Calvert Variable Products ( VP ) Portfolios PROSPECTUS April 30, 2013 Calvert VP SRI Portfolios Calvert Signature Variable Strategies Calvert VP SRI Balanced Portfolio Calvert VP SRI Equity Portfolio Calvert VP SRI Mid Cap Growth Portfolio Calvert SAGE TM Variable Strategies Calvert VP SRI Large Cap Value Portfolio These securities have not been approved or disapproved by the Securities and Exchange Commission ( SEC ) or any State Securities Commission, and neither the SEC nor any State Securities Commission has determined that this Prospectus is accurate or adequate. Any representation to the contrary is a criminal offense.
Calvert VP Portfolios Prospectus Calvert VP SRI Portfolios April 30, 2013 TABLE OF CONTENTS Page PROSPECTUS SUPPLEMENTS (IF ANY) (This section reflects any supplemental information about the Fund since the date of this Prospectus.) PORTFOLIO SUMMARIES (This section summarizes Portfolio fees, investment 1 strategies, risks, past performance, and purchase and sale procedures.) Calvert Signature Variable Strategies Calvert VP SRI Balanced Portfolio 1 Calvert VP SRI Equity Portfolio 5 Calvert VP SRI Mid Cap Growth Portfolio 8 Calvert SAGE Variable Strategies Calvert VP SRI Large Cap Value Portfolio 11 MORE INFORMATION ON FEES AND EXPENSES (This section provides details on Portfolio fees and expenses.) 14 MORE INFORMATION ON INVESTMENT STRATEGIES AND RISKS (This section provides details on Portfolio investment strategies and risks.) 15 Portfolio Holdings (This section provides details on Portfolio holdings.) 19 ABOUT SUSTAINABLE AND SOCIALLY RESPONSIBLE INVESTING (This section describes the sustainable and socially 20 responsible investment criteria of the Calvert Signature and Calvert SAGE Variable Strategies Portfolios.) Calvert Signature Variable Strategies Investment Selection Process 20 Sustainable and Socially Responsible Investment Criteria 20 Shareholder Advocacy and Corporate Responsibility 22 Calvert SAGE Variable Strategies Investment Selection Process 22 Sustainable and Responsible Investment 23 SAGE Enhanced Engagement Strategy 23 Special Investment Program 23 High Social Impact Investments 23 MANAGEMENT OF PORTFOLIO INVESTMENTS (This section provides details on Portfolio investment 24 managers.) About Calvert 24 More Information about the Advisor, Subadvisors and Portfolio Managers 24 Advisory Fees 26
INVESTOR INFORMATION (This section provides details on purchase and redemption 26 of Portfolio shares, how shares are valued, and information on dividends, distributions and taxes.) General Information About the Portfolios 26 Purchase, Exchange and Redemption of Shares 27 How Shares are Priced 27 Market Timing Policy 28 Dividends and Distributions 29 Page FINANCIAL HIGHLIGHTS (This section provides selected information from the 29 financial statements of the Portfolios.) Calvert VP SRI Balanced Portfolio 30 Calvert VP SRI Equity Portfolio 31 Calvert VP SRI Mid Cap Growth Portfolio 32 Calvert VP SRI Large Cap Value Portfolio 33
PORTFOLIO SUMMARY Calvert Signature Variable Strategies CALVERT VP SRI BALANCED PORTFOLIO INVESTMENT OBJECTIVE The Portfolio seeks to achieve a competitive total return through an actively managed portfolio of stocks, bonds, and money market instruments which offer income and capital growth opportunity and which satisfy the investment criteria, including financial, sustainability and social responsibility factors. This objective may be changed by the Portfolio s Board of Directors without shareholder approval. FEES AND EXPENSES OF THE PORTFOLIO This table describes the fees and expenses that you may pay if you invest in shares of the Portfolio. The table and the following example do not reflect fees and charges imposed under the variable annuity contracts and life insurance policies (each a Policy ) through which an investment may be made. If those fees and charges were included, costs would be higher. Please consult the prospectus for your Policy for information regarding those fees and charges. Shareholder Fees (fees paid directly from your investment) Maximum sales charge (load) on purchases None Maximum deferred sales charge (load) None Annual Fund Operating Expenses (expenses that you pay each year as a % of the value of your investment) Management fees 0.70% Other expenses 0.20% Total annual fund operating expenses 0.90% Example This example is intended to help you compare the cost of investing in the Portfolio with the cost of investing in other mutual funds. The example assumes that: you invest $10,000 in the Portfolio for the time periods indicated; your investment has a 5% return each year; and the Portfolio s operating expenses remain the same. Although your actual costs may be higher or lower, under these assumptions your costs would be: 1 Year 3 Years 5 Years 10 Years $92 $287 $498 $1,108 Portfolio Turnover The Portfolio pays transaction costs, such as commissions, when it buys and sells securities ( turns over its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in annual fund operating expenses or in the Example, affect the Portfolio s performance. During the most recent fiscal year, the Portfolio s portfolio turnover rate was 150% of its portfolio s average value. INVESTMENTS, RISKS AND PERFORMANCE Principal Investment Strategies The Portfolio typically invests about 60% of its net assets in stocks and 40% in bonds or other fixed-income investments. Stock investments are primarily common stock in large-cap companies. Fixed-income investments are primarily a wide variety of investment grade debt securities, such as corporate debt securities, mortgage-backed securities (including commercial mortgage-backed securities and collateralized mortgage obligations ( CMOs )) and other asset-backed securities ( ABS ). The Portfolio invests in debt and mortgage-backed securities issued by government-sponsored enterprises ( GSEs ) such as the Federal National Mortgage Association ( FNMA ) and the Federal Home Loan Mortgage Corporation ( FHLMC ). The Portfolio may also invest in repurchase agreements. An investment grade debt security is rated BBB- or higher by a nationally recognized statistical rating organization ( NRSRO ), or is an unrated bond determined by the Advisor to be of comparable credit quality. The Portfolio may also invest in unrated debt securities. The Portfolio is non-diversified, which means it may invest a greater percentage of its assets in a particular issuer than a diversified fund.. The Portfolio invests in a combination of stocks, bonds and money market instruments in an attempt to provide a complete investment portfolio in a single product. The Advisor monitors the Portfolio s allocation and may rebalance or reallocate the Portfolio s assets based on its view of economic and market factors and events. The equity portion of the Portfolio is primarily a large cap core U.S. domestic portfolio, although the Portfolio may also invest in foreign stocks and mid-cap stocks. The equity portion of the Portfolio seeks companies that have the potential to outperform the market through exceptional growth and/or valuation improvement. The fixed-income portion of the Portfolio reflects an active trading strategy, seeking total return. CALVERT VP PORTFOLIOS PROSPECTUS 1
The Portfolio uses a hedging technique that includes the purchase and sale of U.S. Treasury securities and related futures contracts to manage the duration of the Portfolio. The Portfolio may also use futures contracts as a substitute for direct investment in a particular asset class, in order to facilitate the periodic rebalancing of the Portfolio to maintain its target asset allocation, to make tactical asset allocations and to assist in managing cash. The Subadvisor selects the equity investments, while the Advisor manages the fixed-income assets and determines the overall asset class mix for the Portfolio depending upon its view of market conditions and economic outlook. Sustainable and Socially Responsible Investing. The Portfolio seeks to invest in companies and other enterprises that demonstrate positive environmental, social and governance performance as they address corporate responsibility and sustainability challenges. Calvert believes that there are long-term benefits in an investment philosophy that attaches material weight to the environment, workplace relations, human rights, Indigenous Peoples rights, community relations, product safety and impact, and corporate governance and business ethics. Calvert also believes that managing risks and opportunities related to these issues can contribute positively to company performance as well as to investment performance over time. The Portfolio has sustainable and socially responsible investment criteria that reflect specific types of companies in which the Portfolio seeks to invest and seeks to avoid investing. Investments are first selected for financial soundness and then evaluated according to the Portfolio s sustainable and socially responsible investment criteria. Investments must be consistent with the Portfolio s current investment criteria, including financial, sustainability and social responsibility factors, the application of which is in the economic interest of the Portfolio and its shareholders. Principal Risks You could lose money on your investment in the Portfolio, or the Portfolio could underperform, because of the risks described below. An investment in the Portfolio is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Non-diversification Risk. Because the Portfolio may invest a greater percentage of its assets in a particular issuer than a diversified fund, the gains or losses on a single stock may have greater impact on the Portfolio than a diversified fund. Management Risk. Individual investments of the Portfolio may not perform as expected, and the portfolio management practices may not achieve the desired result. There is a risk that the Advisor may allocate assets to an asset class that underperforms other asset classes. Stock Market Risk. The market prices of stocks held by the Portfolio may fall. Common Stock Risk. Although common stocks have a history of long-term growth in value, their prices fluctuate based on changes in a company s financial condition, on overall market and economic conditions, and on investors perception of a company s well-being. Large-Cap Company Risk. Large-cap companies may be unable to respond quickly to new competitive challenges such as changes in technology, and also may not be able to attain the high growth rate of successful smaller companies, especially during extended periods of economic expansion. Mid-Cap Company Risk. Prices of mid-cap stocks can be more volatile than those of larger, more established companies. Midcap companies are more likely to have more limited product lines, fewer capital resources and less depth of management than larger companies. Foreign Securities Risk. Investing in foreign securities involves additional risks relating to political, social, and economic developments abroad. Other risks result from differences between regulations that apply to U.S. and foreign issuers and markets, and the potential for foreign markets to be less liquid and more volatile than U.S. markets. Foreign Currency Risk. Securities that trade or are denominated in currencies other than the U.S. dollar may be adversely affected by fluctuations in currency exchange rates. When the U.S. dollar strengthens relative to a foreign currency, the U.S. dollar value of an investment denominated in that currency will typically fall. Bond Market Risk. The market prices of bonds held by the Portfolio may fall. Interest Rate Risk. A change in interest rates may adversely affect the value of fixed-income securities. When interest rates rise, the value of fixed-income securities will generally fall. Longer-term securities are subject to greater interest rate risk. Credit Risk. The credit quality of fixed-income securities may deteriorate, which could lead to default or bankruptcy of the issuer where the issuer becomes unable to pay its obligations when due. Mortgage-Backed and Asset-Backed Securities Risk. The value of investments in mortgage-backed and asset-backed securities is subject to interest rate risk and credit risk. These securities are also subject to the risk that borrowers will prepay the principal on their loans more quickly than expected (prepayment risk) or more slowly than expected (extension risk), which will affect the yield, average life and price of the securities. In addition, faster than expected prepayments may cause the Portfolio to invest the prepaid principal in lower yielding securities and slower than expected prepayments may reduce the potential for the Portfolio to invest in higher yielding securities. CALVERT VP PORTFOLIOS PROSPECTUS 2
Mortgage-Backed Security Risk (Government-Sponsored Enterprises). Debt and mortgage-backed securities issued by GSEs such as FNMA and FHLMC are neither insured nor guaranteed by the U.S. Treasury and are not backed by the full faith and credit of the U.S. government. Such securities are only supported by the credit of the applicable GSE. The U.S. government has provided financial support to FNMA and FHLMC, but there can be no assurance that it will support these or other GSEs in the future. Collateralized Mortgage Obligation and Structured Asset-Backed Securities Risk. A CMO is a multiclass bond that is backed by a pool of mortgage loans or mortgage-backed securities. A structured ABS is a multiclass bond that is typically backed by a pool of auto loans, credit card receivables, home equity loans or student loans. A CMO or structured ABS is subject to interest rate risk, credit risk, prepayment risk and extension risk. In addition, if the Portfolio holds a class of a CMO or a structured ABS that is subordinated to other classes backed by the same pool of collateral, the likelihood that the Portfolio will receive payments of principal may be substantially limited. Unrated Security Risk. Unrated securities may be less liquid than rated securities determined to be of comparable quality. The Portfolio s purchase of unrated securities depends on the Advisor s analysis of credit risk without the assessment of an NRSRO. Active Trading Strategy Risk. The fixed-income portion of the Portfolio employs an active style that seeks to position the Portfolio with securities that offer the greatest price appreciation while minimizing risk. This style can result in higher turnover (exceeding 100%) and may translate to higher transaction costs. Futures Contracts Risk. The value of a futures contract tends to increase and decrease in tandem with the value of the underlying instrument. The price of futures can be highly volatile; using them could lower total return, and the potential loss from futures can exceed the Portfolio s initial investment in such contracts. Repurchase Agreement Risk. A repurchase agreement exposes the fixed income portion of the Portfolio to the risk that the party that sells the security may default on its obligation to repurchase the security. The Portfolio may lose money because it cannot sell the security at the agreed-upon time and price or the security may lose value before it can be sold. Performance The following bar chart and table show the Portfolio s annual returns and its long-term performance, which give some indication of the risks of investing in the Portfolio. The bar chart shows how the performance has varied from year to year. The table compares the Portfolio s performance over time with that of a benchmark index, a composite index and a peer average. The table below shows the Balanced Composite Index (60% Russell 1000 Index; 40% Barclays U.S. Credit Index) because it is more consistent with the Portfolio s portfolio construction process and represents a more accurate reflection of the Portfolio s anticipated risk and return patterns. The Portfolio s past performance does not necessarily indicate how the Portfolio will perform in the future. For updated performance information, visit www.calvert.com. The returns shown do not reflect fees and charges imposed under the variable annuity contracts and life insurance policies through which an investment may be made. If those fees and charges were included, they would reduce these returns. 40% 30% 19.32% 20% 10% 0% -10% -20% -30% -40% Calendar Year Total Returns 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Quarter Total Ended Return Best Quarter (of periods shown) 9/30/09 12.29% Worst Quarter (of periods shown) 12/31/08-19.63% Average Annual Total Returns (as of 12/31/12) 1 year 5 years 10 years Calvert VP SRI Balanced Portfolio 10.51% 2.19% 5.45% Russell 1000 Index 16.42% 1.92% 7.52% Balanced Composite Index (reflects no deduction for fees or expenses) Lipper VA Mixed-Asset Target Allocation Growth Funds Average PORTFOLIO MANAGEMENT 13.60% 4.21% 7.01% 13.50% 1.93% 6.70% Investment Advisor. Calvert Investment Management, Inc. ( Calvert or the Advisor ) Allocation of Assets and Portfolio Managers: Portfolio Manager Name Natalie A. Trunow 8.26% 5.65% 8.77% 2.76% Title -31.32% Senior Vice President, Chief Investment Officer - Equities, Calvert 25.29% 12.10% 10.51% 4.56% Length of Time Managing Portfolio Since September 2008 CALVERT VP PORTFOLIOS PROSPECTUS 3
Fixed-Income Investments: Portfolio Manager Title Name Matthew Duch Vishal Khanduja, CFA Equity Investments: Vice President, Portfolio Manager, Calvert Portfolio Manager, Calvert Length of Time Managing Portfolio Since March 2013 Since March 2013 Investment Subadvisor. New Amsterdam Partners LLC ( New Amsterdam ) Portfolio Manager Name Michelle Clayman, CFA Nathaniel Paull, CFA Title Managing Partner, Chief Investment Officer, New Amsterdam Partner, Senior Portfolio Manager, New Amsterdam Length of Time Managing Portfolio Since June 2004 Since June 2004 Since the only shareholders of the Portfolio are the Insurance Companies, no discussion is included here regarding the federal income tax consequences at the Policy owner level. For information on the federal tax consequences to you as a purchaser of a Policy, see the prospectus for your Policy. PAYMENTS TO INSURANCE COMPANIES AND THEIR AFFILIATES The Portfolio is not sold directly to the general public but instead is offered as an underlying investment option for the Policies. The Portfolio and its related companies may make payments to a sponsoring Insurance Company (or its affiliates) for distribution and/or other services. These payments may be a factor that the Insurance Company considers in including the Portfolio as an underlying investment option in the Policy and may create a conflict of interest. The prospectus (or other offering document) for your Policy may contain additional information about these payments. PURCHASE AND REDEMPTION OF SHARES Shares of the Portfolio currently are sold only to participating insurance companies (the Insurance Companies ) for allocation to their separate accounts to fund benefits under Policies issued by the Insurance Companies. The Insurance Companies redeem shares of the Portfolio to make benefit and surrender payments under the terms of the Policies. Shares in the Portfolio are offered to the Insurance Companies, without sales charge, and redemptions are processed, on any day that the New York Stock Exchange is open. The share price is based on the Portfolio s net asset value, determined after an Insurance Company receives the premium payment or a surrender request in acceptable form. The Portfolio does not have minimum initial or subsequent investment requirements. A Policy owner s interest in the shares of the Portfolio is subject to the terms of the particular Policy described in the prospectus for that Policy. If you are considering purchasing a Policy, you should carefully review the prospectus for that Policy. TAX INFORMATION As a regulated investment company under the Internal Revenue Code, the Portfolio is not subject to federal income tax, or to federal excise tax, to the extent that it distributes its net investment income and realized capital gains to the separate accounts of the Insurance Companies. The Portfolio intends to distribute its net investment income and realized capital gains to the extent necessary to remain qualified as a regulated investment company. CALVERT VP PORTFOLIOS PROSPECTUS 4
PORTFOLIO SUMMARY Calvert Signature Variable Strategies CALVERT VP SRI EQUITY PORTFOLIO INVESTMENT OBJECTIVE The Portfolio seeks growth of capital through investment in stocks believed to offer opportunities for potential capital appreciation and which meet the Portfolio s investment criteria, including financial, sustainability and social responsibility factors. This objective may be changed by the Portfolio s Board of Directors without shareholder approval. FEES AND EXPENSES OF THE PORTFOLIO This table describes the fees and expenses that you may pay if you invest in shares of the Portfolio. The table and the following example do not reflect fees and charges imposed under the variable annuity contracts and life insurance policies (each a Policy ) through which an investment may be made. If those fees and charges were included, costs would be higher. Please consult the prospectus for your Policy for information regarding those fees and charges. Shareholder Fees (fees paid directly from your investment) Maximum sales charge (load) on purchases None Maximum deferred sales charge (load) None Annual Fund Operating Expenses (expenses that you pay each year as a % of the value of your investment) Management fees 0.70% Other expenses 0.53% Total annual fund operating expenses 1.23% Less fee waiver and/or expense reimbursement 1 (0.11%) Net expenses 1.12% 1 The investment advisor has agreed to contractually limit direct net annual fund operating expenses to 1.12% through April 30, 2014. Only the Board of Directors of the Portfolio may terminate the Portfolio s expense limitation before the contractual period expires, upon 60 days prior notice to shareholders. Example This example is intended to help you compare the cost of investing in the Portfolio with the cost of investing in other mutual funds. The example assumes that: you invest $10,000 in the Portfolio for the time periods indicated; your investment has a 5% return each year; the Portfolio s operating expenses remain the same; and any Calvert expense limitation is in effect for the period indicated in the fee table above. Although your actual costs may be higher or lower, under these assumptions your costs would be: Portfolio Turnover 1 Year 3 Years 5 Years 10 Years $114 $379 $665 $1,479 The Portfolio pays transaction costs, such as commissions, when it buys and sells securities ( turns over its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in annual fund operating expenses or in the Example, affect the Portfolio s performance. During the most recent fiscal year, the Portfolio s portfolio turnover rate was 30% of its portfolio s average value. INVESTMENTS, RISKS AND PERFORMANCE Principal Investment Strategies The Portfolio normally invests at least 80% of its net assets, including borrowings for investment purposes, in equity securities (common stock). The Portfolio will provide shareholders with at least 60 days notice before changing this 80% policy. The Portfolio invests primarily in common stocks of U.S. large-cap companies. The Portfolio defines large-cap companies as those whose market capitalization falls within the range of the Standard & Poor s ( S&P ) 500 Index. As of December 31, 2012, the market capitalization of the S&P 500 Index companies ranged from $1.63 billion to $500 billion with a weighted median level of $56.8 billion and a weighted average level of $106.1 billion. The Portfolio normally seeks to have a weighted average market capitalization of at least $20 billion. The Portfolio may also invest in mid-cap stocks and may invest up to 25% of its net assets in foreign stocks. The Subadvisor looks for established companies with a history of steady earnings growth. The Subadvisor selects companies based on its opinion that the company has the ability to sustain growth through high profitability and that the stock is favorably priced with respect to those growth expectations. Sustainable and Socially Responsible Investing. The Portfolio seeks to invest in companies and other enterprises that demonstrate positive environmental, social and governance performance as they address corporate responsibility and sustainability challenges. Calvert believes that there are long-term benefits in an investment philosophy that attaches material weight to the environment, workplace relations, human rights, Indigenous Peoples rights, community relations, product safety and impact, CALVERT VP PORTFOLIOS PROSPECTUS 5
and corporate governance and business ethics. Calvert also believes that managing risks and opportunities related to these issues can contribute positively to company performance as well as to investment performance over time. The Portfolio has sustainable and socially responsible investment criteria that reflect specific types of companies in which the Portfolio seeks to invest and seeks to avoid investing. Investments are first selected for financial soundness and then evaluated according to the Portfolio s sustainable and socially responsible investment criteria. Investments must be consistent with the Portfolio s current investment criteria, including financial, sustainability and social responsibility factors, the application of which is in the economic interest of the Portfolio and its shareholders. Principal Risks You could lose money on your investment in the Portfolio, or the Portfolio could underperform, because of the risks described below. An investment in the Portfolio is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Management Risk. Individual investments of the Portfolio may not perform as expected, and the portfolio management practices may not achieve the desired result. the potential for foreign markets to be less liquid and more volatile than U.S. markets. Foreign Currency Risk. Securities that trade or are denominated in currencies other than the U.S. dollar may be adversely affected by fluctuations in currency exchange rates. When the U.S. dollar strengthens relative to a foreign currency, the U.S. dollar value of an investment denominated in that currency will typically fall. Performance The following bar chart and table show the Portfolio s annual returns and its long-term performance, which give some indication of the risks of investing in the Portfolio. The bar chart shows how the performance has varied from year to year. The table compares the Portfolio s performance over time with that of a benchmark index and a peer average. The Portfolio s past performance does not necessarily indicate how the Portfolio will perform in the future. For updated performance information, visit www.calvert.com. The returns shown do not reflect fees and charges imposed under the variable annuity contracts and life insurance policies through which an investment may be made. If those fees and charges were included, they would reduce these returns. Stock Market Risk. The market prices of stocks held by the Portfolio may fall. Common Stock Risk. Although common stocks have a history of long-term growth in value, their prices fluctuate based on changes in a company s financial condition, on overall market and economic conditions, and on investors perception of a company s well-being. Calendar Year Total Returns 40% 34.26% 30% 22.18% 20% 17.26% 10.06% 9.99% 10% 7.16% 4.54% 15.95% Large-Cap Company Risk. Large-cap companies may be unable to respond quickly to new competitive challenges such as changes in technology, and also may not be able to attain the high growth rate of successful smaller companies, especially during extended periods of economic expansion. Mid-Cap Company Risk. Prices of mid-cap stocks can be more volatile than those of larger, more established companies. Midcap companies are more likely to have more limited product lines, fewer capital resources and less depth of management than larger companies. Growth Company Risk. Prices of growth company securities may fall more than the overall equity markets due to changing economic, political or market conditions or disappointing growth company earnings results. Growth stocks also generally lack the dividends of some value stocks that can cushion stock prices in a falling market. Foreign Securities Risk. Investing in foreign securities involves additional risks relating to political, social, and economic developments abroad. Other risks result from differences between regulations that apply to U.S. and foreign issuers and markets, and 0% -10% -20% -30% -40% -35.79% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Quarter Ended -1.34% Total Return Best Quarter (of periods shown) 6/30/09 18.41% Worst Quarter (of periods shown) 12/31/08-24.41% Average Annual Total Returns (as of 12/31/12) 1 year 5 years 10 years Calvert VP SRI Equity Portfolio 15.95% 2.95% 6.72% S&P 500 Index 16.00% 1.66% 7.10% (reflects no deduction for fees or expenses) Lipper VA Large-Cap Growth Funds Average 16.00% 1.45% 7.23% CALVERT VP PORTFOLIOS PROSPECTUS 6
PORTFOLIO MANAGEMENT Investment Advisor. Calvert Investment Management, Inc. ( Calvert or the Advisor ) Investment Subadvisor. Atlanta Capital Management Company, LLC ( Atlanta Capital ) Portfolio Manager Name Richard B. England, CFA Paul J. Marshall, CFA Title Managing Director - Equities and Principal, Atlanta Capital Vice President and Principal, Atlanta Capital Length of Time Managing Portfolio Since July 2006 Since March 2009 PAYMENTS TO INSURANCE COMPANIES AND THEIR AFFILIATES The Portfolio is not sold directly to the general public but instead is offered as an underlying investment option for the Policies. The Portfolio and its related companies may make payments to a sponsoring Insurance Company (or its affiliates) for distribution and/or other services. These payments may be a factor that the Insurance Company considers in including the Portfolio as an underlying investment option in the Policy and may create a conflict of interest. The prospectus (or other offering document) for your Policy may contain additional information about these payments. PURCHASE AND REDEMPTION OF SHARES Shares of the Portfolio currently are sold only to participating insurance companies (the Insurance Companies ) for allocation to their separate accounts to fund benefits under Policies issued by the Insurance Companies. The Insurance Companies redeem shares of the Portfolio to make benefit and surrender payments under the terms of the Policies. Shares in the Portfolio are offered to the Insurance Companies, without sales charge, and redemptions are processed, on any day that the New York Stock Exchange is open. The share price is based on the Portfolio s net asset value, determined after an Insurance Company receives the premium payment or a surrender request in acceptable form. The Portfolio does not have minimum initial or subsequent investment requirements. A Policy owner s interest in the shares of the Portfolio is subject to the terms of the particular Policy described in the prospectus for that Policy. If you are considering the purchase of a Policy, you should carefully review the prospectus for that Policy. TAX INFORMATION As a regulated investment company under the Internal Revenue Code, the Portfolio is not subject to federal income tax, or to federal excise tax, to the extent that it distributes its net investment income and realized capital gains to the separate accounts of the Insurance Companies. The Portfolio intends to distribute its net investment income and realized capital gains to the extent necessary to remain qualified as a regulated investment company. Since the only shareholders of the Portfolio are the Insurance Companies, no discussion is included here regarding the federal income tax consequences at the Policy owner level. For information concerning the federal tax consequences to you as a purchaser of a Policy, see the prospectus for your Policy. CALVERT VP PORTFOLIOS PROSPECTUS 7
PORTFOLIO SUMMARY Calvert Signature Variable Strategies CALVERT VP SRI MID CAP GROWTH PORTFOLIO INVESTMENT OBJECTIVE The Portfolio seeks to provide long-term capital appreciation by investing primarily in a portfolio of the equity securities of midsized companies that are undervalued but demonstrate a potential for growth and that meet the Portfolio s investment criteria, including financial, sustainability and social responsibility factors. This objective may be changed by the Portfolio s Board of Directors without shareholder approval. Portfolio Turnover The Portfolio pays transaction costs, such as commissions, when it buys and sells securities ( turns over its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in annual fund operating expenses or in the Example, affect the Portfolio s performance. During the most recent fiscal year, the Portfolio s portfolio turnover rate was 61% of its portfolio s average value. FEES AND EXPENSES OF THE PORTFOLIO This table describes the fees and expenses that you may pay if you invest in shares of the Portfolio. The table and the following example do not reflect fees and charges imposed under the variable annuity contracts and life insurance policies (each a Policy ) through which an investment may be made. If those fees and charges were included, costs would be higher. Please consult the prospectus for your Policy for information regarding those fees and charges. Shareholder Fees (fees paid directly from your investment) Maximum sales charge (load) on purchases None Maximum deferred sales charge (load) None Annual Fund Operating Expenses (expenses that you pay each year as a % of the value of your investment) Management fees 0.90% Other expenses 0.22% Total annual fund operating expenses 1.12% Example This example is intended to help you compare the cost of investing in the Portfolio with the cost of investing in other mutual funds. The example assumes that: you invest $10,000 in the Portfolio for the time periods indicated; your investment has a 5% return each year; and the Portfolio s operating expenses remain the same. Although your actual costs may be higher or lower, under these assumptions your costs would be: 1 Year 3 Years 5 Years 10 Years $114 $356 $617 $1,363 INVESTMENTS, RISKS AND PERFORMANCE Principal Investment Strategies The Portfolio normally invests at least 80% of its net assets, including borrowings for investment purposes, in the common stocks of mid-cap companies. The Portfolio will provide shareholders with at least 60 days notice before changing this 80% policy. The Portfolio currently defines mid-cap companies as those whose market capitalization falls within the range of the Russell Midcap Growth Index. As of December 31, 2012, the market capitalization of the Russell Midcap Growth Index companies ranged from $337 million to $21.2 billion with a weighted median level of $8.8 billion and a weighted average level of $9.3 billion. The Russell Midcap Growth Index is reconstituted annually. The Portfolio normally seeks to have a weighted average market capitalization between $2 billion and $12 billion. Stocks chosen for the Portfolio combine growth and value characteristics or offer the opportunity to buy growth at a reasonable price. The Portfolio may also invest up to 25% of its net assets in foreign securities. The Portfolio is non-diversified, which means it may invest a greater percentage of its assets in a particular issuer than a diversified fund. The Subadvisor favors companies which have an above market average prospective growth rate, but sell at below market average valuations. The Subadvisor evaluates each stock in terms of its growth potential, the return for risk free investments, and the risk and reward potential for the company to determine a reasonable price for the stock. Sustainable and Socially Responsible Investing. The Portfolio seeks to invest in companies and other enterprises that demonstrate positive environmental, social and governance performance as they address corporate responsibility and sustainability challenges. Calvert believes that there are long-term benefits in an investment philosophy that attaches material weight to the environment, workplace relations, human rights, Indigenous Peoples rights, community relations, product safety and impact, and corporate governance and business ethics. Calvert also believes that managing risks and opportunities related to these issues can contribute positively to company performance as well as to CALVERT VP PORTFOLIOS PROSPECTUS 8
investment performance over time. The Portfolio has sustainable and socially responsible investment criteria that reflect specific types of companies in which the Portfolio seeks to invest and seeks to avoid investing. Investments are first selected for financial soundness and then evaluated according to the Portfolio s sustainable and socially responsible investment criteria. Investments must be consistent with the Portfolio s current investment criteria, including financial, sustainability and social responsibility factors, the application of which is in the economic interest of the Portfolio and its shareholders. Principal Risks You could lose money on your investment in the Portfolio, or the Portfolio could underperform, because of the risks described below. An investment in the Portfolio is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Non-diversification Risk. Because the Portfolio may invest a greater percentage of its assets in a particular issuer than a diversified fund, the gains or losses on a single stock may have greater impact on the Portfolio than a diversified fund. Management Risk. Individual investments of the Portfolio may not perform as expected, and the portfolio management practices may not achieve the desired result. Stock Market Risk. The market prices of stocks held by the Portfolio may fall. Common Stock Risk. Although common stocks have a history of long-term growth in value, their prices fluctuate based on changes in a company s financial condition, on overall market and economic conditions, and on investors perception of a company s well-being. Mid-Cap Company Risk. Prices of mid-cap stocks can be more volatile than those of larger, more established companies. Midcap companies are more likely to have more limited product lines, fewer capital resources and less depth of management than larger companies. Growth Company Risk. Prices of growth company securities may fall more than the overall equity markets due to changing economic, political or market conditions or disappointing growth company earnings results. Growth stocks also generally lack the dividends of some value stocks that can cushion stock prices in a falling market. Valuation Risk. A stock judged to be undervalued by the Subadvisor may actually be appropriately priced, and it may not appreciate as anticipated. Foreign Securities Risk. Investing in foreign securities involves additional risks relating to political, social, and economic developments abroad. Other risks result from differences between regulations that apply to U.S. and foreign issuers and markets, and the potential for foreign markets to be less liquid and more volatile than U.S. markets. Foreign Currency Risk. Securities that trade or are denominated in currencies other than the U.S. dollar may be adversely affected by fluctuations in currency exchange rates. When the U.S. dollar strengthens relative to a foreign currency, the U.S. dollar value of an investment denominated in that currency will typically fall. Performance The following bar chart and table show the Portfolio s annual returns and its long-term performance, which give some indication of the risks of investing in the Portfolio. The bar chart shows how the performance has varied from year to year. The table compares the Portfolio s performance over time with that of a benchmark index and a peer average. The Portfolio s past performance does not necessarily indicate how the Portfolio will perform in the future. For updated performance information, visit www.calvert.com. The returns shown do not reflect fees and charges imposed under the variable annuity contracts and life insurance policies through which an investment may be made. If those fees and charges were included, they would reduce these returns. 40% 31.68% 30% 20% 10% 0% -10% -20% -30% -40% Calendar Year Total Returns 9.33% 6.88% 10.16% 0.42% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Quarter Total Ended Return Best Quarter (of periods shown) 12/31/10 17.55% Worst Quarter (of periods shown) 12/31/08-25.51% Average Annual Total Returns (as of 12/31/12) 1 year 5 years 10 years Calvert VP SRI Mid Cap Growth Portfolio 16.75% 5.43% 8.29% Russell Midcap Growth Index (reflects no deduction for fees or expenses) Lipper VA Mid-Cap Core Funds Average -37.19% 32.02% 31.47% 2.33% 16.75% 15.81% 3.23% 10.32% 16.07% 2.82% 8.96% CALVERT VP PORTFOLIOS PROSPECTUS 9
PORTFOLIO MANAGEMENT Investment Advisor. Calvert Investment Management, Inc. ( Calvert or the Advisor ) Investment Subadvisor. New Amsterdam Partners LLC ( New Amsterdam ) Portfolio Manager Name Michelle Clayman, CFA Nathaniel Paull, CFA Title Managing Partner, Chief Investment Officer, New Amsterdam Partner, Senior Portfolio Manager, New Amsterdam Length of Time Managing Portfolio Since September 2005 Since September 2005 PAYMENTS TO INSURANCE COMPANIES AND THEIR AFFILIATES The Portfolio is not sold directly to the general public but instead is offered as an underlying investment option for the Policies. The Portfolio and its related companies may make payments to a sponsoring Insurance Company (or its affiliates) for distribution and/or other services. These payments may be a factor that the Insurance Company considers in including the Portfolio as an underlying investment option in the Policy and may create a conflict of interest. The prospectus (or other offering document) for your Policy may contain additional information about these payments. PURCHASE AND REDEMPTION OF SHARES Shares of the Portfolio currently are sold only to participating insurance companies (the Insurance Companies ) for allocation to their separate accounts to fund benefits under Policies issued by the Insurance Companies. The Insurance Companies redeem shares of the Portfolio to make benefit and surrender payments under the terms of the Policies. Shares in the Portfolio are offered to the Insurance Companies, without sales charge, and redemptions are processed, on any day that the New York Stock Exchange is open. The share price is based on the Portfolio s net asset value, determined after an Insurance Company receives the premium payment or a surrender request in acceptable form. The Portfolio does not have minimum initial or subsequent investment requirements. A Policy owner s interest in the shares of the Portfolio is subject to the terms of the particular Policy that is described in the prospectus for that Policy. If you are considering the purchase of a Policy, you should carefully review the prospectus for that Policy. TAX INFORMATION As a regulated investment company under the Internal Revenue Code, the Portfolio is not subject to federal income tax, or to federal excise tax, to the extent that it distributes its net investment income and realized capital gains to the separate accounts of the Insurance Companies. The Portfolio intends to distribute its net investment income and realized capital gains to the extent necessary to remain qualified as a regulated investment company. Since the only shareholders of the Portfolio are the Insurance Companies, no discussion is included here regarding the federal income tax consequences at the Policy owner level. For information concerning the federal tax consequences to you as a purchaser of a Policy, see the prospectus for your Policy. CALVERT VP PORTFOLIOS PROSPECTUS 10
PORTFOLIO SUMMARY Calvert SAGE Variable Strategies CALVERT VP SRI LARGE CAP VALUE PORTFOLIO INVESTMENT OBJECTIVE The Portfolio seeks long-term capital appreciation through investment primarily in large-cap U.S. common stocks that are trading at prices below what are believed to be their intrinsic value, in accordance with the Portfolio s corporate responsibility standards and strategies. This objective may be changed by the Portfolio s Board of Directors without shareholder approval. FEES AND EXPENSES OF THE PORTFOLIO This table describes the fees and expenses that you may pay if you invest in shares of the Portfolio. The table and the following example do not reflect fees and charges imposed under the variable annuity contracts and life insurance policies (each a Policy ) through which an investment may be made. If those fees and charges were included, costs would be higher. Please consult the prospectus for your Policy for information regarding those fees and charges. Shareholder Fees (fees paid directly from your investment) Maximum sales charge (load) on purchases Maximum deferred sales charge (load) None None Annual Fund Operating Expenses (expenses that you pay each year as a % of the value of your investment) Management fees 0.74% Other expenses 0.11% Total annual fund operating expenses 0.85% Less fee waiver and/or expense reimbursement 1 (0.07%) Net expenses 0.78% 1 The investment advisor has agreed to contractually limit direct net annual fund operating expenses to 0.78% through April 30, 2014. Only the Board of Directors of the Portfolio may terminate the Portfolio s expense limitation before the contractual period expires, upon 60 days prior notice to shareholders. Example This example is intended to help you compare the cost of investing in the Portfolio with the cost of investing in other mutual funds. The example assumes that: you invest $10,000 in the Portfolio for the time periods indicated; your investment has a 5% return each year; the Portfolio s operating expenses remain the same; and any Calvert expense limitation is in effect for the period indicated in the fee table above. Although your actual costs may be higher or lower, under these assumptions your costs would be: Portfolio Turnover 1 Year 3 Years 5 Years 10 Years $80 $264 $465 $1,043 The Portfolio pays transaction costs, such as commissions, when it buys and sells securities ( turns over its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in annual fund operating expenses or in the Example, affect the Portfolio s performance. During the most recent fiscal year, the Portfolio s portfolio turnover rate was 51% of its portfolio s average value. INVESTMENTS, RISKS AND PERFORMANCE Principal Investment Strategies The Portfolio offers opportunities for long-term growth of capital through investments in large-cap company equity securities that the portfolio manager believes are undervalued. The Portfolio normally invests at least 80% of its assets, including borrowings for investment purposes, in the common stocks of large-cap companies. The Portfolio will provide shareholders with at least 60 days notice before changing this 80% policy. The Portfolio defines large-cap companies as those within the range of market capitalizations of the Russell 1000 Value Index. As of December 31, 2012, the market capitalization of the Russell 1000 Value Index companies ranged from $317 million to $395 billion with a weighted median level of $35 billion and a weighted average level of $88.9 billion. The Portfolio normally seeks to have a weighted average market capitalization of at least $10 billion. The Russell 1000 Value Index is reconstituted annually. The annual index reconstitution and the general nature of an index mean that the constitution of the Russell 1000 Value Index will vary due to market changes, which can also affect the market capitalization range. Changes to the constitution and market capitalization of the Russell 1000 Value Index will cause the Advisor s universe of stocks and range of market capitalizations to change accordingly. Although primarily investing in large cap U.S. companies, the Portfolio may also invest in mid-cap and small-cap companies. The Portfolio may not invest more than 25% of its net assets in foreign securities. CALVERT VP PORTFOLIOS PROSPECTUS 11
The Advisor seeks to identify common stocks of companies it believes are significantly undervalued compared to their perceived worth or prospects, historical valuations or the general market level of valuation. Value companies tend to have stock prices that are low relative to their earnings, dividends, assets or other financial measures. They may include companies which are temporarily out of favor with the market or which may have experienced adverse business developments but which have the potential for growth. In selecting securities for the Portfolio, the Advisor primarily uses a bottom-up approach focused on fundamental analysis of issuers in a number of different sectors and industries, in light of the issuers current financial condition and industry position, as well as market, economic, political and regulatory conditions. Factors considered in assessing a company s valuation and prospects may include analysis of earnings, assets, cash flows, allocation of capital, favorable supply/demand conditions for key products, development of new products or businesses, competitive position in the marketplace, and quality of management. Sustainable and Responsible Investing. The Portfolio seeks to invest in a wide range of companies and other enterprises that demonstrate varying degrees of commitment and progress toward addressing key corporate responsibility and sustainability challenges. The Portfolio may invest in companies which already demonstrate leadership on environmental, social and governance issues relevant to their industries, as well as in companies which have yet to make significant progress on such issues but have the potential to do so. Enhanced engagement will encourage selected companies in the portfolio to address issues where sufficient commitment is lacking, or reinforce progress that may be underway. The Portfolio has threshold responsibility standards with respect to tobacco, weapons and human rights, which it applies in determining whether a security qualifies as an investment for the Portfolio. Investments are first selected for financial soundness and then evaluated according to these sustainability and corporate responsibility standards. Investments must be consistent with the Portfolio s current financial criteria and threshold responsibility standards, the application of which is in the economic interest of the Portfolio and its shareholders. Principal Risks You could lose money on your investment in the Portfolio, or the Portfolio could underperform, because of the risks described below. An investment in the Portfolio is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Management Risk. Individual investments of the Portfolio may not perform as expected, and the portfolio management practices may not achieve the desired result. Common Stock Risk. Although common stocks have a history of long-term growth in value, their prices fluctuate based on changes in a company s financial condition, on overall market and economic conditions, and on investors perception of a company s well-being. Large-Cap Company Risk. Large-cap companies may be unable to respond quickly to new competitive challenges such as changes in technology, and also may not be able to attain the high growth rate of successful smaller companies, especially during extended periods of economic expansion. Small-Cap and Mid-Cap Company Risk. Prices of small-cap and mid-cap stocks can be more volatile than those of larger, more established companies. Small-cap and mid-cap companies are more likely to have more limited product lines, fewer capital resources and less depth of management than larger companies. Value Company Risk. Value stocks may perform differently from the market as a whole, which may not recognize a security s intrinsic value for a long time. The value-oriented investing approach may fall out of favor with investors from time to time, during which the Portfolio may underperform other funds using different investment approaches. Valuation Risk. A stock judged to be undervalued by the Advisor may actually be appropriately priced, and it may not appreciate as anticipated. Foreign Securities Risk. Investing in foreign securities involves additional risks relating to political, social, and economic developments abroad. Other risks result from differences between regulations that apply to U.S. and foreign issuers and markets, and the potential for foreign markets to be less liquid and more volatile than U.S. markets. Foreign Currency Risk. Securities that trade or are denominated in currencies other than the U.S. dollar may be adversely affected by fluctuations in currency exchange rates. When the U.S. dollar strengthens relative to a foreign currency, the U.S. dollar value of an investment denominated in that currency will typically fall. Performance The following bar chart and table show the Portfolio s annual returns and its long-term performance, which give some indication of the risks of investing in the Portfolio. The bar chart shows how the performance has varied from year to year. The table compares the Portfolio s performance over time with that of a benchmark index and a peer average. The Portfolio s past performance does not necessarily indicate how the Portfolio will perform in the future. For updated performance information, visit www.calvert.com. Stock Market Risk. The market prices of stocks held by the Portfolio may fall. CALVERT VP PORTFOLIOS PROSPECTUS 12