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 have small-cap stocks as a group performed?
After posting disappointing returns for the first half of 1997, small
stocks staged an impressive turnaround in the last quarter covered by
the report. Investors were finally convinced that large-cap stocks
had become too expensive and that small- and mid-cap issues
represented better values.
How did the Fund perform relative to its benchmark?
Although the Calvert New Vision Small Cap Fund just began operations
on January 31, 1997, we were generally well positioned to participate
in this recovery. The Fund's growth orientation and significant
exposure to some of the strongest sectors, including technology and
retail, were positive for performance.
Specific stock picks in the technology and health care groups
accounted for much of the margin of underperformance. Going into the
rally, we still had a sizable cash position (20.12% of assets on June
30, 1997). This also held us back relative to the Index, which is
always fully invested.
Calvert Group just announced a change in New Vision Fund management.
Would you explain the reason for the change?
Just after the close of this reporting period, management of New
Vision Fund 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 strategy for selecting
investments and additional experience managing small-cap stock
portfolios. The change does not in any way affect the New Vision
Fund's investment strategy or objective.
In your view, what's ahead for small-cap investors?
Typically, small-cap stocks lead or lag large-caps for a protracted
period, and we're hopeful we are entering a cycle of sustained
overperformance. Still, we've had now almost three years of very
generous stock market returns across all major market averages. The
market's advance is not likely to be as broad going forward, and
strong stock selection will likely be the critical factor.
October 20, 1997
<PAGE>
Portfolio Statistics
September 30, 1997
Ten Largest Stock Holdings
% of Net Assets
GeoTel Communications 4.5%
CareMatrix Corp. 3.8%
Pacific Gateway Exchange, Inc. 3.4%
USLD Communications Corp. 3.3%
CFM Technologies 3.1%
Linens 'N Things, Inc. 3.0%
Vans, Inc. 3.0%
Healthcare Financial Partners, Inc. 2.9%
NCO Group, Inc. 2.9%
Wild Oats Markets, Inc. 2.8%
Total 32.7%
Investment Performance
6 Months
New Vision
Small Cap Fund 30.53%
Russell 2000 Index TR 33.51%
Lipper Small-Cap Funds Index 34.91%
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
Cumulative Total Returns
Class A Shares
as of 9/30/97
Since inception -.63%
(1/31/97)
Class C Shares
as of 9/30/97
Since inception 4.13%
(1/31/97)
Total returns assume reinvestment of dividends and, for Class A shares,
reflect the deduction of the Fund's maximum sales charge of 4.75%. Past
performance is no guarantee of future results.
<PAGE>
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 1997
Equity Securities - 78.3% Shares Value
Building - 2.3%
Standard Pacific Corp. 7,700 $80,850
80,850
Commercial Services - 3.9%
CKS Group, Inc.* 1,000 37,500
NCO Group, Inc.* 2,800 103,600
141,100
Computer - Integrated Systems - 1.7%
Daou Systems, Inc.* 1,900 59,375
59,375
Computer - Services - 2.0%
Sapient Corp.* 1,400 71,225
71,225
Electronics - Semiconductor
Equipment - 2.1% PRI Automation, Inc.* 1,300 76,050
76,050
Electronics - Semiconductor
Manufacturing - 8.1% CFM Technologies,
Inc.* 2,800 109,725
PMC Sierra, Inc.* 3,300 84,150
Sanmina Corp.* 1,100 95,219
289,094
Financial Services - 2.9%
Healthcare Financial Partners, Inc.* 3,400 104,975
104,975
Food - 2.7%
Wild Oats Markets, Inc.* 3,300 98,588
98,588
Human Resources - Services - 2.7%
Corestaff, Inc.* 3,000 97,125
97,125
Medical Products - 2.4%
Bionx Implants, Inc.* 3,900 86,288
86,288
Oil and Gas - Machinery and
Equipment - 2.6%
Varco International, Inc.* 1,900 92,150
92,150
Pharmaceuticals - 1.3%
Guilford Pharmaceuticals, Inc.* 1,600 47,200
47,200
<PAGE>
Equity Securities (Cont'd) Shares Value
Pollution Control - Services - 2.8%
Newpark Resources, Inc.* 2,500 $98,281
98,281
Printing - 1.3%
Consolidated Graphics, Inc.* 900 44,775
44,775
Retail - Apparel and Shoes - 3.0%
Vans, Inc.* 6,700 107,200
107,200
Retail - Bedding - 3.0%
Linens N Things, Inc.* 3,200 107,200
107,200
Retail - Discount - 2.6%
Tuesday Morning Corp.* 4,000 94,250
94,250
Retail - Restaurants - 1.4%
Showbiz Pizza Time, Inc.* 2,100 48,300
48,300
Retirement - Aged Care - 6.3%
CareMatrix Corp.* 5,300 134,487
Curative Health Services, Inc.* 2,900 90,263
224,750
Software - Computer - 7.0%
Rational Software Corp.* 5,000 80,000
Siebel Systems, Inc.* 1,900 80,869
Vantive Corp.* 3,700 88,800
249,669
Telecommunications - 11.1%
GeoTel Communications Corp.* 8,500 160,437
Pacific Gateway Exchange, Inc.* 3,100 121,287
USLD Communications Corp.* 5,800 116,363
398,087
Transportation - Trucking - 2.7%
Swift Transportation Co., Inc.* 3,100 98,037
98,037
Wholesale - Miscellaneous Goods - 2.4%
Action Performance Companies, Inc.* 3,000 87,375
87,375
Total Equity Securities (Cost $2,329,222 ) 2,801,944
TOTAL INVESTMENTS (Cost $2,329,222)
- 78.3% $2,801,944
Other assets and liabilities, net - 21.7% 776,272
Net Assets - 100% $3,578,216
* non income producing
<PAGE>
SCHEDULE OF OPTIONS WRITTEN
SEPTEMBER 30, 1997
Options Written Contracts Value
PRI Automation, Inc., Call Options
Expiration 11/22/97, Strike Price 60 13 $6,500
Sanmina Corp., Call Options
Expiration 10/18/97, Strike Price 85 11 5,088
TOTAL OPTIONS WRITTEN
(Premium $12,546 ) $11,588
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1997
Assets
Investments in securities, at value $2,801,944
Cash 727,776
Receivable for securities sold 30,421
Receivable for shares sold 12,701
Receivable from Calvert Asset Management Co., Inc. 1,979
Other assets 20,845
Total assets 3,595,666
Liabilities
Options written, at value (premiums $12,546) 11,588
Payable for Calvert Administrative Services Co. 300
Payable to Calvert Shareholders Services, Inc. 1,116
Payable to Calvert Distributors, Inc. 986
Accrued expenses and other liabilities 3,460
Total liabilities 17,450
Net assets $3,578,216
Net Assets Consist of:
Paid-in capital applicable to the following
shares of beneficial interest;
unlimited number of no par shares authorized:
Class A: 208,338 shares outstanding $2,879,597
Class C: 20,368 shares outstanding 245,042
Undistributed net investment income (loss) (11,644)
Accumulated net realized gain (loss) on investments (8,459)
Net unrealized appreciation (depreciation)
on investments 473,680
Net Assets $3,578,216
Net Asset Value per Share
Class A (based on net assets of $3,259,982) $15.65
Class C (based on net assets of $318,234) $15.62
See notes to financial statements
<PAGE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED SEPTEMBER 30, 1997
Net Investment Income
Investment Income
Interest Income $2,618
Dividend income 330
Total investment income 2,948
Expenses
Investment advisory fee 12,304
Transfer agency fees and expenses 5,965
Distribution Plan expenses:
Class A 2,953
Class C 1,858
Trustee's fees and expenses 732
Administrative fees 1,367
Custodian fees 5,370
Registration fees 28,700
Reports to shareholders 4,758
Miscellaneous 504
Reimbursement from Advisor (44,549)
Total expenses 19,962
Fees paid indirectly (5,370)
Net expenses 14,592
Net Investment Income (Loss) (11,644)
Realized and Unrealized Gain (Loss) on Investments
Net realized gain (loss) 160,206
Change in unrealized appreciation or depreciation 583,945
Net Realized and Unrealized Gain
(Loss) on Investments 744,151
Increase (Decrease) in Net Assets
Resulting From Operations $732,507
See notes to financial statements
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Six Months January 31,
Ended 1997 (Inception)
September 30, to March 31,
Increase (Decrease) in Net Assets 1997 1997
Operations
Net investment income (loss) $(11,644) $ -
Net realized gain (loss) 160,206 (168,665)
Change in unrealized
appreciation or depreciation 583,945 (110,265)
Increase (Decrease) in Net Assets
Resulting From Operations 732,507 (278,930)
Capital share transactions:
Shares sold:
Class A Shares 2,120,481 1,525,010
Class C Shares 300,912 241,183
Shares redeemed:
Class A Shares (698,976) (66,917)
Class C Shares (291,693) (5,361)
Total capital share transactions 1,430,724 1,693,915
Total Increase (Decrease)
in Net Assets 2,163,231 1,414,985
Net Assets
Beginning of period 1,414,985 -
End of period (including undistributed
net investment income (loss) of $(11,644)
and $0, respectively.) $3,578,216 $1,414,985
Capital Share Activity
Shares sold:
Class A Shares 155,831 106,577
Class C Shares 23,309 17,144
Shares redeemed:
Class A Shares (48,840) (5,230)
Class C Shares (19,631) (454)
Total capital share activity 110,669 118,037
See notes to financial statements
<PAGE>
NOTES TO FINANCIAL STATEMENTS Note A - Significant Accounting Policies
General: The Calvert New Vision Small Cap Fund (the "Fund"), a series of The
Calvert Fund, is registered under the Investment Company Act of 1940 as a
diversified, open-end management investment company. The operations of each
series are accounted for separately. The Fund, which commenced operations on
January 31, 1997, 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. Other securities and assets for which market
quotations are not available or deemed inappropriate are valued in good faith
under the direction of the Board of Trustees.
Options: The 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.
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. 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 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 .90% of the Fund's average daily net
assets. Calvert Administrative Services Company, an affiliate of the Advisor,
provides administrative services to the Fund for an annual fee, payable monthly,
of .10% 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 .25% and 1.00% annually of average
daily net assets of each Class A and Class C, respectively. The Distributor
received $10,300 as its portion of the 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. 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 $4,161,813 and $2,652,837, 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 $472,722, of which $514,583 related to appreciated securities and
$41,861 related to depreciated securities. Securities having an aggregate market
value of $171,269 were identified to cover open options written at September 30,
1997. Net realized capital loss carryforwards, for federal income tax purposes,
of $149,194 at March 31, 1997 may be utilized to offset current and future
capital gains until expiration through March 31, 2005.
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 Calvert Strategic Growth Fund ("Strategic
Growth") will be asked to vote on December 9, 1997 on a merger into the Fund.
The merger, if approved, would be effected by a tax-free exchange of net assets
of Strategic Growth, for respective shares of the Fund.
<PAGE>
FINANCIAL HIGHLIGHTS
Periods Ended
September 30, March 31,
Class A Shares 1997 1997^
Net asset value, beginning $11.99 $15.00
Income from investment operations
Net investment income (loss) (.05) -
Net realized and unrealized gain (loss) 3.71 (3.01)
Total from investment operations 3.66 (3.01)
Distributions from
Net investment income - -
Net realized gain - -
Total distributions - -
Total increase (decrease) in net asset value 3.66 (3.01)
Net asset value, ending $15.65 $11.99
Total return* 30.53% (20.07%)
Ratios to average net assets:
Net investment income (loss) (.82%)(a) -
Total expenses~ 1.44%(a) .82%(a)
Net expenses 1.03%(a) -
Expenses reimbursed 2.53%(a) 8.96%(a)
Portfolio turnover 129% 97%
Average commission rate paid $.0485 $.0500
Net assets, ending (in thousands) $3,260 $1,215
Number of shares outstanding,
ending (in thousands) 208 101
Periods Ended
September 30, March 31,
Class C Shares 1997 1997^
Net asset value, beginning $11.99 $15.00
Income from investment operations
Net investment income (loss) (.10) -
Net realized and unrealized gain (loss) 3.73 (3.01)
Total from investment operations 3.63 (3.01)
Distributions from
Net investment income - -
Net realized gain - -
Total distributions - -
Total increase (decrease) in net
asset value 3.63 (3.01)
Net asset value, ending $15.62 $11.99
Total return* 30.28% (20.07%)
Ratios to average net assets:
Net investment income (loss) (1.07%)(a) -
Total expenses~ 1.56%(a) .82%(a)
Net expenses 1.30%(a) -
Expenses reimbursed 7.86%(a) 21.08%(a)
Portfolio turnover 129% 97%
Average commission rate paid $.0485 $.0500
Net assets, ending (in thousands) $318 $200
Number of shares outstanding,
ending (in thousands) 20 17
(a) Annualized
~ Ratio reflects total expenses before reduction for fees paid
indirectly; such reductions are included in the ratio of net expenses.
* Total return does not reflect deduction of Class A front-end sales charge.
^ From January 31, 1997 inception.
<PAGE>
Calvert New Vision Small Cap Fund
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
Principal Underwriter
Calvert Distributors, Inc.
4550 Montgomery Avenue
Suite 1000 North
Bethesda, Maryland 20814
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.
<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
printed on recycled paper
using soy-based inks
<PAGE>
