september 30, 1999
annual
report
Calvert cash
reserves Institutional prime fund
<PAGE>
Table
of
Contents
Shareholder
Letter
1
Report of Independent Accountants
2
Statement
of Net Assets
3
Statement
of Operations
7
Statements
of Changes in
Net Assets
8
Notes to
Financial Statements
9
Financial Highlights
10
Y2K Update
11
Dear Shareholders:
This year has been marked by a turn around
in interest rate expectations. The series of
interest rate hikes and tightening bias
announcements have moved rates sharply
higher in the short end of the bond markets.
Rapidly rising rates in Japan and England,
and a fast growing US economy have also
combined to create market expectations of
potential inflation. The Fed has been
keeping a diligent watch over rising
employment levels, rising stock prices, and
a weakening dollar. Over the course of the
year they have increased the
discount rate once and the federal funds
rate once. In addition, they have adopted a
tightening bias, meaning they feel one or
more rate hikes may be needed soon to keep
inflation under control.
Yields on Treasury bills have not moved as
much as on money market instruments because
of the reduction in treasury financing
needs. This, combined with year-end
concerns, could keep money market and
treasury supply low for the remainder of the
year.
STRATEGY
The Fund started the year with an average
maturity of 53 days. In anticipation of
rising rates, we shortened the Fund to 30
days by the end of December 1998. As rates
moved higher throughout the start of 1999,
the Fund purchased higher yielding
securities, thereby extending the maturity
back out to 57 days. The Fund continues to
invest heavily in floating rate instruments
that will
reset at higher levels as interest rates
move higher.
PERFORMANCE
For the past 12 months, the Fund returned
5.18%, outperforming the Lipper
Institutional Money Market Funds average of
4.84%
OUTLOOK
The Fed will continue to carefully monitor
the economy for any signs of inflation.
Concerns over very low unemployment and
rising wage inflation have fueled the fires
for still higher rates. Market participants
are looking toward more rate increases in
late 1999 or early 2000. The wild card will
be Year 2000 worries. The Fed has increased
liquidity for year-end by announcing changes
to the requirements for borrowing at the
discount
window but wary portfolio managers continue
to keep large supplies of cash available for
any unforeseen demands.
We will continue to structure the Fund with
high liquidity as the year-end approaches so
that we may take advantage of any additional
Fed moves and any additional liquidity
demands of the shareholders.
Sincerely,
Laurie Webster
Barbara J. Krumsiek
Portfolio Manager
President and CEO
October 27, 1999
Quality Structure of Portfolio
Rule 2a-7 under the Investment Company Act
of 1940 applies to every money market fund
to ensure that a money market fund invests
only in high quality obligations, takes
minimal credit risks, and has a stable price
per share. The Fund invests in accordance
with Rule 2a-7 under the Investment Company
Act of 1940, as amended.
<PAGE>
Report of independent accountants
To the Board of Trustees of Calvert Cash
Reserves and Shareholders of Institutional
Prime Fund:
In our opinion, the accompanying statement
of net assets and the related statement of
operations, the statements of changes in net
assets and the financial highlights present
fairly, in all material respects, the
financial position of Institutional Prime
Fund (the sole series of Calvert Cash
Reserves, hereafter referred to as the
"Fund"), at September 30, 1999, and the
results of its operations, the changes in
its net assets and the financial highlights
for
each of the periods presented, in conformity
with accounting principles generally
accepted in the United States. These
financial statements and the financial
highlights (hereafter referred to as
"financial statements") are the
responsibility of the Fund's management; our
responsibility is to express an opinion on
these financial statements based on our
audits. We conducted our audits of these
financial statements in accordance with
auditing standards generally accepted in the
United States, which require that we plan
and perform the audit to obtain reasonable
assurance about whether the financial
statements are free of material
misstatement. An audit includes examining,
on a test basis, evidence supporting the
amounts and disclosures in the financial
statements, assessing the accounting
principles used and significant estimates
made by management, and evaluating the
overall financial statement presentation. We
believe that our audits, which included
confirmation of securities at September 30,
1999 by correspondence with custodians and
brokers, provide a reasonable basis for the
opinion expressed above.
PricewaterhouseCoopers LLP
Baltimore, Maryland
November 10, 1999
<PAGE>
STATEMENT OF NET ASSETS
September 30, 1999
Principal
TAXABLE VARIABLE RATE DEMAND
NOTES - 58.1% Amount Value
Alamo Heights TX Higher Education Facilities
VRDN, 5.45%, 4/1/07, LOC Bank of Ohio.
$5,475,000 $5,475,000 Alsip Motel Limited
Partnership VRDN, 5.83%, 5/1/24, LOC: FHLB
Indianapolis 3,850,000
3,850,000 American Healthcare Funding VRDN,
5.45%,
5/1/27, LOC: Lasalle Bank 5,000,000
5,000,000 3/1/29, LOC:
Lasalle Bank 3,900,000 3,900,000
Arkansas State Development Finance Authority
VRDN, 5.43%, 8/1/30, LOC: FNB Chicago
17,750,000 17,750,000 Barton Healthcare
VRDN, 5.43%, 2/15/25, LOC: American National
Bank and Trust 1,600,000 1,600,000
Bel Air VRDN, 5.45%, 12/1/15, LOC: Amsouth
Bank
5,980,000 5,980,000 Berks County
Pennsylvania IDA VRDN, 5.50%, 7/1/16,
LOC: First Union Bank 3,000,000 3,000,000
Betters Group VRDN, 5.45%, 2/1/12, LOC:
Century National Bank and Trust,
C/LOC: Mellon Bank 50,000 50,000
Bexar County Texas Health Facilities
Development VRDN, 5.09%, 2/1/22, LOC:
Kredietbank 3,340,000 3,340,000
Blount/Strange Realty Holdings VRDN, 5.45%,
7/1/16, LOC: Regions Bank
4,125,000 4,125,000 Boone County
Kentucky Industrial Building Revenue VRDN,
5.65%, 11/1/08,
LOC: Bank of America 800,000 800,000
California Housing Finance Agency VRDN,
5.40%, 8/1/19, LOC: Bank of America
7,100,000 7,100,000 California
Pollution Control VRDN,
5.78%, 7/1/06, LOC: Wells Fargo Bank
1,200,000 1,200,000 5.83%, 6/1
/14, LOC: Comerica Bank 2,960,000 2,960,000
California Statewide Community Development
VRDN,
5.30%, 5/1/27, LOC: Heller Financial,
C/LOC: Commerzbank, AG
950,000 950,000 5.80%, 7/1/27, LOC:
Heller Financial, C/LOC: Commerzbank, AG
525,000 525,000 Capital One Funding
VRDN, 5.43%, 8/3/15, LOC: Bank One Ohio
5,200,000 5,200,000 Capreit Carmel
Financial VRDN, 5.65%, 2/1/01, LOC: Credit
Suisse
10,500,000 10,500,000 Chicago Illinois
VRDN, 5.43%, 2/1/19, LOC: Lasalle Bank
1,870,000 1,870,000 Cloquet Industrial
Facilities VRDN, 5.43%, 4/1/26, LOC:
Wachovia
Bank and Trust 8,800,000 8,800,000
Colorado Health Facilities Authority Revenue
VRDN,
5.09%, 2/1/13, LOC: Kredietbank
3,685,000 3,685,000 5.75%, 2/1
/25, LOC: Kredietbank 5,115,000 5,115,000
5.09%, 2/1/25, LOC: Kredietbank
5,315,000 5,315,000 4.85%, 11/
1/26, LOC: Kredietbank 5,850,000 5,850,000
Columbus Georgia IDA Revenue VRDN, 5.55%,
1/1/05, LOC: Fleet Bank
750,000 750,000 Eagles Landing
Limited VRDN, 5.65%, 9/1/26, LOC: Regions
Bank
6,370,000 6,370,000 550 West 14th Place
Illinois, VRDN, 5.55%, 2/1/29, LOC: Harris
Trust
4,900,000 4,900,000 Florida Housing
Finance Agency VRDN, 6.40%, 7/1/23, LOC:
Heller Financial, C/LOC: Commerzbank, AG
750,000 750,000 Four Fishers VRDN,
6.13%, 4/1/24, LOC: Lasalle Bank
6,595,000 6,595,000 Glacier 600 Revenue
Bond VRDN, 5.40%, 11/1/16, LOC: US Bank -
National Association 3,025,000 3,025,000
Health Midwest Ventures Group, VRDN, 5.43%,
8/1/19, LOC: Bank of America
5,000,000 5,000,000 Healthrack Sports
and Wellness VRDN, 5.43%, 2/15/27, LOC:
American National Bank and Trust
1,900,000 1,900,000 Illinois Housing
Development Authority VRDN,
5.475%, 12/1/21, INSUR: AMBAC, LOC:
Citibank
3,905,000 3,905,000 5.425%, 6/1/22,
INSUR: AMBAC, LOC: Citibank
1,590,000 1,590,000 Indiana State
Development Finance Authority VRDN, 7.25%,
9/1/16 LOC: National City Bank 29,800,000
29,800,000 Kit Carson County Colorado VRDN,
5.55%, 6/1/27, LOC: Norwest Bank
2,000,000 2,000,000 La Mirada
California IDA VRDN, 5.43%, 12/1/26,
LOC: First National Bank Chicago
3,250,000 3,250,000 Liliha Partners
Hawaii VRDN, 5.45%, 8/1/24, LOC: First
National Bank Chicago
3,500,000 3,500,000 Maine Financial
Authority VRDN, 5.75%, 6/1/08, LOC: Fleet
Bank
7,940,000 7,940,000
<PAGE>
Principal
TAXABLE VARIABLE RATE DEMAND
NOTES - (Cont'd) Amount Value
Massachusetts Nursing Homes VRDN, 5.43%,
11/15/13, LOC: American National Bank and
Trust $1,350,000$1,350,000Maricopa
County Arizona IDA VRDN, 5.50%, 2/1/29, LOC:
Banque National de Paris 1,855,000
1,855,000 Meriter Hospital VRDN, 5.45%,
12/1/16, LOC: Firstar Bank
1,825,000 1,825,000 Meriter Management
Services VRDN, 5.50%, 12/1/16, LOC: Firstar
Bank 4,745,000
4,745,000 Michigan State Hospital Financial
Authority VRDN, 5.40%, 5/15/28, LOC:
National Bank of Detroit 5,000,000 5,000,000
Mississippi Business Finance Authority VRDN,
5.65%, 11/1/06, LOC: Marshall & Ilsley
Bank
4,750,000 4,750,000 5.45%, 6/1
/10, LOC: National Bank of Detroit
3,700,000 3,700,000 5.55%, 12/
1/13, LOC: FNB Boston 2,500,000 2,500,000
5.43%, 2/1/19, GA: Sara Lee 2,000,000
2,000,000 Montgomery Cancer Center VRDN,
5.45%, 10/10/12, LOC: Southtrust Bank,
Alabama 4,020,000 4,020,000
Montgomery County New York VRDN, 5.55%,
5/1/25, LOC: FHLB
New York 3,610,000
3,610,000 Montgomery Surgical Center VRDN,
5.45%, 3/1/24, LOC: Suntrust Bank
3,870,000 3,870,000 New Hampshire
Business Financial Authority VRDN, 5.55%,
11/1/17, LOC: Norwest Bank 5,000,000
5,000,000 New Jersey Sports and Expo
Authority VRDN, 5.475%, 1/1/17, INSUR:
AMBAC, LOC: Citibank 1,000,000 1,000,000
North Greenbush New York IDA VRDN, 5.70%,
11/1/08, LOC: Abn Amro Bank
4,400,000 4,400,000 Ohio State VRDN,
5.375%, 10/1/21, INSUR: AMBAC, TOA: Citibank
6,500,000 6,500,000 Physicians Plus
Medical Group VRDN, 6.00%, 8/1/16, LOC:
LaSalle Bank
12,100,000 12,100,000 Pleasant Hill
California Redevelopment Agency VRDN, 5.80%,
8/1/26, LOC: Heller Financial, C/LOC:
Commerzbank, AG
180,000 180,000Richmond Virginia
Redevelopment and Housing Authority VRDN,
5.40%, 12/1/25,
LOC: Wachovia Bank and Trust 4,235,000
4,235,000 Roosevelt Paper Company VRDN,
5.50%, 6/1/12, LOC: Corestates
6,135,000 6,135,000 Sacramento County
California VRDN, 5.35%, 7/1/22, LOC: Bayer
Lands Bank
1,700,000 1,700,000 San Joaquin
Mariners Association VRDN, 5.50%, 7/1/29,
LOC: Credit Suisse
1,900,000 1,900,000 San Leandro
California Multifamily Housing VRDN, 5.80%,
10/1/27, LOC: Commerzbank, AG 2,255,000
2,255,000 South Central Communications
Corporation VRDN, 5.43%, 6/1/13, LOC:
Citizens National Bank,
C/LOC: Suntrust Bank 9,870,000 9,870,000
St. Josephs County Economic Development
VRDN, 5.83%, 6/1/27, LOC: FHLB Indianapolis
865,000 865,000 St. Paul Minnesota
Housing and Redevelopment Authority VRDN,
5.40%, 6/1/15, LOC: Credit Local de France
2,400,000 2,400,000 St. Paul Minnesota
Housing and Redevelopment Authority VRDN,
5.40%, 3/1/18, LOC: Credit Local de France
1,220,000 1,220,000 Sault Marie Tribe
Building VRDN, 5.651%, 6/1/03, LOC: First
American Bank
4,245,000 4,245,000 Shawnee Private
Activity VRDN, 5.55%, 12/01/12, LOC: Chase
Manhattan 6,700,000
6,700,000 Suffolk County New York IDA VRDN,
5.40%, 12/15/07,
LOC: Chase Manhattan 3,635,000 3,635,000
Sussex County Delaware VRDN, 5.78%, 11/1/27,
LOC: Wilmington Trust Co.
3,000,000 3,000,000 Texas State VRDN,
5.405%, 12/1/27, TOA: Citibank
1,384,000 1,384,000 Triangle Funding
Limited VRDN, 5.35%, 10/15/99, US Government
Collateral 7,000,000
7,000,000 Village of Schaumberg Illinois
VRDN,
5.48%, 12/1/13, BPA: First National Bank
Chicago
2,800,000 2,800,000 5.48%, 12/
1/20, BPA: First National Bank Chicago
3,600,000 3,600,000 Virginia State
Housing Development Authority VRDN,
5.475%, 11/1/11, BPA: Citibank
2,900,000 2,900,000 5.35%, 1/1
/47, BPA: Citibank 8,000,000 8,000,000
Washington State Housing Finance,
5.40%, 2/1/28, LOC: US Bank - National
Association
3,025,000 3,025,000 5.40%, 7/1
/29, LOC: Bank One Arizona
2,760,000 2,760,000 Waukesha Health
Systems VRDN, 5.45%, 8/15/26, LOC: Bank of
America 2,100,000
2,100,000
Total Taxable Variable Rate Demand
Notes (Cost $345,349,000)
345,349,000
<PAGE>
Principal
CORPORATE OBLIGATIONS - 19.7% Amount
Value
Bayereische Landesbank New York, 5.875%,
4/7/00
$9,500,000 $9,499,589 Bear Stearns Co,
Inc.
6.50%, 7/05/00 13,000,000 13,076
,570 6.75%, 8/15/00 10,000,000
10,063,400 CIT Group Holdings, Inc.,
6.125%, 11/15/99 9,000,000 9,012,799
5.875%, 03/10/00 3,000,000 3,002,384
Dutchess County New York, 5.93%,
11/15/99(Mandatory put 11/15/99),
BPA: Landesbank Hessen-Thuringen, INSUR:
MBIA
3,000,000 3,002,733 Ford Motor Credit,
7.30%, 5/9/00 5,000,000 5,046,605
Merrill Lynch, 6.70%, 8/1/00 11,000,000
11,068,090 New Jersey Sports and Expo
Authority, 6.00%, 3/1/00, LOC: FSA
2,920,000 2,925,582 Norwest Financial
Inc., 6.05%, 11/19/994,000,000 4,005,420 S
ara Lee Corporation,
5.70%, 7/14/00 1,000,000 1,000,030
5.75%, 7/14/00 4,000,000 4,001,623
Transmission Agency of Northern California,
5.40%, 11/1/99, LOC: Westdeutsche Landes
5,600,000 5,600,000 United Healthcare
Corporation, 5.65%, 12/1/99
5,500,000 5,500,000 Vermont Economic,
Series B, 5.50%,12/02/99, LOC: National
Westminster Bank 3,475,000 3,475,000
Virginia Electric and Power, 5.875%, 4/1/00
6,000,000 6,002,488 Nebraska Public
Power,
5.11%, 10/12/99, LOC:Bank of
America,Toronto Dominion
5,000,000 5,000,000 5.14%, 11/
03/99, LOC:Bank of America,Toronto Dominion
5,000,000 5,000,000
Oakland California Alameda County, Series A,
5.35%, 10/19/99, LOC: Canadian Imperial
10,800,000 10,800,000
Total Corporate Obligations (Cost
$117,082,313) 117,082,313
COMMERCIAL PAPER - 18.6%
Baltimore Gas and Electric Company, 5.50%,
7/15/00,
2,470,000 2,464,146 Barton Capital
Corporation, 5.18%, 10/5/99, LLC: Societe
Generale
15,000,000 14,991,367 Commerzbank New
York Branch VRDN, 5.08%, 2/16/00
5,000,000 4,999,362 Deutsche Bank
Financial, 7.00%, 2/1/00 6,000,000 5,896,636
Duke University, 5.35%, 11/29/99
14,500,000 14,372,863 ING America
Insurance Holdings., 5.19%, 11/04/99, GA:
International Neder Verz 10,000,000
9,950,983 Island Finance Puerto Rico, Inc.,
5.41%, 1/18/00, LOC: Norwest Bank
7,000,000 6,885,338 Jefferson Pilot
Corporation,
5.70%, 2/02/00 10,000,000 9,803,
667 5.41%, 2/14/00 7,000,000 6,856,936
Market Street Funding Corporation, 5.55%,
10/1/99
20,000,000 20,000,000 Royal Bank of
Canada, 5.12%, 3/22/00 4,500,000 4,499,386
Southern Electric Generating Company, 5.49%,
10/12/99
10,000,000 9,983,225
Total Commercial Paper (Cost
$110,703,909) 110,703,909
<PAGE>
Principal
CERTIFICATES OF DEPOSIT - 2.5% Amount
Value
Bank of Montreal, Chicago. 5.090%, 4/17/00
$5,000,000 $4,999,212
Deutsche Bank, New York. 5.97%, 9/05/00
10,000,000 9,996,441
Total Certificates of Deposit (Cost
$14,995,653) 14,995,653
U.S. GOVERNMENT AGENCY OBLIGATIONS 2.8%
Federal Home Loan Mortgage Discount Notes,
5.40%, 2/2/00
5,000,000 4,907,000 Federal National
Mortgage Association Discount Notes,
5.25%, 12/13/99 6,906,000 6,832,480
5.40%, 2/2/00 5,000,000 4,907,000
Total U.S. Government Agency
Obligations(Cost $16,646,480)
16,646,480
TOTAL INVESTMENTS (Cost $604,777,355)
- - 101.7%
604,777,355
Other assets and liabilities, net - (1.7%)
(9,952,957)
Net Assets - 100% $594,824,398
Net Assets Consist of:
Paid-in capital applicable to 594,812,766
shares of beneficial interest,
unlimited number of no par shares
authorized $594,814,581Undis
tributed net investment income (loss)
9,817
Net Assets $594,824,398
Net Asset Value Per Share
$1.00
Explanation of Guarantees:
BPA: Bond-Purchase Agreement
LOC: Letter of Credit
C/LOC: Confirming Letter of Credit
GA: Guarantee Agreement
INSUR: Insurance
TOA: Tender Option Agreement
Abbreviations:
VRDN: Variable Rate Demand Notes
IDA: Industrial Development Authority
See notes to financial statements.
<PAGE>
Statement of Operations
Year ended September 30, 1999
Net Investment Income
Investment Income
Interest income $31,204,035
Expenses
Investment advisory fee
1,482,590
Transfer agency fees and expenses
11,881
Trustees' fees and expenses
59,538
Administrative fees 296,518
Custodian fees 92,154
Accounting fees 42,440
Registration fees 68,171
Reports to shareholders
21,258
Professional fees 18,450
Miscellaneous 41,860
Total expenses 2,134,860
Reimbursement from Advisor
(816,535)
Fees paid indirectly
(62,767)
Net expenses 1,255,558
Net Investment Income 29,948,477
Realized and Unrealized Gain (Loss) on
Investments
Net realized gain (loss) on investments
1,698
Increase (Decrease) in Net Assets
Resulting From Operations
$29,950,175
See notes to financial statements.
<PAGE>
Statements of Changes in Net Assets
Year EndedYear En
ded
September 30,Sept
ember 30,
Increase (Decrease) in Net Assets
1999 1998
Operations
Net investment income $29,948,477$28,07
6,890
Net realized gain (loss) on investments
1,698 6,285
Increase (Decrease) in Net Assets
Resulting From Operations 29,950,175
28,083,175
Distributions to shareholders from:
Net investment income (29,944,088)(28,0
75,575)
Total distributions (29,944,088)(28,0
75,575)
Capital share transactions in dollars and
shares:
Shares sold 6,188,045,0895,37
3,384,976
Reinvestment of distributions 22,089,728
19,818,423
Shares redeemed (6,052,001,761)(5
,331,876,473)
Total capital share transactions
158,133,056 61,326,926
Total Increase (Decrease) in Net Assets
158,139,143 61,334,526
Net Assets
Beginning of year 436,685,255375,35
0,729
End of year (including undistributed net
investment
income of $9,817 and $1,813 respectively)
$594,824,398 $436,685,255
See notes to financial statements.
<PAGE>
Notes to Financial Statements
Note A -- Significant Accounting Policies
General: 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 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 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 .25% of average daily net
assets. Under the terms
of the agreement, $135,222 was payable at
year end.
Calvert Administrative Services Company,
Inc., 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, $27,646 was
payable at period end.
The Advisor voluntarily reimbursed the Fund
for expenses of $816,535.
Calvert Distributors, Inc., an affiliate of
the Advisor, is the distributor and
principal underwriter for the Fund.
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
$5,840 for the year ended September 30,
1999. Under the terms of the agreement, $603
was payable at year end. 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 served.
Note C -- Investment Activity
The cost of investments owned at September
30, 1999 was 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.
The Board has determined that all
transactions are executed at independently
derived prices.
<PAGE>
Note D -- Line of Credit
A financing agreement is in place with all
Calvert Group Funds (except for Calvert
Social Investment Fund Managed Index
Portfolio) and State Street Bank and Trust
Company ("the Bank"). Under the agreement,
the Bank is providing an unsecured line of
credit facility, in the aggregate amount of
$50 million ($25 million committed and $25
million uncommitted), to be accessed by the
Funds for temporary or emergency purposes
only. Borrowings under this facility bear
interest at the overnight Federal Funds Rate
plus .50% per annum. A commitment fee of
.10% per annum will be incurred on the
unused portion of the committed facility
which will be allocated to all participating
funds. The Fund had no loans outstanding
pursuant to this line of credit at September
30, 1999.
Financial Highlights
Years Ended
September 30,Sept
ember 30,
1999 1998
Net asset value, beginning $1.00
$1.00
Income from investment operations
Net investment income .051 .056
Distributions from
Net investment income (.051) (.056)
Net asset value, ending $1.00 $1.00
Total return 5.18%
5.74%
Ratios to average net assets:
Net investment income 5.05% 5.59%
Total expenses .36% .35%
Expenses before offsets .22%
.14%
Net expenses .21% .13%
Net assets, ending (in thousands)
$594,824 $436,685
Number of shares outstanding,
ending (in thousands) 594,813 436,680
Years Ended
September 30,September 30,Sept
ember 30,
1997 1996 1995
Net asset value, beginning $1.00 $1.00
$1.00
Income from investment operations
Net investment income.055 .040 .045
Distributions from
Net investment income(.055)(.040) (.045)
Net asset value, ending$1.00$1.00 $1.00
Total return 5.55% 3.99%
4.55%
Ratios to average net assets:
Net investment income5.55%4.80% 4.53%
Total expenses .38% 1.20% 1.41%
Expenses before offsets .07% .73%
1.41%
Net expenses .06% .69% 1.39%
Net assets, ending (in thousands) $375,351
$131,218 $26,775
Number of shares outstanding, ending (in
thousands)
375,353 131,217 26,821
<PAGE>
Calvert Group and the Year 2000
Three years ago, Calvert Group recruited a
task force to address the Y2K compliance
problem. Headed by our Vice President of
Information Technology, the task force
developed a comprehensive Year 2000
Initiative that addressed all software and
hardware systems that could possibly be
susceptible to year-2000 problems.
Today we can report that we have completed
100 percent of our year-2000 Initiative and
are currently monitoring our systems to
ensure that they will remain compliant.
These are just some of the steps Calvert
Group has taken over the past 36 months:
Inventory. To safeguard our inventory
systems we documented all hardware and
software systems used by Calvert Group.
Assessment. Our system engineers made
an extensive evaluation of the readiness of
each system and its susceptibility to year-
2000 problems.
Remediation. We have modified
software codes, upgraded hardware, improved
data interfaces and applied upgrades.
Testing. We have deployed year-2000
test environments and executed test plans
with dates from 1999 through 2000 and beyo
nd.
Implementation. We have released our
modified software, deployed upgraded
hardware and coordinated with business par
tners where data interfaces have changed.
Vendor Compliance. All significant
third-party vendors, including subadvisors,
have been contacted and reported Y2K compl
iance.
Finally, Calvert Group will re-test
continuously through the remainder of
1999 and into 2000 to ensure that operating
platforms, third-party software, and
interfaces to other systems remain stable
throughout the rollover to the year 2000.
If you have any questions regarding the Year
2000 issue, please send e-mail
to [email protected] or call
1.800.368.2748.
Calvert Group's Web site, www.calvert.com
and our Voice Response Unit (800.368.2745)
will be operational Saturday, January 1,
2000 and completely updated to include all
account activity through year-end 1999. We
encourage you to use either system to verify
the status of your account. A customer
service representative will be available to
assist you Monday,
January 3, 2000.
<PAGE>
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<PAGE>
Calvert
Cash
Reserves
Institutional
Prime
Fund
Principal Underwriter
Calvert Distributors, Inc.
4550 Montgomery Avenue
Suite 1000 North
Bethesda, Maryland 20814
Calvert Group
INformation
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
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>
