<PAGE>
Acacia Capital
Corporation
Calvert
Responsibly
Invested
Portfolios
Annual
Report
December 31, 1995
<PAGE>
Annual Report-December 31, 1995
==================
CALVERT RESPONSIBLY INVESTED
MONEY MARKET PORTFOLIO
Managed by Calvert Asset Management Company, Inc.
Dear Investor:
The 12-month period ended December 31, 1995 proved to be an excellent one for
investors as a cooling economy, tame inflation and falling interest rates worked
together to push stock and bond prices higher. Gross Domestic Product (GDP)
slowed to below 2% annualized, based on estimates of fourth quarter data. To
stimulate the economy, the Federal Reserve lowered interest rates twice in the
second half of 1995, reducing its target for the federal funds rate to 5.5% by
year end.
Performance and Strategy
The Portfolio's dividend yield moved higher during the course of the year
due to higher rates available in the latter half of 1994 and the first half of
1995. The annualized compound dividend yield for the period was 5.37%, up from
3.96% one year ago. Currently, the Portfolio's average maturity is 29 days.
Outlook
Our forecast for the year calls for continued slow economic growth, low
inflation and low interest rates. With a sluggish economy at hand, we would not
be surprised to see the Federal Reserve cut short-term rates another 50 basis
points, possibly as early as the first quarter.
We appreciate your investment in the CRI Money Market Portfolio.
Sincerely,
/s/ Clifton S. Sorrell
Clifton S. Sorrell
President
ANNUAL REPORT CALVERT RESPONSIBLY INVESTED MONEY MARKET PORTFOLIO - 1
<PAGE>
Report of Independent Accountants
==============
To the Board of Directors of Acacia Capital Corporation and Shareholders of the
Calvert Responsibly Invested Money Market Portfolio:
We have audited the accompanying statement of assets and liabilities of
Calvert Responsibly Invested Money Market Portfolio (one of the portfolios
comprising the Acacia Capital Corporation), including the portfolio of
investments, as of December 31, 1995, and the related statement of operations
for the year then ended, and statement of changes in net assets and financial
highlights for each of the two years then ended. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits. The financial highlights for each of
the preceding years were audited by other auditors whose report dated January
31, 1994 expressed an unqualified opinion thereon.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of investments owned as of
December 31, 1995, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Calvert Responsibly Invested Money Market Portfolio as of December 31, 1995, the
results of its operations for the year then ended, and the changes in its net
assets and financial highlights for each of the two years in the period then
ended, in conformity with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Baltimore, Maryland
January 26, 1996
2 - CALVERT RESPONSIBLY INVESTED MONEY MARKET PORTFOLIO ANNUAL REPORT
<PAGE>
Acacia Capital Corporation
Calvert Responsibly Invested
Money Market Portfolio
Portfolio of Investments
December 31, 1995
<TABLE>
<CAPTION>
Principal
Municipal Obligations (26.3%) Amount Value
=========================================================================================
<S> <C> <C>
Alabama State Industrial Development Authority VRDN, 6.00%,
5/1/10, LOC: First Alabama Bank*.................................$ 240,000 $ 240,000
Alabama State Industrial Development Authority VRDN, 6.05%,
12/1/19, LOC: Chemical Bank*.................................... 240,000 240,000
Detroit, Michigan VRDN, 6.15%, 5/1/06, LOC: Sumitomo Bank Ltd.*... 240,000 240,000
Broome County, New York Industrial Development Authority VRDN,
5.85%, 6/1/00, LOC: First Union Bank, NC*........................ 225,000 225,000
Mahoning County, Ohio VRDN, 6.24%, 11/1/98, LOC: PNC
Bank*............................................................ 150,000 150,000
Montgomery County, Kentucky Industrial Development Authority
VRDN, 6.05%, 8/1/15, LOC: Shawmut Bank*.......................... 250,000 250,000
----------
Total Municipal Obligations (Cost $1,345,000)................... 1,345,000
----------
U.S. Government Agencies and
Instrumentalities (72.5%)
=========================================================================================
Federal Farm Credit Bank, 5.63%, 1/19/96.......................... 150,000 149,578
Federal Farm Credit Bank, 5.56%, 2/5/96........................... 350,000 348,108
Federal Home Loan Bank, 5.67%, 1/17/96............................ 300,000 299,244
Federal Home Loan Bank, 5.63%, 1/24/96............................ 300,000 298,921
Federal Home Loan Bank, 5.60%, 1/29/96............................ 620,000 617,300
Federal Home Loan Bank, 5.54%, 2/21/96............................ 550,000 545,683
Federal Home Loan Mortgage, 5.50%, 1/4/96......................... 125,000 124,943
Federal National Mortgage Assn., 5.57%, 1/29/96................... 750,000 746,751
Federal National Mortgage Assn., 5.56%, 2/13/96................... 400,000 397,343
Federal National Mortgage Assn., 5.44%, 4/4/96.................... 195,000 192,230
----------
Total U.S. Government Agencies and Instrumentalities
(Cost $3,720,101)............................................... 3,720,101
----------
TOTAL INVESTMENTS (98.8%)
(Cost $5,065,101 +)......................................... $5,065,101
==========
</TABLE>
Notes to Portfolio of Investments:
*Optional tender features give these securities a shorter effective maturity
date.
+Cost of investments is substantially the same for federal income tax
purposes.
Percentages shown represent the percentage of investments to net assets.
Explanation of Guarantees:
LOC: Letter of Credit
Abbreviations:
VRDN: Variable Rate Demand Notes
ANNUAL REPORT CALVERT RESPONSIBLY INVESTED MONEY MARKET PORTFOLIO - 3
<PAGE>
Acacia Capital Corporation
Calvert Responsibly Invested
Money Market Portfolio
Statement of Assets and Liabilities
December 31, 1995
<TABLE>
<CAPTION>
Assets
====================================================================================
<S> <C>
Investments in securities, at value - see accompanying portfolio......... $5,065,101
Cash..................................................................... 61,927
Interest receivable...................................................... 5,947
Other assets............................................................. 107
----------
Total assets............................................................ 5,133,082
----------
Liabilities
====================================================================================
Payable to Calvert Asset Management Company, Inc......................... 2,258
Accrued expenses and other liabilities................................... 2,290
----------
Total liabilities....................................................... 4,548
----------
Net assets............................................................. $5,128,534
==========
Net Assets Consist of:
====================================================================================
Par value and paid-in capital applicable to 5,132,581 shares of common
stock outstanding; $1 par value, 14,000,000 shares authorized........... $5,128,005
Undistributed net investment income (loss)............................... 399
Accumulated net realized gains (losses).................................. 130
----------
Net Assets............................................................ $5,128,534
==========
Net Asset Value per Share.............................................. $1.00
==========
</TABLE>
See notes to financial statements.
4 - CALVERT RESPONSIBLY INVESTED MONEY MARKET PORTFOLIO ANNUAL REPORT
<PAGE>
Acacia Capital Corporation
Calvert Responsibly Invested
Money Market Portfolio
Statement of Operations
Year Ended December 31, 1995
=======
<TABLE>
<CAPTION>
Net Investment Income
- -------------------------------------------------------------------------------
<S> <C>
Investment Income
Interest income.................................................... $321,021
--------
Total investment income.......................................... 321,021
--------
Expenses
Investment advisory fee............................................ 27,591
Directors' fees and expenses....................................... 242
Custodian fees..................................................... 4,314
Reports to shareholders............................................ 3,408
Professional fees.................................................. 1,065
Miscellaneous...................................................... 67
--------
Total expenses................................................... 36,687
Fees paid indirectly............................................. (4,319)
--------
Net expenses................................................... 32,368
--------
Net Investment Income........................................ 288,653
--------
Realized Gain (Loss) on Investments
- -------------------------------------------------------------------------------
Net realized gain (loss) on investments.............................. 150
--------
Net Realized Gain (Loss)
On Investments................................................... 150
--------
Increase (Decrease) In Net Assets
Resulting From Operations........................................ $288,803
========
</TABLE>
See notes to financial statements.
ANNUAL REPORT CALVERT RESPONSIBLY INVESTED MONEY MARKET PORTFOLIO - 5
<PAGE>
Acacia Capital Corporation
Calvert Responsibly Invested
Money Market Portfolio
Statement of Changes in Net Assets
Years Ended December 31, 1995 and 1994
==========
<TABLE>
<CAPTION>
Increase (Decrease) in Net Assets 1995 1994
- --------------------------------------------------------------------------------
<S> <C> <C>
Operations
Net investment income........................... $ 288,653 $ 212,908
Net realized gain (loss) on investments......... 150 (20)
------------ ------------
Increase (Decrease)
In Net Assets Resulting
From Operations............................... 288,803 212,888
------------ ------------
Distributions to shareholders from:
Net investment income........................... (288,254) (216,901)
------------ ------------
Total distributions........................... (288,254) (216,901)
------------ ------------
Capital share transactions
Shares sold..................................... 10,858,696 23,556,988
Reinvestment of distributions................... 266,798 216,901
Shares redeemed................................. (12,476,524) (21,322,381)
------------ ------------
Total capital share transactions.............. (1,351,030) 2,451,508
------------ ------------
Total Increase (Decrease)
In Net Assets..................................... (1,350,481) 2,447,495
Net Assets
- --------------------------------------------------------------------------------
Beginning of year............................... 6,479,015 4,031,520
------------ ------------
End of year (including undistributed net invest-
ment income of $399 and $0, respectively.).... $ 5,128,534 $ 6,479,015
============ ============
Capital Share Activity
- --------------------------------------------------------------------------------
Shares sold..................................... 10,858,696 23,556,988
Reinvestment of distributions................... 266,798 216,901
Shares redeemed................................. (12,476,524) (21,322,381)
------------ ------------
Total capital share activity.................. (1,351,030) 2,451,508
============ ============
</TABLE>
See notes to financial statements.
6 - CALVERT RESPONSIBLY INVESTED MONEY MARKET PORTFOLIO ANNUAL REPORT
<PAGE>
Notes to Financial Statements
Note A-Significant Accounting Policies
General: The Money Market Portfolio (the "Portfolio"), a series of Acacia
Capital Corporation's Calvert Responsibly Invested (CRI) Portfolios, is
registered under the Investment Company Act of 1940 as a diversified, open-end
management investment company. The operations of each series are accounted for
separately. The shares of the Portfolio are sold to affiliated and unaffiliated
insurance companies for allocation to certain of their variable separate
accounts.
Security Valuation: All securities are valued at amortized cost, which
approximates market.
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 Portfolio on ex-dividend date. Dividends from net investment income are paid
monthly. Distributions from net realized capital gains, if any, are paid at
least annually. Distributions are determined in accordance with income tax
regulations which may differ from generally accepted accounting principles,
accordingly, periodic reclassifications are made within the Portfolio's capital
accounts to reflect income and gains available for distribution under income tax
regulations.
Expense Offset Arrangements: The Portfolio has an arrangement with its
custodian bank whereby the custodian's fees are paid indirectly by credits
earned on the Portfolio'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 Portfolio intends to continue to qualify as a regulated investment
company under the Internal Revenue Code and to distribute substantially all of
its earnings.
ANNUAL REPORT CALVERT RESPONSIBLY INVESTED MONEY MARKET PORTFOLIO - 7
<PAGE>
Note B-Related Party Transactions
Calvert Asset Management Company, Inc. (the "Advisor") is wholly-owned by
Calvert Group, Ltd. ("Calvert"), which is indirectly wholly-owned by Acacia
Mutual Life Insurance Company. The Advisor provides investment advisory services
and pays the salaries and fees of officers and affiliated Directors of the
Portfolio. For its services, the Advisor receives a monthly fee based on an
annual rate of .50% of the Portfolio'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 Portfolio.
Each Director who is not affiliated with the Advisor receives a fee of $500 for
each Board meeting attended plus an annual fee of $2,000 for Directors not
serving on other Calvert Fund Boards. Director's fees are allocated to each of
the portfolios served.
NOTE C - Investment Activity
The cost of investments owned at December 31, 1995 was substantially the same
for federal income tax and financial reporting purposes.
8 - CALVERT RESPONSIBLY INVESTED MONEY MARKET PORTFOLIO ANNUAL REPORT
<PAGE>
<TABLE>
<CAPTION>
Acacia Capital Corporation
Calvert Responsibly Invested
Money Market Portfolio
Financial Highlights
=========
From Inception
June 30, 1992
Year Ended Year Ended Year Ended Through
December 31, December 31, December 31, December 31,
1995 1994 1993 1992
=====================================================================================================
<S> <C> <C> <C> <C>
Net asset value, beginning............ $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== =========== =========== ===========
Income from investment operations
Net investment income............... .055 .039 .031 .009
Net realized gain (loss)............ ---- ---- ---- ----
----------- ----------- ----------- -----------
Total from investment operations.. .055 .039 .031 .009
----------- ----------- ----------- -----------
Distributions from
Net investment income............... (.055) (.039) (.031) (.009)
----------- ----------- ----------- -----------
Total distributions............... (.055) (.039) (.031) (.009)
----------- ----------- ----------- -----------
Total increase (decrease)
in net asset value.................. ---- ---- ---- ----
----------- ----------- ----------- -----------
Net asset value, ending............... $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== =========== =========== ===========
Total return*......................... 5.37% 3.96% 3.09% 2.11%(a)
=========== =========== =========== ===========
Ratios to average net assets:
Net investment income............... 5.23% 3.91% 3.07% 3.02%(a)
=========== =========== =========== ===========
Total expenses+..................... .66% ---- ---- ----
=========== =========== =========== ===========
Net expenses........................ .59% .45% ---- ----
=========== =========== =========== ===========
Expenses reimbursed................. ---- .36% .11% .85%(a)
=========== =========== =========== ===========
Net assets, ending (in thousands)..... $5,129 $6,479 $4,032 $1,795
=========== =========== =========== ===========
Number of shares outstanding,
ending (in thousands)............... 5,133 6,484 4,032 1,795
=========== =========== =========== ===========
</TABLE>
(a) Annualized
* Total return is not annualized for periods of less than one year.
+ Effective December 31, 1995, this ratio reflects total expenses before
reduction for fees paid indirectly; such reductions are included in the ratio
of net expenses.
ANNUAL REPORT CALVERT RESPONSIBLY INVESTED MONEY MARKET PORTFOLIO - 9
<PAGE>
Annual Report--December 31, 1995
======
CALVERT RESPONSIBLY INVESTED
STRATEGIC GROWTH PORTFOLIO
Managed by Portfolio Advisory Services, Inc.
Dear Investor:
Portfolio Advisory Services, Inc., the subadvisor to the Calvert Responsibly
Invested Strategic Growth Portfolio, has a distinct management style founded on
strict investment disciplines. The disciplines include:
. In-depth stock selection;
. Strict fundamental and technical benchmarks for selling stocks;
. Ongoing reference to the Five Market Principles, an econometric timing tool
used to assess the level of intermediate and long-term risk associated with
investing in the stock market.
Market Summary
Nineteen ninety-five marked the fifth year of the stock market rally, making
it the longest period in history that blue-chip indices have advanced without at
least a 10% correction. The rally has been driven primarily by speculation,
aggressive investing by institutional investors and a high level of investor
optimism.
Performance and Strategy
With the five Market Principles negative on balance and pointing to a High
Risk level, the Portfolio's exposure was limited. During the first three
quarters of 1995, the manager's strategy focused on preservation of capital and,
accordingly, the Portfolio's cash levels were above average.
Calvert Responsibly Invested
Strategic Growth Portfolio
[GRAPH APPEARS HERE]
- ------------------------------------------------------------------------------
Comparison of change in value of a
hypothetical $10,000 investment.
CRI Russell S&P
Strategic Growth 2000 500(R)
-------------------------------------------------
3/95 $10,000 $10,000 $10,000
6/95 9,990 10,938 10,955
9/95 10,190 12,019 11,826
12/95 10,954 12,279 12,538
Average Annual Total Return
(period ending 12/31/95)
6 Months 9.65% Life of Fund 9.65% (3/95)
- ------------------------------------------------------------------------------
Performance information is for the Portfolio only and does not
reflect charges and expenses of the variable annuity. Past
performance does not indicate future results.
- ------------------------------------------------------------------------------
10 - CALVERT RESPONSIBLY INVESTED STRATEGIC GROWTH PORTFOLIO ANNUAL REPORT
<PAGE>
From its inception on March 1, 1995 through December 31, 1995, the Portfolio
returned 9.65% compared to 23.20% for the Russell 2000 and 29.12% for the S&P
500(R) for the same period.
Outlook
After market indicators showed improvement in the fourth quarter, we increased
the Portfolio's long positions, with favorable results. The manager used the
market's seasonal strength period - the week of Thanksgiving through the first
week of January - to add stock holdings to the Portfolio.
The Fund's current strategy is to maintain a cautiously invested position. The
Five Market Principles indicate the market's risk level at this point in time is
moderately High Risk. If market indicators deteriorate again or if momentum
fails, the manager would return to a more defensive position.
As the bull market enters its sixth consecutive year without a correction of
10% or more, we believe the current market is overvalued and vulnerable to a
sell-off. Our current strategy is to maintain a cautiously invested position
until confirmation of a market top. We are looking for a break in the upward
trend of the NYSE Advance/Decline Line and further deterioration of market
indicators before increasing the Portfolio's defensive position.
We appreciate your investment in the CRI Strategic Growth Portfolio.
Sincerely,
/s/ Clifton S. Sorrell
Clifton S. Sorrell
President
ANNUAL REPORT CALVERT RESPONSIBLY INVESTED STRATEGIC GROWTH PORTFOLIO - 11
<PAGE>
Report of Independent Accountants
========
To the Board of Directors of Acacia Capital Corporation, and Shareholders of the
Calvert Responsibly Invested Strategic Growth Portfolio:
We have audited the accompanying statement of assets and liabilities of
Calvert Responsibly Invested Strategic Growth Portfolio (one of the portfolios
comprising Acacia Capital Corporation), including the portfolio of investments,
as of December 31, 1995, and the related statement of operations, statement of
changes in net assets and financial highlights for the period March 1, 1995
(commencement of operations) through December 31, 1995. These financial
statements and financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of investments owned as of
December 31, 1995, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Calvert Responsibly Invested Strategic Growth Portfolio as of December 31, 1995,
and the results of its operations, the changes in its net assets, and the
financial highlights for the period referred to above, in conformity with
generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Baltimore, Maryland
January 26, 1996
12 - CALVERT RESPONSIBLY INVESTED STRATEGIC GROWTH PORTFOLIO ANNUAL REPORT
<PAGE>
Acacia Capital Corporation
Calvert Responsibly Invested
Strategic Growth Portfolio
Portfolio of Investments
December 31, 1995
========
<TABLE>
<CAPTION>
Equity Securities (57.1%) Shares Value
- --------------------------------------------------------------------------------
<S> <C> <C>
Business Equipment and Supplies (2.4%)
Staples, Inc. *............................................. 1,200 $ 29,250
--------
29,250
--------
Computer - Graphics (1.5%)
Trident Microsystems, Inc. *................................ 800 18,800
--------
18,800
--------
Computer - Local Networks (8.4%)
Alantec Corp. *............................................. 400 23,300
Ascend Communications, Inc. *............................... 500 40,563
Cisco Systems, Inc. *....................................... 200 14,925
Madge N.V. *................................................ 500 22,375
--------
101,163
--------
Computer - Memory Devices (3.1%)
C Cube Microsystems, Inc. *................................. 600 37,500
--------
37,500
--------
Computer - Systems (5.7%)
Cognex Corp. *.............................................. 700 24,325
Discreet Logic, Inc. *...................................... 900 22,500
HCIA, Inc. *................................................ 300 14,025
Oracle Systems Corp. *...................................... 200 8,475
--------
69,325
--------
Computer - Peripheral Equipment (0.7%)
U.S. Robotics Corp........................................... 100 8,775
--------
8,775
--------
Computer - Software (19.8%)
Applix, Inc. *.............................................. 2,000 54,500
Astea International, Inc. *................................. 1,000 22,875
Atria Software, Inc. *...................................... 200 7,825
CBT Group Pub Ltd. *........................................ 200 10,600
Macromedia, Inc. *.......................................... 600 31,350
Mcafee Associates, Inc. *................................... 1,375 60,328
Microsoft Corp. *........................................... 200 17,550
Novadigm, Inc. *............................................ 500 14,188
Peoplesoft, Inc. *.......................................... 400 17,200
Quarterdeck Corp. *......................................... 100 2,750
--------
239,166
--------
</TABLE>
See notes to portfolio of investments.
ANNUAL REPORT CALVERT RESPONSIBLY INVESTED STRATEGIC GROWTH PORTFOLIO - 13
<PAGE>
Acacia Capital Corporation
Calvert Responsibly Invested
Strategic Growth Portfolio
Portfolio of Investments (Continued)
December 31, 1995
========
<TABLE>
<CAPTION>
Equity Securities (Cont'd) Shares Value
- --------------------------------------------------------------------------------
<S> <C> <C>
Electronics - Laser Sys/Components (1.0%)
Cyberoptics Corp. *.......................................... 300 $ 11,925
--------
11,925
--------
Electronics - Semiconductors (4.8%)
Cypress Semiconductor Corp. *............................... 200 2,550
ESS Technology, Inc. *...................................... 400 9,200
Flextronics International *................................. 500 15,000
Zoran Corp. *............................................... 1,500 31,125
--------
57,875
--------
Medical (0.7%)
Compdent Corp. *............................................. 200 8,300
--------
8,300
--------
Pharmaceutical (2.0%)
Watson Pharmaceuticals, Inc. *.............................. 500 24,500
--------
24,500
--------
Telecommunications (7.0%)
Cascade Communications Corp. *.............................. 200 17,050
General Instrument Corp. *.................................. 800 18,700
Glenayre Technologies, Inc. *............................... 400 24,900
Pairgain Technologies, Inc. *............................... 200 10,950
Qualcomm, Inc. *............................................ 300 12,900
--------
84,500
--------
Total Equity Securities (Cost $592,902)................... 691,079
--------
Metal (3.2%) Ounces
- --------------------------------------------------------------------------------
Gold Bars *................................................... 99 38,408
--------
Total Metal (Cost $38,944).................................. 38,408
--------
</TABLE>
See notes to portfolio of investments.
14 - CALVERT RESPONSIBLY INVESTED STRATEGIC GROWTH PORTFOLIO ANNUAL REPORT
<PAGE>
Acacia Capital Corporation
Calvert Responsibly Invested
Strategic Growth Portfolio
Portfolio of Investments (Continued)
December 31, 1995
==============
Principal
U.S. Treasury (29.4%) Amount Value
==============================================================
U. S. Treasury Bills, 5.31%, 3/7/96.... $250,000 $ 247,566
U. S. Treasury Bills, 5.17%, 5/9/96.... 100,000 98,147
U. S. Treasury Bills, 5.305%, 5/9/96... 10,000 9,810
----------
Total U.S. Treasury (Cost $355,524).. 355,523
----------
TOTAL INVESTMENTS (89.7%)
(Cost $987,370 +).................... $1,085,010
==========
Schedule of Investments Sold Short
Equity Securities....................... Shares
==============================================================
Avid Technology, Inc................... 200 $ 3,800
Cypress Semiconductor Corp............. 200 2,550
General Instrument Corp................ 800 18,700
Qualcomm, Inc.......................... 300 12,900
----------
TOTAL EQUITY SECURITIES SOLD SHORT
(Proceeds $45,917)................... $ 37,950
==========
Schedule of Options Written
Options Written
==============================================================
Microsoft Corp., 2 Call Contracts
Expiration 1/18/96, Strike Price 100.. $ 50
----------
TOTAL OPTIONS WRITTEN
(Premium $1,369)..................... $ 50
==========
Notes to Portfolio of Investments:
* Non-income producing.
+ Cost of investments is substantially the same for federal income tax purposes.
Percentages shown represent percentage of investments to net assets.
ANNUAL REPORT CALVERT RESPONSIBLY INVESTED STRATEGIC GROWTH PORTFOLIO - 15
<PAGE>
Acacia Capital Corporation
Calvert Responsibly Invested
Strategic Growth Portfolio
Statement of Assets and Liabilities
December 31, 1995
===============
<TABLE>
<CAPTION>
Assets
==================================================================================
<S> <C>
Investments in securities, at value - see accompanying portfolio....... $1,085,010
Cash................................................................... 125,034
Receivable for securities sold......................................... 10,771
Dividends receivable................................................... 111
Deposits with brokers.................................................. 40,469
Other assets........................................................... 601
----------
Total assets.......................................................... 1,261,996
----------
Liabilities
==================================================================================
Payable for securities purchased....................................... 12,250
Securities sold short, at value (proceeds $45,917)..................... 37,950
Options written, at value (premiums $1,369)............................ 50
Payable to Calvert Asset Management Company, Inc....................... 1,496
Accrued expenses and other liabilities................................. 810
----------
Total liabilities..................................................... 52,556
----------
Net assets........................................................... $1,209,440
==========
Net Assets Consist of:
==================================================================================
Par value and paid-in capital applicable to 110,586 shares of common
stock outstanding; $1 par value, 5,000,000 shares authorized.......... $1,113,146
Undistributed net investment income (loss)............................. 535
Accumulated net realized gains (losses)................................ (11,166)
Net unrealized appreciation (depreciation) on investments.............. 106,925
----------
Net Assets........................................................... $1,209,440
==========
Net Asset Value per Share............................................ $ 10.94
==========
</TABLE>
See notes to financial statements.
16 - CALVERT RESPONSIBLY INVESTED STRATEGIC GROWTH PORTFOLIO ANNUAL REPORT
<PAGE>
Acacia Capital Corporation
Calvert Responsibly Invested
Strategic Growth Portfolio
Statement of Operations
From Inception (March 1, 1995)
Through December 31, 1995
====================
<TABLE>
<CAPTION>
Net Investment Income
============================================================================
<S> <C>
Investment Income
Interest income................................................... $ 15,253
Dividend income................................................... 345
--------
Total investment income.......................................... 15,598
--------
Expenses
Investment advisory fee........................................... 10,886
Directors' fees and expenses...................................... 44
Administrative fees............................................... 1,505
Custodian fees.................................................... 3,953
Registration fees................................................. 418
Reports to shareholders........................................... 789
Professional fees................................................. 213
Miscellaneous..................................................... 11
Reimbursement from Advisor........................................ (1,505)
--------
Total expenses................................................... 16,314
Fees paid indirectly............................................. (3,953)
--------
Net expenses.................................................... 12,361
--------
Net Investment Income......................................... 3,237
--------
Realized and Unrealized Gain (Loss)
on Investments
============================================================================
Net realized gain (loss) on:
Securities........................................................ (7,468)
Options written................................................... 1,538
Securities sold short............................................. (5,236)
--------
(11,166)
--------
Change in unrealized appreciation or depreciation of investments... 106,925
--------
Net Realized and Unrealized Gain (Loss)
On Investments................................................... 95,759
--------
Increase (Decrease) In Net Assets
Resulting From Operations........................................ $ 98,996
========
</TABLE>
See notes to financial statements.
ANNUAL REPORT CALVERT RESPONSIBLY INVESTED STRATEGIC GROWTH PORTFOLIO - 17
<PAGE>
Acacia Capital Corporation
Calvert Responsibly Invested
Strategic Growth Portfolio
Statement of Changes in Net Assets
From Inception (March 1, 1995) Through
December 31, 1995
=============
<TABLE>
<CAPTION>
Increase (Decrease) in Net Assets 1995
====================================================================
<S>..................................................... <C>
Operations
Net investment income.................................. $ 3,237
Net realized gain (loss) on investments................ (11,166)
Change in unrealized appreciation or depreciation...... 106,925
----------
Increase (Decrease) In Net Assets
Resulting From Operations............................ 98,996
----------
Distributions to shareholders from:
Net investment income.................................. (2,702)
----------
Total distributions................................... (2,702)
----------
Capital share transactions
Shares sold............................................ 1,272,662
Reinvestment of distributions.......................... 2,702
Shares redeemed........................................ (162,218)
----------
Total capital share transactions...................... 1,113,146
----------
Total Increase (Decrease)
In Net Assets........................................... 1,209,440
Net Assets
====================================================================
Beginning of period.................................... ----
----------
End of period (including undistributed net investment
income of $535)....................................... $1,209,440
==========
Capital Share Activity
====================================================================
Shares sold............................................ 126,452
Reinvestment of distributions.......................... 247
Shares redeemed........................................ (16,113)
----------
Total capital share activity.......................... 110,586
==========
</TABLE>
See notes to financial statements.
18 - CALVERT RESPONSIBLY INVESTED STRATEGIC GROWTH PORTFOLIO ANNUAL REPORT
<PAGE>
Notes to Financial Statements
Note A-Significant Accounting Policies
General: The Strategic Growth Portfolio (the "Portfolio"), a series of Acacia
Capital Corporation's Calvert Responsibly Invested (CRI) Portfolios, is
registered under the Investment Company Act of 1940 as a non-diversified, open-
end management investment company. The operations of each series are accounted
for separately. The shares of the Portfolio, which were first offered on March
1, 1995, are sold to affiliated and unaffiliated insurance companies for
allocation to certain of their variable separate accounts.
Security Valuation: Securities listed or traded on a national securities
exchange are valued at the last reported sales price or spot market price.
Unlisted securities and listed securities for which the last sale price is not
available are valued at the most recent bid price or based on a yield equivalent
obtained from the securities' market maker. Short-term securities maturing
within 60 days are valued at amortized cost which approximates market. The
Portfolio may invest in securities whose resale is subject to restrictions.
Restricted securities and other securities and assets for which market
quotations are not available or deemed inappropriate are valued in good faith
under the direction of the Board of Directors.
Options: The Portfolio may write or purchase option securities. The option
premium is the basis for recognition of unrealized or realized gain or loss on
the option. The cost of securities acquired or the proceeds from securities sold
through the exercise of the option is adjusted by the amount of the premium.
Securities Sold Short: The Portfolio may sell securities that it does not own
in anticipation of a decline in their market price. Gains or losses represent
the difference between the sale proceeds and the price of the security.
Deposits with Brokers: The Portfolio maintains liquid assets sufficient to
cover, on a daily basis, the current values of written options and securities
sold short.
Security Transactions and Investment Income: Security transactions are
accounted for on trade date. Realized gains and losses are recorded on an
identified cost basis. Dividend income is recorded on the ex-dividend date.
Interest income, accretion of discount and amortization of premium are recorded
on an accrual basis. Dividends declared on securities sold short are reported as
an expense.
Distributions to Shareholders: Distributions to shareholders are recorded by
the Portfolio on ex-dividend date. Dividends from net investment income are paid
annually. 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 Portfolio's capital
accounts to reflect income and gains available for distribution under income tax
regulations.
Expense Offset Arrangements: The Portfolio has an arrangement with its
custodian bank whereby the custodian's fees are paid indirectly by credits
earned on the Portfolio's cash on deposit with the bank. Such deposit
arrangement is an alternative to overnight investments.
ANNUAL REPORT CALVERT RESPONSIBLY INVESTED STRATEGIC GROWTH PORTFOLIO - 19
<PAGE>
Federal Income Taxes: No provision for federal income or excise tax is required
since the Portfolio 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 Directors of the
Portfolio. For its services, the Advisor receives a monthly fee based on an
annual rate of 1.5% of the Portfolio'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 Portfolio.
Calvert Administrative Services Company, an affiliate of the Advisor, provides
administrative services to the Portfolio for a fee, payable monthly, of .20% of
the Portfolio's annual average daily net assets.
Each Director who is not affiliated with the Advisor receives a fee of $500 for
each Board meeting attended plus an annual fee of $2,000 for Directors not
serving on other Calvert Fund Boards. Director's fees are allocated to each of
the portfolios served.
Note C-Investment Activity
During the period, purchases and sales of investments, other than short-term
securities, were $1,164,254 and $526,688, respectively.
The cost of investments owned at December 31, 1995 was substantially the same
for federal income tax and financial reporting purposes. Net unrealized
appreciation aggregated $97,640, of which $109,495 related to appreciated
securities and $11,855 related to depreciated securities.
The Portfolio has net realized capital loss carryforwards of $11,166 which may
be utilized to offset future capital gains until expiration in 2003.
The following table summarizes transactions in written call and put options
during the period:
Contracts Premiums
==========================================================
Options outstanding, beginning............ -- --
Options written........................... 6 $ 4,619
Options exercised......................... (2) (1,000)
Options closed............................ (2) (2,250)
-- -------
Options outstanding, ending............... 2 $ 1,369
== =======
Securities having an aggregate market value of $17,550 were identified to cover
open call options written at year end.
20 - CALVERT RESPONSIBLY INVESTED STRATEGIC GROWTH PORTFOLIO ANNUAL REPORT
<PAGE>
Acacia Capital Corporation
Calvert Responsibly Invested
Strategic Growth Portfolio
Financial Highlights
================
<TABLE>
<CAPTION>
From Inception
March 1, 1995
Through
December 31,
1995
- --------------------------------------------------------------------------------
<S> <C>
Net asset value, beginning .................................... $10.00
==========
Income from investment operations
- ---------------------------------
Net investment income ..................................... .25
Net realized and unrealized gain (loss) ................... .93
----------
Total from investment operations ...................... 1.18
----------
Distributions from
- ------------------
Net investment income ..................................... (.24)
----------
Total distributions ................................... (.24)
----------
Total increase (decrease) in net asset value .................. .94
----------
Net asset value, ending ....................................... $10.94
==========
Total return* ................................................. 9.65%
==========
Ratios to average net assets:
Net investment income ..................................... .43%(a)
==========
Total expenses+ ........................................... 2.17%(a)
==========
Net expenses .............................................. 1.64%(a)
==========
Expenses reimbursed ....................................... .20%(a)
==========
Portfolio turnover ............................................ 223%
==========
Net assets, ending (in thousands) ............................. $1,209
==========
Number of shares outstanding, ending (in thousands) ........... 111
==========
</TABLE>
(a) Annualized
* Total return is not annualized for periods of less than one year.
+ This ratio reflects total expenses before reduction for fees paid indirectly;
such reductions are included in the ratio of net expenses.
ANNUAL REPORT CALVERT RESPONSIBLY INVESTED STRATEGIC GROWTH PORTFOLIO - 21
<PAGE>
Annual Report-December 31, 1995
================
CALVERT RESPONSIBLY INVESTED
CAPITAL ACCUMULATION PORTFOLIO
Managed by Apodaca-Johnston, Brown Capital Management and
Fortaleza Asset Management
Dear Investor:
The 12-month period ended December 31, 1995 proved to be an excellent one
for most investors as a cooling economy, tame inflation and falling interest
rates worked together to push stock and bond prices higher. Gross Domestic
Product (GDP) slowed to below 2% annualized, based on estimates of fourth
quarter data. To stimulate the economy, the Federal Reserve lowered interest
rates twice in the second half of 1995, reducing its target for the federal
funds rate to 5.5% by year end.
Market Summary
The stock market, as measured by the Standard & Poor's 500(R) Index, had
its best year since 1975, rising 34% for the year. Stocks from the technology
and financial sectors were among the leading issues while trucking, steel and
transportation equipment stocks lagged behind.
As yields fell, bonds moved ahead, with the Lehman Aggregate Bond Index
advancing 18.47%. Money market investors paid a high price for security as the
average money market fund returned just over 5% for the entire year.
Calvert Responsibly Invested
Capital Accumulation Portfolio
[Performance graph appears here]
---------------------------------------------------------------
CRI S&P 500 RUSSELL S&P 400
---------------------------------------------------------------
7/91 10,000 10,000 10,000 10,000
---------------------------------------------------------------
12/91 10,725 10,908 11,048 10,000
---------------------------------------------------------------
12/92 12,198 11,738 13,082 10,000
---------------------------------------------------------------
12/93 13,120 12,919 15,554 10,000
---------------------------------------------------------------
12/94 11,818 13,153 15,271 10,092
---------------------------------------------------------------
12/95 16,498 18,089 19,274 13,095
---------------------------------------------------------------
Average Annual Total Return
(periods ending 12/31/95)
1 Year 39.46% Life of Fund 11.93% (7/91)
--------------------------------------------------------------------
Performance information is for the Portfolio only and does not
reflect charges and expenses of the variable annuity. Past
performance does not indicate future results.
Performance and Strategy
The 12-month period ended December 31, 1995 was a strongly positive one for
CRI Capital Accumulation Portfolio investors. The Portfolio's return of 39.46%
was well ahead of the Lipper Growth Funds Average of 30.79%.
22 - CALVERT RESPONSIBLY INVESTED CAPITAL ACCUMULATION PORTFOLIO ANNUAL REPORT
<PAGE>
Much of the Portfolio's performance during the period was attributable to
heavy weightings in the technology and financial sectors. Financial stocks
benefited from the favorable interest rate climate as both short- and long-term
interest rates declined throughout the year. Our technology sector holdings
focused primarily on semiconductor and networking companies, both of which
benefited from the worldwide trend towards productivity enhancement. Although
many stocks in this sector were beaten down during the fourth quarter, we
continue to view selected issues as good long-term plays.
Outlook
Looking forward to 1996, inflation and interest rates should remain low and
stocks should have very little competition from bonds. We will continue to
invest in companies that emphasize productivity enhancement, especially in the
healthcare and financial sectors. The good news is that fundamentals remain
strong for many of our favorite companies, suggesting strong earnings growth
throughout the year. Finally, 1996 is a Presidential election year, typically a
positive sign for the market. Collectively, these factors bode well for the
stocks in 1996.
As of this writing, a shareholder meeting was pending to merge the CRI Equity
Portfolio into the CRI Capital Accumulation Portfolio. Assuming the merger was
approved, we welcome all CRI Equity Portfolio shareholders.
We appreciate your investment in the CRI Capital Accumulation Portfolio.
Sincerely,
/s/ Clifton S. Sorrell
Clifton S. Sorrell
President
ANNUAL REPORT CALVERT RESPONSIBLY INVESTED CAPITAL ACCUMULATION PORTFOLIO - 23
<PAGE>
Report of Independent Accountants
================
To the Board of Directors of Acacia Capital Corporation and Shareholders of the
Calvert Responsibly Invested Capital Accumulation Portfolio:
We have audited the accompanying statement of assets and liabilities of
Calvert Responsibly Invested Capital Accumulation Portfolio (one of the
portfolios comprising the Acacia Capital Corporation), including the portfolio
of investments, as of December 31, 1995, and the related statement of operations
for the year then ended, and statement of changes in net assets and financial
highlights for each of the two years then ended. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits. The financial highlights for each of
the preceding years were audited by other auditors whose report dated January
31, 1994 expressed an unqualified opinion thereon.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of investments owned as of
December 31, 1995, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Calvert Responsibly Invested Capital Accumulation Portfolio as of December 31,
1995, the results of its operations for the year then ended the changes in its
net assets and financial highlights for each of the two years in the period then
ended, in conformity with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Baltimore, Maryland
January 26, 1996
24 - CALVERT RESPONSIBLY INVESTED CAPITAL ACCUMULATION PORTFOLIO ANNUAL REPORT
<PAGE>
Acacia Capital Corporation
Calvert Responsibly Invested
Capital Accumulation Portfolio
Portfolio of Investments
December 31, 1995
============
<TABLE>
<CAPTION>
Equity Securities (89.8%) Shares Value
- ---------------------------------------------------------------
<S> <C> <C>
Airline (0.7%)
Atlantic Coast Airlines, Inc. *............ 6,000 $ 61,500
--------
61,500
--------
Biotechnology (0.6%)
Amgen, Inc. *.............................. 900 53,438
--------
53,438
--------
Business Equipment and Services (1.4%)
Corporate Express, Inc. *.................. 2,500 75,313
U.S. Office Products Co. *................. 2,000 45,500
--------
120,813
--------
Chemicals (0.7%)
Minerals Technologies, Inc................. 600 21,900
Sigma Aldrich Corp......................... 900 44,550
--------
66,450
--------
Communications (5.2%)
Apertus Technologies, Inc. *............... 4,000 31,000
Cisco Systems, Inc. *...................... 1,000 74,625
DSC Communications Corp. *................. 800 29,500
DSP Communications, Inc. *................. 700 30,538
Microwave Power Devices, Inc. *............ 3,200 35,600
P Com, Inc. *.............................. 2,100 42,000
Satellite Technology Mgmt, Inc., Class A *. 400 7,700
Tellabs, Inc. *............................ 1,000 37,000
Teltrend, Inc. *........................... 1,700 79,475
Voice Control Systems, Inc. *.............. 1,300 9,100
VSI Enterprises, Inc. *.................... 11,000 41,938
Vtel Corp. *............................... 2,500 46,250
--------
464,726
--------
Computer - Software (12.3%)
Act Networks, Inc........................... 2,200 34,925
Carnegie Group, Inc. *...................... 5,000 48,750
Cheyenne Software, Inc. *................... 1,600 41,800
Compuware Corp. *........................... 2,000 37,000
</TABLE>
See notes to portfolio of investments.
ANNUAL REPORT CALVERT RESPONSIBLY INVESTED CAPITAL ACCUMULATION PORTFOLIO - 25
<PAGE>
Acacia Capital Corporation
Calvert Responsibly Invested
Capital Accumulation Portfolio
Portfolio of Investments (Continued)
December 31, 1995
============
<TABLE>
<CAPTION>
Equity Securities (Cont'd) Shares Value
- ----------------------------------------------------------
<S> <C> <C>
Computer - Software (Cont'd)
Comshare, Inc. *..................... 1,500 $ 39,000
Davidson & Assoc., Inc. *............ 2,100 46,200
Elcom International, Inc. *.......... 2,600 39,650
Enterprise Systems, Inc. *........... 800 24,400
Excalibur Technologies Corp. *....... 1,600 58,400
Firefox Communications, Inc. *....... 1,600 37,600
Fractal Design Corp. *............... 2,900 40,600
IDX Systems Corp. *.................. 1,500 52,125
Imnet Systems, Inc. *................ 3,000 72,000
Insignia Solutions *................. 2,400 28,200
MDL Information Systems, Inc. *...... 2,000 46,000
Metatools, Inc. *.................... 800 20,800
Microsoft Corp. *.................... 900 78,975
Network Gen Corp. *.................. 1,500 50,063
Number Nine Visual Technology *...... 900 7,875
Quarterdeck Corp. *.................. 1,800 49,500
Secure Computing Corp. *............. 100 5,600
Softkey International, Inc. *........ 3,500 80,938
Sterling Software, Inc............... 1,100 68,613
Veritas Software Co. *............... 1,500 57,000
Viasoft, Inc. *...................... 3,000 35,625
----------
1,101,639
----------
Computer - Systems (8.4%)
Asyst Technologies, Inc. *........... 1,000 35,250
Bay Networks, Inc. *................. 1,800 74,025
Diamond Multimedia Systems, Inc. *... 2,000 71,750
Discreet Logic, Inc. *............... 1,300 32,500
Interphase Corp. *................... 2,500 29,062
Lanoptics Ltd. *..................... 2,000 39,000
Mentor Graphics Corp................. 1,300 23,725
Meridian Data, Inc. *................ 4,300 46,763
Microcom, Inc. *..................... 2,000 52,000
Network Appliance, Inc. *............ 1,100 44,138
Oracle Systems Corp. *............... 1,425 60,384
Spacetex IMC Corp. *................. 5,000 58,750
</TABLE>
See notes to portfolio of investments.
26 - CALVERT RESPONSIBLY INVESTED CAPITAL ACCUMULATION PORTFOLIO ANNUAL REPORT
<PAGE>
Acacia Capital Corporation
Calvert Responsibly Invested
Capital Accumulation Portfolio
Portfolio of Investments (Continued)
December 31, 1995
==============
<TABLE>
<CAPTION>
Equity Securities (Cont'd) Shares Value
- -------------------------------------------------------
<S> <C> <C>
Computer - Systems (Cont'd)
Sync Research, Inc. *................. 1,000 $ 45,250
Verifone, Inc. *...................... 3,000 85,875
Visioneer Communications, Inc. *...... 2,300 51,175
---------
749,647
---------
Consumer Products (0.6%)
Newell Co............................. 2,100 54,338
---------
54,338
---------
Cosmetics (0.8%)
Guest Supply, Inc. *.................. 3,250 73,531
---------
73,531
---------
Electrical Equipment (2.8%)
AFC Cable Systems, Inc. *............. 2,900 39,875
Checkpoint Systems, Inc. *............ 2,000 74,750
Kulicke & Soffa Industries, Inc....... 2,000 46,500
Pacific Scientific Co................. 3,600 89,100
---------
250,225
---------
Electronics - Defense (0.5%)
Alpha Industries, Inc................. 3,500 49,437
---------
49,437
---------
Electronics - Instruments (1.8%)
Checkfree Corp. *..................... 1,500 32,250
Intermagnetics Gen Corp. *............ 2,575 54,075
Speedfam International, Inc. *........ 100 1,125
Ultratech Stepper, Inc. *............. 3,000 77,250
---------
164,700
---------
Electronics - Semiconductors (9.2%)
Adaptec, Inc. *....................... 1,000 41,000
Alantec Corp. *....................... 1,000 58,250
Ariel Corp. *......................... 3,000 32,625
E M C Corp. *......................... 2,100 32,288
Electrostar, Inc. *................... 3,000 25,875
</TABLE>
See notes to portfolio of investments.
ANNUAL REPORT CALVERT RESPONSIBLY INVESTED CAPITAL ACCUMULATION PORTFOLIO - 27
<PAGE>
Acacia Capital Corporation
Calvert Responsibly Invested
Capital Accumulation Portfolio
Portfolio of Investments (Continued)
December 31, 1995
=================
<TABLE>
<CAPTION>
Equity Securities (Cont'd) Shares Value
- -----------------------------------------------------------------
<S> <C> <C>
Electronics - Semiconductors (Cont'd)
Gasonics International, Inc. *................. 3,100 $ 41,850
Input/Output, Inc. *........................... 1,100 63,525
MRV Communications, Inc. *..................... 1,700 43,138
Photronic, Inc. *.............................. 1,750 46,813
PRI Automation, Inc. *......................... 1,200 42,150
Sanmina Corp. *................................ 500 25,938
Seeq Technology, Inc. *........................ 12,400 54,250
Sheldahl Co.................................... 2,000 36,250
Sierra Semi Conductor Corp. *.................. 4,700 65,213
Silicon Storage Technology, Inc. *............. 3,600 47,700
Solectron Corp. *.............................. 1,500 66,188
Uniphase Corp. *............................... 1,200 42,900
Vishay Intertechnology, Inc.................... 1,730 54,495
-------
820,448
-------
Entertainment (0.5%)
Pinnacle Systems, Inc. *....................... 1,200 29,700
Sanctuary Woods Multimedia Corp. *............. 6,400 18,400
-------
48,100
-------
Financial Services (4.4%)
First USA, Inc................................. 1,100 48,812
Glendale Federal Bank Federal Savings Bank *... 4,800 84,000
Green Tree Financial Corp...................... 2,600 68,575
ISB Financial Corp............................. 4,500 67,500
Roosevelt Financial Group, Inc................. 1,800 34,875
T. Rowe Price Associates, Inc.................. 1,800 88,650
-------
392,412
-------
Health Care (6.7%)
American Homepatient, Inc. *................... 2,000 59,000
CRA Managed Care, Inc. *....................... 2,000 43,750
First Commonwealth, Inc. *..................... 1,500 39,000
GRC International, Inc. *...................... 1,600 61,400
HCIA, Inc. *................................... 1,900 88,825
Health Care & Retirement Corp. *............... 1,600 56,000
</TABLE>
See notes to portfolio of investments.
28 - CALVERT RESPONSIBLY INVESTED CAPITAL ACCUMULATION PORTFOLIO ANNUAL REPORT
<PAGE>
Acacia Capital Corporation
Calvert Responsibly Invested
Capital Accumulation Portfolio
Portfolio of Investments (Continued)
December 31, 1995
============
<TABLE>
<CAPTION>
Equity Securities (Cont'd) Shares Value
============================================================
<S> <C> <C>
Health Care (Cont'd)
Healthsource, Inc.*........................ 2,000 $ 72,000
Manor Care, Inc............................ 2,300 80,500
United Healthcare Corp..................... 1,500 98,250
--------
598,725
--------
Insurance (0.8%)
AFLAC, Inc................................. 1,100 47,712
American Bankers Ins Group, Inc............ 700 27,300
--------
75,012
--------
Leisure (1.5%)
Carnival Corp., Class A.................... 2,500 60,937
Ride, Inc.*................................ 2,300 75,037
--------
135,974
--------
Machine Tools (0.5%)
FSI International, Inc.*................... 2,000 40,500
--------
40,500
--------
Medical (9.5%)
ALZA Corp.................................. 1,900 47,025
Cardinal Health, Inc....................... 1,200 65,700
Circon Corp.*.............................. 1,700 34,425
Diametrics Medical, Inc.*.................. 4,000 19,500
Hologic, Inc.*............................. 900 36,900
ICU Medical, Inc.*......................... 2,200 37,400
Inhale Therapeutic Systems*................ 3,000 29,250
Invacare Corp.............................. 1,500 37,875
Mecon, Inc.*............................... 6,100 96,837
North American Vaccine, Inc.*.............. 2,500 35,312
Northfield Laboratories, Inc.*............. 2,000 37,750
Pediatrix Medical Group*................... 1,800 49,500
QLT Phototherapeutics*..................... 1,500 15,187
Research Industries Corp.*................. 3,000 81,000
Respironics, Inc.*......................... 3,000 63,000
</TABLE>
See notes to portfolio of investments.
ANNUAL REPORT CALVERT RESPONSIBLY INVESTED CAPITAL ACCUMULATION PORTFOLIO - 29
<PAGE>
Acacia Capital Corporation
Calvert Responsibly Invested
Capital Accumulation Portfolio
Portfolio of Investments (Continued)
December 31, 1995
============
<TABLE>
<CAPTION>
Equity Securities (Cont'd) Shares Value
=====================================================
<S> <C> <C>
Medical (Cont'd)
Sofamor/Danek Group, Inc.*......... 1,000 $ 28,375
Steris Corp.*...................... 1,600 51,600
Visx, Inc.*........................ 1,100 42,900
Zygo Corp.*........................ 1,400 35,175
--------
844,711
--------
Oil & Gas (1.2%)
Belden & Blake Corp.*.............. 2,500 43,750
Stone Energy Corp.*................ 4,200 64,575
--------
108,325
--------
Pharmaceutical (2.5%)
Columbia Labs, Inc.*............... 5,000 42,812
Immulogic Pharmaceutical Corp.*.... 2,000 38,500
Merck & Co., Inc................... 1,500 98,625
Sequus Pharmaceuticals, Inc.*...... 3,000 42,750
--------
222,687
--------
Real Estate (1.1%)
General Growth Properties, Inc..... 2,000 41,500
Post Properties, Inc............... 1,800 57,375
--------
98,875
--------
Recycling (0.7%)
Imco Recycling, Inc................ 2,500 61,250
--------
61,250
--------
Restaurants (2.8%)
Buffets, Inc.*..................... 3,800 52,250
Cheesecake Factory, Inc.*.......... 3,300 70,950
CKE Restaurants, Inc.*............. 2,800 44,800
Daka International, Inc.*.......... 3,000 82,500
--------
250,500
</TABLE> --------
See notes to portfolio of investments.
30 - CALVERT RESPONSIBLY INVESTED CAPITAL ACCUMULATION PORTFOLIO ANNUAL REPORT
<PAGE>
Acacia Capital Corporation
Calvert Responsibly Invested
Capital Accumulation Portfolio
Portfolio of Investments (Continued)
December 31, 1995
=================
<TABLE>
<CAPTION>
Equity Securities (Cont'd) Shares Value
=====================================================================
<S> <C> <C>
Retail (5.9%)
Autozone, Inc.*................................ 2,000 $ 57,750
Dollar General Corp............................ 4,500 93,375
Federated Department Stores, Inc.*............. 2,000 55,000
Gadzooks, Inc.*................................ 2,200 55,550
Mens Wearhouse, Inc.*.......................... 3,150 81,112
Movie Gallery, Inc.*........................... 3,000 91,500
Revco D.S., Inc.*.............................. 2,100 59,325
Whole Foods Market, Inc.*...................... 2,500 34,687
----------
528,299
----------
Specialized Services (3.6%)
Ambassadors International, Inc.*............... 5,000 48,750
Devry, Inc.*................................... 2,000 54,000
Equifax, Inc................................... 2,950 63,056
Gartner Group, Inc., Class A*.................. 1,000 47,875
Lo Jack Corp................................... 3,400 37,825
U.S. Order, Inc.*.............................. 3,000 67,125
----------
318,631
----------
Telecommunications (0.4%)
Westell Technologies, Class A*................. 1,300 32,662
----------
32,662
----------
Textiles (2.7%)
Lydall, Inc.................................... 2,000 45,500
Marisa Christina, Inc.*........................ 2,000 34,000
Quiksilver, Inc.*.............................. 2,000 68,375
St. John Knits, Inc............................ 1,700 90,312
----------
238,187
----------
Total Equity Securities (Cost $6,545,208)..... 8,025,742
----------
TOTAL INVESTMENTS (89.8%)
(Cost $6,545,208+)........................... $8,025,742
==========
</TABLE>
Notes to Portfolio of Investments:
* Non-income producing.
+ Cost of investments is substantially the same for federal income tax purposes.
Percentages shown represent the percentage of investments to net assets.
ANNUAL REPORT CALVERT RESPONSIBLY INVESTED CAPITAL ACCUMULATION PORTFOLIO - 31
<PAGE>
Acacia Capital Corporation
Calvert Responsibly Invested
Capital Accumulation Portfolio
Statement of Assets and Liabilities
December 31, 1995
=================
<TABLE>
<CAPTION>
Assets
======================================================================================
<S> <C>
Investments in securities, at value - see accompanying portfolio..... $8,025,742
Cash................................................................. 948,957
Receivable for securities sold....................................... 31,079
Interest and dividends receivable.................................... 3,392
Other assets......................................................... 95
----------
Total assets........................................................ 9,009,265
----------
Liabilities
======================================================================================
Payable for securities purchased..................................... 64,066
Payable to Calvert Asset Management Company, Inc..................... 6,020
Accrued expenses and other liabilities............................... 3,900
----------
Total liabilities................................................... 73,986
----------
Net assets......................................................... $8,935,279
==========
Net Assets Consist of:
======================================================================================
Par value and paid-in capital applicable to 398,463 shares of common
stock outstanding; $1 par value, 4,000,000 shares authorized........ $7,434,676
Accumulated net realized gains (losses) on investments............... 20,069
Net unrealized appreciation (depreciation) on investments............ 1,480,534
----------
Net Assets......................................................... $8,935,279
==========
Net Asset Value per Share.......................................... $22.42
==========
</TABLE>
See notes to financial statements.
32 - CALVERT RESPONSIBLY INVESTED CAPITAL ACCUMULATION PORTFOLIO ANNUAL REPORT
<PAGE>
Acacia Capital Corporation
Calvert Responsibly Invested
Capital Accumulation Portfolio
Statement of Operations
Year Ended December 31, 1995
===================
<TABLE>
<CAPTION>
Net Investment Income
==============================================================================
<S> <C>
Investment Income
Interest income.................................................. $ 5,696
Dividend income.................................................. 22,183
----------
Total investment income........................................ 27,879
----------
Expenses
Investment advisory fee.......................................... 55,003
Directors' fees and expenses..................................... 930
Administrative fees.............................................. 6,905
Custodian fees................................................... 21,569
Registration fees................................................ 505
Reports to shareholders.......................................... 21,868
Professional fees................................................ 2,038
Contract Services................................................ 5,297
Miscellaneous.................................................... 358
Reimbursement from Advisor....................................... (6,905)
----------
Total expenses................................................. 107,568
Fees paid indirectly........................................... (21,569)
----------
Net expenses................................................ 85,999
----------
Net Investment Income (Loss)............................ (58,120)
----------
Realized and Unrealized Gain (Loss)
on Investments
==============================================================================
Net realized gain (loss) on investments.......................... 805,204
Change in unrealized appreciation or depreciation on investments. 1,398,962
----------
Net Realized and Unrealized Gain (Loss)
on Investments................................................. 2,204,166
----------
Increase (Decrease) in Net Assets
Resulting From Operations....................................... $2,146 046
==========
</TABLE>
See notes to financial statements.
ANNUAL REPORT CALVERT RESPONSIBLY INVESTED CAPITAL ACCUMULATION PORTFOLIO - 33
<PAGE>
Acacia Capital Corporation
Calvert Responsibly Invested
Capital Accumulation Portfolio
Statement of Changes in Net Assets
Years Ended December 31, 1995 and 1994
================
<TABLE>
<CAPTION>
Increase (Decrease)in Net Assets 1995 1994
===================================================================================
<S> <C> <C>
Operations
Net investment income................................... $ (58,120) $ 36,868
Net realized gain (loss) on investments................. 805,204 (260,154)
Change in unrealized appreciation or depreciation....... 1,398,962 (358,629)
----------- -----------
Increase (Decrease)
In Net Assets Resulting From Operations............. 2,146,046 (581,915)
----------- -----------
Distributions to shareholders from:
Net investment income................................... (3,628) (33,260)
Net realized gain on investments........................ (466,861) --
----------- -----------
Total distributions.................................... (470,489) (33,260)
----------- -----------
Capital share transactions
Shares sold............................................. 2,445,856 2,889,850
Reinvestment of distributions........................... 470,489 33,260
Shares redeemed......................................... (1,345,444) (1,605,337)
----------- -----------
Total capital share transactions...................... 1,570,901 1,317,773
----------- -----------
Total Increase (Decrease) In Net Assets.................. 3,246,458 702,598
Net Assets
===================================================================================
Beginning of year....................................... 5,688,821 4,986,223
----------- -----------
End of year (including undistributed net investment
income of $0 and $3,628, respectively.)................ $ 8,935,279 $ 5,688,821
=========== ===========
Capital Share Activity
===================================================================================
Shares sold............................................. 112,840 158,373
Reinvestment of distributions........................... 20,976 1,954
Shares redeemed......................................... (70,579) (88,169)
----------- -----------
Total capital share activity.......................... 63,237 72,158
=========== ===========
</TABLE>
See notes to financial statements.
34 - CALVERT RESPONSIBLY INVESTED CAPITAL ACCUMULATION PORTFOLIO ANNUAL REPORT
<PAGE>
Notes to Financial Statements
Note A--Significant Accounting Policies
General: The Capital Accumulation Portfolio (the "Portfolio"), a series of
Acacia Capital Corporation's Calvert Responsibly Invested (CRI) Portfolios, is
registered under the Investment Company Act of 1940 as a non-diversified, open-
end management investment company. Capital Accumulation was formerly Calvert-
Ariel Appreciation II Portfolio. The operations of each series are accounted for
separately. The shares of the Portfolio are sold to affiliated and unaffiliated
insurance companies for allocation to certain of their variable separate
accounts.
Security Valuation: Securities listed or traded on a national securities
exchange are valued at the last reported sale price. Unlisted securities and
listed securities for which the last sale price is not available are valued at
the most recent bid price or based on a yield equivalent obtained from the
securities' market maker. Short-term securities maturing within 60 days are
valued at amortized cost which approximates market. Other securities and assets
for which market quotations are not available or deemed inappropriate are valued
in good faith under the direction of the Board of Directors.
Security Transactions and Investment Income: Security transactions are
accounted for on trade date. Realized gains and losses are recorded on an
identified cost basis. Dividend income is recorded on the ex-dividend date.
Interest income, accretion of discount and amortization of premium are recorded
on an accrual basis.
Distributions to Shareholders: Distributions to shareholders are recorded by
the Portfolio on ex-dividend date. Dividends from net investment income are paid
annually. 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 Portfolio's capital
accounts to reflect income and gains available for distribution under income tax
regulations.
Expense Offset Arrangements: The Portfolio has an arrangement with its
custodian bank whereby the custodian's fees are paid indirectly by credits
earned on the Portfolio'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 Portfolio intends to continue to qualify as a regulated investment
company under the Internal Revenue Code and to distribute substantially all of
its earnings.
ANNUAL REPORT CALVERT RESPONSIBLY INVESTED CAPITAL ACCUMULATION PORTFOLIO - 35
<PAGE>
Note B--Related Party Transactions
Calvert Asset Management Company, Inc. (the "Advisor") is wholly-owned by
Calvert Group, Ltd. ("Calvert"), which is indirectly wholly-owned by Acacia
Mutual Life Insurance Company. The Advisor provides investment advisory services
and pays the salaries and fees of officers and affiliated Directors of the
Portfolio. For its services, the Advisor receives a monthly fee based on an
annual rate of .80% of the Portfolio'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 Portfolio.
Calvert Administrative Services Company, an affiliate of the Advisor, provides
administrative services to the Portfolio for an annual fee, payable monthly, of
.10% of the Portfolio's annual average daily net assets.
Each Director who is not affiliated with the Advisor receives a fee of $500 for
each Board meeting attended plus an annual fee of $2,000 for Directors not
serving on other Calvert Fund Boards. Director's fees are allocated to each of
the portfolios served.
Note C--Investment Activity
During the year, purchases and sales of investments, other than short-term
securities, were $11,778,141 and $8,448,713, respectively.
The cost of investments owned at December 31, 1995 was substantially the same
for federal income tax and financial reporting purposes. Net unrealized
appreciation aggregated $1,480,534, of which $1,821,342 related to appreciated
securities and $340,808 related to depreciated securities.
Note D--Subsequent Event
The shareholders of CRI Equity Portfolio have been asked to vote (under the
instructions of the contract holders) on February 16, 1996 on a merger into the
Portfolio effected by a tax-free exchange of net assets of CRI Equity,
approximately $4.5 million, for shares of the Portfolio.
36 - CALVERT RESPONSIBLY INVESTED CAPITAL ACCUMULATION PORTFOLIO ANNUAL REPORT
<PAGE>
<TABLE>
<CAPTION>
Acacia Capital Corporation
Calvert Responsibly Invested
Capital Accumulation Portfolio
Financial Highlights
=========
From
Inception
July 16,
Year Year Year Year 1991
Ended Ended Ended Ended Through
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1995 1994 1993 1992 1991
===========================================================================================
<S> <C> <C> <C> <C> <C>
Net asset value, beginning................ $16.97 $18.95 $17.87 $15.82 $15.00
====== ====== ====== ====== ======
Income from investment operations
Net investment income.................... (.15) .10 .08 .09 .26
Net realized and unrealized gain (loss).. 6.85 (1.98) 1.27 2.09 .82
------ ------ ------ ------ ------
Total from investment operations........ 6.70 (1.88) 1.35 2.18 1.08
------ ------ ------ ------ ------
Distributions from
Net investment income.................... (.01) (.10) (.08) (.09) (.26)
Net realized gains....................... (1.24) ---- (.19) (.04) ----
------ ------ ------ ------ ------
Total distributions..................... (1.25) (.10) (.27) (.13) (.26)
------ ------ ------ ------ ------
Total increase (decrease) in
net asset value.......................... 5.45 (1.98) 1.08 2.05 .82
------ ------ ------ ------ ------
Net asset value, ending................... $22.42 $16.97 $18.95 $17.87 $15.82
====== ====== ====== ====== ======
Total return*............................. 39.46% (9.92%) 7.56% 13.73% 7.25%
====== ====== ====== ====== ======
Ratios to average net assets:
Net investment income.................... (.84%) .68% .66% 1.19% .84%(a)
====== ====== ====== ====== ======
Total expenses+.......................... 1.56% ---- ---- ---- ----
====== ====== ====== ====== ======
Net expenses............................. 1.25% .79% .80% .39% ----
====== ====== ====== ====== ======
Expenses reimbursed...................... .10% ---- ---- .87% 4.23%(a)
====== ====== ====== ====== ======
Portfolio turnover........................ 135% 79% 26% 2% 5%
====== ====== ====== ====== ======
Net assets, ending (in thousands)......... $8,935 $5,689 $4,986 $ 870 $ 268
====== ====== ====== ====== ======
Number of shares outstanding,
ending (in thousands).................... 398 335 263 49 17
====== ====== ====== ====== ======
</TABLE>
(a) Annualized
* Total return is not annualized for periods of less than one year.
+ Effective December 31, 1995, this ratio reflects total expenses before
reduction for fees paid indirectly; such reductions are included in the ratio
of net expenses.
ANNUAL REPORT CALVERT RESPONSIBLY INVESTED CAPITAL ACCUMULATION PORTFOLIO - 37
<PAGE>
Annual Report--December 31, 1995
=========
CALVERT RESPONSIBLY INVESTED
GLOBAL EQUITY PORTFOLIO
Managed by Murray Johnstone, Ltd.
Dear Investor:
Nineteen ninety-five proved to be a mixed year for stock markets around the
globe. Asian markets, for example, were relatively flat while European stocks,
as measured by the Eurotop 100 Index, rose an average of 12.3%.
There was much of the same in the Americas. The U.S. market had an outstanding
year, with the Standard & Poor's 500(R) Index surging ahead 34%, while Canada's
Toronto Stock Exchange Index of 300 major issues ended the year up a modest 12%.
By contrast, Latin American markets from Mexico to Colombia recorded one of
their worst years ever.
Performance and Strategy
The Global Equity Portfolio returned 12.35% for the 12-month period ended
December 31, 1995 compared to 21.32% for the Morgan Stanley Capital
International World Index.
Initially in 1995, we focused our investments predominantly in Europe and
Southeast Asia. As the year progressed and prospects for a Japanese economic
recovery improved, we increased investment in Japan to 27% of the Portfolio.
Similarly, we increased allocations to Hong Kong and Singapore when the outlook
for their markets became more attractive. We raised cash for these purchases by
selling positions in Germany and the Netherlands. (Our sell decision was based
on the expectation that these markets would eventually suffer due to an extreme
rise in the value of their national currencies.) By year-end 1995, our
investments in Continental Europe and the Far East outperformed the overall
markets in each of these regions.
Calvert Responsibly Invested
Global Equity Portfolio
[GRAPH APPEARS HERE]
- ------------------------------------------------------------------------------
Comparison of change in value of a
hypothetical $10,000 investment.
CRI Global MSCI World Index
---------------------------------
6/92 $10,000 $10,000
12/92 9,673 9,729
12/93 12,548 11,979
12/94 12,281 12,648
12/95 13,797 15,344
Average Annual Total Return
(periods ending 12/31/95)
1 Year 12.35% Life of Fund 9.50% (6/92)
- ------------------------------------------------------------------------------
Performance information is for the Portfolio only and does not
reflect charges and expenses of the variable annuity.
Past performance does not indicate future results.
- ------------------------------------------------------------------------------
38 - CALVERT RESPONSIBLY INVESTED GLOBAL EQUITY PORTFOLIO ANNUAL REPORT
<PAGE>
Underexposure to the U.S. market and overexposure to the Mexican market were
the two factors primarily responsible for the Portfolio's underperformance. We
underweighted the U.S. market because our assessment showed that, in historical
terms, it had become overvalued and that corporate earnings were in a downward
phase. The decision proved costly because the U.S. market turned in one of the
year's best performances worldwide.
We maintained our Mexican holdings because we believed equities would recover
from their downward spiral in 1994. You may recall that Mexican stocks fell
after the peso devaluation in December of 1994 caused an economic crisis. In
January of 1995, the government arranged a series of standby loans and in March
instituted an austerity program which we anticipated would result in recession.
However, we believed that equity prices already reflected the downturn and that
stocks were poised for a comeback.
As we expected, equities recovered throughout the year. But global investors
began selling pesos when fears arose that the Mexican government might loosen
austerity measures and that corporate earnings might fall short of expectations.
The weakening of the peso reduced the dollar-denominated value of Mexican
investments and resulted in further losses for U.S. investors.
Outlook
We believe the worldwide structural shift towards lower inflation, which began
taking shape in 1995, will continue in 1996. Low interest rates will persist as
a result. Moreover, earnings will begin to exert a greater influence on stock
prices than money supply changes by the world's central banks. For this reason,
we will focus our attention on markets in the Far East, which are in a growth
phase, and reduce our exposure to markets in the U.S., the U.K. and Europe. We
will maintain our investments in Latin America as our analysis indicates it
should enjoy good growth in the year ahead.
We appreciate your investment in the CRI Global Equity Portfolio.
Sincerely,
/s/ Clifton S. Sorrell
Clifton S. Sorrell
President
ANNUAL REPORT CALVERT RESPONSIBLY INVESTED GLOBAL EQUITY PORTFOLIO - 39
<PAGE>
Report of Independent Accountants
================
To the Board of Directors of Acacia Capital Corporation and Shareholders of the
Calvert Responsibly Invested Global Equity Portfolio:
We have audited the accompanying statement of assets and liabilities of
Calvert Responsibly Invested Global Equity Portfolio (one of the portfolios
comprising the Acacia Capital Corporation), including the portfolio of
investments, as of December 31, 1995, and the related statement of operations
for the year then ended, and statement of changes in net assets and financial
highlights for each of the two years then ended. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits. The financial highlights for each of
the preceding years were audited by other auditors whose report dated January
31, 1994 expressed an unqualified opinion thereon.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of investments owned as of
December 31, 1995, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Calvert Responsibly Invested Global Equity Portfolio as of December 31, 1995,
the results of its operations for the year then ended, and the changes in its
net assets and financial highlights for each of the two years in the period then
ended, in conformity with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Baltimore, Maryland
January 26, 1996
40 - CALVERT RESPONSIBLY INVESTED GLOBAL EQUITY PORTFOLIO ANNUAL REPORT
<PAGE>
Acacia Capital Corporation
Calvert Responsibly Invested
Global Equity Portfolio
Portfolio of Investments
December 31, 1995
========
<TABLE>
<CAPTION>
Equity Securities (93.6%) Shares Value
- --------------------------------------------------------------------------------
<S> <C> <C>
Australia (2.1%)
National Australia Bank.................................... 23,000 $206,853
--------
206,853
--------
Belgium (0.1%)
G.I.B...................................................... 19 813
--------
813
--------
Denmark (1.5%)
Tele Danmark............................................... 2,680 146,248
--------
146,248
--------
France (3.1%)
Ass Gen de France.......................................... 3,105 103,986
CPR CIE Par Reesco......................................... 690 56,347
Credit Fonc France......................................... 2,691 38,906
Pinault Printemps Redoute, S.A. *.......................... 530 105,740
--------
304,979
--------
Hong Kong (3.6%)
Hysan Development.......................................... 55,000 145,457
Sun Hung Kai Props......................................... 25,000 204,494
--------
349,951
--------
Italy (3.5%)
IMI........................................................ 23,000 144,825
Telecom Italia *........................................... 99,300 104,419
Telecom Italia *........................................... 53,600 94,333
--------
343,577
--------
Japan (27.2%)
Canon, Inc................................................. 10,000 181,114
Futaba Corp................................................ 2,000 91,622
Itochu Corp................................................ 28,000 188,475
Kuraray Co................................................. 17,000 186,053
Mori Seiki Co.............................................. 9,000 203,099
NEC Corp................................................... 15,000 183,051
Nippon Telephone & Telegraph............................... 23 186,005
Omron Corp................................................. 7,000 161,356
Sanwa Bank................................................. 6,000 122,034
Secom Co................................................... 3,000 208,620
</TABLE>
See notes to portfolio of investments.
ANNUAL REPORT CALVERT RESPONSIBLY INVESTED GLOBAL EQUITY PORTFOLIO - 41
<PAGE>
Acacia Capital Corporation
Calvert Responsibly Invested
Global Equity Portfolio
Portfolio of Investments (Continued)
December 31, 1995
========
<TABLE>
<CAPTION>
Equity Securities (Cont'd) Shares Value
- --------------------------------------------------------------------------------
<S> <C> <C>
Japan (Cont'd)
Sumitomo Trust & Banking................................. 14,000 $ 197,966
Takeda Chem Inds......................................... 12,000 197,579
TDK Corp................................................. 3,000 153,123
Teijin................................................... 23,000 117,617
Tokyo Style Co........................................... 10,000 171,428
Tsukishima Kikai......................................... 6,000 127,845
----------
2,676,987
----------
Netherlands (1.9%)
Elsevier, N.V........................................... 7,200 96,018
Ver Ned Uitgevers........................................ 675 92,667
----------
188,685
----------
New Zealand (2.4%)
Telecom Corp. of New Zealand............................. 55,000 237,317
----------
237,317
----------
Norway (2.0%)
Tomra Systems............................................ 25,500 201,291
----------
201,291
----------
Singapore (5.1%)
Keppel Corp.............................................. 17,000 151,432
O/Seas Chinese Bank...................................... 18,000 225,239
United Overseas, Ltd. (warrants) *....................... 149,000 126,405
----------
503,076
----------
Spain (4.4%)
Aguas de Barcelona....................................... 3,957 118,090
Dragados Y Constr........................................ 10,851 142,682
Sotogrande, S.A. *....................................... 30,650 57,105
Vallehermoso, S.A........................................ 6,340 117,862
----------
435,739
----------
Switzerland (1.7%)
Ciba Geigy, A.G.......................................... 91 80,074
Sandoz, A.G.............................................. 96 87,886
----------
167,960
----------
</TABLE>
See notes to portfolio of investments.
42 - CALVERT RESPONSIBLY INVESTED GLOBAL EQUITY PORTFOLIO ANNUAL REPORT
<PAGE>
Acacia Capital Corporation
Calvert Responsibly Invested
Global Equity Portfolio
Portfolio of Investments (Continued)
December 31, 1995
========
<TABLE>
<CAPTION>
Equity Securities (Cont'd) Shares Value
- --------------------------------------------------------------------------------
<S> <C> <C>
United Kingdom (8.9%)
Allied Irish Banks........................................ 31,800 $173,841
Argyll Group.............................................. 12,000 63,364
Beazer Homes *............................................ 22,000 59,792
British Telecom........................................... 8,000 43,858
Cable & Wireless.......................................... 4,000 28,638
Commercial Union.......................................... 3,000 29,259
Dalgety................................................... 9,000 56,678
EMAP...................................................... 6,000 49,852
Glynwed International..................................... 10,000 49,542
Hays...................................................... 7,500 43,796
Kingfisher................................................ 5,000 42,087
Low & Bonar............................................... 7,000 50,225
Marks & Spencer........................................... 4,500 31,449
McBride *................................................. 15,000 44,960
National Westminster...................................... 5,000 50,357
Severn Trent *............................................ 5,000 53,386
--------
871,084
--------
United States (26.1%)
Banpais, S.A. ADR*....................................... 10,000 0
Cardinal Health, Inc...................................... 3,000 164,250
Cifra, S.A. de C.V........................................ 69,000 72,526
Duriron, Inc.............................................. 3,500 81,813
Enron Corp................................................ 3,000 114,375
Grupo Indl Durango, S.A. ADR*............................. 11,000 72,875
Hong Kong Land Hld........................................ 100,000 185,000
Illinois Tool Works, Inc.................................. 3,200 188,800
MBNA Corp................................................. 4,000 147,500
McGraw Hill Cos., Inc..................................... 2,000 174,250
Metrocall, Inc. *......................................... 3,000 57,375
Molex, Inc., Class A...................................... 5,000 153,125
New World Power Corp. *................................... 3,900 6,825
Northern Trust Corp. (rights)............................. 2,400 134,400
Partner Re Holding........................................ 6,700 184,250
Quorum Health Group, Inc. *............................... 6,500 143,000
Seitel, Inc. *............................................ 3,500 123,813
Telefonos de Mexico, S.A. ADR............................. 3,600 114,750
</TABLE>
See notes to portfolio of investments.
ANNUAL REPORT CALVERT RESPONSIBLY INVESTED GLOBAL EQUITY PORTFOLIO - 43
<PAGE>
Acacia Capital Corporation
Calvert Responsibly Invested
Global Equity Portfolio
Portfolio of Investments (Continued)
December 31, 1995
========
<TABLE>
<CAPTION>
Equity Securities (Cont'd) Shares Value
- --------------------------------------------------------------------------------
<S> <C> <C>
United States (Cont'd)
Transportadora de Gas, ADR............................. 21,000 $ 270,375
Worldcom, Inc. *....................................... 5,122 180,551
----------
2,569,853
----------
Total Equity Securities (Cost $8,959,656).............. 9,204,413
----------
Principal
Time Deposit (2.7%) Amount
- --------------------------------------------------------------------------------
State Street Bank, London, 5.625%, 1/3/96................ $261,073 261,073
----------
Total Time Deposit (Cost $261,073)..................... 261,073
----------
TOTAL INVESTMENTS (96.3%)
(Cost $9,220,729 +).................................. $9,465,486
==========
</TABLE>
Notes to Portfolio of Investments:
* Non-income producing.
+ Cost of investments is substantially the same for federal income tax purposes.
Percentages shown represent the percentage of investments to net assets.
44 - CALVERT RESPONSIBLY INVESTED GLOBAL EQUITY PORTFOLIO ANNUAL REPORT
<PAGE>
Acacia Capital Corporation
Calvert Responsibly Invested
Global Equity Portfolio
Statement of Assets and Liabilities
December 31, 1995
========
<TABLE>
<CAPTION>
Assets
- --------------------------------------------------------------------------------
<S> <C>
Investments in securities, at value - see accompanying portfolio... $9,465,486
Cash............................................................... 351,453
Interest and dividends receivable.................................. 27,369
Other assets....................................................... 189
----------
Total assets..................................................... 9,844,497
----------
Liabilities
- --------------------------------------------------------------------------------
Payable to Calvert Asset Management Company, Inc................... 9,115
Accrued expenses and other liabilities............................. 4,435
Total liabilities................................................ 13,550
----------
Net assets..................................................... $9,830,947
----------
Net Assets Consist of:
- --------------------------------------------------------------------------------
Par value and paid-in capital applicable to 573,183 shares of
common stock outstanding; $1 par value, 4,000,000 shares
authorized....................................................... $9,547,475
Undistributed net investment income (loss)......................... 12,469
Accumulated net realized gains (losses) on investments and
foreign currencies............................................... 23,265
Net unrealized appreciation (depreciation) on investments and
assets and liabilities in foreign currencies..................... 247,738
----------
Net Assets..................................................... $9,830,947
==========
Net Asset Value per Share...................................... $17.15
==========
</TABLE>
See notes to financial statements.
ANNUAL REPORT CALVERT RESPONSIBLY INVESTED GLOBAL EQUITY PORTFOLIO - 45
<PAGE>
Acacia Capital Corporation
Calvert Responsibly Invested
Global Equity Portfolio
Statement of Operations
Year Ended December 31, 1995
========
<TABLE>
<CAPTION>
Net Investment Income
- --------------------------------------------------------------------------------
<S> <C>
Investment Income
Interest income.................................................. $ 38,902
Dividend income (net of foreign taxes of $20,715)................ 204,454
----------
Total investment income........................................ 243,356
----------
Expenses
Investment advisory fee.......................................... 93,418
Directors' fees and expenses..................................... 419
Administrative fees.............................................. 40,000
Custodian fees................................................... 36,172
Reports to shareholders.......................................... 5,546
Professional fees................................................ 1,697
Miscellaneous.................................................... 288
Reimbursement from Advisor....................................... (36,720)
----------
Total expenses................................................. 140,820
Fees paid indirectly........................................... (36,034)
----------
Net expenses................................................. 104,786
----------
Net Investment Income (Loss).............................. 138,570
----------
Realized and Unrealized Gain (Loss)
on Investments
- --------------------------------------------------------------------------------
Net realized gain (loss) on:
Securities....................................................... 90,563
Foreign currencies............................................... 194,651
----------
285,214
----------
Change in unrealized appreciation or depreciation on:
Securities....................................................... 719,592
Assets and liabilities in foreign currencies..................... 2,725
----------
722,317
----------
Net Realized and Unrealized Gain (Loss)
On Investments................................................. 1,007,531
----------
Increase (Decrease) In Net Assets
Resulting From Operations...................................... $1,146,101
==========
</TABLE>
See notes to financial statements.
46 - CALVERT RESPONSIBLY INVESTED GLOBAL EQUITY PORTFOLIO ANNUAL REPORT
<PAGE>
Acacia Capital Corporation
Calvert Responsibly Invested
Global Equity Portfolio
Statement of Changes in Net Assets
Years Ended December 31, 1995 and 1994
========
<TABLE>
<CAPTION>
Increase (Decrease) in Net Assets 1995 1994
- --------------------------------------------------------------------------------
<S> <C> <C>
Operations
Net investment income............................. $ 138,570 $ 37,962
Net realized gain (loss) on investments........... 285,214 609,785
Change in unrealized appreciation or depreciation. 722,317 (968,554)
----------- -----------
Increase (Decrease) In Net Assets
Resulting From Operations....................... 1,146,101 (320,807)
----------- -----------
Distributions to shareholders from:
Net investment income............................. (137,673) (62,195)
Net realized gain on investments.................. (249,074) (587,297)
----------- -----------
Total distributions............................. (386,747) (649,492)
----------- -----------
Capital share transactions
Shares sold....................................... 3,017,493 5,389,240
Reinvestment of distributions..................... 386,745 649,491
Shares redeemed................................... (2,097,365) (1,833,009)
----------- -----------
Total capital share transactions................ 1,306,873 4,205,722
----------- -----------
Total Increase (Decrease)
In Net Assets....................................... 2,066,227 3,235,423
Net Assets
- --------------------------------------------------------------------------------
Beginning of year................................. 7,764,720 4,529,297
----------- -----------
End of year (including undistributed net
investment income (loss) of $12,469 and
$(1,303), respectively.)........................ $ 9,830,947 $ 7,764,720
----------- -----------
Capital Share Activity
- --------------------------------------------------------------------------------
Shares sold....................................... 186,095 293,138
Reinvestment of distributions..................... 22,551 40,294
Shares redeemed................................... (123,999) (100,451)
----------- -----------
Total capital share activity.................... 84,647 232,981
=========== ===========
</TABLE>
See notes to financial statements.
ANNUAL REPORT CALVERT RESPONSIBLY INVESTED GLOBAL EQUITY PORTFOLIO - 47
<PAGE>
Notes to Financial Statements
Note A-Significant Accounting Policies
General: The Global Equity Portfolio (the "Portfolio"), a series of Acacia
Capital Corporation's Calvert Responsibly Invested (CRI) Portfolios, is
registered under the Investment Company Act of 1940 as a diversified, open-end
management investment company. The operations of each series are accounted for
separately. The shares of the Portfolio are sold to affiliated and unaffiliated
insurance companies for allocation to certain of their variable separate
accounts.
Security Valuation: Securities listed or traded on a national securities
exchange are valued at the last reported sales price. Unlisted securities and
listed securities for which the last sale price is not available are valued at
the most recent bid price or based on a yield equivalent obtained from the
securities' market maker. Short-term securities maturing within 60 days are
valued at amortized cost which approximates market. Foreign security prices,
furnished by quotation services in the security's local currency, are translated
using the current U. S. dollar exchange rate. The Portfolio may invest in
securities whose resale is subject to restrictions. Restricted securities and
other securities and assets for which market quotations are not available or
deemed inappropriate are valued in good faith under the direction of the Board
of Directors.
Security Transactions and Investment Income: Security transactions are
accounted for on trade date. Realized gains and losses are recorded on an
identified cost basis. Dividend income is recorded on the ex-dividend date or,
in the case of dividends on certain foreign securities, as soon as the Portfolio
is informed of the ex-dividend date. Interest income, accretion of discount and
amortization of premium are recorded on an accrual basis.
Foreign Currency Transactions: The Portfolio's accounting records are
maintained in U. S. dollars. For purposes of valuation of investments, assets
and liabilities on each date of net asset value determination, the current
exchange rate is applied to foreign currencies for translation to U. S. dollars.
Security transactions, income and expenses are converted at the prevailing rate
of exchange on the date of the event. The changes in foreign exchange rates on
securities are included in the net realized and unrealized gain or loss on
securities.
Distributions to Shareholders: Distributions to shareholders are recorded by
the Portfolio on ex-dividend date. Dividends from net investment income are paid
annually. 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 Portfolio's capital
accounts to reflect income and gains available for distribution under income tax
regulations.
Expense Offset Arrangements: The Portfolio has an arrangement with its
custodian bank whereby the custodian's fees are paid indirectly by credits
earned on the Portfolio's cash on deposit with the bank. Such deposit
arrangement is an alternative to overnight investments.
48 - CALVERT RESPONSIBLY INVESTED GLOBAL EQUITY PORTFOLIO ANNUAL REPORT
<PAGE>
Federal Income Taxes: No provision for federal income or excise tax is required
since the Portfolio 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 Directors of the
Portfolio. For its services, the Advisor receives a monthly fee based on an
annual rate of 1% of the Portfolio'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 Portfolio.
Calvert Administrative Services Company, an affiliate of the Advisor, provides
administrative services to the Portfolio for a fee, payable monthly, of the
greater of $40,000 or .10% of the Portfolio's annual average daily net assets.
Each Director who is not affiliated with the Advisor receives a fee of $500 for
each Board meeting attended plus an annual fee of $2,000 for Directors not
serving on other Calvert Fund Boards. Director's fees are allocated to each of
the portfolios served.
NOTE C--Investment Activity
During the year, purchases and sales of investments, other than short-term
securities, were $9,021,138 and $7,827,884, respectively.
The cost of investments owned at December 31, 1995 was substantially the same
for federal income tax and financial reporting purposes. Net unrealized
appreciation aggregated $244,757, of which $951,801 related to appreciated
securities and $707,044 related to depreciated securities.
ANNUAL REPORT CALVERT RESPONSIBLY INVESTED GLOBAL EQUITY PORTFOLIO - 49
<PAGE>
<TABLE>
<CAPTION>
ACACIA CAPITAL CORPORATION
CALVERT RESPONSIBLY INVESTED
GLOBAL EQUITY PORTFOLIO
FINANCIAL HIGHLIGHTS
=========
From Inception
June 30, 1992
Year Ended Year Ended Year Ended Through
December 31, December 31, December 31, December 31,
1995 1994 1993 1992
========================================================================================================
<S> <C> <C> <C> <C>
Net asset value, beginning..................... $15.89 $17.72 $14.57 $15.00
========= ========= ========= ==========
Income from investment operations
Net investment income......................... .27 .11 .11 (.02)
Net realized and unrealized gain (loss)....... 1.69 (.49) 4.07 (.41)
--------- --------- --------- ----------
Total from investment operations............. 1.96 (.38) 4.18 (.43)
--------- --------- --------- ----------
Distributions from
Net investment income......................... (.25) (.13) (.08) ----
Net realized gains............................ (.45) (1.32) (.95) ----
--------- --------- --------- ----------
Total distributions.......................... (.70) (1.45) (1.03) ----
--------- --------- --------- ----------
Total increase (decrease) in net asset value... 1.26 (1.83) 3.15 (.43)
--------- --------- --------- ----------
Net asset value, ending........................ $17.15 $15.89 $17.72 $14.57
========= ========= ========= ==========
Total return*.................................. 12.35% (2.13%) 29.72% (3.27%)
========= ========= ========= ==========
Ratios to average net assets:
Net investment income......................... 1.48% .59% 1.00% (.98%)(a)
========= ========= ========= ==========
Total expenses+............................... 1.51% ---- ---- ----
========= ========= ========= ==========
Net expenses.................................. 1.12% 1.24% .94% .98%(a)
========= ========= ========= ==========
Expenses reimbursed........................... .39% .29% .10% 1.07%(a)
========= ========= ========= ==========
Portfolio turnover............................. 90% 84% 64% ----
========= ========= ========= ==========
Net assets, ending (in thousands).............. $9,831 $7,765 $4,529 $ 236
========= ========= ========= ==========
Number of shares outstanding,
ending (in thousands)......................... 573 489 256 16
========= ========= ========= ==========
</TABLE>
(a) Annualized
* Total return is not annualized for periods of less than one year.
+ Effective December 31, 1995, this ratio reflects total expenses before
reduction for fees paid indirectly; such reductions are included in the ratio
of net expenses.
50 - CALVERT RESPONSIBLY INVESTED GLOBAL EQUITY PORTFOLIO ANNUAL REPORT
<PAGE>
Annual Report--December 31, 1995
=========
CALVERT RESPONSIBLY INVESTED
BALANCED PORTFOLIO
Managed by Calvert Asset Management Company, Inc. and NCM Capital
Management, Inc., effective February 1995
Dear Investor:
In seeking to provide investors with consistently competitive returns, the
Board of Directors selected different investment managers. In February, NCM
Capital assumed responsibility for managing the equity portion of the Portfolio
and Calvert Asset Management Company, Inc. assumed responsibility for managing
the Portfolio's fixed-income assets. U.S. Trust Company of Boston was the
previous investment manager.
The 12-month period ended December 31, 1995 proved to be an excellent one for
most investors as a cooling economy, tame inflation and falling interest rates
worked together to push stock and bond prices higher. Gross Domestic Product
(GDP) slowed to 2% annualized, based on estimates of fourth quarter data. To
stimulate the economy, the Federal Reserve lowered interest rates twice in the
second half of 1995, reducing its target for the federal funds rate to 5.5% by
year end.
Market Summary
The stock market, as measured by the Standard & Poor's 500(R) Index, had its
best year since 1975, rising 34% for the year. Stocks from the technology and
financial sectors were among the leading issues. Investors sought the safety of
large-capitalization stocks which outperformed small-capitalization stocks by a
significant margin.
Calvert Responsibly Invested
Balanced Portfolio
[GRAPH APPEARS HERE]
- ------------------------------------------------------------------------------
Comparison of change in value of a
hypothetical $10,000 investment.
CRI Balanced S&P 500(R) Lehman Aggregate Bond 90-Day T-Bill
-----------------------------------------------------------------
9/86 $10,000 $ 9,667 $10,223 $10,181
12/86 9,681 10,000 10,000 10,000
12/87 10,341 10,175 10,505 10,782
12/88 11,544 12,877 11,334 11,521
12/89 13,936 16,950 12,981 12,492
12/90 14,519 16,423 14,144 13,459
12/91 16,888 21,415 16,407 14,196
12/92 18,174 23,045 17,621 14,690
12/93 19,628 25,363 19,339 15,137
12/94 18,992 25,822 18,774 15,789
12/95 24,648 35,513 22,242 16,681
Average Annual Total Return
(periods ending 12/31/95)
1 Year 29.87% 5 Year 11.16%
Life of Fund 10.15% (9/86)*
- ------------------------------------------------------------------------------
* New sub-advisors assumed management of the
Portfolio effective February 1995.
Performance information is for the Portfolio only and does not
reflect charges and expenses of the variable annuity. Past
performance does not indicate future results.
- ------------------------------------------------------------------------------
ANNUAL REPORT CALVERT RESPONSIBLY INVESTED BALANCED PORTFOLIO - 51
<PAGE>
As yields fell, bonds moved ahead, with the Lehman Aggregate Bond Index
advancing 18.47%. Money market investors paid a high price for security as the
average money market fund returned just over 5% for the entire year.
Performance and Strategy
For the 12-month period ended December 31, 1995, the Balanced Portfolio's
total return of 29.87% was significantly ahead of the Lipper Balanced Funds
Average total return of 25.16%.
The Portfolio's above-average gain was due to its substantial equity
investments in the financial, technology and consumer-staple sectors.
Particularly, our financial service holdings benefited from declining interest
rates and from merger and acquisition activity in the banking area. The fixed-
income portion is continuing to make a significant contribution to the
Portfolio's performance. Near the end of the year, we added callable agency
securities to the Portfolio as they became undervalued by the rest of the
market. Currently, the average maturity of the Portfolio's bond portion is
approximately 7.9 years.
Outlook
Nineteen ninety-six marks the sixth year of the economic expansion. With a
sluggish economy at hand, we would not be surprised to see the Federal Reserve
cut short-term rates another 50 basis points, possibly as early as the first
quarter. Our forecast for the year calls for continued slow economic growth, low
inflation and low interest rates. Stocks and bonds should continue to move
higher in 1996, albeit at a slower rate than in 1995.
As of this writing, a shareholder meeting was pending to merge the CRI Bond
Portfolio into the CRI Balanced Portfolio. Assuming the merger was approved, we
welcome all CRI Bond Portfolio shareholders.
We appreciate your investment in the CRI Balanced Portfolio.
Sincerely,
/s/ Clifton S. Sorrell
Clifton S. Sorrell
President
52 - CALVERT RESPONSIBLY INVESTED BALANCED PORTFOLIO ANNUAL REPORT
<PAGE>
Report of Independent Accountants
==============
To the Board of Directors of Acacia Capital Corporation and Shareholders of the
Calvert Responsibly Invested Balanced Portfolio:
We have audited the accompanying statement of assets and liabilities of
Calvert Responsibly Invested Balanced Portfolio (one of the portfolios
comprising the Acacia Capital Corporation), including the portfolio of
investments, as of December 31, 1995, and the related statement of operations
for the year then ended, and statement of changes in net assets and financial
highlights for each of the two years then ended. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits. The financial highlights for each of
the preceding years were audited by other auditors whose report dated January
31, 1994 expressed an unqualified opinion thereon.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of investments owned as of
December 31, 1995, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Calvert Responsibly Invested Balanced Portfolio as of December 31, 1995, the
results of its operations for the year then ended, and the changes in its net
assets and financial highlights for each of the two years in the period then
ended, in conformity with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Baltimore, Maryland
January 26, 1996
ANNUAL REPORT CALVERT RESPONSIBLY INVESTED BALANCED PORTFOLIO - 53
<PAGE>
Acacia Capital Corporation
Calvert Responsibly Invested
Balanced Portfolio
Portfolio of Investments
December 31, 1995
==============
<TABLE>
<CAPTION>
Principal
Corporate Debt (8.2%) Amount Value
=========================================================================================
<S> <C> <C>
BellSouth Savings, 9.19%, 7/1/03.................................. $ 395,312 $ 445,374
CIT Group Holdings, Inc., 5.82%, 5/11/98.......................... 3,000,000 2,994,132
First Union Corp., 7.50%, 4/15/35 (Tender 7/1/05 @ 100)........... 2,000,000 2,215,020
Puget Power Consv., 6.45%, 4/11/05................................ 1,904,373 1,989,544
United Dominion Reality Trust, Inc., 8.50%, 9/15/24............... 1,200,000 1,351,200
----------
Total Corporate Debt (Cost $8,687,485)........................... 8,995,270
----------
Mortgage Backed Securities (7.8%)
=========================================================================================
Advanta Corp., 5.50%, 3/25/10..................................... 2,294,773 2,209,436
Federal Home Loan Mortgage Corp., 6.00%, 12/15/19................. 1,000,000 999,470
Federal Home Loan Mortgage Corp., 6.50%, 8/15/21.................. 1,000,000 1,020,350
Federal Home Loan Mortgage Corp., 7.00%, 9/1/25................... 976,288 985,133
Federal National Mortgage Assn., 6.50%, 12/25/23.................. 1,000,000 993,090
Federal National Mortgage Assn., 7.00%, 8/1/25.................... 990,110 998,149
Government National Mortgage Assn., 6.50%, 12/15/23............... 1,447,099 1,435,797
----------
Total Mortgage Backed Securities (Cost $8,343,292)............... 8,641,425
----------
Municipal Obligations (6.7%)
=========================================================================================
Gardena, California Certificates of Participation VRDN,
6.15%, 7/1/25, LOC: Sumitomo Trust & Banking Ltd. **............. 1,500,000 1,500,000
Illinois Housing Development Authority VRDN, 6.027%,
6/1/22, AMBAC Insured (Tender 1/2/96 @ 100) **................... 1,600,000 1,600,000
Illinois Housing Development Authority, 8.35%, 8/1/26............. 1,170,000 1,247,922
Long Beach, California Pension Obligation, 7.14%, 9/1/10,
FSA Insured...................................................... 1,000,000 1,043,420
Sacramento County, California Pension Funding, 5.98%,
8/15/14, MBIA Insured (Tender 2/15/96 @ 100)..................... 2,000,000 2,000,000
----------
Total Municipal Obligations (Cost $7,277,136).................... 7,391,342
----------
Repurchase Agreements, for Deposit
at Cost, Collateralized by Securities
Issued or Guaranteed by the
U.S. Government (2.7%)
=========================================================================================
Donaldson, Lufkin, Jenerette: 5.85%, dated 12/29/95, due 1/2/96
($3,055,934, Resolution Funding Corp., Zero Coupon, 1/15/30)..... 3,000,000 3,000,000
----------
Total Repurchase Agreements (Cost $3,000,000).................... 3,000,000
----------
</TABLE>
See notes to portfolio of investments.
54 - CALVERT RESPONSIBLY INVESTED BALANCED PORTFOLIO ANNUAL REPORT
<PAGE>
Acacia Capital Corporation
Calvert Responsibly Invested
Balanced Portfolio
Portfolio of Investments (Continued)
December 31, 1995
========
<TABLE>
<CAPTION>
U.S. Government Agencies and Principal
Instrumentalities (10.6%) Amount Value
- --------------------------------------------------------------------------------
<S> <C> <C>
Federal Home Loan Bank, 6.83%, 11/9/00................. $ 1,000,000 $1,001,300
Federal Home Loan Mortgage Corp., 5.47%, 1/5/96........ 3,000,000 2,998,177
Federal National Mortgage Assn., 5.49%, 10/2/03........ 1,000,000 994,600
Federal National Mortgage Assn., 6.85%, 9/12/05........ 2,500,000 2,573,300
Resolution Funding Corp., 8.625%, 1/15/21.............. 1,000,000 1,309,140
Small Business Administration, 8.05%, 6/1/12........... 869,101 925,854
U.S. Department of Veteran Affairs, 8.00%, 7/15/18..... 1,000,000 1,067,830
WNH Ltd Partnership, 9.40%, 10/01/99................... 705,000 764,509
----------
Total U.S. Government Agencies and Instrumentalities
(Cost $11,303,794).................................... 11,634,710
----------
U.S. Treasury (4.5%)
- --------------------------------------------------------------------------------
U.S. Treasury Bonds, 6.875%, 8/15/25................... 3,500,000 3,949,750
U.S. Treasury Notes, 5.875%, 11/15/05 1,000,000 1,022,650
----------
Total U.S. Treasury (Cost $4,935,525 )................ 4,972,400
----------
Other Debt (0.9%)
- --------------------------------------------------------------------------------
Chickasaw Nation, Oklahoma, 10.00%, 8/1/03............. 1,000,000 1,000,000
----------
Total Other Debt (Cost $1,000,000).................... 1,000,000
----------
Equity Securities (57.8%) Shares
- --------------------------------------------------------------------------------
Beverage Hotel and Leisure (1.9%)
Delta Corp............................................ 550,000 920,719
Regal Cinemas, Inc. *................................. 39,683 1,180,554
----------
2,101,273
----------
Biotechnology (1.1%)
Amgen, Inc. *......................................... 21,160 1,256,375
----------
1,256,375
----------
Business Equipment and Services (2.3%)
Hewlett Packard Co.................................... 16,000 1,340,000
Xerox Corp............................................ 8,850 1,212,450
----------
2,552,450
----------
</TABLE>
See notes to portfolio of investments.
ANNUAL REPORT CALVERT RESPONSIBLY INVESTED BALANCED PORTFOLIO - 55
<PAGE>
Acacia Capital Corporation
Calvert Responsibly Invested
Balanced Portfolio
Portfolio of Investments (Continued)
December 31, 1995
========
<TABLE>
<CAPTION>
Equity Securities (Cont'd) Shares Value
- --------------------------------------------------------------------------------
<S> <C> <C>
Communications (2.8%)
Ameritech Corp.......................................... 22,360 $1,319,240
DSC Communications Corp. *.............................. 47,860 1,764,838
----------
3,084,078
----------
Computers (6.0%)
3Com Corp. *............................................ 26,300 1,226,238
BMC Software, Inc. *.................................... 23,470 1,003,343
Computer Associates International, Inc.................. 21,950 1,248,406
Oracle Systems Corp. *.................................. 23,405 991,787
Seagate Technology *.................................... 17,700 840,750
Sun Microsystems, Inc. *................................ 28,820 1,314,913
----------
6,625,437
----------
Consumer Products (1.3%)
Gillette Co............................................. 26,700 1,391,738
----------
1,391,738
----------
Delivery (0.6%)
Federal Express Corp. *................................. 9,300 687,038
----------
687,038
----------
Electronics (5.5%)
Arrow Electronics, Inc. *............................... 22,090 952,631
E M C Corp. *........................................... 73,350 1,127,756
Linear Technology Corp.................................. 17,900 702,575
Micron Technology, Inc.................................. 19,600 776,634
Philips Electronics N.V................................. 28,100 1,008,088
Teradyne, Inc. (rights) *............................... 58,280 1,457,000
----------
6,024,684
----------
Entertainment (1.2%)
Walt Disney Co.......................................... 21,905 1,292,395
----------
1,292,395
----------
Financial Services (9.8%)
Advanta Corp., Class A.................................. 15,100 577,575
Bank New York, Inc...................................... 25,800 1,257,750
Bank of Boston Corp. (rights)........................... 32,915 1,522,319
Baybanks, Inc. (rights)................................. 15,845 1,556,771
Federal National Mortgage Assn.......................... 12,200 1,514,325
Green Tree Finl Corp.................................... 37,830 997,766
Umbono Investment Corp., Ltd. *......................... 1,156,540 3,331,140
----------
10,757,646
----------
</TABLE>
See notes to portfolio of investments.
56 - CALVERT RESPONSIBLY INVESTED BALANCED PORTFOLIO ANNUAL REPORT
<PAGE>
Acacia Capital Corporation
Calvert Responsibly Invested
Balanced Portfolio
Portfolio of Investments (Continued)
December 31, 1995
========
<TABLE>
<CAPTION>
Equity Securities (Cont'd) Shares Value
- --------------------------------------------------------------------------------
<S> <C> <C>
Food Services (2.5%)
Kellogg Co................................................. 17,150 $1,324,837
Sysco Corp. (rights)....................................... 44,300 1,439,750
----------
2,764,587
----------
Health Care (2.6%)
Healthcare Compare Corp. *................................. 33,650 1,463,775
Johnson & Johnson.......................................... 16,700 1,429,937
----------
2,893,712
----------
Industrial Products (2.8%)
Applied Materials, Inc. *.................................. 19,700 775,687
Briggs & Stratton Corp..................................... 15,600 676,650
Sigma Aldrich Corp......................................... 23,325 1,154,587
Wellman, Inc............................................... 20,200 459,550
----------
3,066,474
----------
Insurance (3.1%)
AFLAC, Inc................................................. 17,900 776,413
Allstate Corp.............................................. 31,550 1,297,494
American International Group, Inc.......................... 14,650 1,355,125
----------
3,429,032
----------
Machinery (1.3%)
AGCO Corp.................................................. 26,920 1,372,920
----------
1,372,920
----------
Manufacturing (1.0%)
Dover Corp................................................. 31,400 1,157,875
----------
1,157,875
----------
Media and Publishing (1.0%)
Scholastic Corp. *......................................... 13,665 1,062,454
----------
1,062,454
----------
Medical (3.4%)
Becton Dickinson & Co...................................... 22,700 1,702,500
Boston Scientific Corp. *.................................. 15,085 739,165
Medtronic, Inc............................................. 24,100 1,346,587
----------
3,788,252
----------
Merchandising (0.9%)
Albertson's, Inc........................................... 28,980 952,717
----------
952,717
----------
</TABLE>
See notes to portfolio of investments.
ANNUAL REPORT CALVERT RESPONSIBLY INVESTED BALANCED PORTFOLIO - 57
<PAGE>
Acacia Capital Corporation
Calvert Responsibly Invested
Balanced Portfolio
Portfolio of Investments (Continued)
December 31, 1995
========
<TABLE>
<CAPTION>
Equity Securities (Cont'd) Shares Value
- --------------------------------------------------------------------------------
<S> <C> <C>
Oil & Gas (0.7%)
Smith International, Inc. (rights) *................. 33,135 $ 778,673
------------
778,673
------------
Paper and Packaging (0.9%)
Chesapeake Corp. (rights)............................ 33,410 989,771
------------
989,771
------------
Pharmaceutical (1.4%)
Merck & Co., Inc..................................... 24,000 1,578,000
------------
1,578,000
------------
Retail (1.0%)
Consolidated Stores Corp. *.......................... 49,550 1,077,713
------------
1,077,713
------------
Telecommunications (2.7%)
Century Tel Enterprises, Inc. (rights)............... 52,045 1,652,429
Ericsson L M Tel, Co., Class B, ADR.................. 69,305 1,351,447
------------
3,003,876
------------
Total Equity Securities (Cost $53,795,240).......... 63,689,170
------------
TOTAL INVESTMENTS (99.2%)
(Cost $98,342,472)................................. $109,324,317
============
</TABLE>
Notes to Portfolio of Investments:
* Non-income producing.
** Optional tender features give these securities a shorter effective maturity
date.
Percentages shown represent the percentage of the investments to net assets.
Explanation of Guarantees:
AMBAC: American Municipal Bond Assurance Corporation
SA: Financial Security Advisor
MBIA: Municipal Bond Insurance Association
LOC: Letter of Credit
Abbreviations
VRDN: Variable Rate Demand Notes
58 - CALVERT RESPONSIBLY INVESTED BALANCED PORTFOLIO ANNUAL REPORT
<PAGE>
Acacia Capital Corporation
Calvert Responsibly Invested
Balanced Portfolio
Statement of Assets and Liabilities
December 31, 1995
========
<TABLE>
<CAPTION>
Assets
- --------------------------------------------------------------------------------
<S> <C>
Investments in securities, at value - see accompanying portfolio.. $109,324,317
Cash.............................................................. 529,881
Receivable for securities sold.................................... 1,118,254
Interest and dividends receivable................................. 619,319
Other assets...................................................... 1,146
------------
Total assets..................................................... 111,592,917
------------
Liabilities
- --------------------------------------------------------------------------------
Payable for securities purchased.................................. 1,285,855
Payable to Calvert Asset Management Company, Inc.................. 65,553
Accrued expenses and other liabilities............................ 4,296
------------
Total liabilities................................................ 1,355,704
------------
Net assets...................................................... $110,237,213
============
Net Assets Consist of:
- --------------------------------------------------------------------------------
Par value and paid-in capital applicable to 64,728,020 shares of
common stock outstanding; $1 par value, 70,000,000 shares
authorized....................................................... $ 98,074,699
Undistributed net investment income (loss)........................ 270,941
Accumulated net realized gains (losses) on investments and
foreign currencies............................................... 909,752
Net unrealized appreciation (depreciation) on investments and
assets and liabilities in foreign currencies..................... 10,981,821
------------
Net Assets...................................................... $110,237,213
============
Net Asset Value per Share....................................... $1.703
============
</TABLE>
See notes to financial statements.
ANNUAL REPORT CALVERT RESPONSIBLY INVESTED BALANCED PORTFOLIO - 59
<PAGE>
Acacia Capital Corporation
Calvert Responsibly Invested
Balanced Portfolio
Statement of Operations
Year Ended December 31, 1995
========
<TABLE>
<CAPTION>
Net Investment Income
- --------------------------------------------------------------------------------
<S> <C>
Investment Income
Interest income.................................................. $ 2,666,330
Dividend income (net of foreign taxes of $14,460)................ 724,043
-----------
Total investment income......................................... 3,390,373
-----------
Expenses
Investment advisory fee.......................................... 610,216
Directors' fees and expenses..................................... 11,987
Custodian fees................................................... 24,129
Registration fees................................................ 6,340
Reports to shareholders.......................................... 44,249
Professional fees................................................ 25,803
Miscellaneous.................................................... 3,565
-----------
Total expenses.................................................. 726,289
Fees paid indirectly............................................ (24,129)
-----------
Net expenses................................................... 702,160
-----------
Net Investment Income........................................ 2,688,213
-----------
Realized and Unrealized Gain (Loss) on Investments
- --------------------------------------------------------------------------------
Net realized gain (loss) on:
Securities....................................................... 9,151,962
Foreign currencies............................................... (20,556)
-----------
9,131,406
-----------
Change in unrealized appreciation or depreciation on:
Securities....................................................... 10,212,497
Assets and liabilities in foreign currencies..................... (24)
-----------
10,212,473
-----------
Net Realized and Unrealized Gain (Loss) on Investments.......... 19,343,879
-----------
Increase (Decrease) In Net Assets Resulting From Operations..... $22,032,092
===========
</TABLE>
See notes to financial statements.
60 - CALVERT RESPONSIBLY INVESTED BALANCED PORTFOLIO ANNUAL REPORT
<PAGE>
Acacia Capital Corporation
Calvert Responsibly Invested
Balanced Portfolio
Statement of Changes in Net Assets
Years Ended December 31, 1995 and 1994
==============
<TABLE>
<CAPTION>
Increase (Decrease) in Net Assets 1995 1994
===================================================================================
<S> <C> <C>
Operations
Net investment income.................................. $ 2,688,213 $ 2,063,409
Net realized gain (loss) on investments................ 9,131,406 (604,541)
Change in unrealized appreciation or depreciation...... 10,212,473 (3,394,657)
------------ -----------
Increase (Decrease) In Net Assets
Resulting From Operations............................ 22,032,092 (1,935,789)
------------ -----------
Distributions to shareholders from:
Net investment income.................................. (2,379,651) (2,067,159)
Net realized gain on investments....................... (7,467,802) --
------------ -----------
Total distributions................................... (9,847,453) (2,067,159)
------------ -----------
Capital share transactions
Shares sold............................................ 27,827,854 21,821,042
Reinvestment of distributions.......................... 9,847,453 2,067,159
Shares redeemed........................................ (6,215,413) (7,292,332)
------------ -----------
Total capital share transactions...................... 31,459,894 16,595,869
------------ -----------
Total Increase (Decrease) In Net Assets................. 43,644,533 12,592,921
Net Assets
===================================================================================
Beginning of year...................................... 66,592,680 53,999,759
------------ -----------
End of year (including undistributed net investment
income (loss) of $270,941 and $(22), respectively.)... $110,237,213 66,592,680
============ ===========
Capital Share Activity
===================================================================================
Shares sold............................................ 16,449,557 14,565,450
Reinvestment of distributions.......................... 5,782,412 1,425,675
Shares redeemed........................................ (3,747,516) (4,889,932)
------------ -----------
Total capital share activity.......................... 18,484,453 11,101,193
============ ===========
</TABLE>
See notes to financial statements.
ANNUAL REPORT CALVERT RESPONSIBLY INVESTED BALANCED PORTFOLIO - 61
<PAGE>
Notes to Financial Statements
Note A-Significant Accounting Policies
General: The Balanced Portfolio (the "Portfolio"), a series of Acacia Capital
Corporation's Calvert Responsibly Invested (CRI) Portfolios, is registered under
the Investment Company Act of 1940 as a non-diversified, open-end management
investment company. The Balanced Portfolio was formerly known as Calvert
Responsibly Invested Managed Growth Portfolio/Socially Responsible Series. The
operations of each series are accounted for separately. The shares of the
Portfolio are sold to affiliated and unaffiliated insurance companies for
allocation to certain of their variable separate accounts.
Security Valuation: Securities listed or traded on a national securities
exchange are valued at the last reported sale price. Unlisted securities and
listed securities for which the last sale price is not available are valued at
the most recent bid price or based on a yield equivalent obtained from the
securities' market maker. Short-term securities maturing within 60 days are
valued at amortized cost which approximates market. Foreign security prices,
furnished by quotation services in the security's local currency, are translated
using the current U. S. dollar exchange rate. Municipal securities are valued
utilizing the average of bid prices or at bid prices based on a matrix system
(which considers such factors as security prices, yields, maturities and
ratings) furnished by dealers through an independent pricing service. Other
securities and assets for which market quotations are not available or deemed
inappropriate are valued in good faith under the direction of the Board of
Directors.
Repurchase Agreements: The Portfolio 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. Dividend income is recorded on the ex-dividend date or,
in the case of dividends on certain foreign securities, as soon as the Portfolio
is informed of the ex-dividend date. Interest income, accretion of discount and
amortization of premium are recorded on an accrual basis.
Foreign Currency Transactions: The Portfolio's accounting records are
maintained in U. S. dollars. For purposes of valuation of investments, assets
and liabilities on each date of net asset value determination, the current
exchange rate is applied to foreign currencies for translation to U. S. dollars.
Security transactions, income and expenses are converted at the prevailing rate
of exchange on the date of the event. The changes in foreign exchange rates on
securities are included in the net realized and unrealized gain or loss on
securities.
Distributions to Shareholders: Distributions to shareholders are recorded by
the Portfolio on ex-dividend date. Dividends from net investment income are paid
annually. 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,
62 - CALVERT RESPONSIBLY INVESTED BALANCED PORTFOLIO ANNUAL REPORT
<PAGE>
accordingly, periodic reclassifications are made within the Portfolio's capital
accounts to reflect income and gains available for distribution under income tax
regulations.
Expense Offset Arrangements: The Portfolio has an arrangement with its
custodian bank whereby the custodian's fees are paid indirectly by credits
earned on the Portfolio'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 Portfolio 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 Directors of the
Portfolio. For its services, the Advisor receives a monthly fee based on an
annual rate of .70% of the Portfolio'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 Portfolio.
Each Director who is not affiliated with the Advisor receives a fee of $500 for
each Board meeting attended plus an annual fee of $2,000 for Directors not
serving on other Calvert Fund Boards. Director's fees are allocated to each of
the portfolios served.
Note C-Investment Activity
During the year, purchases and sales of investments, other than short-term
securities, were $151,831,684 and $125,197,142, respectively.
The cost of investments owned at December 31, 1995 for federal income tax
purposes was $98,398,834. Net unrealized appreciation aggregated $10,925,483, of
which $12,196,885 related to appreciated securities and $1,271,402 related to
depreciated securities.
Note D-Subsequent Event
The shareholders of CRI Bond Portfolio have been asked to vote (under the
instructions of the contract holders) on February 16, 1996 on a merger into the
Portfolio effected by a tax-free exchange of net assets of CRI Bond,
approximately $3.6 million, for shares of the Portfolio.
ANNUAL REPORT CALVERT RESPONSIBLY INVESTED BALANCED PORTFOLIO - 63
<PAGE>
Acacia Capital Corporation
Calvert Responsibly Invested
Balanced Portfolio
Financial Highlights
=============
<TABLE>
<CAPTION>
Year Year Year Year Year
Ended Ended Ended Ended Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1995 1994 1993 1992 1992
==============================================================================================
<S> <C> <C> <C> <C> <C>
Net asset value, beginning................. $ 1.440 $ 1.537 $ 1.465 $ 1.403 $ 1.249
======== ======= ======= ======= =======
Income from investment operations
- ---------------------------------
Net investment income..................... .050 .046 .045 .044 .050
Net realized and unrealized gain (loss)... .380 (.097) .072 .062 .154
-------- ------- ------- ------- -------
Total from investment operations......... .430 (.051) .117 .106 .204
-------- ------- ------- ------- -------
Distributions from
- ------------------
Net investment income..................... (.040) (.046) (.045) (.044) (.050)
Net realized gains........................ (.127) -- -- -- --
-------- ------- ------- ------- -------
Total distributions..................... (.167) (.046) (.045) (.044) (.050)
-------- ------- ------- ------- -------
Total increase (decrease) in
net asset value........................... .263 (.097) .072 .062 .154
-------- ------- ------- ------- -------
Net asset value, ending.................... $ 1.703 $ 1.440 $ 1.537 $ 1.465 $ 1.403
======== ======= ======= ======= =======
Total return............................... 29.87% (3.30%) 8.00% 7.61% 16.40%
======== ======= ======= ======= =======
Ratios to average net assets:
Net investment income..................... 3.08% 3.39% 3.69% 4.05% 4.49%
======== ======= ======= ======= =======
Total expenses +.......................... .83% -- -- -- --
======== ======= ======= ======= =======
Net expenses.............................. .81% .80% .81% .85% .85%
======== ======= ======= ======= =======
Portfolio turnover......................... 163% 43% 14% 15% 12%
======== ======= ======= ======= =======
Net assets, ending (in thousands).......... $110,237 $66,593 $54,000 $28,471 $14,946
======== ======= ======= ======= =======
Number of shares outstanding,
ending (in thousands)..................... 64,728 46,244 35,142 19,433 10,656
======== ======= ======= ======= =======
</TABLE>
+ Effective December 31, 1995, this ratio reflects total expenses before
reduction for fees paid indirectly; such reductions are included in the ratio of
net expenses.
64 - CALVERT RESPONSIBLY INVESTED BALANCED PORTFOLIO ANNUAL REPORT
