PROSPECTUS
January 31, 1996 As Revised June 1, 1996
CALVERT WORLD VALUES FUND, INC.
INTERNATIONAL EQUITY FUND
4550 Montgomery Avenue, Bethesda, Maryland 20814
INVESTMENT OBJECTIVE
The investment objective of Calvert World Values Fund, Inc., International
Equity Fund (the "Fund") is to achieve a high total return consistent
with reasonable risk, by investing primarily in a globally diversified
portfolio of equity securities. To the extent possible, investments are
made in enterprises that make a significant contribution to our global
society through their products and services and through the way they do
business. In particular, the Fund intends to invest a part of its assets
in companies with strong interest in the environment, human rights and
health care. Investments must satisfy both the financial and social
criteria of the Fund.
PURCHASE INFORMATION
The Fund offers two classes of shares, each with different expense
levels and sales charges. You may choose to purchase (i) Class A shares,
with a sales charge imposed at the time you purchase the shares
("front-end sales charge"); or (ii) Class C shares which impose neither
a front-end sales charge nor a contingent deferred sales charge. Class C
shares are not available through all dealers. Class C shares have a
higher level of expenses than Class A shares, including higher Rule
12b-1 fees. These alternatives permit you to choose the method of
purchasing shares that is most beneficial to you, depending on the
amount of the purchase, the length of time you expect to hold the
shares, and other circumstances. See "Alternative Sales Options" for
further details.
ADVISORS
Calvert Asset Management Company, Inc. is the Fund's Advisor,
responsible for overall management and supervision of the Fund's
investment and day-to-day management. Murray Johnstone International,
Ltd. is the Fund's Sub-Advisor, responsible for asset allocation and
selection of the specific investments for the Fund. See "Management of
the Fund."
TO OPEN AN ACCOUNT
Call your broker, or complete and return the enclosed Account
Application. Minimum initial investment is $2,000 (may be lower for
certain retirement plans).
ABOUT THIS PROSPECTUS
Please read this Prospectus 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, as revised
June 1, 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
COMMISSION 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. WHEN INVESTORS SELL SHARES
OF THE FUND, THE VALUE MAY BE HIGHER OR LOWER THAN THE AMOUNT ORIGINALLY
PAID.
FUND EXPENSES
A. Shareholder Transaction Costs Class A Class C
Maximum Front-End Sales Charge on 4.75% None
Purchases (as a percentage of offering
price)
Contingent Deferred Sales Charge None None
B. Annual Fund Operating Expenses - Fiscal
Year 1995
(as a percentage of average net assets,
after expense reimbursement/fee waiver)
Management Fees 1.10% 1.10%
Rule 12b-1 Service and Distribution Fees
0.25% 1.00%
Other Expenses 0.58% 1.02%
Total Fund Operating Expenses<F1> 1.93% 3.12%
C. Example: You would pay the following expenses on a $1,000
investment, assuming (1) 5% annual return; (2)
redem period; and (3) for Class A, payment of
maximum initial sales charge at time of purchase:
1 Year 3 Years 5 Years 10 Years
Class A $66 $105 $147 $262
Class C $31 $96 $164 $343
<F1> Net Fund Operating Expenses after reduction for fees paid indirectly
were: Class A 1.79% and Class C 2.99%.
The example, which is hypothetical, should not be considered a
representation of past or future expenses. Actual expenses and return
may be higher or lower than those shown.
Explanation of Table: The purpose of the table is to assist you in
understanding the various costs and expenses that an investor in the
Fund would bear directly (shareholder transaction costs) or indirectly
(annual fund operating expenses).
A. Shareholder Transaction Costs are charges you pay when you buy
or sell shares of the Fund. See "Reduced Sales Charges" at Exhibit A to
see if you qualify for possible reductions in the sales charge. If you
request a wire redemption of less than $1,000, you will be charged a $5
wire fee.
B. Annual Fund Operating Expenses. Management Fees are paid by the
Fund to Calvert Asset Management Company, Inc. ("Investment Advisor")
for managing the Fund's investments and business affairs. Management
fees include the Sub-Advisory fee paid by the Investment Advisor to
Murray Johnstone International, Ltd., ("Sub-Advisor"), and the
Administrative Service fee paid to Calvert Administrative Services
Company. 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 daily share price and are not charged directly to
individual shareholder accounts. Please refer to "Management of the
Fund" for further information.
The Advisor may voluntarily defer fees or assume expenses of the Fund. For
the year ended September 30, 1995, no fees were waived or and some expenses were
reimbursed for Class C Shares. However, 0.14% of fees were paid indirectly.
Without the fee reduction, Other Expenses would have been 1.16%, and Total Fund
Operating Expenses for Class C Shares would have been 3.25%. The Investment
Advisory Agreement provides that the Advisor may later, to the extent permitted
by law, recapture any fees it deferred or expenses it assumed during the two
prior years provided, however, that total Annual fund Operating Expenses for
Class A shall not exceed 2.00% of average net assets during any year in which
the Advisor elects to exercise the recapture provision. The above table reflects
these agreements, although there was no recapture of fees in fiscal year 1995.
The Fund's Rule 12b-1 fees include an asset-based sales charge.
Thus, long-term shareholders in the Fund may pay more in total sales
charges than the economic equivalent of the maximum front-end sales
charge permitted by rules of the National Association of Securities
Dealers, Inc.
FINANCIAL HIGHLIGHTS
The following table provides information about the financial history of
the Fund's Class A and C shares. It expresses the information in terms
of a single share outstanding for the Fund throughout each period. The
table has been audited by Coopers & Lybrand, independent accountants,
whose report on the period from July 2, 1992 (commencement of
operations) through September 30, 1995 is included in the Annual Report
to Shareholders of the Fund. The table should be read in conjunction
with the financial statements and their related notes. The current
Annual Report to Shareholders is incorporated by reference into the
Statement of Additional Information.
Class A Shares
Year Ended
September 30, 1995
Net asset value, beginning of period $17.99
Income from investment operations
Net investment income .11
Net realized and unrealized gain
(loss) on investments .38
Total from investment operations .49
Distributions to shareholders
Dividends from net investment income --
Distribution in excess of net
investment income --
Distribution from net realized gains (.86)
Total Distributions (.86)
Total increase (decrease) in
net asset value (.37)
Net asset value, end of period $17.62
Total return<F4> 3.19%
Ratio to average net assets:
Net investment income (loss) .68%
Total expenses<F5> 1.93%
Net expenses 1.79%
Expenses reimbursed and/or waived --
Portfolio turnover 73%
Net assets, end of period (in thousands) $191,586
Number of shares outstanding
at end of year (in thousands) 10,876
<F4>Total return is not annualized for periods of less than one year and
does not reflect deduction of Class A front-end sales charge.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
are included in the ratio of net expenses.
Class A Shares
Year Ended
September 30, 1994
Net asset value, beginning of period $16.35
Income from investment operations
Net investment income --
Net realized and unrealized gain
(loss) on investments 2.14
Total from investment operations 2.14
Distributions to shareholders
Dividends from net investment income (.03)
Distribution in excess of net
investment income (.04)
Distribution from net realized gains (.43)
Total Distributions (.50)
Total increase (decrease) in
net asset value 1.64
Net asset value, end of period $17.99
Total return<F4> 13.44%
Ratio to average net assets:
Net investment income (loss) (.04%)
Total expenses<F5> --
Net expenses 1.96%
Expenses reimbursed and/or waived .04%
Portfolio turnover 78%
Net assets, end of period (in thousands) $175,543
Number of shares outstanding
at end of year (in thousands) 9,755
<F4>Total return is not annualized for periods of less than one year and
does not reflect deduction of Class A front-end sales charge.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
are included in the ratio of net expenses.
Class A Shares
Year Ended
September 30, 1993
Net asset value, beginning of period $14.31
Income from investment operations
Net investment income .08
Net realized and unrealized gain
(loss) on investments 2.04
Total from investment operations 2.12
Distributions to shareholders
Dividends from net investment income (.05)
Distribution in excess of net
investment income --
Distribution from net realized gains (.03)
Total Distributions (.08)
Total increase (decrease) in
net asset value 2.04
Net asset value, end of period $16.35
Total return<F4> 14.95%
Ratio to average net assets:
Net investment income (loss) .80%
Total expenses<F5> --
Net expenses 1.50%
Expenses reimbursed and/or waived .20%
Portfolio turnover 35%
Net assets, end of period (in thousands) $54,280
Number of shares outstanding
at end of year (in thousands) 3,319
<F4>Total return is not annualized for periods of less than one year and
does not reflect deduction of Class A front-end sales charge.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
are included in the ratio of net expenses.
Class A Shares
From Inception
July 2, 1992
Through
September 30, 1992
Net asset value, beginning of period $15.00
Income from investment operations
Net investment income .02
Net realized and unrealized gain
(loss) on investments (.71)
Total from investment operations (.69)
Distributions to shareholders
Dividends from net investment income --
Distribution in excess of net
investment income --
Distribution from net realized gains --
Total Distributions --
Total increase (decrease) in
net asset value (.69)
Net asset value, end of period $14.31
Total return<F4> (4.60%)
Ratio to average net assets:
Net investment income (loss) 1.23%(a)
Total expenses<F5> --
Net expenses 1.01%(a)
Expenses reimbursed and/or waived .60%(a)
Portfolio turnover --
Net assets, end of period (in thousands) $8,440
Number of shares outstanding
at end of year (in thousands) 590
(a) Annualized
<F4>Total return is not annualized for periods of less than one year and
does not reflect deduction of Class A front-end sales charge.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
are included in the ratio of net expenses.
Class C Shares
Year Ended
September 30, 1995
Net asset value, beginning of period $17.86
Income from investment operations
Net investment income (.05)
Net realized and unrealized gain
(loss) on investments .32
Total from investment operations .27
Distributions to shareholders
Dividends from net investment income --
Distribution in excess of net
investment income --
Distribution from net realized gains (.85)
Total Distributions (.85)
Total increase (decrease) in
net asset value (.58)
Net asset value, end of period $17.28
Total return<F4> 1.95%
Ratio to average net assets:
Net investment income (loss) (.47%)
Total expenses<F5> 3.12%
Net expenses 2.99%
Expenses reimbursed and/or waived .13%
Portfolio turnover 73%
Net assets, end of period (in thousands) $6,061
Number of shares outstanding
at end of year (in thousands) 351
<F4>Total return is not annualized for periods of less than one year and
does not reflect deduction of Class A front-end sales charge.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
are included in the ratio of net expenses.
Class C Shares
From Inception
March 1, 1994
Through
September 30, 1994
Net asset value, beginning of period $18.24
Income from investment operations
Net investment income (.06)
Net realized and unrealized gain
(loss) on investments (.32)
Total from investment operations (.38)
Distributions to shareholders
Dividends from net investment income --
Distribution in excess of net
investment income --
Distribution from net realized gains --
Total Distributions --
Total increase (decrease) in
net asset value (.38)
Net asset value, end of period $17.86
Total return<F4> (1.27%)
Ratio to average net assets:
Net investment income (loss) (1.16%(a)
Total expenses<F5> --
Net expenses 3.32%(a)
Expenses reimbursed and/or waived .50%(a)
Portfolio turnover 78%
Net assets, end of period (in thousands) $3,620
Number of shares outstanding
at end of year (in thousands) 203
(a) Annualized
<F4>Total return is not annualized for periods of less than one year and
does not reflect deduction of Class A front-end sales charge.
<F5>Effective September 30, 1995, this ratio reflects total expenses
before reduction for fees paid indirectly; previously such reductions
are included in the ratio of net expenses.
INVESTMENT OBJECTIVE AND POLICIES
Investment Objective
The Fund seeks to provide a high total return consistent with reasonable
risk by investing primarily in a globally diversified portfolio of
equity securities. All investments are screened for financial and social
criteria. There is, of course, no assurance that the Fund will be
successful in meeting its objective.
Under normal circumstances, the Fund will invest at least 65% of its
assets in equity securities.
The Fund will invest primarily in common stocks of established foreign
companies believed by the Sub-Advisor to have potential for
capital growth, income or both. Companies are considered established if
their securities are traded on a recognized stock exchange. However, the
Fund may invest in any other type of security including, but not limited
to, convertible securities, preferred stocks, bonds, notes and other
debt securities of companies, (including Euro-currency instruments and
securities) or of any international agency (such as the Asian
Development Bank or Inter-American Development Bank) or obligations of
domestic or foreign governments and their political subdivisions, and in
foreign currency transactions. See "Debt Obligations." The Fund may
establish and maintain reserves for temporary defensive purposes or to
enable it to take advantage of buying opportunities. The Fund's reserves
may be invested in domestic as well as foreign short-term money market
instruments including, but not limited to, U.S. and foreign government
and agency obligations, and obligations of supranational entities,
certificates of deposit, bankers' acceptances, time deposits, commercial
paper, short-term corporate debt securities and repurchase agreements.
Any money market instruments will be rated at least A-2/P-2 or better by
a nationally recognized statistical rating organization such as Standard
and Poor's or Moody's, or, if unrated, determined by the Advisor or
Sub-Advisor to be of equivalent credit quality. The Fund may also engage
in certain options transactions, and enter into futures contracts and
related options for hedging purposes. (See "Investment Techniques and
Risks.")
Under normal circumstances, the Fund will invest at least 65% of its
assets in the securities of issuers in no less than three countries, other than
the USA.
The Fund makes investments in various countries. Under normal
circumstances, business activities in a number of different foreign
countries will be represented in the Fund's investments. The Fund may,
from time to time, have more than 25% of its assets invested in any
major industrial or developed country which in the view of the
Sub-Advisor poses no unique investment risk. The Sub-Advisor considers
an investment in a given foreign country to have "no unique investment
risk" if the Fund's investment in that country is not disproportionate
to the relative size of the country's market versus the Morgan Stanley
Capital International Europe-Far East-Asia (EFEA) or World Index or
other comparable index, and if the capital markets in that country are
mature, and of sufficient liquidity and depth. Under exceptional
economic or market conditions, the Fund may invest substantially all of
its assets in only one or two countries, or in U.S. government
obligations. As an operating policy, excluding special equities and High
Social Impact Investments, the Fund will limit its investment in securities
of U.S. issuers to 5% of the Fund's net assets
The Sub-Advisor considers several factors in determining the various
countries in which to invest.
In determining the appropriate distribution of investments among various
countries and geographic regions, the Sub-Advisor ordinarily will
consider the following factors: prospects for relative economic growth
among foreign countries; expected levels of inflation; relative price
levels of the various capital markets; government policies influencing
business conditions; the outlook for currency relationships and the
range of individual investment opportunities available to the global
investor. The Fund may make investments in developing countries, which
involve exposure to economic structures that are generally less diverse
and mature than in the United States, and to political systems which may
be less stable. A country is considered to be a developing country if it
is not included in the Morgan Stanley Capital International World Index.
Examples of developing countries would currently include countries such
as Argentina, Brazil, Indonesia, Taiwan, Mexico, Turkey, Chile, India,
and Korea. Investing in developing countries often involves risk of high
inflation, high sensitivity to commodity prices, and government
ownership of the biggest industries in that country. Investing in
developing countries also involves a higher probability of occurrence of
the risks of investing in foreign securities in general, including but
not limited to, less financial information available, relatively
illiquid markets, and the possibility of adverse government action (see
"Risk Factors" below). No more than 30% of the Fund's net assets may be
invested in the securities of issuers located in developing countries.
In the past, markets of developing countries have been more volatile
than the markets of developed countries; however, such markets often
have provided higher long-term rates of return to investors. The
Sub-Advisor believes that these characteristics may be expected to
continue in the future.
Generally, the Fund will not trade in securities for short-term profits,
but, when circumstances warrant, securities may be sold without regard
to the length of time held.
Debt obligations
Although the Fund invests primarily in equity securities, it may invest
up to 35% of its net assets in debt securities, excluding money market
instruments. Of this, at least 30% will be of the highest credit quality
available (rated AAA or Aaa by Standard & Poor's (S&P) or Moody's,
respectively, or if not rated by S&P or Moody's, then determined by the
Sub-Advisor to be of equivalent credit quality). All fixed income
instruments are subject to interest-rate risk; that is, when market
interest rates rise, the current principal value of a bond will decline.
The remaining 5% of Fund assets that may be invested in debt securities
may be rated lower than AAA or Aaa, but in no event lower than BBB or
Baa, or, if unrated, then determined by the Sub-Advisor to be of
equivalent credit quality. The Sub-Advisor does not intend to purchase
any bonds rated lower than AAA unless the instrument provides an
opportunity to invest in an attractive company in which an equity
investment is not currently available or desirable.
The Fund will not buy any bonds rated less than investment grade. If a
change in credit quality after acquisition by the Fund causes the bond
to no longer be investment grade, the Sub-Advisor will generally
dispose of the bond if necessary to keep its holdings, if any, of such
bonds to 5% or less of the Fund's assets. See the Statement of
Additional Information, "Credit Quality" and "Appendix--Corporate Bond
and Commercial Paper Ratings" for more information on bond ratings and
credit quality.
Foreign Government Securities
The Sub-Advisor may from time to time invest in the debt instruments of
foreign sovereign governments. These may include short-term treasury
bills, notes and long-term bonds, and will only be considered for
investment by the Fund if they have the full guarantee of the government
in question. The Sub-Advisor will not invest in foreign government
securities with a rating by Moody's Investors Services lower than AA2.
RISK FACTORS
An investment in the Fund is subject to various risks. The net asset
value will fluctuate in response to changes in market conditions and the
value of the Fund's portfolio investments. The Fund's use of certain
investment techniques, such as foreign currency options, involve special
risks. See "Investment Techniques and Related Risks."
There are substantial and different risks involved in investing in
foreign securities. You should consider these risks carefully. For
example, there is generally less publicly available information about
foreign companies than is available about companies in the U.S. Foreign
companies are not subject to uniform audit and financial reporting
standards, practices and requirements comparable to those in the U.S.
Foreign securities involve currency risks. The U.S. dollar value of a
foreign security tends to decrease when the value of the dollar rises
against the foreign currency in which the security is denominated and
tends to increase when the value of the dollar falls against such
currency. Fluctuations in exchange rates may also affect the earning
power and asset value of the foreign entity issuing the security.
Dividend and interest payments may be returned to the country of origin,
based on the exchange rate at the time of disbursement, and restrictions
on capital flows may be imposed. Losses and other expenses may be
incurred in converting between various currencies in connections with
purchases and sales of foreign securities.
Foreign stock markets are generally not as developed or efficient as
those in the U.S. In most foreign markets volume and liquidity are less
than in the U.S. and, at times, volatility of price can be greater than
that in the U.S. Fixed commissions on foreign stock exchanges are
generally higher than the negotiated commissions on U.S. exchanges.
There is generally less government supervision and regulation of foreign
stock exchanges, brokers and companies than in the U.S.
There is also the possibility of adverse changes in investment or
exchange control regulations, expropriation or confiscatory taxation,
limitations on the removal of funds or other assets, political or social
instability, or diplomatic developments which could adversely affect
investments, assets or securities transactions of the Fund in some
foreign countries. The Fund is not aware of any investment or exchange
control regulations which might substantially impair the operations of
the Fund as described, although this could change at any time.
Many foreign securities are represented by American Depositary Receipts
("ADRs"), or other receipts evidencing ownership of foreign securities,
such as International Depositary Receipts and Global Depositary
Receipts. ADRs are U.S. dollar-denominated and are traded in the U.S. on
exchanges or over the counter. ADRs do not eliminate all the risk
inherent in investing in the securities of foreign issuers. However, by
investing in ADRs rather than directly in foreign issuers' stock, the
Fund may avoid some currency risks and liquidity risks during the
settlement period for either purchases or sales. The information
available for ADRs is subject to the more uniform and more exacting
accounting, auditing and financial reporting standards of the domestic
market or exchange on which they are traded. In general, there is a
large, liquid market in the U.S. for many ADRs. The Fund may also invest
in European Depositary Receipts ("EDRs"), which are receipts evidencing
an arrangement with a European bank similar to that for ADRs and are
designed for use in the European securities markets. EDRs are not
necessarily denominated in the currency of the underlying security.
The dividends and interest payable on certain of the Fund's foreign
securities may be subject to foreign withholding taxes, thus reducing
the net amount available for distribution to the Fund's shareholders.
You should understand that the expense ratio of the Fund can be expected
to be higher than those of investment companies investing only in
domestic securities since the costs of operations are higher.
INVESTMENT TECHNIQUES and RELATED RISKS
The Fund may write covered call options and purchase call and put
options on securities and security indices, and may write secured put
options and enter into option transactions on foreign currency. It may
also engage in transactions in financial futures contracts and related
options for hedging purposes, and invest in repurchase agreements. These
investment techniques and the related risks are summarized below and are
described in more detail in the Statement of Additional Information.
Writing (Selling) Call and Put Options
A call option on a security, security index or a foreign currency gives
the purchaser of the option, in return for the premium paid to the
writer (seller), the right to buy the underlying security, index or
foreign currency at the exercise price at any time during the option
period. Upon exercise by the purchaser, the writer of a call option on
an individual security or foreign currency has the obligation to sell
the underlying security or currency at the exercise price. A call option
on a securities index is similar to a call option on an individual
security, except that the value of the option depends on the weighted
value of the group of securities comprising the index and all
settlements are to be made in cash. A call option may be terminated by
the writer (seller) by entering into a closing purchase transaction in
which it purchases an option of the same series as the option previously
written.
A put option on a security, security index, or foreign currency gives
the purchaser of the option, in return for the premium paid to the
writer (seller), the right to sell the underlying security, index, or
foreign currency at the exercise price at any time during the option
period.
Upon exercise by the purchaser, the writer of a put option has the
obligation to purchase the underlying security or foreign currency at
the exercise price. A put option on a securities index is similar to a
put option on an individual security, except that the value of the
option depends on the weighted value of the group of securities
comprising the index and all settlements are made in cash.
The Fund may write exchange-traded call options on its securities. Call
options may be written on portfolio securities, securities indices, or
foreign currencies. With respect to securities and foreign currencies,
the Fund may write call and put options on an exchange or
over-the-counter. Call options on portfolio securities will be covered
since the Fund will own the underlying securities. Call options on
securities indices will be written only to hedge in an economically
appropriate way portfolio securities which are not otherwise hedged with
options or financial futures contracts and will be "covered" by
identifying the specific portfolio securities being hedged. Options on
foreign currencies will be covered by securities denominated in that
currency. Options on securities indices will be covered by securities
that substantially replicate the movement of the index. The Fund may not
write options on more than 50% of its total assets. Management presently
intends to cease writing options if and as long as 25% of such total
assets are subject to outstanding options contracts or if required under
regulations of state securities administrators.
The Fund may write call and put options in order to obtain a return on
its investments from the premiums received and will retain the premiums
whether or not the options are exercised. Any decline in the market
value of portfolio securities or foreign currencies will be offset to
the extent of the premiums received (net of transaction costs). If an
option is exercised, the premium received on the option will effectively
increase the exercise price or reduce the difference between the
exercise price and market value.
During the option period, the writer of a call option gives up the
opportunity for appreciation in the market value of the underlying
security or currency above the exercise price. It retains the risk of
loss should the price of the underlying security or foreign currency
decline. Writing call options also involves risks relating to the Fund's
ability to close out options it has written.
During the option period, the writer of a put option has assumed the
risk that the price of the underlying security or foreign currency will
decline below the exercise price. However, the writer of the put option
has retained the opportunity for an appreciation above the exercise
price should the market price of the underlying security or foreign
currency increase. Writing put options also involves risks relating to
the Fund's ability to close out options it has written.
Purchasing Call and Put Options, Warrants and Stock Rights
The Fund may invest up to an aggregate of 5% of its total assets in
exchange-traded or over-the-counter call and put options on securities
and securities indices and foreign currencies. Purchases of such options
may be made for the purpose of hedging against changes in the market
value of the underlying securities or foreign currencies. The Fund may
invest in call and put options whenever, in the opinion of the Advisor
or Sub-Advisor, a hedging transaction is consistent with its investment
objectives. The Fund may sell a call option or a put option which it has
previously purchased prior to the purchase (in the case of a call) or
the sale (in the case of a put) of the underlying security or foreign
currency. Any such sale would result in a net gain or loss depending on
whether the amount received on the sale is more or less than the premium
and other transaction costs paid on the call or put which is sold.
Purchasing a call or put option involves the risk that the Fund may lose
the premium it paid plus transaction costs.
Warrants and stock rights are almost identical to call options in their
nature, use and effect except that they are issued by the issuer of the
underlying security rather than an option writer, and they generally
have longer expiration dates than call options. The Fund may invest up
to 5% of its net assets in warrants and stock rights, but no more than
2% of its net assets in warrants and stock rights not listed on the New
York Stock Exchange or the American Stock Exchange.
Financial Futures and Related Options
The Fund may enter into financial futures contracts and related options
as a hedge against anticipated changes in the market value of their
portfolio securities or securities which they intend to purchase or in
the exchange rate of foreign currencies. Hedging is the initiation of an
offsetting position in the futures market which is intended to minimize
the risk associated with a position's underlying securities in the cash
market. Investment techniques related to financial futures and options
are summarized below and are described more fully in the Statement of
Additional Information.
Financial futures contracts consist of interest rate futures contracts,
foreign currency futures contracts and securities index futures
contracts. An interest rate futures contract obligates the seller of the
contract to deliver, and the purchaser to take delivery of, the interest
rate securities called for in the contract at a specified future time
and at a specified price. A foreign currency futures contract obligates
the seller of the contract to deliver, and the purchaser to take
delivery of, the foreign currency called for in the contract at a
specified future time and at a specified price. (See "Foreign Currency
Transactions.") A securities index assigns relative values to the
securities included in the index, and the index fluctuates with changes
in the market values of the securities so included. A securities index
futures contract is a bilateral agreement pursuant to which two parties
agree to take or make delivery of an amount of cash equal to a specified
dollar amount times the difference between the index value at the close
of the last trading day of the contract and the price at which the
futures contract is originally struck. An option on a financial futures
contract gives the purchaser the right to assume a position in the
contract (a long position if the option is a call and a short position
if the option is a put) at a specified exercise price at any time during
the period of the option.
The Fund may purchase and sell financial futures contracts which are
traded on a recognized exchange or board of trade and may purchase
exchange or board-traded put and call options on financial futures
contracts. It will engage in transactions in financial futures contracts
and related options only for hedging purposes and not for speculation.
In addition, the Fund will not purchase or sell any financial futures
contract or related option if, immediately thereafter, the sum of the
cash or U.S. Treasury bills committed with respect to its existing
futures and related options positions and the premiums paid for related
options would exceed 5% of the market value of its total assets. At the
time of purchase of a futures contract or a call option on a futures
contract, an amount of cash, U.S. Government securities or other
appropriate high-grade debt obligations equal to the market value of the
futures contract minus the Fund's initial margin deposit with respect
thereto, will be deposited in a segregated account with the Fund's
custodian bank to collateralize fully the position and thereby ensure
that it is not leveraged. The extent to which the Fund may enter into
financial futures contracts and related options may also be limited by
requirements of the Internal Revenue Code of 1986 for qualification as a
regulated investment company.
Closing out a Futures Position -- Risks
The Fund may close out its position in a futures contract or an option
on a futures contract only by entering into an offsetting transaction on
the exchange on which the position was established and only if there is
a liquid secondary market for the futures contract. If it is not
possible to close a futures position entered into by the Fund, the Fund
could be required to make continuing daily cash payments of variation
margin in the event of adverse price movements. In such situations, if
the Fund has insufficient cash, it may have to sell portfolio securities
to meet daily margin requirements at a time when it would be
disadvantageous to do so. The inability to close futures or options
positions could have an adverse effect on the Fund's ability to hedge
effectively. There is also risk of loss by the Fund of margin deposits
in the event of bankruptcy of a broker with whom the Fund has an open
position in a futures contract. The success of a hedging strategy
depends on the Sub-Advisor's ability to predict the direction of
interest rates and other economic factors. The correlation is imperfect
between movements in the prices of futures or options contracts, and the
movements of prices of the securities which are subject to the hedge. If
the Fund used a futures or options contract to hedge against a decline
in the market, and the market later advances (or vice-versa), the Fund
may suffer a greater loss than if it had not hedged.
Foreign Currency Transactions
The value of the Fund's assets as measured in United States dollars may
be affected favorably or unfavorably by changes in foreign currency
exchange rates and exchange control regulations, and the Fund may incur
costs in connection with conversions between various currencies. The
Fund will conduct its foreign currency exchange transactions either on a
spot (i.e., cash) basis at the spot rate prevailing in the foreign
currency exchange market, or through forward contracts to purchase or
sell foreign currencies. A forward foreign currency exchange contract
involves an obligation to purchase or sell a specific currency at a
future date, which may be any fixed number of days from the date of the
contract agreed upon by the parties, at a price set at the time of the
contract. These contracts are traded directly between currency traders
(usually large commercial banks) and their customers.
When the Fund enters into a contract for the purchase or sale of a
security denominated in a foreign currency, it may want to establish the
United States dollar cost or proceeds, as the case may be. By entering
into a forward contract in United States dollars for the purchase or
sale of the amount of foreign currency involved in the underlying
security transaction, the Fund is able to protect itself against a
possible loss between trade and settlement dates resulting from an
adverse change in the relationship between the United States dollar and
such foreign currency. However, this tends to limit potential gains
which might result from a positive change in such currency
relationships. The Fund may also hedge its foreign currency exchange
rate risk by engaging in currency financial futures and options
transactions.
When the Advisor or the Sub-Advisor believes that the currency of a
particular foreign country may suffer a substantial decline against the
United States dollar, it may enter into a forward contract to sell an
amount of foreign currency approximating the value of some or all of the
Fund's portfolio securities denominated in such foreign currency. The
forecasting of short-term currency market movement is extremely
difficult and whether such a short-term hedging strategy will be
successful is highly uncertain.
It is impossible to forecast with precision the market values of
portfolio securities at the expiration of a contract. Accordingly, it
may be necessary for the Fund to purchase additional currency on the
spot market (and bear the expense of such purchase) if the market value
of the security is less than the amount of foreign currency the Fund is
obligated to deliver when a decision is made to sell the security and
make delivery of the foreign currency in settlement of a forward
contract. Conversely, it may be necessary to sell on the spot market
some of the foreign currency received upon the sale of the portfolio
security if its market value exceeds the amount of foreign currency the
Fund is obligated to deliver.
If the Fund retains the portfolio security and engages in an offsetting
transaction, it will incur a gain or a loss (as described below) to the
extent that there has been movement in forward contract prices. If the
Fund engages in an offsetting transaction, it may subsequently enter
into a new forward contract to sell the foreign currency. Should forward
prices decline during the period between the Fund's entering into a
forward contract for the sale of a foreign currency and the date it
enters into an offsetting contract for the purchase of the foreign
currency, it would realize gains to the extent the price of the currency
it has agreed to sell exceeds the price of the currency it has agreed to
purchase. Should forward prices increase, the Fund would suffer a loss
to the extent the price of the currency it has agreed to purchase
exceeds the price of the currency it has agreed to sell. Although such
contracts tend to minimize the risk of loss due to a decline in the
value of the hedged currency, they also tend to limit any potential gain
which might result should the value of such currency increase. The Fund
may have to convert its holdings of foreign currencies into United
States dollars from time to time. Although foreign exchange dealers do
not charge a fee for conversion, they do realize a profit based on the
difference (the "spread") between the prices at which they are buying
and selling various currencies.
Repurchase agreements
Repurchase agreements are arrangements under which the Fund buys
securities and the seller simultaneously agrees to repurchase the
securities at a specified time and price. The Fund may engage in
repurchase agreements to earn a higher rate of return than it could earn
simply by investing in the obligation which is the subject of the
repurchase agreement. Repurchase agreements are not, however, without
risk. In the event of the bankruptcy of a seller during the term of a
repurchase agreement, a legal question exists as to whether the Fund
would be deemed the owner of the underlying security or would be deemed
only to have a security interest in and lien upon such security. The
Fund will only engage in repurchase agreements with recognized
securities dealers and banks determined to present minimal credit risk
by the Advisor under the direction and supervision of the Fund's Board
of Directors. In addition, the Fund will only engage in repurchase
agreements reasonably designed to secure fully during the term of the
agreement the seller's obligation to repurchase the underlying security
and will monitor the market value of the underlying security during the
term of the agreement. If the value of the underlying security declines
and is not at least equal to the repurchase price due the Fund pursuant
to the agreement, the Fund will require the seller to pledge additional
securities or cash to secure the seller's obligations pursuant to the
agreement. If the seller defaults on its obligation to repurchase and
the value of the underlying security declines, the Fund may incur a loss
and may incur expenses in selling the underlying security. Repurchase
agreements are always for periods of less than one year, and are
considered illiquid if not terminable within seven days.
The Fund may lend its portfolio securities.
The Fund may lend its portfolio securities to member firms of the New
York Stock Exchange and commercial banks with assets of one billion
dollars or more, provided the value of the securities loaned from the
Fund will not exceed 10% of the Fund's assets. Any such loans must be
secured continuously in the form of cash or cash equivalents such as
U.S. Treasury bills; the amount of the collateral must on a current
basis equal or exceed the market value of the loaned securities, and the
Fund must be able to terminate such loans upon notice at any time. The
Fund will exercise its right to terminate a securities loan in order to
preserve its right to vote upon matters of importance affecting holders
of the securities.
The advantage of such loans is that the Fund continues to receive the
equivalent of the interest earned or dividends paid by the issuers on
the loaned securities while at the same time earning interest on the
cash or equivalent collateral which may be invested in accordance with
the Fund's investment objective, policies and restrictions.
Securities loans are usually made to broker-dealers and other financial
institutions to facilitate their delivery of such securities. As with
any extension of credit, there may be risks of delay in recovery and
possibly loss of rights in the loaned securities should the borrower of
the loaned securities fail financially. However, the Fund will make
loans of its portfolio securities only to those firms the Advisor or
Sub-Advisor deems creditworthy and only on such terms the Advisor or
Sub-Advisor believes should compensate for such risk. On termination of
the loan the borrower is obligated to return the securities to the Fund.
The Fund will realize any gain or loss in the market value of the
securities during the loan period. The Fund may pay reasonable custodial
fees in connection with the loan.
The Fund's investment objective and those policies set forth as
fundamental investment restrictions may not be changed without
shareholder approval. The Fund's Statement of Additional Information
describes additional policies and restrictions concerning the portfolio
investments of the Fund.
High Social Impact Investments
The Fund has adopted a non-fundamental policy that permits it to invest
up to three percent of its assets in investments in securities that
offer a rate of return below the then prevailing market rate and that
present attractive opportunities for furthering the Fund's social
criteria ("High Social Impact Investments"). In applying this
restriction, the percentage of assets in such securities shall be based
upon the aggregate cumulative value at the time of the respective
acquisitions of such securities currently held by the Fund. Such
securities are typically illiquid and unrated and generally considered
non-investment grade debt securities which involve a greater risk of
default or price decline than investment-grade securities. Through
diversification and credit analysis and limited maturity, investment
risk can be reduced, although there can be no assurance that losses will
not occur.
Special Equities and Private Placements
Due to the particular social objective of the Fund, opportunities may
exist to promote especially promising approaches to social goals through
privately placed investments. The Special Equities Committee of the
Board of Directors identifies, evaluates, and selects these investments,
subject to ratification by the Board. The private placement investments
undertaken by the Fund, if any, may be subject to a high degree of risk.
Such investments may involve relatively small and untried enterprises
that have been selected in the first instance because of some attractive
social objectives or policies.
Many private placement investments have no readily available market and
may therefore be considered illiquid. Fund investments in private
placements and other securities for which market quotations are not
readily available are valued at fair market value as determined by the
Advisor or Sub-Advisor under the direction and control of the Board.
SOCIAL SCREENS
The Fund carefully reviews company policies and behavior regarding
social issues important to global quality of life:
- -environment
- -human rights
- -nuclear energy
- -weapons systems
- -alcohol/tobacco
- -health care.
The Fund currently observes the following operating policies which may
be changed by the Fund's Board of Directors without shareholder
approval: (1) the Fund actively seeks to invest in companies that
achieve excellence in both financial return and environmental soundness,
selecting issuers that take positive steps toward preserving and
enhancing our natural environment through their operations and products,
and avoiding companies with poor environmental records; (2) the Fund
will not invest in issuers which the Advisor or Sub-Advisor ascertains
contribute to human rights abuses in other countries; (3) the Fund will
not invest in producers of nuclear power or nuclear weapons, or
companies with more than 10% of revenues derived from the production or
sale of weapons systems; and (4) the Fund will not invest in companies
which derive more than 10% of revenues from the production of alcohol or
tobacco products, and 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.
The Fund believes that there are long-term benefits inherent in an
investment philosophy that demonstrates concern for the environment,
human rights, economic priorities, and international relations. Those
enterprises which exhibit a social awareness measured in terms of the
above attributes and considerations should be better prepared to meet
future societal needs for goods and services. 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
provide a positive return to both investors and society as a whole.
TOTAL RETURN
The Fund may advertise total return for each class. Total return is
based on historical results and is not intended to indicate future
performance.
Total return is calculated separately for each class. It includes not
only the effect of income dividends but also any change in net asset
value, or principal amount, during the stated period. The total return
of a class shows its overall change in value, including changes in share
price and assuming all of the class' dividends and capital gain
distributions are reinvested. A cumulative total return reflects the
class' performance over a stated period of time. An average annual total
return reflects the hypothetical annual compounded return that would
have produced the same cumulative total return if the performance had
been constant over the entire period. Because average annual returns
tend to smooth out variations in the returns, you should recognize that
they are not the same as actual year-by-year results. Both types of
total return usually will include the effect of paying the front-end
sales charge, in the case of Class A shares. Of course, total returns
will be higher if sales charges are not taken into account. Quotations
of "overall return" do not reflect deduction of the sales charge. You
should consider overall return figures only if you qualify for a reduced
sales charge, or for purposes of comparison with comparable figures
which also do not reflect sales charge, such as mutual fund averages
compiled by Lipper Analytical Services, Inc. ("Lipper"). Further
information about the Fund's performance is contained in its Annual
Report to Shareholders, which may be obtained without charge.
MANAGEMENT OF THE FUND
The Fund's Board of Directors supervises the Fund's activities and
reviews its contracts with companies that provide it with services.
The Fund is a series of Calvert World Values Fund, Inc., an open-end
diversified management investment company organized as a Maryland
corporation on February 14, 1992. Prior to June 1, 1996, the series operated
under the name of Calvert World Value Global Equity Fund. The other series of
Calvert World Values Fund, Inc. is Calvert Capital Accumulation Fund.
The Fund is not required to hold annual shareholder meetings, but
special meetings may be called for purposes such as electing or removing
directors, changing fundamental policies, or approving a management
contract. As a shareholder, you receive one vote for each share of the
Fund you own, except that matters affecting classes differently, such as
Distribution Plans, will be voted on separately by the affected
class(es).
Calvert Asset Management serves as Advisor to the Fund.
Calvert Asset Management Company, Inc. (the "Advisor") is the Fund's
investment advisor. The Advisor provides the Fund with investment
supervision and management, administrative services and office space;
furnishes executive and other personnel to the Fund; and pays the
salaries and fees of all Directors who are affiliated persons of the
Advisor. The Advisor may also assume and pay certain advertising and
promotional expenses of the Fund and reserves the right to compensate
broker-dealers in return for their promotional or administrative
services. The Fund pays all other operating expenses as noted in the
Statement of Additional Information.
The Fund's organizational expenses in the amount of $52,847 were
advanced to the Fund by the Advisor. These expenses are being amortized
over a sixty-month period which commenced on July 2, 1992. In the event
that the Fund liquidates before the deferred organization expenses are
fully amortized, the Advisor shall bear such unamortized deferred
organization expenses.
The Advisor serves as investment advisor to six other registered
investment companies in the Calvert Group of Funds: First Variable Rate
Fund for Government Income; Calvert Tax-Free Reserves; Calvert Cash
Reserves (doing business as Money Management Plus); Calvert Social
Investment Fund; Calvert Municipal Fund, Inc.; and The Calvert Fund. The
Advisor also serves as investment advisor to Acacia Capital Corporation,
a registered investment company whose shares are sold to insurance
companies to fund the benefits under certain variable annuity and
variable life insurance policies.
Portfolio Manager
Investment selections for the Global Equity Fund are made by the
Sub-Advisor, Murray Johnstone International, Ltd. Andrew Preston,
Portfolio Manager, studied at Melbourne University in Australia and
Ritsumeikan University in Japan prior to working for the Australian
Department of Foreign Affairs. He joined Murray Johnstone in 1985 as an
analyst in the U.K. and U.S. departments, became Fund Manager in the
Japanese Department, played a prominent role in the establishment and
operation of Yamaichi-Murray Johnstone, and then began to support Murray
Johnstone's growing U.S. business.
Calvert Group is one of the largest investment management firms in the
Washington, D.C. area.
Calvert Group, Ltd., parent of the Fund's investment advisor, transfer
agent, and distributor, is a subsidiary of Acacia Mutual Life Insurance
Company of Washington, D.C. Calvert Group is one of the largest
investment management firms in the Washington, D.C. area. Calvert Group,
Ltd. and its subsidiaries are located at 4550 Montgomery Avenue, Suite
1000N, Bethesda, Maryland 20814. As of December 31, 1995, Calvert Group
managed and administered assets in excess of $4.8 billion and more than
200,000 shareholder and depositor accounts.
Murray Johnstone International, Ltd. is the Fund's Sub-Advisor.
Murray Johnstone International, Ltd. (the "Sub-Advisor") is the
Sub-Advisor to the Fund. Its principal business office in the U.S. is
875 N. Michigan Avenue, Suite 3415, Chicago, Illinois 60611. The
Sub-Advisor manages the investment and reinvestment of the assets of the
Fund, although the Advisor may manage the U.S. dollar portion of the
Fund's cash reserves. The Advisor will continuously monitor and evaluate
the performance and investment style of the Sub-Advisor. The Sub-Advisor
is a wholly-owned subsidiary of United Asset Management Company.
The Advisor receives a fee based on a percentage of the Fund's assets.
From this, it pays the Sub-Advisor.
The Investment Advisory Agreement between the Fund and the Advisor
provides that the Advisor is entitled to an annual fee, payable monthly,
of 1.00% of the Fund's average daily net assets up to $250 million,
0.975% of the next $250 million, and 0.925% on assets in excess of $500
million. The Advisor may in its discretion defer its fees or assume the
Fund's operating expenses. For the year ended September 30, 1995, the
Advisor received fees of 1.00% of the Fund's average daily net assets.
For the same period, the Advisor reimbursed expenses equal to 0.13% of
the Class C average daily net assets. The Investment Advisory Agreement
provides that the Advisor may later, to the extent permitted by law,
recapture any fees it deferred, or expenses it assumed during the two
prior years. During the 1995 fiscal year, the Advisor did not recapture
fees.
The Investment Sub-Advisory Agreement between the Advisor and the
Sub-Advisor provides that the Sub-Advisor is entitled to a sub-advisory
fee of 0.45% of the Fund's average daily net assets managed by the
Sub-Advisor up to $250 million, 0.425% on the next $250 million and
0.40% on such assets in excess of $500 million. The Sub-Advisor's fee is
paid by the Advisor, not the Fund.
Calvert Administrative Services Company provides administrative services
for the Fund.
Calvert Administrative Services Company ("CASC"), an affiliate of the
Advisor, has been retained by the Fund to provide certain administrative
services necessary to the conduct of its affairs, including the
preparation of regulatory filings and shareholder reports, the daily
determination of its net asset value per share and dividends, and the
maintenance of its portfolio and general accounting records. For
providing such services, CASC receives an annual fee, payable monthly,
from the Fund of 0.10% of the Fund's aggregate daily net assets with a
minimum fee of $40,000 per year.
Calvert Distributors, Inc. serves as underwriter to market the Fund's
shares.
Calvert Distributors, Inc. ("CDI") is the Fund's principal underwriter
and distributor. Under the terms of its underwriting agreement with the
Fund, CDI markets and distributes the Fund's shares and is responsible
for payment of commissions and service fees to broker-dealers, banks,
and financial services firms, preparation of advertising and sales
literature, and printing and mailing of prospectuses to prospective
investors.
The transfer agent keeps your account records.
Calvert Shareholder Services, Inc. is the Fund's transfer, dividend
disbursing and shareholder servicing agent.
SHAREHOLDER GUIDE
Opening An Account
You can buy shares of the Fund in several ways.
An account application should accompany this prospectus. A completed and
signed application is required for each new account you open, regardless
of the method you choose for making your initial investment. Additional
forms may be required from corporations, associations, and certain
fiduciaries. If you have any questions or need extra applications, call
your broker, or Calvert Group at 800-368-2748. Be sure to specify which
class you wish to purchase.
To invest in any of Calvert's tax-deferred retirement plans, please call
Calvert Group at 800-368-2748 to receive information and the required
separate application.
Alternative Sales Options
The Fund offers two classes of shares:
Class A Shares - Front End Load Option
Class A shares are sold with a front-end sales charge at the time of
purchase. Class A shares are not subject to a sales charge when they are
redeemed.
Class C shares - Level Load Option
Class C shares are sold without a sales charge at the time of purchase
or redemption.
Class C shares have higher expenses
The Fund bears some of the costs of selling its shares under
Distribution Plans adopted with respect to its Class A and Class C
shares pursuant to Rule 12b-1 under the 1940 Act. Payments under the
Class A Distribution Plan are limited to 0.35% annually of the average
daily net asset value of Class A shares. The Class C Distribution Plan
provides for the payment of an annual distribution fee to CDI of up to
0.75%, plus a service fee of up to 0.25%, for a total of 1.00% of the
average daily net assets attributable to Class C.
Considerations for deciding which class of shares to buy
Income distributions for Class A shares will probably be higher than
those for Class C shares, as a result of the distribution expenses
described above. (See also "Yield and Total Return.") You should
consider Class A shares if you qualify for a reduced sales charge under
Class A. Other factors affecting the class decision include the amount
of the purchase or if you plan to hold the shares for several years.
Class A Shares
Class A shares are offered at net asset value plus a front-end sales
charge as follows:
Concession to
As a % Dealers as a %
As a % of of Net of Amount
Offering Amount Invested
Amount of Investment Price Invested
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
Less than $50,000 4.75% 4.99% 4.00%
$50,000 but less than $100,000 3.75% 3.90% 3.00%
$100,000 but less than $250,000 2.75% 2.83% 2.25%
$250,000 but less than $500,000 1.75% 1.78% 1.25%
$500,000 but less than $1,000,000 1.00% 1.01% 0.80%
$1,000,000 and over 0.00% 0.00% 0.25%*
*For new investments (new purchases but not exchanges) of $1 million or
more a broker-dealer will have the choice of being paid a finder's fee
by CDI in one of the following methods: (1) At the time of purchase, CDI
may pay broker-dealers, 0.25% of the amount of the purchase;
or (2) CDI may pay broker-dealers on a quarterly basis of 12 months, an
annual rate of 0.30%. Payments will be made less redemptions. For either
choice, quarterly trailing commissions will begin in the thirteenth month.
CDI reserves the right to recoup any portion of the amount paid to the dealer
if the investor redeems some or all of the shares from the Fund within thirteen
months of the time of purchase.
Sales charges on Class A shares may be reduced or eliminated in certain
cases. See Exhibit A to this prospectus.
The sales charge is paid to CDI, which in turn normally reallows a
portion to your broker-dealer. Upon written notice to dealers with whom
it has dealer agreements, CDI may reallow up to the full applicable
sales charge. Dealers to whom 90% or more of the entire sales charge is
reallowed may be deemed to be underwriters under the Securities Act of
1933.
In addition to any sales charge reallowance or finder's fee, your
broker-dealer, or other financial service firm through which your
account is held, currently will be paid periodic service fees at an
annual rate of up to 0.25% of the average daily net asset value of Class
A shares held in accounts maintained by that firm.
Class A Distribution Plan
The Fund has adopted a Distribution Plan with respect to its Class A
shares (the "Class A Distribution Plan"), which provides for payments at
a maximum annual rate of 0.35% of the average daily net asset value of
Class A shares, to pay expenses associated with the distribution and
servicing of Class A shares. Amounts paid by the Fund to CDI under the
Class A Distribution Plan are used to pay to dealers and others,
including CDI salespersons who service accounts, service fees at an
annual rate of up to 0.25% of the average daily net asset value of Class
A shares, and to pay CDI for its marketing and distribution expenses,
including, but not limited to, preparation of advertising and sales
literature and the printing and mailing of prospectuses to prospective
investors. During the fiscal year ended September 30, 1995, the Fund
paid Class A Distribution Plan expenses of 0.25% of average net assets.
Each of the Distribution Plans may be terminated at any time by vote of
the Independent Directors or by vote of a majority of the outstanding
voting shares of the respective class.
Class C Shares
Class C shares are not available through all dealers. Class C shares are
offered at net asset value, without a front-end sales charge or a
contingent deferred sales charge. Class C expenses are higher than those
of Class A.
Class C Distribution Plan
The Fund has adopted a Distribution Plan with respect to its Class C
shares (the "Class C Distribution Plan"), which provides for payments at
an annual rate of up to 1.00% of the average daily net asset value of
Class C shares, to pay expenses of the distribution and servicing of
Class C shares. Amounts paid by the Fund under the Class C Distribution
Plan are currently used by CDI to pay dealers and other selling firms
dealer-paid quarterly compensation at an annual rate of up to 0.75%,
plus a service fee, as described above under "Class A Distribution
Plan," of up to 0.25%, of the average daily net asset value of each share
sold by such others. For the fiscal year ended September 30, 1995, the
Fund paid Class C Distribution Plan expenses of 1.00% of average net
assets.
Arrangements with Broker-Dealers and Others
CDI may also pay additional concessions, including non-cash promotional
incentives, such as merchandise or trips, to dealers employing
registered representatives who have sold or are expected to sell a
minimum dollar amount of shares of the Fund and/or shares of other funds
underwritten by CDI. CDI may make expense reimbursements for special
training of a dealer's registered representatives, advertising or
equipment, or to defray the expenses of sales contests. Eligible
marketing and distribution expenses may be paid pursuant to the Fund's
Rule 12b-1 Distribution Plan.
Dealers or others may receive different levels of compensation depending
on which class of shares they sell. Payments pursuant to a Distribution
Plan are included in the operating expenses of the class.
HOW TO BUY SHARES
(BE SURE TO SPECIFY WHICH CLASS YOU ARE BUYING)
Method Initial investment Additional
Investments
By Mail $2,000 minimum $250 minimum
Please make your check Please make your check
payable to the Fund and payable to the Fund and
mail it with your mail it with your
application to: investment slip to:
Calvert Group Calvert Group
P.O. Box 419544 P.O. Box 419739
Kansas City, MO 64141-6544 Kansas City, MO 64105-6739
By Registered, Certified, or Overnight Mail: Calvert Group
c/o NFDS, 6th Floor
1004 Baltimore
Kansas City, MO
64105-1807
Through Your Broker $2,000 minimum
$250 minimum
At the Calvert Visit the Calvert Branch Office to make
investments by
Branch Office check. See the back cover page for
the address.
FOR ALL OPTIONS BELOW, PLEASE CALL YOUR BROKER OR CALVERT GROUP AT
800-368-2745
By Exchange $2,000 minimum
$250 minimum
(From your account in another Calvert Group fund)
When opening an account by exchange, your new account must be
established with the same name(s), address and taxpayer identification
number as your existing Calvert account.
By Bank Wire $2,000 minimum
$250 minimum
By Calvert Money Not Available
$50 minimum
Controller* for Initial Investment
*Please allow sufficient time for Calvert Group to process your initial
request for this service, normally 10 business days. The maximum
transaction amount is $300,000, and your purchase request must be
received by 4:00 p.m. Eastern time.
NET ASSET VALUE
Net asset value, or "NAV," refers to the worth of one share. NAV is
computed by adding the value of all portfolio holdings, plus other
assets, deducting liabilities and then dividing the result by the number
of shares outstanding. The NAV of each class will vary daily based on
the market values of its investments. This value is calculated at the
close of the Fund's business day, which coincides with the closing of
the regular session of the New York Stock Exchange (normally 4:00 p.m.
Eastern time). The Fund is open for business each day the New York Stock
Exchange is open. All purchases of Fund shares will be confirmed and
credited to your account in full and fractional shares (rounded to the
nearest 1/1000th of a share).
Fund securities and other assets are valued based on market quotations,
except that securities maturing within 60 days are valued at amortized
cost. If quotations are not available, securities are valued by a method
that the Board of Directors believes accurately reflects fair value.
Securities which are primarily traded on foreign securities exchanges
are generally valued at the preceding closing values of such securities
on their respective exchanges (See the Statement of Additional
Information -- "Determination of Net Asset Value") relating to the
valuation of foreign securities. Financial futures are valued at the
settlement price established each day by the board of trade or exchange
on which they are traded. All assets and liabilities initially expressed
in foreign currency values will be converted into United States dollars
as last quoted by any recognized dealer.
WHEN YOUR ACCOUNT WILL BE CREDITED
Before you buy shares, please read the following information to make
sure your investment is accepted and credited properly.
Your purchase will be processed at the next offering price based on the
next net asset value calculated after your order is received and
accepted. If your purchase is made by federal funds wire, or exchange,
and is received by 4:00 p.m. (Eastern time), your account will be
credited on the day of receipt. If your purchase is received after 4:00
p.m. Eastern time, it will be credited the next business day. All your
purchases must be made in U.S. dollars and checks must be drawn on U.S.
banks. No cash will be accepted. The Fund reserves the right to suspend
the offering of shares for a period of time or to reject any specific
purchase order. If your check does not clear, your purchase will be
cancelled and you will be charged a $10 fee plus costs incurred by the
Fund. When you purchase by check or with Calvert Money Controller, the
Fund can hold payment on redemptions until it is reasonably satisfied
that the investment is collected (normally 10 business days from
purchase date). To avoid this collection period, you can wire federal
funds from your bank, which may charge you a fee. Check purchases received
at the branch location will be credited the next business day. Any check
purchase received without an investment slip may cause delayed crediting.
Certain financial institutions or broker-dealers which have entered into
a sales agreement with the Distributor may enter confirmed purchase
orders on behalf of customers by phone, with payment to follow within a
number of days of the order as specified by the program. If payment is
not received in the time specified, the financial institution could be
held liable for resulting fees or losses.
EXCHANGES
You may exchange shares of the Fund for shares of the same class of
other Calvert Group Funds.
If your investment goals change, the Calvert Group Family of Funds has a
variety of investment alternatives that includes common stock funds,
tax-exempt and corporate bond funds, and money market funds. The
exchange privilege is a convenient way to buy shares in other Calvert
Group Funds in order to respond to changes in your goals or in market
conditions. However, the Fund is intended as a long-term investment and
not for frequent short-term trades. Before you make an exchange from a
Fund, please note the following:
Call your broker or a Calvert representative for information
and a prospectus for any of Calvert's other Funds registered in your
state. Read the prospectus of the Fund into which you want to exchange
for relevant information, including class offerings. The exchange
privilege is only available in states where shares of the fund into
which you want to exchange are registered for sale.
Each exchange represents the sale of shares of one Fund and the purchase
of shares of another. Therefore, you could realize a taxable gain or
loss on the transaction.
Complete and sign an application for an account in that fund,
taking care to register your new account in the same name and taxpayer
identification number as your existing Calvert account(s). Exchange
instructions may then be given by telephone if you have not declined
telephone transaction privileges and the shares are not in certificate
form. See "Selling Your Shares" and "How to Sell Your Shares-- By
Telephone, and--By Exchange to Another Calvert Group Fund."
Shares on which you have already paid a sales charge at Calvert
Group and shares acquired by reinvestment of dividends or distributions
may be exchanged into another fund at no additional charge.
Shareholders (and those managing multiple accounts) who make
two purchases and two exchange redemptions of shares of the same fund
during any 6-month period will be given written notice that they may be
prohibited from making additional investments. This policy does not
prohibit a shareholder from redeeming shares of the Fund, and does not
apply to trades solely among money market funds.
For purposes of the exchange privilege, effective July 31, 1996, the
Fund is related to Summit Cash Reserves Fund by investment and investor
services. The Fund reserves the right to terminate or modify the
exchange privilege in the future upon 60 days written notice.
OTHER CALVERT GROUP SERVICES
Calvert Information Network
24 hour yield and prices
Calvert Group has a round-the-clock telephone service that lets existing
customers use a push button phone with tone capabilities to obtain
prices, performance information, account balances, and authorize certain
transactions.
Calvert Money Controller
Calvert Money Controller eliminates the delay of mailing a check or the
expense of wiring funds. You can request this free service on your
application.
This service allows you to authorize electronic transfers of money to
purchase or sell shares. You use Calvert Money Controller like an
"electronic check" to move money ($50 to $300,000) between your bank
account and your account in the Fund 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. All
Calvert Money Controller transaction requests must be received by 4:00
p.m. Eastern time.
You may also arrange systematic monthly or quarterly investments
(minimum $50) into your Calvert Group account. After you give us proper
authorization, your bank account will be debited to purchase Fund
shares. You will receive a confirmation from us for these transactions,
and a debit entry will appear on your bank statement. Share purchases
made through Calvert Money Controller will be subject to the applicable
sales charge. If you would like to make arrangements for systematic
monthly or quarterly redemptions from your Calvert account, call us for
a Money Controller Application.
Telephone Transactions
Calvert may record all telephone calls.
If you have telephone transaction privileges, you may purchase, redeem,
or exchange shares, wire funds and use Calvert Money Controller by
telephone. You automatically have telephone privileges unless you elect
otherwise. The Fund, the transfer agent and their affiliates are not
liable for acting in good faith on telephone instructions relating to
your account, so long as they follow reasonable procedures to determine
that the telephone instructions are genuine. Such procedures may include
recording the telephone calls and requiring some form of personal
identification. You should verify the accuracy of telephone transactions
immediately upon receipt of your confirmation statement.
Optional Services
Complete the 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 broker-dealer or financial institution, you should read the
program materials in conjunction with this Prospectus. Certain features
of the Fund may be modified in these programs, and administrative
charges may be imposed for the services rendered.
Tax-Saving Retirement Plans
Contact Calvert Group for complete information kits discussing the
plans, and their benefits, provisions and fees.
Calvert Group can set up your new account in the Fund under one of
several tax-deferred plans. These plans let you invest for retirement
and shelter your investment income from current taxes. Minimums may
differ from those listed in the chart on page __. Also, reduced sales
charges may apply. See "Exhibit A - Reduced Sales Charges."
Individual retirement accounts (IRAs): available to anyone who
has earned income. You may also be able to make investments in the name
of your spouse, if your spouse has no earned income.
Qualified Profit-Sharing and Money-Purchase Plans (including
401(k) Plans): available to self-employed people and their partners, or
to corporations and their employees.
Simplified Employee Pension Plan (SEP-IRA): available to
self-employed people and their partners, or to corporations. Salary
reduction pension plans (SAR-SEP IRAs) are also available to employers
with 25 or fewer employees.
403(b)(7) Custodial Accounts: available to employees of most
non-profit organizations and public schools and universities.
HOW TO SELL YOUR SHARES
You may redeem all or a portion of your shares on any business day. Your
shares will be redeemed at the next net asset value calculated after
your redemption request is received and accepted. See below for specific
requirements necessary to make sure your redemption request is accepted.
Remember that the Fund may hold payment on the redemption of your shares
until it is reasonably satisfied that investments made by check or by
Calvert Money Controller have been collected (normally up to 10 business
days).
Redemption Requirements To Remember
To ensure acceptance of your redemption request, please follow the
procedures described here and below.
Once your shares are redeemed, the proceeds will normally be sent to you
on the next business day, but if making immediate payment could
adversely affect the Fund, it may take up to 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.
Minimum account balance is $1,000.
Please maintain a balance in your account of at least $1,000, per class.
If, due to redemptions, it falls below $1,000, your account may be
closed and the proceeds mailed to you at the address of record. You will
be given notice that your account will be closed after 30 days unless
you make an additional investment to increase your account balance to
the $1,000 minimum.
By Mail To:
Calvert Group
P.O. Box 419544
Kansas City, MO
64141-6544
You may redeem available funds from your account at any time by sending
a letter of instruction, including your name, account and Fund number,
the number of shares or dollar amount, and where you want the money to
be sent. Additional requirements, below, may apply to your account. The
letter of instruction must be signed by all required authorized signers.
If you want the money to be wired to a bank not previously authorized,
then a voided bank check must be enclosed with your letter. If you do
not have a voided check or if you would like funds sent to a different
address or another person, your letter must be signature guaranteed.
Type of Registration Requirements
Corporations, Associations Letter of
instruction and
corporate
resolution, signed
by person(s)
authorized to act on
the account,
accompanied by
signature
guarantee(s).
Trusts Letter of
instruction signed
by the Trustee(s)
(as Trustees), with
a signature
guarantee. (If the
Trustee's name is
not registered on
your account,
provide a copy of
the trust document,
certified within the
last 60 days.)
By Telephone
Please call 800-368-2745. You may redeem shares from your account by
telephone and have your money mailed to your address of record or wired
to an address or bank you have previously authorized. A charge of $5 is
imposed on wire transfers of less than $1,000. See "Telephone
Transactions" on page ___. If for any reason you are unable to reach the
Fund by telephone, whether due to mechanical difficulties, heavy market
volume, or otherwise, you may send a written redemption request to the
Fund by overnight mail, or, if your account is held through a broker,
see "Through Your Broker" below.
Calvert Money Controller
Please allow sufficient time for Calvert Group to process your initial
request for this service (normally 10 business days). Your request for a
redemption by this service must be received by 4:00 p.m. Eastern time.
Accounts cannot be closed by this service.
Exchange to Another Calvert Group Fund
You must meet the minimum investment requirement of the other Calvert
Group Fund. You can only exchange between accounts with identical names,
addresses and taxpayer identification number, unless previously
authorized with a signature-guaranteed letter. See "Exchanges."
Systematic Check Redemptions
If you maintain an account with $10,000 or more, you may have up to two
(2) redemption checks for $100 or more sent to you on the 15th of each
month, simply by sending a letter with all the information, including
your account number, and the dollar amount ($100 minimum). If you would
like a regular check mailed to another person or place, your letter must
be signature guaranteed.
Through your Broker
If your account is held in your broker's name ("street name"), you
should contact your broker directly to transfer, exchange or redeem
shares.
DIVIDENDS AND TAXES
Each year, the Fund distributes substantially all of its net investment
income and capital gains to shareholders.
Dividends from the Fund's net investment income are declared and paid
annually. Net investment income consists of the interest income, net
short-term capital gains, if any, and dividends declared and paid on
investments, less expenses. Distributions of net long-term capital
gains, if any, are normally declared and paid by the Fund once a year;
however, the Fund does not anticipate making any such distributions
unless available capital loss carryovers have been used or have expired.
Dividend and distribution payments will vary between classes; dividend
payments are anticipated to be generally higher for Class A shares.
Dividend Payment Options
Dividends and distributions are automatically reinvested in additional
shares, unless on the account application you request to have them paid
to you in cash (by check or by Calvert Money Controller). You may also
request to have your dividends and distributions from the Fund invested
at net asset value ("NAV") in shares of any other Calvert Group Fund. If
you choose to have them reinvested in the same Fund, the new shares will
be purchased at the NAV (no sales charge) on the reinvest date, which is
generally 1 to 3 days prior to the payment date. You must notify the
Fund in writing prior to the record date if you want to change your
payment options. If you elect to have dividends and/or distributions
paid in cash, and the U.S. Postal Service cannot deliver the check, or
if it remains uncashed for six months, it, as well as future dividends
and distributions, will be reinvested in additional shares.
"Buying a Dividend"
At the time of purchase, the share price of the Fund may reflect
undistributed income, capital gains or unrealized appreciation of
securities. Any income or capital gains from these amounts which are
later distributed to you are fully taxable as dividends or capital gains
distributions. On the record date for a distribution, the Fund's per
share value is reduced by the amount of the distribution. If you buy
shares just before the record date ("buying a dividend") you will pay
the full price for the shares and then receive a portion of the price
back as a taxable distribution.
Federal Taxes
The Fund normally distributes all net income and capital gain to
shareholders. These distributions are taxable to you regardless of
whether they are taken in cash or reinvested. Distributions of dividends
and net realized short-term capital gains are taxable as ordinary
income; capital gains distributions are taxable as long-term capital
gains regardless of how long you have held the shares. Dividends and
distributions declared in December and paid in January are taxable in
the year they are declared. The Fund will mail you Form 1099-DIV in
January indicating the federal tax status of your dividends.
Distributions resulting from the sale of certain foreign currencies and
debt securities are taxed as ordinary income gain or loss. If these
transactions result in reducing the Fund's net income, a portion of the
dividends may be classified as a return of capital (which lowers your
tax base). If the Fund pays taxes to foreign governments during the
year, the taxes will reduce the Fund's dividends but will still be
included in your taxable income. However, you may be able to claim an
offsetting credit or deduction on your tax return for your portion of
foreign taxes paid by the Fund.
You may realize a capital gain or loss when you sell or exchange shares.
If you sell or exchange your Fund shares you will have a short or
long-term capital gain or loss, depending on how long you owned the
shares which were sold. In January, the Fund will mail you Form 1099-B
indicating the proceeds from all sales, including exchanges. You should
keep your annual year-end account statements to determine the cost
(basis) of the shares to report on your tax returns.
Taxpayer Identification Number, Back-up Withholding
If we do not have your correct Social Security or Corporate Tax
Identification Number ("TIN") and a signed certified application or Form
W-9, federal law requires the Fund to withhold 31% of your dividends,
capital gain distributions, and redemptions. In addition, you may be
subject to a fine. You will also be prohibited from opening another
account by exchange. If this TIN information is not received within 60
days after your account is established, your account may be redeemed at
the current NAV on the date of redemption. The Fund reserves the right
to reject any new account or any purchase order for failure to supply a
certified TIN.
EXHIBIT A
REDUCED SALES CHARGES (CLASS A ONLY)
You may qualify for a reduced sales charge through several purchase
plans available. You must notify the Fund at the time of purchase to
take advantage of the reduced sales charge.
Right of Accumulation. The sales charge is calculated by taking into
account not only the dollar amount of a new purchase of shares, but also
the higher of cost or current value of shares previously purchased in
Calvert Group Funds that impose sales charges. This automatically
applies to your account for each new purchase.
Letter of Intent. If you plan to purchase $50,000 or more of Fund shares
over the next 13 months, your sales charge may be reduced through a
"Letter of Intent." You pay the lower sales charge applicable to the
total amount you plan to invest over the 13-month period, excluding any
money market fund purchases. Part of your shares will be held in escrow,
so that if you do not invest the amount indicated, you will have to pay
the sales charge applicable to the smaller investment actually made. For
more information, see the Statement of Additional Information.
Group Purchases. If you are a member of a qualified group, you may
purchase shares of the Fund at the reduced sales charge applicable to
the group taken as a whole. The sales charge is calculated by taking
into account not only the dollar amount of the shares you purchase, but
also the higher of cost or current value of shares previously purchased
and currently held by other members of your group.
A "qualified group" is one which (i) has been in existence for more than
six months, (ii) has a purpose other than acquiring Fund shares at a
discount, and (iii) satisfies uniform criteria which enable CDI and
dealers offering Fund shares to realize economies of scale in
distributing such shares. A qualified group must have more than 10
members, must be available to arrange for group meetings between
representatives of CDI or dealers distributing the Fund's shares, must
agree to include sales and other materials related to the Fund in its
publications and mailings to members at reduced or no cost to CDI or
dealers, and must seek to arrange for payroll deduction or other bulk
transmission of investments to the Fund.
Pension plans may not qualify participants for group purchases; however,
such plans may qualify for reduced sales charges under a separate
provision (see below). Members of a group are not eligible for a Letter
of Intent.
Retirement Plans Under Section 457, Section 403(b)(7), or Section
401(k). There is no sales charge on shares purchased for the benefit of a
retirement plan under Section 457 of the Internal Revenue Code of 1986, as
amended ("Code"), or for a plan qualifying under Section 403(b)(7) of the Code
if, at the time of purchase, Calvert Group has been notified in writing
that the 403(b)(7) plan has at least 200 eligible employees.
Furthermore, there is no sales charge on shares purchased for the
benefit of a retirement plan qualifying under Section 401(k) of the Code if,
at the time of such purchase, the 401(k) plan administrator has notified
Calvert Group in writing that a) its 401(k) plan has at least 200
eligible employees; or b) the cost or current value of shares the plan
has in Calvert Group of Funds (except money market funds) is at least $1
million.
Neither the Fund, nor CDI, nor any affiliate thereof will reimburse a
plan or participant for any sales charges paid prior to receipt of such
written communication and confirmation by Calvert Group. Plan
administrators should send requests for the waiver of sales charges
based on the above conditions to: Calvert Group Retirement Plans, 4550
Montgomery Avenue, Suite 1000N, Bethesda, Maryland 20814.
Other Circumstances. There is no sales charge on shares of any fund
(portfolio or series) of the Calvert Group of Funds sold to:
(1) current and retired members of the Board of Trustees/Directors of
the Calvert Group of Funds, (and the Advisory Council of the Calvert
Social Investment Fund);
(2) directors, officers and employees of the Advisor, Distributor, and
their affiliated companies;
(3) directors, officers and registered representatives of brokers
distributing the Fund's shares; and immediate family members of persons
listed in (1), (2), or (3) above;
(4) dealers, brokers, or registered investment advisors that have
entered into an agreement with CDI providing specifically for the use of
shares of the Fund (Portfolio or Series) in particular investment
programs or products (where such program or product already has a fee
charged therein) made available to the clients of such dealer, broker,
or registered investment advisor;
(5) trust departments of banks or savings institutions for trust clients
of such bank or savings institution; and
(6) purchases placed through a broker maintaining an omnibus account
with the Fund (Portfolio or Series) and the purchases are made by (a)
investment advisors or financial planners placing trades for their own
accounts (or the accounts of their clients) and who charge a management,
consulting, or other fee for their services; or (b) clients of such
investment advisors or financial planners who place trades for their own
accounts if such accounts are linked to the master account of such
investment advisor or financial planner on the books and records of the
broker or agent; or (c) retirement and deferred compensation plans and
trusts, including, but not limited to, those defined in Section 401(a) or
Section 403(b) of the 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 your account
with no additional sales charge.
Purchases made at net asset value ("NAV"). 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.
Reinstatement Privilege. If you redeem Fund shares and then within 30
days decide to reinvest in the same Fund, you may do so at the net asset
value next computed after the reinvestment order is received, without a
sales charge. You may use the reinstatement privilege only once. The
Fund reserves the right to modify or eliminate this privilege.
To Open an Account:
800-368-2748 Prospectus
January 31, 1996
As Revised June 1, 1996
CALVERT WORLD
VALUES FUND, INC.
International Equity Fund
Performance and Prices:
Calvert Information Network
24 hours, 7 days a week
800-368-2745
Service for Existing Account:
Shareholders 800-368-2745
Brokers 800-368-2746
TDD for Hearing Impaired:
800-541-1524
Branch Office:
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
Registered, Certified
or Overnight Mail:
Calvert Group
c/o NFDS, 6th Floor
1004 Baltimore
Kansas City, MO 64105
Calvert Group Web-Site
Address: http://www.calvertgroup.com
PRINCIPAL UNDERWRITER
Calvert Distributors, Inc.
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
Table of Contents
Fund Expenses
Financial Highlights
Investment Objective and Policies
Risk Factors
Investment Techniques and Related Risks
Social Screens
Total Return
Management of the Fund
SHAREHOLDER GUIDE:
How to Buy Shares
Net Asset Value
When Your Account Will Be Credited
Exchanges
Other Calvert Group Services
How to Sell Your Shares
Dividends and Taxes
Exhibit A - Reduced Sales Charges
