September 30, 2000
annual
report
Calvert income fund
<PAGE>
Table
of
Contents
President's Letter
1
Portfolio
Manager Remarks
2
Report of Independent Public Accountants
4
Schedule
of Investments
5
Statement
of Assets and Liabilities
8
Statement
of Operations
9
Statements
of Changes in
Net Assets
10
Notes to
Financial Statements
12
Financial Highlights
16
Dear Shareholders:
While near-term volatility in equity and bond markets has set a tone of
challenge for investors and fund managers this past year, caution and discipline
remain a keynote of our manager's investment strategies. We are confident that
these will bring their own reward in the long term.
The state of the US economy seems to indicate that we have reason to be
optimistic despite recently falling market indices. For the time being, the
specter of inflation appears to be nothing more than that, and the underlying
economic fundamentals are solid. Indeed, the Fed, which left rates unchanged at
its last meeting, believes that inflation remains under control. Somewhat slower
economic growth will continue to keep prices in check - and there have been
indications of cooling in most traditional sectors of the economy. Therefore,
economic growth is expected to slow in the coming months and year.
Growth in the US economy coupled with price stability will continue to influence
the price and yield of Government bonds. Rising oil prices, temporarily curbed
by the recent decision to release 30m barrels from our Strategic Petroleum
Reserve, would almost certainly push up bond yields.
Also, the decision made by the US, Europe, and Japan to shore up the Euro could
have domestic consequences. While a weaker dollar could mean stronger balance
sheets for multinational companies, the stream of money from Europe into the US
economy could be reversed, adversley affecting equity and corporate bond prices.
Time will tell how events will play out. For the reasonable investor, discipline
and the need to make informed decisions are as important as ever before. As
always, we encourage you to make decisions based on your financial obligations
and tolerance for risk. Your financial professional can suggest strategies that
can keep you on track to meet your objectives.
We appreciate your investment in Calvert Group funds and look forward to working
with you to achieve your financial goals.
Sincerely,
Barbara J. Krumsiek
President and CEO
October 30, 2000
<PAGE>
Portfolio Statistics
September 30, 2000
Investment Performance
6 Months 12 Months
ended ended
9/30/00 9/30/00
Class A 1.88% 6.11%
Class B 1.44% 4.95%
Class I 2.16% 6.48%
Lehman Aggregate
Bond Index TR 4.81% 6.99%
Lipper Corporate
Debt Funds
BBB-Rated Average 3.03% 4.98%
Maturity Schedule
Weighted Average
9/30/00 9/30/99
19 years 19 years
SEC Yields
30 days ended
9/30/00 9/30/99
Class A 8.25% 6.41%
Class B 7.47% 5.12%
Class C 6.73% N/A
Class I 9.30% 7.22%
Investment performance does not reflect the
deduction of any front-end or deferred sales charge.
TR represents total return.
Source: Lipper Analytical Services, Inc.
Greg Habeeb
of CAlvert Asset Management Company
How did the Fund perform relative to its peer group?
The Income Fund's Class A shares returned 6.11% for the 12 months ended
September 30, 2000. This compares to a 12-month return of 4.98% for the Lipper
BBB Corporate Index and 6.99% for the Lehman Aggregate Bond Index. The Income
Fund has continued to outperform its benchmarks over the 3- and 5-year periods.
What were the driving forces in the credit markets?
The credit markets in 2000 have been characterized by extreme spread volatility
and a resulting overall widening trend of yield spreads to Treasuries resulting
in lower prices relative to Treasury securities. This volatility is
attributable to several factors including:
1) A treasury buy-back program that has wreaked havoc on the shape of the
benchmark Treasury curve.
2) Increased risk averse policies of the dealer community which started in 1998
and have resulted in smaller dealer inventories and less support for the credit
markets.
3) Consolidation of investment banks, further eroding support for the credit
markets.
4) Highly volatile and declining stock market prices polluting investor
sentiment.
5) Both bond and stock investors who have become more risk averse.
6) A dramatic increase in oil prices.
<PAGE>
What was your strategy?
We continue to be overallocated in non-Treasuries. We have added exposure to
the mortgage market and reduced corporate bond exposure. Mortgages were
recently trading at historically wide levels. We took advantage of this
opportunity to upgrade the quality of the portfolio. The average credit rating
of the portfolio has increased from BBB+ to A+. Because of the weakening of
non-Treasuries our performance has suffered recently as even the highest quality
credits such as agencies have had severe declines in prices relative to Treasury
bonds. We are continuing the corporate bond to mortgage reallocation.
What should investors expect in the coming months?
We expect ongoing turmoil in the capital markets. The effects of higher oil
prices and a declining stock market will continue to make bond markets volatile.
These effects may lead to continued underperformance of corporate bonds. As a
result, we have reduced our exposure to corporate bonds by 30% and increased our
exposure to the AAA sector accordingly.
October 30, 2000
Portfolio Statistics
September 30, 2000
Average Annual Total Returns
Class A Shares
One year 2.04%
Five year 7.51%
Ten year 8.56%
Since inception 9.59%
(10/12/82)
Class B Shares
One year 0.89%
Since inception 2.56%
(8/1/99)
Class C Shares
Since inception 0.58%
(8/1/00)
Class I Shares
One year 6.48%
Since inception 7.78%
(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 Public Accountants
To the Board of Trustees of The Calvert Fund and Shareholders of Calvert Income
Fund:
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments of Calvert Income Fund, (one of the portfolios
comprising The Calvert Fund, hereafter referred to as the "Fund"), as of
September 30, 2000, and the related statement of operations, the statement of
changes in net assets, and the financial highlights for the year then ended.
These financial statements and financial highlights are the responsibility of
the Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audit. The statement
of changes in net assets for the year ended September 30, 1999 and the financial
highlights for each of the four years in the period ended September 30, 1999 of
the Fund, were audited by other auditors, whose report dated November 10, 1999,
expressed an unqualified opinion on those statements.
We conducted our audit in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
confirmation of securities owned as of September 30, 2000, by correspondence
with the custodian, the broker, and application of alternative procedures with
respect to unsettled securities transactions. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Calvert Income Fund as of September 30, 2000, the results of its operations, the
changes in its net assets, and the financial highlights for the year then ended,
in conformity with accounting principles generally accepted in the United
States.
ARTHUR ANDERSEN LLP
Philadelphia, Pennsylvania
November 15, 2000
<PAGE>
Schedule of Investments
September 30, 2000
Principal
Debt Securities - 99.7% Amount Value
Corporate Bonds - 59.8%
Abbey National plc, 8.963%, 12/29/49 $1,550,000 $1,553,726
Ahold Finance USA, Inc., 8.25%, 7/15/10 3,500,000 3,542,945
Atlantic Mutual Insurance Co., 8.15%, 2/15/28 3,050,000 2,243,550
Bombardier Capital Mortgage Securities, 8.29%, 6/15/30
5,000,000 4,979,900
CVS Credit Lease-Backed Pass-Through Certificates,
9.35%, 1/10/23 5,000,000 4,953,600
Computer Associates International, Inc.,
6.25%, 4/15/03 10,000,000 9,574,400
6.375%, 4/15/05 1,688,000 1,568,101
Conseco Financial Corp., 10.25%, 6/1/02 6,000,000 4,380,000
Conseco Financial Trust III,
8.70%, 11/15/26 3,500,000 1,505,000
8.796%, 4/1/27 1,500,000 645,000
Conseco, Inc.,
6.40%, 6/15/01 2,000,000 1,800,000
8.75%, 2/9/04 8,000,000 5,600,000
6.80%, 6/15/05 8,860,000 5,847,600
Covad Commercial Group, Inc., 12.00%, 2/15/10 2,000,000 1,480,000
Dillards, Inc., 6.39%, 8/1/13 500,000 433,330
Earthgrains Co., 8.375%, 8/1/03 2,000,000 2,005,100
Finova Capital Corp.,
6.375%, 10/15/00 5,000,000 4,950,000
6.824%, 3/9/01 3,000,000 2,610,000
6.12%, 5/28/02 1,000,000 820,000
6.125%, 3/15/04 3,350,000 2,462,250
7.25%, 11/8/04 1,000,000 745,000
Ford Motor Co., 7.45%, 7/16/31 15,000,000 13,886,100
GenAmerica Capital I, 8.525%, 6/30/27 22,950,000 21,157,834
Golden State Holdings, 7.125%, 8/1/05 4,166,000 3,838,302
Greenpoint Bank, 9.25%, 10/1/10 28,000,000 27,945,400
HSB Capital I, 7.644%, 7/15/27 3,000,000 2,808,780
Imperial Bank, 8.50%, 4/1/09 8,100,000 7,385,661
Interpool Capital Trust, 9.875%, 2/15/27 4,500,000 3,149,685
Interpool, Inc.,
6.625%, 3/1/03 4,000,000 3,616,044
7.20%, 8/1/07 1,250,000 990,525
7.35%, 8/1/07 1,500,000 1,198,995
Liberty Mutual Insurance Co., 7.697, 10/15/2097
16,050,000 11,996,091
Louisiana Pacific Corp., 8.875%, 8/15/10 10,000,000 9,949,140
Loyola University of Chicago, 7.65%, 7/18/03 5,000,000 5,046,700
Lubermens Mutual Casualty Insurance Co., 8.30%, 12/1/37
4,975,000 3,963,185
Manufacturers & Traders Trust Co., 8.00%, 10/1/10
4,000,000 4,005,400
Mark IV Industries Inc., 7.50%, 9/1/07 1,000,000 780,562
Markel Capital Trust I, 8.71%, 1/1/46 7,660,000 6,093,683
NIH Neuroscience Center, 6.878%, 2/15/19 2,519,387 2,348,194
Old Kent Bank, 7.75%, 8/15/10 8,000,000 8,005,544
Osprey Trust, 7.797%, 1/15/03 20,000,000 20,019,600
<PAGE>
Principal
Debt Securities - Cont'd Amount Value
PPL Montana LLC, 8.903%, 7/2/20 $5,000,000 $5,030,790
PSEG Energy Holdings, 10.00%, 10/1/09 3,000,000 3,235,200
Renaissancere Capital Trust, 8.54%, 3/1/27 3,000,000 2,417,460
Residential Asset Security Mortgage, 7.59%, 12/25/28
3,750,000 3,762,891
Riggs Capital Trust, 8.625%, 12/31/26 7,000,000 5,354,090
Skandinaviska Enskilda Banken, 8.125%, 9/6/49 13,525,000 13,136,738
Sovereign Bancorp, Inc., 12.18%, 6/30/20 13,000,000 13,248,991
Union Bank Norway, 7.35%, 12/31/49 7,000,000 6,899,760
Western Resources, Inc., 6.25%, 8/15/03 3,000,000 2,663,220
Xerox Capital Trust I, 8.00%, 2/1/27 20,955,000 15,080,056
Total Corporate Bonds (Cost $294,864,293) 292,714,123
Mortgage Securities - 12.3%
Federal National Mortgage Association,
6.50%, 7/1/14, 8,500,000 8,335,270
7.00%, 3/1/15, 6,000,000 5,966,280
7.00%, 7/1/15, 11,000,003 10,938,183
7.00%, 2/1/30, 2,000,001 1,958,761
7.50%, 9/1/30, 10,001,000 9,979,098
Federal National Mortgage Association, 7.50%, 12/1/30
12,000,000 11,973,720
Government National Mortgage Association,
11.00%, 10/15/15, 998 1,081
Government National Mortgage Association, 7.00%, 12/15/30
11,000,000 10,831,590
Total Mortgage Securities (Cost $59,704,864) 59,983,983
Taxable Municipal Bonds - 3.4%
Alabama Incentives Financial Authority Revenue VRDN,
6.65%, 10/1/29 4,300,000 4,300,000
Bexar County Texas Health Facility Development Revenue
VRDN, 6.60%, 2/1/22, 2,700,000 2,700,000
Clark County Nevada IDA Revenue VRDN, 6.65%, 12/1/38
1,715,000 1,715,000
Oakland-Alameda County California Coliseum Authority
Revenue VRDN, 6.55%, 2/1/11 1,200,000 1,200,000
Pasadena California Public Finance Authority Lease Revenue
VRDN, 6.61%, 6/1/25 300,000 300,000
Philadelphia PA IDA Revenue Bonds, 6.488%, 6/15/04
2,393,783 2,368,720
Roman Catholic Diocese Raleigh North Carolina
Revenue VRDN, 6.67%, 4/1/15 4,000,000 4,000,000
Total Taxable Municipal Bonds (Cost $16,549,909) 16,583,720
Taxable Variable Rate Demand Notes - 5.9%
Community Health Systems, 6.70%, 10/1/03 1,400,000 1,400,000
Cornerstone Funding Corp, 6.65%, 7/5/20 8,373,000 8,373,000
Maple Industries, Inc., 6.67%, 4/1/15 4,100,000 4,100,000
RM Greene, Inc., 6.60%, 5/1/30 4,000,000 4,000,000
RaceTrac Capital LLC, 6.67%, 9/1/20 11,200,000 11,200,000
Taxable Variable Rate Demand Notes (Cost $29,073,000) 29,073,000
<PAGE>
Principal
Debt Securities - Cont'd Amount Value
U.S.Treasury - 10.3%
U.S. Treasury Bonds, 6.125%, 8/15/29 $37,350,000 $38,151,905
U.S. Treasury Notes, 5.75%, 8/15/10 12,350,000 12,299,859
Total U.S. Treasury (Cost $50,394,507) 50,451,764
Repurchase Agreements - 8.0%
Donaldson, Lufkin & Jenrette: 6.60%, dated 9/29/00, due 10/2/00
(Collateral: $39,834,450 FNMA, 6.47%, 5/15/02)
39,000,000 39,000,000
Total Repurchase Agreements (Cost $39,000,000) 39,000,000
Total Debt Securities (Cost $489,586,573) 487,806,590
Equity Securities - 0.7% Shares
Preferred Stocks - 0.7%
First Republic Preferred Capital Corp., 10.50% 3,000 2,670,000
Highwood Properties, Inc., Series A, Preferred, 8.625%
1,055 765,687
Total Equity Securities (Cost $4,076,370) 3,435,687
TOTAL INVESTMENTS (Cost $493,662,943) - 100.4% 491,242,277
Other assets and liabilities, net - (0.4%) (1,754,539)
Net Assets - 100% $489,487,738
Abbreviations:
FNMA: Federal National Mortgage Association
IDA: Industrial Development Authority
LLC: Limited Liability Company
VRDN: Variable Rate Demand Notes
See notes to financial statements.
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
September 30, 2000
Assets Value
Investments in securities, at value - see accompanying schedule $491,242,277
Cash 6,007
Receivable for securities sold 149,442,101
Receivable for shares sold 5,794,716
Interest and dividends receivable 6,251,312
Other assets 42,655
Total assets 652,779,068
Liabilities
Payable to bank 1,666,160
Payable for securities purchased 158,738,914
Payable for shares redeemed 2,275,925
Payable to Calvert Asset Management Co., Inc. 234,057
Payable to Calvert Administrative Services Company 108,983
Payable to Calvert Shareholder Services, Inc. 6,789
Payable to Calvert Distributors, Inc. 75,202
Accrued expenses and other liabilities 185,300
Total liabilities 163,291,330
Net Assets $489,487,738
Net Assets Consist of:
Paid in capital applicable to the following shares of beneficial interest,
unlimited number of no par shares authorized:
Class A: 26,571,752 shares outstanding $444,084,164
Class B: 1,899,438 shares outstanding 31,581,387
Class C: 70,723 shares outstanding 1,176,243
Class I: 838,887 shares outstanding 13,956,252
Undistributed net investment income 47,644
Accumulated net realized gain (loss) on investments 1,062,714
Net unrealized appreciation (depreciation) on investments (2,420,666)
Net Assets $489,487,738
Net Asset Value Per Share
Class A (based on net assets $442,709,232) $16.66
Class B (based on net assets $31,645,959) $16.66
Class C (based on net assets $1,178,601) $16.67
Class I (based on net assets $13,953,946) $16.63
See notes to financial statements.
<PAGE>
Statement of Operations
Year Ended September 30, 2000
Net Investment Income
Investment Income:
Interest income $21,383,821
Dividend income 404,808
Total investment income 21,788,629
Expenses:
Investment advisory fee 1,008,012
Administrative fees 730,395
Transfer agency fees and expenses 436,487
Distribution plan expenses:
Class A 345,517
Class B 124,651
Class C 856
Trustees' fees and expenses 27,211
Custodian fees 140,374
Registration fees 165,466
Reports to shareholders 38,904
Professional fees 18,283
Accounting fees 64,556
Miscellaneous 8,395
Total expenses 3,109,107
Reimbursement from Advisor:
Class I (6,660)
Fees paid indirectly (69,109)
Net expenses 3,033,338
Net Investment Income 18,755,291
Realized and Unrealized Gain (Loss) on Investments
Net realized gain 1,325,389
Change in unrealized appreciation (depreciation) (1,399,212)
Net Realized and Unrealized Gain
(Loss) on Investments (73,823)
Increase (Decrease) in Net Assets
Resulting From Operations $18,681,468
See notes to financial statements.
<PAGE>
Statements of Changes in Net Assets
Year Ended Year Ended
September 30, September 30,
Increase (Decrease) in Net Assets 2000 1999
Operations:
Net investment income $18,755,291 $3,473,725
Net realized gain (loss) 1,325,389 3,031,934
Change in unrealized appreciation or (depreciation)
(1,399,212) (1,125,125)
Increase (Decrease) in Net Assets
Resulting From Operations 18,681,468 5,380,534
Distributions to shareholders from
Net investment income:
Class A Shares (17,197,525) (3,366,927)
Class B Shares (838,374) (5,526)
Class C Shares (8,271) -
Class I Shares (682,364) (104,476)
Net realized gain:
Class A Shares (1,859,283) (2,096,000)
Class B Shares (64,644) -
Class I Shares (97,419) -
Total distributions (20,747,880) (5,572,929)
Capital share transactions:
Shares sold:
Class A Shares 413,528,480 61,186,513
Class B Shares 30,363,169 1,231,561
Class C Shares 1,172,583 -
Class I Shares 9,765,596 6,555,652
Reinvestment of distributions:
Class A Shares 15,354,511 4,576,723
Class B Shares 718,786 4,841
Class C Shares 4,360 -
Class I Shares 778,783 104,476
Shares redeemed:
Class A Shares (75,849,643) (15,371,155)
Class B Shares (726,250) (10,720)
Class C Shares (700) -
Class I Shares (2,991,974) (256,281)
Total capital share transactions 392,117,701 58,021,610
Total Increase (Decrease) in Net Assets 390,051,289 57,829,215
Net Assets
Beginning of year 99,436,449 41,607,234
End of year (including undistributed net investment
income of $47,644 and $31,798, respectively.)
$489,487,738 $99,436,449
See notes to financial statements.
<PAGE>
Statements of Changes in Net Assets
Year Ended Year Ended
September 30, September 30,
Capital Share Activity 2000 1999
Shares sold:
Class A Shares 24,839,614 3,580,320
Class B Shares 1,827,647 72,520
Class C Shares 70,503 -
Class I Shares 594,146 386,659
Reinvestment of distributions:
Class A Shares 926,251 271,265
Class B Shares 43,454 283
Class C Shares 262 -
Class I Shares 46,907 6,120
Shares redeemed:
Class A Shares (4,565,615) (902,773)
Class B Shares (43,838) (628)
Class C Shares (42) -
Class I Shares (179,846) (15,099)
Total capital share activity 23,559,443 3,398,667
See notes to financial statements.
<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 four classes of shares of beneficial
interest. Class A shares are sold with a maximum front-end sales charge of
3.75%. 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. Effective August 1,
2000, the Fund began to offer Class C 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 levels of expenses than Class A shares. 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. 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 from
the values that would have been used had a ready market for the investments
existed, and the differences could be material.
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 securi-
<PAGE>
ties 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 witha 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 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 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.
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
taxable 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
.40% of the Fund's average daily net assets.
The Advisor contractually reimbursed the Fund for expenses of $6,660 for the
year ended Septemeber 30, 2000.
Calvert Administrative Services Company, an affiliate of the Advisor, provides
administrative services to the Fund for an annual fee, payable monthly. Classes
A, B, and C 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, B
and C 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%, 1.0% and 1.0% annually of the Fund's average daily net assets of
Class A, B and C, respectively. Class I does not have Distribution plan
expenses.
The Distributor received $404,056 as its portion of the commissions charged on
sales of the Fund's shares for the year ended September 30, 2000.
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 $73,746 for the year ended September 30, 2000. 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 $7,892,516,943 and $7,494,807,192,
respectively.
The cost of investments owned at September 30, 2000 for federal income tax
purposes was $497,628,892. Net unrealized depreciation aggregated $6,386,615, of
which $3,048,831 related to appreciated securities and $9,435,446 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,
2000, the Portfolio effected transactions with other Calvert Portfolios, which
resulted in net realized losses on sales of securities of $590,169. These
purchases and sales transactions, executed at independently derived prices
pursuant to Rule 17a-7 under the Investment Company Act of 1940, were
$370,478,570 and $313,068,170, respectively.
<PAGE>
Note D - Line of Credit
A financing agreement is in place with all Calvert Group Funds (except for the
Calvert Social Investment Fund Managed Index, CVS Ameritas Index 500 and Calvert
Social Index Fund) 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 $1,666,160 of outstanding borrowings at
an interest rate of 7.25% at September 30, 2000.
Change in Independent Auditor
In September 2000, PricewaterhouseCoopers LLP (PricewaterhouseCoopers) resigned
in the normal course of business as independent auditor for the Calvert Group
Funds. Arthur Andersen LLP (Arthur Andersen) was selected as the Fund's
independent auditor. The Funds' selection of Arthur Andersen as its independent
auditor was recommended by the Fund's audit committee and was approved by the
Fund's Board of Trustees.
The reports on the financial statements audited by PricewaterhouseCoopers for
the years ended September 30, 1999 and prior for the Funds did not contain an
adverse opinion or a disclaimer of opinion, and were not qualified or modified
as to uncertainty, audit scope or accounting principles. There were no
disagreements between the Funds and PricewaterhouseCoopers on any matter of
accounting principles or practices, financial statement disclosure, or auditing
scope or procedures, which disagreements, if not resolved to the satisfaction of
PricewaterhouseCoopers would have caused it to make reference to the subject
matter of the disagreements in connection with its reports on the financial
statements of such years.
<PAGE>
Financial Highlights
Years Ended
September 30, September 30,
Class A Shares 2000 1999
Net asset value, beginning $17.08 $17.17
Income from investment operations
Net investment income 1.15 .99
Net realized and unrealized gain (loss) (.16) .74
Total from investment operations .99 1.73
Distributions from
Net investment income (1.16) (.99)
Net realized gain (.25) (.83)
Total distributions (1.41) (1.82)
Total increase (decrease) in net asset value (.42) (.09)
Net asset value, ending $16.66 $17.08
Total return* 6.11% 10.68%
Ratios to average net assets:
Net investment income 7.47% 6.01%
Total expenses 1.20% 1.32%
Expenses before offsets 1.20% 1.32%
Net expenses 1.17% 1.23%
Portfolio turnover 3,264% 3,454%
Net assets, ending (in thousands) $442,709 $91,764
Years Ended
September 30, September 30, September 30,
Class A Shares 1998 1997 1996
Net asset value, beginning $17.20 $16.47 $16.82
Income from investment operations
Net investment income 1.02 1.02 1.01
Net realized and unrealized gain (loss)
.61 .74 (.32)
Total from investment operations 1.63 1.76 .69
Distributions from
Net investment income (1.01) (1.02) (1.01)
In excess of net realized gain - (.01) (.03)
Net realized gain (.65) - --
Total distributions (1.66) (1.03) (1.04)
Total increase (decrease) in net asset value
(.03) .73 (.35)
Net asset value, ending $17.17 $17.20 $16.47
Total return* 9.92% 11.03% 4.21%
Ratios to average net assets:
Net investment income 5.96% 6.04% 6.02%
Total expenses 1.43% 1.33% 1.26%
Expenses before offsets 1.43% 1.33% 1.26%
Net expenses 1.36% 1.26% 1.23%
Portfolio turnover 3,461% 2,961% 153%
Net assets, ending (in thousands) $41,607 $39,302 $44,431
<PAGE>
Financial Highlights
Periods Ended
September 30, September 30,
Class B Shares 2000 1999 ^^
Net asset value, beginning $17.06 $17.02
Income from investment operations
Net investment income .97 .13
Net realized and unrealized gain (loss) (.17) .05
Total from investment operations .80 .18
Distributions from
Net investment income (.95) (.14)
Net realized gain (.25) -
Total distributions (1.20) (.14)
Total increase (decrease) in net asset value (.40) .04
Net asset value, ending $16.66 $17.06
Total return* 4.95% 1.06%
Ratios to average net assets:
Net investment income 6.75% 5.00% (a)
Total expenses 2.15% 3.74% (a)
Expenses before offsets 2.15% 2.98% (a)
Net expenses 2.12% 2.91% (a)
Portfolio turnover 3,264% 3,454%
Net assets, ending (in thousands) $31,646 $1,231
Period Ended
September 30,
Class C Shares 2000^^^
Net asset value, beginning $16.59
Income from investment operations
Net investment income .15
Net realized and unrealized gain (loss) .11
Total from investment operations .26
Distributions from
Net investment income (.18)
Total increase (decrease) in net asset value .08
Net asset value, ending $16.67
Total return* 1.58%
Ratios to average net assets:
Net investment income 7.42% (a)
Total expenses 2.16% (a)
Expenses before offsets 2.16% (a)
Net expenses 2.13% (a)
Portfolio turnover 3,264%
Net assets, ending (in thousands) $1,179
<PAGE>
Financial Highlights
Periods Ended
September 30, September 30,
Class I Shares 2000 1999 ^
Net asset value, beginning $17.06 $16.73
Income from investment operations
Net investment income 1.26 .63
Net realized and unrealized gain (loss) (.21) .34
Total from investment operations 1.05 .97
Distributions from
Net investment income (1.23) (.64)
Net realized gain (.25) -
Total distributions (1.48) (.64)
Total increase (decrease) in net asset value (.43) .33
Net asset value, ending $16.63 $17.06
Total return* 6.48% 5.83%
Ratios to average net assets:
Net investment income 7.78% 6.37% (a)
Total expenses .82% 1.07% (a)
Expenses before offsets .75% .81% (a)
Net expenses .72% .72% (a)
Portfolio turnover 3,264% 3,454%
Net assets, ending (in thousands) $13,954 $6,442
<PAGE>
(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.
^^^ From August 1, 2000, inception.
<PAGE>
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<PAGE>
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<PAGE>
Calvert
Income Fund
To Open an Account
800-368-2748
Yields and Prices
Calvert Information Network
(24 hours, 7 days a week)
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Service for Existing Account
Shareholders: 800-368-2745
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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
Taxable Bond Funds
CSIF Bond Portfolio
Income Fund
Equity Funds
CSIF Managed Index Portfolio
CSIF Equity Portfolio
CSIF Technology Portfolio
Calvert Large Cap Growth Fund
Capital Accumulation Fund
CWV International Equity Fund
New Vision Small Cap Fund
New Africa Fund
Calvert Social Index Fund
<PAGE>
printed on recycled paper
using soy-based inks
September 30, 2000
annual
report
Calvert New vision small cap fund
<PAGE>
Table
of
Contents
President's Letter
1
Social Update
2
Portfolio
Manager Remarks
3
Report of Independent Public Accountants
6
Schedule of Investments
7
Statement
of Assets and Liabilities
10
Statement
of Operations
11
Statements
of Changes in
Net Assets
12
Notes to
Financial Statements
13
Financial Highlights
17
Dear Shareholders:
While near-term volatility in equity and bond markets has set a tone of
challenge for investors and fund managers this past year, caution and discipline
remain a keynote of our manager's investment strategies. We are confident that
these will bring their own reward in the long term.
The state of the US economy seems to indicate that we have reason to be
optimistic despite recently falling market indices. For the time being, the
specter of inflation appears to be nothing more than that, and the underlying
economic fundamentals are solid. Indeed, the Fed, which left rates unchanged at
its last meeting, believes that inflation remains under control. Somewhat slower
economic growth will continue to keep prices in check - and there have been
indications of cooling in most traditional sectors of the economy. Therefore,
economic growth is expected to slow in the coming months and year.
Growth in the US economy coupled with price stability will continue to influence
the price and yield of Government bonds. Rising oil prices, temporarily curbed
by the recent decision to release 30m barrels from our Strategic Petroleum
Reserve, would almost certainly push up bond yields.
Also, the decision made by the US, Europe, and Japan to shore up the Euro could
have domestic consequences. While a weaker dollar could mean stronger balance
sheets for multinational companies, the stream of money from Europe into the US
economy could be reversed, adversely affecting equity and corporate bond prices.
Time will tell how events will play out. For the reasonable investor, discipline
and the need to make informed decisions are as important as ever before. As
always, we encourage you to make decisions based on your financial obligations
and tolerance for risk. Your financial professional can suggest strategies that
can keep you on track to meet your objectives.
We appreciate your investment in Calvert Group funds and look forward to working
with you to achieve your financial goals.
Sincerely,
Barbara J. Krumsiek
President and CEO
October 30, 2000
<PAGE>
Social
Update
The Calvert Social Index
As a leader in socially responsible investing we have for some time recognized
the market's need for a passively constructed Index of social companies. In
May, we created the Calvert Social Index , a broad-based, rigorously constructed
benchmark for measuring the performance of the largest of those U.S.-based
companies that meet our social criteria. Now, the real time performance of the
Index is being distributed through the Chicago Board of Trade and is available
through news agencies, financial services companies and brokerage firms.
The Calvert Social Index scrutinizes each of the 1,000 largest companies in the
U.S., representing stocks listed on the NYSE and NASDAQ-AMEX. The Index includes
companies that stand out positively in their environmental policies, actively
hire and promote minorities and women, provide a safe and healthy workplace, and
produce safe and healthy products. By giving the public a closer look at the
social practices of the Index companies, we are providing guidelines and helping
companies strive toward a higher level of social responsibility. To obtain
details on the Calvert Social Index go to www.calvert.com.
www.calvert.com Chosen Among the "Top 20 Best in Mutual Funds" Industry
Our web site has been chosen as one of this year's "Top 20 Web Sites Among
Mutual Funds," according to a study conducted by kasina, LLC, a New York
e-business consulting firm. The study evaluated over 421 mutual fund company Web
sites, noting that "[t]he high point of [Calvert's] site is the Know What You
Own search feature, which allows investors to see the top holdings of a
selected fund and to see their characteristics in terms of ethics and good
corporate citizenship. This is a unique feature not found on any other Web
site." Other notable interactive features that placed us among the top include
the Advisor Finder Service, the Socially Responsible Company Profiles in the
Calvert Social Index, and a SRI Timeline.
Proxy Analysis and Voting Intentions
We will make public our proxy analysis and voting intentions for Social Index
companies. We will review each Index company's individual proxy and publish the
Index's position on issues relating to its social criteria, along with the
rationale, on our Web site, www.calvert.com, beginning in the 2001 proxy season.
<PAGE>
James
Awad
of
AWAD asset management
How did the Fund perform?
The Calvert New Vision Small Cap Fund Class A shares returned 36.62% for the
year, strongly outperforming the Russell 2000 Index's 23.39%. This was largely
due to purchasing technology stocks that were attractively priced and selling
them as they approached and exceeded fair value.
What were the market and economic events that shaped the Fund's performance
during the course of the year?
The fourth quarter of 1999 was one of exuberance and excitement in the markets,
as investors flocked to the technology and communication stocks. The most
rational part of this environment, though, was that the markets advanced in
broad fashion. While technology led the marketplace, it was not the only sector
advancing. This was in direct contrast for the period from January 1, 1998,
through March 30, 1999, when the markets were narrowly based and only technology
did well.
As bottom-up stock pickers, we saw an opportunity beginning in September 1999 to
purchase technology stocks that were attractively priced. We sold them starting
April 2000 through September 2000, as they approached or exceeded fair value.
The first quarter of 2000 began just the same as the end of 1999 - characterized
by a broad-based advance in stock prices, led by technology and accompanied by
most stocks. The level of speculation in the NASDAQ, though, became unhealthy,
leading to heavy
Calvert New Vision Small Cap Fund Portfolio Statistics
September 30, 2000
Investment Performance
6 Months 12 Months
ended ended
9/30/00 9/30/00
Class A (6.73%) 36.62%
Class B (7.09%) 35.14%
Class C (6.98%) 35.57%
Class I (6.42%) 38.32%
Russell 2000
Index TR (2.72%) 23.39%
Lipper Small-Cap Core
Funds Average 0.04% 32.75%
Ten Largest Stock Holdings
% of Net Assets
Investors Financial Services Corp. 8.0%
NOVA Corp. 4.1%
American Tower Corp. 4.1%
Affiliated Computer Services, Inc. 3.8%
North Fork Bancorporation 3.7%
Kaydon Corp. 3.7%
Commscope, Inc. 3.6%
Gentex Corp. 3.5%
Corn Products International, Inc. 3.2%
Hooper Holmes, Inc. 3.2%
Total 40.9%
Asset Allocation
Stocks 87%
Bonds 1%
Cash & Cash Equivalents 12%
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
September 30, 2000
Average Annual Total Returns
Class A Shares
One year 30.16%
Since inception 4.46%
(1/31/97)
Class B Shares
One year 30.24%
Since inception 2.74%
(4/1/98)
Class C Shares
One year 34.67%
Since inception 5.15%
(1/31/97)
Class I Shares
One year 38.32%
Since inception 30.58%
(3/1/99)
New subadvisor assumed management of the Fund effective October 1997.
day trading and excessive valuations in that sector. When the Fed continued to
raise interest rates in efforts to cool a too-strong economy, all stock prices
declined - with many of those listed on the NASDAQ falling hardest.
As we entered and progressed through the second quarter, it became apparent that
the Fed-induced cycle of interest rate increases was coming to an end, which led
to some rebound in equity prices.
During the third quarter, stocks again came under pressure as the outlook for
corporate profits deteriorated due to a variety of factors - higher interest
rates, higher energy prices, tight labor markets, slowing economies, and a weak
Euro. As a result, most stock indices were down for the year 2000 as of the end
of September.
What was interesting, though, was the improved relative performance of the small
to
Performance Comparison
Comparison of change in value of $10,000 investment. (Source: Lipper Analytical
Services, Inc.)
[INSERT LINE GRAPH HERE]
Total returns assume reinvestment of dividends and reflect the deduction of the
Fund's maximum front-end or deferred sales charge. No sales charge has been
applied to the indices used for comparison. The value of an investment in Class
A & C shares is plotted in the line graph. The value of an investment in another
class of shares would be different. Past performance is no guarantee of future
results.
<PAGE>
mid capitalization sector during the past 12 months. After a period of being
ignored, small to mid cap stocks performed equal to or better than most indices
during this time. Reduced upward price momentum in large capitalization
equities led investors to seek out relative value in small and mid cap stocks.
This bodes well for the Fund going forward.
What is your outlook for the year ahead?
As we look forward, we expect markets to be in a holding pattern with a slight
upward bias as we deal with issues relating to corporate profits, uncertainty in
regards to energy prices, politics, and currencies. It will be a relative value,
stock picker's market where stock selection is more important than the general
direction of equity prices.
This market should play to the Fund's strengths as the real value in the markets
remains in the small to mid cap sector.
October 30, 2000
Portfolio Statistics
September 30, 2000
Portfolio Characteristics
New Vision Russell
Small Cap 2000
Fund index
Number of Stocks 37 1949
Median Market
Capitalization ($bil) 1.1 0.9
(by portfolio weight)
Price/Earnings 22.40 28.39
Ratio
Earnings Per Share
Growth 29.00% 17.98%
Yield 0.63% 1.38%
(return on capital investment)
Volatility Measures
New Vision Russell
Small Cap 2000
Fund index
Beta1 0.76 0.63
R-Squared2 0.31 0.26
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 Public Accountants
To the Board of Trustees of The Calvert Fund and Shareholders of Calvert New
Vision Small Cap Fund:
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of Calvert New Vision Small Cap Fund, (one of the
portfolios comprising The Calvert Fund, hereafter referred to as the "Fund"), as
of September 30, 2000, and the related statement of operations, the statement of
changes in net assets, and the financial highlights for the year then ended.
These financial statements and financial highlights are the responsibility of
the Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audit. The statement
of changes in net assets for the year ended September 30, 1999 and the financial
highlights for the periods presented prior to September 30, 2000 of the Fund,
were audited by other auditors, whose report dated November 10, 1999, expressed
an unqualified opinion on those statements.
We conducted our audit in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
confirmation of securities owned as of September 30, 2000, by correspondence
with the custodian, the broker, and application of alternative procedures with
respect to unsettled securities transactions. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Calvert New Vision Small Cap Fund as of September 30, 2000, the results of its
operations, the changes in its net assets, and the financial highlights for the
year then ended, in conformity with accounting principles generally accepted in
the United States.
ARTHUR ANDERSEN LLP
Philadelphia, Pennsylvania
November 15, 2000
<PAGE>
Schedule of Investments
September 30, 2000
Equity Securities - 87.2% Shares Value
Agricultural Products - 3.2%
Corn Products International, Inc. 132,000 $3,003,000
Auto Parts & Equipment - 3.5%
Gentex Corp. * 130,000 3,250,000
Banks - Major Regional - 5.0%
Capital Crossing Bank * 130,000 1,145,625
North Fork Bancorporation, Inc. 160,000 3,460,000
4,605,625
Broadcast - TV, Radio, Cable - 2.6%
Spanish Broadcasting System , Inc.* 207,500 2,438,125
Communications Equipment - 7.6%
American Tower Corp. * 100,000 3,768,750
Commscope, Inc. * 135,000 3,307,500
7,076,250
Computers - Peripherals - 3.4%
Maxtor Corp. * 106,000 1,113,000
Printronix, Inc. * 87,800 835,472
Quantum Corp.-Hard Disk Drive Group * 122,500 1,217,344
3,165,816
Computers - Software & Services - 7.2%
Affiliated Computer Services, Inc. * 70,000 3,491,250
Audible, Inc. * 129,500 153,781
Barra, Inc. * 20,500 1,272,281
Health Management Systems, Inc.* 201,000 402,000
Kronos, Inc. * 45,500 1,365,000
6,684,312
Distributors - Food & Health - 1.9%
Ventiv Health, Inc. * 137,500 1,735,938
Electronics - Semiconductors - 1.5%
S3, Inc. * 137,500 1,417,969
Financial - Diversified - 2.9%
Doral Financial Corp. 164,000 2,654,750
Healthcare - Special Services - 3.2%
Hooper Holmes, Inc. 315,000 2,995,650
Insurance - Life & Health - 4.2%
Annuity and Life Reinsurance (Holdings), Ltd.
103,000 2,484,875
Presidential Life Corp. 97,500 1,456,406
3,941,281
Investment Management - 8.0%
Investors Financial Services Corp. 117,400 7,410,875
Machinery - Diversified - 3.7%
Kaydon Corp 150,000 3,450,000
<PAGE>
Equity Securities - Cont'd Shares Value
Publishing - 8.1%
Houghton Mifflin Co. 58,000 $2,276,500
John Wiley & Sons, Inc. 114,400 2,624,050
Penton Media, Inc. 97,200 2,673,000
7,573,550
Railroads - 2.2%
Kansas City Southern Industries, Inc. 240,000 2,085,000
Restaurants - 1.1%
Outback Steakhouse, Inc. * 36,500 990,062
Services - Commercial & Consumer - 9.6%
Iron Mountain, Inc. * 80,000 2,960,000
New Horizons Worldwide, Inc. * 94,375 1,132,500
RMH Teleservices, Inc. * 52,500 843,281
Startek, Inc. * 91,350 2,649,150
Teletech Holdings, Inc. * 54,000 1,336,500
8,921,431
Services - Computer Systems - 2.2%
Investment Technology Group, Inc. * 50,000 1,996,875
Services - Data Process - 4.1%
Nova Corp.* 225,000 3,853,125
Services - Employment - 1.4%
Korn/Ferry International * 33,500 1,266,719
Telecommunications - Diversified - 0.6%
Alaska Communications Systems Group, Inc. * 92,000 586,500
Total Equity Securities (Cost $74,310,015) $81,102,853
Principal
Corporate Obligations - 0.5% Amount Value
Angeion Corp., 7.50%, 4/15/03 # $1,000,000 520,000
Total Corporate Obligations (Cost $1,000,000) 520,000
High Social Impact Investments - 0.3%
Dorchester Bay Economic Development Corp., 4.50%, 12/31/00 #
80,000 64,000
Mercy Loan Fund, 4.50%, 1/13/01 # 200,000 199,000
Total High Social Impact Investments (Cost $280,000) 263,000
<PAGE>
Principal
Repurchase Agreements - 9.5% Amount Value
State Street Bank: 6.50%, dated 9/29/00, due 10/2/00
(Collateral: $9,605,000, FHLB, 5.80%, 9/2/08)
$8,800,000 $8,800,000
Total Repurchase Agreements (Cost $8,800,000) 8,800,000
TOTAL INVESTMENTS (Cost $84,390,015) - 97.5% 90,685,853
Other assets and liabilities, net - 2.5% 2,283,375
Net Assets - 100% $92,969,228
* Non income producing.
# This security was valued by the board of directors. See Note A.
Restricted securities represent 0.3% of net assets for the Fund.
Abbreviations:
FHLB: Federal Home Loan Bank
See notes to financial statements.
<PAGE>
Statement of Assets and Liabilities
September 30, 2000
Assets
Investments in securities, at value - see accompanying schedule $90,685,853
Cash 255,206
Receivable for securities sold 4,852,137
Receivable for shares sold 307,901
Interest and dividends receivable 87,074
Other assets 9,946
Total assets 96,198,117
Liabilities
Payable for securities purchased 942,427
Payable for shares redeemed 2,142,593
Payable to Calvert Asset Management Co., Inc. 64,608
Payable to Calvert Administrative Services Company 19,526
Payable to Calvert Shareholder Services, Inc. 5,606
Payable to Calvert Distributors, Inc. 27,549
Accrued expenses and other liabilities 26,580
Total liabilities 3,228,889
Net Assets $92,969,228
Net Assets Consist of:
Paid-in capital applicable to the following shares of beneficial interest,
unlimited number of no par value shares authorized:
Class A: 4,320,606 shares outstanding $69,634,705
Class B: 249,639 shares outstanding 3,945,428
Class C: 489,124 shares outstanding 7,563,557
Class I: 2,448 shares outstanding (600,711)
Accumulated net realized gain (loss) on investments 6,130,411
Net unrealized appreciation (depreciation) on investments 6,295,838
Net Assets $92,969,228
Net Asset Value per Share
Class A: (based on net assets of $79,640,841) $18.43
Class B: (based on net assets of $4,483,709) $17.96
Class C: (based on net assets of $8,798,727) $17.99
Class I: (based on net assets of $45,951) $18.77
See notes to financial statements.
<PAGE>
Statement of Operations
Year ended September 30, 2000
Net Investment Income
Investment Income:
Dividend income (net of foreign taxes withheld of $5,600) $376,667
Interest income 189,434
Total investment income 566,101
Expenses:
Investment advisory fee 623,510
Transfer agency fees and expenses 285,226
Distribution Plan expenses:
Class A 175,938
Class B 29,449
Class C 80,423
Trustee's fees and expenses 8,278
Administrative fees 207,827
Accounting fees 46,166
Custodian fees 22,299
Registration fees 45,526
Reports to shareholders 46,000
Professional fees 9,506
Miscellaneous 9,927
Total expenses 1,590,075
Reimbursement from Advisor:
Class A (21,887)
Class B (916)
Class C (2,501)
Class I (11,638)
Fees paid indirectly (217,860)
Net expenses 1,335,273
Net Investment Income (Loss) (769,172)
Realized and Unrealized Gain (Loss) on Investments
Net realized gain (loss) 19,239,088
Change in unrealized appreciation or (depreciation) 3,356,605
Net Realized and Unrealized Gain
(Loss) on Investments 22,595,693
Increase (Decrease) in Net Assets
Resulting From Operations $21,826,521
See notes to financial statements.
<PAGE>
Statements of Changes in Net Assets
Year Ended Year Ended
September 30, September 30,
Increase (Decrease) in Net Assets 2000 1999
Operations:
Net investment income (loss) ($769,172) ($333,016)
Net realized gain (loss) 19,239,088 (8,698,475)
Change in unrealized appreciation or (depreciation)
3,356,605 16,538,405
Increase (Decrease) in Net Assets
Resulting From Operations 21,826,521 7,506,914
Capital share transactions:
Shares sold:
Class A Shares 24,025,533 14,204,261
Class B Shares 2,931,840 1,514,296
Class C Shares 2,244,875 1,751,372
Class I Shares 637,049 1,481,253
Shares redeemed:
Class A Shares (15,970,917) (29,811,556)
Class B Shares (495,029) (633,676)
Class C Shares (1,813,109) (3,093,613)
Class I Shares (2,411,026) (310,855)
Total capital share transactions 9,149,216 (14,898,518)
Total Increase (Decrease) in Net Assets 30,975,737 (7,391,604)
Net Assets
Beginning of year 61,993,491 69,385,095
End of year $92,969,228 $61,993,491
Capital Share Activity
Shares sold:
Class A Shares 1,337,934 1,108,786
Class B Shares 164,665 117,732
Class C Shares 130,830 115,503
Class I Shares 36,269 120,487
Shares redeemed:
Class A Shares (942,845) (2,312,642)
Class B Shares (28,226) (48,067)
Class C Shares (110,166) (241,125)
Class I Shares (130,642) (23,666)
Total capital share activity 457,819 (1,162,992)
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 of purchase. Class
B and Class C shares have higher levels of expenses than Class A shares. 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 differences in Distribution Plan expenses and other class specific
expenses, (b) exchange privileges and (c) class specific voting rights.
Security Valuation: Securities listed or traded on a national securities
exchange are valued at the last reported sale price. Unlisted securities and
listed securities for which the last sale price is unavailable are valued at the
most recent bid price or based on a yield equivalent obtained from the
securities' market maker. The Fund may invest in securities whose resale is
subject to restrictions. 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 for the investments
existed, and the differences could be material.
At September 30, 2000, $783,000, or 0.8% of net assets, were valued by the Board
of Trustees.
Repurchase Agreements: The Fund may enter into repurchase agreements with
recognized financial institutions or registered broker/dealers and, in all
instances, holds underlying securities with a value exceeding the total
repurchase price, including accrued interest. Although risk is mitigated by the
collateral, the Fund could experience a delay in recovering its value and a
possible loss of income or value if the counterparty fails to perform in
accordance with the terms of the agreement.
Options: The Fund may write or purchase option securities. The option premium is
the basis for recognition of unrealized or realized gain or loss on the option.
The cost of secu-
<PAGE>
rities 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. 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 taxable
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
.75% based on the Fund's average daily net assets.
The Advisor contractually reimbursed the Fund for expenses of $36,942 for the
year ended September 30, 2000.
Calvert Administrative Services Company, an affiliate of the Advisor, provides
administrative services to the Fund for an annual fee, payable monthly, of .25%
for Class A,
<PAGE>
Class B, and Class C shares and .10% for Class I shares 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,
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.
The Distributor received $45,971 as its portion of the commissions charged on
sales of the Fund's shares for the year ended September 30, 2000.
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 $69,567 for the year ended September 30, 2000. National Financial Data
Services, Inc., is the transfer and dividend disbursing agent.
The Fund invests in Community Investment Notes issued by the Calvert Social
Investment Foundation (the "CSI Foundation"). The CSI Foundation is a 501(c)(3)
non-profit organization that receives in-kind support from the Calvert Group,
Ltd. and its subsidiaries. The Fund has received from the Securities and
Exchange Commission a "no-action" letter permitting the Fund to make investments
in these notes under certain conditions, such conditions of which are being met.
The CSI Foundation provided certain administrative services to the Fund. These
services included a due diligence review for each potential organization which
is being considered for a high social impact investment ("HSI investment"). The
services also included 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 received an annual fee, paid
quarterly of 1.00% of the Fund's average daily net assets invested in HSI
investments. Effective July 1, 2000, the Fund no longer pays this fee to the CSI
Foundation.
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.
Note C - Investment Activity
During the year, purchases and sales of investments, other than short-term
securities, were $83,518,686 and $84,423,065, respectively.
The cost of investments owned at September 30, 2000 was substantially the same
for federal income tax and financial reporting purposes. Net unrealized
appreciation aggregated $6,295,838, of which $81,885,853 related to appreciated
securities and $75,590,015 related to depreciated securities.
<PAGE>
Note D - Line of Credit
A financing agreement is in place with all Calvert Group Funds (except for the
Calvert Social Investment Fund Managed Index, CVS Ameritas Index 500 and Calvert
Social Index Fund) 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, 2000.
Change in Independent Auditor
In September 2000, PricewaterhouseCoopers LLP (PricewaterhouseCoopers) resigned
in the normal course of business as independent auditor for the Calvert Group
Funds. Arthur Andersen LLP (Arthur Andersen) was selected as the Fund's
independent auditor. The Funds' selection of Arthur Andersen as its independent
auditor was recommended by the Fund's audit committee and was approved by the
Fund's Board of Trustees.
The reports on the financial statements audited by PricewaterhouseCoopers for
the years ended September 30, 1999 and prior for the Funds did not contain an
adverse opinion or a disclaimer of opinion, and were not qualified or modified
as to uncertainty, audit scope or accounting principles. There were no
disagreements between the Funds and PricewaterhouseCoopers on any matter of
accounting principles or practices, financial statement disclosure, or auditing
scope or procedures, which disagreements, if not resolved to the satisfaction of
PricewaterhouseCoopers would have caused it to make reference to the subject
matter of the disagreements in connection with its reports on the financial
statements of such years.
<PAGE>
Financial Highlights
Years Ended
September 30, September 30,
Class A Shares 2000 1999
Net asset value, beginning $13.49 $12.04
Income from investment operations
Net investment income (loss) (.13) (.05)
Net realized and unrealized gain (loss) 5.07 1.50
Total from investment operations 4.94 1.45
Total increase (decrease) in net asset value 4.94 1.45
Net asset value, ending $18.43 $13.49
Total return* 36.62% 12.04%
Ratios to average net assets:
Net investment income (loss) (.82%) (.39%)
Total expenses 1.79% 1.96%
Expenses before offsets 1.76% 1.93%
Net expenses 1.50% 1.66%
Portfolio turnover 113% 68%
Net assets, ending (in thousands) $79,641 $52,961
Periods Ended
September 30, September 30,
Class A Shares 1998 1997^
Net asset value, beginning $15.65 $15.00
Income from investment operations
Net investment income (loss) (.02) (.05)
Net realized and unrealized gain (loss) (3.55) .70
Total from investment operations (3.57) .65
Distributions from
Net realized gain (.04) -
Total distributions (.04) -
Total increase (decrease) in net asset value (3.61) .65
Net asset value, ending $12.04 $15.65
Total return* (22.86%) 4.33%
Ratios to average net assets:
Net investment income (loss) (.17%) (.71%) (a)
Total expenses 1.88% 4.72% (a)
Expenses before offsets 1.82% 1.36% (a)
Net expenses 1.71% .90% (a)
Portfolio turnover 68% 196%
Net assets, ending (in thousands) $61,765 $3,260
<PAGE>
Financial Highlights
Periods Ended
September 30, September 30, September 30,
Class B Shares 2000 1999 1998#
Net asset value, beginning $13.29 $12.01 $16.18
Income from investment operations
Net investment income (loss) (.30) (.15) (.05)
Net realized and unrealized gain (loss)
4.97 1.43 (4.12)
Total from investment operations
4.67 1.28 (4.17)
Total increase (decrease) in net asset value
4.67 1.28 (4.17)
Net asset value, ending $17.96 $13.29 $12.01
Total return* 35.14% 10.66% (25.77%)
Ratios to average net assets:
Net investment income (loss) (1.86%) (1.68%) (1.39%) (a)
Total expenses 2.97% 3.87% 7.68% (a)
Expenses before offsets 2.94% 3.33% 3.40% (a)
Net expenses 2.52% 2.93% 2.99% (a)
Portfolio turnover 113% 68% 68%
Net assets, ending (in thousands)
$4,484 $1,504 $523
<PAGE>
Financial Highlights
Years Ended
September 30, September 30,
Class C Shares 2000 1999
Net asset value, beginning $13.27 $11.95
Income from investment operations
Net investment income (loss) (.26) (.22)
Net realized and unrealized gain (loss) 4.98 1.54
Total from investment operations 4.72 1.32
Total increase (decrease) in net asset value 4.72 1.32
Net asset value, ending $17.99 $13.27
Total return* 35.57% 11.05%
Ratios to average net assets:
Net investment income (loss) (1.66%) (1.27%)
Total expenses 2.68% 2.87%
Expenses before offsets 2.65% 2.84%
Net expenses 2.33% 2.53%
Portfolio turnover 113% 68%
Net assets, ending (in thousands) $8,799 $6,215
Periods Ended
September 30, September 30,
Class C Shares 1998 1997^
Net asset value, beginning $15.62 $15.00
Income from investment operations
Net investment income (loss) (.15) (.10)
Net realized and unrealized gain (loss) (3.48) .72
Total from investment operations (3.63) .62
Distributions from
Net realized gain (.04) -
Total distributions (.04) -
Total increase (decrease) in net asset value (3.67) .62
Net asset value, ending $11.95 $15.62
Total return* (23.31%) 4.13%
Ratios to average net assets:
Net investment income (loss) (1.15%) (.95%)(a)
Total expenses 2.94% 10.91%(a)
Expenses before offsets 2.78% 1.47%(a)
Net expenses 2.64% 1.15%(a)
Portfolio turnover 68% 196%
Net assets, ending (in thousands) $7,097 $318
<PAGE>
Financial Highlights
Periods Ended
September 30, September 30,
Class I Shares 2000 1999^^
Net asset value, beginning $13.57 $12.20
Income from investment operations
Net investment income (loss) (.03) .03
Net realized and unrealized gain (loss) 5.23 1.34
Total from investment operations 5.20 1.37
Total increase (decrease) in net asset value 5.20 1.37
Net asset value, ending $18.77 $13.57
Total return* 38.32% 11.23%
Ratios to average net assets:
Net investment income (loss) (.14%) .36% (a)
Total expenses 1.64% 1.87% (a)
Expenses before offsets .98% .93% (a)
Net expenses .82% .82% (a)
Portfolio turnover 113% 68%
Net assets, ending (in thousands) $46 $1,314
(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 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
Taxable Bond Funds
CSIF Bond Portfolio
Income Fund
Equity Funds
CSIF Managed Index Portfolio
CSIF Equity Portfolio
CSIF Technology Portfolio
Calvert Large Cap Growth Fund
Capital Accumulation Fund
CWV International Equity Fund
New Vision Small Cap Fund
New Africa Fund
Calvert Social Index Fund
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