Calvert Money Management Plus Tax-Free Portfolio
Semi-Annual Report
June 30, 1995
(Logo)
Investing with Visfion (TM)
Calvert Group
A member of fThe Acacia Group (R)
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 1000N
Bethesda, Maryland 20814
Registered, Certified or Overnight Mail:
Calvert Group
c/o NFDS, 6th Floor
1004 Baltimore
Kansas City, MO 64105-1807
Principal Underwriter:
Calvert Distributors, Inc.
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
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.
Semi-Annual Report-JUNE 30, 1995
MONEY MANAGEMENT PLUS TAX-FREE PORTFOLIO
Shareholders may recall receiving a proxy statement regarding the merger of
this Portfolio into Calvert Tax Free Reserves Money Market Portfolio. The
closing of this merger is expected to occur in the late summer.
Dear Investor:
The stock and bond markets soared during the first six months of 1995,
following a bleak 1994. Money market issues did not keep pace, as the
economy slowed and the Federal Reserve was able to relax its grip on
short-term market rates.
Stocks and bonds advanced as investors realized that the slowing pace of
economic growth made further interest rate hikes unlikely and a cut even
possible. In general, U.S. companies continued to post strong earnings,
which also worked to drive stock prices higher. Shortly after the close of
this reporting period, the Federal Reserve moved to lower rates by reducing
its target for the federal funds rate (the rate banks charge each other)
from 6% to 5.75%.
Performance and Strategy Review
After rising sharply in 1994, short-term interest rates fell slightly
during the period covered by this report. The Fund's 12-month annualized
yield was a bit higher than its year-ago level, due to the higher rates
available in the second half of 1994. The annualized compound dividend
yield for the 12-months ended June 30, 1995 was above the yield available
on an average of similar funds.
Our strategy remains to seek out the highest yields while maintaining
the utmost liquidity and safety of principal.
Chart 1: Compound Dividend Yield
A bar chart comparing the 12 months ended 6/30/95 with 6/30/94 for the
Money Management Plus Tax Free fund and the Lipper Tax-ExemptMoney Market
Funds Average.
Outlook
We believe the Fed will continue to have a neutral to easier policy
bias in reaction to mixed economic data. Stock and bond markets will likely
be volatile until a clearer picture of second and third quarter economic
activity forms.
While it's not likely that money market investors will see yields rise
as steeply as they did in 1994, the Money Management Plus Portfolio
continues to provide maximum principal stability and a competitive level of
tax-free income.
Sincerely,
(Signature)
David R. Rochat
Senior Vice President
July 19, 1995
Portfolio Statistics
Maturity Schedule
12/31/94 6/30/95
1-60 Days 90% 90%
61-120 Days 10% 7%
121-180 Days - -
181-360 Days - 3%
Weighted Average 12 Days 18 Days
Average Annual Total Returns
for periods ended 6/30/95
One Year 3.20%
Five Year 3.32%
Since Inception (10/84) 4.29%
Chart 2: Calvert Money Management Plus Tax-Free Portfolio
Change in value of a hypothetical $10,000 investment.
A line graph showing a hypothetical $10,000 investment in 6/85 growing to
$15,013 by 6/95.
Total returns assume reinvestment of dividends.
Past performance is no guarantee of future results.
<TABLE>
<CAPTION>
Money Management Plus Tax-Free Portfolio
Portfolio of Investments
June 30, 1995 (Unaudited)
Municipal Obligations
State/Principal
Amount Description Value Ratings <F1>
<C> <S> <C> <S>
Alabama (4.2%)
$3,000,000 Wynlakes Government Utility Authority VRDN,
4.50%, 5/1/06, LOC: Amsouth Bank <F2> $3,000,000 NR/A-1
Arizona (10.1%)
2,000,000 Glendale Industrial Development Authority VRDN,
4.45%, 1/1/20, CONF: Sumitomo Bank Ltd. <F2> 2,000,000 VMIG1/NR
2,675,000 Prescott Industrial Development Authority VRDN,
4.45%, 12/1/14, GA: Household Finance Corp. <F2> 2,675,000 NR/A-1
2,549,000 Tucson Industrial Development VRDN,
4.375%, 12/1/07,C/LOC: Mercury S&L <F2> 2,549,000 NR/A-1+
California (15.4%)
1,815,000 California General Obligation Bonds, 6.50%,
4/25/96, LOC: JP Morgan Securities 1,831,292 NR/NR
4,200,000 Los Angeles Regional Airport Lease Revenue VRDN,
5.05%,12/1/25, LOC: L/T Credit Bank of Japan <F2> 4,200,000 NR/A-2
2,000,000 Orange County Apartment Development Revenue
VRDN, 4.55%, 11/1/05, LOC: First Interstate
Bank Corp. <F2> 2,000,000 VMIG2/NR
800,000 Santa Ana Unified School District VRDN, 4.10%,
7/1/15, LOC: Sanwa Bank <F2> 800,000 VMG1/NR
700,000 Stockton County Nursing Home VRDN, 4.73%, 12/1/16,
LOC: Bank of California 700,000 NR/NR
1,500,000 Pasadena Community Development Authority VRDN,
5.15%, 11/15/17, LOC: Tokai Bank Ltd. <F2> 1,500,000 VMIG2/NR
Delaware (3.5%)
2,499,000 Delaware Health Facility Tender Option Certificates
VRDN, 4.20%, 10/1/05, TOA: Bankers Trust <F2> 2,499,000 Aa3/NR
District of Columbia (4.5%)
1,200,000 District of Columbia General Obligation VRDN, 4.70%,
6/1/03, LOC: Landesbank Hessen <F2> 1,200,000 VMIG1/A-1+
2,000,000 District of Columbia General Obligation VRDN, 4.70%,
6/1/03, LOC: Union Bank of Switzerland <F2> 2,000,000 VMIG1/A-1+
Florida (10.3%)
3,000,000 Hialeah Hospital Revenue VRDN, 4.25%, 2/1/14,
LOC: Bank of Montreal <F2> 3,000,000 VMIG1/NR
1,125,000 Manatee County Housing Finance Authority
VRDN, 4.50%, 12/1/07, LOC: Marine
Midland Bank <F2> 1,125,000 NR/A-2
600,000 Palm Beach County Industrial Development
Authority VRDN, 4.48%, 5/5/10, LOC: Bank
of California 600,000 NR/NR
2,500,000 Volusia Multi-Family Housing Revenue VRDN,
4.625%, 9/1/05, GA: Household Finance
Corp. <F2> 2,500,000 NR/A-1
125,000 Tampa Utility Tax & Special Revenue Authority
VRDN, 4.375%, 10/1/05, TOA: Bankers Trust <F2> 125,000 Aa3/NR
See notes to portfolio of investments.
Money Management Plus Tax-Free Portfolio
Portfolio of Investments (continued)
June 30, 1995 (Unaudited)
Municipal Obligations
State/Principal
Amount Description Value Ratings <F1>
Georgia (6.4%)
$ 1,600,000 Atlanta Multi-Family Housing VRDN, 4.50%,
12/1/08, LOC: Marine Midland Bank <F2> $1,600,000 NR/A-2
1,000,000 Athens Multi-Family Housing VRDN, 4.375%,
8/1/05, LOC: First National Bank of Chicago <F2> 1,000,000 VMIG1/NR
2,000,000 Clayton County Industrial Development Revenue
VRDN, 4.35%, 8/1/14, LOC: Chemical Bank <F2> 2,000,000 VMIG1/NR
Illinois (2.8%)
2,000,000 Chicago Multi-Family Housing Development
Finance Authority VRDN, 4.05%, 11/1/10, LOC:
Fleet National Bank <F2> 2,000,000 VMIG1/NR
Indiana (5.0%)
100,000 Jeffersonville Industrial Revenue VRDN, 4.35%,
8/2/99, LOC: Union Bank of Switzerland <F2> 100,000 NR/NR
2,000,000 Madison Economic Development VRDN, 5.40%,
8/1/17, LOC: Tokai Bank <F2> 2,000,000 A-1/NR
1,500,000 Newton County Industrial Development Authority,
VRDN 4.35%, 9/1/10, LOC: Lasalle Bank <F2> 1,500,000 NR/A-1+
Kentucky (9.2%)
2,000,000 Clark County Industrial Development Revenue
VRDN, 4.40%, 9/1/10, LOC: Union Bank of
Switzerland 2,000,000 Aa3/NR
1,500,000 Glasgow Industrial Revenue VRDN, 6.30%, 6/1/20,
LOC: National Westminster Bank <F2> 1,500,000 NR/NR
1,500,000 Kentucky Rural Economic Development Authority
VRDN, 4.40%, 10/1/16, LOC: PNC Bank of
Kentucky <F2> 1,500,000 Aa3/NR
1,600,000 Scott Industrial Development Revenue VRDN,
4.40%, 9/1/05, LOC: PNC Bank of Kentucky <F2> 1,600,000 Aa3/NR
Louisiana (2.2%)
1,545,000 Louisiana Multi-Family Housing VRDN, 4.90%,
12/1/25, LOC: Sumitomo T&B <F2> 1,545,000 VMIG2/A-2
Maryland (4.8%)
2,580,000 Baltimore County Economic Development Revenue
VRDN, 6.00%, 9/1/96, LOC: First National Bank
of Maryland 2,580,000 NR/NR
881,512 Ocean City Industrial Development VRDN, 5.85%,
7/1/13, LOC: First National Bank of Maryland 881,512 NR/NR
See notes to portfolio of investments.
Money Management Plus Tax-Free Portfolio
Portfolio of Investments (continued)
June 30, 1995 (Unaudited)
Municipal Obligations
State/Principal
Amount Description Value Ratings <F1>
Michigan (2.8%)
$2,000,000 Michigan Single Family Housing VRDN, 4.00%,
6/1/06, TOA: Citibank $2,000,000 NR/AA+
Minnesota (2.0%)
100,000 Cottage Grove Pollution Control VRDN, 4.59%,
8/1/12, GA: Minnesota Mining & Manufacturing <F2> 100,000 NR/A-1+
1,300,000 Minneapolis Multi-Family Housing VRDN,
4.90%, 12/1/14, LOC: Citibank <F2> 1,300,000 VMIG1/NR
New Jersey (1.4%)
1,000,000 New Jersey State Turnpike Authority VRDN,
3.85%, 1/1/18, LOC: Societe Generale <F2> 1,000,000 VMIG1/NR
Ohio (0.7%)
500,000 Lancaster Industrial Development VRDN, 6.75%,
3/1/08, LOC: Banque National De Paris 500,000 NR/NR
Oklahoma (4.1%)
400,000 Oklahoma Housing Finance Authority VRDN, 4.75%,
12/1/05, C/LOC: Binghampton Savings Bank <F2> 400,000 NR/A-1+
2,500,000 Oklahoma State Industrial Authority Revenue
Bonds, 3.75%, 9/12/95, BPA: Multibank 2,500,000 NR/A-1
Pennsylvania (7.2%)
2,000,000 Berks County Industrial Development Authority
VRDN, 4.65%, 9/1/10, LOC: Meridian Bank <F2> 2,000,000 VMIG1/NR
1,285,000 Montgomery County Industrial Development VRDN,
4.40%, 12/1/13, LOC: Dai-Ichi Kangyo Bank <F2> 1,285,000 NR/NR
100,000 Philadelphia Industrial Development Authority VRDN,
4.40%, 12/1/06, LOC: Pittsburgh National Bank <F2> 100,000 NR/NR
1,800,000 Philadelphia Multi-Family Housing VRDN, 4.60%,
12/1/09, LOC: Marine Midland Bank <F2> 1,800,000 NR/A-2
Tennessee (3.1%)
2,220,000 Smith County Industrial Development Board
VRDN, 5.03%, 1/1/10, LOC: First National Bank
Maryland 2,220,000 VMIG1/NR
TOTAL INVESTMENTS (Cost $71,315,804) <F3>
(99.7%) <F4> $71,315,804
See notes to portfolio of investments.
Money Management Plus Tax-Free Portfolio
Portfolio of Investments (continued)
June 30, 1995 (Unaudited)
Notes to Portfolio of Investments:
<FN>
<F1> Ratings: Moody's Investors Service, Inc.'s ratings of state and
municipal notes, in descending order of quality, are: MIG1, MIG2, and MIG3.
VMIG rating is the same as MIG rating but is designated for issues that
have periodic demand features. Moody's ratings of municipal bonds, in
descending order of quality, are: Aaa, Aa, A, and Baa. Moody's ratings of
tax-exempt commercial paper, in descending order of quality, are: P-1, P-2,
and P-3. Standard & Poor's ratings of municipal debt, in descending order -
of quality, are: AAA, AA, A, and BBB. Standard & Poor's ratings of
tax-exempt notes, in descending order of quality, are: SP-1, SP-2, and
SP-3. For variable rate obligations with a demand feature, S&P ratings are:
A-1+, A-1, A-2, A-3. Numerical modifiers and plus or minus indicate the
ranking of a security within its generic rating category. Moody's ratings
are indicated before Standard & Poor's in the portfolio of investments.
NR: Obligation is not rated by a commercial credit rating service, such as
Moody's Investors Service, Inc., or Standard & Poor's Corporation;
obligation has been determined to be of appropriate quality for the
Portfolio by Calvert Asset Management Company, Inc. the Investment Advisor.
*Obligation is escrowed to maturity in Treasury bills, Government agency
obligations, or commercial paper of high quality, is secured by an
irrevocable letter of credit from a bank with assets of one billion dollars
or more, or has guaranteed investment contracts with various insurance
companies, investment companies, or banks with assets of one billion
dollars or more.
<F2> These obligations have a daily or seven day tender at par, at holder's
option.
<F3> Cost of investments represents amortized cost and is substantially the
same for federal income tax purposes.
<F4> The percentages shown represent the percentage of the investments to
net assets.
<F5> Explanation of Guarantees
BPA: Bond-Purchase Agreement IA: Investment Agreement
CD: Certificate of Deposit INSUR: Insurance
LOC: Letter of Credit SURBD: Surety Bond
LOC L/T: Letter of Credit-Long Term REPO: Repurchase Agreement
C/LOC: Collateralized LOC TOA: Tender Option Agreement
GIC: Guaranteed Investment Contract TPG: Third Party Guarantee
GA: Guarantee Agreement
<F6> Abbreviations
VRDN: Variable Rate Demand Notes
</FN>
</TABLE>
Money Management Plus Tax-Free Portfolio
Statement of Assets and Liabilities
June 30, 1995 (Unaudited)
Assets
Investments in securities, at value - see
accompanying portfolio $71,315,804
Receivable for shares sold 98,029
Interest receivable 418,259
Other assets 11,644
Total assets 71,843,736
Liabilities
Payable to Bank 236,469
Payable to Calvert Asset Management Company, Inc. - <F2> Note B 47,271
Payable to Calvert Distributors, Inc. - <F2> Note B 20,665
Payable to Calvert Shareholder Services, Inc. - <F2> Note B 10,813
Payable to Calvert Administrative Services Co. - <F2> Note B 457
Payable for income distributions 1,735
Accrued expenses and other liabilities 8,671
Total liabilities 326,081
Net assets $71,517,655
Net Assets
Net assets consisting of:
Paid-in capital applicable to 71,661,821 outstanding
shares of beneficial interest, no par value
unlimited number of shares authorized) 71,537,416
Accumulated net investment income-net of distributions (19,779)
Accumulated realized gains/(losses)-net of distributions 18
Net assets $71,517,655
Net Asset Value
Net asset value, offering and redemption price per share
($71,517,655 divided by 71,661,821 shares) $1.00
See notes to financial statements.
Money Management Plus Tax-Free Portfolio
Statement of Operations
Six Months Ended June 30, 1995 (Unaudited)
Investment Income
Interest income $1,617,105
Expenses - <F2> Note B
Investment advisory fee 170,977
Transfer, dividend disbursing and shareholder servicing
agent's fee 65,389
Administrative services fees 2,640
Distribution plan expenses 119,684
Federal and state registration fees 6,909
Postage and delivery 9,300
Printing and stationery 26,598
Trustees' fees and expenses 2,843
Professional fees 6,247
Telephone 955
Sub-accounting services 8,350
Insurance 1,038
Miscellaneous expenses 4,066
Total expenses 424,996
Net Investment Income 1,192,109
Realized Gain (Loss) on Investments
Net realized gain (loss) 18
Net Increase (Decrease) in Net Assets
Resulting from Operations $1,192,127
Money Management Plus Tax-Free Portfolio
Statements of Changes in Net Assets
Six Months
Ended
June 30,1995 Year Ended
Increase (Decrease) in Net Assets (Unaudited) Dec. 31,1994
Operations
Net investment income $1,192,109 $ 1,786,025
Net realized gain (loss) on investments 18 (1,207)
Net Increase (Decrease) in Net
Assets Resulting from Operations 1,192,127 1,784,818
Distributions to shareholders
Net investment income (1,211,888) (1,820,580)
Capital share transactions - <F3> Note C 6,017,660 (14,634,253)
Total Increase (Decrease) in Net Assets 5,997,899 (14,670,015)
Net Assets
Beginning of period 65,519,756 80,189,771
End of period (including accumulated net
investment income - net of distributions
of $(19,779) and $0 for 1995 and 1994,
respectively.) $71,517,655 $65,519,756
See notes to financial statements.
Notes To Financial Statements (Unaudited)
<F1> Note A-Summary of Significant Accounting Policies
General: Money Management Plus Tax-Free Portfolio (the "Series") is a
series of Calvert Tax-Free Reserves (the "Fund"). The Fund is registered
under the Investment Company Act of 1940, as amended (the "Act"), as a
diversified, open-end management company. The Fund operates as a series
fund, issuing shares of beneficial interest in seven portfolios. The Fund
accounts separately for the assets, liabilities, and operations of each
series. The Series' shares are sold to the public without a sales charge.
Portfolio Valuation: Investments in the Series are carried at amortized
cost, which approximates market value.
Securities Transactions and Investment Income: Securities transactions are
recorded on a trade date basis. Interest income, including, where
applicable, amortization of premium and discount, is recorded on the
accrual basis. Realized gains and losses from securities transactions are
recorded on an identified cost basis.
Share Valuation, Dividends and Distributions to Shareholders: It is the
Fund's policy to maintain a constant net asset value of $1.00 per share for
the Series; the Fund has adopted certain investment, portfolio valuation
and dividend and distribution policies intended to enable it to do so. The
Series declares dividends of its net investment income on a daily basis and
distributes income monthly. Distributions to shareholders are recorded on
the ex-dividend date.
Federal Income Taxes: It is the policy of the Fund to continue to qualify
as a regulated investment company by complying with the provisions of the
Internal Revenue Code available to certain investment companies, and to
make distributions of taxable income and capital gains sufficient to
relieve it from all, or substantially all, federal income and excise taxes.
<F2> Note B-Investment Advisory and Other Transactions With Affiliates
The Fund's investment advisor is Calvert Asset Management Company, Inc.
("Advisor"), wholly-owned by Calvert Group, Ltd., which itself is an
indirect wholly-owned subsidiary of Acacia Mutual Life Insurance Company.
Under the Advisory Contract, the Advisor manages the investment and
reinvestment of the Fund's assets, subject to the direction and control of
the Trustees, pays the salaries and fees of the Trustees and executive
officers of the Fund who are affiliated with the Advisor, and may assume
and pay certain Fund advertising and promotional expenses. All other
operating expenses are paid by the Fund. For its services, the Advisor
receives an annual fee of 0.50% of the Series' average daily net assets up
to $500 million, 0.45% of the next $500 million of such assets, and 0.40%
of all such assets over $1 billion.
The Advisor has agreed to reimburse the Fund for each portfolio's operating
expenses (excluding brokerage, taxes, interest, and extraordinary items)
exceeding, on a pro rata basis, 2.5% of the Series' first $30 million of
average daily net assets, 2.0% of the Series' next $70 million of such
assets and 1.5% of such assets in excess of $100 million.
The Fund has entered into a Principal Underwriting Agreement with Calvert
Distributors, Inc. (the successor to Calvert Securities Corp. effective
April 1, 1995) ("CDI"), a wholly-owned subsidiary of Calvert Group, Ltd.
Pursuant to the agreement, CDI serves as a distributor and principal
underwriter for the Fund. Pursuant to Rule 12b-1 under the Investment
Company Act of 1940, the Fund has adopted a Distribution Plan which permits
the Fund to pay certain expenses associated with the distribution of its
shares. Such expenses may not exceed, on an annual basis, 0.35% of the
Series' average daily net assets.
Calvert Shareholder Services, Inc. ("CSSI"), a wholly-owned subsidiary of
Calvert Group, Ltd., acts as transfer, dividend disbursing and shareholder
servicing agent for the Fund. For these services CSSI receives an annual
fee from the Series' of $22 per account per year plus $1.60 per
transaction.
Calvert Administrative Services Company ("CASC"), a wholly-owned subsidiary
of Calvert Group, Ltd., provides certain administrative services to the
Fund, including the preparation of regulatory filings and shareholder
reports, the daily determination of its net asset value per share and
dividends, and its maintenance of the portfolio and general accounting
records. CASC receives a fee of $200,000 during the year for providing such
services. Such fees are allocated among the Portfolios of the Fund based
upon their relative net assets.
Certain officers and trustees of the Fund are "affiliated persons", as
defined in the Act, of the Advisor. Each trustee of the Fund who is not
affiliated with the Advisor serves on the Board of Trustees of other Funds
sponsored by the Advisor, receives an annual fee of $20,250 and a meeting
fee of $1,200 for each Board and Committee meeting attended. Such fees are
allocated among the funds based upon their relative net assets.
<F3> Note C-Net Assets
The change in net assets resulting from capital share transactions (at
$1.00 per share) for 1995 and 1994 is indicated below:
Six Months Year
Ended Ended
June 30,1995 Dec. 31,
(Unaudited) 1994
In dollars
Shares sold $64,435,489 $125,725,419
Reinvestment of dividends 1,206,368 1,820,580
Shares redeemed (59,624,197) (142,180,252)
$6,017,660 $(14,634,253)
Financial Highlights
Six Months
Ended Year Ended Year Ended
June 30, 1995 Dec. 31, Dec. 31,
(Unaudited) 1994 1993
Net asset value, beginning of period $1.00 $1.00 $1.00
Income from investment operations
Net investment income .018 .024 .021
Distributions to shareholders
Dividends from net investment income (.018) (.024) (.021)
Net asset value, end of period $1.00 $1.00 $1.00
Total return 1.78% 2.47% 2.10%
Ratio of expenses to average net assets 1.24%<F1> 1.18% 1.03%
Ratio of net investment income to
average net assets 3.49%<F1> 2.34% 2.07%
Net assets, end of period $71,517,655 $65,519,756 $80,189,771
Number of shares outstanding at end
of period (in thousands) 71,662 65,644 80,278
Year Ended Year Ended
Dec. 31, Dec. 31,
1992 1991
Net asset value, beginning of year $1.00 $1.00
Income from investment operations
Net investment income .028 .044
Distributions to shareholders
Dividends from net investment income (.028) (.044)
Net asset value, end of year $1.00 $1.00
Total return 2.87% 4.55%
Ratio of expenses to average net assets 1.02% .98%
Ratio of net investment income to
average net assets 2.84% 4.41%
Net assets, end of year $80,949,285 $78,683,315
Number of shares outstanding at end
of year (in thousands) 81,036 78,771
[FN]
<F1> Annualized
[/FN]
(Logo)
Investing with Vision (TM)
Calvert Group (R)
A member of Tfhe Acacia Group (R)
4550 Montgomery Avenue, Suite 1000N
Bethesda, Maryland 20814
