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. 6 XX
AND/OR
REGISTRATION STATEMENT UNDER THE
INVESTMENT ACT OF 1940
AMENDMENT NO. 9 XX
CALVERT NEW WORLD FUND, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN CHARTER)
4550 MONTGOMERY AVENUE
SUITE 1000N
BETHESDA, MARYLAND 20814
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)
REGISTRANT'S TELEPHONE NUMBER: (301) 951-4881
WILLIAM M. TARTIKOFF, ESQ.
4550 MONTGOMERY AVENUE
SUITE 1000N
BETHESDA, MARYLAND 20814
(NAME AND ADDRESS OF AGENT FOR SERVICE)
IT IS PROPOSED THAT THIS FILING WILL BECOME EFFECTIVE
IMMEDIATELY UPON FILING XX ON JULY 31, 1999
PURSUANT TO PARAGRAPH (B) PURSUANT TO PARAGRAPH (B)
ON 60 DAYS AFTER FILING ON (DATE)
PURSUANT TO PARAGRAPH (A) PURSUANT TO PARAGRAPH (A)
OF RULE 485.
<PAGE>
PROSPECTUS
July 31, 1999
CALVERT NEW AFRICA FUND
About the Fund
2 Investment Objective, Strategy, Past Performance
5 Fees and Expenses
7 Investment Practices and Risks
About Your Investment
14 About the Advisor
14 Subadvisors and Portfolio Management Team
15 Advisory Fees
16 How to Buy Shares
16 Choosing a Share Class
18 Calculation of CDSC/Waiver
19 Distribution and Service Fees
20 Account Application
20 Important - How Shares are Priced
21 When Your Account Will be Credited
21 Other Calvert Group Features
(Exchanges, Minimum Account Balance, etc.)
24 Dividends, Capital Gains and Taxes
25 How to Sell Shares
27 Financial Highlights
28 Exhibit A- Reduced Sales Charges (Class A)
30 Exhibit B- Service Fees and
Other Arrangements with Dealers
These securities have not been approved or disapproved by the Securities and
Exchange Commission (SEC) or any State Securities Commission, nor has the SEC or
any State Securities Commission passed on the accuracy or adequacy of this
prospectus. Any representation to the contrary is a criminal offense.
<PAGE>
Calvert New Africa Fund
Advisor: Calvert-Sloan Advisers, L.L.C.
Subadvisors: New Africa Advisers, Inc.
Calvert Asset Management Company, Inc.
Objective
The Fund seeks to achieve capital appreciation over time through investments
primarily in the emerging market of equity and equity-linked securities and
fixed-income securities of African and African-related companies. This objective
may be changed by the Fund's Board of Directors without shareholder approval.
Principal Investment Strategies
The Fund typically invests at least 65% of its assets in equity securities of
African and African-related companies. The Fund defines African and
African-related companies as those that are:
- - organized under the laws of an African country,
- - derive at least half of their revenues in Africa,
- - have at least half of their assets located in Africa, or
- - have securities traded principally on a stock exchange in Africa.
The Fund also buys equity securities of multinational companies that do
business in Africa.
The Fund may invest up to 15% of its net assets in direct investments. These
investments are generally privately placed venture capital investments in small,
untried enterprises. Because they are not traded on an exchange and thus have no
readily available market price, direct investments are valued under the
direction and control of the Fund's Board.
New Africa Advisers, Inc., applies a "top-down"analysis for country allocation,
based on economic analysis and fundamentals relative to the applicable index and
then weights those countries accordingly, giving greater weight to countries it
expects to have favorable economic conditions, and less to those it expects to
have unfavorable economic conditions. After country allocations have been
determined, it applies a "bottom-up" analysis, identifying companies which have
an above market average prospective growth rate, but sell at below average
valuations.
PRINCIPAL RISKS
The Fund is designed for aggressive, long-term investors who are willing to
accept above-average risk in order to seek a higher rate of return over time.
Investments in African and African-related issuers involve risk factors and
special considerations not normally associated with investments in United
States issuers.
You could lose money on your investment in the Fund, or the Fund could
underperform for any of the following reasons:
- - The stock markets in African countries go down
- - The individual stocks in the Fund do not perform as well as expected
- - Foreign currency values go down versus the U.S. dollar
- - African securities markets are subject to political and economic
uncertainty, caused by political transitions, and the possibility of
exchange controls and significant currency fluctuations.
- - African securities markets are small compared to the U.S. stock market.
They can be very illiquid and have high price volatility.
- - The Fund is non-diversified. Compared to other funds, the Fund may invest
more of its assets in a smaller number of companies. Gains or losses on a
single stock may have greater impact on the Fund.
- - Direct investments involve a high degree of risk - they are subject to
liquidity, information, and if a debt investment, credit risk.
An investment in the Fund is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency.
Fund Performance
The following bar chart and table show the Fund's annual returns and its
long-term performance. The chart and table provide some indication of the risks
of investing in the Fund. The chart shows how the performance of the Class A
shares has varied from year to year. The table compares the Fund's performance
over time to that of the Morgan Stanley Capital International (MSCI) South
Africa Index, a widely recognized, unmanaged index of common stock prices. It
also shows the Fund's returns compared to the Lipper Emerging Market Fund Index,
a composite index of the annual return of mutual funds that have an investment
goal similar to that of the Fund. The Fund's past performance does not
necessarily indicate how the Fund will perform in the future.
The return for the Fund's other classes of shares offered by this prospectus
will differ from the Class A returns shown in the bar chart, depending upon the
expenses of that Class. The bar chart does not reflect any sales charge that you
may be required to pay upon purchase or redemption of the Fund's shares. Any
sales charge will reduce your return. The average total return table shows
returns with the maximum sales charge deducted. No sales charge has been applied
to the indices used for comparison in the table.
[BAR CHART]
Calvert New Africa
Year-by-year Total Return
(Class A return at NAV)
1996 -11.55%
1997 4.74%
1998 -11.64%
Best Quarter (of periods shown) Q1 '98 18.67%
Worst Quarter (of periods shown) Q3 '98 -14.23%
1999 Year-to-date (through 6.30.99) -10.66%
Average Annual Total Returns (as of 12.31.98)
(with maximum sales charge deducted)
1 year 5 years 10 years
Calvert New Africa Class A1 -15.83% N/A N/A
Calvert New Africa Class B N/A N/A N/A
Calvert New Africa Class C N/A N/A N/A
MSCI South Africa Index -27.56% N/A N/A
Lipper Emerging Market
Fund Index -26.87% N/A N/A
1 Since inception (4/30/95) Calvert New Africa Class A -5.95%;
MSCI South Africa Index -12.49%;
Lipper Emerging Market Fund Index -7.53%.
The month end date of 4/30/95 is used for comparison purposes only,
actual Fund inception is 4/12/95.
FEES AND EXPENSES
This table describes the fees and expenses that you may pay if you buy and hold
shares of the Fund.
Class A Class B Class C
Shareholder fees
(paid directly from your account)
Maximum sales charge (load)
imposed on purchases 4.75% None None
(as a percentage of offering price)
Maximum deferred sales charge (load)
(as a percentage of purchase or None1 5.00% 2 1.00%3
redemption proceeds, whichever is lower)
Annual fund operating expenses
(deducted from Fund assets)
Management fees4 1.75% 1.75% 1.75%
Distribution and service (12b-1) fees .25% 1.00% 1.00%
Other expenses 2.20% 34.80% 186.81%
Total annual fund operating expenses5 4.20% 37.55% 189.56%
Fee waiver and/or expense reimbursement6 .92% 33.52% 185.53%
Net expenses 3.28% 4.03% 4.03%
Example
This example is intended to help you compare the cost of investing in the Fund
with the cost of investing in other mutual funds. The example assumes that:
- - You invest $10,000 in the Fund for the time periods indicated;
- - Your investment has a 5% return each year; and
- - The Fund's operating expenses remain the same.
Although your actual costs may be higher or lower, under these assumptions your
costs would be:
Class Number of Years Investment is Held
1 Year 3 Years 5 Years 10 Years
A 790 1,611 2,444 4,587
B (with redemption) 905 2,196 3,331 5,774
B (no redemption) 405 1,796 3,131 5,774
C (with redemption) 505 1,796 3,131 6,239
C (no redemption) 405 1,796 3,131 6,239
Annual Fund Operating Expenses
Expenses are based on expenses for the Fund's most recent fiscal year, unless
otherwise indicated. Management fees include the Subadvisory fees paid by the
Advisor to the Subadvisors, and the administrative fee paid by the Fund to
Calvert Administrative Services Company, an affiliate of Calvert Asset
Management Company, Inc., one of the Subadvisors.
The Fund's Rule 12b-1 fees include an asset-based sales charge. Thus, long-term
shareholders in the Fund may pay more in total sales charges than the economic
equivalent of the maximum front-end sales charge permitted by rules of the
National Association of Securities Dealers, Inc. (the "NASD").
Notes to Fees and Expenses Table
1 Purchases of Class A shares for accounts with $1 million or more are not
subject to front-end sales charges, but may be subject to a 1.0% contingent
deferred sales charge on shares redeemed within 1 year of purchase.
(See "How to Buy Shares" - Class A.)
2 A contingent deferred sales charge is imposed on the proceeds of Class B
shares redeemed within 6 years, subject to certain exceptions. The charge is 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 year, 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."
3 A contingent deferred sales charge of 1% is imposed on the proceeds of
Class C shares redeemed within one year. The charge is a percentage of net
asset value at the time of purchase or redemption, whichever is less. See
"Calculation of Contingent Deferred Sales Charge."
4 The Management fee has been restated to reflect changes approved by share
holders in early 1999. See "About Calvert Group - Advisory Fees."
5 Expenses have been restated to reflect expenses expected to be incurred in
1999.
6 Calvert-Sloan has agreed to waive fees and or reimburse expenses (net of
any expense offset arrangements) through July 31, 2000. The contractual
expense cap is shown as "Net expenses," this is the maximum amount that
may be charged to the Fund through July 31, 2000. Calvert-Sloan has
further agreed to waive fees and reimburse expenses (net of any expense
offset arrangements) for Class B shares at 7.03% through July 31, 2007, and
for Class C shares at 7.03% through July 31, 2009.
INVESTMENT PRACTICES AND RISKS
Direct Investments
The Fund may invest up to 15% of its net assets in Direct Investments. Direct
Investments are privately placed investments in small companies. The Advisor
intends to focus the Direct Investments in South Africa. 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 privatizations (a government-owned or
state-controlled entity that is sold to the private sector).
In each Direct Investment, the Fund will seek to ally itself with strong
management, as determined by New Africa Advisers, Inc., 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 Direct Investment will be
expected to make a meaningful investment in its company, to the extent possible.
The Fund will aim to enhance the financial performance and value of portfolio
companies by sitting on the board of directors of each Direct Investment, under
the supervision of the Fund Board of Directors and to the extent allowed by law,
and by offering general business and management advice to the management of the
Direct Investment.
The Advisor will try to structure Direct Investments to have a reasonable exit
opportunity - a way out of the investment (since there is no ready market).
Various exit strategies may be used: sale of the business to a third party or
to management; a public offering; or a refinancing of the capital structure.
The holding period for a Direct Investment is expected to range from 5 to 7
years.
There is no regular market for Direct Investments; permission from the
government regulatory authorities is usually necessary for each investment.
While Direct Investments offer the opportunity for significant capital gains,
such investments involve a degree of business and financial risks that can
result in losses. They are also illiquid. Risks include new management,
substantial variations in operating results from period to period, and the need
for substantial additional capital to support expansion or to achieve or
maintain a competitive position. These companies 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.
African Economies
The economies of individual African countries may differ from the US economy in
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. 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.
The South African economy is substantially more developed than that of other
African countries. The Advisor expects a significant portion of the Fund's
assets to be invested in South Africa. The Fund's performance may be
significantly affected by the economic, social, and political developments in
South Africa.
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 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. These factors 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. During periods of price volatility and low 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.
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. Restrictions on capital flows may be imposed. Losses and
other expenses may be incurred in converting between various currencies in
connection 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.
Commissions on foreign stock exchanges are generally higher than on US
exchanges. There is generally less government supervision and regulation of
foreign stock exchanges, brokers and companies than in the US.
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.
There is also the possibility of adverse change in investment or exchange
control regulations, nationalization, 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 the event of
expropriation, nationalization, or other confiscation, the Fund could lose its
entire investment in the country involved.
Investment Practices and Related Risks Table
On the following pages are brief descriptions of the principal investments and
techniques, summarized earlier, along with certain additional investment
techniques and their risks. For each of the investment practices listed, the
table below shows the Fund's limitations as a percentage of its assets and the
principal types of risk involved. (See the pages following the table for a
description of the types of risks). Numbers in this table show maximum allowable
amount only; for actual usage, consult the Fund's annual/semi-annual reports.
Key to Table
J Fund currently uses
q Permitted, but not typically used
(% of assets allowable, if restricted)
8 Not permitted
xN Allowed up to x% of Fund's net assets
xT Allowed up to x% of Fund's total assets
Investment Practices
Active Trading Strategy/Turnover involves selling a security soon after
purchase. An active trading strategy causes a fund to have higher portfolio
turnover compared to other funds and higher transaction costs, such as
commissions and custodian and settlement fees, and may increase a Fund's tax
liability.
Risks: Opportunity, Market and Transaction.
Temporary Defensive Positions.
During adverse market, economic or political conditions, the Fund may depart
from its principal investment strategies by increasing its investment in US
government securities and other short-term interest-bearing securities. During
times of any temporary defensive positions, a Fund may not be able to achieve
its investment objective. Risks: Opportunity.
Conventional Securities
Foreign Securities. Securities issued by companies located outside the US and/or
traded primarily on a foreign exchange. Risks: Market, Currency, Transaction,
Liquidity, Information and Political.
Emerging Market. Securities issued by companies located in those countries whose
economies and capital markets are not as developed as those of more
industrialized nations. Risks: Market, Currency, Transaction, Liquidity,
Information, and Political.
Investment Practices and Related Risks (cont'd)
Small Cap Stocks. Investing in small companies involves greater risk than with
more established companies. Small cap stock prices are more volatile and the
companies often have limited product lines, markets, financial resources, and
management experience. Risks: Market, Liquidity and Information.
Investment grade bonds. Bonds rated BBB/Baa or higher or comparable unrated
bonds.
Risks: Interest Rate, Market and Credit.
Below-investment grade bonds. Bonds rated below BBB/Baa or comparable unrated
bonds are considered junk bonds. They are subject to greater credit risk than
investment grade bonds. Risks: Credit, Market, Interest Rate, Liquidity and
Information.
Unrated debt securities. Bonds that have not been rated by a recognized rating
agency; the Advisor has determined the credit quality based on its own research.
Risks: Credit, Market, Interest Rate, Liquidity and Information.
Illiquid securities. Securities which cannot be readily sold because there is no
active market.
Risks: Liquidity, Market and Transaction.
Leveraged Derivative Instruments
Currency contracts. Forward contracts involving the right or obligation to buy
or sell a given amount of foreign currency at a specified price and future date.
Risks: Currency, Leverage, Correlation, Liquidity and Opportunity.
Options on securities and indices. Contracts giving the holder the right but not
the obligation to purchase or sell a security (or the cash value, in the case of
an option on an index) at a specified price within a specified time. In the case
of selling (writing) options, the Fund will write call options only if it
already owns the security (if it is "covered"). Risks: Interest Rate, Currency,
Market, Leverage, Correlation, Liquidity, Credit and Opportunity.
Futures contract. Agreement to buy or sell a specific amount of a commodity or
financial instrument at a particular price on a specific future date. Risks:
Interest Rate, Currency, Market, Leverage, Correlation, Liquidity and
Opportunity.
1 20% limit applies to all fixed-income, all of which may be below
investment grade.
2 Based on net premium payments.
The Fund has additional investment policies and restrictions (for example,
repurchase agreements, borrowing, pledging, and reverse repurchase agreements,
and securities lending.) These policies and restrictions are discussed in the
SAI.
Types of Investment Risk
Correlation risk
This occurs when a Fund "hedges"- uses one investment to offset the Fund's
position in another. If the two investments do not behave in relation to one
another the way Fund managers expect them to, then unexpected or undesired
results may occur. For example, a hedge may eliminate or reduce gains as well as
offset losses.
Credit risk
The risk that the issuer of a security or the counterparty to an investment
contract may default or become unable to pay its obligations when due.
Currency risk
Currency risk occurs when a Fund buys, sells or holds a security denominated in
foreign currency. Foreign currencies "float" in value against the US dollar.
Adverse changes in foreign currency values can cause investment losses when a
Fund's investments are converted to US dollars.
Information risk
The risk that information about a security or issuer or the market might not be
available, complete, accurate or comparable.
Interest rate risk
The risk that changes in interest rates will adversely affect the value of an
investor's securities. When interest rates rise, the value of fixed-income
securities will generally fall. Conversely, a drop in interest rates will
generally cause an increase in the value of fixed-income securities. Longer-term
securities and zero coupon/"stripped" coupon securities ("strips") are
subject to greater interest rate risk.
Leverage risk
The risk that occurs in some securities or techniques which tend to magnify the
effect of small changes in an index or a market. This can result in a loss that
exceeds the amount actually invested.
Liquidity risk
The risk that occurs when investments cannot be readily sold. A Fund may have to
accept a less-than-desirable price to complete the sale of an illiquid security
or may not be able to sell it at all.
Market risk
The risk that securities prices in a market, a sector or an industry will
fluctuate, and that such movements might reduce an investment's value.
Opportunity risk
The risk of missing out on an investment opportunity because the assets needed
to take advantage of it are committed to less advantageous investments or
strategies.
Political risk
The risk that may occur with foreign investments, and means that the value of an
investment may be adversely affected by nationalization, taxation, war,
government instability or other economic or political actions or factors.
Transaction risk
The risk that a Fund may be delayed or unable to settle a transaction or that
commissions and settlement expenses may be higher than usual.
Social Philosophy - Calvert's Vision and Journey
The 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 an
investor, 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
and through the ownership of publicly traded securities, seek to catalyze
economic empowerment and improve the quality of life for the people of Africa.
About The Advisor
Calvert-Sloan Advisers, L.L.C., 4550 Montgomery Avenue, Suite 1000N, Bethesda,
MD 20814 is the Fund's Advisor. The Advisor provides the Fund with investment
supervision and management 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. Calvert Group, Ltd. and Sloan Holdings, Inc.,
jointly own Calvert-Sloan Advisers, L.L.C.
Subadvisors and Portfolio Management Team
New Africa Advisers, Inc. ("NAA"), 103 West Main Street, Durham, NC 27701 is one
of the Fund's Subadvisors. It is responsible for asset allocation and selection
of the specific investments for the Fund. NAA also has offices in Johannesburg,
South Africa. Sloan Financial Group, Inc ("SFG") wholly owns NAA.
SFG, 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, SFG
contains two investment management subsidiaries, NCM Capital Management Group,
Inc., and NAA. SFG subsidiaries currently manage 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.
Investment selections for the Fund are made by a team, led by Maceo K. Sloan,
Chairman of NAA. Mr. Sloan's 25-year career in the investment management
industry began at North Carolina Mutual Life Insurance Company where he held
positions including Investment Analyst, Treasurer, Vice President, and Chief
Investment Officer. Presently, he serves as Chairman, President, and Chief
Executive Officer of SFG and NCM Capital Management Group, Inc. He is a regular
panelist on the PBS program Wall Street Week in Review with Louis Rukeyser and
has been a panelist and has chaired several conferences concerning investment
opportunities in South Africa.
Calvert Asset Management Company ("CAMCO"), 4550 Montgomery Avenue, Suite 1000N,
Bethesda, MD 20814 is the Fund's other Subadvisor. CAMCO manages the US dollar
portion of the Fund's cash reserves. Calvert Group Ltd. wholly owns CAMCO. CAMCO
has been managing mutual funds since 1976. CAMCO is the investment advisor for
over 25 mutual funds, including the first and largest family of socially
screened funds. As of December 31, 1998, CAMCO had $6 billion in assets
under management.
CAMCO uses a team approach to its cash management of the Fund. Reno J.
Martini, Senior Vice President and Chief Investment Officer, heads this team and
oversees the investment management of all Calvert Funds for CAMCO. Mr. Martini
has over 18 years of experience in the investment industry and has been the head
of CAMCO's asset management team since 1985.
The Fund has obtained an exemptive order from the Securities and Exchange
Commission to permit the Fund, pursuant to approval by the Board of Directors,
to enter into and materially amend contracts with the Fund's Subadvisors without
shareholder approval. See "Investment Advisor and Subadvisor" in the SAI for
further details.
Advisory Fees
The annual advisory fee paid to Calvert-Sloan Advisers, L.L.C. by the Fund for
the most recent fiscal year was 1.52% of the Fund's average daily net assets.
This was comprised of a 1.50% base fee and a 0.02% performance fee adjustment.
The advisory agreement was changed by a vote of shareholders in March 1999 to
eliminate the performance fee adjustment.
A Word About the Year 2000 (Y2K) and Our Computer Systems
Like other mutual funds, Calvert-Sloan Advisers, L.L.C. and its service
providers use computer systems for all aspects of our business - processing
shareholder and fund transactions, fund accounting, executing trades, and
pricing securities, just to name a few. Many current software programs cannot
distinguish between the year 2000 and the year 1900. This can cause problems
with retirement plan distributions, dividend payment software, transaction
software, and numerous other areas that could impact the Fund. Calvert Group has
been reviewing all of its computer systems for Y2K compliance. Although, at this
time, there can be no assurance that there will be no negative impact on the
Fund, the Advisor, the underwriter, transfer agent and custodian have advised
the Fund that they have been actively working on any necessary changes to their
computer systems to prepare for Y2K and expect that their systems, and those of
their outside service providers, will be adapted in time for that event. For
more information, please visit our website at www.calvertgroup.com.
HOW TO BUY SHARES
Getting Started - Before You Open an Account
You have a few decisions to make before you open an account in a mutual fund.
First, decide which fund or funds best suits your needs and your goals.
Second, decide what kind of account you want to open. Calvert offers individual,
joint, trust, Uniform Gifts/Transfers to Minor Accounts, Traditional, Education
and Roth IRAs, Qualified Profit-Sharing and Money Purchase Plans, SIMPLE IRAs,
SEP-IRAs, 403(b)(7) accounts, and several other types of accounts. Minimum
investments are lower for the retirement plans.
Then decide which class of shares is best for you.
You should make this decision carefully, based on:
- the amount you wish to invest;
- the length of time you plan to keep the investment; and
- the Class expenses.
Choosing a Share Class
The Fund in this prospectus offers three different Classes (Class A, B, or C).
This chart shows the difference in the Classes and the general types of
investors who may be interested in each Class:
Class A:
Front-End Sales
Charge
For all investors, particularly those investing a substantial amount who plan to
hold the shares for a long period of time.
Sales charge on each purchase of 4.75% or less, depending on the amount you
invest.
Class B:
Deferred Sales
Charge for 6 years
For investors who plan to hold the shares at least 6 years. The expenses of this
class are higher than Class A, because of the 12b-1 fee.
No sales charge on each purchase, but if you sell your shares within 6 years,
you will pay a deferred sales charge of 5% or less on shares you sell.
Class C:
Deferred Sales
Charge for 1 year
For investors who are investing for at least one year, but less than six years.
The expenses of this Class are higher than Class A, because of the 12b-1 fee.
No sales charge on each purchase, but if you sell shares within 1 year, then you
will pay a deferred sales charge of 1% at that time.
Class A:
Front-End Sales
Charge
Class A shares have an annual 12b-1 fee of up to 0.25%.
Class A shares have lower annual expenses due to a lower 12b-1 fee.
Purchases of Class A shares at NAV for accounts with $1,000,000 or more will be
subject to a 1.0% deferred sales charge for 1 year.
Class B:
Deferred Sales
Charge for 6 years
Class B shares have an annual 12b-1 fee of 1.00%.
Your shares will automatically convert to Class A shares after 8 years, reducing
your future annual expenses.
If you are investing more than $250,000, you should consider investing in Class
A
or C.
Class C:
Deferred Sales
Charge for 1 year
Class C shares have an annual 12b-1 fee of 1.00%.
Class C shares have higher annual expenses than Class A and there is no
automatic conversion to Class A.
If you are investing more than $1,000,000, you should invest in Class A.
Class A
If you choose Class A, you will pay a sales charge at the time of each purchase.
This table shows the charges both as a percentage of offering price and as a
percentage of the amount you invest. The term "offering price" means the NAV per
share plus the front-end sales charge. If you invest more, the sales charge will
be lower. For example, if you invest more than $50,000, or if your
cumulative purchases or the value in your account is more than $50,000,4 then
the sales charge is reduced to 3.75%.
Your investment in Sales Charge % % of Amt.
Class A shares of offering price Invested
Less than $50,000 4.75% 4.99%
$50,000 but less than $100,000 3.75% 3.90%
$100,000 but less than $250,000 2.75% 2.83%
$250,000 but less than $500,000 1.75% 1.78%
$500,000 but less than $1,000,000 1.00% 1.01%
$1,000,000 and over None* None*
4 This is called "Rights of Accumulation." The sales charge is calculated by
taking into account not only the dollar amount of the new purchase of
shares, but also the higher of cost or current value of shares you have
previously purchased in Calvert Group Funds that impose sales charges. This
automatically applies to your account for each new purchase of Class A shares.
* Purchases of Class A shares at NAV for accounts with $1,000,000 or more
are subject to a one year CDSC of 1.00%. See the "Calculation of
Contingent Deferred Sales Charge and Waiver of Sales Charges."
The Class A front-end sales charge may be waived for certain purchases or
investors, such as participants in certain group retirement plans or other
qualified groups and clients of registered investment advisers. For details on
these and other purchases that may qualify for a reduced sales charge, see
Exhibit A.
Class B
If you choose Class B, there is no front-end sales charge like Class A, but if
you sell the shares within the first 6 years, you will have to pay a "contingent
deferred" sales charge ("CDSC"). Keep in mind that the longer you hold the
shares, the less you will have to pay in deferred sales charges.
Time Since Purchase CDSC %
1st year 5%
2nd year 4%
3rd year 4%
4th year 3%
5th year 2%
6th year 1%
After 6 years None
Calculation of Contingent Deferred Sales Charge and Waiver of Sales
Charges
The CDSC will not be charged on shares you received as dividends or from capital
gains distributions or on any capital appreciation (gain in the value) of shares
that are sold.
Shares that are not subject to the CDSC will be redeemed first, followed by
shares you have held the longest. The CDSC is calculated by determining the
share value at both the time of purchase and redemption and then multiplying
whichever value is less by the percentage that applies as shown above. If you
choose to sell only part of your shares, the capital appreciation for those
shares only is included in the calculation, rather than the capital appreciation
for the entire account.
The CDSC on Class B Shares will be waived in the following circumstances:
- - Redemption upon the death or disability of the shareholder, plan
participant, or beneficiary.1
- - Minimum required distributions from retirement plan accounts for
shareholders 701/2 and older.2
- - The return of an excess contribution or deferral amounts, pursuant to
sections 408(d)(4) or (5), 401(k)(8), 402(g)(2), or 401(m)(6) of the
Internal Revenue Code.
- - Involuntary redemptions of accounts under procedures set forth by the
Fund's Board of Directors.
- - A single annual withdrawal under a systematic withdrawal plan of up to 10%
of the shareholder's account balance.3
1 "Disability" means a total disability as evidenced by a determination by
the federal Social Security Administration.
2 The maximum amount subject to this waiver is based only upon the
shareholder's Calvert Group retirement accounts.
3 This systematic withdrawal plan requires a minimum account balance of
$50,000 to be established.
Class C
If you choose Class C, there is no front-end sales charge like Class A, but if
you sell the shares within the first year, you will have to pay a 1% CDSC. Class
C may be a good choice for you if you plan to buy shares and hold them for at
least 1 year, but not more than five or six years.
Distribution and Service Fees
The Fund has adopted a plan under Rule 12b-1 of the Investment Company Act of
1940 that allows the Fund to pay distribution fees for the sale and distribution
of its shares. The distribution plan also pays service fees to persons (such as
your financial professional) for services provided to shareholders. Because
these fees are paid out of a Fund's assets on an ongoing basis, over time, these
fees will increase the cost of your investment and may cost you more than paying
other types of sales charges. Please see Exhibit B for more service fee
information.
The table below shows the maximum annual percentage payable under the
distribution plan, and the amount actually paid by the Fund for the most recent
fiscal year. The fees are based on average daily net assets of the particular
Class.
Maximum Payable under Plan/Amount Actually Paid
Class A* Class B Class C
0.25%/0.35% 1.00%/1.00% 1.00%/1.00%
* The maximum payable under the Class A Distribution Plan was 0.75%
prior to June 1, 1998.
NEXT STEP - ACCOUNT APPLICATION
Complete and sign an application for each new account. When multiple classes of
shares are offered, please specify which class you wish to purchase. For more
information, contact your broker or our shareholder services department at
800-368-2748.
Minimum To Open an Account Minimum additional
$2,000 investments -$250
Please make your check payable
to the Fund and mail it to:
New Accounts Subsequent Investments
(include application) (include investment slip)
Calvert Group Calvert Group
P.O. Box 219544 P.O. Box 219739
Kansas, City MO Kansas City, MO
64121-9544 64121-9739
By Registered, Calvert Group
Certified, or c/o NFDS,
Overnight Mail 330 West 9th St.
Kansas City, MO 64105-1807
At the Calvert Office Visit the Calvert Office to make
investments by check. See the back
cover page for the address.
Important - How Shares Are Priced
The price of shares is based on the Fund's net asset value ("NAV"). NAV is
computed by adding the value of the Fund's holdings plus other assets,
subtracting liabilities, and then dividing the result by the number of shares
outstanding. The NAV of each class will be different, depending on the number of
shares outstanding for each class.
Portfolio securities and other assets are valued based on market quotations,
except that securities maturing within 60 days are valued at amortized cost. If
market quotations are not readily available, securities are valued by a method
that the Fund's Board of Trustees/Directors believes accurately reflects fair
value.
The NAV is calculated as of the close of each business day, which coincides with
the closing of the regular session of the New York Stock Exchange ("NYSE")
(normally 4 p.m. ET). The Fund is open for business each day the NYSE is open.
Please note that there are some federal holidays, however, such as Columbus Day
and Veterans' Day, when the NYSE is open and the Fund is open but purchases
cannot be received because the banks and post offices are closed.
The Fund holds securities that are primarily listed on foreign exchanges that
trade on days when the NYSE is closed. The Fund does not price shares on days
when the NYSE is closed, even if foreign markets may be open. As a result, the
value of the Fund's shares may change on days when you will not be able to buy
or sell your shares.
When Your Account Will Be Credited
Your purchase will be processed at the NAV next calculated after your order is
received in good order. All of your purchases must be made in US dollars. No
cash will be accepted. No credit card or credit loan checks will be accepted.
Each Fund reserves the right to suspend the offering of shares for a period of
time or to reject any specific purchase order. As a convenience, check purchases
received at Calvert's office in Bethesda, Maryland will be sent by overnight
delivery to the Transfer Agent and will be credited the next business day upon
receipt. Any check purchase received without an investment slip may cause
delayed crediting. If your check does not clear your bank, your purchase will be
canceled and you will be charged a $10 fee plus any costs incurred. All
purchases will be confirmed and credited to your account in full and fractional
shares (rounded to the nearest 1/1000th of a share).
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 current 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 by electronic
funds transfer without the time delay of mailing a check or the added expense of
a wire. 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.
Money transferred 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 p.m. ET. You may request this service on your initial
account application. Calvert Money Controller transactions returned for
insufficient funds will incur a $25 charge.
Telephone Transactions
You may purchase, redeem, exchange shares, wire funds and use Calvert Money
Controller by telephone if you have pre-authorized service instructions. You
receive telephone privileges 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 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 Calvert funds if your investment goals change.
The exchange privilege offers flexibility by allowing you to exchange shares on
which you have already paid a sales charge from one Calvert 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:
Each exchange represents the sale of shares of one Fund and the purchase of
shares of another. Therefore, you could realize a taxable gain or loss.
You may exchange shares acquired by reinvestment of dividends or distributions
into another Calvert Fund at no additional charge.
Shares may only be exchanged for shares of the same class of another Calvert
Fund.
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.
Shareholders (and those managing multiple accounts) who make two purchases and
two 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 between money market funds.
The Fund reserves the right to terminate or modify the exchange privilege with
60 days' written notice.
Combined General Mailings (Householding)
Multiple accounts with the same social security number will receive one mailing
per household of information such as prospectuses and semi-annual and annual
reports. You may request further grouping of accounts to receive fewer mailings.
Separate statements will be generated for each separate account and will be
mailed in one envelope for each combination above.
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 through a program of services offered by a broker/dealer
or financial institution, you should read the program materials together with
this Prospectus. Certain features may be modified in these programs. Investors
may be charged a fee if they effect transactions in Fund shares through a broker
or agent.
Minimum Account Balance
Please maintain a balance in each of your Fund accounts of at least $1,000 per
class. If the balance in your account falls below the minimum during a month,
your account may be closed and the proceeds mailed to the address of record. You
will receive notice that your account is below the minimum, and will be closed
if the balance is not brought up to the required minimum amount within 30 days.
DIVIDENDS, CAPITAL GAINS AND TAXES
The Fund pays dividends from its net investment income annually. Net investment
income consists of 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. Dividend and distribution
payments will vary between classes; dividend payments are anticipated to be
generally higher for Class A shares.
Dividend Payment Options
Dividends and any distributions are automatically reinvested in the same Fund at
NAV (without sales charge), unless you elect to have amounts of $10 or more paid
in cash (by check or by Calvert Money Controller). Dividends and distributions
from any Calvert Group Fund may be automatically invested in an identically
registered account in any other Calvert Group Fund at NAV. If reinvested in the
same 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 returns the check
as undeliverable, 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 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, the 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.
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 31% of certain redemptions. In
addition, you may be subject to a fine by the Internal Revenue Service. 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 SHARES
You may redeem all or a portion of your shares on any day your Fund is open for
business, provided the amount requested is not on hold. When you purchase by
check or with Calvert Money Controller (electronic funds transfer), the purchase
will be on hold for up to 10 business days from the date of receipt. During the
hold period, redemptions proceeds will not be sent until the Transfer Agent is
reasonably satisfied that the purchase payment has been collected. Your shares
will be redeemed at the NAV next 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
your Fund, it may take up to seven (7) days to make payment. Calvert Money
Controller redemptions generally will be credited to your bank account by the
second business day after your phone call. The Fund has the right to redeem
shares in assets other than cash for redemption amounts exceeding, in any 90-day
period, $250,000 or 1% of the net asset value of the affected Fund, whichever is
less. When the NYSE 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. Please note that there
are some federal holidays, however, such as Columbus Day and Veterans' Day, when
the NYSE is open and the Fund is open but redemptions cannot be mailed or wired
because the post offices and banks are closed.
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, P.O. Box 219544, Kansas City, MO 64121-9544
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.
Systematic Check Redemptions
If you maintain an account with a balance of $10,000 or more, you may have up to
two (2) redemption checks for a fixed amount sent to you on the 15th of the
month, simply by sending a letter with all information, including your account
number, and the dollar amount ($100 minimum). If you would like a regular check
mailed to another person or place, your letter must be signature guaranteed.
Unless they otherwise qualify for a waiver, Class B or Class C shares redeemed
by Systematic Check Redemption will be subject to the Contingent Deferred Sales
Charge.
Corporations and Associations
Your letter of instruction and corporate resolution should be signed by
person(s) authorized to act on the account, accompanied by signature
guarantee(s).
Trusts
Your letter of instruction should be signed by the Trustee(s) (as Trustee(s)),
with a signature guarantee. (If the Trustee's name is not registered on your
account, please provide a copy of the trust document, certified within the last
60 days.)
Through your Dealer
Your dealer must receive your request before the close of regular trading on the
NYSE to receive that day's NAV. Your dealer will be responsible for furnishing
all necessary documentation to Calvert Group and may charge you for services
provided.
FINANCIAL HIGHLIGHTS
The financial highlights table is intended to help you understand the Fund's
financial performance for the past 5 fiscal years (or if shorter, the period of
the Fund's operations). The Fund's fiscal year end is March 31. Certain
information reflects financial results for a single share, by Fund and Class.
The total returns in the table represent the rate that an investor would have
earned (or lost) on an investment in the Fund (assuming reinvestment of all
dividends and distributions), and does not reflect any applicable front- or
back-end sales charge. This information has been audited by
PricewaterhouseCoopers LLP whose report, along with the Fund's financial
statements, are included in the Fund's annual report, which is available upon
request.
Years Ended
March 31, March 31,
Class A Shares 1999 1998
Net asset value, beginning $13.34 $12.65
Income from investment operations
Net investment income (.10) (.07)
Net realized and unrealized gain (loss) (3.45) .89
Total from investment operations (3.55) .82
Distributions from
In excess of net realized gain ---- (.13)
Total distributions ---- (.13)
Total increase (decrease) in net asset value (3.55) .69
Net asset value, ending $9.79 $13.34
Total return* (26.61%) 6.72%
Ratios to average net assets:
Net investment income (loss) (.84%) (.60%)
Total expenses+ 3.65% 3.76%
Net expenses 3.36% 3.25%
Expenses reimbursed .54% .89%
Portfolio turnover 60% 74%
Net assets, ending (in thousands) $8,536 $11,613
Number of shares outstanding,
ending (in thousands) 872 870
Periods Ended
March 31, March 31,
1997 1996^
Net asset value, beginning $12.00 $12.00
Income from investment operations
Net investment income (.05) (.04)
Net realized and unrealized gain (loss) .70 .04
Total from investment operations .65 --
Distributions from
In excess of net realized gain -- --
Total distributions -- --
Total increase (decrease) in net asset value .65 --
Net asset value, ending $12.65 $12.00
Total return* 5.42% 0.00%
Ratios to average net assets:
Net investment income (loss) (.45%) (.54%)(a)
Total expenses+ 3.54% 3.75%(a)
Net expenses 3.25% 3.24%(a)
Expenses reimbursed 1.33% 1.24%(a)
Portfolio turnover 23% 6%
Net assets, ending (in thousands) $9,206 $7,974
Number of shares outstanding,
ending (in thousands) 728 664
<PAGE>
Financial Highlights
Period Ended
March 31,
Class B Shares 1999^^
Net asset value, beginning $13.13
Income from investment operations
Net investment income (.06)
Net realized and unrealized gain (loss) (3.32)
Total from investment operations (3.38)
Total increase (decrease) in net asset value (3.38)
Net asset value, ending $9.75
Total return* (25.74%)
Ratios to average net assets:
Net investment income (loss) (1.48%)(a)
Total expenses+ 4.68%(a)
Net expenses 4.02%(a)
Expenses reimbursed 32.86%(a)
Portfolio turnover 60%
Net assets, ending (in thousands) $71
Number of shares outstanding,
ending (in thousands) 7
Period Ended
March 31,
Class C Shares 1999^^
Net asset value, beginning $13.13
Income from investment operations
Net investment income (.05)
Net realized and unrealized gain (loss) (3.33)
Total from investment operations (3.38)
Total increase (decrease) in net asset value (3.38)
Net asset value, ending $9.75
Total return* (25.74%)
Ratios to average net assets:
Net investment income (loss) (1.36%)(a)
Total expenses+ 5.52%(a)
Net expenses 4.02%(a)
Expenses reimbursed 184.03%(a)
Portfolio turnover 60%
Net assets, ending (in thousands) $14
Number of shares outstanding,
ending (in thousands) 1
(a) Annualized
* Total return does not reflect deduction of any front-end or deferred sales
charge.
+ Ratio reflects total expenses before reduction for fees paid indirectly;
such reductions are included in the ratio of net
expenses. Total expenses are presented net of expense waivers and
reimbursements.
^ From April 12, 1995 inception.
^^ From June 1, 1998 inception.
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.
Rights of Accumulation can be applied to several accounts
Class A sales charge breakpoints are automatically calculated for each account
based on the higher of cost or current value of shares previously purchased.
This privilege can be applied to a family group or other qualified group* upon
request. Shares could then be purchased at the reduced sales charge which
applies to the entire group; that is, based on the higher of cost or current
value of shares previously purchased and currently held by all the members of
the group.
* A "qualified group" is one which:
1. has been in existence for more than six months, and
2. has a purpose other than acquiring shares at a discount, and
3. 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
shares, must agree to include sales and other materials related to the Funds in
its publications and mailings to members at reduced or no cost to CDI or
brokers. A pension plan is not a qualified group for rights of accumulation.
Letter of Intent
If you (or your group, as described above) plan to purchase $50,000 or more of
Calvert 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, instead of the higher 4.75% sales charge. 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.
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) or 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 Calvert Distributors, Inc. ("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 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, 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
any 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 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.
EXHIBIT B
SERVICE FEES AND OTHER ARRANGEMENTS WITH DEALERS
Calvert Distributors, Inc., the Fund's underwriter, pays dealers a commission,
or reallowance (expressed as a percentage of the offering price for Class A, and
a percentage of amount invested for Class B and C) when you purchase shares of
non-money market funds. CDI also pays dealers an ongoing service fee while you
own shares of that Fund (expressed as an annual percentage rate of average daily
net assets held in Calvert accounts by that dealer). The table below shows the
amount of payment which differs depending on the Class.
Maximum Commission/Service Fees
Class A Class B* Class C**
4.00%/0.25% 4.00%/0.25% 1.00%/1.00%
*Class B service fees begins to accrue in 13th month.
**Class C pays dealers a service fee of 0.25% and additional compensation of
0.75% for a total of 1.00%. Begins to accrue in 13th month.
Occasionally, CDI may reallow to dealers the full Class A front-end sales
charge. CDI may also pay additional concessions, including non-cash promotional
incentives, such as merchandise or trips, to brokers 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's registered
representatives, advertising or equipment, or to defray the expenses of sales
contests. Calvert-Sloan, CDI, or their affiliates may pay certain broker-dealers
and/or other persons, for the sale and distribution of the securities or for
services to the Fund. Payments may include additional compensation based on
assets held through that firm beyond the regularly scheduled rates, and finder's
fees. CDI pays dealers a finder's fee of up to 1% on certain Class A shares
purchased at NAV. Call 800-368-2750 for more information. Where paid, the
finder's fee is 1% of the NAV purchase amount on the first $2 million, .80% on
$2 to $3 million, .50% on $3 to $50 million, .25% on $50 to $100 million, and
.15% over $100 million. All payments will be in compliance with the rules of the
National Association of Securities Dealers, Inc.
To Open an Account:
800-368-2748
Performance and Prices:
Calvert Information Network
24 hours, 7 days a week
800-368-2745
Service for Existing Accounts:
Shareholders 800-368-2745
Brokers 800-368-2746
TDD for Hearing-Impaired:
800-541-1524
Branch Office:
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
Registered, Certified or
Overnight Mail:
Calvert Group
c/o NFDS
330 West 9th Street
Kansas City, MO 64105
Calvert Group Web-Site
Address: http://www.calvertgroup.com
PRINCIPAL UNDERWRITER
Calvert Distributors, Inc.
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
For investors who want more information about the Fund, the following documents
are available free upon request:
Annual/Semi-Annual Reports: Additional information about the Fund's investments
is available in the Fund's Annual and Semi-Annual reports to shareholders. In
the Fund's annual report, you will find a discussion of the market conditions
and investment strategies that significantly affected the Fund's performance
during its last fiscal year.
Statement of Additional Information (SAI): The SAI for the Fund provides more
detailed information about the Fund and is incorporated into this prospectus by
reference.
You can get free copies of reports and SAIs, request other information and
discuss your questions about the Fund by contacting your broker, or the Fund at:
Calvert Group
4550 Montgomery Ave, Suite 1000N
Bethesda, Md. 20814
Telephone: 1-800-368-2745
Calvert Group Web-Site
Address: http://www.calvertgroup.com
You can review the Fund's report and SAI at the public Reference Room of the
Securities and Exchange Commission. You can get text-only copies:
For a fee, by writing to or calling the Public Reference Room of the Commission,
Washington, D.C. 20549-6009, Telephone: 1-800-SEC-0330.
Free from the Commission's Internet website at http://www.sec.gov.
Investment Company Act file: no. 811- 8924
Printed on recycled paper using soy inks
<PAGE>
CALVERT NEW WORLD FUND, INC.
CALVERT NEW AFRICA FUND
4550 Montgomery Avenue, Bethesda, Maryland 20814
STATEMENT OF ADDITIONAL INFORMATION
JULY 31, 1999
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 ("SAI") is not a prospectus.
Investors should read the Statement of Additional Information in conjunction
with the Fund's Prospectus, dated July 31, 1999. The Fund's audited financial
statements included in its most recent Annual Report to Shareholders, are
expressly incorporated by reference, and made a part of this SAI. The prospectus
and the most recent shareholder report may be obtained free of charge by writing
the Fund at the above address or calling the Fund.
TABLE OF CONTENTS
Investment Policies and Risks 2
Investment Restrictions 8
Dividends, Distributions and Taxes 9
Net Asset Value 10
Calculation of Total Return 11
Advertising 12
Purchase and Redemption of Shares 12
Directors and Officers 13
Investment Advisor and Subadvisors 15
Administrative Services 16
Transfer and Shareholder Servicing Agents 16
Method of Distribution 16
Portfolio Transactions 18
Independent Accountants and Custodians 19
Control Persons and Principal Holders of Securities 19
General Information 19
Appendix 20
<PAGE>
INVESTMENT POLICIES AND RISKS
-----------------------------
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.
FOREIGN SECURITIES
Investments in foreign securities may present risks not typically involved
in domestic investments. The Fund may purchase foreign securities directly, on
foreign markets, or those represented by American Depositary Receipts ("ADRs"),
or other receipts evidencing ownership of foreign securities, such as
International Depositary Receipts and Global Depositary Receipts. ADRs are US
dollar-denominated and traded in the US on exchanges or over-the-counter. If the
Fund invests in an ADR rather than directly in a foreign issuer's stock, the
Fund may possibly avoid some currency and some liquidity risks. The information
available for ADRs is subject to the more uniform and more exacting accounting,
auditing and financial reporting standards of the domestic market or exchange on
which they are traded.
Additional costs may be incurred in connection with 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 US dollars.
United States Government policies have at times, in the past, through
imposition of interest equalization taxes and other restrictions, discouraged
certain investments abroad by United States investors. In addition, foreign
countries may impose withholding and taxes on dividends and interest.
Since investments in securities of issuers domiciled in foreign countries
usually involve currencies of the foreign countries, and since the Fund may
temporarily hold funds in foreign currencies during the completion of investment
programs, the value of the assets of the Fund as measured in United States
dollars may be affected favorably or unfavorably by changes in foreign currency
exchange rates and exchange control regulations. For example, if the value of
the foreign currency in which a security is denominated increases or declines in
relation to the value of the US dollar, the value of the security in U.S.
dollars will increase or decline correspondingly.
Emerging Market Securities. Investing in emerging markets in particular, those
countries whose economies and capital markets are not as developed as those of
more industrialized nations, carries its own special risks. Investments in these
countries may be riskier, and will be subject to erratic and abrupt price
movements. Some economies are less well developed and less diverse, and more
vulnerable to the ebb and flow of international trade, trade barriers and other
protectionist or retaliatory measures. Many of these countries are grappling
with severe inflation or recession, high levels of national debt, and currency
exchange problems. Investments in countries that have recently begun moving away
from central planning and state-owned industries toward free markets should be
regarded as speculative. Among other risks, the economies of such countries may
be affected to a greater extent than in other countries by price fluctuations of
a single commodity, by severe cyclical climactic conditions, lack of significant
history in operating under a market-oriented economy, or by political
instability, including risk of expropriation.
Certain emerging market countries have historically experienced, and may
continue to experience, high rates of inflation, high interest rates, exchange
rate fluctuations, large amounts of external debt, balance of payments and trade
difficulties and extreme poverty and unemployment. The issuer or governmental
authority that controls the repayment of an emerging market country's debt may
not be able or willing to repay the principal and/or interest when due in
accordance with the terms of such debt. As a result of the foregoing, a
government obligor may default on its obligations. If such an event occurs, a
Fund may have limited legal recourse against the issuer and/or guarantor.
Remedies must, in some cases, be pursued in the courts of the defaulting party
itself, and the ability of the holder of foreign government fixed income
securities to obtain recourse may be subject to the political climate in the
relevant country.
Forward Currency Exchange Contracts. 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 exchange market, or through entering into forward
contracts to purchase or sell foreign currencies. It may also use foreign
currency options and futures. See below. A forward foreign currency 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 in the interbank market conducted directly between currency traders
(usually large, commercial banks) and their customers. A forward foreign
currency contract generally has no deposit requirement, and no commissions are
charged at any stage for trades, although they do realize a profit based on the
difference (the "spread") between the prices at which they are buying and
selling various currencies.
The Fund may enter into forward foreign currency contracts for two reasons.
First, the Fund may desire to preserve the United States dollar price of a
security when it enters into a contract for the purchase or sale of a security
denominated in a foreign currency. The Fund may be able to protect itself
against possible losses resulting from changes in the relationship between the
United States dollar and foreign currencies during the period between the date
the security is purchased or sold and the date on which payment is made or
received by entering into a forward contract for the purchase or sale, for a
fixed amount of dollars, of the amount of the foreign currency involved in the
underlying security transactions.
Second, when the Advisor or Subadvisor believes that the currency of a
particular foreign country may suffer a substantial decline against the United
States dollar, the Fund may enter into a forward foreign currency contract to
sell, for a fixed amount of dollars, the amount of foreign currency
approximating the value of some or all of the Fund's securities denominated in
such foreign currency. The precise matching of the forward foreign currency
contract amounts and the value of the Fund's securities involved will not
generally be possible since the future value of the securities will change as a
consequence of market movements between the date the forward contract is entered
into and the date it matures. The projection of short-term currency market
movement is difficult, and the successful execution of this short-term hedging
strategy is uncertain. Although forward foreign currency contracts tend to
minimize the risk of loss due to a decline in the value of the hedged currency,
at the same time they tend to limit any potential gain which might result should
the value of such currency increase.
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
in cash or cash equivalents. Cash equivalents include instruments such as, but
not limited to, US government and agency obligations, certificates of deposit,
banker's acceptances, time deposits commercial paper, short-term corporate debt
securities, and repurchase agreements.
REPURCHASE AGREEMENTS
The Fund may purchase debt securities subject to repurchase agreements,
which are arrangements under which the Fund buys a security, and the seller
simultaneously agrees to repurchase the security at a specified time and price
reflecting a market rate of interest. The Fund engages in repurchase agreements
in order to earn a higher rate of return than it could earn simply by investing
in the obligation which is the subject of the repurchase agreement. Repurchase
agreements are not, however, without risk. In the event of the bankruptcy of a
seller during the term of a repurchase agreement, a legal question exists as to
whether the Fund would be deemed the owner of the underlying security or would
be deemed only to have a security interest in and lien upon such security. The
Fund will only engage in repurchase agreements with recognized securities
dealers and banks determined to present minimal credit risk by the Advisor under
the direction and supervision of the Fund's Board of Directors. In addition, the
Fund will only engage in repurchase agreements reasonably designed to secure
fully during the term of the agreement the seller's obligation to repurchase the
underlying security and will monitor the market value of the underlying security
during the term of the agreement. If the value of the underlying security
declines and is not at least equal to the repurchase price due the Fund pursuant
to the agreement, the Fund will require the seller to pledge additional
securities or cash to secure the seller's obligations pursuant to the agreement.
If the seller defaults on its obligation to repurchase and the value of the
underlying security declines, the Fund may incur a loss and may incur expenses
in selling the underlying security. Repurchase agreements are always for periods
of less than one year. Repurchase agreements not terminable within seven days
are considered illiquid. Under the Investment Company Act, repurchase agreements
are considered loans.
REVERSE REPURCHASE AGREEMENTS
The Fund may also engage in reverse repurchase agreements. Under a reverse
repurchase agreement, the Fund sells securities to a bank or securities dealer
and agrees to repurchase those securities from such party at an agreed upon date
and price reflecting a market rate of interest. The Fund invests the proceeds
from each reverse repurchase agreement in obligations in which it is authorized
to invest. The Fund intends to enter into a reverse repurchase agreement only
when the interest income provided for in the obligation in which the Fund
invests the proceeds is expected to exceed the amount the Fund will pay in
interest to the other party to the agreement plus all costs associated with the
transactions. The Fund does not intend to borrow for leverage purposes. The Fund
will only be permitted to pledge assets to the extent necessary to secure
borrowings and reverse repurchase agreements.
During the time a reverse repurchase agreement is outstanding, the Fund
will maintain in a segregated custodial account an amount of cash, US Government
securities or other liquid, high-quality debt securities equal in value to the
repurchase price. The Fund will mark-to-market the value of assets held in the
segregated account, and will place additional assets in the account whenever the
total value of the account falls below the amount required under applicable
regulations.
The Fund's use of reverse repurchase agreements involves the risk that the
other party to the agreements could become subject to bankruptcy or liquidation
proceedings during the period the agreements are outstanding. In such event, the
Fund may not be able to repurchase the securities it has sold to that other
party. Under those circumstances, if at the expiration of the agreement such
securities are of greater value than the proceeds obtained by the Fund under the
agreements, the Fund may have been better off had it not entered into the
agreement. However, the Fund will enter into reverse repurchase agreements only
with banks and dealers which the Advisor believes present minimal credit risks
under guidelines adopted by the Fund's Board of Directors. In addition, the Fund
bears the risk that the market value of the securities it sold may decline below
the agreed-upon repurchase price, in which case the dealer may request the Fund
to post additional collateral.
AFRICAN SOVEREIGN DEBT
The Fund may invest up to 20% of its assets in fixed-income securities.
These include but are not limited to, foreign government obligations -- 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. Because of their speculative
characteristics, they trade at substantial discounts from face value, but may
offer substantial long-term capital appreciation.
NON-INVESTMENT GRADE DEBT SECURITIES
Non-investment grade debt securities are lower quality debt securities
(generally those rated BB or lower by S&P or Ba or lower by Moody's, known as
"junk bonds"). These securities have moderate to poor protection of principal
and interest payments and have speculative characteristics. (See Appendix for a
description of the ratings.) These securities involve greater risk of default or
price declines due to changes in the issuer's creditworthiness than
investment-grade debt securities. Because the market for lower-rated securities
may be thinner and less active than for higher-rated securities, there may be
market price volatility for these securities and limited liquidity in the resale
market. Market prices for these securities may decline significantly in periods
of general economic difficulty or rising interest rates. Unrated debt securities
may fall into the lower quality category. Unrated securities usually are not
attractive to as many buyers as rated securities are, which may make them less
marketable.
The quality limitation set forth in the Fund's investment policy is
determined immediately after the Fund's acquisition of a given security.
Accordingly, any later change in ratings will not be considered when determining
whether an investment complies with the Fund's investment policy.
When purchasing high-yielding securities, rated or unrated, the Advisors
prepare their own careful credit analysis to attempt to identify those issuers
whose financial condition is adequate to meet future obligations or is expected
to be adequate in the future. Through Fund diversification and credit analysis,
investment risk can be reduced, although there can be no assurance that losses
will not occur.
DERIVATIVES
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. The Fund can use these practices either
as substitution or as protection against an adverse move in the Fund to adjust
the risk and return characteristics of the Fund. If the Advisor and/or
Subadvisor judges market conditions incorrectly or employs a strategy that does
not correlate well with a Fund's investments, or if the counterparty to the
transaction does not perform as promised, these techniques could result in a
loss. These techniques may increase the volatility of the Fund and may involve a
small investment of cash relative to the magnitude of the risk assumed.
Derivatives are often illiquid.
OPTIONS AND FUTURES CONTRACTS
The Fund may, in pursuit of its respective investment objectives, 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 also 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.
The Fund may engage in such transactions only to hedge the existing
positions. It will not engage in such transactions for the purposes of
speculation or leverage. Such investment policies and techniques may involve a
greater degree of risk than those inherent in more conservative investment
approaches.
The Fund may write "covered options" on securities in standard contracts
traded on national securities exchanges. The Fund 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.
PUT AND CALL OPTIONS. The Fund may purchase put and call options, in standard
contracts traded on national securities exchanges or over-the-counter. The Fund
will purchase such options only to hedge against changes in the value of
securities the Fund holds and not for the purposes of speculation or leverage.
By buying a put, the Fund has the right to sell the security at the exercise
price, thus limiting its risk of loss through a decline in the market value of
the security until the put expires. The amount of any appreciation in the value
of the underlying security will be partially offset by the amount of the premium
paid for the put option and any related transaction costs. Prior to its
expiration, a put option may be sold in a closing sale transaction and any
profit or loss from the sale will depend on whether the amount received is more
or less than the premium paid for the put option plus the related transaction
costs.
The Fund may purchase call options on securities. 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. Prior to its
expiration, a call option may be sold in a closing sale transaction. Any profit
or loss from such a sale will depend on whether the amount received is more or
less than the premium paid for the call option plus the related transaction
costs.
COVERED OPTIONS. The Fund may write only covered options on equity and debt
securities in standard contracts traded on national or foreign securities
exchanges, or in individually negotiated contracts traded over-the-counter. This
means that, in the case of call options, so long as the Fund is obligated as the
writer of a call option, the Fund will own the underlying security subject to
the option and, in the case of put options, the Fund 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, the Fund 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, the Fund 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.
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 falls 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.
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.
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 the Fund 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 the Fund's
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.
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 Subadvisor 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 has
adopted 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, but only
when, in the judgment of the 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 US 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 respective
existing investment positions and not for income enhancement, speculation or
leverage purposes. When the Fund purchases a futures contract, it will maintain
an amount of cash, cash equivalents or securities in a segregated account so
that the amount so segregated plus the amount of initial and variation margin
held in the account of its broker equals the market value of the futures
contract, thereby ensuring the transaction is unleveraged.
Futures contracts are designed by boards of trade which are designated
"contracts markets" by the Commodity Futures Trading Commission ("CFTC"). As
series of a registered investment company, the Fund is eligible for exclusion
from the CFTC's definition of "commodity pool operator," meaning that the Fund
may invest in futures contracts under specified conditions without registering
with the CFTC. Futures contracts trade on contracts markets in a manner that is
similar to the way a stock trades on a stock exchange and the boards of trade,
through their clearing corporations, guarantee performance of the contracts.
Options on Futures Contracts. The Fund may purchase and write put or call
options and sell call options on futures contracts. The Fund 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 their
respective existing investment positions and not for income enhancement,
speculation or leverage purposes.
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 Fund against the risk of declining prices. The Fund may purchase put options
and sell put options on futures contracts that are already owned by the Fund.
The Fund will only engage in the purchase of put options and the sale of secured
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 Fund
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 against a decline in the market and the market later
advances, the Fund 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 securities.
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. Forward Foreign Currency Exchange Contracts. A
forward foreign currency exchange contract involves an obligation to purchase or
sell a specific currency at a future date, which may be any fixed number of days
("Term") from the date of the contract agreed upon by the parties, at a price
set at the time of the contract. These contracts are traded directly between
currency traders (usually large commercial banks) and their customers.
The Fund will not enter into such forward contracts or maintain a net
exposure in such contracts where it would be obligated to deliver an amount of
foreign currency in excess of the value of its portfolio securities and other
assets denominated in that currency. The Subadvisor believes that it is
important to have the flexibility to enter into such forward contracts when it
determines that to do so is in the Fund's best interests. See above under
"Foreign Securities."
Foreign Currency Options. A foreign currency option provides the option
buyer with the right to buy or sell a stated amount of foreign currency at the
exercise price at a specified date or during the option period. A call option
gives its owner the right, but not the obligation, to buy the currency, while a
put option gives its owner the right, but not the obligation, to sell the
currency. The option seller (writer) is obligated to fulfill the terms of the
option sold if it is exercised. However, either seller or buyer may close its
position during the option period for such options any time prior to expiration.
A call rises in value if the underlying currency appreciates. Conversely, a
put rises in value if the underlying currency depreciates. While purchasing a
foreign currency option can protect the Fund against an adverse movement in the
value of a foreign currency, it does not limit the gain which might result from
a favorable movement in the value of such currency. For example, if the Fund was
holding securities denominated in an appreciating foreign currency and had
purchased a foreign currency put to hedge against a decline in the value of the
currency, it would not have to exercise its put. Similarly, if the Fund had
entered into a contract to purchase a security denominated in a foreign currency
and had purchased a foreign currency call to hedge against a rise in the value
of the currency but instead the currency had depreciated in value between the
date of purchase and the settlement date, it would not have to exercise its call
but could acquire in the spot market the amount of foreign currency needed for
settlement.
Foreign Currency Futures Transactions. The Fund may use foreign currency
futures contracts and options on such futures contracts. Through the purchase or
sale of such contracts, it may be able to achieve many of the same objectives
attainable through the use of foreign currency forward contracts, but more
effectively and possibly at a lower cost.
Unlike forward foreign currency exchange contracts, foreign currency
futures contracts and options on foreign currency futures contracts are
standardized as to amount and delivery period and are traded on boards of trade
and commodities exchanges. It is anticipated that such contracts may provide
greater liquidity and lower cost than forward foreign currency exchange
contracts.
LENDING PORTFOLIO SECURITIES
The Fund may lend its securities to member firms of the New York Stock
Exchange and commercial banks with assets of one billion dollars or more. 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 their 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 securities only to
those firms the Advisor or Subadvisor deems creditworthy and only on terms the
Advisor believes should compensate for such risk. On termination of the loan,
the borrower is obligated to return the securities to the Fund. The Fund will
recognize any gain or loss in the market value of the securities during the loan
period. The Fund may pay reasonable custodial fees in connection with the loan.
INVESTMENT RESTRICTIONS
-----------------------
FUNDAMENTAL INVESTMENT RESTRICTIONS
The Fund has adopted the following fundamental investment restrictions.
These restrictions cannot be changed without the approval of the holders of a
majority of the outstanding shares of the Fund.
(1) The Fund may not make any investment inconsistent with its classification as
a nondiversified investment company under the 1940 Act.
(2) The Fund may not concentrate its investments in the securities of issuers
primarily engaged in any particular industry (other than securities issued or
guaranteed by the U.S. Government or its agencies or instrumentalities and
repurchase agreements secured thereby).
(3) The Fund may not issue senior securities or borrow money, except from banks
for temporary or emergency purposes and then only in an amount up to 33 1/3% of
the value of its total assets or as permitted by law and except by engaging in
reverse repurchase agreements, where allowed. In order to secure any permitted
borrowings and reverse repurchase agreements under this section, the Fund may
pledge, mortgage or hypothecate its assets.
(4) The Fund may not underwrite the securities of other issuers, except as
allowed by law or to the extent that the purchase of obligations in accordance
with its investment objective and policies, either directly from the issuer, or
from an underwriter for an issuer, may be deemed an underwriting.
(5) The Fund may not invest directly in commodities 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.
(6) The Fund may not make loans, other than through the purchase of money market
instruments and repurchase agreements or by the purchase of bonds, debentures or
other debt securities, or as permitted by law. The purchase of all or a portion
of an issue of publicly or privately distributed debt obligations in accordance
with the Fund's investment objective, policies and restrictions, shall not
constitute the making of a loan.
NONFUNDAMENTAL INVESTMENT RESTRICTIONS
The Fund's Board of Directors has adopted the following nonfundamental
investment restrictions. A nonfundamental investment restriction can be changed
by the Board at any time without a shareholder vote.
(1) The Fund may not invest, in the aggregate, more than 15% of its net assets
in illiquid securities. Purchases of securities outside the US that are not
registered with the SEC or marketable in the U.S. are not per se illiquid.
(2) The Fund may not 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.
(3) The Fund may not 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 deposit or
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.
(4) The Fund may not, with respect to 75% of the Fund's assets, purchase more
than 10% of the outstanding voting securities of any issuer.
(5) The Fund does not intend to make any purchases of securities if borrowing
exceeds 5% of the Fund's total assets.
Any investment restriction which involves a maximum percentage of
securities or assets (except for fundamental investment restriction three and
nonfundamental investment restriction one) 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.
DIVIDENDS, DISTRIBUTIONS, AND TAXES
-----------------------------------
The Fund intends to qualify as regulated investment companies under
Subchapter M of the Internal Revenue Code. If for any reason the Fund should
fail to qualify, it would be taxed as a corporation at the Fund level, rather
than passing through its income and gains to shareholders.
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. As of
March 31, 1999, the Fund had tax-loss carryforwards of $0.
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.
The Fund is required to withhold 31% of any reportable dividends and
long-term capital gain distributions paid and 31% reportable of each redemption
transaction occurring 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 Internal
Revenue Code because of underreporting (however, failure to provide
certification as to the application of section 3406(a)(1)(C) will result only in
backup withholding on dividends, not on redemptions); or (c) the Fund is
notified by the Internal Revenue Service that the TIN provided by the
shareholder is incorrect or that there has been underreporting of interest or
dividends by the shareholder. Affected shareholders will receive statements at
least annually specifying the amount withheld.
In addition, the Fund is required to report to the Internal Revenue Service
the following information with respect to each redemption transaction occurring
in the Fund: (a) the shareholder's name, address, account number and taxpayer
identification number; (b) the total dollar value of the redemptions; and (c)
the identifying CUSIP number.
Certain shareholders are, however, exempt from the backup withholding and
broker reporting requirements. Exempt shareholders include: corporations;
financial institutions; tax-exempt organizations; individual retirement plans;
the US, a State, the District of Columbia, a US possession, a foreign
government, an international organization, or any political subdivision, agency
or instrumentality of any of the foregoing; US 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.
Many states do not tax the portion of the Fund's dividends which is derived
from interest on US Government obligations. State law varies considerably
concerning the tax status of dividends derived from US Government obligations.
Accordingly, shareholders should consult their tax advisors about the tax status
of dividends and distributions from the Fund in their respective jurisdictions.
Dividends paid by the Fund may be eligible for the dividends received
deduction available to corporate taxpayers. Information concerning the tax
status of dividends and distributions and the amount of dividends withheld, if
any, is mailed annually to Fund shareholders.
Investors should note that they may be required 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.
NET ASSET VALUE
---------------
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).
The net asset value fluctuates based on the market value of the Fund's
investments. The net asset value per share for each class is determined every
business day as of the close of the regular session of the New York Stock
Exchange (normally 4:00 p.m. Eastern time). 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 for that class.
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, mean between bid and asked price, or yield equivalent as obtained from
one or more market makers for such securities; (b) securities maturing within 60
days may be valued at cost, plus or minus any amortized discount or premium,
unless the Board of Directors determines such method not to be appropriate under
the circumstances; and (c) all other securities and assets for which market
quotations are not readily available 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
ask price is lower, in which event such bid or ask 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 could 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, AS OF 3/31/99
Net asset value per share
($8,535,713/872,219 shares) $ 9.79
-------
Maximum sales charge, Class A
(4.75% of offering price) 0.49
--------
Offering price per share, Class A $10.28
======
Class B net asset value and offering price per share
($71,115/7,297 shares) $ 9.75
=======
Class C net asset value and offering price per share
($13,628/1,398 shares) $ 9.75
=======
CALCULATION OF TOTAL RETURN
---------------------------
The Fund may advertise "total return." Total return is calculated
separately for each class. Total return is computed by taking the total number
of shares purchased by a hypothetical $1,000 investment after deducting 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. 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 "without
CDSC") which do not deduct sales charge. Return without maximum load, which will
be higher than total return, should be considered only by investors, such as
participants in certain pension plans, to whom the sales charge does not apply,
or for purposes of comparison only with comparable figures which also do not
reflect sales charges, such as Lipper averages. Total returns for the Fund's
shares for the periods indicated are as follows:
Periods Ended CLASS A CLASS B CLASS C
March 31, 1999 Total Return Total Return* Total Return*
WITH/WITHOUT MAXIMUM LOAD WITH/WITHOUT CDSC WITH/WITHOUT CDSC
NEW AFRICA
One year -30.17% -26.67% n/a n/a n/a n/a
From date of inception -5.87% -4.71% -29.46% -25.74% -26.49%
- -25.74%
(April 12, 1995, for Class A)
(June 1, 1998, for Class B)
(June 1, 1998, for Class C)
*cumulative
Total return, like net asset value per share, fluctuates in response to
changes in market conditions. It should not be considered an indication of
future return.
ADVERTISING
-----------
The Fund or its affiliates may provide information such as, but not limited
to, the economy, investment climate, investment principles and rationale,
sociological conditions and political ambiance. Discussion may include
hypothetical scenarios or lists of relevant factors designed to aid the investor
in determining whether the Fund is compatible with the investor's goals. The
Fund may list portfolio holdings or give examples or securities that may have
been considered for inclusion in the Portfolio, whether held or not.
The Fund or its affiliates may supply comparative performance data and
rankings from independent sources such as Donoghue's Money Fund Report, Bank
Rate Monitor, Money, Forbes, Lipper Analytical Services, Inc., CDA Investment
Technologies, Inc., Wiesenberger Investment Companies Service, Russell
2000/Small Stock Index, Mutual Fund Values Morningstar Ratings, Mutual Fund
Forecaster, Barron's, The Wall Street Journal, and Schabacker Investment
Management, Inc. Such averages generally do not reflect any front- or back-end
sales charges that may be charged by Funds in that grouping. The Fund may also
cite to any source, whether in print or on-line, such as Bloomberg, in order to
acknowledge origin of information. The Fund may compare itself or its portfolio
holdings to other investments, whether or not issued or regulated by the
securities industry, including, but not limited to, certificates of deposit and
Treasury notes. The Fund, its Advisor, and its affiliates reserve the right to
update performance rankings as new rankings become available.
Calvert Group is the nation's leading family of socially responsible mutual
funds, both in terms of socially responsible mutual fund assets under
management, and number of socially responsible mutual fund portfolios offered
(source: Social Investment Forum, December 31, 1998). 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, or through the Fund's branch offices, 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 lockbox facility, plus the applicable sales charge
as set forth in the Fund's Prospectus.
All purchases of the Fund shares will be confirmed and credited to
shareholder accounts in full and fractional shares (rounded to the nearest
1/1000th of a share). 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 Fund reserves the right to modify the telephone redemption privilege.
Amounts redeemed by telephone may be mailed by check to the investor to the
address of record. Amounts of more than $50 and less than $300,000 may be
transferred electronically at no charge to the investor. Amounts of $l,000 or
more will be transmitted by wire by the Fund to the investor's account at a
domestic bank or savings association that is a member of the Federal Reserve
System or to a correspondent bank. A charge of $5 is imposed on wire transfers
of less than $1,000. If the institution is not a Federal Reserve System member,
failure of immediate notification to that institution by the correspondent bank
could result in a delay in crediting the funds to the investor's account at the
institution.
Redemption proceeds are normally paid in cash. However, the Fund has the
right to redeem shares in assets other than cash for redemption amounts
exceeding, in any 90-day period, $250,000 or 1% of the net asset value of the
Fund, whichever is less.
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.
DIRECTORS AND OFFICERS
----------------------
The Fund's Board of Directors supervises the Fund's activities and reviews
its contracts with companies that provide it with services. Business information
is provided below about the Directors.
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. Mr. Belayneh is a director of Africa News Service Online. 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 a Managing Director of Alliance Capital Fund
Distributors, Inc. 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, and
is Vice President of Calvert New World Fund, Inc. DOB: January 13, 1950.
MADALA MTHEMBU, Director. Presently, Mr. Mthembu is a Business Development
Executive for Thebe SciTech investments in South Africa. He was formerly the
Senior Advisor to the Premier of the Northern Cape Province of South Africa and
a consultant with the Uniworld Group, Inc., 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. He is Chairman of Bhanoyi
Investment Holdings, an industrial firm, and a Partner of Poho-pedi Livestock
Holdings, a farming and food processing company. DOB: April 22, 1964. Address:
Thebe House, 160 Jan Smuts Avenue, Rosebank 2196, 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, 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
Cathedral 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., and Chairman and a director of
CONXUS Communications, as well as co-chair of Calvert-Sloan advisers, L.L.C. 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. He is a Director of the Mechanics & Farmers Bank in Durham, North
Carolina. 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. Mr. Smith is a
Director of the Domini Social Equity Fund. DOB: September 15, 1943. Address:
Interfaith Center on Corporate Responsibility, 475 Riverside, Room 566, New
York, N.Y. 10115.
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.
IVY WAFFORD DUKE, Esq., Assistant Secretary. Ms. Duke 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 and Secretary and provides
counsel to the Calvert Social Investment Foundation. 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.
VICTOR FRYE, Esq., Assistant Secretary and Compliance Officer. Mr. Frye is
Counsel and Compliance Officer of Calvert Group and an officer of each of its
subsidiaries and Calvert-Sloan Advisers, L.L.C. He is also an officer of each of
the other investment companies in the Calvert Group of Funds. Prior to working
at Calvert Group, Mr. Frye was Counsel and Manager of the Compliance Department
at The Advisors Group. DOB: October 15, 1958.
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.
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.
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, Secretary, and General Counsel of Calvert Group,
Ltd., and each of its subsidiaries. Mr. Tartikoff is also Vice President and
Secretary of Calvert-Sloan Advisers, L.L.C., a director of Calvert Distributors,
Inc., and is an officer of Acacia National Life Insurance Company. DOB: August
12, 1947.
RONALD M. WOLFSHEIMER, CPA, Treasurer. Mr. Wolfsheimer is Senior Vice
President and Chief Financial Officer of Calvert Group, Ltd. and its
subsidiaries and an officer of each of the other investment companies in the
Calvert Group of Funds. Mr. Wolfsheimer is Vice President and Treasurer of
Calvert-Sloan Advisers, L.L.C., and a director of Calvert Distributors, Inc.
DOB: July 24, 1947.
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 1999, directors of
the Fund not affiliated with the Fund's Advisor received fees and expenses of
$56,808.
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
Fiscal Year 1999
(unaudited numbers)
Column 1: Name of Directors
Column 2: Aggregate Compensation from Registrant for service as Director
Column 3: Pension or Retirement Benefits Accrued as part of Registrant
Expenses*
Column 4: Total Compensation from Registrant and Fund Complex paid to
Directors**
Column 1 2 3 4
Elias Belayneh $7,500 $0 $7,500
Robert Browne $7,500 $0 $8,650
Bertie Howard $5,000 $0 $5,000
Madala Mthembu $5,250 $0 $5,250
Donald Norland $7,500 $7,500 $7,500
Tim Smith $5,500 $0 $9,150
Michael Sudarkasa*** $4,500 $0 $4,500
Pamela Van Arsdale*** $0 $0 $0
*Mr. Norland has chosen to defer a portion of his compensation. As of March 31,
1999, Mr. Norland's total deferred compensation, including dividends and capital
appreciation or depreciation, was $7,953.69.
**The Fund Complex consists of nine (9) registered investment companies.
***resigned in 1998.
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"). Effective January 1, 1999, Acacia merged with and became a subsidiary
of Ameritas Acacia Mutual Holding Company, 5900 "0" Street, Lincoln, Nebraska
68501. Sloan Holdings, Inc., an affiliate of Sloan Financial Group, is
controlled by Messrs. Maceo Sloan and Justin Beckett. Its principal place of
business is 103 W. Main Street, Durham, North Carolina 27701. Under the Advisory
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. The Advisor provides the Fund with investment supervision and
management, and office space; furnishes executive and other personnel to the
Fund; and pays the salaries and fees of all Directors who are employees of the
Advisor or its affiliates. The Fund pays all other administrative and operating
expenses, including: custodial, registrar, dividend disbursing and transfer
agency fees; administrative service fees; federal and state securities
registration fees; salaries, fees and expenses of trustees, executive officers
and employees of the Fund, who are not employees of the Advisor or of its
affiliates; 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;
shareholders' meeting expenses; and brokerage commissions and other costs
associated with the purchase and sale of portfolio securities.
For its services, the Advisor receives an annual fee of 1.50 % of the Fund's
average daily net assets. The Advisor may voluntarily waive its fees or assume
expenses of the Fund.
SUBADVISORS
The Fund's Subadvisors are New Africa Advisers, Inc. ("NAA"), controlled by
Sloan Financial Group, Inc., controlled by Messrs. Maceo Sloan and Justin
Beckett, and Calvert Asset Management Company, Inc., controlled by Ameritas
Acacia Mutual Holding Company. Pursuant to Investment Advisory Agreements with
the Advisor, the Subadvisors determine investment selections for the Fund. For
its services, NAA receives an annual fee from the Advisor of 0.755% of the
Fund's average daily net assets under management. CAMCO receives an annual fee
of 0.495%. In addition, the Advisor pays a consulting fee of 0.10% paid to Sloan
Holdings, Inc.
The Fund has received an exemptive order from the Securities and Exchange
Commission to permit the Fund and the Advisor to enter into and materially amend
the Investment Subadvisory Agreement without shareholder approval. Within 90
days of the hiring of any Subadvisor or the implementation of any proposed
material change in the Investment Subadvisory Agreement, the Fund will furnish
its shareholders information about the new Subadvisor or Investment Subadvisory
Agreement. Such information will include any change in such disclosure caused by
the addition of a new Subadvisor or any proposed material change in the
Investment Subadvisory Agreement of the Fund. The Fund will meet this condition
by providing shareholders, within 90 days of the hiring of the Subadvisor or
implementation of any material change to the terms of an Investment Subadvisory
Agreement, with an information statement to this effect.
The advisory fees paid to the Advisor by the Fund for the fiscal years
ended March 31, 1997, 1998, and 1999 were $119,720, $152,500, and $151,986,
respectively. The Advisor reimbursed expenses, or waived fees of $106,380,
$90,766, and $73,037. Investment advisory fees are allocated as a
Portfolio-level expense based on net assets.
ADMINISTRATIVE SERVICES
-----------------------
Calvert Administrative Services Company, Inc., ("CASC") a wholly-owned
subsidiary of Calvert Group, Ltd., has been retained by the Fund to provide
certain administrative services necessary to the conduct of the Fund's affairs.
Such services include the preparation of corporate and regulatory reports and
filings, the oversight of the Fund accounting, and the daily determination of
net investment income and net asset value per share CASC is entitled to receive
an annual fee of 0.25% of the Fund's average net assets for providing such
services. Administrative Service fees are allocated as a class-level expense,
based on net assets. The fees paid by the Fund to Calvert Administrative
Services Company, Inc. for fiscal years 1997, 1998, and 1999 are shown below:
1997 1998 1999
---- ---- ----
New Africa $19,953 $25,417 $24,995
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.,
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 number of the shareholder accounts and transactions.
METHOD OF DISTRIBUTION
----------------------
Calvert Distributors, Inc. ("CDI") is the principal underwriter and
distributor for the Fund. Under the terms of its underwriting agreement with the
Funds, CDI markets and distributes the Fund's shares and is responsible for
preparing advertising and sales literature, and printing and mailing
prospectuses to prospective investors.
Pursuant to Rule 12b-1 under the Investment Company Act of 1940, the Fund
has adopted Distribution Plans (the "Plans") which permit the Fund to pay
certain expenses associated with the distribution and servicing of its shares.
Such expenses for Class A shares may not exceed, on an annual basis, 0.25% of
the Fund's respective average daily net assets. Expenses under the Fund's Class
B and Class C Plans may not exceed, on an annual basis, 1.00% of the Fund's
Class B and Class C average daily net assets, respectively.
The Class A Distribution Plans reimburses CDI only for expenses it incurs,
while the Class B and C Distribution Plans compensate CDI at a set rate
regardless of CDI's expenses.
The Fund's Distribution Plans were approved by the Board of Directors,
including the Directors who are not "interested persons" of the Fund (as that
term is defined in the Investment Company Act of 1940) and who have no direct or
indirect financial interest in the operation of the Plans or in any agreements
related to the Plans. The selection and nomination of the Directors who are not
interested persons of the Fund is committed to the discretion of such
disinterested Directors. In establishing the Plans, the Directors considered
various factors including the amount of the distribution expenses. The Directors
determined that there is a reasonable likelihood that the Plans will benefit the
Fund and its shareholders.
The Plans may be terminated by vote of a majority of the non-interested
Directors who have no direct or indirect financial interest in the Plans, or by
vote of a majority of the outstanding shares of the affected class of the Fund.
If the Fund should ever switch to a new principal underwriter without
terminating the Class B Plan, the fee would be prorated between CDI and the new
principal underwriter. Any change in the Plans that would materially increase
the distribution cost to the Fund requires approval of the shareholders of the
affected class; otherwise, the Plans may be amended by the Directors, including
a majority of the non-interested Directors as described above. The Plans will
continue in effect for successive one-year terms provided that such continuance
is specifically approved by (i) the vote of a majority of the Directors who are
not parties to the Plans or interested persons of any such party and who have no
direct or indirect financial interest in the Plans, and (ii) the vote of a
majority of the entire Board of Directors.
Apart from the Plans, the Advisor and CDI, at their own expense, may incur
costs and pay expenses associated with the distribution of shares of the Fund.
CDI, 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,
pursuant to the Distribution Plans, a distribution fee and a service fee from
the Fund based on the average daily net assets of each of the Fund's respective
Classes. These fees are paid pursuant to the Fund's Distribution Plan. For the
last fiscal year, the Fund's Distribution Plan expenses for each class were
spent for the following purposes:
Class A Class B Class C
-------- -------- --------
Compensation to broker-dealers $25,000 $300 $50
Compensation to sales personnel
Advertising
Printing and mailing of prospectuses
to other than current shareholders $5,000
Compensation to underwriters
Interest, financing charges
Other
New Africa Class A shares are offered at net asset value plus a front-end sales
charge as follows:
As a % of As a % of Allowed to
Amount of offering net amount Brokers as
Investment price invested a % 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 receives any front-end sales charge or CDSC paid. A portion of the
front-end sales charge may be reallowed to dealers. The aggregate amount of
sales charges (gross underwriting commissions) and for Class A only, the net
amount retained by CDI (i.e., not reallowed to dealers) for the last 3 fiscal
years are:
FISCAL YEAR 1997 1998 1999
CLASS A Gross Net Gross Net Gross Net
- -------- ----- --- ----- --- ----- ---
New Africa $19,812 $9,725 $22,930 -$28,032 $22,435
$8,982
FISCAL YEAR 1997 1998 1999
CLASS B
- --------
New Africa n/a n/a $2,856
FISCAL YEAR 1997 1998 1999
CLASS C
- --------
New Africa n/a n/a n/a
Fund Directors and certain other affiliated persons of the Fund are exempt
from the sales charge since the distribution costs are minimal to persons
already familiar with the Fund. Other groups (e.g., group retirement plans) are
exempt due to economies of scale in distribution. See Exhibit A to the
Prospectus.
PORTFOLIO TRANSACTIONS
----------------------
Fund transactions are undertaken on the basis of their desirability from an
investment standpoint. The Fund's Advisor and Subadvisors make investment
decisions and the choice of brokers and dealers under the direction and
supervision of the Fund's Board of Directors.
Broker-dealers who execute transactions on behalf of the Fund are selected on
the basis of their execution capability and trading expertise considering, among
other factors, the overall reasonableness of the brokerage commissions, current
market conditions, size and timing of the order, difficulty of execution, per
share price, etc.
For the last three fiscal years, total brokerage commissions paid are as
follows:
1997 1998 1999
---- ---- ----
New Africa $37,328 $132,611 $52,855
The Fund did not pay any brokerage commissions to affiliated persons during the
last three fiscal years.
While the Fund's Advisor and Subadvisors select brokers primarily on the
basis of best execution, in some cases they may direct transactions to brokers
based on the quality and amount of the research and research-related services
which the brokers provide to them. These services are of the type described in
Section 28(e) of the Securities Exchange Act of 1934 and may include analyses of
the business or prospects of a company, industry or economic sector, or
statistical and pricing services. Other such services are designed primarily to
assist the Advisor in monitoring the investment activities of the Subadvisors of
the Fund. Such services include portfolio attribution systems, return-based
style analysis, and trade-execution analysis.
If, in the judgment of the Advisor or Subadvisors, the Fund or other accounts
managed by them will be benefited by supplemental research services, they are
authorized to pay brokerage commissions to a broker furnishing such services
which are in excess of commissions which another broker may have charged for
effecting the same transaction. These research services include advice, either
directly or through publications or writings, as to the value of securities, the
advisability of investing in, purchasing or selling securities, and the
availability of securities or purchasers or sellers of securities; furnishing of
analyses and reports concerning issuers, securities or industries; providing
information on economic factors and trends; assisting in determining portfolio
strategy; providing computer software used in security analyses; providing
portfolio performance evaluation and technical market analyses; and providing
other services relevant to the investment decision making process. It is the
policy of the Advisor that such research services will be used for the benefit
of the Fund as well as other Calvert Group funds and managed accounts.
For the fiscal year ended March 31, 1999, the Fund, through its Advisor
and/or Subadvisor, directed brokerage for research services in the following
amounts:
Related
Amount of Transactions Commissions
------------------------ -----------
New Africa $8,400,144 $52,855
The Portfolio turnover rates for the last two fiscal years are as follows:
1998 1999
---- ----
New Africa 74% 60%
INDEPENDENT ACCOUNTANTS AND CUSTODIANS
--------------------------------------
PricewaterhouseCoopers LLP has been selected by the Board of Directors to
serve as independent auditors for fiscal year 2000. State Street Bank & Trust
Company, N.A., 225 Franklin Street, Boston, MA 02110, serves as custodian of the
Fund's investments. Allfirst Financial Inc., 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.
CONTROL PERSONS AND PRINCIPAL HOLDERS OF SECURITIES
---------------------------------------------------
As of July 6, 1999, the following shareholders owned of record 5% or more
of the class shown:
Name and Address % of Ownership
The Public School Retirement System 53.60%, Class A
of the City of St. Louis
St. Louis, MO
Dean Witter Reynolds 5.71%, Class B
FBO A. Baxter
Albuquerque, NM
R. Klay TSA Plan 24.74%, Class C
Holland, MI
M. Martin Roth IRA 9.82%, Class C
Jamaica Plain, MA
C. L. McDermott IRA Plan 9.55%, Class C
Mount Shasta, CA
M. Anderson TSA Plan 6.57%, Class C
Minneapolis, MN
F. Walker IRA SEP Plan 5.49%, Class C
Portland, OR
GENERAL INFORMATION
-------------------
The Fund is an open-end non-diversified management investment company,
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 is not required to hold annual shareholder meetings, but special
meetings may be called for certain purposes such as electing Directors, changing
fundamental policies, or approving a management contract. Under certain
circumstances, shareholders may call a special shareholder meeting. Pursuant to
Section 16(c) of the Investment Company Act, the Fund will assist those
shareholders in their communications with other shareholders. As a shareholder,
you receive one vote for each share you own, except that matters affecting
classes differently, such as Distribution Plans, will be voted on separately by
the affected class(es).
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 23. EXHIBITS
99.B1 ARTICLES OF INCORPORATION, INCORPORATED BY REFERENCE TO
REGISTRANT'S
POST-EFFECTIVE FILING NO. 5, FILED JUNE 1, 1999, ACCESSION
NUMBER 0000934700-99-000004.
99.B2 BY-LAWS, INCORPORATED BY REFERENCE TO REGISTRANT'S
POST-EFFECTIVE FILING NO. 5, FILED JUNE 1, 1999, ACCESSION
NUMBER 0000934700-99-000004.
99.B5. INVESTMENT ADVISORY CONTRACT, INCORPORATED BY REFERENCE TO
REGISTRANT'S
POST-EFFECTIVE FILING NO. 5, FILED JUNE 1, 1999, ACCESSION
NUMBER 0000934700-99-000004.
99.B5.A. INVESTMENT SUB-ADVISORY CONTRACT (NEW AFRICA ADVISERS,
INC.), INCORPORATED BY REFERENCE TO REGISTRANT'S
POST-EFFECTIVE FILING NO. 5, FILED JUNE 1, 1999, ACCESSION
NUMBER 0000934700-99-000004.
99.B5.B. INVESTMENT SUB-ADVISORY CONTRACT (CALVERT ASSET MANAGEMENT
COMPANY, INC.), INCORPORATED BY REFERENCE TO REGISTRANT'S
POST-EFFECTIVE FILING NO. 5, FILED JUNE 1, 1999, ACCESSION
NUMBER 0000934700-99-000004.
99.B6 UNDERWRITING AGREEMENT, INCORPORATED BY REFERENCE TO
REGISTRANT'S
POST-EFFECTIVE FILING NO. 4, FILED MAY 28, 1998, ACCESSION
NUMBER 0000934700-98-000005.
99.B7 DIRECTORS' DEFERRED COMPENSATION AGREEMENT, INCORPORATED BY
REFERENCE TO REGISTRANT'S
POST-EFFECTIVE FILING NO. 5, FILED JUNE 1, 1999, ACCESSION
NUMBER 0000934700-99-000004.
99.B8 CUSTODIAL CONTRACT, INCORPORATED BY REFERENCE TO
REGISTRANT'S PRE-EFFECTIVE FILING NO. 2.
99.B9A TRANSFER AGENCY CONTRACT AND SHAREHOLDER SERVICING CONTRACT,
INCORPORATED BY REFERENCE TO REGISTRANT'S POST-EFFECTIVE
FILING NO. 4, MAY 28, 1998, ACCESSION NUMBER 0000934700-
98-000005.
99.B9B ADMINISTRATIVE SERVICES AGREEMENT, INCORPORATED BY REFERENCE
TO REGISTRANT'S
POST-EFFECTIVE FILING NO. 5, FILED JUNE 1, 1999, ACCESSION
NUMBER 0000934700-99-000004.
99.B10 OPINION AND CONSENT OF COUNSEL AS TO LEGALITY OF SHARES
BEING REGISTERED, FILED HEREWITH.
99.B11 INDEPENDENT AUDITORS' CONSENT, FILED HEREWITH.
99.B13 LETTER REGARDING INITIAL CAPITAL, INCORPORATED BY REFERENCE
TO REGISTRANT'S
POST-EFFECTIVE FILING NO. 5, FILED JUNE 1, 1999, ACCESSION
NUMBER 0000934700-99-000004.
99.B15 PLAN OF DISTRIBUTION, FOR CLASS A, B AND C, INCORPORATED BY
REFERENCE TO REGISTRANT'S
POST-EFFECTIVE FILING NO. 5, FILED JUNE 1, 1999, ACCESSION
NUMBER 0000934700-99-000004.
99.B16 SCHEDULE FOR COMPUTATION OF PERFORMANCE QUOTATION,
INCORPORATED BY REFERENCE TO REGISTRANT'S POST-EFFECTIVE
FILING NO. 3, FILED JULY 25, 1997, ACCESSION NUMBER
0000934700-97-000007.
99.B17A 18F-3 MULTIPLE CLASS PLAN DOCUMENT, INCORPORATED BY REFERENCE
TO REGISTRANT'S POST-EFFECTIVE FILING NO. 4, MAY 28, 1998,
ACCESSION NUMBER 0000934700-98-000005.
99.B17B EXHIBIT 24 - POWER OF ATTORNEY FORMS SIGNED BY EACH DIRECTOR,
INCORPORATED BY REFERENCE TO REGISTRANT'S
POST-EFFECTIVE FILING NO. 5, FILED JUNE 1, 1999, ACCESSION
NUMBER 0000934700-99-000004.
ITEM 24. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH REGISTRANT
NOT APPLICABLE.
ITEM 25. 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 $5 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 26. 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. DIRECTOR
HOLDING COMPANY AND
4550 MONTGOMERY AVENUE OFFICER
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
--------------
VICTORIA TREADWELL NCM CAPITAL MANAGEMENT OFFICER
INVESTMENT ADVISOR
103 WEST MAIN STREET
DURHAM, NORTH CAROLINA 27701
------------------
CALVERT-SLOAN ADVISERS, L.L.C. DIRECTOR
INVESTMENT ADVISOR AND
4550 MONTGOMERY AVENUE OFFICER
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
----------------
CRAIG CLOYED CALVERT-SLOAN ADVISERS, L.L.C. DIRECTOR
INVESTMENT ADVISOR
4550 MONTGOMERY AVENUE
BETHESDA, MARYLAND 20814
---------------
CALVERT DISTRIBUTORS, INC. OFFICER
BROKER-DEALER
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
---------------
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
---------------
VICTOR FRYE 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 27. 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
ANTHONY EAMES REGIONAL VICE PRESIDENT NONE
BILL HAIRGROVE REGIONAL VICE PRESIDENT NONE
STEVE HIMBER REGIONAL VICE PRESIDENT NONE
BEN OGBOGU REGIONAL VICE PRESIDENT NONE
CHRISTIE TESKE REGIONAL VICE PRESIDENT NONE
TANYA WILLIAMS REGIONAL VICE PRESIDENT NONE
SUSAN WALKER BENDER ASSISTANT SECRETARY ASSISTANT SECRETARY
KATHERINE STONER ASSISTANT SECRETARY ASSISTANT SECRETARY
IVY WAFFORD DUKE ASSISTANT SECRETARY ASSISTANT SECRETARY
VICTOR FRYE ASSISTANT SECRETARY ASSISTANT SECRETARY
AND COMPLIANCE OFFICER
(C) INAPPLICABLE.
ITEM 28. LOCATION OF ACCOUNTS AND RECORDS
RONALD M. WOLFSHEIMER, TREASURER
AND
WILLIAM M. TARTIKOFF, SECRETARY
4550 MONTGOMERY AVENUE, SUITE 1000N
BETHESDA, MARYLAND 20814
ITEM 29. MANAGEMENT SERVICES
NOT APPLICABLE
ITEM 30. UNDERTAKINGS
NOT APPLICABLE
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 29TH DAY OF
JULY, 1999.
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 28, 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
**BY SUSAN WALKER BENDER AS ATTORNEY-IN-FACT. SEE EXHIBIT 24.
<PAGE>
EXHIBIT INDEX
FORM N-1A
ITEM NO.
99.B9 RULE 18F-3 MULTIPLE CLASS PLAN, FILED HEREWITH.
99.B10 OPINION AND CONSENT OF COUNSEL AS TO LEGALITY OF SHARES
BEING REGISTERED, FILED HEREWITH.
99.B11 INDEPENDENT AUDITORS' CONSENT, FILED HEREWITH.
EX. 27 FINANCIAL DATA SCHEDULES, FILED HEREWITH.
Exhibit 99.B9
THE CALVERT GROUP OF FUNDS
Rule 18f-3 Multiple Class Plan
------------------------------
Under the Investment Company Act of 1940
As restated December 1998
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 and Class T.
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. Class T shares are only available through certain
dealers.
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. Class T shares have limited services by Calvert, rather the services to
shareholders are provided by the dealer offering the Class T shares.
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. Sales of Class
A shares of $1 million or more sold at NAV shall be subject to a 1.00%
contingent deferred sales charge ("CDSC") if the shares are redeemed within one
year of purchase. 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 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.
Class T shares shall be subject to neither a front-end sales charge, nor a CDSC,
but they are 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 and shareholder servicing fees; (c) administrative service fees;
and (e) certain state registration fees.
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, Class O, and Class
T 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.
Class T shares shall be exchangeable only for: (a) Class T 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, Inc.
Calvert Social Investment Fund
Calvert World Values Fund, Inc.
Calvert New World Fund, Inc.
First Variable Rate Fund
<PAGE>
Exhibit II
Calvert Social Investment Fund (CSIF)
Maximum Maximum Maximum
Class A Class A Class C
Front-End 12b-1 Fee 12b-1Fee
Sales Charge
-------------
CSIF Balanced 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%
Balanced,
Class B 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. 6 yrs.
<PAGE>
Exhibit II
Calvert Tax-Free Reserves (CTFR)
Maximum Maximum Maximum Maximum
Class A Class A Class C Class T
Front-End 12b-1 Fee 12b-1Fee 12b-1 Fee
Sales Charge
-------------
CTFR Money Market N/A N/A N/A 0.25%
CTFR Long-Term 3.75% 0.35% 1.00%
CTFR Vermont 3.75% N/A 1.00%
Long-Term Maximum
Class B and Class B
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 6 yrs.
<PAGE>
Exhibit II
Calvert Municipal Fund, Inc. (CMF)
Maximum Maximum Maximum
Class A Class A Class C
Front-End 12b-1 Fee 12b-1Fee
Sales Charge
-------------
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
Maximum
Class B Class B
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 Maximum Maximum
Class A Class A Class C
Front-End 12b-1 Fee 12b-1Fee
Sales Charge
-------------
New Vision Small Cap 4.75% 0.25% 1.00%
Calvert Income Fund 3.75% 0.50% 1.00%
Maximum
Class B Class B
Contingent Deferred Sales Charge New Vision Income 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. 6 yrs.
<PAGE>
Exhibit II
Calvert World Values Fund, Inc. (CWVF)
Maximum Maximum Maximum
Class A Class A Class C
Front-End 12b-1 Fee 12b-1Fee
Sales Charge
-------------
International Equity 4.75% 0.35% 1.00%
Capital Accumulation 4.75% 0.35% 1.00%
Maximum
Class B Class B
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.
<PAGE>
Exhibit II
Calvert New World Fund, Inc. (CNWF)
Maximum Maximum Maximum
Class A Class A Class C
Front-End 12b-1 Fee 12b-1Fee
Sales Charge
-------------
Calvert New Africa 4.75% 0.25% 1.00%
Maximum
Class B Class B
Contingent Deferred Sales Charge CNWF 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 (FVRF)
Maximum Maximum Maximum Maximum
Class A Class A Class C Class T
Front-End 12b-1 Fee 12b-1Fee 12b-1 Fee
Sales Charge
-------------
First Government
Money Market N/A N/A 1.00% 0.25%
Maximum
Class B Class B
Contingent Deferred Sales Charge 12b-1 Fee
- ----------------------------------- ----------
CDSC of original Class B Fund purchased 1.00%
is applied upon redemption from Class B
of Calvert First Government Money Market Fund.
Conversion period of original Class B Fund purchased is applied.
Exhibit 99.B10
July 29, 1999
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. 6 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. 6 to its Registration Statement.
Sincerely,
/s/ Susan Walker Bender
Susan Walker Bender
Associate General Counsel
Exhibit 99.B11
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. 6 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 April 16,
1999, 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, 1999, 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/ PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Baltimore, Maryland
July 29, 1999
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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