CALVERT
INCOME FUND
PROSPECTUS
JANUARY 31, 2000
ABOUT THE FUND
2 INVESTMENT OBJECTIVE, STRATEGY, PAST PERFORMANCE
4 FEES AND EXPENSES
5 PRINCIPAL INVESTMENT PRACTICES AND RISKS
ABOUT YOUR INVESTMENT
10 PORTFOLIO MANAGER
10 ADVISORY FEES
11 HOW TO BUY SHARES/GETTING STARTED
11 CHOOSING A SHARE CLASS
13 CALCULATION OF CDSC/WAIVER
13 DISTRIBUTION AND SERVICE FEES
14 NEXT STEP - ACCOUNT APPLICATION
14 HOW SHARES ARE PRICED
15 WHEN YOUR ACCOUNT WILL BE CREDITED
15 OTHER CALVERT GROUP FEATURES
(EXCHANGES, MINIMUM ACCOUNT BALANCE, ETC.)
18 DIVIDENDS, CAPITAL GAINS AND TAXES
19 HOW TO SELL SHARES
21 FINANCIAL HIGHLIGHTS
23 EXHIBIT A- REDUCED SALES CHARGES (CLASS A)
25 EXHIBIT B- SERVICE FEES AND OTHER ARRANGEMENTS WITH DEALERS
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION ("SEC") OR ANY STATE SECURITIES COMMISSION, NOR HAS THE SEC
OR ANY STATE SECURITIES COMMISSION PASSED ON THE ACCURACY OR ADEQUACY OF THIS
PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
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OBJECTIVE
CALVERT INCOME FUND SEEKS TO MAXIMIZE LONG-TERM INCOME, TO THE EXTENT CONSISTENT
WITH PRUDENT INVESTMENT MANAGEMENT AND PRESERVATION OF CAPITAL, THROUGH
INVESTMENT IN BONDS AND OTHER INCOME PRODUCING SECURITIES.
PRINCIPAL INVESTMENT STRATEGIES
THE FUND USES AN ACTIVE STRATEGY, SEEKING RELATIVE VALUE TO EARN INCREMENTAL
INCOME. THE FUND TYPICALLY INVESTS AT LEAST 65% OF ITS ASSETS IN INVESTMENT
GRADE DEBT SECURITIES.
PRINCIPAL RISKS
YOU COULD LOSE MONEY ON YOUR INVESTMENT IN THE FUND, OR THE FUND COULD
UNDERPERFORM, MOST LIKELY FOR ANY OF THE FOLLOWING REASONS:
- - THE BOND MARKET GOES DOWN
- - THE INDIVIDUAL BONDS IN THE FUND DO NOT PERFORM AS WELL AS EXPECTED
- - THE ADVISOR'S FORECAST AS TO INTEREST RATES IS NOT CORRECT
- - THE ADVISOR'S ALLOCATION AMONG DIFFERENT SECTORS OF THE BOND MARKET DOES
NOT PERFORM AS WELL AS EXPECTED
- - THE FUND IS NON-DIVERSIFIED. COMPARED TO OTHER FUNDS, THE FUND MAY INVEST
MORE OF ITS ASSETS IN A SMALLER NUMBER OF COMPANIES. GAINS OR LOSSES ON A SINGLE
BOND MAY HAVE GREATER IMPACT ON THE FUND.
THE FUND'S ACTIVE TRADING STRATEGY MAY CAUSE THE FUND TO HAVE A RELATIVELY HIGH
AMOUNT OF SHORT-TERM CAPITAL GAINS, WHICH ARE TAXABLE TO YOU AT THE ORDINARY
INCOME TAX RATE.
AN INVESTMENT IN THE FUND IS NOT A BANK DEPOSIT AND IS NOT INSURED OR GUARANTEED
BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY.
BAR CHART AND PERFORMANCE TABLE
THE FOLLOWING BAR CHART AND TABLE SHOW THE FUND'S ANNUAL RETURNS AND ITS
LONG-TERM PERFORMANCE. THE CHART AND TABLE PROVIDE SOME INDICATION OF THE RISKS
OF INVESTING IN THE FUND. THE CHART SHOWS HOW THE PERFORMANCE OF THE CLASS A
SHARES HAS VARIED FROM YEAR TO YEAR. THE TABLE COMPARES THE FUND'S PERFORMANCE
OVER TIME TO THAT OF THE LEHMAN AGGREGATE BOND INDEX. THIS IS A WIDELY
RECOGNIZED, UNMANAGED INDEX OF BOND PRICES. IT ALSO SHOWS THE FUND'S RETURNS
COMPARED TO THE LIPPER BBB RATED FUND INDEX, A COMPOSITE INDEX OF THE ANNUAL
RETURN OF MUTUAL FUNDS THAT HAVE AN INVESTMENT GOAL SIMILAR TO THAT OF THE FUND.
THE FUND'S PAST PERFORMANCE DOES NOT NECESSARILY INDICATE HOW THE FUND WILL
PERFORM IN THE FUTURE.
<PAGE>
THE RETURN FOR THE FUND'S OTHER CLASSES OF SHARES OFFERED BY THIS PROSPECTUS
WILL DIFFER FROM THE CLASS A RETURNS SHOWN IN THE BAR CHART, DEPENDING UPON THE
EXPENSES OF THAT CLASS. THE BAR CHART DOES NOT REFLECT ANY SALES CHARGE THAT YOU
MAY BE REQUIRED TO PAY UPON PURCHASE OR REDEMPTION OF THE FUND'S SHARES. ANY
SALES CHARGE WILL REDUCE YOUR RETURN. THE AVERAGE TOTAL RETURN TABLE SHOWS
RETURNS WITH THE MAXIMUM SALES CHARGE DEDUCTED. NO SALES CHARGE HAS BEEN APPLIED
TO THE INDEX USED FOR COMPARISON IN THE TABLE.
YEAR-BY-YEAR TOTAL RETURN
(CLASS A RETURN AT NAV)
(INSERT BAR CHART HERE)
BEST QUARTER (OF PERIODS SHOWN) 2Q '95 7.04%
WORST QUARTER (OF PERIODS SHOWN) 1Q '94 (4.56%)
AVERAGE ANNUAL TOTAL RETURNS (FOR THE PERIODS ENDED DECEMBER 31, 1999) (WITH
MAXIMUM SALES CHARGE DEDUCTED)
1 YEAR 5 YEAR 10 YEAR
INCOME FUND: CLASS A 3.23% 9.33% 8.09%
INCOME FUND: CLASS B N/A N/A N/A
LEHMAN AGGREGATE BOND INDEX TR
(0.82%) 7.73% 7.70%
LIPPER BBB RATED FUND INDEX
(1.12%) 7.68% 7.72%
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FEES AND EXPENSES
THIS TABLE DESCRIBES THE FEES AND EXPENSES THAT YOU MAY PAY IF YOU BUY AND HOLD
SHARES OF THE FUND.
CLASS A CLASS B3
SHAREHOLDER FEES
(FEES PAID DIRECTLY FROM YOUR INVESTMENT)
MAXIMUM SALES CHARGE (LOAD)
IMPOSED ON PURCHASES 3.75% NONE
(AS A PERCENTAGE OF OFFERING PRICE)
MAXIMUM DEFERRED SALES CHARGE (LOAD)
(AS A PERCENTAGE OF PURCHASE OR NONE2 4.00%4
REDEMPTION PROCEEDS, WHICHEVER IS LOWER)
ANNUAL FUND OPERATING EXPENSES1
(EXPENSES THAT ARE DEDUCTED FROM
FUND ASSETS)
MANAGEMENT FEES .70% .70%
DISTRIBUTION AND SERVICE (12B-1) FEES .15% 1.00%
OTHER EXPENSES .47% 1.21%
TOTAL ANNUAL FUND OPERATING EXPENSES 1.32% 2.91%
1 ANNUAL FUND OPERATING EXPENSES ARE BASED ON EXPENSES FOR THE FUND'S MOST
RECENT FISCAL YEAR, UNLESS OTHERWISE INDICATED. MANAGEMENT FEES INCLUDE
ANY ADMINISTRATIVE FEE PAID BY THE FUND TO CALVERT ADMINISTRATIVE
SERVICES COMPANY, AN AFFILIATE OF CALVERT ASSET MANAGEMENT COMPANY, INC.
("CAMCO").
2 PURCHASES OF CLASS A SHARES FOR ACCOUNTS WITH $1 MILLION OR MORE ARE NOT
SUBJECT TO FRONT-END SALES CHARGES, BUT MAY BE SUBJECT TO A 1.0%
CONTINGENT DEFERRED SALES CHARGE ON SHARES REDEEMED WITHIN 1 YEAR OF
PURCHASE. (SEE "HOW TO BUY SHARES-CLASS A").
3 EXPENSES ARE BASED ON ESTIMATES FOR THE CURRENT FISCAL YEAR.
4 A CONTINGENT DEFERRED SALES CHARGE IS IMPOSED ON THE PROCEEDS OF CLASS B
SHARES REDEEMED WITHIN 4 YEARS, SUBJECT TO CERTAIN EXCEPTIONS. THE
CHARGE IS A PERCENTAGE OF NET ASSET VALUE AT THE TIME OF PURCHASE OR
REDEMPTION, WHICHEVER IS LESS, AND DECLINES FROM 4% IN THE FIRST YEAR THE SHARES
ARE HELD, TO 3% IN THE SECOND, 2% IN THE THIRD YEAR, AND 1% IN THE
FOURTH YEAR. THERE IS NO CHARGE ON REDEMPTIONS OF CLASS B SHARES HELD
FOR MORE THAN FOUR YEARS. SEE "CALCULATION OF CONTINGENT DEFERRED SALES
CHARGE."
<PAGE>
ANNUAL FUND OPERATING EXPENSES
EXAMPLE
THIS EXAMPLE IS INTENDED TO HELP YOU COMPARE THE COST OF INVESTING IN A FUND
WITH THE COST OF INVESTING IN OTHER MUTUAL FUNDS. THE EXAMPLE ASSUMES THAT:
- - YOU INVEST $10,000 IN THE FUND FOR THE TIME PERIODS INDICATED;
- - YOUR INVESTMENT HAS A 5% RETURN EACH YEAR; AND
- - THE FUND'S OPERATING EXPENSES REMAIN THE SAME.
ALTHOUGH YOUR ACTUAL COSTS MAY BE HIGHER OR LOWER, UNDER THESE ASSUMPTIONS YOUR
COSTS WOULD BE:
1 YEAR 3 YEARS 5 YEARS 10 YEARS
CLASS A $504 $778 $1,071 $1,906
CLASS B (WITH REDEMPTION)
$694 $1,101 $1,533 $2,502
CLASS B (NO REDEMPTION)
$294 $901 $1,533 $2,502
PRINCIPAL INVESTMENT PRACTICES AND RISKS
THE MOST CONCISE DESCRIPTION OF THE FUND'S RISK PROFILE IS UNDER THE EARLIER
SUMMARY. THE FUND IS ALSO PERMITTED TO INVEST IN CERTAIN OTHER INVESTMENTS AND
TO USE CERTAIN INVESTMENT TECHNIQUES THAT HAVE HIGHER RISKS ASSOCIATED WITH
THEM. ON THE FOLLOWING PAGES ARE BRIEF DESCRIPTIONS OF THESE OTHER PRINCIPAL
INVESTMENTS AND TECHNIQUES, SUMMARIZED EARLIER, ALONG WITH THEIR RISKS.
FOR EACH OF THE INVESTMENT PRACTICES LISTED, THE TABLE BELOW SHOWS THE FUND'S
LIMITATIONS AS A PERCENTAGE OF ITS ASSETS AND THE PRINCIPAL TYPES OF RISK
INVOLVED. (SEE THE PAGES FOLLOWING THE TABLE FOR A DESCRIPTION OF THE TYPES OF
RISKS). NUMBERS IN THIS TABLE SHOW MAXIMUM ALLOWABLE AMOUNT ONLY; FOR ACTUAL
USAGE, CONSULT THE FUND'S ANNUAL/SEMI-ANNUAL REPORTS.
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KEY TO TABLE
J FUND CURRENTLY USES
O PERMITTED, BUT NOT TYPICALLY USED
(% OF ASSETS ALLOWABLE, IF RESTRICTED)
7 NOT PERMITTED
XN ALLOWED UP TO X% OF FUND'S NET ASSETS
XT ALLOWED UP TO X% OF FUND'S TOTAL ASSETS
NA NOT APPLICABLE TO THIS TYPE OF FUND
INVESTMENT PRACTICES
ACTIVE TRADING STRATEGY/TURNOVER INVOLVES SELLING A
SECURITY SOON AFTER PURCHASE. AN ACTIVE TRADING STRATEGY CAUSES A FUND TO HAVE
HIGHER PORTFOLIO TURNOVER COMPARED TO OTHER FUNDS AND HIGHER TRANSACTION COSTS,
SUCH AS COMMISSIONS AND CUSTODIAN AND SETTLEMENT FEES, AND MAY INCREASE A FUND'S
TAX LIABILITY. RISKS: OPPORTUNITY, MARKET AND TRANSACTION.
J
TEMPORARY DEFENSIVE POSITIONS. DURING ADVERSE MARKET,
ECONOMIC OR POLITICAL CONDITIONS, THE FUND MAY DEPART FROM ITS PRINCIPAL
INVESTMENT STRATEGIES BY INCREASING ITS INVESTMENT IN U.S. GOVERNMENT SECURITIES
AND OTHER SHORT-TERM INTEREST-BEARING
SECURITIES. RISKS: OPPORTUNITY.
0
HEDGING STRATEGIES. THE USE OF SHORT SALES OF US TREASURY SECURITIES FOR THE
LIMITED PURPOSE OF HEDGING THE FUND'S DURATION
(DURATION IS A MEASURE OF THE INTEREST RATE-SENSITIVITY OF THE FUND). ANY SHORT
SALES ARE "COVERED" WITH AN EQUIVALENT AMOUNT OF HIGH QUALITY, LIQUID SECURITIES
IN A SEGREGATED ACCOUNT AT THE FUND'S CUSTODIAN. THIS TECHNIQUE IS INTENDED TO
LOWER THE FUND'S INTEREST RATE RISK. RISKS: CORRELATION, MANAGEMENT AND
OPPORTUNITY.
J
CONVENTIONAL SECURITIES
FOREIGN SECURITIES. SECURITIES ISSUED BY COMPANIES LOCATED OUTSIDE THE U.S.
AND/OR TRADED PRIMARILY ON A FOREIGN EXCHANGE. RISKS: MARKET, CURRENCY,
TRANSACTION, LIQUIDITY, INFORMATION AND POLITICAL.
30N
INVESTMENT GRADE BONDS. BONDS RATED BBB/BAA OR HIGHER OR COMPARABLE UNRATED
BONDS. RISKS: INTEREST RATE, MARKET AND CREDIT.
J
BELOW-INVESTMENT GRADE BONDS. BONDS RATED BELOW BBB/BAA OR COMPARABLE UNRATED
BONDS ARE CONSIDERED JUNK BONDS. THEY ARE SUBJECT TO GREATER CREDIT RISK THAN
INVESTMENT GRADE BONDS. RISKS: CREDIT, MARKET, INTEREST RATE, LIQUIDITY AND
INFORMATION.
35N
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PRINCIPAL INVESTMENT PRACTICES AND RISKS (CONT'D)
INVESTMENT PRACTICES
UNRATED DEBT SECURITIES. BONDS THAT HAVE NOT BEEN RATED BY A
RECOGNIZED RATING AGENCY; THE ADVISOR HAS DETERMINED THE CREDIT QUALITY BASED ON
ITS OWN RESEARCH. RISKS: CREDIT, MARKET, INTEREST RATE, LIQUIDITY AND
INFORMATION.
J
ILLIQUID SECURITIES. SECURITIES WHICH CANNOT BE READILY SOLD BECAUSE THERE IS NO
ACTIVE MARKET. RISKS: LIQUIDITY, MARKET AND TRANSACTION.
15N
UNLEVERAGED DERIVATIVE SECURITIES
ASSET-BACKED SECURITIES. SECURITIES ARE BACKED BY UNSECURED DEBT, SUCH AS CREDIT
CARD DEBT. THESE SECURITIES ARE OFTEN GUARANTEED OR OVER-COLLATERALIZED TO
ENHANCE THEIR CREDIT QUALITY. RISKS: CREDIT, INTEREST RATE AND LIQUIDITY.
J
MORTGAGE-BACKED SECURITIES. SECURITIES ARE BACKED BY POOLS OF MORTGAGES,
INCLUDING PASSTHROUGH CERTIFICATES, AND OTHER SENIOR CLASSES OF COLLATERALIZED
MORTGAGE OBLIGATIONS (CMOS). RISKS: CREDIT, EXTENSION, PREPAYMENT, LIQUIDITY AND
INTEREST RATE.
J
PARTICIPATION INTERESTS. SECURITIES REPRESENTING AN INTEREST IN ANOTHER SECURITY
OR IN BANK LOANS. RISKS: CREDIT, INTEREST RATE AND LIQUIDITY.
0
LEVERAGED DERIVATIVE INSTRUMENTS
CURRENCY CONTRACTS. CONTRACTS INVOLVING THE RIGHT OR OBLIGATION TO BUY OR SELL A
GIVEN AMOUNT OF FOREIGN CURRENCY AT A SPECIFIED PRICE AND FUTURE DATE. RISKS:
CURRENCY, LEVERAGE, CORRELATION, LIQUIDITY AND OPPORTUNITY.
0
5T
OPTIONS ON SECURITIES AND INDICES. CONTRACTS GIVING THE HOLDER THE RIGHT BUT NOT
THE OBLIGATION TO PURCHASE OR SELL A SECURITY (OR THE CASH VALUE, IN THE CASE OF
AN OPTION ON AN INDEX) AT A SPECIFIED PRICE WITHIN A SPECIFIED TIME. IN THE CASE
OF SELLING (WRITING) OPTIONS, THE FUND WILL WRITE CALL OPTIONS ONLY IF IT
ALREADY OWNS THE SECURITY (IF IT IS "COVERED"). RISKS: INTEREST RATE, CURRENCY,
MARKET, LEVERAGE, CORRELATION, LIQUIDITY, CREDIT AND OPPORTUNITY.
0
FUTURES CONTRACT. AGREEMENT TO BUY OR SELL A SPECIFIC AMOUNT OF
A COMMODITY OR FINANCIAL INSTRUMENT AT A PARTICULAR PRICE ON A SPECIFIC FUTURE
DATE. RISKS: INTEREST RATE, CURRENCY, MARKET, LEVERAGE, CORRELATION, LIQUIDITY
AND OPPORTUNITY.
5N
<PAGE>
PRINCIPAL INVESTMENT PRACTICES AND RISKS (CONT'D)
INVESTMENT PRACTICES
STRUCTURED SECURITIES. INDEXED AND/OR LEVERAGED MORTGAGE-BACKED AND OTHER DEBT
SECURITIES, INCLUDING PRINCIPAL-ONLY AND INTEREST-ONLY SECURITIES, LEVERAGED
FLOATING RATE SECURITIES, AND OTHERS. THESE SECURITIES TEND TO BE HIGHLY
SENSITIVE TO INTEREST RATE MOVEMENTS AND THEIR PERFORMANCE MAY NOT CORRELATE TO
THESE MOVEMENTS IN A CONVENTIONAL FASHION. RISKS: CREDIT, INTEREST RATE,
EXTENSION, PREPAYMENT, MARKET, LEVERAGE, LIQUIDITY AND CORRELATION.
0
THE FUND HAS ADDITIONAL INVESTMENT POLICIES AND RESTRICTIONS THAT ARE NOT
PRINCIPAL TO THEIR INVESTMENT STRATEGIES (FOR EXAMPLE, REPURCHASE AGREEMENTS,
BORROWING, PLEDGING, AND REVERSE REPURCHASE AGREEMENTS, SECURITIES LENDING,
WHEN-ISSUED SECURITIES AND SHORT SALES.) THESE POLICIES AND RESTRICTIONS ARE
DISCUSSED IN THE STATEMENT OF ADDITIONAL INFORMATION ("SAI").
TYPES OF INVESTMENT RISK
CORRELATION RISK
THIS OCCURS WHEN A FUND "HEDGES"- USES ONE INVESTMENT TO OFFSET THE FUND'S
POSITION IN ANOTHER. IF THE TWO INVESTMENTS DO NOT BEHAVE IN RELATION TO ONE
ANOTHER THE WAY FUND MANAGERS EXPECT THEM TO, THEN UNEXPECTED OR UNDESIRED
RESULTS MAY OCCUR. FOR EXAMPLE, A HEDGE MAY ELIMINATE OR REDUCE GAINS AS WELL AS
OFFSET LOSSES.
CREDIT RISK
THE RISK THAT THE ISSUER OF A SECURITY OR THE COUNTERPARTY TO AN INVESTMENT
CONTRACT MAY DEFAULT OR BECOME UNABLE TO PAY ITS OBLIGATIONS WHEN DUE.
CURRENCY RISK
CURRENCY RISK OCCURS WHEN A FUND BUYS OR SELLS A SECURITY DENOMINATED IN FOREIGN
CURRENCY. FOREIGN CURRENCIES "FLOAT" IN VALUE AGAINST THE U.S. DOLLAR. ADVERSE
CHANGES IN FOREIGN CURRENCY VALUES CAN CAUSE INVESTMENT LOSSES WHEN A FUND'S
INVESTMENTS ARE CONVERTED TO U.S. DOLLARS.
EXTENSION RISK
THE RISK THAT AN UNEXPECTED RISE IN INTEREST RATES WILL EXTEND THE LIFE OF A
MORTGAGE-BACKED SECURITY BEYOND THE EXPECTED PREPAYMENT TIME, TYPICALLY
REDUCING THE SECURITY'S VALUE.
INFORMATION RISK
THE RISK THAT INFORMATION ABOUT A SECURITY OR ISSUER MIGHT NOT BE AVAILABLE,
COMPLETE, ACCURATE OR COMPARABLE.
<PAGE>
INTEREST RATE RISK
THE RISK THAT CHANGES IN INTEREST RATES WILL ADVERSELY AFFECT THE VALUE OF AN
INVESTOR'S SECURITIES. WHEN INTEREST RATES RISE, THE VALUE OF FIXED-INCOME
SECURITIES WILL GENERALLY FALL. CONVERSELY, A DROP IN INTEREST RATES WILL
GENERALLY CAUSE AN INCREASE IN THE VALUE OF FIXED-INCOME SECURITIES. LONGER-TERM
SECURITIES AND ZERO COUPON/"STRIPPED" COUPON SECURITIES ("STRIPS") ARE SUBJECT
TO GREATER INTEREST RATE RISK.
LEVERAGE RISK
THE RISK THAT OCCURS IN SOME SECURITIES OR TECHNIQUES WHICH TEND TO MAGNIFY THE
EFFECT OF SMALL CHANGES IN AN INDEX OR A MARKET. THIS CAN RESULT IN A LOSS THAT
EXCEEDS THE AMOUNT ACTUALLY INVESTED.
LIQUIDITY RISK
THE RISK THAT OCCURS WHEN INVESTMENTS CANNOT BE READILY SOLD. A FUND MAY HAVE TO
ACCEPT A LESS-THAN-DESIRABLE PRICE TO COMPLETE THE SALE OF AN ILLIQUID SECURITY
OR MAY NOT BE ABLE TO SELL IT AT ALL.
MANAGEMENT RISK
THE RISK THAT A FUND'S PORTFOLIO MANAGEMENT PRACTICES MIGHT NOT WORK TO ACHIEVE
THEIR DESIRED RESULT.
MARKET RISK
THE RISK THAT SECURITIES PRICES IN A MARKET, A SECTOR OR AN INDUSTRY WILL
FLUCTUATE, AND THAT SUCH MOVEMENTS MIGHT REDUCE AN INVESTMENT'S VALUE.
OPPORTUNITY RISK
THE RISK OF MISSING OUT ON AN INVESTMENT OPPORTUNITY BECAUSE THE ASSETS NEEDED
TO TAKE ADVANTAGE OF IT ARE COMMITTED TO LESS ADVANTAGEOUS INVESTMENTS OR
STRATEGIES.
POLITICAL RISK
THE RISK THAT MAY OCCUR WITH FOREIGN INVESTMENTS, AND MEANS THAT THE VALUE OF
AN INVESTMENT MAY BE ADVERSELY AFFECTED BY NATIONALIZATION, TAXATION, WAR,
GOVERNMENT INSTABILITY OR OTHER ECONOMIC OR POLITICAL ACTIONS OR FACTORS.
PREPAYMENT RISK
THE RISK THAT ANTICIPATED PREPAYMENTS MAY OCCUR, REDUCING THE VALUE OF A
MORTGAGE-BACKED SECURITY. THE FUND MUST THEN REINVEST THOSE ASSETS AT THE
CURRENT MARKET RATE WHICH MAY BE LOWER.
TRANSACTION RISK
THE RISK THAT A FUND MAY BE DELAYED OR UNABLE TO SETTLE A TRANSACTION OR THAT
COMMISSIONS AND SETTLEMENT EXPENSES MAY BE HIGHER THAN USUAL.
<PAGE>
ABOUT CALVERT GROUP
CAMCO (4550 MONTGOMERY AVENUE, SUITE 1000N, BETHESDA, MD 20814) IS THE FUND'S
INVESTMENT ADVISOR. CAMCO PROVIDES THE FUND WITH INVESTMENT SUPERVISION AND
MANAGEMENT AND OFFICE SPACE; FURNISHES EXECUTIVE AND OTHER PERSONNEL TO THE
FUND; AND PAYS THE SALARIES AND FEES OF ALL TRUSTEES WHO ARE AFFILIATED PERSONS
OF THE ADVISOR. IT HAS BEEN MANAGING MUTUAL FUNDS SINCE 1976. CAMCO IS THE
INVESTMENT ADVISOR FOR OVER 25 MUTUAL FUND PORTFOLIOS, INCLUDING THE FIRST AND
LARGEST FAMILY OF SOCIALLY SCREENED FUNDS. AS OF DECEMBER 31, 1999, CAMCO HAD
OVER $6 BILLION IN ASSETS UNDER MANAGEMENT.
CAMCO USES A TEAM APPROACH TO ITS MANAGEMENT OF THE FUND. RENO J. MARTINI,
SENIOR VICE PRESIDENT AND CHIEF INVESTMENT OFFICER, HEADS THIS TEAM AND OVERSEES
THE INVESTMENT STRATEGY AND MANAGEMENT OF ALL CALVERT FUNDS FOR CAMCO WHILE
GREGORY HABEEB MANAGES THE DAY-TO-DAY INVESTMENTS OF CAMCO'S TAXABLE
FIXED-INCOME PORTFOLIOS. MR. HABEEB HAS OVER 19 YEARS OF EXPERIENCE AS AN
ANALYST, TRADER, AND PORTFOLIO MANAGER.
ADVISORY FEES
THE ANNUAL ADVISORY FEE PAID TO CAMCO BY THE FUND FOR THE MOST RECENT FISCAL
YEAR WAS 0.50% OF THE FUND'S AVERAGE DAILY NET ASSETS. EFFECTIVE MARCH 1, 1999,
THE ADVISORY FEE WAS REDUCED TO 0.40%. PRIOR TO THIS DATE, THE ADVISORY FEE WAS
0.70% OF THE FUND'S AVERAGE DAILY NET ASSETS.
A WORD ABOUT THE YEAR 2000 (Y2K) AND OUR COMPUTER SYSTEMS
LIKE WITH OTHER MUTUAL FUNDS, CAMCO AND ITS SERVICE PROVIDERS USE COMPUTER
SYSTEMS FOR ALL ASPECTS OF OUR BUSINESS-PROCESSING SHAREHOLDER AND FUND
TRANSACTIONS, FUND ACCOUNTING, EXECUTING TRADES, AND PRICING SECURITIES JUST TO
NAME A FEW. THE CONCERN HAS BEEN THAT MANY SOFTWARE PROGRAMS CANNOT DISTINGUISH
BETWEEN THE YEAR 2000 AND THE YEAR 1900. THIS COULD CAUSE PROBLEMS WITH
RETIREMENT PLAN DISTRIBUTIONS, DIVIDEND PAYMENT SOFTWARE, TRANSACTION SOFTWARE,
AND NUMEROUS OTHER AREAS THAT IMPACT THE FUND. LEADING UP TO THIS YEAR, CALVERT
GROUP HAS BEEN REVIEWING ALL OF ITS COMPUTER SYSTEMS FOR Y2K COMPLIANCE.
ALTHOUGH, THUS FAR, THERE HAVE BEEN NO PROBLEMS CAUSED BY Y2K THAT COULD IMPACT
THE FUND, THERE CAN BE NO ASSURANCE THAT THERE WILL BE NO FUTURE IMPACT. THE
ADVISOR, THE UNDERWRITER, TRANSFER AGENT AND CUSTODIAN HAVE ADVISED THE FUND
THAT THEY WILL CONTINUE TO ACTIVELY WORK ON ANY NECESSARY CHANGES TO THEIR
COMPUTER SYSTEMS TO ADDRESS ANY ISSUES THAT MAY ARISE THROUGHOUT THE YEAR AND
EXPECT THAT THEIR SYSTEMS, AND THOSE OF THEIR OUTSIDE SERVICE PROVIDERS, WILL BE
ADAPTED ACCORDINGLY. FOR MORE INFORMATION, PLEASE VISIT OUR WEBSITE AT
WWW.CALVERT.COM.
<PAGE>
HOW TO BUY SHARES
GETTING STARTED-BEFORE YOU OPEN AN ACCOUNT
FIRST, DECIDE WHICH FUND OR FUNDS BEST SUITS YOUR NEEDS AND YOUR GOALS.
SECOND, DECIDE WHAT KIND OF ACCOUNT YOU WANT TO OPEN. CALVERT OFFERS INDIVIDUAL,
JOINT, TRUST, UNIFORM GIFTS/TRANSFERS TO MINOR ACCOUNTS, TRADITIONAL, EDUCATION
AND ROTH IRAS, QUALIFIED PROFIT-SHARING AND MONEY PURCHASE PLANS, SIMPLE IRAS,
SEP-IRAS, 403(B)(7) ACCOUNTS, AND SEVERAL OTHER TYPES OF ACCOUNTS. MINIMUM
INVESTMENTS ARE LOWER FOR THE RETIREMENT PLANS.
THEN, DECIDE WHICH CLASS OF SHARES IS BEST FOR YOU. YOU SHOULD MAKE THE DECISION
CAREFULLY, BASED ON:
- - THE AMOUNT YOU WISH TO INVEST;
- - THE LENGTH OF TIME YOU PLAN TO KEEP THE INVESTMENT; AND
- - THE CLASS EXPENSES
CHOOSING A SHARE CLASS
THE FUND OFFERS THREE DIFFERENT CLASSES (CLASS A, B, AND I). CLASS I ($1 MILLION
MINIMUM) IS OFFERED IN A SEPARATE PROSPECTUS. THIS PROSPECTUS OFFERS CLASS A AND
CLASS B. THE CHART BELOW SHOWS THE DIFFERENCE BETWEEN CLASS A AND B AND THE
GENERAL TYPES OF INVESTORS WHO MAY BE INTERESTED IN EACH CLASS.
CLASS A: FRONT-END
SALES CHARGE
FOR ALL INVESTORS, PARTICULARLY THOSE INVESTING A SUBSTANTIAL AMOUNT OR WHO PLAN
TO HOLD THE SHARES FOR A LONG PERIOD OF TIME.
SALES CHARGE ON EACH PURCHASE OF 3.75% OR LESS DEPENDING ON THE AMOUNT YOU
INVEST.
CLASS A SHARES HAVE AN ANNUAL 12B-1 FEE OF UP TO 0.50%
CLASS A SHARES HAVE LOWER ANNUAL EXPENSES DUE TO A LOWER 12B-1 FEE.
PURCHASES OF CLASS A SHARES AT NAV FOR ACCOUNTS WITH $1,000,000 OR MORE WILL BE
SUBJECT TO A 1.0% DEFERRED SALES CHARGE FOR 1 YEAR.
CLASS B: DEFERRED
SALES CHARGE FOR 4 YEARS
FOR INVESTORS WHO PLAN TO HOLD THE SHARES AT LEAST 4 YEARS. THE EXPENSES OF THIS
CLASS ARE HIGHER THAN CLASS A BECAUSE OF THE 12B-1 FEE.
NO SALES CHARGE ON EACH PURCHASE, BUT IF YOU SELL YOUR SHARES WITHIN 4 YEARS,
YOU WILL PAY A DEFERRED SALES CHARGE OF 4% OR LESS ON SHARES YOU SELL.
CLASS B SHARES HAVE AN ANNUAL 12B-1 FEE OF 1.00%
YOUR SHARES WILL AUTOMATICALLY CONVERT TO CLASS A SHARES AFTER 6 YEARS REDUCING
YOUR FUTURE ANNUAL EXPENSES
IF YOU ARE INVESTING MORE THAN $250,000, YOU SHOULD CONSIDER INVESTING IN
CLASS A.
<PAGE>
CLASS A
IF YOU CHOOSE CLASS A, YOU WILL PAY A SALES CHARGE AT THE TIME OF EACH PURCHASE.
THIS TABLE SHOWS THE CHARGES BOTH AS A PERCENTAGE OF OFFERING PRICE AND AS A
PERCENTAGE OF THE AMOUNT YOU INVEST. THE TERM "OFFERING PRICE" INCLUDES THE
FRONT-END SALES CHARGE. IF YOU INVEST MORE, THE SALES CHARGE WILL BE LOWER. FOR
EXAMPLE, IF YOU INVEST MORE THAN $50,0006, OR IF YOUR CUMULATIVE PURCHASES OR
THE VALUE IN YOUR ACCOUNT IS MORE THAN $50,000, THEN THE SALES CHARGE IS REDUCED
TO 3.00%
YOUR INVESTMENT IN SALES CHARGE % % OF AMT.
CLASS A SHARES OF OFFERING PRICE INVESTED
LESS THAN $50,000 3.75% 3.90%
$50,000 BUT LESS THAN $100,000 3.00% 3.09%
$100,000 BUT LESS THAN $250,000 2.25% 2.30%
$250,000 BUT LESS THAN $500,000 1.75% 1.78%
$500,000 BUT LESS THAN $1,000,000 1.00% 1.01%
$1,000,000 AND OVER NONE* NONE*
6 THIS IS CALLED "RIGHTS OF ACCUMULATION." THE SALES CHARGE IS CALCULATED BY
TAKING INTO ACCOUNT NOT ONLY THE DOLLAR AMOUNT OF THE NEW PURCHASE OF
SHARES, BUT ALSO THE HIGHER OF COST OR CURRENT VALUE OF SHARES YOU HAVE
PREVIOUSLY PURCHASED IN CALVERT GROUP FUNDS THAT IMPOSE SALES CHARGES. THIS
AUTOMATICALLY APPLIES TO YOUR ACCOUNT FOR EACH NEW PURCHASE OF CLASS A SHARES.
* PURCHASES OF CLASS A SHARES AT NAV FOR ACCOUNTS WITH $1,000,000 OR MORE
ARE SUBJECT TO A 1 YEAR CDSC OF 1.00%. (SEE THE "CALCULATION OF
CONTINGENT DEFERRED SALES CHARGE").
THE CLASS A FRONT-END SALES CHARGE MAY BE WAIVED FOR CERTAIN PURCHASES OR
INVESTORS, SUCH AS PARTICIPANTS IN CERTAIN GROUP RETIREMENT PLANS OR OTHER
QUALIFIED GROUPS AND CLIENTS OF REGISTERED INVESTMENT ADVISERS. FOR DETAILS ON
THESE AND OTHER PURCHASES THAT MAY QUALIFY FOR A REDUCED SALES CHARGE, SEE
EXHIBIT A.
CLASS B
IF YOU CHOOSE CLASS B, THERE IS NO FRONT-END SALES CHARGE LIKE CLASS A, BUT IF
YOU SELL THE SHARES WITHIN THE FIRST 4 YEARS, YOU WILL HAVE TO PAY A "CONTINGENT
DEFERRED" SALES CHARGE ("CDSC"). THIS MEANS THAT YOU DO NOT HAVE TO PAY THE
SALES CHARGE UNLESS YOU SELL YOUR SHARES WITHIN THE FIRST 4 YEARS AFTER
PURCHASE. KEEP IN MIND THAT THE LONGER YOU HOLD THE SHARES THE LESS YOU WILL
HAVE TO PAY IN DEFERRED SALES CHARGES.
TIME SINCE PURCHASE CDSC %
1ST YEAR 4%
2ND YEAR 3%
3RD YEAR 2%
4TH YEAR 1%
AFTER 5 YEARS NONE
<PAGE>
CALCULATION OF CONTINGENT DEFERRED SALES CHARGE AND
WAIVER OF SALES CHARGE
THE CDSC WILL NOT BE CHARGED ON SHARES YOU RECEIVED AS DIVIDENDS OR FROM
CAPITAL GAINS DISTRIBUTIONS OR ON ANY CAPITAL APPRECIATION (GAIN IN THE VALUE)
OF SHARES THAT ARE SOLD.
SHARES THAT ARE NOT SUBJECT TO THE CDSC WILL BE REDEEMED FIRST, FOLLOWED BY
SHARES YOU HAVE HELD THE LONGEST. THE CDSC IS CALCULATED BY DETERMINING THE
SHARE VALUE AT BOTH THE TIME OF PURCHASE AND REDEMPTION AND THEN MULTIPLYING
WHICHEVER VALUE IS LESS BY THE PERCENTAGE THAT APPLIES AS SHOWN ABOVE. IF YOU
CHOOSE TO SELL ONLY PART OF YOUR SHARES, THE CAPITAL APPRECIATION FOR THOSE
SHARES ONLY IS INCLUDED IN THE CALCULATION, RATHER THAN THE CAPITAL APPRECIATION
FOR THE ENTIRE ACCOUNT.
THE CDSC ON CLASS B SHARES WILL BE WAIVED IN THE FOLLOWING CIRCUMSTANCES:
- - REDEMPTION UPON THE DEATH OR DISABILITY OF THE SHAREHOLDER, PLAN
PARTICIPANT, OR BENEFICIARY.7
- - MINIMUM REQUIRED DISTRIBUTIONS FROM RETIREMENT PLAN ACCOUNTS FOR
SHAREHOLDERS 701/2 AND OLDER.8
- - THE RETURN OF AN EXCESS CONTRIBUTION OR DEFERRAL AMOUNTS, PURSUANT TO
SECTIONS 408(D)(4) OR (5), 401(K)(8), 402(G)(2), OR 401(M)(6) OF THE INTERNAL
REVENUE CODE.
- - INVOLUNTARY REDEMPTIONS OF ACCOUNTS UNDER PROCEDURES SET FORTH BY THE
FUND'S BOARD OF TRUSTEES.
- - A SINGLE ANNUAL WITHDRAWAL UNDER A SYSTEMATIC WITHDRAWAL PLAN OF UP TO 10%
PER YEAR OF THE SHAREHOLDER'S ACCOUNT BALANCE.9
7 "DISABILITY" MEANS A TOTAL DISABILITY AS EVIDENCED BY A DETERMINATION BY
THE FEDERAL SOCIAL SECURITY ADMINISTRATION.
8 THE MAXIMUM AMOUNT SUBJECT TO THIS WAIVER IS BASED ONLY UPON THE
SHAREHOLDER'S CALVERT GROUP RETIREMENT ACCOUNTS.
9 THIS SYSTEMATIC WITHDRAW PLAN REQUIRES A MINIMUM ACCOUNT BALANCE OF
$50,000 TO BE ESTABLISHED.
DISTRIBUTION AND SERVICE FEES
THE FUND HAS ADOPTED A PLAN UNDER RULE 12B-1 OF THE INVESTMENT COMPANY ACT OF
1940 THAT ALLOWS IT TO PAY DISTRIBUTION FEES FOR THE SALE AND DISTRIBUTION OF
ITS SHARES. THE DISTRIBUTION PLAN ALSO PAYS SERVICE FEES TO PERSONS (SUCH AS
YOUR FINANCIAL PROFESSIONAL) FOR SERVICES PROVIDED TO SHAREHOLDERS. BECAUSE
THESE FEES ARE PAID OUT OF A FUND'S ASSETS ON AN ONGOING BASIS, OVER TIME, THESE
FEES WILL INCREASE THE COST OF YOUR INVESTMENT AND MAY COST YOU MORE THAN PAYING
OTHER TYPES OF SALES CHARGES. PLEASE SEE EXHIBIT B FOR MORE SERVICE FEE
INFORMATION.
THE TABLE BELOW SHOWS THE MAXIMUM ANNUAL PERCENTAGE PAYABLE UNDER THE
DISTRIBUTION PLAN, AND THE AMOUNT ACTUALLY PAID BY THE FUND FOR THE MOST RECENT
FISCAL YEAR. THE FEES ARE BASED ON AVERAGE DAILY NET ASSETS OF THE PARTICULAR
CLASS.
MAXIMUM PAYABLE UNDER PLAN/AMOUNT ACTUALLY PAID
CLASS A: 0.50% /0.15% CLASS B: 1.00% / 1.00%
<PAGE>
NEXT STEP - ACCOUNT APPLICATION
COMPLETE AND SIGN AN APPLICATION FOR EACH NEW ACCOUNT. PLEASE SPECIFY WHICH
CLASS YOU WISH TO PURCHASE. FOR MORE INFORMATION, CONTACT YOUR FINANCIAL
PROFESSIONAL OR OUR SHAREHOLDER SERVICES DEPARTMENT AT 800-368-2748.
MINIMUM TO OPEN AN ACCOUNT MINIMUM ADDITIONAL INVESTMENTS
$2,000 $250
PLEASE MAKE YOUR CHECK PAYABLE
TO THE FUND AND MAIL IT TO:
NEW ACCOUNTS: SUBSEQUENT INVESTMENTS:
(INCLUDE APPLICATION) (INCLUDE INVESTMENT SLIP)
CALVERT GROUP CALVERT GROUP
PO BOX 219544 PO BOX 219739
KANSAS CITY, MO KANSAS CITY, MO
64121-9544 64121-9739
BY REGISTERED, CALVERT GROUP
CERTIFIED, OR C/O NFDS
OVERNIGHT MAIL 330 WEST 9TH STREET
KANSAS CITY, MO 64105-1807
AT THE CALVERT OFFICE: VISIT THE CALVERT OFFICE TO MAKE
INVESTMENTS BY CHECK. SEE THE BACK
COVER PAGE FOR THE ADDRESS.
IMPORTANT - HOW SHARES ARE PRICED
THE PRICE OF SHARES IS BASED ON THE FUND'S NET ASSET VALUE ("NAV"). NAV IS
COMPUTED BY ADDING THE VALUE OF A FUND'S HOLDINGS PLUS OTHER ASSETS, SUBTRACTING
LIABILITIES, AND THEN DIVIDING THE RESULT BY THE NUMBER OF SHARES OUTSTANDING.
THE NAV OF EACH CLASS WILL BE DIFFERENT, DEPENDING ON THE NUMBER OF SHARES
OUTSTANDING FOR EACH CLASS.
PORTFOLIO SECURITIES AND OTHER ASSETS ARE VALUED BASED ON MARKET QUOTATIONS,
EXCEPT THAT SECURITIES MATURING WITHIN 60 DAYS ARE VALUED AT AMORTIZED COST. IF
MARKET QUOTATIONS ARE NOT READILY AVAILABLE, SECURITIES ARE VALUED BY A METHOD
THAT THE FUND'S BOARD OF TRUSTEES BELIEVES ACCURATELY REFLECTS FAIR VALUE.
THE NAV IS CALCULATED AS OF THE CLOSE OF EACH BUSINESS DAY, WHICH COINCIDES WITH
THE CLOSING OF THE REGULAR SESSION OF THE NEW YORK STOCK EXCHANGE ("NYSE")
(NORMALLY 4 P.M. ET). THE FUND IS OPEN FOR BUSINESS EACH DAY THE NYSE IS OPEN.
PLEASE NOTE THAT THERE ARE SOME FEDERAL HOLIDAYS, HOWEVER, SUCH AS COLUMBUS DAY
AND VETERANS' DAY, WHEN THE NYSE IS OPEN AND THE FUND IS OPEN BUT PURCHASES
CANNOT BE RECEIVED BECAUSE THE BANKS AND POST OFFICES ARE CLOSED.
<PAGE>
THE FUND MAY HOLD SECURITIES THAT ARE PRIMARILY LISTED ON FOREIGN EXCHANGES THAT
TRADE ON DAYS WHEN THE NYSE IS CLOSED. THE FUND DOES NOT PRICE SHARES ON DAYS
WHEN THE NYSE IS CLOSED, EVEN IF FOREIGN MARKETS MAY BE OPEN. AS A RESULT, THE
VALUE OF THE FUND'S SHARES MAY CHANGE ON DAYS WHEN YOU WILL NOT BE ABLE TO BUY
OR SELL YOUR SHARES.
WHEN YOUR ACCOUNT WILL BE CREDITED
YOUR PURCHASE WILL BE PROCESSED AT THE NEXT NAV CALCULATED AFTER YOUR ORDER IS
RECEIVED AND ACCEPTED. ALL OF YOUR PURCHASES MUST BE MADE IN US DOLLARS. NO CASH
OR THIRD PARTY CHECKS WILL BE ACCEPTED. NO CREDIT CARD OR CREDIT LOAN CHECKS
WILL BE ACCEPTED. THE FUND RESERVES THE RIGHT TO SUSPEND THE OFFERING OF SHARES
FOR A PERIOD OF TIME OR TO REJECT ANY SPECIFIC PURCHASE ORDER. AS A CONVENIENCE,
CHECK PURCHASES RECEIVED AT CALVERT'S OFFICE IN BETHESDA, MARYLAND WILL BE SENT
BY OVERNIGHT DELIVERY TO THE TRANSFER AGENT AND WILL BE CREDITED THE NEXT
BUSINESS DAY UPON RECEIPT. ANY CHECK PURCHASE RECEIVED WITHOUT AN INVESTMENT
SLIP MAY CAUSE DELAYED CREDITING. ANY PURCHASE LESS THAN THE $250 MINIMUM FOR
SUBSEQUENT INVESTMENTS WILL BE CHARGED A SERVICE FEE OF $3. IF YOUR CHECK DOES
NOT CLEAR YOUR BANK, YOUR PURCHASE WILL BE CANCELED AND YOU WILL BE CHARGED A
$25 FEE PLUS ANY COSTS INCURRED. ALL PURCHASES WILL BE CONFIRMED AND CREDITED TO
YOUR ACCOUNT IN FULL AND FRACTIONAL SHARES (ROUNDED TO THE NEAREST 1/1000TH OF A
SHARE).
OTHER CALVERT GROUP FEATURES
CALVERT INFORMATION NETWORK
FOR 24 HOUR PERFORMANCE AND ACCOUNT INFORMATION CALL 800-368-2745 OR VISIT
HTTP://WWW.CALVERT.COM. YOU CAN OBTAIN CURRENT PERFORMANCE AND PRICING
INFORMATION, VERIFY ACCOUNT BALANCES, AND AUTHORIZE CERTAIN TRANSACTIONS WITH
THE CONVENIENCE OF ONE PHONE CALL, 24 HOURS A DAY.
ACCOUNT SERVICES
BY SIGNING UP FOR SERVICES WHEN YOU OPEN YOUR ACCOUNT, YOU AVOID HAVING TO
OBTAIN A SIGNATURE GUARANTEE. IF YOU WISH TO ADD SERVICES AT A LATER DATE, A
SIGNATURE GUARANTEE TO VERIFY YOUR SIGNATURE MAY BE OBTAINED FROM ANY BANK,
TRUST COMPANY AND SAVINGS AND LOAN ASSOCIATION, CREDIT UNION, BROKER-DEALER FIRM
OR MEMBER OF A DOMESTIC STOCK EXCHANGE. A NOTARY PUBLIC CANNOT PROVIDE A
SIGNATURE GUARANTEE.
CALVERT MONEY CONTROLLER
CALVERT MONEY CONTROLLER ALLOWS YOU TO PURCHASE OR SELL SHARES BY ELECTRONIC
FUNDS TRANSFER WITHOUT THE TIME DELAY OF MAILING A CHECK OR THE ADDED EXPENSE OF
A WIRE. USE THIS SERVICE TO TRANSFER UP TO $300,000 ELECTRONICALLY. ALLOW ONE OR
TWO BUSINESS DAYS AFTER YOU PLACE YOUR REQUEST FOR THE TRANSFER TO TAKE PLACE.
MONEY TRANSFERRED TO PURCHASE NEW SHARES WILL BE SUBJECT TO A HOLD OF UP TO 10
<PAGE>
BUSINESS DAYS BEFORE REDEMPTION REQUESTS WILL BE HONORED. TRANSACTION REQUESTS
MUST BE RECEIVED BY 4 P.M. ET. YOU MAY REQUEST THIS SERVICE ON YOUR INITIAL
ACCOUNT APPLICATION. CALVERT MONEY CONTROLLER TRANSACTIONS RETURNED FOR
INSUFFICIENT FUNDS WILL INCUR A $25 CHARGE.
TELEPHONE TRANSACTIONS
YOU MAY PURCHASE, REDEEM, OR EXCHANGE SHARES, WIRE FUNDS AND USE CALVERT MONEY
CONTROLLER BY TELEPHONE IF YOU HAVE PRE-AUTHORIZED SERVICE INSTRUCTIONS. YOU
RECEIVE TELEPHONE PRIVILEGES AUTOMATICALLY WHEN YOU OPEN YOUR ACCOUNT UNLESS YOU
ELECT OTHERWISE. FOR OUR MUTUAL PROTECTION, THE FUND, THE SHAREHOLDER SERVICING
AGENT AND THEIR AFFILIATES USE PRECAUTIONS SUCH AS VERIFYING SHAREHOLDER
IDENTITY AND RECORDING TELEPHONE CALLS TO CONFIRM INSTRUCTIONS GIVEN BY PHONE. A
CONFIRMATION STATEMENT IS SENT FOR MOST TRANSACTIONS; PLEASE REVIEW THIS
STATEMENT AND VERIFY THE ACCURACY OF YOUR TRANSACTION IMMEDIATELY.
EXCHANGES
CALVERT GROUP OFFERS A WIDE VARIETY OF INVESTMENT OPTIONS THAT INCLUDES COMMON
STOCK FUNDS, TAX-EXEMPT AND CORPORATE BOND FUNDS, AND MONEY MARKET FUNDS (CALL
YOUR BROKER OR CALVERT REPRESENTATIVE FOR MORE INFORMATION). WE MAKE IT EASY FOR
YOU TO PURCHASE SHARES IN OTHER CALVERT FUNDS IF YOUR INVESTMENT GOALS CHANGE.
THE EXCHANGE PRIVILEGE OFFERS FLEXIBILITY BY ALLOWING YOU TO EXCHANGE SHARES ON
WHICH YOU HAVE ALREADY PAID A SALES CHARGE FROM ONE MUTUAL FUND TO ANOTHER AT NO
ADDITIONAL CHARGE.
COMPLETE AND SIGN AN ACCOUNT APPLICATION, TAKING CARE TO REGISTER YOUR NEW
ACCOUNT IN THE SAME NAME AND TAXPAYER IDENTIFICATION NUMBER AS YOUR EXISTING
CALVERT ACCOUNT(S). EXCHANGE INSTRUCTIONS MAY THEN BE GIVEN BY TELEPHONE IF
TELEPHONE REDEMPTIONS HAVE BEEN AUTHORIZED AND THE SHARES ARE NOT IN CERTIFICATE
FORM.
BEFORE YOU MAKE AN EXCHANGE, PLEASE NOTE THE FOLLOWING:
EACH EXCHANGE REPRESENTS THE SALE OF SHARES OF ONE FUND AND THE PURCHASE OF
SHARES OF ANOTHER. THEREFORE, YOU COULD REALIZE A TAXABLE GAIN OR LOSS.
YOU MAY EXCHANGE SHARES ACQUIRED BY REINVESTMENT OF DIVIDENDS OR DISTRIBUTIONS
INTO ANOTHER CALVERT FUND AT NO ADDITIONAL CHARGE.
SHARES MAY ONLY BE EXCHANGED FOR SHARES OF THE SAME CLASS OF ANOTHER CALVERT
FUND.
NO CDSC IS IMPOSED ON EXCHANGES OF SHARES SUBJECT TO A CDSC AT THE TIME OF THE
EXCHANGE. THE APPLICABLE CDSC IS IMPOSED AT THE TIME THE SHARES ACQUIRED BY THE
EXCHANGE ARE REDEEMED.
<PAGE>
EXCHANGE REQUESTS WILL NOT BE ACCEPTED ON ANY DAY WHEN CALVERT IS OPEN BUT THE
FUND'S CUSTODIAN BANK IS CLOSED (E.G., COLUMBUS DAY AND VETERAN'S DAY); THESE
EXCHANGE REQUESTS WILL BE PROCESSED THE NEXT DAY THE FUND'S CUSTODIAN BANK IS
OPEN.
THE FUND AND THE DISTRIBUTOR RESERVE THE RIGHT AT ANY TIME TO REJECT OR CANCEL
ANY PART OF ANY PURCHASE OR EXCHANGE ORDER; MODIFY ANY TERMS OR CONDITIONS OF
PURCHASE OF SHARES OF THE FUND; OR WITHDRAW ALL OR ANY PART OF THE OFFERING MADE
BY THIS PROSPECTUS. TO PROTECT THE INTERESTS OF INVESTORS, THE FUND AND THE
DISTRIBUTOR MAY REJECT ANY ORDER CONSIDERED MARKET-TIMING ACTIVITY.
THE FUND RESERVES THE RIGHT TO TERMINATE OR MODIFY THE EXCHANGE PRIVILEGE WITH
60 DAYS' WRITTEN NOTICE.
ELECTRONIC DELIVERY OF PROSPECTUSES AND SHAREHOLDER REPORTS
YOU MAY REQUEST TO RECEIVE ELECTRONIC DELIVERY OF PROSPECTUSES AND ANNUAL AND
SEMI ANNUAL REPORTS.
COMBINED GENERAL MAILINGS (HOUSEHOLDING)
MULTIPLE ACCOUNTS WITH THE SAME SOCIAL SECURITY NUMBER WILL RECEIVE ONE MAILING
PER HOUSEHOLD OF INFORMATION SUCH AS PROSPECTUSES AND SEMI-ANNUAL AND ANNUAL
REPORTS. YOU MAY REQUEST FURTHER GROUPING OF ACCOUNTS TO RECEIVE FEWER MAILINGS.
SEPARATE STATEMENTS WILL BE GENERATED FOR EACH SEPARATE ACCOUNT AND WILL BE
MAILED IN ONE ENVELOPE FOR EACH COMBINATION ABOVE.
SPECIAL SERVICES AND CHARGES
THE FUND PAYS FOR SHAREHOLDER SERVICES BUT NOT FOR SPECIAL SERVICES THAT ARE
REQUIRED BY A FEW SHAREHOLDERS, SUCH AS A REQUEST FOR A HISTORICAL TRANSCRIPT OF
AN ACCOUNT OR A STOP PAYMENT ON A DRAFT. YOU MAY BE REQUIRED TO PAY A FEE FOR
THESE SPECIAL SERVICES; FOR EXAMPLE, THE FEE FOR STOP PAYMENTS IS $25.
IF YOU ARE PURCHASING SHARES THROUGH A PROGRAM OF SERVICES OFFERED BY A
BROKER/DEALER OR FINANCIAL INSTITUTION, YOU SHOULD READ THE PROGRAM MATERIALS
TOGETHER WITH THIS PROSPECTUS. CERTAIN FEATURES MAY BE MODIFIED IN THESE
PROGRAMS. INVESTORS MAY BE CHARGED A FEE IF THEY EFFECT TRANSACTIONS IN FUND
SHARES THROUGH A BROKER OR AGENT.
MINIMUM ACCOUNT BALANCE
PLEASE MAINTAIN A BALANCE IN EACH OF YOUR FUND ACCOUNTS OF AT LEAST $1,000 PER
CLASS. IF THE BALANCE IN YOUR ACCOUNT FALLS BELOW THE MINIMUM DURING A MONTH,
THE ACCOUNT MAY BE CLOSED AND THE PROCEEDS MAILED TO THE ADDRESS OF RECORD. YOU
WILL RECEIVE NOTICE THAT YOUR ACCOUNT IS BELOW THE MINIMUM, AND WILL BE CLOSED
IF THE BALANCE IS NOT BROUGHT UP TO THE REQUIRED MINIMUM WITHIN 30 DAYS.
<PAGE>
DIVIDENDS, CAPITAL GAINS, AND TAXES
THE FUND PAYS DIVIDENDS FROM ITS NET INVESTMENT INCOME ON A MONTHLY BASIS. 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 FUND DOES NOT ANTICIPATE MAKING ANY SUCH DISTRIBUTIONS UNLESS
AVAILABLE CAPITAL LOSS CARRYOVERS HAVE BEEN USED OR HAVE EXPIRED. DIVIDEND AND
DISTRIBUTION PAYMENTS WILL VARY BETWEEN CLASSES.
DIVIDEND PAYMENT OPTIONS
DIVIDENDS AND ANY DISTRIBUTIONS ARE AUTOMATICALLY REINVESTED IN THE SAME FUND AT
NAV, UNLESS YOU ELECT TO HAVE AMOUNTS OF $10 OR MORE PAID IN CASH, BY CHECK OR
BY CALVERT MONEY CONTROLLER. DIVIDENDS AND DISTRIBUTIONS FROM ANY CALVERT GROUP
FUND MAY BE AUTOMATICALLY INVESTED IN AN IDENTICALLY REGISTERED ACCOUNT IN ANY
OTHER CALVERT GROUP FUND AT NAV. IF REINVESTED IN THE SAME ACCOUNT, NEW SHARES
WILL BE PURCHASED AT NAV ON THE REINVESTMENT DATE, WHICH IS GENERALLY 1 TO 3
DAYS PRIOR TO THE PAYMENT DATE. YOU MUST NOTIFY THE FUND IN WRITING TO CHANGE
YOUR PAYMENT OPTIONS. IF YOU ELECT TO HAVE DIVIDENDS AND/OR DISTRIBUTIONS PAID
IN CASH, AND THE US POSTAL SERVICE RETURNS THE CHECK AS UNDELIVERABLE, IT, AS
WELL AS FUTURE DIVIDENDS AND DISTRIBUTIONS, WILL BE REINVESTED IN ADDITIONAL
SHARES. NO DIVIDENDS WILL ACCRUE ON AMOUNTS REPRESENTED BY UNCASHED DISTRIBUTION
OR REDEMPTION CHECKS.
BUYING A DIVIDEND
AT THE TIME OF PURCHASE, THE SHARE PRICE OF EACH CLASS MAY REFLECT UNDISTRIBUTED
INCOME, CAPITAL GAINS OR UNREALIZED APPRECIATION OF SECURITIES. ANY INCOME OR
CAPITAL GAINS FROM THESE AMOUNTS WHICH ARE LATER DISTRIBUTED TO YOU ARE FULLY
TAXABLE. ON THE RECORD DATE FOR A DISTRIBUTION, SHARE VALUE IS REDUCED BY THE
AMOUNT OF THE DISTRIBUTION. IF YOU BUY SHARES JUST BEFORE THE RECORD DATE
("BUYING A DIVIDEND") YOU WILL PAY THE FULL PRICE FOR THE SHARES AND THEN
RECEIVE A PORTION OF THE PRICE BACK AS A TAXABLE DISTRIBUTION.
FEDERAL TAXES
IN JANUARY, THE 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.
<PAGE>
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 FUND WILL MAIL YOU FORM
1099-B INDICATING THE TOTAL AMOUNT OF ALL SALES, INCLUDING EXCHANGES. YOU SHOULD
KEEP YOUR ANNUAL YEAR-END ACCOUNT STATEMENTS TO DETERMINE THE COST (BASIS) OF
THE SHARES TO REPORT ON YOUR TAX RETURNS.
OTHER TAX INFORMATION
IN ADDITION TO FEDERAL TAXES, YOU MAY BE SUBJECT TO STATE OR LOCAL TAXES ON YOUR
INVESTMENT, DEPENDING ON THE LAWS IN YOUR AREA. YOU WILL BE NOTIFIED TO THE
EXTENT, IF ANY, THAT DIVIDENDS REFLECT INTEREST RECEIVED FROM US GOVERNMENT
SECURITIES. SUCH DIVIDENDS MAY BE EXEMPT FROM CERTAIN STATE INCOME TAXES.
TAXPAYER IDENTIFICATION NUMBER
IF WE DO NOT HAVE YOUR CORRECT SOCIAL SECURITY OR TAXPAYER IDENTIFICATION NUMBER
("TIN") AND A SIGNED CERTIFIED APPLICATION OR FORM W-9, FEDERAL LAW REQUIRES US
TO WITHHOLD 31% OF YOUR REPORTABLE DIVIDENDS, AND POSSIBLY 31% OF CERTAIN
REDEMPTIONS. IN ADDITION, YOU MAY BE SUBJECT TO A FINE BY THE INTERNAL REVENUE
SERVICE. YOU WILL ALSO BE PROHIBITED FROM OPENING ANOTHER ACCOUNT BY EXCHANGE.
IF THIS TIN INFORMATION IS NOT RECEIVED WITHIN 60 DAYS AFTER YOUR ACCOUNT IS
ESTABLISHED, YOUR ACCOUNT MAY BE REDEEMED (CLOSED) AT THE CURRENT NAV ON THE
DATE OF REDEMPTION. CALVERT GROUP RESERVES THE RIGHT TO REJECT ANY NEW ACCOUNT
OR ANY PURCHASE ORDER FOR FAILURE TO SUPPLY A CERTIFIED TIN.
HOW TO SELL SHARES
YOU MAY REDEEM ALL OR A PORTION OF YOUR SHARES ON ANY DAY YOUR FUND IS OPEN FOR
BUSINESS, PROVIDED THE AMOUNT REQUESTED IS NOT ON HOLD. WHEN YOU PURCHASE BY
CHECK OR WITH CALVERT MONEY CONTROLLER (ELECTRONIC FUNDS TRANSFER), THE PURCHASE
WILL BE ON HOLD FOR UP TO 10 BUSINESS DAYS FROM THE DATE OF RECEIPT. DURING THE
HOLD PERIOD, REDEMPTIONS PROCEEDS WILL NOT BE SENT UNTIL THE TRANSFER AGENT IS
REASONABLY SATISFIED THAT THE PURCHASE PAYMENT HAS BEEN COLLECTED.
YOUR SHARES WILL BE REDEEMED AT THE NEXT NAV CALCULATED AFTER YOUR REDEMPTION
REQUEST IS RECEIVED AND ACCEPTED (LESS ANY APPLICABLE CDSC). THE PROCEEDS WILL
NORMALLY BE SENT TO YOU ON THE NEXT BUSINESS DAY, BUT IF MAKING IMMEDIATE
PAYMENT COULD ADVERSELY AFFECT YOUR FUND, IT MAY TAKE UP TO SEVEN (7) DAYS TO
MAKE PAYMENT. CALVERT MONEY CONTROLLER REDEMPTIONS GENERALLY WILL BE CREDITED TO
YOUR BANK ACCOUNT BY THE SECOND BUSINESS DAY AFTER YOUR PHONE CALL. 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. PLEASE NOTE THAT THERE ARE SOME FEDERAL HOLIDAYS,
HOWEVER, SUCH AS COLUMBUS DAY AND VETERANS' DAY, WHEN THE NYSE IS OPEN AND THE
FUND IS OPEN BUT REDEMPTIONS CANNOT BE MAILED OR WIRED BECAUSE THE POST OFFICES
AND BANKS ARE CLOSED.
<PAGE>
FOLLOW THESE SUGGESTIONS TO ENSURE TIMELY PROCESSING OF YOUR REDEMPTION REQUEST:
BY TELEPHONE - CALL 800-368-2745
YOU MAY REDEEM SHARES FROM YOUR ACCOUNT BY TELEPHONE AND HAVE YOUR MONEY 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 219544, KANSAS CITY, MO 64121-9544
YOUR LETTER SHOULD INCLUDE YOUR ACCOUNT NUMBER, NAME OF THE 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.
SYSTEMATIC CHECK REDEMPTIONS
IF YOU MAINTAIN AN ACCOUNT WITH A BALANCE OF $10,000 OR MORE, YOU MAY HAVE UP TO
TWO (2) REDEMPTION CHECKS FOR A FIXED AMOUNT SENT TO YOU ON THE 15TH OF THE
MONTH, SIMPLY BY SENDING A LETTER WITH ALL INFORMATION, INCLUDING YOUR ACCOUNT
NUMBER, AND THE DOLLAR AMOUNT ($100 MINIMUM). IF YOU WOULD LIKE A REGULAR CHECK
MAILED TO ANOTHER PERSON OR PLACE, YOUR LETTER MUST BE SIGNATURE
GUARANTEED. UNLESS THEY OTHERWISE QUALIFY FOR A WAIVER, CLASS B SHARES REDEEMED
BY SYSTEMATIC CHECK REDEMPTION WILL BE SUBJECT TO THE CONTINGENT DEFERRED SALES
CHARGE.
CORPORATIONS AND ASSOCIATIONS
YOUR LETTER OF INSTRUCTION AND CORPORATE RESOLUTION SHOULD BE SIGNED BY
PERSON(S) AUTHORIZED TO ACT ON THE ACCOUNT, ACCOMPANIED BY SIGNATURE
GUARANTEE(S).
TRUSTS
YOUR LETTER OF INSTRUCTION SHOULD BE SIGNED BY THE TRUSTEE(S) (AS TRUSTEE), WITH
A SIGNATURE GUARANTEE. (IF THE TRUSTEE'S NAME IS NOT REGISTERED ON YOUR ACCOUNT,
PLEASE PROVIDE A COPY OF THE TRUST DOCUMENT, CERTIFIED WITHIN THE LAST 60 DAYS.)
THROUGH YOUR DEALER
YOUR DEALER MUST RECEIVE YOUR REQUEST BEFORE THE CLOSE OF REGULAR TRADING ON THE
NYSE TO RECEIVE THAT DAY'S NAV. YOUR DEALER WILL BE RESPONSIBLE FOR FURNISHING
ALL NECESSARY DOCUMENTATION TO CALVERT GROUP AND MAY CHARGE YOU FOR SERVICES
PROVIDED.
<PAGE>
FINANCIAL HIGHLIGHTS
THE FINANCIAL HIGHLIGHTS TABLE IS INTENDED TO HELP YOU UNDERSTAND THE FUND'S
FINANCIAL PERFORMANCE FOR THE PAST FIVE (5) FISCAL YEARS. THE FUND'S FISCAL YEAR
END IS SEPTEMBER 30. CERTAIN INFORMATION REFLECTS FINANCIAL RESULTS FOR A SINGLE
SHARE BY CLASS. THE TOTAL RETURNS IN THE TABLE REPRESENT THE RATE THAT AN
INVESTOR WOULD HAVE EARNED (OR LOST) ON AN INVESTMENT IN A FUND (ASSUMING
REINVESTMENT OF ALL DIVIDENDS AND DISTRIBUTIONS), AND DOES NOT REFLECT ANY
APPLICABLE FRONT- OR BACK-END SALES CHARGE. THIS INFORMATION HAS BEEN AUDITED BY
PRICEWATERHOUSECOOPERS LLP WHOSE REPORT, ALONG WITH THE FUND'S FINANCIAL
STATEMENTS, ARE INCLUDED IN THE FUND'S ANNUAL REPORT, WHICH IS AVAILABLE UPON
REQUEST.
<PAGE>
FINANCIAL HIGHLIGHTS
YEARS ENDED SEPTEMBER 30,
CLASS A SHARES 1999
NET ASSET VALUE, BEGINNING $17.17
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .99
NET REALIZED AND UNREALIZED
GAIN (LOSS) .74
TOTAL FROM INVESTMENT OPERATIONS 1.73
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.99)
NET REALIZED GAIN (.83)
TOTAL DISTRIBUTIONS 1.82
TOTAL INCREASE (DECREASE) IN
NET ASSET VALUE (.09)
NET ASSET VALUE, ENDING $17.08
TOTAL RETURN* 10.68%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME 6.01%
TOTAL EXPENSES 1.32%
EXPENSES BEFORE OFFSETS 1.32%
NET EXPENSES 1.23%
PORTFOLIO TURNOVER 3,454%
NET ASSETS, ENDING (IN THOUSANDS) $91,764
NUMBER OF SHARES OUTSTANDING,
ENDING (IN THOUSANDS) 5,372
YEARS ENDED SEPTEMBER 30,
CLASS A SHARES 1998 1997 1996
NET ASSET VALUE, BEGINNING $17.20 $16.47 $16.82
INCOME FROM INVESTMENT
OPERATIONS
NET INVESTMENT INCOME 1.02 1.02 1.01
NET REALIZED AND UNREALIZED
GAIN (LOSS) .61 .74 (.32)
TOTAL FROM INVESTMENT
OPERATIONS 1.63 1.76 .69
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (1.01) (1.02) (1.01)
NET REALIZED GAIN (.65) (.01) -
IN EXCESS OF NET REALIZED GAIN - - (.03)
TOTAL DISTRIBUTIONS (1.66) (1.03) (1.04)
TOTAL INCREASE (DECREASE) IN NET
ASSET VALUE (.03) .73 (.35)
NET ASSET VALUE, ENDING $17.17 $17.20 $16.47
TOTAL RETURN* 9.92% 11.03% 4.21%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME 5.96% 6.04% 6.02%
TOTAL EXPENSES 1.43% 1.33% 1.26%
EXPENSES BEFORE OFFSETS 1.82% 1.33% 1.26%
NET EXPENSES 1.36% 1.26% 1.23%
PORTFOLIO TURNOVER 3,461% 2,961% 153%
NET ASSETS, ENDING
(IN THOUSANDS) $41,607 $39,302 $44,431
NUMBER OF SHARES OUTSTANDING,
ENDING (IN THOUSANDS) 2,423 2,285 2,698
<PAGE>
FINANCIAL HIGHLIGHTS - CONTINUED
CALVERT INCOME FUND
YEARS ENDED SEPTEMBER 30,
CLASS A SHARES 1995
NET ASSET VALUE, BEGINNING $15.68
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME 1.11
NET REALIZED AND UNREALIZED
GAIN (LOSS) 1.14
TOTAL FROM INVESTMENT OPERATIONS 2.25
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (1.11)
NET REALIZED GAIN -
TOTAL DISTRIBUTIONS (1.11)
TOTAL INCREASE (DECREASE) IN
NET ASSET VALUE 1.14
NET ASSET VALUE, ENDING $16.82
TOTAL RETURN* 14.90%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME 6.89%
TOTAL EXPENSES + 1.26%
EXPENSES BEFORE OFFSETS 1.23%
NET EXPENSES 1.23%
PORTFOLIO TURNOVER 135%
NET ASSETS, ENDING (IN THOUSANDS) $42,637
NUMBER OF SHARES OUTSTANDING,
ENDING (IN THOUSANDS) 2,535
<PAGE>
FINANCIAL HIGHLIGHTS - CONTINUED
CALVERT INCOME FUND
PERIODS ENDED
OCT. 29, SEPT. 30,
CLASS C SHARES 1996 1996
NET ASSET VALUE, BEGINNING $16.19 $16.56
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .01 .74
NET REALIZED AND UNREALIZED GAIN (LOSS) .31 (.42)
TOTAL FROM INVESTMENT OPERATIONS .32 .32
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.04) (.66)
IN EXCESS OF NET REALIZED GAIN - (.03)
TOTAL DISTRIBUTIONS (.04) (.69)
TOTAL INCREASE (DECREASE) IN NET
ASSET VALUE .28 (.37)
NET ASSET VALUE, ENDING $16.47 $16.19
TOTAL RETURN* 2.01% 1.96%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME 3.65%(A) 3.96%
TOTAL EXPENSES+ 3.29%(A) 3.37%
NET EXPENSES 3.26%(A) 3.34%
EXPENSES REIMBURSED .63%(A) -
PORTFOLIO TURNOVER 2% 153%
NET ASSETS, ENDING (IN THOUSANDS) $1,064 $1,379
NUMBER OF SHARES OUTSTANDING,
ENDING (IN THOUSANDS) 65 85
YEAR ENDED
SEPTEMBER 30,
CLASS B SHARES 1999 ^^
NET ASSET VALUE, BEGINNING $17.02
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .13
NET REALIZED AND UNREALIZED GAIN (LOSS) .05
TOTAL FROM INVESTMENT OPERATIONS .18
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.14)
TOTAL DISTRIBUTIONS (.14)
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE .04
NET ASSET VALUE, ENDING $17.06
TOTAL RETURN* 1.06%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME 5.00% (A)
TOTAL EXPENSES 3.74% (A)
EXPENSES BEFORE OFFSETS 2.98% (A)
NET EXPENSES 2.91% (A)
PORTFOLIO TURNOVER 3,454%
NET ASSETS, ENDING (IN THOUSANDS) $1,231
NUMBER OF SHARES OUTSTANDING,
ENDING (IN THOUSANDS) 72
YEAR ENDED
SEPTEMBER 30,
CLASS I SHARES 1999 ^
NET ASSET VALUE, BEGINNING $16.73
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .63
NET REALIZED AND UNREALIZED GAIN (LOSS) .34
TOTAL FROM INVESTMENT OPERATIONS .97
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.64)
TOTAL DISTRIBUTIONS (.64)
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE .33
NET ASSET VALUE, ENDING $17.06
TOTAL RETURN* 5.83%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME 6.37% (A)
TOTAL EXPENSES 1.07% (A)
EXPENSES BEFORE OFFSETS .81% (A)
NET EXPENSES .72% (A)
PORTFOLIO TURNOVER 3,454%
NET ASSETS, ENDING (IN THOUSANDS) $6,442
NUMBER OF SHARES OUTSTANDING,
ENDING (IN THOUSANDS) 378
(A) ANNUALIZED
* TOTAL RETURN IS NOT ANNUALIZED AND DOES NOT REFLECT DEDUCTION OF ANY
FRONT-END OR DEFERRED SALES CHARGE.
^ FROM MARCH 1, 1999 INCEPTION.
^^ FROM AUGUST 1, 1999, INCEPTION.
<PAGE>
EXHIBIT A
REDUCED SALES CHARGES (CLASS A ONLY)
YOU MAY QUALIFY FOR A REDUCED SALES CHARGE THROUGH SEVERAL PURCHASE PLANS
AVAILABLE. YOU MUST NOTIFY THE FUND AT THE TIME OF PURCHASE TO TAKE ADVANTAGE OF
THE REDUCED SALES CHARGE.
RIGHTS OF ACCUMULATION CAN BE APPLIED TO SEVERAL ACCOUNTS
CLASS A SALES CHARGE BREAKPOINTS ARE AUTOMATICALLY CALCULATED FOR EACH ACCOUNT
BASED ON THE HIGHER OF COST OR CURRENT VALUE OF SHARES PREVIOUSLY PURCHASED.
THIS PRIVILEGE CAN BE APPLIED TO A FAMILY GROUP OR OTHER QUALIFIED GROUP10 UPON
REQUEST. SHARES COULD THEN BE PURCHASED AT THE REDUCED SALES CHARGE WHICH
APPLIES TO THE ENTIRE GROUP; THAT IS, BASED ON THE HIGHER OF COST OR CURRENT
VALUE OF SHARES PREVIOUSLY PURCHASED AND CURRENTLY HELD BY ALL THE MEMBERS OF
THE GROUP.
LETTER OF INTENT
IF YOU (OR YOUR GROUP, AS DESCRIBED ABOVE) PLAN TO PURCHASE $50,000 OR MORE OF
CALVERT FUND SHARES OVER THE NEXT 13 MONTHS, YOUR SALES CHARGE MAY BE REDUCED
THROUGH A "LETTER OF INTENT." YOU PAY THE LOWER SALES CHARGE APPLICABLE TO THE
TOTAL AMOUNT YOU PLAN TO INVEST OVER THE 13-MONTH PERIOD, EXCLUDING ANY MONEY
MARKET FUND PURCHASES. PART OF YOUR SHARES WILL BE HELD IN ESCROW, SO THAT IF
YOU DO NOT INVEST THE AMOUNT INDICATED, YOU WILL HAVE TO PAY THE SALES CHARGE
APPLICABLE TO THE SMALLER INVESTMENT ACTUALLY MADE. FOR MORE INFORMATION, SEE
THE SAI.
RETIREMENT PLANS UNDER SECTION 457, SECTION 403(B)(7), OR SECTION 401(K)
THERE IS NO SALES CHARGE ON SHARES PURCHASED FOR THE BENEFIT OF A RETIREMENT
PLAN UNDER SECTION 457 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED
("CODE"), OR FOR A PLAN QUALIFYING UNDER SECTION 403(B) OR 401(K) OF THE CODE
IF, AT THE TIME OF PURCHASE, (I) CALVERT GROUP HAS BEEN NOTIFIED IN WRITING THAT
THE 403(B) OR 401(K) PLAN HAS AT LEAST 200 ELIGIBLE EMPLOYEES AND IS NOT
SPONSORED BY A K-12 SCHOOL DISTRICT, OR (II) THE COST OR CURRENT VALUE OF SHARES
A 401(K) PLAN HAS IN CALVERT GROUP FUNDS (EXCEPT MONEY MARKET FUNDS) IS AT LEAST
$1 MILLION.
10A "QUALIFIED GROUP" IS ONE WHICH:
1. HAS BEEN IN EXISTENCE FOR MORE THAN SIX MONTHS, AND
2. HAS A PURPOSE OTHER THAN ACQUIRING SHARES AT A DISCOUNT, AND
3. SATISFIES UNIFORM CRITERIA WHICH ENABLE CDI AND BROKERS OFFERING SHARES
TO REALIZE ECONOMIES OF
SCALE IN DISTRIBUTING SUCH SHARES.
A QUALIFIED GROUP MUST HAVE MORE THAN 10 MEMBERS, MUST BE AVAILABLE TO ARRANGE
FOR GROUP MEETINGS BETWEEN REPRESENTATIVES OF CDI OR BROKERS DISTRIBUTING
SHARES, MUST AGREE TO INCLUDE SALES AND OTHER MATERIALS RELATED TO THE FUNDS IN
ITS PUBLICATIONS AND MAILINGS TO MEMBERS AT REDUCED OR NO COST TO CDI OR
BROKERS. A PENSION PLAN IS NOT A QUALIFIED GROUP FOR RIGHTS OF ACCUMULATION.
<PAGE>
THEREOF WILL REIMBURSE A PLAN OR PARTICIPANT FOR ANY SALES CHARGES PAID PRIOR TO
NEITHER THE FUND, NOR CALVERT DISTRIBUTORS, INC. ("CDI"), NOR ANY AFFILIATE
RECEIPT OF SUCH WRITTEN COMMUNICATION AND CONFIRMATION BY CALVERT GROUP. PLAN
ADMINISTRATORS SHOULD SEND REQUESTS FOR THE WAIVER OF SALES CHARGES BASED ON THE
ABOVE CONDITIONS TO: CALVERT GROUP RETIREMENT PLANS, 4550 MONTGOMERY AVENUE,
SUITE 1000N, BETHESDA, MARYLAND 20814.
OTHER CIRCUMSTANCES
THERE IS NO SALES CHARGE ON SHARES OF ANY FUND OF THE CALVERT GROUP OF FUNDS
SOLD TO: (I) CURRENT OR RETIRED DIRECTORS, TRUSTEES, OR OFFICERS OF THE CALVERT
GROUP OF FUNDS, EMPLOYEES OF CALVERT GROUP, LTD. AND ITS AFFILIATES, OR THEIR
FAMILY MEMBERS; (II) CSIF ADVISORY COUNCIL MEMBERS, DIRECTORS, OFFICERS, AND
EMPLOYEES OF ANY SUBADVISOR FOR THE CALVERT GROUP OF FUNDS, EMPLOYEES OF
BROKER/DEALERS DISTRIBUTING THE FUND'S SHARES AND IMMEDIATE FAMILY MEMBERS OF
THE COUNCIL, SUBADVISOR, OR BROKER/DEALER; (III) PURCHASES MADE THROUGH A
REGISTERED INVESTMENT ADVISOR; (IV) TRUST DEPARTMENTS OF BANKS OR SAVINGS
INSTITUTIONS FOR TRUST CLIENTS OF SUCH BANK OR INSTITUTION, (V) PURCHASES
THROUGH A BROKER MAINTAINING AN OMNIBUS ACCOUNT WITH THE FUND, PROVIDED THE
PURCHASES ARE MADE BY (A) INVESTMENT ADVISORS OR FINANCIAL PLANNERS PLACING
TRADES FOR THEIR OWN ACCOUNTS (OR THE ACCOUNTS OF THEIR CLIENTS) AND WHO CHARGE
A MANAGEMENT, CONSULTING, OR OTHER FEE FOR THEIR SERVICES; OR (B) CLIENTS OF
SUCH INVESTMENT ADVISORS OR FINANCIAL PLANNERS WHO PLACE TRADES FOR THEIR OWN
ACCOUNTS IF SUCH ACCOUNTS ARE LINKED TO THE MASTER ACCOUNT OF SUCH INVESTMENT
ADVISOR OR FINANCIAL PLANNER ON THE BOOKS AND RECORDS OF THE BROKER OR AGENT; OR
(C) RETIREMENT AND DEFERRED COMPENSATION PLANS AND TRUSTS, INCLUDING, BUT NOT
LIMITED TO, THOSE DEFINED IN SECTION 401(A) OR SECTION 403(B) OF THE I.R.C., AND
"RABBI TRUSTS."
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
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 60 DAYS DECIDE TO REINVEST IN THE SAME
FUND, YOU MAY DO SO AT THE NET ASSET VALUE NEXT COMPUTED AFTER THE REINVESTMENT
ORDER IS RECEIVED, WITHOUT A SALES CHARGE. YOU MAY USE THE REINSTATEMENT
PRIVILEGE ONLY ONCE. THE FUND RESERVES THE RIGHT TO MODIFY OR ELIMINATE THIS
PRIVILEGE.
<PAGE>
EXHIBIT B
SERVICE FEES AND ARRANGEMENTS WITH DEALERS
CDI, THE FUND'S UNDERWRITER, PAYS DEALERS A COMMISSION, OR REALLOWANCE
(EXPRESSED AS A PERCENTAGE OF THE OFFERING PRICE FOR CLASS A AND A PERCENTAGE OF
THE AMOUNT INVESTED FOR CLASS B) WHEN YOU PURCHASE SHARES OF THE FUND. CDI ALSO
PAYS DEALERS AN ONGOING SERVICE FEE WHILE YOU OWN SHARES OF THE FUND (EXPRESSED
AS AN ANNUAL PERCENTAGE RATE OF AVERAGE DAILY NET ASSETS HELD IN CALVERT
ACCOUNTS BY THAT DEALER). THE TABLE BELOW SHOWS THE AMOUNT OF PAYMENT WHICH
DIFFERS DEPENDING ON THE CLASS.
MAXIMUM COMMISSION/SERVICE FEES
CLASS A CLASS B*
3.00% / 0.25% 3.00% / 0.25%
*CLASS B SERVICE FEE BEGINS TO ACCRUE IN 13TH MONTH.
OCCASIONALLY, CDI MAY REALLOW TO DEALERS THE FULL CLASS A FRONT-END SALES
CHARGE. CDI MAY ALSO PAY ADDITIONAL CONCESSIONS, INCLUDING NON-CASH PROMOTIONAL
INCENTIVES, SUCH AS MERCHANDISE OR TRIPS, TO BROKERS EMPLOYING REGISTERED
REPRESENTATIVES WHO HAVE SOLD OR ARE EXPECTED TO SELL A MINIMUM DOLLAR AMOUNT OF
SHARES OF THE FUND AND/OR SHARES OF OTHER FUNDS UNDERWRITTEN BY CDI. CDI MAY
MAKE EXPENSE REIMBURSEMENTS FOR SPECIAL TRAINING OF A BROKER'S REGISTERED
REPRESENTATIVES, ADVERTISING OR EQUIPMENT, OR TO DEFRAY THE EXPENSES OF SALES
CONTESTS. CAMCO, CDI, OR THEIR AFFILIATES MAY PAY CERTAIN BROKER-DEALERS AND/OR
OTHER PERSONS, FOR THE SALE AND DISTRIBUTION OF THE SECURITIES OR FOR SERVICES
TO THE FUND. PAYMENTS MAY INCLUDE ADDITIONAL COMPENSATION BEYOND THE REGULARLY
SCHEDULED RATES, AND FINDER'S FEES. CDI PAYS DEALERS A FINDER'S FEE OF UP TO 1%
ON CERTAIN CLASS A SHARES PURCHASED AT NAV. CALL 800-368-2750 FOR MORE
INFORMATION. WHERE PAID, THE FINDER'S FEE IS 1% OF THE NAV PURCHASE AMOUNT ON
THE FIRST $2 MILLION, 0.80% ON $2 TO $3 MILLION, 0.50% ON $3 TO $50 MILLION,
0.25% ON $50 TO $100 MILLION AND 0.15% OVER $100 MILLION. ALL PAYMENTS WILL BE
IN COMPLIANCE WITH THE RULES OF THE NATIONAL ASSOCIATION OF SECURITIES DEALERS,
INC.
<PAGE>
TO OPEN AN ACCOUNT:
800-368-2748
PERFORMANCE AND PRICES:
WWW.CALVERT.COM
CALVERT INFORMATION NETWORK
24 HOURS, 7 DAYS A WEEK
800-368-2745
SERVICE FOR EXISTING ACCOUNTS:
SHAREHOLDERS 800-368-2745
BROKERS 800-368-2746
TDD FOR HEARING-IMPAIRED:
800-541-1524
BRANCH OFFICE:
4550 MONTGOMERY AVENUE
SUITE 1000N
BETHESDA, MD 20814
REGISTERED, CERTIFIED OR
OVERNIGHT MAIL:
CALVERT GROUP
C/O NFDS
330 WEST 9TH STREET
KANSAS CITY, MO 64105
CALVERT GROUP WEB-SITE
WWW.CALVERT.COM
PRINCIPAL UNDERWRITER
CALVERT DISTRIBUTORS, INC.
4550 MONTGOMERY AVENUE
SUITE 1000N
BETHESDA, MARYLAND 20814
<PAGE>
FOR INVESTORS WHO WANT MORE INFORMATION ABOUT THE FUND, THE FOLLOWING DOCUMENTS
ARE AVAILABLE FREE UPON REQUEST:
ANNUAL/SEMI-ANNUAL REPORTS: ADDITIONAL INFORMATION ABOUT THE FUND'S INVESTMENTS
IS AVAILABLE IN THE FUND'S ANNUAL AND SEMI-ANNUAL REPORTS TO SHAREHOLDERS. IN
THE FUND'S ANNUAL REPORT, YOU WILL FIND A DISCUSSION OF THE MARKET CONDITIONS
AND INVESTMENT STRATEGIES THAT SIGNIFICANTLY AFFECTED THE FUND'S PERFORMANCE
DURING ITS LAST FISCAL YEAR.
SAI: THE SAI FOR THE FUND PROVIDES MORE DETAILED INFORMATION ABOUT THE FUND AND
IS INCORPORATED INTO THIS PROSPECTUS BY REFERENCE.
YOU CAN GET FREE COPIES OF REPORTS AND THE SAI, REQUEST OTHER INFORMATION AND
DISCUSS YOUR QUESTIONS ABOUT THE FUND BY CONTACTING YOUR FINANCIAL PROFESSIONAL,
OR THE FUND AT:
CALVERT GROUP
4550 MONTGOMERY AVE.
SUITE 1000N
BETHESDA, MD 20814
TELEPHONE: 1-800-368-2745
CALVERT GROUP WEB-SITE:
WWW.CALVERT.COM
YOU CAN REVIEW THE FUND'S REPORTS AND SAI AT THE PUBLIC REFERENCE ROOM OF THE
SECURITIES AND EXCHANGE COMMISSION. YOU CAN GET TEXT-ONLY COPIES:
- - FOR A FEE, BY WRITING TO OR CALLING THE PUBLIC REFERENCE SECTION OF THE
COMMISSION, WASHINGTON, D.C. 20549-6009, TELEPHONE: 1-800-SEC-0330.
- - FREE FROM THE COMMISSION'S INTERNET WEBSITE AT WWW.SEC.GOV.
INVESTMENT COMPANY ACT FILE NO.:811-3416
PRINTED ON RECYCLED PAPER USING SOY INKS
<PAGE>
CALVERT
SOCIALLY RESPONSIBLE
PROSPECTUS
- -CALVERT SOCIAL INVESTMENT FUND
- -CALVERT CAPITAL ACCUMULATION FUND
- -CALVERT NEW VISION SMALL CAP FUND
- -CALVERT WORLD VALUES INTERNATIONAL EQUITY FUND
JANUARY 31, 2000
<PAGE>
PROSPECTUS
JANUARY 31, 2000
FUNDS IN THIS PROSPECTUS
EQUITY FUNDS
CALVERT SOCIAL INVESTMENT FUND (CSIF)
CSIF BALANCED
CSIF MANAGED INDEX
CSIF EQUITY
CALVERT CAPITAL ACCUMULATION
CALVERT WORLD VALUES
INTERNATIONAL EQUITY
CALVERT NEW VISION
SMALL CAP
BOND AND MONEY MARKET FUNDS
CALVERT SOCIAL INVESTMENT FUND (CSIF)
CSIF BOND
CSIF MONEY MARKET
ABOUT THE FUNDS
2 INVESTMENT OBJECTIVE, STRATEGY,
PAST PERFORMANCE
24 FEES AND EXPENSES
28 PRINCIPAL INVESTMENT PRACTICES
AND RISKS
ABOUT SOCIAL INVESTING
32 INVESTMENT SELECTION PROCESS
33 SOCIALLY RESPONSIBLE INVESTMENT
CRITERIA
37 HIGH SOCIAL IMPACT INVESTMENTS
37 SPECIAL EQUITIES
ABOUT YOUR INVESTMENT
38 SUBADVISORS AND PORTFOLIO
MANAGERS
40 ADVISORY FEES
41 HOW TO BUY SHARES
41 GETTING STARTED
41 CHOOSING A SHARE CLASS
43 CALCULATION OF CDSC/WAIVER
44 DISTRIBUTION AND SERVICE FEES
45 NEXT STEP - ACCOUNT APPLICATION
46 IMPORTANT - HOW SHARES ARE
PRICED
46 WHEN YOUR ACCOUNT WILL BE
CREDITED
47 OTHER CALVERT GROUP FEATURES
(EXCHANGES, MINIMUM ACCOUNT
BALANCE, ETC.)
50 DIVIDENDS, CAPITAL GAINS
AND TAXES
51 HOW TO SELL SHARES
53 FINANCIAL HIGHLIGHTS
66 EXHIBIT A- REDUCED SALES CHARGES
(CLASS A)
68 EXHIBIT B- SERVICE FEES AND
OTHER ARRANGEMENTS WITH DEALERS
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION (SEC) OR ANY STATE SECURITIES COMMISSION, NOR HAS THE SEC OR
ANY STATE SECURITIES COMMISSION PASSED ON THE ACCURACY OR ADEQUACY OF THIS
PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
<PAGE>
CSIF BALANCED
(NOTE: FORMERLY KNOWN AS CSIF MANAGED GROWTH)
ADVISOR CALVERT ASSET MANAGEMENT COMPANY, INC.
SUBADVISORS BROWN CAPITAL MANAGEMENT, INC.
NCM CAPITAL MANAGEMENT, INC.
OBJECTIVE
CSIF BALANCED SEEKS TO ACHIEVE A COMPETITIVE TOTAL RETURN THROUGH AN ACTIVELY
MANAGED PORTFOLIO OF STOCKS, BONDS AND MONEY MARKET INSTRUMENTS WHICH OFFER
INCOME AND CAPITAL GROWTH OPPORTUNITY AND WHICH SATISFY THE INVESTMENT AND
SOCIAL CRITERIA.
PRINCIPAL INVESTMENT STRATEGIES
THE FUND TYPICALLY INVESTS ABOUT 60% OF ITS ASSETS IN STOCKS AND 40% IN BONDS OR
OTHER FIXED-INCOME INVESTMENTS. STOCK INVESTMENTS ARE PRIMARILY COMMON STOCK IN
LARGE-CAP COMPANIES, WHILE THE FIXED-INCOME INVESTMENTS ARE PRIMARILY A WIDE
VARIETY OF INVESTMENT GRADE BONDS.
CSIF BALANCED INVESTS IN A COMBINATION OF STOCKS, BONDS AND MONEY MARKET
INSTRUMENTS IN AN ATTEMPT TO PROVIDE A COMPLETE INVESTMENT PORTFOLIO IN A SINGLE
PRODUCT. THE ADVISOR REBALANCES THE FUND QUARTERLY TO ADJUST FOR CHANGES IN
MARKET VALUE. THE FUND IS A LARGE-CAP, GROWTH-ORIENTED U.S. DOMESTIC PORTFOLIO,
ALTHOUGH IT MAY HAVE OTHER INVESTMENTS, INCLUDING SOME FOREIGN SECURITIES AND
SOME MID-CAP STOCKS. FOR THE EQUITY PORTION, THE FUND SEEKS COMPANIES WITH
BETTER THAN AVERAGE EXPECTED GROWTH RATES AT LOWER THAN AVERAGE VALUATIONS. THE
FIXED-INCOME PORTION REFLECTS AN ACTIVE TRADING STRATEGY, SEEKING TOTAL RETURN,
AND FOCUSES ON A DURATION TARGET APPROXIMATING THE LEHMAN AGGREGATE BOND INDEX.
EQUITY INVESTMENTS ARE SELECTED BY THE TWO SUBADVISORS, WHILE THE ADVISOR
MANAGES THE FIXED-INCOME ASSETS AND DETERMINES THE OVERALL MIX FOR THE FUND
DEPENDING UPON ITS VIEW OF MARKET CONDITIONS AND ECONOMIC OUTLOOK.
THE FUND INVESTS WITH THE PHILOSOPHY THAT LONG-TERM REWARDS TO INVESTORS WILL
COME FROM THOSE ORGANIZATIONS WHOSE PRODUCTS, SERVICES, AND METHODS ENHANCE THE
HUMAN CONDITION AND THE TRADITIONAL AMERICAN VALUES OF INDIVIDUAL INITIATIVE,
EQUALITY OF OPPORTUNITY AND COOPERATIVE EFFORT. INVESTMENTS ARE SELECTED ON THE
BASIS OF THEIR ABILITY TO CONTRIBUTE TO THE DUAL OBJECTIVES OF FINANCIAL
SOUNDNESS AND SOCIAL CRITERIA. SEE "INVESTMENT SELECTION PROCESS."
<PAGE>
PRINCIPAL RISKS
YOU COULD LOSE MONEY ON YOUR INVESTMENT IN THE FUND, OR THE FUND COULD
UNDERPERFORM FOR ANY OF THE FOLLOWING REASONS:
- - THE STOCK OR BOND MARKET GOES DOWN
- - THE INDIVIDUAL STOCKS AND BONDS IN THE FUND DO NOT PERFORM AS WELL AS
EXPECTED
- - FOR THE FIXED-INCOME PORTION OF THE FUND, THE ADVISOR'S FORECAST AS TO
INTEREST RATES IS NOT CORRECT
- - FOR THE FOREIGN SECURITIES HELD IN THE FUND, IF FOREIGN CURRENCY VALUES GO
DOWN VERSUS THE U.S. DOLLAR
- - THE ADVISOR'S ALLOCATION AMONG DIFFERENT SECTORS OF THE STOCK AND BOND
MARKETS DOES NOT PERFORM AS WELL AS EXPECTED
THE ACTIVE TRADING STRATEGY FOR THE FIXED-INCOME PORTION OF THE FUND MAY CAUSE
THE FUND TO HAVE, RELATIVE TO OTHER BALANCED FUNDS, A HIGH AMOUNT OF SHORT-TERM
CAPITAL GAINS, WHICH ARE TAXABLE TO YOU AT THE ORDINARY INCOME TAX RATE.
AN INVESTMENT IN THE FUND IS NOT A BANK DEPOSIT AND IS NOT INSURED OR GUARANTEED
BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY.
CSIF BALANCED PERFORMANCE
THE BAR CHART AND TABLE BELOW SHOW THE FUND'S ANNUAL RETURNS AND ITS LONG-TERM
PERFORMANCE. THE CHART AND TABLE PROVIDE SOME INDICATION OF THE RISKS OF
INVESTING IN THE FUND. THE CHART SHOWS HOW THE PERFORMANCE OF THE CLASS A SHARES
HAS VARIED FROM YEAR TO YEAR. THE TABLE COMPARES THE FUND'S PERFORMANCE OVER
TIME TO THAT OF THE STANDARD & POOR'S 500 INDEX AND THE LEHMAN AGGREGATE BOND
INDEX, A WIDELY RECOGNIZED, UNMANAGED INDEX OF COMMON STOCK AND BONDS PRICES,
RESPECTIVELY. IT ALSO SHOWS THE FUND'S RETURNS COMPARED TO THE LIPPER BALANCED
FUND INDEX, A COMPOSITE INDEX OF THE ANNUAL RETURN OF MUTUAL FUNDS THAT HAVE AN
INVESTMENT GOAL SIMILAR TO THAT OF THE FUND. THE FUND'S PAST PERFORMANCE DOES
NOT NECESSARILY INDICATE HOW THE FUND WILL PERFORM IN THE FUTURE.
THE RETURN FOR THE FUND'S OTHER CLASSES OF SHARES OFFERED BY THIS PROSPECTUS
WILL DIFFER FROM THE CLASS A RETURNS SHOWN IN THE BAR CHART, DEPENDING UPON THE
EXPENSES OF THAT CLASS. THE BAR CHART DOES NOT REFLECT ANY SALES CHARGE THAT YOU
MAY BE REQUIRED TO PAY UPON PURCHASE OR REDEMPTION OF THE FUND'S SHARES. ANY
SALES CHARGE WILL REDUCE YOUR RETURN. THE AVERAGE TOTAL RETURN TABLE SHOWS
RETURNS WITH THE MAXIMUM SALES CHARGE DEDUCTED. NO SALES CHARGE HAS BEEN APPLIED
TO THE INDICES USED FOR COMPARISON IN THE TABLE.
<PAGE>
CSIF BALANCED
YEAR-BY-YEAR TOTAL RETURN
(CLASS A RETURN AT NAV)
[INSERT BAR CHART HERE]
BEST QUARTER (OF PERIODS SHOWN) Q4 '98 12.42%
WORST QUARTER (OF PERIODS SHOWN) Q3 '98 (6.47%)
AVERAGE ANNUAL TOTAL RETURNS (AS OF 12-31-99)
(WITH MAXIMUM SALES CHARGE DEDUCTED)
1 YEAR 5 YEAR 10 YEAR
CSIF BALANCED: CLASS A 1.73% 14.29% 9.75%
CSIF BALANCED: CLASS B 0.54% N/A N/A
CSIF BALANCED: CLASS C 4.76% 14.12% N/A
S&P 500 INDEX MONTHLY REINVESTED
21.03% 28.54% 18.19%
LEHMAN AGGREGATE BOND INDEX TR
(0.82%) 7.73% 7.70%
LIPPER BALANCED FUND INDEX
8.98% 16.33% 12.26%
<PAGE>
CSIF MANAGED INDEX
ADVISOR CALVERT ASSET MANAGEMENT COMPANY, INC.
SUBADVISOR STATE STREET GLOBAL ADVISORS
OBJECTIVE
CSIF MANAGED INDEX SEEKS A TOTAL RETURN AFTER EXPENSES WHICH EXCEEDS OVER TIME
THE TOTAL RETURN OF THE RUSSELL 1000 INDEX. IT SEEKS TO OBTAIN THIS OBJECTIVE
WHILE MAINTAINING RISK CHARACTERISTICS SIMILAR TO THOSE OF THE RUSSELL 1000
INDEX AND THROUGH INVESTMENTS IN STOCKS THAT MEET THE FUND'S INVESTMENT AND
SOCIAL CRITERIA. THIS OBJECTIVE MAY BE CHANGED BY THE FUND'S BOARD OF
TRUSTEES/DIRECTORS WITHOUT SHAREHOLDER APPROVAL.
PRINCIPAL INVESTMENT STRATEGIES
THE FUND INVESTS IN STOCKS THAT MEET THE SOCIAL CRITERIA AND CREATES A PORTFOLIO
WHOSE CHARACTERISTICS CLOSELY RESEMBLE THE CHARACTERISTICS OF THE RUSSELL 1000
INDEX, WHILE EMPHASIZING THE STOCKS WHICH IT BELIEVES OFFER THE GREATEST
POTENTIAL OF RETURN.
CSIF MANAGED INDEX FOLLOWS AN ENHANCED INDEX MANAGEMENT STRATEGY. INSTEAD OF
PASSIVELY HOLDING A REPRESENTATIVE BASKET OF SECURITIES DESIGNED TO MATCH THE
RUSSELL 1000 INDEX, THE SUBADVISOR ACTIVELY USES A PROPRIETARY ANALYTICAL MODEL
TO ATTEMPT TO ENHANCE THE FUND'S PERFORMANCE, RELATIVE TO THE INDEX. THE FUND
MAY PURCHASE STOCKS NOT IN THE RUSSELL 1000 INDEX, BUT AT LEAST 65% OF THE
FUND'S TOTAL ASSETS WILL BE INVESTED IN STOCKS THAT ARE IN THE INDEX. ANY
INVESTMENTS NOT IN THE INDEX WILL MEET THE FUND'S SOCIAL SCREENING CRITERIA AND
BE SELECTED TO CLOSELY MIRROR THE INDEX'S RISK/RETURN CHARACTERISTICS. THE
SUBADVISOR REBALANCES THE FUND QUARTERLY TO MAINTAIN ITS RELATIVE EXPOSURE TO
THE INDEX.
THE FIRST STEP OF THE INVESTMENT STRATEGY IS TO IDENTIFY THOSE STOCKS IN THE
RUSSELL 1000 INDEX WHICH MEET THE FUND'S SOCIAL SCREENING CRITERIA. FROM THIS
LIST OF STOCKS, THE SUBADVISOR CHOOSES STOCKS THAT CLOSELY MIRROR THE INDEX IN
TERMS OF VARIOUS FACTORS SUCH AS INDUSTRY WEIGHTINGS, CAPITALIZATION, AND YIELD.
EVEN THOUGH CERTAIN INDUSTRIES MAY BE ELIMINATED FROM THE FUND BY THE SCREENS,
THE FACTOR MODEL PERMITS MATHEMATICAL SUBSTITUTES WHICH THE SUBADVISOR EXPECTS
TO MIMIC THE RETURN CHARACTERISTICS OF THE MISSING INDUSTRIES AND STOCKS.
THE FINAL STEP IN THE PROCESS IS TO APPLY THE SUBADVISOR'S PROPRIETARY VALUATION
METHOD WHICH ATTEMPTS TO IDENTIFY THE STOCKS WHICH HAVE THE GREATEST POTENTIAL
FOR SUPERIOR PERFORMANCE. EACH SECURITY IDENTIFIED FOR POTENTIAL INVESTMENT IS
RANKED ACCORDING TO TWO SEPARATE MEASURES: VALUE AND MOMENTUM OF MARKET
SENTIMENT. THESE TWO MEASURES COMBINE TO CREATE A SINGLE COMPOSITE SCORE OF
EACH STOCK'S ATTRACTIVENESS. THE FUND IS CONSTRUCTED FROM SECURITIES THAT MEET
ITS SOCIAL CRITERIA, WEIGHTED THROUGH A MATHEMATICAL PROCESS THAT SEEKS TO
REDUCE RISK VIS- -VIS THE RUSSELL 1000 INDEX.
<PAGE>
THE RUSSELL 1000 INDEX MEASURES THE PERFORMANCE OF THE 1,000 LARGEST U.S.
COMPANIES BASED ON TOTAL MARKET CAPITALIZATION. THE INDEX IS ADJUSTED, OR
RECONSTITUTED, ANNUALLY. AS OF THE LATEST RECONSTITUTION, THE AVERAGE MARKET
CAPITALIZATION OF THE RUSSELL 1000 WAS APPROXIMATELY $91.485 BILLION.
PRINCIPAL RISKS
YOU COULD LOSE MONEY ON YOUR INVESTMENT IN THE FUND, OR THE FUND COULD
UNDERPERFORM THE STOCK MARKET FOR ANY OF THE FOLLOWING REASONS:
- - THE STOCK MARKET OR THE RUSSELL 1000 INDEX GOES DOWN
- - THE INDIVIDUAL STOCKS IN THE FUND OR THE INDEX MODELING PORTFOLIO DO NOT
PERFORM AS WELL AS EXPECTED
- - AN INDEX FUND HAS OPERATING EXPENSES; A MARKET INDEX DOES NOT. THE FUND
- - WHILE EXPECTED TO TRACK ITS TARGET INDEX AS CLOSELY AS POSSIBLE
WHILE SATISFYING ITS OWN INVESTMENT AND SOCIAL CRITERIA - WILL NOT BE
ABLE TO MATCH THE PERFORMANCE OF THE INDEX EXACTLY
AN INVESTMENT IN THE FUND IS NOT A BANK DEPOSIT AND IS NOT INSURED OR GUARANTEED
BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY.
THE FUND IS NOT SPONSORED, SOLD, PROMOTED OR ENDORSED BY THE FRANK RUSSELL
COMPANY.
TRACKING THE INDEX
THE SUBADVISOR EXPECTS THE ANNUAL TRACKING ERROR, RELATIVE TO THE RETURN OF THE
INDEX BEFORE DEDUCTING EXPENSES, TO BE WITHIN CERTAIN LIMITS ESTABLISHED BY THE
ADVISOR AND SUBADVISOR. THE FUND'S ABILITY TO TRACK THE INDEX WILL BE MONITORED
BY ANALYZING RETURNS TO ENSURE THAT THE RETURNS ARE REASONABLY CONSISTENT WITH
INDEX RETURNS. ANY DEVIATIONS OF REALIZED RETURNS FROM THE INDEX WHICH ARE IN
EXCESS OF THOSE EXPECTED WILL BE ANALYZED FOR SOURCES OF VARIANCE.
THE FUND INVESTS WITH THE PHILOSOPHY THAT LONG-TERM REWARDS TO INVESTORS WILL
COME FROM THOSE ORGANIZATIONS WHOSE PRODUCTS, SERVICES, AND METHODS ENHANCE THE
HUMAN CONDITION AND THE TRADITIONAL AMERICAN VALUES OF INDIVIDUAL INITIATIVE,
EQUALITY OF OPPORTUNITY AND COOPERATIVE EFFORT. INVESTMENTS ARE SELECTED ON THE
BASIS OF THEIR ABILITY TO CONTRIBUTE TO THE DUAL OBJECTIVES OF FINANCIAL
SOUNDNESS AND SOCIAL CRITERIA. SEE "INVESTMENT SELECTION PROCESS."
<PAGE>
CSIF MANAGED INDEX PERFORMANCE
THE BAR CHART AND TABLE BELOW SHOW THE FUND'S ANNUAL RETURNS AND ITS LONG-TERM
PERFORMANCE. THE CHART AND TABLE PROVIDE SOME INDICATION OF THE RISKS OF
INVESTING IN THE FUND. THE CHART SHOWS THE PERFORMANCE OF THE CLASS A SHARES FOR
EACH CALENDAR YEAR. THE TABLE COMPARES THE FUND'S PERFORMANCE OVER TIME TO THAT
OF THE RUSSELL 1000 INDEX, A WIDELY RECOGNIZED, UNMANAGED INDEX OF COMMON STOCK
PRICES. IT ALSO SHOWS THE FUND'S RETURNS COMPARED TO THE LIPPER LARGE-CAP CORE
INDEX, A COMPOSITE INDEX OF THE ANNUAL RETURN OF MUTUAL FUNDS THAT HAVE AN
INVESTMENT GOAL SIMILAR TO THAT OF THE FUND. THE FUND'S PAST PERFORMANCE DOES
NOT NECESSARILY INDICATE HOW THE FUND WILL PERFORM IN THE FUTURE.
THE RETURN FOR THE FUND'S OTHER CLASSES OF SHARES OFFERED BY THIS PROSPECTUS
WILL DIFFER FROM THE CLASS A RETURNS SHOWN IN THE BAR CHART, DEPENDING UPON THE
EXPENSES OF THAT CLASS. THE BAR CHART DOES NOT REFLECT ANY SALES CHARGE THAT YOU
MAY BE REQUIRED TO PAY UPON PURCHASE OR REDEMPTION OF THE FUND'S SHARES. ANY
SALES CHARGE WILL REDUCE YOUR RETURN. THE AVERAGE TOTAL RETURN TABLE SHOWS
RETURNS WITH THE MAXIMUM SALES CHARGE DEDUCTED. NO SALES CHARGE HAS BEEN APPLIED
TO THE INDICES USED FOR COMPARISON IN THE TABLE.
<PAGE>
CSIF MANAGED INDEX
YEAR-BY-YEAR TOTAL RETURN
(CLASS A RETURN AT NAV)
[INSERT BAR CHART HERE]
BEST QUARTER (OF PERIODS SHOWN) Q4 '99 14.59%
WORST QUARTER (OF PERIODS SHOWN) Q3 '99 (6.45%)
AVERAGE ANNUAL TOTAL RETURNS (AS OF 12-31-99)
(WITH MAXIMUM SALES CHARGE DEDUCTED)
1 YEAR 5 YEAR 10 YEAR
CSIF MANAGED INDEX: CLASS A1 11.60% N/A N/A
CSIF MANAGED INDEX: CLASS B 10.69% N/A N/A
CSIF MANAGED INDEX: CLASS C 14.71% N/A N/A
RUSSELL 1000 INDEX 20.91% N/A N/A
LIPPER LARGE-CAP CORE INDEX 19.35% N/A N/A
1SINCE INCEPTION "A" (4/30/98) 13.69%; RUSSELL 1000 19.20%; AND LIPPER LARGE-CAP
CORE INDEX 18.16%. THE MONTH END DATE OF 4/30/98 IS USED FOR COMPARISON PURPOSES
ONLY, ACTUAL FUND INCEPTION IS 4/15/98.
<PAGE>
CSIF EQUITY
ADVISOR CALVERT ASSET MANAGEMENT COMPANY, INC.
SUBADVISOR ATLANTA CAPITAL MANAGEMENT COMPANY, L.L.C.
OBJECTIVE
CSIF EQUITY SEEKS GROWTH OF CAPITAL THROUGH INVESTMENT IN STOCKS OF ISSUERS IN
INDUSTRIES BELIEVED TO OFFER OPPORTUNITIES FOR POTENTIAL CAPITAL APPRECIATION
AND WHICH MEET THE FUND'S INVESTMENT AND SOCIAL CRITERIA.
PRINCIPAL INVESTMENT STRATEGIES
THE FUND INVESTS PRIMARILY IN THE COMMON STOCKS OF LARGE-CAP COMPANIES HAVING,
ON AVERAGE, MARKET CAPITALIZATION OF AT LEAST $1 BILLION. INVESTMENT RETURNS
WILL BE MOSTLY FROM CHANGES IN THE PRICE OF THE FUND'S HOLDINGS (CAPITAL
APPRECIATION).
THE SUBADVISOR LOOKS FOR GROWING COMPANIES WITH A HISTORY OF STEADY EARNINGS
GROWTH. COMPANIES ARE SELECTED BASED ON THE SUBADVISOR'S OPINION THAT THE
COMPANY HAS THE ABILITY TO SUSTAIN GROWTH THROUGH GROWING PROFITABILITY AND THAT
THE STOCK IS FAVORABLY PRICED WITH RESPECT TO THOSE GROWTH EXPECTATIONS.
THE FUND INVESTS WITH THE PHILOSOPHY THAT LONG-TERM REWARDS TO INVESTORS WILL
COME FROM THOSE ORGANIZATIONS WHOSE PRODUCTS, SERVICES, AND METHODS ENHANCE THE
HUMAN CONDITION AND THE TRADITIONAL AMERICAN VALUES OF INDIVIDUAL INITIATIVE,
EQUALITY OF OPPORTUNITY AND COOPERATIVE EFFORT. INVESTMENTS ARE SELECTED ON THE
BASIS OF THEIR ABILITY TO CONTRIBUTE TO THE DUAL OBJECTIVES OF FINANCIAL
SOUNDNESS AND SOCIAL CRITERIA. SEE "INVESTMENT SELECTION PROCESS."
PRINCIPAL RISKS
YOU COULD LOSE MONEY ON YOUR INVESTMENT IN THE FUND, OR THE FUND COULD
UNDERPERFORM FOR ANY OF THE FOLLOWING REASONS:
- - THE STOCK MARKET GOES DOWN
- - THE INDIVIDUAL STOCKS IN THE FUND DO NOT PERFORM AS WELL AS EXPECTED
AN INVESTMENT IN THE FUND IS NOT A BANK DEPOSIT AND IS NOT INSURED OR GUARANTEED
BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY.
CSIF EQUITY PERFORMANCE
THE BAR CHART AND TABLE BELOW SHOW THE FUND'S ANNUAL RETURNS AND ITS LONG-TERM
PERFORMANCE. THE CHART AND TABLE PROVIDE SOME INDICATION OF THE RISKS OF
INVESTING IN THE FUND. THE CHART SHOWS HOW THE PERFORMANCE OF THE CLASS A SHARES
HAS VARIED FROM YEAR TO YEAR. THE TABLE COMPARES THE FUND'S PERFORMANCE OVER
TIME TO THAT OF THE STANDARD & POOR'S 500 INDEX. THIS IS A WIDELY RECOGNIZED,
UNMANAGED
<PAGE>
INDEX OF COMMON STOCK PRICES. IT ALSO SHOWS THE FUND'S RETURNS COMPARED TO THE
LIPPER MULTI-CAP CORE INDEX, A COMPOSITE INDEX OF THE ANNUAL RETURN OF MUTUAL
FUNDS THAT HAVE AN INVESTMENT GOAL SIMILAR TO THAT OF THE FUND. THE FUND'S PAST
PERFORMANCE DOES NOT NECESSARILY INDICATE HOW THE FUND WILL PERFORM IN THE
FUTURE.
THE RETURN FOR EACH OF THE FUND'S OTHER CLASSES OF SHARES OFFERED BY THIS
PROSPECTUS WILL DIFFER FROM THE CLASS A RETURNS SHOWN IN THE BAR CHART,
DEPENDING UPON THE EXPENSES OF THAT CLASS. THE BAR CHART DOES NOT REFLECT ANY
SALES CHARGE THAT YOU MAY BE REQUIRED TO PAY UPON PURCHASE OR REDEMPTION OF THE
FUND'S SHARES. ANY SALES CHARGE WILL REDUCE YOUR RETURN. THE AVERAGE TOTAL
RETURN TABLE SHOWS RETURNS WITH THE MAXIMUM SALES CHARGE DEDUCTED. NO SALES
CHARGE HAS BEEN APPLIED TO THE INDICES USED FOR COMPARISON IN THE TABLE.
CSIF EQUITY
YEAR-BY-YEAR TOTAL RETURN
(CLASS A RETURN AT NAV)
[INSERT BAR CHART HERE]
BEST QU ARTER (OF PERIODS SHOWN) Q4 '98 26.98%
WORST QUARTER (OF PERIODS SHOWN) Q3 '98 (17.56%)
AVERAGE ANNUAL TOTAL RETURNS (AS OF 12-31-99)
(WITH MAXIMUM SALES CHARGE DEDUCTED)
1 YEAR 5 YEAR 10 YEAR
CSIF EQUITY: CLASS A 17.31% 17.84% 9.88%
CSIF EQUITY: CLASS B 16.85% N/A N/A
CSIF EQUITY: CLASS C 21.13% 17.63% N/A
S&P 500 INDEX MONTHLY REINVESTED
21.03% 28.54% 18.19%
LIPPER MULTI-CAP CORE INDEX
20.79% 23.59% 16.05%
<PAGE>
CALVERT CAPITAL ACCUMULATION
ADVISOR CALVERT ASSET MANAGEMENT COMPANY, INC.
SUBADVISOR BROWN CAPITAL MANAGEMENT, INC.
OBJECTIVE
CAPITAL ACCUMULATION SEEKS TO PROVIDE LONG-TERM CAPITAL APPRECIATION BY
INVESTING PRIMARILY IN MID-CAP STOCKS THAT MEET THE FUND'S INVESTMENT AND SOCIAL
CRITERIA. THIS OBJECTIVE MAY BE CHANGED BY THE FUND'S BOARD OF
TRUSTEES/DIRECTORS WITHOUT SHAREHOLDER APPROVAL.
PRINCIPAL INVESTMENT STRATEGIES
INVESTMENTS ARE PRIMARILY IN THE COMMON STOCKS OF MID-SIZE COMPANIES. RETURNS IN
THE FUND WILL BE MOSTLY FROM THE CHANGES IN THE PRICE OF THE FUND'S HOLDINGS
(CAPITAL APPRECIATION.)
THE FUND CURRENTLY DEFINES MID-CAP COMPANIES AS THOSE WITHIN THE RANGE OF MARKET
CAPITALIZATIONS OF THE STANDARD & POOR'S MID-CAP 400 INDEX. MOST COMPANIES IN
THE INDEX HAVE A CAPITALIZATION OF $500 MILLION TO $10 BILLION. STOCKS CHOSEN
FOR THE FUND COMBINE GROWTH AND VALUE CHARACTERISTICS OR OFFER THE OPPORTUNITY
TO BUY GROWTH AT A REASONABLE PRICE.
THE SUBADVISOR FAVORS COMPANIES WHICH HAVE AN ABOVE MARKET AVERAGE PROSPECTIVE
GROWTH RATE, BUT SELL AT BELOW MARKET AVERAGE VALUATIONS. THE SUBADVISOR
EVALUATES EACH STOCK IN TERMS OF ITS GROWTH POTENTIAL, THE RETURN FOR RISK FREE
INVESTMENTS AND THE RISK AND REWARD POTENTIAL FOR THE COMPANY TO DETERMINE A
REASONABLE PRICE FOR THE STOCK.
THE FUND INVESTS WITH THE PHILOSOPHY THAT LONG-TERM REWARDS TO INVESTORS WILL
COME FROM THOSE ORGANIZATIONS WHOSE PRODUCTS, SERVICES, AND METHODS ENHANCE THE
HUMAN CONDITION AND THE TRADITIONAL AMERICAN VALUES OF INDIVIDUAL INITIATIVE,
EQUALITY OF OPPORTUNITY AND COOPERATIVE EFFORT. INVESTMENTS ARE SELECTED ON THE
BASIS OF THEIR ABILITY TO CONTRIBUTE TO THE DUAL OBJECTIVES OF FINANCIAL
SOUNDNESS AND SOCIAL CRITERIA. SEE "INVESTMENT SELECTION PROCESS."
<PAGE>
PRINCIPAL RISKS
YOU COULD LOSE MONEY ON YOUR INVESTMENT IN THE FUND, OR THE FUND COULD
UNDERPERFORM FOR ANY OF THE FOLLOWING REASONS:
- - THE STOCK MARKET GOES DOWN
- - THE INDIVIDUAL STOCKS IN THE FUND DO NOT PERFORM AS WELL AS EXPECTED
- - THE POSSIBILITY OF GREATER RISK BY INVESTING IN MEDIUM-SIZED COMPANIES
RATHER THAN LARGER, MORE ESTABLISHED COMPANIES.
- - THE FUND IS NON-DIVERSIFIED. COMPARED TO OTHER FUNDS, THE FUND MAY INVEST
MORE OF ITS ASSETS IN A SMALLER NUMBER OF COMPANIES. GAINS OR LOSSES ON A SINGLE
STOCK MAY HAVE GREATER IMPACT ON THE FUND.
AN INVESTMENT IN THE FUND IS NOT A BANK DEPOSIT AND IS NOT INSURED OR GUARANTEED
BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY.
CAPITAL ACCUMULATION PERFORMANCE
THE BAR CHART AND TABLE BELOW SHOW THE FUND'S ANNUAL RETURNS AND ITS LONG-TERM
PERFORMANCE. THE CHART AND TABLE PROVIDE SOME INDICATION OF THE RISKS OF
INVESTING IN THE FUND. THE CHART SHOWS HOW THE PERFORMANCE OF THE FUND'S CLASS A
SHARES HAS VARIED FROM YEAR TO YEAR. THE TABLE COMPARES THE FUND'S PERFORMANCE
OVER TIME TO THAT OF THE STANDARD & POOR'S MID-CAP 400 INDEX. THIS IS A WIDELY
RECOGNIZED, UNMANAGED INDEX OF COMMON STOCK PRICES. IT ALSO SHOWS THE FUND'S
RETURNS COMPARED TO THE LIPPER MID-CAP GROWTH INDEX, A COMPOSITE INDEX OF THE
ANNUAL RETURN OF MUTUAL FUNDS THAT HAVE AN INVESTMENT GOAL SIMILAR TO THAT OF
THE FUND. THE FUND'S PAST PERFORMANCE DOES NOT NECESSARILY INDICATE HOW THE FUND
WILL PERFORM IN THE FUTURE.
THE RETURN FOR THE FUND'S OTHER CLASSES OF SHARES OFFERED BY THIS PROSPECTUS
WILL DIFFER FROM THE CLASS A RETURNS SHOWN IN THE BAR CHART, DEPENDING UPON THE
EXPENSES OF THAT CLASS. THE BAR CHART DOES NOT REFLECT ANY SALES CHARGE THAT YOU
MAY BE REQUIRED TO PAY UPON PURCHASE OR REDEMPTION OF THE FUND'S SHARES. ANY
SALES CHARGE WILL REDUCE YOUR RETURN. THE AVERAGE TOTAL RETURN TABLE SHOWS
RETURNS WITH THE MAXIMUM SALES CHARGE DEDUCTED. NO SALES CHARGE HAS BEEN APPLIED
TO THE INDICES USED FOR COMPARISON IN THE TABLE.
<PAGE>
CAPITAL ACCUMULATION
YEAR-BY-YEAR TOTAL RETURN
(CLASS A RETURN AT NAV)
[INSERT BAR CHART HERE]
BEST QUARTER (OF PERIODS SHOWN) Q4 '98 25.03%
WORST QUARTER (OF PERIODS SHOWN) Q3 '99 (14.82%)
AVERAGE ANNUAL TOTAL RETURNS (AS OF 12-31-99)
(WITH MAXIMUM SALES CHARGE DEDUCTED)
1 YEAR 5 YEAR 10 YEAR
CAPITAL ACCUMULATION: CLASS A1 1.12% 19.01% N/A
CAPITAL ACCUMULATION: CLASS B 0.28% N/A N/A
CAPITAL ACCUMULATION: CLASS C 4.36% 18.98% N/A
S&P MID-CAP 400 INDEX 14.72% 23.05% N/A
LIPPER MID-CAP GROWTH INDEX 73.72% 28.07% N/A
1 SINCE INCEPTION "A" (10/31/94) 18.83%; S&P MID CAP 400 INDEX 21.34%; AND
LIPPER MID-CAP GROWTH INDEX 26.73%.
<PAGE>
CALVERT WORLD VALUES
INTERNATIONAL EQUITY FUND
ADVISOR CALVERT ASSET MANAGEMENT COMPANY, INC.
SUBADVISOR MURRAY JOHNSTONE INTERNATIONAL, LTD.
OBJECTIVE
CWVF INTERNATIONAL EQUITY SEEKS TO PROVIDE A HIGH TOTAL RETURN CONSISTENT WITH
REASONABLE RISK BY INVESTING PRIMARILY IN A GLOBALLY DIVERSIFIED PORTFOLIO OF
STOCKS THAT MEET THE FUND'S INVESTMENT AND SOCIAL CRITERIA.
PRINCIPAL INVESTMENT STRATEGIES
THE FUND INVESTS PRIMARILY IN THE COMMON STOCKS OF MID- TO LARGE-CAP COMPANIES
USING A VALUE APPROACH. THE FUND IDENTIFIES THOSE COUNTRIES WITH MARKETS AND
ECONOMIES THAT IT BELIEVES CURRENTLY PROVIDE THE MOST FAVORABLE CLIMATE FOR
INVESTING. THE SUBADVISOR SELECTS COUNTRIES BASED ON A "20 QUESTIONS" MODEL
WHICH USES MACRO- AND MICRO-ECONOMIC INPUTS TO RANK THE ATTRACTIVENESS OF
MARKETS IN VARIOUS COUNTRIES. WITHIN EACH COUNTRY, THE SUBADVISOR USES
VALUATION TECHNIQUES THAT HAVE BEEN SHOWN TO BEST DETERMINE VALUE WITHIN THAT
MARKET. IN SOME COUNTRIES, THE VALUATION PROCESS MAY FAVOR THE COMPARISON OF
PRICE-TO-CASH-FLOW WHILE IN OTHER COUNTRIES, PRICE-TO-SALES OR PRICE-TO-BOOK MAY
BE MORE USEFUL IN DETERMINING WHICH STOCKS ARE UNDERVALUED.
THE FUND INVESTS PRIMARILY IN MORE DEVELOPED ECONOMIES AND MARKETS. NO MORE THAN
5% OF FUND ASSETS ARE INVESTED IN THE U.S. (EXCLUDING HIGH SOCIAL IMPACT AND
SPECIAL EQUITIES INVESTMENTS).
THE FUND INVESTS WITH THE PHILOSOPHY THAT LONG-TERM REWARDS TO INVESTORS WILL
COME FROM THOSE ORGANIZATIONS WHOSE PRODUCTS, SERVICES, AND METHODS ENHANCE THE
HUMAN CONDITION AND THE TRADITIONAL AMERICAN VALUES OF INDIVIDUAL INITIATIVE,
EQUALITY OF OPPORTUNITY AND COOPERATIVE EFFORT. INVESTMENTS ARE SELECTED ON THE
BASIS OF THEIR ABILITY TO CONTRIBUTE TO THE DUAL OBJECTIVES OF FINANCIAL
SOUNDNESS AND SOCIAL CRITERIA. SEE "INVESTMENT SELECTION PROCESS."
PRINCIPAL RISKS
YOU COULD LOSE MONEY ON YOUR INVESTMENT IN THE FUND, OR THE FUND COULD
UNDERPERFORM FOR ANY OF THE FOLLOWING REASONS:
- - THE STOCK MARKETS GO DOWN (INCLUDING MARKETS OUTSIDE THE U.S.)
- - THE INDIVIDUAL STOCKS IN THE FUND DO NOT PERFORM AS WELL AS EXPECTED
- - FOREIGN CURRENCY VALUES GO DOWN VERSUS THE U.S. DOLLAR
AN INVESTMENT IN THE FUND IS NOT A BANK DEPOSIT AND IS NOT INSURED OR GUARANTEED
BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY.
<PAGE>
CWVF INTERNATIONAL EQUITY PERFORMANCE
THE BAR CHART AND TABLE BELOW SHOW THE FUND'S ANNUAL RETURNS AND ITS LONG-TERM
PERFORMANCE. THE CHART AND TABLE PROVIDE SOME INDICATION OF THE RISKS OF
INVESTING IN THE FUND. THE CHART SHOWS HOW THE PERFORMANCE OF THE CLASS A SHARES
HAS VARIED FROM YEAR TO YEAR. THE TABLE COMPARES THE FUND'S PERFORMANCE OVER
TIME TO THAT OF THE MORGAN STANLEY CAPITAL INTERNATIONAL EAFE INDEX. THIS IS A
WIDELY RECOGNIZED, UNMANAGED INDEX OF COMMON STOCK PRICES AROUND THE WORLD. IT
ALSO SHOWS THE FUND'S RETURNS COMPARED TO THE LIPPER INTERNATIONAL FUND INDEX, A
COMPOSITE INDEX OF THE ANNUAL RETURN OF MUTUAL FUNDS THAT HAVE AN INVESTMENT
GOAL SIMILAR TO THAT OF THE FUND. THE FUND'S PAST PERFORMANCE DOES NOT
NECESSARILY INDICATE HOW THE FUND WILL PERFORM IN THE FUTURE.
THE RETURN FOR THE FUND'S OTHER CLASSES OF SHARES OFFERED BY THIS PROSPECTUS
WILL DIFFER FROM THE CLASS A RETURNS SHOWN IN THE BAR CHART, DEPENDING UPON THE
EXPENSES OF THAT CLASS. THE BAR CHART DOES NOT REFLECT ANY SALES CHARGE THAT YOU
MAY BE REQUIRED TO PAY UPON PURCHASE OR REDEMPTION OF THE FUND'S SHARES. ANY
SALES CHARGE WILL REDUCE YOUR RETURN. THE AVERAGE TOTAL RETURN TABLE SHOWS
RETURNS WITH THE MAXIMUM SALES CHARGE DEDUCTED. NO SALES CHARGE HAS BEEN APPLIED
TO THE INDICES USED FOR COMPARISON IN THE TABLE.
<PAGE>
CWVF INTERNATIONAL EQUITY
YEAR-BY-YEAR TOTAL RETURN
(CLASS A RETURN AT NAV)
[INSERT BAR CHART HERE]
BEST QUARTER (OF PERIODS SHOWN) Q4 '99 20.38%
WORST QUARTER (OF PERIODS SHOWN) Q3 '98 (14.82%)
AVERAGE ANNUAL TOTAL RETURNS (AS OF 12-31-99)
(WITH MAXIMUM SALES CHARGE DEDUCTED)
1 YEAR 5 YEAR 10 YEAR
CWVF INTERNATIONAL EQUITY: CLASS A1 23.94% 13.95% N/A
CWVF INTERNATIONAL EQUITY: CLASS B 23.37% N/A N/A
CWVF INTERNATIONAL EQUITY: CLASS C 27.82% 13.86% N/A
MSCI EAFE INDEX GD 27.30% 13.15% N/A
LIPPER INTERNATIONAL FUND INDEX 37.83% 15.96% N/A
1 INCEPTION "A" (7/31/92) 11.85%; MSCI EAFE INDEX GD 14.17%; AND LIPPER
INTERNATIONAL FUND INDEX 14.96%. THE MONTH END DATE OF 7/31/92 IS USED FOR
COMPARISON PURPOSES ONLY, ACTUAL FUND INCEPTION IS 7/2/92.
<PAGE>
CALVERT NEW VISION SMALL CAP
ADVISOR CALVERT ASSET MANAGEMENT COMPANY, INC.
SUBADVISOR AWAD ASSET MANAGEMENT, INC.
OBJECTIVE
NEW VISION SMALL CAP SEEKS TO PROVIDE LONG-TERM CAPITAL APPRECIATION BY
INVESTING PRIMARILY IN SMALL-CAP STOCKS THAT MEET THE FUND'S INVESTMENT AND
SOCIAL CRITERIA. THIS OBJECTIVE MAY BE CHANGED BY THE FUND'S BOARD OF
TRUSTEES/DIRECTORS WITHOUT SHAREHOLDER APPROVAL.
PRINCIPAL INVESTMENT STRATEGIES
AT LEAST 65% OF THE FUND'S ASSETS WILL BE INVESTED IN THE COMMON STOCKS OF
SMALL-CAP COMPANIES. RETURNS IN THE FUND WILL BE MOSTLY FROM THE CHANGES IN THE
PRICE OF THE FUND'S HOLDINGS (CAPITAL APPRECIATION).
THE FUND CURRENTLY DEFINES SMALL-CAP COMPANIES AS THOSE WITH MARKET
CAPITALIZATION OF $1 BILLION OR LESS AT THE TIME THE FUND INITIALLY INVESTS.
THE FUND INVESTS WITH THE PHILOSOPHY THAT LONG-TERM REWARDS TO INVESTORS WILL
COME FROM THOSE ORGANIZATIONS WHOSE PRODUCTS, SERVICES, AND METHODS ENHANCE THE
HUMAN CONDITION AND THE TRADITIONAL AMERICAN VALUES OF INDIVIDUAL INITIATIVE,
EQUALITY OF OPPORTUNITY AND COOPERATIVE EFFORT. INVESTMENTS ARE SELECTED ON THE
BASIS OF THEIR ABILITY TO CONTRIBUTE TO THE DUAL OBJECTIVES OF FINANCIAL
SOUNDNESS AND SOCIAL CRITERIA. SEE "INVESTMENT SELECTION PROCESS."
PRINCIPAL RISKS
YOU COULD LOSE MONEY ON YOUR INVESTMENT IN THE FUND, OR THE FUND COULD
UNDERPERFORM FOR ANY OF THE FOLLOWING REASONS:
- - THE STOCK MARKET GOES DOWN
- - THE INDIVIDUAL STOCKS IN THE FUND DO NOT PERFORM AS WELL AS EXPECTED
- - PRICES OF SMALL-CAP STOCKS MAY RESPOND TO MARKET ACTIVITY DIFFERENTLY THAN
LARGER MORE ESTABLISHED COMPANIES
AN INVESTMENT IN THE FUND IS NOT A BANK DEPOSIT AND IS NOT INSURED OR GUARANTEED
BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY.
NEW VISION SMALL CAP PERFORMANCE
THE BAR CHART AND TABLE BELOW SHOW THE FUND'S ANNUAL RETURNS AND ITS LONG-TERM
PERFORMANCE. THE CHART AND TABLE PROVIDE SOME INDICATION OF THE RISKS OF
INVESTING IN THE FUND. THE CHART SHOWS HOW THE PERFORMANCE OF THE CLASS A SHARES
HAS VARIED FROM YEAR TO YEAR. THE TABLE COMPARES THE FUND'S PERFORMANCE OVER
TIME TO THAT OF THE RUSSELL 2000 INDEX. THIS IS A WIDELY RECOGNIZED, UNMANAGED
INDEX OF COMMON STOCK PRICES. IT ALSO SHOWS THE FUND'S RETURNS COMPARED TO THE
<PAGE>
LIPPER SMALL-CAP CORE INDEX, A COMPOSITE INDEX OF THE ANNUAL RETURN OF MUTUAL
FUNDS THAT HAVE AN INVESTMENT GOAL SIMILAR TO THAT OF THE FUND. THE FUND'S PAST
PERFORMANCE DOES NOT NECESSARILY INDICATE HOW THE FUND WILL PERFORM IN THE
FUTURE.
THE RETURN FOR THE FUND'S OTHER CLASSES OF SHARES OFFERED BY THIS PROSPECTUS
WILL DIFFER FROM THE CLASS A RETURNS SHOWN IN THE BAR CHART, DEPENDING UPON THE
EXPENSES OF THAT CLASS. THE BAR CHART DOES NOT REFLECT ANY SALES CHARGE THAT YOU
MAY BE REQUIRED TO PAY UPON PURCHASE OR REDEMPTION OF THE FUND'S SHARES. ANY
SALES CHARGE WILL REDUCE YOUR RETURN. THE AVERAGE TOTAL RETURN TABLE SHOWS
RETURNS WITH THE MAXIMUM SALES CHARGE DEDUCTED. NO SALES CHARGE HAS BEEN APPLIED
TO THE INDICES USED FOR COMPARISON IN THE TABLE.
NEW VISION SMALL CAP
YEAR-BY-YEAR TOTAL RETURN
(CLASS A RETURN AT NAV)
[INSERT BAR CHART HERE]
BEST QUARTER (OF PERIODS SHOWN) Q4 '99 23.57%
WORST QUARTER (OF PERIODS SHOWN) Q3 '98 (21.82%)
AVERAGE ANNUAL TOTAL RETURNS (AS OF 12-31-99)
(WITH MAXIMUM SALES CHARGE DEDUCTED)
1 YEAR 5 YEAR 10 YEAR
NEW VISION SMALL CAP: CLASS A1 17.15% N/A N/A
NEW VISION SMALL CAP: CLASS B 16.53% N/A N/A
NEW VISION SMALL CAP: CLASS C 21.09% N/A N/A
RUSSELL 2000 INDEX TR 21.26% N/A N/A
LIPPER SMALL-CAP CORE INDEX 20.17% N/A N/A
1 FROM INCEPTION (1/31/97) 2.06%; RUSSELL 2000 INDEX TR 12.69%;
LIPPER SMALL-CAP CORE INDEX 11.79%.
<PAGE>
CSIF BOND
ADVISOR CALVERT ASSET MANAGEMENT COMPANY, INC.
OBJECTIVE
CSIF BOND SEEKS TO PROVIDE AS HIGH A LEVEL OF CURRENT INCOME AS IS CONSISTENT
WITH PRUDENT INVESTMENT RISK AND PRESERVATION OF CAPITAL THROUGH INVESTMENT IN
BONDS AND OTHER STRAIGHT DEBT SECURITIES MEETING THE FUND'S INVESTMENT AND
SOCIAL CRITERIA.
PRINCIPAL INVESTMENT STRATEGIES
THE FUND USES AN ACTIVE STRATEGY, SEEKING RELATIVE VALUE TO EARN INCREMENTAL
INCOME. THE FUND TYPICALLY INVESTS AT LEAST 65% OF ITS ASSETS IN INVESTMENT
GRADE DEBT SECURITIES.
THE FUND INVESTS WITH THE PHILOSOPHY THAT LONG-TERM REWARDS TO INVESTORS WILL
COME FROM THOSE ORGANIZATIONS WHOSE PRODUCTS, SERVICES, AND METHODS ENHANCE THE
HUMAN CONDITION AND THE TRADITIONAL AMERICAN VALUES OF INDIVIDUAL INITIATIVE,
EQUALITY OF OPPORTUNITY AND COOPERATIVE EFFORT. INVESTMENTS ARE SELECTED ON THE
BASIS OF THEIR ABILITY TO CONTRIBUTE TO THE DUAL OBJECTIVES OF FINANCIAL
SOUNDNESS AND SOCIAL CRITERIA. SEE "INVESTMENT SELECTION PROCESS."
PRINCIPAL RISKS
YOU COULD LOSE MONEY ON YOUR INVESTMENT IN THE FUND, OR THE FUND COULD
UNDERPERFORM, FOR ANY OF THE FOLLOWING REASONS:
- - THE BOND MARKET GOES DOWN
- - THE INDIVIDUAL BONDS IN THE FUND DO NOT PERFORM AS WELL AS EXPECTED
- - THE ADVISOR'S FORECAST AS TO INTEREST RATES IS NOT CORRECT
- - THE ADVISOR'S ALLOCATION AMONG DIFFERENT SECTORS OF THE BOND MARKET DOES
NOT PERFORM AS WELL AS EXPECTED
- - THE FUND IS NON-DIVERSIFIED. COMPARED TO OTHER FUNDS, THE FUND MAY INVEST
MORE OF ITS ASSETS IN A SMALLER NUMBER OF COMPANIES. GAINS OR LOSSES ON A SINGLE
BOND MAY HAVE GREATER IMPACT ON THE FUND.
THE FUND'S ACTIVE TRADING STRATEGY MAY CAUSE THE FUND TO HAVE A RELATIVELY HIGH
AMOUNT OF SHORT TERM CAPITAL GAINS, WHICH ARE TAXABLE TO YOU AT THE ORDINARY
INCOME TAX RATE.
AN INVESTMENT IN THE FUND IS NOT A BANK DEPOSIT AND IS NOT INSURED OR GUARANTEED
BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY.
<PAGE>
CSIF BOND PERFORMANCE
THE BAR CHART AND TABLE BELOW SHOW THE FUND'S ANNUAL RETURNS AND ITS LONG-TERM
PERFORMANCE. THE CHART AND TABLE PROVIDE SOME INDICATION OF THE RISKS OF
INVESTING IN THE FUND. THE CHART SHOWS HOW THE PERFORMANCE OF THE CLASS A SHARES
HAS VARIED FROM YEAR TO YEAR. THE TABLE COMPARES THE FUND'S PERFORMANCE OVER
TIME TO THAT OF THE LEHMAN AGGREGATE BOND INDEX. THIS IS A WIDELY RECOGNIZED,
UNMANAGED INDEX OF BOND PRICES. IT ALSO SHOWS THE FUND'S RETURNS COMPARED TO THE
LIPPER A RATED BOND FUND INDEX, A COMPOSITE INDEX OF THE ANNUAL RETURN OF MUTUAL
FUNDS THAT HAVE AN INVESTMENT GOAL SIMILAR TO THAT OF THE FUND. THE FUND'S PAST
PERFORMANCE DOES NOT NECESSARILY INDICATE HOW THE FUND WILL PERFORM IN THE
FUTURE.
THE RETURN FOR THE FUND'S OTHER CLASSES OF SHARES OFFERED BY THIS PROSPECTUS
WILL DIFFER FROM THE CLASS A RETURNS SHOWN IN THE BAR CHART, DEPENDING UPON THE
EXPENSES OF THAT CLASS. THE BAR CHART DOES NOT REFLECT ANY SALES CHARGE THAT YOU
MAY BE REQUIRED TO PAY UPON PURCHASE OR REDEMPTION OF THE FUND'S SHARES. ANY
SALES CHARGE WILL REDUCE YOUR RETURN. THE AVERAGE TOTAL RETURN TABLE SHOWS
RETURNS WITH THE MAXIMUM SALES CHARGE DEDUCTED. NO SALES CHARGE HAS BEEN APPLIED
TO THE INDICES USED FOR COMPARISON IN THE TABLE.
<PAGE>
CSIF BOND
YEAR-BY-YEAR TOTAL RETURN
(CLASS A RETURN AT NAV)
[INSERT BAR CHART HERE]
BEST QUARTER (OF PERIODS SHOWN) Q3 '91 5.99%
WORST QUARTER (OF PERIODS SHOWN) Q1 '94 (3.57%)
AVERAGE ANNUAL TOTAL RETURNS (AS OF 12-31-99)
(WITH MAXIMUM SALES CHARGE DEDUCTED)
1 YEAR 5 YEAR 10 YEAR
CSIF BOND: CLASS A (3.09%) 6.43% 6.80%
CSIF BOND: CLASS B (4.60%) N/A N/A
CSIF BOND: CLASS C (1.71%) N/A N/A
LEHMAN AGGREGATE BOND INDEX TR
(0.82%) 7.73% 7.70%
LIPPER A RATED BOND FUND INDEX
(2.04%) 7.25% 7.36%
<PAGE>
CSIF MONEY MARKET
ADVISOR CALVERT ASSET MANAGEMENT COMPANY, INC.
OBJECTIVE
CSIF MONEY MARKET SEEKS TO PROVIDE THE HIGHEST LEVEL OF CURRENT INCOME,
CONSISTENT WITH LIQUIDITY, SAFETY AND SECURITY OF CAPITAL, THROUGH INVESTMENT IN
MONEY MARKET INSTRUMENTS MEETING THE FUND'S INVESTMENT AND SOCIAL CRITERIA.
PRINCIPAL INVESTMENT STRATEGIES
THE FUND INVESTS IN HIGH QUALITY, MONEY MARKET INSTRUMENTS, SUCH AS COMMERCIAL
PAPER, VARIABLE RATE DEMAND NOTES, CORPORATE, AGENCY AND TAXABLE MUNICIPAL
OBLIGATIONS. ALL INVESTMENTS MUST COMPLY WITH THE SEC MONEY MARKET FUND
REQUIREMENTS.
THE FUND INVESTS WITH THE PHILOSOPHY THAT LONG-TERM REWARDS TO INVESTORS WILL
COME FROM THOSE ORGANIZATIONS WHOSE PRODUCTS, SERVICES, AND METHODS ENHANCE THE
HUMAN CONDITION AND THE TRADITIONAL AMERICAN VALUES OF INDIVIDUAL INITIATIVE,
EQUALITY OF OPPORTUNITY AND COOPERATIVE EFFORT. INVESTMENTS ARE SELECTED ON THE
BASIS OF THEIR ABILITY TO CONTRIBUTE TO THE DUAL OBJECTIVES OF FINANCIAL
SOUNDNESS AND SOCIAL CRITERIA. SEE "INVESTMENT SELECTION PROCESS."
PRINCIPAL RISKS
THE FUND'S YIELD WILL CHANGE IN RESPONSE TO MARKET INTEREST RATES. IN GENERAL,
AS MARKET RATES GO UP SO WILL THE FUND'S YIELD, AND VICE VERSA. ALTHOUGH THE
FUND TRIES TO KEEP THE VALUE OF ITS SHARES CONSTANT AT $1.00 PER SHARE, EXTREME
CHANGES IN MARKET RATES, AND OR SUDDEN CREDIT DETERIORATION OF A HOLDING COULD
CAUSE THE VALUE TO DECREASE. THE FUND LIMITS THE AMOUNT IT INVESTS IN ANY ONE
ISSUER TO TRY TO LESSEN ITS EXPOSURE.
AN INVESTMENT IN THE FUND IS NOT A BANK DEPOSIT AND IS NOT INSURED OR GUARANTEED
BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY.
ALTHOUGH THE FUND SEEKS TO PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER
SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUND.
<PAGE>
CSIF MONEY MARKET PERFORMANCE
THE BAR CHART AND TABLE BELOW SHOW THE FUND'S ANNUAL RETURNS AND ITS LONG-TERM
PERFORMANCE. THE CHART AND TABLE PROVIDE SOME INDICATION OF THE RISKS OF
INVESTING IN THE FUND. THE CHART SHOWS HOW THE PERFORMANCE HAS VARIED FROM YEAR
TO YEAR. THE TABLE COMPARES THE FUND'S RETURNS OVER TIME TO THE LIPPER MONEY
MARKET FUND INDEX, A COMPOSITE INDEX OF THE ANNUAL RETURN OF MUTUAL FUNDS THAT
HAVE AN INVESTMENT GOAL SIMILAR TO THAT OF THE FUND. THE FUND'S PAST PERFORMANCE
DOES NOT NECESSARILY INDICATE HOW THE FUND WILL PERFORM IN THE FUTURE.
CSIF MONEY MARKET
YEAR-BY-YEAR TOTAL RETURN
[INSERT BAR CHART HERE]
BEST QUARTER (OF PERIODS SHOWN) Q1 '90 1.89%
WORST QUARTER (OF PERIODS SHOWN) Q2 '93 0.59%
AVERAGE ANNUAL TOTAL RETURNS (AS OF 12-31-99)
1 YEAR 5 YEAR 10 YEAR
CSIF MONEY MARKET 4.65% 4.92% 4.73%
LIPPER MONEY MARKET FUND INDEX 4.74% 5.10% 4.91%
FOR CURRENT YIELD INFORMATION, CALL 800-368-2745, OR VISIT CALVERT GROUP'S
WEBSITE AT WWW.CALVERT.COM.
<PAGE>
FEES AND EXPENSES
THIS TABLE DESCRIBES THE FEES AND EXPENSES THAT YOU MAY PAY IF YOU BUY AND HOLD
SHARES OF A FUND. SHAREHOLDER FEES ARE PAID DIRECTLY FROM YOUR ACCOUNT; ANNUAL
FUND OPERATING EXPENSES ARE DEDUCTED FROM FUND ASSETS.
COLUNMS
1 CSIF BALANCED10
2 CSIF MANAGED INDEX
3 CSIF EQUITY10
4.CAPITAL ACCUMULATION10
5 CWVF INTERNATIONAL EQUITY
6 CALVERT NEW VISION SMALL CAP
7.CSIF BOND
8 CSIF MONEY MARKET9
CLASS A
SHAREHOLDER FEES
MAXIMUM SALES CHARGE (LOAD) IMPOSED ON
PURCHASES (AS A PERCENTAGE OF OFFERING PRICE)
4.75 4.75 4.75 4.75 4.75 4.75 3.75 NONE
MAXIMUM DEFERRED SALES CHARGE (LOAD)
(AS A PERCENTAGE OF PURCHASE OR REDEMPTION
PROCEEDS, WHICHEVER IS LOWER)
MAXIMUM ACCOUNT FEE
NONE2 NONE2 NONE2 NONE2 NONE2 NONE2 NONE2 NONE
3 4
ANNUAL FUND OPERATING EXPENSES1
MANAGEMENT FEE
.70 .75 .70 .90 1.10 1.00 .55 .50
DISTRIBUTION AND SERVICE (12B-1) FEES
.24 .25 .23 .35 .25 .25 .20 .00
OTHER EXPENSES
.25 .59 .35 .48 .52 .71 .38 .40
TOTAL ANNUAL FUND OPERATING EXPENSES
1.19 1.59 1.28 1.73 1.87 1.96 1.13 .90
FEE WAIVER AND/OR EXPENSE REIMBURSEMENT5
(.34) (.03)
NET EXPENSES
1.25 .87
CLASS B
SHAREHOLDER FEES
MAXIMUM SALES CHARGE (LOAD) IMPOSED ON
PURCHASES (AS A PERCENTAGE OF OFFERING PRICE)
NONE NONE NONE NONE NONE NONE NONE N/A
MAXIMUM DEFERRED SALES CHARGE (LOAD)
(AS A PERCENTAGE OF PURCHASE OR REDEMPTION
PROCEEDS, WHICHEVER IS LOWER)
5%6 5%6 5%6 5%6 5%6 5%6 4%7 N/A
MAXIMUM ACCOUNT FEE
3
ANNUAL FUND OPERATING EXPENSES1
MANAGEMENT FEES
.70 .75 .70 .90 1.10 1.00 .55 N/A
DISTRIBUTION AND SERVICE (12B-1) FEES
1.00 1.00 1.00 1.00 1.00 1.00 1.00 N/A
OTHER EXPENSES
.72 .92 .79 .77 1.52 1.87 1.17
TOTAL ANNUAL FUND OPERATING EXPENSES
2.42 2.67 2.49 2.67 3.62 3.87 2.72
FEE WAIVER AND/OR EXPENSE REIMBURSEMENT5
(.17) (.46) (.86) (.22)
NET EXPENSES
2.50 3.16 3.01 2.50
<PAGE>
FEES AND EXPENSES (CONT'D)
CLASS C
SHAREHOLDER FEES
MAXIMUM SALES CHARGE (LOAD) IMPOSED
ON PURCHASES(AS A PERCENTAGE OF OFFERING PRICE)
NONE NONE NONE NONE NONE NONE NONE N/A
MAXIMUM DEFERRED SALES CHARGE (LOAD)
(AS A PERCENTAGE OF PURCHASE OR REDEMPTION
PROCEEDS, WHICHEVER IS LOWER)
1%8 1%8 1%8 1%8 1%8 1%8 1%8 N/A
MAXIMUM ACCOUNT FEE
3
ANNUAL FUND OPERATING EXPENSES 1
MANAGEMENT FEES
.70 .75 .70 .90 1.10 1.00 .55 N/A
DISTRIBUTION AND SERVICE (12B-1) FEES
1.00 1.00 1.00 1.00 1.00 1.00 1.00 N/A
OTHER EXPENSES
.51 .93 .58 .66 .73 .87 1.30
TOTAL ANNUAL FUND OPERATING EXPENSES
2.21 2.68 2.28 2.56 2.83 2.87 2.85
FEE WAIVER AND/OR EXPENSE REIMBURSEMENT5
(.18) (.35)
NET EXPENSES
2.50 2.50
EXPLANATION OF FEES AND EXPENSES TABLE
1 EXPENSES ARE BASED ON EXPENSES FOR THE FUND'S MOST RECENT FISCAL YEAR,
UNLESS OTHERWISE INDICATED. MANAGEMENT FEES INCLUDE THE SUBADVISORY FEES PAID BY
THE ADVISOR ("CAMCO") TO THE SUBADVISORS, AND THE ADMINISTRATIVE FEE PAID BY THE
FUND TO CALVERT ADMINISTRATIVE SERVICES COMPANY, AN AFFILIATE OF CAMCO.
2 PURCHASES OF CLASS A SHARES FOR ACCOUNTS WITH $1 MILLION OR MORE ARE NOT
SUBJECT TO FRONT-END SALES CHARGES, BUT MAY BE SUBJECT TO A 1% CONTINGENT
DEFERRED SALES CHARGE ON SHARES REDEEMED WITHIN 1 YEAR OF PURCHASE. (SEE "HOW TO
BUY SHARES" - CLASS A).
3 FOR EACH ACCOUNT WITH A BALANCE OF LESS THAN $5000 (LESS THAN $1000 FOR
IRAS), THE FUND CHARGES A MONTHLY ACCOUNT MAINTENANCE FEE OF $1.
4 FOR EACH ACCOUNT WITH A BALANCE OF LESS THAN $1000, THE FUND CHARGES A
MONTHLY ACCOUNT MAINTENANCE FEE OF $3.
5 CAMCO HAS AGREED TO WAIVE FEES AND OR REIMBURSE EXPENSES (NET OF ANY
EXPENSE OFFSET ARRANGEMENTS) FOR CERTAIN OF THE FUNDS THROUGH JANUARY 31, 2001:
CSIF MONEY MARKET, CSIF BOND (CLASS B AND C), CSIF MANAGED INDEX (CLASS A, B AND
C), CWVF INTERNATIONAL EQUITY (CLASS B), AND NEW VISION (CLASS B). "NET
EXPENSES" IS THE MAXIMUM AMOUNT THAT MAY BE CHARGED TO THESE FUNDS FOR THIS
PERIOD, EXCLUDING ANY EXPENSE OFFSET ARRANGEMENT.
6 A CONTINGENT DEFERRED SALES CHARGE IS IMPOSED ON THE PROCEEDS OF CLASS B
SHARES REDEEMED WITHIN 6 YEARS, SUBJECT TO CERTAIN EXCEPTIONS. THE CHARGE IS A
PERCENTAGE OF NET ASSET VALUE AT THE TIME OF PURCHASE OR REDEMPTION, WHICHEVER
IS LESS, AND DECLINES FROM 5% IN THE FIRST YEAR THAT SHARES ARE HELD, TO 4% IN
THE SECOND AND THIRD YEAR, 3% IN THE FOURTH YEAR, 2% IN THE FIFTH YEAR, AND 1%
IN THE SIXTH YEAR. THERE IS NO CHARGE ON REDEMPTIONS OF CLASS B SHARES HELD FOR
MORE THAN SIX YEARS. SEE "CALCULATION OF CONTINGENT DEFERRED SALES CHARGE."
<PAGE>
EXPLANATION OF FEES AND EXPENSES TABLE (CONT'D)
7 A CONTINGENT DEFERRED SALES CHARGE IS IMPOSED ON THE PROCEEDS OF CLASS B
SHARES OF CSIF BOND REDEEMED WITHIN 4 YEARS, SUBJECT TO CERTAIN EXCEPTIONS. THE
CHARGE IS A PERCENTAGE OF NET ASSET VALUE AT THE TIME OF PURCHASE OR REDEMPTION,
WHICHEVER IS LESS, AND DECLINES FROM 4% IN THE FIRST YEAR THAT SHARES ARE HELD,
TO 3% IN THE SECOND, 2% IN THE THIRD YEAR, AND 1% IN THE FOURTH YEAR. THERE IS
NO CHARGE ON REDEMPTIONS OF CLASS B SHARES HELD FOR MORE THAN FOUR YEARS. SEE
"CALCULATION OF CONTINGENT DEFERRED SALES CHARGE."
8 A CONTINGENT DEFERRED SALES CHARGE OF 1% IS IMPOSED ON THE PROCEEDS OF
CLASS C SHARES REDEEMED WITHIN ONE YEAR. THE CHARGE IS A PERCENTAGE OF NET ASSET
VALUE AT THE TIME OF PURCHASE OR REDEMPTION, WHICHEVER IS LESS. SEE "CALCULATION
OF CONTINGENT DEFERRED SALES CHARGE."
9 FOR CSIF MONEY MARKET, CLASS A REFERS TO CLASS O.
10 THE MANAGEMENT FEES FOR CSIF BALANCED, CSIF EQUITY AND CAPITAL ACCUMULATION
HAVE BEEN RESTATED TO REFLECT CHANGES APPROVED BY SHAREHOLDERS IN EARLY 1999.
EXAMPLE
THIS EXAMPLE IS INTENDED TO HELP YOU COMPARE THE COST OF INVESTING IN A FUND
WITH THE COST OF INVESTING IN OTHER MUTUAL FUNDS. THE EXAMPLE ASSUMES THAT:
- - YOU INVEST $10,000 IN THE FUND FOR THE TIME PERIODS INDICATED;
- - YOUR INVESTMENT HAS A 5% RETURN EACH YEAR; AND
- - THE FUND'S OPERATING EXPENSES REMAIN THE SAME.
ALTHOUGH YOUR ACTUAL COSTS MAY BE HIGHER OR LOWER, UNDER THESE ASSUMPTIONS YOUR
COSTS WOULD BE:
1.CLASS A
2.CLASS B (WITH REDEMPTION)
3.CLASS B (NO REDEMPTION)
4.CLASS C (WITH REDEMPTION)
5.CLASS C (NO REDEMPTION)
NUMBER OF YEARS INVESTMENT IS HELD
CSIF BALANCED
1 591 745 245 324 224
3 835 1,115 755 691 691
5 1,098 1,491 1,291 1,185 1,185
10 1,850 2,451 2,451 2,544 2,544
CSIF MANAGED INDEX
1 596 753 253 353 253
3 921 1,213 813 815 815
5 1,269 1,600 1,400 1,404 1,404
10 2,247 2,728 2,728 2,999 2,999
<PAGE>
[INSERT HEADINGS]
NUMBER OF YEARS INVESTMENT IS HELD
CSIF EQUITY
1 599 752 252 331 231
3 862 1,176 776 712 712
5 1,144 1,526 1,326 1,220 1,220
10 1,947 2,527 2,527 2,615 2,615
CAPITAL ACCUMULATION
1 642 770 270 359 259
3 994 1,229 829 796 796
5 1,369 1,615 1,415 1,360 1,360
10 2,419 2,775 2,775 2,895 2,895
CWVF INTERNATIONAL EQUITY
1 656 819 319 386 286
3 1,035 1,466 1,066 877 877
5 1,438 2,035 1,835 1,494 1,494
10 2,561 3,460 3,460 3,157 3,157
CALVERT NEW VISION SMALL CAP
1 665 804 304 390 290
3 1,061 1,502 1,102 889 889
5 1,482 2,119 1,919 1,513 1,513
10 2,652 3,624 3,624 3,195 3,195
CSIF BOND
1 486 653 253 353 253
3 721 1,024 824 850 850
5 974 1,420 1,420 1,473 1,473
10 1,698 2,289 2,289 3,151 3,151
CSIF MONEY MARKET
(CLASS A REFERS TO CLASS O FOR CSIF MONEY MARKET)
1 89 N/A N/A N/A N/A
3 284 N/A N/A N/A N/A
5 496 N/A N/A N/A N/A
10 1,105 N/A N/A N/A N/A
<PAGE>
PRINCIPAL INVESTMENT PRACTICES AND RISKS
THE MOST CONCISE DESCRIPTION OF EACH FUND'S PRINCIPAL INVESTMENT STRATEGIES AND
ASSOCIATED RISKS IS UNDER THE EARLIER SUMMARY FOR EACH FUND. THE FUNDS ARE ALSO
PERMITTED TO INVEST IN CERTAIN OTHER INVESTMENTS AND TO USE CERTAIN INVESTMENT
TECHNIQUES THAT HAVE HIGHER RISKS ASSOCIATED WITH THEM. ON THE FOLLOWING PAGES
ARE BRIEF DESCRIPTIONS OF THE INVESTMENTS AND TECHNIQUES SUMMARIZED EARLIER
ALONG WITH CERTAIN ADDITIONAL INVESTMENT TECHNIQUES AND THEIR RISKS.
FOR EACH OF THE INVESTMENT PRACTICES LISTED, THE TABLE BELOW SHOWS EACH FUND'S
LIMITATIONS AS A PERCENTAGE OF ITS ASSETS AND THE PRINCIPAL TYPES OF RISK
INVOLVED. (SEE THE PAGES FOLLOWING THE TABLE FOR A DESCRIPTION OF THE TYPES OF
RISKS). NUMBERS IN THIS TABLE SHOW MAXIMUM ALLOWABLE AMOUNT ONLY; FOR ACTUAL
USAGE, CONSULT THE FUND'S ANNUAL/SEMI-ANNUAL REPORTS.
KEY TO TABLE
@ FUND CURRENTLY USES
O PERMITTED, BUT NOT TYPICALLY USED
(% OF ASSETS ALLOWABLE, IF RESTRICTED)
X NOT PERMITTED
XN ALLOWED UP TO X% OF FUND'S NET ASSETS
XT ALLOWED UP TO X% OF FUND'S TOTAL ASSETS
N/A NOT APPLICABLE TO THIS TYPE OF FUND
COLUMN 1 = EXPLANATION OF PRACTICE
COLUMN 2 = CSIF BALANCED
COLUMN 3 = CSIF MANAGED INDEX
COLUMN 4 = CSIF EQUITY
COLUMN 5 = CAPITAL ACCUMULATION
COLUMN 2 = CWVF INTERNATIONAL EQUITY
COLUMN 7 = CALVERT NEW VISION SMALL CAP
COLUMN 8 = CSIF BOND
COLUMN 9 = CSIF MONEY MARKET
INVESTMENT PRACTICES
- -------------------------------------------------------------------------------
COLUMN 1 2 3 4 5 6 7 8 9
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
ACTIVE TRADING @ 0 0 0 0 0 @ NA
STRATEGY/TURNOVER
INVOLVES SELLING A
SECURITY SOON AFTER
PURCHASE. AN ACTIVE
TRADING STRATEGY
CAUSES A FUND TO HAVE
HIGHER PORTFOLIO
TURNOVER COMPARED TO
OTHER FUNDS AND
HIGHER TRANSACTION
COSTS, SUCH AS
COMMISSIONS AND
CUSTODIAN AND
SETTLEMENT FEES, AND
MAY INCREASE A FUND'S
TAX LIABILITY. RISKS:
OPPORTUNITY, MARKET
AND TRANSACTION.
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
TEMPORARY DEFENSIVE
POSITIONS. 0 0 0 0 0 0 0 NA
DURING ADVERSE (35T) (35T)
MARKET, ECONOMIC OR
POLITICAL CONDITIONS,
THE FUND MAY DEPART
FROM ITS PRINCIPAL
INVESTMENT STRATEGIES
BY INCREASING ITS
INVESTMENT IN U.S.
GOVERNMENT SECURITIES
AND OTHER SHORT-TERM
INTEREST-BEARING
SECURITIES. DURING
TIMES OF ANY
TEMPORARY DEFENSIVE
POSITIONS, A FUND MAY
NOT BE ABLE TO
ACHIEVE ITS
INVESTMENT OBJECTIVE
RISKS: OPPORTUNITY.
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
CONVENTIONAL
SECURITIES 25N -- 25N @ 25N 15T1 25N NA
FOREIGN SECURITIES.
SECURITIES ISSUED BY
COMPANIES LOCATED
OUTSIDE THE U.S.
AND/OR TRADED
PRIMARILY ON A
FOREIGN EXCHANGE.
RISKS: MARKET,
CURRENCY,
TRANSACTION,
LIQUIDITY,
INFORMATION AND
POLITICAL.
- -------------------------------------------------------------------------------
1 NEW VISION MAY INVEST ONLY IN AMERICAN DEPOSITARY RECEIPTS (ADRS) -
DOLLAR-DENOMINATED RECEIPTS REPRESENTING SHARES OF A FOREIGN ISSUER. ADRS ARE
TRADED ON U.S. EXCHANGES. SEE THE SAI.
<PAGE>
- -------------------------------------------------------------------------------
COLUMN 1 2 3 4 5 6 7 8 9
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
SMALL CAP STOCKS.
INVESTING IN SMALL 0 NA 0 0 0 @ NA NA
COMPANIES INVOLVES
GREATER RISK THAN
WITH MORE ESTABLISHED
COMPANIES. SMALL CAP
STOCK PRICES ARE MORE
VOLATILE AND THE
COMPANIES OFTEN HAVE
LIMITED PRODUCT
LINES, MARKETS,
FINANCIAL RESOURCES,
AND MANAGEMENT
EXPERIENCE. RISKS:
MARKET, LIQUIDITY AND
INFORMATION.
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
INVESTMENT GRADE
BONDS. BONDS RATED @ NA 0 0 0 0 @ NA
BBB/BAA OR HIGHER OR
COMPARABLE UNRATED
BONDS. RISKS:
INTEREST RATE, MARKET
AND CREDIT.
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
BELOW-INVESTMENT 20N3 NA 20N3 10N3 5N3 5N3 20N3 NA
GRADE BONDS. BONDS
RATED BELOW BBB/BAA
OR COMPARABLE UNRATED
BONDS ARE CONSIDERED
JUNK BONDS. THEY ARE
SUBJECT TO GREATER
CREDIT RISK THAN
INVESTMENT GRADE
BONDS. RISKS: CREDIT,
MARKET, INTEREST
RATE, LIQUIDITY AND
INFORMATION.
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
UNRATED DEBT @ NA 0 0 0 0 @ @2
SECURITIES. BONDS
THAT HAVE NOT BEEN
RATED BY A RECOGNIZED
RATING AGENCY; THE
ADVISOR HAS
DETERMINED THE CREDIT
QUALITY BASED ON ITS
OWN RESEARCH. RISKS:
CREDIT, MARKET,
INTEREST RATE,
LIQUIDITY AND
INFORMATION.
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
ILLIQUID SECURITIES.
SECURITIES WHICH 15N 15N 15N 15N 15N 15N 15N 10N
CANNOT BE READILY
SOLD BECAUSE THERE IS
NO ACTIVE MARKET.
RISKS: LIQUIDITY,
MARKET AND
TRANSACTION.
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
UNLEVERAGED
DERIVATIVE SECURITIES @ NA 0 0 0 0 @ @4
ASSET-BACKED
SECURITIES.
SECURITIES ARE BACKED
BY UNSECURED DEBT,
SUCH AS CREDIT CARD
DEBT. THESE
SECURITIES ARE OFTEN
GUARANTEED OR
OVER-COLLATERALIZED
TO ENHANCE THEIR
CREDIT QUALITY.
RISKS: CREDIT,
INTEREST RATE AND
LIQUIDITY.
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
MORTGAGE-BACKED
SECURITIES. @ NA 0 0 0 0 @ 05
SECURITIES ARE BACKED
BY POOLS OF
MORTGAGES, INCLUDING
PASSTHROUGH
CERTIFICATES, AND
OTHER SENIOR CLASSES
OF COLLATERALIZED
MORTGAGE OBLIGATIONS
(CMOS). RISKS:
CREDIT, EXTENSION,
PREPAYMENT, LIQUIDITY
AND INTEREST RATE.
- -------------------------------------------------------------------------------
2 MUST BE MONEY-MARKET ELIGIBLE UNDER SEC RULE 2A-7.
3 EXCLUDES ANY HIGH SOCIAL IMPACT INVESTMENTS.
4 MUST BE MONEY-MARKET ELIGIBLE UNDER SEC RULE 2A-7.
5 MUST BE MONEY-MARKET ELIGIBLE UNDER SEC RULE 2A-7.
<PAGE>
- -------------------------------------------------------------------------------
COLUMN 1 2 3 4 5 6 7 8 9
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
UNLEVERAGED
DERIVATIVE
SECURITIES, (CON'T.)
PARTICIPATION 0 NA 0 0 0 0 0 06
INTERESTS. SECURITIES
REPRESENTING AN
INTEREST IN ANOTHER
SECURITY OR IN BANK
LOANS. RISKS: CREDIT,
INTEREST RATE AND
LIQUIDITY.
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
LEVERAGED DERIVATIVE
INSTRUMENTS CURRENCY
CONTRACTS. CONTRACTS 0 NA 0 5T 5T - - 0 NA
INVOLVING THE RIGHT
OR OBLIGATION TO BUY
OR SELL A GIVEN
AMOUNT OF FOREIGN
CURRENCY AT A
SPECIFIED PRICE AND
FUTURE DATE. RISKS:
CURRENCY, LEVERAGE,
CORRELATION,
LIQUIDITY AND
OPPORTUNITY.
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
OPTIONS ON SECURITIES
AND INDICES. 5T 5T 5T 5T 5T 5T 5T NA
CONTRACTS GIVING THE
HOLDER THE RIGHT BUT
NOT THE OBLIGATION TO
PURCHASE OR SELL A
SECURITY (OR THE CASH
VALUE, IN THE CASE OF
AN OPTION ON AN
INDEX) AT A SPECIFIED
PRICE WITHIN A
SPECIFIED TIME. IN
THE CASE OF SELLING
(WRITING) OPTIONS,
THE FUNDS WILL WRITE
CALL OPTIONS ONLY IF
THEY ALREADY OWN THE
SECURITY (IF IT IS
"COVERED"). RISKS:
INTEREST RATE,
CURRENCY, MARKET,
LEVERAGE,
CORRELATION,
LIQUIDITY, CREDIT AND
OPPORTUNITY.
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
FUTURES CONTRACT. 0 0 0 0 0 0 0 NA
AGREEMENT TO BUY OR 5N 5N 5N 5N 5N 5N 5N
SELL A SPECIFIC
AMOUNT OF A COMMODITY
OR FINANCIAL
INSTRUMENT AT A
PARTICULAR PRICE ON A
SPECIFIC FUTURE DATE.
RISKS: INTEREST RATE,
CURRENCY, MARKET,
LEVERAGE,
CORRELATION,
LIQUIDITY AND
OPPORTUNITY.
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
STRUCTURED SECURITIES
INDEXED AND/OR
LEVERAGED 0 NA NA NA 0 NA 0 NA
MORTGAGE-BACKED AND
OTHER DEBT
SECURITIES, INCLUDING
PRINCIPAL-ONLY AND
INTEREST-ONLY
SECURITIES, LEVERAGED
FLOATING RATE
SECURITIES, AND
OTHERS. THESE
SECURITIES TEND TO BE
HIGHLY SENSITIVE TO
INTEREST RATE
MOVEMENTS AND THEIR
PERFORMANCE MAY NOT
CORRELATE TO THESE
MOVEMENTS IN A
CONVENTIONAL FASHION.
RISKS: CREDIT,
INTEREST RATE,
EXTENSION,
PREPAYMENT, MARKET,
LEVERAGE, LIQUIDITY
AND CORRELATION.
- -------------------------------------------------------------------------------
6 MUST BE MONEY-MARKET ELIGIBLE UNDER SEC RULE 2A-7.
7 BASED ON NET PREMIUM PAYMENTS.
<PAGE>
THE FUNDS HAVE ADDITIONAL INVESTMENT POLICIES AND RESTRICTIONS THAT ARE NOT
PRINCIPAL TO THEIR INVESTMENT STRATEGIES (FOR EXAMPLE, REPURCHASE AGREEMENTS,
BORROWING, PLEDGING, AND REVERSE REPURCHASE AGREEMENTS, SECURITIES LENDING,
WHEN-ISSUED SECURITIES AND SHORT SALES.) THESE POLICIES AND RESTRICTIONS ARE
DISCUSSED IN THE STATEMENT OF ADDITIONAL INFORMATION ("SAI").
TYPES OF INVESTMENT RISK
CORRELATION RISK
THIS OCCURS WHEN A FUND "HEDGES"- USES ONE INVESTMENT TO OFFSET THE FUND'S
POSITION IN ANOTHER. IF THE TWO INVESTMENTS DO NOT BEHAVE IN RELATION TO ONE
ANOTHER THE WAY FUND MANAGERS EXPECT THEM TO, THEN UNEXPECTED OR UNDESIRED
RESULTS MAY OCCUR. FOR EXAMPLE, A HEDGE MAY ELIMINATE OR REDUCE GAINS AS WELL AS
OFFSET LOSSES.
CREDIT RISK
THE RISK THAT THE ISSUER OF A SECURITY OR THE COUNTERPARTY TO AN INVESTMENT
CONTRACT MAY DEFAULT OR BECOME UNABLE TO PAY ITS OBLIGATIONS WHEN DUE.
CURRENCY RISK
CURRENCY RISK OCCURS WHEN A FUND BUYS, SELLS OR HOLDS A SECURITY DENOMINATED IN
FOREIGN CURRENCY. FOREIGN CURRENCIES "FLOAT" IN VALUE AGAINST THE U.S. DOLLAR.
ADVERSE CHANGES IN FOREIGN CURRENCY VALUES CAN CAUSE INVESTMENT LOSSES WHEN A
FUND'S INVESTMENTS ARE CONVERTED TO U.S. DOLLARS.
EXTENSION RISK
THE RISK THAT AN UNEXPECTED RISE IN INTEREST RATES WILL EXTEND THE LIFE OF A
MORTGAGE-BACKED SECURITY BEYOND THE EXPECTED PREPAYMENT TIME, TYPICALLY REDUCING
THE SECURITY'S VALUE.
INFORMATION RISK
THE RISK THAT INFORMATION ABOUT A SECURITY OR ISSUER OR THE MARKET MIGHT NOT BE
AVAILABLE, COMPLETE, ACCURATE OR COMPARABLE.
INTEREST RATE RISK
THE RISK THAT CHANGES IN INTEREST RATES WILL ADVERSELY AFFECT THE VALUE OF AN
INVESTOR'S SECURITIES. WHEN INTEREST RATES RISE, THE VALUE OF FIXED-INCOME
SECURITIES WILL GENERALLY FALL. CONVERSELY, A DROP IN INTEREST RATES WILL
GENERALLY CAUSE AN INCREASE IN THE VALUE OF FIXED-INCOME SECURITIES. LONGER-TERM
SECURITIES AND ZERO COUPON/"STRIPPED" COUPON SECURITIES ("STRIPS") ARE SUBJECT
TO GREATER INTEREST RATE RISK.
<PAGE>
LEVERAGE RISK
THE RISK THAT OCCURS IN SOME SECURITIES OR TECHNIQUES WHICH TEND TO MAGNIFY THE
EFFECT OF SMALL CHANGES IN AN INDEX OR A MARKET. THIS CAN RESULT IN A LOSS THAT
EXCEEDS THE AMOUNT ACTUALLY INVESTED.
LIQUIDITY RISK
THE RISK THAT OCCURS WHEN INVESTMENTS CANNOT BE READILY SOLD. A FUND MAY HAVE TO
ACCEPT A LESS-THAN-DESIRABLE PRICE TO COMPLETE THE SALE OF AN ILLIQUID SECURITY
OR MAY NOT BE ABLE TO SELL IT AT ALL.
MANAGEMENT RISK
THE RISK THAT A FUND'S PORTFOLIO MANAGEMENT PRACTICES MIGHT NOT WORK TO ACHIEVE
THEIR DESIRED RESULT.
MARKET RISK
THE RISK THAT SECURITIES PRICES IN A MARKET, A SECTOR OR AN INDUSTRY WILL
FLUCTUATE, AND THAT SUCH MOVEMENTS MIGHT REDUCE AN INVESTMENT'S VALUE.
OPPORTUNITY RISK
THE RISK OF MISSING OUT ON AN INVESTMENT OPPORTUNITY BECAUSE THE ASSETS NEEDED
TO TAKE ADVANTAGE OF IT ARE COMMITTED TO LESS ADVANTAGEOUS INVESTMENTS OR
STRATEGIES.
POLITICAL RISK
THE RISK THAT MAY OCCUR WITH FOREIGN INVESTMENTS, AND MEANS THAT THE VALUE OF AN
INVESTMENT MAY BE ADVERSELY AFFECTED BY NATIONALIZATION, TAXATION, WAR,
GOVERNMENT INSTABILITY OR OTHER ECONOMIC OR POLITICAL ACTIONS OR FACTORS.
PREPAYMENT RISK
THE RISK THAT UNANTICIPATED PREPAYMENTS MAY OCCUR, REDUCING THE VALUE OF A
MORTGAGE-BACKED SECURITY. THE FUND MUST THEN REINVEST THOSE ASSETS AT THE
CURRENT, MARKET RATE WHICH MAY BE LOWER.
TRANSACTION RISK
THE RISK THAT A FUND MAY BE DELAYED OR UNABLE TO SETTLE A TRANSACTION OR THAT
COMMISSIONS AND SETTLEMENT EXPENSES MAY BE HIGHER THAN USUAL.
INVESTMENT SELECTION PROCESS
INVESTMENTS ARE SELECTED ON THE BASIS OF THEIR ABILITY TO CONTRIBUTE TO THE DUAL
OBJECTIVES OF FINANCIAL SOUNDNESS AND SOCIAL CRITERIA.
POTENTIAL INVESTMENTS FOR A FUND ARE FIRST SELECTED FOR FINANCIAL SOUNDNESS AND
THEN EVALUATED ACCORDING TO THAT FUND'S SOCIAL CRITERIA. TO THE GREATEST EXTENT
POSSIBLE, CALVERT SOCIAL INVESTMENT FUND (CSIF) AND CALVERT WORLD VALUES
<PAGE>
INTERNATIONAL EQUITY FUND (CWVF) SEEK TO INVEST IN COMPANIES THAT EXHIBIT
POSITIVE ACCOMPLISHMENTS WITH RESPECT TO ONE OR MORE OF THE SOCIAL CRITERIA.
INVESTMENTS FOR ALL FUNDS MUST MEET THE MINIMUM STANDARDS FOR ALL ITS FINANCIAL
AND SOCIAL CRITERIA.
ALTHOUGH EACH FUND'S SOCIAL CRITERIA TEND TO LIMIT THE AVAILABILITY OF
INVESTMENT OPPORTUNITIES MORE THAN IS CUSTOMARY WITH OTHER INVESTMENT COMPANIES,
CAMCO AND THE SUBADVISORS OF THE FUNDS BELIEVE THERE ARE SUFFICIENT INVESTMENT
OPPORTUNITIES TO PERMIT FULL INVESTMENT AMONG ISSUERS WHICH SATISFY EACH FUND'S
INVESTMENT AND SOCIAL OBJECTIVES.
THE SELECTION OF AN INVESTMENT BY A FUND DOES NOT CONSTITUTE ENDORSEMENT OR
VALIDATION BY THAT FUND, NOR DOES THE EXCLUSION OF AN INVESTMENT NECESSARILY
REFLECT FAILURE TO SATISFY THE FUND'S SOCIAL CRITERIA. INVESTORS ARE INVITED TO
SEND A BRIEF DESCRIPTION OF COMPANIES THEY BELIEVE MIGHT BE SUITABLE FOR
INVESTMENT.
SOCIALLY RESPONSIBLE INVESTMENT CRITERIA
THE FUNDS INVEST IN ACCORDANCE WITH THE PHILOSOPHY THAT LONG-TERM REWARDS TO
INVESTORS WILL COME FROM THOSE ORGANIZATIONS WHOSE PRODUCTS, SERVICES, AND
METHODS ENHANCE THE HUMAN CONDITION AND THE TRADITIONAL AMERICAN VALUES OF
INDIVIDUAL INITIATIVE, EQUALITY OF OPPORTUNITY AND COOPERATIVE EFFORT. IN
ADDITION, WE BELIEVE THAT THERE ARE LONG-TERM BENEFITS IN AN INVESTMENT
PHILOSOPHY THAT DEMONSTRATES CONCERN FOR THE ENVIRONMENT, LABOR RELATIONS, HUMAN
RIGHTS AND COMMUNITY RELATIONS. THOSE ENTERPRISES THAT EXHIBIT A SOCIAL
AWARENESS IN THESE ISSUES SHOULD BE BETTER PREPARED TO MEET FUTURE SOCIETAL
NEEDS. BY RESPONDING TO SOCIAL CONCERNS, THESE ENTERPRISES SHOULD NOT ONLY
AVOID THE LIABILITY THAT MAY BE INCURRED WHEN A PRODUCT OR SERVICE IS DETERMINED
TO HAVE A NEGATIVE SOCIAL IMPACT OR HAS OUTLIVED ITS USEFULNESS, BUT ALSO BE
BETTER POSITIONED TO DEVELOP OPPORTUNITIES TO MAKE A PROFITABLE CONTRIBUTION TO
SOCIETY. THESE ENTERPRISES SHOULD BE READY TO RESPOND TO EXTERNAL DEMANDS AND
ENSURE THAT OVER THE LONGER TERM THEY WILL BE VIABLE TO SEEK TO PROVIDE A
POSITIVE RETURN TO BOTH INVESTORS AND SOCIETY AS A WHOLE.
EACH FUND HAS DEVELOPED SOCIAL INVESTMENT CRITERIA, DETAILED BELOW. THESE
CRITERIA REPRESENT STANDARDS OF BEHAVIOR WHICH FEW, IF ANY, ORGANIZATIONS
TOTALLY SATISFY. AS A MATTER OF PRACTICE, EVALUATION OF A PARTICULAR
ORGANIZATION IN THE CONTEXT OF THESE CRITERIA WILL INVOLVE SUBJECTIVE JUDGMENT
BY CAMCO AND THE SUBADVISORS. ALL SOCIAL CRITERIA MAY BE CHANGED BY THE BOARD OF
TRUSTEES/DIRECTORS WITHOUT SHAREHOLDER APPROVAL.
<PAGE>
CALVERT SOCIAL INVESTMENT FUND
CSIF SEEKS TO INVEST IN COMPANIES THAT:
- - DELIVER SAFE PRODUCTS AND SERVICES IN WAYS THAT SUSTAIN OUR NATURAL
ENVIRONMENT. FOR EXAMPLE, CSIF LOOKS FOR COMPANIES THAT PRODUCE ENERGY FROM
RENEWABLE RESOURCES, WHILE AVOIDING CONSISTENT POLLUTERS.
- - MANAGE WITH PARTICIPATION THROUGHOUT THE ORGANIZATION IN DEFINING AND
ACHIEVING OBJECTIVES. FOR EXAMPLE, CSIF LOOKS FOR COMPANIES THAT OFFER EMPLOYEE
STOCK OWNERSHIP OR PROFIT-SHARING PLANS.
- - NEGOTIATE FAIRLY WITH THEIR WORKERS, PROVIDE AN ENVIRONMENT SUPPORTIVE OF
THEIR WELLNESS, DO NOT DISCRIMINATE ON THE BASIS OF RACE, GENDER, RELIGION, AGE,
DISABILITY, ETHNIC ORIGIN, OR SEXUAL ORIENTATION, DO NOT CONSISTENTLY VIOLATE
REGULATIONS OF THE EEOC, AND PROVIDE OPPORTUNITIES FOR WOMEN, DISADVANTAGED
MINORITIES, AND OTHERS FOR WHOM EQUAL OPPORTUNITIES HAVE OFTEN BEEN DENIED. FOR
EXAMPLE, CSIF CONSIDERS BOTH UNIONIZED AND NON-UNION FIRMS WITH GOOD LABOR
RELATIONS.
- - FOSTER AWARENESS OF A COMMITMENT TO HUMAN GOALS, SUCH AS CREATIVITY,
PRODUCTIVITY, SELF-RESPECT AND RESPONSIBILITY, WITHIN THE ORGANIZATION AND THE
WORLD, AND CONTINUALLY RECREATES A CONTEXT WITHIN WHICH THESE GOALS CAN BE
REALIZED. FOR EXAMPLE, CSIF LOOKS FOR COMPANIES WITH AN ABOVE AVERAGE
COMMITMENT TO COMMUNITY AFFAIRS AND CHARITABLE GIVING.
CSIF WILL NOT INVEST IN COMPANIES THAT THE ADVISOR DETERMINES TO BE
SIGNIFICANTLY ENGAGED IN:
- - BUSINESS ACTIVITIES IN SUPPORT OF REPRESSIVE REGIMES
- - PRODUCTION, OR THE MANUFACTURE OF EQUIPMENT, TO PRODUCE NUCLEAR ENERGY
- - MANUFACTURE OF WEAPON SYSTEMS
- - MANUFACTURE OF ALCOHOLIC BEVERAGES OR TOBACCO PRODUCTS
- - OPERATION OF GAMBLING CASINOS
- - A PATTERN AND PRACTICE OF VIOLATING THE RIGHTS OF INDIGENOUS PEOPLE. WE
URGE COMPANIES TO END NEGATIVE STEREOTYPES OF NATIVE AMERICANS AND OTHER
INDIGENOUS PEOPLES. FOR EXAMPLE, CSIF OBJECTS TO THE UNAUTHORIZED USE OF NAMES
AND IMAGES THAT PORTRAY NATIVE AMERICANS IN A NEGATIVE LIGHT, AND
SUPPORTS THE PROMOTION OF POSITIVE PORTRAYALS OF ALL INDIVIDUALS AND ETHNIC
GROUPS.
WITH RESPECT TO U.S. GOVERNMENT SECURITIES, CSIF INVESTS PRIMARILY IN DEBT
OBLIGATIONS ISSUED OR GUARANTEED BY AGENCIES OR INSTRUMENTALITIES OF THE U.S.
GOVERNMENT WHOSE PURPOSES FURTHER OR ARE COMPATIBLE WITH CSIF'S SOCIAL CRITERIA,
SUCH AS OBLIGATIONS OF THE STUDENT LOAN MARKETING ASSOCIATION, RATHER THAN
GENERAL OBLIGATIONS OF THE U.S. GOVERNMENT, SUCH AS TREASURY SECURITIES.
<PAGE>
CALVERT WORLD VALUES INTERNATIONAL EQUITY FUND
THE SPIRIT OF CALVERT WORLD VALUES INTERNATIONAL EQUITY FUND'S SOCIAL CRITERIA
IS SIMILAR TO CSIF, BUT THE APPLICATION OF THE SOCIAL ANALYSIS IS SIGNIFICANTLY
DIFFERENT. INTERNATIONAL INVESTING BRINGS UNIQUE CHALLENGES IN TERMS OF
CORPORATE DISCLOSURE, REGULATORY STRUCTURES, ENVIRONMENTAL STANDARDS, AND
DIFFERING NATIONAL AND CULTURAL PRIORITIES. DUE TO THESE FACTORS, THE CWVF
SOCIAL INVESTMENT STANDARDS ARE LESS STRINGENT THAN THOSE OF CSIF.
CWVF SEEKS TO INVEST IN COMPANIES THAT:
- - ACHIEVE EXCELLENCE IN ENVIRONMENTAL MANAGEMENT. WE SELECT INVESTMENTS
THAT TAKE POSITIVE STEPS TOWARD PRESERVING AND ENHANCING OUR NATURAL ENVIRONMENT
THROUGH THEIR OPERATIONS AND PRODUCTS. WE AVOID COMPANIES WITH POOR
ENVIRONMENTAL RECORDS.
- - HAVE POSITIVE LABOR PRACTICES. WE CONSIDER THE INTERNATIONAL LABOR
ORGANIZATION'S BASIC CONVENTIONS ON WORKER RIGHTS AS A GUIDELINE FOR OUR LABOR
CRITERIA. WE SEEK TO INVEST IN COMPANIES THAT HIRE AND PROMOTE WOMEN AND ETHNIC
MINORITIES; RESPECT THE RIGHT TO FORM UNIONS; COMPLY, AT A MINIMUM, WITH
DOMESTIC HOUR AND WAGE LAWS; AND PROVIDE GOOD HEALTH AND SAFETY STANDARDS. WE
AVOID COMPANIES THAT DEMONSTRATE A PATTERN OF ENGAGING IN FORCED, COMPULSORY, OR
CHILD LABOR.
CWVF AVOIDS INVESTING IN COMPANIES THAT:
- - CONTRIBUTE TO HUMAN RIGHTS ABUSES IN OTHER COUNTRIES1
- - PRODUCE NUCLEAR POWER OR NUCLEAR WEAPONS, OR HAVE MORE THAN 10% OF REVENUES
DERIVED FROM THE PRODUCTION OR SALE OF WEAPONS SYSTEMS
- - DERIVE MORE THAN 10% OF REVENUES FROM THE PRODUCTION OF ALCOHOL OR TOBACCO
PRODUCTS, BUT ACTIVELY SEEKS TO INVEST IN COMPANIES WHOSE PRODUCTS OR SERVICES
IMPROVE THE QUALITY OF OR ACCESS TO HEALTH CARE, INCLUDING PUBLIC HEALTH AND
PREVENTATIVE MEDICINE
1 CWVF MAY INVEST IN COMPANIES THAT OPERATE IN COUNTRIES WITH POOR HUMAN
RIGHTS RECORDS IF WE BELIEVE THE COMPANIES ARE MAKING A POSITIVE
CONTRIBUTION.
<PAGE>
CALVERT CAPITAL ACCUMULATION FUND
CALVERT NEW VISION SMALL CAP FUND
THE FUNDS CAREFULLY REVIEW COMPANY POLICIES AND BEHAVIOR REGARDING SOCIAL ISSUES
IMPORTANT TO QUALITY OF LIFE SUCH AS:
- - ENVIRONMENT
- - EMPLOYEE RELATIONS
- - PRODUCT CRITERIA
- - WEAPONS SYSTEMS
- - NUCLEAR ENERGY
- - HUMAN RIGHTS
BOTH FUNDS WILL AVOID INVESTING IN COMPANIES THAT HAVE:
- - SIGNIFICANT OR HISTORICAL PATTERNS OF VIOLATING ENVIRONMENTAL REGULATIONS,
OR OTHERWISE HAVE AN EGREGIOUS ENVIRONMENTAL RECORD
- - SIGNIFICANT OR HISTORICAL PATTERNS OF DISCRIMINATION AGAINST EMPLOYEES ON
THE BASIS OF RACE, GENDER, RELIGION, AGE, DISABILITY OR SEXUAL ORIENTATION, OR
THAT HAVE MAJOR LABOR-MANAGEMENT DISPUTES
- - NUCLEAR POWER PLANT OPERATORS AND OWNERS, OR MANUFACTURERS OF KEY
COMPONENTS IN THE NUCLEAR POWER PROCESS
- - SIGNIFICANTLY ENGAGED IN WEAPONS PRODUCTION( INCLUDING WEAPONS SYSTEMS
CONTRACTORS AND MAJOR NUCLEAR WEAPONS SYSTEMS CONTRACTORS)
- - SIGNIFICANTLY INVOLVED IN THE MANUFACTURE OF TOBACCO OR ALCOHOL PRODUCTS
- - PRODUCTS OR OFFER SERVICES THAT, UNDER PROPER USE, ARE CONSIDERED HARMFUL
CAPITAL ACCUMULATION WILL AVOID COMPANIES THAT THE ADVISOR DETERMINES TO BE
SIGNIFICANTLY ENGAGED IN:
- - A PATTERN AND PRACTICE OF VIOLATING THE RIGHTS OF INDIGENOUS PEOPLE. WE
URGE COMPANIES TO END NEGATIVE STEREOTYPES OF NATIVE AMERICANS AND OTHER
INDIGENOUS PEOPLES. FOR EXAMPLE, CAPITAL ACCUMULATION OBJECTS TO THE
UNAUTHORIZED USE OF NAMES AND IMAGES THAT PORTRAY NATIVE AMERICANS IN A NEGATIVE
LIGHT, AND SUPPORTS THE PROMOTION OF POSITIVE PORTRAYALS OF ALL INDIVIDUALS AND
ETHNIC GROUPS.
THE ADVISOR WILL SEEK TO REVIEW COMPANIES' OVERSEAS OPERATIONS CONSISTENT WITH
THE SOCIAL CRITERIA STATED ABOVE.
WHILE CAPITAL ACCUMULATION AND NEW VISION MAY INVEST IN COMPANIES THAT EXHIBIT
POSITIVE SOCIAL CHARACTERISTICS, THEY MAKE NO EXPLICIT CLAIMS TO SEEK OUT
COMPANIES WITH SUCH PRACTICES.
<PAGE>
HIGH SOCIAL IMPACT INVESTMENTS
CSIF BALANCED, BOND AND EQUITY, CALVERT WORLD VALUES INTERNATIONAL
EQUITY, CAPITAL ACCUMULATION AND NEW VISION SMALL CAP
HIGH SOCIAL IMPACT INVESTMENTS IS A PROGRAM THAT TARGETS A PERCENTAGE OF THE
FUND'S ASSETS (UP TO 1% FOR EACH OF CSIF BALANCED, CSIF EQUITY AND CSIF BOND AND
NEW VISION AND UP TO 3% FOR EACH OF CWVF INTERNATIONAL EQUITY AND CAPITAL
ACCUMULATION) TO DIRECTLY SUPPORT THE GROWTH OF COMMUNITY-BASED ORGANIZATIONS
FOR THE PURPOSES OF PROMOTING BUSINESS CREATION, HOUSING DEVELOPMENT, AND
ECONOMIC AND SOCIAL DEVELOPMENT OF URBAN AND RURAL COMMUNITIES. THESE TYPES OF
INVESTMENTS OFFER A RATE OF RETURN BELOW THE THEN-PREVAILING MARKET RATE, AND
ARE CONSIDERED ILLIQUID, UNRATED AND BELOW-INVESTMENT GRADE. THEY ALSO INVOLVE A
GREATER RISK OF DEFAULT OR PRICE DECLINE THAN INVESTMENT GRADE SECURITIES.
HOWEVER, THEY HAVE A SIGNIFICANT SOCIAL RETURN BY MAKING A TREMENDOUS DIFFERENCE
IN OUR LOCAL COMMUNITIES. HIGH SOCIAL IMPACT INVESTMENTS ARE VALUED UNDER THE
DIRECTION AND CONTROL OF THE FUNDS' BOARDS. THE PROGRAM IS ADMINISTERED BY THE
CALVERT SOCIAL INVESTMENT FOUNDATION, WHICH MAY RECEIVE A FEE FROM THE FUNDS.
THE FUNDS HAVE RECEIVED AN EXEMPTIVE ORDER TO PERMIT THEM TO INVEST THOSE ASSETS
ALLOCATED FOR INVESTMENT IN HIGH SOCIAL IMPACT INVESTMENTS THROUGH THE PURCHASE
OF COMMUNITY INVESTMENT NOTES FROM THE CALVERT SOCIAL INVESTMENT FOUNDATION. THE
CALVERT SOCIAL INVESTMENT FOUNDATION IS A NON-PROFIT ORGANIZATION, LEGALLY
DISTINCT FROM CALVERT GROUP, ORGANIZED AS A CHARITABLE AND EDUCATIONAL
FOUNDATION FOR THE PURPOSE OF INCREASING PUBLIC AWARENESS AND KNOWLEDGE OF THE
CONCEPT OF SOCIALLY RESPONSIBLE INVESTING. IT HAS INSTITUTED THE CALVERT
COMMUNITY INVESTMENTS PROGRAM TO RAISE ASSETS FROM INDIVIDUAL AND INSTITUTIONAL
INVESTORS AND THEN INVEST THESE ASSETS DIRECTLY IN NON-PROFIT OR NOT-FOR-PROFIT
COMMUNITY DEVELOPMENT ORGANIZATIONS AND COMMUNITY DEVELOPMENT BANKS THAT FOCUS
ON LOW INCOME HOUSING, ECONOMIC DEVELOPMENT AND BUSINESS DEVELOPMENT IN URBAN
AND RURAL COMMUNITIES.
SPECIAL EQUITIES
CSIF BALANCED AND CALVERT WORLD VALUES INTERNATIONAL EQUITY
CSIF BALANCED AND CWVF INTERNATIONAL EQUITY EACH HAVE A SPECIAL EQUITIES
INVESTMENT PROGRAM THAT ALLOWS THE FUND TO PROMOTE ESPECIALLY PROMISING
APPROACHES TO SOCIAL GOALS THROUGH PRIVATELY PLACED INVESTMENTS. THE INVESTMENTS
ARE GENERALLY VENTURE CAPITAL INVESTMENTS IN SMALL, UNTRIED ENTERPRISES. THE
SPECIAL EQUITIES COMMITTEE OF EACH FUND IDENTIFIES, EVALUATES, AND SELECTS THE
SPECIAL EQUITIES INVESTMENTS. SPECIAL EQUITIES INVOLVE A HIGH DEGREE OF RISK--
THEY ARE SUBJECT TO LIQUIDITY, INFORMATION, AND IF A DEBT INVESTMENT, CREDIT
RISK. SPECIAL EQUITIES ARE VALUED UNDER THE DIRECTION AND CONTROL OF THE FUNDS'
BOARDS.
<PAGE>
ABOUT CALVERT GROUP
CALVERT ASSET MANAGEMENT COMPANY, INC.(4550 MONTGOMERY AVENUE, SUITE 1000N,
BETHESDA, MD 20814) ("CAMCO") IS THE FUNDS' INVESTMENT ADVISOR. CAMCO PROVIDES
THE FUNDS WITH INVESTMENT SUPERVISION AND MANAGEMENT AND OFFICE SPACE; FURNISHES
EXECUTIVE AND OTHER PERSONNEL TO THE FUNDS, AND PAYS THE SALARIES AND FEES OF
ALL TRUSTEES/DIRECTORS WHO ARE AFFILIATED PERSONS OF THE ADVISOR. IT HAS BEEN
MANAGING MUTUAL FUNDS SINCE 1976. CALVERT IS THE INVESTMENT ADVISOR FOR OVER 25
MUTUAL FUND PORTFOLIOS, INCLUDING THE FIRST AND LARGEST FAMILY OF SOCIALLY
SCREENED FUNDS. AS OF DECEMBER 31, 1999, CALVERT HAD OVER $6 BILLION IN ASSETS
UNDER MANAGEMENT.
CAMCO USES A TEAM APPROACH TO ITS MANAGEMENT OF CSIF BOND (SINCE FEBRUARY 1997)
AND THE FIXED-INCOME ASSETS OF CSIF BALANCED (JUNE 1995). RENO J. MARTINI,
SENIOR VICE PRESIDENT AND CHIEF INVESTMENT OFFICER, HEADS THIS TEAM AND OVERSEES
THE INVESTMENT STRATEGY AND MANAGEMENT OF ALL CALVERT FUNDS FOR CAMCO WHILE
GREGORY HABEEB MANAGES THE DAY-TO-DAY INVESTMENTS OF CAMCO'S TAXABLE
FIXED-INCOME PORTFOLIOS. MR. HABEEB HAS OVER 19 YEARS OF EXPERIENCE AS AN
ANALYST, TRADER, AND PORTFOLIO MANAGER.
SUBADVISORS AND PORTFOLIO MANAGERS
BROWN CAPITAL MANAGEMENT, INC., 1201 NORTH CALVERT STREET, BALTIMORE, MARYLAND
21202 HAS MANAGED PART OF THE EQUITY INVESTMENTS OF CSIF BALANCED SINCE 1996,
AND CAPITAL ACCUMULATION SINCE 1994. IN 1997, BROWN CAPITAL BECAME THE SOLE
SUBADVISOR FOR CAPITAL ACCUMULATION. IT USES A BOTTOM-UP APPROACH THAT
INCORPORATES GROWTH-ADJUSTED PRICE EARNINGS, CONCENTRATING ON MID-/LARGE-CAP
GROWTH STOCKS.
EDDIE C. BROWN, FOUNDER AND PRESIDENT OF BROWN CAPITAL MANAGEMENT, INC., HEADS
THE PORTFOLIO MANAGEMENT TEAM FOR CAPITAL ACCUMULATION AND BROWN CAPITAL'S
PORTION OF CSIF BALANCED. HE BRINGS OVER 24 YEARS OF MANAGEMENT EXPERIENCE TO
THE FUNDS, AND HAS HELD POSITIONS WITH T. ROWE PRICE ASSOCIATES AND IRWING
MANAGEMENT COMPANY. MR. BROWN IS A FREQUENT PANELIST ON "WALL STREET WEEK WITH
LOUIS RUKEYSER" AND IS A MEMBER OF THE WALL STREET WEEK HALL OF FAME.
NCM CAPITAL MANAGEMENT GROUP, INC., 103 WEST MAIN STREET, DURHAM, NC 27701, HAS
MANAGED PART OF THE EQUITY INVESTMENTS OF CSIF BALANCED SINCE 1995. NCM IS ONE
OF THE LARGEST MINORITY-OWNED INVESTMENT MANAGEMENT FIRMS IN THE COUNTRY AND
PROVIDES PRODUCTS IN EQUITY FIXED INCOME AND BALANCED PORTFOLIO MANAGEMENT. IT
IS ALSO ONE OF THE INDUSTRY LEADERS IN THE EMPLOYMENT AND TRAINING OF MINORITY
AND WOMEN INVESTMENT PROFESSIONALS.
<PAGE>
NCM'S PORTFOLIO MANAGEMENT TEAM CONSISTS OF SEVERAL MEMBERS, HEADED BY MACEO K.
SLOAN. MR. SLOAN HAS MORE THAN 12 YEARS OF EXPERIENCE IN THE INVESTMENT
INDUSTRY, AND IS A FREQUENT PANELIST ON WALL STREET WEEK WITH LOUIS RUKEYSER.
STATE STREET GLOBAL ADVISORS (SSGA); 225 FRANKLIN ST., BOSTON, MA 02110, WAS
ESTABLISHED IN 1978 AS AN INVESTMENT MANAGEMENT DIVISION OF THE STATE STREET
BANK AND TRUST COMPANY. SSGA IS A PIONEER IN THE DEVELOPMENT OF DOMESTIC AND
INTERNATIONAL INDEX FUNDS, AND HAS MANAGED CSIF MANAGED INDEX SINCE ITS
INCEPTION.
SSGA'S PORTFOLIO MANAGEMENT TEAM CONSISTS OF SEVERAL MEMBERS, HEADED BY ARLENE
ROCKEFELLER. SHE JOINED SSGA IN 1982, WITH 10 YEARS EXPERIENCE IN INVESTMENT
COMPUTER SYSTEMS. MS. ROCKEFELLER IS CURRENTLY DIRECTOR OF SSGA'S GLOBAL EQUITY
GROUP. SHE MANAGES A VARIETY OF SSGA'S EQUITY AND TAX-FREE FUNDS.
ATLANTA CAPITAL MANAGEMENT COMPANY, L.L.C.; TWO MIDTOWN PLAZA, SUITE 1600, 1349
WEST PEACHTREE STREET, ATLANTA, GA 30309 HAS MANAGED CSIF EQUITY SINCE SEPTEMBER
1998.
DANIEL W. BOONE, III, C.F.A. HEADS THE ATLANTA PORTFOLIO MANAGEMENT TEAM FOR
CSIF EQUITY. HE IS A SENIOR PARTNER AND SENIOR INVESTMENT PROFESSIONAL FOR
ATLANTA CAPITAL. HE HAS BEEN WITH THE FIRM SINCE 1976. HE SPECIALIZES IN EQUITY
PORTFOLIO MANAGEMENT AND RESEARCH. BEFORE JOINING THE FIRM, HE HELD POSITIONS
WITH THE INTERNATIONAL FIRM OF LAZARD, FRERES IN NEW YORK, AND WELLINGTON
MANAGEMENT COMPANY. MR. BOONE HAS EARNED A MBA FROM THE WHARTON SCHOOL OF
UNIVERSITY OF PENNSYLVANIA, WHERE HE GRADUATED WITH DISTINCTION, AND A B.A. FROM
DAVIDSON COLLEGE.
MURRAY JOHNSTONE INTERNATIONAL, LTD.; 875 NORTH MICHIGAN AVE., SUITE 3415,
CHICAGO, IL 60611. THE FIRM HAS MANAGED CALVERT WORLD VALUES INTERNATIONAL
EQUITY FUND SINCE ITS INCEPTION.
ANDREW PRESTON HEADS THE PORTFOLIO MANAGEMENT TEAM FOR INTERNATIONAL EQUITY. HE
JOINED MURRAY JOHNSTONE INTERNATIONAL IN 1985, AND HAS HELD POSITIONS AS
INVESTMENT ANALYST IN THE UNITED KINGDOM AND U.S. DEPARTMENT, AND FUND MANAGER
IN THE JAPANESE DEPARTMENT. HE WAS APPOINTED DIRECTOR OF THE COMPANY IN 1993.
PRIOR TO JOINING MURRAY JOHNSTONE, HE WAS A MEMBER OF THE AUSTRALIAN FOREIGN
SERVICE AND ATTENDED UNIVERSITY IN AUSTRALIA AND JAPAN.
AWAD ASSET MANAGEMENT, INC. (AWAD); 250 PARK AVENUE, NEW YORK, NY 10177, A
SUBSIDIARY OF RAYMOND JAMES & ASSOCIATES, HAS MANAGED THE NEW VISION SMALL CAP
FUND SINCE 1997. THE FIRM SPECIALIZES IN THE MANAGEMENT OF SMALL-CAPITALIZATION
GROWTH STOCKS. THEY EMPHASIZE A GROWTH-AT-A-REASONABLE-PRICE INVESTMENT
PHILOSOPHY.
<PAGE>
JAMES AWAD, PRESIDENT OF AWAD, FOUNDED THE FIRM IN 1992. HE HEADS THE PORTFOLIO
MANAGEMENT TEAM FOR NEW VISION SMALL CAP. MR. AWAD HAS MORE THAN 30 YEARS
EXPERIENCE IN THE INVESTMENT BUSINESS, HOLDING POSITIONS WITH FIRMS SUCH AS
NEUBERGER & BERMAN AND FIRST INVESTORS CORPORATION.
EACH OF THE FUNDS HAS OBTAINED AN EXEMPTIVE ORDER FROM THE SECURITIES AND
EXCHANGE COMMISSION TO PERMIT THE FUND, PURSUANT TO APPROVAL BY THE BOARD OF
TRUSTEES/DIRECTORS, TO ENTER INTO AND MATERIALLY AMEND CONTRACTS WITH THE FUND'S
SUBADVISOR WITHOUT SHAREHOLDER APPROVAL. SEE "INVESTMENT ADVISOR AND SUBADVISOR"
IN THE SAI FOR FURTHER DETAILS.
ADVISORY FEES
THE FOLLOWING TABLE SHOWS THE AGGREGATE ANNUAL ADVISORY FEE PAID TO CAMCO BY
EACH FUND FOR THE MOST RECENT FISCAL YEAR AS A PERCENTAGE OF THAT FUND'S AVERAGE
DAILY NET ASSETS.
FUND ADVISORY FEE
CSIF BALANCED 0.51%
CSIF MANAGED INDEX 0.50%1
CSIF EQUITY 0.51%
CSIF BOND 0.43%
CSIF MONEY MARKET 0.38%
CWVF INTERNATIONAL EQUITY 0.85%
CAPITAL ACCUMULATION 0.70%
NEW VISION SMALL CAP 0.82%
1 CSIF MANAGED INDEX HAS A RECAPTURE PROVISION UNDER WHICH CAMCO MAY ELECT
TO RECAPTURE FROM THE FUND IN A LATER YEAR ANY FEES CAMCO WAIVES OR EXPENSES IT
ASSUMES, SUBJECT TO CERTAIN LIMITATIONS.
A WORD ABOUT THE YEAR 2000 (Y2K) AND OUR COMPUTER SYSTEMS
LIKE WITH OTHER MUTUAL FUNDS, CAMCO AND ITS SERVICE PROVIDERS USE COMPUTER
SYSTEMS FOR ALL ASPECTS OF OUR BUSINESS-PROCESSING SHAREHOLDER AND FUND
TRANSACTIONS, FUND ACCOUNTING, EXECUTING TRADES, AND PRICING SECURITIES JUST TO
NAME A FEW. THE CONCERN HAS BEEN THAT MANY SOFTWARE PROGRAMS CANNOT DISTINGUISH
BETWEEN THE YEAR 2000 AND THE YEAR 1900. THIS COULD CAUSE PROBLEMS WITH
RETIREMENT PLAN DISTRIBUTIONS, DIVIDEND PAYMENT SOFTWARE, TRANSACTION SOFTWARE,
AND NUMEROUS OTHER AREAS THAT IMPACT THE FUND. LEADING UP TO THIS YEAR, CALVERT
GROUP HAS BEEN REVIEWING ALL OF ITS COMPUTER SYSTEMS FOR Y2K COMPLIANCE.
ALTHOUGH, THUS FAR, THERE HAVE BEEN NO PROBLEMS CAUSED BY Y2K THAT COULD IMPACT
THE FUND, THERE CAN BE NO ASSURANCE THAT THERE WILL BE NO FUTURE IMPACT. THE
ADVISOR, THE UNDERWRITER, TRANSFER AGENT AND CUSTODIAN HAVE ADVISED THE FUND
THAT THEY WILL CONTINUE TO ACTIVELY WORK ON ANY NECESSARY CHANGES TO THEIR
COMPUTER SYSTEMS TO ADDRESS ANY ISSUES THAT MAY ARISE THROUGHOUT THE YEAR AND
EXPECT THAT THEIR SYSTEMS, AND THOSE OF THEIR OUTSIDE SERVICE PROVIDERS, WILL BE
ADAPTED ACCORDINGLY. FOR MORE INFORMATION, PLEASE VISIT OUR WEBSITE AT
WWW.CALVERT.COM.
<PAGE>
HOW TO BUY SHARES
GETTING STARTED - BEFORE YOU OPEN AN ACCOUNT
YOU HAVE A FEW DECISIONS TO MAKE BEFORE YOU OPEN AN ACCOUNT IN A MUTUAL FUND.
FIRST, DECIDE WHICH FUND OR FUNDS BEST SUITS YOUR NEEDS AND YOUR GOALS.
SECOND, DECIDE WHAT KIND OF ACCOUNT YOU WANT TO OPEN. CALVERT OFFERS
INDIVIDUAL, JOINT, TRUST, UNIFORM GIFTS/TRANSFERS TO MINOR ACCOUNTS,
TRADITIONAL, EDUCATION AND ROTH IRAS, QUALIFIED PROFIT-SHARING AND MONEY
PURCHASE PLANS, SIMPLE IRAS, SEP-IRAS, 403(B)(7) ACCOUNTS, AND SEVERAL OTHER
TYPES OF ACCOUNTS. MINIMUM INVESTMENTS ARE LOWER FOR THE RETIREMENT PLANS.
THEN DECIDE WHICH CLASS OF SHARES IS BEST FOR YOU. YOU SHOULD MAKE THIS
DECISION CAREFULLY, BASED ON:
- - THE AMOUNT YOU WISH TO INVEST;
- - THE LENGTH OF TIME YOU PLAN TO KEEP THE INVESTMENT; AND
- - THE CLASS EXPENSES.
CHOOSING A SHARE CLASS
CSIF MONEY MARKET OFFERS ONLY ONE CLASS OF SHARES (CLASS O), WHICH IS SOLD
WITHOUT A SALES CHARGE. THE OTHER FUNDS IN THIS PROSPECTUS OFFER THREE DIFFERENT
CLASSES (CLASS A, B, OR C). THIS CHART SHOWS THE DIFFERENCE IN THE CLASSES AND
THE GENERAL TYPES OF INVESTORS WHO MAY BE INTERESTED IN EACH CLASS:
CLASS A: FRONT-END SALES CHARGE
F OR ALL INVESTORS, PARTICULARLY THOSE INVESTING A SUBSTANTIAL AMOUNT WHO PLAN
TO HOLD THE SHARES FOR A LONG PERIOD OF TIME.
SALES CHARGE ON EACH PURCHASE OF 4.75% OR LESS (3.75% OR LESS FOR CSIF BOND),
DEPENDING ON THE AMOUNT YOU INVEST.
CLASS B: DEFERRED SALES CHARGE FOR 6 YEARS (4 YEARS FOR CSIF BOND)
FOR INVESTORS WHO PLAN TO HOLD THE SHARES AT LEAST 6 YEARS (4 FOR CSIF BOND).
THE EXPENSES OF THIS CLASS ARE HIGHER THAN CLASS A, BECAUSE OF THE 12B-1 FEE.
NO SALES CHARGE ON EACH PURCHASE, BUT IF YOU SELL YOUR SHARES WITHIN 6 YEARS,
YOU WILL PAY A DEFERRED SALES CHARGE OF 5% OR LESS ON SHARES YOU SELL (4% OR
LESS ON SHARES OF CSIF BOND YOU SELL WITHIN 4 YEARS OF PURCHASE).
CLASS C: DEFERRED SALES CHARGE FOR 1 YEAR
FOR INVESTORS WHO ARE INVESTING FOR AT LEAST ONE YEAR, BUT LESS THAN SIX YEARS.
THE EXPENSES OF THIS CLASS ARE HIGHER THAN CLASS A, BECAUSE OF THE 12B-1 FEE.
NO SALES CHARGE ON EACH PURCHASE, BUT IF YOU SELL SHARES WITHIN 1 YEAR, THEN YOU
WILL PAY A DEFERRED SALES
CHARGE OF 1% AT THAT TIME.
<PAGE>
CLASS A: FRONT-END SALES CHARGE
CLASS A SHARES HAVE ANNUAL 12B-1 FEE OF UP TO 0.35%.
CLASS A SHARES HAVE LOWER ANNUAL EXPENSES DUE TO A LOWER 12B-1 FEE.
PURCHASES OF CLASS A SHARES AT NAV FOR ACCOUNTS WITH $1,000,000 OR MORE WILL BE
SUBJECT TO A 1.0% DEFERRED SALES CHARGE FOR 1 YEAR.
CLASS B: DEFERRED SALES CHARGE FOR 6 YEARS (4 YEARS FOR CSIF BOND)
CLASS B SHARES HAVE AN ANNUAL 12B-1 FEE OF 1.00%.
YOUR SHARES WILL AUTOMATICALLY CONVERT TO CLASS A SHARES AFTER 8 YEARS (6 YEARS
FOR CSIF BOND), REDUCING YOUR FUTURE ANNUAL EXPENSES.
IF YOU ARE INVESTING MORE THAN $250,000, YOU SHOULD CONSIDER INVESTING IN CLASS
A OR C.
CLASS C: DEFERRED SALES CHARGE FOR 1 YEAR
CLASS C SHARES HAVE AN ANNUAL 12B-1 FEE OF 1.00%.
CLASS C SHARES HAVE HIGHER ANNUAL EXPENSES THAN CLASS A AND THERE IS NO
AUTOMATIC CONVERSION TO CLASS A.
IF YOU ARE INVESTING MORE THAN $1,000,000, YOU SHOULD INVEST IN CLASS A.
CLASS A
IF YOU CHOOSE CLASS A, YOU WILL PAY A SALES CHARGE AT THE TIME OF EACH PURCHASE.
THIS TABLE SHOWS THE CHARGES BOTH AS A PERCENTAGE OF OFFERING PRICE AND AS A
PERCENTAGE OF THE AMOUNT YOU INVEST. THE TERM "OFFERING PRICE" INCLUDES THE
FRONT-END SALES CHARGE. IF YOU INVEST MORE, THE SALES CHARGE WILL BE LOWER. FOR
EXAMPLE, IF YOU INVEST MORE THAN $50,000, OR IF YOUR CUMULATIVE PURCHASES OR THE
VALUE IN YOUR ACCOUNT IS MORE THAN $50,000,4 THEN THE SALES CHARGE IS REDUCED TO
3.75%.
[INSERT HEADINGS]
YOUR INVESTMENT IN SALES CHARGE % % OF AMT. SALES CHARGE % % OF AMT
CLASS A SHARES OF OFFERING PRICE INVESTED OF OFFERING PRICE INVESTED
LESS THAN $50,000 4.75% 4.99% 3.75% 3.90%
$50,000 BUT LESS THAN $100,000 3.75% 3.90% 3.00% 3.09%
$100,000 BUT LESS THAN $250,000 2.75% 2.83% 2.25% 2.30%
$250,000 BUT LESS THAN $500,000 1.75% 1.78% 1.75% 1.78%
$500,000 BUT LESS THAN $1,000,000 1.00% 1.01% 1.00% 1.01%
$1,000,000 AND OVER NONE5 NONE5 NONE5 NONE5
4 THIS IS CALLED "RIGHTS OF ACCUMULATION." THE SALES CHARGE IS CALCULATED BY
TAKING INTO ACCOUNT NOT ONLY THE DOLLAR AMOUNT OF THE NEW PURCHASE OF SHARES,
BUT ALSO THE HIGHER OF COST OR CURRENT VALUE OF SHARES YOU HAVE PREVIOUSLY
PURCHASED IN CALVERT GROUP FUNDS THAT IMPOSE SALES CHARGES. THIS AUTOMATICALLY
APPLIES TO YOUR ACCOUNT FOR EACH NEW PURCHASE OF CLASS A SHARES.
5 PURCHASES OF CLASS A SHARES AT NAV FOR ACCOUNTS WITH $1,000,000 OR MORE
ARE SUBJECT TO A ONE YEAR CDSC OF 1.00%. SEE THE "CALCULATION OF CONTINGENT
DEFERRED SALES CHARGE AND WAIVER OF SALES CHARGES."
<PAGE>
THE CLASS A FRONT-END SALES CHARGE MAY BE WAIVED FOR CERTAIN PURCHASES OR
INVESTORS, SUCH AS PARTICIPANTS IN CERTAIN GROUP RETIREMENT PLANS OR OTHER
QUALIFIED GROUPS AND CLIENTS OF REGISTERED INVESTMENT ADVISERS. FOR DETAILS ON
THESE AND OTHER PURCHASES THAT MAY QUALIFY FOR A REDUCED SALES CHARGE, SEE
EXHIBIT A.
CLASS B
IF YOU CHOOSE CLASS B, THERE IS NO FRONT-END SALES CHARGE LIKE CLASS A, BUT IF
YOU SELL THE SHARES WITHIN THE FIRST 6 YEARS (OR 4 YEARS FOR CSIF BOND), YOU
WILL HAVE TO PAY A "CONTINGENT DEFERRED" SALES CHARGE ("CDSC"). THIS MEANS THAT
YOU DO NOT HAVE TO PAY THE SALES CHARGE UNLESS YOU SELL YOUR SHARES WITHIN THE
FIRST 6 YEARS AFTER PURCHASE (OR 4 YEARS FOR CSIF BOND). KEEP IN MIND THAT THE
LONGER YOU HOLD THE SHARES, THE LESS YOU WILL HAVE TO PAY IN DEFERRED SALES
CHARGES.
[INSERT HEADINGS]
TIME SINCE PURCHASE CDSC % CDSC %
1ST YEAR 5% 4%
2ND YEAR 4% 3%
3RD YEAR 4% 2%
4TH YEAR 3% 1%
5TH YEAR 2% NONE
6TH YEAR 1% NONE
AFTER 6 YEARS NONE NONE
CALCULATION OF CONTINGENT DEFERRED SALES CHARGE
AND WAIVER OF SALES CHARGES
THE CDSC WILL NOT BE CHARGED ON SHARES YOU RECEIVED AS DIVIDENDS OR FROM CAPITAL
GAINS DISTRIBUTIONS OR ON ANY CAPITAL APPRECIATION (GAIN IN THE VALUE) OF SHARES
THAT ARE SOLD.
SHARES THAT ARE NOT SUBJECT TO THE CDSC WILL BE REDEEMED FIRST, FOLLOWED BY
SHARES YOU HAVE HELD THE LONGEST. THE CDSC IS CALCULATED BY DETERMINING THE
SHARE VALUE AT BOTH THE TIME OF PURCHASE AND REDEMPTION AND THEN MULTIPLYING
WHICHEVER VALUE IS LESS BY THE PERCENTAGE THAT APPLIES AS SHOWN ABOVE. FOR
EXAMPLE, IF YOU INVESTED $5,000 IN CSIF EQUITY CLASS B SHARES THREE YEARS AGO,
AND IT IS NOW WORTH $5,750, THE CDSC WILL BE CALCULATED BY TAKING THE LESSER OF
THE TWO VALUES ($5,000), AND MULTIPLYING IT BY 4%, FOR A CDSC OF $200. IF YOU
CHOOSE TO SELL ONLY PART OF YOUR SHARES, THE CAPITAL APPRECIATION FOR THOSE
SHARES ONLY IS INCLUDED IN THE CALCULATION, RATHER THAN THE CAPITAL APPRECIATION
FOR THE ENTIRE ACCOUNT.
<PAGE>
THE CDSC ON CLASS B SHARES WILL BE WAIVED IN THE FOLLOWING CIRCUMSTANCES:
- - REDEMPTION UPON THE DEATH OR DISABILITY OF THE SHAREHOLDER, PLAN
PARTICIPANT, OR BENEFICIARY.6
- - MINIMUM REQUIRED DISTRIBUTIONS FROM RETIREMENT PLAN ACCOUNTS FOR
SHAREHOLDERS 701/2 AND OLDER.7
- - THE RETURN OF AN EXCESS CONTRIBUTION OR DEFERRAL AMOUNTS, PURSUANT TO
SECTIONS 408(D)(4) OR (5), 401(K)(8), 402(G)(2), OR 401(M)(6) OF THE INTERNAL
REVENUE CODE.
- - INVOLUNTARY REDEMPTIONS OF ACCOUNTS UNDER PROCEDURES SET FORTH BY THE
FUND'S BOARD OF TRUSTEES/DIRECTORS.
- - A SINGLE ANNUAL WITHDRAWAL UNDER A SYSTEMATIC WITHDRAWAL PLAN OF UP TO 10%
PER YEAR OF THE SHAREHOLDER'S ACCOUNT BALANCE.8
CLASS C
IF YOU CHOOSE CLASS C, THERE IS NO FRONT-END SALES CHARGE LIKE CLASS A, BUT IF
YOU SELL THE SHARES WITHIN THE FIRST YEAR, YOU WILL HAVE TO PAY A 1% CDSC. CLASS
C MAY BE A GOOD CHOICE FOR YOU IF YOU PLAN TO BUY SHARES AND HOLD THEM FOR AT
LEAST 1 YEAR, BUT NOT MORE THAN FIVE OR SIX YEARS.
DISTRIBUTION AND SERVICE FEES
EACH FUND HAS ADOPTED A PLAN UNDER RULE 12B-1 OF THE INVESTMENT COMPANY ACT OF
1940 THAT ALLOWS THE FUND TO PAY DISTRIBUTION FEES FOR THE SALE AND DISTRIBUTION
OF ITS SHARES. THE DISTRIBUTION PLAN ALSO PAYS SERVICE FEES TO PERSONS (SUCH AS
YOUR FINANCIAL PROFESSIONAL) FOR SERVICES PROVIDED TO SHAREHOLDERS. BECAUSE
THESE FEES ARE PAID OUT OF A FUND'S ASSETS ON AN ONGOING BASIS, OVER TIME, THESE
FEES WILL INCREASE THE COST OF YOUR INVESTMENT AND MAY COST YOU MORE THAN PAYING
OTHER TYPES OF SALES CHARGES. PLEASE SEE EXHIBIT B FOR MORE SERVICE FEE
INFORMATION.
6 "DISABILITY" MEANS A TOTAL DISABILITY AS EVIDENCED BY A DETERMINATION BY
THE FEDERAL SOCIAL SECURITY ADMINISTRATION.
7 THE MAXIMUM AMOUNT SUBJECT TO THIS WAIVER IS BASED ONLY UPON THE
SHAREHOLDER'S CALVERT GROUP RETIREMENT ACCOUNTS.
8 THIS SYSTEMATIC WITHDRAW PLAN REQUIRES A MINIMUM ACCOUNT BALANCE OF
$50,000 TO BE ESTABLISHED.
<PAGE>
THE TABLE BELOW SHOWS THE MAXIMUM ANNUAL PERCENTAGE PAYABLE UNDER THE
DISTRIBUTION PLAN, AND THE AMOUNT ACTUALLY PAID BY EACH FUND FOR THE MOST RECENT
FISCAL YEAR. THE FEES ARE BASED ON AVERAGE DAILY NET ASSETS BY PARTICULAR CLASS.
MAXIMUM PAYABLE UNDER PLAN/AMOUNT ACTUALLY PAID
CSIF MONEY MARKET 0.25%/0.00%
CLASS A CLASS B CLASS C
CSIF BALANCED 0.35%/0.24% 1.00%/1.00% 1.00%/1.00%
CSIF BOND 0.35%/0.20% 1.00%/1.00% 1.00%/1.00%
CSIF EQUITY 0.35%/0.23% 1.00%/1.00% 1.00%/1.00%
CSIF MANAGED INDEX 0.25%/0.25% 1.00%/1.00% 1.00%/1.00%
CWVF INTERNATIONAL EQUITY 0.35%/0.25% 1.00%/1.00% 1.00%/1.00%
CAPITAL ACCUMULATION 0.35%/0.35% 1.00%/1.00% 1.00%/1.00%
NEW VISION SMALL CAP 0.25%/0.25% 1.00%/1.00% 1.00%/1.00%
NEXT STEP - ACCOUNT APPLICATION
COMPLETE AND SIGN AN APPLICATION FOR EACH NEW ACCOUNT. WHEN MULTIPLE CLASSES OF
SHARES ARE OFFERED, PLEASE SPECIFY WHICH CLASS YOU WISH TO PURCHASE. FOR MORE
INFORMATION, CONTACT YOUR FINANCIAL PROFESSIONAL OR OUR SHAREHOLDER SERVICES
DEPARTMENT AT 800-368-2748.
MINIMUM TO OPEN AN ACCOUNT MINIMUM ADDITIONAL INVESTMENTS-
$250
CSIF MONEY MARKET $1,000
CSIF BALANCED $1,000
CSIF BOND $1,000
CSIF EQUITY $1,000
CSIF MANAGED INDEX $5,000
CWVF INTERNATIONAL EQUITY $2,000
CAPITAL ACCUMULATION $2,000
NEW VISION SMALL CAP $2,000
<PAGE>
PLEASE MAKE YOUR CHECK PAYABLE
TO THE FUND AND MAIL IT TO:
NEW ACCOUNTS SUBSEQUENT INVESTMENTS
(INCLUDE APPLICATION): (INCLUDE INVESTMENT SLIP):
CALVERT GROUP CALVERT GROUP
P.O. BOX 219544 P.O. BOX 219739
KANSAS CITY, MO 64121-9544 KANSAS CITY, MO 64121-9739
BY REGISTERED, CALVERT GROUP
CERTIFIED, OR C/O NFDS
OVERNIGHT MAIL 330 WEST 9TH STREET
KANSAS CITY, MO 64105-1807
AT THE CALVERT OFFICE VISIT THE CALVERT OFFICE TO MAKE INVESTMENTS BY CHECK.
SEE THE BACK COVER PAGE FOR THE ADDRESS.
IMPORTANT - HOW SHARES ARE PRICED
THE PRICE OF SHARES IS BASED ON EACH FUND'S NET ASSET VALUE ("NAV"). NAV IS
COMPUTED BY ADDING THE VALUE OF A FUND'S HOLDINGS PLUS OTHER ASSETS, SUBTRACTING
LIABILITIES, AND THEN DIVIDING THE RESULT BY THE NUMBER OF SHARES OUTSTANDING.
IF A FUND HAS MORE THAN ONE CLASS OF SHARES, THE NAV OF EACH CLASS WILL BE
DIFFERENT, DEPENDING ON THE NUMBER OF SHARES OUTSTANDING FOR EACH CLASS.
PORTFOLIO SECURITIES AND OTHER ASSETS ARE VALUED BASED ON MARKET QUOTATIONS,
EXCEPT THAT SECURITIES MATURING WITHIN 60 DAYS ARE VALUED AT AMORTIZED COST.
CSIF MONEY MARKET IS VALUED ACCORDING TO THE "AMORTIZED COST" METHOD, WHICH IS
INTENDED TO STABILIZE THE NAV AT $1 PER SHARE. IF MARKET QUOTATIONS ARE NOT
READILY AVAILABLE, SECURITIES ARE VALUED BY A METHOD THAT THE FUND'S BOARD OF
TRUSTEES/DIRECTORS BELIEVES ACCURATELY REFLECTS FAIR VALUE.
THE NAV IS CALCULATED AS OF THE CLOSE OF EACH BUSINESS DAY, WHICH COINCIDES WITH
THE CLOSING OF THE REGULAR SESSION OF THE NEW YORK STOCK EXCHANGE ("NYSE")
(NORMALLY 4 P.M. ET). EACH FUND IS OPEN FOR BUSINESS EACH DAY THE NYSE IS OPEN.
SOME FUNDS HOLD SECURITIES THAT ARE PRIMARILY LISTED ON FOREIGN EXCHANGES THAT
TRADE ON DAYS WHEN THE NYSE IS CLOSED. THESE FUNDS DO NOT PRICE SHARES ON DAYS
WHEN THE NYSE IS CLOSED, EVEN IF FOREIGN MARKETS MAY BE OPEN. AS A RESULT, THE
VALUE OF THE FUND'S SHARES MAY CHANGE ON DAYS WHEN YOU WILL NOT BE ABLE TO BUY
OR SELL YOUR SHARES.
WHEN YOUR ACCOUNT WILL BE CREDITED
YOUR PURCHASE WILL BE PROCESSED AT THE NEXT NAV CALCULATED AFTER YOUR ORDER IS
RECEIVED AND IN GOOD ORDER. ALL OF YOUR PURCHASES MUST BE MADE IN US DOLLARS.
<PAGE>
NO CASH OR THIRD PARTY CHECKS WILL BE ACCEPTED. NO CREDIT CARD OR CREDIT LOAN
CHECKS WILL BE ACCEPTED. EACH FUND RESERVES THE RIGHT TO SUSPEND THE OFFERING
OF SHARES FOR A PERIOD OF TIME OR TO REJECT ANY SPECIFIC PURCHASE ORDER. AS A
CONVENIENCE, CHECK PURCHASES RECEIVED AT CALVERT'S OFFICE IN BETHESDA, MARYLAND
WILL BE SENT BY OVERNIGHT DELIVERY TO THE TRANSFER AGENT AND WILL BE CREDITED
THE NEXT BUSINESS DAY UPON RECEIPT. ANY CHECK PURCHASE RECEIVED WITHOUT AN
INVESTMENT SLIP MAY CAUSE DELAYED CREDITING. ANY PURCHASE LESS THAN THE $250
MINIMUM FOR SUBSEQUENT INVESTMENTS WILL BE CHARGED A SERVICE FEE OF $3. IF YOUR
CHECK DOES NOT CLEAR YOUR BANK, YOUR PURCHASE WILL BE CANCELED AND YOU WILL BE
CHARGED A $25 FEE PLUS ANY COSTS INCURRED. ALL PURCHASES WILL BE CONFIRMED AND
CREDITED TO YOUR ACCOUNT IN FULL AND FRACTIONAL SHARES (ROUNDED TO THE NEAREST
1/1000TH OF A SHARE).
CSIF MONEY MARKET
YOUR PURCHASE WILL BE CREDITED AT THE NET ASSET VALUE CALCULATED AFTER YOUR
ORDER IS RECEIVED AND ACCEPTED. IF THE TRANSFER AGENT RECEIVES YOUR WIRE
PURCHASE BY 5 P.M. ET, YOUR ACCOUNT WILL BEGIN EARNING DIVIDENDS ON THE NEXT
BUSINESS DAY. EXCHANGES BEGIN EARNING DIVIDENDS THE NEXT BUSINESS DAY AFTER THE
EXCHANGE REQUEST IS RECEIVED BY MAIL OR TELEPHONE. PURCHASES RECEIVED BY CHECK
WILL BEGIN EARNING DIVIDENDS THE NEXT BUSINESS DAY AFTER THEY ARE CREDITED TO
THE ACCOUNT.
OTHER CALVERT GROUP FEATURES
CALVERT INFORMATION NETWORK
FOR 24 HOUR PERFORMANCE AND ACCOUNT INFORMATION CALL 800-368-2745
OR VISIT WWW.CALVERT.COM
YOU CAN OBTAIN CURRENT PERFORMANCE AND PRICING INFORMATION, VERIFY ACCOUNT
BALANCES, AND AUTHORIZE CERTAIN TRANSACTIONS WITH THE CONVENIENCE OF ONE PHONE
CALL, 24 HOURS A DAY.
ACCOUNT SERVICES
BY SIGNING UP FOR SERVICES WHEN YOU OPEN YOUR ACCOUNT, YOU AVOID HAVING TO
OBTAIN A SIGNATURE GUARANTEE. IF YOU WISH TO ADD SERVICES AT A LATER DATE, A
SIGNATURE GUARANTEE TO VERIFY YOUR SIGNATURE MAY BE OBTAINED FROM ANY BANK,
TRUST COMPANY AND SAVINGS AND LOAN ASSOCIATION, CREDIT UNION, BROKER-DEALER FIRM
OR MEMBER OF A DOMESTIC STOCK EXCHANGE. A NOTARY PUBLIC CANNOT PROVIDE A
SIGNATURE GUARANTEE.
CALVERT MONEY CONTROLLER
CALVERT MONEY CONTROLLER ALLOWS YOU TO PURCHASE OR SELL SHARES BY ELECTRONIC
FUNDS TRANSFER WITHOUT THE TIME DELAY OF MAILING A CHECK OR THE ADDED EXPENSE OF
A WIRE. USE THIS SERVICE TO TRANSFER UP TO $300,000 ELECTRONICALLY. ALLOW ONE OR
TWO BUSINESS DAYS AFTER YOU PLACE YOUR REQUEST FOR THE TRANSFER TO TAKE PLACE.
MONEY TRANSFERRED TO PURCHASE NEW SHARES WILL BE SUBJECT TO A HOLD OF UP TO 10
<PAGE>
BUSINESS DAYS BEFORE REDEMPTION REQUESTS ARE HONORED. TRANSACTION REQUESTS MUST
BE RECEIVED BY 4 P.M. ET. YOU MAY REQUEST THIS SERVICE ON YOUR INITIAL ACCOUNT
APPLICATION. CALVERT MONEY CONTROLLER TRANSACTIONS RETURNED FOR INSUFFICIENT
FUNDS WILL INCUR A $25 CHARGE.
TELEPHONE TRANSACTIONS
YOU MAY PURCHASE, REDEEM, OR EXCHANGE SHARES, WIRE FUNDS AND USE CALVERT MONEY
CONTROLLER BY TELEPHONE IF YOU HAVE PRE-AUTHORIZED SERVICE INSTRUCTIONS. YOU
RECEIVE TELEPHONE PRIVILEGES AUTOMATICALLY WHEN YOU OPEN YOUR ACCOUNT UNLESS YOU
ELECT OTHERWISE. FOR OUR MUTUAL PROTECTION, THE FUND, THE SHAREHOLDER SERVICING
AGENT AND THEIR AFFILIATES USE PRECAUTIONS SUCH AS VERIFYING SHAREHOLDER
IDENTITY AND RECORDING TELEPHONE CALLS TO CONFIRM INSTRUCTIONS GIVEN BY PHONE. A
CONFIRMATION STATEMENT IS SENT FOR MOST TRANSACTIONS; PLEASE REVIEW THIS
STATEMENT AND VERIFY THE ACCURACY OF YOUR TRANSACTION IMMEDIATELY.
EXCHANGES
CALVERT GROUP OFFERS A WIDE VARIETY OF INVESTMENT OPTIONS THAT INCLUDES COMMON
STOCK FUNDS, TAX-EXEMPT AND CORPORATE BOND FUNDS, AND MONEY MARKET FUNDS (CALL
YOUR BROKER OR CALVERT REPRESENTATIVE FOR MORE INFORMATION). WE MAKE IT EASY FOR
YOU TO PURCHASE SHARES IN OTHER CALVERT FUNDS IF YOUR INVESTMENT GOALS CHANGE.
THE EXCHANGE PRIVILEGE OFFERS FLEXIBILITY BY ALLOWING YOU TO EXCHANGE SHARES ON
WHICH YOU HAVE ALREADY PAID A SALES CHARGE FROM ONE MUTUAL FUND TO ANOTHER AT NO
ADDITIONAL CHARGE.
COMPLETE AND SIGN AN ACCOUNT APPLICATION, TAKING CARE TO REGISTER YOUR NEW
ACCOUNT IN THE SAME NAME AND TAXPAYER IDENTIFICATION NUMBER AS YOUR EXISTING
CALVERT ACCOUNT(S). EXCHANGE INSTRUCTIONS MAY THEN BE GIVEN BY TELEPHONE IF
TELEPHONE REDEMPTIONS HAVE BEEN AUTHORIZED AND THE SHARES ARE NOT IN CERTIFICATE
FORM.
BEFORE YOU MAKE AN EXCHANGE, PLEASE NOTE THE FOLLOWING:
EACH EXCHANGE REPRESENTS THE SALE OF SHARES OF ONE FUND AND THE PURCHASE OF
SHARES OF ANOTHER. THEREFORE, YOU COULD REALIZE A TAXABLE GAIN OR LOSS.
YOU MAY EXCHANGE SHARES ACQUIRED BY REINVESTMENT OF DIVIDENDS OR DISTRIBUTIONS
INTO ANOTHER CALVERT FUND AT NO ADDITIONAL CHARGE.
SHARES MAY ONLY BE EXCHANGED FOR SHARES OF THE SAME CLASS OF ANOTHER CALVERT
FUND.
NO CDSC IS IMPOSED ON EXCHANGES OF SHARES SUBJECT TO A CDSC AT THE TIME OF THE
EXCHANGE. THE APPLICABLE CDSC IS IMPOSED AT THE TIME THE SHARES ACQUIRED BY THE
EXCHANGE ARE REDEEMED.
<PAGE>
EXCHANGE REQUESTS WILL NOT BE ACCEPTED ON ANY DAY WHEN CALVERT IS OPEN BUT THE
FUND'S CUSTODIAN BANK IS CLOSED (E.G., COLUMBUS DAY AND VETERAN'S DAY); THESE
EXCHANGE REQUESTS WILL BE PROCESSED THE NEXT DAY THE FUND'S CUSTODIAN BANK IS
OPEN.
EACH FUND AND THE DISTRIBUTOR RESERVE THE RIGHT AT ANY TIME TO REJECT OR CANCEL
ANY PART OF ANY PURCHASE OR EXCHANGE ORDER; MODIFY ANY TERMS OR CONDITIONS OF
PURCHASE OF SHARES OF ANY FUND; OR WITHDRAW ALL OR ANY PART OF THE OFFERING MADE
BY THIS PROSPECTUS. TO PROTECT THE INTERESTS OF INVESTORS, EACH FUND AND THE
DISTRIBUTOR MAY REJECT ANY ORDER CONSIDERED MARKET-TIMING ACTIVITY.
EACH FUND RESERVES THE RIGHT TO TERMINATE OR MODIFY THE EXCHANGE PRIVILEGE WITH
60 DAYS' WRITTEN NOTICE.
ELECTRONIC DELIVERY OF PROSPECTUSES AND SHAREHOLDER REPORTS
YOU MAY REQUEST TO RECEIVE ELECTRONIC DELIVERY OF PROSPECTUSES AND ANNUAL AND
SEMI ANNUAL REPORTS.
COMBINED GENERAL MAILINGS (HOUSEHOLDING)
MULTIPLE ACCOUNTS WITH THE SAME SOCIAL SECURITY NUMBER WILL RECEIVE ONE MAILING
PER HOUSEHOLD OF INFORMATION SUCH AS PROSPECTUSES AND SEMI-ANNUAL AND ANNUAL
REPORTS. YOU MAY REQUEST FURTHER GROUPING OF ACCOUNTS TO RECEIVE FEWER MAILINGS.
SEPARATE STATEMENTS WILL BE GENERATED FOR EACH SEPARATE ACCOUNT AND WILL BE
MAILED IN ONE ENVELOPE FOR EACH COMBINATION ABOVE.
SPECIAL SERVICES AND CHARGES
EACH FUND PAYS FOR SHAREHOLDER SERVICES BUT NOT FOR SPECIAL SERVICES THAT ARE
REQUIRED BY A FEW SHAREHOLDERS, SUCH AS A REQUEST FOR A HISTORICAL TRANSCRIPT OF
AN ACCOUNT OR A STOP PAYMENT ON A DRAFT. YOU MAY BE REQUIRED TO PAY A FEE FOR
THESE SPECIAL SERVICES; FOR EXAMPLE, THE FEE FOR STOP PAYMENTS IS $25. CSIF
MONEY MARKET WILL CHARGE A SERVICE FEE OF $25 FOR DRAFTS RETURNED FOR
INSUFFICIENT OR UNCOLLECTED FUNDS.
IF YOU ARE PURCHASING SHARES THROUGH A PROGRAM OF SERVICES OFFERED BY A
BROKER/DEALER OR FINANCIAL INSTITUTION, YOU SHOULD READ THE PROGRAM MATERIALS
TOGETHER WITH THIS PROSPECTUS. CERTAIN FEATURES MAY BE MODIFIED IN THESE
PROGRAMS. INVESTORS MAY BE CHARGED A FEE IF THEY EFFECT TRANSACTIONS IN FUND
SHARES THROUGH A BROKER OR AGENT.
MINIMUM ACCOUNT BALANCE
PLEASE MAINTAIN A BALANCE IN EACH OF YOUR FUND ACCOUNTS OF AT LEAST $1,000 PER
CLASS ($5,000 FOR THE CSIF MANAGED INDEX). IF THE BALANCE IN YOUR ACCOUNT FALLS
BELOW THE MINIMUM DURING A MONTH, A FEE MAY BE CHARGED TO YOUR ACCOUNT (CSIF
MONEY MARKET, $3/MONTH; CSIF MANAGED INDEX, $1/MONTH).
IF THE BALANCE IN YOUR ACCOUNT FALLS BELOW THE MINIMUM DURING A MONTH, THE
<PAGE>
ACCOUNT MAY BE CLOSED AND THE PROCEEDS MAILED TO THE ADDRESS OF RECORD. YOU
WILL RECEIVE NOTICE THAT YOUR ACCOUNT IS BELOW THE MINIMUM, AND WILL BE CLOSED
IF THE BALANCE IS NOT BROUGHT UP TO THE REQUIRED MINIMUM WITHIN 30 DAYS.
DIVIDENDS, CAPITAL GAINS, AND TAXES
EACH FUND PAYS DIVIDENDS FROM ITS NET INVESTMENT INCOME AS SHOWN BELOW. NET
INVESTMENT INCOME CONSISTS OF INTEREST INCOME, NET SHORT-TERM CAPITAL GAINS, IF
ANY, AND DIVIDENDS DECLARED AND PAID ON INVESTMENTS, LESS EXPENSES.
DISTRIBUTIONS OF NET SHORT-TERM CAPITAL GAINS (TREATED AS DIVIDENDS FOR TAX
PURPOSES) AND NET LONG-TERM CAPITAL GAINS, IF ANY, ARE NORMALLY PAID ONCE A
YEAR; HOWEVER, THE FUNDS DO NOT ANTICIPATE MAKING ANY SUCH DISTRIBUTIONS UNLESS
AVAILABLE CAPITAL LOSS CARRYOVERS HAVE BEEN USED OR HAVE EXPIRED. DIVIDEND AND
DISTRIBUTION PAYMENTS WILL VARY BETWEEN CLASSES.
CSIF MONEY MARKET ACCRUED DAILY, PAID MONTHLY
CSIF BOND PAID MONTHLY
CSIF BALANCED PAID QUARTERLY
CSIF EQUITY PAID ANNUALLY
CSIF MANAGED INDEX PAID ANNUALLY
CWVF INTERNATIONAL EQUITY PAID ANNUALLY
CAPITAL ACCUMULATION PAID ANNUALLY
NEW VISION SMALL CAP PAID ANNUALLY
DIVIDEND PAYMENT OPTIONS
DIVIDENDS AND ANY DISTRIBUTIONS ARE AUTOMATICALLY REINVESTED IN THE SAME FUND AT
NAV (WITHOUT SALES CHARGE), UNLESS YOU ELECT TO HAVE AMOUNTS OF $10 OR MORE PAID
IN CASH (BY CHECK OR BY CALVERT MONEY CONTROLLER). DIVIDENDS AND DISTRIBUTIONS
FROM ANY CALVERT GROUP FUND MAY BE AUTOMATICALLY INVESTED IN AN IDENTICALLY
REGISTERED ACCOUNT IN ANY OTHER CALVERT GROUP FUND AT NAV. IF REINVESTED IN THE
SAME ACCOUNT, NEW SHARES WILL BE PURCHASED AT NAV ON THE REINVESTMENT DATE,
WHICH IS GENERALLY 1 TO 3 DAYS PRIOR TO THE PAYMENT DATE. YOU MUST NOTIFY THE
FUNDS IN WRITING TO CHANGE YOUR PAYMENT OPTIONS. IF YOU ELECT TO HAVE DIVIDENDS
AND/OR DISTRIBUTIONS PAID IN CASH, AND THE US POSTAL SERVICE RETURNS THE CHECK
AS UNDELIVERABLE, IT, AS WELL AS FUTURE DIVIDENDS AND DISTRIBUTIONS, WILL BE
REINVESTED IN ADDITIONAL SHARES. NO DIVIDENDS WILL ACCRUE ON AMOUNTS REPRESENTED
BY UNCASHED DISTRIBUTION OR REDEMPTION CHECKS.
BUYING A DIVIDEND (NOT APPLICABLE TO MONEY MARKET FUNDS)
AT THE TIME OF PURCHASE, THE SHARE PRICE OF EACH CLASS MAY REFLECT UNDISTRIBUTED
INCOME, CAPITAL GAINS OR UNREALIZED APPRECIATION OF SECURITIES. ANY INCOME OR
CAPITAL GAINS FROM THESE AMOUNTS WHICH ARE LATER DISTRIBUTED TO YOU ARE FULLY
TAXABLE. ON THE RECORD DATE FOR A DISTRIBUTION, SHARE VALUE IS REDUCED BY THE
AMOUNT OF THE DISTRIBUTION. IF YOU BUY SHARES JUST BEFORE THE RECORD DATE
("BUYING A DIVIDEND") YOU WILL PAY THE FULL PRICE FOR THE SHARES AND THEN
RECEIVE A PORTION OF THE PRICE BACK AS A TAXABLE DISTRIBUTION.
<PAGE>
FEDERAL TAXES
IN JANUARY, EACH FUND WILL MAIL YOU FORM 1099-DIV INDICATING THE FEDERAL TAX
STATUS OF DIVIDENDS AND ANY CAPITAL GAIN DISTRIBUTIONS PAID TO YOU DURING THE
PAST YEAR. GENERALLY, DIVIDENDS AND DISTRIBUTIONS ARE TAXABLE IN THE YEAR THEY
ARE PAID. HOWEVER, ANY DIVIDENDS AND DISTRIBUTIONS PAID IN JANUARY BUT DECLARED
DURING THE PRIOR THREE MONTHS ARE TAXABLE IN THE YEAR DECLARED. DIVIDENDS AND
DISTRIBUTIONS ARE TAXABLE TO YOU REGARDLESS OF WHETHER THEY ARE TAKEN IN CASH OR
REINVESTED. DIVIDENDS, INCLUDING SHORT-TERM CAPITAL GAINS, ARE TAXABLE AS
ORDINARY INCOME. DISTRIBUTIONS FROM LONG-TERM CAPITAL GAINS ARE TAXABLE AS
LONG-TERM CAPITAL GAINS, REGARDLESS OF HOW LONG YOU HAVE OWNED SHARES.
FOR NON-MONEY MARKET FUNDS
YOU MAY REALIZE A CAPITAL GAIN OR LOSS WHEN YOU SELL OR EXCHANGE SHARES. THIS
CAPITAL GAIN OR LOSS WILL BE SHORT- OR LONG-TERM, DEPENDING ON HOW LONG YOU HAVE
OWNED THE SHARES WHICH WERE SOLD. IN JANUARY, THESE FUNDS WILL MAIL YOU FORM
1099-B INDICATING THE TOTAL AMOUNT OF ALL SALES, INCLUDING EXCHANGES. YOU SHOULD
KEEP YOUR ANNUAL YEAR-END ACCOUNT STATEMENTS TO DETERMINE THE COST (BASIS) OF
THE SHARES TO REPORT ON YOUR TAX RETURNS.
OTHER TAX INFORMATION
IN ADDITION TO FEDERAL TAXES, YOU MAY BE SUBJECT TO STATE OR LOCAL TAXES ON YOUR
INVESTMENT, DEPENDING ON THE LAWS IN YOUR AREA. YOU WILL BE NOTIFIED TO THE
EXTENT, IF ANY, THAT DIVIDENDS REFLECT INTEREST RECEIVED FROM US GOVERNMENT
SECURITIES. SUCH DIVIDENDS MAY BE EXEMPT FROM CERTAIN STATE INCOME TAXES.
TAXPAYER IDENTIFICATION NUMBER
IF WE DO NOT HAVE YOUR CORRECT SOCIAL SECURITY OR TAXPAYER IDENTIFICATION NUMBER
("TIN") AND A SIGNED CERTIFIED APPLICATION OR FORM W-9, FEDERAL LAW REQUIRES US
TO WITHHOLD 31% OF YOUR REPORTABLE DIVIDENDS, AND POSSIBLY 31% OF CERTAIN
REDEMPTIONS. IN ADDITION, YOU MAY BE SUBJECT TO A FINE BY THE INTERNAL REVENUE
SERVICE. YOU WILL ALSO BE PROHIBITED FROM OPENING ANOTHER ACCOUNT BY EXCHANGE.
IF THIS TIN INFORMATION IS NOT RECEIVED WITHIN 60 DAYS AFTER YOUR ACCOUNT IS
ESTABLISHED, YOUR ACCOUNT MAY BE REDEEMED (CLOSED) AT THE CURRENT NAV ON THE
DATE OF REDEMPTION. CALVERT GROUP RESERVES THE RIGHT TO REJECT ANY NEW ACCOUNT
OR ANY PURCHASE ORDER FOR FAILURE TO SUPPLY A CERTIFIED TIN.
HOW TO SELL SHARES
YOU MAY REDEEM ALL OR A PORTION OF YOUR SHARES ON ANY DAY YOUR FUND IS OPEN FOR
BUSINESS, PROVIDED THE AMOUNT REQUESTED IS NOT ON HOLD. WHEN YOU PURCHASE BY
CHECK OR WITH CALVERT MONEY CONTROLLER (ELECTRONIC FUNDS TRANSFER), THE PURCHASE
WILL BE ON HOLD FOR UP TO 10 BUSINESS DAYS FROM THE DATE OF RECEIPT. DURING THE
HOLD PERIOD, REDEMPTIONS PROCEEDS WILL NOT BE SENT UNTIL THE TRANSFER
<PAGE>
AGENT IS REASONABLY SATISFIED THAT THE PURCHASE PAYMENT HAS BEEN COLLECTED.
DRAFTS WRITTEN ON CSIF MONEY MARKET DURING THE HOLD PERIOD WILL BE RETURNED FOR
UNCOLLECTED FUNDS. YOUR SHARES WILL BE REDEEMED AT THE NEXT NAV CALCULATED AFTER
YOUR REDEMPTION REQUEST IS RECEIVED (LESS ANY APPLICABLE CDSC). THE PROCEEDS
WILL NORMALLY BE SENT TO YOU ON THE NEXT BUSINESS DAY, BUT IF MAKING IMMEDIATE
PAYMENT COULD ADVERSELY AFFECT YOUR FUND, IT MAY TAKE UP TO SEVEN (7) DAYS TO
MAKE PAYMENT. CALVERT MONEY CONTROLLER REDEMPTIONS GENERALLY WILL BE CREDITED TO
YOUR BANK ACCOUNT BY THE SECOND BUSINESS DAY AFTER YOUR PHONE CALL. THE FUNDS
HAVE THE RIGHT TO REDEEM SHARES IN ASSETS OTHER THAN CASH FOR REDEMPTION AMOUNTS
EXCEEDING, IN ANY 90-DAY PERIOD, $250,000 OR 1% OF THE NET ASSET VALUE OF THE
AFFECTED FUND, WHICHEVER IS LESS. WHEN THE NYSE IS CLOSED (OR WHEN TRADING IS
RESTRICTED) FOR ANY REASON OTHER THAN ITS CUSTOMARY WEEKEND OR HOLIDAY CLOSINGS,
OR UNDER ANY EMERGENCY CIRCUMSTANCES AS DETERMINED BY THE SECURITIES AND
EXCHANGE COMMISSION, REDEMPTIONS MAY BE SUSPENDED OR PAYMENT DATES
POSTPONED.PLEASE NOTE THAT THERE ARE SOME FEDERAL HOLIDAYS, HOWEVER, SUCH AS
COLUMBUS DAY AND VETERANS' DAY, WHEN THE NYSE IS OPEN AND THE FUND IS OPEN BUT
REDEMPTIONS CANNOT BE MAILED OR WIRED BECAUSE THE POST OFFICES AND BANKS ARE
CLOSED.
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 219544, KANSAS CITY, MO 64121-9544
YOUR LETTER SHOULD INCLUDE YOUR ACCOUNT NUMBER AND FUND AND THE NUMBER OF SHARES
OR THE DOLLAR AMOUNT YOU ARE REDEEMING. PLEASE PROVIDE A DAYTIME TELEPHONE
NUMBER, IF POSSIBLE, FOR US TO CALL IF WE HAVE QUESTIONS. IF THE MONEY IS BEING
SENT TO A NEW BANK, PERSON, OR ADDRESS OTHER THAN THE ADDRESS OF RECORD, YOUR
LETTER MUST BE SIGNATURE GUARANTEED.
DRAFTWRITING (CSIF MONEY MARKET PORTFOLIO ONLY)
YOU MAY REDEEM SHARES IN YOUR CSIF MONEY MARKET PORTFOLIO ACCOUNT BY WRITING A
DRAFT FOR AT LEAST $250. IF YOU COMPLETE AND RETURN THE SIGNATURE CARD FOR
DRAFTWRITING, THE PORTFOLIO WILL MAIL BANK DRAFTS TO YOU, PRINTED WITH YOUR NAME
AND ADDRESS. DRAFTS MAY NOT BE ORDERED UNTIL YOUR INITIAL PURCHASE HAS CLEARED.
CALVET WILL PROVIDE PRINTED DRAFTS (CHECKS) YOU MAY NOT PRINT YOUR OWN. ANY
CUSTOMER-PRINTED CHECKS WILL NOT BE HONORED AND WILL BE RETURNED WITHOUT NOTICE.
CSIF MONEY MARKET WILL CHARGE A SERVICE FEE OF $25 FOR DRAFTS RETURNED
<PAGE>
FOR INSUFFICIENT OR UNCOLLECTED FUNDS. CSIF MONEY MARKET WILL CHARGE $25 FOR ANY
STOP PAYMENT ON DRAFTS. AS A SERVICE TO SHAREHOLDERS, SHARES MAY BE
AUTOMATICALLY TRANSFERRED BETWEEN YOUR CALVERT ACCOUNTS TO COVER DRAFTS YOU HAVE
WRITTEN. THE SIGNATURE OF ONLY ONE AUTHORIZED SIGNER IS REQUIRED TO HONOR A
DRAFT.
SYSTEMATIC CHECK REDEMPTIONS
IF YOU MAINTAIN AN ACCOUNT WITH A BALANCE OF $10,000 OR MORE, YOU MAY HAVE UP TO
TWO (2) REDEMPTION CHECKS FOR A FIXED AMOUNT SENT TO YOU ON THE 15TH OF THE
MONTH, SIMPLY BY SENDING A LETTER WITH ALL INFORMATION, INCLUDING YOUR ACCOUNT
NUMBER, AND THE DOLLAR AMOUNT ($100 MINIMUM). IF YOU WOULD LIKE A REGULAR CHECK
MAILED TO ANOTHER PERSON OR PLACE, YOUR LETTER MUST BE SIGNATURE GUARANTEED.
UNLESS THEY OTHERWISE QUALIFY FOR A WAIVER, CLASS B OR CLASS C SHARES REDEEMED
BY SYSTEMATIC CHECK REDEMPTION WILL BE SUBJECT TO THE CONTINGENT DEFERRED SALES
CHARGE.
CORPORATIONS AND ASSOCIATIONS
YOUR LETTER OF INSTRUCTION AND CORPORATE RESOLUTION SHOULD BE SIGNED BY
PERSON(S) AUTHORIZED TO ACT ON THE ACCOUNT, ACCOMPANIED BY SIGNATURE
GUARANTEE(S).
TRUSTS
YOUR LETTER OF INSTRUCTION SHOULD BE SIGNED BY THE TRUSTEE(S) (AS TRUSTEE(S)),
WITH A SIGNATURE GUARANTEE. (IF THE TRUSTEE'S NAME IS NOT REGISTERED ON YOUR
ACCOUNT, PLEASE PROVIDE A COPY OF THE TRUST DOCUMENT, CERTIFIED WITHIN THE LAST
60 DAYS.)
THROUGH YOUR DEALER
YOUR DEALER MUST RECEIVE YOUR REQUEST BEFORE THE CLOSE OF REGULAR TRADING ON THE
NYSE TO RECEIVE THAT DAY'S NAV. YOUR DEALER WILL BE RESPONSIBLE FOR FURNISHING
ALL NECESSARY DOCUMENTATION TO CALVERT GROUP AND MAY CHARGE YOU FOR SERVICES
PROVIDED.
FINANCIAL HIGHLIGHTS
THE FINANCIAL HIGHLIGHTS TABLE IS INTENDED TO HELP YOU UNDERSTAND THE FUNDS'
FINANCIAL PERFORMANCE FOR THE PAST FIVE (5) FISCAL YEARS (OR IF SHORTER, THE
PERIOD OF THE FUND'S OPERATIONS). THE FUNDS' FISCAL YEAR END IS SEPTEMBER 30.
CERTAIN INFORMATION REFLECTS FINANCIAL RESULTS FOR A SINGLE SHARE, BY FUND AND
CLASS. THE TOTAL RETURNS IN THE TABLE REPRESENT THE RATE THAT AN INVESTOR WOULD
HAVE EARNED (OR LOST) ON AN INVESTMENT IN A FUND (ASSUMING REINVESTMENT OF ALL
DIVIDENDS AND DISTRIBUTIONS), AND DOES NOT REFLECT ANY APPLICABLE FRONT- OR
BACK-END SALES CHARGE. THIS INFORMATION HAS BEEN AUDITED BY
PRICEWATERHOUSECOOPERS LLP WHOSE REPORT, ALONG WITH A FUND'S FINANCIAL
STATEMENTS, ARE INCLUDED IN THE FUND'S ANNUAL REPORT, WHICH IS AVAILABLE UPON
REQUEST.
BALANCED PORTFOLIO
FINANCIAL HIGHLIGHTS
YEARS ENDED SEPTEMBER 30,
CLASS A SHARES 1999 1998 1997 1996
NET ASSET VALUE, BEGINNING $32.45 $34.88 $31.35 $32.81
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .68 .77 .83 .78
NET REALIZED AND UNREALIZED
GAIN (LOSS) 3.03 .92 5.61 2.28
TOTAL FROM INVESTMENT
OPERATIONS 3.71 1.69 6.44 3.06
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.66) (.76) (.81) (.77)
NET REALIZED GAIN (3.36) (3.36) (2.10) (3.75)
TOTAL DISTRIBUTIONS (4.02) (4.12) (2.91) (4.52)
TOTAL INCREASE (DECREASE) IN
NET ASSET VALUE (.31) (2.43) 3.53 (1.46)
NET ASSET VALUE, ENDING $32.14 $32.45 $34.88 $31.35
TOTAL RETURN* 11.52% 5.50% 21.94% 10.27%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME 2.05% 2.27% 2.57% 2.58%
TOTAL EXPENSES 1.17% 1.13% 1.14% 1.28%
EXPENSES BEFORE OFFSET 1.17% 1.13% 1.14% 1.28%
NET EXPENSES 1.15% 1.11% 1.12% 1.26%
PORTFOLIO TURNOVER 175% 185% 215% 111%
NET ASSETS, ENDING (IN THOUSANDS) $708,655 $673,907 $675,306 $594,482
NUMBER OF SHARES OUTSTANDING,
ENDING (IN THOUSANDS) 22,049 20,768 19,362 18,964
YEARS ENDED SEPTEMBER 30,
CLASS A SHARES 1995
NET ASSET VALUE, BEGINNING $28.77
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .87
NET REALIZED AND UNREALIZED
GAIN (LOSS) 4.25
TOTAL FROM INVESTMENT OPERATIONS 5.12
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.87)
NET REALIZED GAIN (.21)
TOTAL DISTRIBUTIONS (1.08)
TOTAL INCREASE (DECREASE) IN
NET ASSET VALUE 4.04
NET ASSET VALUE, ENDING $32.81
TOTAL RETURN* 18.21%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME 2.89
TOTAL EXPENSES + 1.28%
EXPENSES BEFORE OFFSET
NET EXPENSES 1.26%
PORTFOLIO TURNOVER 114%
NET ASSETS, ENDING (IN THOUSANDS) $560,981
NUMBER OF SHARES OUTSTANDING,
ENDING (IN THOUSANDS) 17,099
FINANCIAL HIGHLIGHTS
CSIF BALANCED
YEARS ENDED SEPTEMBER 30,
1999 1998 #
CLASS B SHARES
NET ASSET VALUE, BEGINNING $32.38 $34.37
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .35 0.15
NET REALIZED AND UNREALIZED GAIN (LOSS) 2.94 (1.90)
TOTAL FROM INVESTMENT OPERATIONS 3.29 (1.75)
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.34) (0.24)
NET REALIZED GAIN (3.36) -
TOTAL DISTRIBUTIONS 3.70) (0.24)
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE (.41) (1.99)
NET ASSET VALUE, ENDING $31.97 $32.38
TOTAL RETURN* 10.15% (5.10%)
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME .85% 1.22%(A)
TOTAL EXPENSES 2.40% 2.43%(A)
EXPENSES BEFORE OFFSET 2.40% 3.59% (A)
NET EXPENSES 2.38% 2.41%(A)
PORTFOLIO TURNOVER 175% 185%
NET ASSETS, ENDING (IN THOUSANDS) $9,910 $2,540
NUMBER OF SHARES OUTSTANDING,
ENDING (IN THOUSANDS) 310 78
FINANCIAL HIGHLIGHTS
CSIF BALANCED
YEARS ENDED SEPTEMBER 30,
CLASS C SHARES 1999 1998 1997 1996
NET ASSET VALUE, BEGINNING $32.05 $34.52 $31.05 $32.60
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .36 .41 .47 .46
NET REALIZED AND UNREALIZED
GAIN (LOSS) 2.98 .89 5.54 2.17
TOTAL FROM INVESTMENT
OPERATIONS 3.34 1.30 6.01 2.63
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.33) (.41) (.44) (.43)
NET REALIZED GAIN (3.36) (3.36) (2.10) (3.75)
TOTAL DISTRIBUTIONS (3.69) (3.77) (2.54) (4.18)
TOTAL INCREASE (DECREASE)
IN NET ASSET VALUE (.35) (2.47) 3.47 (1.55)
NET ASSET VALUE, ENDING $31.70 $32.05 $34.52 $31.05
TOTAL RETURN* 10.43% 4.35% 20.56% 8.85%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME 1.04% 1.16% 1.42% 1.34%
TOTAL EXPENSES 2.19% 2.25% 2.29% 2.52%
EXPENSES BEFORE OFFSET 2.19% 2.25% 2.29% 2.52%
NET EXPENSES 2.17% 2.23% 2.27% 2.50%
PORTFOLIO TURNOVER 175% 185% 215% 111%
NET ASSETS, ENDING (IN THOUSANDS) $13,646 $11,483 $8,898 $6,715
NUMBER OF SHARES OUTSTANDING,
ENDING (IN THOUSANDS) 430 358 258 216
YEARS ENDED SEPTEMBER 30,
CLASS C SHARES 1995
NET ASSET VALUE, BEGINNING $28.65
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .54
NET REALIZED AND UNREALIZED GAIN (LOSS) 4.20
TOTAL FROM INVESTMENT OPERATIONS 4.74
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.58)
NET REALIZED GAIN (.21)
TOTAL DISTRIBUTIONS (.79)
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE 3.95
NET ASSET VALUE, ENDING $32.60
TOTAL RETURN* 16.85%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME 1.61%
TOTAL EXPENSES 2.51%
EXPENSES BEFORE OFFSET 2.51%
NET EXPENSES 2.50%
PORTFOLIO TURNOVER 114%
NET ASSETS, ENDING (IN THOUSANDS) $4,065
NUMBER OF SHARES OUTSTANDING,
ENDING (IN THOUSANDS) 125
FINANCIAL HIGHLIGHTS
MANAGED INDEX PORTFOLIO
CLASS A
SHARES
PERIODS ENDED SEPTEMBER 30,
1999 1998 ##
NET ASSET VALUE, BEGINNING $13.54 $15.00
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .03 .02
NET REALIZED AND UNREALIZED GAIN (LOSS) 3.31 (1.48)
TOTAL FROM INVESTMENT OPERATIONS 3.34 (1.46)
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.05) ----
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE 3.29 (1.46)
NET ASSET VALUE, ENDING $16.83 $13.54
TOTAL RETURN* 24.68% (9.73%)
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME .14% .42%(A)
TOTAL EXPENSES 1.59% 1.01%(A)
EXPENSES BEFORE OFFSETS 1.31% 1.01% (A)
NET EXPENSES 1.25% .95%(A
PORTFOLIO TURNOVER 56% 27%
NET ASSETS, ENDING (IN THOUSANDS) $12,257 $4,401
NUMBER OF SHARES OUTSTANDING,
ENDING (IN THOUSANDS) 728 325
FINANCIAL HIGHLIGHTS
MANAGED INDEX PORTFOLIO
CLASS B
SHARES
PERIODS ENDED SEPTEMBER 30,
1999 1998 ##
NET ASSET VALUE, BEGINNING $13.48 $15.00
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME (.11) (.03)
NET REALIZED AND UNREALIZED GAIN (LOSS) 3.21 (1.49)
TOTAL FROM INVESTMENT OPERATIONS 3.10 (1.52)
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE 3.10 (1.52)
NET ASSET VALUE, ENDING $16.58 $13.48
TOTAL RETURN* 23.00% (10.13%)
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME . (1.11%) (.98%)(A)
TOTAL EXPENSES 2.67% 2.56%(A)
EXPENSES BEFORE OFFSETS 2.56% 2.56% (A)
NET EXPENSES 2.50% 2.50%(A)
PORTFOLIO TURNOVER 56% 27%
NET ASSETS, ENDING (IN THOUSANDS) $4,078 $975
NUMBER OF SHARES OUTSTANDING,
ENDING (IN THOUSANDS) 246 72
CLASS C
SHARES
PERIOD ENDED
SEPTEMBER 30,
1999 1998 ^^
NET ASSET VALUE, BEGINNING $13.52 $14.52
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME (.09) (.02)
NET REALIZED AND UNREALIZED GAIN (LOSS) 3.19 (.98)
TOTAL FROM INVESTMENT OPERATIONS 3.10 (1.00)
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE 3.10 (1.00)
NET ASSET VALUE, ENDING $16.62 $13.52
TOTAL RETURN* 22.93% (6.89%)
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME (1.12%) (.96%)(A)
TOTAL EXPENSES 2.68% 4.82%(A)
EXPENSES BEFORE OFFSETS 2.56% 2.56% (A)
NET EXPENSES 2.50% 2.50%(A)
PORTFOLIO TURNOVER 56% 27%
NET ASSETS, ENDING (IN THOUSANDS) $2,454 $397
NUMBER OF SHARES OUTSTANDING,
ENDING (IN THOUSANDS) 148 29
FINANCIAL HIGHLIGHTS
EQUITY PORTFOLIO
YEARS ENDED SEPTEMBER 30,
CLASS A SHARES 1999 1998 1997 1996
NET ASSET VALUE, BEGINNING $20.36 $27.77 $22.54 $21.12
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME (.07) (.04) - .03
NET REALIZED AND UNREALIZED
GAIN (LOSS) 6.78 (4.01) 6.73 3.26
TOTAL FROM INVESTMENT OPERATIONS 6.71 (4.05) 6.73 3.29
DISTRIBUTIONS FROM
NET INVESTMENT INCOME - - (.01) (.06)
NET REALIZED GAIN (.01) (3.36) (1.49) (1.81)
TOTAL DISTRIBUTIONS (.01) (3.36) (1.50) (1.87)
TOTAL INCREASE (DECREASE) IN NET
ASSET VALUE 6.70 (7.41) $5.23 1.42
NET ASSET VALUE, ENDING $27.06 20.36 $27.77 $22.54
TOTAL RETURN* 32.98% (5.70%) 31.34% 16.62%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME (.28%) (.14%) .03% .15%
TOTAL EXPENSES 1.22% 1.16% 1.21% 1.29%
EXPENSES BEFORE OFFSETS 1.22% 1.16% 1.21% 1.29%
NET EXPENSES 1.10% 1.07% 1.20% 1.27%
PORTFOLIO TURNOVER 51% 110% 93% 118%
NET ASSETS, ENDING (IN THOUSANDS) $166,716 $128,683 $147,002 $101,344
NUMBER OF SHARES OUTSTANDING,
ENDING (IN THOUSANDS) 6,160 6,320 5,294 4,496
YEARS ENDED SEPTEMBER 30,
CLASS A SHARES 1995
NET ASSET VALUE, BEGINNING $20.13
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .06
NET REALIZED AND UNREALIZED GAIN (LOSS) 2.22
TOTAL FROM INVESTMENT OPERATIONS 2.28
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.04)
NET REALIZED GAIN (1.25)
TOTAL DISTRIBUTIONS (1.29)
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE .99
NET ASSET VALUE, ENDING $21.12
TOTAL RETURN* 12.43%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME .32%
TOTAL EXPENSES 1.38%
NET EXPENSES 1.36%
PORTFOLIO TURNOVER 35%
NET ASSETS, ENDING (IN THOUSANDS) $90,951
NUMBER OF SHARES OUTSTANDING,
ENDING (IN THOUSANDS) 4,307
FINANCIAL HIGHLIGHTS
EQUITY PORTFOLIO
PERIOD ENDED
SEPTEMBER 30,
CLASS B SHARES 1999 1998 #
NET ASSET VALUE, BEGINNING $20.26 $26.01
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME (.15) (.09)
NET REALIZED AND UNREALIZED GAIN (LOSS) 6.50 (5.66)
TOTAL FROM INVESTMENT OPERATIONS 6.35 (5.75)
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE 6.34 (5.75)
NET ASSET VALUE, ENDING $26.60 $20.26
TOTAL RETURN* 31.37% (22.11%)
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME (1.41%) (1.55%)(A)
TOTAL EXPENSES 2.43% 4.12%(A)
EXPENSES BEFORE OFFSETS 2.43% 3.19% (A)
NET EXPENSES 2.21% 2.56%(A)
PORTFOLIO TURNOVER 51% 110%
NET ASSETS, ENDING (IN THOUSANDS) $8,038 $1,670
NUMBER OF SHARES OUTSTANDING,
ENDING (IN THOUSANDS) 302 82
FINANCIAL HIGHLIGHTS
EQUITY PORTFOLIO
YEARS ENDED SEPTEMBER 30,
CLASS C SHARES 1999
NET ASSET VALUE, BEGINNING $19.00
INCOME FROM INVESTMENT OPERATIONS.
NET INVESTMENT INCOME (LOSS) (.11)
NET REALIZED AND UNREALIZED
GAIN (LOSS) 6.12
TOTAL FROM INVESTMENT OPERATIONS 6.01
DISTRIBUTIONS FROM
NET INVESTMENT INCOME -
NET REALIZED GAIN (.01)
TOTAL DISTRIBUTIONS (.01)
TOTAL INCREASE (DECREASE) IN NET
ASSET VALUE 6.00
NET ASSET VALUE, ENDING $25.00
TOTAL RETURN* 31.66%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME (LOSS) (1.21%)
TOTAL EXPENSES 2.22%
EXPENSES BEFORE OFFSETS 2.22%
NET EXPENSES 2.01%
PORTFOLIO TURNOVER 51%
NET ASSETS, ENDING (IN THOUSANDS) $10,413
NUMBER OF SHARES OUTSTANDING,
ENDING (IN THOUSANDS) 417
FINANCIAL HIGHLIGHTS
EQUITY PORTFOLIO
YEARS ENDED SEPTEMBER 30,
CLASS C SHARES 1998 1997 1996
NET ASSET VALUE, BEGINNING $26.37 $21.71 $20.66
INCOME FROM INVESTMENT OPERATIONS.
NET INVESTMENT INCOME (LOSS) (.16) (.05) (.16)
NET REALIZED AND UNREALIZED
GAIN (LOSS) (3.85) 6.21 3.04
TOTAL FROM INVESTMENT OPERATIONS (4.01) 6.16 2.88
DISTRIBUTIONS FROM
NET INVESTMENT INCOME - (.01) (.02)
NET REALIZED GAIN 3.36) (1.49) (1.81)
TOTAL DISTRIBUTIONS (3.36) (1.50) (1.83)
TOTAL INCREASE (DECREASE) IN NET
ASSET VALUE (7.37) 4.66 1.05
NET ASSET VALUE, ENDING $19.00 $26.37 $21.71
TOTAL RETURN* (16.47%) 29.84% 14.85%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME (LOSS) (1.17%) (1.08%) (1.42%)
TOTAL EXPENSES 2.21% 2.31% 2.86%
EXPENSES BEFORE OFFSETS 2.21% 2.31% 2.86%
NET EXPENSES 2.09% 2.30% 2.85%
PORTFOLIO TURNOVER 110% 93% 118%
NET ASSETS, ENDING (IN THOUSANDS) $5,981 $6,249 $2,996
NUMBER OF SHARES OUTSTANDING,
ENDING (IN THOUSANDS) 315 237 138
PERIODS ENDED SEPTEMBER 30,
CLASS C SHARES 1995
NET ASSET VALUE, BEGINNING $19.98
INCOME FROM INVESTMENT OPERATIONS.
NET INVESTMENT INCOME (.03)
NET REALIZED AND UNREALIZED GAIN (LOSS) 2.05
TOTAL FROM INVESTMENT OPERATIONS 2.02
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.09)
NET REALIZED GAIN (1.25)
TOTAL DISTRIBUTIONS (1.34)
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE .68
NET ASSET VALUE, ENDING $20.66
TOTAL RETURN* 11.16%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME (LOSS) (.84%)
TOTAL EXPENSES 2.51%
EXPENSES BEFORE OFFSET 2.51%
NET EXPENSES 2.50%
EXPENSES REIMBURSED 1.07%
PORTFOLIO TURNOVER 35%
NET ASSETS, ENDING (IN THOUSANDS) $1,802
NUMBER OF SHARES OUTSTANDING,
ENDING (IN THOUSANDS) 87
FINANCIAL HIGHLIGHTS
CALVERT CAPITAL ACCUMULATION
YEARS ENDED SEPTEMBER 30,
CLASS A SHARES 1999
NET ASSET VALUE, BEGINNING $25.43
NET INVESTMENT INCOME (LOSS) (.32)
NET REALIZED AND UNREALIZED GAIN (LOSS) 4.25
TOTAL FROM INVESTMENT OPERATIONS 3.93
DISTRIBUTIONS FROM
NET INVESTMENT INCOME -
NET REALIZED GAIN (3.48)
TOTAL DISTRIBUTIONS (3.48)
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE .45
NET ASSET VALUE, ENDING $25.88
TOTAL RETURN * 14.91%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME (LOSS) (1.26%)
TOTAL EXPENSES 1.73%
EXPENSES BEFORE OFFSETS 1.73
NET EXPENSES 1.58%
PORTFOLIO TURNOVER 88%
NET ASSETS, ENDING (IN THOUSANDS) 102,508
NUMBER OF SHARES OUTSTANDING ENDING
(IN THOUSANDS) 3,962
FINANCIAL HIGHLIGHTS
CALVERT CAPITAL ACCUMULATION
YEARS ENDED SEPTEMBER 30,
CLASS A SHARES 1998 1997
NET ASSET VALUE, BEGINNING $27.21 $22.55
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME (LOSS) (.25) (.25)
NET REALIZED AND UNREALIZED GAIN (LOSS) .96 4.91
TOTAL FROM INVESTMENT OPERATIONS .71 4.66
DISTRIBUTIONS FROM
NET INVESTMENT INCOME - -
NET REALIZED GAIN (2.49) -
TOTAL DISTRIBUTIONS (2.49) -
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE (1.78) 4.66
NET ASSET VALUE, ENDING $25.43 $27.21
TOTAL RETURN * 3.37% 20.67%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME (LOSS) (1.08%) (1.09%)
TOTAL EXPENSES 1.74% 1.91%
EXPENSES BEFORE OFFSETS 1.74% 1.91%
NET EXPENSES 1.61% 1.85%
EXPENSES REIMBURSED - -
PORTFOLIO TURNOVER 77% 126%
NET ASSETS, ENDING (IN THOUSANDS) $75,068 $54,751
NUMBER OF SHARES OUTSTANDING ENDING
(IN THOUSANDS) 2,952 2,012
PERIODS ENDED SEPTEMBER 30,
CLASS A SHARES 1996 1995^
NET ASSET VALUE, BEGINNING $21.48 $15.00
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME (LOSS) (.24) (.11)
NET REALIZED AND UNREALIZED GAIN (LOSS) 1.88 6.61
TOTAL FROM INVESTMENT OPERATIONS 1.64 6.50
DISTRIBUTIONS FROM
NET INVESTMENT INCOME - (.02)
NET REALIZED GAIN (.57) -
TOTAL DISTRIBUTIONS (.57) (.02)
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE 1.07 6.48
NET ASSET VALUE, ENDING $22.55 $21.48
TOTAL RETURN* 7.92% 43.40%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME (LOSS) (1.56%) (1.55%)(A)
TOTAL EXPENSES 2.16% 2.35%(A)
EXPENSES BEFORE OFFSET
NET EXPENSES 1.98% 2.06%(A)
EXPENSES REIMBURSED - .05%(A)
PORTFOLIO TURNOVER 114% 95%
NET ASSETS, ENDING (IN THOUSANDS) $39,834 $16,111
NUMBER OF SHARES OUTSTANDING, ENDING
(IN THOUSANDS) 1,767 750
FINANCIAL HIGHLIGHTS
CALVERT CAPITAL ACCUMULATION
PERIOD ENDED
SEPTEMBER 30,
CLASS B SHARES 1999 1998 #
NET ASSET VALUE, BEGINNING $25.28 $28.39
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME (LOSS) (.41) (.16)
NET REALIZED AND UNREALIZED GAIN (LOSS) 4.07 (2.95)
TOTAL FROM INVESTMENT OPERATIONS 3.66 (3.11)
DISTRIBUTIONS FROM
NET INVESTMENT INCOME -- -
NET REALIZED GAIN (3.48) -
TOTAL DISTRIBUTIONS (3.48) -
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE .18 (3.11)
NET ASSET VALUE, ENDING $25.46 $25.28
TOTAL RETURN* 13.85% (10.95)%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME (LOSS) (2.11%) (2.62%)
TOTAL EXPENSES 2.67% 3.31%
EXPENSES BEFORE OFFSETS 2.67% 3.31% (A)
NET EXPENSES 2.42% 3.01% (A)
PORTFOLIO TURNOVER 88% 77%
NET ASSETS, ENDING (IN THOUSANDS) 9,445 $3,311
NUMBER OF SHARES OUTSTANDING, ENDING
(IN THOUSANDS) 371 131
FINANCIAL HIGHLIGHTS
CALVERT CAPITAL ACCUMULATION
YEARS ENDED SEPTEMBER 30,
CLASS C SHARES 1999
NET ASSET VALUE, BEGINNING $24.63
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME (LOSS) (.51)
NET REALIZED AND UNREALIZED GAIN (LOSS) 4.12
TOTAL FROM INVESTMENT OPERATIONS 3.61
DISTRIBUTIONS FROM
NET INVESTMENT INCOME -
NET REALIZED GAIN (3.48)
TOTAL DISTRIBUTIONS (3.48)
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE .13
NET ASSET VALUE, ENDING $24.76
TOTAL RETURN* 14.02%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME (LOSS) (2.04%)
TOTAL EXPENSES 2.56%
EXPENSES BEFORE OFFSETS 2.56%
EXPENSES BEFORE OFFSET
NET EXPENSES 2.35%
EXPENSES REIMBURSED -
PORTFOLIO TURNOVER 88%
NET ASSETS, ENDING (IN THOUSANDS) 9,021
NUMBER OF SHARES OUTSTANDING, ENDING
(IN THOUSANDS) 364
YEARS ENDED SEPTEMBER 30,
CLASS C SHARES 1998 1997
NET ASSET VALUE, BEGINNING $26.64 $22.34
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME (LOSS (.40) (.47)
NET REALIZED AND UNREALIZED GAIN (LOSS) .88 4.77
TOTAL FROM INVESTMENT OPERATIONS .48 4.30
DISTRIBUTIONS FROM
NET INVESTMENT INCOME - -
NET REALIZED GAIN (2.49) -
TOTAL DISTRIBUTIONS (2.49) -
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE (2.01) 4.30
NET ASSET VALUE, ENDING $24.63 $26.64
TOTAL RETURN* 2.52% 19.25%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME (LOSS) (1.98%) (2.30%)
TOTAL EXPENSES 2.75% 3.11%
EXPENSES BEFORE OFFSETS 2.75% 3.11%
NET EXPENSES 2.50% 3.05%
EXPENSES REIMBURSED - -
PORTFOLIO TURNOVER 77% 126%
NET ASSETS, ENDING (IN THOUSANDS) $6,548 $4,184
NUMBER OF SHARES OUTSTANDING, ENDING (IN THOUSANDS) 266 157
PERIODS ENDED SEPTEMBER 30,
CLASS C SHARES 1996 1995^
NET ASSET VALUE, BEGINNING $21.55 $15.00
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME (LOSS) (.55) (.15)
NET REALIZED AND UNREALIZED GAIN (LOSS) 1.91 6.70
TOTAL FROM INVESTMENT OPERATIONS 1.36 6.55
DISTRIBUTIONS FROM
NET INVESTMENT INCOME - -
NET REALIZED GAIN (.57) -
TOTAL DISTRIBUTIONS (.57) -
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE .79 6.55
NET ASSET VALUE, ENDING $22.34 $21.55
TOTAL RETURN* 6.56% 43.67%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME (LOSS) (2.82%) (3.13%)(A)
TOTAL EXPENSES 3.42% 3.79%(A)
EXPENSES BEFORE OFFSET
NET EXPENSES 3.24% 3.50%(A)
EXPENSES REIMBURSED - 2.79%(A)
PORTFOLIO TURNOVER 114% 95%
NET ASSETS, ENDING (IN THOUSANDS) $3,164 $1,992
NUMBER OF SHARES OUTSTANDING, ENDING
(IN THOUSANDS) 142 92
FINANCIAL HIGHLIGHTS
CALVERT WORLD VALUES INTERNATIONAL EQUITY
YEARS ENDED
CLASS A SHARES 1999
NET ASSET VALUE, BEGINNING $18.57
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .01
NET REALIZED AND UNREALIZED GAIN (LOSS) 4.94
TOTAL FROM INVESTMENT OPERATIONS 4.95
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.07)
NET REALIZED GAINS (1.56)
TOTAL DISTRIBUTIONS (1.64)
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE 3.32
NET ASSET VALUE, ENDING $17.62
TOTAL RETURN* 27.53%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME (LOSS) .04%
TOTAL EXPENSES 1.87%
EXPENSES BEFORE OFFSET 1.87%
NET EXPENSES 1.83%
PORTFOLIO TURNOVER 82%
NET ASSETS, ENDING (IN THOUSANDS) $231,516
NUMBER OF SHARES OUTSTANDING,
ENDING (IN THOUSANDS) 10,576
YEARS ENDED SEPTEMBER 30,
CLASS A SHARES 1998 1997 1996
NET ASSET VALUE, BEGINNING $22.06 $18.62 $17.62
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME (.06) .10 .04
NET REALIZED AND UNREALIZED GAIN (LOSS) (2.11) 3.81 1.53
TOTAL FROM INVESTMENT OPERATIONS (2.05) 3.91 1.57
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.06) (.05) (.13)
EXCESS OF NET INVESTMENT INCOME - - -
NET REALIZED GAIN (LOSS) (1.38) (.42) (.44)
TOTAL DISTRIBUTIONS (1.44) (.47) (.57)
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE (3.49) 3.44 1.00
NET ASSET VALUE, ENDING $18.57 $22.06 $18.62
TOTAL RETURN* (9.29%) 21.44% 9.22%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME (LOSS) .27% .51% .23%
TOTAL EXPENSES+ 1.86% 1.91% 1.95%
EXPENSES BEFORE OFFSETS 1.86% 1.91% 1.95%
NET EXPENSES 1.80% 1.76% 1.81%
PORTFOLIO TURNOVER 84% 58% 96%
NET ASSETS, ENDING (IN THOUSANDS) $195,192 $225,169 $194,032
NUMBER OF SHARES OUTSTANDING,
ENDING (IN THOUSANDS) 10,510 10,207 10,422
YEARS ENDED
CLASS A SHARES 1995
NET ASSET VALUE, BEGINNING $17.99
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .11
NET REALIZED AND UNREALIZED GAIN (LOSS) .38
TOTAL FROM INVESTMENT OPERATIONS .49
DISTRIBUTIONS FROM
NET INVESTMENT INCOME -
EXCESS OF NET INVESTMENT INCOME -
NET REALIZED GAINS (.86)
TOTAL DISTRIBUTIONS (.86)
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE (.37)
NET ASSET VALUE, ENDING $17.62
TOTAL RETURN* 3.19%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME (LOSS) .68%
TOTAL EXPENSES 1.93%
EXPENSES BEFORE OFFSETS 1.93%
NET EXPENSES 1.79%
PORTFOLIO TURNOVER 73%
NET ASSETS, ENDING (IN THOUSANDS) $191,586
NUMBER OF SHARES OUTSTANDING,
ENDING (IN THOUSANDS) 10,876
FINANCIAL HIGHLIGHTS
CALVERT WORLD VALUES INTERNATIONAL EQUITY
PERIOD ENDED
SEPTEMBER 30,
CLASS B SHARES 1999 1998^^
NET ASSET VALUE, BEGINNING $18.48 $21.83
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME (.15) (.05)
NET REALIZED AND UNREALIZED GAIN (LOSS) 4.79 (3.30)
TOTAL FROM INVESTMENT OPERATION 4.64 (3.35)
DISTRIBUTIONS FROM
NET REALIZED GAINS (1.56) ----
TOTAL DISTRIBUTIONS (1.56) ----
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE 3.08 (3.35)
NET ASSET VALUE, ENDING $21.56 $18.48
TOTAL RETURN* 25.84% (15.35%)
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME (LOSS) (1.20%) (.99%)(A)
TOTAL EXPENSES 3.62% 6.11%(A)
EXPENSES BEFORE OFFSETS 3.20% 3.22%(A)
NET EXPENSES 3.16% 3.16%(A)
PORTFOLIO TURNOVER 82% 84%
NET ASSETS, ENDING (IN THOUSANDS). $3,133 $879
NUMBER OF SHARES OUTSTANDING,
ENDING (IN THOUSANDS) 145 48
FINANCIAL HIGHLIGHTS
CALVERT WORLD VALUES INTERNATIONAL EQUITY
YEARS ENDED
CLASS C SHARES 1999
NET ASSET VALUE, BEGINNING $17.83
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME (.17)
NET REALIZED AND UNREALIZED GAIN (LOSS) 4.71
TOTAL FROM INVESTMENT OPERATIONS 4.54
DISTRIBUTIONS FROM
NET REALIZED GAINS (1.56)
TOTAL DISTRIBUTIONS (1.56)
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE 2.98
NET ASSET VALUE, ENDING $20.81
TOTAL RETURN* 26.25%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME (LOSS) (.92%)
TOTAL EXPENSES 2.83%
EXPENSES BEFORE OFFSETS 2.83%
NET EXPENSES 2.99%
PORTFOLIO TURNOVER 82%
NET ASSETS, ENDING (IN THOUSANDS) $9,777
NUMBER OF SHARES OUTSTANDING,
ENDING (IN THOUSANDS) 470
YEARS ENDED SEPTEMBER 30,
CLASS C SHARES 1998 1997 1996
NET ASSET VALUE, BEGINNING $21.39 $18.20 $17.28
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME (.13) (.07) (.15)
NET REALIZED AND UNREALIZED GAIN (LOSS) (2.05) 3.68 1.51
TOTAL FROM INVESTMENT OPERATIONS (2.18) 3.61 1.36
DISTRIBUTIONS FROM
NET REALIZED GAIN (LOSS) (1.38) (.42) (.44)
TOTAL DISTRIBUTIONS (1.38) (.47) (.57)
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE (3.56) 3.19 .92
NET ASSET VALUE, ENDING $17.83 $21.39 $18.20
TOTAL RETURN* (10.22%) 20.22% 8.07%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME (LOSS) (.79%) (.47%) (.88%)
TOTAL EXPENSES 2.91% 2.91% 3.08%
EXPENSES BEFORE OFFSETS 2.91% 2.91% 3.08%
NET EXPENSES 2.85% 2.76% 2.93%
PORTFOLIO TURNOVER 84% 58% 96%
NET ASSETS, ENDING (IN THOUSANDS) $8,043 $8,799 $6,779
NUMBER OF SHARES OUTSTANDING,
ENDING (IN THOUSANDS) 451 411 373
YEARS ENDED
CLASS C SHARES 1995
NET ASSET VALUE, BEGINNING $17.86
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME (.05)
NET REALIZED AND UNREALIZED GAIN (LOSS) .32
TOTAL FROM INVESTMENT OPERATIONS .27
DISTRIBUTIONS FROM
NET REALIZED GAINS (.85)
TOTAL DISTRIBUTIONS (.85)
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE (.58)
NET ASSET VALUE, ENDING $17.28
TOTAL RETURN* 1.95%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME (LOSS) (.47%)
TOTAL EXPENSES 3.12%
EXPENSES BEFORE OFFSETS 3.12%
NET EXPENSES 2.99%
PORTFOLIO TURNOVER 73%
NET ASSETS, ENDING (IN THOUSANDS) $6,061
NUMBER OF SHARES OUTSTANDING,
ENDING (IN THOUSANDS) 351
FINANCIAL HIGHLIGHTS
CALVERT NEW VISION SMALL CAP
PERIOD ENDED SEPTEMBER 30,
CLASS A SHARES 1999
NET ASSET VALUE, BEGINNING $12.04
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME (LOSS) (.05)
NET REALIZED AND UNREALIZED GAIN (LOSS) 1.50
TOTAL FROM INVESTMENT OPERATIONS 1.45
DISTRIBUTIONS FROM
NET REALIZED GAIN -
TOTAL DISTRIBUTIONS -
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE 1.45
NET ASSET VALUE, ENDING $13.49
TOTAL RETURN* 12.04%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME (LOSS) (.39%)
TOTAL EXPENSES + 1.96%
EXPENSES BEFORE OFFSETS 1.93%
NET EXPENSES 1.66%
PORTFOLIO TURNOVER 68%
NET ASSETS, ENDING (IN THOUSANDS) $52,961
NUMBER OF SHARES OUTSTANDING,
ENDING (IN THOUSANDS) 3,926
PERIODS ENDED SEPTEMBER 30,
CLASS A SHARES 1998 1997^
NET ASSET VALUE, BEGINNING $15.65 $15.00
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME (LOSS) (.02) (.05)
NET REALIZED AND UNREALIZED GAIN (LOSS) (3.55) .70
TOTAL FROM INVESTMENT OPERATIONS (3.57) .65
DISTRIBUTIONS FROM
NET INVESTMENT INCOME - -
NET REALIZED GAIN (.04) -
TOTAL DISTRIBUTIONS (.04) -
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE (3.61) .65
NET ASSET VALUE, ENDING $12.04 $15.65
TOTAL RETURN* (22.86%) 4.33%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME (LOSS) (.17%) (.71%)(A)
TOTAL EXPENSES 1.82% 1.36% (A)
EXPENSES BEFORE OFFSETS 1.82% 1.36% (A)
NET EXPENSES 1.71% .90%(A)
PORTFOLIO TURNOVER 68% 196%
NET ASSETS, ENDING (IN THOUSANDS) $61,765 $3,260
NUMBER OF SHARES OUTSTANDING,
ENDING (IN THOUSANDS) 5,129 208
PERIOD ENDED SEPTEMBER 30,
CLASS B SHARES 1999 1998#
NET ASSET VALUE, BEGINNING $12.01 $16.18
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME (LOSS) (.15) (.05)
NET REALIZED AND UNREALIZED GAIN (LOSS) 1.43 (4.12)
TOTAL FROM INVESTMENT OPERATIONS 1.28 (4.17)
DISTRIBUTIONS FROM
NET INVESTMENT INCOME -
NET REALIZED GAIN -
TOTAL DISTRIBUTIONS -
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE 1.28 (4.17)
NET ASSET VALUE, ENDING $13.29 $12.01
TOTAL RETURN* 10.66% (25.77%)
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME (LOSS) (1.68%) (1.39%)(A)
TOTAL EXPENSES 3.87% 7.68%(A)
EXPENSES BEFORE OFFSETS 3.33% 3.40%(A)
NET EXPENSES 2.93% 2.99%(A)
PORTFOLIO TURNOVER 68% 68%
NET ASSETS, ENDING (IN THOUSANDS) $1,504 $523
NUMBER OF SHARES OUTSTANDING,
ENDING (IN THOUSANDS) 113 44
PERIOD ENDED SEPTEMBER 30,
CLASS C SHARES 1999
NET ASSET VALUE, BEGINNING $11.95
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME (LOSS) (.22)
NET REALIZED AND UNREALIZED GAIN (LOSS) 1.54
TOTAL FROM INVESTMENT OPERATIONS 1.32
DISTRIBUTIONS FROM
NET REALIZED GAIN -
TOTAL DISTRIBUTIONS -
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE 1.32
NET ASSET VALUE, ENDING $13.27
TOTAL RETURN* 11.05%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME (LOSS) (1.27%)
TOTAL EXPENSES 2.87%
EXPENSES BEFORE OFFSETS 2.84%
NET EXPENSES 2.53%
PORTFOLIO TURNOVER 68%
NET ASSETS, ENDING (IN THOUSANDS) $6,215
NUMBER OF SHARES OUTSTANDING,
ENDING (IN THOUSANDS) 468
PERIODS ENDED SEPTEMBER 30,
CLASS C SHARES 1998 1997^
NET ASSET VALUE, BEGINNING $15.62 $15.00
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME (LOSS) (.15) (.10)
NET REALIZED AND UNREALIZED GAIN (LOSS) (3.48) .72
TOTAL FROM INVESTMENT OPERATIONS (3.63) .62
DISTRIBUTIONS FROM
NET INVESTMENT INCOME - -
NET REALIZED GAIN (.04) -
TOTAL DISTRIBUTIONS (.04) -
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE (3.67) .62
NET ASSET VALUE, ENDING $11.95 $15.62
TOTAL RETURN* (23.31%) 4.13%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME (LOSS) (1.15%) (.95%)(A)
TOTAL EXPENSES 2.78% 1.47%(A)
EXPENSES BEFORE OFFSETS
NET EXPENSES 2.64% 1.15%(A)
EXPENSES REIMBURSED .16% 9.44%(A)
PORTFOLIO TURNOVER 68% 196%
NET ASSETS, ENDING (IN THOUSANDS) $7,097 $318
NUMBER OF SHARES OUTSTANDING,
ENDING (IN THOUSANDS) 594 20
FINANCIAL HIGHLIGHTS
BOND PORTFOLIO
YEARS ENDED SEPTEMBER 30,
CLASS A SHARES 1999 1998 1997 1996
NET ASSET VALUE, BEGINNING $16.88 $16.64 $16.06 $16.34
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .93 .95 .96 .92
NET REALIZED AND UNREALIZED
GAIN (LOSS) (.74) .41 .58 (.29)
TOTAL FROM INVESTMENT
OPERATIONS .19 1.36 1.54 .63
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.93) (.96) (.96) (.91)
NET REALIZED GAIN (.55) (.16) - -
TOTAL DISTRIBUTIONS (1.48) (1.12) (.96) (.91)
TOTAL INCREASE (DECREASE) IN
NET ASSET VALUE (1.29) .24 .58 (.28)
NET ASSET VALUE, ENDING $16.88 $16.64 $16.06
TOTAL RETURN* 1.18% 8.46% 9.89% 3.96%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME 5.79% 5.69% 5.85% 5.60%
TOTAL EXPENSES 1.13% 1.14% 1.23% 1.29%
EXPENSES BEFORE OFFSETS 1.13% 1.14% 1.23% 1.29%
NET EXPENSES 1.09% 1.07% 1.19% 1.26%
PORTFOLIO TURNOVER 570% 620% 319% 22%
NET ASSETS, ENDING (IN THOUSANDS) $66,944 $65,807 $59,656 $62,259
NUMBER OF SHARES OUTSTANDING,
ENDING (IN THOUSANDS) 4,295 3,897 3,585 3,876
YEARS ENDED SEPTEMBER 30,
CLASS A SHARES 1995
NET ASSET VALUE, BEGINNING $15.49
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .96
NET REALIZED AND UNREALIZED GAIN (LOSS) .91
TOTAL FROM INVESTMENT OPERATIONS 1.87
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.93)
NET REALIZED GAIN (.06)
TAX RETURN OF CAPITAL (.03)
TOTAL DISTRIBUTIONS (1.02)
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE .85
NET ASSET VALUE, ENDING $16.34
TOTAL RETURN* 12.57%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME 6.04%
TOTAL EXPENSES 1.24%
EXPENSES BEFORE OFFSETS 1.24%
NET EXPENSES 1.22%
PORTFOLIO TURNOVER 29%
NET ASSETS, ENDING (IN THOUSANDS) $62,929
NUMBER OF SHARES OUTSTANDING,
ENDING (IN THOUSANDS) 3,850
FINANCIAL HIGHLIGHTS
BOND PORTFOLIO
PERIOD ENDED
SEPTEMBER 30
CLASS B SHARES 1999 1998#
NET ASSET VALUE, BEGINNING $16.84 $16.69
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .74 .36
NET REALIZED AND UNREALIZED GAIN (LOSS) (.79) 19
TOTAL FROM INVESTMENT OPERATIONS (.05) 55
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.71) (.40)
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE (1.31) 15
NET ASSET VALUE, ENDING $15.53 $16.84
TOTAL RETURN* (.29%) 3.36%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME 4.43% 4.14%(A)
TOTAL EXPENSES 2.72% 2.55%(A)
EXPENSES BEFORE OFFSETS 2.56% 2.55% (A)
NET EXPENSES 2.50% 2.50%(A)
PORTFOLIO TURNOVER 570% 620%
NET ASSETS, ENDING (IN THOUSANDS) $2,773 $557
NUMBER OF SHARES OUTSTANDING,
ENDING (IN THOUSANDS) 179 33
PERIOD ENDED
SEPTEMBER 30,
CLASS
C SHARES 1999 1998^^
NET ASSET VALUE, BEGINNING $16.84 $16.81
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .74 .21
NET REALIZED AND UNREALIZED GAIN (LOSS) (.80) .08
TOTAL FROM INVESTMENT OPERATIONS (.06) .29
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.72) (.26)
NET REALIZED GAIN (.55)
TOTAL DISTRIBUTIONS (1.27)
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE (1.33) .03
NET ASSET VALUE, ENDING $15.51 $16.84
TOTAL RETURN* (.40%) 1.75%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME 4.41% 4.06%(A)
TOTAL EXPENSES + 2.85% 2.74%(A)
EXPENSES BEFORE OFFSETS 2.55%
NET EXPENSES 2.50% 2.50%(A)
PORTFOLIO TURNOVER 570% 620%
NET ASSETS, ENDING (IN THOUSANDS) $1,779 $399
NUMBER OF SHARES OUTSTANDING,
ENDING (IN THOUSANDS) 115 24
FINANCIAL HIGHLIGHTS
MONEY MARKET PORTFOLIO
YEARS ENDED SEPTEMBER 30,
1999 1998 1997 1996
NET ASSET VALUE, BEGINNING $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .045 .049 .048 .048
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.045) (.049) (.048) (.048)
NET ASSET VALUE, ENDING $1.00 $1.00 $1.00 $1.00
TOTAL RETURN* 4.54% 5.02% 4.89% 4.88%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME 4.43% 4.92% 4.79% 4.77%
TOTAL EXPENSES .90% .94% 1.00% 1.10%
EXPENSES BEFORE OFFSETS .89% .89% .89% .89%
NET EXPENSES .87% .87% .87% .87%
NET ASSETS, ENDING (IN THOUSANDS) $193,941 $172,701 $166,111 $166,516
NUMBER OF SHARES OUTSTANDING,
ENDING (IN THOUSANDS) 194,031 172,739 166,163 166,569
YEARS ENDED SEPTEMBER 30,
1995
NET ASSET VALUE, BEGINNING $1.00
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .050
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.050)
NET ASSET VALUE, ENDING $1.00
TOTAL RETURN 5.13%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME 5.03%
TOTAL EXPENSES 1.07%
EXPENSES BEFORE OFFSETS .89%
NET EXPENSES .87%
NET ASSETS, ENDING (IN THOUSANDS) $153,996
NUMBER OF SHARES OUTSTANDING,
ENDING (IN THOUSANDS) 154,044
(A) ANNUALIZED
# FROM APRIL 1, 1998 INCEPTION.
## FROM APRIL 15, 1998 INCEPTION.
### FROM JUNE 1, 1998 INCEPTION.
^ FROM OCTOBER 31, 1994 INCEPTION.
^^ FROM JANUARY 31, 1997 INCEPTION.
^^^ FROM JUNE 1, 1998 INCEPTION.
* TOTAL RETURN IS NOT ANNUALIZED FOR PERIODS LESS THAN ONE YEAR AND DOES NOT
REFLECT DEDUCATION OF ANY FRONT-END OR DEFERRED SALES CHARGE.
<PAGE>
EXHIBIT A REDUCED SALES CHARGES (CLASS A ONLY)
YOU MAY QUALIFY FOR A REDUCED SALES CHARGE THROUGH SEVERAL PURCHASE PLANS
AVAILABLE. YOU MUST NOTIFY THE FUND AT THE TIME OF PURCHASE TO TAKE ADVANTAGE OF
THE REDUCED SALES CHARGE.
RIGHTS OF ACCUMULATION CAN BE APPLIED TO SEVERAL ACCOUNTS
CLASS A SALES CHARGE BREAKPOINTS ARE AUTOMATICALLY CALCULATED FOR EACH ACCOUNT
BASED ON THE HIGHER OF COST OR CURRENT VALUE OF SHARES PREVIOUSLY PURCHASED.
THIS PRIVILEGE CAN BE APPLIED TO A FAMILY GROUP OR OTHER QUALIFIED GROUP* UPON
REQUEST. SHARES COULD THEN BE PURCHASED AT THE REDUCED SALES CHARGE WHICH
APPLIES TO THE ENTIRE GROUP; THAT IS, BASED ON THE HIGHER OF COST OR CURRENT
VALUE OF SHARES PREVIOUSLY PURCHASED AND CURRENTLY HELD BY ALL THE MEMBERS OF
THE GROUP.
LETTER OF INTENT
IF YOU (OR YOUR GROUP, AS DESCRIBED ABOVE) PLAN TO PURCHASE $50,000 OR MORE OF
CALVERT FUND SHARES OVER THE NEXT 13 MONTHS, YOUR SALES CHARGE MAY BE REDUCED
THROUGH A "LETTER OF INTENT." YOU PAY THE LOWER SALES CHARGE APPLICABLE TO THE
TOTAL AMOUNT YOU PLAN TO INVEST OVER THE 13-MONTH PERIOD, EXCLUDING ANY MONEY
MARKET FUND PURCHASES, INSTEAD OF THE HIGHER 4.75% SALES CHARGE. PART OF YOUR
SHARES WILL BE HELD IN ESCROW, SO THAT IF YOU DO NOT INVEST THE AMOUNT
INDICATED, YOU WILL HAVE TO PAY THE SALES CHARGE APPLICABLE TO THE SMALLER
INVESTMENT ACTUALLY MADE. FOR MORE INFORMATION, SEE THE SAI.
RETIREMENT PLANS UNDER SECTION 457, SECTION 403(B)(7), OR SECTION 401(K)
THERE IS NO SALES CHARGE ON SHARES PURCHASED FOR THE BENEFIT OF A RETIREMENT
PLAN UNDER SECTION 457 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED
("CODE"), OR FOR A PLAN QUALIFYING UNDER SECTION 403(B) OR 401(K) OF THE CODE
IF, AT THE TIME OF PURCHASE, (I) CALVERT GROUP HAS BEEN NOTIFIED IN WRITING THAT
THE 403(B) OR 401(K) PLAN HAS AT LEAST 200 ELIGIBLE EMPLOYEES AND IS NOT
SPONSORED BY A K-12 SCHOOL DISTRICT, OR (II) THE COST OR CURRENT VALUE OF SHARES
A 401(K) PLAN HAS IN CALVERT GROUP OF FUNDS (EXCEPT MONEY MARKET FUNDS) IS AT
LEAST $1 MILLION.
NEITHER THE FUNDS, NOR CALVERT DISTRIBUTORS, INC. ("CDI"), NOR ANY AFFILIATE
THEREOF WILL REIMBURSE A PLAN OR PARTICIPANT FOR ANY SALES CHARGES PAID PRIOR TO
RECEIPT OF SUCH WRITTEN COMMUNICATION AND CONFIRMATION BY CALVERT GROUP. PLAN
ADMINISTRATORS SHOULD SEND REQUESTS FOR THE WAIVER OF SALES CHARGES BASED ON THE
ABOVE CONDITIONS TO: CALVERT GROUP RETIREMENT PLANS, 4550 MONTGOMERY AVENUE,
SUITE 1000N, BETHESDA, MARYLAND 20814.
OTHER CIRCUMSTANCES
THERE IS NO SALES CHARGE ON SHARES OF ANY FUND OF THE CALVERT GROUP OF FUNDS
SOLD TO (I) CURRENT OR RETIRED DIRECTORS, TRUSTEES, OR OFFICERS OF THE CALVERT
GROUP
<PAGE>
OF FUNDS, EMPLOYEES OF CALVERT GROUP, LTD. AND ITS AFFILIATES, OR THEIR FAMILY
MEMBERS; (II) CSIF ADVISORY COUNCIL MEMBERS, DIRECTORS, OFFICERS, AND EMPLOYEES
OF ANY SUBADVISOR FOR THE CALVERT GROUP OF FUNDS, EMPLOYEES OF BROKER/DEALERS
DISTRIBUTING THE FUND'S SHARES AND IMMEDIATE FAMILY MEMBERS OF THE COUNCIL,
SUBADVISOR, OR BROKER/DEALER; (III) PURCHASES MADE THROUGH A REGISTERED
INVESTMENT ADVISOR; (IV) TRUST DEPARTMENTS OF BANKS OR SAVINGS INSTITUTIONS FOR
TRUST CLIENTS OF SUCH BANK OR INSTITUTION; (V) PURCHASES THROUGH A BROKER
MAINTAINING AN OMNIBUS ACCOUNT WITH THE FUND, PROVIDED THE PURCHASES ARE MADE BY
(A) INVESTMENT ADVISORS OR FINANCIAL PLANNERS PLACING TRADES FOR THEIR OWN
ACCOUNTS (OR THE ACCOUNTS OF THEIR CLIENTS) AND WHO CHARGE A MANAGEMENT,
CONSULTING, OR OTHER FEE FOR THEIR SERVICES; OR (B) CLIENTS OF SUCH INVESTMENT
ADVISORS OR FINANCIAL PLANNERS WHO PLACE TRADES FOR THEIR OWN ACCOUNTS IF SUCH
ACCOUNTS ARE LINKED TO THE MASTER ACCOUNT OF SUCH INVESTMENT ADVISOR OR
FINANCIAL PLANNER ON THE BOOKS AND RECORDS OF THE BROKER OR AGENT; OR (C)
RETIREMENT AND DEFERRED COMPENSATION PLANS AND TRUSTS, INCLUDING, BUT NOT
LIMITED TO, THOSE DEFINED IN SECTION 401(A) OR SECTION 403(B) OF THE I.R.C., AND
"RABBI TRUSTS."
ESTABLISHED ACCOUNTS
SHARES OF CSIF BALANCED MAY BE SOLD AT NET ASSET VALUE TO YOU IF YOUR ACCOUNT
WAS ESTABLISHED ON OR BEFORE JULY 17, 1986.
DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS FROM OTHER CALVERT GROUP FUNDS
YOU MAY PREARRANGE TO HAVE YOUR DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS FROM
ANOTHER CALVERT GROUP FUND AUTOMATICALLY INVESTED IN ANOTHER ACCOUNT WITH NO
ADDITIONAL SALES CHARGE.
PURCHASES MADE AT NAV
EXCEPT FOR MONEY MARKET FUNDS, IF YOU MAKE A PURCHASE AT NAV, YOU MAY EXCHANGE
THAT AMOUNT TO ANOTHER CALVERT GROUP FUND AT NO ADDITIONAL SALES CHARGE.
REINSTATEMENT PRIVILEGE
IF YOU REDEEM SHARES AND THEN WITHIN 60 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.
* A "QUALIFIED GROUP" IS ONE WHICH:
1. HAS BEEN IN EXISTENCE FOR MORE THAN SIX MONTHS, AND
2. HAS A PURPOSE OTHER THAN ACQUIRING SHARES AT A DISCOUNT, AND
3. SATISFIES UNIFORM CRITERIA WHICH ENABLE CDI AND BROKERS OFFERING SHARES
TO REALIZE ECONOMIES OF SCALE IN DISTRIBUTING SUCH SHARES.
A QUALIFIED GROUP MUST HAVE MORE THAN 10 MEMBERS, MUST BE AVAILABLE TO ARRANGE
FOR GROUP MEETINGS BETWEEN REPRESENTATIVES OF CDI OR BROKERS DISTRIBUTING
SHARES, MUST AGREE TO INCLUDE SALES AND OTHER MATERIALS RELATED TO THE FUNDS IN
ITS PUBLICATIONS AND MAILINGS TO MEMBERS AT REDUCED OR NO COST TO CDI OR
BROKERS. A PENSION PLAN IS NOT A QUALIFIED GROUP FOR RIGHTS OF ACCUMULATION.
<PAGE>
EXHIBIT B
SERVICE FEES AND ARRANGEMENTS WITH DEALERS
CALVERT DISTRIBUTORS, INC., EACH FUND'S UNDERWRITER, PAYS DEALERS A COMMISSION,
OR REALLOWANCE (EXPRESSED AS A PERCENTAGE OF THE OFFERING PRICE FOR CLASS A, AND
A PERCENTAGE OF AMOUNT INVESTED FOR CLASS B AND C) WHEN YOU PURCHASE SHARES OF
NON-MONEY MARKET FUNDS. CDI ALSO PAYS DEALERS AN ONGOING SERVICE FEE WHILE YOU
OWN SHARES OF THAT FUND (EXPRESSED AS AN ANNUAL PERCENTAGE RATE OF AVERAGE DAILY
NET ASSETS HELD IN CALVERT ACCOUNTS BY THAT DEALER). THE TABLE BELOW SHOWS THE
AMOUNT OF PAYMENT WHICH DIFFERS DEPENDING ON THE CLASS.
MAXIMUM COMMISSION/SERVICE FEES
CSIF MONEY MARKET NONE/0.25%
CLASS A CLASS B* CLASS C**
CSIF BALANCED 4.00%/0.25% 4.00%/0.25% 1.00%/1.00%
CSIF BOND 3.00%/0.25% 3.00%/0.25% 1.00%/1.00%
CSIF EQUITY 4.00%/0.25% 4.00%/0.25% 1.00%/1.00%
CSIF MANAGED INDEX 4.00%/0.25% 4.00%/0.25% 1.00%/1.00%
CWVF INTERNATIONAL EQUITY 4.00%/0.25% 4.00%/0.25% 1.00%/1.00%
CAPITAL ACCUMULATION 4.00%/0.25% 4.00%/0.25% 1.00%/1.00%
NEW VISION SMALL CAP 4.00%/0.25% 4.00%/0.25% 1.00%/1.00%
*CLASS B SERVICE FEE BEGINS TO ACCRUE IN 13TH MONTH.
**CLASS C PAYS DEALERS A SERVICE FEE OF 0.25% AND ADDITIONAL COMPENSATION OF
0.75% FOR A TOTAL OF 1%. BEGINS TO ACCRUE IN 13TH MONTH.
OCCASIONALLY, CDI MAY REALLOW TO DEALERS THE FULL CLASS A FRONT-END SALES
CHARGE. CDI MAY ALSO PAY ADDITIONAL CONCESSIONS, INCLUDING NON-CASH PROMOTIONAL
INCENTIVES, SUCH AS MERCHANDISE OR TRIPS, TO BROKERS EMPLOYING REGISTERED
REPRESENTATIVES WHO HAVE SOLD OR ARE EXPECTED TO SELL A MINIMUM DOLLAR AMOUNT OF
SHARES OF THE FUNDS AND/OR SHARES OF OTHER FUNDS UNDERWRITTEN BY CDI. CDI MAY
MAKE EXPENSE REIMBURSEMENTS FOR SPECIAL TRAINING OF A BROKER'S REGISTERED
REPRESENTATIVES, ADVERTISING OR EQUIPMENT, OR TO DEFRAY THE EXPENSES OF SALES
CONTESTS. CAMCO, CDI, OR THEIR AFFILIATES MAY PAY CERTAIN BROKER-DEALERS AND/OR
OTHER PERSONS, FOR THE SALE AND DISTRIBUTION OF THE SECURITIES OR FOR SERVICES
TO THE FUND. PAYMENTS MAY INCLUDE ADDITIONAL COMPENSATION BEYOND THE REGULARLY
SCHEDULED RATES, AND FINDER'S FEES. CDI PAYS DEALERS A FINDER'S FEE ON CLASS A
SHARES PURCHASED AT NAV IN ACCOUNTS WITH $1 MILLION OR MORE (EXCLUDING CSIF
MONEY MARKET.) THE FINDER'S FEE IS 1% OF THE PURCHASE NAV AMOUNT ON THE FIRST
$2 MILLION, 0.80% ON $2 TO $3 MILLION, 0.50% ON $3 TO $50 MILLION, 0.25% ON $50
TO $100 MILLION, AND 0.15% OVER $100 MILLION. ALL PAYMENTS WILL BE IN
COMPLIANCE WITH THE RULES OF THE NATIONAL ASSOCIATION OF SECURITIES DEALERS,
INC.
<PAGE>
TO OPEN AN ACCOUNT:
800-368-2748
PERFORMANCE AND PRICES:
WWW.CALVERT.COM
CALVERT INFORMATION NETWORK
24 HOURS, 7 DAYS A WEEK
800-368-2745
SERVICE FOR EXISTING ACCOUNTS:
SHAREHOLDERS 800-368-2745
BROKERS 800-368-2746
TDD FOR HEARING-IMPAIRED:
800-541-1524
BRANCH OFFICE:
4550 MONTGOMERY AVENUE
SUITE 1000N
BETHESDA, MD 20814
REGISTERED, CERTIFIED OR
OVERNIGHT MAIL:
CALVERT GROUP
C/O NFDS
330 WEST 9TH STREET
KANSAS CITY, MO 64105
CALVERT GROUP WEB-SITE
ADDRESS: WWW.CALVERT.COM
PRINCIPAL UNDERWRITER
CALVERT DISTRIBUTORS, INC.
4550 MONTGOMERY AVENUE
SUITE 1000N
BETHESDA, MD 20814
<PAGE>
FOR INVESTORS WHO WANT MORE INFORMATION ABOUT THE FUNDS, THE FOLLOWING DOCUMENTS
ARE AVAILABLE FREE UPON REQUEST:
ANNUAL/SEMI-ANNUAL REPORTS: ADDITIONAL INFORMATION ABOUT EACH FUND'S INVESTMENTS
IS AVAILABLE IN THE FUND'S ANNUAL AND SEMI-ANNUAL REPORTS TO SHAREHOLDERS. IN
EACH FUND'S ANNUAL REPORT, YOU WILL FIND A DISCUSSION OF THE MARKET CONDITIONS
AND INVESTMENT STRATEGIES THAT SIGNIFICANTLY AFFECTED THE FUND'S PERFORMANCE
DURING ITS LAST FISCAL YEAR.
STATEMENT OF ADDITIONAL INFORMATION (SAI): THE SAI FOR EACH FUND PROVIDES MORE
DETAILED INFORMATION ABOUT THE FUND AND IS INCORPORATED INTO THIS PROSPECTUS BY
REFERENCE.
YOU CAN GET FREE COPIES OF REPORTS AND SAIS, REQUEST OTHER INFORMATION AND
DISCUSS YOUR QUESTIONS ABOUT THE FUNDS BY CONTACTING YOUR FINANCIAL
PROFESSIONAL, OR THE FUNDS AT:
CALVERT GROUP
4550 MONTGOMERY AVE.
SUITE 1000N
BETHESDA, MD 20814
TELEPHONE: 1-800-368-2745
CALVERT GROUP WEB-SITE
WWW.CALVERT.COM
YOU CAN REVIEW THE FUNDS' REPORTS AND SAIS AT THE PUBLIC REFERENCE ROOM OF THE
SECURITIES AND EXCHANGE COMMISSION. YOU CAN GET TEXT ONLY COPIES:
FOR A FEE, BY WRITING TO OR CALLING THE PUBLIC REFERENCE SECTION OF THE
COMMISSION, WASHINGTON, D.C. 20549-0102, TELEPHONE: 202-942-8090.
FREE FROM THE COMMISSION'S INTERNET WEBSITE AT HTTP://WWW.SEC.GOV.
INVESTMENT COMPANY ACT FILE:
NO.811-3334(CSIF)
NO.811- 06563(CWVF INTERNATIONAL EQUITY AND CAPITAL ACCUMULATION)
NO.811- 3416 (NEW VISION)
PRINTED ON RECYCLED PAPER USING SOY INKS
