497(e) Filing
Money Management Plus
File Numbers 811-3418
and 2-76527
PROSPECTUS --
January 31, 1996, As Revised, March 14, 1996
MONEY MANAGEMENT PLUS
Prime Portfolio
4550 Montgomery Avenue, Bethesda, Maryland 20814
INVESTMENT OBJECTIVE AND POLICIES
MONEY MANAGEMENT PLUS Prime Portfolio (the "Fund") is a money market
fund which seeks to obtain the highest level of current income,
consistent with preservation of capital and liquidity, that is available
through investments in specified money market instruments. The Fund's
assets are invested in certificates of deposit of major banks, prime
commercial paper and high-grade short-term corporate obligations, and
short-term U.S. Government and agency securities. The investments mature
in 13 months year or less, with an average weighted maturity of 90 days
or less. The Fund seeks to maintain a constant net asset value of $1.00
per share for the Fund. An investment in the Fund is neither insured nor
guaranteed by the U.S. Government. There can be no assurance that the
Fund will be successful in maintaining a constant net asset value of
$1.00 per share.
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Notwithstanding the investment objectives and policies of the Fund, it
is currently invested almost entirely in U.S. Government securities in
order to meet diversification requirements. Further, due to the Fund's
relatively small asset size, its fund operating expenses are relatively
high compared to other money market funds. For this reason, the Fund's
Board of Trustees has concurred with the Advisor's recommendation that
the Fund be liquidated in the next few months, by June 28, 1996.
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TO OPEN AN ACCOUNT
The Fund is not accepting new accounts at this time.
ABOUT THIS PROSPECTUS
Please read this Prospectus before investing. It is designed to provide
you with information you ought to know before investing and to help you
decide if the Fund's goals match your own. Keep this document for future
reference.
A Statement of Additional Information (dated January 31, 1996) for the
Fund has been filed with the Securities and Exchange Commission and is
incorporated by reference. This free Statement is available upon request
from the Fund: 800-368-2748.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE
FEDERAL OR ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR
ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
SHARES OF THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR
ENDORSED BY, ANY BANK, AND ARE NOT FEDERALLY INSURED BY THE FDIC, THE
FEDERAL RESERVE BOARD, OR ANY OTHER AGENCY.
<PAGE>
FUND EXPENSES
A. Shareholder Transaction Expenses Prime Portfolio
Sales Load on Purchases None
Sales Load on Reinvested Dividends None
Deferred Sales Load None
Redemption Fees None
Exchange Fee None
B. Annual Fund Operating Expenses (as a
percentage of average net assets)
Management Fees 0.50%
Rule 12b-1 Fees 0.35%
Other Expenses 0.62%
Total Fund Operating Expenses 1.47%
C. Example: You would pay the following expenses on a $1,000
investment, assuming (1) 5% annual return;(2) redemption at the end of
each period:
1 Year 3 Years 5 Years 10 Years
$15 $46 $80 $176
The example, which is hypothetical, should not be considered a
representation of past or future expenses. Actual expenses may be higher
or lower than those shown.
Explanation of Table: The purpose of the table is to assist you in
understanding the various costs and expenses that an investor in the
Fund may bear directly (shareholder transaction costs) or indirectly
(annual fund operating expenses).
A. Shareholder Transaction Expenses are charges you pay when you
buy or sell shares of the Funds. If you request a wire redemption of
less than $1,000, you will be charged a $5 wire fee.
B. Annual Fund Operating Expenses are based on the Fund's
historical expenses, although Management Fees have been restated to
reflect expenses anticipated in the current fiscal year. Management Fees
are paid by the Fund to Calvert Asset Management Company, Inc.
("Advisor") for managing its investments and business affairs. The Fund
incurs Other Expenses for maintaining shareholder records, furnishing
shareholder statements and reports, and other services. Management Fees
and Other Expenses have already been reflected in the Fund's yield and are
not charged directly to individual shareholder accounts. Please refer to
the section "Management of the Fund" for further information.
The Fund's Rule 12b-1 fees include an asset-based sales charge.
Thus, long-term shareholders in the Fund could pay more than the
economic equivalent of the maximum front-end sales charge permitted by
rules of the National Association of Securities Dealers, Inc.; however,
this is unlikely because these are money market funds, and have no
front-end sales charge.
FINANCIAL HIGHLIGHTS
The following table provides information about the Fund's financial
history. It expresses the information in terms of a single share
outstanding throughout each period. The table has been audited by those
independent accountants whose reports are included in the respective
Annual Reports to Shareholders. The table should be read in conjunction
with the financial statements and their related notes. The current
Annual Report to Shareholders is incorporated by reference into the
Statement of Additional Information.
Class A Shares
Year Ended
September 30, 1995
Net asset value, beginning of year $1.00
Income from investment operations
Net investment income .045
Distributions from
Net investment income (.045)
Net asset value, end of year $1.00
Total return<F4> 4.55%
Ratio to average net assets:
Net investment income 4.53%
Total expenses<F5> 1.41%
Net expenses 1.39%
Expenses reimbursed and/or waived --
Net assets, end of year (in thousands) $26,775
Number of shares outstanding
at end of year (in thousands) 26,821
<F4>Total return prior to 1994 is not audited.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
were included in the ratio.
Class A Shares
Year Ended
September 30, 1994
Net asset value, beginning of year $1.00
Income from investment operations
Net investment income .028
Distributions from
Net investment income (.028)
Net asset value, end of year $1.00
Total return<F4> 2.78%
Ratio to average net assets:
Net investment income 2.75%
Total expenses<F5> --
Net expenses 1.23%
Expenses reimbursed and/or waived --
Net assets, end of year (in thousands) $99,973
Number of shares outstanding
at end of year (in thousands) 100,024
<F4>Total return prior to 1994 is not audited.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
were included in the ratio.
Class A Shares
Year Ended
September 30, 1993
Net asset value, beginning of year $1.00
Income from investment operations
Net investment income .025
Distributions from
Net investment income (.025)
Net asset value, end of year $1.00
Total return<F4> 2.59%
Ratio to average net assets:
Net investment income 2.48%
Total expenses<F5> --
Net expenses .92%
Expenses reimbursed and/or waived --%
Net assets, end of year (in thousands) $102,325
Number of shares outstanding
at end of year (in thousands) 102,370
<F4>Total return prior to 1994 is not audited.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
were included in the ratio.
Class A Shares
Year Ended
September 30, 1992
Net asset value, beginning of year $1.00
Income from investment operations
Net investment income .037
Distributions from
Net investment income (.037)
Net asset value, end of year $1.00
Total return<F4> 3.72%
Ratio to average net assets:
Net investment income 3.69%
Total expenses<F5> --
Net expenses .87%
Expenses reimbursed and/or waived --
Net assets, end of year (in thousands) $106,851
Number of shares outstanding
at end of year (in thousands) 106,897
<F4>Total return prior to 1994 is not audited.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
were included in the ratio.
Class A Shares
Year Ended
September 30, 1991
Net asset value, beginning of year $1.00
Income from investment operations
Net investment income .061
Distributions from
Net investment income (.061)
Net asset value, end of year $1.00
Total return<F4> 6.27%
Ratio to average net assets:
Net investment income 6.09%
Total expenses<F5> --
Net expenses .93%
Expenses reimbursed and/or waived --
Net assets, end of year (in thousands) $119,316
Number of shares outstanding
at end of year (in thousands) 119,362
<F4>Total return prior to 1994 is not audited.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
were included in the ratio.
Class A Shares
Year Ended
September 30, 1990
Net asset value, beginning of year $1.00
Income from investment operations
Net investment income .074
Distributions from
Net investment income (.074)
Net asset value, end of year $1.00
Total return<F4> 7.71%
Ratio to average net assets:
Net investment income 7.45%
Total expenses<F5> --
Net expenses .96%
Expenses reimbursed and/or waived .13%
Net assets, end of year (in thousands) $117,684
Number of shares outstanding
at end of year (in thousands) 117,699
<F4>Total return prior to 1994 is not audited.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
were included in the ratio.
Class A Shares
Year Ended
September 30, 1989
Net asset value, beginning of year $1.00
Income from investment operations
Net investment income .083
Distributions from
Net investment income (.083)
Net asset value, end of year $1.00
Total return<F4> 8.69%
Ratio to average net assets:
Net investment income 8.27%
Total expenses<F5> --
Net expenses .91%
Expenses reimbursed and/or waived .12%
Net assets, end of year (in thousands) $156,777
Number of shares outstanding
at end of year (in thousands) 156,797
<F4>Total return prior to 1994 is not audited.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
were included in the ratio.
Class A Shares
Year Ended
September 30, 1988
Net asset value, beginning of year $1.00
Income from investment operations
Net investment income .067
Distributions from
Net investment income (.067)
Net asset value, end of year $1.00
Total return<F4> 6.99%
Ratio to average net assets:
Net investment income 6.44%
Total expenses<F5> --
Net expenses .86%
Expenses reimbursed and/or waived .25%
Net assets, end of year (in thousands) $91,640
Number of shares outstanding
at end of year (in thousands) 91,660
<F4>Total return prior to 1994 is not audited.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
were included in the ratio.
Class A Shares
Year Ended
September 30, 1987
Net asset value, beginning of year $1.00
Income from investment operations
Net investment income .057
Distributions from
Net investment income (.057)
Net asset value, end of year $1.00
Total return<F4> 6.07%
Ratio to average net assets:
Net investment income 5.56%
Total expenses<F5> --
Net expenses .85%
Expenses reimbursed and/or waived .26%
Net assets, end of year (in thousands) $63,134
Number of shares outstanding
at end of year (in thousands) 63,138
<F4>Total return prior to 1994 is not audited.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
were included in the ratio.
Class A Shares
Year Ended
September 30, 1986
Net asset value, beginning of year $1.00
Income from investment operations
Net investment income .067
Distributions from
Net investment income (.067)
Net asset value, end of year $1.00
Total return<F4> 6.16%
Ratio to average net assets:
Net investment income 6.47%
Total expenses<F5> --
Net expenses .85%
Expenses reimbursed and/or waived .51%
Net assets, end of year (in thousands) $52,807
Number of shares outstanding
at end of year (in thousands) 52,807
<F4>Total return prior to 1994 is not audited.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
were included in the ratio.
INVESTMENT OBJECTIVE AND POLICIES
Investment Objective: The Fund seeks to earn the highest level of
current income, consistent with preservation of capital and liquidity.
Money Management Plus Prime Portfolio is a diversified money market
fund. Its objective is to earn the highest level of current income,
consistent with preservation of capital and liquidity, that is available
through investment in specified money market instruments. The Fund's
assets are invested in securities maturing in 13 months or less, and it
maintains an average weighted maturity of 90 days or less.
Prime Portfolio invests primarily in CDs, prime commercial paper, and
U.S. Government Obligations.
Prime Portfolio invests in certificates of deposit and other obligations
of banks having total assets of at least $1 billion, prime commercial
paper and high grade (Aaa or Aa rated or equivalent quality) short-term
corporate obligations, including participation interests in loans
extended to issuers of such obligations, and obligations of the U.S.
Government, its agencies and instrumentalities. Such securities may be
purchased subject to repurchase agreements with recognized securities
dealers and banks. The Fund may invest more than 25% of its assets in
obligations of banks. See the Statement of Additional Information,
"Appendix, Commercial Paper and Bond Ratings." Also, the Fund may invest
in high-quality, U.S. dollar-denominated international money market
instruments, and up to 5% of its assets in reverse repurchase agreements.
U.S. Government Obligations
Obligations issued by the U.S. Treasury, such as U.S. Treasury bills,
notes and bonds, are supported by the full faith and credit of the U.S.
Government.
Certain obligations issued or guaranteed by a U.S. Government agency or
instrumentality are supported by the full faith and credit of the U.S.
Government. These include obligations issued by the Export-Import Bank,
Farmers Home Administration, Government National Mortgage Association,
Postal Service, Merchant Marine, and Washington Metropolitan Area
Transit Authority.
The Fund may also invest in other U.S. Government agency or
instrumentality obligations which are supported only by the credit of
the agency or instrumentality and may be further supported by the right
of the issuer to borrow from the U.S. Treasury.
Repurchase Agreements
The Fund may enter into repurchase agreements. In a repurchase
agreement, the Fund buys a security subject to the right and obligation
to sell it back at a higher price. These transactions must be fully
secured at all times, but they involve some credit risk to the Fund if
the other party defaults on its obligation and the Fund is delayed or
prevented from liquidating the collateral.
Reverse Repurchase Agreements
The Fund may engage in reverse repurchase agreements. In a reverse
repurchase agreement, the Fund sells a security subject to the right and
obligation to buy it back at a higher price. The Fund then invests the
proceeds from the transaction in another obligation in which it is
authorized to invest. In order to minimize any risk involved, the Fund
maintains in a segregated account liquid assets equal in value to the
repurchase price, and currently intends to limit its borrowing due to
reverse repurchase agreements to only 5% of total assets.
Bank CDs
The Fund may also invest in certificates of deposit and other debt
obligations of commercial banks, savings banks, and savings and loan
associations having assets of less than $1 billion, provided that the
principal amount of such certificate is insured in full by the Federal
Deposit Insurance Corporation ("FDIC"). The FDIC presently insures
accounts up to $100,000; interest earned above $100,000 is not insured
by the FDIC.
When-Issued Purchases
Purchasing obligations for future delivery or on a "when-issued" basis
may increase the Fund's overall investment exposure and involves a risk
of loss if the value of the securities declines prior to the settlement
date. The transactions are fully secured at all times.
Variable Rate Obligations
The Fund may invest in variable and floating rate obligations. Variable
rate obligations have a yield which is adjusted periodically based upon
changes in the level of prevailing interest rates. Floating rate
obligations have an interest rate fixed to a known lending rate, such as
the prime rate, and are automatically adjusted when that rate changes.
Variable and floating rate obligations lessen the capital fluctuations
usually inherent in fixed income investments, to diminish the risk of
capital depreciation of Fund investments and Fund shares; but this also
means that should interest rates decline, the yield of the Fund will
decline and the Fund would not have as many opportunities for capital
appreciation of Fund investments.
Demand Notes and Temporary Investments
The Fund may invest in floating rate and variable rate demand notes.
Demand notes provide that the holder may demand payment of the note at
its par value plus accrued interest by giving notice to the issuer. To
ensure the ability of the issuer to make payment upon such demand, the
note may be supported by an unconditional bank letter of credit.
The Fund may invest in structured money market instruments. In all
cases, the Fund may invest in structured money market instruments. In
all cases, it invests only in high-quality instruments (rated in one of
the two highest rating categories, or if unrated, of comparable credit
quality) that meet the requirements of SEC Rule 2a-7 regarding credit
quality and maturity. See the Statement of Additional Information.
Other Policies
The Fund has adopted certain fundamental investment restrictions which
are discussed in detail in the Statement of Additional Information.
Unless specifically noted otherwise, the investment objective, policies
and restrictions of the Fund are fundamental and may not be changed
without shareholder approval. There can be no assurance that the Fund
will be successful in meeting its investment objective.
YIELD
Yield refers to income generated by an investment over a period of time.
From time to time, the Fund may advertise "yield" and "effective yield."
Yield figures are based on historical earnings and are not intended to
indicate future performance. The "yield" refers to the actual income
generated by an investment in the Fund over a particular base period,
stated in the advertisement. If the base period is less than one year,
the yield will be "annualized." That is, the amount of income generated
by the investment during the base period is assumed to be generated over
a one-year period and is shown as a percentage of the investment. The
"effective yield" is calculated similarly, but, when annualized, the
income earned by an investment in the Fund is assumed to be reinvested.
The "effective yield" will be slightly higher than the "yield" because
of the compounding effect of this assumed reinvestment.
MANAGEMENT OF THE FUND
The Board of Trustees supervises the activities and reviews its
contracts with companies that provide the Fund with services.
The Fund is the only series of Calvert Cash Reserves, a Massachusetts
business trust organized on March 16, 1982, now doing business as Money
Management Plus. In October, 1992, Prime Portfolio began offering a
second class of shares, the CCR Prime Shares, which was discontinued
during 1994.
The Fund is an open-end diversified management investment company. The
Fund is not required to hold annual shareholder meetings, but special
meetings may be called for certain purposes such as electing Trustees,
changing fundamental policies, or approving a management contract. As a
shareholder, you receive one vote for each share you own.
Calvert Group is one of the largest investment management firms in the
Washington, D.C. area.
Calvert Group, Ltd., parent of the Funds' investment advisor, transfer
agent, and distributor, is a subsidiary of Acacia Mutual Life Insurance
Company of Washington, D.C. Calvert Group is one of the largest
investment management firms in the Washington, D.C. area. Calvert Group,
Ltd. and its subsidiaries are located at 4550 Montgomery Avenue, Suite
1000N, Bethesda, Maryland 20814. As of December 31, 1995, Calvert Group
managed and administered assets in excess of $4.8 billion and more than
200,000 shareholder and depositor accounts.
Calvert Asset Management serves as Advisor to the Funds.
Calvert Asset Management Company, Inc. (the "Advisor") is the Fund's
investment advisor. The Advisor provides the Fund with investment
supervision and management; administrative services and office space;
furnishes executive and other personnel to the Fund; and pays the
salaries and fees of all Trustees who are affiliated persons of the
Advisor. The Advisor may also assume and pay certain advertising and
promotional expenses of the Fund and reserves the right to compensate
broker-dealers in return for their promotional or administrative
services. The Advisor has agreed to limit the Fund's expenses to the
most restrictive state limitation in effect.
The Advisor receives a fee based on a percentage of the Fund's assets.
Pursuant to the Investment Advisory Agreement, the Advisor is entitled
to, and did receive for fiscal 1995, an annual advisory fee of 0.50% of
the Fund's respective average daily net assets.
Calvert Distributors, Inc. serves as underwriter to market the Fund's
shares.
Calvert Distributors, Inc. ("CDI") is the Funds' principal underwriter
and distributor. Under the terms of its underwriting agreement with the
Funds, CDI markets and distributes the Fund's shares and is responsible
for payment of compensation and service fees to broker-dealers, banks,
and financial services firms, preparation of advertising and sales
literature, and printing and mailing of prospectuses to prospective
investors.
The Fund may pay distribution and servicing expenses pursuant to their
Distribution Plan.
Pursuant to Rule 12b-1 under the Investment Company Act of 1940, the
Fund has adopted a Distribution Plan which permits it to pay certain
expenses associated with the distribution of its shares. Amounts paid by
the Fund to the Distributor under the Distribution Plan are used to pay
dealers and other selling firms dealer-paid quarterly compensation at an
annual rate of up to 0.40% of the average daily net assets of accounts
the respective firms maintain in the Fund. They are also used to pay
dealers and others, including the Distributor's salespersons who service
accounts, service fees at an annual rate of up to 0.25% of such assets,
and to pay CDI for its marketing and distribution expenses, preparation
of advertising and sales literature, printing and mailing of
prospectuses to prospective investors. The Distribution Plan expenses
may not annually exceed 0.35% of the average daily net assets of any
Fund. For fiscal year 1995, the Fund paid Distribution Plan expenses of
0.35 of average daily net assets.
CDI may also pay additional concessions, including non-cash promotional
incentives, such as merchandise or trips, to dealers employing
registered representatives who sell a minimum dollar amount of shares of
the Fund and/or shares of other Funds underwritten by CDI. CDI may make
expense reimbursements for special training of a dealer's registered
representatives, advertising or equipment, or to defray the expenses of
sales contests. CDI may receive reimbursement of eligible marketing and
distribution expenses from the Fund's Rule 12b-1 Distribution Plan.
The Distribution Plan may be terminated at any time by vote of the
Independent Trustees or by vote of a majority of the outstanding voting
shares of the respective Fund.
The transfer agent keeps your account records.
Calvert Shareholder Services, Inc. is the Fund's transfer, dividend
disbursing and shareholder servicing agent.
SHAREHOLDER GUIDE
Opening An Account
The Fund is not accepting new accounts at this time.
Share Price
The Fund's shares are sold without a sales charge.
The price of one share is its "net asset value," or NAV. NAV is computed
by adding the value of a Fund's investments plus cash and other assets,
deducting liabilities and then dividing the result by the number of
shares outstanding. The NAV is calculated at the close of the Fund's
business day, which coincides with the closing of the regular session of
the New York Stock Exchange (normally 4:00 p.m. Eastern time). The Fund
is open for business each day the New York Stock Exchange is open. The
Fund's securities are valued according to the "amortized cost" method,
which is intended to stabilize the NAV at $1.00 per share.
All purchases of Fund shares will be confirmed and credited to your
account in full and fractional shares (rounded to the nearest 1/100 of a
share). The Fund may send monthly statements in lieu of immediate
confirmations of purchases and redemptions.
HOW TO BUY SHARES
NO INVESTMENTS WILL BE ACCEPTED AFTER JUNE 15, 1996
Method Additional Investments
Investments
By Mail $250 minimum
Please make your check payable to the Fund and mail
it with your investment slip to:
Calvert Group
P.O. Box 419739
Kansas City, MO
64105-6739
By Registered, Certified, or Overnight Mail:
Calvert Group
c/o NFDS, 6th Floor
1004 Baltimore
Kansas City, MO 64105-1807
Through Your Broker $250 minimum
FOR ALL OPTIONS BELOW, PLEASE CALL YOUR BROKER, OR CALVERT GROUP AT
800-368-2745
By Exchange $250 minimum
(From your account in another Calvert Group Fund)
By Bank Wire $250 minimum
By Calvert Money $50 minimum
Controller*
*Please allow sufficient time for Calvert Group to process your initial
request for this service, normally 10 business days. The maximum
transaction amount is $300,000, and your purchase request must be
received by 4:00 p.m. Eastern time.
WHEN YOUR ACCOUNT WILL BE CREDITED
Before you buy shares, please read the following information to make
sure your investment is accepted and credited properly.
Your purchase will be processed at the net asset value calculated after
your order is received and accepted. Except in the case of telephone
orders, investors whose payments are received in or converted into
federal funds by 12:30 p.m. Eastern time by the custodian will receive
the dividend declared that day. If your wire purchase is received after
12:30 p.m. Eastern time, your account will begin earning dividends on
the next business day. A telephone order placed to Calvert Institutional
Marketing Services by 12:30 p.m. Eastern time will become effective at
the price determined at 5 p.m. Eastern time and the shares purchased
will receive the dividend on Fund shares declared that day if federal
funds are received by the custodian by 5 p.m. Eastern time. Exchanges
begin earning dividends the next business day after the exchange request
is received by mail or telephone. If the purchase is by check and is
received by 4:00 p.m. Eastern time, it will begin earning dividends the
next business day.
All of your purchases must be made in U.S. dollars and checks must be
drawn on U.S. banks. No cash will be accepted. The Fund reserves the
right to suspend the offering of shares for a period of time or to
reject any specific purchase order. If your check does not clear, your
purchase will be cancelled and you will be charged a $10 fee plus costs
incurred by the Fund. When you purchase by check or with Calvert Money
Controller, those funds will be on hold for up to 10 business days from
the date of receipt. During that period, redemptions against those funds
(including drafts) will not be honored. To avoid this collection period,
you can wire federal funds from your bank, which may charge you a fee.
EXCHANGES
You may exchange shares of the Fund for shares of other Calvert Group
Funds.
If your investment goals change, the Calvert Group Family of Funds has a
variety of investment alternatives that includes common stock funds,
tax-exempt and corporate bond funds, and money market funds. The
exchange privilege is a convenient way to buy shares in other Calvert
Group Funds in order to respond to changes in your goals or in market
conditions. Before you make an exchange from a Fund or Portfolio, please
note the following:
Call your broker or a Calvert representative for information
and a prospectus for any of Calvert's other Funds registered in your
state. Read the prospectus of the Fund or Portfolio into which you want
to exchange for relevant information, including class offerings.
Each exchange represents the sale of shares of one Fund and the purchase
of shares of another.
Complete and sign an application for an account in that Fund or
Fund, taking care to register your new account in the same name and
taxpayer identification number as your existing Calvert account(s).
Exchange instructions may then be given by telephone if telephone
redemptions have been authorized and the shares are not in certificate
form.
Shares on which you have already paid a sales charge at Calvert
Group may be exchanged into another Fund at no additional charge. Shares
acquired by reinvestment of dividends or distributions may be exchanged
into another Fund at no additional charge. Except for money market
funds, if you make a purchase at NAV, you may exchange that amount to
another fund at no additional sales charge.
The Fund reserves the right to terminate or modify the exchange
privilege with 60 days written notice. The Fund is not opening new accounts
by Exchange at this time.
OTHER CALVERT GROUP SERVICES
Calvert Information Network
24 hour performance and prices
Calvert Group has a round-the-clock telephone service that lets existing
customers use a push button phone to obtain prices, performance
information, and account balances. Complete instructions for this
service may be found on the back of each statement.
Calvert Money Controller
Calvert Money Controller eliminates the delay of mailing a check or the
expense of wiring funds. You can request this free service on your
application.
This service allows you to authorize electronic transfers of money to
purchase or sell shares. You use Calvert Money Controller like an
"electronic check" to move money ($50 to $300,000) between your bank
account and your Calvert Group account with one phone call. Allow one or
two business days after the call for the transfer to take place; for
money recently invested, allow normal check clearing time (up to 10
business days) before redemption proceeds are sent to your bank.
You may also arrange systematic monthly or quarterly investments
(minimum $50) into your Calvert Group account. After you give us proper
authorization, your bank account will be debited to purchase Fund
shares. A debit entry will appear on your bank statement. If you would
like to make arrangements for systematic monthly or quarterly
redemptions from your Calvert Group account, call your broker or Calvert
for a Money Controller Application. All automatic transactions will be
discontinued, effective May 31, 1996.
Telephone Transactions
Calvert may record all telephone calls.
If you have telephone transaction privileges, you may purchase, redeem,
or exchange shares, wire funds and use Calvert Money Controller by
telephone. You automatically have telephone privileges unless you elect
otherwise. The Fund, the transfer agent and their affiliates are not
liable for acting in good faith on telephone instructions relating to
your account, so long as they follow reasonable procedures to determine
that the telephone instructions are genuine. Such procedures may include
recording the telephone calls and requiring some form of personal
identification. You should verify the accuracy of telephone transactions
immediately upon receipt of your confirmation statement.
Complete the account application for the easiest way to establish
services.
The easiest way to establish optional services on your Calvert Group
account is to select the options you desire when you complete your
account application. If you wish to add other options later, you may
have to provide us with additional information and a signature
guarantee. Please call your broker or Calvert Investor Relations at
800-368-2745 for further assistance. For our mutual protection, we may
require a signature guarantee on certain written transaction requests. A
signature guarantee verifies the authenticity of your signature, and may
be obtained from any bank, savings and loan association, credit union,
trust company, broker-dealer firm or member of a domestic stock
exchange. A signature guarantee cannot be provided by a notary public.
Householding of General Mailings
Householding reduces Fund expenses and saves paper and trees for the
environment.
If you have multiple accounts with Calvert, you may receive combined
mailings of some shareholder information, such as semi-annual and annual
reports. Please contact Calvert Investor Relations at 800-368-2745 to
receive additional copies of information.
Special Services and Charges
The Fund pays for shareholder services but not for special services that
are required by a few shareholders, such as a request for a historical
transcript of an account. You may be required to pay a research fee for
these special services.
If you are purchasing shares of the Fund through a program of services
offered by a securities dealer or financial institution, you should read
the program materials in conjunction with this Prospectus. Certain
features of the Fund may be modified in these programs, and
administrative charges may be imposed by the broker-dealer for the
services rendered.
Tax-Saving Retirement Plans
Individual retirement accounts (IRAs): available to anyone who
has earned income. You may also be able to make investments in the name
of your spouse, if your spouse has no earned income.
Qualified Profit-Sharing and Money-Purchase Plans (including
401(k) Plans): available to self-employed people and their partners, or
to corporations and their employees.
Simplified Employee Pension Plan (SEP-IRA): available to
self-employed people and their partners, or to corporations. Salary
reduction pension plans (SAR-SEP IRAs) are also available to employers
with 25 or fewer employees.
403(b)(7) Custodial Accounts: available to employees of most
non-profit organizations and public schools and universities.
Consolidated Asset Account ("CAA")
Certain brokerage firms may offer their customers CAA, a special cash
management service linked to one of the Fund's Funds. CAA customers may
have free-credit cash balances at their brokerage firm account
automatically invested in Fund shares on a daily basis. Participating
brokerage firms will charge their customers a fee for the CAA program
and may establish a higher minimum balance. Details of CAA, including
the fee charged, are available from participating brokerage firms. This
prospectus should be read together with such firm's materials regarding
these fees and services.
SELLING YOUR SHARES
You may redeem all or a portion of your shares on any business day. Your
shares will be redeemed at the next net asset value calculated after
your redemption request is received and accepted. See the chart below
for specific requirements necessary to make sure your redemption request
is acceptable. Remember that the Fund may hold payment on the redemption
of your shares until it is reasonably satisfied that investments made by
check or by Calvert Money Controller have been collected (normally up to
10 business days).
Redemption Requirements To Remember
To ensure acceptance of your redemption request, please follow the procedures
described here and below.
Once your shares are redeemed, the proceeds will normally be sent to you
on the next business day, but if making immediate payment could
adversely affect the Fund, it may take up to seven (7) days. Calvert
Money Controller redemptions generally will be credited to your bank
account on the second business day after your phone call. When the New
York Stock Exchange is closed (or when trading is restricted) for any
reason other than its customary weekend or holiday closings, or under
any emergency circumstances as determined by the Securities and Exchange
Commission, redemptions may be suspended or payment dates postponed.
If you sell shares by telephone or written request, you will receive
dividends through the date the request is received and processed. If you
write a draft to sell shares, the shares will earn dividends until the
draft is presented to the Fund to be paid.
Minimum account balance
Please maintain a balance in your account of at least $1,000. If, due to
redemptions, the account falls below $1,000, or you fail to invest at
least $1,000, it may be closed and the proceeds mailed to you at the
address of record. You will be given notice that your account will be
closed after 30 days unless you make an additional investment to
increase your account balance to the $1,000 minimum. The Board of Trustees
has approved a $1,000,000 minimum balance per account, effective May 15, 1996.
HOW TO SELL YOUR SHARES
Draftwriting
You may redeem shares in your account by writing a draft for at least
$250. If you complete and return the signature card for Draftwriting,
the Fund will mail bank drafts to you, printed with your name and
address. Generally, there is no charge to you for the maintenance of
this service or the clearance of drafts, but the Fund reserves the right
to charge a service fee for drafts returned for uncollected or
insufficient funds. The Fund will charge $25 for any stop payments on
drafts. As a service to shareholders, the Fund may automatically
transfer the dollar amount necessary to cover drafts you have written on
the Fund to your Fund account from any other of your identically
registered accounts in Calvert money market funds or Calvert Insured
Plus. The Fund may charge a fee for this service.
By Mail To:
Calvert Group
P.O. Box 419544
Kansas City, MO
64179-6542
You may redeem available shares from your account at any time by sending
a letter of instruction, including your name, account and Fund number,
the number of shares or dollar amount, and where you want the money to
be sent. Additional requirements, below, may apply to your account. The
letter of instruction must be signed by all required authorized signers.
If you want the money to be wired to a bank not previously authorized,
then a voided bank check must be enclosed with your letter. If you do
not have a voided check or if you would like funds sent to a different
address or another person, your letter must be signature guaranteed.
Type of Registration Requirements
Corporations, Associations Letter of instruction and a corporate
resolution, signed by person(s)
authorized to act on the account,
accompanied by signature guarantee(s).
Trusts Letter of instruction signed by the
Trustee(s) (as Trustee), with
a signature guarantee. (If the Trustee's
name is not registered on your account,
provide a copy of the trust
document, certified within the last
60 days.)
By Telephone
Please call 800-368-2745. You may redeem shares from your account by
telephone and have your money mailed to your address of record or wired
to an address or bank you have previously authorized. A charge of $5 is
imposed on wire transfers of less than $1,000. See "Telephone
Transactions."
Calvert Money Controller
Please allow sufficient time for Calvert Group to process your initial
request for this service (normally 10 business days). You may also
authorize automatic fixed amount redemptions by Calvert Money
Controller. All requests must be received by 4:00 p.m. Eastern time.
Accounts cannot be closed by this service. All automatic transactions will be
discontinued, effective May 31, 1996.
Exchange to Another Calvert Group Fund
You must meet the minimum investment requirement of the other Calvert
Group Fund or Fund. You can only exchange between accounts with
identical names, addresses and taxpayer identification number, unless
previously authorized with a signature-guaranteed letter.
Systematic Check Redemptions
If you maintain an account with a balance of $10,000 or more, you may
have up to two (2) regular redemption checks for a fixed amount sent to
you on the 15th of each month, simply by sending a letter with all
information, including your account number, and the dollar amount ($100
minimum). If you would like a regular check mailed to another person or
place, your letter must be signature guaranteed. All automatic transactions
will be discontinued, effective May 31, 1996.
Through your Broker
If your account is held in your broker's name ("street name"), you
should contact your broker directly to transfer, exchange or redeem
shares.
DIVIDENDS AND TAXES
Each year, the Fund distributes substantially all of its net investment
income to shareholders.
Dividends from the Fund's net investment income are declared daily and
paid monthly. Net investment income consists of interest income, net
short-term capital gains, if any, and dividends declared and paid on
investments, less expenses.
Dividend payment options
Dividends and any distributions are automatically reinvested in
additional shares of the same Fund, unless you elect to have the
dividends of $10 or more paid in cash (by check or by Calvert Money
Controller). Dividends and distributions from the Funds may be invested
in shares of any other Calvert Group Fund or Fund with no additional
sales charge. 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 U.S. Postal Service cannot deliver the check, or if it
remains uncashed for six months, it, as well as future dividends and
distributions, will be reinvested in additional shares.
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
by the Fund during the past year. Dividends and distributions are
taxable to you regardless of whether they are taken in cash or
reinvested. Dividends, including short-term capital gains, are taxable
as ordinary income. Distributions from long-term capital gains are
taxable as long-term capital gains, regardless of how long you have
owned Fund shares. A portion of the Fund's dividends may qualify for the
dividends received deduction for corporations.
Other Tax Information
In addition to federal taxes, you may be subject to state or local taxes
on your investment, depending on the laws in your area. You will be
notified to the extent, if any, that dividends reflect interest received
from U.S. government securities. Such dividends may be exempt from
certain state income taxes.
Taxpayer Identification Number
If we do not have your correct Social Security or Taxpayer
Identification Number ("TIN") and a signed certified application or Form
W-9, Federal law requires the Fund to withhold 31% of your dividends. In
addition, you may be subject to a fine. You will also be prohibited from
opening another account by exchange. If this TIN information is not
received within 60 days after your account is established, your account
may be redeemed at the current NAV on the date of redemption. The Fund
reserves the right to reject any new account or any purchase order for
failure to supply a certified TIN.
To Open an Account: Prospectus
800-368-2748 January 31, 1996
As Revised, March 14, 1996
Performance and Prices:
Calvert Information Network MONEY MANAGEMENT PLUS
24 hours, 7 days a week Prime Portfolio
800-368-2745
Service for Existing Account:
Shareholders 800-368-2745
Brokers 800-368-2746
TDD for Hearing Impaired:
800-541-1524
PRINCIPAL UNDERWRITER
Calvert Distributors, Inc.
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
Table of Contents
Fund Expenses
Financial Highlights
Investment Objective and Policies
Yield
Management of the Fund
SHAREHOLDER GUIDE:
How to Buy Shares
When Your Account Will Be Credited
Exchanges
Other Calvert Group Services
Selling Your Shares
How to Sell Your Shares
Dividends and Taxes
