MARCH 31, 2000
SEMI-ANNUAL
REPORT
CALVERT CASH
RESERVES INSTITUTIONAL PRIME FUND
<PAGE>
TABLE
OF
CONTENTS
SHAREHOLDER
LETTER
1
STATEMENT
OF NET ASSETS
2
STATEMENT
OF OPERATIONS
6
STATEMENTS
OF CHANGES IN
NET ASSETS
7
NOTES TO
FINANCIAL STATEMENTS
8
FINANCIAL HIGHLIGHTS
9
DEAR SHAREHOLDERS:
DURING THE SIX-MONTH PERIOD ENDED MARCH 31, 2000, THE FEDERAL OPEN MARKET
COMMITTEE (FOMC) RAISED THE FEDERAL FUNDS RATE THREE TIMES FROM 5.25% TO 6.00%.
THEIR INTENTION WAS TO KEEP THE ECONOMY GROWING, BUT AT A SLOWER PACE IN ORDER
TO KEEP INFLATION IN CHECK. THE U.S. ECONOMY HAS SHOWN SOME SIGNS OF INFLATION
IN MANUFACTURING AND COMMODITY PRICES. IN ADDITION, LABOR MARKETS REMAIN
EXTREMELY TIGHT WITH UNEMPLOYMENT HOVERING AROUND 4%. THEREFORE, THE FED IS
STILL IN A TIGHTENING MODE WITH MORE RATE INCREASES EXPECTED IN THE NEAR FUTURE.
WITH FED FUNDS INCREASING, SHORT-TERM MONEY MARKET RATES SPIKE HIGHER AS WELL.
WE SHORTENED THE WEIGHTED AVERAGE MATURITY OF THE FUND TO 27 DAYS AT THE END OF
THE YEAR TO TAKE ADVANTAGE OF HIGHER RATES ON VARIABLE RATE DEMAND NOTES AND
ALSO TO KEEP THE PORTFOLIO INVESTED IN VERY LIQUID SECURITIES.
Y2K WAS A NON-EVENT AS FAR AS THE GENERAL PUBLIC AND THE ECONOMY WERE CONCERNED.
HOWEVER, FEARS OF DISRUPTION AT THE END OF THE YEAR CAUSED SOME SHORT TERM RATES
TO SPIKE HIGHER FOR A SHORT PERIOD OF TIME. IN PARTICULAR, THE LONDON INTERBANK
OFFERED RATE (LIBOR) ROSE MUCH HIGHER AT YEAR-END. SINCE SOME OF THE SECURITIES
IN THE PORTFOLIO USE LIBOR AS A BENCHMARK, THE FUND BENEFITED FROM THE INCREASE
IN THESE RATES.
BY THE END OF THE FIRST QUARTER, WE EXTENDED THE AVERAGE MATURITY OF THE FUND TO
36 DAYS AS THE MARKET PRICED IN ADDITIONAL RATE HIKES BY THE FED.
PERFORMANCE
FOR THE PAST 6 MONTHS, THE FUND RETURNED 2.89%, VERSUS THE LIPPER INSTITUTIONAL
MONEY MARKET = FUNDS AVERAGE OF 2.72%.
OUTLOOK
THE U. S. ECONOMY CONTINUES TO EXPAND AT A BLISTERING PACE. WITH THE EXTREMELY
TIGHT LABOR MARKET AND CONSUMER PURCHASING POWER STILL IN HIGH GEAR, WE EXPECT
THE FED WILL CONTINUE TO RAISE RATES UNTIL THE ECONOMY SLOWS TO A MORE
ACCEPTABLE LEVEL OF GROWTH. ACCORDINGLY, WE WILL KEEP THE AVERAGE MATURITY OF
THE FUND SHORT OF THE INDUSTRY AVERAGE TO TAKE ADVANTAGE OF STILL HIGHER RATES
AS SECURITIES IN THE PORTFOLIO MATURE. WE WILL ALSO WAIT FOR SIGNS THAT THE
ECONOMY IS SLOWING BEFORE WE LENGTHEN THE MATURITY OF THE FUND ANY FURTHER.
SINCERELY,
THOMAS A. DAILEY BARBARA J. KRUMSIEK
PORTFOLIO MANAGER PRESIDENT AND CEO
APRIL 28, 2000
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 SEEKS TO MAINTAIN A STABLE PRICE
PER SHARE. THE FUND INVESTS IN ACCORDANCE WITH RULE 2A-7 UNDER THE INVESTMENT
COMPANY ACT OF 1940, AS AMENDED.
<PAGE>
STATEMENT OF NET ASSETS
MARCH 31, 2000
PRINCIPAL
TAXABLE VARIABLE RATE DEMAND NOTES - 72.6% AMOUNT VALUE
50 WEST 14TH PLACE ILLINOIS, 6.25%, 2/1/29, LOC: HARRIS TRUST
$4,800,000 $4,800,000
ALABAMA INCENTIVES FINANCING AUTHORITY SPECIAL OBLIGATION, 6.125%, 10/1/29,
INSUR: AMBAC, BPA: SOUTHTRUST BANK, AL 17,425,000 17,425,000
ALSIP MOTEL LP, 6.33%, 5/1/24, LOC: FHLB INDIANAPOLIS
3,850,000 3,850,000
AMERICAN HEALTHCARE FUNDING:
6.20%, 5/1/27, LOC: LASALLE BANK 5,000,000 5,000,000
6.20%, 3/1/29, LOC: LASALLE BANK 3,900,000 3,900,000
ARKANSAS STATE DEVELOPMENT FINANCE AUTHORITY, 6.20%, 8/1/30, LOC: FNB CHICAGO
11,800,000 11,800,000
BALTIMORE COUNTY MARYLAND REVENUE, 6.15%, 1/1/29, LOC: FIRST UNION BANK, NC
4,800,000 4,800,000
BARDSTOWN KENTUCKY INDUSTRIAL BUILDING REVENUE, 6.20%, 10/1/19, LOC: BANK ONE
OHIO 6,200,000 6,200,000
BARTON HEALTHCARE, 6.20%, 2/15/25, LOC: AMERICAN NATIONAL BANK AND TRUST
6,140,000 6,140,000
BEL AIR, 6.20%, 12/1/15, LOC: AMSOUTH BANK 6,245,000 6,245,000
BERKS COUNTY PENNSYLVANIA IDA, 6.24%, 7/1/16,
LOC: FIRST UNION BANK 3,000,000 3,000,000
BETTERS GROUP, 6.20%, 2/1/12, LOC: CENTURY NATIONAL BANK AND TRUST,
CONFIRMING LOC: MELLON BANK 45,000 45,000
BEXAR COUNTY TEXAS HEALTH FACILITIES DEVELOPMENT, 6.25%, 2/1/22, LOC:
KREDIETBANK 3,255,000 3,255,000
BOTSFORD MICHIGAN GENERAL HOSPITAL REVENUE, 6.15%, 2/15/27, LOC: MICHIGAN
NATIONAL 3,450,000 3,450,000
CALIFORNIA HOUSING FINANCE AGENCY:
6.65%, 9/1/00 4,800,000 4,800,000
6.15%, 2/1/23, INSUR: FSA, BPA: CALSTERNS 7,500,000 7,500,000
6.15%, 2/1/23, INSUR: FSA, BPA: COMMERZE BANK 22,500,000 22,500,000
CALIFORNIA POLLUTION CONTROL:
6.34%, 6/1/14, LOC: COMERICA BANK 2,960,000 2,960,000
6.34%, 7/1/06, LOC: WELLS FARGO BANK 1,700,000 1,700,000
CALIFORNIA STATEWIDE COMMUNITY DEVELOPMENT, 6.15%, 7/1/27, LOC: HELLER
FINANCIAL,
CONFIRMING LOC: COMMERZE BANK 525,000 525,000
CAPITAL ONE FUNDING:
6.20%, 10/1/14, LOC: BANK ONE OHIO 12,992,000 12,992,000
6.20%, 9/1/16, LOC: BANK ONE OHIO 726,000 726,000
CAPREIT CARMEL FINANCIAL, 6.383%, 2/1/01, LOC: CREDIT SUISSE
10,500,000 10,500,000
CHICAGO ILLINOIS, 6.18%, 1/1/19, INSUR: FGIC, BPA: LASALLE BANK
7,220,000 7,220,000
CLARK COUNTY NEVADA IDA, 6.15%, 12/1/38, INSUR: AMBAC, BPA: BANK ONE OHIO
10,440,000 10,440,000
COLORADO HEALTH FACILITIES AUTHORITY REVENUE:
6.25%, 2/1/13, LOC: KREDIETBANK 3,490,000 3,490,000
6.70%, 4/1/20, LOC: KREDIETBANK 11,000,000 11,000,000
6.25%, 2/1/25, LOC: KREDIETBANK 10,225,000 10,225,000
COLUMBUS GEORGIA IDA REVENUE, 6.20%, 12/1/19,
LOC: BANK OF NOVA SCOTIA 16,200,000 16,200,000
COMMUNITY HEALTH SYSTEMS, 6.20%, 10/1/03, FIRST UNION BANK, NC
10,000,000 10,000,000
FAIRVIEW HOSPITAL & HEALTHCARE SERVICES, 6.25%, 11/1/15, INSUR: MBIA,
BPA: US BANK - NATIONAL ASSOCIATION 5,300,000 5,300,000
FLORIDA HOUSING FINANCE AGENCY, 7.00%, 7/1/23, LOC: HELLER FINANCIAL,
CONFIRMING LOC: COMMERZE BANK 750,000 750,000
FOUR FISHERS, 6.34%, 4/1/24, LOC: LASALLE BANK 6,595,000 6,595,000
GLACIER 600 REVENUE BOND, 6.20%, 11/1/16, LOC: US BANK - NATIONAL ASSOCIATION
4,490,000 4,490,000
HEALTH MIDWEST VENTURES GROUP, 6.15%, 8/1/19, LOC: BANK OF AMERICA
1,100,000 1,100,000
HEALTHRACK SPORTS AND WELLNESS, 6.20%, 2/15/27, LOC: AMERICAN NATIONAL BANK
AND TRUST 5,040,000 5,040,000
ILLINOIS HOUSING DEVELOPMENT AUTHORITY:
6.019%, 12/1/21, INSUR: AMBAC, TOA: CITIBANK 3,905,000 3,905,000
5.969%, 6/1/22, INSUR: AMBAC, TOA: CITIBANK 1,590,000 1,590,000
<PAGE>
PRINCIPAL
TAXABLE VARIABLE RATE DEMAND NOTES - CONT'D AMOUNT VALUE
INDIANA STATE DEVELOPMENT FINANCE AUTHORITY, 7.50%, 9/1/16, LOC: NATIONAL CITY
BANK $29,800,000 $29,800,000
KIT CARSON COUNTY, COLORADO, 5.15%, 6/1/27, LOC: NORWEST BANK
2,000,000 2,000,000
LA MIRADA, CALIFORNIA IDA, 5.43%, 12/1/26, LOC: BANK ONE OHIO
3,250,000 3,250,000
LILIHA PARTNERS HAWAII, 6.20%, 8/1/24, LOC: FIRST HAWAIIAN BANK,
CONFIRMING LOC: FIRST NATIONAL BANK CHICAGO 3,500,000 3,500,000
MARICOPA COUNTY ARIZONA IDA, 6.15%, 2/1/29,
LOC: BANQUE NATIONAL DE PARIS 1,855,000 1,855,000
MERITER HOSPITAL, 6.20%, 12/1/16, LOC: FIRSTAR BANK 5,200,000 5,200,000
MERITER MANAGEMENT SERVICES, 6.20%, 12/1/16, LOC: FIRSTAR BANK
4,555,000 4,555,000
MISSISSIPPI BUSINESS FINANCE AUTHORITY:
6.35%, 11/1/06, LOC: MARSHALL & ILSLEY BANK 4,750,000 4,750,000
6.30%, 12/1/13, LOC: FNB BOSTON 2,500,000 2,500,000
6.20%, 2/1/19, GA: SARA LEE 2,000,000 2,000,000
MONTGOMERY COUNTY NEW YORK, 6.30%, 5/1/25, LOC: FHLB NEW YORK
3,610,000 3,610,000
MONTGOMERY SURGICAL CENTER, 6.25%, 3/1/24, CONFIRMING LOC: SUNTRUST BANK
1,870,000 1,870,000
NEW HAMPSHIRE BUSINESS FINANCIAL AUTHORITY, 6.10%, 11/1/17, GA: STATE OF NEW
HAMPSHIRE 5,000,000 5,000,000
NEW JERSEY SPORTS AND EXPO AUTHORITY, 6.019%, 1/1/17, INSUR: MBIA, TOA:
CITIBANK 1,000,000 1,000,000
NORTH GREENBUSH NEW YORK IDA, 6.40%, 11/1/08, LOC: ABN AMRO BANK
4,085,000 4,085,000
OHIO STATE, 5.969%, 10/1/21, TOA: CITIBANK 4,500,000 4,500,000
PASADENA CALIFORNIA COPS,
6.15%, 11/1/12, LOC: CALSTERNS 3,000,000 3,000,000
6.15%, 11/1/12, LOC: CANADIAN IMPERIAL 3,000,000 3,000,000
PENNSYLVANIA ECONOMIC DEVELOPMENT FINANCING AUTHORITY, 6.40%, 4/5/00,
IA: BAYEREISCHE LANDESBANK 10,000,000 10,000,000
PHYSICIANS PLUS MEDICAL GROUP, 6.30%, 8/1/16, LOC: LASALLE BANK
12,100,000 12,100,000
PLEASANT HILL CALIFORNIA REDEVELOPMENT AGENCY, 6.20%, 8/1/26, LOC: HELLER
FINANCIAL,
CONFIRMING LOC: COMMERZE BANK 180,000 180,000
POINTE CHASE APARTMENTS MULITFAMILY, 6.20%, 12/1/29, LOC: COLUMBUS BANK & TRUST
8,175,000 8,175,000
POST APARTMENT HOMES LP, 6.13%, 7/15/29, LOC: FNMA 24,000,000 24,000,000
ROMAN CATHOLIC DIOCESE, 6.18%, 4/1/15, LOC: BANK OF AMERICA
6,300,000 6,300,000
ROOSEVELT PAPER COMPANY, 6.24%, 6/1/12, LOC: FIRST UNION, NC
6,600,000 6,600,000
SAN JOAQUIN MARINERS ASSOCIATION, 6.25%, 7/1/29, LOC: CREDIT SUISSE
1,900,000 1,900,000
SAN JOSE FINANCING AUTHORITY REVENUE, 6.15%, 12/1/25, INSUR: HELLER FINANCIAL,
CONFIRMING LOC: COMMERZE BANK 510,000 510,000
SAN LEANDRO CALIFORNIA MULTIFAMILY HOUSING, 6.15%, 10/1/27, LOC: HELLER
FINANCIAL,
CONFIRMING LOC: COMMERZE BANK 2,255,000 2,255,000
SAULT SAINT MARIE TRIBE BUILDING, 6.471%, 6/1/03, LOC: FIRST AMERICAN BANK
3,795,000 3,795,000
SOUTH CENTRAL COMMUNICATIONS CORPORATION, 6.15%, 6/1/13, LOC: CITIZENS
NATIONAL BANK,
CONFIRMING LOC: SUNTRUST BANK 9,270,000 9,270,000
ST. JOSEPHS COUNTY ECONOMIC DEVELOPMENT, 6.33%, 6/1/27, LOC: FHLB INDIANAPOLIS
865,000 865,000
STOW GLEN, 6.23%, 11/1/19, LOC: FIRSTSTAR BANK 10,575,000 10,575,000
SUFFOLK COUNTY NEW YORK IDA, 6.13%, 12/15/07, LOC: CHASE MANHATTAN
3,420,000 3,420,000
SUSSEX COUNTY DELAWARE, 5.78%, 11/1/27, LOC: WILMINGTON TRUST CO.
3,000,000 3,000,000
TENNESSEE STATE, 6.25%, 7/2/01, BPA: TENNESSEE CONSOLIDATED RETIREMENT SYSTEM
5,400,000 5,400,000
TEXAS STATE, 6.949%, 12/1/27, TOA: CITIBANK 10,000,000 10,000,000
THAYER, 6.20%, 7/1/20, LOC: COLUMBUS BANK & TRUST 7,100,000 7,100,000
VILLAGE OF SCHAUMBERG ILLINOIS, 6.25%, 12/1/13, BPA: FIRST NATIONAL BANK
CHICAGO 2,700,000 2,700,000
VIRGINIA STATE HOUSING DEVELOPMENT AUTHORITY:
6.019%, 11/1/11, BPA: CITIBANK 2,900,000 2,900,000
6.20%, 1/1/47 4,000,000 4,000,000
6.20%, 1/1/47, GA: VIRGINIA HOUSING DEVELOPMENT AUTHORITY
4,040,000 4,040,000
<PAGE>
PRINCIPAL
TAXABLE VARIABLE RATE DEMAND NOTES - CONT'D AMOUNT VALUE
WASHINGTON STATE HOUSING FINANCE COMMISSION, 6.15%:
2/1/28, LOC: US BANK - NATIONAL ASSOCIATION $2,950,000 $2,950,000
7/1/29, LOC: BANK ONE ARIZONA 2,680,000 2,680,000
7/15/32, LOC: FNMA 2,200,000 2,200,000
WAUKESHA HEALTH SYSTEMS, 6.15%, 8/15/26, LOC: BANK OF AMERICA
600,000 600,000
WENATCHEE VALLEY CLINIC, 6.20%, 11/23/24, LOC: US BANK - NATIONAL ASSOCIATION
9,745,000 9,745,000
TOTAL TAXABLE VARIABLE RATE DEMAND NOTES (COST $484,193,000) 484,193,000
CORPORATE OBLIGATIONS - 10.4%
BAYEREISCHE LANDESBANK NEW YORK, 5.875%, 4/7/00 9,500,000 9,499,987
BEAR STEARNS CO., INC.:
6.50%, 7/5/00 13,000,000 13,026,166
6.75%, 8/15/00 10,000,000 10,024,220
FORD MOTOR CREDIT, 7.30%, 5/9/00 5,000,000 5,008,014
MERRILL LYNCH:
6.70%, 8/1/00 11,000,000 11,024,361
6.74%, 2/7/01 10,000,000 10,000,000
SARA LEE CORPORATION:
5.70%, 7/14/00 1,000,000 1,000,011
5.75%, 7/14/00 4,000,000 4,000,588
VIRGINIA ELECTRIC AND POWER, 5.875%, 4/1/00 6,000,000 6,000,000
TOTAL CORPORATE OBLIGATIONS (COST $69,583,347) 69,583,347
COMMERCIAL PAPER - 9.9%
BALTIMORE GAS AND ELECTRIC COMPANY, 5.50%, 7/15/00 2,470,000 2,468,283
DUKE UNIVERSITY, 6.10%, 7/5/00 6,000,000 5,903,417
JEFFERSON PILOT CORPORATION, 6.12%, 2/2/00 10,000,000 9,731,400
LOWER COLORADO RIVER AUTHORITY, 6.22%, 4/5/00 8,000,000 8,000,000
REGIONS BANK, NEW YORK. 6.70%, 2/2/01 10,000,000 9,996,010
UBS FINANCE DELAWARE, INC., 6.28%, 4/3/00 30,000,000 29,989,533
TOTAL COMMERCIAL PAPER (COST $66,088,643) 66,088,643
CERTIFICATES OF DEPOSIT - 3.3%
BANK OF MONTREAL, CHICAGO, 5.09%, 4/17/00 5,000,000 4,999,936
CANADIAN IMPERIAL, 6.67%, 2/12/01 7,000,000 6,997,116
DEUTSCHE BANK, NEW YORK. 5.97%, 9/5/00 10,000,000 9,998,357
TOTAL CERTIFICATES OF DEPOSIT (COST $21,995,409) 21,995,409
U.S. GOVERNMENT AGENCY OBLIGATIONS - 1.5%
FEDERAL NATIONAL MORTGAGE ASSOCIATION, 6.47%, 2/16/01
10,000,000 9,997,456
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (COST $9,997,456) 9,997,456
<PAGE>
PRINCIPAL
REPURCHASE AGREEMENTS - 1.3% AMOUNT VALUE
STATE STREET BANK, 6.15%, DATED 3/31/00, DUE 4/3/00
(COLLATERAL: $8,962,879, FHLMC, 6.17%, 6/8/00) $8,800,000 $8,800,000
TOTAL REPURCHASE AGREEMENTS (COST $8,800,000) 8,800,000
TOTAL INVESTMENTS (COST $660,657,855) - 99.0% 660,657,855
OTHER ASSETS AND LIABILITIES, NET - 1.0% 6,426,547
NET ASSETS - 100% $667,084,402
NET ASSETS CONSIST OF:
PAID-IN CAPITAL APPLICABLE TO 667,076,535 SHARES OF BENEFICIAL INTEREST,
UNLIMITED NUMBER OF NO PAR SHARES AUTHORIZED $667,078,350
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) 11,876
ACCUMULATED NET REALIZED GAIN (LOSS) ON INVESTMENTS (5,824)
NET ASSETS $667,084,402
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
LP: LIMITED PARTNERSHIP
COPS: CERTIFICATES OF PARTICIPATION
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED MARCH 31, 2000
NET INVESTMENT INCOME
INVESTMENT INCOME:
INTEREST INCOME $18,900,895
EXPENSES:
INVESTMENT ADVISORY FEE 792,704
TRANSFER AGENCY FEES AND EXPENSES 7,242
TRUSTEES' FEES AND EXPENSES 32,367
ADMINISTRATIVE FEES 158,541
CUSTODIAN FEES 23,797
ACCOUNTING FEES 27,685
REGISTRATION FEES 17,818
REPORTS TO SHAREHOLDERS 17,277
PROFESSIONAL FEES 9,356
MISCELLANEOUS 38,738
TOTAL EXPENSES 1,125,525
REIMBURSEMENT FROM ADVISOR (287,830)
FEES PAID INDIRECTLY (44,991)
NET EXPENSES 792,704
NET INVESTMENT INCOME 18,108,191
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
NET REALIZED GAIN (LOSS) ON INVESTMENTS (5,824)
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $18,102,367
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS
ENDED YEAR ENDED
MARCH 31, SEPTEMBER 30,
INCREASE (DECREASE) IN NET ASSETS 2000 1999
OPERATIONS:
NET INVESTMENT INCOME $18,108,191 $29,948,477
NET REALIZED GAIN (LOSS) ON INVESTMENTS (5,824) 1,698
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 18,102,367 29,950,175
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME (18,106,132) (29,944,088)
TOTAL DISTRIBUTIONS (18,106,132) (29,944,088)
CAPITAL SHARE TRANSACTIONS IN DOLLARS AND SHARES:
SHARES SOLD 3,727,794,429 6,188,045,089
REINVESTMENT OF DISTRIBUTIONS 13,760,900 22,089,728
SHARES REDEEMED (3,669,291,560) (6,052,001,761)
TOTAL CAPITAL SHARE TRANSACTIONS 72,263,769 158,133,056
TOTAL INCREASE (DECREASE) IN NET ASSETS 72,260,004 158,139,143
NET ASSETS
BEGINNING OF PERIOD 594,824,398 436,685,255
END OF PERIOD (INCLUDING UNDISTRIBUTED NET INVESTMENT
INCOME OF $11,876 AND $9,817 RESPECTIVELY) $667,084,402 $594,824,398
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
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
.25% OF AVERAGE DAILY NET ASSETS. UNDER THE TERMS OF THE AGREEMENT, $103,207 WAS
PAYABLE AT PERIOD END.
THE ADVISOR VOLUNTARILY REIMBURSED THE FUND FOR EXPENSES OF $287,830.
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, $26,333 WAS PAYABLE AT PERIOD END.
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 $3,454 FOR THE PERIOD ENDED MARCH 31, 2000. UNDER THE TERMS OF THE AGREEMENT,
$516 WAS PAYABLE AT PERIOD 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 MARCH 31, 2000 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 THE
CALVERT SOCIAL INVESTMENT FUND MANAGED INDEX AND CVS AMERITAS INDEX 500
PORTFOLIOS) 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 MARCH 31, 2000.
FINANCIAL HIGHLIGHTS
PERIODS ENDED
MARCH 31, SEPTEMBER 30, SEPTEMBER 30,
2000 1999 1998
NET ASSET VALUE, BEGINNING $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .029 .051 .056
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.029) (.051) (.056)
NET ASSET VALUE, ENDING $1.00 $1.00 $1.00
TOTAL RETURN 2.89% 5.18% 5.74%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME 5.71% (A) 5.05% 5.59%
TOTAL EXPENSES .35% (A) .36% .35%
EXPENSES BEFORE OFFSETS .26% (A) .22% .14%
NET EXPENSES .25% (A) .21% .13%
NET ASSETS, ENDING (IN THOUSANDS) $667,084 $594,824 $436,685
YEARS ENDED
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 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 INCOME 5.55% 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
(A) ANNUALIZED
<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.
