JUNE 30, 2000
SEMI-ANNUAL
REPORT
CALVERT TAX-FREE RESERVES VERMONT MUNICIPAL PORTFOLIO
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CONTENTS
PRESIDENT'S LETTER
1
PORTFOLIO
MANAGER REMARKS
2
STATEMENT OF
NET ASSETS
4
STATEMENT OF OPERATIONS
6
STATEMENTS OF CHANGES IN NET ASSETS
7
NOTES TO
FINANCIAL STATEMENTS
8
FINANCIAL HIGHLIGHTS
11
DEAR SHAREHOLDERS:
THE FIRST SIX MONTHS OF 2000 HAVE OFFERED MIXED MESSAGES ON GROWTH AND INTEREST
RATES - AND SET A TONE OF CHALLENGE FOR INVESTORS AND FUND MANAGERS. STILL,
CAUTION AND DISCIPLINE HAVE ALWAYS BEEN A KEYNOTE OF OUR MANAGER'S INVESTMENT
STRATEGIES, AND INVESTOR CONFIDENCE IS OUR GOAL WHATEVER THE ECONOMIC CLIMATE.
THE FIRST QUARTER OF THE YEAR CONTINUED MUCH AS 1999 LEFT OFF, WITH CONTINUED
ECONOMIC EXPANSION, LOW INTEREST RATES, STRONG MARKET PERFORMANCE WITHIN CERTAIN
EQUITY SECTORS, AND FLATTENED YIELD CURVES IN THE BOND MARKET AS SHORT-TERM
INTEREST RATES ROSE EACH TIME THE FEDERAL FUNDS BENCHMARK WAS RAISED.
THE SECOND QUARTER OF THE YEAR OFFERED INVESTORS A DIFFERENT PICTURE. ECONOMIC
GROWTH APPEARED TO BE SLOWING AND SOME STOCK MARKET VALUATIONS PROVED
UNSUSTAINABLE. AFTER A SERIES OF RATE INCREASES, THE FED MADE THE DECISION ON
JUNE 28TH TO LEAVE ITS FED FUND RATES UNCHANGED AT 6.5% SINCE THE ECONOMY WAS
FINALLY SLOWING.
WHETHER THE FED IS RIGHT, ONLY TIME AND KEY INDICATORS WILL TELL. CERTAINLY NO
ONE IS RULING OUT THE POSSIBILITY OF FURTHER INTERVENTION LATER IN THE YEAR IF
MORE CHECKS ON INFLATIONARY PRESSURE ARE NEEDED. IF SUCH ACTIONS PROVE
NECESSARY, THE LONG-AWAITED BOND MARKET RECOVERY COULD BE SHORT-LIVED, WITH A
RETURN TO FLATTENING YIELDS FOR THE INVESTOR. MEANWHILE, WALL STREET APPEARS
CONFIDENT THAT THE ECONOMY IS IN FOR A SOFT LANDING - WITH SLOWER GROWTH IN
CORPORATE PROFITS AND STABILIZED RETURNS ON EQUITY INVESTMENTS.
WHAT SHOULD ALL THIS SIGNAL TO THE REASONABLE INVESTOR? THAT INVESTOR DISCIPLINE
AND THE NEED TO MAKE INFORMED DECISIONS IS AS IMPORTANT AS EVER BEFORE. AS
ALWAYS, WE ENCOURAGE YOU TO MAKE DECISIONS BASED ON YOUR FINANCIAL OBLIGATIONS
AND TOLERANCE FOR RISK. YOUR FINANCIAL PROFESSIONAL CAN SUGGEST STRATEGIES THAT
CAN KEEP YOU ON TRACK TO MEET YOUR OBJECTIVES.
WE APPRECIATE YOUR INVESTMENT IN CALVERT GROUP FUNDS AND LOOK FORWARD TO WORKING
WITH YOU TO ACHIEVE YOUR FINANCIAL GOALS.
SINCERELY,
BARBARA J. KRUMSIEK
PRESIDENT AND CEO
JULY 28, 2000
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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 SIX MONTHS?
THE FIRST HALF OF THE YEAR WAS FILLED WITH UNCERTAINTY, DRIVEN BY RISING
INTEREST RATES AND SCARCITY OF SUPPLY. VERMONT HAS ALWAYS BEEN A CHALLENGE
BECAUSE OF THE LACK OF ISSUES AVAILABLE FOR THE FUND. THE SCARCITY OF SUPPLY
MADE IT PARTICULARLY DIFFICULT LATE LAST YEAR - AND EARLY IN THE QUARTER WHEN
RATES WERE BACKING UP - TO RESTRUCTURE THE PORTFOLIO AND BENEFIT FROM THE RISE
IN INTEREST RATES.
HOW DID THE FUND PERFORM?
FOR THE SIX-MONTH PERIOD ENDING JUNE 30, 2000, THE FUND RETURNED 3.60% COMPARED
TO THE 3.58% AVERAGE FOR THE LIPPER OTHER STATES MUNICIPAL DEBT FUNDS CATEGORY.
THE FUND STARTED THE QUARTER SLOWLY, AS THE RATES ROSE EARLY IN THE FIRST
QUARTER. THE FUND IS OVERLY WEIGHTED WITH LOWER COUPON ISSUES, WHICH CAUSED THE
FUND TO UNDERPERFORM IN A RISING RATE ENVIRONMENT. AS IT BECAME EVIDENT THAT
ISSUANCE WAS GOING TO BE SIGNIFICANTLY LESS THAN YEARS PAST THE DEMAND FOR
MUNICIPAL BONDS INCREASED. THE FUND MADE UP A LOT OF GROUND, MAINLY IN THE
SECOND QUARTER, TO OUTPERFORM THE OTHER STATES AVERAGE FOR 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 3.60% 3.58% 4.48%
1 YEAR 1.18% 0.81% 3.25%
5 YEAR* 4.47% 4.65% 5.88%
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
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WHAT IS YOUR OUTLOOK?
THE SINGLE BIGGEST CHALLENGE FOR THE FUND REMAINS THE LACK OF DIVERSE ISSUER
BASE. AS THE TWO BIGGEST ISSUERS IN THE STATE, THE STATE OF VERMONT AND THE
VERMONT MUNICIPAL BOND BANK, SCALE BACK THEIR DEBT REQUIREMENTS IT HAS MADE IT
MORE DIFFICULT TO MAINTAIN A DIVERSE MIX.
WE MUST STAY NEARLY FULLY INVESTED AT ALL TIMES, BECAUSE WE DON'T HAVE THE
ABILITY TO READILY TRADE ISSUES AS WE COULD IF WE HAD A LARGER ISSUER BASE. WITH
THIS STRATEGY IN MIND, WE WILL CONTINUE TO AUGMENT THE HOLDINGS WITH DEBT ISSUED
BY TERRITORIES, E.G. PUERTO RICO AND VIRGIN ISLANDS, THAT ARE TAX-EXEMPT IN
VERMONT.
JULY 28, 2000
PLEASE REMEMBER, THIS DISCUSSION REFLECTS THE VIEWS AND OPINIONS OF CALVERT
ASSET MANAGEMENT COMPANY AT JUNE 30, 2000, THE END OF THE REPORTING PERIOD. OUR
STRATEGY AND THE FUND'S PORTFOLIO COMPOSITION MAY DIFFER DUE TO EVER-CHANGING
MARKET AND ECONOMIC CONDITIONS. WHILE HISTORICAL PERFORMANCE IS NO GUARANTEE OF
FUTURE RESULTS, IT MAY GIVE YOU A BETTER AND MORE THOROUGH UNDERSTANDING OF OUR
INVESTMENT
DECISIONS AND MANAGEMENT PHILOSOPHY.
PORTFOLIO
STATISTICS
MONTHLY
DIVIDEND YIELD
6.30.00 4.45%
12.31.99 4.45%
30 DAY SEC YIELD
6.30.00 4.45%
12.31.99 4.46%
WEIGHTED
AVERAGE MATURITY
6.30.00 13 YEARS
12.31.99 14 YEARS
EFFECTIVE DURATION
6.30.00 7.03 YEARS
12.31.99 6.66 YEARS
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.
AVERAGE ANNUAL
TOTAL RETURN
AS OF 6.30.00
1 YEAR (2.63%)
5 YEAR 3.67%
INCEPTION 5.30%
(4.01.91)
[INSERT LINE GRAPH HERE]
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STATEMENT OF NET ASSETS
JUNE 30, 2000
PRINCIPAL
MUNICIPAL OBLIGATIONS - 97.9% AMOUNT VALUE
VERMONT - 79.5%
BURLINGTON ELECTRIC REVENUE BONDS, 6.375%, 7/1/10, MBIA INSURED
$3,125,000 $3,436,750
CHITTENDEN SOLID WASTE DISTRICT GO BONDS, 6.60%, 1/1/12,
ASSET GUARANTY INSURED 2,000,000 2,101,060
EDUCATION AND HEALTH REVENUE BONDS:
5.75%, 9/1/05 580,000 580,458
6.60%, 12/1/14 1,000,000 1,036,870
5.50%, 11/1/16 3,000,000 2,986,950
5.50%, 7/1/18 1,955,000 1,739,813
6.25%, 9/1/18 2,000,000 1,796,740
5.625%, 10/1/25, FSA INSURED 1,000,000 956,440
4.90%, 10/1/30 4,500,000 4,500,000
5.00%, 11/1/38 3,000,000 2,567,400
IDA REVENUE BONDS, 5.75%, 1/1/09,
LOC: FIRST VERMONT BANK AND TRUST 1,105,000 1,039,894
MUNICIPAL BOND BANK REVENUE BONDS, 5.50%, 12/1/22,
AMBAC INSURED 1,000,000 967,450
RUTLAND COUNTY SOLID WASTE GO BONDS:
5.95%, 11/1/00 110,000 110,461
6.10%, 11/1/01 110,000 111,882
6.25%, 11/1/02 110,000 113,110
6.35%, 11/1/03 110,000 114,269
6.45%, 11/1/04 110,000 115,545
6.50%, 11/1/05 105,000 111,280
6.55%, 11/1/06 100,000 106,855
6.60%, 11/1/07 100,000 107,594
6.70%, 11/1/08 100,000 108,624
6.75%, 11/1/09 100,000 109,481
6.80%, 11/1/10 100,000 110,219
6.80%, 11/1/11 100,000 111,170
6.85%, 11/1/12 100,000 111,795
STATE GO BONDS:
6.30%, 1/15/06 2,500,000 2,679,000
ZERO COUPON, 8/1/08 400,000 262,864
ZERO COUPON, 8/1/09 300,000 186,345
5.00%, 1/15/11 3,000,000 2,963,670
6.45%, 2/1/12 1,950,000 2,039,544
STATE INDUSTRIAL REDEVELOPMENT REVENUE VRDN, 4.91%, 12/1/04,
LOC: FIRST NATIONAL BANK OF BOSTON 150,000 150,000
STUDENT ASSISTANCE CORPORATION EDUCATION LOAN REVENUE BONDS,
6.50%, 12/15/05, FSA INSURED 2,240,000 2,333,587
UNIVERSITY OF VERMONT AND STATE AGRICULTURE COLLEGE REVENUE BONDS,
4.75%, 10/1/38, MBIA INSURED 2,000,000 1,631,640
TOTAL VERMONT MUNICIPAL OBLIGATIONS (COST $37,981,135) 37,398,760
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PRINCIPAL
MUNICIPAL OBLIGATIONS - CONT'D AMOUNT VALUE
TERRITORIES - 18.4%
GUAM ELECTRIC POWER AUTHORITY REVENUE BONDS, 5.25%, 10/1/12,
AMBAC INSURED $2,000,000 $2,007,700
PUERTO RICO GO BONDS, 6.50%, 7/1/14 1,690,000 1,895,825
PUERTO RICO HIGHWAY ELECTRIC POWER AUTHORITY VRDN, 4.45%, 7/1/22,
BPA: SOCIETE GENERALE 800,000 800,000
PUERTO RICO HIGHWAY TRANSPORTATION AUTHORITY REVENUE BONDS,
4.75%, 7/1/38 1,500,000 1,233,900
PUERTO RICO INFRASTRUCTURE FINANCING AUTHORITY REVENUE VRDN,
3.58%, 7/1/28, BPA: BANK OF AMERICA, AMBAC INSURED
2,700,000 2,700,000
TOTAL TERRITORIES MUNICIPAL OBLIGATIONS (COST $8,979,286)
8,637,425
TOTAL INVESTMENTS (COST $46,960,420) - 97.9% 46,036,185
OTHER ASSETS AND LIABILITIES, NET - 2.1% 987,545
NET ASSETS - 100% $47,023,730
NET ASSETS CONSIST OF:
PAID-IN CAPITAL APPLICABLE TO 3,117,104 CLASS A SHARES OF BENEFICIAL
INTEREST, UNLIMITED NUMBER OF NO PAR SHARES AUTHORIZED:
$47,888,411
UNDISTRIBUTED NET INVESTMENT INCOME 101,270
ACCUMULATED NET REALIZED GAIN (LOSS) ON INVESTMENTS (41,716)
NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS (924,235)
NET ASSETS $47,023,730
NET ASSET VALUE PER SHARE $15.09
ABBREVIATIONS: EXPLANATION OF GUARANTEES:
AMBAC - AMBAC INDEMNITY CORPORATION BPA: BOND-PURCHASE AGREEMENT
GO: GENERAL OBLIGATION LOC: LETTER OF CREDIT
FSA: FINANCIAL SECURITY ASSURANCE
IDA: INDUSTRIAL DEVELOPMENT AUTHORITY
MBIA: MBIA INSURANCE CORPORATION
VRDN: VARIABLE RATE DEMAND NOTES
SEE NOTES TO FINANCIAL STATEMENTS.
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STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2000
NET INVESTMENT INCOME
INVESTMENT INCOME:
INTEREST INCOME $1,255,392
EXPENSES:
INVESTMENT ADVISORY FEE 139,966
TRANSFER AGENCY FEES AND EXPENSES 16,306
TRUSTEES' FEES AND EXPENSES 2,394
ACCOUNTING FEES 6,782
ADMINISTRATIVE FEES 505
CUSTODIAN FEES 8,200
REGISTRATION FEES 1,654
REPORTS TO SHAREHOLDERS 7,025
PROFESSIONAL FEES 2,960
MISCELLANEOUS 1,411
TOTAL EXPENSES 187,203
FEES PAID INDIRECTLY (8,371)
NET EXPENSES 178,832
NET INVESTMENT INCOME 1,076,560
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
NET REALIZED GAIN (LOSS) ON INVESTMENTS 12,960
CHANGE IN UNREALIZED APPRECIATION OR (DEPRECIATION) 536,391
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS 549,351
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $1,625,911
SEE NOTES TO FINANCIAL STATEMENTS.
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STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31,
INCREASE (DECREASE) IN NET ASSETS 2000 1999
OPERATIONS:
NET INVESTMENT INCOME $1,076,560 $2,265,843
NET REALIZED GAIN (LOSS) 12,960 (131,468)
CHANGE IN UNREALIZED APPRECIATION OR (DEPRECIATION)
536,39 (4,330,532)
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 1,625,911 (2,196,157)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME (1,064,755) (2,247,249)
CAPITAL SHARE TRANSACTIONS:
SHARES SOLD 2,957,165 7,532,427
REINVESTMENT OF DISTRIBUTIONS 544,914 1,198,235
SHARES REDEEMED (3,491,297) (9,127,861)
TOTAL CAPITAL SHARE RANSACTIONS 10,782 (397,199)
TOTAL INCREASE (DECREASE) IN NET ASSETS 571,938 (4,840,605)
NET ASSETS
BEGINNING OF PERIOD 46,451,792 51,292,397
END OF PERIOD (INCLUDING UNDISTRIBUTED NET INVESTMENT INCOME
OF $101,270 AND $89,465, RESPECTIVELY) $47,023,730 $46,451,792
CAPITAL SHARE ACTIVITY
SHARES SOLD 197,873 474,984
REINVESTMENT OF DISTRIBUTIONS 36,580 76,713
SHARES REDEEMED (234,024) (585,515)
TOTAL CAPITAL SHARE ACTIVITY 429 (33,818)
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 LIABILITIES AT THE DATE OF THE FINANCIAL
<PAGE>
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, $30,381 WAS PAYABLE AT PERIOD END.
CALVERT ADMINISTRATIVE SERVICES COMPANY, AN AFFILIATE OF THE ADVISOR, PROVIDES
ADMINISTRATIVE SERVICES TO THE FUND FOR AN ANNUAL FEE. THE FUND (EXCLUSIVE OF
THE MONEY MARKET PORTFOLIO) PAYS MONTHLY AN ANNUAL FEE OF $80,000, WHICH IS
ALLOCATED BETWEEN THE PORTFOLIOS BASED ON THEIR RELATIVE NET ASSETS.
CALVERT DISTRIBUTORS, INC., AN AFFILIATE OF THE ADVISOR, IS THE DISTRIBUTOR AND
PRINCIPAL UNDERWRITER FOR THE PORTFOLIO. THE DISTRIBUTOR PAID $4,270 IN ADDITION
TO THE COMMISSIONS CHARGED ON SALES OF THE PORTFOLIO.
CALVERT SHAREHOLDER SERVICES, INC. ("CSSI"), AN AFFILIATE OF THE ADVISOR, IS THE
SHAREHOLDER SERVICING AGENT FOR THE PORTFOLIO. FOR ITS SERVICES, CSSI RECEIVED A
FEE OF $2,311 FOR THE PERIOD ENDED JUNE 30, 2000. UNDER THE TERMS OF THE
AGREEMENT, $419 WAS PAYABLE AT PERIOD END. NATIONAL FINANCIAL DATA SERVICES,
INC., IS THE TRANSFER AND DIVIDEND DISBURSING AGENT.
EACH TRUSTEE WHO IS NOT AFFILIATED WITH THE ADVISOR RECEIVES AN ANNUAL FEE OF
$20,500 PLUS UP TO $1,500 FOR EACH BOARD AND COMMITTEE MEETING ATTENDED. TRUSTEE
FEES ARE ALLOCATED TO EACH OF THE FUNDS SERVED.
NOTE C - INVESTMENT ACTIVITY
DURING THE PERIOD, PURCHASES AND SALES OF INVESTMENTS, OTHER THAN SHORT-TERM
SECURITIES, WERE $966,390 AND $1,650,740, RESPECTIVELY.
THE COST OF INVESTMENTS OWNED AT JUNE 30, 2000 WAS SUBSTANTIALLY THE SAME FOR
FEDERAL INCOME TAX AND FINANCIAL REPORTING PURPOSES. NET UNREALIZED DEPRECIATION
AGGREGATED $924,235, OF WHICH 588,458 RELATED TO APPRECIATED SECURITIES AND
$1,512,693 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 PURSUANT TO RULE 17A-7 UNDER THE
INVESTMENT COMPANY ACT OF 1940.
NOTE D - LINE OF CREDIT
A FINANCING AGREEMENT IS IN PLACE WITH ALL CALVERT GROUP FUNDS (EXCEPT FOR THE
CALVERT SOCIAL INVESTMENT FUND MANAGED INDEX AND CVS AMERITAS INDEX 500
PORTFOLIOS) AND STATE STREET BANK AND TRUST COMPANY ("THE BANK"). UNDER THE
AGREEMENT, THE BANK IS PROVIDING AN UNSECURED LINE OF CREDIT FACILITY, IN THE
AGGREGATE AMOUNT OF $50 MILLION ($25 MILLION COMMITTED AND $25 MILLION
UNCOMMITTED), TO BE ACCESSED BY THE FUNDS FOR TEMPORARY OR EMERGENCY PURPOSES
ONLY. BORROWINGS UNDER THIS FACILITY BEAR INTEREST AT THE OVERNIGHT FEDERAL
FUNDS RATE PLUS .50% PER ANNUM. A COMMITMENT FEE OF .10% PER ANNUM WILL BE
INCURRED ON THE UNUSED PORTION OF THE COMMITTED FACILITY WHICH WILL BE ALLOCATED
TO ALL PARTICIPATING FUNDS. THE PORTFOLIO HAD NO LOANS OUTSTANDING PURSUANT TO
THIS LINE OF CREDIT AT JUNE 30, 2000.
<PAGE>
FINANCIAL HIGHLIGHTS
PERIODS ENDED
JUNE 30, DECEMBER 31, DECEMBER 31,
CLASS A SHARES 2000 1999 1998
NET ASSET VALUE, BEGINNING $14.90 $16.28 $16.45
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .32 .71 .78
NET REALIZED AND UNREALIZED GAIN (LOSS) .21 (1.39) .13
TOTAL FROM INVESTMENT OPERATIONS .53 (.68) .91
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.34) (.70) (.77)
NET REALIZED GAINS - - (.31)
TOTAL DISTRIBUTIONS (.34) (.70) (1.08)
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE
.19 (1.38) (.17)
NET ASSET VALUE, ENDING $15.09 $14.90 $16.28
TOTAL RETURN * 3.60% (4.29%) 5.67%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME 5.38% (A) 4.50% 4.73%
TOTAL EXPENSES .80% (A) .78% .75%
EXPENSES BEFORE OFFSETS .80% (A) .78% .75%
NET EXPENSES .77% (A) .76% .72%
PORTFOLIO TURNOVER 3% 21% 32%
NET ASSETS, ENDING (IN THOUSANDS) $47,024 $46,452 $51,292
YEARS ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31,
CLASS A SHARES 1997 1996 1995
NET ASSET VALUE, BEGINNING $16.33 $16.62 $15.34
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .82 .88 .87
NET REALIZED AND UNREALIZED GAIN (LOSS) .26 (.25) 1.35
TOTAL FROM INVESTMENT OPERATIONS 1.08 .63 2.22
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.82) (.85) (.85)
NET REALIZED GAINS (.14) (.07) (.09)
TOTAL DISTRIBUTIONS (.96) (.92) (.94)
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE
.12 (.29) 1.28
NET ASSET VALUE, ENDING $16.45 $16.33 $16.62
TOTAL RETURN * 6.90% 3.98% 14.86%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME 5.11% 5.27% 5.35%
TOTAL EXPENSES .76% .77% .76%
EXPENSES BEFORE OFFSETS .76% .77% .76%
NET EXPENSES .73% .73% .75%
PORTFOLIO TURNOVER 14% 24% 12%
NET ASSETS, ENDING (IN THOUSANDS) $50,194 $49,774 $60,203
(A) ANNUALIZED
* TOTAL RETURN DOES NOT REFLECT DEDUCTION OF CLASS A FRONT-END SALES CHARGE.
<PAGE>
THIS PAGE INTENTIONALLY LEFT BLANK
<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
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SHAREHOLDERS: 800-368-2745
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TDD FOR HEARING IMPAIRED
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BRANCH OFFICE
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SUITE 1000 NORTH
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C/O NFDS,
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KANSAS CITY, MO 64105
WEB SITE
WWW.CALVERT.COM
PRINCIPAL UNDERWRITER
CALVERT DISTRIBUTORS, INC.
4550 MONTGOMERY AVENUE
SUITE 1000 NORTH
BETHESDA, MARYLAND 20814
CALVERT GROUP'S
FAMILY OF FUNDS
TAX-EXEMPT MONEY MARKET FUNDS
CTFR MONEY MARKET PORTFOLIO
CTFR CALIFORNIA MONEY MARKET PORTFOLIO
TAXABLE MONEY MARKET FUNDS
FIRST GOVERNMENT MONEY MARKET FUND
CSIF MONEY MARKET PORTFOLIO
BALANCED FUND
CSIF BALANCED PORTFOLIO
MUNICIPAL FUNDS
CTFR LIMITED-TERM PORTFOLIO
CTFR LONG-TERM PORTFOLIO
CTFR VERMONT MUNICIPAL PORTFOLIO
NATIONAL MUNI. INTERMEDIATE PORTFOLIO
CALIFORNIA MUNI. INTERMEDIATE PORTFOLIO
TAXABLE BOND FUNDS
CSIF BOND PORTFOLIO
INCOME FUND
EQUITY FUNDS
CSIF MANAGED INDEX PORTFOLIO
CSIF EQUITY PORTFOLIO
CALVERT SOCIAL INDEX FUND
CAPITAL ACCUMULATION FUND
CWV INTERNATIONAL EQUITY FUND
NEW VISION SMALL CAP FUND
NEW AFRICA FUND
<PAGE>
JUNE 30, 2000
SEMI-ANNUAL
REPORT
CALVERT TAX-FREE RESERVES CALIFORNIA MONEY MARKET
PORTFOLIO
<PAGE>
CONTENTS
PRESIDENT'S LETTER
1
PORTFOLIO
MANAGER REMARKS
2
STATEMENT OF
NET ASSETS
4
STATEMENT OF OPERATIONS
7
STATEMENTS OF CHANGES IN NET ASSETS
8
NOTES TO
FINANCIAL STATEMENTS
9
FINANCIAL HIGHLIGHTS
11
DEAR SHAREHOLDERS:
THE FIRST SIX MONTHS OF 2000 HAVE OFFERED MIXED MESSAGES ON GROWTH AND INTEREST
RATES - AND SET A TONE OF CHALLENGE FOR INVESTORS AND FUND MANAGERS. STILL,
CAUTION AND DISCIPLINE HAVE ALWAYS BEEN A KEYNOTE OF OUR MANAGER'S INVESTMENT
STRATEGIES, AND INVESTOR CONFIDENCE IS OUR GOAL WHATEVER THE ECONOMIC CLIMATE.
THE FIRST QUARTER OF THE YEAR CONTINUED MUCH AS 1999 LEFT OFF, WITH CONTINUED
ECONOMIC EXPANSION, LOW INTEREST RATES, STRONG MARKET PERFORMANCE WITHIN CERTAIN
EQUITY SECTORS, AND FLATTENED YIELD CURVES IN THE BOND MARKET AS SHORT-TERM
INTEREST RATES ROSE EACH TIME THE FEDERAL FUNDS BENCHMARK WAS RAISED.
THE SECOND QUARTER OF THE YEAR OFFERED INVESTORS A DIFFERENT PICTURE. ECONOMIC
GROWTH APPEARED TO BE SLOWING AND SOME STOCK MARKET VALUATIONS PROVED
UNSUSTAINABLE. AFTER A SERIES OF RATE INCREASES, THE FED MADE THE DECISION ON
JUNE 28TH TO LEAVE ITS FED FUND RATES UNCHANGED AT 6.5% SINCE THE ECONOMY WAS
FINALLY SLOWING.
WHETHER THE FED IS RIGHT, ONLY TIME AND KEY INDICATORS WILL TELL. CERTAINLY NO
ONE IS RULING OUT THE POSSIBILITY OF FURTHER INTERVENTION LATER IN THE YEAR IF
MORE CHECKS ON INFLATIONARY PRESSURE ARE NEEDED. IF SUCH ACTIONS PROVE
NECESSARY, THE LONG-AWAITED BOND MARKET RECOVERY COULD BE SHORT-LIVED, WITH A
RETURN TO FLATTENING YIELDS FOR THE INVESTOR. MEANWHILE, WALL STREET APPEARS
CONFIDENT THAT THE ECONOMY IS IN FOR A SOFT LANDING - WITH SLOWER GROWTH IN
CORPORATE PROFITS AND STABILIZED RETURNS ON EQUITY INVESTMENTS.
WHAT SHOULD ALL THIS SIGNAL TO THE REASONABLE INVESTOR? THAT INVESTOR DISCIPLINE
AND THE NEED TO MAKE INFORMED DECISIONS IS AS IMPORTANT AS EVER BEFORE. AS
ALWAYS, WE ENCOURAGE YOU TO MAKE DECISIONS BASED ON YOUR FINANCIAL OBLIGATIONS
AND TOLERANCE FOR RISK. YOUR FINANCIAL PROFESSIONAL CAN SUGGEST STRATEGIES THAT
CAN KEEP YOU ON TRACK TO MEET YOUR OBJECTIVES.
WE APPRECIATE YOUR INVESTMENT IN CALVERT GROUP FUNDS AND LOOK FORWARD TO WORKING
WITH YOU TO ACHIEVE YOUR FINANCIAL GOALS.
SINCERELY,
BARBARA J. KRUMSIEK
PRESIDENT AND CEO
JULY 28, 2000
<PAGE>
TOM DAILEY IS A MEMBER OF THE CAMCO PORTFOLIO MANAGEMENT TEAM.
CALVERT 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 SIX MONTHS?
AFTER SIX RATE HIKES BY THE FEDERAL RESERVE OVER THE LAST YEAR - THREE OF WHICH
OCCURRED IN THE PAST SIX MONTHS - THE ROARING ECONOMY HAS FINALLY SHOWN SOME
SIGNS OF SLOWING TOWARD A MORE ACCEPTABLE RATE OF GROWTH. AT THIS POINT HOWEVER,
THE FED STILL BELIEVES THE RISKS ARE WEIGHTED TOWARD HIGHER INFLATION. SO, WHILE
THEY HELD RATES STEADY AT THEIR JUNE 2000 MEETING, THEY ARE WATCHING FOR SIGNS
THAT THE RECENT DECELERATION OF ECONOMIC ACTIVITY WAS NOT AN ABERRATION, BUT A
REAL CONFIRMATION OF A MORE REASONABLE RATE OF GROWTH. IF THE POOL OF AVAILABLE
WORKERS IN THE U.S. REMAINS LOW, AND CONSUMER DEMAND CONTINUES AT THE CURRENT
PACE, WE BELIEVE THE FED WILL AGAIN HIKE RATES. THE FEDERAL RESERVE IS PLAYING A
BALANCING ROLE: TRYING TO KEEP THE ECONOMIC EXPANSION GOING AT A PACE WILL THAT
KEEP INFLATION IN CHECK, WHILE AT THE SAME TIME PREVENTING THE ECONOMY FROM
SLIDING INTO A RECESSION.
HOW DID THE FUND PERFORM?
THE PORTFOLIO'S TOTAL RETURN FOR THE SIX MONTHS ENDING JUNE 30, 2000 WAS 1.51%.
THIS WAS ABOVE THE 1.44% RETURN FOR THE AVERAGE CALIFORNIA TAX-EXEMPT MONEY
MARKET FUND TRACKED BY LIPPER ANALYTICAL SERVICES, INC.
WHAT WAS YOUR STRATEGY DURING THIS PERIOD?
IN LIGHT OF THE FED TIGHTENING, WE KEPT THE PORTFOLIO'S AVERAGE MATURITY VERY
SHORT TO TAKE ADVANTAGE OF HIGHER RATES. KEEPING THE FUND SHORT ALSO PROVIDES US
WITH THE LIQUIDITY NEEDED FOR REDEMPTIONS THAT TAX-FREE MONEY FUNDS EXPERIENCE
DURING THE APRIL TAX SEASON. DURING THIS TIME, RATES RISE DRAMATICALLY RELATIVE
TO TAXABLE EQUIVALENT RATES, SINCE ALL TAX EXEMPT MONEY FUNDS ARE SELLING
SECURITIES TO RAISE CASH TO MEET REDEMPTIONS. THE KEY TO MAKING IT THROUGH TAX
SEASON SUCCESSFULLY IS HAVING ENOUGH CASH IN THE FUND TO MEET REDEMPTIONS AND
BEING ABLE TO BUY THE SECURITIES THE OTHER FUNDS ARE SELLING AT A DISCOUNT.
THE SUMMER BRINGS MUCH NEEDED SUPPLY TO THE MARKET AS WELL IN THE FORM OF
MUNICIPAL NOTES. SINCE THE RATES ON THE NOTES WERE ATTRACTIVE RELATIVE TO
TAXABLE EQUIVALENT RATES, WE PURCHASED A NUMBER OF THESE ISSUES, THEREBY
EXTENDING THE PORTFOLIO'S AVERAGE MATURITY. WHEN THE NEW SUPPLY SUBSIDES, WE
EXPECT THESE SECURITIES TO APPRECIATE ACCORDINGLY.
WHAT IS YOUR OUTLOOK?
WE BELIEVE THE FED IS APPROACHING THE END OF THE CURRENT TIGHTENING CYCLE AND
ECONOMIC GROWTH WILL LIKELY SLOW FROM ITS RAPID PACE TO A MORE ACCEPTABLE NON
INFLATIONARY RATE OF EXPANSION. THE LONGER AVERAGE MATURITY OF THE FUND SHOULD
HAVE A POSITIVE IMPACT ON PERFORMANCE IN THE CURRENT ENVIRONMENT.
<PAGE>
WE CONTINUE TO KEEP THE FUND INVESTED IN VERY LIQUID SECURITIES. GREATER
LIQUIDITY WILL GIVE US GREATER FLEXIBILITY TO INVEST IN HIGHER YIELDING
SECURITIES SHOULD RATES RISE SIGNIFICANTLY.
JULY 28, 2000
PLEASE REMEMBER, THIS DISCUSSION REFLECTS THE VIEWS AND OPINIONS OF CALVERT
ASSET MANAGEMENT COMPANY AT JUNE 30, 2000, THE END OF THE REPORTING PERIOD. OUR
STRATEGY AND THE FUND'S PORTFOLIO COMPOSITION MAY DIFFER DUE TO EVER-CHANGING
MARKET AND ECONOMIC CONDITIONS. WHILE HISTORICAL PERFORMANCE IS NO GUARANTEE OF
FUTURE RESULTS, IT MAY GIVE YOU A BETTER AND MORE THOROUGH UNDERSTANDING OF OUR
INVESTMENT DECISIONS AND MANAGEMENT PHILOSOPHY.
PORTFOLIO
STATISTICS
WEIGHTED
AVERAGE MATURITY
6.30.00 53 DAYS
12.31.99 69 DAYS
COMPARATIVE MONTH-END YIELDS
IBC'S STATE
CTFR SPECIFIC SB&GP
CALIFORNIA TAX-FREE MONEY
MONEY MARKET MARKET AVERAGES
6.30.00 3.28% 3.46%
5.31.00 3.68% 3.87%
4.30.00 3.07% 3.20%
3.31.00 2.84% 2.94%
2.29.00 2.53% 2.73%
1.31.00 2.59% 2.70%
12.31.99 3.15% 3.08%
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.
AVERAGE ANNUAL
TOTAL RETURN
AS OF 6.30.00
1 YEAR 2.96%
5 YEAR 3.16%
10 YEAR 3.33%
INCEPTION 3.52%
(10.16.89)
<PAGE>
STATEMENT OF NET ASSETS
JUNE 30, 2000
PRINCIPAL
MUNICIPAL OBLIGATIONS - 107.1% AMOUNT VALUE
CALIFORNIA - 98.0%
ABN AMRO CALIFORNIA MUNITOPS CERTIFICATES TRUST VRDN,
4.47%, 8/1/24, BPA: ABN AMRO BANK $3,000,000 $3,000,000
ALAMEDA CONTRA COSTA SCHOOLS FINANCING AUTHORITY VRDN:
4.35%, 11/1/14, LOC: CREDIT LOCAL DE FRANCE, INSUR: AMBAC
2,015,000 2,015,000
4.35%, 8/1/24, BPA: CREDIT LOCAL DE FRANCE, INSUR: AMBAC
16,785,000 16,785,000
CONTRA COSTA COUNTY MFH REVENUE VRDN, 4.90%, 10/20/28,
LOC:STATE STREET BANK AND TRUST 7,320,000 7,320,000
FRESNO MFH REVENUE VRDN, 6.70%, 5/1/15, LOC: TOKAI BANK, LTD
. 8,700,000 8,700,000
HOUSING FINANCE AGENCY REVENUE VRDN:
4.42%, 8/1/14, LOC: BANCO SANTANDER 4,845,000 4,845,000
4.90%, 8/1/10, TOA: CITIBANK 2,410,000 2,410,000
INLAND VALLEY DEVELOPMENT AGENCY CALIFORNIA TAX ALLOCATION VRDN,
3.85%, 3/1/27, CONF: CAL STERS, LOC: UNION BANK OF CALIFORNIA
10,000,000 10,000,000
LAKE ELSINORE REDEVELOPMENT AGENCY MFH REVENUE, 4.77%, 1/25/31,
BPA: MERRILL LYNCH 4,120,000 4,120,000
LOS ANGELES COMMUNITY REDEVELOPMENT MFH REVENUE VRDN,
5.20%, 12/1/05, LOC: BANK OF AMERICA 13,550,000 13,550,000
LOS ANGELES CONVENTION & EXHIBITION CENTER AUTHORITY LEASE REVENUE
VRDN, 4.42%, 8/15/18, BPA: MERRILL LYNCH
9,600,000 9,600,000
LOS ANGELES COUNTY MFH REVENUE VRDN:
4.75% 12/1/07, CONF: FEDERAL HOME LOAN BANK
4,000,000 4,000,000
5.80% 11/1/09, LOC: INDUSTRIAL BANK OF JAPAN
17,000,000 17,000,000
LOS ANGELES COUNTY SCHOOLS POOLED TAX & REVENUE ANTICIPATION NOTES,
4.00%, 9/29/00, INSUR: FSA 5,000,000 5,005,105
LOS ANGELES COUNTY TAX & REVENUE ANTICIPATION NOTES,
5.00%, 6/29/01 18,000,000 18,145,260
LOS ANGELES REGIONAL AIRPORTS IMPROVEMENT CORPORATION LEASE
REVENUE, 4.55%, 12/1/25, LOC: SOCIETE GENERALE
2,000,000 2,000,000
LOS ANGELES TRANSPORTATION COMMISSION SALES TAX REVENUE VRDN
4.60%, 8/20/03, LOC: CREDIT SUISSE 8,490,000 8,490,000
MIDWAY SCHOOL DISTRICT COPS VRDN, 5.05%, 2/1/23,
LOC: UNION BANK OF CALIFORNIA 4,840,000 4,840,000
MODESTO IRRIGATION DISTRICT FINANCING AUTHORITY REVENUE VRDN,
4.42%, 10/1/15, BPA: SOCIETE GENERALE
14,000,000 14,000,000
OCEANSIDE MFH REVENUE VRDN, 5.05%, 8/1/17,
SURBD: CONTINENTAL CASUALTY COMPANY
6,040,000 6,040,000
ONTARIO REVENUE VRDN, 4.60%, 10/1/26, CONF: CAL STERS,
LOC: UNION BANK OF CALIFORNIA 7,770,000 7,770,000
ORANGE COUNTY MFH AUTHORITY VRDN, 4.75%, 5/1/22,
LOC: BANQUE PARIBAS 3,500,000 3,500,000
PALMDALE SCHOOL DISTRICT PROJECT LEASE VRDN, 4.95%, 12/13/10,
LOC: NATIONAL WESTMINSTER BANK 5,265,000 5,265,000
PITNEY BOWES CREDIT CORPORATION LEASE TOPS TRUST CERTIFICATES
VRDN, 4.99%, 10/10/01, BPA: PITNEY BOWES CREDIT
8,407,856 8,407,856
PUBLIC CAPITAL IMPROVEMENTS FINANCING AUTHORITY TRUST
RECEIPTS VRDN, 4.75%, 3/1/18, BPA: BANK OF NEW YORK,
INSUR: MBIA 17,400,000 17,400,000
<PAGE>
PRINCIPAL
MUNICIPAL OBLIGATIONS - CONT'D AMOUNT VALUE
CALIFORNIA - CONT'D
RIVERSIDE COUNTY SCHOOL FINANCIAL AUTHORITY NOTES, 4.00%, 8/1/00
$13,415,000 $13,421,014
SAN BERNARDINO TAX AND REVENUE ANTICIPATION NOTES, 3.75% 9/29/00
20,000,000 20,007,450
SAN BERNARDINO COPS VRDN, 4.15%, 3/1/24, LOC: BAYER HYPOBANK
3,945,000 3,945,000
SAN BERNARDINO MFH REVENUE VRDN, 4.41%, 6/1/05,
LOC: HOUSEHOLD FEDERAL SAVINGS 2,000,000 2,000,000
SAN BERNARDINO MFH REVENUE VRDN, 5.00%, 8/25/29,
LOC: CHASE MANHATTAN BANK 5,520,000 5,520,000
SAN DIEGO TAX ANTICIPATION NOTES, 4.25%, 9/29/00
8,000,000 8,014,120
SAN FRANCISCO REDEVELOPMENT MFH VRDN:
4.45%, 10/1/00, LOC: CREDIT SUISSE 1,930,000 1,930,000
SAN MARCOS IDA VRDN, 5.07%, 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 46,700,000 46,701,059
STATE ECONOMIC DEVELOPMENT FINANCIAL AUTHORITY VRDN,
4.50%, 3/1/23, LOC: AMERICAN NATIONAL BANK AND TRUST
2,600,000 2,600,000
STATE TRASPORTATION FINANCE AUTHORITY VRDN, 4.35%, 10/1/27,
BPA: CREDIT SUISSE, INSUR: FSA 10,000,000 10,000,000
STATEWIDE COMMUNITY DEVELOPMENT AUTHORITY MFH VRDN:
4.45%, 7/1/27, CONF: CAL STERS, LOC: SANWA BANK CALIFORNIA
7,655,000 7,655,000
4.30%, 6/1/33, LOC: HELLER FINANCIAL 4,850,000 4,850,000
STATEWIDE COMMUNITY DEVELOPMENT CORPORATION REVENUE VRDN:
4.65%, 6/1/19, LOC: CAL STERS 2,550,000 2,550,000
4.65%, 5/1/22, CONF: CAL STERS, LOC: SANWA BANK CALIFORNIA
2,630,000 2,630,000
STATEWIDE COMMUNITY DEVELOPMENT REVENUE NOTES, 5.25%, 6/29/01
16,700,000 16,854,308
UPLAND COMMUNITY REDEVELOPMENT MFH REVENUE BOND VRDN,
4.40%, 2/15/30, LOC: FNMA 2,000,000 2,000,000
VALLEJO IDA REVENUE VRDN, 4.50%, 12/1/23,
LOC: WELLS FARGO BANK 5,300,000 5,300,000
VICTORVILLE MFH REVENUE VRDN, 5.05%, 12/1/15,
C/LOC: CALIFORNIA FEDERAL BANK 6,510,000 6,510,000
WATEREUSE FINANCIAL AUTHORITY REVENUE BOND VRDN, 4.35%, 5/1/28,
BPA: CREDIT SUISSE, INSUR: FSA 12,050,000 12,050,000
PUERTO RICO - 9.1%
PUERTO RICO ELECTRIC POWER AUTHORITY GO VRDN:
4.42%, 7/1/16, BPA: MERRILL LYNCH 7,760,000 7,760,000
4.45%, 7/1/22, BPA: SOCIETE GENERALE
5,600,000 5,600,000
PUERTO RICO INFRASTRUCTURE GO VRDN, 4.42%, 7/1/28,
BPA: BANK OF AMERICA 3,965,000 3,965,000
PUERTO RICO TAX & REVENUE ANTICIPATION NOTES, 4.50%, 7/30/00
18,000,000 18,007,273
TOTAL INVESTMENTS (COST $415,543,445) - 107.1% 415,543,445
OTHER ASSETS AND LIABILITIES, NET - (7.1%) (27,463,466)
NET ASSETS - 100% $388,079,979
<PAGE>
NET ASSETS CONSIST OF:
PAID IN CAPITAL APPLICABLE TO 388,201,730 SHARES OF BENEFICIAL INTEREST,
UNLIMITED NUMBER OF NO PAR SHARES AUTHORIZED $388,201,770
UNDISTRIBUTED NET INVESTMENT INCOME 14,938
ACCUMULATED REALIZED GAIN/(LOSS) ON INVESTMENTS (136,729)
NET ASSETS $388,079,979
NET ASSET VALUE PER SHARE $1.00
EXPLANATION OF GUARANTEES: ABBREVIATIONS:
BPA: BOND-PURCHASE AGREEMENT AMBAC: AMERICAN MUNICIPAL BOND ASSURANCE CORP.
CONF: CONFIRMING LETTER OF CREDIT COPS: CERTIFICATES OF PARTICIPATION
INSUR: INSURANCE FGIC: FINANCIAL GUARANTY INSURANCE COMPANY
LOC: LETTER OF CREDIT FSA: FINANCIAL SECURITY ADVISOR
C/LOC: COLLATERALIZED LOC GO: GENERAL OBLIGATION
SURBD: SURETY BOND IDA: INDUSTRIAL DEVELOPMENT AUTHORITY
TOA: TENDER OPTION AGREEMENT MBIA: MUNICIPAL BOND INSURANCE ASSOCIATION
MFH: MULTI-FAMILY HOUSING
VRDN: VARIABLE RATE DEMAND NOTES
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2000
NET INVESTMENT INCOME
INVESTMENT INCOME:
INTEREST INCOME $7,410,086
EXPENSES:
INVESTMENT ADVISORY FEE 1,015,659
TRANSFER AGENCY FEES AND EXPENSES 218,237
ACCOUNTING FEES 25,806
TRUSTEES' FEES AND EXPENSES 21,075
ADMINISTRATIVE FEES 16,330
CUSTODIAN FEES 28,345
REGISTRATION FEES 2,378
REPORTS TO SHAREHOLDERS 36,719
PROFESSIONAL FEES 10,490
MISCELLANEOUS 9,261
TOTAL EXPENSES 1,384,300
FEES PAID INDIRECTLY (45,976)
NET EXPENSES 1,338,324
NET INVESTMENT INCOME 6,071,762
REALIZED GAIN (LOSS) ON INVESTMENTS
NET REALIZED GAIN (LOSS) (3,930)
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $6,067,832
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31,
INCREASE (DECREASE) IN NET ASSETS 2000 1999
OPERATIONS:
NET INVESTMENT INCOME $6,071,762 $11,960,268
NET REALIZED GAIN (LOSS) (3,930) (17,324)
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 6,067,832 11,942,944
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME (6,057,159) (11,977,529)
CAPITAL SHARE TRANSACTIONS:
SHARES SOLD 194,829,135 382,201,783
REINVESTMENT OF DISTRIBUTIONS 5,987,917 11,781,361
SHARES REDEEMED (240,692,373) (403,579,178)
TOTAL CAPITAL SHARE TRANSACTIONS (39,875,321) (9,596,034)
TOTAL INCREASE (DECREASE) IN NET ASSETS (39,864,648) (9,630,619)
NET ASSETS
BEGINNING OF PERIOD 427,944,627 437,575,246
END OF PERIOD (INCLUDING UNDISTRIBUTED NET INVESTMENT INCOME
OF $14,938 AND $335, RESPECTIVELY) $388,079,979 $427,944,627
SHARE ACTIVITY
SHARES SOLD 194,829,135 382,201,783
REINVESTMENT OF DISTRIBUTIONS 5,987,917 11,781,361
SHARES REDEEMED (240,692,373) (403,579,178)
NET SHARE ACTIVITY (39,875,321) (9,596,034)
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, $203,724 WAS PAYABLE AT PERIOD END.
<PAGE>
CALVERT ADMINISTRATIVE SERVICES COMPANY, AN AFFILIATE OF THE ADVISOR, PROVIDES
ADMINISTRATIVE SERVICES TO THE FUND FOR AN ANNUAL FEE. THE FUND (EXCLUSIVE OF
THE MONEY MARKET PORTFOLIO) PAYS MONTHLY AN ANNUAL FEE OF $80,000, WHICH IS
ALLOCATED BETWEEN THE PORTFOLIOS BASED ON THEIR RELATIVE NET ASSETS. UNDER THE
TERMS OF THE AGREEMENT, $2,744 WAS PAYABLE AT PERIOD END.
CALVERT DISTRIBUTORS, INC., AN AFFILIATE OF THE ADVISOR, IS THE DISTRIBUTOR AND
PRINCIPAL UNDERWRITER FOR THE PORTFOLIO.
CALVERT SHAREHOLDER SERVICES, INC. (CSSI), AN AFFILIATE OF THE ADVISOR, IS THE
SHAREHOLDER SERVICING AGENT FOR THE FUND. FOR ITS SERVICES, CSSI RECEIVED A FEE
OF $112,996 FOR THE PERIOD ENDED JUNE 30, 2000. UNDER THE TERMS OF THE
AGREEMENT, $19,372 WAS PAYABLE AT PERIOD END. NATIONAL FINANCIAL DATA SERVICES,
INC. IS THE TRANSFER AND DIVIDEND DISBURSING AGENT.
EACH TRUSTEE WHO IS NOT AFFILIATED WITH THE ADVISOR RECEIVES AN ANNUAL FEE OF
$20,500 PLUS UP TO $1,500 FOR EACH BOARD AND COMMITTEE MEETING ATTENDED.
TRUSTEE'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 PURSUANT TO RULE 17A-7 UNDER THE
INVESTMENT COMPANY ACT OF 1940.
NOTE D - LINE OF CREDIT
A FINANCING AGREEMENT IS IN PLACE WITH ALL CALVERT GROUP FUNDS (EXCEPT FOR THE
CALVERT SOCIAL INVESTMENT FUND MANAGED INDEX AND CVS AMERITAS INDEX 500
PORTFOLIOS) AND STATE STREET BANK AND TRUST COMPANY ("THE BANK"). UNDER THE
AGREEMENT, THE BANK IS PROVIDING AN UNSECURED LINE OF CREDIT FACILITY, IN THE
AGGREGATE AMOUNT OF $50 MILLION ($25 MILLION COMMITTED AND $25 MILLION
UNCOMMITTED), TO BE ACCESSED BY THE FUNDS FOR TEMPORARY OR EMERGENCY PURPOSES
ONLY. BORROWINGS UNDER THIS FACILITY BEAR INTEREST AT THE OVERNIGHT FEDERAL
FUNDS RATE PLUS .50% PER ANNUM. A COMMITMENT FEE OF .10% PER ANNUM WILL BE
INCURRED ON THE UNUSED PORTION OF THE COMMITTED FACILITY WHICH WILL BE ALLOCATED
TO ALL PARTICIPATING FUNDS. THE PORTFOLIO HAD NO LOANS OUTSTANDING PURSUANT TO
THIS LINE OF CREDIT AT JUNE 30, 2000.
<PAGE>
FINANCIAL HIGHLIGHTS
PERIODS ENDED
JUNE 30, DECEMBER 31, DECEMBER 31,
2000 1999 1998
NET ASSET VALUE, BEGINNING $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .015 .028 .031
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.015) (.028) (.031)
NET ASSET VALUE, ENDING $1.00 $1.00 $1.00
TOTAL RETURN 1.51% 2.80% 3.19%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME 2.99% (A) 2.75% 3.13%
TOTAL EXPENSES .68% (A) .66% .69%
EXPENSES BEFORE OFFSETS .68% (A) .66% .67%
NET EXPENSES .66% (A) .65% .65%
NET ASSETS, ENDING (IN THOUSANDS) $388,080 $427,945 $437,575
YEARS ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31,
1997 1996 1995
NET ASSET VALUE, BEGINNING $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .032 .031 .037
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.032) (.031) (.037)
NET ASSET VALUE, ENDING $1.00 $1.00 $1.00
TOTAL RETURN 3.28% 3.17% 3.78%*
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME 3.22% 3.14% 3.69%
TOTAL EXPENSES .71% .72% .76%
EXPENSES BEFORE OFFSETS .66% .69% .76%
NET EXPENSES .65% .68% .75%
NET ASSETS, ENDING (IN THOUSANDS) $321,001 $346,008 $300,351
(A) ANNUALIZED
* TOTAL RETURN NUMBERS DO NOT REFLECT THE TENDER OPTION AGREEMENT. ON
DECEMBER 15, 1994, THE PORTFOLIO ENTERED INTO A TENDERED OPTION AGREEMENT WITH
THE ADVISOR VALUED AT $600,000 TO SECURE PAYMENT OF AN "AT RISK" INVESTMENT. ON
JUNE 30, 1995, THE INVESTMENT PAID THE PORTFOLIO IN FULL AND THE OPTION EXPIRED
UNUSED. THE EXPIRATION LOSS WAS APPLIED AGAINST THE ADVISOR'S CAPITAL
CONTRIBUTION OF THE OPTION.
<PAGE>
THIS PAGE INTENTIONALLY LEFT BLANK
<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
TAXABLE BOND FUNDS
CSIF BOND PORTFOLIO
INCOME FUND
EQUITY FUNDS
CSIF MANAGED INDEX PORTFOLIO
CSIF EQUITY PORTFOLIO
CALVERT SOCIAL INDEX FUND
CAPITAL ACCUMULATION FUND
CWV INTERNATIONAL EQUITY FUND
NEW VISION SMALL CAP FUND
NEW AFRICA FUND
<PAGE>
JUNE 30, 2000
SEMI-ANNUAL
REPORT
CALVERT TAX-FREE RESERVES
<PAGE>
CONTENTS
PRESIDENT'S LETTER
1
PORTFOLIO
MANAGER REMARKS
2
STATEMENT OF
NET ASSETS
8
STATEMENTS OF OPERATIONS
23
STATEMENTS OF CHANGES IN NET ASSETS
24
NOTES TO
FINANCIAL STATEMENTS
28
FINANCIAL HIGHLIGHTS
32
DEAR SHAREHOLDERS:
THE FIRST SIX MONTHS OF 2000 HAVE OFFERED MIXED MESSAGES ON GROWTH AND INTEREST
RATES - AND SET A TONE OF CHALLENGE FOR INVESTORS AND FUND MANAGERS. STILL,
CAUTION AND DISCIPLINE HAVE ALWAYS BEEN A KEYNOTE OF OUR MANAGER'S INVESTMENT
STRATEGIES, AND INVESTOR CONFIDENCE IS OUR GOAL WHATEVER THE ECONOMIC CLIMATE.
THE FIRST QUARTER OF THE YEAR CONTINUED MUCH AS 1999 LEFT OFF, WITH CONTINUED
ECONOMIC EXPANSION, LOW INTEREST RATES, STRONG MARKET PERFORMANCE WITHIN CERTAIN
EQUITY SECTORS, AND FLATTENED YIELD CURVES IN THE BOND MARKET AS SHORT-TERM
INTEREST RATES ROSE EACH TIME THE FEDERAL FUNDS BENCHMARK WAS RAISED.
THE SECOND QUARTER OF THE YEAR OFFERED INVESTORS A DIFFERENT PICTURE. ECONOMIC
GROWTH APPEARED TO BE SLOWING AND SOME STOCK MARKET VALUATIONS PROVED
UNSUSTAINABLE. AFTER A SERIES OF RATE INCREASES, THE FED MADE THE DECISION ON
JUNE 28TH TO LEAVE ITS FED FUND RATES UNCHANGED AT 6.5% SINCE THE ECONOMY WAS
FINALLY SLOWING.
WHETHER THE FED IS RIGHT, ONLY TIME AND KEY INDICATORS WILL TELL. CERTAINLY NO
ONE IS RULING OUT THE POSSIBILITY OF FURTHER INTERVENTION LATER IN THE YEAR IF
MORE CHECKS ON INFLATIONARY PRESSURE ARE NEEDED. IF SUCH ACTIONS PROVE
NECESSARY, THE LONG-AWAITED BOND MARKET RECOVERY COULD BE SHORT-LIVED, WITH A
RETURN TO FLATTENING YIELDS FOR THE INVESTOR. MEANWHILE, WALL STREET APPEARS
CONFIDENT THAT THE ECONOMY IS IN FOR A SOFT LANDING - WITH SLOWER GROWTH IN
CORPORATE PROFITS AND STABILIZED RETURNS ON EQUITY INVESTMENTS.
WHAT SHOULD ALL THIS SIGNAL TO THE REASONABLE INVESTOR? THAT INVESTOR DISCIPLINE
AND THE NEED TO MAKE INFORMED DECISIONS IS AS IMPORTANT AS EVER BEFORE. AS
ALWAYS, WE ENCOURAGE YOU TO MAKE DECISIONS BASED ON YOUR FINANCIAL OBLIGATIONS
AND TOLERANCE FOR RISK. YOUR FINANCIAL PROFESSIONAL CAN SUGGEST STRATEGIES THAT
CAN KEEP YOU ON TRACK TO MEET YOUR OBJECTIVES.
WE APPRECIATE YOUR INVESTMENT IN CALVERT GROUP FUNDS AND LOOK FORWARD TO WORKING
WITH YOU TO ACHIEVE YOUR FINANCIAL GOALS.
SINCERELY,
BARBARA J. KRUMSIEK
PRESIDENT AND CEO
JULY 28, 2000
<PAGE>
TOM DAILEY IS A MEMBER OF THE CAMCO PORTFOLIO MANAGEMENT TEAM.
CALVERT 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 SIX MONTHS?
AFTER SIX RATE HIKES BY THE FEDERAL RESERVE OVER THE LAST YEAR - THREE OF WHICH
OCCURRED IN THE PAST SIX MONTHS - THE ROARING ECONOMY HAS FINALLY SHOWN SOME
SIGNS OF SLOWING TOWARD A MORE ACCEPTABLE RATE OF GROWTH. AT THIS POINT HOWEVER,
THE FED STILL BELIEVES THE RISKS ARE WEIGHTED TOWARD HIGHER INFLATION. SO, WHILE
THEY HELD RATES STEADY AT THEIR JUNE 2000 MEETING, THEY ARE WATCHING FOR SIGNS
THAT THE RECENT DECELERATION OF ECONOMIC ACTIVITY WAS NOT AN ABERRATION, BUT A
REAL CONFIRMATION OF A MORE REASONABLE RATE OF GROWTH. IF THE POOL OF AVAILABLE
WORKERS IN THE U.S. REMAINS LOW, AND CONSUMER DEMAND CONTINUES AT THE CURRENT
PACE, WE BELIEVE THE FED WILL AGAIN HIKE RATES. THE FEDERAL RESERVE IS PLAYING A
BALANCING ROLE: TRYING TO KEEP THE ECONOMIC EXPANSION GOING AT A PACE WILL THAT
KEEP INFLATION IN CHECK, WHILE AT THE SAME TIME PREVENTING THE ECONOMY FROM
SLIDING INTO A RECESSION.
HOW DID THE FUND PERFORM?
THE MONEY MARKET PORTFOLIO'S CLASS O SHARES TOTAL RETURN FOR THE SIX MONTHS
ENDING JUNE 30, 2000 WAS 1.88%. THIS WAS AHEAD OF THE 1.66% TOTAL RETURN FOR THE
AVERAGE TAX-EXEMPT MONEY MARKET FUND TRACKED BY LIPPER ANALYTICAL SERVICES, INC.
WHAT WAS YOUR STRATEGY DURING THIS PERIOD?
IN LIGHT OF THE FED TIGHTENING WE KEPT THE PORTFOLIO'S AVERAGE MATURITY VERY
SHORT TO TAKE ADVANTAGE OF HIGHER RATES. KEEPING THE FUND SHORT ALSO PROVIDES US
WITH THE LIQUIDITY NEEDED FOR REDEMPTIONS THAT TAX-FREE MONEY FUNDS EXPERIENCE
DURING THE APRIL TAX SEASON. DURING THIS TIME, RATES RISE DRAMATICALLY RELATIVE
TO TAXABLE EQUIVALENT RATES, SINCE ALL TAX EXEMPT MONEY FUNDS ARE SELLING
SECURITIES TO RAISE CASH TO MEET REDEMPTIONS. THE KEY TO MAKING IT THROUGH TAX
SEASON SUCCESSFULLY IS HAVING ENOUGH CASH IN THE FUND TO MEET REDEMPTIONS AND
BEING ABLE TO BUY THE SECURITIES THE OTHER FUNDS ARE SELLING AT A DISCOUNT.
THE SUMMER BRINGS MUCH NEEDED SUPPLY TO THE MARKET AS WELL IN THE FORM OF
MUNICIPAL NOTES. SINCE THE RATES ON THE NOTES WERE ATTRACTIVE RELATIVE TO
TAXABLE EQUIVALENT RATES, WE PURCHASED A NUMBER OF THESE ISSUES, THEREBY
EXTENDING THE PORTFOLIO'S AVERAGE MATURITY. WHEN THE NEW SUPPLY SUBSIDES, WE
EXPECT THESE SECURITIES TO APPRECIATE ACCORDINGLY.
WHAT IS YOUR OUTLOOK?
WE BELIEVE THE FED IS APPROACHING THE END OF THE CURRENT TIGHTENING CYCLE AND
ECONOMIC GROWTH WILL LIKELY SLOW FROM ITS RAPID PACE TO A MORE ACCEPTABLE NON
INFLATIONARY RATE OF EXPANSION. THE LONGER AVERAGE
<PAGE>
MATURITY OF THE FUND SHOULD HAVE A POSITIVE IMPACT ON PERFORMANCE IN THE CURRENT
ENVIRONMENT. WE CONTINUE TO KEEP THE FUND INVESTED IN VERY LIQUID SECURITIES.
GREATER LIQUIDITY WILL GIVE US GREATER FLEXIBILITY TO INVEST IN HIGHER YIELDING
SECURITIES SHOULD RATES RISE SIGNIFICANTLY.
JULY 28, 2000
PLEASE REMEMBER, THIS DISCUSSION REFLECTS THE VIEWS AND OPINIONS OF CALVERT
ASSET MANAGEMENT COMPANY AT JUNE 30, 2000, THE END OF THE REPORTING PERIOD. OUR
STRATEGY AND THE FUND'S PORTFOLIO COMPOSITION MAY DIFFER DUE TO EVER-CHANGING
MARKET AND ECONOMIC CONDITIONS. WHILE HISTORICAL PERFORMANCE IS NO GUARANTEE OF
FUTURE RESULTS, IT MAY GIVE YOU A BETTER AND MORE THOROUGH UNDERSTANDING OF OUR
INVESTMENT
DECISIONS AND MANAGEMENT PHILOSOPHY.
PORTFOLIO
STATISTICS
WEIGHTED
AVERAGE MATURITY
6.30.00 53 DAYS
12.31.99 35 DAYS
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
6.30.00 4.03% 3.62%
5.31.00 4.36% 4.04%
4.30.00 3.78% 3.37%
3.31.00 3.49% 3.11%
2.29.00 3.42% 2.93%
1.31.00 3.30% 2.86%
12.31.99 3.61% 3.23%
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 6.30.00
1 YEAR 3.51%
5 YEAR 3.37%
10 YEAR 3.53%
INCEPTION 4.65%
(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?
DURING THE FIRST QUARTER OF 2000, MUNICIPAL RATES CONTINUED TO RISE DRAMATICALLY
IN LIGHT OF FED TIGHTENING. INTEREST RATES IN THE SHORT END OF THE MUNICIPAL
MARKET WERE PRICING IN MORE FED HIKES THAN WHAT A REASONABLE MARKET OBSERVER
WOULD EXPECT. THEREFORE, WE BEGAN TO BUY AGGRESSIVELY, EXTENDING THE AVERAGE
MATURITY OF THE PORTFOLIO. OUR PRIORITY REMAINS TO SEARCH FOR SECURITIES THAT
OFFER THE HIGHEST TAX FREE YIELDS CONSISTENT WITH A HIGH DEGREE OF PRICE
STABILITY. AS HINTS OF AN ECONOMIC SLOWDOWN SURFACED IN THE SECOND QUARTER,
SHORT TERM MUNICIPAL RATES QUICKLY REVERSED COURSE AND DROPPED TO LEVELS THAT
REFLECTED THE MARKET'S PERCEPTION OF A FED THAT WAS NEARING THE END OF THE
TIGHTENING CYCLE.
HOW DID THE FUND PERFORM?
THE FUND'S SIX-MONTH TOTAL RETURN ENDING JUNE 30, 2000 WAS 2.10%, OUTPERFORMING
THE 1.99% RETURN FOR THE AVERAGE SHORT TERM MUNICIPAL FUND TRACKED BY LIPPER
ANALYTICAL SERVICES, INC.
WHAT IS YOUR OUTLOOK?
WE CONTINUE TO BELIEVE THE FED WILL REMAIN VIGILANT IN THEIR FIGHT AGAINST
INFLATION, BUT THAT THEY WILL HAVE LITTLE, IF ANY, ADDITIONAL FIGHTING TO DO IN
THE NEAR FUTURE. THEREFORE, THE LONGER-WEIGHTED AVERAGE MATURITY SHOULD BODE
WELL FOR THE FUND IN THE CURRENT ENVIRONMENT. THE FUND ALSO HOLDS POSITIONS IN
VERY LIQUID MUNICIPAL NOTES THAT GIVE US THE
COMPARATIVE INVESTMENT PERFORMANCE
CTFR LIPPER SHORT LEHMAN
LIMITED-TERM MUNICIPAL DEBT MUNICIPAL BOND
PORTFOLIO FUNDS AVERAGE INDEX TR
6 MONTH 2.10% 1.99% 4.48%
1 YEAR 3.61% 2.97% 3.25%
5 YEAR* 3.83% 3.91% 5.88%
10 YEAR* 4.35% 4.60% 7.06%
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>
FLEXIBILITY TO INVEST IN HIGHER YIELDING SECURITIES SHOULD RATES RISE
SIGNIFICANTLY.
JULY 28, 2000
PLEASE REMEMBER, THIS DISCUSSION REFLECTS THE VIEWS AND OPINIONS OF CALVERT
ASSET MANAGEMENT COMPANY AT JUNE 30, 2000, THE END OF THE REPORTING PERIOD. OUR
STRATEGY AND THE FUND'S PORTFOLIO COMPOSITION MAY DIFFER DUE TO EVER-CHANGING
MARKET AND ECONOMIC CONDITIONS. WHILE HISTORICAL PERFORMANCE IS NO GUARANTEE OF
FUTURE RESULTS, IT MAY GIVE YOU A BETTER AND MORE THOROUGH UNDERSTANDING OF OUR
INVESTMENT DECISIONS AND MANAGEMENT PHILOSOPHY.
PORTFOLIO
STATISTICS
MONTHLY
DIVIDEND YIELD
6.30.00 4.70%
12.31.99 3.90%
30 DAY SEC YIELD
6.30.00 4.40%
12.31.99 3.85%
WEIGHTED
AVERAGE MATURITY
6.30.00 324 DAYS
12.31.99 307 DAYS
EFFECTIVE DURATION
6.30.00 276 DAYS
12.31.99 311 DAYS
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]
AVERAGE ANNUAL
TOTAL RETURN
AS OF 6.30.00
1 YEAR 2.56%
5 YEAR 3.62%
10 YEAR 4.24%
INCEPTION 5.82%
(3.04.81)
<PAGE>
EMMETT LONG IS A MEMBER OF THE CAMCO PORTFOLIO MANAGEMENT TEAM.
CALVERT TAX-FREE RESERVES LONG-TERM PORTFOLIO SEEKS TO EARN THE HIGHEST LEVEL OF
INTEREST INCOME EXEMPT FROM FEDERAL INCOME TAXES AS IS CONSISTENT WITH PRUDENT
INVESTMENT MANAGEMENT, PRESERVATION OF CAPITAL AND THE QUALITY AND MATURITY
CHARACTERISTICS OF THE PORTFOLIO.
FUND
INFORMATION
ASSET ALLOCATION
LONG-TERM
TAX-EXEMPT BONDS
NASDAQ SYMBOL
CTTLX
CUSIP NUMBER
131620-30-4
CALVERT TAX-FREE RESERVES
LONG-TERM PORTFOLIO
HOW WOULD YOU CHARACTERIZE THE INVESTMENT CLIMATE OVER THE PAST SIX MONTHS?
THE FIRST QUARTER WAS FILLED WITH UNCERTAINTY, AS THE FED CONTINUED TO RAISE
RATES. IN YEARS PAST, WE HAVE SEEN MUNICIPAL BONDS DRAMATICALLY UNDERPERFORM THE
TREASURY MARKET DURING THE FIRST FOUR MONTHS. THIS YEAR WAS VERY DIFFERENT: THE
EUPHORIA IN THE EQUITY MARKET CREATED TRIBULATIONS FOR THE MUNICIPAL BOND
MANAGERS. INDEED, THERE CONTINUED TO BE ONLY A TIMID INTEREST IN THESE BONDS.
THE EXCESS REVENUES FROM TAX REVENUES HAVE AFFORDED MUNICIPALITIES THE ABILITY
TO ISSUE LESS DEBT. THE RISING INTEREST RATE ENVIRONMENT HAS SUSPENDED SOME
ISSUANCE ALLOWING PRICES FOR MUNICIPALS TO OUTPERFORM OTHER FIXED INCOME
SECURITIES. EARLY IN THE FIRST QUARTER THERE WAS ANTICIPATION THAT THIS WOULD BE
ENOUGH TO SLOW AN OVERHEATED ECONOMY. BONDS TEMPORARILY RALLIED FOLLOWED BY A
TRADE OFF IN THE FOLLOWING DAYS.
HOW DID THE FUND PERFORM?
THE FUND PERFORMED VERY WELL THROUGH THE SIX MONTHS ENDING JUNE 30, 2000,
OUTPERFORMING THE LIPPER AVERAGE, 4.68% VS. 3.95%.
WHAT WAS YOUR STRATEGY?
FUND PERFORMANCE CAN BE ATTRIBUTED TO THE SLIGHT ADJUSTMENTS WE MADE TO THE
DURATION IN THE EARLY SPRING 1999. AT THAT TIME, WE DECIDED TO SHORTEN THE
DURATION TO CAPTURE SOME OF THE PERFORMANCE THAT WOULD RESULT FROM A RISING
INTEREST RATE ENVIRONMENT. THIS MOVE ENABLED US TO SLIGHTLY EXTEND THE DURATION
GOING INTO THE FIRST QUARTER OF YEAR 2000, AND HELPED DRIVE THE FUND'S
PERFORMANCE TO THE TOP QUARTILE FOR ALL MUNICIPAL FUNDS.
COMPARATIVE INVESTMENT PERFORMANCE
CTFR LIPPER GENERAL LEHMAN
LONG-TERM MUNICIPAL DEBT MUNICIPAL BOND
PORTFOLIO FUNDS AVERAGE INDEX TR
6 MONTH 4.68% 3.95% 4.48%
1 YEAR 1.95% 0.98% 3.25%
5 YEAR* 4.68% 4.76% 5.88%
10 YEAR* 6.25% 6.40% 7.06%
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 BELIEVE THAT THE FEDERAL RESERVE WILL CONTINUE TO RAISE INTEREST RATES AT
LEAST ONE MORE TIME IN THE SECOND HALF OF THE YEAR. ONE MORE RATE INCREASE WILL
HAVE ONLY A MODEST IMPACT ON THE MARKET, SINCE THAT HAS BEEN PRICE INTO THE
MARKET. THE MUNICIPAL MARKET CURRENTLY IS NOT PERFORMING LIKE OTHER FIXED
INCOME MARKETS, BECAUSE OF THE SIGNIFICANT REDUCTION IN ISSUANCE THUS FAR THIS
YEAR. WE BELIEVE THE AMOUNT OF ISSUANCE IS GOING TO BE THE MOST SIGNIFICANT
FACTOR FOR THE MUNICIPAL MARKET. IF WE SEE ISSUANCE AT HISTORIC OR HIGHER LEVELS
THE MUNICIPAL MARKET COULD SHOW SIGNS OF UNDERPERFORMING OTHER FIXED INCOME
MARKETS DURING THE SECOND HALF OF THE YEAR. IF THIS OCCURS WE WILL LOOK TO
SLIGHTLY SHORTEN THE DURATION. WE WOULD ALSO EVALUATE SECTORS FOR SECURITIES
THAT WILL ADD VALUE TO THE FUND'S OVERALL PERFORMANCE DURING THIS PERIOD.
JULY 28, 2000
PLEASE REMEMBER, THIS DISCUSSION REFLECTS THE VIEWS AND OPINIONS OF CALVERT
ASSET MANAGEMENT COMPANY AT JUNE 30, 2000, THE END OF THE REPORTING PERIOD. OUR
STRATEGY AND THE FUND'S PORTFOLIO COMPOSITION MAY DIFFER DUE TO EVER-CHANGING
MARKET AND ECONOMIC CONDITIONS. WHILE HISTORICAL PERFORMANCE IS NO GUARANTEE OF
FUTURE RESULTS, IT MAY GIVE YOU A BETTER AND MORE THOROUGH UNDERSTANDING OF OUR
INVESTMENT DECISIONS AND MANAGEMENT PHILOSOPHY.
PORTFOLIO
STATISTICS
MONTHLY
DIVIDEND YIELD
6.30.00 4.70%
12.31.99 4.53%
30 DAY SEC YIELD
6.30.00 4.50%
12.31.99 4.68%
WEIGHTED
AVERAGE MATURITY
6.30.00 17 YEARS
12.31.99 15 YEARS
EFFECTIVE DURATION
6.30.00 8.66 YEARS
12.31.99 14.34 YEARS
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]
AVERAGE ANNUAL
TOTAL RETURN
AS OF 6.30.00
1 YEAR -1.89%
5 YEAR 3.88%
10 YEAR 5.84%
INCEPTION 7.26%
(8.23.83)
<PAGE>
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS
JUNE 30, 2000
PRINCIPAL
MUNICIPAL OBLIGATIONS - 98.6% AMOUNT VALUE
ALABAMA - 3.1%
ATHENS IDA REVENUE VRDN, 6.10%, 6/1/05, LOC: TOKAI BANK, LTD.
$3,500,000 $3,500,000
AUBURN IDA REVENUE VRDN, 5.05%, 5/1/20, LOC: AMSOUTH BANK
4,680,000 4,680,000
CALHOUN COUNTY ECONOMIC DEVELOPMENT COUNCIL REVENUE VRDN:
5.05%, 5/1/10 3,000,000 3,000,000
5.05%, 3/1/18, LOC: FNB BOSTON 1,800,000 1,800,000
COLBERT COUNTY IDA REVENUE VRDN, 5.05%, 10/1/11,
LOC: SOUTHTRUST BANK 4,000,000 4,000,000
LINCOLN SOLID WASTE DISPOSAL REVENUE VRDN, 5.50%, 6/1/14,
LOC: BANK OF AMERICA 1,000,000 1,000,000
MFH REVENUE VRDN:
4.80%, 11/1/08, LOC: SOUTHTRUST BANK, AL 1,805,000 1,805,000
4.85%, 4/1/14, LOC: SOUTHTRUST BANK, AL 740,000 740,000
4.85%, 9/1/20, LOC: SOUTHTRUST BANK, AL 2,995,000 2,995,000
MOBILE COUNTY IDA REVENUE VRDN, 5.05%, 4/1/20,
LOC: SOUTHTRUST BANK, AL 4,000,000 4,000,000
MOBILE SPRING HILL MEDICAL CLINIC REVENUE VRDN, 4.80%, 2/1/11,
LOC: AMSOUTH BANK 3,045,000 3,045,000
MONTGOMERY IDA REVENUE VRDN, 5.05%, 9/15/04,
LOC: SOUTHTRUST BANK 2,285,000 2,285,000
NORTHPOINT MFH REVENUE VRDN:
4.95%, 9/3/15, LOC: AMSOUTH BANK 2,055,000 2,055,000
4.85%, 7/1/18, LOC: AMSOUTH BANK 5,490,000 5,490,000
VALLEY SPECIAL CARE FACILITIES REVENUE VRDN, 4.95%, 6/1/25,
LOC: COLUMBUS BANK & TRUST 2,830,000 2,830,000
WYNLAKES GOVERNMENT UTILITY AUTHORITY REVENUE VRDN,
5.05%, 5/1/06, LOC: AMSOUTH BANK 4,000,000 4,000,000
ARIZONA - 1.8%
APACHE COUNTY IDA REVENUE VRDN, 4.75%, 12/15/18,
LOC: BANK OF NEW YORK 4,600,000 4,600,000
PINAL COUNTY IDA REVENUE VRDN, 5.90%, 12/1/05,
LOC: INDUSTRIAL BANK OF JAPAN 10,000,000 10,000,000
PRESCOTT IDA REVENUE VRDN, 4.55%, 12/1/14,
GA: HOUSEHOLD FINANCE CORP. 8,000,000 8,000,000
SANTA CRUZ COUNTY IDA REVENUE VRDN, 4.30%, 8/10/00
5,000,000 5,000,000
ARKANSAS - 0.9%
ARKADELPHIA IDA REVENUE VRDN, 4.90%, 4/1/11,
LOC: DEN DANSKE BANK 4,000,000 4,000,000
FAYETTEVILLE PUBLIC FACILITIES REVENUE VRDN, 4.60%, 9/1/27
3,300,000 3,300,000
NORTH LITTLE ROCK HEALTH CARE FACILITIES REVENUE VRDN,
4.75%, 12/1/21, BPA: CREDIT SUISSE, MBIA INSURED
6,900,000 6,900,000
<PAGE>
PRINCIPAL
MUNICIPAL OBLIGATIONS - CONT'D AMOUNT VALUE
CALIFORNIA - 5.7%
INLAND VALLEY DEVELOPMENT AGENCY TAX ALLOCATION VRDN,
3.85%, 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,
5.20%, 12/1/05, LOC: INDUSTRIAL BANK OF JAPAN
7,795,000 7,795,000
LOS ANGELES COUNTY TAX AND REVENUE ANTICIPATION NOTES,
5.00%, 6/29/01 3,000,000 3,024,210
SAN FRANCISCO CITY AND COUNTY MFH REVENUE VRDN,
4.45%, 10/1/00, LOC: CREDIT SUISSE 4,200,000 4,200,000
SCHOOL CASH RESERVE PROGRAM AUTHORITY REVENUE NOTES,
4.00%, 7/3/00, AMBAC INSURED 25,000,000 24,998,269
STATE PUBLIC CAPITAL IMPROVEMENTS FINANCING AUTHORITY REVENUE VRDN,
4.75%, 3/1/18, BPA: BANK OF NEW YORK, MBIA INSURED
13,000,000 13,000,000
WATEREUSE FINANCE AUTHORITY REVENUE VRDN, 4.35%, 4/1/28,
BPA: CREDIT SUISSE, FSA INSURED 300,000 300,000
COLORADO - 1.1%
BOULDER COUNTY MFH REVENUE VRDN, 5.35%, 12/25/31,
LOC: CHASE MANHATTAN 1,564,000 1,564,000
CENTRAL CITY MFH REVENUE VRDN, 5.35%, 12/25/30,
LOC: TEXAS COMMERCE BANK 3,194,000 3,194,000
FORT COLLINS MFH REVENUE VRDN:
5.35%, 11/25/30, LOC: TEXAS COMMERCE BANK 7,950,000 7,950,000
5.35%, 12/25/31, LOC: CHASE MANHATTAN 1,509,000 1,509,000
LAKEWOOD IDA REVENUE VRDN, 5.15%, 8/1/07, LOC: BANK ONE, NA
2,060,000 2,060,000
CONNECTICUT - 0.1%
CONNECTICUT STATE HEALTH AND EDUCATION FACILITIES AUTHORITY REVENUE
VRDN, 4.55%, 7/1/33 1,500,000 1,500,000
DISTRICT OF COLUMBIA - 1.6%
MUNICIPAL TRUST RECEIPTS:
5.05% , 6/1/03, LOC: CREDIT SUISSE, FSA INSURED
5,300,000 5,300,000
5.05%, 7/27/03, LOC: CREDIT SUISSE, AMBAC INSURED
10,900,000 10,900,000
5.05%, 6/1/05, LOC: CREDIT SUISSE, MBIA INSURED
7,710,000 7,710,000
FLORIDA - 5.9%
DUVAL COUNTY MFH REVENUE VRDN, 5.30%, 7/1/25,
LOC: HOUSEHOLD FINANCE CORP. 6,750,000 6,750,000
GULF BREEZE PUBLIC IMPROVEMENT REVENUE VRDN, 4.80%, 12/1/20,
LOC: DEXIA CREDIT LOCAL DE FRANCE, FGIC INSURED
27,900,000 27,900,000
HOUSING FINANCE AGENCY REVENUE VRDN, 4.80%, 7/1/23,
C/LOC: COMMERZE BANK, AG, LOC: HELLER FINANCIAL
8,800,000 8,800,000
JACKSONVILLE ELECTRIC AUTHORITY COMMERCIAL PAPER, 4.45%, 8/15/00,
LOC: LANDESBANK HESSEN-TH 30,000,000 30,000,000
ORANGE COUNTY HEALTH FACILITIES AUTHORITY REVENUE VRDN:
5.02%, 3/27/06, LOC: CREDIT SUISSE, MBIA INSURED
2,600,000 2,600,000
5.02%, 10/1/06, LOC: CREDIT SUISSE, MBIA INSURED
6,880,000 6,880,000
5.02%, 10/1/08, LOC: CREDIT SUISSE, MBIA INSURED
4,000,000 4,000,000
VOLUSIA COUNTY MFH REVENUE VRDN, 4.90%, 9/1/05,
LOC: AMSOUTH BANK 4,000,000 4,000,000
<PAGE>
PRINCIPAL
MUNICIPAL OBLIGATIONS - CONT'D AMOUNT VALUE
GEORGIA - 12.3%
ATHENS MFH REVENUE VRDN, 5.175%, 8/1/05,
C/LOC: US BANK,NA $2,000,000 $2,000,000
BURKE COUNTY DEVELOPMENT AUTHORITY REVENUE VRDN,
4.45%, 1/1/19, BPA: RABOBANK, NEDERLAND, AMBAC INSURED
15,725,000 15,725,000
COLUMBUS DOWNTOWN DEVELOPMENT AUTHORITY REVENUE VRDN,
5.00%, 8/1/15, LOC: COLUMBUS BANK & TRUST 7,625,000 7,625,000
FRANKLIN COUNTY INDUSTRIAL BUILDING AUTHORITY REVENUE VRDN,
5.05%, 1/1/07, LOC: COMERICA BANK 2,000,000 2,000,000
JACKSON COUNTY IDA REVENUE VRDN, 5.05%, 12/1/24,
LOC: BARCLAYS BANK, PLC. 2,460,000 2,460,000
MUNICIPAL GAS AUTHORITY REVENUE VRDN:
5.90%, 2/1/07 LOC: ABN AMRO BANK 39,800,000 39,797,057
5.90%, 11/1/07 LOC: BANK OF AMERICA 71,020,000 71,017,853
5.90%, 1/1/08 LOC: BANK OF AMERICA 44,100,000 44,100,000
STATE RESIDENTIAL FINANCIAL AUTHORITY REVENUE VRDN, 4.15%, 9/1/00,
TOA: CITIBANK 2,130,000 2,130,000
WARNER ROBINS DOWNTOWN DEVELOPMENT AUTHORITY REVENUE VRDN,
5.10%, 9/1/34, LOC: COLUMBUS BANK & TRUST 1,300,000 1,300,000
HAWAII - 0.3%
STATE DEPARTMENT BUDGET AND FINANCE VRDN, 5.35%, 12/1/21,
LOC: UNION BANK OF CALIFORNIA 4,964,250 4,964,250
IDAHO - 1.0%
STATE TAX ANTICIPATION NOTES, 5.375%, 2/15/06
15,000,000 15,142,800
ILLINOIS - 4.1%
ARLINGTON HEIGHTS MFH REVENUE VRDN, 5.70%, 5/1/24,
LOC: HELLER FINANCIAL 4,230,000 4,230,000
CHICAGO MUNICIPAL TRUST RECEIPTS VRDN, 5.02%, 1/1/18,
LOC: CREDIT SUISSE, AMBAC INSURED 2,900,000 2,900,000
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:
4.70%, 12/1/05, BPA: BANK ONE, NA, FGIC INSURED
13,050,000 13,050,000
4.75%, 9/30/12, LOC: BANK ONE, NA 2,245,000 2,245,000
ELGIN IDA REVENUE VRDN, 4.82%, 9/1/16, LOC: LASALLE BANK
4,000,000 4,000,000
GALESBURG KNOX COLLEGE PROJECT REVENUE VRDN, 4.80%, 3/1/31,
LOC: LASALLE BANK 4,000,000 4,000,000
HOUSING DEVELOPMENT AUTHORITY REVENUE VRDN:
4.05%, 9/8/00, LOC: BEAR STEARNS CAPITAL MARKETS
10,520,000 10,520,000
6.70%, 2/1/24, LOC: SUMITOMO BANK, LTD. 7,865,000 7,865,000
IDA REVENUE VRDN:
5.13%, 9/2/05, LOC: AMERICAN NATIONAL BANK & TRUST
1,600,000 1,600,000
4.90%, 9/1/26, LOC: FIRSTAR BANK, MILWAUKEE
2,162,500 2,162,500
ROCKFORD ECONOMIC DEVELOPMENT REVENUE VRDN, 4.20%, 12/1/10,
LOC: US BANK, NA 2,160,000 2,160,000
<PAGE>
PRINCIPAL
MUNICIPAL OBLIGATIONS - CONT'D AMOUNT VALUE
INDIANA - 2.0%
FRANKFORT ECONOMIC IDA REVENUE VRDN, 6.70%, 1/1/23,
LOC: DAI-ICHI KANGYO BANK $4,400,000 $4,400,000
PORTAGE INDUSTRIAL POLLUTION CONTROL REVENUE VRDN, 6.00%, 5/1/18,
LOC: BANK OF TOKYO-MITSUBISHI, LTD. 5,150,000 5,150,000
SHELBYVILLE IDA REVENUE VRDN, 6.70%, 9/1/06,
LOC: INDUSTRIAL BANK OF JAPAN 7,550,000 7,550,000
SOUTH BEND MFH REVENUE VRDN, 5.05%, 10/1/09,
LOC: FHLB-INDIANAPOLIS 4,360,000 4,360,000
SPENCER COUNTY INDUSTRIAL POLLUTION CONTROL REVENUE VRDN,
6.00%, 11/1/18 3,680,000 3,680,000
VIGO COUNTY IDA REVENUE VRDN, 5.87%, 5/1/16,
LOC: OLD NATIONAL BANK 5,500,000 5,500,000
KENTUCKY - 3.1%
CARROLL COUNTY SOLID WASTE IDA REVENUE VRDN, 5.25%, 5/1/27,
LOC: BANCO BILBAO VIZCAYA 5,951,000 5,951,000
GLASGOW IRB VRDN, 6.65%, 6/1/20,
LOC: BANK OF TOKYO-MITSUBISHI, LTD. 4,400,000 4,400,000
HANCOCK COUNTY IDA REVENUE VRDN, 5.00%, 6/1/12,
LOC: CHASE MANHATTAN 4,005,000 4,005,000
HOPKINSVILLE IDA REVENUE VRDN, 6.70%, 4/1/04,
LOC: DAI-ICHI KANGYO BANK 6,800,000 6,800,000
TRIMBLE COUNTY POLLUTION CONTROL REVENUE VRDN:
5.25%, 9/6/00 12,500,000 12,500,000
4.50%, 9/7/00 14,000,000 14,000,000
LOUISIANA - 5.7%
EAST BATON ROUGE MORTGAGE FINANCE AUTHORITY REVENUE VRDN,
5.063%, 10/1/22 13,105,000 13,105,000
NEW ORLEANS AVIATION BOARD REVENUE VRDN, 4.80%, 8/5/15,
BPA: DEXIA CREDIT LOCAL DE FRANCE, MBIA INSURED
15,250,000 15,250,000
NEW ORLEANS HOUSING AUTHORITY REVENUE VRDN, 5.063%, 12/1/32
11,525,000 11,525,000
NEW ORLEANS LEVEE DISTRICT REVENUE VRDN, 5.30%, 10/1/17,
LOC: FUJI BANK, LTD. 24,155,000 24,155,000
PUBLIC FACILITIES AUTHORITY REVENUE VRDN:
4.85%, 12/1/14, LOC: FIRST REGIONS BANK 2,660,000 2,660,000
4.82%, 9/1/28, C/LOC: BANK OF NEW YORK, LOC: HIBERNIA
20,900,000 20,900,000
MARYLAND - 0.0%
BALTIMORE IDA REVENUE VRDN, 4.75%, 8/1/16,
LOC: BAYERISHE LANDESBANK GIROZENTRALE 200,000 200,000
MASSACHUSETTS - 1.2%
HUDSON IDA REVENUE VRDN, 5.15%, 10/1/13, LOC: FNB BOSTON
950,000 950,000
STATE INDUSTRIAL FINANCE AUTHORITY REVENUE VRDN,
5.15%, 8/1/14, LOC: FNB BOSTON 4,200,000 4,200,000
STATE PUBLIC IMPROVEMENT GO BONDS, 7.625%, 6/1/08
11,895,000 12,501,990
<PAGE>
PRINCIPAL
MUNICIPAL OBLIGATIONS - CONT'D AMOUNT VALUE
MICHIGAN - 3.0%
SAULT SAINTE MARIE TRIBE BUILDING REVENUE VRDN, 5.80%, 6/1/03,
LOC: FIRST OF AMERICA BANK, MI $3,390,000 $3,390,000
STATE MUNICIPAL BOND AUTHORITY REVENUE NOTES, 4.75%, 4/26/01
26,500,000 26,604,050
STATE STRATEGIC FUND ECONOMIC DEVELOPMENT LO REVENUE VRDN:
6.70%, 9/1/08, LOC: DAI-ICHI KANGYO BANK 6,800,000 6,800,000
6.80%, 11/1/09, LOC: TOKAI BANK, LTD. 9,000,000 9,000,000
MINNESOTA - 0.8%
COTTAGE GROVE POLLUTION CONTROL BOARD REVENUE VRDN,
4.86%, 8/1/12 1,100,000 1,100,000
MINNEAPOLIS COMMUNITY DEVELOPMENT AGENCY REVENUE VRDN,
6.00%, 2/1/12, LOC: SUMITOMO BANK, LTD. 11,855,000 11,855,000
MISSISSIPPI - 0.9%
BUSINESS FINANCIAL CORP. IDA REVENUE VRDN, 5.20%, 6/1/06,
LOC: FIRST UNION BANK, NC 3,675,000 3,675,000
STATE DEVELOPMENT BANK SPECIAL GO BOND VRDN, 5.02%, 6/1/20,
BPA: AMSOUTH BANK, AMBAC INSURED 10,000,000 10,000,000
MISSOURI - 1.5%
KANSAS CITY AIRPORT REVENUE BONDS, 5.00%, 9/1/00, FSA INSURED
3,520,000 3,526,929
KANSAS CITY MFH REVENUE VRDN, 4.95%, 6/1/15,
LOC: HUNTINGTON NATIONAL BANK 6,480,000 6,480,000
ST. LOUIS IDA REVENUE VRDN, 6.00%, 1/1/21,
LOC: BANCA NAZIONALE DEL LAVORO 9,300,000 9,300,000
STATE MFH REVENUE VRDN, 5.35%, 12/25/30,
LOC: TEXAS COMMERCE BANK 4,000,000 4,000,000
NEBRASKA - 0.3%
IDA REVENUE VRDN, 6.70%, 12/1/04, LOC: SANWA BANK, LTD.
4,000,000 4,000,000
NEVADA - 0.2%
HENDERSON PUBLIC IMPROVEMENT TRUST REVENUE VRDN, 4.82%, 4/1/07,
LOC: BANK OF AMERICA 2,500,000 2,500,000
NEW JERSEY - 0.4%
STATE HEALTH CARE FACILITIES FINANCING AUTHORITY REVENUE VRDN,
6.625%, 7/1/17 6,185,000 6,429,728
NEW YORK - 5.8%
LONG ISLAND ELECTRIC POWER AUTHORITY REVENUE VRDN,
4.70%, 8/28/00, LOC: BAYERISHE LANDESBANK GIROZENTRALE
6,800,000 6,800,000
MUNICIPAL SECURITIES TRUST CERTIFICATES REVENUE VRDN:
4.00%, 6/26/11, LOC: BEAR STEARNS CAPITAL MARKETS
35,650,000 35,650,000
4.40%, 5/11/13, LOC: BEAR STEARNS CAPITAL MARKETS
34,950,000 34,919,802
NEW YORK CITY MUNICIPAL WATER COMMERCIAL PAPER, 4.75%, 8/31/00,
LOC: LANDESBANK HESSEN-THURINGEN 9,400,000 9,400,000
STATE ENERGY RESEARCH DEVELOPMENT AUTHORITY AND POLLUTION CONTROL
REVENUE VRDN, 4.55%, 10/1/29, LOC: BANK ONE, NA
2,000,000 2,000,000
<PAGE>
PRINCIPAL
MUNICIPAL OBLIGATIONS - CONT'D AMOUNT VALUE
NORTH CAROLINA - 1.6%
PERSON COUNTY IDA & POLLUTION CONTROL FINANCE AUTHORITY REVENUE
VRDN, 5.00%, 11/1/19 $25,150,000 $25,150,000
NORTH DAKOTA - 0.4%
TRAILL COUNTY SOLID WASTE DISPOSAL REVENUE VRDN, 5.10%, 3/1/13
5,750,000 5,750,000
OHIO - 1.1%
CLEVELAND PUBLIC POWER SYSTEM REVENUE VRDN, 4.97%, 11/15/18,
BPA: COMMERZE BANK, AG 4,995,000 4,995,000
PIQUA IDA REVENUE VRDN, 5.90%, 10/1/01, LOC: SANWA BANK, LTD.
5,800,000 5,800,000
STATE MFH REVENUE VRDN, 5.35%, 12/25/29,
LOC: CHASE MANHATTAN 5,370,000 5,370,000
OKLAHOMA - 0.3%
TULSA IDA REVENUE VRDN, 4.70%, 11/1/00 5,000,000 5,000,000
PENNSYLVANIA - 5.1%
DELAWARE COUNTY AUTHORITY REVENUE VRDN, 4.85%, 7 /1/14,
LOC: PNC BANK NA 8,400,000 8,400,000
MONTGOMERY COUNTY HIGHER EDUCATION AND HEALTH AUTHORITY
REVENUE BOND, 6.66%, 7/5/11, AMBAC INSURED
16,000,000 16,618,493
MONTGOMERY COUNTY IDA REVENUE VRDN, 4.75%, 12/1/13,
LOC: FIRST UNION BANK, NC 150,000 150,000
MUNICIPAL SECURITIES TRUST CERTIFICATES REVENUE VRDN:
5.05%, 2/1/03, LOC: BEAR STEARNS CAPITAL MARKETS
10,725,000 10,725,000
4.80%, 4/15/06, LOC: BEAR STEARNS CAPITAL MARKETS,
AMBAC INSURED 21,925,000 21,925,000
PHILADELPHIA MFH REDEVELOPMENT AUTHORITY REVENUE VRDN,
4.60%, 12/1/09, LOC: HONG KONG SHANGHAI 2,750,000 2,750,000
STATE HIGHER EDUCATION REVENUE VRDN, 5.00%, 5/10/01
16,500,000 16,601,588
WEST CORNWALL TOWNSHIP MUNICIPAL AUTHORITY REVENUE VRDN,
4.90%, 3/1/16, LOC: FIRST UNION 1,640,000 1,640,000
PUERTO RICO - 0.0%
ELECTRIC POWER AUTHORITY GO VRDN, 4.45%, 7/1/22,
BPA: SOCIETE GENERALE 200,000 200,000
SOUTH CAROLINA - 0.6%
DORCHESTER COUNTY IDA REVENUE VRDN, 5.40%, 10/1/24,
LOC: BAYERISCHE VEREINSBANK 5,100,000 5,100,000
ORANGEBURG IDA REVENUE VRDN, 5.15%, 6/1/08, LOC: FNB BOSTON
3,900,000 3,900,000
TENNESSEE - 6.3%
COFFEE COUNTY IDA REVENUE VRDN,
6.55%, 12/1/01, LOC: ASAHI BANK 9,000,000 9,000,000
4.97%, 5/1/12, LOC: BANK OF AMERICA 4,340,000 4,340,000
MEMPHIS-SHELBY COUNTY IDA REVENUE VRDN, 4.95%, 3/1/24,
LOC: NATIONAL BANK OF COMMERCE, TN 6,000,000 6,000,000
<PAGE>
PRINCIPAL
MUNICIPAL OBLIGATIONS - CONT'D AMOUNT VALUE
TENNESSEE - CONT'D
SEVIER COUNTY PUBLIC BUILDING AUTHORITY REVENUE VRDN,
4.80%, 6/1/03, BPA: KBC BANK, AMBAC INSURED
$13,000,000 $13,000,000
4.80%, 6/1/12, BPA: KBC BANK, AMBAC INSURED
3,000,000 3,000,000
4.80%, 6/1/14, BPA: LANDESBANK HESSEN-THURIGEN, AMBAC INSURED
3,000,000 3,000,000
4.80%, 6/1/17, BPA: LANDESBANK HESSEN-THURIGEN, AMBAC INSURED
3,500,000 3,500,000
4.80%, 6/1/18, BPA: LANDESBANK HESSEN-THURIGEN, AMBAC INSURED
16,455,000 16,455,000
4.80%, 6/1/19, BPA: LANDESBANK HESSEN-THURIGEN, AMBAC INSURED
12,000,000 12,000,000
4.80%, 6/1/19, BPA: KBC BANK, AMBAC INSURED
4,200,000 4,200,000
4.80%, 6/1/20, BPA: LANDESBANK HESSEN-THURIGEN, AMBAC INSURED
2,300,000 2,300,000
4.80%, 6/1/21, BPA: LANDESBANK HESSEN-THURIGEN, AMBAC INSURED
5,000,000 5,000,000
4.60%, 6/1/23, BPA: MORGAN GUARANTY TRUST, FSA INSURED
6,900,000 6,900,000
4.80%, 6/1/23, BPA: CREDIT SUISSE, AMBAC INSURED
8,590,000 8,590,000
TEXAS - 6.5%
BEXAR COUNTY MFH REVENUE VRDN, 5.57%, 5/1/30,
LOC: HELLER FINANCIAL 3,710,000 3,710,000
CLEBURNE IDA REVENUE VRDN, 5.05%, 2/1/04,
LOC: NATIONAL CITY BANK 1,250,000 1,250,000
GRAND PRAIRIE IDA REVENUE VRDN, 4.55%, 12/1/06,
LOC: PNC BANK, N.A. 1,900,000 1,900,000
HARRIS COUNTY IDA REVENUE VRDN,
6.70%, 8/1/01, LOC: BANK OF TOKYO-MITSUBISHI, LTD.
8,200,000 8,200,000
SOUTHEAST HOUSING FINANCE CORP. REVENUE VRDN, 5.063%, 3/8/01
12,370,000 12,370,000
STATE TAX AND REVENUE ANTICIPATION NOTES, 4.50%, 8/31/00
72,000,000 72,014,317
UTAH - 3.3%
MUNICIPAL SECURITIES TRUST CERTIFICATES REVENUE VRDN,
3.70%, 5/6/13, LOC: BEAR STEARNS CAPITAL MARKETS
34,150,000 34,150,000
STATE GO BONDS, 4.50%, 7/1/09, BPA: MERRILL LYNCH
16,085,000 16,085,000
VERMONT - 0.6%
VERMONT STUDENT ASSISTANCE CORPORATION EDUCATION LOAN REVENUE BONDS:
4.50%, 12/15/00 5,785,000 5,785,000
4.80%, 12/15/00 3,015,000 3,015,000
WASHINGTON - 1.3%
PORT LONGVIEW IDA REVENUE VRDN, 4.90%, 12/1/19
4,420,000 4,420,000
STATE PUBLIC POWER SUPPLY SYSTEM REVENUE VRDN:
4.70%, 7/1/17, LOC: BANK OF AMERICA 9,685,000 9,685,000
6.875%, 7/1/17 5,900,000 6,148,281
WEST VIRGINIA - 0.3%
HARRIS COUNTY IDA REVENUE VRDN, 4.85%, 6/1/14,
LOC: SOCI T GENERALE 4,140,000 4,140,000
<PAGE>
PRINCIPAL
MUNICIPAL OBLIGATIONS - CONT'D AMOUNT VALUE
WISCONSIN - 0.7%
GRAFTON IDA REVENUE VRDN, 5.05%, 12/1/17,
LOC: FIRSTAR BANK, MILWAUKEE $2,795,000 $2,795,000
STATE HEALTH & EDUCATIONAL FACILITIES AUTHORITY REVENUE VRDN,
4.80%, 11/1/23, LOC: FIRSTAR BANK, MILWAUKEE
8,200,000 8,200,000
OTHER - 8.9%
ABN AMRO CHICAGO CORP. LEASE TOPS TRUST CERTIFICATES,
5.05%, 10/4/00, BPA: LASALLE BANK 18,129,524 18,129,524
4.82%, 3/1/10, BPA: ABN AMRO BANK, MBIA INSURED
17,585,000 17,585,000
CAPITAL REALTY INVESTORS TAX EXEMPT CERTIFICATES REVENUE VRDN,
5.05%, 2/1/04, BPA: UBS, AG 48,955,000 48,955,000
5.05%, 12/1/04, BPA: UBS, AG 23,865,000 23,865,000
IBM TAX EXEMPT GRANTOR TRUST, 5.02%, 2/15/06, GA: MERRILL LYNCH
22,450,000 22,450,000
PITNEY BOWES CORPORATION LEASETOPS TRUST CERTIFICATES VRDN,
4.99%, 10/10/01, BPA: PITNEY BOWES CREDIT 6,090,255 6,090,255
TOTAL INVESTMENTS (COST $1,529,114,896) - 99.8% 1,529,114,896
OTHER ASSETS AND LIABILITIES, NET - 0.2% 3,228,475
NET ASSETS - 100% $1,532,343,371
NET ASSETS CONSIST OF:
PAID IN CAPITAL APPLICABLE TO THE FOLLOWING SHARES OF BENEFICIAL INTEREST,
UNLIMITED NUMBER OF NO PAR SHARES AUTHORIZED:
CLASS O: 1,230,980,610 SHARES OUTSTANDING $1,230,868,262
INSTITUTIONAL CLASS: 262,236,647 SHARES OUTSTANDING
262,233,824
CLASS T: 39,473,491 SHARES OUTSTANDING 39,473,491
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) (5,365)
ACCUMULATED NET REALIZED GAIN (LOSS) ON INVESTMENTS (226,841)
NET ASSETS $1,532,343,371
NET ASSET VALUE PER SHARE
CLASS O (BASED ON NET ASSETS OF $1,230,679,527) $1.00
INSTITUTIONAL CLASS (BASED ON NET ASSETS OF $262,194,804) $1.00
CLASS T (BASED ON NET ASSETS OF $39,469,040) $1.00
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
LIMITED-TERM PORTFOLIO
STATEMENT OF NET ASSETS
JUNE 30, 2000
PRINCIPAL
MUNICIPAL OBLIGATIONS - 107.0% AMOUNT VALUE
ALABAMA - 2.2%
LINCOLN IDA SOLID WASTE DISPOSAL REVENUE
VRDN, 5.50%, 6/1/14, LOC: BANK OF AMERICA
$9,000,000 $9,000,000
MOBILE INDUSTRIAL DEVELOPMENT BUILDING REVENUE VRDN,
5.25%, 12/1/02 1,000,000 1,000,000
ARIZONA - 0.5%
GLENDALE COUNTY IDA REVENUE BONDS, 4.10%, 12/1/13,
LOC: DRESDNER BANK 2,150,000 2,105,366
ARKANSAS - 3.7%
SPRINGDALE IDA REVENUE VRDN, 5.25%, 10/13/00, IA: FGIC
16,500,000 16,498,185
CALIFORNIA - 8.4%
COMMUNITY COLLEGE FINANCING AUTHORITY BOND,
5.00%, 8/3/01, FSA INSURED 22,000,000 22,149,820
PITNEY BOWES CREDIT CORPORATION LEASE TOPS TRUST VRDN,
4.99%, 10/10/01, BPA: PITNEY BOWES CREDIT
13,200,000 13,200,000
SAN FRANCISCO CITY & COUNTY REDEVELOPMENT AGENCY VRDN,
4.45%, 10/1/00, LOC: CREDIT SUISSE 2,500,000 2,500,000
COLORADO - 3.6%
BOULDER COUNTY MULTIFAMILY HOUSING REVENUE VRDN,
5.35%, 12/25/31, LOC: CHASE MANHATTAN 7,000,000 7,000,000
DENVER CITY & COUNTY AIRPORT REVENUE BOND, 6.75%, 6/15/22,
ESCROWED IN US GOVERNMENT SECURITIES 1,995,000 2,121,024
DENVER CITY & COUNTY IDA REVENUE BOND,
4.90%, 7/1/11, LOC: CREDIT SUISSE 2,200,000 2,211,176
FORT COLLINS CO MULTIFAMILY HOUSING REVENUE VRDN,
5.35%, 12/25/31, LOC: CHASE MANHATTAN 5,000,000 5,000,000
DISTRICT OF COLUMBIA - 10.0%
GO BONDS:
5.50%, 6/1/01 17,650,000 17,773,200
5.50%, 6/1/01, FSA INSURED 2,000,000 2,017,260
5.10%, 6/1/02, FSA INSURED 5,055,000 5,085,987
DISTRICT OF COLUMBIA REVENUE VRDN, 6.00%, 8/15/38, FSA INSURED
20,000,000 20,000,000
FLORIDA - 1.7%
MIAMI DADE COUNTY SCHOOL BOARD CORP. BONDS, 5.00%, 8/1/01,
FSA INSURED 3,000,000 3,016,980
PALM BEACH HOUSING FINANCE AUTHORITY MALLARDS COVE REVENUE VRDN,
6.175%, 3/1/22, FIREMAN'S INSURANCE CO. INSURED
4,680,000 4,680,000
GEORGIA - 0.9%
COLUMBUS DOWNTOWN IDA REVENUE BOND, 6.50%, 7/1/29
3,900,000 3,873,246
<PAGE>
PRINCIPAL
MUNICIPAL OBLIGATIONS - CONT'D AMOUNT VALUE
ILLINOIS - 2.2%
BERWYN GO BONDS, 7.00%, 11/15/10, MBIA INSURED
$3,000,000 $3,085,890
STATE DEVELOPMENT FINANCE AUTHORITY WASTE DISPOSAL REVENUE BOND,
7.125%, 1/1/01 5,000,000 5,012,500
STATE EDUCATIONAL FACILITIES AUTHORITY REVENUE BONDS, 4.75%, 9/1/00
1,770,000 1,768,690
KENTUCKY - 2.9%
CALHOUN COUNTY ECONOMIC DEVELOPMENT COUNCIL REVENUE VRDN,
5.05%, 3/1/13, LOC: FNB BOSTON 2,000,000 2,000,000
CALVERT COUNTY POLLUTION CONTROL REVENUE VRDN:
6.00%, 2/1/07 1,000,000 1,000,000
5.40%, 7/1/23 3,000,000 3,000,000
IBERVILLE PARISH POLLUTION CONTROL REVENUE VRDN, 5.40%, 10/1/12
6,200,000 6,200,000
DEVELOPMENT FINANCE AUTHORITY VRDN, 4.95%, 2/1/08,
LOC: NATIONAL CITY BANK 1,000,000 1,000,000
LOUISIANA - 4.7%
HOUSING FINANCE AGENCY MORTGAGE REVENUE VRDN,
6.46%, 6/1/30, GIC: BAYER LANDSBK 6,320,000 6,320,000
PUBLIC FACILITIES AUTHORITY VRDN, 4.82%, 9/1/28,
LOC: BANK OF NEW YORK, CONF: HIBERNIA NATIONAL BANK
15,000,000 15,000,000
MARYLAND - 1.7%
BALTIMORE REVENUE BONDS, THE ZAMOISKI COMPANY PROJECT,
7.429%, 12/1/09 6,723,578 6,723,578
MONTGOMERY COUNTY ECONOMIC DEVELOPMENT BOND, 5.25%, 11/1/09,
LOC: ALLFIRST BANK 800,000 801,168
MICHIGAN - 0.9%
STATE BUILDING AUTHORITY REVENUE BONDS, 4.25%, 10/15/00
3,915,000 3,913,199
MINNESOTA - 3.3%
ARDEN HILLS HOUSING AND HEALTHCARE FACILITIES REVENUE VRDN,
4.33%, 9/1/29, LOC: US BANK - NAITONAL ASSOCIATION
7,980,000 7,980,000
ST. PAUL PORT AUTHORITY REVENUE BOND, 5.60%, 7/1/12
6,690,000 6,690,000
MISSISSIPPI - 3.9%
STATE HIGHWAY REVENUE BONDS, 4.50%, 6/1/01 17,370,000 17,388,412
MISSOURI - 0.9%
DEVELOPMENT FINANCE BOARD VRDN, 5.00%, 9/1/08,
LOC: MORGAN GUARANTY TRUST 4,000,000 4,000,000
NEBRASKA - 0.6%
UNIVERSITY OF NEBRASKA FACILITIES CORP. REVENUE BONDS, 4.25%, 7/15/00
2,525,000 2,524,773
NEW HAMPSHIRE - 1.2%
BUSINESS FINANCE AUTHORITY INDUSTRIAL FACILITY REVENUE
VRDN, 4.95%, 12/1/17, LOC: FIRSTAR BANK 5,500,000 5,500,000
STATE HIGHER EDUCATION & HEALTH REVENUE BONDS, 7.50%, 12/1/00
5,000 5,011
<PAGE>
PRINCIPAL
MUNICIPAL OBLIGATIONS - CONT'D AMOUNT VALUE
NEW YORK - 18.4%
DORMITORY AUTHORITY REVENUE BONDS, 5.00%, 2/15/00
$3,865,000 $3,873,619
NEW YORK CITY GO BONDS, 4.25%, 8/1/00 9,005,000 9,002,118
NEW YORK CITY IDA VRDN,
5.25%, 1/1/24, BPA: BANK OF NEW YORK 3,900,000 3,900,000
STATE COPS REVENUE BONDS,
4.75%, 2/1/01 13,635,000 13,645,635
4.00%, 3/1/01 5,830,000 5,799,976
5.00%, 3/1/01 14,680,000 14,716,993
STATE POWER AUTHORITY, 4.40%, 7/10/00 31,500,000 31,500,000
NORTH DAKOTA - 1.1%
THREE AFFILIATED TRIBES OF THE FORT BERTHOLD RESERVATION REVENUE BOND,
6.25%, 11/1/19 5,000,000 4,964,250
OHIO - 2.2%
WATER DEVELOPMENT AUTHORITY REVENUE BOND, 4.25%, 6/1/33
10,000,000 9,847,500
PENNSYLVANIA - 2.2%
STATE COPS BOND, 4.85%, 7/1/06, AMBAC INSURED
10,000,000 10,000,000
PUERTO RICO - 2.8%
COMMONWEALTH HIGHWAY AND TRANSPORTATION AUTHORITY REVENUE BONDS,
4.25%, 7/1/00 12,490,000 12,489,875
SOUTH CAROLINA - 2.7%
JOBS-ECONOMIC DEVELOPMENT AUTHORITY HEALTH REVENUE,
6.50%, 10/1/04 6,750,000 6,676,087
STATE EDUCATION ASSISTANCE AUTHORITY, 4.75%, 9/1/01
5,375,000 5,375,054
TENNESSEE - 1.0%
KNOX COUNTY HEALTH EDUCATIONAL & HOUSING FACILITIES BOARD
REVENUE VRDN, 5.45%, 12/1/29, LOC: FIRST TENNESSEE BANK
4,500,000 4,500,000
TEXAS - 2.6%
BRAZOS RIVER AUTHORITY REVENUE BONDS, 5.50%, 6/1/30
4,000,000 4,000,000
HARRIS COUNTY HEALTH FACILITIES DEVELOPMENT CORP. REVENUE
VRDN, 4.55%, 2/15/27, LOC: HELLER FINANCIAL,
BPA: MORGAN GUARANTY TRUST, NATIONS BANK & TORONTO-DOMINION
140,000 140,000
HARRIS COUNTY MFH HOUSING FINANCIAL CORP., 5.57%, 6/1/30,
LOC: HELLER FINANCIAL, BPA: MORGAN GUARANTY TRUST,
NATIONS BANK & TORONTO-DOMINION 5,500,000 5,500,000
STATE GO BONDS, 4.50%, 8/31/00 2,000,000 2,000,220
VERMONT - 3.5%
STUDENT ASSISTANCE CORP. PROMISSORY NOTES,
4.10%, 12/15/00 7,155,000 7,128,240
4.55%, 12/15/00 8,430,000 8,414,995
<PAGE>
PRINCIPAL
MUNICIPAL OBLIGATIONS - CONT'D AMOUNT VALUE
VIRGIN ISLANDS - 2.2%
PUBLIC FINANCE AUTHORITY REVENUE BONDS,
5.00%, 10/1/00 $1,000,000 $1,001,190
VIRGINIA - 1.2%
HENRY COUNTY, 5.00%, 7/6/01 5,375,000 5,376,290
WASHINGTON - 0.7%
PUBLIC POWER SUPPLY REVENUE BONDS, SERIES A, 7.30%, 7/1/00
3,000,000 3,000,210
WEST VIRGINIA - 5.1%
ECONOMIC DEVELOPMENT AUTHORITY COMMERCIAL REVENUE,
8.00%, 4/1/25 23,000,000 22,934,680
WISCONSIN - 3.6%
DE PERE IDA REVENUE BOND, 4.20%, 6/1/29 10,000,000 9,993,600
FOREST COUNTY POTAWATOMIE COMMUNITY, 5.75%, 12/15/04
2,130,000 2,068,464
STATE GO BONDS, 5.10%, 5/1/01 4,000,000 4,019,880
WYOMING - 0.9%
ALBANY COUNTY POLLUTION CONTROL REVENUE BOND, 5.10%, 12/1/15
4,100,000 4,094,178
OTHER - 5.5%
FORT MOJAVE INDIAN TRIBE OF ARIZONA, CALIFORNIA AND NEVADA PUBLIC
FACILITIES COMBINED LO AND REVENUE BONDS ADJUSTABLE RATE AND
TENDER SERIES A OF 1993, 12.50%,12/1/18 3,640,180 3,640,180
LEHMAN BROTHERS INC AS TRUSTOR- POOLED TRUST RECEIPTS VRDN,
5.30%, 7/1/12, LOC: BANK OF AMERICA,
LOC & BPA: INDUST BANK OF JAPAN 21,000,000 21,000,000
TOTAL INVESTMENTS (COST $480,355,270) - 107.0% 479,748,699
OTHER ASSETS AND LIABILITIES, NET - (7.0%) (31,321,177)
NET ASSETS - 100% $448,427,522
NET ASSETS CONSIST OF :
PAID IN CAPITAL APPLICABLE TO 42,136,165 SHARES OF BENEFICIAL INTEREST,
UNLIMITED NUMBER OF NO PAR SHARES AUTHORIZED: $449,404,605
UNDISTRIBUTED NET INVESTMENT INCOME 160,122
ACCUMULATED REALIZED GAIN (LOSS) ON INVESTMENTS (530,634)
NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS
(606,571)
NET ASSETS $448,427,522
NET ASSET VALUE PER SHARE $10.64
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
LONG-TERM PORTFOLIO
STATEMENT OF NET ASSETS
JUNE 30, 2000
PRINCIPAL
MUNICIPAL OBLIGATIONS - 102.3% AMOUNT VALUE
ARIZONA - 4.5%
MARICOPA COUNTY SCHOOL DISTRICT 69 GO BONDS, 6.25%, 7/1/14,
FSA INSURED $2,000,000 $2,190,320
CALIFORNIA - 2.2%
LOS ANGELES UNIFIED SCHOOL DISTRICT GO BONDS, 6.00%, 7/1/15,
FGIC INSURED 1,000,000 1,090,270
FLORIDA - 8.5%
DADE COUNTY GO BONDS, 7.75%, 10/1/18, AMBAC INSURED
2,000,000 2,501,980
DADE COUNTY IDA REVENUE BONDS, 8.00%, 6/1/22
1,600,000 1,666,592
GEORGIA - 8.4%
GO BONDS, 5.00%, 7/1/16 2,000,000 1,902,660
MUNICIPAL GAS AUTHORITY AND GAS REVENUE VRDN,
5.90%, 11/1/07, LOC: BANK OF AMERICA 2,200,000 2,199,951
ILLINOIS - 7.8%
DEVELOPMENT FINANCE AUTHORITY REVENUE BONDS, 5.75%, 5/15/14
2,000,000 2,019,360
DUPAGE COUNTY HIGH SCHOOL DISTRICT 87 GO BONDS, 5.10%, 12/1/20
2,000,000 1,835,420
LOUISIANA - 7.5%
LOCAL GOVERNMENT ENVIROMENTAL FACILITIES REVENUE BONDS,
6.30%, 7/1/30, AMBAC INSURED 2,000,000 2,117,080
PUBLIC FACILITY AUTHORITY MFH REVENUE BONDS, 7.00%, 6/1/24
1,630,000 1,567,815
MARYLAND - 4.5%
CAMBRIDGE ECONOMIC DEVELOPMENT REVENUE BONDS, 8.50%, 4/1/14
2,100,000 2,230,893
MASSACHUSETTS - 7.0%
GO BONDS, 5.25%, 8/1/18 2,000,000 1,929,740
WATER RESOURCE AUTHORITY REVENUE BONDS, 5.50%, 8/1/15,
FSA INSURED 1,500,000 1,521,465
MICHIGAN - 2.0%
STATE TRUNK LINE REVENUE BONDS, 5.50%, 11/1/18
1,000,000 990,810
NEW YORK - 11.4%
PORT AUTHORITY NEW YORK AND NEW JERSEY, CONSOLIDATED REVENUE BONDS,
6.12%, 6/1/94 2,500,000 2,634,300
STATE ENERGY RESOURCES AND DEVELOPMENT AUTHORITY,
5.15%, 3/1/16, MBIA INSURED 2,000,000 1,892,000
UTGO, 5.12%, 8/1/14, FGIC INSURED 1,100,000 1,060,917
<PAGE>
PRINCIPAL
MUNICIPAL OBLIGATIONS - CONT'D AMOUNT VALUE
NORTH CAROLINA - 3.6%
COMMUNITY HEALTH CARE FACILITY-DUKE UNIVERSITY, 4.75%, 6/1/21
$1,000,000 $849,990
EASTERN MUNICIPLE POWER AGENCY REVENUE BONDS, 4.50%, 1/1/24
1,040,000 893,360
OHIO - 4.3%
CUYAHOGA COUNTY HOSPITAL REVENUE BOND, 6.25%, 8/15/10,
MBIA INSURED 2,000,000 2,093,760
PUERTO RICO - 2.4%
COMMONWEALTH INFRASTRUCTURE FINANCING AUTHORITY VRDN,
4.42%, 7/1/28, BPA: BANK OF AMERICA 1,200,000 1,200,000
RHODE ISLAND - 1.2%
PORT AUTHORITY & ECONOMIC DEVELOPMENT CORP. AIRPORT
REVENUE BONDS, SERIES A, 7.00%, 7/1/14, FSA INSURED
500,000 569,605
TENNESSEE - 2.4%
KNOX COUNTY HEALTH EDUCATIONAL AND HOUSING FACILITIES
REVENUE BONDS, 5.75%, 1/1/14 1,175,000 1,199,358
TEXAS - 4.0%
TARRANT COUNTY HEALTH FACILITIES DEVELOPMENT CORP. REVENUE BONDS,
TEXAS HEALTH RESOURCES, 5.75%, 2/15/15, MBIA INSURED
2,000,000 1,968,800
VERMONT - 1.7%
EDUCATION & HEALTH BUILDINGS FINANCING AGENCY REVENUE BONDS,
5.00%, 11/1/38, 1,000,000 855,800
VIRGIN ISLANDS - 2.1%
PUBLIC FINANCE AUTHORITY REVENUE BOND, 6.37%, 10/1/19
1,000,000 1,006,260
VIRGINIA - 5.8%
CHESAPEAKE BAY BRIDGES AND TUNNEL, 5.50%, 7/1/25, MBIA INSURED
1,500,000 1,466,130
FAIRFAX COUNTY WATER AUTHORITY REVENUE BONDS, 5.00%, 4/1/21
1,500,000 1,371,330
WASHINGTON - 4.8%
CENTRAL PUGET SOUND REGIONAL TRANSPORTATION AUTHORITY, 5.25%, 2/1/21,
FGIC INSURED 2,500,000 2,358,775
WEST VIRGINIA - 5.4%
ECONOMIC DEVELOPMENT AUTHORITY REVENUE BONDS VRDN, 8.00%, 4/1/25
1,000,000 997,160
STATE HOUSING DEVELOPMENT FUND REVENUE BONDS, 5.05%, 5/1/14
1,780,000 1,670,797
<PAGE>
PRINCIPAL
MUNICIPAL OBLIGATIONS - CONT'D AMOUNT VALUE
OTHER - 0.8%
PITNEY BOWES CREDIT CORP. VRDN, 4.99%, 10/10/01,
BPA: PINEY BOWES CREDIT $400,000 $400,000
TOTAL INVESTMENTS (COST $50,909,381) - 102.3% 50,252,698
OTHER ASSETS AND LIABILITIES, NET - (2.3%) (1,107,909)
NET ASSETS 100% $49,144,789
NET ASSETS CONSIST OF:
PAID IN CAPITAL APPLICABLE TO THE FOLLOWING 3,144,688 SHARES OF
BENEFICIAL INTEREST, UNLIMITED NUMBER OF NO PAR VALUE SHARES AUTHORIZED:
50,921,404
UNDISTRIBUTED NET INVESTMENT INCOME 30,014
ACCUMULATED NET REALIZED GAIN (LOSS) ON INVESTMENTS (1,149,946)
NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS
(656,683)
NET ASSETS $49,144,789
NET ASSET VALUE PER SHARE $15.63
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
SIX MONTHS ENDED JUNE 30, 2000
MONEY MARKET LIMITED-TERM LONG-TERM
NET INVESTMENT INCOME PORTFOLIO PORTFOLIO PORTFOLIO
INVESTMENT INCOME:
INTEREST INCOME $32,855,399 $11,971,576 $1,442,368
EXPENSES:
INVESTMENT ADVISORY FEE 1,498,724 1,475,218 148,258
TRANSFER AGENCY FEES AND EXPENSES 963,191 130,542 15,992
DISTRIBUTION PLAN EXPENSES:
CLASS A - - 22,239
CLASS T 51,347 - -
TRUSTEES' FEES AND EXPENSES 78,279 27,574 2,484
ADMINISTRATIVE FEES:
CLASS O 1,630,420 - -
CLASS A - 19,804 1,961
INSTITUTIONAL CLASS 51,446 - -
CLASS T 53,401 - -
ACCOUNTING FEES 43,940 31,093 8,456
CUSTODIAN FEES 113,223 33,125 8,498
REGISTRATION FEES 28,457 20,130 9,325
REPORTS TO SHAREHOLDERS 139,359 26,920 4,102
PROFESSIONAL FEES 32,592 12,201 3,010
MISCELLANEOUS 37,721 10,157 1,497
TOTAL EXPENSES 4,722,100 1,786,764 225,822
FEES PAID INDIRECTLY (149,100) (51,704) (10,773)
NET EXPENSES 4,573,000 1,735,060 215,049
NET INVESTMENT INCOME 28,282,399 10,236,516 1,227,319
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS
NET REALIZED GAIN (LOSS) ON INVESTMENTS
(17,629) (278,652) (364,561)
CHANGE IN UNREALIZED APPRECIATION OR (DEPRECIATION)
- 540,987 1,402,627
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS (17,629) 262,335 1,038,066
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $28,264,770 $10,498,851 $2,265,385
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
MONEY MARKET PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31,
INCREASE (DECREASE) IN NET ASSETS 2000 1999
OPERATIONS:
NET INVESTMENT INCOME $28,282,399 $50,432,267
NET REALIZED GAIN (LOSS) (17,629) (266,565)
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 28,264,770 50,165,702
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME:
CLASS O SHARES (23,354,718) (39,960,319)
INSTITUTIONAL CLASS SHARES (4,234,640) (10,044,850)
CLASS T SHARES (721,675) (605,836)
TOTAL DISTRIBUTIONS (28,311,033) (50,611,005)
CAPITAL SHARE TRANSACTIONS:
SHARES SOLD:
CLASS O SHARES 763,599,665 1,654,910,623
INSTITUTIONAL CLASS SHARES 1,524,870,973 3,266,828,573
CLASS T SHARES 38,783,576 82,654,106
REINVESTMENT OF DISTRIBUTIONS:
CLASS O SHARES 23,026,349 39,057,337
INSTITUTIONAL CLASS SHARES 2,553,874 5,350,278
CLASS T SHARES 721,764 600,876
SHARES REDEEMED:
CLASS O SHARES (833,832,411) 1,770,984,377)
INSTITUTIONAL CLASS SHARES (1,502,775,993)(3,281,531,974)
CLASS T SHARES (37,090,014) (46,196,817)
TOTAL CAPITAL SHARE TRANSACTIONS (20,142,217) (49,311,375)
TOTAL INCREASE (DECREASE) IN NET ASSETS (20,188,480) (49,756,678)
NET ASSETS
BEGINNING OF PERIOD 1,552,531,851 1,602,288,529
END OF PERIOD (INCLUDING UNDISTRIBUTED NET INVESTMENT
INCOME (LOSS) OF ($5,365) AND $23,269, RESPECTIVELY)
$1,532,343,371 $1,552,531,851
<PAGE>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31,
CAPITAL SHARE ACTIVITY 2000 1999
SHARES SOLD:
CLASS O SHARES 763,599,665 1,654,910,623
INSTITUTIONAL CLASS SHARES 1,524,870,973 3,266,828,573
CLASS T SHARES 38,783,576 82,654,106
REINVESTMENT OF DISTRIBUTIONS:
CLASS O SHARES 23,026,349 39,057,337
INSTITUTIONAL CLASS SHARES 2,553,874 5,350,278
CLASS T SHARES 721,764 600,876
SHARES REDEEMED:
CLASS O SHARES (833,832,411)(1,770,984,377)
INSTITUTIONAL CLASS SHARES (1,502,775,993)(3,281,531,974)
CLASS T SHARES (37,090,014) (46,196,817)
TOTAL CAPITAL SHARE ACTIVITY (20,142,217) (49,311,375)
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
LIMITED-TERM PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31,
INCREASE (DECREASE) IN NET ASSETS 2000 1999
OPERATIONS:
NET INVESTMENT INCOME $10,236,516 $19,328,307
NET REALIZED GAIN (LOSS) (278,652) (270,725)
CHANGE IN UNREALIZED APPRECIATION OR (DEPRECIATION)
540,987 (3,679,858)
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 10,498,851 15,377,724
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME (10,145,746) (19,327,414)
NET REALIZED GAIN ON INVESTMENTS - (20,908)
TOTAL DISTRIBUTIONS (10,145,746) (19,348,322)
CAPITAL SHARE TRANSACTIONS:
SHARES SOLD 161,280,122 338,338,048
REINVESTMENT OF DISTRIBUTIONS: 8,767,740 16,228,878
SHARES REDEEMED (245,716,508) (374,065,345)
TOTAL CAPITAL SHARE TRANSACTIONS (75,668,646) (19,498,419)
TOTAL INCREASE (DECREASE) IN NET ASSETS (75,315,541) (23,469,017)
NET ASSETS
BEGINNING OF PERIOD 523,743,063 547,212,080
END OF PERIOD (INCLUDING UNDISTRIBUTED NET INVESTMENT
INCOME OF $160,122 AND $69,352, RESPECTIVELY)
$448,427,522 $523,743,063
CAPITAL SHARE ACTIVITY
SHARES SOLD 15,143,151 31,666,326
REINVESTMENT OF DISTRIBUTIONS 824,556 1,521,419
SHARES REDEEMED (23,069,058) (35,023,392)
TOTAL CAPITAL SHARE ACTIVITY (7,101,351) (1,835,647)
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
LONG-TERM PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31,
INCREASE (DECREASE) IN NET ASSETS 2000 1999
OPERATIONS:
NET INVESTMENT INCOME $1,227,319 $2,442,655
NET REALIZED GAIN (LOSS) (364,561) (786,588)
CHANGE IN UNREALIZED APPRECIATION OR (DEPRECIATION)
1,402,627 (4,280,900)
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 2,265,385 (2,624,833)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME (1,205,978) (2,435,609)
NET REALIZED GAIN ON INVESTMENTS - (245,663)
TOTAL DISTRIBUTIONS (1,205,978) (2,681,272)
CAPITAL SHARE TRANSACTIONS:
SHARES SOLD 852,899 8,428,904
REINVESTMENT OF DISTRIBUTIONS 1,013,331 2,272,572
SHARES REDEEMED (4,926,708) (11,926,958)
TOTAL CAPITAL SHARE TRANSACTIONS (3,060,478) (1,225,482)
TOTAL INCREASE (DECREASE) IN NET ASSETS (2,001,071) (6,531,587)
NET ASSETS
BEGINNING OF PERIOD 51,145,860 57,677,447
END OF PERIOD (INCLUDING UNDISTRIBUTED NET INVESTMENT
INCOME OF $30,014 AND $8,673, RESPECTIVELY)
$49,144,789 $51,145,860
CAPITAL SHARE ACTIVITY
SHARES SOLD 55,409 509,993
REINVESTMENT OF DISTRIBUTIONS 65,880 141,172
SHARES REDEEMED (320,131) (738,580)
TOTAL CAPITAL SHARE ACTIVITY (198,842) (87,415)
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 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, PERIODIC
<PAGE>
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, $419,477, $283,236, AND $32,831 WERE PAYABLE
AT PERIOD 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,
$282,322 AND $3,246 WERE PAYABLE AT PERIOD END FOR MONEY MARKET AND
LIMITED-TERM, RESPECTIVELY.
CALVERT DISTRIBUTORS, INC., AN AFFILIATE OF THE ADVISOR, IS THE DISTRIBUTOR AND
PRINCIPAL UNDERWRITER FOR THE FUND. DISTRIBUTION PLANS, ADOPTED BY CLASS T OF
MONEY MARKET AND LONG-TERM, ALLOW THE PORTFOLIO TO PAY THE DISTRIBUTOR FOR
EXPENSES AND SERVICES ASSOCIATED 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.
<PAGE>
THE DISTRIBUTOR RECEIVED $4,056 AND $3,121 AS ITS PORTION OF COMMISSIONS CHARGED
ON SALES OF LIMITED-TERM AND LONG-TERM, RESPECTIVELY. UNDER THE TERMS OF THE
AGREEMENT, $8,065 AND $3,618 WERE PAYABLE AT PERIOD END FOR MONEY MARKET AND
LONG-TERM, RESPECTIVELY.
CALVERT SHAREHOLDER SERVICES, INC. ("CSSI"), AN AFFILIATE OF THE ADVISOR, IS THE
SHAREHOLDER SERVICING AGENT FOR THE FUND. FOR ITS SERVICES, CSSI RECEIVES FEES
OF $515,266, $17,498, AND $1,862 FOR THE SIX MONTHS ENDED JUNE 30, 2000 FOR
MONEY MARKET, LIMITED-TERM AND LONG-TERM, RESPECTIVELY. UNDER THE TERMS OF THE
AGREEMENT, $81,108, $3,112, AND $317 WERE PAYABLE AT PERIOD END FOR MONEY
MARKET, LIMITED-TERM AND LONG-TERM, RESPECTIVELY. NATIONAL FINANCIAL DATA
SERVICES, INC., IS THE TRANSFER AND DIVIDEND DISBURSING AGENT.
EACH TRUSTEE WHO IS NOT AFFILIATED WITH THE ADVISOR RECEIVED AN ANNUAL FEE OF
$20,500 PLUS UP TO $1,500 FOR EACH BOARD AND COMMITTEE MEETING ATTENDED. TRUSTEE
FEES ARE ALLOCATED TO EACH OF THE FUNDS SERVED.
NOTE C - INVESTMENT ACTIVITY
DURING THE PERIOD, PURCHASES AND SALES OF INVESTMENTS, OTHER THAN SHORT-TERM
SECURITIES, WERE:
LIMITED-TERM LONG-TERM
PURCHASES $153,573,297 $15,358,549
SALES 232,930,719 9,383,890
MONEY MARKET HELD ONLY SHORT-TERM INVESTMENTS.
THE COST OF INVESTMENTS OWNED AT JUNE 30, 2000 WAS SUBSTANTIALLY THE SAME FOR
FEDERAL INCOME TAX AND FINANCIAL REPORTING PURPOSES FOR EACH PORTFOLIO. THE
FOLLOWING TABLE PRESENTS THE COMPONENTS OF NET UNREALIZED APPRECIATION
(DEPRECIATION) AS OF JUNE 30, 2000:
MONEY MARKET LIMITED-TERM LONG-TERM
UNREALIZED APPRECIATION - $31,174 $845,123
UNREALIZED DEPRECIATION - (637,745) (1,501,806)
NET - ($606,571) ($656,683)
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 PURSUANT TO RULE 17A-7 UNDER THE INVESTMENT
COMPANY ACT OF 1940.
NOTE D - LINE OF CREDIT
A FINANCING AGREEMENT IS IN PLACE WITH ALL CALVERT GROUP FUNDS (EXCEPT FOR THE
CALVERT SOCIAL INVESTMENT FUND MANAGED INDEX AND CVS AMERITAS INDEX 500
PORTFOLIOS) AND STATE STREET BANK AND TRUST COMPANY ("THE BANK"). UNDER THE
AGREEMENT, THE BANK IS PROVIDING AN UNSECURED LINE OF CREDIT FACILITY, IN THE
AGGREGATE AMOUNT OF $50 MILLION ($25 MILLION COMMITTED AND $25 MILLION
UNCOMMITTED), TO BE ACCESSED BY THE FUNDS FOR TEMPORARY OR EMERGENCY PURPOSES
ONLY. BORROWINGS UNDER THIS FACILITY BEAR INTEREST AT THE OVERNIGHT FEDERAL
FUNDS RATE PLUS .50% PER ANNUM. A COMMITMENT FEE OF .10% PER ANNUM WILL BE
INCURRED ON THE UNUSED PORTION OF THE COMMITTED FACILITY WHICH WILL BE ALLOCATED
TO ALL PARTICIPATING FUNDS.
THE MONEY MARKET AND LIMITED-TERM PORTFOLIOS HAD OUTSTANDING BORROWINGS OF
$1,160,000 AND $8,062,000 RESPECTIVELY, AT AN INTEREST RATE OF 7.125% AT JUNE
30, 2000. THE LONG-TERM PORTFOLIO HAD NO LOANS OUTSTANDING PURSUANT TO THIS LINE
OF CREDIT AT JUNE 30, 2000.
<PAGE>
MONEY MARKET PORTFOLIO
FINANCIAL HIGHLIGHTS
PERIODS ENDED
JUNE 30, DECEMBER 31, DECEMBER 31,
CLASS 0 SHARES 2000 1999 1998
NET ASSET VALUE, BEGINNING $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .019 .030 .032
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.019) (.030) (.032)
NET ASSET VALUE, ENDING $1.00 $1.00 $1.00
TOTAL RETURN 1.88% 3.04% 3.22%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME 3.72% (A) 2.97% 3.17%
TOTAL EXPENSES .67% (A) .65% .65%
EXPENSES BEFORE OFFSETS .67% (A) .65% .65%
NET EXPENSES .65% (A) .64% .64%
NET ASSETS, ENDING (IN THOUSANDS) $1,230,681 $1,277,935 $1,355,322
YEARS ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31,
CLASS O SHARES 1997 1996 1995
NET ASSET VALUE, BEGINNING $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .033 .033 .040
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.033) (.033) (.040)
NET ASSET VALUE, ENDING $1.00 $1.00 $1.00
TOTAL RETURN 3.38% 3.33% 4.02%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME 3.32% 3.28% 3.93%
TOTAL EXPENSES .65% .65% .62%
EXPENSES BEFORE OFFSETS .65% .65% .62%
NET EXPENSES .64% .64% .61%
NET ASSETS, ENDING (IN THOUSANDS) $1,405,350 $1,550,731 $1,740,839
<PAGE>
MONEY MARKET PORTFOLIO
FINANCIAL HIGHLIGHTS
PERIODS ENDED
JUNE 30, DECEMBER 31, DECEMBER 31,
INSTITUTIONAL CLASS/MMP 2000 1999 1998
NET ASSET VALUE, BEGINNING $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .020 .033 .035
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.020) (.033) (.035)
NET ASSET VALUE, ENDING $1.00 $1.00 $1.00
TOTAL RETURN 2.05% 3.39% 3.58%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME 4.12% (A) 3.36% 3.54%
TOTAL EXPENSES .32% (A) .31% .30%
EXPENSES BEFORE OFFSETS .32% (A) .31% .30%
NET EXPENSES .30% (A) .29% .29%
NET ASSETS, ENDING (IN THOUSANDS) $262,195 $237,544 $246,967
PERIODS ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31,
INSTITUTIONAL CLASS/MMP 1997 1996 1995^
NET ASSET VALUE, BEGINNING $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .031 .030 .008
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.031) (.030) (.008)
NET ASSET VALUE, ENDING $1.00 $1.00 $1.00
TOTAL RETURN 3.12% 2.68% .79%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME 3.37% 2.65% 3.19%(A)
TOTAL EXPENSES .63% 1.29% 1.35%(A)
EXPENSES BEFORE OFFSETS .63% 1.29% 1.35%(A)
NET EXPENSES .62% 1.28% 1.34%(A)
NET ASSETS, ENDING (IN THOUSANDS) $51,087 $33,160 $41,736
<PAGE>
MONEY MARKET PORTFOLIO
FINANCIAL HIGHLIGHTS
PERIODS ENDED
JUNE 30, DECEMBER 31,
CLASS T SHARES 2000 1999^^
NET ASSET VALUE, BEGINNING $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .018 .025
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.018) (.025)
NET ASSET VALUE, ENDING $1.00 $1.00
TOTAL RETURN* 1.77% 2.50%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME 3.52%(A) 2.90%(A)
TOTAL EXPENSES .87%(A) .85%(A)
EXPENSES BEFORE OFFSETS .87%(A) .85%(A)
NET EXPENSES .86%(A) .84%(A)
NET ASSETS, ENDING (IN THOUSANDS) $39,469 $37,053
<PAGE>
LIMITED-TERM PORTFOLIO
FINANCIAL HIGHLIGHTS
PERIODS ENDED
JUNE 30, DECEMBER 31, DECEMBER 31,
2000 1999 1998
NET ASSET VALUE, BEGINNING $10.64 $10.71 $10.70
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .22 .37 .40
NET REALIZED AND UNREALIZED GAIN (LOSS) - (.07) .01
TOTAL FROM INVESTMENT OPERATIONS .22 .30 .41
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.22) (.37) (.40)
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE
- (.07) .01
NET ASSET VALUE, ENDING $10.64 $10.64 $10.71
TOTAL RETURN* 2.10% 2.86% 3.87%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME 4.15%(A) 3.47% 3.70%
TOTAL EXPENSES .72%(A) .71% .71%
EXPENSES BEFORE OFFSETS .72%(A) .71% .71%
NET EXPENSES .70%(A) .70% .70%
PORTFOLIO TURNOVER 58% 78% 45%
NET ASSETS, ENDING (IN THOUSANDS) $448,428 $523,743 $547,212
YEARS ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31,
1997 1996 1995
NET ASSET VALUE, BEGINNING $10.69 $10.72 $10.59
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .42 .44 .45
NET REALIZED AND UNREALIZED GAIN (LOSS) .01 (.03) .13
TOTAL FROM INVESTMENT OPERATIONS .43 .41 .58
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.42) (.44) (.45)
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE
.01 (.03) .13
NET ASSET VALUE, ENDING $10.70 $10.69 $10.72
TOTAL RETURN* 4.07% 3.94% 5.55%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME 3.91% 4.12% 4.21%
TOTAL EXPENSES .70% .71% .71%
EXPENSES BEFORE OFFSETS .70% .71% .71%
NET EXPENSES .69% .70% .70%
PORTFOLIO TURNOVER 52% 45% 33%
NET ASSETS, ENDING (IN THOUSANDS) $490,180 $512,342 $457,707
<PAGE>
LONG-TERM PORTFOLIO
FINANCIAL HIGHLIGHTS
PERIODS ENDED
JUNE 30, DECEMBER 31, DECEMBER 31,
2000 1999 1998
NET ASSET VALUE, BEGINNING $15.30 $16.81 $17.28
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .38 .70 .78
NET REALIZED AND UNREALIZED GAIN (LOSS) .33 (1.44) .06
TOTAL FROM INVESTMENT OPERATIONS .71 (.74) .84
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.38) (.70) (.80)
NET REALIZED GAINS - (.07) (.51)
TOTAL DISTRIBUTIONS (.38) (.77) (1.31)
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE
.33 (1.51) (.47)
NET ASSET VALUE, ENDING $15.63 $15.30 $16.81
TOTAL RETURN * 4.68% (4.52%) 5.01%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME 4.97%(A) 4.35% 4.58%
TOTAL EXPENSES .91%(A) .88% .87%
EXPENSES BEFORE OFFSETS .91%(A) .88% .87%
NET EXPENSES .87%(A) .84% .84%
PORTFOLIO TURNOVER 22% 80% 72%
NET ASSETS, ENDING (IN THOUSANDS) $49,145 $51,146 $57,677
YEARS ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31,
1997 1996 1995
NET ASSET VALUE, BEGINNING $16.81 $17.31 $15.83
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .87 .93 .95
NET REALIZED AND UNREALIZED GAIN (LOSS) .50 (.46) 1.53
TOTAL FROM INVESTMENTS 1.37 .47 2.48
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.87) (.95) (.91)
NET REALIZED GAINS (.03) (.02) (.09)
TOTAL DISTRIBUTIONS (.90) (.97) (1.00)
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE
.47 (.50) 1.48
NET ASSET VALUE, ENDING $17.28 $16.81 $17.31
TOTAL RETURN * 8.41% 2.89% 16.05%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME 5.16% 5.50% 5.71%
TOTAL EXPENSES .87% .89% .87%
EXPENSES BEFORE OFFSETS .87% .89% .87%
NET EXPENSES .85% .86% .85%
PORTFOLIO TURNOVER 41% 41% 58%
NET ASSETS, ENDING (IN THOUSANDS) $50,966 $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 OCTOBER 2, 1995 INCEPTION.
^^ FROM MARCH 1, 1999 INCEPTION.
<PAGE>
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