Unlock the Potential of Cash Reserves: Turn to the #1 Lipper Ranked Ultra-Short Bond Fund: Five-year & since-inception periods
Rankings and Ratings
Five-year and since-inception periods
The Fund's Class A shares were ranked #1 among 52 funds for the since-inception time period, 19/88, 16/81, and 1/54 for the one-, three-, and five-year time periods, respectively as of 12/31/2012, in the Lipper Ultra-Short Obligations Funds category. Lipper rankings are based on total returns. (Fund inception 10/31/2006)1
For the Fund's Class A Shares (Load Waived), among 87 funds in the Morningstar Ultrashort Bond Category for the period ended 12/31/2012 based on risk-adjusted returns.2
Given today's historically low interest rates, yields on money market instruments and other cash alternatives can be a losing proposition on an inflation-adjusted basis. Calvert Ultra-Short Income Fund (CULAX) can provide the opportunity to earn higher-than-cash income with the potential for total return (albeit with some additional risk).
- Invests at least 65% of its net assets in investment grade U.S. dollar-denominated debt securities, with a focus on principal preservation.
- The Fund (Class A at NAV) provided over 175 basis points of excess return (annualized) with 44% less risk on average than comparable funds for the five-year period ended 12/31/2012. A basis point is 0.01 percentage point.
Higher Historical Returns with Lower Risk
The annual total return for the Calvert Ultra-Short Income Fund averaged 3.02% (1.25% for the Ultrashort Bond category) during the five-year period ended 12/31/2012. The Risk as measured by standard deviation* averaged 1.18% (vs. 2.11% for the Ultrashort Bond category) for the same period. Returns for CULAX represent the performance of Class A shares at NAV. Returns would have been lower if Class A sales charges were deducted. Past performance does not guarantee future results.
Source: Morningstar, Inc. Ultrashort Bond Funds are represented by the average of 80 domestic bond funds, categorized by Morningstar as Ultrashort Bond.
* Standard deviation measures the variability (volatility) of a portfolio based on historical returns. The higher the standard deviation, the greater the potential for volatility.
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Past performance is no guarantee of future results.
1 Source: Lipper, Inc. 2013. During the ranking periods, the Fund benefited from a fee waiver, which had a material effect on total return. Lipper rankings are based on total returns. Rankings assume reinvestment of dividends and capital gains but exclude the effects of any applicable sales loads. The Lipper ranking is for Class A, and the ranking may include more than one share class of funds in the category, including other share classes of the Fund. Rankings are relative peer group ratings and do not necessarily mean that the Fund had high total returns.
2 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 three and five stars among 87 and 80 funds, respectively, for the three- and five-year periods in the Morningstar Ultrashort Bond category for the period ended 12/31/2012. 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. The Fund is 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 fixed-income securities may deteriorate, which could lead to default or bankruptcy of the issuer where the issuer becomes unable to pay its obligations when due. Because a significant portion of securities held by the Fund may have variable or floating interest rates, the amount of the Fund's monthly distributions to shareholders is expected to vary with fluctuations in market interest rates. Generally, when market interest rates fall, the amount of the distributions will likewise decrease. The Fund is non-diversified and may be more volatile than a diversified fund. There is also a risk that the Fund's portfolio management practices may not achieve the desired result.