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. 4 XX
and/or
REGISTRATION STATEMENT UNDER THE
INVESTMENT ACT OF 1940
Amendment No. 7 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 June 1, 1998
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.
<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 June 1, 1998
CALVERT NEW AFRICA FUND
4550 Montgomery Avenue, Bethesda, Maryland 20814
Investment Objective
The investment objective of 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 ("US") 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.
Purchase Information
The Fund offers three classes of shares, each with different expense levels
and sales charges. You may choose to purchase (i) Class A shares, with a sales
charge imposed at the time you purchase the shares ("front-end sales charge"),
(ii) Class B shares, which impose no front-end sales charge, but will impose a
deferred sales charge at the time of redemption, depending on how long you
have owned the shares ("contingent deferred sales charge," or "CDSC"); or
(iii) Class C shares which impose no front-end sales charge but will impose a
CDSC if shares are sold within one year. Class C shares are not available
through all brokers. Class B and C shares have a higher level of expenses than
Class A shares, including higher Rule 12b-1 fees. These alternatives permit
you to choose the method of purchasing shares that is most beneficial to you,
depending on the amount of the purchase, the length of time you expect to hold
the shares, and other circumstances. See "Alternative Sales Options" for
further details. To open an account, call your broker, or complete and return
the enclosed Account Application.
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.
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 June 1, 1998) 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 (http://www.sec.gov) containing the SAI, material
incorporated by reference, and other information regarding the Fund.
To Open An Account
Call your broker, or complete and return the enclosed Account Application.
Minimum initial investment is $2,000 (may be lower for certain retirement
plans).
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 of the specific investments for the Fund. (See "Management of the
Fund.")
FUND EXPENSES
A. Shareholder Transaction Costs Class A Class B Class C
Maximum Front-End Sales Charge on
Purchases (as a percentage of offering price) 4.75% None None
Maximum Contingent Deferred Sales Charge
(as a percentage of original purchase price
or redemption proceeds, as applicable) None 5.00%1 1.00%2
B. Annual Fund Operating Expenses - Fiscal Year 1998
(as a percentage of average net assets)
Management Fees 1.75% 1.75% 1.75%
Rule 12b-1 Service and Distribution Fees 0.25% 1.00% 1.00%
Other Expenses (After expense
reimbursement) 1.25% 1.25% 1.25%
Total Fund Operating Expenses
(After expense reimbursement) 3.25% 4.00% 4.00%
1A contingent deferred sales charge is imposed on the proceeds of
Class B shares redeemed within 6 years, subject to certain exceptions. That
charge is imposed as a percentage of net asset value at the time of purchase
or redemption, whichever is less, and declines from 5% in the first year that
shares are held, to 4% in the second and third years, 3% in the fourth year,
2% in the fifth year, and 1% in the sixth year. There is no charge on
redemptions of Class B shares held for more than six years. See "Calculation
of Contingent Deferred Sales Charge" below.
2A contingent deferred sales charge is imposed on the proceeds of
Class C shares redeemed within one year. That charge is imposed as a
percentage of net asset value at the time of purchase or redemption, whichever
is less. See "Calculation of Contingent Deferred Sales Charge."
C. Example:
You would pay the following expenses on a $1,000 investment, assuming
(1) 5% annual return and (2) for Class A shares, payment of maximum initial
sales charge at time of purchase and (3) for Class B and Class C shares,
payment of maximum applicable contingent deferred sales charge.
1 YEAR 3 YEARS 5 YEARS 10 YEARS
Class A $79 $143 $209 $386
Class B
Assuming a complete
redemption at end of period $90 $162 $225 $405
Assuming no redemption $40 $122 $205 $405
Assuming a complete
Class C
redemption at end of period $50 $122 $205 $421
Assuming no redemption $40 $122 $205 $421
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).
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 applicable to Class A shares. If you request a wire
redemption of less than $1,000, you will be charge a $5 wire fee.
Annual Fund Operating Expenses
are based on the Fund's historical expenses, except (1) Rule 12b-1 Service and
Distribution Fees for Class A have been restated to reflect the decrease in
such fees effective June 1, 1998, and (2) other Expenses for Class B and C are
estimates. 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% depending on performance. The Fund incurs Other Expenses for
maintaining shareholder records, furnishing shareholder statements and
reports, and other services. Management Fees and Other Expenses have already
been reflected in the Fund's daily share price and are not charged directly to
individual shareholder accounts. Please refer to "Management of the Fund" for
further information.
The Advisor may voluntarily defer fees or assume expenses of the Fund. If the
Advisor had not done so for fiscal year 1998, Other Expenses would have been
2.65% for Class A. Total Fund Operating Expenses would have been 4.65% for
Class A. Through December 31, 1998, the Advisor has agreed to cap the Fund's
expenses at 3.25% for Class A, and 4.00% for each of Class B and Class C.
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 Class A share
outstanding for the Fund throughout each period. There were no outstanding
Class B or Class C shares during the periods presented. 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.
Year Ended Year Ended Year Ended
Calvert New Africa Fund March 31, 1998 March 31, 1997 March 31,1996^
Net asset value, beginning of period $12.65 $12.00 $12.00
Income from investment operations
Net investment income (.07) (.05) (.04)
Net realized and unrealized
gain (loss) .89 .70 .04
Total from investment operations .82 .65 -
Distributions from
In excess of net realized gain (.13) - -
Total distributions (.13) - -
Total increase (decrease) in net
asset value .69 .65 -
Net asset value, ending $13.34 $12.65 $12.00
Total return4 6.72% 5.42% 0.00%
Ratio to average net assets:
Net investment income (loss) (.60%) (.45%) (.54)%(a)
Total expenses5 3.76% 3.54% 3.75%(a)
Net expenses 3.25% 3.25% 3.24%(a)
Expenses reimbursed .89% 1.33% 1.24%(a)
Portfolio turnover 74% 23% 6%
Average commission rate paid $.0165 $.0263 $N/A
Net assets, ending (in thousands) $11,613 $9,206 $7,974
Number of shares outstanding
ending (in thousands) 870 728 664
(a) Annualized
4 Total return is not annualized and does not reflect deduction of the
front-end sales charge.
5 This ratio reflects total expenses before reduction for fees paid
indirectly; such reductions are included in the
ratio of net expenses.
^ From April 12, 1995, inception.
N/A - Disclosure not applicable to prior years.
<PAGE>
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 US,
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 US 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
climactic 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 US 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 US 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 US 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 US Government and US 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.
Through portfolio diversification and credit analysis, investment risk can be
reduced, although there can be no assurance that losses will not occur.
Currency Risks
Foreign securities involve currency risks. The US 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 US. Foreign companies are not subject to
uniform audit and financial reporting standards, practices and requirements
comparable to those in the US.
Foreign stock markets are generally not as developed or efficient as those in
the US. In most foreign markets volume and liquidity are less than in the US
and, at times, volatility of price can be greater than that in the US. Fixed
commissions on foreign stock exchanges are generally higher than the
negotiated commissions on US exchanges. There is generally less government
supervision and regulation of foreign stock exchanges, brokers and companies
than in the US.
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 US dollar-denominated American
Depositary Receipts ("ADRs"), which are traded in the US on exchanges or over
the counter. ADRs are receipts typically issued by a US 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 US 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, US 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 US 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 US 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, US 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 US 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 for each class. 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 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
Serves on the Advisory Council of the Calvert Social Investment Fund
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
Director, International Trade and Investment Promotion Services,
Labat-Anderson Incorporated
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 for the City of St. Louis, located at #1
Mercantile Center, St. Louis, Missouri 63101, currently, as of May 19, 1998,
controls 47.85% 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 US 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 $4.4 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 US 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 Calvert
Variable Series, Inc.
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 26-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 and Review "with Louis Rukeyser" 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 eleven 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 US
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 eleven years of investment experience, hands-on
knowledge of African capital markets, and experience in the US 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 US dollar portion of the Fund's cash reserves.
The US 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, DC area.
Calvert Group, Ltd., parent of the Fund's investment advisor, shareholder
servicing agent, and distributor, is a subsidiary of Acacia Mutual Life
Insurance Company of Washington, DC. Calvert Group is one of the largest
investment management firms in the Washington, DC area. Calvert Group, Ltd.
and its subsidiaries are located at 4550 Montgomery Avenue, Suite 1000N,
Bethesda, MD 20814. As of December 31, 1997, Calvert Group managed and
administered assets in excess of $5.0 billion and more than 200,000
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
Advisor 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
Morgan Stanley Performance Fee
South Africa Index Adjustment
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 shareholder servicing agent.
National Financial Data Services, Inc. ("NFDS"), 1004 Baltimore, Kansas City,
Missouri 64105, is the transfer and dividend disbursing agent for the Fund.
SHAREHOLDER GUIDE
How To Open An Account
Getting Started
Regardless of the investment option you choose (see below), the enclosed
application must be completed and signed for each new account. When multiple
classes of shares ore offered, please specify which class you wish to
purchase. Additional documents may be required for corporations, associations
and certain fiduciaries, and for retirement plans. For more information about
account options mentioned below, contact your broker or our shareholder
services department at 800.368.2748.
How to buy shares
(be sure to specify which class you are buying)
METHOD INITIAL INVESTMENT ADDITIONAL INVESTMENTS
By Mail $2,000 minimum $250 minimum
Please make your check payable Please make your check payable
to the Fund and 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 64141-6739
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 Your $2,000 minimum $250 minimum
Financial Professional
At the Calvert Visit the Calvert Office to make investments by check.
Office See the back cover page for the address.
Investment Options
This prospectus offers three classes of shares:
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.
Class B Shares - Back-End Load Option
Class B shares are sold without a sales charge at the time of purchase, but
are subject to a deferred sales charge if they are redeemed within six
calendar years after purchase. Class B shares will automatically convert to
Class A shares at the end of eight calendar years after purchase.
Class C shares - Level Load Option
Class C shares are sold without a front-end sales charge at the time of
purchase. They are
subject to a deferred sales charge if they are redeemed within one year after
purchase.
Class B and C shares have higher expenses.
The Fund bears some of the costs of selling its shares under Distribution
Plans with respect to its Class A, B and C shares pursuant to Rule 12b-1 under
the Investment Company Act of 1940. Payments under the Class A Distribution
Plan are limited to 0.25% annually of the average daily net asset value of
Class A shares, while payments under the Class B and C Distribution Plan are
1.00% annually of the average daily net asset attributable to their respective
classes.
Considerations for deciding which class of shares to buy.
Income distributions for Class A shares will probably be higher than those for
Class B and C shares, as a result of the distribution expenses described
above. (See also "Total Return.") You should consider Class A shares if you
qualify for a reduced sales charge under Class A or if you plan to hold the
shares for several years. The Fund will not normally accept any purchase of
Class B shares in the amount of $250,000 or more. Class C shares are not
available for investments of $1 million or more, and are not available through
all brokers. Brokers or others may receive different levels of compensation
depending on which class of shares they sell.
Class A Shares
Class A shares are offered at net asset value "NAV", plus a front-end sales
charge calculated
as follows:
As a % of As a % of Allowed to
Amount of offering net amount Brokers as a %
Investment price invested of offering price
Less than $50,000 4.75% 4.99% 4.00%
$50,000 but less than $100,000 3.75% 3.90% 3.00%
$100,000 but less than $250,000 2.75% 2.83% 2.25%
$250,000 but less than $500,000 1.75% 1.78% 1.25%
$500,000 but less than
$1,000,000 1.00% 1.01% 0.80%
$1,000,000 and over 0.00% 0.00% 0.00%*
*CDI may pay the dealer a finder's fee of up to 0.50% of the amount of
purchase on a purchase of over $1 million. If paid, CDI reserves the right to
recoup any portion of the amount paid to the dealer if the investor redeems
some or all shares within twelve months of the time of purchase.
If paid, front-end sales charges on shares may be reduced or eliminated in
certain cases. See Exhibit A to this prospectus.
This sales charge is paid to CDI, which in turn normally reallows a portion to
your broker/dealer for selling the shares. In some cases, CDI may choose to
reallow up to 90% or more of the sales charge. Dealers who receive 90% or more
of the entire sales charge are considered underwriters under the Securities
Act of 1933.
In addition to the reallowance fee mentioned above, your broker/dealer, or
other financial service firm through which your account is held may 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 under the Fund's Distribution Plan (See
"Distribution Plan").
When you decide to purchase Class A shares, you should also take into
consideration the following:
Larger accounts may qualify for reduced sales charges.
Class A generally pays higher income distributions over time because
you chose to pay the sales charges up front.
Class C Shares
When you decide to purchase Class C shares you should take into consideration
the following:
You do not pay a sales charge at purchase or redemption.
Class C generally has higher expenses.
Class C maximum investment is $1,000,000.
Distribution Plan
Each Fund bears some of the cost of selling its shares under a Distribution
Plan adopted with respect to each of its classes of shares, pursuant to Rule
12b-1. This fee is collected from the Fund by CDI, the Fund's distributor, and
is used to pay broker/dealers and others who service Calvert Group accounts,
as well as expenses associated with the marketing and distribution of Fund
shares, including but not limited to preparation of advertising and sales
literature and the printing and mailing of prospectuses to prospective
shareholders.
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 0.25% of the average daily net asset value of Class A shares,
to pay expenses associated with the distribution and servicing of Class A
shares. (Note: prior to June 1, 1998, the maximum rate was 0.75%.) Amounts
paid by the Fund to CDI under the Class A Distribution Plan are used to pay to
dealers and others, including CDI salespersons who service accounts, service
fees at an annual rate of up to 0.25% of the average daily net asset value of
Class A shares, and to pay CDI for its marketing and distribution expenses,
including, but not limited to, preparation of advertising and sales literature
and the printing and mailing of prospectuses to prospective investors.
Payments pursuant to a Distribution Plan are included in the operating
expenses of the class.
Class B Shares
Class B shares are offered at net asset value, without a front-end sales
charge. With certain exceptions, the Fund will impose a deferred sales charge
at the time of redemption as follows:
Contingent Deferred Sales
Charge As A Percentage Of
Redemption During Net Asset Value At Redemption
1st Year Since Purchase 5%
2nd Year Since Purchase 4%
3rd Year Since Purchase 4%
4th Year Since Purchase 3%
5th Year Since Purchase 2%
6th Year Since Purchase 1%
7th Year Since Purchase and Thereafter None
No deferred sales charge is imposed on amounts redeemed after six years from
purchase. If imposed, the deferred sales charge is deducted from the
redemption proceeds otherwise payable to you. The deferred sales charge is
retained by CDI. See "Calculation of Contingent Deferred Sales charges and
Waiver of Sales Charges" below.
Class B shares that have been outstanding for eight calendar years will
automatically convert to Class A shares, which are subject to a lower
Distribution Plan charge, without imposition of a front-end sales charge or
exchange fee. The Class B shares so converted will no longer be subject to the
higher expenses borne by Class B shares. Because the net asset value per share
of the Class A shares may be higher or lower than that of the Class B shares
at the time of conversion, although the dollar value will be the same, a
shareholder may receive more or less Class A shares than the number of Class B
shares converted. Under current law, it is the Advisor's opinion that such a
conversion will not constitute a taxable event under federal income tax law.
In the event that this ceases to be the case, the Board of Directors will
consider what action, if any, is appropriate and in the best interests of the
Class B shareholders.
Class B Distribution Plan
The Fund has adopted a Distribution Plan with respect to its Class B shares
(the "Class B Distribution Plan"), which provides for payments at an annual
rate of up to 1.00% of the average daily net asset value of Class B shares, to
pay expenses of the distribution of Class B shares. Amounts paid by the Fund
under the Class B Distribution Plan are currently used by CDI to pay others
(1) a commission at the time of purchase of 4% of the value of each share
sold; and/or (2) service fees at an annual rate of 0.25% of the average daily
net asset value of shares sold by such others, beginning in the 13th month
after purchase.
Class C Shares
Class C shares are offered at net asset value, without a front-end sales
charge. With certain exceptions, the Fund may impose a deferred sales charge
of 1.00% on shares redeemed during the first year after purchase. If imposed,
the deferred sales charge is deducted from the redemption proceeds otherwise
payable to you. The deferred sales charge is retained by CDI. See "Calculation
of Contingent Deferred Sales Charges and Waiver of Sales Charges" below.
Class C Distribution Plan
The Fund has adopted a Distribution Plan with respect to its Class C shares
(the "Class C Distribution Plan"), which provides for payments at an annual
rate of up to 1.00% of the average daily net asset value of Class C shares, to
pay expenses of the distribution and servicing of Class C shares. Amounts paid
by the Fund under the Class C Distribution Plan are currently used by CDI to
pay dealers and other selling firms (1) a commission at the time of purchase
of 1.00% of the value of each share sold, and (2) beginning in the 13th month
after purchase, quarterly compensation at an annual rate of up to 0.75%, plus
a service fee as described above under "Class A Distribution Plan," of up to
0.25%.
Calculation of Contingent Deferred Sales Charge and Waiver of Sales Charges
Class B and Class C shares that are redeemed will not be subject to a
contingent deferred charge to the extent that the value of such shares
represents (1) reinvestment of dividends or capital gains distributions, (2)
shares held more than six years (more than one year for Class C) or (3)
capital appreciation of shares redeemed. Any contingent deferred sales charge
is imposed on the net asset value of the shares at the time of redemption or
purchase, whichever is lower. Upon request for redemption, shares not subject
to the contingent deferred sales charge will be redeemed first. Thereafter,
shares held the longest will be the first to be redeemed.
The contingent deferred sales charge on Class B Shares will be waived in the
following circumstances: (1) redemption upon the death or disability of the
shareholder, plan participant, or beneficiary ("disability" shall mean a total
disability as evidenced by a determination by the federal Social Security
Administration); (2) minimum required distributions from retirement plan
accounts for shareholders 70 1/2 and older (with the maximum amount subject to
this waiver being based only upon the shareholder's Calvert retirement
accounts); (3) return of an excess contribution or deferral amounts, pursuant
to sections 408(d)(4) or (5), 401(k)(8), or 402(g)(2), or 401(m)(6) of the
Internal Revenue Code; (4) involuntary redemptions of accounts under
procedures set forth by the Fund's Board of Directors; (5) a single annual
withdrawal under a systematic withdrawal plan of up to 10% per year of the
shareholder's account balance (minimum account balance $50,000 to establish).
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 broker/dealer's
registered representatives, advertising or equipment, or to defray the
expenses of sales contests. Eligible marketing and distribution expenses may
be paid pursuant to the Fund's Rule 12b-1 Distribution Plan and in compliance
with the rules of the NASD.
WHEN YOUR ACCOUNT WILL BE CREDITED
Your purchase will be processed at the next NAV calculated after your order is
received and accepted. All of your purchases must be made in USdollars and
checks must be drawn on US banks. No cash will be accepted. The Funds reserve
the right to suspend the offering of shares for a period for time or to
reflect 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
Funds. When you purchase by check or with Calvert Money Controller, the
purchase will be on hold for up to 10 business days from the date of receipt.
During that period, the proceeds for redemptions against those funds will be
held until the transfer agent is reasonably satisfied that the purchase
payment has been collected. Drafts written on a Money Market Portfolio against
such funds will be returned for uncollected funds. To avoid this collection
period, you can wire federal funds from your bank, which may charge you a fee.
As a convenience, check purchases can be received at Calvert's offices for
overnight mail delivery to the Transfer Agent and will be credited the next
business day, or upon receipt. 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 certain 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.
Tax-Saving Retirement Plans
Calvert Group also offers its shareholders several tax-deferred retirement
plans that allows you to invest for retirement and shelter your investment
income from current taxes. Please contact us if you wish to obtain more
information about the investment options listed below. Minimum deposits may
differ from those listed in the "How to Buy Shares" chart. Also, reduced sales
charges may apply. (See Exhibit A to this prospectus.)
o Traditional and Roth 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.
o Qualified Profit-Sharing and Money Purchase Plans (including 401(k)
Plans): available to self-employed people and their partners,
corporations and their employees, and certain tax-exempt
organizations.
o Simple IRA and Simplified Employee Pension Plan (SEP-IRA): available
to self-employed people and their partners, or to corporations.
o 403(b)(7) Custodial Accounts: available to employees of most
non-profit organizations and public schools and universities.
<PAGE>
OTHER CALVERT GROUP Features
Calvert Information Network
For 24 hour performance and account information call 800.368.2745 or visit
http://www.calvertgroup.com.
You can obtain up to the minute performance and pricing information, verify
account balances, and authorize certain transactions with the convenience of
one phone call, 24 hours a day.
Account Services
By signing up for services when you open your account, you avoid having to
obtain a signature guarantee. If you wish to add services at a later date, a
signature guarantee to verify your signature may be obtained from any bank,
trust company and savings and loan association, credit union, broker/dealer
firm or member of a domestic stock exchange. A notary public cannot provide a
signature guarantee.
Calvert Money Controller
Calvert Money Controller allows you to purchase or sell shares anytime from
anywhere with ease, without the time delay of mailing a check or the added
expense of wiring funds. Use this service to transfer up to $300,000
electronically. Allow one or two business days after you place your request
for the transfer to take place. Moneytransferred to purchase new shares will
be subject to a hold of up to 10 business days before redemption requests will
be honored. Transaction requests must be received by 4 pm ET. You may request
this service on your initial account application. Unless they otherwise
qualify for a waiver, Class B or Class C shares redeemed by Calvert Money
Controller will be subject to the Contingent Deferred Sales Charge.
Telephone Transactions
You may purchase, redeem, or exchange shares, wire funds and use Calvert Money
Controller by telephone if you have pre-authorized service instructions. You
receive this service automatically when you open your account unless you elect
otherwise. For our mutual protection, the Fund, the shareholder servicing
agent and their affiliates use precautions such as verifying shareholder
identity and recording telephone calls to confirm instructions given by phone.
A confirmation statement is sent for most transactions. Please review this
statement and verify the accuracy of your transaction immediately.
Exchanges
Calvert Group of Funds offers a wide variety of investment options that
includes common stock funds, tax-exempt and corporate bond funds, and money
market funds (call your broker or Calvert representative for more
information). We make it easy for you to purchase shares in other funds should
your investment goals change with changes in market conditions. The exchange
privilege offers flexibility, by allowing you to exchange shares on which you
have already paid a sales charge from one mutual fund to another at no
additional charge.
Complete and sign an account application, taking care to register your new
account in the same name and taxpayer identification number as your existing
Calvert account(s). Exchange instructions may then be given by telephone if
telephone redemptions have been authorized and the shares are not in
certificate form.
Before you make an exchange, please note the following:
o Each exchange represents the sale of one Fund and the purchase of
shares of another. Therefore, you could realize a taxable gain or
loss.
o No CDSC is imposed on exchanges of shares subject to a CDSC at the
time of the exchange. The applicable CDSC is imposed at the time the
shares acquired by the exchange are redeemed.
o Shareholders (and those managing multiple accounts) who make two
purchases and two exchange redemptions of shares of the same Fund
during any six month period will be given written notice and may be
prohibited from placing additional investments. This policy does not
prohibit a shareholder from redeeming shares of any Fund, and does
not apply to trades solely among money market funds.
o The Fund reserves the right to terminate or modify the exchange
privilege in the future upon 60 days' written notice.
Combined General Mailings
Join us in our efforts to conserve paper and save on postage.
If you have multiple accounts with Calvert, you may receive combined mailings
of shareholder
information, such as account statements, confirmations of transactions,
prospectuses and semi-annual and annual reports.
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 or a stop payment on a draft. You may be required to pay a fee
for these special services; for example, the fee for stop payments is $25.
If you are purchasing shares of the Fund through a program of services offered
by a broker/dealer or financial institution, you should read the program
materials in conjunction with this Prospectus. Certain features may be
modified in these programs, and administrative charges may be imposed by the
broker/dealer or financial institution for the services rendered.
Minimum Account Balance is $1,000 per Fund, per Class
Please maintain a balance in each of your Fund accounts of at least $1,000. If
the balance in your account falls below the $1,000 minimum during a month, the
account may be closed and the proceeds mailed to the address of record. You
will receive a notice that your account is below the minimum, and will be
closed or charged if the balance is not brought up to the required minimum
amount within 30 days.
DIVIDENDS, Capital Gains 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 short-term capital gains
(treated as dividends for tax purposes) and net long-term capital gains, if
any, are normally paid once a year; however, the Fund does not anticipate
making any such distributions unless available capital loss carryovers have
been used or have expired. Dividends and distribution payments will vary
between classes, dividend payments are anticipated to be generally higher for
Class A shares.
Dividend payment options (available monthly or quarterly)
Dividends and any distributions are automatically reinvested in the same Fund
at NAV (no sales charge), unless you elect to have the dividends of $10 or
more paid in cash (by check or by Calvert Money Controller). Dividends and
distributions from any Calvert Group Fund or Portfolio may be automatically
invested in an identically registered account in any other Calvert Group Fund
at NAV. If reinvested in the same Fund account, new shares will be purchased
at NAV on the reinvestment date, which is generally 1 to 3 days prior to the
payment date. You must notify the Funds in writing to change your payment
options. If you elect to have dividends and/or distributions paid in cash, and
the US Postal Service cannot deliver the check, or if it remains uncashed for
an extended period, it, as well as future dividends and distributions, will be
reinvested in additional shares. No dividends will accrue on amounts
represented by uncashed distribution or redemption checks.
Buying a Dividend
At the time of purchase, the share price of each class of the Fund may reflect
undistributed income, capital gains or unrealized appreciation of securities.
Any income or capital gains from these amounts which are later distributed to
you are fully taxable. On the record date for a distribution, 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
In January, each Fund will mail you Form 1099-DIV indicating the federal tax
status of dividends and any capital gain distributions paid to you during the
past year. Generally, dividends and distributions are taxable 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.
Dividends and distributions are taxable to you regardless of whether they are
taken in cash or reinvested. Dividends, including short-term capital gains,
are taxable as ordinary income. Distributions from long-term capital gains are
taxable as long-term capital gains, regardless of how long you have owned
shares.
For Non-Money Market Funds
You may realize a capital gain or loss when you sell or exchange shares. This
capital gain or loss will be short- or long-term, depending on how long you
have owned the shares which were sold. In January, the Fund will mail you Form
1099-B indicating the total amount of 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.
Other Tax Information
In addition to federal taxes, you may be subject to state or local taxes on
your investment, depending on the laws in your area. You will be notified to
the extent, if any, that dividends reflect interest received from US
government securities. Such dividends may be exempt from certain state income
taxes.
Taxpayer Identification Number
If we do not have your correct Social Security or Taxpayer Identification
Number ("TIN") and a signed certified application or Form W-9, Federal law
requires us to withhold 31% of your reportable dividends, and possibly 31% of
certain redemptions. In addition, you may be subject to a fine. You will also
be prohibited from opening another account by exchange. If this TIN
information is not received within 60 days after your account is established,
your account may be redeemed (closed) at the current NAV on the date of
redemption. Calvert Group reserves the right to reject any new account or any
purchase order for failure to supply a certified TIN.
HOW TO SELL YOUR SHARES
You may redeem all or a portion of your shares on any business day. Your
shares will be redeemed at the next NAV calculated after your redemption
request is received (less any applicable CDSC). The proceeds will normally be
sent to you on the next business day, but if making immediate payment could
adversely affect the Funds, it may take up to seven (7) days. Calvert Money
Controller redemptions generally will be credited to your bank account on the
second business day after your phone call. Remember, investment made by check
or Calvert Money Controller may be subject to a hold before shares can be
redeemed. 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.
Net Asset Value - "NAV"
NAV refers to the worth of one share. NAV is computed by adding the value of
all fund
holdings, plus other assets, deducting liabilities and then dividing the
result by the number of shares outstanding. For Funds with more than one class
of shares, the NAVs of each class will vary daily depending on the number of
shares outstanding for each class.
Fund securities and other assets are valued based on market quotations, except
that securities maturing within 60 days are valued at amortized cost. Money
Market securities are valued according to the "amortized cost" method, which
is intended to stabilize the NAV at $1 per share. If quotations are not
available, securities are valued by a method that the particular Fund's Board
of Trustees/Directors believes accurately reflects fair value.
The NAV is calculated at the close of each business day, which coincides with
the closing of the regular session of the New York Stock Exchange (normal 4 pm
ET). Each Fund is open for business each day the New York Stock Exchange is
open. All purchases will be confirmed and credited to your account in full and
fractional shares (rounded to the nearest 1/1000 of a share).
Follow these suggestions to ensure timely processing of your redemption
request.
By Telephone
You may redeem shares from your account by telephone and have your money
mailed to your address of record or electronically transferred or wired to a
bank you have previously authorized. A charge of $5 may be imposed on wire
transfers of less than $1,000.
Written Requests
Calvert Group, PO Box 419544, Kansas City, MO 64141-6544
Your letter should include your account number and fund and the number of
shares or the
dollar amount you are redeeming. Please provide a daytime telephone number, if
possible, for us to call if we have questions. If the money is being sent to a
new bank, person, or address other than the address of record, your letter
must be signature guaranteed.
The following requirements may also apply to your account:
Type of Registration Requirements
Corporations, Letter of instruction and corporate
resolution, signed by
Associationsperson(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.)
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.
EXHIBIT A - REDUCED SALES CHARGES
(Class A Only)
You may qualify for a reduced sales charge through several purchase plans
available. You must notify the Fund at the time of purchase to take advantage
of the reduced sales charge.
Right of Accumulation
The sales breakpoints are 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: has been in existence for more than six
months, has a purpose other than acquiring shares at a discount, and satisfies
uniform criteria which enable CDI and brokers offering 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 brokers distributing the
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
brokers.
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) and 401(k) of the Code
if, at the time of purchase i) Calvert Group has been notified in writing that
the 403(b), or 401(k) plan has at least 200 eligible employees and
is not sponsored by a K-12 school district: or ii) the cost or current value
of shares a 401(k) 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 or portfolio of the Calvert
Group of Funds sold to:
(i) current or retired Directors, Trustees, or Officers of the Calvert Group
of Funds, employees of Calvert Group, Ltd. and its affiliates, or their family
members; (ii) CSIF Advisory Council Members, directors, officers, and
employees of any subadvisor for the Calvert Group of Funds, employees of
broker/dealers distributing the Fund's shares and immediate family members of
the Council, subadvisor, or broker/dealer, (iii) Purchases made through a
Registered Investment Advisor, (iv) Trust departments of banks or savings
institutions for trust clients of such bank or institution, (v) Purchases
through a broker maintaining an omnibus account with the fund or portfolio,
provided the purchases are made by (a) investment advisors or financial
planners placing trades for their own accounts (or the accounts of their
clients) and who charge a management, consulting, or other fee for their
services; or (b) clients of such investment advisors or financial planners who
place trades for their own accounts if such accounts are linked to the master
account of such investment advisor or financial planner on the books and
records of the broker or agent; or (c) retirement and deferred compensation
plans and trusts, including, but not limited to, those defined in section
401(a) or section 403(b) of the I.R.C., and "rabbi trusts."
Dividends and Capital Gain Distributions from other Calvert Group Funds
You may prearrange to have your dividends and capital gain distributions from
another Calvert Group Fund automatically invested in another account with no
additional sales charge.
Purchases Made at NAV
Except for money market funds, if you make a purchase at NAV, you may exchange
that amount to another Calvert Group 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
June 1, 1998
INVESTMENT ADVISOR TRANSFER AGENT
Calvert-Sloan Advisers, L.L.C. National Financial Data
4550 Montgomery Avenue Services, Inc.
Suite 1000N 1004 Baltimore
Bethesda, Maryland 20814 6th Floor
Kansas City, Missouri 64105
INDEPENDENT ACCOUNTANT PRINCIPAL UNDERWRITER
Coopers & Lybrand, L.L.P. Calvert Distributors, Inc.
250 West Pratt Street 4550 Montgomery Avenue
Baltimore, Maryland 21201 Suite 1000N
Bethesda, Maryland 20814
<PAGE>
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 8
Advertising 9
Purchase and Redemption of Shares 9
Reduced Sales Charges (Class A) 10
Directors and Officers 10
Investment Advisor and Subadvisors 12
Transfer and Shareholder Servicing Agent 13
Method of Distribution 13
Fund Transactions 14
Independent Accountant and Custodians 14
General Information 14
Financial Statements 15
Control Persons and Principal Holders of Securities 15
Appendix 15
<PAGE>
STATEMENT OF ADDITIONAL INFORMATION-June 1, 1998
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 June 1, 1998, which may be
obtained free ofcharge 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.
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.
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.
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INVESTMENT RESTRICTIONS
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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.
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.
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.
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.
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INVESTMENT SELECTION PROCESS
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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.
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DIVIDENDS, DISTRIBUTIONS, AND TAXES
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The Fund declares and pays dividends from net investment
income on an annual basis. Dividends and distributions will differ
between classes. 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, 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.
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NET ASSET VALUE
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The public offering price of the shares of the Fund is the
respective net asset value per share (plus, for Class A shares, the
applicable sales charge). Shares of the Fund are redeemed at the
respective net asset values per share, less any applicable contingent
deferred sales charge ("CDSC"). 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, Martin Luther King 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, 3/31/98
Net asset value per share
($11,613,390/870,414 shares) $13.34
Maximum sales charge, Class A
(4.75% of offering price) 0.63
Offering price per share, Class A $13.97
- -----------------------------------------------------------------------
CALCULATION OF TOTAL RETURN
- -----------------------------------------------------------------------
The Fund may advertise "total return." Total return is
calculated separately for each class of the Fund. Total return is
computed by taking the total number of shares purchased by a
hypothetical $1,000 investment after deducting any applicable 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" as 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" (or "w/o max load") 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.
Total return is historical in nature and is not intended to
indicate future performance. All total return quotations reflect the
deduction of the maximum sales charge, except quotations of "return
without maximum load" (or "w/o max load") which do not deduct sales
charge, and "actual return," which reflect the deduction of the sales
charge only for those periods when a sales charge was actually
imposed. 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. Return for the Funds'
shares for the period from inception (April 12, 1995) to March 31,
1998, are as follows:
Periods Ended Class A Class A
- -----------------------------------------------------------------------
March 31, 1998 w/o Max Load Average Annual
Return
One Year 6.80% 4.16%
Since Inception 4.07% 3.18%
(April 12, 1995)
Class B and C shares were not available during the above periods.
- -----------------------------------------------------------------------
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, November 30, 1997). 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. Certain Class B and Class C
shares may be subject to a contingent deferred sales charge which is
subtracted from the redemption proceeds (see Prospectus, "Calculation
of Contingent Deferred Sales Charges and Waiver of Sales Charges").
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.
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.
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 (CLASS A)
- -----------------------------------------------------------------------
The Fund imposes reduced sales charges for Class A shares in
certain situations in which the Principal Underwriter and the dealers
selling Fund shares may expect to realize significant economies of
scale with respect to such sales. Generally, sales costs do not
increase in proportion to the dollar amount of the shares sold; the
per-dollar transaction cost for a sale to an investor of shares
worth, say, $5,000 is generally much higher than the per-dollar cost
for a sale of shares worth $1,000,000. Thus, the applicable sales
charge declines as a percentage of the dollar amount of shares sold
as the dollar amount increases.
When a shareholder agrees to make purchases of shares over a
period of time totaling a certain dollar amount pursuant to a Letter
of Intent, the Underwriter and selling dealers can expect to realize
the economies of scale applicable to that stated goal amount. Thus
the 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. DOB: May 18, 1955.
Address: 1899 L Street, N.W., 5th Floor, Washington, D.C. 20036.
ROBERT S. BROWNE, Director. Mr. Browne presently serves on
the Advisory Council to Calvert Social Investment Fund. He is the
founder of the Twenty-First Century Foundation, a small
African-American foundation. Mr. Browne was Senior Research Fellow in
Howard University's African Studies and Research Program, and from
1986-1991 he served as Staff Director of the House Banking
Committee's Subcommittee on International Development, Finance, Trade
and Monetary Policy. DOB: August 17, 1924. Address: 214 Tryon Avenue,
Teaneck, NJ 07666.
BERTIE HOWARD, Director. Ms. Howard is the Executive
Director of Africa News Service, Inc., which is a nonprofit,
educational news agency dedicated to encouraging and promoting an
accurate understanding of Africa and its people, through news and
information. Ms. Howard also serves as Executive Director of the Duke
University's Africa and Media Center. DOB: November 8, 1947.
Address: 0-16, Colony Apartments Chapel Hill, NC 27514.
*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 a director of Calvert-Sloan Advisers,
L.L.C., and a trustee/director of each of the investment companies in
the Calvert Group of Funds. Prior to joining Calvert Group, Ms.
Krumsiek served as Senior Vice President of Alliance Capital LP's
Mutual Fund Division. DOB: August 9, 1952.
*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. DOB: 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. DOB: 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 presently is the President of Worldspace Foundation and
was formerly a Senior Policy Advisor at Worldspace, Management, 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. DOB:
June 14, 1924. Address: 4000 Ghardral Avenue, N.W., Apt. 636B,
Washington, D.C. 20016.
*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. DOB: October 18, 1949. Address: New Africa
Advisers, Inc., 103 West Main Street, Durham, North Carolina 27701.
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. DOB: September 15, 1943. Address: Interfaith
Center on Corporate Responsibility, 475 Riverside, Room 566, New
York, N.Y. 10115.
MICHAEL SUDARKASA, Director. Presently, Mr. Sudarkasa is the
Director of International Trade and Investment Promotion Services,
LABAT-ANDERSON INCORPORATED. He was previously President of 21st
Century Africa, Inc. DOB: August 5, 1964. Address: 1418 Woodman
Avenue Silver Spring, MD 20902.
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. DOB: 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. DOB: April 5, 1963. Address: New Africa Advisers, Inc.,
103 West Main Street, Durham, North Carolina 27701.
SUSAN WALKER BENDER, Esq., Assistant Secretary. Ms. Bender
is Associate General Counsel of Calvert Group, Ltd. and an officer of
each of its subsidiaries and Calvert-Sloan Advisers, L.L.C. She is
also an officer of each of the other investment companies in the
Calvert Group of Funds. DOB: January 29, 1959.
JAMILAH SABIR-CALLOWAY, Assistant Secretary. Ms.
Sabir-Calloway is the Vice President and Corporate Secretary of NAA.
Prior to that, Ms. Sabir-Calloway was the Assistant to the Corporate
Secretary of the Sloan Financial Group. DOB: April 19, 1949. Address:
New Africa Advisers, Inc., 103 West Main Street, Durham, North
Carolina 27701.
IVY WAFFORD DUKE, Esq., Assistant Secretary. Ms. Duke is
Assistant Counsel of Calvert Group and an officer of each of its
subsidiaries and Calvert-Sloan Advisers, L.L.C. She is also an
officer of each of the other investment companies in the Calvert
Group of Funds. Prior to working at Calvert Group, Ms. Duke was an
Associate in the Investment Management Group of the Business and
Finance Department at Drinker Biddle & Reath. DOB: September 7, 1968.
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. DOB: November 21,
1957. Address: New Africa Advisers, Inc., 103 West Main Street,
Durham, North Carolina 27701.
LISA CROSSLEY NEWTON, Esq., Assistant Secretary and
Compliance Officer. Ms. Newton is Associate General Counsel of
Calvert Group and an officer of each of its subsidiaries and
Calvert-Sloan Advisers, L.L.C. She is also an officer of each of the
other investment companies in the Calvert Group of Funds. DOB:
December 31, 1961.
KATHERINE STONER, Esq., Assistant Secretary. Ms. Stoner is
Associate General Counsel of Calvert Group and an officer of each of
its subsidiaries and Calvert-Sloan Advisers, L.L.C. She is also an
officer of each of the other investment companies in the Calvert
Group of Funds. DOB: October 21, 1956.
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. DOB: 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. DOB: July 24, 1952.
The address of directors and officers, unless otherwise
noted, is 4550 Montgomery Avenue, Suite 1000N, Bethesda, Maryland
20814. Directors and officers of the Fund as a group own less than 1%
of the Fund's outstanding shares. Directors marked with an *, above,
are "interested persons" of the Fund, under the Investment Company
Act of 1940.
Directors of the Fund not affiliated with the Advisor
currently receive an annual fee of $1000 for service as a member of
the Board of Directors plus $1000 for each Board and Committee
meeting attended. During fiscal 1998, directors of the Fund not
affiliated with the Fund's Advisor received fees and expenses of
$61,888.
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, and net assets.
Director Compensation Table
Director Compensation Table
Fiscal Year 1998 (unaudited numbers)
Name of Directors 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**
Elias Belayneh $6000 $0 $6000
Robert Browne $5000 $0 $5000
Bertie Howard $3500 $0 $3500
Madala Mthembu $4000 $0 $4000
Donald Norland $6000 $1250 $6000
Tim Smith $4000 $0 $4000
Michael Sudarkasa $2750 $0 $2750
Pamela Van Arsdale $4000 $0 $4000
**As of March 31, 1998. The Fund Complex consists of nine (9)
registered investment companies.
- -----------------------------------------------------------------------
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.
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. During fiscal year 1997 the Fund paid
advisory fees of $119,720, and, for fiscal year 1998 the Fund paid
advisory fees of $152,500. 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. For the 1998 fiscal period, the Advisor
reimbursed $90,766.
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 (b) 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. No fees were recaptured during 1998.
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. For fiscal year 1998, CASC received administrative services
fees of $25,417.
- -----------------------------------------------------------------------
TRANSFER AND SHAREHOLDER SERVICING AGENTS
- -----------------------------------------------------------------------
National Financial Data Services, Inc. ("NFDS"), a
subsidiary of State Street Bank & Trust, has been retained by the
Fund to act as transfer agent and dividend disbursing agent. These
responsibilities include: responding to certain shareholder inquiries
and instructions, crediting and debiting shareholder accounts for
purchases and redemptions of Fund shares and confirming such
transactions, and daily updating of shareholder accounts to reflect
declaration and payment of dividends.
Calvert Shareholder Services, Inc., a subsidiary of Calvert
Group, Ltd., and Acacia Mutual, has been retained by the Fund to act
as shareholder servicing agent. Shareholder servicing
responsibilities include responding to shareholder inquiries and
instructions concerning their accounts, entering any telephoned
purchases or redemptions into the NFDS system, maintenance of
broker-dealer data, and preparing and distributing statements to
shareholders regarding their accounts. Calvert Shareholder Services,
Inc. was the sole transfer agent prior to January 1, 1998.
For these services, NFDS and Calvert Shareholder Services,
Inc. receive a fee based on the number of shareholder accounts and
transactions.
- -----------------------------------------------------------------------
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 a distribution fee 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. For the 1998 fiscal year, CDI received net sales
charges of $28,032 for Class A. For Class B and Class C shares, CDI
receives any CDSC paid.
Pursuant to Rule 12b-1 under the Investment Company Act of
1940, the Fund has adopted a Class A, B and C Distribution Plan (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, 0.25%, 1.00%, and 1.00% of the Class A, B, and C
average daily net assets, respectively. For fiscal year 1997, the
Fund Paid Distribution Plan expenses of $59,860 for Class A. 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. For fiscal year 1998, the
Fund Paid Distribution Plan expenses of $76,250 for Class A. Of the
distribution expenses paid in fiscal 1998, $54,736 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.
- -----------------------------------------------------------------------
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
Subadvisor 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.
In fiscal years 1996, 1997, and 1998, no commissions were
paid to any officers or director of the Fund or any of its
affiliates. For the period since inception, April 12, 1995, through
March 31, 1996, aggregate brokerage commissions paid to
broker-dealers were $3,797. In fiscal year 1997 and 1998, aggregate
brokerage commissions paid to broker-dealers were $48,943 and
$102,730, respectively.
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 1997 fiscal year, the turnover rate of the Fund was
23%. For the year ended March 31, 1998, the turnover rate of the Fund
was 74%.
- -----------------------------------------------------------------------
INDEPENDENT ACCOUNTANTS AND CUSTODIANS
- -----------------------------------------------------------------------
Coopers & Lybrand, L.L.P. has been selected by the Board of
Directors to serve as independent accountants for the current fiscal
year. 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 sold
for the Fund.
- -----------------------------------------------------------------------
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 offer three separate classes of shares: Class A, Class B,
and Class C. Each class represents interests in the Fund of
investments but, as further described in the prospectus, each class
is subject to differing sales charges and expenses, which differences
will result in differing net asset values and distributions. Upon any
liquidation of the Fund, shareholders of each class are entitled to
share pro rata in the net assets 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, 1998, 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.
- -----------------------------------------------------------------------
CONTROL PERSONS AND PRINCIPAL HOLDERS OF SECURITIES
- -----------------------------------------------------------------------
As of May 19, 1998, the following shareholder owned of
record 5% or more of Calvert New Africa Fund:
Name and Address % of Ownership
The Public school Retirement System 47.85%
Of The City of St. Louis
#1 Mercantile Center Suite 2607
St. Louis, MO 63101-1615
Florida A&M University Foundation 08.93%
Lee Hall Room 200-G
Tallahasse, FL 32307
- -----------------------------------------------------------------------
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)
<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, 1998, and filed May 27, 1998.
(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 Registrant'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, filed herewith.
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 and Shareholder Servicing Contract,
filed herewith.
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, for Class A, incorporated by reference
to Registrant's Pre-Effective Filing No. 2, filed April 10,
1995; for Class B and C, filed herewith.
16. Schedule for Computation of Performance Quotation,
incorporated by reference to Registrant's Post-Effective
Filing No. 3, filed July 25, 1997.
17. (i) 18f-3 Multiple Class Plan Document, filed herewith.
(ii) Financial Data Schedule, filed herewith.
Exhibits 3 and 12 are omitted because they are inapplicable.
Item 25. Persons Controlled By or Under Common Control With Registrant
Not applicable.
Item 26. Number of Holders of Securities
As of May 22, 1998, there were 930 holders of record of Registrant's
shares.
Item 27. Indemnification
Registrant's By-Laws provide, in summary, that officers, directors,
employees, and agents shall be indemnified by Registrant against liabilities
and expenses incurred by such persons in connection with actions, suits, or
proceedings arising out of their offices or duties of employment, except that
no indemnification can be made to such a person if he has been adjudged liable
of willful misfeasance, bad faith, gross negligence, or reckless disregard of
his duties. In the absence of such an adjudication, the determination of
eligibility for indemnification shall be made by independent counsel in a
written opinion or by the vote of a majority of a quorum of directors who are
neither "interested persons" of Registrant, as that term is defined in Section
2(a)(19) of the Investment Company Act of 1940, nor parties to the proceeding.
Registrant may purchase and maintain liability insurance on behalf of
any officer, director, employee or agent against any liabilities arising from
such status. In this regard, Registrant maintains a Directors & Officers
(Partners) Liability Insurance Policy with Chubb Group of Insurance Companies,
15 Mountain View Road, Warren, New Jersey 07061, providing Registrant with $5
million in directors and officers errors and omissions liability coverage,
plus $3 million in excess directors and officers liability coverage for the
independent directors only. Registrant also maintains an $8 million Investment
Company Blanket Bond (fidelity coverage) issued by ICI Mutual Insurance
Company, P.O. Box 730, Burlington, Vermont 05402.
Item 28. Business and Other Connections of Investment Adviser
Name of Company, Principal
Name Business and Address Capacity
Barbara J. Krumsiek Calvert Variable Series, Inc. Officer
Calvert Municipal Fund, Inc. and
Calvert World Values Fund, Inc. Director
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
First Variable Rate Fund for Officer
Government Income and
Calvert Tax-Free Reserves Trustee
Calvert Social Investment Fund
Calvert Cash Reserves
The Calvert Fund
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Asset Management Co., Inc. Officer
Investment Advisor and
4550 Montgomery Avenue Director
Bethesda, Maryland 20814
----------------
Calvert Group, Ltd. Officer
Holding Company and
4550 Montgomery Avenue Director
Bethesda, Maryland 20814
----------------
Calvert Shareholder Services, Inc. Officer
Transfer Agent and
4550 Montgomery Avenue Director
Bethesda, Maryland 20814
---------------
Calvert Administrative Services Co. Officer
Service Company and
4550 Montgomery Avenue Director
Bethesda, Maryland 20814
---------------
Calvert Distributors, Inc. Officer
Broker-Dealer and
4550 Montgomery Avenue Director
Bethesda, Maryland 20814
---------------
Calvert-Sloan Advisers, LLC Director
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert New World Fund, Inc. Director
Investment Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
--------------
Alliance Capital Mgmt. L.P. Sr. Vice President
Mutual Fund Division Director
1345 Avenue of the Americas
New York, NY 10105
--------------
Ronald M. Wolfsheimer First Variable Rate Fund Officer
for Government Income
Calvert Tax-Free Reserves
Calvert Cash Reserves
Calvert Social Investment Fund
The Calvert Fund
Calvert Variable Series, Inc.
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 Co., Inc. Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Group, Ltd. Officer
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Shareholder Services, Inc. Officer
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Administrative Services Co. Officer
Service Company and
4550 Montgomery Avenue Director
Bethesda, Maryland 20814
---------------
Calvert Distributors, Inc. Director
Broker-Dealer and
4550 Montgomery Avenue Officer
Bethesda, Maryland 20814
---------------
Calvert-Sloan Advisers, LLC Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Reno J. Martini Calvert Asset Management Co., Inc. Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Group, Ltd. Officer
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
First Variable Rate Fund Officer
for Government Income
Calvert Tax-Free Reserves
Calvert Cash Reserves
Calvert Social Investment Fund
The Calvert Fund
Calvert Variable Series, Inc.
Calvert Municipal Fund, Inc.
Calvert World Values Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert New World Fund, Inc. Director
Investment Company and
4550 Montgomery Avenue Officer
Bethesda, Maryland 20814
---------------
Calvert-Sloan Advisers, LLC Director
Investment Advisor and
4550 Montgomery Avenue Officer
Bethesda, Maryland 20814
---------------
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
1730 Third Avenue
New York, New York 10017
------------------
Mechanics and Farmers Bank Director
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
--------------
Justin F. Beckett Sloan Financial Group, Inc. Director,
Holding Company Executive
103 West Main Street, Vice Pres.
4th Floor
Durham, North Carolina 27701
------------------
Sloan Holdings, Inc. Executive
Holding Company Vice Pres.
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 Pres.
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
--------------
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
---------------
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
---------------
William M. Tartikoff Acacia National Life Insurance Officer
Insurance Company
7315 Wisconsin Avenue
Bethesda, Maryland 20814
----------------
First Variable Rate Fund for Officer
Government Income
Calvert Tax-Free Reserves
Calvert Cash Reserves
Calvert Social Investment Fund
The Calvert Fund
Calvert Variable Series, Inc.
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 Co. Inc. Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Shareholder Services, Inc. Officer
Transfer Agent
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Calvert Distributors, Inc. Director
Broker-Dealer and
4550 Montgomery Avenue Officer
Bethesda, Maryland 20814
----------------
Calvert-Sloan Advisers, LLC Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
Susan Walker Bender Calvert Group, Ltd. Officer
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Administrative Services Co. Officer
Service Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Asset Management Co., Inc. Officer
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, LLC Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
First Variable Rate Fund for Officer
Government Income
Calvert Tax-Free Reserves
Calvert Cash Reserves
Calvert Social Investment Fund
The Calvert Fund
Calvert Variable Series, Inc.
Calvert Municipal Fund, Inc.
Calvert World Values Fund, Inc.
Calvert New World Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Katherine Stoner Calvert Group, Ltd. Officer
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Administrative Services Co. Officer
Service Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Asset Management Co., Inc. Officer
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, LLC Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
First Variable Rate Fund for Officer
Government Income
Calvert Tax-Free Reserves
Calvert Cash Reserves
Calvert Social Investment Fund
The Calvert Fund
Calvert Variable Series, Inc.
Calvert Municipal Fund, Inc.
Calvert World Values Fund, Inc.
Calvert New World Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Lisa Crossley Newton Calvert Group, Ltd. Officer
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Administrative Services Co. Officer
Service Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Asset Management Co., Inc. Officer
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, LLC Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
First Variable Rate Fund for Officer
Government Income
Calvert Tax-Free Reserves
Calvert Cash Reserves
Calvert Social Investment Fund
The Calvert Fund
Calvert Variable Series, Inc.
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 Group, Ltd. Officer
Holding Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Administrative Services Co. Officer
Service Company
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Calvert Asset Management Co., Inc. Officer
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, LLC Officer
Investment Advisor
4550 Montgomery Avenue
Bethesda, Maryland 20814
----------------
First Variable Rate Fund for Officer
Government Income
Calvert Tax-Free Reserves
Calvert Cash Reserves
Calvert Social Investment Fund
The Calvert Fund
Calvert Variable Series, Inc.
Calvert Municipal Fund, Inc.
Calvert World Values Fund, Inc.
Calvert New World Fund, Inc.
Investment Companies
4550 Montgomery Avenue
Bethesda, Maryland 20814
---------------
Item 29. Principal Underwriters
(a) Registrant's principal underwriter also underwrites
shares of 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 Calvert Variable Series, Inc.
(b) Positions of Underwriter's Officers and Directors
Name and Principal Position(s) with Position(s) with
Business Address Underwriter Registrant
Barbara J. Krumsiek Director and President President and
Director
Ronald M. Wolfsheimer Director, Senior Vice Treasurer
President and Chief Financial Officer
William M. Tartikoff Director, Senior Vice Vice President and
President and Secretary Secretary
Craig Cloyed Senior Vice President None
Karen Becker Vice President, Operations None
Steve Cohen Vice President None
Geoffrey Ashton Regional Vice President None
Martin Brown Regional Vice President None
Janet Haley Regional Vice President None
Ben Ogbogu Regional Vice President None
Susan Walker Bender Assistant Secretary Assistant Secretary
Katherine Stoner Assistant Secretary Assistant Secretary
Lisa Crossley Newton Assistant Secretary Assistant Secretary
and Compliance Officer
Ivy Wafford Duke Assistant Secretary Assistant Secretary
(c) Inapplicable.
Item 30. Location of Accounts and Records
Ronald M. Wolfsheimer, Treasurer
and
William M. Tartikoff, Assistant Secretary
4550 Montgomery Avenue, Suite 1000N
Bethesda, Maryland 20814
Item 31. Management Services
Not Applicable
Item 32. Undertakings
a) Not Applicable
b) Not Applicable
(c) The Registrant undertakes to furnish to each person to
whom a Prospectus is delivered, a copy of the
Registrant's latest Annual Report to Shareholders, upon
request and without charge.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the Investment
Company Act of 1940, the Registrant certifies that it meets all of the
requirements for effectiveness of this registration statement pursuant to Rule
485(b) under the Securities Act of 1933 and has duly caused this registration
statement to be signed on its behalf by the undersigned, thereto duly
authorized in the City of Bethesda, and State of Maryland, on the 27th day of
May, 1998.
CALVERT NEW WORLD FUND, INC.
By: _____________**______________
Barbara J. Krumsiek
Director
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, this Registration
Statement has been signed below by the following persons in the capacities
indicated on May 27, 1998.
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 Katherine Stoner as Attorney-in-fact. See Exhibit 24.
<PAGE>
EXHIBIT INDEX
Form N-1A
Item No.
Exhibit 1 Underwriting Agreement
Ex-23
24(b)(10) Form of Opinion and Consent of Counsel
Ex-23
24(b)(11) Independent Auditors' Consent
Ex-24 Power of Attorney
Ex-27
24(17) Financial Data Schedules
Exhibit 99.B9 Transfer Agent Contract
Exhibit 99.B9A Shareholder Servicing Contract
Exhibit 99.B15 Class B and C 12b-1 Distribution Plan
Exhibit 99.B17 18f-3 Plan Document
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, and Katherine Stoner, Lisa Crossley, and Ivy Wafford Duke my true and
lawful attorneys, with full power to each of them, to sign for me and in my
name in the appropriate capacities, all registration statements and amendments
filed by the 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 /s/
Date Signature
Barbara J. Krumsiek 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, and Katherine Stoner, Lisa Crossley, and Ivy Wafford Duke my true and
lawful attorneys, with full power to each of them, to sign for me and in my
name in the appropriate capacities, all registration statements and amendments
filed by the 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 /s/
Date Signature
Madala Mthembu 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, and Katherine Stoner, Lisa Crossley, and Ivy Wafford Duke my true and
lawful attorneys, with full power to each of them, to sign for me and in my
name in the appropriate capacities, all registration statements and amendments
filed by the 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 /s/
Date Signature
Tim Smith 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, and Katherine Stoner, Lisa Crossley, and Ivy Wafford Duke my true and
lawful attorneys, with full power to each of them, to sign for me and in my
name in the appropriate capacities, all registration statements and amendments
filed by the 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 /s/
Date Signature
J.S. Calloway 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, and Katherine Stoner, Lisa Crossley, and Ivy Wafford Duke my true and
lawful attorneys, with full power to each of them, to sign for me and in my
name in the appropriate capacities, all registration statements and amendments
filed by the 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 /s/
Date Signature
Katherine Stoner 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, and Katherine Stoner, Lisa Crossley, and Ivy Wafford Duke my true and
lawful attorneys, with full power to each of them, to sign for me and in my
name in the appropriate capacities, all registration statements and amendments
filed by the 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 /s/
Date Signature
William M. Tartikoff 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, and Katherine Stoner, Lisa Crossley, and Ivy Wafford Duke my true and
lawful attorneys, with full power to each of them, to sign for me and in my
name in the appropriate capacities, all registration statements and amendments
filed by the 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 /s/
Date Signature
Barbara J. Krumsiek 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, and Katherine Stoner, Lisa Crossley, and Ivy Wafford Duke my true and
lawful attorneys, with full power to each of them, to sign for me and in my
name in the appropriate capacities, all registration statements and amendments
filed by the 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 /s/
Date Signature
Barbara J. Krumsiek 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, and Katherine Stoner, Lisa Crossley, and Ivy Wafford Duke my
true and lawful attorneys, with full power to each of them, to sign for me and
in my name in the appropriate capacities, all registration statements and
amendments filed by the 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 /s/
Date Signature
Donald Norland Pam Van Arsdale
Witness Name of Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Officer of Calvert New World Fund, Inc.
(The "Fund"), hereby constitute William M. Tartikoff, Lisa Crossley,
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 /s/
Date Signature
Barbara J. Krumsiek Ronald M. Wolfsheimer
Witness Name of Officer
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000934700
<NAME> CALVERT NEW WORLD FUND, INC.
<SERIES>
<NUMBER> 241
<NAME> CALVERT NEW AFRICA FUND
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-START> OCT-01-1997
<PERIOD-END> MAR-31-1998
<INVESTMENTS-AT-COST> 8426
<INVESTMENTS-AT-VALUE> 10691
<RECEIVABLES> 1338
<ASSETS-OTHER> 36
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 12065
<PAYABLE-FOR-SECURITIES> 355
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 97
<TOTAL-LIABILITIES> 452
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 10219
<SHARES-COMMON-STOCK> 870
<SHARES-COMMON-PRIOR> 728
<ACCUMULATED-NII-CURRENT> (66)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (791)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 2251
<NET-ASSETS> 11613
<DIVIDEND-INCOME> 258
<INTEREST-INCOME> 11
<OTHER-INCOME> 0
<EXPENSES-NET> 330
<NET-INVESTMENT-INCOME> (61)
<REALIZED-GAINS-CURRENT> (535)
<APPREC-INCREASE-CURRENT> 1314
<NET-CHANGE-FROM-OPS> 718
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> (114)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2511
<NUMBER-OF-SHARES-REDEEMED> (818)
<SHARES-REINVESTED> 110
<NET-CHANGE-IN-ASSETS> 2407
<ACCUMULATED-NII-PRIOR> (7)
<ACCUMULATED-GAINS-PRIOR> (312)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 153
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 383
<AVERAGE-NET-ASSETS> 10167
<PER-SHARE-NAV-BEGIN> 12.65
<PER-SHARE-NII> (0.070)
<PER-SHARE-GAIN-APPREC> 0.890
<PER-SHARE-DIVIDEND> 0.0
<PER-SHARE-DISTRIBUTIONS> (0.130)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 13.34
<EXPENSE-RATIO> 3.25
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
Exhibit 10
May 27, 1998
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. 4 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. 4 to its Registration Statement.
Sincerely,
/s/ Katherine Stoner
Katherine Stoner
Associate General Counsel
Exhibit 23A
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. 4 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 1,
1998, 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, 1998, which is incorporated by
reference in the Registration Statement. We also consent to the reference to
our firm under the caption "Independent Accountants and Custodians" in the
Statement of Additional Information.
/s/ Coopers & Lybrand L.L.P.
COOPERS & LYBRAND L.L.P.
Baltimore, Maryland
May 26, 1998
DISTRIBUTION AGREEMENT
This DISTRIBUTION AGREEMENT, dated as of February 25, 1998
by and between EACH CALVERT FUND LISTED IN THE SCHEDULE OF FUNDS
ATTACHED HERETO AS SCHEDULE I (each a "Fund" and together the
"Funds"), as such schedule may, from time to time be amended, and
CALVERT DISTRIBUTORS, INC., a Delaware corporation (the
"Distributor").
WHEREAS, each Fund is registered as an open-end investment
company under the Investment Company Act of 1940 (the "1940 Act") and
has registered its shares, including shares of its series portfolios
(the "Series"), for sale to the public under the Securities Act of
1933 (the "1933 Act") and various state securities laws;
WHEREAS, each Fund wishes to retain the Distributor as the
principal underwriter in connection with the offer and sale of shares
of the Series (the "Shares") and to furnish certain other services to
the Series as specified in this Agreement;
WHEREAS, this contract has been approved by the
Trustees/Directors of each Fund in anticipation of the Distributor's
transfer of its rights to receive the Class B Distribution Fees ( as
defined in the Distribution Plan for Class B and C Shares (the
"Distribution Plan")) and/or Class B contingent deferred sales
charges to a financing party in order to raise funds to cover
distribution expenditures; and
WHEREAS, the Distributor is willing to act as principal
underwriter and to furnish such services on the terms and conditions
hereinafter set forth;
NOW, THEREFORE, in consideration of the promises and mutual
covenants herein contained, it is agreed as follows:
1. Each Fund hereby appoints the Distributor as
principal underwriter in connection with the offer and sale of its
Shares. The Distributor shall, as agent for each Fund, subject to
applicable federal and state law and the Declaration of Trust or
Articles of Incorporation, and By-laws of the applicable Fund and in
accordance with the representations in the applicable Fund's
Registration Statement and Prospectus, as such documents may be
amended from time to time: (a) promote the Series; (b) enter into
appropriate dealer agreements with other registered broker-dealers to
further distribution of the Shares; (c) solicit orders for the
purchase of the Shares subject to such terms and conditions as the
applicable Fund may specify; (d) transmit promptly orders and
payments for the purchase of Shares and orders for redemption of
Shares to the applicable Fund's transfer agent; and (e) provide
services agreed upon by the applicable Fund to Series shareholders;
provided, however, that the Distributor may sell no Shares pursuant
to this Agreement until the Distributor is notified that a Fund's
Registration Statement under the 1933 Act, authorizing the sale of
such Shares through the Distributor, has become effective. The
Distributor shall comply with all applicable federal and state laws
and offer the Shares on an agency or "best efforts" basis under which
a Fund shall only issue such Shares as are actually sold.
2. The public offering price of the Shares shall be
the net asset value ("NAV") per share (as determined by the
applicable Fund) of the outstanding Shares of the Series, plus the
applicable sales charge, if any, as set forth in the Fund's then
current Prospectus. Each Fund shall furnish the Distributor with a
statement of each computation of NAV and of the details entering into
such computation.
3. Compensation.
a. Distribution Fee.
i. Class A. In consideration of the Distributor's services
as distributor for the Class A Shares of a Fund, each Fund may pay to
the Distributor the Distribution Fee as set forth in Schedule II to
this Agreement that is payable pursuant to the Fund's Distribution
Plan.
ii. Class B. In consideration of the Distributor's services
as distributor for the Class B Shares of a Fund, each Fund shall pay
to the Distributor (or its designee or transferee) the Distributor's
Allocable Portion of the Distribution Fee; (as set forth in Schedule
II to this Agreement) that is payable pursuant to the Fund's
Distribution Plan in respect of the Class B Shares of a Fund. For
purposes of this Agreement, the Distributor's "Allocable Portion" of
the Distribution Fee shall be 100% of such Distribution Fee unless or
until the Fund uses a principal underwriter other than the
Distributor and thereafter the Allocable Portion shall be the portion
of the Distribution Fee attributable to (i) Class B Shares of a Fund
sold by the Distributor ("Commission Shares"), (ii) Class B Shares of
the Fund issued in connection with the exchange of Commission Shares
of another Fund, and (iii) Class B Shares of the Fund issued in
connection with the reinvestment of dividends and capital gains.
The Distributor's Allocable Portion of the Distribution Fee
and the contingent deferred sales charges arising in respect of Class
B Shares taken into account in computing the Distributor's Allocable
Portion shall be limited under Rule 2830 of the Conduct Rules or
other applicable regulations of the NASD as if the Class B Shares
taken into account in computing the Distributor's Allocable Portion
themselves constituted a separate class of shares of a Fund.
The services rendered by the Distributor for which the
Distributor is entitled to receive the Distributor's Allocable
Portion of the Distribution Fee shall be deemed to have been
completed at the time of the initial purchase of the Commission
Shares (whether of the Fund or another Fund in the Calvert Group of
Funds) taken into account in computing the Distributor's Allocable
Portion. Notwithstanding anything to the contrary in this Agreement,
the Distributor shall be paid its Allocable Portion of the
Distribution Fee notwithstanding the Distributor's termination as
principal underwriter of the Class B Shares of a Fund, or any
termination of this Agreement other than in connection with a
Complete Termination (as defined in the Distribution Plan) of the
Class B Distribution Plan as in effect on the date of this Agreement.
Except as provided in the preceding sentence, a Fund's obligation to
pay the Distribution Fee to the Distributor shall be absolute and
unconditional and shall not be subject to any dispute, offset,
counterclaim or defense whatsoever, (it being understood that nothing
in this sentence shall be deemed a waiver by a Fund of its right
separately to pursue any claims it may have against the Distributor
and to enforce such claims against any assets (other than its rights
to be paid its Allocable Portion of the Distribution Fee and to be
paid the contingent deferred sales charges) of the Distributor.
iii. Class C. In consideration of the Distributor's services
as distributor for the Class C Shares of a Fund, each Fund shall pay
to the Distributor the Distribution Fee as set forth in Schedule II
to this Agreement that is payable pursuant to the Fund's Distribution
Plan.
b. Service Fee. As additional compensation, for Class
A, Class B and Class C Shares of each Series, applicable Funds shall
pay the Distributor a service fee (as that term is defined by the
National Association of Securities Dealers, Inc. ("NASD")) as set
forth in Schedule III to this Agreement that is payable pursuant to
the Fund's Distribution Plan.
c. Front-end Sales Charges. As additional compensation
for the services performed and the expenses assumed by the
Distributor under this Agreement, the Distributor may, in conformity
with the terms and conditions set forth in the then current
Prospectus of each Fund, impose and retain for its own account the
amount of the front-end sales charge, if any, and may reallow a
portion of any front-end sales charge to other broker-dealers, all in
accordance with NASD rules.
d. Contingent Deferred Sales Charge. Each Fund will
pay to the Distributor (or its designee or transferee) in addition to
the fees set forth in Section 3 hereof any contingent deferred sales
charge imposed on redemptions of that Fund's Class B and Class C
Shares upon the terms and conditions set forth in the then current
Prospectus of that Fund. Notwithstanding anything to the contrary in
this Agreement, the Distributor shall be paid such contingent
deferred sales charges in respect of Class B Shares taken into
account in computing the Distributor's Allocable Portion of the
Distribution Fee notwithstanding the Distributor's termination as
principal underwriter of the Class B shares of a Fund or any
termination of this Agreement other than in connection with a
Complete Termination of the Class B Distribution Plan as in effect on
the date of this Agreement. Except as provided in the preceding
sentence, a Fund's obligation to remit such contingent deferred sales
charges to the Distributor shall not be subject to any dispute,
offset, counterclaim or defense whatsoever, it being understood that
nothing in this sentence shall be deemed a waiver by a Fund of its
right separately to pursue any claims it may have against the
Distributor and to enforce such claims against any assets (other than
the Distributor's right to be paid its Allocable Portion of the
Distribution Fee and to be paid the contingent deferred sales
charges) of the Distributor. No Fund will waive any contingent
deferred sales charge except under the circumstances set forth in the
Fund's current Prospectus without the consent of the Distributor (or,
if rights to payment have been transferred, the transferee), which
consent shall not be unreasonably withheld.
4. Payments to Distributor's Transferees. The
Distributor may transfer the right to payments hereunder (but not its
obligations hereunder) in order to raise funds to cover distribution
expenditures, and any such transfer shall be effective upon written
notice from the Distributor to the Fund. In connection with the
foregoing, the Fund is authorized to pay all or a part of the
Distribution Fee and/or contingent deferred sales charges in respect
of Class B Shares directly to such transferee as directed by the
Distributor.
5. Changes in Computation of Fee, etc. As long as the
Class B Distribution Plan is in effect, a Fund shall not change the
manner in which the Class B Distribution Fee is computed (except as
may be required by a change in applicable law or a change in
accounting policy adopted by the Investment Companies Committee of
the AICPA and approved by FASB that results in a determination by a
Fund's independent accountants that any of the sales charges in
respect of such Fund, which are not contingent deferred sales charges
and which are not yet due and payable, must be accounted for by such
Fund as a liability in accordance with GAAP).
6. As used in this Agreement, the term "Registration
Statement" shall mean the registration statement most recently filed
by a Fund with the Securities and Exchange Commission and effective
under the 1933 Act, as such Registration Statement is amended by any
amendments thereto at the time in effect, and the term "Prospectus"
shall mean the form of prospectus filed by a Fund as part of the
Registration Statement.
7. The Distributor shall print and distribute to
prospective investors Prospectuses, and may print and distribute such
other sales literature, reports, forms, and advertisements in
connection with the sale of the Shares as comply with the applicable
provisions of federal and state law. In connection with such sales
and offers of sale, the Distributor shall give only such information
and make only such statements or representations, and require
broker-dealers with whom it enters into dealer agreements to give
only such information and make only such statements or
representations, as are contained in the Prospectus or in information
furnished in writing to the Distributor by a Fund. The Funds shall
not be responsible in any way for any other information, statements
or representations given or made by the Distributor, other
broker-dealers, or the representatives or agents of the Distributor
or such broker-dealers. Except as specifically permitted under the
Distribution Plan under Rule 12b-1 under the 1940 Act, as provided in
paragraph 3 of this Agreement, the Funds shall bear none of the
expenses of the Distributor in connection with its offer and sale of
the Shares.
8. Each Fund agrees at its own expense to register the
Shares with the Securities and Exchange Commission, state and other
regulatory bodies, and to prepare and file from time to time such
Prospectuses, amendments, reports and other documents as may be
necessary to maintain the Registration Statement. Each Fund shall
bear all expenses related to preparing and typesetting its
Prospectus(es) and other materials required by law and such other
expenses, including printing and mailing expenses related to the
Fund's communications with persons who are shareholders of such Fund.
9. Each Fund agrees to indemnify, defend and hold the
Distributor, its several officers and directors, and any person who
controls the Distributor within the meaning of Section 15 of the 1933
Act, free and harmless from and against any and all claims, demands,
liabilities and expenses (including the cost of investigating or
defending such claims, demands or liabilities and any counsel fees
incurred in connection therewith) which the Distributor, its officers
or directors, or any such controlling person may incur, under the
1933 Act or under common law or otherwise, arising out of or based
upon any alleged untrue statement of a material fact contained in its
Registration Statement or Prospectus or arising out of or based upon
any alleged omission to state a material fact required to be stated
in either thereof or necessary to make the statements in either
thereof not misleading, provided that in no event shall anything
contained in this Agreement be construed so as to protect the
Distributor against any liability to a Fund or its shareholders to
which the Distributor would otherwise be subject by reason of willful
misfeasance, bad faith, or gross negligence, in the performance of
its duties, or by reason of its reckless disregard of its obligations
and duties under this Agreement.
10. The Distributor agrees to indemnify, defend and
hold each Fund, their several officers and directors, and any person
who controls a Fund within the meaning of Section 15 of the 1933 Act,
free and harmless from and against any and all claims, demands,
liabilities and expenses (including the cost of investigating or
defending such claims, demands or liabilities and any counsel fees
incurred in connection therewith) which a Fund, its officers or
directors, or any such controlling person may incur, under the 1933
Act or under common law or otherwise, arising out of or based upon
any alleged untrue statement or a material fact contained in
information furnished in writing by the Distributor to the Funds for
use in the Registration Statement or Prospectus(es) or arising out of
or based upon any alleged omission to state a material fact in
connection with such information required to be stated in the
Registration Statement or Prospectus(es) or necessary to make such
information not misleading.
11. Each Fund reserves the right at any time to
withdraw all offerings of the Shares by written notice to the
Distributor at its principal office.
12. The Distributor is an independent contractor and
shall be agent for a Fund only in respect to the offer, sale and
redemption of that Fund's Shares.
13. The services of the Distributor to a Fund under
this Agreement are not to be deemed exclusive, and the Distributor
shall be free to render similar services or other services to others
so long as its services hereunder are not impaired thereby.
14. The Distributor acknowledges that it has received
notice of and accepts the limitations upon the liability of any Fund
organized as a business trust set forth in such Fund's Declaration of
Trust. The Distributor agrees that the obligations of such Funds
hereunder in any case shall be limited to such Funds and to their
assets and that the Distributor shall not seek satisfaction of any
such obligation from the shareholders of such a Fund nor from any
Trustee, officer, employee or agent of such Fund.
15. The Funds shall not use the name of the Distributor
in any Prospectus, sales literature or other material relating to the
Funds in any manner not approved prior thereto by the Distributor;
provided, however, that the Distributor shall approve all uses of its
name which merely refer in accurate terms to its appointment
hereunder or which are required by the Securities and Exchange
Commission or a State Securities Commission; and, provided further,
that in no event shall such approval be unreasonably withheld. The
Distributor shall not use the name of any Fund in any material
relating to the Distributor in any manner not approved prior thereto
by the Fund; provided, however that the Funds shall approve all uses
of their names which merely refer in accurate terms to the
appointment of the Distributor hereunder or which are required by the
Securities and Exchange Commission or a State Securities Commission;
and, provided further, that in no event shall such approval be
unreasonably withheld.
16. The Distributor shall prepare written reports for
the Board of Trustees/Directors of each Fund on a quarterly basis
showing information concerning services provided and expenses
incurred which are related to this Agreement and such other
information as from time to time shall be reasonably requested by a
Fund's Board of Trustees/Directors.
17. As used in this Agreement, the terms "assignment,"
"interested person," and "majority of the outstanding voting
securities" shall have the meaning given to them by Section 2(a) of
the 1940 Act, subject to such exemptions as may be granted by the
Securities and Exchange Commission by any rule, regulation or order;
provided, however that, in order to obtain financing, the Distributor
may assign to a lending institution the payments due to the
Distributor under this Agreement without it constituting an
assignment of the Agreement.
18. Subject to the provisions of sections 19 and 20
below, this Agreement will remain in effect for two years from the
date of is execution and from year to year thereafter, provided that
the Distributor does not notify a Fund in writing at least sixty (60)
days prior to the expiration date in any year that it does not wish
continuance of the Agreement as to such Fund for an additional year.
19. Termination. As to any particular Fund (or Series
thereof), this Agreement shall automatically terminate in the event
of its assignment and may be terminated at any time without the
payment of any penalty by a Fund or by the Distributor on sixty (60)
days' written notice to the other party. A Fund may effect such
termination by a vote of (i) a majority of the Board of
Trustees/Directors of the Fund, (ii) a majority of the
Trustees/Directors who are not interested persons of the Fund, who
are not parties to this Agreement or interested persons of such
parties, and who have no direct or indirect financial interest in the
operation of the Distribution Plan, in this Agreement or in any
agreement related to such Fund's Distribution Plan (the "Rule 12b-1
Trustees/Directors"), or (iii) a majority of the outstanding voting
securities of the relevant Series.
20. This Agreement shall be submitted for renewal to
the Board of Trustees/Directors of each Fund at least annually and
shall continue in effect only so long as specifically approved at
least annually (i) by a majority vote of the Fund's Board of
Trustees/Directors, and (ii) by the vote of the majority of the Rule
12b-1 Trustees/Directors of the Fund, cast in person at a meeting
called for the purpose of voting on such approval.
IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed on the date first above written by their
officers thereunto duly authorized.
Attest: EACH FUND LISTED IN THE
ATTACHED SCHEDULE I
By: /s/ Edwidge Saint-Felix By: /s/ William M.Tartikoff
Vice President
Attest: CALVERT DISTRIBUTORS, INC.
By: /s/ Edwidge Saint-Felix By: /s/ Ronald M. Wolfsheimer
Senior Vice President
<PAGE>
SCHEDULE I
The Calvert Fund
Calvert Tax-Free Reserves
Calvert Municipal Fund
Calvert Social Investment Fund
Calvert World Values Fund
Calvert New World Fund
First Variable Rate Fund
<PAGE>
SCHEDULE II
Fees are expressed as a percentage of average annual daily net
assets, and are payable monthly.
Distribution Fee
Class A* Class B Class C Class I
The Calvert Fund
New Vision Small Cap Fund N/A 0.75 0.75 N/A
Calvert Income Fund 0.25 0.75 0.75 N/A
Calvert Tax-Free Reserves
Money Market Portfolio N/A N/A N/A N/A
Limited-Term Portfolio N/A N/A N/A N/A
Long-Term Portfolio 0.10 0.75 0.75 N/A
California Money Market Port. N/A N/A N/A N/A
Vermont Municipal N/A 0.75 0.75 N/A
Calvert Municipal Fund
National Intermediate Fund N/A 0.75 N/A N/A
California Intermediate Fund N/A 0.75 N/A N/A
Maryland Intermediate Fund N/A 0.75 N/A N/A
Virginia Intermediate Fund N/A 0.75 N/A N/A
Calvert Social Investment Fund
Managed Growth Portfolio 0.10 0.75 0.75 N/A
Equity Portfolio 0.10 0.75 0.75 N/A
Bond Portfolio 0.10 0.75 0.75 N/A
Managed Index Portfolio N/A 0.75 0.75 N/A
Money Market Portfolio N/A N/A N/A N/A
Calvert World Values Fund
Capital Accumulation Fund 0.10 0.75 0.75 N/A
International Equity Fund 0.10 0.75 0.75 N/A
Calvert New World Fund
Calvert New Africa Fund N/A 0.75 0.75 N/A
First Variable Rate Fund
Calvert First Gov't
Money Mkt N/A 0.75 N/A N/A
*Distributor reserves the right to waive all or a portion of the
distribution fee from time to time.
DATED: February 1998
<PAGE>
SCHEDULE III
Fees are expressed as a percentage of average annual daily net assets
and are payable monthly.
Service Fee
Class A* Class B Class C Class I
The Calvert Fund
New Vision Small Cap Fund 0.25 0.25 0.25 N/A
Calvert Income Fund 0.25 0.25 0.25 N/A
Calvert Tax-Free Reserves
Money Market Portfolio N/A N/A N/A N/A
Limited-Term Portfolio N/A N/A N/A N/A
Long-Term Portfolio 0.25 0.25 0.25 N/A
California Money Market Port. N/A N/A N/A N/A
Vermont Municipal N/A 0.25 0.25 N/A
Calvert Municipal Fund
National Intermediate Fund 0.25 0.25 N/A N/A
California Intermediate Fund 0.25 0.25 N/A N/A
Maryland Intermediate Fund 0.25 0.25 N/A N/A
Virginia Intermediate Fund 0.25 0.25 N/A N/A
Calvert Social Investment Fund
Managed Growth Portfolio 0.25** 0.25 0.25 N/A
Equity Portfolio 0.25 0.25 0.25 N/A
Bond Portfolio 0.25 0.25 0.25 N/A
Managed Index Portfolio 0.25 0.25 0.25 N/A
Money Market Portfolio 0.25 N/A N/A N/A
Calvert World Values Fund
Capital Accumulation Fund 0.25 0.25 0.25 N/A
International Equity Fund 0.25 0.25 0.25 N/A
Calvert New World Fund
Calvert New Africa Fund 0.25 0.25 0.25 N/A
First Variable Rate Fund
Calvert First Gov't Money Mkt N/A 0.25 N/A N/A
DATED: February 1998
- -------
* Distributor reserves the right to waive all or a portion of the
service fees from time to time. For money market portfolios, Class A
shall refer to Class O, or if the portfolio does not have multiple
classes, then to the portfolio itself.
** Distributor charges the service fee only on assets in excess of $30
million.
<PAGE>
-3-
THE CALVERT GROUP OF FUNDS
CLASS B and CLASS C DISTRIBUTION PLAN
As approved by the Boards in November 1993
Amended and restated February 1998 Pursuant to Rule 12b-1
Under the Investment Company Act of 1940
This Distribution Plan applies to Class B and Class C in each portfolio of the
Calvert Funds listed in Schedule A (each a "Fund" and together, the "Funds")
and to any future class for which this Distribution Plan has been approved in
accordance with paragraph 2(a) below. For purposes of this Distribution Plan
each series portfolio of a Fund is referred to herein as a "Series" and
together, as the "Series".
As permitted by Rule 12b-1 under the Investment Company Act of 1940 and in
accordance with the terms and conditions of this Plan, as hereinafter set
forth, a Fund may incur certain expenditures to promote itself and further the
distribution of its shares.
1. Payment of Fee
(a) As compensation for certain services performed and expenses assumed
by each Fund's distributor and principal underwriter ("Distributor") each Fund
may pay the Distributor a distribution fee (the "Distribution Fee"). The
Distribution Fee is intended to compensate the Distributor for its marketing
efforts, which include, but are not limited to the following costs:
commissions and other payments advanced to sales personnel and third parties
and related interest costs as permitted by the rules of the National
Association of Securities Dealers, Inc. ("NASD"), printing and mailing
prospectuses, sales literature and other relevant material to other than
current shareholders, advertising and public relations, telemarketing,
marketing-related overhead expenses and other distribution costs. Such
Distribution Fee is in addition to any NASD service fee that may be paid
hereunder and as described at Section 3(b) of the Distribution Agreement
between the respective Funds and the Distributor, or any front-end or deferred
sales charges the Distributor receives from a Fund with respect to sales or
redemption of Fund shares. Total fees paid pursuant to this Plan, including
the Distribution Fee described above, and the NASD service fee, shall not
exceed the rate set forth in the attached Schedule B to this Plan. All
agreements with any person relating to the implementation of this Plan shall
be in writing, and such agreements shall be subject to termination, without
penalty, pursuant to the provisions of paragraph 2(c) of this Plan.
(b) A Fund will pay each person which has acted as principal underwriter
of its Class B shares its Allocable Portion (as such term is defined in the
Distribution Agreement pursuant to which such person acts or acted as
principal underwriter of the Class B Shares (the "Applicable Distribution
Agreement")) of the Distribution Fee in respect of Class B Shares of the
Fund. Such person shall be paid its Allocable Portion of such Distribution
Fees notwithstanding such person's termination as Distributor of the Class B
Shares of the Fund, such payments to be changed or terminated only: (i) as
required by a change in applicable law or a change in accounting policy
adopted by the Investment Companies Committee of the AICPA and approved by
FASB that results in a determination by the Fund's independent accountants
that any asset based sales charges (as that term is defined by the NASD) in
respect of such Fund, and which are not yet due and payable, must be accounted
for by such Fund as a liability in accordance with GAAP, each after the
effective date of this restated Distribution Plan; (ii) if in the sole
discretion of the Board of Trustees/Directors, after due consideration of the
relevant factors considered when adopting and/or amending this Distribution
Plan including the transactions contemplated in that certain Purchase and Sale
Agreement entered into between a Fund's Distributor and the commission
financing entity, the Board of Trustees/Directors determines, subject to its
fiduciary duty, that this Distribution Plan and the payments thereunder must
be changed or terminated, notwithstanding the effect this action might have on
the Fund's ability to offer and sell Class B shares; or (iii) in connection
with a Complete Termination of this Distribution Plan, it being understood
that for this purpose a Complete Termination of this Distribution Plan occurs
only if, as to a Fund or Series, this Distribution Plan is terminated and the
Fund has not adopted any other distribution plan with respect to its Class B
or other substantially similar class of shares. The services rendered by a
Distributor for which that Distributor is entitled to receive its Allocable
Portion of the Distribution Fee shall be deemed to have been completed at the
time of the initial purchase of the Commission Shares (as defined in the
Distribution Agreement) taken into account in computing that Distributor's
Allocable Portion of the Distribution Fee.
The obligation of a Fund to pay the Distribution Fee shall terminate upon the
termination of this Distribution Plan as to such Fund in accordance with the
terms hereof. Except as provided in the preceding paragraph, a Fund's
obligation to pay the Distribution Fee to a Distributor of the Class B Shares
of the Fund shall be absolute and unconditional and shall not be subject to
any dispute, offset, counterclaim or defense whatsoever (it being understood
that nothing in this sentence shall be deemed a waiver by a Fund of its right
separately to pursue any claims it may have against such Distributor and
enforce such claims against any assets (other than its right to be paid its
Allocable Portion of the Distribution Fee and to be paid the contingent
deferred sales charges) of such Distributor).
The right of a Distributor to receive the Distribution Fee, but not the
relevant Distribution Agreement or that Distributor's obligations thereunder,
may be transferred by that Distributor in order to raise funds which may be
useful or necessary to perform its duties as principal underwriter, and any
such transfer shall be effective upon written notice from that Distributor to
the Fund. In connection with the foregoing, each Fund is authorized to pay
all or part of the Distribution Fee directly to such transferee as directed by
that Distributor.
(c) Nothing in this Distribution Plan shall operate or be construed to
limit the extent to which the Fund's Investment Advisor or any other person,
other than the Fund, at its expense apart from the Distribution Plan, may
incur costs and pay expenses associated with the distribution of Fund shares.
2. Effective Date and Term
(a) This Distribution Plan shall become effective as to any Class of any
Series upon approval by majority votes of (i) the Board of the Fund and the
members thereof who are not interested persons within the meaning of Section
2(a)(19) of the Investment Company Act of 1940 and have no direct or indirect
financial interest in the operation of the Distribution Plan or in any
agreements related to the Distribution Plan ("Qualified Trustees/Directors"),
cast in person at a meeting called for the purpose of voting on this
Distribution Plan, and (ii) the outstanding voting securities of the Fund.
(b) This Distribution Plan shall remain in effect for one year from its
adoption date and may continue in effect thereafter if this Distribution Plan
is approved at least annually by a majority vote of the Board of the Fund,
including a majority of the Qualified Trustees/Directors, cast in person at a
meeting called for the purpose of voting on the Distribution Plan.
(c) Subject to paragraph 1(b) above, this Distribution Plan may be
terminated at any time without payment of any penalty by a majority vote of
the Qualified Trustees/Directors or by vote of a majority of the outstanding
voting securities of the Fund, or, with respect to the termination of this
Distribution Plan as to a particular Class of a Portfolio, by a vote of a
majority of the outstanding voting securities of that Class.
(d) The provisions of this Distribution Plan are severable for
each Series or Class, and whenever action is to be taken with respect to this
Distribution Plan, that action must be taken separately for each Series or
Class affected by the matter.
3. Reports
The person authorized to direct the disposition of monies paid or payable by
the Fund pursuant to the Distribution Plan shall provide, on at least a
quarterly basis, a written report to each Fund's Board of the amounts expended
pursuant to this Distribution Plan or any related agreements and the purposes
for which such expenditures were made.
4. Selection of Disinterested Trustees/Directors
While this Distribution Plan is in effect, the selection and nomination of
those Trustees/Directors who are not interested persons of a Fund within the
meaning of Section 2(a)(19) of the Investment Company Act of 1940 shall be
committed to the discretion of the Trustees/Directors then in office who are
not interested persons of the Fund.
5. Effect of Plan
This Distribution Plan shall not obligate the Fund or any other party to enter
into an agreement with any particular person.
6. Amendment
This Distribution Plan may not be amended to increase materially the amount
authorized in paragraph 1 hereof to be spent by a Fund for distribution
without approval by a vote of the majority of the outstanding shares of such
Fund, except that if the amendment relates only to a particular Class of a
Fund, such approval need only be by a vote of the majority of the outstanding
shares of that Class. All material amendments to this Distribution Plan must
be approved by a majority vote of the Board of the Fund, and of the Qualified
Trustees/Directors, cast in person at a meeting called for the purpose of
voting thereon.
SCHEDULE A
The Calvert Fund
Calvert Tax-Free Reserves
Calvert Municipal Fund
Calvert Social Investment Fund
Calvert World Values Fund
Calvert New World Fund
First Variable Rate Fund
SCHEDULE B
The total fees paid by the respective Class of each Series
of a Fund pursuant to this Distribution Plan shall not exceed the
rate, as a percentage of that Class' average annual net assets, set
forth below:
Fund/Series Class B Class C
Distribution Service Distribution Service
Fee Fee Fee Fee
The Calvert Fund
Calvert New Vision
Small Cap Fund 0.75 0.25 0.75 0.25
Calvert Income Fund 0.75 0.25 0.75 0.25
Calvert Tax-Free Reserves
Long-Term 0.75 0.25 0.75 0.25
Vermont Municipal 0.75 0.25 0.75 0.25
Calvert Municipal Fund
National 0.75 0.25 N/A N/A
California 0.75 0.25 N/A N/A
Maryland 0.75 0.25 N/A N/A
Virginia 0.75 0.25 N/A N/A
Calvert Social Investment Fund
Managed Growth 0.75 0.25 0.75 0.25
Equity 0.75 0.25 0.75 0.25
Bond 0.75 0.25 0.75 0.25
Managed Index 0.75 0.25 0.75 0.25
Calvert World Values Fund
International Equity 0.75 0.25 0.75 0.25
Capital Accumulation 0.75 0.25 0.75 0.25
Calvert World Values Fund
Calvert New Africa 0.75 0.25 0.75 0.25
First Variable Rate Fund
Calvert First Gov.
Money Market 0.75 0.25 N/A N/A
Restated Feb. 1998
<PAGE>
THE CALVERT GROUP OF FUNDS
Rule 18f-3 Multiple Class Plan
Approved by the Boards in January 1996
Amended and restated February 1998 Pursuant to Rule 18f-3
Under the Investment Company Act of 1940
Rule 18f-3 under the Investment Company Act of 1940, as
amended (the "1940 Act"), requires that an investment company
desiring to offer multiple classes of shares pursuant to the Rule
adopt a plan setting forth the differences among the classes with
respect to shareholder services, distribution arrangements, expense
allocations and any related conversion features or exchange
privileges. Any material amendment to the plan must be approved by
the investment company's Board of Trustees/Directors, including a
majority of the disinterested Board members, who must find that the
plan is in the best interests of each class individually and the
investment company as a whole.
This Rule 18f-3 Multiple Class Plan ("Plan") shall apply to
those funds in the Calvert Group of Funds listed in Exhibit I (each a
"Fund" and collectively, "Funds") and to any future fund for which
this Plan has been approved in accordance with the above paragraph.
The provisions of this Plan are severable for each Fund or
Series thereof ("Series") or Class, and whenever action is to be
taken with respect to this Plan, that action must be taken separately
for each Fund, Series or Class affected by the matter.
1. Class Designation. A Fund may offer shares
designated Class A, Class B, Class C , Class I, and for certain money
market portfolios, Class O.
2. Differences in Availability. Class A, Class B,
Class C, and Class O shares shall each be available through the same
distribution channels, except that (a) Class B shares may not be
available through some dealers and are not available for purchases of
$500,000 or more, (b) Class B shares of Calvert First Government
Money Market Fund are available only through exchange from Class B or
Class C shares of another Calvert Fund, and (c) Class C shares may
not be available through some dealers and are not available for
purchases of $1 million or more. Class I shares are generally
available only directly from Calvert Group and not through dealers,
and each Class I shareholder must maintain a $1 million minimum
account balance.
3. Differences in Services. The services offered to
shareholders of each Class shall be substantially the same, except
that the Rights of Accumulation, Letters of Intent and Reinvestment
Privileges shall be available only to holders of Class A shares.
Class I purchases and redemptions may only be made by bank wire.
4. Differences in Distribution Arrangements. Class A
shares shall be offered with a front-end sales charge, as such term
is defined in Rule 2830 of the Conduct Rules of the National
Association of Securities Dealers, Inc. The amount of the sales
charge on Class A shares is set forth at Exhibit II. Class A shares
shall be subject to a Distribution Plan adopted pursuant to Rule
12b-1 under the 1940 Act. The amount of the Distribution Plan
expenses for Class A shares, as set forth at Exhibit II, are used to
pay the Fund's principal underwriter for distributing and or
providing services to the Fund's Class A shares. This amount includes
a service fee at the annual rate of .25 of 1% of the value of the
average daily net assets of Class A.
Class B shares shall be offered with a contingent deferred
sales charge ("CDSC") and no front-end sales charge. The amount of
the CDSC on Class B shares is set forth at Exhibit II. Class B shares
shall be subject to a Distribution Plan adopted pursuant to Rule
12b-1 under the 1940 Act. The amount of the Distribution Plan
expenses for Class B shares, as set forth at Exhibit II, are used to
pay each Fund's principal underwriter for distributing and or
providing services to the Fund's Class B shares. This amount includes
a service fee at the annual rate of .25 of 1% of the value of the
average daily net assets of Class B.
Class C shares shall not be subject to a front-end sales
charge, but shall be subject to a 1.00% CDSC if the shares are
redeemed within one year of purchase. Class C shares shall be subject
to a Distribution Plan adopted pursuant to Rule 12b-1 under the 1940
Act. The amount of the Distribution Plan expenses for Class C shares
are set forth at Exhibit II. The Class C Distribution Plan pays each
applicable Fund's principal underwriter for distributing and or
providing services to such Fund's Class C shares. This amount
includes a service fee at the annual rate of .25 of 1% of the value
of the average daily net assets of Class C.
Class I and Class O shares shall be subject to neither a
front-end sales charge, nor a CDSC, nor are they subject to a
Distribution Plan adopted pursuant to Rule 12b-1 under the 1940 Act.
5. Expense Allocation. The following expenses shall be
allocated, to the extent practicable, on a Class-by-Class basis: (a)
Distribution Plan fees; (b) transfer agent fees; (c) administrative
service fees; (d) printing and postage expenses payable by a Fund
relating to preparing and distributing materials, such as proxies,
reports and prospectuses to current shareholders of a specific class;
(e) class specific state notification fees; (f) class specific
litigation or other legal expenses; (g) certain class specific
reimbursement from the Advisor; and (h) certain class specific
contract services (e.g., proxy solicitation).
6. Conversion Features. Class B shares shall be
subject to an automatic conversion feature into Class A shares after
they have been held for that number of years set forth in Exhibit II.
Class A, Class C ,Class I, and Class O are not subject to automatic
conversion.
7. Exchange Privileges. Class A shares shall be
exchangeable only for: (a) Class A shares of other funds managed or
administered by the Calvert Group; (b) shares of funds managed or
administered by the Calvert Group which do not have separate share
classes; and (c) shares of certain other funds specified from time to
time.
Class B shares shall be exchangeable only for: (a) Class B
shares of other funds managed or administered by the Calvert Group;
(b) Class A shares of other funds managed or administered by the
Calvert Group, if the front-end load on the Class A shares is paid at
the time of the exchange; and (c) shares of certain other funds
specified from time to time.
Class C shares shall be exchangeable only for: (a) Class C
shares of other funds managed or administered by the Calvert Group
and Class B shares of Calvert First Government Money Market Fund; (b)
Class A shares of other funds managed or administered by the Calvert
Group, if the front-end load on the Class A shares is paid at the
time of the exchange; and (c) shares of certain other funds specified
from time to time.
Class I shares shall be exchangeable only for: (a) Class I
shares of other funds managed or administered by the Calvert Group;
(b) Class A shares of other funds managed or administered by the
Calvert Group, if the front-end load on the Class A shares is paid at
the time of the exchange; and (c) shares of certain other funds
specified from time to time.
<PAGE>
Exhibit I
The Calvert Fund
Calvert Tax-Free Reserves
Calvert Municipal Fund
Calvert Social Investment Fund
Calvert World Values Fund
Calvert New World Fund
First Variable Rate Fund
<PAGE>
Exhibit II
Calvert Social Investment Fund (CSIF)
Maximum Class A Maximum Maximum
Front-End Sales Class A Class C
Charge 12b-1 Fee 12b-1 Fee
CSIF Managed Growth 4.75% 0.35% 1.00%
CSIF Equity 4.75% 0.35% 1.00%
CSIF Managed Index 4.75% 0.25% 1.00%
CSIF Bond 3.75% 0.35% 1.00%
Class B
Managed Growth,
Equity, and Maximum
Contingent Deferred Sales Charge Managed Index Bond 12b-1 Fee
Shares held less than one year after purchase 5% 4% 1.00%
More than one year but less than two 4% 3%
More than two years but less than three 4% 2%
More than three years but less than four 3% 1%
More than four years but less than five 2%
More than five years but less than six 1%
Converts to Class A after 8 yrs. 6yrs.
<PAGE>
Exhibit II
Calvert Tax-Free Reserves (CTFR)
Maximum Class A Maximum Maximum
Front-End Sales Class A Class C
Charge 12b-1 Fee 12b-1 Fee
CTFR Long-Term 3.75% 0.35% 1.00%
CTFR Vermont 3.75% N/A 1.00%
Class B
Long-Term and Maximum
Contingent Deferred Sales Charge Vermont 12b-1 Fee
Shares held less than one year after purchase 4% 1.00%
More than one year but less than two 3%
More than two years but less than three 2%
More than three years but less than four 1%
Converts to Class A after 6yrs.
<PAGE>
Exhibit II
Calvert Municipal Fund
Maximum Class A Maximum Maximum
Front-End Sales Class A Class C
Charge 12b-1 Fee 12b-1 Fee
National Intermediate 2.75% 0.25% N/A
California Intermediate 2.75% 0.25% N/A
Maryland Intermediate 2.75% 0.25% N/A
Virginia Intermediate 2.75% 0.25% N/A
Class B Maximum
Contingent Deferred Sales Charge CMF 12b-1 Fee
Shares held less than one year after purchase 3% 1.00%
More than one year but less than two 2%
More than two years but less than three 2%
More than three years but less than four 1%
Converts to Class A after 4 yrs.
<PAGE>
Exhibit II
The Calvert Fund
Maximum Class A Maximum Maximum
Front-End Sales Class A Class C
Charge 12b-1 Fee 12b-1 Fee
New Vision Small Cap 4.75% 0.25% 1.00%
Calvert Income Fund 3.75% 0.50% 1.00%
Class B Maximum
Contingent Deferred Sales Charge New Vision Income 12b-1 Fee
Shares held less than one year 5% 4% 1.00%
More than one year but less than two 4% 3%
More than two years but less than three 4% 2%
More than three years but less than four 3% 1%
More than four years but less than five 2%
More than five years but less than six 1%
Converts to Class A after 8 yrs. 6yrs.
<PAGE>
Exhibit II
Calvert World Values Fund
Maximum Class A Maximum Maximum
Front-End Sales Class A Class C
Charge 12b-1 Fee 12b-1 Fee
International Equity 4.75% 0.35% 1.00%
Capital Accumulation 4.75% 0.35% 1.00%
Class B
Maximum
Contingent Deferred Sales Charge CWVF 12b-1 Fee
Shares held less than one year after purchase 5% 1.00%
More than one year but less than two 4%
More than two years but less than three 4%
More than three years but less than four 3%
More than four years but less than five 2%
More than five years but less than six 1%
Converts to Class A after 8 yrs.
February 1998
Lgl Shr/Agreements/New UW/Rule 18f-3 Plan
<PAGE>
Exhibit II
Calvert New World Fund
Maximum Class A Maximum Maximum
Front-End Sales Class A Class C
Charge 12b-1 Fee 12b-1 Fee
Calvert New Africa 4.75% 0.25% 1.00%
Class B Maximum
Contingent Deferred Sales Charge New Africa 12b-1 Fee
Shares held less than one year after purchase 5% 1.00%
More than one year but less than two 4%
More than two years but less than three 4%
More than three years but less than four 3%
More than four years but less than five 2%
More than five years but less than six 1%
Converts to Class A after 8 yrs.
<PAGE>
Exhibit II
First Variable Rate Fund
Maximum Class A Maximum Maximum
Front-End Sales Class A Class C
Charge 12b-1 Fee 12b-1 Fee
First Gov. Money Market N/A N/A N/A
Class B Maximum
Contingent Deferred Sales Charge 12b-1 Fee
CDSC of original Class B Fund purchased is applied upon
redemption from Class B of First Government Money Market 1.00%
Conversion period of original Class B Fund purchased is applied.
<PAGE>
SERVICING AGREEMENT
This Agency Agreement, effective January 1, 1998, by and
between Calvert Shareholder Services, Inc., a Delaware corporation
having its principal place of business in Bethesda, Maryland
("CSS"), and registered investment companies sponsored by Calvert
Group, Ltd. and its subsidiaries and set forth on Schedule A
("Calvert Group Funds" or "Funds"). The Funds have entered into a
transfer agency and service agreement with the State Street Bank and
Trust of Boston, Massachusetts ("State Street") ("State Street
Agreement").
1. Appointments. The Funds hereby appoints CSS as
servicing agent, agent and shareholder servicing agent for the
Funds, and CSS hereby accepts such appointment and agrees to perform
those duties in accordance with the terms and conditions set forth
in this Agreement.
2. Documentation. The Funds will furnish CSS with all
documents, certificates, contracts, forms, and opinions which CSS,
in its discretion, deems necessary or appropriate in connection with
the proper performance of its duties under this Agreement.
3. Services to be Performed. CSS will be responsible
for telephone servicing functions, system interface with State
Street and oversight of State Street's administering and performing
their duties pursuant to the State Street Agreement. The details of
the operating standards and procedures to be followed will be
determined from time to time by agreement between CSS and the Funds.
4. Recordkeeping and Other Information. CSS will,
commencing on the effective date of this Agreement, to the extent
necessary create and maintain all necessary shareholder accounting
records in accordance with all applicable laws, rules and
regulations, including but not limited to records required by
Section 31(a) of the Investment Company Act of 1940, as amended (the
"1940 Act"), and the rules thereunder, as amended from time to time.
All such records will be the property of the Fund and will be
available for inspection and use by such Fund.
5. Audit, Inspection and Visitation. CSS will make
available during regular business hours all records and other data
created and maintained pursuant to this Agreement for reasonable
audit and inspection by the SEC, a Fund or any person retained by a
Fund.
6. Compensation. The Funds will compensate CSS on a
monthly basis for the services performed pursuant to this Agreement,
at the rate of compensation set forth in Schedule A. Out of pocket
expenses incurred by CSS and not included in Schedule A will be
reimbursed to CSS by the Fund, as appropriate; such expenses may
include, but are not limited to, special forms and postage for
mailing the forms. These charges will be payable in full upon
receipt of a billing invoice. In lieu of reimbursing CSS for these
expenses, any Fund may, in its discretion, directly pay the expenses.
7. Use of Names. No Fund will not use the name of CSS
in any prospectus, sales literature or other material relating to
the Fund in any manner without prior approval by CSS; provided,
however, that CSS will approve all uses of its name that merely
refer in accurate terms to its appointment under this Agreement or
that are required by the SEC or a State Securities Commission; and,
provided, further, that in no event will approval be unreasonably
withheld.
8. Security. CSS represents and warrants that, to the
best of its knowledge, the various procedures and systems that CSS
proposes to implement with regard to safeguarding from loss or
damage attributable to fire, theft or any other cause (including
provision for twenty-four hour a day restricted access) the Fund's,
records and other data and CSS's records, data, equipment,
facilities and other property used in the performance of its
obligations under this Agreement are adequate and that it will
implement them in the manner proposed and make such changes from
time to time as in its judgment are required for the secure
performance of obligations under this Agreement.
9. Limitation of Liability. Each Fund will indemnify
and hold CSS harmless against any losses, claims, damages,
liabilities or expenses (including reasonable counsel fees and
expenses) resulting from any claim, demand, action or suit brought
by any person (including a shareholder naming such Fund as a party)
other than such Fund not resulting from CSS's bad faith, willful
misfeasance, reckless disregard of its obligations and duties, or
negligence arising out of, or in connection with, CSS's performance
of its obligations under this Agreement.
To the extent CSS has not acted with bad faith, willful
misfeasance, reckless disregard of its obligations and duties, or
gross negligence, each Fund will also indemnify and hold CSS
harmless against any losses, claims, damages, liabilities or
expenses (including reasonable counsel fees and expenses) resulting
from any claim, demand, action or suit resulting from the negligence
of such Fund, or CSS's acting upon any instructions reasonably
believed by it to have been executed or communicated by any person
duly authorized by such Fund, or as a result of CSS's acting in
reliance upon advice reasonably believed by CSS to have been given
by counsel for the Fund, or as a result of CSS's acting in reliance
upon any instrument reasonably believed by it to have been genuine
and signed, countersigned or executed by the proper person.
CSS's liability for any and all claims of any kind,
including negligence, for any loss or damage arising out of,
connected with, or resulting from this Agreement, or from the
performance or breach thereof, or from the design, development,
lease, repair, maintenance, operation or use of data processing
systems and the maintenance of a Funds' shareholder account records
as provided for by this Agreement will in the aggregate not exceed
the total of CSS's compensation hereunder for the six months
immediately preceding the discovery of the circumstances giving rise
to such liability.
In no event will CSS be liable for indirect, special, or
consequential damages (even if CSS has been advised of the
possibility of such damages) arising from the obligations assumed
hereunder and the services provided for by this Agreement, including
but not limited to lost profits, loss of use of the shareholder
accounting system, cost of capital, cost of substitute facilities,
programs or services, downtime costs, or claims of shareholders for
such damage.
10. Limitation of Liability of the Fund. CSS
acknowledges that it accepts the limitations upon the liability of
the Funds. CSS agrees that each Fund's obligations under this
Agreement in any case will be limited to such Fund and to its assets
and that CSS will not seek satisfaction of any obligation from the
shareholders of the Fund nor from any director, trustee, officer,
employee or agent of such Fund.
11. Force Majeure. CSS will not be liable for delays or
errors occurring by reason of circumstances beyond its control,
including but not limited to acts of civil or military authority,
national emergencies, work stoppages, fire, flood, catastrophe, acts
of God, insurrection, war, riot, or failure of communication or
power supply. In the event of equipment breakdowns beyond its
control, CSS will take reasonable steps to minimize service
interruptions but will have no liability with respect thereto.
12. Amendments. CSS and each Fund will regularly
consult with each other regarding CSS's performance of its
obligations under this Agreement. Any change in a Fund's
registration statements under the Securities Act of 1933, as
amended, or the 1940 Act or in the forms relating to any plan,
program or service offered by the current prospectus which would
require a change in CSS's obligations under this Agreement will be
subject to CSS's approval, which will not be unreasonably withheld.
Neither this Agreement nor any of its provisions may be changed,
waived, discharged, or terminated orally, but only by written
instrument which will make specific reference to this Agreement and
which will be signed by the party against which enforcement of such
change, waiver, discharge or termination is sought.
13. Termination. This Agreement will continue in effect
until January 1, 1999, and thereafter as the parties may mutually
agree; provided, however, that this Agreement may be terminated at
any time by either party upon at least sixty days' prior written
notice to the other party; and provided further that this Agreement
may be terminated immediately at any time for cause either by any
Fund or CSS in the event that such cause remains unremedied for no
less than ninety days after receipt of written specification of such
cause. Any such termination will not affect the rights and
obligations of the parties under Paragraphs 9 and 10 hereof. In the
event that a Fund designates a successor to any of CSS's obligations
hereunder, CSS will, at the expense and direction of such Fund,
transfer to such successor all relevant books, records and other
data of such Fund established or maintained by CSS under this
Agreement.
15. Miscellaneous. Each party agrees to perform such
further acts and execute such further documents as are necessary to
effectuate the purposes of this Agreement. This Agreement will be
construed and enforced in accordance with and governed by the laws
of the State of Maryland. The captions in this Agreement are
included for convenience only and in no way define or delimit any of
the provisions hereof or otherwise affect their construction or
effect.
IN WITNESS WHEREOF, the parties have duly executed this
Agreement as of the day and year first above written.
CALVERT GROUP FUNDS
By:/s/ William M. Tartikoff
CALVERT SHAREHOLDER SERVICES, INC.
By:/s/ Ronald M. Wolfsheimer
<PAGE>
SERVICING AGREEMENT
SCHEDULE A
For its services under this Servicing Agreement, Calvert
Shareholder Services, Inc., is entitled to receive from the Calvert
Funds (Except Acacia Capital Corporation) fees as set forth below:
Annual
Transaction
Fund and Portfolio Account Fee* Fee
FIRST VARIABLE RATE FUND
First Variable Rate Fund (d/b/a Calvert First $11.59 $.84
Government Money Market)
Calvert Florida Municipal Intermediate Fund 2.23 .26
CALVERT TAX-FREE RESERVES
Money Market 13.35 .97
Limited-Term 3.37 .42
Long-Term 2.67 .31
California Money Market 12.74 .93
Vermont Municipal 3.40 .39
CALVERT MUNICIPAL FUND, INC
California Intermediate 3.48 .40
National Intermediate 3.31 .38
Maryland Intermediate 4.64 .53
Michigan Intermediate 3.88 .44
New York Intermediate 4.23 .48
Virginia Intermediate 3.35 .38
Arizona Intermediate 2.10 .24
Pennsylvania Intermediate 2.82 .32
THE CALVERT FUND
Income 4.22 .48
New Vision Small Cap 5.90 .67
CALVERT SOCIAL INVESTMENT FUND
Money Market 11.92 .87
Bond 4.85 .55
Managed Growth 4.63 .72
Equity 5.24 .60
CALVERT WORLD VALUES FUND, INC.
International Equity 5.36 .61
Capital Accumulation 6.26 .72
CALVERT NEW WORLD FUND
New Africa Fund 3.91 .45
* Account fees are charged monthly based on the highest number of
non-zero balance accounts outstanding during the month.
Acacia Capital Corporation fee is as follows:
.03% (three basis points) on the first $500 million of average
net assets and .02% (two basis points) over $500 million of average
net assets, minus the fees paid by Acacia Capital Corporation to
State Street Bank and Trust pursuant to the State Street Agreement
(except for out of pocket expenses).
<PAGE>
SERVICING AGREEMENT
This Agency Agreement, effective January 1, 1998, by and
between Calvert Shareholder Services, Inc., a Delaware corporation
having its principal place of business in Bethesda, Maryland
("CSS"), and registered investment companies sponsored by Calvert
Group, Ltd. and its subsidiaries and set forth on Schedule A
("Calvert Group Funds" or "Funds"). The Funds have entered into a
transfer agency and service agreement with the State Street Bank and
Trust of Boston, Massachusetts ("State Street") ("State Street
Agreement").
1. Appointments. The Funds hereby appoints CSS as
servicing agent, agent and shareholder servicing agent for the
Funds, and CSS hereby accepts such appointment and agrees to perform
those duties in accordance with the terms and conditions set forth
in this Agreement.
2. Documentation. The Funds will furnish CSS with all
documents, certificates, contracts, forms, and opinions which CSS,
in its discretion, deems necessary or appropriate in connection with
the proper performance of its duties under this Agreement.
3. Services to be Performed. CSS will be responsible
for telephone servicing functions, system interface with State
Street and oversight of State Street's administering and performing
their duties pursuant to the State Street Agreement. The details of
the operating standards and procedures to be followed will be
determined from time to time by agreement between CSS and the Funds.
4. Recordkeeping and Other Information. CSS will,
commencing on the effective date of this Agreement, to the extent
necessary create and maintain all necessary shareholder accounting
records in accordance with all applicable laws, rules and
regulations, including but not limited to records required by
Section 31(a) of the Investment Company Act of 1940, as amended (the
"1940 Act"), and the rules thereunder, as amended from time to time.
All such records will be the property of the Fund and will be
available for inspection and use by such Fund.
5. Audit, Inspection and Visitation. CSS will make
available during regular business hours all records and other data
created and maintained pursuant to this Agreement for reasonable
audit and inspection by the SEC, a Fund or any person retained by a
Fund.
6. Compensation. The Funds will compensate CSS on a
monthly basis for the services performed pursuant to this Agreement,
at the rate of compensation set forth in Schedule A. Out of pocket
expenses incurred by CSS and not included in Schedule A will be
reimbursed to CSS by the Fund, as appropriate; such expenses may
include, but are not limited to, special forms and postage for
mailing the forms. These charges will be payable in full upon
receipt of a billing invoice. In lieu of reimbursing CSS for these
expenses, any Fund may, in its discretion, directly pay the expenses.
7. Use of Names. No Fund will not use the name of CSS
in any prospectus, sales literature or other material relating to
the Fund in any manner without prior approval by CSS; provided,
however, that CSS will approve all uses of its name that merely
refer in accurate terms to its appointment under this Agreement or
that are required by the SEC or a State Securities Commission; and,
provided, further, that in no event will approval be unreasonably
withheld.
8. Security. CSS represents and warrants that, to the
best of its knowledge, the various procedures and systems that CSS
proposes to implement with regard to safeguarding from loss or
damage attributable to fire, theft or any other cause (including
provision for twenty-four hour a day restricted access) the Fund's,
records and other data and CSS's records, data, equipment,
facilities and other property used in the performance of its
obligations under this Agreement are adequate and that it will
implement them in the manner proposed and make such changes from
time to time as in its judgment are required for the secure
performance of obligations under this Agreement.
9. Limitation of Liability. Each Fund will indemnify
and hold CSS harmless against any losses, claims, damages,
liabilities or expenses (including reasonable counsel fees and
expenses) resulting from any claim, demand, action or suit brought
by any person (including a shareholder naming such Fund as a party)
other than such Fund not resulting from CSS's bad faith, willful
misfeasance, reckless disregard of its obligations and duties, or
negligence arising out of, or in connection with, CSS's performance
of its obligations under this Agreement.
To the extent CSS has not acted with bad faith, willful
misfeasance, reckless disregard of its obligations and duties, or
gross negligence, each Fund will also indemnify and hold CSS
harmless against any losses, claims, damages, liabilities or
expenses (including reasonable counsel fees and expenses) resulting
from any claim, demand, action or suit resulting from the negligence
of such Fund, or CSS's acting upon any instructions reasonably
believed by it to have been executed or communicated by any person
duly authorized by such Fund, or as a result of CSS's acting in
reliance upon advice reasonably believed by CSS to have been given
by counsel for the Fund, or as a result of CSS's acting in reliance
upon any instrument reasonably believed by it to have been genuine
and signed, countersigned or executed by the proper person.
CSS's liability for any and all claims of any kind,
including negligence, for any loss or damage arising out of,
connected with, or resulting from this Agreement, or from the
performance or breach thereof, or from the design, development,
lease, repair, maintenance, operation or use of data processing
systems and the maintenance of a Funds' shareholder account records
as provided for by this Agreement will in the aggregate not exceed
the total of CSS's compensation hereunder for the six months
immediately preceding the discovery of the circumstances giving rise
to such liability.
In no event will CSS be liable for indirect, special, or
consequential damages (even if CSS has been advised of the
possibility of such damages) arising from the obligations assumed
hereunder and the services provided for by this Agreement, including
but not limited to lost profits, loss of use of the shareholder
accounting system, cost of capital, cost of substitute facilities,
programs or services, downtime costs, or claims of shareholders for
such damage.
10. Limitation of Liability of the Fund. CSS
acknowledges that it accepts the limitations upon the liability of
the Funds. CSS agrees that each Fund's obligations under this
Agreement in any case will be limited to such Fund and to its assets
and that CSS will not seek satisfaction of any obligation from the
shareholders of the Fund nor from any director, trustee, officer,
employee or agent of such Fund.
11. Force Majeure. CSS will not be liable for delays or
errors occurring by reason of circumstances beyond its control,
including but not limited to acts of civil or military authority,
national emergencies, work stoppages, fire, flood, catastrophe, acts
of God, insurrection, war, riot, or failure of communication or
power supply. In the event of equipment breakdowns beyond its
control, CSS will take reasonable steps to minimize service
interruptions but will have no liability with respect thereto.
12. Amendments. CSS and each Fund will regularly
consult with each other regarding CSS's performance of its
obligations under this Agreement. Any change in a Fund's
registration statements under the Securities Act of 1933, as
amended, or the 1940 Act or in the forms relating to any plan,
program or service offered by the current prospectus which would
require a change in CSS's obligations under this Agreement will be
subject to CSS's approval, which will not be unreasonably withheld.
Neither this Agreement nor any of its provisions may be changed,
waived, discharged, or terminated orally, but only by written
instrument which will make specific reference to this Agreement and
which will be signed by the party against which enforcement of such
change, waiver, discharge or termination is sought.
13. Termination. This Agreement will continue in effect
until January 1, 1999, and thereafter as the parties may mutually
agree; provided, however, that this Agreement may be terminated at
any time by either party upon at least sixty days' prior written
notice to the other party; and provided further that this Agreement
may be terminated immediately at any time for cause either by any
Fund or CSS in the event that such cause remains unremedied for no
less than ninety days after receipt of written specification of such
cause. Any such termination will not affect the rights and
obligations of the parties under Paragraphs 9 and 10 hereof. In the
event that a Fund designates a successor to any of CSS's obligations
hereunder, CSS will, at the expense and direction of such Fund,
transfer to such successor all relevant books, records and other
data of such Fund established or maintained by CSS under this
Agreement.
15. Miscellaneous. Each party agrees to perform such
further acts and execute such further documents as are necessary to
effectuate the purposes of this Agreement. This Agreement will be
construed and enforced in accordance with and governed by the laws
of the State of Maryland. The captions in this Agreement are
included for convenience only and in no way define or delimit any of
the provisions hereof or otherwise affect their construction or
effect.
IN WITNESS WHEREOF, the parties have duly executed this
Agreement as of the day and year first above written.
CALVERT GROUP FUNDS
By:/s/ William M. Tartikoff
CALVERT SHAREHOLDER SERVICES, INC.
By:/s/ Ronald M. Wolfsheimer
<PAGE>
SERVICING AGREEMENT
SCHEDULE A
For its services under this Servicing Agreement, Calvert
Shareholder Services, Inc., is entitled to receive from the Calvert
Funds (Except Acacia Capital Corporation) fees as set forth below:
Annual
Transaction
Fund and Portfolio Account Fee* Fee
FIRST VARIABLE RATE FUND
First Variable Rate Fund (d/b/a Calvert First $11.59 $.84
Government Money Market)
Calvert Florida Municipal Intermediate Fund 2.23 .26
CALVERT TAX-FREE RESERVES
Money Market 13.35 .97
Limited-Term 3.37 .42
Long-Term 2.67 .31
California Money Market 12.74 .93
Vermont Municipal 3.40 .39
CALVERT MUNICIPAL FUND, INC
California Intermediate 3.48 .40
National Intermediate 3.31 .38
Maryland Intermediate 4.64 .53
Michigan Intermediate 3.88 .44
New York Intermediate 4.23 .48
Virginia Intermediate 3.35 .38
Arizona Intermediate 2.10 .24
Pennsylvania Intermediate 2.82 .32
THE CALVERT FUND
Income 4.22 .48
New Vision Small Cap 5.90 .67
CALVERT SOCIAL INVESTMENT FUND
Money Market 11.92 .87
Bond 4.85 .55
Managed Growth 4.63 .72
Equity 5.24 .60
CALVERT WORLD VALUES FUND, INC.
International Equity 5.36 .61
Capital Accumulation 6.26 .72
CALVERT NEW WORLD FUND
New Africa Fund 3.91 .45
* Account fees are charged monthly based on the highest number of
non-zero balance accounts outstanding during the month.
Acacia Capital Corporation fee is as follows:
.03% (three basis points) on the first $500 million of average
net assets and .02% (two basis points) over $500 million of average
net assets, minus the fees paid by Acacia Capital Corporation to
State Street Bank and Trust pursuant to the State Street Agreement
(except for out of pocket expenses).
<PAGE>
