CALVERT STRATEGIC GROWTH FUND
Dear Shareholder:
This report for the Calvert Strategic Growth Fund covers the six months
ended September 30, 1996.
The economy continued to expand at a modest pace into 1995, but appeared to
gain momentum in the second quarter of 1996. This heightened fears of inflation
and increased the likelihood of a rise in interest rates, which brought about a
steep decline in stock prices.
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. This served to calm the financial markets in the final months of this
reporting period, and stock prices rebounded.
Stocks closed the 12-month period with strongly 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.
Market Assessment
The Strategic Growth Fund's investment objective is maximum long-term
growth. In strong markets, we look to invest in companies we believe will
experience exceptionally strong earnings growth. When our outlook for the market
turns decidedly negative, the Fund has the flexibility to take a defensive
position, moving assets into cash and/or selling stock short. The Fund's manager
utilizes a proprietary method of assessing stock market risk called the Five
Market Principles.
According to the Five Market Principles model, the stock market had a
Moderately High level of risk throughout this six-month period. Four of the five
market indicators fluctuated between an Average and Moderately High level of
risk. The Fundamental Value indicator remained fixed at the High Risk level,
meaning that, in general, stock valuations are very high when viewed from a
historical perspective.
Fund Performance and Strategy
The Calvert Strategic Growth Fund generated strong returns, well ahead of
its benchmark indexes for both the six- and 12-month periods ended September 30,
1996.
At the close of this reporting period, roughly 60% of assets were invested
in equity securities. Exceptional returns generated by Cascade Communications,
Ascend Communications, Corporate Express, Gucci Group and PairGain Technologies
boosted the Fund's return.
Successful short selling also enhanced performance. The portfolio had an
average short position of 2% of assets, concentrated in the medical and
technology market sectors. (A short sale is a bet the value of a stock will
decline. In a short sale, the investor sells borrowed stock, hoping he or she
will be able to buy the shares back at a lower price. The repurchased shares are
returned to the lender and the investor keeps the difference as profit. Of
course, the stock price may not decline, in which case the investor would have
to buy back the shares at a higher price and incur a loss.) We also utilized put
options on the Standard & Poor's 500 Stock Index to limit the effect of a
potential slide in stock prices on the Fund's net asset value. (The buyer of a
put has the option to sell securities at a predetermined
price.)
As a further cushion against a possible market decline, we maintained a
significant cash position, about 35% at period end, and held roughly 2% of
assets in U.S. Treasury Notes.
Outlook
As we progress into the fourth quarter of 1996, the Five Market Principles
continue to indicate a Moderately High level of risk. In light of that
assessment, we plan to maintain our strategy of investing in stocks of companies
we believe have exceptional potential for growth while also employing defensive
strategies.
There are two factors, however, that should have a positive impact on the
market over the next several months. First, year-end seasonal strength typically
buoys stock prices from Thanksgiving through early January. Second, stocks have
historically done well in the fourth quarter of Presidential election years. In
order to take advantage of this expected year-end strength, we may increase the
percentage of Fund assets committed to equity securities. We appreciate your
continued support of the Calvert Strategic Growth Fund.
Sincerely,
Cedd Moses Clifton S. Sorrell
Portfolio Manager President
October 17, 1996
Portfolio Statistics
Ten Largest Stock Holdings
as of September 30, 1996
% of Net Assets
- ---------------------------------------------------------------------------
Vantive Corp. 4.5%
Cascade Communications Corp. 4.3%
Citrix Systems, Inc. 3.2%
Gucci Group, N.V. 3.1%
Corporate Express, Inc. 3.1%
Pairgain Technologies, Inc. 3.0%
Rational Software Corp. 2.4%
McAfee Associates, Inc. 2.1%
DSPCommunications, Inc. 2.1%
Uniphase Corp. 1.9%
- -------------------------------------------------------------------------------
Total 29.7%
==========================================================================
Average Annual Total Returns
for periods ended September 30, 1996
Class A Shares
One Year 19.47%
Since Inception (5/94) 14.33%
Class C Shares
One Year 24.46%
Since Inception (5/94) 15.76%
Equity Securities - 59.1% Shares Value
- --------------------------------------------------------------------------------
Computer - Networks - 1.6%
Ascend Communications, Inc. * 42,400 $2,803,700
- --------------------------------------------------------------------------------
2,803,700
Computer - Services - 2.9%
Bisys Group, Inc. * 33,900 1,389,900
Cambridge Technology Partners * 73,900 2,235,475
Harbinger Corp. * 48,200 1,205,000
- ---------------------------------------------------------------------------
4,830,375
Electronics - Semiconductors - 6.1%
DSP Communications, Inc. * 62,200 3,475,425
Sanmima Corp. * 21,000 845,250
Uniphase Corp. * 78,000 3,295,500
Vitesse Semiconductor Corp. * 47,000 1,815,375
Zoran Corp. * 49,000 833,000
- ------------------------------------------------------------------------------
10,264,550
Financial Services - 1.0%
Cityscape Financial Corp. * 61,400 1,627,100
- -------------------------------------------------------------------------------
1,627,100
Medical - Information Technology - 3.3%
Access Health, Inc. * 42,700 2,401,875
Enterprise Systems, Inc. * 19,000 489,250
HCIA, Inc. * 43,600 2,616,000
- --------------------------------------------------------------------------------
5,507,125
Oil & Gas - Equipment - 0.4%
Smith International, Inc. * 21,300 748,162
- ----------------------------------------------------------------------------
748,162
Oil & Gas - Production/Pipeline - 0.0%
Nova Group, Inc. * 1,950 64,350
- --------------------------------------------------------------------------------
64,350
Pharmaceutical - 3.2%
Dura Pharmaceuticals, Inc. * 65,200 2,404,250
Jones Medical Industries, Inc. 62,725 3,042,162
- -------------------------------------------------------------------------------
5,446,412
Restaurants - 0.3%
Planet Hollywood International, Inc. * 15,300 428,400
Rainforest Cafe, Inc. * 3,000 93,000
- -----------------------------------------------------------------------------
521,400
Equity Securities (Cont'd) Shares Value
Retail - 8.1%
Corporate Express, Inc. * 133,000 $5,170,375
Gadzooks, Inc. * 66,450 2,309,138
Gucci Group, N.V. 73,100 5,299,750
Wet Seal, Inc., Class A * 23,300 838,800
- ----------------------------------------------------------------------------
13,618,063
- --------------------------------------------------------------------------------
Retail/Wholesale - Computers - 0.5%
Tech Data Corp. * 31,700 883,638
- --------------------------------------------------------------------------------
883,638
Software - Applications - 10.0%
Aspect Development, Inc. * 12,600 428,400
Clarify, Inc.* 39,800 2,467,600
Objective Systems Integrators, Inc. * 32,300 666,188
Parametric Technology Corp. * 17,500 864,062
Pegasystems, Inc. * 13,000 338,000
Remedy Corp. * 25,800 2,064,000
Siebel Systems, Inc. * 59,800 2,489,175
Vantive Corp. * 116,200 7,523,950
Visio Corp. * 3,000 136,500
- ------------------------------------------------------------------------------
16,977,875
Software - Database/Development Tools - 5.4%
Applix, Inc. * 62,500 1,640,625
Cognos, Inc. * 65,750 2,145,094
Pure Atria Corp. * 29,900 1,128,725
Rational Software Corp. * 118,000 4,026,750
SQA, Inc. * 5,000 135,000
- --------------------------------------------------------------------------------
9,076,194
Software - Education/Entertainment - 1.6%
CBT Group Publishing Ltd., ADR * 55,800 2,622,600
Crystal Dynamics, Inc., Series D * 13,334 62,403
- ---------------------------------------------------------
2,685,003
Software - Systems - 6.3%
Citrix Systems, Inc. * 104,900 5,376,125
Legato Systems, Inc. * 33,000 1,567,500
McAfee Associates, Inc. * 51,950 3,584,550
Novadigm, Inc. * 10,000 60,000
Peerless Systems Corp. * 7,500 86,250
- --------------------------------------------------------------------------------
10,674,425
Telecommunications - 8.4%
Cascade Communications Corp. * 90,200 7,351,300
Pacific Gateway Exchange, Inc. * 10,800 318,600
Pairgain Technologies, Inc. * 64,600 5,046,875
Equity Securities (Cont'd) Shares Value
- --------------------------------------------------------------------------
Telecommunications (Cont'd)
Sawtek, Inc. * 21,800 $566,800
Verilink Corp. * 36,100 884,450
- --------------------------------------------------------------------------
14,168,025
- --------------------------------------------------------------------------------
Total Equity Securities (Cost $70,357,593) 99,896,397
- --------------------------------------------------------------------------------
Principal
Repurchase Agreements - 34.6% Amount
- ---------------------------------------------------------------------------
Donaldson, Lufkin, Jenrette: 5.70%,
dated 9/30/96, due 10/1/96 $58,500,000 58,500,000
- --------------------------------------------------------------------------------
(Collateral: $20,395,658, FNMA, 7.72%, 12/16/96)
(Collateral: $21,107,583, FNMA, 7.94%, 9/13/06)
(Collateral: $14,441,831, Ref Corp Strip, Zero Coupon, 7/15/02)
(Collateral: $3,836,735, Ref Corp Strip, Zero Coupon, 10/15/22)
Total Repurchase Agreements (Cost $58,500,000) 58,500,000
- -----------------------------------------------------------------------------
U.S. Treasury - 2.3%
- --------------------------------------------------------------------------------
U.S. Treasury Notes, 5.00%, 2/15/99 4,000,000 3,896,120
- --------------------------------------------------------------------------------
Total U.S.Treasury (Cost $3,932,779) 3,896,120
Options Purchased - 0.8% Contracts
- ----------------------------------------------------------------------------
S&P 500 Index Put Options
Expiration 11/22/96, Strike Price 675 670 611,375
S&P 500 Index Put Options
Expiration 11/22/96, Strike Price 680 695 729,750
- ----------------------------------------------------------------------------
Total Options Purchased (Premium $1,583,470) 1,341,125
Principal
Community Loan Notes - 1.1% Amount
- --------------------------------------------------------------------------------
Cascadia Revolving Loan Fund, 4.00%, 4/30/99 75,000 72,453
Dorchester Bay Economic Development Corp., 4.00%,
7/15/97 50,000 47,605
Illinois Facilities Fund, 4.00%, 9/30/99 250,000 249,950
Low Income Housing Fund, 4.00%, 1/12/99 350,000 343,231
Minnesota Non Profits Assistance Fund, 3.00%,
4/30/01 200,000 192,272
Northeast South Dakota Energy Conservation Corp.,
4.00%, 4/30/99 75,000 72,453
Ohio Community Development Finance Fund,
5.00%, 5/31/99 500,000 485,360
Rural Community Assistance Fund, 4.00%, 6/28/99 100,000 95,210
Unitarian Universalist Affordable Housing Corp.,
4.00%, 6/28/99 80,000 76,168
Principal
Community Loan Notes (Cont'd) Amount Value
Washington Area Community Investment Fund,
4.00%, 6/28/99 $100,000 $95,210
Working Capital, 4.00%, 9/30/97 50,000 49,181
- --------------------------------------------------------------------------------
Total Community Loan Notes (Cost $1,830,000) 1,779,093
TOTAL INVESTMENTS (Cost $136,203,842) - 97.9% 165,412,735
Securities Sold Short - (2.5%) (4,293,206)
Options Written - (0.2%) (281,750)
Other assets and liabilities, net - 4.8% 8,063,276
- --------------------------------------------------------------------------------
Net Assets - 100% $168,901,055
===============================================================================
SCHEDULE OF SECURITIES SOLD SHORT
SEPTEMBER 30, 1996
Equity Securities Shares
- --------------------------------------------------------------------------
America Online, Inc. 27,500 $979,688
Graham Field Health Products, Inc. 1,600 11,000
Lone Star Steakhouse & Saloon 29,900 910,081
McDonalds Corp. 50,500 2,392,437
- --------------------------------------------------------------------------------
TOTAL EQUITY SECURITIES SOLD SHORT
(Proceeds $4,157,473) $4,293,206
============================================================================
SCHEDULE OF OPTIONS WRITTEN
SEPTEMBER 30, 1996
Options Written Contracts
- --------------------------------------------------------------------------------
Pairgain Technologies, Inc., Call Options
Expiration 10/19/96, Strike Price 70 230 $281,750
- --------------------------------------------------------------------------------
TOTAL OPTIONS WRITTEN
(Premium $150,868) $281,750
============================================================================
Assets Value
Investments in securities, at value $165,412,735
Cash 655,708
Receivable for securities sold 955,800
Receivable for shares sold 401,027
Interest and dividends receivable 63,621
Deposits with brokers 7,787,020
Other assets 23,852
- ----------------------------------------------------------------------------
Total assets 175,299,763
- -------------------------------------------------------------------------------
Liabilities
- -------------------------------------------------------------------------------
Payable for securities purchased 1,284,386
Payable for shares redeemed 193,616
Securities sold short, at value (proceeds $4,157,473) 4,293,206
Options written, at value (premium $150,868) 281,750
Payable to Calvert Asset Management Co., Inc. 208,638
Payable to Calvert Administrative Services Co. 26,842
Payable to Calvert Shareholder Services, Inc. 27,407
Payable to Calvert Distributors, Inc. 50,168
Accrued expenses and other liabilities 32,695
- -----------------------------------------------------------------------------
Total liabilities 6,398,708
Net assets $168,901,055
Net Assets Consist of:
- -----------------------------------------------------------------------------
Paid-in capital applicable to the following shares of beneficial interest;
unlimited number of no par shares authorized:
Class A: 6,820,291 shares outstanding $111,315,794
Class C: 1,369,502 shares outstanding 22,537,670
Undistributed net investment income (loss) (736,065)
Accumulated net realized gain (loss) on investments 6,841,378
Net unrealized appreciation (depreciation) on investments 28,942,278
- --------------------------------------------------------------------------------
Net assets $168,901,055
=============================================================================
Net Asset Value per Share
- ----------------------------------------------------------------------
Class A (based on net assets of $140,957,559) $20.67
============================================================================
Class C (based on net assets of $27,943,496) $20.40
Net Investment Income
- ---------------------------------------------------------------------------
Investment Income
Interest income $1,161,401
Dividend income 42,123
- -------------------------------------------------------------------------------
Total investment income 1,203,524
Expenses
Investment advisory fee 1,223,046
Transfer agency fees and expenses 184,772
Distribution Plan expenses:
Class A 168,842
Class C 136,696
Trustees' fees and expenses 8,320
Administrative fees 162,413
Custodian fees 24,939
Registration fees 22,457
Reports to shareholders 40,217
Professional fees 24,119
Miscellaneous expenses 54,446
Reimbursement from Advisor (85,739)
- --------------------------------------------------------------------------------
Total expenses 1,964,528
Fees paid indirectly (24,939)
- --------------------------------------------------------------------------------
Net expenses 1,939,589
- -------------------------------------------------------------------------------
Net Investment Income (Loss) (736,065)
- --------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
on Investments
- ----------------------------------------------------------------------
Net realized gain (loss) on:
Securities (35,756,054)
Options written 36,617,448
Securities sold short 223,141
- -------------------------------------------------------------------------
1,084,535
Change in unrealized appreciation or depreciation 15,508,932
- --------------------------------------------------------------------------
Net Realized and Unrealized Gain
(Loss) on Investments 16,593,467
- --------------------------------------------------------------------------------
Increase (Decrease) in Net Assets
Resulting From Operations $15,857,402
========================================================================
Increase (Decrease) in Net Assets
- ----------------------------------------------------------------------------
Operations
Net investment income (loss) $(736,065) $1,151,276
Net realized gain (loss) 1,084,535 6,911,057
Change in unrealized appreciation or
depreciation 15,508,932 9,845,857
- --------------------------------------------------------------------------------
Increase (Decrease) in Net Assets
Resulting From Operations 15,857,402 17,908,190
- -----------------------------------------------------------------------------
Distributions to shareholders from
Net investment income:
Class A Shares - (1,548,699)
Class C Shares - (152,946)
Net realized gain:
Class A Shares - (1,624,507)
Class C Shares - (328,896)
- --------------------------------------------------------------------------------
Total distributions - (3,655,048)
Capital share transactions :
Shares sold:
Class A Shares 27,500,681 64,185,609
Class C Shares 5,292,415 15,176,622
Reinvestment of distributions:
Class A Shares - 2,842,563
Class C Shares - 465,985
Shares redeemed:
Class A Shares (25,456,523) (60,303,058)
Class C Shares (5,388,638) (12,307,161)
- --------------------------------------------------------------------------
Total capital share transactions 1,947,935 10,060,560
- ----------------------------------------------------------------------------
Total Increase (Decrease) in Net Assets 17,805,337 24,313,702
Net Assets
- ----------------------------------------------------------------------------
Beginning of period 151,095,718 126,782,016
- ---------------------------------------------------------------------------
End of period (including undistributed net investment income (loss) of
$(736,065) and $0, respectively) . $168,901,055 $151,095,718
==============================================================================
Capital Share Activity
- ---------------------------------------------------------------------------
Shares sold:
Class AShares 1,389,027 3,803,233
Class CShares 267,955 905,375
Reinvestment of distributions:
Class A Shares - 164,542
Class C Shares - 27,150
Shares redeemed:
Class A Shares (1,308,726) (3,537,947)
Class C Shares (278,215) (725,836)
- --------------------------------------------------------------------------------
Total capital share activity 70,041 636,517
==============================================================================
Notes to Financial Statements
Note A-Significant Accounting Policies
General: The Calvert Strategic Growth Fund (the "Fund"), a series of The
Calvert Fund, is registered under the Investment Company Act of 1940 as a
non-diversified, open-end management investment company. The operations of each
series are accounted for separately. The Fund offers Class A and Class C shares
of beneficial interest. Class A shares are sold with a maximum front-end sales
charge of 4.75%. 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 unavailable are valued at the
most recent bid price or based on a yield equivalent obtained from the
securities' market maker. 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.
Securities Sold Short: The Fund may sell securities that it does not own in
anticipation of a decline in their market price. Gains or losses represent the
difference between the sale proceeds and the price of the security.
Deposits with Brokers: The Fund maintains liquid assets, including
equivalent securities, sufficient to cover, on a daily basis, the current values
of written options and securities sold short.
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.
Interest income, accretion of discount and amortization of premium are recorded
on an accrual basis. Dividends declared on securities sold short are reported as
an expense.
Distributions to Shareholders: Distributions to shareholders are recorded
by the Fund on ex-dividend date. Dividends from net investment income and
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.
Expense Offset Arrangements: The Fund has an arrangement with its custodian
bank whereby the custodian's fees are paid indirectly by credits earned on the
Fund'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 a monthly fee based on an annual rate of
1.5% of the Fund's average daily net assets. Effective May, 1995, the Fund began
paying a monthly performance fee of plus or minus .15%, on an annual basis, of
average daily net assets of the performance period depending on the Fund's
performance compared to the Russell 2000 Index.
The Advisor reimburses the Fund for its operating expenses (excluding
brokerage fees, taxes, interest, Distribution Plan expenses and extraordinary
items) exceeding the following annual rates of average daily net assets: 2.5% on
the first $30 million, 2.0% on the next $70 million and 1.5% on the excess of
$100 million. Expenses reimbursed by the Advisor before December 31, 1994 may,
to the extent permitted by law, be repaid by the Fund from January 1, 1995
through December 31, 1996. All expense reimbursements made from January 1, 1995
through December 31, 1996 may be repaid from January 1, 1997 through December
31, 1998. Expense repayments are subject to the above stated expense
limitations.
Calvert Administrative Services Company, an affiliate of the Advisor,
provides administrative services to the Fund for an annual fee, payable monthly,
of .20% of the average daily net assets of the Fund.
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 Fund 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,
respectively.
The Distributor received $103,692 as its portion of commissions charged on
sales of the Fund's shares.
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 $20,250 plus up to $1,200 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. Trustees fees are allocated to each of the
funds served.
Note C-Investment Activity
During the period, purchases and sales of investments, other than
short-term and U.S. government securities, were $70,759,498 and $100,457,658,
respectively. U.S. government security purchases were $4,925,397 and sales were
$9,790,000.
The cost of investments owned at September 30, 1996 was substantially the
same for federal income tax and financial reporting purposes. Net unrealized
appreciation aggregated $29,208,893, of which $31,240,172 related to appreciated
securities and $2,031,279 related to depreciated securities.
The following summarizes the Fund's transactions in written call and put
options during the period:
Options Contracts Premiums
- -------------------------------------------------------------------------------
Outstanding, beginning of period 28,000 $55,970,132
Written 6,144 3,800,012
Exercised (831) (555,187)
Closed (17,895) (38,936,261)
Expired (15,188) (20,127,828)
================================================================================
Outstanding, ending of period 230 $150,868
=============================================================================
Securities having an aggregate market value of $5,046,875 were identified
to cover open options written at September 30, 1996.
Class A Shares
- --------------------------------------------------------------------------------
Net asset value, beginning $18.64 $16.96 $15.00
================================================================================
Income from investment operations
Net investment income (loss) (.08) .13 .20
Net realized and unrealized
gain (loss) 2.11 1.96 2.21
- --------------------------------------------------------------------------------
Total from investment operations 2.03 2.09 2.41
- -----------------------------------------------------------------------------
Distributions from
Net investment income - (.20) (.04)
Net realized gain - (.21) (.41)
- --------------------------------------------------------------------------------
Total distributions - (.41) (.45)
- -------------------------------------------------------------------------------
Total increase (decrease) in net
asset value 2.03 1.68 1.96
- -----------------------------------------------------------------------------
Net asset value, ending $20.67 $18.64 $16.96
==============================================================================
Total return* 10.89% 12.56% 16.08%
================================================================================
Ratios to average net assets:
Net investment income (loss) (.77%)(a) .90% 1.47%(a)
Total expenses 2.28%(a) 2.32% -
================================================================================
Net expenses 2.25%(a) 2.29% 2.55%(a)
Expenses reimbursed .13%(a) .14% .31%(a)
Portfolio turnover 60% 402% 480%
Average commission rate paid $.09 - -
Net assets, ending (in thousands) $140,958 $125,606 $107,004
Number of shares outstanding,
ending (in thousands) 6,820 6,740 6,310
================================================================================
Class C Shares
- ---------------------------------------------------------------------------
Net asset value, beginning $18.47 $16.86 $15.00
================================================================================
Income from investment operations
Net investment income (loss) (.16) (.02) .12
Net realized and unrealized
gain (loss) 2.09 1.94 2.18
- --------------------------------------------------------------------------
Total from investment operations 1.93 1.92 2.30
- --------------------------------------------------------------------------
Distributions from
Net investment income - (.10) (.03)
Net realized gain - (.21) (.41)
- ------------------------------------------------------------------------------
Total distributions - (.31) (.44)
- --------------------------------------------------------------------------------
Total increase (decrease) in net
asset value 1.93 1.61 1.86
- --------------------------------------------------------------------------------
Net asset value, ending $20.40 $18.47 $16.86
==============================================================================
Total return* 10.45% 11.57% 15.32%
================================================================================
Ratios to average net assets:
Net investment income (loss) (1.60%)(a) .02% .83%(a)
Total expenses 3.11%(a) 3.18% --
================================================================================
Net expenses 3.08%(a) 3.16% 3.45%(a)
Expenses reimbursed - - .20%(a)
Portfolio turnover 60% 402% 480%
Average commission rate paid $.09 - -
Net assets, ending (in thousands) $27,943 $25,490 $19,778
Number of shares outstanding,
ending (in thousands) 1,370 1,380 1,173
===========================================================================
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
