DECEMBER 31, 1999
ANNUAL
REPORT
CALVERT TAX-FREE RESERVES CALIFORNIA MONEY MARKET
PORTFOLIO
<PAGE>
CONTENTS
PRESIDENT'S LETTER
1
PORTFOLIO
MANAGER REMARKS
2
REPORT OF INDEPENDENT ACCOUNTANTS
4
STATEMENT OF
NET ASSETS
5
STATEMENT OF OPERATIONS
8
STATEMENTS OF CHANGES IN NET ASSETS
9
NOTES TO
FINANCIAL STATEMENTS
10
FINANCIAL HIGHLIGHTS
12
DEAR SHAREHOLDERS:
1999 WAS A VERY CHALLENGING YEAR FOR THE U.S. BOND MARKETS. ALL SEGMENTS FROM
U.S. TREASURIES TO LONG MUNICIPALS SUFFERED IN A PERIOD OF RISING RATES. THE
YIELD CURVE HAS FLATTENED AS SHORT-TERM RATES ROSE FASTER EACH TIME THE
BENCHMARK FEDERAL FUNDS RATE ROSE.
WE HAVE BEEN WATCHFUL OF THE FED AND HAVE ANTICIPATED THE UPWARD TREND AS THEY
HIKED RATES IN JUNE, AUGUST AND NOVEMBER OF 1999. EACH TIME, THE CONSENSUS WAS
THAT THE INCREASES WERE ENOUGH, BUT AS WE NOW KNOW THE FED PROBABLY WILL
CONTINUE TO RAISE RATES INTO EARLY 2000.
THE TREND IN INTEREST RATES CONTINUES TO BE HIGHER AND WE EXPECT TO SEE SEVERAL
TIGHTENING STEPS BEING TAKEN BEFORE COMPLETING THE CURRENT CYCLE. ALTHOUGH THERE
ARE SOME SIGNS OF MODERATION IN VARIOUS SECTORS OF THE ECONOMY, WE BELIEVE THE
ECONOMY WILL NOT COOL DOWN UNTIL FURTHER RATE HIKES TAKE PLACE. SIGNS OF
POTENTIAL INFLATION ARE BEGINNING TO CREEP BACK INTO THE ECONOMIC STATISTICS AND
THESE WILL PLAY AN IMPORTANT ROLE IN THE DIRECTION OF INTEREST RATES.
OVERALL, THE ECONOMIC ENVIRONMENT IS HEALTHY ALTHOUGH MARKED WITH VOLATILITY.
INVESTOR DISCIPLINE AND THE NEED TO MAKE INFORMED DECISIONS IS AS IMPORTANT AS
EVER. AS ALWAYS, WE ENCOURAGE YOU TO MAKE DECISIONS BASED ON YOUR FINANCIAL
OBLIGATIONS AND TOLERANCE FOR RISK. YOUR FINANCIAL PROFESSIONAL CAN SUGGEST
STRATEGIES THAT CAN KEEP YOU ON TRACK TO MEET THESE OBJECTIVES.
WE APPRECIATE YOUR INVESTMENT IN CALVERT GROUP FUNDS AND LOOK FORWARD TO WORKING
WITH YOU TO ACHIEVE YOUR FINANCIAL GOALS.
SINCERELY,
BARBARA J. KRUMSIEK
PRESIDENT AND CEO
JANUARY 20, 2000
<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 WOULD YOU CHARACTERIZE THE INVESTMENT CLIMATE OVER THE PAST YEAR?
SINCE THE U.S. ECONOMY CONTINUED TO EXPAND IN 1999, THE FEDERAL RESERVE FEARED
THAT MORE GROWTH ALONG WITH UNEMPLOYMENT NEAR 4%, COULD SPARK INFLATION.
THEREFORE, THE FEDERAL RESERVE RAISED THE FEDERAL FUNDS RATE THREE TIMES DURING
THE YEAR-IN JUNE, AUGUST, AND NOVEMBER. THE FEDERAL FUNDS RATE WAS RAISED IN
QUARTER-POINT INCREMENTS FROM 4.75% TO 5.50%.
WHILE STOCKS CONTINUED TO SOAR, BONDS EXPERIENCED A SEVERE BEAR MARKET THAT SAW
THE ONE-YEAR TREASURY BILL YIELD RISE FROM NEAR 4.50% UP TO 6%, AND THE 30-YEAR
LONG BOND YIELD RISE FROM 5% UP TO 6.5%. THE MUNICIPAL MARKET ALSO DID POORLY AS
THE EFFECTS FROM THE THREE FED RATE HIKES WERE COMPOUNDED BY INVESTOR
REDEMPTIONS FROM BOND FUNDS. THE ONLY SAFE HAVEN IN THE MUNICIPAL MARKET WAS IN
THE VERY SHORT END OF THE MATURITY SPECTRUM.
WHAT WAS YOUR STRATEGY DURING THE PERIOD?
THE LACK OF SUPPLY OF NEW ISSUES IN THE MARKET KEPT TAX-FREE RATES LOW DURING
MOST OF THE YEAR -- AND THIS IS PARTICULARLY TRUE FOR CALIFORNIA STATE
SECURITIES. THERE WERE TIMES, HOWEVER, WHEN TECHNICAL FACTORS CAUSED SHORT-TERM
RATES TO SPIKE IN RELATION TO TAXABLE RATES, AND AT THESE TIMES WE ATTEMPTED TO
EXTEND THE AVERAGE MATURITY OF THE FUND. THESE RATE INCREASES USUALLY OCCUR AT
TAX TIME, TOWARD THE END OF SUMMER WHEN NOTE ISSUANCE PEAKS, AND AT THE END OF
THE YEAR. IN 1999, WE LENGTHENED THE AVERAGE MATURITY OF THE FUND IN APRIL AND
AT THE END OF THE SUMMER WHEN HIGHER RATES COULD BE FOUND. IN LIGHT OF THE
MARKET'S GENERAL PERCEPTION THAT THE FED WOULD SOON RESUME RAISING THE FED FUNDS
RATE, (BARRING ANY Y2K PROBLEMS) WE INTENDED TO LET THE AVERAGE MATURITY OF THE
FUND SHORTEN UNTIL A CLEARER INTEREST RATE PICTURE EMERGED IN EARLY 2000 AND
CALIFORNIA MUNICIPAL RATES BECAME MORE ATTRACTIVE.
HOW DID THE FUND PERFORM?
THE PORTFOLIO'S TOTAL RETURN FOR THE YEAR ENDED DECEMBER 31, 1999 WAS 2.80%.
THIS WAS ABOVE THE 2.51% TOTAL RETURN FOR THE AVERAGE CALIFORNIA TAX-EXEMPT
MONEY MARKET FUND TRACKED BY LIPPER ANALYTICAL SERVICES, INC.
<PAGE>
WHAT IS YOUR OUTLOOK?
WE FEEL THE FEDERAL RESERVE WILL LIKELY RAISE RATES AGAIN IN THE COMING MONTHS
IN ORDER TO PREVENT INFLATION FROM GAINING A FOOTHOLD. ADDITIONALLY, SINCE
TAX-FREE MONEY MARKET RATES TEND TO BE LOWER AT THE START OF THE YEAR DUE TO
MONEY FLOWING INTO THE MARKET, WE WILL BIDE OUR TIME UNTIL MUNICIPAL RATES
BECOME ATTRACTIVE RELATIVE TO TAXABLE RATES AND WE HAVE A CLEARER PICTURE OF THE
FEDERAL RESERVE'S INTENTIONS. WE WILL THEN BEGIN TO CONSIDER PURCHASING LONGER
MATURITY ISSUES.
JANUARY 20, 2000
PLEASE REMEMBER, THIS DISCUSSION REFLECTS THE VIEWS AND OPINIONS OF CALVERT
ASSET MANAGEMENT COMPANY AT DECEMBER 31, 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.
PORTFOLIO
STATISTICS
WEIGHTED
AVERAGE MATURITY
12.31.99 69 DAYS
12.31.98 60 DAYS
CREDIT QUALITY
DISTRIBUTION
AS OF 12.31.99
[INSERT PIE CHART HERE]
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 12.31.99
1 YEAR 2.80%
5 YEAR 3.25%
INCEPTION 3.54%
(10.16.89)
COMPARATIVE MONTH-END YIELDS
IBC'S STATE
CTFR SPECIFIC SB&GP
CALIFORNIA TAX-FREE MONEY
MONEY MARKET MARKET AVERAGES
12.31.99 3.15% 3.08%
11.30.99 2.93% 2.89%
10.31.99 2.71% 2.67%
9.30.99 2.74% 2.65%
8.31.99 2.65% 2.46%
7.31.99 2.66% 2.36%
6.30.99 2.83% 2.57%
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.
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE BOARD OF TRUSTEES OF CALVERT TAX-FREE RESERVES AND SHAREHOLDERS OF
CALIFORNIA MONEY MARKET PORTFOLIO:
IN OUR OPINION, THE ACCOMPANYING STATEMENT OF NET ASSETS AND THE RELATED
STATEMENT OF OPERATIONS, STATEMENTS OF CHANGES IN NET ASSETS AND FINANCIAL
HIGHLIGHTS PRESENT FAIRLY, IN ALL MATERIAL RESPECTS, THE FINANCIAL POSITION OF
CALIFORNIA MONEY MARKET PORTFOLIO (ONE OF THE PORTFOLIOS COMPRISING CALVERT
TAX-FREE RESERVES, HEREINAFTER REFERRED TO AS THE "FUND"), AT DECEMBER 31, 1999,
THE RESULTS OF ITS OPERATIONS, THE CHANGES IN ITS NET ASSETS AND THE FINANCIAL
HIGHLIGHTS FOR EACH OF THE PERIODS PRESENTED, IN CONFORMITY WITH ACCOUNTING
PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES. THESE FINANCIAL STATEMENTS
AND FINANCIAL HIGHLIGHTS (HEREINAFTER REFERRED TO AS "FINANCIAL STATEMENTS") ARE
THE RESPONSIBILITY OF THE FUND'S MANAGEMENT; OUR RESPONSIBILITY IS TO EXPRESS AN
OPINION ON THESE FINANCIAL STATEMENTS BASED ON OUR AUDITS. WE CONDUCTED OUR
AUDITS OF THESE FINANCIAL STATEMENTS IN ACCORDANCE WITH AUDITING STANDARDS
GENERALLY ACCEPTED IN THE UNITED STATES, WHICH REQUIRE THAT WE PLAN AND PERFORM
THE AUDIT TO OBTAIN REASONABLE ASSURANCE ABOUT WHETHER THE FINANCIAL STATEMENTS
ARE FREE OF MATERIAL MISSTATEMENT. AN AUDIT INCLUDES EXAMINING, ON A TEST
BASIS, EVIDENCE SUPPORTING THE AMOUNTS AND DISCLOSURES IN THE FINANCIAL
STATEMENTS, ASSESSING THE ACCOUNTING PRINCIPLES USED AND SIGNIFICANT ESTIMATES
MADE BY MANAGEMENT, AND EVALUATING THE OVERALL FINANCIAL STATEMENT PRESENTATION.
WE BELIEVE THAT OUR AUDITS, WHICH INCLUDED CONFIRMATION OF SECURITIES AT
DECEMBER 31, 1999 BY CORRESPONDENCE WITH THE CUSTODIAN AND BROKERS, PROVIDE A
REASONABLE BASIS FOR THE OPINION EXPRESSED ABOVE.
PRICEWATERHOUSECOOPERS LLP
BALTIMORE, MARYLAND
FEBRUARY 11, 2000
<PAGE>
STATEMENT OF NET ASSETS
DECEMBER 31, 1999
PRINCIPAL
MUNICIPAL OBLIGATIONS - 98.8% AMOUNT VALUE
CALIFORNIA - 93.3%
ABN AMRO CALIFORNIA MUNITOPS CERTIFICATES TRUST
VRDN, 5.39%, 8/1/24, BPA: ABN AMRO BANK, INSUR: FGIC
$3,000,000 $3,000,000
CONTRA COSTA COUNTY MFH REVENUE VRDN, 4.60%, 10/20/28,
LOC:STATE STREET BANK AND TRUST 7,360,000 7,360,000
FRESNO MFH REVENUE VRDN, 7.35%, 5/1/15,
LOC: TOKAI BANK, LTD. 8,800,000 8,800,000
FRESNO COUNTY TAX AND REVENUE ANTICIPATION NOTES,
4.00%, 6/30/00 5,000,000 5,016,736
HOUSING FINANCE AGENCY REVENUE VRDN:
4.70%, 8/1/14, BPA: BANCO SANTANDER, INSUR: MBIA
5,865,000 5,865,000
5.35%, 8/1/10, TOA: CITIBANK, INSUR: MBIA 2,410,000 2,410,000
INLAND VALLEY DEVELOPMENT AGENCY CALIFORNIA 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, 5.80%, 12/1/05, LOC: BANK OF AMERICA 20,600,000 20,600,000
LOS ANGELES CONVENTION & EXHIBITION CENTER AUTHORITY LEASE REVENUE
VRDN, 5.15%, 8/15/18, BPA: MERRILL LYNCH, INSUR: MBIA
9,600,000 9,600,000
LOS ANGELES COUNTY TAX & REVENUE ANTICIPATION NOTES, 4.00%, 6/30/00
20,000,000 20,065,061
LOS ANGELES COUNTY SCHOOLS POOLED TRANSPORTATION NOTES,
4.00%, 9/29/00, INSUR: FSA 5,000,000 5,015,429
LOS ANGELES COUNTY MFH REVENUE VRDN:
4.50% 12/1/07, CONF: FEDERAL HOME LOAN BANK 4,000,000 4,000,000
5.95% 11/1/09, LOC: INDUSTRIAL BANK OF JAPAN
17,000,000 17,000,000
LOS ANGELES TRANSPORTATION COMMUNITY SALES TAX REVENUE VRDN
5.48%, 8/20/03, LOC: CREDIT SUISSE, INSUR: MBIA
9,490,000 9,490,000
MARIN COUNTY HOUSING AUTHORITY MFH REVENUE VRDN,
4.80%, 10/15/29, LOC: MORGAN GUARANTY TRUST
8,800,000 8,800,000
MIDWAY SCHOOL DISTRICT COPS VRDN, 5.05%, 2/1/23,
LOC: UNION BANK OF CALIFORNIA 4,965,000 4,965,000
MODESTO IRRIGATION DISTRICT FINANCING AUTHORITY REVENUE VRDN,
5.15%, 10/1/15, BPA: SOCIETE GENERALE, INSUR: MBIA
14,000,000 14,000,000
OCEANSIDE MFH REVENUE VRDN, 5.55%, 8/1/17,
SURBD: CONTINENTAL CASUALTY COMPANY 6,040,000 6,040,000
ONTARIO REVENUE VRDN, 5.15%, 10/1/26, CONF: CAL STERS,
LOC: UNION BANK OF CALIFORNIA 7,770,000 7,770,000
ORANGE COUNTY WATER DISTRICT VRDN, 4.25%, 8/15/15,
LOC: BAYER LANDSBANK 6,200,000 6,200,000
ORANGE COUNTY MFH AUTHORITY VRDN, 4.20%, 5/1/22,
LOC: BANQUE PARIBAS 3,600,000 3,600,000
PALMDALE SCHOOL DISTRICT PROJECT LEASE VRDN:
5.00%, 12/13/10, LOC: NATIONAL WESTMINSTER BANK
3,879,999 3,880,000
5.65%, 12/13/10, LOC: NATIONAL WESTMINSTER BANK
5,550,000 5,550,000
PITNEY BOWES CREDIT CORPORATION LEASETOPS TRUST CERTIFICATES VRDN,
5.91%, 10/10/01, BPA: PITNEY BOWES CREDIT, INSUR: AMBAC
20,520,375 20,520,375
RIVERSIDE COUNTY SCHOOL FINANCIAL AUTHORITY NOTES, 4.00%, 8/1/00
13,415,000 13,456,322
<PAGE>
PRINCIPAL
MUNICIPAL OBLIGATIONS - CONT'D AMOUNT VALUE
CALIFORNIA - CONT'D
SAN BERNARDINO TAX AND REVENUE ANTICIPATION NOTES, 3.75% 9/29/00
$18,000,00 $18,024,409
SAN BERNARDINO COPS VRDN, 6.36%, 3/1/24,
LOC: BANK OF TOKYO - MITSUBISHI, LTD. 4,050,000 4,050,000
SAN BERNARDINO MFH REVENUE VRDN:
5.00%, 6/1/05, LOC: HOUSEHOLD FEDERAL SAVINGS 2,000,000 2,000,000
5.05%, 8/25/29, LOC: CHASE MANHATTAN BANK 5,520,0005 5,520,000
SAN DIEGO TAX ANTICIPATION NOTES, 4.25%, 9/29/00
8,000,000 8,042,672
SAN FRANCISCO REDEVELOPMENT MFH VRDN:
4.35%, 10/1/00, LOC: CREDIT SUISSE 6,230,000 6,230,000
4.35%, 10/1/01, LOC: CREDIT SUISSE 2,400,000 2,400,000
4.00%, 12/1/05, LOC: BANK ONE, AZ 9,300,000 9,300,000
SAN MARCOS IDA VRDN, 5.11%, 12/1/20,
LOC: UNION BANK CALIFORNIA 1,465,000 1,465,000
SCHOOLS CASH RESERVE PROGRAM AUTHORITY REVENUE NOTES,
4.00%, 7/3/00, INSUR: AMBAC 37,045,000 37,131,598
STATE ECONOMIC DEVELOPMENT FINANCIAL AUTHORITY VRDN:
5.25%, 3/1/23, LOC: AMERICAN NATIONAL BANK AND TRUST
3,000,000 3,000,000
STATE REVENUE ANTICIPATION NOTES, 4.00%, 6/30/00
14,225,000 14,273,100
STATE REVENUE ANTICIPATION NOTES VRDN, 3.20%, 12/1/32
5,040,000 5,040,000
STATE TRASPORTATION FINANCE AUTHORITY VRDN, 4.65%, 10/1/27,
BPA: CREDIT SUISSE, INSUR: FSA 20,000,000 20,000,000
STATEWIDE COMMUNITY DEVELOPMENT AUTHORITY MFH VRDN,
5.25% 7/1/27, LOC: BANQUE PARIBAS 5,070,000 5,070,000
STATEWIDE COMMUNITY DEVELOPMENT CORPORATION REVENUE VRDN,
5.50%, 6/1/19, CONF: CAL STERS, LOC: BANK OF TOKYO
2,675,000 2,675,000
5.50%, 5/1/22, CONF: CAL STERS, LOC: SANWA BANK OF CALIFORNIA
2,630,000 2,630,000
WATEREUSE FINANCIAL AUTHORITY REVENUE BOND VRDN, 4.65%, 5/1/28,
BPA: CREDIT SUISSE, INSUR: FSA 17,800,000 17,800,000
VALLEJO IDA REVENUE VRDN, 5.25%, 12/1/23, LOC: WELLS FARGO BANK
5,300,000 5,300,000
VICTORVILLE MFH REVENUE VRDN, 6.05%, 12/1/15,
C/LOC: CALIFORNIA FEDERAL BANK 6,535,000 6,535,000
PUERTO RICO - 5.5%
PUERTO RICO ELECTRIC POWER AUTHORITY GO VRDN:
5.16%, 7/1/16, BPA: MERRILL LYNCH, INSUR: FSA
1,760,000 1,760,000
5.16%, 7/1/19, BPA: MERRILL LYNCH, INSUR: FSA
6,000,000 6,000,000
5.30%, 7/1/22, BPA: SOCIETE GENERALE 7,000,000 7,000,000
PUERTO RICO INFRASTRUCTURE GO VRDN, 5.16%, 7/1/28,
BPA: BANK OF AMERICA, INSUR: AMBAC 8,665,000 8,665,000
TOTAL INVESTMENTS (COST $422,915,702) - 98.8% 422,915,702
OTHER ASSETS AND LIABILITIES, NET - 1.2% 5,028,925
NET ASSETS - 100% $427,944,627
<PAGE>
NET ASSETS CONSIST OF: VALUE
PAID IN CAPITAL APPLICABLE TO 428,077,051 SHARES OF BENEFICIAL
INTEREST, UNLIMITED NUMBER OF NO PAR SHARES AUTHORIZED $428,077,091
UNDISTRIBUTED NET INVESTMENT INCOME 335
ACCUMULATED NET REALIZED GAIN (LOSS) ON INVESTMENTS (132,799)
NET ASSETS $427,944,627
NET ASSET VALUE PER SHARE $1.00
EXPLANATION OF GUARANTEES: ABBREVIATIONS:
BPA: BOND-PURCHASE AGREEMENT COPS: CERTIFICATES OF PARTICIPATION
CONF: CONFIRMING LETTER OF CREDIT FGIC: FINANCIAL GUARANTY INSURANCE COMPANY
INSUR: INSURANCE FSA: FINANCIAL SECURITY ADVISOR
LOC: LETTER OF CREDIT GO: GENERAL OBLIGATION
C/LOC: COLLATERALIZED LOC IDA: INDUSTRIAL DEVELOPMENT AUTHORITY
SA: SWAP AGREEMENT MBIA: MUNICIPAL BOND INSURANCE ASSOCIATION
SURBD: SURETY BOND MFH: MULTI-FAMILY HOUSING
TOA: TENDER OPTION AGREEMENT VRDN: VARIABLE RATE DEMAND NOTES
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1999
NET INVESTMENT INCOME
INVESTMENT INCOME:
INTEREST INCOME $14,783,453
EXPENSES:
INVESTMENT ADVISORY FEE 2,175,707
TRANSFER AGENCY FEES AND EXPENSES 446,070
ACCOUNTING FEES 47,838
TRUSTEES' FEES AND EXPENSES 41,049
ADMINISTRATIVE FEES 31,685
CUSTODIAN FEES 38,904
REPORTS TO SHAREHOLDERS 80,889
PROFESSIONAL FEES 15,981
MISCELLANEOUS 8,944
TOTAL EXPENSES 2,887,067
FEES PAID INDIRECTLY (63,882)
NET EXPENSES 2,823,185
NET INVESTMENT INCOME 11,960,268
REALIZED GAIN (LOSS) ON INVESTMENTS
NET REALIZED GAIN (LOSS) (17,324)
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $11,942,944
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
INCREASE (DECREASE) IN NET ASSETS 1999 1998
OPERATIONS:
NET INVESTMENT INCOME $11,960,268 $11,690,354
NET REALIZED GAIN (LOSS) (17,324) 16,197
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 11,942,944 11,706,551
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME (11,977,529) (11,679,754)
CAPITAL SHARE TRANSACTIONS:
SHARES SOLD 382,201,783 466,041,563
REINVESTMENT OF DISTRIBUTIONS 11,781,361 11,503,395
SHARES REDEEMED (403,579,178) (360,997,804)
TOTAL CAPITAL SHARE TRANSACTIONS (9,596,034) 116,547,154
TOTAL INCREASE (DECREASE) IN NET ASSETS (9,630,619) 116,573,951
NET ASSETS
BEGINNING OF YEAR 437,575,246 321,001,295
END OF YEAR (INCLUDING UNDISTRIBUTED NET INVESTMENT INCOME
OF $335 AND $17,596, RESPECTIVELY) $427,944,627 $437,575,246
SHARE ACTIVITY
SHARES SOLD 382,201,783 466,041,563
REINVESTMENT OF DISTRIBUTIONS 11,781,361 11,503,395
SHARES REDEEMED (403,579,178) (360,997,804)
NET SHARE ACTIVITY (9,596,034) 116,547,154
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 FUND IS COMPRISED OF FIVE SEPARATE PORTFOLIOS. 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 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 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
TAXABLE EARNINGS.
NOTE B - RELATED PARTY TRANSACTIONS
CALVERT ASSET MANAGEMENT COMPANY, INC. (THE "ADVISOR") IS WHOLLY-OWNED BY
CALVERT GROUP, LTD. ("CALVERT"), WHICH IS INDIRECTLY WHOLLY-OWNED BY AMERITAS
ACACIA MUTUAL HOLDING COMPANY. 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, $237,987 WAS PAYABLE AT YEAR 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, $2,677 WAS PAYABLE AT YEAR 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 $238,646 FOR THE YEAR ENDED DECEMBER 31, 1999. UNDER THE TERMS OF THE
AGREEMENT, $19,591 WAS PAYABLE AT YEAR 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 DECEMBER 31, 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, 1999 WITH
EXPIRATION DATES:
CAPITAL LOSS CARRYFORWARDS EXPIRATION DATES
$115,124 12/31/03
351 12/31/04
17,324 12/31/07
CAPITAL LOSS CARRYFORWARDS MAY BE UTILIZED TO OFFSET CURRENT AND FUTURE CAPITAL
GAINS UNTIL EXPIRATION.
THE PORTFOLIO MAY SELL OR PURCHASE SECURITIES FROM OTHER PORTFOLIOS MANAGED BY
THE ADVISOR, PRIMARILY AS A CASH MANAGEMENT PRACTICE. ALL TRANSACTIONS ARE
EXECUTED AT INDEPENDENTLY DERIVED PRICES.
NOTE D - LINE OF CREDIT
A FINANCING AGREEMENT IS IN PLACE WITH ALL CALVERT GROUP FUNDS (EXCEPT FOR THE
CALVERT SOCIAL INVESTMENT FUND MANAGED INDEX AND CVS AMERITAS INDEX 500
PORTFOLIOS) AND STATE STREET BANK AND TRUST COMPANY ("THE BANK"). UNDER THE
AGREEMENT, THE BANK IS PROVIDING AN UNSECURED LINE OF CREDIT FACILITY, IN THE
AGGREGATE AMOUNT OF $50 MILLION ($25 MILLION COMMITTED AND $25 MILLION
UNCOMMITTED), TO BE ACCESSED BY THE FUNDS FOR TEMPORARY OR EMERGENCY PURPOSES
ONLY. BORROWINGS UNDER THIS FACILITY BEAR INTEREST AT THE OVERNIGHT FEDERAL
FUNDS RATE PLUS .50% PER ANNUM. A COMMITMENT FEE OF .10% PER ANNUM WILL BE
INCURRED ON THE UNUSED PORTION OF THE COMMITTED FACILITY WHICH WILL BE ALLOCATED
TO ALL PARTICIPATING FUNDS. THE FUND HAD NO LOANS OUTSTANDING PURSUANT TO THIS
LINE OF CREDIT AT DECEMBER 31, 1999.
<PAGE>
FINANCIAL HIGHLIGHTS
YEARS ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31,
1999 1998 1997
NET ASSET VALUE, BEGINNING $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .028 .031 .032
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.028) (.031) (.032)
NET ASSET VALUE, ENDING $1.00 $1.00 $1.00
TOTAL RETURN 2.80% 3.19% 3.28%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME 2.75% 3.13% 3.22%
TOTAL EXPENSES .66% .69% .71%
EXPENSES BEFORE OFFSETS .66% .67% .66%
NET EXPENSES .65% .65% .65%
NET ASSETS, ENDING (IN THOUSANDS) $427,945 $437,575 $321,001
YEARS ENDED
DECEMBER 31, DECEMBER 31,
1996 1995
NET ASSET VALUE, BEGINNING $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .031 .037
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.031) (.037)
NET ASSET VALUE, ENDING $1.00 $1.00
TOTAL RETURN 3.17% 3.78%*
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME 3.14% 3.69%
TOTAL EXPENSES .72% .76%
EXPENSES BEFORE OFFSETS .69% .76%
NET EXPENSES .68% .75%
NET ASSETS, ENDING (IN THOUSANDS) $346,008 $300,351
* 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.
<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
WWW.CALVERT.COM
PRINCIPAL UNDERWRITER
CALVERT DISTRIBUTORS, INC.
4550 MONTGOMERY AVENUE
SUITE 1000 NORTH
BETHESDA, MARYLAND 20814
CALVERT GROUP'S
FAMILY OF FUNDS
TAX-EXEMPT MONEY MARKET FUNDS
CTFR MONEY MARKET PORTFOLIO
CTFR CALIFORNIA MONEY MARKET PORTFOLIO
TAXABLE MONEY MARKET FUNDS
FIRST GOVERNMENT MONEY MARKET FUND
CSIF MONEY MARKET PORTFOLIO
BALANCED FUND
CSIF BALANCED PORTFOLIO
MUNICIPAL FUNDS
CTFR LIMITED-TERM PORTFOLIO
CTFR LONG-TERM PORTFOLIO
CTFR VERMONT MUNICIPAL PORTFOLIO
NATIONAL MUNI. INTERMEDIATE PORTFOLIO
CALIFORNIA MUNI. INTERMEDIATE PORTFOLIO
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>
DECEMBER 31, 1999
ANNUAL
REPORT
CALVERT TAX-FREE RESERVES
<PAGE>
CONTENTS
PRESIDENT'S LETTER
1
PORTFOLIO
MANAGER REMARKS
2
REPORT OF INDEPENDENT ACCOUNTANTS
8
STATEMENT OF
NET ASSETS
9
STATEMENTS OF OPERATIONS
25
STATEMENTS OF CHANGES IN NET ASSETS
26
NOTES TO
FINANCIAL STATEMENTS
30
FINANCIAL HIGHLIGHTS
34
DEAR SHAREHOLDERS:
1999 WAS A VERY CHALLENGING YEAR FOR THE U.S. BOND MARKETS. ALL SEGMENTS FROM
U.S. TREASURIES TO LONG MUNICIPALS SUFFERED IN A PERIOD OF RISING RATES. THE
YIELD CURVE HAS FLATTENED AS SHORT-TERM RATES ROSE FASTER EACH TIME THE
BENCHMARK FEDERAL FUNDS RATE ROSE.
WE HAVE BEEN WATCHFUL OF THE FED AND HAVE ANTICIPATED THE UPWARD TREND AS THEY
HIKED RATES IN JUNE, AUGUST AND NOVEMBER OF 1999. EACH TIME, THE CONSENSUS WAS
THAT THE INCREASES WERE ENOUGH, BUT AS WE NOW KNOW THE FED PROBABLY WILL
CONTINUE TO RAISE RATES INTO EARLY 2000.
THE TREND IN INTEREST RATES CONTINUES TO BE HIGHER AND WE EXPECT TO SEE SEVERAL
TIGHTENING STEPS BEING TAKEN BEFORE COMPLETING THE CURRENT CYCLE. ALTHOUGH THERE
ARE SOME SIGNS OF MODERATION IN VARIOUS SECTORS OF THE ECONOMY, WE BELIEVE THE
ECONOMY WILL NOT COOL DOWN UNTIL FURTHER RATE HIKES TAKE PLACE. SIGNS OF
POTENTIAL INFLATION ARE BEGINNING TO CREEP BACK INTO THE ECONOMIC STATISTICS AND
THESE WILL PLAY AN IMPORTANT ROLE IN THE DIRECTION OF INTEREST RATES.
OVERALL, THE ECONOMIC ENVIRONMENT IS HEALTHY ALTHOUGH MARKED WITH VOLATILITY.
INVESTOR DISCIPLINE AND THE NEED TO MAKE INFORMED DECISIONS IS AS IMPORTANT AS
EVER. AS ALWAYS, WE ENCOURAGE YOU TO MAKE DECISIONS BASED ON YOUR FINANCIAL
OBLIGATIONS AND TOLERANCE FOR RISK. YOUR FINANCIAL PROFESSIONAL CAN SUGGEST
STRATEGIES THAT CAN KEEP YOU ON TRACK TO MEET THESE OBJECTIVES.
WE APPRECIATE YOUR INVESTMENT IN CALVERT GROUP FUNDS AND LOOK FORWARD TO WORKING
WITH YOU TO ACHIEVE YOUR FINANCIAL GOALS.
SINCERELY,
BARBARA J. KRUMSIEK
PRESIDENT AND CEO
JANUARY 20, 2000
<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 WOULD YOU CHARACTERIZE THE INVESTMENT CLIMATE OVER THE PAST YEAR?
SINCE THE U.S. ECONOMY CONTINUED TO EXPAND IN 1999, THE FEDERAL RESERVE FEARED
THAT MORE GROWTH ALONG WITH UNEMPLOYMENT NEAR 4% COULD SPARK INFLATION.
THEREFORE, THE FEDERAL RESERVE RAISED THE FEDERAL FUNDS RATE THREE TIMES DURING
THE YEAR-IN JUNE, AUGUST, AND NOVEMBER. THE FEDERAL FUNDS RATE WAS RAISED IN
QUARTER-POINT INCREMENTS FROM 4.75% TO 5.50%.
WHILE STOCKS CONTINUED TO SOAR, BONDS EXPERIENCED A SEVERE BEAR MARKET THAT SAW
THE ONE-YEAR TREASURY BILL YIELD RISE FROM NEAR 4.50% UP TO 6%, AND THE 30-YEAR
LONG BOND YIELD RISE FROM 5% UP TO 6.5%. THE MUNICIPAL MARKET ALSO DID POORLY AS
THE EFFECTS FROM THE THREE FED RATE HIKES WERE COMPOUNDED BY INVESTOR
REDEMPTIONS FROM BOND FUNDS. THE ONLY SAFE HAVEN IN THE MUNICIPAL MARKET WAS IN
THE VERY SHORT END OF THE MATURITY SPECTRUM.
WHAT WAS YOUR STRATEGY DURING THIS PERIOD?
THE LACK OF SUPPLY OF NEW ISSUES IN THE MARKET KEPT TAX-FREE RATES LOW DURING
MOST OF THE YEAR. THERE WERE TIMES, HOWEVER, WHEN TECHNICAL FACTORS CAUSED
SHORT-TERM RATES TO SPIKE IN RELATION TO TAXABLE RATES, AND AT THESE TIMES WE
ATTEMPTED TO EXTEND THE AVERAGE MATURITY OF THE FUND. THESE RATE INCREASES
USUALLY OCCUR AT TAX TIME, TOWARD THE END OF SUMMER WHEN NOTE ISSUANCE PEAKS,
AND AT THE END OF THE YEAR. IN 1999, WE LENGTHENED THE AVERAGE MATURITY OF THE
FUND IN APRIL AND AT THE END OF THE SUMMER WHEN HIGHER RATES COULD BE FOUND.
HOWEVER, THE END OF THE YEAR SURGE IN RATES ONLY APPLIED TO THE SHORTEST
MATURITY ISSUES. WE WERE NOT BEING COMPENSATED FOR EXTENDING BEYOND FEBRUARY
2000, IN LIGHT OF THE MARKET'S GENERAL PERCEPTION THAT THE FEDERAL RESERVE WOULD
SOON RESUME RAISING RATES.
HOW DID THE FUND PERFORM?
THE MONEY MARKET PORTFOLIO'S CLASS O SHARES TOTAL RETURN FOR THE YEAR ENDING
DECEMBER 31, 1999 WAS 3.04%. THIS WAS ABOVE THE 2.68% TOTAL RETURN FOR THE
AVERAGE TAX-EXEMPT MONEY MARKET FUND TRACKED BY LIPPER ANALYTICAL SERVICES, INC.
WHAT IS YOUR OUTLOOK?
WE FEEL THE FEDERAL RESERVE WILL LIKELY RAISE RATES AGAIN IN THE COMING MONTHS
IN ORDER TO PREVENT INFLATION FROM GAINING A FOOTHOLD. ADDITIONALLY, SINCE
TAX-FREE MONEY MARKET RATES TEND TO BE LOWER AT THE START OF THE YEAR DUE TO
MONEY FLOWING INTO THE MARKET, WE WILL BIDE OUR TIME UNTIL MUNICIPAL RATES
BECOME ATTRACTIVE RELATIVE TO TAXABLE RATES AND WE HAVE A CLEARER PICTURE OF
<PAGE>
THE FEDERAL RESERVE'S INTENTIONS. WE WILL THEN BEGIN TO CONSIDER PURCHASING
LONGER MATURITY ISSUES.
JANUARY 20, 2000
PLEASE REMEMBER, THIS DISCUSSION REFLECTS THE VIEWS AND OPINIONS OF CALVERT
ASSET MANAGEMENT COMPANY AT DECEMBER 31, 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.
PORTFOLIO
STATISTICS
WEIGHTED
AVERAGE MATURITY
12.31.99 35 DAYS
12.31.98 61 DAYS
CREDIT QUALITY
DISTRIBUTION
AS OF 12.31.99
[INSERT PIE CHART HERE]
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.
COMPARATIVE MONTH-END YIELDS
IBC'S GENERAL
CTFR PURPOSE TAX-FREE
MONEY MARKET MONEY MARKET
CLASS O AVERAGES
12.31.99 3.61% 3.23%
11.30.99 3.26% 3.00%
10.31.99 3.17% 2.81%
9.30.99 3.04% 2.80%
8.31.99 2.84% 2.58%
7.31.99 2.78% 2.50%
6.30.99 2.91% 2.67%
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 INSTITUTIONAL CLASS OR CLASS T SHARES WOULD BE DIFFERENT.
SOURCES: IBC'S MONEY FUND REPORT, IBC FINANCIAL DATA INC. AND LIPPER ANALYTICAL
SERVICES INC.
CLASS O
AVERAGE ANNUAL
TOTAL RETURN
AS OF 12.31.99
1 YEAR 3.04%
5 YEAR 3.40%
10 YEAR 3.63%
INCEPTION 4.67%
(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
WHAT WAS YOUR STRATEGY DURING THE PERIOD?
WITH LITTLE SUPPLY OF NEW ISSUES IN THE FIRST HALF OF 1999, SHORT-TERM MUNICIPAL
RATES REMAINED LOW IN RELATION TO TAXABLE RATES. SINCE TAXABLE RATES HAD BEGUN
RISING WITH THE MARKET'S PERCEPTION THAT THE FEDERAL RESERVE WOULD HIKE RATES,
WE KNEW MUNICIPAL RATES WOULD FOLLOW WHEN AMPLE SUPPLY ARRIVED. IN AUGUST, SHORT
MUNICIPAL RATES STARTED TO RISE, AND WHEN THE FED HIKED RATES THREE TIMES,
TAX-EXEMPT RATES CONTINUED TO CLIMB UNTIL YEAR-END. DURING THIS TIME, THE FUND
RECEIVED INFLOWS OF CASH FROM INVESTORS. THIS WAS IDEAL, SINCE WE HAD BEGUN
LENGTHENING THE AVERAGE MATURITY OF THE FUND AND WERE ABLE TO BUY SECURITIES AT
LOWER PRICES.
HOW DID THE FUND PERFORM?
THE FUND OUTPERFORMED ALL SHORT, INTERMEDIATE, AND LONG TERM TAX-EXEMPT FIXED
INCOME TOTAL RETURN AVERAGES IN 1999. THE FUND'S ONE YEAR TOTAL RETURN WAS
2.86%; COMPARED TO A 1.69% RETURN FOR THE AVERAGE SHORT TERM-MUNICIPAL FUND
TRACKED BY LIPPER ANALYTICAL SERVICES, INC.
COMPARATIVE INVESTMENT PERFORMANCE
CTFR LIPPER SHORT LEHMAN
LIMITED-TERM MUNICIPAL DEBT MUNICIPAL BOND
PORTFOLIO FUNDS AVERAGE INDEX TR
6 MONTH 1.49% 0.96% (1.17%)
1 YEAR 2.86% 1.69% (2.06%)
5 YEAR* 4.06% 4.32% 6.91%
10 YEAR* 4.46% 4.69% 6.89%
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
WHAT IS YOUR OUTLOOK?
WE CONTINUE TO BELIEVE THE FEDERAL RESERVE WILL RAISE RATES FURTHER AS IT TRIES
TO KEEP THE ECONOMY FROM OVERHEATING. ACCORDINGLY, WE WILL CONCENTRATE ON
KEEPING THE PORTFOLIO LIQUID SO WE CAN INVEST IN HIGHER YIELDING SECURITIES,
WHILE WATCHING FOR SIGNS THAT RATE HIKES INDEED ACCOMPLISH THE FED'S GOAL OF
SLOWING ECONOMIC GROWTH TO A SUSTAINABLE LEVEL.
JANUARY 20, 2000
PLEASE REMEMBER, THIS DISCUSSION REFLECTS THE VIEWS AND OPINIONS OF CALVERT
ASSET MANAGEMENT COMPANY AT DECEMBER 31, 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.
PORTFOLIO
STATISTICS
MONTHLY
DIVIDEND YIELD
12.31.99 3.90%
12.31.98 3.58%
30 DAY SEC YIELD
12.31.99 3.85%
12.31.98 3.07%
WEIGHTED
AVERAGE MATURITY
12.31.99 307 DAYS
12.31.98 283 DAYS
EFFECTIVE DURATION
12.31.99 311 DAYS
12.31.98 253 DAYS
CREDIT QUALITY
DISTRIBUTION
AS OF 12.31.99
[INSERT PIE CHART HERE]
AVERAGE ANNUAL
TOTAL RETURN
AS OF 12.31.99
1 YEAR 1.81%
5 YEAR 3.84%
10 YEAR 4.35%
INCEPTION 5.86%
(3.04.81)
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.
[INSERT LINE GRAPH HERE]
<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 WOULD YOU CHARACTERIZE THE INVESTMENT CLIMATE OVER THE PAST YEAR?
THE INVESTMENT CLIMATE FOR THE FIRST SIX-MONTHS WAS EXTREMELY CHALLENGING, AND
1999 WAS ONE OF THE WORST FIXED-INCOME MARKETS IN RECENT DECADES. WE POSITIONED
THE FUND NEUTRAL TO OUR BENCHMARK AS INTEREST RATES GRADUALLY ROSE. WHEN THE
FEDERAL RESERVE FINALLY RAISED RATES AT THE END OF JUNE, THE IMMEDIATE REACTION
WAS THAT THIS ACTION WOULD BE SUFFICIENT. NEW ECONOMIC DATA SHOWING AN ECONOMY
IN OVERDRIVE PROVED OTHERWISE.
WHAT WAS YOUR STRATEGY DURING THIS PERIOD?
EARLY IN THE SECOND QUARTER, WE BEGAN SHORTENING THE DURATION OF THE FUND AS IT
BECAME CLEAR THAT INTEREST RATES WERE MOVING HIGHER, AND OUR PERFORMANCE WOULD
BE HURT IN A RISING RATE ENVIRONMENT. THIS STRATEGY STARTED TO SHOW RESULTS AS
THE SUMMER APPROACHED AND RATES CONTINUED TO RISE, WITH INTERMITTENT PAUSES. AS
THE YEAR PROGRESSED, SO DID THE FUND'S GOOD FORTUNE, AS MEASURED AGAINST ITS
BENCHMARK.
HOW DID THE FUND PERFORM?
THE FUND OUTPERFORMED THE LIPPER AVERAGE BOTH AT THE SIX-MONTH MARK (-2.60% VS.
- -2.87%), AND AT YEAR'S END ON DECEMBER 31, 1999, WHEN THE FUND RETURNED -4.52%,
SLIGHTLY BETTER THAN THE LIPPER AVERAGE OF -4.63%.
COMPARATIVE INVESTMENT PERFORMANCE
CTFR LIPPER GENERAL LEHMAN
LONG-TERM MUNICIPAL DEBT MUNICIPAL BOND
PORTFOLIO FUNDS AVERAGE INDEX TR
6 MONTH (2.60%) (2.87%) (1.17%)
1 YEAR (4.52%) (4.63%) (2.06%)
5 YEAR* 5.36% 5.76% 6.91%
10 YEAR* 5.91% 6.18% 6.89%
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?
AS WE START THE YEAR 2000, WE ANTICIPATE FURTHER RATE HIKES BY THE FED. WE WILL
CONTINUE TO BE VIGILANT IN OUR APPROACH TO MANAGING THE DURATION OF THE FUND.
FOR THE NEAR TERM WE WILL MAINTAIN A DEFENSIVE POSTURE AND TRY TO GENERATE THE
MOST TAX-FREE INCOME AS POSSIBLE. WE WILL EVALUATE OUR POSITIONS WHEN WE FEEL
THAT THE FED HAS COMPLETED ITS WORK.
JANUARY 20, 2000
PLEASE REMEMBER, THIS DISCUSSION REFLECTS THE VIEWS AND OPINIONS OF CALVERT
ASSET MANAGEMENT COMPANY AT DECEMBER 31, 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.
PORTFOLIO
STATISTICS
MONTHLY
DIVIDEND YIELD
12.31.99 4.53%
12.31.98 4.58%
30 DAY SEC YIELD
12.31.99 4.68%
12.31.98 4.10%
WEIGHTED
AVERAGE MATURITY
12.31.99 15 YEARS
12.31.98 16 YEARS
EFFECTIVE DURATION
12.31.99 14.34 YEARS
12.31.98 8.75 YEARS
CREDIT QUALITY
DISTRIBUTION
AS OF 12.31.99
[INSERT PIE CHART HERE]
AVERAGE ANNUAL
TOTAL RETURN
AS OF 12.31.99
1 YEAR (8.07%)
5 YEAR 4.55%
10 YEAR 5.50%
INCEPTION 7.18%
(8.23.83)
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.
[INSERT LINE GRAPH HERE]
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE BOARD OF TRUSTEES AND SHAREHOLDERS OF CALVERT TAX-FREE RESERVES:
IN OUR OPINION, THE ACCOMPANYING STATEMENTS OF NET ASSETS AND THE RELATED
STATEMENTS OF OPERATIONS, STATEMENTS OF CHANGES IN NET ASSETS AND FINANCIAL
HIGHLIGHTS PRESENT FAIRLY, IN ALL MATERIAL RESPECTS, THE FINANCIAL POSITION OF
CALVERT TAX-FREE RESERVES MONEY MARKET, LIMITED-TERM, AND LONG-TERM PORTFOLIOS
(THREE PORTFOLIOS COMPRISING CALVERT TAX-FREE RESERVES, HEREINAFTER REFERRED TO
AS THE "FUNDS"), AT DECEMBER 31, 1999, THE RESULTS OF EACH OF THEIR OPERATIONS,
THE CHANGES IN EACH OF THEIR NET ASSETS AND THE FINANCIAL HIGHLIGHTS FOR EACH OF
THE FISCAL PERIODS PRESENTED, IN CONFORMITY WITH ACCOUNTING PRINCIPLES GENERALLY
ACCEPTED IN THE UNITED STATES. THESE FINANCIAL STATEMENTS AND FINANCIAL
HIGHLIGHTS (HEREINAFTER REFERRED TO AS "FINANCIAL STATEMENTS") ARE THE
RESPONSIBILITY OF THE FUNDS' MANAGEMENT; OUR RESPONSIBILITY IS TO EXPRESS AN
OPINION ON THESE FINANCIAL STATEMENTS BASED ON OUR AUDITS. WE CONDUCTED OUR
AUDITS OF THESE FINANCIAL STATEMENTS IN ACCORDANCE WITH AUDITING STANDARDS
GENERALLY ACCEPTED IN THE UNITED STATES, WHICH REQUIRE THAT WE PLAN AND PERFORM
THE AUDIT TO OBTAIN REASONABLE ASSURANCE ABOUT WHETHER THE FINANCIAL STATEMENTS
ARE FREE OF MATERIAL MISSTATEMENT. AN AUDIT INCLUDES EXAMINING, ON A TEST
BASIS, EVIDENCE SUPPORTING THE AMOUNTS AND DISCLOSURES IN THE FINANCIAL
STATEMENTS, ASSESSING THE ACCOUNTING PRINCIPLES USED AND SIGNIFICANT ESTIMATES
MADE BY MANAGEMENT, AND EVALUATING THE OVERALL FINANCIAL STATEMENT PRESENTATION.
WE BELIEVE THAT OUR AUDITS, WHICH INCLUDED CONFIRMATION OF SECURITIES AT
DECEMBER 31, 1999 BY CORRESPONDENCE WITH THE CUSTODIAN AND BROKERS, PROVIDE A
REASONABLE BASIS FOR THE OPINION EXPRESSED ABOVE.
PRICEWATERHOUSECOOPERS LLP
BALTIMORE, MARYLAND
FEBRUARY 11, 2000
<PAGE>
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS
DECEMBER 31, 1999
PRINCIPAL
MUNICIPAL OBLIGATIONS - 98.6% AMOUNT VALUE
ALABAMA - 2.6%
ATHENS IDA REVENUE VRDN, 7.20%, 6/1/05, LOC: TOKAI BANK, LTD.
$3,500,000 $3,500,000
CALHOUN COUNTY ECONOMIC DEVELOPMENT COUNCIL REVENUE
VRDN, 5.70%, 3/1/18, LOC: FNB BOSTON 3,900,000 3,900,000
HALEYVILLE IDA REVENUE VRDN, 5.70%, 11/1/04,
LOC: COLUMBUS BANK & TRUST 1,240,000 1,240,000
MFH REVENUE VRDN,
5.60%, 4/1/14, LOC: SOUTHTRUST BANK, AL 765,000 765,000
5.60%, 9/1/20, LOC: SOUTHTRUST BANK, AL 2,995,000 2,995,000
MOBILE SPRING HILL MEDICAL CLINIC REVENUE VRDN, 5.60%, 2/1/11,
LOC: AMSOUTH BANK 3,240,000 3,240,000
MONTGOMERY IDA REVENUE VRDN,
6.05%, 9/1/04, LOC: SOUTHTRUST BANK 2,285,000 2,285,000
5.70%, 3/1/23, LOC: SOUTHTRUST BANK 3,190,000 3,190,000
NORTHPOINT MFH REVENUE VRDN,
5.70%, 9/3/15, LOC: AMSOUTH BANK 2,055,000 2,055,000
5.60%, 7/1/18, LOC: AMSOUTH BANK 5,490,000 5,490,000
STATE IDA REVENUE VRDN,
5.70%, 11/1/14, LOC: SOUTHTRUST BANK, AL 6,295,000 6,295,000
5.70%, 1/1/15, LOC: FLEET BANK 1,175,000 1,175,000
WYNLAKES GOVERNMENT UTILITY AUTHORITY REVENUE VRDN,
6.05%, 5/1/06, LOC: AMSOUTH BANK 4,000,000 4,000,000
ARIZONA - 1.8%
APACHE COUNTY IDA REVENUE VRDN, 5.45%, 12/15/18,
LOC: BANK OF NEW YORK 4,600,000 4,600,000
PINAL COUNTY IDA REVENUE VRDN, 5.50%, 12/1/05,
LOC: INDUSTRIAL BANK OF JAPAN 10,000,000 10,000,000
PRESCOTT IDA REVENUE VRDN, 4.60%, 12/1/14,
GA: HOUSEHOLD FINANCE CORP. 8,000,000 8,000,000
SANTA CRUZ IDA REVENUE VRDN, 4.30%, 3/16/00
5,000,000 5,000,000
ARKANSAS - 0.9%
ARKADELPHIA IDA REVENUE VRDN, 5.55%, 4/1/11,
LOC: DEN DANSKE BANK 4,000,000 4,000,000
GREENE COUNTY IDA REVENUE VRDN, 5.70%, 8/1/09
4,200,000 4,200,000
WARREN SOLID WASTE DISPOSAL REVENUE VRDN, 5.50%, 4/1/12,
LOC: FNB CHICAGO 5,150,000 5,150,000
CALIFORNIA - 5.1%
INLAND VALLEY DEVELOPMENT AGENCY TAX ALLOCATION VRDN,
3.20%, 3/1/27, C/LOC: CAL STERS, LOC: UNION BANK, CALIFORNIA.
34,485,000 34,485,000
LOS ANGELES COUNTY REDEVELOPMENT AGENCY MFH REVENUE
VRDN, 5.80%, 12/1/05, LOC: INDUSTRIAL BANK OF JAPAN
1,995,000 1,995,000
STATE PUBLIC CAPITAL IMPORTS FINANCING AUTHORITY REVENUE VRDN,
5.75%, 3/1/18, BPA: BANK OF NEW YORK, MBIA INSURED
43,860,000 43,860,000
<PAGE>
PRINCIPAL
MUNICIPAL OBLIGATIONS - CONT'D AMOUNT VALUE
COLORADO - 2.0%
BOULDER COUNTY MFH REVENUE VRDN, 5.80%, 12/25/31,
LOC: CHASE MANHATTAN $8,564,000 $8,564,000
CENTRAL CITY MFH REVENUE VRDN, 5.80%, 12/25/30,
LOC: TEXAS COMMERCE BANK 3,194,000 3,194,000
FORT COLLINS MFH REVENUE VRDN,
5.80%, 11/25/30, LOC: TEXAS COMMERCE BANK 7,950,000 7,950,000
5.80%, 12/25/31, LOC: CHASE MANHATTAN 6,509,000 6,509,000
LAKEWOOD IDA REVENUE VRDN, 5.70%, 8/1/07,
LOC: WEST ONE BANK 2,070,000 2,070,000
PITKIN COUNTY IDA REVENUE VRDN, 4.75%, 4/1/16,
LOC: FNB CHICAGO 3,000,000 3,000,000
CONNECTICUT - 0.3%
CONNECTICUT STATE HEALTH AND EDUCATION FACILITIES AUTHORITY
REVENUE VRDN, 5.50%, 7/1/33 4,200,000 4,200,000
DISTRICT OF COLUMBIA - 1.5%
MUNICIPAL TRUST RECEIPTS,
6.00%, 6/1/03, LOC: CREDIT SUISSE, FSA INSURED
5,300,000 5,300,000
6.00%, 7/27/03, LOC: CREDIT SUISSE, AMBAC INSURED
10,900,000 10,900,000
6.00%, 6/1/05, LOC: CREDIT SUISSE, MBIA INSURED
7,710,000 7,710,000
FLORIDA - 2.4%
CAPITAL PROJECTS FINANCIAL AUTHORITY REVENUE VRDN,
5.45%, 8/1/17, BPA:CREDIT SUISSE, FSA INSURED
800,000 800,000
DUVAL COUNTY MFH REVENUE VRDN,
5.85%, 7/1/25, LOC: HOUSEHOLD FINANCIAL CORP.
3,950,000 3,950,000
HOUSING FINANCE AGENCY REVENUE VRDN, 5.50%, 7/1/23,
CONFIRMING LOC: COMMERZE BANK, AG, LOC: HELLER FINANCIAL
8,800,000 8,800,000
ORANGE COUNTY HEALTH FACILITIES AUTHORITY REVENUE VRDN,
5.97%, 3/27/06, LOC: CREDIT SUISSE, MBIA INSURED
2,600,000 2,600,000
5.97%, 10/1/06, LOC: CREDIT SUISSE, MBIA INSURED
6,880,000 6,880,000
5.97%, 10/1/08, LOC: CREDIT SUISSE, MBIA INSURED
4,000,000 4,000,000
SUNRISE UTILITIES SYSTEMS REVENUE VRDN, 5.50%, 10/1/15,
TOA: CITIBANK, AMBAC INSURED 6,985,000 6,985,000
VOLUSIA COUNTY MFH REVENUE VRDN, 4.90%, 9/1/05,
LOC: AMSOUTH BANK 4,000,000 4,000,000
GEORGIA - 11.4%
ATHENS MFH REVENUE VRDN, 5.375%, 8/1/05, CONFIRMING LOC:
FNB CHICAGO, LOC: FIRST BANK, NA 2,000,000 2,000,000
COLUMBUS DOWNTOWN DEVELOPMENT AUTHORITY REVENUE
VRDN, 5.70%, 8/1/15, LOC: COLUMBUS BANK & TRUST
7,625,000 7,625,000
FRANKLIN COUNTY INDUSTRIAL BUILDING AUTHORITY REVENUE VRDN,
5.7%, 1/1/07, LOC: COMERICA BANK 2,280,000 2,280,000
FULTON COUNTY SCHOOL DISTRICT EAGLE TRUST REVENUE VRDN,
3.50%, 1/1/21, TOA: CITIBANK 10,000,000 9,983,823
JACKSON COUNTY IDA REVENUE VRDN, 6.05%, 12/1/24,
LOC: BARCLAYS BANK, PLC. 2,460,000 2,460,000
<PAGE>
PRINCIPAL
MUNICIPAL OBLIGATIONS - CONT'D AMOUNT VALUE
GEORGIA - CONT'D
MUNICIPAL GAS AUTHORITY REVENUE VRDN,
6.50%, 2/1/07 LOC: ABN AMRO BANK $42,000,000 $41,996,818
6.50%, 11/1/07 LOC: BANK OF AMERICA 62,830,000 62,827,790
6.50%, 1/1/08 LOC: BANK OF AMERICA 44,700,000 44,700,000
STATE RESIDENTIAL FINANCIAL AUTHORITY REVENUE VRDN, 3.85%, 3/1/00,
TOA: CITIBANK, AMBAC INSURED 2,390,000 2,390,000
WARNER ROBINS DOWNTOWN DEVELOPMENT AUTHORITY REVENUE
VRDN, 5.70%, 9/1/34, LOC: COLUMBUS BANK & TRUST
1,300,000 1,300,000
HAWAII - 0.6%
STATE DEPARTMENT BUDGET AND FINANCE VRDN, 5.50%, 12/1/21,
LOC: UNION BANK OF CALIFORNIA 9,600,000 9,600,000
ILLINOIS - 6.2%
ARLINGTON HEIGHTS MFH REVENUE VRDN, 6.30%, 5/1/24,
LOC: HELLER FINANCIAL 4,230,000 4,230,000
CHICAGO MUNICIPAL TRUST RECEIPTS VRDN, 5.97%, 1/1/18,
LOC: CREDIT SUISSE, AMBAC INSURED 2,900,000 2,900,000
CHICAGO PARK DISTRICT TAX ANTICIPATION WARRANTS,
4.375%, 9/15/00 10,000,000 10,051,132
CITY OF AURORA, KANE, DUPAGE, WILL AND KENDALL COUNTIES
HEALTHCARE REVENUE BONDS, 5.99%, 7/1/30 7,200,000 7,200,000
EDUCATIONAL FACILITIES AUTHORITY REVENUE VRDN, 4.25%, 9/30/12,
LOC: BANK OF OHIO 2,245,000 2,245,000
ELGIN IDA REVENUE VRDN, 5.67%, 9/1/16, LOC: LASALLE BANK
3,800,000 3,800,000
FULTON IDA REVENUE VRDN, 5.7%, 4/1/12,
LOC: FIRSTAR BANK, MILWAUKEE 7,500,000 7,500,000
GALESBURG KNOX COLLEGE PROJECT REVENUE VRDN, 5.45%, 3/1/31,
LOC: LASALLE BANK 4,000,000 4,000,000
HOUSING DEVELOPMENT AUTHORITY REVENUE VRDN,
3.40%, 3/2/00, LOC: BEAR STEARNS CAPITAL MARKETS
10,520,000 10,520,000
7.15%, 2/1/24, LOC: SUMITOMO BANK, LTD. 4,890,000 4,890,000
IDA REVENUE VRDN
6.05%, 9/2/05, LOC: AMERICAN NATIONAL BANK & TRUST
1,600,000 1,600,000
5.65%, 9/1/26, LOC: FIRSTAR BANK, MILWAUKEE 2,162,500 2,162,500
5.35%, 6/1/29, LOC: HARRIS TRUST 7,500,000 7,500,000
5.60%, 5/1/32 23,325,000 23,325,000
ROCKFORD ECONOMIC DEVELOPMENT REVENUE VRDN, 4.20%, 12/1/10,
LOC: BANQUE PARIBAS 2,160,000 2,160,000
WINNEBAGO COUNTY IDA REVENUE VRDN, 5.86%, 12/1/06,
LOC: BANK OF NOVA SCOTIA 2,280,000 2,280,000
INDIANA - 1.4%
FRANKFORT ECONOMIC IDA REVENUE VRDN, 7.15%, 1/1/23,
LOC: DAI-ICHI KANGYO BANK 4,400,000 4,400,000
HEALTH FACILITIES FINANCING AUTHORITY REVENUE VRDN,
5.50%, 1/1/12, LOC: COMERICA BANK 500,000 500,000
PORTAGE INDUSTRIAL POLLUTION CONTROL REVENUE VRDN, 6.80%, 5/1/18,
LOC: BANK OF TOKYO-MITSUBISHI, LTD. 5,150,000 5,150,000
<PAGE>
PRINCIPAL
MUNICIPAL OBLIGATIONS - CONT'D AMOUNT VALUE
INDIANA - CONT'D
SHELBYVILLE IDA REVENUE VRDN, 7.15%, 9/1/06,
LOC: INDUSTRIAL BANK OF JAPAN $7,550,000 $7,550,000
SOUTH BEND MFH REVENUE VRDN, 5.80%, 10/1/09,
LOC: FHLB-INDPLS 4,360,000 4,360,000
IOWA - 0.1%
DAVENPORT IDA REVENUE VRDN, 5.85%, 12/1/06,
LOC: BANK OF NOVA SCOTIA 1,600,000 1,600,000
KENTUCKY - 2.1%
CARROLL COUNTY SOLID WASTE IDA REVENUE VRDN, 5.95%, 5/1/27,
LOC: BANCO BILBAO VIZCAYA 5,951,000 5,951,000
GLASGOW IRB VRDN, 5.775%, 6/1/20,
LOC: BANK OF TOKYO-MITSUBISHI, LTD. 4,400,000 4,400,000
HANCOCK COUNTY IDA REVENUE VRDN, 5.70%, 6/1/12,
LOC: CHASE MANHATTAN 4,340,000 4,340,000
HOPKINSVILLE IDA REVENUE VRDN, 7.15%, 4/1/04,
LOC: DAI-ICHI KANGYO BANK 8,500,000 8,500,000
STATE FINANCIAL IDA REVENUE VRDN, 5.40%, 2/1/08,
LOC: NATIONAL CITY BANK 1,000,000 1,000,000
STATE INTERLOCAL SCHOOL TRANSPORTATION ASSOCIATION TAX AND
REVENUE ANTICIPATION NOTES COPS, 4.00%, 6/30/00
8,000,000 8,017,076
LOUISIANA - 5.7%
CADDO-BOSSIER PARISHES PORT REVENUE VRDN, 5.70%, 1/1/28,
LOC: FIRST REGIONS BANK 3,930,000 3,930,000
JEFFERSON PARISH IDA REVENUE VRDN, 4.85%, 6/1/24
2,600,000 2,600,000
NEW ORLEANS AVIATION BOARD REVENUE VRDN, 5.40%, 8/5/15,
BPA: CREDIT LOCAL DE FRANCE, MBIA INSURED 15,250,000 15,250,000
NEW ORLEANS LEVEE DISTRICT REVENUE VRDN, 6.25%, 10/1/17,
LOC: FUJI BANK, LTD. 24,155,000 24,155,000
PUBLIC FACILITIES AUTHORITY REVENUE VRDN
3.60%, 3/1/00, BPA: BANK OF OHIO, AMBAC INSURED
10,000,000 9,985,886
5.50%, 12/1/00, BPA: BANQUE NATIONAL DE PARIS, MBIA INSURED
7,000,000 7,000,000
5.90%, 12/1/14, LOC: REGIONS BANK 2,660,000 2,660,000
5.60%, 9/1/28, CONF: BANK OF NEW YORK, LOC: HIBERNIA
23,000,000 23,000,000
MARYLAND - 1.1%
BALTIMORE IDA REVENUE VRDN, 5.65%, 8/1/16,
LOC: BAYERISHE LANDESBANK GIROZENTRALE 17,500,000 17,500,000
MASSACHUSETTS - 0.3%
HUDSON IDA REVENUE VRDN, 4.40%, 10/1/13, LOC: FNB BOSTON
950,000 950,000
STATE INDUSTRIAL FINANCE AUTHORITY REVENUE VRDN,
4.40%, 8/1/14, LOC: FNB BOSTON 4,200,000 4,200,000
MICHIGAN - 2.3%
SAULT SAINTE MARIE TRIBE BUILDING REVENUE VRDN, 4.36%, 6/1/03,
LOC: FIRST OF AMERICA BANK, MI 3,955,000 3,955,000
<PAGE>
PRINCIPAL
MUNICIPAL OBLIGATIONS - CONT'D AMOUNT VALUE
MICHIGAN - CONT'D
STATE HOSPITAL AUTHORITY REVENUE VRDN, 3.30%, 12/1/03,
LOC: BEAR STEARNS CAPITAL MARKETS, FSA INSURED
$11,970,000 $11,970,000
STATE STRATEGIC FUND ECONOMIC DEVELOPMENT LO REVENUE VRDN,
4.75%, 9/1/30, LOC: BARCLAYS BANK, PLC. 4,000,000 4,000,000
7.00%, 11/1/09, LOC: TOKAI BANK, LTD. 9,000,000 9,000,000
7.15%, 9/1/08, LOC: DAI-ICHI KANGYO BANK 6,800,000 6,800,000
MINNESOTA - 2.3%
CLOQUET INDUSTRIAL FACILITIES REVENUE VRDN, 5.50%, 4/1/29
6,900,000 6,900,000
COTTAGE GROVE POLLUTION CONTROL BOARD REVENUE
VRDN, 4.43%, 8/1/12 1,100,000 1,100,000
DULUTH ECONOMIC DEVELOPMENT REVENUE VRDN, 4.70%, 6/1/19,
LOC: CREDIT LOCAL DE FRANCE 8,000,000 8,000,000
HUBBARD COUNTY SOLID WASTE DISPOSAL REVENUE
VRDN, 5.50%, 8/1/14, LOC: WACHOVIA BANK & TRUST
8,000,000 8,000,000
MINNEAPOLIS COMMUNITY DEVELOPMENT AGENCY REVENUE
VRDN, 7.20%, 2/1/12, LOC: SUMITOMO BANK, LTD.
11,855,000 11,855,000
MISSISSIPPI - 0.4%
BUSINESS FINANCIAL CORP. IDA REVENUE VRDN,
5.70%, 6/1/06, LOC: FIRST UNION BANK, NC 3,675,000 3,675,000
5.70%, 6/1/07, LOC: DEPOSIT GUARANTY 1,900,000 1,900,000
MISSOURI - 1.9%
JACKSON COUNTY IDA REVENUE VRDN, 4.85%, 11/1/16,
LOC: COMMERCE BANK 2,500,000 2,500,000
KANSAS CITY AIRPORT REVENUE BONDS, 5.00%, 9/1/00, FSA INSURED
3,520,000 3,547,267
KANSAS CITY MFH REVENUE VRDN, 5.35%, 6/1/15,
LOC: HUNTINGTON NATIONAL BANK 6,505,000 6,505,000
ST. LOUIS IDA REVENUE VRDN, 7.50%, 1/1/21,
LOC: BANCA NAZIONALE DEL LAVORO 9,300,000 9,300,000
STATE IDA REVENUE VRDN, 5.70%, 9/1/08,
LOC: MORGAN GUARANTY TRUST 4,000,000 4,000,000
STATE MFH REVENUE VRDN, 5.80%, 12/25/30,
LOC: TEXAS COMMERCE BANK 4,000,000 4,000,000
NEBRASKA - 0.3%
IDA REVENUE VRDN, 7.15%, 12/1/04, LOC: SANWA BANK, LTD.
4,000,000 4,000,000
NEW HAMPSHIRE - 0.3%
STATE BUSINESS FINANCE AUTHORITY REVENUE VRDN, 5.70%, 12/1/17,
LOC: FIRSTAR BANK MILWAUKEE 5,500,000 5,500,000
NEW YORK - 7.5%
MUNICIPAL SECURITIES TRUST CERTIFICATES REVENUE VRDN,
4.00%, 6/26/11, BPA: BEAR STEARNS CAPITAL MARKETS, FGIC INSURED
35,730,000 35,730,000
3.43%, 5/11/13, BPA: BEAR STEARNS CAPITAL MARKETS, AMBAC INSURED
35,180,000 35,148,632
3.48%, 9/1/27, LOC: BEAR STEARNS CAPITAL MARKETS, FSA INSURED
10,000,000 10,000,000
NEW YORK CITY GO VRDN, 4.75%, 8/1/21, LOC: CHASE MANHATTAN
5,590,000 5,590,000
<PAGE>
PRINCIPAL
MUNICIPAL OBLIGATIONS - CONT'D AMOUNT VALUE
NEW YORK - CONT'D
NEW YORK CITY IDA REVENUE VRDN, 6.75%, 11/1/15,
LOC: INDUSTRIAL BANK OF JAPAN $28,600,000 $28,600,000
NEW YORK CITY REVENUE ANTICIPATION NOTES, 5.75%, 4/14/2000,
BPA: BANK OF NEW YORK 1,000,000 1,000,000
NEVADA - 0.2%
HENDERSON PUBLIC IMPROVEMENT TRUST REVENUE
VRDN, 5.67%, 4/1/07, LOC: BANK OF AMERICA 2,900,000 2,900,000
NORTH CAROLINA - 2.5%
PERSON COUNTY IDA & POLLUTION CONTROL FINANCE AUTHORITY REVENUE
VRDN, 5.70%, 11/1/19 25,150,000 25,150,000
STATE MUNICIPAL POWER AGENCY REVENUE VRDN, 4.00%, 2/1/00,
BPA: LANDESBANK HESSEN-TH, MBIA INSURED 13,000,000 13,000,000
NORTH DAKOTA - 0.4%
TRAILL COUNTY SOLID WASTE DISPOSAL REVENUE VRDN, 5.70%, 3/1/13
5,750,000 5,750,000
OHIO - 1.0%
CLEVELAND PUBLIC POWER SYSTEM REVENUE VRDN, 3.55%, 11/15/18,
BPA: COMMERZE BANK, AG, MBIA INSURED 4,995,000 4,995,000
PIQUA IDA REVENUE VRDN, 6.00%, 10/1/11, LOC: SANWA BANK, LTD.
5,800,000 5,800,000
STATE MFH REVENUE VRDN, 5.80%, 12/25/29, LOC: CHASE MANHATTAN
5,370,000 5,370,000
OKLAHOMA - 0.7%
HOUSING FINANCE AUTHORITY REVENUE VRDN, 5.75%, 12/1/05,
C/LOC: BINGHAMPTON SAVINGS BANK 5,900,000 5,900,000
TULSA IDA REVENUE VRDN, 4.20%, 11/1/14,
LOC: ST. JOHN'S MEDICAL CTR. 5,000,000 5,000,000
PENNSYLVANIA - 2.2%
DELAWARE COUNTY AUTHORITY REVENUE VRDN, 5.55%, 7/1/14,
LOC: PNC BANK NA 8,400,000 8,400,000
MONTGOMERY COUNTY IDA REVENUE VRDN, 5.35%, 12/1/13,
LOC: PNC BANK NA 150,000 150,000
MUNICIPAL SECURITIES TRUST CERTIFICATES REVENUE VRDN, 3.50%, 2/1/03,
BPA: BEAR STEARNS CAPITAL MARKETS, AMBAC INSURED
10,725,000 10,725,000
PHILADELPHIA MFH REDEVELOPMENT AUTHORITY REVENUE VRDN,
5.80%, 12/1/09, LOC: HONG KONG SHANGHAI BANK
2,950,000 2,950,000
STATE HIGHER EDUCATION FACILITIES AUTHORITY REVENUE VRDN,
5.50%, 1/1/26, LOC: BAYERISHE LANDESBANK GIROZENTRALE,
BPA: MORGAN GUARANTY TRUST 10,000,000 10,000,000
WEST CORNWALL TOWNSHIP MUNICIPAL AUTHORITY REVENUE VRDN,
5.50%, 3/1/16, LOC: CORESTATES 1,710,000 1,710,000
SOUTH CAROLINA - 1.0%
DORCHESTER COUNTY IDA REVENUE VRDN, 4.80%, 10/1/24,
LOC: BAYERISCHE VEREINSBANK 5,100,000 5,100,000
<PAGE>
PRINCIPAL
MUNICIPAL OBLIGATIONS - CONT'D AMOUNT VALUE
SOUTH CAROLINA - CONT'D
ORANGEBURG IDA REVENUE VRDN, 4.40%, 6/1/08, LOC: FNB BOSTON
$3,900,000 $3,900,000
STATE MFH AUTHORITY REVENUE VRDN, 5.60%, 7/1/07,
SURBD: CONTINENTAL CASUALTY CO. 6,000,000 6,000,000
TENNESSEE - 6.8%
COFFEE COUNTY IDA REVENUE VRDN,
6.75%, 12/1/01, LOC: ASAHI BANK 9,000,000 9,000,000
5.80%, 5/1/12, LOC: NATIONSBANK 4,720,000 4,720,000
KNOX COUNTY HEALTH EDUCATIONAL AND MFH BOARD REVENUE
VRDN, 5.15%, 12/1/29, LOC: FIRST TENNESSEE BANK
4,500,000 4,500,000
MEMPHIS-SHELBY COUNTY IDA REVENUE VRDN, 5.55%, 3/1/24,
LOC: NATIONAL BANK OF COMMERCE, TN 6,000,000 6,000,000
SEVIER COUNTY PUBLIC BUILDING AUTHORITY REVENUE VRDN,
5.50%, 6/1/14, BPA: LANDESBANK HESSEN-TH, AMBAC INSURED
3,000,000 3,000,000
5.50%, 6/1/18, BPA: LANDESBANK HESSEN-TH, AMBAC INSURED
7,000,000 7,000,000
5.50%, 6/1/19, BPA: LANDESBANK HESSEN-TH, AMBAC INSURED
3,000,000 3,000,000
5.50%, 6/1/19, BPA: KREDIETBANK, AMBAC INSURED
4,200,000 4,200,000
5.50%, 6/1/19, BPA: BAYERISHE LANDESBANK GIROZENTRALE,
AMBAC INSURED 10,000,000 10,000,000
5.50%, 6/1/20, BPA: LANDESBANK HESSEN-TH, AMBAC INSURED
10,000,000 10,000,000
5.50%, 6/1/21, BPA: LANDESBANK HESSEN-TH, AMBAC INSURED
5,000,000 5,000,000
5.50%, 6/1/23, BPA: CREDIT SUISSE, AMBAC INSURED
10,400,000 10,400,000
SHELBY COUNTY HEALTH EDUCATIONAL AND HOUSING FACILITIES BOARD
REVENUE VRDN, 5.55%, 7/1/22, LOC: BANK OF AMERICA
5,000,000 5,000,000
SUMNER COUNTY HEALTH EDUCATIONAL & HOUSING BOARD REVENUE
VRDN, 5.61%, 6/1/29, BPA: TRANSAMERICA LIFE 10,000,000 10,000,000
TENNENERGY CORP. GAS REVENUE BONDS, 4.00%, 6/1/00,
MBIA INSURED 14,035,000 14,071,678
TEXAS - 2.7%
AUSTIN UTILITIES REVENUE VRDN, 3.30%, 12/1/04,
LOC: BEAR STEARNS CAPITAL MARKETS, MBIA INSURED
23,265,000 23,265,000
BEXAR COUNTY MFH REVENUE VRDN, 6.26%, 5/1/30,
LOC: HELLER FINANCIAL 3,710,000 3,710,000
CLEBURNE IDA REVENUE VRDN, 5.75%, 2/1/04,
LOC: NATIONAL CITY BANK 1,550,000 1,550,000
GRAND PRAIRIE IDA REVENUE VRDN, 4.25%, 12/1/06,
LOC: PNC BANK, N.A. 1,000,000 1,000,000
HARRIS COUNTY IDA REVENUE VRDN,
7.15%, 8/1/01, LOC: BANK OF TOKYO-MITSUBISHI, LTD.
4,700,000 4,700,000
7.15%, 8/1/01, LOC: SAKURA BANK, LTD. 1,500,000 1,500,000
HARRIS COUNTY MFH REVENUE VRDN, 6.26%, 6/1/30,
LOC: HELLER FINANCIAL 5,500,000 5,500,000
UTAH - 2.2%
MUNICIPAL SECURITIES TRUST CERTIFICATES REVENUE VRDN, 3.70%, 5/6/13,
LOC: BEAR STEARNS CAPITAL MARKETS, AMBAC INSURED
34,415,000 34,415,000
<PAGE>
PRINCIPAL
MUNICIPAL OBLIGATIONS - CONT'D AMOUNT VALUE
VERMONT - 1.1%
VERMONT STUDENT ASSISTANCE CORP. EDUCATION LOAN REVENUE BONDS,
4.50%, 12/15/00 $17,520,000 $17,520,000
VIRGINIA - 2.4%
FAIRFAX COUNTY ECONOMIC DEVELOPMENT AUTHORITY REVENUE
VRDN, 3.95%, 2/1/11, BPA: NATIONAL WESTMINSTER BANK
36,400,000 36,382,852
HENRICO COUNTY IDA REVENUE VRDN, 7.30%, 10/1/08,
LOC: TOKAI BANK, LTD. 1,300,000 1,300,000
WASHINGTON - 1.0%
GRANT COUNTY PUBLIC UTILITIES VRDN, 6.05%, 10/1/11,
LOC: SOUTHTRUST BANK, AL 2,600,000 2,600,000
PIERCE COUNTY ECONOMIC DEVELOPMENT AUTHORITY REVENUE
VRDN, 5.50%, 6/1/30, LOC: BANK OF NOVA SCOTIA 3,000,000 3,000,000
STATE PUBLIC POWER SUPPLY SYSTEM REVENUE VRDN, 5.20%, 7/1/17,
LOC: BANK OF AMERICA 9,685,000 9,685,000
WEST VIRGINIA - 0.3%
HARRIS COUNTY IDA REVENUE VRDN, 5.55%, 6/1/14,
LOC: SOCI T GENERALE 4,140,000 4,140,000
WISCONSIN - 1.3%
EAU CLAIRE IDA REVENUE VRDN, 5.70%, 5/1/07,
LOC: FIRSTAR BANK, MILWAUKEE 3,020,000 3,020,000
GERMANTOWN IDA REVENUE VRDN, 5.70%, 5/1/17,
LOC: FIRSTAR BANK, MILWAUKEE 1,800,000 1,800,000
GRAFTON IDA REVENUE VRDN, 5.80%, 12/1/17,
LOC: FIRSTAR BANK, MILWAUKEE 2,795,000 2,795,000
STATE HEALTH & EDUCATIONAL FACILITIES AUTHORITY REVENUE VRDN,
5.60%, 11/01/23, LOC: FIRSTAR BANK MILWAUKEE 8,200,000 8,200,000
VILLAGE OF HOWARD INDUSTRIAL DEVELOPMENT REVENUE VRDN,
5.70%, 7/1/20, LOC: FIRSTAR BANK, MILWAUKEE 4,500,000 4,500,000
<PAGE>
PRINCIPAL
MUNICIPAL OBLIGATIONS - CONT'D AMOUNT VALUE
OTHER - 12.2%
ABN AMRO CHICAGO CORP. LEASETOPS TRUST CERTIFICATES,
5.96%, 10/4/00, BPA: LASALLE BANK $17,057,049 $17,057,049
5.68%, 3/1/10, BPA: ABN AMRO BANK, MBIA INSURED
17,585,000 17,585,000
CAPITAL REALTY INVESTORS TAX EXEMPT CERTIFICATES REVENUE VRDN,
5.75%, 2/1/04, BPA: UBS, AG 48,955,000 48,955,000
5.75%, 12/1/04, BPA: UBS, AG 23,865,000 23,865,000
LEHMAN BROTHERS POOLED TRUST RECEIPTS VRDN, 5.95%, 7/1/12,
BPA: BANK OF AMERICA, LOC: INDUSTRIAL BANK OF JAPAN
19,000,000 19,000,000
MORGAN KEEGAN TRUST RECEIPTS VRDN,
5.76%, 1/13/00 9,240,000 9,240,000
5.60%, 6/1/06, BPA: NATIONAL WESTMINSTER BANK
31,596,000 31,596,000
MUNICIPAL SECURITIES TRUST VRDN, 5.85%, 3/1/18,
LOC: BEAR STEARNS CAPITAL MARKETS, FSA INSURED
14,455,000 14,455,000
PITNEY BOWES CORPORATION LEASETOPS TRUST CERTIFICATES VRDN,
5.91%, 10/10/01, BPA: PITNEY BOWES CREDIT, AMBAC INSURED
7,294,252 7,294,252
TOTAL INVESTMENTS (COST $1,530,255,855) - 98.6% 1,530,255,855
OTHER ASSETS AND LIABILITIES, NET - 1.4% 22,275,996
NET ASSETS - 100.0% $1,552,531,851
NET ASSETS CONSIST OF:
PAID IN CAPITAL APPLICABLE TO THE FOLLOWING SHARES OF BENEFICIAL INTEREST,
UNLIMITED NUMBER OF NO PAR SHARES AUTHORIZED:
CLASS O: 1,278,187,007 SHARES OUTSTANDING $1,278,074,659
INSTITUTIONAL CLASS: 237,587,793 SHARES OUTSTANDING 237,584,970
CLASS T: 37,058,165 SHARES OUTSTANDING 37,058,165
UNDISTRIBUTED NET INVESTMENT INCOME 23,269
ACCUMULATED NET REALIZED GAIN (LOSS) ON INVESTMENTS (209,212)
NET ASSETS $1,552,531,851
NET ASSET VALUE PER SHARE
CLASS O (BASED ON NET ASSETS OF $1,277,935,288) $1.00
INSTITUTIONAL CLASS (BASED ON NET ASSETS OF $237,543,856) $1.00
CLASS T (BASED ON NET ASSETS OF $37,052,707) $1.00
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
LIMITED-TERM PORTFOLIO
STATEMENT OF NET ASSETS
DECEMBER 31, 1999
PRINCIPAL
MUNICIPAL OBLIGATIONS - 101.2% AMOUNT VALUE
ALABAMA - 0.2%
MOBILE INDUSTRIAL DEVELOPMENT BUILDING REVENUE VRDN,
6.00%, 12/1/02 $1,000,000 $1,000,000
ARIZONA - 0.4%
GLENDALE COUNTY IDA REVENUE BONDS, 4.10%, 12/1/13,
LOC: DRESDNER BANK 2,150,000 2,113,923
ARKANSAS - 3.1%
SPRINGDALE IDA REVENUE VRDN, 5.25%, 10/13/00, IA: FGIC
16,500,000 16,500,000
CALIFORNIA - 11.1%
LAKE ELSINORE REDEVELOPMENT AGENCY MFH REVENUE VRDN,
5.55%, 6/15/00, BPA: NEWMAN SERVICES, INC. 4,986,800 4,986,800
SAN BERNARDINO COUNTY MFH REVENUE VRDN, 5.70%, 6/15/00,
BPA: NEWMAN FINANCIAL SERVICES, INC. 6,799,125 6,799,125
STATEWIDE COMMUNITY DEVELOPMENT AUTHORITY REVENUE VRDN,
5.65%, 6/15/00, BPA: NEWMAN FINANCIAL SERVICES, INC.
10,631,811 10,631,811
5.75%, 3/25/25, BPA: NEWMAN FINANCIAL SERVICES, INC.
34,697,000 34,636,182
WATEREUSE FINANCING AUTHORITY CALIFORNIA REVENUE VRDN,
4.65%, 5/1/28, BPA: CREDIT SUISSE, FSA INSURED
1,000,000 1,000,000
CONNECTICUT - 0.2%
STATE HEALTH AND EDUCATIONAL FACILITIES AUTHORITY REVENUE
VRDN, 5.50%, 7/1/33, GTD: YALE UNIVERSITY 1,000,000 1,000,000
DISTRICT OF COLUMBIA - 13.0%
D.C. GO BONDS,
5.50%, 6/1/01 17,910,182 17,801,084
4.25%, 6/1/02 20,019,649 19,985,400
5.10%, 6/1/02, FSA INSURED 5,130,790 5,096,249
D.C. VRDN,
5.35%, 1/5/00 4,200,000 4,200,000
6.63%, 8/15/38, FSA INSURED 21,075,000 21,075,000
FLORIDA - 3.6%
MIAMI DADE COUNTY SCHOOL BOARD CORP. BONDS, 5.00%, 8/1/01,
FSA INSURED 3,054,669 3,023,940
ORANGE COUNTY HEALTHCARE FACILITIES AUTHORITY VRDN,
4.625%, 10/27/22, ASSET GUARANTY INSURED 6,000,000 6,000,000
PALM BEACH HOUSING FINANCE AUTHORITY MALLARDS COVE REVENUE
VRDN, 5.3625%, 3/1/22, FIREMAN'S INSURANCE CO. INSURED
4,750,000 4,750,000
STATE EDUCATIONAL LOAN MARKETING CORP EDUCATIONAL LOAN REVENUE
VRDN, 4.70%, 12/1/34 4,997,954 4,997,954
<PAGE>
PRINCIPAL
MUNICIPAL OBLIGATIONS - CONT'D AMOUNT VALUE
GEORGIA - 0.7%
COLUMBUS DOWNTOWN IDA REVENUE BOND, 6.50%, 7/1/29
$3,900,000 $3,886,779
ILLINOIS - 1.9%
BERWYN GO BONDS, 7.00%, 11/15/10, MBIA INSURED
3,134,147 3,127,350
STATE DEVELOPMENT FINANCE AUTHORITY WASTE DISPOSAL REVENUE BOND,
7.125%, 1/1/01 5,100,935 5,033,450
STATE EDUCATIONAL FACILITIES AUTHORITY REVENUE BONDS, 4.75%, 9/1/00
1,775,703 1,771,274
KENTUCKY - 1.9%
CALVERT COUNTY POLLUTION CONTROL REVENUE VRDN, 6.00%, 2/1/07,
GTD: AIR PRODUCTS AND CHEMICALS, INC. 1,000,000 1,000,000
CALVERT COUNTY POLLUTION CONTROL REVENUE VRDN, 6.00%, 7/1/23,
GTD: AIR PRODUCTS AND CHEMICAL, INC. 3,000,000 3,000,000
IBERVILLE PARISH POLLUTION CONTROL REVENUE VRDN, 6.00%, 10/1/12,
GTD: AIR PRODUCTS AND CHEMICALS, INC. 6,200,000 6,200,000
MARYLAND - 3.0%
BALTIMORE REVENUE BONDS, THE ZAMOISKI COMPANY PROJECT,
6.4515%, 12/1/09 6,937,929 6,937,929
MONTGOMERY COUNTY ECONOMIC DEVELOPMENT BOND, 5.25%, 11/1/09,
LOC: ALLFIRST BANK 800,000 801,344
STATE AND LOCAL FACILITIES GO BONDS, 5.00%, 3/1/00
8,011,616 8,012,640
MASSACHUSETTS - 2.5%
STATE HEALTH AND EDUCATIONAL FACILITIES AUTHORITY REVENUE VRDN,
4.85%, 7/1/31, ASSET GUARANTY INSURED 13,000,000 13,000,000
MICHIGAN - 1.0%
HOUSING DEVELOPMENT AUTHORITY LO REVENUE BONDS,
5.00%, 10/1/11 986,049 937,789
STATE BUILDING AUTHORITY REVENUE BONDS, 4.25%, 10/15/00
3,939,954 3,921,225
STATE HOUSING DEVELOPMENT AUTHORITY REVENUE BONDS,
6.00%, 10/1/11, (ESCROWED IN U.S. TREASURY OBLIGATIONS)
270,000 270,019
MINNESOTA - 3.2%
ARDEN HILLS HOUSING AND HEALTHCARE FACILITIES REVENUE VRDN,
4.33%, 9/1/29 7,980,000 7,980,000
DULUTH ECONOMIC DEVELOPMENT AUTHORITY HEALTHCARE FACILITIES
REVENUE VRDN, 4.70%, 6/1/19, LOC: CREDIT LOCAL DE FRANCE
2,000,000 2,000,000
ST. PAUL PORT AUTHORITY REVENUE BOND, 4.40%, 7/1/12
6,785,000 6,778,419
MISSISSIPPI - 3.3%
STATE HIGHWAY REVENUE BONDS, 4.50%, 6/1/01 17,487,793 17,388,933
NEBRASKA - 0.5%
UNIVERSITY OF NEBRASKA FACILITIES CORP. REVENUE BONDS, 4.25%, 7/15/00
2,528,318 2,527,879
NEW HAMPSHIRE - 0.0%
STATE HIGHER EDUCATION & HEALTH REVENUE BONDS, 7.50%, 12/1/00,
FGIC INSURED 10,000 10,023
<PAGE>
PRINCIPAL
MUNICIPAL OBLIGATIONS - CONT'D AMOUNT VALUE
NEW JERSEY - 1.0%
STATE TURNPIKE AUTHORITY REVENUE BONDS, 5.60%, 1/1/00
$5,000,000 $5,000,000
NEW YORK - 18.9%
DORMITORY AUTHORITY REVENUE BONDS,
5.00%, 2/15/00 3,461,229 3,462,699
5.00%, 2/15/01 3,895,306 3,878,991
NASSAU COUNTY GO BONDS, 5.125%, 3/1/00, AMBAC INSURED
4,334,703 4,336,971
NEW YORK CITY GO BONDS, 4.25%, 8/1/00 9,007,848 9,004,460
NEW YORK CITY IDA REVENUE VRDN, 4.85%, 10/1/29,
ASSET GUARANTY INSURED 10,000,000 10,000,000
NEW YORK COPS REVENUE BOND, 4.75%, 2/1/00 13,914,500 13,919,314
STATE COPS REVENUE BONDS,
4.75%, 2/1/01 13,692,002 13,667,315
4.00%, 3/1/01 5,833,128 5,790,414
5.00%, 3/1/01 14,743,165 14,745,032
4.25%, 9/1/01 8,505,231 8,401,512
SYRACUSE REVENUE BONDS, 4.75%, 6/30/00 8,009,601 8,013,280
THRUWAY AUTHORITY HIGHWAY AND BRIDGE REVENUE BONDS,
4.75%, 4/1/00, AMBAC INSURED 3,679,463 3,681,027
NORTH DAKOTA - 0.9%
THREE AFFILIATED TRIBES OF THE FORT BERTHOLD RESERVATION REVENUE BOND,
6.25%, 11/1/19 5,000,000 4,966,300
OHIO - 1.9%
WATER DEVELOPMENT AUTHORITY REVENUE BOND, 4.25%, 6/1/33
9,885,159 9,822,800
PENNSYLVANIA - 2.6%
PHILADELPHIA AIRPORT REVENUE BOND, 5.25%, 6/15/00, FGIC INSURED
3,697,281 3,706,458
STATE COPS BOND, 4.85%, 7/1/06, AMBAC INSURED 9,999,900 10,000,000
SOUTH CAROLINA - 1.0%
EDUCATION ASSISTANCE REVENUE BONDS, 4.75%, 9/1/01
5,419,213 5,383,815
TENNESSEE - 0.9%
KNOXVILLE COUNTY HEALTH EDUCATIONAL HOSPITAL FACILITY REVENUE BONDS,
7.00%, 1/1/15, MBIA INSURED 4,539,000 4,539,000
TEXAS - 6.7%
BRAZOS RIVER AUTHORITY REVENUE BONDS, 4.15%, 6/1/30
35,000,000 34,922,300
VERMONT - 4.7%
STUDENT ASSISTANCE CORP. PROMISSORY NOTES,
4.10%, 12/15/00 10,855,000 10,815,488
4.55%, 12/15/00 11,830,000 11,814,147
6.50%, 6/15/00, AMBAC INSURED 2,018,791 2,018,340
VIRGIN ISLANDS - 0.2%
VIRGIN ISLANDS PUBLIC FINANCE AUTHORITY REVENUE BONDS, 5.00%, 10/1/00
1,003,143 1,004,270
<PAGE>
PRINCIPAL
MUNICIPAL OBLIGATIONS - CONT'D AMOUNT VALUE
VIRGINIA - 0.1%
HENRICO COUNTY IDA REVENUE VRDN, 7.30%, 10/1/08 $400,000 $400,000
WASHINGTON - 1.4%
PORT LONGVIEW IDA REVENUE VRDN, 5.50%, 12/1/19,
GTD: WEYERHAEUSER 4,420,000 4,420,000
PUBLIC POWER SUPPLY REVENUE BONDS, SERIES A,
7.30%, 7/1/00 3,043,489 3,044,490
WISCONSIN - 4.6%
STATE HOUSING AND ECONOMIC DEVELOPMENT HOME OWNERSHIP REVENUE
BONDS, 3.95% 12/1/00 10,000,000 9,979,300
DE PERE IDA REVENUE VRDN, 4.20%, 6/1/29 10,000,000 10,000,000
STATE GO BONDS, 5.10%, 5/1/01 4,077,268 4,026,880
WYOMING - 2.4%
ALBANY COUNTY POLLUTION CONTROL REVENUE VRDN, 5.10%, 12/1/15
4,100,000 4,100,000
HOUSING DEVELOPMENT REVENUE BONDS, 3.75%, 6/1/01
8,600,000 8,526,126
OTHER - 4.3%
FORT MOJAVE INDIAN TRIBE OF ARIZONA, CALIFORNIA AND NEVADA PUBLIC
FACILITIES COMBINED LO AND REVENUE BONDS ADJUSTABLE RATE AND
TENDER SERIES A OF 1993, 11.50%,12/1/18 3,640,180 3,640,180
COMMONWEALTH HIGHWAY AND TRANSPORTATION AUTHORITY
REVENUE BONDS, 4.25%, 7/1/00 12,506,954 12,500,991
COMMONWEALTH HIGHWAY AND TRANSPORTATION AUTHORITY REVENUE VRDN,
4.80%, 1/10/00 2,850,000 2,850,000
4.80%, 7/1/10 3,500,000 3,500,000
TOTAL INVESTMENTS (COST $531,211,979) - 101.2% 530,064,421
OTHER ASSETS AND LIABILITIES, NET - (1.2%) (6,321,358)
NET ASSETS - 100.0% $523,743,063
NET ASSETS CONSIST OF:
PAID IN CAPITAL APPLICABLE TO 49,237,156 SHARES OF BENEFICIAL INTEREST,
UNLIMITED NUMBER OF NO PAR SHARES AUTHORIZED: $525,073,251
UNDISTRIBUTED NET INVESTMENT INCOME 69,352
ACCUMULATED REALIZED GAIN (LOSS) ON INVESTMENTS (251,982)
NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS
(1,147,558)
NET ASSETS $523,743,063
NET ASSET VALUE PER SHARE $10.64
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
LONG-TERM PORTFOLIO
STATEMENT OF NET ASSETS
DECEMBER 31, 1999
PRINCIPAL
MUNICIPAL OBLIGATIONS - 98.6% AMOUNT VALUE
ARIZONA - 4.2%
MARICOPA COUNTY SCHOOL DISTRICT 69 GO BONDS, 6.25%, 7/1/14,
FSA INSURED $2,000,000 $2,136,140
CALIFORNIA - 7.7%
LOS ANGELES UNIFIED SCHOOL DISTRICT GO BONDS, 6.00%, 7/1/15,
FGIC INSURED 1,000,000 1,040,030
CALIFORNIA STATEWIDE COMMUNITY DEVELPOMENT AUTHORITY,
5.75%, 3/25/25, BPA OTHER 2,000,000 1,997,600
SACRAMENTO COUNTY FINANCIAL AUTHORITY, 5.00%, 12/1/16
1,000,000 904,450
FLORIDA - 8.2%
DADE COUNTY GO BONDS, 7.75%, 10/1/18, AMBAC INSURED
2,000,000 2,425,060
DADE COUNTY IDA REVENUE BONDS, 8.00%, 6/1/22 1,700,000 1,783,130
GEORGIA - 17.6%
ATLANTA WATER AND WASTEWATER REVENUE BONDS, 5.50%, 11/1/22,
FGIC INSURED 2,000,000 1,895,380
GO BONDS, 5.00%, 7/1/16 2,000,000 1,849,540
GEORGIA MUNI GAS AUTHORITY AND GAS REVENUE VRDN, 4.25%,
11/1/07, LOC: BANK OF AMERICA 5,240,000 5,239,633
HAWAII - 0.4%
HAWAII STATE EPARTMENT BUDGET AND FINANCE VRDN, 3.40%, 12/1/21,
LOC: UNION BANK CALIFORNIA 200,000 200,000
ILLINOIS - 5.8%
HOUSING DEVELOPMENT AUTHORITY VRDN, 4.25%, 2/1/24,
LOC: SUMITOMO BANK LIMITED 2,985,000 2,985,000
INDIANA - 0.9%
SHELBYVILLE INDIANA ECONOMIC DEVELOPMENT VRDN, 5.53%, 9/1/06,
LOC: INDUSTRIAL BANK JAPAN 450,000 450,000
LOUISIANA - 3.3%
PUBLIC FACILITY AUTHORITY MFH REVENUE BONDS, 7.00%, 6/1/24
1,645,000 1,691,619
MARYLAND - 4.4%
CAMBRIDGE ECONOMIC DEVELOPMENT REVENUE BONDS, 8.50%, 4/1/14
2,100,000 2,253,468
MASSACHUSETTS - 6.5%
GO BONDS, 5.25%, 8/1/18 2,000,000 1,843,740
WATER RESOURCE AUTHORITY REVENUE BONDS, 5.50%, 8/1/15, FSA INSURED
1,500,000 1,473,765
MICHIGAN - 1.9%
STATE TRUNK LINE REVENUE BONDS, 5.50%, 11/1/18
1,000,000 955,890
<PAGE>
PRINCIPAL
MUNICIPAL OBLIGATIONS - CONT'D AMOUNT VALUE
NEW YORK - 10.5%
NEW YORK AND NEW JERSEY PORT AUTHORITY, CONSOLIDATED
REVENUE BONDS, 6.125%, 6/1/94 $2,500,000 $2,542,850
NEW YORK UTGO, 5.12%, 8/1/14, FGIC INSURED 1,100,000 1,025,486
NEW YORK STATE ENERGY RESOURCES AND DEVELOPMENT AUTHORITY,
5.15%, 3/1/16, MBIA INSURED 2,000,000 1,813,900
NORTH CAROLINA - 3.3%
COMMUNITY HEALTH CARE FACILITY-DUKE UNIVERSITY, 4.75%, 6/1/21
1,000,000 809,030
EASTERN MUNICIPLE POWER AGENCY REVENUE BONDS, 4.50%, 1/1/24
1,040,000 856,326
OHIO - 4.1%
CUYAHOGA COUNTY HOSPITAL REVENUE BOND,6.25%, 8/15/10,
MBIA INSURED 2,000,000 2,094,600
RHODE ISLAND - 1.1%
PORT AUTHORITY & ECONOMIC DEVELOPMENT CORP. AIRPORT
REVENUE BONDS, SERIES A, 7.00%, 7/1/14, FSA INSURED
500,000 561,210
TAXES - 3.9%
TARRANT COUNTY HEALTH FACILITIES DEVELOPMENT CORP. REVENUE BONDS,
TAXES HEALTH RESOURCES, 5.75%, 2/15/15, MBIA INSURED
2,000,000 1,993,860
VERMONT - 3.2%
EDUCATION & HEALTH BUILDINGS FINANCING AGENCY REVENUE BONDS,
5.00%, 11/1/38, 2,000,000 1,626,680
VIRGINIA - 5.3%
FAIRFAX COUNTY WATER AUTHORITY REVENUE BONDS, 5.00%, 4/1/21
1,500,000 1,317,780
CHESAPEAKE BAY BRIDGES AND TUNNEL, 5.50%, 7/1/25, MBIA INSURED
1,500,000 1,411,995
WASHINGTON - 4.4%
CENTRAL PUGET SOUND REGIONAL TRANSPORTATION AUTHORITY, 5.25%, 2/1/21,
FGIC INSURED 2,500,000 2,263,375
OTHER - 1.9%
VIRGIN ISLANDS PUBLIC FINANCE AUTHORITY REVENUE BOND, 6.37%, 10/1/19
1,000,000 981,720
TOTAL INVESTMENTS (COST $52,482,567) - 98.6% 50,423,257
OTHER ASSETS AND LIABILITIES, NET - 1.4% 722,603
NET ASSETS - 100.0% $51,145,860
<PAGE>
NET ASSETS CONSIST OF:
PAID IN CAPITAL APPLICABLE TO THE FOLLOWING 3,343,530 SHARES OF
BENEFICIAL INTEREST, UNLIMITED NUMBER OF NO PAR VALUE SHARES
AUTHORIZED: $53,981,882
UNDISTRIBUTED NET INVESTMENT INCOME 8,673
ACCUMULATED NET REALIZED GAIN (LOSS) ON INVESTMENTS (785,385)
NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS
(2,059,310)
NET ASSETS $51,145,860
NET ASSET VALUE PER SHARE $15.30
EXPLANATION OF GUARANTEES:
BPA: BOND-PURCHASE AGREEMENT LOC: LETTER OF CREDIT
C/LOC: COLLATERALIZED LOC SURBD: SURETY BOND
GA: GUARANTY AGREEMENT TOA: TENDER OPTION AGREEMENT\
GTD: GUARANTEED
ABBREVIATIONS:
COPS: CERTIFICATES OF PARTICIPATION LO: LIMITED OBLIGATION
FSA: FINANCIAL SECURITY ADVISOR MBIA: MUNICIPAL BOND INSURANCE ASSOCIATION
GO: GENERAL OBLIGATION MFH: MULTI-FAMILY HOUSING
IDA: INDUSTRIAL DEVELOPMENT AUTHORITY UTGO: UNLIMITED TAX GENERAL OBLIGATION
IRB: INDUSTRIAL BUILDING AUTHORITY VRDN: VARIABLE RATE DEMAND NOTES
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
YEAR ENDED DECEMBER 31, 1999
MONEY MARKET LIMITED-TERM LONG-TERM
NET INVESTMENT INCOME PORTFOLIO PORTFOLIO PORTFOLIO
INVESTMENT INCOME:
INTEREST INCOME $60,083,701 $23,211,441 $2,916,616
EXPENSES:
INVESTMENT ADVISORY FEE 3,241,132 3,285,530 337,132
TRANSFER AGENCY FEES AND EXPENSES
1,928,555 318,220 36,103
DISTRIBUTION PLAN EXPENSES:
CLASS A - - 50,570
CLASS T 52,259 - -
TRUSTEES' FEES AND EXPENSES 153,867 51,758 5,137
ADMINISTRATIVE FEES:
CLASS O 3,487,416 - -
CLASS A - 40,553 2,017
INSTITUTIONAL CLASS 149,269 - -
CLASS T 54,349 - -
ACCOUNTING FEES 76,312 62,813 16,693
CUSTODIAN FEES 141,957 60,545 12,276
REGISTRATION FEES 51,802 30,471 18,049
REPORTS TO SHAREHOLDERS 270,808 50,218 7,256
PROFESSIONAL FEES 59,610 20,252 2,070
MISCELLANEOUS 196,525 35,536 4,673
TOTAL EXPENSES 9,863,861 3,955,896 491,976
FEES PAID INDIRECTLY (212,427) (72,762) (18,015)
NET EXPENSES 9,651,434 3,883,134 473,961
NET INVESTMENT INCOME 50,432,267 19,328,307 2,442,655
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS
NET REALIZED GAIN (LOSS) ON INVESTMENTS
(266,565) (270,725) (786,588)
CHANGE IN UNREALIZED APPRECIATION OR (DEPRECIATION)
- (3,679,858) (4,280,900)
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS (266,565) (3,950,583) (5,067,488)
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $50,165,702 $15,377,724 ($2,624,833)
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
MONEY MARKET PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
INCREASE (DECREASE) IN NET ASSETS 1999 1998
OPERATIONS:
NET INVESTMENT INCOME $50,432,267 $50,552,253
NET REALIZED GAIN (LOSS) (266,565) 203,276
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 50,165,702 50,755,529
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME:
CLASS O SHARES (39,960,319) (44,484,980)
INSTITUTIONAL CLASS SHARES (10,044,850) (6,074,676)
CLASS T SHARES (605,836) -
TOTAL DISTRIBUTIONS (50,611,005) (50,559,656)
CAPITAL SHARE TRANSACTIONS:
SHARES SOLD:
CLASS O SHARES 1,654,910,623 1,893,035,372
INSTITUTIONAL CLASS SHARES 3,266,828,573 2,253,311,523
CLASS T SHARES 82,654,106 -
REINVESTMENT OF DISTRIBUTIONS:
CLASS O SHARES 39,057,337 43,565,798
INSTITUTIONAL CLASS SHARES 5,350,278 3,808,687
CLASS T SHARES 600,876
SHARES REDEEMED:
CLASS O SHARES (1,770,984,377) (1,986,801,809)
INSTITUTIONAL CLASS SHARES (3,281,531,974) (2,061,263,513)
CLASS T SHARES (46,196,817) -
TOTAL CAPITAL SHARE TRANSACTIONS (49,311,375) 145,656,058
TOTAL INCREASE (DECREASE) IN NET ASSETS
(49,756,678) 145,851,931
NET ASSETS
BEGINNING OF YEAR 1,602,288,529 1,456,436,598
END OF YEAR (INCLUDING UNDISTRIBUTED NET INVESTMENT
INCOME OF $23,269 AND $259,360, RESPECTIVELY)
$1,552,531,851 $1,602,288,529
<PAGE>
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
CAPITAL SHARE ACTIVITY 1999 1998
SHARES SOLD:
CLASS O SHARES 1,654,910,623 1,893,035,372
INSTITUTIONAL CLASS SHARES 3,266,828,573 2,253,311,523
CLASS T SHARES 82,654,106 -
REINVESTMENT OF DISTRIBUTIONS:
CLASS O SHARES 39,057,337 43,565,798
INSTITUTIONAL CLASS SHARES 5,350,278 3,808,687
CLASS T SHARES 600,876 -
SHARES REDEEMED:
CLASS O SHARES (1,770,984,377) (1,986,801,809)
INSTITUTIONAL CLASS SHARES (3,281,531,974) (2,061,263,513)
CLASS T SHARES (46,196,817) -
TOTAL CAPITAL SHARE ACTIVITY (49,311,375) 145,656,058
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
LIMITED-TERM PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
INCREASE (DECREASE) IN NET ASSETS 1999 1998
OPERATIONS:
NET INVESTMENT INCOME $19,328,307 $18,873,747
NET REALIZED GAIN (LOSS) (270,725) 190,601
CHANGE IN UNREALIZED APPRECIATION OR (DEPRECIATION)
(3,679,858) 614,093
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 15,377,724 19,678,441
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME (19,327,414) (18,875,335)
NET REALIZED GAIN ON INVESTMENTS (20,908) (73,203)
TOTAL DISTRIBUTIONS (19,348,322) (18,948,538)
CAPITAL SHARE TRANSACTIONS:
SHARES SOLD 338,338,048 321,420,461
REINVESTMENT OF DISTRIBUTIONS: 16,228,878 15,624,101
SHARES REDEEMED (374,065,345) (280,742,089)
TOTAL CAPITAL SHARE TRANSACTIONS (19,498,419) 56,302,473
TOTAL INCREASE (DECREASE) IN NET ASSETS
(23,469,017) 57,032,376
NET ASSETS
BEGINNING OF YEAR 547,212,080 490,179,704
END OF YEAR (INCLUDING UNDISTRIBUTED NET INVESTMENT
INCOME OF $69,352 AND $87,202, RESPECTIVELY)
$523,743,063 $547,212,080
CAPITAL SHARE ACTIVITY
SHARES SOLD 31,666,326 30,000,403
REINVESTMENT OF DISTRIBUTIONS 1,521,419 1,460,415
SHARES REDEEMED (35,023,392) (26,196,065)
TOTAL CAPITAL SHARE ACTIVITY (1,835,647) 5,264,753
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
LONG-TERM PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
INCREASE (DECREASE) IN NET ASSETS 1999 1998
OPERATIONS:
NET INVESTMENT INCOME $2,442,655 $2,532,798
NET REALIZED GAIN (LOSS) (786,588) 1,608,740
CHANGE IN UNREALIZED APPRECIATION OR (DEPRECIATION)
(4,280,900) (1,389,917)
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
(2,624,833) 2,751,621
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME (2,435,609) (2,569,096)
NET REALIZED GAIN ON INVESTMENTS (245,663) (1,694,387)
TOTAL DISTRIBUTIONS (2,681,272) (4,263,483)
CAPITAL SHARE TRANSACTIONS:
SHARES SOLD 8,428,904 15,227,311
REINVESTMENT OF DISTRIBUTIONS 2,272,572 3,601,187
SHARES REDEEMED (11,926,958) (10,604,794)
TOTAL CAPITAL SHARE TRANSACTIONS (1,225,482) 8,223,704
TOTAL INCREASE (DECREASE) IN NET ASSETS
(6,531,587) 6,711,842
NET ASSETS
BEGINNING OF YEAR 57,677,447 50,965,605
END OF YEAR (INCLUDING UNDISTRIBUTED NET INVESTMENT
INCOME OF $8,673 AND $4,706, RESPECTIVELY)
$51,145,860 $57,677,447
CAPITAL SHARE ACTIVITY
SHARES SOLD 509,993 884,903
REINVESTMENT OF DISTRIBUTIONS 141,172 211,682
SHARES REDEEMED (738,580) (615,866)
TOTAL CAPITAL SHARE ACTIVITY (87,415) 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.
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.
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,
<PAGE>
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
TAXABLE EARNINGS.
NOTE B - RELATED PARTY TRANSACTIONS
CALVERT ASSET MANAGEMENT COMPANY, INC. (THE "ADVISOR") IS WHOLLY-OWNED BY
CALVERT GROUP, LTD. ("CALVERT"), WHICH IS INDIRECTLY WHOLLY-OWNED BY AMERITAS
ACACIA MUTUAL HOLDING COMPANY ("AMERITAS ACACIA"). THE ADVISOR PROVIDES
INVESTMENT ADVISORY SERVICES AND PAYS THE SALARIES AND FEES OF OFFICERS AND
AFFILIATED TRUSTEES OF THE FUND. FOR ITS SERVICES, THE ADVISOR RECEIVES MONTHLY
FEES BASED ON THE FOLLOWING ANNUAL RATES OF AVERAGE DAILY NET ASSETS:
FIRST NEXT OVER
$500 MILLION $500 MILLION $1 BILLION
MONEY MARKET .25% .20% .15%
LIMITED-TERM .60% .50% .40%
LONG-TERM .60% .50% .40%
UNDER THE TERMS OF THE AGREEMENT, $457,151, $339,157, AND $33,305 WERE PAYABLE
AT YEAR END FOR MONEY MARKET, LIMITED-TERM AND LONG-TERM, RESPECTIVELY.
THE ADVISORS GROUP, INC. ("TAG"), ALSO A WHOLLY-OWNED SUBSIDARY OF AMERITAS
ACACIA, IS A BROKER-DEALER. TAG OFFERS CLASS T SHARES AS A SWEEP ACCOUNT FOR ITS
BROKERAGE CUSTOMERS.
CALVERT ADMINISTRATIVE SERVICES COMPANY, AN AFFILIATE OF THE ADVISOR, PROVIDES
ADMINISTRATIVE SERVICES TO THE FUND FOR AN ANNUAL FEE. CLASS O, CLASS 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,
$305,523 AND $3,372 WERE PAYABLE AT YEAR 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 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 $98,447 IN ADDITION TO THE COMMISSIONS CHARGED ON SALES OF
LIMITED-
<PAGE>
TERM. THE DISTRIBUTOR RECEIVED $15,336 AS ITS PORTION OF COMMISSIONS CHARGED ON
SALES OF LONG-TERM. UNDER THE TERMS OF THE AGREEMENT, $7,720 AND $3,975 WERE
PAYABLE AT YEAR 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 $1,021,033, $40,022, AND $4,452 FOR THE YEAR ENDED DECEMBER 31, 1999 FOR
MONEY MARKET, LIMITED-TERM AND LONG-TERM, RESPECTIVELY. UNDER THE TERMS OF THE
AGREEMENT, $82,810, $3,098, AND $347 WERE PAYABLE AT YEAR 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 YEAR, PURCHASES AND SALES OF INVESTMENTS, OTHER THAN SHORT-TERM
SECURITIES, WERE:
LIMITED-TERM LONG-TERM
PURCHASES $244,599,196 $35,091,450
SALES 248,109,828 38,640,767
MONEY MARKET HELD ONLY SHORT-TERM INVESTMENTS.
THE COST OF INVESTMENTS OWNED AT DECEMBER 31, 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 DECEMBER 31, 1999:
MONEY MARKET LIMITED-TERM LONG-TERM
UNREALIZED APPRECIATION - $29,476 $455,818
UNREALIZED DEPRECIATION - (1,177,034) (2,515,128)
NET - ($1,147,558) ($2,059,310)
CAPITAL LOSS CARRYFORWARDS $209,214 $120,535 $783,509
EXPIRATION DATES 2007 2007 2007
CAPITAL LOSS CARRYFORWARDS MAY BE UTILIZED TO OFFSET CURRENT AND FUTURE CAPITAL
GAINS UNTIL EXPIRATION.
PORTFOLIOS MAY SELL OR PURCHASE SECURITIES FROM OTHER PORTFOLIOS MANAGED BY THE
ADVISOR, PRIMARILY AS A CASH MANAGEMENT PRACTICE. 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 (EXCEPT FOR THE
CALVERT SOCIAL INVESTMENT FUND MANAGED INDEX AND CVS AMERITAS INDEX 500
PORTFOLIOS) AND STATE STREET BANK AND TRUST COMPANY ("THE BANK"). UNDER THE
AGREEMENT, THE BANK IS PROVIDING AN UNSECURED LINE OF CREDIT FACILITY, IN THE
AGGREGATE AMOUNT OF $50 MILLION ($25 MILLION COMMITTED AND $25 MILLION
UNCOMMITTED), TO BE ACCESSED BY THE FUNDS FOR TEMPORARY OR EMERGENCY PURPOSES
ONLY. BORROWINGS UNDER THIS FACILITY BEAR INTEREST AT THE OVERNIGHT FEDERAL
FUNDS RATE PLUS .50% PER ANNUM. A COMMITMENT FEE OF .10% PER ANNUM WILL BE
INCURRED ON THE UNUSED PORTION OF THE COMMITTED FACILITY WHICH WILL BE ALLOCATED
TO ALL PARTICIPATING FUNDS. THE FUND HAD NO LOANS OUTSTANDING PURSUANT TO THIS
LINE OF CREDIT AT DECEMBER 31, 1999.
TAX INFORMATION (UNAUDITED)
THE FUND DESIGNATES $20,027 AND $245,663 AS CAPITAL GAIN DIVIDENDS PAID FOR
LIMITED-TERM AND LONG-TERM, RESPECTIVELY, DURING THE FISCAL YEAR ENDED
DECEMBER 31, 1999.
<PAGE>
MONEY MARKET PORTFOLIO
FINANCIAL HIGHLIGHTS
YEARS ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31,
CLASS 0 SHARES 1999 1998 1997
NET ASSET VALUE, BEGINNING
$1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .030 .032 .033
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.030) (.032) (.033)
NET ASSET VALUE, ENDING $1.00 $1.00 $1.00
TOTAL RETURN 3.04% 3.22% 3.38%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME 2.97% 3.17% 3.32%
TOTAL EXPENSES .65% .65% .65%
EXPENSES BEFORE OFFSETS .65% .65% .65%
NET EXPENSES .64% .64% .64%
NET ASSETS, ENDING (IN THOUSANDS)
$1,277,935 $1,355,322 $1,405,350
YEARS ENDED
DECEMBER 31, DECEMBER 31,
CLASS O SHARES 1996 1995
NET ASSET VALUE, BEGINNING $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .033 .040
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.033) (.040)
NET ASSET VALUE, ENDING $1.00 $1.00
TOTAL RETURN 3.33% 4.02%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME 3.28% 3.93%
TOTAL EXPENSES .65% .62%
EXPENSES BEFORE OFFSETS .65% .62%
NET EXPENSES .64% .61%
NET ASSETS, ENDING (IN THOUSANDS) $1,550,731 $1,740,839
<PAGE>
MONEY MARKET PORTFOLIO
FINANCIAL HIGHLIGHTS
YEARS ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31,
INSTITUTIONAL CLASS/MMP 1999 1998 1997
NET ASSET VALUE, BEGINNING $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .033 .035 .031
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.033) (.035) (.031)
NET ASSET VALUE, ENDING $1.00 $1.00 $1.00
TOTAL RETURN 3.39% 3.58% 3.12%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME 3.36% 3.54% 3.37%
TOTAL EXPENSES .31% .30% .63%
EXPENSES BEFORE OFFSETS .31% .30% .63%
NET EXPENSES .29% .29% .62%
NET ASSETS, ENDING (IN THOUSANDS)
$237,544 $246,967 $51,087
PERIODS ENDED
DECEMBER 31, DECEMBER 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)
EXPENSES BEFORE OFFSETS 1.29% 1.35%(A)
NET EXPENSES 1.28% 1.34%(A)
NET ASSETS, ENDING (IN THOUSANDS) $33,160 $41,736
<PAGE>
MONEY MARKET PORTFOLIO
FINANCIAL HIGHLIGHTS
PERIOD ENDED
DECEMBER 31,
CLASS T SHARES 1999^^
NET ASSET VALUE, BEGINNING $1.00
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .025
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.025)
NET ASSET VALUE, ENDING $1.00
TOTAL RETURN* 2.50%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME 2.90%(A)
TOTAL EXPENSES .85%(A)
EXPENSES BEFORE OFFSETS .85%(A)
NET EXPENSES .84%(A)
NET ASSETS, ENDING (IN THOUSANDS) $37,053
<PAGE>
LIMITED-TERM PORTFOLIO
FINANCIAL HIGHLIGHTS
YEARS ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31,
1999 1998 1997
NET ASSET VALUE, BEGINNING $10.71 $10.70 $10.69
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .37 .40 .42
NET REALIZED AND UNREALIZED GAIN (LOSS)
(.07) .01 .01
TOTAL FROM INVESTMENT OPERATIONS
.30 .41 .43
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.37) (.40) (.42)
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE
(.07) .01 .01
NET ASSET VALUE, ENDING $10.64 $10.71 $10.70
TOTAL RETURN* 2.86% 3.87% 4.07%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME 3.47% 3.70% 3.91%
TOTAL EXPENSES .71% .71% .70%
EXPENSES BEFORE OFFSETS .71% .71% .70%
NET EXPENSES .70% .70% .69%
PORTFOLIO TURNOVER 78% 45% 52%
NET ASSETS, ENDING (IN THOUSANDS)
$523,743 $547,212 $490,180
YEARS ENDED
DECEMBER 31, DECEMBER 31,
1996 1995
NET ASSET VALUE, BEGINNING $10.72 $10.59
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .44 .45
NET REALIZED AND UNREALIZED GAIN (LOSS) (.03) .13
TOTAL FROM INVESTMENT OPERATIONS .41 .58
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.44) (.45)
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE (.03) .13
NET ASSET VALUE, ENDING $10.69 $10.72
TOTAL RETURN* 3.94% 5.55%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME 4.12% 4.21%
TOTAL EXPENSES .71% .71%
EXPENSES BEFORE OFFSETS .71% .71%
NET EXPENSES .70% .70%
PORTFOLIO TURNOVER 45% 33%
NET ASSETS, ENDING (IN THOUSANDS) $512,342 $457,707
<PAGE>
LONG-TERM PORTFOLIO
FINANCIAL HIGHLIGHTS
YEARS ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31,
1999 1998 1997
NET ASSET VALUE, BEGINNING
$16.81 $17.28 $16.81
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .70 .78 .87
NET REALIZED AND UNREALIZED GAIN (LOSS)
(1.44) .06 .50
TOTAL FROM INVESTMENT OPERATIONS
(.74) .84 1.37
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.70) (.80) (.87)
NET REALIZED GAINS (.07) (.51) (.03)
TOTAL DISTRIBUTIONS (.77) (1.31) (.90)
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE
(1.51) (.47) .47
NET ASSET VALUE, ENDING $15.30 $16.81 $17.28
TOTAL RETURN * (4.52%) 5.01% 8.41%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME 4.35% 4.58% 5.16%
TOTAL EXPENSES .88% .87% .87%
EXPENSES BEFORE OFFSETS .88% .87% .87%
NET EXPENSES .84% .84% .85%
PORTFOLIO TURNOVER 80% 72% 41%
NET ASSETS, ENDING (IN THOUSANDS)
$51,146 $57,677 $50,966
YEARS ENDED
DECEMBER 31, DECEMBER 31,
1996 1995
NET ASSET VALUE, BEGINNING $17.31 $15.83
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .93 .95
NET REALIZED AND UNREALIZED GAIN (LOSS) (.46) 1.53
TOTAL FROM INVESTMENTS .47 2.48
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.95) (.91)
NET REALIZED GAINS (.02) (.09)
TOTAL DISTRIBUTIONS (.97) (1.00)
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE (.50) 1.48
NET ASSET VALUE, ENDING $16.81 $17.31
TOTAL RETURN * 2.89% 16.05%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME 5.50% 5.71%
TOTAL EXPENSES .89% .87%
EXPENSES BEFORE OFFSETS .89% .87%
NET EXPENSES .86% .85%
PORTFOLIO TURNOVER 41% 58%
NET ASSETS, ENDING (IN THOUSANDS) $52,945 $57,359
(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.
^^ FROM MARCH 1, 1999 INCEPTION.
<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
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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>
DECEMBER 31, 1999
ANNUAL
REPORT
CALVERT TAX-FREE RESERVES VERMONT MUNICIPAL PORTFOLIO
<PAGE>
CONTENTS
PRESIDENT'S LETTER
1
PORTFOLIO
MANAGER REMARKS
2
REPORT OF INDEPENDENT ACCOUNTANTS
4
STATEMENT OF
NET ASSETS
5
STATEMENT OF OPERATIONS
7
STATEMENTS OF CHANGES IN NET ASSETS
8
NOTES TO
FINANCIAL STATEMENTS
9
FINANCIAL HIGHLIGHTS
12
DEAR SHAREHOLDERS:
1999 WAS A VERY CHALLENGING YEAR FOR THE U.S. BOND MARKETS. ALL SEGMENTS FROM
U.S. TREASURIES TO LONG MUNICIPALS SUFFERED IN A PERIOD OF RISING RATES. THE
YIELD CURVE HAS FLATTENED AS SHORT-TERM RATES ROSE FASTER EACH TIME THE
BENCHMARK FEDERAL FUNDS RATE ROSE.
WE HAVE BEEN WATCHFUL OF THE FED AND HAVE ANTICIPATED THE UPWARD TREND AS THEY
HIKED RATES IN JUNE, AUGUST AND NOVEMBER OF 1999. EACH TIME, THE CONSENSUS WAS
THAT THE INCREASES WERE ENOUGH, BUT AS WE NOW KNOW THE FED PROBABLY WILL
CONTINUE TO RAISE RATES INTO EARLY 2000.
THE TREND IN INTEREST RATES CONTINUES TO BE HIGHER AND WE EXPECT TO SEE SEVERAL
TIGHTENING STEPS BEING TAKEN BEFORE COMPLETING THE CURRENT CYCLE. ALTHOUGH THERE
ARE SOME SIGNS OF MODERATION IN VARIOUS SECTORS OF THE ECONOMY, WE BELIEVE THE
ECONOMY WILL NOT COOL DOWN UNTIL FURTHER RATE HIKES TAKE PLACE. SIGNS OF
POTENTIAL INFLATION ARE BEGINNING TO CREEP BACK INTO THE ECONOMIC STATISTICS AND
THESE WILL PLAY AN IMPORTANT ROLE IN THE DIRECTION OF INTEREST RATES.
OVERALL, THE ECONOMIC ENVIRONMENT IS HEALTHY ALTHOUGH MARKED WITH VOLATILITY.
INVESTOR DISCIPLINE AND THE NEED TO MAKE INFORMED DECISIONS IS AS IMPORTANT AS
EVER. AS ALWAYS, WE ENCOURAGE YOU TO MAKE DECISIONS BASED ON YOUR FINANCIAL
OBLIGATIONS AND TOLERANCE FOR RISK. YOUR FINANCIAL PROFESSIONAL CAN SUGGEST
STRATEGIES THAT CAN KEEP YOU ON TRACK TO MEET THESE OBJECTIVES.
WE APPRECIATE YOUR INVESTMENT IN CALVERT GROUP FUNDS AND LOOK FORWARD TO WORKING
WITH YOU TO ACHIEVE YOUR FINANCIAL GOALS.
SINCERELY,
BARBARA J. KRUMSIEK
PRESIDENT AND CEO
JANUARY 20, 2000
<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 WOULD YOU CHARACTERIZE THE INVESTMENT CLIMATE OVER THE PAST YEAR?
IN 1998 WE EXTENDED THE DURATION FOR THE FUND IN ANTICIPATION OF CONTINUED LOWER
MARKET RATES. WE WERE REWARDED FOR THIS STRATEGY IN 1998, BUT IN EARLY 1999 WE
WERE PUNISHED AS RATES BEGAN TO RISE AND WE WERE SLOW TO RESPOND. THIS WAS ONE
OF THE MOST CHALLENGING YEARS FOR MUNICIPAL BOND FUNDS. EACH TIME THE FEDERAL
RESERVE RAISED RATES, THE IMMEDIATE REACTION WAS THAT THE FED WAS FINISHED.
HOWEVER THE REALITY WAS THAT THEY WERE JUST GETTING WARMED UP, AS NEW ECONOMIC
DATA CONTINUED TO SHOW AN OVERHEATED ECONOMY.
IN THE SECOND HALF OF THE YEAR WE ONCE AGAIN SHORTENED THE FUND. CONTINUED
INTEREST RATE RISES TOOK ITS TOLL ON THE FUND'S PERFORMANCE IN THE FIRST HALF OF
THE YEAR, AS WE WERE SLOWLY SHORTENING OUR DURATION. IN VERMONT IT IS BECOMING
MORE CHALLENGING AS THE NUMBER OF ISSUES CONTINUES TO DWINDLE AS THE NEED FOR
DEBT DECLINES. A CHANGE IN INVESTMENT STRATEGY BECOMES THAT MUCH MORE DIFFICULT
BECAUSE OF THE LIMITED UNIVERSE OF ISSUES AVAILABLE TO IMPLEMENT STRATEGY
SHIFTS.
HOW DID THE FUND PERFORM?
WE WERE REWARDED IN THE SECOND HALF OF THE YEAR WITH PERFORMANCE THAT WAS WELL
ABOVE THE AVERAGE FOR THE LIPPER OTHER STATES CATEGORY. HOWEVER, FOR THE YEAR
(-4.29%) WE LAGGED THE AVERAGE (-3.83%), DUE LARGELY TO THE LONGER THAN AVERAGE
DURATION IN THE FIRST HALF OF THE YEAR.
COMPARATIVE INVESTMENT PERFORMANCE
CTFR LIPPER OTHER STATES LEHMAN
VERMONT MUNICIPAL MUNICIPAL DEBT MUNICIPAL BOND
PORTFOLIO FUNDS AVERAGE INDEX TR
6 MONTH (2.34%) (2.69%) (1.17%)
1 YEAR (4.29%) (3.83%) (2.06%)
5 YEAR* 5.24% 5.73% 6.91%
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>
WHAT IS YOUR OUTLOOK?
WE ANTICIPATE KEEPING THE DURATION SLIGHTLY SHORTER THAN THE AVERAGE FOR THE
NEAR FUTURE AS WE CONTINUE TO EVALUATE THE FEDERAL RESERVES' ACTION. AS NEW
ISSUES COME TO MARKET WE WILL PARTICIPATE IF THE ISSUES ARE PRICED ATTRACTIVELY,
ALL THE WHILE MAINTAINING OUR DURATION TARGETS.
JANUARY 20, 2000
PLEASE REMEMBER, THIS DISCUSSION REFLECTS THE VIEWS AND OPINIONS OF CALVERT
ASSET MANAGEMENT COMPANY AT DECEMBER 31, 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.
PORTFOLIO
STATISTICS
MONTHLY
DIVIDEND YIELD
12.31.99 4.45%
12.31.98 4.38%
30 DAY SEC YIELD
12.31.99 4.46%
12.31.98 4.12%
WEIGHTED
AVERAGE MATURITY
12.31.99 14 YEARS
12.31.98 16 YEARS
EFFECTIVE DURATION
12.31.99 6.66 YEARS
12.31.98 7.29 YEARS
CREDIT QUALITY
DISTRIBUTION
AS OF 12.31.99
[INSERT PIE CHART HERE]
AVERAGE ANNUAL
TOTAL RETURN
AS OF 12.31.99
1 YEAR (7.85%)
5 YEAR 4.44%
INCEPTION 5.18%
(4.01.91)
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.
[INSERT LINE GRAPH HERE]
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE BOARD OF TRUSTEES OF CALVERT TAX-FREE RESERVES AND SHAREHOLDERS OF
VERMONT MUNICIPAL PORTFOLIO:
IN OUR OPINION, THE ACCOMPANYING STATEMENT OF NET ASSETS AND THE RELATED
STATEMENT OF OPERATIONS, STATEMENTS OF CHANGES IN NET ASSETS AND FINANCIAL
HIGHLIGHTS PRESENT FAIRLY, IN ALL MATERIAL RESPECTS, THE FINANCIAL POSITION OF
VERMONT MUNICIPAL PORTFOLIO (ONE OF THE PORTFOLIOS COMPRISING CALVERT TAX-FREE
RESERVES, HEREINAFTER REFERRED TO AS THE "FUND"), AT DECEMBER 31, 1999, THE
RESULTS OF ITS OPERATIONS, THE CHANGES IN ITS NET ASSETS AND THE FINANCIAL
HIGHLIGHTS FOR EACH OF THE PERIODS PRESENTED, IN CONFORMITY WITH ACCOUNTING
PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES. THESE FINANCIAL STATEMENTS
AND FINANCIAL HIGHLIGHTS (HEREINAFTER REFERRED TO AS "FINANCIAL STATEMENTS") ARE
THE RESPONSIBILITY OF THE FUND'S MANAGEMENT; OUR RESPONSIBILITY IS TO EXPRESS AN
OPINION ON THESE FINANCIAL STATEMENTS BASED ON OUR AUDITS. WE CONDUCTED OUR
AUDITS OF THESE FINANCIAL STATEMENTS IN ACCORDANCE WITH AUDITING STANDARDS
GENERALLY ACCEPTED IN THE UNITED STATES, WHICH REQUIRE THAT WE PLAN AND PERFORM
THE AUDIT TO OBTAIN REASONABLE ASSURANCE ABOUT WHETHER THE FINANCIAL STATEMENTS
ARE FREE OF MATERIAL MISSTATEMENT. AN AUDIT INCLUDES EXAMINING, ON A TEST
BASIS, EVIDENCE SUPPORTING THE AMOUNTS AND DISCLOSURES IN THE FINANCIAL
STATEMENTS, ASSESSING THE ACCOUNTING PRINCIPLES USED AND SIGNIFICANT ESTIMATES
MADE BY MANAGEMENT, AND EVALUATING THE OVERALL FINANCIAL STATEMENT PRESENTATION.
WE BELIEVE THAT OUR AUDITS, WHICH INCLUDED CONFIRMATION OF SECURITIES AT
DECEMBER 31, 1999 BY CORRESPONDENCE WITH THE CUSTODIAN AND BROKERS, PROVIDE A
REASONABLE BASIS FOR THE OPINION EXPRESSED ABOVE.
PRICEWATERHOUSECOOPERS LLP
BALTIMORE, MARYLAND
FEBRUARY 11, 2000
<PAGE>
STATEMENT OF NET ASSETS
DECEMBER 31, 1999
PRINCIPAL
MUNICIPAL OBLIGATIONS - 98.1% AMOUNT VALUE
VERMONT - 76.2%
BURLINGTON ELECTRIC REVENUE BONDS, 6.375%, 7/1/10, MBIA INSURED
$3,125,000 $3,403,375
CHITTENDEN SOLID WASTE DISTRICT GO BONDS, 6.60%, 1/1/12,
ASSET GUARANTY INSURED 2,000,000 2,114,120
EDUCATION AND HEALTH REVENUE BONDS:
5.75%, 9/1/05 580,000 581,752
6.60%, 12/1/14 1,000,000 1,034,210
5.50%, 11/1/16 3,000,000 2,900,700
5.50%, 7/1/18 1,955,000 1,762,276
6.25%, 9/1/18 2,000,000 1,837,980
5.625%, 10/1/25, FSA INSURED 1,000,000 920,390
5.00%, 11/1/38 3,000,000 2,440,020
EDUCATION AND HEALTH VRDN, 5.70%, 06/1/05,
LOC: FIRST NATIONAL BANK OF BOSTON 1,985,000 1,985,000
HOUSING FINANCE AUTHORITY SINGLE FAMILY HOUSING BONDS,
7.20%, 11/1/11 575,000 571,987
IDA REVENUE BONDS, 5.75%, 1/1/09,
LOC: FIRST VERMONT BANK AND TRUST 1,200,000 1,133,628
MUNICIPAL BOND BANK REVENUE BONDS, 5.50%, 12/1/22,
AMBAC INSURED 1,000,000 931,060
RUTLAND COUNTY SOLID WASTE GO BONDS:
5.95%, 11/1/00 110,000 111,412
6.10%, 11/1/01 110,000 112,473
6.25%, 11/1/02 110,000 113,816
6.35%, 11/1/03 110,000 114,910
6.45%, 11/1/04 110,000 115,973
6.50%, 11/1/05 105,000 111,459
6.55%, 11/1/06 100,000 106,731
6.60%, 11/1/07 100,000 107,171
6.70%, 11/1/08 100,000 108,101
6.75%, 11/1/09 100,000 108,769
6.80%, 11/1/10 100,000 109,775
6.80%, 11/1/11 100,000 109,962
6.85%, 11/1/12 100,000 110,376
STATE GO BONDS:
6.30%, 1/15/06 2,500,000 2,682,200
ZERO COUPON, 8/1/08 400,000 254,032
ZERO COUPON, 8/1/09 300,000 179,532
5.00%, 1/15/11 3,000,000 2,918,100
6.45%, 2/1/12 1,950,000 2,055,982
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 2,356,950
UNIVERSITY OF VERMONT AND STATE AGRICULTURE COLLEGE REVENUE BONDS,
4.75%, 10/1/38, MBIA INSURED 2,000,000 1,549,880
TOTAL VERMONT MUNICIPAL OBLIGATIONS (COST $36,336,134) 35,404,102
<PAGE>
PRINCIPAL
MUNICIPAL OBLIGATIONS - CONT'D AMOUNT VALUE
TERRITORIES - 21.9%
GUAM ELECTRIC POWER AUTHORITY REVENUE BONDS, 5.25%, 10/1/12,
AMBAC INSURED $2,000,000 $1,972,440
PUERTO RICO GO BONDS, 6.50%, 7/1/14 1,690,000 1,837,909
PUERTO RICO HIGHWAY ELECTRIC POWER AUTHORITY VRDN, 5.30%, 7/1/22,
BPA: SOCIETE GENERALE 5,000,000 5,000,000
PUERTO RICO HIGHWAY TRANSPORTATION AUTHORITY REVENUE BONDS,
4.75%, 7/1/38 1,500,000 1,152,645
PUERTO RICO INFRASTRUCTURE FINANCING AUTHORITY REVENUE VRDN,
5.16%, 7/1/28, BPA: BANK OF AMERICA, AMBAC INSURED
200,000 200,000
TOTAL TERRITORIES MUNICIPAL OBLIGATIONS (COST $10,691,588)
10,162,994
TOTAL INVESTMENTS (COST $47,027,722) - 98.1% 45,567,096
OTHER ASSETS IN EXCESS OF LIABILITIES, NET - 1.9% 884,696
NET ASSETS - 100% $46,451,792
NET ASSETS CONSIST OF:
PAID-IN CAPITAL APPLICABLE TO 3,116,675 CLASS A SHARES OF BENEFICIAL
INTEREST, UNLIMITED NUMBER OF NO PAR SHARES AUTHORIZED: $47,877,629
UNDISTRIBUTED NET INVESTMENT INCOME 89,465
ACCUMULATED NET REALIZED GAIN (LOSS) ON INVESTMENTS (54,676)
NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS
(1,460,626)
NET ASSETS $46,451,792
NET ASSET VALUE PER SHARE $14.90
ABBREVIATIONS: EXPLANATION OF GUARANTEES:
FSA: FINANCIAL SECURITY ASSURANCE BPA: BOND-PURCHASE AGREEMENT
GO: GENERAL OBLIGATION LOC: LETTER OF CREDIT
IDA: INDUSTRIAL DEVELOPMENT AUTHORITY
MBIA: MBIA INSURANCE CORPORATION
VRDN: VARIABLE RATE DEMAND NOTES
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1999
NET INVESTMENT INCOME
INVESTMENT INCOME:
INTEREST INCOME $2,646,210
EXPENSES:
INVESTMENT ADVISORY FEE 302,238
TRANSFER AGENCY FEES AND EXPENSES 35,957
TRUSTEES' FEES AND EXPENSES 4,550
ACCOUNTING FEES 14,139
CUSTODIAN FEES 14,485
REGISTRATION FEES 5,307
REPORTS TO SHAREHOLDERS 9,231
PROFESSIONAL FEES 1,857
MISCELLANEOUS 4,748
TOTAL EXPENSES 392,512
FEES PAID INDIRECTLY (12,145)
NET EXPENSES 380,367
NET INVESTMENT INCOME 2,265,843
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
NET REALIZED GAIN (LOSS) ON INVESTMENTS (131,468)
CHANGE IN UNREALIZED APPRECIATION OR (DEPRECIATION) (4,330,532)
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS (4,462,000)
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS ($2,196,157)
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
INCREASE (DECREASE) IN NET ASSETS 1999 1998
OPERATIONS:
NET INVESTMENT INCOME $2,265,843 $2,411,657
NET REALIZED GAIN (LOSS) (131,468) 697,164
CHANGE IN UNREALIZED APPRECIATION OR (DEPRECIATION)
(4,330,532) (258,557)
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (2,196,157) 2,850,264
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME (2,247,249) (2,385,302)
NET REALIZED GAIN - (953,229)
TOTAL DISTRIBUTIONS (2,247,249) (3,338,531)
CAPITAL SHARE TRANSACTIONS:
SHARES SOLD 7,532,427 6,525,371
REINVESTMENT OF DISTRIBUTIONS 1,198,235 1,874,083
SHARES REDEEMED (9,127,861) (6,812,642)
TOTAL CAPITAL SHARE TRANSACTIONS (397,199) 1,586,812
TOTAL INCREASE (DECREASE) IN NET ASSETS
(4,840,605) 1,098,545
NET ASSETS
BEGINNING OF YEAR 51,292,397 50,193,852
END OF YEAR (INCLUDING UNDISTRIBUTED NET INVESTMENT INCOME
OF $89,465 AND $147,663, RESPECTIVELY) $46,451,792 $51,292,397
CAPITAL SHARE ACTIVITY
SHARES SOLD 474,984 397,896
REINVESTMENT OF DISTRIBUTIONS 76,713 114,634
SHARES REDEEMED (585,515) (415,155)
TOTAL CAPITAL SHARE ACTIVITY (33,818) 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 FUND IS
COMPRISED OF FIVE SEPARATE PORTFOLIOS. 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>
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 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
TAXABLE EARNINGS.
NOTE B - RELATED PARTY TRANSACTIONS
CALVERT ASSET MANAGEMENT COMPANY, INC. (THE "ADVISOR") IS WHOLLY-OWNED BY
CALVERT GROUP, LTD. ("CALVERT"), WHICH IS INDIRECTLY WHOLLY-OWNED BY AMERITAS
ACACIA MUTUAL HOLDING COMPANY. 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, $30,935 WAS PAYABLE AT YEAR 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 $31,429 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 $5,523 FOR THE YEAR ENDED DECEMBER 31, 1999. UNDER THE TERMS OF THE
AGREEMENT, $422 WAS PAYABLE AT YEAR 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 YEAR, PURCHASES AND SALES OF INVESTMENTS, OTHER THAN SHORT-TERM
SECURITIES, WERE
$9,348,010 AND $18,021,919, RESPECTIVELY.
THE COST OF INVESTMENTS OWNED AT DECEMBER 31, 1999 WAS SUBSTANTIALLY THE SAME
FOR FEDERAL INCOME TAX AND FINANCIAL REPORTING PURPOSES. NET UNREALIZED
DEPRECIATION AGGREGATED
$1,460,626, OF WHICH $621,025 RELATED TO APPRECIATED SECURITIES AND $2,081,651
RELATED TO DEPRECIATED SECURITIES.
NET REALIZED CAPITAL LOSS CARRYFORWARD FOR FEDERAL INCOME TAX PURPOSES OF
$54,676 AT DECEMBER 31, 1999 MAY BE UTILIZED TO OFFSET FUTURE CAPITAL GAINS
UNTIL EXPIRATION IN DECEMBER 2007.
<PAGE>
THE PORTFOLIO MAY SELL OR PURCHASE SECURITIES FROM OTHER PORTFOLIOS MANAGED BY
THE ADVISOR, PRIMARILY AS A CASH MANAGEMENT PRACTICE. ALL TRANSACTIONS ARE
EXECUTED AT INDEPENDENTLY DERIVED PRICES.
NOTE D - LINE OF CREDIT
A FINANCING AGREEMENT IS IN PLACE WITH ALL CALVERT GROUP FUNDS (EXCEPT FOR THE
CALVERT SOCIAL INVESTMENT FUND MANAGED INDEX AND CVS AMERITAS INDEX 500
PORTFOLIOS) AND STATE STREET BANK AND TRUST COMPANY ("THE BANK"). UNDER THE
AGREEMENT, THE BANK IS PROVIDING AN UNSECURED LINE OF CREDIT FACILITY, IN THE
AGGREGATE AMOUNT OF $50 MILLION ($25 MILLION COMMITTED AND $25 MILLION
UNCOMMITTED), TO BE ACCESSED BY THE FUNDS FOR TEMPORARY OR EMERGENCY PURPOSES
ONLY. BORROWINGS UNDER THIS FACILITY BEAR INTEREST AT THE OVERNIGHT FEDERAL
FUNDS RATE PLUS .50% PER ANNUM. A COMMITMENT FEE OF .10% PER ANNUM WILL BE
INCURRED ON THE UNUSED PORTION OF THE COMMITTED FACILITY WHICH WILL BE ALLOCATED
TO ALL PARTICIPATING FUNDS. THE FUND HAD NO LOANS OUTSTANDING PURSUANT TO THIS
LINE OF CREDIT AT DECEMBER 31,1999.
<PAGE>
FINANCIAL HIGHLIGHTS
YEARS ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31,
CLASS A SHARES 1999 1998 1997
NET ASSET VALUE, BEGINNING $16.28 $16.45 $16.33
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .71 .78 .82
NET REALIZED AND UNREALIZED GAIN (LOSS)
(1.39) .13 .26
TOTAL FROM INVESTMENT OPERATIONS
(.68) .91 1.08
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.70) (.77) (.82)
NET REALIZED GAINS - (.31) (.14)
TOTAL DISTRIBUTIONS (.70) (1.08) (.96)
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE
(1.38) (.17) .12
NET ASSET VALUE, ENDING $14.90 $16.28 $16.45
TOTAL RETURN * (4.29%) 5.67% 6.90%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME 4.50% 4.73% 5.11%
TOTAL EXPENSES .78% .75% .76%
EXPENSES BEFORE OFFSETS .78% .75% .76%
NET EXPENSES .76% .72% .73%
PORTFOLIO TURNOVER 21% 32% 14%
NET ASSETS, ENDING (IN THOUSANDS)
$46,452 $51,292 $50,194
YEARS ENDED
DECEMBER 31, DECEMBER 31,
CLASS A SHARES 1996 1995
NET ASSET VALUE, BEGINNING $16.62 $15.34
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .88 .87
NET REALIZED AND UNREALIZED GAIN (LOSS) (.25) 1.35
TOTAL FROM INVESTMENT OPERATIONS .63 2.22
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.85) (.85)
NET REALIZED GAINS (.07) (.09)
TOTAL DISTRIBUTIONS (.92) (.94)
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE (.29) 1.28
NET ASSET VALUE, ENDING $16.33 $16.62
TOTAL RETURN * 3.98% 14.86%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME 5.27% 5.35%
TOTAL EXPENSES .77% .76%
EXPENSES BEFORE OFFSETS .77% .76%
NET EXPENSES .73% .75%
PORTFOLIO TURNOVER 24% 12%
NET ASSETS, ENDING (IN THOUSANDS) $49,774 $60,203
* TOTAL RETURN DOES NOT REFLECT DEDUCTION OF CLASS A FRONT-END SALES CHARGE.
<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
WWW.CALVERT.COM
PRINCIPAL UNDERWRITER
CALVERT DISTRIBUTORS, INC.
4550 MONTGOMERY AVENUE
SUITE 1000 NORTH
BETHESDA, MARYLAND 20814
CALVERT GROUP'S
FAMILY OF FUNDS
TAX-EXEMPT MONEY MARKET FUNDS
CTFR MONEY MARKET PORTFOLIO
CTFR CALIFORNIA MONEY MARKET PORTFOLIO
TAXABLE MONEY MARKET FUNDS
FIRST GOVERNMENT MONEY MARKET FUND
CSIF MONEY MARKET PORTFOLIO
BALANCED FUND
CSIF BALANCED PORTFOLIO
MUNICIPAL FUNDS
CTFR LIMITED-TERM PORTFOLIO
CTFR LONG-TERM PORTFOLIO
CTFR VERMONT MUNICIPAL PORTFOLIO
NATIONAL MUNI. INTERMEDIATE PORTFOLIO
CALIFORNIA MUNI. INTERMEDIATE PORTFOLIO
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
