Dear Shareholders:
The financial markets have been exceptionally volatile over the past
few weeks. Events began to unfold in mid August, when the Asian
currency crisis bled over to the Far East markets causing those
markets to stumble, setting off a domino-effect that spread to all
world markets. Just as market observers were predicting a repeat of
the October 19, 1987 slide, stocks rallied back.
At Calvert Group, we see this recent roller coaster ride as an
example of the ups and downs inevitable in stock market investing. We
don't believe the skies have suddenly darkened over the entire
market. Fundamentals are still strong. There is no evidence of
surging inflation, the economy is expanding at a sustainable pace and
money continues to flow into the market.
For investors troubled by the recent volatility, we suggest two
time-tested approaches. First, make investment decisions based on your
time horizon and tolerance for risk. Second, diversifying among
different types of asset classes can help lessen the sting of a
sudden fall in stock prices. Your financial professional can help you
decide whether your portfolio is well balanced.
In closing, I'd like to call your attention to the new format of our
shareholder reports. The changes were intended to put you in closer
contact with the portfolio manager and make the reports more
interesting to read. We welcome your comments.
Sincerely,
Barbara J. Krumsiek
President and CEO
November 3, 1997
<PAGE>
A DISCUSSION WITH VICE PRESIDENT
OF EQUITIES, JOHN NICHOLS
How would you characterize the investment climate over the past six
months?
Modest inflation and relatively stable interest rates combined with
sustained growth in corporate profits allowed the stock market to
rack up additional gains. The market's advance was broad-based, with
all major stock market averages posting positive returns.
How did the Fund perform?
Small-caps staged an impressive turnaround during the final quarter
of this reporting period, which allowed the Fund to generate a
six-month return more in line with our benchmark, the Russell 2000
Index.
Calvert Group just announced a change in Strategic Growth Fund
management. Would you explain the reason for the change?
Just after the close of this reporting period, management of the
Fund's assets was transferred from Portfolio Advisory Services, Inc.
to Awad & Associates. We made this change in order to give investors
the benefit of a more proven investment approach.
This manager looks to identify small-capitalization companies whose
financial strength has not yet been recognized by Wall Street. The
firm focuses on companies that provide a niche product or service and
have above-average growth prospects.
Calvert Group also asked shareholders to approve a merger of this
Fund into another Calvert Group fund, the Calvert New Vision Small
Cap Fund. How would a merger benefit shareholders?
Shareholders would benefit from the significantly lower management
fees in the New Vision Fund. Also, a merger would potentially lower
fund operating expenses, since costs could be spread over a larger
shareholder base. In addition, we expect New Vision's share price to
be less volatile than Strategic Growth's, because this Fund does not
move in and out of the stock market as dramatically or utilize
options or futures contracts as a way of limiting risk or enhancing
returns.
If approved, the merger would occur on December 12, 1997. This would
not be a taxable event, since all of your shares of Strategic Growth
would be exchanged for shares of New Vision. The number of shares
exchanged will depend on the Funds' share prices on the day of the
transaction.
What's your outlook for the markets over the next six months?
The stock market will likely exhibit a high degree of volatility as
investors await the next Federal Reserve meeting. We are not
anticipating a steep increase in rates, although the Fed may take
some action to keep inflation in check.
Stocks are not likely to expand as much as they have in the past few
years, but the market's foundation looks solid. The economy is
growing at a healthy pace, inflation appears tame and corporations
continue to report growth in earnings. The portfolio manager's
ability to select stocks will likely be the key to good performance.
October 20, 1997
<PAGE>
Portfolio Statistics
September 30, 1997
Ten Largest Stock Holdings
% of Net Assets
Electronic Arts, Inc. 2.5%
CUC International, Inc. 2.4%
Arterial Vascular Engineer, Inc. 2.1%
Saville Systems 1.8%
Lone Star Technologies, Inc. 1.7%
Linens 'N Things, Inc. 1.7%
Xilinx, Inc. 1.6%
SunAmerica, Inc. 1.6%
Corporate Express, Inc. 1.6%
Tuboscope, Inc. 1.6%
Total 18.6%
Investment Performance
6 Months 12 Months
Strategic
Growth Fund 24.86% -11.04%
S&P 500 Index
Mthly. Reinvested 26.24% 40.43%
Russell 2000
Index TR 33.51% 33.19%
Investment performance is for Class A shares and does not
reflect the deduction of any front-end sales charge. TR
represents total return.
Source: Lipper Analytical Services, Inc.
<PAGE>
PORTFOLIO STATISTICS
September 30, 1997
Average Annual Total Returns
Class A Shares
as of 9/30/97
One year -15.26%
Since inception 6.20%
(5/05/94)
Class C Shares
as of 9/30/97
One year -11.69%
Since inception 6.90%
(5/05/94)
Performance Comparison
Comparison of change in value of $10,000 investment.
line graph here showing comparison from 5/94 to 9/97
Calvert Strategic Growth Fund (A) $12,277
Calvert Strategic Growth Fund (C) $12,555
S&P 500 Index Monthly Reinvested - $22,723
Russell 2000 Index TR - $18,741
Total returns assume reinvestment of dividends and, for Class A
shares, reflect the deduction of the Fund's maximum sales charge
of 4.75%. No sales charge has been applied to the index used for
comparison. Past performance is no guarantee of future results.
<PAGE>
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 1997
Equity Securities - 48.5% Shares Value
Airlines - 0.2%
Southwest Airlines Co. 5,600 $178,850
178,850
Building - 0.7%
Standard Pacific Corp. 76,800 806,400
806,400
Commercial Services - 4.2%
Concord EFS, Inc.* 46,100 1,244,700
CUC International, Inc.* 84,400 2,616,400
NCO Group, Inc.* 20,700 765,900
4,627,000
Computer - Memory Devices - 0.9%
Iomega Corp.* 37,600 982,300
982,300
Computer - Networks - 1.8%
3Com Corp.* 22,800 1,168,500
Cisco Systems, Inc.* 11,400 832,913
2,001,413
Computer - Peripheral Equipment - 1.2%
Bay Networks, Inc.* 33,500 1,293,937
1,293,937
Computer - Systems - 1.8%
Saville Systems* 27,700 1,945,925
1,945,925
Electronics - Semiconductor
Equipment - 1.6%
Xilinx, Inc.* 35,200 1,782,000
1,782,000
Electronics - Semiconductor
Manufacturing - 6.2%
Applied Materials, Inc.* 15,500 1,476,375
CFM Technologies, Inc.* 25,500 999,281
Integrated Silicon Solution, Inc.* 40,900 455,013
Linear Technology Corp. 10,600 728,750
Maxim Integrated Products, Inc.* 15,800 1,128,713
Novellus Systems, Inc.* 9,700 1,222,200
PMC Sierra, Inc.* 4,600 117,300
Uniphase Corp.* 8,700 691,650
6,819,282
<PAGE>
Equity Securities (Cont'd) Shares Value
Financial Services - 0.4%
Healthcare Financial Partners, Inc.* 14,300 $441,513
441,513
Food - 1.2%
Wild Oats Markets, Inc.* 42,100 1,257,737
1,257,737
Human Resources - Services - 1.2%
Corestaff, Inc.* 39,400 1,275,575
1,275,575
Insurance - 1.6%
SunAmerica, Inc. 45,300 1,775,194
1,775,194
Medical - Information Systems - 1.6%
HBO & Co. 45,400 1,713,850
1,713,850
Medical - Instruments - 2.1%
Arterial Vascular Engineer, Inc.* 41,200 2,286,600
2,286,600
Oil and Gas - Drilling - 0.7%
Patterson Energy, Inc.* 15,600 817,050
817,050
Oil and Gas - Field Services - 1.6%
Tuboscope, Inc. * 55,900 1,753,863
1,753,863
Pollution Control - Services - 0.1%
Newpark Resources, Inc. * 3,900 153,319
153,319
Printing - 0.2%
Consolidated Graphics, Inc.* 3,700 184,075
184,075
Retail - Apparel and Shoes - 0.0%
Vans, Inc.* 1,600 25,600
25,600
Retail - Bedding - 1.7%
Linens N Things, Inc.* 55,400 1,855,900
1,855,900
Retail - Office Supplies - 1.6%
Corporate Express, Inc.* 83,200 1,757,600
1,757,600
<PAGE>
Equity Securities (Cont'd) Shares Value
Software - Computer - 5.7%
Arbor Software Corp.* 26,700 $1,236,544
Intersolv, Inc.* 37,100 575,050
Memco Software Ltd.* 72,700 1,599,400
Peoplesoft, Inc.* 20,600 1,230,850
Rational Software Corp.* 65,600 1,049,600
Rogue Wave Software, Inc.* 37,200 511,500
6,202,944
Software - Education and
Entertainment - 2.5%
Crystal Dynamics, Inc., Series D+ 13,334 62,403
Electronic Arts, Inc.* 70,300 2,715,337
2,777,740
Software - Internet - 0.4%
America Online, Inc.* 5,200 392,275
392,275
Steel - 2.7%
Lone Star Technologies, Inc.* 35,800 1,868,313
Steel Dynamics, Inc.* 46,500 1,092,750
2,961,063
Telecommunications - 2.6%
Ciena Corp.* 30,000 1,485,937
Pacific Gateway Exchange, Inc.* 33,400 1,306,775
Sourcecom Corp., Series B, Preferred*+ 100,000 0
2,792,712
Textile - Apparel - 1.1%
Jones Apparel Group, Inc.* 23,300 1,258,200
1,258,200
Wholesale - Miscellaneous Goods - 0.9%
Action Performance Companies, Inc.* 34,200 996,075
996,075
Total Equity Securities
(Cost $46,371,184) 53,115,992
Options Purchased - 9.2% Contracts
Shares Value
S&P 500 Index Call Options
Expiration 12/20/97, Strike Price 890 1,000 8,112,500
S&P 500 Index Put Options
Expiration 12/20/97, Strike Price 900 1,000 1,937,500
Total Options Purchased (Cost $9,766,500) 10,050,000
Principal
Repurchase Agreements - 7.3% Amount Value
Union Bank of Switzerland: 6.20%,
dated 9/30/97, due 10/1/97
(Collateral: $8,189,995,
FNMA, 8.00%, 2/1/22) $8,000,000 8,000,000
Total Repurchase Agreements
(Cost $8,000,000) 8,000,000
<PAGE>
Principal
Corporate Obligations - 5.5% Amount Value
Garden City Hospital, Michigan
VRDN, 5.68%, 10/1/17,
LOC: First American Bank, MI** $3,000,000 $3,000,000
PRD Finance LLC., VRDN,
5.68%, 4/1/27, LOC: First
American Bank, MI** 3,000,000 3,000,000
Total Corporate Obligations
(Cost $6,000,000) 6,000,000
U.S. Treasury - 2.3%
U.S. Treasury Notes, 5.875%, 2/15/00 2,500,000 2,501,475
Total U.S. Treasury (Cost $2,457,543) 2,501,475
Community Loan Notes - 2.1%
Cascadia Revolving Loan Fund, 4.00%,
4/30/99+ 75,000 72,360
Dorchester Bay Economic Development
Corp., 4.50%, 6/30/00+ 100,000 95,903
Illinois Facilities Fund, 4.00%, 9/30/99+ 250,000 235,785
Low Income Housing Fund, 4.00%,
1/12/99+ 350,000 343,955
Mercy Loan Fund, 4.00%, 1/13/01+ 200,000 196,546
Minnesota Non Profits Assistance Fund,
3.00%, 4/30/01+ 200,000 191,906
Northeast South Dakota Energy
Conservation Corp.,
4.00%, 4/30/99+ 75,000 72,360
Ohio Community Development
Finance Fund, 5.00%,
5/31/99+ 500,000 485,040
Rural Community Assistance Fund,
4.00%, 6/28/99+ 100,000 95,570
Self Help Ventures Fund, 4.00%, 3/31/00+ 300,000 290,586
Unitarian Universalist Affordable
Housing Corp., 4.00%,
6/28/99+ 80,000 76,722
Washington Area Community
Investment Fund, 4.00%,
6/28/99+ 100,000 95,903
Working Capital Management,
4.00%, 9/30/02+ 50,000 47,157
Total Community Loan Notes
(Cost $2,380,000) 2,299,793
Municipal Obligations - 1.8%
Texas State VRDN, 5.69%, 12/1/27,
TOA: Citibank ** 2,000,000 2,000,000
Total Certificates of Deposit
(Cost $2,000,000) 2,000,000
Certificates of Deposit - 0.2%
Self Help Credit Union, 5.10%, 2/24/98 100,000 99,581
South Shore Bank, 5.35%, 2/9/98 200,000 199,108
Total Certificates of Deposit
(Cost $300,000) 298,689
TOTAL INVESTMENTS
(Cost $77,275,227) - 76.9% $84,265,949
Other assets and liabilities, net - 23.1% 25,305,723
Net Assets - 100% $109,571,672
<PAGE>
SCHEDULE OF SECURITIES SOLD SHORT
SEPTEMBER 30, 1997
Equity Securities Shares Value
Spine Tech, Inc. 5,600 $210,700
TOTAL EQUITY SECURITIES
SOLD SHORT
(Proceeds $282,404) $210,700
SCHEDULE OF OPTIONS WRITTEN
SEPTEMBER 30, 1997
Options Written Contracts
America Online, Inc., Call Options
Expiration 10/18/97, Strike Price 75 52 16,250
Applied Materials, Inc., Call Options
Expiration 10/18/97, Strike Price 110 155 9,687
Cisco Systems, Inc., Call Options
Expiration 10/18/97, Strike Price 85 114 1,425
Concord EFS, Inc., Call Options
Expiration 12/20/97, Strike Price 30 305 28,593
HBO & Co., Call Options
Expiration 10/18/97, Strike Price 42.5 227 11,350
Linear Technology Corp., Call Options
Expiration 10/18/97, Strike Price 75 106 8,613
Peoplesoft, Inc., Call Options
Expiration 10/18/97, Strike Price 65 206 14,163
S&P 500 Index Put Options
Expiration 12/20/97, Strike Price 890 1,000 1,700,000
S&P 500 Index Call Options
Expiration 12/20/97, Strike Price 900 1,000 7,350,000
TOTAL OPTIONS WRITTEN
(Premium $9,176,299) $9,140,081
* Non-income producing.
+ Restricted securities representing 2.2% of net assets
were valued by the Board of Trustees. See Note A.
** Optional tender features give these securities a shorter
effective maturity date.
Abbreviations:
VRDN: Variable Rate Demand Notes
LOC: Letter of Credit
TOA: Tender Option Agreement
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1997
Assets
Investment in securities, at value $84,265,949
Cash 216,911
Receivable for securities sold 34,296,756
Receivable for shares sold 141,027
Interest and dividends receivable 111,337
Deposits with brokers 1,106,459
Other assets 16,833
Total assets 120,155,272
Liabilities
Payable for securities purchased 56,127
Payable for shares redeemed 853,710
Securities sold short, at value (proceeds $282,404) 210,700
Options written, at value (premium $9,176,299) 9,140,081
Payable to Calvert Asset Management Co., Inc. 163,870
Payable to Calvert Administrative Services Co. 18,489
Payable to Calvert Shareholder Services, Inc. 28,116
Payable to Calvert Distributors, Inc. 32,488
Accrued expenses and other liabilities 80,019
Total liabilities 10,583,600
Net assets $109,571,672
Net Assets Consist of:
Paid-in capital applicable to the following
shares of beneficial interest;
unlimited number of no par shares authorized:
Class A: 5,464,096 shares outstanding 90,335,633
Class C: 859,328 shares outstanding 14,213,046
Undistributed net investment income (loss) (828,741)
Accumulated net gain (loss) on investments (1,246,910)
Net unrealized appreciation (depreciation) on investments 7,098,644
Net Assets $109,571,672
Net Asset Value per Share
Class A (based on net assets of $94,946,512) $17.38
Class C (based on net assets of $14,625,160) $17.02
<PAGE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED SEPTEMBER 30, 1997
Net Investment Income
Investment Income
Interest income $566,973
Dividend income 70,109
Total investment income 637,082
Expenses
Investment advisory fee 788,747
Transfer agency fees and expenses 184,227
Distribution Plan expenses:
Class A 121,342
Class C 80,090
Trustees' fees and expenses 31,517
Administrative fees 113,092
Custodian fees 21,142
Registration fees 18,089
Reports to shareholders 48,840
Professional fees 15,789
Miscellaneous expenses 64,090
Total expenses 1,486,965
Fees paid indirectly (21,142)
Net expenses 1,465,823
Net Investment Income (Loss) (828,741)
Realized and Unrealized Gain (Loss) on Investments
Net realized gain (loss) on:
Securities 16,001,197
Options written (392,137)
Securities sold short (1,086,979)
14,522,081
Change in unrealized appreciation or depreciation 11,283,410
Net Realized and Unrealized Gain
(Loss) on Investments 25,805,491
Increase (Decrease) in Net Assets
Resulting From Operations $24,976,750
See notes to financial highlights.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
Six Months Ended Year Ended
September 30, 1997 March 31, 1997
Increase (Decrease) in Net Assets
Net investment income (loss) $(828,741) $(1,480,503)
Net realized gain (loss) 14,522,081 (13,077,727)
Change in unrealized
appreciation or depreciation 11,283,410 (17,618,112)
Increase (Decrease) in Net
Assets Resulting
From Operations 24,976,750 (32,176,342)
Distributions to shareholders from
Net investment income:
Class A Shares - -
Class C Shares - -
Net realized gain:
Class A Shares - (7,118,058)
Class C Shares - (1,330,049)
Total distributions - (8,448,107)
Capital share transactions:
Shares sold:
Class A Shares 8,660,720 56,234,527
Class C Shares 832,456 8,079,284
Reinvestment of distributions:
Class A Shares - 6,395,403
Class C Shares - 1,289,807
Shares redeemed:
Class A Shares (29,852,917) (59,113,828)
Class C Shares (6,193,902) (12,207,897)
Total capital share transactions 26,553,643) 677,296
Total Increase (Decrease)
in Net Assets (1,576,893) (39,947,153)
Net Assets
Beginning of period 111,148,565 151,095,718
End of period (including undistributed
net investment
income (loss) of $(828,741)
and $0, respectively.) $109,571,672 $111,148,565
Capital Share Activity
Shares sold:
Class AShares 573,202 2,902,855
Class CShares 57,120 417,613
Reinvestment of distributions:
Class A Shares - 345,512
Class C Shares - 70,791
Shares redeemed:
Class A Shares (1,907,296) (3,190,167)
Class C Shares (405,624) (660,334)
Total capital share activity (1,682,598) (113,730)
See notes to financial highlights.
<PAGE>
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.
In determining fair value, the Board considers all relevant
qualitative and quantitative information available. These
factors are subject to change over time and are reviewed
periodically. The values assigned to fair value investments are
based on available information and do not necessarily represent
amounts that might ultimately be realized, since such amounts
depend on future developments inherent in long-term investments.
However, because of the inherent uncertainty of valuation, those
estimated values may differ significantly from the values that
would have been used had a ready market of the investments
existed, and the differences could be material.
At September 30, 1997, $2,362,196 or 2.2% of net assets, were
valued by 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. Although risk is mitigated by the
collateral, the Fund could experience a delay in recovering its
value and a possible loss of income or value if the counterparty
fails to perform in accordance with the terms of the agreement.
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.
Risks arise from the possible illiquidity of the options market and from
movements in security values.
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 current market value 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. Investment income, expenses and realized
and unrealized gains and losses are allocated to separate
classes of shares based upon the relative net assets of each
class.
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.
Estimates: The preparation of financial statements in
conformity with generally accepted accounting principles
requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of income and
expenses during the reporting period. Actual results could
differ from those estimates.
Expense Offset Arrangements: The Fund has an arrangement with
its custodian bank whereby the custodian's 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 up to .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.
For the period ended September 30, 1997, the performance fee
adjustment decreased management fees by $64,116.
During the period from January 1, 1995 through December 31, 1996, the
Advisor agreed to voluntarily reimburse certain Fund expenses. Under the
investment advisory agreement, such expenses could be recaptured by the Advisor
from January 1, 1997 through December 31, 1998 provided the Fund's expenses
ratio does not exceed the lowest state expense limitation prevailing at the time
of the voluntary reimbursement. Pursuant to this agreement, $47,638 of such
expenses are subject to recapture by the Advisor and voluntary expenses waived
prior to January 1, 1995 are now permanently waived.
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 1.00% annually of average daily net assets of each Class A
and Class C, respectively.
The Distributor received $40,876 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 $20,500 plus $1,500 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 securities, were $200,107,308 and $225,193,511,
respectively.
The cost of investments owned at September 30, 1997 was
substantially the same for federal income tax and financial
reporting purposes. Net unrealized appreciation aggregated
$6,990,722, of which $10,625,536 related to appreciated
securities and $3,634,814 related to depreciated securities.
Net realized capital loss carryforwards, for federal income tax
purposes, of $1,727,755 at March 31, 1997 may be utilized to
offset current and future capital gains until expiration through
March 31, 2005.
The following summarizes the Fund's transactions in written call
and put options during the period:
Options Contracts Premiums
Outstanding, beginning of period - $-
Written 16,185 16,225,768
Exercised (1,015) (433,135)
Closed (10,763) (6,375,668)
Expired (1,242) (240,666)
Outstanding, ending of period 3,165 $9,176,299
Securities having an aggregate market value of $17,669,713 were
identified to cover open options written at September 30, 1997.
Note D-Line of Credit
Effective July 1, 1997, a financing agreement is in place with
all Calvert Group Funds
and State Street Bank and Trust Company ("the Bank"). Under the
agreement, the Bank
is providing an unsecured line of credit facility, in the
aggregate amount of $50 million ($25 million committed and $25
million uncommitted), to be accessed by the Funds for temporary
or emergency purposes only. Borrowings under this facility bear
interest at the overnight Federal Funds Rate plus .50% per
annum. A commitment fee of .10% per annum will be incurred on
the unused portion of the committed facility which will be
allocated to all participating funds. This fee is paid quarterly
in arrears. The Fund had no loans outstanding pursuant to this
line of credit at September 30, 1997.
Note E-Subsequent Event
The shareholders of each class of the Fund will be asked to vote
on December 9, 1997
on a merger into Calvert New Vision Small Cap Fund ("New
Vision"). The merger, if approved, would be effected by a
tax-free exchange of net assets of the Fund for respective shares
of New Vision.
<PAGE>
FINANCIAL HIGHLIGHTS
Periods Ended
September 30, March 31,
Class A Shares 1997 1997
Net asset value, beginning $13.92 $18.64
Income from investment operations
Net investment income (loss) (.11) (.16)
Net realized and unrealized gain (loss)3.57 (3.53)
Total from investment operations 3.46 (3.69)
Distributions from
Net investment income - -
Net realized gain - (1.03)
Total distributions - (1.03)
Total increase (decrease) in
net asset value 3.46 (4.72)
Net asset value, ending $17.38 $13.92
Total return* 24.86% (21.17%)
Ratios to average net assets:
Net investment income (loss) (.77%)(a) (.73%)
Total expenses+ 2.53%(a) 2.32%
Net expenses 2.50%(a) 2.30%
Expenses reimbursed - .10%
Portfolio turnover 221% 151%
Average commission rate paid $.0666 $.0782
Net assets, ending (in thousands) $94,947 $94,625
Number of shares outstanding,
ending (in thousands) 5,464 6,798
Periods Ended
March 31, March 31,
Class A Shares 1996 1995**
Net asset value, beginning $16.96 $15.00
Income from investment operations
Net investment income (loss) .13 .20
Net realized and unrealized gain (loss) 1.96 2.21
Total from investment operations 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 1.68 1.96
Net asset value, ending $18.64 $16.96
Total return* 12.56% 16.08%
Ratios to average net assets:
Net investment income (loss) .90% 1.47%(a)
Total expenses+ 2.32% N/A
Net expenses 2.29% 2.55%(a)
Expenses reimbursed .14% .31%(a)
Portfolio turnover 402% 480%
Average commission rate paid N/A N/A
Net assets, ending (in thousands) $125,606 $107,004
Number of shares outstanding,
ending (in thousands) 6,740 6,310
<PAGE>
FINANCIAL HIGHLIGHTS
Periods Ended
September 30, March 31,
Class C Shares 1997 1997
Net asset value, beginning $13.68 $18.47
Income from investment operations
Net investment income (loss) (.29) (.35)
Net realized and unrealized gain (loss )3.63 (3.41)
Total from investment operations 3.34 (3.76)
Distributions from
Net investment income - -
Net realized gain - (1.03)
Total distributions - (1.03)
Total increase (decrease) in
net asset value 3.34 (4.79)
Net asset value, ending $17.02 $13.68
Total return* 24.42% (21.75%)
Ratios to average net assets:
Net investment income (loss) (5.67%)(a) (2.00%)
Total expenses+ 3.21%(a) 3.11%
Net expenses 3.18%(a) 3.09%
Expenses reimbursed - -
Portfolio turnover 221% 151%
Average commission rate paid $.0666 $.0782
Net assets, ending (in thousands) $14,625 $16,524
Number of shares outstanding,
ending (in thousands) 859 1,208
Periods Ended
March 31, March 31,
Class C Shares 1996 1995**
Net asset value, beginning $16.86 $15.00
Income from investment operations
Net investment income (loss) (.02) .12
Net realized and unrealized gain (loss) 1.94 2.18
Total from investment operations 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 1.61 1.86
Net asset value, ending $18.47 $16.86
Total return* 11.57% 15.32%
Ratios to average net assets:
Net investment income (loss) .02% .83%(a)
Total expenses+ 3.18% N/A
Net expenses 3.16% 3.45%(a)
Expenses reimbursed - .20%(a)
Portfolio turnover 402% 480%
Average commission rate paid N/A N/A
Net assets, ending (in thousands) $25,490 $19,778
Number of shares outstanding,
ending (in thousands) 1,380 1,173
(a) Annualized
* Total return 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 May 5, 1994 inception.
N/A Disclosure not applicable to prior periods.
<PAGE>
Calvert Group's
Family of Funds
Tax-Exempt
Money Market Funds
CTFR Money Market Portfolio
CTFR California Money Market Portfolio
Taxable
Money Market Funds
First Government Money Market Fund
CSIF Money Market Portfolio
Balanced Fund
CSIF Managed Growth Portfolio
Municipal Funds
CTFRLimited-Term Portfolio
CTFR Long-Term Portfolio
CTFR Vermont Municipal Portfolio
National Muni. Intermediate Portfolio
Arizona Muni. Intermediate Portfolio
California Muni. Intermediate Portfolio
Florida Muni. Intermediate Portfolio
Maryland Muni. Intermediate Portfolio
Michigan Muni. Intermediate Portfolio
New York Muni. Intermediate Portfolio
Pennsylvania Muni. Intermediate Portfolio
Virginia Muni. Intermediate Portfolio
Taxable Bond Funds
CSIF Bond Portfolio
Income Fund
Equity Funds
CSIFEquity Portfolio
Capital Accumulation Fund
CWV International Equity Fund
New Vision Small Cap Fund
Strategic Growth Fund
New Africa Fund
<PAGE>
Calvert Group
INformation
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 1000 North
Bethesda, Maryland 20814
Registered, Certified
or Overnight Mail
Calvert Group
c/o NFDS, 6th Floor
1004 Baltimore
Kansas City, MO 64105-1807
Web Site
http://www.calvertgroup.com
Please check the inside back cover for
Calvert Group's Family of Funds.
This report is intended to provide fund
information to shareholders. It is not authorized
for distribution to prospective investors unless
preceded or accompanied by a prospectus.
