September 30, 1999
annual
report
Calvert income fund
<PAGE>
Calvert
Income Fund
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or Overnight Mail
Calvert Group
c/o NFDS
330 West 9th Street
Kansas City, MO 64105
Web Site
http://www.calvert.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
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printed on recycled paper
using soy-based inks
<PAGE>
Table
of
Contents
President's Letter
1
Portfolio
Manager Remarks
2
Report of Independent Accountants
4
Schedule
of Investments
5
Statement
of Assets and Liabilities
7
Statement
of Operations
8
Statements
of Changes in
Net Assets
9
Notes to
Financial Statements
11
Financial Highlights
15
Y2K Update
17
Dear Shareholders:
1999 may be characterized as a year of
changing fortunes. We have witnessed a
strong recovery in the markets of Asia and
the Far East, while European markets have
enjoyed mixed blessings. At home, top
performing stocks were again concentrated by
capitalization range and industry group,
with large-capitalization companies,
technology, and internet stocks fueling the
advance. Other categories, such as small cap
stocks and health care stocks, have lagged
these advances.
We have seen a watchful Federal Reserve
raise interest rates in response to
the lessening of global liquidity concerns
and rising price pressures -- the
latter being a downside to the benefit of
low unemployment.
On the whole, the current economic
environment is very positive, but in any
environment -- particularly one marked by
volatility such as today's -- investor
discipline is more important than ever. In
reviewing our recently redesigned Web site,
www.calvert.com, you will see that we now
offer more interactive information tools to
help you make the most informed decisions.
As always, we encourage you to make
decisions based on your financial objectives
and tolerance for risk. You should routinely
review your asset allocation to be sure you
are positioned at a comfortable risk level.
Your financial professional can suggest
strategies that keep you on track to meet
long-term financial objectives.
We appreciate your investment in Calvert
Group funds and look forward to helping you
meet your financial goals.
Sincerely,
Barbara J. Krumsiek
President and CEO
October 27, 1999
<PAGE>
Calvert Income Fund Portfolio Statistics
September 30, 1999
Investment Performance
6 Months12 Months
ended ended
9/30/99 9/30/99
Class A
3.30% 10.68%
Class I
3.55% N/A
Lehman Aggregate
Bond Index TR (0.21%) (0.37%)
Lipper Corporate
Debt Funds
BBB-Rated Average (1.26%) (0.99%)
Maturity Schedule
Weighted A
verage
9/30/99 9/30/98
19 years 15 years
SEC Yields
30 days en
ded
9/30/99 9/30/98
Class A
6.41% 7.51%
Class I
7.22% N/A
Portfolio Quality Structure
AAA 20%
AA
- --
A 19%
BBB 46%
BB
7%
B --
NR
- --
Cash & Cash Equivalents 8%
100%
Investment performance does not reflect the
deduction of any front-end sales charge.
TR represents total return.
Source: Lipper Analytical Services, Inc.
NR: Obligation is not rated by a commercial
credit rating service, such as Moody's
Investors Services, Inc., or Standard &
Poor's Corporation;
obligation has been determined to be of
appropriate quality for the Portfolio
by Calvert Asset Management Company, Inc.,
the Investment Advisor.
Greg Habeeb
of Calvert Asset Management Company
How did the Fund perform relative to its
peer group?
For the second reporting period in a row,
the Income Fund ranks at the top of the list
of the Lipper Corporate Debt Funds BBB-Rated
category for the
1 year period, outperforming the average by
more than 1000 basis points.
Over the same time, the Fund's Class A
shares have also outperformed the Lehman
Aggregate Bond Index by over 1000 basis
points.
What were the driving forces in the credit
markets?
Treasury yields rose significantly over the
last 12 months (from 125 to 200 basis points
across the yield curve) due to two factors.
First, as fears of a global economic crisis
lessened, the flight to quality reversed
itself and treasury prices dropped
dramatically. Second, fears of inflation
resurfaced,
led by rising commodity prices (oil and gold
in particular).
Credit markets rallied significantly for the
first half of the last year as
investors became less fearful of holding non-
Treasury bonds, especially since the yield
spreads between such bonds and Treasuries
had widened to levels
not seen for 10 years. The appetite for such
bonds created a frenzy of issuance which
lasted through July. In addition, Y2K fears
encouraged issuers to borrow earlier in the
year rather than later. Amazingly, this
issuance was readily absorbed by an investor
marketplace fond of the much higher coupons
now available.
<PAGE>
One last observation is that credit spreads
recovered about 40% to 60% of the spread
widening that occurred during last year's
global crisis. Most of this recovery took
place through April. Since April spreads
have stabilized at levels much wider than
those that existed from 1992-1997.
What was your strategy?
Because of the prevailing wide levels of
spreads of non-government bonds,
we have been overweighted in corporate,
agency, and asset back securities. We have
avoided mortgages because of volatility
concerns. And with high-grade yields now
available in the investment grade market, we
have been reluctant to pursue even higher
yields in the below-investment bonds. We
have been overweighted in BBB corporate
bonds and higher grade bonds
such as agencies. We have been underweighted
in mortgages, which we feel are relatively
rich.
What should investors expect in the coming
months?
With Y2K concerns and fears of inflation,
we do not anticipate any major
rally in spreads over the next 6 months. We
expect a hearty supply of new issues
especially in the first quarter of 2000 to
put pressure on spreads. However, it is our
feeling that at current wide levels an
investor is well compensated for bearing the
risk of potential declining technicals.
October 27, 1999
Portfolio Statistics
September 30, 1999
Average Annual Total Returns
Class A Sh
ares
One year
6.58%
Five year
9.21%
Ten year
8.31%
Since inception 9.80%
(10/12/82)
Class I Sh
ares
Since inception 5.83%
(3/1/99)
Performance Comparison
Comparison of change in value of $10,000
investment. (Source: Lipper Analytical
Services, Inc.)
INSERT LINE GRAPH HERE
Total returns assume reinvestment of
dividends and reflect the deduction of the
Fund's Class A maximum front-end sales
charge of 3.75%. 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.
<PAGE>
Report Of Independent Accountants
To the Board of Trustees of The Calvert Fund
and Shareholders of Calvert Income Fund:
In our opinion, the accompanying statement
of assets and liabilities, including the
schedule of investments, and the related
statement of operations, the 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, 1999, and the results of its
operations, the changes in its net assets
and the financial highlights for each of the
periods presented, in conformity with
accounting principles generally accepted in
the United States. These financial
statements and the 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 auditing standards generally
accepted in the United States, which require
that we plan and perform the audit to obtain
reasonable assurance about whether the
financial statements are free of material
misstatement. 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, 1999 by correspondence with
custodians and brokers, provide
a reasonable basis for the opinion expressed
above.
PricewaterhouseCoopers LLP
Baltimore, Maryland
November 10, 1999
<PAGE>
Schedule of Investments
September 30, 1999
Principal
Debt Securities - 84.8% Amount Value
Corporate Bonds - 73.9%
AB Spintab, 6.80%, 12/29/49 $2,250,000
$2,179,530
Abbey National Plc, 6.70%, 6/29/49
1,500,000 1,365,036
Allfirst PFD Funding Capital Trust, 6.81%,
7/15/29
1,000,000 999,370
Atlantic Mutual Insurance Co., 8.15%,
2/15/28 500,000 413,915
BCI US Funding Trust I, 8.01%, 12/29/49
1,000,000 923,520
BNP US Funding LLC, 7.738%, 12/31/49
2,000,000 1,865,614
Bank of New York, Inc., 7.625%, 7/15/02
1,000,000 1,022,140
Blyth Industries, Inc., 7.90%, 10/01/09
1,000,000 982,210
Chase Funding Trust, 7.288%, 12/26/25
1,250,000 1,248,550
Computer Associates International, Inc.,
6.375, 4/15/05
2,000,000 1,879,400 Conseco Financial
Trust II, 8.70%, 11/15/26
3,100,000 2,704,015 Conseco, Inc.,
6.80%, 6/15/05 3,475,000 3,188,382
Cox Communications, Inc., 7.875%, 8/15/09
2,000,000 2,057,840 Dillards Inc.,
6.39%, 8/1/13 500,000 481,025
Dime Bancorp, Inc., 7.00%, 7/25/01
2,000,000 1,991,140
Florida Windstorm Underwriting, 7.125%,
8/25/07
2,400,000 2,309,016 Hospitality
Properties Trust, 7.00%, 3/1/081,000,000 8
76,020
Imperial Bank, 8.50%, 4/1/09 3,000,000
2,850,555
Interpool Capital Trust, 9.875%, 2/15/27
1,000,000 884,970
Lilly Del Mar, Inc.:
7.717%, 8/1/29 1,000,000 1,005,804
6.57%, 8/5/29 2,600,000 2,564,026
Mark IV Industries, Inc., 7.50%, 9/1/07
1,000,000 910,000
Merita Bank, Ltd., 7.15%, 12/29/49
1,100,000 1,073,592
North American Mortgage, 7.315%, 8/25/03 1
,500,000 1,483,710 Orion Capital Trust
II, 7.70%, 4/15/28 2,090,000 1,787,974
Osprey Trust Osprey, Inc., 8.31%, 1/15/03
3,500,000 3,512,600 Pennsylvania Power
and Light, 7.15%, 6/25/09
1,500,000 1,512,180 Pepco Energy
Transition Trust, 6.13%, 3/1/09
1,000,000 943,180
Riggs Capital Trust, 8.625%, 12/31/26
1,000,000 930,050
Royal Sun Alliance Insurance Group, 8.95%,
10/15/29
3,250,000 3,202,388 Saks, Inc., 7.00%,
7/15/04 1,500,000 1,414,740
Skandinaviska Enskilda Banken, 6.50%,
12/29/49
4,685,000 4,426,500 Socgen Real Estate
Co. LLC, 7.64%, 12/29/49
2,000,000 1,852,380 Sovereign Bancorp,
Inc., 6.75%, 9/1/00 2,150,000
2,136,950 SunAmerica, Inc., 7.34%, 8/30/05
2,000,000 2,036,060
Supervalu, Inc., 7.875%, 8/1/09 3,000,000
3,007,980
Swedbank Sparbank Svenge AB, 7.50%, 9/27/49
2,500,000 2,262,075 Teleglobe CDA,
Inc.:
7.20%, 7/20/09 3,500,000 3,318,455
7.70%, 7/20/29 2,000,000 1,887,020
Union Bank Norway, 7.35%, 12/31/49
2,000,000 1,965,720
Total Corporate Bonds (Cost
$74,168,268) 73,455,632
<PAGE>
Principal
Debt Securities - Cont'd Amount Value
Mortgage Securities - 0.0%
Government National Mortgage Association,
Pool 137518,
11.00%, 10/15/15 $1,056 $1,185
Total Mortgage Securities (Cost $1,094)
1,185
Municipal Bonds - 0.4%
Chickasaw Nation Oklahoma Certificates of
Participation,
10.00%, 8/1/03 * 376,219 357,408
Total Municipal Bonds (Cost $376,219)
357,408
U.S. Treasury - 10.5%
U.S. Treasury Bonds, 5.25%, 2/15/29
6,550,000 5,726,927
U.S. Treasury Notes, 6.00%, 8/15/09
4,750,000 4,787,097
Total U.S. Treasury (Cost $10,470,532)
10,514,024
Total Debt Securities (Cost
$85,016,113) 84,328,249
Repurchase Agreements - 1.2%
State Street Bank: 5.31%, dated 9/30/99, due
10/1/99
(Collateral: $1,257,850 U.S. Treasury
Notes, 5.625%, 12/31/02)
1,200,000 1,200,000
Total Repurchases Agreements (Cost
$1,200,000) 1,200,000
Equity Securities - 3.7% Shares
Preferred Stocks - 3.7%
First Republic Preferred Capital Corp.
3,000 2,940,000
Highwood Properties, Inc., Series A,
Preferred 1,000 765,930
Total Equity Securities (Cost
$4,039,520) 3,705,930
TOTAL INVESTMENTS (Cost $90,255,633)
- - 89.7%
89,234,179
Other assets and liabilities, net -
10.3% 10,202,270
Net Assets - 100% $99,436,449
* This security was valued by the Board of
Trustees. See Note A.
See notes to financial statements.
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
September 30, 1999
Assets
Value
Investments in securities, at value
$89,234,179
Cash 2,742,360
Receivable for securities sold
51,738,228
Receivable for shares sold
2,368,057
Interest and dividends receivable
1,256,937
Other assets
22,304
Total assets 147,362,065
Liabilities
Payable for securities purchased
47,600,936
Payable for shares redeemed
213,307
Payable to Calvert Asset Management Co.,Inc.
40,618
Payable to Calvert Administrative Services
Company 21,667
Payable to Calvert Shareholders Services,
Inc. 3,464
Payable to Calvert Distributors, Inc.
11,134
Accrued expenses and other liabilities
34,490
Total liabilities 47,925,616
Net assets $99,436,449
Net Assets Consist of:
Paid in capital applicable to the following
shares of beneficial interest,
unlimited number of no par shares
authorized:
Class A:5,371,502 shares outstanding
$91,050,816
Class B: 72,175 shares outstanding
1,225,682
Class I:377,680 shares outstanding
6,403,847
Undistributed net investment income
31,798
Accumulated net realized gain (loss) on
investments 1,745,760
Net unrealized appreciation (depreciation)
on investments (1,021,454)
Net Assets $99,436,449
Net Asset Value Per Share
Class A (based on net assets
$91,763,518) $17.08
Class B (based on net assets
$1,231,275) $17.06
Class I (based on net assets
$6,441,656) $17.06
See notes to financial statements.
<PAGE>
Statement of Operations
Year ended September 30, 1999
Net Investment Income
Investment Income
Interest income $4,064,037
Dividend income 112,500
Total investment income
4,176,537
Expenses
Investment advisory fee
285,313
Administrative fees 115,104
Transfer agency fees and expenses
92,178
Distribution plan expenses:
Class A 84,052
Class B 897
Trustees' fees and expenses
5,991
Custodian fees 85,005
Registration fees 41,366
Reports to shareholders
13,088
Professional fees 17,080
Accounting fees 12,452
Miscellaneous 8,065
Total expenses 760,591
Reimbursement from Advisor:
Class B (684)
Class I (4,234)
Fees paid indirectly
(52,861)
Net expenses 702,812
Net Investment Income 3,473,725
Realized and Unrealized Gain (Loss) on
Investments
Net realized gain 3,031,934
Change in unrealized appreciation
(depreciation) (1,125,125)
Net Realized and Unrealized Gain
(Loss) on Investments 1,906,809
Increase (Decrease) in Net Assets
Resulting From Operations
$5,380,534
See notes to financial statements.
<PAGE>
Statements of Changes in Net Assets
Year EndedYear En
ded
September 30,Sept
ember 30,
Increase (Decrease) in Net Assets
1999 1998
Operations
Net investment income $3,473,725$2,368,
880
Net realized gain (loss) 3,031,934
1,246,860
Change in unrealized appreciation or
(depreciation)
(1,125,125) 155,171
Increase (Decrease) in Net Assets
Resulting From Operations 5,380,534
3,770,911
Distributions to shareholders from
Net investment income:
Class A Shares (3,366,927)(2,333
,878)
Class B Shares (5,526) ----
Class I Shares (104,476) --
Net realized gain:
Class A Shares (2,096,000)(1,457
,042)
Total distributions (5,572,929)(3,790
,920)
Capital share transactions:
Shares sold:
Class A Shares 61,186,5136,352,284
Class B Shares 1,231,561 ----
Class I Shares 6,555,652 --
Reinvestment of distributions:
Class A Shares 4,576,7233,189,636
Class B Shares 4,841 ----
Class I Shares 104,476 --
Shares redeemed:
Class A Shares (15,371,155)(7,21
6,787)
Class B Shares (10,720) --
Class I Shares (256,281) --
Total capital share transactions
58,021,610 2,325,133
Total Increase (Decrease) in Net Assets
57,829,215 2,305,124
Net Assets
Beginning of year 41,607,23439,302,
110
End of year (including undistributed net
investment
income of $31,798 and $35,002,
respectively.)
$99,436,449 $41,607,234
See notes to financial statements.
<PAGE>
Statements of Changes in Net Assets
Year EndedYear En
ded
September 30,Sept
ember 30,
Capital Share Activity 1999 1998
Shares sold:
Class A Shares 3,580,320 369,441
Class B Shares 72,520 ----
Class I Shares 386,659 --
Reinvestment of distributions:
Class A Shares 271,265 187,050
Class B Shares 283 --
Class I Shares 6,120 --
Shares redeemed:
Class A Shares (902,773)(419,266)
Class B Shares (628) --
Class I Shares (15,099) --
Total capital share activity 3,398,667
137,225
<PAGE>
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. The Fund offers three classes of
shares of beneficial interest. Class A
shares are sold with a maximum front-end
sales charge of 3.75%. Effective March 1,
1999, the Fund began to offer Class I shares
of beneficial interest. Class I shares
require a minimum account balance of
$1,000,000. Class I shares have no front-end
sales charge and have a lower expense ratio
than Class A shares. Effective August 1,
1999, the Fund began
to offer Class B shares of beneficial
interest. 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 B shares have a higher level
of expenses than Class A shares. Each class
has different: (a) dividend rates due to
differences in Distribution Plan expenses
and other class specific expenses, (b)
exchange privileges and (c) class specific
voting rights.
Security Valuation: Securities listed or
traded on a national securities exchange are
valued at the last reported sale price.
Unlisted securities and listed securities
for which the last sale price is 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, 1999, $357,408, or 0.4% 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.
<PAGE>
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.
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 for 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. Investment income and realized and
unrealized gains and losses are allocated to
separate classes of shares based upon the
relative net assets of each class. Expenses
arising in connection with a class are
charged directly to that class. Expenses
common to the classes are allocated to each
class in proportion to their relative net
assets.
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 a deposit arrangement is an alternative
to overnight investments.
<PAGE>
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
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. Effective March 1, 1999,
the fees paid to the advisor changed to an
annual
rate of .40% of the Fund's average daily net
assets.
The Advisor contractually reimbursed the
Fund for expenses of $4,918.
Calvert Administrative Services Company,
Inc., an affiliate of the Advisor, provides
administrative services to the Fund for an
annual fee, payable monthly. The
administrative service fee was initiated on
March 1, 1999. Class A and Class B shares
pay an annual rate of .30% and Class I
shares pay an annual rate of .10%, based on
their average daily net assets.
Calvert Distributors, Inc., an affiliate of
the Advisor, is the distributor and
principal underwriter for the Fund.
Distribution Plans, adopted by Class A and
Class B shares, allow the Portfolios to pay
the distributor for expenses and services
associated with the distribution of shares.
The expenses paid may not exceed .50%, and
1.0% annually of the Fund's average daily
net assets of
Class A and Class B, respectively. Class I
does not have Distribution plan expenses.
The Distributor received $96,342 as its
portion of the 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
$24,328 for the year ended September 30,
1999. National Financial Data Services,
Inc., is the transfer and dividend
disbursing agent.
Each Trustee of the Fund 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 in the
series served.
Note C -- Investment Activity
During the year, purchases and sales of
investments, other than short-term
and U.S. government securities, were
$754,247,730 and $721,544,797, respectively.
U.S. government security purchases were
$1,109,587,432 and sales were
$1,101,123,568.
The cost of investments owned at September
30,1999 was substantially the same for
federal income tax and financial reporting
purposes. Net unrealized depreciation
aggregated $1,021,454, of which $358,823
related to appreciated securities and
$1,380,277 related to depreciated
securities.
As a cash management practice, the Portfolio
may sell or purchase securities from other
Portfolios managed by the Advisor. For the
year ended September 30, 1999, the Portfolio
<PAGE>
effected transactions with other Calvert
Portfolios, which resulted in net realized
gains on sales of securities of $710,647.
These purchases and sales transactions,
executed at independently derived prices
pursuant to Rule 17a-7 under the Investment
Company Act of 1940, were $13,353,533 and
$60,129,055, respectively.
Note D -- Line of Credit
A financing agreement is in place with all
Calvert Group Funds (except for Calvert
Social Investment Fund Managed Index
Portfolio) 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 September
30, 1999.
<PAGE>
Financial Highlights
Years Ended
September 30,September 30,Sept
ember 30,
Class A Shares 1999 1998 1997
Net asset value, beginning$17.17 $17.20
$16.47
Income from investment operations
Net investment income.99 1.02 1.02
Net realized and unrealized gain (loss)
.74 .61 .74
Total from investment operations
1.73 1.63 1.76
Distributions from
Net investment income(.99)(1.01) (1.02)
Net realized gain (.83) (.65) (.01)
Total distributions(1.82)(1.66)(1.03)
Total increase (decrease) in net asset value
(.09) (.03) .73
Net asset value, ending$17.08$17.17 $17.20
Total return* 10.68% 9.92%
11.03%
Ratios to average net assets:
Net investment income6.01%5.96% 6.04%
Total expenses 1.32% 1.43% 1.33%
Expenses before offsets 1.32% 1.43%
1.33%
Net expenses 1.23% 1.36% 1.26%
Portfolio turnover3,454% 3,461% 2,961%
Net assets, ending (in thousands) $91,764
$41,607 $39,302
Number of shares outstanding,
ending (in thousands)5,3722,423 2,285
Years Ended
September 30,Sept
ember 30,
Class A Shares 1996 1995
Net asset value, beginning $16.82
$15.68
Income from investment operations
Net investment income 1.01 1.11
Net realized and unrealized gain (loss)
(.32) 1.14
Total from investment operations
.69 2.25
Distributions from
Net investment income (1.01) (1.11)
In excess of net realized gain
(.03) --
Net realized gain ---- --
Total distributions (1.04) (1.11)
Total increase (decrease) in net asset value
(.35) 1.14
Net asset value, ending $16.47 $16.82
Total return* 4.21%
14.90%
Ratios to average net assets:
Net investment income 6.02% 6.89%
Total expenses 1.26% 1.26%
Expenses before offsets 1.26%
1.26%
Net expenses 1.23% 1.23%
Portfolio turnover 153% 135%
Net assets, ending (in thousands)
$44,431 $42,637
Number of shares outstanding,
ending (in thousands) 2,698 2,535
<PAGE>
Financial Highlights
Year Ended
September
30,
Class B Shares 1999 ^^
Net asset value, beginning
$17.02
Income from investment operations
Net investment income .13
Net realized and unrealized gain (loss)
.05
Total from investment operations
.18
Distributions from
Net investment income (.14)
Total distributions (.14)
Total increase (decrease) in net asset value
.04
Net asset value, ending $17.06
Total return*
1.06%
Ratios to average net assets:
Net investment income 5.00% (a)
Total expenses 3.74% (a)
Expenses before offsets
2.98% (a)
Net expenses 2.91% (a)
Portfolio turnover 3,454%
Net assets, ending (in thousands)
$1,231
Number of shares outstanding,
ending (in thousands) 72
Year Ended
September
30,
Class I Shares 1999 ^
Net asset value, beginning
$16.73
Income from investment operations
Net investment income .63
Net realized and unrealized gain (loss)
.34
Total from investment operations
.97
Distributions from
Net investment income (.64)
Total distributions (.64)
Total increase (decrease) in net asset value
.33
Net asset value, ending $17.06
Total return*
5.83%
Ratios to average net assets:
Net investment income 6.37% (a)
Total expenses 1.07% (a)
Expenses before offsets
.81% (a)
Net expenses .72% (a)
Portfolio turnover 3,454%
Net assets, ending (in thousands)
$6,442
Number of shares outstanding,
ending (in thousands) 378
(a) Annualized
* Total return is not annualized and does
not reflect deduction of any front-end or
deferred sales charge.
^ From March 1, 1999 inception.
^^ From August 1, 1999, inception.
<PAGE>
Calvert Group and the Year 2000
Three years ago, Calvert Group recruited a
task force to address the Y2K compliance
problem. Headed by our Vice President of
Information Technology, the task force
developed a comprehensive Year 2000
Initiative that addressed all software and
hardware systems that could possibly be
susceptible to year-2000 problems.
Today we can report that we have completed
100 percent of our year-2000 Initiative and
are currently monitoring our systems to
ensure that they will remain compliant.
These are just some of the steps Calvert
Group has taken over the past 36 months:
Inventory. To safeguard our inventory
systems we documented all hardware and sof
tware systems used by Calvert Group.
Assessment. Our system engineers made
an extensive
evaluation of the readiness of each system
and its susceptibility to year-2000
problems.
Remediation. We have modified
software codes, upgraded hardware, improved
data interfaces and applied upgrades.
Testing. We have deployed year-2000
test environments and executed test plans
with dates from 1999 through 2000 and
beyond.
Implementation. We have released our
modified software, deployed upgraded
hardware and coordinated with business
partners where data interfaces have changed.
Vendor Compliance. All significant
third-party vendors, including subadvisors,
have been contacted and reported Y2K
compliance.
Finally, Calvert Group will re-test
continuously through the remainder of
1999 and into 2000 to ensure that operating
platforms, third-party software, and
interfaces to other systems remain stable
throughout the rollover to the year 2000.
If you have any questions regarding the Year
2000 issue, please send e-mail
to [email protected] or call
1.800.368.2748.
Calvert Group's Web site, www.calvert.com
and our Voice Response Unit
(800-368-2745) will be operational Saturday,
January 1, 2000 and completely updated to
include all account activity through year-
end 1999. We encourage you to use either
system to verify the status of your account.
A customer service representative will be
available to assist you Monday,
January 3, 2000.
<PAGE>
September 30, 1999
annual
report
Calvert New vision small cap fund
<PAGE>
Calvert New Vision
Small Cap Fund
To Open an Account
800-368-2748
Yields and Prices
Calvert Information Network
(24 hours, 7 days a week)
800-368-2745
Service for Existing Account
Shareholders: 800-368-2745
Brokers: 800-368-2746
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.calvert.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
Report of Independent Accountants
6
Statement
of Net Assets
7
Statement
of Operations
10
Statements
of Changes in
Net Assets
11
Notes to
Financial Statements
13
Financial Highlights
17
Y2K Update
19
Dear Shareholders:
1999 may be characterized as a year of
changing fortunes. We have witnessed a
strong recovery in the markets of Asia and
the Far East, while European markets have
enjoyed mixed blessings. At home, top
performing stocks were again concentrated by
capitalization range and industry group,
with large-capitalization companies,
technology, and internet stocks fueling the
advance. Other categories, such as small cap
stocks and health care stocks, have lagged
these advances.
We have seen a watchful Federal Reserve
raise interest rates in response to
the lessening of global liquidity concerns
and rising price pressures -- the
latter being a downside to the benefit of
low unemployment.
On the whole, the current economic
environment is very positive, but in any
environment -- particularly one marked by
volatility such as today's -- investor
discipline is more important than ever. In
reviewing our recently redesigned Web site,
www.calvert.com, you will see that we now
offer more interactive information tools to
help you make the most informed decisions.
As always, we encourage you to make
decisions based on your financial objectives
and tolerance for risk. You should routinely
review your asset allocation to be sure you
are positioned at a comfortable risk level.
Your financial professional can suggest
strategies that keep you on track to meet
long-term financial objectives.
We appreciate your investment in Calvert
Group funds and look forward to helping you
meet your financial goals.
Sincerely,
Barbara J. Krumsiek
President and CEO
October 27, 1999
<PAGE>
Social
Update
Calvert Expands Its Web Site
Calvert has expanded its Web site, designing
it to be even more user-friendly to you, the
shareholder. It also has a new Web address,
www.calvert.com. Importantly, your Web site
also provides public education about
socially responsible investing. A complete
list of portfolio holdings for the fund is
now posted monthly on the site -- a first in
the mutual fund industry. Two
new screens were added to the "Know What You
Ownr" service: Individuals can now determine
whether their mutual funds invest in
firearms manufacturers or nuclear power
companies, as well as continue to find out
whether they own stock in tobacco companies.
Please visit us at www.calvert.com and learn
more about how Calvert Group can meet your
needs.
High Social Impact Investments
The Fund is helping provide support through
its High Social Impact Investments (HSII)
program where a percentage of the Fund's
money is invested at low rates to support
people and communities. Take for example
the financial support it has given Mercy
Loan Fund (MLF) which in turn has helped
fund Housing And Neighborhood Developers in
Omaha, Nebraska.
Since beginning the renovation and sale of
houses for ownership in late 1992, Housing
and Neighborhood Developers (HANDS) in
Omaha, Nebraska, has renovated and sold 97
homes. This represents acquisition and
construction financing of nearly $4,000,000.
MLF has provided the financing for most of
these houses, at a below-market interest
rate and without costly red tape. The result
has both stretched limited federal and
private subsidy dollars, and increased
efficiency. Stable housing means that
children no longer are moved between schools
during the year as parents seek decent,
affordable housing. Since its inception, MLF
has provided funds to developers who have
produced 6,051 housing units, offering
quality affordable housing for 19,678
Americans in 18 states around the country.
MLF has made 248 loans totaling over $72
million.
<PAGE>
James
Awad
of
AWAD asset management
How did the Fund perform?
The Calvert New Vision Small Cap Fund's
Class A shares returned 12.04%
for the year, underperforming the Russell
2000 Index due largely to the internet
phenomenon described below.
We could easily characterize the past 12
months as switchback! The close of 1998
benefited the Fund as financial markets
rebounded from the worldwide financial
turmoil, aided both by the actions of the
Federal Reserve Board, and by the Long Term
Capital bailout. In 1999, fund performance
was first adversely affected by a large flow
of funds out of the small cap arena, but
later benefited from investor perception
that worldwide growth was recovering. Toward
the end of the period, Fed interest rate
hikes had a detrimental effect on small cap
funds.
Ultimately, the rebalancing of the Russell
2000 Index as of June 30th, brought about by
the removal of several large internet
stocks, was a plus for the Fund, as it put
the performance of small cap, non-internet
stock in clearer perspective.
What were the market and economic events
that shaped the Fund's performance over the
course of the year?
During the six months ending at the close of
March, equity markets predominantly focused
on internet stocks due to their extreme
growth in market capitalization, and on
large cap technology stocks. It was a trend
fueled by individual investors and fund
managers alike, who contributed to a
tremendous
Calvert New Vision Small Cap Fund Portfolio
Statistics
September 30, 1999
Investment Performance
6 Months12 Months
ended ended
9/30/99 9/30/99
Class A
15.50% 12.04%
Class B
14.78% 10.66%
Class C
14.90% 11.05%
Class I
16.08% N/A
Russell 2000
Index TR 8.25%
19.07%
Lipper Small-Cap
Funds Average 12.29% 26.86%
Ten Largest Stock Holdings
% of Net A
ssets
Startek, Inc.
7.15%
Zebra Technologies Corp. 4.90%
Investors Financial Services Corp.
3.62%
Penton Media, Inc. 3.59%
Comdisco, Inc. 3.55%
Bradlees, Inc. 3.51%
New Horizons Worldwide, Inc.
3.31%
Corn Products Int'l, Inc.
3.29%
Shared Medical Systems Corp.
3.17%
Houghton Mifflin Co. 3.15%
Total
39.23%
Asset Allocation
Stocks
94%
Bonds
4%
Cash & Cash Equivalents 2%
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.
New subadvisor assumed management of the
Fund effective October 1997.
<PAGE>
Portfolio Statistics
September 30, 1999
Average Annual Total Returns
Class A Sh
ares
One year
6.72%
Since inception (5.55%)
(1/31/97)
Class B Sh
ares
One year
5.57%
Since inception (15.25%)
(4/1/98)
Class C Sh
ares
One year
10.96%
Since inception (4.43%)
(1/31/97)
Class I Sh
ares
Since inception 11.23%
(3/1/99)
Performance Comparison
Comparison of change in value of $10,000
investment. (Source: Lipper Analytical
Services, Inc.)
INSERT 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 indices 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.
upward price momentum. This naturally
created downward pressure in other sectors
as investors sold underperforming small cap
stocks.
In the spring, both internet and growth
stock volatility combined with the
anticipation of possible Fed rate hikes sent
nervous investors in search of calmer places
to invest -- and some of that money found
its way into the small cap sector. At the
same time, we began to see the beginnings of
a flattening out in the prices of large cap
technology stocks, which also freed up
capital
for investment in the small cap sector.
How has the tighter money stance by the Fed
affected markets, and where
does it go from here?
During the third quarter, equities of all
types experienced price pressure as
investors began to worry about the prospects
of rising interest rates and a hostile Fed.
Increasing prices of gold and oil, along
with signs of continued strong domestic
economic growth and recovery overseas,
created fears of a period of rising interest
rates, which is a negative for equity
valuations. The Fed did in fact raise
interest rates, in part to take back some of
the stimulus provided during the 1998
meltdown surrounding Russia, Asia, and
Long-Term Capital. We believe that
inflationary and deflationary forces are now
in balance and any further action by the Fed
will be minimal.
<PAGE>
Given this, what is your outlook for the
year ahead?
We believe that the basic building blocks of
the bull market remain intact, considering:
The tremendous competitiveness of American
corporations
Good economic growth
Low inflation
Budget surpluses
Minimal Fed intervention
Demand for common stocks by baby boom
ers and by foreign investors seeking dollar-
denominated assets
A shrinking supply of common stocks due
to takeovers
Moreover, investment fads -- including
internet stocks -- may be long-lasting, but
all ultimately succumb to rational capital
markets. Eventually,
undervalued stocks with good fundamentals
find their true worth. It is important to
note that small cap stocks did not
underperform large cap stocks during the
third quarter, and we believe that a
migration to small cap equities is underway.
This trend should be highly beneficial to
the value of the Fund, as it is filled with
growing companies selling at attractive
prices. As financial markets stabilize and
investors migrate to small cap issues, we
are confident the Fund will prosper.
October 27, 1999
Portfolio Statistics
September 30, 1999
Portfolio Characteristics
New VisionRussell
Small Cap 2000
Fund index
Number of Stocks 44 1938
Median Market
Capitalization ($bil) 0.76 0.70
(by portfolio weight)
Price/Earnings
Ratio 24.03
31.35
Earnings Per Share
Growth 22.45%
18.18%
Yield 0.86%
1.41% (return on capital investment)
Volatility Measures
New Vision Russell
Small Cap 2000
Fund index
Beta1 0.87
0.94
R-Squared2 0.34
0.46
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>
Report of Independent Accountants
To the Board of Trustees of The Calvert Fund
and Shareholders of Calvert New Vision Small
Cap Fund:
In our opinion, the accompanying statement
of net assets and the related statement of
operations, the statements of changes in net
assets and the financial highlights present
fairly, in all material respects, the
financial position of Calvert New Vision
Small Cap Fund, (one of the portfolios
comprising The Calvert Fund, hereafter
referred to as the "Fund"), at September 30,
1999, and the results of its operations, the
changes in its net assets and financial
highlights for each of the periods
presented, in conformity with accounting
principles generally accepted in the United
States. These financial statements and the
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
auditing standards generally accepted in the
United States, which require that we plan
and perform the audit to obtain reasonable
assurance about whether the financial
statements are free of material
misstatement. 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, 1999 by correspondence with
custodians and brokers, provide
a reasonable basis for the opinion expressed
above.
PricewaterhouseCoopers LLP
Baltimore, Maryland
November 10, 1999
<PAGE>
Statement of Net Assets
September 30, 1999
Equity Securities - 93.6% Shares
Value
Banks - 11.9%
Capital Crossing Bank * 105,000 $1,522,500
Doral Financial Corp. 134,000 1,792,250
Investors Financial Services Corp.
65,200 2,241,250 North Fork
Bancorporation 95,000 1,852,500
7,408,500
Communications - 4.8%
C-Cube Microsystems, Inc. * 40,000
1,740,000
Periphonics Corp. * 13,750 431,406
Transaction Network Service, Inc. *
20,000 785,000
2,956,406
Computer - Software and Services - 2.1%
Barra, Inc. * 61,500
1,291,500
Computer Technology - 0.2%
Transact Technologies, Inc. * 20,000
106,250
Consulting Services - 3.6%
Comdisco, Inc. 114,000 2,201,625
Data Processing - 5.2%
National Data Corp. 55,200 1,435,200
Sterling Software, Inc. * 90,000
1,800,000
3,235,200
Food - 6.1%
Corn Products International, Inc.
67,000 2,039,312
Smucker (J.M.) Co., Class B 95,300
1,751,137
3,790,449
Health Care Facilities - 0.0%
LTC Healthcare, Inc. * 6,400 12,000
Health Care Management Services - 2.5%
American Retirement Corp. * 43,000
421,938 Health Management Systems, Inc. *
241,000 1,144,750
1,566,688
Health Care Information Technology - 2.4%
Eclipsys Corp. * 101,575 1,460,141
Hotel / Motel - 0.0%
Lodgian, Inc. * 4,500 16,875
Insurance - 2.5%
Presidential Life Corp. * 90,000
1,541,250
Machinery and Engineering - 0.3%
Somanetics Corp. * 79,000 172,812
Tokheim Corp. * 100 894
173,706
<PAGE>
Equity Securities - Cont'd Shares
Value
Medical Information Systems - 3.2%
Shared Medical Systems Corp. 42,000
$1,963,500
Medical Products - 3.1%
Beckman Coulter, Inc. 42,000 1,895,250
Multi-Sector Companies - 4.8%
Annuity and Life Re (Holdings) Ltd.
68,000 1,691,500 Cunningham Graphics
International, Inc. *95,500 1,181,813
Excel Legacy Corp. * 25,000 104,687
2,978,000
Printers - 7.7%
Printronix, Inc. * 93,800 1,758,750
Zebra Technologies Corp., Class A *
66,750 3,035,039
4,793,789
Publishing - 9.2%
Houghton Mifflin Co. 48,000 1,950,000
Penton Media, Inc., Class A * 137,000
2,226,250 Wiley (John) & Sons, Inc., Class A
99,400 1,559,338
5,735,588
Real Estate Investment Trusts - 1.3%
LTC Properties, Inc. 76,200 809,625
Retail - 4.3%
Bradlees, Inc. * 136,000 2,176,000
U.S. Vision, Inc. * 118,700 504,475
2,680,475
Service Organizations - 11.9%
Lanvision Systems, Inc. * 165,200
154,875
New Horizons Worldwide, Inc. * 129,375
2,053,828
Startek, Inc. * 80,550 4,430,250
Teletech Holdings, Inc. * 50,000
712,500
7,351,453
Telecommunications - 0.3%
Nextlink Communications, Inc., Class A *
4,000 207,375
Transportation - 1.8%
Air Express International Corp. 20,000
453,750 Iron Mountain, Inc. * 20,000
677,500
1,131,250
Vitamins and Nutritional Products - 1.9%
NBTY, Inc. * 157,500 1,200,938
Wireless Equipment - 2.5%
American Tower Corp., Class A * 80,000
1,565,000
Total Equity Securities (Cost $53,907,836)
58,072,833
<PAGE>
Principal
Corporate Obligations - 2.9% Amount
Value
American Retirement Corp., 5.75%, 10/1/2002
$1,000,000 $720,840
Angeion Corp., 7.50%, 4/15/2003 #
1,000,000 520,000 Assisted Living
Concepts, 6.00%, 11/1/2002 #
1,000,000 562,500
Total Corporate Obligations (Cost
$3,019,121) 1,803,340
High Social Impact Investments - 0.6%
Dorchester Bay Economic Development Corp.,
4.50%, 6/30/2000 + #
100,000 96,012 Mercy Loan Fund,
4.50%, 1/13/2001 + #200,000 196,824 Working
Capital Management, 4.00%, 9/30/2002 + #
50,000 47,181
Total High Social Impact Investments (Cost
$350,000) 340,017
Repurchase Agreements - 2.6%
State Street Bank: 5.31%, dated 9/30/99, due
10/1/99
(Collateral: $1,649,038, FNMA Discount Note,
7/7/2000)
1,600,000 1,600,000
Total Repurchase Agreements (Cost
$1,600,000) 1,600,000
TOTAL INVESTMENTS (Cost $58,876,957) -
99.7% 61,816,190
Assets in excess of liabilities - 0.3%
177,301
Net Assets - 100% $61,993,491
Net Assets Consist Of:
Paid-in capital applicable to the following
shares of beneficial
interest; unlimited number of no par shares
authorized:
Class A: 3,925,517 shares outstanding
$61,452,807
Class B: 113,200 shares outstanding
1,523,127
Class C: 468,460 shares outstanding
7,254,489
Class I: 96,821 shares outstanding
1,163,340
Accumulated net realized gain (loss) on
investments (12,339,505)
Net unrealized appreciation (depreciation)
on investments 2,939,233
Net Assets $61,993,491
Net Asset Value Per Share
Class A (based on net assets of $52,961,024)
$13.49
Class B (based on net assets of $1,503,953)
$13.29
Class C (based on net assets of $6,214,680)
$13.27
Class I (based on net assets of $1,313,834)
$13.57
+ Restricted securities represents 0.6% of
net assets for the Fund.
* Non-income producing.
# This security was valued by the Board of
Directors. See Note A.
See notes to financial statements.
<PAGE>
Statement of Operations
year ended september 30, 1999
Net Investment Income
Investment Income
Interest Income $564,835
Dividend income (net of foreign taxes of
$3,362 ) 283,870
Total investment income
848,705
Expenses
Investment advisory fee
547,404
Transfer agency fees and expenses
314,286
Distribution Plan expenses:
Class A 145,381
Class B 12,166
Class C 69,424
Trustee's fees and expenses
7,072
Administrative fees 123,179
Accounting fees 21,304
Custodian fees 26,409
Registration fees 46,597
Reports to shareholders
44,136
Professional fees 18,349
Miscellaneous 24,639
Total expenses 1,400,346
Reimbursement from Advisor:
Class A (18,757)
Class B (6,628)
Class C (2,272)
Class I (7,404)
Fees paid indirectly
(183,564)
Net expenses 1,181,721
Net Investment Income (Loss)
(333,016)
Realized and Unrealized Gain (Loss) on
Investments
Net realized gain (loss)
(8,698,475)
Change in unrealized appreciation or
(depreciation) 16,538,405
Net Realized and Unrealized Gain
(Loss) on Investments 7,839,930
Increase (Decrease) in Net Assets
Resulting From Operations
$7,506,914
See notes to financial statements.
<PAGE>
Statements of Changes in Net Assets
Years Ended
September 30,Sept
ember 30,
Increase (Decrease) in Net Assets
1999 1998
Operations
Net investment income (loss) $(333,016)
$(202,192)
Net realized gain (loss) (8,698,475)
(3,401,229)
Change in unrealized appreciation or
(depreciation)
16,538,405 (11,074,307)
Increase (Decrease) in Net Assets
Resulting From Operations 7,506,914
(14,677,728)
Distributions to shareholders from
Net investment income:
Class A Shares -- (23,622)
Net realized gain:
Class A Shares -- (204,302)
Class C Shares -- (27,040)
Total distributions -- (254,964)
Capital share transactions:
Shares sold:
Class A Shares 14,204,26114,788,
873
Class B Shares 1,514,296 676,583
Class C Shares 1,751,372 2,286,844
Class I Shares 1,481,253 --
Shares issued from merger:
Class A Shares -- 79,719,091
Class C Shares -- 10,469,904
Reinvestment of distributions:
Class A Shares -- 207,755
Class C Shares -- 26,430
Shares redeemed:
Class A Shares (29,811,556)(22,9
01,575)
Class B Shares (633,676)(25,997)
Class C Shares (3,093,613)(4,508
,337)
Class I Shares (310,855) ----
Total capital share transactions
(14,898,518) 80,739,571
Total Increase (Decrease) in Net Assets
(7,391,604) 65,806,879
Net Assets
Beginning of year 69,385,0953,578,216
End of year $61,993,491
$69,385,095
See notes to financial statements.
<PAGE>
Statements of Changes in Net Assets
Years Ended
September 30,Sept
ember 30,
Capital Share Activity 1999 1998
Shares sold:
Class A Shares 1,108,786 985,936
Class B Shares 117,732 45,527
Class C Shares 115,503 152,487
Class I Shares 120,487 ----
Shares issued from merger:
Class A Shares -- 5,456,474
Class C Shares -- 718,100
Reinvestment of distributions:
Class A Shares -- 14,127
Class C Shares -- 1,810
Shares redeemed:
Class A Shares (2,312,642)(1,535
,502)
Class B Shares (48,067) (1,992)
Class C Shares (241,125)(298,683)
Class I Shares (23,666) ----
Total capital share activity (1,162,992)
5,538,284
See notes to financial statements.
<PAGE>
Notes to Financial Statements
Note A -- Significant Accounting Policies
General: The Calvert New Vision Small Cap
Fund (the "Fund"), a series of The Calvert
Fund, is registered under the Investment
Company Act of 1940
as a diversified, open-end management
investment company. The operation
of each series is accounted for separately.
The Fund offers four classes of shares of
beneficial interest. 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 beneficial interest. 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.
On December 12, 1997, the net assets of
Calvert Strategic Growth Fund were merged
into the Fund. The acquisition was
accomplished by a tax-free exchange of
6,174,574 shares of the Fund (valued at
$90,188,995) for the 5,697,864 shares of the
Calvert Strategic Growth Fund outstanding at
December 12, 1997. The Calvert Strategic
Growth Fund's net assets at that date,
including $2,998,545 of unrealized
depreciation and $899,711 of undistributed
net losses were combined with those of the
Fund. The aggregate net assets of the Fund
and Calvert Strategic Growth Fund
immediately before the acquisition were
$4,817,712 and $90,188,995, respectively.
Security Valuation: Securities listed or
traded on a national securities exchange are
valued at the last reported sale price.
Unlisted securities and listed securities
for which the last sale price is unavailable
are valued at the most recent bid price or
based on a yield equivalent obtained from
the securities' market maker. The Fund may
invest in securities whose resale is subject
to restrictions. Investments 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
from the values that would have been used
had a ready market of the investments
existed, and the differences could be
material.
At September 30, 1999, $1,422,517, or 2.3%
of net assets, were valued by the Board of
Trustees.
<PAGE>
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.
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. Interest
income, accretion of discount and
amortization of premium are recorded on an
accrual basis. Investment income and
realized and unrealized gains and losses are
allocated to separate classes
of shares based upon the relative net assets
of each class. Expenses arising in
connection with a class are charged directly
to that class. Expenses common
to the classes are allocated to each class
in proportion to their relative net assets.
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 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 qualify as a
regulated investment company under the
Internal Revenue Code and to distribute
substantially all of its earnings.
<PAGE>
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
Trustees of the Fund. For its services, the
Advisor receives a monthly fee based on an
annual rate of .90% through February 28,
1999, and .75% effective March 1, 1999,
based on the Fund's average daily net
assets. Under the terms of the agreement,
$42,749 was payable at year end.
The Advisor contractually reimbursed the
Fund for expenses of $35,061.
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
terms of the agreement, $13,089 was payable
at year 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 .25%, 1.00% and 1.00% annually of
average daily net assets of each Class A,
Class B and Class C, respectively. Class I
does not have Distribution Plan expenses.
Under the terms of the agreement, $17,615
was payable at year end.
The Distributor received $38,700 as its
portion of the 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 fees of
$77,827 for the year ended September 30,
1999. Under the terms of the agreement,
$5,676 was payable at year end. National
Financial Data Services, Inc., is the
transfer and dividend disbursing agent.
The Calvert Social Investment Foundation
("CSI Foundation") now provides certain
administrative services to the Fund. These
services include a due diligence review for
each potential organization which is being
considered for a high social impact
investment ("HSI investment"). The services
also include an annual review thereafter,
investment monitoring, quarterly reporting
to the Fund Board, notification of any event
of information that may affect the value of
an investment, and other incidental
services. For providing such services, the
CSI Foundation receives an annual fee, paid
quarterly of 1.00% of the Fund's average
daily net assets invested in HSI
investments.
Each Trustee of the Fund who is not
affiliated with the Advisor receives an
annual fee of $20,500 plus $1,500 for each
Board and Committee meeting attended.
Trustees fees are allocated to each of the
funds in the series served.
<PAGE>
Note C -- Investment Activity
During the year, purchases and sales of
investments, other than short-term
securities, were $41,068,264 and
$49,173,848, respectively.
The cost of investments owned at September
30, 1999 was substantially the same for
federal income tax and financial reporting
purposes. Net capital loss carryforwards,
for federal income tax purpose, of
$4,452,914 at September 30, 1999 may be
utilized to offset current and future
capital gain until expiration through
September 30, 2007. Net unrealized
depreciation aggregated $ 2,939,233, of
which $10,280,296 related to appreciated
securities and $7,341,063 related to
depreciated securities.
Note D -- Line of Credit
A financing agreement is in place with all
Calvert Group Funds (except for Calvert
Social Investment Fund Managed Index
Portfolio) 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 September
30, 1999.
<PAGE>
Financial Highlights
Periods Ended
September 30,September 30,Sept
ember 30,
Class A Shares 1999 1998 1997^
Net asset value, beginning$12.04 $15.65
$15.00
Income from investment operations
Net investment income (loss)(.05) (.02)
(.05)
Net realized and unrealized gain (loss)
1.50 (3.55) .70
Total from investment operations
1.45 (3.57) .65
Distributions from
Net realized gain -- (.04) --
Total distributions-- (.04) --
Total increase (decrease) in net asset value
1.45 (3.61) .65
Net asset value, ending$13.49$12.04 $15.65
Total return* 12.04% (22.86%)
4.33%
Ratios to average net assets:
Net investment income (loss)(.39%)(.17%)
(.71%) (a)
Total expenses 1.96% 1.88% 4.72% (a)
Expenses before offsets 1.93% 1.82%
1.36% (a)
Net expenses 1.66% 1.71% .90% (a)
Portfolio turnover 68% 68% 196%
Net assets, ending (in thousands) $52,961
$61,765 $3,260
Number of shares outstanding,
ending (in thousands)3,9265,129 208
Periods Ended
September 30,Sept
ember 30,
Class B Shares 1999 1998#
Net asset value, beginning $12.01
$16.18
Income from investment operations
Net investment income (loss) (.15)
(.05)
Net realized and unrealized gain (loss)
1.43 (4.12)
Total from investment operations
1.28 (4.17)
Total increase (decrease) in net asset value
1.28 (4.17)
Net asset value, ending $13.29 $12.01
Total return* 10.66%
(25.77%)
Ratios to average net assets:
Net investment income (loss) (1.68%)
(1.39%) (a)
Total expenses 3.87% 7.68% (a)
Expenses before offsets 3.33%
3.40% (a)
Net expenses 2.93% 2.99% (a)
Portfolio turnover 68% 68%
Net assets, ending (in thousands)
$1,504 $523
Number of shares outstanding, ending (in
thousands) 113 44
<PAGE>
Financial Highlights
Periods Ended
September 30,September 30,Sept
ember 30,
Class C Shares 1999 1998 1997^
Net asset value, beginning$11.95 $15.62
$15.00
Income from investment operations
Net investment income (loss)(.22) (.15)
(.10)
Net realized and unrealized gain (loss)
1.54 (3.48) .72
Total from investment operations
1.32 (3.63) .62
Distributions from
Net realized gain -- (.04) --
Total distributions-- (.04) --
Total increase (decrease) in net asset value
1.32 (3.67) .62
Net asset value, ending$13.27$11.95 $15.62
Total return* 11.05% (23.31%)
4.13%
Ratios to average net assets:
Net investment income (loss)(1.27%)(1.15%)
(.95%)(a)
Total expenses 2.87% 2.94% 10.91%(a)
Expenses before offsets 2.84% 2.78%
1.47%(a)
Net expenses 2.53% 2.64% 1.15%(a)
Portfolio turnover 68% 68% 196%
Net assets, ending (in thousands) $6,215
$7,097 $318
Number of shares outstanding,
ending (in thousands)468 594 20
Period Ended
September
30,
Class I Shares 1999^^
Net asset value, beginning
$12.20
Income from investment operations
Net investment income (loss)
.03
Net realized and unrealized gain (loss)
1.34
Total from investment operations
1.37
Total increase (decrease) in net asset value
1.37
Net asset value, ending $13.57
Total return*
11.23%
Ratios to average net assets:
Net investment income (loss)
.36% (a)
Total expenses 1.87% (a)
Expenses before offsets
.93% (a)
Net expenses .82% (a)
Portfolio turnover 68%
Net assets, ending (in thousands)
$1,314
Number of shares outstanding, ending (in
thousands) 97
(a) Annualized
* Total return does not reflect deduction of
any front-end or deferred sales charge.
^ From January 31, 1997 inception.
# From April 1, 1998 inception.
^^ From March 1, 1999 inception.
<PAGE>
Calvert Group and the Year 2000
Three years ago, Calvert Group recruited a
task force to address the Y2K compliance
problem. Headed by our Vice President of
Information Technology, the task force
developed a comprehensive Year 2000
Initiative that addressed all software and
hardware systems that could possibly be
susceptible to year-2000 problems.
Today we can report that we have completed
100 percent of our year-2000 Initiative and
are currently monitoring our systems to
ensure that they will remain compliant.
These are just some of the steps Calvert
Group has taken over the past 36 months:
Inventory. To safeguard our inventory
systems we documented all hardware and sof
tware systems used by Calvert Group.
Assessment. Our system engineers made
an extensive
evaluation of the readiness of each system
and its susceptibility to year-2000
problems.
Remediation. We have modified
software codes, upgraded hardware, improved
data interfaces and applied upgrades.
Testing. We have deployed year-2000
test environments and executed test plans
with dates from 1999 through 2000 and
beyond.
Implementation. We have released our
modified software, deployed upgraded
hardware and coordinated with business
partners where data interfaces have changed.
Vendor Compliance. All significant
third-party vendors, including subadvisors,
have been contacted and reported Y2K
compliance.
Finally, Calvert Group will re-test
continuously through the remainder of
1999 and into 2000 to ensure that operating
platforms, third-party software, and
interfaces to other systems remain stable
throughout the rollover to the year 2000.
If you have any questions regarding the Year
2000 issue, please send e-mail
to [email protected] or call
1.800.368.2748.
Calvert Group's Web site, www.calvert.com
and our Voice Response Unit
(800-368-2745) will be operational Saturday,
January 1, 2000 and completely updated to
include all account activity through year-
end 1999. We encourage you to use either
system to verify the status of your account.
A customer service representative will be
available to assist you Monday,
January 3, 2000.
<PAGE>
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<PAGE>
