A Note From The Chairman
Dear Investor,
This has been a very productive and rewarding 12 months for the Calvert
Social Investment Fund. We have continued to deepen our four-part philosophy of
social investing: social screening, special equity investments, shareholder
activism, and high social impact investments. Later this year, we look forward
to engaging you more promptly and directly in our activities as we launch our
new website.
While we applaud the economic policies that have helped sustain strong
national economic performance and good financial returns for our investors, we
are disappointed that this election has not engaged citizens in a substantive
debate about our future. We need to continue to build our own community so we
can more loudly articulate a bold social vision for a more progressive world.
Though winning elections might be about finding the middle of the road, one
might expect that a President would hope to leave a legacy that constitutes a
profile in courage, not compromise.
Special Equities
We added quite a few investments in smaller, new companies that are helping
to plant the seeds for a more sustainable future. Evergreen Solar makes
photovoltaic cells that facilitate the use of solar energy in remote areas,
cellular phones and street lights. Living Technologies creates waste treatment
plants that use organic, rather than chemical, processes to recycle water.
All-Media Solutions, run by a blind entrepreneur, is developing an internet
browser for the blind and software which enables companies to retrieve and
catalogue information from the internet.
The buoyant financial markets have been good to many of our small companies
that are going public or raising growth capital. Calypte Biomedical received FDA
approval for a urine-based AIDS test shortly after the company went public in
July. University On Line Publishing, Inc. (interactive educational software
distributed over the internet) and Aviron (nasal spray for flu vaccinations)
have both filed registration statements with the SEC and intend to go public.
High Social Impact Investments
The Fund puts aside one percent of assets for community initiatives. These
are typically offered at less-than-market-returns but are instrumental in
rebuilding urban and rural communities. One such investment is the Northeast
Entrepreneur Fund which helps welfare families in Northeast Minnesota become
self sufficient. Five years ago the Fund invested in Don and Ruth Young who were
looking for a way to support their eleven children. Don was able to turn his
hobby of woodworking into a full-time business after entering the Fund's
Self-Employment Demonstration Program where he learned business skills and
gained access to capital. Today his business, Young Country Wood 'N' Whatever,
is thriving. The company offers a catalogue with 40 products, employing two
full-time salespeople. The family received its last welfare check nearly two
years ago.
Shareholder Activism
The Fund has made significant inroads in its efforts to engage portfolio
companies in a dialogue for change. After several unsuccessful months of trying
to engage Morton International on environmental and safety issues, CSIF filed a
shareholder resolution with the company. Morton's CEO then agreed to our request
that the company issue a report on its environmental health and safety policies
and practices, so we withdrew our resolution.
We are also pleased that Sigma-Aldrich Corporation recently appointed its
first woman director, Dr. Nina Fedoroff, to the company's board of directors.
Last year CSIF filed a shareholder resolution requesting that the company
diversify its board to include women and minorities. We withdrew the resolution
when the company agreed to hire a search firm to assist in finding suitable
candidates.
On other fronts, we continue to work with officials at the Department of
Labor on the issue of sweatshop labor. We are also working with environmental
groups to expand the reporting on the release of toxic chemicals.
CSIF Website
I am pleased and proud to announce that a CSIF website will be launched
later this fall. The goals of the site are to showcase the accomplishments of
the Fund and to build our community of concerned investors. We want this site to
be for you, our shareholders, as well as anyone else who wants to learn more
about social investing. We view our site as a mechanism to create social and
intellectual ties as well as to identify kindred spirits and serve as a
crossroads for issues of corporate and social responsibility. You will receive a
mailing later this year that introduces the layout and gives the address of the
site.
Tobacco
During this past year, CSIF has become more active in the anti-tobacco
arena. We became the first corporate member of the National Center for Tobacco
Free Kids and attended President Clinton's signing of the Executive Order
placing additional restrictions on the tobacco industry's ability to market to
children. We have also created a new tool kit, Kicking the Habit: How to Get
Your Retirement Money Out of Tobacco. The kit explains how you can get a
tobacco-free retirement option at your place of work. To order a free copy,
please contact our Tobacco-Free Retirement Hotline at (800) 818-8397 or visit us
on-line at www.calvertgroup.com.
Saxton Bill
In my last report I discussed congressional legislation introduced by Jim
Saxton of New Jersey that sought to prohibit investors from choosing to include
their personal values in their pension by disallowing consideration of
non-financial issues. We appreciate the powerful response from all of you who
joined our call to action. I am pleased to report that the Saxton Bill, which
had passed the House of Representatives, stalled in the Senate and now appears
to be a dead issue, at least for this year.
Calvert Group
The Points of Light Foundation recently selected Calvert as one of seven
companies to receive its Excellence in Corporate Community Service Award. The
award was presented by Former President George Bush to Calvert Group President
and CEO Clifton S. Sorrell, Jr. Again this year, Calvert was recognized as one
of the 100 best companies for working mothers by Working Mother magazine, the
fourth year in a row.
Thank you again for your support in building this model of investment that
makes its choices with a view to the needs of future generations.
Sincerely,
D. Wayne Silby
Chairman, Board of Trustees
October 22, 1996
CALVERT SOCIAL INVESTMENT FUND
Dear Shareholder:
This annual report of the Calvert Social Investment Fund covers the
12-month period ended September 30, 1996. From the fourth quarter of 1995 into
the first quarter of 1996, the economy continued to expand at a modest pace. The
Federal Reserve maintained an easy monetary policy and, in late January, took
steps to lower short-term interest rates. In the second quarter of 1996, the
economy appeared to gain momentum, which heightened fears of inflation and
increased the likelihood of a rise in interest rates.
For the third quarter of 1996, economic growth appeared to moderate.
Reports of retail sales and personal consumption pointed to a benign level of
inflation. And, the most common indexes of price changes, the consumer price
index and producer price index, did not indicate a build up of inflationary
pressures.
Stocks closed the 12-month period with positive returns, as measured by the
Standard & Poor's 500 Stock Index, which generated a one-year return of 20%. The
stock market's overall gain masked substantial volatility from day-to-day.
Small-company stock price movements were even more frenzied. Long-term bonds, in
general, turned in flat or just slightly negative one-year returns. Money market
rates continued to slide during the final quarter of 1995 and into the first
quarter of 1996, then reversed course and moved higher on expectations of
tighter monetary policy.
Money Market Portfolio
Managed by Calvert Asset Management Company
The Portfolio's annualized yield remained in-line with the yield on an
average of similar funds. In anticipation of rising short-term interest rates,
the manager took steps to shorten the Portfolio's maturity over the past 12
months. The weighted average maturity was 46 days at the start of this reporting
period, 39 days at mid-point and 28 days at the close. The Portfolio's shorter
maturity means the manager is able to reinvest proceeds from maturing securities
more quickly.
The manager also committed a greater percentage of assets to variable rate
demand notes. Yields on variable rate demand notes are reset periodically to
correspond to changes in money market rates. These notes are payable on demand,
so they trade at par. The variable rate demand notes held in the Portfolio offer
a yield advantage of approximately 25 basis points over fixed-rate money market
securities. Yields are reset weekly, which keeps the Portfolio's yield
responsive to changes in short-term rates.
Bond Portfolio
Managed by United States Trust Company
In this difficult market environment, the Bond Portfolio generated a
one-year return of 3.96%, which is just ahead of the 3.91% return on an average
of similar funds.
The manager did not move to lengthen or shorten maturity significantly over
the one-year period. The Portfolio's weighted average maturity was 8.3 years at
the close of this reporting period, compared to 7.6 years, one year ago.
United States Trust Company continued to emphasize high-quality investments
and maintain a diversified investment strategy. At the close of this period, 85%
of the Portfolio's fixed-income securities were guaranteed or had Standard &
Poor's credit quality ratings of AAA, AA or A, the three highest credit quality
ratings.
During the period, the manager increased the Portfolio's holdings of
mortgage-backed securities from 20% of assets on September 30, 1995 to 28% on
September 30, 1996 to take advantage of their higher yields. Mortgage-backed
securities represent pools of individual mortgages. They are bundled together
and issued as fixed-income investments by U.S. Government agencies, such as the
Government National Mortgage Association (GNMA) or Federal National Mortgage
Association (FNMA) or by a private issuer. The market for these investments
makes financing available for home buyers.
Managed Growth Portfolio
The Portfolio's one-year return was positive but slightly behind the return
on an average of similar funds, due mainly to the Portfolio's weaker relative
performance in the first six months of this reporting period. In the most recent
six-month period, our performance was more closely in-line with the Portfolio's
benchmark.
The Managed Growth Portfolio is invested in equity and fixed-income
securities and utilizes a multi-manager approach to further enhance
diversification. United States Trust Company and Calvert Asset Management
Company each direct a portion of the roughly 45% of Portfolio assets committed
to fixed-income investments. United States Trust Company and NCM Capital
Management each manage a portion of the roughly 55% of Portfolio assets
committed to equity investments.
Just after the close of this reporting period, Calvert Asset Management
Company decided to allocate a portion of the Managed Growth Portfolio's assets
to Brown Capital Management, one of six investment managers whose services may
be utilized.
Equity and Fixed-Income Investments-United States Trust Company
In the last quarter of 1995, United States Trust Company held roughly 55%
of their portion of Portfolio assets in equity securities, which was slightly
less than their neutral equity weighting of 60%. Stocks performed well from
year-end 1995 through the second quarter of 1996, and this relative
underweighting was negative for performance. After stock prices dipped at
mid-year, United States Trust added to their stock holdings, bringing their
equity position closer to 60%. This boosted performance in the third quarter of
1996.
United States Trust Company focused on equity investments they believed
would perform better than the overall stock market in a slowing economy,
especially companies in the health care, financial services and consumer staples
sectors. The Portfolio benefited from good returns on investments in ADC
Telecommunications, a manufacturer of equipment that connects computers to
information networks, and Wolverine Tube, a manufacturer of copper condensers
used mainly in air conditioners. Wolverine Tube should benefit from increased
demand for its products as consumers look to replace older air conditioners with
models that meet guidelines for reducing CFC emissions.
Regarding their approach to the fixed-income market, United States Trust
Company continued to pursue a high-quality, diversified fixed-income strategy. A
greater percentage of assets were committed to mortgage-backed securities, as
these offered a yield advantage over Treasury securities and comparable
assurance of credit quality.
Fixed-Income Investments-Calvert Asset Management Company
Calvert Asset Management Company sought unique opportunities to enhance
yield that did not greatly increase the Portfolio's sensitivity to changes in
interest rates. The manager increased the Portfolio's exposure to corporate
bonds and added positions in taxable economic development revenue bonds.
Equity Investments-NCM Capital Management
NCM Capital uses a stock selection process that looks to identify
reasonably priced stocks with the potential to achieve well-above-average growth
rates. For this period, stock selection was the key reason this portion of the
Portfolio contributed strong returns. The Portfolio realized good gains from
investments in sectors that typically outperform the market in late stages of
bull markets, such as consumer staples and health care issues, but also found
winners within the consumer cyclicals group, especially among companies that
provide services to enhance efficiency and productivity. Investments in the
technology industry, which rebounded sharply in the last quarter covered by this
report, also boosted overall performance. Here, networking stocks, 3Com and
Cisco Systems and software companies, Computer Associates and BMC Software were
top performers.
One note about the Managed Growth Portfolio's international investments:
Although primarily a domestic fund, up to 25% of assets may be invested in
international investments in an attempt to enhance returns and increase
portfolio diversification. At period end, a total of 3.5% of assets were
committed to international investments. One of the Portfolio's equity holdings
is the South African company, Umbono Investment Corporation, which represents a
promising investment opportunity as well as a way to encourage economic
development in South Africa. Since our purchase of the stock in December of
1995, Umbono has advanced in local currency terms but has declined in dollar
terms due to the Rand's depreciation. Because this investment represents a small
portion of total assets, it did not have a tremendous effect on the Portfolio's
total return.
Equity Portfolio
Managed by Loomis, Sayles & Company
Going into this fiscal year, the Fund's manager had a favorable outlook for
stocks, and it appears that their optimism was well founded.
While the Equity Portfolio's six-month performance was above the returns on
the Index and an average of similar funds, we lagged the Index for the 12-month
period, due to our above-average weighting in the technology sector. Technology
stocks experienced a steep correction during the last quarter of 1995. Early in
1996, the manager modified his approach to technology stocks, reducing the
Portfolio's exposure to commodity driven issues and focusing on those companies
with proprietary products and leading market positions. Intel and Informix fit
these criteria, and both contributed good gains for this reporting period.
The manager's bottom-up stock selection process has identified attractive
investments across a diverse range of industries. Top performers this period
included Chase Manhattan Bank and Bank of America, which benefited from cost
cutting and a favorable interest rate climate; and retailers Intimate Brands and
Liz Claiborne, which were boosted by a rise in sales and more efficient
management of inventories. Specialty chemical manufacturer Praxair and the
consumer products company Colgate also added strong returns.
We would also like to advise you of the results of a shareholder vote on
May 15, 1996 to approve a new investment sub-advisory agreement with the
Portfolio's manager, Loomis, Sayles & Company. The new agreement is identical to
the existing agreement and was necessary only because of the acquisition of
Loomis, Sayles' parent company, New England Mutual Life, by Metropolitan Life
Insurance Company. The agreement was approved with 2,241,951.587 shares for,
37,731.759 shares against and 299,877.436 shares abstaining.
Outlook
Uncertainty over the strength of the economy and direction of interest
rates will likely continue to cause a high degree of volatility in the financial
markets. While we have a favorable opinion of opportunities in the stock and
bond markets, investors should approach the markets with expectations for
long-term gains, not short-term gains. We appreciate your investment in the
Calvert Social Investment Fund.
Sincerely,
Clifton S. Sorrell
Senior Vice President, Calvert Social Investment Fund
October 17, 1996
Portfolio Statistics
Ten Largest Holdings
as of September 30, 1996
% of Net Assets
- --------------------------------------------------------------------------------
Managed Growth Portfolio
Federal National Mortgage Assn.
(5.49% to 9.55%, with various maturity to 1/25/08) 6.12%
GNMA Single Family Mortgage Pool
(6.50% to 7.50%, with various maturity to 1/15/24) 4.48%
Repurchase Agreement, 5.74%, 10/1/96 4.41%
Federal Home Loan Mortgage Corp.
(5.125% to 6.80%, with various maturity to 5/1/11) 3.33%
Small Business Administration, 7.70%, 7/1/16 2.38%
Federal Nat'l Mortgage Assn. Single Family Mortgage Pool
(7.00% to 8.00%, with various maturity to 9/1/26) 2.09%
Federal Home Loan Bank Board, 6.32%, 12/4/97
(6.25% to 9.30%, with various maturity to 3/26/02) 2.03%
Albertson's, Inc. 1.71%
Johnson &Johnson 1.63%
American International Group, Inc. 1.61%
- --------------------------------------------------------------------------------
Total 29.79%
================================================================================
Ten Largest Stock Holdings
as of September 30, 1996
% of Net Assets
- -------------------------------------------------------------------------------
Equity Portfolio
Eckerd Corp. 3.09%
EMCCorp. 3.01%
Nokia Corp. 2.97%
American Greetings Corp. 2.87%
Nalco Chemical Co. 2.78%
Morton International, Inc. 2.70%
Black &Decker Corp. 2.68%
Premark International, Inc. 2.68%
Melville Corp. 2.62%
Limited, Inc. 2.62%
- -------------------------------------------------------------------------------
Total 28.02%
================================================================================
Portfolio Statistics
Maturity Schedule
% of Portfolio 9/30/96 3/31/96
- ------------------------------------------------------------------------------
Money Market Portfolio
1-60 Days 84% 79%
61-120 Days 10% 7%
121-180 Days 6% 14%
181-360 Days _ _
Weighted Average 28 days 39 days
Bond Portfolio
Less Than 1 Year 10% 5%
1-3 Years 5% 9%
3-5 Years 18% 16%
5-7 Years 12% 20%
7-10 Years 12% 11%
10-20 Years 5% 6%
20 Years and Above 38% 33%
Weighted Average 13 years 12 years
Average Annual Total Returns
for periods ended September 30, 1996
Inception Since
Class A Shares Date 1 Year 5 Year 10 Year Inception
- ------------------------------------- -----------------------------------------
Money Market 10/82 4.88% 3.90% 5.47% 6.40%
Bond 8/87 .04% 5.96% N/A 8.08%
Managed Growth 10/82* 5.02% 7.77% 8.77% 10.85%
Equity 8/87** 11.10% 6.70% N/A 7.09%
Inception Since
Class C Shares Date 1 Year Inception
- ---------------------------------- ----------------------------------------
Bond 3/94 2.58% 3.11%
Managed Growth 3/94* 8.85% 7.80%
Equity 3/94 14.85% 5.66%
* New sub-advisors assumed management of the Portfolio effective July,
1995.** New sub-advisors assumed management of the Portfolio effective February,
1994.
Report of Independent Accountants
To the Board of Trustees and Shareholders
of Calvert Social Investment Fund:
We have audited the accompanying statements of net assets of Calvert Social
Investment Fund (comprised of the Money Market, Managed Growth, Bond and Equity
Portfolios), as of September 30, 1996, the related statements of operations for
the year then ended, the statements of changes in net assets for each of the two
years in the period then ended and the financial highlights for each of the
three years in the period then ended. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits. The financial highlights for each of the respective years
in the period ended September 30, 1993, were audited by other auditors whose
report dated October 29, 1993, expressed an unqualified opinion thereon.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of investments owned as of
September 30, 1996, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of the
respective portfolios comprising the Calvert Social Investment Fund as of
September 30, 1996, and the results of their operations for the year then ended,
the changes in their net assets for each of the two years in the period then
ended and financial highlights for each of the three years in the period then
ended, in conformity with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Baltimore, Maryland
November 8, 1996
U.S. Government Agencies Principal
and Instrumentalities - 9.5% Amount Value
- --------------------------------------------------------------------------------
Federal Home Loan Bank Corp., 5.33%, 1/30/97 $2,000,000 $1,964,171
Federal Home Loan Mortgage Corp., 5.35%, 10/3/96 3,000,000 2,999,108
Federal Home Loan Mortgage Corp., 5.42%, 10/4/96 2,000,000 1,999,097
Federal National Mortgage Assn., 5.22%, 10/24/96 2,000,000 1,993,330
Federal National Mortgage Assn., 5.36%, 10/28/96 3,000,000 2,987,940
Federal National Mortgage Assn., 5.45%, 12/9/96 2,000,000 1,979,108
Federal National Mortgage Assn., 5.50%, 1/21/97 2,000,000 1,965,778
- --------------------------------------------------------------------------------
Total U.S. Government Agencies and Instrumentalities
(Cost $15,888,532) 15,888,532
- ------------------------------------------------------------------------------
Certificates of Deposit - 0.7%
- ----------------------------- -------------------------------------------
Broadway Federal Savings & Loan, 5.25%, 8/20/97 (^) 100,000 100,000
Community Capital Bank, 4.50%, 1/21/97 (^) 100,000 100,000
Elk Horn Bank & Trust, 5.33%, 12/18/96 (^) 100,000 100,000
Family Savings Bank, 5.20%, 8/15/97 (^) 100,000 100,000
First Community Bank, 5.00%, 4/22/97 (^) 100,000 100,000
First State Bank of Oklahoma, 5.40%, 4/22/97 (^) 100,000 100,000
Founders National Bank, 5.20%, 8/28/97 (^) 100,000 100,000
Seaway National Bank Chicago, IL, 5.10%, 1/27/97 (^) 100,000 100,000
Self Help Credit Union, 5.05%, 7/15/97 (^) 100,000 100,000
Shore Bank & Trust, 5.25%, 12/20/96 (^) 100,000 100,000
South Shore Bank of Chicago, 5.50%, 10/30/96 (^) 100,000 100,000
- --------------------------------------------------------------------------------
Total Certificates of Deposit (Cost $1,100,000) 1,100,000
Commercial Paper - 19.7%
- --------------------------------------------------------------------------------
Accor SA, 5.35%,11/26/96,LOC:NationalBanque ofParis 2,000,000 1,983,356
Duke University, 5.39%, 11/21/96 4,000,000 3,969,457
Franciscan Services,5.33%,10/16/96, LOC:
Toronto-Dominion 2,000,000 1,995,558
New York City General Obligation Bonds, 5.60%,
11/15/96, LOC: Societe Generale 3,500,000 3,500,000
New York City General Obligation Bonds, 5.80%, 2/14/97,
LOC: Societe Generale 3,500,000 3,500,000
Northwestern University, 5.33%, 11/8/96 2,000,000 1,988,748
Oak Funding Corp., 5.42%, 10/31/96 2,000,000 1,990,967
Oak Funding Corp., 5.43%, 11/12/96 3,000,000 2,980,995
Oak Funding Corp., 5.48%, 11/18/96 2,000,000 1,985,386
Southwest Gas Corp., 5.37%, 10/11/96, LOC:
Union Bank of Switzerland 2,000,000 1,997,017
Western Medical Services, 5.50%, 10/11/96, LOC:
Fuji Bank Ltd. 7,000,000 6,989,305
- -------------------------------------------------------------------------------
Total Commercial Paper (Cost $32,880,789) 32,880,789
Principal
Corporate Notes - 2.3% Amount Value
- -------------------------------- -------------------------------------------
Abbey NationalTreasuryServices PLC, 7.80%, 12/16/96 $3,800,000 $3,816,299
- --------------------------------------------------------------------------------
Total Corporate Notes (Cost $3,816,299) 3,816,299
Municipal Notes - 4.6%
- ----------------------------------------------------------------------------
New York General Obligation Bonds, 6.00%, 2/1/97 2,670,000 2,669,090
New York General Obligation Bonds, 5.67%, 3/15/97 5,000,000 4,994,666
- --------------------------------------------------------------------------------
Total Municipal Notes (Cost $7,663,756) 7,663,756
Taxable Variable Rate
Demand Notes - 52.9%
Alabama H/M Partners LLC Community Development VRDN,
5.90%, 10/01/20, LOC: Amsouth Bank 4,900,000 4,900,000
Alabama State Industrial Development Revenue VRDN,
5.70%, 12/1/19, LOC: Chemical Bank 3,700,000 3,700,000
Alabama State Industrial Development Revenue VRDN,
5.55%, 5/1/10, LOC: First Alabama 6,000,000 6,000,000
Aspen Institute Inc. VRDN, 5.66%, 12/1/04, LOC: First National
Bank of Maryland 2,960,000 2,960,000
Barton Healthcare LLC, 5.55%, 2/15/25, LOC: American National
Bank & Trust 800,000 800,000
Chapel Oaks Inc. Revenue VRDN, 5.65%, 10/1/26, LOC:
Allied Irish Bank 7,200,000 7,200,000
Detroit General Obligation VRDN, 5.55%, 5/1/06, LOC:
Sumitomo Bank Ltd. 3,100,000 3,100,000
Gardena Certificates of Participation VRDN, 5.90%, 7/1/25, LOC:
Dai-Ichi Kangyo Bank 7,960,000 7,960,000
Health Midwest Ventures Group VRDN, 5.70%, 8/1/19, LOC:
Fuji Bank, Ltd. 900,000 900,000
Illinois Housing Development Authority VRDN, 5.538%, 11/1/21,
TOA: Citibank, AMBAC Insured 1,945,000 1,945,000
Illinois Housing Development Authority VRDN, 5.488%, 6/1/22,
TOA: Citibank, AMBAC Insured 1,600,000 1,600,000
Illinois Village of Schaumburg General Obligation VRDN, 5.55%,
12/1/20, BPA: Credit Suisse 4,850,000 4,850,000
Iowa Finance Authority Economic Development Revenue VRDN,
5.60%, 3/1/11, LOC: Rabobank Nederland 5,450,000 5,450,000
Liliha Partners Revenue VRDN 6.05%, 8/1/24, LOC:
First Hawaiian Bank 4,000,000 4,000,000
Mahoning County Multi-Family Housing Revenue VRDN, 5.88%,
11/1/98, LOC: PNC Bank 200,000 200,000
New Jersey Economic Development Authority VRDN, 5.70%, 8/1/14,
LOC: National Westminster Bank 1,440,000 1,440,000
Oxnard Finance Authority Lease Revenue VRDN, 5.55%, 6/1/06,
LOC: Union Bank of California 3,500,000 3,500,000
Physicians Plus Medical Group VRDN, 5.70%, 8/1/16, LOC:
Marshall & Ilsley Bank 5,850,000 5,850,000
Sault Sainte Marie Tribe Building Authority Revenue VRDN, 6.19%,
6/1/03, LOC: First America Bank of Michigan 8,000,000 8,000,000
Taxable Variable Rate Principal
Demand Notes (Cont'd) Amount Value
- -------------------------------------------------------------------------------
TLC Holdings LLC VRDN, 5.70%, 6/1/26, LOC:
Columbus Bank & Trust $3,975,000 $3,975,000
Virginia State Housing Development Authority Revenue VRDN,
5.60%, 3/1/02 6,400,000 6,400,000
W.L. Petrey Wholesaling, Inc. VRDN, 5.70%, 3/1/08, LOC:
Southtrust Bank of Alabama 3,350,000 3,350,000
- --------------------------------------------------------------------------------
Total Taxable Variable Rate Demand Notes(Cost $88,080,000) 88,080,000
Repurchase Agreements - 9.7%
- --------------------------------------------------------------------------------
Donaldson, Lufkin, Jenrette:
5.70%, dated 9/30/96, due 10/1/96
(Collateral: $8,964,178 Federal National Mortgage Assn., 5.64%, 9/3/97)
(Collateral: $7,666,396 Federal Home Loan Mortgage Corp.,
7.00%, 6/5/00) 16,100,000 16,100,000
- ------------------------------------------------------------------------------
Total Repurchase Agreements (Cost $16,100,000) 16,100,000
TOTAL INVESTMENTS (Cost $165,529,376) - 99.4% 165,529,376
Other assets and liabilities, net - 0.6% 986,946
- -----------------------------------------------------------------------------
Net Assets - 100% $166,516,322
================================================================================
Net Assets Consist of:
- -------------------------------------------------------------------------------
Paid-in capital applicable to 166,568,646 shares of beneficial interest;
unlimited number of no par value shares authorized $166,564,669
Undistributed net investment income 863
Accumulated net realized gain (loss) on investments (49,210)
- --------------------------------- -------------------------------------------
Net Assets $166,516,322
================================== ===========================================
Net Asset Value Per Share $1.00
U.S. Government Agencies Principal
and Instrumentalities - 22.8% Amount Value
- --------------------------------------------------------------------------------
Federal Farm Medium Term Notes, 6.75%, 5/14/99 $3,500,000 $3,511,410
Federal Home Loan Bank Board, 6.32%, 12/4/97 5,000,000 5,024,950
Federal Home Loan Bank Board, 9.30%, 1/25/99 3,000,000 3,194,370
Federal Home Loan Bank Board, 6.25%, 9/27/01 3,000,000 2,941,980
Federal Home Loan Bank Board, 7.33%, 3/29/02 1,000,000 1,028,410
Federal Home Loan Mortgage Corp., 6.80%, 5/14/99 7,000,000 7,032,270
Federal Home Loan Mortgage Corp., 6.485%, 10/3/05 5,000,000 4,821,350
Federal Home Loan Mortgage Corp., 6.50%, 10/15/05 1,438,000 1,424,612
Federal Home Loan Mortgage Corp., 5.125%, 8/15/06 4,958,096 4,828,789
Federal Home Loan Mortgage Corp., 5.50%, 5/1/11 2,077,736 1,925,811
Federal National Mortgage Assn., 9.20%, 6/10/97 3,000,000 3,074,100
Federal National Mortgage Assn., 9.55%, 11/10/97 6,000,000 6,235,680
Federal National Mortgage Assn., 8.15%, 5/11/98 7,000,000 7,222,530
Federal National Mortgage Assn., 5.49%, 10/2/03 10,000,000 9,286,500
Federal National Mortgage Assn., 6.58%, 3/1/06 7,000,000 6,681,150
Federal National Mortgage Assn., 6.50%, 1/25/08 4,306,151 4,270,237
Federal National Mortgage Assn. Remic 1994-79B,
7.00%, 12/25/19 . 2,000,000 1,933,700
Federal National Mortgage Assn. Single Family Mortgage Pool,
7.00%, 8/1/25 3,817,881 3,689,028
Federal National Mortgage Assn. Single Family Mortgage Pool,
7.00%, 5/1/26 4,024,785 3,883,918
Federal National Mortgage Assn. Single Family Mortgage Pool,
8.00%, 9/1/26 4,939,526 4,979,635
Financing Corp., 9.65%, 11/2/18 1,500,000 1,869,240
Financing Corp., 8.60%, 9/26/19 6,000,000 6,809,220
GNMA Single Family Mortgage Pool, 7.50%, 2/15/23 4,060,442 4,035,063
GNMA Single Family Mortgage Pool, 7.50%, 4/15/23 3,816,915 3,793,059
GNMA Single Family Mortgage Pool, 7.50%, 7/15/23 1,141,214 1,132,655
GNMA Single Family Mortgage Pool, 6.50%, 11/15/23 6,651,399 6,264,820
GNMA Single Family Mortgage Pool, 6.50%, 12/15/23 4,538,760 4,274,969
GNMA Single Family Mortgage Pool, 6.50%, 1/15/24 7,878,732 7,440,454
Small Business Administration, 7.70%, 7/1/16 14,100,000 14,315,730
- -----------------------------------------------------------------------------
Total U.S. Government Agencies and Instrumentalities
(Cost $136,653,691) 136,925,640
- --------------------------------------------------------------------------------
Certificates of Deposit - 0.3%
- --------------------------------------------------------------------------------
Alternatives Federal Credit Union, 5.50%, 11/18/96 (^) 50,000 50,000
Banco Solidario, 10.0625%, 8/3/97 (#) 301,617 301,617
Blackfeet National Bank, 5.50%, 11/13/96 (^) 92,000 92,000
D. Edward Wells Federal Credit Union, 5.50%, 11/20/96 (^) 50,000 50,000
First American Credit Union, 5.294%, 12/23/96 (^) 92,000 92,000
Mission Area Federal Credit Union, 5.00%, 11/18/96 (^) 50,000 50,000
Principal
Certificates of Deposit (Cont'd) Amount Value
- --------------------------------------------------------------------------------
Northeast Community Federal Credit Union, 4.75%, 11/18/96 (^) $50,000 $50,000
South Shore Bank of Chicago, 5.40%, 12/6/96 (^) 100,000 100,000
South Shore Bank of Chicago, 5.20%, 2/10/97 750,000 750,000
- --------------------------------------------------------------------------------
Total Certificates of Deposit (Cost $1,535,617) 1,535,617
Convertible Debenture Bonds - 0.1%
- ------------------------------------------------------------------------------
Ultrafem, Inc., 10.00%, 7/27/97 (#) 125,000 281,001
WorldWater, Inc., 9.00%, 9/28/97 (#) 150,000 150,000
- ------------------------------------------------------------------------------
Total Convertible Debenture Bonds (Cost $275,000) 431,001
Community Loan Notes - 0.8%
- -------------------------------------------------------------------------------
Accion International Corp., 4.00%, 1/13/97 250,000 245,207
Accion US Bridge Fund, 4.00%, 1/12/01 100,000 98,083
Boston Community Loan Fund, 4.00%, 1/12/01 500,000 490,415
Capital District Community Loan, 3.50%, 1/13/97 35,000 34,329
Cascadia Revolving Fund, 3.50%, 4/7/98 75,000 72,453
Catholic Relief Services, 3.50%, 9/30/97 50,000 49,990
Chicago Community Loan Fund, 3.50%, 6/30/98 75,000 71,407
Coastal Enterprises, Inc., 2.50%, 6/30/99 100,000 94,872
Community Reinvestment Fund, 3.50%, 4/4/97 100,000 96,370
Co-op Fund of New England, Inc., 4.00%, 1/13/97 90,000 88,275
Delaware Valley Community Reinvestment Fund,
3.50%, 6/30/99 75,000 71,407
Eastside Community Investment, 2.50%, 4/4/97 100,000 96,604
Ecumenical Development Corp., 5.00%, 12/31/01 100,000 98,551
Enterprise Loan Fund, 3.50%, 6/30/98 50,000 47,436
Environmental Enterprises, Inc., 4.00%, 6/28/99 125,000 119,012
Federation of Appalachian Housing Enterprise,
4.00%, 1/13/97 200,000 196,166
First State Community Loan Fund, 4.00%, 1/15/99 25,000 24,520
Foundation for International Community Asst.,
3.50%, 4/30/01 50,000 48,185
Housing Assistance Council, 4.00%, 6/30/97 75,000 71,407
Institute for Community Economics, 4.00%, 1/13/00 150,000 147,124
Interfaith Housing Delaware, 4.00%, 9/30/97 50,000 49,990
Low Income Housing Fund, 4.00%, 1/13/99 50,000 49,041
Low Income Housing Fund, 3.50%, 9/30/99 100,000 99,980
Manna, Inc., 4.00%, 9/30/97 150,000 149,970
Mcauley Institute, 4.00%, 1/13/97 85,000 83,370
Mercy Housing Inc., 4.00%, 1/12/01 100,000 98,083
Michigan Housing Trust, 4.00%, 6/28/99 100,000 95,210
Micro Industry Credit Rural Corp., 4.00%, 1/13/97 50,000 49,041
Minnesota Non Profit Assistance Fund, 3.50%, 4/7/00 200,000 192,740
Montana Women's Capital, 4.00%, 6/28/99 50,000 47,605
National Fed of Community Development Credit Union,
2.50%, 4/7/98 300,000 288,408
New Hampshire Community Loan Fund, 4.00%, 7/15/99 250,000 238,025
New Mexico Community Loan Fund, 3.50%, 6/30/98 25,000 23,802
Nonprofit Facilities Fund, 3.50%, 6/30/99 100,000 95,210
North Country Co-op Development Fund, 4.00%, 1/12/01 100,000 98,083
Northeast Entrepreneur Fund, 3.50%, 6/30/98 50,000 47,436
Northeast South Dakota Energy Conservation Corp.,
4.00%, 1/13/97 25,000 24,520
Principal
Community Loan Notes (Cont'd) Amount Value
- --------------------------------------------------------------------------------
Opportunity International, 3.50%, 9/30/99 $100,000 $99,980
Sage Bruno, 6.00%, 12/31/99 150,000 150,000
Saint Ambrose Housing Center, 4.00%, 9/30/97 50,000 49,990
SIDI, 3.00%, 6/30/97 150,000 141,294
12th Street Historic Rehabilitation Associates Mortgage,
Zero Coupon, 10/15/96 365,147 90,956
Vermont Community Loan Fund, 4.00%, 4/30/01 200,000 193,208
Western Massachusetts Enterprise Fund, 4.00%, 9/30/98 50,000 49,990
Women's Self-Employment Loan Fund, 4.00%, 9/30/97 50,000 49,990
Worcester Community Loan Fund, 4.00%, 4/30/97 25,000 24,151
- --------------------------------------------------------------------------------
Total Community Loan Notes (#)(Cost $5,249,817) 4,841,886
Corporate Bonds - 10.7%
- ------------------------------------------------------------------------------
Advanta Mortgage Loan Trust Remic 1993-4 A1,
5.50%, 3/25/10 3,637,367 3,438,449
AON Corp., 6.875%, 10/1/99 1,000,000 1,005,240
BellSouth Savings & Security, 9.19%, 7/1/03 1,074,747 1,160,823
Cardinal Health, Inc., 6.00%, 1/15/06 5,000,000 4,594,350
Clean Air Cab, 6.00%, 12/31/98 (#) 250,000 124,818
Conseco, Inc., 8.125%, 2/15/03 8,385,000 8,534,001
Dean Witter Discover and Co., 6.30%, 1/15/06 3,000,000 2,774,700
Deluxe Corp., 8.55%, 2/15/01 500,000 531,210
Discover Card, 6.05%, 8/18/08 2,500,000 2,310,972
Donnelly, R.R., and Sons, Co., 6.70%, 7/5/05 3,000,000 2,907,060
First Union Corp., 6.55%, 10/15/35 3,500,000 3,319,120
International Business Machine Corp.,
7.00%, 10/30/25 10,000,000 9,221,400
Kaiser Foundation Hospitals, 7.63%, 4/19/99 2,000,000 2,052,760
Michigan Bell Telephone Co., 9.25%, 11/15/98 1,000,000 1,055,630
National Association of People with AIDS,
10.00%, 7/31/97 (#)(b) 250,000 166,650
National Cooperative Bank, Series 1993-3 B,
6.67%, 1/1/99 (#) 2,592,435 2,451,672
Norwest Financial, Inc., 6.8752%, 12/15/99 2,000,000 2,012,380
Physicians Plus Medical Group VRDN, 5.70%, 8/1/16 2,000,000 2,000,000
Poland Partners, 5.875%, 4/13/04 (#) 405,062 234,602
Puget Power Conservation Grantor Trust,
6.45%, 4/11/05 5,033,692 4,936,976
Snap On, Inc., 6.625%, 10/1/05 2,500,000 2,420,075
Southern California Gas, 6.50%, 12/15/97 2,500,000 2,509,225
Take the Lead, 9.00%, 9/27/00 (#) 100,000 100,000
Vendee Mortgage Trust, 6.75%, 4/15/22 3,000,000 2,700,937
Wachovia Corp., 7.00%, 12/15/99 2,000,000 2,020,620
- --------------------------------------------------------------------------------
Total Corporate Bonds (Cost $66,400,161) 64,583,670
Municipal Obligations - 4.4%
- --------------------------------------------------------------------------------
Chickasaw Nation Certificates of Participation,
10.00%, 8/1/03 5,855,000 5,968,938
Maryland State Economic Development Corp. Revenue Bonds,
8.00%, 10/1/05 3,000,000 2,986,680
Principal
Municipal Obligations (Cont'd) Amount Value
- --------------------------------------------------------------------------------
Maryland State Economic Development Corp. Revenue Bonds,
8.625%, 10/1/19 $3,000,000 $3,041,640
Miami Beach Redevelopment Agency Tax Increment
Revenue Bonds, 8.80%, 12/1/15 6,000,000 6,265,200
Rochester, New York, 6.05%, 8/15/02 2,000,000 1,922,920
Texas State General Obligation Bonds,
6.85%, 12/1/15 2,260,000 2,100,760
Texas State General Obligation Bonds,
7.35%, 12/1/21 1,995,000 1,879,649
Virginia State Housing Development Authority
Bonds, 7.90%, 1/1/16 2,000,000 2,007,580
- --------------------------------------------------------------------------------
Total Municipal Obligations (Cost $26,119,225) 26,173,367
Sovereign Debt - 0.5%
- -------------------------------------------------------------------------------
South Africa Republic, 9.625% 12/15/99 3,000,000 3,165,006
- --------------------------------------------------------------------------------
Total Sovereign Debt (Cost $3,038,390) 3,165,006
Repurchase Agreements - 4.4%
- ---------------------------------------------------------------- ----------
Union Bank of Switzerland, 5.74%, dated 9/30/96, due 10/1/96
(Collateral: $27,126,227 Federal Home Loan Mortgage Corp.,
7.00%, 9/1/25) 26,500,000 26,500,000
- -------------------------------- -------------------------------------------
Total Repurchase Agreements (Cost $26,500,000) 26,500,000
Limited Partnership Interests - 0.3%
- --------------------------------------------------------------------------------
Environmental Allies Investment Trust 51,038
Environmental Private Equity Fund II (*) 109,579
Global Environment Emerging Markets Fund (*) 767,154
Hambrecht & Quist Environmental Technology Fund (*) 356,726
HFG Expansion Fund I 91,250
Liberty Environmental Partners (*) 350,000
Poland Partners (*) 146,000
Ukraine Fund (*) 47,371
- -------------------------------------------------------------------------------
Total Limited Partnership Interest (#)(Cost $2,089,508) 1,919,118
Equity Securities - 57.9% Shares
- --------------------------------------------------------------------------------
Automotive - 0.6%
Honda Motors, Ltd. (ADR) 70,000 3,543,750
- ------------------------------------------------------------------------------
Basic Industries - 3.0%
Minerals Technologies, Inc. 50,000 1,868,750
Praxair, Inc. 182,900 7,864,700
Sigma Aldrich 107,400 6,121,800
Wolverine Tube 50,000 2,150,000
- ------------------------------------------------------------------------------
18,005,250
- --------------------------------------------------------------------------------
Equity Securities (Cont'd) Shares Value
Business Equipment & Services - 1.8%
Automatic Data Processing, Inc. 80,000 $3,490,000
Hewlett Packard Co. 121,850 5,940,187
Miller Herman, Inc. 23,000 931,500
Phamis, Inc.(*) 40,000 670,000
- -------------------------------------------------------------------------------
11,031,687
- --------------------------------------------------------------------------------
Building, Construction & Furnishing - 1.1%
Champion Enterprises, Inc. 130,000 2,941,250
Granite Construction, Inc. 60,000 1,245,000
Oakwood Homes Corp. 81,900 2,252,250
- --------------------------------------------------------------------------------
6,438,500
Capital Goods - 3.2%
AptarGroup, Inc. 140,000 4,497,500
Avery Dennison Corp. 48,615 2,698,132
Deere & Co. 80,000 3,360,000
Dover Corp. 56,200 2,683,550
Holophane Corp.(*) 37,500 703,125
Illinois Tool Works, Inc. 55,000 3,966,875
Stanley Works 50,000 1,406,250
- -------------------------------------------------------------------------------
19,315,432
Consumer Products and Services - 4.6%
Amway Japan, Ltd. (ADR) 58,565 1,244,506
Children's Discovery Centers of America (*) 100,000 650,000
Colgate Palmolive Co. 40,300 3,501,062
CPC International 48,500 3,631,438
CUC International, Inc. (*) 69,700 2,779,287
Gillette Co. 69,600 5,019,900
Hershey Foods Corp. 58,500 2,939,625
McCormick & Co., Inc 78,500 1,834,937
Odwalla, Inc. 35,879 636,852
Sealed Air Corp. (*) 46,525 1,733,056
Wrigley (Wm.) Jr. Co. 60,000 3,615,000
- -------------------------------------------------------------------------------
27,585,663
Energy - 0.4%
Barrett Resources Corp. 70,000 2,467,500
- ------------------------------------------------- ----------------------------
Financial Services - 11.1%
Aflac, Inc. 110,872 3,935,973
American International Group, Inc. 95,812 9,653,059
Bank of Boston Corp. 66,150 3,828,431
Bank of New York, Inc. 100,400 2,949,250
BankAmerica Corp. 43,400 3,564,225
Federal National Mortgage Assn. 220,220 7,680,172
Fifth Third Bancorp 75,000 4,359,375
Greentree Financial Corp. 91,000 3,571,750
Equity Securities (Cont'd) Shares Value
- ------------------------------------------------ ---------------------------
Financial Services (Cont'd)
MGIC Investment Corp. 29,200 $1,967,350
Norwest Corp. 155,000 6,335,625
Price (T. Rowe) Associates, Inc. 180,000 5,850,000
Sunamerica, Inc. 107,600 3,712,200
Umbono Investments (*)(a) 2,850,429 6,597,488
United Asset Management Corp. 125,000 2,953,125
- --------------------------------------------------------------------------------
66,958,023
Industrial Products - 0.3%
Nokia Corp. (ADR)(*) 40,000 1,770,000
- --------------------------------------------------------------------------------
Media & Publishing - 2.1%
Carmike Cinemas, Inc. 75,000 1,734,375
Disney (Walt) Co. 28,295 1,793,196
Lancit Media Productions Ltd. (*) 65,000 682,500
Reuters Holdings Plc (ADR) 53,800 3,725,650
Scholastic Corp. (*) 65,000 4,712,500
- ------------------------------ --------------------------------------------
12,648,221
Merchandising & Retail - 5.9%
Albertson's, Inc. 244,435 10,296,824
Barnes & Noble, Inc. 78,000 2,681,250
Consolidated Stores Corp.(*) 48,695 1,947,800
Home Depot, Inc. 75,000 4,265,625
Jones Apparel Group, Inc.(*) 28,750 1,832,813
May Department Stores Co. 80,000 3,890,000
Office Max, Inc. 229,700 3,215,800
Price CostCo, Inc.(*) 190,000 3,895,000
Viking Office Products, Inc. 103,100 3,093,000
- --------------------------------------------------------------------------------
35,118,112
- --------------------------------------------------------------------------------
Pharmaceutical & Health Care - 9.8%
Amgen (*) 145,340 9,174,587
Becton Dickinson & Co. 78,960 3,493,980
Boston Scientific Corp. (*) 72,625 4,175,937
Cardinal Health, Inc. 45,600 3,767,700
Guidant Corp. 33,600 1,856,400
Healthcare Compare Corp.(*) 67,700 3,207,288
Invacare Corp. 90,000 2,520,000
Johnson & Johnson 191,200 9,799,000
Medtronic, Inc. 74,900 4,802,962
Merck & Co., Inc. 112,500 7,917,187
Schering Plough Corp. 70,000 4,305,000
Shared Medical Systems Corp. 15,000 855,000
United Healthcare Corp. 50,000 2,081,250
Vertex Pharmaceuticals, Inc. 30,000 885,000
- -------------------------------------------------------------------------------
58,841,291
Equity Securities (Cont'd) Shares Value
Technology - 6.8%
ADC Telecommunications, Inc. 30,000 $1,920,000
Atmel Corp. 101,400 3,130,725
BMC Software, Inc.(*) 16,405 1,304,197
Cisco Systems, Inc. 109,600 6,802,050
Computer Associates International, Inc. 43,325 2,588,669
EMC Corp.(*) 121,780 2,755,272
L.M. Ericsson (ADR) 143,165 3,632,811
Microsoft Corp.(*) 44,660 5,889,537
Oracle Systems Corp.(*) 91,442 3,892,000
Sun Microsystems, Inc.(*) 55,530 3,449,801
US Robotics, Inc. 30,300 1,958,137
3Com Corp.(*) 63,100 3,789,944
- ------------------------------------------------------------------------------
41,113,143
Transportation - 1.6%
British Airways (*) 17,000 1,451,375
Comair Holdings, Inc. 169,150 3,975,025
Federal Express Corp. (*) 23,095 1,830,278
Norfolk Southern Corp. 25,000 2,284,375
- -------------------------------------------------------------------------------
9,541,053
- --------------------------------------------------------------------------------
Utilities - 4.5%
Ameritech Corp. 57,390 3,020,149
California Energy, Inc. (*) 125,000 3,984,375
Century Telephone Enterprises 106,175 3,649,765
MCI Communications Corp. 180,000 4,612,500
SBC Communications, Inc. 151,400 7,286,125
360 Communications Co. 142,400 3,346,400
Vodafone Group, Plc. 40,000 1,365,029
- ------------------------------- --------------------------------------------
27,264,343
Venture Capital - 1.1%
All Media Solutions, Inc.(#)(*) 307,692 200,000
Aviron (#)(*) 370,370 500,000
Calypte Biomed (#)(*) 100,000 787,500
Clean Air Cab (#)(*) 80 0
Coastal Venture Partners (#)(*) 80,000 80,000
Community Bank of the Bay (#)(*) 4,000 100,000
Community Growth Fund (#) 1,156,288 451,384
Earths Best Stock (#)(*) 67,500 32,009
Eastern Utilities Associates (#)(*) 3,049 25,727
Eco Timber International, Inc.(#)(*) 12,468 99,993
Energia Global, Inc., Series A,
Convertible Preferred (#)(*) 72,986 364,930
Energia Global, Inc., Series B,
Convertible Preferred (#)(*) 28,571 142,855
Evergreen Solar (#)(*) 100,000 150,000
Fountainhead Technologies, Inc., Preferred (#)(*) 250,000 250,000
Knowaste Technologies, Inc. (#)(*) 432 215,667
Knowaste Technologies, Inc., Class A, Preferred (#)(*) 31 22,759
Living Technologies, Inc. (#)(*) 25,000 100,000
Paradigm Biosciences (#)(*) 125,000 250,000
Equity Securities (Cont'd) Shares Value
- ------------------------------ --------------------------------------------
Venture Capital (Cont'd)
Pro Fund International (#)(*) 4,553 $4,553
Pro Fund International, Preferred (#)(*) 450,723 450,723
Quadrant Healthcare Plc. (#)(*) 305,263 386,645
Security Dynamics Technologies, Inc.(#)(*) 513 36,808
University Online, Inc. (#)(*) 266,668 355,468
USA Waste Services, Inc.(#)(*) 1,026 32,319
Ultrafem, Inc. (warrants)(#)(*) 175,000 1,194,527
Wild Planet Toys, Inc., Series B, Preferred (#)(*) 476,190 357,142
Wind Harvest Co., Inc., Series A, Preferred (#)(*) 8,696 99,565
- --------------------------------------------------------------------------------
6,690,574
Total Equity Securities (Cost $272,310,528) 348,332,542
- --------------------------------- --------------------------------------------
TOTAL INVESTMENTS (Cost $540,171,937) - 102.2% 614,407,847
Other assets and liabilities, net - (2.2%) (13,210,504)
- --------------------------------------------------------------------------------
Net Assets - 100% $601,197,343
================================ ===========================================
Net Assets Consist of:
- --------------------------------------------------------------------------------
Paid-in capital applicable to the following shares of beneficial interest;
unlimited number of no par shares authorized:
Class A: 18,963,836 shares outstanding $501,061,097
Class C: 216,259 shares outstanding 6,423,189
Undistributed net investment income 375,282
Accumulated net realized gain (loss) 19,101,865
Net unrealized appreciation (depreciation) on investments 74,235,910
- --------------------------------------------------------------------------------
Net assets $601,197,343
================================== ============================================
Net Asset Value per Share
- --------------------------------------------------------------------------------
Class A (based on net assets of $594,482,152) $31.35
================================================================================
Class C (based on net assets of $6,715,191) $31.05
U.S. Government Agencies Principal
And Instrumentalities - 48.7% Amount Value
- -------------------------------- --------------------------------------------
Federal Home Loan Bank Board, 7.28%, 2/24/98 $2,000,000 $2,033,940
Federal Home Loan Bank Board, 8.50%, 3/28/06 200,000 220,650
Federal Home Loan Mortgage Corp., 7.28%, 5/8/00 1,000,000 1,011,780
Federal Home Loan Mortgage Corp., 7.95%, 2/15/20 358,597 363,933
Federal Home Loan Mortgage Corp.
Discount Note, 10/7/96 2,000,000 1,998,267
Federal National Mortgage Assn., 0%, 11/1/01
(callable 11/1/96 @ 100) 1,000,000 995,470
Federal National Mortgage Assn., 5.49%, 10/2/03 2,000,000 1,857,300
Federal National Mortgage Assn., 6.82%, 8/23/05 1,500,000 1,481,475
Federal National Mortgage Assn., 8.20%, 3/10/16 500,000 546,800
Federal National Mortgage Assn., 8.95%, 2/12/18 500,000 587,990
Federal National Mortgage Assn., 0%, 10/9/19 5,000,000 923,150
Federal National Mortgage Assn.
Discount Notes, 10/21/96 1,000,000 996,940
Federal National Mortgage Assn. Remic, 163-H,
7.20%, 2/25/11 300,000 297,618
Federal National Mortgage Assn. Remic, 171-PE,
6.60%, 4/25/17 1,495,000 1,484,744
Federal National Mortgage Assn. Remic, 146-PH,
7.50%, 9/25/19 1,000,000 993,610
Federal National Mortgage Assn. Remic, 185-G,
7.15%, 8/25/20 1,000,000 977,390
Financing Corp., 9.80%, 4/06/18 5,500,000 6,930,770
Government National Mortgage Assn.,
8.50%, 1/15/06 89,133 91,277
Government National Mortgage Assn.,
8.50%, 7/15/08 545,551 563,183
Government National Mortgage Assn.,
8.50%, 8/15/08 185,538 191,626
Government National Mortgage Assn.,
8.50%, 9/15/08 141,639 146,287
Government National Mortgage Assn.,
8.50%, 10/15/08 45,634 47,131
Government National Mortgage Assn.,
8.50%, 9/15/09 18,457 19,114
Government National Mortgage Assn.,
7.50%, 6/15/23 700,399 695,146
Government National Mortgage Assn.,
7.50%, 8/15/25 675,641 668,378
Government National Mortgage Assn.,
7.50%, 9/15/25 963,949 953,587
Government National Mortgage Assn.,
7.50%, 11/15/25 1,007,686 996,853
Government National Mortgage Assn.,
7.50%, 1/15/26 1,007,492 994,899
Government National Mortgage Assn.,
7.50%, 2/15/26 1,004,602 992,045
Government National Mortgage Assn.,
7.50%, 6/15/26 1,007,656 995,061
- --------------------------------------------------------------------------------
Total U.S. Government Agencies and Instrumentalities
(Cost $31,078,764) 31,056,414
- --------------------------------------------------------------------------------
Corporate Bonds - 29.3%
- --------------------------------- --------------------------------------------
AMR Corp., 9.75%, 3/15/00 450,000 486,175
AMR Corp., 10.57%, 1/15/01 200,000 224,138
Albertson's, Inc., 6.18%, 3/22/00 500,000 492,350
Becton Dickinson, 7.875%, 12/15/96 200,000 200,970
BellSouth Savings & Security, 9.125%, 7/1/03 200,453 215,256
Bell Telephone Co. of Pennsylvania, 6.125%, 3/15/03 500,000 478,345
Deluxe Corp., 8.55%, 2/15/01 200,000 212,484
Disney (Walt) Co., 6.75%, 3/30/26 1,000,000 968,620
Enron Corp., 9.125%, 4/1/03 500,000 549,980
Heinz (H.J.) Co., 6.875%, 1/15/03 300,000 299,178
Household Affinity, 7.00%, 12/15/99 500,000 503,618
Principal
Corporate Bonds (Cont'd) Amount Value
- --------------------------------------------------------------------------------
Kaiser Permanente, 7.42%, 4/13/98 $1,600,000 $1,628,480
Liberty Mutual Capital Corp., 7.90%, 3/14/03 1,000,000 1,016,833
Limited, Inc., 9.125%, 2/1/01 500,000 529,560
Lincoln National Corp., 7.625%, 7/15/02 500,000 511,740
Masco Corp., 5.25%, 2/15/12 200,000 189,000
May Department Stores Co., 9.875%, 12/1/02 200,000 227,300
McGraw Hill, Inc., 9.43%, 9/1/00 300,000 326,316
Mediq, Inc., 12.125%, 7/1/99 250,000 269,685
Michigan Bell Telephone Co., 9.25%, 11/15/98 300,000 316,689
Mountain State Telephone & Telegraph, 9.50%, 5/1/00 300,000 325,068
National Cooperative Bank, 6.06176%, 7/1/12 777,731 726,439
New England Telephone, 5.05%, 10/1/98 500,000 488,200
Norwest Corp., 6.00%, 3/15/00 500,000 489,645
Pacific Bell Telephone, 6.25%, 3/1/05 500,000 472,495
Paine Webber Trust, 9.00%, 10/20/03 1,000,000 1,015,760
Payless Cashways, Inc., 9.125%, 4/15/03 650,000 422,500
Piedmont Aviation, Inc., 9.55%, 5/8/98 100,000 97,875
Pitney Bowes Credit Corp., 8.625%, 2/15/08 250,000 276,025
Polaroid Corp., 8.00%, 3/15/99 800,000 818,768
Prudential Home Mortgage Sec. Co., 7.50%, 2/25/23 3,013,602 3,048,619
Quaker Oats, Co., 8.85%, 11/15/96 250,000 251,000
United Air Lines, Inc., 10.67%, 5/1/04 500,000 577,850
- --------------------------------------------------------------------------------
Total Corporate Bonds (Cost $18,582,063) 18,656,961
Municipal Obligations - 16.8%
- ---------------------------- n --------------------------------------------
Atlanta Downtown Development Authority Revenue Bonds,
6.875%, 2/1/21 650,000 606,138
California State General Obligation Bonds,
8.15%, 9/1/01, 500,000 1,576,965
Conneaut School District General Obligation Bonds,
6.60%, 5/1/04 400,000 390,660
Connecticut State General Obligation Bonds,
6.00%, 1/15/03 350,000 332,727
Harrisburg, Pennsylvania, U.S. Government Guaranteed Notes,
7.14%, 8/1/02 90,000 91,661
Missouri Higher Education Student Loan Revenue Bonds,
6.80%, 2/15/01 1,000,000 999,150
Montgomery County Hospital District Revenue Bonds,
8.30%, 4/1/02 400,000 405,160
Nassau County, New York, U.S. Government Guaranteed Notes,
7.12%, 8/1/01 450,000 457,654
New York State Environmental General Obligation Bonds,
7.65%, 5/1/99 800,000 818,656
New York State Job Development Authority Revenue Bonds,
7.70%, 3/1/03 1,500,000 1,530,240
Newburgh, New York, U.S. Government Guaranteed Notes,
7.12%, 8/1/01 110,000 111,871
Oregon State General Obligation Bonds,
7.75%, 7/1/05 490,000 508,154
Pompano Beach, Florida, U.S. Government Guaranteed Notes,
7.12%, 8/1/01 565,000 574,610
San Diego County Pension Obligation Bonds,
6.38%, 8/15/03 700,000 663,789
Scranton, Pennsylvania, U.S. Government Guaranteed Notes,
7.12%, 8/1/01 425,000 432,229
Principal
Municipal Obligations (Cont'd) Amount Value
- -------------------------------------------------------------------------------
Scranton, Pennsylvania, U.S. Government Guaranteed Notes,
7.14%, 8/1/02 $100,000 $101,845
Silver Spring Metro Center, 6.875%, 5/15/13 650,000 596,405
Somerville, Massachusetts, U.S. Government Guaranteed Notes,
7.12%, 8/1/01 475,000 483,090
- --------------------------------------------------------------------------------
Total Municipal Obligations (Cost $10,639,535) 10,681,004
Sovereign Debt - 0.4%
- -----------------------------------------------------------------------------
South Africa Republic, 9.625%, 12/15/99 250,000 263,750
- ------------------------------ --------------------------------------------
Total Sovereign Debt (Cost $246,106) 263,750
Repurchase Agreements - 4.6%
- -------------------------------- --------------------------------------------
Union Bank of Switzerland, 5.74%, dated 9/30/96, due 10/1/96
(Collateral: $2,968,383 Federal National Mortgage Assn.,
7.00%, 3/1/26) 2,900,000 2,900,000
- --------------------------------------------------------------------------------
Total Repurchase Agreements (Cost $2,900,000) 2,900,000
Equity Securities - 1.9% Shares
- --------------------------------------------------------------------------------
Financial Services - 0.3%
Great Western Financial Corp., $50.00, Convertible Preferred 6,617 175,351
- --------------------------------------------------------------------------------
Energy - 1.6%
Northern Borders Partners, LP (#) 41,000 1,055,750
- --------------------------------------------------------------------------------
Total Equity Securities (Cost $1,059,414) 1,231,101
TOTAL INVESTMENTS (Cost $64,505,882) - 101.7% $64,789,230
Other assets and liabilities, net - (1.7%) (1,089,027)
- --------------------------------------------------------------------------------
Net Assets - 100% $63,700,203
=============================================================================
Net Assets Consist of:
- -------------------------------------------------------------------------------
Paid-in capital applicable to the following shares of beneficial interest;
unlimited number of no par shares authorized:
Class A: 3,876,256 shares outstanding $62,758,522
Class C: 90,669 shares outstanding 1,449,323
Undistributed net investment income 109,558
Accumulated net realized gain (loss) (900,548)
Net unrealized appreciation (depreciation) on investments 283,348
- --------------------------------------------------------------------------------
Net assets $63,700,203
===============================================================================
Net Asset Value per Share
- --------------------------------- -------------------------------------------
Class A (based on net assets of $62,258,713) $16.06
================================= ===========================================
Class C (based on net assets of $1,441,490) $15.90
Equity Securities - 94.9% Shares Value
- -------------------------------------------------------------------------------
Business Equipment & Services - 3.3%
Digital Equipment Corp. (*) 47,000 $1,680,250
International Business Machines Corp. 14,500 1,805,250
- ---------------------------------------------------------------------------
3,485,500
Basic Industries - 7.2%
Morton International, Inc. 71,000 2,822,250
Nalco Chemical Co. 80,100 2,903,625
Praxair, Inc. 41,700 1,793,100
- -------------------------------------------------------------------------------
7,518,975
Building, Construction & Furnishing - 2.0%
Masco Corp. 69,000 2,070,000
- --------------------------------------------------------------------------------
Consumer Products - 14.9%
American Greetings Corp. 104,500 2,991,312
Black & Decker Corp. 67,400 2,797,100
Colgate Palmolive Co. 23,000 1,998,125
CPC International, Inc. 35,000 2,620,625
Premark International, Inc. 148,000 2,793,500
Tupperware Corp. 48,000 2,352,000
- ------------------------------ --------------------------------------------
15,552,662
Energy - 2.2%
Enron Corp. 94,000 2,338,250
- -------------------------------------------------------------------------------
Financial Services - 11.9%
BankAmerica Corp. 30,000 2,463,750
Chase Manhattan Corp. 30,000 2,403,750
Chubb Corp. 54,000 2,484,000
Dean Witter Discover & Co. 45,000 2,475,000
USF&G Corp. 140,000 2,590,000
- ----------------------------------------------------------------------------
12,416,500
Industrial Products - 5.6%
Dover Corp. 10,500 501,375
Measurex Corp. 85,000 2,241,875
Nokia Corp. (ADR)(*) 70,000 3,097,500
- --------------------------------------------------------------------------------
5,840,750
Paper Products - 2.4%
Alco Standard Corp. 49,500 2,468,812
- --------------------------------------------------------------------------------
Pharmaceutical & Health Care - 2.6%
Merck & Co., Inc. 38,000 2,674,250
- --------------------------------------------------------------------------
Equity Securities (Cont'd) Shares Value
- -----------------------------------------------------------------------------
Retail - 17.2%
Eckerd Corp.(*) 115,000 $3,220,000
Federated Department Stores, Inc.(*) 75,000 2,512,500
General Nutrition Companies, Inc.(*) 150,000 2,634,375
Limited, Inc. 143,000 2,734,875
Liz Claiborne, Inc. 70,000 2,607,500
Melville Corp. 62,000 2,735,750
Reebok International, Ltd.(*) 1,000 34,750
Sunglass Hut International, Inc.(*) 92,000 1,466,250
- -------------------------------------------------------------------------------
17,946,000
Technology - 13.9%
Adobe Systems, Inc. 57,000 2,123,250
DSC Communications, Inc. (*) 99,800 2,495,000
E M C Corp. (*) 139,000 3,144,875
Informix Corp.(*) 87,000 2,425,125
Intel Corp. 24,000 2,290,500
Symantec Corp. (*) 185,000 2,011,875
- -------------------------------------------------------------------------------
14,490,625
Transportation - 6.9%
AMR Corp.(*) 31,000 2,468,375
Southwest Airlines Co.(*) 100,000 2,287,500
US Freightways Corp. 117,000 2,398,500
- ----------------------------------------------------------------------------
7,154,375
Utilities - 4.8%
Ameritech Corp. 50,000 2,631,250
Pacific Telesis Group 71,000 2,387,376
- --------------------------------------------------------------------------------
5,018,626
Total Equity Securities (Cost $87,951,068) - 94.9% 98,975,325
Repurchase Agreements - 4.6%
- ------------------------------- --------------------------------------------
Union Bank of Switzerland, 5.74%, dated 9/30/96, due 10/1/96
(Collateral: $4,913,356 Federal National Mortgage Assn.,
7.00%, 3/1/26) 4,800,000 4,800,000
- -------------------------------- --------------------------------------------
Total Repurchase Agreements (Cost $4,800,000) 4,800,000
TOTAL INVESTMENTS (Cost $92,751,068) - 99.5% $103,775,325
Other assets and liabilities, net - 0.5% 564,106
Net Assets - 100% $104,339,431
================================================================================
Net Assets Consist of: Shares Value
- --------------------------------------------------------------------------------
Paid-in capital applicable to the following shares of beneficial interest;
unlimited number of no par shares authorized:
Class A: 4,495,780 shares outstanding $84,882,118
Class C: 138,013 shares outstanding 2,745,775
Undistributed net investment income 36,595
Accumulated net realized gain (loss) 5,650,686
Net unrealized appreciation (depreciation) on investments 11,024,257
- --------------------------------------------------------------------------------
Net assets $104,339,431
================================================================================
Net Asset Value per Share
- -------------------------------------------------------------------------------
Class A (based on net assets of $101,343,732) $22.54
================================================================================
Class C (based on net assets of $2,995,699) $21.71
Net Investment Income
- ------------------------------------------------------------------------------
Investment Income
Interest income $9,134,396 $18,613,941
Dividend income (net of foreign taxes withheld
of $67,454
for Managed Growth) _ 3,682,524
- -------------------------------- --------------------------------------------
Total investment income 9,134,396 22,296,465
Expenses
Investment advisory fee 809,573 4,054,218
Transfer agency fees and expenses 647,180 1,035,494
Distribution Plan expenses:
Class A _ 1,361,666
Class C _ 52,406
Trustees' fees and expenses 43,479 156,610
Custodian fees 22,739 92,982
Registration fees 23,908 52,855
Reports to shareholders 144,446 332,971
Professional fees 18,770 81,728
Miscellaneous 64,169 301,235
Reimbursement from Advisor (334,773) (39,838)
- ----------------------------------------------------------------------------
Total expenses 1,439,491 7,482,327
Fees paid indirectly (22,739) (92,982)
- ------------------------------------------------------------------------------
Net expenses 1,416,752 7,389,345
- -------------------------------------------------------------------------------
Net Investment Income 7,717,644 14,907,120
- --------------------------------------------------------------------------------
Realized and Unrealized
Gain (Loss) on Investments
- --------------------------------------------------------------------------------
Net realized gain (loss) on:
Securities (3,983) 23,170,160
Futures _ (1,349,850)
Foreign currencies _ (8,940)
- -------------------------------------------------------------------------------
(3,983) 21,811,370
Change in unrealized appreciation or depreciation -- 19,966,340
- -------------------------------------------------------------------------------
Net Realized and Unrealized
Gain (Loss) on Investments (3,983) 41,777,710
- -------------------------------------------------------------------------------
Increase (Decrease) in
Net Assets Resulting
From Operations $7,713,661 $56,684,830
===============================================================================
Net Investment Income
Investment Income
Interest income $4,430,793 $47,231
Dividend income (net of foreign taxes
withheld of $33,164 for Equity) 13,322 1,330,560
- ------------------------------------------------------------------------------
Total investment income 4,444,115 1,377,791
Expenses
Investment advisory fee 421,016 496,208
Transfer agency fees and expenses 152,852 305,430
Distribution Plan expenses:
Class A 127,042 217,340
Class C 12,505 22,628
Trustees' fees and expenses 17,612 25,953
Custodian fees 22,277 13,802
Registration fees 31,013 29,625
Reports to shareholders 40,448 85,523
Professional fees 7,612 26,437
Miscellaneous 30,938 56,631
Reimbursement from Advisor (9,370) _
- -------------------------------------------------------------------------------
Total expenses 853,945 1,279,577
Fees paid indirectly (22,277) (13,802)
- --------------------------------- ---------------------------------------------
Net expenses 831,668 1,265,775
- --------------------------------------------------------------------------------
Net Investment Income 3,612,447 112,016
- --------------------------------------------------------------------------------
Realized and Unrealized
Gain (Loss) on Investments
- --------------------------------------------------------------------------------
Net realized gain (loss) 15,729 6,588,657
Change in unrealized appreciation or depreciation (1,183,585) 8,311,454
- ------------------------------------------------------------------------------
Net Realized and Unrealized
Gain (loss) on Investments (1,167,856) 14,900,111
- ------------------------------- --------------------------------------------
Increase (Decrease) in
Net Assets Resulting
From Operations $2,444,591 $15,012,127
=============================================================================
Increase (Decrease) in Net Assets
- --------------------------------------------------------------------------------
Operations
Net investment income $7,717,644 $7,317,082
Net realized gain (loss) (3,983) (1,883)
- ------------------------------------------------------------------------------
Increase (Decrease) in Net Assets
Resulting From Operations 7,713,661 7,315,199
- ------------------------------------------------------------------------------
Distributions to shareholders from
Net investment income (7,717,375) (7,316,488)
- ----------------------------------------------------------------------------
Capital share transactions:
Shares sold 166,829,716 144,488,289
Reinvestment of distributions 7,211,144 7,091,284
Shares redeemed (161,516,395)(141,361,798)
- --------------------------------------------------------------------------------
12,524,465 10,217,775
- ----------------------------------------------------------------------------
Total Increase (Decrease)
in Net Assets 12,520,751 10,216,486
Net Assets
- --------------------------------------------------------------------------------
Beginning of year 153,995,571 143,779,085
- -------------------------------------------------------------------------------
End of year (including undistributed net investment
income of $863 and $594, respectively) $166,516,322 $153,995,571
=============================================================================
Capital Share Activity
- --------------------------------------------------------------------------------
Shares sold 166,829,716 144,488,289
Reinvestment of distributions 7,211,144 7,091,284
Shares redeemed (161,516,395) (141,361,798)
- -------------------------------------------------------------------------------
Total capital share activity 12,524,465 10,217,775
===============================================================================
Increase (Decrease) in Net Assets
Operations
Net investment income $14,907,120 $15,027,988
Net realized gain (loss) 21,811,370 61,611,966
Change in net unrealized
appreciation or depreciation 19,966,340 11,568,497
- ------------------------------------------------------------------------------
Increase (Decrease) in Net Assets
Resulting From Operations 56,684,830 88,208,451
- ---------------------------------------------------------------------------
Distributions to shareholders from
Net investment income:
Class A Shares (14,622,197) (14,892,978)
Class C Shares (79,219) (58,324)
Net realized gain:
Class A Shares (63,482,198) (3,653,404)
Class C Shares (481,235) (16,082)
- ----------------------------------------------------------------------------
Total distributions (78,664,849) (18,620,788)
Capital share transactions:
Shares sold:
Class A Shares 75,161,055 64,112,225
Class C Shares 3,298,057 2,255,528
Reinvestment of distributions:
Class A Shares 71,965,131 17,905,477
Class C Shares 548,576 73,747
Shares redeemed:
Class A Shares (91,748,763)(102,234,643)
Class C Shares (1,093,458) (572,714)
- ------------------------------------------------------------------------------
Total capital share transactions 58,130,598 (18,460,380)
- -----------------------------------------------------------------------------
Total Increase (Decrease)
in Net Assets 36,150,579 51,127,283
Net Assets
- -------------------------------------------------------------------------------
Beginning of year 565,046,764 513,919,481
- -------------------------------------------------------------------------------
End of year (including undistributed net investment
income of $439,804 and $192,950, respectively) $601,197,343 $565,046,764
===============================================================================
Capital Share Activity
- --------------------------------------------------------------------------------
Shares sold:
Class A Shares 2,456,495 2,095,415
Class C Shares 108,790 75,390
Reinvestment of distributions:
Class A Shares 2,397,276 568,732
Class C Shares 18,464 2,501
Shares redeemed:
Class A Shares (2,989,397) (3,364,989)
Class C Shares (35,721) (19,232)
- --------------------------------------------------------------------------------
Total capital share activity 1,955,907 (642,183)
================================ ===========================================
Increase (Decrease) in Net Assets
Operations
Net investment income $3,612,447 $3,712,987
Net realized gain (loss) 15,729 (916,277)
Change in net unrealized
appreciation or depreciation (1,183,585) 4,548,221
- ------------------------------------------------------------------------------
Increase (Decrease) in Net Assets
Resulting From Operations 2,444,591 7,344,931
- --------------------------------------------------------------------------------
Distributions to shareholders from
Net investment income:
Class A Shares (3,552,786) (3,578,827)
Class C Shares (54,625) (29,538)
Net realized gain:
Class A Shares - (233,208)
Class C Shares - (1,624)
Tax return of capital:
Class A Shares - (134,168)
Class C Shares - (1,107)
- --------------------------------- --------------------------------------------
Total distributions (3,607,411) (3,978,472)
- --------------------------------------------------------------------------------
Capital share transactions:
Shares sold:
Class A Shares 11,109,094 9,721,624
Class C Shares 661,435 755,847
Reinvestment of distributions:
Class A Shares 2,753,789 3,564,799
Class C Shares 49,153 29,809
Shares redeemed:
Class A Shares (13,397,047) (15,268,017)
Class C Shares (152,489) (219,095)
- -------------------------------------------------------------------------------
Total capital share transactions 1,023,935 (1,415,033)
- ------------------------------------------------------------------------------
Total Increase (Decrease)
In Net Assets (138,885) 1,951,426
Net Assets
Beginning of year 63,839,088 61,887,662
- -------------------------------------------------------------------------------
End of year (including undistributed net investment
income of $109,558 and $104,522, respectively) $63,700,203 $63,839,088
=============================== ============================================
Capital Share Activity
- --------------------------------------------------------------------------------
Shares sold:
Class A Shares 679,640 614,412
Class C Shares 40,967 47,745
Reinvestment of distributions:
Class A Shares 169,469 225,438
Class C Shares 3,061 1,891
Shares redeemed:
Class A Shares (822,989) (965,822)
Class C Shares (9,542) (13,861)
- ----------------------------------------------------------------------------
Total capital share activity 60,606 (90,197)
================================================================================
Increase (Decrease) in Net Assets
- -----------------------------------------------------------------------------
Operations
Net investment income $112,016 $275,873
Net realized gain (loss) 6,588,657 7,338,427
Change in net unrealized
appreciation or depreciation 8,311,454 2,776,172
- --------------------------------------------------------------------------------
Increase (Decrease) in Net Assets
Resulting From Operations 15,012,127 10,390,472
- -------------------------------------------------------------------------------
Distributions to shareholders from
Net investment income:
Class A Shares (262,483) (205,649)
Class C Shares (1,695) (3,766)
Net realized gain:
Class A Shares (7,816,026) (5,771,214)
Class C Shares (165,432) (52,194)
- --------------------------------------------------------------------------------
Total distributions (8,245,636) (6,032,823)
Capital share transactions:
Shares sold:
Class A Shares 19,139,948 15,393,397
Class C Shares 1,179,087 1,154,662
Reinvestment of distributions:
Class A Shares 7,431,893 5,988,415
Class C Shares 164,558 55,960
Shares redeemed:
Class A Shares (22,784,833) (27,640,020)
Class C Shares (310,498) (197,945)
- -------------------------------------------------------------------------------
Total capital share transactions 4,820,155 (5,245,531)
- -----------------------------------------------------------------------------
Total Increase (Decrease)
in Net Assets 11,586,646 (887,882)
Net Assets
- ------------------------------------------------------------------------------
Beginning of year 92,752,785 93,640,667
- --------------------------------------------------------------------------------
End of year (including undistributed net investment
income (loss)
of $36,595 and $188,757, respectively) $104,339,431 $92,752,785
===============================================================================
Capital Share Activity
- -------------------------------------------------------------------------------
Shares sold:
Class A Shares 913,008 800,199
Class C Shares 57,668 60,778
Reinvestment of distributions:
Class A Shares 367,609 329,761
Class C Shares 8,348 3,001
Shares redeemed:
Class A Shares (1,092,012) (1,442,423)
Class C Shares (15,221) (10,106)
- -----------------------------------------------------------------------------
Total capital share activity 239,400 (258,790)
===============================================================================
Note A-Significant Accounting Policies
General: The Calvert Social Investment Fund (the "Fund") is registered
under the Investment Company Act of 1940 as a diversified, open-end management
investment company. The Fund operates as a series fund with four separate
portfolios: Money Market, Managed Growth, Bond and Equity. Each Portfolio offers
shares of beneficial interest. Money Market shares are sold without a sales
charge. Managed Growth, Bond and Equity offer both Class A and Class C shares.
Class A shares are sold with a maximum front-end sales charge of 4.75% (3.75%
for Bond). Class C shares, which have no transaction-based sales charge, have a
higher annual expense rate than Class A. Each class has different: (a) dividend
rates, due to differences in Distribution Plan expenses and other class specific
expenses, (b) exchange privileges and (c) class specific voting rights.
Security Valuation: Securities listed or traded on a national securities
exchange are valued at the last reported sale price. Unlisted securities and
listed securities for which the last sale price is not available are valued at
the most recent bid price or based on a yield equivalent obtained from the
securities' market maker. 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. Foreign security prices, furnished by
quotation services in the security's local currency, are translated using the
current U.S. dollar exchange rate. All securities held by Money Market are
valued at amortized cost which approximates market. The Fund may invest in
securities whose resale is subject to restrictions. Restricted securities and
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.
Repurchase Agreements: The Fund may enter into repurchase agreements with
recognized financial institutions or registered broker/dealers and, in all
instances, holds underlying securities with a value exceeding the total
repurchase price, including accrued interest.
Options: The Fund 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. The
Fund maintains liquid assets sufficient to cover, on a daily basis, the current
values of written options.
Futures Contracts: The Fund may enter into futures contracts agreeing to
buy or sell a financial instrument for a set price at a future date. The Fund
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. Dividend income is recorded on the ex-dividend date or,
in the case of dividends on certain foreign securities, as soon as the Fund is
informed of the ex-dividend date. Interest income, accretion of discount and
amortization of premium are recorded on an accrual basis.
Foreign Currency Transactions: The Fund's accounting records are maintained
in U.S. dollars. For valuation of assets and liabilities on each date of net
asset value determination, foreign denominations are translated into U.S.
dollars using the current exchange rate. Security transactions, income and
expenses are converted at the prevailing rate of exchange on the date of the
event. The effect of changes in foreign exchange rates on securities is included
in the net realized and unrealized gain or loss on securities.
Distributions to Shareholders: Distributions to shareholders are recorded
by the Fund on ex-dividend date. Dividends from net investment income are paid
monthly by Money Market (accrued daily) and Bond, quarterly by Managed Growth
and annually by Equity. Distributions from net realized capital gains, if any,
are paid at least annually. Distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles; accordingly, periodic reclassifications are made within the Fund's
capital accounts to reflect income and gains available for distribution under
income tax regulations.
The Fund designates $19,533,351 and $777,811 as capital gain dividends for
taxable year ended September 30, 1996 for Managed Growth Portfolio and Equity
Portfolio, respectively.
Expense Offset Arrangement: The Fund has an arrangement with its custodian
bank whereby the custodian's fees are paid indirectly by credits earned on each
Portfolio's cash on deposit with the bank. Such deposit arrangement is an
alternative to overnight investments.
Federal Income Taxes: No provision for federal income or excise tax is
required since the Fund intends to continue to qualify as a regulated investment
company under the Internal Revenue Code and to distribute substantially all of
its earnings.
Note B-Related Party Transactions
Calvert Asset Management Company, Inc. (the "Advisor") is wholly-owned by
Calvert Group, Ltd. ("Calvert"), which is indirectly wholly-owned by Acacia
Mutual Life Insurance Company. The Advisor provides investment advisory services
and pays the salaries and fees of officers and affiliated Trustees of the Fund.
For its services, the Advisor receives monthly fees based on the following
annual rates of average daily net assets: .50 % for Money Market, .70% for both
Managed Growth and Equity, and .65% for Bond. Effective June, 1995, Equity began
paying a monthly performance fee of plus or minus .20%, on an annual basis, of
average daily net assets of the performance period depending on the Portfolio's
performance compared to the Standard & Poor's Composite Stock Price Index.
The Advisor reimburses the Portfolios for their respective operating
expenses (excluding brokerage fees, taxes, interest, Distribution Plan expenses
and extraordinary items) exceeding the following annual rates of average daily
net assets: 1.5% on the first $30 million and 1.0% on the excess of $30 million
for Money Market and Bond; 2.5% on the first $30 million, 2.0% on the next $70
million and 1.5% on the excess of $100 million for Managed Growth and Equity.
Calvert Distributors, Inc., an affiliate of the Advisor, is the distributor
and principal underwriter for the Fund. Distribution Plans, adopted by each
class of shares, allow the Portfolios to pay the distributor for expenses and
services associated with distribution of shares. The expenses paid may not
exceed .35% and 1.0% annually of average daily net assets of each Class A and
Class C for Managed Growth, Bond and Equity, respectively. The expenses of Money
Market are limited to .25% annually of average daily net assets.
The Distributor received the following as its portion of the commissions
charged on sales of each Portfolio's shares: $405,789 for Managed Growth,
$59,699 for Bond and $129,525 for Equity.
Calvert Shareholder Services, Inc., an affiliate of the Advisor, acts as
transfer, dividend disbursing and shareholder servicing agent for the Fund.
Each Trustee who is not affiliated with the Advisor receives an annual fee
of $15,430 plus $600 for each Board and Committee meeting attended. Additional
fees of up to $10,000 annually may be paid to the Chairperson of special
committees of the Board. Trustee's fees are allocated to each of the funds
served.
Umbono Investment Corp., which is an affiliate because Managed Growth owns
over 5% of the voting securities, was purchased at a cost of $7,849,582 for
2,850,429 shares.
Note C-Investment Activity
During the year, purchases and sales of investments, other than short-term
securities, were:
- ----------------------------------------------------------------------------
Purchases: $634,323,140 $13,379,612 $111,167,615
Sales: 618,360,640 13,839,189 119,654,539
Money Market held only short-term investments.
The cost of investments owned at September 30, 1996 was substantially the
same for federal income tax and financial reporting purposes for each Portfolio.
The following table presents the components of net unrealized appreciation
(depreciation) and the net realized capital loss carryforwards as of September
30, 1996 with expiration dates:
- ------------------------------------------------------------------------------
Unrealized appreciation - $82,789,292 $1,151,797$13,782,260
Unrealized depreciation - (8,553,382) (868,449) (2,758,003)
Capital loss carry forward 49,210 - 900,947 -
Expiration dates 1997-2004 - 2003-2004 -
Capital losses may be utilized to offset current and future capital gains
until expiration.
As a cash management practice, Portfolios may sell or purchase short-term
variable rate demand notes from other Portfolios managed by the Advisor. The
transactions are effected at par with no gain or loss to the Portfolio, in
accordance with policies of the Fund.
Additionally, the Portfolios effected transactions with other Portfolios,
which resulted in net gains (losses) on sales of securities of ($366) for the
Money Market. All transactions were executed at independently derived prices.
Note D-Subsequent Event
Effective October 29, 1996, all outstanding Class C shares in the Bond
Portfolio will be converted automatically into an equivalent value of Class A
shares. This transaction is a non-taxable exchange and no sales charge will be
applied to the Class A shares issued.
- -----------------------------------------------------------------------------
Net asset value, beginning $1.00 $1.00 $1.00
===============================================================================
Income from investment operations
Net investment income .048 .050 .031
Distributions from
Net investment income (.048) (.050) (.031)
- --------------------------------------------------------------------------------
Net asset value, ending $1.00 $1.00 $1.00
===============================================================================
Total return 4.88% 5.13% 3.13%
Ratios to average net assets:
Net investment income 4.77% 5.03% 3.07%
Total expenses .89% .89% --
Net expenses .87% .87% .87%
Expenses reimbursed .21% .18% .18%
Net assets, ending (in thousands) $166,516 $153,996 $143,779
Number of shares outstanding,
ending (in thousands) 166,569 154,044 143,826
- -----------------------------------------------------------------------------
Net asset value, beginning $1.00 $1.00
================================================================================
Income from investment operations
Net investment income .025 .037
Distributions from
Net investment income (.025) (.037)
- --------------------------------------------------------------------------------
Net asset value, ending $1.00 $1.00
=================================== ===========================================
Total return 2.56% 3.79%
Ratios to average net assets:
Net investment income 2.54% 3.74%
Total expenses -- --
Net expenses .87% .87%
Expenses reimbursed .20% .16%
Net assets, ending (in thousands) $144,985 $171,340
Number of shares outstanding,
ending (in thousands) 145,031 171,407
Class A Shares
- --------------------------------------------------------------------------------
Net asset value, beginning $32.81 $28.77 $30.85
================================================================================
Income from investment operations
Net investment income .78 .87 .93
Net realized and unrealized gain (loss) 2.28 4.25 (1.83)
- --------------------------------------------------------------------------------
Total from investment operations 3.06 5.12 (.90)
Distributions from
Net investment income (.77) (.87) (.95)
Net realized gain (3.75) (.21) (.23)
- --------------------------------------------------------------------------------
Total distributions (4.52) (1.08) (1.18)
Total increase (decrease) in
net asset value (1.46) 4.04 (2.08)
Net asset value, ending $31.35 $32.81 $28.77
===============================================================================
Total return* 10.27% 18.21% (2.95%)
Ratios to average net assets:
Net investment income 2.58% 2.89% 3.14%
Total expenses 1.28% 1.28% --
Net expenses 1.26% 1.26% 1.24%
Expenses reimbursed .01% .02% --
Portfolio turnover 111% 114% 34%
Average commission rate paid $.05 - -
Net assets, ending (in thousands) $594,482 $560,981 $512,027
Number of shares outstanding,
ending (in thousands) 18,964 17,099 17,800
Class A Shares
Net asset value, beginning $29.35 $28.42
===============================================================================
Income from investment operations
Net investment income .95 1.07
Net realized and unrealized gain (loss) 1.91 1.82
- ------------------------------------------------------------------------------
Total from investment operations 2.86 2.89
Distributions from
Net investment income (.95) (1.95)
Net realized gain (.41) (.01)
- ---------------------------------- -------------------------------------------
Total distributions (1.36) (1.96)
Total increase (decrease) in net asset value 1.50 .93
Net asset value, ending $30.85 $29.35
================================================================================
Total return* 9.98% 10.71%
Ratios to average net assets:
Net investment income 3.25% 3.90%
Total expenses -- --
Net expenses 1.25% 1.28%
Expenses reimbursed -- --
Portfolio turnover 33% 14%
Average commission rate paid
Net assets, ending (in thousands) $536,170 $419,514
Number of shares outstanding,
ending (in thousands) 17,378 14,292
Bond Portfolio
Period Ended Year Ended Year Ended
September 30, September 30, September 30,
1994 1994 1993
Class A SharesClass C Shares
Net asset value, beginning of year $17.77 $16.71 $17.05
Income from investment operations
Net investment income .94 .45 1.08
Net realized and unrealized gain
(loss) on investments (1.81) (1.23) .85
Total from investment operations (.87) (.78) 1.93
Distributions to shareholders
Dividends from net
investment income (.94) (.50) (1.08)
Distribution from capital gains (.47) - (.13)
Total distributions (1.41) (.50) (1.21)
Total increase (decrease) in
net asset value (2.28) (1.28) .72
Net asset value, end of year $15.49 $15.43 $17.77
Total return* (5.18%) (4.13%) 11.89%
Ratio of expenses to average net assets 1.10% 2.41%(a) .79%
Ratio of net income to
average net assets 5.64% 4.63%(a) 6.33%
Increase reflected in above net
investment income ratios due to
expense reimbursement - 9.47%(a) .20%
Portfolio turnover 19.00% 19.00% 27.61%
Net assets, end of year $61,572,858 $314,804 $67,134,129
Number of shares outstanding at
end of year (in thousands) 3,976 20 3,778
(a) Annualized
* Total return is not annualized and does not reflect deduction of Class A
front-end sales charge.
Equity Portfolio
Year Ended Year Ended Year Ended
September 30, September 30, September 30,
1994 1994 1993
Class A SharesClass C Shares
Net asset value, beginning of year $21.43 $22.12 $20.03
Income from investment operations
Net investment income .13 (.06) .21
Net realized and unrealized gain
(loss) on investments (1.04) (2.08) 1.36
Total from investment operations (.91) (2.14) 1.57
Distributions to shareholders
Dividends from net
investment income (.28) - (.17)
Distribution from capital gains (.11) - -
Total distributions (.39) - (.17)
Total increase (decrease) in
net asset value (1.30) (2.14) 1.40
Net asset value, end of year $20.13 $19.98 $21.43
Total return* (4.33%) (9.14%) 7.82%
Ratio of expenses to average net assets 1.27% 2.75%(a) 1.13%
Ratio of net income to
average net assets .65% (1.06%)(a) 1.06%
Increase reflected in above net
investment income ratios due
to expense reimbursement - 4.42% -
Portfolio turnover 94.00% 94.00% 42.65%
Net assets, end of year $92,970,422 $670,245 $85,042,192
Number of shares outstanding at
end of year (in thousands) 4,620 34 3,968
(a) Annualized
* Total return is not annualized and does not reflect deduction of Class A
front-end sales charge.
=
Class C Shares
- --------------------------------------------------------------------------------
Net asset value, beginning $32.60 $28.65 $30.43
==============================================================================
Income from investment operations
Net investment income .46 .54 .51
Net realized and unrealized gain (loss) 2.17 4.20 (1.66)
- --------------------------------------------------------------------------------
Total from investment operations 2.63 4.74 (1.15)
Distributions from
Net investment income (.43) (.58) (.63)
Net realized gain (3.75) (.21) --
- ------------------------------------------------------------------------------
Total distributions (4.18) (.79) (.63)
Total increase (decrease)
in net asset value (1.55) 3.95 (1.78)
Net asset value, ending $31.05 $32.60 $28.65
================================================================================
Total return* 8.85% 16.85% (3.30%)
Ratios to average net assets:
Net investment income 1.34% 1.61% 1.83%(a)
Total expenses 2.52% 2.51% --
Net expenses 2.50% 2.50% 2.47%(a)
Expenses reimbursed .14% .42% 1.46%(a)
Portfolio turnover 111% 114% 34%
Average commission rate paid $.05 - -
Net assets, ending (in thousands) $6,715 $4,065 $1,893
Number of shares outstanding,
ending (in thousands) 216 125 66
Class A Shares
- -----------------------------------------------------------------------------
Net asset value, beginning $16.34 $15.49 $17.77
================================================================================
Income from investment operations
Net investment income .92 .96 .94
Net realized and unrealized gain (loss) (.29) .91 (1.81)
- --------------------------------------------------------------------------------
Total from investment operations .63 1.87 (.87)
Distributions from
Net investment income (.91) (.93) (.94)
Net realized gain - (.06) (.47)
Tax return of capital - (.03) --
- --------------------------------------------------------------------------------
Total distributions (.91) (1.02) (1.41)
Total increase (decrease)
in net asset value (.28) .85 (2.28)
Net asset value, ending $16.06 $16.34 $15.49
================================================================================
Total return* 3.96% 12.57% (5.18%)
Ratios to average net assets:
Net investment income 5.60% 6.04% 5.64%
Total expenses 1.29% 1.24% --
Net expenses 1.26% 1.22% 1.10%
Portfolio turnover 22% 29% 19%
Net assets, ending (in thousands) $62,259 $62,929 $61,573
Number of shares outstanding,
ending (in thousands) 3,876 3,850 3,976
Class A Shares
- --------------------------------------------------------------------------------
Net asset value, beginning $17.05 $16.48
===============================================================================
Income from investment operations
Net investment income 1.08 1.15
Net realized and unrealized gain (loss) .85 .78
- ------------------------------- --------------------------------------------
Total from investment operations 1.93 1.93
Distributions from
Net investment income (1.08) (1.15)
Net realized gain (.13) (.21)
- --------------------------------------------------------------------------------
Total distributions (1.21) (1.36)
Total increase (decrease) in net asset value .72 .57
Net asset value, ending $17.77 $17.05
================================================================================
Total return* 11.89% 12.29%
Ratios to average net assets:
Net investment income 6.33% 6.90%
Total expenses -- --
Net expenses .79% .75%
Expenses reimbursed .20% .24%
Portfolio turnover 28% 29%
===============================================================================
Net assets, ending (in thousands) $67,134 $50,572
================================ ============================================
Number of shares outstanding,
ending (in thousands) 3,778 2,965
Equity Portfolio
Year Ended Year Ended Year Ended
September 30, September 30, September 30,
1994 1994 1993
Class A Shares Class C Shares
Net asset value, beginning of year $21.43 $22.12 $20.03
Income from investment operations
Net investment income .13 (.06) .21
Net realized and unrealized gain
(loss) on investments (1.04) (2.08) 1.36
Total from investment operations (.91) (2.14) 1.57
Distributions to shareholders
Dividends from net
investment income (.28) - (.17)
Distribution from capital gains (.11) - -
Total distributions (.39) - (.17)
Total increase (decrease) in
net asset value (1.30) (2.14) 1.40
Net asset value, end of year $20.13 $19.98 $21.43
Total return* (4.33%) (9.14%) 7.82%
Ratio of expenses to average net assets 1.27% 2.75%(a) 1.13%
Ratio of net income to
average net assets .65% (1.06%)(a) 1.06%
Increase reflected in above net
investment income ratios due
to expense reimbursement - 4.42% -
Portfolio turnover 94.00% 94.00% 42.65%
Net assets, end of year $92,970,422 $670,245 $85,042,192
Number of shares outstanding at
end of year (in thousands) 4,620 34 3,968
(a) Annualized
* Total return is not annualized and does not reflect deduction of Class A
front-end sales charge.
Class C Shares
- ----------------------- ------------------------------------
Net asset value, beginning $16.20 $15.43 $16.71
================================= ===========================================
Income from investment operations
Net investment income .72 .80 .45
Net realized and unrealized gain (loss) (.31) .87 (1.23)
- --------------------------------- -----------------------------------------
Total from investment operations .41 1.67 (.78)
Distributions from
Net investment income (.71) (.81) (.50)
Net realized gain - (.06) __
Tax return of capital - (.03) --
- ----------------------------------- --------------------------------------------
Total distributions (.71) (.90) (.50)
Total increase (decrease)
in net asset value (.30) .77 (1.28)
Net asset value, ending $15.90 $16.20 $15.43
================================================================================
Total return* 2.58% 11.21% (4.13%)
Ratios to average net assets:
Net investment income 4.18% 4.60% 4.63%(a)
Total expenses 2.53% 2.52% --
Net expenses 2.50% 2.50% 2.41%(a)
Expenses reimbursed .75% 2.14% 9.60%(a)
Portfolio turnover 22% 29% 19%
Net assets, ending (in thousands) $1,441 $910 $315
Number of shares outstanding,
ending (in thousands) 91 56 20
Class A Shares
- -------------------------------- --------------------------------------------
Net asset value, beginning $21.12 $20.13 $21.43
================================= ===========================================
Income from investment operations
Net investment income .03 .06 .13
Net realized and unrealized gain (loss) 3.26 2.22 (1.04)
- -------------------------------- --------------------------------------------
Total from investment operations 3.29 2.28 (.91)
Distributions from
Net investment income (.06) (.04) (.28)
Net realized gain (1.81) (1.25) (.11)
- --------------------------------------------------------------------------------
Total distributions (1.87) (1.29) (.39)
Total increase (decrease)
in net asset value 1.42 .99 (1.30)
Net asset value, ending $22.54 $21.12 $20.13
================================ ============================================
Total return* 16.62% 12.43% (4.33%)
Ratios to average net assets:
Net investment income .15% .32% .65%
Total expenses 1.29% 1.38% --
Net expenses 1.27% 1.36% 1.27%
Portfolio turnover 118% 35% 94%
Average commission rate paid $.06 - -
Net assets, ending (in thousands) $101,344 $90,951 $92,970
Number of shares outstanding,
ending (in thousands) 4,496 4,307 4,620
Class A Shares
- --------------------------------------------------------------------------------
Net asset value, beginning $20.03 $18.89
=============================== ============================================
Income from investment operations
Net investment income .21 .17
Net realized and unrealized gain (loss) 1.36 1.20
- ------------------------------- --------------------------------------------
Total from investment operations 1.57 1.37
Distributions from
Net investment income (.17) (.23)
Net realized gain -- --
- ----------------------------------- --------------------------------------------
Total distributions (.17) (.23)
Total increase (decrease) in net asset value 1.40 1.14
Net asset value, ending $21.43 $20.03
=============================== ============================================
Total return* 7.82% 7.36%
Ratios to average net assets:
Net investment income 1.06% 1.02%
Total expenses -- --
Net expenses 1.13% 1.17%
Expenses reimbursed -- --
================================================================================
Portfolio turnover 43% 24%
================================================================================
Average commission rate paid - -
Net assets, ending (in thousands) $85,042 $64,629
Number of shares outstanding,
ending (in thousands) 3,968 3,226
Class CShares
- --------------------------------- --------------------------------------------
Net asset value, beginning $20.66 $19.98 $22.12
================================================================================
Income from investment operations
Net investment income (.16) (.03) (.06)
Net realized and unrealized gain (loss) 3.04 2.05 (2.08)
- --------------------------------------------------------------------------------
Total from investment operations 2.88 2.02 (2.14)
Distributions from
Net investment income (.02) (.09) --
Net realized gain (1.81) (1.25) --
- --------------------------------- --------------------------------------------
Total distributions (1.83) (1.34) --
Total increase (decrease)
in net asset value 1.05 .68 (2.14)
Net asset value, ending $21.71 $20.66 $19.98
================================================================================
Total return* 14.85% 11.16% (9.14%)
Ratios to average net assets:
Net investment income (loss) (1.42%) (.84%) (1.06%)(a)
Total expenses 2.86% 2.51% --
Net expenses 2.85% 2.50% 2.75%(a)
Expenses reimbursed - 1.07% 4.60%(a)
Portfolio turnover 118% 35% 94%
Average commission rate paid $.06 - -
Net assets, ending (in thousands) $2,996 $1,802 $670
Number of shares outstanding,
ending (in thousands) 138 87 34
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
TDDfor Hearing
Impaired:
..............................................................................
800-541-1524
Branch Office:
................................................................................
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
Registered, Certified
or Overnight Mail:
................................................................................
Calvert Group
c/o NFDS, 6th Floor
1004 Baltimore
Kansas City, MO 64105-1807
Web Site
................................................................................
Address: http://www.calvertgroup.com
Principal
Underwriter:
................................................................................
Calvert Distributors, Inc.
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
