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. 35 XX
and/or
REGISTRATION STATEMENT UNDER THE
INVESTMENT COMPANY ACT OF 1940
Amendment No. 35 XX
The Calvert Fund
Calvert New Vision Small Cap Fund
(Exact Name of Registrant as Specified in Charter)
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
(Address of Principal Executive Offices)
Registrant's Telephone Number: (301) 951-4800
William M. Tartikoff, Esq.
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
(Name and Address of Agent for Service)
It is proposed that this filing will become effective
XX Immediately upon filing __ on (date)
pursuant to paragraph (b) pursuant to paragraph (b)
__ 60 days after filing __ on (date)
pursuant to paragraph (a) pursuant to paragraph (a)
of Rule 485.
<PAGE>
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
Fund Transactions
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 May 1, 1998
CALVERT CAPITAL ACCUMULATION FUND
CALVERT NEW VISION SMALL CAP FUND
4550 Montgomery Avenue, Bethesda, Maryland 20814
Calvert Capital Accumulation Fund seeks long-term capital appreciation by
investing primarily in the stock of medium-sized companies using the talent of
one or more investment subadvisors. The market capitalization of companies
chosen for investment will generally be within the range of capitalization of
the S&P 400 Mid-Cap Index, but the Fund may also invest in larger and smaller
companies as deemed appropriate. It is the Advisor's intent that on average,
the market capitalization of the companies represented in the Fund's portfolio
will be mid-sized, with a slight bias toward the growth-style of investing.
Other investments may include foreign securities, convertible issues, and
certain options and futures transactions. The Fund will take reasonable risks
in seeking to achieve its investment objective.
Calvert New Vision Small Cap Fund seeks to achieve long-term capital
appreciation by investing primarily in the equity securities of small
companies (currently those with a total capitalization of less than $1 billion
at the time of the Fund's initial investment) publicly traded in the United
States. In seeking capital appreciation, the Fund invests primarily in the
equity securities of small capitalized growth companies (including American
Depositary Receipts ("ADRs")) that have historically exhibited exceptional
growth characteristics and that, in the Advisor's opinion, have strong
earnings potential relative to the U.S. market as a whole. The Fund employs
aggressive investment strategies that have the potential for yielding high
returns. The Fund will take reasonable risks in seeking to achieve its
investment objective.
Share prices of both Funds may experience substantial fluctuations so that
your shares may be worth less than when you originally purchased them. Income
is not an objective of either Fund; the Funds should not be used to meet
short-term financial needs. There can be no assurance that either Fund will be
successful in meeting its investment objective.
Responsible Investing
To the extent possible, investments are made in enterprises that make a
significant contribution to our society through their products and services
and through the way they do business.
Purchase Information
The Funds both offer three classes of shares, each with different expense
levels and sales charges. You may choose to purchase (i) Class A shares, with
a sales charge imposed at the time you purchase the shares ("front-end sales
charge"); (ii) Class B shares, which impose no front-end sales charge, but
will impose a deferred sales charge at the time of redemption, depending on
how long you have owned the shares )("contingent deferred sales charge," or
"CDSC"), or (iii) Class C shares which impose no front-end sales charge but
will impose a CDSC on shares purchased after May 31, 1998, if they are sold
within one year. Class C shares are not available through all dealers. Class B
and C shares have a higher level of expenses than Class A shares, including
higher Rule 12b-1 fees. These alternatives permit you to choose the method of
purchasing shares that is most beneficial to you, depending on the amount of
the purchase, the length of time you expect to hold the shares, and other
circumstances. See "Alternative Sales Options" for further details.
To Open An Account
Call your investment professional, 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
("SAI") (dated May 1, 1998) has been filed with the Securities and Exchange
Commission (the "Commission") and is incorporated by reference. This free
Statement is available upon request from the Fund: 800-368-2748. The
Commission maintains a website (http://www.sec.gov) that contains the SAI,
material incorporated by reference, and other information regarding
registrants that file electronically with the Commission.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION, NOR HAS THE FEDERAL OR
ANY STATE SECURITIES COMMISSION PASSED ON THE ACCURACY OR ADEQUACY OF THIS
PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
SHARES OF THE FUNDS ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR
ENDORSED BY, ANY BANK, AND ARE NOT FEDERALLY INSURED BY THE FDIC, THE FEDERAL
RESERVE BOARD, OR ANY OTHER AGENCY. WHEN INVESTORS SELL SHARES OF THE FUND,
THE VALUE MAY BE HIGHER OR LOWER THAN THE AMOUNT ORIGINALLY PAID.
<PAGE>
FUND EXPENSES
Capital Accumulation Fund
A. Shareholder Transaction Costs Class A Class B Class C
Maximum Front-End Sales Charge
on Purchases (as a percentage of
offering price) 4.75% None None
Maximum Contingent Deferred Sales Charge
(as percentage of original purchase
price or redemption proceeds,
as applicable None 5.00%* 1.00%**
B. Annual Fund Operating Expenses (Fiscal Year 1997)
(as a percentage of average net assets)
Management Fees 0.89% 0.90% 0.90%
Rule 12b-1 Service and
Distribution Fees 0.35% 1.00% 1.00%
Other Expenses 0.66% 1.46% 1.21%
Total Fund Operating Expenses2 1.91% 3.36% 3.11%
New Vision Small Cap Fund
A. Shareholder Transaction Costs Class A Class B Class C
Maximum Front-End Sales Charge
on Purchases (as a percentage of
offering price) 4.75% None None
Maximum Contingent Deferred Sales Charge
(as percentage of original purchase
price or redemption proceeds,
as applicable None 5.00%* 1.00%**
B. Annual Fund Operating Expenses (Fiscal Year 1997)
(as a percentage of average net assets)
Management Fees 1.00% 1.00% 1.00%
Rule 12b-1 Service and
Distribution Fees 0.25% 1.00% 1.00%
Other Expenses 0.62% 0.99% 0.74%3
Total Fund Operating Expenses2 1.87% 2.99% 2.74%
* A contingent deferred sales charge is imposed on the proceeds of Class B
shares redeemed within 6 years, subject to certain exceptions. That charge is
imposed as a percentage of net asset value at the time of purchase or
redemption, whichever is less and declines from 5% in the first year that
shares are held, to 4% in the second and third years, 3% in the fourth year,
2% in the fifth year, and 1% in the sixth year. There is no charge on
redemptions of Class B shares held for more than six years. See "Calculation
of Contingent Deferred Sales charge" below.
** A contingent deferred sales charge is imposed on the proceeds of Class C
shares redeemed within one year. That charge is imposed as a percentage of net
asset value at the time of purchase or redemption, whichever is less. See
"Calculation of Contingent deferred Sales Charge."
2 Net Fund Operating Expenses after reduction for fees paid indirectly for the
Capital Accumulation fund were:
Class A - 1.85%, Class C - 3.05%
3 Estimated
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; (3) for Class A,
payment of maximum initial sales charge at time of purchase, and (4) for Class
B shares, payment of maximum applicable contingent deferred sales charge.
1 Year 3 Years 5 Years 10 Years
Capital Accumulation Fund
Class A $66 $105 $146 $260
Class B
Assuming a complete
redemption at end of period $84 $143 $195 $332
Assuming no redemption $34 $103 $175 $332
Class C
Assuming a complete
redemption at end of period $41 $96 $163 $342
Assuming no redemption $31 $96 $163 $342
New Vision Small Cap Fund
Class A $66 $103 $144 $256
Class B
Assuming a complete
redemption at end of period $80 $132 $177 $305
Assuming no redemption $30 $92 $157 $305
Class C
Assuming a complete
redemption at end of period $38 $85 $145 $307
Assuming no redemption $28 $85 $145 $307
The example 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" 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
are based on fiscal 1997 historical expenses, except for Class B of the
Capital Accumulation Fund and the New Vision Small Cap Fund. Management fees
are paid by the Funds to the Advisor for managing the Fund's investments and
business affairs. Management fees include the subadvisory fees paid by Calvert
Asset Management Company, Inc. (the "Advisor") to the various subadvisors and
the administrative service fee paid to Calvert Administrative Services
Company. Management Fees have been restated to reflect expenses anticipated in
the current fiscal year. (See "Management of the Fund") The Management fees
for the Capital Accumulation Fund are subject to a performance adjustment
which could cause the fee to be as high as 0.95% or as low as 0.65%, depending
on performance. The Funds incur Other Expenses for maintaining shareholder
records, furnishing shareholder statements and reports, and other services.
Management Fees and Other Expenses have already been reflected in the Funds'
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 Funds. The
respective Investment Advisory Agreements provide 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 Funds' Rule 12b-1 fees include an asset-based sales charge. Thus,
long-term shareholders in each 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. In addition to
the compensation itemized above (sales charge and Rule 12b-1 service and
distribution fees), certain broker/dealers and/or their salespersons may
receive certain compensation for the sale and distribution of the securities
or for services to the Funds. See the SAI, "Method of Distribution."
<PAGE>
FINANCIAL HIGHLIGHTS
The following table provides information about the financial history of the
Funds' Class A and C shares. It expresses the information in terms of a single
share outstanding for the Fund throughout each period. No Class B Shares were
outstanding during the periods presented. The table has been audited by
Coopers & Lybrand, L.L.P., independent accountants, whose report on the period
from the Funds' commencement of operation through September 30, 1997 is
included in the Annual Reports to Shareholders for each of the respective
periods presented. The table should be read in conjunction with the financial
statements and their related notes. The Annual Report to Shareholders is
incorporated by reference into the Statement of Additional Information.
Class A Shares
From Oct. 31,
Year Ended September 30, 1994
(Inception)
1997 1996 to Sept. 30,
1995
Capital Accumulation Fund
Net asset value, beginning of period $22.55 $21.48 $15.00
Income from investment operations
Net investment income (loss) (.25) (.24) (.11)
Net realized and unrealized gain (loss) 4.91 1.88 6.61
Total from investment operations 4.66 1.64 6.50
Distributions from
Net investment income - - (.02)
Net realized gains - (.57) -
Total Distributions - (.57) (.02)
Total increase (decrease) in
net asset value 4.66 1.07 6.48
Net asset value, ending $27.21 $22.55 $21.48
Total return4 20.67% 7.92% 43.40%
Ratio to average net assets:
Net investment income (loss) (1.09%) (1.56%) (1.55%)(a)
Total expenses5 1.91% 2.16% 2.35%(a)
Net expenses 1.85% 1.98% 2.06%(a)
Expenses reimbursed - - .05%(a)
Portfolio turnover 126% 114% 95%
Average commission rate paid $.0530 $.0563 $-
Net assets, ending (in thousands) $54,751 $39,834 $16,111
Number of shares outstanding,
ending (in thousands) 2,012 1,767 750
4 Total return is not annualized and does not reflect deduction of Class A
front-end sales charges.
5 This ratio reflects total expenses before reduction for fees paid
indirectly; such reductions are included in the ratio of net expenses.
(a) Annualized
Class C Shares
From October
31,
Year Ended September 30, 1994
(Inception)
1997 1996 to Sept. 30,
1995
Capital Accumulation Fund
Net asset value, beginning of period $22.34 $21.55 $15.00
Income from investment operations
Net investment income (loss) (.47) (.55) (.15)
Net realized and unrealized gain (loss) 4.77 1.91 6.70
Total from investment operations 4.30 1.36 6.55
Distributions from
Net investment income - - -
Net realized gains - (.57) -
Total Distributions - (.57) -
Total increase (decrease) in
net asset value 4.30 .79 6.55
Net asset value, ending $26.64 $22.34 $21.55
Total return6 19.25% 6.56% 43.67%
Ratio to average net assets:
Net investment income (loss) (2.30%) (2.82%) (3.13%)(a)
Total expenses7 3.11% 3.42% 3.79%(a)
Net expenses 3.05% 3.24% 3.50%(a)
Expenses reimbursed - - 2.79%(a)
Portfolio turnover 126% 114% 95%
Average commission rate paid $.0530 $.0563 $-
Net assets, ending (in thousands) $4,184 $3,164 $1,992
Number of shares outstanding,
ending (in thousands) 157 142 92
Class A Shares
From January 31, 1997
(inception) to
Sept. 30, 1997
New Vision Small Cap Fund
Net asset value, beginning of period $15.00
Income from investment operations
Net investment income (loss) (.05)
Net realized and unrealized gain (loss) .70
Total from investment operations .65
Distributions from
Net investment income -
Net realized gains -
Total Distributions -
Total increase (decrease) in
net asset value .65
Net asset value, ending $15.65
Total return6 4.33%
Ratio to average net assets:
Net investment income (loss) (.71%)(a)
Total expenses7 1.36%(a)
Net expenses .90%(a)
Expenses reimbursed 3.36%(a)
Portfolio turnover 196%
Average commission rate paid $.0488
Net assets, ending (in thousands) $3,260
Number of shares outstanding, 208
ending (in thousands)
6 Total return is not annualized and does not reflect deduction of Class A
front-end sales charges.
7 This ratio reflects total expenses before reduction for fees paid
indirectly; such reductions are included in the ratio of net expenses.
(a) Annualized
<PAGE>
Class C Shares
From January 31, 1997
(inception) to
September
30, 1997
New Vision Small Cap Fund
Net asset value, beginning of period $15.00
Income from investment operations
Net investment income (loss) (.10)
Net realized and unrealized gain (loss) .72
Total from investment operations .62
Distributions from
Net investment income -
Net realized gains -
Total Distributions -
Total increase (decrease) in
net asset value .62
Net asset value, ending $15.62
Total return6 4.13%
Ratio to average net assets:
Net investment income (loss) (.95%)(a)
Total expenses7 1.47%(a)
Net expenses 1.15%(a)
Expenses reimbursed 9.44%(a)
Portfolio turnover 196%
Average commission rate paid $.0488
Net assets, ending (in thousands) $318
Number of shares outstanding,
ending (in thousands) 20
6 Total return is not annualized and does not reflect deduction of Class A
front-end sales charges.
7 This ratio reflects total expenses before reduction for fees paid
indirectly; such reductions are included in the ratio of net expenses.
(a) Annualized
<PAGE>
INVESTMENT OBJECTIVE AND POLICIES
Capital Accumulation Fund
The Capital Accumulation Fund seeks to provide long-term capital appreciation
by investing, under normal market conditions, at least 65% of its assets in
the equity securities of mid-sized companies. It invests primarily in a
nondiversified portfolio of the equity securities of mid-sized companies that
are undervalued but demonstrate a potential for growth. The Fund will rely on
its proprietary research to identify stocks that may have been overlooked by
analysts, investors, and the media, and which will generally be within the
range of capitalization of the S&P 400 Mid-Cap Index, but which may be larger
or smaller as deemed appropriate. Investments may also include, but are not
limited to, preferred stocks, foreign securities, convertible securities,
bonds, notes and other debt securities. The Fund may use certain futures and
options, invest in repurchase agreements, and lend its portfolio securities.
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's investment objective is not fundamental and may
be changed without shareholder approval. The Fund will notify shareholders at
least thirty days in advance of a change in the investment objective of the
Fund so that shareholders may determine whether the Fund's goals continue to
meet their own.
New Vision Small Cap Fund
The Calvert New Vision 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 equity securities of small capitalized growth companies
that have historically exhibited exceptional growth characteristics and that,
in the Advisor's opinion, have strong 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.
The New Vision Small Cap Fund pursues the objective of capital appreciation by
investing primarily in equity securities of small companies with promising
growth potential. These companies typically are developing innovative products
or services to seize emerging opportunities.
Under normal circumstances, the New Vision Small Cap Fund will invest at least
65% of its total assets in equity securities of 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 New Vision Small Cap 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. 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 of companies publicly traded in the United
States (currently those with a total market capitalization of less than $1
billion).
The New Vision Small Cap Fund 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 RISKS
Risks
A company's market capitalization is the total market value of its outstanding
equity securities. 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.
Nondiversified
There may be risks associated with the Capital Accumulation Fund being
nondiversified. Specifically, since a relatively high percentage of the assets
of the Capital Accumulation Fund may be invested in the obligations of a
limited number of issuers, the value of the shares of the Capital Accumulation
Fund may be more susceptible to any single economic, political or regulatory
event than the shares of a diversified fund would be.
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 Capital Accumulation Fund may invest up to 100% of its total assets, and
the New Vision Small Cap Fund may invest up to 35% of its total 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 currently intends to invest no more than 5% of its net assets in
noninvestment-grade debt obligations. Although the Capital Accumulation Fund
invests primarily in equity securities, it may invest in debt securities and,
although the New Vision Small Cap Fund also invests primarily in equity
securities, it may invest up to 35% of its total 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 deemed to be of comparable quality by the Advisor.
Noninvestment-grade securities are those rated below Baa or BBB, or unrated
obligations that the investment subadvisor has determined are not
investment-grade; such securities are speculative in nature, the Funds
currently intend to limit such investments to 5% of their respective net
assets. The Funds will not buy debt securities rated lower than C.
Interest-rate risk
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.
The Capital Accumulation Fund may attempt to reduce the overall risk of its
investments by using options and futures contracts. 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. The Subadvisor will make decisions whether to invest in these
instruments based on market conditions, regulatory limits and tax
considerations. If this strategy is used, the Fund may be required to cover
assets used for this purpose in a segregated account for the protection of
shareholders.
In extraordinary circumstances, the New Vision Small Cap 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.
Risks of using defensive strategies
There can be no assurance that engaging in options, futures, or any other
defensive strategy will be successful. While defensive strategies are designed
to protect the Funds from potential declines, if the Subadvisor misgauges
market values, interest rates, or other economic factors, the Funds may be
worse off than had they not employed the defensive strategy. While the
Subadvisors attempt to determine price movements and thereby prevent declines
in the value of portfolio holdings, there is a risk of imperfect or no
correlation between price movements of portfolio investments and instruments
used as part of a defensive strategy so that a loss is incurred. While
defensive strategies can reduce the risk of loss, they can also reduce the
opportunity for gain since they offset favorable price movements. The use of
defensive strategies may result in a disadvantage to the Funds if a 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 a Fund to liquidate its position because of its relative
illiquidity.
Repurchase agreements
The Funds 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 Funds 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
Funds' respective Board of Directors/Trustees. In addition, the Funds 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 Funds 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 Funds 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.
Foreign Securities and ADRs
The New Vision Small Cap Fund may invest up to 15% of its total assets in
ADRs. The Capital Accumulation Fund may also invest in ADRs, subject to the
restrictions applicable to investments in foreign securities discussed below.
By investing in ADRs rather than directly in foreign issuers' stock, the Funds
may avoid some currency and some liquidity risks. The information available
for ADRs is subject to the more uniform and more exacting accounting, auditing
and financial reporting standards of the domestic market or exchange on which
they are traded. 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.
The Capital Accumulation Fund may invest up to 25% of its assets in the
securities of foreign issuers, although it currently holds or intends to hold
no more than 5% of its assets in such securities. The Capital Accumulation
Fund may purchase foreign securities directly, on foreign markets, or those
represented by ADRs, or other receipts evidencing ownership of foreign
securities, such as International Depositary Receipts and Global Depositary
Receipts. Foreign securities may involve additional risks, including currency
fluctuations, risks relating to political or economic conditions, and the
potentially less stringent investor protection and disclosure standards of
foreign markets. These factors could make foreign investments, especially
those in developing countries, less liquid and more volatile. In addition, the
costs of foreign investing, including withholding taxes, brokerage commissions
and custodial costs are generally higher than for U.S. investments. See the
SAI for more information on investing in foreign securities.
The Funds may lend their portfolio securities.
Both Funds may lend portfolio securities to member firms of the New York Stock
Exchange and commercial banks with assets of one billion dollars or more,
although the New Vision Small Cap Fund does not intend to do so and the
Capital Accumulation Fund does not currently intend to lend more than 5% of
its portfolio securities. The advantage of such loans is that the Funds
continue 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 Funds' investment objective, policies and restrictions. 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.
Borrowing
Both Funds may borrow money from banks (and pledge its assets to secure such
borrowing) for temporary or emergency purposes, but not for leverage. Such
borrowing may not exceed one third of the value of each Fund's total assets.
High Social Impact Investments
The Funds have both adopted nonfundamental policies that permit investments
which, with respect to the Capital Accumulation Fund, may be up to three
percent, and with respect to the New Vision Small Cap Fund, may be up to one
percent, of that Fund's assets in securities that offer a rate of return below
the then-prevailing market rate and that present attractive opportunities for
furthering each 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 and credit analysis and limited maturity, investment risk can
be reduced, although there can be no assurance that losses will not occur. The
High Social Impact Investments committee of the Board of Directors/Trustees
identifies, evaluates and selects these investments, subject to ratification
by the respective Board.
Socially Responsible Investment Criteria
The Funds carefully review company policies and behavior regarding social
issues important to quality of life:
environment
employee relations
product criteria
weapons systems
nuclear energy
human rights
Once securities are determined to fall within the investment objective of a
Fund and are deemed financially viable investments, they are analyzed
according to the social criteria described below. These social screens are
applied to potential investment candidates by the Advisor in consultation with
the Subadvisors.
The following criteria may be changed by the respective Fund's Board of
Directors/Trustees without shareholder approval:
(1) The Funds avoid 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 Funds will avoid investing in nuclear power plant operators
and owners, or manufacturers of key components in the nuclear power process.
(2) The Funds will not invest in companies that are significantly
engaged in weapons production. This includes weapons systems contractors and
major nuclear weapons systems contractors.
(3) The Funds 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 that have major labor-management disputes.
(4) The Funds will not invest in companies that are significantly
involved in the manufacture of tobacco or alcohol products. The Funds will not
invest in companies that make products or offer services that, under proper
use, in the Advisor's opinion, are considered harmful.
The Advisor will seek to review companies' overseas operations consistent with
the social criteria stated above.
While the Funds may invest in companies that exhibit positive social
characteristics, it makes no explicit claims to seek out companies with such
practices.
TOTAL RETURN
The Funds may advertise total return for each class of shares. 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 a class shows
its overall change in value, including changes in share price and assuming all
of the class' dividends and capital gain distributions are reinvested. A
cumulative total return reflects the class' performance over a stated period
of time. An average annual total return ("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 return usually will include the effect of
paying any sales charge. Of course, total returns will be higher if sales
charges are not taken into account. Quotations of "return without maximum
sales load" do not reflect deduction of the sales charge. You should consider
these figures only if you qualify for a reduced sales charge, or for purposes
of comparison with comparable figures which also do not reflect sales charges,
such as mutual fund averages compiled by Lipper Analytical Services, Inc.
("Lipper"). Further information about the Funds' performance is contained in
its Annual Report to Shareholders, which may be obtained without charge.
MANAGEMENT OF THE FUND
The Funds' Board of Directors/Trustees supervise the Funds' activities and
review their contracts with companies that provide them with services.
The Capital Accumulation Fund is a series of Calvert World Values Fund, Inc.
an open-end management investment company organized as a Maryland corporation
on February 14, 1992. The other series is the International Equity Fund, a
socially-screened portfolio of equity securities from around the world.
The New Vision Small Cap 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 is the Calvert
Income Fund.
Neither Fund is required to hold annual shareholder meetings, but special
meetings may be called for certain purposes such as electing
Directors/Trustees, changing fundamental policies, or approving a management
contract. As a shareholder, you receive one vote for each share of a Fund you
own. Matters affecting classes differently, such as Distribution Plans, will
be voted on separately by class.
Calvert Asset Management Company, Inc. serves as Advisor to the Funds.
Calvert Asset Management Company, Inc. (the "Advisor") is both Funds'
investment advisor. The Advisor provides the Funds with investment supervision
and management; administrative services and office space; furnishes executive
and other personnel to the Funds; and pays the salaries and fees of all
Directors/Trustees who are affiliated persons of the Advisor. The Advisor may
also assume and pay certain advertising and promotional expenses of the Funds
and reserves the right to compensate broker/dealers in return for their
promotional or administrative services. The Funds pay all other operating
expenses as noted in the SAI.
Calvert Group is one of the largest investment management firms in the
Washington, D.C. area.
Calvert Group, Ltd., parent of the Fund's Advisor, shareholder servicing agent
and distributor, is a subsidiary of Acacia Mutual Life Insurance Company of
Washington, D.C. Calvert Group is one of the largest investment management
firms in the Washington, D.C. area. Calvert Group, Ltd. and its subsidiaries
are located at 4550 Montgomery Avenue, Suite 1000N, Bethesda, Maryland 20814.
As of December 31, 1997, Calvert Group managed and administered assets in
excess of $5.0 billion and more than 200,000 shareholder and depositor
accounts.
The Advisor receives a fee based on a percentage of the Funds' assets.
The respective Investment Advisory Agreements between the Funds and the
Advisor both provide that the Advisor is entitled to a base annual fee,
payable monthly, of 0.80% of the Capital Accumulation Fund's, and 0.90% of the
New Vision Small Cap Fund's, average daily net assets. For its services during
the fiscal year ended September 30, 1997, pursuant to the Investment Advisory
Agreements, the Advisor received an investment advisory fee of 0.80% of the
Capital Accumulation Fund's average daily net assets, and 0.90% of New Vision
Small Cap Fund's average daily net assets.
With respect to the Capital Accumulation Fund, the Advisor may earn (or have
its fee reduced by) a performance adjustment based on the extent to which
performance of the Fund exceeds or trails the Standard & Poor's 400 Mid-Cap
Index:
Performance versus the Performance Fee
S&P 400 Mid-Cap Index Adjustment
10% to less than 25% 0.01%
25% to less than 40% 0.03%
40% or more 0.05%
For its services for fiscal year 1997, the Advisor received, pursuant to the
Investment Advisory Agreement, an advisory fee of 0.80% of the Fund's average
daily net assets, which included a performance adjustment of 0.0054%. The
Advisor may in its discretion defer its fees or assume the Fund's operating
expenses.
Brown Capital Management, Inc., ("Brown Capital") is the investment subadvisor
for the Capital Accumulation Fund.
Brown Capital of 809 Cathedral Street, Baltimore, Maryland has served as
subadvisor to the Fund since November 1, 1994. Brown Capital believes that
capital can be enhanced in times of opportunity and preserved in times of
adversity without timing the market. The firm uses a bottom-up approach that
incorporates growth-adjusted price earnings. Stocks purchased are generally
undervalued and have momentum, have earnings per share growth rates greater
than the market, are more profitable than the market, and have relatively low
price-earnings ratios. Its performance index is a blended 60% Russell 1000
Growth and 40% Russell 2000.
Eddie C. Brown is founder and President of Brown Capital. He has over 22 years
of investment experience, having served as a Vice President and Portfolio
Manager for 10 years at T. Rowe Price Associates immediately prior to starting
his own firm. Mr. Brown holds an MS in Electrical Engineering from New York
University, and an MS in Business Administration from the Indiana University
School of Business. Additionally, he is a professionally-designated Chartered
Financial Analyst (CFA) and Chartered Investment Counselor.
The Investment Subadvisory Agreement between the Advisor provides that Brown
Capital is entitled to a base subadvisory fee of 0.25% of the Fund's average
daily net assets, paid by the Advisor out of the fee the Advisor receives from
the Fund. Brown Capital 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 index agreed on with the Advisor:
Performance versus Performance Fee
the Index Adjustment
10% to less than 25% 0.02%
25% to less than 40% 0.05%
40% or more 0.10%
Payment by the Fund of a performance adjustment will be conditioned on: (1)
the performance of the Fund as a whole having exceeded the S&P 400 Mid-Cap
Index; and (2) payment of the performance adjustment not causing the Fund's
performance to fall below the S&P 400 Mid-Cap Index. The performance
adjustment will be paid by the Fund to the Advisor, which will then pass it on
to the Subadvisor.
Awad & Associates ("AWAD") is the investment subadvisor to the New Vision
Small Cap Fund.
AWAD's principal business office is located at 477 Madison Avenue, New York,
New York 10022. As of June 30, 1997, AWAD had $724 million in assets under
management. AWAD adheres to a bottom-up, earnings-driven discipline with
emphasis on internal fundamental research, specializing in small
capitalization stocks, focusing on growth at a reasonable [value] price
approach to stock selection. AWAD's main objectives in asset management are to
protect the investor's capital, generate capital appreciation substantially in
excess of inflation and reduced-risk returns and provide returns in excess of
applicable stock and bond indices. All portfolio investments are regularly
scrutinized to provide a substantial risk/return benefit and to ensure that
portfolios are properly positioned relative to the Fund's investment
objectives.
Since October 1, 1997, the New Vision Small Cap Fund has been managed by a
team of investment professionals from AWAD. The senior investment officer is
James D. Awad. Mr. Awad has been in the investment business since 1965,
focusing on research and portfolio management. Prior to forming AWAD, he was
President of BMI Capital, a successful money management firm he founded. In
addition, he has managed assets at Neuberger & Berman, Channing Management and
First Investment Corp. Mr. Awad has earned an MBA from Harvard Business School
and a BS Cum Laude from Washington & Lee University.
Dennison T. Veru is President of AWAD. Mr. Veru joined AWAD in 1992 coming
from Smith Barney Harris Upham where he was Senior Vice President of the
firm's Whiffletree Capital Management division specializing in small and medium
capitalization stocks. From 1988 through 1990, he was a Vice President of
Broad Street Investment Management. Prior to that, he was an Assistant Vice
President at Drexel Burnham Lambert. Mr. Veru is a graduate of Franklin and
Marshall College.
The Investment Subadvisory Agreement between the Advisor and AWAD provides
that AWAD is entitled to a base subadvisory fee of 0.40% of the Fund's average
daily net assets managed by AWAD. AWAD's fee is paid by the Advisor out of the
fee the Advisor receives from the Fund.
The Funds have obtained an exemptive order from the Securities and Exchange
Commission to permit them, pursuant to approval by the Board of
Directors/Trustees, to enter into and materially amend contracts with a
Subadvisor without shareholder approval. See "Investment Advisor and
Subadvisor" in the SAI for further details.
Calvert Administrative Services Company provides administrative services for
the Fund.
Calvert Administrative Services Company ("CASC"), an affiliate of the Advisor,
provides certain administrative services to the Fund, 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, payable monthly, from both Funds
of 0.10% of the respective Fund's average daily net assets.
Calvert Distributors, Inc. serves as underwriter to market the Funds' shares.
Calvert Distributors, Inc. ("CDI") is both Funds' principal underwriter and
distributor. Under the terms of its underwriting agreement with the Funds, CDI
markets and distributes the Funds' 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 shareholder servicing agent for each
Fund. National Financial Data Services, Inc. ("NFDS"), 1004 Baltimore, Kansas
City, Missouri, 64105, is the transfer and dividend disbursing agent for each
Fund.
SHAREHOLDER GUIDE
HOW TO OPEN AN ACCOUNT
Getting Started
Regardless of the investment option you choose (see below), the enclosed
application must be completed and signed for each new account. When multiple
classes of shares are offered, please specify which class you wish to
purchase. Additional documents may be required for corporations, associations
and certain fiduciaries, & for investments in Calvert's tax-deferred
retirement plans. For more information about account options mentioned below,
contact your broker or our shareholder services department at 800-368-2748.
HOW TO BUY SHARES
(BE SURE TO SPECIFY WHICH CLASS YOU ARE BUYING)
New Accounts Additional Investments
$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
PO Box 419544 PO Box 419739
Kansas City, MO Kansas City, MO
64141-6544 64141-6739
By Registered, CALVERT GROUP CALVERT GROUP
Certified, or C/O NFDS, 6TH FLOOR C/O NFDS, 6TH FLOOR
Overnight Mail 1004 BALTIMORE 1004 BALTIMORE
Kansas City, MO Kansas City, MO
64105-1807 64105-1807
At the Calvert Visit the Calvert Office to make investments by check.
Office See the back cover page for the address.
Each Fund offers its shareholders three 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 B Shares - Back-End Load Option
Class B shares are sold without a sales charge at the time of purchase, but
are subject to a deferred sales charge if they are redeemed within six
calendar years after purchase. Class B shares will automatically convert to
Class A shares at the end of eight calendar years after purchase.
Class C shares - Level Load Option
Class C shares are sold without a front-end sales charge at the time of
purchase. They are subject to a deferred sales charge if they are redeemed
within one year after purchase.
Class B and C shares have higher expenses than Class A shares.
Each Fund bears some of the costs of selling its shares under Distribution
Plans adopted pursuant to Rule 12b-1 under the 1940 Act. Payments under the
Class A Distribution Plan are limited to up to 0.35% with respect to the
Capital Accumulation Fund, and up to 0.25% with respect to the New Vision
Small Cap Fund, annually of the average daily net asset value of Class A
shares, while payments under Class B and C Distribution Plan are 1.00% of the
average daily net assets attributable to their respective classes of each Fund.
Considerations for deciding which class of shares to buy.
Income distributions for Class A shares will probably be higher than those for
Class B and 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. The Funds will not normally accept any purchase of Class B shares in
the amount of $250,000 or more.
Class A Shares
Class A shares are offered at net asset value ("NAV") plus a front-end sales
charge calculated as follows:
Allowed
As a % of As a % of to Brokers as a
Amount of Offering Net Amt. % of Offering
Investment Price Invested Price
Less than $50,000 4.75% 4.99% 4.00%
$50,000 but less than $100,000 3.75% 3.90% 3.00%
$100,000 but less than $250,000 2.75% 2.83% 2.25%
$250,000 but less than $500,000 1.75% 1.78% 1.25%
$500,000 but less than $1,000,000 1.00% 1.01% 0.80%
$1,000,000 and over 0.00% 0.00% 0.00%*
* CDI may pay the dealer a finder's fee of up to 0.50% of the amount of
purchase on purchases of over $1 million. 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 dealers with whom it has dealer
agreements, CDI may reallow up to the full applicable sales charge. Dealers to
whom 90% or more of the entire sales charge is reallowed may be deemed to be
underwriters under the Securities Act of 1933.
In addition to any sales charge reallowance or finder's fee, your
broker/dealer, or other financial service firm through which your account is
held, currently will be paid periodic service fees at an annual rate of up to
0.25% of the average daily net asset value of Class A shares held in accounts
maintained by that firm.
Class A Distribution Plan
Each Fund has adopted a Distribution Plan with respect to its Class A shares
(the "Class A Distribution Plan"), which provides for payments at a maximum
rate of 0.35% with respect to the Capital Accumulation Fund, and 0.25% with
respect to the New Vision Small Cap Fund, 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 to pay CDI
for its marketing and distribution expenses, including, but not limited to,
preparation of advertising and sales literature and the printing and mailing
of prospectuses to prospective investors. During the fiscal year ended
September 30, 1997, Class A Distribution Plan expenses for the Capital
Accumulation Fund were 0.35% and for the New Vision Small Cap Fund were 0.25%.
Class B Shares
Class B shares are offered at net asset value, without a front-end sales
charge. With certain exceptions, the Portfolio may impose a deferred sales
charge at the time of redemption as follows:
Contingent Deferred Sales
Charge As A Percentage Of
Redemption During Net Asset Value At Redemption
1st Year Since Purchase 5%
2nd Year Since Purchase 4%
3rd Year Since Purchase 4%
4th Year Since Purchase 3%
5th Year Since Purchase 2%
6th Year Since Purchase 1%
7th Year Since Purchase and Thereafter None
No deferred sales charge is imposed on amounts redeemed after six years from
purchase. If imposed, the deferred sales charge is deducted from the
redemption proceeds otherwise payable to you. The deferred sales charge is
retained by CDI. See "Calculation of Contingent Deferred Sales Charges and
Waiver of Sales Charges" below.
Class B shares that have been outstanding for eight calendar years will
automatically convert to Class A shares, which are subject to a lower
Distribution Plan charge, without imposition of a front-end sales charge or
exchange fee. The Class B shares so converted will no longer be subject to the
higher expenses borne by Class B shares. Because the net asset value per share
of the Class A shares may be higher or lower than that of the Class B shares
at the time of conversion, although the dollar value will be the same, a
shareholder may receive more or less Class A shares than the number of Class B
shares converted. Under current law, it is the Advisor's opinion that such a
conversion will not constitute a taxable event under federal income tax law.
In the event that this ceases to be the case, the Board of Trustees will
consider what action, if any, is appropriate and in the best interests of the
Class B shareholders.
Class B Distribution Plan
The Portfolio has adopted a Distribution Plan with respect to its Class B
shares (the "Class B Distribution Plan"), which provides for payments at an
annual rate of up to 1.00% of the average daily net asset value of Class B
shares, to pay expenses of the distribution of Class B shares. Amounts paid by
the Portfolio under the Class B Distribution Plan are currently used by CDI to
pay others (1) a commission at the time of purchase of 4% of the value of each
share sold; and/or (2) service fees at an annual rate of 0.25% of the average
daily net asset value of shares sold by such others, beginning in the 13th
month after purchase.
Class C Shares
Class C shares are not available through all dealers. Class C shares are
offered at net asset value, without a front-end sales charge. With certain
exceptions, the Portfolio will impose a deferred sales charge of 1.00% on
shares redeemed during the first year after purchase. If imposed, the deferred
sales charge is deducted from the redemption proceeds otherwise payable to
you. The deferred sales charge is retained by CDI. See "Calculation of
Contingent Deferred Sales Charges and Waiver of Sales Charges" below
Class C Distribution Plan
Each Fund has adopted a Distribution Plan with respect to its Class C shares
(the "Class C Distribution Plan"), which provides for payments at an annual
rate of up to 1.00% of the average daily net asset value of Class C shares, to
pay expenses of the distribution and servicing of Class C shares. Amounts paid
by the Fund under the Class C Distribution Plan are currently used by CDI to
pay broker/dealers and other selling firms (1) a commission at the time of
purchase of 1.00% of the value of each share sold, and (2) beginning in the
13th month after purchase, quarterly compensation at an annual rate of up to
0.75%, plus a service fee of up to 0.25%, of the average daily net asset value
of each share sold by such others. During the fiscal year ended September 30,
1997, Class C Distribution Plan expenses for the Capital Accumulation Fund
were 1.00% of the average daily net assets. For the period ended September 30,
1997, distribution expenses for the New Vision Small Cap Fund were 1.00% of
the average daily net assets.
Calculation of Contingent Deferred Sales Charge and Waiver of Sales Charges
Class B and Class C shares that are redeemed will not be subject to a
contingent deferred charge to the extent that the value of such shares
represents (1) reinvestment of dividends or capital gains distributions, (2)
shares held more than six years (more than one year for Class C) or (3)
capital appreciation of shares redeemed. Any contingent deferred sales charge
is imposed on the net asset value of the shares at the time of redemption or
purchase, whichever is lower. Upon request for redemption, shares not subject
to the contingent deferred sales charge will be redeemed first. Thereafter,
shares held the longest will be the first to be redeemed.
The contingent deferred sales charge on Class B Shares will be waived in the
following circumstances: (1) redemption upon the death or disability of the
shareholder, plan participant, or beneficiary ("disability" shall mean a total
disability as evidenced by a determination by the federal Social Security
Administration); (2) minimum required distributions from retirement plan
accounts for shareholders 70 1/2 and older (with the maximum amount subject to
this waiver being based only upon the shareholder's Calvert retirement
accounts); (3) return of an excess contribution or deferral amounts, pursuant
to sections 408(d)(4) or (5), 401(k)(8), or 402)(g)(2), or 401(m)(6) of the
Internal Revenue Code; (4) involuntary redemptions of accounts under
procedures set forth by the Fund's Board of Trustees; (5) a single annual
withdrawal under a systematic withdrawal plan of up to 10% per year of the
shareholder's account balance (minimum account balance $50,000 to establish).
Arrangements with Broker/dealers and Others
CDI may also pay additional concessions, including non-cash promotional
incentives, such as merchandise or trips, to dealers employing registered
representatives who have sold or are expected to sell a minimum dollar amount
of shares of the Fund and/or shares of other Funds underwritten by CDI. CDI
may make expense reimbursements for special training of a dealer's registered
representatives, advertising or equipment, or to defray the expenses of sales
contests. CDI may receive reimbursement of eligible marketing and distribution
expenses from 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.
WHEN YOUR ACCOUNT WILL BE CREDITED
Your purchase will be processed at the next NAV calculated after your order is
received and accepted. All of your purchases must be made in US dollars and
checks must be drawn on US banks. No cash will be accepted. The Funds reserve
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 bank, your
purchase will be canceled and you will be charged a $10 fee plus costs
incurred by the Funds.
When you purchase by check or with Calvert Money Controller, the purchase will
be on hold for up to 10 business days from the date of receipt. During the
hold period, any redemptions will be held until the transfer agent is
reasonably satisfied that the purchase payment has been collected. To avoid
this hold period, you can wire federal funds from your bank, which may charge
you a fee. As a convenience, check purchases can be received at Calvert's
offices for overnight mail delivery to the Transfer Agent and will be credited
the next business day, or upon receipt. 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 CDI may enter confirmed purchase orders on behalf of
customers by phone, with payment to follow within a certain number of days of
the order as specified by the program. If payment is not received in the time
specified, the financial institution or broker/dealer could be held liable for
resulting fees or losses.
TAX-SAVING RETIREMENT PLANS
Calvert Group also offers its shareholders several tax-deferred retirement
plans that allow you to invest for retirement and shelter your investment
income from current taxes. Please contact us if you wish to obtain more
information about the investment options listed below. Minimum deposits may
differ from those listed in the "How to Buy Shares" chart. Also, reduced sales
charges may apply (see Exhibit A to this prospectus).
Traditional and Roth 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, corporations and their
employees, and certain tax-exempt organizations.
Simple IRAs and Simplified Employee Pension Plan (SEP IRAs): 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.
OTHER CALVERT GROUP FEATURES
CALVERT INFORMATION NETWORK
For 24 hour performance and account information call 800-368-2745 or visit
http://www.calvertgroup.com
You can obtain current performance and pricing information, verify account
balances, and authorize certain transactions with the convenience of one phone
call, 24 hours a day.
ACCOUNT SERVICES
By signing up for services when you open your account, you avoid having to
obtain a signature guarantee. If you wish to add services at a later date, a
signature guarantee to verify your signature may be obtained from any bank,
trust company and savings and loan association, credit union, broker/dealer
firm or member of a domestic stock exchange. A notary public cannot provide a
signature guarantee.
CALVERT MONEY CONTROLLER
Calvert Money Controller allows you to purchase or sell shares anytime from
anywhere with ease, without the time delay of mailing a check or the added
expense of wiring funds. Use this service to transfer up to $300,000
electronically. Allow one or two business days after you place your request
for the transfer to take place. Money transferred to purchase new shares will
be subject to a hold of up to 10 business days before redemption requests will
be honored. Transaction requests must be received by 4 p.m. ET. You may
request this service on your initial account application.
TELEPHONE TRANSACTIONS
You may purchase, redeem, or exchange shares, wire funds and use Calvert Money
Controller by telephone if you have pre-authorized service instructions. You
receive this service automatically when you open your account unless you elect
otherwise. For our mutual protection, the Fund, the shareholder servicing
agent and their affiliates use precautions such as verifying shareholder
identity and recording telephone calls to confirm instructions given by phone.
A confirmation statement is sent for most transactions; please review this
statement and verify the accuracy of your transaction immediately.
EXCHANGES
Calvert Group offers a wide variety of investment options that includes common
stock funds, tax-exempt and corporate bond funds, and money market funds (call
your broker or Calvert representative for more information). We make it easy
for you to purchase shares in other funds should your investment goals change.
The exchange privilege offers flexibility, by allowing you to exchange shares
on which you have already paid a sales charge from one mutual fund to another
at no additional charge.
Complete and sign an account application, taking care to register your new
account in the same name and taxpayer identification number as your existing
Calvert account(s). Exchange instructions may then be given by telephone if
telephone redemptions have been authorized and the shares are not in
certificate form.
Before you make an exchange, please note the following:
Each exchange represents the sale of shares of one portfolio and the
purchase of shares of another. Therefore, you could realize a taxable gain or
loss.
No CDSC is imposed on exchanges of shares subject to a CDSC at the
time of the exchange. The applicable CDSC is imposed at the time the shares
acquired by the exchange are redeemed.
Shareholders (and those managing multiple accounts) who make two
purchases and two exchange redemptions of shares of the same Portfolio during
a six months period will be given written notice and may be prohibited from
placing additional investments. This policy does not prohibit a shareholder
from redeeming shares of any Portfolio, and does not apply to trades solely
among money market funds.
The Fund reserves the right to terminate or modify the exchange
privilege with 60 days written notice. For purposes of the exchange privilege,
the Funds are related to Summit Cash Reserves Fund by investment and investor
services.
COMBINED GENERAL MAILINGS
Join is in our efforts to conserve paper and save on postage
If you have multiple accounts with Calvert, you may receive combined mailings
of shareholder information, such as account statements, confirmations of
transactions, prospectuses and semi-annual and annual reports.
SPECIAL SERVICES AND CHARGES
The Funds pay for shareholder services but not for special services that are
required by a few shareholders, such as a request for a historical transcript
of an account or a stop payment on a draft. You may be required to pay a fee
for these special services; for example, the fee for stop payments is $25.
If you are purchasing shares through a program of services offered by a
broker/dealer or financial institution, you should read the program materials
in conjunction with this Prospectus. Certain features may be modified in these
programs, and administrative charges may be imposed by the broker/dealer or
financial institution for the services rendered.
MINIMUM ACCOUNT BALANCE IS $1,000 per Fund, per Class
Please maintain a balance in each of your Fund accounts of at least $1,000. If
the balance in your account falls below the $1,000 minimum during a month, the
account may be closed and the proceeds mailed to the address of record. You
will receive a notice that your account is below the minimum, and will be
closed if the balance is not brought up to the required minimum amount within
30 days.
SYSTEMATIC CHECK REDEMPTIONS
If you maintain an account with $10,000 or more, you may have up to two (2)
redemption checks for $100 or more sent to you on the 15th of each month,
simply by sending a letter with all the information, including your account
numbers, and the dollar amount. If you would like a regular check mailed to
another person or place, your letter must be signature guaranteed. Unless they
otherwise qualify for a waiver, Class B or Class C shares redeemed by
Systematic Check Redemption will be subject to the Contingent Deferred Sales
Charge.
DIVIDENDS, CAPITAL GAINS AND TAXES
Each year, both Funds distribute substantially all of their respective net
investment income to their shareholders.
Dividends from a Fund's net investment income are declared and paid annually.
Net investment income consists of interest income, net short-term capital
gains, if any, and dividends declared and paid on investments, less expenses.
Distributions of net short-term capital gains (treated as dividends for tax
purposes) and net long-term capital gains, if any, are normally paid once a
year; however, the Funds do not anticipate making any such distributions
unless available capital loss carryovers have been used or have expired.
Dividend and distribution payments will vary between classes; dividend
payments are anticipated to be generally higher for Class A shares.
Dividend payment options (available monthly or quarterly)
Dividends and any distributions are automatically reinvested in the same
Portfolio at NAV (no sales charge), unless you elect to have the dividends of
$10 or more paid in cash (by check or by Calvert Money Controller). Dividends
and distributions from any Calvert Group Fund or Portfolio may be
automatically invested in an identically registered account in any other
Calvert Group Fund at NAV. If reinvested in the same Fund account, new shares
will be purchased at NAV on the reinvestment date, which is generally 1 to 3
days prior to the payment date. You must notify the Funds in writing to change
your payment options. If you elect to have dividends and/or distributions paid
in cash, and the US Postal Service cannot deliver the check, or if it remains
uncashed for an extended period, it, as well as future dividends and
distributions, will be reinvested in additional shares. No dividends will
accrue on amounts represented by uncashed distribution or redemption checks.
Buying a Dividend
At the time of purchase, the share price of your Fund may reflect
undistributed income, capital gains or unrealized appreciation of securities.
Any income or capital gains from these amounts which are later distributed to
you are fully taxable. On the record date for a distribution, share value is
reduced by the amount of the distribution. If you buy shares just before the
record date ("buying a dividend") you will pay the full price for the shares
and then receive a portion of the price back as a taxable distribution.
Federal Taxes
In January, your Fund will mail you Form 1099-DIV indicating the federal tax
status of dividends and any capital gain distributions paid to you during the
past year. Generally, dividends and distributions are taxable in the year they
are paid. However, any dividends and distributions paid in January but
declared during the prior three months are taxable in the year declared.
Dividends and distributions are taxable to you regardless of whether they are
taken in cash or reinvested. Dividends, including short-term capital gains,
are taxable as ordinary income. Distributions from long-term capital gains are
taxable as long-term capital gains, regardless of how long you have owned
shares.
You may realize a capital gain or loss when you sell or exchange shares. This
capital gain or loss will be short- or long-term, depending on how long you
have owned the shares which were sold. In January, the Portfolios will mail
you Form 1099-B indicating the total amount of all sales, including exchanges.
You should keep your annual year-end account statements to determine the cost
(basis) of the shares to report on your tax returns.
Other Tax Information
In addition to federal taxes, you may be subject to state or local taxes on
your investment, depending on the laws in your area. You will be notified to
the extent, if any, that dividends reflect interest received from US
government securities. Such dividends may be exempt from certain state income
taxes.
Taxpayer Identification Number
If we do not have your correct Social Security or Taxpayer Identification
Number ("TIN") and a signed certified application or Form W-9, Federal law
requires us to withhold 31% of your dividends, and possibly 31% of certain
redemptions. In addition, you may be subject to a fine. You will also be
prohibited from opening another account by exchange. If this TIN information
is not received within 60 days after your account is established, your account
may be redeemed (closed) at the current NAV on the date of redemption. Calvert
Group reserves the right to reject any new account or any purchase order for
failure to supply a certified TIN.
HOW TO SELL SHARES
You may redeem all or a portion of your shares on any business day. Your
shares will be redeemed at the next NAV calculated after your redemption
request is received (less any applicable CDSC). The proceeds will normally be
sent to you on the next business day, but if making immediate payment could
adversely affect the Funds, it may take up to seven (7) days. Calvert Money
Controller redemptions generally will be credited to your bank account on the
second business day after your phone call. Remember, investments made by check
or Calvert Money Controller may be subject to a hold before shares can be
redeemed. 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.
Net Asset Value - "NAV"
NAV refers to the worth of one share. NAV is computed by adding the value of
all portfolio holdings, plus other assets, deducting liabilities and then
dividing the result by the number of shares outstanding. For Portfolios with
more than one class of shares, the NAVs of each class will vary daily
depending on the number of shares outstanding for each class.
Portfolio securities and other assets are valued based on market quotations,
except that securities maturing within 60 days are valued at amortized cost.
Money Market securities are valued according to the "amortized cost" method,
which is intended to stabilize the NAV at $1 per share. If quotations are not
available, securities are valued by a method that the particular Fund's Board
of Trustees/Directors believes accurately reflects fair value.
The NAV is calculated at the close of each business day, which coincides with
the closing of the regular session of the New York Stock Exchange (normally 4
p.m. ET). Both Funds are open for business each day the New York Stock
Exchange is open. All purchases will be confirmed and credited to your account
in full and fractional shares (rounded to the nearest 1/1000 of a share).
Follow these suggestions to ensure timely processing of your redemption request
BY TELEPHONE
You may redeem shares from your account by telephone and have your money
mailed to your address of record or electronically transferred or wired to a
bank you have previously authorized. A charge of $5 may be imposed on wire
transfers of less than $1,000.
WRITTEN REQUESTS
Calvert Group, P.O. Box 419544, Kansas City, MO 64141-6544
Your letter should include your account number and fund and the number of
shares or the dollar amount you are redeeming. Please provide a daytime
telephone number, if possible, for us to call if we have questions. If the
money is being sent to a new bank, person, or address other than the address
of record, your letter must be signature guaranteed.
The following requirements may also apply to your account:
Type of Registration Requirements
Corporations, Letter of instruction and corporate resolution,
signed
by person(s) authorized to act on the account,
accompanied by signature guarantee(s).
Associations Letter of instruction signed by the Trustee(s)
Trusts (as Trustees), with a signature guarantee.
If the Trustee's name is not registered on your
account, provide a copy of the trust document,
certified within the last 60 days.)
<PAGE>
Exhibit A
REDUCED SALES CHARGES (Class A Only)
You may qualify for a reduced sales charge through several purchase plans
available. You must notify the Funds at the time of purchase to take advantage
of the reduced sales charge.
Right of Accumulation
The sales charge breakpoints are 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 SAI.
Group Purchases
If you are a member of a qualified group, you may purchase shares 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: has been in existence for more than six
months, has a purpose other than acquiring shares at a discount, and satisfies
uniform criteria which enable CDI and brokers offering shares to realize
economies of scale in distributing such shares.
A qualified group must have more than 10 members, must be available to arrange
for group meetings between representatives of CDI or brokers distributing
shares, must agree to include sales and other materials related to the Funds
in its publications and mailings to members at reduced or no cost to CDI or
brokers.
Pension plans may not qualify participants for group purchases; however, such
plans may qualify for reduced sales charges under a separate provision (see
below). Members of a group are not eligible for a Letter of Intent.
Retirement Plans Under Section 457, Section 403(b)(7), or Section 401(k)
There is no sales charge on shares purchased for the benefit of a retirement
plan under section 457 of the Internal Revenue Code of 1986, as amended
("Code"), or for a plan qualifying under section 403(b) or 401(k) of the Code
if, at the time of purchase, (i) Calvert Group has been notified in writing
that the 403(b) or 401(k) plan has at least 200 eligible employees and is not
sponsored by a K-12 school district, or (ii) the cost or current value of
shares a 401(k) plan has in Calvert Group of Funds (except money market funds)
is at least $1 million.
Neither the Funds, nor 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 or portfolio of the Calvert
Group of Funds sold to (i) current or retired Directors, Trustees, or Officers
of the Calvert Group of Funds, employees of Calvert Group, Ltd. and its
affiliates, or their family members; (ii) CSIF Advisory Council Members,
directors, officers, and employees of any subadvisor for the Calvert Group of
Funds, employees of broker/dealers distributing the Fund's shares and
immediate family members of the Council, subadvisor, or broker/dealer; (iii)
Purchases made through a Registered Investment Advisor, (iv) Trust departments
of banks or savings institutions for trust clients of such bank or
institution, (v) Purchases through a broker maintaining an omnibus account
with the fund or portfolio, provided the purchases are made by (a) investment
advisors or financial planners placing trades for their own accounts (or the
accounts of their clients) and who charge a management, consulting, or other
fee for their services; or (b) clients of such investment advisors or
financial planners who place trades for their own accounts if such accounts
are linked to the master account of such investment advisor or financial
planner on the books and records of the broker or agent; or (c) retirement and
deferred compensation plans and trusts, including, but not limited to, those
defined in section 401(a) or section 403(b) of the I.R.C., and "rabbi trusts."
Dividends and Capital Gain Distributions from other Calvert Group Funds
You may prearrange to have your dividends and capital gain distributions from
another Calvert Group Fund automatically invested in another account with no
additional sales charge.
Purchases made at NAV
Except for money market funds, if you make a purchase at NAV, you may exchange
that amount to another Calvert Group Fund at no additional sales charge.
Reinstatement Privilege
If you redeem shares and then within 30 days decide to reinvest in the same
Fund, you may do so at the net asset value next computed after the
reinvestment order is received, without a sales charge. You may use the
reinstatement privilege only once. The Funds reserve the right to modify or
eliminate this privilege.
<PAGE>
Prospectus
May 1, 1998
Calvert Capital Accumulation Fund
Calvert New Vision Small Cap Fund
To Open an Account:
800-368-2748
Performance and Prices:
Calvert Information Network
24 hours, 7 days a week
800-368-2745
Service for Existing Account:
Shareholders 800-368-2745
Brokers 800-368-2746
TDD for Hearing-Impaired:
800-541-1524
Branch Office:
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
Registered, Certified or
Overnight Mail:
Calvert Group
c/o NFDS, 6th Floor
1004 Baltimore
Kansas City, MO 64105
Calvert Group Web-Site
Address: http://www.calvertgroup.com
PRINCIPAL UNDERWRITER
Calvert Distributors, Inc.
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
<PAGE>
The Calvert Fund
Calvert New Vision Small Cap Fund
Statement of Additional Information
May 1, 1998
INVESTMENT ADVISOR
Calvert Asset Management Company, Inc.
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
SHAREHOLDER SERVICE TRANSFER AGENT
Calvert Shareholder Services, Inc. National Financial Data Services, Inc.
4550 Montgomery Avenue 1004 Baltimore
Suite 1000N 6th Floor
Bethesda, Maryland 20814 Kansas City, Missouri 64105
PRINCIPAL UNDERWRITER INDEPENDENT ACCOUNTANTS
Calvert Distributors, Inc. Coopers & Lybrand, L.L.P.
4550 Montgomery Avenue 250 West Pratt Street
Suite 1000N Baltimore, Maryland 21201
Bethesda, Maryland 20814
TABLE OF CONTENTS
Investment Objective and Policies 1
Investment Restrictions 3
Dividends, Distributions and Taxes 4
Net Asset Value 5
Calculation of Total Return 5
Purchase and Redemption of Shares 6
Reduced Sales Charge (Class A) 6
Advertising 7
Trustees and Officers 7
Investment Advisor and Subadvisor 10
Method of Distribution 11
Transfer and Shareholder Servicing Agent 11
Fund Transactions 12
Independent Accountant and Custodians 12
General Information 12
Financial Statements 12
Appendix 13
Glossary of Permitted Investments 13
<PAGE>
STATEMENT OF ADDITIONAL INFORMATION-May 1, 1998
THE CALVERT FUND
CALVERT NEW VISION SMALL CAP FUND
4550 Montgomery Avenue, Bethesda, Maryland 20814
New Account (800) 368-2748 Shareholder (800) 368-2745
Information: (301) 951-4820 Services: (301) 951-4810
Broker (800) 368-2746 TDD for the Hearing-
Services: (301) 951-4850 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 May 1, 1998, which may be obtained free of
charge by writing the Fund at the above address or calling the Fund.
INVESTMENT OBJECTIVE
Calvert New Vision 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 equity securities of small companies (currently
those with a total capitalization for initial purchases of less than $1
billion at the time of the Fund's initial investment) publicly traded in the
United States. 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 Trustees without shareholder
approval.
In seeking capital appreciation, the Fund invests primarily in equity
securities 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 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.
SPECIAL RISKS OF THE FUND'S DEFENSIVE 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 total 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. This may also impact the Fund's Board
of Trustees' ability to accurately value these securities and the Fund's
assets. 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, and any
adverse publicity and investor perceptions, whether or not based on
fundamental analysis, 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. Credit ratings evaluate the safety
of principal and interest payments, not market value risk of the securities.
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. The Subadvisor also continuously
monitors the issuers of the securities in the Fund to assure that their
financial condition continues to be adequate. 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 75% of its total assets, purchase
securities of any issuer (other than obligations of, or
guaranteed by, the United States Government, its agencies or
instrumentalities) if, as a result, more than 5% of the
value of its total assets would be invested in securities of
that issuer.
2. Concentrate 25% or more of the value of its total
assets in any one industry; provided, however, that there is
no limitation with respect to investments in obligations
issued or guaranteed by the United States Government or its
agencies and instrumentalities, and repurchase agreements
secured thereby.
3. Make loans of more than one-third of the total
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. Issue senior securities or 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. 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.
8. With respect to 75% of its total assets, invest 10%
or more of its assets in the voting securities of any one
issuer.
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 (with the exception of borrowings and
illiquid holdings) 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, Martin Luther King 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.
Net Asset Value and Offering Price Per Share
Net asset value per share
($3,259,982/208,338 shares) $15.65
Maximum sales charge, Class A
(4.75% of offering price) 0.78
Offering price per share, Class A $16.43
Class C net asset value and offering price per share
($318,234/20,368 shares) $15.62
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 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.
Return for the Funds' shares for the period from inception (January
31, 1997) to September 30, 1997, are as follows:
Class A Shares Class A Shares Class C Shares
without Total Return Total Return
Maximum Sales with Maximum
Load Sales Load
Since inception 4.33% -0.62% 4.13%
Total return, like net asset value per share, fluctuates in response
to changes in market conditions. Performance for any particular time period
should not be considered an indication of future return.
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. Certain Class B and Class C shares may be subject to a
contingent deferred sales charge which is subtracted from the redemption
proceeds (see Prospectus, "Calculation of Contingent Deferred Sales Charges
and Waiver of Sales Charges").
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 to 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 its holdings or give examples of securities that may
have been considered for inclusion in the Fund, 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, 1997). 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 Executive Vice President
for the Family Health Council, Inc. in Pittsburgh, Pennsylvania, a non-profit
corporation which provides family planning services, nutrition, maternal/child
health care, and various health screening services. Mr. Baird is a
trustee/director of each of the investment companies in the Calvert Group of
Funds, except for Calvert Variable Series, Inc., Calvert New World Fund and
Calvert World Values Fund. 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. He is also a director of
Calvert Variable Series, Inc. DOB: 10/29/35. Address: 308 East Broad Street,
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: 16 Iliahi Street,
Honolulu, Hawaii, 96817.
*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. DOD:
05/23/48. Address: 7536 Pepperell Drive, Bethesda, Maryland 20817.
PETER W. GAVIAN, CFA, Trustee. Mr. Gavian is President of Corporate
Finance of Washington, Inc. Formerly, he was a principal of Gavian De Vaux
Associates, an investment banking firm. 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, a director of Ariel Funds, and the Treasurer and
Director of Silby, Guffey, and Co., Inc., a venture capital firm. Mr. Guffey
is a trustee/director of each of the other investment companies in the Calvert
Group of Funds, except for Calvert Variable Series, Inc. and Calvert New World
Fund. DOB: 05/15/48. Address: 7205 Pomander Lane, Chevy Chase, Maryland 20815.
*BARBARA J. KRUMSIEK, President and Trustee. Ms. Krumsiek serves as
President, Chief Executive Officer and Vice Chairman of Calvert Group, Ltd.
and as an officer and director of each of its affiliated companies. She is a
director of Calvert-Sloan Advisers, L.L.C., and a trustee/director of each of
the investment companies in the Calvert Group of Funds. Prior to joining
Calvert Group, Ms. Krumsiek served as Senior Vice President of Alliance
Capital LP's Mutual Fund Division. DOB: 08/09/52.
M. CHARITO KRUVANT, Trustee. Ms. Kruvant is President and CEO of
Creative Associates International, Inc., a firm that specializes in human
resources development, information management, public affairs and private
enterprise development. She is also a director of Acacia Federal Savings Bank.
DOB: 12/08/45. Address: 5301 Wisconsin Avenue, N.W., Washington, D.C. 20015.
ARTHUR J. PUGH, Trustee. Mr. Pugh is a Director of Calvert Variable
Series, Inc., and serves as a director of Acacia Federal Savings Bank. DOB:
09/24/37. Address: 4823 Prestwick Drive, Fairfax, Virginia 22030.
*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.
*D. WAYNE SILBY, Esq., Trustee. Mr. Silby is a trustee/director of
each of the investment companies in the Calvert Group of Funds, except for
Calvert Variable Series, Inc. and Calvert New World Fund. Mr. Silby is
Executive Chairman of GroupServe, an internet company focused on community
building collaborative tools, and an officer, director and shareholder of
Silby, Guffey & Company, Inc., which serves as general partner of Calvert
Social Venture Partners ("CSVP"). CSVP is a venture capital firm investing in
socially responsible small companies. He is also a Director of Acacia Mutual
Life Insurance Company. DOB: 07/20/48. Address: 1715 18th Street, N.W.,
Washington, D.C. 20009.
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. DOB: 1/13/50.
RONALD M. WOLFSHEIMER, CPA, Treasurer. Mr. Wolfsheimer is Senior Vice
President and Chief Financial Officer of Calvert Group, Ltd. and its
subsidiaries and an officer of each of the other investment companies in the
Calvert Group of Funds. Mr. Wolfsheimer is Vice President and Treasurer of
Calvert-Sloan Advisers, L.L.C., and a director of Calvert Distributors, Inc.
DOB: 07/24/47.
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.
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.
SUSAN WALKER BENDER, Esq., Assistant Secretary. Ms. Bender is
Associate General Counsel of Calvert Group, Ltd. 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.
KATHERINE STONER, Esq., Assistant Secretary. Ms. Stoner is Associate
General Counsel of Calvert Group and an officer of each of its subsidiaries
and Calvert-Sloan Advisers, L.L.C. She is also an officer of each of the other
investment companies in the Calvert Group of Funds. DOB: 10/21/56.
LISA CROSSLEY NEWTON, Esq., Assistant Secretary and Compliance
Officer. Ms. Newton is Associate General Counsel of Calvert Group and an
officer of each of its subsidiaries and Calvert-Sloan Advisers, L.L.C. She is
also an officer of each of the other investment companies in the Calvert Group
of Funds. DOB: 12/31/61.
IVY WAFFORD DUKE, Esq., Assistant Secretary. Ms. Duke is Assistant
Counsel of Calvert Group and an officer of each of its subsidiaries and
Calvert-Sloan Advisers, L.L.C. She is also an officer of each of the other
investment companies in the Calvert Group of Funds. Prior to working at
Calvert Group, Ms. Duke was an Associate in the Investment Management Group of
the Business and Finance Department at Drinker Biddle & Reath. DOB: 09/07/68.
The address of Trustees and Officers, unless otherwise noted, is 4550
Montgomery Avenue, Suite 1000N, Bethesda, Maryland 20814. Trustees and
Officers as a group own less than 1% of the Portfolio's outstanding shares.
Trustees marked with an *, above, are "interested persons" of the Fund, under
the Investment Company Act of 1940.
Each of the above 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 and Silby and Ms. Krumsiek are among the trustees, Acacia Capital
Corporation, of which only Messrs. Blatz, Diehl and Pugh and Ms. Krumsiek are
among the directors, Calvert World Values Fund, Inc., of which only Messrs.
Guffey and Silby and Ms. Krumsiek are among the directors, and Calvert New
World Fund, Inc., of which only Ms. Krumsiek and Mr. Martini is among the
directors.
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 and Silby.
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.
Director Compensation Table
Fiscal Year 1997 Aggregate Pension or Total
Compensation Retirement Compensation
(unaudited numbers) from Registrant Benefits from Registrant
for Service Accrued as and Fund Complex
as Trustee part of paid to Trustee**
Registrant
Expenses*
Name of Trustee
Richard L. Baird, Jr. $1,779 $0 $34,450
Frank H. Blatz, Jr. $2,121 $2,121 $46,000
Frederick T. Borts $1,772 $0 $32,500
Charles E. Diehl $2,034 $2,019 $44,500
Douglas E. Feldman $1,962 $0 $32,500
Peter W. Gavian $1,997 $770 $38,500
John G. Guffey, Jr. $1,984 $0 $61,615
M. Charito Kruvant $1,779 $0 $36,250
Arthur J. Pugh $2,306 $65 $48,250
D. Wayne Silby $1,779 $0 $62,830
*Messrs. Blatz, Diehl, Gavian and Pugh have chosen to defer a portion of their
compensation. As of September 30, 1997, total deferred compensation, including
dividends and capital appreciation, was $542,400.28, $550,026.46, $132,815.21,
and $195,548.47, for each trustee, respectively.
**As of December 31, 1997. The Fund Complex consists of nine (9) registered
investment companies.
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 January 30, 1997, 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 Awad & Associates,
("Subadvisor" or "AWAD"). Pursuant to an Investment Subadvisory Agreement with
the Advisor, the Subadvisor determines investment selections for the Fund.
The Fund has received an exemptive order to permit the Fund and the
Advisor to enter into and materially amend the Investment Subadvisory
Agreement without shareholder approval. Within 90 days of the hiring of any
Subadvisor or the implementation of any proposed material changed in the
Investment Subadvisory Agreement, the Fund will furnish its shareholders
information about the new Subadvisor or Investment Subadvisory Agreement that
would be included in a proxy statement. Such information will include any
change in such disclosure caused by the addition of a new Subadvisor or any
proposed material change in the Investment Subadvisory Agreement of the Fund.
The Fund will meet this condition by providing shareholders, within 90 days of
the hiring of the Subadvisor or implementation of any material change to the
terms of an Investment Subadvisory Agreement, with an information statement to
this effect.
The 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 federal law or regulation).
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. For its services, the Advisor receives an
annual fee of 0.90% of the Fund's average daily net assets.
For fiscal year 1997, the Fund paid advisory fees of $14,100. The
Advisor may voluntarily defer its fees or assume expenses of the Fund. For
fiscal year 1997, the Advisor reimbursed the Fund $65,410 for fees and
expenses. The Advisor may recapture from (charge to) the Fund (through
December 31, 1999) for such expenses incurred, provided that such recapture
would not cause the Fund's aggregate expenses to exceed the annual expense
limit. 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 the annual expense limit, 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 0.10% 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 a distribution fee
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.
For Class B and Class C Shares, CDI receives any CDSC paid.
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, 0.25% of the Fund's
Class A average daily net assets, and 1.00% of the Fund's Class B and Class C
average daily net assets, respectively. For fiscal year 1997, Class A
Distribution Plan expenses totaled $3,390. Of the Class A Distribution Plan
expenses paid in fiscal year 1997, almost entirely all of the expenses were
used for broker/dealer compensation. During the same period, CDI received net
sales charges of $11,744. For fiscal year 1997, Class C Distribution Plan
expenses totaled $2,104. Of the Class Distribution Plan expenses paid in
fiscal year 1997, almost entirely all of the expenses were used for
broker/dealer compensation. No Class B Distribution Plan expenses were paid in
fiscal year 1997 since there were no Class B Shares outstanding.
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.
Certain broker-dealers, and/or other persons may receive compensation
from the investment advisor, underwriter, or their affiliates for the sale and
distribution of the securities or for services to the Fund. Such compensation
my include additional compensation based on assets held through that firm
beyond the regularly scheduled rates, and finder's fee payments to firms whose
representatives are responsible for soliciting a new account where the
accountholder does not choose to purchase through that firm.
TRANSFER AND SHAREHOLDER SERVICING AGENT
National Financial Data Services, Inc. ("NFDS"), a subsidiary of
State Street Bank & Trust, has been retained by the Fund to act as transfer
agent and dividend disbursing agent. These responsibilities include:
responding to certain shareholder inquiries and instructions, crediting and
debiting shareholder accounts for purchases and redemptions of Fund shares and
confirming such transactions, and daily updating of shareholder accounts to
reflect declaration and payment of dividends.
Calvert Shareholder Services, Inc. ("CSSI"), a subsidiary of Calvert
Group, Ltd., and Acacia Mutual, has been retained by the Fund to act as
shareholder servicing agent. Shareholder servicing responsibilities include
responding to shareholder inquiries and instructions concerning their
accounts, entering any telephoned purchases or redemptions into the NFDS
system, maintenance of broker-dealer data, and preparing and distributing
statements to shareholders regarding their accounts. Calvert Shareholder
Services, Inc. was the sole transfer agent prior to January 1, 1998.
For these services, NFDS and Calvert Shareholder Services, Inc.
receive a fee based on the number of shareholder accounts and transactions.
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. During fiscal year 1997, $3,401 in
aggregate brokerage commissions were paid to broker-dealers.
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. For fiscal year 1997, it was 196%.
INDEPENDENT ACCOUNTANT AND CUSTODIANS
Coopers & Lybrand, L.L.P. has been selected by the Board of Trustees
to serve as independent accountant for fiscal year 1998. 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 and Calvert
New Vision 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 three
separate classes of shares: Class A, Class B and Class C. Each class represents
interests in the same portfolio of investments but, as further described in
the prospectus, each class is subject to differing sales charges and expenses,
which differences will result in differing net asset values and distributions.
Upon any liquidation of the Fund, shareholders of each class are entitled to
share pro rata in the net assets belonging to that series available for
distribution.
The 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 dated September 30, 1997 are expressly incorporated by reference
and made a part of this Statement of Additional Information. 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 and other applicable
terms 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.
Rabbi Trust: Nonqualified deferred compensation plan which is an irrevocable
trust established by an employer to hold assets to provide deferred
compensation for such employer's employees.
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.
<PAGE>
LETTER OF INTENT
Date
Calvert Distributors, Inc.
4550 Montgomery Avenue
Bethesda, MD 20814
Ladies and Gentlemen:
By signing this Letter of Intent, or affirmatively marking the Letter
of Intent option on my Fund Account Application Form, I agree to be bound by
the terms and conditions applicable to Letters of Intent appearing in the
Prospectus and the Statement of Additional Information for the Fund and the
provisions described below as they may be amended from time to time by the
Fund. Such amendments will apply automatically to existing Letters of Intent.
I intend to invest in the shares of__________________(Fund or
Portfolio name) during the thirteen (13) month period from the date of my
first purchase pursuant to this Letter (which cannot be more than ninety (90)
days prior to the date of this Letter or my Fund Account Application Form,
whichever is applicable), an aggregate amount (excluding any reinvestments of
distributions) of at least fifty thousand dollars ($50,000) which, together
with my current holdings of the Fund (at public offering price on date of this
Letter or my Fund Account Application Form, whichever is applicable), will
equal or exceed the amount checked below:
__ $50,000 __ $100,000 __ $250,000 __ $500,000 __ $1,000,000
Subject to the conditions specified below, including the terms of
escrow, to which I hereby agree, each purchase occurring after the date of
this Letter will be made at the public offering price applicable to a single
transaction of the dollar amount specified above, as described in the Fund's
prospectus. "Fund" in this Letter of Intent shall refer to the Fund or
Portfolio, as the case may be. No portion of the sales charge imposed on
purchases made prior to the date of this Letter will be refunded.
I am making no commitment to purchase shares, but if my purchases
within thirteen months from the date of my first purchase do not aggregate the
minimum amount specified above, I will pay the increased amount of sales
charges prescribed in the terms of escrow described below. I understand that
4.75% of the minimum dollar amount specified above will be held in escrow in
the form of shares (computed to the nearest full share). These shares will be
held subject to the terms of escrow described below.
From the initial purchase (or subsequent purchases if necessary),
4.75% of the dollar amount specified in this Letter shall be held in escrow in
shares of the Fund by the Fund's transfer agent. For example, if the minimum
amount specified under the Letter is $50,000, the escrow shall be shares
valued in the amount of $2,375 (computed at the public offering price adjusted
for a $50,000 purchase). All dividends and any capital gains distribution on
the escrowed shares will be credited to my account.
If the total minimum investment specified under the Letter is
completed within a thirteen month period, escrowed shares will be promptly
released to me. However, shares disposed of prior to completion of the
purchase requirement under the Letter will be deducted from the amount
required to complete the investment commitment.
Upon expiration of this Letter, the total purchases pursuant to the
Letter are less than the amount specified in the Letter as the intended
aggregate purchases, Calvert Distributors, Inc. ("CDI") will bill me for an
amount equal to the difference between the lower load I paid and the dollar
amount of sales charges which I would have paid if the total amount purchased
had been made at a single time. If not paid by the investor within 20 days,
CDI will debit the difference from my account. Full shares, if any, remaining
in escrow after the aforementioned adjustment will be released and, upon
request, remitted to me.
I irrevocably constitute and appoint CDI as my attorney-in-fact, with
full power of substitution, to surrender for redemption any or all escrowed
shares on the books of the Fund. This power of attorney is coupled with an
interest.
The commission allowed by Calvert Distributors, Inc. 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
By
Authorized Signer
Name of Investor(s)
Address
Signature of Investor(s)
Date
<PAGE>
PART C. OTHER INFORMATION
Item 24. Financial Statements and Exhibits
(a) Financial statements
Financial statements incorporated by reference to:
All financial statements for The Calvert Fund, Calvert New Vision
Small Cap Fund are incorporated by reference to Registrant's
Annual Report to Shareholders dated September 30, 1997,
and filed May 1, 1998.
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).
6. Underwriting and Dealer Agreement, (incorporated by reference to
Registrant's Post-Effective Amendment No. 34, March 31, 1998).
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. 34, March 31, 1998).
10. Opinion and Consent of Counsel as to Legality of Shares Being
Registered.
11. Consent of Independent Accountants.
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. 34, March 31, 1998. 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).
17.(ii) Financial Data Schedules, filed herewith.
18. Multiple-class Plan under the Investment Company Act of 1940
Rule 18f-3, (incorporated by reference to Registrant's Post-Effective
Amendment No. 34, March 31, 1998).
Exhibits 3, 12 and 13 are omitted because they are inapplicable.
Item 25. Persons Controlled By or Under Common Control With Registrant
Not applicable.
Item 26. Number of Holders of Securities
As of February 28, 1998, there were 2,715 holders of record of
Registrant's Class A shares of beneficial interest for Calvert Income Fund.
As of February 28, 1998, there were 11,858 holders of record of
Registrant's Class A shares of beneficial interest for Calvert New Vision
Small Cap Fund.
As of February 28, 1998, there were 1,477 holders of record of
Registrant's Class C shares of beneficial interest for Calvert New Vision
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
Barbara J. Krumsiek Acacia Capital Corporation Officer
Calvert Municipal Fund, Inc. and
Calvert World Values Fund, Inc. Director
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
First Variable Rate Fund for Officer
Government Income and
Calvert Tax-Free Reserves Trustee
Calvert Social Investment Fund
Calvert Cash Reserves
The Calvert Fund
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Asset Management Co., Inc. Officer
Investment Advisor and
4550 Montgomery Avenue Director
Bethesda, Maryland 20814
----------------
Calvert Group, Ltd. Officer
Holding Company and
4550 Montgomery Avenue Director
Bethesda, Maryland 20814
----------------
Calvert Shareholder Services, Inc. Officer
Transfer Agent and
4550 Montgomery Avenue Director
Bethesda, Maryland 20814
---------------
Calvert Administrative Services Co. Officer
Service Company and
4550 Montgomery Avenue Director
Bethesda, Maryland 20814
---------------
Calvert Distributors, Inc. Officer
Broker-Dealer and
4550 Montgomery Avenue Director
Bethesda, Maryland 20814
---------------
Calvert-Sloan Advisers, LLC Director
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert New World Fund, Inc. Director
Investment Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
--------------
Alliance Capital Mgmt. L.P. Sr. Vice President
Mutual Fund Division Director
1345 Avenue of the Americas
New York, NY 10105
--------------
Ronald M. Wolfsheimer First Variable Rate Fund Officer
for Government Income
Calvert Tax-Free Reserves
Calvert Cash Reserves
Calvert Social Investment Fund
The Calvert Fund
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 Co., Inc. Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Group, Ltd. Officer
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Shareholder Services, Inc. Officer
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Administrative Services Co. Officer
Service Company and
4550 Montgomery Avenue Director
Bethesda, Maryland 20814
---------------
Calvert Distributors, Inc. Director
Broker-Dealer and
4550 Montgomery Avenue Officer
Bethesda, Maryland 20814
---------------
Calvert-Sloan Advisers, LLC Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
David R. Rochat First Variable Rate Fund Officer
for Government Income and
Calvert Tax-Free Reserves Trustee
Calvert Cash Reserves
The Calvert Fund
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Municipal Fund, Inc. Officer
Investment Company and
4550 Montgomery Avenue Director
Bethesda, Maryland 20814
---------------
Calvert Asset Management Co., Inc. Officer
Investment Advisor and
4550 Montgomery Avenue Director
Bethesda, Maryland 20814
---------------
Chelsea Securities, Inc. Officer
Securities Firm and
Post Office Box 93 Director
Chelsea, Vermont 05038
---------------
Grady, Berwald & Co. Officer
Holding Company and
43A South Finley Avenue Director
Basking Ridge, NJ 07920
---------------
Reno J. Martini Calvert Asset Management Co., Inc. Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Group, Ltd. Officer
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
First Variable Rate Fund Officer
for Government Income
Calvert Tax-Free Reserves
Calvert Cash Reserves
Calvert Social Investment Fund
The Calvert Fund
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
---------------
Calvert-Sloan Advisers, LLC Director
Investment Advisor and
4550 Montgomery Avenue Officer
Bethesda, Maryland 20814
---------------
Charles T. Nason Acacia Mutual Life Insurance Officer
Acacia National Life Insurance and Director
Insurance Companies
7315 Wisconsin Avenue
Bethesda, Maryland 20814
---------------
Acacia Financial Corporation Officer
Holding Company and
7315 Wisconsin Avenue Director
Bethesda, Maryland 20814
---------------
Gardner Montgomery Company Director
Tax Return Preparation Services
7315 Wisconsin Avenue
Bethesda, Maryland 20814
----------------
Acacia Federal Savings Bank Director
Savings Bank
7600-B Leesburg Pike
Falls Church, Virginia 22043
---------------
Enterprise Resources, Inc. Director
Business Support Services
7315 Wisconsin Avenue
Bethesda, Maryland 20814
---------------
Acacia Insurance Management Officer
Services Corporation and
Service Corporation Director
7315 Wisconsin Avenue
Bethesda, Maryland 20814
---------------
Calvert Group, Ltd. Director
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Administrative Services Co. Director
Service Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Asset Management Co., Inc. Director
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Shareholder Services, Inc. Director
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Social Investment Fund Trustee
Investment Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
-----------------
The Advisors Group, Inc. Director
Broker-Dealer and
Investment Advisor
7315 Wisconsin Avenue
Bethesda, Maryland 20814
---------------
Robert-John H. Acacia National Life Insurance Officer
Sands Insurance Company and
7315 Wisconsin Avenue Director
Bethesda, Maryland 20814
----------------
Acacia Mutual Life Insurance Officer
Insurance Company
7315 Wisconsin Avenue
Bethesda, Maryland 20814
----------------
Acacia Financial Corporation Officer
Holding Company and
7315 Wisconsin Avenue Director
Bethesda, Maryland 20814
----------------
Acacia Federal Savings Bank Officer
Savings Bank
7600-B Leesburg Pike
Falls Church, Virginia 22043
---------------
Enterprise Resources, Inc. Director
Business Support Services
7315 Wisconsin Avenue
Bethesda, Maryland 20814
---------------
Acacia Realty Corporation Officer
Real Estate Investments
7315 Wisconsin Avenue
Bethesda, Maryland 20814
---------------
Acacia Insurance Management Officer
Services Corporation and
Service Corporation Director
7315 Wisconsin Avenue
Bethesda, Maryland 20814
---------------
Gardner Montgomery Company Officer
Tax Return and
Preparation Services Director
7315 Wisconsin Avenue
Bethesda, Maryland 20814
----------------
The Advisors Group, Inc. Director
Broker-Dealer and
Investment Advisor
7315 Wisconsin Avenue
Bethesda, Maryland 20814
---------------
Calvert Group, Ltd. Director
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Administrative Services Co. Director
Service Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Asset Management, Co., Inc. Director
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Shareholder Services, Inc. Director
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
William M. Tartikoff Acacia National Life Insurance Officer
Insurance Company
7315 Wisconsin Avenue
Bethesda, Maryland 20814
----------------
First Variable Rate Fund for Officer
Government Income
Calvert Tax-Free Reserves
Calvert Cash Reserves
Calvert Social Investment Fund
The Calvert Fund
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 Group, Ltd. Officer
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Administrative Officer
Services Company
Service Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Asset Management Co. Inc. Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Shareholder Services, Inc. Officer
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Distributors, Inc. Director
Broker-Dealer and
4550 Montgomery Avenue Officer
Bethesda, Maryland 20814
----------------
Calvert-Sloan Advisers, LLC Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Susan Walker Bender Calvert Group, Ltd. Officer
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Administrative Services Co. Officer
Service Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Asset Management Co., Inc. Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Shareholder Services, Inc. Officer
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Distributors, Inc. Officer
Broker-Dealer
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert-Sloan Advisers, LLC Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
First Variable Rate Fund for Officer
Government Income
Calvert Tax-Free Reserves
Calvert Cash Reserves
Calvert Social Investment Fund
The Calvert Fund
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
---------------
Katherine Stoner Calvert Group, Ltd. Officer
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Administrative Services Co. Officer
Service Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Asset Management Co., Inc. Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Shareholder Services, Inc. Officer
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Distributors, Inc. Officer
Broker-Dealer
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert-Sloan Advisers, LLC Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
First Variable Rate Fund for Officer
Government Income
Calvert Tax-Free Reserves
Calvert Cash Reserves
Calvert Social Investment Fund
The Calvert Fund
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
---------------
Lisa Crossley Newton Calvert Group, Ltd. Officer
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Administrative Services Co. Officer
Service Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Asset Management Co., Inc. Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Shareholder Services, Inc. Officer
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Distributors, Inc. Officer
Broker-Dealer
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert-Sloan Advisers, LLC Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
First Variable Rate Fund for Officer
Government Income
Calvert Tax-Free Reserves
Calvert Cash Reserves
Calvert Social Investment Fund
The Calvert Fund
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
---------------
Ivy Wafford Duke Calvert Group, Ltd. Officer
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Administrative Services Co. Officer
Service Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Asset Management Co., Inc. Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Shareholder Services, Inc. Officer
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Distributors, Inc. Officer
Broker-Dealer
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert-Sloan Advisers, LLC Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
First Variable Rate Fund for Officer
Government Income
Calvert Tax-Free Reserves
Calvert Cash Reserves
Calvert Social Investment Fund
The Calvert Fund
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
---------------
Daniel K. Hayes Calvert Asset Management Co., Inc. Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
First Variable Rate Fund for Officer
Government Income
Calvert Tax-Free Reserves
Calvert Cash Reserves
Calvert Social Investment Fund
The Calvert Fund
Acacia Capital Corporation
Calvert Municipal Fund, Inc.
Calvert World Values Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Steve Van Order Calvert Asset Management Officer
Company, Inc.
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Annette Krakovitz Calvert Asset Management Officer
Company, Inc.
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
John Nichols Calvert Asset Management Officer
Company, Inc.
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
David Leach Calvert Asset Management Officer
Company, Inc.
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Matthew D. Gelfand Calvert Asset Management Officer
Company, Inc.
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Strategic Investment Management Officer
Investment Advisor
1001 19th Street North
Arlington, Virginia 20009
------------------
Item 29. Principal Underwriters
(a) Registrant's principal underwriter also underwrites
shares 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 Officers and Directors
Name and Principal Position(s) with Position(s) with
Business Address Underwriter Registrant
Barbara J. Krumsiek Director and President President and Trustee
Ronald M. Wolfsheimer Director, Senior Vice Treasurer
President and Chief Financial Officer
William M. Tartikoff Director, Senior Vice Vice President and
President and Secretary Secretary
Craig Cloyed Senior Vice President None
Karen Becker Vice President, Operations None
Steve Cohen Vice President None
Geoffrey Ashton Regional Vice President None
Martin Brown Regional Vice President None
Janet Haley Regional Vice President None
Ben Ogbogu Regional Vice President None
Susan Walker Bender Assistant Secretary Assistant Secretary
Katherine Stoner Assistant Secretary Assistant Secretary
Lisa Crossley Newton Assistant Secretary Assistant Secretary
and Compliance Officer
Ivy Wafford Duke Assistant Secretary Assistant Secretary
(c) Inapplicable.
Item 30. Location of Accounts and Records
Ronald M. Wolfsheimer, Treasurer
and
William M. Tartikoff, Assistant Secretary
4550 Montgomery Avenue, Suite 1000N
Bethesda, Maryland 20814
Item 31. Management Services
Not Applicable
Item 32. Undertakings
a) Not Applicable
b) Not Applicable
(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.
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(b) 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 1st day of May, 1998.
THE CALVERT FUND
By:
________________**_________________
Barbara J. Krumsiek
President and Trustee
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933,
this Registration Statement has been signed below by the following
persons in the capacities indicated.
Signature Title Date
__________**____________ President and 5/1/98
Barbara J. Krumsiek Trustee (Principal Executive Officer)
__________**____________ Principal Accounting 5/1/98
Ronald M. Wolfsheimer Officer
__________**____________ Trustee 5/1/98
Richard L. Baird, Jr.
__________**____________ Trustee 5/1/98
Frank H. Blatz, Jr., Esq.
__________**____________ Trustee 5/1/98
Frederick T. Borts, M.D.
__________**____________ Trustee 5/1/98
Charles E. Diehl
__________**____________ Trustee 5/1/98
Douglas E. Feldman
__________**____________ Trustee 5/1/98
Peter W. Gavian
__________**____________ Trustee 5/1/98
John G. Guffey, Jr.
__________**____________ Trustee 5/1/98
M. Charito Kruvant
__________**____________ Trustee 5/1/98
Arthur J. Pugh
__________**____________ Trustee 5/1/98
David R. Rochat
__________**____________ Trustee 5/1/98
D. Wayne Silby
**By Ivy Wafford Duke as Attorney-in-fact, pursuant to Power of Attorney Forms
on file.
Exhibit 10
May 1, 1998
Securities and Exchange Commission
Judiciary Plaza
450 Fifth Street, N.W.
Washington, D.C. 20549
Re: Exhibit 10, Form N-1A
The Calvert Fund - New Vision Small Cap Fund
File numbers 2-76510 and 811-3416
Ladies and Gentlemen:
As 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. 35 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. 35 to its Registration Statement.
Sincerely,
Susan Walker Bender
Associate General Counsel
POWER OF ATTORNEY
I, the undersigned Trustee/Director of First Variable Rate Fund for
Government Income, Calvert Tax-Free Reserves, Calvert Cash Reserves, The
Calvert Fund, and Calvert Municipal Fund, Inc. (collectively, the "Funds"),
hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff, Susan Walker
Bender, Katherine Stoner, Lisa Crossley, and Ivy Wafford Duke my true and
lawful attorneys, with full power to each of them, to sign for me and in my
name in the appropriate capacities, all registration statements and amendments
filed by the 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 7, 1997
Date /Signature/
Edwidge Saint-Felix Barbara Krumsiek
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, The
Calvert Fund, and Calvert Municipal Fund, Inc. (collectively, the "Funds"),
hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff, Susan Walker
Bender, Katherine Stoner, Lisa Crossley, and Ivy Wafford Duke my true and
lawful attorneys, with full power to each of them, to sign for me and in my
name in the appropriate capacities, all registration statements and amendments
filed by the 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 7, 1997
Date /Signature/
Edwidge Saint-Felix 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, The
Calvert Fund, and Calvert Municipal Fund, Inc. (collectively, the "Funds"),
hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff, Susan Walker
Bender, Katherine Stoner, Lisa Crossley, and Ivy Wafford Duke my true and
lawful attorneys, with full power to each of them, to sign for me and in my
name in the appropriate capacities, all registration statements and amendments
filed by the 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 7, 1997
Date /Signature/
Charles E. Diehl 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, The
Calvert Fund, and Calvert Municipal Fund, Inc. (collectively, the "Funds"),
hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff, Susan Walker
Bender, Katherine Stoner, Lisa Crossley, and Ivy Wafford Duke my true and
lawful attorneys, with full power to each of them, to sign for me and in my
name in the appropriate capacities, all registration statements and amendments
filed by the 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 7, 1997
Date /Signature/
Edwidge Saint-Felix 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, The
Calvert Fund, and Calvert Municipal Fund, Inc. (collectively, the "Funds"),
hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff, Susan Walker
Bender, Katherine Stoner, Lisa Crossley, and Ivy Wafford Duke my true and
lawful attorneys, with full power to each of them, to sign for me and in my
name in the appropriate capacities, all registration statements and amendments
filed by the 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 7, 1997
Date /Signature/
Frank H. Blatz, Jr. 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, The
Calvert Fund, and Calvert Municipal Fund, Inc. (collectively, the "Funds"),
hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff, Susan Walker
Bender, Katherine Stoner, Lisa Crossley, and Ivy Wafford Duke my true and
lawful attorneys, with full power to each of them, to sign for me and in my
name in the appropriate capacities, all registration statements and amendments
filed by the 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 7, 1997
Date /Signature/
Edwidge Saint-Felix 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, The
Calvert Fund, and Calvert Municipal Fund, Inc. (collectively, the "Funds"),
hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff, Susan Walker
Bender, Katherine Stoner, Lisa Crossley, and Ivy Wafford Duke my true and
lawful attorneys, with full power to each of them, to sign for me and in my
name in the appropriate capacities, all registration statements and amendments
filed by the 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 7, 1997
Date /Signature/
M. Charito Kruvant John G. Guffey, Jr.
Witness Name of Trustee/Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Trustee/Director of First Variable Rate Fund for
Government Income, Calvert Tax-Free Reserves, Calvert Cash Reserves, The
Calvert Fund, and Calvert Municipal Fund, Inc. (collectively, the "Funds"),
hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff, Susan Walker
Bender, Katherine Stoner, Lisa Crossley, and Ivy Wafford Duke my true and
lawful attorneys, with full power to each of them, to sign for me and in my
name in the appropriate capacities, all registration statements and amendments
filed by the 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 7, 1997
Date /Signature/
Edwidge Saint-Felix M. Charito Kruvant
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, The
Calvert Fund, and Calvert Municipal Fund, Inc. (collectively, the "Funds"),
hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff, Susan Walker
Bender, Katherine Stoner, Lisa Crossley, and Ivy Wafford Duke my true and
lawful attorneys, with full power to each of them, to sign for me and in my
name in the appropriate capacities, all registration statements and amendments
filed by the 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 7, 1997
Date /Signature/
Charles E. Diehl 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, The
Calvert Fund, and Calvert Municipal Fund, Inc. (collectively, the "Funds"),
hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff, Susan Walker
Bender, Katherine Stoner, Lisa Crossley, and Ivy Wafford Duke my true and
lawful attorneys, with full power to each of them, to sign for me and in my
name in the appropriate capacities, all registration statements and amendments
filed by the 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 7, 1997
Date /Signature/
Katherine Stoner 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, The
Calvert Fund, and Calvert Municipal Fund, Inc. (collectively, the "Funds"),
hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff, Susan Walker
Bender, Katherine Stoner, Lisa Crossley, and Ivy Wafford Duke my true and
lawful attorneys, with full power to each of them, to sign for me and in my
name in the appropriate capacities, all registration statements and amendments
filed by the 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 7, 1997
Date /Signature/
Edwidge Saint-Felix 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, The
Calvert Fund, and Calvert Municipal Fund, Inc. (collectively, the "Funds"),
hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff, Susan Walker
Bender, Katherine Stoner, Lisa Crossley, and Ivy Wafford Duke my true and
lawful attorneys, with full power to each of them, to sign for me and in my
name in the appropriate capacities, all registration statements and amendments
filed by the 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.
January 16, 1998
Date /Signature/
Roger Wilkins Frederick Borts, MD
Witness Name of Trustee/Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned officer of Calvert Social Investment Fund, Calvert
World Values Fund, Acacia Capital Corporation, Calvert New World Fund, First
Variable Rate Fund, Calvert Tax-Free Reserves, Calvert Cash Reserves, The
Calvert Fund and Calvert Municipal Fund (each, respectively, the "Fund"),
hereby constitute William M. Tartikoff, Susan Walker Bender, Katherine Stoner,
Lisa Crossley, and Ivy Wafford Duke my true and lawful attorneys, with full
power to each of them, to sign for me and in my name in the appropriate
capacities, all registration statements and amendments filed by the Fund with
any federal or state agency, and to do all such things in my name and behalf
necessary for registering and maintaining registration or exemptions from
registration of the Fund with any government agency in any jurisdiction,
domestic or foreign.
The same persons are authorized generally to do all such things in my
name and behalf to comply with the provisions of all federal, state and
foreign laws, regulations, and policy pronouncements affecting the 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.
December 16, 1997
Date /Signature/
William M. Tartikoff Ronald M. Wolfsheimer
Witness Name of Officer
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000701039
<NAME> THE CALVERT FUND
<SERIES>
<NUMBER> 011
<NAME> CALVERT NEW VISION SMALL CAP FUND, CLASS A
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-START> APR-01-1997
<PERIOD-END> SEP-30-1997
<INVESTMENTS-AT-COST> 2329
<INVESTMENTS-AT-VALUE> 2802
<RECEIVABLES> 44
<ASSETS-OTHER> 749
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 3595
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 17
<TOTAL-LIABILITIES> 17
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 2880
<SHARES-COMMON-STOCK> 208
<SHARES-COMMON-PRIOR> 101
<ACCUMULATED-NII-CURRENT> (10)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (3)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 393
<NET-ASSETS> 3260
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 2
<OTHER-INCOME> 0
<EXPENSES-NET> 12
<NET-INVESTMENT-INCOME> (10)
<REALIZED-GAINS-CURRENT> 143
<APPREC-INCREASE-CURRENT> 490
<NET-CHANGE-FROM-OPS> 623
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 156
<NUMBER-OF-SHARES-REDEEMED> 49
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 107
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 10
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 17
<AVERAGE-NET-ASSETS> 3275
<PER-SHARE-NAV-BEGIN> 11.99
<PER-SHARE-NII> (.05)
<PER-SHARE-GAIN-APPREC> 3.71
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 15.65
<EXPENSE-RATIO> 1.03
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000701039
<NAME> THE CALVERT FUND
<SERIES>
<NUMBER> 144
<NAME> NEW VISION SMALL CAP, CLASS C
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-START> APR-01-1997
<PERIOD-END> SEP-30-1997
<INVESTMENTS-AT-COST> 2329
<INVESTMENTS-AT-VALUE> 2802
<RECEIVABLES> 44
<ASSETS-OTHER> 749
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 3595
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 17
<TOTAL-LIABILITIES> 17
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 245
<SHARES-COMMON-STOCK> 20
<SHARES-COMMON-PRIOR> 17
<ACCUMULATED-NII-CURRENT> (2)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (5)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 80
<NET-ASSETS> 318
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 2
<NET-INVESTMENT-INCOME> (2)
<REALIZED-GAINS-CURRENT> 17
<APPREC-INCREASE-CURRENT> 94
<NET-CHANGE-FROM-OPS> 109
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 23
<NUMBER-OF-SHARES-REDEEMED> 20
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 3
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 2
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 3
<AVERAGE-NET-ASSETS> 380
<PER-SHARE-NAV-BEGIN> 11.99
<PER-SHARE-NII> (.10)
<PER-SHARE-GAIN-APPREC> 3.73
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 15.62
<EXPENSE-RATIO> 1.30
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
CONSENT OF INDEPENDENT ACCOUNTANTS
To the Board of Trustees of The Calvert Fund
We consent to the incorporation by reference in Post-Effective Amendment No.
35 to the Registration Statement of The Calvert Fund on Form N-1A (File
Numbers 2-76510 and 811-3416) of our report dated April 10, 1998 on our audit
of the financial statements and financial highlights of Calvert New Vision
Small Cap Fund, which report is included in the Annual Report to Shareholders
for the year ended September 30, 1997, which is incorporated by reference in
the Registration Statement. We also consent to the reference to our firm under
the caption "Independent Accountants and Custodians" in the Statement of
Additional Information.
COOPERS & LYBRAND L.L.P.
Baltimore, Maryland
May 4, 1998
