SEC Registration Nos.
811-8924 and 33-87744
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-1A
REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OF 1933
Post-Effective Amendment No. 3 XX
and/or
REGISTRATION STATEMENT UNDER THE
INVESTMENT ACT OF 1940
Amendment No. 6 XX
Calvert New World 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) 951-4881
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 beneficial interest is
being registered by this Registration Statement. On May 29, 1997,
Registrant filed a Rule 24f-2 Notice for its fiscal year ended March 31,
1997.
<PAGE>
Calvert New World Fund, Inc.
Form N-1A Cross Reference Sheet
Item number Prospectus Caption
1. Cover Page
2. Fund Expenses
3. Financial Highlights*
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, Capital Gains and Taxes
7. How to Buy Shares
Net Asset Value
Reduced Sales Charges
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
Loans of Portfolio Securities
Repurchase Agreements
Investment Restrictions
14. Directors and Officers
15. *
16. Investment Advisor and Investment
Manager Transfer and Shareholder
Servicing Agent Independent
Accountants and Custodians
17. Portfolio Transactions
18. *
19. Valuation of Shares
Purchase and Redemption of Shares
Reduced Sales Charges
20. Dividends, Distributions, and Taxes
21. Method of Distribution
22. Calculation of Total Return
23. Financial Statements
* Inapplicable or negative answer
<PAGE>
PROSPECTUS JULY 31, 1997
CALVERT NEW WORLD FUND, INC.
CALVERT NEW AFRICA FUND
4550 MONTGOMERY AVENUE, BETHESDA, MARYLAND 20814
Investment Objective
The investment objective of Calvert New World Fund, Inc., Calvert New Africa
Fund (the "Fund") is to achieve capital appreciation over time. The Fund seeks
capital appreciation aggressively by focusing the Fund's investments mostly in
the emerging market of equity and equity-linked securities and fixed-income
securities of African and African-related companies.
Whether this Fund is for you
The Fund is designed for aggressive investors who are willing to accept
above-average risk in order to seek a higher rate of return on investment over
time. Investments in African and African-related issuers involve risk factors
and special considerations not normally associated with investments in United
States ("U.S.") issuers. These include risks associated with the political and
economic uncertainty caused by political transitions, the comparatively small
and potentially illiquid nature of the African securities markets and
corresponding price volatility, as well as interest rate movements, exchange
controls, and the possibility of significant currency fluctuation. In
addition, the identification of and realization of attractive investment
opportunities involves a high degree of uncertainty. Thus, share prices may
experience substantial fluctuations so that your shares may be worth less than
when you originally purchased them. There can be no assurance that the
objectives of the Fund will be achieved. (See "Investment Objective and
Policies" and "Risk Factors.") The Fund is designed for long-term investors
and does not attempt to maintain a balanced portfolio. Accordingly, the Fund
should not be used to meet short-term financial needs.
About This Prospectus
Please read this Prospectus before investing. It is designed to provide you
with information you ought to know before investing and to help you decide if
the Fund's goals match your own. Keep this document for future reference.
A Statement of Additional Information ("SAI") (dated July 31, 1997) for the
Fund has been filed with the Securities and Exchange Commission ("SEC") and is
incorporated by reference. This free Statement is available upon request from
the Fund: 800-368-2748.
The SEC maintains a Website at http://www.sec.gov containing the SAI, material
incorporated by reference, and other information regarding the Fund.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE
COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR
ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
SHARES OF THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR
ENDORSED BY, ANY BANK, AND ARE NOT FEDERALLY INSURED BY THE FDIC, THE
FEDERAL RESERVE BOARD, OR ANY OTHER AGENCY. WHEN INVESTORS SELL SHARES OF
THE FUND, THE VALUE MAY BE HIGHER OR LOWER THAN THE AMOUNT ORIGINALLY PAID.
To Open An Account
Call your broker, or complete and return the enclosed Account Application.
Minimum initial investment is $2,000 (may be lower for certain retirement
plans).
Purchase Information
The Fund offers one class of shares, Class A shares, with a sales charge
imposed at the time you purchase the shares ("front-end sales charge"). (See
"How to Buy Shares" for further details.)
Advisors
Calvert-Sloan Advisers, L.L.C. is the Fund's Advisor, responsible for overall
management and supervision of the Fund's investment and day-to-day management.
New Africa Advisers, Inc. ("NAA") and Calvert Asset Management Company, Inc.
("CAMCO") are the Fund's Subadvisors, responsible for asset allocation and
selection o6f the specific investments for the Fund. (See "Management of the
Fund.")
FUND EXPENSES
<TABLE>
<S> <C>
A. Shareholder Transaction Costs Class A
Maximum Front-End Sales Charge on Purchases 2.50%
(as a percentage of offering price)
Maximum Front-End Sales Charge on Reinvested None
Dividends (as a percentage of offering price)
Contingent Deferred Sales Charge None
Redemption Fees (as a percentage of amount redeemed)<F1> 2.00%
Exchange Fees<F2> None
<FN>
<F1> The redemption fee will be charged only for redemptions (including
exchanges) of assets held in the Fund for two years or less. See "How to
Sell Your Shares." If you request a wire redemption of less than $1,000,
you will be charged a $5 wire fee.
<F2> See footnote 1.
</FN>
B. Annual Fund Operating Expenses
(As a percentage of average net assets)
Management Fees 1.75%
Rule 12b-1 Service and Distribution Fees 0.75%
Other Expenses (After expense reimbursement) 1.04%
Total Fund Operating Expenses
(After expense reimbursement) <F3> 3.54%
<FN>
<F3> Net Fund Operating Expenses after reduction for fees paid indirectly for
Class A was 3.25%.
</FN>
</TABLE>
C. Example:
You would pay the following expenses on a $1,000 investment, assuming (1)
5% annual return and (2) redemption at the end of each time period, and (3)
assuming payment of maximum initial sales charge at time of purchase.
1 Year 3 Years 5 Years 10 Years
Class A $80 $131 $204 $396
You would pay the following expenses on the same investment, assuming no
redemption
(assumes payment of maximum initial sales charge at time of purchase):
1 Year 3 Years 5 Years 10 Years
Class A $60 $131 $204 $396
The example, which is hypothetical, should not be considered a representation
of past or future expenses. Actual expenses and return may be higher or lower
than those shown.
Explanation of Table: The purpose of the table is to assist you in
understanding the various costs and expenses that an investor in the Fund
would bear directly (shareholder transaction costs) or indirectly (annual fund
operating expenses).
A. Shareholder Transaction Costs are charges you pay when you buy or sell
shares of the Fund. See "Reduced Sales Charges" at Exhibit A to see if you
qualify for possible reductions in the sales charge. A redemption fee of 2.00%
will be charged on any redemptions (including exchanges) made with assets that
have been held in the Fund for less than two (2) years. (See "How to Sell Your
Shares.")
B. Annual Fund Operating Expenses
Management Fees are paid by the Fund to Calvert-Sloan Advisers, L.L.C.
("Investment Advisor") for managing the Fund's investments and business
affairs. Management fees include the Subadvisory fees paid by the Investment
Advisor to New Africa Advisers, Inc. and Calvert Asset Management Company,
Inc. ("Subadvisors") and the Administrative Service fee paid by the Fund to
Calvert Administrative Services Company. Beginning July 1, 1998, the Fund will
pay the Investment Advisor a performance adjustment that could cause
Management Fees to be as high as 1.85% or as low as 1.65%. The Fund incurs
Other Expenses for maintaining shareholder records, furnishing shareholder
statements and reports, and other services. Management Fees and Other Expenses
have already been reflected in the Fund's daily share price and are not
charged directly to individual shareholder accounts. Please refer to
"Management of the Fund" for further information.
The Advisor may voluntarily defer fees or assume expenses of the Fund. If the
Advisor had not done so for fiscal year 1997, Other Expenses would have been
2.37%. Total Fund Operating Expenses would have been 4.87%.
The Fund's Rule 12b-1 fees include an asset-based sales charge. Thus, it is
possible that long-term shareholders in the Fund may pay more in total sales
charges than the economic equivalent of the maximum front-end sales charge
permitted by rules of the National Association of Securities Dealers, Inc.
In addition to 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 Fund. See the SAI, "Method of
Distribution."
FINANCIAL HIGHLIGHTS
The following table provides information about the financial history of the
Fund's shares. It expresses the information in terms of a single share
outstanding for the Fund. The table has been audited by Coopers & Lybrand
L.L.P., independent accountants, whose report is included in the Annual Report
to Shareholders of the Fund. The table should be read in conjunction with the
financial statements and their related notes. The current Annual Report to
Shareholders is incorporated by reference into the SAI.
<TABLE>
<S> <C> <C>
April
12, 1995
(inception
Year Ended to March
Calvert New Africa Fund March 31, 1997 31, 1996
Net asset value, beginning of period $12.00 $12.00
Income from investment operations
Net investment income (.05) (.04)
Net realized and unrealized gain (loss) .70 .04
Total from investment operations .65 -
Total increase (decrease) in net asset value .65 -
Net asset value, ending $12.65 $12.00
Total return<F4> 5.42% 0.00%
Ratio to average net assets:
Net investment income (loss) (.45%)
(.54)%(a)
Total expenses<F5> 3.54% 3.75%(a)
Net expenses 3.25% 3.24%(a)
Expenses reimbursed 1.33% 1.24%(a)
Portfolio turnover 23% 6%
Average commission rate paid $.0263 $-
Net assets, end of period (in thousands) $9,206 $7,974
Number of shares outstanding
at end of period (in thousands) 728 664
(a) Annualized
<FN>
<F4> Total return is not annualized and does not reflect deduction of the
front-end sales charge.
<F5> This ratio reflects total expenses before reduction for fees paid
indirectly; such reductions are included in the ratio of net expenses.
</FN>
</TABLE>
INVESTMENT OBJECTIVE AND POLICIES
Investment Objective
The investment objective of the Fund is to achieve capital appreciation over
time. The Fund seeks capital appreciation aggressively by focusing its
investments mostly in the emerging market of equity and equity-linked
securities and fixed-income securities of African and African-related
companies. The Fund is nondiversified, which means that the percentage of its
assets that may be invested in a single issuer is higher relative to a
diversified fund. (See "Investment Restrictions" and "Nondiversified Status"
in the SAI.) The Fund's investment objective is not fundamental and may be
changed without shareholder approval.
Under normal circumstances, the Fund will invest at least 65% of its assets in
equity securities of African and African-related companies.
The Fund will invest primarily in equity and equity-linked securities of
African and African-related companies, defined as entities that are organized
under the laws of an African country; companies which derive at least 50% of
their revenues from goods produced or sold, investments made, or services
performed in Africa or which have at least 50% of their assets situated in
Africa; or entities which issue equity or debt securities which are traded
principally on a stock exchange in Africa. The Fund may also invest directly
in African and African-related companies, as described in "Direct Investment
Philosophy," below. Exclusive of the 65%, the Fund may invest in the equities
of multinational companies which do business in African countries.
The term "equity and equity-linked securities" includes common stock,
preferred stock, rights or warrants to purchase common or preferred stock,
debt securities convertible into common or preferred stock and structured debt
obligations (debt issued by issuers in connection with identified projects
which pay interest under what the Fund considers to be an equity participation
formula structured to reflect the status of the project). Generally, the Fund
will not trade in securities for short-term profits, but, when circumstances
warrant, securities may be sold without regard to the length of time held.
The Fund may invest up to 20% of its assets in fixed-income securities,
including junk bonds.
Fixed income securities include non-convertible debt
obligations excluding such structured debt obligations as noted above. The
Fund may invest in African sovereign debt and debt of African countries when
such investments offer opportunities for long-term capital appreciation. The
Fund focuses on its analysis of political, economic, exchange control and
other macro-economic factors, such as interest rates and inflation in the
Fund's fixed-income security selection process. (See "Risk Factors.")
The Fund may use various investment techniques, including financial futures
contracts and related options. (See "Investment Techniques and Related Risks.")
Social Philosophy - Calvert's Vision and Journey
The Calvert New Africa Fund is the first open-ended mutual fund to invest
primarily in Africa. The Fund's investment objective supports basic economic
development by investing in and assisting the growth of African companies, by
providing capital and creating jobs. As a member of the Calvert Group of
Funds, Calvert New Africa Fund's capital investments in Africa are directed to
specific economic development goals. The Fund views positively companies that
are making progress towards black economic empowerment and positive employee
relations in Africa. As investors, the Fund will also encourage companies in
which it invests to demonstrate positive leadership in areas like the
environment and treatment of employees. The Fund's investments, both through
direct investment opportunities (see below) and through the ownership of
publicly traded securities, seek to catalyze economic empowerment and improve
the quality of life for the people of Africa.
Direct Investment Philosophy
Initially, the primary focus of the Direct Investments will be in South
Africa, and on six industries: consumer products, telecommunications, health
care, light manufacturing, services, and tourism. Direct Investments may take
the form of (1) management buyouts of established businesses, (2) investments
in closely-held listed companies that are undervalued relative to their market
value, (3) investments in certain advanced-stage venture capital situations
that are poised for sustained growth, and (4) certain special investment
situations, such as investing in privatizations (a government-owned or
state-controlled entity that is sold to the private sector; e.g., in 1994, the
Government of Ghana sold 25% of Ashanti Goldfields, one of the world's largest
and richest gold mines, to the private sector). Direct Investment acquisitions
made by the Fund are expected to result in a moderate degree of leverage to
the acquired company, given that the Fund wants to control risk and generate
equity gains through growth and operational improvements rather than through
restructured financial statements. In each investment, the Fund will seek to
ally itself with strong management (as determined by New Africa Advisers
("NAA") either already in place or recruited for that particular situation. In
order to assure an identity of interest with the Fund, the management of each
portfolio company will be expected to make a meaningful investment in its
respective portfolio company, to the extent possible. By sitting on the board
of directors of each portfolio company, under the supervision of the Board of
Directors and to the extent allowed by law, and by offering general business
and management advice to the management of the portfolio company, the Fund
will aim to enhance the financial performance and value of portfolio companies
over a five to seven year holding period. NAA expects to use a number of
strategies to obtain liquidity and potentially realize capital gains for the
Fund. These include: 1) the complete or partial sale of the business to an
outside third party or joint venture partners, 2) the complete or partial sale
of the business to the public securities market, either in the form of an
initial public offering or the sale of debt, 3) the complete or partial sale
of the business to management, and 4) the refinancing of the investment's
capital structure, using the proceeds to pay a dividend to all investors. In
all cases, NAA will work with the appropriate financial advisors,
underwriters, or merchant bankers in the respective local markets to determine
the most effective way to realize capital gains. The Fund may invest up to 15%
of its net assets in Direct Investments, which are considered illiquid
securities. (See also "Risk Factors, Marketability of Fund Investments," and
"Risk Diversification and Controls for the Fund's Direct Investments.")
Sourcing Direct Investment Opportunities
NAA and its affiliates have an extensive network of contacts in the U.S.,
Europe, and Africa. The portfolio of Direct Investments will be constructed by
tapping into three areas: (1) companies entering or re-entering the African
market in need of equity partners with capital and local business experience,
(2) South African conglomerates desiring to divest, or "unbundle," specific
operations or assets in response to the changes in the political environment
in South Africa and the economic impact of greater worldwide competition in
South Africa; and (3) currently successful or emerging private African
companies needing growth capital.
The actual universe of potential Direct Investments is quite large, including
established companies, established entrepreneurs, emerging entrepreneurs, new
ventures, and companies in need of capital to make a business turnaround. NAA
anticipates the majority of the Direct Investments will be invested with
established companies, established entrepreneurs, and new ventures.
Some of the characteristics of the Direct Investment opportunity universe,
using South Africa as an example, are: (1) no source of private equity
capital, which has caused a tremendous pent-up demand for capital; (2) solid
company performance with the potential for significant growth; (3) with the
lifting of sanctions, many small and medium sized companies are poised for
international growth; and (4) rising black living standards due to job
creation programs, home building and electrification projects, and free
education and medical care.
RISK FACTORS
An investment in the Fund is subject to various risks. The net asset value
will fluctuate in response to changes in market conditions and the value of
the Fund's portfolio investments. The Fund's use of certain investment
techniques, such as foreign currency options, involve special risks. (See
"Investment Techniques and Related Risks.")
African economies
The economies of individual African countries may differ favorably or
unfavorably from the U.S. economy in such respects as growth of gross domestic
product or gross national product, rate of inflation, capital reinvestment,
resource self-sufficiency, structural unemployment, and balance of payments
position. The economies of African countries may also be affected to a greater
extent than in other countries by price fluctuations of a single commodity or
by one type of commodity, such as gold or other minerals. Severe cyclical
climatic conditions, particularly drought, may also affect the economies of
African countries. Business entities in some African countries do not have a
significant history of operating in market-oriented economies, and the
ultimate impact of some African countries' attempts to move toward more
market-oriented economies is currently unclear. Botswana, Egypt, Ghana, Ivory
Coast, Kenya, Mauritius, Morocco, Nigeria, Namibia, South Africa, Swaziland,
Tunisia, Zambia and Zimbabwe have market-oriented economies in various stages
of development, with the South African economy being substantially more
developed than the others. Therefore, the Fund may have more than 25% of its
assets invested in any one country in Africa, and, for the foreseeable future,
expects that a majority of the Fund assets will be invested in South Africa.
Thus, the Fund's performance may be significantly affected by the economic,
social, and political developments in South Africa.
As with investment in countries outside the U.S. generally, nationalization,
expropriation or confiscatory taxation, currency blockage, political changes,
government regulation, political or social instability and diplomatic
developments could adversely affect the economy of any African country or the
Fund's investments in that country. In the event of expropriation,
nationalization, or other confiscation, the Fund could lose its entire
investment in the country involved.
African Securities Markets
The securities markets of African countries are comparatively small, with the
majority of market capitalization and trading volume concentrated in a small
number of companies. In many African countries, including South Africa and
Zimbabwe, a small number of institutional investors, directly or through
related companies, hold positions in publicly-held companies in that
particular country representing a substantial portion of the total market
capitalization of listed securities. This factor, together with significant
exchange control limitations on the ability of such investors to invest
outside their home countries and the increased investment in certain African
issuers by foreign investors, will limit the securities available for purchase
by the Fund. The foregoing factors and changes therein may cause the Fund's
investment portfolio to experience greater price volatility and lower
liquidity than a portfolio invested only in securities of a U.S. company.
Trading volume in African securities is substantially less than that in the
United States. However, during periods of price volatility and lower liquidity
in the markets, securities settlements and clearance may be subject to delays
and related administrative uncertainties, such as share registration and
delivery delays. This could result in temporary periods when Fund assets are
not invested and no return is earned. Commissions for trading on African stock
exchanges are often higher than commissions on U.S. exchanges, although the
Fund will endeavor to achieve the most favorable net results on its portfolio
transactions. Most of the African stock exchanges have fixed commissions,
scaled according to volume, ranging from 0.2% to 3% or more, depending on
taxes or additional exchange fees. The higher the purchase, the lower the
percentage of the commission, generally.
African Sovereign Debt
The types of foreign government obligations in which the Fund will primarily
invest will be debt securities issued and backed by the respective government
bodies. In terms of their government backing, these securities will
structurally resemble U.S. Government and U.S. Government agency issues. In
many instances the debt issues of African sovereignties represent low quality
securities and may be comparable to securities rated below investment grade by
Standard & Poor ("S&P") or Moody's (i.e., rated C and D by S&P and Moody's,
respectively). Because of their speculative characteristics, they trade at
substantial discounts from face value, but offer substantial long-term capital
appreciation.
Noninvestment-grade (High Yield/High Risk) Debt Securities
The Fund may invest up to 20% of its assets in lower quality debt securities
(generally those rated BB or lower by S&P or Ba or lower by Moody's, including
those rated C and D). These securities have moderate to poor protection of
principal and interest payments and have speculative characteristics.
Securities rated D are in default of payment of interest and/or principal.
These securities involve greater risk of default or price declines than
investment-grade debt securities due to changes in the issuer's
creditworthiness. 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 is determined immediately after the Fund's acquisition
of a security. 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, NAA 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.
Likewise, when purchasing convertible debt securities and structured debt
obligations, NAA will prepare a quality and credit analysis, including a study
of any existing debt, capital structure and current financial condition,
ability to service debts and to pay dividends, sensitivity to changes in
economic conditions, and the current trend of earnings, revenues, expenses,
cash flow, and other factors, under the supervision of the Advisor and the
Board of Directors.
Currency Risks
Foreign securities involve currency risks. The U.S. dollar value of a foreign
security tends to decrease when the value of the dollar rises against the
foreign currency in which the security is denominated and tends to increase
when the value of the dollar falls against such currency. Fluctuations in
exchange rates may also affect the earning power and asset value of the
foreign entity issuing the security. Dividend and interest payments may be
returned to the country of origin, based on the exchange rate at the time of
disbursement, and restrictions on capital flows may be imposed. Losses and
other expenses may be incurred in converting between various currencies in
connections with purchases and sales of foreign securities.
General Foreign Security Risks
There are substantial and different risks involved in investing in foreign
securities. You should consider these risks carefully. For example, there is
generally less publicly available information about foreign companies than is
available about companies in the U.S. Foreign companies are not subject to
uniform audit and financial reporting standards, practices and requirements
comparable to those in the U.S.
Foreign stock markets are generally not as developed or efficient as those in
the U.S. In most foreign markets volume and liquidity are less than in the
U.S. and, at times, volatility of price can be greater than that in the U.S.
Fixed commissions on foreign stock exchanges are generally higher than the
negotiated commissions on U.S. exchanges. There is generally less government
supervision and regulation of foreign stock exchanges, brokers and companies
than in the U.S.
There is also the possibility of adverse changes in investment or exchange
control regulations, expropriation or confiscatory taxation, limitations on
the removal of Funds or other assets, political or social instability, or
diplomatic developments which could adversely affect investments, assets or
securities transactions of the Fund in some foreign countries. The Fund is not
aware of any investment or exchange control regulations which might
substantially impair the operations of the Fund as described, although this
could change at any time.
For many foreign securities, there are U.S. dollar-denominated American
Depositary Receipts ("ADRs"), which are traded in the U.S. on exchanges or
over the counter. ADRs are receipts typically issued by a U.S. bank or trust
company which evidence ownership of underlying securities of a foreign
corporation. 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. By investing in
ADRs rather than directly in foreign issuers' stock, the Fund may avoid
currency and some liquidity risks, since the information available for ADRs is
subject to the more uniform and more exacting accounting, auditing and
financial reporting standards of the domestic market or exchange on which they
are traded. In general, there is a large, liquid market in the U.S. for many
ADRs. The Fund may also invest in European Depositary Receipts ("EDRs"), which
are receipts evidencing an arrangement with a European bank similar to that
for ADRs and are designed for use in the European securities markets. EDRs are
not necessarily denominated in the currency of the underlying security.
The dividends and interest payable on certain of the Fund's foreign securities
may be subject to foreign withholding taxes, thus reducing the net amount
available for distribution to the Fund's shareholders. You should understand
that the expense ratio of the Fund can be expected to be higher than those of
investment companies investing only in domestic securities since the costs of
operations are higher.
Risks of Nondiversification
There may be risks associated with the Fund being nondiversified.
Specifically, since a relatively high percentage of the assets of the Fund may
be invested in the obligations of a limited number of issuers, the value of
the shares of the Fund may be more susceptible to any single economic,
political or regulatory event than the shares of a diversified Fund.
Marketability of Fund Investments
The marketability and liquidity of the Fund's investments cannot be assured.
The Fund's ability to acquire and dispose of investments in private debt and
equity securities will be dependent on factors outside its control, including
the health of the market for private debt and equity securities and the
financial condition of a security's issuer, as well as general economic
conditions. The Fund may invest up to 15% of its net assets in illiquid
securities. Generally, the Fund will need to obtain permission from regulatory
authorities in South Africa and other African countries to invest in unlisted
securities.
Temporary defensive positions
For temporary defensive purposes - which may include a lack of adequate
purchase candidates or an unfavorable market environment - the Fund may invest
up to 100% of its assets in cash or cash equivalents. Cash equivalents include
instruments such as, but not limited to, U.S. government and agency
obligations, certificates of deposit, bankers' acceptances, time deposits,
commercial paper, short-term corporate debt securities and repurchase
agreements.
RISK DIVERSIFICATION AND CONTROLS FOR THE FUND'S DIRECT INVESTMENTS
The Fund can invest up to 15% of its net assets in Direct Investments, which
will consist primarily of investments in companies that by U.S. standards are
small to medium sized. While Direct Investments in such companies offer the
opportunity for significant capital gains, such investments involve a degree
of business and financial risks that can result in losses, and the liquidity
cannot be assured. Among these are the risks associated with investing in
companies with new management, companies operating with substantial variations
in operating results from period to period, and companies with the need for
substantial additional capital to support expansion or to achieve or maintain
a competitive position. Such businesses may face intense competition from
rivals with greater financial resources, more extensive research and
development, manufacturing, marketing, and services capabilities, and a larger
number of qualified managerial and technical personnel.
The Fund's Direct Investment philosophy is to help ensure that you have a
reasonable level of risk related to your Fund investment. The risks involved
in investment in private debt and equity situations are managed in several
ways. For example, the Subadvisor consistently receives up-to-date information
about the South African market and economy; evaluates potential opportunities
using a multi-step procedure which includes a tour of facilities and
discussions with management; explores innovative financing techniques;
capitalizes portfolio companies with 30%-50% equity to mitigate financial
risk; and may directly monitor a company by sitting on its board of directors.
The Fund will not invest in a situation which does not present reasonable exit
opportunities. A number of exit strategies to obtain liquidity and realize
capital gains will be used, including: (1) the complete or partial sale of the
business to an outside third party or joint venture partners, (2) the complete
or partial sale of the business to the public securities market, either in the
form of an initial public offering or the sale of debt, (3) the complete or
partial sale of the business to management, and (4) the refinancing of the
investment's capital structure and using the proceeds to pay a dividend to
investors. The holding period for a Direct Investment is anticipated to range
from five to seven years.
INVESTMENT TECHNIQUES AND RELATED RISKS
Financial Futures, Options, and Other Investment Techniques
The Fund can use various techniques 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 either as substitution for an allowable security or as
protection against an adverse move in the Fund's portfolio to adjust the risk
and return characteristics of the Fund's portfolio.
The Fund may engage in transactions in financial futures contracts and related
options as explained below. It may also write covered call options and secured
put options, purchase call and put options on securities and security indices,
and may enter into option transactions on foreign currency. The Fund may also
invest in repurchase agreements. If the Advisor judges market conditions
incorrectly or employs a strategy that 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 a fund and may involve a small investment of cash
relative to the magnitude of the risk assumed.
The Fund reserves the right to invest in the above investment techniques, but,
with the exception of financial futures contracts and related options,
currently anticipates such investment in each technique to be less than 5% of
the Fund's net assets in the coming year. Therefore, those investment
techniques and the related risks are described in detail in the SAI.
Financial Futures and Related Options
The Fund may enter into financial futures contracts and related options as a
hedge against anticipated changes in the market value of their portfolio
securities or securities which they intend to purchase or in the exchange rate
of foreign currencies. Hedging is the initiation of an offsetting position in
the futures market which is intended to minimize the risk associated with a
position's underlying securities in the cash market. Investment techniques
related to financial futures and options are summarized below and are
described more fully in the SAI.
Financial futures contracts consist of interest rate futures contracts,
foreign currency futures contracts and securities index futures contracts. An
interest rate futures contract obligates the seller of the contract to
deliver, and the purchaser to take delivery of, the interest rate securities
called for in the contract at a specified future time and at a specified
price. A foreign currency futures contract obligates the seller of the
contract to deliver, and the purchaser to take delivery of, the foreign
currency called for in the contract at a specified future time and at a
specified price. (See "Foreign Currency Transactions" in the SAI.) A
securities index assigns relative values to the securities included in the
index, and the index fluctuates with changes in the market values of the
securities so included. A securities index futures contract is a bilateral
agreement pursuant to which two parties agree to take or make delivery of an
amount of cash equal to a specified dollar amount times the difference between
the index value at the close of the last trading day of the contract and the
price at which the futures contract is originally struck. An option on a
financial futures contract gives the purchaser the right to assume a position
in the contract (a long position if the option is a call and a short position
if the option is a put) at a specified exercise price at any time during the
period of the option.
The Fund may purchase and sell financial futures contracts which are traded on
a recognized exchange or board of trade and may purchase exchange or
board-traded put and call options on financial futures contracts. It will
engage in transactions in financial futures contracts and related options only
for hedging purposes and not for speculation. In addition, the Fund will not
purchase or sell any financial futures contract or related option if,
immediately thereafter, the sum of the cash or U.S. Treasury bills committed
with respect to its existing futures and related options positions and the
premiums paid for related options would exceed 5% of the market value of its
total assets. At the time of purchase of a futures contract or a call option
on a futures contract, an amount of cash, U.S. Government securities or other
appropriate high-grade debt obligations equal to the market value of the
futures contract minus the Fund's initial margin deposit with respect thereto,
will be deposited in a segregated account with the Fund's custodian bank to
collateralize fully the position and thereby ensure that it is not leveraged.
The extent to which the Fund may enter into financial futures contracts and
related options may also be limited by requirements of the Internal Revenue
Code of 1986 for qualification as a regulated investment company.
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 NAA 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.
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. Any such loans must be secured
continuously in the form of cash or cash equivalents such as U.S. Treasury
bills; the amount of the collateral must on a current basis equal or exceed
the market value of the loaned securities, and the Fund must be able to
terminate such loans upon notice at any time. The Fund will exercise its right
to terminate a securities loan in order to preserve its right to vote upon
matters of importance affecting holders of the securities. The advantage of
such loans is that the Fund continues to receive the equivalent of the
interest earned or dividends paid by the issuers on the loaned securities
while at the same time earning interest on the cash or equivalent collateral
which may be invested in accordance with the Fund's investment objective,
policies and restrictions.
Securities loans are usually made to broker-dealers and other financial
institutions to facilitate their delivery of such securities. As with any
extension of credit, there may be risks of delay in recovery and possibly loss
of rights in the loaned securities should the borrower of the loaned
securities fail financially. However, the Fund will make loans of its
portfolio securities only to those firms the Advisor or Subadvisor deems
creditworthy and only on such terms the Advisor or Subadvisor believes should
compensate for such risk. On termination of the loan the borrower is obligated
to return the securities to the Fund. The Fund will realize any gain or loss
in the market value of the securities during the loan period. The Fund may pay
reasonable custodial fees in connection with the loan.
The Fund's policies set forth as fundamental investment restrictions may not
be changed without shareholder approval. The Fund's SAI describes these and
additional policies and restrictions concerning the portfolio investments of
the Fund.
TOTAL RETURN
The Fund may advertise total return. Total return is based on historical
results and is not intended to indicate future performance.
Total return 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 shows overall change in value, including changes in share price
and assuming all of the dividends and capital gain distributions are
reinvested. A cumulative total return reflects the performance over a stated
period of time. An average annual total return reflects the hypothetical
annual compounded return that would have produced the same cumulative total
return if the performance had been constant over the entire period. Because
average annual returns tend to smooth out variations in the returns, you
should recognize that they are not the same as actual year-by-year results.
Both types of returns usually will include the effect of paying the front-end
sales charge. 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 charge, such as mutual fund
averages compiled by Lipper Analytical Services, Inc. Further information
about the Fund's performance is contained in its Annual Report to
Shareholders, which may be obtained without charge.
MANAGEMENT OF THE FUND
The Fund's Board of Directors supervises the Fund's activities and reviews its
contracts with companies that provide it with services.
The Fund is a series of Calvert New World Fund, Inc., an open-end management
investment company organized as a Maryland corporation on December 22, 1994.
The Fund is neither required nor intends to hold annual shareholder meetings,
but special meetings may be called for purposes such as electing or removing
Directors, changing fundamental policies, or approving a management contract.
As a shareholder, you receive one vote for each share of the Fund you own.
Board of Directors
Elias Belayneh
President of US-Africa Chamber of Commerce
Robert Browne
President of Twenty-First Century Foundation
Reno Martini
Director and Senior Vice President of Calvert Group, Ltd.
Senior Vice President and Chief Investment Officer of Calvert Asset Management
Company, Inc.
Madala Mthembu
Senior Advisor of Premier of the Northern Cape Province of South Africa
Donald Norland
Senior Policy Advisor of WorldSpace, Inc.
Maceo K. Sloan
Chairman, President and CEO of Sloan Financial Group and NCM Capital
Management Group, Inc.
Tim Smith
Executive Director of Interfaith Center on Corporate Responsibility
Chairman of the Advisory Council of the Calvert Social Investment Fund
Barbara J. Krumsiek
President, Chief Executive Officer of Calvert Group, Ltd. and its subsidiaries
Pamela Van Arsdale
Community activist
Bertie R. Howard
Executive Director of Africa News Service
Michael E.M. Sudarkasa
President of International Trade Counsel
Calvert-Sloan Advisers, L.L.C. serves as Advisor to the Fund.
Calvert-Sloan Advisers, L.L.C. (the "Advisor") is the Fund's investment
advisor. It is located at 4550 Montgomery Avenue, Suite 1000N, Bethesda,
Maryland 20814. It is jointly owned by Calvert Group, Ltd., and Sloan
Holdings, Inc., and was organized in the State of Maryland on March 3, 1995.
The individuals involved in the Advisor's management are experienced employees
of Calvert Group, Ltd. and its subsidiary, Calvert Asset Management Company,
Inc. (a Subadvisor to the Fund), and New Africa Advisers, Inc. (also a
Subadvisor to the Fund), a subsidiary of Sloan Financial Group (see below).
The Advisor provides the Fund with investment supervision and management,
administrative services and office space; furnishes executive and other
personnel to the Fund; and pays the salaries and fees of all Directors who are
affiliated persons of the Advisor. The Advisor may also assume and pay certain
advertising and promotional expenses of the Fund and reserves the right to
compensate broker-dealers in return for their promotional or administrative
services. The Fund pays all other operating expenses as noted in the SAI.
The Fund's organizational expenses were advanced to the Fund by Calvert-Sloan
Advisers, L.L.C. These expenses will be amortized over a sixty-month period
which will commence with the inception of the Fund. In the event that the Fund
liquidates before the deferred organization expenses are fully amortized,
Calvert-Sloan Advisers, L.L.C. shall bear such unamortized deferred
organization expenses.
The Public School Retirement System of the City of St. Louis, located at #1
Mercantile Center, St. Louis, Missouri 63101, currently, as of June 30, 1997,
controls 50.43% of the Fund.
The Florida A & M University Foundation of the City of Tallahassee, located at
Lee Hall Room 200-6, Tallahassee, Florida 32307, currently, as of June 20,
1997, controls 9.42% of the Fund.
New Africa Advisers, Inc., is one of the Fund's Subadvisors.
New Africa Advisers, Inc., is one of the Subadvisors to the Fund. NAA's
principal business office in the U.S. is 103 West Main Street, Fourth Floor,
Durham, North Carolina 27701. It also has offices in New York City and
Johannesburg, South Africa. NAA is a registered investment advisor and is
wholly owned by Sloan Financial Group, Inc. ("SFG"). NAA was founded in 1992
to provide investors with access to African-related investment opportunities.
Combining African emerging markets and global portfolio management expertise,
New Africa Advisers is uniquely qualified in this era of post-apartheid
African investments. Along with investment research and statistical
information, NAA provides investment advisory assistance and the day-to-day
management of the Fund's investments and re-investments.
The Sloan Financial Group, NAA's parent company, headquartered in Durham,
North Carolina, is the nation's largest minority-owned financial services
firm. Founded in 1986 by Maceo K. Sloan, (Chairman, President, and Chief
Executive Officer), the company's roots date back to 1898 when Sloan's
ancestors founded North Carolina Mutual Life Insurance Company, the nation's
largest minority-owned insurance firm. Presently, Sloan Financial Group
contains two investment management subsidiaries, NCM Capital Management Group,
Inc., and New Africa Advisers. Within its family of companies, SFG currently
manages assets of approximately $3.9 billion, and the firm's client base
includes many of the nation's largest employee benefit, foundation, and
endowment plans.
CAMCO is one of the Fund's Subadvisors.
CAMCO is one of the Subadvisors to the Fund. CAMCO's principal business office
is 4550 Montgomery Avenue, Suite 1000N, Bethesda, Maryland 20814. CAMCO
manages the U.S. dollar portion of the Fund's cash reserves. CAMCO is a
subsidiary of Calvert Group, Ltd., and currently serves as investment advisor
to First Variable Rate Fund for Government Income, Calvert Tax-Free Reserves,
Calvert Social Investment Fund, Calvert Cash Reserves, The Calvert Fund,
Calvert Municipal Fund, Inc., Calvert World Values Fund, Inc., and Acacia
Capital Corporation.
Portfolio Managers - Investment selections for the Fund are made by a team.
Investment selections for the Fund are made by a team, led by Maceo K. Sloan,
Chairman of New Africa Advisers, Inc. Mr. Sloan's 25-year career in the
investment management industry began at North Carolina Mutual Life Insurance
Company where he held positions including Investment Analyst, Treasurer, Vice
President, and Chief Investment Officer. Presently, he serves as Chairman,
President, and Chief Executive Officer of Sloan Financial Group and NCM
Capital Management Group, Inc. Mr. Sloan is a Director of the National
Association of
Securities Professionals, a Chartered Financial Analyst and a Fellow of the
Life Management Institute. He is a regular panelist on the PBS program Wall
Street Week in Review and has been a panelist and chaired several conferences
concerning investment opportunities in South Africa, such as the RCB
International Seminar and the Pensions 2000 on South Africa.
Justin F. Beckett is President and CEO of New Africa Advisers, Inc. He has
over ten years' experience in the investment field. Mr. Beckett began
researching Africa's capital markets in 1990 and the experiences and
information that Mr. Beckett has amassed since then represent the foundation
of NAA's investment philosophy. Mr. Beckett was one of the first U.S.
professionals to establish a dialogue with South Africa's post-apartheid
investment community, and now resides in Johannesburg. As a recognized expert
on investments in South Africa, Mr. Beckett has been quoted in numerous
periodicals (Pensions & Investments, The Wall Street Journal, The New York
Times, The Washington Post), and has chaired and spoken on several conference
panels relative to investments in South Africa. Mr. Beckett has also appeared
on The Color of Money, Reflections, PBS Morning News, and Prime Time Sunday.
Clifford D. Mpare, Chief Investment Officer of NAA, is a native of Ghana, in
West Africa. He has over ten years of investment experience, hands-on
knowledge of African capital markets, and experience in the U.S. and Canadian
markets. Prior to joining NAA's parent company, SFG, Mr. Mpare, who is a
Chartered Financial Analyst and a Certified Management Accountant, was a
Senior Analyst with First Union Corp's private equity department, where he
specialized in the valuation of unlisted securities. He serves on the review
board of the Association of Investment Management and Research, and is a
member of the North Carolina Society of Financial Analysts, the Institute of
Chartered Financial Analysts, the Institute of Management Accountants, and the
Society of Management Accountants of Canada.
CAMCO manages the U.S. dollar portion of the Fund's cash reserves.
The U.S. dollar portion of the Fund's cash reserves is invested by Calvert
Asset Management Company, Inc., headed by Reno Martini, Senior Vice President
and Chief Investment Officer. Mr. Martini, a Director of Calvert Group, Ltd.,
and Senior Vice President and Chief Investment Officer of CAMCO, oversees
management of all Calvert Group portfolios. He has extensive experience in
evaluating and purchasing municipal securities.
Calvert Group is one of the largest investment management firms in the
Washington, D.C. area.
Calvert Group, Ltd., parent of the Fund's transfer agent, distributor, and
CAMCO, 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 and the
performance of the Fund. From this, it pays the Subadvisors a fee.
The Investment Advisory Agreement between the Fund and the Advisor provides
that the Advisor is entitled to a base annual fee, payable monthly, of 1.50%
of the Portfolio's average daily net assets. From this, the Advisor pays a
base annual fee of 0.755% to NAA, 0.495% to CAMCO, and a fee of 0.10% to Sloan
Holdings, Inc., for consulting services. Commencing on July 1, 1998, the
Adviser will receive a "Performance Fee," applied prospectively, based on the
investment performance of the Fund over a "Performance Period" in relation to
the investment record of the Morgan Stanley South Africa Index. The
Performance Fee will be adjusted up or downward to the extent to which
performance of the Fund exceeds or trails the Morgan Stanley South Africa
Index:
Performance versus the Performance Fee
Morgan Stanley Adjustment
South Africa Index
30% to less than 60% 0.05%
60% to less than 90% 0.07%
90% or more 0.10%
The Advisor will pay NAA a performance fee equal to the Performance Fee the
Advisor receives from the Fund.
The Advisor may in its discretion defer its fees or assume the Fund's
operating expenses. The Investment Advisory Agreement provides that the
Advisor may later, to the extent permitted by law, recapture any fees it
deferred, or expenses it assumed during the two prior years.
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 the Fund of
0.25% of the Fund's average daily net assets.
Calvert Distributors, Inc. serves as underwriter to market the Fund's shares.
Calvert Distributors, Inc. ("CDI") is the Fund's principal underwriter and
distributor. Under the terms of its underwriting agreement with the Fund, CDI
markets and distributes the Fund's shares and is responsible for payment of
commissions and service fees to broker-dealers, banks, and financial services
firms, preparation of advertising and sales literature, and printing and
mailing of prospectuses to prospective investors.
The transfer agent keeps your account records.
Calvert Shareholder Services, Inc. is the Fund's transfer, dividend disbursing
and shareholder servicing agent.
SHAREHOLDER GUIDE
Opening An Account
You can buy shares of the Fund in several ways.
An account application should accompany this prospectus. A completed and
signed application is required for each new account you open, regardless of
the method you choose for making your initial investment. Additional forms may
be required from corporations, associations, and certain fiduciaries. If you
have any questions or need extra applications, call your broker, or Calvert
Group at 800-368-2748.
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.
Class A Shares - Front-End Load
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.
The Fund bears some of the costs of selling its shares under Distribution
Plans adopted with respect to its shares pursuant to Rule 12b-1 under the 1940
Act. Payments under the Class A Distribution Plan are limited to 0.75%
annually of the average daily net asset value of Class A shares.
CLASS A SHARES
Class A shares are offered at net asset value plus a front-end sales charge as
follows:
Concession
Amount of As a % of As a % of to
Dealers as a
Investment Offering Net Amount % of
Amount
Price Invested Invested
Less than $50,000 2.50% 2.56% 2.00%
$50,000 but less than $100,000 2.00% 2.04% 1.50%
$100,000 but less than $250,000 1.50% 1.52% 1.10%
$250,000 but less than $500,000 1.25% 1.27% 0.95%
$500,000 but less than $1,000,000 1.00% 1.01% 0.85%
$1,000,000 and over 0.00% 0.00% 0.75%*
*For new investments (new purchases but not exchanges) of $1 million or more,
CDI may pay a broker-dealer, on a monthly basis for 12 months, an annual rate
of 0.75%. Payments will be made monthly at the rate of 0.0625% of the amount
of the investment, less redemptions.
Sales charges on Class A shares may be reduced or eliminated in certain cases.
See Exhibit A to this prospectus.
The sales charge is paid to CDI, which in
turn normally reallows a portion to your broker-dealer. Upon written notice to
dealers with whom it has dealer agreements, CDI may reallow up to the full
applicable sales charge. Dealers to whom 90% or more of the entire sales
charge is reallowed may be deemed to be underwriters under the Securities Act
of 1933.
In addition to any sales charge reallowance or finder's fee, your
broker-dealer, or other financial service firm through which your account is
held, currently will be paid periodic service fees at an annual rate of up to
0.25% of the average daily net asset value of Class A shares held in accounts
maintained by that firm.
Class A Distribution Plan
The Fund has adopted a Distribution Plan with respect to its Class A shares
(the "Class A Distribution Plan"), which provides for payments at a maximum
annual rate of 0.75% of the average daily net asset value of Class A shares,
to pay expenses associated with the distribution and servicing of Class A
shares. Fees paid by the Fund to CDI under the Class A Distribution Plan are
used to pay to dealers and others, including CDI salespersons who service
accounts, quarterly compensation at an annual rate of up to 0.50%, plus
service fees at an annual rate of up to 0.25% of the average daily net asset
value of Class A shares, beginning the thirteenth month after the shares are
purchased. The distribution fees also are used 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. Payments pursuant to a Distribution Plan are
included in the operating expenses of the class.
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. All such payments will be in compliance with NASD rules.
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.
NET ASSET VALUE
Net asset value, or "NAV," refers to the worth of one share. NAV is computed
by adding the value of all portfolio holdings, plus other assets, deducting
liabilities and then dividing the result by the number of shares outstanding.
This value is calculated at the close of the Fund's business day, which
coincides with the closing of the regular session of the New York Stock
Exchange (normally 4:00 p.m. Eastern time). The Fund is open for business each
day the New York Stock Exchange is open. All purchases of Fund shares will be
confirmed and credited to your account in full and fractional shares (rounded
to the nearest 1/1000th of a share).
Fund securities and other assets are valued based on market quotations, except
that securities maturing within 60 days are valued at amortized cost. If
quotations are not available, securities are valued by a method that the Board
of Directors believes accurately reflects fair value. Securities which are
primarily traded on foreign securities exchanges are generally valued at the
preceding closing values of such securities on their respective exchanges (See
the SAI - "Determination of Net Asset Value") relating to the valuation of
foreign securities. Financial futures are valued at the settlement price
established each day by the board of trade or exchange on which they are
traded. All assets and liabilities initially expressed in foreign currency
values will be converted into United States dollars as last quoted by any
recognized dealer.
WHEN YOUR ACCOUNT WILL BE CREDITED
Before you buy shares, please read the following information to make sure your
investment is accepted and credited properly.
All of your purchases must be made in U.S. dollars and checks must be drawn on
U.S. banks. No cash will be accepted. The Fund reserves the right to suspend
the offering of shares for a period of time or to reject any specific purchase
order. If your check 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, that investment will be on hold for up
to 10 business days from the date of receipt. During that period, the proceeds
of redemptions against that investment will be held until the transfer agent
is reasonably satisfied that the purchase payment has been collected. To avoid
this collection period, you can wire federal funds from your bank, which may
charge you a fee. Check purchases received at the branch location will be
credited the next business day. Any check purchase received without an
investment slip may cause delayed crediting.
Certain financial institutions or broker-dealers which have entered into a
sales agreement with the Distributor may enter confirmed purchase orders on
behalf of customers by phone, with payment to follow within a number of days
of the order as specified by the program. If payment is not received in the
time specified, the financial institution could be held liable for resulting
fees or losses.
OTHER CALVERT GROUP SERVICES
Calvert Information Network
24 hour yield and prices
Calvert Group has a round-the-clock telephone service that lets existing
customers obtain prices, performance information, account balances, and
authorize certain transactions.
Calvert Money Controller
Calvert Money Controller eliminates the delay of mailing a check or the
expense of wiring funds.
You can request this free service on your application. This service allows
you to authorize electronic transfers of money to purchase or sell shares. You
use Calvert Money Controller like an "electronic check" to move money ($50 to
$300,000) between your bank account and your account in the Fund with one phone
call. Allow two business days after the call for the transfer to take place from
your bank to Calvert; for redemptions, allow five to seven days after the call
for the redemption proceeds to be sent to your bank. All Calvert Money
Controller transaction requests must be received by 4:00 p.m. Eastern time.
You may also arrange systematic monthly or quarterly investments (minimum $50)
into your Calvert Group account. After you give us proper authorization, your
bank account will be debited to purchase Fund shares. You will receive a
confirmation from us for these transactions, and a debit entry will appear on
your bank statement. Share purchases made through Calvert Money Controller
will be subject to the applicable sales charge. If you would like to make
arrangements for systematic monthly or quarterly redemptions from your Calvert
account, call Calvert for more information.
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. The Fund,
the transfer agent and their affiliates are not liable for acting in good
faith on telephone instructions relating to your account, so long as they
follow reasonable procedures to determine that the telephone instructions are
genuine, and that if they do not, they may be liable for any losses due to
unauthorized or fraudulent telephone transactions. 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 "Option" sections of the application for the easiest way to
establish services.
The easiest way to establish optional services on your Calvert Group account
is to select the options you desire when you complete your account
application. If you wish to add other options later, you may have to provide
us with additional information and a signature guarantee. Please call your
broker or Calvert Investor Relations at 800-368-2745 for further assistance.
For our mutual protection, we may require a signature guarantee on certain
written transaction requests. A signature guarantee verifies the authenticity
of your signature, and may be obtained from any bank, savings and loan
association, credit union, trust company, broker-dealer firm or member of a
domestic stock exchange. A signature guarantee cannot be provided by a notary
public.
Householding of General Mailings
Householding reduces Fund expenses and saves postage expense.
If you have multiple accounts with Calvert, you may receive combined mailings
of some shareholder information, such as statements, confirms, prospectuses,
semi-annual and annual reports. Please contact Calvert Investor Relations at
800-368-2745 to receive additional copies of information.
Special Services and Charges
The Fund pays for shareholder services but not for special services that are
required by a few shareholders, such as a request for a historical transcript
of an account. You may be required to pay a research fee for these special
services.
If you are purchasing shares of the Fund through a program of services offered
by a broker-dealer or financial institution, you should read the program
materials in conjunction with this Prospectus. Certain features of the Fund
may be modified in these programs, and administrative charges may be imposed
for the services rendered.
Tax-Saving Retirement Plans
Contact Calvert Group for complete information kits discussing the plans, and
their benefits, provisions and fees.
Calvert Group can set up your new account in the Fund under one of several
tax-deferred plans. These plans let you invest for retirement and shelter your
investment income from current taxes. Minimums may differ from those listed in
the "How to Buy Shares" chart. 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.
HOW TO SELL YOUR SHARES
You may redeem all or a portion of your shares on any business day. Because
the securities held by the Fund may be far less liquid than securities that
are issued in mature markets, and to allow for the orderly redemption of
shares, your shares will be redeemed at the net asset value next calculated
after your redemption request is received and accepted, but the redemption
proceeds may be mailed, wired, or sent by electronic transfer up to five
business days later. At the Fund's sole discretion, you may receive securities
in lieu of cash. See "Purchase and Redemption of Shares" in the SAI. If you
redeem shares of the Fund (including exchanges) after holding them less than
two years, the Fund will deduct a redemption fee equal to 2.0% of the net
asset value of the shares redeemed. The fee will be retained by the Fund and
used to offset transaction costs that short-term trading imposes on the Fund
and its shareholders. If shares you are redeeming were not all held for the
same length of time, those shares you held longest will be redeemed first for
purposes of determining whether this fee applies. Below are specific
requirements necessary to make sure your redemption request is accepted.
Remember that the Fund may hold payment on the redemption of your shares until
it is reasonably satisfied that investments made by check or by Calvert Money
Controller have been collected (normally up to 10 business days).
Redemption Requirements To Remember
To ensure acceptance of your redemption request, please follow the procedures
described here and below.
Once your shares are redeemed, the proceeds will normally be sent to you by
mail, electronic transfer, or wire between the fifth and seventh day. Calvert
Money Controller redemptions generally will be credited to your bank account
between the fifth and seventh 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.
Please maintain a balance in your account of at least $1,000 per Fund. If, due
to redemptions, it falls below $1,000, your account may be closed and the
proceeds mailed to you at the address of record. You will be given notice that
your account will be closed after 30 days unless you make an additional
investment to increase your account balance to the $1,000 minimum.
By Mail To: Calvert Group, P.O. Box 419544, Kansas City, MO 64141-6544.
You may redeem available funds from your account at any time by sending a
letter of instruction, including your name, account and Fund number, the
number of shares or dollar amount, and where you want the money to be sent.
Additional requirements, below, may apply to your account. The letter of
instruction must be signed by all required authorized signers. If you want the
money to be wired to a bank not previously authorized, then a voided bank
check must be enclosed with your letter. If you do not have a voided check or
if you would like funds sent to a different address or another person, your
letter must be signature guaranteed.
Type of Registration Requirements
Corporations, 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 an address or
bank you have previously authorized. A charge of $5 is imposed on wire
transfers of less than $1,000. See "Telephone Transactions." If for any reason
you are unable to reach the Fund by telephone, whether due to mechanical
difficulties, heavy market volume, or otherwise, you may send a written
redemption request to the Fund by overnight mail, or, if your account is held
through a broker, see "Through Your Broker" below.
Calvert Money Controller
Please allow sufficient time for Calvert Group to process your initial request
for this service (normally 10 business days). Your request for a redemption by
this service must be received by 4:00 p.m. Eastern time. Accounts cannot be
closed by this service.
Systematic Check Redemptions
If you maintain an account with a balance of $10,000 or more, you may have up
to two (2) redemption checks for $100 or more sent to you on the 15th of each
month, simply by sending a letter with all the information, including your
account number, and the dollar amount ($100 minimum). If you would like a
regular check mailed to another person or place, your letter must be signature
guaranteed.
Through your Broker
If your account is held in your broker's name ("street name"), you should
contact your broker directly to transfer, exchange or redeem shares.
DIVIDENDS AND TAXES
Each year, the Fund distributes substantially all of its net investment income
and capital gains to shareholders.
Dividends from the Fund's net investment income are declared and paid
annually. Net investment income consists of the interest income, net
short-term capital gains, if any, and dividends declared and paid on
investments, less expenses. Distributions of net long-term capital gains, if
any, are normally declared and paid by the Fund once a year; however, the Fund
does not anticipate making any such distributions unless available capital
loss carryovers have been used or have expired.
Dividend Payment Options
Dividends and distributions are automatically reinvested in additional shares,
unless on the account application you request to have them paid to you in cash
(by check or by Calvert Money Controller). You may also request to have your
dividends and distributions from the Fund invested at net asset value ("NAV")
in shares of any other Calvert Group Fund. If you choose to have them
reinvested in the same Fund, the new shares will be purchased at the NAV (no
sales charge) on the reinvest date, which is generally 1 to 3 days prior to
the payment date. You must be a shareholder on the record date to receive
dividends. You must notify the Fund in writing prior to the record date if you
want to change your payment options. If you elect to have dividends and/or
distributions paid in cash, and the U.S. Postal Service cannot deliver the
check, or if it remains uncashed for six months, it, as well as future
dividends and distributions, will be reinvested in additional shares.
"Buying a Dividend"
At the time of purchase, the share price of the Fund may reflect undistributed
income, capital gains or unrealized appreciation of securities. Any income or
capital gains from these amounts which are later distributed to you are fully
taxable as dividends or capital gains distributions. On the record date for a
distribution, the Fund's per share value is reduced by the amount of the
distribution. If you buy shares just before the record date ("buying a
dividend") you will pay the full price for the shares and then receive a
portion of the price back as a taxable distribution.
Federal Taxes
The Fund normally distributes all net income and capital gain to shareholders.
These distributions are taxable to you regardless of whether they are taken in
cash or reinvested. Distributions of dividends and net realized short-term
capital gains are taxable as ordinary income; capital gains distributions are
taxable as long-term capital gains regardless of how long you have held the
shares. Dividends and distributions declared in December and paid in January
are taxable in the year they are declared. The Fund will mail you Form
1099-DIV in January indicating the federal tax status of your dividends.
Distributions resulting from the sale of certain foreign currencies and debt
securities are taxed as ordinary income gain or loss. If these transactions
result in reducing the Fund's net income, a portion of the dividends may be
classified as a return of capital (which lowers your tax base). If the Fund
pays taxes to foreign governments during the year, the taxes will reduce the
Fund's dividends but will still be included in your taxable income. However,
you may be able to claim an offsetting credit or deduction on your tax return
for your portion of foreign taxes paid by the Fund.
You may realize a capital gain or loss when you sell or exchange shares.
If you sell or exchange your Fund shares you will have a short or long-term
capital gain or loss, depending on how long you owned the shares which were
sold. In January, the Fund will mail you Form 1099-B indicating the proceeds
from all sales, including exchanges. You should keep your annual year-end
account statements to determine the cost (basis) of the shares to report on
your tax returns.
Taxpayer Identification Number, Back-up Withholding
If we do not have your correct Social Security or Taxpayer Identification
Number ("TIN") and a signed certified application or Form W-9, federal law
requires the Fund to withhold 31% of your dividends, capital gain
distributions, and redemptions. In addition, you may be subject to a fine. You
will also be prohibited from opening another account by exchange. If this TIN
information is not received within 60 days after your account is established,
your account may be redeemed at the current NAV on the date of redemption. The
Fund reserves the right to reject any new account or any purchase order for
failure to supply a certified TIN.
EXHIBIT A
REDUCED SALES CHARGES
You may qualify for a reduced sales charge through several purchase plans
available. You must notify the Fund at the time of purchase to take advantage
of the reduced sales charge.
Right of Accumulation
The sales charge is calculated by taking into account not only the dollar
amount of a new purchase of shares, but also the higher of cost or current
value of shares previously purchased in Calvert Group Funds that impose sales
charges. This automatically applies to your account for each new purchase.
Letter of Intent
If you plan to purchase $50,000 or more of Fund shares over the next 13
months, your sales charge may be reduced through a "Letter of Intent." You
pay the lower sales charge applicable to the total amount you plan to invest
over the 13-month period, excluding any money market fund purchases. Part of
your shares will be held in escrow, so that if you do not invest the amount
indicated, you will have to pay the sales charge applicable to the smaller
investment actually made. For more information, see the SAI.
GROUP PURCHASES
If you are a member of a qualified group, you may purchase shares of the Fund
at the reduced sales charge applicable to the group taken as a whole. The
sales charge is calculated by taking into account not only the dollar amount
of the shares you purchase, but also the higher of cost or current value of
shares previously purchased and currently held by other members of your group.
A "qualified group" is one which (i) has been in existence for more than six
months, (ii) has a purpose other than acquiring Fund shares at a discount, and
(iii) satisfies uniform criteria which
enable CDI and dealers offering Fund shares to realize economies of scale in
distributing such shares. A qualified group must have more than 10 members,
must be available to arrange for group meetings between representatives of CDI
or dealers distributing the Fund's shares, must agree to include sales and
other materials related to the Fund in its publications and mailings to
members at reduced or no cost to CDI or dealers.
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
alue of shares the plan has in Calvert Group of Funds (except money market
funds) is at least $1 million.
Neither the Fund, nor CDI, nor any affiliate thereof will reimburse a plan or
participant for any sales charges paid prior to receipt of such written
communication and confirmation by Calvert Group. Plan administrators should
send requests for the waiver of sales charges based on the above conditions
to: Calvert Group Retirement Plans, 4550 Montgomery Avenue, Suite 1000N,
Bethesda, Maryland 20814.
Other Circumstances
There is no sales charge on shares of any fund (portfolio or series) of the
Calvert Group of Funds sold to:
(1) current and retired members of the Board of Trustees/Directors of the
Calvert Group of Funds, (and the Advisory Council of the Calvert Social
Investment Fund);
(2) directors, officers and employees of the Advisor, Distributor, and their
affiliated companies;
(3) directors, officers and registered representatives of brokers distributing
the Fund's shares; and immediate family members of persons listed in (1), (2),
or (3) above;
(4) dealers, brokers, or registered investment advisors that have entered into
an agreement with CDI providing specifically for the use of shares of the Fund
(Portfolio or Series) in particular investment programs or products (where
such program or product already has a fee charged therein) made available to
the clients of such dealer, broker, or registered investment advisor;
(5) trust departments of banks or savings institutions for trust clients of
such bank or savings institution; and (6) purchases placed through a broker
maintaining an omnibus account with the Fund (Portfolio or Series) and the
purchases are made by (a) investment advisors or financial planners placing
trades for their own accounts (or the accounts of their clients) and who
charge a management, consulting, or other fee for their services; or (b)
clients of such investment advisors or financial planners who place trades for
their own accounts if such accounts are linked to the master account of such
investment advisor or financial planner on the books and records of the broker
or agent; or (c) retirement and deferred compensation plans and trusts,
including, but not limited to, those defined in section 401(a) or section 403(b)
of the I.R.C., and "rabbi trusts."
Dividends and Capital Gain Distributions from other Calvert Group Funds
You may prearrange to have your dividends and capital gain distributions from
another Calvert Group Fund with a sales charge automatically invested in
another account with no additional sales charge.
Purchases Made at Net Asset Value ("NAV")
Except for money market funds, if you make a purchase at NAV, you may exchange
that amount to another fund at no additional sales charge.
Reinstatement Privilege
If you redeem Fund shares and then within 30 days decide to reinvest in the
same Fund, you may do so at the net asset value next computed after the
reinvestment order is received, without a sales charge. You may use the
reinstatement privilege only once. The Fund reserves the right to modify or
eliminate this privilege.
<PAGE>
Calvert New World Fund, Inc.
Calvert New Africa Fund
Statement of Additional Information
July 31, 1997
INVESTMENT ADVISOR
Calvert-Sloan Advisers, L.L.C.
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
TRANSFER AGENT
Calvert Shareholder Services, Inc.
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
INDEPENDENT ACCOUNTANT
Coopers & Lybrand, L.L.P.
217 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 6
Investment Selection Process 7
Dividends, Distributions and Taxes 7
Net Asset Value 8
Calculation of Total Return 9
Advertising 9
Purchase and Redemption of Shares 10
Reduced Sales Charges (Class A) 10
Directors and Officers 10
Investment Advisor and Subadvisors 12
Method of Distribution 13
Transfer and Shareholder Servicing Agent 14
Fund Transactions 14
Independent Accountant and Custodians 14
General Information 14
Financial Statements 15
Appendix 15
STATEMENT OF ADDITIONAL INFORMATION-July 31, 1997
CALVERT NEW WORLD FUND, INC.
CALVERT NEW AFRICA FUND
4550 Montgomery Avenue, Bethesda, Maryland 20814
New Account (800) 368-2748 Shareholder
Information: (301) 951-4820 Services: (800) 368-2745
Broker (800) 368-2746 TDD for the Hearing-
Services: (301) 951-4850 Impaired: (800) 541-1524
This Statement of Additional Information is not a prospectus.
Investors should read the Statement of Additional Information in conjunction
with the Fund's Prospectus dated 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 investment objective and policies of Calvert New World Fund,
Inc., Calvert New Africa Fund (the "Fund") is to achieve capital appreciation
over time. The Fund seeks capital appreciation aggressively by focusing the
Fund's investments mostly in the emerging market of equity and equity-linked
securities and fixed-income securities of African and African-related
companies. The following discussion supplements the discussion in the
Prospectus. Unless otherwise specified, the investment objective, programs and
restrictions of the Fund are not fundamental policies. The operating policies
of the Fund are subject to change by its Board of Directors without
shareholder approval. Shareholders will be notified of a material change in
the investment objective, a non-fundamental or operating policy.
Foreign Securities
Additional costs may be incurred which are related to any
international investment, since 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.
United States Government policies have at times, in the past, through
imposition of interest equalization taxes and other restrictions, discouraged
United States investors from making certain investments abroad. While such
taxes or restrictions are not presently in effect, they may be reinstituted
from time to time as a means of fostering a favorable United States balance of
payments. In addition, foreign countries may impose withholding and taxes on
dividends and interest. See "Risk Factors" in the Prospectus.
Options and Futures Contracts
The Fund may purchase put and call options and engage in the writing
of covered call options and secured put options on securities and employ a
variety of other investment techniques. Specifically, the Fund may engage in
the purchase and sale of stock index future contracts, foreign currency
futures contracts, interest rate futures contracts, and options on such
futures, as described more fully below. Such investment policies and
techniques may involve a greater degree of risk than those inherent in more
conservative investment approaches.
The Fund will engage in such transactions only to hedge existing
positions. It will not engage in such transactions for the purposes of
speculation or leverage. 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.
The Fund will not engage in such options or futures transactions
unless it receives any necessary regulatory approvals permitting it to engage
in such transactions. The Fund may write "covered options" on securities in
standard contracts traded on national or foreign securities exchanges, or in
individually negotiated contracts traded over-the-counter. It may write such
options in order to receive the premiums from options that expire and to seek
net gains from closing purchase transactions with respect to such options.
To preserve the Fund's status as a regulated investment company under
Subchapter M of the Internal Revenue Code, it is the Fund's operating policy
to limit any gains on put or call options and other securities held less than
three months to less than 30% of the Fund's annual gross income.
Risks Related to Options Transactions. The Fund can close out its
respective positions in exchange-traded options only on an exchange which
provides a secondary market in such options. Although it intends to acquire
and write only such exchange-traded options for which an active secondary
market appears to exist, there can be no assurance that such a market will
exist for any particular option contract at any particular time. This might
prevent the Fund from closing an options position, which could impair its
ability to hedge effectively. The inability to close out a call position may
have an adverse effect on liquidity because the Fund may be required to hold
the securities underlying the option until the option expires or is exercised.
Writing (Selling) Call and Put Options
The Fund may write covered options on equity and debt securities and
indices. This means that, in the case of call options, so long as the Fund is
obligated as the writer of a call option, it will own the underlying security
subject to the option and, in the case of put options, it will, through its
custodian, deposit and maintain either cash or securities with a market value
equal to or greater than the exercise price of the option.
When the Fund writes a covered call option, it gives the purchaser
the right to purchase the security at the call option price at any time during
the life of the option. As the writer of the option, it receives a premium,
less a commission, and in exchange foregoes the opportunity to profit from any
increase in the market value of the security exceeding the call option price.
The premium serves to mitigate the effect of any depreciation in the market
value of the security. Writing covered call options can increase the income of
the Fund and thus reduce declines in the net asset value per share of the Fund
if securities covered by such options decline in value. Exercise of a call
option by the purchaser, however, will cause the Fund to forego future
appreciation of the securities covered by the option. 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.
The Fund may purchase securities which may be covered with call
options solely on the basis of considerations consistent with the investment
objectives and policies of the Fund. The Fund's turnover may increase through
the exercise of a call option; this will generally occur if the market value
of a "covered" security increases and the Fund has not entered into a closing
purchase transaction.
The Fund may write exchange-traded call options on its securities.
Call options may be written on portfolio securities, securities indices, or
foreign currencies. With respect to securities and foreign currencies, the
Fund may write call and put options on an exchange or over-the-counter. Call
options on portfolio securities will be covered since the Fund will own the
underlying securities. Call options on securities indices will be written only
to hedge in an economically appropriate way portfolio securities which are not
otherwise hedged with options or financial futures contracts and will be
"covered" by identifying the specific portfolio securities being hedged.
Options on foreign currencies will be covered by securities denominated in
that currency. Options on securities indices will be covered by securities
that substantially replicate the movement of the index. The Fund may not write
options on more than 50% of its total assets. The Fund 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 state regulations.
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.
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. When the
Fund writes a secured put option, it will gain a profit in the amount of the
premium, less a commission, so long as the price of the underlying security
remains above the exercise price. However, the Fund remains obligated to
purchase the underlying security from the buyer of the put option (usually in
the event the price of the security funds below the exercise price) at any
time during the option period. If the price of the underlying security falls
below the exercise price, the Fund may realize a loss in the amount of the
difference between the exercise price and the sale price of the security, less
the premium received. 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.
During the option period, the writer of a put option has assumed the
risk that the price of the underlying security or foreign currency will
decline below the exercise price. However, the writer of the put option has
retained the opportunity for an appreciation above the exercise price should
the market price of the underlying security or foreign currency increase.
Writing put options also involves risks relating to the Fund's ability to
close out options it has written.
Purchasing Call and Put Options, Warrants and Stock Rights
The Fund may invest up to an aggregate of 5% of its total assets in
exchange-traded or over-the-counter call and put options on securities and
securities indices and foreign currencies. Purchases of such options may be
made for the purpose of hedging against changes in the market value of the
underlying securities or foreign currencies. The Fund may invest in call and
put options whenever, in the opinion of the Subadvisor, a hedging transaction
is consistent with its investment objectives. Such transactions may be entered
into in order to limit the risk of a substantial increase in the market price
of the security which the Fund intends to purchase. 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.
Over-the-Counter ("OTC") Options
OTC options differ from exchange-traded options in several respects.
They are transacted directly with dealers and not with a clearing corporation,
and there is a risk of non-performance by the dealer. However, the premium is
paid in advance by the dealer. OTC options are available for a greater variety
of securities and foreign currencies, and in a wider range of expiration dates
and exercise prices than exchange-traded options. Since there is no exchange,
pricing is normally done by reference to information from a market maker,
which information is carefully monitored or caused to be monitored by the
Advisor and verified in appropriate cases.
A writer or purchaser of a put or call option can terminate it
voluntarily only by entering into a closing transaction. In the case of OTC
options, there can be no assurance that a continuous liquid secondary market
will exist for any particular option at any specific time. Consequently, the
Fund may be able to realize the value of an OTC option it has purchased only
by exercising it or entering into a closing sale transaction with the dealer
that issued it. Similarly, when the Fund writes an OTC option, it generally
can close out that option prior to its expiration only by entering into a
closing purchase transaction with the dealer to which it originally wrote the
option. If a covered call option writer cannot effect a closing transaction,
it cannot sell the underlying security or foreign currency until the option
expires or the option is exercised. Therefore, the writer of a covered OTC
call option may not be able to sell an underlying security even though it
might otherwise be advantageous to do so. Likewise, the writer of a secured
OTC put option may be unable to sell the securities pledged to secure the put
for other investment purposes while it is obligated as a put writer.
Similarly, a purchaser of an OTC put or call option might also find it
difficult to terminate its position on a timely basis in the absence of a
secondary market.
The Fund understands the position of the staff of the Securities and
Exchange Commission (the "SEC") to be that purchased OTC options and the
assets used as "cover" for written OTC options are illiquid securities. The
Fund will adopt procedures for engaging in OTC options transactions for the
purpose of reducing any potential adverse effect of such transactions upon the
liquidity of the Fund.
Futures Transactions
The Fund may purchase and sell futures contracts ("futures
contracts") but only when, in the judgment of the Advisor or Subadvisor, such
a position acts as a hedge against market changes which would adversely affect
the securities held by the Fund. These futures contracts may include, but are
not limited to, market index futures contracts and futures contracts based on
U.S. Government obligations.
A futures contract is an agreement between two parties to buy and
sell a security on a future date which has the effect of establishing the
current price for the security. Although futures contracts by their terms
require actual delivery and acceptance of securities, in most cases the
contracts are closed out before the settlement date without the making or
taking of delivery of securities. Upon buying or selling a futures contract,
the Fund deposits initial margin with its custodian, and thereafter daily
payments of maintenance margin are made to and from the executing broker.
Payments of maintenance margin reflect changes in the value of the futures
contract, with the Fund being obligated to make such payments if its futures
position becomes less valuable and entitled to receive such payments if its
positions become more valuable.
The Fund may only invest in futures contracts to hedge its existing
investment positions and not for income enhancement, speculation or leverage
purposes. Although some of the securities underlying the futures contract may
not necessarily meet the Fund's social criteria, any such hedge position taken
by the Fund will not constitute a direct ownership interest in the underlying
securities.
Futures contracts have been designed by boards of trade which have
been designated "contracts markets" by the Commodity Futures Trading
Commission ("CFTC"). As a registered investment company, the Fund is eligible
for exclusion from the CFTC's definition of "commodity pool operator," meaning
that it may invest in futures contracts under specified conditions without
registering with the CFTC. Among these conditions are requirements that to the
extent that the Fund enters into future contracts and options on futures
positions that are not for bonafide hedging purposes (as defined by the CFTC),
the aggregate initial margin and premiums on these positions (excluding the
amount by which options are "in-the-money") may not exceed 5% of the Fund's
net assets.
Options on Futures Contracts. The Fund may purchase and write put or call
options and sell call options on futures contracts in which it could otherwise
invest and which are traded on a U.S. exchange or board of trade. It may also
enter into closing transactions with respect to such options to terminate an
existing position; that is, to sell a put option already owned and to buy a
call option to close a position where the Fund has already sold a
corresponding call option.
The Fund may only invest in options on futures contracts to hedge its
existing investment positions and not for income enhancement, speculation or
leverage purposes. Although some of the securities underlying the futures
contract underlying the option may not necessarily meet the Fund's social
criteria, any such hedge position taken by the Fund will not constitute a
direct ownership interest in the underlying securities.
An option on a futures contract gives the purchaser the right, in
return for the premium paid, to assume a position in a futures contract-a long
position if the option is a call and a short position if the option is a
put-at a specified exercise price at any time during the period of the option.
The Fund will pay a premium for such options purchased or sold. In connection
with such options bought or sold, the Fund will make initial margin deposits
and make or receive maintenance margin payments which reflect changes in the
market value of such options. This arrangement is similar to the margin
arrangements applicable to futures contracts described above.
Put Options on Futures Contracts. The purchase of put options on futures
contracts is analogous to the sale of futures contracts and is used to protect
the portfolio against the risk of declining prices. The Fund may purchase put
options and sell put options on futures contracts it already owns. The Fund
will only engage in the purchase of put options and the sale of covered put
options on market index futures for hedging purposes.
Call Options on Futures Contracts. The sale of call options on futures
contracts is analogous to the sale of futures contracts and is used to protect
the portfolio against the risk of declining prices. The purchase of call
options on futures contracts is analogous to the purchase of a futures
contract. The Fund may only buy call options to close an existing position
where the Fund has already sold a corresponding call option, or for a cash
hedge. The Fund will only engage in the sale of call options and the purchase
of call options to cover for hedging purposes.
Writing Call Options on Futures Contracts. The writing of call options on
futures contracts constitutes a partial hedge against declining prices of the
securities deliverable upon exercise of the futures contract. If the futures
contract price at expiration is below the exercise price, the Fund will retain
the full amount of the option premium which provides a partial hedge against
any decline that may have occurred in the Fund's securities holdings.
Risks of Options and Futures Contracts. If the Fund has sold futures or takes
options positions to hedge its portfolio against decline in the market and the
market later advances, it may suffer a loss on the futures contracts or
options which it would not have experienced if it had not hedged. Correlation
is also imperfect between movements in the prices of futures contracts and
movements in prices of the securities which are the subject of the hedge. Thus
the price of the futures contract or option may move more than or less than
the price of the securities being hedged. Where the Fund has sold futures or
taken options positions to hedge against decline in the market, the market may
advance and the value of the securities held in the Fund may decline. If this
were to occur, the Fund might lose money on the futures contracts or options
and also experience a decline in the value of its portfolio securities.
However, although this might occur for a brief period or to a slight degree,
the value of a diversified portfolio will tend to move in the direction of the
market generally.
The Fund can close out futures positions only on an exchange or board
of trade which provides a secondary market in such futures. Although the Fund
intends to purchase or sell only such futures for which an active secondary
market appears to exist, there can be no assurance that such a market will
exist for any particular futures contract at any particular time. This might
prevent the Fund from closing a futures position, which could require the Fund
to make daily cash payments with respect to its position in the event of
adverse price movements.
Options on futures transactions bear several risks apart from those
inherent in options transactions generally. The Fund's ability to close out
its options positions in futures contracts will depend upon whether an active
secondary market for such options develops and is in existence at the time the
Fund seeks to close its positions. There can be no assurance that such a
market will develop or exist. Therefore, the Fund might be required to
exercise the options to realize any profit.
Foreign Currency Transactions
The value of the Fund's assets as measured in United States dollars
may be affected favorably or unfavorably by changes in foreign currency
exchange rates and exchange control regulations, and the Fund may incur costs
in connection with conversions between various currencies. The Fund will
conduct its foreign currency exchange transactions either on a spot (i.e.,
cash) basis at the spot rate prevailing in the foreign currency exchange
market, or through forward contracts to purchase or sell foreign currencies. A
forward foreign currency exchange contract involves an obligation to purchase
or sell a specific currency at a future date, which may be any fixed number of
days from the date of the contract agreed upon by the parties, at a price set
at the time of the contract. These contracts are traded directly between
currency traders (usually large commercial banks) and their customers.
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 Advisor 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.
When the Fund enters into a contract for the purchase or sale of a
security denominated in a foreign currency, it may want to establish the
United States dollar cost or proceeds, as the case may be. By entering into a
forward contract in United States dollars for the purchase or sale of the
amount of foreign currency involved in the underlying security transaction,
the Fund is able to protect itself against a possible loss between trade and
settlement dates resulting from an adverse change in the relationship between
the United States dollar and such foreign currency. However, this tends to
limit potential gains which might result from a positive change in such
currency relationships. The Fund may also hedge its foreign currency exchange
rate risk by engaging in currency financial futures and options transactions.
When the Subadvisor believes that the currency of a particular
foreign country may suffer a substantial decline against the United States
dollar, it may enter into a forward contract to sell an amount of foreign
currency approximating the value of some or all of the Fund's portfolio
securities denominated in such foreign currency. The forecasting of short-term
currency market movement is extremely difficult and whether such a short-term
hedging strategy will be successful is highly uncertain.
It is impossible to forecast with precision the market values of
portfolio securities at the expiration of a contract. Accordingly, it may be
necessary for the Fund to purchase additional currency on the spot market (and
bear the expense of such purchase) if the market value of the security is less
than the amount of foreign currency the Fund is obligated to deliver when a
decision is made to sell the security and make delivery of the foreign
currency in settlement of a forward contract. Conversely, it may be necessary
to sell on the spot market some of the foreign currency received upon the sale
of the portfolio security if its market value exceeds the amount of foreign
currency the Fund is obligated to deliver.
If the Fund retains the portfolio security and engages in an
offsetting transaction, it will incur a gain or a loss (as described below) to
the extent that there has been movement in forward contract prices. If the
Fund engages in an offsetting transaction, it may subsequently enter into a
new forward contract to sell the foreign currency. Should forward prices
decline during the period between the Fund's entering into a forward contract
for the sale of a foreign currency and the date it enters into an offsetting
contract for the purchase of the foreign currency, it would realize gains to
the extent the price of the currency it has agreed to sell exceeds the price
of the currency it has agreed to purchase. Should forward prices increase, the
Fund would suffer a loss to the extent the price of the currency it has agreed
to purchase exceeds the price of the currency it has agreed to sell. Although
such contracts tend to minimize the risk of loss due to a decline in the value
of the hedged currency, they also tend to limit any potential gain which might
result should the value of such currency increase. The Fund may have to
convert its holdings of foreign currencies into United States dollars from
time to time. Although foreign exchange dealers do not charge a fee for
conversion, they do realize a profit based on the difference (the "spread")
between the prices at which they are buying and selling various currencies.
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 entered into a contract to purchase a security
denominated in a foreign currency and purchased a foreign currency call to
hedge against a rise in the value of the currency but instead the currency
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.
Repurchase agreements
Repurchase agreements are arrangements under which the Fund buys
securities and the seller simultaneously agrees to repurchase the securities
at a specified time and price. The Fund may engage in repurchase agreements to
earn a higher rate of return than it could earn simply by investing in the
obligation which is the subject of the repurchase agreement. Repurchase
agreements are not, however, without risk. In the event of the bankruptcy of a
seller during the term of a repurchase agreement, a legal question exists as
to whether the Fund would be deemed the owner of the underlying security or
would be deemed only to have a security interest in and lien upon such
security. The Fund will only engage in repurchase agreements with recognized
securities dealers and banks determined to present minimal credit risk by the
Subadvisor under the direction and supervision of the Fund's Board of
Directors. In addition, the Fund will only engage in repurchase agreements
reasonably designed to secure fully during the term of the agreement the
seller's obligation to repurchase the underlying security and will monitor the
market value of the underlying security during the term of the agreement. If
the value of the underlying security declines and is not at least equal to the
repurchase price due the Fund pursuant to the agreement, the Fund will require
the seller to pledge additional securities or cash to secure the seller's
obligations pursuant to the agreement. If the seller defaults on its
obligation to repurchase and the value of the underlying security declines,
the Fund may incur a loss and may incur expenses in selling the underlying
security. Repurchase agreements are always for periods of less than one year,
and are considered illiquid if not terminable within seven days.
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, although, with
respect to 50% of the Fund's assets, the Fund does not
currently anticipate investing more than 25% in the
securities of a single issuer in the coming year).
2. Concentrate 25% or more of the value of its total
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, other than through the purchase of money market
instruments and repurchase agreements or by the purchase of
bonds, debentures or other debt securities, or the lending
of portfolio securities as detailed in the Prospectus, 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. Issue senior securities or 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. 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.
6. 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. The Fund will not make purchases while its borrowings
exceed 5% of total assets. In order to secure any permitted
borrowings under this section, the Fund may pledge, mortgage
or hypothecate its assets.
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:
7. 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.
8. 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.
9. Write, purchase or sell puts, calls or combinations
thereof except that the Fund may (a) write exchange-traded
covered call options on portfolio securities and enter into
closing purchase transactions with respect to such options,
and the Fund may write exchange-traded covered call options
on foreign currencies and secured put options on securities
and foreign currencies and write covered call and secured
put options on securities and foreign currencies traded over
the counter, and enter into closing purchase transactions
with respect to such options, (b) purchase exchange-traded
call options and put options and purchase call and put
options traded over the counter, provided that the premiums
on all outstanding call and put options do not exceed 5% of
its total assets, and enter into closing sale transaction
with respect to such options, and (c) engage in financial
futures contracts and related options transactions, provided
that the sum of the initial margin deposits on the Fund's
existing futures and related options positions and the
premiums paid for related options would not exceed 5% of its
total assets.
10. 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.
11. 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 and will ensure that there
is no duplication of advisory fees.
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. 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.
17. With respect to 75% of the Fund's assets, purchase
more than 10% of the outstanding voting securities of any
issuer.
Any investment restriction which involves a maximum percentage of
securities or assets (except for fundamental investment restriction six) 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.
INVESTMENT SELECTION PROCESS
Investments by the Fund are selected on the basis of their ability to
help achieve the objective of the Fund. The Subadvisor uses its best efforts
to select investments for the Fund that satisfy the Fund's investment criteria
to the greatest practical extent. New Africa Advisers, Inc., one of the Fund's
Subadvisors, has developed a number of techniques for evaluating the
performance of issuers in each of these areas, as explained in the Prospectus.
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.
Generally, dividends (including short-term capital gains) and
distributions are taxable to the shareholder in the year they are paid.
However, any dividends and distributions paid in January but declared during
the prior three months are taxable in the year declared.
Investors should note that the Internal Revenue Code ("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 long-term capital gain
dividends and 31% of each redemption transaction 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
capital gain dividends, not on redemptions); or (c) the Fund is notified by
the Internal Revenue Service that the TIN provided by the shareholder is
incorrect or that there has been underreporting of interest or dividends by
the shareholder. Affected shareholders will receive statements at least
annually specifying the amount withheld.
The Fund is required to report to the Internal Revenue Service the
following information with respect to each redemption transaction: (a) the
shareholder's name, address, account number and taxpayer identification
number; (b) the total dollar value of the redemptions; and (c) the Fund's
identifying CUSIP number.
Certain shareholders are exempt from the backup withholding and
broker reporting requirements. Exempt shareholders include: corporations;
financial institutions; tax-exempt organizations; individual retirement plans;
the U.S., a State, the District of Columbia, a U.S. possession, a foreign
government, an international organization, or any political subdivision,
agency or instrumentality of any of the foregoing; U.S. registered commodities
or securities dealers; real estate investment trusts; registered investment
companies; bank common trust funds; certain charitable trusts; foreign central
banks of issue. Non-resident aliens, certain foreign partnerships and foreign
corporations are generally not subject to either requirement but may instead
be subject to withholding under Sections 1441 or 1442 of the Internal Revenue
Code. Shareholders claiming exemption from backup withholding and broker
reporting should call or write the Fund for further information.
Nondiversified Status
The Fund is a "nondiversified" investment company under the
Investment Act of 1940 (the "Act"), which means the Fund is not limited by the
Act in the proportion of its assets that may be invested in the securities of
a single issuer. A nondiversified fund may invest in a smaller number of
issuers than a diversified fund. Thus, an investment in Calvert New Africa
Fund may, under certain circumstances, present greater risk of loss to an
investor than an investment in a diversified fund. However, Calvert New Africa
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.
NET ASSET VALUE
The public offering price of the shares of the Fund is the respective
net asset value per share plus the applicable sales charge. The net asset
values fluctuates based on the respective market value of the Fund's
investments. The net asset value per share is determined every business day at
the close of the regular session of the New York Stock Exchange (normally 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 Fund's net asset value per share is
determined by dividing total net assets (the value of its assets net of
liabilities, including accrued expenses and fees) by the number of shares
outstanding.
The assets of the Fund are valued as follows: (a) securities for
which market quotations are readily available are valued at the most recent
closing price; (b) for debt or equity securities traded over-the-counter where
closing prices are not readily available, at the mean of the bid and asked
price, or yield equivalent as obtained from one or more market makers for such
securities; (c) securities maturing within 60 days may be valued at cost, plus
or minus any amortized discount or premium, unless the Board of Directors
determines such method not to represent fair value; and (d) all other
securities and assets for which market quotations are not readily available
will be fairly valued by the Advisor in good faith under the supervision of
the Board of Directors. Securities primarily traded on foreign securities
exchanges are generally valued at the preceding closing values on their
respective exchanges where primarily traded. Equity options are valued at the
last sale price unless the bid price is higher or the asked price is lower, in
which event such bid or asked price is used. Exchange traded fixed income
options are valued at the last sale price unless there is no sale price, in
which event current prices provided by market makers are used.
Over-the-counter fixed income options are valued based upon current prices
provided by market makers. Financial futures are valued at the settlement
price established each day by the board of trade or exchange on which they are
traded. Because of the need to obtain prices as of the close of trading on
various exchanges throughout the world, the calculation of the Fund's net
asset value does not take place contemporaneously with the determination of
the prices of U.S. portfolio securities. For purposes of determining the net
asset value all assets and liabilities initially expressed in foreign
currency, values will be converted into United States dollar values at the
mean between the bid and offered quotations of such currencies against United
States dollars as last quoted by any recognized dealer. If an event were to
occur after the value of an investment was so established but before the net
asset value per share was determined which was likely to materially change the
net asset value, then the instrument would be valued using fair value
consideration by the Directors or their delegates.
Net Asset Value and Offering Price Per Share
Net asset value per share
($9,206,076/727,629 shares) $12.65
Maximum sales charge
(2.50% of offering price) 0.32
Offering price per share $12.97
CALCULATION OF TOTAL RETURN
The Fund may advertise "total return." Total return is computed by
taking the total number of shares purchased by a hypothetical $1,000
investment after deducting any applicable front-end sales charge, 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 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 $1,000; 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.
All total return quotations ("return with maximum load") reflect the
deduction of the maximum sales charge, except quotations of "return without
maximum load" which do not reflect deduction of the sales charge. Return
without maximum 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 load,
P = the entire $1,000 hypothetical initial investment and does not reflect
deduction of any sales charge. Return without maximum load may be advertised
for other periods, such as by quarter, or cumulatively for more than one year.
Total return, like net asset value per share, fluctuates in response
to changes in market conditions. Performance for any particular time period is
historical in nature and should not be considered an indication of future
return. For the periods shown, returns for the Fund's shares are as follows:
Average Annual
Return Without Return With
Maximum Sales Load Maximum Sales Load
One Year 5.42% 2.76%
Since Inception (April 12, 1995) 2.71% 1.39%
ADVERTISING
The Fund or its affiliates may provide information such as, but not
limited to, the economy, investment climate, investment principles and
rationale, 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, 1994). Calvert Group was also
the first to offer a family of socially responsible mutual fund portfolios.
PURCHASE AND REDEMPTION OF SHARES
Investments in the Fund made by mail, bank wire or electronic funds
transfer, through the Fund's branch office, Calvert Distributors, Inc. or
other brokers participating in the distribution of Fund shares, are credited
to a shareholder's account at the public offering price which is the net asset
value next determined after receipt by the Fund, Calvert Distributors, Inc.,
or the Fund's custodian bank or lock box facility, plus the applicable sales
charge as set forth in the Fund's Prospectus.
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. A service fee of $10.00,
plus any costs incurred by the Fund, will be charged investors whose purchase
checks are returned for insufficient funds.
The right of redemption 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 Commission, or if the Commission has ordered such a suspension for the
protection of shareholders.
If you redeem shares of the Fund after holding them less than two
years, the Fund will deduct a redemption fee equal to 2.0% of the net asset
value of the shares redeemed. 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 1.0% of the net asset value of the Fund, whichever
is less, or as allowed by law. Shareholder objections to redemptions in kind
will be handled on a case-by-case basis, under the guidance of the Board of
Directors.
To change redemption instructions already given, shareholders must
send a notice to Calvert Group, P.O. Box 419544 Kansas City, MO 64141-6544,
with a voided copy of a 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, trust company, savings association
or member firm of any national securities exchange. Other documentation may be
required from corporations, fiduciaries and institutional investors. The Fund
reserves the right to modify the telephone redemption privilege.
REDUCED SALES CHARGES
The Fund imposes reduced sales charges for its 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 Portfolio 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 Portfolio shares to their
members. For shareholders who intend to invest at least $50,000, a Letter of
Intent is included in the Appendix to this Statement of Additional
Information. See "Exhibit A - Reduced Sales Charges" in the Prospectus.
DIRECTORS AND OFFICERS
ELIAS BELAYNEH, Director. Mr. Belayneh is the President of U.S. -
Africa Chamber of Commerce, Washington, D.C., which serves as a collective
organization focusing on the promotion of trade and investment between Africa
and the United States. Date of birth: May 18, 1955. Address: 1899 L Street,
N.W., 5th Floor, Washington, D.C. 20036.
ROBERT S. BROWNE, Director. Mr. Browne is the President of the
Twenty-First Century Foundation, which makes grants in the areas of education
and community service and was formerly a research fellow at Howard University.
Mr. Browne also serves on the Advisory Council to Calvert Social Investment
Fund. In 1992 and 1993, Mr. Browne was a Ford Foundation Research Fellow. He
served as Staff Director to the Sub-Committee on International Development,
Finance, Trade, and Monetary Policy from 1986-1991. Date of birth: August 17,
1924. Address: 907 6th Street, S.W., Apt. 510, Washington, D.C. 20036.
BERTIE HOWARD, Director. Ms. Howard is the Executive Director of
Africa News Service. Date of birth: . Address: 0-16, Colony Apartments Chapel
Hill, NC 27514.
MICHAEL SUDARKASA, Director. Presently, Mr. Sudarkasa is the Director
of the International Division of International Trade and Investment Promotion
Services. He was previously President of 21st Century Africa, Inc. Date of
birth: August 5, 1964. Address: 1418 Woodman Avenue Silver Spring, MD 20902.
<F1>RENO J. MARTINI, Director and Vice President. Mr. Martini is a
Director and Senior Vice President of Calvert Group, Ltd., and Senior Vice
President and Chief Investment Officer of Calvert Asset Management Company,
Inc. He is an officer of each of the investment companies in the Calvert Group
of Funds. Date of birth: January 13, 1950.
MADALA MTHEMBU, Director. Presently, Mr. Mthembu is the Senior
Advisor to the Premier of the Northern Cape Province of South Africa. He was
previously a consultant with the Uniworld Group, Inc., and a graduate student
at Georgetown Law School. He is the former Assistant Chief U.S. Representative
for the African National Congress. Mr. Mthembu received his degree in law from
National University of Lesotho. Date of birth: April 22, 1964. Address Office
of the Premier, Private Bag X5016, Kimberley, 8300, Republic of South Africa.
DONALD R. NORLAND, Director. Mr. Norland is a foreign affairs
specialist, a 29-year career diplomat, and Ambassador, retired. He is a Senior
Policy Advisor at WORLDSPACE, Inc. Mr. Norland was a member of the American
Foreign Service Association ("AFSA"), Governing Board from 1991 to 1993, and
subsequently was the Vice President (elected). He was the U.S. Ambassador to
Chad from 1979 - 1981, and the Ambassador to Botswana from 1976 - 1979. Date
of birth: June 14, 1924. Address: 11 Dupont Circle, N.W., Washington, D.C.
20036.
1 MACEO K. SLOAN, Director. Mr. Sloan is Chairman, President, and
Chief Executive Officer of Sloan Financial Group and NCM Capital Management
Group, Inc., Chairman of New Africa Advisers, Inc., Sloan Communications,
Inc., and PCS Development Corporation. In addition, Mr. Sloan is a Director of
the National Association of Securities Professionals, a Chartered Financial
Analyst and a Fellow of the Life Management Institute. Date of birth: October
18, 1949. Address: New Africa Advisers, Inc., 103 West Main Street, Durham,
North Carolina 27701.
1 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. Address: 129 E. 69th Street, Apt. #8B, New York, NY 10021. DOB:
08/09/52.
TIM SMITH, Director. Mr. Smith is the Executive Director of the
Interfaith Center on Corporate Responsibility based in New York City. He is
also the Chair of the Advisory Council of the Calvert Social Investment Fund.
Date of birth: September 15, 1943. Address: Interfaith Center on Corporate
Responsibility, 475 Riverside, Room 566, New York, N.Y. 10115.
PAMELA D. VAN ARSDALE, Director. Ms. Van Arsdale is currently a
community activist. Prior to her retirement in 1983, she was employed by
Calvert Group. Date of birth: May 6, 1954. Address: 23 Church Road, Bedford,
New Hampshire 03110.
JUSTIN F. BECKETT, President. Mr. Beckett is President and CEO of New
Africa Advisers, Inc. He is a Director and Executive Vice President of Sloan
Financial Group, Inc. and NCM Capital Management Group, Inc., Executive Vice
President of Sloan Holdings, Inc., and a Director of Sloan Communications,
Inc. and PCS Development Corporation. Date of birth: April 5, 1963. Address:
New Africa Advisers, Inc., 103 West Main Street, Durham, North Carolina 27701.
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 and General Counsel of Calvert
Group, Ltd., and each of its subsidiaries, except for Calvert Distributors,
Inc., of which he is a Director, President, and Secretary. Date of birth:
August 12, 1947.
RONALD M. WOLFSHEIMER, CPA, Vice President, Treasurer, and
Controller. Mr. Wolfsheimer is an officer of each of the other investment
companies in the Calvert Group of Funds. He is Senior Vice President and
Controller of Calvert Group, Ltd. and its subsidiaries, except for Calvert
Distributors, Inc., of which he is a Director and Treasurer. Date of birth:
July 24, 1952.
CLIFFORD MPARE, Vice President. Mr. Mpare is the Chief Investment
Officer of NAA. Prior to joining NAA's parent company, Sloan Financial Group,
Mr. Mpare was a Senior Analyst with First Union Corp's private equity
department. He is a Chartered Financial Analyst and a Certified Management
Accountant. Date of birth: November 21, 1957. Address: New Africa Advisers,
Inc., 103 West Main Street, Durham, North Carolina 27701.
SUSAN WALKER BENDER, Esq., Assistant Secretary. Ms. Bender is
Assistant Secretary of Calvert Group, Ltd. and each of its subsidiaries and
each of the other investment companies in the Calvert Group of Funds. Date of
birth: January 29, 1959.
KATHERINE STONER, Esq., Assistant Secretary. Ms. Stoner is Assistant
Secretary of Calvert-Sloan Advisers, L.L.C., and Calvert Group, Ltd. and each
of its subsidiaries. Date of birth: October 21, 1956.
JAMILAH SABIR-CALLOWAY, Assistant Secretary. Ms. Sabir-Calloway is
the Corporate Secretary of NAA. Prior to that, Ms. Sabir-Calloway was the
Assistant to the Corporate Secretary of the Sloan Financial Group. Date of
birth: April 19, 1949. Address: New Africa Advisers, Inc., 103 West Main
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.
Directors of the Fund not affiliated with the Advisor currently
receive an annual fee of $1,000 for service as a member of the Board of
Directors plus a fee of $500 to $1000 for each Board and Committee meeting
attended. For the period from inception (April 12, 1995) to March 31, 1996,
Directors of the Fund not affiliated with the Fund's advisor received fees and
expenses of $36,086. For fiscal year 1997, Directors of the Fund not
affiliated with the Fund's advisor received fees and expenses of $55,621.
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/Directors
Deferred Compensation Plan. 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 (unaudited numbers)
<TABLE>
<S> <C> <C> <C>
Name of Director Aggregate Pension or Total
Compensation Retirement Compensation
from Registrant Benefits from
for service Accrued as Registrant and
as Director part of Fund Complex
Registrant paid to
Expenses Directors<F2>
Elias Belayneh $1,250 $0 $1,250
Robert Browne $1,250 $0 $1,250
Madala Mthembu $1,250 $0 $1,250
Donald Norland $1,250 $0 $1,250
Tim Smith $1,250 $0 $1,250
Pamela Van Arsdale $1,250 $0 $1,250
Bertie Howard N/A N/A N/A
Michael Sudarkasa N/A N/A N/A
<FN>
<F1> "Interested persons" of the Fund under the Investment Company Act of 1940.
<F2> As of March 31, 1997. The Fund Complex consists of nine (9) registered
investment companies.
</FN>
</TABLE>
INVESTMENT ADVISOR AND SUBADVISORS
The Fund's Investment Advisor is Calvert-Sloan Advisers, L.L.C., 4550
Montgomery Avenue, 1000N, Bethesda, Maryland 20814, a jointly-owned subsidiary
of Calvert Group, Ltd. and Sloan Holdings, Inc. Calvert Group Ltd. 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 April 11, 1995, 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 directors 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.
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 Advisor within the meaning of the Investment
Company Act of 1940; insurance premiums; trade association dues; legal and
audit fees; interest, taxes and other business fees; expenses of printing and
mailing reports, notices, prospectuses, and proxy material to shareholders;
annual shareholders' meeting expenses; and brokerage commissions and other
costs associated with the purchase and sale of portfolio securities. The
Advisor has agreed to reimburse the Fund for all expenses (excluding
brokerage, taxes, interest, and all or a portion of distribution and certain
other expenses, to the extent allowed or required by state or federal law or
regulation exceeding the most restrictive expense limitation in those states
where the Fund's shares are qualified for sale.
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 a
base annual fee of 1.50% of the Fund's average daily net assets. For the
fiscal 1996 period (since inception, April 12, 1995, through March 31, 1996),
the Fund paid advisory fees of $68,590 and in fiscal year 1997 the Fund paid
advisory fees of $119,720. The Advisor may voluntarily defer its fees or
assume expenses of the Fund. During 1996 fiscal period, the Advisor reimbursed
$56,484. For the 1997 fiscal period, the Advisor reimbursed $106,380.
Any fees the current payment of which is waived by the Advisor and
any expenses paid on behalf of or reimbursed to the Fund by the Advisor
through March 31, 1996, may be recaptured by the Advisor from the Fund during
the two years beginning on April 1, 1996, and ending on March 31, 1998; and
such recapture shall only be made to the extent that it does not result in
the Fund aggregate expenses exceeding state expense limit at the time the
original amount was waived. Each year's current advisory fees (incurred in
that year) will be paid in full before any recapture for a prior year is
applied. Recapture then will be applied beginning with the most recent year
first.
The Fund's Subadvisors are New Africa Advisers, Inc. ("NAA"), and
Calvert Asset Management Company, Inc. Pursuant to Investment Advisory
Agreements with the Advisor, the Subadvisors determine investment selections
for the Fund. For its services, NAA receives a base annual fee from the
Advisor of 0.755% of the Fund's average daily net assets under management.
CAMCO receives a base annual fee of 0.495%. In addition, a consulting fee of
0.10% is paid to Sloan Holdings, Inc. See the Prospectus for an explanation of
the Performance Fee.
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 0.25% of the Fund's average daily net assets. For
the fiscal 1996 period (since inception, April 12, 1995, through March 31,
1996), the Fund paid administrative services fees of $11,432. CASC waived a
portion of its fee during that period. For fiscal year 1997, CASC received
administrative services fees of $19,953.
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). CDI also
receives the portion of the sales charge in excess of the dealer reallowance.
For the period since inception, April 12, 1995, through March 31, 1996, CDI
received net sales charges of $17,193. For fiscal year 1997, CDI received net
sales charges of $9,725.
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, 0.75% of the Fund's average daily
net assets. For fiscal year 1997, the Fund Paid Distribution Plan expenses of
$59,860. Of the distribution expenses paid in fiscal 1996 and 1997, $26,963
and $39,425 was used for the printing and mailing of prospectuses and sales
materials to investors (other than current shareholders), and the remainder
was used for advertising.
The Fund's Distribution Plan was 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 Plan or in any
agreements related to the Plan. 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 Plan, the Directors
considered various factors including the amount of the distribution expenses.
The Directors determined that there is a reasonable likelihood that the Plan
will benefit the Fund and its shareholders.
The Plan 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 Plan that would materially increase the distribution cost to the
Fund requires approval of the shareholders of the affected class; otherwise,
the Plan may be amended by the Directors, including a majority of the
non-interested Directors as described above. The Plan 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 Plan or interested persons of any such party and who have no direct or
indirect financial interest in the Plan, and (ii) the vote of a majority of
the entire Board of Directors.
Apart from the Plan, 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.
TRANSFER AND SHAREHOLDER SERVICING AGENT
Calvert Shareholder Services, Inc., 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;
daily updating of shareholder accounts to reflect declaration and payment of
dividends; and preparing and distributing semi-annual statements to
shareholders regarding their accounts. The Fund will pay Calvert Shareholder
Services, Inc. fee based on the number of accounts and transactions. For the
period since inception, April 12, 1995, through March 31, 1996, the Fund paid
Calvert Shareholder Services, Inc. fees of $12,594. For fiscal year 1997, the
Fund paid Calvert Shareholder Services, Inc. fees of $17,690.
FUND TRANSACTIONS
Fund transactions are undertaken on the basis of their desirability
from an investment standpoint. Investment decisions and the choice of brokers
and dealers are made by the Fund's Advisor and Advisor under the direction and
supervision of the Fund's Board of Directors.
Broker-dealers who execute portfolio transactions on behalf of the
Fund are selected on the basis of their professional capability and the value
and quality of their services. The Fund may pay brokerage commissions to
broker-dealers who provide the Fund with statistical, research, or other
information and services. Although any statistical research or other
information and services provided by such broker-dealers may be useful to the
Advisor and the Advisor, the dollar value of such information and services is
generally indeterminable, and its availability or receipt does not serve to
materially reduce the Advisor's or Advisor's normal research activities or
expenses.
For the period since inception, April 12, 1995, through March 31,
1996, brokerage commissions totaling $3,797 were paid by the Fund. In fiscal
year 1997, brokerage commissions totaling $1,559 were paid by the Fund. No
commissions were paid to any officers or directors of the Fund or any of its
affiliates.
The Advisor and Advisor may also execute portfolio 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.
Depending upon market conditions, portfolio turnover, generally
defined as the lesser of annual sales or purchases of portfolio securities
divided by the average monthly value of the Fund's portfolio securities
(excluding from both the numerator and the denominator all securities whose
maturities or expiration dates as of the date of acquisition are one year or
less), expressed as a percentage, is under normal circumstances expected not
to exceed 100%. For the period since inception, April 12, 1995, through March
31, 1996, the portfolio turnover rate of the Fund was 6%. For the period
through March 31, 1997, the portfolio turnover rate of the Fund was 23%.
INDEPENDENT ACCOUNTANTS AND CUSTODIANS
Coopers & Lybrand, L.L.P. has been selected by the Board of Directors
to serve as independent accountants for fiscal year 1998. State Street Bank &
Trust Company, N.A., 225 Franklin Street, Boston, MA 02110, serves 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. The custodians have no part in deciding the Fund's
investment policies or the choice of securities that are to be purchased or
GENERAL INFORMATION
The Fund was organized as a Maryland Corporation, Calvert New World
Fund, Inc., on December 22, 1994.
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 one class of
shares, Class A. Upon any liquidation of the Fund, shareholders 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 Fund.
APPENDIX
CORPORATE BOND AND COMMERCIAL PAPER RATINGS
Corporate Bonds:
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:
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
Item 24. Financial Statements and Exhibits
(a) Financial statements
Incorporated by reference to Registrant's
audited Annual Report to Shareholders, dated
March 31, 1997, and filed June 11, 1997.
(b) Exhibits:
1. Articles of Incorporation, incorporated by
reference to Registrant's Initial Filing,
filed December 22, 1994.
2. By-Laws, incorporated by reference to
Registran's Pre-Effective Filing No.
2, filed April 10, 1995.
4. Specimen Stock Certificate,
incorporated by reference to
Registrant's Pre-Effective Filing No.
2, filed April 10, 1995.
5. Investment Advisory Contract,
incorporated by reference to
Registrant's Pre-Effective Filing No.
2, filed April 10, 1995.
5.a. Investment Sub-Advisory Contract (New
Africa Advisers, Inc.), incorporated
by reference to Registrant's
Pre-Effective Filing No. 2, filed
April 10, 1995.
5.b. Investment Sub-Advisory Contract
(Calvert Asset Management Company,
Inc.), incorporated by reference to
Registrant's Pre-Effective Filing No.
2, filed April 10, 1995.
6. Underwriting Agreement, incorporated
by reference to Registrant's
Pre-Effective Filing No. 2, filed
April 10, 1995.
7. Directors' Deferred Compensation
Agreement, incorporated by reference
to Registrant's Pre-Effective Filing
No. 2, filed April 10, 1995.
8. Custodial Contract, incorporated by
reference to Registrant's
Pre-Effective Filing No. 2, filed
April 10, 1995.
9.a. Transfer Agency Contract,
incorporated by reference to
Registrant's Pre-Effective Filing No.
2, filed April 10, 1995.
9.b. Administrative Services Agreement,
incorporated by reference to
Registrant's Pre-Effective Filing No.
2, filed April 10, 1995.
10. Opinion and Consent of Counsel as to
Legality of Shares Being Registered
filed herewith.
11. Consent of Independent Accountants to
Use of Report filed herewith.
13. Letter regarding Initial Capital,
incorporated by reference to
Registrant's Post-Effective Filing
No., 1, filed April 13, 1995.
14. Model Retirement Plans, incorporated
by reference to Registrant's
Pre-Effective Filing No. 2, filed
April 10, 1995.
15. Plan of Distribution, incorporated by
reference to Registrant's
Pre-Effective Filing No. 2, filed
April 10, 1995.
16. Schedule for Computation of
Performance Quotation, filed herewith.
17. (ii) Financial Data
Schedule, filed herewith.
Exhibits 3 and 12 are omitted because they are inapplicable.
<PAGE>
Item 25. Persons Controlled By or Under Common Control With Registrant
Registrant is controlled by its Board of Directors. In addition, members of
Registrant's Board of Directors may serve on a combination 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., while others may serve on the Boards of Calvert Social
Investment Fund, Acacia Capital Corporation, and Calvert World Values Fund, Inc.
Item 26. Number of Holders of Securities
As of May 31, 1997, there were 789 holders of record of
Registrant's shares.
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's Declaration of Trust also provides that Registrant
may purchase and maintain liability insurance on behalf of any officer,
trustee, 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 liability coverage,
plus $3 million in excess directors and officers liability coverage for
the independent directors only. Registrant also maintains a $8 million
Investment Company Blanket Bond issued by ICI Mutual Insurance Company,
P.O. Box 730, Burlington, Vermont, 05402.
Item 28. Business and Other Connections of Investment Advisor
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
---------------
Item 28. Business and Other Connections of Investment Adviser
Name Name of Company, Principal
Business and Address Capacity
Barbara J. Krumsiek Acacia Capital Corporation Officer
continued Calvert Municipal Fund, Inc. and
Calvert World Values Fund, Inc Director
Calvert New World Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Ronald M. Wolfsheimer 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 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
---------------
Item 28. Business and Other Connections of Investment Advisor
Name of Company, Principal
Name Business and Address Capacity
Ronald M. Wolfsheimer Calvert Administrative Officer
continued Services Company and
Service Company Director
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Shareholder Officer
Services, Inc.
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Distributors, Inc. Officer
Broker-Dealer and
4550 Montgomery Avenue Director
Bethesda, Maryland 20814
---------------
Calvert-Sloan Advisers, L.L.C. Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Item 28. Business and Other Connections of Investment Advisor
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
---------------
Calvert-Sloan Advisers, L.L.C. Director
Investment Advisor and
4550 Montgomery Avenue Officer
Bethesda, Maryland 20814
---------------
First Variable Rate Fund for Officer
Government Income
Calvert Tax-Free Reserves
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
--------------
Evelyne Steward Calvert Group, Ltd. Officer
Holding Company and
4550 Montgomery Avenue Director
Bethesda, Maryland 20814
---------------
Calvert-Sloan Advisers, L.L.C. Director
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Item 28. Business and Other Connections of Investment Adviser
Name of Company, Principal
Name Business and Address Capacity
Maceo K. Sloan Sloan Financial Group, Inc. Founder,
Holding Company Chairman,
103 West Main Street, 4th Floor President
Durham, North Carolina 27701 and CEO
------------------
Sloan Holdings, Inc. Chairman
Holding Company
103 West Main Street, 4th Floor
Durham, North Carolina 27701
------------------
New Africa Advisers, Inc. Chairman
Investment Adviser
103 West Main Street, 4th Floor
Durham, North Carolina 27701
------------------
NCM Capital Management Group, Inc. Founder,
Investment Adviser Chairman,
103 West Main Street, 4th Floor President
Durham, North Carolina 27701 and CEO
------------------
Sloan Communications, Inc.Chairman
Telecommunications Corporation
103 West Main Street, 4th Floor
Durham, North Carolina 27701
------------------
PCS Development Corporation Chairman
Telecommunications Corporation
P.O. Box 272
24 Vardry Street, Suite 401
Greenville, South Carolina 29602
------------------
Calvert-Sloan Advisers, L.L.C. Director
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
CREF College Retirement Equities
Fund Trustee
Equity Pension Fund
I730 Third Avenue
New York, New York 10017
------------------
Item 28. Business and Other Connections of Investment Adviser
Name of Company, Principal
Name Business and Address Capacity
Maceo K. Sloan Mechanics and Farmers Bank Director
continued 116 West Parrish Street
Durham, North Carolina 27702
------------------
National Association of Securities Director
Professionals
c/o Pryor, McClendon, Counts & Co., Inc.
1100 Peachtree Street, Suite 1660
Atlanta, Georgia 30309
------------------
News and Observer Publishing Director
Company
Newspaper/Magazine Publishing Company
P.O. Box 191
215 South McDowell Street
Raleigh, North Carolina 27601
------------------
National Investment Managers Founder
Association
Professional Organization Chairman
1899 L Street, N.W., 5th Floor
Washington, D.C. 20036
------------------
Calvert New World Fund, Inc. Director
Investment Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
--------------
Item 28. Business and Other Connections of Investment Advisor
Name of Company, Principal
Name Business and Address Capacity
Justin F. Beckett Sloan Financial Group, Inc. Director,
Holding Company Executive
103 West Main Street, Vice President
4th Floor
Durham, North Carolina 27701
------------------
Sloan Holdings, Inc. Executive
Holding Company Vice President
103 West Main Street, 4th Floor
Durham, North Carolina 27701
------------------
New Africa Advisers, Inc. Founder,
Investment Adviser President,
103 West Main Street, 4th Floor and CEO
Durham, North Carolina 27701
------------------
NCM Capital Management Group, Inc.
Investment Advise Executive
103 West Main Street, Vice President
4th Floor
Durham, North Carolina 27701
------------------
Sloan Communications, Inc. Director
Telecommunications Corporation
103 West Main Street, 4th Floor
Durham, North Carolina 27701
------------------
PCS Development Corporation Director
Telecommunications Corporation
P.O. Box 272
24 Vardry Street, Suite 401
Greenville, South Carolina 29602
------------------
Calvert-Sloan Advisers, L.L.C. Director
Investment Advisor and
4550 Montgomery Avenue Officer
Bethesda, Maryland 20814
---------------
Calvert New World Fund, Inc. Officer
Investment Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
--------------
Item 28. Business and Other Connections of Investment Advisor
Name of Company, Principal
Name Business and Address Capacity
Mary Ford Sloan Financial Group, Inc. Officer
Holding Company
103 West Main Street, 4th Floor
Durham, North Carolina 27701
------------------
Calvert-Sloan Advisers, L.L.C. Director
Investment Advisor and
4550 Montgomery Avenue Officer
Bethesda, Maryland 20814
---------------
NCM Capital Management Group, Officer
Inc. Investment Adviser 1990-1995
103 West Main Street, 4th Floor
Durham, North Carolina 27701
------------------
Item 28. Business and Other Connections of Investment Adviser
Name of Company, Principal
Name Business and Address Capacity
William M. Tartikoff First Variable Rate Fund for Officer
Government Income
Calvert Tax-Free Reserves
Money Management Plus
Calvert Social Investment Fund
The Calvert Fund
Acacia Capital Corporation
Calvert Municipal Fund, Inc.
Calvert World Values Fund, Inc.
Calvert New World Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Group, Ltd. Officer
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Administrative Officer
Services Company
Service Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Asset Management Officer
Company, Inc.
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Shareholder Officer
Services, Inc.
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Distributors, Inc. Officer
Broker-Dealer and
4550 Montgomery Avenue Director
Bethesda, Maryland 20814
----------------
Calvert-Sloan Advisers, L.L.C. Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Acacia National Life Insurance Officer
Insurance Company
51 Louisiana Avenue, NW
Washington, D.C. 20001
---------------
Item 28. Business and Other Connections of Investment Advisor
Name of Company, Principal
Name Business and Address Capacity
Susan Walker Bender 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 Services, Inc.Officer
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 Officer
Government Income
Calvert Tax-Free Reserves
Calvert Social Investment Fund
Money Management Plus
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
---------------
Item 28. Business and Other Connections of Investment Adviser
Name of Company, Principal
Name Business and Address Capacity
Steve Rakes Sloan Financial Group, Inc. Officer
Holding Company
103 West Main Street, 4th Floor
Durham, North Carolina 27701
---------------
Calvert-Sloan Advisers, L.L.C. Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Item 28. Business and Other Connections of Investment Adviser
Name of Company, Principal
Name Business and Address Capacity
Katherine Stoner Calvert Shareholder Services, Officer
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 Officer
Government Income
Calvert Tax-Free Reserves
Calvert Social Investment Fund
Money Management Plus
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 Administrative Officer
Services Company
Service Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Lisa D. Crossley Calvert Shareholder Services, Officer
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
---------------
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 Administrative Officer
Services Company
Service Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
First Variable Rate Fund for Officer
Government Income
Calvert Tax-Free Reserves
Calvert Social Investment Fund
Money Management Plus
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
---------------
Ivy Wafford Duke Calvert Shareholder Services, Officer
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
---------------
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 Administrative Officer
Services Company
Service Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
First Variable Rate Fund for Officer
Government Income
Calvert Tax-Free Reserves
Calvert Social Investment Fund
Money Management Plus
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 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.
Item 29. Principal Underwriter (continued)
(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
1) Not applicable.
3) The Registrant undertakes to furnish to each person to
whom a Prospectus is delivered, a copy of the Registrant's Annual Report
to Shareholders, upon request and without charge, when available.
<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 22nd day of July, 1997.
CALVERT NEW WORLD FUND, INC.
By: _________________________________
Barbara J. Krumsiek
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 22, 1997.
Signature Title
__________**____________ Director
Barbara J. Krumsiek (Principal Executive
Officer)
__________**____________ Treasurer
Ronald M. Wolfsheimer (Principal Accounting
Officer)
__________**____________ Director
Elias Belayneh
__________**____________ Director
Robert S. Browne
__________**____________ Director
Reno Martini
__________**____________ Director
Madala Mthembu
__________**____________ Director
Donald R. Norland
__________**____________ Director
Maceo K. Sloan
__________**____________ Director
Tim Smith
__________**____________ Director
Pam Van Arsdale
**By:_____________________
Name: Katherine Stoner
as Attorney-in-fact
Executed by Katherine Stoner
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-11
24(b)(16) Schedule for Computation of Performance Quotation
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
<PAGE>
Exhibit 10
July 22, 1997
Securities and Exchange Commission
Judiciary Plaza
450 Fifth Street, N.W.
Washington, D.C. 20549
Re: Exhibit 10, Form N-1A
Calvert New World Fund, Inc.
File numbers: 33-87744 and 811-8924
Ladies and Gentlemen:
As counsel to Calvert Group, Ltd., it is my opinion that the
securities being registered by this Post-Effective Amendment No. 3 will
be legally issued, fully paid and non-assessable when sold. My opinion
is based on an examination of documents related to Calvert New World
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. 3 to its Registration Statement.
Sincerely,
/s/William M. Tartikoff
William M. Tartikoff
General Counsel
CONSENT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of Calvert New World Fund, Inc.
We consent to the incorporation by reference in Post-Effective Amendment
No. 3 to the Registration Statement of Calvert New World Fund, Inc. on Form N-1A
(File Numbers 33-87744 and 811-8924) of our report dated May 9, 1997, on our
audit of the financial statements and financial highlights of Calvert New Africa
Fund, 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 Director of Calvert New World Fund, Inc.
(The "Fund"), hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff,
Susan Walker Bender, Ivy Wafford Duke, and Katherine Stoner my true and lawful
attorneys, with full power to each of them, to sign for me and in my name
in the appropriate capacities, all registration statements
and amendments filed by the Funds with any federal or state agency, and to
do all such things in my name and behalf necessary for registering and
maintaining registration or exemptions from registration of the Funds
with any government agency in any jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things
in my name and behalf to comply with the provisions of all federal,
state and foreign laws, regulations, and policy pronouncements affecting
the Funds, including, but not limited to, the Securities Act of 1933,
the Securities Exchange Act of 1934, the Investment Company Act of 1940,
the Investment Advisers Act of 1940, and all state laws regulating the
securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Funds in
connection with any transaction approved by the Board of Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the
Funds, the signing is automatically ratified and confirmed by me by
virtue of this Power of Attorney.
WITNESS my hand on the date set forth below.
May 8, 1997
Date Signature
Elias Belayneh
Witness Name of Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Director of Calvert New World Fund, Inc.
(The "Fund"), hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff,
Susan Walker Bender, Ivy Wafford Duke, and Katherine Stoner my true and lawful
attorneys, with full power to each of them, to sign for me and in my name
in the appropriate capacities, all registration statements
and amendments filed by the Funds with any federal or state agency, and to
do all such things in my name and behalf necessary for registering and
maintaining registration or exemptions from registration of the Funds
with any government agency in any jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things
in my name and behalf to comply with the provisions of all federal,
state and foreign laws, regulations, and policy pronouncements affecting
the Funds, including, but not limited to, the Securities Act of 1933,
the Securities Exchange Act of 1934, the Investment Company Act of 1940,
the Investment Advisers Act of 1940, and all state laws regulating the
securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Funds in
connection with any transaction approved by the Board of Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the
Funds, the signing is automatically ratified and confirmed by me by
virtue of this Power of Attorney.
WITNESS my hand on the date set forth below.
May 8, 1997
Date Signature
Robert S. Browne
Witness Name of Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Director of Calvert New World Fund, Inc.
(The "Fund"), hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff,
Susan Walker Bender, Ivy Wafford Duke, and Katherine Stoner my true and lawful
attorneys, with full power to each of them, to sign for me and in my name
in the appropriate capacities, all registration statements
and amendments filed by the Funds with any federal or state agency, and to
do all such things in my name and behalf necessary for registering and
maintaining registration or exemptions from registration of the Funds
with any government agency in any jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things
in my name and behalf to comply with the provisions of all federal,
state and foreign laws, regulations, and policy pronouncements affecting
the Funds, including, but not limited to, the Securities Act of 1933,
the Securities Exchange Act of 1934, the Investment Company Act of 1940,
the Investment Advisers Act of 1940, and all state laws regulating the
securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Funds in
connection with any transaction approved by the Board of Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the
Funds, the signing is automatically ratified and confirmed by me by
virtue of this Power of Attorney.
WITNESS my hand on the date set forth below.
May 8, 1997
Date Signature
Barbara J. Krumsiek
Witness Name of Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Director of Calvert New World Fund, Inc.
(The "Fund"), hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff,
Susan Walker Bender, Ivy Wafford Duke, and Katherine Stoner my true and lawful
attorneys, with full power to each of them, to sign for me and in my name
in the appropriate capacities, all registration statements
and amendments filed by the Funds with any federal or state agency, and to
do all such things in my name and behalf necessary for registering and
maintaining registration or exemptions from registration of the Funds
with any government agency in any jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things
in my name and behalf to comply with the provisions of all federal,
state and foreign laws, regulations, and policy pronouncements affecting
the Funds, including, but not limited to, the Securities Act of 1933,
the Securities Exchange Act of 1934, the Investment Company Act of 1940,
the Investment Advisers Act of 1940, and all state laws regulating the
securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Funds in
connection with any transaction approved by the Board of Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the
Funds, the signing is automatically ratified and confirmed by me by
virtue of this Power of Attorney.
WITNESS my hand on the date set forth below.
May 8, 1997
Date Signature
Reno Martini
Witness Name of Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Director of Calvert New World Fund, Inc.
(The "Fund"), hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff,
Susan Walker Bender, Ivy Wafford Duke, and Katherine Stoner my true and lawful
attorneys, with full power to each of them, to sign for me and in my name
in the appropriate capacities, all registration statements
and amendments filed by the Funds with any federal or state agency, and to
do all such things in my name and behalf necessary for registering and
maintaining registration or exemptions from registration of the Funds
with any government agency in any jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things
in my name and behalf to comply with the provisions of all federal,
state and foreign laws, regulations, and policy pronouncements affecting
the Funds, including, but not limited to, the Securities Act of 1933,
the Securities Exchange Act of 1934, the Investment Company Act of 1940,
the Investment Advisers Act of 1940, and all state laws regulating the
securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Funds in
connection with any transaction approved by the Board of Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the
Funds, the signing is automatically ratified and confirmed by me by
virtue of this Power of Attorney.
WITNESS my hand on the date set forth below.
May 8, 1997
Date Signature
Madala Mthembu
Witness Name of Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Director of Calvert New World Fund, Inc.
(The "Fund"), hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff,
Susan Walker Bender, Ivy Wafford Duke, and Katherine Stoner my true and lawful
attorneys, with full power to each of them, to sign for me and in my name
in the appropriate capacities, all registration statements
and amendments filed by the Funds with any federal or state agency, and to
do all such things in my name and behalf necessary for registering and
maintaining registration or exemptions from registration of the Funds
with any government agency in any jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things
in my name and behalf to comply with the provisions of all federal,
state and foreign laws, regulations, and policy pronouncements affecting
the Funds, including, but not limited to, the Securities Act of 1933,
the Securities Exchange Act of 1934, the Investment Company Act of 1940,
the Investment Advisers Act of 1940, and all state laws regulating the
securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Funds in
connection with any transaction approved by the Board of Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the
Funds, the signing is automatically ratified and confirmed by me by
virtue of this Power of Attorney.
WITNESS my hand on the date set forth below.
May 8, 1997
Date Signature
Donald R. Norland
Witness Name of Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Director of Calvert New World Fund, Inc.
(The "Fund"), hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff,
Susan Walker Bender, Ivy Wafford Duke, and Katherine Stoner my true and lawful
attorneys, with full power to each of them, to sign for me and in my name
in the appropriate capacities, all registration statements
and amendments filed by the Funds with any federal or state agency, and to
do all such things in my name and behalf necessary for registering and
maintaining registration or exemptions from registration of the Funds
with any government agency in any jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things
in my name and behalf to comply with the provisions of all federal,
state and foreign laws, regulations, and policy pronouncements affecting
the Funds, including, but not limited to, the Securities Act of 1933,
the Securities Exchange Act of 1934, the Investment Company Act of 1940,
the Investment Advisers Act of 1940, and all state laws regulating the
securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Funds in
connection with any transaction approved by the Board of Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the
Funds, the signing is automatically ratified and confirmed by me by
virtue of this Power of Attorney.
WITNESS my hand on the date set forth below.
May 8, 1997
Date Signature
Maceo K. Sloan
Witness Name of Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Director of Calvert New World Fund, Inc.
(The "Fund"), hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff,
Susan Walker Bender, Ivy Wafford Duke, and Katherine Stoner my true and lawful
attorneys, with full power to each of them, to sign for me and in my name
in the appropriate capacities, all registration statements
and amendments filed by the Funds with any federal or state agency, and to
do all such things in my name and behalf necessary for registering and
maintaining registration or exemptions from registration of the Funds
with any government agency in any jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things
in my name and behalf to comply with the provisions of all federal,
state and foreign laws, regulations, and policy pronouncements affecting
the Funds, including, but not limited to, the Securities Act of 1933,
the Securities Exchange Act of 1934, the Investment Company Act of 1940,
the Investment Advisers Act of 1940, and all state laws regulating the
securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Funds in
connection with any transaction approved by the Board of Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the
Funds, the signing is automatically ratified and confirmed by me by
virtue of this Power of Attorney.
WITNESS my hand on the date set forth below.
May 8, 1997
Date Signature
Tim Smith
Witness Name of Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Director of Calvert New World Fund, Inc.
(The "Fund"), hereby constitute Ronald M. Wolfsheimer, William M. Tartikoff,
Susan Walker Bender, Ivy Wafford Duke, and Katherine Stoner my true and lawful
attorneys, with full power to each of them, to sign for me and in my name
in the appropriate capacities, all registration statements
and amendments filed by the Funds with any federal or state agency, and to
do all such things in my name and behalf necessary for registering and
maintaining registration or exemptions from registration of the Funds
with any government agency in any jurisdiction, domestic or foreign.
The same persons are authorized generally to do all such things
in my name and behalf to comply with the provisions of all federal,
state and foreign laws, regulations, and policy pronouncements affecting
the Funds, including, but not limited to, the Securities Act of 1933,
the Securities Exchange Act of 1934, the Investment Company Act of 1940,
the Investment Advisers Act of 1940, and all state laws regulating the
securities industry.
The same persons are further authorized to sign my name to any
document needed to maintain the lawful operation of the Funds in
connection with any transaction approved by the Board of Directors.
When any of the above-referenced attorneys signs my name to any
document in connection with maintaining the lawful operation of the
Funds, the signing is automatically ratified and confirmed by me by
virtue of this Power of Attorney.
WITNESS my hand on the date set forth below.
May 8, 1997
Date Signature
Pam Van Arsdale
Witness Name of Director
Exhibit 16
SCHEDULE FOR COMPUTATION OF PERFORMANCE QUOTATION
(UNAUDITED)
Calvert New World Fund, Inc.
Calvert New Africa Fund
Average Annual Total Return (maximum sales load
deducted)
Computation of the total return of Calvert New
World Fund, Inc., Calvert New Africa Fund, for the
one year period ended March 31, 1997, and for the
period from inception (April 12, 1995) to March 31,
1997.
1 Year P(1 + T)n = ERV
P = $1000
T = ERV/P - 1
n = 1 year
ERV = $1027.62 from 4/1/96 to 3/31/97
T = ($1027.62/$1000.00) - 1 =.02760 = 2.76%
From Inception P(1 + T) n = ERV
P = $1000
T = ERV/P - 1
n = from inception
ERV = $1013.90 from 4/21/95 to 3/31/97
T = ($1013.90/$1000.00) - 1 = .01390 = 1.39%
<PAGE>
SCHEDULE FOR COMPUTATION OF PERFORMANCE QUOTATION
(UNAUDITED)
Calvert New World Fund, Inc.
Calvert New Africa Fund
Average Annual Total Return (no sales load deducted)
Non-standardized return (which does not reflect the
deduction of the sales charge) for the one year
period ended March 31, 1997, and for the period
from inception (April 12, 1995) to March 31, 1997.
1 Year P(1 + T)n + =
ERV*
P = $1000
T = ERV/P - 1
ERV = $1054.17 from 4/1/96 to 3/31/97
(on a $1000 investment, no sales load)
T = $1054.17/$1000.00) - 1 = .05417 = 5.42%
From Inception P(1 + T) n = ERV
P = $1000
T = ERV/P - 1
n = 1 year (from inception)
ERV = $1027.10 from 4/12/95 to 3/31/97
(on a $1000 investment, no sales load)
T = ($1027.10/$1000.00) - 1 = .02710= 2.71%
*Less 2% redemption fee if the redemption is made
within 2 years of the purchase.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000934700
<NAME> CALVERT NEW WORLD FUND
<SERIES>
<NUMBER> 222
<NAME> CALVERT NEW AFRICA FUND
<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> 8030
<INVESTMENTS-AT-VALUE> 8967
<RECEIVABLES> 34
<ASSETS-OTHER> 303
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 9304
<PAYABLE-FOR-SECURITIES> 2
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 96
<TOTAL-LIABILITIES> 98
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 8647
<SHARES-COMMON-STOCK> 728
<SHARES-COMMON-PRIOR> 664
<ACCUMULATED-NII-CURRENT> (43)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (335)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 937
<NET-ASSETS> 9206
<DIVIDEND-INCOME> 223
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 259
<NET-INVESTMENT-INCOME> (36)
<REALIZED-GAINS-CURRENT> (267)
<APPREC-INCREASE-CURRENT> 809
<NET-CHANGE-FROM-OPS> 506
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1241
<NUMBER-OF-SHARES-REDEEMED> (515)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 1232
<ACCUMULATED-NII-PRIOR> (7)
<ACCUMULATED-GAINS-PRIOR> (68)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 120
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 389
<AVERAGE-NET-ASSETS> 7981
<PER-SHARE-NAV-BEGIN> 12.00
<PER-SHARE-NII> (0.05)
<PER-SHARE-GAIN-APPREC> 0.70
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.65
<EXPENSE-RATIO> 3.25
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
