UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 14A
Proxy Statement Pursuant to Section 14(a) of the Securities Exchange
Act of 1934
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THE CALVERT FUND
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Important Notification: Proposed Merger of Certain Calvert Money Market Portfolios
June 6, 2013
Important Notification: Proposed Merger of Certain Calvert Money Market Portfolios – Please share this with others in your firm who need to be advised of these proposed mergers.
Dear Partner:
Given the current market environment, as well as our outlook on interest rates for money market investments, the boards of directors of the following Calvert funds recently voted to merge the following portfolios into Calvert Ultra-Short Income Fund (CULAX).
Funds to be Merged
Calvert Money Market Portfolio | O | CSIXX | 131618209 | 904 |
Calvert First Government Money Market Fund | B | FGBXX | 131577504 | 202 |
| C | FVCXX | 131577603 | 669 |
| O | FVRXX | 131577108 | 901 |
Calvert Cash Reserves Institutional Prime Fund | I | CCIXX | 131522104
| 707
|
Please be aware that as of today, June 6, 2013, these funds will no longer accept any new accounts. Please see attached for more details.
Pending shareholder approval, we expect these mergers to be finalized on or prior to December 31, 2013, with the completion of the mergers being staggered between late September 2013 and early December 2013. Shareholders who do not liquidate their money market shares or transfer assets to another Calvert fund prior to the completion of the applicable merger, will have their shares automatically replaced at NAV with Class A shares of the Calvert Ultra-Short Income Fund, which has a variable NAV.
Calvert believes these proposed mergers are in the long-term best interest of our shareholders.
On the attached document you will find a detailed explanation of the proposed mergers including key dates, important considerations for plan participants and a brief profile of the Calvert Ultra-Short Income Fund.
Thank you for your continued interest in the Calvert family of funds. Please feel free to contact me should you have any questions concerning the proposed fund mergers.
Christine Teske, Senior Institutional Vice President
Calvert Investment Distributors, Inc.
4550 Montgomery Avenue
Bethesda, Maryland 20814
301.951.4871
christine.teske@calvert.com
www.calvert.com
Important Notification: Proposed Merger of Certain Calvert Money Market Portfolios
Given the current market environment, as well as our outlook on interest rates for money market investments, the boards of directors of the Calvert Money Market Portfolio, the Calvert First Government Money Market Fund, and the Calvert Cash Reserves Institutional Prime Fund recently voted to merge these portfolios into Calvert Ultra-Short Income Fund (CULAX).
Pending shareholder approval, we expect these mergers to be finalized on or prior to December 31, 2013, with the completion of the mergers being staggered between late September 2013 and early December 2013. Shareholders who do not liquidate their money market shares or transfer assets to another Calvert fund prior to the completion of the applicable merger, will have their shares automatically replaced at NAV with Class A shares of the Calvert Ultra-Short Income Fund, which has a variable NAV.
Calvert believes these actions are in the long-term best interest of our shareholders.
Funds and Share Classes
While not all these funds may be available on your platform, I am providing you with a complete list of the funds below along with their available share classes, ticker symbols and CUSIPs.
Calvert Money Market Portfolio | O | CSIXX | 131618209 | 904 |
Calvert First Government Money Market Fund | B | FGBXX | 131577504 | 202 |
| C | FVCXX | 131577603 | 669 |
| O | FVRXX | 131577108 | 901 |
Calvert Cash Reserves Institutional Prime Fund | I | CCIXX | 131522104
| 707
|
Key Dates Associated with the Proposed Mergers
Below please find summary information regarding the timeline and milestones that surround the funds’ proposed mergers.
· As of June 6, 2013, the funds will no longer accept any new accounts.
· Calvert will tentatively mail proxies on or about August 9, 2013.
· A meeting for record-date shareholders to vote on the proposed mergers will be held on September 20, 2013.
Important Considerations for Participants
· Unlike a money market fund, Calvert Ultra Short Income Fund is a bond mutual fund with a fluctuating NAV. An investor could lose money on an investment in the Fund or the Fund could underperform.
· Participants should be advised of the risks associated with fixed income investing, including interest rate and credit risks.
· Participants should understand the appropriateness of the new fund in relation to other investments in their retirement plan.
· Calvert Ultra-Short Income Fund normally imposes a two-percent short-term trading fee on redemptions and exchanges made within seven days of purchase, however, the redemption fee will be waived for all initial transfers. After that, however, the Fund’s short-term trading fee will apply to new purchases.
About Calvert Ultra-Short Income Fund
The Calvert Ultra-Short Income Fund seeks to maximize income consistent with preservation of capital, through investment in short-term bonds and income-producing securities.
Calvert Ultra-Short Income Fund is rated 4-stars by Morningstar among 91 funds in the Morningstar Ultra-Short Bond category for the Fund’s Class A Shares (Load Waived) for the period ended May 31, 2013, based on risk-adjusted returns. Calvert’s absolute rank is two out of 91 funds*.
Fund Profile
The Calvert Ultra-Short Income Fund is managed by Calvert Investment Management, Inc. using a team approach. Vishal Khanduja is the lead portfolio manager; Matthew Duch and Mauricio Agudelo are co-portfolio managers. The Fund’s management team seeks to add value by emphasizing the following:
· Principal preservation by limiting interest rate sensitivity and maintaining the portfolio’s average duration in the ultra-short range (less than, or equal to, one year); typically it is maintained in the three- to four-month range.
· Current income by strategically allocating assets to variable-rate and investment-grade securities.
· Total return through an active portfolio management strategy, supported by rigorous credit analysis that seeks to invest in undervalued securities with capital appreciation potential.
· Avoiding investment in tobacco companies.
For more information on the Calvert Ultra-Short Income Fund, visit www.calvert.com. You can also view the Fund’s most recent snapshot here.
Please feel free to contact Christine Teske, Senior Institutional Vice President, should you have any questions concerning the proposed fund mergers.
*Past performance is no guarantee of future results. Source: Morningstar, Inc. 2013. For each fund with at least a three-year history, Morningstar calculates proprietary ratings using a risk-adjusted formula that measures the amount of variation in a fund’s monthly performance, giving more emphasis to downward variations and rewarding consistent performance. Ratings reflect sales load/charge and redemption fee except where noted and are subject to change each month. The top 10% of the funds in a category receive five stars; the next 22.5% four stars; the next 35% three stars; the next 22.5% two stars; and the last 10% one star. A high rating does not necessarily mean a fund had a positive return for the period. The Overall Morningstar Rating is derived from a weighted average of a fund’s three-, five-, and 10-year (if applicable) ratings. The Fund (Class A Load Waived) received four and five stars among 87 and 80 funds, respectively, for the three- and five-year periods in the Morningstar Ultrashort Bond
category. Morningstar rating is for Class A Shares only; other classes may have different performance characteristics and ratings.
Investment in mutual funds involves risk, including possible loss of principal invested.
For more information on Calvert funds for institutional investors or on other institutional products, please call Calvert at 800.327.2109 or visit www.calvert.com for a free summary prospectus or prospectus. An investor should consider the investment objectives, risks, charges and expenses of an investment carefully before investing. The summary prospectus and prospectus contain this and other information. Read them carefully before you invest or send money.
Calvert mutual funds are underwritten and distributed by Calvert Investment Distributors, Inc., member, FINRA, and a subsidiary of Calvert Investments, Inc.
Additional Information and Where to Find It
In connection with the proposed reorganizations, The Calvert Fund will file with the Securities and Exchange Commission (“SEC”), and will furnish to the shareholders of the applicable Merging Portfolio, a prospectus/proxy statement and other relevant documents. These materials do not constitute a solicitation of any vote or approval. SHAREHOLDERS OF EACH MERGING PORTFOLIO ARE URGED TO READ THE PROSPECTUS/PROXY STATEMENT WHEN IT BECOMES AVAILABLE AND ANY OTHER DOCUMENTS TO BE FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED REORGANIZATIONS, OR INCORPORATED BY REFERENCE IN THE PROSPECTUS/PROXY STATEMENT, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED REORGANIZATIONS.
Investors will be able to obtain a free copy of documents filed with the SEC at the SEC’s website at http://www.sec.gov. In addition, investors may obtain a free copy of the SEC filings made by The Calvert Fund and each registered investment company of which a Merging Portfolio is a series (each, a “Merging RIC”) by directing a request to: Calvert Investments, Inc., Attention: Client Services, 4550 Montgomery Avenue, Suite 1125N, Bethesda, Maryland 20814; (800) 368-2745. With respect to each Reorganization, The Calvert Fund, each Merging RIC and their trustees and officers may be deemed to be “participants” in the solicitation of proxies from shareholders of the applicable Merging Portfolio in favor of that Reorganization. Information regarding the persons who may, under the rules of the SEC, be considered participants in the solicitation of the shareholders of each Merging Portfolio is set forth in the Statement of Additional Information dated January 31, 2013 or April 30, 2013, as applicable, of each Merging Portfolio, and in the Statement of Additional Information of Calvert Ultra-Short Income Fund dated January 31, 2013. These documents have been filed with the SEC and are available at www.calvert.com.
