June 30, 1999
Semi-annual
Report
Calvert Tax-Free Reserves
<PAGE>
Table of Contents
President's Letter
1
Portfolio
Manager Remarks
2
Statement of
Net Assets
8
Statements of Operations
25
Statements of Changes in Net Assets
26
Notes to
Financial Statements
30
Financial Highlights
33
Shareholder Meeting Update
38
Year 2000 Update
40
<PAGE>
Dear Shareholders:
Here is your semi-annual report for the six-
month period ending
June 30, 1999. For the most current
information regarding the
performance of your fund, please visit our
recently redesigned Web
site at www.calvertgroup.com.
In reviewing our recently redesigned Web
site, you will see that we now offer more
interactive information tools to help you
make the most informed investment decisions.
At www.calvertgroup.com you will find fund
performance, profiles and literature, as
well as a rich array of information on
socially responsible and tax free investing.
Our
site also includes company profiles, issues
briefs and our award winning "Know What You
Own(R)" service.
Of special note, we have taken online
disclosure a step further this month by
publishing the entire portfolio holdings for
each of our equity funds. Calvert Group is
the first mutual fund family to provide a
complete listing of holdings on a monthly
basis.
Of course, knowing how a fund has performed
is as important as knowing the companies
that are in a Portfolio. I'm pleased to
report that a significant number of our
funds have received a three-star or better
Morningstar rating for their performance
over the past
three years. For performance over the same
time frame, two funds -- Calvert Income Fund
and Calvert Tax-Free Reserves Limited Term
Portfolio -- received Morningstar's
superlative five-star rating.1 More detail
about your fund's performance is included in
this report.
As always, we encourage investors to make
decisions based on your financial objectives
and tolerance for risk. You should routinely
review your asset allocation to be sure you
are positioned at a comfortable risk level.
Your financial professional can suggest
strategies that keep you on track to meet
long-term financial objectives without
exposing you to undue levels of risk.
We appreciate your investment in Calvert
Group funds and look forward to providing
competitive returns in the future.
Sincerely,
Barbara J. Krumsiek
President and CEO
July 20, 1999
1 A Morningstar five-star ranking indicates
that the fund is in the top 10% of all
investment companies in a category, a four
star ranking indicates that the fund is in
the next 22.5%, and a three-star ranking is
in the middle 35%.
<PAGE>
Tom Dailey is a member of the CAMCO
portfolio management team.
Calvert Tax-Free Reserves Money Market
Portfolio seeks to earn the highest interest
income exempt from federal income taxes as
is consistent with prudent investment
management, preservation of capital and the
quality and maturity characteristics of the
Portfolio.
Fund
Information
asset allocation
tax-exempt
money market
NASDAQ symbol
CTMXX
CUSIP number
131620-10-6
Calvert Tax-Free Reserves
Money Market Portfolio
How did the Fund perform?
The Money Market Portfolio's return for the
semi-annual period ending June 30, 1999 was
1.43% (Class O). This was above the 1.24%
return for the average tax-exempt money
market fund tracked by Lipper Analytical
Services, Inc.
How would you characterize the investment
climate over the past six months?
The U.S. economy continued to expand through
the first half of 1999, thanks both to
relentless consumer spending and the
stabilization of economies around the world
after economic crisis in Brazil, Asia, and
Japan.
The task of identifying a sufficient supply
of tax-free money market securities was made
difficult by the low issuance of such
securities and an investor preference to
keep cash in short-term funds. It wasn't
until the tax season that there was an ample
amount of securities to pick and choose
from. In June, the annual issuance of
municipal notes also brought much needed
supply to the market.
What was your strategy for this period?
Since supply was scarce early in the year,
finding fairly-priced securities proved
difficult and we were forced to bide our
time until money flowed out
of tax-exempt funds for April tax payments.
These redemptions forced other fund managers
into selling
securities to raise cash -- which made it
easier to find attractively priced
securities, and
we were presented with an opportunity to
extend the average maturity of the Fund.
Given the likelihood of the Federal Reserve
raising rates toward the end of June, tax
exempt rates were too low on a taxable
equivalent basis when the first one-year
municipal notes were issued earlier in the
month. Therefore,
we did not initially participate in buying
these. In fact, the Federal Reserve
did raise rates a quarter of a point on June
30, 1999. Once enough supply of one-year
notes arrived, the rates on these securities
rose to a more reasonable level and we began
to buy a few of these issues, extending the
Fund's average maturity to 72 days.
<PAGE>
What is your outlook?
Even though the Federal Reserve removed its
bias to raise rates further at the June
Federal Open Market Committee meeting, we
feel the economy will likely continue to
expand and possibly force the Fed to raise
rates again in the second half of 1999. We
are also keeping a close eye on global
economic events that could destabilize world
markets and cause investors to seek the
safety of U.S. money markets. Therefore, we
will keep
the portfolio very liquid in order to react
quickly to changing market conditions.
July 20, 1999
Please remember, this discussion reflects
the views and opinions of Calvert Asset
Management Company at June 30, 1999, the end
of the reporting period. Our strategy and
the Fund's portfolio composition may differ
due to ever-changing market and economic
conditions. While historical performance is
no guarantee of future results, it may give
you a better and more thorough understanding
of our investment
decisions and management philosophy.
COMPARATIVE MONTH-END YIELDS
IBC's Gene
ral
CTFR Purpose Tax-
Free
Money Market Money Market
Class O Averages
6.30.99 2.90%
2.67%
5.31.99 3.09%
2.79%
4.30.99 2.94%
2.56%
3.31.99 2.87%
2.42%
2.28.99 2.51%
2.17%
1.31.99 2.87%
2.54%
12.31.98 3.02%
2.73%
Total returns assume reinvestment of
dividends. Past performance is no guarantee
of future results. Performance information
represents Class O shares. The value of an
investment in Class I or T shares would be
different. Sources: IBC's Money Fund
Report, IBC Financial Data Inc. and Lipper
Analytical Services Inc.
Portfolio
Statistics
weighted
average maturity
6.30.99 72 days
12.31.98 61 days
credit quality
distribution
as of 6.30.99
PIE CHART HERE
First tier - 96%
Second tier - 4%
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.
class O
average annual
total return
as of 6.30.99
1 year 2.99%
5 year 3.40%
10 year 3.78%
inception 4.71%
(3.04.81)
<PAGE>
Tom Dailey is a member of the CAMCO
portfolio management team.
Calvert Tax-Free Reserves Limited-Term
Portfolio seeks to earn the highest level of
interest income exempt from federal income
taxes as is consistent
with prudent investment management,
preservation of capital and the quality and
maturity characteristics of the Portfolio.
Fund
Information
asset allocation
short-term
tax-exempt bonds
NASDAQ symbol
CTFLX
CUSIP number
131620-20-5
Calvert Tax-Free Reserves Limited-Term
Portfolio
How did the Fund perform?
The Portfolio performed as it was designed,
that is, to outperform during a rising
interest rate environment. The Fund's six-
month return was 1.35% compared to a 0.72%
return for the average short-term municipal
fund tracked by Lipper Analytical Services,
Inc. The Fund outperformed all other Lipper
tax-exempt fixed income total return
averages during the six-month period ending
June 30, 1999.
What was your strategy for this period?
Short-term municipal rates remained low well
into the first half of the year, due to a
limited supply of new issues and strong
demand for the securities
that did come to market. Since there was no
additional yield to be gained by extending
the Fund, we remained invested in very short
maturity issues.
When taxable rates started to rise, short
municipal rates did not immediately follow.
When it became apparent that the Fed
would raise the Fed funds rate we felt it
was only a matter of time for municipal
rates to follow. With the supply of new
issues in June, tax-exempt rates finally
started to rise to more attractive levels,
and we began to participate more
aggressively by buying securities with a
three-year final maturity.
Comparative Investment Performance
CTFR Lipper Short Lehman
Limited-TermMunicipal Debt
Municipal Bond
PortfolioFunds Average Index TR
6 month 1.35% 0.72%
- - 0.89%
1 year 3.42% 3.24%
2.76%
5 year* 4.01% 4.32%
7.00%
10 year* 4.64% 4.90%
7.43%
Investment performance does not reflect the
deduction of any front-end sales charge.
TR represents total return. Source: Lipper
Analytical Services, Inc.
* Average annual return
<PAGE>
What is your outlook?
We expect the U. S. economy to remain
strong, which could force the Fed to raise
rates again to preempt inflation. We need to
be wary of the possibility of more rate
increases, and weigh this against periods of
low supply and possible further financial
crises abroad.
July 20, 1999
Please remember, this discussion reflects
the views and opinions of Calvert Asset
Management Company at June 30, 1999, the end
of the reporting
period. Our strategy and the Fund's
portfolio composition may differ due to ever-
changing market and economic conditions.
While historical performance is no guarantee
of future results, it may give you a better
and more thorough understanding of our
investment
decisions and management philosophy.
Growth of a hypothetical $10,000 investment
Total returns assume reinvestment of
dividends and reflect the deduction of
Portfolio's maximum front-end sales charge
of 1.00%. No sales charge has been applied
to the indices used for comparison. Past
performance is no guarantee of future
returns. Source: Lipper Analytical Services,
Inc.
LINE GRAPH HERE
CTFR Limited-Term Portfolio $15,576
Lehman Municipal Bond Fund Index TR
$20,472
Lipper Short Municipal Debt Funds Average
$16,095
Portfolio
Statistics
monthly
dividend yield
6.30.99 3.66%
12.31.98 3.58%
30 day SEC yield
6.30.99 3.38%
12.31.98 3.07%
weighted
average maturity
6.30.99 276 days
12.31.98 283 days
effective duration
6.30.99 285 days
12.31.98 253 days
credit quality
distribution
as of 6.30.99
PIE CHART HERE
AAA 31%
AA 9%
A 6%
BBB 28%
cash equivalents 26%
average annual
total return
as of 6.30.99
1 year 2.37%
5 year 3.80%
10 year 4.53%
inception 5.94%
(3.04.81)
<PAGE>
Emmett Long is a member of the CAMCO
portfolio management team.
Calvert Tax-Free Reserves Long-Term
Portfolio seeks to earn the highest
level of interest income exempt from federal
income taxes as is consistent
with prudent investment management,
preservation of capital and the quality and
maturity characteristics of the Portfolio.
Fund
Information
asset allocation
long-term
tax-exempt bonds
NASDAQ symbol
CTTLX
CUSIP number
131620-30-4
Calvert Tax-Free Reserves
Long-Term Portfolio
How did the Fund perform?
For the six month period ending June 30,
1999 the Fund had a return of -1.96% vs. the
Lipper General Municipal Debt Funds Average
of -1.82%, due in large part to our slightly
longer than average duration in the first
quarter.
How would you characterize the investment
climate over the past six months?
As 1998 closed, we anticipated that the
economy would slow to the point where the
Fed would have to cut rates rather than
raise them. Surprisingly, the economy
continued on
its torrid pace of growth. When it became
clear that consumer appetite for goods and
services was continuing to surge, we
shortened our portfolio maturity to better
reflect
our interest rate outlook for the near term.
Late in the second quarter of 1999, the
Federal Reserve adopted a tightening bias,
although the market had already priced in a
50 basis point tightening
and the long bond was trading near six
percent for the first time in almost a year.
By the time the Federal Reserve met on June
30, and increased the Fed funds rate by one
quarter of one percent (25 basis points),
the market was prepared.
What was your strategy for this period?
Going into 1999, we maintained a strategy of
purchasing good quality issues with good
structure -- a strategy that has served us
in the past and should benefit us in the
future. We don't attempt to make bets on any
particular
sector of the market, but high grade general
obligations, housing, and
Puerto Rico Bonds performed the best during
this back up in the market.
We benefited by our exposure to
Comparative Investment Performance
CTFR Lipper General Lehman
Long-TermMunicipal Debt Municipal
Bond
PortfolioFunds Average Index TR
6 month -1.96% -1.82%
- -0.89%
1 year 1.18% 1.13%
2.76%
5 year* 6.16% 6.18%
7.00%
10 year* 6.51% 6.85%
7.43%
Investment performance does not reflect the
deduction of any front-end sales charge.
TR represents total return. Source: Lipper
Analytical Services, Inc.
*Average annual return
<PAGE>
almost all of the best performing sectors.
What is your outlook?
As stated earlier, the Federal Reserve
raised rates at the end of June as a
precaution against inflation. Having
anticipated that move we shortened our
portfolio. The question that we are now
evaluating is whether subsequent rate hikes
will follow. In any event, we shall remain
nimble, proactive, and alert
to the possibility of rapid shifts in
interest rates.
July 20, 1999
Please remember, this discussion reflects
the views and opinions of Calvert Asset
Management Company at June 30, 1999, the end
of the reporting period. Our strategy and
the Fund's portfolio composition may differ
due to ever-changing market and economic
conditions. While historical performance is
no guarantee of future results, it may give
you a better and more thorough understanding
of our investment decisions and management
philosophy.
Growth of a hypothetical $10,000 investment
Total returns assume reinvestment of
dividends and reflect the deduction of
Fund's maximum front-end sales charge of
3.75%. No sales charge has been applied to
the indices used for comparison. Past
performance is no guarantee of future
returns. Source: Lipper Analytical Services,
Inc.
LINE GRAPH HERE
CTFR Long-Term Portfolio $18,090
Lehman Municipal Bond Fund Index TR
$20,472
Lipper General Municipal Debt Funds Average
$18,905
Portfolio
Statistics
monthly
dividend yield
6.30.99 4.11%
12.31.98 4.58%
30 day SEC yield
6.30.99 4.23%
12.31.98 4.10%
weighted
average maturity
6.30.99 17 years
12.31.98 16 years
effective duration
6.30.99 8.37 years
12.31.98 8.75 years
credit quality
distribution
as of 6.30.99
PIE CHART HERE
AAA 38%
AA 17%
A 24%
cash & equivalents 21%
average annual
total return
as of 6.30.99
1 year -2.64%
5 year 5.35%
10 year 6.11%
inception 7.60%
(8.23.83)
<PAGE>
Money Market Portfolio
Statement of Net Assets
June 30, 1999
Principal
Municipal Obligations - 104.4%
Amount Value
Alabama - 3.5%
Athens IDA Revenue VRDN, 5.55%, 6/1/05,
LOC: Tokai Bank, Ltd.
$3,500,000 $3,500,000
Birmingham Airport Authority Revenue
Municipal
Trust Receipts,
3.63%, 7/1/26, BPA: Societe Generale,
MBIA Insured
8,000,000 8,000,000
Calhoun County Economic Development Council
Revenue VRDN,
4.00%, 3/1/18, LOC: FNB Boston
3,900,000 3,900,000
Columbia IDA Revenue VRDN, 4.45%, 6/1/22,
LOC: Alabama Power Company 12,000,000
12,000,000
Haleyville IDA Revenue VRDN, 3.90%, 11/1/04,
LOC: Columbus Bank & Trust 1,550,000
1,550,000
MFH Revenue VRDN,
3.80%, 4/1/14, LOC: Southtrust Bank, AL7
65,000 765,000
3.80%, 9/1/20, LOC: Southtrust Bank, AL3
,045,000 3,045,000
Mobile Spring Hill Medical Clinic Revenue
VRDN,
3.80%, 2/1/11,
LOC: Amsouth Bank 3,240,0003,240,000
Montgomery IDA Revenue VRDN,
3.95%, 9/1/04, LOC: Southtrust Bank
2,650,000 2,650,000
3.90%, 3/1/23, LOC: Southtrust Bank
3,190,000 3,190,000
Northpoint MFH Revenue VRDN,
3.90%, 9/3/15, LOC: Amsouth Bank
2,115,000 2,115,000
3.80%, 7/1/18, LOC: Amsouth Bank
5,595,000 5,595,000
State IDA Revenue VRDN, 3.90%, 11/1/14,
LOC: Southtrust Bank, AL 6,495,000
6,495,000
Wynlakes Government Utility Authority
Revenue VRDN,
3.95%, 5/1/06, LOC: Amsouth Bank
4,000,000 4,000,000
Arizona - 3.1%
Apache County IDA Revenue VRDN, 3.75%,
12/15/18,
LOC: Bank of New York 4,600,0004,600,000
Pinal County IDA Revenue VRDN, 5.70%,
12/1/05,
LOC: Industrial Bank of Japan
10,000,000 10,000,000
Prescott IDA Revenue VRDN, 3.50%, 12/1/14,
GA: Household Finance Corp. 8,100,000
8,100,000
Salt River Project Municipal Commercial
Paper, 3.35%, 7/14/99,
BPA: Multi-Bank 28,900,00028,900,
000
Arkansas - 0.9%
Arkadelphia IDA Revenue VRDN, 3.95%, 4/1/11,
LOC: Den Danske Bank 4,000,0004,000,000
Fayetteville Public Facilities Revenue VRDN,
4.00%, 9/1/27,
LOC: Dresdner Bank, AG. 7,100,000
7,100,000
North Little Rock Baptist Health Facilities
Revenue VRDN,
4.65%, 12/1/21, BPA: Credit Suisse,
MBIA Insured 4,000,0004,000,000
<PAGE>
Principal
Municipal Obligations - (Cont'd)
Amount Value
California - 18.3%
Community College Financing Authority VRDN,
3.35%, 9/30/99,
FSA Insured $20,725,000$20,72
5,000
Fresno MFH Revenue VRDN, 5.65%, 5/1/15,
LOC: Tokai Bank, Ltd. 8,512,0008,512,000
Inland Valley Development Agency Tax
Allocation VRDN,
3.75%, 3/1/27, C/LOC: Cal Sters, LOC:
Union Bank, California. 34,485,000
34,485,000
Los Angeles County MFH VRDN,
3.30%, 12/1/05, LOC:
Bank of America 4,595,0004,595,000
3.65%, 12/1/07, C/LOC:
FHLB-San Fransisco 1,000,0001,000,000
5.85%, 11/1/09, LOC:
Industrial Bank of Japan 12,000,000
12,000,000
Los Angeles County Schools Fixed Rate Trust
Receipts,
3.35%, 9/30/99, FSA Insured 56,095,000
56,095,000
Los Angeles County Tax and Revenue
Anticipation Notes,
4.50%, 6/30/00 47,400,00047,710,
944
Los Angeles Regional Airport Improvement
Revenue Bonds,
4.10%, 12/1/25, LOC:
Societe Generale 7,900,0007,900,000
Oceanside MFH Revenue VRDN, 3.80%, 8/1/17,
SURBD: Continental Casualty Co.
500,000 500,000
Orange County Apartment Development Revenue
VRDN,
6.00%, 11/1/08, LOC:
Tokai Bank, Ltd. 6,300,0006,300,000
Riverside MFH Revenue VRDN, 5.55%, 6/1/09,
LOC: Tokai Bank, Ltd. 990,000 990,000
Sacramento County Floating Rate Trust
Receipts, 3.55%, 9/30/99,
BPA: Bank of New York 7,700,0007,700,000
School Cash Reserve Program Authority
Revenue Notes,
4.50%, 7/2/99, AMBAC Insured 25,175,000
25,175,505
4.00%, 7/3/00, AMBAC Insured 18,035,000
18,146,096
Statewide Community Development Authority
Revenue VRDN,
3.35%, 9/30/99, FSA Insured 35,580,000
35,580,000
3.75%, 3/25/25, LOC:
Chase Manhattan 22,167,00022,167,
000
Colorado - 2.0%
Boulder County MFH Revenue VRDN, 3.90%,
12/25/31,
LOC: Chase Manhattan 8,464,0008,464,000
Central City MFH Revenue VRDN, 3.90%,
12/25/30,
LOC: Texas Commerce Bank 194,000
194,000
City and County of Denver MFH Revenue VRDN,
3.60%, 12/15/14,
CONF: Den Danske Bank, LOC:
Credit Lyonnais 8,500,0008,500,000
Fort Collins MFH Revenue VRDN,
3.90%, 11/25/30, LOC:
Texas Commerce Bank 7,900,0007,900,000
3.90%, 12/25/31, LOC: Chase Manhattan6,5
09,000 6,509,000
Lakewood IDA Revenue VRDN, 4.20%, 8/1/07,
LOC: West One Bank 2,070,0002,070,000
District of Columbia - 1.8%
Municipal Trust Receipts,
3.85%, 6/1/03, LOC:
Credit Suisse, FSA Insured 5,300,000
5,300,000
3.85%, 7/27/03, LOC:
Credit Suisse, AMBAC Insured 10,900,000
10,900,000
3.85%, 6/1/05, LOC:
Credit Suisse, MBIA Insured 7,710,000
7,710,000
Tax and Revenue Anticipation GO Notes,
3.75%, 9/30/99,
LOC: Canadian Imperial Bank 7,000,000
7,011,041
<PAGE>
Principal
Municipal Obligations - (Cont'd)
Amount Value
Florida - 7.0%
Capital Projects Financial Authority Revenue
VRDN,
3.65%, 8/1/17, BPA:Credit Suisse,
FSA Insured $31,650,000$31,65
0,000
3.75%, 6/1/28, BPA: Credit Suisse,
FSA Insured 10,000,00010,000,
000
Duval County MFH Revenue VRDN,
4.35%, 6/1/07, LOC:
Household Financial Corp. 3,750,000
3,750,000
Housing Finance Agency Revenue VRDN, 3.85%,
7/1/23,
CONF: Commerze Bank, AG, LOC:
Heller Financial 8,800,0008,800,000
Orange County Health Facilities Authority
Revenue VRDN,
4.25%, 3/27/06, LOC:
Credit Suisse, MBIA Insured 2,600,000
2,600,000
3.80%, 10/1/06, LOC:
Credit Suisse, MBIA Insured 6,880,000
6,880,000
3.80%, 10/1/08, LOC:
Credit Suisse, MBIA Insured 4,000,000
4,000,000
Palm Beach County IDA Revenue VRDN, 4.80%,
10/1/28,
IA: Escrowed Treasury Bills 8,865,000
8,865,000
Pinellas County Health Facilities Authority
Revenue VRDN,
3.75%, 11/1/15, LOC:
First Union Bank, NC 3,830,0003,830,000
Sunshine State GFC Commercial Paper,
3.35%, 7/9/99, BPA:
Bank of Nova Scotia, AMBAC Insured
10,580,000 10,580,000
3.35%, 7/13/99, BPA:
Canadian Imperial 16,565,00016,565,
000
Sunrise Utilities Systems Revenue VRDN,
3.82%, 10/1/15,
TOA: Citibank, AMBAC Insured 7,000,000
7,000,000
Volusia County MFH Revenue VRDN, 4.075%,
9/1/05,
LOC: Amsouth Bank 3,830,0003,830,000
Georgia - 1.0%
Athens MFH Revenue VRDN, 4.075%, 8/1/05,
CONF: FNB Chicago, LOC:
First Bank, NA 2,000,0002,000,000
Columbus Downtown Development Authority
Revenue
VRDN, 3.90%, 8/1/15, LOC:
Columbus Bank & Trust 7,725,0007,725,000
Franklin County Industrial Building
Authority Revenue VRDN,
4.00%, 1/1/07, LOC: Comerica Bank
2,280,000 2,280,000
Jackson County IDA Revenue VRDN, 3.95%,
12/1/24,LOC: Barclays Bank, Plc.
2,505,000 2,505,000
State Residential Financial Authority
Revenue
VRDN, 3.10%, 3/1/99,TOA: Citibank2,86
5,000 2,865,000
Hawaii - 0.6%
State Department Budget and Finance
VRDN,4.50%, 12/1/21,
LOC: Union Bank of California 9,800,000
9,800,000
Illinois - 7.5%
Arlington Heights MFH Revenue VRDN, 4.50%,
5/1/24,
LOC: Heller Financial 4,230,0004,230,000
Chicago Municipal Trust Receipts VRDN,
3.80%, 1/1/18,
LOC: Credit Suisse, AMBAC Insured
2,900,000 2,900,000
Decatur Water Treatment Revenue VRDN, 4.00%,
7/8/99,
LOC: Sumitomo Bank, Ltd. 8,000,000
8,000,000
Educational Facilities Authority Revenue
VRDN, 3.80%, 4/1/32,
LOC: Bank of America 10,200,00010,200,
000
Elgin IDA Revenue VRDN, 3.75%, 9/1/16,
LOC: LaSalle Bank 4,400,0004,400,000
<PAGE>
Principal
Municipal Obligations - (Cont'd)
Amount Value
Illinois - (Cont'd)
Fulton IDA Revenue VRDN, 3.80%, 4/1/12,
LOC: Firstar Bank, Milwaukee $7,500,000
$7,500,000
Galesburg Knox College Project Revenue VRDN,
3.85%, 3/1/31,
LOC: LaSalle Bank 4,000,0004,000,000
Health Facilities Authority Revenue VRDN,
3.90%, 5/1/11, BPA: Comerica Bank
11,000,000 11,000,000
3.90%, 8/15/25, BPA: Northern Trust
Company 8,000,0008,000,000
3.55%, 4/1/33, LOC: American National
Bank and Trust 5,200,0005,200,000
Housing Development Authority Revenue VRDN,
3.40%, 3/2/00, LOC: Bear Stearns
Capital Market 11,715,00011,715,
000
5.25%, 2/1/24, LOC: Sumitomo
Bank, Ltd. 2,700,0002,700,000
IDA Revenue VRDN,
4.13%, 9/2/05, LOC: American National
Bank and Trust 2,000,0002,000,000
3.85%, 9/1/26, LOC:
Firstar Bank, Milwaukee 2,172,500
2,172,500
Rockford Economic Development Revenue VRDN,
3.80%, 12/1/10,
LOC: Banque Paribas 2,270,0002,270,000
StateToll Highway Authority Revenue VRDN,
3.25%, 2/15/12,
LOC: Bear Stearns Capital Markets,
FSA Insured 38,700,00038,700,
000
Winnebago County IDA Revenue VRDN, 5.5025%,
12/1/06,
LOC: Bank of Nova Scotia 2,280,000
2,280,000
Indiana - 1.4%
Frankfort Economic IDA Revenue VRDN, 5.25%,
1/1/23,
LOC: Dai-Ichi Kangyo Bank 4,300,000
4,300,000
Health Facilities Financing Authority
Revenue VRDN,
3.55%, 1/1/12, LOC: Comerica Bank
4,700,000 4,700,000Indianapolis MFH
Revenue VRDN, 3.45%, 12/20/33,
LOC: National City Bank 4,500,000
4,500,000
Shelbyville IDA Revenue VRDN, 5.25%, 9/1/06,
LOC: Industrial Bank of Japan 6,300,000
6,300,000
South Bend MFH Revenue VRDN, 4.00%, 10/1/09,
LOC: FHLB-Indianapolis 4,420,0004,420,000
Iowa - 0.1%
Davenport IDA Revenue VRDN, 5.5025%,
12/1/06,
LOC: Bank of Nova Scotia 1,600,000
1,600,000
Kentucky - 1.4%
Carroll County Solid Waste IDA Revenue VRDN,
4.05%, 5/1/27,
LOC: Banco Bilbao Vizcaya 5,951,000
5,951,000
Glasgow IRB VRDN, 5.425%, 6/1/20,
LOC: Bank of Tokyo-Mitsubishi, Ltd.4,400
,000 4,400,000
Hancock County IDA Revenue VRDN, 3.85%,
6/1/12,
LOC: Chase Manhattan 4,340,0004,340,000
Hopkinsville IDA Revenue VRDN, 5.25%,
4/1/04,
LOC: Dai-Ichi Kangyo Bank 8,500,000
8,500,000
<PAGE>
Principal
Municipal Obligations - (Cont'd)
Amount Value
Louisiana - 2.3%
Caddo-Bossier Parishes Port Revenue VRDN,
3.90%, 1/1/28, LOC:
First Regions Bank $4,000,000$4,000,
000
New Orleans Levee District Revenue VRDN,
5.60%, 10/1/17, LOC: Fuji Bank, Ltd.
24,155,000 24,155,000
Public Facilities Authority Revenue VRDN,
3.75%, 12/1/00, BPA: Banque
National De Paris, MBIA Insured
7,700,000 7,700,000
3.80%, 12/1/14, LOC: Regions Bank
2,775,000 2,775,000
Massachusetts - 0.3%
Hudson IDA Revenue VRDN, 4.375%, 10/1/13,
LOC: FNB Boston 1,025,0001,025,000
State Industrial Finance Authority Revenue
VRDN,
4.125%, 11/3/99, LOC: FNB Boston
350,000 350,000
4.375%, 8/1/14, LOC: FNB Boston
4,500,000 4,500,000
Michigan - 2.1%
Monroe County Economic Development LO
Revenue VRDN,
3.90%, 10/1/24, LOC: Barclays Bank, Plc.
1,200,000 1,200,000
Sault Sainte Marie Tribe Building Revenue
VRDN,3.65%, 6/1/03,
LOC: First of America Bank, MI
4,520,000 4,520,000
State Hospital Authority Revenue VRDN,
3.30%, 12/1/03,
LOC: Bear Stearns Capital Market,
FSA Insured 11,970,00011,970,
000
State Strategic Fund Economic Development LO
Revenue VRDN,
5.25%, 9/1/08, LOC: Dai-Ichi
Kangyo Bank 6,800,0006,800,000
5.70%, 11/1/09, LOC:
Tokai Bank, Ltd. 8,200,0008,200,000
3.90%, 9/1/30, LOC:
Barclays Bank, Plc. 2,800,0002,800,000
Minnesota - 2.2%
Cloquet Industrial Facilities Revenue VRDN,
4.05%, 4/1/29,
LOC: Credit Suisse 6,900,0006,900,000
Cottage Grove Pollution Control Board
Revenue VRDN,
3.596%, 8/1/12, GA: 3M 1,100,0001,100,000
Duluth Economic Development Revenue VRDN,
4.00%, 6/1/19,
LOC: Credit Local D France 2,400,000
2,400,000
Minneapolis Community Development Agency
Revenue VRDN,
4.85%, 2/1/12, LOC: Sumitomo
Bank, Ltd. 11,555,00011,555,
000
Minneapolis GO VRDN,
3.50%, 12/1/05, BPA:
Bayerische Vereinsbank 10,500,000
10,500,000
3.50%, 12/1/06, BPA:
Bayerische Vereinsbank 5,300,000
5,300,000
Mississippi - 0.3%
Business Financial Corp. IDA Revenue VRDN,
4.05%, 6/1/06, LOC: Deposit Guaranty
3,675,000 3,675,000
4.15%, 6/1/07, LOC: Deposit Guaranty
1,900,000 1,900,000
<PAGE>
Principal
Municipal Obligations - (Cont'd)
Amount Value
Missouri - 1.4%
Kansas City MFH Revenue VRDN, 4.05%, 6/1/15,
LOC: Huntington National Bank $6,530,000
$6,530,000
St. Louis IDA Revenue VRDN, 5.55%, 1/1/21,
LOC: Banca Nazionale Del Lavoro
9,300,000 9,300,000
State IDA Revenue VRDN, 3.90%, 9/1/08,
LOC: Morgan Guaranty Trust 4,000,000
4,000,000
State MFH Revenue VRDN, 3.90%, 12/25/30,
LOC: Texas Commerce Bank 4,000,000
4,000,000
Nebraska - 0.2%
IDA Revenue VRDN, 5.25%, 12/1/04,
LOC: Sanwa Bank, Ltd. 4,000,0004,000,000
New Hampshire - 0.3%
State Business Finance Authority Revenue
VRDN, 3.80%, 12/1/17,
LOC: Firstar Bank Milwaukee 5,500,000
5,500,000
New York - 6.8%
Long Island Power Authority Electric Revenue
VRDN,
4.00%, 5/1/33, LOC:
ABN Amro Bank 22,900,00022,900,
000
Municipal Securities Trust Certificates
Revenue VRDN,
3.25%, 6/26/11, BPA: Bear Stearns
Capital Market, FGIC Insured
27,600,000 27,600,000
3.43%, 5/11/13, BPA: Bear Stearns
Capital Market, AMBAC Insured
27,600,000 27,600,000
3.48%, 9/1/27, LOC: Bear Stearns
Capital Market, FSA Insured
10,000,000 10,000,000
New York City Water Authority
Commercial Paper, 3.35%, 7/7/99
23,000,000 23,000,000
State Energy Development Authority Pollution
Control Revenue
VRDN, 4.00%, 6/1/29, LOC:
Morgan Guaranty Trust 4,335,000
4,335,000
Nevada - 0.2%
Henderson Public Improvement Trust Revenue
VRDN,
3.40%, 12/1/21, LOC: NationsBank
2,900,000 2,900,000
Ohio - 0.6%
Cleveland Public Power System Revenue VRDN,
3.82%, 11/15/18
BPA: Commerze Bank, AG,
MBIA Insured 4,995,0004,995,000
Piqua IDA Revenue VRDN, 4.60%, 10/1/01,
LOC: Sanwa Bank, Ltd. 5,800,000
5,800,000
Oklahoma - 1.0%
Cleveland MFH Revenue VRDN, 3.80%, 4/1/20,
SURBD: Continental Casualty Co.
5,930,000 5,930,000
Housing Finance Authority Revenue VRDN,
4.45%, 12/1/05,
C/LOC: Binghampton Savings Bank
5,900,000 5,900,000
Tulsa IDA Revenue VRDN, 3.60%, 11/1/14,
LOC: St. John's Medical Center
5,000,000 5,000,000
<PAGE>
Principal
Municipal Obligations - (Cont'd)
Amount Value
Pennsylvania - 4.6%
Chester County IDA Revenue VRDN, 3.80%,
4/1/17,
LOC: Corestates $3,110,000$3,110,
000
Delaware County Authority Revenue VRDN,
3.55%, 7/1/14,
LOC: PNC Bank 8,500,0008,500,000
Delaware County IDA Revenue VRDN, 3.25%,
8/1/16,
LOC: Toronto - Dominion 3,600,000
3,600,000
Montgomery County IDA Revenue VRDN, 3.75%,
12/1/13,
LOC: PNC Bank 150,000 150,000
Municipal Securities Trust Certificates
Revenue VRDN,
3.50%, 2/1/03, BPA: Bear Stearns
Capital Market, AMBAC Insured
10,725,000 10,725,000
Philadelphia MFH Redevelopment Authority
Revenue VRDN,
3.95%, 12/1/09, LOC:
Marine Midland Bank 2,950,0002,950,000
Philadelphia Tax and Revenue
Anticipation Notes, 4.80%, 6/30/00
46,700,000 47,038,108
West Cornwall Township Municipal Authority
Revenue VRDN,
3.75%, 3/1/16, LOC: Corestates
1,710,000 1,710,000
Puerto Rico - 0.2%
Electric Power Authority GO VRDN, 3.41%,
7/1/22,
BPA: Societe Generale 2,200,0002,200,000
Infrastructure Financing Authority Revenue
VRDN, 3.54%, 7/1/28, BPA:
Bank of America 500,000 500,000
South Carolina - 1.7%
Dorchester County IDA Revenue VRDN, 3.96%,
10/1/24,
LOC: Bayerische Vereinsbank 5,100,000
5,100,000Orangeburg IDA Revenue VRDN,
4.375%, 6/1/08,
LOC: FNB Boston 3,900,0003,900,000
State MFH Authority Revenue VRDN,
3.85%, 7/1/07,
SURBD: Continental Casualty Co.
6,000,000 6,000,000
State Public Service Authority Revenue
VRDN, 3.85%, 1/1/25,
BPA: Bayerische Hypobank,
FGIC Insured 13,800,00013,800,
000
Tennessee - 6.6%
Coffee County IDA Revenue VRDN,
5.45%, 12/1/01, LOC: Asahi Bank
9,000,000 9,000,000 4.40%, 5/1
/12, LOC: Barnett
Bank of South Florida 2,520,000
2,520,000
Memphis-Shelby County IDA Revenue VRDN,
3.70%, 3/1/24,
LOC: National Bank of Commerce, TN
6,000,000 6,000,000
Sevier County Public Building Authority
Revenue VRDN,
3.65%, 6/1/05, BPA: KredietBank,
AMBAC Insured 7,000,0007,000,000
3.65%, 6/1/14, BPA: Landesbank Hessen-
TH, AMBAC Insured 3,000,0003,000,000
3.65%, 6/1/17, BPA: Landesbank Hessen-
TH,
AMBAC Insured 5,000,0005,000,000
3.65%, 6/1/18, BPA: Landesbank Hessen-
TH,
AMBAC Insured 17,000,00017,000,
000
3.35%, 6/1/19, BPA: KredietBank,
AMBAC Insured 4,200,0004,200,000
3.65%, 6/1/19, BPA: Landesbank Hessen-
TH,
AMBAC Insured 25,000,00025,000,
000
3.65%, 6/1/20, BPA: Bayerishe
Landesbank
Girozentrale, AMBAC Insured
10,000,000 10,000,000
3.65%, 6/1/21, BPA: Landesbank Hessen-
TH,
AMBAC Insured 5,000,0005,000,000
Shelby County Health Educational and
Housing Facilities Board
Revenue VRDN, 3.95%, 7/1/22,
LOC: NationsBank 5,000,0005,000,00
Tennenergy Corp. Gas Revenue Bonds,
4.00%, 6/1/00, MBIA Insured
14,035,000 14,116,078
<PAGE>
Principal
Municipal Obligations - (Cont'd)
Amount Value
Texas - 11.0%
Austin Combined Utilities System Commercial
Paper,
3.35%, 7/15/99, LOC:
Morgan Guaranty Trust $16,093,000
$16,093,000
Austin Utilities Revenue VRDN, 3.30%,
12/1/04,
LOC: Bear Stearns Capital Market,
MBIA Insured 23,265,00023,265,
000
Bexar County MFH Revenue
VRDN, 4.00%, 5/1/30 3,710,0003,710,000
Cleburne IDA Revenue VRDN, 3.90%,
2/1/04,
LOC: National City Bank 1,550,000
1,550,000
Grand Prairie IDA Revenue VRDN, 3.45%,
12/1/06,
LOC: PNC Bank, N.A. 1,000,0001,000,000
Harris County IDA Revenue VRDN,
5.25%, 8/1/01, LOC: Bank of Tokyo-
Mitsubishi, Ltd. 700,000 700,000
5.25%, 8/1/01, LOC: Sakura Bank, Ltd.
1,200,000 1,200,000
5.35%, 8/1/01, LOC: Bank of Tokyo-
Mitsubishi, Ltd. 750,000 750,000
Harris County Health Facilities Development
Corp. VRDN,
4.10%, 2/15/27, BPA: Morgan
Guaranty Trust 56,770,00056,770,
000
Harris County MFH Revenue VRDN, 4.42%,
6/1/30,
LOC: Heller Financial 5,500,0005,500,000
Tax and Revenue Anticipation Notes,
4.50%, 8/31/99 74,300,00074,428,
352
Utah - 0.2%
University of Utah Revenue VRDN, 3.35%,
12/1/15,
LOC: First Security Bank 4,185,000
4,185,000
Virginia - 0.0%
Henrico County IDA Revenue VRDN, 3.90%,
10/1/00,
C/LOC: Bank of America,
LOC: Tokai Bank, Ltd. 800,000
800,000
Washington - 0.8%
Grant County Public Utilities VRDN, 3.80%,
10/1/11,
LOC: Southtrust Bank, AL 4,000,000
4,000,000
State Public Power Supply System Revenue
VRDN, 3.60%, 7/1/17,
LOC: Bank of America 10,000,00010,000,
000
West Virginia - 0.2%
Harris County IDA Revenue VRDN, 3.65%,
6/1/14,
LOC: Societe Generale 4,140,0004,140,000
Wisconsin - 1.0%
Eau Claire IDA Revenue VRDN, 3.80%, 5/1/07,
LOC: Firstar Bank, Milwaukee 3,185,000
3,185,000
Germantown IDA Revenue VRDN, 3.80%, 5/1/17,
LOC: Firstar Bank, Milwaukee 1,800,000
1,800,000
Grafton IDA Revenue VRDN, 3.90%, 12/1/17,
LOC: Firstar Bank, Milwaukee 2,900,000
2,900,000
State Health & Educational Facilities
Authority Revenue VRDN,
3.70%, 11/1/23, LOC:
Firstar Bank, Milwaukee 8,200,000
8,200,000
<PAGE>
Principal
Municipal Obligations - (Cont'd)
Amount Value
Other - 11.8%
ABN Amro Chicago Corp. LeaseTOPS Trust
Certificates,
4.09%, 10/4/00, BPA: Lasalle Bank
$14,708,708 $14,708,708
3.82%, 3/1/10, BPA: ABN Amro Bank,
MBIA Insured 17,585,000 17,585
,000
Capital Realty Investors Tax Exempt
Certificates Revenue VRDN,
3.90%, 2/1/04, BPA: UBS, AG 48,955,000
48,955,000
3.90%, 12/1/04, BPA: UBS, AG 23,865,000
23,865,000
Lehman Brothers Pooled Trust Receipts VRDN,
3.90%, 7/1/12,
BPA: Bank of America, LOC:
Industrial Bank of Japan 18,200,000
18,200,000
Macon Pooled Trust Receipts VRDN, 3.72%,
12/5/20,
BPA: Bank of America,
AMBAC Insured 10,000,000 10,000
,000
Morgan Keegan Trust Receipts VRDN,
3.92%, 12/9/99, LOC:
Credit Local D France 2,995,000 2,995,000
3.80%, 6/1/06, BPA: National Westminster
Bank,
FGIC Insured 32,929,000 32,929
,000
Municipal Securities Trust VRDN, 3.25%,
3/1/18,
LOC: Bear Sterns Capital Market,
FSA Insured 14,455,000 14,455
,000
Pitney Bowes Corporation LeaseTOPS Trust
Certificates VRDN,
4.04%, 10/10/01, BPA:
Pitney Bowes Credit, AMBAC Insured
16,687,660 16,687,660
TOTAL INVESTMENTS (Cost $1,771,978,992) -
104.4% 1,771,978,992
Other assets and liabilities, net - (4.4%)
(75,048,083)
Net Assets - 100.0%
$1,696,930,909
Net Assets Consist of:
Paid in capital applicable to the following
shares of beneficial interest,
unlimited number of no par value shares
authorized:
Class O: 1,324,377,929 shares
outstanding $1,324,265,581
Institutional Class: 341,602,737 shares
outstanding 341,599,914
Class T: 31,022,776 shares outstanding
31,022,776
Undistributed net investment income (loss)
7,487
Accumulated net realized gain (loss) on
investments 35,151
Net Assets $1,696,930
,909
Net Asset Value Per Share
Class O (based on net assets of
$1,324,298,057) $1.00
Institutional Class (based on net assets of
$341,608,913) $1.00
Class T (based on net assets of $31,023,939)
$1.00
See notes to financial statements.
<PAGE>
Limited-Term Portfolio
Statement Of Net Assets
June 30, 1999
Principal
Municipal Obligations - 110.1% Amount
Value
Arizona - 0.4%
Glendale County IDA Revenue Bonds, 4.10%,
12/1/13,
LOC: Dresdner Bank $2,300,000 $2,273
,205
California - 24.7%
Community College Development Authority Tax
and Revenue
Anticipation Notes, 4.00%, 9/29/00,
FSA Insured 8,695,000 8,725,085
Fontana COPs VRDN, 5.00%, 7/1/21, LOC:
Sumitomo Bank, Ltd. 7,000,000 7,000,000
Los Angeles County Schools COPs,
3.35%, 9/30/99, FSA Insured 15,340,000
15,338,159
4.00%, 9/29/00, LOC: National Westminster
Bank,
FSA Insured 5,000,000 5,022,100
Public Works Board Lease Revenue Bonds,
4.75%, 9/1/99 13,960,000 13,991
,968
Sacramento County Revenue VRDN, 3.55%,
9/30/99,
BPA: Bank of New York 9,900,000 9,900,000
San Bernardino County MFH Revenue VRDN,
6.00%, 5/1/06,
LOC: Sumitomo Bank, Ltd. 18,945,000
18,945,000
San Diego Local Government COPs,
4.00%, 7/28/00 15,000,000 15,088
,950
San Diego Tax Anticipation Notes,
4.25%, 9/29/00 25,000,000 25,158
,000
Statewide Community Development Authority
Revenue VRDN,
3.35%, 9/30/99, FSA Insured 14,500,000
14,500,000
Colorado - 2.1%
Central City MFH Revenue VRDN, 3.90%,
12/25/30,
LOC: Texas Commerce 200,000 200,000
Denver City & County Airport Revenue VRDN,
7.00%, 11/15/99 10,750,00010,874,
378
Connecticut - 0.4%
Recovery Authority Revenue Bonds,
5.60%, 11/15/99 1,945,0001,960,521
Florida - 1.7%
Capital Projects Financial Authority Revenue
VRDN, 3.65%, 8/1/17,
BPA: Credit Suisse, FSA Insured
800,000 800,000
Miami Dade County School Board COPs, 5.00%,
8/1/01,
FSA Insured 3,000,0003,053,340
Orange County Housing Financial Authority
Revenue VRDN,
3.75%, 8/1/08, LOC: NationsBank
150,000 150,000
Palm Beach Housing Finance Authority Revenue
VRDN,
5.037%, 3/1/22, INSUR:
Fireman's Insurance Co. 4,750,000
4,750,000
Volusia County MFH Revenue VRDN,
4.075%, 9/1/05, LOC: Amsouth Bank
170,000 170,000
Georgia - 0.2%
Tri-City Hospital Authority Revenue Bonds,
5.25%, 7/1/99 1,000,0001,000,030
Guam - 0.4%
Government GO Bonds, 5.75%, 8/15/99
1,885,000 1,890,146
<PAGE>
Principal
Municipal Obligations - (Cont'd)
Amount Value
Illinois - 1.3%
Berwyn GO Bonds, 7.00%, 11/15/10,
MBIA Insured $3,000,000$3,174,
330
Educational Facilities Authority Revenue
Bonds,
4.75%, 9/1/00 1,770,0001,786,992
Housing Development Authority Revenue VRDN,
5.25%, 2/1/24,
LOC: Sumitomo Bank, Ltd. 2,200,000
2,200,000
Indiana - 0.3%
Shelbyville Economic Development Revenue
VRDN, 5.25%, 9/1/06,
LOC: Industrial Bank of Japan 1,700,000
1,700,000
Louisiana - 0.3%
St. Tammany Parish Hospital Services Revenue
Bonds,
5.00%, 7/1/99 1,760,0001,760,070
Maine - 0.5%
Finance Authority MFH Revenue VRDN, 5.25%,
9/1/18,
LOC: Sakura Bank 2,935,0002,941,075
Maryland - 3.5%
Baltimore Revenue Bonds, The Zamoiski
Company Project,
6.061%, 12/1/09 7,110,1707,110,170
Health and Higher Educational Facilities
Authority Revenue Bonds,
5.50%, 7/1/99 2,855,0002,855,171
Montgomery County Economic Development
Bonds, 5.25%, 11/1/09,
LOC: FNB of Maryland 850,000 851,675
State and Local Facilities GO Bonds,
5.00%, 3/1/00 8,000,0008,091,760
Massachusetts - 1.1%
Municipal Wholesale Electric Power Company
Revenue Bonds,
6.25%, 7/1/99 6,025,0006,025,422
Michigan - 1.1%
Building Authority Revenue Bonds, 4.25%,
10/15/00 3,915,000
3,942,092
Housing Development Authority LO Revenue
VRDN,
5.00%, 10/1/11 995,000 993,119
Housing Development Authority Revenue Bonds,
6.00%, 10/1/11,
(Escrowed in U.S. Treasury Obligations)2
70,000 270,467
Strategic LO Revenue VRDN, 5.70%, 11/1/09,
LOC: Tokai Bank Ltd. 800,000 800,000
Minnesota - 2.5%
Edina MFH Revenue VRDN, 5.00%, 7/1/25
6,340,000 6,340,254
St. Paul Port Authority Revenue VRDN,
4.40%, 7/1/12 7,165,0007,164,785
Mississippi - 3.2%
Highway Revenue Bonds, 4.50%, 6/1/01
17,370,000 17,510,176
Nebraska - 0.5%
University of Nebraska Facilities Corp.
Revenue Bonds,
4.25%, 7/15/00 2,525,0002,544,518
Nevada - 3.6%
Housing Division Revenue VRDN, 5.50%,
10/1/20,
LOC: Sumitomo Bank, Ltd. 19,500,000
19,500,000
<PAGE>
Principal
Municipal Obligations - (Cont'd)
Amount Value
New Hampshire - 0.0%
Higher Education & Health Revenue Bonds,
7.50%, 12/1/00,
FGIC Insured $75,000 $75,212
New Jersey - 0.9%
State Turnpike Authority Revenue Bonds,
5.60%, 1/1/00 5,000,0005,051,600
New York - 24.8%
Dormitory Authority Revenue Bonds,
5.00%, 2/15/00 3,460,0003,493,700
5.00%, 2/15/01 3,865,0003,907,747
Long Island Power Authority Revenue Bonds,
4.25%, 4/1/01 25,670,00025,664,
353
Nassau County GO Bonds, 5.125%, 3/1/00,
AMBAC Insured 4,330,0004,381,224
New York City GO Bonds,
5.25%, 8/1/99 2,900,0002,904,505
4.25%, 8/1/00 9,005,0009,070,466
5.00%, 8/1/01 2,000,0002,031,160
New York City IDA Revenue VRDN, 4.00%,
1/1/24,
BPA: Bank of New York 18,085,00018,085,
000
New York City Municipal Water and Sewer
System Revenue
VRDN, 3.75%, 6/15/29, BPA:
Bank of New York 16,500,00016,500,
000
Port Authority New York and New Jersey,
Special Obligation
Revenue Bonds, 6.25%, 10/1/99 2,700,000
2,714,418
State COPs Revenue Bonds,
4.75%, 2/1/00 13,915,00014,018,
110
4.75%, 2/1/01 13,635,00013,735,
899
4.00%, 3/1/01 5,830,0005,804,640
4.25%, 9/1/01 8,465,0008,459,328
Thruway Authority Highway and Bridge Revenue
Bonds,
4.75%, 4/1/00, AMBAC Insured 3,675,000
3,714,396
Ohio - 2.2%
Lorraine County Hospital Revenue Bonds,
5.00%, 9/1/99 2,000,0002,005,360
Water Development Authority Revenue VRDN,
4.25%, 6/1/33 10,000,0009,926,800
Pennsylvania - 1.6%
Northeastern Hospital Authority Revenue
VRDN, 7.65%, 7/1/10,
(Prerefunded 7/1/99 @ 102) 3,590,000
3,662,195
Philadelphia Airport Revenue Bonds,
5.25%, 6/15/00, FGIC Insured 3,690,000
3,747,453
Philadelphia Hospitals & Higher Education
Revenue Bonds,
5.35%, 7/1/99 1,335,0001,335,067
Puerto Rico - 5.3%
Commonwealth GO Bonds, 5.50%, 7/1/99
10,200,000 10,200,510
Commonwealth Highway and Transportation
Authority Revenue
Bonds, 4.25%, 7/1/00 12,490,00012,583,
925
Commonwealth Highway and Transportation
Authority Revenue
Bonds, 3.85%, 7/1/10 6,000,0006,000,000
South Carolina - 0.6%
Education Assistance Revenue Bonds,
4.75%, 9/1/01 3,375,0003,409,155
<PAGE>
Principal
Municipal Obligations - (Cont'd)
Amount Value
Tennessee - 0.9%
Knox County Health Educational Hospital
Facility Revenue Bonds,
7.00%, 1/1/15, MBIA Insured $4,450,000
$4,618,077
Texas - 10.8%
Brazos River Authority Revenue Bonds,
4.15%, 6/1/30 35,000,00034,966,
750
Harris County IDA Revenue VRDN,
5.25%, 8/1/01, LOC:
Bank of Tokyo, Mitsubishi 3,250,000
3,250,000
5.25%, 8/1/01, LOC: Sakura Bank
300,000 300,000
Tax and Revenue Anticipation Notes,
4.50%, 8/31/99 20,000,00020,032,
200
Vermont - 5.8%
Student Assistance Corp. Promissory Notes,
3.75%, 12/15/99 6,705,0006,705,000
6.50%, 6/15/00, AMBAC Insured 2,000,000
2,051,800
4.10%, 12/15/00 10,855,00010,826,
126
4.55%, 12/15/00 11,830,00011,935,
642
Virginia - 3.0%
Fairfax County Public Improvement GO Bonds,
4.00%, 6/1/00 10,550,00010,608,
764
Public School Authority Revenue Bonds,
4.25%, 8/1/99 5,520,0005,524,030
Virgin Islands - 0.2%
Virgin Islands Public Finance Authority
Revenue Bonds,
5.00%, 10/1/00 1,000,0001,012,640
Washington - 0.9%
Public Power Supply Revenue Bonds,
4.50%, 7/1/99 1,935,000 1,935,058
7.30%, 7/1/00 3,000,000 3,106,170
Wisconsin - 2.6%
De Pere IDA Revenue VRDN, 4.20%, 6/1/2910,
000,000 9,986,100
GO Bonds, 5.10%, 5/1/01 4,000,000 4,061,840
Wyoming - 1.6%
Housing Development Revenue Bonds,
3.75%, 6/1/01 8,600,000 8,560,440
Other - 1.1%
Fort Mojave Indian Tribe of Arizona,
California and Nevada Public
Facilities Combined LO and Revenue Bonds
Adjustable Rate
and Tender Series A of 1993,
10.75%, 12/1/18 3,880,180 3,880,180
Lehman Brothers Pooled Trust Receipts,
3.90%, 7/1/12,
BPA: Bank of America,
LOC: Industrial Bank of Japan 2,300,000
2,300,000
TOTAL INVESTMENTS (Cost $596,429,902) -
110.1% 596,495,998
Payable for investments purchased - (9.9%)
(54,065,189)
Other assets and liabilities, net - (0.2%)
(842,134)
Net Assets - 100.0%
$541,588,675
<PAGE>
Net Assets Consist of:
Paid in capital applicable to 50,776,973
shares of beneficial interest,
unlimited number of no par value shares
authorized $541,378,658
Undistributed net investment income (loss)
107,866
Accumulated realized gain (loss) on
investments 36,055
Net unrealized appreciation (depreciation)
on investments 66,096
Net Assets $541,588,675
Net Asset Value Per Share
$10.67
See notes to financial statements.
<PAGE>
Long-Term Portfolio
Statement of Net assets
June 30, 1999
Principal
Municipal Obligations - 98.7% Amount
Value
Arizona - 7.5%
Maricopa County School District 69 GO Bonds,
6.25%, 7/1/14,
FSA Insured $2,000,000 $2,216
,880
Tucson GO Bonds, 5.50%, 7/1/18 2,000,000
2,057,220
California - 1.9%
Los Angeles Unified School District GO
Bonds, 6.00%, 7/1/15,
FGIC Insured 1,000,000 1,089,610
Colorado - 3.5%
Central City MFH Revenue VRDN, 3.90%,
12/25/30,
LOC: Texas Commerce 2,000,000 2,000,000
Florida - 7.8%
Dade County GO Bonds, 7.75%, 10/1/18,
AMBAC Insured 2,000,000 2,589,440
Dade County IDA Revenue Bonds,
8.00%, 6/1/22 1,700,000 1,846,353
Georgia - 7.0%
Atlanta Water and Wastewater Revenue Bonds,
5.50%, 11/1/22,
FGIC Insured 2,000,000 2,050,340
GO Bonds, 5.00%, 7/1/14 2,000,000 1,961,840
Illinois - 5.2%
Housing Development Authority VRDN, 5.35%,
2/1/24,
LOC: Sumitomo Bank Ltd. 2,990,000
2,990,000
Kentucky - 1.8%
IDA Revenue VRDN, 3.55%, 2/1/08, LOC:
National City Bank 1,000,000 1,000,000
Louisiana - 3.2%
Public Facility Authority MFH Revenue Bonds,
7.00%, 6/1/24 1,660,000 1,798,311
Maryland - 4.1%
Cambridge Economic Development Revenue
Bonds,
8.50%, 4/1/14 2,100,000 2,335,578
Massachusetts - 10.8%
Bay Transportation Authority Revenue Bonds,
5.50%, 3/1/15,
MBIA Insured 2,500,000 2,582,225
GO Bonds, 5.25%, 8/1/18 2,000,000 1,995,120
Water Resource Authority Revenue Bonds,
5.50%,
8/1/15, FSA Insured 1,500,000 1,550,220
Michigan - 1.8%
State Trunk Line Revenue Bonds,
5.50%, 11/1/18 1,000,000 1,023,930
<PAGE>
Principal
Municipal Obligations - (Cont'd)
Amount Value
New York - 4.8%
New York and New Jersey Port Authority,
Consolidated Revenue
Bonds, 6.125%, 6/1/2094 $2,500,000
$2,750,200
North Carolina - 3.2%
Community Health Care Facility-Duke
University Revenue Bonds,
4.75%, 6/1/21 1,000,000 893,400
Eastern Municipal Power Agency Revenue
Bonds,
4.50%, 1/1/24 1,040,000 935,938
Ohio - 3.2%
State Turnpike Commission Revenue Bonds,
5.50%, 2/15/26,
FGIC Insured 1,800,000 1,843,146
Puerto Rico - 8.5%
Commonwealth Highway and Transportation
Authority
Revenue Bonds, 6.00%,
7/1/18, MBIA Insured 2,000,000 2,181,520
Commonwealth Highway and Transportation
Authority
Revenue Bonds, 4.75%, 7/1/38 3,000,000
2,648,880
Rhode Island - 1.0%
Port Authority & Economic Development Corp.
Airport Revenue
Bonds, Series A, 7.00%, 7/1/14,
FSA Insured 500,000 579,300
Tennessee - 3.9%
Coffee County IDA Revenue VRDN, 4.40%,
5/1/12,
LOC: Barnett Bank of South Florida
2,200,000 2,200,000
Texas - 3.7%
Tarrant County Health Facilities Development
Corp. Revenue Bonds,
Taxes Health Resources, 5.75%, 2/15/15,
MBIA Insured 2,000,000 2,096,860
Vermont - 3.2%
Education & Health Buildings Financing
Agency Revenue Bonds,
5.00%, 11/1/38, 2,000,000 1,818,760
Virginia - 2.5%
Fairfax County Water Authority Revenue
Bonds,
5.00%, 4/1/21 1,500,000 1,438,440
Washington - 4.3%
Central Puget Sound Regional Transportation
Authority
Revenue Bonds, 5.25%, 2/1/21,
FGIC Insured 2,500,000 2,458,675
Other - 5.8%
Lehman Brothers Pooled Trust Receipts VRDN,
3.90%, 7/1/12,
BPA: Bank of America, LOC:
Industrial Bank of Japan 3,300,000
3,300,000
Total Municipal Obligations (Cost
$56,823,371) 56,232,186
<PAGE>
Options Purchased - 0.1% Contracts Value
Put Options on September U.S. Treasury Bond
Futures, Expiration
8/20/99, Strike price 114 100
$75,000
Total Options (Premium $72,875)
75,000
TOTAL INVESTMENTS
(Cost and Premium $56,896,246) - 98.8%
56,307,186
Other assets and liabilities, net - 1.2%
661,453
Net Assets - 100.0% $56,968,639
Net Assets Consist of:
Paid in capital applicable to the following
3,545,837 shares of
beneficial interest, unlimited number of
no par value
shares authorized $57,152,702
Undistributed net investment income (loss)
5,673
Accumulated net realized gain (loss) on
investments 399,324
Net unrealized appreciation (depreciation)
on investments (589,060)
Net Assets $56,968,639
Net Asset Value Per Share
$16.07
Explanation of Guarantees:
BPA: Bond-Purchase Agreement IA: Invest
ment Agreement
C/LOC: Collateralized LOC LOC: Letter
of Credit
CONF: Confirming Letter of Credit
SURBD: Surety Bond
GA: Guaranty Agreement TOA: Tender Option
Agreement
GIC: Guaranteed Investment Contract
Abbreviations:
AMBAC: American Municipal Bond Assurance
Corp
IRB: Industrial Building Authority
COPs: Certificates of Participation
LO: Limited Obligation
FGIC: Financial Guaranty Insurance Company
MBIA: Municipal Bond Insurance Association
GFC: Governmental Financing Commission
MFH: Multi-Family Housing
GO: General Obligation
VRDN: Variable Rate Demand Notes
IDA: Industrial Development Authority
Certain securities have optional or
mandatory tender features which give them a
shorter effective maturity date.
See notes to financial statements.
<PAGE>
Statements of Operations
six months ended june 30, 1999
Money MarketLimited-TermLong-
Term
Net Investment IncomePortfolioPortfolioPor
tfolio
Investment Income
Interest income$28,659,655$11,278,897$1,
461,676
Expenses
Investment advisory fee1,608,6931,606,303
173,413
Transfer agency fees
and expenses 992,843168,073 18,608
Distribution Plan expenses:
Class A ---- ---- 31,142
Class T 7,784 ---- ----
Trustees' fees and expenses69,629 23,341
2,521
Administrative fees:
Class O 1,772,845 19,976 1,319
Institutional Class69,770 ---- ----
Class T 8,095 ---- ----
Accounting fees 30,381 22,660 7,384
Custodian fees 77,132 26,537 1,125
Registration fees32,971 14,756 9,432
Reports to shareholders153,475 29,249
4,321
Professional fees31,640 10,849 1,141
Miscellaneous 86,404 19,612 2,771
Total expenses4,941,6621,941,356253
,177
Fees paid indirectly(118,481)(52,276)
(7,676)
Net expenses4,823,1811,889,080245,501
Net Investment Income23,836,4749,389,
817 1,216,175
Realized and Unrealized Gain
(Loss) on Investments
Net realized gain (loss) on securities35,151
36,055 401,200
Change in unrealized
appreciation or (depreciation)----(2,466,2
04) (2,810,650)
Net Realized and Unrealized
Gain (Loss) on Investments----(2,430,
149) (2,409,450)
Increase (Decrease) in Net Assets
Resulting from
Operations $23,871,625$6,959,668($1,193
,275)
See notes to financial statements.
<PAGE>
Money Market Portfolio
Statements of Changes in Net Assets
Six Months EndedY
ear Ended
June 30,December
31,
Increase (Decrease) in Net Assets
1999 1998
Operations
Net investment income $23,836,474$50,55
2,253
Net realized gain (loss) 35,151
203,276
Increase (Decrease) in Net Assets
Resulting from Operations 23,871,625
50,755,529
Distributions to shareholders from
Net investment income:
Class O shares (19,469,608)(44,4
84,980)
Institutional Class shares (4,532,699)
(6,074,676)
Class T shares (86,040) ----
Total distributions (24,088,347)(50,
559,656)
Capital share transactions:
Shares sold:
Class O shares 950,398,8461,893,
035,372
Institutional Class shares 1,762,008,
451 2,253,311,523
Class T shares 47,386,432 ----
Reinvestment of distributions:
Class O shares 18,979,61443,565,
798
Institutional Class shares 2,443,868
3,808,687
Class T Shares 83,052
Shares redeemed:
Class O shares (1,000,203,955)(1
,986,801,809)
Institutional Class shares (1,669,790
,498) (2,061,263,513)
Class T shares (16,446,708) ----
Total capital share transactions
94,859,102 145,656,058
Total Increase (Decrease) in Net Assets
94,642,380 145,851,931
Net Assets
Beginning of period 1,602,288,5291,45
6,436,598
End of period (including undistributed net
investment
income of $7,487 and $259,360, respectively)
$1,696,930,909$1,602,288,529
<PAGE>
Six Months EndedY
ear Ended
June 30,December
31,
Capital Share Activity 1999 1998
Shares sold:
Class O shares 950,398,8461,893,
035,372
Institutional Class shares 1,762,008,
451 2,253,311,523
Class T shares 47,386,432 ----
Reinvestment of distributions:
Class O shares 18,979,61443,565,
798
Institutional Class shares 2,443,868
3,808,687
Class T shares 83,052 ----
Shares redeemed:
Class O shares (1,000,203,955)(1
,986,801,809)
Institutional Class shares (1,669,790
,498) (2,061,263,513)
Class T shares (16,446,708) ----
Total capital share activity
94,859,102 145,656,058
See notes to financial statements.
<PAGE>
Limited-Term Portfolio
Statements of Changes in Net Assets
Six Months EndedY
ear Ended
June 30,December
31,
Increase (Decrease) in Net Assets
1999 1998
Operations
Net investment income $9,389,817$18,873
,747
Net realized gain (loss) 36,055
190,601
Change in unrealized
appreciation or (depreciation)
(2,466,204) 614,093
Increase (Decrease) in Net Assets
Resulting from Operations
6,959,668 19,678,441
Distributions to shareholders from:
Net investment income (9,369,153)(18,87
5,335)
Net realized gain on investments
(20,908) (73,203)
Total distributions (9,390,061)(18,94
8,538)
Capital share transactions:
Shares sold 140,924,663321,42
0,461
Reinvestment of distributions:
7,902,948 15,624,101
Shares redeemed (152,020,623)(280
,742,089)
Total capital share transactions
(3,193,012) 56,302,473
Total Increase (Decrease) in Net Assets
(5,623,405) 57,032,376
Net Assets
Beginning of period 547,212,080490,17
9,704
End of period (including undistributed net
investment
income of $107,866 and $87,202,
respectively)$541,588,675$547,212,080
Capital Share Activity
Shares sold 13,159,544
30,000,403
Reinvestment of distributions 739,379
1,460,415
Shares redeemed (14,195,113)(26,1
96,065)
Total capital share activity (296,190)
5,264,753
See notes to financial statements.
<PAGE>
Long-Term Portfolio
Statements of Changes in Net Assets
Six Months EndedY
ear Ended
June 30,December
31,
Increase (Decrease) in Net Assets
1999 1998
Operations
Net investment income $1,216,175$2,532,
798
Net realized gain (loss) 401,200
1,608,740
Change in unrealized
appreciation or (depreciation)
(2,810,650) (1,389,917)
Increase (Decrease) in Net Assets
Resulting from Operations
(1,193,275) 2,751,621
Distributions to shareholders from:
Net investment income (1,215,208)(2,569
,096)
Net realized gain on investments
(245,663) (1,694,387)
Total distributions (1,460,871)(4,263
,483)
Capital share transactions:
Shares sold 7,153,00315,227,311
Reinvestment of distributions 1,242,091
3,601,187
Shares redeemed (6,449,756)(10,60
4,794)
Total capital share transactions
1,945,338 8,223,704
Total Increase (Decrease) in Net Assets
(708,808) 6,711,842
Net Assets
Beginning of period 57,677,44750,965,
605
End of period (including undistributed net
investment
income of $5,673 and $4,706, respectively)
$56,968,639 $57,677,447
Capital Share Activity
Shares sold 428,704
884,903
Reinvestment of distributions 74,977
211,682
Shares redeemed (388,789)(615,866)
Total capital share activity 114,892
480,719
See notes to financial statements.
<PAGE>
Notes To Financial Statements
Note A -- Significant Accounting Policies
General: Calvert Tax-Free Reserves (the
"Fund") is registered under the Investment
Company Act of 1940 as as an open-end
management investment company. The Fund is
comprised of five separate portfolios, three
of which
are reported herein; Money Market, Limited-
Term and Long-Term. Money Market and Limited-
Term are registered as diversified
portfolios and Long-Term as a non-
diversified portfolio. The operations of
each portfolio are accounted for separately.
Each Portfolio offers shares of beneficial
interest. Money Market Class O and
Institutional Class shares are sold without
a sales charge. Institutional Class shares
require a minimum account balance of
$1,000,000 and have a lower expense ratio
than Class O Shares. Shares of Limited-Term
and Long-Term are sold with a maximum front-
end sales charge of 1.00% and 3.75%,
respectively.
Effective March 1, 1999, Money Market began
to offer Class T Shares. Class T shares are
sold to investors with brokerage accounts at
The Advisors
Group, Inc. Class T Shares are sold without
a sales charge. 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 (including options)
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. 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. Risks from writing or purchasing
option securities arise from possible
illiquidity of the options market and the
movement in the value of the investment or
in interest rates. The risk associated with
purchasing options is limited to the premium
originally paid.
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 into 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.
Investment income and realized gains and
losses are allocated to separate classes of
shares based upon the relative net assets of
each class. Expenses arising in connection
with a class are charged directly to that
class. Expenses common to the classes are
allocated to each class in proportion to
their relative net assets.
<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.
Estimates: The preparation of financial
statements in conformity with generally
accepted accounting principles requires
management to make estimates and assumptions
that affect the reported amounts of assets
and liabilities and disclosure of contingent
assets and liabilities at the date of the
financial statements and the reported
amounts of income and expenses during the
reporting period. Actual results could
differ from those estimates.
Expense Offset Arrangements: The Fund has an
arrangement with its custodian bank whereby
the custodian's and transfer agent's fees
may be paid indirectly by credits earned on
the Fund's cash on deposit with the bank.
Such a deposit arrangement is an alternative
to overnight investments.
Federal Income Taxes: No provision for
federal income or excise tax is required
since the Fund intends to continue to
qualify as a regulated investment company
under the Internal Revenue Code and to
distribute substantially all of its
earnings.
Note B -- Related Party Transactions
Calvert Asset Management Company, Inc. (the
"Advisor") is wholly-owned
by Calvert Group, Ltd. ("Calvert"), which is
indirectly wholly-owned by Ameritas Acacia
Mutual Holding Company. The Advisor provides
investment advisory services and pays the
salaries and fees of officers and affiliated
Trustees of the Fund. For its services, the
Advisor receives
monthly fees based on the following annual
rates of average daily net assets:
First Next Over
$500 Million$500 Million$1 Bi
llion
Money Market .25% .20% .15%
Limited-Term .60% .50% .40%
Long-Term .60% .50%
.40%
Under the terms of the agreement, $469,255,
$310,730, and $35,669 were payable at period
end for Money Market, Limited-Term and Long-
Term, respectively.
Calvert Administrative Services Company, an
affiliate of the Advisor, provides
administrative services to the Fund for an
annual fee. Class O, Class T and
Institutional Class of Money Market pay
annual rates of .26%, .26%
and .05%, respectively, based on their
average daily net assets. The remaining
portfolios of the Fund pay monthly an annual
fee, of $80,000, which is allocated between
the Portfolios based on their relative net
assets. Under the terms of the agreement,
$304,670 and $3,357 were payable at period
end for Money Market and Limited-Term,
respectively.
Calvert Distributors, Inc., an affiliate of
the Advisor, is the distributor and
principal underwriter for the Fund.
Distribution Plans, adopted by Class T of
Money Market and Long-Term, allow the
Portfolio to pay the distributor for
expenses and services associated
<PAGE>
with distribution of shares. The expenses
paid may not exceed an annual rate of
average daily net assets of .25% on Class T
of Money Market and .35% on Long-Term.
The Distributor paid $2,335 in addition to
the commissions charged on sales
of Limited-Term. The Distributor received
$9,592 as its portion of commissions charged
on sales of Long-Term. Under the terms of
the agreement, $6,268 and $4,279 were
payable at period end for Money Market and
Long-Term, respectively.
Calvert Shareholder Services, Inc. ("CSSI"),
an affiliate of the Advisor, is the
shareholder servicing agent for the Fund.
For its services, CSSI received fees of
$543,527, $21,403, and $2,250 for the six
months ended June 30, 1999 for Money Market,
Limited-Term and Long-Term, respectively.
Under the terms of the agreement, $82,341,
$3,123, and $365 were payable at period end
for Money Market, Limited-Term and Long-
Term, respectively. National Financial Data
Services, Inc., is the transfer and dividend
disbursing agent.
Each Trustee who is not affiliated with the
Advisor received an annual fee of $20,500
plus up to $1,500 for each Board and
Committee meeting attended. Trustee fees are
allocated to each of the funds served.
Note C -- Investment Activity
During the period, purchases and sales of
investments, other than short-term
securities, were:
Limited-TermLong-
term
Purchases $127,545,210
$19,802,668
Sales 78,575,050
20,730,017
Money Market held only short-term
investments.
The cost of investments owned at June 30,
1999 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) as of June 30, 1999:
Money MarketLimited-TermLong-
Term
Unrealized appreciation--$722,318 $986,290
Unrealized depreciation--656,222 1,575,350
Net -- $66,096
($589,060)
As a cash management practice, Portfolios
may sell or purchase short-term variable
rate demand notes from other Portfolios
managed by the Advisor. All transactions are
executed at independently derived prices.
Note D -- Line of Credit
A financing agreement is in place with all
Calvert Group Funds and State Street Bank
and Trust Company ("the Bank"). Under the
agreement, the Bank is providing an
unsecured line of credit facility, in the
aggregate amount of $50 million ($25 million
committed and $25 million uncommitted), to
be accessed by the Funds for temporary or
emergency purposes only.
Borrowings under this facility bear interest
at the overnight Federal Funds Rate plus
.50% per annum. A commitment fee of .10% per
annum will be incurred on the unused portion
of the committed facility which will be
allocated to all participating funds. The
Fund had no loans outstanding pursuant to
this line of credit at June 30, 1999.
<PAGE>
Money Market Portfolio
Financial Highlights
Periods Ended
June 30,December 31,Decem
ber 31,
Class 0 Shares 1999 1998 1997
Net asset value, beginning $1.00 $1.00
$1.00
Income from investment operations
Net investment income.014 .032 .033
Distributions from
Net investment income(.014)(.032) (.033)
Net asset value, ending$1.00$1.00 $1.00
Total return* 1.43% 3.22%
3.38%
Ratios to average net assets:
Net investment income2.82% (a) 3.17%
3.32%
Total expenses +.66% (a) .65% .65%
Net expenses .64% (a) .64% .64%
Net assets, ending (in thousands)$1,324,298
$1,355,322 $1,405,350
Number of shares outstanding,
ending (in thousands)1,324,338 1,355,203
1,405,404
Years Ended
December 31,December 31,Decem
ber 31,
Class O Shares 1996 1995 1994
Net asset value, beginning $1.00 $1.00
$1.00
Income from investment operations
Net investment income.033 .040 .028
Distributions from
Net investment income(.033)(.040) (.028)
Net asset value, ending$1.00$1.00 $1.00
Total return* 3.33% 4.02%
2.81%
Ratios to average net assets:
Net investment income3.28%3.93% 2.75%
Total expenses + .65% .62% --
Net expenses .64% .61% .62%
Net assets, ending (in thousands)$1,550,731
$1,740,839 $1,344,595
Number of shares outstanding,
ending (in thousands)1,550,724 1,740,948
1,344,668
<PAGE>
Money Market Portfolio
Financial Highlights
Periods Ended
June 30,December 31,Decem
ber 31,
Institutional Class/MMP++ 1999 1998
1997
Net asset value, beginning $1.00 $1.00
$1.00
Income from investment operations
Net investment income.016 .035 .031
Distributions from
Net investment income(.016)(.035) (.031)
Net asset value, ending$1.00$1.00 $1.00
Total return* 1.60% 3.58%
3.12%
Ratios to average net assets:
Net investment income3.23% (a) 3.54%
3.37%
Total expenses +.31% (a) .30% .63%
Net expenses .30% (a) .29% .62%
Expenses reimbursed---- -- (.04%)
Net assets, ending (in thousands) $341,608
$246,967 $51,087
Number of shares outstanding,
ending (in thousands)341,602246,94151,084
Periods Ended
December 31,Decem
ber 31,
Institutional Class/MMP++ 1996
1995^
Net asset value, beginning $1.00
$1.00
Income from investment operations
Net investment income .030 .008
Distributions from
Net investment income (.030) (.008)
Net asset value, ending $1.00 $1.00
Total return* 2.68%
.79%
Ratios to average net assets:
Net investment income 2.65% 3.19%(a)
Total expenses + 1.29% 1.35%(a)
Net expenses 1.28% 1.34%(a)
Net assets, ending (in thousands)
$33,160 $41,736
Number of shares outstanding,
ending (in thousands) 33,153 41,732
<PAGE>
Money Market Portfolio
Financial Highlights
Period Ended
June 30,
Class T Shares 1999^^
Net asset value, beginning
$1.00
Income from investment operations
Net investment income .010
Distributions from
Net investment income (.010)
Net asset value, ending $1.00
Total return*
.95%
Ratios to average net assets:
Net investment income 2.81% (a)
Total expenses + .76% (a)
Net expenses .75% (a)
Net assets, ending (in thousands)
$31,024
Number of shares outstanding,
ending (in thousands) 31,023
<PAGE>
Limited-Term Portfolio
Financial Highlights
Periods Ended
June 30,December 31,Decem
ber 31,
1999 1998 1997
Net asset value, beginning$10.71 $10.70
$10.69
Income from investment operations
Net investment income.18 .40 .42
Net realized and unrealized
gain (loss) (.04) .01 .01
Total from investment
operations .14 .41 .43
Distributions from
Net investment income(.18)(.40) (.42)
Net realized gains ---- ---- ----
Total distributions(.18)(.40) (.42)
Total increase (decrease) in net asset
value (.04) .01
.01
Net asset value, ending$10.67$10.71 $10.70
Total return* 1.35% 3.87%
4.07%
Ratios to average net assets:
Net investment income3.46% (a) 3.70%
3.91%
Total expenses +.71% (a) .71% .70%
Net expenses .70% (a) .70% .69%
Portfolio turnover 25% 45% 52%
Net assets, ending (in thousands) $541,589
$547,212 $490,180
Number of shares outstanding,
ending (in thousands)50,77751,073 45,808
Years Ended
December 31,December 31,Decem
ber 31,
1996 1995 1994
Net asset value, beginning$10.72 $10.59
$10.72
Income from investment operations
Net investment income.44 .45 .39
Net realized and unrealized
gain (loss) (.03) .13 (.13)
Total from investment
operations .41 .58 .26
Distributions from
Net investment income(.44)(.45) (.39)
Total increase (decrease) in net
asset value (.03) .13 (.13)
Net asset value, ending$10.69$10.72 $10.59
Total return* 3.94% 5.55%
2.42%
Ratios to average net assets:
Net investment income4.12%4.21% 3.60%
Total expenses + .71% .71% --
Net expenses .70% .70% .66%
Portfolio turnover 45% 33% 27%
Net assets, ending (in thousands) $512,342
$457,707 $544,822
Number of shares outstanding,
ending (in thousands)47,92242,690 51,424
<PAGE>
Long-Term Portfolio
Financial Highlights
Periods Ended
June 30,December 31,Decem
ber 31,
1999 1998 1997
Net asset value, beginning$16.81 $17.28
$16.81
Income from investment operations
Net investment income.35 .78 .87
Net realized and unrealized
gain (loss) (.67) .06 .50
Total from investment
operations (.32) .84 1.37
Distributions from
Net investment income(.35)(.80) (.87)
Net realized gains(.07) (.51) (.03)
Total distributions(.42)(1.31) (.90)
Total increase (decrease) in net asset
value (.74) (.47)
.47
Net asset value, ending$16.07$16.81 $17.28
Total return * (1.96%) 5.01% 8.41%
Ratios to average net assets:
Net investment income4.21%(a)4.58% 5.16%
Total expenses +.88%(a) .87% .87%
Net expenses .85%(a) .84% .85%
Portfolio turnover 41% 72% 41%
Net assets, ending (in thousands) $56,969
$57,677 $50,966
Number of shares outstanding,
ending (in thousands)3,5463,431 2,950
Years Ended
December 31,December 31,Decem
ber 31,
1996 1995 1994
Net asset value, beginning$17.31 $15.83
$17.15
Income from investment operations
Net investment income.93 .95 .93
Net realized and unrealized
gain (loss) (.46) 1.53 (1.33)
Total from investments .47 2.48
(.40)
Distributions from
Net investment income(.95)(.91) (.92)
Net realized gains(.02) (.09) --
Total distributions(.97)(1.00) (.92)
Total increase (decrease) in net
asset value (.50) 1.48 (1.32)
Net asset value, ending$16.81$17.31 $15.83
Total return * 2.89% 16.05% (2.30%)
Ratios to average net assets:
Net investment income5.50%5.71% 5.73%
Total expenses + .89% .87% --
Net expenses .86% .85% .81%
Portfolio turnover 41% 58% 98%
Net assets, ending (in thousands) $52,945
$57,359 $47,267
Number of shares outstanding,
ending (in thousands)3,1493,314 2,985
(a) Annualized
* Total return is not annualized for periods
less than one year and does not reflect
deduction of Class A front-end sales charge.
+ Effective December 31, 1995, this ratio
reflects total expenses before reduction for
fees paid indirectly; such reductions are
included in the ratio of net expenses. Total
expenses are presented net of expense
waivers and reimbursements.
^ From October 2, 1995 inception.
^^ From March 1, 1999 inception.
++ On August 1, 1997, Class MMP changed
its name and was converted to the
Institutional Class, with a lower expected
expense ratio. See notes to financial
statements.
<PAGE>
A special meeting of shareholders was
scheduled for February 24, 1999. There were
several proposals voted upon at the meeting.
A brief description of each proposal and the
number of votes received for, against, and
votes to abstain is shown below. All
proposals were passed.
Proposal 1 - To elect the Board of Trustees.
Money Market Limited-Term
Nominees ForAgainst For
Against
Richard L. Baird, Jr.687,316,584 170,308,
761 28,946,843 3,413,009
Frank H. Blatz, Jr.716,887,895140,737,4502
8,974,514 3,385,338
Frederick T. Borts712,906,245144,719,10028
,947,869 3,411,983
Charles E. Diehl715,297,621142,327,72428,9
81,574 3,378,278
Douglas E. Feldman713,527,879 144,097,466
29,012,979 3,346,873
Peter W. Gavian717,742,438139,882,90729,03
3,197 3,326,655
John G. Guffey, Jr.700,495,332157,130,0132
9,354,278 3,005,574
Barbara J. Krumsiek718,008,732 139,616,613
29,786,367 2,573,485
M. Charito Kruvant717,588,557 140,036,788
29,776,783 2,583,069
Arthur J. Pugh717,702,207139,923,13829,777
,881 2,581,971
David R. Rochat717,944,633139,680,71229,78
3,140 2,576,712
D. Wayne Silby716,652,898140,972,44729,769
,763 2,590,089
Long-Term
Nominees For Against
Richard L. Baird, Jr.2,125,17481,718
Frank H. Blatz, Jr.2,124,88382,009
Frederick T. Borts2,118,81688,076
Charles E. Diehl2,113,558 93,334
Douglas E. Feldman2,120,98785,905
Peter W. Gavian 2,123,387 83,505
John G. Guffey, Jr.2,079,577127,315
Barbara J. Krumsiek2,122,59284,300
M. Charito Kruvant2,120,81186,081
Arthur J. Pugh 2,116,841 90,051
David R. Rochat 2,126,664 80,228
D. Wayne Silby 2,126,664 80,228
<PAGE>
Proposal 2 - To approve amended fundamental
investment restrictions to: (a) delete
restrictions that are no longer required to
be fundamental due to changes in state laws
or which otherwise need not be fundamental;
and (b) to revise the language of those
restrictions that are still required to be
fundamental.
For AgainstAbstainBroker Non-
Vote
Money Market739,346,63231,001,76185,197,939
2,079,013
Limited-Term24,575,1842,733,0031,654,8733,
396,792
Long-Term 1,843,012 79,411 112,012
172,457
Proposal 3 - To approve a new investment
advisory agreement with the investment
advisor, Calvert Asset Management Company,
Inc. ("CAMCO").
For Against Abstain
Money Market745,251,98617,801,279
85,572,079
Limited-Term28,226,8982,580,010 1,552,943
Long-Term 2,057,121 85,458
64,311
Proposal 4 - To change the fundamental
policy concerning credit quality to a non-
fundamental policy, allowing Limited-Term
and Long-Term to invest in non-investment
grade securities.
For AgainstAbstainBroker Non-
Vote
Limited-Term21,787,2245,387,1211,788,7153,
396,792
Long-Term 1,756,922200,928 76,585
172,457
Proposal 5 - To change Long-Term from a
diversified to a non-diversified fund.
For AgainstAbstainBroker Non-
Vote
Long-Term 1,710,289212,899 88,604
195,100
Proposal 6 - To ratify the Board's selection
of auditors, PricewaterhouseCoopers LLP.
ForAgainst Abstain
Money Market 770,916,9917,669,17179,039,181
Limited-Term 30,366,944105,177 1,887,730
Long-Term 2,121,920 44,457
40,513
<PAGE>
Calvert Group and the Year 2000
Plans and Progress
We are now less than a year away from the
year 2000, a problematic date for computer
systems coded for two-character year format.
Entered as "00," the year 2000 would be
processed as 1900, a mistake that could foul
a variety of date-sensitive transactions.
As your mutual fund sponsor, our goal is
make sure there is no interruption in the
level of service you receive. In the summary
below, we've outlined the steps Calvert
Group is taking to ensure our systems
perform reliably.
Step One--Assess Systems and Software.
Develop an Action Plan.
In 1997, we identified all systems,
operating platforms and software potentially
affected by the millennium bug. These
included:
Calvert Group systems--portfolio trading,
sales contact and reporting
and internal management reporting
transfer agency systems--shareholder
record-keeping and transaction
processing
subadvisor systems--investment accounting
other third-party data and service
systems
We also formed a Y2K task force, led by
Calvert's vice president of technology. This
group has identified and prioritized our
efforts to achieve year 2000 compliance.
Step Two--Test for Compliance. Repair
Systems as Necessary.
Internal systems have been tested. We've
made repairs and moved modified code into
production. These systems are now fully
compliant. Transfer
agency systems were re-engineered for
compliance in 1989. Recent tests indicate
these are, in fact, compliant. The readiness
of third-party systems, including subadvisor
systems, has been evaluated. Based on
information received from these groups, we
have found no significant obstacles to
compliance.
Step Three--Confirm Compliance. Finalize
Contingency Plan.
Testing of transfer agency systems will
continue through 1999 to ensure these remain
compliant and continue to interact correctly
with external systems and processes. The
transfer agency has established a back-up
site, should main systems fail, and
compliance testing of these contingency
measures are also underway. We are
developing contingency plans to ensure that
any
unforeseen systems failures will not
adversely affect our operations or
inconvenience our shareholders.
For more information or to get an update on
remediation and testing efforts, please
visit us online at www.calvertgroup.com.
<PAGE>
Calvert
Tax-Free
Reserves
This report is intended to provide fund
information to
shareholders. It is not authorized for
distribution to
prospective investors unless preceded or
accompanied by a prospectus.
printed on
recycled paper
using soy-
based inks
To Open an Account
800-368-2748
Yields and Prices
Calvert Information Network
(24 hours, 7 days a week)
800-368-2745
Service for Existing Account
Shareholders: 800-368-2745
Brokers: 800-368-2746
TDD for Hearing Impaired
800-541-1524
Branch Office
4550 Montgomery Avenue
Suite 1000 North
Bethesda, Maryland 20814
Registered, Certified
or Overnight Mail
Calvert Group
c/o NFDS,
330 West 9th Street
Kansas City, MO 64105
Web Site
http://www.calvertgroup.com
Principal Underwriter
Calvert Distributors, Inc.
4550 Montgomery Avenue
Suite 1000 North
Bethesda, Maryland 20814
Calvert Group's
Family of Funds
Tax-Exempt Money Market Funds
CTFR Money Market Portfolio
CTFR California Money Market Portfolio
Taxable Money Market Funds
First Government Money Market Fund
CSIF Money Market Portfolio
Balanced Fund
CSIF Balanced Portfolio
Municipal Funds
CTFR Limited-Term Portfolio
CTFR Long-Term Portfolio
CTFR Vermont Municipal Portfolio
National Muni. Intermediate Portfolio
California Muni. Intermediate Portfolio
Maryland Muni. Intermediate Portfolio
Virginia Muni. Intermediate Portfolio
Taxable Bond Funds
CSIF Bond Portfolio
Income Fund
Equity Funds
CSIF Managed Index Portfolio
CSIF Equity Portfolio
Capital Accumulation Fund
CWV International Equity Fund
New Vision Small Cap Fund
New Africa Fund
<PAGE>
4550 Montgomery Avenue
Suite 1000 North
Bethesda, Maryland 20814
<PAGE>
June 30, 1999
SEMI-ANNUAL
REPORT
CALVERT TAX-FREE RESERVES CALIFORNIA MONEY
MARKET
PORTFOLIO
<PAGE>
Table of Contents
President's Letter
1
Portfolio
Manager Remarks
2
Statement of
Net Assets
4
Statement of Operations
7
Statements of Changes in
Net Assets
8
Notes to
Financial Statements
9
Financial Highlights
11
Shareholder Meeting Update
12
Year 2000 Update
13
<PAGE>
Dear Shareholders:
Here is your semi-annual report for the six-
month period ending June 30, 1999. For the
most current information regarding the per
formance of your fund, please visit our
recently redesigned Website at
www.calvertgroup.com.
In reviewing our recently redesigned Web
site, you will see that we now offer more
interactive information tools to help you
make the most informed investment decisions.
At www.calvertgroup.com you will find fund
performance, profiles and literature, as
well as a rich array of information on
socially responsible and tax free investing.
Our site also includes company profiles,
issues briefs and our award winning "Know
What You Own(r)" service.
Of special note, we have taken online
disclosure a step further this month by
publishing the entire portfolio holdings for
each of our equity funds. Calvert Group is
the first mutual fund family to provide a
complete listing of holdings on a monthly
basis.
Of course, knowing how a fund has performed
is as important as knowing the companies
that are in a Portfolio. I'm pleased to
report that a significant number of our
funds have received a three-star or better
Morningstar rating for their performance
over the past three years. For performance
over the same time frame, two funds --
Calvert Income Fund and Calvert Tax-Free
Reserves Limited Term Portfolio -- received
Morningstar's superlative five-star rating.1
More detail about your fund's performance is
included in this report.
As always, we encourage investors to make
decisions based on your financial objectives
and tolerance for risk. You should routinely
review your asset allocation to be sure you
are positioned at a comfortable risk level.
Your financial professional can suggest
strategies that keep you on track to meet
long-term financial objectives without
exposing you to undue levels of risk.
We appreciate your investment in Calvert
Group funds and look forward to providing
competitive returns in the future.
Sincerely,
Barbara J. Krumsiek
President and CEO
July 20, 1999
1 A Morningstar five-star ranking indicates
that the fund is in the top 10% of all
investment companies in a category, a four
star ranking indicates that the fund is in
the next 22.5%, and a three-star ranking is
in the middle 35%.
<PAGE>
Tom Dailey is a member of the CAMCO
portfolio management team.
Calvert Tax-Free Reserves California Money
Market Portfolio seeks to earn the highest
level of interest income exempt from federal
and California state income taxes as is
consistent with prudent investment
management, preservation of capital and the
quality and maturity characteristics of the
Portfolio.
Fund
Information
asset allocation
California tax-exempt
money market
NASDAQ symbol
CTCXX
CUSIP number
131620-50-2
Calvert Tax-Free Reserves California Money
Market Portfolio
How did the Fund perform?
The California Money Market Portfolio's
return for the semi-annual period ending
June 30, 1999 was 1.36%. This was above the
1.17% return for the Lipper California Tax
Exempt Money Market Funds Average.
How would you characterize the investment
climate over the past six months?
The U.S. economy continued to expand through
the first half of 1999, thanks both to
relentless consumer spending and the
stabilization of economies around the world
after economic crisis in Brazil, Asia, and
Japan.
The task of identifying a sufficient supply
of tax-free money market securities was made
difficult by the low issuance of such
securities and an investor preference to
keep cash in short-term funds. It wasn't
until the tax season that was there an ample
amount of securities to pick and choose
from. In June, the annual issuance of
municipal notes also brought much needed
supply to the market.
What was your strategy for this period?
Since supply was scarce early in the year,
finding fairly-priced securities proved
difficult and we were forced to bide our
time until money flowed out of tax exempt
funds for April tax payments. These
redemptions forced other fund managers into
selling securities to raise cash -- which
made it easier to find attractively priced
securities, and we were presented with an
opportunity to extend the average maturity
of the Fund.
Given the likelihood of the Federal Reserve
raising rates toward the end of June, tax
exempt rates were too low on a taxable
equivalent basis when the first one-year
municipal notes were issued earlier in the
month. Therefore, we did not initially
participate in buying these. In fact, the
Federal Reserve did raise rates a quarter of
a point on June 30, 1999. Once enough supply
of one-year notes arrived, the rates on
these securities rose to a more reasonable
level and we began to buy a few of these
issues, extending the Fund's average
maturity to 62 days.
<PAGE>
What is your outlook?
Even though the Federal Reserve removed its
bias to raise rates further at the June
Federal Open Market Committee meeting, we
feel the economy will likely continue to
expand and possibly force the Fed to raise
rates again in the second half of 1999. We
are also keeping a close eye on global
economic events that could destabilize world
markets and cause investors to seek the
safety of U.S. money markets. Therefore, we
will keep the portfolio very liquid in order
to react quickly to changing market
conditions.
July 20, 1999
Please remember, this discussion reflects
the views and opinions of Calvert Asset
Management Company at June 30, 1999, the end
of the reporting period. Our strategy and
the Fund's portfolio composition may differ
due to ever-changing market and economic
conditions. While historical performance is
no guarantee of future results, it may give
you a better and more thorough understanding
of our investment decisions and management
philosophy.
COMPARATIVE MONTH-END YIELDS
IBC's State
CTFR Specific SB&GP
California Tax-Free Money
Money MarketMarket Averages
6.30.99 2.83% 2.57%
5.31.99 3.10% 2.71%
4.30.99 2.83% 2.46%
3.31.99 2.63% 2.30%
2.28.99 2.30% 2.03%
1.31.99 2.67% 2.42%
12.31.98 2.86% 2.61%
Total returns assume reinvestment of
dividends. Past performance is no guarantee
of future results. Sources: IBC's Money Fund
Report, IBC Financial Data Inc. and Lipper
Analytical Services Inc.
Portfolio
statistics
weighted
average maturity
6.30.99 62 days
12.31.98 60 days
credit quality
distribution
as of 6.30.99
PIE CHART HERE
First Tier 99%
Second Tier 1%
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.
average annual
total return
as of 6.30.99
1 year 2.90%
5 year 3.26%
inception 3.58%
(10.16.89)
<PAGE>
Statement of Net Assets
June 30, 1999
Principal
Municipal Obligations - 105.8% Amount
Value
California - 100.4%
ABN Amro California Munitops Certificates
Trust VRDN,
3.60%, 8/1/24, BPA: ABN Amro
Bank, INSUR: FGIC $3,000,000 $3,000
,000
Alameda County Tax & Revenue
Anticipation Notes, 4.50%, 7/7/99
15,000,000 15,002,141
Buena Park Community Development Authority
VRDN,
4.8825%, 12/28/99, GA: Mass
Mutual Life Insurance 6,800,000 6,800,000
Community College Financing Authority VRDN:
3.35%, 9/30/99 5,224,5005,224,500
3.35%, 9/30/99, INSUR: FSA 580,500
580,500
Contra Costa County MFH Revenue VRDN, 3.45%,
10/20/28,
LOC: State Street Bank & Trust
7,385,000 7,385,000
Fresno MFH VRDN, 5.65%, 5/1/15,
LOC: Tokai Bank, Ltd. 1,188,000 1,188,000
Housing Finance Agency Revenue VRDN:
3.45%, 8/1/10, TOA: Citibank,
INSUR: MBIA 2,410,000 2,410,000
3.57%, 8/1/14, BPA: Banco Santander,
INSUR: MBIA 6,940,000 6,940,000
Inland Valley Development Agency Tax
Allocation VRDN,
3.20%, 3/1/27, CONF: Cal Sters,
LOC: Union Bank of California 10,000,000
10,000,000
Los Angeles Community Redevelopment MFH
Revenue VRDN,
3.60%, 12/1/05, LOC: Industrial Bank of
Japan,
SA: Bank of America 18,000,000 18,000
,000
Los Angeles Convention & Exhibition Center
Authority Lease Revenue
VRDN, 3.57%, 8/15/18, BPA: Merrill Lynch,
INSUR: MBIA 13,500,000 13,500
,000
Los Angeles County MFH Revenue VRDN:
3.35%, 12/1/07, CONF: Federal
Home Loan Bank 3,000,000 3,000,000
5.50%, 11/1/09, LOC: Industrial
Bank of Japan 5,000,000 5,000,000
Los Angeles County Schools Fixed Rate Trust
Receipts:
3.35%, 9/30/99, 18,979,17118,979,
171
3.35%, 9/30/99, INSUR: FSA 2,115,829
2,115,829
Los Angeles County Tax & Revenue
Anticipation Notes,
4.00%, 6/30/99 20,000,000 20,131
,200
Los Angeles Transportation Community Sales
Tax Revenue VRDN,
3.45%, 8/20/03, LOC: Credit Suisse,
INSUR: MBIA 7,890,000 7,890,000
Marin County Housing Authority MFH Revenue
VRDN,
5.65%, 10/15/29, LOC: Dai-Ichi
Kangyo Bank 18,450,000 18,450
,000
Metropolitan Water District Bonds, 3.05%,
7/9/99,
BPA: Westdeutsche Landes 21,700,000
21,700,000
Midway School District COPs VRDN, 4.00%,
2/1/23,
LOC: Union Bank of California 4,965,000
4,965,000
Modesto Irrigation District Financing
Authority Revenue VRDN,
3.57%, 10/1/15, BPA:
Societe Generale, INSUR: MBIA 14,000,000
14,000,000
Oakland Tax and Revenue Anticipation
Notes, 4.25%, 9/30/99 9,000,000 9,026,330
Oceanside MFH Revenue VRDN, 3.75%, 8/1/17,
SURBD: Continental Casualty Co.
6,040,000 6,040,000
Ontario Revenue VRDN, 3.25%, 10/1/26, CONF:
Cal Sters,
LOC: Union Bank of California 7,770,000
7,770,000
Orange County Apartment Development Revenue
VRDN:
3.65%, 11/1/08, LOC: Banque Paribas
9,400,000 9,400,000
6.00%, 11/1/08, LOC: Tokai Bank Ltd.
3,400,000 3,400,000
<PAGE>
Principal
Municipal Obligations - (Cont'd)
Amount Value
Orange County MFH Authority VRDN, 3.65%,
5/1/22,
LOC: Banque Paribas $3,600,000 $3,600
,000
Palmdale School District Project Lease VRDN,
3.90%, 12/13/10,
LOC: National Westminster Bank
10,429,999 10,429,999
Paramount MFH Authority VRDN, 4.17%,
10/1/18,
LOC: Heller Financial 4,250,000 4,250,000
Pitney Bowes Credit Corporation LeaseTOPS
Trust Certificates
VRDN, 4.04%, 10/1/18, BPA: Pitney Bowes
Credit,
INSUR: AMBAC 17,439,909 17,439
,909
Riverside County Tax & Revenue
Anticipation Notes, 4.50%, 9/30/99
6,000,000 6,022,056
Riverside MFH Revenue VRDN, 5.55%, 6/1/09,
LOC: Tokai Bank, Ltd. 975,000 975,000
Sacramento County VRDN, 3.30%, 9/30/99,
BPA: Bank of New York 18,100,000 18,100
,000
San Bernardino COPs VRDN, 4.55%, 3/1/24,
LOC: Bank Tokyo Mitsubishi 4,050,000
4,050,000
San Bernardino MFH Revenue VRDN, 3.65%,
6/1/05,
LOC: Household Federal Savings
2,000,000 2,000,000
San Diego Area Local Government COPs Tax &
Revenue
Anticipation Notes, 4.50%, 9/30/99
4,600,000 4,615,870
San Francisco Redevelopment MFH VRDN:
3.25%, 10/1/00, LOC: Credit Suisse
8,630,000 8,630,000
3.05%, 12/1/05, LOC: Bank One, AZ
9,300,000 9,300,000
San Marcos IDA VRDN, 3.82%, 12/1/20,
LOC: Union Bank California 1,465,000
1,465,000
Schools Cash Reserve Program Authority
Revenue Notes:
4.50%, 7/2/99, 13,551,00013,551,
272
4.50%, 7/2/99, INSUR: AMBAC 1,449,029
1,309,053
4.00%, 7/3/99, 14,466,17214,555,
283
4.00%, 7/3/99, INSUR: AMBAC 1,578,828
1,588,554
State Revenue Anticipation Notes VRDN,
3.20%, 12/1/32, 12,600,000 12,600
,000
State Transportation Finance Authority VRDN,
3.75%, 10/1/27,
BPA: Continental Casualty Co.,
INSUR: FSA 9,000,000 9,000,000
Statewide Community Development Authority
MFH VRDN:
3.35%, 9/30/99, BPA: Bank of
New York: 7,497,0007,497,000
3.35%, 9/30/99, BPA: Bank of New
York: INSUR: FSA 833,000 833,000
3.75%, 3/25/25, LOC: Chase Manhattan
2,530,000 2,530,000
3.20%, 6/1/26, LOC: Dresdner Bank
3,300,000 3,300,000
3.80%, 7/1/27, LOC: Banque Paribas
4,170,000 4,170,000
Stockton Heritage Convalescent Center
Project VRDN,
5.425%, 12/1/05, LOC: Tokai Bank, Ltd. 1
,055,000 1,055,000
Union City MFH Authority Revenue VRDN,
5.25%, 10/1/07,
CONF: Den Danske Bank,
LOC: Credit Lyonnais 9,500,000 9,500,000
Vallejo IDA Revenue VRDN, 3.55%, 12/1/23,
LOC: Wells Fargo Bank 5,300,000 5,300,000
Victorville MFH Revenue VRDN, 3.90%,
12/1/15,
C/LOC: Redlands S&L 6,585,000 6,585,000
<PAGE>
Principal
Municipal Obligations - (Cont'd)
Amount Value
Puerto Rico - 5.4%
Electric Power Authority GO VRDN, 3.34%,
7/1/22,
BPA: Societe Generale, INSUR: MBIA
$8,200,000 $8,200,000
Infrastructure GO VRDN, 3.54%, 7/1/28,
BPA: Merrill Lynch, INSUR: AMBAC
7,665,000 7,665,000
Tax & Revenue Anticipation Notes,
3.50%, 7/30/99 7,000,000 7,002,718
TOTAL INVESTMENTS
(Cost $449,157,361) - 105.8%
449,157,361
Payable for investments
purchased - (8.5%)
(36,275,037)
Other assets and liabilities, net -
2.7% 11,603,530
Net Assets - 100% $424,485,854
Net Assets Consist Of:
Paid in capital applicable to 424,614,833
shares of beneficial interest,
unlimited number of no par value shares
authorized $424,614,874
Undistributed net investment income (loss)
3,779
Accumulated realized gain/(loss) on
investments (132,799)
Net Assets $424,485,854
Net Asset Value Per Share
$1.00
Explanation of Guarantees:Abbreviations:
BPA: Bond-Purchase AgreementAMBAC: American
Municipal Bond Assurance Corp.
CONF: Confirming Letter of Credit COPs: Ce
rtificates of Participation
GA: Guaranty AgreementFGIC: Financial
Guaranty Insurance Company
IA: Investment AgreementFSA: Financial
Security Advisor
INSUR: InsuranceGO: General Obligation
LOC: Letter of CreditIDA: Industrial
Development Authority
C/LOC: Collateralized LOCMBIA: Municipal
Bond Insurance Association
SA: Swap AgreementMFH: Multi-Family Housing
SURBD: Surety BondVRDN: Variable Rate Demand
Note
TOA: Tender Option Agreement
See notes to financial statements.
<PAGE>
Statement of Operations
six months ended June 30, 1999
Net Investment Income
Investment Income
Interest income $7,316,311
Expenses
Investment advisory fee 1,089,231
Transfer agency fees and expenses
230,247
Accounting fees 20,720
Trustees' fees and expenses 19,537
Administrative fees 16,018
Custodian fees 20,272
Registration fees (23,796)
Reports to shareholders 45,250
Professional fees 8,777
Miscellaneous 17,478
Total expenses 1,443,734
Fees paid indirectly (34,896)
Net expenses 1,408,838
Net Investment Income5,907,473
Realized Gain (Loss) on Investments
Net realized gain (loss) (17,324)
Increase (Decrease) in Net Assets
Resulting from Operations
$5,890,149
See notes to financial statements.
<PAGE>
Statements of Changes in Net Assets
Six Months EndedYear E
nded
June 30,December
31,
Increase (Decrease) in Net Assets
1999 1998
Operations
Net investment income $5,907,473$11,690
,354
Net realized gain (loss) on securities
(17,324) 16,197
Increase (Decrease) in Net Assets
Resulting from Operations
5,890,149 11,706,551
Distributions to shareholders from
Net investment income (5,921,290)(11,67
9,754)
Capital share transactions:
Shares sold 212,259,233466,04
1,563
Reinvestment of distributions 5,802,103
11,503,395
Shares redeemed (231,119,587)(360
,997,804)
Total capital share transactions
(13,058,251) 116,547,154
Total Increase (Decrease) in Net Assets
13,089,392 116,573,951
Net Assets
Beginning of period 437,575,246321,00
1,295
End of period (including undistributed net
investment income
of $3,779 and $17,596, respectively)
$424,485,854 $437,575,246
Share Activity
Shares sold 212,259,233
466,041,563
Reinvestment of distributions 5,802,103
11,503,395
Shares redeemed (231,119,587)(360
,997,804)
Net share activity (13,058,251)116,5
47,154
See notes to financial statements.
<PAGE>
Notes To Financial Statements
Note A -- Significant Accounting Policies
General: The California Money Market
Portfolio (the "Portfolio"), a series of
Calvert Tax-Free Reserves (the "Fund"), is
registered under the Investment Company Act
of 1940 as a diversified, open-end
management investment company. The
operations of each series are accounted for
separately. The 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
Portfolio 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
Portfolio's capital accounts to reflect
income and gains available from distribution
under income tax regulations.
Estimates: The preparation of financial
statements in conformity with generally
accepted accounting principles requires
management to make estimates and assumptions
that affect the reported amounts of assets
and liabilities and disclosure of contingent
assets and liabilities at the date of the
financial statements and the reported
amounts of income and expenses during the
reporting period. Actual results could
differ from those estimates.
Expense Offset Arrangements: The Portfolio
has an arrangement with its custodian bank
whereby the custodian's and transfer agent's
fees may be paid indirectly by credits
earned on the Portfolios' cash on deposit
with the bank. Such a deposit arrangement is
an alternative to overnight investments.
Federal Income Taxes: No provision for
federal income or excise tax is required
since the 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 Ameritas Acacia Mutual Holding
Company. The Advisor provides investment
advisory services and pays the salaries and
fees of officers and affiliated Trustees of
the Fund. For its services, the Advisor
receives a monthly fee based on the
following annual rates of average daily net
assets: .50% on the first $500 million, .45%
on the next $500 million and .40% on the
excess of $1 billion. Under the terms of the
agreement, $220,759 was payable at period
end.
<PAGE>
Calvert Administrative Services Company, an
affiliate of the Advisor, provides
administrative services to the Fund for an
annual fee. The Fund (exclusive of the Money
Market portfolio) pays monthly an annual fee
of $80,000, which is allocated between the
Portfolios based on their relative net
assets. Under the terms of the agreement,
$2,632 was payable at period end.
Calvert Distributors, Inc., an affiliate of
the Advisor, is the distributor and
principal underwriter for the Portfolio.
Calvert Shareholder Services, Inc. (CSSI),
an affiliate of the Advisor, is the
shareholder servicing agent for the Fund.
For its services, CSSI received a fee of
$118,717 for the six months ended June 30,
1999. Under the terms of the agreement,
$19,346 was payable at period end. National
Financial Data Services, Inc. is the
transfer and dividend disbursing agent.
Each Trustee who is not affiliated with the
Advisor received an annual fee of $20,500
plus up to $1,500 for each Board and
Committee meeting attended. Trustee's fees
are allocated to each of the funds served.
Note C -- Investment Activity
The cost of investments owned at June 30,
1999 was substantially the same for federal
income tax and financial reporting purposes.
The table below presents the net capital
loss carryforwards as of December 31, 1998
with expiration dates:
Capital Loss Carryforwards Expiration
Dates
$115,124 12/31/03
351 12/31/04
Capital loss carryforwards may be utilized
to offset current and future capital gains
until expiration.
As a cash management practice, the Portfolio
may sell or purchase short-term variable
rate demand notes from other Portfolios
managed by the Advisor. All transactions are
executed at independently derived prices.
Note D -- Line of Credit
A financing agreement is in place with all
Calvert Group Funds and State Street Bank
and Trust Company ("the Bank"). Under the
agreement, the Bank is providing an
unsecured line of credit facility, in the
aggregate amount of $50 million ($25 million
committed and $25 million uncommitted), to
be accessed by the Funds for temporary or
emergency purposes only. Borrowings under
this facility bear interest at the overnight
Federal Funds Rate plus .50% per annum. A
commitment fee of .10% per annum will be
incurred on the unused portion of the
committed facility which will be allocated
to all participating funds. The Fund had no
loans outstanding pursuant to this line of
credit at June 30, 1999.
<PAGE>
Financial Highlights
Periods Ended
June 30,Dec. 31, Dec. 31,
1999 1998 1997
Net asset value, beginning $1.00 $1.00
$1.00
Income from investment operations
Net investment income.014 .031 .032
Distributions from
Net investment income(.014)(.031) (.032)
Net asset value, ending$1.00$1.00 $1.00
Total return 1.36% 3.19%
3.28%
Ratios to average net assets:
Net investment income2.71% (a) 3.13%
3.22%
Total expenses +.66% (a) .67% .66%
Net expenses .65% (a) .65% .65%
Expenses reimbursed---- .02% .05%
Net assets, ending (in thousands) $424,486
$437,575 $321,001
Number of shares outstanding,
ending (in thousands)424,615437,673321,126
Years Ended
Dec. 31,Dec. 31, Dec. 31,
1996 1995 1994
Net asset value, beginning $1.00 $1.00
$1.00
Income from investment operations
Net investment income.031 .037 .026
Distributions from
Net investment income(.031)(.037) (.026)
Net asset value, ending$1.00$1.00 $1.00
Total return 3.17% 3.78%*
2.62% *
Ratios to average net assets:
Net investment income3.14%3.69% 2.55%
Total expenses + .69% .76% --
Net expenses .68% .75% .69%
Expenses reimbursed.03% ---- ----
Net assets, ending (in thousands) $346,008
$300,351 $260,719
Number of shares outstanding,
ending (in thousands)346,124300,544260,716
(a) Annualized
* Total return numbers do not reflect the
Tender Option Agreement. On December 15,
1994, the Portfolio entered into a Tendered
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.
+ Effective December 31, 1995, this ratio
reflects total expenses before reduction of
fees paid indirectly; such reductions are
included in the ratio of net expenses. Total
expenses are presented net of expense
waivers and reimbursements.
<PAGE>
A special meeting of shareholders was
scheduled for February 24, 1999. There were
several proposals voted upon at the meeting.
A brief description of each proposal and the
number of votes received for, against, and
votes to abstain is shown below. All
proposals were passed.
Proposal 1 - To elect the Board of Trustees.
Nominees ForAgainst
Richard L. Baird, Jr.212,645,26216,981,995
Frank H. Blatz, Jr.212,334,41517,292,842
Frederick T. Borts212,093,66317,533,594
Charles E. Diehl212,436,68217,190,575
Douglas E. Feldman212,237,00917,390,248
Peter W. Gavian212,593,87417,033,383
John G. Guffey, Jr.207,891,19221,736,065
Barbara J. Krumsiek212,755,89716,871,360
M. Charito Kruvant212,515,67517,111,582
Arthur J. Pugh212,467,15017,160,107
David R. Rochat212,575,45417,051,803
D. Wayne Silby212,392,35917,234,898
Proposal 2 - To approve amended fundamental
investment restrictions to: (a) delete
restrictions that are no longer required to
be fundamental due to changes in state laws
or which otherwise need not be fundamental;
and (b) to revise the language of those
restrictions that are still required to be
fundamental.
For Against Abstain Broker Non-Vote
213,157,700 4,700,27411,136,741632
,542
Proposal 3 - To approve a new investment
advisory agreement with the investment
advisor, Calvert Asset Management Company,
Inc. ("CAMCO").
For Against Abstain
216,164,487 2,800,26610,662,503
Proposal 4 - To ratify the Board's selection
of auditors, PricewaterhouseCoopers LLP.
For Against Abstain
217,104,905 1,509,54311,012,808
<PAGE>
Calvert Group and the Year 2000
Plans and Progress
We are now less than a year away from the
year 2000, a problematic date for computer
systems coded for two-character year format.
Entered as "00," the year 2000 would be
processed as 1900, a mistake that could foul
a variety of date-sensitive transactions.
As your mutual fund sponsor, our goal is
make sure there is no interruption in the
level of service you receive. In the summary
below, we've outlined the steps Calvert
Group is taking to ensure our systems
perform reliably.
Step One--Assess Systems and Software.
Develop an Action Plan.
In 1997, we identified all systems,
operating platforms and software potentially
affected by the millennium bug. These
included:
Calvert Group systems--portfolio trading,
sales contact and reporting and internal
management reporting
Transfer agency systems--shareholder
record-keeping and transaction processing
Subadvisor systems--investment accounting
Other third-party data and service systems
We also formed a Y2K task force, led by
Calvert's vice president of technology. This
group has identified and prioritized our
efforts to achieve year 2000 compliance.
Step Two--Test for Compliance. Repair
Systems as Necessary.
Internal systems have been tested. We've
made repairs and moved modified code into
production. These systems are now fully
compliant. Transfer agency systems were re-
engineered for compliance in 1989. Recent
tests indicate these are, in fact,
compliant. The readiness of third-party
systems, including subadvisor systems, has
been evaluated. Based on information
received from these groups, we have found no
significant obstacles to compliance.
Step Three--Confirm Compliance. Finalize
Contingency Plan.
Testing of transfer agency systems will
continue through 1999 to ensure these remain
compliant and continue to interact correctly
with external systems and processes. The
transfer agency has established a back-up
site, should main systems fail, and
compliance testing of these contingency
measures are also underway. We are
developing contingency plans to ensure that
any unforeseen systems failures will not
adversely affect our operations or
inconvenience our shareholders.
For more information or to get an update on
remediation and testing efforts, please
visit us online at www.calvertgroup.com.
<PAGE>
Calvert
Tax-Free
Reserves
California
Money
Market
Portfolio
This report is intended to provide fund
information to
shareholders. It is not authorized for
distribution to
prospective investors unless preceded or
accompanied by a prospectus.
printed on
recycled paper
using soy-
based inks
To Open an Account
800-368-2748
Yields and Prices
Calvert Information Network
(24 hours, 7 days a week)
800-368-2745
Service for Existing Account
Shareholders: 800-368-2745
Brokers: 800-368-2746
TDD for Hearing Impaired
800-541-1524
Branch Office
4550 Montgomery Avenue
Suite 1000 North
Bethesda, Maryland 20814
Registered, Certified
or Overnight Mail
Calvert Group
c/o NFDS,
330 West 9th Street
Kansas City, MO 64105
Web Site
http://www.calvertgroup.com
Principal Underwriter
Calvert Distributors, Inc.
4550 Montgomery Avenue
Suite 1000 North
Bethesda, Maryland 20814
Calvert Group's
Family of Funds
Tax-Exempt Money Market Funds
CTFR Money Market Portfolio
CTFR California Money Market Portfolio
Taxable Money Market Funds
First Government Money Market Fund
CSIF Money Market Portfolio
Balanced Fund
CSIF Balanced Portfolio
Municipal Funds
CTFR Limited-Term Portfolio
CTFR Long-Term Portfolio
CTFR Vermont Municipal Portfolio
National Muni. Intermediate Portfolio
California Muni. Intermediate Portfolio
Maryland Muni. Intermediate Portfolio
Virginia Muni. Intermediate Portfolio
Taxable Bond Funds
CSIF Bond Portfolio
Income Fund
Equity Funds
CSIF Managed Index Portfolio
CSIF Equity Portfolio
Capital Accumulation Fund
CWV International Equity Fund
New Vision Small Cap Fund
New Africa Fund
<PAGE>
June 30, 1999
semi-annual
report
Calvert Tax-Free Reserves Vermont Municipal
Portfolio
<PAGE>
Table of Contents
President's Letter
1
Portfolio
Manager Remarks
2
Statement of
Net Assets
4
Statement of Operations
6
Statements of Changes in Net Assets
7
Notes to
Financial Statements
8
Financial Highlights
11
Shareholder Meeting Update
12
Year 2000 Update
13
<PAGE>
Dear Shareholders:
Here is your semi-annual report for the
six-month period ending
June 30, 1999. For the most current
information regarding the performance
of your fund, please visit our recently
redesigned
Web site at www.calvertgroup.com.
In reviewing our recently redesigned Web
site, you will see that we now
offer more interactive information tools to
help you make the most informed investment
decisions. At www.calvertgroup.com you will
find fund performance, profiles and
literature, as well as a rich array of
information on socially responsible and tax
free investing. Our site also includes
company profiles, issues briefs and our
award winning "Know What You Own(R)"
service.
Of special note, we have taken online
disclosure a step further this month by
publishing the entire portfolio holdings for
each of our equity funds. Calvert Group is
the first mutual fund family to provide a
complete listing of holdings on a monthly
basis.
Of course, knowing how a fund has performed
is as important as knowing the companies
that are in a Portfolio. I'm pleased to
report that a significant number of our
funds have received a three-star or better
Morningstar rating
for their performance over the past three
years. For performance over the
same time frame, two funds -- Calvert Income
Fund and Calvert Tax-Free Reserves Limited
Term Portfolio -- received Morningstar's
superlative five-star rating.1 More detail
about your fund's performance is included in
this report.
As always, we encourage investors to make
decisions based on your financial objectives
and tolerance for risk. You should routinely
review your asset allocation to be sure you
are positioned at a comfortable risk level.
Your financial professional can suggest
strategies that keep you on track to meet
long-term financial objectives without
exposing you to undue levels of risk.
We appreciate your investment in Calvert
Group funds and look forward to providing
competitive returns in the future.
Sincerely,
Barbara J. Krumsiek
President and CEO
July 20, 1999
1 A Morningstar five-star ranking indicates
that the fund is in the top 10% of all
investment companies in a category, a four
star ranking indicates that
the fund is in the next 22.5%, and a three-
star ranking is in the middle 35%.
<PAGE>
Emmett Long is a member of the CAMCO
portfolio management team.
Calvert Tax-Free Reserves Vermont Municipal
Portfolio seeks to earn the highest level of
interest income exempt from Vermont and
federal income taxes as is consistent with
prudent investment management, preservation
of capital, and the quality characteristics
of the Portfolio.
Fund
Information
asset allocation
Vermont long-term
tax-exempt bonds
NASDAQ symbol
CGVTX
CUSIP number
131620-70-0
Calvert tax-free reserves Vermont Municipal
Portfolio
How did the Fund perform?
For the six-month period ending 6/30 the
Fund had a return of -2.00% vs. the Lipper
Other States Municipal Debt Funds Average of
- -1.18%. This was due to a lessening of
demand for Vermont bonds that had previously
commanded
a premium price. While our duration was in
line with our benchmark, we shortened the
Portfolio slightly going into the second
quarter.
How would you characterize the investment
climate over the past six months?
As 1998 closed, we anticipated that the
economy would slow to the point where the
Fed would have to cut rates rather than
raise them. Surprisingly, the economy
continued on its torrid pace of growth. When
it became clear that consumer appetite for
goods and services was continuing to surge,
we shortened our portfolio to better reflect
our interest rate outlook for the near term.
Late in the second quarter of 1999, the
Federal Reserve adopted a tightening bias,
although the market had already priced in a
50 basis point tightening
and the long bond was trading near six
percent for the first time in almost a year.
By the time the Federal Reserve met on June
30, and increased the fed funds rate by one
quarter of one percent (25 basis points),
the market was prepared.
What was your strategy for this period?
Managing a Vermont fund provides its own set
of unique challenges -- the largest one
being the lack of supply of Vermont issues.
We try to participate
in most every new issue that comes to market
in Vermont, but restrictions placed on
issues to benefit individual investors in
the state have hindered our participation.
In the first quarter of 1999, we were able
to obtain a block of a new Middlebury
College issue -- an attractive purchase
given Middlebury College's fine reputation.
It historically trades well in the market.
We have been
Comparative Investment Performance
CTFR Lipper Other States Lehman
Vermont MunicipalMunicipal Debt
Municipal Bond
PortfolioFunds Average Index TR
6 month - 2.00% -1.18%
- -0.89%
1 year 1.35% 1.63%
2.76%
5 year* 5.81% 6.01%
7.00%
10 year* N/A N/A
N/A
Investment performance does not reflect the
deduction of any front-end sales charge.
TR represents total return. Source: Lipper
Analytical Services, Inc.
* Average annual return
<PAGE>
able to supplement our Vermont portfolio
with tax exempt issues from territories such
as Puerto Rico and Guam.
What is your outlook?
As stated earlier, the Federal Reserve
raised rates at the end of June as a
precaution against inflation. Having
anticipated that move we shortened our
portfolio maturity. The question that we are
now evaluating is whether subsequent rate
hikes will follow. In any event, we shall
remain nimble, proactive, and alert to the
possibility of rapid shifts in interest
rates.
July 20, 1999
Please remember, this discussion reflects
the views and opinions of Calvert Asset
Management Company at June 30, 1999, the end
of the reporting
period. Our strategy and the Fund's
portfolio composition may differ due to ever-
changing market and economic conditions.
While historical performance is no guarantee
of future results, it may give you a better
and more thorough understanding of our
investment
decisions and management philosophy.
Growth of a hypothetical $10,000 investment
Total returns assume reinvestment of
dividends and reflect the deduction of
Fund's maximum front-end sales charge of
3.75%. No sales charge has been applied to
the indices used for comparison. Past
performance is no guarantee of future
returns.
LINE GRAPH HERE
CTFR Vermont Municipal Portfolio
$15,941
Lehman Municipal Bond Fund Index TR
$17,721
Lipper Other States Municipal Debt Funds
Average $15,759
Portfolio
Statistics
monthly
dividend yield
6.30.99 4.08%
12.31.98 4.38%
30 day SEC yield
6.30.99 4.27%
12.31.98 4.12%
weighted
average maturity
6.30.99 17 years
12.31.98 16 years
effective duration
6.30.99 7.28 years
12.31.98 7.29 years
credit quality
distribution
as of 6.30.99
PIE CHART HERE
AAA 47%
AA 29%
A 14%
Cash & equivalents 10%
average annual
total return
as of 6.30.99
1 year -2.47%
5 year 5.01%
inception 5.81%
(4.01.91)
<PAGE>
Statement of Net Assets
June 30, 1999
Principal
Municipal Obligations - 98.0% Amount
Value
Vermont - 79.6%
Burlington Electric Revenue Bonds, 6.375%,
7/1/10, MBIA Insured $3,125,000 $3,471
,281
Chittenden Solid Waste District GO Bonds,
6.60%, 1/1/12,
Asset Guaranty Insured 2,000,000 2,146,000
Education and Health Revenue Bonds:
5.75%, 9/1/05 580,000 596,449
6.60%, 12/1/14 1,000,000 1,073,430
5.00%, 11/15/15, AMBAC Insured
2,000,000 1,915,740
5.50%, 11/1/16 3,000,000 3,023,730
5.50%, 7/1/18 1,955,000 1,851,405
6.25%, 9/1/18 2,000,000 2,047,920
5.625%, 10/1/25, FSA Insured 1,000,000
1,014,070
5.00%, 11/1/38 3,000,000 2,728,140
Education and Health VRDN, 3.55%, 6/1/05,
LOC: First National Bank of Boston
1,985,000 1,985,000
Housing Finance Authority Single Family
Housing Bonds,
7.20%, 11/1/11 575,000 585,051
IDA Revenue Bonds, 5.75%, 1/1/09,
LOC: First Vermont Bank and Trust
1,200,000 1,183,704
Municipal Bond Bank Revenue Bonds, 5.50%,
12/1/22,
AMBAC Insured 1,000,000 1,005,970
Rutland County Solid Waste GO Bonds:
5.80%, 11/1/99 110,000 110,848
5.95%, 11/1/00 110,000 112,885
6.10%, 11/1/01 110,000 114,214
6.25%, 11/1/02 110,000 115,754
6.35%, 11/1/03 110,000 117,063
6.45%, 11/1/04 110,000 118,350
6.50%, 11/1/05 105,000 113,988
6.55%, 11/1/06 100,000 109,349
6.60%, 11/1/07 100,000 110,003
6.70%, 11/1/08 100,000 111,209
6.75%, 11/1/09 100,000 112,009
6.80%, 11/1/10 100,000 113,070
6.80%, 11/1/11 100,000 113,603
6.85%, 11/1/12 100,000 114,595
State Colleges Revenue Bonds, 5.125%, 7/1/18
1,000,000 947,110
State GO Bonds:
6.30%, 1/15/06 2,500,000 2,730,025
Zero Coupon, 8/1/08 400,000 255,380
Zero Coupon, 8/1/09 300,000 181,053
5.00%, 1/15/11 3,000,000 2,984,340
6.45%, 2/1/12 1,950,000 2,090,244
State Industrial Redevelopment Revenue VRDN,
4.125%, 12/1/04,
LOC: First National Bank of Boston
350,000 350,000
Student Assistance Corporation Education
Loan Revenue Bonds,
6.50%, 12/15/05, FSA Insured 2,240,000
2,384,973
<PAGE>
Principal
Municipal Obligations - (Cont'd)
Amount Value
Vermont - (Cont'd)
University of Vermont and State Agriculture
College Revenue Bonds,
4.75%, 10/01/38, MBIA Insured $3,600,000
$3,167,136
Total Vermont Municipal Obligations
(Cost $40,839,236) 41,305,091
Territories - 18.3%
Guam Electric Power Authority Revenue Bonds,
5.25%, 10/1/12,
AMBAC Insured 2,000,000 2,030,420
Puerto Rico GO Bonds, 6.50%, 7/1/14
1,690,000 1,916,899
Puerto Rico Highway Electric Power Authority
VRDN,
3.34%, 7/1/22, BPA: Societe Generale
1,200,000 1,200,000
Puerto Rico Highway Transportation Authority
Revenue Bonds:
6.00%, 7/1/18, FSA Insured 1,000,000
1,090,760
4.75%, 7/1/38 3,000,000 2,648,880
Puerto Rico Infrastructure Financing
Authority Revenue VRDN,
3.27%, 7/1/28, BPA: Bank of America, AMBAC
Insured
600,000 600,000
Total Territories Municipal Obligations
(Cost $9,844,447) 9,486,959
Options Purchased 0.1%Contracts
Put Options on September U.S. Treasury Bond
Futures,
Expiration 8/20/99, Strike price 114
50 37,500
Total Options (Premium $35,656)
37,500
TOTAL INVESTMENTS (Cost and Premium
$50,719,339) - 98.0%
50,829,550
Other assets and liabilities, net -
2.0%
1,054,765
Net Assets - 100% $51,884,315
Net Assets Consist Of:
Paid-in capital applicable to 3,324,121
Class A shares of beneficial
interest, unlimited number of no par
shares authorized:
$51,049,629
Undistributed net investment income (loss)
151,912
Accumulated net realized gain (loss) on
investments 572,563
Net unrealized appreciation (depreciation)
on investments 110,211
Net assets $51,884,315
Net Asset Value Per Share
$15.61
Abbreviations: Explanation of
Guarantees:
AMBAC: AMBAC Indemnity CorporationBPA: Bond-
Purchase Agreement
FSA: Financial Security Assurance
LOC: Letter of Credit
GO: General Obligation
MBIA: MBIA Insurance Corporation
VRDN: Variable Rate Demand Notes
See notes to financial statements.
<PAGE>
Statement of Operations
Six Months Ended June 30, 1999
Net Investment Income
Investment Income
Interest income $1,327,635
Expenses
Investment advisory fee 153,366
Transfer agency fees and expenses
17,715
Trustees' fees and expenses 2,194
Accounting fees 7,148
Administrative fees 449
Custodian fees 7,477
Registration fees 3,507
Reports to shareholders 5,126
Professional fees 1,016
Miscellaneous 2,986
Total expenses 200,984
Fees paid indirectly (7,100)
Net expenses 193,884
Net Investment Income 1,133,751
Realized and Unrealized Gain (Loss) on
Investments
Net realized gain (loss) on securities
572,563
Change in unrealized appreciation or
(depreciation) (2,759,695)
Net Realized and Unrealized Gain
(Loss) on Investments
(2,187,132)
Increase (Decrease) in Net Assets
Resulting From Operations
($1,053,381)
See notes to financial statements.
<PAGE>
Statements of Changes in Net Assets
Six Months EndedY
ear Ended
June 30,December
31,
Increase (Decrease) in Net Assets
1999 1998
Operations
Net investment income $1,133,751$2,411,
657
Net realized gain (loss) 572,563
697,164
Change in unrealized appreciation or
(depreciation) (2,759,695)(258,5
57)
Increase (Decrease) in Net Assets
Resulting From Operations (1,053,381)
2,850,264
Distributions to shareholders from:
Net investment income (1,129,502)(2,385
,302)
Net realized gain ---- (953,229)
Total distributions (1,129,502)(3,338
,531)
Capital share transactions:
Shares sold 5,888,7576,525,371
Reinvestment of distributions 615,548
1,874,083
Shares redeemed (3,729,504)(6,812
,642)
Total capital share transactions
2,774,801 1,586,812
Total Increase (Decrease) in Net Assets
591,918 1,098,545
Net Assets
Beginning of period 51,292,39750,193,
852
End of period (including undistributed net
investment income
of $151,912 and $147,663, respectively)
$51,884,315 $51,292,397
Capital Share Activity
Shares sold 366,990
397,896
Reinvestment of distributions 38,310
114,634
Shares redeemed (231,672)(415,155)
Total capital share activity 173,628
97,375
See notes to financial statements.
<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. Shares
of the Portfolio are sold with a maximum
front-end sales charge of 3.75%.
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
(including options) listed
or traded on a national securities exchange
are valued at the last reported sale price.
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.
Risks from writing or purchasing option
securities arise from possible illiquidity
of the options market and the movement in
the value of the investment or in interest
rates. The risk associated with purchasing
options is limited to the premium originally
paid.
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 into 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.
Estimates: The preparation of financial
statements in conformity with generally
accepted accounting principles requires
management to make estimates and assumptions
that affect the reported amounts of assets
and liabilities and disclosure of contingent
assets and liabili-
<PAGE>
ties at the date of the financial statements
and the reported amounts of income and
expenses during the reporting period. Actual
results could differ from those estimates.
Expense Offset Arrangements: The Portfolio
has an arrangement with its custodian bank
whereby the custodian's and transfer agent's
fees may be paid indirectly by credits
earned on the Portfolio's cash on deposit
with the bank. Such a deposit arrangement is
an alternative to overnight investments.
Federal Income Taxes: No provision for
federal income or excise tax is required
since
the 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 Ameritas Acacia
Mutual Holding 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
the following annual rates of average daily
net assets: .60% on the first $500 million,
.50% on the next $500 million and .40% on
the excess of $1 billion. Under the terms of
the agreement, $31,622 was payable at period
end.
Calvert Administrative Services Company, an
affiliate of the Advisor, provides
administrative services to the Fund for an
annual fee. The Fund (exclusive of the Money
Market portfolio) pays monthly an annual fee
of $80,000, which is allocated between the
Portfolios based on their relative net
assets.
Calvert Distributors, Inc., an affiliate of
the Advisor, is the distributor and
principal underwriter for the Portfolio. The
Distributor received $22,467 as
its portion of commissions charged on sales
of the Portfolio.
Calvert Shareholder Services, Inc. ("CSSI"),
an affiliate of the Advisor, is the
shareholder servicing agent for the
Portfolio. For its services, CSSI received a
fee of $2,527 for the six months ended June
30, 1999. Under the terms of the agreement,
$503 was payable at period end. National
Financial Data Services, Inc., is the
transfer and dividend disbursing agent.
Each Trustee who is not affiliated with the
Advisor received an annual fee of $20,500
plus up to $1,500 for each Board and
Committee meeting attended. Trustee fees are
allocated to each of the funds served.
Note C -- Investment Activity
During the period, purchases and sales of
investments, other than short-term, were
$9,348,010 and $11,661,128, respectively.
The cost of investments owned at June 30,
1999 was substantially the same for federal
income tax and financial reporting purposes.
Net unrealized appreciation aggregated
$110,211, of which $1,178,866 related to
appreciated securities and $1,068,655
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. All transactions are
executed at independently derived prices.
<PAGE>
Note D -- Line of Credit
A financing agreement is in place with all
Calvert Group Funds and State Street Bank
and Trust Company ("the Bank"). Under the
agreement, the Bank is providing an
unsecured line of credit facility, in the
aggregate amount of $50 million ($25 million
committed and $25 million uncommitted), to
be accessed by the Funds for temporary or
emergency purposes only.
Borrowings under this facility bear interest
at the overnight Federal Funds Rate plus
.50% per annum. A commitment fee of .10% per
annum will be incurred on the unused portion
of the committed facility which will be
allocated to all participating funds. The
Fund had no loans outstanding pursuant to
this line of credit at June 30 ,1999.
<PAGE>
Financial Highlights
Periods Ended
June 30,December 31,Decem
ber 31,
Class A Shares 1999 1998 1997
Net asset value, beginning$16.28 $16.45
$16.33
Income from investment operations
Net investment income.35 .78 .82
Net realized and unrealized
gain (loss) (.67) .13 .26
Total from investment
operations (.32) .91 1.08
Distributions from
Net investment income(.35)(.77) (.82)
Net realized gains ---- (.31) (.14)
Total distributions (.35) (1.08)
(.96)
Total increase (decrease) in net
asset value (.67) (.17) .12
Net asset value, ending$15.61$16.28 $16.45
Total return * (2.00%) 5.67% 6.90%
Ratios to average net assets:
Net investment income4.44% (a) 4.73%
5.11%
Total expenses +.79% (a) .75% .76%
Net expenses .76% (a) .72% .73%
Portfolio turnover 19% 32% 14%
Net assets, ending (in thousands) 51,884
$51,292 $50,194
Number of shares outstanding,
ending (in thousands)3,3243,150 3,052
Years Ended
December 31,December 31,Decem
ber 31,
Class A Shares 1996 1995 1994
Net asset value, beginning$16.62 $15.34
$16.66
Income from investment operations
Net investment income.88 .87 .87
Net realized and unrealized
gain (loss) (.25) 1.35 (1.35)
Total from investment
operations .63 2.22 (.48)
Distributions from
Net investment income(.85)(.85) (.84)
Net realized gains(.07) (.09) --
Total distributions (.92) (.94)
(.84)
Total increase (decrease) in net
asset value (.29) 1.28 (1.32)
Net asset value, ending$16.33$16.62 $15.34
Total return * 3.98% 14.86% (2.88%)
Ratios to average net assets:
Net investment income5.27%5.35% 5.47%
Total expenses + .77% .76% --
Net expenses .73% .75% .73%
Portfolio turnover 24% 12% 11%
Net assets, ending (in thousands) $49,774
$60,203 $64,215
Number of shares outstanding,
ending (in thousands)3,0483,621 4,185
(a) Annualized
* Total return does not reflect deduction of
Class A front-end sales charge.
+ Effective December 31, 1995, this ratio
reflects total expenses before reduction for
fees paid indirectly; such reductions are
included in the ratio of net expenses. Total
expenses are presented net of expense
waivers and reimbursements.
<PAGE>
A special meeting of shareholders was
scheduled for February 24, 1999.
There were several proposals voted upon at
the meeting. A brief description
of each proposal and the number of votes
received for, against, and votes to abstain
is shown below. All proposals were passed.
Proposal 1 - To elect the Board of Trustees.
Nominees For Against
Richard L. Baird, Jr.1,797,362104,898
Frank H. Blatz, Jr.1,807,29994,961
Frederick T. Borts1,807,26894,992
Charles E. Diehl1,807,984 94,276
Douglas E. Feldman1,807,98494,276
Peter W. Gavian 1,816,869 85,391
John G. Guffey, Jr.1,770,520131,740
Barbara J. Krumsiek1,819,65282,608
M. Charito Kruvant1,819,65282,608
Arthur J. Pugh 1,816,869 85,391
David R. Rochat 1,819,652 82,608
D. Wayne Silby 1,820,873 81,387
Proposal 2 - To approve amended fundamental
investment restrictions to: (a) delete
restrictions that are no longer required to
be fundamental due to
changes in state laws or which otherwise
need not be fundamental; and (b) to revise
the language of those restrictions that are
still required to be fundamental.
For Against Abstain
Broker Non-Vote
1,494,105 44,927101,738 261,490
Proposal 3 - To approve a new investment
advisory agreement with the investment
advisor, Calvert Asset Management Company,
Inc. ("CAMCO").
For Against Abstain
1,802,676 13,749 85,834
Proposal 4 - To change the fundamental
policy concerning credit quality to a non-
fundamental policy, allowing Vermont to
invest in non-investment grade securities.
For Against Abstain
Broker Non-Vote
1,364,319 147,537128,914 261,490
Proposal 5 - Applied to a different fund in
Calvert Tax-Free Reserves.
Proposal 6 - To ratify the Board's selection
of auditors, PricewaterhouseCoopers LLP.
For Against Abstain
1,815,667 4,318 82,274
<PAGE>
Calvert Group And The Year 2000
Plans and Progress
We are now less than a year away from the
year 2000, a problematic date for computer
systems coded for two-character year format.
Entered as "00," the year 2000 would be
processed as 1900, a mistake that could foul
a variety of date-sensitive transactions.
As your mutual fund sponsor, our goal is
make sure there is no interruption in the
level of service you receive. In the summary
below, we've outlined the steps Calvert
Group is taking to ensure our systems
perform reliably.
Step One--Assess Systems and Software.
Develop an Action Plan.
In 1997, we identified all systems,
operating platforms and software potentially
affected by the millennium bug. These
included:
Calvert Group systems--portfolio trading,
sales contact and reporting
and internal management reporting
transfer agency systems--shareholder
record-keeping and transaction
processing
subadvisor systems--investment accounting
other third-party data and service
systems
We also formed a Y2K task force, led by
Calvert's vice president of technology. This
group has identified and prioritized our
efforts to achieve year 2000 compliance.
Step Two--Test for Compliance. Repair
Systems as Necessary.
Internal systems have been tested. We've
made repairs and moved modified code into
production. These systems are now fully
compliant. Transfer
agency systems were re-engineered for
compliance in 1989. Recent tests indicate
these are, in fact, compliant. The readiness
of third-party systems, including subadvisor
systems, has been evaluated. Based on
information received from these groups, we
have found no significant obstacles to
compliance.
Step Three--Confirm Compliance. Finalize
Contingency Plan.
Testing of transfer agency systems will
continue through 1999 to ensure these remain
compliant and continue to interact correctly
with external systems and processes. The
transfer agency has established a back-up
site, should main systems fail, and
compliance testing of these contingency
measures are also underway. We are
developing contingency plans to ensure that
any
unforeseen systems failures will not
adversely affect our operations or
inconvenience our shareholders.
For more information or to get an update on
remediation and testing efforts, please
visit us online at www.calvertgroup.com.
<PAGE>
Calvert
Tax-Free
Reserves
Vermont Municipal
Portfolio
This report is intended to provide fund
information to
shareholders. It is not authorized for
distribution to
prospective investors unless preceded or
accompanied by a prospectus.
printed on
recycled paper
using soy-
based inks
To Open an Account
800-368-2748
Yields and Prices
Calvert Information Network
(24 hours, 7 days a week)
800-368-2745
Service for Existing Account
Shareholders: 800-368-2745
Brokers: 800-368-2746
TDD for Hearing Impaired
800-541-1524
Branch Office
4550 Montgomery Avenue
Suite 1000 North
Bethesda, Maryland 20814
Registered, Certified
or Overnight Mail
Calvert Group
c/o NFDS,
330 West 9th Street
Kansas City, MO 64105
Web Site
http://www.calvertgroup.com
Principal Underwriter
Calvert Distributors, Inc.
4550 Montgomery Avenue
Suite 1000 North
Bethesda, Maryland 20814
Calvert Group's
Family of Funds
Tax-Exempt Money Market Funds
CTFR Money Market Portfolio
CTFR California Money Market Portfolio
Taxable Money Market Funds
First Government Money Market Fund
CSIF Money Market Portfolio
Balanced Fund
CSIF Balanced Portfolio
Municipal Funds
CTFR Limited-Term Portfolio
CTFR Long-Term Portfolio
CTFR Vermont Municipal Portfolio
National Muni. Intermediate Portfolio
California Muni. Intermediate Portfolio
Maryland Muni. Intermediate Portfolio
Virginia Muni. Intermediate Portfolio
Taxable Bond Funds
CSIF Bond Portfolio
Income Fund
Equity Funds
CSIF Managed Index Portfolio
CSIF Equity Portfolio
Capital Accumulation Fund
CWV International Equity Fund
New Vision Small Cap Fund
New Africa Fund
