UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number: 811-10045
CALVERT IMPACT FUND, INC.
(Exact Name of Registrant as Specified in Charter)
1825 Connecticut Avenue NW, Suite 400, Washington, DC 20009
(Address of Principal Executive Offices)
Deidre E. Walsh
Two International Place, Boston, Massachusetts 02110
(Name and Address of Agent for Services)
(202) 238-2200
(Registrant’s Telephone Number)
September 30
Date of Fiscal Year End
September 30, 2021
Date of Reporting Period
Item 1. Reports to Stockholders
Calvert
Small-Cap Fund
Annual Report
September 30, 2021
Commodity Futures Trading Commission Registration. The Commodity Futures Trading Commission (“CFTC”) has adopted regulations that subject registered investment companies and advisers to regulation by the CFTC if a fund invests more than a
prescribed level of its assets in certain CFTC-regulated instruments (including futures, certain options and swap agreements) or markets itself as providing investment exposure to such instruments. The adviser has claimed an exclusion from the
definition of “commodity pool operator” under the Commodity Exchange Act with respect to its management of the Fund and the other funds it manages. Accordingly, neither the Fund nor the adviser is subject to CFTC regulation.
Fund shares are not insured by the FDIC and are not deposits or
other obligations of, or guaranteed by, any depository institution. Shares are subject to investment risks, including possible loss of principal invested.
This report must be preceded or accompanied by a current
summary prospectus or prospectus. Before investing, investors should consider carefully the investment objective, risks, and charges and expenses of a mutual fund. This and other important information is contained in the summary prospectus and
prospectus, which can be obtained from a financial intermediary. Prospective investors should read the prospectus carefully before investing. For further information, please call 1-800-368-2745.
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Annual Report September 30, 2021
Calvert
Small-Cap Fund
Calvert
Small-Cap Fund
September 30, 2021
Management's Discussion of Fund Performance†
Economic and Market Conditions
The 12-month period that began October 1, 2020 was notable for
an equity rally that began in November 2020, paused in January 2021, and then continued through the following summer. In the final month of the period, however, negative economic news overwhelmed the investor optimism that had driven markets for
much of the period. In September 2021, the broad-market S&P 500® Index endured its worst month since March 2020, and many other U.S. indexes declined as well.
Nonetheless, for the period as a whole, broad U.S. indexes
generally posted strong double-digit returns as investors cheered the reopening of businesses that had been affected by the COVID-19 pandemic and the rollout of several highly effective vaccines.
The virus, however, continued to have a firm grip on the U.S.
and global economies. Disease rates advanced and declined with third and fourth waves of COVID infections. Worker shortages led to global supply chain issues. From computer chips to shipping containers, scarcities of key items led to temporary
factory shutdowns, empty store shelves, and car dealerships short of vehicles to sell. Those shortages — combined with high demand from consumers eager to spend money they had saved earlier in the pandemic — led to higher year-over-year
inflation than the U.S. economy had seen in years. Although U.S. Federal Reserve (the Fed) Chairman Jerome Powell and U.S. Treasury Secretary Janet Yellen expressed the view that inflation would likely be transitory, inflation nonetheless became a
key concern for investors during the period.
While the
last month of the period began auspiciously — with both the S&P 500® Index and Nasdaq Composite Index closing at all-time highs in the first days of September
— the news for investors quickly turned negative. The U.S. Labor Department’s release of August job numbers showed that only 235,000 jobs had been created — a significant slowdown from earlier in the summer. COVID-19 infections
rose again across the U.S. After its September meeting, the Fed indicated it might start to taper its bond purchases — which had stimulated the economy earlier — and possibly raise interest rates in 2022, a year sooner than it had
previously projected. This combination of factors led investors to abandon — at least temporarily — the optimistic attitude that had driven stock prices upward during most of the period.
Despite a rough September, major U.S. indexes delivered
double-digit returns for the one-year period as a whole. The S&P 500® Index, a broad measure of U.S. stocks, returned 30.00%; the blue-chip Dow Jones Industrial Average® was up 24.15%; and the technology-laden Nasdaq Composite Index rose 30.26%. Large-cap U.S. stocks, as measured by the Russell 1000® Index, underperformed their small-cap counterparts, as measured by the Russell 2000® Index, and
value stocks outperformed growth stocks across the market-cap spectrum during the period.
Fund Performance
For the 12-month period ended September 30, 2021, Calvert
Small-Cap Fund (the Fund) returned 38.43% for Class A shares at net asset value (NAV), underperforming its benchmark, the Russell 2000® Index (the Index), which returned
47.68%.
Stock selection overall was the largest detractor
from performance relative to the Index. Selections in the industrials, financials, and consumer staples sectors in particular weakened relative returns during the period. An underweight exposure to energy, the strongest performing sector within the
Index, also hurt relative performance. An underweight exposure to health care, one of the weakest-performing sectors within the Index, contributed to relative returns.
Mercury Systems, Inc. is a commercial technology company
serving the aerospace & defense industry. The stock underperformed as investors anticipated reduced defense spending under the Biden administration. However, the Fund maintained its position in the company during the period.
Within the health care equipment & supplies industry,
Haemonetics Corp. develops and distributes hematology products. Share prices of the company dropped sharply after a key customer decided not to renew its plasma collection contract. By period-end, the stock was sold from the Fund. Emergent
BioSolutions, Inc. (Emergent), a biotechnology company targeting public health threats, partnered with Johnson & Johnson (J&J) and AstraZeneca to manufacture COVID-19 vaccines. The stock price of Emergent was weakened by manufacturing
setbacks with J&J’s vaccine. By period-end, Emergent was sold from the Fund.
Among contributors to Fund performance relative to the Index
during the period, First Citizens BancShares, Inc. (First Citizens) provides banking services to retail and commercial customers. During the period, First Citizens’ share price rose more than 100% after it announced a merger with CIT Group,
Inc. By period-end, First Citizens was sold from the Fund.
The share price of Ambarella, Inc., a developer of
semiconductors for high-definition video, surged after the company reported better-than-
expected revenue and earnings. The share price of Tempur Sealy International, Inc., a manufacturer of mattresses and pillows, rose on strong earnings growth, improved efficiency, and continued high demand for home products as consumers remained more home-focused than normal during the period because of the pandemic.
expected revenue and earnings. The share price of Tempur Sealy International, Inc., a manufacturer of mattresses and pillows, rose on strong earnings growth, improved efficiency, and continued high demand for home products as consumers remained more home-focused than normal during the period because of the pandemic.
See Endnotes and Additional Disclosures in this report.
Past performance is no guarantee of future results. Returns are historical and
are calculated by determining the percentage change in net asset value (NAV) or offering price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. Performance for periods less than or equal to one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return.
For performance as of the most recent month-end, please refer to www.calvert.com.
2
Calvert
Small-Cap Fund
September 30, 2021
Performance
Portfolio Managers Michael D.
McLean, CFA and J. Griffith Noble, CFA, each of Calvert Research and Management
| % Average Annual Total Returns1,2 | Class
Inception Date |
Performance
Inception Date |
One Year | Five Years | Ten Years |
| Class A at NAV | 10/01/2004 | 10/01/2004 | 38.43% | 13.57% | 14.60% |
| Class A with 4.75% Maximum Sales Charge | — | — | 31.87 | 12.47 | 14.04 |
| Class C at NAV | 04/01/2005 | 10/01/2004 | 37.35 | 12.72 | 13.70 |
| Class C with 1% Maximum Sales Charge | — | — | 36.35 | 12.72 | 13.70 |
| Class I at NAV | 04/29/2005 | 10/01/2004 | 38.73 | 13.93 | 15.12 |
| Class R6 at NAV | 02/01/2019 | 10/01/2004 | 38.83 | 13.97 | 15.14 |
|
| |||||
| Russell 2000® Index | — | — | 47.68% | 13.44% | 14.62% |
| % Total Annual Operating Expense Ratios3 | Class A | Class C | Class I | Class R6 |
| Gross | 1.22% | 1.97% | 0.97% | 0.91% |
| Net | 1.21 | 1.96 | 0.96 | 0.90 |
Growth of $10,000
This graph shows the change in value of a hypothetical
investment of $10,000 in Class A of the Fund for the period indicated. For comparison, the same investment is shown in the indicated index.
| Growth of Investment2 | Amount Invested | Period Beginning | At NAV | With Maximum Sales Charge |
| Class C | $10,000 | 09/30/2011 | $36,142 | N.A. |
| Class I | $250,000 | 09/30/2011 | $1,023,604 | N.A. |
| Class R6 | $1,000,000 | 09/30/2011 | $4,101,092 | N.A. |
See Endnotes and Additional Disclosures in this report.
Past performance is no guarantee of future results. Returns are historical and
are calculated by determining the percentage change in net asset value (NAV) or offering price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. Performance for periods less than or equal to one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return.
For performance as of the most recent month-end, please refer to www.calvert.com.
3
Calvert
Small-Cap Fund
September 30, 2021
Fund Profile
See Endnotes and Additional Disclosures in this report.
4
Calvert
Small-Cap Fund
September 30, 2021
Fund Expenses
Example
As a Fund shareholder, you incur two types of costs: (1)
transaction costs, including sales charges (loads) on purchases and redemption fees (if applicable); and (2) ongoing costs, including management fees; distribution and/or service fees; and other Fund expenses. This Example is intended to help you
understand your ongoing costs (in dollars) of Fund investing and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for
the entire period (April 1, 2021 to September 30, 2021).
Actual Expenses
The first section of the table below provides information about
actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second section of the table below provides information
about hypothetical account values and hypothetical expenses based on the actual Fund expense ratio and an assumed rate of return of 5% per year (before expenses), which is not the actual Fund return. The hypothetical account values and expenses may
not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with
the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to
highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption fees (if applicable). Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help
you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would be higher.
| Beginning
Account Value (4/1/21) |
Ending
Account Value (9/30/21) |
Expenses
Paid During Period* (4/1/21 – 9/30/21) |
Annualized
Expense Ratio | |
| Actual | ||||
| Class A | $1,000.00 | $1,015.30 | $6.01 | 1.19% |
| Class C | $1,000.00 | $1,011.30 | $9.78 | 1.94% |
| Class I | $1,000.00 | $1,016.40 | $4.80 | 0.95% |
| Class R6 | $1,000.00 | $1,016.90 | $4.30 | 0.85% |
| Hypothetical | ||||
| (5% return per year before expenses) | ||||
| Class A | $1,000.00 | $1,019.10 | $6.02 | 1.19% |
| Class C | $1,000.00 | $1,015.34 | $9.80 | 1.94% |
| Class I | $1,000.00 | $1,020.31 | $4.81 | 0.95% |
| Class R6 | $1,000.00 | $1,020.81 | $4.31 | 0.85% |
| * | Expenses are equal to the Fund's annualized expense ratio for the indicated Class, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period). The Example assumes that the $1,000 was invested at the net asset value per share determined at the close of business on March 31, 2021. |
6
Calvert
Small-Cap Fund
September 30, 2021
Schedule of
Investments
7
See Notes to Financial Statements.
Calvert
Small-Cap Fund
September 30, 2021
Schedule of
Investments — continued
8
See Notes to Financial Statements.
Calvert
Small-Cap Fund
September 30, 2021
Schedule of
Investments — continued
Restricted Securities
| Description | Acquisition Dates | Cost |
| Calvert Impact Capital, Inc., Community Investment Notes, 1.50%, 12/15/23 | 12/14/20 | $2,520,000 |
| ImpactAssets, Inc., Global Sustainable Agriculture Notes, 0.00%, 11/3/22 | 11/13/15 | 152,000 |
| ImpactAssets, Inc., Microfinance Plus Notes, 0.00%, 11/3/22 | 11/13/15 | 195,000 |
9
See Notes to Financial Statements.
Calvert
Small-Cap Fund
September 30, 2021
Statement of Assets
and Liabilities
| September 30, 2021 | |
| Assets | |
| Investments
in securities of unaffiliated issuers, at value (identified cost $2,282,036,151) - including $6,224,576 of securities on loan |
$ 2,754,575,983 |
| Investments in securities of affiliated issuers, at value (identified cost $46,205,527) | 46,166,627 |
| Cash | 12,884,075 |
| Receivable for investments sold | 10,926,034 |
| Receivable for capital shares sold | 9,235,709 |
| Dividends and interest receivable | 2,501,832 |
| Dividends and interest receivable - affiliated | 32,132 |
| Securities lending income receivable | 804 |
| Directors' deferred compensation plan | 291,418 |
| Total assets | $2,836,614,614 |
| Liabilities | |
| Payable for investments purchased | $ 24,512,863 |
| Payable for capital shares redeemed | 2,901,506 |
| Deposits for securities loaned | 1,804,401 |
| Payable to affiliates: | |
| Investment advisory fee | 1,589,551 |
| Administrative fee | 280,509 |
| Distribution and service fees | 87,660 |
| Sub-transfer agency fee | 18,744 |
| Directors' deferred compensation plan | 291,418 |
| Accrued expenses | 702,506 |
| Total liabilities | $ 32,189,158 |
| Net Assets | $2,804,425,456 |
| Sources of Net Assets | |
| Paid-in capital | $ 2,148,906,430 |
| Distributable earnings | 655,519,026 |
| Total | $2,804,425,456 |
| Class A Shares | |
| Net Assets | $ 288,922,204 |
| Shares Outstanding | 8,718,977 |
| Net
Asset Value and Redemption Price Per Share (net assets ÷ shares of beneficial interest outstanding) |
$ 33.14 |
| Maximum
Offering Price Per Share (100 ÷ 95.25 of net asset value per share) |
$ 34.79 |
| Class C Shares | |
| Net Assets | $ 32,595,529 |
| Shares Outstanding | 1,170,727 |
| Net
Asset Value and Offering Price Per Share* (net assets ÷ shares of beneficial interest outstanding) |
$ 27.84 |
| Class I Shares | |
| Net Assets | $ 2,398,218,908 |
| Shares Outstanding | 66,574,237 |
| Net
Asset Value, Offering Price and Redemption Price Per Share (net assets ÷ shares of beneficial interest outstanding) |
$ 36.02 |
10
See Notes to Financial Statements.
Calvert
Small-Cap Fund
September 30, 2021
Statement of Assets
and Liabilities — continued
| September 30, 2021 | |
| Class R6 Shares | |
| Net Assets | $84,688,815 |
| Shares Outstanding | 2,349,032 |
| Net
Asset Value, Offering Price and Redemption Price Per Share (net assets ÷ shares of beneficial interest outstanding) |
$ 36.05 |
| On sales of $50,000 or more, the offering price of Class A shares is reduced. | |
| * | Redemption price per share is equal to the net asset value less any applicable contingent deferred sales charge. |
11
See Notes to Financial Statements.
Calvert
Small-Cap Fund
September 30, 2021
Statement of
Operations
| Year Ended | |
| September 30, 2021 | |
| Investment Income | |
| Dividend income (net of foreign taxes withheld of $1,917) | $ 23,054,049 |
| Dividend income - affiliated issuers | 21,293 |
| Interest income | 984 |
| Interest income - affiliated issuers | 37,891 |
| Securities lending income, net | 65,520 |
| Total investment income | $ 23,179,737 |
| Expenses | |
| Investment advisory fee | $ 16,194,496 |
| Administrative fee | 2,857,853 |
| Distribution and service fees: | |
| Class A | 658,820 |
| Class C | 275,522 |
| Directors' fees and expenses | 100,334 |
| Custodian fees | 42,552 |
| Transfer agency fees and expenses | 2,144,809 |
| Accounting fees | 443,069 |
| Professional fees | 70,592 |
| Registration fees | 272,512 |
| Reports to shareholders | 189,120 |
| Miscellaneous | 66,085 |
| Total expenses | $ 23,315,764 |
| Net investment loss | $ (136,027) |
| Realized and Unrealized Gain (Loss) | |
| Net realized gain (loss): | |
| Investment securities | $ 238,415,998 |
| Investment securities - affiliated issuers | (2,399) |
| Net realized gain | $238,413,599 |
| Change in unrealized appreciation (depreciation): | |
| Investment securities | $ 380,025,251 |
| Investment securities - affiliated issuers | (25,833) |
| Net change in unrealized appreciation (depreciation) | $379,999,418 |
| Net realized and unrealized gain | $618,413,017 |
| Net increase in net assets from operations | $618,276,990 |
12
See Notes to Financial Statements.
Calvert
Small-Cap Fund
September 30, 2021
Statements of
Changes in Net Assets
| Year Ended September 30, | ||
| 2021 | 2020 | |
| Increase (Decrease) in Net Assets | ||
| From operations: | ||
| Net investment income (loss) | $ (136,027) | $ 1,595,996 |
| Net realized gain (loss) | 238,413,599 | (37,030,670) |
| Net change in unrealized appreciation (depreciation) | 379,999,418 | 22,960,899 |
| Net increase (decrease) in net assets from operations | $ 618,276,990 | $ (12,473,775) |
| Distributions to shareholders: | ||
| Class A | $ — | $ (2,242,958) |
| Class C | — | (200,001) |
| Class I | (2,198,171) | (7,919,039) |
| Class R6 | (92,105) | (509,400) |
| Total distributions to shareholders | $ (2,290,276) | $ (10,871,398) |
| Capital share transactions: | ||
| Class A | $ 29,601,756 | $ 23,635,745 |
| Class C | 8,858,899 | 3,231,774 |
| Class I | 670,027,418 | 761,543,484 |
| Class R6 | 22,140,747 | 9,673,290 |
| Net increase in net assets from capital share transactions | $ 730,628,820 | $ 798,084,293 |
| Net increase in net assets | $1,346,615,534 | $ 774,739,120 |
| Net Assets | ||
| At beginning of year | $ 1,457,809,922 | $ 683,070,802 |
| At end of year | $2,804,425,456 | $1,457,809,922 |
13
See Notes to Financial Statements.
Calvert
Small-Cap Fund
September 30, 2021
Financial
Highlights
| Class A | |||||
| Year Ended September 30, | |||||
| 2021 | 2020 | 2019 | 2018 | 2017 | |
| Net asset value — Beginning of year | $ 23.94 | $ 25.35 | $ 26.61 | $ 25.70 | $ 21.76 |
| Income (Loss) From Operations | |||||
| Net investment income (loss)(1) | $ (0.07) | $ (0.01) | $ 0.02 | $ (0.04) | $ (0.05) |
| Net realized and unrealized gain (loss) | 9.27 | (1.08) | (0.04) (2) | 4.34 | 4.32 |
| Total income (loss) from operations | $ 9.20 | $ (1.09) | $ (0.02) | $ 4.30 | $ 4.27 |
| Less Distributions | |||||
| From net investment income | $ — | $ — | $ — | $ —(3) | $ — |
| From net realized gain | — | (0.32) | (1.24) | (3.39) | (0.33) |
| Total distributions | $ — | $ (0.32) | $ (1.24) | $ (3.39) | $ (0.33) |
| Net asset value — End of year | $ 33.14 | $ 23.94 | $ 25.35 | $ 26.61 | $ 25.70 |
| Total Return(4) | 38.43% | (4.38)% | 0.61% | 18.55% | 19.74% |
| Ratios/Supplemental Data | |||||
| Net assets, end of year (000’s omitted) | $288,922 | $185,777 | $172,277 | $158,921 | $137,860 |
| Ratios (as a percentage of average daily net assets):(5) | |||||
| Total expenses | 1.19% | 1.22% | 1.25% | 1.28% | 1.36% |
| Net expenses | 1.19% | 1.21% | 1.23% | 1.28% | 1.36% |
| Net investment income (loss) | (0.21)% | (0.03)% | 0.07% | (0.17)% | (0.22)% |
| Portfolio Turnover | 53% | 44% | 45% | 51% | 137% |
| (1) | Computed using average shares outstanding. |
| (2) | The per share amount is not in accord with the net realized and unrealized gain (loss) for the period because of the timing of Fund share transactions and the amount of the per share realized and unrealized gains and losses at such time. |
| (3) | Amount is less than $0.005. |
| (4) | Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested and do not reflect the effect of sales charges, if any. |
| (5) | Total expenses do not reflect amounts reimbursed and/or waived by the adviser and certain of its affiliates, if applicable. Net expenses are net of all reductions and represent the net expenses paid by the Fund. |
14
See Notes to Financial Statements.
Calvert
Small-Cap Fund
September 30, 2021
Financial
Highlights — continued
| Class C | |||||
| Year Ended September 30, | |||||
| 2021 | 2020 | 2019 | 2018 | 2017 | |
| Net asset value — Beginning of year | $ 20.27 | $ 21.63 | $ 22.90 | $ 22.58 | $ 19.30 |
| Income (Loss) From Operations | |||||
| Net investment loss(1) | $ (0.26) | $ (0.16) | $ (0.14) | $ (0.20) | $ (0.21) |
| Net realized and unrealized gain (loss) | 7.83 | (0.92) | (0.04) (2) | 3.77 | 3.82 |
| Total income (loss) from operations | $ 7.57 | $ (1.08) | $ (0.18) | $ 3.57 | $ 3.61 |
| Less Distributions | |||||
| From net realized gain | $ — | $ (0.28) | $ (1.09) | $ (3.25) | $ (0.33) |
| Total distributions | $ — | $ (0.28) | $ (1.09) | $ (3.25) | $ (0.33) |
| Net asset value — End of year | $ 27.84 | $ 20.27 | $ 21.63 | $ 22.90 | $ 22.58 |
| Total Return(3) | 37.35% | (5.10)% | (0.12)% | 17.66% | 18.82% |
| Ratios/Supplemental Data | |||||
| Net assets, end of year (000’s omitted) | $32,596 | $16,992 | $14,775 | $18,945 | $16,691 |
| Ratios (as a percentage of average daily net assets):(4) | |||||
| Total expenses | 1.94% | 1.97% | 2.01% | 2.03% | 2.22% |
| Net expenses | 1.94% | 1.96% | 1.99% | 2.03% | 2.12% |
| Net investment loss | (0.97)% | (0.78)% | (0.68)% | (0.91)% | (0.99)% |
| Portfolio Turnover | 53% | 44% | 45% | 51% | 137% |
| (1) | Computed using average shares outstanding. |
| (2) | The per share amount is not in accord with the net realized and unrealized gain (loss) for the period because of the timing of Fund share transactions and the amount of the per share realized and unrealized gains and losses at such time. |
| (3) | Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested and do not reflect the effect of sales charges, if any. |
| (4) | Total expenses do not reflect amounts reimbursed and/or waived by the adviser and certain of its affiliates, if applicable. Net expenses are net of all reductions and represent the net expenses paid by the Fund. |
15
See Notes to Financial Statements.
Calvert
Small-Cap Fund
September 30, 2021
Financial
Highlights — continued
| Class I | |||||
| Year Ended September 30, | |||||
| 2021 | 2020 | 2019 | 2018 | 2017 | |
| Net asset value — Beginning of year | $ 26.00 | $ 27.49 | $ 28.73 | $ 27.51 | $ 23.18 |
| Income (Loss) From Operations | |||||
| Net investment income(1) | $ 0.01 | $ 0.06 | $ 0.09 | $ 0.05 | $ 0.06 |
| Net realized and unrealized gain (loss) | 10.05 | (1.17) | (0.02) (2) | 4.67 | 4.62 |
| Total income (loss) from operations | $ 10.06 | $ (1.11) | $ 0.07 | $ 4.72 | $ 4.68 |
| Less Distributions | |||||
| From net investment income | $ (0.04) | $ (0.05) | $ (0.06) | $ (0.08) | $ (0.02) |
| From net realized gain | — | (0.33) | (1.25) | (3.42) | (0.33) |
| Total distributions | $ (0.04) | $ (0.38) | $ (1.31) | $ (3.50) | $ (0.35) |
| Net asset value — End of year | $ 36.02 | $ 26.00 | $ 27.49 | $ 28.73 | $ 27.51 |
| Total Return(3) | 38.73% | (4.12)% | 0.92% | 18.92% | 20.29% |
| Ratios/Supplemental Data | |||||
| Net assets, end of year (000’s omitted) | $2,398,219 | $1,211,029 | $461,237 | $257,089 | $93,724 |
| Ratios (as a percentage of average daily net assets):(4) | |||||
| Total expenses | 0.94% | 0.97% | 1.00% | 1.04% | 0.92% |
| Net expenses | 0.94% | 0.96% | 0.95% | 0.92% | 0.90% |
| Net investment income | 0.03% | 0.22% | 0.34% | 0.19% | 0.23% |
| Portfolio Turnover | 53% | 44% | 45% | 51% | 137% |
| (1) | Computed using average shares outstanding. |
| (2) | The per share amount is not in accord with the net realized and unrealized gain (loss) for the period because of the timing of Fund share transactions and the amount of the per share realized and unrealized gains and losses at such time. |
| (3) | Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested and do not reflect the effect of sales charges, if any. |
| (4) | Total expenses do not reflect amounts reimbursed and/or waived by the adviser and certain of its affiliates, if applicable. Net expenses are net of all reductions and represent the net expenses paid by the Fund. |
16
See Notes to Financial Statements.
Calvert
Small-Cap Fund
September 30, 2021
Financial
Highlights — continued
| Class R6 | |||
| Year Ended September 30, | Period
Ended September 30, | ||
| 2021 | 2020 | 2019 (1) | |
| Net asset value — Beginning of period | $ 26.01 | $ 27.50 | $ 24.93 |
| Income (Loss) From Operations | |||
| Net investment income(2) | $ 0.04 | $ 0.07 | $ 0.07 |
| Net realized and unrealized gain (loss) | 10.05 | (1.16) | 2.50 |
| Total income (loss) from operations | $ 10.09 | $ (1.09) | $ 2.57 |
| Less Distributions | |||
| From net investment income | $ (0.05) | $ (0.07) | $ — |
| From net realized gain | — | (0.33) | — |
| Total distributions | $ (0.05) | $ (0.40) | $ — |
| Net asset value — End of period | $ 36.05 | $ 26.01 | $ 27.50 |
| Total Return(3) | 38.83% | (4.07)% | 10.31% (4) |
| Ratios/Supplemental Data | |||
| Net assets, end of period (000’s omitted) | $84,689 | $44,012 | $34,782 |
| Ratios (as a percentage of average daily net assets):(5) | |||
| Total expenses | 0.86% | 0.91% | 0.93% (6) |
| Net expenses | 0.86% | 0.90% | 0.90% (6) |
| Net investment income | 0.11% | 0.28% | 0.37% (6) |
| Portfolio Turnover | 53% | 44% | 45% (7) |
| (1) | For the period from the commencement of operations, February 1, 2019, to September 30, 2019. |
| (2) | Computed using average shares outstanding. |
| (3) | Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested and do not reflect the effect of sales charges, if any. |
| (4) | Not annualized. |
| (5) | Total expenses do not reflect amounts reimbursed and/or waived by the adviser and certain of its affiliates, if applicable. Net expenses are net of all reductions and represent the net expenses paid by the Fund. |
| (6) | Annualized. |
| (7) | For the year ended September 30, 2019. |
17
See Notes to Financial Statements.
Calvert
Small-Cap Fund
September 30, 2021
Notes to Financial
Statements
1 Significant Accounting Policies
Calvert Small-Cap Fund (the Fund) is a diversified series of
Calvert Impact Fund, Inc. (the Corporation). The Corporation is a Maryland business corporation registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company. The investment objective of
the Fund is to seek to provide long-term capital appreciation through investment primarily in small-cap common stocks of U.S. companies.
The Fund offers four classes of shares. Class A shares are
generally sold subject to a sales charge imposed at time of purchase. A contingent deferred sales charge of 0.80% may apply to certain redemptions of Class A shares for accounts for which no sales charge was paid, if redeemed within 12 months of
purchase. Class C shares are sold without a front-end sales charge, and with certain exceptions, are charged a contingent deferred sales charge of 1% on shares redeemed within 12 months of purchase. Class C shares are only available for purchase
through a financial intermediary. Effective January 25, 2019, Class C shares generally automatically convert to Class A shares ten years after their purchase and, effective November 5, 2020, automatically convert to Class A shares eight years after
their purchase as described in the Fund's prospectus. Class I and Class R6 shares are sold at net asset value, are not subject to a sales charge and are sold only to certain eligible investors. Each class represents a pro rata interest in the Fund,
but votes separately on class-specific matters and is subject to different expenses.
The Fund applies the accounting and reporting guidance in the
Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services – Investment Companies (ASC 946). Subsequent events, if any, through the date that the
financial statements were issued have been evaluated in the preparation of the financial statements.
A Investment
Valuation— Net asset value per share is determined every business day as of the close of the regular session of the New York Stock Exchange (generally 4:00 p.m. Eastern time).
The Fund uses independent pricing services approved by the Board of Directors (the Board) to value its investments wherever possible. Investments for which market quotations are not available or deemed not reliable are fair valued in good faith
under the direction of the Board.
U.S. generally
accepted accounting principles (U.S. GAAP) establishes a disclosure hierarchy that categorizes the inputs to valuation techniques used to value assets and liabilities at measurement date. These inputs are summarized in the three broad levels listed
below:
Level 1 - quoted prices in active markets for
identical securities
Level 2 - other significant
observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
Level 3 - significant unobservable inputs (including the
Fund’s own assumptions in determining the fair value of investments)
The inputs or methodologies used for valuing securities are not
necessarily an indication of the risk associated with investing in those securities.
Valuation techniques used to value the Fund’s investments
by major category are as follows:
Equity Securities. Equity securities (including warrants and rights) listed on a U.S. securities exchange generally are valued at the last sale or closing price as reported by an independent pricing service on the primary market or
exchange on which they are traded and are categorized as Level 1 in the hierarchy. Equity securities listed on the NASDAQ National Market System are valued at the NASDAQ official closing price and are categorized as Level 1 in the hierarchy.
Unlisted or listed securities for which closing sales prices or closing quotations are not available are valued at the mean between the latest available bid and ask prices and are categorized as Level 2 in the hierarchy.
Debt Securities. Debt
securities are generally valued based on valuations provided by third party pricing services, as derived from such services’ pricing models. Inputs to the models may include, but are not limited to, reported trades, executable bid and ask
prices, broker/dealer quotations, prices or yields of securities with similar characteristics, interest rates, anticipated prepayments, benchmark curves or information pertaining to the issuer, as well as industry and economic events. Accordingly,
debt securities are generally categorized as Level 2 in the hierarchy. Short-term debt securities with a remaining maturity at time of purchase of more than sixty days are valued based on valuations provided by a third party pricing service. Such
securities are generally categorized as Level 2 in the hierarchy. Short-term debt securities of sufficient credit quality purchased with remaining maturities of sixty days or less for which a valuation from a third party pricing service is not
readily available may be valued at amortized cost, which approximates fair value, and are categorized as Level 2 in the hierarchy.
Affiliated Fund. The Fund may
invest in Calvert Cash Reserves Fund, LLC (Cash Reserves Fund), an affiliated investment company managed by Calvert Research and Management (CRM). While Cash Reserves Fund is not a registered money market mutual fund, it conducts all of its
investment activities in accordance with the requirements of Rule 2a-7 under the 1940 Act. Investments in Cash Reserves Fund are valued at the closing net asset value per unit on the valuation day and are categorized as Level 2 in the hierarchy.
Cash Reserves Fund generally values its investment securities based on available market quotations provided by a third party pricing service.
Other Securities. Investments
in registered investment companies (including money market funds) that do not trade on an exchange are valued at the net asset value per share on the valuation day and are categorized as Level 1 in the hierarchy.
Fair Valuation. If a market
value cannot be determined for a security using the methodologies described above, or if, in the good faith opinion of the Fund's adviser, the market value does not constitute a readily available market quotation, or if a significant event has
occurred that would materially affect the value of the security, the security will be fair valued as determined in good faith by or at the direction of the Board in a manner that most fairly reflects the
18
Calvert
Small-Cap Fund
September 30, 2021
Notes to Financial
Statements — continued
security’s
“fair value”, which is the amount that the Fund might reasonably expect to receive for the security upon its current sale in the ordinary course. Each such determination is based on a consideration of relevant factors, which are likely
to vary from one pricing context to another. These factors may include, but are not limited to, the type of security, the existence of any contractual restrictions on the security’s disposition, the price and extent of public trading in
similar securities of the issuer or of comparable companies or entities, quotations or relevant information obtained from broker/dealers or other market participants, information obtained from the issuer, analysts, and/or the appropriate stock
exchange (for exchange-traded securities), an analysis of the company’s or entity’s financial statements, and an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold.
The values assigned to fair value investments are based on
available information and do not necessarily represent amounts that might ultimately be realized. Further, due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have
been used had an active market existed, and the differences could be material.
The following table summarizes the market value of the Fund's
holdings as of September 30, 2021, based on the inputs used to value them:
| Asset Description | Level 1 | Level 2 | Level 3 | Total |
| Common Stocks | $ 2,752,448,564(1) | $ — | $ — | $ 2,752,448,564 |
| High Social Impact Investments | — | 2,799,750 | — | 2,799,750 |
| Short-Term Investments: | ||||
| Affiliated Fund | — | 43,689,895 | — | 43,689,895 |
| Securities Lending Collateral | 1,804,401 | — | — | 1,804,401 |
| Total Investments | $2,754,252,965 | $46,489,645 | $ — | $2,800,742,610 |
| (1) | The level classification by major category of investments is the same as the category presentation in the Schedule of Investments. |
B Investment Transactions and Income— Investment transactions for financial statement purposes are accounted for on trade date. Realized gains and losses are recorded on an identified cost basis and may include
proceeds from litigation. Dividend income is recorded on the ex-dividend date for dividends received in cash and/or securities or, in
the case of dividends on certain foreign securities, as soon as the Fund is informed of the ex-dividend date. Non-cash dividends are
recorded at the fair value of the securities received. Withholding taxes on foreign dividends, if any, have been provided for in
accordance with the Fund's understanding of the applicable country’s tax rules and rates. Distributions received that represent
a return of capital are recorded as a reduction of cost of investments. Distributions received that represent a capital gain are recorded as a realized gain. Interest income, which includes amortization of premium and accretion of discount on debt securities, is accrued as earned.
C Share Class Accounting— Realized and unrealized gains and losses and net investment income and losses, other than class-specific expenses, are allocated daily to each class of shares based upon the
relative net assets of each class to the total net assets of the Fund. Expenses arising in connection with a specific class are charged directly to that class. Sub-accounting, recordkeeping and similar administrative fees payable to financial intermediaries, which are a component of transfer agency fees and expenses on the Statement of Operations, are not allocated to Class R6
shares.
D Restricted Securities— The Fund may invest in securities that are subject to legal or contractual restrictions on resale. Generally, these securities may only be sold publicly upon registration under
the Securities Act of 1933 or in transactions exempt from such registration. Information regarding restricted securities (excluding Rule 144A securities) is included at the end of the Schedule of Investments.
E Distributions to Shareholders— Distributions to shareholders are recorded by the Fund on ex-dividend date. Distributions from net investment income and distributions from net realized capital gains, if any, are
paid at least annually. Distributions are declared separately for each class of shares. Distributions are determined in accordance with income tax regulations, which may differ from U.S. GAAP; accordingly, periodic reclassifications are made within
the Fund's capital accounts to reflect income and gains available for distribution under income tax regulations.
F Estimates— The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.
G
Indemnifications— The Corporation’s By-Laws provide for indemnification for Directors or officers of the Corporation and certain other parties, to the fullest extent
permitted by Maryland law and the 1940 Act, provided certain conditions are met. Additionally, in the normal course of business, the Fund enters into agreements with service providers that may contain indemnification clauses. The Fund’s
maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred.
H Federal Income
Taxes— No provision for federal income or excise tax is required since the Fund intends to continue to qualify as a regulated investment company under the Internal Revenue Code
and to distribute substantially all of its taxable earnings.
19
Calvert
Small-Cap Fund
September 30, 2021
Notes to Financial
Statements — continued
Management has analyzed the Fund's tax positions taken for all
open federal income tax years and has concluded that no provision for federal income tax is required in the Fund's financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service for a period of three
years from the date of filing.
2 Related
Party Transactions
The investment advisory fee is earned
by CRM as compensation for investment advisory services rendered to the Fund. On March 1, 2021, Morgan Stanley acquired Eaton Vance Corp. (the “Transaction”) and CRM became an indirect, wholly-owned subsidiary of Morgan Stanley. In
connection with the Transaction, the Fund entered into a new investment advisory agreement (the “New Agreement”) with CRM, which took effect on March 1, 2021. Pursuant to the New Agreement (and the Fund’s investment advisory
agreement with CRM in effect prior to March 1, 2021), the fee is computed at the annual rate of 0.68% of the Fund’s average daily net assets and is payable monthly. For the year ended September 30, 2021, the investment advisory fee amounted to
$16,194,496. The Fund may invest its cash in Cash Reserves Fund. CRM does not currently receive a fee for advisory services provided to Cash Reserves Fund.
CRM has agreed to reimburse the Fund’s operating expenses
to the extent that total annual operating expenses (relating to ordinary operating expenses only and excluding expenses such as brokerage commissions, acquired fund fees and expenses of unaffiliated funds, borrowing costs, taxes or litigation
expenses) exceed 1.21%, 1.96%, 0.96% and 0.90% for Class A, Class C, Class I and Class R6, respectively, of such class's average daily net assets. The expense reimbursement agreement with CRM may be changed or terminated after January 31, 2022. For
the year ended September 30, 2021, no expenses were waived or reimbursed by CRM.
The administrative fee is earned by CRM as compensation for
administrative services rendered to the Fund. The fee is computed at an annual rate of 0.12% of the Fund’s average daily net assets attributable to Class A, Class C, Class I and Class R6 and is payable monthly. For the year ended September 30,
2021, CRM was paid administrative fees of $2,857,853.
The
Fund has in effect a distribution plan for Class A shares (Class A Plan) pursuant to Rule 12b-1 under the 1940 Act. Pursuant to the Class A Plan, the Fund pays Eaton Vance Distributors, Inc. (EVD), an affiliate of CRM and the Fund’s principal
underwriter, a distribution and service fee of 0.25% per annum of its average daily net assets attributable to Class A shares for distribution services and facilities provided to the Fund by EVD, as well as for personal services and/or the
maintenance of shareholder accounts. The Fund also has in effect a distribution plan for Class C shares (Class C Plan) pursuant to Rule 12b-1 under the 1940 Act. Pursuant to the Class C Plan, the Fund pays EVD amounts equal to 0.75% per annum of its
average daily net assets attributable to Class C shares for providing ongoing distribution services and facilities to the Fund. In addition, pursuant to the Class C Plan, the Fund also makes payments of service fees to EVD, financial intermediaries
and other persons in amounts equal to 0.25% per annum of its average daily net assets attributable to that class. Service fees paid or accrued are for personal services and/or the maintenance of shareholder accounts. Distribution and service fees
paid or accrued for the year ended September 30, 2021 amounted to $658,820 and $275,522 for Class A shares and Class C shares, respectively.
The Fund was informed that EVD received $68,441 as its portion
of the sales charge on sales of Class A shares for the year ended September 30, 2021. The Fund was also informed that EVD received less than $100 and $4,788 of contingent deferred sales charges paid by Class A and Class C shareholders, respectively,
for the same period. The Fund was informed that Morgan Stanley affiliated broker-dealers, which may be deemed to be affiliates of CRM and EVD, also received a portion of the sales charge on sales of Class A shares from March 1, 2021 through
September 30, 2021 in the amount of $2,657.
Eaton Vance
Management (EVM), an affiliate of CRM, provides sub-transfer agency and related services to the Fund pursuant to a Sub-Transfer Agency Support Services Agreement. For the year ended September 30, 2021, sub-transfer agency fees and expenses incurred
to EVM amounted to $116,344 and are included in transfer agency fees and expenses on the Statement of Operations.
Each Director of the Fund who is not an employee of CRM or its
affiliates receives an annual fee of $154,000, plus an annual Committee fee ranging from $8,500 to $16,500 depending on the Committee. The Board chair receives an additional $30,000 ($20,000 prior to January 1, 2021) annual fee and Committee chairs
receive an additional $6,000 annual fee. Eligible Directors may participate in a Deferred Compensation Plan (the Plan). Amounts deferred under the Plan are treated as though equal dollar amounts had been invested in shares of the Fund or other
Calvert funds selected by the Directors. The Fund purchases shares of the funds selected equal to the dollar amounts deferred under the Plan, resulting in an asset equal to the deferred compensation liability. Obligations of the Plan are paid solely
from the Fund's assets. Directors’ fees are allocated to each of the Calvert funds served. Salaries and fees of officers and Directors of the Fund who are employees of CRM or its affiliates are paid by CRM.
Prior to December 31, 2020, an Advisory Council aided the Board and CRM in advancing the cause of responsible investing through original scholarship and thought leadership. The Advisory Council consisted of
CRM’s Chief Executive Officer and three additional members. For the year ended December 31, 2020, each member (other than CRM’s Chief Executive Officer) was compensated $20,000 for their service on the Advisory Council. Such
compensation, and any other compensation and/or expenses incurred by the Advisory Council as may be approved by the Board, was borne by the Calvert funds. For the year ended September 30, 2021, the
Fund’s allocated portion of the Advisory Council compensation and fees was $2,307, which is included in miscellaneous expense on the Statement of Operations.
20
Calvert
Small-Cap Fund
September 30, 2021
Notes to Financial
Statements — continued
3 Investment Activity
During the year ended September 30, 2021, the cost of purchases
and proceeds from sales of investments, other than short-term securities, were $1,917,480,380 and $1,223,163,282, respectively.
4 Distributions to Shareholders and Income Tax
Information
The tax character of distributions declared
for the years ended September 30, 2021 and September 30, 2020 was as follows:
| Year Ended September 30, | ||
| 2021 | 2020 | |
| Ordinary income | $2,290,276 | $2,610,080 |
| Long-term capital gains | $ — | $8,261,318 |
During the year ended September 30,
2021, distributable earnings was decreased by $16,152,054 and paid-in capital was increased by $16,152,054
due to the Fund's use of equalization accounting. Tax equalization accounting
allows the Fund to treat as a distribution that portion of redemption proceeds representing a redeeming shareholder’s portion of undistributed taxable income and net capital gains. These
reclassifications had no effect on the net assets or net asset value per share of the Fund.
As of September 30, 2021, the components of distributable
earnings (accumulated loss) on a tax basis were as follows:
| Undistributed ordinary income | $ 89,614,352 |
| Undistributed long-term capital gains | 100,863,247 |
| Net unrealized appreciation | 465,041,427 |
| Distributable earnings | $655,519,026 |
The cost and unrealized appreciation
(depreciation) of investments of the Fund at September 30, 2021, as determined on a federal income tax basis, were as follows:
| Aggregate cost | $2,335,701,183 |
| Gross unrealized appreciation | $ 504,712,879 |
| Gross unrealized depreciation | (39,671,452) |
| Net unrealized appreciation | $ 465,041,427 |
5 Securities Lending
To generate additional income, the Fund may lend its securities
pursuant to a securities lending agency agreement with State Street Bank and Trust Company (SSBT), the securities lending agent. Security loans are subject to termination by the Fund at any time and, therefore, are not considered illiquid
investments. The Fund requires that the loan be continuously collateralized by either cash or securities in an amount at least equal to the market value of the securities on loan. The market value of securities loaned is determined daily and any
additional required collateral is delivered to the Fund on the next business day. Cash collateral is generally invested in a money market fund registered under the 1940 Act that is managed by an affiliate of SSBT. Any gain or loss in the market
price of the loaned securities that might occur and any interest earned or dividends declared during the term of the loan would accrue to the account of the Fund. Income earned on the investment of collateral, net of broker rebates and other
expenses incurred by the securities lending agent, is split between the Fund and the securities lending agent based on agreed upon contractual terms. Non-cash collateral, if any, is held by the lending agent on behalf of the Fund and cannot be sold
or re-pledged by the Fund; accordingly, such collateral is not reflected in the Statement of Assets and Liabilities.
The risks associated with lending portfolio securities include,
but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights to the collateral should the borrower fail financially, as well as risk of loss in the value of the
collateral or the value of the investments made with the collateral. The securities lending agent shall indemnify the Fund in the case of default of any securities borrower.
21
Calvert
Small-Cap Fund
September 30, 2021
Notes to Financial
Statements — continued
At
September 30, 2021, the total value of securities on loan was $6,224,576 and the total value of collateral received was $6,447,765, comprised of cash of $1,804,401 and U.S. government and/or agencies securities of $4,643,364.
The following table provides a breakdown of securities lending
transactions accounted for as secured borrowings, the obligations by class of collateral pledged, and the remaining contractual maturity of those transactions as of September 30, 2021.
| Remaining Contractual Maturity of the Transactions | |||||
| Overnight
and Continuous |
<30 days | 30 to 90 days | >90 days | Total | |
| Common Stocks | $1,804,401 | $ — | $ — | $ — | $1,804,401 |
The carrying amount of the liability
for deposits for securities loaned at September 30, 2021 approximated its fair value. If measured at fair value, such liability would have been considered as Level 2 in the fair value hierarchy (see Note 1A) at September 30, 2021.
6 Line of Credit
The Fund participates with other portfolios and funds managed
by EVM and its affiliates, including CRM, in an $800 million unsecured line of credit with a group of banks, which is in effect through October 26, 2021. Borrowings are made by the Fund solely for temporary purposes related to redemptions and other
short-term cash needs. Interest is charged to the Fund based on its borrowings at an amount above either the Eurodollar rate or Federal Funds rate. In addition, a fee computed at an annual rate of 0.15% on the daily unused portion of the line of
credit is allocated among the participating portfolios and funds at the end of each quarter. In connection with the renewal of the agreement in October 2020, an upfront fee and arrangement fee totaling $950,000 was incurred that was allocated to the
participating portfolios and funds. Because the line of credit is not available exclusively to the Fund, it may be unable to borrow some or all of its requested amounts at any particular time.
The Fund had no borrowings pursuant to its line of credit
during the year ended September 30, 2021. Effective October 26, 2021, the Fund renewed its line of credit agreement, which expires October 25, 2022, at substantially the same terms.
7 Affiliated Companies and Funds
The Fund has invested a portion of its assets in notes (the
Notes) issued by Calvert Impact Capital, Inc. (CIC) pursuant to exemptive relief granted by the U.S. Securities and Exchange Commission (the SEC). There are certain potential points of affiliation between the Fund and CIC. CRM has licensed use of
the Calvert name to CIC and provides other types of support. CRM’s President and Chief Executive Officer (and the only director/trustee on the Fund Board that is an “interested person” of the Fund) serves on the CIC Board. In
addition, another director/trustee on the Fund Board serves as a director emeritus on the CIC Board.
At September 30, 2021, the value of the Fund’s investment
in the Notes and affiliated funds was $46,166,627, which represents 1.6% of the Fund’s net assets. Transactions in the Notes and affiliated funds by the Fund for the year ended September 30, 2021 were as follows:
| Name | Value,
beginning of period |
Purchases | Sales
proceeds |
Net
realized gain (loss) |
Change
in unrealized appreciation (depreciation) |
Value,
end of period |
Interest/
Dividend income |
Principal
amount/Units, end of period |
| High Social Impact Investments | ||||||||
| Calvert Impact Capital, Inc., Community Investment Notes: | ||||||||
| 1.50%, 12/15/20(1) | $ 2,502,849 | $ — | $ (2,515,603) | $ — | $ 12,754 | $ — | $ 7,861 | $ — |
| 1.50%, 12/15/23(1) | — | 2,520,000 | — | — | (43,268) | 2,476,732 | 30,030 | 2,520,000 |
| Short-Term Investments | ||||||||
| Calvert Cash Reserves Fund, LLC | 20,895,723 | 881,484,440 | (858,692,550) | (2,399) | 4,681 | 43,689,895 | 21,293 | 43,685,527 |
| Totals | $(2,399) | $ (25,833) | $46,166,627 | $59,184 | ||||
| (1) | Restricted security. |
22
Calvert
Small-Cap Fund
September 30, 2021
Notes to Financial
Statements — continued
8 Capital Shares
The Corporation may issue its shares in one or more series
(such as the Fund). The authorized shares of the Fund consist of 75,000,000 common shares, $0.01 par value, for each Class.
Transactions in capital shares for the years ended September
30, 2021 and September 30, 2020 were as follows:
| Year
Ended September 30, 2021 |
Year
Ended September 30, 2020 | ||||
| Shares | Amount | Shares | Amount | ||
| Class A | |||||
| Shares sold | 2,511,035 | $ 77,975,808 | 2,505,463 | $ 59,082,941 | |
| Reinvestment of distributions | — | — | 84,645 | 2,165,230 | |
| Shares redeemed | (1,588,951) | (49,469,166) | (1,652,197) | (38,244,903) | |
| Converted from Class C | 38,198 | 1,095,114 | 25,804 | 632,477 | |
| Net increase | 960,282 | $ 29,601,756 | 963,715 | $ 23,635,745 | |
| Class C | |||||
| Shares sold | 525,736 | $ 13,902,600 | 359,892 | $ 7,284,269 | |
| Reinvestment of distributions | — | — | 8,772 | 191,136 | |
| Shares redeemed | (148,104) | (3,948,587) | (183,232) | (3,611,154) | |
| Converted to Class A | (45,209) | (1,095,114) | (30,252) | (632,477) | |
| Net increase | 332,423 | $ 8,858,899 | 155,180 | $ 3,231,774 | |
| Class I | |||||
| Shares sold | 35,089,756 | $1,189,109,366 | 41,335,024 | $1,041,863,042 | |
| Reinvestment of distributions | 60,642 | 1,893,863 | 268,712 | 7,448,686 | |
| Shares redeemed | (15,153,155) | (520,975,811) | (11,802,177) | (287,768,244) | |
| Net increase | 19,997,243 | $ 670,027,418 | 29,801,559 | $ 761,543,484 | |
| Class R6 | |||||
| Shares sold | 1,071,248 | $ 36,569,790 | 686,828 | $ 16,652,531 | |
| Reinvestment of distributions | 2,905 | 90,728 | 18,383 | 509,400 | |
| Shares redeemed | (417,221) | (14,519,771) | (277,774) | (7,488,641) | |
| Net increase | 656,932 | $ 22,140,747 | 427,437 | $ 9,673,290 | |
9 Risks and Uncertainties
Pandemic Risk
An outbreak of respiratory disease caused by a novel
coronavirus was first detected in China in late 2019 and subsequently spread internationally. This coronavirus has resulted in closing borders, enhanced health screenings, changes to healthcare service preparation and delivery, quarantines,
cancellations, disruptions to supply chains and customer activity, as well as general concern and uncertainty. Health crises caused by outbreaks, such as the coronavirus outbreak, may exacerbate other pre-existing political, social and economic
risks and disrupt normal market conditions and operations. The impact of this outbreak has negatively affected the worldwide economy, the economies of individual countries, individual companies, and the market in general, and may continue to do so
in significant and unforeseen ways, as may other epidemics and pandemics that may arise in the future. Any such impact could adversely affect the Fund's performance, or the performance of the securities in which the Fund invests.
23
Calvert
Small-Cap Fund
September 30, 2021
Notes to Financial
Statements — continued
10 Change in Independent Registered Public
Accounting Firm
On July 30, 2021, KPMG LLP
(“KPMG”) informed the Audit Committee and Board of the Corporation that it was resigning as the independent registered public accounting firm to the Corporation, as upon Morgan Stanley’s acquisition of Eaton Vance Corp., the parent
company of CRM (the investment adviser to each series of the Corporation), KPMG would no longer be independent of the Corporation. The Audit Committee of the Board and the Board approved the selection of Deloitte & Touche LLP
(“Deloitte”) as the independent registered public accounting firm for the funds that are series of the Corporation (the “Funds”) for the fiscal year ending September 30, 2021 to be effective upon KPMG’s resignation and
Deloitte’s acceptance of the engagement which became effective July 30, 2021.
KPMG’s reports on the financial statements for the Funds
for the fiscal periods ended September 30, 2019 and September 30, 2020 contained no adverse opinion or disclaimer of opinion nor were they qualified or modified as to uncertainty, audit scope or accounting principles. During the fiscal periods ended
September 30, 2019 and September 30, 2020, and during the subsequent interim period through July 30, 2021: (i) there were no disagreements with KPMG on any matter of accounting principles or practices, financial statement disclosure or auditing
scope or procedure, which disagreements, if not resolved to the satisfaction of KPMG, would have caused KPMG to make reference to the subject matter of the disagreements in connection with its reports on the Funds’ financial statements for
such periods; and (ii) there were no “reportable events” of the kind described in Item 304(a)(1)(v) of Regulation S-K under the Securities Exchange Act of 1934, as amended.
During the fiscal periods ended September 30, 2019 and
September 30, 2020, and during the subsequent interim period through July 30, 2021: neither the Funds, nor anyone on their behalf, consulted with Deloitte on items which: (i) concerned the application of accounting principles to a specified
transaction, either completed or proposed, or the type of audit opinion that might be rendered on the Funds’ financial statements; or (ii) concerned the subject of a disagreement (as defined in paragraph (a)(1)(iv) of Item 304 of Regulation
S-K) or reportable events (as described in paragraph (a)(1)(v) of Item 304).
24
Calvert
Small-Cap Fund
September 30, 2021
Report of
Independent Registered Public Accounting Firm
To the
Board of Directors of Calvert Impact Fund, Inc. and Shareholders of Calvert Small-Cap Fund:
Opinion on the Financial Statements and Financial
Highlights
We have audited the accompanying statement of
assets and liabilities of Calvert Small-Cap Fund (the "Fund") (one of the funds constituting Calvert Impact Fund, Inc.), including the schedule of investments, as of September 30, 2021, the related statements of operations, changes in net assets and
the financial highlights for the year then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of September 30, 2021, and the
results of its operations and changes in its net assets for the year then ended, and the financial highlights for the year then ended in conformity with accounting principles generally accepted in the United States of America. The statement of
changes in net assets for the year ended September 30, 2020, and the financial highlights for the years or periods ended September 30, 2020, 2019, 2018, and 2017 were audited by other auditors whose report, dated November 20, 2020, expressed an
unqualified opinion on that financial statement and those financial highlights.
Basis for Opinion
These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audit. We are a public accounting firm registered with the Public Company Accounting
Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the
PCAOB.
We conducted our audit in accordance with the
standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The
Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting but not for the
purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audit included performing procedures to assess the risks of
material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and
disclosures in the financial statements and financial highlights. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial
statements and financial highlights. Our procedures included confirmation of securities owned as of September 30, 2021, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing
procedures. We believe that our audit provides a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
November 22, 2021
Boston, Massachusetts
November 22, 2021
We have served as the auditor of one or
more Calvert investment companies since 2021.
25
Calvert
Small-Cap Fund
September 30, 2021
Federal Tax
Information (Unaudited)
The
Form 1099-DIV you receive in February 2022 will show the tax status of all distributions paid to your account in calendar year 2021. Shareholders are advised to consult their own tax adviser with respect to the tax consequences of their investment
in the Fund. As required by the Internal Revenue Code and/or regulations, shareholders must be notified regarding the status of qualified dividend income for individuals, the dividends received deduction for corporations and capital gains
dividends.
Qualified Dividend Income. For the fiscal year ended September 30, 2021, the Fund designates approximately $16,752,844, or up to the maximum amount of such dividends allowable pursuant to the Internal Revenue Code, as qualified dividend income
eligible for the reduced tax rate of 15%.
Dividends
Received Deduction. Corporate shareholders are generally entitled to take the dividends received deduction on the portion of the Fund's dividend distribution that qualifies under tax law. For the Fund's fiscal 2021
ordinary income dividends, 31.66% qualifies for the corporate dividends received deduction.
Capital Gains Dividends. The
Fund hereby designates as a capital gain dividend with respect to the taxable year ended September 30, 2021, $109,476,176 or, if subsequently determined to be different, the net capital gain of such year.
26
Calvert
Small-Cap Fund
September 30, 2021
Liquidity Risk
Management Program
The
Fund has implemented a written liquidity risk management program (Program) and related procedures to manage its liquidity in accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (Liquidity Rule). The Liquidity Rule defines
“liquidity risk” as the risk that a fund could not meet requests to redeem shares issued by the fund without significant dilution of the remaining investors’ interests in the fund. The Fund’s Board of Trustees/Directors has
designated the investment adviser to serve as the administrator of the Program and the related procedures. The administrator has established a Liquidity Risk Management Oversight Committee (Committee) to perform the functions necessary to administer
the Program. As part of the Program, the administrator is responsible for identifying illiquid investments and categorizing the relative liquidity of the Fund’s investments in accordance with the Liquidity Rule. Under the Program, the
administrator assesses, manages, and periodically reviews the Fund’s liquidity risk, and is responsible for making certain reports to the Fund’s Board of Trustees/Directors and the Securities and Exchange Commission (SEC) regarding the
liquidity of the Fund’s investments, and to notify the Board of Trustees/Directors and the SEC of certain liquidity events specified in the Liquidity Rule. The liquidity of the Fund’s portfolio investments is determined based on a number
of factors including, but not limited to, relevant market, trading and investment-specific considerations under the Program.
At a meeting of the Fund’s Board of Trustees/Directors on
June 16, 2021, the Committee provided a written report to the Fund’s Board of Trustees/ Directors pertaining to the operation, adequacy, and effectiveness of implementation of the Program, as well as the operation of the highly liquid
investment minimum (if applicable) for the period January 1, 2020 through December 31, 2020 (Review Period). The Program operated effectively during the Review Period, supporting the administrator’s ability to assess, manage and monitor Fund
liquidity risk, including during periods of market volatility and net redemptions. During the Review Period, the Fund met redemption requests on a timely basis.
There can be no assurance that the Program will achieve its
objectives in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other principal risks to which an investment in the Fund may be subject.
27
Calvert
Small-Cap Fund
September 30, 2021
Management and
Organization
Fund
Management. The Directors of Calvert Impact Fund, Inc. (the Corporation) are responsible for the overall management and supervision of the Corporation’s affairs. The Directors and officers of the Corporation
are listed below. Except as indicated, each individual has held the office shown or other offices in the same company for the last five years. Each Board member holds office until his or her successor is elected and qualified, or until his or her
earlier death, resignation, retirement, removal or disqualification. Under the terms of the Fund's current Board member retirement policy, an Independent Board member must retire at the end of the calendar year in which he or she turns 75. However,
if such retirement would cause the Fund to be out of compliance with Section 16 of the 1940 Act or any other regulations or guidance of the SEC, then such retirement and resignation will not become effective until such time as action has been taken
for the Fund to be in compliance upon a Board member's retirement. The “Independent Directors” consist of those Directors who are not “interested persons” of the Corporation, as that term is defined under the 1940 Act. The
business address of each Director and officer, with the exception of Ms. Walsh and Mr. Kirchner, is 1825 Connecticut Avenue NW, Suite 400, Washington, DC 20009. As used below, “CRM” refers to Calvert Research and Management. Each
Director oversees 39 funds in the Calvert fund complex. Each officer serves as an officer of certain other Calvert funds.
| Name and Year of Birth | Corporation
Position(s) |
Position
Start Date |
Principal
Occupation(s) and Other Directorships During Past Five Years and Other Relevant Experience |
| Interested Director | |||
| John
H. Streur(1) 1960 |
Director
and President |
2015 | President
and Chief Executive Officer of Calvert Research and Management (since December 31, 2016). President and Chief Executive Officer of Calvert Investments, Inc. (January 2015 - December 2016); Chief Executive Officer of Calvert Investment Distributors, Inc. (August 2015 - December 2016); Chief Compliance Officer of Calvert Investment Management, Inc. (August 2015 - April 2016); President and Director, Portfolio 21 Investments, Inc. (through October 2014); President, Chief Executive Officer and Director, Managers Investment Group LLC (through January 2012); President and Director, The Managers Funds and Managers AMG Funds (through January 2012). Other Directorships in the Last Five Years. Portfolio 21 Investments, Inc. (asset management) (through October 2014); Managers Investment Group LLC (asset management) (through January 2012); The Managers Funds (asset management) (through January 2012); Managers AMG Funds (asset management) (through January 2012); Calvert Impact Capital, Inc. |
| Independent Directors | |||
| Richard
L. Baird, Jr. 1948 |
Director | 2005 | Regional Disaster
Recovery Lead, American Red Cross of Greater Pennsylvania (since 2017). Volunteer, American Red Cross (since 2015). Former President and CEO of Adagio Health Inc. (retired in 2014) in Pittsburgh, PA. Other Directorships in the Last Five Years. None. |
| Alice
Gresham Bullock 1950 |
Chair
and Director |
2016 | Professor Emerita
at Howard University School of Law. Dean Emerita of Howard University School of Law and Deputy Director of the Association of American Law Schools (1992-1994). Other Directorships in the Last Five Years. None. |
| Cari
M. Dominguez 1949 |
Director | 2016 | Former
Chair of the U.S. Equal Employment Opportunity Commission. Other Directorships in the Last Five Years. Manpower, Inc. (employment agency); Triple S Management Corporation (managed care); National Association of Corporate Directors. |
| John
G. Guffey, Jr. 1948 |
Director | 2005 | President of
Aurora Press Inc., a privately held publisher of trade paperbacks (since January 1997). Other Directorships in the Last Five Years. Calvert Impact Capital, Inc. (through December 31, 2018); Calvert Ventures, LLC. |
| Miles
D. Harper, III 1962 |
Director | 2000 | Partner,
Carr Riggs & Ingram (public accounting firm) since October 2014. Partner, Gainer Donnelly & Desroches (public accounting firm) (now Carr Riggs & Ingram) (November 1999 - September 2014). Other Directorships in the Last Five Years. Bridgeway Funds (9) (asset management). |
| Joy
V. Jones 1950 |
Director | 2000 | Attorney.
Other Directorships in the Last Five Years. Conduit Street Restaurants SUD 2 Limited; Palm Management Restaurant Corporation. |
28
Calvert
Small-Cap Fund
September 30, 2021
Management and
Organization — continued
| Name and Year of Birth | Corporation
Position(s) |
Position
Start Date |
Principal
Occupation(s) and Other Directorships During Past Five Years and Other Relevant Experience |
| Independent Directors (continued) | |||
| Anthony
A. Williams 1951 |
Director | 2016 | CEO
and Executive Director of the Federal City Council (July 2012 to present); Senior Adviser and Independent Consultant for King and Spalding LLP (September 2015 to present); Executive Director of Global Government Practice at the Corporate Executive Board (January 2010 to January 2012). Other Directorships in the Last Five Years. Freddie Mac; Evoq Properties/Meruelo Maddux Properties, Inc. (real estate management); Weston Solutions, Inc. (environmental services); Bipartisan Policy Center’s Debt Reduction Task Force; Chesapeake Bay Foundation; Catholic University of America; Urban Institute (research organization); The Howard Hughes Corporation (real estate development). |
| Name and Year of Birth | Corporation
Position(s) |
Position
Start Date |
Principal
Occupation(s) During Past Five Years |
| Principal Officers who are not Directors | |||
| Hope
L. Brown 1973 |
Chief
Compliance Officer |
2014 | Chief
Compliance Officer of 39 registered investment companies advised by CRM (since 2014). Vice President and Chief Compliance Officer, Wilmington Funds (2012-2014). |
| Deidre
E. Walsh(2) 1971 |
Secretary,
Vice President and Chief Legal Officer |
2021 | Vice
President of CRM and officer of 39 registered investment companies advised by CRM (since 2021). Also Vice President of Eaton Vance and certain of its affiliates and officer of 138 registered investment companies advised or administered by Eaton Vance. |
| James
F. Kirchner(2) 1967 |
Treasurer | 2016 | Vice
President of CRM and officer of 39 registered investment companies advised by CRM (since 2016). Also Vice President of Eaton Vance and certain of its affiliates and officer of 138 registered investment companies advised or administered by Eaton Vance. |
| (1) Mr. Streur is an interested person of the Fund because of his positions with the Fund’s adviser and certain affiliates. | |||
| (2) The business address for Ms. Walsh and Mr. Kirchner is Two International Place, Boston, MA 02110. | |||
The SAI for the Fund includes additional information about the
Directors and officers of the Fund and can be obtained without charge on Calvert’s website at www.calvert.com or by calling 1-800-368-2745.
29
Calvert Funds
| Privacy Notice | April 2021 |
| FACTS | WHAT
DOES EATON VANCE DO WITH YOUR PERSONAL INFORMATION? |
| Why? | Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do. |
| What? | The
types of personal information we collect and share depend on the product or service you have with us. This information can include:■ Social Security number and income ■ investment experience and risk tolerance ■ checking account number and wire transfer instructions |
| How? | All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons Eaton Vance chooses to share; and whether you can limit this sharing. |
| Reasons
we can share your personal information |
Does
Eaton Vance share? |
Can
you limit this sharing? |
| For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus | Yes | No |
| For our marketing purposes — to offer our products and services to you | Yes | No |
| For joint marketing with other financial companies | No | We don’t share |
| For our investment management affiliates’ everyday business purposes — information about your transactions, experiences, and creditworthiness | Yes | Yes |
| For our affiliates’ everyday business purposes — information about your transactions and experiences | Yes | No |
| For our affiliates’ everyday business purposes — information about your creditworthiness | No | We don’t share |
| For our investment management affiliates to market to you | Yes | Yes |
| For our affiliates to market to you | No | We don’t share |
| For nonaffiliates to market to you | No | We don’t share |
| To
limit our sharing |
Call toll-free 1-800-368-2745 or email: CRMPrivacy@calvert.comPlease note:If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing. |
| Questions? | Call toll-free 1-800-368-2745 or email: CRMPrivacy@calvert.com |
30
Calvert Funds
| Privacy Notice — continued | April 2021 |
Page 2
| Who we are | |
| Who is providing this notice? | Eaton Vance Management, Eaton Vance Distributors, Inc., Eaton Vance Trust Company, Eaton Vance Management (International) Limited, Eaton Vance Advisers International Ltd., Eaton Vance Global Advisors Limited, Eaton Vance Management’s Real Estate Investment Group, Boston Management and Research, Calvert Research and Management, Eaton Vance and Calvert Fund Families and our investment advisory affiliates (“Eaton Vance”) (see Investment Management Affiliates definition below) |
| What we do | |
| How
does Eaton Vance protect my personal information? |
To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information. |
| How
does Eaton Vance collect my personal information? |
We
collect your personal information, for example, when you■ open an account or make deposits or withdrawals from your
account ■ buy securities from us or make a wire transfer ■ give us your contact informationWe also collect your personal information from others, such as credit bureaus, affiliates, or other companies. |
| Why can’t I limit all sharing? | Federal
law gives you the right to limit only■ sharing for affiliates’ everyday business purposes — information
about your creditworthiness ■ affiliates from using your information to market to you ■ sharing for nonaffiliates to market to youState laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law. |
| Definitions | |
| Investment
Management Affiliates |
Eaton Vance Investment Management Affiliates include registered investment advisers, registered broker- dealers, and registered and unregistered funds. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co. |
| Affiliates | Companies related by common ownership or control. They can be financial and nonfinancial companies.■ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co. |
| Nonaffiliates | Companies not related by common ownership or control. They can be financial and nonfinancial companies.■ Eaton Vance does not share with nonaffiliates so they can market to you. |
| Joint marketing | A formal agreement between nonaffiliated financial companies that together market financial products or services to you.■ Eaton Vance doesn’t jointly market. |
| Other important information | |
| Vermont: Except as permitted by law, we will not share personal information we collect about Vermont residents with Nonaffiliates unless you provide us with your written consent to share such information.California: Except as permitted by law, we will not share personal information we collect about California residents with Nonaffiliates and we will limit sharing such personal information with our Affiliates to comply with California privacy laws that apply to us. | |
31
Calvert Funds
IMPORTANT NOTICES
Delivery of Shareholder Documents. The Securities and Exchange Commission (SEC) permits funds to deliver only one copy of shareholder documents, including prospectuses, proxy statements and shareholder reports, to fund investors with
multiple accounts at the same residential or post office box address. This practice is often called “householding” and it helps eliminate duplicate mailings to shareholders. Calvert funds, or your financial intermediary, may household the mailing of your documents indefinitely unless you instruct Calvert funds, or your financial intermediary, otherwise. If you would prefer that your Calvert fund documents not be householded, please contact Calvert funds at 1-800-368-2745, or contact your financial intermediary. Your instructions that householding not
apply to delivery of your Calvert fund documents will typically be effective within 30 days of receipt by Calvert funds or your financial intermediary. Separate statements will be generated for each separate account and will be householded as
described above.
Portfolio Holdings. Each Calvert fund files a schedule of portfolio holdings on Part F to Form N-PORT with the SEC. Certain information filed on Form N-PORT may be viewed on the Calvert website at www.calvert.com, by calling
Calvert at 1-800-368-2745 or in the EDGAR database on the SEC’s website at www.sec.gov.
Proxy Voting. The Proxy Voting Guidelines that each Calvert fund uses to determine how to vote proxies relating to portfolio securities is provided as an Appendix to the fund’s Statement of Additional Information.
The Statement of Additional Information can be obtained free of charge by calling the Calvert funds at 1-800-368-2745, by visiting the Calvert funds’ website at www.calvert.com or visiting the SEC’s website at www.sec.gov. Information
regarding how a Calvert fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available by calling Calvert funds, by visiting the Calvert funds’ website at www.calvert.com or by visiting
the SEC’s website at www.sec.gov.
32
* FINRA
BrokerCheck. Investors may check the background of their Investment Professional by contacting the Financial Industry Regulatory Authority (FINRA). FINRA BrokerCheck is a free tool to help investors check the professional background of
current and former FINRA-registered securities firms and brokers. FINRA BrokerCheck is available by calling 1-800-289-9999 and at www.FINRA.org. The FINRA BrokerCheck brochure describing this program is available to investors at www.FINRA.org.
Calvert
Global Energy Solutions Fund
Global Water Fund
Global Water Fund
Annual Report
September 30, 2021
Commodity Futures Trading Commission Registration. The Commodity Futures Trading Commission (“CFTC”) has adopted regulations that subject registered investment companies and advisers to regulation by the CFTC if a fund invests more than a
prescribed level of its assets in certain CFTC-regulated instruments (including futures, certain options and swap agreements) or markets itself as providing investment exposure to such instruments. The adviser has claimed an exclusion from the
definition of “commodity pool operator” under the Commodity Exchange Act with respect to its management of each Fund and the other funds it manages. Accordingly, neither the Funds nor the adviser is subject to CFTC
regulation.
Fund shares are not insured by the FDIC
and are not deposits or other obligations of, or guaranteed by, any depository institution. Shares are subject to investment risks, including possible loss of principal invested.
This report must be preceded or accompanied by a current
summary prospectus or prospectus. Before investing, investors should consider carefully the investment objective, risks, and charges and expenses of a mutual fund. This and other important information is contained in the summary prospectus and
prospectus, which can be obtained from a financial intermediary. Prospective investors should read the prospectus carefully before investing. For further information, please call 1-800-368-2745.
Choose Planet-friendly E-delivery!
Sign up now for on-line statements, prospectuses, and fund
reports. In less than five minutes you can help reduce paper mail and lower fund costs.
Just go to
www.calvert.com. If you already have an online account with the Calvert funds, click on Login to access your Account and select the documents you would like to receive via e-mail.
If you’re new to online account access, click on Login,
then Register to create your user name and password. Once you’re in, click on the E-delivery sign-up on the Account Portfolio page and follow the quick, easy steps.
Note: If your shares are not
held directly with the Calvert funds but through a brokerage firm, you must contact your broker for electronic delivery options available through their firm.
Annual Report September 30, 2021
Calvert
Global Energy Solutions Fund
Global Water Fund
Calvert
Global Energy Solutions Fund
Global Water Fund
September 30, 2021
Management's Discussion of Fund Performance†
Economic and Market Conditions
The 12-month period that began October 1, 2020 was notable for
a widespread equity rally that started in November 2020, paused in January 2021, and then continued through the following summer. But in the final month of the period, negative economic news overwhelmed the investor optimism that had driven markets
for much of the period. Stock prices in September 2021 declined in the U.S. and across the globe, with the S&P 500® Index enduring its worst month since March
2020.
For the period as a whole, however, broad-market
stock indexes generally posted strong double-digit returns, as investors cheered the reopening of businesses that had been closed or hobbled by COVID-19, along with the rollout of several highly effective vaccines.
The virus, however, continued to have a firm grip on the global
economy. Disease rates advanced and declined with third and fourth waves of COVID-19 infections. Worker shortages led to global supply chain issues. From computer chips to shipping containers, scarcities of key items led to temporary factory
shutdowns and empty store shelves. In the U.S., those shortages — combined with high demand from consumers itching to spend money they had saved earlier in the pandemic — led to higher year-over-year inflation than the economy had seen
in years. Although U.S. Federal Reserve (the Fed) Chairman Jerome Powell and Treasury Secretary Janet Yellen expressed the view that inflation would likely be transitory, inflation nonetheless became a key concern for investors during the
period.
While the last month of the period began
auspiciously — with both the S&P 500® Index and the Nasdaq Composite Index closing at all-time highs in the first days of September — the news for investors
quickly turned negative. The Labor Department’s release of August job numbers showed only 235,000 jobs had been created — a significant slowdown from earlier in the summer. COVID-19 infections rose across the globe. After its September
meeting, the Fed indicated it might start to taper its bond purchases — which had stimulated the economy earlier — and possibly raise interest rates in 2022, a year earlier than it had previously projected.
In China, the world’s second-largest economy, the
Communist Party’s efforts to dial back capitalism and take more control of China’s surging technology sector were not applauded by global investors. The MSCI Golden Dragon Index, a measure of Chinese large-cap and mid-cap stocks, was one
of the worst-performing major stock indexes for the one-year period, returning 5.32%.
Despite a rough September, most other indexes fared
significantly better. The MSCI World Index, a broad measure of global equities, returned 28.82% for the 12 months ended September 30, 2021; while the S&P 500® Index, a
broad measure of U.S. stocks, returned 30.00%; and the technology-laden Nasdaq Composite Index rose 30.26%. The MSCI EAFE Index of developed-market international equities returned 25.73%, while the MSCI Emerging Markets Index returned 18.20% during
the period.
Fund Performance - Calvert Global Energy
Solutions Fund
For the 12-month period ended September
30, 2021, Calvert Global Energy Solutions Fund (the Fund) returned 35.00% for Class A shares at net asset value (NAV). The Fund outperformed its primary benchmark, the MSCI ACWI Index (the Index), which returned 27.44%; and underperformed its
secondary benchmark, the Calvert Global Energy Research Index (the Calvert Energy Index), which returned 37.92%.
The Fund’s underperformance relative to the Calvert
Energy Index was the result of Fund expenses and fees, which the Calvert Energy Index does not incur.
The Fund invests in five categories of companies that are
significantly involved in energy-related business activities (each as defined in the Fund’s prospectus): renewable energy producers/distributors, energy technology providers, energy efficiency providers, energy use leaders, and energy
innovators.
The Fund outperformed the Index during the
period as four of the five energy-related business categories outperformed the global equity market. Renewable energy producers/distributors and energy efficiency providers were particularly strong during the period while other categories lagged
slightly.
The Fund’s overweight exposure to
international stocks detracted from returns relative to the Index as the U.S. market outperformed overseas markets during the period. The Fund’s overweight exposure to Europe and Latin America particularly weighed on Fund performance versus
the Index.
Energy storage and wind energy companies were
the largest contributors to performance relative to the Index during the period. Energy storage companies within the Fund’s portfolio included Ecopro BM Co., Ltd., a manufacturer of batteries and material, and Livent Corp., which makes lithium
compounds, including those for batteries.
Xinjiang
Goldwind Science & Technology Co., Ltd., a leading global wind turbine manufacturer based in China, also contributed to performance relative to the Index as global efforts to shift to renewable energy intensified, including in China.
Sunrun, Inc. (Sunrun), a U.S. maker of residential solar panels
and batteries, detracted from returns relative to the Index during the period. While Sunrun’s revenues continued to grow, increased costs weighed on its profitability.
See Endnotes and Additional Disclosures in this report.
Past performance is no guarantee of future results. Returns are historical and
are calculated by determining the percentage change in net asset value (NAV) or offering price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. Performance for periods less than or equal to one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return.
For performance as of the most recent month-end, please refer to www.calvert.com.
2
Calvert
Global Energy Solutions Fund
Global Water Fund
September 30, 2021
Management's
Discussion of Fund Performance† — continued
CK Power Public Co., Ltd. (CK Power), a Thailand-based company
that invests in electric power generators, detracted from Fund performance relative to the Index. CK Power’s share price pulled back in late 2020 as it reported lower revenue and earnings versus 2019. By period-end, the stock was sold from the
Fund.
After a reported decline in revenue in the first
quarter of 2021, share prices of Albioma SA, a French electric utility, fell detracting from Fund performance versus the Index. Albioma’s revenue decline was largely the result of an increase in generator shutdowns for routine upkeep as a
result of deferred maintenance arising out of the pandemic.
Fund Performance - Calvert Global Water Fund
For the 12-month period ended September 30, 2021, Calvert
Global Water Fund (the Fund) returned 33.05% for Class A shares at net asset value (NAV). The Fund outperformed its primary benchmark, the MSCI ACWI Index (the Index), which returned 27.44%; and underperformed its secondary benchmark, the Calvert
Global Water Research Index (the Calvert Water Index), which returned 35.18%.
The Fund’s underperformance relative to the Calvert Water
Index was the result of Fund expenses and fees, which the Calvert Water Index does not incur.
The Fund invests in five categories of companies that are
significantly involved in water-related business activities (each as defined in the Fund’s prospectus): water utilities, water infrastructure providers, water technology providers, water use leaders, and water innovators.
The Fund outperformed the Index during the period primarily as
a result of its holdings in the water technology providers and water infrastructure providers categories. Overall, stock selection was a strong contributor to Fund performance relative to the Index during the period.
In contrast, sector allocation detracted from Fund performance
versus the Index. The Fund’s focus on companies that are significantly involved in water-related business activities may result in sector weightings that are significantly different from those of the Index. This is a primary driver of Fund
performance relative to the Index, especially in certain market conditions.
Among the strong water technology contributors during the
period were Rexnord Corp.; Energy Recovery, Inc.; Watts Water Technologies, Inc.; and Evoqua Water Technologies Corp.; all of which were not held by the Index. Water infrastructure providers — such as Valmont Industries, Inc. and Forterra,
Inc. — also contributed to Fund performance versus the Index, buoyed by growing demand globally arising from increased infrastructure spending.
Selections in the water utilities category detracted from
returns relative to the Index during the period. An overweight exposure to the category — particularly holdings in Companhia de Saneamento Basico do Estado de Sao Paolo and Cia de Saneamento do Parana in Brazil; and Guangdong Investment
Limited in Hong Kong — weighed on Fund performance relative to the Index during the period.
See Endnotes and Additional Disclosures in this report.
Past performance is no guarantee of future results. Returns are historical and
are calculated by determining the percentage change in net asset value (NAV) or offering price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. Performance for periods less than or equal to one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return.
For performance as of the most recent month-end, please refer to www.calvert.com.
3
Calvert
Global Energy Solutions Fund
September 30, 2021
Performance
Portfolio Manager Thomas C.
Seto of Calvert Research and Management
| % Average Annual Total Returns1,2 | Class
Inception Date |
Performance
Inception Date |
One Year | Five Years | Ten Years |
| Class A at NAV | 05/31/2007 | 05/31/2007 | 35.00% | 16.77% | 9.77% |
| Class A with 4.75% Maximum Sales Charge | — | — | 28.53 | 15.64 | 9.24 |
| Class C at NAV | 07/31/2007 | 05/31/2007 | 33.93 | 15.91 | 8.82 |
| Class C with 1% Maximum Sales Charge | — | — | 32.93 | 15.91 | 8.82 |
| Class I at NAV | 05/31/2007 | 05/31/2007 | 35.28 | 17.10 | 10.18 |
|
| |||||
| MSCI ACWI Index | — | — | 27.44% | 13.19% | 11.89% |
| Calvert Global Energy Research Spliced Benchmark | — | — | 37.92 | 18.81 | 13.18 |
| Calvert Global Energy Research Index | — | — | 37.92 | 18.78 | — |
| Ardour Global Alternative Energy Index | — | — | 49.21 | 28.38 | 17.65 |
| % Total Annual Operating Expense Ratios3 | Class A | Class C | Class I |
| Gross | 1.54% | 2.29% | 1.29% |
| Net | 1.24 | 1.99 | 0.99 |
Growth of $10,000
This graph shows the change in value of a hypothetical
investment of $10,000 in Class A of the Fund for the period indicated. For comparison, the same investment is shown in the indicated index.
| Growth of Investment | Amount Invested | Period Beginning | At NAV | With Maximum Sales Charge |
| Class C | $10,000 | 09/30/2011 | $23,293 | N.A. |
| Class I | $250,000 | 09/30/2011 | $659,747 | N.A. |
See Endnotes and Additional Disclosures in this report.
Past performance is no guarantee of future results. Returns are historical and
are calculated by determining the percentage change in net asset value (NAV) or offering price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. Performance for periods less than or equal to one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return.
For performance as of the most recent month-end, please refer to www.calvert.com.
4
Calvert
Global Energy Solutions Fund
September 30, 2021
Fund Profile
See Endnotes and Additional Disclosures in this
report.
5
Calvert
Global Water Fund
September 30, 2021
Performance
Portfolio Manager Thomas C.
Seto of Calvert Research and Management
| % Average Annual Total Returns1,2 | Class
Inception Date |
Performance
Inception Date |
One Year | Five Years | Ten Years |
| Class A at NAV | 09/30/2008 | 09/30/2008 | 33.05% | 10.91% | 10.92% |
| Class A with 4.75% Maximum Sales Charge | — | — | 26.73 | 9.84 | 10.38 |
| Class C at NAV | 09/30/2008 | 09/30/2008 | 32.05 | 10.09 | 10.06 |
| Class C with 1% Maximum Sales Charge | — | — | 31.05 | 10.09 | 10.06 |
| Class I at NAV | 01/31/2014 | 09/30/2008 | 33.41 | 11.25 | 11.24 |
|
| |||||
| MSCI ACWI Index | — | — | 27.44% | 13.19% | 11.89% |
| Calvert Global Water Research Spliced Benchmark | — | — | 35.18 | 12.54 | 13.46 |
| Calvert Global Water Research Index | — | — | 35.18 | 12.54 | — |
| S-Network Global Water Index | — | — | 27.27 | 11.08 | 12.78 |
| % Total Annual Operating Expense Ratios3 | Class A | Class C | Class I |
| Gross | 1.34% | 2.09% | 1.09% |
| Net | 1.24 | 1.99 | 0.99 |
Growth of $10,000
This graph shows the change in value of a hypothetical
investment of $10,000 in Class A of the Fund for the period indicated. For comparison, the same investment is shown in the indicated index.
| Growth of Investment2 | Amount Invested | Period Beginning | At NAV | With Maximum Sales Charge |
| Class C | $10,000 | 09/30/2011 | $26,089 | N.A. |
| Class I | $250,000 | 09/30/2011 | $726,147 | N.A. |
See Endnotes and Additional Disclosures in this report.
Past performance is no guarantee of future results. Returns are historical and
are calculated by determining the percentage change in net asset value (NAV) or offering price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. Performance for periods less than or equal to one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return.
For performance as of the most recent month-end, please refer to www.calvert.com.
6
Calvert
Global Water Fund
September 30, 2021
Fund Profile
See Endnotes and Additional Disclosures in this report.
7
Calvert
Global Energy Solutions Fund
Global Water Fund
September 30, 2021
Endnotes and
Additional Disclosures
8
Calvert
Global Energy Solutions Fund
Global Water Fund
September 30, 2021
Endnotes and
Additional Disclosures — continued
| Effective April 11, 2016, the Calvert Global Water Fund changed its investment objective and principal investment strategies to track the Calvert Global Water Research Index and implement the Calvert Principles for Responsible Investment. Prior to April 11, 2016, the Fund employed an active management strategy. Performance prior to April 11, 2016 reflects the Fund’s performance under its former investment objective and policies. In connection with such changes, the Fund changed its secondary benchmark from S-Network Global Water Index to Calvert Global Water Research Index.Calvert Research and Management became the investment adviser to each Fund on December 31, 2016. Performance reflected prior to such date is that of each Fund’s former investment adviser. | |
| 3 | Source: Fund prospectus. Net expense ratios reflect a contractual expense reimbursement that continues through 1/31/22. Without the reimbursement, if applicable, performance would have been lower. The expense ratios for the current reporting period can be found in the Financial Highlights section of this report. |
| Additional Information | |
| S&P 500® Index is an unmanaged index of large-cap stocks commonly used as a measure of U.S. stock market performance. S&P Dow Jones Indices are a product of S&P Dow Jones Indices LLC (“S&P DJI”) and have been licensed for use. S&P® and S&P 500® are registered trademarks of S&P DJI; Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); S&P DJI, Dow Jones and their respective affiliates do not sponsor, endorse, sell or promote the Fund, will not have any liability with respect thereto and do not have any liability for any errors, omissions, or interruptions of the S&P Dow Jones Indices. Nasdaq Composite Index is a market capitalization-weighted index of all domestic and international securities listed on Nasdaq. Source: Nasdaq, Inc. The information is provided by Nasdaq (with its affiliates, are referred to as the “Corporations”) and Nasdaq’s third party licensors on an “as is” basis and the Corporations make no guarantees and bear no liability of any kind with respect to the information or the Fund. MSCI Golden Dragon Index is an unmanaged index of common stocks traded in China, Hong Kong and Taiwan. MSCI World Index is an unmanaged index of equity securities in the developed markets. MSCI EAFE Index is an unmanaged index of equities in the developed markets, excluding the U.S. and Canada. MSCI Emerging Markets Index is an unmanaged index of emerging markets common stocks. |
9
Calvert
Global Energy Solutions Fund
Global Water Fund
September 30, 2021
Fund Expenses
Example
As a Fund shareholder, you incur two types of costs: (1)
transaction costs, including sales charges (loads) on purchases and redemption fees (if applicable); and (2) ongoing costs, including management fees; distribution and/or service fees; and other Fund expenses. This Example is intended to help you
understand your ongoing costs (in dollars) of Fund investing and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for
the entire period (April 1, 2021 to September 30, 2021).
Actual Expenses
The first section of the tables below provides information
about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an
$8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this
period.
Hypothetical Example for Comparison Purposes
The second section of the tables below provides information
about hypothetical account values and hypothetical expenses based on the actual Fund expense ratio and an assumed rate of return of 5% per year (before expenses), which is not the actual Fund return. The hypothetical account values and expenses may
not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with
the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to
highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption fees (if applicable). Therefore, the second section of the tables is useful in comparing ongoing costs only, and will not help
you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would be higher.
Calvert Global Energy Solutions Fund
| Beginning
Account Value (4/1/21) |
Ending
Account Value (9/30/21) |
Expenses
Paid During Period* (4/1/21 – 9/30/21) |
Annualized
Expense Ratio | |
| Actual | ||||
| Class A | $1,000.00 | $1,010.30 | $ 6.25** | 1.24% |
| Class C | $1,000.00 | $1,005.90 | $10.01 ** | 1.99% |
| Class I | $1,000.00 | $1,010.90 | $ 4.99** | 0.99% |
| Hypothetical | ||||
| (5% return per year before expenses) | ||||
| Class A | $1,000.00 | $1,018.85 | $ 6.28** | 1.24% |
| Class C | $1,000.00 | $1,015.09 | $10.05 ** | 1.99% |
| Class I | $1,000.00 | $1,020.10 | $ 5.01** | 0.99% |
| * | Expenses are equal to the Fund's annualized expense ratio for the indicated Class, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period). The Example assumes that the $1,000 was invested at the net asset value per share determined at the close of business on March 31, 2021. |
| ** | Absent a waiver and/or reimbursement of expenses by an affiliate, expenses would be higher. |
10
Calvert
Global Energy Solutions Fund
Global Water Fund
September 30, 2021
Fund
Expenses — continued
Calvert Global Water Fund
| Beginning
Account Value (4/1/21) |
Ending
Account Value (9/30/21) |
Expenses
Paid During Period* (4/1/21 – 9/30/21) |
Annualized
Expense Ratio | |
| Actual | ||||
| Class A | $1,000.00 | $1,060.40 | $ 6.40** | 1.24% |
| Class C | $1,000.00 | $1,056.50 | $10.26 ** | 1.99% |
| Class I | $1,000.00 | $1,061.90 | $ 5.12** | 0.99% |
| Hypothetical | ||||
| (5% return per year before expenses) | ||||
| Class A | $1,000.00 | $1,018.85 | $ 6.28** | 1.24% |
| Class C | $1,000.00 | $1,015.09 | $10.05 ** | 1.99% |
| Class I | $1,000.00 | $1,020.10 | $ 5.01** | 0.99% |
| * | Expenses are equal to the Fund's annualized expense ratio for the indicated Class, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period). The Example assumes that the $1,000 was invested at the net asset value per share determined at the close of business on March 31, 2021. |
| ** | Absent a waiver and/or reimbursement of expenses by an affiliate, expenses would be higher. |
11
Calvert
Global Energy Solutions Fund
September 30, 2021
Schedule of
Investments
12
See Notes to Financial Statements.
Calvert
Global Energy Solutions Fund
September 30, 2021
Schedule of
Investments — continued
13
See Notes to Financial Statements.
Calvert
Global Energy Solutions Fund
September 30, 2021
Schedule of
Investments — continued
14
See Notes to Financial Statements.
Calvert
Global Energy Solutions Fund
September 30, 2021
Schedule of
Investments — continued
Restricted Securities
| Description | Acquisition Dates | Cost |
| Calvert Impact Capital, Inc., Community Investment Notes, 1.50%, 12/15/23 | 12/14/20 | $200,000 |
| ImpactAssets, Inc., Global Sustainable Agriculture Notes, 0.00%, 11/3/22 | 11/13/15 | 53,000 |
| ImpactAssets, Inc., Microfinance Plus Notes, 0.00%, 11/3/22 | 11/13/15 | 68,000 |
| Abbreviations: | |
| ADR | – American Depositary Receipt |
| NVDR | – Non-Voting Depository Receipt |
| PCL | – Public Company Limited |
15
See Notes to Financial Statements.
Calvert
Global Water Fund
September 30, 2021
Schedule of
Investments
16
See Notes to Financial Statements.
Calvert
Global Water Fund
September 30, 2021
Schedule of
Investments — continued
17
See Notes to Financial Statements.
Calvert
Global Water Fund
September 30, 2021
Schedule of
Investments — continued
18
See Notes to Financial Statements.
Calvert
Global Water Fund
September 30, 2021
Schedule of
Investments — continued
Restricted
Securities
| Description | Acquisition Dates | Cost |
| Calvert Impact Capital, Inc., Community Investment Notes, 1.50%, 12/15/23 | 12/14/20 | $630,000 |
| ImpactAssets, Inc., Global Sustainable Agriculture Notes, 0.00%, 11/3/22 | 11/13/15 | 284,000 |
| ImpactAssets, Inc., Microfinance Plus Notes, 0.00%, 11/3/22 | 11/13/15 | 366,000 |
| Abbreviations: | |
| ADR | – American Depositary Receipt |
| PC | – Participation Certificate |
| PCL | – Public Company Limited |
| PFC Shares | – Preference Shares |
19
See Notes to Financial Statements.
Calvert
Global Energy Solutions Fund
Global Water Fund
September 30, 2021
Statements of Assets
and Liabilities
| September 30, 2021 | ||
| Global Energy Solutions Fund | Global Water Fund | |
| Assets | ||
| Investments in securities of unaffiliated issuers, at value (identified cost $191,328,244 and $406,853,887, respectively) - including $9,194,758 and $21,413,354, respectively, of securities on loan | $ 225,612,211 | $ 571,977,098 |
| Investments in securities of affiliated issuers, at value (identified cost $1,170,124 and $3,560,671, respectively) | 1,166,769 | 3,550,040 |
| Cash denominated in foreign currency, at value (cost $305,611 and $445,288, respectively) | 304,323 | 440,372 |
| Receivable for investments sold | 1,291,194 | — |
| Receivable for capital shares sold | 534,584 | 1,053,152 |
| Dividends and interest receivable | 234,615 | 1,324,343 |
| Dividends and interest receivable - affiliated | 2,409 | 7,580 |
| Securities lending income receivable | 1,494 | 1,964 |
| Tax reclaims receivable | 149,549 | 410,665 |
| Receivable from affiliate | 33,826 | 11,964 |
| Directors' deferred compensation plan | 55,220 | 293,564 |
| Total assets | $229,386,194 | $579,070,742 |
| Liabilities | ||
| Due to custodian | $ 1,688 | $ — |
| Payable for investments purchased | 810,917 | 2,316,197 |
| Payable for capital shares redeemed | 93,499 | 364,578 |
| Deposits for securities loaned | 2,653,387 | 12,161,176 |
| Payable to affiliates: | ||
| Investment advisory fee | 144,242 | 348,572 |
| Administrative fee | 23,079 | 57,994 |
| Distribution and service fees | 30,692 | 89,281 |
| Sub-transfer agency fee | 9,516 | 16,096 |
| Directors' deferred compensation plan | 55,220 | 293,564 |
| Accrued expenses | 145,629 | 228,061 |
| Total liabilities | $ 3,967,869 | $ 15,875,519 |
| Net Assets | $225,418,325 | $563,195,223 |
| Sources of Net Assets | ||
| Paid-in capital | $ 228,300,398 | $ 404,751,540 |
| Distributable earnings (Accumulated loss) | (2,882,073) | 158,443,683 |
| Total | $225,418,325 | $563,195,223 |
| Class A Shares | ||
| Net Assets | $ 100,038,066 | $ 246,978,421 |
| Shares Outstanding | 7,824,475 | 8,632,790 |
| Net
Asset Value and Redemption Price Per Share (net assets ÷ shares of beneficial interest outstanding) |
$ 12.79 | $ 28.61 |
| Maximum
Offering Price Per Share (100 ÷ 95.25 of net asset value per share) |
$ 13.43 | $ 30.04 |
| Class C Shares | ||
| Net Assets | $ 11,009,499 | $ 41,631,269 |
| Shares Outstanding | 922,795 | 1,589,630 |
| Net
Asset Value and Offering Price Per Share* (net assets ÷ shares of beneficial interest outstanding) |
$ 11.93 | $ 26.19 |
20
See Notes to Financial Statements.
Calvert
Global Energy Solutions Fund
Global Water Fund
September 30, 2021
Statements of Assets
and Liabilities — continued
| September 30, 2021 | ||
| Global Energy Solutions Fund | Global Water Fund | |
| Class I Shares | ||
| Net Assets | $114,370,760 | $274,585,533 |
| Shares Outstanding | 8,789,172 | 9,522,317 |
| Net
Asset Value, Offering Price and Redemption Price Per Share (net assets ÷ shares of beneficial interest outstanding) |
$ 13.01 | $ 28.84 |
| On sales of $50,000 or more, the offering price of Class A shares is reduced. | |
| * | Redemption price per share is equal to the net asset value less any applicable contingent deferred sales charge. |
21
See Notes to Financial Statements.
Calvert
Global Energy Solutions Fund
Global Water Fund
September 30, 2021
Statements of
Operations
| Year Ended September 30, 2021 | ||
| Global Energy Solutions Fund | Global Water Fund | |
| Investment Income | ||
| Dividend income (net of foreign taxes withheld of $379,831 and $841,596, respectively) | $ 3,299,069 | $ 12,583,435 |
| Dividend income - affiliated issuers | 802 | 1,105 |
| Interest income | 381 | 1,838 |
| Interest income - affiliated issuers | 3,207 | 11,645 |
| Securities lending income, net | 119,400 | 31,811 |
| Total investment income | $ 3,422,859 | $ 12,629,834 |
| Expenses | ||
| Investment advisory fee | $ 1,459,231 | $ 3,723,407 |
| Administrative fee | 233,477 | 616,870 |
| Distribution and service fees: | ||
| Class A | 228,559 | 566,637 |
| Class C | 102,991 | 422,227 |
| Directors' fees and expenses | 8,275 | 26,136 |
| Custodian fees | 66,661 | 53,600 |
| Transfer agency fees and expenses | 296,532 | 633,103 |
| Accounting fees | 58,020 | 124,258 |
| Professional fees | 31,262 | 44,598 |
| Registration fees | 79,641 | 72,776 |
| Reports to shareholders | 20,158 | 43,846 |
| Miscellaneous | 28,198 | 38,342 |
| Total expenses | $ 2,613,005 | $ 6,365,800 |
| Waiver and/or reimbursement of expenses by affiliate | $ (349,085) | $ (284,409) |
| Net expenses | $ 2,263,920 | $ 6,081,391 |
| Net investment income | $ 1,158,939 | $ 6,548,443 |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss): | ||
| Investment securities | $ 29,995,393 | $ 31,523,950 |
| Investment securities - affiliated issuers | (66) | (309) |
| Foreign currency transactions | (39,980) | 24,068 |
| Net realized gain | $29,955,347 | $ 31,547,709 |
| Change in unrealized appreciation (depreciation): | ||
| Investment securities | $ 9,639,146 | $ 96,677,316 |
| Investment securities - affiliated issuers | (2,006) | (3,817) |
| Foreign currency | (32,367) | (32,078) |
| Net change in unrealized appreciation (depreciation) | $ 9,604,773 | $ 96,641,421 |
| Net realized and unrealized gain | $39,560,120 | $128,189,130 |
| Net increase in net assets from operations | $40,719,059 | $134,737,573 |
22
See Notes to Financial Statements.
Calvert
Global Energy Solutions Fund
Global Water Fund
September 30, 2021
Statements of
Changes in Net Assets
| Global Energy Solutions Fund | Global Water Fund | |||
| Year Ended September 30, | ||||
| 2021 | 2020 | 2021 | 2020 | |
| Increase (Decrease) in Net Assets | ||||
| From operations: | ||||
| Net investment income | $ 1,158,939 | $ 727,040 | $ 6,548,443 | $ 2,974,014 |
| Net realized gain | 29,955,347 | 8,877,835 | 31,547,709 | 5,551,449 |
| Net change in unrealized appreciation (depreciation) | 9,604,773 | 19,963,491 | 96,641,421 | 11,179,783 |
| Net increase in net assets from operations | $ 40,719,059 | $ 29,568,366 | $134,737,573 | $ 19,705,246 |
| Distributions to shareholders: | ||||
| Class A | $ (576,225) | $ (529,616) | $ (1,611,609) | $ (1,611,283) |
| Class C | (12,463) | (26,519) | (12,508) | (108,693) |
| Class I | (567,285) | (359,921) | (2,142,987) | (2,089,882) |
| Total distributions to shareholders | $ (1,155,973) | $ (916,056) | $ (3,767,104) | $ (3,809,858) |
| Capital share transactions: | ||||
| Class A | $ 15,894,369 | $ (1,151,504) | $ 8,216,239 | $ (7,542,026) |
| Class C | 671,750 | (956,642) | (9,252,815) | (12,448,296) |
| Class I | 53,344,764 | 11,184,843 | 23,806,274 | 2,202,758 |
| Net increase (decrease) in net assets from capital share transactions | $ 69,910,883 | $ 9,076,697 | $ 22,769,698 | $ (17,787,564) |
| Net increase (decrease) in net assets | $109,473,969 | $ 37,729,007 | $153,740,167 | $ (1,892,176) |
| Net Assets | ||||
| At beginning of year | $ 115,944,356 | $ 78,215,349 | $ 409,455,056 | $ 411,347,232 |
| At end of year | $225,418,325 | $115,944,356 | $563,195,223 | $409,455,056 |
23
See Notes to Financial Statements.
Calvert
Global Energy Solutions Fund
September 30, 2021
Financial
Highlights
| Global Energy Solutions Fund — Class A | |||||
| Year Ended September 30, | |||||
| 2021 | 2020 | 2019 | 2018 | 2017 | |
| Net asset value — Beginning of year | $ 9.54 | $ 7.08 | $ 6.95 | $ 7.23 | $ 6.23 |
| Income (Loss) From Operations | |||||
| Net investment income(1) | $ 0.06 | $ 0.06 | $ 0.08 | $ 0.10 | $ 0.08 |
| Net realized and unrealized gain (loss) | 3.27 | 2.48 | 0.15 | (0.29) | 0.98 |
| Total income (loss) from operations | $ 3.33 | $ 2.54 | $ 0.23 | $ (0.19) | $ 1.06 |
| Less Distributions | |||||
| From net investment income | $ (0.08) | $ (0.08) | $ (0.10) | $ (0.09) | $ (0.06) |
| Total distributions | $ (0.08) | $ (0.08) | $ (0.10) | $ (0.09) | $ (0.06) |
| Net asset value — End of year | $ 12.79 | $ 9.54 | $ 7.08 | $ 6.95 | $ 7.23 |
| Total Return(2) | 35.00% | 36.12% | 3.60% | (2.73)% | 17.28% |
| Ratios/Supplemental Data | |||||
| Net assets, end of year (000’s omitted) | $100,038 | $62,428 | $47,596 | $51,502 | $58,695 |
| Ratios (as a percentage of average daily net assets):(3) | |||||
| Total expenses | 1.42% | 1.54% | 1.72% | 1.69% | 1.94% |
| Net expenses | 1.24% | 1.24% | 1.26% | 1.28% | 1.38% |
| Net investment income | 0.48% | 0.76% | 1.27% | 1.34% | 1.26% |
| Portfolio Turnover | 50% | 45% | 40% | 38% | 133% |
| (1) | Computed using average shares outstanding. |
| (2) | Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested and do not reflect the effect of sales charges, if any. |
| (3) | Total expenses do not reflect amounts reimbursed and/or waived by the adviser and certain of its affiliates, if applicable. Net expenses are net of all reductions and represent the net expenses paid by the Fund. |
24
See Notes to Financial Statements.
Calvert
Global Energy Solutions Fund
September 30, 2021
Financial
Highlights — continued
| Global Energy Solutions Fund — Class C | |||||
| Year Ended September 30, | |||||
| 2021 | 2020 | 2019 | 2018 | 2017 | |
| Net asset value — Beginning of year | $ 8.92 | $ 6.63 | $ 6.50 | $ 6.76 | $ 5.82 |
| Income (Loss) From Operations | |||||
| Net investment income (loss)(1) | $ (0.03) | $ (—)(2) | $ 0.02 | $ 0.04 | $ 0.03 |
| Net realized and unrealized gain (loss) | 3.06 | 2.32 | 0.16 | (0.26) | 0.92 |
| Total income (loss) from operations | $ 3.03 | $ 2.32 | $ 0.18 | $ (0.22) | $ 0.95 |
| Less Distributions | |||||
| From net investment income | $ (0.02) | $ (0.03) | $ (0.05) | $ (0.04) | $ (0.01) |
| Total distributions | $ (0.02) | $ (0.03) | $ (0.05) | $ (0.04) | $ (0.01) |
| Net asset value — End of year | $ 11.93 | $ 8.92 | $ 6.63 | $ 6.50 | $ 6.76 |
| Total Return(3) | 33.93% | 35.03% | 2.85% | (3.31)% | 16.38% |
| Ratios/Supplemental Data | |||||
| Net assets, end of year (000’s omitted) | $11,009 | $ 7,841 | $6,752 | $9,996 | $11,938 |
| Ratios (as a percentage of average daily net assets):(4) | |||||
| Total expenses | 2.17% | 2.29% | 2.48% | 2.44% | 2.78% |
| Net expenses | 1.99% | 1.99% | 2.01% | 2.03% | 2.13% |
| Net investment income (loss) | (0.27)% | (0.01)% | 0.38% | 0.59% | 0.55% |
| Portfolio Turnover | 50% | 45% | 40% | 38% | 133% |
| (1) | Computed using average shares outstanding. |
| (2) | Amount is less than $(0.005). |
| (3) | Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested and do not reflect the effect of sales charges, if any. |
| (4) | Total expenses do not reflect amounts reimbursed and/or waived by the adviser and certain of its affiliates, if applicable. Net expenses are net of all reductions and represent the net expenses paid by the Fund. |
25
See Notes to Financial Statements.
Calvert
Global Energy Solutions Fund
September 30, 2021
Financial
Highlights — continued
| Global Energy Solutions Fund — Class I | |||||
| Year Ended September 30, | |||||
| 2021 | 2020 | 2019 | 2018 | 2017 | |
| Net asset value — Beginning of year | $ 9.70 | $ 7.20 | $ 7.07 | $ 7.34 | $ 6.35 |
| Income (Loss) From Operations | |||||
| Net investment income(1) | $ 0.10 | $ 0.08 | $ 0.11 | $ 0.15 | $ 0.13 |
| Net realized and unrealized gain (loss) | 3.31 | 2.52 | 0.14 | (0.31) | 0.97 |
| Total income (loss) from operations | $ 3.41 | $ 2.60 | $ 0.25 | $ (0.16) | $ 1.10 |
| Less Distributions | |||||
| From net investment income | $ (0.10) | $ (0.10) | $ (0.12) | $ (0.11) | $ (0.11) |
| Total distributions | $ (0.10) | $ (0.10) | $ (0.12) | $ (0.11) | $ (0.11) |
| Net asset value — End of year | $ 13.01 | $ 9.70 | $ 7.20 | $ 7.07 | $ 7.34 |
| Total Return(2) | 35.28% | 36.40% | 3.89% | (2.33)% | 17.66% |
| Ratios/Supplemental Data | |||||
| Net assets, end of year (000’s omitted) | $114,371 | $45,676 | $23,867 | $19,178 | $ 5,503 |
| Ratios (as a percentage of average daily net assets):(3) | |||||
| Total expenses | 1.17% | 1.29% | 1.47% | 1.43% | 1.66% |
| Net expenses | 0.99% | 0.99% | 0.98% | 0.93% | 0.97% |
| Net investment income | 0.80% | 1.08% | 1.60% | 2.00% | 1.99% |
| Portfolio Turnover | 50% | 45% | 40% | 38% | 133% |
| (1) | Computed using average shares outstanding. |
| (2) | Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested and do not reflect the effect of sales charges, if any. |
| (3) | Total expenses do not reflect amounts reimbursed and/or waived by the adviser and certain of its affiliates, if applicable. Net expenses are net of all reductions and represent the net expenses paid by the Fund. |
26
See Notes to Financial Statements.
Calvert
Global Water Fund
September 30, 2021
Financial
Highlights
| Global Water Fund — Class A | |||||
| Year Ended September 30, | |||||
| 2021 | 2020 | 2019 | 2018 | 2017 | |
| Net asset value — Beginning of year | $ 21.67 | $ 20.70 | $ 20.00 | $ 19.92 | $ 17.71 |
| Income (Loss) From Operations | |||||
| Net investment income(1) | $ 0.33 | $ 0.14 | $ 0.23 | $ 0.23 | $ 0.20 |
| Net realized and unrealized gain | 6.80 | 1.02 | 0.70 | 0.04 | 2.01 |
| Total income from operations | $ 7.13 | $ 1.16 | $ 0.93 | $ 0.27 | $ 2.21 |
| Less Distributions | |||||
| From net investment income | $ (0.19) | $ (0.19) | $ (0.23) | $ (0.19) | $ — |
| Total distributions | $ (0.19) | $ (0.19) | $ (0.23) | $ (0.19) | $ — |
| Net asset value — End of year | $ 28.61 | $ 21.67 | $ 20.70 | $ 20.00 | $ 19.92 |
| Total Return(2) | 33.05% | 5.57% | 4.86% | 1.34% | 12.48% |
| Ratios/Supplemental Data | |||||
| Net assets, end of year (000’s omitted) | $246,978 | $180,956 | $181,139 | $201,243 | $235,266 |
| Ratios (as a percentage of average daily net assets):(3) | |||||
| Total expenses | 1.29% | 1.34% | 1.38% | 1.39% | 1.46% |
| Net expenses | 1.24% | 1.24% | 1.25% | 1.28% | 1.28% |
| Net investment income | 1.21% | 0.70% | 1.17% | 1.14% | 1.11% |
| Portfolio Turnover | 27% | 35% | 28% | 40% | 34% |
| (1) | Computed using average shares outstanding. |
| (2) | Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested and do not reflect the effect of sales charges, if any. |
| (3) | Total expenses do not reflect amounts reimbursed and/or waived by the adviser and certain of its affiliates, if applicable. Net expenses are net of all reductions and represent the net expenses paid by the Fund. |
27
See Notes to Financial Statements.
Calvert
Global Water Fund
September 30, 2021
Financial
Highlights — continued
| Global Water Fund — Class C | |||||
| Year Ended September 30, | |||||
| 2021 | 2020 | 2019 | 2018 | 2017 | |
| Net asset value — Beginning of year | $ 19.84 | $ 18.98 | $ 18.32 | $ 18.28 | $ 16.37 |
| Income (Loss) From Operations | |||||
| Net investment income (loss)(1) | $ 0.10 | $ (0.02) | $ 0.08 | $ 0.07 | $ 0.07 |
| Net realized and unrealized gain | 6.26 | 0.92 | 0.66 | 0.03 | 1.84 |
| Total income from operations | $ 6.36 | $ 0.90 | $ 0.74 | $ 0.10 | $ 1.91 |
| Less Distributions | |||||
| From net investment income | $ (0.01) | $ (0.04) | $ (0.08) | $ (0.06) | $ — |
| Total distributions | $ (0.01) | $ (0.04) | $ (0.08) | $ (0.06) | $ — |
| Net asset value — End of year | $ 26.19 | $ 19.84 | $ 18.98 | $ 18.32 | $ 18.28 |
| Total Return(2) | 32.05% | 4.75% | 4.08% | 0.61% | 11.67% |
| Ratios/Supplemental Data | |||||
| Net assets, end of year (000’s omitted) | $41,631 | $39,358 | $50,369 | $58,455 | $67,096 |
| Ratios (as a percentage of average daily net assets):(3) | |||||
| Total expenses | 2.04% | 2.09% | 2.13% | 2.14% | 2.17% |
| Net expenses | 1.99% | 1.99% | 2.01% | 2.03% | 2.03% |
| Net investment income (loss) | 0.42% | (0.08)% | 0.43% | 0.40% | 0.41% |
| Portfolio Turnover | 27% | 35% | 28% | 40% | 34% |
| (1) | Computed using average shares outstanding. |
| (2) | Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested and do not reflect the effect of sales charges, if any. |
| (3) | Total expenses do not reflect amounts reimbursed and/or waived by the adviser and certain of its affiliates, if applicable. Net expenses are net of all reductions and represent the net expenses paid by the Fund. |
28
See Notes to Financial Statements.
Calvert
Global Water Fund
September 30, 2021
Financial
Highlights — continued
| Global Water Fund — Class I | |||||
| Year Ended September 30, | |||||
| 2021 | 2020 | 2019 | 2018 | 2017 | |
| Net asset value — Beginning of year | $ 21.83 | $ 20.85 | $ 20.15 | $ 20.08 | $ 17.79 |
| Income (Loss) From Operations | |||||
| Net investment income(1) | $ 0.40 | $ 0.20 | $ 0.29 | $ 0.36 | $ 0.30 |
| Net realized and unrealized gain (loss) | 6.86 | 1.02 | 0.70 | (0.02) | 1.99 |
| Total income from operations | $ 7.26 | $ 1.22 | $ 0.99 | $ 0.34 | $ 2.29 |
| Less Distributions | |||||
| From net investment income | $ (0.25) | $ (0.24) | $ (0.29) | $ (0.27) | $ — |
| Total distributions | $ (0.25) | $ (0.24) | $ (0.29) | $ (0.27) | $ — |
| Net asset value — End of year | $ 28.84 | $ 21.83 | $ 20.85 | $ 20.15 | $ 20.08 |
| Total Return(2) | 33.41% | 5.83% | 5.18% | 1.68% | 12.87% |
| Ratios/Supplemental Data | |||||
| Net assets, end of year (000’s omitted) | $274,586 | $189,141 | $179,839 | $170,996 | $16,094 |
| Ratios (as a percentage of average daily net assets):(3) | |||||
| Total expenses | 1.04% | 1.09% | 1.13% | 1.14% | 1.12% |
| Net expenses | 0.99% | 0.99% | 0.97% | 0.93% | 0.93% |
| Net investment income | 1.47% | 0.97% | 1.48% | 1.78% | 1.61% |
| Portfolio Turnover | 27% | 35% | 28% | 40% | 34% |
| (1) | Computed using average shares outstanding. |
| (2) | Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested and do not reflect the effect of sales charges, if any. |
| (3) | Total expenses do not reflect amounts reimbursed and/or waived by the adviser and certain of its affiliates, if applicable. Net expenses are net of all reductions and represent the net expenses paid by the Fund. |
29
See Notes to Financial Statements.
Calvert
Global Energy Solutions Fund
Global Water Fund
September 30, 2021
Notes to Financial
Statements
1 Significant Accounting Policies
Calvert Global Energy Solutions Fund (Global Energy Solutions)
and Calvert Global Water Fund (Global Water) (each a Fund and collectively, the Funds) are diversified series of Calvert Impact Fund, Inc. (the Corporation). The Corporation is a Maryland corporation registered under the Investment Company Act of
1940, as amended (the 1940 Act), as an open-end management investment company. The investment objective of Global Energy Solutions is to seek to track the performance of the Calvert Global Energy Research Index. Global Energy Solutions invests in
equity securities of U.S. and non-U.S. companies whose main business is sustainable energy solutions, or that are significantly involved in the sustainable energy solutions industry. The investment objective of Global Water is to seek to track the
performance of the Calvert Global Water Research Index. Global Water invests in equity securities of U.S. and non-U.S. companies whose main business is in the water industry, or that are significantly involved in water-related services or
technologies.
Each Fund offers three classes of shares.
Class A shares are generally sold subject to a sales charge imposed at time of purchase. A contingent deferred sales charge of 0.80% may apply to certain redemptions of Class A shares for accounts for which no sales charge was paid, if redeemed
within 12 months of purchase. Class C shares are sold without a front-end sales charge, and with certain exceptions, are charged a contingent deferred sales charge of 1% on shares redeemed within 12 months of purchase. Class C shares are only
available for purchase through a financial intermediary. Effective January 25, 2019, Class C shares generally automatically convert to Class A shares ten years after their purchase and, effective November 5, 2020, automatically convert to Class A
shares eight years after their purchase as described in the Funds’ prospectus. Class I shares are sold at net asset value, are not subject to a sales charge and are sold only to certain eligible investors. Each class represents a pro rata
interest in each Fund, but votes separately on class-specific matters and is subject to different expenses.
Each Fund applies the accounting and reporting guidance in the
Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services – Investment Companies (ASC 946). Subsequent events, if any, through the date that the
financial statements were issued have been evaluated in the preparation of the financial statements.
A Investment
Valuation— Net asset value per share is determined every business day as of the close of the regular session of the New York Stock Exchange (generally 4:00 p.m. Eastern time).
The Funds use independent pricing services approved by the Board of Directors (the Board) to value their investments wherever possible. Investments for which market quotations are not available or deemed not reliable are fair valued in good faith
under the direction of the Board.
U.S. generally
accepted accounting principles (U.S. GAAP) establishes a disclosure hierarchy that categorizes the inputs to valuation techniques used to value assets and liabilities at measurement date. These inputs are summarized in the three broad levels listed
below:
Level 1 – quoted prices in active markets
for identical securities
Level 2 – other
significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
Level 3 – significant unobservable inputs (including each
Fund's own assumptions in determining the fair value of investments)
The inputs or methodologies used for valuing securities are not
necessarily an indication of the risk associated with investing in those securities.
Valuation techniques used to value each Fund’s
investments by major category are as follows:
Equity
Securities. Equity securities (including warrants and rights) listed on a U.S. securities exchange generally are valued at the last sale or closing price as reported by an independent pricing service on the primary
market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. Equity securities listed on the NASDAQ National Market System are valued at the NASDAQ official closing price and are categorized as Level 1 in the
hierarchy. Unlisted or listed securities for which closing sales prices or closing quotations are not available are valued at the mean between the latest available bid and ask prices and are categorized as Level 2 in the hierarchy. The daily
valuation of exchange-traded foreign securities generally is determined as of the close of trading on the principal exchange on which such securities trade. Events occurring after the close of trading on foreign exchanges may result in adjustments
to the valuation of foreign securities to more accurately reflect their fair value as of the close of regular trading on the New York Stock Exchange. When valuing foreign equity securities that meet certain criteria, the Funds' Board has approved
the use of a fair value service that values such securities to reflect market trading that occurs after the close of the applicable foreign markets of comparable securities or other instruments that have a strong correlation to the fair-valued
securities. Such securities are categorized as Level 2 in the hierarchy.
Debt Securities. Debt
securities are generally valued based on valuations provided by third party pricing services, as derived from such services’ pricing models. Inputs to the models may include, but are not limited to, reported trades, executable bid and ask
prices, broker/dealer quotations, prices or yields of securities with similar characteristics, interest rates, anticipated prepayments, benchmark curves or information pertaining to the issuer, as well as industry and economic events. Accordingly,
debt securities are generally categorized as Level 2 in the hierarchy. Short-term debt securities with a remaining maturity at time of purchase of more than sixty days are valued based on valuations provided by a third party pricing service. Such
securities are generally categorized as Level 2 in the hierarchy. Short-term debt securities of sufficient credit quality purchased with remaining maturities of sixty days or less for which a valuation from a third party pricing service is not
readily available may be valued at amortized cost, which approximates fair value, and are categorized as Level 2 in the hierarchy.
30
Calvert
Global Energy Solutions Fund
Global Water Fund
September 30, 2021
Notes to Financial
Statements — continued
Affiliated Fund. The Funds may
invest in Calvert Cash Reserves Fund, LLC (Cash Reserves Fund), an affiliated investment company managed by Calvert Research and Management (CRM). While Cash Reserves Fund is not a registered money market mutual fund, it conducts all of its
investment activities in accordance with the requirements of Rule 2a-7 under the 1940 Act. Investments in Cash Reserves Fund are valued at the closing net asset value per unit on the valuation day and are categorized as Level 2 in the hierarchy.
Cash Reserves Fund generally values its investment securities based on available market quotations provided by a third party pricing service.
Other Securities. Investments
in registered investment companies (including money market funds) that do not trade on an exchange are valued at the net asset value per share on the valuation day and are categorized as Level 1 in the hierarchy.
Fair Valuation. If a market
value cannot be determined for a security using the methodologies described above, or if, in the good faith opinion of the Funds’ adviser, the market value does not constitute a readily available market quotation, or if a significant event has
occurred that would materially affect the value of the security, the security will be fair valued as determined in good faith by or at the direction of the Board in a manner that most fairly reflects the security’s “fair value”,
which is the amount that the Funds might reasonably expect to receive for the security upon its current sale in the ordinary course. Each such determination is based on a consideration of relevant factors, which are likely to vary from one pricing
context to another. These factors may include, but are not limited to, the type of security, the existence of any contractual restrictions on the security’s disposition, the price and extent of public trading in similar securities of the
issuer or of comparable companies or entities, quotations or relevant information obtained from broker/dealers or other market participants, information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange-traded
securities), an analysis of the company’s or entity’s financial statements, and an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold.
The values assigned to fair value investments are based on
available information and do not necessarily represent amounts that might ultimately be realized. Further, due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have
been used had an active market existed, and the differences could be material.
The following tables summarize the market value of each of the
Funds' holdings as of September 30, 2021, based on the inputs used to value them:
Global Energy
Solutions
| Asset Description | Level 1 | Level 2 | Level 3 | Total |
| Common Stocks: | ||||
| Australia | $ — | $ 1,668,021 | $ — | $ 1,668,021 |
| Austria | — | 1,423,877 | — | 1,423,877 |
| Belgium | — | 1,954,633 | — | 1,954,633 |
| Brazil | 2,273,840 | — | — | 2,273,840 |
| Canada | 9,943,820 | — | — | 9,943,820 |
| China | 2,516,767 | 12,899,175 | — | 15,415,942 |
| Denmark | — | 5,543,115 | — | 5,543,115 |
| Finland | — | 1,215,572 | — | 1,215,572 |
| France | — | 11,519,797 | — | 11,519,797 |
| Germany | — | 15,150,766 | — | 15,150,766 |
| Greece | — | 1,043,876 | — | 1,043,876 |
| Ireland | — | 2,405,172 | — | 2,405,172 |
| Italy | — | 5,896,838 | — | 5,896,838 |
| Japan | — | 10,625,076 | — | 10,625,076 |
| Netherlands | — | 2,893,009 | — | 2,893,009 |
| New Zealand | — | 4,139,739 | — | 4,139,739 |
| Norway | — | 2,625,286 | — | 2,625,286 |
| Singapore | 1,405,164 | 2,497,673 | — | 3,902,837 |
| South Korea | — | 4,952,844 | — | 4,952,844 |
| Spain | 1,235,355 | 8,999,675 | — | 10,235,030 |
| Sweden | — | 4,380,658 | — | 4,380,658 |
| Switzerland | — | 3,709,101 | — | 3,709,101 |
| Taiwan | — | 12,019,734 | — | 12,019,734 |
31
Calvert
Global Energy Solutions Fund
Global Water Fund
September 30, 2021
Notes to Financial
Statements — continued
Global Energy Solutions — continued
| Asset Description | Level 1 | Level 2 | Level 3 | Total |
| Thailand | $ — | $ 2,196,420 | $ — | $ 2,196,420 |
| United Kingdom | 1,216,940 | 8,089,083 | — | 9,306,023 |
| United States | 76,405,161 | — | — | 76,405,161 |
| Total Common Stocks | $94,997,047 | $127,849,140 (1) | $ — | $222,846,187 |
| High Social Impact Investments | $ — | $ 309,203 | $ — | $ 309,203 |
| Short-Term Investments: | ||||
| Affiliated Fund | — | 970,203 | — | 970,203 |
| Securities Lending Collateral | 2,653,387 | — | — | 2,653,387 |
| Total Investments | $97,650,434 | $129,128,546 | $ — | $226,778,980 |
| (1) | Includes foreign equity securities whose values were adjusted to reflect market trading of comparable securities or other correlated instruments that occurred after the close of trading in their applicable foreign markets. |
Global
Water
| Asset Description | Level 1 | Level 2 | Level 3(1) | Total |
| Common Stocks: | ||||
| Australia | $ — | $ 12,363,705 | $ — | $ 12,363,705 |
| Brazil | 17,585,946 | — | — | 17,585,946 |
| Canada | 9,455,313 | — | — | 9,455,313 |
| Chile | — | 9,094,767 | — | 9,094,767 |
| China | — | 26,728,053 | — | 26,728,053 |
| Denmark | — | 2,719,428 | — | 2,719,428 |
| Finland | — | 10,337,855 | — | 10,337,855 |
| France | — | 25,884,062 | — | 25,884,062 |
| Germany | — | 6,082,647 | — | 6,082,647 |
| Italy | — | 8,725,161 | — | 8,725,161 |
| Japan | — | 56,417,262 | — | 56,417,262 |
| Netherlands | — | 8,254,235 | — | 8,254,235 |
| Singapore | — | 3,126,222 | 0 | 3,126,222 |
| South Korea | — | 6,023,433 | — | 6,023,433 |
| Spain | — | 5,866,314 | — | 5,866,314 |
| Switzerland | 1,555,427 | 22,436,913 | — | 23,992,340 |
| Taiwan | — | 2,984,301 | — | 2,984,301 |
| Thailand | — | 9,082,378 | — | 9,082,378 |
| United Kingdom | 3,164,139 | 45,626,379 | — | 48,790,518 |
| United States | 265,696,931 | — | — | 265,696,931 |
| Total Common Stocks | $297,457,756 | $261,753,115 (2) | $ 0 | $559,210,871 |
| High Social Impact Investments | $ — | $ 1,224,234 | $ — | $ 1,224,234 |
| Short-Term Investments: | ||||
| Affiliated Fund | — | 2,930,857 | — | 2,930,857 |
32
Calvert
Global Energy Solutions Fund
Global Water Fund
September 30, 2021
Notes to Financial
Statements — continued
Global Water — continued
| Asset Description | Level 1 | Level 2 | Level 3(1) | Total |
| Securities Lending Collateral | $ 12,161,176 | $ — | $ — | $ 12,161,176 |
| Total Investments | $309,618,932 | $265,908,206 | $ 0 | $575,527,138 |
| (1) | None of the unobservable inputs for Level 3 assets, individually or collectively, had a material impact on the Fund. |
| (2) | Includes foreign equity securities whose values were adjusted to reflect market trading of comparable securities or other correlated instruments that occurred after the close of trading in their applicable foreign markets. |
Level 3 investments at the beginning and/or end of the period
in relation to net assets were not significant and accordingly, a reconciliation of Level 3 assets for the year ended September 30, 2021 is not presented.
B Investment Transactions and Income— Investment transactions for financial statement purposes are accounted for on trade date. Realized gains and losses are recorded on an identified cost basis and may include
proceeds from litigation. Dividend income is recorded on the ex-dividend date for dividends received in cash and/or securities or, in
the case of dividends on certain foreign securities, as soon as the Fund is informed of the ex-dividend date. Non-cash dividends are
recorded at the fair value of the securities received. Withholding taxes on foreign dividends, if any, have been provided for in
accordance with the Funds' understanding of the applicable country’s tax rules and rates. In consideration of recent decisions
rendered by European courts, Global Water has filed additional tax reclaims for previously withheld taxes on dividends earned in certain European Union countries. These filings are subject to various administrative and judicial proceedings within
these countries. Due to the uncertainty as to the ultimate resolution of these proceedings, the likelihood of receipt of these reclaims, and the potential timing of payment, no amounts are reflected in the financial statements for such outstanding
reclaims. Distributions received that represent a return of capital are recorded as a reduction of cost of investments. Distributions
received that represent a capital gain are recorded as a realized gain. Interest income, which includes amortization of premium and
accretion of discount on debt securities, is accrued as earned.
C Share Class Accounting— Realized and unrealized gains and losses and net investment income and losses, other than class-specific expenses, are allocated daily to each class of shares based upon the
relative net assets of each class to the total net assets of each Fund. Expenses arising in connection with a specific class are charged directly to that class.
D Foreign Currency Transactions— The Funds’ accounting records are maintained in U.S. dollars. For valuation of assets and liabilities on each date of net asset value determination, foreign denominations
are converted into U.S. dollars using the current exchange rate. Security transactions, income and expenses are translated at the prevailing rate of exchange on the date of the event. Recognized gains or losses on investment transactions
attributable to changes in foreign currency exchange rates are recorded for financial statement purposes as net realized gains and losses on investments. That portion of unrealized gains and losses on investments that results from fluctuations in
foreign currency exchange rates is not separately disclosed.
E Restricted Securities— The Funds may invest in securities that are subject to legal or contractual restrictions on resale. Generally, these securities may only be sold publicly upon registration under
the Securities Act of 1933 or in transactions exempt from such registration. Information regarding restricted securities (excluding Rule 144A securities) is included at the end of each Fund's Schedule of Investments.
F Distributions to Shareholders— Distributions to shareholders are recorded by the Funds on ex-dividend date. Distributions from net investment income and distributions from net realized capital gains, if any,
are paid at least annually. Distributions are declared separately for each class of shares. Distributions are determined in accordance with income tax regulations, which may differ from U.S. GAAP; accordingly, periodic reclassifications are made
within the Funds' capital accounts to reflect income and gains available for distribution under income tax regulations.
G Estimates— The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.
H
Indemnifications— The Corporation’s By-Laws provide for indemnification for Directors or officers of the Corporation and certain other parties, to the fullest extent
permitted by Maryland law and the 1940 Act, provided certain conditions are met. Additionally, in the normal course of business, each Fund enters into agreements with service providers that may contain indemnification clauses. Each Fund’s
maximum exposure under these arrangements is unknown as this would involve future claims that may be made against each Fund that have not yet occurred.
I Federal Income
Taxes— No provision for federal income or excise tax is required since each Fund intends to continue to qualify as a regulated investment company under the Internal Revenue
Code and to distribute substantially all of its taxable earnings.
33
Calvert
Global Energy Solutions Fund
Global Water Fund
September 30, 2021
Notes to Financial
Statements — continued
In
addition to the requirements of the Internal Revenue Code, each Fund may also be subject to local taxes on the recognition of capital gains in certain countries. In determining the daily net asset value, each Fund estimates the accrual for such
taxes, if any, based on the unrealized appreciation on certain portfolio securities and the related tax rates. Taxes attributable to unrealized appreciation are included in the respective Fund's change in unrealized appreciation (depreciation) on
investments. Capital gains taxes on securities sold are included in the respective Fund's net realized gain (loss) on investments.
Management has analyzed the Funds’ tax positions taken
for all open federal income tax years and has concluded that no provision for federal income tax is required in the Funds’ financial statements. Each Fund’s federal tax return is subject to examination by the Internal Revenue Service for
a period of three years from the date of filing.
2 Related Party Transactions
The investment advisory fee is earned by CRM as compensation
for investment advisory services rendered to each Fund. On March 1, 2021, Morgan Stanley acquired Eaton Vance Corp. (the “Transaction”) and CRM became an indirect, wholly-owned subsidiary of Morgan Stanley. In connection with the
Transaction, each Fund entered into a new investment advisory agreement (each a “New Agreement”) with CRM, which took effect on March 1, 2021. Pursuant to each New Agreement (and each Fund's investment advisory agreement with CRM in
effect prior to March 1, 2021), the fee is computed at the following annual rates of each respective Fund's average daily net assets and is payable monthly:
Global Energy Solutions0.75%
Global
Water
Up to and including $250 Million0.75%
Over $250 Million0.70%
For the year
ended September 30, 2021, the investment advisory fee for Global Energy Solutions and Global Water amounted to $1,459,231 and $3,723,407, respectively, or 0.75% and 0.72%, respectively, of each Fund’s average daily net assets. The Funds may
invest their cash in Cash Reserves Fund. CRM does not currently receive a fee for advisory services provided to Cash Reserves Fund.
CRM has agreed to reimburse the Funds' operating expenses to
the extent that total annual operating expenses (relating to ordinary operating expenses only and excluding expenses such as brokerage commissions, acquired fund fees and expenses of unaffiliated funds, borrowing costs, taxes or litigation expenses)
exceed 1.24%, 1.99% and 0.99% of each Fund’s average daily net assets for Class A, Class C and Class I, respectively. The expense reimbursement agreements with CRM may be changed or terminated after January 31, 2022. For the year ended
September 30, 2021, CRM waived or reimbursed expenses of $349,085 and $284,409 for Global Energy Solutions and Global Water, respectively.
The administrative fee is earned by CRM as compensation for
administrative services rendered to the Funds. The fee is computed at an annual rate of 0.12% of each Fund’s average daily net assets attributable to Class A, Class C and Class I and is payable monthly. For the year ended September 30, 2021,
CRM was paid administrative fees of $233,477 and $616,870 for Global Energy Solutions and Global Water, respectively.
Each Fund has in effect a distribution plan for Class A shares
(Class A Plan) pursuant to Rule 12b-1 under the 1940 Act. Pursuant to the Class A Plan, each Fund pays Eaton Vance Distributors, Inc. (EVD), an affiliate of CRM and the Funds' principal underwriter, a distribution and service fee of 0.25% per annum
of its average daily net assets attributable to Class A shares for distribution services and facilities provided to the Funds by EVD, as well as for personal services and/or the maintenance of shareholder accounts. Each Fund also has in effect a
distribution plan for Class C shares (Class C Plan) pursuant to Rule 12b-1 under the 1940 Act. Pursuant to the Class C Plan, each Fund pays EVD amounts equal to 0.75% per annum of its average daily net assets attributable to Class C shares for
providing ongoing distribution services and facilities to the Funds. In addition, pursuant to the Class C Plan, each Fund also makes payments of service fees to EVD, financial intermediaries and other persons in amounts equal to 0.25% per annum of
its average daily net assets attributable to that class. Service fees paid or accrued are for personal services and/or the maintenance of shareholder accounts. Distribution and service fees for Global Energy Solutions and Global Water paid or
accrued for the year ended September 30, 2021 amounted to $228,559 and $566,637, respectively, for Class A shares and $102,991 and $422,227, respectively, for Class C shares.
The Funds were informed that EVD received $62,662 and $65,937
for Global Energy Solutions and Global Water, respectively, as their portion of the sales charge on sales of Class A shares for the year ended September 30, 2021. The Funds were informed that Morgan Stanley affiliated broker-dealers, which may be
deemed to be affiliates of CRM and EVD, also received a portion of the sales charge on sales of Class A shares from March 1, 2021 through September 30, 2021 in the amount of $3,665 for Global Water and none for Global Energy Solutions.
For the year ended September 30, 2021, the Funds were also
informed that EVD received the following amounts of contingent deferred sales charges paid by Class A and Class C shareholders:
34
Calvert
Global Energy Solutions Fund
Global Water Fund
September 30, 2021
Notes to Financial
Statements — continued
| Global Energy Solutions | Global Water | |
| Class A | $ 16 | $ 78 |
| Class C | 509 | 850 |
Eaton Vance Management (EVM), an
affiliate of CRM, provides sub-transfer agency and related services to the Funds pursuant to a Sub-Transfer Agency Support Services Agreement. For the year ended September 30, 2021, sub-transfer agency fees and expenses for Global Energy Solutions
and Global Water incurred to EVM amounted to $57,709 and $102,807, respectively, and are included in transfer agency fees and expenses on the Statements of Operations.
Each Director of the Funds who is not an employee of CRM or its
affiliates receives an annual fee of $154,000, plus an annual Committee fee ranging from $8,500 to $16,500 depending on the Committee. The Board chair receives an additional $30,000 ($20,000 prior to January 1, 2021) annual fee and Committee chairs
receive an additional $6,000 annual fee. Eligible Directors may participate in a Deferred Compensation Plan (the Plan). Amounts deferred under the Plan are treated as though equal dollar amounts had been invested in shares of the Funds or other
Calvert funds selected by the Directors. The Funds purchase shares of the funds selected equal to the dollar amounts deferred under the Plan, resulting in an asset equal to the deferred compensation liability. Obligations of the Plan are paid solely
from the Funds' assets. Directors’ fees are allocated to each of the Calvert funds served. Salaries and fees of officers and Directors of the Funds who are employees of CRM or its affiliates are paid by CRM. Prior to December 31, 2020, an
Advisory Council aided the Board and CRM in advancing the cause of responsible investing through original scholarship and thought leadership. The Advisory Council consisted of CRM’s Chief Executive Officer and three additional members. For the
year ended December 31, 2020, each member (other than CRM’s Chief Executive Officer) was compensated $20,000 for their service on the Advisory Council. Such compensation, and any other compensation and/or expenses incurred by the Advisory
Council as may be approved by the Board, was borne by the Calvert funds. For the year ended September 30, 2021, Global Energy Solutions' and Global Water's allocated portion of the Advisory Council compensation and fees was $161 and $308,
respectively, which are included in miscellaneous expense on the Statements of Operations.
3 Investment Activity
During the year ended September 30, 2021, the cost of purchases
and proceeds from sales of investments, other than short-term securities, were as follows:
| Global Energy Solutions | Global Water | |
| Purchases | $164,312,531 | $159,424,475 |
| Sales | 96,066,183 | 134,798,701 |
4 Distributions to
Shareholders and Income Tax Information
The tax character
of distributions declared for the years ended September 30, 2021 and September 30, 2020 was as follows:
| Global Energy Solutions | Global Water | |||
| Year Ended September 30, | Year Ended September 30, | |||
| 2021 | 2020 | 2021 | 2020 | |
| Ordinary income | $1,155,973 | $916,056 | $3,767,104 | $3,809,858 |
During the year ended September 30,
2021, the following amounts were reclassified due to non-deductible expenses and the use of equalization accounting for Global Energy Solutions and use of equalization accounting for Global Water. Tax
equalization accounting allows the Funds to treat as a distribution that portion of redemption proceeds representing a redeeming shareholder’s portion of undistributed taxable income and net capital gains.
These reclassifications had no effect on the net assets or net asset value per
share of the Funds.
35
Calvert
Global Energy Solutions Fund
Global Water Fund
September 30, 2021
Notes to Financial
Statements — continued
| Global Energy Solutions | Global Water | |
| Change in: | ||
| Paid-in capital | $ 94,917 | $ 334,885 |
| Distributable earnings (Accumulated loss) | $(94,917) | $(334,885) |
As of September 30, 2021, the
components of distributable earnings (accumulated loss) on a tax basis were as follows:
| Global Energy Solutions | Global Water | |
| Undistributed ordinary income | $ 894,015 | $ 5,727,090 |
| Deferred capital losses | (37,797,659) | (7,587,478) |
| Net unrealized appreciation | 34,021,571 | 160,304,071 |
| Distributable earnings (Accumulated loss) | $ (2,882,073) | $158,443,683 |
At September 30, 2021, the Funds,
for federal income tax purposes, had the following deferred capital losses which would reduce the respective Fund’s taxable income arising from future net realized gains on investment transactions, if any, to the extent permitted by the
Internal Revenue Code, and thus would reduce the amount of distributions to shareholders, which would otherwise be necessary to relieve the Funds of any liability for federal income or excise tax. The deferred capital losses are treated as arising
on the first day of the Funds’ next taxable year, can be carried forward for an unlimited period, and retain the same short-term or long term character as when originally deferred.
The amounts of the deferred capital losses are as
follows:
| Global Energy Solutions | Global Water | |
| Deferred capital losses: | ||
| Short-term | $ — | $(7,587,478) |
| Long-term | (37,797,659) | — |
The cost and unrealized appreciation
(depreciation) of investments of the Funds at September 30, 2021, as determined on a federal income tax basis, were as follows:
| Global Energy Solutions | Global Water | |
| Aggregate cost | $192,729,940 | $415,215,097 |
| Gross unrealized appreciation | $ 41,561,546 | $ 184,173,218 |
| Gross unrealized depreciation | (7,512,506) | (23,861,177) |
| Net unrealized appreciation | $ 34,049,040 | $160,312,041 |
5 Securities
Lending
To generate additional income, the Funds may lend
their securities pursuant to a securities lending agency agreement with State Street Bank and Trust Company (SSBT), the securities lending agent. Security loans are subject to termination by the Funds at any time and, therefore, are not considered
illiquid investments. The Funds require that the loan be continuously collateralized by either cash or securities in an amount at least equal to the market value of the securities on loan. The market value of securities loaned is determined daily
and any additional required collateral is delivered to the Funds on the next business day. Cash collateral is generally invested in a money market fund registered under the 1940 Act that is managed by an affiliate of SSBT. Any gain or loss in the
market price of the loaned securities that might occur and any interest earned or dividends declared during the term of the loan would accrue to the account of the Funds. Income earned on the investment of collateral, net of broker rebates and other
expenses incurred by the securities lending agent, is split between the Funds and the securities lending agent based on agreed upon contractual terms. Non-cash collateral, if any, is held by the lending agent on behalf of a Fund and cannot be sold
or re-pledged by the Fund; accordingly, such collateral is not reflected in the Statement of Assets and Liabilities.
36
Calvert
Global Energy Solutions Fund
Global Water Fund
September 30, 2021
Notes to Financial
Statements — continued
The
risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights to the collateral should the borrower fail
financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. The securities lending agent shall indemnify the Funds in the case of default of any securities borrower.
At September 30, 2021, the total value of securities on loan
and the total value of collateral received were as follows:
| Global Energy Solutions | Global Water | |
| Securities on Loan | $ 9,194,758 | $ 21,413,354 |
| Collateral Received: | ||
| Cash | 2,653,387 | 12,161,176 |
| U.S. government and/or agencies securities | 6,872,291 | 10,540,068 |
| Total Collateral Received | $9,525,678 | $22,701,244 |
The following tables provide a
breakdown of securities lending transactions accounted for as secured borrowings, the obligations by class of collateral pledged, and the remaining contractual maturity of those transactions as of September 30, 2021.
| Global Energy Solutions | Remaining Contractual Maturity of the Transactions | ||||
| Overnight
and Continuous |
<30 days | 30 to 90 days | >90 days | Total | |
| Common Stocks | $2,653,387 | $ — | $ — | $ — | $2,653,387 |
| Global Water | Remaining Contractual Maturity of the Transactions | ||||
| Overnight
and Continuous |
<30 days | 30 to 90 days | >90 days | Total | |
| Common Stocks | $12,161,176 | $ — | $ — | $ — | $12,161,176 |
The carrying amounts of the
liabilities for deposits for securities loaned at September 30, 2021 approximated their fair value. If measured at fair value, such liabilities would have been considered as Level 2 in the fair value hierarchy (see Note 1A) at September 30,
2021.
6 Line of Credit
The Funds participate with other portfolios and funds managed
by EVM and its affiliates, including CRM, in an $800 million unsecured line of credit with a group of banks, which is in effect through October 26, 2021. Borrowings are made by the Funds solely for temporary purposes related to redemptions and other
short-term cash needs. Interest is charged to each Fund based on its borrowings at an amount above either the Eurodollar rate or Federal Funds rate. In addition, a fee computed at an annual rate of 0.15% on the daily unused portion of the line of
credit is allocated among the participating portfolios and funds at the end of each quarter. In connection with the renewal of the agreement in October 2020, an upfront fee and arrangement fee totaling $950,000 was incurred that was allocated to the
participating portfolios and funds. Because the line of credit is not available exclusively to the Funds, a Fund may be unable to borrow some or all of its requested amounts at any particular time.
The Funds had no borrowings outstanding pursuant to their line
of credit at September 30, 2021. The Funds did not have any significant borrowings or allocated fees during the year ended September 30, 2021. Effective October
26, 2021, the Funds renewed their line of credit agreement, which expires October 25, 2022, at substantially the same terms.
7 Affiliated Issuers and Funds
Each Fund has invested a portion of its assets in notes (the
Notes) issued by Calvert Impact Capital, Inc. (CIC), pursuant to exemptive relief granted by the U.S. Securities and Exchange Commission (the SEC). There are certain potential points of affiliation between the Funds and CIC. CRM has licensed use of
the Calvert name to CIC and provides other types of support. CRM’s President and Chief Executive Officer (and the only director/trustee on the Fund Board that is an “interested person” of the Funds) serves on the CIC Board. In
addition, another director/trustee on the Fund Board serves as a director emeritus on the CIC Board.
37
Calvert
Global Energy Solutions Fund
Global Water Fund
September 30, 2021
Notes to Financial
Statements — continued
At
September 30, 2021, the value of each Fund's investment in the Notes and affiliated funds was $1,166,769 for Global Energy Solutions, which represents 0.5% of its net assets and $3,550,040 for Global Water, which represents 0.6% of its net assets.
Transactions in the Notes and affiliated funds by the Funds for the year ended September 30, 2021 were as follows:
Global Energy
Solutions
| Name | Value,
beginning of period |
Purchases | Sales
proceeds |
Net
realized gain (loss) |
Change
in unrealized appreciation (depreciation) |
Value,
end of period |
Interest/
Dividend income |
Principal
amount/Units, end of period |
| High Social Impact Investments | ||||||||
| Calvert Impact Capital, Inc., Community Investment Notes: | ||||||||
| 1.50%, 12/15/20(1) | $ 262,231 | $ — | $ (263,568) | $ — | $ 1,337 | $ — | $ 824 | $ — |
| 1.50%, 12/15/23(1) | — | 200,000 | — | — | (3,434) | 196,566 | 2,383 | 200,000 |
| Short-Term Investments | ||||||||
| Calvert Cash Reserves Fund, LLC | 258,630 | 44,903,119 | (44,191,571) | (66) | 91 | 970,203 | 802 | 970,106 |
| Totals | $ (66) | $ (2,006) | $1,166,769 | $ 4,009 | ||||
| (1) | Restricted security. |
Global Water
| Name | Value,
beginning of period |
Purchases | Sales
proceeds |
Net
realized gain (loss) |
Change
in unrealized appreciation (depreciation) |
Value,
end of period |
Interest/
Dividend income |
Principal
amount/Units, end of period |
| High Social Impact Investments | ||||||||
| Calvert Impact Capital, Inc., Community Investment Notes: | ||||||||
| 1.50%, 12/15/20(1) | $1,317,403 | $ — | $ (1,324,116) | $ — | $ 6,713 | $ — | $ 4,138 | $ — |
| 1.50%, 12/15/23(1) | — | 630,000 | — | — | (10,817) | 619,183 | 7,507 | 630,000 |
| Short-Term Investments | ||||||||
| Calvert Cash Reserves Fund, LLC | 1,005,664 | 48,188,492 | (46,263,277) | (309) | 287 | 2,930,857 | 1,105 | 2,930,564 |
| Totals | $(309) | $ (3,817) | $3,550,040 | $12,750 | ||||
| (1) | Restricted security. |
8 Capital
Shares
The Corporation may issue its shares in one or
more series (such as the Funds). The authorized shares of each Fund consists of 75,000,000 common shares, $0.01 par value, for each Class.
Transactions in capital shares for the years ended September
30, 2021 and September 30, 2020 were as follows:
38
Calvert
Global Energy Solutions Fund
Global Water Fund
September 30, 2021
Notes to Financial
Statements — continued
Global Energy Solutions
| Year
Ended September 30, 2021 |
Year
Ended September 30, 2020 | ||||
| Shares | Amount | Shares | Amount | ||
| Class A | |||||
| Shares sold | 2,383,314 | $ 30,070,042 | 754,608 | $ 5,816,261 | |
| Reinvestment of distributions | 44,331 | 530,637 | 63,936 | 495,506 | |
| Shares redeemed | (1,288,358) | (16,341,022) | (1,071,928) | (8,061,751) | |
| Converted from Class C | 140,620 | 1,634,712 | 79,273 | 598,480 | |
| Net increase (decrease) | 1,279,907 | $ 15,894,369 | (174,111) | $ (1,151,504) | |
| Class C | |||||
| Shares sold | 340,490 | $ 4,055,452 | 118,738 | $ 859,345 | |
| Reinvestment of distributions | 1,094 | 12,290 | 3,456 | 25,163 | |
| Shares redeemed | (147,435) | (1,761,280) | (176,751) | (1,242,670) | |
| Converted to Class A | (150,565) | (1,634,712) | (84,574) | (598,480) | |
| Net increase (decrease) | 43,584 | $ 671,750 | (139,131) | $ (956,642) | |
| Class I | |||||
| Shares sold | 6,761,201 | $ 87,955,567 | 2,478,591 | $ 19,373,804 | |
| Reinvestment of distributions | 46,193 | 561,712 | 44,987 | 353,601 | |
| Shares redeemed | (2,727,005) | (35,172,515) | (1,128,620) | (8,542,562) | |
| Net increase | 4,080,389 | $ 53,344,764 | 1,394,958 | $11,184,843 | |
Global Water
| Year
Ended September 30, 2021 |
Year
Ended September 30, 2020 | ||||
| Shares | Amount | Shares | Amount | ||
| Class A | |||||
| Shares sold | 1,224,165 | $ 33,471,723 | 1,009,457 | $ 20,886,003 | |
| Reinvestment of distributions | 58,166 | 1,458,802 | 67,917 | 1,499,614 | |
| Shares redeemed | (1,232,467) | (32,868,802) | (1,566,924) | (31,683,730) | |
| Converted from Class C | 233,616 | 6,154,516 | 88,411 | 1,756,087 | |
| Net increase (decrease) | 283,480 | $ 8,216,239 | (401,139) | $ (7,542,026) | |
| Class C | |||||
| Shares sold | 231,435 | $ 5,877,257 | 165,165 | $ 3,190,157 | |
| Reinvestment of distributions | 497 | 11,475 | 4,561 | 92,739 | |
| Shares redeemed | (371,062) | (8,987,031) | (744,118) | (13,975,105) | |
| Converted to Class A | (254,816) | (6,154,516) | (96,329) | (1,756,087) | |
| Net decrease | (393,946) | $ (9,252,815) | (670,721) | $(12,448,296) | |
39
Calvert
Global Energy Solutions Fund
Global Water Fund
September 30, 2021
Notes to Financial
Statements — continued
Global Water — continued
| Year
Ended September 30, 2021 |
Year
Ended September 30, 2020 | ||||
| Shares | Amount | Shares | Amount | ||
| Class I | |||||
| Shares sold | 2,444,848 | $ 67,005,702 | 2,263,617 | $ 46,188,116 | |
| Reinvestment of distributions | 77,478 | 1,954,775 | 81,579 | 1,811,063 | |
| Shares redeemed | (1,662,422) | (45,154,203) | (2,308,016) | (45,796,421) | |
| Net increase | 859,904 | $ 23,806,274 | 37,180 | $ 2,202,758 | |
9 Risks and Uncertainties
Risks Associated with Foreign Investments
Foreign investments can be adversely affected by political,
economic and market developments abroad, including the imposition of economic and other sanctions by the United States or another country. There may be less publicly available information about foreign issuers because they may not be subject to
reporting practices, requirements or regulations comparable to those to which United States companies are subject. Foreign markets may be smaller, less liquid and more volatile than the major markets in the United States. Trading in foreign markets
typically involves higher expense than trading in the United States. The Funds may have difficulties enforcing their legal or contractual rights in a foreign country. Securities that trade or are denominated in currencies other than the U.S. dollar
may be adversely affected by fluctuations in currency exchange rates.
Emerging market securities often involve greater risks than
developed market securities. Investment markets within emerging market countries are typically smaller, less liquid, less developed and more volatile than those in more developed markets like the United States, and may be focused in certain economic
sectors. The information available about an emerging market issuer may be less reliable than for comparable issuers in more developed capital markets. Governmental actions can have a significant effect on the economic conditions in emerging market
countries. It may be more difficult to make a claim or obtain a judgment in the courts of these countries than it is in the United States. The possibility of fraud, negligence, undue influence being exerted by an issuer or refusal to recognize
ownership exists in some emerging markets. Disruptions due to work stoppages and trading improprieties in foreign securities markets have caused such markets to close. Emerging market securities are also subject to speculative trading, which
contributes to their volatility.
Concentration Risk
Global Energy Solutions concentrates its investments in the
sustainable energy solutions industry. This industry can be significantly affected by obsolescence of existing technology, short product lifecycles, falling prices and profits, competition from new market entrants and general economic conditions.
The industry can also be significantly affected by fluctuations in energy prices and supply and demand of alternative energy fuels, energy conservation, the success of exploration projects and tax and other government regulations and policies.
Companies in this industry could be adversely affected by commodity price volatility, imposition of import controls, increased competition, depletion of resources, technological developments and labor relations.
Global Water concentrates its investments in the water
industry. This industry can be significantly affected by economic trends or other conditions or developments, such as the availability of water, the level of rainfall and occurrence of other climatic events, changes in water consumption, new
technologies relating to the supply of water, and water conservation. The industry can also be significantly affected by environmental considerations, taxation, government regulation (including the increased cost of compliance), inflation, increases
in interest rates, price and supply fluctuations, increases in the cost of raw materials and other operating costs, technological advances, and competition from new market entrants.
Pandemic Risk
An outbreak of respiratory disease caused by a novel
coronavirus was first detected in China in late 2019 and subsequently spread internationally. This coronavirus has resulted in closing borders, enhanced health screenings, changes to healthcare service preparation and delivery, quarantines,
cancellations, disruptions to supply chains and customer activity, as well as general concern and uncertainty. Health crises caused by outbreaks, such as the coronavirus outbreak, may exacerbate other pre-existing political, social and economic
risks and disrupt normal market conditions and operations. The impact of this outbreak has negatively affected the worldwide economy, the economies of individual countries, individual companies, and the market in general, and may continue to do so
in significant and unforeseen ways, as may other epidemics and pandemics that may arise in the future. Any such impact could adversely affect the Funds' performance, or the performance of the securities in which the Funds invest.
40
Calvert
Global Energy Solutions Fund
Global Water Fund
September 30, 2021
Notes to Financial
Statements — continued
10 Change in Independent Registered Public
Accounting Firm
On July 30, 2021, KPMG LLP
(“KPMG”) informed the Audit Committee and Board of the Corporation that it was resigning as the independent registered public accounting firm to the Corporation, as upon Morgan Stanley’s acquisition of Eaton Vance Corp., the parent
company of CRM (the investment adviser to each series of the Corporation), KPMG would no longer be independent of the Corporation. The Audit Committee of the Board and the Board approved the selection of Deloitte & Touche LLP
(“Deloitte”) as the independent registered public accounting firm for the funds that are series of the Corporation (the “Funds”) for the fiscal year ending September 30, 2021 to be effective upon KPMG’s resignation and
Deloitte’s acceptance of the engagement which became effective July 30, 2021.
KPMG’s reports on the financial statements for the Funds
for the fiscal periods ended September 30, 2019 and September 30, 2020 contained no adverse opinion or disclaimer of opinion nor were they qualified or modified as to uncertainty, audit scope or accounting principles. During the fiscal periods ended
September 30, 2019 and September 30, 2020, and during the subsequent interim period through July 30, 2021: (i) there were no disagreements with KPMG on any matter of accounting principles or practices, financial statement disclosure or auditing
scope or procedure, which disagreements, if not resolved to the satisfaction of KPMG, would have caused KPMG to make reference to the subject matter of the disagreements in connection with its reports on the Funds’ financial statements for
such periods; and (ii) there were no “reportable events” of the kind described in Item 304(a)(1)(v) of Regulation S-K under the Securities Exchange Act of 1934, as amended.
During the fiscal periods ended September 30, 2019 and
September 30, 2020, and during the subsequent interim period through July 30, 2021: neither the Funds, nor anyone on their behalf, consulted with Deloitte on items which: (i) concerned the application of accounting principles to a specified
transaction, either completed or proposed, or the type of audit opinion that might be rendered on the Funds’ financial statements; or (ii) concerned the subject of a disagreement (as defined in paragraph (a)(1)(iv) of Item 304 of Regulation
S-K) or reportable events (as described in paragraph (a)(1)(v) of Item 304).
41
Calvert
Global Energy Solutions Fund
Global Water Fund
September 30, 2021
Report of
Independent Registered Public Accounting Firm
To the
Board of Directors of Calvert Impact Fund, Inc. and Shareholders of Calvert Global Energy Solutions Fund and Calvert Global Water Fund:
Opinion on the Financial Statements and Financial
Highlights
We have audited the accompanying statements of
assets and liabilities of Calvert Global Energy Solutions Fund and Calvert Global Water Fund (the "Funds") (two of the funds constituting Calvert Impact Fund, Inc.), including the schedules of investments, as of September 30, 2021, the related
statements of operations, changes in net assets, and the financial highlights for the year then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial
position of each of the Funds as of September 30, 2021, and the results of their operations and changes in their net assets for the year then ended, and the financial highlights for the year then ended in conformity with accounting principles
generally accepted in the United States of America. The statements of changes in net assets for the year ended September 30, 2020, and the financial highlights for the years ended September 30, 2020, 2019, 2018, and 2017 were audited by other
auditors whose report, dated November 20, 2020, expressed an unqualified opinion on those financial statements and those financial highlights.
Basis for Opinion
These financial statements and financial highlights are the
responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company
Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission
and the PCAOB.
We conducted our audits in accordance with
the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud.
The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not
for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks
of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts
and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial
statements and financial highlights. Our procedures included confirmation of securities owned as of September 30, 2021, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing
procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
November 22, 2021
Boston, Massachusetts
November 22, 2021
We have served as the auditor of one or
more Calvert investment companies since 2021.
42
Calvert
Global Energy Solutions Fund
Global Water Fund
September 30, 2021
Federal Tax
Information (Unaudited)
The
Form 1099-DIV you receive in February 2022 will show the tax status of all distributions paid to your account in calendar year 2021. Shareholders are advised to consult their own tax adviser with respect to the tax consequences of their investment
in the Funds. As required by the Internal Revenue Code and/or regulations, shareholders must be notified regarding the status of qualified dividend income for individuals, the dividends received deduction for corporations and the foreign tax
credit.
Qualified Dividend Income. For the fiscal year ended September 30, 2021, the Funds designate approximately the following amounts, or up to the maximum amount of such dividends allowable pursuant to the Internal Revenue Code, as qualified dividend
income eligible for the reduced tax rate of 15%:
| Global Energy Solutions | $ 2,472,129 |
| Global Water | $ 9,030,756 |
Dividends Received Deduction. Corporate shareholders are generally entitled to take the dividends received deduction on the portion of each Fund's dividend distribution that qualifies under tax law. For each Fund's fiscal 2021 ordinary income
dividends, the following qualifies for the corporate dividends received deduction:
| Global Energy Solutions | 18.76% |
| Global Water | 52.69% |
Foreign Tax Credit. For the fiscal year ended September 30, 2021, the Funds paid foreign taxes and recognized foreign source income as follows:
| Foreign Taxes | Foreign Source Income | ||
| Global Energy Solutions | $274,104 | $ 2,798,647 | |
| Global Water | $675,374 | $10,214,522 |
43
Calvert
Global Energy Solutions Fund
Global Water Fund
September 30, 2021
Liquidity Risk
Management Program
Each
Fund has implemented a written liquidity risk management program (Program) and related procedures to manage its liquidity in accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (Liquidity Rule). The Liquidity Rule defines
“liquidity risk” as the risk that a fund could not meet requests to redeem shares issued by the fund without significant dilution of the remaining investors’ interests in the fund. Each Fund’s Board of Trustees/Directors has
designated the investment adviser to serve as the administrator of the Program and the related procedures. The administrator has established a Liquidity Risk Management Oversight Committee (Committee) to perform the functions necessary to administer
the Program. As part of the Program, the administrator is responsible for identifying illiquid investments and categorizing the relative liquidity of each Fund’s investments in accordance with the Liquidity Rule. Under the Program, the
administrator assesses, manages, and periodically reviews each Fund’s liquidity risk, and is responsible for making certain reports to the Fund’s Board of Trustees/Directors and the Securities and Exchange Commission (SEC) regarding the
liquidity of the Fund’s investments, and to notify the Board of Trustees/Directors and the SEC of certain liquidity events specified in the Liquidity Rule. The liquidity of each Fund’s portfolio investments is determined based on a
number of factors including, but not limited to, relevant market, trading and investment-specific considerations under the Program.
At a meeting of each Fund’s Board of Trustees/Directors
on June 16, 2021, the Committee provided a written report to the Fund’s Board of Trustees/ Directors pertaining to the operation, adequacy, and effectiveness of implementation of the Program, as well as the operation of the highly liquid
investment minimum (if applicable) for the period January 1, 2020 through December 31, 2020 (Review Period). The Program operated effectively during the Review Period, supporting the administrator’s ability to assess, manage and monitor Fund
liquidity risk, including during periods of market volatility and net redemptions. During the Review Period, each Fund met redemption requests on a timely basis.
There can be no assurance that the Program will achieve its
objectives in the future. Please refer to each Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other principal risks to which an investment in the Fund may be subject.
44
Calvert
Global Energy Solutions Fund
Global Water Fund
September 30, 2021
Management and
Organization
Fund
Management. The Directors of Calvert Impact Fund, Inc. (the Corporation) are responsible for the overall management and supervision of the Corporation’s affairs. The Directors and officers of the Corporation
are listed below. Except as indicated, each individual has held the office shown or other offices in the same company for the last five years. Each Board member holds office until his or her successor is elected and qualified, or until his or her
earlier death, resignation, retirement, removal or disqualification. Under the terms of the Funds' current Board member retirement policy, an Independent Board member must retire at the end of the calendar year in which he or she turns 75. However,
if such retirement would cause the Funds to be out of compliance with Section 16 of the 1940 Act or any other regulations or guidance of the SEC, then such retirement and resignation will not become effective until such time as action has been taken
for the Funds to be in compliance upon a Board member's retirement. The “Independent Directors” consist of those Directors who are not “interested persons” of the Corporation, as that term is defined under the 1940 Act. The
business address of each Director and officer, with the exception of Ms. Walsh and Mr. Kirchner, is 1825 Connecticut Avenue NW, Suite 400, Washington, DC 20009. As used below, “CRM” refers to Calvert Research and Management. Each
Director oversees 39 funds in the Calvert fund complex. Each officer serves as an officer of certain other Calvert funds.
| Name and Year of Birth | Corporation
Position(s) |
Position
Start Date |
Principal
Occupation(s) and Other Directorships During Past Five Years and Other Relevant Experience |
| Interested Director | |||
| John
H. Streur(1) 1960 |
Director
and President |
2015 | President
and Chief Executive Officer of Calvert Research and Management (since December 31, 2016). President and Chief Executive Officer of Calvert Investments, Inc. (January 2015 - December 2016); Chief Executive Officer of Calvert Investment Distributors, Inc. (August 2015 - December 2016); Chief Compliance Officer of Calvert Investment Management, Inc. (August 2015 - April 2016); President and Director, Portfolio 21 Investments, Inc. (through October 2014); President, Chief Executive Officer and Director, Managers Investment Group LLC (through January 2012); President and Director, The Managers Funds and Managers AMG Funds (through January 2012). Other Directorships in the Last Five Years. Portfolio 21 Investments, Inc. (asset management) (through October 2014); Managers Investment Group LLC (asset management) (through January 2012); The Managers Funds (asset management) (through January 2012); Managers AMG Funds (asset management) (through January 2012); Calvert Impact Capital, Inc. |
| Independent Directors | |||
| Richard
L. Baird, Jr. 1948 |
Director | 2005 | Regional Disaster
Recovery Lead, American Red Cross of Greater Pennsylvania (since 2017). Volunteer, American Red Cross (since 2015). Former President and CEO of Adagio Health Inc. (retired in 2014) in Pittsburgh, PA. Other Directorships in the Last Five Years. None. |
| Alice
Gresham Bullock 1950 |
Chair
and Director |
2016 | Professor Emerita
at Howard University School of Law. Dean Emerita of Howard University School of Law and Deputy Director of the Association of American Law Schools (1992-1994). Other Directorships in the Last Five Years. None. |
| Cari
M. Dominguez 1949 |
Director | 2016 | Former
Chair of the U.S. Equal Employment Opportunity Commission. Other Directorships in the Last Five Years. Manpower, Inc. (employment agency); Triple S Management Corporation (managed care); National Association of Corporate Directors. |
| John
G. Guffey, Jr. 1948 |
Director | 2005 | President of
Aurora Press Inc., a privately held publisher of trade paperbacks (since January 1997). Other Directorships in the Last Five Years. Calvert Impact Capital, Inc. (through December 31, 2018); Calvert Ventures, LLC. |
| Miles
D. Harper, III 1962 |
Director | 2000 | Partner,
Carr Riggs & Ingram (public accounting firm) since October 2014. Partner, Gainer Donnelly & Desroches (public accounting firm) (now Carr Riggs & Ingram) (November 1999 - September 2014). Other Directorships in the Last Five Years. Bridgeway Funds (9) (asset management). |
| Joy
V. Jones 1950 |
Director | 2000 | Attorney.
Other Directorships in the Last Five Years. Conduit Street Restaurants SUD 2 Limited; Palm Management Restaurant Corporation. |
45
Calvert
Global Energy Solutions Fund
Global Water Fund
September 30, 2021
Management and
Organization — continued
| Name and Year of Birth | Corporation
Position(s) |
Position
Start Date |
Principal
Occupation(s) and Other Directorships During Past Five Years and Other Relevant Experience |
| Independent Directors (continued) | |||
| Anthony
A. Williams 1951 |
Director | 2016 | CEO
and Executive Director of the Federal City Council (July 2012 to present); Senior Adviser and Independent Consultant for King and Spalding LLP (September 2015 to present); Executive Director of Global Government Practice at the Corporate Executive Board (January 2010 to January 2012). Other Directorships in the Last Five Years. Freddie Mac; Evoq Properties/Meruelo Maddux Properties, Inc. (real estate management); Weston Solutions, Inc. (environmental services); Bipartisan Policy Center’s Debt Reduction Task Force; Chesapeake Bay Foundation; Catholic University of America; Urban Institute (research organization); The Howard Hughes Corporation (real estate development). |
| Name and Year of Birth | Corporation
Position(s) |
Position
Start Date |
Principal
Occupation(s) During Past Five Years |
| Principal Officers who are not Directors | |||
| Hope
L. Brown 1973 |
Chief
Compliance Officer |
2014 | Chief
Compliance Officer of 39 registered investment companies advised by CRM (since 2014). Vice President and Chief Compliance Officer, Wilmington Funds (2012-2014). |
| Deidre
E. Walsh(2) 1971 |
Secretary,
Vice President and Chief Legal Officer |
2021 | Vice
President of CRM and officer of 39 registered investment companies advised by CRM (since 2021). Also Vice President of Eaton Vance and certain of its affiliates and officer of 138 registered investment companies advised or administered by Eaton Vance. |
| James
F. Kirchner(2) 1967 |
Treasurer | 2016 | Vice
President of CRM and officer of 39 registered investment companies advised by CRM (since 2016). Also Vice President of Eaton Vance and certain of its affiliates and officer of 138 registered investment companies advised or administered by Eaton Vance. |
| (1) Mr. Streur is an interested person of the Funds because of his positions with the Funds' adviser and certain affiliates. | |||
| (2) The business address for Ms. Walsh and Mr. Kirchner is Two International Place, Boston, MA 02110. | |||
The SAI for the Funds includes additional information about the
Directors and officers of the Funds and can be obtained without charge on Calvert’s website at www.calvert.com or by calling 1-800-368-2745.
46
Calvert Funds
| Privacy Notice | April 2021 |
| FACTS | WHAT
DOES EATON VANCE DO WITH YOUR PERSONAL INFORMATION? |
| Why? | Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do. |
| What? | The
types of personal information we collect and share depend on the product or service you have with us. This information can include:■ Social Security number and income ■ investment experience and risk tolerance ■ checking account number and wire transfer instructions |
| How? | All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons Eaton Vance chooses to share; and whether you can limit this sharing. |
| Reasons
we can share your personal information |
Does
Eaton Vance share? |
Can
you limit this sharing? |
| For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus | Yes | No |
| For our marketing purposes — to offer our products and services to you | Yes | No |
| For joint marketing with other financial companies | No | We don’t share |
| For our investment management affiliates’ everyday business purposes — information about your transactions, experiences, and creditworthiness | Yes | Yes |
| For our affiliates’ everyday business purposes — information about your transactions and experiences | Yes | No |
| For our affiliates’ everyday business purposes — information about your creditworthiness | No | We don’t share |
| For our investment management affiliates to market to you | Yes | Yes |
| For our affiliates to market to you | No | We don’t share |
| For nonaffiliates to market to you | No | We don’t share |
| To
limit our sharing |
Call toll-free 1-800-368-2745 or email: CRMPrivacy@calvert.comPlease note:If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing. |
| Questions? | Call toll-free 1-800-368-2745 or email: CRMPrivacy@calvert.com |
47
Calvert Funds
| Privacy Notice — continued | April 2021 |
Page 2
| Who we are | |
| Who is providing this notice? | Eaton Vance Management, Eaton Vance Distributors, Inc., Eaton Vance Trust Company, Eaton Vance Management (International) Limited, Eaton Vance Advisers International Ltd., Eaton Vance Global Advisors Limited, Eaton Vance Management’s Real Estate Investment Group, Boston Management and Research, Calvert Research and Management, Eaton Vance and Calvert Fund Families and our investment advisory affiliates (“Eaton Vance”) (see Investment Management Affiliates definition below) |
| What we do | |
| How
does Eaton Vance protect my personal information? |
To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information. |
| How
does Eaton Vance collect my personal information? |
We
collect your personal information, for example, when you■ open an account or make deposits or withdrawals from your
account ■ buy securities from us or make a wire transfer ■ give us your contact informationWe also collect your personal information from others, such as credit bureaus, affiliates, or other companies. |
| Why can’t I limit all sharing? | Federal
law gives you the right to limit only■ sharing for affiliates’ everyday business purposes — information
about your creditworthiness ■ affiliates from using your information to market to you ■ sharing for nonaffiliates to market to youState laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law. |
| Definitions | |
| Investment
Management Affiliates |
Eaton Vance Investment Management Affiliates include registered investment advisers, registered broker- dealers, and registered and unregistered funds. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co. |
| Affiliates | Companies related by common ownership or control. They can be financial and nonfinancial companies.■ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co. |
| Nonaffiliates | Companies not related by common ownership or control. They can be financial and nonfinancial companies.■ Eaton Vance does not share with nonaffiliates so they can market to you. |
| Joint marketing | A formal agreement between nonaffiliated financial companies that together market financial products or services to you.■ Eaton Vance doesn’t jointly market. |
| Other important information | |
| Vermont: Except as permitted by law, we will not share personal information we collect about Vermont residents with Nonaffiliates unless you provide us with your written consent to share such information.California: Except as permitted by law, we will not share personal information we collect about California residents with Nonaffiliates and we will limit sharing such personal information with our Affiliates to comply with California privacy laws that apply to us. | |
48
Calvert Funds
IMPORTANT NOTICES
Delivery of Shareholder Documents. The Securities and Exchange Commission (SEC) permits funds to deliver only one copy of shareholder documents, including prospectuses, proxy statements and shareholder reports, to fund investors with
multiple accounts at the same residential or post office box address. This practice is often called “householding” and it helps eliminate duplicate mailings to shareholders. Calvert funds, or your financial intermediary, may household the mailing of your documents indefinitely unless you instruct Calvert funds, or your financial intermediary, otherwise. If you would prefer that your Calvert fund documents not be householded, please contact Calvert funds at 1-800-368-2745, or contact your financial intermediary. Your instructions that householding not
apply to delivery of your Calvert fund documents will typically be effective within 30 days of receipt by Calvert funds or your financial intermediary. Separate statements will be generated for each separate account and will be householded as
described above.
Portfolio Holdings. Each Calvert fund files a schedule of portfolio holdings on Part F to Form N-PORT with the SEC. Certain information filed on Form N-PORT may be viewed on the Calvert website at www.calvert.com, by calling
Calvert at 1-800-368-2745 or in the EDGAR database on the SEC’s website at www.sec.gov.
Proxy Voting. The Proxy Voting Guidelines that each Calvert fund uses to determine how to vote proxies relating to portfolio securities is provided as an Appendix to the fund’s Statement of Additional Information.
The Statement of Additional Information can be obtained free of charge by calling the Calvert funds at 1-800-368-2745, by visiting the Calvert funds’ website at www.calvert.com or visiting the SEC’s website at www.sec.gov. Information
regarding how a Calvert fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available by calling Calvert funds, by visiting the Calvert funds’ website at www.calvert.com or by visiting
the SEC’s website at www.sec.gov.
49
* FINRA
BrokerCheck. Investors may check the background of their Investment Professional by contacting the Financial Industry Regulatory Authority (FINRA). FINRA BrokerCheck is a free tool to help investors check the professional background of
current and former FINRA-registered securities firms and brokers. FINRA BrokerCheck is available by calling 1-800-289-9999 and at www.FINRA.org. The FINRA BrokerCheck brochure describing this program is available to investors at www.FINRA.org.
Calvert
Green Bond Fund
Annual Report
September 30, 2021
Commodity Futures Trading Commission Registration. The Commodity Futures Trading Commission (“CFTC”) has adopted regulations that subject registered investment companies and advisers to regulation by the CFTC if a fund invests more than a
prescribed level of its assets in certain CFTC-regulated instruments (including futures, certain options and swap agreements) or markets itself as providing investment exposure to such instruments. The adviser has claimed an exclusion from the
definition of “commodity pool operator” under the Commodity Exchange Act with respect to its management of the Fund and the other funds it manages. Accordingly, neither the Fund nor the adviser is subject to CFTC regulation.
Fund shares are not insured by the FDIC and are not deposits or
other obligations of, or guaranteed by, any depository institution. Shares are subject to investment risks, including possible loss of principal invested.
This report must be preceded or accompanied by a current
summary prospectus or prospectus. Before investing, investors should consider carefully the investment objective, risks, and charges and expenses of a mutual fund. This and other important information is contained in the summary prospectus and
prospectus, which can be obtained from a financial intermediary. Prospective investors should read the prospectus carefully before investing. For further information, please call 1-800-368-2745.
Choose Planet-friendly E-delivery!
Sign up now for on-line statements, prospectuses, and fund
reports. In less than five minutes you can help reduce paper mail and lower fund costs.
Just go to
www.calvert.com. If you already have an online account with the Calvert funds, click on Login to access your Account and select the documents you would like to receive via e-mail.
If you’re new to online account access, click on Login,
then Register to create your user name and password. Once you’re in, click on the E-delivery sign-up on the Account Portfolio page and follow the quick, easy steps.
Note: If your shares are not
held directly with the Calvert funds but through a brokerage firm, you must contact your broker for electronic delivery options available through their firm.
Annual Report September 30, 2021
Calvert
Green Bond Fund
Calvert
Green Bond Fund
September 30, 2021
Management's Discussion of Fund Performance†
Economic and Market Conditions
After the U.S. Federal Reserve (the Fed) met in late September
2021, Fed Chair Jerome Powell noted that “The path of the economy continues to depend on the course of the [COVID-19] virus, and risks to the economic outlook remain.” For fixed-income investors, this reflected the dominant investment
theme for the 12-month period ended September 30, 2021.
Throughout the period, performance of fixed-income asset
classes ebbed and flowed as the virus advanced and retreated, with a second wave of COVID-19 washing over the U.S. and global economies in the winter of 2020-2021 and a third wave known as the Delta variant spreading around the world in the summer
of 2021.
For the period as a whole, however, U.S.
fixed-income investors appeared to focus on the reopening of the economy and its recovery from a near-shutdown in the early days of the pandemic. The asset classes that fared best during the period were those that stood to benefit from a U.S. and
global economic revival. So-called “safe-haven” assets, in contrast, fared poorly as investors appeared to become more comfortable taking on increased risk during the period.
As a result, U.S. Treasurys were one of the worst-performing
fixed-income asset classes during the period, with the Bloomberg U.S. Treasury Index returning (3.30)% for the period. The Bloomberg U.S. Aggregate Bond Index, a broad measure of the U.S. fixed-income market, was also dragged down by its Treasury
component, and returned (0.90)% for the period.
Investment-grade corporate bonds fared better. The Bloomberg
U.S. Corporate Bond Index returned 1.74% for the period, as factories and businesses reopened and consumers — a key driver of the U.S. economy — rushed to spend the money they had saved while confined at home earlier in the
pandemic.
High yield bonds were a standout asset class
during the period. Several industries prominent within the high yield space — including airlines, restaurants, retail, and travel & leisure — were among the hardest-hit businesses early in the pandemic and the biggest beneficiaries
of the subsequent economic recovery. Reflecting investors’ increasing confidence in the recovery, as well as their search for yield in a historically low-yield environment, the Bloomberg U.S. Corporate High Yield Index returned 11.28% for the
one-year period.
Fund Performance
For the 12-month period ended September 30, 2021, Calvert Green
Bond Fund (the Fund) returned 0.17% for Class A shares at net asset value (NAV), outperforming its benchmark, the ICE BofA Green Bond Index - Hedged USD (the Index), which returned (0.25)%.
The Fund’s sector allocation was strong during the period
and contributed most to returns relative to the Index. Out-of-Index allocations to high yield corporate securities and asset-backed securities were particularly beneficial. Underweight allocations to global sovereigns and government-related
securities also enhanced relative performance. The Fund’s yield-curve positioning further contributed to returns relative to the Index during the period.
The Fund’s shorter-than-Index U.S. dollar (USD) duration
detracted from performance relative to the Index during the period, while its use of derivatives had a positive impact on absolute returns.
Toward period-end, the U.S. Federal Reserve indicated it was
poised to begin a monetary tightening cycle that the Fund believed was likely to spark volatility and move interest rates higher, particularly at the front end of the yield curve. Under these circumstances, the Fund maintained an underweight
exposure to interest rate durations at period end.
See Endnotes and Additional Disclosures in this report.
Past performance is no guarantee of future results. Returns are historical and
are calculated by determining the percentage change in net asset value (NAV) or offering price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. Performance for periods less than or equal to one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return.
For performance as of the most recent month-end, please refer to www.calvert.com.
2
Calvert
Green Bond Fund
September 30, 2021
Performance
Portfolio Managers Vishal
Khanduja, CFA and Brian S. Ellis, CFA, each of Calvert Research and Management
| % Average Annual Total Returns1,2 | Class
Inception Date |
Performance
Inception Date |
One Year | Five Years | Since
Inception |
| Class A at NAV | 10/31/2013 | 10/31/2013 | 0.17% | 2.90% | 3.02% |
| Class A with 3.75% Maximum Sales Charge | — | — | (3.60) | 2.11 | 2.53 |
| Class I at NAV | 10/31/2013 | 10/31/2013 | 0.42 | 3.22 | 3.36 |
| Class R6 at NAV | 02/01/2019 | 10/31/2013 | 0.47 | 3.26 | 3.39 |
|
| |||||
| ICE BofA Green Bond Index - Hedged USD | — | — | (0.25)% | 3.56% | 3.86% |
| % Total Annual Operating Expense Ratios3 | Class A | Class I | Class R6 |
| Gross | 0.79% | 0.54% | 0.49% |
| Net | 0.73 | 0.48 | 0.43 |
Growth of $10,000
This graph shows the change in value of a hypothetical
investment of $10,000 in Class A of the Fund for the period indicated. For comparison, the same investment is shown in the indicated index.
| Growth of Investment2 | Amount Invested | Period Beginning | At NAV | With Maximum Sales Charge |
| Class I | $250,000 | 10/31/2013 | $324,854 | N.A. |
| Class R6 | $1,000,000 | 10/31/2013 | $1,302,072 | N.A. |
See Endnotes and Additional Disclosures in this report.
Past performance is no guarantee of future results. Returns are historical and
are calculated by determining the percentage change in net asset value (NAV) or offering price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. Performance for periods less than or equal to one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return.
For performance as of the most recent month-end, please refer to www.calvert.com.
3
Calvert
Green Bond Fund
September 30, 2021
Fund Profile
See Endnotes and Additional Disclosures in this report.
4
Calvert
Green Bond Fund
September 30, 2021
Fund Expenses
Example
As a Fund shareholder, you incur two types of costs: (1)
transaction costs, including sales charges (loads) on purchases and redemption fees (if applicable); and (2) ongoing costs, including management fees; distribution and/or service fees; and other Fund expenses. This Example is intended to help you
understand your ongoing costs (in dollars) of Fund investing and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for
the entire period (April 1, 2021 to September 30, 2021).
Actual Expenses
The first section of the table below provides information about
actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second section of the table below provides information
about hypothetical account values and hypothetical expenses based on the actual Fund expense ratio and an assumed rate of return of 5% per year (before expenses), which is not the actual Fund return. The hypothetical account values and expenses may
not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with
the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to
highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption fees (if applicable). Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help
you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would be higher.
| Beginning
Account Value (4/1/21) |
Ending
Account Value (9/30/21) |
Expenses
Paid During Period* (4/1/21 – 9/30/21) |
Annualized
Expense Ratio | |
| Actual | ||||
| Class A | $1,000.00 | $1,008.80 | $3.68 ** | 0.73% |
| Class I | $1,000.00 | $1,010.00 | $2.42 ** | 0.48% |
| Class R6 | $1,000.00 | $1,010.30 | $2.17 ** | 0.43% |
| Hypothetical | ||||
| (5% return per year before expenses) | ||||
| Class A | $1,000.00 | $1,021.41 | $3.70 ** | 0.73% |
| Class I | $1,000.00 | $1,022.66 | $2.43 ** | 0.48% |
| Class R6 | $1,000.00 | $1,022.91 | $2.18 ** | 0.43% |
| * | Expenses are equal to the Fund's annualized expense ratio for the indicated Class, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period). The Example assumes that the $1,000 was invested at the net asset value per share determined at the close of business on March 31, 2021. |
| ** | Absent a waiver and/or reimbursement of expenses by an affiliate, expenses would be higher. |
6
Calvert
Green Bond Fund
September 30, 2021
Schedule of
Investments
7
See Notes to Financial Statements.
Calvert
Green Bond Fund
September 30, 2021
Schedule of
Investments — continued
8
See Notes to Financial Statements.
Calvert
Green Bond Fund
September 30, 2021
Schedule of
Investments — continued
9
See Notes to Financial Statements.
Calvert
Green Bond Fund
September 30, 2021
Schedule of
Investments — continued
10
See Notes to Financial Statements.
Calvert
Green Bond Fund
September 30, 2021
Schedule of
Investments — continued
11
See Notes to Financial Statements.
Calvert
Green Bond Fund
September 30, 2021
Schedule of
Investments — continued
Forward Foreign Currency Exchange Contracts
| Currency Purchased | Currency Sold | Counterparty | Settlement
Date |
Unrealized
Appreciation |
Unrealized
(Depreciation) | ||
| USD | 2,639,490 | AUD | 3,609,626 | State Street Bank and Trust Company | 11/30/21 | $ 29,321 | $ — |
| USD | 13,845,570 | CAD | 17,471,087 | State Street Bank and Trust Company | 11/30/21 | 53,059 | — |
| USD | 183,739,832 | EUR | 155,534,597 | State Street Bank and Trust Company | 11/30/21 | 3,382,210 | — |
| USD | 5,198,009 | EUR | 4,380,298 | State Street Bank and Trust Company | 11/30/21 | 118,624 | — |
| USD | 7,143,102 | SEK | 61,714,020 | State Street Bank and Trust Company | 11/30/21 | 90,852 | — |
| $3,674,066 | $ — | ||||||
Futures Contracts
| Description | Number
of Contracts |
Position | Expiration
Date |
Notional
Amount |
Value/
Unrealized Appreciation (Depreciation) |
| Interest Rate Futures | |||||
| U.S. 2-Year Treasury Note | 13 | Long | 12/31/21 | $ 2,860,711 | $ (1,647) |
| U.S. 5-Year Treasury Note | 197 | Long | 12/31/21 | 24,180,211 | (124,307) |
| U.S. 10-Year Treasury Note | 160 | Long | 12/21/21 | 21,057,500 | (225,549) |
| U.S. Long Treasury Bond | (143) | Short | 12/21/21 | (22,768,281) | 452,193 |
| U.S. Ultra 10-Year Treasury Note | (654) | Short | 12/21/21 | (94,993,500) | 1,415,159 |
| U.S. Ultra-Long Treasury Bond | (71) | Short | 12/21/21 | (13,565,438) | 345,989 |
| $1,861,838 |
12
See Notes to Financial Statements.
Calvert
Green Bond Fund
September 30, 2021
Schedule of
Investments — continued
Restricted
Securities
| Description | Acquisition Date | Cost |
| Calvert Impact Capital, Inc., Community Investment Notes, 1.50%, 12/15/23 | 12/14/20 | $1,700,000 |
| Abbreviations: | |
| LIBOR | – London Interbank Offered Rate |
| Currency Abbreviations: | |
| AUD | – Australian Dollar |
| CAD | – Canadian Dollar |
| EUR | – Euro |
| SEK | – Swedish Krona |
| USD | – United States Dollar |
13
See Notes to Financial Statements.
Calvert
Green Bond Fund
September 30, 2021
Statement of Assets
and Liabilities
| September 30, 2021 | |
| Assets | |
| Investments
in securities of unaffiliated issuers, at value (identified cost $918,728,803) - including $12,338,544 of securities on loan |
$ 930,815,901 |
| Investments in securities of affiliated issuers, at value (identified cost $38,006,404) | 38,033,631 |
| Receivable for open forward foreign currency exchange contracts | 3,674,066 |
| Cash | 40,489 |
| Deposits at broker for futures contracts | 2,155,313 |
| Cash denominated in foreign currency, at value (cost $23,475) | 23,602 |
| Receivable for capital shares sold | 3,410,143 |
| Interest receivable | 4,463,496 |
| Dividends and interest receivable - affiliated | 23,640 |
| Securities lending income receivable | 1,129 |
| Receivable from affiliate | 25,850 |
| Directors' deferred compensation plan | 103,402 |
| Total assets | $982,770,662 |
| Liabilities | |
| Payable for variation margin on open futures contracts | $ 79,243 |
| Payable for investments purchased | 1,079,881 |
| Payable for when-issued securities | 5,463,000 |
| Payable for capital shares redeemed | 680,905 |
| Distributions payable | 23,412 |
| Deposits for securities loaned | 12,633,849 |
| Payable to affiliates: | |
| Investment advisory fee | 196,822 |
| Administrative fee | 94,474 |
| Distribution and service fees | 18,326 |
| Sub-transfer agency fee | 5,094 |
| Directors' deferred compensation plan | 103,402 |
| Accrued expenses | 281,505 |
| Total liabilities | $ 20,659,913 |
| Net Assets | $962,110,749 |
| Sources of Net Assets | |
| Paid-in capital | $ 946,251,523 |
| Distributable earnings | 15,859,226 |
| Total | $962,110,749 |
| Class A Shares | |
| Net Assets | $ 89,163,680 |
| Shares Outstanding | 5,520,281 |
| Net
Asset Value and Redemption Price Per Share (net assets ÷ shares of beneficial interest outstanding) |
$ 16.15 |
| Maximum
Offering Price Per Share (100 ÷ 96.25 of net asset value per share) |
$ 16.78 |
| Class I Shares | |
| Net Assets | $ 863,670,012 |
| Shares Outstanding | 53,399,038 |
| Net
Asset Value, Offering Price and Redemption Price Per Share (net assets ÷ shares of beneficial interest outstanding) |
$ 16.17 |
14
See Notes to Financial Statements.
Calvert
Green Bond Fund
September 30, 2021
Statement of Assets
and Liabilities — continued
| September 30, 2021 | |
| Class R6 Shares | |
| Net Assets | $9,277,057 |
| Shares Outstanding | 573,274 |
| Net
Asset Value, Offering Price and Redemption Price Per Share (net assets ÷ shares of beneficial interest outstanding) |
$ 16.18 |
On sales of $50,000 or more, the offering price of Class A
shares is reduced.
15
See Notes to Financial Statements.
Calvert
Green Bond Fund
September 30, 2021
Statement of
Operations
| Year Ended | |
| September 30, 2021 | |
| Investment Income | |
| Dividend income (net of foreign taxes withheld of $2,078) | $ 584,079 |
| Dividend income - affiliated issuers | 31,651 |
| Interest and other income (net of foreign taxes withheld of $1,899) | 16,015,111 |
| Interest income - affiliated issuers | 42,700 |
| Securities lending income, net | 7,421 |
| Total investment income | $ 16,680,962 |
| Expenses | |
| Investment advisory fee | $ 2,075,824 |
| Administrative fee | 996,395 |
| Distribution and service fees: | |
| Class A | 209,597 |
| Directors' fees and expenses | 38,411 |
| Custodian fees | 29,937 |
| Transfer agency fees and expenses | 642,369 |
| Accounting fees | 188,044 |
| Professional fees | 47,670 |
| Registration fees | 151,650 |
| Reports to shareholders | 57,861 |
| Miscellaneous | 38,281 |
| Total expenses | $ 4,476,039 |
| Waiver and/or reimbursement of expenses by affiliate | $ (266,893) |
| Net expenses | $ 4,209,146 |
| Net investment income | $ 12,471,816 |
| Realized and Unrealized Gain (Loss) | |
| Net realized gain (loss): | |
| Investment securities | $ 2,284,632 |
| Investment securities - affiliated issuers | (4,139) |
| Futures contracts | 1,887,986 |
| Foreign currency transactions | 30,979 |
| Forward foreign currency exchange contracts | 2,124,608 |
| Net realized gain | $ 6,324,066 |
| Change in unrealized appreciation (depreciation): | |
| Investment securities | $ (21,592,004) |
| Investment securities - affiliated issuers | (37,969) |
| Futures contracts | 1,900,948 |
| Foreign currency | (38,305) |
| Forward foreign currency exchange contracts | 2,295,188 |
| Net change in unrealized appreciation (depreciation) | $(17,472,142) |
| Net realized and unrealized loss | $(11,148,076) |
| Net increase in net assets from operations | $ 1,323,740 |
16
See Notes to Financial Statements.
Calvert
Green Bond Fund
September 30, 2021
Statements of
Changes in Net Assets
| Year Ended September 30, | ||
| 2021 | 2020 | |
| Increase (Decrease) in Net Assets | ||
| From operations: | ||
| Net investment income | $ 12,471,816 | $ 9,208,527 |
| Net realized gain (loss) | 6,324,066 | (6,172,077) |
| Net change in unrealized appreciation (depreciation) | (17,472,142) | 22,198,727 |
| Net increase in net assets from operations | $ 1,323,740 | $ 25,235,177 |
| Distributions to shareholders: | ||
| Class A | $ (1,216,394) | $ (1,392,425) |
| Class I | (12,377,377) | (9,054,002) |
| Class R6 | (106,700) | (22,346) |
| Total distributions to shareholders | $ (13,700,471) | $ (10,468,773) |
| Capital share transactions: | ||
| Class A | $ 12,296,351 | $ 17,390,289 |
| Class I | 342,690,445 | 233,793,006 |
| Class R6 | 6,153,046 | 2,598,426 |
| Net increase in net assets from capital share transactions | $361,139,842 | $253,781,721 |
| Net increase in net assets | $348,763,111 | $268,548,125 |
| Net Assets | ||
| At beginning of year | $ 613,347,638 | $ 344,799,513 |
| At end of year | $962,110,749 | $613,347,638 |
17
See Notes to Financial Statements.
Calvert
Green Bond Fund
September 30, 2021
Financial
Highlights
| Class A | |||||
| Year Ended September 30, | |||||
| 2021 | 2020 | 2019 | 2018 | 2017 | |
| Net asset value — Beginning of year | $ 16.36 | $ 15.87 | $ 14.82 | $ 15.32 | $ 15.64 |
| Income (Loss) From Operations | |||||
| Net investment income(1) | $ 0.21 | $ 0.28 | $ 0.34 | $ 0.27 | $ 0.26 |
| Net realized and unrealized gain (loss) | (0.18) | 0.55 | 1.05 | (0.39) | (0.16) |
| Total income (loss) from operations | $ 0.03 | $ 0.83 | $ 1.39 | $ (0.12) | $ 0.10 |
| Less Distributions | |||||
| From net investment income | $ (0.24) | $ (0.32) | $ (0.34) | $ (0.27) | $ (0.26) |
| From net realized gain | — | (0.02) | — | (0.11) | (0.16) |
| Total distributions | $ (0.24) | $ (0.34) | $ (0.34) | $ (0.38) | $ (0.42) |
| Net asset value — End of year | $ 16.15 | $ 16.36 | $ 15.87 | $ 14.82 | $ 15.32 |
| Total Return(2) | 0.17% | 5.27% | 9.53% | (0.80)% | 0.71% |
| Ratios/Supplemental Data | |||||
| Net assets, end of year (000’s omitted) | $89,164 | $77,991 | $58,422 | $42,611 | $38,011 |
| Ratios (as a percentage of average daily net assets):(3) | |||||
| Total expenses | 0.76% | 0.79% | 0.86% | 0.99% | 1.04% |
| Net expenses | 0.73% | 0.73% | 0.77% | 0.85% | 0.88% |
| Net investment income | 1.28% | 1.77% | 2.21% | 1.83% | 1.71% |
| Portfolio Turnover | 23% | 26% | 21% | 16% | 43% |
| (1) | Computed using average shares outstanding. |
| (2) | Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested and do not reflect the effect of sales charges, if any. |
| (3) | Total expenses do not reflect amounts reimbursed and/or waived by the adviser and certain of its affiliates, if applicable. Net expenses are net of all reductions and represent the net expenses paid by the Fund. |
18
See Notes to Financial Statements.
Calvert
Green Bond Fund
September 30, 2021
Financial
Highlights — continued
| Class I | |||||
| Year Ended September 30, | |||||
| 2021 | 2020 | 2019 | 2018 | 2017 | |
| Net asset value — Beginning of year | $ 16.38 | $ 15.89 | $ 14.83 | $ 15.32 | $ 15.63 |
| Income (Loss) From Operations | |||||
| Net investment income(1) | $ 0.25 | $ 0.32 | $ 0.38 | $ 0.33 | $ 0.32 |
| Net realized and unrealized gain (loss) | (0.18) | 0.55 | 1.06 | (0.40) | (0.15) |
| Total income (loss) from operations | $ 0.07 | $ 0.87 | $ 1.44 | $ (0.07) | $ 0.17 |
| Less Distributions | |||||
| From net investment income | $ (0.28) | $ (0.36) | $ (0.38) | $ (0.31) | $ (0.32) |
| From net realized gain | — | (0.02) | — | (0.11) | (0.16) |
| Total distributions | $ (0.28) | $ (0.38) | $ (0.38) | $ (0.42) | $ (0.48) |
| Net asset value — End of year | $ 16.17 | $ 16.38 | $ 15.89 | $ 14.83 | $ 15.32 |
| Total Return(2) | 0.42% | 5.53% | 9.84% | (0.48)% | 1.15% |
| Ratios/Supplemental Data | |||||
| Net assets, end of year (000’s omitted) | $863,670 | $532,149 | $285,796 | $113,097 | $23,641 |
| Ratios (as a percentage of average daily net assets):(3) | |||||
| Total expenses | 0.51% | 0.54% | 0.61% | 0.74% | 0.68% |
| Net expenses | 0.48% | 0.48% | 0.48% | 0.50% | 0.50% |
| Net investment income | 1.52% | 2.00% | 2.47% | 2.24% | 2.09% |
| Portfolio Turnover | 23% | 26% | 21% | 16% | 43% |
| (1) | Computed using average shares outstanding. |
| (2) | Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested and do not reflect the effect of sales charges, if any. |
| (3) | Total expenses do not reflect amounts reimbursed and/or waived by the adviser and certain of its affiliates, if applicable. Net expenses are net of all reductions and represent the net expenses paid by the Fund. |
19
See Notes to Financial Statements.
Calvert
Green Bond Fund
September 30, 2021
Financial
Highlights — continued
| Class R6 | |||
| Year Ended September 30, | Period
Ended September 30, | ||
| 2021 | 2020 | 2019 (1) | |
| Net asset value — Beginning of period | $ 16.39 | $ 15.90 | $ 15.01 |
| Income (Loss) From Operations | |||
| Net investment income(2) | $ 0.26 | $ 0.32 | $ 0.26 |
| Net realized and unrealized gain (loss) | (0.18) | 0.55 | 0.89 |
| Total income from operations | $ 0.08 | $ 0.87 | $ 1.15 |
| Less Distributions | |||
| From net investment income | $ (0.29) | $ (0.36) | $ (0.26) |
| From net realized gain | — | (0.02) | — |
| Total distributions | $ (0.29) | $ (0.38) | $ (0.26) |
| Net asset value — End of period | $16.18 | $16.39 | $15.90 |
| Total Return(3) | 0.47% | 5.58% | 7.68% (4) |
| Ratios/Supplemental Data | |||
| Net assets, end of period (000’s omitted) | $ 9,277 | $ 3,208 | $ 581 |
| Ratios (as a percentage of average daily net assets):(5) | |||
| Total expenses | 0.46% | 0.49% | 0.54% (6) |
| Net expenses | 0.43% | 0.43% | 0.43% (6) |
| Net investment income | 1.56% | 1.99% | 2.49% (6) |
| Portfolio Turnover | 23% | 26% | 21% (7) |
| (1) | For the period from the commencement of operations, February 1, 2019, to September 30, 2019. |
| (2) | Computed using average shares outstanding. |
| (3) | Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested and do not reflect the effect of sales charges, if any. |
| (4) | Not annualized. |
| (5) | Total expenses do not reflect amounts reimbursed and/or waived by the adviser and certain of its affiliates, if applicable. Net expenses are net of all reductions and represent the net expenses paid by the Fund. |
| (6) | Annualized. |
| (7) | For the year ended September 30, 2019. |
20
See Notes to Financial Statements.
Calvert
Green Bond Fund
September 30, 2021
Notes to Financial
Statements
1 Significant Accounting Policies
Calvert Green Bond Fund (the Fund) is a diversified series of
Calvert Impact Fund, Inc. (the Corporation). The Corporation is a Maryland corporation registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company. The investment objective of the Fund
is to seek to maximize income, to the extent consistent with preservation of capital, primarily through investment in bonds. The Fund invests primarily in “green” investments which include those issued by companies that develop or
provide products or services that seek to provide environmental solutions and/or that support environmental projects, among others.
The Fund offers three classes of shares. Class A shares are
generally sold subject to a sales charge imposed at time of purchase. A contingent deferred sales charge of 0.80% may apply to certain redemptions of Class A shares for accounts for which no sales charge was paid, if redeemed within 12 months of
purchase. Class I and Class R6 shares are sold at net asset value, are not subject to a sales charge and are sold only to certain eligible investors. Each class represents a pro rata interest in the Fund, but votes separately on class-specific
matters and is subject to different expenses.
The Fund
applies the accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services – Investment Companies (ASC 946).
Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements.
A Investment
Valuation— Net asset value per share is determined every business day as of the close of the regular session of the New York Stock Exchange (generally 4:00 p.m. Eastern time).
The Fund uses independent pricing services approved by the Board of Directors (the Board) to value its investments wherever possible. Investments for which market quotations are not available or deemed not reliable are fair valued in good faith
under the direction of the Board.
U.S. generally
accepted accounting principles (U.S. GAAP) establishes a disclosure hierarchy that categorizes the inputs to valuation techniques used to value assets and liabilities at measurement date. These inputs are summarized in the three broad levels listed
below:
Level 1 - quoted prices in active markets for
identical securities
Level 2 - other significant
observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
Level 3 - significant unobservable inputs (including the
Fund’s own assumptions in determining the fair value of investments)
The inputs or methodologies used for valuing securities are not
necessarily an indication of the risk associated with investing in those securities.
Valuation techniques used to value the Fund’s investments
by major category are as follows:
Equity Securities. Equity securities (including warrants and rights) listed on a U.S. securities exchange generally are valued at the last sale or closing price as reported by an independent pricing service on the primary market or
exchange on which they are traded and are categorized as Level 1 in the hierarchy. Equity securities listed on the NASDAQ National Market System are valued at the NASDAQ official closing price and are categorized as Level 1 in the hierarchy.
Unlisted or listed securities for which closing sales prices or closing quotations are not available are valued at the mean between the latest available bid and ask prices and are categorized as Level 2 in the hierarchy.
Debt Securities. Debt
securities are generally valued based on valuations provided by third party pricing services, as derived from such services’ pricing models. Inputs to the models may include, but are not limited to, reported trades, executable bid and ask
prices, broker/dealer quotations, prices or yields of securities with similar characteristics, interest rates, anticipated prepayments, benchmark curves or information pertaining to the issuer, as well as industry and economic events. Accordingly,
debt securities are generally categorized as Level 2 in the hierarchy. Short-term debt securities with a remaining maturity at time of purchase of more than sixty days are valued based on valuations provided by a third party pricing service. Such
securities are generally categorized as Level 2 in the hierarchy. Short-term debt securities of sufficient credit quality purchased with remaining maturities of sixty days or less for which a valuation from a third party pricing service is not
readily available may be valued at amortized cost, which approximates fair value, and are categorized as Level 2 in the hierarchy.
Senior Floating-Rate Loans.
Interests in senior-floating rate loans for which reliable market quotations are readily available are valued generally at the average mean of bid and ask quotations obtained from a third party pricing service, and are categorized as Level 2 in the
hierarchy.
Affiliated Fund. The Fund may invest in Calvert Cash Reserves Fund, LLC (Cash Reserves Fund), an affiliated investment company managed by Calvert Research and Management (CRM). While Cash Reserves Fund is not a registered money market
mutual fund, it conducts all of its investment activities in accordance with the requirements of Rule 2a-7 under the 1940 Act. Investments in Cash Reserves Fund are valued at the closing net asset value per unit on the valuation day and are
categorized as Level 2 in the hierarchy. Cash Reserves Fund generally values its investment securities based on available market quotations provided by a third party pricing service.
Other Securities. Investments
in registered investment companies (including money market funds) that do not trade on an exchange are valued at the net asset value per share on the valuation day and are categorized as Level 1 in the hierarchy.
Derivatives. Futures contracts
are valued at unrealized appreciation (depreciation) based on the settlement price established each day by the board of trade
21
Calvert
Green Bond Fund
September 30, 2021
Notes to Financial
Statements — continued
or exchange on which
they are traded and are categorized as Level 1 in the hierarchy. Forward foreign currency exchange contracts are generally valued at the mean of the average bid and average ask prices that are reported by
currency dealers to a third party pricing service at the valuation time. Such third party pricing service valuations are supplied for specific settlement periods and the Fund's forward foreign currency exchange contracts are valued at an
interpolated rate between the closest preceding and subsequent settlement period reported by the third party pricing service and are categorized as Level 2 in the hierarchy.
Fair Valuation. If a market
value cannot be determined for a security using the methodologies described above, or if, in the good faith opinion of the Fund's adviser, the market value does not constitute a readily available market quotation, or if a significant event has
occurred that would materially affect the value of the security, the security will be fair valued as determined in good faith by or at the direction of the Board in a manner that most fairly reflects the security’s “fair value”,
which is the amount that the Fund might reasonably expect to receive for the security upon its current sale in the ordinary course. Each such determination is based on a consideration of relevant factors, which are likely to vary from one pricing
context to another. These factors may include, but are not limited to, the type of security, the existence of any contractual restrictions on the security’s disposition, the price and extent of public trading in similar securities of the
issuer or of comparable companies or entities, quotations or relevant information obtained from broker/dealers or other market participants, information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange-traded
securities), an analysis of the company’s or entity’s financial statements, and an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold.
The values assigned to fair value investments are based on
available information and do not necessarily represent amounts that might ultimately be realized. Further, due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have
been used had an active market existed, and the differences could be material.
The following table summarizes the market value of the Fund's
holdings as of September 30, 2021, based on the inputs used to value them:
| Asset Description | Level 1 | Level 2 | Level 3 | Total |
| Asset-Backed Securities | $ — | $ 106,475,526 | $ — | $ 106,475,526 |
| Commercial Mortgage-Backed Securities | — | 53,568,585 | — | 53,568,585 |
| Common Stocks | 2,215,056 (1) | — | — | 2,215,056 |
| Corporate Bonds | — | 578,981,577 | — | 578,981,577 |
| High Social Impact Investments | — | 1,670,811 | — | 1,670,811 |
| Preferred Stocks | 15,527,664 | — | — | 15,527,664 |
| Senior Floating-Rate Loans | — | 3,155,186 | — | 3,155,186 |
| Sovereign Government Bonds | — | 116,947,721 | — | 116,947,721 |
| Taxable Municipal Obligations | — | 27,121,747 | — | 27,121,747 |
| U.S. Government Agencies and Instrumentalities | — | 11,295,434 | — | 11,295,434 |
| U.S. Government Agency Mortgage-Backed Securities | — | 4,037,725 | — | 4,037,725 |
| Short-Term Investments: | ||||
| Affiliated Fund | — | 35,218,651 | — | 35,218,651 |
| Securities Lending Collateral | 12,633,849 | — | — | 12,633,849 |
| Total Investments | $30,376,569 | $938,472,963 | $ — | $968,849,532 |
| Forward Foreign Currency Exchange Contracts | $ — | $ 3,674,066 | $ — | $ 3,674,066 |
| Futures Contracts | 2,213,341 | — | — | 2,213,341 |
| Total | $32,589,910 | $942,147,029 | $ — | $974,736,939 |
| Liability Description | ||||
| Futures Contracts | $ (351,503) | $ — | $ — | $ (351,503) |
| Total | $ (351,503) | $ — | $ — | $ (351,503) |
| (1) | The level classification by major category of investments is the same as the category presentation in the Schedule of Investments. |
B Investment Transactions and Income— Investment transactions for financial statement purposes are accounted for on trade date. Realized gains and losses are recorded on an identified cost basis and may include
proceeds from litigation. Dividend income is recorded on the ex-dividend date for dividends received in cash and/or securities. Non-cash dividends are recorded at the fair value of the securities received. Withholding taxes on foreign interest, if any, have been provided for in accordance with the Fund’s understanding of the applicable country’s tax rules and rates. Interest income, which includes
22
Calvert
Green Bond Fund
September 30, 2021
Notes to Financial
Statements — continued
amortization of
premium and accretion of discount on debt securities, is accrued as earned. The Fund may earn certain fees in connection with its investments in senior floating-rate loans. These fees are in addition to
interest payments earned and may include amendment fees, consent fees and prepayment fees, which are recorded to income as earned.
C Share Class Accounting— Realized and unrealized gains and losses are allocated daily to each class of shares based upon the relative net assets of each class to the total net assets of the Fund. Net
investment income, other than class-specific expenses, is allocated daily to each class of shares based upon the ratio of the value of each class’s paid shares to the total value of all paid shares. Expenses arising in connection with a
specific class are charged directly to that class. Sub-accounting, recordkeeping and similar administrative fees payable to financial intermediaries, which are a component of transfer agency fees and expenses on the Statement of Operations, are not
allocated to Class R6 shares.
D Foreign
Currency Transactions— The Fund’s accounting records are maintained in U.S. dollars. For valuation of assets and liabilities on each date of net asset value
determination, foreign denominations are converted into U.S. dollars using the current exchange rate. Security transactions, income and expenses are translated at the prevailing rate of exchange on the date of the event. Recognized gains or losses
on investment transactions attributable to changes in foreign currency exchange rates are recorded for financial statement purposes as net realized gains and losses on investments. That portion of unrealized gains and losses on investments that
results from fluctuations in foreign currency exchange rates is not separately disclosed.
E Senior Floating-Rate Loans— The Fund may invest in direct debt instruments, which are interests in amounts owed to lenders or lending syndicates by corporate, governmental, or other borrowers. The
Fund’s investment in loans may be in the form of participations in loans or assignments of all or a portion of loans from third parties. A loan is often administered by a bank or other financial institution (the lender) that acts as agent for
all holders. The agent administers the terms of the loan, as specified in the loan agreement. The Fund may invest in multiple series or tranches of a loan, which may have varying terms and carry different associated risks. When the Fund purchases
assignments from lenders, it acquires direct rights against the borrower of the loan. When investing in a loan participation, the Fund has the right to receive payments of principal, interest and any fees to which it is entitled only from the lender
selling the loan agreement and only upon receipt of such payments by the lender from the borrower. The Fund generally has no right to enforce compliance by the borrower with the terms of the loan agreement. As a result, the Fund may be subject to
the credit risk of both the borrower and the lender that is issuing the participation interest.
F Futures
Contracts— The Fund may enter into futures contracts to buy or sell a financial instrument for a set price at a future date. Initial margin deposits of either cash or
securities as required by the broker are made upon entering into the contract. While the contract is open, daily variation margin payments are made to or received from the broker reflecting the daily change in market value of the contract and are
recorded for financial reporting purposes as unrealized gains or losses by the Fund. When a futures contract is closed, a realized gain or loss is recorded equal to the difference between the opening and closing value of the contract. The risks
associated with entering into futures contracts may include the possible illiquidity of the secondary market which would limit the Fund’s ability to close out a futures contract prior to the settlement date, an imperfect correlation between
the value of the contracts and the underlying financial instruments, or that the counterparty will fail to perform its obligations under the contracts’ terms. Futures contracts are designed by boards of trade, which are designated
“contracts markets” by the Commodities Futures Trading Commission. Futures contracts trade on the contracts markets in a manner that is similar to the way a stock trades on a stock exchange, and the boards of trade, through their
clearing corporations, guarantee the futures contracts against default. As a result, there is minimal counterparty credit risk to the Fund.
G Forward Foreign Currency Exchange Contracts— The Fund may enter into forward foreign currency exchange contracts for the purchase or sale of a specific foreign currency at a fixed price on a future date. The forward foreign
currency exchange contracts are adjusted by the daily exchange rate of the underlying currency and any gains or losses are recorded as unrealized until such time as the contracts have been closed. Risks may arise upon entering these contracts from
the potential inability of counterparties to meet the terms of their contracts and from movements in the value of a foreign currency relative to the U.S. dollar.
H Restricted Securities— The Fund may invest in securities that are subject to legal or contractual restrictions on resale. Generally, these securities may only be sold publicly upon registration under
the Securities Act of 1933 or in transactions exempt from such registration. Information regarding restricted securities (excluding Rule 144A securities) is included at the end of the Schedule of Investments.
I Distributions to Shareholders— Distributions to shareholders are recorded by the Fund on ex-dividend date. The Fund declares income distributions daily to shareholders of record at the time of declaration and
generally pays them monthly. The Fund makes distributions of net realized capital gains, if any, at least annually. Distributions are declared separately for each class of shares. Distributions are determined in accordance with income tax
regulations, which may differ from U.S. GAAP; accordingly, periodic reclassifications are made within the Fund’s capital accounts to reflect income and gains available for distribution under income tax regulations.
J Estimates— The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.
K
Indemnifications— The Corporation’s By-Laws provide for indemnification for Directors or officers of the Corporation and certain other parties, to the fullest extent
permitted by Maryland law and the 1940 Act, provided certain conditions are met. Additionally, in the normal course of business, the Fund
23
Calvert
Green Bond Fund
September 30, 2021
Notes to Financial
Statements — continued
enters into
agreements with service providers that may contain indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred.
L Federal Income
Taxes— No provision for federal income or excise tax is required since the Fund intends to continue to qualify as a regulated investment company under the Internal Revenue Code
and to distribute substantially all of its taxable earnings.
Management has analyzed the Fund's tax positions taken for all
open federal income tax years and has concluded that no provision for federal income tax is required in the Fund's financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service for a period of three
years from the date of filing.
M When-Issued
Securities and Delayed Delivery Transactions— The Fund may purchase securities on a delayed delivery, when-issued or forward commitment basis, including TBA (To Be Announced)
securities. Payment and delivery may take place after the customary settlement period for that security. At the time the transaction is negotiated, the price of the security that will be delivered is fixed. The Fund maintains cash and/or security
positions for these commitments such that sufficient liquid assets will be available to make payments upon settlement. Securities purchased on a delayed delivery, when-issued or forward commitment basis are marked-to-market daily and begin earning
interest on settlement date. Such security purchases are subject to the risk that when delivered they will be worth less than the agreed upon payment price. Losses may also arise if the counterparty does not perform under the contract. A forward
purchase commitment may be closed by entering into an offsetting commitment. The Fund will realize a gain or loss on investments based on the price established when the Fund entered into the commitment.
2 Related Party Transactions
The investment advisory fee is earned by CRM as compensation
for investment advisory services rendered to the Fund. On March 1, 2021, Morgan Stanley acquired Eaton Vance Corp. (the “Transaction”) and CRM became an indirect, wholly-owned subsidiary of Morgan Stanley. In connection with the
Transaction, the Fund entered into a new investment advisory agreement (the “New Agreement”) with CRM, which took effect on March 1, 2021. Pursuant to the New Agreement (and the Fund's investment advisory agreement with CRM in effect
prior to March 1, 2021), the fee is computed at the annual rate of 0.25% of the Fund’s average daily net assets and is payable monthly. For the year ended September 30, 2021, the investment advisory fee amounted to $2,075,824. The Fund may
invest its cash in Cash Reserves Fund. CRM does not currently receive a fee for advisory services provided to Cash Reserves Fund.
CRM has agreed to reimburse the Fund's operating expenses to
the extent that total annual operating expenses (relating to ordinary operating expenses only and excluding expenses such as brokerage commissions, acquired fund fees and expenses of unaffiliated funds, borrowing costs, taxes or litigation expenses)
exceed 0.73%, 0.48% and 0.43% for Class A, Class I and Class R6, respectively, of such class’s average daily net assets. The expense reimbursement agreement with CRM may be changed or terminated after January 31, 2022. For the year ended
September 30, 2021, CRM waived or reimbursed expenses of $266,893.
The administrative fee is earned by CRM as compensation for
administrative services rendered to the Fund. The fee is computed at an annual rate of 0.12% of the Fund’s average daily net assets attributable to Class A, Class I and Class R6 and is payable monthly. For the year ended September 30, 2021,
CRM was paid administrative fees of $996,395.
The Fund
has in effect a distribution plan for Class A shares (Class A Plan) pursuant to Rule 12b-1 under the 1940 Act. Pursuant to the Class A Plan, the Fund pays Eaton Vance Distributors, Inc. (EVD), an affiliate of CRM and the Fund’s principal
underwriter, a distribution and service fee of 0.25% per annum of its average daily net assets attributable to Class A shares for distribution services and facilities provided to the Fund by EVD, as well as for personal services and/or the
maintenance of shareholder accounts. Distribution and service fees paid or accrued for the year ended September 30, 2021 amounted to $209,597 for Class A shares.
The Fund was informed that EVD received $36,718 as its portion
of the sales charge on sales of Class A shares and less than $100 of contingent deferred sales charges paid by Fund shareholders for the year ended September 30, 2021.
Eaton Vance Management (EVM), an affiliate of CRM, provides
sub-transfer agency and related services to the Fund pursuant to a Sub-Transfer Agency Support Services Agreement. For the year ended September 30, 2021, sub-transfer agency fees and expenses incurred to EVM amounted to $46,233 and are included in
transfer agency fees and expenses on the Statement of Operations.
Each Director of the Fund who is not an employee of CRM or its
affiliates receives an annual fee of $154,000, plus an annual Committee fee ranging from $8,500 to $16,500 depending on the Committee. The Board chair receives an additional $30,000 ($20,000 prior to January 1, 2021) annual fee and Committee chairs
receive an additional $6,000 annual fee. Eligible Directors may participate in a Deferred Compensation Plan (the Plan). Amounts deferred under the Plan are treated as though equal dollar amounts had been invested in shares of the Fund or other
Calvert funds selected by the Directors. The Fund purchases shares of the funds selected equal to the dollar amounts deferred under the Plan, resulting in an asset equal to the deferred compensation liability. Obligations of the Plan are paid solely
from the Fund's assets. Directors’ fees are allocated to each of the Calvert funds served. Salaries and fees of officers and Directors of the Fund who are employees of CRM or its affiliates are paid by CRM. Prior to December 31, 2020, an
24
Calvert
Green Bond Fund
September 30, 2021
Notes to Financial
Statements — continued
Advisory Council
aided the Board and CRM in advancing the cause of responsible investing through original scholarship and thought leadership. The Advisory Council consisted of CRM’s Chief Executive Officer and three additional members. For the year ended
December 31, 2020, each member (other than CRM’s Chief Executive Officer) was compensated $20,000 for their service on the Advisory Council. Such compensation, and any other compensation and/or expenses incurred by the Advisory Council as may
be approved by the Board, was borne by the Calvert funds. For the year ended September 30, 2021, the Fund’s allocated portion of the Advisory Council compensation and fees was $841, which is included
in miscellaneous expense on the Statement of Operations.
3 Investment Activity
During the year ended September 30, 2021, the cost of purchases
and proceeds from sales of investments, other than U.S. government and agency securities and short-term securities and including maturities, paydowns and principal repayments on senior floating-rate loans, were $493,312,674 and $148,658,297,
respectively. Purchases and sales of U.S. government and agency securities, including paydowns, were $24,235,032 and $31,633,457, respectively.
4 Distributions to Shareholders and Income Tax
Information
The tax character of distributions declared
for the years ended September 30, 2021 and September 30, 2020 was as follows:
| Year Ended September 30, | ||
| 2021 | 2020 | |
| Ordinary income | $13,700,471 | $10,365,628 |
| Long-term capital gains | $ — | $ 103,145 |
During the year ended September 30, 2021, distributable
earnings was decreased by $567,755 and paid-in capital was increased by $567,755 due to the Fund's use of equalization accounting. Tax equalization accounting allows the Fund to treat as a distribution that
portion of redemption proceeds representing a redeeming shareholder’s portion of undistributed taxable income and net capital gains. These reclassifications had no effect on the net assets or net
asset value per share of the Fund.
As of September 30,
2021, the components of distributable earnings (accumulated loss) on a tax basis were as follows:
| Undistributed ordinary income | $ 1,020,996 |
| Undistributed long-term capital gains | 3,282,913 |
| Net unrealized appreciation | 11,578,729 |
| Distributions payable | (23,412) |
| Distributable earnings | $15,859,226 |
The cost and unrealized appreciation
(depreciation) of investments, including open derivative contracts, of the Fund at September 30, 2021, as determined on a federal income tax basis, were as follows:
| Aggregate cost | $957,247,684 |
| Gross unrealized appreciation | $ 20,762,652 |
| Gross unrealized depreciation | (9,160,804) |
| Net unrealized appreciation | $ 11,601,848 |
25
Calvert
Green Bond Fund
September 30, 2021
Notes to Financial
Statements — continued
5 Financial Instruments
The Fund may trade in financial instruments with off-balance
sheet risk in the normal course of its investing activities. These financial instruments may include forward foreign currency exchange contracts and futures contracts and may involve, to a varying degree, elements of risk in excess of the amounts
recognized for financial statement purposes. The notional or contractual amounts of these instruments represent the investment the Fund has in particular classes of financial instruments and do not necessarily represent the amounts potentially
subject to risk. The measurement of the risks associated with these instruments is meaningful only when all related and offsetting transactions are considered. A summary of obligations under these financial instruments at September 30, 2021 is
included in the Schedule of Investments. At September 30, 2021, the Fund had sufficient cash and/or securities to cover commitments under these contracts.
In the normal course of pursuing its investment objective, the
Fund is subject to the following risks:
Foreign Exchange
Risk: During the year ended September 30, 2021, the Fund entered into forward foreign currency exchange contracts to seek to hedge against the decline in the value of currencies in which its portfolio holdings are denominated against the U.S.
dollar.
Interest Rate Risk: During the year ended
September 30, 2021, the Fund used futures contracts to hedge interest rate risk and to manage duration.
The Fund enters into forward foreign currency exchange
contracts that may contain provisions whereby the counterparty may terminate the contract under certain conditions, including but not limited to a decline in the Fund’s net assets below a certain level over a certain period of time, which
would trigger a payment by the Fund for those derivatives in a liability position. At September 30, 2021, the Fund had no open derivatives with credit-related contingent features in a net liability position.
The over-the-counter (OTC) derivatives in which the Fund
invests are subject to the risk that the counterparty to the contract fails to perform its obligations under the contract. To mitigate this risk, the Fund has entered into an International Swaps and Derivatives Association, Inc. Master Agreement
(“ISDA Master Agreement”) with its derivative counterparty. The ISDA Master Agreement is a bilateral agreement between the Fund and the counterparty that governs certain OTC derivatives and typically contains, among other things, set-off
provisions in the event of a default and/or termination event as defined under the ISDA Master Agreement. Under the ISDA Master Agreement, the Fund may, under certain circumstances, offset with the counterparty certain derivative financial
instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy
or insolvency of the counterparty. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy or insolvency. The ISDA Master Agreement allows the
counterparty to OTC derivatives to terminate derivative contracts prior to maturity in the event the Fund’s net assets decline by a stated percentage or the Fund fails to meet the terms of its ISDA Master Agreement, which would cause the
counterparty to accelerate payment by the Fund of any net liability owed to it.
The collateral requirements for derivatives traded under the
ISDA Master Agreement are governed by a Credit Support Annex to the ISDA Master Agreement. Collateral requirements are determined at the close of business each day and are typically based on changes in market values for each transaction under the
ISDA Master Agreement and netted into one amount for such agreement. Generally, the amount of collateral due from or to a counterparty is subject to a minimum transfer threshold amount before a transfer is required. Collateral pledged for the
benefit of the Fund and/or counterparty is held in segregated accounts by the Fund’s custodian and cannot be sold, re-pledged, assigned or otherwise used while pledged. The portion of such collateral representing cash, if any, is reflected as
deposits for derivatives collateral and, in the case of cash pledged by a counterparty for the benefit of the Fund, a corresponding liability on the Statement of Assets and Liabilities. Securities pledged by the Fund as collateral, if any, are
identified as such in the Schedule of Investments.
At
September 30, 2021, the fair value of open derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) by risk exposure was as follows:
| Risk | Derivative | Statement of Assets and Liabilities Caption | Assets | Liabilities |
| Foreign exchange | Forward foreign currency exchange contracts | Receivable/Payable
for open forward foreign currency exchange contracts |
$ 3,674,066 | $ — |
| Interest rate | Futures contracts | Distributable earnings | 2,213,341 (1) | (351,503) (1) |
| Total | $5,887,407 | $(351,503) | ||
| Derivatives not subject to master netting agreement | $2,213,341 | $(351,503) | ||
| Total Derivatives subject to master netting agreement | $3,674,066 | $ — | ||
| (1) | Only the current day's variation margin is reported within the Statement of Assets and Liabilities as Receivable or Payable for variation margin on open futures contracts, as applicable. |
26
Calvert
Green Bond Fund
September 30, 2021
Notes to Financial
Statements — continued
The
Fund’s derivative assets and liabilities at fair value by risk, which are reported gross in the Statement of Assets and Liabilities, are presented in the table above. The following table presents the Fund’s derivative assets by
counterparty, net of amounts available for offset under a master netting agreement and net of the related collateral received by the Fund for such assets as of September 30, 2021.
| Counterparty | Derivative
Assets Subject to Master Netting Agreement |
Derivatives
Available for Offset |
Non-cash
Collateral Received(a) |
Cash
Collateral Received(a) |
Net
Amount of Derivative Assets(b) |
| State Street Bank and Trust Company | $3,674,066 | $ — | $(3,562,826) | $ — | $111,240 |
| (a) | In some instances, the total collateral received and/or pledged may be more than the amount shown due to overcollateralization. |
| (b) | Net amount represents the net amount due from the counterparty in the event of default. |
The effect of derivative instruments (not considered to be
hedging instruments for accounting disclosure purposes) on the Statement of Operations by risk exposure for the year ended September 30, 2021 was as follows:
| Statement of Operations Caption | Foreign exchange | Interest rate | Total |
| Net realized gain (loss): | |||
| Forward foreign currency exchange contracts | $ 2,124,608 | $ — | $ 2,124,608 |
| Futures contracts | — | 1,887,986 | 1,887,986 |
| Total | $2,124,608 | $1,887,986 | $4,012,594 |
| Change in unrealized appreciation (depreciation): | |||
| Forward foreign currency exchange contracts | $ 2,295,188 | $ — | $ 2,295,188 |
| Futures contracts | — | 1,900,948 | 1,900,948 |
| Total | $2,295,188 | $1,900,948 | $4,196,136 |
The average notional cost of futures
contracts and average notional amounts of other derivative contracts outstanding during the year ended September 30, 2021, which are indicative of the volume of these derivative types, were approximately as follows:
| Futures
Contracts — Long |
Futures
Contracts — Short |
Forward
Foreign Currency Exchange Contracts* |
| $41,881,000 | $89,761,000 | $194,545,000 |
| * | The average notional amount for forward foreign currency exchange contracts is based on the absolute value of notional amounts of currency purchased and currency sold. |
6 Securities Lending
To generate additional income, the Fund may lend its securities
pursuant to a securities lending agency agreement with State Street Bank and Trust Company (SSBT), the securities lending agent. Security loans are subject to termination by the Fund at any time and, therefore, are not considered illiquid
investments. The Fund requires that the loan be continuously collateralized by either cash or securities in an amount at least equal to the market value of the securities on loan. The market value of securities loaned is determined daily and any
additional required collateral is delivered to the Fund on the next business day. Cash collateral is generally invested in a money market fund registered under the 1940 Act that is managed by an affiliate of SSBT. Any gain or loss in the market
price of the loaned securities that might occur and any interest earned or dividends declared during the term of the loan would accrue to the account of the Fund. Income earned on the investment of collateral, net of broker rebates and other
expenses incurred by the securities lending agent, is split between the Fund and the securities lending agent based on agreed upon contractual terms. Non-cash collateral, if any, is held by the lending agent on behalf of the Fund and cannot be sold
or re-pledged by the Fund; accordingly, such collateral is not reflected in the Statement of Assets and Liabilities.
27
Calvert
Green Bond Fund
September 30, 2021
Notes to Financial
Statements — continued
The
risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights to the collateral should the borrower fail
financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. The securities lending agent shall indemnify the Fund in the case of default of any securities borrower.
At September 30, 2021, the total value of securities on loan,
including accrued interest, was $12,365,711 and the total value of collateral received was $12,633,849, comprised of cash.
The following table provides a breakdown of securities lending
transactions accounted for as secured borrowings, the obligations by class of collateral pledged, and the remaining contractual maturity of those transactions as of September 30, 2021.
| Remaining Contractual Maturity of the Transactions | |||||
| Overnight
and Continuous |
<30 days | 30 to 90 days | >90 days | Total | |
| Corporate Bonds | $ 11,585,961 | $ — | $ — | $ — | $ 11,585,961 |
| Preferred Stocks | 842,025 | — | — | — | 842,025 |
| Sovereign Government Bonds | 205,863 | — | — | — | 205,863 |
| Total | $12,633,849 | $ — | $ — | $ — | $12,633,849 |
The carrying amount of the liability
for deposits for securities loaned at September 30, 2021 approximated its fair value. If measured at fair value, such liability would have been considered as Level 2 in the fair value hierarchy (see Note 1A) at September 30, 2021.
7 Line of Credit
The Fund participates with other portfolios and funds managed
by EVM and its affiliates, including CRM, in an $800 million unsecured line of credit with a group of banks, which is in effect through October 26, 2021. Borrowings are made by the Fund solely for temporary purposes related to redemptions and other
short-term cash needs. Interest is charged to the Fund based on its borrowings at an amount above either the Eurodollar rate or Federal Funds rate. In addition, a fee computed at an annual rate of 0.15% on the daily unused portion of the line of
credit is allocated among the participating portfolios and funds at the end of each quarter. In connection with the renewal of the agreement in October 2020, an upfront fee and arrangement fee totaling $950,000 was incurred that was allocated to the
participating portfolios and funds. Because the line of credit is not available exclusively to the Fund, it may be unable to borrow some or all of its requested amounts at any particular time.
The Fund had no borrowings pursuant to its line of credit
during the year ended September 30, 2021. Effective October 26, 2021, the Fund renewed its line of credit agreement, which expires October 25, 2022, at substantially the same terms.
8 Affiliated Issuers and Funds
The Fund has invested a portion of its assets in notes (the
Notes) issued by Calvert Impact Capital, Inc. (CIC) pursuant to exemptive relief granted by the U.S. Securities and Exchange Commission (the SEC). There are certain potential points of affiliation between the Fund and CIC. CRM has licensed use of
the Calvert name to CIC and provides other types of support. CRM’s President and Chief Executive Officer (and the only director/trustee on the Fund Board that is an “interested person” of the Fund) serves on the CIC Board. In
addition, another director/trustee on the Fund Board serves as a director emeritus on the CIC Board.
In addition to the Notes, the Fund invested in issuers that may
be deemed to be affiliated with Morgan Stanley. At September 30, 2021, the value of the Fund's investment in the Notes and affiliated issuers and funds was $38,033,631, which represents 4.0% of the Fund's net assets. Transactions in the Notes and
affiliated issuers and funds by the Fund for the year ended September 30, 2021 were as follows:
| Name | Value,
beginning of period |
Purchases | Sales
proceeds |
Net
realized gain (loss) |
Change
in unrealized appreciation (depreciation) |
Value,
end of period |
Interest/
Dividend income |
Principal
amount/Units, end of period |
| Corporate Bonds | ||||||||
| Mitsubishi UFJ Financial Group, Inc., 2.527%, 9/13/23(1) | $ — | $ — | $ — | $ — | $ (18,365) | $ 1,144,169 | $ 18,704 | $ 1,100,000 |
| High Social Impact Investments | ||||||||
| Calvert Impact Capital, Inc., Community Investment Notes: | ||||||||
28
Calvert
Green Bond Fund
September 30, 2021
Notes to Financial
Statements — continued
| Name | Value,
beginning of period |
Purchases | Sales
proceeds |
Net
realized gain (loss) |
Change
in unrealized appreciation (depreciation) |
Value,
end of period |
Interest/
Dividend income |
Principal
amount/Units, end of period |
| 1.50%, 12/15/20(2) | $1,189,991 | $ — | $ (1,196,055) | $ — | $ 6,064 | $ — | $ 3,738 | $ — |
| 1.50%, 12/15/23(2) | — | 1,700,000 | — | — | (29,189) | 1,670,811 | 20,258 | 1,700,000 |
| Short-Term Investments | ||||||||
| Calvert Cash Reserves Fund, LLC | 3,019,064 | 430,095,719 | (397,895,514) | (4,139) | 3,521 | 35,218,651 | 31,651 | 35,215,130 |
| Totals | $(4,139) | $ (37,969) | $38,033,631 | $74,351 | ||||
| (1) | May be deemed to be an affiliated issuer as of March 1, 2021 (see Note 2). |
| (2) | Restricted security. |
9 Capital
Shares
The Corporation may issue its shares in one or
more series (such as the Fund). The authorized shares of the Fund consist of 75,000,000 common shares, $0.01 par value, for each Class.
Transactions in capital shares for the years ended September
30, 2021 and September 30, 2020 were as follows:
| Year
Ended September 30, 2021 |
Year
Ended September 30, 2020 | ||||
| Shares | Amount | Shares | Amount | ||
| Class A | |||||
| Shares sold | 1,872,632 | $ 30,546,215 | 2,062,278 | $ 32,912,680 | |
| Reinvestment of distributions | 70,723 | 1,153,006 | 82,759 | 1,321,476 | |
| Shares redeemed | (1,190,930) | (19,402,870) | (1,058,461) | (16,843,867) | |
| Net increase | 752,425 | $ 12,296,351 | 1,086,576 | $ 17,390,289 | |
| Class I | |||||
| Shares sold | 34,965,708 | $ 571,139,915 | 19,929,297 | $ 319,155,887 | |
| Reinvestment of distributions | 744,904 | 12,148,463 | 547,153 | 8,759,879 | |
| Shares redeemed | (14,799,489) | (240,597,933) | (5,971,478) | (94,122,760) | |
| Net increase | 20,911,123 | $ 342,690,445 | 14,504,972 | $233,793,006 | |
| Class R6 | |||||
| Shares sold | 449,216 | $ 7,321,761 | 198,342 | $ 3,220,456 | |
| Reinvestment of distributions | 2,804 | 45,742 | 1,195 | 19,204 | |
| Shares redeemed | (74,497) | (1,214,457) | (40,354) | (641,234) | |
| Net increase | 377,523 | $ 6,153,046 | 159,183 | $ 2,598,426 | |
10 Risks and Uncertainties
Risks Associated with Foreign Investments
Foreign investments can be adversely affected by political,
economic and market developments abroad, including the imposition of economic and other sanctions by the United States or another country. There may be less publicly available information about foreign issuers because they may not be subject to
reporting practices, requirements or regulations comparable to those to which United States companies are subject. Foreign markets may be smaller, less liquid and more volatile than the major markets in the United States. Trading in foreign markets
typically involves higher expense than trading in the United States. The Fund may have difficulties enforcing its legal or contractual rights in a foreign country. Securities that trade or are denominated in currencies other than the U.S. dollar may
be adversely affected by fluctuations in currency exchange rates.
29
Calvert
Green Bond Fund
September 30, 2021
Notes to Financial
Statements — continued
Economic data as reported by sovereign entities may be delayed,
inaccurate or fraudulent. In the event of a default by a sovereign entity, there are typically no assets to be seized or cash flows to be attached. Furthermore, the willingness or ability of a sovereign entity to restructure defaulted debt may be
limited. Therefore, losses on sovereign defaults may far exceed the losses from the default of a similarly rated U.S. debt issuer.
Pandemic Risk
An outbreak of respiratory disease caused by a novel
coronavirus was first detected in China in late 2019 and subsequently spread internationally. This coronavirus has resulted in closing borders, enhanced health screenings, changes to healthcare service preparation and delivery, quarantines,
cancellations, disruptions to supply chains and customer activity, as well as general concern and uncertainty. Health crises caused by outbreaks, such as the coronavirus outbreak, may exacerbate other pre-existing political, social and economic
risks and disrupt normal market conditions and operations. The impact of this outbreak has negatively affected the worldwide economy, the economies of individual countries, individual companies, and the market in general, and may continue to do so
in significant and unforeseen ways, as may other epidemics and pandemics that may arise in the future. Any such impact could adversely affect the Fund's performance, or the performance of the securities in which the Fund invests.
11 Change in Independent Registered Public
Accounting Firm
On July 30, 2021, KPMG LLP
(“KPMG”) informed the Audit Committee and Board of the Corporation that it was resigning as the independent registered public accounting firm to the Corporation, as upon Morgan Stanley’s acquisition of Eaton Vance Corp., the parent
company of CRM (the investment adviser to each series of the Corporation), KPMG would no longer be independent of the Corporation. The Audit Committee of the Board and the Board approved the selection of Deloitte & Touche LLP
(“Deloitte”) as the independent registered public accounting firm for the funds that are series of the Corporation (the “Funds”) for the fiscal year ending September 30, 2021 to be effective upon KPMG’s resignation and
Deloitte’s acceptance of the engagement which became effective July 30, 2021.
KPMG’s reports on the financial statements for the Funds
for the fiscal periods ended September 30, 2019 and September 30, 2020 contained no adverse opinion or disclaimer of opinion nor were they qualified or modified as to uncertainty, audit scope or accounting principles. During the fiscal periods ended
September 30, 2019 and September 30, 2020, and during the subsequent interim period through July 30, 2021: (i) there were no disagreements with KPMG on any matter of accounting principles or practices, financial statement disclosure or auditing
scope or procedure, which disagreements, if not resolved to the satisfaction of KPMG, would have caused KPMG to make reference to the subject matter of the disagreements in connection with its reports on the Funds’ financial statements for
such periods; and (ii) there were no “reportable events” of the kind described in Item 304(a)(1)(v) of Regulation S-K under the Securities Exchange Act of 1934, as amended.
During the fiscal periods ended September 30, 2019 and
September 30, 2020, and during the subsequent interim period through July 30, 2021: neither the Funds, nor anyone on their behalf, consulted with Deloitte on items which: (i) concerned the application of accounting principles to a specified
transaction, either completed or proposed, or the type of audit opinion that might be rendered on the Funds’ financial statements; or (ii) concerned the subject of a disagreement (as defined in paragraph (a)(1)(iv) of Item 304 of Regulation
S-K) or reportable events (as described in paragraph (a)(1)(v) of Item 304).
30
Calvert
Green Bond Fund
September 30, 2021
Report of
Independent Registered Public Accounting Firm
To the
Board of Directors of Calvert Impact Fund, Inc. and Shareholders of Calvert Green Bond Fund:
Opinion on the Financial Statements and Financial
Highlights
We have audited the accompanying statement of
assets and liabilities of Calvert Green Bond Fund (the "Fund") (one of the funds constituting Calvert Impact Fund, Inc.), including the schedule of investments, as of September 30, 2021, the related statements of operations, changes in net assets
and the financial highlights for the year then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of September 30, 2021, and
the results of its operations and changes in its net assets for the year then ended, and the financial highlights for the year then ended in conformity with accounting principles generally accepted in the United States of America. The statement of
changes in net assets for the year ended September 30, 2020, and the financial highlights for the years or periods ended September 30, 2020, 2019, 2018, and 2017 were audited by other auditors whose report, dated November 20, 2020, expressed an
unqualified opinion on that financial statement and those financial highlights.
Basis for Opinion
These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audit. We are a public accounting firm registered with the Public Company Accounting
Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the
PCAOB.
We conducted our audit in accordance with the
standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The
Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting but not for the
purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audit included performing procedures to assess the risks of
material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and
disclosures in the financial statements and financial highlights. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial
statements and financial highlights. Our procedures included confirmation of securities owned as of September 30, 2021, by correspondence with the custodian, brokers and selling or agent banks; when replies were not received from brokers and selling
or agent banks, we performed other auditing procedures. We believe that our audit provides a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
November 22, 2021
Boston, Massachusetts
November 22, 2021
We have served as the auditor of one or
more Calvert investment companies since 2021.
31
Calvert
Green Bond Fund
September 30, 2021
Federal Tax
Information (Unaudited)
The
Form 1099-DIV you receive in February 2022 will show the tax status of all distributions paid to your account in calendar year 2021. Shareholders are advised to consult their own tax adviser with respect to the tax consequences of their investment
in the Fund. As required by the Internal Revenue Code and/or regulations, shareholders must be notified regarding the status of 163(j) interest dividends and capital gains dividends.
163(j) Interest Dividends. For
the fiscal year ended September 30, 2021, the Fund designates 90.69% of distributions from net investment income as a 163(j) interest dividend.
Capital Gains Dividends. The
Fund hereby designates as a capital gain dividend with respect to the taxable year ended September 30, 2021, $3,727,982 or, if subsequently determined to be different, the net capital gain of such year.
32
Calvert
Green Bond Fund
September 30, 2021
Liquidity Risk
Management Program
The
Fund has implemented a written liquidity risk management program (Program) and related procedures to manage its liquidity in accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (Liquidity Rule). The Liquidity Rule defines
“liquidity risk” as the risk that a fund could not meet requests to redeem shares issued by the fund without significant dilution of the remaining investors’ interests in the fund. The Fund’s Board of Trustees/Directors has
designated the investment adviser to serve as the administrator of the Program and the related procedures. The administrator has established a Liquidity Risk Management Oversight Committee (Committee) to perform the functions necessary to administer
the Program. As part of the Program, the administrator is responsible for identifying illiquid investments and categorizing the relative liquidity of the Fund’s investments in accordance with the Liquidity Rule. Under the Program, the
administrator assesses, manages, and periodically reviews the Fund’s liquidity risk, and is responsible for making certain reports to the Fund’s Board of Trustees/Directors and the Securities and Exchange Commission (SEC) regarding the
liquidity of the Fund’s investments, and to notify the Board of Trustees/Directors and the SEC of certain liquidity events specified in the Liquidity Rule. The liquidity of the Fund’s portfolio investments is determined based on a number
of factors including, but not limited to, relevant market, trading and investment-specific considerations under the Program.
At a meeting of the Fund’s Board of Trustees/Directors on
June 16, 2021, the Committee provided a written report to the Fund’s Board of Trustees/ Directors pertaining to the operation, adequacy, and effectiveness of implementation of the Program, as well as the operation of the highly liquid
investment minimum (if applicable) for the period January 1, 2020 through December 31, 2020 (Review Period). The Program operated effectively during the Review Period, supporting the administrator’s ability to assess, manage and monitor Fund
liquidity risk, including during periods of market volatility and net redemptions. During the Review Period, the Fund met redemption requests on a timely basis.
There can be no assurance that the Program will achieve its
objectives in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other principal risks to which an investment in the Fund may be subject.
33
Calvert
Green Bond Fund
September 30, 2021
Management and
Organization
Fund
Management. The Directors of Calvert Impact Fund, Inc. (the Corporation) are responsible for the overall management and supervision of the Corporation’s affairs. The Directors and officers of the Corporation
are listed below. Except as indicated, each individual has held the office shown or other offices in the same company for the last five years. Each Board member holds office until his or her successor is elected and qualified, or until his or her
earlier death, resignation, retirement, removal or disqualification. Under the terms of the Fund's current Board member retirement policy, an Independent Board member must retire at the end of the calendar year in which he or she turns 75. However,
if such retirement would cause the Fund to be out of compliance with Section 16 of the 1940 Act or any other regulations or guidance of the SEC, then such retirement and resignation will not become effective until such time as action has been taken
for the Fund to be in compliance upon a Board member's retirement. The “Independent Directors” consist of those Directors who are not “interested persons” of the Corporation, as that term is defined under the 1940 Act. The
business address of each Director and officer, with the exception of Ms. Walsh and Mr. Kirchner, is 1825 Connecticut Avenue NW, Suite 400, Washington, DC 20009. As used below, “CRM” refers to Calvert Research and Management. Each
Director oversees 39 funds in the Calvert fund complex. Each officer serves as an officer of certain other Calvert funds.
| Name and Year of Birth | Corporation
Position(s) |
Position
Start Date |
Principal
Occupation(s) and Other Directorships During Past Five Years and Other Relevant Experience |
| Interested Director | |||
| John
H. Streur(1) 1960 |
Director
and President |
2015 | President
and Chief Executive Officer of Calvert Research and Management (since December 31, 2016). President and Chief Executive Officer of Calvert Investments, Inc. (January 2015 - December 2016); Chief Executive Officer of Calvert Investment Distributors, Inc. (August 2015 - December 2016); Chief Compliance Officer of Calvert Investment Management, Inc. (August 2015 - April 2016); President and Director, Portfolio 21 Investments, Inc. (through October 2014); President, Chief Executive Officer and Director, Managers Investment Group LLC (through January 2012); President and Director, The Managers Funds and Managers AMG Funds (through January 2012). Other Directorships in the Last Five Years. Portfolio 21 Investments, Inc. (asset management) (through October 2014); Managers Investment Group LLC (asset management) (through January 2012); The Managers Funds (asset management) (through January 2012); Managers AMG Funds (asset management) (through January 2012); Calvert Impact Capital, Inc. |
| Independent Directors | |||
| Richard
L. Baird, Jr. 1948 |
Director | 2005 | Regional Disaster
Recovery Lead, American Red Cross of Greater Pennsylvania (since 2017). Volunteer, American Red Cross (since 2015). Former President and CEO of Adagio Health Inc. (retired in 2014) in Pittsburgh, PA. Other Directorships in the Last Five Years. None. |
| Alice
Gresham Bullock 1950 |
Chair
and Director |
2016 | Professor Emerita
at Howard University School of Law. Dean Emerita of Howard University School of Law and Deputy Director of the Association of American Law Schools (1992-1994). Other Directorships in the Last Five Years. None. |
| Cari
M. Dominguez 1949 |
Director | 2016 | Former
Chair of the U.S. Equal Employment Opportunity Commission. Other Directorships in the Last Five Years. Manpower, Inc. (employment agency); Triple S Management Corporation (managed care); National Association of Corporate Directors. |
| John
G. Guffey, Jr. 1948 |
Director | 2005 | President of
Aurora Press Inc., a privately held publisher of trade paperbacks (since January 1997). Other Directorships in the Last Five Years. Calvert Impact Capital, Inc. (through December 31, 2018); Calvert Ventures, LLC. |
| Miles
D. Harper, III 1962 |
Director | 2000 | Partner,
Carr Riggs & Ingram (public accounting firm) since October 2014. Partner, Gainer Donnelly & Desroches (public accounting firm) (now Carr Riggs & Ingram) (November 1999 - September 2014). Other Directorships in the Last Five Years. Bridgeway Funds (9) (asset management). |
| Joy
V. Jones 1950 |
Director | 2000 | Attorney.
Other Directorships in the Last Five Years. Conduit Street Restaurants SUD 2 Limited; Palm Management Restaurant Corporation. |
34
Calvert
Green Bond Fund
September 30, 2021
Management and
Organization — continued
| Name and Year of Birth | Corporation
Position(s) |
Position
Start Date |
Principal
Occupation(s) and Other Directorships During Past Five Years and Other Relevant Experience |
| Independent Directors (continued) | |||
| Anthony
A. Williams 1951 |
Director | 2016 | CEO
and Executive Director of the Federal City Council (July 2012 to present); Senior Adviser and Independent Consultant for King and Spalding LLP (September 2015 to present); Executive Director of Global Government Practice at the Corporate Executive Board (January 2010 to January 2012). Other Directorships in the Last Five Years. Freddie Mac; Evoq Properties/Meruelo Maddux Properties, Inc. (real estate management); Weston Solutions, Inc. (environmental services); Bipartisan Policy Center’s Debt Reduction Task Force; Chesapeake Bay Foundation; Catholic University of America; Urban Institute (research organization); The Howard Hughes Corporation (real estate development). |
| Name and Year of Birth | Corporation
Position(s) |
Position
Start Date |
Principal
Occupation(s) During Past Five Years |
| Principal Officers who are not Directors | |||
| Hope
L. Brown 1973 |
Chief
Compliance Officer |
2014 | Chief
Compliance Officer of 39 registered investment companies advised by CRM (since 2014). Vice President and Chief Compliance Officer, Wilmington Funds (2012-2014). |
| Deidre
E. Walsh(2) 1971 |
Secretary,
Vice President and Chief Legal Officer |
2021 | Vice
President of CRM and officer of 39 registered investment companies advised by CRM (since 2021). Also Vice President of Eaton Vance and certain of its affiliates and officer of 138 registered investment companies advised or administered by Eaton Vance. |
| James
F. Kirchner(2) 1967 |
Treasurer | 2016 | Vice
President of CRM and officer of 39 registered investment companies advised by CRM (since 2016). Also Vice President of Eaton Vance and certain of its affiliates and officer of 138 registered investment companies advised or administered by Eaton Vance. |
| (1) Mr. Streur is an interested person of the Fund because of his positions with the Fund’s adviser and certain affiliates. | |||
| (2) The business address for Ms. Walsh and Mr. Kirchner is Two International Place, Boston, MA 02110. | |||
The SAI for the Fund includes additional information about the
Directors and officers of the Fund and can be obtained without charge on Calvert’s website at www.calvert.com or by calling 1-800-368-2745.
35
Calvert Funds
| Privacy Notice | April 2021 |
| FACTS | WHAT
DOES EATON VANCE DO WITH YOUR PERSONAL INFORMATION? |
| Why? | Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do. |
| What? | The
types of personal information we collect and share depend on the product or service you have with us. This information can include:■ Social Security number and income ■ investment experience and risk tolerance ■ checking account number and wire transfer instructions |
| How? | All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons Eaton Vance chooses to share; and whether you can limit this sharing. |
| Reasons
we can share your personal information |
Does
Eaton Vance share? |
Can
you limit this sharing? |
| For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus | Yes | No |
| For our marketing purposes — to offer our products and services to you | Yes | No |
| For joint marketing with other financial companies | No | We don’t share |
| For our investment management affiliates’ everyday business purposes — information about your transactions, experiences, and creditworthiness | Yes | Yes |
| For our affiliates’ everyday business purposes — information about your transactions and experiences | Yes | No |
| For our affiliates’ everyday business purposes — information about your creditworthiness | No | We don’t share |
| For our investment management affiliates to market to you | Yes | Yes |
| For our affiliates to market to you | No | We don’t share |
| For nonaffiliates to market to you | No | We don’t share |
| To
limit our sharing |
Call toll-free 1-800-368-2745 or email: CRMPrivacy@calvert.comPlease note:If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing. |
| Questions? | Call toll-free 1-800-368-2745 or email: CRMPrivacy@calvert.com |
36
Calvert Funds
| Privacy Notice — continued | April 2021 |
Page 2
| Who we are | |
| Who is providing this notice? | Eaton Vance Management, Eaton Vance Distributors, Inc., Eaton Vance Trust Company, Eaton Vance Management (International) Limited, Eaton Vance Advisers International Ltd., Eaton Vance Global Advisors Limited, Eaton Vance Management’s Real Estate Investment Group, Boston Management and Research, Calvert Research and Management, Eaton Vance and Calvert Fund Families and our investment advisory affiliates (“Eaton Vance”) (see Investment Management Affiliates definition below) |
| What we do | |
| How
does Eaton Vance protect my personal information? |
To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information. |
| How
does Eaton Vance collect my personal information? |
We
collect your personal information, for example, when you■ open an account or make deposits or withdrawals from your
account ■ buy securities from us or make a wire transfer ■ give us your contact informationWe also collect your personal information from others, such as credit bureaus, affiliates, or other companies. |
| Why can’t I limit all sharing? | Federal
law gives you the right to limit only■ sharing for affiliates’ everyday business purposes — information
about your creditworthiness ■ affiliates from using your information to market to you ■ sharing for nonaffiliates to market to youState laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law. |
| Definitions | |
| Investment
Management Affiliates |
Eaton Vance Investment Management Affiliates include registered investment advisers, registered broker- dealers, and registered and unregistered funds. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co. |
| Affiliates | Companies related by common ownership or control. They can be financial and nonfinancial companies.■ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co. |
| Nonaffiliates | Companies not related by common ownership or control. They can be financial and nonfinancial companies.■ Eaton Vance does not share with nonaffiliates so they can market to you. |
| Joint marketing | A formal agreement between nonaffiliated financial companies that together market financial products or services to you.■ Eaton Vance doesn’t jointly market. |
| Other important information | |
| Vermont: Except as permitted by law, we will not share personal information we collect about Vermont residents with Nonaffiliates unless you provide us with your written consent to share such information.California: Except as permitted by law, we will not share personal information we collect about California residents with Nonaffiliates and we will limit sharing such personal information with our Affiliates to comply with California privacy laws that apply to us. | |
37
Calvert Funds
IMPORTANT NOTICES
Delivery of Shareholder Documents. The Securities and Exchange Commission (SEC) permits funds to deliver only one copy of shareholder documents, including prospectuses, proxy statements and shareholder reports, to fund investors with
multiple accounts at the same residential or post office box address. This practice is often called “householding” and it helps eliminate duplicate mailings to shareholders. Calvert funds, or your financial intermediary, may household the mailing of your documents indefinitely unless you instruct Calvert funds, or your financial intermediary, otherwise. If you would prefer that your Calvert fund documents not be householded, please contact Calvert funds at 1-800-368-2745, or contact your financial intermediary. Your instructions that householding not
apply to delivery of your Calvert fund documents will typically be effective within 30 days of receipt by Calvert funds or your financial intermediary. Separate statements will be generated for each separate account and will be householded as
described above.
Portfolio Holdings. Each Calvert fund files a schedule of portfolio holdings on Part F to Form N-PORT with the SEC. Certain information filed on Form N-PORT may be viewed on the Calvert website at www.calvert.com, by calling
Calvert at 1-800-368-2745 or in the EDGAR database on the SEC’s website at www.sec.gov.
Proxy Voting. The Proxy Voting Guidelines that each Calvert fund uses to determine how to vote proxies relating to portfolio securities is provided as an Appendix to the fund’s Statement of Additional Information.
The Statement of Additional Information can be obtained free of charge by calling the Calvert funds at 1-800-368-2745, by visiting the Calvert funds’ website at www.calvert.com or visiting the SEC’s website at www.sec.gov. Information
regarding how a Calvert fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available by calling Calvert funds, by visiting the Calvert funds’ website at www.calvert.com or by visiting
the SEC’s website at www.sec.gov.
38
* FINRA
BrokerCheck. Investors may check the background of their Investment Professional by contacting the Financial Industry Regulatory Authority (FINRA). FINRA BrokerCheck is a free tool to help investors check the professional background of
current and former FINRA-registered securities firms and brokers. FINRA BrokerCheck is available by calling 1-800-289-9999 and at www.FINRA.org. The FINRA BrokerCheck brochure describing this program is available to investors at www.FINRA.org.
Item 2. Code of Ethics
The registrant has adopted a code of ethics applicable to its Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer. The registrant undertakes to provide a copy of such code of ethics to any person upon request, without charge, by calling 1-800-368-2745. The registrant has not amended the code of ethics as described in Form N-CSR during the period covered by this report. The registrant has not granted any waiver, including an implicit waiver, from a provision of the code of ethics as described in Form N-CSR during the period covered by this report.
Item 3. Audit Committee Financial Expert
The registrant’s Board of Directors has determined that Miles D. Harper III, an “independent” Director serving on the registrant’s audit committee, is an “audit committee financial expert,” as defined in Item 3 of Form N-CSR. Under applicable securities laws, a person who is determined to be an audit committee financial expert will not be deemed an “expert” for any purpose, including without limitation for the purposes of Section 11 of
the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities that are greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and Board of Directors in the absence of such designation or identification.
Item 4. Principal Accountant Fees and Services
(a) –(d)
The following table presents the aggregate fees billed to the registrant for the registrant’s fiscal years ended September 30, 2020 and September 30, 2021 by its principal accountant for professional services rendered for the audit of the registrant’s annual financial statements and fees billed for other services rendered by its principal accountant during such periods.
| Fiscal Years Ended |
9/30/20 | %* | 9/30/21 | %* | ||||||||||||
| Audit Fees |
$ | 93,275 | 0 | % | $ | 92,000 | 0 | % | ||||||||
| Audit-Related Fees(1) |
$ | 0 | 0 | % | $ | 0 | 0 | % | ||||||||
| Tax Fees(2) |
$ | 21,635 | 0 | % | $ | 19,275 | 0 | % | ||||||||
| All Other Fees(3) |
$ | 0 | 0 | % | $ | 0 | 0 | % | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total |
$ | 114,910 | 0 | % | $ | 111,275 | 0 | % | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| * | Percentage of fees approved by the Audit Committee pursuant to (c )(7)(i)(C ) of Rule 2-01 of Reg. S-X (statutory de minimis waiver of Committee’s requirement to pre-approve). |
| (1) | Audit-related fees consist of the aggregate fees billed for assurance and related services that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under the category of audit fees. |
| (2) | Tax fees consist of the aggregate fees billed for professional services rendered by the principal accountant relating to tax compliance, tax advice, and tax planning and specifically include fees for tax return preparation and other related tax compliance/planning matters. |
| (3) | All other fees consist of the aggregate fees billed for products and services provided by the principal accountant other than audit, audit-related, and tax services. |
(e) The Audit Committee is required to pre-approve all audit and non-audit services provided to the registrant by the auditors, and to the registrant’s investment adviser, and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant. In determining whether to pre-approve non-audit services, the Audit Committee considers whether the services are consistent with maintaining the independence of the auditors. The Committee may delegate its authority to pre-approve certain matters to one or more of its members. In this regard, the Committee has delegated authority jointly to the Audit Committee Chair together with another Committee member with respect to non-audit services not exceeding $25,000 in each instance. In addition, the Committee has pre-approved the retention of the auditors to provide tax-related services related to the tax treatment and tax accounting of newly acquired securities, upon request by the investment adviser in each instance.
(f) Not applicable.
(g) Aggregate non-audit fees billed by the registrant’s accountant for services rendered to the registrant, and rendered to the registrant’s investment adviser, and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant:
| Fiscal Year ended 9/30/20 | Fiscal Year ended 9/30/21 | |||||
| $ | %* | $ | %* | |||
| $21,635 | 0% | $19,275 | 0% | |||
| * | Percentage of fees approved by the Audit Committee pursuant to (c)(7)(i)(C) of Rule 2-01 of Reg. S-X (statutory de minimis waiver of Committee’s requirement to pre-approve). |
(h) The registrant’s audit committee has considered whether the provision by the registrant’s principal accountant of non-audit services to the registrant’s investment adviser and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant that were not pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X is compatible with maintaining the principal accountant’s independence.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Schedule of Investments
Please see schedule of investments contained in the Report to Stockholders included under Item 1 of this Form N-CSR.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders
No material changes.
Item 11. Controls and Procedures
(a) The registrant’s principal executive and principal financial officers have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 Act, as amended (the “1940 Act”) are effective, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 (“Exchange Act”), as of a date within 90 days of the filing date of this report.
(b) There was no change in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies
Not applicable.
Item 13. Exhibits
| (a)(1) | Registrant’s Code of Ethics – Not applicable (please see Item 2). | |
| (a)(2)(i) | Treasurer’s Section 302 certification. | |
| (a)(2)(ii) | President’s Section 302 certification. | |
| (a)(3) | Not applicable. | |
| (a)(4) | Change in Independent Accountant. | |
| (b) | Combined Section 906 certification. | |
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
CALVERT IMPACT FUND, INC.
| By: | /s/ John H. Streur | |
| John H. Streur | ||
| President |
Date: November 22, 2021
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| By: | /s/ James F. Kirchner | |
| James F. Kirchner | ||
| Treasurer |
Date: November 22, 2021
| By: | /s/ John H. Streur | |
| John H. Streur | ||
| President |
Date: November 22, 2021