Past Performance Can Be Guide to Future

Calvert portfolio manager Greg Habeeb has achieved healthy results by following an aggressive style. Searching for undervalued bonds, Habeeb sometimes holds below-investment grade bonds. The strategy usually pays dividends, but last year junk bonds collapsed in the market downturn. Habeeb had another weak showing in 2000, a year when junk bonds fell and the fund lagged competitors by 5 points.

Because Calvert periodically suffers bad patches, it may not be suitable for investors who will need to spend their money in a year or two. But the record demonstrates that the fund delivers the goods over the long term. Patient investors can buy and hold, expecting that this aggressive fund will probably outdo most competitors.

Other aggressive intermediate funds with strong long-term records are Metro West Total Return(MWTRX Quote) and Loomis Sayles Investment Grade(LIGRX Quote).