A SPECIAL NOTICE TO ALL
CALVERT GROUP SHAREHOLDERS
We're pleased to announce that on April 21, 1997, Barbara Krumsiek joined
Calvert Group as president and chief executive officer. Ms. Krumsiek comes to
Calvert Group from Alliance Capital Management, where she served as senior vice
president and managing director of their mutual funds division. She has 20 years
experience in mutual fund management and marketing.
Ms. Krumsiek replaces former Calvert Group president, Clifton S. Sorrell,
who stepped down earlier this year after nearly 10 years in the top post.
We look forward to Ms. Krumsiek leading the company into the next century
and bringing Calvert Group mutual funds to a growing number of new investors. We
welcome her to the Calvert Group family.
A Note From the Chairman
Dear Investor:
The financial markets have continued their growth over the past six months,
although with some loss of momentum. While financial returns have been positive,
there is an increasing wariness of where this free market exuberance has been
taking our markets and our society. Some developments, such as the cuts in
military spending, have helped fuel the economic expansion and better aligned
our priorities for the future, but other trends have raised concerns among a
diverse chorus of participants and observers.
In one of the most controversial articles published this year, no less than
the self-proclaimed "supercapitalist" George Soros noted in the Atlantic Monthly
that "although I have made a fortune in financial markets, I now fear that the
untrammeled intensification of laissez-faire capitalism and the spread of market
values into all areas of life is endangering our open and democratic society.
The main enemy of the open society, I believe, is no longer the communist but
the capitalist threat."
It is refreshing to see such a viewpoint expressed from someone who helps
shape the markets. And yet, his ideas beg the question "What can be done?" Our
answer is an emphasis of social responsibility in the context of the choices
that can be made with free market forces. I am heartened that over the past year
we have been able to make some of those leadership choices as our response.
Shareholder Activism
The Fund continues to engage portfolio companies in a dialogue for change.
We've been communicating with The Walt Disney Company about serious allegations
of labor and human rights violations. Disney faced a shareholder resolution by
religious and social investors on supplier standards, and another resolution
linking the company's executive compensation with its contractors' working
conditions in Haiti. CSIF voted its shares in support of both resolutions.
Disney has developed a code of conduct for all of its licensees and
manufacturers. The Code prohibits the use of child labor and corporal punishment
or other forms of mental and physical coercion, and requires a safe and healthy
workplace and compliance with applicable wage and hour laws. We will continue
our dialogue with Disney and continue to monitor Disney's international
operations.
Last year, the Fund agreed to withdraw a shareholder resolution we had
filed with Morton International, when the company agreed to publish its first
environmental, health and safety report. While the recently released report
provides a succinct overview of the company's successes and challenges on these
issues, we will continue to press for improvements in the company's programs.
Special Equities
Another part of our solution is to foster young companies that provide the
seeds for a sustainable society. One investment we made during this period was
in Agraquest, a company that helps identify and develop natural ways for farmers
to control insects and fungi through the use of living microbes. The company is
well positioned to take advantage of a growing opinion that natural pesticides
are superior to synthetic chemicals in terms of effectiveness, cost, and health
and environmental impact.
Also during this period the special equity portfolio saw its investment in
Aviron, a nasal vaccine delivery system, go public which resulted in an increase
in the value of the investment as well as improve the prospects for easy flu
"snorts" to protect older people and children. And our company Fountainhead,
which provides an environmentally safer, chlorine-free means to clean water in
pools and spas was acquired by another company at a profit to the Fund. As
always, more information about these companies of the future is available at our
website, www.CalvertSIF.com.
High Social Impact Investments
Finally, an important part of our solution is the one percent of assets the
Fund puts aside 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 Self-Help Ventures Fund which helps
individuals throughout North Carolina start and expand their own businesses.
Loan recipient Mary Neal took advantage of a special program that finances
childcare and healthcare providers. With Self-Help's financial and technical
assistance, she was able to expand her business. As a result, the Mary Neal
Childcare Center created 8 new jobs, added 24 more affordable childcare slots
and was able to offer affordable daycare throughout the day as well as during
evening work shifts.
Know What You Own
For our style of investing to make an even larger impact on the markets, we
need to expand our circle of shareholders. To that end, we have embarked on a
high profile public awareness campaign that seeks to educate investors about the
choices they often unwittingly make when they invest in mutual funds. Starting
with the issue of tobacco, our Know What You Own message has sparked tens of
thousands of investors across the country to call us or visit our website at
www.calvertgroup.com to find out what companies they own. Later this year we
will be adding new dimensions to the website to help investors make informed
decisions along a wider range of issues.
New CEO at Calvert
Calvert Group has just appointed Barbara Krumsiek as its new President and
Chief Executive Officer. Barbara comes to Calvert from Alliance Capital
Management where she served as senior vice president and managing director for
the firm's mutual fund arm, overseeing $17 billion in assets. Her impressive
array of marketing and analytical talents combined with her outstanding track
record as an effective manager will help her lead Calvert Group into the next
millennium. Furthermore, as one of a handful of women running mutual fund
complexes, Barbara will help break through the glass ceiling that often
characterizes this industry.
As the Fund nears its 15th anniversary, I think back to the early years
when skeptics didn't think this idea would work. It is rewarding to reflect on
the good work we have accomplished for our investors and for future generations
since 1982. At the same time, it is humbling to consider how much more we can do
and need to do to develop and spread our model of investing.
Thank you again for your patience and trust. I am excited about the
contributions Barbara Krumsiek will make toward furthering the goals, both
financial and social, of the Fund.
Sincerely,
D. Wayne Silby
Chairman, Board of Trustees
May 13, 1997
CALVERT SOCIAL INVESTMENT FUND
Dear Shareholder:
This report covers the performance and strategy of the Calvert Social
Investment Fund for the six months ended March 31, 1997.
Despite investors' collective worries that a stock market correction was
just around the corner, the market continued to advance, as measured by the most
widely covered market averages, the Standard & Poor's 500 Stock Index and the
Dow Jones Industrial Average. However, the market has been increasingly volatile
(which is common in the late stages of bull markets), and many market sectors
and industries did not share in the positive gains reported by the S&P and Dow
benchmarks.
SHORT-TERM INTEREST RATES
7%____________________
6%____________________
5%__________________________________________
3/96 5/96 7/96 9/96 11/96 1/97 3/97
_____Federal Funds Rate
-----90 Day Treasury Bill
.....1 Year Treasury Bill
Short-term interest rates remained low on a historical basis but began to
trend higher heading into 1997. In March, the Federal Reserve intervened to slow
the pace of economic growth and took steps to raise rates.
Money Market Portfolio
Managed by Calvert Asset Management Company
Money market yields moved higher, keeping in-step with the rise in
short-term market rates. The Portfolio's yield was comparable to the yield
available on an average of similar funds.
We kept the weighted average maturity short, relative to the average, so
that the yield would reflect any rise in rates quickly. Maturity was 36 days at
period end, compared to 53 days for the average money market fund. We also
continued to invest roughly 50% of assets in variable rate demand notes. Yields
on variable rate demand notes are reset periodically, so they correspond closely
to changes in money market rates.
ANNUALIZED COMPOUND DIVIDEND YIELD
Bond Portfolio
Managed by Calvert Asset Management Company
Calvert Asset Management Company (CAMCO) took over management of the Bond
Portfolio in March, replacing United States Trust Company. Since assuming
responsibility for managing assets, we have taken steps to bring the portfolio
in line with our outlook and investment approach. In general, CAMCO pursues a
very active portfolio management strategy, seeking out bonds that offer
attractive yields as well as the potential for price appreciation. We look to
maintain broad diversification among types of securities and sectors.
The Portfolio's weighted average duration which, like maturity, is a
measure of interest rate sensitivity, was 5.25 years at period-end. This is near
the short end of the Portfolio's target range, reflecting our outlook for
gradually rising rates over the next several months.
We reduced the Portfolio's exposure to mortgage-backed securities from
approximately 28% in September to about 8% at period end and roughly 5% as of
this writing. Mortgages perform best in a stable interest rate environment. When
rates rise, homeowners tend not to prepay their mortgages, which effectively
increases the average life of mortgage-backed securities. Prices of longer-term
securities decline more in response to a rise in rates.
Proceeds from sales of mortgage-backed issues were reinvested mainly in
corporate bonds. The percentage of assets committed to corporates increased from
roughly 30% of assets at the end of September to approximately 70% at the close
of this period. Within the corporate sector, we built a core position in bonds
issued by companies in the financial services industry, where yield spreads
relative to Treasury securities tend to fluctuate within a fairly wide range,
and a smaller position in bonds issued by companies in industrial industries,
where yield spreads tend to remain more stable. (Industrials is a very broad
grouping that is essentially comprised of all companies not included in the
financial services, transportation or utilities categories.)
The shift in assets from mortgages to corporates has altered the
Portfolio's credit-quality structure; but overall, a very high percentage of
assets (roughly 65%) remain committed to securities that are issued by
government agencies or have Standard & Poor's credit ratings of AAA, AA, or A,
the three highest ratings.
Managed Growth Portfolio
The Managed Growth Portfolio maintained its target allocation of roughly
55% equity securities and 45% fixed-income securities throughout the six-month
period covered by this report.
The Portfolio underperformed its benchmark for the six months, primarily
due to the equity component's overweighting in some of the poorer performing
stock market groups (especially the technology and financial services
industries) and its underweighting in some of the better-performing areas
(energy). In addition, our equity managers focus mainly on growth stocks, stocks
that have the potential to generate above-average earnings, and investors have
recently favored value stocks, stocks trading at discount prices.
Fixed-Income Investments-Calvert Asset Management
Calvert Asset Management Company (CAMCO) became the sole money manager for
the fixed-income portion of Managed Growth's assets in December, replacing
United States Trust Company. Since then, we have taken steps to bring the
portfolio in line with our outlook and investment approach. In general, CAMCO
pursues a very active portfolio management strategy, seeking out bonds that
offer attractive yields as well as the potential for price appreciation. We look
to maintain broad diversification among types of securities and sectors.
In keeping with our expectations for gradually rising rates, we kept the
Portfolio's duration near the short end of our target range. It was 5.35 years
at period-end. We also reduced the Portfolio's holdings of mortgage-backed
securities and added to the Portfolio's holdings of corporate bonds.
Equity Investments-NCM Capital Management
This portion of the Portfolio contributed positive returns but was hurt by
a setback in the financial services and technology sectors. Financial services
turned in good gains for the last quarter of 1996, but they lost ground in the
first quarter of 1997 on concerns for rising interest rates. In the technology
sector, semiconductor holdings were a drag on otherwise strong returns from this
group in the last quarter of 1996. But for the first quarter of 1997, most of
the technology stocks declined in value.
On the positive side, many of NCM's consumer products and health care
issues turned in good gains. These included Hershey Foods, Colgate Palmolive and
Merck.
Equity Investments-Brown Capital Management
Brown Capital Management began managing a portion of Portfolio assets in
October. This firm pursues a "growth at a reasonable price" strategy, that is
they look to identify promising companies with above-average growth potential
and to not pay too much more than the market for them. They tend to focus on
stocks with mid- to large-market capitalizations (market capitalization = share
price 5 number of shares outstanding).
Over the past several months, this manager took steps to identify and
invest in several large-cap companies that, in their opinion, will be able to
sustain double-digit growth over the next several years, operate at a higher
level of profitability than the overall market and were reasonably priced. These
included Hewlett-Packard, Intel, and Johnson & Johnson. As a result of this
initiative, the average market capitalization of the companies they selected for
the Portfolio has increased from $16.2 billion at the end of 1996 to $19.5
billion at the close of this reporting period.
Fund assets managed by Brown appreciated over the period, but their returns
were also hurt by an overweighting in the financial services and technology
sectors. Although the sell-off in these groups negatively affected short-term
performance, Brown is confident in the longer-term trends that support their
positive outlook for these stocks. Therefore, their response was to selectively
add to positions, specifically in Intel, Microsoft, Oracle, Cisco Systems, and
Chase Manhattan Bank.
Equity Portfolio
Managed by Loomis, Sayles & Company
The Equity Portfolio gained 5.42% over the past six months, a return a bit
above that of its peer group but below that of the Standard & Poor's 500 Stock
Index.
The Equity Portfolio was positioned in some of the best performing
industries, including pharmaceuticals and apparel. The Portfolio also earned
good gains from their bank and semiconductor stocks. Relative performance was
hindered by exposure to computer networking and software companies.
Bank holdings Chase Manhattan and BankAmerica did very well due to their
ability to grow earnings through solid revenue growth, tight expense control,
merger-related savings and share repurchase programs. Pharmaceutical companies
Merck and Schering Plough contributed good gains as new products have driven
revenue and profits higher. Liz Claiborne, the largest women's apparel company
in the US, also boosted the Portfolio's return as this company was successful in
reducing costs and revitalizing their core business. Semiconductor manufacturer
Intel had stellar gains over the period and was able to double year-over-year
profits in the latest quarter.
Networking and software holdings were a drag on recent performance. On the
basis of their long-term positive outlook for this group, the manager initiated
positions in several networking stocks after these had declined significantly
from their highs. Although added at compelling prices, these stocks continued to
slide going into the end of this reporting period, due to uncertainty over
near-term demand. Over the long-term, Loomis, Sayles believes that demand for
networking products will be robust, due to increased use of the Internet, growth
in telecommuting and the need for company branch offices to share data.
Outlook
The economic climate looks favorable for both stocks and bonds. While rates
will likely move a bit higher, we don't anticipate a sharp increase or a halt to
the current economic expansion.
The markets will likely continue to exhibit a high degree of volatility.
However, we think many sectors of the stock market, including small-company
stocks, financial services and technology issues, have experienced or are now
experiencing a correction. With this behind them, they should have room to
appreciate.
Thank you for your investment in the Calvert Social Investment Fund.
Sincerely,
Barbara J. Krumsiek
Senior Vice President, Calvert Social Investment Fund
April 25, 1997
Portfolio Statistics
Ten Largest Holdings
as of March 31, 1997
% of Net Assets
Managed Growth Portfolio
Federal National Mortgage Assn.
(8.15% to 9.55%, with various maturities to 5/11/98) 2.77%
Federal Home Loan Bank Board
(6.015% to 9.30%, with various maturities to 9/27/01) 2.73%
GNMA Single Family Mortgage Pool
(6.50% to 7.00%, with various maturities to 7/15/25) 2.49%
Xerox Capital Trust I, 8.00%, 2/1/27 1.52%
Cisco Systems, Inc. 1.45%
American Re Corp., 7.45%, 12/15/26 1.30%
American International Group, Inc. 1.28%
Chase Manhattan Corp. 1.25%
Federal Farm Medium Term Notes, 6.07%, 2/7/00 1.21%
Time Warner, Inc., 8.58%, 6/22/98 1.21%
Total 17.21%
Ten Largest Holdings
as of March 31, 1997
% of Net Assets
Equity Portfolio
American Greetings Corp. 3.41%
Dover Corp. 3.17%
Schering Plough Corp. 3.12%
USF&G Corp. 2.95%
AMRCorp. 2.94%
Ryder Systems, Inc. 2.89%
Federated Department Stores, Inc. 2.68%
Ameritech Corp. 2.64%
Liz Claiborne, Inc. 2.62%
General Nutrition Companies, Inc. 2.61%
Total 29.03%
Portfolio Statistics
Maturity Schedule
% of Portfolio 3/31/97 9/30/96
Money Market Portfolio
1-60 Days 75% 84%
61-120 Days 20% 10%
121-180 Days - 6%
181-360 Days 5% -
Weighted Average 33 days 28 days
Bond Portfolio
Less Than 1 Year 7% 10%
1-3 Years 13% 5%
3-5 Years 22% 18%
5-7 Years 11% 12%
7-10 Years 25% 12%
10-20 Years 1% 5%
20 Years and Above 21% 38%
Weighted Average 11 years 13 years
Average Annual Total Returns
for periods ended March 31, 1997
Inception Since
Class A Shares Date 1 Year 5 Year 10 Year Inception
Money Market 10/82 4.80% 3.94% 5.44% 6.33%
Bond 8/87 .16% 5.86% N/A 7.87%
Managed Growth 10/82* 1.79% 7.25% 7.49% 10.58%
Equity 8/87** 9.00% 6.48% N/A 7.28%
Inception Since
Class C Shares Date 1 Year Inception
Managed Growth 3/94* 5.60% 6.93%
Equity 3/94 12.95% 6.30%
* New sub-advisors assumed management of the Portfolio effective July, 1995.
** New sub-advisors assumed management of the Portfolio effective February,
1994.
Portfolio Statistics
SEC Yields
Thirty Days Ended 3/31/97 9/30/96
Bond Portfolio
Class A Shares 5.44% 5.36%
Money Market Portfolio
Change in value of a hypothetical $10,000 investment.
Bond Portfolio
Comparison of change in value of $10,000 investment.
Total returns assume reinvestment of dividends and, for Class A shares,
reflect the deduction of each Portfolio's maximum sales charge of 3.75% for the
Bond Portfolio and 4.75% for the Managed Growth and Equity Portfolios. No sales
charge has been applied to the indices used for comparison. The value of an
investment in Class A shares is plotted in the line graphs. Past performance is
no guarantee of future results.
U.S. Government Agencies Principal
and Instrumentalities - 12.1% Amount Value
Federal Home Loan Bank Corp., 5.27%, 7/25/97 $4,000,000 $3,932,661
Federal National Mortgage Assn., 5.25%, 4/15/97 4,000,000 3,991,833
Federal National Mortgage Assn., 5.30%, 6/20/97 3,000,000 2,964,666
Federal National Mortgage Assn., 5.24%, 7/10/97 5,000,000 4,927,222
Federal National Mortgage Assn., 5.33%, 10/16/97 5,000,000 4,853,425
Total U.S. Government Agencies and Instrumentalities
(Cost $20,669,807) 20,669,807
Certificates of Deposit - 0.7%
Broadway Federal Savings & Loan, 5.25%, 8/20/97 (^) 100,000 100,000
Community Bank of the Bay, 5.50%, 10/7/97 (^) 100,000 100,000
Community Capital Bank, 5.15%, 1/20/98 (^) 100,000 100,000
Elk Horn Bank & Trust, 5.27%, 12/18/97 (^) 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, 5.45%, 1/27/98 (^) 100,000 100,000
Self Help Credit Union, 5.05%, 7/15/97 (^) 100,000 100,000
Shore Bank & Trust, 5.20%, 12/19/97 (^) 100,000 100,000
South Shore Bank of Chicago, 5.35%, 10/30/97 (^) 100,000 100,000
Total Certificates of Deposit (Cost $1,200,000) 1,200,000
Commercial Paper - 17.8%
Accor SA, 5.36%, 4/16/97, LOC:
National Banque of Paris 4,000,000 3,991,067
Epson America, Inc., 5.50%, 6/9/97, LOC:
Dai-Ichi Kangyo Bank 3,000,000 2,968,375
Epson America, Inc., 5.65%, 6/11/97, LOC: Fuji Bank 6,000,000 5,933,142
Harley Davidson, 5.35%, 4/3/97 4,000,000 3,998,811
Harnischfeger, 5.63%, 4/30/97 8,000,000 7,963,718
Northwestern University, 5.27%, 6/5/97 2,500,000 2,476,212
Safeco Credit Company, Inc., 5.35%, 4/11/97 3,000,000 2,995,542
Total Commercial Paper (Cost $30,326,867) 30,326,867
Municipal Notes - 6.5%
New York City General Obligation Bonds, 5.50%,
4/30/97, LOC: Societe Generale 3,500,000 3,500,000
New York City General Obligation Bonds, 5.50%,
6/18/97, LOC: Societe Generale 3,500,000 3,500,000
Oakland Alameda County, 5.35%, 4/1/97, LOC:
Canadian Imperial 4,000,000 4,000,000
Total Municipal Notes (Cost $11,000,000) 11,000,000
Taxable Variable Principal
Rate Demand Notes - 60.8% Amount Value
Alabama H/M Partners LLC Community Development VRDN,
5.90%, 10/01/20, LOC: Amsouth Bank $4,600,000 $4,600,000
Alabama State Industrial Development Revenue VRDN,
5.85%, 12/1/19, LOC: Chemical Bank 5,760,000 5,760,000
Allegheny County Development Authority Revenue VRDN,
5.75%, 2/15/12,LOC:First National Bank of Chicago 5,500,000 5,500,000
Arbor Properties, Inc. VRDN, 5.90%, 11/1/21,
LOC: Amsouth Bank 4,900,000 4,900,000
Aspen Institute Inc. VRDN, 5.86%, 12/1/04,
LOC: First National Bank of Maryland 2,410,000 2,410,000
Assisted Living Funding, Ltd. VRDN, 5.40%, 12/1/97,
LOC: First Union Bank 7,650,000 7,650,000
Barton Healthcare LLC VRDN, 5.70%, 2/15/25,
LOC: American National Bank & Trust 900,000 900,000
Bexar County Health Facilities Revenue VRDN, 5.98%, 2/1/22,
LOC: Kredietbank 2,665,000 2,665,000
Chapel Oaks Inc. Revenue VRDN, 5.75%, 10/1/26,
LOC: Allied Irish Bank 7,150,000 7,150,000
Gardena Certificates of Participation VRDN, 5.95%, 7/1/25,
LOC: Sumitomo Trust & Banking, Confirming
LOC: Dai-Ichi Kangyo Bank 4,960,000 4,960,000
Iowa Finance Authority Economic Development Revenue VRDN,
5.65%, 3/1/11, LOC: Rabobank Nederland 1,950,000 1,950,000
IPC Industries, Inc. VRDN, 5.85%, 10/1/11,
LOC: National Bank of Canada 6,405,000 6,405,000
Liliha Partners Revenue VRDN, 6.15%, 8/1/24,
LOC: First Hawaiian Bank 4,000,000 4,000,000
Memphis Center Finance Corp. Multi-family Housing Revenue
VRDN, 5.95%, 11/1/30, LOC:
National Bank of Commerce 345,000 345,000
Montgomery County Industrial Building Revenue VRDN,
5.85%, 8/1/06, LOC: Fleet Bank 2,220,000 2,220,000
Montgomery County Industrial Development
Authority Revenue
VRDN, 5.80%, 3/1/10, LOC: Corestates 665,000 665,000
Mt. Vernon Industrial Solid Waste Disposal
Revenue VRDN, 5.90%,
11/1/11, LOC: Citizens National Bank of Evansville,
Confirming
LOC: Suntrust Bank 3,350,000 3,350,000
Oxnard Finance Authority Lease Revenue VRDN,
5.70%, 6/1/06,
LOC: Union Bank of California 5,360,000 5,360,000
Pennsylvania Economic Development Financing
Authority Revenue
VRDN, 5.45%, 7/1/16, LOC: Mellon Bank 3,800,000 3,800,000
Physicians Plus Medical Group VRDN, 5.90%, 8/1/16,
LOC: Marshall & Ilsley Bank 7,850,000 7,850,000
Sault Sainte Marie Tribe Building Authority
Revenue VRDN, 5.94%,
6/1/03, LOC: First America Bank of Michigan 7,440,000 7,440,000
St. Josephs County Multi-family Housing VRDN,
Corby Apartments,
5.83%, 6/1/27, LOC: Federal Home Loan Bank 345,000 345,000
St. Josephs County Multi-family Housing VRDN, Pin Oak
Apartments, 5.83%, 6/1/27, LOC:
Federal Home Loan Bank 940,000 940,000
St. Josephs County Multi-family Housing VRDN, West Manor
Apartments, 5.83%, 6/1/27,
LOC: Federal Home Loan Bank 720,000 720,000
Taxable Variable Principal
Rate Demand Notes (Cont'd) Amount Value
TLC Holdings LLC VRDN, 5.85%, 6/1/26,
LOC: Columbus Bank & Trust $4,925,000 $4,925,000
Virginia State Housing Development Authority Revenue
VRDN, 5.60%, 1/1/34 3,800,000 3,800,000
W.L. Petrey Wholesaling, Inc. VRDN, 5.85%, 3/1/08,
LOC: Southtrust Bank of Alabama 3,080,000 3,080,000
Total Municipal Obligations (Cost $103,690,000) 103,690,000
Repurchase Agreements - 3.8%
Union Bank of Switzerland:
6.70%, dated 3/31/97, due 4/1/97
($6,672,504 Federal National Mortgage Assn.,
7.50%, 9/1/26) 6,500,000 6,500,000
Total Repurchase Agreements (Cost $6,500,000) 6,500,000
TOTAL INVESTMENTS (Cost $173,386,674) - 101.7% 173,386,674
Other assets and liabilities, net (1.7%) (2,923,119)
Net Assets - 100% $170,463,555
Net Assets Consist of:
Paid-in capital applicable to 170,512,380 shares of beneficial interest;
unlimited number of no par value shares authorized $170,508,404
Undistributed net investment income 3,135
Accumulated net realized gain (loss) on investments (47,984)
Net Assets $170,463,555
Net Asset Value per Share $1.00
U.S. Government Agencies Principal
and Instrumentalities - 9.2% Amount Value
Federal Farm Medium Term Notes, 6.07%, 2/7/00 $7,250,000 $7,140,815
Federal Home Loan Bank Board, 6.32%, 12/4/97 4,000,000 4,013,520
Federal Home Loan Bank Board, 6.015%, 12/10/98 7,000,000 6,957,930
Federal Home Loan Bank Board, 9.30%, 1/25/99 3,000,000 3,143,730
Federal Home Loan Bank Board, 6.25%, 9/27/01 2,000,000 1,943,400
Federal National Mortgage Assn., 9.20%, 6/10/97 3,000,000 3,020,490
Federal National Mortgage Assn., 9.55%, 11/10/97 6,000,000 6,134,280
Federal National Mortgage Assn., 8.15%, 5/11/98 7,000,000 7,150,010
GNMA Single Family Mortgage Pool, 6.50%, 11/15/23 1,750,839 1,631,571
GNMA Single Family Mortgage Pool, 6.50%, 12/15/23 4,410,939 4,110,465
GNMA Single Family Mortgage Pool, 6.50%, 1/15/24 7,586,208 7,077,273
GNMA Single Family Mortgage Pool, 7.00%, 7/15/25 1,932,341 1,853,850
Total U.S. Government Agencies and Instrumentalities
(Cost $54,781,316) 54,177,334
Certificates of Deposit - 0.2%
Banco Solidario, 10.0625%, 8/3/97 (*) 301,617 301,617
Blackfeet National Bank, 5.00%, 11/13/97 (^) 92,000 92,000
D. Edward Wells Federal Credit Union, 5.00%,
11/20/97 (^) 50,000 47,794
First American Credit Union, 5.822%, 12/23/97 (^) 92,000 91,551
Mission Area Federal Credit Union, 4.95%, 11/18/97 (^) 50,000 49,979
Northeast Community Federal Credit Union, 4.50%,
11/18/97 (^) 50,000 49,815
South Shore Bank of Chicago, 5.15%, 12/5/97 (^) 100,000 99,576
South Shore Bank of Chicago, 5.35%, 2/9/98 350,000 348,439
Total Certificates of Deposit (Cost $1,085,617) 1,080,771
Convertible Debenture Bonds - 0.0%
WorldWater, Inc., 9.00%, 9/28/97 (*) 150,000 150,000
Total Convertible Debenture Bonds (Cost $150,000) 150,000
Community Loan Notes - 0.9%
Accion International Corp., 4.00%, 1/13/97 250,000 245,208
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%, 1/13/98 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 71,408
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%, 1/13/00 105,000 102,987
Delaware Valley Community Reinvestment Fund,
3.50%, 6/30/99 75,000 71,408
Eastside Community Investment, 2.50%, 4/4/97 100,000 96,604
Ecumenical Development Corp., 5.00%, 12/31/01 100,000 98,551
Principal
Community Loan Notes (Cont'd) Amount Value
Enterprise Loan Fund, 3.50%, 6/30/98 $50,000 $47,436
Environmental Enterprises, Inc., 4.00%, 6/28/99 125,000 119,012
First State Community Loan Fund, 4.00%, 1/15/99 25,000 24,521
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 Development, 3.00%, 10/1/01 250,000 233,820
Institute for Community Economics, 4.00%, 1/13/00 150,000 147,125
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
Michigan Housing Trust, 4.00%, 6/28/99 100,000 95,210
Micro Industry Credit Rural Corp., 4.00%, 1/13/98 100,000 98,083
Minnesota Non Profit Assistance Fund, 3.50%, 4/7/00 200,000 192,740
Montana Women's Capital, 4.00%, 6/30/99 50,000 47,605
National Fed of Community Development Credit Union,
3.00%, 4/7/98 300,000 288,408
New Alternative Federal, 5.00%, 11/18/97 50,000 48,596
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 23,803
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%, 1/13/98 25,000 24,521
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,
10.75%, 4/15/97 (b) 363,119 90,431
Vermont Community Loan Fund, 4.00%, 4/30/01 200,000 193,208
Washington Area Community Investment Fund,
4.00%, 12/31/01 317,000 297,748
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 24,150
Total Community Loan Notes (*)(Cost $5,544,770) 5,107,666
Corporate Bonds - 32.0%
Advanta Corp., 7.00%, 5/01/01 3,000,000 2,892,180
All Media Solutions, 9.00%, 2/1/98 (*) 50,000 50,000
Allmerica Financial Corp., 7.625%, 10/15/25 7,000,000 6,656,370
American General Institute Capital, 7.57%, 12/1/45 3,000,000 2,698,941
American Re Corp., 7.45%, 12/15/26 8,000,000 7,635,360
AON Capital Trust, 8.205%, 1/1/27 1,000,000 991,650
AON Corp., 6.875%, 10/1/99 1,000,000 999,000
Bank One, 7.375%, 12/1/02 1,400,000 1,408,652
Bankamerica Corp., 8.125%, 2/1/02 2,000,000 2,069,560
Bankers Trust New York, 7.25%, 10/15/11 4,000,000 3,782,040
BellSouth Savings & Security, 9.19%, 7/1/03 1,017,067 1,087,365
Principal
Corporate Bonds (Cont'd) Amount Value
BT Institutional Capital Trust, 8.09%, 12/1/26 $4,000,000 $3,802,012
Cardinal Health, Inc., 6.00%, 1/15/06 5,000,000 4,548,250
Chase Manhattan Auto Owner Trust, 5.95%, 10/15/99 5,000,000 4,982,200
Chase Manhattan Corp., 7.125%, 2/1/07 4,250,000 4,126,707
Clean Air Cab, 6.00%, 12/31/98 (*) 250,000 124,819
Conseco, Inc., 8.796%, 4/1/27 5,000,000 4,956,135
Continental Cablevision, Inc., 8.30%, 5/15/06 3,250,000 3,363,165
Corestates Capital Corp., 6.75%, 11/15/06 3,000,000 2,830,650
Dayton Hudson Corp., 10.00%, 12/1/00 5,000,000 5,457,600
Deutsche Bank Financial, Inc., 6.70%, 12/13/06 2,500,000 2,377,425
Donnelly, R.R., and Sons, Co., 6.70%, 7/5/05 3,000,000 2,886,840
First National Bank Commerce, 6.50%, 1/14/00 4,000,000 3,956,268
First Union Capital One, 7.935%, 1/15/27 3,000,000 2,885,880
First Union Corp., 7.50%, 7/15/06 2,000,000 1,988,340
Goldman Sachs Group L.P., 6.20%, 12/15/00 2,000,000 1,944,520
Household Finance Corp., 8.375%, 11/15/01 1,500,000 1,566,810
Ikon Capital Resources, 6.94%, 3/27/01 3,000,000 2,980,500
International Business Machine Corp., 7.00%,
10/30/25 1,500,000 1,365,390
International Lease Finance Corp., 6.375%, 1/18/00 5,000,000 4,922,350
Kaiser Foundation Hospitals, 7.63%, 4/19/99 2,000,000 2,034,140
Keycorp, 7.50%, 6/15/06 3,000,000 2,986,530
McCormick & Co., Inc., 8.95%, 7/1/01 1,750,000 1,859,252
Mellon Capital II, 7.995%, 1/15/27 2,000,000 1,936,904
Michigan Bell Telephone Co., 9.25%, 11/15/98 1,000,000 1,041,790
Money Store Auto Trust, 6.19%, 12/20/00 5,000,000 4,991,406
National Association of People with AIDS,
10.00%, 7/31/97 (*)(b) 250,000 166,650
Nationsbank Corp., 7.50%, 9/15/06 5,000,000 4,974,350
NBD Bank, 6.25%, 8/15/03 5,920,000 5,607,483
NCB Affordable Housing / Market Rate
Cooperative First
Mortgage Certificates Series 1993-3 B,
6.565012%, 1/1/99 (*) 2,592,436 2,466,054
Norwest Financial, Inc., 6.8752%, 12/15/99 2,000,000 1,999,720
Oracle Corp., 6.72%, 2/15/04 2,500,000 2,412,125
Penny (J.C.), Inc., 5.375%, 11/15/98 2,500,000 2,454,525
Picturetalk, Inc., 8.00%, 3/13/99 (*) 500,000 500,000
Poland Partners, 5.875%, 4/13/04 (*) 455,105 269,248
Quality Food Centers, Inc., 8.70%, 3/15/07 1,000,000 965,000
Renaissance Capital Trust, 8.54%, 3/1/27 3,500,000 3,415,160
Riggs Capital Trust II, 8.875%, 3/15/27 7,000,000 6,989,220
Security Benefit Life Co., 8.75%, 5/15/16 3,000,000 3,066,915
Snap On, Inc., 6.625%, 10/1/05 2,500,000 2,392,100
Societe Generale New York, 7.40%, 6/1/06 5,000,000 4,938,600
Southern California Gas, 6.50%, 12/15/97 2,500,000 2,507,750
State Street Institutional Capital, 8.035%, 3/15/27 2,000,000 1,954,740
Take the Lead, 9.00%, 9/27/00 (*) 100,000 100,000
Time Warner, Inc., 8.58%, 6/22/98 7,000,000 7,134,877
Toronto Dominion Bank, 6.50%, 1/15/07 5,000,000 4,929,135
Transamerica Corp., 6.80%, 3/15/99 1,000,000 1,000,640
Transamerica Corp., 9.375%, 3/1/08 3,500,000 3,950,310
Wells Fargo Capital I, 6.875%, 4/1/06 4,000,000 3,826,960
Wells Fargo Capital I, 7.96%, 12/15/26 2,000,000 1,933,536
Principal
Corporate Bonds (Cont'd) Amount Value
World Com, Inc., 7.55%, 4/1/04 $3,000,000 $2,981,250
Xerox Capital Trust I, 8.00%, 2/1/27 9,275,000 8,938,057
Total Corporate Bonds (Cost $192,811,010) 188,061,406
Municipal Obligations - 2.5%
Chickasaw Nation Certificates of Participation,
10.00%, 8/1/03 (c) 5,855,000 5,269,500
Maryland State Economic Development Corp. Revenue Bonds,
8.00%, 10/1/05 3,000,000 2,963,520
Maryland State Economic Development Corp. Revenue Bonds,
8.625%, 10/1/19 3,000,000 3,048,780
Rochester, New York, 6.05%, 8/15/02 2,000,000 1,903,080
Texas State General Obligation Bonds, 7.35%, 12/1/21 1,995,000 1,843,938
Total Municipal Obligations (Cost $15,856,439) 15,028,818
Repurchase Agreements - 2.2%
Paine Webber: 6.35%, dated 3/31/97, due 4/1/97
(Collateral: $13,355,183 FNMA 6.50%, 3/1/09) 13,000,000 13,000,000
Total Repurchase Agreements (Cost $13,000,000) 13,000,000
Limited Partnership Interest - 0.3% Shares
Environment Allies Investment Trust 36,500 37,507
Environment Private Equity Fund 180,000 123,276
Global Environment Emerging Markets Fund (#) 2 767,154
GEEMF Partners (#) 255,500 255,500
Hambrecht & Quist Environmental Technology Fund 500,000 356,726
HFG Expansion Fund I (#) 125,000 91,250
Liberty Environmental Partners (#) 350,000 350,000
Ukraine Fund (#) 52,500 47,371
Total Limited Partnership Interest (*)(Cost $2,190,161) 2,028,784
Equity Securities - 53.2%
Basic Industries - 0.8%
Praxair, Inc. 63,900 2,867,512
Sigma Aldrich 57,500 1,775,312
4,642,824
Business Equipment & Services - 2.3%
Automatic Data Processing, Inc. 60,000 2,512,500
Compaq Computer Corp.(#) 48,200 3,693,325
Hewlett Packard Co. 133,350 7,100,887
Miller Herman, Inc. 100 6,825
13,313,537
Equity Securities (Cont'd) Shares Value
Capital Goods - 1.7%
Avery Dennison Corp. 88,930 $3,423,805
Illinois Tool Works, Inc. 78,000 6,366,750
9,790,555
Consumer Products and Services - 3.1%
Avon Products, Inc. 70,500 3,701,250
Colgate Palmolive Co. 36,100 3,596,462
CUC International, Inc. (#) 113,725 2,558,812
Fort Howard Corp. (#) 53,600 1,668,300
Gillette Co. 66,400 4,822,300
Sealed Air Corp. (#) 51,125 2,102,515
18,449,639
Electrical Equipment - 0.6%
Belden, Inc. 95,000 3,384,375
Energy - 2.2%
Baker Hughes, Inc. 105,000 4,029,375
MCN Corp. 137,000 3,853,125
Seitel, Inc. (#) 74,700 2,642,512
Smith International, Inc. (#) 48,300 2,203,687
12,728,699
Financial Services - 10.5%
Aflac, Inc. 156,172 5,856,450
American International Group, Inc. 64,112 7,525,146
Bank of Boston Corp. 39,950 2,676,650
Bank One Corp. 89,500 3,557,625
BankAmerica Corp. 34,900 3,516,175
Chase Manhattan Corp. 78,700 7,368,287
Federal National Mortgage Assn. 178,620 6,452,647
Greentree Financial Corp. 194,600 6,567,750
MGIC Investment Corp. 32,100 2,271,075
Price (T. Rowe) Associates, Inc. 120,800 4,484,700
State Street Boston Corp. 19,300 1,338,937
Sunamerica, Inc. 81,100 3,051,387
Umbono Investments (#)(a) 2,846,419 6,891,431
61,558,260
Food Products - 2.2%
CPC International 57,800 4,739,600
Heinz H J Co. 68,400 2,701,800
Hershey Foods Corp. 72,600 3,630,000
Interstate Bakeries Corp. 40,600 1,918,350
Odwalla, Inc. (#)(*) 5,879 77,161
13,066,911
Industrial Products - 0.5%
Dover Corp. 60,900 3,197,250
Equity Securities (Cont'd) Shares Value
Media & Publishing - 1.0%
Disney (Walt) Co. 50,495 $3,686,135
Regal Cinemas, Inc. (#) 70,100 1,892,700
UOL Publishing, Inc. (#)(*) 30,823 332,892
5,911,727
Merchandising & Retail - 4.8%
Autozone, Inc. (#) 149,900 3,372,750
Barnes & Noble, Inc. 30 1,065
Caseys General Stores, Inc. 68,300 1,314,775
Consolidated Stores Corp. (#) 66,768 2,353,572
Dollar General Corp. 105,750 3,304,687
Fastenal Co. 9,500 332,500
Home Depot, Inc. 81,000 4,333,500
Jones Apparel Group, Inc. (#) 63,100 2,342,587
Nordstrom, Inc. 73,200 2,772,450
Office Max, Inc. (#) 216,300 2,811,900
Penny (J.C.), Inc. 38,900 1,852,612
Real Goods Trading Corp. (#)(*) 125,000 375,000
Viking Office Products, Inc. 152,600 2,956,625
28,124,023
Pharmaceutical & Health Care - 7.4%
Amgen (#) 58,200 3,251,925
Boston Scientific Corp. (#) 56,625 3,496,593
Cardinal Health, Inc. 103,450 5,625,093
Guidant Corp. 28,200 1,734,300
Hayes Medical Services (#)(*) 303,030 500,000
Health Care & Retirement Corp. (#) 21,800 626,750
Johnson & Johnson 102,100 5,398,537
Medtronic, Inc. 49,400 3,075,150
Merck & Co., Inc. 57,512 4,845,386
Pall Corp. 95,700 2,213,062
R.P. Scherer Corp. (#) 59,000 3,060,625
Schering Plough Corp. 90,500 6,583,875
United Healthcare Corp. 71,600 3,409,950
43,821,246
Property Management - 1.0%
Post Properties, Inc. 90,300 3,442,687
Rouse Co. 87,600 2,562,300
6,004,987
Technology - 11.6%
Atmel Corp. (#) 73,300 1,754,618
Bay Networks, Inc. (#) 60,000 1,072,500
BMC Software, Inc. (#) 55,010 2,537,336
Cisco Systems, Inc. (#) 176,800 8,508,500
Computer Associates International, Inc. 79,625 3,095,421
DSC Communications Corp. (#) 48,000 1,005,000
EMC Corp. (#) 195,880 6,953,740
Intel Corp. 41,700 5,801,512
Equity Securities (Cont'd) Shares Value
Technology (Cont'd)
L.M. Ericsson (ADR) 62,265 $2,105,335
Microsoft Corp. (#) 77,320 7,089,277
Oracle Systems Corp. (#) 169,942 6,553,388
Solectron Corp. (#) 83,700 4,195,462
Sterling Commerce, Inc. (#) 91,300 2,647,700
Sterling Software, Inc. (#) 94,500 2,610,562
Sun Microsystems, Inc. (#) 91,260 2,635,132
3Com Corp. (#) 100,800 3,301,200
US Robotics, Inc. (#) 41,600 2,303,600
Vishay Intertechnology, Inc. (#) 178,400 3,947,100
68,117,383
Transportation - 0.3%
Comair Holdings, Inc. 85,450 1,858,537
Utilities - 2.1%
Ameritech Corp. 61,290 3,769,335
California Energy, Inc. (#) 100 3,400
Century Telephone Enterprises 97,175 2,866,662
SBC Communications, Inc. 107,100 5,635,799
12,275,196
Venture Capital - 1.1%
Agraquest, Inc. (#)(*) 190,477 200,000
All Media Solutions, Inc. (#)(*) 307,692 200,000
Aviron (#)(*) 74,074 633,333
Calypte Biomed (#)(*) 100,000 607,500
Clean Air Cab (#)(*) 80 0
Coastal Venture Partners (#)(*) 80,000 80,000
Community Bank of the Bay (#)(*) 4,000 100,000
Community Growth Fund (*) 1,209,210 520,413
Earths Best Stock (#)(*) 67,500 32,008
Eastern Utilities Associates (#)(*) 3,049 27,632
Eco Timber International, Inc. (#)(*) 12,468 99,993
Energia Global, Inc., Series A,
Convertible Preferred (#)(*) 72,986 510,902
Energia Global, Inc., Series B,
Convertible Preferred (#)(*) 28,571 199,997
Evergreen Solar (#)(*) 100,000 150,000
Fountainhead Technologies, Inc., Preferred (#)(*) 3,295 25,003
Knowaste Technologies, Inc. (#)(*) 432 212,177
Knowaste Technologies, Inc., Class A, Preferred (#)(*) 31 22,390
Living Technologies, Inc. (#)(*) 25,000 100,000
Paradigm Biosciences (#)(*) 125,000 250,000
Picturetalk (warrants) (#)(*) 22,222 0
Poland Partners (#)(*) 166,000 166,000
Pro Fund International (#)(*) 4,553 4,553
Pro Fund International, Preferred (#)(*) 450,723 450,723
Quadrant Healthcare Plc. (#)(*) 305,263 477,130
Security Dynamics Technologies, Inc. (#)(*) 1,026 25,137
Ultrafem, Inc. (#)(*) 25,000 328,125
Equity Securities (Cont'd) Shares Value
Venture Capital (Cont'd)
Ultrafem, Inc. (warrants) (#)(*) 175,000 $791,853
Wild Planet Toys, Inc., Series B, Preferred (#)(*) 476,190 357,142
Wind Harvest Co., Inc., Series A, Preferred (#)(*) 8,696 50,000
6,622,011
Total Equity Securities (Cost $275,594,254) 312,867,160
TOTAL INVESTMENTS (Cost $561,013,567) - 100.5% 591,501,939
Other assets and liabilities, net (0.5%) (3,037,009)
Net Assets - 100% $588,464,930
Net Assets Consist of:
Paid-in capital applicable to the following shares of beneficial interest;
unlimited number of no par shares authorized
Class A: 19,702,143 shares outstanding 522,906,974
Class C: 251,653 shares outstanding 7,516,788
Undistributed net investment income 597,706
Accumulated net realized gain (loss) 26,955,090
Net unrealized appreciation (depreciation) on investments 30,488,372
Net Assets $588,464,930
Net Asset Value per Share
Class A (based on net assets of $581,117,605) $29.50
Class C (based on net assets of $7,347,325) $29.20
U.S. Government Agencies Principal
and Instrumentalities - 7.3% Amount Value
Federal Home Loan Mortgage Corp., 7.28%, 5/8/00 $1,000,000 $1,005,680
Federal National Mortgage Assn., 5.49%, 10/2/03 2,000,000 1,838,180
Federal National Mortgage Assn., 6.82%, 8/23/05 1,500,000 1,476,570
Total U.S. Government Agencies and Instrumentalities
(Cost $4,315,323) 4,320,430
Corporate Bonds - 68.3%
Advanta Corp., 7.00%, 5/01/01 2,000,000 1,928,120
American General Institutional Capital A,
7.57%, 12/01/45 1,000,000 899,647
Aon Capital Trust A, 8.205%, 1/01/27 1,000,000 991,650
BellSouth Savings & Employee ESOP, 9.125%, 7/1/03 189,948 201,937
Chase Manhattan Corp, 7.125%, 2/01/07 2,000,000 1,941,980
Conseco Financial Trust, 8.796%, 4/01/27 3,000,000 2,973,681
First Union Corp., 7.50%, 7/15/06 3,000,000 2,982,510
Goldman Sachs Group LP, 6.20%, 12/15/00 5,100,000 4,958,526
Ikon Capital Resources, 6.58%, 3/29/99 3,000,000 2,984,100
KeyCorp, 7.50%, 6/15/06 2,000,000 1,991,020
Liberty Mutual Capital Corp., 7.90%, 3/14/03 1,000,000 1,004,708
Mountain State Telephone & Telegraph, 9.50%, 5/1/00 300,000 320,541
National Cooperative Bank, 6.8266850%, 7/1/12 777,731 730,188
NationsBank Corp., 7.50%, 9/15/06 1,500,000 1,492,305
New England Telephone & Telegraph Co.,
5.05%, 10/1/98 500,000 490,010
Norwest Corp., 6.65%, 10/15/23 700,000 603,603
Pacific Bell Telephone, 6.25%, 3/1/05 500,000 467,905
Payless Cashways, Inc., 9.125%, 4/15/03 650,000 380,250
Polaroid Corp., 8.00%, 3/15/99 800,000 817,048
Riggs Capital Trust II, 8.875%, 3/15/27 3,500,000 3,494,610
Santander Financial Issuances Ltd.,
7.875%, 4/15/05 2,435,000 2,482,799
State Street Institutional Capital B,
8.035%, 3/15/27 1,000,000 977,370
Time Warner Inc., 8.58%, 6/22/98 3,000,000 3,057,805
Toronto Dominion Bank NY, 6.50%, 1/15/07 1,000,000 985,827
Xerox Capital Trust I, 8.00%, 2/01/27 1,500,000 1,445,508
Total Corporate Bonds (Cost $41,322,690) 40,603,648
Municipal Obligations - 16.1%
Atlanta Downtown Development Authority Revenue Bonds,
6.875%, 2/1/21 650,000 591,104
California State General Obligation Bonds,
8.15%, 9/1/01 1,500,000 1,550,160
Conneaut School District General Obligation Bonds,
6.60%, 5/1/04 400,000 385,740
Connecticut State General Obligation Bonds,
6.00%, 1/15/03 350,000 330,796
Harrisburg, Pennsylvania, U.S. Government
Guaranteed Notes, 7.14%, 8/1/02 90,000 90,343
Missouri Higher Education Student Loan Revenue Bonds,
6.80%, 2/15/01 1,000,000 989,200
Principal
Municipal Obligations (Cont'd) Amount Value
Nassau County, New York, U.S. Government Guaranteed Notes,
7.12%, 8/1/01 $450,000 $451,926
New York State General Obligation Bonds,
7.65%, 5/1/99 800,000 810,960
New York State Job Development Authority
Revenue Bonds, 7.70%, 3/1/03 1,500,000 1,524,015
Newburgh, New York, U.S. Government Guaranteed Notes,
7.12%, 8/1/01 110,000 110,471
Oregon State General Obligation Bonds, 7.75%, 7/1/05 490,000 499,952
Pompano Beach, Florida, U.S. Government Guaranteed Notes
7.12%, 8/1/01 565,000 567,418
San Diego County Pension Obligation Bonds,
6.38%, 8/15/03 700,000 657,881
Scranton, Pennsylvania, U.S. Government Guaranteed Notes,
7.12%, 8/1/01 425,000 426,819
Scranton, Pennsylvania, U.S. Government Guaranteed Notes,
7.14%, 8/1/02 100,000 100,381
Somerville, Massachusetts, U.S. Government Guaranteed Notes,
7.12%, 8/1/01 475,000 477,033
Total Municipal Obligations (Cost $9,592,427) 9,564,199
Repurchase Agreements - 6.7%
Paine Webber 6.35%, dated 3/31/97, due 4/1/97
($4,110,498 Federal National Mortgage Assn.,
6.50%, 3/1/09) 4,000,000 4,000,000
Total Repurchase Agreements (Cost $4,000,000) 4,000,000
Equity Securities - 1.9% Shares
Northern Borders Partners, LP (*) 41,000 1,132,625
Total Equity Securities (Cost $886,625) 1,132,625
TOTAL INVESTMENTS (Cost $60,117,065) - 100.3% $59,620,902
Other assets and liabilities, net (.3%) (170,640)
Net Assets - 100% $59,450,262
Net Assets Consist of:
Paid-in capital applicable to 3,728,152 Class A shares
of beneficial interest; unlimited number of no par
value shares authorized $60,340,068
Undistributed net investment income 106,456
Accumulated net realized gain (loss) (500,099)
Net unrealized appreciation (depreciation) on investments (496,163)
Net Assets $59,450,262
Net Asset Value per Share $15.95
Equity Securities - 95.6% Shares Value
Business Equipment & Services - 7.3%
Ikon Office Solutions, Inc. 79,500 $2,663,250
International Business Machines Corp. 7,500 1,030,312
Viad Corp. 159,200 2,547,200
Xerox Corp. 40,000 2,275,000
8,515,762
Basic Industries - 6.7%
Morton International, Inc. 71,000 2,999,750
Nalco Chemical Co. 80,100 2,993,737
Praxair, Inc. 41,700 1,871,287
7,864,774
Building, Construction & Furnishing - 2.4%
Masco Corp. 78,400 2,802,800
Consumer Products - 10.1%
American Greetings Corp. 124,500 3,976,219
Black & Decker Corp. 92,400 2,968,350
Colgate Palmolive Co. 23,000 2,291,375
Premark International, Inc. 128,000 2,544,000
11,779,944
Energy - 3.5%
Enron Corp. 94,000 1,950,500
United Meridian Corp. (#) 70,000 2,108,750
4,059,250
Financial Services - 12.9%
Aetna, Inc. 33,000 2,833,875
BankAmerica Corp. 30,000 3,022,500
Chase Manhattan Corp. 30,000 2,808,750
Chubb Corp. 54,000 2,909,250
USF&G Corp. 160,000 3,440,000
15,014,375
Industrial Products - 3.2%
Dover Corp 70,500 3,701,250
Pharmaceutical & Health Care - 4.6%
Merck & Co., Inc. 20,000 1,685,000
Schering Plough Corp. 50,000 3,637,500
5,322,500
Retail - 14.0%
Albertsons, Inc. 80,000 2,720,000
Autozone, Inc. (#) 105,000 2,362,500
Equity Securities (Cont'd) Shares Value
Retail (Cont'd)
Federated Department Stores, Inc. (#) 95,000 $3,123,125
General Nutrition Companies, Inc. (#) 150,000 3,037,500
Liz Claiborne, Inc. 70,000 3,053,750
Reebok International, Ltd. 1,000 44,875
Sunglass Hut International, Inc. (#) 287,000 2,009,000
16,350,750
Technology - 15.5%
Cabletron Systems, Inc. (#) 90,000 2,632,500
Cascade Communications Corp. (#) 45,000 1,186,875
Computer Associates International, Inc. 72,000 2,799,000
Informix Corp. (#) 107,000 1,618,375
Intel Corp. 21,000 2,921,625
Symantec Corp. (#) 185,000 2,636,250
3Com Corp. (#) 45,000 1,473,750
US Robotics Corp. (#) 51,400 2,846,275
18,114,650
Transportation - 8.4%
AMR Corp. (#) 41,600 3,432,000
Ryder System, Inc. 115,000 3,363,750
US Freightways Corp. 117,000 3,027,375
9,823,125
Utilities - 7.0%
Ameritech Corp. 50,000 3,075,000
Pacific Telesis Group 71,000 2,680,250
SBC Communications, Inc. 45,000 2,368,126
8,123,376
Total Equity Securities (Cost $104,768,362) 111,472,556
Principal
Repurchase Agreements - 7.7% Amount
Union Bank of Switzerland: 6.70%, dated 3/31/97, due 4/1/97
(Collateral: $9,243,382 FNMA, 8.00%, 3/1/23) 9,000,000 9,000,000
Total Repurchase Agreements (Cost $9,000,000) 9,000,000
TOTAL INVESTMENTS (Cost $113,768,362) - 103.3% 120,472,556
Other assets and liabilities, net (3.3%) (3,889,831)
Net Assets - 100% $116,582,725
Principal
Net Assets Consist of: Amount Value
Paid-in capital applicable to the following shares of beneficial interest;
unlimited number of no par shares authorized
Class A: 5,040,223 shares outstanding $97,360,207
Class C: 200,080 shares outstanding 4,120,072
Undistributed net investment income 122,347
Accumulated net realized gain (loss) 8,275,905
Net unrealized appreciation (depreciation) on investments 6,704,194
Net Assets $116,582,725
Net Asset Value per Share
Class A (based on net assets of $112,326,634) $22.29
Class C (based on net assets of $4,256,091) $21.27
Net Investment Income
Investment Income
Interest income $4,593,018 $9,905,386
Dividend income (net of foreign taxes withheld of $587
for Managed Growth) - 1,566,522
Total investment income 4,593,018 11,471,908
Expenses
Investment advisory fee 409,283 1,893,616
Transfer agency fees and expenses 244,522 429,596
Distribution Plan expenses:
Class A - 714,068
Class C - 36,516
Trustees' fees and expenses 27,793 102,300
Custodian fees 11,410 52,577
Registration fees 15,048 25,670
Reports to shareholders 73,324 203,381
Professional fees 7,209 32,619
Miscellaneous 27,142 145,695
Reimbursement from Advisor (88,076) (243)
Total expenses 727,655 3,635,795
Fees paid indirectly (11,410) (52,577)
Net expenses 716,245 3,583,218
Net Investment Income 3,876,773 7,888,690
Realized and Unrealized
Gain (Loss) on Investments
Net realized gain (loss) on:
Securities 1,226 47,555,199
Futures - (21,450)
Foreign currencies - (1,998)
1,226 47,531,751
Change in unrealized appreciation or depreciation - (43,747,538)
Net Realized and Unrealized
Gain (Loss) on Investments 1,226 3,784,213
Increase (Decrease) in
Net Assets Resulting
From Operations $3,877,999 $11,672,903
Net Investment Income
Investment Income
Interest income $2,191,703 $58,303
Dividend income 24,349 728,413
Total investment income 2,216,052 786,716
Expenses
Investment advisory fee 197,766 300,534
Transfer agency fees and expenses 62,731 139,817
Distribution Plan expenses:
Class A 62,223 125,402
Class C 1,098 18,254
Trustees' fees and expenses 10,712 17,543
Custodian fees 14,663 8,324
Registration fees 11,503 17,025
Reports to shareholders 26,423 50,937
Professional fees 3,166 4,417
Miscellaneous 13,453 26,595
Reimbursement from Advisor (1,057) -
Total expenses 402,681 708,848
Fees paid indirectly (14,663) (8,324)
Net expenses 388,018 700,524
Net Investment Income 1,828,034 86,192
Realized and Unrealized
Gain (Loss) on Investments
Net realized gain (loss) 400,449 9,708,693
Change in unrealized appreciation or depreciation (779,511) (4,320,063)
Net Realized and Unrealized
Gain (loss) on Investments (379,062) 5,388,630
Increase (Decrease) in
Net Assets Resulting
From Operations $1,448,972 $5,474,822
Increase (Decrease) in Net Assets
Operations
Net investment income $3,876,773 $7,717,644
Net realized gain (loss) 1,226 (3,983)
Increase (Decrease) in Net Assets
Resulting From Operations 3,877,999 7,713,661
Distributions to shareholders from
Net investment income (3,874,501) (7,717,375)
Capital share transactions:
Shares sold 78,717,139 166,829,716
Reinvestment of distributions 3,564,053 7,211,144
Shares redeemed (78,337,457)(161,516,395)
3,943,735 12,524,465
Total Increase (Decrease)
in Net Assets 3,947,233 12,520,751
Net Assets
Beginning of period 166,516,322 153,995,571
End of period (including undistributed net investment
income of $3,135 and $863, respectively) $170,463,555 $166,516,322
Capital Share Activity
Shares sold 78,717,139 166,829,716
Reinvestment of distributions 3,564,053 7,211,144
Shares redeemed (78,337,457)(161,516,395)
Total capital share activity 3,943,735 12,524,465
Increase (Decrease) in Net Assets
Operations
Net investment income $7,888,690 $14,907,120
Net realized gain (loss) 47,531,751 21,811,370
Change in net unrealized appreciation or
depreciation (43,747,538) 19,966,340
Increase (Decrease) in Net Assets
Resulting From Operations 11,672,903 56,684,830
Distributions to shareholders from
Net investment income:
Class A Shares (7,615,542) (14,622,197)
Class C Shares (50,724) (79,219)
Net realized gain:
Class A Shares (39,194,997) (63,482,198)
Class C Shares (483,529) (481,235)
Total distributions (47,344,792) (78,664,849)
Capital share transactions:
Shares sold:
Class A Shares 29,062,648 75,161,055
Class C Shares 1,687,269 3,298,057
Reinvestment of distributions:
Class A Shares 43,484,921 71,965,131
Class C Shares 521,544 548,576
Shares redeemed:
Class A Shares (50,701,692) (91,748,763)
Class C Shares (1,115,214) (1,093,458)
Total capital share transactions 22,939,476 58,130,598
Total Increase (Decrease)
in Net Assets (12,732,413) 36,150,579
Net Assets
Beginning of period 601,197,343 565,046,764
End of period (including undistributed net investment
income of $597,706 and $439,804, respectively) $588,464,930 $601,197,343
Capital Share Activity
Shares sold:
Class A Shares 928,551 2,456,495
Class C Shares 54,071 108,790
Reinvestment of distributions:
Class A Shares 1,428,908 2,397,276
Class C Shares 17,312 18,464
Shares redeemed:
Class A Shares (1,619,152) (2,989,397)
Class C Shares (35,989) (35,721)
Total capital share activity 773,701 1,955,907
Increase (Decrease) in Net Assets
Operations
Net investment income $1,828,034 $3,612,447
Net realized gain (loss) 400,449 15,729
Change in net unrealized appreciation
or depreciation (779,511) (1,183,585)
Increase (Decrease) in Net Assets
Resulting From Operations 1,448,972 2,444,591
Distributions to shareholders from
Net investment income:
Class A Shares (1,826,963) (3,552,786)
Class C Shares (4,173) (54,625)
Net realized gain:
Class A Shares - -
Class C Shares - -
Total distributions (1,831,136) (3,607,411)
Capital share transactions:
Shares sold:
Class A Shares 5,948,679 11,109,094
Class C Shares 74,933 661,435
Reinvestment of distributions:
Class A Shares 1,413,289 2,753,789
Class C Shares 4,537 49,153
Shares redeemed:
Class A Shares (9,768,417) (13,397,047)
Class C Shares (1,540,798) (152,489)
Total capital share transactions (3,867,777) 1,023,935
Total Increase (Decrease)
In Net Assets (4,249,941) (138,885)
Net Assets
Beginning of period 63,700,203 63,839,088
End of period (including undistributed net investment
income of $106,456 and $109,558, respectively) $59,450,262 $63,700,203
Capital Share Activity
Shares sold:
Class A Shares 365,137 679,640
Class C Shares 4,676 40,967
Reinvestment of distributions:
Class A Shares 87,104 169,469
Class C Shares 283 3,061
Shares redeemed:
Class A Shares (600,345) (822,989)
Class C Shares (95,628) (9,542)
Total capital share activity (238,773) 60,606
Increase (Decrease) in Net Assets
Operations
Net investment income $86,192 $112,016
Net realized gain (loss) 9,708,693 6,588,657
Change in net unrealized appreciation
or depreciation (4,320,063) 8,311,454
Increase (Decrease) in Net Assets
Resulting From Operations 5,474,822 15,012,127
Distributions to shareholders from
Net investment income:
Class A Shares (407) (262,483)
Class C Shares (33) (1,695)
Net realized gain:
Class A Shares (6,850,649) (7,816,026)
Class C Shares (232,825) (165,432)
Total distributions (7,083,914) (8,245,636)
Capital share transactions:
Shares sold:
Class A Shares 15,663,182 19,139,948
Class C Shares 1,451,379 1,179,087
Reinvestment of distributions:
Class A Shares 6,223,409 7,431,893
Class C Shares 221,462 164,558
Shares redeemed:
Class A Shares (9,408,502) (22,784,833)
Class C Shares (298,544) (310,498)
Total capital share transactions 13,852,386 4,820,155
Total Increase (Decrease)
in Net Assets 12,243,294 11,586,646
Net Assets
Beginning of period 104,339,431 92,752,785
End of period (including undistributed net investment
income (loss) of $122,347
and $36,595, respectively) $116,582,725 $104,339,431
Capital Share Activity
Shares sold:
Class A Shares 677,256 913,008
Class C Shares 65,511 57,668
Reinvestment of distributions:
Class A Shares 273,320 367,609
Class C Shares 10,163 8,348
Shares redeemed:
Class A Shares (406,134) (1,092,012)
Class C Shares (13,607) (15,221)
Total capital share activity 606,509 239,400
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 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. On
October 29, 1996, all outstanding Class C shares in the Bond Portfolio were
converted into an equivalent value of Class A shares. This transaction was a
non-taxable exchange and no sales charge was applied to the Class A shares
issued.
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.
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.
Estimates: The preparation of the financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amount of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses during the reported
period. Actual results could differ from those estimates.
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: $156,934 for Managed Growth,
$24,797 for Bond and $99,096 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 period, purchases and sales of investments, other than
short-term securities, were:
Purchases: $520,002,561 $46,523,060 $74,846,168
Sales: 530,473,357 50,448,199 67,737,566
Money Market held only short-term investments.
The cost of investments owned at March 31, 1997 was substantially the same
for federal income tax and financial reporting purposes for each Portfolio. The
following table presents the components of net unrealized appreciation
(depreciation) as of March 31, 1997 and the net realized capital loss
carryforwards as of September 30, 1996 with expiration dates:
Unrealized appreciation - $48,552,741 $457,381 $13,696,323
Unrealized depreciation - 18,064,369 953,544 6,992,129
Capital loss carryforward 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. All
transactions are executed at independently derived prices.
Note D-ubsequent 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 .024 .048 .050
Distributions from
Net investment income (.024) (.048) (.050)
Net asset value, ending $1.00 $1.00 $1.00
Total return 2.38% 4.88% 5.13%
Ratios to average net assets:
Net investment income 4.74%(a) 4.77% 5.03%
Total expenses .89%(a) .89% .89%
Net expenses .87%(a) .87% .87%
Expenses reimbursed .11%(a) .21% .18%
Net assets, ending (in thousands) $170,464 $166,516 $153,996
Number of shares outstanding,
ending (in thousands) 170,512 166,569 154,044
Net asset value, beginning $1.00 $1.00 $1.00
Income from investment operations
Net investment income .031 .025 .037
Distributions from
Net investment income (.031) (.025) (.037)
Net asset value, ending $1.00 $1.00 $1.00
Total return 3.13% 2.56% 3.79%
Ratios to average net assets:
Net investment income 3.07% 2.54% 3.74%
Total expenses -- -- --
Net expenses .87% .87% .87%
Expenses reimbursed .18% .20% .16%
Net assets, ending (in thousands) $143,779 $144,985 $171,340
Number of shares outstanding,
ending (in thousands) 143,826 145,031 171,407
Class A Shares
Net asset value, beginning $31.35 $32.81 $28.77
Income from investment operations
Net investment income .41 .78 .87
Net realized and unrealized gain (loss) .24 2.28 4.25
Total from investment operations .65 3.06 5.12
Distributions from
Net investment income (.40) (.77) (.87)
Net realized gain (2.10) (3.75) (.21)
Total distributions (2.50) (4.52) (1.08)
Total increase (decrease)
in net asset value (1.85) (1.46) 4.04
Net asset value, ending $29.50 $31.35 $32.81
Total return* 1.88% 10.27% 18.21%
Ratios to average net assets:
Net investment income 2.61%(a) 2.58% 2.89%
Total expenses 1.18%(a) 1.28% 1.28%
Net expenses 1.16%(a) 1.26% 1.26%
Expenses reimbursed - .01% .02%
Portfolio turnover 89% 111% 114%
Average commission rate paid $.0513 $.0489 -
Net assets, ending (in thousands) $581,118 $594,482 $560,981
Number of shares outstanding,
ending (in thousands) 19,702 18,964 17,099
Class A Shares
Net asset value, beginning $30.85 $29.35 $28.42
Income from investment operations
Net investment income .93 .95 1.07
Net realized and unrealized gain (loss)(1.83) 1.91 1.82
Total from investment operations (.90) 2.86 2.89
Distributions from
Net investment income (.95) (.95) (1.95)
Net realized gain (.23) (.41) (.01)
Total distributions (1.18) (1.36) (1.96)
Total increase (decrease)
in net asset value (2.08) 1.50 .93
Net asset value, ending $28.77 $30.85 $29.35
Total return* (2.95%) 9.98% 10.71%
Ratios to average net assets:
Net investment income 3.14% 3.25% 3.90%
Total expenses -- -- --
Net expenses 1.24% 1.25% 1.28%
Expenses reimbursed -- -- --
Portfolio turnover 34% 33% 14%
Average commission rate paid -
Net assets, ending (in thousands) $512,027 $536,170 $419,514
Number of shares outstanding,
ending (in thousands) 17,800 17,378 14,292
March 31, September 30,
Class C Shares 1997 1996 1995 1994**
Net asset value, beginning $31.05 $32.60 $28.65 $30.43
Income from investment operations
Net investment income .23 .46 .54 .51
Net realized and unrealized
gain (loss) .23 2.17 4.20 (1.66)
Total from investment operations .46 2.63 4.74 (1.15)
Distributions from
Net investment income (.21) (.43) (.58) (.63)
Net realized gain (2.10) (3.75) (.21) --
Total distributions (2.31) (4.18) (.79) (.63)
Total increase (decrease)
in net asset value (1.85) (1.55) 3.95 (1.78)
Net asset value, ending $29.20 $31.05 $32.60 $28.65
Total return* 1.29% 8.85% 16.85% (3.30%)
Ratios to average net assets:
Net investment income 1.42%(a) 1.34% 1.61% 1.83%(a)
Total expenses 2.38%(a) 2.52% 2.51% --
Net expenses 2.36%(a) 2.50% 2.50% 2.47%(a)
Expenses reimbursed .01%(a) .14% .42% 1.46%(a)
Portfolio turnover 89% 111% 114% 34%
Average commission rate paid $.0513 $.0489 - -
Net assets, ending (in thousands) $7,347 $6,715 $4,065 $1,893
Number of shares outstanding,
ending (in thousands) 252 216 125 66
Bond Portfolio
Class A Shares Period ended Period ended
March 31 September 30,
1997 1996 1995
Net asset value, beginning $16.06 $16.34 $15.49
Income from investment operations
Net investment income .48 .92 .96
Net realized and unrealized gain (loss) (.11) (.29) .91
Total from investment operations .37 .63 1.87
Distributions from
Net investment income (.48) (.91) (.93)
Net realized gain - - (.06)
Tax return of capital - - (.03)
Total distributions (.48) (.91) (1.02)
Total increase (decrease)
in net asset value (.11) (.28) .85
Net asset value, ending $15.95 $16.06 $16.34
Total return* 2.28% 3.96% 12.57%
Ratios to average net assets:
Net investment income 5.86%(a) 5.60% 6.04%
Total expenses 1.28%(a) 1.29% 1.24%
Net expenses 1.24%(a) 1.26% 1.22%
Portfolio turnover 22% 29%
Net assets, ending (in thousands) $59,450 $62,259 $62,929
Number of shares outstanding,
ending (in thousands) 3,728 3,876 3,850
Years Ended
September 30,
Class A Shares 1994 1993 1992
Net asset value, beginning $17.77 $17.05 $16.48
Income from investment operations
Net investment income .94 1.08 1.15
Net realized and unrealized gain (loss)(1.81) .85 .78
Total from investment operations (.87) 1.93 1.93
Distributions from
Net investment income (.94) (1.08) (1.15)
Net realized gain (.47) (.13) (.21)
Tax return of capital --
Total distributions (1.41) (1.21) (1.36)
Total increase (decrease) in net
asset value (2.28) .72 .57
Net asset value, ending $15.49 $17.77 $17.05
Total return* (5.18%) 11.89% 12.29%
Ratios to average net assets:
Net investment income 5.64% 6.33% 6.90%
Total expenses -- -- --
Net expenses 1.10% .79% .75%
Expenses reimbursed .20% .24%
Portfolio turnover 19% 28% 29%
Net assets, ending (in thousands) $61,573 $67,134 $50,572
Number of shares outstanding,
ending (in thousands) 3,976 3,778 2,965
Bond Porfolio
Periods ended
October September 30,
29,
Class C Shares 1996 1996 1995 1994**
Net asset value, beginning $15.90 $16.20 $15.43 $16.71
Income from investment operations
Net investment income .06 .72 .80 .45
Net realized and unrealized
gain (loss) .21 (.31) .87 (1.23)
Total from investment operation .27 .41 1.67 (.78)
Distributions from
Net investment income (.05) (.71) (.81) (.50)
Net realized gain - - (.06) __
Tax return of capital - - (.03) --
Total distributions (.05) (.71) (.90) (.50)
Total increase (decrease)
in net asset value .22 (.30) .77 (1.28)
Net asset value, ending $16.12 $15.90 $16.20 $15.43
Total return* 1.73% 2.58% 11.21% (4.13%)
Ratios to average net assets:
Net investment income 4.84%(a) 4.18% 4.60% 4.63%(a)
Total expenses 2.56%(a) 2.53% 2.52% --
Net expenses 2.51%(a) 2.50% 2.50% 2.41%(a)
Expenses reimbursed .96%(a) .75% 2.14% 9.60%(a)
Portfolio turnover 22% 29% 19%
Net assets, ending (in thousands) $1,427 $1,441 $910 $315
Number of shares outstanding,
ending (in thousands) 89 91 56 20
(a) Annualized
* Total return is not annualized and does not reflect deduction of Class A
front-end sales charge.
Equity Portfolio Periods Ended
March 31, September 30,
Class A Shares 1997 1996 1995
Net asset value, beginning $22.54 $21.12 $20.13
Income from investment operations
Net investment income .02 .03 .06
Net realized and unrealized gain (loss) 1.23 3.26 2.22
Total from investment operations 1.25 3.29 2.28
Distributions from
Net investment income - (.06) (.04)
Net realized gain (1.50) (1.81) (1.25)
Total distributions (1.50) (1.87) (1.29)
Total increase (decrease)
in net asset value (.25) 1.42 .99
Net asset value, ending $22.29 $22.54 $21.12
Total return* 5.42% 16.62% 12.43%
Ratios to average net assets:
Net investment income .19%(a) .15% .32%
Total expenses 1.22%(a) 1.29% 1.38%
Net expenses 1.20%(a) 1.27% 1.36%
Portfolio turnover 63% 118% 35%
Average commission rate paid $.0583 $.0556 -
Net assets, ending (in thousands) $112,327 $101,344 $90,951
Number of shares outstanding,
ending (in thousands) 5,040 4,496 4,307
Equity Portfolio
Years Ended
September 30,
Class A Shares 1994 1993 1992
Net asset value, beginning $21.43 $20.03 $18.89
Income from investment operations
Net investment income .13 .21 .17
Net realized and unrealized gain (loss)(1.04) 1.36 1.20
Total from investment operations (.91) 1.57 1.37
Distributions from
Net investment income (.28) (.17) (.23)
Net realized gain (.11) -- --
Total distributions (.39) (.17) (.23)
Total increase (decrease)
in net asset value (1.30) 1.40 1.14
Net asset value, ending $20.13 $21.43 $20.03
Total return* (4.33%) 7.82% 7.36%
Ratios to average net assets:
Net investment income .65% 1.06% 1.02%
Total expenses -- -- --
Net expenses 1.27% 1.13% 1.17%
Expenses reimbursed -- --
Portfolio turnover 94% 43% 24%
Average commission rate paid - - -
Net assets, ending (in thousands) $92,970 $85,042 $64,629
Number of shares outstanding,
ending (in thousands) 4,620 3,968 3,226
Equity Portfolio
March 31, September 30,
Class C Shares 1997 1996 1995 1994**
Net asset value, beginning $21.71 $20.66 $19.98 $22.12
Income from investment operations.
Net investment income .02 (.16) (.03) (.06)
Net realized and
unrealized gain (loss) 1.04 3.04 2.05 (2.08)
Total from investment operations 1.06 2.88 2.02 (2.14)
Distributions from
Net investment income - (.02) (.09) --
Net realized gain (1.50) (1.81) (1.25) --
Total distributions (1.50) (1.83) (1.34) --
Total increase (decrease)
in net asset value (.44) 1.05 .68 (2.14)
Net asset value, ending $21.27 $21.71 $20.66 $19.98
Total return* 4.73% 14.85% 11.16% (9.14%)
Ratios to average net assets:
Net investment income (loss) (1.02%)(a) (1.42%) (.84%) (1.06%)(a)
Total expenses 2.44%(a) 2.86% 2.51% --
Net expenses 2.42%(a) 2.85% 2.50% 2.75%(a)
Expenses reimbursed - - 1.07% 4.60%(a)
Portfolio turnover 63% 118% 35% 94%
Average commission rate paid $.0583 $.0556 - -
Net assets, ending (in thousands) $4,256 $2,996 $1,802 $670
Number of shares outstanding,
ending (in thousands) 200 138 87 34
(a) Annualized
* Total return is not annualized for periods of less than one year and does
not reflect deduction of Class A front-end sales charge.
Effective September 30, 1995, this ratio reflects total expenses before
reduction for fees paid indirectly: such reductions are included in the ratio
of net expenses.
** From March 1, 1994, inception
Real Goods: A Sustainable Future Begins at Home
Want to change the world? Start by changing your light bulbs.
For John Schaeffer, president and founder of Real Goods Trading
Corporation, building a sustainable future begins at home. Schaeffer created
Real Goods in 1978 to provide alternative energy products to his local
California neighbors. The company has since grown to become the world's largest
retailer of renewable energy products, providing consumers with more than 3,500
different products including photovoltaic panels, efficient lighting products,
and water conservation devices.
For nearly two decades, Real Goods has made environmental innovation and
education two of its top priorities, publishing the Solar Living Sourcebook and
garnering a host of awards.
In 1996, for example, Real Goods:
opened a 12-acre Solar Living Center, a workable model of sustainable
building, agriculture, and renewable energy practices that is built entirely of
recycled and reused materials;
won the Rodale Award for Environmental Excellence;
became the first company in history to be approved by the SEC to publicly
trade its stock on the Internet.
In 1996 CSIF invested $475,000 in Real Goods stock to support the company's
strong vision of sustainability and business savvy. According to Wayne Silby,
Chair of the Special Equities Committee, "We see lots of companies with good
ideas and a vision. But the people who can take their vision into the
marketplace and get a good response are unusual and valuable. These are the
companies whose ideas will help define and shape our lives in the 21st century."
As of March 31, 1997, Real Goods represented .064% of net assets in CSIF
Managed Growth Portfolio.
Connections:
Real Goods Trading Corporation, 555 Leslie Street, Ukiah, CA 95482
Phone: 707-468-9292 or 800-762-7325
Web site: http://www.realgoods.com
Environmental Enterprises Assistance Fund: Breaking New Ground for
Green Entrepreneurs
For the first time in recorded history, many residents of San Pedro Sula,
Honduras, can now wake up and drink fresh water. Water is the liquid of life,
but for the people of San Pedro Sula and millions of others in developing
nations, fresh water is often in dramatically short supply.
Thanks to funds provided by the Environmental Enterprises Assistance Fund
(EEAF), a nonprofit organization operating as a venture capital fund, residents
of San Pedro Sula can now enjoy the health benefits of safe drinking water. In
1996, EEAF received $125,000 from CSIF's High Social Impact Investment program.
These funds helped support EcoVerde, an EEAF-assisted project that is the only
privately owned water and sewage utility in Honduras. Apart from safe drinking
water, the EcoVerde project has also enabled San Pedro Sula to treat its sewage
to international standards -a rarity in Central America. EEAF has since used
CSIF's initial investment to help raise $10 million in environmental and
community development projects in Central America.
According to EEAF, CSIF's investment enabled the organization to open the
door to other environmental entrepreneurs in the region. "Calvert has the vision
to invest in areas where the effect of the investment is felt immediately on a
community level," said J.D. Doliner of EEAF.
Calvert was attracted to EEAF's focus on green investments in areas often
neglected by traditional sources of capital. "EEAF is making significant,
successful loans that give people the resources they needed to build a more
sustainable future," said CSIF Trustee Terry Mollner, chair of CSIF's High
Social Impact Investment Committee.
EEAF focuses its investments in six areas: renewable energy, energy
efficiency, sustainable agriculture and forestry, recycling, eco-tourism, and
pollution control. With 22 projects stretching from Indonesia to Poland to
Honduras and $17million in assets under management, EEAF is helping create a
greener future for communities like San Pedro Sula across the globe.
Connections:
Environmental Enterprises Assistance Fund
1901 N. Moore Street, Suite 1004, Arlington, VA 22209
Phone: 703-522-5928
Web site: http://www.ji.org/jinews/eeaf.htm