On October 18, 2016, the Commission instituted and simultaneously settled administrative and cease-and-desist proceedings (the “Order”) against Calvert Investment Management, Inc. (the “Respondent”). In the Order, the Commission found that, between March 18, 2008 and October 18, 2011, the Respondent violated the federal securities laws when it misvalued the Toll Road Investors Partnership II, L.P., which, in turn, led the Calvert Funds to be priced at an incorrect net asset value (“NAV”). The Calvert Funds then executed shareholder transactions at the wrong NAV, and stated inaccurate performance figures. In addition, Calvert collected inflated asset-based fees. Separately, Calvert caused a violation of Section 17(a) of the Investment Company Act when, in July 2011, the Calvert Government Fund, a series of The Calvert Fund, engaged in a prohibited transaction in certain bonds issued by Toll Road Investors Partnership II, L.P. with another fund that Calvert sub-advised. The Commission ordered the Respondent to pay a $3,900,000.00 civil money penalty to the U.S. Treasury. The Order also provides that the Respondent is to make distributions to affected accountholders, no later than 360 days from the date of the Order, pursuant to the methodology detailed in the Order.

Tax compliance and any related administrative expenses are the responsibility of the Respondent. The Order requires that the Respondent submits to the Commission staff a final accounting and certification of the disposition of the monies paid within 90 days of effectuating the completion of the distribution. See the Commission’s Order: Release No. IA-4554.

For more information, please contact the Commission:

Office of Distributions
Email: ENFOfficeofDistributions@sec.gov