JUNE 30, 2000
SEMI-ANNUAL
REPORT
CALVERT FIRST
GOVERNMENT MONEY MARKET FUND
<PAGE>
CONTENTS
PRESIDENT'S LETTER
2
PORTFOLIO
MANAGER REMARKS
3
STATEMENT OF
NET ASSETS
5
STATEMENT OF OPERATIONS
7
STATEMENTS OF CHANGES IN NET ASSETS
8
NOTES TO
FINANCIAL STATEMENTS
10
FINANCIAL HIGHLIGHTS
13
DEAR SHAREHOLDERS:
THE FIRST SIX MONTHS OF 2000 HAVE OFFERED MIXED MESSAGES ON GROWTH AND INTEREST
RATES - AND SET A TONE OF CHALLENGE FOR INVESTORS AND FUND MANAGERS. STILL,
CAUTION AND DISCIPLINE HAVE ALWAYS BEEN A KEYNOTE OF OUR MANAGER'S INVESTMENT
STRATEGIES, AND INVESTOR CONFIDENCE IS OUR GOAL WHATEVER THE ECONOMIC CLIMATE.
THE FIRST QUARTER OF THE YEAR CONTINUED MUCH AS 1999 LEFT OFF, WITH CONTINUED
ECONOMIC EXPANSION, LOW INTEREST RATES, STRONG MARKET PERFORMANCE WITHIN CERTAIN
EQUITY SECTORS, AND FLATTENED YIELD CURVES IN THE BOND MARKET AS SHORT-TERM
INTEREST RATES ROSE EACH TIME THE FEDERAL FUNDS BENCHMARK WAS RAISED.
THE SECOND QUARTER OF THE YEAR OFFERED INVESTORS A DIFFERENT PICTURE. ECONOMIC
GROWTH APPEARED TO BE SLOWING AND SOME STOCK MARKET VALUATIONS PROVED
UNSUSTAINABLE. AFTER A SERIES OF RATE INCREASES, THE FED MADE THE DECISION ON
JUNE 28TH TO LEAVE ITS FED FUND RATES UNCHANGED AT 6.5% SINCE THE ECONOMY WAS
FINALLY SLOWING.
WHETHER THE FED IS RIGHT, ONLY TIME AND KEY INDICATORS WILL TELL. CERTAINLY NO
ONE IS RULING OUT THE POSSIBILITY OF FURTHER INTERVENTION LATER IN THE YEAR IF
MORE CHECKS ON INFLATIONARY PRESSURE ARE NEEDED. IF SUCH ACTIONS PROVE
NECESSARY, THE LONG-AWAITED BOND MARKET RECOVERY COULD BE SHORT-LIVED, WITH A
RETURN TO FLATTENING YIELDS FOR THE INVESTOR. MEANWHILE, WALL STREET APPEARS
CONFIDENT THAT THE ECONOMY IS IN FOR A SOFT LANDING - WITH SLOWER GROWTH IN
CORPORATE PROFITS AND STABILIZED RETURNS ON EQUITY INVESTMENTS.
WHAT SHOULD ALL THIS SIGNAL TO THE REASONABLE INVESTOR? THAT INVESTOR DISCIPLINE
AND THE NEED TO MAKE INFORMED DECISIONS IS AS IMPORTANT AS EVER BEFORE. AS
ALWAYS, WE ENCOURAGE YOU TO MAKE DECISIONS BASED ON YOUR FINANCIAL OBLIGATIONS
AND TOLERANCE FOR RISK. YOUR FINANCIAL PROFESSIONAL CAN SUGGEST STRATEGIES THAT
CAN KEEP YOU ON TRACK TO MEET YOUR OBJECTIVES.
WE APPRECIATE YOUR INVESTMENT IN CALVERT GROUP FUNDS AND LOOK FORWARD TO WORKING
WITH YOU TO ACHIEVE YOUR FINANCIAL GOALS.
SINCERELY,
BARBARA J. KRUMSIEK
PRESIDENT AND CEO
JULY 28, 2000
<PAGE>
TOM DAILEY 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
131577-10-8
CALVERT FIRST GOVERNMENT MONEY MARKET FUND
HOW WOULD YOU CHARACTERIZE THE INVESTMENT CLIMATE OVER THE PAST SIX MONTHS?
DURING THE PAST 6 MONTHS, MAJOR STOCK MARKET INDICES HAVE DECLINED, AND THE
MAJOR FORCES DRIVING THE BULL MARKET AND ECONOMIC GROWTH HAVE BEGUN TO SHOW
SIGNS OF FALTERING. LOW INFLATION, LOW INTEREST RATES, ROBUST CORPORATE
EARNINGS, AND A SURGE IN Y2K SPENDING, ALL HELPED CONTINUE THE CURRENT ECONOMIC
EXPANSION. UNPRECEDENTED STOCK MARKET PERFORMANCE HELPED CONSUMER CONFIDENCE
REACH NEW HIGHS. THIS, COUPLED WITH ACCELERATED CONSUMER SPENDING AND A SMALLER
POOL OF AVAILABLE WORKERS, CAUSED CONCERNS THAT THE CURRENT RATE OF EXPANSION
WAS UNSUSTAINABLE AND THAT SIGNS OF INFLATION WOULD SOON APPEAR.
AS A RESULT OF THESE CONCERNS, THE FEDERAL RESERVE OPEN MARKET COMMITTEE (FOMC)
RAISED THE FEDERAL FUNDS RATE THREE TIMES DURING THE PERIOD. ON FEBRUARY 2, THE
FOMC RAISED RATES 25 BASIS POINTS TO 5.75% IN AN EFFORT TO KEEP THE ECONOMY
GROWING, BUT AT A SLOWER PACE. AS THE ECONOMY ROLLED ON, THE FED MOVED AGAIN ON
MARCH 21 WITH ANOTHER 25 BASIS POINT MOVE TO 6.00%. ONCE AGAIN, ECONOMIC GROWTH
CONTINUED AT A FEVERISH PACE AND SIGNS OF INFLATION STARTED TO CREEP IN,
PROMPTING THE FED TO RAISE RATES 50 BASIS POINTS TO 6.50% ON MAY 16.
AFTER SIX RATE HIKES SINCE JUNE, 1999, THE FED FINALLY KEPT THE FED FUNDS RATE
UNCHANGED AT THEIR LAST MEETING, SINCE RECENT ECONOMIC DATA HAS SHOWN
PRELIMINARY SIGNS OF GROWTH DECELERATION. HOWEVER, THE FOMC WILL CONTINUE TO
MONITOR ECONOMIC RELEASES FOR ANY SIGNS OF INFLATIONARY PRESSURES.
WHAT WAS YOUR STRATEGY DURING THE PERIOD?
DURING THE FIRST QUARTER OF 2000, SHORT-TERM TAXABLE RATES CONTINUED TO RISE
DRAMATICALLY IN LIGHT OF FED TIGHTENING. AS TAXABLE MONEY MARKET RATES WERE
PRICING IN MORE FED RATE INCREASES THAN WHAT A REASONABLE MARKET OBSERVER MIGHT
EXPECT, WE BEGAN TO BUY AGGRESSIVELY AND EXTENDED THE AVERAGE MATURITY OF THE
PORTFOLIO. AS HINTS OF AN ECONOMIC SLOWDOWN SURFACED IN THE SECOND QUARTER,
RATES QUICKLY REVERSED COURSE AND DROPPED TO LEVELS THAT REFLECTED THE MARKET'S
PERCEPTION OF A FED THAT WAS NEARING THE END OF THE TIGHTENING CYCLE. AT THE
SAME TIME, WE HAVE MAINTAINED ENOUGH LIQUIDITY IN ORDER TO INVEST IN HIGHER
YIELDING SECURITIES SHOULD RATES RISE AGAIN.
<PAGE>
HOW DID THE FUND PERFORM?
FOR THE SIX MONTHS ENDED JUNE 30, 2000, THE FUND'S CLASS O SHARES RETURNED
2.65%, SLIGHTLY TRAILING THE 2.66% FOR THE LIPPER US GOVERNMENT MONEY MARKET
FUNDS AVERAGE.
WHAT IS YOUR OUTLOOK?
THERE ARE MANY UNCERTAINTIES FACING THE ECONOMY. THE COMING MONTHS WILL PROVIDE
SOME CLUES AS TO WHETHER NON-INFLATIONARY ECONOMIC GROWTH CAN BE SUSTAINED.
WHILE THE POTENTIAL FOR FURTHER FED RATE INCREASES EXISTS, WE WILL CONTINUE TO
MONITOR KEY ECONOMIC INDICATORS FOR SIGNS THAT THE RECENT DECELERATION OF
ECONOMIC ACTIVITY WAS NOT AN ABERRATION, BUT A CONFIRMATION OF A MORE REASONABLE
RATE OF GROWTH.
JULY 28, 2000
PLEASE REMEMBER, THIS DISCUSSION REFLECTS THE VIEWS AND OPINIONS OF CALVERT
ASSET MANAGEMENT COMPANY AT JUNE 30, 2000, 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.
PORTFOLIO
STATISTICS
WEIGHTED
AVERAGE MATURITY
6.30.00 50 DAYS
12.31.99 39 DAYS
COMPARATIVE MONTH-END YIELDS
CALVERT IBC'S
FIRST GOVERNMENT GOVERNMENT
MONEY MARKET MONEY MARKET
CLASS O AVERAGES
6.30.00 5.74% 5.65%
5.31.00 5.43% 5.40%
4.30.00 5.26% 5.28%
3.31.00 5.19% 5.14%
2.29.00 5.11% 5.01%
1.31.00 4.89% 4.81%
12.31.99 4.92% 4.76%
CLASS O
AVERAGE ANNUAL
TOTAL RETURN
AS OF 6.30.00
1 YEAR 5.04%
5 YEAR 4.87%
10 YEAR 4.61%
INCEPTION 7.25%
(12.07.76)
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.
<PAGE>
STATEMENT OF NET ASSETS
JUNE 30, 2000
PRINCIPAL
U.S. GOVERNMENT AGENCY OBLIGATIONS - 51.8% AMOUNT VALUE
FEDERAL AGRICULTURAL MORTGAGE CORPORATION, DISCOUNT NOTES,
6.47%, 8/30/00 $11,360,000 $11,237,501
FEDERAL FARM CREDIT BANK, 6.293%, 7/3/00 10,000,000 10,000,000
FEDERAL HOME LOAN BANK:
5.71%, 8/9/00 5,000,000 4,999,949
5.00%, 8/14/00 7,500,000 7,487,943
6.28%, 10/12/00 10,000,000 9,999,578
5.75%, 12/15/00 10,000,000 9,971,584
6.56%, 2/15/01 5,000,000 4,997,067
FEDERAL HOME LOAN MORTGAGE CORPORATION, 6.50%, 1/12/01
6,700,000 6,700,000
FEDERAL HOME LOAN MORTGAGE CORPORATION, DISCOUNT NOTES:
6.40%, 7/5/00 15,000,000 14,989,333
6.43%, 7/11/00 20,000,000 19,964,278
6.435%, 8/1/00 10,000,000 9,944,588
6.50%, 11/24/00 12,859,000 12,520,022
FEDERAL NATIONAL MORTGAGE ASSOCIATION:
5.97%, 10/2/00 10,000,000 9,978,644
6.47%, 2/16/01 5,000,000 4,999,089
6.498%, 3/7/01 10,000,000 10,000,000
6.52%, 3/16/01 5,000,000 5,000,304
6.57%, 4/26/01 5,000,000 4,995,713
FEDERAL NATIONAL MORTGAGE ASSOCIATION, DISCOUNT NOTES:
6.49%, 12/7/00 10,000,000 9,713,358
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (COST $167,498,951)
167,498,951
DEPOSITORY RECEIPTS FOR U.S. GOVERNMENT
GUARANTEED LOANS - 0.0%
COLSON SERVICES CORPORATION LOAN SETS: 8.21%, 4/1/12 *^
4,226 4,302
TOTAL DEPOSITORY RECEIPTS FOR U.S. GOVERNMENT
GUARANTEED LOANS (COST $4,302) 4,302
VARIABLE RATE LOANS GUARANTEED BY
AGENCIES OF THE U.S. GOVERNMENT - 23.7%
RURAL ELECTRIC COOP GRANTOR TRUST CERTIFICATES, VRDN,
6.60%, 12/15/17, TOA: MORGAN GUARANTY 39,890,000 39,890,000
POST APARTMENT HOMES LP, VRDN, LOC: FNMA, 6.68%, 7/15/29
31,185,000 31,185,000
IVACO, INC., VRDN, 11.50%, 9/15/00 5,360,000 5,718,118
TOTAL VARIABLE RATE LOANS GUARANTEED BY AGENCIES OF THE
U.S. GOVERNMENT (COST $76,793,118) 76,793,118
<PAGE>
REPURCHASE AGREEMENTS, FOR DELIVERY AT COST,
COLLATERALIZED BY SECURITIES ISSUED OR GUARANTEED
BY THE U.S. GOVERNMENT - 23.8% PRINCIPAL
AMOUNT VALUE
STATE STREET BANK, 6.35%, DATED 6/30/00, DUE 7/3/00,
(COLLATERAL: $17,514,725, FFCB, 6.35%, 12/28/00)
$17,000,000 $17,000,000
DONALDSON, LUFKIN & JENRETTE, 6.75%, DATED 6/30/00 DUE 7/3/00,
(COLLATERAL: $14,015,000, FHLB, 5.32%, 11/6/03 AND
$50,000,000, FHLB, 6.545%, 3/17/09) 60,000,000 60,000,000
TOTAL REPURCHASE AGREEMENTS (COST $77,000,000) 77,000,000
TOTAL INVESTMENTS (COST $321,296,371) - 99.3% 321,296,371
OTHER ASSETS AND LIABILITIES, NET - 0.7% 2,196,724
NET ASSETS - 100.0% $323,493,095
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: 214,537,722 SHARES OUTSTANDING $214,274,861
CLASS B: 260,446 SHARES OUTSTANDING 260,431
CLASS C: 648,983 SHARES OUTSTANDING 648,947
INSTITUTIONAL CLASS: 8,991,905 SHARES OUTSTANDING 8,990,339
CLASS T: 99,364,340 SHARES OUTSTANDING 99,360,314
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) 16,162
ACCUMULATED NET REALIZED GAIN (LOSS) ON INVESTMENTS (57,959)
NET ASSETS $323,493,095
NET ASSET VALUE PER SHARE
CLASS O (BASED ON NET ASSETS OF $214,194,135) $1.00
CLASS B (BASED ON NET ASSETS OF $260,551) $1.00
CLASS C (BASED ON NET ASSETS OF $649,312) $1.00
INSTITUTIONAL CLASS (BASED ON NET ASSETS OF $9,006,962) $1.00
CLASS T (BASED ON NET ASSETS OF $99,382,135) $1.00
( ^ ) REPRESENTS RATES IN EFFECT AT JUNE 30, 2000, 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, 2000,
THE PRIME INTEREST RATE WAS 9.50%.
( * ) COLSON SERVICES CORPORATION IS THE CUSTODIAN, 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.
ABBREVIATIONS:
VRDN: VARIABLE RATE DEMAND NOTES
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2000
NET INVESTMENT INCOME
INVESTMENT INCOME:
INTEREST INCOME $10,103,555
EXPENSES:
INVESTMENT ADVISORY FEE 418,826
TRANSFER AGENCY FEES AND EXPENSES 218,847
DISTRIBUTION PLAN EXPENSES:
CLASS B 1,794
CLASS C 4,065
CLASS T 123,896
TRUSTEES' FEES AND EXPENSES 18,442
ACCOUNTING FEES 71,131
ADMINISTRATIVE FEES:
CLASS O 275,732
CLASS B 449
CLASS C 1,016
INSTITUTIONAL CLASS 3,547
CLASS T 123,896
CUSTODIAN FEES 37,035
REGISTRATION FEES 26,608
REPORTS TO SHAREHOLDERS 49,077
PROFESSIONAL FEES 15,614
MISCELLANEOUS 9,206
TOTAL EXPENSES 1,399,181
REIMBURSEMENT FROM ADVISOR:
CLASS B (8,276)
CLASS C (5,511)
INSTITUTIONAL CLASS (5,310)
FEES PAID INDIRECTLY (35,353)
NET EXPENSES 1,344,731
NET INVESTMENT INCOME 8,758,824
REALIZED GAIN (LOSS) ON INVESTMENTS
NET REALIZED GAIN (LOSS) 1,117
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $8,759,941
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31,
INCREASE (DECREASE) IN NET ASSETS 2000 1999
OPERATIONS:
NET INVESTMENT INCOME $8,758,824 $13,518,818
NET REALIZED GAIN (LOSS) 1,117 201,884
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
8,759,941 13,720,702
DISTRIBUTIONS TO SHAREHOLDERS FROM
NET INVESTMENT INCOME:
CLASS O SHARES (5,799,716) (10,169,908)
CLASS B SHARES (7,291) (6,324)
CLASS C SHARES (16,311) (15,638)
INSTITUTIONAL CLASS SHARES (394,390) (998,810)
CLASS T SHARES (2,530,728) (2,335,338)
TOTAL DISTRIBUTIONS (8,748,436) (13,526,018)
CAPITAL SHARE TRANSACTIONS:
SHARES SOLD:
CLASS O SHARES 166,295,797 362,273,732
CLASS B SHARES 180,748 545,037
CLASS C SHARES 912,357 1,926,834
INSTITUTIONAL CLASS SHARES 28,866,273 79,366,483
CLASS T SHARES 69,227,330 166,734,229
REINVESTMENT OF DISTRIBUTIONS:
CLASS O SHARES 5,646,106 9,872,756
CLASS B SHARES 6,859 6,006
CLASS C SHARES 15,838 14,787
INSTITUTIONAL CLASS SHARES 373,716 942,859
CLASS T SHARES 2,501,172 2,347,451
SHARES REDEEMED:
CLASS O SHARES (187,506,877) (388,580,940)
CLASS B SHARES (346,843) (205,575)
CLASS C SHARES (1,334,492) (1,225,662)
INSTITUTIONAL CLASS SHARES (39,912,492) (80,773,227)
CLASS T SHARES (73,129,823) (68,313,390)
TOTAL CAPITAL SHARE TRANSACTIONS (28,204,331) 84,931,380
TOTAL INCREASE (DECREASE) IN NET ASSETS (28,192,826) 85,126,064
NET ASSETS
BEGINNING OF PERIOD 351,685,921 266,559,857
END OF PERIOD (INCLUDING UNDISTRIBUTED NET INVESTMENT INCOME
OF $16,162 AND $5,774, RESPECTIVELY) $323,493,095 $351,685,921
<PAGE>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31,
CAPITAL SHARE ACTIVITY 2000 1999
SHARES SOLD:
CLASS O SHARES 166,295,797 362,273,732
CLASS B SHARES 180,748 545,037
CLASS C SHARES 912,357 1,926,834
INSTITUTIONAL CLASS SHARES 28,866,273 79,366,483
CLASS T SHARES 69,227,330 166,734,229
REINVESTMENT OF DISTRIBUTIONS:
CLASS O SHARES 5,646,106 9,872,756
CLASS B SHARES 6,859 6,006
CLASS C SHARES 15,838 14,787
INSTITUTIONAL CLASS SHARES 373,716 942,859
CLASS T SHARES 2,501,172 2,347,451
SHARES REDEEMED:
CLASS O SHARES (187,506,877) (388,580,940)
CLASS B SHARES (346,843) (205,575)
CLASS C SHARES (1,334,492) (1,225,662)
INSTITUTIONAL CLASS SHARES (39,912,492) (80,773,227)
CLASS T SHARES (73,129,823) (68,313,390)
TOTAL CAPITAL SHARE ACTIVITY (28,204,331) 84,931,380
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 OTHER CALVERT
GROUP FUNDS. 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
OF THE FUND IN WHICH THE CLASS B SHARES WERE ORIGINALLY PURCHASED. 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 DISTRIBUTION PLAN EXPENSES.
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
TAXABLE 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 ("AMERITAS ACACIA"). 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, $136,700 WAS PAYABLE AT PERIOD END.
THE ADVISORS GROUP, INC., ("TAG"), ALSO A WHOLLY-OWNED SUBSIDIARY OF AMERITAS
ACACIA, IS A BROKER-DEALER. TAG OFFERS CLASS T SHARES AS A SWEEP ACCOUNT FOR
ITS BROKERAGE CUSTOMERS.
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, $65,618 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, $21,240 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 $99,513 FOR THE SIX MONTHS ENDED JUNE 30, 2000. UNDER TERMS OF THE AGREEMENT,
$15,926 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 RECEIVES 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, 2000 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, 1999 WITH EXPIRATION
DATES:
CAPITAL LOSS CARRYFORWARDS EXPIRATION DATES
25,746 12/31/00
9,320 12/31/01
24,011 12/31/06
CAPITAL LOSS CARRYFORWARDS MAY BE UTILIZED TO OFFSET CURRENT AND FUTURE CAPITAL
GAINS UNTIL EXPIRATION.
THE FUND MAY SELL OR PURCHASE SECURITIES FROM OTHER FUNDS MANAGED BY THE
ADVISOR, PRIMARILY AS A CASH MANAGEMENT PRACTICE. ALL TRANSACTIONS ARE EXECUTED
AT INDEPENDENTLY DERIVED PRICES PURSUANT TO RULE 17A-7 UNDER THE INVESTMENT
COMPANY ACT OF 1940.
NOTE D - LINE OF CREDIT
A FINANCING AGREEMENT IS IN PLACE WITH ALL CALVERT GROUP FUNDS (EXCEPT FOR THE
CALVERT SOCIAL INVESTMENT FUND MANAGED INDEX AND CVS AMERITAS INDEX 500
PORTFOLIOS) 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, 2000.
<PAGE>
FINANCIAL HIGHLIGHTS
PERIODS ENDED
JUNE 30, DECEMBER 31, DECEMBER 31,
CLASS O SHARES 2000 1999 1998
NET ASSET VALUE, BEGINNING $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .026 .043 .048
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.026) (.043) (.048)
NET ASSET VALUE, ENDING $1.00 $1.00 $1.00
TOTAL RETURN 2.65% 4.38% 4.93%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME 5.26%(A) 4.28% 4.82%
TOTAL EXPENSES .79%(A) .82% .81%
EXPENSES BEFORE OFFSETS .79%(A) .82% .81%
NET EXPENSES .77%(A) .81% .79%
NET ASSETS, ENDING (IN THOUSANDS) $214,194 $229,754 $246,019
YEARS ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31,
CLASS O SHARES 1997 1996 1995
NET ASSET VALUE, BEGINNING $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .049 .047 .051
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.049) (.047) (.051)
NET ASSET VALUE, ENDING $1.00 $1.00 $1.00
TOTAL RETURN 5.00% 4.79% 5.22%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME 4.88% 4.69% 5.04%
TOTAL EXPENSES .82% .86% .89%
EXPENSES BEFORE OFFSETS .82% .86% .89%
NET EXPENSES .80% .85% .88%
NET ASSETS, ENDING (IN THOUSANDS) $232,025 $239,420 $241,150
<PAGE>
FINANCIAL HIGHLIGHTS
PERIODS ENDED
JUNE 30, DECEMBER 31, DECEMBER 31,
CLASS B SHARES 2000 1999 1998^
NET ASSET VALUE, BEGINNING $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .020 .031 .027
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.020) (.031) (.027)
NET ASSET VALUE, ENDING $1.00 $1.00 $1.00
TOTAL RETURN 2.02% 3.11% 2.72%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME 4.08%(A) 3.18% 3.28%(A)
TOTAL EXPENSES 6.70%(A) 8.09% 36.93%(A)
EXPENSES BEFORE OFFSETS 2.09%(A) 2.02% 2.02%(A)
NET EXPENSES 2.00%(A) 2.00% 2.00%(A)
NET ASSETS, ENDING (IN THOUSANDS) $261 $420 $74
PERIODS ENDED
JUNE 30, DECEMBER 31, DECEMBER 31,
CLASS C SHARES 2000 1999 1998^^
NET ASSET VALUE, BEGINNING $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .020 .031 .020
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.020) (.031) (.020)
NET ASSET VALUE, ENDING $1.00 $1.00 $1.00
TOTAL RETURN 2.03% 3.12% 2.06%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME 4.03%(A) 3.22% 3.35%(A)
TOTAL EXPENSES 3.39%(A) 4.75% 8.46%(A)
EXPENSES BEFORE OFFSETS 2.03%(A) 2.02% 2.02%(A)
NET EXPENSES 2.00%(A) 2.00% 2.00%(A)
NET ASSETS, ENDING (IN THOUSANDS) $649 $1,056 $339
<PAGE>
FINANCIAL HIGHLIGHTS
PERIODS ENDED
JUNE 30, DECEMBER 31, DECEMBER 31,
INSTITUTIONAL CLASS SHARES 2000 1999 1998^^^
NET ASSET VALUE, BEGINNING $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .028 .047 .015
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.028) (.047) (.015)
NET ASSET VALUE, ENDING $1.00 $1.00 $1.00
TOTAL RETURN 2.86% 4.84% 1.49%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME 5.57%(A) 4.72% 4.95%(A)
TOTAL EXPENSES .46%(A) .50% .43%(A)
EXPENSES BEFORE OFFSETS .39%(A) .38% .34%(A)
NET EXPENSES .37%(A) .37% .32%(A)
NET ASSETS, ENDING (IN THOUSANDS) $9,007 $19,679 $20,128
PERIODS ENDED
JUNE 30, DECEMBER 31,
CLASS T SHARES 2000 1999^^^^
NET ASSET VALUE, BEGINNING $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .025 .035
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.025) (.035)
NET ASSET VALUE, ENDING $1.00 $1.00
TOTAL RETURN 2.57% 3.59%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME 5.12%(A) 4.29%(A)
TOTAL EXPENSES .94%(A) .95%(A)
EXPENSES BEFORE OFFSETS .94%(A) .95%(A)
NET EXPENSES .93%(A) .94%(A)
NET ASSETS, ENDING (IN THOUSANDS) $99,382 $100,778
(A) ANNUALIZED
^ FROM APRIL 1,1998 INCEPTION
^^ FROM JUNE 1, 1998 INCEPTION
^^^ FROM SEPTEMBER 16, 1998 INCEPTION
^^^^ FROM MARCH 1, 1999 INCEPTION
<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
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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
WWW.CALVERT.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
TAXABLE BOND FUNDS
CSIF BOND PORTFOLIO
INCOME FUND
EQUITY FUNDS
CSIF MANAGED INDEX PORTFOLIO
CSIF EQUITY PORTFOLIO
CALVERT SOCIAL INDEX FUND
CAPITAL ACCUMULATION FUND
CWV INTERNATIONAL EQUITY FUND
NEW VISION SMALL CAP FUND
NEW AFRICA FUND
