PERFORMANCE Average Annual Returns (%) for Period Ended 6/30/2014
  QTR YTD 1 YEAR 3 YEARS 5 YEARS 10 YEARS SINCE
INCEPTION
INCEPTION
DATE
I Shares 2.57 5.21 6.80 4.84 6.79 4.82 6.25 2/26/1999
Barclays U.S. Credit Index 2.71 5.70 7.44 5.88 7.65 5.85 6.20  
Lipper BBB-Rated Corporate Debt Funds Average 2.94 5.98 7.85 6.08 8.21 5.81 6.10  
Portfolio Statistics
  June 30, 2014
  Portfolio Benchmark
SEC Yield 2.98% -
12 Mth Distribution Yield 3.45% -
Duration 6.30 Yrs 6.89 Yrs
Weighted Avg Maturity 9.04 Yrs 10.12 Yrs
Weighted Avg Coupon 4.56% 4.58%
Weighted Avg Price 104.33 110.43
March 31, 2014
Portfolio Benchmark
2.97% -
3.42% -
6.22 Yrs 6.73 Yrs
9.03 Yrs 9.96 Yrs
4.50% 4.61%
103.03 108.73
December 31, 2013
Portfolio Benchmark
3.15% -
3.48% -
5.91 Yrs 6.58 Yrs
9.12 Yrs 9.78 Yrs
4.58% 4.65%
101.63 106.92
Returns Based Statistics (3 Year)
  June 30, 2014
  Portfolio Benchmark
Average Annual Return 4.83% 5.88%
Standard Deviation 3.72% 4.26%
Beta vs. Market 0.69 1.00
Excess Return -1.04% 0.00%
R-Squared 61.99% 100.00%
Tracking Error 2.65% 0.00%
Information Ratio -0.39 0.00
Sharpe Ratio 1.28 1.37
March 31, 2014
Portfolio Benchmark
4.36% 5.80%
3.79% 4.36%
0.69 1.00
-1.45% 0.00%
62.74% 100.00%
2.68% 0.00%
-0.54 0.00
1.13 1.32
December 31, 2013
Portfolio Benchmark
4.09% 5.11%
3.76% 4.29%
0.68 1.00
-1.02% 0.00%
60.08% 100.00%
2.75% 0.00%
-0.37 0.00
1.07 1.17
Performance Attribution (gross returns vs. passive benchmark) 2Q Quarter 2014
Total Effect Duration Effect Curve Effect Sector Effect Selection Effect
-5 -10 -5 2 8

In the second quarter, the fund underperformed its passive benchmark, the Barclays US Credit Index, by 5 basis points (bps). Its shorter-than-benchmark duration was the primary driver of underperformance with its underweight to the long end of the yield curve being an additional detractor. While its underweight to benchmark government-related sectors was a notable detractor, its overweight to out-of-benchmark securitized sectors more than offset this. During the quarter, longer maturity sovereigns and taxable municipal bonds outperformed the corporate sector by a significant margin, reversing a trend of significant underperformance in prior quarters. However, the fund's exposure to CMBS and ABS securities significantly outperformed all benchmark sectors, providing a boost to relative performance. The fund's opportunistic allocation to out-of-benchmark high yield credits also contributed positively.

Total effect:Aggregate or total active return, which is return relative to the passive benchmark (outperformance or underperformance).
Duration effect: Active return attributable to overall duration. (Duration measures a portfolio's sensitivity to changes in interest rates. Generally, the longer the duration, the greater the change in value in response to a given change in interest rates.) This measures the effect of a parallel shift either up or down in the entire yield curve.
Curve effect: Active return attributable to yield curve positioning. This measures the effects of a change in the shape of the yield curve (a non-parallel shift).
Sector effect:Active return attributable to sector selection.
Selection effect:Active return attributable to security selection (includes intra-day trading).

All fixed-income attribution measures are in basis points (one basis point is 0.01 percentage points).
Credit Quality
  June 30, 2014
  Portfolio Benchmark
Cash 0.42% -
Government 3.38% -
AAA/Aaa/AAA 1.22% 8.98%
AA/Aa/AA 6.24% 12.38%
A/A/A 31.06% 38.41%
BBB/Baa/BBB 42.83% 40.24%
BB/Ba/BB 7.40% -
B/B/B 4.36% -
CCC/Caa/CCC 1.39% -
CC/Ca/CC - -
CC/CC/CC - -
C/C/C - -
Not Rated 1.38% -
Equities - -
March 31, 2014
Portfolio Benchmark
0.62% -
4.88% -
1.43% 9.13%
6.99% 12.23%
29.13% 38.29%
44.89% 40.35%
6.20% -
3.21% -
1.38% -
- -
- -
- -
0.87% -
- -
December 31, 2013
Portfolio Benchmark
0.94% -
3.89% -
2.07% 8.76%
5.60% 12.35%
29.77% 38.45%
45.89% 40.44%
6.01% -
3.65% -
1.56% -
- -
- -
- -
0.63% -
- -
Sector Exposure
  June 30, 2014
  Portfolio Benchmark
Corporate 85.22% 78.93%
Government Related 1.01% 21.09%
Securitized 9.25% -
Treasury 3.21% -
Cash and Cash Equivalents 0.63% -
Other - -
Unknown - -
Municipals 0.69% -
March 31, 2014
Portfolio Benchmark
86.77% 78.67%
1.29% 21.33%
5.98% -
4.68% -
1.00% -
0.27% -
- -
- -
December 31, 2013
Portfolio Benchmark
89.55% 78.76%
0.91% 21.24%
4.38% -
3.70% -
1.19% -
0.25% -
- -
- -
Top Ten Holdings / Percentage of Net Assets
June 30, 2014
  % of Portf.
BANK OF AMERICA NA 1.91%
BNSF FUNDING TRUST I 1.74%
US TREASURY N/B 1.63%
ENTERPRISE PRODUCTS OPER 1.50%
GREAT RIVER ENERGY 1.37%
GOLDMAN SACHS GROUP INC 1.36%
VERIZON COMMUNICATIONS 1.32%
LAND O LAKES CAP TRST I 1.31%
PIONEER NATURAL RESOURCE 1.29%
JPMORGAN CHASE + CO 1.17%
Total 14.59%
March 31, 2014
  % of Portf.
GOLDMAN SACHS GROUP INC 1.94%
BANK OF AMERICA NA 1.87%
BNSF FUNDING TRUST I 1.70%
JPMORGAN CHASE + CO 1.50%
VERIZON COMMUNICATIONS 1.47%
ENTERPRISE PRODUCTS OPER 1.46%
GREAT RIVER ENERGY 1.32%
LAND O LAKES CAP TRST I 1.32%
JPMORGAN CHASE + CO 1.29%
PIONEER NATURAL RESOURCE 1.27%
Total 15.12%
December 31, 2013
  % of Portf.
GOLDMAN SACHS GROUP INC 1.87%
ENTERPRISE PRODUCTS OPER 1.86%
BANK OF AMERICA NA 1.80%
JPMORGAN CHASE + CO 1.79%
BNSF FUNDING TRUST I 1.74%
US BANK NA 1.69%
LAND O LAKES CAP TRST I 1.66%
GREAT RIVER ENERGY 1.26%
US TREASURY N/B 1.24%
PIONEER NATURAL RESOURCE 1.23%
Total 16.14%

Investment in mutual funds involves risk, including possible loss of principal invested. You could lose money on your investment in the Fund or the Fund could underperform because of the following risks: the market prices of bonds held by the Fund may fall; individual investments of the Fund may not perform as expected; and/or the Fund's portfolio management practices may not achieve the desired result. Bond funds are subject to interest rate risk and credit risk. When interest rates rise, the value of fixed-income securities will generally fall. In addition, the credit quality of the securities may deteriorate, which could lead to default or bankruptcy of the issuer where the issuer becomes unable to pay its obligations when due. Investments in high-yield, high risk bonds can involve a substantial risk of loss. An active trading style can result in higher turnover (exceeding 100%), may translate to higher transaction costs, may increase your tax liability, and may affect Fund performance. The Fund is non-diversified and may be more volatile than a diversified fund.

I800ATT FOR INSTITUTIONAL INVESTOR AND BROKER/DEALER USE ONLY. NOT FOR PUBLIC DISTRIBUTION.

Calvert mutual funds are underwritten and distributed by Calvert Investment Distributors, Inc., member, FINRA, and subsidiary of Calvert Investments, Inc. 800.368.2748

Calvert Investment Management, Inc. serves as the investment advisor and provides sustainability research for the Calvert mutual funds and institutional investment strategies.

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