<PAGE>
Calvert
Money
Management
Plus Prime
Portfolio
Semi-Annual Report
March 31, 1996
Investing with Vision(TM)
[LOGO] Calvert Group
A member of The Acacia Group(R)
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MONEY MANAGEMENT PLUS
PRIME PORTFOLIO
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REMINDER TO SHAREHOLDERS:
Effective May 15, 1996 the minimum investment for this Portfolio is
$1,000,000. Calvert Money Management Plus Prime shareholders should
discontinue writing checks effective immediately and Calvert Group will not
accept investment checks after June 15, 1996. To move your MMP Prime Account
assets into another Calvert Group Fund, please call one of our investor
relations representatives at 800-368-2745.
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Dear Shareholder:
The six-month period ended March 31, 1996 was one of mixed results for the
bond and money markets. Bonds finished 1995 strongly, largely due to a series of
interest rate cuts by the Federal Reserve.
But after the Labor Department reported stronger-than-expected employment
numbers in February and March of this year, inflation fears mounted and the
prospect of further cuts by the Fed began to dim. As investors adjusted their
inflationary expectations higher, long-term interest rates rose and bond prices,
which move inversely to rates, fell. As a result, the first quarter was one of
the worst on record for bonds, with the benchmark 30-year Treasury bond turning
in a negative total return of approximately 8.5%. The yield on the average money
market fund fell to 5.23% from its level of 5.43% six months ago along with the
decline in short-term rates.
Fund Performance And Strategy
For the period covered by this report, the Portfolio's annualized dividend
yield of 4.20% fell short of its benchmark, the Lipper Money Market Funds
Average, and was below its yield of 4.62% six months ago. As of March 31, 1996,
the Portfolio's weighted average maturity was 25 days.
Short-Term Interest Rates
-----------------------------------------
[CHART APPEARS HERE]
[PLOT POINTS TO COME]
Short term interest rates for the period
03/01/95 To 03/31/96
for
Federal Funds Rate
90-Day Treasury Bill
1-Year Treasury Bill
SEMI-ANNUAL REPORT (UNAUDITED) MONEY MANAGEMENT PLUS PRIME PORTFOLIO - 1
<PAGE>
Prime Portfolio Annualized
Compound Dividend Yield
<TABLE>
<CAPTION>
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Six Months Ended Six Months Ended
3/31/96 9/30/95
---------------- ----------------
<S> <C> <C>
Prime Portfolio 4.20% 4.62%
Lipper Money Market Funds Average 5.23% 5.43%
</TABLE>
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Outlook
Recent economic data, particularly the unusually large number of jobs created
during the first quarter, suggest that the economy is stronger than was
previously believed. The current unemployment rate of 5.5%, for example, is the
lowest it's been in years. Furthermore, the Federal Reserve has publicly stated
its commitment to maintaining an economic growth rate in the range of 2% to
2.5%, about where it is right now. Thus, in the near term, we do not expect the
Fed to stimulate the economy with additional cuts in interest rates.
We appreciate your investment in the Money Management Plus Prime Portfolio.
Sincerely,
/s/ Clifton S. Sorrell
Clifton S. Sorrell
President
April 30, 1996
2 - MONEY MANAGEMENT PLUS PRIME PORTFOLIO SEMI-ANNUAL REPORT (UNAUDITED)
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<TABLE>
<CAPTION>
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Portfolio Statistics
Maturity Schedule
% of Portfolio 3/31/96 9/30/95
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<S> <C> <C>
1 - 60 Days 100% 100%
61 - 120 Days -- --
121 - 180 Days -- --
181 - 360 Days -- --
Weighted Average 25 days 13 days
</TABLE>
Quality Structure of Portfolio
As of 3/31/96 the Fund was 100% invested in U.S. Government and agency
securities. However, the Fund may invest in certificates of deposit of major
banks, prime commercial paper and high grade short-term corporate obligations.
In all cases it invests only in high-quality instruments (rated in one of the
two highest rating categories, or if unrated, of comparable credit quality) that
meet the requirements of SEC Rule 2a-7 regarding credit quality and maturity.
Performance Hypothetical
Change in value of a hypothetical $10,000 investment
[CHART APPEARS HERE]
for the period 04/01/86 to 03/31/96
Beginning Balance 10,000
Ending Balance 16,834
Total returns assume reinvestment of dividends. Past performance is
no guarantee of future results.
SEMI-ANNUAL REPORT (UNAUDITED) MONEY MANAGEMENT PLUS PRIME PORTFOLIO - 3
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STATEMENT OF NET ASSETS
MARCH 31, 1996
<TABLE>
<CAPTION>
U.S. Government Agencies and Principal
Instrumentalities - 62.5% Amount Value
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<S> <C> <C>
Federal Farm Credit Bank, 4.96%, 5/8/96.................................. $ 3,000,000 $ 2,984,707
Federal Home Loan Bank, 5.25%, 4/10/96................................... 3,510,000 3,505,393
Federal National Mortgage Assn., 4.95%, 5/10/96.......................... 5,000,000 4,973,188
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Total U.S. Government Agencies and Instrumentalities
(Cost $11,463,288)..................................................... 11,463,288
-----------
U.S. Treasury - 38.1%
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U.S. Treasury Bills, 5.15%, 4/4/96....................................... 3,000,000 2,998,712
U.S. Treasury Bills, 4.96%, 4/18/96...................................... 4,000,000 3,990,631
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Total U.S. Treasury (Cost $6,989,343)................................... 6,989,343
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TOTAL INVESTMENTS (Cost $18,452,631) - 100.6%.......................... 18,452,631
Other assets and liabilities, net - (0.6%)............................ (108,276)
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Net Assets - 100%..................................................... $18,344,355
===========
Net Assets Consist Of:
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Paid-in capital applicable to 18,391,972 shares of beneficial interest,
unlimited number of no par shares authorized............................ $18,381,512
Undistributed net investment income (loss)............................... (4,187)
Accumulated net realized gain (loss) on investments...................... (32,970)
-----------
Net Assets............................................................. $18,344,355
===========
Net Asset Value per Share.............................................. $1.00
===========
</TABLE>
See notes to financial statements.
4 - MONEY MANAGEMENT PLUS PRIME PORTFOLIO SEMI-ANNUAL REPORT (UNAUDITED)
<PAGE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED MARCH 31, 1996
<TABLE>
<CAPTION>
Net Investment Income
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<S> <C>
Investment Income
Interest income...................................... $677,145
--------
Expenses
Investment advisory fee.............................. 62,020
Transfer agency fees and expenses.................... 68,763
Distribution Plan expenses........................... 43,414
Trustees' fees and expenses.......................... 1,155
Custodian fees....................................... 4,563
Registration fees.................................... 6,408
Reports to shareholders.............................. 33,309
Miscellaneous........................................ 6,298
--------
Total expenses...................................... 225,930
Fees paid indirectly................................ (4,563)
--------
Net expenses....................................... 221,367
--------
Net Investment Income............................ 455,778
--------
Realized Gain (Loss) on Investments
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Net realized gain (loss).............................. 2,789
--------
Increase (Decrease) in Net Assets
Resulting From Operations........................ $458,567
========
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT (UNAUDITED) MONEY MANAGEMENT PLUS PRIME PORTFOLIO - 5
<PAGE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets
Six Months Year Ended
Ended September 30,
Increase (Decrease) In Net Assets March 31, 1996 1995
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<S> <C> <C>
Operations
Net investment income.......................... $ 455,778 $ 4,077,434
Net realized gain (loss)....................... 2,789 4,547
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Increase (Decrease) in Net Assets
Resulting From Operations..................... 458,567 4,081,981
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Distributions to shareholders from
Net investment income.......................... (459,965) (4,077,435)
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Capital share transactions:
Shares sold.................................... 18,111,107 161,504,574
Reinvestment of distributions.................. 449,002 3,889,856
Shares redeemed................................ (26,989,585) (238,596,820)
------------- --------------
Total capital share transactions.............. (8,429,476) (73,202,390)
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Total Increase (Decrease)
in Net Assets................................... (8,430,874) (73,197,844)
NET ASSETS
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Beginning of period............................ 26,775,229 99,973,073
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End of period (including undistributed net
investment income (loss) of $(4,187)
and $0, respectively)......................... $18,344,355 $26,775,229
============= ==============
</TABLE>
See notes to financial statements.
6 - MONEY MANAGEMENT PLUS PRIME PORTFOLIO SEMI-ANNUAL REPORT (UNAUDITED)
<PAGE>
Notes to Financial Statements
Note A--Significant Accounting Policies
General: The Calvert Money Management Plus Prime Portfolio (the "Fund"), the
sole series of Calvert Cash Reserves, is registered under the Investment Company
Act of 1940 as a diversified, open-end management investment company. The Fund
offers shares of beneficial interest to the public with no sales charge.
Security Valuation: Securities are valued at amortized cost which approximates
market.
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.
Security Transactions and Investment Income: Security transactions are
accounted for on trade date. Realized gains and losses are recorded on an
identified cost basis. Interest income, accretion of discount and amortization
of premium are recorded on an accrual basis.
Distributions to Shareholders: Distributions to shareholders are recorded by
the Fund on ex-dividend date. Dividends from net investment income are accrued
daily and 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.
Expense Offset Arrangement: The Fund has an arrangement with its custodian bank
whereby the custodian's fees are paid indirectly by credits earned on the Fund's
cash on deposit with the bank. Such deposit arrangement is an alternative to
overnight investments.
Federal Income Taxes: No provision for federal income or excise tax is required
since the Fund intends to continue to qualify as a regulated investment company
under the Internal Revenue Code and to distribute substantially all of its
earnings.
Note B--Related Party Transactions
Calvert Asset Management Company, Inc. (the "Advisor") is wholly-owned by
Calvert Group, Ltd. ("Calvert"), which is indirectly wholly-owned by Acacia
Mutual Life Insurance Company. The Advisor provides investment advisory services
and pays the salaries and fees of officers and affiliated Trustees of the Fund.
For its services, the Advisor receives a monthly fee based on an annual rate of
.50% on the first $500 million of average daily net assets.
SEMI-ANNUAL REPORT (UNAUDITED) MONEY MANAGEMENT PLUS PRIME PORTFOLIO - 7
<PAGE>
Calvert Distributors, Inc., an affiliate of the Advisor, is the distributor and
principal underwriter for the Fund. A Distribution Plan, adopted by the
shareholders, allows the Fund to pay the Distributor for expenses and services
associated with distribution of shares. The expenses paid may not exceed .35%
annually of the Fund's average daily net assets.
Calvert Shareholder Services, Inc., an affiliate of the Advisor, acts as
transfer, dividend disbursing and shareholder servicing agent for the Fund.
Each Trustee who is not affiliated with the Advisor receives an annual fee of
$20,250 plus up to $1,200 for each Board and Committee meeting attended.
Trustee's fees are allocated to each of the funds served.
Note C--Investment Activity
The cost of investments owned at March 31, 1996 was substantially the same for
federal income tax and financial reporting purposes.
Net realized capital loss carryforwards, for federal income tax purposes, of
approximately $36,000 at September 30, 1995 may be utilized to offset current
and future capital gains until expiration in 2002.
Note D--Capital Shares
Transactions in shares of beneficial interest ("capital shares") were as
follows:
<TABLE>
<CAPTION>
Six Months Year Ended
Ended September 30,
Share Activity March 31, 1996 1995
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<S> <C> <C>
Shares sold..................................... 18,111,107 161,504,574
Reinvestment of distributions................... 449,002 3,889,856
Shares redeemed................................. (26,989,585) (238,596,820)
------------ -------------
Net share activity............................. (8,429,476) (73,202,390)
============ =============
</TABLE>
8 - MONEY MANAGEMENT PLUS PRIME PORTFOLIO SEMI-ANNUAL REPORT (UNAUDITED)
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FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
PERIODS ENDED
--------------------------------
MARCH 31, SEPTEMBER 30,
1996 1995 1994
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<S> <C> <C> <C>
Net asset value, beginning of period...... $ 1.00 $ 1.00 $ 1.00
======= ======= ========
Income from investment operations
- ---------------------------------
Net investment income................... .019 .045 .028
Distributions from
- ------------------
Net investment income................... (.019) (.045) (.028)
------- ------- --------
Net asset value, end of period............ $ 1.00 $ 1.00 $ 1.00
======= ======= ========
Total return*............................. 1.87% 4.55% 2.78%
======= ======= ========
Ratios to average net assets:
Net investment income................... 3.67%(a) 4.53% 2.75%
======= ======= ========
Total expenses +........................ 1.82%(a) 1.41% --
======= ======= ========
Net expenses............................ 1.78%(a) 1.39% 1.23%
======= ======= ========
Net assets, end of period (in thousands).. $18,344 $26,775 $ 99,973
======= ======= ========
Number of shares outstanding at
end of period (in thousands)............ 18,392 26,821 100,024
======= ======= ========
</TABLE>
<TABLE>
<CAPTION>
YEARS ENDED
----------------------------------
SEPTEMBER 30,
1993 1992 1991
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<S> <C> <C> <C>
Net asset value, beginning of year...... $ 1.00 $ 1.00 $ 1.00
======== ======== ========
Income from investment operations
- ---------------------------------
Net investment income................. .025 .037 .061
Distributions from
- ------------------
Net investment income................. (.025) (.037) (.061)
-------- -------- --------
Net asset value, end of year............ $ 1.00 $ 1.00 $ 1.00
======== ======== ========
Total return............................ 2.59% 3.72% 6.27%
======== ======== ========
Ratios to average net assets:
Net investment income................. 2.48 % 3.69% 6.09%
======== ======== ========
Total expenses +...................... -- -- --
======== ======== ========
Net expenses.......................... .92 % .87% .93%
======== ======== ========
Net assets, end of year (in thousands).. $102,325 $106,851 $119,316
======== ======== ========
Number of shares outstanding at
end of year (in thousands)............ 102,370 106,897 119,362
======== ======== ========
</TABLE>
(a) Annualized.
+ Effective September 30, 1995, this ratio reflects total expenses before
reduction for fees paid indirectly; such reductions are included in the
ratio of net expenses.
* Total return is not annualized.
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12 - MONEY MANAGEMENT PLUS PRIME PORTFOLIO SEMI-ANNUAL REPORT (UNAUDITED)
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==============================================================================
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 1000N
Bethesda, Maryland 20814
Registered, Certified
or Overnight Mail:
-------------------
Calvert Group
c/o NFDS, 6th Floor
1004 Baltimore
Kansas City, MO 64105-1807
Web Site
-------------------
Address: http://www.calvertgroup.com
Principal
Underwriter:
-------------------
Calvert Distributors, Inc.
4550 Montgomery Avenue
Suite 1000N
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.
