June 30, 1999
Semi-Annual
Report
Calvert First
Government Money Market Fund
<PAGE>
Table of Contents
President's Letter
1
Portfolio
Manager Remarks
2
Statement of
Net Assets
4
Statement of Operations
7
Statements of Changes in Net Assets
8
Notes to
Financial Statements
10
Financial Highlights
13
Shareholder Meeting Update
16
Year 2000 Update
17
<PAGE>
Dear Shareholders:
Here is your semi-annual report for the
six-month period ending June 30, 1999. For
the most current information regarding the
performance of your fund, please visit our
recently redesigned Web site at
www.calvertgroup.com.
In reviewing our recently redesigned Web
site, you will see that we now offer more
interactive information tools to help you
make the most informed investment decisions.
At www.calvertgroup.com you will find fund
performance, profiles and literature, as
well as a rich array of information on
socially responsible and tax free investing.
Our site also includes company profiles,
issues briefs and our award winning "Know
What You Own(R)" service.
Of special note, we have taken online
disclosure a step further this month by
publishing the entire portfolio holdings for
each of our equity funds. Calvert Group is
the first mutual fund family to provide a
complete listing of
holdings on a monthly basis.
Of course, knowing how a fund has performed
is as important as knowing the companies
that are in a Portfolio. I'm pleased to
report that a significant number of our
funds have received a three-star or better
Morningstar rating
for their performance over the past three
years. For performance over the
same time frame, two funds -- Calvert Income
Fund and Calvert Tax-Free Reserves Limited
Term Portfolio -- received Morningstar's
superlative five-star rating.1 More detail
about your fund's performance is included in
this report.
As always, we encourage investors to make
decisions based on your financial objectives
and tolerance for risk. You should routinely
review your asset allocation to be sure you
are positioned at a comfortable risk level.
Your financial professional can suggest
strategies that keep you on track to meet
long-term financial objectives without
exposing you to undue levels of risk.
We appreciate your investment in Calvert
Group funds and look forward to providing
competitive returns in the future.
Sincerely,
Barbara J. Krumsiek
President and CEO
July 20, 1999
1 A Morningstar five-star ranking indicates
that the fund is in the top 10% of all
investment companies in a category, a four
star ranking indicates that
the fund is in the next 22.5%, and a three-
star ranking is in the middle 35%.
<PAGE>
Laurie Webster is a member of the CAMCO
portfolio management team.
Calvert First Government Money Market Fund
seeks
to earn the highest
possible yield consistent with safety,
liquidity and preservation of capital.
Fund
Information
asset allocation
taxable
money market
NASDAQ symbol
FVRXX
CUSIP number
131557-10-8
Calvert First Government Money Market Fund
How did the Fund perform?
For the semi-annual period ending June 30,
1999, the Fund returned 2.04% (Class O)
versus 2.09% for the Lipper US Government
Money Market Funds Average.
How would you characterize the investment
climate over the past six months?
At the start of the year the economy was
growing at a fast pace, the stock market
continued to outperform all other markets,
and inflation appeared to remain low. The
bond markets meanwhile focused on the crisis
occurring in both Brazil and Japan. Treasury
paydowns were expected to keep yields on
bonds under control. The Fed, while
watchful, had no bias towards a rate
move at the time.
As the first quarter progressed however,
strong economic numbers combined with
rapidly rising Japanese rates pushed the
bond market higher. Concerns over Fed
tightening became clear as Chairman Alan
Greenspan began making comments suggesting a
tightening bias. The yield on the one-year
Treasury
bill increased 50 basis points. Expectations
of higher rates were built into the money
market curve as well and the curve
steepened.
By May, talk of more than one rate hike was
driving the markets higher.
While inflation and unemployment levels
remained low, consumer spending soared and
purchasing managers' surveys (for
manufacturing purchases) rose. Inflation
fears continued to plague the markets. The
question was no longer
if, but when and how many rate hikes would
be needed. One year treasury levels reached
over 5.00%.
In June, Greenspan announced a 25 basis
point rate hike (which was expected), and an
end to the tightening bias (which was
unexpected). Market participants interpreted
this as a sign that the Fed felt inflation
was still under control and that the
economic pace, while robust, was not
threatening. Yields on short-term
instruments plunged and remain uncertain at
this time.
What was your strategy during this period?
At the start of the first quarter the Fund
was structured in a neutral stance
with an average maturity slightly lower than
its peers. However, when rates started
moving higher in mid-February, we extended
our maturity over 25%
to take advantage of higher short-term
rates, thereby locking in higher yields for
the Fund. Anticipating the June Fed meeting,
maturities were shortened, and the Fund
<PAGE>
realized some gains. Moving into the second
half of the year, we remain watchful for any
signs of increasing rates and buying
opportunities.
What is your outlook?
Looking forward, we believe that the markets
will continue to watch for any signs of
inflation. Additional strength in any
economic numbers reported will have to be
weighed against possible global crisis and
continued paydown fundamentals in the
treasury market. Trading ranges should
remain tight for the near future, although
we expect to see rates rise sometime toward
the later half of the year. Accordingly, we
will maintain a neutral posture until a
clear breakout occurs in either direction.
July 20, 1999
Please remember, this discussion reflects
the views and opinions of Calvert Asset
Management Company at June 30, 1999, the end
of the reporting
period. Our strategy and the Fund's
portfolio composition may differ due to ever-
changing market and economic conditions.
While historical performance is no guarantee
of future results, it may give you a better
and more thorough understanding of our
investment decisions and management
philosophy.
Comparative Month-End Yields
Calvert IBC's
First Government Government
Money Market Money Market
Class O Averages
6.30.99 3.94%
4.12%
5.31.99 3.93%
4.12%
4.30.99 4.00%
4.14%
3.31.99 4.06%
4.17%
2.28.99 4.29%
4.16%
1.31.99 4.28%
4.21%
12.31.98 4.44%
4.28%
Total returns assume reinvestment of
dividends. Performance information
represents the value of an investment in
Class O shares. The value of an investment
in Class B, C, I or T shares would be
different. Past performance
is no guarantee of future results. Sources:
IBC's Money Fund Report, IBC Financial Data
Inc. and Lipper Analytical Services, Inc.
Portfolio
Statistics
weighted
average maturity
6.30.99 38 days
12.31.98 46 days
credit quality
distribution
as of 6.30.99
The Fund invests solely in debt obligations
issued or guaranteed by the
United States, its agencies or
instrumentalities, assignments of interest
in
such obligations and commitments to purchase
such obligations ("U.S. Government-backed
obligations"). The Fund may invest in U.S.
Government-backed obligations subject to
repurchase agreements with the recognized
securities dealers and banks.
Class O
average annual
total return
as of 6.30.99
1 year 4.48%
5 year 4.83%
10 year 4.90%
inception 7.35%
(12.07.76)
<PAGE>
Statement of Net Assets
June 30, 1999
U.S. Government Principal
Agency Obligations - 46.4% Amount
Value
Federal Home Loan Bank:
4.98%, 4/14/00 $5,000,000 $4,999
,213
5.01%, 4/28/00 5,000,000 4,998,020
Federal Home Loan Mortgage Corporation,
Discount Notes:
4.81%, 7/15/99 10,000,000 9,981,
294
4.72%, 8/9/99 8,000,000 7,959,093
4.72%, 8/13/99 2,000,000 1,988,724
4.74%, 9/8/99 4,200,000 4,161,843
4.81%, 9/8/99 6,580,000 6,519,338
4.74%, 9/10/99 5,369,000 5,318,809
4.557%, 9/24/99 5,000,000 4,946,202
4.74%, 9/24/99 7,000,000 6,921,658
4.73%, 10/1/99 7,000,000 6,915,386
5.24%, 6/2/00 5,000,000 4,754,739
Federal National Mortgage Association:
5.79%, 10/12/99 5,700,000 5,714,110
5.83%, 11/12/99 10,000,000 10,024
,700 Federal National Mortgage
Association, Discount Notes:
4.77%, 7/1/99 21,000,000 21,000
,000 4.73%, 8/6/99 6,000,000
5,971,620 4.74%, 8/6/99
6,000,000 5,971,560 4.90%, 8/1
3/99 1,000,000 994,147 4.79%, 8/2
4/99 10,000,000 9,925,450 4.80%, 8/2
4/99 5,000,000 4,964,000 4.75%, 10/
1/99 5,000,000 4,939,306 Student Loan
Marketing Association:
4.93%, 2/8/99 8,400,000 8,394,469
5.185%, 7/15/99 5,000,000 5,000,000
Total U.S. Government Agency
Obligations
(Cost $152,363,681) 152,363,681
Depository Receipts For U.S. Government
Guaranteed Loans - 0.0%+
Colson Services Corporation Loan Sets: *
8.25%, 4/01/12 16,230 16,560
Total Depository Receipts for U.S.
Government
Guaranteed Loans (Cost $16,560)
16,560
Variable Rate Loans Guaranteed By
Agencies Of The U.S. Government - 12.4%
Rural Electric Coop Grantor Trust
Certificates VRDN,
5.70%, 12/25/17 40,690,000 40,690
,000
Total Variable Rate Loans Guaranteed by
Agencies of the U.S. Government
(Cost $40,690,000)
40,690,000
<PAGE>
State Obligations Collateralized By
Principal
The U.S. Government Securities - 0.6%
Amount Value
New York General Obligation Bonds,
9.875%, 8/15/18
(Prerefunded 8/15/99 @ 102) $2,000,000
$2,021,833
Total State Obligations Collateralized
by
the U.S. Government Securities
( Cost $2,021,833 )
2,021,833
Repurchase Agreements, For Delivery At Cost,
Collateralized By Securities Issued Or
Guaranteed By The U.S. Government - 40.0%
Donaldson, Lufkin & Jenrette Securities,
Inc, 4.90%, dated
6/30/99, due 7/1/99:
(Collateral: $20,829,778,
FFCB, 5.38%, 2/4/02) 19,984,000
19,984,000
(Collateral: $29,987,230, FHLB,
5.03%, 4/22/02) 29,122,00029,122,
000
(Collateral: $19,851,617,
FNMA, 5.86%, 2/11/04) 19,385,000
19,385,000
(Collateral: $25,284,167,
FHLB, 6.60%, 4/28/09) 24,509,000
24,509,000
State Street Bank, 4.85%, dated 6/30/99, due
7/1/99,
(Collateral: $40,020,745,
FNMA, 6.08%, 5/10/04) 38,500,000
38,500,000
Total Repurchase Agreements (Cost
$131,500,000) 131,500,000
TOTAL INVESTMENTS (Cost $326,592,074) -
99.4% 326,592,074 Other assets and
liabilities, net - 0.6% 1,859,209
Net Assets - 100.0%
$328,451,283
Net Assets Consist Of:
Paid-in capital applicable to the following
shares of beneficial interest,
unlimited number of no par value shares
authorized:
Class O: 229,833,447 shares outstanding
$229,588,175
Class B: 189,033 shares outstanding
189,033 Class C: 326,285 shares outstanding
326,285 Class T: 84,251,774 shares
outstanding 84,251,774
Institutional Class: 14,211,613 shares
outstanding 14,211,613 Undist
ributed net investment income (loss)
6,594 Accumulated net realized gain (loss)
on investments (122,191)
Net Assets $328,451,283
<PAGE>
Net Asset Value Per Share
Class O (based on net assets of
$229,453,972) $1.00
Class B (based on net assets of $189,066)
$1.00
Class C (based on net assets of $326,508)
$1.00
Class T (based on net assets of $84,257,491)
$1.00
Institutional Class (based on net assets of
$14,224,246) $1.00
Abbreviations:
COPs: Certificates of Participation
VRDN: Variable Rate Demand Notes
+ Represents rates in effect at June 30,
1999, after regularly scheduled adjustments
on such date. Interest rates adjust monthly
and quarterly,
generally at the beginning of the month or
calendar quarter, or semiannually based on
prime plus contracted adjustments. As of
June 30, 1999, the prime interest rate was
7.75%.
* Colson Services Corporation is the
collection, and transfer agent for certain
of the Fund's U.S. Government guaranteed
variable rate loans. Each
depository receipt pertains to a set,
grouped by interest rate, of these loans.
See notes to financial statements.
<PAGE>
Statement of Operations
Six Months Ended June 30, 1999
Net Investment Income
Investment Income
Interest income $6,942,418
Expenses
Investment advisory fee 354,964
Transfer agency fees and expenses
266,198
Distribution plan expenses:
Class B 534
Class C 1,818
Class T 23,282
Trustees' fees and expenses 11,823
Accounting fees 17,592
Administrative Fees:
Class O 302,279
Class B 133
Class C 455
Class T 23,282
Institutional Class 5,763
Custodian fees 15,186
Registration fees 50,285
Reports to shareholders 63,873
Professional fees 13,973
Miscellaneous 31,944
Total expenses 1,183,384
Reimbursement from Advisor:
Class B (7,033)
Class C (8,102)
Institutional Class (14,559)
Fees paid indirectly (24,290)
Net expenses 1,129,400
Net Investment Income 5,813,018
Realized Gain (Loss) on Investments
Net realized gain (loss) 162,002
Increase (Decrease) in Net Assets
Resulting from Operations
$5,975,020
See notes to financial statements.
<PAGE>
Statements of Changes in Net Assets
Six Months EndedY
ear Ended
June 30,December
31,
Increase (Decrease) in Net Assets
1999 1998
Operations
Net investment income $5,813,018$12,181
,953
Net realized gain (loss) 162,002
(24,011)
Increase (Decrease) in Net Assets
Resulting from Operations 5,975,020
12,157,942
Distributions to shareholders from
Net investment income:
Class O shares (4,923,457)(11,79
1,212)
Class B shares (1,516) (912)
Class C shares (5,198) (3,911)
Class T shares (366,350) ----
Institutional Class shares (522,877)
(390,877)
Total distributions (5,819,398)
(12,186,912)
Capital share transactions:
Shares sold:
Class O shares 186,678,468400,22
5,222
Class B shares 167,258 170,699
Class C shares 415,151 657,732
Class T shares 109,400,784 ----
Institutional Class shares 47,467,118
52,364,180
Reinvestment of distributions:
Class O shares 4,759,26411,511,736
Class B shares 1,482 869
Class C shares 4,787 3,395
Class T shares 357,166 ----
Institutional Class shares 467,956
375,403
Shares redeemed:
Class O shares (208,139,025)(397
,714,517)
Class B shares (53,934) (97,341)
Class C shares (433,008)(321,772)
Class T shares (25,506,176) ----
Institutional Class shares (53,851,487)
(32,611,557)
Total capital share transactions
61,735,804 34,564,049
Total Increase (Decrease) in Net Assets
61,891,426 34,535,079
Net Assets
Beginning of period 266,559,857232,02
4,778
End of period (including undistributed net
investment income
of $6,594 and $12,974, respectively)
$328,451,283 $266,559,857
<PAGE>
Six Months EndedY
ear Ended
June 30,December
31,
Capital Share Activity 1999 1998
Shares sold:
Class O shares 186,678,468400,22
5,222
Class B shares 167,258 170,699
Class C shares 415,151 657,732
Class T shares 109,400,784 ----
Institutional Class shares 47,467,118
52,364,180
Reinvestment of distributions:
Class O shares 4,759,26411,511,736
Class B shares 1,482 869
Class C shares 4,787 3,395
Class T shares 357,166 ----
Institutional Class shares 467,956
375,403
Shares redeemed:
Class O shares (208,139,025)(397
,714,517)
Class B shares (53,934) (97,341)
Class C shares (433,008)(321,772)
Class T shares (25,506,176) ----
Institutional Class shares (53,851,487)
(32,611,557)
Total capital share activity
61,735,804 34,564,049
See notes to financial statements.
<PAGE>
Notes To Financial Statements
Note A -- Significant Accounting Policies
General: The Calvert First Government Money
Market Fund (the "Fund"), the only series of
First Variable Rate Fund for Government
Income, is registered under the Investment
Company Act of 1940 as a diversified, open-
end management investment company. The Fund
offers five classes of shares of beneficial
interest. Class O shares are sold to the
public, with no front-end sales charge at
the time of purchase and no back-end load
when they are redeemed. Class B shares may
be purchased only by exchange from Class B
shares of another Calvert Group Fund. Class
B shares are sold without a front-end sales
charge at the time of purchase, but may be
subject to a deferred
sales charge upon redemption. Class C shares
may be purchased only by exchange from Class
C shares of another Calvert Group Fund.
Class C shares are sold without a front-end
sales charge at the time of purchase. They
may
be subject to a deferred sales charge if
they are redeemed within one year
after purchase of the Class C shares in the
original fund. Class B and C shares have
higher expenses than Class O shares,
including Distribution Plan expenses. Class
O shares are not subject to a Distribution
Plan. Institutional Class shares require a
minimum account balance of $1,000,000. They
have
no front-end or deferred sales charge.
Institutional Class shares are not
subject to a Distribution Plan. Effective
March 1, 1999, the Fund began to offer Class
T shares. Class T shares are sold to
investors with brokerage accounts at The
Advisors Group, Inc. Class T shares are sold
with no front-
end sales charge at the time of purchase and
no back-end load when they are redeemed, and
are subject to a Distribution Plan.
Security Valuation: Securities are valued at
amortized cost which approximates market.
Repurchase Agreements: The Fund may enter
into repurchase agreements
with recognized financial institutions or
registered broker/dealers and, in all
instances, holds underlying securities with
a value exceeding the total repurchase
price, including accrued interest. Although
risk is mitigated by
the collateral, the Fund could experience a
delay in recovering its value and
a possible loss of income or value if the
counterparty fails to perform in accordance
with the terms of the agreement.
Security Transactions and Investment Income:
Security transactions are accounted for on
trade date. Realized gains and losses are
recorded on an identified cost basis.
Interest income, accretion of discount and
amortization
of premium are recorded on an accrual basis.
Investment income and realized gains and
losses are allocated to separate classes of
shares based upon the relative net assets of
each class. Expenses arising in connection
with a class are charged directly to that
class. Expenses common to the classes are
allocated to each class in proportion to
their relative net assets.
Distributions to Shareholders: Distributions
to shareholders are recorded by the Fund
on ex-dividend date. Dividends from net
investment income are accrued daily and paid
monthly. Distributions from net realized
capital gains, if any, are
paid at least annually. Distributions are
determined in accordance with
income tax regulations which may differ from
generally accepted accounting principles;
accordingly, periodic reclassifications are
made within the Fund's capital accounts to
reflect income and gains available for
distribution under income tax regulations.
<PAGE>
Estimates: The preparation of financial
statements in conformity with generally
accepted accounting principles 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 income and expenses during the
reporting period. Actual results could
differ from those estimates.
Expense Offset Arrangements: The Fund has an
arrangement with its custodian bank whereby
the custodian's and transfer agent's fees
may be paid indirectly by credits earned on
the Fund's cash on deposit with the bank.
Such a deposit arrangement is an alternative
to overnight investments.
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
earnings.
Note B -- Related Party Transactions
Calvert Asset Management Company, Inc. (the
"Advisor") is wholly-owned
by Calvert Group, Ltd. ("Calvert"), which is
indirectly wholly-owned by Ameritas Acacia
Mutual Holding Company. The Advisor provides
investment advisory services and pays the
salaries and fees of officers and affiliated
Trustees of the Fund. For its services, the
Advisor receives a
monthly fee based on the following annual
rates of average daily net assets: .25% on
the first $500 million, .225% on the next
$400 million, .20% on the next $400 million,
.175% on the next $700 million and .15% on
the excess of $2 billion. Under the terms of
the agreement, $134,836 was payable at
period end.
Calvert Administrative Services Company, an
affiliate of the Advisor, provides
administrative services to the Fund for an
annual fee. Class O, Class B, Class C, and
Class T pay an annual rate of .25% and
Institutional Class pays an annual rate of
.05%, based on their average daily net
assets. Under
the terms of the agreement, $66,384 was
payable at period end.
Calvert Distributors, Inc., an affiliate of
the Advisor, is the distributor and
principal underwriter for the Fund.
Distribution Plans, adopted by Class B, C
and T shares, allow the Fund to pay the
distributor for expenses and services
associated with distribution of shares. The
expenses paid may not exceed
1.0% annually of average daily net assets of
Class B and Class C and .25%
of average daily net assets of Class T.
Under the terms of the agreement, $18,530
was payable at period end.
Calvert Shareholder Services, Inc. ("CSSI"),
an affiliate of the Advisor, is the
shareholder servicing agent for the Fund.
For its services, CSSI received a fee of
$116,621 for the six months ended June 30,
1999. Under terms of the agreement, $17,208
was payable at period end. National
Financial Data Services, Inc., is the
transfer and dividend disbursing agent.
Each Trustee who is not affiliated with the
Advisor received an annual fee of $20,500
plus up to $1,500 for each Board and
Committee meeting attended. Trustee fees are
allocated to each of the funds served.
<PAGE>
Note C -- Investment Activity
The cost of investments owned at June 30,
1999 was substantially the same
for federal income tax and financial
reporting purposes. The table below presents
the net capital loss carryforwards as of
December 31, 1998 with expiration dates:
Capital Loss Carryforwards Expiration
Dates
$225,116 12/31/99
25,746 12/31/00
9,320 12/31/01
24,001 12/31/06
Capital loss carryforwards may be utilized
to offset current and future capital gains
until expiration.
For the six months ended June 30, 1999, the
Fund effected transactions with other
Calvert Portfolios, which resulted in net
realized gain on sales of securities of
$162,209. The purchases and sales
transactions, executed at independently
derived prices pursuant to Rule 17a-7
under the Investment Company Act of 1940,
were $0, and $18,076,437, respectively.
Note D -- Line of Credit
A financing agreement is in place with all
Calvert Group Funds and State Street Bank
and Trust Company ("the Bank"). Under the
agreement, the Bank is providing an
unsecured line of credit facility, in the
aggregate amount of $50 million ($25 million
committed and $25 million uncommitted), to
be accessed by the Funds for temporary or
emergency purposes only.
Borrowings under this facility bear interest
at the overnight Federal Funds Rate plus
.50% per annum. A commitment fee of .10% per
annum will be incurred on the unused portion
of the committed facility which will be
allocated to all participating funds. The
Fund had no loans outstanding pursuant to
this line of credit at June 30, 1999.
<PAGE>
Financial Highlights
Periods Ended
June 30,December 31,Decem
ber 31,
Class O Shares 1999 1998 1997
Net asset value, beginning $1.00 $1.00
$1.00
Income from investment operations
Net investment income.020 .048 .049
Distributions from
Net investment income(.020)(.048) (.049)
Net asset value, ending$1.00$1.00 $1.00
Total return 2.04% 4.93%
5.00%
Ratios to average net assets:
Net investment income4.06%(a)4.82% 4.88%
Total expenses +.85%(a) .81% .82%
Net expenses .83%(a) .79% .80%
Net assets, ending (in thousands) $229,454
$246,019 $232,025
Number of shares outstanding,
ending (in thousands)229,833246,535232,514
Years Ended
December 31,December 31,Decem
ber 31,
Class O Shares 1996 1995 1994
Net asset value, beginning $1.00 $1.00
$1.00
Income from investment operations
Net investment income.047 .051 .036
Distributions from
Net investment income(.047)(.051) (.036)
Net asset value, ending$1.00$1.00 $1.00
Total return 4.79% 5.22%
3.66%
Ratios to average net assets:
Net investment income4.69%5.04% 3.56%
Total expenses + .86% .89% --
Net expenses .85% .88% .81%
Net assets, ending (in thousands) $239,420
$241,150 $230,183
Number of shares outstanding,
ending (in thousands)239,910241,685230,618
<PAGE>
Financial Highlights
Periods Ended
June 30,December
31,
Class B Shares 1999 1998^
Net asset value, beginning $1.00
$1.00
Income from investment operations
Net investment income .014 .027
Distributions from
Net investment income (.014) (.027)
Net asset value, ending $1.00 $1.00
Total return 1.43%
2.72%
Ratios to average net assets:
Net investment income 2.85%(a) 3.28%(a)
Total expenses + 2.06%(a) 2.02%(a)
Net expenses 2.00%(a) 2.00%(a)
Expenses reimbursed 13.17%(a)34.91%(a)
Net assets, ending (in thousands)
$189 $74
Number of shares outstanding,
ending (in thousands) 189 74
Periods Ended
June 30,December
31,
Class C Shares 1999 1998^^
Net asset value, beginning $1.00
$1.00
Income from investment operations
Net investment income .014 .020
Distributions from
Net investment income (.014) (.020)
Net asset value, ending $1.00 $1.00
Total return 1.43%
2.06%
Ratios to average net assets:
Net investment income 2.90%(a) 3.35%(a)
Total expenses + 2.03%(a) 2.02%(a)
Net expenses 2.00%(a) 2.00%(a)
Expenses reimbursed 4.46%(a) 6.44%(a)
Net assets, ending (in thousands)
$327 $339
Number of shares outstanding,
ending (in thousands) 326 339
<PAGE>
Financial Highlights
Period Ended
June 30,
Class T Shares 1999^^^^
Net asset value, beginning
$1.00
Income from investment operations
Net investment income .012
Distributions from
Net investment income (.012)
Net asset value, ending $1.00
Total return
1.25%
Ratios to average net assets:
Net investment income 4.00%(a)
Total expenses + .87%(a)
Net expenses .85%(a)
Expenses reimbursed ----
Net assets, ending (in thousands)
$84,257
Number of shares outstanding,
ending (in thousands) 84,252
Periods Ended
June 30,December
31,
Institutional Class Shares 1999
1998^^^
Net asset value, beginning $1.00
$1.00
Income from investment operations
Net investment income .023 .015
Distributions from
Net investment income (.023) (.015)
Net asset value, ending $1.00 $1.00
Total return 2.27%
1.49%
Ratios to average net assets:
Net investment income 4.54%(a) 4.95%(a)
Total expenses + .37%(a) .34%(a)
Net expenses .36%(a) .32%(a)
Expenses reimbursed .13%(a) .09%(a)
Net assets, ending (in thousands)
$14,224 $20,128
Number of shares outstanding,
ending (in thousands) 14,212 20,128
(a) Annualized
^ From April 1,1998 inception
^^ From June 1, 1998 inception
^^^ From September 16, 1998 inception
^^^^ From March 1, 1999 inception
+ Effective December 31, 1995, this ratio
reflects total expenses before reduction for
fees paid indirectly; such reductions are
included in the ratio of net expenses. Total
expenses are presented net of expense
waivers and reimbursements.
<PAGE>
A special meeting of shareholders was
scheduled for February 24, 1999.
There were several proposals voted upon at
the meeting. A brief description
of each proposal and the number of votes
received for, against, and votes to abstain
is shown below. All proposals were passed.
Proposal 1 - To elect the Board of Trustees.
Nominees For Agai
nst
Richard L. Baird, Jr.136,049,34411,334,239
Frank H. Blatz, Jr.136,009,73911,373,844
Frederick T. Borts135,594,08011,789,503
Charles E. Diehl134,250,94813,132,635
Douglas E. Feldman135,909,32011,474,263
Peter W. Gavian135,814,05711,569,526
John G. Guffey, Jr.131,980,56015,403,023
Barbara J. Krumsiek135,953,05611,430,527
M. Charito Kruvant136,037,21711,346,366
Arthur J. Pugh136,020,40811,363,175
David R. Rochat135,985,39511,398,188
D. Wayne Silby135,404,11811,979,465
Proposal 2 - To approve amended fundamental
investment restrictions to: (a) delete
restrictions that are no longer required to
be fundamental due to
changes in state laws or which otherwise
need not be fundamental; and (b) to revise
the language of those restrictions that are
still required to be fundamental.
For Against Abstain
Broker Non-Vote
120,477,369 7,252,18319,112,448541,583
Proposal 3 - To approve a new investment
advisory agreement with the investment
advisor, Calvert Asset Management Company,
Inc. ("CAMCO").
For Against Abstain
135,551,158 5,167,6766,664,747
Proposal 4 - To ratify the Board's selection
of auditors, PricewaterhouseCoopers LLP.
For Against Abstain
141,021,425 1,526,7114,835,445
<PAGE>
Calvert Group and the Year 2000
Plans and Progress
We are now less than a year away from the
year 2000, a problematic date for computer
systems coded for two-character year format.
Entered as "00," the year 2000 would be
processed as 1900, a mistake that could foul
a variety of date-sensitive transactions.
As your mutual fund sponsor, our goal is
make sure there is no interruption in the
level of service you receive. In the summary
below, we've outlined the steps Calvert
Group is taking to ensure our systems
perform reliably.
Step One--Assess Systems and Software.
Develop an Action Plan.
In 1997, we identified all systems,
operating platforms and software potentially
affected by the millennium bug. These
included:
Calvert Group systems--portfolio trading,
sales contact and reporting
and internal management reporting
transfer agency systems--shareholder
record-keeping and transaction
processing
subadvisor systems--investment accounting
other third-party data and service
systems
We also formed a Y2K task force, led by
Calvert's vice president of technology. This
group has identified and prioritized our
efforts to achieve year 2000 compliance.
Step Two--Test for Compliance. Repair
Systems as Necessary.
Internal systems have been tested. We've
made repairs and moved modified code into
production. These systems are now fully
compliant. Transfer
agency systems were re-engineered for
compliance in 1989. Recent tests indicate
these are, in fact, compliant. The readiness
of third-party systems, including subadvisor
systems, has been evaluated. Based on
information received from these groups, we
have found no significant obstacles to
compliance.
Step Three--Confirm Compliance. Finalize
Contingency Plan.
Testing of transfer agency systems will
continue through 1999 to ensure
these remain compliant and continue to
interact correctly with external systems and
processes. The transfer agency has
established a back-up site, should main
systems fail, and compliance testing of
these contingency measures are also
underway. We are developing contingency
plans to ensure that any unforeseen systems
failures will not adversely affect our
operations
or inconvenience our shareholders.
For more information or to get an update on
remediation and testing efforts, please
visit us online at www.calvertgroup.com.
<PAGE>
Calvert
First
Government
Money
Market
Fund
This report is intended to provide fund
information to
shareholders. It is not authorized for
distribution to
prospective investors unless preceded or
accompanied by a prospectus.
printed on
recycled paper
using soy-
based inks
To Open an Account
800-368-2748
Yields and Prices
Calvert Information Network
(24 hours, 7 days a week)
800-368-2745
Service for Existing Account
Shareholders: 800-368-2745
Brokers: 800-368-2746
TDD for Hearing Impaired
800-541-1524
Branch Office
4550 Montgomery Avenue
Suite 1000 North
Bethesda, Maryland 20814
Registered, Certified
or Overnight Mail
Calvert Group
c/o NFDS,
330 West 9th Street
Kansas City, MO 64105
Web Site
http://www.calvertgroup.com
Principal Underwriter
Calvert Distributors, Inc.
4550 Montgomery Avenue
Suite 1000 North
Bethesda, Maryland 20814
Calvert Group's
Family of Funds
Tax-Exempt Money Market Funds
CTFR Money Market Portfolio
CTFR California Money Market Portfolio
Taxable Money Market Funds
First Government Money Market Fund
CSIF Money Market Portfolio
Balanced Fund
CSIF Balanced Portfolio
Municipal Funds
CTFR Limited-Term Portfolio
CTFR Long-Term Portfolio
CTFR Vermont Municipal Portfolio
National Muni. Intermediate Portfolio
California Muni. Intermediate Portfolio
Maryland Muni. Intermediate Portfolio
Virginia Muni. Intermediate Portfolio
Taxable Bond Funds
CSIF Bond Portfolio
Income Fund
Equity Funds
CSIF Managed Index Portfolio
CSIF Equity Portfolio
Capital Accumulation Fund
CWV International Equity Fund
New Vision Small Cap Fund
New Africa Fund
