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. 7 XX
and/or
REGISTRATION STATEMENT UNDER THE
INVESTMENT COMPANY ACT OF 1940
Post-Effective Amendment No. 7 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 July, 31 1997
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 March 29, 1997,
Registrant filed a Rule 24f-2 notice for its fiscal year ended March 31,
1997.
<PAGE>
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
<PAGE>
PROSPECTUS JULY 31, 1997
CALVERT CAPITAL ACCUMULATION FUND
CALVERT NEW VISION SMALL CAP FUND
4550 MONTGOMERY AVENUE, BETHESDA, MARYLAND
20814
.................................................
Calvert Capital Accumulation Fund seeks
long-term capital appreciation by investing
primarily in the stock of small- to
medium-sized companies using the talent of one
or more investment subadvisors. The market
capitalization of companies chosen for
investment will generally be within the range
of capitalization of the S&P 400 Mid-Cap Index,
but the Fund may also invest in larger and
smaller companies as deemed appropriate. It is
the Advisor's intent that on average, the
market capitalization of the companies
represented in the Fund's portfolio will be
mid-sized, with a slight bias toward the
growth-style of investing. Other investments
may include foreign securities, convertible
issues, and certain options and futures
transactions. The Fund will take reasonable
risks in seeking to achieve its investment
objective.
Calvert New Vision Small Cap Fund seeks to
achieve long-term capital appreciation by
investing primarily in the equity securities of
small companies1 publicly traded in the United
States. In seeking capital appreciation, the
Fund invests primarily in the equity securities
of small capitalized growth companies
(including American Depositary Receipts
("ADRs")) that have historically exhibited
exceptional growth characteristics and that, in
the Advisor's opinion, have strong earnings
potential relative to the U.S. market as a
whole. The Fund employs aggressive investment
strategies that have the potential for yielding
high returns. The Fund will take reasonable
risks in seeking to achieve its investment
objective. 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.
Share prices of both funds may experience
substantial fluctuations so that your shares
may be worth less than when you originally
purchased them. Income is not an objective of
either Fund; the Funds should not be used to
meet short-term financial needs.
.................................................
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.
- ----------------------------------------------
THESE SECURITIES HAVE NOT BEEN APPROVED OR
DISAPPROVED BY THE SECURITIES AND EXCHANGE
COMMISSION OR ANY STATE SECURITIES
COMMISSION, NOR HAS THE FEDERAL OR ANY STATE
SECURITIES COMMISSION PASSED ON THE ACCURACY
OR ADEQUACY OF THIS PROSPECTUS. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL
OFFENSE.
SHARES OF THE FUNDS ARE NOT DEPOSITS OR
OBLIGATIONS OF, OR GUARANTEED OR ENDORSED
BY, ANY BANK, AND ARE NOT FEDERALLY INSURED
BY THE FDIC, THE
FEDERAL RESERVE BOARD, OR ANY OTHER AGENCY.
WHEN INVESTORS SELL SHARES OF THE FUND, THE
VALUE MAY BE HIGHER OR LOWER THAN THE AMOUNT
ORIGINALLY PAID.
1 Currently those with a total capitalization
of less than $1 billion at the time of the
Fund's initial investment.
<PAGE>
Purchase Information
The Funds both offer 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 ("SAI") (dated July 31, 1997) has
been filed with the Securities and Exchange
Commission (the "Commission") and is
incorporated by reference. This free Statement
is available upon request from the Fund:
800-368-2748. The Commission maintains a
website (http://www.sec.gov) that contains the
SAI, material incorporated by reference, and
other information regarding registrants that
file electronically with the Commission.
- -------------------------------------------------
FUND EXPENSES
.................................................
Capital Accumulation New Vision
Fund Small Cap Fund
A.Shareholder Transaction Costs Class A Class C Class A Class C
Maximum Front-End Sales Charge
on Purchases (as a percentage of
offering price) 4.75% None 4.75% None
Maximum Contingent Deferred Sales Charge None None None None
.................................................
B. Annual Fund Operating Expenses (Fiscal Year
1997)
(as a percentage of average net assets)
Management Fees 0.90% 0.90% 0.90% 0.90%
Rule 12b-1 Service and Distribution Fees 0.35% 1.00% 0.25% 1.00%
Other Expenses 0.71% 1.35% 0.35%3 0.60%3
- -------------------------------------------------
Total Fund Operating Expenses2 1.96% 3.25% 1.50% 2.50%
2 Net Fund Operating Expenses after reduction
for fees paid indirectly for the Capital
Accumulation fund were:
Class A - 1.86%, Class C - 3.14%
3 Estimated
<PAGE>
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:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
1 Year 3 Years 5 Years 10 Years
Capital Accumulation Fund Class A $66 $106 $148 $265
Class C $33 $100 $170 $355
New Vision Small Cap Fund Class A $62 $93 N/A N/A
Class C $25 $78 N/A N/A
</TABLE>
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).
.................................................
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.
.................................................
Annual Fund Operating Expenses
are based on fiscal 1997 historical expenses
for the Capital Accumulation Fund and are
estimates for the New Vision Small Cap Fund.
Management fees are paid by the Funds to the
Advisor for managing the Fund's investments and
business affairs. Management fees include the
subadvisory fees paid by Calvert Asset
Management Company, Inc. (the "Advisor") to the
various subadvisors and the administrative
service fee paid to Calvert Administrative
Services Company. Management Fees have been
restated to reflect expenses anticipated in the
current fiscal year. (See "Management of the
Fund") The Management fees for the Capital
Accumulation Fund are subject to a performance
adjustment which could cause the fee to be as
high as 0.95% or as low as 0.65%, depending on
performance. The Funds incur Other Expenses for
maintaining shareholder records, furnishing
shareholder statements and reports, and other
services. Management Fees and Other Expenses
have already been reflected in the Funds' daily
share price and are not charged directly to
individual shareholder accounts. Please refer
to "Management of the Fund" for further
information. The Advisor may voluntarily defer
fees or assume expenses of the Funds. The
respective Investment Advisory Agreements
provide that the Advisor may, to the extent
permitted by law, later recapture any fees it
deferred or expenses it assumed during the two
prior years.
The Funds' Rule 12b-1 fees include an
asset-based sales charge. Thus, long-term
shareholders in each Fund may pay more in total
sales charges than the economic equivalent of
the maximum front-end sales charge permitted by
rules of the National Association of Securities
Dealers, Inc. In addition to the compensation
itemized above (sales charge and Rule 12b-1
service and distribution fees), certain
broker/dealers and/or their salespersons may
receive certain compensation for the sale and
distribution of the securities or for services
to the Funds. See the SAI, "Method of
Distribution."
FINANCIAL HIGHLIGHTS
.....................................................
The following table provides information about the
financial history of the Funds' Class A and C
shares. It expresses the information in terms of a
single share outstanding for the Fund throughout
each period. 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 SAI.
Class A Shares
<TABLE>
<CAPTION>
<S> <C> <C> <C>
From Oct.31,
Period Ended Year Ended 1994(incep-
March 31, Sept. 30, tion)to Sept.
1997 1997 30, 1997
Capital Accumulation Fund
Net asset value, beginning of period $ 22.55 $ 21.48 $ 15.00
Income from investment operations
Net investment income (loss) (.14) (.24) (.11)
Net realized and unrealized gain (loss) 1.12) 1.88 6.61
Total from investment operations 1.26) 1.64 6.50
Distributions from
Net investment income - - (.02)
Net realized gains - (.57) -
Total Distributions - (.57) (.02)
Total increase (decrease) in
net asset value (1.26) 1.07 6.48
Net asset value, ending $ 21.2 $ 22.55 $ 21.48
Total return<F4> (5.59%) 7.92% 43.40%
Ratio to average net assets:
Net investment income (loss) (1.27%)(a) (1.56%) (1.55%)(a)
Total expenses<F5> 1.96%(a) 2.16% 2.35 (a)
Net expenses 1.86%(a) 1.98% 2.06% (a)
Expenses reimbursed - - .05% (a)
Portfolio turnover 117% 114% 95%
Average commission rate paid $ .0541 $ .0563 $ -
Net assets, ending (in thousands) $ 41,070 $ 39,834 $ 16,111
Number of shares outstanding,
ending (in thousands) 1,929 1,767 750
<FN>
<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; such reductions
are included in the ratio
of net expenses.
(a) Annualized
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Class C Shares
From Oct.31,
Period Ended Year Ended 1994(incep-
March 31, Sept. 30, tion)to Sept.
1997 1997 30, 1997
Capital Accumulation Fund
Net asset value, beginning of period $ 22.34 $ 21.55 $ 15.00
Income from investment operations
Net investment income (loss) (.27) (.55) (.15)
Net realized and unrealized gain (loss)
(1.11) 1.91 6.70
Total from investment operations (1.38) 1.36 6.55
Distributions from
Net investment income - - -
Net realized gains - (.57) -
Total Distributions - (.57) -
Total increase (decrease) in
net asset value (1.38) .79 6.55
Net asset value, ending $ 20.96 $ 22.34 $ 21.55
Total return<F6> (6.18%) 6.56% 43.67%
Ratio to average net assets:
Net investment income (loss) (2.56%)(a) (2.82%) (3.13%)(a)
Total expenses<F7> 3.25%(a) 3.42% 3.79%(a)
Net expenses 3.14%(a) 3.24% 3.50%(a)
Expenses reimbursed - - 2.79%(a)
Portfolio turnover 117% 114% 95%
Average commission rate paid $ .0541 $ .0563 $ -
Net assets, ending (in thousands) $ 3,054 $ 3,164 $ 1,992
Number of shares outstanding,
ending (in thousands) 146 142 92
<FN>
<F6> Total return is not annualized and does not
reflect deduction of Class A front-end sales
charges.
<F7> This ratio reflects total expenses before
reduction for fees paid indirectly; such reductions
are included in the ratio
of net expenses.
(a) Annualized
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C>
Class A Shares Class C Shares
From Jan. 31, From Jan, 31
1997 (inception) 1997 (inception)
to March 31, 1997 to March 31, 1997
New Vision Small Cap Fund
Net asset value, beginning of period $ 15.00 $ 15.00
Income from investment operations
Net investment income (loss) - -
Net realized and unrealized gain (loss) (3.01) (3.01)
Total from investment operations (3.01) (3.01)
Distributions from
Net investment income - -
Net realized gains - -
Total Distributions - -
Total increase (decrease) in
net asset value (3.01) (3.01)
Net asset value, ending $ 11.99 $ 11.99
Total return<F8> (20.07%) (20.07%)
Ratio to average net assets:
Net investment income (loss)
Total expense<F9> .82%(a) .82%(a)
Net expenses - -
Expenses reimbursed 8.96%(a) 21.08%(a)
Portfolio turnover 97% 97%
Average commission rate paid $ .0500 $ .0500
Net assets, ending (in thousands) $ 1,215 $ 200
Number of shares outstanding,
ending (in thousands) 101 17
<FN>
<F8> Total return is not annualized and does not
reflect deduction of Class A front-end sales
charges.
<F9> This ratio reflects total expenses before
reduction for fees paid indirectly; such reductions
are included in the ratio of net expenses.
(a) Annualized
</FN>
</TABLE>
<PAGE>
INVESTMENT OBJECTIVE AND POLICIES
.................................................
The Capital Accumulation Fund seeks to provide
long-term capital appreciation by investing,
under normal market conditions, at least 65% of
its assets in the equity securities of small-
to mid-sized companies.
The Capital Accumulation 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 will
generally be within the range of capitalization
of the S&P 400 Mid-Cap Index, but which may be
larger or smaller as deemed appropriate.
Investments may also include, but are not
limited to, preferred stocks, foreign
securities, convertible securities, bonds,
notes and other debt securities. The Fund may
use certain futures and options, invest in
repurchase agreements, and lend its portfolio
securities. The Fund will take reasonable risks
in seeking to achieve its investment objective.
There is, of course, no assurance that the Fund
will be successful in meeting its objective
since there is risk involved in the ownership
of all equity securities. The Fund's investment
objective is not fundamental and may be changed
without shareholder approval. The Fund will
notify shareholders at least thirty days in
advance of a change in the investment objective
of the Fund so that shareholders may determine
whether the Fund's goals continue to meet their
own.
.................................................
The Capital Accumulation Fund has a pool of
several portfolio managers from which to choose.
The Capital Accumulation Fund will use the
services of one or more investment subadvisors
as portfolio managers in selecting companies in
which to invest. Taking into account the
individual styles of the portfolio managers,
the Advisor will allocate assets to achieve the
Fund's objective. 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.
.................................................
New Vision Small Cap Fund
The Calvert New Vision Small Cap Fund seeks to
provide long-term capital appreciation by
investing primarily in equity securities of
companies that have small market
capitalizations. In seeking capital
appreciation, the Fund invests primarily in
equity securities of small capitalized growth
companies that have historically exhibited
exceptional growth characteristics and that, in
the Advisor's opinion, have strong earnings
potential relative to the U.S. market as a
whole. The Fund's investment objective is not
fundamental and may be changed without
shareholder approval.
The New Vision Small Cap Fund pursues the
objective of capital appreciation by investing
primarily in equity securities of primarily
small companies with promising growth
potential. These companies typically are
developing innovative products or services to
seize emerging opportunities.
<PAGE>
Under normal circumstances, the New Vision
Small Cap Fund will invest at least 65% of its
total assets in equity securities of companies
publicly traded in the United States (currently
those with a total market capitalization of
under $1 billion at the time of the Fund's
initial investment).
The New Vision Small Cap Fund considers issuers
of all industries with operations in all
geographic markets, and does not seek interest
income or dividends. Equity securities may
include common stocks, preferred stocks,
convertible securities and warrants. In
selecting equity investments, the Fund focuses
on individual companies by screening over nine
thousand stocks traded on all major U.S. stock
exchanges. By applying proprietary stock
selection criteria, the Fund identifies
suitable investments to buy. The Fund may hold
cash or cash equivalents for temporary
defensive purposes or to enable it to take
advantage of buying opportunities. There is, of
course, no assurance that the Fund will be
successful in meeting its objective.
Companies whose capitalization increases or
decreases after initial purchase by the Fund
continue to be considered small-capitalized for
purposes of the 65% policy. Accordingly, less
than 65% of the Fund's total assets may be
invested in securities of issuers of companies
publicly traded in the United States (currently
those with a total market capitalization of
less than $1 billion).
The New Vision Small Cap Fund will normally be
as fully invested as practicable in common
stocks (including ADRs), but also may invest in
warrants and rights to purchase common stocks
and in debt securities and preferred stocks
convertible into common stocks (collectively,
"equity securities").
- -------------------------------------------------
INVESTMENT TECHNIQUES AND RISKS
.................................................
Risks
A company's market capitalization is the total
market value of its outstanding equity
securities. The value of the Fund's investments
will vary from day to day, and generally
reflect market conditions, interest rates and
other company, political, or economic news. In
the short-term, stock prices can fluctuate
dramatically in response to these factors. Over
time, however, stocks have shown greater growth
potential than other types of securities.
.................................................
Nondiversified
There may be risks associated with the Capital
Accumulation Fund being nondiversified.
Specifically, since a relatively high
percentage of the assets of the Capital
Accumulation Fund may be invested in the
obligations of a limited number of issuers, the
value of the shares of the Capital Accumulation
Fund may be more susceptible to any single
economic, political or regulatory event than
the shares of a diversified fund would be.
.................................................
Small Cap Issuers
While any investment in securities carries a
certain degree of risk, the approach of the
Fund is designed to maximize growth in relation
to the risks assumed. The securities of small
cap issuers may be less actively traded than
the securities of larger issuers, may trade in
a more limited volume, and may change in value
more abruptly than securities of larger
companies. Information concerning these
securities may not be readily available so that
the companies may be less actively followed by
stock analysts. Small-cap issuers do not
usually participate in market rallies to the
same extent as more widely-known securities,
and they tend to have a relatively higher
percentage of insider ownership.
Investing in smaller, new issuers generally
involves greater risk than investing in larger,
established issuers. Companies in which the
Fund is likely to invest may have limited
product lines, markets or financial resources
and may lack management depth. The securities
in such companies may also have limited
marketability and may be subject to more abrupt
or erratic market movements than securities of
larger, more established companies or the
market averages in general. Accordingly an
investment in the Fund may not be appropriate
for all investors.
.................................................
Temporary defensive positions
Under normal market conditions the Fund strives
to be fully invested in securities. However,
for temporary defensive purposes -which may
include a lack of adequate purchase candidates
or an unfavorable market environment-the
Capital Accumulation Fund may invest up to 100%
of its total assets, and the New Vision Small
Cap Fund may invest up to 35% of its total
assets, in cash or cash equivalents. Cash
equivalents include instruments such as, but
not limited to, U.S. government and agency
obligations, certificates of deposit, bankers'
acceptances, time deposits, commercial paper,
short-term corporate debt securities and
repurchase agreements.
.................................................
The Fund currently intends to invest in no more
than 5% of its net assets in
noninvestment-grade debt obligations.
Although the Capital Accumulation Fund invests
primarily in equity securities, it may invest
in debt securities and, although the New Vision
Small Cap Fund also invests primarily in equity
securities, it may invest up to 35% of its
total assets in debt securities, excluding
money market instruments. These debt securities
may consist of investment-grade and
noninvestment-grade obligations.
Investment-grade obligations are those which,
at the date of investment, are rated within the
four highest grades established by Moody's
Investors Services, Inc. (Aaa, Aa, A, or Baa)
or by Standard and Poor's Corporation (AAA, AA,
A, or BBB), or, if unrated, are deemed to be of
comparable quality by the Advisor.
Noninvestment-grade securities are those rated
below Baa or BBB, or unrated obligations that
the investment subadvisor has determined are
not investment-grade; such securities are
speculative in nature, the Funds currently
intend to limit such investments to 5% of their
respective net assets. The Funds will not buy
debt securities rated lower than C.
.................................................
Interest-rate risk
All fixed income instruments are subject to
interest-rate risk: that is, if market interest
rates rise, the current principal value of a
bond will decline. In general, the longer the
maturity of the bond, the greater the decline
in value will be.
<PAGE>
The Fund may use options and futures as
defensive strategies.
The Capital Accumulation Fund may attempt to
reduce the overall risk of its investments by
using options and 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 Subadvisors will make
decisions whether to invest in these
instruments based on market conditions,
regulatory limits and tax considerations. If
this strategy is used, the Fund may be required
to cover assets used for this purpose in a
segregated account for the protection of
shareholders.
In extraordinary circumstances, the New Vision
Small Cap Fund may use options and futures
contracts to increase or decrease its exposure
to changing security prices, interest rates, or
other factors that affect security values.
These techniques may involve derivative
transactions such as buying and selling options
and futures contracts and leveraged notes,
entering into swap agreements, and purchasing
indexed securities. The Fund can use these
practices only as protection against an adverse
move of the holdings in the Fund to adjust the
risk and return characteristics of the Fund.
The decision to invest in these instruments
will be based on market conditions, regulatory
limits and tax considerations. If market
conditions are judged incorrectly, a strategy
does not correlate well with the Fund's
investments, or if the counterparty to the
transaction does not perform as promised, these
techniques could result in a loss. These
techniques may increase the volatility of the
Fund and may involve a small investment of cash
relative to the magnitude of the risk assumed.
Any instruments determined to be illiquid are
subject to the Fund's limitation on illiquid
securities. See below and the Statement of
Additional Information for more details about
these strategies.
.................................................
Risks of using defensive strategies
There can be no assurance that engaging in
options, futures, or any other defensive
strategy will be successful. While defensive
strategies are designed to protect the Funds
from potential declines, if the Subadvisor
misgauges market values, interest rates, or
other economic factors, the Funds may be worse
off than had they not employed the defensive
strategy. While the Subadvisors attempt to
determine price movements and thereby prevent
declines in the value of portfolio holdings,
there is a risk of imperfect or no correlation
between price movements of portfolio
investments and instruments used as part of a
defensive strategy so that a loss is incurred.
While defensive strategies can reduce the risk
of loss, they can also reduce the opportunity
for gain since they offset favorable price
movements. The use of defensive strategies may
result in a disadvantage to the Funds if a Fund
is not able to purchase or sell a portfolio
holding at an optimal time due to the need to
cover its transaction in its segregated
account, or due to the inability of a Fund to
liquidate its position because of its relative
illiquidity.
.................................................
Repurchase agreements
The Funds may engage in repurchase agreements
to earn a higher rate of return than it could
earn simply by investing in the obligation
which is the subject of the repurchase
agreement. The Funds will only engage in
repurchase agreements with recognized
securities dealers and banks determined to
present minimal credit risk by the Advisor
under the direction and supervision of the
Funds' respective Board of Directors/Trustees.
In addition, the Funds will only engage in
repurchase agreements reasonably designed to
fully secure during the term of the agreement,
the seller's obligation to repurchase the
underlying security. The Funds will monitor the
market value of the underlying security during
the term of the agreement. If the seller
defaults on its obligation to repurchase and
the value of the underlying security declines,
the Funds may incur a loss and may incur
expenses in selling the underlying security.
Repurchase agreements are always for periods of
less than one year, and are considered illiquid
if not terminable within seven days.
.................................................
Foreign Securities and ADRs
The New Vision Small Cap Fund may invest up to
15% of its total assets in ADRs. The Capital
Accumulation Fund may also invest in ADRs,
subject to the restrictions applicable to
investments in foreign securities discussed
below. By investing in ADRs rather than
directly in foreign issuers' stock, the Funds
may avoid some currency and some liquidity
risks. The information available for ADRs is
subject to the more uniform and more exacting
accounting, auditing and financial reporting
standards of the domestic market or exchange on
which they are traded. U.S. dollar-denominated
ADRs, which are traded in the U.S. on exchanges
or over the counter, are receipts typically
issued by a U.S. bank or trust company which
evidence ownership of underlying securities of
a foreign corporation. In general, there is a
large, liquid market in the U.S. for many ADRs.
The Capital Accumulation Fund may invest up to
25% of its assets in the securities of foreign
issuers, although it currently holds or intends
to hold no more than 5% of its assets in such
securities. The Capital Accumulation Fund may
purchase foreign securities directly, on
foreign markets, or those represented by ADRs,
or other receipts evidencing ownership of
foreign securities, such as International
Depositary Receipts and Global Depositary
Receipts. Foreign securities may involve
additional risks, including currency
fluctuations, risks relating to political or
economic conditions, and the potentially less
stringent investor protection and disclosure
standards of foreign markets. These factors
could make foreign investments, especially
those in developing countries, less liquid and
more volatile. In addition, the costs of
foreign investing, including withholding taxes,
brokerage commissions and custodial costs are
generally higher than for U.S. investments. See
the SAI for more information on investing in
foreign securities.
.................................................
The Funds may lend their portfolio securities.
Both Funds may lend portfolio securities to
member firms of the New York Stock Exchange and
commercial banks with assets of one billion
dollars or more, although the New Vision Small
Cap Fund does not intend to do so and the
Capital Accumulation Fund does not currently
intend to lend more than 5% of its portfolio
securities. The advantage of such loans is that
the Funds continue to receive the equivalent of
the interest earned or dividends paid by the
issuers on the loaned securities while at the
same time earning interest on the cash or
equivalent collateral which may be invested in
accordance with the Funds' investment
objective, policies and restrictions. As with
any extension of credit, there may be risks of
delay in recovery and possibly loss of rights
in the loaned securities should the borrower of
the loaned securities fail financially.
.................................................
Borrowing
The New Vision Small Cap Fund may borrow money
from banks (and pledge its assets to secure
such borrowing) for temporary or emergency
purposes, but not for leverage. Such borrowing
may not exceed one third of the value of the
Fund's total assets.
High Social Impact Investments
The Funds have both adopted nonfundamental
policies that permit investments which, with
respect to the Capital Accumulation Fund, may
be up to three percent, and with respect to the
New Vision Small Cap Fund, may be up to one
percent, of that Fund's assets in securities
that offer a rate of return below the
then-prevailing market rate and that present
attractive opportunities for furthering each
Fund's social criteria ("High Social Impact
Investments"). These securities are typically
illiquid and unrated and are generally
considered noninvestment-grade debt securities,
which involve a greater risk of default or
price decline than investment-grade securities.
Through diversification and credit analysis and
limited maturity, investment risk can be
reduced, although there can be no assurance
that losses will not occur. The High Social
Impact Investments committee of the Board of
Directors/Trustees identifies, evaluates and
selects these investments, subject to
ratification by the respective Board.
- -------------------------------------------------
SOCIALLY RESPONSIBLE INVESTMENT CRITERIA
.................................................
The Funds carefully review company policies and
behavior regarding social issues important to
quality of life:
environment employee relations product criteria
weapons systems nuclear energy human rights
Once securities are determined to fall within
the investment objective of a Fund and are
deemed financially viable investments, they are
analyzed according to the social criteria
described below. These social screens are
applied to potential investment candidates by
the Advisor in consultation with the
Subadvisors.
The following criteria may be changed by the
respective Fund's Board of Directors/Trustees
without shareholder approval:
(1) The Funds avoid investing in companies
that, in the Advisor's opinion, have significant
or historical patterns of violating
environmental regulations, or otherwise have an
egregious
environmental record. Additionally, the Funds
will avoid investing in nuclear power plant
operators and owners, or manufacturers of key
components in the nuclear power process.
(2) The Funds will not invest in companies
that are significantly engaged in weapons
production. This includes weapons systems
contractors and major nuclear weapons systems
contractors.
(3) The Funds will not invest in companies
that, in the Advisor's opinion, have
significant or historical patterns of discrimination
against employees on the basis of race, gender,
religion, age, disability or sexual orientation,
or that have major labor-management disputes.
(4) The Funds will not invest in companies
that are significantly involved in the
manufacture of tobacco or alcohol products. The
Funds will not invest in companies that
make products or offer services that, under
proper use, in the Advisor's opinion, are
considered harmful.
The Advisor will seek to review companies'
overseas operations consistent with the social
criteria stated above.
While the Funds may invest in companies that
exhibit positive social characteristics, it
makes no explicit claims to seek out companies
with such practices.
TOTAL RETURN
.................................................
The Funds may advertise total return for each
class of shares. Total return is based on
historical results and is not intended to
indicate future performance.
Total return is calculated separately for each
class. It includes not only the effect of
income dividends but also any change in net
asset value, or principal amount, during the
stated period. The total return of a class
shows its overall change in value, including
changes in share price and assuming all of the
class' dividends and capital gain distributions
are reinvested. A cumulative total return
reflects the class' performance over a stated
period of time. An average annual total return
("return with maximum load") reflects the
hypothetical annual compounded return that
would have produced the same cumulative total
return if the performance had been constant
over the entire period. Because average annual
returns tend to smooth out variations in the
returns, you should recognize that they are not
the same as actual year-by-year results. Both
types of return usually will include the effect
of paying 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 "return
without maximum sales load" do not reflect
deduction of the sales charge. You should
consider these figures only if you qualify for
a reduced sales charge, or for purposes of
comparison with comparable figures which also
do not reflect sales charges, such as mutual
fund averages compiled by Lipper Analytical
Services, Inc. ("Lipper"). Further information
about the Funds' performance is contained in
its Annual Report to Shareholders, which may be
obtained without charge.
- -------------------------------------------------
MANAGEMENT OF THE FUND
.................................................
The Funds' Board of Directors/Trustees
supervise the Funds' activities and review
their contracts with companies that provide
them with services.
The Capital Accumulation Fund is a series of
Calvert World Values Fund, Inc. an open-end
management investment company organized as a
Maryland corporation on February 14, 1992. The
other series is the International Equity Fund,
a socially-screened portfolio of equity
securities from around the world.
The New Vision Small Cap Fund is a series of
The Calvert Fund (the "Trust"), an open-end
management investment company organized as a
Massachusetts business trust on March 15, 1982.
The other series of the Trust are the Calvert
Income Fund and Calvert Strategic
Growth Fund.
Neither Fund is required to hold annual
shareholder meetings, but special meetings may
be called for certain purposes such as electing
Directors/Trustees, changing fundamental
policies, or approving a management contract.
As a shareholder, you receive one vote for each
share of a Fund you own, except that matters
affecting classes differently, such as
Distribution Plans, will be voted on separately
by class.
Calvert Asset Management Company, Inc. serves
as Advisor to the Funds.
Calvert Asset Management Company, Inc. (the
"Advisor") is both Funds' investment advisor.
The Advisor provides the Funds with investment
supervision and management; administrative
services and office space; furnishes executive
and other personnel to the Funds; and pays the
salaries and fees of all Directors/Trustees who
are affiliated persons of the Advisor. The
Advisor may also assume and pay certain
advertising and promotional expenses of the
Funds and reserves the right to compensate
broker-dealers in return for their promotional
or administrative services. The Funds pay all
other operating expenses as noted in the SAI.
.................................................
Calvert Group is one of the largest investment
management firms in the Washington, D.C. area.
Calvert Group, Ltd., parent of the Fund's
Advisor, 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 March 31, 1997, Calvert
Group managed and administered assets in excess
of $5.1 billion and more than 225,000
shareholder and depositor accounts.
.................................................
The Advisor receives a fee based on a
percentage of the Fund's assets.
The respective Investment Advisory Agreements
between the Funds and the Advisor both provide
that the Advisor is entitled to a base annual
fee, payable monthly, of 0.80% of the Capital
Accumulation Fund's, and 0.90% of the New
Vision Small Cap Fund's, average daily net
assets. For its services during the fiscal year
ended March 31, 1997, pursuant to the
Investment Advisory Agreements, the Advisor
received an investment advisory fee of 0.80% of
the Capital Accumulation Fund's average daily
net assets, and waived the advisory fee for the
New Vision Small Cap Fund.
With respect to the Capital Accumulation Fund,
the Advisor may earn (or have its fee reduced
by) a performance adjustment based on the
extent to which performance of the Fund exceeds
or trails the Standard & Poor's 400 Mid-Cap
Index:
Performance versus the Performance Fee
S&P 400 Mid-Cap Index Adjustment
.................................................
10% to less than 25% 0.01%
25% to less than 40% 0.03%
40% or more 0.05%
For its services for fiscal year 1997, the
Advisor received, pursuant to the Investment
Advisory Agreement, an advisory fee of 0.80% of
the Fund's average daily net assets, which
included a performance adjustment of 0.0028%.
The Advisor may in its discretion defer its
fees or assume the Fund's operating expenses.
The Capital Accumulation Fund may use a
multi-manager approach.
The Capital Accumulation Fund has a pool of
five investment subadvisors ("Subadvisors")
ready to manage the Fund's assets. The
subadvisors are listed below, the asterisk
indicates the subadvisor(s) currently
comprising the management team.
Subadvisor Ownership
.................................................
*Brown Capital African American
Fortaleza Asset Management Hispanic/Women
Apodaca Hispanic American
New Amsterdam Women
Sturdivant African American
.................................................
The Advisor has retained a consultant to make
recommendations on allocations to Subadvisors.
The Advisor will select which Subadvisors will
manage the Capital Accumulation Fund's assets
at any given time and the allocation of assets
among the managers. Each firm has selected a
performance index against which it will be
measured with respect to payment of a
performance fee, as explained in the next
section.
.................................................
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 earnings per share growth
rates greater than the market, are more
profitable than the market, and have relatively
low price-earnings ratios. Its performance
index is a blended 60% Russell 1000 Growth and
40% Russell 2000.
Eddie C. Brown is founder and President of
Brown Capital 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
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.
The Capital Accumulation Fund's remaining pool
of Subadvisors are described in the SAI. See
"Investment Advisor and Subadvisors."
<PAGE>
Capital Accumulation Fund 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. 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.
.................................................
Portfolio Advisory Services, Inc. ("PASI") is
the investment subadvisor to the New Vision
Small Cap Fund.
PASI's principal business office is 725 South
Figueroa Street, Suite 2328, Los Angeles,
California, 90017. As of March 31, 1997, PASI
managed in excess of $244 million, including
mutual fund assets. PASI manages the investment
and reinvestment of the assets of the Fund,
although the Advisor may screen potential
investments for compatibility with the Fund's
social criteria. PASI's investment style
features quantitative screens and in-depth
"bottom-up" fundamental analysis to identify
superior growth stocks.
.................................................
Portfolio Manager for the New Vision Small Cap
Fund
The portfolio management team for the New
Vision Small Cap Fund (since inception) is led
by Cedd Moses, Director and Managing Director
of Investments of PASI, and PASI's principal
shareholder. Mr. Moses earned a Bachelor of
Science in Mechanical Engineering from UCLA in
1982, and subsequently worked with several
securities firms before founding PASI in 1988.
Mr. Moses is assisted by portfolio managers
Kathleen Kalp and Stuart L. Peterson, both firm
vice presidents. Ms. Kalp, a member of the
investment policy committee, is responsible for
the general analysis of securities. In 1990,
she joined Pilgrim America where her
responsibilities included general equity
analysis for the $250 million "Magnacap" Growth
and Income Fund. Ms. Kalp began her career in
1984 with William O'Neil & Co. as a research
analyst. She has an MBA from Loyola Marymount
University, a BA in Business Economics from the
University of California at Santa Barbara, and
is currently a CFA Level III candidate.
<PAGE>
Mr. Peterson, also an investment policy
committee member, is responsible for the
general analysis of securities and development
of PASI's original security screens.
Previously, he worked at Chase Manhattan Bank
in the Financial Products Group (1994),
analyzing investment management industry trends
and various derivative products. Mr. Peterson
began his career with Lehman Brothers in 1989,
and was a Registered Representative at Dean
Witter Reynolds, Inc. from 1990 to 1993. He
received an MBA in Analytic Finance from the
University of Chicago and a BA in Economics
from the University of California, Los Angeles.
The Investment Subadvisory Agreement between
the Advisor and PASI provides that PASI is
entitled to a base subadvisory fee of 0.47% of
the Fund's average daily net assets managed by
PASI. PASI's fee is paid by the Advisor out of
the fee the Advisor receives from the Fund.
The Funds have obtained an exemptive order from
the Securities and Exchange Commission to
permit them, pursuant to approval by the Board
of Directors/Trustees, to enter into and
materially amend contracts with a Subadvisor
without shareholder approval. See "Investment
Advisor and Subadvisor" in the SAI for further
details.
.................................................
Calvert Administrative Services Company
provides administrative services for the Fund.
Calvert Administrative Services Company
("CASC"), an affiliate of the Advisor, provides
certain administrative services to the Fund,
including the preparation of regulatory filings
and shareholder reports, the daily
determination of its net asset value per share
and dividends, and the maintenance of its
portfolio and general accounting records. For
providing such services, CASC receives an
annual fee, payable monthly, from both Funds of
0.10% of the respective Fund's average daily
net assets.
.................................................
Calvert Distributors, Inc. serves as
underwriter to market the Funds' shares.
Calvert Distributors, Inc. ("CDI") is both
Funds' principal underwriter and distributor.
Under the terms of its underwriting agreement
with the Funds, CDI markets and distributes the
Funds' shares and is responsible for payment of
commissions and service fees to broker-dealers,
banks, and financial services firms,
preparation of advertising and sales
literature, and printing and mailing of
prospectuses to prospective investors.
.................................................
The transfer agent keeps your account records.
Calvert Shareholder Services, Inc. is both
Funds' transfer, dividend disbursing and
shareholder servicing agent.
<PAGE>
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 two classes of shares:
Class A Shares - Front End Load Option
Class A shares are sold with a front-end sales
charge at the time of purchase. Class A shares
are not subject to a sales charge when they are
redeemed.
Class C shares - Level Load Option
Class C shares are sold without a sales charge
at the time of purchase or redemption.
.................................................
Class C shares have higher expenses than Class
A shares.
Each 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% with respect to the
Capital Accumulation Fund, and up to 0.25% with
respect to the New Vision Small Cap Fund,
annually of the average daily net asset value
of Class A shares, while payments under Class C
Distribution Plan are 1.00% of the average
daily net asset value of Class C shares.
.................................................
Considerations for deciding which class of
shares to buy.
Income distributions for Class A shares will
probably be higher than those for Class C
shares, as a result of the distribution
expenses described above. (See also "Total
Return") You should consider Class A shares if
you qualify for a reduced sales charge under
Class A. Class A shares may also be more
appropriate for larger accounts or if you plan
to hold the shares for several years. Class C
shares are not available for investments of $1
million or more.
<PAGE>
Class A Shares
Class A shares are offered at net asset value
plus a front-end sales charge as follows:
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Concession
As a % of As a % of to Dealers as a
Amount of Offering Net Amount % of Amount
Investment 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%*
</TABLE>
*CDI reserves the right to recoup any portion
of the amount paid to the dealer if the
investor redeems some or all of the shares from
the Fund within twelve months of the time of
purchase.
Sales charges on Class A shares may be reduced
or eliminated in certain cases. See Exhibit A
to this prospectus.
The sales charge is paid to CDI, which in turn
normally reallows a portion to your
broker-dealer. Upon written notice to dealers
with whom it has dealer agreements, CDI may
reallow up to the full applicable sales charge.
Dealers to whom 90% or more of the entire sales
charge is reallowed may be deemed to be
underwriters under the Securities Act of 1933.
In addition to any sales charge reallowance or
finder's fee, your broker-dealer, or other
financial service firm through which your
account is held, currently will be paid
periodic service fees at an annual rate of up
to 0.25% of the average daily net asset value
of Class A shares held in accounts maintained
by that firm.
.................................................
Class A Distribution Plan
Each Fund has adopted a Distribution Plan with
respect to its Class A shares (the "Class A
Distribution Plan"), which provides for
payments at a maximum rate of 0.35% with
respect to the Capital Accumulation Fund, and
0.25% with respect to the New Vision Small Cap
Fund, of the average daily net asset value of
Class A shares, to pay expenses associated with
the distribution and servicing of Class A
shares. Amounts paid by the Fund to CDI under
the Class A Distribution Plan are used to pay
to broker-dealers and others, including CDI
salespersons who service accounts, service fees
at an annual rate of up to 0.25% of the average
daily net asset value of Class A shares, and to
pay CDI for its marketing and distribution
expenses, including, but not limited to,
preparation of advertising and sales literature
and the printing and mailing of prospectuses to
prospective investors. During the fiscal year
ended March 31, 1997, Class A distribution Plan
expenses for the Capital Accumulation Fund were
0.35% and were waived for the New Vision Small
Cap Fund.
<PAGE>
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
Each Fund has adopted a Distribution Plan with
respect to its Class C shares (the "Class C
Distribution Plan"), which provides for
payments at an annual rate of up to 1.00% of
the average daily net asset value of Class C
shares, to pay expenses of the distribution and
servicing of Class C shares. Amounts paid by
the Fund under the Class C Distribution Plan
are currently used by CDI to pay broker-dealers
and other selling firms 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 March
31, 1997, Class C Distribution Plan expenses
for the Capital Accumulation Fund were 1.00% of
the average daily net assets. For the period
ended March 31, 1997, distribution expenses
were waived for the New Vision Small Cap Fund.
.................................................
Arrangements with Broker-Dealers and Others
CDI may also pay additional concessions,
including non-cash promotional incentives, such
as merchandise or trips, to dealers employing
registered representatives who have sold or are
expected to sell a minimum dollar amount of
shares of the Fund and/or shares of other Funds
underwritten by CDI. CDI may make expense
reimbursements for special training of a
dealer's registered representatives,
advertising or equipment, or to defray the
expenses of sales contests. CDI may receive
reimbursement of eligible marketing and
distribution expenses from the Fund's Rule
12b-1 Distribution Plan and in compliance with
the rules of the NASD.
Broker-dealers or others may receive different
levels of compensation depending on which class
of shares they sell. Payments pursuant to a
Distribution Plan are included in the operating
expenses of the class.
<PAGE>
HOW TO BUY SHARES
METHOD INITIAL INVESTMENT ADDITIONAL
INVESTMENT
BY MAIL $2,000 minimum $250 minimum
Please make your check payable Please make your check payable
to the Fund ad mail it to the Fund and mail it
with your application to: with your investment slip to:
Calvert Group Calvert Group
P.O. Box 419544 P.O. Box 419544
Kansas City, MO 64141-6544 Kansas City, MO 64141-6544
BY REGISTERED, Calvert Group Calvert Group
CERTIFIED, OR c/o NFDS, 6th Floor c/o NFDS, 6th Floor
OVERNIGHT MAIL 1004 Baltimore 1004 Baltimore
Kansas City, MO 64105-1807 Kansas City, MO 64105-1807
THROUGH $2,000 minimum $250 minimum
BROKER
AT THE CALVERT Visit the Calvert Branch Office to make investments by check.
BRANCH OFFICE See the back cover page for the address.
FOR ALL OPTIONS BELOW, PLEASE CALL YOUR
FINANCIAL PROFESSIONAL OR
CALVERT GROUP AT 800-368-2745
BY EXCHANGE $2,000 minimum $250 minimum
(FROM YOUR
ACCOUNT IN When opening an account by exchange, your new account
ANOTHER must be established with the same name (s), address and taxpayer
CALVERT identification number as your existing Calvert account.
FUND)
BY BANK WIRE $2,000 minimum $250 minimum
BY CALVERT Not Available $50 minimum
MONEY for Initial Investment
CONTROLLER
*Please allow sufficient time for Calvert Group to process your initial
request for this service, normally 10 business days. The maximum transaction
amount is $300,000, and your purchase request must be received by 4:00 p.m.
Eastern time.
<PAGE>
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/Trustees 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. All your purchases must be made
in U.S. dollars and checks must be drawn on
U.S. banks. No cash will be accepted. Each Fund
reserves the right to suspend the offering of
shares for a period of time or to reject any
specific purchase order. If your check is not
paid, your purchase will be canceled 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 may hold
payment on redemptions until it is reasonably
satisfied that the investment is collected
(normally up to 10 business days from purchase
date). To avoid this collection period, you can
wire federal funds from your bank, which may
charge you a fee. As a convenience, check
purchases can be received at Calvert's offices
for overnight mail delivery to the transfer
agent and will be credited when received by the
transfer agent. Any check purchase received
without an investment slip may cause delayed
crediting.
Certain financial institutions or
broker-dealers which have entered into a sales
agreement with CDI may enter confirmed purchase
orders on behalf of customers by phone, with
payment to follow within a 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.
<PAGE>
EXCHANGES
.................................................
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.
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.
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.
Class C shares may be exchanged for shares
of another fund, but will be charged the
front-end sales charge, if applicable.
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,
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.
<PAGE>
OTHER CALVERT GROUP SERVICES
.................................................
Calvert Information Network
Calvert Group has a round-the-clock telephone
service that lets existing customers obtain
prices, yields, 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
requests will be honored. All Calvert Money
Controller transaction requests must be
received by 4:00 p.m. Eastern time.
You may also arrange systematic monthly or
quarterly investments (minimum $50) into your
Calvert Group account. After you give us proper
authorization, your bank account will be
debited to purchase Fund shares. A debit entry
will appear on your bank statement. Share
purchases made through Calvert Money Controller
will be subject to the applicable sales charge.
.................................................
Telephone Transactions
Calvert may record all telephone calls.
You may purchase, redeem, or exchange shares,
wire funds and use Calvert Money Controller by
telephone if you have pre-authorized service
instructions. You automatically have telephone
privileges unless you elect otherwise. You
automatically have telephone privileges unless
you elect otherwise. Each 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 while saving
paper and postage expenses.
If you have multiple accounts with Calvert, you
may receive combined mailings of statements,
confirms, prospectuses, semi-annual and annual
reports. Please contact Calvert Investor
Relations at 800-368-2745 to consolidate
mailings and 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 21. 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.
403(b)(7) Custodial Accounts: available to
employees of most non-profit organizations
and public schools and universities.
<PAGE>
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 NAV 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 each of your fund
accounts of at least $1,000, per Fund, per
class. If, due to redemptions, the account
falls below $1,000, or you fail to invest at
least $1,000, your account may be charged a
service fee or closed and the proceeds mailed
to you. You will be given a notice that your
account will be closed after 30 days if the
balance is not brought up to the required
minimum amount.
.................................................
By Mail To: Calvert Group, P.O. Box 419544
Kansas City, MO 64141-6544.
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, Letter of instruction and corporate resolution, signed by
Associations person(s) authorized to act on the account, accompanied
by signature guarantee(s).
Trusts Letter of instruction signed by the Trustee(s)(as
Trustees), with a signature guarantee.(If the Trustee's
name is not registered on your account, provide a
copy of the trust document,certified within the
last 60 days.)
By Telephone
Please call 800-368-2745. You may redeem shares
from your account by telephone and have your
money mailed to your address of record or wired
to a bank you have previously authorized. A
charge of $5 is imposed on wire transfers of
less than $1,000. See "Telephone Transactions."
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."
.................................................
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. 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, CAPITAL GAINS AND TAXES
.................................................
Each year, both Funds distribute substantially
all of their respective net investment income
to their shareholders.
Dividends from a Fund's net investment income
are declared and paid annually. Net investment
income consists of the interest income, net
short-term capital gains, if any, and dividends
declared and paid on investments, less
expenses. Distributions of a 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 a Fund once a year; however, a 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.
<PAGE>
Dividend and Distribution Payment Options
Dividends and any distributions are
automatically reinvested in the same Fund at
NAV (no sales charge), unless you elect to have
the dividends of $10 or more paid in cash (by
check or by Calvert Money Controller).
Dividends and distributions may be
automatically invested in an identically
registered account with the same account number
in any other Calvert Group Fund at NAV. If
reinvested in the same Fund account, new shares
will be purchased at NAV on the reinvestment
date, which is generally 1 to 3 days prior to
the payment date. You must notify the 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 a
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
Each 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 Funds will mail you Form 1099-DIV
in January indicating the federal tax status of
your dividends. If distributions exceed the
respective Fund's net investment income and
capital gain for the year, the excess will
reduce your tax basis for your shares in that
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, each 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 W9,
Federal law requires the Funds 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
Funds reserve 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 Funds 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 SAI.
.................................................
Group Purchases
If you are a member of a qualified group, you
may purchase shares of a 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.
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 Funds, nor CDI, nor any affiliate
thereof will reimburse a plan or participant
for any sales charges paid prior to receipt of
such written communication and confirmation by
Calvert Group. Plan administrators should send
requests for the waiver of sales charges based
on the above conditions to: Calvert Group
Retirement Plans, 4550 Montgomery Avenue, Suite
1000N, Bethesda, Maryland 20814.
.................................................
Other Circumstances
There is no sales charge on shares of any fund
(portfolio or series) of the Calvert Group of
Funds sold to:
(1) Directors, Trustees, Officers, Advisory
Council Members, employees of the Calvert Group
of Funds or affiliated companies, employees of
broker dealers distributing the Funds' shares
and family members of the above; (2) Purchases
made through a Registered Investment Advisor;
(3) Trust departments of banks or savings
institutions for trust clients of such bank or
institution; and (4) Purchases through a broker
maintaining an omnibus account with the Fund
and purchases are made by (a) investment
advisors or financial planners placing trades
for their own accounts (or the accounts of
their clients) and who charge a management,
consulting, or other fee for their services; or
(b) clients of such investment advisors or
financial planners who place trades for their
own accounts if such accounts are linked to the
master account of such investment advisor or
financial planner on the books and records of
the broker or agent; or (c) retirement and
deferred compensation plans and trusts,
including, but not limited to, those defined in
Section 401(a) or Section 403(b) of the I.R.C., and "rabbi
trusts."
.................................................
Dividends and Capital Gain Distributions from
other Calvert Group Funds
You may prearrange to have your dividends and
capital gain distributions from another Calvert
Group Fund automatically invested in your
account with no additional sales charge.
.................................................
Purchases made at net asset value ("NAV")
Except for money market funds, if you make a
purchase at NAV, you may exchange that amount
to another fund at no additional sales charge.
.................................................
Reinstatement Privilege
If you redeem Fund shares and then within 30
days decide to reinvest in the same Fund, you
may do so at the NAV next computed after the
reinvestment order is received, without a sales
charge. You may use the reinstatement privilege
only once. The Funds reserve the right to
modify or eliminate this privilege.
<PAGE>
CALVERT WORLD VALUES FUND, INC.
CAPITAL ACCUMULATION FUND
Statement of Additional Information
July 31, 1997
INVESTMENT ADVISOR
Calvert Asset Management Company, Inc.
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
TRANSFER AGENT
Calvert Shareholder Services, Inc.
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
INDEPENDENT ACCOUNTANTS
Coopers & Lybrand, L.L.P.
217 E. Redwood Street
Baltimore, Maryland 21202-3316
PRINCIPAL UNDERWRITER
Calvert Distributors, Inc.
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
TABLE OF CONTENTS
Investment Objective and Policies 1
Investment Restrictions 8
Purchase and Redemption of Shares 10
Reduced Sales Charges (Class A) 11
Net Asset Value 11
Calculation of Total Return 11
Advertising 12
Dividends and Taxes 13
Directors and Officers 15
Investment Advisor and Subadvisors 17
Transfer and Shareholder Servicing Agent 19
Method of Distribution 20
Portfolio Transactions 21
Independent Accountants and Custodians 21
General Information 22
Financial Statements 22
Appendix 22
STATEMENT OF ADDITIONAL INFORMATION-July 31, 1997
CALVERT CAPITAL ACCUMULATION FUND
4550 Montgomery Avenue, Bethesda, Maryland 20814
New Account (800) 368-2748
Information: (301) 951-4820
Shareholder Services: (800) 368-2745
Broker (800) 368-2746
Services: (301) 951-4850
TDD for the Hearing-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 July 31, 1997, 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 are within the range of
capitalization of the S&P 400 Mid-Cap Index, but which may be larger or
smaller as deemed appropriate.
Investments may also include, but are not limited to, preferred
stocks, foreign securities, convertible securities, 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
particular months in the future at a specified price. 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 against anticipated changes in the
market value of 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 purchase a
put or call option on securities (including a straddle or spread) only if the
value of that option premium, when aggregated with the premiums on all other
options on securities held by the Fund, does not exceed 5% of the Fund's total
assets.
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.
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), which provides that no
more than 35% of its assets is in securities rated below BBB, or in unrated
securities determined by the Advisor to be comparable to securities rated
below BBB. 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 and 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.
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.
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 "return without maximum sales load" 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 "return without maximum
sales load" which do not reflect deduction of the sales charge. Return without
maximum sales load, 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 return without maximum sales
load, P = the entire $1,000 hypothetical initial investment and does not
reflect deduction of any sales charge. Return may be advertised for other
periods, such as by quarter, or cumulatively for more than one year.
Return for the Fund's shares are as follows:
Class A Shares Class A Shares
Without Total Return
Maximum With Maximum Class C Shares
Sales Load Sales Load Total Return
9/30/96 to 3/31/97 -5.59% -10.05% -6.18%
Since inception,
10/31/94 16.97% 14.63% 16.15%
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.
Calvert Group is the nation's leading family of socially responsible
mutual funds, both in terms of socially responsible mutual fund assets under
management, and number of socially responsible mutual fund portfolios offered
(source: Social Investment Forum, December 31, 1996). Calvert Group was also
the first to offer a family of socially responsible mutual fund portfolios.
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; or 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.
DIRECTORS AND OFFICERS
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. DOB: 05/15/48.
*BARBARA J. KRUMSIEK, President and Director. Ms. Krumsiek serves as
President, Chief Executive Officer and Vice Chairman of Calvert Group, Ltd.
and as an officer and director of each of its affiliated companies. She is
President and Director of Calvert-Sloan Advisers, L.L.C., and a
trustee/director of each of the investment companies in the Calvert Group of
Funds. DOB: 08/09/52.
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. DOB: 12/13/44.
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. DOB: 7/3/24.
*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. DOB: 07/20/48.
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.
DOB: 5/29/59.
MOHAMMAD YUNUS, Director. Mr. Yunus is a Managing Director of Grameen
Bank in Bangladesh. Address: Grameen Bank, Mirpur Two, Dhaka 1216, Bangladesh.
DOB: 6/28/40.
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. DOB: 01/13/50.
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. DOB: 08/12/47.
DANIEL K. HAYES, Vice President. Mr. Hayes is Vice President of
Calvert Asset Management Company, Inc. and is an officer of each of the other
investment companies in the Calvert Group of Funds. DOB: 09/09/50.
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. DOB: 07/24/52.
SUSAN WALKER BENDER, Esq., Assistant Secretary. Ms. Bender is
Associate General Counsel of Calvert Group and an officer of each of its
subsidiaries and Calvert-Sloan Advisers, L.L.C. She is also an officer of each
of the other investment companies in the Calvert Group of Funds. DOB: 01/29/59.
KATHERINE STONER, Esq., Assistant Secretary. Ms. Stoner is Associate
General Counsel of Calvert Group and an officer of each of its subsidiaries
and Calvert-Sloan Advisers, L.L.C. She is also an officer of each of the other
investment companies in the Calvert Group of Funds. DOB: 10/21/56.
LISA CROSSLEY, Esq., Assistant Secretary and Compliance Officer. Ms.
Crossley is Associate General Counsel of Calvert Group and an officer of each
of its subsidiaries and Calvert-Sloan Advisers, L.L.C. She is also an officer
of each of the other investment companies in the Calvert Group of Funds. DOB:
12/31/61.
IVY WAFFORD DUKE, Esq., Assistant Secretary. Ms. Duke is Assistant
Counsel of Calvert Group and an officer of each of its subsidiaries and
Calvert-Sloan Advisers, L.L.C. She is also an officer of each of the other
investment companies in the Calvert Group of Funds. DOB: 09/07/68.
*"Interested persons" of the Fund under the Investment Company Act of 1940.
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 1997, Directors of the Fund not affiliated with the
Fund's Advisor were paid aggregate fees and expenses of $3,072.
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
(Fiscal Year 1997)
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Name of Director Aggregate Pension or Total
Compensation Retirement Compensation
from Portfolio Benefits from Registrant
for service Accrued as and Fund
as Director part of Complex paid
Registrant to Directors <F2>
Expenses<F1>
John Guffey, Jr. $101 $0 $12,564
Terrence J. Mollner $0 $0 $10,158
Rustum Roy $0 $0 $2,000
D. Wayne Silby $101 $0 $14,832
Tessa Tennant $0 $2,000 $2,000
Mohammad Yunus $0 $2,000 $2,000
<FN>
<F1> None of the Directors have chosen to defer a portion of their
compensation as of March 31, 1997.
<F2> As of December 31, 1997, the Fund complex consists of nine (9)
registered investment companies.
</FN>
</TABLE>
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.
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. For
the 1996 fiscal period, the Advisor received a fee of $243,241 and there were
no expenses reimbursed or fees voluntarily waived. For the 1997 fiscal period,
the Advisor received a fee of $177,369. There were no expenses reimbursed or
fees voluntarily waived.
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 Fund's current Subadvisor is described in the Prospectus. See
"Management of the Fund." The remaining pool of Sub-Advisors are described
below.
Apodaca Investment Group, Inc.: Apodaca Investment Group, 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. Its performance index is the
Russell 2000.
Jerry Apodaca is Vice President of Apodaca Investment Group, Inc. He
earned a B.A. from the University of New Mexico in 1983, and has had active
business experience since that time.
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. Its performance index is the Russell 2000.
Ms. Margarita Perez is the founder, President and Portfolio Manager
of Fortaleza, and has over 14 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 totaling in excess of $100 million.
Ms. Perez is a native of Puerto Rico. She earned an MBA fro DePaul
University School of Commerce. Ms. Perez is a member of various professional
organizations including the American Institute of CPA s, National Society of
Hispanic MBA s, Association for Investment Management and Research, and the
National Association of Securities Professionals. She is also a trustee of the
Chicago Historical Society.
New Amsterdam Partners, L.P.: 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 conjunction with fundamental analysis of
companies, is the key to understanding and maximizing investment returns.
Michelle Clayman, General Partner of New Amsterdam, 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 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.
Sturdivant & Co., Inc.: Sturdivant & Co., Inc., of Clementon, New Jersey,
seeks to identify undervalued companies or companies 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 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, 1996 and 1997 fiscal periods, CASC received $6,251, $30,405 and
$22,248 in administrative fees, respectively.
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, 1996 and 1997, CSSI received $13,179, $134,497, and $77,552 from the
Fund, respectively.
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 1997, CDI received distribution fees of $72,378 under the Class
A Distribution Plan. Of the Class A distribution expenses paid in fiscal 1997,
$44,432 was used to compensate dealers for their share distribution
promotional services, and the remainder was used for Advertising. CDI also
receives the portion of the sales charge in excess of the dealer reallowance.
CDI received net sales charges of $23,647, $151,785, and $49,218 for fiscal
periods ending 1995, 1996 and 1997, respectively.
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. For
the fiscal year 1996, Class C Distribution Plan expenses totaled $27,695. That
amount was used entirely to compensate dealers distributing shares, and to
compensate the underwriter. For the fiscal year 1997, Class C Distribution
Plan expenses totaled $15,686.
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.
Certain broker-dealers, and/or other persons may receive compensation
from the investment advisor, underwriter, or their affiliates for the sale and
distribution of the securities or for services to the Fund. Such compensation
may include additional compensation based on assets held through that firm
beyond the regularly scheduled rates, and finder's fee payments to firms whose
representatives are responsible for soliciting a new account where the
accountholder does not choose to purchase through that firm.
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, 1996 and 1997 fiscal periods, the
portfolio turnover rates of the Fund were 95%, 114% and 117%, respectively. 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. During fiscal year 1996, $177,000 in aggregate brokerage
commissions were paid to broker-dealers. During fiscal year 1997, $17,728 in
aggregate brokerage commissions were paid to broker-dealers.
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
1998. 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 International 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 March 31, 1997, are expressly incorporated by reference
and made a part of this Statement of Additional Information. A copy of the
Annual Report may be obtained free of charge by writing or calling The 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.
<PAGE>
LETTER OF INTENT
Date
Calvert Distributors, Inc.
4550 Montgomery Avenue
Bethesda, MD 20814
Ladies and Gentlemen:
By signing this Letter of Intent, or affirmatively marking the Letter
of Intent option on my Fund Account Application Form, I agree to be bound by
the terms and conditions applicable to Letters of Intent appearing in the
Prospectus and the Statement of Additional Information for the Fund and the
provisions described below as they may be amended from time to time by the
Fund. Such amendments will apply automatically to existing Letters of Intent.
I intend to invest in the shares of: (Fund or Portfolio name*)
during the thirteen (13) month period from the date of my first purchase
pursuant to this Letter (which cannot be more than ninety (90) days prior to
the date of this Letter or my Fund Account Application Form, whichever is
applicable), an aggregate amount (excluding any reinvestments of
distributions) of at least fifty thousand dollars ($50,000) which, together
with my current holdings of the Fund (at public offering price on date of this
Letter or my Fund Account Application Form, whichever is applicable), will
equal or exceed the amount checked below:
__ $50,000 __ $100,000 __ $250,000 __ $500,000 __ $1,000,000
Subject to the conditions specified below, including the terms of
escrow, to which I hereby agree, each purchase occurring after the date of
this Letter will be made at the public offering price applicable to a single
transaction of the dollar amount specified above, as described in the Fund's
prospectus. No portion of the sales charge imposed on purchases made prior to
the date of this Letter will be refunded.
I am making no commitment to purchase shares, but if my purchases
within thirteen months from the date of my first purchase do not aggregate the
minimum amount specified above, I will pay the increased amount of sales
charges prescribed in the terms of escrow described below. I understand that
4.75% of the minimum dollar amount specified above will be held in escrow in
the form of shares (computed to the nearest full share). These shares will be
held subject to the terms of escrow described below.
From the initial purchase (or subsequent purchases if necessary),
4.75% of the dollar amount specified in this Letter shall be held in escrow in
shares of the Fund by the Fund's transfer agent. For example, if the minimum
amount specified under the Letter is $50,000, the escrow shall be shares
valued in the amount of $2,375 (computed at the public offering price adjusted
for a $50,000 purchase). All dividends and any capital gains distribution on
the escrowed shares will be credited to my account.
If the total minimum investment specified under the Letter is
completed within a thirteen month period, escrowed shares will be promptly
released to me. However, shares disposed of prior to completion of the
purchase requirement under the Letter will be deducted from the amount
required to complete the investment commitment.
Upon expiration of this Letter, the total purchases pursuant to the
Letter are less than the amount specified in the Letter as the intended
aggregate purchases, Calvert Distributors, Inc. ("CDI") will bill me for an
amount equal to the difference between the lower load I paid and the dollar
amount of sales charges which I would have paid if the total amount purchased
had been made at a single time. If not paid by the investor within 20 days,
CDI will debit the difference from my account. Full shares, if any, remaining
in escrow after the aforementioned adjustment will be released and, upon
request, remitted to me.
I irrevocably constitute and appoint CDI as my attorney-in-fact, with
full power of substitution, to surrender for redemption any or all escrowed
shares on the books of the Fund. This power of attorney is coupled with an
interest.
The commission allowed by Calvert Distributors, Inc. to the
broker-dealer named herein shall be at the rate applicable to the minimum
amount of my specified intended purchases.
The Letter may be revised upward by me at any time during the
thirteen-month period, and such a revision will be treated as a new Letter,
except that the thirteen-month period during which the purchase must be made
will remain unchanged and there will be no retroactive reduction of the sales
charges paid on prior purchases.
In determining the total amount of purchases made hereunder, shares
disposed of prior to termination of this Letter will be deducted. My
broker-dealer shall refer to this Letter of Intent in placing any future
purchase orders for me while this Letter is in effect.
Dealer
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. OTHER INFORMATION
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.,
International Equity Fund and Capital Accumulation Fund are
incorporated by reference to Registrant's Annual Report dated
March 31, 1997, and filed June 11, 1997.
(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, (incorporated by reference to
Registrants Post-Effective Amendment No. 6, January
31, 1997).
11. Consent of Independent Accountants to Use of Report;
(filed herewith).
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, (incorporated
by reference to Registrant's Post-Effective
Amendment No. 5, January 31, 1996).
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,
The Calvert Fund, and Calvert Municipal Fund, Inc.
Item 26. Number of Holders of Securities
As of June 30, 1997, there were 19,546 holders of record of
Registrant's Class A shares of common stock for the Calvert World
Values International Equity Fund series.
As of June 30, 1997, there were 1,094 holders of record of
Registrant's Class C shares of common stock for the Calvert World
Values International Equity Fund series.
As of June 30, 1997, there were 6,054 holders of record of
Registrant's Class A shares of common stock for the Calvert World
Values Capital Accumulation Fund series.
As of June 30, 1997, there were 629 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
Barbara J. Krumsiek Calvert Asset Management Officer
Company, Inc. and
Investment Advisor Director
4550 Montgomery Avenue
Bethesda, Maryland 20814
--------------
Calvert-Sloan Advisers, L.L.C. Director
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Group, Ltd. Officer
Holding Company and
4550 Montgomery Avenue Director
Bethesda, Maryland 20814
---------------
Calvert Shareholder Officer
Services, Inc. and
Transfer Agent Director
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Administrative Officer
Services Company and
Service Company Director
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Distributors, Inc. Director
Broker-Dealer and Officer
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
First Variable Rate Fund for Officer
Government Income and
Calvert Tax-Free Reserve Trustee
Calvert Social Investment Fund
Money Management Plus
The Calvert Fund
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Acacia Capital Corporation Officer
Calvert Municipal Fund, Inc. and
Calvert World Values Fund, Inc Director
Calvert New World Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
<PAGE>
Item 28. Business and Other Connections of Investment Adviser
Name of Company, Principal
Name Business and Address Capacity
Ronald M. First Variable Rate Fund for Government Income
Wolfsheimer 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. Director
Broker-Dealer and
4550 Montgomery Avenue Officer
Bethesda, Maryland 20814
---------------
Calvert-Sloan Advisers, LLC Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Md. 20814
---------------
<PAGE>
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, Inc. Officer
Investment Company and
4550 Montgomery Avenue Director
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
---------------
<PAGE>
Item 28. Business and Other Connections of Investment Adviser
Name of Company, Principal
Name Business and Address Capacity
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
---------------
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
---------------
Calvert New World Fund, Inc. Director
Investment Company and
4550 Montgomery Avenue Officer
Bethesda, Maryland 20814
---------------
Calvert-Sloan Advisers, LLC Director
Investment Advisor and
4550 Montgomery Avenue Officer
Bethesda, Md. 20814
---------------
<PAGE>
Charles T. Nason Acacia Mutual Life Insurance Officer
Acacia National Life Insurance and
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
---------------
Gardner Montgomery Company Director
Tax Return Preparation Services
51 Louisiana Avenue, NW
Washington, D.C. 20001
----------------
Acacia Federal Savings Bank Director
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 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
---------------
Calvert Shareholder Services, Inc. Director
Transfer Agent
4550 Montgomery Avenue
Bethesda, MD 20814
---------------
Calvert Social Investment Fund Trustee
Investment Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
-----------------
The Advisors Group, Inc. Director
Broker-Dealer and
Investment Advisor
51 Louisiana Avenue, NW
Washington, D.C. 20001
---------------
<PAGE>
Item 28. Business and Other Connections of Investment Adviser
Name of Company, Principal
Name Business and Address Capacity
Robert John. Acacia National Life Insurance Officer
H. Sands 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
---------------
Gardner Montgomery Company Officer
Tax Return Preparation Services and
51 Louisiana Avenue, NW Director
Washington, D.C. 20001
----------------
The Advisors Group, Inc. Director
Broker-Dealer and
Investment Advisor
51 Louisiana Avenue, NW
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
---------------
Calvert Shareholder Services, Inc. Director
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
<PAGE>
William M. Tartikoff Acacia National Life Insurance Officer
Insurance Company
51 Louisiana Avenue, NW
Washington, D.C. 20001
----------------
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. Director
Broker-Dealer and
4550 Montgomery Avenue Officer
Bethesda, Maryland 20814
----------------
Calvert-Sloan Advisers, L.L.C. Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
<PAGE>
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, Inc. Officer
Broker-Dealer
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert-Sloan Advisers, L.L.C. Officer
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.
Calvert New World Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
<PAGE>
Item 28. Business and Other Connections of Investment Adviser
Name of Company, Principal
Name Business and Address Capacity
Katherine Calvert Group, Ltd. Officer
Stoner 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
----------------
Calvert-Sloan Advisers, L.L.C. Officer
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.
Calvert New World Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
<PAGE>
Item 28. Business and Other Connections of Investment Adviser
Name of Company, Principal
Name Business and Address Capacity
Lisa Crossley 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
----------------
Calvert-Sloan Advisers, L.L.C. Officer
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.
Calvert New World Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
<PAGE>
Item 28. Business and Other Connections of Investment Adviser
Name of Company, Principal
Name Business and Address Capacity
Ivy Wafford Calvert Group, Ltd. Officer
Duke 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
----------------
Calvert-Sloan Advisers, L.L.C. Officer
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.
Calvert New World Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
<PAGE>
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
------------------
<PAGE>
Item 28. Business and Other Connections of Investment Adviser
Name of Company, Principal
Name Business and Address Capacity
Geoffrey Ashton Calvert Asset Management Officer
Company, Inc.
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Distributors, Inc. Officer
Broker-Dealer
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Item 28. Business and Other Connections of Investment Adviser
Name of Company, Principal
Name Business and Address Capacity
Annette Krakovitz Calvert Asset Management Officer
Company, Inc.
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
John Nichols Calvert Asset Management Officer
Company, Inc.
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
David Leach Calvert Asset Management Officer
Company, Inc.
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
<PAGE>
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, Calvert Municipal Fund, Inc.,
Calvert World Values Fund, Inc., and Acacia Capital Corporation's PRISM
variable annuity product.
(b) Positions of Underwriter's Officers and Directors
Name and Principal Position(s) with Position(s) with
Business Address Underwriter Registrant
Ronald M. Wolfsheimer Director, Senior Vice President
Vice President, Treasurer
and Controller
William M. Tartikoff Director, Senior Vice President,
Vice-President, Secretary
Secretary, and
General Counsel
Barbara J. Krumsiek Director and President Director and Sr.
Vice President
Steve Cohen Vice-President None
Karen Becker Vice-President None
Geoffrey Ashton Regional
Vice-President None
Tim McCabe Regional
Vice-President None
Susan Walker Bender Assistant Secretary Assistant Secretary
Katherine Stoner Assistant Secretary Assistant
Secretary
Lisa Crossley Compliance Officer Assistant Secretary
and Assistant Secretary
Ivy Wafford Duke Assistant Secretary Assistant Secretary
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.
<PAGE>
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 30th day of July, 1997.
CALVERT WORLD VALUES FUND, INC.
By: _________________________________
Barbara J. Krumsiek
President and Director
<PAGE>
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 on July 30, 1997.
Signature Title
__________**____________ Director and
Barbara J. Krumsiek Principal Executive Officer
__________**____________ Principal Accounting Officer
Ronald M. Wolfsheimer
__________**____________ Director
John G. Guffey, Jr.
__________**____________ Director
Terrence Mollner
__________**____________ Director
Rustum Roy
__________**____________ Director
D. Wayne Silby
__________**____________ Director
Tessa Tennant
______________________ Director
Mohammad Yunus
**By:____________________________
Name: Ivy Wafford Duke
as Attorney-in-fact
Executed by Ivy Wafford Duke
on behalf of those indicated pursuant
to a Power of Attorney dated
May 8, 1997, filed here with.
<PAGE>
EXHIBIT INDEX
Form N-1A
Item No.
Ex-23
24(b)(10) Form of Opinion and Consent of Counsel
Ex-23
24(b)(11) Independent Auditors' Consent
Ex-24 Power of Attorney
Ex-27
24(17) Financial Data Schedules
Exhibit 10
July 30, 1997
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. 7 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. 7 to its Registration Statement.
Sincerely,
Ivy Wafford Duke
Assistant Secretary
CONSENT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of Calvert World Values Funds, Inc.
We consent to the incorporation by reference in Post-Effective Amendment
No. 7 to the Registration Statement of Calvert World Values Funds, Inc. on Form
N-1A (File Numbers 33-45829 and 811-06563) of our report dated May 9, 1997, on
our audit of the financial statements and financial highlights of Calvert World
Values Funds, Inc., which report is included in the Annual Report to
Shareholders for the year ended March 31, 1997, which is incorporated by
reference in the Registration Statement. We also consent to the reference
to our firm under the captions "Financial Highlights" in the Prospectus
and "Independent Accountants and Custodians" in the Statement of Additional
Information.
COOPERS & LYBRAND L.L.P.
Baltimore, Maryland
July 17, 1997
POWER OF ATTORNEY
I, the undersigned Trustee/Director of Calvert World Values
Fund (the "Fund"), hereby constitute Ronald M. Wolfsheimer, William M.
Tartikoff, Susan Walker Bender, Katherine Stoner, Lisa Crossley, and Ivy
Wafford Duke my true and lawful attorneys, with full power to each of
them, to sign for me and in my name in the appropriate capacities, all
registration statements and amendments filed by the Fund with any
federal or state agency, and to do all such things in my name and behalf
necessary for registering and maintaining registration or exemptions
from registration of the Fund with any government agency in any
jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things
in my name and behalf to comply with the provisions of all federal,
state and foreign laws, regulations, and policy pronouncements affecting
the Fund, 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 Fund 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
Fund, 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.
Date
Signature
John G. Guffey, Jr.
Witness Name of Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Trustee/Director of Calvert World Values
Fund (the "Fund"), hereby constitute Ronald M. Wolfsheimer, William M.
Tartikoff, Susan Walker Bender, Katherine Stoner, Lisa Crossley, and Ivy
Wafford Duke my true and lawful attorneys, with full power to each of
them, to sign for me and in my name in the appropriate capacities, all
registration statements and amendments filed by the Fund with any
federal or state agency, and to do all such things in my name and behalf
necessary for registering and maintaining registration or exemptions
from registration of the Fund with any government agency in any
jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things
in my name and behalf to comply with the provisions of all federal,
state and foreign laws, regulations, and policy pronouncements affecting
the Fund, 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 Fund 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
Fund, 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.
Date
Signature
Terrence Mollner
Witness Name of Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Trustee/Director of Calvert World Values
Fund (the "Fund"), hereby constitute Ronald M. Wolfsheimer, William M.
Tartikoff, Susan Walker Bender, Katherine Stoner, Lisa Crossley, and Ivy
Wafford Duke my true and lawful attorneys, with full power to each of
them, to sign for me and in my name in the appropriate capacities, all
registration statements and amendments filed by the Fund with any
federal or state agency, and to do all such things in my name and behalf
necessary for registering and maintaining registration or exemptions
from registration of the Fund with any government agency in any
jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things
in my name and behalf to comply with the provisions of all federal,
state and foreign laws, regulations, and policy pronouncements affecting
the Fund, 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 Fund 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
Fund, 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.
Date Signature
Rustum Roy
Witness Name of Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Trustee/Director of Calvert World Values
Fund (the "Fund"), hereby constitute Ronald M. Wolfsheimer, William M.
Tartikoff, Susan Walker Bender, Katherine Stoner, Lisa Crossley, and Ivy
Wafford Duke my true and lawful attorneys, with full power to each of
them, to sign for me and in my name in the appropriate capacities, all
registration statements and amendments filed by the Fund with any
federal or state agency, and to do all such things in my name and behalf
necessary for registering and maintaining registration or exemptions
from registration of the Fund with any government agency in any
jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things
in my name and behalf to comply with the provisions of all federal,
state and foreign laws, regulations, and policy pronouncements affecting
the Fund, 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 Fund 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
Fund, 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.
Date Signature
D. Wayne Silby
Witness Name of Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Trustee/Director of Calvert World Values
Fund (the "Fund"), hereby constitute Ronald M. Wolfsheimer, William M.
Tartikoff, Susan Walker Bender, Katherine Stoner, Lisa Crossley, and Ivy
Wafford Duke my true and lawful attorneys, with full power to each of
them, to sign for me and in my name in the appropriate capacities, all
registration statements and amendments filed by the Fund with any
federal or state agency, and to do all such things in my name and behalf
necessary for registering and maintaining registration or exemptions
from registration of the Fund with any government agency in any
jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things
in my name and behalf to comply with the provisions of all federal,
state and foreign laws, regulations, and policy pronouncements affecting
the Fund, 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 Fund 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
Fund, 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.
Date Signature
Tessa Tennant
Witness Name of Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Trustee/Director of Calvert World Values
Fund (the "Fund"), hereby constitute Ronald M. Wolfsheimer, William M.
Tartikoff, Susan Walker Bender, Katherine Stoner, Lisa Crossley, and Ivy
Wafford Duke my true and lawful attorneys, with full power to each of
them, to sign for me and in my name in the appropriate capacities, all
registration statements and amendments filed by the Fund with any
federal or state agency, and to do all such things in my name and behalf
necessary for registering and maintaining registration or exemptions
from registration of the Fund with any government agency in any
jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things
in my name and behalf to comply with the provisions of all federal,
state and foreign laws, regulations, and policy pronouncements affecting
the Fund, 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 Fund 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
Fund, 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.
Date Signature
Barbara Krumsiek
Witness Name of Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Officer of Calvert World Values Fund (the
"Fund"), hereby constitute William M. Tartikoff, Susan Walker Bender,
Katherine Stoner, Lisa Crossley, and Ivy Wafford Duke my true and lawful
attorneys, with full power to each of them, to sign for me and in my
name in the appropriate capacities, all registration statements and
amendments filed by the Fund with any federal or state agency, and to do
all such things in my name and behalf necessary for registering and
maintaining registration or exemptions from registration of the Fund
with any government agency in any jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things
in my name and behalf to comply with the provisions of all federal,
state and foreign laws, regulations, and policy pronouncements affecting
the Fund, 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 Fund 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
Fund, 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.
Date Signature
Ronald M. Wolfsheimer
Witness Name of Officer
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000884110
<NAME> CALVERT WORLD VALUES FUND, INC.
<SERIES>
<NUMBER> 213
<NAME> CALVERT CAPITAL ACCUMULATION FUND, CLASS A
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-START> OCT-01-1996
<PERIOD-END> MAR-31-1997
<INVESTMENTS-AT-COST> 40200
<INVESTMENTS-AT-VALUE> 41265
<RECEIVABLES> 1033
<ASSETS-OTHER> 1966
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 44264
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 141
<TOTAL-LIABILITIES> 44123
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 37528
<SHARES-COMMON-STOCK> 1929
<SHARES-COMMON-PRIOR> 1767
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 2551
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 990
<NET-ASSETS> 41069
<DIVIDEND-INCOME> 101
<INTEREST-INCOME> 21
<OTHER-INCOME> 0
<EXPENSES-NET> 385
<NET-INVESTMENT-INCOME> (263)
<REALIZED-GAINS-CURRENT> 3451
<APPREC-INCREASE-CURRENT> (5480)
<NET-CHANGE-FROM-OPS> (2292)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 592
<NUMBER-OF-SHARES-REDEEMED> 430
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 162
<ACCUMULATED-NII-PRIOR> 39
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 165
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 406
<AVERAGE-NET-ASSETS> 41472
<PER-SHARE-NAV-BEGIN> 22.55
<PER-SHARE-NII> (0.14)
<PER-SHARE-GAIN-APPREC> (1.12)
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 21.29
<EXPENSE-RATIO> 1.86
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000884110
<NAME> CALVERT WORLD VALUES FUND, INC.
<SERIES>
<NUMBER> 241
<NAME> CALVERT CAPITAL ACCUMULATION FUND, CLASS C
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-START> OCT-01-1996
<PERIOD-END> MAR-31-1997
<INVESTMENTS-AT-COST> 40200
<INVESTMENTS-AT-VALUE> 41265
<RECEIVABLES> 1033
<ASSETS-OTHER> 1966
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 44264
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 141
<TOTAL-LIABILITIES> 44123
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 28928
<SHARES-COMMON-STOCK> 1469
<SHARES-COMMON-PRIOR> 142
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 87
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 75
<NET-ASSETS> 3054
<DIVIDEND-INCOME> 8
<INTEREST-INCOME> 2
<OTHER-INCOME> 0
<EXPENSES-NET> 49
<NET-INVESTMENT-INCOME> (39)
<REALIZED-GAINS-CURRENT> 261
<APPREC-INCREASE-CURRENT> (421)
<NET-CHANGE-FROM-OPS> (199)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 35
<NUMBER-OF-SHARES-REDEEMED> 31
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 4
<ACCUMULATED-NII-PRIOR> (39)
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 12
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 51
<AVERAGE-NET-ASSETS> 3146
<PER-SHARE-NAV-BEGIN> 22.34
<PER-SHARE-NII> (0.27)
<PER-SHARE-GAIN-APPREC> (1.11)
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 20.96
<EXPENSE-RATIO> 3.14
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
