SEPTEMBER 30, 1998
ANNUAL
REPORT
CALVERT INCOME FUND
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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.
Calvert Group's
Family of Funds
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
CTFR Limited-Term Portfolio
CTFR Long-Term Portfolio
CTFR Vermont Municipal Portfolio
National Muni. Intermediate Portfolio
California Muni. Intermediate Portfolio
Maryland Muni. Intermediate Portfolio
Virginia Muni. Intermediate Portfolio
Taxable Bond Funds
CSIF Bond Portfolio
Income Fund
Equity Funds
New CSIF Managed Index Portfolio
CSIF Equity Portfolio
Capital Accumulation Fund
CWV International Equity Fund
New Vision Small Cap Fund
New Africa Fund
printed on recycled paper
using soy-based inks
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TABLE OF CONTENTS
President's Letter 1
Portfolio Manager Remarks 2
Report of Independent Accountants 4
Portfolio of Investments 5
Statement of Assets and Liabilities 7
Statements of Operations 8
Statements of Changes in net Assets 9
Notes to Financial Statements 10
Financial Highlights 13
Dear Shareholders:
I'd like to take a minute to share with you our views on the current
investment environment and offer some information you can use to put recent
financial market events in perspective.
Today's investment climate reflects an unprecedented confluence of factors:
1. Global economic turmoil. The financial crisis touched off in Asia has
spread, by way of Russia, to emerging markets in Latin America, Africa and
elsewhere. Weakened economies abroad affect the profit outlook for U.S.
companies.
2. Low interest rates in the U.S. The shakeup of world economies and markets
caused investors to seek shelter in the safest securities, especially U.S.
Treasuries. Increased demand for fixed-income securities has pushed Treasury
yields to historic lows.
3. A high level of volatility. The Standard & Poor's 500 Stock Index posted 17
consecutive quarters of positive returns before surprising investors with
negative returns for the third quarter of 1998. Since the end of that quarter,
the S&P 500 has rallied back and, as of this writing, is in positive territory
again for the year.
No one can assure you there won't be further jolts. However, we believe the
underpinnings of the market are solid. Our forecast calls for slower growth in
the U.S., but not a recession, and continued low interest rates. We are also
encouraged by recent progress to implement solutions that should help to take
the pressure off world markets.
You should know that Calvert Group fund managers are working to capitalize on
opportunities, within appropriate levels of risk for each portfolio. This
challenging environment underscores the value of professional money
management, and we certainly appreciate your trust.
Sincerely,
Barbara J. Krumsiek
President and CEO
October 20, 1998
<PAGE>
Greg Habeeb_of CAlvert Asset Management Company
What were the driving forces in the credit markets?
The economic and market crises in Asia, Russia, and Latin America have
dramatically influenced the U.S. financial markets. Treasuries benefited from
a flight to quality as investors worldwide sought safety and liquidity; all
other fixed-income securities lost significant value relative to Treasury
securities. Also heavily affected were U.S. capital markets including
investment-grade and junk bond markets. Liquidity dried up and new issuance
ground to a halt, widening spreads over risk free Treasuries to levels not
seen since past recessions.
The Federal Reserve shifted its monetary policy from tightening to neutral to
easing throughout the course of the year. The decline in interest rates
supported higher bond prices.
What was your strategy?
For the first six months of the year our strategy was the same as always; to
hold a portfolio comprised mainly of corporate debt securities and to enhance
returns relative to our competitors through frequent relative value trades.
Given the lack of demand for non-Treasury securities, many corporations
postponed issuance of new securities and supply dried up. This situation was
made worse by the continued deterioration of world economies. In July, we
shifted to a strategy of investing new money only in bonds rated AAA or better.
How did the Fund perform relative to its peer group?
Our higher credit quality weightings helped us to outperform the Lipper BBB
Average of corporate funds, but the flight to quality into Treasuries caused
us to underperform the Lehman Aggregate Index, which is comprised of funds
investing in corporate and/or government securities.
What should investors expect in the coming months?
We expect interest rates will remain low and may trend lower still. Price
appreciation will likely continue to be the primary component of your return.
Right now, the financial markets are struggling with a world economy that has
weakened dramatically from one year ago, extreme volatility and exceptionally
risk-averse investors. In order for us to return to our strategy of relative
value trading, some stability will need to return to the financial markets.
Relief is likely to come only when there are fundamental positive developments
for the troubled economies of Asia, Russia and Latin America.
October 14, 1998
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PORTFOLIO STATISTICS
September 30, 1998
Average Annual Total Returns
One Year 5.79%
Five Year 5.34%
Ten Year 8.54%
Since Inception 9.70%
(10/12/82)
PERFORMANCE COMPARISON
Comparison of changes in value of $10,000
Investment (Source: Lipper Analytical Services, Inc.)
(Line graph here which shows the following from 10/1/88 - 9/30/98
Calvert Income Fund - $22,685
Lehman Aggregate Bond Index TR - $24,341
Lipper Corporate Debt Funds BBB Rated Index - $23,586
Total returns assume reinvestment of dividends and reflect the deduction of
the Fund's maximum front-end sales charge of 3.75%. No sales charge has been
applied to the index used for comparison. Past performance is no guarantee of
future results.
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Report of Independent Accountants
To the Board of Trustees and Shareholders of Calvert Income Fund:
In our opinion, the accompanying statement of assets and liabilities,
including the portfolio of investments, and the related statements of
operations, statements of changes in net assets and financial highlights present
fairly, in all material respects, the financial position of Calvert Income Fund
(one of the Portfolios comprising The Calvert Fund, hereafter referred to as the
"Fund"), at September 30, 1998, and the results of its operations for the year
then ended, the changes in its net assets for each of the two years in the
period then ended and the financial highlights for each of the periods indicated
therein, in conformity with generally accepted accounting principles. Theses
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatment. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at
September 30, 1998 by correspondence with custodians provide a reasonable basis
for the opinion expressed above.
PricewaterhouseCoopers LLP
Baltimore, Maryland
November 6, 1998
<PAGE>
Schedule of Investments
SEPTEMBER 30, 1998
Principal
_ Debt Securities - 100.2% Amount Value
Corporate Bonds - 86.3%
BCI US Funding LLC, 8.01%, 12/29/49 $1,500,000 $1,492,695
Chase Manhattan Auto Owner, 5.80%, 1/15/02 3,000,000 3,033,690
Conseco, Inc., 6.80%, 6/15/05 4,000,000 4,105,000
Conseco, Inc. Medium Term Notes, 6.40%, 6/15/01 1,300,000 1,314,261
Dillards Inc., 6.39%, 8/1/03 1,500,000 1,562,085
Dime Bancorp Inc., 6.12%, 3/10/99 2,000,000 2,002,020
Dime Capital Trust I, 9.33%, 5/6/27 2,000,000 2,268,500
Fuji JGB Investment LLC, 9.87%, 12/31/49 3,000,000 1,377,231
Greenpoint Capital Trust I, 9.10%, 6/1/27 600,000 661,692
Hospitality Properties Trust, 7.00%, 3/1/08 1,000,000 1,029,890
MCI Communications Corp., 6.125%, 4/15/02 1,000,000 1,025,960
Medpartners Inc., 6.875%, 9/1/00 1,000,000 800,000
Merita Bank Ltd., 7.15%, 12/29/49 250,000 257,724
Meyer Fred Inc., 7.375, 3/1/05 1,000,000 1,045,690
News America Inc., 6.703%, 5/21/04 1,000,000 1,054,996
North American Mortgage, 7.315%, 8/25/03 2,000,000 2,128,780
Occidental Petroleum Corp., 6.40%, 4/1/03 1,000,000 1,024,070
Onbank Capital Trust I, 9.25%, 2/1/27 1,000,000 1,162,550
Owens Corning, 7.50%, 8/1/18 2,000,000 1,956,440
Socgen Real Estate Co., LLC, 7.64%, 12/29/49 500,000 509,565
Sovereign Bancorp, Inc., 6.75%, 9/1/00 1,500,000 1,522,215
Union Bank Norway, 7.35%, 12/31/49 2,000,000 2,098,340
Zurich Capital Trust, 8.376%, 6/1/37 2,250,000 2,462,130
35,895,524
Mortgage Securities - 4.9%
Federal National Mortgage
Association, 6.08%, 9/1/28 1,900,000 2,013,069
Government National Mortgage
Association, Pool 137518, 11.00%,
10/15/15 1,116 1,261
2,014,330
Municipal Bonds - 5.1%
Chickasaw Nation Oklahoma Certificate
of Participation,
10.00%, 8/1/03* 1,171,219 702,731
Dauphin County Pennsylvania Health
Center General Authority
Revenue Bond, 7.25%, 9/1/10 1,435,000 1,436,134
2,138,865
US Treasury - 3.9%
US Treasury Bonds, 5.50%, 8/15/28 1,500,000 1,620,705
1,620,705
Total Debt Securities (Cost $41,435,998) 41,669,424
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Equity Securities - 2.3% Shares Value
Preferred Stocks - 2.3%
Highwood Properties, Inc., Series A,
Preferred, 8.625% 1,000 $950,390
Total Equity Securities (Cost $1,039,520) 950,390
TOTAL INVESTMENTS (Cost $42,475,518) - 102.4% 42,619,814
Securities Sold Short - (5.2%) (2,187,500)
Other assets in excess of liabilities - 2.8% 1,174,920
Net Assets - 100% $41,607,234
SCHEDULE OF SECURITIES SOLD SHORT
SEPTEMBER 30, 1998
Principal
US Treasury Amount Value
US Treasury Notes, 5.625%, 5/15/08 $2,000,000 $2,187,500
Total Securities Sold Short (Proceeds $2,146,875) 2,187,500
*This security is in default and was valued by the Board of Trustees.
See Note A.
See notes to financial statements.
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STATEMENT OF ASSETS AND LIABILITIES
September 30, 1998
Assets Value
Investments in securities, at value $42,619,814
Cash 6,000
Receivable for securities sold 6,913,685
Receivable for shares sold 97,551
Interest and dividends receivable 652,880
Other assets 8,451
Total assets 50,298,381
Liabilities
Payable to Bank 2,385,994
Payable for securities purchased 3,991,534
Payable for shares redeemed 2,169
Payable to Calvert Asset Management Co.,Inc. 38,411
Payable to Calvert Shareholders Services, Inc. 1,229
Payable to Calvert Distributors, Inc. 5,028
Securities sold short, at value (proceeds $2,146,875) 2,187,500
Payable for interest receivable for securities sold short 43,563
Accrued expenses and other liabilities 35,719
Total liabilities 8,691,147
Net assets $41,607,234
Net Assets Consist of:
Paid in capital applicable to 2,422,690
outstanding shares of beneficial interest,
unlimited number of no par shares authorized $40,658,735
Undistributed net investment income 35,002
Accumulated net realized gain (loss) on investments 809,826
Net unrealized appreciation (depreciation) on investments 103,671
Net Assets $41,607,234
Net Asset Value Per Share $17.17
See notes to financial statements.
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Statement of Operations _Year Ended September 30, 1998
Net Investment Income
Investment Income
Interest income $2,824,129
Dividend income 84,413
Total investment income 2,908,542
Expenses
Investment advisory fee 278,234
Transfer agency fees and expenses 72,426
Distribution plan expenses 59,622
Trustees' fees and expenses 4,696
Custodian fees 69,835
Registration fees 22,215
Reports to shareholders 19,536
Professional fees 36,395
Miscellaneous 7,379
Total expenses 570,338
Fees paid indirectly (30,676)
Net expenses 539,662
Net Investment Income 2,368,880
Realized and Unrealized Gain (Loss) on Investments
Net realized gain (loss) on:
Securities 1,245,285
Futures 1,575
1,246,860
Change in unrealized appreciation or (depreciation) 155,171
Net Realized and Unrealized Gain (Loss)
on Investments 1,402,031
Increase (Decrease) in Net Assets Resulting
From Operations $3,770,911
See notes to financial statements.
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Statements of Changes in Net Assets
Year Ended Year Ended
Sept. 30, Sept. 30,
Increase (Decrease) in Net Assets 1998 1997
Operations
Net investment income $2,368,880 $2,510,768
Net realized gain (loss) 1,246,860 1,530,802
Change in unrealized appreciation
or (depreciation) 155,171 306,476
Increase (Decrease) in Net Assets
Resulting From Operations 3,770,911 4,348,046
Distributions to shareholders from
Net investment income:
Class A Shares (2,333,878) (2,507,902)
Class C Shares - (2,866)
Net realized gain:
Class A Shares (1,457,042) (13,944)
Total distributions (3,790,920) (2,524,712)
Capital share transactions:
Shares sold:
Class A Shares 6,352,284 3,817,591
Class C Shares - 4,736
Reinvestment of distributions:
Class A Shares 3,189,636 2,067,569
Class C Shares - 2,459
Shares redeemed:
Class A Shares (7,216,787) (12,829,618)
Class C Shares - (1,393,740)
Total capital share transactions 2,325,133 (8,331,003)
Total Increase (Decrease) in Net Assets 2,305,124 (6,507,669)
Net Assets
Beginning of year 39,302,110 45,809,779
End of year (including undistributed net
investment income of $35,002) $41,607,234 $39,302,110
Capital Share Activity
Shares sold:
Class A Shares 369,441 228,602
Class C Shares - 291
Reinvestment of distributions:
Class A Shares 187,050 123,607
Class C Shares - 151
Shares redeemed:
Class A Shares (419,266) (764,324)
Class C Shares - (85,584)
Total capital share activity 137,225 (497,257)
See notes to financial statements.
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Notes to Financial Statements
Note A- Significant Accounting Policies
General: The Calvert Income 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. Shares of the Fund are sold with a maximum front-end
sales charge of 3.75%. On October 29, 1996, all outstanding Class C shares in
the Fund 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. 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. Further, because of
the inherent uncertainty of valuation, those estimated values may differ
significantly form the values that would have been used had a ready market of
the investments existed, and the differences could be material.
At September 30, 1998, $702,731 or 1.7% 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 from writing or purchasing option securities arise from possible
illiquidity of the options market and the movement in the value of the
investment or in interest rates. The risk associated with purchasing options
is limited to the premium originally paid.
<PAGE>
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 in 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.
Short Sales: The Fund may use short sales of U.S. Treasury securities the
limited purpose of hedging the Fund's duration. Any short sales will be
covered with an equivalent amount of high quality, liquid securities in a
segregated account at the Fund's custodian.
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.
Distributions to Shareholders: Distributions to shareholders are recorded by
the Fund on ex-dividend date. Dividends from net investment income are paid
monthly. 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 Arrangements: The Fund has an arrangement with its custodian
bank whereby the custodian's and transfer agent's fees may be 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 .70% of the Fund's average daily net assets.
Calvert Distributors, Inc., an affiliate of the Advisor, is the distributor
and principal underwriter for the Fund. The Distribution Plan allows the Fund
to pay the distributor for expenses and services associated with distribution
of shares. The expenses paid may not exceed .50% annually of the Fund's
average daily net assets.
The Distributor received $20,132 as its portion of the commissions charged on
sales of the Fund's shares.
Calvert Shareholder Services, Inc., an affiliate of the Advisor, is the
shareholder servicing agent for the Fund. National Financial Data Services,
Inc., is the transfer and dividend disbursing agent.
Each Trustee who is not affiliated with the Advisor receives an annual fee of
$20,500 plus up to $1,500 for each Board and Committee meeting attended.
Trustee's fees are allocated to each of the funds served.
Note C - Investment Activity
During the year, purchases and sales of investments, other than short-term
securities, were $1,224,821,211 and $1,218,341,325, respectively.
The cost of investments owned at September 30, 1998 was substantially the same
for federal income tax and financial reporting purposes. Net unrealized
appreciation aggregated $103,671, of which $906,941 related to appreciated
securities and $803,270 related to depreciated securities.
Note D - Line of Credit
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 $2,385,994
outstanding borrowings at an interest rate of 6.25% at September 30, 1998.
Tax Information (Unaudited)
The Fund designates $512,295 as capital gain dividends paid during fiscal year
ended September 30, 1998. Of the amount designated, 88.8% is taxable at 28%
and 11.2% is taxable at 20%.
<PAGE>
Financial Highlights
Years Ended
September 30, September 30, September 30,
Class A Shares 1998 1997 1996
Net asset value, beginning $17.20 $16.47 $16.82
Income from investment
operations
Net investment income 1.02 1.02 1.01
Net realized and unrealized
gain (loss) .61 .74 (.32)
Total from investment
operations 1.63 1.76 .69
Distributions from
Net investment income (1.01) (1.02) (1.01)
Net realized gain (.65) (.01) -
In excess of net realized gain - - (.03)
Total distributions (1.66) (1.03) (1.04)
Total increase (decrease) in net
asset value (.03) .73 (.35)
Net asset value, ending $17.17 $17.20 $16.47
Total return* 9.92% 11.03% 4.21%
Ratios to average net assets:
Net investment income 5.96% 6.04% 6.02%
Total expenses+ 1.43% 1.33% 1.26%
Net expenses 1.36% 1.26% 1.23%
Portfolio turnover 3,461% 2,961% 153%
Net assets, ending
(in thousands) $41,607 $39,302 $44,431
Number of shares outstanding,
ending (in thousands) 2,423 2,285 2,698
Years Ended
September 30, September 30,
Class A Shares 1995 1994
Net asset value, beginning $15.68 $18.41
Income from investment operations
Net investment income 1.11 1.16
Net realized and unrealized gain (loss) 1.14 (2.42)
Total from investment operations 2.25 (1.26)
Distributions from
Net investment income (1.11) (1.16)
Net realized gain - (.31)
Total distributions (1.11) (1.47)
Total increase (decrease) in net asset value 1.14 (2.73)
Net asset value, ending $16.82 $15.68
Total return* 14.90% (6.94%)
Ratios to average net assets:
Net investment income 6.89% 6.86%
Total expenses+ 1.26% N/A
Net expenses 1.23% 1.07%
Portfolio turnover 135% 34%
Net assets, ending (in thousands) $42,637 $45,936
Number of shares outstanding,
ending (in thousands) 2,535 2,929
<PAGE>
Financial Highlights
Periods Ended
October 29, September 30,
Class C Shares 1996 1996
Net asset value, beginning $16.19 $16.56
Income from investment operations
Net investment income .01 .74
Net realized and unrealized gain (loss).31 (.42)
Total from investment operations .32 .32
Distributions from
Net investment income (.04) (.66)
In excess of net realized gain - (.03)
Total distributions (.04) (.69)
Total increase (decrease) in net
asset value .28 (.37)
Net asset value, ending $16.47 $16.19
Total return* 2.01% 1.96%
Ratios to average net assets:
Net investment income 3.65%(a) 3.96%
Total expenses+ 3.29%(a) 3.37%
Net expenses 3.26%(a) 3.34%
Expenses reimbursed .63%(a) -
Portfolio turnover 2% 153%
Net assets, ending (in thousands) $1,064 $1,379
Number of shares outstanding,
ending (in thousands) 65 85
Years Ended
September 30, September 30,
Class C Shares 1995 1994^
Net asset value, beginning $15.63 $17.35
Income from investment operations
Net investment income .81 .57
Net realized and unrealized gain (loss) 1.09 (1.67)
Total from investment operations 1.90 (1.10)
Distributions from
Net investment income (.97) (.62)
In excess of net realized gain - -
Total distributions (.97) (.62)
Total increase (decrease) in net asset value .93 (1.72)
Net asset value, ending $16.56 $15.63
Total return* 12.58% (5.47%)
Ratios to average net assets:
Net investment income 4.71% 5.62%(a)
Total expenses+ 3.37% N/A
Net expenses 3.34% 2.65%(a)
Expenses reimbursed .69% 7.29%(a)
Portfolio turnover 135% 34%
Net assets, ending (in thousands) $766 $413
Number of shares outstanding,
ending (in thousands) 46 26
(a) Annualized
* Total return is not annualized and does not reflect deduction of any
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
N/A Disclosure not applicable to prior periods.
