September 30, 1998
Annual
Report
Calvert cash
reserves Institutional
Prime Fund
<PAGE>
Calvert
Cash
Reserves
Institutional
Prime
Fund
Calvert Group
INformation
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http://www.calvertgroup.com
Please check the inside back cover for
Calvert Group's Family of Funds.
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.
<PAGE>
TABLE OF CONTENTS
President's Letter 1
Report of Independent Accountants 3
Statements of Net Assets 4
Statements of Operations 8
Statement of Changes in Net Assets 9
Notes to Financial Statements 10
Financial Highlights 12
Dear Shareholders:
In our report six months ago, we noted that evidence of an economic slowdown
might begin to emerge but we were unsure if the slowdown would be sufficient
to keep the Federal Reserve from raising rates given their tightening bias.
Since that time, it has become apparent that the Asian contagion has spread
and that not only Russia, but other emerging markets (such as Latin America)
have also entered a period of great uncertainty. World confidence has been
shaken and investors have flocked to the safety of U.S. Treasury issues. With
mounting evidence of a slowdown in U.S. business activity, the Federal Reserve
very rapidly shifted from a tightening to neutral to easing bias and brought
the federal funds rate down 25 basis points at their September meeting. We
think it very likely that more easing of rates is ahead in the months to
come.
Portfolio Strategy
We continue to invest in a mix of first-tier variable rate demand notes,
repurchase agreements, commercial paper, certificates of deposit, government
agency issues and short term corporate notes.
As the summer wound down, the effects of the Asian contagion on the U.S.
economy became more clear, and the Federal Reserve moved to an easing bias, we
increased our commercial paper purchases to lock in fixed rates before the
easing occurred. Simultaneously, we reduced our exposure to variable rate
demand notes, since the rates reset downward very quickly after an easing.
However, since the yields on variable rate demand notes are still quite high
relative to other types of money market securities, we continue to hold a high
percentage of these issues in the Portfolio.
As we more actively purchased commercial paper, we extended our average days
to maturity. At the close of the quarter, our average days to maturity was 36
days versus 46 days six months ago.
Performance
The Portfolio has consistently outperformed, on a net basis, the average
institutional money market fund over the past year (no. 3 of 188 funds in
Lipper Institutional Money Market Funds Average for the year ended September
30, 1998.)
Outlook
In the near future, it is likely that we will continue to see economic data
reports which indicate that U.S. growth has slowed considerably from its
earlier pace. In response to this and to mounting concerns over the global
liquidity crisis, the Federal Reserve will likely continue to lower borrowing
rates. If the flight to quality in U.S. Treasury issues continues, prices for
these issues will remain high and will exert more downward pressure on money
market fund yields.
While the prospect of a further decline in yields is not welcome news,
investors should bear in mind that money market returns over inflation remain
quite attractive, especially in light of the current historic low yields
available on longer-term Treasury bonds.
Sincerely,
Barbara J. Krumsiek
President and CEO
October 14 , 1998
Quality Structure of Portfolio
It is the operating policy of the Fund to invest only in tier-one securities
as defined by Rule 2a-7 of the Investment Policy Act of 1940. It is a further
operating policy of the fund that it will invest only in issues rated A-1 or
P-1 rated issues. See the Statement of Additional Information. "Appendix,
Commercial Paper Bond Ratings."
<PAGE>
Report of Independent Accountants
To the Board of Trustees and Shareholders of Calvert Social Investment Fund:
In our opinion, the accompanying statement of assets and liabilities,
including the portfolio of investments, and the related statements of
operations, statements of changes in net assets and financial highlights
present fairly, in all material respects, the financial position of
Institutional Prime Fund (the sole series of Calvert Cash Reserves, hereafter
referred to as the "Fund"), at September 30, 1998, and the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended and the financial highlights for each
of the periods indicated therein, in conformity with generally accepted
accounting principles. Theses financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of
the Fund's management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with generally accepted auditing standards
which require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management,
and evaluating the overall financial statement presentation. We believe that
our audits, which included confirmation of securities at September 30, 1998 by
correspondence with custodians provide a reasonable basis for the opinion
expressed above.
PricewaterhouseCoopers LLP
Baltimore, Maryland
November 6, 1998
<PAGE>
STATEMENT OF NET ASSETS
SEPTEMBER 30, 1998
Principal
Corporate Obligations - 60.2% Amount Value
Aegis Assisted Living Prop., LLC. VRDN,
6.00%, 2/1/28, LOC:
Banque Paribas * $6,970,000 $6,970,000
Alabama State Industrial Development
Authority VRDN,
5.65%, 12/1/19, LOC: Nationsbank * 5,690,000 5,690,000
Allegheny County, Pennsylvania
Industrial Development Revenue
VRDN, 5.75%, 7/1/27, LOC:
Dresdner Bank * 4,700,000 4,700,000
Arkansas State Development
Finance Authority VRDN,
5.50%, 8/1/30, LOC: Credit Suisse * 1,600,000 1,600,000
BP America, Inc., 9.75%, 3/1/99 5,000,000 5,076,585
Bel Air, LLC. VRDN, 5.65%,
12/1/15, LOC: Amsouth Bank * 6,265,000 6,265,000
Berks County, Pennsylvania Industrial
Development Authority
VRDN, 5.45%, 7/1/16, LOC: Corestates * 3,000,000 3,000,000
Betters Group, LP. VRDN, 5.65%,
2/1/12, LOC:
Century National Bank and
Trust, Confirming LOC:
Mellon Bank * 50,000 50,000
Bexar County, Texas Health Facilities
Development VRDN,
5.95%, 2/1/22, LOC: Kredietbank * 3,425,000 3,425,000
Blount/Strange Realty Holdings,
LLC. VRDN, 5.65%, 7/1/16,
LOC: Regions Bank * 4,760,000 4,760,000
Botsford General Hospital VRDN,
5.80%, 2/15/27, VRDN,
5.80%, 2/15/27, LOC: Michigan National * 7,000,000 7,000,000
California Pollution Control VRDN, 5.55%,
7/1/06,
LOC: Wells Fargo Bank * 1,700,000 1,700,000
California Statewide Community
Development VRDN, 5.75%,
5/1/27, LOC: Heller Financial,
Confirming LOC:
Commerze Bank * 495,000 495,000
California Statewide Community
Development VRDN, 5.75%,
5/1/27, LOC: Heller Financial,
Confirming LOC:
Commerze Bank * 455,000 455,000
California Statewide Community
Development VRDN, 6.00%,
7/1/27, LOC: Heller Financial, Confirming
LOC: Commerze Bank * 525,000 525,000
Clinic Building, Inc., VRDN,
5.79%, 12/1/18,
LOC: Rabobank Nederland * 2,550,000 2,549,765
Colorado Health Facilities Authority
Revenue VRDN,
5.66%, 2/1/13, LOC: Kredietbank * 5,700,000 5,700,000
Colorado Health Facilities Authority
Revenue VRDN,
5.75%, 2/1/25, LOC: Kredietbank * 2,300,000 2,300,000
Colorado Health Facilities Authority
Revenue VRDN,
5.95%, 2/1/25, LOC: Kredietbank * 5,510,000 5,510,000
Colorado Health Facilities Authority Revenue
VRDN, 5.85%,
11/1/26, LOC: Kredietbank * 5,990,000 5,988,550
Columbus, Georgia Development
Authority Industrial Revenue
VRDN, 5.50%, 1/1/05, LOC: Fleet Bank * 875,000 875,000
Concrete Co., VRDN, 5.65%,
7/1/48, LOC: Columbus
Bank and Trust * 3,975,000 3,975,000
Deutsche Bank, 5.71%, 4/16/99 4,000,000 3,998,541
FirstNational Bank Chicago,
Il, 5.52%, 2/16/99 8,000,000 7,995,341
<PAGE>
Principal
Corporate Obligations - (Cont'd) Amount Value
Florida Housing Finance Agency VRDN,
6.50%, 7/1/23, LOC:
Heller Financial, Confirming LOC:
Commerze Bank * $750,000 $750,000
Garmong Newspaper Development Co., LLC.
VRDN,
5.95%, 9/1/16, LOC: Citizens
National Bank of Evansville,
Confirming LOC: Harris Trust * 2,945,000 2,945,000
Healthrack Sports and
Wellness VRDN, 5.50%, 2/15/27, LOC:
American National Bank and Trust * 5,850,000 5,850,000
Idaho Associates, LLC. VRDN,
5.50%, 4/1/27,
LOC: LaSalle Bank * 4,150,000 4,150,000
Kit Carson County, Colorado VRDN,
5.75%, 6/1/27,
LOC: Norwest Bank * 2,000,000 2,000,000
La Mirada, California Industrial
Development Authority VRDN,
5.50%, 12/1/26, LOC: FNB Chicago * 3,700,000 3,700,000
Lexington Financial Services, LLC.
VRDN, 5.50%, 3/1/27,
LOC: LaSalle Bank * 2,200,000 2,200,000
Massachusetts Nursing Homes VRDN,
5.50%, 11/15/13, LOC:
American National Bank and Trust * 1,400,000 1,400,000
Meriter Hospital, Inc., VRDN, 5.75%,
12/1/16,
LOC: Firstar Bank * 9,550,000 9,550,000
Meriter Management Services, Inc.,
VRDN, 5.50%, 12/1/16,
LOC: Firstar Bank * 4,825,000 4,825,000
Mississippi Business Finance Authority
VRDN, 5.85%, 11/1/06,
LOC: Marshall & Ilsley Bank * 4,750,000 4,750,000
Mississippi Business Finance Authority
VRDN, 5.65%, 6/1/10,
LOC: National Bank of Detroit * 4,000,000 4,000,000
Mississippi Business Finance Authority
VRDN, 5.50%, 2/1/19,
GA: Sara Lee * 2,000,000 2,000,000
Montgomery Cancer Center, LLC.
VRDN, 5.65%, 10/1/12,
LOC: Southtrust Bank, AL * 4,170,000 4,170,000
Mount Vernon Industrial Economic
Development VRDN,
6.00%, 7/1/07, LOC: Citizens
National Bank, Confirming
LOC: Suntrust Bank * 1,430,000 1,430,000
Physicians Plus Medical Group
VRDN, 5.70%, 8/1/16,
LOC: LaSalle Bank * 4,030,000 4,030,000
Pleasant Hill, California Redevelopment
Agency VRDN, 5.70%,
8/1/26, LOC: Heller Financial, Confirming
LOC: Commerze Bank * 1,380,000 1,380,000
Public Service Electric & Gas Co.,
5.85%, 5/1/23, TOA:
Citibank, INSUR: AMBAC * 8,000,000 8,000,000
Richmond, Virginia Redevelopment
and Housing Authority
VRDN, 5.65%, 12/1/25, LOC:
Wachovia Bank and Trust * 4,235,000 4,235,000
Roosevelt Paper Co., VRDN,
5.45%, 6/1/12, LOC: Corestates * . 7,110,000 7,110,000
Rural Electric Coop. VRDN,
5.64%, 12/15/17, TOA:
Morgan Guaranty Trust * 14,890,000 14,890,000
San Leandro, California Multi Famil
y Housing VRDN, 5.75%,
10/1/27, LOC: Heller Financial,
Confirming LOC:
Commerze Bank * 2,255,000 2,255,000
Shawnee, Kansas VRDN, 5.80%,
12/1/12, LOC:
hase Manhattan * 7,000,000 7,000,000
South Central Communications Corp.
VRDN, 5.95%, 9/1/13,
LOC: Citizens National Bank,
Confirming LOC:
Suntrust Bank * 8,500,000 8,500,000
<PAGE>
Principal
Corporate Obligations - (Cont'd) Amount Value
St. Paul, Minnesota Housing and
Redevelopment Authority
VRDN, 5.75%, 6/1/15, LOC:
Credit Local de France * $2,500,000 $2,500,000
St. Paul, Minnesota Housing
and Redevelopment Authority
VRDN, 5.75%, 3/1/18, LOC:
Credit Local de France * 1,520,000 1,520,000
Sussex County, Delaware VRDN, 5.71%,
11/1/27, LOC:
Wilmington Trust Co. * 3,000,000 3,000,000
TLC Holdings, LLC. VRDN,
5.65%, 6/1/26, LOC:
Columbus Bank and Trust * 4,840,000 4,840,000
Triangle Funding, Ltd. VRDN,
5.69%, 11/15/98,
Overcollateralization: Credit Suisse * 7,000,000 7,000,000
Triangle Funding, Ltd. VRDN,
5.35%, 10/15/99 * 7,000,000 7,000,000
Ventura County, California,
5.74%, 11/1/98, INSUR: FSA 5,420,000 5,421,145
Vermont Economic VRDN, Series A,
5.65%, 12/8/98,
LOC: National Westminster Bank * 2,530,000 2,530,000
Washington State Housing Finance,
5.70%, 2/1/28, LOC:
US Bank - National Association * 1,840,000 1,840,000
Washington State Housing Finance,
5.70%, 2/1/28, LOC:
US Bank - National Association * 1,185,000 1,185,000
Washington State Housing Finance,
5.70%, 7/1/29, LOC:
Bank One, AZ * 2,980,000 2,980,000
Waukesha Health Systems, Inc.,
VRDN, 5.70%, 8/15/26,
LOC: Bank of America * 2,750,000 2,750,000
Westminster Asset Corp., VRDN,
5.75%, 4/1/22, LOC:
Wells Fargo Bank * 11,360,000 11,360,000
Whetstone Care Center, LLC.
VRDN, 5.71%. 1/1/18, LOC:
Fifth Third Bank * 3,275,000 3,275,000
Will County, Illinois VRDN,
5.34%, 8/1/28, LOC: LaSalle Bank * 4,000,000 4,000,000
Total Corporate Obligations (Cost $262,924,927) 262,924,927
Commercial Paper - 30.2%
Banco Del Istmo, 5.51%, 11/30/98,
LOC: Barclays Bank 8,000,000 7,926,533
Eureka Securitization, Inc., 5.52%, 11/20/98 5,000,000 4,961,667
Garanti Funding Corp., 5.39%,
4/30/99, LOC:
Bayerische Vereinsbk, A.G. 11,000,000 10,652,495
ING US Ins. Holdings., 5.50%, 10/26/98, GA:
International Neder Verz 5,000,000 4,980,903
Island Finance, 5.55%, 10/5/98,
Capital Maintenance
Agreement: Norwest Bank 5,600,000 5,596,547
Island Finance, 5.52%, 10/28/98,
Capital Maintenance
Agreement: Norwest Bank 9,000,000 ,962,740
Island
Finance, 5.51%, 11/24/98,
Capital Maintenance
Agreement: Norwest Bank 10,000,000 9,917,350 Kitty Hawk
Funding Corp., 5.54%,
10/16/98, LOC: Nationsbank 5,000,000 4,988,458
Kitty Hawk Funding Corp.,
5.49%, 1/29/99, LOC: Nationsbank 2,759,000 2,708,510
Kitty Hawk Funding Corp.,
5.48%, 2/26/99, LOC: Nationsbank 5,848,000 5,716,251
National Australia Funding,
5.20%, 2/25/99, GA: National
Australia Bank 6,000,000 5,872,600
Nebraska Public Power, 5.64%,
12/7/98, LOC: Bank of America,
Commerze Bank, Bank of Nova Scotia 6,000,000 6,000,000
Northwestern University, 5.53%,
10/20/98 5,000,000 4,985,407
Northwestern University, 5.51%,
11/10/98 2,000,000 1,987,756
Northwestern University, 5.52%,
11/10/98 5,000,000 4,969,333
Northwestern University, 5.48%,
12/17/98 4,750,000 4,694,325
<PAGE>
Principal
Commercial Paper - (Cont'd) Amount Value
Oakland, California, Alameda County,
Series A, 5.60%,
10/16/98, LOC: Canadian Imperial $12,600,000 $12,600,000
Princeton University, 5.53%, 10/9/98 5,300,000 5,293,487
Southern Electric Generating Co.,
5.68%, 10/9/98 7,000,000 6,991,164
Unibanco Uniao De Bancos,
5.48%, 12/29/98, LOC:
West Deutsche Landes 6,000,000 5,918,713
Vehicle Services of America, 5.52%,
11/16/98, LOC: Nationsbank 6,000,000 5,957,680
Total Commercial Paper (Cost $131,681,919) 131,681,919
Municipal Obligations - 6.2%
Illinois Housing Development Authority
VRDN, 5.74%, 12/1/21,
INSUR: AMBAC, TOA: Citibank * 3,905,000 3,905,000
Illinois Housing Development Authority
VRDN, 5.74%, 6/1/22
INSUR: AMBAC, TOA: Citibank * 1,590,000 1,590,000
Ohio State VRDN, 5.64%, 10/1/21,
LOC: INSUR: AMBAC,
TOA: Citibank * 6,500,000 6,500,000
Texas State VRDN, 5.67%, 12/1/27,
TOA: Citibank * 1,734,000 1,734,000
Village of Schaumberg, Illinois VRDN,
5.45%, 12/1/13,
BPA: First National Bank Chicago * 2,800,000 2,800,000
Village of Schaumberg, Illinois VRDN,
5.55%, 12/1/20,
BPA: First National Bank Chicago * 5,800,000 5,800,000
Virginia State Housing Development
Authority VRDN,
5.50%, 1/1/47 * 1,900,000 1,900,000
Virginia State Housing Development
Authority VRDN,
5.74%, 11/1/11, BPA: Citibank * 2,900,000 2,900,000
Total Municipal Obligations (Cost $27,129,000) 27,129,000
U.S. Government Agencies and Instrumentalities - 4.1%
Federal Home Loan Mortgage Corp.,
5.38%, 10/2/98 3,000,000 2,999,552
Federal National Mortgage Assn.,
5.435%, 10/29/98 5,000,000 4,978,864
Student Loan Marketing
Assn., 5.72%, 11/20/98 5,000,000 4,999,602
Student Loan Marketing Assn.,
5.49%, 2/18/99 5,000,000 5,000,000
Total U.S. Government Agencies and Instrumentalities
(Cost $17,978,018) 17,978,018
Total Investments (Cost $439,713,864) - 100.7% 439,713,864
Other assets and liabilities, net - (0.7%) (3,028,609)
Net Assets - 100%
$436,685,255
Net Assets Consist of:
Paid-in capital applicable to 436,679,710
shares of beneficial interest, unlimited number
of no par shares authorized
$436,681,525Undistributed net investment income 1,813
Accumulated net realized gain (loss)
on investments 1,917
Net Assets $436,685,255
Net Asset Value Per Share $1.00
Explanation of Guarantees:
BPA: Bond-Purchase Agreement
LOC: Letter of Credit
GA: Guarantee Agreement
TOA: Tender Option Agreement
INSUR: Insurance
Abbreviations:
VRDN: Variable Rate Demand Notes
Optional tender features give these securities a shorter effective maturity
date.
See notes to financial statements.
<PAGE>
Statement of Operations
Year Ended September 30, 1998
Net Investment Income
Investment Income
Interest income $28,744,173
Expenses
Investment advisory fee 1,254,573
Transfer agency fees and expenses 15,049
Trustees' fees and expenses 57,045
Administrative fees 250, 915
Custodian fees 65, 530
Registration fees 46,690
Reports to shareholders 20,112
Professional fees 10,802
Miscellaneous 39,072
Reimbursement from Advisor (1,038,689)
Total expenses 721,099
Fees paid indirectly (53,816)
Net expenses 667,283
Net Investment Income 28,076,890
Realized and Unrealized Gain (Loss) on Investments
Net realized gain (loss) on investments 6,285
Increase (Decrease) in Net Assets
Resulting From Operations $28,083,175
<PAGE>
Statements of Changes in Net Assets
Year Ended Year Ended
September 30, September 30,
Increase (Decrease) in Net Assets 1998 1997
Operations
Net investment income $28,076,890 $19,659,630
Net realized gain (loss)
on investments 6,285 (3,929)
Increase (Decrease) in Net Assets
Resulting From Operations 28,083,175 19,655,701
Distributions to shareholders from:
Net investment income: (28,075,575) (19,659,571)
Total distributions (28,075,575) (19,659,571)
Capital share transactions in
dollars and shares:
Shares sold 5,373,384,976 4,326,893,535
Reinvestment of
distributions 19,818,423 13,265,042
Shares redeemed (5,331,876,473) (4,096,022,244)
Total capital share
transactions 61,326,926 244,136,333
Total Increase (Decrease)
in Net Assets 61,334,526 244,132,463
Net Assets
Beginning of year 375,350,729 131,218,266
End of year (including
undistributed net investment
income of $1,813 and
$498 respectively) $436,685,255 $375,350,729
<PAGE>
Notes to Financial Statements
Note A - Significant Accounting Policies
General: The Calvert Institutional Prime Fund (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. 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.
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.
Estimates: The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amount of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses during the
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 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 .25% of average daily net assets. Under the terms of the
agreement, $110,189 was payable at year end.
Calvert Administrative Services Company, an affiliate of the Advisor, provides
administrative services to the Fund for an annual fee, payable monthly, of
.05% of the average daily net assets of the Fund. Under the terms of the
agreement, $23,543 was payable at year end.
The Advisor voluntarily reimbursed the Fund for advisory fees, administrative
fees, and other operating expenses of $1,038,689.
Calvert Distributors, Inc., an affiliate of the Advisor, is the distributor
and principal underwriter for the Fund.
Calvert Shareholders Services, Inc., an affiliate of the Advisor, is the
shareholder servicing agent for the Fund. Under the terms of the agreement,
$507 was payable at year end. National Financial Data Services, Inc., is the
transfer and dividend disbursing agent.
Each Trustee who is not affiliated with the Advisor receives an annual fee of
$20,500 plus up to $1,500 for each Board and Committee meeting attended.
Trustee's fees are allocated to each of the funds served.
Note C - Investment Activity
The cost of investments owned at September 30, 1998 was substantially the same
for federal income tax and financial reporting purposes.
As a cash management practice, the Fund may sell or purchase short-term
variable rate demand notes from other Portfolios managed by the Advisor. All
transactions are executed at independently derived prices.
Note D - Line of Credit
A financing agreement is in place with all Calvert Group Funds and State
Street Bank and Trust Company ("the Bank"). Under the agreement, the Bank is
providing an unsecured line of credit facility, in the aggregate amount of $50
million ($25 million committed and $25 million uncommitted), to be accessed by
the Funds for temporary or emergency purposes only. Borrowings under this
facility bear interest at the overnight Federal Funds Rate plus .50% per
annum. A commitment fee of .10% per annum will be incurred on the unused
portion of the committed facility which will be allocated to all participating
funds. This fee is paid quarterly in arrears. The Fund had $55,701 outstanding
borrowings at an interest rate of 6.25% at September 30, 1998.
Financial Highlights
Years Ended
Sept.30, Sept. 30, Sept. 30,
1998 1997 1996
Net asset value, beginning $1.00 $1.00 $1.00
Income from investment operations
Net investment income .056 .055 .040
Distributions from
Net investment income (.056) (.055) (.040)
Net asset value, ending $1.00 $1.00 $1.00
Total return 5.74% 5.55% 3.99%
Ratios to average net assets:
Net investment income 5.59% 5.55% 4.80%
Total expenses+ .14% .07% .73%
Net expenses .13% .06% .69%
Expenses reimbursed .21% .31% .47%
Net assets, ending (in thousands) $436,685 $375,351 $131,218
Number of shares outstanding,
ending (in thousands) 436,680 375,353 131.217
Years Ended
September 30, September 30,
1995 1994
Net asset value, beginning $1.00 $1.00
Income from investment operations
Net investment income .045 .028
Distributions from
Net investment income (.045) (.028)
Net asset value, ending $1.00 $1.00
Total return 4.55% 2.78%
Ratios to average net assets:
Net investment income 4.53% 2.75%
Total expenses+ 1.41% N/A
Net expenses 1.39% 1.23%
Expenses reimbursed - -
Net assets, ending (in thousands) $26,775 $99,973
Number of shares outstanding,
ending (in thousands) 26,821 100,024
+ 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.
N/A Disclosure not applicable to prior periods.
