Page 1 of ____
SEC Registration Nos.
33-45829 and 811-06563
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-1A
REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OF 1933
Post-Effective Amendment No. 5 XX
and/or
REGISTRATION STATEMENT UNDER THE
INVESTMENT COMPANY ACT OF 1940
Post-Effective Amendment No. 5 XX
Calvert World Values Fund, Inc.
(Exact Name of Registrant as Specified in Charter)
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
(Address of Principal Executive Offices)
Registrant's Telephone Number: (301) 951-4800
William M. Tartikoff, Esq.
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
(Name and Address of Agent for Service)
It is proposed that this filing will become effective
__ Immediately upon filing XX on January 31, 1996
pursuant to paragraph (b) pursuant to paragraph (b)
__ 60 days after filing __ on (date)
pursuant to paragraph (a) pursuant to paragraph (a)
of Rule 485.
Pursuant to the provisions of Rule 24f-2 under the Investment Company
Act of 1940, an indefinite number of shares of common stock are being
registered by this Registration Statement. On November 29, 1995,
Registrant filed a Rule 24f-2 notice for its fiscal year ended September
30, 1995.
Calvert World Values Fund, Inc.
Form N-1A Cross Reference Sheet
Item number Prospectus Caption
1. Cover Page
2. Fund Expenses
3. Financial Highlights
Yield or Total Return
4. Investment Objective and Policies
Management of the Fund
5. Management of the Fund
6. Alternative Sales Options
Management of the Fund
Dividends and Taxes
7. How to Buy Shares
Management of the Fund
Net Asset Value
Reduced Sales Charge
When Your Account Will Be Credited
Exchanges
8. Alternative Sales Options
How to Sell Your Shares
9. *
Statement of Additional
Information Caption
10. Cover Page
11. Table of Contents
12. General Information
13. Investment Objective and Policies
Investment Restrictions
Portfolio Transactions
14. Directors and Officers
15. Directors and Officers
16. Investment Advisor
Administrative Services
Independent Accountants and
Custodians
Method of Distribution
17. Portfolio Transactions
18. General Information
19. Purchase and Redemptions of Shares
Valuation of Shares
20. Tax Matters
21. Administrative Services
22 Calculation of Yield and
Total Return
23. Financial Statements
* Inapplicable or negative answer
PART A
PROSPECTUS
January 31, 1996
CALVERT WORLD VALUES FUND, INC.
CAPITAL ACCUMULATION FUND
4550 Montgomery Avenue, Bethesda, Maryland 20814
INVESTMENT OBJECTIVE
Calvert Capital Accumulation Fund (the "Fund") is a nondiversified
series of Calvert World Values Fund, Inc., an open-end management
investment company. The Fund seeks long-term capital appreciation by
investing primarily in the stock of small- to medium-sized companies
using the talent of multiple investment subadvisors. The market
capitalization of companies chosen for investment will generally range
between $100 million and $5 billion, but the Fund may also invest in
larger and smaller companies as deemed appropriate. It is the Advisor's
intent that on average, the market capitalization of the companies
represented in the Fund's portfolio will be mid-sized, with a slight
bias toward the growth-style of investing. Other investments may include
foreign securities, convertible issues, and certain options and futures
transactions. The Fund will take reasonable risks in seeking to achieve
its investment objective.
RESPONSIBLE INVESTING
To the extent possible, investments are made in enterprises that make a
significant contribution to our society through their products and
services and through the way they do business.
PURCHASE INFORMATION
The 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.
TO OPEN AN ACCOUNT
Call your investment professional, or complete and return the enclosed
Account Application. Minimum initial investment is $2,000 (may be lower
for certain retirement plans).
ABOUT THIS PROSPECTUS
Please read this Prospectus for information you should know before
investing, and keep it for future reference. A Statement of Additional
Information dated January 31, 1996) has been filed with the Securities
and Exchange Commission and is incorporated by reference. This free
Statement is available upon request from the Fund: 800-368-2748.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION, NOR HAS THE
FEDERAL OR ANY STATE SECURITIES COMMISSION PASSED ON THE ACCURACY OR
ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
SHARES OF THE 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
THE AMOUNT ORIGINALLY PAID BE HIGHER OR LOWER THAN
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)
Maximum Contingent Deferred Sales Charge None None
B. Annual Fund Operating Expenses (fiscal
year 1995)
(as a percentage of average net assets,
after expense reimbursement/waiver)
Management Fees 0.90% 0.90%
Rule 12b-1 Service and Distribution Fees 0.35% 1.00%
Other Expenses 1.15% 1.89%
Total Fund Operating Expenses<F1> 2.40% 3.79%
<F1> Net Fund Operating Expenses after reduction for fees paid indirectly
for Class C were 3.50%.
C. Example: You would pay the following expenses on a $1,000 investment,
assuming (1) 5% annual return; (2) redemption at the end of each period;
and (3) for Class A, payment of maximum initial sales charge at time of
purchase:
1 Year 3 Years 5 Years 10 Years
Class A $71 $119 $169 $308
Class C $38 $116 $195 $403
The example should not be considered a representation of past or future
expenses. Actual expenses and return may be higher or lower than those
shown.
Explanation of Table: The purpose of the table is to assist you in
understanding the various costs and expenses that an investor in the
Fund would bear directly (shareholder transaction costs) or indirectly
(annual fund operating expenses).
A. Shareholder Transaction Costs are charges you pay when you buy
or sell shares of the Fund. See "Reduced Sales Charges" to see if you
qualify for possible reductions in the sales charge. If you request a
wire redemption of less than $1,000, you will be charged a $5 wire fee.
B. Annual Fund Operating Expenses. Management Fees are paid by the Fund to
the Advisor for managing the Funds' investments and business affairs. Management
fees include the subadvisory fee paid by Calvert Asset Management Company, Inc.
(the "Advisor") to Portfolio Advisory Services, Inc. (the "Subadvisor"), and the
administrative service fee paid to Calvert Administrative Services Company. The
Management fees for the Fund are subject to a performance adjustment, after
January 1, 1997, which could cause the fee to be as high as 0.95% or as low as
0.85%, depending on performance. 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. Management
reimbursed or waived fees of .05% for Class A shares during fiscal 1995.
expenses for Class A shares have been restated to reflect expenses anticipated
in the current fiscal year. If Management had not reimbursed or waived fees, or
paid fees indirectly, the
current Other Expenses and Total Fund Operating Expenses for Class C shares
would have been 4.68% and 6.58%, respectively. The Investment Advisory Agreement
provides that the Advisor may, to the extent permitted by law, later recapture
any fees it deferred or expenses it assumed during the two prior years.
The Fund's Rule 12b-1 fees include an asset-based sales charge.
Thus, long-term shareholders in the Fund may pay more in total sales
charges than the economic equivalent of the maximum front-end sales
charge permitted by rules of the National Association of Securities
Dealers, Inc.
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, L.L.P., whose reports are
included in the Annual Reports 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
From Inception
(October 31, 1994) To
September 30, 1995
Net asset value, beginning of period $15.00
Income from investment operations
Net investment income (.11)
Net realized and unrealized gain
(loss) on investments 6.61
Total from investment operations 6.50
Distributions from
Net investment income (.02)
Net realized gains --
Total Distributions (.02)
Total increase (decrease) in
net asset value 6.48
Net asset value, end of period $21.48
Total return<F4> 43.40%
Ratio to average net assets:
Net investment income (loss) (1.55%)(a)
Total expenses<F5> 2.35%(a)
Net expenses 2.06%(a)
Expenses reimbursed and/or waived .05%(a)
Portfolio turnover 95%
Net assets, end of period (in thousands) $16,111
Number of shares outstanding
at end of period (in thousands) 750
<F4>Total return is not annualized and does not reflect deduction of
Class A front-end sales charges.
<F5>This ratio reflects total expenses before reduction for fees paid
indirectly.
(a) Annualized
Class C Shares
From Inception
(October 31, 1994) To
September 30, 1995
Net asset value, beginning of period $15.00
Income from investment operations
Net investment income (.15)
Net realized and unrealized gain
(loss) on investments 6.70
Total from investment operations 6.55
Distributions from
Net investment income --
Net realized gains --
Total Distributions --
Total increase (decrease) in
net asset value 6.55
Net asset value, end of period $21.55
Total return<F4> 43.67%
Ratio to average net assets:
Net investment income (loss) (3.13%)(a)
Total expenses<F5> 3.79%(a)
Net expenses 3.50%(a)
Expenses reimbursed and/or waived 2.79%(a)
Portfolio turnover 95%
Net assets, end of period (in thousands) $1,992
Number of shares outstanding
at end of period (in thousands) 92
<F4>Total return is not annualized and does not reflect deduction of
Class A front-end sales charges.
<F5>This ratio reflects total expenses before reduction for fees paid
indirectly.
(a) Annualized
INVESTMENT OBJECTIVE AND POLICIES
The Fund seeks to provide long-term capital appreciation by investing,
under normal market conditions, at least 65% of its assets in the equity
securities of small- to mid-sized companies.
The Fund seeks to provide long-term capital appreciation by investing
primarily in a nondiversified portfolio of the equity securities of
small- to mid-sized companies that are undervalued but demonstrate a
potential for growth. The Fund will rely on its proprietary research to
identify stocks that may have been overlooked by analysts, investors,
and the media, and which generally have a market value between $100
million and $5 billion, but which may be larger or smaller as deemed
appropriate. Investments may also include, but are not limited to,
preferred stocks, foreign securities, convertible securities, bonds,
notes and other debt securities. The Fund may use certain futures and
options, invest in repurchase agreements, and lend its portfolio
securities. The Fund will take reasonable risks in seeking to achieve
its investment objective. There is, of course, no assurance that the
Fund will be successful in meeting its objective since there is risk
involved in the ownership of all equity securities. The Fund's
investment objective is not fundamental and may be changed without
shareholder approval. The Fund will notify shareholders at least thirty
days in advance of a change in the investment objective of the Fund so
that shareholders may determine whether the Fund's goals continue to
meet their own.
The Fund has a pool of several portfolio managers from which to choose.
The Fund will use the services of several investment subadvisors as
portfolio managers in selecting companies in which to invest. The
portfolio managers will select investments by examining such factors as
company growth prospects, industry economic outlook, new product
development, management, security value, risk, and financial
characteristics. Because of this multi-manager approach, the Fund may
benefit from more than one investment strategy in seeking to achieve its
investment objective. The Fund may employ "growth managers," who
generally concentrate on stocks that have demonstrated, or are expected
to produce, earnings growth rates significantly greater than the market
as a whole, as well as "value managers," who tend to make stock
selections on the basis of perceived relative value as determined by a
defined model in a bottom-up approach. The Advisor will use the services
of a consultant to help it determine the appropriate mix of management
styles to be employed at any given time in an attempt to take advantage
of changing market conditions by allocating asset management among the
selection of talent in the Fund's management pool. Taking into account
the individual styles of the portfolio managers, the Advisor will
allocate assets to achieve the Fund's objective.
INVESTMENT TECHNIQUES AND RISKS
Nondiversified
There may be risks associated with the Fund being nondiversified.
Specificially, since a relatively high percentage of the assets of the
Fund may be invested in the obligations of a limited number of issuers,
the value of the shares of the Fund may be more susceptible to any
single economic, political or regulatory event than the shares of a
diversified fund.
Small Cap Issuers
The securities of small-cap issuers tend to be less actively traded than
the securities of larger issuers, may trade in a more limited volume,
and may change in value more abruptly than securities of larger
companies. Information concerning these securities may not be readily
available so that the companies may be less actively followed by stock
analysts. Small-cap issuers do not usually participate in market rallies
to the same extent as more widely-known securities, and they tend to
have a relatively higher percentage of insider ownership. There is no
limit on the percentage of assets that may be invested in small-cap
issuers.
Temporary defensive positions
Under normal market conditions the Fund strives to be fully invested in
securities. However, for temporary defensive purposes -- which may
include a lack of adequate purchase candidates or an unfavorable market
environment -- the Fund may invest up to 100% of its assets in cash or
cash equivalents. Cash equivalents include instruments such as, but not
limited to, U.S. government and agency obligations, certificates of
deposit, bankers' acceptances, time deposits, commercial paper,
short-term corporate debt securities and repurchase agreements.
The Fund currently intends to invest in no more than 5% of its net
assets in noninvestment-grade debt obligations
Although the Fund invests primarily in equity securities, it may invest
in debt securities. These debt securities may consist of
investment-grade and noninvestment-grade obligations. Investment-grade
obligations are those which, at the date of investment, are rated within
the four highest grades established by Moody's Investors Services, Inc.
(Aaa, Aa, A, or Baa) or by Standard and Poor's Corporation (AAA, AA, A,
or BBB), or, if unrated, are deemed to be of comparable quality by the
Advisor. Noninvestment-grade (high-yield/high-risk, or junk bond)
securities are those rated below Baa or BBB, or unrated obligations that
the investment subadvisor has determined are not investment-grade; such
securities are speculative, and the Fund currently intends to limit such
investments to 5% of its net assets. The Fund will not buy debt
securities rated lower than C.
Interest-rate risk
All fixed income instruments are subject to interest-rate risk: that is,
if market interest rates rise, the current principal value of a bond
will decline. In general, the longer the maturity of the bond, the
greater the decline in value will be.
The Fund may use options and futures as defensive strategies
The Fund may attempt to reduce the overall risk of its investments by
using options and and futures contracts. An option is a legal contract
that gives the holder the right to buy or sell a specified amount of the
underlying interest at a fixed or determinable price (called the
exercise or strike price) upon exercise of the option. A futures
contract is an agreement to take delivery or to make delivery of a
standardized quantity and quality of a certain commodity during a
particular month in the future at a specified price. The Subadvisor will
make decisions whether to invest in these instruments based on market
conditions, regulatory limits and tax considerations. If this strategy
is used, the Fund may be required to cover assets used for this purpose
in a segregated account for the protection of shareholders. See the
Statement of Additional Information for more detail about these
strategies.
Risks of using defensive strategies
There can be no assurance that engaging in options, futures, or any
other defensive strategy will be successful. While defensive strategies
are designed to protect the Fund from potential declines, if the
Subadvisor misgauges market values, interest rates, or other economic
factors, the Fund may be worse off than had it not employed the
defensive strategy. While the Subadvisor attempts to determine price
movements and thereby prevent declines in the value of portfolio
holdings, there is a risk of imperfect or no correlation between price
movements of portfolio investments and instruments used as part of a
defensive strategy so that a loss is incurred. While defensive
strategies can reduce the risk of loss, they can also reduce the
opportunity for gain since they offset favorable price movements. The
use of defensive strategies may result in a disadvantage to the Fund if
the Fund is not able to purchase or sell a portfolio holding at an
optimal time due to the need to cover its transaction in its segregated
account, or due to the inability of the Fund to liquidate its position
because of its relative illiquidity.
Repurchase agreements
The Fund may engage in repurchase agreements. In a repurchase agreement,
the Fund buys a security subject to the right and obligation to sell it
back at a higher price. In order to minimize any risk involved, the Fund
engages in such transactions only with recognized securities dealers
determined by the Advisor to present a minimal credit risk. Repurchase
agreements are fully collateralized and always have a maturity of less
than one year.
The Fund may invest up to 25% of its assets in the securities of foreign
issuers, although it currently holds or intends to hold no more than 5%
of its assets in such securities
The Fund may purchase foreign securities directly, on foreign markets, or
those represented by American Depositary Receipts ("ADRs"), or other receipts
evidencing ownership of foreign securities, such as International Depository
Receipts and Global Depository Receipts. ADRs are U.S. dollar-denominated and
traded in the U.S. on exchanges or over the counter. Foreign securities may
involve additional risks, including currency fluctuations, risks relating to
political or economic conditions, and the potentially less stringent investor
protection and disclosure standards of foreign markets. These factors could make
foreign investments, especially those in developing countries, less liquid and
more volatile. In addition, the costs of foreign investing, including
withholding taxes, brokerage commisions and custodial costs are generally higher
than for U.S. investments. By investing in ADRs rather than directly in foreign
issuers' stock, the Fund may avoid some currency and some liquidity risks. The
information available for ADRs is subject to the more uniform and more exacting
accounting, auditing and financial reporting standards of the domestic market or
exchange on which they are traded. See the Statement of Additional Information
for more information on investing in foreign securities.
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, although it does not currently intend to lend more than
5% of its portfolio 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. 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.
High Social Impact Investments
The Fund has adopted a nonfundamental 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"). These securities are
typically illiquid and unrated and are generally considered
noninvestment-grade debt securities, which involve a greater risk of
default or price decline than investment-grade securities. Through
diversification and credit analysis and limited maturity, investment
risk can be reduced, although there can be no assurance that losses will
not occur. The High Social Impact Investments committee of the Board
identifies, evaluates and selects these investments, subject to
ratification by the Board.
SOCIAL SCREENS
The Fund carefully reviews company policies and behavior regarding
social issues important to quality of life:
Once securities are determined to fall within the investment objective
of the Fund and are deemed financially viable investments, they are
screened according to the social criteria described below. These social
screens are applied to potential investment candidates by the Advisor in
consultation with the Subadvisor.
The following criteria may be changed by the Fund's Board of Directors
without shareholder approval:
- -environment
- -human rights
- -weapons systems
- -nuclear energy
- -employee relations
- -product criteria
(1) The Fund avoids investing in companies that, in the Advisor's
opinion, have significant or historical patterns of violating
environmental regulations, or otherwise have an egregious environmental
record. Additionally, the Fund will avoid investing in nuclear power
plant operators and owners, or manufacturers of key components in the
nuclear power process.
(2) The Fund will not invest in companies that are significantly engaged
in weapons production. This includes weapons systems contractors and
major nuclear weapons systems contractors.
(3) The Fund will not invest in companies that, in the Advisor's
opinion, have significant or historical patterns of discrimination
against employees on the basis of race, gender, religion, age,
disability or sexual orientation, or that have major labor-management
disputes.
(4) The Fund will not invest in companies that are significantly
involved in the manufacture of tobacco or alcohol products. The Fund
will not invest in companies that make products or offer services that,
under proper use, in the Advisor's opinion, are considered harmful.
The Advisor will seek to review companies' overseas operations
consistent with the social criteria stated above.
While the Fund may invest in companies that exhibit positive social
characteristics, it makes no explicit claims to seek out companies with
such practices.
TOTAL RETURN
The Fund may advertise total return for each class of shares. Total
return is based on historical results and is not intended to indicate
future performance.
Total return is calculated separately for each class of shares. 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 charges, such as
mutual fund averages compiled by Lipper Analytical Services, Inc.
Further information about the Fund's performance is contained in its
Annual Report to Shareholders, which may be obtained without charge by
writing or telephoning the Fund.
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 Capital Accumulation Fund is a series of Calvert World Values Fund,
Inc. an open-end management investment company organized as a Maryland
corporation on February 14, 1992. The other series is the Global Equity
Fund, a socially-screened portfolio of equity securities from around the
world.
The Fund is not required to hold annual shareholder meetings, but
special meetings may be called for certain purposes such as electing
Directors, changing fundamental policies, or approving a management
contract. As a shareholder, you receive one vote for each share of
Capital Accumulation Fund you own, except that matters affecting classes
differently, such as Distribution Plans, will be voted on separately by
class.
Calvert Asset Management serves as Advisor to the Fund.
Calvert Asset Management Company, Inc. (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 Funds and reserves the right to compensate
broker-dealers in return for their promotional or administrative
services. The Fund pays all other operating expenses as noted in the
Statement of Additional Information.
Calvert Group is one of the largest investment management firms in the
Washington, D.C. area.
Calvert Group, Ltd., parent of the Fund's 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 representing more than
200,000 shareholder and depositor accounts.
The Advisor receives a fee based on a percentage of the Fund's assets
and the Fund's performance. From this fee it pays the Subadvisor.
The Investment Advisory Agreement between the Fund and the Advisor
provides that the Advisor is entitled to a base annual fee, payable
monthly, of 0.80% of the Fund's average daily net assets. For its
services during the fiscal year ended September 30, 1995, pursuant to
the Investment Advisory Agreement, the Advisor received an investment
advisory fee of 0.76% of the Fund's respective average daily net assets.
Additionally, during the year, the Advisor voluntarily waived fees or
assumed expenses of $3,256, which were not charged to the Fund. As of
January 1, 1997, the Advisor may earn (or have its fee reduced by) a
performance adjustment based on the extent to which performance of the
Fund exceeds or trails the Standard & Poor's 400 Mid-Cap Index:
Performance versus the Performance Fee
S&P 400 Mid-Cap Index Adjustment
10% to less than 25% 0.01%
25% to less than 40% 0.03%
40% or more 0.05%
The Advisor may in its discretion defer its fees or assume the Fund's
operating expenses. The Investment Advisory Agreement provides that the
Advisor may, to the extent permitted by law, recapture any fees it
defers or expenses it assumes through December 31, 1996. The Advisor has
until December 31, 1998 to recapture fees deferred or expenses
reimbursed during the previous two-year period.
The Fund uses a multi-manager approach.
The Fund has a pool of six investment subadvisors ("Subadvisors") ready
to manage the Fund's assets. The three Subadvisors listed below comprise
the current portfolio management team. See the Statement of Additional
Information for information on the other Subadvisors.
Subadvisor Ownership
Apodaca Johnston Hispanic American
Brown Capital African American
Fortaleza Asset Management Hispanic/Women
The Advisor has retained a consultant to make recommendations on
allocations to Subadvisors
The Advisor will select which Subadvisors will manage Fund assets at any
given time and the allocation of assets among the managers. The Advisor
has retained a consultant, Progress Investment Management Company, to
aid it in making these determinations. Progress is a California
state-certified minority business enterprise, registered as an
investment advisor with the Securities and Exchange Commission, that
evaluates and monitors emerging minority/women-owned investment
management firms.
Apodaca-Johnston Capital Management, Inc.
Apodaca-Johnston Capital Management, Inc. of San Francisco, California
is a small-cap growth manager that seeks to discover compelling
investment ideas by focusing on those entrepreneurial companies that
identify and capitalize on positive trends. It looks for companies that
are experiencing a powerful acceleration in earnings, exhibit a strong,
high quality balance sheet or decidedly improving financial statements
and demonstrate strong relative price strength.
Performance Index: Russell 2000
Portfolio Manager: Scott S. Johnston
Mr. Johnston is President and Chief Investment Officer of
Apodaca-Johnston. He earned a B.A. from the University of California at
Berkeley, and an M.B.A. from the University of Southern California. Mr.
Johnston was the Vice President and Senior Investment Officer of the
Trust Investment Department of San Diego Trust and Savings Bank from
1976 to 1981. He joined Security Pacific Corporation in 1981 where he
was the Managing Director and CEO of the Pacific Century Group, with
$2.5 billion in discretionary assets under management. In 1985 Mr.
Johnston founded Sterling Financial Group, an independent SEC-registered
investment advisory firm, which was merged into Apodaca-Johnston Capital
Management.
Portfolio Manager: Jerry C. Apodaca, Jr.
Mr. Apodaca is Vice President of Apodaca-Johnston. He earned a B.A. from
the University of New Mexico in 1983, and has had active business
experience since that time.
Brown Capital Management, Inc.
Brown Capital Management, Inc. of Baltimore, Maryland believes that
capital can be enhanced in times of opportunity and preserved in times
of adversity without timing the market. The firm uses a bottom-up
approach that incorporates growth-adjusted price earnings. Stocks
purchased are generally undervalued and have momentum, have EPS growth
rates greater than the market, are more profitable than the market, and
have relatively low price-earnings ratios.
Performance Index: Blended: 60% Russell 1000 Growth and 40% Russell 2000
Portfolio Manager: Eddie C. Brown
Mr. Brown is founder and President of Brown Capital Management. He has
over 22 years of investment experience, having served as a Vice
President and Portfolio Manager for 10 years at T. Rowe Price Associates
immediately prior to starting his own firm. Mr. Brown holds a B.S. in
Electrical Engineering from Howard University, an M.S. in Electrical
Engineering from New York University, and an M.S. in Business
Administration from the Indiana University School of Business.
Additionally, he is a professionally-designated Chartered Financial
Analyst (CFA) and Chartered Investment Counselor (CIC).
Mr. Brown is active in community affairs. He is currently a Commissioner
for Maryland Public Broadcasting (a Gubernatorial appointment), member
of the Board of Directors of the Baltimore Community Foundation (where
he chairs the investment committee for the foundation's $30 million
endowment), member of the Dean's Advisory Council of Indiana University
School of Business, and a member of The President's Roundtable.
Portfolio Manager: Joel Oppenheim
Mr. Oppenheim has had 24 years investment experience for institutions
including the State of Maryland, T. Rowe Price Associates, Inc., the
National Rural Electric Pension and Brown Capital Management. He holds a
B.S. in Economics and Juris Doctor from the University of Wisconsin, and
is a Chartered Financial Analyst (CFA).
Portfolio Manager: Robert E. Hall
Mr. Hall has over 30 years investment experience including 18 years with
T. Rowe Price Associates, Inc., seven years with Emerging Growth
Partners, Inc., and four years with The Investment Center prior to
joining Brown Capital Management. Mr. Hall is a former Trustee of the
Peabody Institute of Johns Hopkins University.
Fortaleza Asset Management, Inc.
Fortaleza Asset Management, Inc., of Chicago, Illinois, is a small-cap
growth manager that bases its investment principles on three key
elements: (1) a proprietary stock valuation system that incorporates
technical and market sentiment indicators to determine optimal buy
points; (2) an emphasis on the preservation of capital through the
implementation of a strict selling discipline to lock in capital gains
and reduce losses; and (3) a discipline that does not force equity
commitment in overvalued markets. The investment approach is based on a
bottom-up stock selection process.
Performance Index: Russell 2000
Portfolio Manager: Margarita Perez
Ms. Perez is the founder, President and Portfolio Manager of Fortaleza,
and has over 13 years of investment experience. Prior to forming
Fortaleza, Ms. Perez was Vice President and Portfolio Manager for
Monetta Financial Services, Inc., where she was directly involved in the
management of equity accounts totalling in excess of $100 million.
Ms. Perez is a native of Puerto Rico and has lived in the Chicago area
since the late 1960s. She earned an MBA from DePaul University School of
Commerce. Ms. Perez is a member of various professional organizations
including the American Institute of CPAs, National Society of Hispanic
MBAs, Association for Investment Management and Research (AIMR), and the
National Association of Securities Professionals (NASP). She is also a
trustee of the Chicago Historical Society.
Portfolio Manager: James Boves
Mr. Boves brings over 25 year of investment management and research
experience to Fortaleza. He has a master's degree in Economics from
Northern Illinois University and is a member of the Investment Analysts
Society in Chicago.
Subadvisory compensation
The Investment Subadvisory Agreement between the Advisor and each of the
Subadvisors provides that the Subadvisors currently managing Fund assets
are entitled to a base Subadvisory fee of 0.25% of that portion of the
Fund's average daily net assets managed by the Subadvisor, paid by the
Advisor out of the fee the Advisor receives from the Fund. As of January
1, 1997, each Subadvisor may earn (or have its base fee reduced by) a
performance adjustment based on the extent to which performance of the
Fund exceeds or trails the index agreed on with the Advisor:
Performance versus Performance Fee
the Index Adjustment
10% to less than 25% 0.02%
25% to less than 40% 0.05%
40% or more 0.10%
Payment by the Fund of a performance adjustment will be conditioned on:
(1) the performance of the Fund as a whole having exceeded the S&P 400
Mid-Cap Index; and (2) payment of the performance adjustment not causing
the Fund's performance to fall below the S&P 400 Mid-Cap Index. The
performance adjustment will be paid by the Fund to the Advisor, which
will then pass it on to the Subadvisor.
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 average daily net assets.
Calvert Distributors, Inc. serves as underwriter to market the Fund's
shares.
Calvert Distributors, Inc. ("CDI") is the Fund's principal underwriter
and distributor. Under the terms of its underwriting agreement with the
Fund, CDI markets and distributes the Fund's shares and is responsible
for payment of commissions and service fees to broker-dealers, banks,
and financial services firms, preparation of advertising and sales
literature, and printing and mailing of prospectuses to prospective
investors.
The transfer agent keeps your account records.
Calvert Shareholder Services, Inc. is the Fund's transfer, dividend
disbursing and shareholder servicing agent.
SHAREHOLDER GUIDE
Opening An Account
You can buy shares of the Fund in several ways.
An account application accompanies 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 three classes of shares:
Class A Shares - Front End Load Option
Class A shares are sold with a front-end sales charge at the time of
purchase. Class A shares are not subject to a sales charge when they are
redeemed.
Class C shares - Level Load Option
Class C shares are sold without a sales charge at the time of purchase
or redemption.
Class C shares have higher expenses than Class A shares
The Fund bears some of the costs of selling its shares under
Distribution Plans adopted with respect to its Class A and Class C
shares pursuant to Rule 12b-1 under the 1940 Act. Payments under the
Class A Distribution Plan are limited to up to 0.35% annually of the
average daily net asset value of Class A shares. The Class C
Distribution Plan provides for the payment of an annual distribution fee
to CDI of up to 0.75%, plus a service fee of up to 0.25%, for a total of
1.00% of the average daily net assets.
Considerations for deciding which class of shares to buy
Income distributions paid by the Fund with respect to Class B and Class
C shares will generally be less than those paid with respect to Class A
shares. You should consider Class A shares if you qualify for a reduced
sales charge under Class A. Class A shares may also be more appropriate
for larger accounts or if you plan to hold the shares for several years.
Class C shares are not available for investments of $1 million or more.
Class A Shares
Class A shares are offered at net asset value plus a front-end sales
charge as follows:
Concession to
As a % of Dealers as a %
As a % of Net Amount of Amount
Amount of Investment Offering Price Invested 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 according to one of the following methods: (1) CDI may pay
broker-dealers, on a monthly basis for 12 months, an annual rate of
0.30%. Payments will be made monthly at the rate of 0.025% of the amount
of the investment, less redemptions; (2) CDI may pay broker-dealers
0.25% of the amount of the purchase; however, CDI reserves the right to
recoup any portion of the amount paid to the broker-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 rate of 0.35% of the average daily net asset value of Class A
shares, to pay expenses associated with the distribution and servicing
of Class A shares. Amounts paid by the Fund to CDI under the Class A
Distribution Plan are used to pay to broker-dealers and others,
including CDI salespersons who service accounts, service fees at an
annual rate of up to 0.25% of the average daily net asset value of Class
A shares, and 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, Class A
Distribution Plan expenses for the Fund were 0.35%.
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 broker-dealers and other selling
firms quarterly compensation at an annual rate of up to 0.75%, plus a
service fee of up to 0.25%, of the average daily net asset value of each
share sold by such others. During the fiscal year ended September 30,
1995, Class C Distribution Plan expenses for the Fund were 1.00%.
Arrangements with Broker-Dealers and Others
CDI may also pay additional concessions, including non-cash promotional
incentives, such as merchandise or trips, to dealers employing
registered representatives who have sold or are expected to sell a
minimum dollar amount of shares of the Fund and/or shares of other Funds
underwritten by CDI. CDI may make expense reimbursements for special
training of a dealer's registered representatives, advertising or
equipment, or to defray the expenses of sales contests. CDI may receive
reimbursement of eligible marketing and distribution expenses from the
Fund's Rule 12b-1 Distribution Plan.
Dealers or others may receive different levels of compensation depending
on which class of shares they sell. Payments pursuant to a Distribution
Plan are included in the operating expenses of the class.
HOW TO BUY SHARES
(BE SURE TO SPECIFY WHICH CLASS YOU ARE BUYING)
Method New Accounts Additional Investments
By Mail $2,000 minimum $250 minimum
Please make your check Please make your check
payable to the Fund and payable to the Fund and
mail it with your mail it with your
application to: investment slip to:
Calvert Group Calvert Group
4550 Montgomery Avenue P.O. Box 64146
Suite 1000N Baltimore, Maryland
Bethesda, Maryland 20814 21264-4146
West Coast Investors
use:
Calvert Group
P.O. Box 883610
San Francisco, CA
94188-3610
By Registered, Certified, or Overnight Mail:Calvert Group
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
Through Your Broker $2,000 minimum $250 minimum
At the Calvert Visit the Calvert Branch Office to make investments
Branch Office by check. See back cover page for the address.
FOR ALL OPTIONS BELOW, PLEASE CALL YOUR BROKER, OR CALVERT GROUP AT
800-368-2745
By Exchange $2,000 minimum $250 minimum
(From your account in another Calvert Group Fund)
When opening an account by exchange, your new account must be
established with the same name(s), address and taxpayer identification
number as your existing Calvert account.
By Bank Wire $2,000 minimum $250 minimum
By Calvert Money Not Available for $50 minimum
Controller* Initial Investment
*Please allow sufficient time for Calvert Group to process your initial
request for this service, normally 10 business days. The maximum
transaction amount is $300,000, and your purchase request must be
received by 4:00 p.m. Eastern time.
NET ASSET VALUE
Net asset value per share ("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 the Fund's investments.
Portfolio 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.
The NAV is calculated at the close of the Fund's business day, which
coincides with the closing of the regular session of the New York Stock
Exchange (normally 4:00 p.m. Eastern time). The Fund is open for
business each day the New York Stock Exchange is open. All purchases of
Fund shares will be confirmed and credited to your account in full and
fractional shares (rounded to the nearest 1/1000 of a share).
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 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 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 proceeds of redemptions against
those funds until it is reasonably satisfied that the purchase is
collected (normally 10 business days). To avoid this collection period,
you can wire federal funds from your bank, which may charge you a fee.
Certain financial institutions or broker-dealers which have entered into
a sales agreement with CDI may enter confirmed purchase orders on behalf
of customers by phone, with payment to follow within a 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, to protect a Fund's performance and to minimize
costs, Calvert Group discourages frequent exchanges and may prohibit
additional purchases of Fund shares by persons engaged in too many
short-term trades. Before you make an exchange from a Fund or Portfolio,
please note the following:
Call your broker or a Calvert representative for information
and a prospectus for any of Calvert's other Funds registered in your
state. Read the prospectus of the Fund or Portfolio into which you want
to exchange for relevant information, including class offerings.
Each exchange represents the sale of shares of one Fund and the purchase
of shares of another. Therefore, you could realize a taxable gain or
loss on the transaction.
Complete and sign an application for an account in that Fund or
Portfolio, taking care to register your new account in the same name and
taxpayer identification number as your existing Calvert account(s).
Exchange instructions may then be given by telephone if telephone
redemptions have been authorized and the shares are not in certificate
form.
Shares on which you have already paid a sales charge at Calvert
Group 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
Portfolio 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 total return quotations and prices
Calvert Group has a round-the-clock telephone service that lets existing
customers use a push button phone to obtain prices, performance
information, 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 Calvert Group account with one phone call. Allow one or
two business days after the call for the transfer to take place; for
money recently invested, allow normal check clearing time (up to 10
business days) before redemption proceeds are sent to your bank.
You may also arrange systematic monthly or quarterly investments
(minimum $50) into your Calvert Group account. After you give us proper
authorization, your bank account will be debited to purchase Fund
shares. A debit entry will appear on your bank statement. 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 Group
account, call your broker or Calvert Group 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 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, trust company, savings and loan association,
credit union, 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 may be modified in these programs, and administrative charges
may be imposed by the broker-dealer or financial institution 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
acceptable. Remember that the Fund may hold payment on the redemption of
your shares until it is reasonably satisfied that investments made by
check or by Calvert Money Controller have been collected (normally up to
10 business days). The Fund reserves the right to redeem in kind (i.e.,
to give you the value of your redemption in portfolio securities instead
of in cash).
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 per Fund, per class.
Please maintain a balance in your account of at least $1,000, per class.
If, due to redemptions, the account falls below $1,000, or you fail to
invest at least $1,000, it may be closed and the proceeds mailed to you
at the address of record. You will have 30 days notice that your
account will be closed unless you make an additional investment to
increase your account balance to the $1,000 minimum.
By Mail To:
Calvert Group
P.O. Box 419544
Kansas City, MO
64179-6544
You may redeem available shares from your account at any time by sending
a letter of instruction, including your name, account and Fund number,
the number of shares or dollar amount, and where you want the money to
be sent. Additional requirements, below, may apply to your account. The
letter of instruction must be signed by all required authorized signers.
If you want the money to be wired to a bank not previously authorized,
then a voided bank check must be enclosed with your letter. If you do
not have a voided check or if you would like funds sent to a different
address or another person, your letter must be signature guaranteed.
Type of Registration Requirements
Corporations, Associations Letter of
instruction and a
corporate
resolution, signed
by person(s)
authorized to act on
the account,
accompanied by
signature
guarantee(s).
Trusts Letter of instruction signed by the Trustee(s) (as Trustee),
with a signature
guarantee. (If the
Trustee's name is
not registered on
your account,
provide a copy of
the trust document,
certified within the
last 60 days.)
By Telephone
Please call 800-368-2745. You may redeem shares from your account by
telephone and have your money mailed to your address of record or wired
to an address or bank you have previously authorized. A charge of $5 is
imposed on wire transfers of less than $1,000. See "Telephone
Transactions" 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. 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). You may also
authorize automatic fixed amount redemptions by Calvert Money
Controller. All requests must be received by 4:00 p.m. Eastern time.
Accounts cannot be closed by this service.
Exchange to Another Calvert Group Fund
You must meet the minimum investment requirement of the other Calvert
Group Fund or Portfolio. 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 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 the Fund's net short-term
capital gains (treated as dividends for tax purposes) and its 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 will generally be higher for Class A shares.
Dividend and Distribution Payment Options
Dividends and any distributions are automatically reinvested in the same
Fund at net asset value (no sales charge), unless you elect to have the
dividends of $10 or more paid in cash (by check or by Calvert Money
Controller). Dividends and distributions may be automatically invested
in an identically registered account with the same account number in any
other Calvert Group Fund at net asset value. If reinvested in the same
Fund account, new shares will be purchased at net asset value on the
reinvestment 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 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. On the record date for a
distribution, the Fund's share value is reduced by the amount of the
distribution. If you buy shares just before the record date ("buying a
dividend") you will pay the full price for the shares and then receive a
portion of the price back as a taxable distribution.
Federal Taxes
The Fund normally distributes all net income and capital gain to
shareholders. These distributions are taxable to you regardless of
whether they are taken in cash or reinvested. Distributions of net
investment income are taxable as ordinary income; distributions of
long-term capital gains are taxable as long-term capital gains
regardless of how long you have held the shares. Dividends and
distributions declared during October, November or December and paid in
January of the following year are taxable in the year they are declared.
The Fund will mail you Form 1099-DIV in January indicating the federal
tax status of your dividends. If distributions exceed the Fund's net
investment income and capital gain for the year, the excess will reduce
your tax basis for your shares in the Fund.
You may realize a capital gain or loss when you sell or exchange shares.
If you sell or exchange your Fund shares you will have a short or
long-term capital gain or loss, depending on how long you owned the
shares which were sold. In January, the Fund will mail you Form 1099-B
indicating the proceeds from all sales, including exchanges. You should
keep your annual year-end account statements to determine the cost
(basis) of the shares to report on your tax returns.
Taxpayer Identification Number
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 and
certain redemptions. In addition, you may be subject to a fine. You will
also be prohibited from opening another account by exchange. If this TIN
information is not received within 60 days after your account is
established, your account may be redeemed 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 the 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 used to fund those plans, 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: Prospectus
800-368-2748 January 31, 1996
Performance and Prices:
Calvert Information Network CALVERT WORLD VALUES FUND, INC.
24 hours, 7 days a week CAPITAL ACCUMULATION FUND
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
Investment Objective and Policies
Investment Techniques and 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)
<PAGE>
Part B
CALVERT WORLD VALUES FUND, INC.
CAPITAL ACCUMULATION FUND
Statement of Additional Information
January 31, 1996
INVESTMENT ADVISOR TRANSFER AGENT
Calvert Asset Management Company, Inc. Calvert Shareholder Services, Inc.
4550 Montgomery Avenue 4550 Montgomery Avenue
Suite 1000N Suite 1000N
Bethesda, Maryland 20814 Bethesda, Maryland 20814
INDEPENDENT ACCOUNTANTS PRINCIPAL UNDERWRITER
Coopers & Lybrand, L.L.P. Calvert Distributors, Inc.
217 Redwood Street 4550 Montgomery Avenue
Baltimore, Maryland 21202-3316 Suite 1000N
Bethesda, Maryland 20814
-------------------------------------------
TABLE OF CONTENTS
Investment Objective and Policies 1
Investment Restrictions 9
Purchase and Redemption of Shares 8
Reduced Sales Charges (Class A) 9
Net Asset Value 9
Calculation of Total Return 9
Advertising 10
Dividends and Taxes 10
Directors and Officers 13
Investment Advisor and Subadvisors 14
Transfer and Shareholder Servicing Agent 16
Method of Distribution 16
Portfolio Transactions 17
Independent Accountants and Custodians 17
General Information 18
Financial Statements 18
Appendix 18
--------------------------------------------
STATEMENT OF ADDITIONAL INFORMATION-January 31, 1996
CALVERT WORLD VALUES FUND, INC.
CAPITAL ACCUMULATION FUND
4550 Montgomery Avenue, Bethesda, Maryland 20814
- --------------------------------------------------------------------------
New Account (800) 368-2748 Shareholder (800) 368-2745
- --------------------------------------------------------------------------
- --------------------------------------------------------------------------
Information:(301) 951-4820 Services: (301) 951-4810
- --------------------------------------------------------------------------
Broker (800) 368-2746 TDD for the Hearing-
==========================================================================
Services: (301) 951-4850 Impaired: (800) 541-1524
==========================================================================
This Statement of Additional Information is not a prospectus.
Investors should read the Statement of Additional Information in
conjunction with the Fund's Prospectus, dated January 31, 1996, which
may be obtained free of charge by writing the Fund at the above address
or calling the Fund.
==========================================================================
INVESTMENT OBJECTIVE AND POLICIES
==========================================================================
The Fund seeks to provide long-term capital appreciation by
investing primarily in the equity securities of small- to mid-sized
companies that are undervalued but demonstrate a potential for growth.
Currently, and for the foreseeable future, the Advisor manages the Fund
as a mid-cap fund, with a slight bias toward growth style. The Fund will
rely on its proprietary research to identify stocks that may have been
overlooked by analysts, investors, and the media, and which generally
have a market value between $100 million and $5 billion, but which may
be larger or smaller as deemed appropriate. The investment style of the
Fund can be shown graphically as follows: (insert grid box here)
large
value
growth
small
Investments may also include, but are not limited to, preferred
stocks, foreign securities, convertible securities, certain options and
futures transactions, bonds, notes and other debt securities The Fund
will take reasonable risks in seeking to achieve its investment
objective. There is, of course, no assurance that the Fund will be
successful in meeting its objective since there is risk involved in the
ownership of all equity securities. The Fund's investment objective is
not fundamental and may be changed without shareholder approval.
Defensive Strategies
The Fund may employ certain defensive strategies (generally
options and futures contracts) in an attempt to protect against the
decline of its investments. An option is a legal contract that gives the
holder the right to buy or sell a specified amount of the underlying
interest at a fixed or determinable price (called the exercise or strike
price) upon exercise of the option. A futures contract is an agreement
to take delivery or to make delivery of a standardized quantity and
quality of a certain commodity during a particular months in the future
at a specified price. By buying or selling futures contracts --
contracts that establish a price level at a given time for items to be
delivered later -- amounts to insurance against adverse price changes,
or "hedging."
The Fund may purchase put and call options, and write (sell)
covered put and call options, on equity and debt securities, foreign
currencies and stock or debt indices. The Fund may purchase or write
both exchange-traded and OTC options. These strategies may also be used
with respect to futures.
Special Risks of Defensive Strategies
Successful use of defensive strategies depends on the ability
to predict movements of the overall securities, currency and interest
rate markets, which is a different skill than that required to select
equity and debt investments. There can be no assurance that a chosen
strategy will succeed.
There may not be an expected correlation between price
movements of a hedging instrument and price movements of the investment
being hedged, so that the Fund may lose money notwithstanding employment
of the hedging strategy.
While defensive strategies can reduce risk of loss by
offsetting the negative effect of unfavorable price movements, they can
also reduce the opportunity for gain by offsetting the positive effect
of a favorable price movement. If the variance is great enough, a
decline in the price of an instrument used for defensive purposes may
result in a loss to the Fund.
The Fund may be required to cover its assets in a segregated
account. If an investment is not able to be liquidated at the time the
Subadvisor believes it is best for the Fund to do so, the Fund might be
required to keep assets on reserve that it otherwise would not have had
to maintain. Similarly, it might have to sell a security at an
inopportune time in order to maintain the reserves.
Instruments used as part of a Defensive Strategy
The Fund may write covered call options and purchase call and
put options on securities and securities 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. 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.
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.
The Fund may enter into financial futures contracts and related
options as a hedge against anticipated changes in the market value of
portfolio securities or securities which it or the Fund intends 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 in which the Fund may invest
include 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.
Engaging in transactions in financial futures contracts
involves certain risks, such as the possibility of an imperfect
correlation between futures market prices and cash market prices and the
possibility that the Advisor or Subadvisor could be incorrect in its
expectations as to the direction or extent of various interest rate
movements or foreign currency exchange rates, in which case the Fund's
return might have been greater had hedging not taken place. There is
also the risk that a liquid secondary market may not exist. The risk in
purchasing an option on a financial futures contract is that the Fund
will lose the premium it paid. Also, there may be circumstances when the
purchase of an option on a financial futures contract would result in a
loss to the Fund while the purchase or sale of the contract would not
have resulted in a loss.
The Fund 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.
Noninvestment-grade (High Yield/High Risk - or Junk Bond) Debt Securities
The Fund may invest in lower quality debt securities (generally
those rated BB or lower by S&P or Ba or lower by Moody's), subject to
the Funds' investment policy which provides that they may not invest
more than 35% of their assets in securities rated below BBB by either
rating service, or in unrated securities determined by the Advisor to be
comparable to securities rated below BBB by either rating service. The
Fund currently intends to invest no more than 5% of its assets in debt
obligations. These securities have moderate to poor protection of
principal and interest payments and have speculative characteristics.
These securities involve greater risk of default or price declines due
to changes in the issuer's creditworthiness than investment-grade debt
securities. Because the market for lower-rated securities may be thinner
and less active than for higher-rated securities, there may be market
price volatility for these securities and limited liquidity in the
resale market. Market prices for these securities may decline
significantly in periods of general economic difficulty or rising
interest rates. Unrated debt securities may fall into the lower quality
category. Unrated securities usually are not attractive to as many
buyers as are rated securities, which may make them less marketable.
The quality limitation set forth in the investment policy is
determined immediately after the Fund's acquisition of a security.
Accordingly, any later change in ratings will not be considered when
determining whether an investment complies with the Fund's investment
policy. If an obligation held by the Fund is later downgraded, the
Fund's Advisor, under the supervision of the Fund's Board of Directors,
will consider whether it is in the best interest of the Fund's
shareholders to hold or to dispose of the obligation. Among the criteria
that may be considered by the Advisor and the Board are the probability
that the obligations will be able to make scheduled interest and
principal payments in the future, the extent to which any devaluation of
the obligation has already been reflected in the Fund's net asset value,
and the total percentage, if any, of obligations currently rated below
investment grade held by the Fund.
When purchasing high-yielding securities, rated or unrated, the
Subadvisor prepares its own careful credit analysis to attempt to
identify those issuers whose financial condition is adequate to meet
future obligations or is expected to be adequate in the future. Through
portfolio diversification and credit analysis, investment risk can be
reduced, although there can be no assurance that losses will not occur.
Foreign Securities
The Fund may purchase foreign securities. Foreign brokerage
commissions and the custodial costs associated with maintaining foreign
portfolio securities are generally higher than in the United States. Fee
expense may also be incurred on currency exchanges when the Fund changes
investments from one country to another or converts foreign securities
holdings into U.S. dollars. Foreign companies and foreign investment
practices are not subject to uniform accounting, auditing and financial
reporting standards and practices or regulatory requirements comparable
to those applicable to United States companies. There may be less public
information available about foreign companies.
United States Government policies have at times, in the past,
through imposition of interest equalization taxes and other
restrictions, discouraged United States investors from making certain
investments abroad. While such taxes or restrictions are not presently
in effect, they may be reinstituted from time to time as a means of
fostering a favorable United States balance of payments. In addition,
foreign countries may impose withholding and taxes on dividends and
interest.
Foreign Currency Transactions
Forward Foreign Currency Exchange Contracts. 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 ("Term") 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.
The Fund will not enter into such forward contracts or maintain
a net exposure in such contracts where it would be obligated to deliver
an amount of foreign currency in excess of the value of its portfolio
securities and other assets denominated in that currency. The Subadvisor
believes that it is important to have the flexibility to enter into such
forward contracts when it determines that to do so is in the Fund's best
interests.
Foreign Currency Options. A foreign currency option provides
the option buyer with the right to buy or sell a stated amount of
foreign currency at the exercise price at a specified date or during the
option period. A call option gives its owner the right, but not the
obligation, to buy the currency, while a put option gives its owner the
right, but not the obligation, to sell the currency. The option seller
(writer) is obligated to fulfill the terms of the option sold if it is
exercised. However, either seller or buyer may close its position during
the option period for such options any time prior to expiration.
A call rises in value if the underlying currency appreciates.
Conversely, a put rises in value if the underlying currency depreciates.
While purchasing a foreign currency option can protect the Fund against
an adverse movement in the value of a foreign currency, it does not
limit the gain which might result from a favorable movement in the value
of such currency. For example, if the Fund was holding securities
denominated in an appreciating foreign currency and had purchased a
foreign currency put to hedge against a decline in the value of the
currency, it would not have to exercise its put. Similarly, if the Fund
had entered into a contract to purchase a security denominated in a
foreign currency and had purchased a foreign currency call to hedge
against a rise in the value of the currency but instead the currency had
depreciated in value between the date of purchase and the settlement
date, it would not have to exercise its call but could acquire in the
spot market the amount of foreign currency needed for settlement.
Foreign Currency Futures Transactions. The Fund may use foreign
currency futures contracts and options on such futures contracts.
Through the purchase or sale of such contracts, it may be able to
achieve many of the same objectives attainable through the use of
foreign currency forward contracts, but more effectively and possibly at
a lower cost.
Unlike forward foreign currency exchange contracts, foreign
currency futures contracts and options on foreign currency futures
contracts are standardized as to amount and delivery period and are
traded on boards of trade and commodities exchanges. It is anticipated
that such contracts may provide greater liquidity and lower cost than
forward foreign currency exchange contracts.
Lending 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 one-third of the Fund's assets. Loans must
be secured continuously in the form of cash or cash equivalents such as
U.S. Treasury bills; the amount of the collateral must on a current
basis equal or exceed the market value of the loaned securities, and the
Fund must be able to terminate such loans upon notice at any time. The
Fund will exercise its right to terminate a securities loan in order to
preserve its right to vote upon matters of importance affecting holders
of the securities.
The advantage of such loans is that the Fund continues to
receive the equivalent of the interest earned or dividends paid by the
issuers on the loaned securities while at the same time earning interest
on the cash or equivalent collateral which may be invested in accordance
with the Fund's investment objective, policies and restrictions.
Securities loans are usually made to broker-dealers and other
financial institutions to facilitate their delivery of such securities.
As with any extension of credit, there may be risks of delay in recovery
and possibly loss of rights in the loaned securities should the borrower
of the loaned securities fail financially. However, the Fund will make
loans of its portfolio securities only to those firms the Advisor or
Subadvisor deems creditworthy and only on such terms the Advisor
believes should compensate for such risk. On termination of the loan the
borrower is obligated to return the securities to the Fund. The Fund
will 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.
==========================================================================
INVESTMENT RESTRICTIONS
==========================================================================
Fundamental Investment Restrictions
The Fund has adopted the following investment restrictions
which cannot be changed without the approval of the holders of a
majority of the outstanding shares of the Fund. As defined in the
Investment Company Act of 1940, this means the lesser of the vote of (a)
67% of the shares of the Fund at a meeting where more than 50% of the
outstanding shares are present in person or by proxy or (b) more than
50% of the outstanding shares of the Fund. The Fund may not:
1. With respect to 50% of its assets, purchase
securities of any issuer (other than obligations of, or
guaranteed by, the United States Government, its
agencies or instrumentalities) if, as a result, more
than 5% of the value of its total assets would be
invested in securities of that issuer. (The remaining
50% of its total assets may be invested without
restriction except to the extent other investment
restrictions may be applicable).
2. Concentrate 25% or more of the value of its
assets in any one industry; provided, however, that
there is no limitation with respect to investments in
obligations issued or guaranteed by the United States
Government or its agencies and instrumentalities, and
repurchase agreements secured thereby.
3. Make loans of more than one-third of the
assets of the Fund, or as permitted by law. The
purchase by the Fund of all or a portion of an issue of
publicly or privately distributed debt obligations in
accordance with its investment objective, policies and
restrictions, shall not constitute the making of a loan.
4. Underwrite the securities of other issuers,
except as permitted by the Board of Directors within
applicable law, and except to the extent that in
connection with the disposition of its portfolio
securities, the Fund may be deemed to be an underwriter.
5. Purchase from or sell to any of the Fund's
officers or directors, or companies of which any of
them are directors, officers or employees, any
securities (other than shares of beneficial interest of
the Fund), but such persons or firms may act as brokers
for the Fund for customary commissions.
6. Except as required in connection with
permissible options, futures and commodity activities
of the Fund, invest in commodities, commodity futures
contracts, or real estate, although it may invest in
securities which are secured by real estate or real
estate mortgages and securities of issuers which invest
or deal in commodities, commodity futures, real estate
or real estate mortgages and provided that it may
purchase or sell stock index futures, foreign currency
futures, interest rate futures and options thereon.
7. Invest in the shares of other investment
companies, except as permitted by the 1940 Act or other
applicable law, or pursuant to Calvert's nonqualified
deferred compensation plan adopted by the Board of
Directors in an amount not to exceed 10% or as
permitted by law.
8. Purchase more than 10% of the outstanding
voting securities of any issuer.
Nonfundamental Investment Restrictions
The Fund has adopted the following operating (i.e.,
non-fundamental) investment policies and restrictions which may be
changed by the Board of Directors without shareholder approval. The Fund
may not:
9. Purchase the securities of any issuer with
less than three years' continuous operation if, as a
result, more than 5% of the value of its total assets
would be invested in securities of such issuers.
10. Invest, in the aggregate, more than 15% of its
net assets in illiquid securities. Purchases of
securities outside the U.S. that are not registered
with the SEC or marketable in the U.S. are not per se
illiquid.
11. Invest, in the aggregate, more than 5% of its
net assets in the securities of issuers restricted from
selling to the public without registration under the
Securities Act of 1933, excluding restricted securities
eligible for resale pursuant to Rule 144A under that
statute. Purchases of securities outside the U.S. that
are not registered with the SEC or marketable in the
U.S. are not per se restricted.
12. Make short sales of securities or purchase any
securities on margin except that the Fund may obtain
such short-term credits as may be necessary for the
clearance of purchases and sales of securities. The
depositor payment by the Fund of initial or maintenance
margin in connection with financial futures contracts
or related options transactions is not considered the
purchase of a security on margin.
13. Purchase or retain securities of any issuer if
the officers, Directors of the Fund or its Advisors,
owning beneficially more than 1/2 of 1% of the
securities of such issuer, together own beneficially
more than 5% of such issuer's securities.
14. Invest in warrants if more than 5% of the
value of the Fund's net assets would be invested in
such securities.
15. Invest in interests in oil, gas, or other
mineral exploration or development programs or leases
although it may invest in securities of issuers which
invest in or sponsor such programs.
16. Borrow money, except from banks for temporary
or emergency purposes, and then only in an amount not
to exceed one-third of the Fund's total assets, or as
permitted by law. In order to secure any permitted
borrowings under this section, the Fund may pledge,
mortgage or hypothecate its assets.
17. Invest for the purpose of exercising control
or management of another issuer.
For purposes of the Fund's concentration policy contained in
restriction (2), above, the Fund intends to comply with the SEC staff
position that securities issued or guaranteed as to principal and
interest by any single foreign government are considered to be
securities of issuers in the same industry.
Any investment restriction which involves a maximum percentage
of securities or assets shall not be considered to be violated unless an
excess over the applicable percentage occurs immediately after an
acquisition of securities or utilization of assets and results therefrom.
==========================================================================
PURCHASE AND REDEMPTION OF SHARES
==========================================================================
Share certificates will not be issued unless requested in
writing by the investor. No charge will be made for share certificate
requests. No certificates will be issued for fractional shares.
Amounts redeemed by check redemption may be mailed to the
investor without charge. Amounts of more than $50 and less than $300,000
may be transferred electronically at no charge to the investor. Amounts
of $1,000 or more will be transmitted by wire without charge by the Fund
to the investor's account at a domestic commercial bank that is a member
of the Federal Reserve System or to a correspondent bank. A charge of $5
is imposed on wire transfers of less than $1,000. If the investor's bank
is not a Federal Reserve System member, failure of immediate
notification to that bank by the correspondent bank could result in a
delay in crediting the funds to the investor's bank account.
Telephone redemption requests which would require the
redemption of shares purchased by check or electronic funds transfer
within the previous 10 business days may not be honored. The Fund
reserves the right to modify the telephone redemption privilege.
New shareholders wishing to use the Fund's telephone redemption
procedure must so indicate on their Investment Applications and, if
desired, designate a commercial bank or securities broker and account to
receive the redemption proceeds. Existing shareholders who at any time
desire to arrange for the telephone redemption procedure, or to change
instructions already given, must send a written notice to the Fund, with
a voided check for the bank wiring instructions to be added. If a voided
check does not accompany the request, then the request must be signature
guaranteed by a commercial bank, savings and loan association, trust
company, member firm of any national securities exchange, or certain
credit unions. Further documentation may be required from corporations,
fiduciaries, pension plans, and institutional investors.
The Fund's redemption check normally will be mailed to the
investor on the next business day following the date of receipt by the
Fund of the written or telephone redemption request. If the investor so
instructs in the redemption request, the check will be mailed or the
redemption proceeds wired to a predesignated account at the investor's
bank. Redemption proceeds are normally paid in cash. However, at the
sole discretion of the Fund, the Fund has the right to redeem shares in
assets other than cash for redemption amounts exceeding, in any 90-day
period, $250,000 or 1% of the net asset value of the Fund, whichever is
less, or as allowed by law.
The right of redemption of Fund shares may be suspended or the
date of payment postponed for any period during which the New York Stock
Exchange is closed (other than customary weekend and holiday closings),
when trading on the New York Stock Exchange is restricted, or an
emergency exists, as determined by the SEC, or if the Commission has
ordered such a suspension for the protection of shareholders. Redemption
proceeds are normally mailed or wired the next business day after a
proper redemption request has been received unless redemptions have been
suspended or postponed as described above.
==========================================================================
REDUCED SALES CHARGES (CLASS A)
==========================================================================
The Fund imposes reduced sales charges for Class A shares in
certain situations in which the Principal Underwriter and the dealers
selling Fund shares may expect to realize significant economies of scale
with respect to such sales. Generally, sales costs do not increase in
proportion to the dollar amount of the shares sold; the per-dollar
transaction cost for a sale to an investor of shares worth, say, $5,000
is generally much higher than the per-dollar cost for a sale of shares
worth $1,000,000. Thus, the applicable sales charge declines as a
percentage of the dollar amount of shares sold as the dollar amount
increases.
When a shareholder agrees to make purchases of shares over a
period of time totaling a certain dollar amount pursuant to a Letter of
Intent, the Underwriter and selling dealers can expect to realize the
economies of scale applicable to that stated goal amount. Thus the Fund
imposes the sales charge applicable to the goal amount. Similarly, the
Underwriter and selling dealers also experience cost savings when
dealing with existing Fund shareholders, enabling the Fund to afford
existing shareholders the Right of Accumulation. The Underwriter and
selling dealers can also expect to realize economies of scale when
making sales to the members of certain qualified groups which agree to
facilitate distribution of Fund shares to their members. See "Exhibit A
- - Reduced Sales Charges" in the Prospectus.
==========================================================================
NET ASSET VALUE
==========================================================================
The net asset value per share of the Fund, the price at which
the Fund's shares are redeemed, is determined every business day as of
the close of the New York Stock Exchange (generally, 4:00 p.m., Eastern
time), and at such other times as may be necessary or appropriate. The
Fund does not determine net asset value on certain national holidays or
other days on which the New York Stock Exchange is closed: New Year's
Day, Presidents' Day, Good Friday, Memorial Day, Independence Day, Labor
Day, Thanksgiving Day, and Christmas Day.
The public offering price of the Fund's shares is the net asset
value per share (plus, for Class A shares, the applicable sales charge).
The net asset value per share is computed separately for each class by
dividing the value of the Fund's total assets, less its liabilities, by
the total number of shares outstanding for that class. The Fund's
securities are valued as follows: (a) securities for which market
quotations are readily available are valued at the most recent closing
price, mean between bid and asked price, or yield equivalent as obtained
from one or more market makers for such securities; (b) securities
maturing within 60 days are valued at cost, plus or minus any amortized
discount or premium, unless the Board of Directors determines such
method not to be appropriate under the circumstances; and (c) all other
securities and assets for which market quotations are not readily
available are fairly valued by the Advisor in good faith under the
supervision of the Board of Directors.
==========================================================================
CALCULATION OF TOTAL RETURN
==========================================================================
The Fund may, from time to time, advertise "total return."
Total return is calculated separately for each class. Total return is
computed by taking the total number of shares purchased by a
hypothetical $1,000 investment, after deducting the applicable sales
charge for Class A shares, adding all additional shares purchased within
the period with reinvested dividends and distributions, calculating the
value of those shares at the end of the period, and dividing the result
by the initial $1,000 investment. Note: "Total Return" when quoted in
the Financial Highlights section of the Fund's Prospectus and the Annual
Report to Shareholders, however, per SEC instructions, does not reflect
deduction of the sales charge, and corresponds to "overall" return as
referred to herein. For periods of more than one year, the cumulative
total return is then adjusted for the number of years, taking
compounding into account, to calculate average annual total return
during that period.
Total return is computed according to the following formula:
P(1 + T)n = ERV
where P = a hypothetical initial payment of $l,000 (less the maximum
sales charge imposed during the period calculated); T = total return; n
= number of years; and ERV = the ending redeemable value of a
hypothetical $1,000 payment made at the beginning of the period.
Performance is historical in nature and is not intended to
indicate future performance. All total return quotations reflect the
deduction of the Fund's maximum sales charge, except quotations of
"overall return" which do not reflect deduction of the sales charge.
Overall return, which will be higher than total return, should be
considered only by investors, such as participants in certain pension
plans, to whom the sales charge does not apply, or for purposes of
comparison only with comparable figures which also do not reflect sales
charges, such as Lipper averages. Thus, in the above formula, for
overall return P = the entire $1,000 hypothetical initial investment and
does not reflect deduction of any sales charge. Overall return may be
advertised for other periods, such as by quarter, or cumulatively for
more than one year.
Return for the Funds' shares for the period from inception
(October 31, 1994) to September 30, 1995 are as follows:
Class A Shares Class A Shares Class C Shares
Overall Return Cumulative Total Cumulative Total
Return Return
==========================================================================
Since Inception 43.40% 36.58% 43.67%
Total return, like net asset value per share, fluctuates in
response to changes in market conditions. Performance for any particular
time period should not be considered an indication of future return.
==========================================================================
ADVERTISING
==========================================================================
The Fund or its affiliates may provide information such as, but
not limited to, the economy, investment climate, investment principles,
sociological conditions and political ambiance. Discussion may include
hypothetical scenarios or lists of relevant factors designed to aid the
investor in determining whether the Fund is compatible with the
investor's goals. The Fund may list portfolio holdings or give examples
or securities that may have been considered for inclusion in the
Portfolio, whether held or not.
The Fund or its affiliates may supply comparative performance
data and rankings from independent sources such as Donoghue's Money Fund
Report, Bank Rate Monitor, Money, Forbes, Lipper Analytical Services,
Inc., CDA Investment Technologies, Inc., Wiesenberger Investment
Companies Service, Russell 2000/Small Stock Index, Mutual Fund Values
Morningstar Ratings, Mutual Fund Forecaster, Barron's, The Wall Street
Journal, and Schabacker Investment Management, Inc. Such averages
generally do not reflect any front- or back-end sales charges that may
be charged by Funds in that grouping. The Fund may also cite to any
source, whether in print or on-line, such as Bloomberg, in order to
acknowledge origin of information. The Fund may compare itself or its
portfolio holdings to other investments, whether or not issued or
regulated by the securities industry, including, but not limited to,
certificates of deposit and Treasury notes. The Fund, its Advisor, and
its affiliates reserve the right to update performance rankings as new
rankings become available.
==========================================================================
DIVIDENDS, DISTRIBUTIONS, AND TAXES
==========================================================================
The Fund declares and pays dividends from net investment income
on an annual basis. Distributions of realized net capital gains, if any,
are normally paid once a year; however, the Fund does not intend to make
any such distributions unless available capital loss carryovers, if any,
have been used or have expired. Dividends and distributions paid may
differ among the classes because of different expenses.
Certain options, futures contracts, and options on futures
contracts are "section 1256 contracts." Any gains or losses on section
1256 contracts are generally considered 60% long-term and 40% short-term
capital gains or losses ("60/40 gains or losses"). Also, section 1256
contracts held by the Fund at the end of each taxable year are treated
for federal income tax purposes as being sold on such date for their
fair market value. The resultant gains or losses are treated as 60/40
gains or losses. When the section 1256 contract is subsequently disposed
of, the actual gain or loss will be adjusted by the amount of the
year-end gain or loss. The use of section 1256 contracts may increase
the amount of short-term capital gain realized by the Fund and taxed as
ordinary income when distributed to shareholders.
Hedging transactions in options, futures contracts and
straddles or other similar transactions will subject the Fund to special
tax rules (including mark-to-market, straddle, wash sale and short sales
rules). The effect of these rules may be to accelerate income to the
Fund, defer losses to the Fund, cause adjustments in the holding periods
of the Fund's securities or convert short-term capital losses into
long-term capital losses. Hedging transactions may increase the amount
of short-term capital gain realized by the Fund which is taxed as
ordinary income when distributed to shareholders. The Fund may make one
or more of the various selections available under the Code with respect
to hedging transactions. If the Fund makes any of the elections, the
amount, character and timing of the recognition of gains or losses from
the affected positions will be determined under rules that vary
according to the elections made. The Fund will use its best efforts to
make any available elections pertaining to the foregoing transactions in
a manner believed to be in the best interests of the Fund. The 30%
limit on gains from the sale of securities held for less than three
months and the diversification requirements applicable to the Fund's
assets may limit the extent to which the Fund will be able to engage in
transactions in options, futures contracts, or options on futures
contracts.
The Fund's transactions in foreign currency-denominated debt
and equity securities, certain foreign currency options, futures
contracts, and forward contracts may give rise to ordinary income or
loss to the extent such income or loss results from fluctuations in the
value of the foreign currency concerned.
If more than 50% of the Fund's assets at year end consist of
the debt and equity securities of foreign corporations, the Fund may
elect to permit shareholders to claim a credit or deduction on their
income tax returns for their pro rata portion of qualified taxes paid by
the Fund to foreign countries. In such a case, shareholders will include
in gross income from foreign sources their pro rata shares of such
taxes. A shareholder's ability to claim a foreign tax credit or
deduction in respect of foreign taxes paid by the Fund may be subject to
certain limitations imposed by the Code, as a result of which a
shareholder may not get a full credit or deduction for the amount of
such taxes. Shareholders who do not itemize on their federal income tax
returns may claim a credit (but no deduction) for such foreign taxes.
Dividends and distributions may be subject to state and local
taxes. Dividends paid by the Fund from income attributable to interest
on obligations of the U.S. Government and certain of its agencies and
instrumentalities may be exempt from state and local taxes in certain
states. The Fund will advise shareholders of the proportion of its
dividends consisting of such governmental interest. Shareholders should
consult their tax advisors regarding the possible exclusion of this
portion of their dividends for state and local tax purposes.
Investors should note that the Internal Revenue Code may
require investors to exclude the initial sales charge, if any, paid on
the purchase of Fund shares from the tax basis of those shares if the
shares are exchanged for shares of another Calvert Group Fund within 90
days of purchase. This requirement applies only to the extent that the
payment of the original sales charge on the shares of the Fund causes a
reduction in the sales charge otherwise payable on the shares of the
Calvert Group Fund acquired in the exchange, and investors may treat
sales charges excluded from the basis of the original shares as incurred
to acquire the new shares.
The Fund is required to withhold 31% of any dividends or
redemption payments occurring in the Fund if: (a) the shareholder's
social security number or other taxpayer identification number ("TIN")
is not provided, or an obviously incorrect TIN is provided; (b) the
shareholder does not certify under penalties of perjury that the TIN
provided is the shareholder's correct TIN and that the shareholder is
not subject to backup withholding under section 3406(a)(1)(C) of the
Code because of underreporting (however, failure to provide
certification as to the application of section 3406(a)(1)(C) will result
only in backup withholding on dividends, not on redemptions); or (c) the
Fund is notified by the Internal Revenue Service that the TIN provided
by the shareholder is incorrect or that there has been underreporting of
interest or dividends by the shareholder. Affected shareholders will
receive statements at least annually specifying the amount withheld.
The Fund is required to report to the Internal Revenue Service
the following information with respect to each redemption transaction:
(a) the shareholder's name, address, account number and taxpayer
identification number; (b) the total dollar value of the redemptions;
and (c) the Fund's identifying CUSIP number.
Certain shareholders are exempt from the backup withholding and
broker reporting requirements. Exempt shareholders include:
corporations; financial institutions; tax-exempt organizations;
individual retirement plans; the U.S., a State, the District of
Columbia, a U.S. possession, a foreign government, an international
organization, or any political subdivision, agency or instrumentality of
any of the foregoing; U.S. registered commodities or securities dealers;
real estate investment trusts; registered investment companies; bank
common trust funds; certain charitable trusts; foreign central banks of
issue. Non-resident aliens, certain foreign partnerships and foreign
corporations are generally not subject to either requirement but may
instead be subject to withholding under sections 1441 or 1442 of the
Internal Revenue Code. Shareholders claiming exemption from backup
withholding and broker reporting should call or write the Fund for
further information.
Nondiversified Status
The Fund is a "nondiversified" investment company under the
Investment Act of 1940 (the "Act"), which means the Fund is not limited
by the Act in the proportion of its assets that may be invested in the
securities of a single issuer. A nondiversified fund may invest in a
smaller number of issuers than a diversified fund. Thus, an investment
in the Fund may, under certain circumstances, present greater risk of
loss to an investor than an investment in a diversified fund. However,
the Fund intends to conduct its operations so as to qualify to be taxed
as a "regulated investment company" for purposes of the Code, which will
relieve the Fund of any liability for federal income tax to the extent
its earnings are distributed to shareholders. To qualify for this
Subchapter M tax treatment, the Fund will limit its investments to
satisfy the Code diversification requirements so that, at the close of
each quarter of the taxable year, (i) not more than 25% of the fund's
assets will be invested in the securities of a single issuer or of two
or more issuers which the Fund controls and which are determined to be
engaged in the same or similar trades or businesses or related trades or
businesses, and (ii) with respect to 50% of its assets, not more than 5%
of its assets will be invested in the securities of a single issuer and
the Fund will not own more than 10% of the outstanding voting securities
of a single issuer. Investments in United States Government securities
are not subject to these limitations; while securities issued or
guaranteed by foreign governments are subject to the above tests in the
same manner as the securities of non-governmental issuers. The Fund
intends to comply with the SEC staff position that securities issued or
guaranteed as to principal and interest by any single foreign government
are considered to be securities of issuers in the same industry.
==========================================================================
DIRECTORS AND OFFICERS
==========================================================================
1CLIFTON S. SORRELL, JR., Chairman and Director. Mr. Sorrell
serves as President, Chief Executive Officer and Vice Chairman of
Calvert Group, Ltd. and as an officer and director of each of its
affiliated companies. He is a director of Calvert-Sloan Advisers,
L.L.C., and a trustee/director of each of the investment companies in
the Calvert Group of Funds.
JOHN G. GUFFEY, JR., Director. Mr. Guffey is chairman of the
Calvert Social Investment Foundation, organizing director of the
Community Capital Bank in Brooklyn, New York, and a financial consultant
to various organizations. In addition, he is a Director of the Community
Bankers Mutual Fund of Denver, Colorado, and the Treasurer and Director
of Silby, Guffey, and Co., Inc., a venture capital firm. Mr. Guffey is a
trustee/director of each of the other investment companies in the
Calvert Group of Funds, except for Calvert New World Fund, Inc., and
Acacia Capital Corporation. Address: 7205 Pomander Lane, Chevy Chase,
Maryland 20815.
TERRENCE J. MOLLNER, Ed.D, Director. Dr. Mollner is Founder and
Chairperson of Trusteeship Institute, Inc., a diverse foundation known
principally for its consultation to corporations converting to
cooperative employee-ownership. He served as a Trustee of the
Cooperative Fund of New England, Inc., and is now a member of its Board
of Advisors. Mr. Mollner also serves as Trustee for the Calvert Social
Investment Fund. He is also a founder and member of the Board of
Trustees of the Foundation for Soviet-American Economic Cooperation.
Address: 15 Edwards Square, Northampton, Massachusetts 01060.
RUSTUM ROY, Director. Mr. Roy is the Evan Pugh Professor of the
Solid State Geochemistry at Pennsylvania State University, and
Corporation Chair, National Association of Science, Technology, and
Society. Address: Material Research Laboratory, Room 102A, Pennsylvania
State University, University Park, Pennsylvania, 16802.
1 D. WAYNE SILBY, Esq., Director. Mr. Silby is a
trustee/director of each of the investment companies in the Calvert
Group of Funds, except for Calvert New World Fund, Inc., and Acacia
Capital Corporation. Mr. Silby is an officer, director and shareholder
of Silby, Guffey & Company, Inc., which serves as general partner of
Calvert Social Venture Partners ("CSVP"). CSVP is a venture capital firm
investing in socially responsible small companies. . He is also a
Director of Acacia Mutual Life Insurance Company. Address: 1715 18th
Street, N.W., Washington, D.C. 20009.
TESSA TENNANT, Director. Ms. Tennant is the head of green and
ethical investing for National Provident Investment Managers Ltd.
Previously, she was in charge of the Environmental Research Unit of
Jupiter Tyndall Merlin Ltd., and was the Director of the Jupiter Tyndall
Merlin investment managers. Address: 55 Calverley Road, Tunbridge Wells,
Kent, TN1 2UE, United Kingdom.
MOHAMMAD YUNUS, Director. Mr. Yunus is a Managing Director of
Grameen Bank in Bangladesh. Address: Grameen Bank, Mirpur Two, Dhaka
1216, Bangladesh.
1 RENO J. MARTINI, Senior Vice President. Mr. Martini is Senior
Vice President of Calvert Group, Ltd. and Senior Vice President and
Chief Investment Officer of Calvert Asset Management Company, Inc.
<F1> WILLIAM M. TARTIKOFF, Esq., Vice President and Secretary. Mr.
Tartikoff is an officer of each of the investment companies in the
Calvert Group of Funds, and is Senior Vice President, Secretary, and
General Counsel of Calvert Group, Ltd., and each of its subsidiaries.
Mr. Tartikoff is Vice President and Secretary of Calvert-Sloan Advisers,
L.L.C., and is an officer of Acacia National Life Insurance Company.
<F1> DANIEL K. HAYES, Vice President. Mr. Hayes is Vice President
of Calvert Asset Management Company, Inc. and is an officer of each of
the other investment companies in the Calvert Group of Funds.
<F1> RONALD M. WOLFSHEIMER, CPA, Treasurer. Mr. Wolfsheimer is
Senior Vice President and Controller of Calvert Group, Ltd. and an
officer of each of its subsidiaries and Calvert-Sloan Advisers, L.L.C.
He is also an officer of each of the other investment companies in the
Calvert Group of Funds.
<F1> SUSAN WALKER BENDER, Esq., Assistant Secretary. Ms. Bender is
Associate General Counsel of Calvert Group, Ltd. and an officer of each
of its subsidiaries and Calvert-Sloan Advisers, L.L.C. She is also an
officer of each of the other investment companies in the Calvert Group
of Funds.
<F2> BETH-ANN ROTH, Esq., Assistant Secretary. Ms. Roth is
Associate General Counsel of Calvert Group, Ltd., and an officer of each
of its subsidiaries and Calvert-Sloan Advisers, L.L.C. She is also an
officer of each of the other investment companies in the Calvert Group
of Funds.
<F1>"Interested persons" of the Fund under the Investment Company Act of
1940. Messrs. Sorrell, Tartikoff and Wolfsheimer and Mes. Bender and
Roth are affiliated persons of the Fund and its Principal Underwriter.
<F2>"Interested persons" of the Fund under the Investment Company Act of
1940. Messrs. Sorrell, Tartikoff and Wolfsheimer and Mes. Bender and
Roth are affiliated persons of the Fund and its Principal Underwriter.
The address of directors and officers, unless otherwise noted,
is 4550 Montgomery Avenue, Bethesda, Maryland 20814. Directors and
officers as a group own less than one percent of the total outstanding
shares of the Fund.
During fiscal 1995, Directors of the Fund not affiliated with
the Fund's Advisor were paid aggregate fees and expenses of $404.
Directors of the Fund not affiliated with the Fund's Advisor
may elect to defer receipt of all or a percentage of their fees and
invest them in any fund in the Calvert Family of Funds through the
Trustees Deferred Compensation Plan (shown as "Pension or Retirement
Benefits Accrued as part of Fund Expenses," below). Deferral of the fees
is designed to maintain the parties in the same position as if the fees
were paid on a current basis. Management believes this will have a
negligible effect on the Fund's assets, liabilities, net assets, and net
income per share, and will ensure that there is no duplication of
advisory fees.
Director Compensation Table
September 30, 1995 Aggregate Pension or Total Compensation
(unaudited Compensation from Retirement from Registrant
numbers) Registrant for Benefits Accrued and Fund Complex
service as as part of paid to
Name of Director Director Registrant Directors<F4>
............................................Expenses<F3>.......................
John G. Guffey, Jr. $______ $______ $______
Terrence J. Mollner $______ $______ $______
Rustum Roy $______ $______ $______
D. Wayne Silby $______ $______ $______
Tessa Tennant $______ $______ $______
Mohammad Yunus $______ $______ $______
==========================================================================
INVESTMENT ADVISOR AND SUB-ADVISORS
==========================================================================
The Fund's Investment Advisor is Calvert Asset Management
Company, Inc., 4550 Montgomery Avenue, 1000N, Bethesda, Maryland 20814,
a subsidiary of Calvert Group Ltd., which is a subsidiary of Acacia
Mutual Life Insurance Company of Washington, D.C. ("Acacia Mutual").
The Advisory Contract between the Fund and the Advisor was
entered into on May 21, 1992, and will remain in effect indefinitely,
provided continuance is approved at least annually by the vote of the
holders of a majority of the outstanding shares of the Fund or by the
Board of Directors of the Fund; and further provided that such
continuance is also approved annually by the vote of a majority of the
trustees of the Fund who are not parties to the Contract or interested
persons of parties to the Contract or interested persons of such
parties, cast in person at a meeting called for the purpose of voting on
such approval. The Contract may be terminated without penalty by either
party upon 60 days' prior written notice; it automatically terminates in
the event of its assignment.
<F3> Ms. Tennant has chosen to defer a portion of her compensation. Her
total deferred compensation, including dividends and capital
appreciation, was $3,481 as of September 30, 1995. Mr. Yunus has also
chosen to defer a portion of his compensation. His total deferred
compensation, including dividends and capital appreciation, was $10,082
as of September 30, 1995.
<F4> As of December 31, 1995. The Fund Complex consists of eight (8)
registered investment companies.
Under the Contract, the Advisor provides investment advice to
the Fund and oversees its day-to-day operations, subject to direction
and control by the Fund's Board of Directors. For its services, the
Advisor receives an annual base fee, payable monthly, of 0.80% of the
Fund's average daily net assets For the 1995 fiscal period, the Advisor
received a fee of $50,418, reimbursed $12,183, and voluntarily waived or
assumed $3,256 of expenses. The Advisor may recapture from (charge to)
the Fund any fees deferred or expenses reimbursed through December 31,
1996, to the extent permitted by law. Each year's current advisory fees
(incurred in that year) will be paid in full before any recapture for a
prior year is applied. Recapture then will be applied beginning with the
most recent year first.
The Advisor provides the Fund with investment supervision and
management, administrative services, office space, furnishes executive
and other personnel to the Fund, and may pay Fund advertising and
promotional expenses. The Advisor reserves the right to compensate
broker-dealers in consideration of their promotional or administrative
services. The Fund pays all other administrative and operating expenses,
including: custodial, registrar, dividend disbursing and transfer agency
fees; federal and state securities registration fees; salaries, fees and
expenses of directors, executive officers and employees of the Fund, who
are not ''affiliated persons" of the Advisor or the Subadvisors within
the meaning of the Investment Company Act of 1940; insurance premiums;
trade association dues; legal and audit fees; interest, taxes and other
business fees; expenses of printing and mailing reports, notices,
prospectuses, and proxy material to shareholders; annual shareholders'
meeting expenses; and brokerage commissions and other costs associated
with the purchase and sale of portfolio securities. The Advisor has
agreed to reimburse the Fund for all expenses (excluding brokerage,
taxes, interest, and all or a portion of distribution and certain other
expenses, to the extent allowed by state or federal law or regulation,
such as California Rule 260.140.84) exceeding the most restrictive
expense limitation in those states where the Fund's shares are qualified
for sale (currently 2.5% of the Fund's first $30 million of average net
assets, 2% of the next $70 million, and 1.5% of the excess over $100
million).
The Fund's current Subadvisors are described in the
Prospectus. See "Management of the Fund." The remaining pool of
Sub-Advisors are described below.
New Amsterdam Partners, L.P. is a mid-cap value investment
manager in New York, New York. New Amsterdam Partners is a quantitative
investment firm, evaluating investment opportunities by comparing
expected investment returns. The firm believes that the disciplined use
of their valuation techniques, in conjuunction with fundamental analysis
of companies, is the key to understanding and maximizing investment
returns. Michelle Clayman, General Partner of New Amersterdam, was a
founding partner of the company, which was started in 1986. Prior to
co-founding New Amsterdam, Ms. Clayman was a Vice President of Salomon
Brothers in charge of STOCKFACTS, an on-line computer system that
combines analytical tools for equity analysis and databases and was
designed and developed by Ms. Clayman. Ms. Clayman received her Bachelor
of Arts from Oxford University and an MBA from Stanford University. She
is a Chartered Financial Analyst (CFA) and is past President of the
Society of Quantitative Analysts. Keith Graham is Vice President and
Special Limited Partner of New Amsterdam. Before joining the company in
1987, Mr. Graham was an Assistant Treasurer at the Bankers Trust
Company, first in the Trust Administration Group and later in the
Investment Management Consulting Group. Mr. Graham holds an Associate of
Arts degree from Baruch College.
Seneca, Inc., of Basking Ridge, New Jersey, is a
value-oriented, medium-to-large capitalization equity manager with a
twelve-year performance record. The firm is majority-owned by six women
employees and a female director. The company employs a traditional low
P/E value approach enhanced by portfolio risk controls and selection of
only those securities experiencing upward revisions in analysts'
earnings estimates. Susan Saltus and Sandi Sweeney direct the investment
effort, drawing on more than 28 years of investment experience. Ms.
Saltus, CFA, is Chief Investment Officer and has 16 years investment
experience. Ms. Sweeney is a Portfolio Manager and has 12 years
investment experience.
Sturdivant & Co., Inc., of Clementon, New Jersey, seeks to
identify undervalued companies or companies that are undergoing
significant changes that will enhance shareholder value. The company
utilizes a conservative, disciplined and consistently-applied decision
making process designed to achieve lower risk than the market. Ralph
Sturdivant is Chairman and CEO who, prior to founding the firm was a
Vice President at Prudential-Bache Securities and an Account Executive
with Merrill Lynch. Mr. Sturdivant holds a Bachelor of Arts from Morgan
State University and is a member of the Financial Analysts of
Philadelphia. Albert Sturdivant is President and CIO, and was a
principal and manager of the capital markets division of Grigsby,
Brandford & Company prior to co-founding Sturdivant & Co. Mr. Sturdivant
holds a Bachelor of Science from Morgan State University, and earned an
MBA from the Wharton Business School of the University of Pennsylvania.
Administrative Services
Calvert Administrative Services Company ("CASC", an affiliate
of the Advisor, has been retained by the Fund to provide certain
administrative services necessary to the conduct of its affairs,
including the preparation of regulatory filings and shareholder reports,
the daily determination of its net asset value per share and dividends,
and the maintenance of its portfolio and general accounting records. For
providing such services, CASC receives an annual fee from the Fund of
0.10% of the Fund's average daily net assets. For the 1995 fiscal
period, CASC received $6,251 in administrative fees.
==========================================================================
TRANSFER AND SHAREHOLDER SERVICING AGENT
==========================================================================
Calvert Shareholder Services, Inc. ("CSSI"), a subsidiary of
Calvert Group, Ltd., and Acacia Mutual, has been retained by the Fund to
act as transfer agent, dividend disbursing agent and shareholder
servicing agent. These responsibilities include: responding to
shareholder inquiries and instructions concerning their accounts;
crediting and debiting shareholder accounts for purchases and
redemptions of Fund shares and confirming such transactions; updating of
shareholder accounts to reflect declaration and payment of dividends;
and preparing and distributing quarterly statements to shareholders
regarding their accounts. For such services, Calvert Shareholder
Services, Inc. receives compensation based on the number of shareholder
accounts and the number of shareholder transactions. During fiscal
period 1995, CSSI received $13,179 from the Fund.
==========================================================================
METHOD OF DISTRIBUTION
==========================================================================
The Fund has entered into an agreement with Calvert
Distributors, Inc. ("CDI") whereby CDI, acting as principal underwriter
for the Fund, makes a continuous offering of the Fund's securities on a
"best efforts" basis. Under the terms of the agreement, CDI is entitled
to receive reimbursement of distribution expenses pursuant to the
Distribution Plan (see below). For fiscal period 1995, CDI received
distribution fees of $21,748 under the Class A Distribution Plan. Of the
Class A distribution expenses paid in fiscal 1995, $11,730 was used to
compensate dealers for their share distribution promotional services,
and the remainder was used for the printing and mailing of prospectuses
and sales materials to investors (other than current shareholders). CDI
also receives the portion of the sales charge in excess of the dealer
reallowance. For the 1995 period, it received net sales charges of
$23,647.
Pursuant to Rule 12b-1 under the Investment Company Act of
1940, the Fund has adopted Distribution Plans (the "Plans") which
permits the Fund to pay certain expenses associated with the
distribution of its shares. Such expenses may not exceed, on an annual
basis, 0.35% of the Fund's Class A average daily net assets. Expenses
under the Fund's Class C Plan may not exceed, on an annual basis, 1.00%
of the average daily net assets of Class C. For the period from
inception (October 31, 1994) to September 30, 1995, Class C Distribution
Plan expenses totaled $4,448. That amount was used entirely to
compensate dealers distributing shares, and to compensate the
underwriter.
The Fund's Distribution Plans were approved by the Board of
Directors, including the Directors who are not "interested persons" of
the Fund (as that term is defined in the Investment Company Act of 1940)
and who have no direct or indirect financial interest in the operation
of the Plans or in any agreements related to the Plans. The selection
and nomination of the Directors who are not interested persons of the
Fund is committed to the discretion of such disinterested Directors. In
establishing the Plans, the Directors considered various factors
including the amount of the distribution expenses. The Directors
determined that there is a reasonable likelihood that the Plans will
benefit the Fund and its shareholders.
The Plans may be terminated by vote of a majority of the
non-interested Directors who have no direct or indirect financial
interest in the Plans, or by vote of a majority of the outstanding
shares of the Fund. Any change in the Plans that would materially
increase the distribution cost to the Fund requires approval of the
shareholders of the affected class; otherwise, the Plans may be amended
by the Directors, including a majority of the non-interested Directors
as described above. The Plans will continue in effect for successive
one-year terms provided that such continuance is specifically approved
by (i) the vote of a majority of the Directors who are not parties to
the Plans or interested persons of any such party and who have no direct
or indirect financial interest in the Plans, and (ii) the vote of a
majority of the entire Board of Directors.
Apart from the Plans, the Advisor and CDI, at their own expense,
may incur costs and pay expenses associated with the distribution of
shares of the Fund.
==========================================================================
PORTFOLIO TRANSACTIONS
==========================================================================
Portfolio transactions are undertaken on the basis of their
desirability from an investment standpoint. Investment decisions and
choice of brokers and dealers are made by the Fund's Advisor under the
direction and supervision of the Fund's Board of Directors.
The Fund's policy is to limit portfolio turnover to
transactions necessary to carry out its investment policies and to
obtain cash for redemption of its shares. Depending upon market
conditions, the Fund's turnover expressed as a percentage may in some
years exceed 100%, but is not expected to exceed 200%. For the 1995
fiscal period, the portfolio turnover rates of the Fund was 95%. In all
transactions, the Fund seeks to obtain the best price and most favorable
execution and selects broker-dealers on the basis of their professional
capability and the value and quality of their services. Broker-dealers
may be selected who provide the Fund with statistical, research, or
other information and services. Such broker-dealers may receive
compensation for executing portfolio transactions that is in excess of
the compensation another broker-dealer would have received for executing
such transactions, if the Advisor determines in good faith that such
compensation is reasonable in relation to the value of the information
and services provided. Although any statistical, research, or other
information or services provided by broker-dealers may be useful to the
Advisor, its dollar value is generally indeterminable and its
availability or receipt does not materially reduce the Advisor's normal
research activities or expenses. During fiscal 1995, no commissions were
paid to any officer or director of the Fund, or to any of their
affiliates.
The Advisor may also execute Fund transactions with or through
broker-dealers who have sold shares of the Fund. However, such sales
will not be a qualifying or disqualifying factor in a broker-dealer's
selection nor will the selection of any broker-dealer be based on the
volume of Fund shares sold.
==========================================================================
INDEPENDENT ACCOUNTANTS AND CUSTODIANS
==========================================================================
Coopers and Lybrand, L.L.P., has been selected by the Board of
Directors to serve as independent accountants of the Fund for fiscal
year 1996. State Street Bank & Trust Company, N.A., 225 Franklin Street,
Boston, MA 02110 acts as custodian of the Fund's investments. First
National Bank of Maryland, 25 South Charles Street, Baltimore, Maryland
21203 also serves as custodian of certain of the Fund's cash assets.
Neither custodian has a part in deciding the Fund's investment policies
or the choice of securities that are to be purchased or sold for the
Fund.
==========================================================================
GENERAL INFORMATION
==========================================================================
The Fund was organized as a Maryland Corporation on February
14, 1992. The other series of the Fund is the Calvert Global Equity Fund.
Each share represents an equal proportionate interest with each
other share and is entitled to such dividends and distributions out of
the income belonging to such class as declared by the Board. The Fund
offers two separate classes of shares: Class A and Class C. Each class
represents interests in the same portfolio of investments but, as
further described in the prospectus, each class is subject to differing
sales charges and expenses, which differences will result in differing
net asset values and distributions. Upon any liquidation of the Fund,
shareholders of each class are entitled to share pro rata in the net
assets belonging to that series available for distribution.
The Fund will send its shareholders confirmations of purchase
and redemption transactions, as well as periodic transaction statements
and unaudited semi-annual and audited annual financial statements of the
Fund's investment securities, assets and liabilities, income and
expenses, and changes in net assets.
The Prospectus and this Statement of Additional Information do
not contain all the information in the Fund's registration statement.
The registration statement is on file with the Securities and Exchange
Commission and is available to the public.
==========================================================================
FINANCIAL STATEMENTS
==========================================================================
The Fund's audited financial statements included in its Annual
Report to Shareholders dated September 30, 1995, are expressly
incorporated by reference and made a part of this Statement of
Additional Information. A copy of the Annual Report may be obtained free
of charge by writing or calling The Calvert Fund.
==========================================================================
APPENDIX
==========================================================================
Corporate Bond Ratings:
Description of Moody's Investors Service Inc.'s/Standard & Poor's bond
ratings:
Aaa/AAA: Best quality. These bonds carry the smallest degree of
investment risk and are generally referred to as "gilt edge." Interest
payments are protected by a large or by an exceptionally stable margin
and principal is secure. This rating indicates an extremely strong
capacity to pay principal and interest.
Aa/AA: Bonds rated AA also qualify as high-quality debt
obligations. Capacity to pay principal and interest is very strong, and
in the majority of instances they differ from AAA issues only in small
degree. They are rated lower than the best bonds because margins of
protection may not be as large as in Aaa securities, fluctuation of
protective elements may be of greater amplitude, or there may be other
elements present which make long-term risks appear somewhat larger than
in Aaa securities.
A/A: Upper-medium grade obligations. Factors giving security to
principal and interest are considered adequate, but elements may be
present which make the bond somewhat more susceptible to the adverse
effects of circumstances and economic conditions.
Baa/BBB: Medium grade obligations; adequate capacity to pay
principal and interest. Whereas they normally exhibit adequate
protection parameters, adverse economic conditions or changing
circumstances are more likely to lead to a weakened capacity to pay
principal and interest for bonds in this category than for bonds in
higher rated categories.
Ba/BB, B/B, Caa/CCC, Ca/CC: Debt rated in these categories is
regarded as predominantly speculative with respect to capacity to pay
interest and repay principal. The higher the degree of speculation, the
lower the rating. While such debt will likely have some quality and
protective characteristics, these are outweighed by large uncertainties
or major risk exposure to adverse conditions.
C/C: This rating is only for income bonds on which no interest
is being paid.
D: Debt in default; payment of interest and/or principal is in
arrears.
Commercial Paper Ratings:
MOODY'S INVESTORS SERVICE, INC.:
The Prime rating is the highest commercial paper rating
assigned by Moody's. Among the factors considered by Moody's in
assigning ratings are the following: (1) evaluation of the management of
the issuer; (2) economic evaluation of the issuer's industry or
industries and an appraisal of speculative-type risks which may be
inherent in certain areas; (3) evaluation of the issuer's products in
relation to competition and customer acceptance; (4) liquidity; (5)
amount and quality of long-term debt; (6) trend of earnings over a
period of ten years; (7) financial strength of a parent company and the
relationships which exist with the issuer; and (8) recognition by
management of obligations which may be present or may arise as a result
of public interest questions and preparations to meet such obligations.
Issuers within this Prime category may be given ratings 1, 2, or 3,
depending on the relative strengths of these factors.
STANDARD & POOR'S CORPORATION:
Commercial paper rated A by Standard & Poor's has the following
characteristics: (i) liquidity ratios are adequate to meet cash
requirements; (ii) long-term senior debt rating should be A or better,
although in some cases BBB credits may be allowed if other factors
outweigh the BBB; (iii) the issuer should have access to at least two
additional channels of borrowing; (iv) basic earnings and cash flow
should have an upward trend with allowances made for unusual
circumstances; and (v) typically the issuer's industry should be well
established and the issuer should have a strong position within its
industry and the reliability and quality of management should be
unquestioned. Issuers rated A are further referred to by use of numbers
1, 2 and 3 to denote the relative strength within this highest
classification.
LETTER OF INTENT
Date______________
Calvert Distributors, Inc.
4550 Montgomery Avenue
Bethesda, MD 20814
Ladies and Gentlemen:
By signing this Letter of Intent, or affirmatively marking the
Letter of Intent option on my Fund Account Application Form, I agree to
be bound by the terms and conditions applicable to Letters of Intent
appearing in the Prospectus and the Statement of Additional Information
for the Fund and the provisions described below as they may be amended
from time to time by the Fund. Such amendments will apply automatically
to existing Letters of Intent.
I intend to invest in the shares of: (Fund or Portfolio name*)
during the thirteen (13) month period from the date
of my first purchase pursuant to this Letter (which cannot be more than
ninety (90) days prior to the date of this Letter or my Fund Account
Application Form, whichever is applicable), an aggregate amount
(excluding any reinvestments of distributions) of at least fifty
thousand dollars ($50,000) which, together with my current holdings of
the Fund (at public offering price on date of this Letter or my Fund
Account Application Form, whichever is applicable), will equal or exceed
the amount checked below:
__ $50,000 __ $100,000 __ $250,000 __ $500,000 __ $1,000,000
Subject to the conditions specified below, including the terms
of escrow, to which I hereby agree, each purchase occurring after the
date of this Letter will be made at the public offering price applicable
to a single transaction of the dollar amount specified above, as
described in the Fund's prospectus. No portion of the sales charge
imposed on purchases made prior to the date of this Letter will be
refunded.
I am making no commitment to purchase shares, but if my
purchases within thirteen months from the date of my first purchase do
not aggregate the minimum amount specified above, I will pay the
increased amount of sales charges prescribed in the terms of escrow
described below. I understand that 4.75% of the minimum dollar amount
specified above will be held in escrow in the form of shares (computed
to the nearest full share). These shares will be held subject to the
terms of escrow described below.
From the initial purchase (or subsequent purchases if
necessary), 4.75% of the dollar amount specified in this Letter shall be
held in escrow in shares of the Fund by the Fund's transfer agent. For
example, if the minimum amount specified under the Letter is $50,000,
the escrow shall be shares valued in the amount of $2,375 (computed at
the public offering price adjusted for a $50,000 purchase). All
dividends and any capital gains distribution on the escrowed shares will
be credited to my account.
If the total minimum investment specified under the Letter is
completed within a thirteen month period, escrowed shares will be
promptly released to me. However, shares disposed of prior to completion
of the purchase requirement under the Letter will be deducted from the
amount required to complete the investment commitment.
Upon expiration of this Letter, the total purchases pursuant to
the Letter are less than the amount specified in the Letter as the
intended aggregate purchases, Calvert Securities Corporation ("CDI")
will bill me for an amount equal to the difference between the lower
load I paid and the dollar amount of sales charges which I would have
paid if the total amount purchased had been made at a single time. If
not paid by the investor within 20 days, CDI will debit the difference
from my account. Full shares, if any, remaining in escrow after the
aforementioned adjustment will be released and, upon request, remitted
to me.
I irrevocably constitute and appoint CDI as my
attorney-in-fact, with full power of substitution, to surrender for
redemption any or all escrowed shares on the books of the Fund. This
power of attorney is coupled with an interest.
The commission allowed by Calvert Securities Corporation to the
broker-dealer named herein shall be at the rate applicable to the
minimum amount of my specified intended purchases.
The Letter may be revised upward by me at any time during the
thirteen-month period, and such a revision will be treated as a new
Letter, except that the thirteen-month period during which the purchase
must be made will remain unchanged and there will be no retroactive
reduction of the sales charges paid on prior purchases.
In determining the total amount of purchases made hereunder,
shares disposed of prior to termination of this Letter will be deducted.
My broker-dealer shall refer to this Letter of Intent in placing any
future purchase orders for me while this Letter is in effect.
Dealer Name of Investor(s)
By _________________
Authorized Signer Address
Date________________ Signature of Investor(s)
Date________________ Signature of Investor(s)
*"Fund" in this Letter of Intent shall refer to the Fund or Portfolio,
as the case may be, here indicated.
<PAGE>
Part C
PART C. OTHER INFORMATION
Item 24. Financial Statements and Exhibits
(a) Financial statements
Financial statements incorporated by reference
to:
All financial statements for Calvert World Values Fund,
Inc., Global Equity Fund series are incorporated by
reference to Registrant's Annual Report to Shareholders
dated September 30, 1995, and filed December 12 , 1995.
(b) Exhibits:
1. Articles of Incorporation (incorporated by
reference to Registrant's Initial Registration
Statement, February 18, 1992).
2. By-Laws, (incorporated by reference to
Registrant's Pre-Effective Amendment No. 1,
May 21, 1992).
4. Specimen Stock Certificate, (Draft
incorporated by reference to Registrant's
Pre-Effective Amendment No. 2, May 27, 1992).
5.a. Investment Advisory Contract, (incorporated by
reference to Registrant's Pre-Effective
Amendment No. 1, May 21, 1992).
5.b. Sub-advisory Contract, (incorporated by
reference to Registrant's Pre-Effective
Amendment No. 1, May 21, 1992).
6. Underwriting Agreement, (incorporated by
reference to Registrant's Post-Effective
Amendment No. 4, January 31, 1995).
7. Directors' Deferred Compensation Agreement,
(incorporated by reference to Registrant's
Post-Effective Amendment No. 4, January 31,
1995).
8. Custodial Contract, (Draft incorporated by
reference to Registrant's Pre-Effective
Amendment No. 2, May 27, 1992).
9.a. Transfer Agency Contract, (incorporated by
reference to Registrant's Pre-Effective
Amendment No. 1, May 21, 1992).
9.b. Administrative Services Agreement,
(incorporated by reference to Registrant's
Pre-Effective Amendment No. 1, May 21, 1992).
10. Opinion and Consent of Counsel as to Legality
of Shares Being Registered.
11. Consent of Independent Accountants to Use of Report.
14. Model Retirement Plans, (incorporated by
reference to Registrant's Pre-Effective
Amendment No. 2, May 27, 1992).
15. Plan of Distribution, (for Class A shares,
incorporated by reference to Registrant's
Pre-Effective Amendment No. 1, May 21, 1992).
(For Class B and C shares, incorporated by
reference to Registrant's Post-Effective
Amendment No. 4, January 31, 1995).
16. Schedule for Computation of Performance
Quotation,.(incorporated by reference to
Registrant's Post-Effective Amendment No. 4,
January 31, 1995).
17. Multiple-class Plan pursuant to Investment
Company Act of 1940 Rule 18f-3, filed herewith.
Exhibits 3, 12, and 13 are omitted because they are
inapplicable.
Item 25. Persons Controlled By or Under Common Control With Registrant
Registrant is controlled by its Board of Directors. Some
members of Registrant's Board also serve on the Board of
Trustees/Directors for Calvert Social Investment Fund, Calvert New World
Fund, Inc., or Acacia Capital Corporation, and/or a common Board with
five registered investment companies, First Variable Rate Fund for
Government Income, Calvert Tax-Free Reserves, Calvert Cash Reserves
(doing business as Money Management Plus), The Calvert Fund, and Calvert
Municipal Fund, Inc.
Item 26. Number of Holders of Securities
As of November 30, 1995, there were 20,050 holders of record of
Registrant's Class A shares of common stock for the Calvert World Values
Global Equity Fund series.
As of November 30, 1995, there were 929 holders of record of
Registrant's Class C shares of common stock for the Calvert World Values
Global Equity Fund series.
As of November 30, 1995, there were 1,852 holders of record of
Registrant's Class C shares of common stock for the Calvert World Values
Capital Accumulation Fund series.
As of November 30, 1995, there were 286 holders of record of
Registrant's Class C shares of common stock for the Calvert World Values
Capital Accumulation Fund series.
Item 27. Indemnification
Registrant's ByLaws provide, in summary, that officers,
directors, employees, and agents shall be indemnified by Registrant
against liabilities and expenses incurred by such persons in connection
with actions, suits, or proceedings arising out of their offices or
duties of employment, except that no indemnification can be made to such
a person if he has been adjudged liable of willful misfeasance, bad
faith, gross negligence, or reckless disregard of his duties. In the
absence of such an adjudication, the determination of eligibility for
indemnification shall be made by independent counsel in a written
opinion or by the vote of a majority of a quorum of directors who are
neither "interested persons" of Registrant, as that term is defined in
Section 2(a)(19) of the Investment Company Act of 1940, nor parties to
the proceeding.
Registrant may purchase and maintain liability insurance on
behalf of any officer, director, employee or agent against any
liabilities arising from such status. In this regard, Registrant
maintains a Directors & Officers (Partners) Liability Insurance Policy
with Chubb Group of Insurance Companies, 15 Mountain View Road, Warren,
New Jersey 07061, providing Registrant with $5 million in directors and
officers errors and omissions liability coverage, plus $3 million in
excess directors and officers liability coverage for the independent
directors only. Registrant also maintains an $8 million Investment
Company Blanket Bond (fidelity coverage) issued by ICI Mutual Insurance
Company, P.O. Box 730, Burlington, Vermont 05402.
Item 28. Business and Other Connections of Investment Adviser
Name of Company, Principal
Name Business and Address Capacity
Clifton S. Sorrell, Jr. Calvert Asset Management Officer
Company, Inc. and
Investment Advisor Director
4550 Montgomery Avenue
Bethesda, MD 20814
----------------
Calvert Group, Ltd. Officer
Holding Company and
4550 Montgomery Avenue Director
Bethesda, MD 20814
----------------
Calvert Shareholder Officer
Services, Inc. and
Transfer Agent Director
4550 Montgomery Avenue
Bethesda, MD 20814
---------------
Calvert Administrative Officer
Services Company and
4550 Montgomery Avenue Director
Bethesda, Maryland 20814
---------------
Calvert Distributors, Inc.Director
Broker-Dealer
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
First Variable Rate Fund
for Government Income
Calvert Tax-Free Reserves Officer
Calvert Social Investment and
Fund Trustee
Money Management Plus
The Calvert Fund
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Acacia Capital
Corporation Officer
Calvert Municipal Fund, and
Inc. Director
Calvert World
Values Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert New World Director
Fund, Inc.
Investment Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert-Sloan Advisers,
L.L.C. Director
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
Item 28. Business and Other Connections of Investment Adviser
Name of Company, Principal
Name Business and Address Capacity
Ronald M. First Variable Rate Fund
Wolfsheimer for Government Income
Calvert Tax-Free Reserves Officer
Money Management Plus
Calvert Social Investment Fund
The Calvert Fund
Acacia Capital Corporation
Calvert Municipal Fund, Inc.
Calvert World Values Fund, Inc.
Calvert New World Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
--------------
Calvert Asset Management Officer
Company, Inc.
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Group, Ltd. Officer
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Shareholder Officer
Services, Inc.
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Administrative Officer
Services Company and
Service Company Director
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Distributors,
Inc. Officer
Broker-Dealer and
4550 Montgomery Avenue Director
Bethesda, Maryland 20814
---------------
Calvert-Sloan Advisers, Officer
L.L.C. Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Item 28.
Business and Other Connections of Investment Adviser
Name of Company, Principal
Name Business and Address Capacity
David R. Rochat First Variable Rate
Fund for Government Income
Calvert Tax-Free Reserves Officer
Money Management Plus and
The Calvert Fund Trustee
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Municipal Fund, Officer
Inc. Investment Company and
4550 Montgomery Director
Avenue Bethesda,
Maryland 20814
---------------
Calvert Asset Management Officer
Company, Inc. and
Investment Advisor Director
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Chelsea Securities, Inc. Officer
Securities Firm and
Post Office Box 93 Director
Chelsea, Vermont 05038
---------------
Grady, Berwald & Co. Officer
Holding Company and
43A South Finley Avenue Director
Basking Ridge, NJ 07920
---------------
Reno J. Martini Calvert Asset Management Officer
Company, Inc.
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Group, Ltd. Officer
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Distributors, Inc.Director
Broker-Dealer and
4550 Montgomery Avenue Officer
Bethesda, Maryland 20814
---------------
Calvert-Sloan Advisers, Director
L.L.C. Investment Advisor and
4550 Montgomery Officer
Avenue Bethesda,
Maryland 20814
----------------
Item 28. Business and Other Connections of Investment Adviser
Name of Company, Principal
Name Business and Address Capacity
Reno J. Martini First Variable Rate Fund
for Government Income
(continued) Calvert
Tax-Free Reserves Officer
Money Management Plus
Calvert Social
Investment Fund
The Calvert Fund
Acacia Capital
Corporation, Calvert
Municipal Fund, Inc.
Calvert World Values
Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Charles T. Nason Acacia Mutual Life
Insurance Officer
Acacia National Life and
Insurance Director
Insurance Companies
51 Louisiana Avenue, NW
Washington, D.C. 20001
------------------
Acacia Financial
Corporation Officer
Holding Company and
51 Louisiana Avenue, NW Director
Washington, D.C. 20001
------------------
Acacia Federal Savings
Bank Director
Savings Bank
7600-B Leesburg Pike
Falls Church, Virginia 22043
------------------
Enterprise Resources, Inc.
Business Support Officer
Services and
51 Louisiana Avenue, NW Director
Washington, D.C. 20001
------------------
Acacia Insurance
Management Services
Corporation Officer
Service Corporation
and 51 Louisiana
Director Avenue, N.W.
Washington, D.C. 20001
------------------
Calvert Group, Ltd. Director
Holding Company
4550 Montgomery Avenue
Bethesda, MD 20814
------------------
Calvert Administrative Director
Services Co.
Service Company
4550 Montgomery Avenue
Bethesda, MD 20814
------------------
Item 28. Business and Other Connections of Investment Adviser
Name of Company, Principal
Name Business and Address Capacity
Charles T. Nason Calvert Asset Management
(continued) Co., Inc. Director
Investment Advisor
4550 Montgomery Avenue
Bethesda, MD 20814
------------------
Calvert Shareholder
Services, Inc. Director
Transfer Agent
4550 Montgomery Avenue
Bethesda, MD 20814
------------------
The Advisors Group, Inc. Director
Broker-Dealer and
Investment Advisor
51 Louisiana Avenue, NW
Washington, D.C. 20001
------------------
Calvert Social Investment
Fund Trustee
Investment Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
-----------------
Item 28. Business and Other Connections of Investment Adviser
Name of Company, Principal
Name Business and Address Capacity
Robert-John H. Acacia National Life
Sands Insurance Officer
Insurance Company and
51 Louisiana Avenue, NW Director
Washington, D.C. 20001
-------------------
Acacia Mutual Life
Insurance Officer
Insurance Company
51 Louisiana Avenue, NW
Washington, D.C. 20001
-------------------
Acacia Financial
Corporation Officer
Holding Company and
51 Louisiana Avenue, NW Director
Washington, D.C. 20001
-------------------
Acacia Federal Savings
Bank Officer
Savings Bank
7600-B Leesburg Pike
Falls Church, Virginia 22043
------------------
Enterprise Resources, Inc.Director
Business Support Services
51 Louisiana Avenue, NW
Washington, D.C. 20001
------------------
Acacia Realty Corporation Officer
Real Estate Investments
51 Louisiana Avenue, NW
Washington, D.C. 20001
------------------
Acacia Insurance Management
Services Corporation Officer
Service Corporation and
51 Louisiana Avenue, N.W. Director
Washington, D.C. 20001
---------------
Calvert Group, Ltd. Director
Holding Company
4550 Montgomery Avenue
Bethesda, MD 20814
------------------
Calvert Administrative Director
Services, Co.
Service Company
4550 Montgomery Avenue
Bethesda, MD 20814
------------------
Calvert Asset Management
Co., Inc. Director
Investment Advisor
4550 Montgomery Avenue
Bethesda, MD 20814
------------------
Item 28. Business and Other Connections of Investment Adviser
Name of Company, Principal
Name Business and Address Capacity
Robert-John H. Calvert Shareholder
Sands Services, Inc. Director
(continued) Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
The Advisors Group, Inc. Director
Broker-Dealer and
Investment Advisor
51 Louisiana Avenue, NW
Washington, D.C. 20001
------------------
William M. Tartikoff First Variable Rate Fund for
Government Income
Calvert Tax-Free Reserves Officer
Money Management Plus
Calvert Social Investment Fund
The Calvert Fund
Acacia Capital Corporation
Calvert Municipal Fund, Inc.
Calvert World Values Fund, Inc.
Calvert New World Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Calvert Group, Ltd. Officer
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Calvert Administrative Officer
Services Company
Service Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Calvert Asset Management Officer
Company, Inc.
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
-------------------
Calvert Shareholder Officer
Services, Inc.
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
-------------------
Calvert Distributors, Inc.Officer
Broker-Dealer and
4550 Montgomery Avenue Director
Bethesda, Maryland 20814
-------------------
Acacia National Life
Insurance Company Officer
Insurance Company
51 Louisiana Avenue, NW
Washington, D.C. 20001
-------------------
Item 28. Business and Other Connections of Investment Adviser
Name of Company, Principal
Name Business and Address Capacity
Susan Walker Calvert Group, Ltd. Officer
Bender Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Calvert Administrative Officer
Services Company
Service Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Calvert Asset Management Officer
Company, Inc.
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
-------------------
Calvert Shareholder Officer
Services, Inc.
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
-------------------
Calvert Distributors, Officer
Inc. Broker-Dealer
4550 Montgomery Avenue
Bethesda, Maryland 20814
-------------------
First Variable Rate Fund for
Government Income
Calvert Tax-Free Reserves Officer
Money Management Plus
Calvert Social Investment Fund
The Calvert Fund
Acacia Capital Corporation
Calvert Municipal Fund, Inc.
Calvert World Values Fund, Inc.
Calvert New World Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Calvert-Sloan Advisers,
L.L.C. Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Item 28. Business and Other Connections of Investment Adviser
Name of Company, Principal
Name Business and Address Capacity
Beth-ann Roth Calvert Group, Ltd. Officer
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Calvert Administrative Officer
Services Company
Service Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Calvert Asset Management Officer
Company, Inc.
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
-------------------
Calvert Shareholder Officer
Services, Inc.
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
-------------------
Calvert Distributors, Inc.Officer
Broker-Dealer
4550 Montgomery Avenue
Bethesda, Maryland 20814
-------------------
First Variable Rate Fund for
Government Income
Calvert Tax-Free Reserves Officer
Money Management Plus
Calvert Social Investment Fund
The Calvert Fund
Acacia Capital Corporation
Calvert Municipal Fund, Inc.
Calvert World Values Fund, Inc.
Calvert New World Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Calvert-Sloan Advisers,
L.L.C. Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Item 28. Business and Other Connections of Investment Adviser
Name of Company, Principal
Name Business and Address Capacity
Daniel K. Hayes Calvert Asset Management Officer
Company, Inc.
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
First Variable Rate Fund
for Government Income
Calvert Tax-Free Reserves Officer
Money Management Plus
Calvert Social Investment Fund
The Calvert Fund
Acacia Capital Corporation
Calvert Municipal Fund, Inc.
Calvert World Values Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Steve Van Order Calvert Asset Management Officer
Company, Inc.
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
------------------
Item 29. Principal Underwriters
(a) Registrant's principal underwriter also underwrites First
Variable Rate Fund for Government Income, Calvert Tax-Free Reserves,
Calvert Social Investment Fund, Calvert Cash Reserves (d/b/a Money
Management Plus), The Calvert Fund, and Calvert Municipal Fund, Inc.,
Calvert New World Fund, Inc., and Acacia Capital Corporation.
(b) Positions of Underwriter's Officers and Directors
Name and Principal Position(s) with Position(s) with
Business Address Underwriter Registrant
Clifton S. Sorrell, Jr. Director President
and Director
Ronald M. Wolfsheimer Director, Senior Vice Treasurer
President and Controller
William M. Tartikoff Director, Senior Vice Vice President
President and Secretary and Secretary
Steven J. Schueth President None
Karen Becker Vice President, Operations None
John Poleondakis Regional Vice President None
Lee Mahfouz Regional Vice President None
Geoff Ashton Regional Vice President None
Debra Vick Regional Vice President None
Susan Walker Bender Assistant Secretary Assistant Secretary
Beth-ann Roth Assistant Secretary Assistant Secretary
Katherine Stoner Assistant Secretary None
Lisa Crossley Compliance Officer None
The principal business address of the above individuals is 4550
Montgomery Avenue, Suite 1000N, Bethesda, Maryland 20814.
(c) Inapplicable.
Item 30. Location of Accounts and Records
Ronald M. Wolfsheimer, Treasurer
and
William M. Tartikoff, Secretary
4550 Montgomery Avenue, Suite 1000N
Bethesda, Maryland 20814
Item 31. Management Services
Not Applicable
Item 32. Undertakings
a) Not applicable.
b) Not applicable.
c) The Registrant undertakes to furnish to each person to
whom a Prospectus is delivered, a copy of the
Registrant's latest Annual Report to Shareholders, upon
request and without charge.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and
the Investment Company Act of 1940, the Registrant certifies that it
meets all of the requirements for effectiveness of this registration
statement pursuant to Rule 485(b) under the Securities Act of 1933 and
has duly caused this registration statement to be signed on its behalf
by the undersigned, thereto duly authorized in the City of Bethesda, and
State of Maryland, on the ___ day of January, 1996.
CALVERT WORLD VALUES FUND, INC.
By:
________________________
Clifton S. Sorrell, Jr.
President and Director
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933,
this Registration Statement has been signed below by the following
persons in the capacities indicated.
Signature Title Date
________________________ President and Director 01/30/96
Clifton S. Sorrell, Jr. Principal Executive Officer)
________________________ Principal Accounting Officer 01/30/96
Ronald M. Wolfsheimer
__________**____________ Director 01/30/96
John G. Guffey, Jr.
__________**____________ Director 01/30/96
Terrence Mollner
__________**____________ Director 01/30/96
Rustum Roy
__________**____________ Director 01/30/96
D. Wayne Silby
__________**____________ Director 01/30/96
Tessa Tennant
__________**____________ Director 01/30/96
Mohammad Yunus
** Signed by Susan Walker Bender pursuant to power of attorney,
attached hereto.
<PAGE>
POWER OF ATTORNEY
I, the undersigned Trustee/Director of Calvert World Values Fund (the
"Fund") "Funds"), hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff,
Susan Walker Bender, Beth-ann Roth, and Katherine Stoner my true and lawful
attorneys, with full power to each of them, to sign for me and in my name in the
appropriate capacities, all registration statements and amendments filed by the
Funds with any federal or state agency, and to do all such things in my name and
behalf necessary for registering and maintaining registration or exemptions from
registration of the Funds with any government agency in any jurisdiction,
domestic or foreign.
The same persons are authorized generally to do all such things
in my name and behalf to comply with the provisions of all federal,
state and foreign laws, regulations, and policy pronouncements affecting
the Funds, including, but not limited to, the Securities Act of 1933,
the Securities Exchange Act of 1934, the Investment Company Act of 1940,
the Investment Advisers Act of 1940, and all state laws regulating the
securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Funds in
connection with any transaction approved by the Board of
Trustee/Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the
Funds, the signing is automatically ratified and confirmed by me by
virtue of this Power of Attorney.
WITNESS my hand on the date set forth below.
May 2, 1994
Date Signature
John G. Guffey, Jr.
Witness Name of Trustee/Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Trustee/Director of Calvert World Values Fund (the
"Fund") "Funds"), hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff,
Susan Walker Bender, Beth-ann Roth, and Katherine Stoner my true and lawful
attorneys, with full power to each of them, to sign for me and in my name in the
appropriate capacities, all registration statements and amendments filed by the
Funds with any federal or state agency, and to do all such things in my name and
behalf necessary for registering and maintaining registration or exemptions from
registration of the Funds with any government agency in any jurisdiction,
domestic or foreign.
The same persons are authorized generally to do all such things
in my name and behalf to comply with the provisions of all federal,
state and foreign laws, regulations, and policy pronouncements affecting
the Funds, including, but not limited to, the Securities Act of 1933,
the Securities Exchange Act of 1934, the Investment Company Act of 1940,
the Investment Advisers Act of 1940, and all state laws regulating the
securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Funds in
connection with any transaction approved by the Board of
Trustee/Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the
Funds, the signing is automatically ratified and confirmed by me by
virtue of this Power of Attorney.
WITNESS my hand on the date set forth below.
May 2, 1994
Date Signature
Terrence Mollner
Witness Name of Trustee/Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Trustee/Director of Calvert World Values Fund (the
"Fund") "Funds"), hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff,
Susan Walker Bender, Beth-ann Roth, and Katherine Stoner my true and lawful
attorneys, with full power to each of them, to sign for me and in my name in the
appropriate capacities, all registration statements and amendments filed by the
Funds with any federal or state agency, and to do all such things in my name and
behalf necessary for registering and maintaining registration or exemptions from
registration of the Funds with any government agency in any jurisdiction,
domestic or foreign.
The same persons are authorized generally to do all such things
in my name and behalf to comply with the provisions of all federal,
state and foreign laws, regulations, and policy pronouncements affecting
the Funds, including, but not limited to, the Securities Act of 1933,
the Securities Exchange Act of 1934, the Investment Company Act of 1940,
the Investment Advisers Act of 1940, and all state laws regulating the
securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Funds in
connection with any transaction approved by the Board of
Trustee/Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the
Funds, the signing is automatically ratified and confirmed by me by
virtue of this Power of Attorney.
WITNESS my hand on the date set forth below.
May 2, 1994
Date Signature
Rustum Roy
Witness Name of Trustee/Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Trustee/Director of Calvert World Values Fund (the
"Fund") "Funds"), hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff,
Susan Walker Bender, Beth-ann Roth, and Katherine Stoner my true and lawful
attorneys, with full power to each of them, to sign for me and in my name in the
appropriate capacities, all registration statements and amendments filed by the
Funds with any federal or state agency, and to do all such things in my name and
behalf necessary for registering and maintaining registration or exemptions from
registration of the Funds with any government agency in any jurisdiction,
domestic or foreign.
The same persons are authorized generally to do all such things
in my name and behalf to comply with the provisions of all federal,
state and foreign laws, regulations, and policy pronouncements affecting
the Funds, including, but not limited to, the Securities Act of 1933,
the Securities Exchange Act of 1934, the Investment Company Act of 1940,
the Investment Advisers Act of 1940, and all state laws regulating the
securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Funds in
connection with any transaction approved by the Board of
Trustee/Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the
Funds, the signing is automatically ratified and confirmed by me by
virtue of this Power of Attorney.
WITNESS my hand on the date set forth below.
May 2, 1994
Date Signature
D. Wayne Silby
Witness Name of Trustee/Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Trustee/Director of Calvert World Values Fund (the
"Fund") "Funds"), hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff,
Susan Walker Bender, Beth-ann Roth, and Katherine Stoner my true and lawful
attorneys, with full power to each of them, to sign for me and in my name in the
appropriate capacities, all registration statements and amendments filed by the
Funds with any federal or state agency, and to do all such things in my name and
behalf necessary for registering and maintaining registration or exemptions from
registration of the Funds with any government agency in any jurisdiction,
domestic or foreign.
The same persons are authorized generally to do all such things
in my name and behalf to comply with the provisions of all federal,
state and foreign laws, regulations, and policy pronouncements affecting
the Funds, including, but not limited to, the Securities Act of 1933,
the Securities Exchange Act of 1934, the Investment Company Act of 1940,
the Investment Advisers Act of 1940, and all state laws regulating the
securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Funds in
connection with any transaction approved by the Board of
Trustee/Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the
Funds, the signing is automatically ratified and confirmed by me by
virtue of this Power of Attorney.
WITNESS my hand on the date set forth below.
August 17, 1994
Date Signature
Tessa Tennant
Witness Name of Trustee/Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Trustee/Director of Calvert World Values Fund (the
"Fund") "Funds"), hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff,
Susan Walker Bender, Beth-ann Roth, and Katherine Stoner my true and lawful
attorneys, with full power to each of them, to sign for me and in my name in the
appropriate capacities, all registration statements and amendments filed by the
Funds with any federal or state agency, and to do all such things in my name and
behalf necessary for registering and maintaining registration or exemptions from
registration of the Funds with any government agency in any jurisdiction,
domestic or foreign.
The same persons are authorized generally to do all such things
in my name and behalf to comply with the provisions of all federal,
state and foreign laws, regulations, and policy pronouncements affecting
the Funds, including, but not limited to, the Securities Act of 1933,
the Securities Exchange Act of 1934, the Investment Company Act of 1940,
the Investment Advisers Act of 1940, and all state laws regulating the
securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Funds in
connection with any transaction approved by the Board of
Trustee/Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the
Funds, the signing is automatically ratified and confirmed by me by
virtue of this Power of Attorney.
WITNESS my hand on the date set forth below.
May 2, 1994
Date Signature
Mohammad Yunus
Witness Name of Trustee/Director
<PAGE>
<PAGE>
Exhibit 10
January 30, 1996
Securities and Exchange Commission
Judiciary Plaza
450 Fifth Street, N.W.
Washington, D.C. 20549
Re: Exhibit 10, Form N-1A
Calvert World Values Fund, Inc.
File numbers: 33-45829
811-06563
Ladies and Gentlemen:
As counsel to Calvert Group, Ltd., it is my opinion that the
securities being registered by this Post-Effective Amendment No. 5 will
be legally issued, fully paid and non-assessable when sold. My opinion
is based on an examination of documents related to Calvert World Values
Fund, Inc. (the "Fund"), including its Articles of Incorporation, other
original or photostatic copies of Fund records, certificates of public
officials, documents, papers, statutes, or authorities as I deemed
necessary to form the basis of this opinion.
I therefore consent to filing this opinion of counsel with the
Securities and Exchange Commission as an Exhibit to the Fund's
Post-Effective Amendment No. 5 to its Registration Statement.
Sincerely,
Susan Walker Bender
Associate General Counsel
CONSENT OF INDEPENDENT ACCOUNTANTS
We consent to the incorporation by reference in Post-Effective Amendment
No. 5 to the Registration Statement of the Calvert World Values Fund, Inc.
(Global Equity Fund and Capital Accumulation Fund) on Form N-1A (File Numbers
33-45829 and 811-06563) of our reports dated November 9, 1995 on our audits of
the financial statements and financial highlights of the Funds, which reports
are included in the Annual Reorts to shareholders for the year ended September
30, 1995 which are incorporated by reference in the Registration Statement.
We also consent to the reference to our Firm under the caption "Financial
Highlights" in the Prospectuses and under the caption "Independent Accountants
and Custiodians in the Statements of Additional Information."
COOPERS & LYBRAND, L.L.P.
Baltimore, Maryland
January 16, 1996
Rule 18f-3 Multiple Class Plan
Calvert World Values Fund
Rule 18f-3 under the Investment Company Act of 1940, as amended
(the "1940 Act"), requires that an investment company desiring to offer
multiple classes of shares pursuant to the Rule adopt a plan setting
forth the differences among the classes with respect to shareholder
services, distribution arrangements, expense allocations and any related
conversion features or exchange privileges. Any material amendment to
the plan must be approved by the investment company's Board of
Trustees/Directors, including a majority of the disinterested Board
members, who must find that the plan is in the best interests of each
class individually and the investment company as a whole.
1. Class Designation. Fund shares shall be designated
either Class A or Class C.
2. Differences in Availability. Class A shares and Class
C shares shall both be available through the same distribution channels,
except that Class C shares; (1) may not be available through some
dealers, and, (2) are not available for purchases of $1 million or more.
3. Differences in Services. The services offered to
shareholders of each Class shall be substantially the same, except that
Rights of Accumulation, Letters of Intent and Reinvestment Privileges
shall be available only to holders of Class A shares.
4. Differences in Distribution Arrangements. Class A
shares shall be offered with a front-end sales charge, as such term is
defined in Article III, Section 26(b), of the Rules of Fair Practice of
the National Association of Securities Dealers, Inc. The amount of the
front-end sales charge on Class A shares is set forth at Exhibit I.
Class A shares shall be subject to a Distribution Plan adopted pursuant
to Rule 12b-1 under the 1940 Act. The amount of the Distribution Plan
expenses for Class A shares, as set forth at Exhibit I, are used to pay
the Fund's Distributor for distributing the Fund's Class A shares. This
amount includes a service fee at the annual rate of .25 of 1% of the
value of the average daily net assets of Class A.
Class C shares shall be subject to neither a front-end sales
charge, nor a contingent deferred sales charge (CDSC). Class C shares
shall be subject to a Distribution Plan adopted pursuant to Rule 12b-1
under the 1940 Act. The amount of the Distribution Plan expenses for
Class C shares is set forth at Exhibit I. The Class C Distribution Plan
pays the Fund's Distributor for distributing the Fund's Class C shares.
This amount includes a service fee at the annual rate of .25 of 1% of
the value of the average daily net assets of Class C.
5. Expense Allocation. The following expenses shall be
allocated, to the extent practicable, on a Class-by-Class basis: (a)
Distribution Plan fees; (b) transfer agent fees and expenses; (c)
printing and postage expenses payable by the Fund relating to preparing
and distributing materials, such as proxies, to current shareholders of
a specific Class; (d) class specific state registration fees; (e) class
specific litigation or other legal expenses; (f) certain class specific
reimbursement from the investment advisor ; (g) certain class specific
contract services (e.g., proxy solicitation); and (h) any other expenses
subsequently identified that, in the opinion of counsel, or the Fund's
independent public accountants are properly allocated by Class.
6. Conversion Features. No Class shall be subject to any
automatic conversion feature.
7. Exchange Privileges. Class A shares shall be
exchangeable only for (a) Class A shares of other funds managed,
administered, or underwritten by Calvert Group; (b) shares of funds
managed, administered or underwritten by Calvert Group which do not have
separate share classes; and (c) shares of certain other funds specified
from time to time.
Class C shares shall be exchangeable only for (a) Class C
shares of other funds managed, administered or underwritten by Calvert
Group; (b) Class A shares of other funds managed, administered or
underwritten by Calvert Group, if the front-end load on the Class A
shares is paid at the time of the exchange; and (c) shares of certain
other funds specified from time to time.
Dated: January 25, 1996
EXHIBIT I
Calvert World Values Fund
Maximum Class A Maximum Class A Maximum Class C
Front-End Sales 12b-1 Fee 12b-1 fee
Charge
Global Equity Fund 4.75% 0.35% 1.00%
Capital Accumulation Fund 4.75% 0.35% 1.00%
