March 31, 1999
Semi-annual
Report
Calvert World Values
International Equity
Fund
<PAGE>
Calvert World Values International Equity 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
TDD for 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
330 West 9th Street
Kansas City, MO 64105
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
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 Balanced 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
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
<PAGE>
Table
of
Contents
President's Letter
1
Social Update
2
Portfolio
Manager Remarks
3
Statement
of Net Assets
7
Statement
of Operations
12
Statements
of Changes in
Net Assets
13
Notes to
Financial Statements
15
Financial Highlights
18
Shareholder Meeting Results
22
Y2K Update
23
Dear Shareholders:
The stock market appears to be on its way to a fifth straight year of 20%
plus returns. The pundits are running out of superlatives. The Dow Jones
Industrial Average produced a total return of 25.86%, closing in on a
record- breaking 10,000 level near the end of the March quarter. The NASDAQ
Composite index, supercharged by the technology sector, generated a total
return of 45.57% over the same six-month period.
The current economic environment for investors is exceedingly positive.
Interest rates and inflationary expectations are low and the US economy
remains in an expansion mode. The world's largest economy is now in its
fifth year of GDP growth in excess of 4%.
Among stocks, the top performers were tightly consolidated by capitalization
range and industry group. Large-capitalization companies and technology
plays fueled most of the advance. In the bond market, long-term US Treasury
securities outperformed other categories substantially.
While investors may be tempted to chase the current trend setters, that
approach comes with increased risk now, given the stock market's high levels
and increased volatility. We encourage investors to make decisions based on
their financial objectives and tolerance for risk. At this point, it would
be a good idea to reevaluate your asset allocation to be sure you are
positioned at a comfortable risk level. If you think change is in order,
your financial professional can suggest strategies that keep you on track to
meet long-term financial objectives without exposing you to undue levels of
risk.
We appreciate your investment in Calvert Group funds and look forward to
providing competitive returns in the months ahead.
Sincerely,
/s/
Barbara J. Krumsiek
President and CEO
April 28, 1999
<PAGE>
Social
Update
Calvert Redesigns Its Web Site
Calvert Group unveiled its newly redesigned Web site. The redesigned Web
site uses leading edge technology to make information easily accessible to
investment professionals, individual investors and institutional investors.
Some of the key features include information such as performance, profiles,
literature, and audio manager updates. Performance and account information
are updated daily. We have several tools designed to educate the investor,
including our "Know What You Own(r)" service which allows individuals to
find out the stocks held by their mutual funds. We also offer a section
explaining climate change and supplier standards that explains how people
can make an impact on companies through proxy voting and the shareholder
resolution process. Comprehensive information is also available on socially
responsible and tax-free investing. Our mutual fund basics section offers an
array of tools to help individuals make important decisions regarding their
financial future. Please visit us at www.calvertgroup.com and learn more
about how Calvert Group can meet your needs.
High Social Impact Investments
High Social Impact Investments make targeted, direct investments in the
lives of people and their communities. It's helping people like Merlinda. As
a child Merlinda's father told her, "If there's something you want, learn to
make it." So she did. When financial crisis struck, Merlinda took her
grandmother's chili recipe and began cooking. A loan of $500 from ACCION New
Mexico allowed her to can her salsa as well, doubling her sales. Merlinda
says, "that $500 was worth a million." ACCION helps microentrepreneurs start
and grow their businesses in the United States and Latin America. Calvert
has been supporting ACCION to reach out to new entrepreneurs since 1991.
<PAGE>
[photo] Andrew Preston
of Murray Johnstone International
What were the key factors in the performance of the international markets
during the past six months?
The period from October 1998 saw buoyant returns in the international
markets as they recovered from the depths of the crisis precipitated by the
collapse of the emerging markets, at its worst in September. Although the
Latin American region did not turn around until February 1999, the
underlying strength of the US economy and the support this provided to Wall
Street were key factors in the performance of the international markets.
Some of these produced excellent returns over the six months, e.g.; Hong
Kong, 39.4%; Japan, 42.4%; and Singapore, 54.7%.
So how did the Fund perform against its benchmark?
The portfolio return for the period was 20.13%, slightly behind the MSCI
EAFE Index figure of 22.51%.
Tell us more about your strategy during this period.
The key decision on strategy for the period was to reinvest in the markets
of the Far East, which we did in late September. We believed that the
currencies had stabilised, the current accounts had begun to turn around and
that interest rates globally were likely to enter a downward trend. Indeed,
interest rates were cut in late September and again, later. To finance
investments in Asia we sold assets in Europe. This was also the correct
decision since the European markets have underperformed Asia during the last
six months. The other change to strategy implemented during the period was
to build up the portfolio's assets in Japan. Again, this proved to be timely
since the Japanese currency surged during the three months to December and
the market was one of the strongest globally in the first quarter of 1999.
Where do you think Japan will go from here?
Growth in Japan in 1999 will remain poor: consumption is anemic as workers
continue to fear that they will be "downsized" and postpone spending while
the scope for additional public works projects is dwindling as the
government's ability to finance them suffers from the burgeoning budget
deficit. On the positive side, however, the banking system has been
successfully refinanced and, with the mergers currently underway, is moving
to a much firmer footing. Foreign participation in the financial sector will
add to its stability. Secondly, and perhaps more importantly, Japanese
corporations, in increasing numbers, are announcing plans to radically
overhaul and refocus their operations in an attempt to return to
profitability. This is the most important change we have seen in recent
months. If the plans are carried through, it will mark a new beginning in
growth and profitability for the economy. The market has begun to anticipate
this and factor it into equity prices.
What about Europe?
Within Europe, the introduction of the Euro, the single currency for the
eleven participating countries, has been achieved with remarkable success.
Corporations have benefited from commission-free cross border transactions
as well as the predictability of their future revenue stream. The single
currency has also introduced a new level of transparency to corporate
accounts, highlighting the efficient and the less efficient suppliers of
goods and services. This information has stimulated a steady increase in the
level of take-over activity in the region and should, in due course, lead to
improved productivity. The other expectation was that the Euro would become
a new reserve currency. Although there was talk that some governments would
begin to accumulate the Euro as part of their foreign currency reserves,
this trend has not developed. Contrary to expectations, the Euro has
weakened by 8.0% since its launch. This has occurred for several reasons:
lower growth in Euroland versus the dollar region (the US), internal
disputes over finance policy in Germany and ultimately, the mass resignation
of European commissioners under accusations of misconduct. Following the
rate cut in early April, however, there is a belief that the groundwork has
been laid for a revival of growth in the region and a firmer Euro in the
months ahead.
Have markets effectively measured the effects of the Y2K problem?
As the year progresses, we will be conducting research into specific markets
with a view to determining whether systems and processes on a macro scale
are robust enough to withstand the change to the new millennium. The
conclusions of this research will be factored into our investment strategy
in the third and fourth quarter of the year. For several months now, each
time investment analysts from Murray Johnstone have met with the management
of companies in which the Fund is invested, they have asked a series of
questions designed to assess the company's approach to the Y2K problem and
its progress in achieving compliance. We confirm that company management has
systems in place to take them through the millennium and that the company
has tested those systems. If we have any doubts as to the dedication of
companies to the issue, we will monitor their progress and if we remain
unconvinced, we may dispose of the investment.
How have markets resolved the emerging market problems of the last year and
a half?
The other issue has been the approach of investors to the emerging markets
in recent months and their apparent confidence that the difficulties of the
last year and a half have been overcome. Over the period we are reviewing
the conclusion to this question must surely be that investors have taken an
optimistic approach, although it has taken some time for this consensus to
develop. The evidence for this lies in the rapid recovery of the Asian
markets in particular since they hit their lows in September last year. We
have also seen strong markets in Latin America, especially Brazil and
Mexico, once investors were comfortable that the economies had turned the
corner. Looking forward, with an improvement in sentiment towards the sector
and a stable global interest rate background, we see scope for further
progress in these markets.
What is your market outlook for the remainder of 1999?
The key features for the remainder of 1999 will be the rate of growth in the
US and, as a consequence, the Federal Reserve (the Fed) policy on interest
rates; whether growth in Europe begins to pick up; and whether Japan can
indeed return to a growth path. At their recent meeting, the Fed governors
left interest rates unchanged, apparently in the knowledge that growth so
far in 1999 was not proceeding at the same pace as growth in late 1998. Our
own view is that growth in the US will indeed slow through this year as a
result of rising imports and that this will allow the Fed to leave rates as
they currently stand. This will be important for Europe where slower growth
has already led to lower rates. With the combination of progress from the
government and restructuring from corporations in Japan, we believe the
economy can improve and that a pick up in corporate profits will result,
even though domestic sales to unwind cross-holdings will continue. Finally,
with stability in the US and a continuation of low interest rates, we
believe that the outlook for the emerging markets will continue to improve
through the coming months.
April 28, 1999
International Equity Fund Portfolio Statistics
March 31, 1999
Investment Performance
6 Months 12 Months
ended ended
3/31/99 3/31/99
Class A 20.13% 2.19%
Class B 19.42% 1.09%
Class C 19.45% 1.13%
Class I N/A N/A
MSCI EAFE
Index GD 22.51% 6.37%
Lipper International
Funds Average 18.22% 0.02%
Ten Largest Stock Holdings
% of Assets
VNU 2.51%
Telecom Italia Mobile 2.42%
Zurich Allied 2.37%
BK of Scotland 2.25%
Unicredito Italian 2.13%
Cap Gemini 2.05%
Pearson 1.99%
National Australia Bank 1.98%
Allianz AG 1.97%
Elsevier NV 1.94%
Total 21.61%
Asset Allocation
Stocks 91%
Bonds 2%
Cash & Cash Equivalents 7%
100%
Investment performance does not reflect the deduction of any front-end or
deferred sales charge.
GD represents gross dividends.
Source: Lipper Analytical Services, Inc.
Portfolio Statistics
March 31, 1999
Average Annual Total Returns
Class A Shares
as of 3/31/99
One year (2.67%)
Five year 7.52%
Since inception 8.81%
(7/2/92)
Class B Shares
as of 3/31/99
One year (3.91%)
Since inception (3.91%)
(4/1/98)
Class C Shares
as of 3/31/99
One year 1.13%
Five Year 7.43%
Since inception 6.71%
(3/1/94)
Class I Shares
as of 3/31/99
Since inception N/A
(3/1/99)
Performance Comparison
Comparison of change in value of $10,000
investment. (Source:Lipper Analytical Services, Inc.)
[LINE GRAPH HERE]
Calvert World Values Int'l Equity Fund $17,965
MSCI EAFE Index $21,305
Lipper International Funds Index $20,673
Total returns assume reinvestment of dividends and reflect the deduction of
the Fund's maximum front-end or deferred sales charge. No sales charge has
been applied to the index used for comparison. The value of an investment in
Class A shares is plotted in the line graph. The value of an investment in
another Class of shares would be different. Past performance is no guarantee
of future results.
Portfolio Statistics
Country Allocation
% of Equity Securities
3/31/99 9/30/98
Argentina 1.6% 1.4%
Australia 2.1% -
Belgium - 3.6%
Brazil 1.3% 1.1%
Chile 1.6% 1.5%
Denmark 1.1% -
Costa Rica - .1%
Finland - -
France 10.3% 11.7%
Germany 7.7% 10.3%
Hong Kong 1.1% 2.2%
Ireland 2.6% 1.9%
Italy 5.7% 4.7%
Japan 23.1% 15.0%
Mexico 1.3% 1.1%
Netherlands 9.1% 9.0%
New Zealand 1.6% 2.4%
Norway 2.0% 2.4%
Singapore 1.2% 2.5%
South Africa 0.8% .9%
Spain 2.1% 3.9%
Switzerland 2.5% 3.4%
U.K. 20.7% 19.7%
U.S. 0.5% 1.2%
100% 100%
Top Five Economic Sectors
% of Equity Holdings
Banks 22.03%
Business Services 13.98%
Consumer Services 10.86%
Financial Services 10.13%
Technology 8.13%
Portfolio Statistics
March 31, 1999
Portfolio Characteristics
International MSCI
Equity EAFE
Fund Index
Number of Stocks 79 1,027
Median Market
Capitalization ($bil) 11.89 N/A
(by portfolio weight)
Price/Earnings
Ratio 25.27 29.12
Yield 1.88% 1.96%
(return on capital investment)
Volatility Measure
International MSCI
Equity EAFE
Fund index
Beta1 1.07 1.04
1Measure of volatility compared to the S&P 500 Stock Index (S&P 500) beta of
1. The higher the beta, the higher the risk and potential reward.
Source: Vestek, Inc.
<PAGE>
STATEMENT OF NET ASSETS
March 31, 1999
Equity Securities - 93.2% Shares Value
Argentina - 1.5%
Banco Frances del Rio la Plat (ADR) 200,000 $3,550,000
Australia - 2.0%
National Australia Bank 257,000 4,669,278
Brazil - 1.2%
Unibanco (GDR) 150,000 2,887,500
Chile - 1.5%
Compania de Telecomunicaciones de Chile (ADR) 150,000 3,534,375
Costa Rica - 0.1%
Pro Fund International + 1,910 1,910
Pro Fund International (Preferred) + 189,038 189,038
190,948
Denmark - 1.0%
Novo-Nordisk As B 21,555 2,413,317
France - 9.6%
AXA UAP 23,042 3,059,457
Banque National de Paris 47,572 4,145,838
Cap Gemini 28,814 4,832,159
Equant 25,316 1,905,029
Legrand 8,888 1,869,173
Pinault-Printemps 15,000 2,397,130
Sita 2,743 619,866
Vivendi 15,644 3,854,943
22,683,595
Germany - 7.2%
Allianz 15,266 4,654,792
Douglas Holdings AG 58,858 2,504,241
Linde 5,450 3,117,296
Mannesmann 22,917 2,931,355
SAP 5,300 1,521,480
Volkswagen 32,474 2,166,441
16,895,605
Hong Kong - 1.0%
Hutchison Whampoa 298,000 2,345,670
Ireland - 2.4%
Allied Irish Banks 177,307 3,057,279
Global Telesystems Group, Inc. 46,250 2,587,109
5,644,388
<PAGE>
Equity Securities - (Cont'd) Shares Value
Italy - 5.3%
Credito Italiano 928,086 $5,017,462
Telecom Italia Di Rish 291,433 1,733,115
T.I.M 846,491 5,702,119
12,452,696
Japan - 21.5%
Canon Sales 1,000 15,665
Fuji Machine Manufacturing 103,000 3,696,744
Fuji Photo Film 88,000 3,329,308
Fujitsu 223,000 3,581,860
Matsushita Comm 55,000 3,720,390
Meitec Corporation 119,000 3,467,044
Nippon Comsys 256,000 3,588,735
NTT 355 3,477,600
Olympus Optical Co. 284,000 3,741,418
Secom Co. 34,000 3,221,551
Sharp Corporation 342,000 3,610,184
Snow Brand Milk* 315,000 1,729,088
Sony Corp. 36,500 3,375,206
Sumitomo Bank 245,000 3,316,598
Tokyo Steel Manufacturing 358,000 1,717,215
Yamanouchi Pharmaceuticals 102,000 3,230,165
York Benimaru Co. 59,800 1,868,514
50,687,285
Mexico - 1.2%
Banpais (de-listed) (ADR)* 100,000 0
Cifra (ADR)* 100,000 1,547,340
Grupo Industrial Durango (ADS)* 177,000 1,371,750
2,919,090
Netherlands - 8.5%
Elsevier 306,319 4,570,660
ING Groep 77,684 4,287,985
Koninklijke KPN 76,336 3,041,535
Utd Pan-Europe Communicat 58,171 2,283,174
VNU 152,050 5,934,983
20,118,337
New Zealand - 1.5%
Telecom Corporation of New Zealand 720,000 3,512,039
Norway - 1.8%
Christiania Bank 1,109,717 4,339,435
Singapore - 1.1%
City Developments 287,000 1,496,090
Singapore Press 94,000 1,039,907
2,535,997
<PAGE>
Equity Securities - (Cont'd) Shares Value
South Africa - 0.7%
Community Growth Fund + 785,359 $268,790
Liberty Life Association 66,000 821,553
Standard Bank Investment 200,000 568,021
1,658,364
Spain - 2.0%
Argentaria 152,203 3,663,315
Superdiplo 42,789 1,019,231
4,682,546
Switzerland - 2.4%
Zurich Allied* 8,709 5,586,009
United Kingdom - 19.2%
Abbey National* 200,000 4,136,348
Anglian Group 380,000 1,730,098
Anglian Water 146,720 1,800,283
Bank of Scotland 400,000 5,318,161
Barclays 106,400 3,064,604
Beazer Group 300,000 913,000
Bellway 150,000 796,756
British Telecom 220,000 3,580,314
Cadbury Schweppes 150,000 2,155,357
Firstgroup PLC 150,000 989,285
Johnson Matthey 211,000 1,590,879
Kingfisher 45,000 565,963
London International Group 297,400 749,037
Mayflower Corp. 509,200 1,446,902
Norwich Union 299,600 2,061,789
Pearson 205,000 4,693,189
Railtrack Group 100,000 2,286,131
SIG 117,513 294,073
Smithkline Beecham 246,700 3,562,767
Somerfield 258,300 1,324,055
Vodafone Group 115,000 2,135,176
Quadrant Healthcare * 200,000 245,404
45,439,571
United States - 0.5%
Calypte Biomedical Series E (Preferred) +* 50,000 137,500
Northern Power Systems +* 160,000 200,000
Proton Energy Systems, Series A +* 227,273 454,546
Proton Energy Systems, Series B +* 45,137 90,274
Proton Energy Systems, Warrants Exp 8/26/03 +* 15,046 0
Soluz, Inc. +* 4,000 40,000
Terra Capital +* 18,500 18,500
Zero Emissions Tech, Inc. (Preferred) +* 90,909 250,000
1,190,820
Total Equity Securities (Cost $187,139,421) 219,936,865
<PAGE>
Principal
Corporate Notes - 1.6% Amount Value
Bolivia - 0.0%
Banco Solidario $50,000 $49,695
United States - 1.6%
Accion International 100,000 98,443
Cascadia Revolving Loan Fund 200,000 190,492
Catholic Relief Services 250,000 243,100
Ecumenical Development Corporation USA 150,000 142,934
Enterprise Loan Fund 100,000 95,903
Ethiopian Community Development Council 125,000 122,975
Federation of Appalachian Housing Enterprises 200,000 192,512
Foundation For International Community
Assistance 150,000 141,498
Freedom From Hunger 100,000 98,701
Greater New Haven Community Loan Fund 75,000 73,103
Impact Seven 300,000 292,410
Mayer Laboratories, Inc. 150,000 150,000
Mcauley Institute 85,000 81,818
Mennonite Economic Development Association 200,000 194,480
Minnesota Non-Profit Assistance Fund 100,000 94,677
New Mexico Community Loan Fund 200,000 197,512
Program for Appropriate Technology and Health 300,000 284,367
Rural Community Assistance Co. 200,000 196,474
Self Help Credit Union 200,000 199,162
Shared Interest 100,000 98,327
Societe D'Investissement et de Developpement
International 250,000 246,620
Soluz Dominicana, Inc. 150,000 110,000
South Shore Bank 200,000 199,129
3,744,637
Total Corporate Notes (Cost $3,895,000) + 3,794,332
Time Deposits - 2.1%
Capital Markets, London, 4.625%, 4/1/99 5,002,414
Total Time Deposits (Cost $5,002,414) 5,002,414
TOTAL INVESTMENTS (Cost $196,036,835) - 96.9% 228,733,611
Other assets in excess of liabilities, net - 3.1% 7,348,295
Net Assets - 100% $236,081,906
<PAGE>
Net Assets Consist of: Value
Paid-in capital applicable to the following shares of common stock with
250,000,000 shares of $0.01 par value share authorized for Class
A, B and C combined:
Class A : 10,758,202 shares outstanding $179,541,014
Class B : 99,599 shares outstanding 2,084,071
Class C : 479,055 shares outstanding 8,616,909
Class I : 132,735 shares outstanding 2,618,452
Undistributed net investment income (loss) (546,540)
Accumulated net realized gain (loss) on investments
and foreign currencies 10,993,600
Net unrealized appreciation (depreciation) on investments
and assets and liabilities in foreign currencies 32,774,400
Net Assets $236,081,906
Net Asset Value Per Share
Class A (based on net assets of $221,866,423) $20.62
Class B (based on net assets of $2,037,335) $20.46
Class C (based on net assets of $9,438,015) $19.70
Class I (based on net assets of $2,740,133) $20.64
+ Restricted securities represent 2.3% of net assets.
* Non-income producing
See notes to financial statements.
<PAGE>
Statement of Operations
six months Ended March 31, 1999
Net Investment Income
Investment Income
Dividend income (net of foreign taxes of $153,475) $1,428,932
Interest income 226,600
Total investment income 1,655,532
Expenses
Investment advisory fee 1,087,840
Transfer agency fees and expenses 287,247
Distribution Plan expenses:
Class A 270,611
Class B 7,474
Class C 45,556
Directors' fees and expenses 52,358
Administrative fees 163,224
Custodian fees 198,703
Registration fees 28,949
Reports to shareholders 54,870
Professional fees 15,920
Miscellaneous 27,883
Total expenses 2,240,635
Reimbursement from Advisor:
Class A (3,455)
Class B (8,545)
Class C (146)
Class I (1,103)
Fees paid indirectly (40,238)
Net expenses 2,187,148
Net Investment Income (Loss) (531,616)
Realized and Unrealized Gain (Loss) on Investments
Net realized gain (loss) on:
Investments 14,192,608
Foreign currency transactions (395,280)
13,797,328
Change in unrealized appreciation or (depreciation) on:
Investments and foreign securities 27,624,785
Assets and liabilities denominated in foreign currencies 140,266
27,765,051
Net Realized and Unrealized Gain
(Loss) 41,562,379
Increase (Decrease) in Net Assets
Resulting From Operations $41,030,763
See notes to financial statements.
<PAGE>
Statements of Changes in Net Assets
Six Months Ended Year Ended
March 31, September 30,
Increase (Decrease) in Net Assets 1999 1998
Operations
Net investment income (loss) ($531,616) $526,794
Net realized gain (loss) 13,797,328 20,329,139
Change in unrealized appreciation or
(depreciation) 27,765,051 (41,280,914)
Increase (Decrease) in Net Assets
Resulting From Operations 41,030,763 (20,424,981)
Distributions to shareholders from
Net investment income:
Class A Shares (737,027) (561,623)
Class B Shares - -
Class C Shares - (98)
Net realized gain:
Class A Shares (16,211,624) (13,935,050)
Class B Shares (110,135) -
Class C Shares (710,923) (566,765)
Total distributions (17,769,709) (15,063,536)
Capital share transactions:
Shares sold:
Class A Shares 50,598,153 74,805,451
Class B Shares 1,024,976 1,055,551
Class C Shares 903,913 2,186,794
Class I Shares 2,627,062 -
Reinvestment of distributions:
Class A Shares 15,531,990 13,185,790
Class B Shares 97,140 -
Class C Shares 671,801 536,723
Shares redeemed:
Class A Shares (61,641,200) (84,138,384)
Class B Shares (66,994) (26,602)
Class C Shares (1,031,355) (1,970,101)
Class I Shares (8,610) -
Total capital share transactions 8,706,876 5,635,222
Total Increase (Decrease) in Net Assets 31,967,930 (29,853,295)
Net Assets
Beginning of period 204,113,976 233,967,271
End of period (including undistributed net
investment income (loss) of ($546,540)
and $722,103, respectively) $236,081,906 $204,113,976
See notes to financial statements.
<PAGE>
Six Months Ended Year Ended
March 31, September 30,
Capital Share Activity 1999 1998
Shares sold:
Class A Shares 2,507,203 3,550,511
Class B Shares 50,395 48,885
Class C Shares 46,606 108,077
Class I Shares 133,161 -
Reinvestment of distributions:
Class A Shares 777,314 712,725
Class B Shares 4,884 -
Class C Shares 35,099 29,985
Shares redeemed:
Class A Shares (3,036,013) (3,960,103)
Class B Shares (3,268) (1,297)
Class C Shares (53,773) (98,379)
Class I Shares (426) -
Total capital share activity 461,182 390,404
See notes to financial statements.
Notes to Financial Statements
Note A - Significant Accounting Policies
General: The Calvert World Values International Equity Fund (the "Fund"), a
series of Calvert World Values Fund, Inc., is registered under the
Investment Company Act of 1940 as a non-diversified, open-end management
investment company. The operation of each series are accounted for
separately. The Fund offers four classes of shares of capital stock. Class A
shares are sold with a maximum front-end sales charge of 4.75%. Class B
shares are sold without a front-end sales charge. With certain exceptions,
the Fund will impose a deferred sales charge at the time of redemption,
depending on how long you have owned the shares. Class C shares are sold
without a front-end sales charge. With certain exceptions, the Fund will
impose a deferred sales charge on shares sold within one year. Class B and
Class C shares have higher level of expenses than Class A shares. Effective
March 1, 1999, the Fund began to offer Class I shares of capital stock.
Class I shares require a minimum account balance of $1,000,000. Class I
shares have no front-end or deferred sales charge. Each class has different:
(a) dividend rates, due to difference 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 not available are valued
at the most recent bid price or based on a yield equivalent obtained from
the securities' market maker. Foreign security prices, furnished by
quotation services in the security's local currency, are translated using
the current U.S. dollar exchange rate. The Fund may invest in securities
whose resale is subject to restrictions. Investments for which market
quotations are not available or deemed inappropriate are valued in good
faith under the direction of the Board of Directors.
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 from the values that would have been used had a ready
market of the investments existed, and the differences could be material.
At March 31, 1999, $5,176,100, or 2.2% of net assets, were valued by the
Board
of Directors.
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.
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.
Foreign Currency Transactions: The Fund's accounting records are maintained
in U. S.
<PAGE>
dollars. For valuation of assets and liabilities on each date of net asset
value determination, foreign denominations are converted into U.S. dollars
using the current exchange rate. Security transactions, income and expenses
are translated at the prevailing rate of exchange on the date of the event.
The effect of changes in foreign exchange rates on securities is included in
the net realized and unrealized gain or loss on securities.
Distributions to Shareholders: Distributions to shareholders are recorded by
the Fund on ex-dividend date. Dividends from net investment income 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 the financial statements in conformity with
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amount of assets and
liabilities and disclosure of contingent assets and liabilities at the date
of the financial statements and the reported amounts of income and expenses
during the reported period. Actual results could differ from those estimates.
Expense Offset Arrangement: The Fund has an arrangement with its custodian
bank whereby the custodian's and transfer agent's fees may be paid
indirectly by credits earned on the Fund's cash on deposit with the bank.
Such a 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
Ameritas Acacia Mutual Holding Company. The Advisor provides investment
advisory services and pays the salaries and fees of officers and affiliated
Directors of the Fund. For its services, the Advisor receives a monthly fee
based on the following annual rates of average daily net assets:
First Next Over
$250 Million $250 Million $500 Million
10/1/98 - 2/28/99 1.0% .975% .925%
3/1/99 .75% .725% .675%
Effective March 1, 1999, the fees paid to the Advisor changed as reflected
above. Under the terms of the agreement, $276,892 was payable at period end.
Calvert Distributors, Inc., an affiliate of the Advisor, is the distributor
and principal underwriter for the Fund. Distribution Plans, adopted by Class
A, Class B and Class C shares, allow the Fund to pay the distributor for
expenses and services associated with distribution of shares. The expenses
paid may not exceed .35%, 1.0% and 1.0% annually of average daily net assets
of each Class A, Class B and Class C shares, respectively. Class I shares
does not have Distribution Plan expenses. Under the terms of the agreement,
$56,533 was payable at period end.
<PAGE>
The Distributor received $40,492 as its portion of commissions charged on
sales of the Fund's shares.
Calvert Shareholder Services, Inc. (CSSI), an affiliate of the Advisor, is
the shareholder servicing agent for the Fund. For its services, CSSI
received a fee of $79,838 for the six months ended March 31, 1999. Under the
terms of the agreement, $13,010 was payable at period end. National
Financial Data Services, Inc., is the transfer and dividend disbursing agent.
Calvert Administrative Services Company Inc., an affiliate of the Advisor,
provides administrative services to the Fund for an annual fee, payable
monthly, of the greater of $40,000 or .10% of the average daily net assets
of the Fund through February 28, 1999. Effective March 1, 1999, Class A,
Class B and Class C shares pay an annual rate of .35% and Class I shares pay
an annual rate of .15%, based on their average daily net assets. Under the
term of the agreement, $55,596 was payable at period end.
Each Director who is not affiliated with the Advisor receives an annual fee
of $4,000 plus $1,000 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. Director's 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 $74,149,123 and $82,722,853, respectively.
The cost of investments owned at March 31, 1999 was substantially the same
for federal income tax and financial reporting purposes. Net unrealized
appreciation aggregated $32,696,776, of which $48,740,070 related to
appreciated securities and $16,043,294 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. The Fund had no loans outstanding pursuant to this line
of credit at March 31, 1999.
<PAGE>
Financial Highlights
Periods Ended
March 31, September 30, September 30,
Class A Shares 1999 1998 1997
Net asset value, beginning $18.57 $22.06 $18.62
Income from investment operations
Net investment income (.04) (.06) .10
Net realized and unrealized
gain (loss) 3.73 (2.11) 3.81
Total from investment
operations 3.69 (2.05) 3.91
Distributions from
Net investment income (.07) (.06) (.05)
Net realized gain (loss) (1.57) (1.38) (.42)
Total distributions (1.64) (1.44) (.47)
Total increase (decrease) in net
asset value 2.05 (3.49) 3.44
Net asset value, ending $20.62 $18.57 $22.06
Total return* 20.13% (9.29%) 21.44%
Ratios to average net assets:
Net investment income (loss)(.42%) (a) .27% .51%
Total expenses+ 1.91% (a) 1.86% 1.91%
Net expenses 1.88% (a) 1.80% 1.76%
Expenses reimbursed - - -
Portfolio turnover 34% 84%
58%
Net assets, ending (in thousands)$221,866 $195,192 $225,169
Number of shares outstanding,
ending (in thousands) 10,758 10,510 10,207
Years Ended September 30,
Class A Shares 1996 1995 1994
Net asset value, beginning $17.62 $17.99 $16.35
Income from investment operations
Net investment income .04 .11 -
Net realized and unrealized
gain (loss) 1.53 .38 2.14
Total from investment
operations 1.57 .49 2.14
Distributions from
Net investment income (.13) - (.03)
Excess of net investment income - - (.04)
Net realized gains (.44) (.86) (.43)
Total distributions (.57) (.86) (.50)
Total increase (decrease) in net
asset value 1.00 (.37) 1.64
Net asset value, ending $18.62 $17.62 $17.99
Total return* 9.22% 3.19% 13.44%
Ratios to average net assets:
Net investment income (loss) .23% .68% (.04%)
Total expenses+ 1.95% 1.93% N/A
Net expenses 1.81% 1.79% 1.96%
Expenses reimbursed - - .04%
Portfolio turnover 96% 73%
78%
Net assets, ending (in thousands)$194,032 $191,586 $175,543
Number of shares outstanding,
ending (in thousands) 10,422 10,876 9,755
Financial Highlights
Periods Ended September 30,
Class B Shares 1999 1998^^
Net asset value, beginning $18.48 $21.83
Income from investment operations
Net investment income (.11) (.05)
Net realized and unrealized gain (loss) 3.65 (3.30)
Total from investment operations 3.54 (3.35)
Distributions from
Net realized gains (1.56) -
Total distributions (1.56) -
Total increase (decrease) in net asset value 1.98 (3.35)
Net asset value, ending $20.46 $18.48
Total return* 19.42% (15.35%)
Ratios to average net assets:
Net investment income (loss) (1.67%) (a) (.99%)(a)
Total expenses+ 3.20% (a) 3.22%(a)
Net expenses 3.16% (a) 3.16%(a)
Expenses reimbursed 1.14% (a) 2.89%(a)
Portfolio turnover 34%
84%
Net assets, ending (in thousands). $2,037 $879
Number of shares outstanding,
ending (in thousands) 100 48
<PAGE>
Financial Highlights
Periods Ended
March 31, September 30, September 30,
Class C Shares 1999 1998 1997
Net asset value, beginning $17.83 $21.39 $18.20
Income from investment operations
Net investment income (.11) (.13) (.07)
Net realized and unrealized
gain (loss) 3.54 (2.05) 3.68
Total from investment
operations 3.43 (2.18) 3.61
Distributions from
Net realized gain (loss) (1.56) (1.38) (.42)
Total distributions (1.56) (1.38) (.47)
Total increase (decrease) in net
asset value 1.87 (3.56) 3.19
Net asset value, ending $19.70 $17.83 $21.39
Total return* 19.51% (10.22%) 20.22%
Ratios to average net assets:
Net investment income
(loss) (1.40%)(a) (.79%) (.47%)
Total expenses+ 2.89%(a) 2.91% 2.91%
Net expenses 2.85%(a) 2.85% 2.76%
Expenses reimbursed - - -
Portfolio turnover 34% 84% 58%
Net assets, ending (in thousands) $9,438 $8,043 $8,799
Number of shares outstanding,
ending (in thousands) 479 451 411
Years Ended September 30,
Class C Shares 1996 1995 1994^
Net asset value, beginning $17.28 $17.86 $18.24
Income from investment operations
Net investment income (.15) (.05) (.06 )
Net realized and unrealized
gain (loss) 1.51 .32 (.32)
Total from investment
operations 1.36 .27 (.38)
Distributions from
Net realized gains (.44) (.85) -
Total distributions (.57) (.85) -
Total increase (decrease) in net
asset value .92 (.58) (.38)
Net asset value, ending $18.20 $17.28 $17.86
Total return* 8.07% 1.95% (1.27%)
Ratios to average net assets:
Net investment income (loss) (.88%) (.47%) (1.16%)(a)
Total expenses+ 3.08% 3.12% N/A
Net expenses 2.93% 2.99% 3.32%(a)
Expenses reimbursed - .13% .50%(a)
Portfolio turnover 96% 73% 78%
Net assets, ending (in thousands) $6,779 $6,061 $3,620
Number of shares outstanding,
ending (in thousands) 373 351 203
Financial Highlights
Period Ended
March 31,
Class I Shares 1999#
Net asset value, beginning $19.91
Income from investment operations
Net investment income .02
Net realized and unrealized gain (loss) .71
Total from investment operations .73
Total increase (decrease) in net asset value .73
Net asset value, ending $20.64
Total return* 3.67%
Ratios to average net assets:
Net investment income (loss) 1.07% (a)
Total expenses+ 1.08% (a)
Net expenses 1.05% (a)
Expenses reimbursed .49% (a)
Portfolio turnover 34%
Net assets, ending (in thousands) $2,740
Number of shares outstanding,
ending (in thousands) 133
(a) Annualized
* Total return is not annualized for periods less than one year and does not
reflect deduction of any front-end or deferred 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. Total expenses are presented net of expense waivers
and reimbursements.
^ From March 1, 1994 inception.
^^ From April 1, 1998 inception.
N/A Disclosure not applicable to prior periods.
# From March 1, 1999 inception.
<PAGE>
A special meeting of shareholders was scheduled for February 24, 1999. There
were several proposals voted upon at the meeting. A brief description of
each proposal and the number of votes received for, against, and votes to
abstain is shown below. All proposals were passed.
Proposal 1 - To approve amended fundamental investment restrictions to: (a)
delete restrictions that are no longer required to be fundamental due to
changes in state laws or which otherwise need not be fundamental; and (b) to
revise the language of those restrictions that are still required to be
fundamental.
For Against Abstain Broker Non-Vote
4,021,806 93,575 524,181 933,203
Proposal 2 - To approve a new investment advisory agreement with the
investment advisor, Calvert Asset Management Company, Inc. ("CAMCO")(as
described in Note B to Financial Statements).
For Against Abstain
4,953,080 87,711 531,974
Proposal 6 - To authorize CWVF and/or CAMCO to enter into a new and/or
materially amend an existing investment subadvisory agreement with a
subadvisor in the future without having to first obtain shareholder approval.
For Against Abstain Broker Non-Vote
3,820,495 271,535 547,529 933,206
Proposal 9 - To ratify each Board's selection of auditors,
PricewaterhouseCoopers LLP.
For Against Abstain
4,982,207 25,632 481,616
Proposals 3 - 5 and 7 - 8 applied to other portfolios printed in the proxy;
therefore, no voting results are shown here.
<PAGE>
Calvert Group and the Year 2000
Plans and Progress
We are now less than a year away from the year 2000, a problematic date for
computer systems coded for two-character year format. Entered as "00," the
year 2000 would be processed as 1900, a mistake that could foul a variety of
date-sensitive transactions.
As your mutual fund sponsor, our goal is make sure there is no interruption
in the level of service you receive. In the summary below, we've outlined
the steps Calvert Group is taking to ensure our systems perform reliably.
Step One-Assess Systems and Software. Develop an Action Plan
In 1997, we identified all systems, operating platforms and software
potentially affected by the millennium bug. These included:
- Calvert Group systems-portfolio trading, sales contact and
reporting and internal management reporting
- transfer agency systems-shareholder record-keeping and
transaction processing
- subadvisor systems-investment accounting
- other third-party data and service systems.
We also formed a Y2K task force, led by Calvert's vice president of
technology. This group has identified and prioritized our efforts to achieve
year 2000 compliance.
Step Two-Test for Compliance. Repair Systems as Necessary.
Internal systems have been tested. We've made repairs and moved modified
code into production. These systems are now fully compliant. Transfer agency
systems were re-engineered for compliance in 1989. Recent tests indicate
these are, in fact, compliant. The readiness of third-party systems,
including subadvisor systems, has been evaluated. Based on information
received from these groups, we have found no significant obstacles to
compliance.
Step Three-Confirm Compliance. Finalize Contingency Plan.
Testing of transfer agency systems will continue through 1999 to ensure
these remain compliant and continue to interact correctly with external
systems and processes. The transfer agency has established a back-up site,
should main systems fail, and compliance testing of these contingency
measures are also underway. We are developing contingency plans to ensure
that any unforeseen systems failures will not adversely affect our
operations or inconvenience our shareholders.
For more information or to get an update on remediation and testing efforts,
please visit us online at www.calvertgroup.com.
<PAGE>
THIS PAGE INTENTIONALLY LEFT BLANK
<PAGE>
March 31, 1999
semi-annual
report
Calvert Capital
Accumulation Fund
<PAGE>
Calvert Capital
Accumulation
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
TDD for 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,
330 West 9th Street
Kansas City, MO 64105
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
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 Balanced 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
CSIF Managed Index Portfolio
CSIF Equity Portfolio
Capital Accumulation Fund
CWV International Equity Fund
New Vision Small Cap Fund
New Africa Fund
<PAGE>
Table
of
Contents
President's Letter
1
Social Update
2
Portfolio
Manager Remarks
3
Statement
of Net Assets
6
Statement
of Operations
10
Statements
of Changes in
Net Assets
11
Notes to
Financial Statements
13
Financial Highlights
16
Shareholder Meeting Results
20
Y2K Update
21
Dear Shareholders:
The stock market appears to be on its way to a fifth straight year of 20%
plus returns. The pundits are running out of superlatives. The Dow Jones
Industrial Average produced a total return of 25.86%, closing in on a
record-breaking 10,000 level near the end of the March quarter. The NASDAQ
Composite Index, supercharged by the technology sector, generated a total
return of 45.57% over the same six-month period.
The current economic environment for investors is exceedingly positive.
Interest rates and inflationary expectations are low and the US economy
remains in an expansion mode. The world's largest economy is now in its
fifth year of GDP growth in excess of 4%.
Among stocks, the top performers were tightly consolidated by capitalization
range and industry group. Large-capitalization companies and technology
plays fueled most of the advance. In the bond market, long-term US Treasury
securities outperformed other categories substantially.
While investors may be tempted to chase the current trend setters, that
approach comes with increased risk now, given the stock market's high levels
and increased volatility. We encourage investors to make decisions based on
their financial objectives and tolerance for risk. At this point, it would
be a good idea to reevaluate your asset allocation to be sure you are
positioned at a comfortable risk level. If you think change is in order,
your financial professional can suggest strategies that keep you on track to
meet long-term financial objectives without exposing you to undue levels of
risk.
We appreciate your investment in Calvert Group funds and look forward to
providing competitive returns in the months ahead.
Sincerely,
/s/
Barbara J. Krumsiek
President and CEO
April 28, 1999
<PAGE>
Social
Update
Calvert Redesigns Its Web Site
Calvert Group unveiled its newly redesigned Web site. The redesigned Web
site uses leading edge technology to make information easily accessible to
investment professionals, individual investors and institutional investors.
Some of the key features include information such as performance, profiles,
literature, and audio manager updates. Performance and account information
are updated daily. We have several tools designed to educate the investor,
including our "Know What You Own (r)" service which allows individuals to
find out the stocks held by their mutual funds. We also offer a section
explaining climate change and supplier standards that explains how people
can make an impact on companies through proxy voting and the shareholder
resolution process. Comprehensive information is also available on socially
responsible and tax-free investing. Our mutual fund basics section offers an
array of tools to help individuals make important decisions regarding their
financial future. Please visit us at www.calvertgroup.com and learn more
about how Calvert Group can meet your needs.
High Social Impact Investments
High Social Impact Investments make targeted, direct investments in the
lives of people and their communities. It's helping people like Merlinda. As
a child Merlinda's father told her, "If there's something you want, learn to
make it." So she did. When financial crisis struck, Merlinda took her
grandmother's chili recipe and began cooking. A loan of $500 from ACCION New
Mexico allowed her to can her salsa as well, doubling her sales. Merlinda,
says, "that $500 was worth a million." ACCION helps microentrepreneurs start
and grow their businesses in the United States and Latin America. Calvert
has been supporting ACCION to reach out to new entrepreneurs since 1991.
<PAGE>
Ed Brown
of Brown Capital Management Company
How did the Fund perform against its benchmark?
For the six-month period ended March 31, 1999, the S&P 500 turned in a total
return of 27.32%. The S&P 400 Midcap Index, the Fund's benchmark, was up
20.02%, and the Russell 2000 Index, a proxy for small company performance,
up 10.00%. During the past six months, the Calvert Capital Accumulation Fund
produced a total return of 21.57%, outperforming its benchmark by 155 basis
points.
How have different types of stocks or investment styles fared in the market
run up to Dow 10,000?
A handful of largely "big cap" stocks are doing exceptionally well. One of
the most significant developments of this bull market, is the exceptional
"narrowness of performance." In 1998 fewer than 10% of the companies in the
S&P 500 Index accounted for over 75% of the appreciation.
In our view the divergence of performance among the various types of stocks
is the result of exaggerated behavioral patterns by some investors and stock
traders. There is an element of excessive exuberance in response to
"surprisingly" good earnings momentum for the big, easy to own, companies
and excessive punishment for the slightest faltering by anybody else. Many
mid-size and smaller companies continue to post strong revenue and earnings
growth, which is met with total indifference at best. Meanwhile, the
darlings of Wall Street are the ".com" Internet related companies, with or
without earnings of any sort. The very same communications and information
processing technologies that have been important underpinnings of the
economic boom and investment climate have, in our judgment, contributed to
exaggerated market behavior. In today's wired world everyone seems to know
everything at the same time and tries to act as if no one else knows what he
or she knows. The result, all too often, is swift and exaggerated stock
price moves, up and down. It is not clear how these behavioral patterns will
be resolved. Traditionally, and we think appropriately, rational stock
prices are related to general characteristics of the investment environment
and specific factors related to individual companies.
What is the general outlook for equity markets?
Environmental factors remain quite positive. The strength, breadth and depth
of the US economy at this stage of the business cycle are extraordinary.
Employment, production, income and spending are robust. We are in the
longest peacetime economic expansion in US history. While uneven patterns in
other economies are tempering global expansion, they do help to keep
inflationary pressure in check. We see no evidence of an overheated economic
environment but are less than sanguine that a rational case can be made for
continuation of unprecedented investment returns. Our valuation discipline,
which allows for generally higher P/E ratios in periods of low interest
rates, indicates limited near-term appreciation potential for the market's
larger cap indices. A stronger case can be made for individual companies of
any size that maintain growth.
Our valuation discipline treats the five-year Treasury bond as the riskless
asset and assigns appropriate risk premiums to individual companies. The
other crucial variable in our model is the expected earnings growth rate.
Interest rates and risk premiums for many large companies are at
historically low levels and we do not think they would be key catalysts for
near-term price appreciation. Therefore the more important variable in the
current environment is expected earnings growth. In contrast, risk premiums
for midcap companies are at historically high levels and we think they are
likely to be key catalysts for price appreciation over both the short and
long term.
April 28, 1999
Capital Accumulation Fund Portfolio Statistics
March 31, 1999
Investment Performance
6 Months 12 Months
ended ended
3/31/99 3/31/99
Class A 21.57% 8.86%
Class B 20.87% 7.63%
Class C 21.11% 8.11%
Class I N/A N/A
S&P Midcap 400
Index TR 20.02% 0.45%
Lipper Mid-Cap
Funds Average 23.42% 0.24%
Ten Largest Stock Holdings
% of Net Assets
ADC Telecommunication 3.76%
Dollar General Corp. 3.35%
Catalina Marketing Corp. 3.31%
Newell Rubbermaid Inc. 3.31%
Kohls Corp. 2.89%
Paychex, Inc. 2.85%
T. Rowe Price & Assoc. 2.72%
Platinum Technology, Inc. 2.66%
SLM Holding Corp. 2.65%
Sterling Commerce, Inc. 2.63%
Total 30.13%
Asset Allocation
Stocks 96%
Cash or Cash Equivalents 4%
Total 100%
Investment performance does not reflect the deduction of any front-end or
deferred sales charge. TR represents total return.
Source: Lipper Analytical Services, Inc.
<PAGE>
Portfolio Statistics
March 31, 1999
Average Annual Total Returns
Class A Shares
One year 3.67%
Since inception 19.95%
(10/31/94)
Class B Shares
One year 2.63%
Since inception 2.63%
(4/1/98)
Class C Shares
One year 8.11%
Since inception 20.33%
(10/31/94)
Class I Shares
Since inception N/A
(3/1/99)
Performance Comparison
Comparison of change in value of $10,000
investment. (Source:Lipper Analytical Services, Inc.)
[LINE GRAPH HERE]
Total returns assume reinvestment of dividends and reflect the deduction of
the Fund's maximum front-end or deferred sales charge. No sales charge has
been applied to the Index used for comparison. The value of an investment in
Class A & C shares is plotted in the line graph. The value of an investment
in another class of shares would be different. Past performance is no
guarantee of
future results.
<PAGE>
Portfolio Statistics
March 31, 1999
Top Five Economic Sectors
% of Equity Holdings
Technology 28.67%
Business Equipment
and Services 21.30%
Health Care 17.43%
Financial Services 14.58%
Retail 6.62%
Portfolio Characteristics
Capital S&P
Accumulation Midcap 400
Fund Index
Number of Stocks 47 400
Median Market
Capitalization ($bil) 4.56 2.90
(by portfolio weight)
Price/Earnings
Ratio 34.72 24.39
Earnings Per Share
Growth 28.72% 23.52%
Yield 0.28% 1.23%
(return on capital investment)
Volatility Measures
Capital S&P
Accumulation Midcap 400
Fund Index
Beta1 1.19 1.01
R-Squared2 0.85 0.90
1Measure of volatility compared to the S&P 500 Stock Index (S&P 500) beta of
1. The higher the beta, the higher the risk and potential reward.
2Measure of correlation between the Fund's returns and the overall market's
(S&P 500) returns. An R-Squared of 0 would mean no correlation; an R-Squared
of 1 would mean total correlation.
Source: Vestek
<PAGE>
Statement of Net Assets
March 31, 1999
Equity Securities - 95.7% Shares Value
Communications Equipment - 3.8%
ADC Telecommunications, Inc. * 93,900 $4,477,856
Computer - Hardware - 1.6%
Network Associates, Inc. * 60,703 1,862,823
Computer - Networking - 2.1%
Northern Telecom, Ltd. 40,460 2,513,578
Computer - Peripherals - 1.9%
EMC Corp. * 17,878 2,283,915
2,283,915
Computer - Software and Services - 13.7%
BMC Software, Inc. * 69,800 2,586,962
Compuware Corp. * 98,200 2,344,525
Microsoft Corp. * 3,200 286,800
Parametric Technology Corp. * 111,300 2,198,175
Platinum Technology, Inc. * 124,200 3,167,100
Sterling Commerce, Inc. * 101,931 3,134,378
Sterling Software, Inc. * 107,200 2,546,000
16,263,940
Distributors - Food and Health - 1.9%
Cardinal Health, Inc. 34,725 2,291,850
Electrical Equipment - 3.0%
Sanmina Corp. * 19,300 1,230,375
Solectron Corp. * 47,600 2,311,575
3,541,950
Electronics - Semiconductors - 2.2%
Altera Corp. * 43,700 2,600,150
Financial - Diversified - 5.0%
Legg Mason, Inc. 83,000 2,796,062
SLM Holding Corp. 75,700 3,160,475
5,956,537
Health Care - Hospital Management - 2.4%
Health Management
Associates, Inc., Class A * 234,500 2,857,969
<PAGE>
Equity Securities - Cont'd Shares Value
Health Care - Products and Supplies - 6.7%
Biomet, Inc. 30,500 $1,279,094
Boston Scientific Corp. * 45,300 1,837,481
Omnicare, Inc. 131,200 2,501,000
St. Jude Medical, Inc. * 98,400 2,398,500
8,016,075
Health Care - Special Services - 5.6%
ALZA Corp. * 68,100 2,604,825
Covance, Inc. * 71,600 1,794,475
Quintiles Transnational Corp. * 60,900 2,298,975
6,698,275
Housewares - 3.3%
Newell Rubbermaid, Inc. 82,900 3,937,750
Insurance - Life and Health - 2.5%
AFLAC, Inc. 54,900 2,988,619
Investment Banking / Brokerage - 1.8%
Franklin Resources, Inc. 77,365 2,175,892
Investment Management - 2.7%
T. Rowe Price Associates, Inc. 94,400 3,245,000
Leisure - 1.9%
Harley Davidson, Inc. 39,400 2,265,500
Office Equipment and Supplies -1.2%
Staples, Inc. * 43,750 1,438,281
Oil and Gas - Equipment - 0.9%
Smith International, Inc. * 27,500 1,100,000
Retail - Building Supplies - 2.2%
Fastenal Co. 70,600 2,475,412
Home Depot, Inc. 1,800 112,050
2,587,462
Retail - Department Stores - 2.9%
Kohls Corp. * 48,600 3,444,525
Retail - Discounters - 3.4%
Dollar General Corp. 117,301 3,988,234
<PAGE>
Equity Securities - Cont'd Shares Value
Retail - Specialty - 0.9%
Autozone, Inc. * 33,900 $1,029,712
Services - Advertising and Marketing - 7.6%
Acxiom Corp. * 116,000 3,074,000
Catalina Marketing Corp. * 45,900 3,941,662
Sylvan Learning Systems, Inc. * 74,000 2,025,750
9,041,412
Services - Commercial and Consumer - 1.8%
G & K Services, Inc., Class A 47,400 2,189,288
Services - Computer Systems - 1.9%
Keane, Inc. * 106,300 2,265,519
Services - Data Processing - 7.4%
Equifax, Inc. 81,500 2,801,562
Fiserv, Inc. * 49,100
2,632,988
Paychex, Inc. 71,500 3,391,781
8,826,331
Services - Employment - 3.4%
Interim Services, Inc. * 122,000 1,830,000
Robert Half International, Inc. * 68,400 2,244,375
4,074,375
Total Equity Securities (Cost $101,547,875) 113,962,818
Principal
Repurchase Agreements - 4.7% Amount
State Street Bank: 4.89%, dated 3/31/99, due 4/1/99
(Collateral: $5,911,175,
FHLMC, 5.125%, 10/15/08) $5,600,000 5,600,000
Total Repurchase Agreements (Cost $5,600,000) 5,600,000
Total Investments (Cost $107,147,875) - 100.4% 119,562,818
Other assets and liabilities, net - (0.4%)
(455,241)
Net Assets - 100% $119,107,577
<PAGE>
Net Assets Consist of: Value
Paid-in capital applicable to the following shares of common stock,
250,000,000 shares of $0.01 par value authorized for Class A, Class B,
Class C and Class I combined:
Class A: 3,637,888 shares outstanding $83,521,304
Class B: 274,467 shares outstanding 7,550,574
Class C: 356,254 shares outstanding 8,449,800
Class I: 99,666 shares outstanding 2,587,489
Undistributed net investment income (loss) (727,246)
Accumulated net realized gain (loss) on investments 5,310,712
Net unrealized appreciation (depreciation) on investments 12,414,944
Net Assets $119,107,577
Net Asset Value Per Share
Class A (based on net assets of $99,588,832)
$27.38
Class B (based on net assets of $7,419,649) $27.03
Class C (based on net assets of $9,368,812) $26.30
Class I (based on net assets of $2,730,284) $27.39
* Non-income producing.
See notes to financial statements.
<PAGE>
Statement of Operations
Six Months Ended March 31, 1999
Net Investment Income
Investment Income
Interest income $7,620
Dividend income (net of foreign taxes of $830) 161,264
Total investment income 168,884
Expenses
Investment advisory fee 394,578
Transfer agency fees and expenses 176,644
Distribution Plan expenses:
Class A 156,404
Class B 25,836
Class C 39,927
Directors' fees and expenses 23,995
Administrative fees 65,765
Custodian fees 9,965
Registration fees 4,620
Reports to shareholders 25,938
Professional fees 7,515
Miscellaneous 17,982
Total expenses 979,169
Reimbursement from Advisor:
Class A (4,728)
Class B (330)
Class C (442)
Class I (1,077)
Fees paid indirectly (76,462)
Net expenses 896,130
Net Investment Income (Loss) (727,246)
Realized and Unrealized Gain (Loss) on Investments
Net realized gain (loss) on: 5,503,257
Change in unrealized appreciation or (depreciation) 14,183,872
Net Realized and Unrealized Gain
(Loss) on Investments 19,687,129
Increase (Decrease) in Net Assets
Resulting From Operations $18,959,883
See notes to financial statements.
<PAGE>
Statements of Changes in Net Assets
Six Months Ended Year Ended
March 31, September 30,
Increase (Decrease) in Net Assets 1999 1998
Operations
Net investment income (loss) $(727,246) $(870,207)
Net realized gain (loss) 5,503,257 13,379,305
Change in unrealized appreciation
or (depreciation) 14,183,872 (12,767,191)
Increase (Decrease) in Net Assets
Resulting From Operations 18,959,883 (258,093)
Distributions to shareholders from
Net realized gain:
Class A Shares (10,557,840) (5,175,390)
Class B Shares (597,118) --
Class C Shares (970,417) (417,340)
Total distributions (12,125,375) (5,592,730)
Capital share transactions:
Shares sold:
Class A Shares 25,515,007 48,471,955
Class B Shares 3,609,527 3,722,714
Class C Shares 2,103,302 3,607,052
Class I Shares 2,622,945 --
Reinvestment of distributions:
Class A Shares 10,000,576 4,897,289
Class B Shares 533,222 --
Class C Shares 903,502 391,618
Shares redeemed:
Class A Shares (16,955,796) (28,145,595)
Class B Shares (292,988) (21,901)
Class C Shares (657,657) (1,080,594)
Class I Shares (35,456) --
Total capital share transactions 27,346,184 31,842,538
Total Increase (Decrease) in Net Assets 34,180,692 25,991,715
Net Assets
Beginning of period 84,926,885 58,935,170
End of period (including undistributed net investment
income (loss) of $(727,246)
and $0 respectively) $119,107,577 $84,926,885
See notes to financial statements.
<PAGE>
Six Months Ended Year Ended
March 31, September 30,
Capital Share Activity 1999 1998
Shares sold:
Class A Shares 940,032 1,716,355
Class B Shares 134,131 131,783
Class C Shares 80,251 132,018
Class I Shares 100,986 --
Reinvestment of distributions:
Class A Shares 371,634 209,017
Class B Shares 20,006 --
Class C Shares 34,884 17,154
Shares redeemed:
Class A Shares (625,494) (985,970)
Class B Shares (10,648) (805)
Class C Shares (24,734) (40,384)
Class I Shares (1,320) --
Total capital share activity 1,019,728 1,179,168
See notes to financial statements.
<PAGE>
Notes to Financial Statements
Note A -- Significant Accounting Policies
General: The Calvert Capital Accumulation Fund (the "Fund"), a series of
Calvert World Values Fund, Inc., is registered under the Investment Company
Act of 1940 as a non-diversified, open-end management investment company.
The operation of each series are accounted for separately. The Fund offers
four classes of shares of capital stock. Class A shares are sold with a
maximum front-end sales charge of 4.75%. Class B shares are sold without a
front-end sales charge. With certain exceptions, the Fund will impose a
deferred sales charge at the time of redemption, depending on how long you
have owned the shares. Class C shares are sold without a front-end sales
charge. With certain exceptions, the Fund will impose a deferred sales
charge on shares sold within one year of purchase. Class B and Class C
shares have higher level of expenses than Class A shares. Effective March 1,
1999, the Fund began to offer Class I shares of capital stock. Class I
shares require a minimum account balance of $1,000,000. Class I shares have
no front-end or deferred sales charge. Each class has different: (a)
dividend rates, due to 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 Directors.
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.
Futures Contracts: The Portfolio may enter into futures contracts, agreeing
to buy or sell a financial instrument for a set price at a future date. The
Portfolio maintains securities with a value equal to its obligation under
each contract. Initial margin deposits of either cash or securities are made
upon entering into futures contracts; thereafter, variation margin payments
are made or received daily reflecting the change in market value. Unrealized
or realized gains and losses are recognized based on the change in market
value. Risks of futures contracts arise from the possible illiquidity of the
futures markets and the movement in the value of the investment or in
interest rates.
Security Transactions and Investment Income: Security transactions are
accounted for on trade date. Realized gains and losses are recorded on an
identified cost basis. Dividend income is recorded on the ex-dividend date.
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.
<PAGE>
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 may be paid indirectly by credits earned
on the Fund's cash on deposit with the bank. Such a 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
Ameritas Acacia Mutual Holding Company. The Advisor provides investment
advisory services and pays the salaries and fees of officers and affiliated
Directors of the Fund. For its services, the Advisor receives a monthly fee
based on an annual rate of .80% through February 28,1999, and .65% effective
March 1, 1999, based on the Fund's average daily net assets. Under the terms
of the agreement, $89,793 was payable at period end. The Fund paid a monthly
performance fee of plus or minus up to .05%, on an annual basis, of average
daily net assets of the performance period depending on the Fund's
performance compared to the S&P Mid-Cap 400 Index. For the six months ended
March 31, 1999, the performance fee adjustment decreased the advisory fee by
$2,729. The performance fee was eliminated February 28, 1999.
Calvert Administrative Services Company, Inc., 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 through
February 28, 1999. Effective March 1, 1999, Class A, Class B and Class C
shares pay an annual rate of .25% and Class I shares pay an annual rate of
.10%, based on their average daily net assets. Under the term of the
agreement, $24,018 was payable at period end.
The Advisor voluntarily waived and reimbursed the Fund for advisory fees,
administrative fees, and other operating expenses of $6,577.
Calvert Distributors, Inc., an affiliate of the Advisor, is the distributor
and principal underwriter for the Fund. Distribution Plans, adopted by Class
A, Class B and Class C
<PAGE>
shares, allow the Fund to pay the distributor for expenses and services
associated with distribution of shares. The expenses paid may not exceed
.35%, 1.00% and 1.00% annually of average daily net assets of each Class A,
Class B and Class C, respectively. Class I Shares do not have Distribution
Plan expenses. Under the terms of the agreement, $41,993 was payable at
period end.
The Distributor received $65,268 as its portion of the commissions charged
on sales of the Fund's shares.
Calvert Shareholder Services, Inc. (CSSI), an affiliate of the Advisor, acts
as shareholder servicing agent for the Fund. For its services, CSSI received
a fee of $62,591 for the six months ended March 31, 1999. Under the terms of
the agreement, $11,769 was payable at period end. National Financial Data
Services, Inc., is the transfer and dividend disbursing agent.
Each Director who is not affiliated with the Advisor receives an annual fee
of $4,000 plus $1,000 for each Board and Committee meeting attended.
Director's 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 $43,528,953 and $31,734,556, respectively.
The cost of investments owned at March 31, 1999 was substantially the same
for federal income tax and financial reporting purposes. Net unrealized
appreciation aggregated $12,414,944, of which $20,595,336 related to
appreciated securities and $8,180,392 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. The Fund had no loans outstanding pursuant to this line
of credit at March 31, 1999.
<PAGE>
Financial Highlights
Periods Ended
March 31, Sept. 30, Sept. 30,
Class A Shares 1999 1998 1997
Net asset value, beginning $25.43 $27.21 $22.55
Income from investment operations
Net investment income (loss) (.16) (.25) (.25)
Net realized and unrealized
gain (loss) 5.59 .96 4.91
Total from investment
operations 5.43 .71 4.66
Distributions from
Net investment income -- -- --
Net realized gain (3.48) (2.49) --
Total distributions (3.48) (2.49) --
Total increase (decrease) in
net asset value 1.95 (1.78) 4.66
Net asset value, ending $27.38 $25.43 $27.21
Total return* 21.57% 3.37% 20.67%
Ratios to average net assets:
Net investment income
(loss) (1.30%) (a) (1.08%) (1.09%)
Total expenses+ 1.77% (a) 1.74% 1.91%
Net expenses 1.63% (a) 1.61% 1.85%
Expenses reimbursed .01% (a) -- --
Portfolio turnover 32% 77% 126%
Net assets, ending (in thousands) $99,589 $75,068 $54,751
Number of shares outstanding
ending (in thousands) 3,638 2,952 2,012
Periods Ended
September 30, September 30,
Class A Shares 1996 1995^
Net asset value, beginning $21.48 $15.00
Income from investment operations
Net investment income (loss) (.24) (.11)
Net realized and unrealized gain (loss) 1.88 6.61
Total from investment operations 1.64 6.50
Distributions from
Net investment income -- (.02)
Net realized gain (.57) --
Total distributions (.57) (.02)
Total increase (decrease) in net asset value 1.07
6.48
Net asset value, ending $22.55 $21.48
Total return* 7.92% 43.40%
Ratios to average net assets:
Net investment income (loss) (1.56%) (1.55%)(a)
Total expenses+ 2.16% 2.35%(a)
Net expenses 1.98% 2.06%(a)
Expenses reimbursed -- .05%(a)
Portfolio turnover 114% 95%
Net assets, ending (in thousands) $39,834 $16,111
Number of shares outstanding, ending
(in thousands) 1,767 750
<PAGE>
Financial Highlights
Periods Ended
March 31, September 30,
Class B Shares 1999 1998 #
Net asset value, beginning $25.28 $28.39
Income from investment operations
Net investment income (loss) (.22) (.16)
Net realized and unrealized gain (loss) 5.45 (2.95)
Total from investment operations 5.23 (3.11)
Distributions from
Net investment income -- --
Net realized gain (3.48) --
Total distributions (3.48) --
Total increase (decrease) in net asset value 1.75
(3.11)
Net asset value, ending $27.03 $25.28
Total return* 20.87 (10.95)%
Ratios to average net assets:
Net investment income (loss) (2.33%) (a) (2.62%)
Total expenses+ 2.89% (a) 3.31%
Net expenses 2.67% (a) 3.01%
Expenses reimbursed .01% (a) .26%
Portfolio turnover 32% 77%
Net assets, ending (in thousands) $7,420 $3,311
Number of shares outstanding, ending
(in thousands) 274 131
<PAGE>
Financial Highlights
Periods Ended
March 31, Sept. 30, Sept. 30,
Class C Shares 1999 1998 1997
Net asset value, beginning $24.63 $26.64 $22.34
Income from investment operations
Net investment income (loss) (.24) (.40) (.47)
Net realized and unrealized
gain (loss) 5.39 .88 4.77
Total from investment
operations 5.15 .48 4.30
Distributions from
Net investment income -- -- --
Net realized gain (3.48) (2.49) --
Total distributions (3.48) (2.49) --
Total increase (decrease) in net
asset value 1.67 (2.01) 4.30
Net asset value, ending $26.30 $24.63 $26.64
Total return* 21.11% 2.52% 19.25%
Ratios to average net assets:
Net investment income
(loss) (2.15%) (a) (1.98%) (2.30%)
Total expenses+ 2.67% (a) 2.75% 3.11%
Net expenses 2.48% (a) 2.50% 3.05%
Expenses reimbursed .01% (a) -- --
Portfolio turnover 32% 77% 126%
Net assets, ending (in thousands) $9,369 $6,548 $4,184
Number of shares outstanding,
ending (in thousands) 356 266 157
Periods Ended
September 30, September 30,
Class C Shares 1996 1995^
Net asset value, beginning $21.55 $15.00
Income from investment operations
Net investment income (loss) (.55) (.15)
Net realized and unrealized gain (loss) 1.91 6.70
Total from investment operations 1.36 6.55
Distributions from
Net investment income -- --
Net realized gain (.57) --
Total distributions (.57) --
Total increase (decrease) in net asset value .79
6.55
Net asset value, ending $22.34 $21.55
Total return* 6.56% 43.67%
Ratios to average net assets:
Net investment income (loss) (2.82%) (3.13%)(a)
Total expenses+ 3.42% 3.79%(a)
Net expenses 3.24% 3.50%(a)
Expenses reimbursed -- 2.79%(a)
Portfolio turnover 114% 95%
Net assets, ending (in thousands) $3,164 $1,992
Number of shares outstanding, ending
(in thousands) 142 92
<PAGE>
Financial Highlights
Period Ended
March 31,
CLASS I SHARES 1999^^
Net asset value, beginning $25.97
Income from investment operations
Net investment income (loss) (.01)
Net realized and unrealized gain (loss) 1.43
Total from investment operations 1.42
Total increase (decrease) in net asset value
1.42
Net asset value, ending $27.39
Total return* 5.47%
Ratios to average net assets:
Net investment income (loss) (.49%) (a)
Total expenses+ .82% (a)
Net expenses .80% (a)
Expenses reimbursed .47% (a)
Portfolio turnover 32%
Net assets, ending (in thousands) $2,730
Number of shares outstanding, ending (in thousands) 100
(a) Annualized
+ Ratio reflects total expenses before reduction for fees paid
indirectly; such reductions are included in the ratio of
net expenses. Total expenses are presented net of expense waivers and
reimbursements.
* Total return does not reflect deduction of any front-end or deferred
sales charge.
^ From October 31, 1994 inception.
# From April 1, 1998 inception.
^^ From March 1, 1999 inception.
<PAGE>
A special meeting of shareholders was scheduled for February 24, 1999. There
were several proposals voted upon at the meeting. A brief description of
each proposal and the number of votes received for, against, and votes to
abstain is shown below. All proposals were passed.
Proposal 1 - To approve amended fundamental investment restrictions to: (a)
delete restrictions that are no longer required to be fundamental due to
changes in state laws or which otherwise need not be fundamental; and (b) to
revise the language of those restrictions that are still required to be
fundamental.
For Against Abstain Broker Non-Vote
1,331,912 39,827 159,592 336,290
Proposal 2 - To approve a new investment advisory agreement with the
investment advisor, Calvert Asset Management Company, Inc. ("CAMCO").
For Against Abstain
1,697,647 19,819 150,155
Proposal 3 - To approve a new investment subadvisory agreement between CAMCO
and the investment subadvisor, Brown Capital Management, Inc.
For Against Abstain
1,688,606 27,152 151,864
Proposal 4 - To authorize CWVF and/or CAMCO to enter into a new and/or
materially amend an existing investment subadvisory agreement with a
subadvisor in the future without having to first obtain shareholder approval.
For Against Abstain Broker Non-Vote
1,304,377 73,719 153,233 336,292
Proposal 5 - To ratify each Board's selection of auditors,
PricewaterhouseCoopers LLP.
For Against Abstain
1,715,911 11,402 140,310
<PAGE>
Calvert Group and the Year 2000
Plans and Progress
We are now less than a year away from the year 2000, a problematic date for
computer systems coded for two-character year format. Entered as "00," the
year 2000 would be processed as 1900, a mistake that could foul a variety of
date-sensitive transactions.
As your mutual fund sponsor, our goal is make sure there is no interruption
in the level of service you receive. In the summary below, we've outlined
the steps Calvert Group is taking to ensure our systems perform reliably.
Step One--Assess Systems and Software. Develop an Action Plan
In 1997, we identified all systems, operating platforms and software
potentially affected by the millennium bug. These included:
Calvert Group systems--portfolio trading, sales contact and reporting
and internal management reporting
transfer agency systems--shareholder record-keeping and transaction
processing
subadvisor systems--investment accounting
other third-party data and service systems.
We also formed a Y2K task force, led by Calvert's vice president of
technology. This group has identified and prioritized our efforts to achieve
year 2000 compliance.
Step Two--Test for Compliance. Repair Systems as Necessary.
Internal systems have been tested. We've made repairs and moved modified
code into production. These systems are now fully compliant. Transfer agency
systems were re-engineered for compliance in 1989. Recent tests indicate
these are, in fact, compliant. The readiness of third-party systems,
including subadvisor systems, has been evaluated. Based on information
received from these groups, we have found no significant obstacles to
compliance.
Step Three--Confirm Compliance. Finalize Contingency Plan.
Testing of transfer agency systems will continue through 1999 to ensure
these remain compliant and continue to interact correctly with external
systems and processes. The transfer agency has established a back-up site,
should main systems fail, and compliance testing of these contingency
measures are also underway. We are developing contingency plans to ensure
that any unforeseen systems failures will not adversely affect our
operations or inconvenience our shareholders.
For more information or to get an update on remediation and testing efforts,
please visit us online at www.calvertgroup.com.
