INVESTMENT OBJECTIVE
The Fund seeks to provide long-term capital appreciation through investment primarily in small-cap common stocks of U.S. companies that meet the Fund’s investment criteria, including financial, sustainability and social responsibility factors and that, at the time of purchase, are considered by the Advisor to be attractively valued. This objective may be changed by the Fund’s Board of Directors without shareholder approval.
FEES AND EXPENSES OF THE FUND
This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund.
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Shareholder Fees
(fees paid directly from your investment)
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Class Y
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Maximum sales charge (load) on purchases (as a % of offering
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None
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price)
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Maximum deferred sales charge (load) (as a % of amount
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None
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purchased or redeemed, whichever is lower)
1
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|
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Redemption fee (as a % of amount redeemed or exchanged
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2.00
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%
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within 30 days of purchase)
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|
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Annual Fund Operating Expenses
(expenses that you pay each year as a
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|
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% of the value of your investment)
1
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Class Y
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Management fees
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0.95
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%
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Distribution and service (12b-1) fees
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None
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Other expenses
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0.46
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%
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Total annual fund operating expenses
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1.41
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%
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1 Based on actual expenses for the past fiscal year adjusted for estimates of Class Y specific expenses.
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 and then redeem your shares at the end of those periods;
• 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:
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1 Year
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3 Years
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5 Years
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10 Years
|
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$144
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$446
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$771
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$1,691
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Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (“turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the “Example”, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 3% of its portfolio’s average value.
INVESTMENTS, RISKS AND PERFORMANCE
Principal Investment Strategies
The Fund offers opportunities for long-term capital appreciation with a moderate degree of risk through a mix of smaller company stocks that meet the Fund’s investment criteria, including financial, sustainability and social responsibility factors. The Fund normally invests at least 80% of its net assets, including borrowings for investment purposes, in common stocks of small companies. The Fund will provide shareholders with at least 60 days’ notice before changing this 80% policy. Calvert defines small companies generally as having a market capitalization of $3 billion or less at the time of initial purchase.
The Fund may also invest up to 25% of its net assets in foreign securities.
The investment process combines active stock selection and systematic portfolio construction to produce a portfolio that is capable of achieving positive excess returns with relatively low active risk relative to the Fund’s benchmark.
The Fund seeks to achieve its investment objective by implementing an investment strategy based on the Advisor’s stock selection models, which evaluate a broad range of small-cap securities. Position adjustments will take place only to the extent that planned changes to the Fund’s investments have a sufficiently greater probability of producing positive excess returns than does the existing portfolio.
SUMMARY PROSPECTUS OCTOBER 18, 2013
1
Sustainable and Socially Responsible Investing.
The Fund seeks to invest in companies and other enterprises that demonstrate positive environmental, social and governance performance as they address corporate responsibility and sustainability challenges. Calvert believes that there are long-term benefits in an investment philosophy that attaches material weight to the environment, workplace relations, human rights, Indigenous Peoples’ rights, community relations, product safety and impact, and corporate governance and business ethics. Calvert also believes that managing risks and opportunities related to these issues can contribute positively to company performance as well as to investment performance over time. The Fund has sustainable and socially responsible investment criteria that reflect specific types of companies in which the Fund seeks to invest and seeks to avoid investing.
Investments are first selected for financial soundness and then evaluated according to the Fund’s sustainable and socially responsible investment criteria. Investments must be consistent with the Fund’s current investment criteria, including financial, sustainability and social responsibility factors, the application of which is in the economic interest of the Fund and its shareholders.
Principal Risks
You could lose money on your investment in the Fund, or the Fund could underperform, because of the risks described below. 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.
Management Risk.
Individual investments of the Fund may not perform as expected, and the Fund’s portfolio management practices may not achieve the desired result.
Stock Market Risk.
The market prices of stocks held by the Fund may fall.
Common Stock Risk
. Although common stocks have a history of long-term growth in value, their prices fluctuate based on changes in a company’s financial condition, on overall market and economic conditions, and on investors’ perception of a company’s well-being.
Small-Cap Company Risk.
Prices of small-cap stocks can be more volatile than those of larger, more established companies. Small-cap companies are more likely to have more limited product lines, fewer capital resources and less depth of management than larger companies.
Foreign Securities Risk.
Investing in foreign securities involves additional risks relating to political, social, and economic developments abroad. Other risks result from differences between regulations that apply to U.S. and foreign issuers and markets, and the potential for foreign markets to be less liquid and more volatile than U.S. markets.
Foreign Currency Risk.
Securities that trade or are denominated in currencies other than the U.S. dollar may be adversely affected by fluctuations in currency exchange rates. When the U.S. dollar strengthens relative to a foreign currency, the U.S. dollar value of an investment denominated in that currency will typically fall.
Performance
The following bar chart and table show the Fund’s annual returns and its long-term performance, which give some indication of the risks of investing in the Fund. The bar 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 with that of a broad-based securities market index, a composite index and an average.
The Fund’s past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. For updated performance information, visit www.calvert.com.
Performance results for Class Y shares prior to October 18, 2013 (the Class Y shares’ inception date) reflect the performance of Class A shares at net asset value. Actual Class Y share performance would have been higher than Class A share performance because Class Y has lower class-specific expenses than Class A.
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Quarter
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Total
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Ended
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Return
|
|
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Best Quarter (of periods shown)
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6/30/09
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16.70
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%
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Worst Quarter (of periods shown)
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12/31/08
|
-23.11
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%
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After-tax returns are calculated using the historical highest individual federal marginal income tax rates, and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. The after-tax returns shown are not relevant to you if you hold your Fund shares through a tax-deferred arrangement such as a 401(k) plan or individual retirement account. The return after taxes on distributions and sale of Fund shares may be higher than the return before taxes because the calculation assumes that shareholders receive a tax benefit for capital losses incurred on the sale of their shares.
SUMMARY PROSPECTUS OCTOBER 18, 2013
2
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Since
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Average Annual Total Returns
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|
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Inception
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(as of 12/31/12)
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1 Year
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5 Years
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(10/1/04
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)
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Class Y:
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Return before taxes
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15.29
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%
|
1.48
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%
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3.24
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%
|
|
Return after taxes on distributions
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14.58
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%
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1.35
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%
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3.16
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%
|
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Return after taxes on distributions
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10.89
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%
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1.26
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%
|
2.80
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%
|
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and sale of Fund shares
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|
|
|
|
|
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Russell 2000 Index
|
16.35
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%
|
3.56
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%
|
6.03
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%
|
|
(reflects no deduction for fees,
|
|
|
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|
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expenses or taxes)
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|
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Lipper Small-Cap Core Funds Avg.
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14.74
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%
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3.28
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%
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*
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(reflects no deduction for taxes)
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* The Fund is unable to show performance of the Lipper average since the Fund’s inception date. For comparison purposes to Lipper, performance since 10/31/04 is as follows: Class A return before taxes is 3.34%; Class A return after taxes on distributions is 3.25%; Class A return after taxes on distributions and sale of Fund shares is 2.88%; and Lipper Small-Cap Core Funds Average is 6.13%.
PORTFOLIO MANAGEMENT
Investment Advisor.
Calvert Investment Management, Inc. ("Calvert" or the "Advisor")
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Portfolio Manager
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Title
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Length of Time
|
|
Name
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Managing Fund
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Natalie A. Trunow
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Senior Vice President
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Since July 2010
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Chief Investment Officer –
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Equities, Calvert
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BUYING AND SELLING SHARES
You can buy, sell (redeem) or exchange shares of the Fund through a financial professional on any day that the New York Stock Exchange is open. The share price is based on the Fund’s net asset value, determined after receipt of your request in good order.
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Minimum Investments
|
|
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Account Type
|
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Initial
|
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Subsequent
|
|
Regular Accounts
|
$
|
2,000
|
$
|
250
|
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IRA Accounts
|
$
|
1,000
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$
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250
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For automatic investment plans, the minimum initial investment requirements are waived if you establish a $100 monthly investment plan. For an account that has met the minimum initial investment requirement described above, you may make subsequent automatic investments of $50.
The Fund may waive investment minimums and applicable service fees for certain investors.
To buy shares, contact your financial professional.
TAX INFORMATION
Unless you are investing through a tax-deferred arrangement, such as a 401(k) plan or an individual retirement account, any dividends and distributions made by the Fund are taxable to you as ordinary income or capital gains and may also be subject to state and local taxes.
PAYMENTS TO BROKER/DEALERS AND OTHER FINANCIAL INTERMEDIARIES
If you purchase shares of the Fund through a broker/dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker/dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary’s Web site for more information.
Investment Company Act file:
No. 811-10045 Calvert Impact Fund, Inc.
SUMMARY PROSPECTUS OCTOBER 18, 2013
3