
investors to exclude the initial sales charge, if any, paid on the purchase of
Fund shares from the tax basis of those shares if the shares are exchanged for
shares of another Calvert Group Fund within 90 days of purchase. This
requirement applies only to the extent that the payment of the original sales
charge on the shares of the Fund causes a reduction in the sales charge
otherwise payable on the shares of the Calvert Group Fund acquired in the
exchange, and investors may treat sales charges excluded from the basis of the
original shares as incurred to acquire the new shares. The Fund is required to
withhold 31% of any dividends and 31% of each redemption transaction occurring
in the Fund if; (a) the shareholder's social security number or other taxpayer
identification number ("TIN") is not provided, or an obviously incorrect TIN is
provided; (b) the shareholder does not certify under penalties of perjury that
the TIN provided is the shareholder's correct TIN and that the shareholder is
not subject to backup withholding under section 3406(a)(1)(C) of the Code
because of underreporting (however, failure to provide certification as to the
application of section 3406(a)(1)(C) will result only in backup withholding on
dividends, not on redemptions); or (c) the Fund is notified by the Internal
Revenue Service that the TIN provided by the shareholder is incorrect or that
there has been underreporting of interest or dividends by the shareholder.
Affected shareholders will receive statements at least annually specifying the
amount withheld. The Fund is required to report to the Internal Revenue Service
the following information with respect to each redemption transaction: (a) the
shareholder's name, address, account number and taxpayer identification number;
(b) the total dollar value of the redemptions; and (c) the Fund's identifying
CUSIP number. Certain shareholders are exempt from the backup withholding and
broker reporting requirements. Exempt shareholders include: corporations;
financial institutions; tax-exempt organizations; individual retirement plans;
the U.S., a State, the District of Columbia, a U.S. possession, a foreign
government, an international organization, or any political subdivision, agency
or instrumentality of any of the foregoing; U.S. registered commodities or
securities dealers; real estate investment trusts; registered investment
companies; bank common trust funds; certain charitable trusts; foreign central
banks of issue. Non-resident aliens, certain foreign partnerships and foreign
corporations are generally not subject to either requirement but may instead be
subject to withholding under sections 1441 or 1442 of the Code. Shareholders
claiming exemption from backup withholding and broker reporting should call or
write the Fund for further information.
NET ASSET VALUE
The public offering price of the shares of the Fund is the respective net
asset value per share (plus, for Class A shares, the applicable sales charge).
The net asset value fluctuates based on the respective market value of the
Fund's investments. The net asset value per share for each class is determined
every business day at the close of the regular session of the New York Stock
Exchange (normally 4:00 p.m. Eastern time) and at such other times as may be
necessary or appropriate. The Fund does not determine net asset value on certain
national holidays or other days on which the New York Stock Exchange is closed:
New Year's Day, Presidents' Day, Good Friday, Memorial Day, Independence Day,
Labor Day, Thanksgiving Day, and Christmas Day. The Fund's net asset value per
share is determined by dividing total net assets (the value of its assets net of
liabilities, including accrued expenses and fees) by the number of shares
outstanding for that class. The assets of the Fund are valued as follows: (a)
securities for which market quotations are readily available are valued at the
most recent closing price, mean between bid and asked price, or yield equivalent
as obtained from one or more market makers for such securities; (b) securities
maturing within 60 days may be valued at cost, plus or minus any amortized
discount or premium, unless the Board of Trustees determines such method not to
be appropriate under the circumstances; and (c) all other securities and assets
for which market quotations are not readily available will be fairly valued by
the Advisor in good faith under the supervision of the Board of Trustees. Equity
options are valued at the last sale price; if not available, then the previous
day's sales price is used. If the bid price is higher or the asked price is
lower than the previous last sales price, the higher bid or lower asked prices
may be used. Exchange traded fixed income options are valued at the last sale
price unless there is no sale price, in which event current prices provided by
market makers are used. Over-the-counter fixed income options are valued based
upon current prices provided by market makers. Financial futures are valued at
the settlement price established each day by the board of trade or exchange on
which they are traded.
CALCULATION OF TOTAL RETURN
The Fund may advertise "total return." Total return is calculated
separately for each class. Total return is computed per class by taking the
total number of shares purchased by a hypothetical $1,000 investment after
deducting any applicable sales charge, adding all additional shares purchased
within the period with reinvested dividends and distributions, calculating the
value of those shares at the end of the period, and dividing the result by the
initial $1,000 investment. For periods of more than one year, the cumulative
total return is then adjusted for the number of years, taking compounding into
account, to calculate average annual total return during that period. Total
return is computed according to the following formula: P(1 + T)n = ERV where P =
a hypothetical initial payment of $1,000; T = total return; n = number of years;
and ERV = the ending redeemable value of a hypothetical $1,000 payment made at
the beginning of the period. Total return is historical in nature and is not
intended to indicate future performance. All total return quotations reflect the
deduction of the maximum class A front-end sales charge ("return with maximum
load"), except quotations of "return without maximum load," which do not deduct
sales charge. Thus, in the formula above, for return without maximum load, P =
the entire $1,000 hypothetical initial investment and does not reflect the
deduction of any sales charge; for return with maximum load, P = a hypothetical
initial investment of $1,000 less any sales charge actually imposed at the
beginning of the period for which the performance is being calculated.
PURCHASE AND REDEMPTION OF SHARES
Investments in the Fund made by mail, bank wire or electronic funds
transfer, or through the Fund's branch office or brokers participating in the
distribution of Fund shares, are credited to a shareholder's account at the
public offering price which is the net asset value next determined after receipt
by the Fund, plus the sales charge, if applicable, as set forth in the Fund's
Prospectus. All purchases of Fund shares will be confirmed and credited to
shareholder accounts in full and fractional shares (rounded to the nearest
1/1000th of a share). Share certificates will not be issued unless requested in
writing by the investor. No charge will be made for share certificate requests.
No certificates will be issued for fractional shares. A service fee of $10.00,
plus any costs incurred by the Fund, will be charged investors whose purchase
checks are returned for insufficient funds. To change redemption instructions
already given, shareholders must send a notice to Calvert Group, with a voided
copy of a check for the bank wiring instructions to be added, to c/o NFDS, P.O.
Box 419544, Kansas City, MO 64141-6544. If a voided check does not accompany the
request, then the request must be signature guaranteed by a commercial bank,
trust company, savings association or member firm of any national securities
exchange. Other documentation may be required from corporations, fiduciaries and
institutional investors. The right of redemption may be suspended or the date of
payment postponed for any period during which the New York Stock Exchange is
closed (other than customary weekend and holiday closings), when trading on the
New York Stock Exchange is restricted, or an emergency exists, as determined by
the Commission, or if the Commission has ordered a suspension of trading for the
protection of shareholders. Redemption proceeds are normally paid in cash.
However, the Fund has the right to redeem shares in assets other than cash for
redemption amounts exceeding, in any 90-day period, $250,000 or 1% of the net
asset value of the Fund, whichever is less.
REDUCED SALES CHARGES (CLASS A)
The Fund imposes reduced sales charges for Class A shares in certain
situations in which the Principal Underwriter and the dealers selling Fund
shares may expect to realize significant economies of scale with respect to such
sales. Generally, sales costs do not increase in proportion to the dollar amount
of the shares sold; the per-dollar transaction cost for a sale to an investor of
shares worth, say, $5,000 is generally much higher than the per-dollar cost for
a sale of shares worth $1,000,000. Thus, the applicable sales charge declines as
a percentage of the dollar amount of shares sold as the dollar amount increases.
When a shareholder agrees to make purchases of shares over a period of time
totaling a certain dollar amount pursuant to a Letter of Intent, the Underwriter
and selling dealers can expect to realize the economies of scale applicable to
that stated goal amount. Thus, the Fund imposes the sales charge applicable to
the goal amount. Similarly, the Underwriter and selling dealers also experience
cost savings when dealing with existing Fund shareholders, enabling the Fund to
afford existing shareholders the Right of Accumulation. The Underwriter and
selling dealers can also expect to realize economies of scale when making sales
to the members of certain qualified groups which agree to facilitate
distribution of Fund shares to their members. Please see "Exhibit A - Reduced
Sales Charges" in the Prospectus. For shareholders who intend to invest at least
$50,000, a Letter of Intent is included in the Appendix to this Statement of
Additional Information.
ADVERTISING
The Fund or its affiliates may provide information such as, but not limited
to, the economy, investment climate, investment principles, sociological
conditions and political ambiance. Discussion may include hypothetical scenarios
or lists of relevant factors designed to aid the investor in determining whether
the Fund is compatible with the investor's goals. The Fund may list portfolio
holdings or give examples of securities that may have been considered for
inclusion in the Portfolio, whether held or not. The Fund or its affiliates may
supply comparative performance data and rankings from independent sources such
as Donoghue's Money Fund Report, Bank Rate Monitor, Money, Forbes, Lipper
Analytical Services, Inc., CDA Investment Technologies, Inc., Wiesenberger
Investment Companies Service, Mutual Fund Values Morningstar Ratings, Mutual
Fund Forecaster, Barron's, Nelson's and The Wall Street Journal. The Fund may
also cite to any source, whether in print or on-line, such as Bloomberg, in
order to acknowledge origin of information, and may provide biographical
information on, or quote, portfolio managers or Fund officers. The Fund may
compare itself or its portfolio holdings to other investments, whether or not
issued or regulated by the securities industry, including, but not limited to,
certificates of deposit and Treasury notes. The Fund, its Advisor, and its
affiliates reserve the right to update performance rankings as new rankings
become available. Calvert Group is the nation's leading family of socially
responsible mutual funds, both in terms of socially responsible mutual fund
assets under management, and number of socially responsible mutual fund
portfolios offered (source: Social Investment Forum, December 31, 1994). Calvert
Group was also the first to offer a family of socially responsible mutual fund
portfolios.
TRUSTEES AND OFFICERS
RICHARD L. BAIRD, JR., Trustee. Mr. Baird is Director of Finance for the
Family Health Council, Inc. in Pittsburgh, Pennsylvania, a non-profit
corporation which provides family planning services, nutrition, maternal/child
health care, and various health screening services. Mr. Baird is a
trustee/director of each of the investment companies in the Calvert Group of
Funds, except for Acacia Capital Corporation, Calvert New World Fund, Inc. and
Calvert World Values Fund, Inc. DOB: 05/09/48. Address: 211 Overlook Drive,
Pittsburgh, Pennsylvania 15216. FRANK H. BLATZ, JR., Esq., Trustee. Mr. Blatz is
a partner in the law firm of Snevily, Ely, Williams, Gurrieri & Blatz. He was
formerly a partner with Abrams, Blatz, Gran, Hendricks & Reina, P.A. DOB:
10/29/35. Address: 308 East Broad Street, PO Box 2007, Westfield, New Jersey
07091. FREDERICK T. BORTS, M.D., Trustee. Dr. Borts is a radiologist with Kaiser
Permanente. Prior to that, he was a radiologist at Bethlehem Medical Imaging in
Allentown, Pennsylvania. DOB: 07/23/49. Address: 2040 Nuuanu Avenue #1805,
Honolulu, Hawaii, 96817. <F1> CHARLES E. DIEHL, Trustee. Mr. Diehl is Vice
President and Treasurer Emeritus of the George Washington University, and has
retired from University Support Services, Inc. of Herndon, Virginia. He is also
a Director of Acacia Mutual Life Insurance Company. DOB: 10/13/22. Address: 1658
Quail Hollow Court, McLean, Virginia 22101. DOUGLAS E. FELDMAN, M.D., Trustee.
Dr. Feldman practices head and neck reconstructive surgery in the Washington,
D.C. metropolitan area. DOB: 05/23/48. Address: 7536 Pepperell Drive, Bethesda,
Maryland 20817. PETER W. GAVIAN, CFA, Trustee. Mr. Gavian was a principal of
Gavian De Vaux Associates, an investment banking firm. He continues to be
President of Corporate Finance of Washington, Inc. DOB: 12/08/32. Address: 3005
Franklin Road North, Arlington, Virginia 22201. JOHN G. GUFFEY, JR., Trustee.
Mr. Guffey is chairman of the Calvert Social Investment Foundation, organizing
director of the Community Capital Bank in Brooklyn, New York, and a financial
consultant to various organizations. In addition, he is a Director of the
Community Bankers Mutual Fund of Denver, Colorado, and the Treasurer and
Director of Silby, Guffey, and Co., Inc., a venture capital firm. Mr. Guffey is
a trustee/director of each of the other investment companies in the Calvert
Group of Funds, except for Acacia Capital Corporation and Calvert New World
Fund, Inc. DOB: 05/15/48. Address: 7205 Pomander Lane, Chevy Chase, Maryland
20815. M. CHARITO KRUVANT, Trustee. Ms. Kruvant is President of Creative
Associates International, Inc., a firm that specializes in human resources
development, information management, public affairs and private enterprise
development. DOB: 12/08/45. Address: 5301 Wisconsin Avenue, N.W., Washington,
D.C. 20015. ARTHUR J. PUGH, Trustee. Mr. Pugh serves as a Director of Acacia
Federal Savings Bank. DOB: 09/24/37. Address: 4823 Prestwick Drive, Fairfax,
Virginia 22030.<F1>DAVID R.ROCHAT, Senior Vice President and Trustee. Mr. Rochat
is Executive Vice President of Calvert Asset Management Company, Inc., Director
and Secretary of Grady, Berwald and Co., Inc., and Director and President of
Chelsea Securities, Inc. DOB: 10/07/37. Address: Box 93, Chelsea, Vermont 05038.
<F1> D. WAYNE SILBY, Esq., Trustee. Mr.Silby is a trustee/directorof each of the
investment companies in the Calvert Group of Funds, except for Acacia Capital
Corporation and Calvert New World Fund, Inc. Mr. Silby is an officer, director
and shareholder of Silby, Guffey & Company, Inc., which serves as general
partner of Calvert Social Venture Partners ("CSVP"). CSVP is a venture capital
firm investing in socially responsible small companies. He is also a Director of
Acacia Mutual Life Insurance Company. DOB: 07/20/48. Address: 1715 18th Street,
N.W., Washington, D.C. 20009.<F1> CLIFTON S.SORRELL, JR.,President and Trustee.
Mr. Sorrell serves as President, Chief Executive Officer and Vice Chairman of
Calvert Group, Ltd. and as an officer and director of each of its affiliated
companies. He is a director of Calvert-Sloan Advisers, L.L.C., and a
trustee/director of each of the investment companies in the Calvert Group of
Funds. DOB: 06/26/41. <F1>RENO J.MARTINI, Senior Vice President. Mr.Martini is a
director and Senior Vice President of Calvert Group, Ltd., and Senior Vice
President and Chief Investment Officer of Calvert Asset Management Company, Inc.
Mr. Martini is also a director and President of Calvert-Sloan Advisers, L.L.C.,
and a director and officer of Calvert New World Fund, Inc. DOB: 01/13/50. <F1>
RONALD M. WOLFSHEIMER, CPA, Treasurer. Mr. Wolfsheimer is Senior Vice President
and Controller of Calvert Group, Ltd. and its subsidiaries and an officer of
each of the other investment companies in the Calvert Group of Funds. Mr.
Wolfsheimer is Vice President and Treasurer of Calvert-Sloan Advisers, L.L.C.,
and a director of Calvert Distributors, Inc. DOB: 07/24/52. <F1>WILLIAM M.
TARTIKOFF, Esq., Vice President and Secretary. Mr. Tartikoff is an officer of
each of the investment companies in the Calvert Group of Funds, and is Senior
Vice President, Secretary, and General Counsel of Calvert Group, Ltd., and each
of its subsidiaries. Mr. Tartikoff is also Vice President and Secretary of
Calvert-Sloan Advisers, L.L.C., a director of Calvert Distributors, Inc., and is
an officer of Acacia National Life Insurance Company. DOB: 08/12/47.<F1> EVELYNE
S. STEWARD, Vice President. Ms. Steward is a director and Senior Vice President
of Calvert Group, Ltd., and a director of Calvert-Sloan Advisers, L.L.C. She is
the sister of Philip J. Schewetti, the portfolio manager of the CSIF Equity
Portfolio. DOB: 11/14/52.<F1>DANIEL K. HAYES, Vice President. Mr. Hayes is Vice
President of Calvert Asset Management Company, Inc., and is an officer of each
of the other investment companies in the Calvert Group of Funds, except for
Calvert New World Fund, Inc. DOB: 09/09/50. <F1> SUSAN WALKER BENDER, Esq.,
Assistant Secretary. Ms. Bender is Associate General Counsel of Calvert Group
and an officer of each of its subsidiaries and Calvert-Sloan Advisers, L.L.C.
She is also an officer of each of the other investment companies in the Calvert
Group of Funds. DOB: 01/29/59.<F1> KATHERINE STONER, Esq., Assistant Secretary.
Ms. Stoner is Assistant Counsel of Calvert Group and an officer of each of its
subsidiaries and Calvert-Sloan Advisers, L.L.C. She is also an officer of each
of the other investment companies in the Calvert Group of Funds. DOB: 10/21/56.
<F1>LISA CROSSLEY, Esq., Assistant Secretary and Compliance Officer. Ms.Crossley
is Assistant Counsel of Calvert Group and an officer of each of its subsidiaries
and Calvert-Sloan Advisers, L.L.C. She is also an officer of each of the other
investment companies in the Calvert Group of Funds. DOB:12/31/61.<F1>IVY WAFFORD
DUKE, Esq., Assistant Secretary. Ms. Duke is Assistant Counsel of Calvert Group
and an officer of each of its subsidiaries and Calvert-Sloan Advisers, L.L.C.
She is also an officer of each of the other investment companies in the Calvert
Group of Funds. DOB: 09/07/68.
<F1> Officers and trustees deemed to be "interested persons" of the Fund under
the Investment Company Act of 1940, by virtue of their affiliation with the
Fund's Advisor.
Each of the above directors/trustees and officers is a director/trustee or
officer of each of the investment companies in the Calvert Group of Funds with
the exception of Calvert Social Investment Fund, of which only Messrs. Baird,
Guffey, Silby and Sorrell are among the trustees, Acacia Capital Corporation, of
which only Messrs. Blatz, Diehl, Pugh and Sorrell are among the directors,
Calvert World Values Fund, Inc., of which only Messrs. Guffey, Silby and Sorrell
are among the directors, and Calvert New World Fund, Inc., of which only Messrs.
Sorrell and Martini are among the directors. The address of directors and
officers, unless otherwise noted, is 4550 Montgomery Avenue, Suite 1000N,
Bethesda, Maryland 20814. The Audit Committee of the Board is composed of
Messrs. Baird, Blatz, Feldman, Guffey and Pugh, and Ms. Kruvant. The Board's
Investment Policy Committee is composed of Messrs. Borts, Diehl, Gavian, Rochat,
Silby and Sorrell. Messrs. Baird, Guffey and Silby serve on the High Social
Impact Investments Committee which assists the Fund in identifying, evaluating
and selecting investments in securities that offer a rate of return below the
then-prevailing market rate and that present attractive opportunities for
furthering the Fund's social criteria. Trustees of the Fund not affiliated with
the Fund's Advisor may elect to defer receipt of all or a percentage of their
fees and invest them in any fund in the Calvert Family of Funds through the
Trustees Deferred Compensation Plan. Deferral of the fees is designed to
maintain the parties in the same position as if the fees were paid on a current
basis. Management believes this will have a negligible effect on the Fund's
assets, liabilities, net assets, and net income per share.
Trustee Compensation Table
Fiscal Year 199_ Aggregate Compensation Pension or Retirement
(unaudited numbers) from Fund for service Benefits Accrued as part
as Trustee of Fund Expenses
Total Compensation from
Registrant and Fund Complex
paid to Trustees <F1>
<F1> As of September 30, 1996, the Fund Complex consists of nine (9)
registered investment companies.
Name of Director
...........................................................................
Richard L. Baird, Jr.
Frank H. Blatz, Jr.
Frederick T. Borts
Charles E. Diehl
Douglas E. Feldman
Peter W. Gavian
John G. Guffey, Jr.
M. Charito Kruvant
Arthur J. Pugh
D. Wayne Silby
INVESTMENT ADVISOR AND SUBADVISOR
The Fund's Investment Advisor is Calvert Asset Management Company, Inc.,
4550 Montgomery Avenue, 1000N, Bethesda, Maryland 20814, a subsidiary of Calvert
Group Ltd., which is a subsidiary of Acacia Mutual Life Insurance Company of
Washington, D.C. ("Acacia Mutual"). The Advisory Contract between the Fund and
the Advisor was entered into as of _________, 1996, and will remain in effect
indefinitely, provided continuance is approved at least annually by the vote of
the holders of a majority of the outstanding shares of the Fund or by the Board
of Trustees of the Fund; and further provided that such continuance is also
approved annually by the vote of a majority of the trustees of the Fund who are
not parties to the Contract or interested persons of parties to the Contract or
interested persons of such parties, cast in person at a meeting called for the
purpose of voting on such approval. The Contract may be terminated without
penalty by either party upon 60 days' prior written notice; it automatically
terminates in the event of its assignment. The Fund's Subadvisor is Portfolio
Advisory Services, Inc. ("Subadvisor" or "PASI"). Pursuant to an Investment
Subadvisory Agreement with the Advisor, the Subadvisor determines investment
selections for the Fund. The Advisor provides the Fund with investment
supervision and management, administrative services, office space, furnishes
executive and other personnel to the Fund, and may pay Fund advertising and
promotional expenses. The Advisor reserves the right to compensate
broker-dealers in consideration of their promotional or administrative services.
The Fund pays all other administrative and operating expenses, including:
custodial, registration, dividend disbursing and transfer agency fees; federal
and state securities registration fees; salaries, fees and expenses of Trustees,
executive officers and employees of the Fund, who are not ''affiliated persons"
of the Advisor or the Subadvisor within the meaning of the Investment Company
Act of 1940; insurance premiums; trade association dues; legal and audit fees;
interest, taxes and other business fees; expenses of printing and mailing
reports, notices, prospectuses, and proxy material to shareholders; annual
shareholders' meeting expenses; and brokerage commissions and other costs
associated with the purchase and sale of portfolio securities. The Advisor has
agreed to reimburse the Fund for all expenses (excluding brokerage, taxes,
interest, and all or a portion of distribution and certain other expenses, to
the extent allowed by state or federal law or regulation) exceeding the most
restrictive expense limitation in those states where the Fund's shares are
qualified for sale. Under the contract, the Advisor provides investment advice
to the Fund and oversees its day-to-day operations, subject to direction and
control by the Fund's Board of Trustees. The Advisor may voluntarily defer its
fees or assume expenses of the Fund. The Advisor may recapture from (charge to)
the Fund for such expenses incurred through December 31, 1998, provided that
such recapture would not cause the Fund's aggregate expenses to exceed an annual
expense limit of 2.00%, and that such recapture shall be made to the Advisor
only from the two-year period from January 1, 1997 through December 31, 1998.
The Advisor may voluntarily agree to further defer its fees or assume Fund
expenses from January 1, 1997 through December 31, 1998 ("Additional
Deferral/Assumption Period"). If so, the Advisor may recapture from (charge to)
the Fund for any such expenses incurred during the Additional
Deferral/Assumption Period, provided that such recapture would not cause the
Fund's aggregate expenses to exceed an annual expense limit of 2.00%, and that
such recapture shall be made to the Advisor only from the two-year period from
January 1, 1999 through December 31, 2000. Each year's current advisory fees
(incurred in that year) will be paid in full before any recapture for a prior
year is applied. Recapture then will be applied beginning with the most recent
year first. Calvert Administrative Services Company ("CASC"), an affiliate of
the Advisor, has been retained by the Fund to provide certain administrative
services necessary to the conduct of its affairs, including the preparation of
regulatory filings and shareholder reports, the daily determination of its net
asset value per share and dividends, and the maintenance of its portfolio and
general accounting records. For providing such services, CASC receives an annual
fee from the Fund of 0.25% of the Fund's average daily net assets.
METHOD OF DISTRIBUTION
The Fund has entered into an agreement with Calvert Distributors, Inc.
("CDI") whereby CDI, acting as Principal Underwriter for the Fund, makes a
continuous offering of the Fund's securities on a "best efforts" basis. Under
the terms of the agreement, CDI is entitled to receive reimbursement of
distribution expenses pursuant to the Distribution Plan (see below). For Class A
Shares, CDI also receives the portion of the sales charge in excess of the
dealer reallowance. Pursuant to Rule 12b-1 under the Investment Company Act of
1940, the Fund has adopted Distribution Plans (the "Distribution Plans") which
permits the Fund to pay certain expenses associated with the distribution of its
shares. Such expenses may not exceed, on an annual basis, 0.35% of the Fund's
Class A average daily net assets, and 1.00% of the Fund's Class C average daily
net assets. The Fund's Distribution Plans were approved by the Board of
Trustees, including the Trustees who are not "interested persons" of the Fund
(as that term is defined in the Investment Company Act of 1940) and who have no
direct or indirect financial interest in the operation of the Distribution Plans
or in any agreements related to the Distribution Plans. The selection and
nomination of the Trustees who are not interested persons of the Fund is
committed to the discretion of such disinterested Trustees. In establishing the
Distribution Plans, the Trustees considered various factors including the amount
of the distribution expenses. The Trustees determined that there is a reasonable
likelihood that the Distribution Plans will benefit the Fund and its
shareholders. The Distribution Plans may be terminated by vote of a majority of
the non-interested Trustees who have no direct or indirect financial interest in
the Distribution Plans, or by vote of a majority of the outstanding shares of
the Fund. Any change in the Distribution Plans that would materially increase
the distribution cost to the Fund requires approval of the shareholders of the
affected class; otherwise, the Distribution Plans may be amended by the
Trustees, including a majority of the non-interested Trustees as described
above. The Distribution Plans will continue in effect for successive one-year
terms provided that such continuance is specifically approved by (i) the vote of
a majority of the Trustees who are not parties to the Distribution Plans or
interested persons of any such party and who have no direct or indirect
financial interest in the Distribution Plans, and (ii) the vote of a majority of
the entire Board of Trustees. Apart from the Distribution Plans, the Advisor and
CDI, at their own expense, may incur costs and pay expenses associated with the
distribution of shares of the Fund.
TRANSFER AND SHAREHOLDER SERVICING AGENT
Calvert Shareholder Services, Inc., a subsidiary of Calvert Group, Ltd.,
and Acacia Mutual, has been retained by the Fund to act as transfer agent,
dividend disbursing agent and shareholder servicing agent. These
responsibilities include: responding to shareholder inquiries and instructions
concerning their accounts; crediting and debiting shareholder accounts for
purchases and redemptions of Fund shares and confirming such transactions; daily
updating of shareholder accounts to reflect declaration and payment of
dividends; and preparing and distributing semi-annual statements to shareholders
regarding their accounts. For these services, Calvert Shareholder Services,
Inc., receives a fee based on the number of shareholder accounts and the number
of shareholder transactions.
FUND TRANSACTIONS
Fund transactions are undertaken on the basis of their desirability from an
investment standpoint. Investment decisions and the choice of brokers and
dealers are made by the Fund's Advisor and Subadvisor under the direction and
supervision of the Fund's Board of Trustees. Broker-dealers who execute
portfolio transactions on behalf of the Fund are selected on the basis of their
professional capability and the value and quality of their services. The Fund
may pay brokerage commissions to broker-dealers who provide the Fund with
statistical, research, or other information and services. Notwithstanding the
quality of execution and other services provided, the Fund may pay commissions
that are higher than those available elsewhere. Any such payments are subject to
the criteria of Section 28(e) of the Securities Exchange Act of 1934. Although
any statistical research or other information and services provided by such
broker-dealers may be useful to the Advisor and the Subadvisor, the dollar value
of such information and services is generally indeterminable, and its
availability or receipt does not serve materially to reduce the Advisor's or
Subadvisor's normal research activities or expenses. The Advisor and Subadvisor
may also execute portfolio transactions with or through broker-dealers who have
sold shares of the Fund. However, such sales will not be a qualifying or
disqualifying factor in a broker-dealer's selection nor will the selection of
any broker-dealer be based on the volume of Fund shares sold. Depending upon
market conditions, portfolio turnover, generally defined as the lesser of annual
sales or purchases of portfolio securities divided by the average monthly value
of the Fund's portfolio securities (excluding from both the numerator and the
denominator all securities whose maturities or expiration dates as of the date
of acquisition are one year or less), expressed as a percentage, is under normal
circumstances expected not to exceed 100%.
INDEPENDENT ACCOUNTANT AND CUSTODIANS
[_______________] has been selected by the Board of Trustees to serve as
independent accountant for fiscal year 1997. State Street Bank & Trust Company,
N.A., 225 Franklin Street, Boston, MA 02110, serves as custodian of the Fund's
investments. First National Bank of Maryland, 25 South Charles Street,
Baltimore, Maryland 21203 also serves as custodian of certain of the Fund's cash
assets. The custodian has no part in deciding the Fund's investment policies or
the choice of securities that are to be purchased or sold for the Fund's
portfolios.
GENERAL INFORMATION
The Calvert Fund was organized as a Massachusetts business trust on March
15, 1982. The series of the Fund include Calvert Income Fund, Calvert Strategic
Growth Fund and Calvert Small Cap Fund. Each share represents an equal
proportionate interest with each other share and is entitled to such dividends
and distributions out of the income belonging to such class as declared by the
Board. The Fund offers two separate classes of shares: Class A and Class C. Each
class represents interests in the same portfolio of investments but, as further
described in the prospectus, each class is subject to differing sales charges
and expenses, which differences will result in differing net asset values and
distributions. Upon any liquidation of the Fund, shareholders of each class are
entitled to share pro rata in the net assets belonging to that series available
for distribution. The Fund will send its shareholders confirmations of purchase
and redemption transactions, as well as periodic transaction statements and
unaudited semi-annual and audited annual financial statements of the Fund's
investment securities, assets and liabilities, income and expenses, and changes
in net assets. The Prospectus and this Statement of Additional Information do
not contain all the information in the Fund's registration statement. The
registration statement is on file with the Securities and Exchange Commission
and is available to the public.
FINANCIAL STATEMENTS
The audited financial statements in the Fund's Annual Report to
Shareholders will be expressly incorporated by reference and made a part of this
Statement of Additional Information once available. Once available, a copy of
the Annual Report may be obtained free of charge by writing or calling the Fund.
APPENDIX
CORPORATE BOND AND COMMERCIAL PAPER RATINGS
Corporate Bonds:
Description of Moody's Investors Service Inc.'s/Standard & Poor's bond ratings:
Aaa/AAA: Best quality. These bonds carry the smallest degree of investment
risk and are generally referred to as "gilt edge." Interest payments are
protected by a large or by an exceptionally stable margin and principal is
secure. This rating indicates an extremely strong capacity to pay principal and
interest. Aa/AA: Bonds rated AA also qualify as high-quality debt obligations.
Capacity to pay principal and interest is very strong, and in the majority of
instances they differ from AAA issues only in small degree. They are rated lower
than the best bonds because margins of protection may not be as large as in Aaa
securities, fluctuation of protective elements may be of greater amplitude, or
there may be other elements present which make long-term risks appear somewhat
larger than in Aaa securities. A/A: Upper-medium grade obligations. Factors
giving security to principal and interest are considered adequate, but elements
may be present which make the bond somewhat more susceptible to the adverse
effects of circumstances and economic conditions. Baa/BBB: Medium grade
obligations; adequate capacity to pay principal and interest. Whereas they
normally exhibit adequate protection parameters, adverse economic conditions or
changing circumstances are more likely to lead to a weakened capacity to pay
principal and interest for bonds in this category than for bonds in higher rated
categories. Ba/BB, B/B, Caa/CCC, Ca/CC: Debt rated in these categories is
regarded as predominantly speculative with respect to capacity to pay interest
and repay principal. The higher the degree of speculation, the lower the rating.
While such debt will likely have some quality and protective characteristics,
these are outweighed by large uncertainties or major risk exposure to adverse
conditions. C/C: This rating is only for income bonds on which no interest is
being paid. D: Debt in default; payment of interest and/or principal is in
arrears.
Commercial Paper:
MOODY'S INVESTORS SERVICE, INC.:
The Prime rating is the highest commercial paper rating assigned by
Moody's. Among the factors considered by Moody's in assigning ratings are the
following: (1) evaluation of the management of the issuer; (2) economic
evaluation of the issuer's industry or industries and an appraisal of
speculative-type risks which may be inherent in certain areas; (3) evaluation of
the issuer's products in relation to competition and customer acceptance; (4)
liquidity; (5) amount and quality of long-term debt; (6) trend of earnings over
a period of ten years; (7) financial strength of a parent company and the
relationships which exist with the issuer; and (8) recognition by management of
obligations which may be present or may arise as a result of public interest
questions and preparations to meet such obligations. Issuers within this Prime
category may be given ratings 1, 2, or 3, depending on the relative strengths of
these factors.
STANDARD & POOR'S CORPORATION:
Commercial paper rated A by Standard & Poor's has the following
characteristics: (i) liquidity ratios are adequate to meet cash requirements;
(ii) long-term senior debt rating should be A or better, although in some cases
BBB credits may be allowed if other factors outweigh the BBB; (iii) the issuer
should have access to at least two additional channels of borrowing; (iv) basic
earnings and cash flow should have an upward trend with allowances made for
unusual circumstances; and (v) typically the issuer's industry should be well
established and the issuer should have a strong position within its industry and
the reliability and quality of management should be unquestioned. Issuers rated
A are further referred to by use of numbers 1, 2 and 3 to denote the relative
strength within this highest classification.
GLOSSARY OF PERMITTED INVESTMENTS
The following is a description of permitted investments for the Fund:
American Depositary Receipts ("ADRs"): ADRs are securities typically issued
by a U.S. financial institution that evidence ownership interest in a security
or a pool of securities issued by a foreign issuer and deposited with the
depository. ADRs may be available for investment through "sponsored" or
"unsponsored" facilities. A sponsored facility is established jointly by the
issuer of the security underlying the receipt and a depository, whereas an
unsponsored facility may be established by a depository without participation by
the issuer of the receipt's underlying security. Banker's Acceptance: A bill of
exchange or time draft drawn on and accepted by a commercial bank. It is used by
corporations to finance the shipment and storage of goods and to furnish dollar
exchange. Maturities are generally six months or less. Certificate of Deposit: A
negotiable interest bearing instrument with a specific maturity. Certificates of
deposit are issued by banks and savings and loan institutions in exchange for
the deposit of funds and normally can be traded in the secondary market prior to
maturity. Certificates of deposit generally carry penalties for early
withdrawal. Commercial Paper: The term used to designate unsecured short-term
promissory notes issued by corporations and other entities. Maturities on these
issues typically vary from a few days to nine months. Convertible Securities:
Securities such as rights, bonds, notes and preferred stocks which are
convertible into or exchangeable for common stocks. Convertible securities have
characteristics similar to both fixed income and equity securities. Because of
the conversion feature, the market value of convertible securities tends to move
together with the market value of the underlying common stock. As a result, the
Portfolio's selection of convertible securities is based, to a great extent, on
the potential for capital appreciation that may exist in the underlying stock.
The value of convertible securities is also affected by prevailing interest
rates, the credit quality of the issuer, and any call provisions. Futures
Contracts and Options on Futures Contracts: The Fund may enter into contracts
for the purchase or sale of securities. A purchase of a futures contract means
the acquisition of a contractual right to obtain delivery to the Fund of
securities called for by the contract at a specified price during a specified
future month. When a futures contract is sold, the Fund incurs a contractual
obligation to deliver the securities underlying the contract at a specified
price on a specified date during a specified future month. The Fund may sell
stock index futures contracts in anticipation of, or during, a market decline to
attempt to offset the decrease in market value of its common stocks that might
otherwise result; and it may purchase such contracts in order to offset
increases in the cost of common stocks that it intends to purchase. The Fund may
also purchase and write options to buy or sell futures contracts. The Fund may
write options on futures only on a covered basis. Options on futures are similar
to options on securities except that options on futures give the purchaser the
right, in return for the premium paid, to assume a position in a futures
contract, rather than actually to purchase or sell the futures contract, at a
specified exercise price at any time during the period of the option. When the
Fund enters into a futures transaction it must deliver to the futures commission
merchant selected by the Fund, an amount referred to as "initial margin." This
amount is maintained by the futures commission merchant in a segregated account
at the custodian bank. Thereafter, a "variation margin" may be paid by the Fund
to, or drawn by the Fund from, such account in accordance with controls set for
such accounts, depending upon changes in the price of the underlying securities
to the futures contract. Options: The Fund may invest in put and call options
for various stocks and stock indices that are traded on national securities
exchanges, from time to time as the Subadvisor deems to be appropriate. Options
will be used for hedging purposes and will not be engaged in for speculative
purposes. A put option gives the purchaser of the option the right to sell, and
the writer the obligation to buy, the underlying security at any time during the
option period. A call option gives the purchaser of the option the right to buy,
and the writer of the option the obligation to sell, the underlying security at
any time during the option period. The premium paid to the writer is the
consideration for undertaking the obligations under the option contract.
Although the Fund will engage in option transactions only as hedging
transactions and not for speculative purposes, there are risks associated with
such investment including the following: (i) the success of a hedging strategy
may depend on the ability of the Subadvisor to predict movements in the prices
of the individual securities, fluctuations in markets and movements in interest
rates; (ii) there may be an imperfect correlation between the changes in market
value of the stocks held by the Fund and the prices of options; (iii) there may
not be liquid secondary market for options; and (iv) while the Fund will receive
a premium when it writes covered call options, it may not participate fully in a
rise in the market value of the underlying security. When writing options (other
than covered call options), the Fund must establish and maintain a segregated
account with the Fund's Custodian containing cash or liquid, high grade debt
securities in an amount at least equal to the market value of the option.
Repurchase Agreements: Agreements by which a person obtains a security and
simultaneously commits to return it to the seller at any agreed upon price
(including principal and interest) on an agreed upon date within a number of
days from the date of purchase. The Fund's Custodian or its agents will hold the
security as collateral for the repurchase agreement. The Fund bears a risk of
loss in the event the other party defaults on its obligations and the Fund is
delayed or prevented from its right to dispose of the collateral securities.
Time Deposit: A non-negotiable receipt issued by a bank in exchange for the
deposit of funds. Like a certificate of deposit, it earns a specified rate of
interest over a definite period of time; however, it cannot be traded in the
secondary market. Time deposits with a withdrawal penalty are considered to be
illiquid securities. U.S. Government Agency Obligations: Certain Federal
agencies such as the Government National Mortgage Association ("GNMA") have been
established as instrumentalities of the United States Government to supervise
and finance certain types of activities. Issues of these agencies, while not
direct obligations of the United States Government, are either backed by the
full faith and credit of the United States (i.e., GNMA securities) or supported
by the issuing agencies' right to borrow from the Treasury. The issues of other
agencies are supported by the credit of the instrumentality (i.e., Federal
National Mortgage Association securities). U.S. Government Securities: Bills,
notes and bonds issued by the U.S. Government and backed by the full faith and
credit of the United States. U.S. Treasury Obligations: Bills, notes and bonds
issued by the U.S. Treasury, and separately traded interest and principal
component parts of such obligations that are transferable through the Federal
book-entry system known as Separately Traded Registered Interest and Principal
Securities ("STRIPS"). Warrants: Instruments giving holders the right, but not
the obligations, to buy shares of a company at a given price during a specified
period.
LETTER OF INTENT
Date
Calvert Distributors, Inc.
4550 Montgomery Avenue
Bethesda, MD 20814
Ladies and Gentlemen:
By signing this Letter of Intent, or affirmatively marking the Letter of
Intent option on my Fund Account Application Form, I agree to be bound by the
terms and conditions applicable to Letters of Intent appearing in the Prospectus
and the Statement of Additional Information for the Fund and the provisions
described below as they may be amended from time to time by the Fund. Such
amendments will apply automatically to existing Letters of Intent.
I intend to invest in the shares of:
Fund or Portfolio name*
during the thirteen (13) month period from the date of my first purchase
pursuant to this Letter (which cannot be more than ninety (90) days prior to the
date of this Letter or my Fund Account Application Form, whichever is
applicable), an aggregate amount (excluding any reinvestments of distributions)
of at least fifty thousand dollars ($50,000) which, together with my current
holdings of the Fund (at public offering price on date of this Letter or my Fund
Account Application Form, whichever is applicable), will equal or exceed the
amount checked below:
__ $50,000(not available for mid-load funds) __ $100,000 __ $250,000
__ $500,000 __ $1,000,000 __ $2,500,000
Subject to the conditions specified below, including the terms of escrow,
to which I hereby agree, each purchase occurring after the date of this Letter
will be made at the public offering price applicable to a single transaction of
the dollar amount specified above, as described in the Fund's prospectus. No
portion of the sales charge imposed on purchases made prior to the date of this
Letter will be refunded. I am making no commitment to purchase shares, but if my
purchases within thirteen months from the date of my first purchase do not
aggregate the minimum amount specified above, I will pay the increased amount of
sales charges prescribed in the terms of escrow described below. I understand
that 4.75% of the minimum dollar amount specified above will be held in escrow
in the form of shares (computed to the nearest full share). These shares will be
held subject to the terms of escrow described below. From the initial purchase
(or subsequent purchases if necessary), 4.75% of the dollar amount specified in
this Letter shall be held in escrow in shares of the Fund by the Fund's transfer
agent. For example, if the minimum amount specified under the Letter is $50,000,
the escrow shall be shares valued in the amount of $2,375 (computed at the
public offering price adjusted for a $50,000 purchase). All dividends and any
capital gains distribution on the escorted shares will be credited to my
account. If the total minimum investment specified under the Letter is completed
within a thirteen month period, escrowed shares will be promptly released to me.
However, shares disposed of prior to completion of the purchase requirement
under the Letter will be deducted from the amount required to complete the
investment commitment. Upon expiration of this Letter, the total purchases
pursuant to the Letter are less than the amount specified in the Letter as the
intended aggregate purchases, Calvert Distributors, Inc. ("CDI") will bill me
for an amount equal to the difference between the lower load I paid and the
dollar amount of sales charges which I would have paid if the total amount
purchased had been made at a single time. If not paid by the investor within 20
days, CDI will debit the difference from my account. Full shares, if any,
remaining in escrow after the aforementioned adjustment will be released and,
upon request, remitted to me. I irrevocably constitute and appoint CDI as my
attorney-in-fact, with full power of substitution, to surrender for redemption
any or all escrowed shares on the books of the Fund. This power of attorney is
coupled with an interest. The commission allowed by CDI to the broker-dealer
named herein shall be at the rate applicable to the minimum amount of my
specified intended purchases. The Letter may be revised upward by me at any time
during the thirteen-month period, and such a revision will be treated as a new
Letter, except that the thirteen-month period during which the purchase must be
made will remain unchanged and there will be no retroactive reduction of the
sales charges paid on prior purchases. In determining the total amount of
purchases made hereunder, shares disposed of prior to termination of this Letter
will be deducted. My broker-dealer shall refer to this Letter of Intent in
placing any future purchase orders for me while this Letter is in effect.
Dealer Name of Investor(s)
By Authorized Signer Address
Date Signature of Investor(s)
Date Signature of Investor(s)
- --------
*"Fund" in this Letter of Intent shall refer to the Fund or Portfolio, as the
case may be, here indicated.
<PAGE>
PART C. OTHER INFORMATION
Item 24. Financial Statements and Exhibits
(a) Financial statements
Not Applicable
Financial statements incorporated by reference:
Not Applicable
Schedules II-VII, inclusive, for which provision is
made in the applicable accounting regulation of the Securities and
Exchange Commission, are omitted because they are not required under the
related instructions, or they are inapplicable, or the required
information is presented in the financial statements or notes thereto.
(b) Exhibits:
1. Declaration of Trust (incorporated by reference to
Registrant's Initial Registration Statement,
March 15, 1982).
2. By-Laws (incorporated by reference to Registrant's
Pre-Effective Amendment No. 2, September 3, 1982).
4. Specimen Stock Certificate for all series of
The Calvert Fund (incorporated by reference to
Registrant's Post-Effective Amendment No.28,
July 19, 1995).
5.a. Advisory Contract (incorporated by reference
to Registrant's Post-Effective Amendment No. 3,
November 1, 1984).
5.b. Sub-Advisory Contract (Portfolio Advisory
Services, Inc.)(incorporated by reference to
Registrant's Post Effective Amendment No. 30,
July 31, 1996).
6. Underwriting and Dealer Agreement (incorporated by
reference to Registrant's Post-Effective Amendment
No. 27, January 31, 1995).
7. Trustees' Deferred Compensation Agreement
(incorporated by reference to Registrant's
Post-Effective Amendment No. 20, January 28, 1992).
8. Custodial Contract (incorporated by reference
to Registrant's Post-Effective Amendment No. 21,
January 29, 1993).
9. Transfer Agency Contract (incorporated by
reference to Registrant's Post-Effective
Amendment No. 3, November 1, 1984).
10. Opinion and Consent of Counsel as to Legality of Shares
Being Registered.
14. Retirement Plans (incorporated by reference to
Registrant's Post-Effective Amendment No. 20,
January 28, 1992).
15. Rule 12b-1 Distribution Plan with respect to
Registrant's Class B and C shares (incorporated by
reference to Registrant's Post-Effective
Amendment No.27, January 31, 1995). With respect to Class
A shares (incorporated by reference to Registrant's
Post-Effective Amendment No. 28, July 19, 1995) for all
series of The Calvert Fund.
16. Schedule for computation of performance quotation
(incorporated by reference to Registrant's
Post-Effective Amendment No. 14, January 25, 1989).
18. Multiple-class Plan under the Investment Company Act
of 1940 Rule 18f-3, (incorporated by reference to
Registrant's Post-Effective Amendment No. 29,
January 31, 1996).
Exhibits 3, 11, 12 and 13 are omitted because they are
inapplicable.
Item 25. Persons Controlled By or Under Common Control With Registrant
Registrant is controlled by its Board of Trustees, which is a
common Board with four other registered investment companies, Calvert
Tax-Free Reserves, First Variable Rate Fund for Government Income,
Calvert Cash Reserves, and Calvert Municipal Fund, Inc. In addition,
some members of Registrant's Board of Trustees also serve on the Board
of Calvert Social Investment Fund, Acacia Capital Corporation, Calvert
New World Fund, Inc., and Calvert World Values Fund, Inc.
Item 26. Number of Holders of Securities
As of October 25, 1996, there were 3,012 holders of record of
Registrant's Class A shares of beneficial interest for Calvert Income Fund.
As of October 25, 1996, there were 109 holders of record of
Registrant's Class A shares of beneficial interest for Calvert Income Fund.
As of October 25, 1996, there were 12,876 holders of record of
Registrant's Class A shares of beneficial interest for Calvert Strategic
Growth Fund.
As of October 25, 1996, there were 2,002 holders of record of
Registrant's Class C shares of beneficial interest for Calvert Strategic
Growth Fund.
As of October 25, 1996, there were 0 holders of record of
Registrant's Class A shares of beneficial interest for Calvert Small Cap Fund.
As of October 25, 1996, there were 0 holders of record of
Registrant's Class A shares of beneficial interest for Calvert Small Cap Fund.
Item 27. Indemnification
Registrant's Declaration of Trust, which Declaration is Exhibit
1 of this Registration Statement, provides, in summary, that officers,
trustees, employees, and agents shall be indemnified by Registrant
against liabilities and expenses incurred by such persons in connection
with actions, suits, or proceedings arising out of their offices or
duties of employment, except that no indemnification can be made to such
a person if he has been adjudged liable of willful misfeasance, bad
faith, gross negligence, or reckless disregard of his duties. In the
absence of such an adjudication, the determination of eligibility for
indemnification shall be made by independent counsel in a written
opinion or by the vote of a majority of a quorum of trustees who are
neither "interested persons" of Registrant, as that term is defined in
Section 2(a)(19) of the Investment Company Act of 1940, nor parties to
the proceeding.
Registrant's Declaration of Trust also provides that Registrant
may purchase and maintain liability insurance on behalf of any officer,
trustee, employee or agent against any liabilities arising from such
status. In this regard, Registrant maintains a Directors & Officers
(Partners) Liability Insurance Policy with Chubb Group of Insurance
Companies, 15 Mountain View Road, Warren, New Jersey 07061, providing
Registrant with $5 million in directors and officers liability coverage,
plus $3 million in excess directors and officers liability coverage for
the independent trustees/directors only. Registrant also maintains an
$8 million Investment Company Blanket Bond issued by ICI Mutual
Insurance Company, P.O. Box 730, Burlington, Vermont, 05402.
Item 28. Business and Other Connections of Investment Adviser
Name of Company, Principal
Name Business and Address Capacity
Clifton S. Calvert Asset Management Officer
Sorrell, Jr. Company, Inc. and
Investment Advisor Director
4550 Montgomery Avenue
Bethesda, MD 20814
------------------
Calvert Group, Ltd. Officer
Holding Company and
4550 Montgomery Avenue Director
Bethesda, MD 20814
------------------
Calvert Shareholder Officer
Services, Inc. and
Transfer Agent Director
4550 Montgomery Avenue
Bethesda, MD 20814
------------------
Calvert Administrative Officer
Services Company and
Service Company Director
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Calvert Distributors, Inc. Director
Broker-Dealer
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
First Variable Rate Fund Officer
for Government Income and
Calvert Tax-Free Reserves Trustee
Calvert Social Investment Fund
Money Management Plus
The Calvert Fund
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Acacia Capital Corporation Officer
Calvert Municipal Fund, Inc. and
Calvert World Values Fund, Inc. Director
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Calvert New World Fund, Inc. Director
Investment Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Calvert Sloan Advisers, L.L.C. Director
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Item 28. Business and Other Connections of Investment Adviser
Name of Company, Principal
Name Business and Address Capacity
Ronald M. First Variable Rate Fund Officer
Wolfsheimer for Government Income
Calvert Tax-Free Reserves Money
Management Plus
Calvert Social Investment Fund
The Calvert Fund
Acacia Capital Corporation
Calvert Municipal Fund, Inc.
Calvert World Values Fund, Inc.
Calvert New World Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
-----------------
Calvert Asset Management Officer
Company, Inc.
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Calvert Group, Ltd. Officer
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Calvert Shareholder Officer
Services, Inc.
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Calvert Administrative Officer
Services Company and
Service Company Director
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Calvert Distributors, Inc. Officer
Broker-Dealer and
4550 Montgomery Avenue Director
Bethesda, Maryland 20814
------------------
Calvert Sloan Advisers, L.L.C. Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Item 28. Business and Other Connections of Investment Adviser
Name of Company, Principal
Name Business and Address Capacity
David R. Rochat First Variable Rate Fund Officer
for Government Income and
Calvert Tax-Free Reserves Trustee
Money Management Plus
The Calvert Fund
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Calvert Municipal Fund, Inc. Officer
Investment Company and
4550 Montgomery Avenue Director
Bethesda, Maryland 20814
------------------
Calvert Asset Management Officer
Company, Inc. and
Investment Advisor Director
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Chelsea Securities, Inc. Officer
Securities Firm and
Post Office Box 93 Director
Chelsea, Vermont 05038
------------------
Grady, Berwald & Co. Officer
Holding Company and
43A South Finley Avenue Director
Basking Ridge, NJ 07920
------------------
Reno J. Martini Calvert Asset Management Officer
Company, Inc.
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Calvert Group, Ltd. Officer
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Calvert Sloan Advisers, L.L.C.. Director
Holding Company and
4550 Montgomery Avenue Officer
Bethesda, Maryland 20814
------------------
Reno J. Martini First Variable Rate Fund for Officer
Government Income
Calvert Tax-Free Reserves
Money Management Plus
Calvert Social Investment Fund
The Calvert Fund
Acacia Capital Corporation
Calvert Municipal Fund, Inc.
Calvert World Values Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Calvert New World Fund, Inc. Director
Investment Company and
4550 Montgomery Avenue Officer
Bethesda, Maryland 20814
------------------
Charles T. Nason Acacia Mutual Life Insurance Officer
Acacia National Life Insurance and
Insurance Companies Director
51 Louisiana Avenue, NW
Washington, D.C. 20001
------------------
Acacia Financial Corporation Officer
Holding Company and
51 Louisiana Avenue, NW Director
Washington, D.C. 20001
------------------
Acacia Federal Savings Bank Director
Savings Bank
7600-B Leesburg Pike
Falls Church, Virginia 22043
------------------
Enterprise Resources, Inc. Director
Business Support Services
51 Louisiana Avenue, NW
Washington, D.C. 20001
------------------
Acacia Insurance Management Officer
Services Corporation and
Service Corporation Director
51 Louisiana Avenue, NW
Washington, D.C. 20001
------------------
Calvert Group, Ltd. Director
Holding Company
4550 Montgomery Avenue
Bethesda, MD 20814
------------------
Calvert Administrative Director
Services Co.
Service Company
4550 Montgomery Avenue
Bethesda, MD 20814
------------------
Calvert Asset Management Co., Inc. Director
Investment Advisor
4550 Montgomery Avenue
Bethesda, MD 20814
------------------
Calvert Shareholder Services, Inc. Director
Transfer Agent
4550 Montgomery Avenue
Bethesda, MD 20814
------------------
The Advisors Group, Inc. Director
Broker-Dealer and
Investment Advisor
51 Louisiana Avenue, NW
Washington, D.C. 20001
------------------
Calvert Social Investment Fund Trustee
Investment Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
-----------------
Gardner, Montgomery & Company Director
Tax Preparation
51 Louisiana Avenue, NW
Washington, D.C. 20001
------------------
Item 28. Business and Other Connections of Investment Adviser
Name of Company, Principal
Name Business and Address Capacity
Robert-John H. Acacia National Life Insurance Officer
Sands Insurance Company and
51 Louisiana Avenue, NW Director
Washington, D.C. 20001
------------------
Acacia Mutual Life Insurance Officer
Insurance Company
51 Louisiana Avenue, NW
Washington, D.C. 20001
------------------
Acacia Financial Corporation Officer
Holding Company and
51 Louisiana Avenue, NW Director
Washington, D.C. 20001
------------------
Acacia Federal Savings Bank Officer
Savings Bank
7600-B Leesburg Pike
Falls Church, Virginia 22043
------------------
Enterprise Resources, Inc. Director
Business Support Services
51 Louisiana Avenue, NW
Washington, D.C. 20001
------------------
Acacia Realty Corporation Officer
Real Estate Investments
51 Louisiana Avenue, NW
Washington, D.C. 20001
------------------
Acacia Insurance Management Officer
Services Corporation and
Service Corporation Director
51 Louisiana Avenue, NW
Washington, D.C. 20001
------------------
Calvert Group, Ltd. Director
Holding Company
4550 Montgomery Avenue
Bethesda, MD 20814
------------------
Calvert Administrative Director
Services, Co.
Service Company
4550 Montgomery Avenue
Bethesda, MD 20814
------------------
Calvert Asset Management Co., Inc. Director
Investment Advisor
4550 Montgomery Avenue
Bethesda, MD 20814
------------------
Calvert Shareholder Services, Inc. Director
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
The Advisors Group, Inc. Director
Broker-Dealer and
Investment Advisor
51 Louisiana Avenue, N.W.
Washington, D.C. 20001
------------------
Gardner, Montgomery & Company Director
Tax Preparation and
51 Louisiana Avenue, NW Officer
Washington, D.C. 20001
------------------
Item 28. Business and Other Connections of Investment Adviser
Name of Company, Principal
Name Business and Address Capacity
William M. Tartikoff Acacia National Life Insurance Officer
Insurance Company
51 Louisiana Avenue, NW
Washington, D.C. 20001
------------------
First Variable Rate Fund Officer
for Government Income
Calvert Tax-Free Reserves
Money Management Plus
Calvert Social Investment Fund
The Calvert Fund
Acacia Capital Corporation
Calvert Municipal Fund, Inc.
Calvert World Values Fund, Inc.
Calvert New World Fund, Inc.
Investment Companies Officer
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Calvert Group, Ltd. Officer
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Calvert Administrative Officer
Services Company
Service Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Calvert Asset Management Officer
Company, Inc.
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Calvert Shareholder Officer
Services, Inc.
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Calvert Distributors, Inc. Director
Broker-Dealer and
4550 Montgomery Avenue Officer
Bethesda, Maryland 20814
------------------
Calvert Sloan Advisers, L.L.C. Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Item 28. Business and Other Connections of Investment Adviser
Name of Company, Principal
Name Business and Address Capacity
Susan Walker Bender Calvert Group, Ltd. Officer
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Calvert Administrative Officer
Services Company
Service Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Calvert Asset Management Officer
Company, Inc.
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Calvert Shareholder Officer
Services, Inc.
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Calvert Distributors, Inc. Officer
Broker-Dealer
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
First Variable Rate Fund Officer
for Government Income
Calvert Tax-Free Reserves
Calvert Cash Reserves
Calvert Social Investment Fund
The Calvert Fund
Acacia Capital Corporation
Calvert Municipal Fund, Inc.
Calvert World Values Fund, Inc.
Calvert New World Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Calvert Sloan Advisers, L.L.C. Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Item 28. Business and Other Connections of Investment Adviser
Name of Company, Principal
Name Business and Address Capacity
Katherine Stoner Calvert Group, Ltd. Officer
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Calvert Administrative Officer
Services Company
Service Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Calvert Asset Management Officer
Company, Inc.
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Calvert Shareholder Officer
Services, Inc.
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Calvert Distributors, Inc. Officer
Broker-Dealer
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
First Variable Rate Fund Officer
for Government Income
Calvert Tax-Free Reserves
Calvert Cash Reserves
Calvert Social Investment Fund
The Calvert Fund
Acacia Capital Corporation
Calvert Municipal Fund, Inc.
Calvert World Values Fund, Inc.
Calvert New World Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Calvert Sloan Advisers, L.L.C. Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Item 28. Business and Other Connections of Investment Adviser
Name of Company, Principal
Name Business and Address Capacity
Lisa Crossley Calvert Group, Ltd. Officer
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Calvert Administrative Officer
Services Company
Service Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Calvert Asset Management Officer
Company, Inc.
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Calvert Shareholder Officer
Services, Inc.
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Calvert Distributors, Inc. Officer
Broker-Dealer
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
First Variable Rate Fund Officer
for Government Income
Calvert Tax-Free Reserves
Calvert Cash Reserves
Calvert Social Investment Fund
The Calvert Fund
Acacia Capital Corporation
Calvert Municipal Fund, Inc.
Calvert World Values Fund, Inc.
Calvert New World Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Calvert Sloan Advisers, L.L.C. Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Item 28. Business and Other Connections of Investment Adviser
Name of Company, Principal
Name Business and Address Capacity
Ivy Wafford Duke Calvert Group, Ltd. Officer
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Calvert Administrative Officer
Services Company
Service Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Calvert Asset Management Officer
Company, Inc.
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Calvert Shareholder Officer
Services, Inc.
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Calvert Distributors, Inc. Officer
Broker-Dealer
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
First Variable Rate Fund Officer
for Government Income
Calvert Tax-Free Reserves
Calvert Cash Reserves
Calvert Social Investment Fund
The Calvert Fund
Acacia Capital Corporation
Calvert Municipal Fund, Inc.
Calvert World Values Fund, Inc.
Calvert New World Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Calvert Sloan Advisers, L.L.C. Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Item 28. Business and Other Connections of Investment Adviser
Name of Company, Principal
Name Business and Address Capacity
Daniel K. Hayes Calvert Asset Management Officer
Company, Inc.
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
First Variable Rate Fund Officer
for Government Income
Calvert Tax-Free Reserves
Money Management Plus
Calvert Social Investment Fund
The Calvert Fund
Acacia Capital Corporation
Calvert Municipal Fund, Inc.
Calvert World Values Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
-------------------
Annette Krakovitz Calvert Asset Management Officer
Company, Inc.
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
John Nichols Calvert Asset Management Officer
Company, Inc.
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
David Leach Calvert Asset Management Officer
Company, Inc.
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Item 28. Business and Other Connections of Investment Adviser
Name of Company, Principal
Name Business and Address Capacity
Geoff Ashton Calvert Asset Management Officer
Company, Inc.
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Calvert Distributors, Inc. Officer
Broker-Dealer
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Lee Mahfouz Calvert Asset Management Officer
Company, Inc.
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Calvert Distributors, Inc. Officer
Broker-Dealer
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Item 29. Principal Underwriters
(a) Registrant's principal underwriter also underwrites the
securities of both of Registrant's series, as well as the securities of
First Variable Rate Fund for Government Income, Calvert Tax-Free
Reserves, Calvert Social Investment Fund, Calvert Cash Reserves, Calvert
Municipal Fund, Inc., Calvert World Values Fund, Inc., Calvert New World
Fund, Inc., and Acacia Capital Corporation.
(b) Positions of Underwriter's Officer and Directors
Name and Principal Position(s) with Position(s) with
Business Address* Underwriter Registrant
Clifton S. Sorrell, Jr. Director President
and Trustee
William M. Tartikoff Director, Senior Vice President
Vice President, and Secretary
and Secretary
Ronald M. Wolfsheimer Director, Senior Treasurer
Vice President
and Controller
Steven J. Schueth President None
Karen Becker Vice President, Operations None
Steven Cohen Vice President None
Geoff Ashton Regional Vice President None
Lee Mahfouz Regional Vice President None
Susan Walker Bender Assistant Secretary Assistant Secretary
Katherine Stoner Assistant Secretary Assistant Secretary
Ivy Wafford Duke Assistant Secretary Assistant Secretary
Lisa D. Crossley Assistant Secretary and Assistant Secretary
Compliance Officer
*The principal business address of the above individuals is 4550
Montgomery Avenue, Suite 1000N, Bethesda, Maryland 20814.
(c) Not Applicable.
Item 30. Location of Accounts and Records
Ronald M. Wolfsheimer, Treasurer
and
William M. Tartikoff, Secretary
4550 Montgomery Avenue, Suite 1000N
Bethesda, Maryland 20814
Item 31. Management Services
Not Applicable
Item 32. Undertakings
a) Not Applicable
b) The registrant undertakes to file a post-effective amendment,
using financial statements which need not be certified, within four to six
months from the effective date of Registrant's 1933 Act registration statement.
c) The Registrant undertakes to furnish to each person to
whom a Prospectus is delivered, a copy of the Registrant's latest Annual
Report to Shareholders, upon request and without charge, when available.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and
the Investment Company Act of 1940, the Registrant certifies that it
meets all of the requirements for effectiveness of this registration
statement pursuant to Rule 485(a) under the Securities Act of 1933 and
has duly caused this registration statement to be signed on its behalf
by the undersigned, thereto duly authorized in the City of Bethesda, and
State of Maryland on the 31st day of October, 1996.
THE CALVERT FUND
By:__________________________
Clifton S. Sorrell, Jr.
President and Trustee
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933,
this Registration Statement has been signed below by the following
persons in the capacities indicated.
Signature Title Date
___________**_____________ Trustee and Principal 10/31/96
Clifton S. Sorrell, Jr. Executive Officer
__________**______________ Principal Accounting 10/31/96
Ronald M. Wolfsheimer Officer
__________**____________ Trustee 10/31/96
Richard L. Baird, Jr.
__________**____________ Trustee 10/31/96
Frank H. Blatz, Jr., Esq.
__________**____________ Trustee 10/31/96
Frederick T. Borts, M.D.
__________**____________ Trustee 10/31/96
Charles E. Diehl
__________**____________ Trustee 10/31/96
Douglas E. Feldman
__________**____________ Trustee 10/31/96
Peter W. Gavian
__________**____________ Trustee 10/31/96
John G. Guffey, Jr.
__________**____________ Trustee 10/31/96
Arthur J. Pugh
__________**____________ Trustee 10/31/96
David R. Rochat
__________**____________ Trustee 10/31/96
D. Wayne Silby
** Signed by Susan Walker Bender______ pursuant to power of attorney,
attached hereto.
Exhibit 10
October 31, 1996
Securities and Exchange Commission
Judiciary Plaza
450 Fifth Street, N.W.
Washington, D.C. 20549
Re: Exhibit 10, Form N-1A
The Calvert Fund
File numbers 2-76510 and 811-3416
Ladies and Gentlemen:
As Assistant Counsel to The Calvert Fund (the "Trust"), it is
my opinion, based upon an examination of the Trust's Declaration of
Trust and By-Laws and such other original or photostatic copies of Trust
records, certificates of public officials, documents, papers, statutes,
and authorities as I deemed necessary to form the basis of this opinion,
that the securities being registered by this Post-Effective Amendment
No. 31 of the Trust will, when sold, be legally issued, fully paid and
non-assessable.
Consent is hereby given to file this opinion of counsel with
the Securities and Exchange Commission as an Exhibit to the Trust's
Post-Effective Amendment No. 31 to its Registration Statement.
Sincerely,
Ivy Wafford Duke
Assistant Counsel
<PAGE>
Exhibit Index
Form N-1A
Item No.
Exhibit-23
24(b)(10) Form of Opinion and Consent of Counsel
Exhibit-24 Power of Attorney
POWER OF ATTORNEY
I, the undersigned Trustee/Director of First
Variable Rate Fund for Government Income, Calvert Tax-Free Reserves,
Calvert Cash Reserves (doing business as Money Management Plus), The
Calvert Fund, and Calvert Municipal Fund, Inc. (collectively, the
"Funds"), hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff,
Susan Walker Bender, Beth-ann Roth, and Katherine Stoner my true and
lawful attorneys, with full power to each of them, to sign for me and in
my name in the appropriate capacities, all registration statements and
amendments filed by the Funds with any federal or state agency, and to
do all such things in my name and behalf necessary for registering and
maintaining registration or exemptions from registration of the Funds
with any government agency in any jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things
in my name and behalf to comply with the provisions of all federal,
state and foreign laws, regulations, and policy pronouncements affecting
the Funds, including, but not limited to, the Securities Act of 1933,
the Securities Exchange Act of 1934, the Investment Company Act of 1940,
the Investment Advisers Act of 1940, and all state laws regulating the
securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Funds in
connection with any transaction approved by the Board of
Trustee/Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the
Funds, the signing is automatically ratified and confirmed by me by
virtue of this Power of Attorney.
WITNESS my hand on the date set forth below.
May 4, 1994
Date Signature
Richard L. Baird, Jr.
Witness Name of
Trustee/Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Trustee/Director of First Variable Rate Fund
for Government Income, Calvert Tax-Free Reserves, Calvert Cash Reserves
(doing business as Money Management Plus), The Calvert Fund, and Calvert
Municipal Fund, Inc. (collectively, the "Funds"), hereby constitute
Ronald M. Wolfsheimer, William M. Tartikoff, Susan Walker Bender,
Beth-ann Roth, and Katherine Stoner my true and lawful attorneys, with
full power to each of them, to sign for me and in my name in the
appropriate capacities, all registration statements and amendments filed
by the Funds with any federal or state agency, and to do all such things
in my name and behalf necessary for registering and maintaining
registration or exemptions from registration of the Funds with any
government agency in any jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things
in my name and behalf to comply with the provisions of all federal,
state and foreign laws, regulations, and policy pronouncements affecting
the Funds, including, but not limited to, the Securities Act of 1933,
the Securities Exchange Act of 1934, the Investment Company Act of 1940,
the Investment Advisers Act of 1940, and all state laws regulating the
securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Funds in
connection with any transaction approved by the Board of
Trustee/Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the
Funds, the signing is automatically ratified and confirmed by me by
virtue of this Power of Attorney.
WITNESS my hand on the date set forth below.
May 4, 1994
Date Signature
Frank H. Blatz, Jr.
Witness Name of Trustee/Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Trustee/Director of First Variable Rate Fund
for Government Income, Calvert Tax-Free Reserves, Calvert Cash Reserves
(doing business as Money Management Plus), The Calvert Fund, and Calvert
Municipal Fund, Inc. (collectively, the "Funds"), hereby constitute
Ronald M. Wolfsheimer, William M. Tartikoff, Susan Walker Bender,
Beth-ann Roth, and Katherine Stoner my true and lawful attorneys, with
full power to each of them, to sign for me and in my name in the
appropriate capacities, all registration statements and amendments filed
by the Funds with any federal or state agency, and to do all such things
in my name and behalf necessary for registering and maintaining
registration or exemptions from registration of the Funds with any
government agency in any jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things
in my name and behalf to comply with the provisions of all federal,
state and foreign laws, regulations, and policy pronouncements affecting
the Funds, including, but not limited to, the Securities Act of 1933,
the Securities Exchange Act of 1934, the Investment Company Act of 1940,
the Investment Advisers Act of 1940, and all state laws regulating the
securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Funds in
connection with any transaction approved by the Board of
Trustee/Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the
Funds, the signing is automatically ratified and confirmed by me by
virtue of this Power of Attorney.
WITNESS my hand on the date set forth below.
May 4, 1994
Date Signature
Frederick T. Borts
Witness Name of Trustee/Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Trustee/Director of First Variable Rate Fund
for Government Income, Calvert Tax-Free Reserves, Calvert Cash Reserves
(doing business as Money Management Plus), The Calvert Fund, and Calvert
Municipal Fund, Inc. (collectively, the "Funds"), hereby constitute
Ronald M. Wolfsheimer, William M. Tartikoff, Susan Walker Bender,
Beth-ann Roth, and Katherine Stoner my true and lawful attorneys, with
full power to each of them, to sign for me and in my name in the
appropriate capacities, all registration statements and amendments filed
by the Funds with any federal or state agency, and to do all such things
in my name and behalf necessary for registering and maintaining
registration or exemptions from registration of the Funds with any
government agency in any jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things
in my name and behalf to comply with the provisions of all federal,
state and foreign laws, regulations, and policy pronouncements affecting
the Funds, including, but not limited to, the Securities Act of 1933,
the Securities Exchange Act of 1934, the Investment Company Act of 1940,
the Investment Advisers Act of 1940, and all state laws regulating the
securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Funds in
connection with any transaction approved by the Board of
Trustee/Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the
Funds, the signing is automatically ratified and confirmed by me by
virtue of this Power of Attorney.
WITNESS my hand on the date set forth below.
May 4, 1994
Date Signature
Charles E. Diehl
Witness Name of Trustee/Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Trustee/Director of First Variable Rate Fund
for Government Income, Calvert Tax-Free Reserves, Calvert Cash Reserves
(doing business as Money Management Plus), The Calvert Fund, and Calvert
Municipal Fund, Inc. (collectively, the "Funds"), hereby constitute
Ronald M. Wolfsheimer, William M. Tartikoff, Susan Walker Bender,
Beth-ann Roth, and Katherine Stoner my true and lawful attorneys, with
full power to each of them, to sign for me and in my name in the
appropriate capacities, all registration statements and amendments filed
by the Funds with any federal or state agency, and to do all such things
in my name and behalf necessary for registering and maintaining
registration or exemptions from registration of the Funds with any
government agency in any jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things
in my name and behalf to comply with the provisions of all federal,
state and foreign laws, regulations, and policy pronouncements affecting
the Funds, including, but not limited to, the Securities Act of 1933,
the Securities Exchange Act of 1934, the Investment Company Act of 1940,
the Investment Advisers Act of 1940, and all state laws regulating the
securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Funds in
connection with any transaction approved by the Board of
Trustee/Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the
Funds, the signing is automatically ratified and confirmed by me by
virtue of this Power of Attorney.
WITNESS my hand on the date set forth below.
May 4, 1994
Date Signature
Douglas E. Feldman
Witness Name of Trustee/Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Trustee/Director of First Variable Rate Fund
for Government Income, Calvert Tax-Free Reserves, Calvert Cash Reserves
(doing business as Money Management Plus), The Calvert Fund, and Calvert
Municipal Fund, Inc. (collectively, the "Funds"), hereby constitute
Ronald M. Wolfsheimer, William M. Tartikoff, Susan Walker Bender,
Beth-ann Roth, and Katherine Stoner my true and lawful attorneys, with
full power to each of them, to sign for me and in my name in the
appropriate capacities, all registration statements and amendments filed
by the Funds with any federal or state agency, and to do all such things
in my name and behalf necessary for registering and maintaining
registration or exemptions from registration of the Funds with any
government agency in any jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things
in my name and behalf to comply with the provisions of all federal,
state and foreign laws, regulations, and policy pronouncements affecting
the Funds, including, but not limited to, the Securities Act of 1933,
the Securities Exchange Act of 1934, the Investment Company Act of 1940,
the Investment Advisers Act of 1940, and all state laws regulating the
securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Funds in
connection with any transaction approved by the Board of
Trustee/Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the
Funds, the signing is automatically ratified and confirmed by me by
virtue of this Power of Attorney.
WITNESS my hand on the date set forth below.
May 4, 1994
Date Signature
Peter W. Gavian
Witness Name of Trustee/Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Trustee/Director of First Variable Rate Fund
for Government Income, Calvert Tax-Free Reserves, Calvert Cash Reserves
(doing business as Money Management Plus), The Calvert Fund, and Calvert
Municipal Fund, Inc. (collectively, the "Funds"), hereby constitute
Ronald M. Wolfsheimer, William M. Tartikoff, Susan Walker Bender,
Beth-ann Roth, and Katherine Stoner my true and lawful attorneys, with
full power to each of them, to sign for me and in my name in the
appropriate capacities, all registration statements and amendments filed
by the Funds with any federal or state agency, and to do all such things
in my name and behalf necessary for registering and maintaining
registration or exemptions from registration of the Funds with any
government agency in any jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things
in my name and behalf to comply with the provisions of all federal,
state and foreign laws, regulations, and policy pronouncements affecting
the Funds, including, but not limited to, the Securities Act of 1933,
the Securities Exchange Act of 1934, the Investment Company Act of 1940,
the Investment Advisers Act of 1940, and all state laws regulating the
securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Funds in
connection with any transaction approved by the Board of
Trustee/Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the
Funds, the signing is automatically ratified and confirmed by me by
virtue of this Power of Attorney.
WITNESS my hand on the date set forth below.
May 4, 1994
Date Signature
John G. Guffey, Jr.
Witness Name of Trustee/Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Trustee/Director of First Variable Rate Fund
for Government Income, Calvert Tax-Free Reserves, Calvert Cash Reserves
(doing business as Money Management Plus), The Calvert Fund, and Calvert
Municipal Fund, Inc. (collectively, the "Funds"), hereby constitute
Ronald M. Wolfsheimer, William M. Tartikoff, Susan Walker Bender,
Beth-ann Roth, and Katherine Stoner my true and lawful attorneys, with
full power to each of them, to sign for me and in my name in the
appropriate capacities, all registration statements and amendments filed
by the Funds with any federal or state agency, and to do all such things
in my name and behalf necessary for registering and maintaining
registration or exemptions from registration of the Funds with any
government agency in any jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things
in my name and behalf to comply with the provisions of all federal,
state and foreign laws, regulations, and policy pronouncements affecting
the Funds, including, but not limited to, the Securities Act of 1933,
the Securities Exchange Act of 1934, the Investment Company Act of 1940,
the Investment Advisers Act of 1940, and all state laws regulating the
securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Funds in
connection with any transaction approved by the Board of
Trustee/Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the
Funds, the signing is automatically ratified and confirmed by me by
virtue of this Power of Attorney.
WITNESS my hand on the date set forth below.
May 4, 1994
Date Signature
Arthur J. Pugh
Witness Name of Trustee/Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Trustee/Director of First Variable Rate Fund
for Government Income, Calvert Tax-Free Reserves, Calvert Cash Reserves
(doing business as Money Management Plus), The Calvert Fund, and Calvert
Municipal Fund, Inc. (collectively, the "Funds"), hereby constitute
Ronald M. Wolfsheimer, William M. Tartikoff, Susan Walker Bender,
Beth-ann Roth, and Katherine Stoner my true and lawful attorneys, with
full power to each of them, to sign for me and in my name in the
appropriate capacities, all registration statements and amendments filed
by the Funds with any federal or state agency, and to do all such things
in my name and behalf necessary for registering and maintaining
registration or exemptions from registration of the Funds with any
government agency in any jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things
in my name and behalf to comply with the provisions of all federal,
state and foreign laws, regulations, and policy pronouncements affecting
the Funds, including, but not limited to, the Securities Act of 1933,
the Securities Exchange Act of 1934, the Investment Company Act of 1940,
the Investment Advisers Act of 1940, and all state laws regulating the
securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Funds in
connection with any transaction approved by the Board of
Trustee/Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the
Funds, the signing is automatically ratified and confirmed by me by
virtue of this Power of Attorney.
WITNESS my hand on the date set forth below.
May 4, 1994
Date Signature
David R. Rochat
Witness Name of Trustee/Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Trustee/Director of First Variable Rate Fund
for Government Income, Calvert Tax-Free Reserves, Calvert Cash Reserves
(doing business as Money Management Plus), The Calvert Fund, and Calvert
Municipal Fund, Inc. (collectively, the "Funds"), hereby constitute
Ronald M. Wolfsheimer, William M. Tartikoff, Susan Walker Bender,
Beth-ann Roth, and Katherine Stoner my true and lawful attorneys, with
full power to each of them, to sign for me and in my name in the
appropriate capacities, all registration statements and amendments filed
by the Funds with any federal or state agency, and to do all such things
in my name and behalf necessary for registering and maintaining
registration or exemptions from registration of the Funds with any
government agency in any jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things
in my name and behalf to comply with the provisions of all federal,
state and foreign laws, regulations, and policy pronouncements affecting
the Funds, including, but not limited to, the Securities Act of 1933,
the Securities Exchange Act of 1934, the Investment Company Act of 1940,
the Investment Advisers Act of 1940, and all state laws regulating the
securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Funds in
connection with any transaction approved by the Board of
Trustee/Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the
Funds, the signing is automatically ratified and confirmed by me by
virtue of this Power of Attorney.
WITNESS my hand on the date set forth below.
May 4, 1994
Date Signature
D. Wayne Silby
Witness Name of Trustee/Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Trustee/Director of First Variable Rate Fund
for Government Income, Calvert Tax-Free Reserves, Calvert Cash Reserves
(doing business as Money Management Plus), The Calvert Fund, and Calvert
Municipal Fund, Inc. (collectively, the "Funds"), hereby constitute
Ronald M. Wolfsheimer, William M. Tartikoff, Susan Walker Bender,
Beth-ann Roth, and Katherine Stoner my true and lawful attorneys, with
full power to each of them, to sign for me and in my name in the
appropriate capacities, all registration statements and amendments filed
by the Funds with any federal or state agency, and to do all such things
in my name and behalf necessary for registering and maintaining
registration or exemptions from registration of the Funds with any
government agency in any jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things
in my name and behalf to comply with the provisions of all federal,
state and foreign laws, regulations, and policy pronouncements affecting
the Funds, including, but not limited to, the Securities Act of 1933,
the Securities Exchange Act of 1934, the Investment Company Act of 1940,
the Investment Advisers Act of 1940, and all state laws regulating the
securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Funds in
connection with any transaction approved by the Board of
Trustee/Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the
Funds, the signing is automatically ratified and confirmed by me by
virtue of this Power of Attorney.
WITNESS my hand on the date set forth below.
May 4, 1994
Date Signature
Clifton S. Sorrell, Jr.
Witness Name of Trustee/Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Officer of First Variable Rate Fund for
Government Income, Calvert Tax-Free Reserves, Calvert Cash Reserves
(doing business as Money Management Plus), The Calvert Fund, and Calvert
Municipal Fund, Inc. (collectively, the "Funds"), hereby constitute
William M. Tartikoff, Susan Walker Bender, Beth-ann Roth, and Katherine
Stoner my true and lawful attorneys, with full power to each of them, to
sign for me and in my name in the appropriate capacities, all
registration statements and amendments filed by the Funds with any
federal or state agency, and to do all such things in my name and behalf
necessary for registering and maintaining registration or exemptions
from registration of the Funds with any government agency in any
jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things
in my name and behalf to comply with the provisions of all federal,
state and foreign laws, regulations, and policy pronouncements affecting
the Funds, including, but not limited to, the Securities Act of 1933,
the Securities Exchange Act of 1934, the Investment Company Act of 1940,
the Investment Advisers Act of 1940, and all state laws regulating the
securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Funds in
connection with any transaction approved by the Board of
Trustee/Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the
Funds, the signing is automatically ratified and confirmed by me by
virtue of this Power of Attorney.
WITNESS my hand on the date set forth below.
March 1, 1995
Date Signature
Ronald M. Wolfsheimer
Witness Name of Officer
