logo January 2008   
 
Calvert Foundation's eNewsletter
NEWSWORTHY
Washington Post recognizes "Housing's Helping Hands"

In 2007, Calvert Foundation's loan portfolio for affordable U.S. housing grew by 15 percent over 2006, with over $17 million lent out to organizations such as Manna, AHC and Habitat for Humanity D.C. The Washington Post covered the work of Calvert Foundation and many of the groups we support in the DC area that are working to get families into homes and keep them there - through responsible lending, counseling and educational programs.

Art Stevens, Relationship Manager for Calvert Foundation, quoted Calvert Foundation's track record of investor protection. An investment in affordable housing through the organizations in Calvert Foundation's portfolio is still a good bet for investors. "No investor has ever lost capital," Stevens said. "And we intend to maintain that record."

> Read the full article on Washington Post's website
> Learn more about our social impact and affordable housing


Investment News: "Community Investment Goes Mainstream"

investment newsIn a great display of publicity for the community investment industry, popular financial publication Investment News featured an article earlier this month about the growth of community investment. Calvert Foundation is featured in the article, along with several of our friends and partners, including portfolio partner ShoreBank, the Social Investment Forum, and financial planners Andy Loving and Lisa Kirchenbauer. Journalist Deborah Nason writes:

"Long popular within the community investment industry, the Calvert Foundation's Calvert Community Investment Note, with $125 million in assets, reached a milestone in 2005 when it became part of many brokerage platforms."

> Read the full article at investmentnews.com
> Learn more about investing in communities

PORTFOLIO NEWS
Calvert Foundation Portfolio Groups Win Wachovia's "NEXT" Award

In a year of record-breaking lending, Calvert Foundation disbursed $30 million in new investments, bringing our total portfolio to $125 million. We are proud of the groups in our portfolio, which we select based on a careful review of their effectiveness and potential for making a positive impact on underserved communities.

Two of our portfolio partners were recently selected as recipients of the Wachovia “NEXT” Award for Opportunity Finance, created in partnership with The John D. and Catherine T. MacArthur Foundation. We would like to extend our congratulations to Accion Texas in San Antonio, TX and the Latino Community Credit Union in Durham, NC for this honor.

"The two winning organizations embody the creativity and innovation of the entire CDFI field," said Jonathan Fanton, president of the MacArthur Foundation. "They use capital, business acumen, and community-oriented solutions to bring greater economic security and opportunity to people of modest means." The Latino Community Credit Union (LCCU) received a $5.5 million prize, and ACCION Texas received $2.75 million. These awards will allow these two well-deserving groups to expand their respective financial institutions to the next level of growth, and will help bring the entire industry to scale along with them.

> Read more about the Wachovia "Next" Award


ShoreBank Leader and Calvert Foundation Board Member
recognized as one of "America's Best Leaders"

mary houghtonMary Houghton (pictured right) and Ron Grzywinski, both founders of ShoreBank, were recognized by U.S. News and World Report as two of "America's Best Leaders." They are in good company too. In total, 16 people were recognized, including Nancy Pelosi, Arnold Schwarzenegger and Michael J. Fox. These leaders were selected based on their ability to set direction, achieve results and cultivate a culture of growth. We would like to congratulate Ms. Houghton, who also serves on our Board of Directors, as well ShoreBank, one of our longest standing portfolio organizations. Thank you for being a leader!

> See Mary Houghton and Ron Grzywinski's Award Profile

SPOTLIGHT ON
Three Years After the Tsunami, TLC Foundation Inspires Hope and
New Beginnings Through Scholarship Program

When Dr. Patrick Mendis saw his country destroyed by the tsunami three years ago, he knew he had to take action. Though now an accomplished American educator, author and diplomat, Dr. Mendis grew up in a poor rural area of Sri Lanka, working with water buffaloes in a three-acre rice field.

Dr. Mendis was born in the Sri Lankan medieval capital of Polonnaruwa, where he quickly became a rising star. He received the UNESCO Award in a high school public speaking competition sponsored by the United Nations Association of Sri Lanka and, at the age of 18, won an AFS scholarship to attend an American high school in Minnesota. After graduating, he returned to the University of Sri Jayewardenepura, where he later endowed two scholarships in leadership and management studies in 1993. Mendis went on to receive his graduate education at the University of Minnesota’s Hubert H. Humphrey Institute of Public Affairs and Harvard University’s John F. Kennedy School of Government.

Drs. Mendis & AriThe December 26, 2004 tsunami took more than 250,000 lives in 11 countries, with Sri Lanka being among the worst hit. Studies estimate that the tsunami caused over $1 billion in damages to Sri Lanka, including 88,500 homes damaged (of which more than 50,000 were completely destroyed), 24,000 boats gone (about 70% of the fishing fleet), and 11,000 businesses destroyed. Power and water supply were also lost.

To help his friends and neighbors back home after the tsunami, Dr. Mendis established a Calvert Giving Fund called the Tsunami Leaders Caring (TLC) Foundation. Through this fund, he created a scholarship program called the “Leader-2-Leader Program,” which connects seniors to scholarship recipients for mentoring and guidance. Dr. Mendis also established a Peace Prize and a Microloan Program.

Dr. Mendis raised money for the TLC Foundation through the sale of his book, “Glocalization,” a collection of original essays that began as a travelogue he wrote while serving as a visiting professor of economics and public policy at the University of Pittsburgh’s Semester at Sea program. The book, Dr. Mendis says, was published for the dual purpose of raising funds for tsunami recovery and bringing more awareness to the work of Sarvodaya, a development and humanitarian movement led by Dr. A. T. Ariyaratne ("Dr. Ari"), considered by many to be the “Gandhi of Sri Lanka.” Dr. Mendis volunteered for Sarvodaya’s development projects beginning when he was 12, and this experience left an indelible mark on his life’s work. “I am very grateful to him and his extraordinary family, who consider me a part of their own family,” he says. Dr. Ari wrote the afterward in Dr. Mendis's book.

Sandun Sammatha, who was left an orphan by the tsunami, was the first to receive a scholarship from the TLC Foundation. He now works as an office assistant at the Sarvodaya Nutrition Centre. “I want to follow the Gandhian philosophy at Sarvodaya and am very thankful,” he says. 

ASK SHARI
Executive Director Shari Berenbach
How will a potential recession affect my Community Investment Note?

During the investment cycle there is always a period where investors begin to shift from focusing on the return on their principal, to worrying about the return of their principal. Fear overtakes greed as the economy and headlines sour, and we see interest rates fall. The falling rates result both from central bank action to stimulate the economy and investor flight to fixed income to weather the storm. These periods are part of the normal economic cycle, but never fail to unsettle the public. 

We find it helpful during these periods to go back to the basics. This is a great time to have a conversation about long-term goals and risk with your financial advisor. Make sure that your expectations have a solid grounding in reality and that your portfolio matches your needs as well as your stomach. 

The Community Investment Note can be a great fixed income alternative during these more difficult markets. The interest rate we offer does not fluctuate based on the markets, but on the underlying needs of our borrowers and the financial needs of our investors. The very conservative nature of the Notes shines during these difficult periods as investors look toward security and predictability rather than capital gains. This is also a great time to review your underlying beliefs about money – to see your investments as a tool perhaps, and not simply a fluctuating balance on a statement. Your money has the power to make a positive change in underserved communities, which is even more powerful during a recession since difficult economic times hit underserved communities the hardest. 

We see more demand for affordable capital during hard economic times, when credit is harder to find. Housing, jobs, daycare, education, and all the basics of a sustainable life are under pressure. You can help reduce the pressure on those most in need, while taking some of the pressure off your own portfolio. That’s what we call a win-win. 

Doesn’t that feel better than the latest earnings headline?

> Ask Shari a question.

 


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Calvert Social Investment Foundation, a 501(c)(3) nonprofit, offers the Community Investment Note, a 1- to 10-year note earning up to 3% interest. The Note is subject to certain risks, is not a mutual fund, is not insured, and should not be confused with any Calvert Group sponsored investment product. This eNewsletter is neither an offer to sell nor a solicitation of an offer to buy these securities the offering is made only by the prospectus, which should be read before investing.