<PAGE>
Calvert
Tax-Free
Reserves
Annual
Report
December 31, 1995
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<PAGE>
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Suite 1000N
Bethesda, Maryland 20814
This report is intended to provide fund information to shareholders.
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<PAGE>
Annual Report-December 31, 1995
==========
CALVERT TAX-FREE RESERVES
Dear Investors:
The soft-landing theory became a reality during the twelve months ended
December 31, 1995. Gross Domestic Product (GDP) slowed to below 2% annualized,
based on estimates of fourth quarter data. The more sluggish pace of economic
growth kept inflation in check. Interest rates declined as the Federal Reserve
took steps to stimulate the economy during the last two quarters of 1995.
Municipal Rates
[GRAPH APPEARS HERE]
Market Summary
The stock and bond markets thrived in this economic climate. Investors poured
money into the stock market as companies continued to generate good earnings
despite the slowing economy. Stocks were also selected as an alternative to
bonds as yields on fixed-income investments declined. The Standard & Poor's
500/(R)/ Stock Index rose 34% for the year.
Bond investors benefited from a windfall of capital gains as yields fell.
Returns on bonds, generally expected to lag those on stocks, were as high as 30%
for long-term Treasuries. The average taxable money market fund returned
slightly over 5% for the year.
Municipal bond rates backed down in 1995, after rising steeply through 1994.
Returns on municipal bonds lagged taxable bonds, but were still near the high
end of their historical range. Talk of tax reform looks to have kept some
investors from taking advantage of munis' solid performance. Supply was thin as
state and local governments kept a tight rein on spending. This put some upward
pressure on municipal bond prices.
Performance and Strategy
Money Market Portfolio
After rising steeply throughout 1994, short-term interest rates fell in 1995.
The Money Market Portfolio's dividend yield (Class O shares) was above its year-
ago level because the drop in rates in 1995 did not push yields as low as they
had been for much of 1994. The Portfolio's yield was above the yield available
on an average of similar funds due to our slightly longer than average maturity.
We had lengthened maturity from about 16 days at year-end 1994 to about 38
days at
ANNUAL REPORT CALVERT TAX-FREE RESERVES - 1
<PAGE>
mid-year 1995 and then kept the Portfolio's maturity close to this level for the
balance of 1995. As rates continued to decline throughout 1995, the longer
maturity was positive for performance.
The Money Management Plus Tax-Free Portfolio became a part of the Tax-Free
Reserves family during this reporting period, and we welcome all new
shareholders. We will report fund performance separately, with the Tax-Free
Reserves Money Market Portfolio noted as Class O and the merged Money Management
Plus Portfolio noted as Class MMP.
[GRAPH APPEARS HERE]
Money Market Portfolio
Compound Dividend Yield
12 Months 12 Months 3 Months
Ended 12/31/94 Ended 12/31/95 Ended 12/31/95
-------------- -------------- --------------
Tax-Free Reserve Money Market
(Class O).................... 2.81% 4.02%
Tax-Free Reserve Money Market
(Class MMP).................. 0.79%
Lipper Tax-Exempt Money Market
Avg. ........................ 2.30% 3.31% 0.82%
Limited-Term Portfolio
Going into 1995, it was our opinion that interest rates were more likely to
remain stable or decline than to continue to move up. Accordingly, we took steps
to lengthen the Portfolio's weighted average maturity. Rates did in fact trend
lower, and the Portfolio's longer maturity had a positive impact on performance.
The Limited-Term Portfolio's benchmark is the Lipper Short Muni Debt Funds
Average, which includes funds with average maturities of up to three years. The
Limited-Term Portfolio's average maturity is at the low end of this range (no
longer than 365 days), which means we typically lag our peer group in an
environment of flat or declining rates and outperform when rates rise. In the
bear bond market of 1994, for example, the Limited-Term Portfolio was one of
only two municipal bond funds to post a positive 12-month total return,
according to Lipper Analytical Services.
Limited-Term Portfolio
Investment Performance
Periods Ended 12/31/95 6 Months 12 Months
-------------------------------------------------
Limited-Term Portfolio 2.27% 5.55%
Lipper Short Muni
Debt Funds Avg. 3.08% 7.43%
Investment performance is for Class A shares and does
not reflect the deduction of any front-end sales charge.
2 - CALVERT TAX-FREE RESERVES ANNUAL REPORT
<PAGE>
Long-Term Portfolio
In expectation of flat or declining interest rates, we took steps to lengthen
Portfolio maturity to about 20 years during the first half of 1995 and worked to
maintain this range during the second half of the year. For the 12-month period,
the Portfolio's return slightly lagged the return on an average of similar funds
because we moved cautiously to extend the Fund's maturity in January and
therefore did not participate fully in the bond market's rally.
Long-Term Portfolio
Investment Performance
Periods Ended 12/31/95 6 Months 12 Months
------------------------------------------------
Long-Term Portfolio 7.34% 16.05%
Lipper General
Muni Fund Avg. 7.13% 16.84%
Investment performance is for Class A shares and does
not reflect the deduction of any front-end sales charge.
In general, the Portfolio's returns tend to be in line with those of its
benchmark during bull bond markets and above them in bear markets, as we have
been successful in protecting principal against the full effects of price
declines. In 1994, for example, the Long-Term Portfolio's 12-month return was
423 basis points ahead of its benchmark, compared to 1995, where we lagged by
only 79 basis points. (A basis point is one hundredth of a percent.)
Outlook
The past 24 months in the bond market have been remarkable. Nineteen ninety-
four was one of the three worst markets since 1926, the earliest year for which
Ibbotson & Associates tracks bond market performance. Nineteen ninety-five was
one of the three strongest markets since 1926 and one of only two years in which
long-term Treasuries have returned over 30%. The strength of these bull and bear
markets is extreme, and the chance of their occurring, as they did, in
consecutive years is infinitesimally small. If there's a lesson for investors
here, it is that predicting the direction of the market is impossible and one
would do well to stick to a long-term investment plan rather than react to
short-term market swings. Those investors who held their course after a drubbing
in 1994 were amply rewarded in 1995.
Given the recent dramatic market moves, it's difficult to assess the outlook
for 1996. We see no reason to expect a bear market, but investors should not
anticipate returns as strong as 1995's. Continued corporate downsizing, cutbacks
in federal spending, weakened consumer psychology and the still sluggish housing
market will likely keep the economy soft. The Federal Reserve could respond with
additional rate cuts. We would not be surprised to see short-term rates fall
another 50 basis points by mid-year, with this action possibly occurring as
early as the first quarter.
ANNUAL REPORT CALVERT TAX-FREE RESERVES - 3
<PAGE>
We will be carefully monitoring the upcoming elections, especially Republican
and Democratic platforms regarding tax reform. After the elections, when we have
a clearer picture of the political landscape, we should be better able to assess
the likelihood of a change in the tax preference status of municipal securities.
In our opinion, investors have already discounted for some of the uncertainty
ahead, and the municipal bond market looks attractively valued. Right now, munis
are yielding about 87% to 90% of the 30-year Treasury, for a taxable equivalent
yield well above Treasuries.
We appreciate your investment in the Calvert Tax-Free Reserves Portfolios.
Sincerely,
/s/ David Rochat
David Rochat
Senior Vice President
January 17, 1996
Ratings Breakdown
==========
Money Market Portfolio
[PIE CHART APPEARS HERE]
First Tier.......... 86%
Second Tier......... 14%
Limited-Term Portfolio
[PIE CHART APPEARS HERE]
AAA/Aaa............. 15%
AA/Aa............... 8%
A/a................. 13%
BBB/Baa............. 35%
Cash Equivalents.... 29%
Long-Term Portfolio
[PIE CHART APPEARS HERE]
AAA/Aaa............. 28%
AA/Aa............... 23%
A/a................. 11%
NR.................. 16%
Cash Equivalents.... 5%
BBB/Baa............. 17%
NR: Obligation is not rated by a commercial credit rating service, such as
Moody's Investors Services, 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.
All securities in Calvert Group money market funds are eligible securities under
rule 2a-7 of the Investment Company Act of 1940. First Tier Securities are
eligible securities rated in the highest rating category for short-term debt
obligations by at least two of the Nationally Recognized Statistical Ratings
Organizations. Second Tier Securities are eligible securities not in the First
Tier.
4 - CALVERT TAX-FREE RESERVES ANNUAL REPORT
<PAGE>
Portfolio Statistics
==========
Weighted Average Maturity
6/30/95 12/31/95
-----------------------------------------------------------------
Tax-Free Reserves Money Market 38 days 27 days
Tax-Free Reserves Limited-Term 292 days 351 days
Tax-Free Reserves Long-Term 20 years 18 years
Money Market Yields
Seven-Day Compounded (Effective) 12/31/95
-----------------------------------------------------------------
Tax-Free Reserves Money Market (Class O) 4.87%
Tax-Free Reserves Money Market (Class MMP) 4.26%
SEC Yields
Class A Class C
Thirty Days Ended 12/31/95 12/31/95
-----------------------------------------------------------------
Tax-Free Reserves Limited-Term 4.16% 3.63%
Tax-Free Reserves Long-Term 4.85% 3.87%
Yields assume reinvestment of dividends.
Average Annual Total Returns
Since
Periods Ended 12/31/95 1 Year 5 Year 10 Year Inception
-----------------------------------------------------------------
Class A Shares
Tax-Free Reserves
Limited-Term (3/81) 3.40% 4.25% 5.37% 6.38%
Tax-Free Reserves
Long-Term (8/82) 11.68% 7.84% 7.74% 8.64%
Class C Shares
Tax-Free Reserves
Limited-Term (3/94) 4.86% NA NA 3.42%
Tax-Free Reserves
Long-Term (3/94) 14.51% NA NA 6.14%
ANNUAL REPORT CALVERT TAX-FREE RESERVES - 5
<PAGE>
Portfolio Statistics
==========
Calvert Tax-Free Reserves Money Market Portfolio
Change in value of a hypothetical $10,000 investment.
[GRAPH APPEARS HERE]
1/86............... $10,000
12/95.............. $15,459
Calvert Tax-Free Reserves Limited-Term Portfolio
Comparison of change in value of $10,000 investment.*
[GRAPH APPEARS HERE]
1/86 12/95
------- -------
CTFR Limited-Term........... $10,000 $16,874
Lehman Municipal Bd......... $10,000 $24,203
Lipper Short Muni Debt Ave.. $10,000 $17,951
Calvert Tax-Free Reserves Long-Term Portfolio
Comparison of change in value of $10,000 investment.*
[GRAPH APPEARS HERE]
1/86 12/95
------- -------
CTFR Long-Term.............. $10,000 $21,079
Lehman Municipal Bd......... $10,000 $24,203
* The Lehman Municipal Bond Index has a maturity of approximately 20 years,
which is comparable to that of the Long-Term Portfolio but much longer than that
of the Limited-Term Portfolio.
Total returns assume reinvestment of dividends and, for Class A shares, reflect
the deduction of each fund's maximum front-end sales charge of 2.00% for the
Limited-Term Portfolio and 3.75% for the Long-Term Portfolio. No sales charge
has been applied to the indices used for comparison. The value of an investment
in Class A (Class O for Money Market Portfolio) shares is plotted in the line
graphs. The value of an investment in Class C (Class MMP for Money Market
Portfolio) shares would be different. Past performance is no guarantee of future
returns.
6 - CALVERT TAX-FREE RESERVES ANNUAL REPORT
<PAGE>
Report of Independent Accountants
==========
To the Board of Trustees and Shareholders of Calvert Tax-Free Reserves:
We have audited the accompanying statements of net assets of Calvert Tax-Free
Reserves (comprised of the Money Market, Limited-Term, and Long-Term
Portfolios), as of December 31, 1995, the related statements of operations for
the year then ended, and statements of changes in net assets and financial
highlights for each of the two years in the period then ended. These financial
statements and financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits. The financial
highlights for each of the preceding years were audited by other auditors whose
report dated January 31, 1994 expressed an unqualified opinion thereon.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of investments owned as of
December 31, 1995, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Calvert Tax-Free Reserves as of December 31, 1995, the results of their
operations for the year then ended, and the changes in their net assets and the
financial highlights for each of the two years in the period then ended, in
conformity with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Baltimore, Maryland
February 9, 1996
ANNUAL REPORT CALVERT TAX-FREE RESERVES - 7
<PAGE>
Calvert Tax-Free Reserves
Money Market
Statement of Net Assets
December 31, 1995
==========
<TABLE>
<CAPTION>
Principal
Amount Value
- ------------------------------------------------------------------------------------------------------------
<C> <S> <C>
Municipal Obligations (98.0%)
Alabama (1.4%)
$3,600,000 Alabama Multi-Family Housing Finance Authority VRDN,
5.25%, 12/1/03, LOC: Amsouth Bank.......................................... $ 3,600,000
560,000 Alabama Multi-Family Housing Finance Authority, Series A Revenue
VRDN, 5.45%, 4/1/24, LOC: Southtrust Bank, AL.............................. 560,000
4,750,000 Alabama Industrial Development Authority Revenue VRDN, 5.55%, 9/1/04,
LOC: Southtrust Bank, AL................................................... 4,750,000
4,000,000 Auburn Industrial Development Board Revenue VRDN, Series A, 7.35%,
12/1/16, LOC: Daiwa Bank................................................... 4,000,000
6,995,000 State Industrial Development Authority Revenue VRDN, 5.55%, 11/1/14,
LOC: Southtrust Bank, AL................................................... 6,995,000
4,000,000 Wynlakes Government Utility Authority Revenue VRDN, 5.25%, 5/1/06,
LOC: Amsouth Bank.......................................................... 4,000,000
Arizona (6.2%)
45,000,000 Apache County Industrial Development Authority, Series B Revenue
VRDN, 5.45%, 10/1/21, LOC: Mitsubishi Bank, Ltd. .......................... 45,000,000
2,050,000 Casa Grande Industrial Development Authority Revenue VRDN, 6.125%,
9/1/07, LOC: Banque National De Paris...................................... 2,050,000
7,600,000 Glendale Industrial Development Authority Revenue VRDN, 5.40%,
1/1/20, LOC: Sumitomo Bank Ltd. ........................................... 7,600,000
5,415,000 Maricopa County Industrial Development Authority Revenue VRDN,
5.55%, 10/1/08, C/LOC: Great American FSB.................................. 5,415,000
10,100,000 Maricopa County Pollution Control Revenue VRDN, 5.25%, 12/1/14,
LOC: Credit Suisse......................................................... 10,100,000
5,000,000 Maricopa County Pollution Control Revenue VRDN, 4.65%, 5/1/29,
LOC: Bank of America....................................................... 5,000,000
3,000,000 Maricopa County Pollution Control Revenue VRDN, 5.30%, 7/1/14,
LOC: Citibank.............................................................. 3,000,000
9,900,000 Pinal County Industrial Development Authority Revenue VRDN, 5.35%,
12/1/05, LOC: Industrial Bank of Japan..................................... 9,900,000
4,000,000 Prescott Industrial Development Authority Revenue VRDN, 4.50%,
12/1/14, GA: Household Finance Corp. ...................................... 4,000,000
4,200,000 Prescott Industrial Development Authority Revenue VRDN, 4.30%,
12/1/14, GA: Household Finance Corp. ...................................... 4,200,000
13,800,000 Tucson Industrial Development Revenue VRDN, 5.375%, 12/1/07,
C/LOC: Mercury S&L......................................................... 13,800,000
California (28.4%)
8,700,000 California Educational Facilities Authority Revenue VRDN,
5.85%, 10/1/09, LOC: Long Term Credit Bank of Japan........................ 8,700,000
31,815,000 California General Obligation Bonds, 6.50%, 4/25/96,
TOA: J.P. Morgan........................................................... 31,917,568
12,450,000 California State Floating Rate Notes, 4.00%, 4/25/96......................... 12,450,000
</TABLE>
8 - CALVERT TAX-FREE RESERVES ANNUAL REPORT
<PAGE>
Calvert Tax-Free Reserves
Money Market
Statement of Net Assets (Continued)
December 31, 1995
==========
<TABLE>
<CAPTION>
Principal
Amount Value
- ------------------------------------------------------------------------------------------------------------
<C> <S> <C>
California (Cont'd)
$8,000,000 California Housing Finance Agency Revenue VRDN, 4.25%,
8/1/17, TOA: Bank of America............................................... $ 8,000,000
12,000,000 California Housing Finance Agency Revenue VRDN, 4.25%,
8/1/15, TOA: Bank of America............................................... 12,000,000
1,500,000 California Pollution Control Financing Authority Industrial Development
Revenue VRDN, 5.70%, 1/15/04, LOC: Sumitomo T&B............................ 1,500,000
8,085,000 California Valleys Housing Finance Authority Guaranteed Mortgage
Obligation, Series A, Revenue VRDN, GNMA Collateral, 5.75%,
7/1/25, LOC: Sumitomo Bank, Ltd. .......................................... 8,085,000
8,900,000 Fresno Multi-Family Housing Revenue VRDN, 6.50%, 5/1/15, LOC:
Tokai Bank, Ltd. .......................................................... 8,900,000
4,000,000 Hemet Multi-Family Housing Authority Revenue VRDN, 5.55%, 7/1/06,
C/LOC: Mercury S&L......................................................... 4,000,000
1,600,000 Irvine Ranch Water District General Obligation Revenue VRDN,
6.00%, 4/1/33, LOC: Bank of America........................................ 1,600,000
10,900,000 Irvine Public Facilities Revenue VRDN, 5.25%, 11/1/10, LOC:
National Westminster Bank.................................................. 10,900,000
5,700,000 Lancaster Redevelopment Agency Multi-Family Housing Authority Revenue
VRDN, 5.375%, 11/1/04, LOC: Household Federal Savings...................... 5,700,000
950,000 Lancaster Multi-Family Housing Revenue VRDN, 5.60%, 5/1/17, C/LOC:
Mercury S&L................................................................ 950,000
13,395,000 Los Angeles County Community Redevelopment Agency Revenue
VRDN, 5.35%, 12/1/05, LOC: Industrial Bank of Japan........................ 13,395,000
15,000,000 Los Angeles County Community Redevelopment Agency Revenue VRDN,
6.30%, 12/1/10, LOC: Tokai Bank, Ltd. ..................................... 15,000,000
21,900,000 Los Angeles County Community Redevelopment Agency Revenue VRDN,
5.75%, 4/1/09, LOC: Tokai Bank, Ltd. ...................................... 21,900,000
19,100,000 Los Angeles County Tax Revenue Anticipation Notes, Series A, 4.50%,
7/1/96, LOC: Bank of America............................................... 19,160,557
2,500,000 Los Angeles County Industrial Development Board Revenue VRDN,
5.75%, 7/1/14, LOC: Tokai Bank, Ltd. ...................................... 2,500,000
3,000,000 Los Angeles County Transportation Commission, Series B34 Revenue
VRDN, 5.75%, 7/1/05, MBIA Insured, TOA: Sakura Bank, Ltd. ................. 3,000,000
3,000,000 Los Angeles County Transportation Commission, Series B35 Revenue
VRDN, 5.75%, 7/1/05, MBIA Insured, TOA: Sakura Bank, Ltd. ................. 3,000,000
3,000,000 Los Angeles County Transportation Commission, Series B36 Revenue
VRDN, 5.75%, 7/1/05, MBIA Insured, TOA: Sakura Bank, Ltd. ................. 3,000,000
2,890,000 Los Angeles County Transportation Commission, Series B37 Revenue
VRDN, 5.75%, 7/1/05, MBIA Insured.......................................... 2,890,000
200,000 Oceanside Multi-Family Housing Revenue VRDN, 5.375%, 12/1/07,
C/LOC: Western Federal S&L................................................. 200,000
16,900,000 Orange County Apartment Development Revenue VRDN, 4.64%,
11/1/08, LOC: Tokai Bank, Ltd. ............................................ 16,900,000
</TABLE>
ANNUAL REPORT CALVERT TAX-FREE RESERVES - 9
<PAGE>
Calvert Tax-Free Reserves
Money Market
Statement of Net Assets (Continued)
December 31, 1995
==========
<TABLE>
<CAPTION>
Principal
Amount Value
- ------------------------------------------------------------------------------------------------------------
<C> <S> <C>
California (Cont'd)
$8,500,000 Orange County Apartment Development Revenue VRDN, 5.50%,
3/1/07, LOC: Tokai Bank, Ltd. ............................................. $ 8,500,000
9,550,000 Orange County Apartment Development Revenue VRDN, 5.50%, 3/1/07,
LOC: Tokai Bank, Ltd. ..................................................... 9,550,000
10,000,000 Orange County Apartment Development Revenue VRDN, 5.50%, 3/1/07,
LOC: Tokai Bank, Ltd. ..................................................... 10,000,000
19,500,000 Orange County Apartment Development Revenue VRDN, 5.40%, 4/1/06,
LOC: Mitsubishi Bank, Ltd. ................................................ 19,500,000
12,400,000 Orange County Apartment Development Revenue VRDN, 6.65%, 11/1/09,
LOC: Tokai Bank, Ltd. ..................................................... 12,400,000
15,400,000 Orange County Apartment Development Revenue VRDN, 6.65%, 11/1/09,
LOC: Tokai Bank, Ltd. ..................................................... 15,400,000
1,800,000 Orange County Apartment Development Revenue VRDN, 5.55%, 11/1/07,
LOC: Mitsubishi Bank, Ltd. ................................................ 1,800,000
9,400,000 Orange County Apartment Development Revenue VRDN, 5.55%, 11/1/08,
LOC: Banque Paribas........................................................ 9,400,000
3,300,000 Orange County Apartment Development Revenue VRDN, 6.80%,
4/1/24, LOC: Tokai Bank, Ltd. ............................................. 3,300,000
12,750,000 Orange County Apartment Development Revenue VRDN, 5.50%,
11/1/05, LOC: First Interstate Bancorp..................................... 12,750,000
21,000,000 Orange County Apartment Development Revenue VRDN, 5.50%,
11/1/05, LOC: First Interstate Bancorp..................................... 21,000,000
18,200,000 Orange County Housing Authority Revenue VRDN, 5.32%, 12/1/07,
LOC: Bank of Tokyo, Ltd. .................................................. 18,200,000
16,800,000 Orange County Housing Authority Revenue VRDN, 5.50%, 12/1/09,
LOC: Tokai Bank, Ltd. ..................................................... 16,800,000
500,000 Orange County Sanitation Districts Nos. 1, 2, and 3 Certificates of
Participation VRDN, 5.05%, 8/1/13, AMBAC Insured........................... 500,000
4,685,714 Palmdale School District Project Lease VRDN, 5.75%, 12/13/10,
LOC: National Westminster Bank............................................. 4,685,714
3,000,000 Riverside Multi-Family Housing Authority Revenue VRDN, 5.625%,
12/1/05, LOC: Household Federal Savings.................................... 3,000,000
3,200,000 Riverside Multi-Family Housing Authority Revenue VRDN, 6.30%,
6/1/05, LOC: Tokai Bank, Ltd. ............................................. 3,200,000
1,090,000 Riverside Multi-Family Housing Authority Revenue VRDN, 6.40%,
6/1/09, LOC: Tokai Bank, Ltd. ............................................. 1,090,000
4,335,000 Sacramento Yolo District Improvement Lease Revenue VRDN, 5.00%,
10/1/22, LOC: Tokai Bank................................................... 4,335,000
28,000,000 San Bernadino County Multi-Family Housing Authority Revenue VRDN,
6.00%, 5/1/15, IA: Escrowed/T-Bills........................................ 28,000,000
1,500,000 San Bernadino County Multi-Family Housing Authority Revenue VRDN,
6.35%, 8/1/05, LOC: Tokai Bank, Ltd. ...................................... 1,500,000
3,850,000 San Bernadino County Multi-Family Housing Authority Revenue VRDN,
5.375%, 6/1/05, LOC: Household Federal Savings............................. 3,850,000
</TABLE>
10 - CALVERT TAX-FREE RESERVES ANNUAL REPORT
<PAGE>
Calvert Tax-Free Reserves
Money Market
Statement of Net Assets (Continued)
December 31, 1995
==========
<TABLE>
<CAPTION>
Principal
Amount Value
- ------------------------------------------------------------------------------------------------------------
<C> <S> <C>
California (Cont'd)
$10,150,000 San Diego Multi-Family Housing Authority Revenue VRDN, 5.10%,
8/1/15, LOC: Bank of Tokyo, Ltd. .......................................... $10,150,000
26,860,000 San Francisco Multi-Family Housing Authority Revenue VRDN,
5.75%, 10/1/00, LOC: Mitsubishi T&B........................................ 26,860,000
3,825,000 Santa Ana Multi-Family Housing Revenue VRDN, 5.65%, 12/1/16, LOC:
Tokai Bank, Ltd. .......................................................... 3,825,000
4,900,000 Santa Ana Housing Authority Revenue VRDN, 5.65%, 12/1/07, C/LOC:
Mercury S&L................................................................ 4,900,000
700,000 Stockton Industrial Development Authority Revenue VRDN, 4.2625%,
12/1/16, LOC: Bank of California........................................... 700,000
1,000,000 Santa Ana Industrial Development Authority Revenue VRDN, 5.225%,
11/1/05, C/LOC: Mercury S&L................................................ 1,000,000
2,975,000 Union City Housing Mortgage Revenue VRDN, 5.65%, 10/1/11, LOC:
Mitsubishi T&B............................................................. 2,975,000
5,000,000 Union City Multi-Family Housing Authority Revenue VRDN, 5.10%,
10/1/07, LOC: Sumitomo Bank, Ltd. ......................................... 5,000,000
22,600,000 Victor Valley Community College Revenue VRDN, 5.65%, 11/1/24, GA:
Anchor National Life....................................................... 22,600,000
3,000,000 Victorville Multi-Family Housing Authority Revenue VRDN, 5.55%,
12/1/15, C/LOC: Redland S&L................................................ 3,000,000
Colorado (0.6%)
8,500,000 City and County of Denver Multi-Family Housing Finance Authority,
Revenue VRDN, 5.20%, 12/15/14, LOC: Sumitomo T&B........................... 8,500,000
2,150,000 Lakewood Industrial Development Authority Revenue VRDN, 4.80%,
8/1/07, LOC: West One Bank................................................. 2,150,000
Connecticut (0.1%)
1,260,000 Connecticut State Health and Education Facilities Authority Revenue
VRDN, 4.05%, 2/1/09, LOC: Barclays Bank, PLC............................... 1,260,000
1,275,500 Connecticut State Development Authority Revenue VRDN, 4.05%, 6/1/08,
LOC: Barclays Bank, PLC.................................................... 1,275,500
District of Columbia (3.2%)
5,300,000 D.C. Tender Option-Custodial Receipt, Series B40 VRDN, 5.125%,
6/1/03, FSA Insured........................................................ 5,300,000
5,450,000 D.C. Tender Option-Custodial Receipt, Series B41 VRDN, 5.25%, 6/1/03,
AMBAC Insured.............................................................. 5,450,000
5,450,000 D.C. Tender Option-Custodial Receipt, Series B42 VRDN, 5.25%, 6/1/03,
AMBAC Insured.............................................................. 5,450,000
7,710,000 D.C. Tender Option-Custodial Receipt, Series B43 VRDN, 5.25%, 6/1/05,
MBIA Insured............................................................... 7,710,000
7,400,000 D.C. Series B VRDN, 6.00%, 6/1/03, LOC: Union Bank of
Switzerland................................................................ 7,400,000
</TABLE>
ANNUAL REPORT CALVERT TAX-FREE RESERVES - 11
<PAGE>
Calvert Tax-Free Reserves
Money Market
Statement of Net Assets (Continued)
December 31, 1995
==========
<TABLE>
<CAPTION>
Principal
Amount Value
- ------------------------------------------------------------------------------------------------------------
<C> <S> <C>
District of Columbia (Cont'd)
$18,000,000 D.C. Recovery, Series B3 VRDN, 5.30%, 6/1/03, LOC: Landesbank
Hessen Girozentrale........................................................ $18,000,000
8,390,000 D.C. Multi-Family Housing Authority VRDN, 5.30%, 12/1/05, LOC:
Sumitomo Bank, Ltd. ....................................................... 8,390,000
Delaware (0.3%)
5,020,000 Delaware State Economic Development Authority Revenue VRDN,
5.375%, 11/1/99, LOC: Sumitomo Bank, Ltd. ................................. 5,020,000
Florida (4.8%)
75,000 Dade County Industrial Development Authority Revenue VRDN,
3.75%, 1/1/16, LOC: Marine Midland Bank.................................... 75,000
8,800,000 Florida Housing Finance Agency Revenue VRDN, 5.70%, 7/1/23,
LOC: Heller Financial...................................................... 8,800,000
48,140,000 Florida Housing Finance Agency Revenue VRDN, 5.59%, 7/1/22, LOC:
Sumitomo T&B............................................................... 48,140,000
13,345,000 Hialeah Hospital Authority Revenue VRDN, 5.40%, 2/1/14, LOC:
Bank of Montreal........................................................... 13,345,000
6,025,000 Manatee County Housing Finance Authority Revenue VRDN, 5.50%,
12/1/07, LOC: Marine Midland Bank.......................................... 6,025,000
4,980,000 Palm Beach County Industrial Development Authority Revenue VRDN,
4.0125%, 5/5/10, LOC: Bank of California................................... 4,980,000
4,000,000 Volusia County Multi-Family Housing Authority Revenue VRDN,
5.625%, 9/1/05, GA: Household Financial Corp. ............................. 4,000,000
Georgia (3.7%)
2,000,000 Athens Multi-Family Housing Revenue VRDN, 5.375%, 8/1/05,
LOC: First Bank, N.A. ..................................................... 2,000,000
14,600,000 Atlanta Urban Residential Finance Authority Multi-Family Housing
Mortgage Revenue VRDN, 5.50%, 12/1/08, LOC:
Marine Midland Bank........................................................ 14,600,000
9,500,000 Clayton County Industrial Development Authority Revenue VRDN,
5.40%, 8/1/14, LOC: Chemical Bank.......................................... 9,500,000
7,900,000 Columbus Downtown Development Authority Revenue VRDN, 5.45%,
8/1/15, LOC: Columbus B&T.................................................. 7,900,000
7,470,000 De Kalb County Multi-Family Housing Finance Authority Revenue
VRDN, 5.30%, 11/1/15, LOC: Amsouth Bank.................................... 7,470,000
7,000,000 Jackson County Industrial Development Authority Revenue VRDN,
5.65%, 12/1/15, LOC: Industrial Bank of Japan.............................. 7,000,000
2,620,000 Jackson County Industrial Development Authority Revenue VRDN,
5.65%, 12/1/24, LOC: Barclays Bank, PLC.................................... 2,620,000
7,470,000 Paulding County Industrial Development Authority Revenue VRDN,
5.55%, 12/01/09, LOC: National Bank of Detroit............................. 7,470,000
6,950,000 Peachtree City Industrial Development Authority Revenue VRDN, 6.00%,
10/1/08, LOC: Union Bank of Finland........................................ 6,950,000
</TABLE>
12 - CALVERT TAX-FREE RESERVES ANNUAL REPORT
<PAGE>
Calvert Tax-Free Reserves
Money Market
Statement of Net Assets (Continued)
December 31, 1995
==========
<TABLE>
<CAPTION>
Principal
Amount Value
- ------------------------------------------------------------------------------------------------------------
<C> <S> <C>
Hawaii (0.8%)
$14,500,000 Hawaii Department of Budget and Finance Special Purpose Mortgage
Revenue VRDN, 5.30%, 12/1/21, LOC: Bank of Tokyo, Ltd. .................... $14,500,000
Illinois (6.4%)
7,850,000 Carol Stream Multi-Family Housing Revenue, 5.65%, 8/1/23, LOC: Heller
Financial.................................................................. 7,850,000
22,600,000 Chicago Multi-Family Housing Development Finance Authority Revenue
VRDN, 5.20%, 11/1/10, LOC: Fleet National Bank............................. 22,600,000
10,000,000 Chicago Multi-Family Housing Development Finance Authority Revenue
VRDN, 3.80%, 11/1/10, LOC: Fleet National Bank............................. 10,000,000
10,100,000 Chicago Airport Authority O'Hare Airport Revenue VRDN, 5.00%,
12/1/17, LOC: Long Term Credit Bank of Japan............................... 10,100,000
12,100,000 Illinois Educational Facilities Authority Revenue VRDN, 5.40%, 1/1/18,
LOC: Sumitomo Bank, Ltd. .................................................. 12,100,000
2,800,000 Illinois Development Finance Authority Revenue VRDN, 6.00%, 11/1/02,
LOC: American National B&T................................................. 2,800,000
1,000,000 Illinois Development Finance Authority Revenue VRDN, 5.225%, 1/1/09,
LOC: Industrial Bank of Japan.............................................. 1,000,000
2,225,000 Illinois Development Finance Authority, Series B Revenue VRDN, 5.50%,
1/1/10, LOC: American National B&T......................................... 2,225,000
3,400,000 Illinois Development Finance Authority, Series A Revenue VRDN, 5.50%,
1/1/10, LOC: American National B&T......................................... 3,400,000
6,410,000 Illinois Industrial Development Finance Authority Revenue VRDN,
5.90%, 7/1/02, LOC: American National B&T.................................. 6,410,000
3,000,000 Illinois Industrial Development Finance Authority Revenue VRDN,
6.00%, 9/2/05, LOC: American National B&T.................................. 3,000,000
5,600,000 Illinois Development Finance Authority Revenue VRDN, 5.40%,
12/1/18, LOC: LaSalle Bank................................................. 5,600,000
6,000,000 Illinois Health Facilities Authority Revenue VRDN, 5.20%, 8/1/15, LOC:
First National Bank of Chicago............................................. 6,000,000
7,980,000 Illinois Health Facilities Authority Revenue VRDN, 5.55%, 7/1/12, LOC:
First S&L.................................................................. 7,980,000
4,755,000 Illinois Housing Development Authority Revenue VRDN, 5.60%, 2/1/24,
LOC: Sumitomo, Bank, Ltd. ................................................. 4,755,000
2,000,000 North Aurora Industrial Development Revenue VRDN, 5.40%, 2/1/10,
LOC: LaSalle Bank.......................................................... 2,000,000
3,700,000 Southwestern Illinois Industrial Development Authority Revenue VRDN,
5.50%, 9/1/10, LOC: Meridian Bank.......................................... 3,700,000
2,280,000 Winnebago County Industrial Development Authority Revenue VRDN,
6.035%, 12/1/06, LOC: Bank of Nova Scotia................................. 2,280,000
Indiana (1.2%)
8,420,000 Lawrence Economic Development Authority Revenue VRDN, 5.65%,
6/1/24, LOC: Heller Financial.............................................. 8,420,000
</TABLE>
ANNUAL REPORT CALVERT TAX-FREE RESERVES - 13
<PAGE>
Calvert Tax-Free Reserves
Money Market
Statement of Net Assets (Continued)
December 31, 1995
==========
<TABLE>
<CAPTION>
Principal
Amount Value
- ------------------------------------------------------------------------------------------------------------
<C> <S> <C>
Indiana (Cont'd)
$ 6,200,000 Madison Economic Development Authority Revenue VRDN, 5.85%,
8/1/17, LOC: Tokai Bank, Ltd............................................... $ 6,200,000
3,000,000 Newton County Economic Development Authority Revenue VRDN,
5.40%, 9/1/10, LOC: LaSalle Bank........................................... 3,000,000
4,500,000 South Bend Multi-Family Housing Authority Revenue VRDN, 5.60%,
10/1/09, LOC: Society Bank of Cleveland.................................... 4,500,000
Iowa (0.7%)
1,600,000 Davenport Industrial Development Authority Revenue VRDN, 6.035%,
12/1/06, LOC: Bank of Nova Scotia.......................................... 1,600,000
10,000,000 Iowa School Corps, Series B Warrant Certificates, 5.75%, 2/1/96, INSUR:
Capital Guaranty........................................................... 10,006,064
Kansas (1.0%)
6,675,000 Kansas City Multi-Family Housing Authority Revenue VRDN, 5.35%,
6/1/15, LOC: First Bank, N.A............................................... 6,675,000
11,075,000 Shawnee Multi-Family Housing Authority Revenue VRDN, 5.60%,
2/1/24, LOC: Heller Financial.............................................. 11,075,000
Kentucky (1.6%)
4,000,000 Bowling Green Industrial Development Authority Revenue VRDN, 6.25%,
12/1/96, LOC: Long Term Credit Bank of Japan............................... 4,000,000
3,500,000 Glasgow Industrial Development Authority Revenue VRDN, 5.95%,
6/1/20, LOC: National Westminster Bank..................................... 3,500,000
2,200,000 Jefferson County Industrial Board Revenue VRDN, 5.50%, 12/1/06, LOC:
PNC Bank, KY............................................................... 2,200,000
600,000 Jefferson County Industrial Development Board VRDN, 5.50%, 6/1/99,
LOC: PNC Bank, KY.......................................................... 600,000
2,300,000 Kentucky Rural Economic Development Authority Revenue VRDN,
5.50%, 10/1/16, LOC: PNC Bank, KY.......................................... 2,300,000
3,000,000 Ohio County Pollution Control Revenue VRDN, 5.45%, 10/1/15, LOC:
Chemical Bank.............................................................. 3,000,000
9,500,000 Richmond Industrial Development Authority Revenue VRDN, 5.30%,
4/1/20, LOC: Seattle First National........................................ 9,500,000
1,500,000 Scott County Industrial Development Board Revenue VRDN, 5.50,
9/1/05, LOC: PNC Bank, KY.................................................. 1,500,000
1,500,000 Walton Industrial Development Authority Revenue VRDN, 6.25%,
11/1/96, LOC: Asahi Bank................................................... 1,500,000
Louisiana (1.4%)
8,000,000 Calcasieu Parish General Obligation Bonds, School District 28, 4.85%,
3/1/96..................................................................... 8,001,908
9,430,000 Louisiana Public Facilties Hospital Authority Revenue VRDN, 4.85%,
12/1/00, MBIA Insured...................................................... 9,430,000
</TABLE>
14 - CALVERT TAX-FREE RESERVES ANNUAL REPORT
<PAGE>
Calvert Tax-Free Reserves
Money Market
Statement of Net Assets (Continued)
December 31, 1995
==========
<TABLE>
<CAPTION>
Principal
Amount Value
- ------------------------------------------------------------------------------------------------------------
<C> <S> <C>
Louisiana (Cont'd)
$7,900,000 Plaquemines Port Harbor and Terminal District Port Facilities Revenue
VRDN, 4.50%, 3/15/06, LOC: Morgan Guaranty Trust........................... $ 7,900,000
Maine (1.0%)
4,000,000 Biddeford Energy Recovery Revenue VRDN, 3.90%, 7/1/07, LOC:
Toronto Dominion Bank, Ltd. ............................................... 4,000,000
7,490,000 Orrington Resource Recovery Revenue VRDN, 5.875%, 5/1/03, LOC:
Bankers Trust.............................................................. 7,490,000
6,040,000 Orrington Resource Recovery Revenue VRDN, 6.125%, 5/1/03, LOC:
Bankers Trust.............................................................. 6,040,000
Maryland (1.5%)
3,210,000 Anne Arundel County Industrial Development Board Revenue VRDN,
5.69%, 5/1/02, LOC: First National Bank of Maryland........................ 3,210,000
2,562,330 Baltimore County Economic Development Authority Revenue VRDN,
5.65%, 9/1/96, LOC: First National Bank of Maryland........................ 2,562,330
780,000 Maryland Economic Development Corporation Revenue VRDN, 5.30%,
6/1/20, LOC: NationsBank................................................... 780,000
1,500,000 Maryland Economic Development Corporation Revenue VRDN, 5.60%,
11/1/02, LOC: First National Bank of Maryland.............................. 1,500,000
14,020,000 Maryland Health and Higher Education Facilities Authority Revenue
VRDN, 5.25%, 7/1/14, LOC: First National Bank of Maryland.................. 14,020,000
4,296,176 Ocean City Industrial Development Board Revenue VRDN, 5.525%,
7/1/13, LOC: First National Bank of Maryland............................... 4,296,176
Massachusetts (2.5%)
1,250,000 Hudson Industrial Development Authority Revenue VRDN, 4.2625%,
10/1/13, LOC: FNB Boston................................................... 1,250,000
14,980,000 Massachusetts Bay Transportation Authority, Series A Notes, 5.50%,
3/1/96..................................................................... 15,000,996
1,650,000 Massachusetts State Industrial Finance Authority Revenue VRDN,
4.0125%, 11/3/99, LOC: FNB Boston.......................................... 1,650,000
1,450,000 Massachusetts State Industrial Finance Authority Revenue VRDN,
4.2625%, 10/1/00, LOC: FNB Boston.......................................... 1,450,000
5,200,000 Massachusetts State Industrial Finance Authority Revenue VRDN,
4.2625%, 8/1/14, LOC: FNB Boston........................................... 5,200,000
19,400,000 Massachusetts State Industrial Finance Authority Revenue VRDN, 6.20%,
3/15/04, LOC: Fuji Bank, Ltd. ............................................. 19,400,000
1,000,000 New Bedford Industrial Development Authority Revenue VRDN,
4.2625%, 10/1/97, LOC: FNB Boston.......................................... 1,000,000
Michigan (0.4%)
2,675,000 Michigan Housing Development Authority Limited Obligation Revenue
VRDN, 4.42%, 11/1/14, LOC: Citibank........................................ 2,675,000
</TABLE>
ANNUAL REPORT CALVERT TAX-FREE RESERVES - 15
<PAGE>
Calvert Tax-Free Reserves
Money Market
Statement of Net Assets (Continued)
December 31, 1995
==========
<TABLE>
<CAPTION>
Principal
Amount Value
- ------------------------------------------------------------------------------------------------------------
<C> <S> <C>
Michigan (Cont'd)
$4,400,000 Michigan Housing Development Authority Limited Obligation Revenue
VRDN, 4.42%, 5/1/16, LOC: Citibank......................................... $ 4,400,000
Minnesota (2.9%)
1,100,000 Cottage Grove Pollution Control Board Revenue VRDN, 5.31%,
8/1/12, GA: Minnesota Mining and Manufacturing............................. 1,100,000
19,660,000 Minneapolis Multi-Family Housing Authority Revenue VRDN, 6.15%,
12/1/14, LOC: Citibank..................................................... 19,660,000
31,275,000 Minneapolis Special School District Tax Anticipation Certificates,
5.75%, 1/25/96............................................................. 31,287,709
Mississippi (0.5%)
2,500,000 Flowood Industrial Development Authority Revenue VRDN, 6.00%,
11/1/01, LOC: Long Term Credit Bank of Japan............................... 2,500,000
3,000,000 Mississippi Business Finance Corporation VRDN, 4.42%, 6/1/05,
LOC: Marine Midland Bank................................................... 3,000,000
3,500,000 Penola County Moog Automotive Inc. Project VRDN, 5.55%, 9/1/10,
LOC: Instituto Bancario.................................................... 3,500,000
Missouri (0.8%)
4,045,000 Kansas City Multi-Family Housing Authority Revenue VRDN, 5.30%,
8/1/20, LOC: Heller Financial.............................................. 4,045,000
1,355,000 Missouri Industrial Development Authority Revenue VRDN, 4.2625%,
3/1/01, LOC: FNB Boston.................................................... 1,355,000
9,300,000 St. Louis Industrial Development Authority Revenue VRDN, 5.90%,
1/1/21, LOC: Banca Nazionale Del Lavoro.................................... 9,300,000
New Hampshire (1.2%)
14,075,000 Manchester Multi-Family Housing Authority Revenue VRDN, 7.35%,
6/15/15, LOC: Daiwa Bank, Ltd. ............................................ 14,075,000
6,500,000 New Hampshire Industrial Development Authority Revenue VRDN,
5.50%, 6/1/14, LOC: Commerzbank, A.G. ..................................... 6,500,000
New Jersey (0.5%)
925,000 New Jersey Economic Development Authority VRDN, 5.225%, 3/1/98,
LOC: Meridian Bank......................................................... 925,000
5,900,000 New Jersey Economic Development Authority VRDN, 6.00%, 12/1/15,
LOC: Asahi Bank, Ltd. ..................................................... 5,900,000
1,000,000 New Jersey Economic Development Authority Revenue VRDN, 5.50%,
8/1/17, LOC: Bank of America............................................... 1,000,000
100,000 New Jersey Sports and Exposition, Series B VRDN, 4.75%, 9/1/23,
MBIA Insured............................................................... 100,000
900,000 New Jersey General Obligation Bonds, 4.95%, 2/15/07, TOA: Banque
National de Paris.......................................................... 900,000
</TABLE>
16 - CALVERT TAX-FREE RESERVES ANNUAL REPORT
<PAGE>
Calvert Tax-Free Reserves
Money Market
Statement of Net Assets (Continued)
December 31, 1995
==========
<TABLE>
<CAPTION>
Principal
Amount Value
- ------------------------------------------------------------------------------------------------------------
<C> <S> <C>
New York (3.2%)
$3,000,000 Metropolitan Transportation Authority Revenue VRDN, 5.75%, 7/1/07,
MBIA Insured............................................................... $ 3,000,000
5,000,000 New York City Custodial Receipts, Series A30 C VRDN, 5.75%, 8/1/01,
MBIA Insured............................................................... 5,000,000
5,000,000 New York City Custodial Receipts, Series A28 VRDN, 5.75%, 8/1/03,
AMBAC Insured.............................................................. 5,000,000
4,000,000 New York City Custodial Receipts, Series A29 VRDN, 5.75%, 8/1/03,
AMBAC Insured.............................................................. 4,000,000
9,000,000 New York City General Obligation VRDN, 6.00%, 8/1/15, LOC:
Sumitomo Bank, Ltd. ....................................................... 9,000,000
6,550,000 New York City General Obligation VRDN, 6.00%, 8/1/20, LOC:
Industrial Bank of Japan................................................... 6,550,000
15,000,000 New York City Revenue Anticipation Notes, Series B, 3.95%, 6/28/96,
LOC: Bank of Nova Scotia................................................... 15,057,119
2,000,000 New York State Dormitory Authority Revenue VRDN, 5.75%, 7/1/03,
FGIC Insured............................................................... 2,000,000
8,000,000 Orange County Industrial Development Agency Revenue VRDN, 5.35%,
6/1/98, LOC: Sakura Bank................................................... 8,000,000
Nevada (0.1%)
2,000,000 Henderson Public Improvement Trust Revenue VRDN, 5.60%, 4/1/07,
LOC: Barclays Bank, PLC.................................................... 2,000,000
Ohio (0.1%)
1,000,000 Lancaster Industrial Development Authority Revenue VRDN, 6.125%,
3/1/08, LOC: Banque National De Paris...................................... 1,000,000
Oklahoma (2.2%)
5,930,000 Cleveland Multi-Family Housing Authority Revenue VRDN, 5.85%,
4/1/20, SURBD: Continental Casualty Co. ................................... 5,930,000
5,900,000 Oklahoma Multi-Family Housing Finance Authority Revenue VRDN,
5.75%, 12/1/05, C/LOC: Binghampton Savings Bank............................ 5,900,000
5,000,000 Tulsa Industrial Development Authority, Series A Revenue VRDN, 4.20%,
11/1/14, LOC: Sanwa Bank................................................... 5,000,000
13,200,000 Tulsa Industrial Development Authority Revenue VRDN, 5.25%, 12/1/15,
LOC: Fuji Bank............................................................. 13,200,000
9,400,000 Tulsa Industrial Development Authority Revenue VRDN, 5.25%, 3/1/15,
LOC: Fuji Bank............................................................. 9,400,000
Oregon (0.6%)
3,600,000 Oregon Economic Development Authority Revenue VRDN, 5.375%,
12/1/99, LOC: Bank of Tokyo, Ltd. ......................................... 3,600,000
7,500,000 Oregon State General Obligation VRDN, Series 73E, 5.15%, 12/1/16,
LOC: Dai-Ichi Kangyo Bank.................................................. 7,500,000
</TABLE>
ANNUAL REPORT CALVERT TAX-FREE RESERVES - 17
<PAGE>
Calvert Tax-Free Reserves
Money Market
Statement of Net Assets (Continued)
December 31, 1995
==========
<TABLE>
<CAPTION>
Principal
Amount Value
- ------------------------------------------------------------------------------------------------------------
<C> <S> <C>
Pennsylvania (5.5%)
$2,000,000 Berks County Industrial Development Authority Revenue VRDN, 5.65%,
9/1/10, LOC: Meridian Trust................................................ $ 2,000,000
2,600,000 Berks County Industrial Development Authority Revenue VRDN, 5.225%,
7/1/25, LOC: Meridian Trust................................................ 2,600,000
8,250,000 Montgomery County Industrial Development Authority Revenue VRDN,
5.25%, 12/1/13, LOC: PNC Bank, N.A. ....................................... 8,250,000
14,000,000 Philadelphia General Obligation Tax Revenue Anticipation Notes, Series A,
4.50%, 6/27/96............................................................. 14,033,196
26,590,000 Philadelphia General Obligation Commercial Paper, Adjustable Coupon,
4.10%, 1/25/96, LOC: Fuji Bank............................................. 26,590,000
2,700,000 Philadelphia Multi-Family Housing Redevelopment Authority VRDN,
5.60%, 12/1/09, LOC: Marine Midland Bank................................... 2,700,000
32,000,000 Philadelphia School District General Obligation Tax Revenue Anticipation
Notes, 4.50%, 6/28/96...................................................... 32,082,991
1,460,000 Washington County Industrial Development Authority Revenue VRDN,
5.50%, 12/1/16, LOC: PNC Bank, N.A. ....................................... 1,460,000
8,750,000 York County Hospital Authority Revenue VRDN, 5.44%, 1/1/15, LOC:
First National Bank of Maryland............................................ 8,750,000
South Carolina (0.9%)
5,100,000 Dorchester Industrial Development Authority VRDN, 5.76%, 10/1/24,
LOC: Bayerische Vereinsbank................................................ 5,100,000
5,250,000 Orangeburg Industrial Development Authority Revenue VRDN,
4.2625%, 6/1/08, LOC: FNB Boston........................................... 5,250,000
6,000,000 South Carolina State Housing Finance and Development Authority
Revenue VRDN, 5.50%, 7/1/07, SURBD: Continental Casualty Co. .............. 6,000,000
Tennessee (1.1%)
6,300,000 Coffee County Industrial Development Board VRDN, 6.25%, 12/1/01,
LOC: Asahi Bank, Ltd. ..................................................... 6,300,000
1,700,000 Jackson Industrial Development Board Revenue VRDN, 5.30%, 1/1/07,
LOC: NationsBank........................................................... 1,700,000
2,850,000 McMinn County Industrial Development Board Revenue VRDN,
5.55%, 10/2/04, LOC: Southtrust Bank, AL................................... 2,850,000
2,160,000 Smith County Industrial Development Authority Revenue VRDN, 5.94%,
1/1/10, LOC: First National Bank of Maryland............................... 2,160,000
6,040,000 Tennessee Housing Development Authority, Series E VRDN, 4.35%,
7/1/13, FSA Insured........................................................ 6,040,000
Texas (4.7%)
3,950,000 Brazos River Industrial Development Authority Revenue VRDN, 5.50%,
10/1/07, LOC: West One Bank................................................ 3,950,000
2,000,000 Calhoun County Industrial Development Authority Revenue VRDN,
5.30%, 11/1/15, LOC: Bank of America....................................... 2,000,000
</TABLE>
18 - CALVERT TAX-FREE RESERVES ANNUAL REPORT
<PAGE>
Calvert Tax-Free Reserves
Money Market
Statement of Net Assets (Continued)
December 31, 1995
==========
<TABLE>
<CAPTION>
Principal
Amount Value
============================================================================================================
<S> <C>
Texas (Cont'd)
$2,850,000 Cleburne Industrial Development Authority Revenue VRDN, 5.50%,
2/1/04, LOC: National City Bank............................................. $2,850,000
1,000,000 Grand Prairie Industrial Development Authority Revenue VRDN, 4.15%,
12/1/06, LOC: PNC Bank, N.A................................................. 1,000,000
2,340,000 Grand Prairie Industrial Development Authority Revenue VRDN, 5.55%,
5/1/14, LOC: Texas Commerce................................................. 2,340,000
3,150,000 Guadalupe Blanco River Authority Revenue VRDN, 6.125%, 03/1/08,
LOC: Banque National De Paris............................................... 3,150,000
30,150,000 Harris County Health Facilities Development Authority Revenue VRDN,
5.60%, 12/1/25, IA: Prudential Insurance Co................................. 30,150,000
3,200,000 Harris County Industrial Development Authority Revenue VRDN, 6.10%,
8/1/01, LOC: Sakura Bank, Ltd............................................... 3,200,000
2,600,000 Port Arthur Solid Waste Disposal VRDN, 5.375%, 1/1/97, LOC: National
Bank of Detroit............................................................. 2,600,000
500,000 Sun Belt Industrial Development Authority Revenue VRDN, 5.50%,
12/1/98, LOC: PNC Bank, KY.................................................. 500,000
31,450,000 Texas Tax and Revenue Anticipation Notes, Series A, 4.75%,
8/30/96..................................................................... 31,635,006
Vermont (0.0%)
515,000 Vermont State Industrial Development Authority Revenue VRDN,
4.0125%, 12/1/04, LOC: FNB Boston........................................... 515,000
Virginia (0.0%)
300,000 Fluvanna Industrial Development Authority Revenue VRDN, 5.00%,
12/1/09, LOC: Banque National De Paris...................................... 300,000
Washington (1.9%)
6,000,000 Grandview Industrial Development Bonds Shonan USA Project Revenue
VRDN, 5.60%, 10/1/04, LOC: Sakura Bank...................................... 6,000,000
6,785,000 Pierce County Economic Development Authority Revenue VRDN, 5.60%,
6/1/30, LOC: Bank of Tokyo, Ltd............................................. 6,785,000
2,950,000 Port Everett Limited VRDN, 5.80%, 12/1/06, LOC: Sumitomo
Bank, Ltd................................................................... 2,950,000
3,000,000 Port Moses Lake Public Finance Corporation Revenue VRDN,
5.40%, 7/1/02, LOC: Sakura Bank, Ltd........................................ 3,000,000
7,620,000 Port of Seattle Industrial Development Board Airport Revenue VRDN,
6.00%, 12/1/09, LOC: Bank of New York (2)................................... 7,620,000
4,755,000 Washington State Nonprofit Housing Commission Revenue VRDN,
6.15%, 1/1/21, LOC: Banque Paribas.......................................... 4,755,000
2,990,000 Yakima Public Finance Authority Revenue VRDN, 5.60%, 7/1/07, LOC:
U.S. Bank, WA............................................................... 2,990,000
</TABLE>
ANNUAL REPORT CALVERT TAX-FREE RESERVES - 19
<PAGE>
Calvert Tax-Free Reserves
Money Market
Statement of Net Assets (Continued)
December 31, 1995
=========
<TABLE>
<CAPTION>
Principal
Amount Value
============================================================================================================
<S> <C>
Wisconsin (2.1%)
$800,000 Deerfield Industrial Development Authority Revenue VRDN, 5.50%,
5/1/03, LOC: Commerzbank, A.G............................................ $800,000
25,430,000 Wisconsin Housing and Economic Development Authority Revenue
VRDN, 4.55%, 3/1/20, FSA Insured......................................... 25,430,000
11,825,000 Wisconsin Housing and Economic Development Authority Revenue
VRDN, 4.10%, 3/1/22, TOA: First National Bank of Chicago................. 11,825,000
Other (2.5%)
23,357,000 Koch Financial Corp. VRDN Tender Option Bonds, 6.25%, 10/20/00,
TOA: Credit Suisse....................................................... 23,357,000
5,703,000 Koch Financial Corp. VRDN Tender Option Bonds, 5.50%, 10/20/00,
TOA: Credit Suisse....................................................... 5,703,000
16,213,536 LaSalle National Bank Lease TOPS Trust, Series 1995A, 5.50%, 5/1/02,
BPA: LaSalle Bank........................................................ 16,213,536
TOTAL INVESTMENTS (Cost $1,747,071,370) 98.0%.......................... 1,747,071,370
Other assets and liabilities, net 2.0%................................. 35,503,041
--------------
NET ASSETS 100%........................................................ $1,782,574,411
==============
Net Assets Consist of:
============================================================================================================
Paid-in capital applicable to the following shares of beneficial
interest, unlimited number of no par shares authorized:
Class O: 1,740,947,970 shares outstanding.............................................. $1,740,842,183
Class MMP: 41,731,660 shares outstanding............................................... 41,729,016
Undistributed net investment income...................................................... 103,075
Accumulated net realized gain (loss) on investments...................................... (99,863)
--------------
Net assets............................................................................. $1,782,574,411
==============
Net Asset Value Per Share
============================================================================================================
Class O (based on net assets of $1,740,838,877)....................................... $1.00
=====
Class MMP (based on net assets of $41,735,534)........................................ $1.00
=====
</TABLE>
See notes to financial statements.
20 - CALVERT TAX-FREE RESERVES ANNUAL REPORT
<PAGE>
Calvert Tax-Free Reserves
Limited Term
Statement of Net Assets
December 31, 1995
=========
<TABLE>
<CAPTION>
Principal
Amount Value
============================================================================================================
<S> <C> <C>
Municipal Obligations (100.1%)
Alabama (1.9%)
$3,500,000 Athens Industrial Development Board Revenue VRDN, 6.45%, 6/1/05,
LOC: Tokai Bank, Ltd....................................................... $3,500,000
6,000,000 Auburn Industrial Development Board Revenue VRDN, 7.35%, 12/1/16,
LOC: Daiwa Bank............................................................ 6,000,000
Arizona (3.7%)
5,000,000 Arizona State Certificate of Participation Series A Revenue Bond, 4.80%,
5/1/96, AMBAC Insured...................................................... 5,017,250
5,005,000 Arizona State Certificate of Participation Series A Revenue Bond, 4.90%,
11/1/96, AMBAC Insured..................................................... 5,052,247
2,900,000 Arizona State Certificate of Participation Series A Revenue Bond, 5.20%,
5/1/97, AMBAC Insured...................................................... 2,943,268
2,900,000 Glendale County Industrial Development Authority VRDN, 5.20%,
12/1/13, LOC: Dresdner Bank (Tender 12/1/98 @ 100)......................... 2,901,450
2,250,000 Maricopa County Pollution Control Revenue Bonds for El Paso Electric,
5.125%, 6/1/97, LOC: Citibank.............................................. 2,282,715
Arkansas (0.2%)
840,000 Arkansas Student Loan Authority Revenue Bond, 6.40%, 6/1/97.................. 866,275
California (19.0%)
3,300,000 California Education Facilities Authority Revenue VRDN, 5.85%, 10/1/09,
LOC: Long Term Credit Bank of Japan........................................ 3,300,000
10,000,000 California State Revenue Anticipation Warrants, 9.226%, 4/25/96, BPA:
Banque Nat'l de Paris...................................................... 10,162,500
977,467 California State Department of General Services Certificates of
Participation, 6.75%, 8/31/96.............................................. 990,330
1,043,446 California State Department of General Services Certificates of
Participation, 6.75%, 8/31/97.............................................. 1,071,807
7,500,000 Clovis Multi-Family Housing VRDN, 6.75%, 10/1/10, LOC: Tokai
Bank, Ltd.................................................................. 7,500,000
1,525,000 Compton Community Redevelopment Agency Tax Allocation Notes,
Series 1, 5.50%, 8/1/98.................................................... 1,546,914
1,000,000 Foothill Transit Zone Certificates of Participation, Series A, 4.25%,
5/1/96..................................................................... 1,000,000
4,800,000 Loma Linda Multi-Family Housing Revenue VRDN, 6.35%, 7/1/19, LOC:
Tokai Bank, Ltd............................................................ 4,800,000
900,000 Los Angeles County Community Redevelopment Agency VRDN, 6.30%,
12/1/10, LOC: Tokai Bank, Ltd.............................................. 900,000
675,000 Los Angeles County Redevelopment Agency Multi-Family Housing
Revenue VRDN, 5.75%, 4/1/09, LOC: Tokai Bank, Ltd.......................... 675,000
1,750,000 Oakland Unified School District Alameda County 1994 Certificate
of Participation Revenue Bond, 4.40%, 9/15/96.............................. 1,747,235
</TABLE>
ANNUAL REPORT CALVERT TAX-FREE RESERVES - 21
<PAGE>
Calvert Tax-Free Reserves
Limited Term
Statement of Net Assets (Continued)
December 31, 1995
=========
<TABLE>
<CAPTION>
Principal
Amount Value
============================================================================================================
<S> <C> <C>
California (Cont'd)
$1,000,000 Orange County Airport Development Board Revenue VRDN,
6.65%, 11/1/08, LOC: Tokai Bank, Ltd....................................... $1,000,000
5,900,000 Orange County Airport Development Board Revenue VRDN, Series C,
6.65%, 11/1/09, LOC: Tokai Bank, Ltd....................................... 5,900,000
475,468 Palmdale School District Jupiter Land II Project VRDN, 5.75%, 12/13/10,
LOC: National Westminster Bank............................................. 475,468
18,400,000 Redlands Sewer Facilities Project Certificates of Participation, 4.50%,
9/1/17, FGIC Insured (Tender 6/1/96 @ 100)................................. 18,467,894
960,000 Riverside Multi-Family Housing VRDN, 6.60%, 12/1/16, LOC:
Tokai Bank, Ltd............................................................ 960,000
2,500,000 San Bernadino County Multi-Family Revenue VRDN, 6.35%, 8/1/01,
LOC: Tokai Bank, Ltd....................................................... 2,500,000
20,800,000 San Francisco City and County Redevelopment Agency Multi-Family
Revenue VRDN, 6.00%, 3/1/18, LOC: Dai-Ichi Kangyo Bank..................... 20,800,000
8,000,000 San Francisco City and County Redevelopment Agency Multi-Family
Revenue VRDN, 5.75%, 10/1/00, LOC: Mitsubishi T&B.......................... 8,000,000
965,000 Tri-City California Hospital District Certificate of Participation,
9.875%, 2/1/09 (Pre-Refunded 2/1/96 @ 100)................................. 970,298
Colorado (2.8%)
3,600,000 Denver City and County Airport Revenue Bonds, Series A, 6.35%,
11/15/96................................................................... 3,673,008
9,500,000 Denver City and County Airport Revenue Bonds, Series A, 6.60%,
11/15/97................................................................... 9,882,563
Connecticut(1.5%)
2,000,000 Connecticut General Obligation Bonds, Series E, 5.25%, 8/15/96............... 2,020,840
2,000,000 Connecticut Development Authority Airport Facilities Revenue VRDN,
6.70%, 12/1/20, LOC: Multiple Banks........................................ 2,000,000
3,065,000 New Haven Industrial Facility Revenue Bonds, 7.00%, 7/1/09, LOC:
Daiwa Bank, Ltd. (Tender 7/1/96 @ 100)..................................... 3,067,973
District of Columbia (0.8%)
3,770,000 District of Columbia Hospital Revenue Bonds, 5.625%, 8/15/96................. 3,791,791
Florida (5.3%)
330,000 State Certificate of Participation Revenue Bonds, 5.90%, 5/15/96............. 332,234
2,000,000 Dade County General Obligation Bonds, 12.00%, 10/1/96........................ 2,124,020
6,850,000 Duval County Multi-Family Housing VRDN, 6.10%, 6/1/07, LOC:
Household Finance Corp..................................................... 6,850,000
10,000,000 Jacksonville Hospital Revenue Bonds, 10.375%, 10/1/07 (Pre-Refunded
10/1/97 @ 100)............................................................. 11,290,800
5,035,000 Palm Beach Housing Finance Authority-Mallards Cove VRDN, 5.525%,
3/1/22, INSUR: Fireman's Insurance Co...................................... 5,035,000
</TABLE>
22 - CALVERT TAX-FREE RESERVES ANNUAL REPORT
<PAGE>
Calvert Tax-Free Reserves
Limited Term
Statement of Net Assets (Continued)
December 31, 1995
=========
<TABLE>
<CAPTION>
Principal
Amount Value
============================================================================================================
<S> <C> <C>
Illinois (4.6%)
$7,825,000 Bloomingdale Industrial Development Authority Revenue VRDN, 5.25%,
1/1/98, INSUR: Fireman's Insurance Co. (Tender 8/1/96 @ 100)............... $7,885,642
8,000,000 Chicago Board of Education Certificates of Participation, 4.35%, 12/1/98,
LOC: Canadian Imperial..................................................... 8,014,960
2,000,000 Chicago Parking District General Obligation Refunding Bonds, 5.50%,
1/1/99, FGIC Insured....................................................... 2,062,240
2,600,000 Chicago Public Building Commonwealth Bonds, 9.00%, 1/1/96.................... 2,600,728
940,000 Illinois Health Facilities Authority La Grange Memorial Hospital
Revenue Bonds, 4.25%, 5/15/96, AMBAC Insured
(Escrowed to maturity)..................................................... 942,566
1,000,000 Illinois Housing Development Authority Multi-Family Housing Series A
Bonds, 5.30%, 7/1/96....................................................... 1,007,250
Indiana (0.2%)
1,225,000 Indiana Bond Bank Revenue Bonds, 4.60%, 2/1/96............................... 1,225,796
Kentucky (1.7%)
4,000,000 Bowling Green Industrial Development Revenue VRDN, 6.25%, 12/1/96,
LOC: Long Term Credit Bank of Japan (2).................................... 4,000,000
2,500,000 Glasgow Industrial Development Revenue VRDN, 5.95%, 6/1/20,
LOC: National Westminster Bank (2)......................................... 2,500,000
1,800,000 Kentucky State Turnpike Authority Economic Development Revenue
Bonds, 5.00%, 1/1/98....................................................... 1,832,958
Louisiana (4.2%)
2,000,000 General Obligation Bonds, 8.00%, 5/1/96...................................... 2,028,400
2,800,000 Louisiana Public Facilities Hospital Authority Revenue VRDN, 4.85%,
12/1/00, MBIA Insured, BPA: Sakura Bank.................................... 2,800,000
5,000,000 Louisiana Public Facilities Authority Revenue Bonds, 6.00%, 7/1/07,
GA: Connecticut General Life Insurance Co. (Tender 7/1/97 @ 100)........... 5,025,000
4,000,000 Louisiana Public Facilities Authority Revenue Bonds, 7.30%,
12/1/15, (Tender 6/1/97 @ 100), LOC: Sumitomo Bank, Ltd.................... 4,174,920
1,000,000 Louisiana Offshore Deepwater Port Revenue Bonds, 6.25%, 9/1/96............... 1,016,910
2,535,000 Louisiana Offshore Deepwater Port Revenue Bonds, 6.35%, 9/1/97............... 2,629,429
2,780,000 Louisiana Offshore Deepwater Port Revenue Bonds, 6.45%, 9/1/98............... 2,934,902
Maine (1.4%)
6,875,000 Finance Authority of Maine Multi-Family Housing Revenue Bonds, 4.50%,
9/1/18, LOC: Sakura Bank (Tender 9/1/96 @ 100)............................. 6,878,025
Maryland (2.2%)
115,165 Baltimore County Economic Development Corp. for John Schmit, 5.00%,
12/1/08, LOC: First National Bank of Maryland
(Tender 12/1/98 @ 100)..................................................... 112,581
</TABLE>
ANNUAL REPORT CALVERT TAX-FREE RESERVES - 23
<PAGE>
Calvert Tax-Free Reserves
Limited Term
Statement of Net Assets (Continued)
December 31, 1995
=========
<TABLE>
<CAPTION>
Principal
Amount Value
============================================================================================================
<S> <C> <C>
Maryland (Cont'd)
$15,593 Baltimore County Industrial Development Authority Revenue Bonds,
6.75%, 5/1/96................................................................. $15,611
1,916,820 Harford Industrial Development Board Revenue Bonds, 5.25%, 6/1/10,
LOC: First National Bank of Maryland (Tender 6/1/96 @ 100).................... 1,927,439
340,000 Maryland State Industrial Development Authority Economic
Development Corp., Series B, 5.875%, 11/1/09, LOC: First National
Bank of Maryland.............................................................. 340,000
3,560,000 Maryland State Industrial Development Authority Economic Development
VRDN, 6.75%, 12/31/11, LOC: First National Bank of Maryland................... 3,560,000
1,000,000 Montgomery County Economic Development VRDN, 6.375%,
11/1/09, LOC: First National Bank of Maryland................................. 1,000,000
4,000,000 Montgomery County Housing Opportunities Commission Multi-Family
Mortgage Revenue Bonds, 6.00%, 2/1/07, GA: New England Mutual
Life (Tender 2/1/97 @ 100).................................................... 4,007,120
Michigan (4.7%)
1,630,000 Detroit Distributable State Aid Revenue Bonds, 5.375%, 5/1/96................... 1,637,465
2,000,000 Detroit Distributable State Aid Revenue Bonds, 5.625%, 5/1/97................... 2,034,260
5,030,000 Detroit Limited General Obligation Bonds, Series A, 5.20%, 5/1/98............... 5,112,593
325,000 Michigan Housing Development Authority Limited Obligation Forest Hill
VRDN, 4.42%, 11/1/14, LOC: Citibank........................................... 325,000
400,000 Michigan Housing Development Authority VRDN, 5.25%, 10/1/11..................... 400,250
175,000 Michigan Housing Development Authority Limited Obligation River
Place Plaza Notes, 5.25%, 10/1/11............................................. 176,216
295,000 Michigan Housing Development Authority Bonds, 6.00%, 10/1/11,
(Escrowed in U.S. Treasury Obligations)....................................... 296,599
2,500,000 Michigan Strategic Fund Limited Obligation Revenue VRDN, 6.00%,
11/1/09, LOC: Tokai Bank, Ltd................................................. 2,500,000
3,525,000 Oakland County Economic Development Obligation, 5.25%, 11/1/14
(Put 11/1/97 @ 100)........................................................... 3,583,374
6,980,000 Southfield Economic Development Corporation VRDN, 5.95%, 5/15/11,
INSUR: Fireman's Insurance Co................................................. 6,980,000
Minnesota (1.0%)
4,790,000 St. Paul Port Authority Battlecreek Hotel Revenue Bonds, 4.75%, 7/1/12,
(Tender 4/1/96 @ 100)......................................................... 4,802,215
Missouri (0.2%)
1,200,000 Missouri State Health and Education Facilities Bethesda Group, 5.25%,
8/15/96....................................................................... 1,203,528
Nevada (0.2%)
1,000,000 Las Vegas Valley Water District, 6.90%, 3/1/96.................................. 1,005,440
</TABLE>
24 - CALVERT TAX-FREE RESERVES ANNUAL REPORT
<PAGE>
Calvert Tax-Free Reserves
Limited Term
Statement of Net Assets (Continued)
December 31, 1995
=========
<TABLE>
<CAPTION>
Principal
Amount Value
=================================================================================================
<S> <C> <C>
New Hampshire (0.1%)
$465,000 New Hampshire Health & Higher Education Notes, 7.50%, 12/1/00,
FGIC Insured...................................................... $474,891
New Mexico (0.2%)
1,020,000 Educational Assistance Student Loan Revenue Bonds, Series A, 5.75%,
4/1/96, AMBAC Insured............................................. 1,024,845
New York (10.9%)
2,785,000 City University Certificates of Participation, 4.40%, 8/15/97....... 2,793,996
4,965,000 City University Certificates of Participation, 4.65%, 8/15/98....... 4,989,130
4,265,000 State Certificate of Participation Revenue Bonds, 4.75%, 2/1/96..... 4,267,474
2,500,000 State Certificate of Participation Revenue Bonds, 5.50%, 9/1/96..... 2,520,825
3,000,000 State Certificate of Participation Revenue Bonds, 5.75%, 3/1/97..... 3,062,070
5,335,000 State Certificate of Participation Revenue Bonds, 4.75%, 9/1/97..... 5,382,482
5,775,000 State Certificate of Participation Revenue Bonds, 4.90%, 3/1/98..... 5,831,480
5,920,000 State Certificate of Participation Revenue Bonds, 4.90%, 9/1/98..... 5,986,067
1,500,000 New York City General Obligation Bonds, Series A, 7.20%, 8/15/96.... 1,530,780
1,940,000 New York City General Obligation Bonds, Series D, 6.80%, 2/1/97..... 1,999,733
1,000,000 New York City General Obligation Bonds, Series E, 5.50%, 8/1/97..... 1,019,890
7,385,000 New York Dormitory Authority Revenue Bonds, Series A, 4.375%,
7/1/97............................................................ 7,415,426
1,165,000 New York Dormitory Authority Revenue Bonds, Series A, 4.75%,
7/1/97............................................................ 1,175,438
1,155,000 New York Dormitory Authority Revenue Bonds, Series B, 4.375%,
7/1/97............................................................ 1,159,089
575,000 New York Energy Research and Development Authority State Service
Contract Revenue Bonds, 5.00%, 4/1/97............................. 580,951
595,000 New York Energy Research and Development Authority State Service
Contract Revenue Bonds, 5.00%, 4/1/98............................. 601,908
2,800,000 New York State Thruway Authority Highway and Bridge Trust Fund
Revenue Bonds, Series A, 4.10%, 4/1/97............................ 2,800,532
305,000 Orange County Industrial Development Authority VRDN, 5.61%,
12/1/05, LOC: United Jersey Bank.................................. 305,000
Ohio (4.0%)
4,000,000 Brookville Industrial Development Board Revenue VRDN, 5.15%,
4/1/05, LOC: Tokai Bank, Ltd...................................... 4,000,000
1,500,000 Cleveland School District General Obligation Bonds, 6.35%, 6/15/96.. 1,514,385
2,450,000 Cleveland School District General Obligation Bonds, 7.25%, 6/15/98.. 2,582,937
3,275,000 Lucas Industrial Development Authority Revenue VRDN, 3.90%,
9/1/14, LOC: Bank of Tokyo, Ltd................................... 3,275,000
7,890,000 Youngstown School District, 6.00%, 6/27/96.......................... 7,942,469
</TABLE>
ANNUAL REPORT CALVERT TAX-FREE RESERVES - 25
<PAGE>
Calvert Tax-Free Reserves
Limited Term
Statement of Net Assets (Continued)
December 31, 1995
=========
<TABLE>
<CAPTION>
Principal
Amount Value
==================================================================================================
<S> <C> <C>
Pennsylvania (8.2%)
$8,500,000 Beaver County Industrial Development Authority Pollution Control
Revenue Bonds, 5.25%, 10/1/32, LOC: Barclays Bank, PLC
(Tender 10/1/97 @ 100)................................................ $8,501,615
7,000,000 Pennsylvania Intergovernmental Cooperative, 5.40%, 6/15/97.............. 7,149,590
2,000,000 Philadelphia Gas Works Revenue Bonds, Series 14, 6.80%, 7/1/96,
AMBAC Insured......................................................... 2,031,320
2,000,000 Philadelphia Gas Works Revenue Bonds, Series B, 6.90%, 7/1/96........... 2,030,420
11,415,000 Philadelphia Gas Works Revenue Bonds, Series 14, 4.90%, 7/1/96.......... 11,476,070
200,000 Sharon Regional Health Systems Hospital, 5.50%, 12/1/97................. 202,570
8,750,000 Westmoreland Industrial Development Authority Revenue Bonds,
4.375%, 5/1/18, LOC: ABN Amro Bank (Tender 5/1/96 @ 100).............. 8,766,013
Puerto Rico (6.2%)
1,350,000 Puerto Rico Commonwealth Infrastructure Financial Authority, Series A,
7.40%, 7/1/98......................................................... 1,448,469
28,000,000 Puerto Rico Electric Power Authority, Series W, 5.00%, 7/1/98........... 28,554,120
Tennessee (2.3%)
11,000,000 Roane County Industrial Board and Solid Waste Disposal
Revenue Bonds, 5.90%, 11/1/20, LOC: Long Term Credit Bank of
Japan (Tender 11/1/96 @ 100).......................................... 11,093,950
Texas (1.7%)
1,000,000 General Obligation Bonds, Series A, 4.625%, 10/1/97..................... 1,013,660
7,100,000 Orange County Navigation and Port District Horsehead Reservoir
Development Project VRDN, 6.55%, 10/1/22, LOC: Long Term Credit
Bank of Japan......................................................... 7,100,000
Vermont (0.7%)
1,750,000 Central Vermont Indusrial Development Authority Public Service
Corporation VRDN, 5.95%, 12/1/01, LOC: Vermont
National Bank......................................................... 1,750,000
505,000 Vermont Industrial Development Authority Revenue VRDN, 4.25%,
12/1/13, LOC: Toronto Dominion........................................ 505,000
250,000 Vermont Municipal Bond Banks, Series 1, 6.75%, 12/1/97.................. 263,538
1,000,000 Vermont General Obligation Bonds, Series B, 6.60%, 10/15/96............. 1,023,690
Virginia (1.9%)
1,925,000 Hampton Redevelopment Housing Authority Magruder Pines, 7.125%,
5/1/08, C/LOC: Pioneer Federal Savings and Loan,
(Tender 5/1/96 @ 100)................................................. 1,946,791
2,350,000 Henrico County Industrial Development Authority Revenue Bonds,
6.45%, 10/1/00, LOC: Tokai Bank, Ltd.................................. 2,350,000
1,600,000 Henrico County Industrial Development Authority Revenue Bonds,
4.95%, 10/1/00, LOC: Tokai Bank, Ltd.................................. 1,600,000
</TABLE>
26 - CALVERT TAX-FREE RESERVES ANNUAL REPORT
<PAGE>
Calvert Tax-Free Reserves
Limited Term
Statement of Net Assets (Continued)
December 31, 1995
=========
<TABLE>
<CAPTION>
Principal
Amount Value
=======================================================================================================
<S> <C> <C>
Virginia (Cont'd)
$970,000 Peninsula Port Authority Industrial Development Board Revenue Bonds for
Olde Hampton Inn, 4.25%, 7/1/16, LOC: NationsBank (Tender
7/1/96 @ 100)........................................................... $972,163
2,240,000 Virginia State Housing Development Authority Construction Loan Notes,
6.875%, 1/1/17 (Tender at any interest payment date).................... 2,279,469
Washington (2.0%)
1,500,000 Washington State General Obligation Bonds, 8.00%, 9/1/09
(Pre-Refunded 9/1/96 @ 100)............................................. 1,544,340
8,000,000 Washington State General Obligation Bonds, Series R, 4.20%, 8/1/98........ 8,032,880
West Virginia (3.2%)
3,730,000 School Building Authority, 6.25%, 7/1/96.................................. 3,776,066
11,295,000 School Building Authority, 7.00%, 7/1/97.................................. 11,763,517
Other (3.1%)
2,000,000 Absaloka Casino Enterprise Bond Anticipation Notes. 8.50%, 12/1/97........ 2,011,300
9,000,000 Fort Mojave Indian Tribe of Arizona, California and Nevada Public
Facilities Combined Limited Obligation and Revenue Bonds Adjustable
Rate and Tender Series A of 1993, 5.75%, 12/1/18
(Tender 12/1/96 @ 100).................................................. 9,140,850
3,900,000 Oneida Utilities Commission (An Instrumentality of the Oneida Tribe of
Indians of Wisconsin) Government Facilities Lease Revenue Bonds,
Series 1993, 5.75%, 7/1/96.............................................. 3,925,623
TOTAL INVESTMENTS (Cost $485,312,125) 100.1%.......................... 488,468,119
Other assets and liabilities, net (0.1%).............................. (704,496)
------------
NET ASSETS 100%....................................................... $487,763,623
============
Net Assets Consist of:
=======================================================================================================
Paid-in capital applicable to the following shares of beneficial interest,
unlimited number of no par shares authorized:
Class A: 42,689,940 shares outstanding............................................... $454,830,466
Class C: 2,813,640 shares outstanding................................................ 29,987,017
Undistributed net investment income...................................................... 282,318
Accumulated net realized gain (loss) on investments...................................... (492,172)
Net unrealized appreciation/(depreciation) on investments................................ 3,155,994
------------
Net assets......................................................................... $487,763,623
============
Net Asset Value Per Share
=======================================================================================================
Class A (based on net assets of $457,706,997).......................................... $ 10.72
============
Class C (based on net assets of $30,056,626)........................................... $ 10.68
============
</TABLE>
See notes to financial statements.
ANNUAL REPORT CALVERT TAX-FREE RESERVES - 27
<PAGE>
Calvert Tax-Free Reserves
Long Term
Statement of Net Assets
December 31, 1995
=========
<TABLE>
<CAPTION>
Principal
Amount Value
=======================================================================================================
<S> <C> <C>
Municipal Obligations (98.3%)
Arizona (0.3%)
$200,000 Prescott Convention Center Industrial Development Authority, Series A
VRDN, 4.50%, 12/1/14, GA: Household Financial Corp........................ $200,000
California (12.8%)
500,000 California General Obligation Bonds, 9.226%, 4/25/96, BPA:
Banque National de Paris.................................................. 508,125
1,189,065 California State Department of Justice Certificates of Participation, 6.75%,
8/31/99................................................................... 1,233,619
1,000,000 Montebello Unified School District Certificate of Participation
Revenue Bonds, 6.30%, 6/1/11.............................................. 1,039,520
3,100,000 Orange County Airport Development Authority Revenue VRDN, 5.50%,
3/1/07, LOC: Tokai Bank................................................... 3,100,000
500,000 Santa Ana Muli-Family Housing Revenue VRDN, Vintage Apartments
Project, 6.80%, 12/1/16, LOC: Tokai Bank.................................. 500,000
1,000,000 Walnut Valley School District General Obligation Bonds, 6.10%, 8/1/08,
AMBAC Insured............................................................. 1,103,770
Connecticut (2.0%)
1,200,000 Connecticut Airport Development Authority Revenue VRDN, 6.70%,
12/1/20, LOC: Daiwa Bank.................................................. 1,200,000
Colorado (7.2%)
5,280,000 Colorado Health Facilities Authority Retirement Facilities, Zero Coupon,
7/15/20, IA: Escrowed (Refcorp Strips).................................... 1,087,310
6,500,000 Dawson Ridge Metropolitan District Series B, Zero Coupon Bonds,
10/1/22, IA: Escrowed (Treasuries)........................................ 1,232,270
500,000 Denver City and County Airport Bonds, 7.00%, 11/15/99....................... 535,360
1,300,000 Denver City and County Airport Bonds, 7.20%, 11/15/02....................... 1,428,934
Delaware (0.1%)
80,000 Dover Electric Power Revenue Bonds, 7.00%, 7/1/15........................... 86,484
Florida (16.7%)
440,000 Collier County Special Assessment Revenue Bonds, 5.375%, 11/1/07............ 459,976
1,500,000 Dade County Industrial Development Authority Revenue Bonds,
8.00%, 6/1/22............................................................. 1,559,025
1,000,000 Flagler County Special Assessment Revenue Bonds, 7.20%, 7/1/14.............. 1,129,790
500,000 Hillsborough County Port District Special Refunding Revenue Bonds,
5.75%, 6/1/13, FSA Insured................................................ 523,440
1,250,000 Palm Beach County School Board Certificates of Participation, Series A,
5.375%, 8/1/15, AMBAC Insured............................................. 1,251,538
2,500,000 Tampa Capital Improvement Program Series B, 8.375%, 10/1/18,
IA: Den Danske Bank....................................................... 2,705,025
2,000,000 Tampa Palms Community Development Special Assessment Revenue
Bonds, 5.90%, 5/1/08, MBIA Insured........................................ 2,179,520
</TABLE>
28 - CALVERT TAX-FREE RESERVES ANNUAL REPORT
<PAGE>
Calvert Tax-Free Reserves
Long Term
Statement of Net Assets (Continued)
December 31, 1995
=========
<TABLE>
<CAPTION>
Principal
Amount Value
===================================================================================================
<S> <C> <C>
Hawaii (1.7%)
$1,000,000 Honolulu General Obligation Bonds, 5.00%, 10/1/13...................... $989,480
Indiana (1.9%)
1,000,000 Indianapolis Local Public Improvement Bond Bank, 6.75%, 2/1/14......... 1,142,530
Kansas (1.6%)
885,000 Sedgwick and Shawnee County Housing Mortgage Bonds, Series C,
8.625%, 11/1/18, GNMA Collateralized................................. 949,224
Louisiana (6.3%)
1,735,000 Louisiana Public Facility Authority Multi-Family Housing Revenue Bonds,
7.00%, 6/1/24, INSUR: Asset Guaranty................................. 1,854,368
1,690,000 Louisiana Public Finance Agency Multi-Family Housing Revenue Bonds,
7.75%, 11/1/16....................................................... 1,844,500
Maryland (5.8%)
2,100,000 Cambridge Economic Development Revenue Bonds, 8.50%, 4/1/14............ 2,303,133
158,150 Maryland Industrial Development Finance Authority Revenue Bonds,
6.75%, 5/1/96........................................................ 158,410
950,000 Maryland State Community Development Authority Mortgage Revenue
Bonds, 7.70%, 4/1/15................................................. 994,356
Michigan (1.8%)
1,000,000 Michigan Hospital Finance Authority Bonds, 7.00%, 11/1/21.............. 1,093,770
Mississippi (3.7%)
2,000,000 Mississippi Hospital Equipment and Facilities Authority Revenue Bonds,
7.50%, 8/1/16, GIC: Banque National de Paris......................... 2,186,860
New York (6.6%)
1,000,000 New York City Bonds, Series E, 5.75%, 2/15/09.......................... 989,940
2,500,000 New York and New Jersey Port Authority Ninety-Third Series
Consolidated Revenue Bonds, 6.125%, 6/1/2094......................... 2,757,800
125,000 Orange County Industrial Development Agency VRDN, 5.61%, 12/1/05,
LOC: United Jersey Bank.............................................. 125,000
Ohio (3.5%)
1,000,000 Cleveland Waterworks Revenue Bonds, 5.50%, 1/1/21, MBIA Insured........ 1,046,010
1,000,000 Ohio Water Development Authority Pollution Control Facilities
Revenue Bonds, 5.50%, 6/1/15, MBIA Insured........................... 1,006,700
Pennsylvania (6.7%)
1,350,000 Northeastern Pennsylvania Hospital Authority Revenue Bonds, 7.65%,
7/1/10, (Pre-refunded 7/1/99 @ 102).................................. 1,521,801
</TABLE>
ANNUAL REPORT CALVERT TAX-FREE RESERVES - 29
<PAGE>
Calvert Tax-Free Reserves
Long Term
Statement of Net Assets (Continued)
December 31, 1995
=========
<TABLE>
<CAPTION>
Principal
Amount Value
================================================================================================
<S> <C> <C>
Pennsylvania (Cont'd)
$315,000 Pennsylvania Housing Finance Authority Single Family Mortgage
Revenue Bonds, Series 27, 8.15%, 10/1/21............................. $325,521
2,000,000 Philadelphia Airport Revenue Bonds, 9.00%, 6/15/15..................... 2,070,600
Rhode Island (1.9%)
500,000 Rhode Island Port Authority Economic Development Authority Corp.,
Series A, 7.00%, 7/1/14, FSA Insured................................. 596,815
500,000 Rhode Island State Housing Mortgage Finance Corp., 7.95%, 10/1/30...... 533,330
Texas (1.9%)
1,000,000 Houston Water Conveyance System Contract Certificates of Participation,
6.125%, 12/15/09, AMBAC Insured...................................... 1,115,260
Vermont (2.1%)
1,250,000 Vermont Educational and Health Buildings Finance Agency Hospital
Revenue Bonds, 6.00%, 9/1/06......................................... 1,269,563
Virginia (6.6%)
1,000,000 Arlington County General Obligation Bonds Series 1993, 6.00%, 6/1/11... 1,111,140
1,000,000 Virginia State Housing Development Authority Revenue Bonds, 6.00%,
7/1/03............................................................... 1,041,000
1,000,000 Virginia State Housing Development Authority Revenue Bonds, 8.00%,
1/1/38............................................................... 1,047,850
700,000 Virginia State Resources Authority Water and Sewer Bonds, 5.50%,
10/1/19.............................................................. 701,245
Washington (3.2%)
1,915,000 Washington Public Power Supply Bonds, 5.50%, 7/1/17, MBIA Insured...... 1,903,050
West Virginia (2.2%)
4,000,000 Kanawha Mercer Nicholas Putnam & Raleigh Counties, Zero Coupon
Bonds, 2/1/15, (Pre-refunded 2/1/14 @ 89.8452)....................... 1,311,760
Other (1.7%)
1,000,000 Oneida Utilities Community Government Facilities Lease Revenue Bonds,
6.25%, 7/1/97........................................................ 1,020,960
Total Municipal Obligations (Cost $53,992,746)..................................... 58,075,682
</TABLE>
30 - CALVERT TAX-FREE RESERVES ANNUAL REPORT
<PAGE>
Calvert Tax-Free Reserves
Long Term
Statement of Net Assets (Continued)
December 31, 1995
==========
<TABLE>
<CAPTION>
Contracts Value
- ------------------------------------------------------------------------------------------------------------
Options Purchased (0.3%)
<S> <C>
96 Call Options on March 1996 U.S. Treasury Bond Futures,
Expiration 2/17/96, Strike Price 122....................................... $139,500
-----------
Total Options (Premium $138,960)............................................. 139,500
-----------
TOTAL INVESTMENTS (Cost and Premium $54,131,705) 98.6%................... $58,215,182
Other assets and liabilities, net 1.4%................................... 821,584
-----------
NET ASSETS 100%.......................................................... $59,036,766
===========
Net Assets Consist of:
- ------------------------------------------------------------------------------------------------------------
Paid-in capital applicable to the following shares of beneficial interest,
unlimited number of no par shares authorized:
Class A: 3,313,537 shares outstanding..................................................... $53,143,528
Class C: 97,939 shares outstanding........................................................ 1,596,790
Undistributed net investment income......................................................... 185,973
Accumulated net realized gain (loss) on investments......................................... 26,998
Net unrealized appreciation (depreciation) on investments................................... 4,083,477
-----------
Net assets................................................................................ $59,036,766
===========
Net Asset Value Per Share
- ------------------------------------------------------------------------------------------------------------
Class A (based on net assets of $57,358,592)............................................. $17.31
===========
Class C (based on net assets of $1,678,174).............................................. $17.13
===========
</TABLE>
Explanation of Guarantees Abbreviations
BPA: Bond-Purchase Agreement VRDN: Variable Rate Demand Notes
CD: Certificate of Deposit
GA: Guaranty Agreement
LOC: Letter of Credit
C/LOC: Collateralized LOC
CONF: Confirming Letter of Credit
GIC: Guaranteed Investment Contract
INSUR: Insurance
SURBD: Surety Bond
REPO: Repurchase Agreement
TOA: Tender Option Agreement
TPG: Third Party Guarantee
IA: Investment Agreement
Certain securities have optional or mandatory tender features which give them a
shorter effective maturity date.
See notes to financial statements.
ANNUAL REPORT CALVERT TAX-FREE RESERVES - 31
<PAGE>
Calvert Tax-Free Reserves
Statements of Operations
Year Ended December 31, 1995
==========
<TABLE>
<CAPTION>
Money Limited- Long-
Market Term Term
Net Investment Income Portfolio Portfolio Portfolio
- --------------------------------------------------------------------------------------
<S> <C> <C> <C>
Investment Income
Interest income.......................... $76,458,272 $26,031,436 $3,500,604
----------- ----------- ----------
Expenses
Investment advisory fee.................. 7,481,925 3,149,849 320,128
Transfer agency fees and expenses........ 1,649,516 240,490 31,611
Distribution Plan expenses:
Class MMP.............................. 38,145 ---- ----
Class A................................ ---- ---- 46,932
Class C................................ ---- 168,467 12,079
Trustees' fees and expenses.............. 144,818 47,615 4,495
Administrative fees...................... 124,836 39,445 3,955
Custodian fees........................... 128,309 42,316 9,541
Registration fees........................ 68,275 30,617 20,604
Reports to shareholders.................. 686,321 126,010 18,827
Professional fees........................ 66,732 15,553 1,514
Miscellaneous............................ 158,882 89,445 11,825
----------- ----------- ----------
Total expenses......................... 10,547,759 3,949,807 481,511
Fees paid indirectly................... (128,309) (44,316) (9,601)
----------- ----------- ----------
Net expenses......................... 10,419,450 3,905,491 471,910
----------- ----------- ----------
Net Investment Income................ 66,038,822 22,125,945 3,028,694
----------- ----------- ----------
Realized and Unrealized
Gain (Loss) on Investments
- --------------------------------------------------------------------------------------
Net realized gain (loss) on securities.... (8,789) (7,886) 874,790
Net realized gain (loss) on futures....... ---- ---- (101,856)
----------- ----------- ----------
(8,789) (7,886) 772,934
Change in unrealized appreciation
or depreciation.......................... ---- 6,379,282 4,039,827
----------- ----------- ----------
Net Realized and
Unrealized Gain (Loss)
on Investments....................... (8,789) 6,371,396 4,812,761
----------- ----------- ----------
Increase (Decrease) in
Net Assets Resulting
from Operations...................... $66,030,033 $28,497,341 $7,841,455
=========== =========== ==========
</TABLE>
See notes to financial statements.
32 - CALVERT TAX-FREE RESERVES ANNUAL REPORT
<PAGE>
Calvert Tax-Free Reserves
Statements of Changes in Net Assets
==========
<TABLE>
<CAPTION>
Money Market Money Market
Portfolio Portfolio
Year Ended Year Ended
Increase (Decrease) in Net Assets Dec. 31, 1995 Dec. 31, 1994
==================================================================================================
<S> <C> <C>
Operations
Net investment income......................................... $ 66,038,822 $ 40,403,451
Net realized gain (loss) on investments....................... (8,789) (91,118)
--------------- ---------------
Increase (Decrease) in Net Assets
Resulting from Operations................................... 66,030,033 40,312,333
--------------- ---------------
Distributions to shareholders from
Net investment income:
Class O shares............................................... (65,599,120) (40,442,346)
Class MMP shares.............................................. (339,143) ----
--------------- ---------------
Total distributions........................................... (65,938,263) (40,442,346)
--------------- ---------------
Capital share transactions
Shares sold:
Class O shares............................................... 6,744,165,972 4,996,477,020
Class MMP shares............................................. 57,608,751 ----
Reinvestment of distributions:
Class O shares............................................... 63,374,528 40,442,830
Class MMP shares............................................. 332,568 ----
Shares redeemed:
Class O shares............................................... (6,411,381,797) (5,192,809,177)
Class MMP shares............................................. (16,212,303) ----
--------------- ---------------
Total capital share transactions.............................. 437,887,719 (155,889,327)
--------------- ---------------
Total Increase (Decrease) in Net Assets........................ 437,979,489 (156,019,340)
Net Assets
==================================================================================================
Beginning of year.............................................. 1,344,594,922 1,500,614,262
--------------- ---------------
End of year (including undistributed net investment income of
$103,075 and $2,516 for 1995 and 1994, respectively.)......... $ 1,782,574,411 $ 1,344,594,922
=============== ===============
</TABLE>
See notes to financial statements.
ANNUAL REPORT CALVERT TAX-FREE RESERVES - 33
<PAGE>
Calvert Tax-Free Reserves
Statements of Changes in Net Assets
==========
<TABLE>
<CAPTION>
Limited-Term Limited-Term
Portfolio Portfolio
Year Ended Year Ended
Increase (Decrease) in Net Assets Dec. 31, 1995 Dec. 31, 1994
=================================================================================================
<S> <C> <C>
Operations
Net investment income......................................... $ 22,125,945 $ 24,117,187
Net realized gain (loss) on investments....................... (7,886) (432,419)
Change in unrealized appreciation or depreciation
of investments............................................... 6,379,282 (7,554,146)
------------- -------------
Increase (Decrease) in Net Assets
Resulting from Operations................................... 28,497,341 16,130,622
------------- -------------
Distributions to shareholders from
Net investment income:
Class A shares............................................... (20,871,817) (23,358,514)
Class C shares............................................... (1,108,847) (618,044)
------------- -------------
Total distributions........................................... (21,980,664) (23,976,558)
------------- -------------
Capital share transactions
Shares sold:
Class A shares............................................... 116,789,453 314,859,198
Class C shares............................................... 19,784,285 45,905,038
Reinvestment of distributions:
Class A shares............................................... 18,399,341 23,358,822
Class C shares............................................... 1,059,645 617,853
Shares redeemed:
Class A shares............................................... (228,473,875) (449,139,926)
Class C shares............................................... (22,214,540) (15,157,766)
------------- -------------
Total capital share transactions.............................. (94,655,691) (79,556,781)
------------- -------------
Total Increase (Decrease) in Net Assets........................ (88,139,014) (87,402,717)
Net Assets
=================================================================================================
Beginning of year.............................................. 575,902,637 663,305,354
------------- -------------
End of year (including undistributed net investment income of
$282,318 and $223,011 for 1995 and 1994, respectively.)....... $ 487,763,623 $ 575,902,637
============= =============
</TABLE>
See notes to financial statements.
34- CALVERT TAX-FREE RESERVES ANNUAL REPORT
<PAGE>
Calvert Tax-Free Reserves
Statements of Changes in Net Assets
==========
<TABLE>
<CAPTION>
Long-Term Long-Term
Portfolio Portfolio
Year Ended Year Ended
Increase (Decrease) in Net Assets Dec. 31, 1995 Dec. 31, 1994
==================================================================================================
<S> <C> <C>
Operations
Net investment income......................................... $ 3,028,694 $ 2,850,934
Net realized gain (loss) on investments....................... 772,934 (444,711)
Change in unrealized appreciation or depreciation
of investments............................................... 4,039,827 (3,669,995)
----------- ------------
Increase (Decrease) in Net Assets
Resulting from Operations................................... 7,841,455 (1,263,772)
----------- ------------
Distributions to shareholders from
Net investment income:
Class A shares............................................... (2,815,221) (2,806,743)
Class C shares............................................... (53,252) (19,132)
Net realized gain on investments:
Class A shares............................................... (300,655) ----
Class C shares............................................... (8,878) ----
----------- ------------
Total distributions........................................... (3,178,006) (2,825,875)
----------- ------------
Capital share transactions
Shares sold:
Class A shares............................................... 11,805,684 8,288,022
Class C shares............................................... 947,016 1,019,280
Reinvestment of distributions:
Class A shares............................................... 2,727,932 2,806,743
Class C shares............................................... 59,797 19,131
Shares redeemed:
Class A shares............................................... (9,010,280) (14,965,055)
Class C shares............................................... (293,958) (145,491)
----------- ------------
Total capital share transactions.............................. 6,236,191 (2,977,370)
----------- ------------
Total Increase (Decrease) in Net Assets........................ 10,899,640 (7,067,017)
Net Assets
==================================================================================================
Beginning of year.............................................. 48,137,126 55,204,143
----------- ------------
End of year (including undistributed net investment income of
$185,973 and $23,901 for 1995 and 1994, respectively.)........ $59,036,766 $ 48,137,126
=========== ============
</TABLE>
See notes to financial statements.
ANNUAL REPORT CALVERT TAX-FREE RESERVES - 35
<PAGE>
Notes To Financial Statements
Note A--Significant Accounting Policies
General: The Calvert Tax-Free Reserves (the "Fund") is registered under the
Investment Company Act of 1940 as a diversified, open-end management investment
company. The Fund is comprised of six separate portfolios, three of which are
reported herein; Money Market, Limited-Term and Long-Term. The operations of
each series are accounted for separately. Each Portfolio offers shares of
beneficial interest. Money Market Class O and Class MMP shares are sold without
a sales charge. Limited-Term and Long-Term offer both Class A and Class C
shares. Class A shares are sold with a maximum front-end sales charge of 2.00%
for Limited-Term and 3.75% for Long-Term. Class C shares, which have no
transaction-based sales charge, have a higher annual expense rate than Class A.
Each class has different: (a) dividend rates due to differences in Distribution
Plan expenses and other class specific expenses, (b) exchange privileges and (c)
class specific voting rights.
On October 2, 1995, the net assets of Calvert Money Management Plus Tax-Free
Portfolio, approximately $44 million, were merged into Money Market creating the
Class MMP shares of Money Market.
Security Valuation: Municipal securities are valued utilizing the average of
bid prices or at bid prices based on a matrix system (which considers such
factors as security prices, yields, maturities and ratings) furnished by dealers
through an independent pricing service. Securities listed or traded on a
national securities exchange are valued at the last reported sale price. All
securities for Money Market are valued at amortized cost which approximates
market. Short-term securities maturing within 60 days are valued at amortized
cost which approximates market. Other securities and assets for which market
quotations are not available or deemed inappropriate are valued in good faith
under the direction of the Board of Trustees.
Options: Long-Term may write or purchase option securities. The option premium
is the basis for recognition of unrealized or realized gain or loss on the
option. The cost of securities acquired or the proceeds from securities sold
through the exercise of the option is adjusted by the amount of the premium.
Futures Contracts: Long-Term may enter into futures contracts agreeing to buy
or sell a financial instrument for a set price at a future date. The Portfolio
maintains securities with a value equal to its obligation under each contract.
Initial margin deposits of either cash or securities are made upon entering in
futures contracts; thereafter, variation margin payments are made or received
daily reflecting the change in market value. Unrealized or realized gains and
losses are recognized based on the change in market value. Risks of futures
contracts arise from the possible illiquidity of the futures markets and the
movement in the value of the investment or in interest rates.
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.
36 - CALVERT TAX-FREE RESERVES ANNUAL REPORT
<PAGE>
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 for Money Market; dividends from net investment income
are declared and paid monthly for Limited-Term and Long-Term. 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.
Expense Offset Arrangements: The Fund has an arrangement with its custodian
bank whereby the custodian's fees are paid indirectly by credits earned on the
Fund's cash on deposit with the bank. Such 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 Acacia
Mutual Life Insurance 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 monthly fees based on the following
annual rates of average daily net assets:
<TABLE>
<CAPTION>
FIRST $500 NEXT $500 OVER
MILLION MILLION $1 BILLION
=================================================================
<S> <C> <C> <C>
Money Market.............. .50% .45% .40%
Limited-Term.............. .60% .50% .40%
Long-Term................. .60% .50% .40%
</TABLE>
Calvert Distributors, Inc. (the successor of Calvert Securities Corp. effective
April, 1995), both affiliates of the Advisor, is the distributor and principal
underwriter for the Fund. Distribution Plans, adopted by Class MMP of Money
Market, Class A of Long-Term and Class C of both Limited-Term and Long-Term,
allow the Portfolios to pay the distributor for expenses and services associated
with distribution of shares. The expenses paid may not exceed an annual rate of
average daily net assets of: .35% on Class MMP and Class A, and .55% and 1% on
Class C of Limited-Term and Long-Term, respectively.
The Distributor received $10,900 and $21,661 as its portion of commissions
charged on sales of the Limited-Term and Long-Term Class A shares, respectively.
Calvert Shareholder Services, Inc., an affiliate of the Advisor, acts as
transfer, dividend disbursing and shareholder servicing agent for the Fund.
Calvert Administrative Services Company, an affiliate of the Advisor, provides
administrative services to the Fund for an annual fee, payable monthly of
ANNUAL REPORT CALVERT TAX-FREE RESERVES - 37
<PAGE>
$200,000, which is allocated to all of the Portfolios of the Fund based on their
relative net assets.
Each Trustee who is not affiliated with the Advisor receives an annual fee of
$20,250 plus up to $1,200 for each Board and Committee meeting attended.
Trustee's fees are allocated to each of the funds served.
Note C--Investment Activity
During the year, purchases and sales of investments, other than short-term
securities, were:
<TABLE>
<CAPTION>
Limited-Term Long-Term
- ----------------------------------------------------------------------
<S> <C> <C>
Purchases................................ $118,021,894 $30,226,253
Sales.................................... 286,909,872 29,018,090
</TABLE>
Money Market held only short-term investments.
The cost of investments owned at December 31, 1995 was substantially the same
for federal income tax and financial reporting purposes for each Portfolio. The
following table presents the components of net unrealized appreciation
(depreciation) and the net realized capital loss carryforward with expiration
dates:
<TABLE>
<CAPTION>
Money
Market Limited-Term Long-Term
- -----------------------------------------------------------------------
<S> <C> <C> <C>
Unrealized appreciation.......... ---- $3,168,175 $4,083,477
Unrealized depreciation.......... ---- (12,181) ----
----------- ----------
Net............................. ---- $3,155,994 $4,083,477
=========== ==========
Capital loss carry forward....... $99,863 $ 492,172 ----
Expiration dates................. 2003 2002 ----
</TABLE>
Capital losses may be utilized to offset future capital gains until expiration.
As a cash management practice, Portfolios may sell or purchase short-term
variable rate demand notes from other Portfolios managed by the Advisor. The
transactions are effected at par with no gain or loss to the Portfolio, in
accordance with policies of the Fund.
38 - CALVERT TAX-FREE RESERVES ANNUAL REPORT
<PAGE>
Note D--Capital Shares
Transactions in shares of beneficial interest ("capital shares") for the years
ended December 31, 1995 and 1994 were:
<TABLE>
<CAPTION>
Reinvestment
of Shares Net Share
1995 Share Activity Shares Sold Distributions Redeemed Activity
====================================================================================================
<S> <C> <C> <C> <C>
Money Market:
Class O................ 6,744,165,972 63,374,528 (6,411,381,797) 396,158,703
Class MMP.............. 57,608,751 332,568 (16,212,303) 41,729,016
Limited-Term:
Class A................ 10,928,746 1,722,285 (21,385,078) (8,734,047)
Class C................ 1,858,790 99,532 (2,086,783) (128,461)
Long-Term:
Class A................ 707,071 163,655 (542,469) 328,257
Class C................ 56,987 3,580 (18,019) 42,548
Reinvestment
of Shares Net Share
1994 Share Activity Shares Sold Distributions Redeemed Activity
====================================================================================================
Money Market:
Class O................ 4,996,477,020 40,442,830 (5,192,809,177) (155,889,327)
Class MMP.............. ---- ---- ---- ----
Limited-Term:
Class A................ 29,453,262 2,188,498 (42,078,519) (10,436,759)
Class C................ 4,324,589 58,608 (1,441,091) 2,942,106
Long-Term:
Class A................ 510,683 173,527 (917,754) (233,544)
Class C................ 66,606 1,282 (12,497) 55,391
</TABLE>
ANNUAL REPORT CALVERT TAX-FREE RESERVES - 39
<PAGE>
Financial Highlights
Money Market Portfolio
==========
<TABLE>
<CAPTION>
Class O Shares Class O Shares Class O Shares
Year Ended Year Ended Year Ended
Dec. 31, 1995 Dec. 31, 1994 Dec. 31, 1993
======================================================================================================================
<S> <C> <C> <C>
Net asset value, beginning of year............. $ 1.00 $ 1.00 $ 1.00
============= ============= =============
Income from investment operations
- ---------------------------------
Net investment income......................... .040 .028 .024
------------- ------------- -------------
Distributions from
- ------------------
Net investment income......................... (.040) (.028) (.024)
------------- ------------- -------------
Net asset value, end of year................... $ 1.00 $ 1.00 $ 1.00
============= ============= =============
Total return................................... 4.02% 2.81% 2.41%
============= ============= =============
Ratios to average net assets:
Net investment income......................... 3.93% 2.75% 2.37%
============= ============= =============
Total expenses +.............................. .62% ---- ----
============= ============= =============
Net expenses.................................. .61% .62% .60%
============= ============= =============
Net assets, end of year (in thousands)........ $1,740,839 $1,344,595 $1,500,614
============= ============= =============
Number of shares outstanding at end
of year (in thousands)........................ 1,740,948 1,344,668 1,500,557
============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
Class MMP Shares
From Inception
Class O Shares Class O Shares Oct. 2, 1995
Year Ended Year Ended Through
Dec. 31, 1992 Dec. 31, 1991 Dec. 31, 1995
======================================================================================================================
<S> <C> <C> <C>
Net asset value, beginning of period........... $ 1.00 $ 1.00 $ 1.00
============= ============= =============
Income from investment operations
- ---------------------------------
Net investment income......................... .031 .048 .008
------------- ------------- -------------
Distributions from
- ------------------
Net investment income......................... (.031) (.048) (.008)
------------- ------------- -------------
Net asset value, end of period................. $ 1.00 $ 1.00 $ 1.00
============= ============= =============
Total return................................... 3.18% 4.96% .79%
============= ============= =============
Ratios to average net assets:
Net investment income......................... 3.10% 4.79% 3.19%(a)
============= ============= =============
Total expenses +.............................. ---- ---- 1.35%(a)
============= ============= =============
Net expenses.................................. .59% .61% 1.34%(a)
============= ============= =============
Net assets, end of period (in thousands)...... $1,552,106 $1,382,330 $41,736
============= ============= =============
Number of shares outstanding at end
of period (in thousands)...................... 1,552,061 1,382,288 41,732
============= ============= =============
</TABLE>
40 - CALVERT TAX-FREE RESERVES ANNUAL REPORT
<PAGE>
Financial Highlights
Limited-Term Portfolio
==========
<TABLE>
<CAPTION> Class A Shares Class A Shares Class A Shares
Year Ended Year Ended Year Ended
Dec. 31, 1995 Dec. 31, 1994 Dec. 31, 1993
========================================================================================================================
<S> <C> <C> <C>
Net asset value, beginning of year................... $ 10.59 $ 10.72 $ 10.68
============= ============= =============
Income from investment operations
- ---------------------------------
Net investment income............................... .45 .39 .38
Net realized and unrealized gain (loss)
on investments..................................... .13 (.13) .04
------------- ------------- -------------
Total from investment operations.................... .58 .26 .42
------------- ------------- -------------
Distributions from
- ------------------
Net investment income............................... (.45) (.39) (.38)
------------- ------------- -------------
Total increase (decrease) in net asset value......... .13 (.13) .04
------------- ------------- -------------
Net asset value, end of year......................... $ 10.72 $ 10.59 $ 10.72
============= ============= =============
Total return*........................................ 5.55% 2.42% 4.02%
============= ============= =============
Ratios to average net assets:
Net investment income............................... 4.21% 3.60% 3.59%
============= ============= =============
Total expenses +.................................... .71% ---- ----
============= ============= =============
Net expenses........................................ .70% .66% .67%
============= ============= =============
Portfolio turnover................................... 33% 27% 14%
============= ============= =============
Net assets, end of year (in thousands)............... $457,707 $544,822 $663,305
============= ============= =============
Number of shares outstanding at end
of year (in thousands).............................. 42,690 51,424 61,861
============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
Class A Shares Class A Shares
Year Ended Year Ended
Dec. 31, 1992 Dec. 31, 1991
========================================================================================================================
<S> <C> <C>
Net asset value, beginning of year...................................... $ 10.65 $ 10.61
============= =============
Income from investment operations
- ---------------------------------
Net investment income.................................................. .49 .64
Net realized and unrealized gain (loss)
on investment operations.............................................. .03 .03
------------- -------------
Total from investment operations....................................... .52 .67
------------- -------------
Distributions from
- ------------------
Net investment income.................................................. (.49) (.63)
------------- -------------
Total increase (decrease) in net asset value............................ .03 .04
------------- -------------
Net asset value, end of year............................................ $ 10.68 $ 10.65
============= =============
Total return*........................................................... 4.99% 6.46%
============= =============
Ratios to average net assets:
Net investment income.................................................. 4.58% 5.99%
============= =============
Total expenses +....................................................... ---- ----
============= =============
Net expenses........................................................... .71% .73%
============= =============
Portfolio turnover...................................................... 5% 1%
============= =============
Net assets, end of year (in thousands)................................. $567,419 $294,308
============= =============
Number of shares outstanding at end
of year (in thousands)................................................. 53,140 27,644
============= =============
</TABLE>
ANNUAL REPORT CALVERT TAX-FREE RESERVES - 41
<PAGE>
Financial Highlights
Limited-Term Portfolio
(Continued)
==========
<TABLE>
<CAPTION>
Class C Shares
From Inception
Class C Shares Mar. 1, 1994
Year Ended Through
Dec. 31, 1995 Dec. 31, 1994
========================================================================================================================
<S> <C> <C>
Net asset value, beginning of period.......................... $ 10.56 $ 10.70
============= =============
Income from investment operations
- ---------------------------------
Net investment income........................................ .38 .27
Net realized and unrealized gain (loss)
on investment operations.................................... .13 (.12)
------------- --------------
Total from investment operations............................. .51 .15
------------- --------------
Distributions from
- ------------------
Net investment income........................................ (.39) (.29)
------------- --------------
Total increase (decrease) in net asset value.................. .12 (.14)
------------- --------------
Net asset value, end of period................................ $ 10.68 $ 10.56
============= ==============
Total return.................................................. 4.86% 1.43%
============= =============
Ratios to average net assets:
Net investment income........................................ 3.57% 3.05%(a)
============= =============
Total expenses +............................................. 1.35% ----
============= =============
Net expenses................................................. 1.34% 1.38%(a)
============= =============
Portfolio turnover............................................ 33% 27%
============= =============
Net assets, end of period (in thousands)...................... $30,057 $31,081
============= =============
Number of shares outstanding at end
of period (in thousands)..................................... 2,814 2,942
============= =============
</TABLE>
42 - CALVERT TAX-FREE RESERVES ANNUAL REPORT
<PAGE>
Financial Highlights
Long-Term Portfolio
==========
<TABLE>
<CAPTION>
Class A Shares Class A Shares Class A Shares
Year Ended Year Ended Year Ended
Dec. 31, 1995 Dec. 31, 1994 Dec. 31, 1993
==============================================================================================
<S> <C> <C> <C>
Net asset value, beginning of year............ $ 15.83 $ 17.15 $ 16.32
============= ============== ==============
Income from investment operations
- ---------------------------------
Net investment income........................ .95 .93 .94
Net realized and unrealized gain (loss)
on investments.............................. 1.53 (1.33) .83
------------- -------------- --------------
Total from investment operations............. 2.48 (.40) 1.77
------------- -------------- --------------
Distributions from
- ------------------
Net investment income........................ (.91) (.92) (.94)
Net realized gains........................... (.09) ---- ----
------------- -------------- --------------
Total distributions......................... (1.00) (.92) (.94)
------------- -------------- --------------
Total increase (decrease) in net asset value.. 1.48 (1.32) .83
------------- -------------- --------------
Net asset value, end of year.................. $ 17.31 $ 15.83 $ 17.15
============= ============== ==============
Total return*................................. 16.05% (2.30%) 11.12%
============= ============== ==============
Ratios to average net assets:
Net investment income........................ 5.71% 5.73% 5.59%
============= ============== ==============
Total expenses+.............................. .87% ---- ----
============= ============== ==============
Net expenses................................. .85% .81% .78%
============= ============== ==============
Portfolio turnover............................ 58% 98% 97%
============= ============== ==============
Net assets, end of year (in thousands)........ $57,359 $47,267 $55,204
============= ============== ==============
Number of shares outstanding at end
of year (in thousands)....................... 3,314 2,985 3,219
============= ============== ==============
Class A Shares Class A Shares
Year Ended Year Ended
Dec. 31, 1992 Dec. 31, 1991
==============================================================================================
Net asset value, beginning of year........................ $ 16.11 $ 15.35
============== ==============
Income from investment operations
- ---------------------------------
Net investment income.................................... .98 .97
Net realized and unrealized gain (loss)
on investments.......................................... .20 .78
-------------- --------------
Total from investments................................... 1.18 1.75
-------------- --------------
Distributions from
- ------------------
Net investment income.................................... (.97) (.99)
Net realized gains....................................... ---- ----
-------------- --------------
Total distributions..................................... (.97) (.99)
-------------- --------------
Total increase (decrease) in net asset value.............. .21 .76
-------------- --------------
Net asset value, end of year.............................. $ 16.32 $ 16.11
============== ==============
Total return*............................................. 7.60% 11.77%
============== ==============
Ratios to average net assets:
Net investment income.................................... 6.06% 6.39%
============== ==============
Total expenses+.......................................... ---- ----
============== ==============
Net expenses............................................. .82% .78%
============== ==============
Portfolio turnover........................................ 196% 276%
============== ==============
Net assets, end of year (in thousands).................... $45,665 $43,774
============== ==============
Number of shares outstanding at end
of year (in thousands)................................... 2,799 2,718
============== ==============
</TABLE>
ANNUAL REPORT CALVERT TAX-FREE RESERVES - 43
<PAGE>
Financial Highlights
Long-Term Portfolio
(Continued)
==========
<TABLE>
<CAPTION>
Class C Shares
From Inception
Class C Shares Mar. 1, 1994
Year Ended Through
Dec. 31, 1995 Dec. 31, 1994
==============================================================================
<S> <C> <C>
Net asset value, beginning of period.......... $15.72 $16.86
============== ==============
Income from investment operations
- ---------------------------------
Net investment income........................ .78 .58
Net realized and unrealized gain (loss)
on investments.............................. 1.46 (1.04)
-------------- --------------
Total from investment operations............. 2.24 (.46)
-------------- --------------
Distributions from
- ------------------
Net investment income........................ (.74) (.68)
Net realized gains........................... (.09) ----
-------------- --------------
Total distributions......................... .83 (.68)
-------------- --------------
Total increase (decrease) in net asset value.. 1.41 (1.14)
-------------- --------------
Net asset value, end of period................ $17.13 $15.72
============== ==============
Total return*................................. 14.51% (2.24%)
============== ==============
Ratios to average net assets:
Net investment income........................ 4.34% 3.57%(a)
============== ==============
Total expenses+.............................. 2.19% ----
============== ==============
Net expenses................................. 2.17% 2.55%(a)
============== ==============
Expenses reimbursed.......................... ---- 3.06%(a)
============== ==============
Portfolio turnover............................ 58% 98%
============== ==============
Net assets, end of period (in thousands)...... $1,678 $ 871
============== ==============
Number of shares outstanding at end
of period (in thousands)..................... 98 55
============== ==============
</TABLE>
* Total return is not annualized and does not reflect deduction of Class A
front-end sales charge.
(a) Annualized
+ 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.
44 - CALVERT TAX-FREE RESERVES ANNUAL REPORT
<PAGE>
[LOGO]
Investing with Vision(TM)
4550 Montgomery Avenue, Suite 1000N
Bethesda, Maryland 20814
<PAGE>
Calvert
Tax-Free Reserves
California And
New Jersey Money
Market Portfolios
Annual
Report
December 31, 1995
[LETTERHEAD OF CALVERT GROUP]
<PAGE>
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
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
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.
<PAGE>
Annual Report-December 31, 1995
======================
CALVERT TAX-FREE RESERVES
CALIFORNIA AND NEW JERSEY
MONEY MARKET PORTFOLIOS
Dear Investors:
The soft-landing theory became a reality during the twelve months ended
December 31, 1995. Gross Domestic Product (GDP) slowed to below 2% annualized,
based on estimates of fourth quarter data. The more sluggish pace of economic
growth kept inflation in check. Interest rates declined as the Federal Reserve
took steps to stimulate the economy during the last two quarters of 1995.
MUNICIPAL RATES
[CHART APPEARS]
Market Summary
The stock and bond markets thrived in this economic climate. Investors poured
money into the stock market as companies continued to generate good earnings
despite the slowing economy. The Standard & Poor's 500(R) Stock Index rose 34%
for the year. Bond investors benefited from a windfall of capital gains as
yields fell. Returns on bonds, generally expected to lag those on stocks, were
as high as 30% for long-term Treasuries. The average taxable money market fund
returned slightly over 5% for the year.
Performance and Strategy
After rising steeply throughout 1994, short-term interest rates fell in 1995.
The California and New Jersey Money Market Portfolios' dividend yields for the
12-month period ending December 31, 1995 were above their year-ago levels
because the drop in rates in 1995 did not push yields as low as they had been
for much of 1994.
California Portfolio
Compound Dividend Yield
[CHART APPEARS]
ANNUAL REPORT CALVERT TAX-FREE RESERVES--CA/NJ MONEY MARKET PORTFOLIO- 1
<PAGE>
Shareholders in the Calvert New Jersey Money Market Portfolio received a proxy
statement earlier this month to vote on a proposed merger of New Jersey Money
Market Portfolio into the larger Calvert Tax-Free Reserves Money Market
Portfolio. Please vote and return your proxy card now if you have not already
done so.
The possibility of tax reform and weakened bond fund investment in short-term
municipal securities kept rates higher than would have been expected. Throughout
1995, we invested in very short-term, highly liquid securities and benefited
from their relatively more attractive rates.
The municipal markets have recovered from the initial jolt and aftershocks
stemming from Orange County's credit problems. The California Money Market
Portfolio owned $4 million in Orange County notes, backed by an agreement that
guaranteed the Portfolio would recover the notes' full face value. The notes
were paid in full on June 30, 1995.
Outlook
The remarkable and unprecedented turnaround that occurred in the fixed-income
markets over the past 24 months makes it difficult for us to assess the outlook
for 1996. We see no reason to expect a bear bond market, but investors in
longer-term fixed-income securities will probably not see returns as high as
those available in 1995. Continued corporate downsizing, cutbacks in federal
spending, weakened consumer psychology and the still sluggish housing market
will likely keep the economy soft. The Federal Reserve could respond with
additional rate cuts. We would not be surprised to see short-term rates fall
another 50 basis points by mid-year, with this action possibly occurring as
early as the first quarter. Money market yields are not likely to be generous,
but these securities continue to offer investors protection from recent
history's most volatile bond markets.
New Jersey Portfolio
Compound Dividend Yield
[CHART APPEARS]
2 - CALVERT TAX-FREE RESERVES--CA/NJ MONEY MARKET PORTFOLIO ANNUAL REPORT
<PAGE>
We will be carefully monitoring the upcoming elections, especially Republican
and Democratic platforms regarding tax reform. After the elections, when we have
a clearer picture of the political landscape, we should be better able to assess
the likelihood of a change in the tax preference status of municipal securities.
We appreciate your investment in the Calvert Tax-Free Reserves California and
New Jersey Money Market Portfolios.
Sincerely,
/s/ David R. Rochat
David R. Rochat
Senior Vice President
January 17, 1996
Ratings Breakdown
=============
California New Jersey
Portfolio Portfolio
[CHART APPEARS]
All securities in Calvert Group money market funds are eligible securities under
rule 2a-7 of the Investment Company Act of 1940. First Tier Securities are
eligible securities rated in the highest rating category for short-term debt
obligations by at least two of the Nationally Recognized Statistical Ratings
Organizations. Second Tier Securities are eligible securities not in the First
Tier.
ANNUAL REPORT CALVERT TAX-FREE RESERVES--CA/NJ MONEY MARKET PORTFOLIO - 3
<PAGE>
Portfolio Statistics
================
Maturity Schedule
<TABLE>
<CAPTION>
6/30/95 12/31/95
- -------------------------------------------------------------------------
<S> <C> <C>
California
1-60 Days 95% 94%
61-120 Days -- 5%
121-180 Days 3% 1%
181-360 Days 2% --
Weighted Average 15 days 14 days
New Jersey
1-60 Days 79% 87%
61-120 Days 16% 8%
121-180 Days 5% --
181-360 Days -- 5%
Weighted Average 32 days 31 days
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Returns
for periods ended 12/31/95
<S> <C>
California
One Year 3.78%
Five Year 3.27%
Since Inception (10/89) 3.82%
New Jersey
One Year 3.10%
Five Year 2.98%
Since Inception (12/90) 3.00%
</TABLE>
4 - CALVERT TAX-FREE RESERVES--CA/NJ MONEY MARKET PORTFOLIO ANNUAL REPORT
<PAGE>
Portfolio Statistics
==========
Calvert Tax-Free Reserves California
Money Market Portfolio
Change in value of a hypothetical $10,000 investment.
10/89 12/95
$10,000 $12,623
Calvert Tax-Free Reserves New Jersey
Money Market Portfolio
Change in value of a hypothetical $10,000 investment.
12/10/90 12/95
$10,000 $11,614
Total returns assume reinvestment of dividends.
Past performance is no guarantee of future results.
ANNUAL REPORT CALVERT TAX-FREE RESERVES--CA/NJ MONEY MARKET PORTFOLIO- 5
<PAGE>
Report of Independent Accountants
==========
To the Board of Trustees of Calvert Tax-Free Reserves and Shareholders of the
California and New Jersey Money Market Portfolios:
We have audited the accompanying statements of net assets of Calvert Tax-Free
Reserves (comprised of the California and New Jersey Money Market portfolios),
as of December 31, 1995, the related statements of operations for the year then
ended, and statements of changes in net assets and financial highlights for each
of the two years in the period then ended. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits. The financial highlights for each of
the preceding years were audited by other auditors whose report dated January
31, 1994 expressed an unqualified opinion thereon.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of investments owned as of
December 31, 1995, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Calvert Tax-Free Reserves as of December 31, 1995, the results of their
operations for the year then ended and the changes in their net assets and
financial highlights for each of the two years in the period then ended, in
conformity with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Baltimore, Maryland
February 9, 1996
6 - CALVERT TAX-FREE RESERVES--CA/NJ MONEY MARKET PORTFOLIO ANNUAL REPORT
<PAGE>
Calvert Tax-Free Reserves
California Money Market Portfolio
Statement of Net Assets
December 31, 1995
==========
<TABLE>
<CAPTION>
Principal
Amount Value
================================================================================================
<S> <C> <C>
California Municipal Obligations (99.2%)
$2,000,000 Auburn Unified School District Certificates of Participation VRDN,
5.45%, 12/1/19, LOC: Bank of California.......................... $2,000,000
3,700,000 Barstow Multi-Family Housing Revenue VRDN, 5.55%, 4/1/18,
LOC: Mercury S & L............................................... 3,700,000
6,800,000 California Buena Park Community Development Authority VRDN,
5.355%, 12/28/99, GA: Connecticut Mutual......................... 6,800,000
2,000,000 California Housing Finance Agency Revenue Bonds, 4.25%, 8/1/17,
TOA: Bank of America............................................. 2,000,000
2,000,000 California Housing Finance Agency Revenue Bonds, 4.25%, 8/1/15,
TOA: Bank of America............................................. 2,000,000
2,410,000 California Housing Finance Agency Revenue VRDN, 5.29%, 8/1/10,
INSUR: MBIA...................................................... 2,410,000
2,000,000 California Housing Finance Agency Revenue VRDN, 5.25%, 2/1/23,
TOA: Dai-Ichi Kangyo Bank........................................ 2,000,000
750,000 California Pollution Control Financing Authority Revenue VRDN,
6.13%, 3/1/08, LOC: Banque National de Paris..................... 750,000
10,000,000 California State Revenue Anticipation Warrants/Notes P-Floats VRDN,
4.00%, 4/25/96, BPA: Banque National de Paris.................... 10,000,000
14,000,000 California Valleys Housing Finance Authority Revenue Bonds, 5.75%,
7/1/25, LOC: Sumitomo Bank, Ltd.................................. 14,000,000
1,100,000 Chula Vista Industrial Development Authority VRDN, 5.30%, 12/1/21,
LOC: Bank of California.......................................... 1,100,000
4,650,000 City of Palmdale Community Redevelopment Agency VRDN, 5.525%,
12/1/05, LOC: National Bank of Canada............................ 4,650,000
2,875,000 Commerce California Joint Powers Financing Authority VRDN, 5.45%,
11/1/14, LOC: Bank of America.................................... 2,875,000
4,825,000 Custodial Receipt 1992 Series VRDN, 5.35%, 10/1/07, INSUR: MBIA.... 4,825,000
1,700,000 Fairfield Industrial Development Authority VRDN, 5.45%, 4/1/12,
LOC: Wells Fargo Bank NA......................................... 1,700,000
1,200,000 Fresno Multi-Family Housing VRDN, 6.50%, 5/1/15,
LOC: Tokai Bank Ltd.............................................. 1,200,000
3,075,000 Glendora Industrial Development Authority VRDN, 4.263%, 12/1/16,
LOC: Bank of California.......................................... 3,075,000
7,050,000 Hemet Multi-Family Housing Authority VRDN, 5.55%, 7/1/06,
C/LOC: Mercury S&L............................................... 7,050,000
7,900,000 Hemet Multi-Family Housing Authority VRDN, 5.55%, 8/15/04,
C/LOC: Redland S&L............................................... 7,900,000
3,000,000 Irvine Public Facilities Revenue VRDN, 5.25%, 11/1/10,
LOC: National Westminster Bank................................... 3,000,000
800,000 Irvine Ranch Water District Revenue VRDN, 6.00%, 4/1/33,
LOC: Bank of America............................................. 800,000
2,000,000 Irvine Ranch Water District Revenue VRDN, 6.00%, 5/1/09,
LOC: Bank of America............................................. 2,000,000
1,700,000 Irvine Ranch Water District Revenue VRDN, 5.90%, 8/1/16,
LOC: Morgan Guaranty Trust....................................... 1,700,000
</TABLE>
ANNUAL REPORT CALVERT TAX-FREE RESERVES--CA/NJ MONEY MARKET PORTFOLIO- 7
<PAGE>
Calvert Tax-Free Reserves
California Money Market Portfolio
Statement of Net Assets (Continued)
December 31, 1995
==========
<TABLE>
<CAPTION>
Principal
Amount Value
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C>
$3,000,000 Lancaster Multi-Family Housing VRDN, 5.375%, 11/1/04,
LOC: Household Federal Savings........................................... $3,000,000
12,500,000 Loma Linda Multi-Family Housing Revenue VRDN, 6.35%, 7/1/19,
LOC: Tokai Bank Ltd...................................................... 12,500,000
2,000,000 Los Angeles County Tax & Revenue Anticipation Notes, 4.50%, 7/1/96,
LOC: Multi-Bank.......................................................... 2,006,690
4,700,000 Los Angeles County Industrial Development Authority Revenue VRDN,
6.13%, 9/1/07, LOC: Banque National de Paris............................. 4,700,000
5,825,000 Midpeninsula Regional VRDN, 5.30%, 2/1/08, LOC: Fuji Bank Ltd.............. 5,825,000
6,540,000 Oceanside Multi-Family Housing VRDN, 5.45%, 8/1/17,
SURBD: Continental Casualty.............................................. 6,540,000
4,600,000 Oceanside Multi-Family Housing VRDN, 5.375%, 12/1/07,
C/LOC: Western Federal S&L............................................... 4,600,000
8,800,000 Olcese Water District Certificates of Participation, 3.95%, 2/1/16,
LOC: Sumitomo Bank Ltd................................................... 8,800,000
2,500,000 Orange County Apartment Development Revenue VRDN, 6.65%,
11/1/08, LOC: Tokai Bank Ltd............................................. 2,500,000
350,000 Orange County Apartment Development Revenue VRDN, 5.50%,
3/1/07, LOC: Tokai Bank Ltd.............................................. 350,000
5,000,000 Orange County Apartment Development Revenue VRDN, 5.40%,
4/1/06, LOC: Mitsubishi Trust & Banking.................................. 5,000,000
9,000,000 Orange County Apartment Development Revenue VRDN, 5.55%,
10/1/07, LOC: Mitsubishi Bank Ltd........................................ 9,000,000
5,030,000 Orange County Apartment Development Revenue VRDN, 5.75%,
12/1/16, LOC: Bank of Tokyo Ltd.......................................... 5,030,000
500,000 Orange County Certificates of Participation, Florence Crittendon Services
VRDN, 5.00%, 3/1/16, LOC: Swiss Bank Corp................................ 500,000
9,200,000 Orange County Multi-Family Housing VRDN, 5.50%, 11/1/05,
LOC: First Interstate Bank Corp.......................................... 9,200,000
13,700,000 Orange County Multi-Family Housing VRDN, 6.80%, 4/1/24,
LOC: Tokai Bank Ltd...................................................... 13,700,000
3,900,000 Orange County Sanitation Districts 1, 2, & 3 Certificates of Participation,
5.05%, 8/1/13, INSUR: AMBAC.............................................. 3,900,000
9,214,532 Palmdale School District Project Lease VRDN, 5.75%, 12/13/10,
LOC: National Westminster Bank........................................... 9,214,532
1,874,286 Palmdale School District Project Lease VRDN, 5.75%, 12/13/10,
LOC: National Westminster Bank........................................... 1,874,286
5,000,000 Pitney Bowes Credit Corporation LeaseTOPS Trust Certificates,
5.50%, 4/1/98 BPA: Pitney Bowes Credit Corporation....................... 5,000,000
1,000,000 Riverside Multi-Family Housing VRDN, 6.40%, 6/1/09,
LOC: Tokai Bank Ltd...................................................... 1,000,000
2,750,000 Riverside Multi-Family Housing VRDN, 5.375%, 5/1/05,
LOC: Household Federal Savings........................................... 2,750,000
2,890,000 Riverside Multi-Family Housing VRDN, 5.625%,12/1/05,
LOC: Household Federal Savings......................................... 2,890,000
</TABLE>
8 - CALVERT TAX-FREE RESERVES--CA/NJ MONEY MARKET PORTFOLIO ANNUAL REPORT
<PAGE>
Calvert Tax-Free Reserves
California Money Market Portfolio
Statement of Net Assets (Continued)
December 31, 1995
=========
<TABLE>
<CAPTION>
Principal
Amount Value
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C>
$6,635,000 Riverside Multi-Family Housing VRDN, 6.60%, 12/1/16,
LOC: Tokai Bank Ltd........................................................... $6,635,000
4,050,000 Salinas Multi-Family Housing VRDN, 5.625%, 12/1/16,
C/LOC: Mercury S&L............................................................ 4,050,000
5,000,000 San Bernadino Multi-Family Housing Revenue Bonds,
6.00%, 5/1/15................................................................. 5,000,000
3,150,000 San Bernadino Multi-Family Housing Revenue VRDN, 5.55%,
6/1/15, C/LOC: Mercury S&L.................................................... 3,150,000
1,000,000 San Bernadino Multi-Family Housing VRDN, 5.375%, 6/1/05,
LOC: Household Federal Savings................................................ 1,000,000
4,000,000 San Diego Multi-Family Housing VRDN, 5.70%, 6/1/07,
C/LOC: Mercury S&L............................................................ 4,000,000
5,000,000 San Francisco Multi-Family Housing VRDN, 5.75%, 10/1/00,
LOC: Mitsubishi Trust & Banking............................................... 5,000,000
3,500,000 San Marcos Industrial Development Authority VRDN, 4.86%, 12/1/20,
LOC: Bank of California....................................................... 3,500,000
2,000,000 San Marcos Redevelopment VRDN, 4.013%, 12/1/10,
LOC: Bank of America.......................................................... 2,000,000
4,033,000 Santa Ana Industrial Development VRDN, 6.35%, 10/1/15,
LOC: Tokai Bank Ltd........................................................... 4,033,000
1,500,000 Santa Ana Multi-Family Housing VRDN, 5.65%, 12/1/07
C/LOC: Mercury S&L............................................................ 1,500,000
3,250,000 Santa Ana Multi-Family Housing VRDN, 6.80%, 12/1/16,
LOC: Tokai Bank Ltd........................................................... 3,250,000
4,000,000 Santa Ana Unified School District Certificates of Participation
VRDN, 5.50%, 7/1/15, LOC: Sanwa Bank Ltd...................................... 4,000,000
3,000,000 Southeast Resource Recovery Facility Authority Lease Revenue Bonds,
5.15%, 12/1/18, LOC: Industrial Bank of Japan................................. 3,000,000
2,740,000 Stockton County Nursing Home VRDN, 4.263%, 12/1/16,
LOC: Bank of California....................................................... 2,740,000
1,360,000 Stockton Heritage Convalescent Center Project VRDN, 5.95%, 12/1/05,
LOC: Tokai Bank Ltd........................................................... 1,360,000
2,500,000 Stockton Multi-Family Housing VRDN, 4.90%, 9/1/18,
LOC: Bank of America.......................................................... 2,500,000
8,000,000 Union City Multi-Family Housing Revenue VRDN, 5.65%, 10/1/11,
LOC: Mitsubishi Trust & Banking............................................... 8,000,000
10,000,000 Victor Valley Community College Revenue VRDN, 5.65%, 11/1/24,
GA: Anchor National Life...................................................... 10,000,000
4,300,000 Victorville Multi-Family Housing VRDN, 5.55%, 12/1/15,
C/LOC: Redland S&L............................................................ 4,300,000
11,500,000 Victorville Multi-Family Housing VRDN, 5.55%, 12/1/15,
C/LOC: Union Federal S&L...................................................... 11,500,000
------------
TOTAL INVESTMENTS (Cost $297,933,508) 99.2%................................. 297,933,508
Other assets and liabilities, net 0.8%...................................... 2,417,493
------------
NET ASSETS 100%............................................................. $300,351,001
============
</TABLE>
ANNUAL REPORT CALVERT TAX-FREE RESERVES--CA/NJ MONEY MARKET PORTFOLIO - 9
<PAGE>
Calvert Tax-Free Reserves
California Money Market Portfolio
Statement of Net Assets (Continued)
December 31, 1995
=========
<TABLE>
<CAPTION>
Net Assets Consist Of: Value
========================================================================================
<S> <C>
Paid-in capital applicable to 300,544,451 shares of beneficial interest;
unlimited number of no par value shares authorized...................... $300,544,492
Undistributed net investment income....................................... (50,109)
Accumulated net realized gain (loss) on investments....................... (143,382)
------------
Net Assets................................................................ $300,351,001
============
Net Asset Value Per Share................................................. $1.00
============
</TABLE>
See notes to financial statements.
10 - CALVERT TAX-FREE RESERVES--CA/NJ MONEY MARKET PORTFOLIO ANNUAL REPORT
<PAGE>
Calvert Tax-Free Reserves
New Jersey Money Market Portfolio
Statement of Net Assets
December 31, 1995
==========
<TABLE>
<CAPTION>
Principal
Amount Value
- ------------------------------------------------------------------------------------------------------------
Municipal Obligations (96.8%)
<S> <C> <C>
New Jersey (93.4%)
$ 1,500,000 Hudson County Improvement Authority VRDN, 5.00%, 7/15/26,
LOC: Marine Midland Bank................................................... $ 1,500,000
New Jersey Economic Development Authority VRDN:
1,475,000 5.225%, 3/1/98, LOC: Meridian Bank......................................... 1,475,000
1,364,000 5.10%, 1/1/00, LOC: Marine Midland Bank.................................... 1,364,000
900,000 5.45%, 8/1/01, LOC: CoreStates Bank........................................ 900,000
1,100,000 3.80%, 2/1/02, LOC: Chemical Bank.......................................... 1,100,000
1,500,000 5.28%, 12/1/04, LOC: Credit Suisse......................................... 1,500,000
125,000 4.95%, 8/1/05, LOC: National Westminster Bank.............................. 125,000
1,500,000 4.625%, 12/1/14, LOC: Citibank............................................. 1,500,000
1,360,000 5.65%, 12/1/15, LOC: Meridian Bank......................................... 1,360,000
1,500,000 6.00%, 12/1/15, LOC: Asahi Bank............................................ 1,500,000
1,450,000 5.50%, 8/1/17, LOC: Midlantic National Bank................................ 1,450,000
1,000,000 5.20%, 2/1/19, BPA: PNC Bank............................................... 1,000,000
1,500,000 New Jersey General Obligation Bonds Topstars Series D, 4.95%, 2/15/07,
TOA: Banque National de Paris.............................................. 1,500,000
400,000 New Jersey Health Care VRDN, 4.75%, 7/1/35, LOC: Chemical Bank............... 400,000
870,000 New Jersey Housing and Mortgage Finance Agency Series 87C VRDN,
3.90%, 10/1/15, INSUR: MBIA................................................ 870,000
480,000 New Jersey Housing and Mortgage Finance Agency VRDN, 3.65%,
11/1/14, TOA: Citibank..................................................... 480,000
1,500,000 New Jersey Housing and Mortgage Finance Agency VRDN, 3.80%,
4/1/12, INSUR: MBIA........................................................ 1,500,000
1,400,000 New Jersey Sport & Exposition VRDN, 4.75%, 9/1/23,
BPA: Industrial Bank of Japan.............................................. 1,400,000
1,500,000 New Jersey State Turnpike Authority VRDN, 4.80%, 1/1/18,
INSUR: FGIC................................................................ 1,500,000
2,235,000 Ocean City Utility Authority Bonds, 8.70%, 1/1/11............................ 2,279,700
300,000 Port Authority of New York and New Jersey Special Obligation Revenue Bonds
6.15%, 8/1/28, BPA: Sumitomo Bank, Bank of Tokyo and Sanwa Bank............ 300,000
2,100,000 Salem County Pollution Control DuPont VRDN, 3.75% 3/1/12,
GA: DuPont (E.I.) de Nemours & Co.......................................... 2,100,000
Puerto Rico (3.4%)
1,000,000 Commonwealth Government Development Bank VRDN, 4.50%,
12/1/15, LOC: Credit Suisse................................................ 1,000,000
TOTAL INVESTMENTS (Cost $28,103,700) 96.8%............................... 28,103,700
Other assets and liabilities, net 3.2%................................... 931,771
-----------
NET ASSETS 100%.......................................................... $29,035,471
===========
</TABLE>
ANNUAL REPORT CALVERT TAX-FREE RESERVES--CA/NJ MONEY MARKET PORTFOLIO - 11
<PAGE>
Calvert Tax-Free Reserves
New Jersey Money Market Portfolio
Statement of Net Assets (Continued)
December 31, 1995
=========
<TABLE>
<CAPTION>
Net Assets Consist Of: Value
===========================================================================================================
<S> <C>
Paid-in capital applicable to 29,043,955 shares of beneficial interest; unlimited number
of no par value shares authorized.......................................................... $29,035,601
Accumulated net realized gain (loss) on investments.......................................... (130)
-----------
Net Assets................................................................................... $29,035,471
===========
Net Asset Value Per Share.................................................................. $1.00
===========
</TABLE>
Explanation of Guarantees: Abbreviations:
BPA: Bond-Purchase Agreement VRDN: Variable Rate Demand Notes
C/LOC: Collateralized Letter of Credit
CD: Certificate of Deposit
GIC: Guaranteed Investment Contract
GA: Guaranty Agreement
IA: Investment Agreement
INSUR: Insurance
LOC: Letter of Credit
REPO: Repurchase Agreement
SURBD: Surety Bond
TOA: Tender Option Agreement
TPG: Third Party Guarantee
Certain securities have optional or mandatory tender features which give these
securities a shorter effective maturity date.
See notes to financial statements.
12 - CALVERT TAX-FREE RESERVES--CA/NJ MONEY MARKET PORTFOLIO ANNUAL REPORT
<PAGE>
Calvert Tax-Free Reserves
Statements of Operations
Year Ended December 31, 1995
=========
<TABLE>
<CAPTION>
California New Jersey
Money Money
Market Market
Net Investment Income Portfolio Portfolio
========================================================================================
<S> <C> <C>
Investment Income
Interest income.............................................. $12,683,343 $1,253,285
----------- ----------
Expenses
Investment advisory fee...................................... 1,426,938 160,190
Transfer agency fees and expenses............................ 396,857 71,228
Trustees' fees and expenses.................................. 24,432 2,765
Administrative fees.......................................... 21,183 2,382
Custodian fees............................................... 25,131 6,751
Registration fees............................................ 402 646
Reports to shareholders...................................... 168,635 39,471
Professional fees............................................ 64,835 933
Miscellaneous................................................ 49,364 5,066
----------- ----------
Total expenses.............................................. 2,177,777 289,432
Fees paid indirectly........................................ (25,131) (6,735)
----------- ----------
Net expenses............................................... 2,152,646 282,697
----------- ----------
Net Investment Income...................................... 10,530,697 970,588
----------- ----------
Realized and Unrealized
Gain (Loss) on Investments
========================================================================================
Net realized gain (loss)...................................... (143,382) (130)
Net realized gain (loss) on Tender Option Agreement - Note B.. (600,000) --
Change in unrealized appreciation or depreciation............. 600,000 --
----------- ----------
Net Realized and Unrealized
Gain (Loss) on Investments................................. (143,382) (130)
----------- ----------
Increase (Decrease) in
Net Assets Resulting
From Operations............................................ $10,387,315 $ 970,458
=========== ==========
</TABLE>
See notes to financial statements.
ANNUAL REPORT CALVERT TAX-FREE RESERVES--CA/NJ MONEY MARKET PORTFOLIO - 13
<PAGE>
California Money Market Portfolio
Statements of Changes in Net Assets
=========
<TABLE>
<CAPTION> Year Ended Year Ended
December 31, December 31,
Increase (Decrease) in Net Assets 1995 1994
====================================================================================================
<S> <C> <C>
Operations
Net investment income............................................. $ 10,530,697 $ 7,518,592
Net realized gain (loss) on securities............................ (143,382) 5,228
Net realized gain (loss) on Tender Option Agreement - Note B...... (600,000) --
Change in unrealized appreciation or depreciation of
investments...................................................... 600,000 (600,000)
------------- -------------
Increase (Decrease) in Net
Assets Resulting from Operations................................ 10,387,315 6,923,820
------------- -------------
Distributions to shareholders from
Net investment income............................................. (10,583,766) (7,515,632)
Net realized gain on investments.................................. -- (5,228)
------------- -------------
Total distributions.............................................. (10,583,766) (7,520,860)
------------- -------------
Capital share transactions
Shares sold....................................................... 377,023,687 348,406,303
Reinvestment of distributions..................................... 10,452,688 7,520,860
Shares redeemed................................................... (347,647,512) (392,195,111)
------------- -------------
Total capital share transactions................................. 39,828,863 (36,267,948)
------------- -------------
Contribution of Capital - Note B (Tender Option Agreement)......... -- 600,000
------------- -------------
Total Increase (Decrease) in Net Assets............................ 39,632,412 (36,264,988)
Net Assets
====================================================================================================
Beginning of year.................................................. 260,718,589 296,983,577
------------- -------------
End of year (including undistributed net investment income (loss)
of ($50,109) and $2,960 for 1995 and 1994, respectively.)......... $ 300,351,001 $ 260,718,589
============= =============
</TABLE>
See notes to financial statements.
14 - CALVERT TAX-FREE RESERVES--CA/NJ MONEY MARKET PORTFOLIO ANNUAL REPORT
<PAGE>
New Jersey Money Market Portfolio
Statements of Changes in Net Assets
=========
<TABLE>
<CAPTION> Year Ended Year Ended
December 31, December 31,
Increase (Decrease) in Net Assets 1995 1994
===================================================================================================
<S> <C> <C>
Operations
Net investment income................................................ $ 970,588 $ 711,510
Net realized gain (loss) on investments.............................. (130) --
------------ ------------
Increase (Decrease) in Net
Assets Resulting from Operations................................... 970,458 711,510
------------ ------------
Distributions to shareholders from
Net investment income................................................ (977,719) (710,971)
------------ ------------
Capital share transactions
Shares sold.......................................................... 31,012,389 32,588,821
Reinvestment of distributions........................................ 966,088 710,971
Shares redeemed...................................................... (35,407,953) (38,483,149)
------------ ------------
Total capital share transactions.................................... (3,429,476) (5,183,357)
------------ ------------
Total Increase (Decrease)
in Net Assets......................................................... (3,436,737) (5,182,818)
Net Assets
===================================================================================================
Beginning of year..................................................... 32,472,208 37,655,026
------------ ------------
End of year (including undistributed net investment income (loss) of
$0 and $0 for 1995 and 1994, respectively.).......................... $ 29,035,471 $ 32,472,208
============ ============
</TABLE>
See notes to financial statements.
ANNUAL REPORT CALVERT TAX-FREE RESERVES--CA/NJ MONEY MARKET PORTFOLIO - 15
<PAGE>
Notes To Financial Statements
Note A - Significant Accounting Policies
General: The Calvert Tax-Free Reserves (the "Fund") is registered under the
Investment Company Act of 1940 as an open-end management investment company.
The Fund is comprised of six separate portfolios, two of which are reported
herein: California Money Market ("California") and New Jersey Money Market ("New
Jersey"). The operations of each series are accounted for separately. Each
Portfolio offers shares of beneficial interest to the public with no sales
charges.
Security Valuation: Securities are valued at amortized cost which approximates
market.
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.
Distributions to Shareholders: Distributions to shareholders are recorded by
the Portfolios on ex-dividend date. Dividends from net investment income are
earned 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.
Expense Offset Arrangements: The Fund has an arrangement with its custodian
bank whereby the custodian's fees are paid indirectly by credits earned on the
Portfolios' cash on deposit with the bank. Such 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 Acacia
Mutual Life Insurance 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 of each Portfolio: .50% on
the first $500 million, .45% on the next $500 million and .40% on the excess of
$1 billion.
On December 15, 1994, California entered into a Tender Option Agreement with the
Advisor valued at $600,000 to secure payment of an "at risk" investment. On
June 30, 1995 the investment paid the Portfolio in full and the Option expired
unused. The expiration loss was applied against the Advisor's capital
contribution of the Option.
16 - CALVERT TAX-FREE RESERVES--CA/NJ MONEY MARKET PORTFOLIO ANNUAL REPORT
<PAGE>
Calvert Distributors, Inc. (the successor of Calvert Securities Corp. effective
April, 1995), both affiliates of the Advisor, is the distributor and principal
underwriter for the Fund.
Calvert Shareholder Services, Inc., an affiliate of the Advisor, acts as
transfer, dividend disbursing and shareholder servicing agent for the Fund.
Calvert Administrative Services Company, an affiliate of the Advisor, provides
administrative services to the Fund for an annual fee, payable monthly, of
$200,000 which is allocated to all of the Portfolios of the Fund based on their
relative net assets.
Each Trustee who is not affiliated with the Advisor receives an annual fee of
$20,250 plus up to $1,200 for each Board and Committee meeting attended.
Trustee's fees are allocated to each of the funds served.
Note C - Investment Activity
The cost of investments owned at year end was substantially the same for federal
income tax and financial reporting purposes for each Portfolio. Net realized
capital loss carryforwards of California/New Jersey, for federal income tax
purposes, of $143,382 and $130, respectively, at year end may be utilized to
offset future capital gains until expiration through 2003.
As a cash management practice, the Fund may sell or purchase short-term variable
rate demand notes from other Portfolios managed by the Advisor. The
transactions are effected at par with no gain or loss to the Fund, in accordance
with its policies.
Note D - Capital Shares
Transactions in shares of beneficial interest ("capital shares") were as
follows:
<TABLE>
<CAPTION>
Year Ended Year Ended
Share Activity Dec. 31, 1995 Dec. 31, 1994
===============================================================
<S> <C> <C>
California
Shares Sold.................... 377,023,687 348,406,303
Reinvestment of Distributions.. 10,452,688 7,520,860
Shares Redeemed................ (347,647,512) (392,195,111)
------------ ------------
Net Share Activity............ 39,828,863 (36,267,948)
============ ============
New Jersey
Shares Sold.................... 31,012,389 32,588,821
Reinvestment of Distributions.. 966,088 710,971
Shares Redeemed................ (35,407,953) (38,483,149)
------------ ------------
Net Share Activity............ (3,429,476) (5,183,357)
============ ============
</TABLE>
Note E - Subsequent Event
The shareholders of New Jersey have been asked to vote on April 23, 1996 on a
merger of the Portfolio into Calvert Tax-Free Reserves Money Market Portfolio
("money market"), The merger, if approved, would be effected by the issuance of
shares in Money Market to New Jersey's shareholders in a tax-free exchange for
the net assets of New Jersey.
ANNUAL REPORT CALVERT TAX-FREE RESERVES--CA/NJ MONEY MARKET PORTFOLIO - 17
<PAGE>
Financial Highlights
California Money Market Portfolio
=========
<TABLE>
<CAPTION>
Year Ended Year Ended Year Ended
Dec. 31, 1995 Dec. 31, 1994 Dec. 31, 1993
==================================================================================
<S> <C> <C> <C>
Net asset value, beginning of year...... $ 1.00 $ 1.00 $ 1.00
======== ======== ========
Income from investment operations
- ---------------------------------
Net investment income.................. .037 .026 .022
-------- -------- --------
Distributions from
- ------------------
Net investment income.................. (.037) (.026) (.022)
-------- -------- --------
Net asset value, end of year............ $ 1.00 $ 1.00 $ 1.00
======== ======== ========
Total return............................ 3.78* 2.62%* 2.26%
======== ======== ========
Ratios to average net assets:
Net investment income.................. 3.69% 2.55% 2.22%
======== ======== ========
Total expenses+........................ .76% ---- ----
======== ======== ========
Net expenses........................... .75% .69% .69%
======== ======== ========
Net assets, end of year (in thousands).. $300,351 $260,719 $296,984
======== ======== ========
Number of shares outstanding at end
of year (in thousands)................. 300,544 260,716 296,984
======== ======== ========
</TABLE>
<TABLE>
<CAPTION>
Year Ended Year Ended
Dec. 31, 1992 Dec. 31, 1991
====================================================================
<S> <C> <C>
Net asset value, beginning of year...... $ 1.00 $ 1.00
======== ========
Income from investment operations
- ---------------------------------
Net investment income.................. .030 .045
-------- --------
Distributions from
- ------------------
Net investment income.................. (.030) (.045)
-------- --------
Net asset value, end of year............ $ 1.00 $ 1.00
======== ========
Total return............................ 3.08% 4.64%
======== ========
Ratios to average net assets:
Net investment income.................. 3.01% 4.51%
======== ========
Total expenses+........................ -- --
======== ========
Net expenses........................... .68% .60%
======== ========
Net assets, end of year (in thousands).. $323,928 $287,984
======== ========
Number of shares outstanding at
end of year (in thousands)............. 323,928 287,984
======== ========
</TABLE>
18 - CALVERT TAX-FREE RESERVES--CA/NJ MONEY MARKET PORTFOLIO ANNUAL REPORT
<PAGE>
Financial Highlights
New Jersey Money Market Portfolio
=========
<TABLE>
<CAPTION>
Year Ended Year Ended Year Ended
Dec. 31, 1995 Dec. 31, 1994 Dec. 31, 1993
==========================================================================================
<S> <C> <C> <C>
Net asset value, beginning of year...... $ 1.00 $ 1.00 $ 1.00
======= ======= =======
Income from investment operations
- ---------------------------------
Net investment income.................. .031 .022 .018
------- ------- -------
Distributions from
- ------------------
Net investment income.................. (.031) (.022) (.018)
------- ------- -------
Net asset value, end of year............ $ 1.00 $ 1.00 $ 1.00
======= ======= =======
Total return............................ 3.10% 2.21% 1.85%
======= ======= =======
Ratios to average net assets:
Net investment income.................. 3.03% 2.15% 1.83%
======= ======= =======
Total expenses+........................ .90% -- --
======= ======= =======
Net expenses........................... .88% .84% .79%
======= ======= =======
Expenses reimbursed.................... -- -- --
======= ======= =======
Net assets, end of year (in thousands).. $29,035 $32,472 $37,655
======= ======= =======
Number of shares outstanding at end
of year (in thousands)................. 29,044 32,473 37,657
======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
Year Ended Year Ended
Dec. 31, 1992 Dec. 31, 1991
==========================================================================
<S> <C> <C>
Net asset value, beginning of year...... $ 1.00 $ 1.00
======= =======
Income from investment operations
- ---------------------------------
Net investment income.................. .028 .048
------- -------
Distributions from
- ------------------
Net investment income.................. (.028) (.048)
------- -------
Net asset value, end of year............ $ 1.00 $ 1.00
======= =======
Total return............................ 2.83% 4.95%
======= =======
Ratios to average net assets:
Net investment income.................. 2.78% 4.63%
======= =======
Total expenses+........................ -- --
======= =======
Net expenses........................... .66% .24%
======= =======
Expenses reimbursed.................... -- .05%
======= =======
Net assets, end of year (in thousands).. $53,264 $61,924
======= =======
Number of shares outstanding at end
of year (in thousands)................. 53,264 61,924
======= =======
</TABLE>
* Total return numbers do not reflect Tender Option Agreement (see Note B)
+ 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.
ANNUAL REPORT CALVERT TAX-FREE RESERVES--CA/NJ MONEY MARKET PORTFOLIO - 19
<PAGE>
THIS PAGE LEFT INTENTIONALLY BLANK
20 - CALVERT TAX-FREE RESERVES--CA/NJ MONEY MARKET PORTFOLIO ANNUAL REPORT
<PAGE>
INVESTING with VISION [LOGO OF CALVERT GROUP]
4550 Montgomery Avenue, Suite 1000N
Bethesda, Maryland 20814
<PAGE>
Calvert
Tax-Free
Reserves
Vermont
Municipal
Portfolio
Annual
Report
December 31, 1995
[CALVERT GROUP LETTERHEAD]
<PAGE>
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
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
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.
<PAGE>
ANNUAL REPORT--DECEMBER 31, 1995
==========
CALVERT TAX-FREE RESERVES
VERMONT MUNICIPAL PORTFOLIO
Dear Investors:
The soft-landing theory became a reality during the twelve months ended
December 31, 1995. Gross Domestic Product (GDP) slowed to below 2% annualized,
based on estimates of fourth quarter data. The more sluggish pace of economic
growth kept inflation in check. Interest rates declined as the Federal Reserve
took steps to stimulate the economy during the last two quarters of 1995.
Market Summary
The stock and bond markets thrived in this economic climate. Investors poured
money into the stock market as companies continued to generate good earnings
despite the slowing economy. Stocks were also selected as an alternative to
bonds as yields on fixed-income investments declined. The Standard & Poor's
500(R) Stock Index rose 34% for the year.
Bond investors benefited from a windfall of capital gains as yields fell.
Returns on bonds, generally expected to lag those on stocks, were as high as 30%
for long-term Treasuries. Money market investors paid a big price for security,
with the average taxable money market fund returning just over 5% for the year.
Performance and Strategy
Municipal bond rates backed down in 1995, after rising steeply through 1994.
Returns on municipal bonds lagged taxable bonds, but were still near the high
end of their historical range. Talk of tax reform looks to have kept some
investors from taking advantage of munis' solid performance. Supply was thin as
state and local governments kept a tight rein on spending. This put some upward
pressure on municipal bond prices.
The Calvert Vermont Municipal Portfolio generated a double-digit return for
the twelve months ending December 31, 1995. While strongly positive, the
Portfolio's return was a bit behind the return on an average of similar funds.
This is largely due to weaker performance in January, when we needed to sell
securities to meet redemptions and therefore
Municipal Rates
[CHART APPEARS HERE]
ANNUAL REPORT CALVERT TAX-FREE RESERVES--VERMONT MUNICIPAL PORTFOLIO - 1
<PAGE>
did not participate fully in the bond market's strong performance during that
month. In the later months of the year, the Portfolio generated returns that
were much more in line with those of its peer group average.
In general, the Portfolio's returns tend to be in line with those of its
benchmark during bull bond markets and above them in bear markets, as we have
been successful in protecting principal against the full effects of price
declines. In 1994, for example, the Vermont Portfolio's 12-month return was 343
basis points ahead of its benchmark, compared to 1995, where we lagged by 142
basis points. (A basis point is one hundredth of a percent.)
Outlook
The past 24 months in the bond market have been remarkable. Nineteen ninety-
four was one of the three worst markets since 1926, the earliest year for which
Ibbotson & Associates tracks bond market performance. Nineteen ninety-five was
one of the three strongest markets since 1926 and one of only two years in which
long-term Treasuries have returned over 30%. The strength of these bull and bear
markets is extreme, and the chance of their occurring, as they did, in
consecutive years is infinitesimally small. If there's a lesson for investors
here, it is that predicting the direction of the market is impossible and one
would do well to stick to a long-term investment plan rather than react to
short-term market swings. Those investors who held their course after a drubbing
in 1994 were amply rewarded in 1995.
Given the recent dramatic market moves, it's difficult to assess the outlook
for 1996. We see no reason to expect a bear market, but investors should not
anticipate returns as strong as 1995's. Continued corporate downsizing, cutbacks
in federal spending, weakened consumer psychology and the still sluggish housing
market will likely keep the economy soft. The Federal Reserve could respond with
additional rate cuts. We would not be surprised to see short-term rates fall
another 50 basis points by mid-year, with this action possibly occurring as
early as the first quarter.
We will be carefully monitoring the upcoming elections, especially Republican
and Democratic platforms regarding tax reform. After the elections, when we have
a clearer picture of the political landscape, we should be better able to assess
the likelihood of a change in the tax preference status of municipal bonds. In
our opinion, investorshave already discounted for some of the uncertainty ahead,
and the municipal bond market
Investment Performance
<TABLE>
<CAPTION>
Periods Ended 12/31/95 6 Months 12 Months
<S> <C> <C>
Vermont Municipal
Portfolio 6.83% 14.86%
Lipper Other States
Muni Fund Avg. 6.88% 16.28%
</TABLE>
Investment performance is for Class A shares and does
not reflect the deduction of any front-end sales charge.
2 - CALVERT TAX-FREE RESERVES--VERMONT MUNICIPAL PORTFOLIO ANNUAL REPORT
<PAGE>
looks attractively valued. Right now, munis are yielding about 87% to 90% of the
30-year Treasury, for a taxable equivalent yield well above Treasuries.
We appreciate your investment in the Calvert Tax-Free Reserves Vermont
Portfolio.
Sincerely,
/s/ David Rochat
David Rochat
Senior Vice President
January 17, 1996
Ratings Breakdown
Vermont Municipal Portfolio
NR: Obligation is not rated by a commercial credit rating service, such as
Moody's Investors Services, 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.
ANNUAL REPORT CALVERT TAX-FREE RESERVES--VERMONT MUNICIPAL PORTFOLIO - 3
<PAGE>
Portfolio Statistics
Weighted Average Maturity
6/30/95 12/31/95
- ----------------------------------------------------------------
Vermont Municipal Portfolio 14 years 14 years
SEC Yields
Class A Class C
Thirty Days Ended 12/31/95 12/31/95
- ----------------------------------------------------------------
Vermont Municipal Portfolio 4.60% 3.49%
Yields assume reinvestment of dividends.
Average Annual Total Returns
for periods ended 12/31/95
- ----------------------------------------------------------------
Class A Shares
One Year 10.54%
Since Inception (4/91) 7.19%
Class C Shares
One Year 12.88%
Since Inception (3/94) 5.07%
Calvert Tax-Free Reserves Vermont Municipal Portfolio
Comparison of change in value of a hypothetical $10,000 investment.
[CHART APPEARS HERE]
Total returns assume reinvestment of dividends and, for Class A shares, reflect
the deduction of the fund's maximum sales charge of 3.75%. No sales charge has
been applied to the index used for comparison. The value of an investment in
Class A shares is plotted in the line graph. The value of an investment in Class
C shares would be different. Past performance is no guarantee of future returns.
4 - CALVERT TAX-FREE RESERVES--VERMONT MUNICIPAL PORTFOLIO ANNUAL REPORT
<PAGE>
Report of Independent Accountants
===============
To the Board of Trustees of Calvert Tax-Free Reserves and Shareholders of
Vermont Municipal Portfolio:
We have audited the accompanying statement of net assets of Vermont Municipal
Portfolio (one of the portfolios comprising Calvert Tax-Free Reserves), as of
December 31, 1995, and the related statement of operations for the year then
ended, and statement of changes in net assets and financial highlights for each
of the two years then ended. These financial statements and financial highlights
are the responsibility of the Fund's management. Our responsibility is to
express an opinion on these financial statements and financial highlights based
on our audits. The financial highlights for each of the preceeding years were
audited by other auditors whose report dated January 31, 1994 expressed an
unqualified opinion thereon.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of investments owned as of
December 31, 1995, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Vermont Municipal Portfolio as of December 31, 1995, the results of its
operations for the year then ended, and the changes in its net assets and
financial highlights for each of the two years in the period then ended, in
conformity with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Baltimore, Maryland
February 9, 1996
ANNUAL REPORT CALVERT TAX-FREE RESERVES--VERMONT MUNICIPAL PORTFOLIO - 5
<PAGE>
Calvert Tax-Free Reserves
Vermont Municipal Portfolio
Statement of Net Assets
December 31, 1995
==========
<TABLE>
<CAPTION>
Principal
Amount Value
- ------------------------------------------------------------------------------------------------------------
<C> <S> <C>
Municipal Obligations (97.8%)
Puerto Rico (0.4%)
$210,000 Puerto Rico Public Improvement Bonds, 6.60%, 7/1/97, FGIC Insured............ $218,618
Vermont (97.4%)
2,000,000 Burlington Electric Revenue Bonds, 6.25%, 7/1/14, MBIA Insured............... 2,132,960
600,000 Burlington Electric Revenue Bonds, 7.25%, 7/1/06, MBIA Insured............... 622,566
Burlington Public Improvement General Obligation Bonds:
265,000 6.40%, 5/1/01.............................................................. 281,610
700,000 6.50%, 5/1/02.............................................................. 744,016
100,000 6.50%, 5/1/04.............................................................. 105,653
220,000 6.50%, 5/1/06.............................................................. 231,048
1,700,000 Chittenden Unlimited Tax General Obligation Bonds, 6.60%, 1/1/12,
Asset Guaranty Insured..................................................... 1,833,841
Rutland County Solid Waste General Obligation Bonds:
110,000 5.80%, 11/1/99............................................................. 116,134
110,000 5.95%, 11/1/00............................................................. 117,796
110,000 6.10%, 11/1/01............................................................. 119,176
110,000 6.25%, 11/1/02............................................................. 120,877
110,000 6.35%, 11/1/03............................................................. 122,158
110,000 6.45%, 11/1/04............................................................. 123,362
105,000 6.50%, 11/1/05............................................................. 118,420
100,000 6.55%, 11/1/06............................................................. 113,289
100,000 6.60%, 11/1/07............................................................. 113,678
100,000 6.70%, 11/1/08............................................................. 114,420
100,000 6.75%, 11/1/09............................................................. 115,150
100,000 6.80%, 11/1/10............................................................. 116,022
100,000 6.80%, 11/1/11............................................................. 116,404
100,000 6.85%, 11/1/12............................................................. 117,608
3,765,000 University of Vermont & State Agricultural College Revenue Bonds,
5.80%, 7/1/13.............................................................. 3,841,091
1,800,000 Vermont Education and Health - Central Vermont Hospital, 7.00%,
10/1/22.................................................................... 1,854,288
2,095,000 Vermont Education and Health - Middlebury College, 6.00%, 11/1/13............ 2,202,851
2,000,000 Vermont Education and Health - Northwestern Medical Center,
6.25%, 9/1/18.............................................................. 1,964,140
580,000 Vermont Education and Health - Norwich University, 5.75%, 9/1/05............. 618,953
1,500,000 Vermont Education and Health - Norwich University, 6.00%, 9/1/13............. 1,530,735
1,000,000 Vermont Education and Health - Southwestern Vermont Medical Center,
5.625%, 5/1/25, FSA Insured................................................ 1,006,320
1,085,000 Vermont Education and Health - St. Johnsbury Academy, 7.30%, 4/15/18......... 1,184,212
Vermont Education and Health - St. Michael's College:
2,000,000 7.05%, 10/1/16............................................................. 2,234,140
50,000 7.40%, 6/1/99.............................................................. 54,286
125,000 7.80%, 6/1/02.............................................................. 135,712
</TABLE>
6 - CALVERT TAX-FREE RESERVES--VERMONT MUNICIPAL PORTFOLIO ANNUAL REPORT
<PAGE>
Calvert Tax-Free Reserves
Vermont Municipal Portfolio
Statement of Net Assets (Continued)
December 31, 1995
==========
<TABLE>
<CAPTION>
Principal
Amount Value
- ------------------------------------------------------------------------------------------------------------
<C> <S> <C>
$750,000 Vermont Education and Health - Vermont Medical Center Bonds,
6.00%, 9/1/22, FGIC Insured................................................ $782,917
1,000,000 Vermont Housing Finance Agency Single Family Mortgage Revenue Bonds,
Series 4, 6.40%, 11/1/25................................................... 1,024,270
65,000 Vermont Housing Finance Authority Home Mortgage Purchase Series A
Bonds, 7.25%, 12/1/00...................................................... 68,057
175,000 Vermont Housing Finance Authority Single Family Series 1 Housing
Bonds, 8.15%, 5/1/25....................................................... 187,110
1,200,000 Vermont Housing Finance Authority Single Family Series 2 Housing
Bonds, 7.20%, 11/1/11...................................................... 1,258,236
Vermont Municipal Bond Bank Revenue Bonds:
75,000 Series 1, 7.30%, 12/1/96................................................... 77,398
130,000 Series 1, 7.35%, 12/1/97................................................... 137,760
420,000 Series 1, 6.60%, 12/1/98................................................... 448,862
130,000 Series 1, 7.35%, 12/1/98................................................... 140,821
670,000 Series 1, 6.80%, 12/1/01................................................... 755,070
150,000 Series 1, 8.00%, 12/1/08................................................... 173,667
1,000,000 Series 1, 5.375%, 12/1/13.................................................. 1,004,920
1,500,000 Series 1, 6.875%, 12/1/22.................................................. 1,717,365
100,000 Series 2, 6.50%, 12/1/96................................................... 102,604
100,000 Series 2, 6.50%, 12/1/97................................................... 104,766
200,000 Series 2, 6.50%, 12/1/98................................................... 213,198
500,000 Series 2, 7.10%, 12/1/99................................................... 551,525
500,000 Series 2, 6.60%, 12/1/00................................................... 551,835
100,000 Series 2, 7.25%, 12/1/00................................................... 110,715
175,000 Series 2, 7.40%, 12/1/01................................................... 194,469
105,000 Series 2, 7.50%, 12/1/02................................................... 116,968
160,000 Series 2, 7.60%, 12/1/03................................................... 178,674
750,000 Series B, 7.25%, 12/1/98................................................... 786,285
190,000 Vermont Public Power Supply Authority Bonds, 6.50%, 7/1/99,
AMBAC Insured.............................................................. 198,018
1,000,000 Vermont State College Revenue Bonds, 8.00%, 7/1/18........................... 1,144,200
1,015,000 Vermont State College Revenue Bonds, 5.125%, 7/1/18.......................... 951,278
Vermont State General Obligation Bonds:
25,000 6.70%, 2/1/99.............................................................. 26,927
1,500,000 5.70%, 1/15/00............................................................. 1,584,570
1,740,000 6.50%, 2/1/01.............................................................. 1,914,052
500,000 5.40%, 8/1/02.............................................................. 528,895
2,500,000 6.30%, 1/15/06............................................................. 2,800,250
500,000 6.50%, 2/1/07.............................................................. 558,560
1,000,000 6.40%, 2/1/08.............................................................. 1,122,830
1,000,000 4.90%, 2/1/10.............................................................. 982,000
1,000,000 6.45%, 2/1/11.............................................................. 1,125,470
1,950,000 6.45%, 2/1/12.............................................................. 2,194,667
</TABLE>
ANNUAL REPORT CALVERT TAX-FREE RESERVES----VERMONT MUNICIPAL PORTFOLIO - 7
<PAGE>
Calvert Tax-Free Reserves
Vermont Municipal Portfolio
Statement of Net Assets (Continued)
December 31, 1995
==========
<TABLE>
<CAPTION>
Principal
Amount Value
- ------------------------------------------------------------------------------------------------------------
<C> <S> <C>
$400,000 Vermont State General Obligation Bonds, Zero Coupon, 8/01/08................. $210,764
300,000 Vermont State General Obligation Bonds, Zero Coupon, 8/01/09................. 148,545
2,440,000 Vermont State Lease Certificates of Participation, 6.50%, 7/1/11,
MBIA Insured ............................................................ 2,674,948
2,000,000 Vermont Student Assistance Corporation Education Loan Series A
Revenue Bonds, 6.50%, 6/15/00, AMBAC Insured............................... 2,135,040
2,240,000 Vermont Student Assistance Corporation Education Loan Series A-3
Revenue Bonds, 6.50%, 12/15/05, FSA Insured................................ 2,374,310
1,000,000 Vermont Student Assistance Corporation Education Loan Series B Revenue
Bonds, 6.70%, 12/15/12, FSA Insured........................................ 1,081,100
400,000 Windham County Solid Waste General Obligation Bonds, 6.40%, 12/1/97.......... 400,144
-----------
Total Municipal Obligations (Cost $55,347,623)............................. 59,285,594
-----------
Contracts
- ------------------------------------------------------------------------------------------------------------
Options Purchased (0.3%)
111 Call Options on March U.S. Treasury Bond Futures, Expiration 2/17/96,
Strike Price 122 (Premium $160,672)........................................ 161,297
-----------
TOTAL INVESTMENTS (Cost and Premium $55,508,295) 98.1%................... 59,446,891
Other assets and liabilities, net 1.9%.................................. 1,150,816
-----------
NET ASSETS 100%.......................................................... $60,597,707
===========
Net Assets Consist Of:
- ------------------------------------------------------------------------------------------------------------
Each class of shares of beneficial interest has an unlimited
number of no par shares authorized
Paid-in capital:
Class A: 3,621,399 shares outstanding.................................................... $56,044,215
Class C: 24,027 shares outstanding....................................................... 375,869
Undistributed net investment income......................................................... 184,905
Accumulated net realized gain (loss)........................................................ 54,122
Net unrealized appreciation (depreciation) on investments................................... 3,938,596
-----------
Net assets................................................................................ $60,597,707
===========
Net Asset Value Per Share Value
- ------------------------------------------------------------------------------------------------------------
Class A (based on net assets of $60,203,303)............................................... $16.62
===========
Class C (based on net assets of $394,404).................................................. $16.42
===========
</TABLE>
<TABLE>
<S> <C>
Abbreviations:
AMBAC -- AMBAC Indemnity Corporation FSA -- Financial Security Assurance
FGIC -- Financial Guaranty Insurance Company MBIA -- MBIA Insurance Corporation
</TABLE>
See notes to financial statements.
8 - CALVERT TAX-FREE RESERVES--VERMONT MUNICIPAL PORTFOLIO ANNUAL REPORT
<PAGE>
Calvert Tax-Free Reserves
Vermont Municipal Portfolio
Statement of Operations
Year Ended December 31, 1995
==========
<TABLE>
<CAPTION>
Net Investment Income
- ------------------------------------------------------------------
<S> <C>
Investment Income
Interest income.................................... $3,810,720
----------
Expenses
Investment advisory fee............................ 374,867
Transfer agency fees and expenses.................. 28,325
Distribution Plan expenses of Class C.............. 4,304
Trustees' fees and expenses........................ 5,493
Administrative fees................................ 4,648
Custodian fees..................................... 4,473
Registration fees.................................. 3,321
Reports to shareholders............................ 23,711
Professional fees.................................. 14,596
Miscellaneous...................................... 15,846
----------
Total expenses................................... 479,584
Fees paid indirectly............................. (4,473)
----------
Net expenses................................... 475,111
----------
Net Investment Income........................ 3,335,609
----------
Realized and Unrealized Gain (Loss)
on Investments
- ------------------------------------------------------------------
Net realized gain (loss) on securities............... 933,331
Net realized gain (loss) on futures.................. (103,961)
----------
829,370
Change in unrealized appreciation or depreciation.... 4,506,456
----------
Net Realized and Unrealized Gain (Loss)
on Investments............................... 5,335,826
----------
Increase (Decrease) in Net Assets
Resulting from Operations.................... $8,671,435
==========
</TABLE>
See notes to financial statements.
ANNUAL REPORT CALVERT TAX-FREE RESERVES--VERMONT MUNICIPAL PORTFOLIO - 9
<PAGE>
Calvert Tax-Free Reserves
Vermont Municipal Portfolio
Statements of Changes in Net Assets
==========
<TABLE>
<CAPTION>
Year Ended Year Ended
Increase (Decrease) in Net Assets Dec. 31, 1995 Dec. 31, 1994
- -------------------------------------------------------------------------------------------------
<S> <C> <C>
Operations
Net investment income.......................................... $ 3,335,609 $ 3,673,693
Net realized gain (loss) on investments........................ 829,370 (484,977)
Change in unrealized appreciation or
depreciation of investments.................................. 4,506,456 (5,190,091)
------------ ------------
Net Increase (Decrease) in Net Assets
Resulting from Operations.................................... 8,671,435 (2,001,375)
------------ ------------
Distributions to shareholders from
Net investment income:
Class A shares............................................... (3,270,290) (3,576,718)
Class C shares............................................... (18,419) (6,942)
Net realized gain:
Class A shares............................................... (336,995) --
Class C shares............................................... (2,227) --
------------ ------------
Total distributions............................................ (3,627,931) (3,583,660)
------------ ------------
Capital share transactions
Shares sold:
Class A shares............................................... 4,860,473 10,180,856
Class C shares............................................... 430,193 272,417
Reinvestment of distributions:
Class A shares............................................... 2,192,127 3,576,743
Class C shares............................................... 19,158 6,942
Shares redeemed:
Class A shares............................................... (16,079,754) (11,601,337)
Class C shares............................................... (306,328) (46,253)
------------ ------------
Total capital share transactions............................... (8,884,131) 2,389,368
------------ ------------
Total Increase (Decrease) in Net Assets.......................... (3,840,627) (3,195,667)
Net Assets
- -------------------------------------------------------------------------------------------------
Beginning of year.............................................. 64,438,334 67,634,001
------------ ------------
End of year (including undistributed net investment income of
$184,905 and $109,243 for 1995 and 1994, respectively.)...... $ 60,597,707 $ 64,438,334
============ ============
</TABLE>
See notes to financial statements.
10 - CALVERT TAX-FREE RESERVES--VERMONT MUNICIPAL PORTFOLIO ANNUAL REPORT
<PAGE>
Notes To Financial Statements
Note A--Significant Accounting Policies
General: The Vermont Municipal Portfolio (the "Portfolio"), a series of Calvert
Tax-Free Reserves (the "Fund"), is registered under the Investment Company Act
of 1940 as a nondiversified, open-end management investment company. The
operations of each series are accounted for separately. The Portfolio offers
Class A and Class C shares of beneficial interest. Class A shares are sold with
a maximum front-end sales charge of 3.75%. Class C shares, which have no
transaction-based sales charge, have a higher annual expense rate than Class A.
Each class has different: (a) dividend rates, due to differences in Distribution
Plan expenses and other class specific expenses, (b) exchange privileges and (c)
class specific voting rights.
Security Valuation: Municipal securities are valued utilizing the average of
bid prices or at bid prices based on a matrix system (which considers such
factors as security prices, yields, maturities and ratings) furnished by dealers
through an independent pricing service. Securities listed or traded on a
national securities exchange are valued at the last reported sale price. Short-
term securities maturing within 60 days are valued at amortized cost which
approximates market. Other securities and assets for which market quotations are
not available or deemed inappropriate are valued in good faith under the
direction of the Board of Trustees.
Options: The Portfolio may write or purchase option securities. The option
premium is the basis for recognition of unrealized or realized gain or loss on
the option. The cost of securities acquired or the proceeds from securities sold
through the exercise of the option is adjusted by the amount of the premium.
Futures Contracts: The Portfolio may enter into futures contracts agreeing to
buy or sell a financial instrument for a set price at a future date. The
Portfolio maintains securities with a value equal to its obligation under each
contract. Initial margin deposits of either cash or securities are made upon
entering in futures contracts; thereafter, variation margin payments are made or
received daily reflecting the change in market value. Unrealized or realized
gains and losses are recognized based on the change in market value. Risks of
futures contracts arise from the possible illiquidity of the futures markets and
the movement in the value of the investment or in interest rates.
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.
Distributions to Shareholders: Distributions to shareholders are recorded by
the Portfolio on ex-dividend date. Dividends from net investment income are
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 Portfolio's capital
accounts to reflect income and gains available for distribution under income tax
regulations.
ANNUAL REPORT CALVERT TAX-FREE RESERVES--VERMONT MUNICIPAL PORTFOLIO - 11
<PAGE>
Expense Offset Arrangements: The Portfolio has an arrangement with its
custodian bank whereby the custodian's fees are paid indirectly by credits
earned on the Portfolio's cash on deposit with the bank. Such deposit
arrangement is an alternative to overnight investments.
Federal Income Taxes: No provision for federal income or excise tax is required
since the Portfolio 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 Acacia
Mutual Life Insurance Company. The Advisor provides investment advisory
services and pays the salaries and fees of officers and affiliated Trustees of
the Portfolio. For its services, the Advisor receives a monthly fee based on an
annual rate of .60% of the Portfolio's average daily net assets.
Calvert Distributors, Inc. (the successor of Calvert Securities Corp. effective
April, 1995), both affiliates of the Advisor, is the distributor and principal
underwriter for the Portfolio. A Distribution Plan, adopted by Class C
shareholders, allows the Portfolio 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 C.
The Distributor received $16,150 as its portion of commisssions charged on sales
of the Portfolio's Class A shares.
Calvert Shareholder Services, Inc., an affiliate of the Advisor, acts as
transfer, dividend disbursing and shareholder servicing agent for the Portfolio.
Calvert Administrative Services Company, an affiliate of the Advisor, provides
administrative services to the Fund for an annual fee, payable monthly, of
$200,000 which is allocated to all of the Portfolios of the Fund based on their
relative net assets.
Each Trustee who is not affiliated with the Advisor receives an annual fee of
$20,250 plus up to $1,200 for each Board and Committee meeting attended.
Trustee's fees are allocated to each of the funds served.
12 - CALVERT TAX-FREE RESERVES--VERMONT MUNICIPAL PORTFOLIO ANNUAL REPORT
<PAGE>
Note C--Investment Activity
During the year, purchases and sales of investments, other than short-term, were
$7,106,781 and $16,099,679, respectively.
The cost of investments owned at December 31, 1995 was substantially the same
for federal income tax and financial reporting purposes. Net unrealized
appreciation aggregated $3,938,596, of which $3,942,175 related to appreciated
securities and $3,579 related to depreciated securities.
As a cash management practice, the Portfolio may sell or purchase short-term
variable rate demand notes from other Portfolios managed by the Advisor. The
transactions are effected at par with no gain or loss to the Portfolio, in
accordance with policies of the Fund.
Note D--Capital Shares
Transactions in shares of beneficial interest ("capital shares") were as
follows:
<TABLE>
<CAPTION>
Year Ended Year Ended
Class A Share Activity Dec. 31, 1995 Dec. 31, 1994
- -------------------------------------------------------------------------------
<S> <C> <C>
Shares Sold........................... 302,854 632,654
Reinvestment of Distributions......... 136,701 224,912
Shares Redeemed....................... (1,003,353) (732,439)
---------- --------
Net Share Activity.................. (563,798) 125,127
========== ========
From Inception
Mar. 1, 1994
Year Ended Through
Class C Share Activity Dec. 31, 1995 Dec. 31, 1994
- -------------------------------------------------------------------------------
Shares Sold........................... 27,415 17,148
Reinvestment of Distributions......... 1,195 445
Shares Redeemed....................... (19,207) (2,969)
---------- --------
Net Share Activity.................. 9,403 14,624
========== ========
</TABLE>
ANNUAL REPORT CALVERT TAX-FREE RESERVES--VERMONT MUNICIPAL PORTFOLIO - 13
<PAGE>
Financial Highlights
==========
<TABLE>
<CAPTION>
Class A Shares Class A Shares Class A Shares
Year Ended Year Ended Year Ended
Dec. 31, 1995 Dec. 31, 1994 Dec. 31, 1993
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of year.............. $ 15.34 $ 16.66 $ 15.83
======= ======= =======
Income from investment operations
- ---------------------------------
Net investment income.......................... .87 .87 .86
Net realized and unrealized gain on
investments................................... 1.35 (1.35) .82
------- ------- -------
Total from investment operations............. 2.22 (.48) 1.68
------- ------- -------
Distributions from
- ------------------
Net investment income.......................... (.85) (.84) (.85)
Net realized gains............................. (.09) -- --
------- ------- -------
Total distributions.......................... (.94) (.84) (.85)
------- ------- -------
Total increase (decrease) in net asset value.... 1.28 (1.32) .83
------- ------- -------
Net asset value, end of year.................... $ 16.62 $ 15.34 $ 16.66
======= ======= =======
Total return*................................... 14.86% (2.88%) 10.84%
======= ======= =======
Ratios to average net assets:
Net investment income.......................... 5.35% 5.47% 5.25%
======= ======= =======
Total expenses+................................ .76% -- --
======= ======= =======
Net expenses................................... .75% .73% .72%
======= ======= =======
Portfolio turnover.............................. 12% 11% 5%
======= ======= =======
Net assets, end of year (in thousands).......... $60,203 $64,215 $67,634
======= ======= =======
Number of shares outstanding at
end of year (in thousands)..................... 3,621 4,185 4,060
======= ======= =======
</TABLE>
14 - CALVERT TAX-FREE RESERVES--VERMONT MUNICIPAL PORTFOLIO ANNUAL REPORT
<PAGE>
Financial Highlights (Continued)
==========
<TABLE>
<CAPTION>
Class C
Class A Shares Shares
From From
Inception Class C Inception
Class A Shares April 1, 1991 Shares Mar. 1, 1994
Year Ended Through Year Ended Through
Dec. 31, 1992 Dec. 31, 1991 Dec. 31, 1995 Dec. 31, 1994
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period... $ 15.58 $ 15.00 $15.26 $16.40
======= ======= ====== ======
Income from investment operations
- ---------------------------------
Net investment income................ .84 .68 .58 .51
Net realized and unrealized gain
on investments..................... .31 .58 1.35 (1.06)
------- ------- ------ ------
Total from investment
operations....................... 1.15 1.26 1.93 (.55)
------- ------- ------ ------
Distributions from
- ------------------
Net investment income................ (.84) (.66) (.68) (.59)
Net realized gains................... (.06) (.02) (.09) --
------- ------- ------ ------
Total distributions................ (.90) (.68) (.77) (.59)
------- ------- ------ ------
Total increase (decrease)
in net asset value................... .25 .58 1.16 (1.14)
------- ------- ------ ------
Net asset value, end of period......... $ 15.83 $ 15.58 $16.42 $15.26
======= ======= ====== ======
Total return*.......................... 4.99% 11.43%(a) 12.88% (2.94%)
======= ======= ====== ======
Ratios to average net assets:
Net investment income................ 5.41% 5.97%(a) 3.61% 3.87%(a)
======= ======= ====== ======
Total expenses+...................... -- -- 2.47% --
======= ======= ====== ======
Net expenses......................... .62% .28%(a) 2.46% 2.41%(a)
======= ======= ====== ======
Expenses reimbursed.................. -- .06%(a) -- 1.85%(a)
======= ======= ====== ======
Portfolio turnover..................... 11% 8% 12% 11%
======= ======= ====== ======
Net assets, end of period
(in thousands)....................... $53,179 $38,828 $ 394 $ 223
======= ======= ====== ======
Number of shares outstanding at
end of period (in thousands)......... 3,359 2,492 24 15
======= ======= ====== ======
</TABLE>
* Total return is not annualized and does not reflect deduction of Class A
front-end sales charge.
(a) Annualized
+ 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.
ANNUAL REPORT CALVERT TAX-FREE RESERVES--VERMONT MUNICIPAL PORTFOLIO - 15
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16 - CALVERT TAX-FREE RESERVES--VERMONT MUNICIPAL PORTFOLIO ANNUAL REPORT
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[CALVERT GROUP LETTERHEAD]
4550 Montgomery Avenue, Suite 1000N
Bethesda, Maryland 20814
