<PAGE>
CALVERT RESPONSIBLY INVESTED MONEY MARKET PORTFOLIO
Managed by Calvert Asset Management Company, Inc.
Dear Investor:
For the six-month period ended June 30, 1996, the economy advanced on a
moderate growth track as export sales rose along with strong business spending
for computers. Based on second-quarter estimates, Gross Domestic Product (GDP)
rose at an annualized rate of 4%, up from 2.2% annualized based on actual first-
quarter data. Because inflation appeared to remain in check, Federal Reserve
policymakers elected to keep rates steady after an initial cut in January in the
target rate for the Federal Funds rate (the rate that banks charge each other
for overnight loans) from 5.5% to 5.25%.
Performance and Strategy
Following the Fed's January rate cut, short-term interest rates exhibited
only moderate changes for the period covered by this report. The Portfolio's
annualized compound dividend yield for the 12 months ended June 30, 1996 was
5.08%, up from 5.02% one year ago. Currently, the Portfolio's average maturity
is 35 days.
Outlook
Our forecast for the remainder of the year calls for continued modest
economic growth. But with tight job markets and rising wages, we would not be
surprised to see the Federal Reserve raise short-term interest rates in the
coming months, possibly as early as August.
We appreciate your interest in the CRI Money Market Portfolio.
Sincerely,
/s/ Clifton S. Sorrell
Clifton S. Sorrell
President
July 31, 1996
SEMI-ANNUAL REPORT (UNAUDITED) CRI MONEY MARKET PORTFOLIO - 1
<PAGE>
Money Market Portfolio
Statement of Investments
June 30, 1996
<TABLE>
<CAPTION>
U.S. Government Agencies and Principal
Instrumentalities - 75.3% Amount Value
- --------------------------------------------------------------------------------------
<S> <C> <C>
Federal Farm Credit Bank, 5.21%, 8/7/96......................... $115,000 $ 114,384
Federal Farm Credit Bank, 5.29%, 8/27/96........................ 500,000 495,812
Federal Home Loan Bank Board, 4.95%, 7/18/96.................... 330,000 329,229
Federal Home Loan Bank Board, 5.20%, 7/1/96..................... 160,000 160,000
Federal Home Loan Bank Board, 5.33%, 9/11/96.................... 315,000 311,642
Federal Home Loan Bank Board, 5.33%, 9/12/96.................... 285,000 281,920
Federal Home Loan Bank Board, 5.32%, 9/18/96.................... 115,000 113,657
Federal Home Loan Mortgage Corp., 5.17%, 7/16/96................ 165,000 164,645
Federal Home Loan Mortgage Corp., 5.21%, 7/9/96................. 170,000 169,803
Federal Home Loan Mortgage Corp., 5.29%, 8/12/96................ 300,000 298,148
Federal Home Loan Mortgage Corp., 5.29%, 8/20/96................ 233,000 231,288
Federal Home Loan Mortgage Corp., 5.34%, 9/5/96................. 84,000 83,178
Federal National Mortgage Assn., 5.27%, 7/30/96................. 280,000 278,811
Federal National Mortgage Assn., 5.17%, 8/5/96.................. 175,000 174,120
Federal National Mortgage Assn., 5.21%, 8/6/96.................. 210,000 208,906
Federal National Mortgage Assn., 5.29%, 8/21/96................. 100,000 99,251
Federal National Mortgage Assn., 5.32%, 9/5/96.................. 120,000 118,830
Federal National Mortgage Assn., 5.21%, 7/12/96................. 120,000 119,809
Federal National Mortgage Assn., 5.17%, 7/24/96................. 325,000 323,926
----------
Total U.S. Government Agencies and Instrumentalities
(Cost $4,077,359).......................................... 4,077,359
----------
Municipal Obligations - 19.1%
- --------------------------------------------------------------------------------------
Alabama State Industrial Development Authority VRDN, 5.60%,
5/1/10, LOC: First Alabama *................................. 140,000 140,000
Alabama State Industrial Development Authority VRDN, 5.70%,
12/1/19, LOC: Chemical Bank *................................ 140,000 140,000
Gardena, California Certificates of Participation VRDN, 5.95%,
7/1/25, LOC: Dai-Ichi Kangyo Bank *.......................... 140,000 140,000
Iowa Financial Authority Economic Development Revenue VRDN,
5.60%, 3/1/11, LOC: Rabo Bank Nederland *.................... 150,000 150,000
Mahoning County, Ohio VRDN, 5.94%,
11/1/98, LOC: PNC Bank *..................................... 125,000 125,000
Mississippi Business Financial Corp. VRDN, 5.70%,
6/1/10, LOC: National Bank of Detroit *...................... 140,000 140,000
San Bernardino County, California VRDN, 5.55%,
7/1/16, LOC: Canadian Imperial Bank *........................ 200,000 200,000
----------
Total Municipal Obligations (Cost $1,035,000).............. 1,035,000
----------
</TABLE>
2 - CRI MONEY MARKET PORTFOLIO SEMI-ANNUAL REPORT (UNAUDITED)
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL
CORPORATE DEBT - 2.6% AMOUNT VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
Aspen Institute, Inc. VRDN, 5.67%,
12/1/04, LOC: First National Bank of Maryland *.......... $140,000 $ 140,000
----------
Total Corporate Debt (Cost $140,000).................... 140,000
----------
MORTGAGE BACKED SECURITIES - 2.6%
- --------------------------------------------------------------------------------
Fed One Dayton VRDN, 6.38%, 8/1/09, LOC: Bank One Ohio *.. 140,000 140,000
----------
Total Mortgage Backed Securities (Cost $140,000)........ 140,000
----------
TOTAL INVESTMENTS (Cost $5,392,359) - 99.6%.......... 5,392,359
Other assets and liabilities, net - 0.4%............. 21,617
----------
NET ASSETS - 100%.................................... $5,413,976
==========
</TABLE>
* Optional tender features give these securities a shorter effective maturity
date.
Explanation of Guarantees:
LOC: Letter of Credit
Abbreviations:
VRDN: Variable Rate Demand Notes
See notes to financial statements.
SEMI-ANNUAL REPORT (UNAUDITED) CRI MONEY MARKET PORTFOLIO - 3
<PAGE>
MONEY MARKET PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1996
<TABLE>
<CAPTION>
ASSETS
- --------------------------------------------------------------------------------
<S> <C>
Investments in securities, at value............................ $5,392,359
Cash........................................................... 19,996
Interest receivable............................................ 5,739
Other assets................................................... 598
----------
Total assets................................................. 5,418,692
----------
LIABILITIES
- --------------------------------------------------------------------------------
Payable to Calvert Asset Management Company, Inc............... 2,087
Income distribution payable.................................... 2,269
Accrued expenses and other liabilities......................... 360
----------
Total liabilities............................................ 4,716
----------
Net assets................................................ $5,413,976
==========
NET ASSETS CONSIST OF:
- --------------------------------------------------------------------------------
Par value and paid-in capital applicable to 5,417,474 shares of
common stock outstanding; $1 par value, 9,000,000 shares
authorized .................................................. $5,412,898
Undistributed net investment income (loss)..................... 778
Accumulated net realized gains (losses) on investments......... 300
----------
NET ASSETS................................................ $5,413,976
==========
NET ASSET VALUE PER SHARE................................. $ 1.00
==========
</TABLE>
See notes to financial statements.
4 - CRI MONEY MARKET PORTFOLIO SEMI-ANNUAL REPORT (UNAUDITED)
<PAGE>
MONEY MARKET PORTFOLIO
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 1996
<TABLE>
<CAPTION>
NET INVESTMENT INCOME
- -----------------------------------------------
<S> <C>
Investment Income
Interest income..................... $120,493
--------
Total investment income............ 120,493
--------
Expenses
Investment advisory fee............. 11,130
Directors' fees and expenses........ 162
Custodian fees...................... 2,830
Registration fees................... 288
Reports to shareholders............. 397
Miscellaneous....................... 326
--------
Total expenses..................... 15,133
Fees paid indirectly............... (2,830)
--------
Net expenses...................... 12,303
--------
NET INVESTMENT INCOME........... 108,190
--------
REALIZED GAIN (LOSS) ON INVESTMENTS
- -----------------------------------------------
Net realized gain (loss)............. 170
--------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS.......... $108,360
========
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT (UNAUDITED) CRI MONEY MARKET PORTFOLIO - 5
<PAGE>
MONEY MARKET PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS YEAR ENDED
ENDED DECEMBER 31,
Increase (Decrease) in Net Assets JUNE 30, 1996 1995
- ---------------------------------------------------------------------------------------------
<S> <C> <C>
Operations
Net investment income..................................... $ 108,190 $ 288,653
Net realized gain (loss).................................. 170 150
----------- ------------
Increase (Decrease) in Net Assets
Resulting From Operations.............................. 108,360 288,803
----------- ------------
Distributions to shareholders from
Net investment income..................................... (107,811) (288,254)
----------- ------------
Capital share transactions
Shares sold............................................... 7,018,144 10,858,696
Reinvestment of distributions............................. 105,541 266,798
Shares redeemed........................................... (6,838,792) (12,476,524)
----------- ------------
Total capital share transactions....................... 284,893 (1,351,030)
----------- ------------
Total Increase (Decrease)
in Net Assets................................................ 285,442 (1,350,481)
Net Assets
- ---------------------------------------------------------------------------------------------
Beginning of period....................................... 5,128,534 6,479,015
----------- ------------
End of period (including undistributed net investment
income of $778 and $399, respectively)................. $ 5,413,976 $ 5,128,534
=========== ============
Capital Share Activity
- ---------------------------------------------------------------------------------------------
Shares sold............................................... 7,018,144 10,858,696
Reinvestment of distributions............................. 105,541 266,798
Shares redeemed........................................... (6,838,792) (12,476,524)
----------- ------------
Total capital share activity........................... 284,893 (1,351,030)
=========== ============
</TABLE>
See notes to financial statements.
6 - CRI MONEY MARKET PORTFOLIO SEMI-ANNUAL REPORT (UNAUDITED)
<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 are accrued daily and paid monthly.
Distributions from net realized capital gains, if any, are paid at least
annually. Distributions are determined in accordance with income tax regulations
which may differ from generally accepted accounting principles, accordingly,
periodic reclassifications are made within the 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.
SEMI-ANNUAL REPORT (UNAUDITED) CRI 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 June 30, 1996 was substantially the same for
federal income tax and financial reporting purposes.
8 - CRI MONEY MARKET PORTFOLIO SEMI-ANNUAL REPORT (UNAUDITED)
<PAGE>
Money Market Portfolio
Financial Highlights
<TABLE>
<CAPTION>
Periods Ended
--------------------------------
June 30, December 31,
1996 1995 1994
- -------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning......................... $ 1.00 $ 1.00 $ 1.00
====== ====== ======
Income from investment operations
Net investment income........................... .024 .055 .039
Net realized gain (loss)........................ -- -- --
------ ------ ------
Total from investment operations............. .024 .055 .039
------ ------ ------
Distributions from
Net investment income........................... (.024) (.055) (.039)
------ ------ ------
Total increase (decrease) in net asset value....... -- -- --
------ ------ ------
Net asset value, ending............................ $ 1.00 $ 1.00 $ 1.00
====== ====== ======
Total return*...................................... 2.44% 5.37% 3.96%
====== ====== ======
Ratios to average net assets:
Net investment income........................... 4.84%(a) 5.23% 3.91%
====== ====== ======
Total expenses +................................ .68%(a) .66% --
====== ====== ======
Net expenses.................................... .55%(a) .59% .45%
====== ====== ======
Expenses reimbursed............................. -- -- .36%
====== ====== ======
Net assets, ending (in thousands).................. $5,414 $5,129 $6,479
====== ====== ======
Number of shares outstanding,
ending (in thousands)........................... 5,417 5,133 6,484
====== ====== ======
</TABLE>
<TABLE>
<CAPTION>
Periods Ended
--------------------
December 31,
1993 1992**
- -------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value, beginning......................... $ 1.00 $ 1.00
====== ======
Income from investment operations
Net investment income........................... .031 .009
Net realized gain (loss)........................ -- --
------ ------
Total from investment operations............. .031 .009
------ ------
Distributions from
Net investment income........................... (.031) (.009)
------ ------
Total increase (decrease) in net asset value....... -- --
------ ------
Net asset value, ending............................ $ 1.00 $ 1.00
====== ======
Total return*...................................... 3.09% 2.11%(a)
====== ======
Ratios to average net assets:
Net investment income........................... 3.07% 3.02%(a)
====== ======
Total expenses +................................ -- --
====== ======
Net expenses.................................... -- --
====== ======
Expenses reimbursed............................. .11% .85%(a)
====== ======
Net assets, ending (in thousands).................. $4,032 $1,795
====== ======
Number of shares outstanding,
ending (in thousands)........................... 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.
** From June 30, 1992, inception.
SEMI-ANNUAL REPORT (UNAUDITED) CRI MONEY MARKET PORTFOLIO - 9
<PAGE>
CALVERT RESPONSIBLY INVESTED STRATEGIC GROWTH PORTFOLIO
Managed by Portfolio Advisory Services, Inc.
Dear Investor:
We are extremely pleased to report performance results for the Calvert
Responsibly Invested (CRI) Strategic Growth Portfolio. For the six-month period
ended June 30, 1996, the Portfolio had a total return of 29.25%, significantly
outperforming the S&P 500 at 10.09% and the Russell 2000 at 10.36%.
Market Summary
Small-cap growth stocks have outperformed large cap stocks since early this
year because of strong fundamentals. A stable economy and stronger dollar favor
the small-cap sector's continued dominance over large-cap stocks. For many
large-cap stocks, prices have remained high relative to their growth, leaving
this group vulnerable to competition from higher interest rates in the bond
market.
Performance and Strategy
To take advantage of the equity bull market as it continues into its sixth
year, we are maintaining a portfolio of carefully selected growth-oriented
stocks. Our focus continues to be on small-capitalization growth stocks --
companies we believe can sustain a strong rate of growth over time.
Our stock selection discipline -- based on identifying U.S. companies with
solid underlying fundamentals -- produced excellent results during the period.
Remedy Corporation (OTC: RMDY) is a good example.
Calvert Responsibly Invested
Strategic Growth Portfolio
[GRAPH APPEARS HERE]
10 - CRI STRATEGIC GROWTH PORTFOLIO SEMI-ANNUAL REPORT (UNAUDITED)
<PAGE>
Remedy provides solutions to companies and individuals attempting to mix
mainframes, PCs, and software. Through its largely adaptable client/server
software, it provides Internet-based help desks and customer support management.
Its products let users view and download a firm's help desk and customer support
on a 24-hour basis. Remedy is the acknowledged worldwide leader of this market
sector, a niche currently experiencing strong growth both in the U.S. and
abroad.
The Portfolio purchased Remedy Corporation on January 10, 1996 for $32.38 per
share. As of June 30, 1996, the price had more than doubled to $73.00 per share.
Currently, the Portfolio's unrealized gain on the Remedy position is 125%. As of
June 30, 1996, Remedy represented approximately 3.0% of total assets in the
Calvert Responsibly Invested Strategic Growth Portfolio.
Outlook
Even with warning signs such as excessive speculation, the market uptrend has
continued. Our strategy is to remain invested in high-quality growth stocks to
take advantage of market strength. We are also carefully watching for signs of
increased risk. Under extraordinary situations of market risk, we will raise
cash levels in anticipation of redemptions and better opportunities.
Historically, presidential election years have been positive for the market.
There was an increase in market volatility during the six-month period in March
and June because of earnings preannouncement season. We used these downturns as
an opportunity to add attractively priced growth stocks with solid fundamentals
to the Portfolio.
We appreciate your investment in the CRI Strategic Growth Portfolio.
Sincerely,
/s/ Clifton S. Sorrell /s/ Cedd Moses
Clifton S. Sorrell Cedd Moses
President Portfolio Manager
July 31, 1996
SEMI-ANNUAL REPORT (UNAUDITED) CRI STRATEGIC GROWTH PORTFOLIO - 11
<PAGE>
Strategic Growth Portfolio
Statement of Investments
June 30, 1996
<TABLE>
<CAPTION>
Equity Securities - 99.1% Shares Value
- -----------------------------------------------------------
<S> <C> <C>
Computer - Services - 3.6%
Harbinger Corp. *........................ 2,300 $ 63,825
--------
63,825
--------
Electronics - Semiconductors - 11.9%
DSP Communications, Inc. *............... 1,200 61,650
Flextronics International, Ltd. *........ 500 13,125
Sanmina Corp. *.......................... 1,800 48,600
Uniphase Corp. *......................... 2,000 71,000
Zoran Corp. *............................ 1,000 19,250
--------
213,625
--------
Financial Services - 2.0%
Cityscape Financial Corp. *.............. 700 35,875
--------
35,875
--------
Medical - 6.7%
Compdent Corp. *......................... 1,200 55,800
Orthologic Corp. *....................... 3,400 43,350
Physician Sales & Services, Inc. *....... 900 21,825
--------
120,975
--------
Medical - Information Technology - 5.3%
Enterprise Systems, Inc.*................ 800 22,000
HCIA, Inc. *............................. 1,150 72,450
--------
94,450
--------
Office Equipment and Supplies - 2.6%
U. S. Office Products Co. *.............. 1,100 46,200
--------
46,200
--------
Pharmaceutical - 5.0%
Dura Pharmaceuticals, Inc. *............. 600 33,600
Jones Medical Industries, Inc. .......... 1,675 55,693
--------
89,293
--------
Retail - 4.6%
Gadzooks, Inc. *......................... 1,950 62,888
Wet Seal, Inc., Class A *............... 800 19,050
--------
81,938
--------
</TABLE>
12 - CRI STRATEGIC GROWTH PORTFOLIO SEMI-ANNUAL REPORT (UNAUDITED)
<PAGE>
<TABLE>
<CAPTION>
Equity Securities (Cont'd) Shares Value
- -------------------------------------------------------------------------
<S> <C> <C>
Software - Applications - 15.6%
Aspect Development, Inc. *....................... 300 $ 7,650
Clarify, Inc. *.................................. 900 44,550
Interference Corp., Class A *.................... 2,700 64,800
Objective Systems Integrators, Inc. *............ 900 32,850
Redmedy Corp. *.................................. 750 54,750
Siebel Systems, Inc. *........................... 700 18,689
Vantive Corp. *.................................. 1,700 56,950
----------
280,239
----------
Software - Database/Development Tools - 16.0%
Applix, Inc. *................................... 2,500 71,875
Arbor Software Corp. *........................... 700 41,825
Business Objects, S.A., ADR *.................... 1,200 48,300
Cognos, Inc. *................................... 1,500 34,500
Pure Software, Inc. *............................ 1,400 47,600
Rational Software Corp. *........................ 800 43,000
----------
287,100
----------
Software - Education/Entertainment - 3.4%
CBT Group Publishing Ltd., ADR *................. 1,300 60,125
----------
60,125
----------
Software - Systems - 10.8%
Citrix Systems, Inc. *........................... 1,800 68,400
McAfee Associates, Inc. *........................ 1,762 86,338
Novadigm, Inc. *................................. 2,600 38,890
----------
193,628
----------
Specialized Services - 0.6%
Veterinary Centers America, Inc. *............... 500 11,188
----------
11,188
----------
Telecommunications - 11.0%
P Com, Inc. *.................................... 1,100 34,650
Premiere Technologies, Inc. *.................... 500 15,750
Premisys Communications, Inc. *.................. 1,100 67,100
Sawtek, Inc. *................................... 1,300 44,850
Verilink Corp. *................................. 1,400 35,700
----------
198,050
----------
Total Equity Securities (Cost $1,457,743)...... 1,776,511
----------
TOTAL INVESTMENTS (Cost $1,457,743) - 99.1%... 1,776,511
Other assets and liabilities, net - 0.9%...... 16,258
----------
Net Assets - 100%............................. $1,792,769
==========
</TABLE>
*Non-income producing.
See notes to financial statements.
SEMI-ANNUAL REPORT (UNAUDITED) CRI STRATEGIC GROWTH PORTFOLIO - 13
<PAGE>
Strategic Growth Portfolio
Statement of Assets and Liabilities
June 30, 1996
<TABLE>
<CAPTION>
Assets
- ----------------------------------------------------------------------------------
<S> <C>
Investments in securities, at value................................... $1,776,511
Cash.................................................................. 77,798
Dividends receivable.................................................. 32
Other assets.......................................................... 181
----------
Total assets......................................................... 1,854,522
----------
Liabilities
- ----------------------------------------------------------------------------------
Payable for securities purchased...................................... 59,405
Payable to Calvert Asset Management Company, Inc. .................... 2,228
Accrued expenses and other liabilities................................ 120
----------
Total liabilities.................................................... 61,753
----------
Net assets.......................................................... $1,792,769
==========
Net Assets Consist of:
- ----------------------------------------------------------------------------------
Par value and paid-in capital applicable to 126,806 shares of common
stock outstanding; $1 par value, 5,000,000 shares authorized......... $1,335,749
Undistributed net investment income (loss)............................ (9,250)
Accumulated net realized gain (loss) on investments................... 147,502
Net unrealized appreciation (depreciation) on investments............. 318,768
----------
Net Assets.......................................................... $1,792,769
==========
Net Asset Value per Share........................................... $14.14
==========
</TABLE>
See notes to financial statements.
14 - CRI STRATEGIC GROWTH PORTFOLIO SEMI-ANNUAL REPORT (UNAUDITED)
<PAGE>
STRATEGIC GROWTH PORTFOLIO
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 1996
<TABLE>
<CAPTION>
NET INVESTMENT INCOME
- ---------------------------------------------------------------------
<S> <C>
Investment Income
Interest income.......................................... $ 2,974
Dividend income.......................................... 58
--------
Total investment income................................. 3,032
--------
Expenses
Investment advisory fee.................................. 11,031
Directors' fees and expenses............................. 43
Administrative fees...................................... 1,465
Custodian fees........................................... 5,207
Registration fees........................................ 547
Reports to shareholders.................................. 863
Professional fees........................................ 238
Miscellaneous............................................ 95
Reimbursement from Advisor............................... (1,465)
--------
Total expenses.......................................... 18,024
Fees paid indirectly.................................... (5,207)
--------
Net expenses........................................... 12,817
--------
NET INVESTMENT INCOME (LOSS)......................... (9,785)
--------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- ---------------------------------------------------------------------
Net realized gain (loss) on:
Securities............................................... 154,129
Options written.......................................... 1,369
Securities sold short.................................... 3,170
--------
158,668
Change in unrealized appreciation or depreciation......... 211,843
--------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS.......................................... 370,511
--------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............................... $360,726
========
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT (UNAUDITED) CRI STRATEGIC GROWTH PORTFOLIO - 15
<PAGE>
Strategic Growth Portfolio
Statements of Changes in Net Assets
<TABLE>
<CAPTION> March 1, 1995
Six Months (Inception) to
Ended December 31,
Increase (Decrease) in Net Assets June 30, 1996 1995
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C>
Operations
Net investment income (loss)....................................... ($9,785) $ 3,237
Net realized gain (loss)........................................... 158,668 (11,166)
Change in unrealized appreciation or depreciation ................. 211,843 106,925
---------- ----------
Increase (Decrease) in Net Assets
Resulting From Operations........................................ 360,726 98,996
---------- ----------
Distributions to shareholders from
Net investment income.............................................. --- (2,702)
---------- ----------
Capital share transactions
Shares sold....................................................... 421,615 1,272,662
Reinvestment of distributions..................................... --- 2,702
Shares redeemed................................................... (199,012) (162,218)
---------- ----------
Total capital share transactions............................... 222,603 1,113,146
---------- ----------
Total Increase (Decrease)
in Net Assets........................................................ 583,329 1,209,440
Net Assets
- -----------------------------------------------------------------------------------------------------------
Beginning of period................................................. 1,209,440 ---
---------- ----------
End of period (including undistributed net investment
income of ($9,250) and $535, respectively)........................ $1,792,769 $1,209,440
========== ==========
Capital Share Activity
- -----------------------------------------------------------------------------------------------------------
Shares sold......................................................... 31,876 126,452
Reinvestment of distributions....................................... ---- 247
Shares redeemed..................................................... (15,656) (16,113)
---------- ----------
Total capital share activity..................................... 16,220 110,586
========== ==========
</TABLE>
See notes to financial statements.
16 - CRI STRATEGIC GROWTH PORTFOLIO SEMI-ANNUAL REPORT (UNAUDITED)
<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 nondiversified, 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. 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. 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 and
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.
SEMI-ANNUAL REPORT (UNAUDITED) CRI STRATEGIC GROWTH PORTFOLIO - 17
<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 Administrative Services Company, an affiliate of the Advisor, provides
administrative services to the Portfolio for an annual fee, payable monthly, of
.20% of the Portfolio's annual average daily net assets. The Advisor voluntarily
reimbursed the Portfolio for administrative fees.
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 period, purchases and sales of investments, other than short-term
securities, were $1,751,555 and $1,079,683, respectively.
The cost of investments owned at June 30, 1996 was substantially the same for
federal income tax and financial reporting purposes. Net unrealized appreciation
aggregated $318,768, of which $374,989 related to appreciated securities and
$56,221 related to depreciated securities.
Net realized capital loss carryforward, for federal income tax purposes, of
$11,166 at December 31, 1995 may be utilized to offset current or future capital
gains until expiration in 2003.
The Portfolio's only transaction in written call options was the expiration of 2
contracts, premium value of $1,369, which had been open at December 31, 1995.
18 - CRI STRATEGIC GROWTH PORTFOLIO SEMI-ANNUAL REPORT (UNAUDITED)
<PAGE>
STRATEGIC GROWTH PORTFOLIO
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
PERIODS ENDED
-----------------------
JUNE 30, DECEMBER 31,
1996 1995**
- -------------------------------------------------------------------------------
<S> <C> <C>
Net asset value, beginning............................ $10.94 $10.00
====== ======
Income from investment operations
Net investment income............................... (.08) .25
Net realized and unrealized gain (loss)............. 3.28 .93
------ ------
Total from investment operations.................. 3.20 1.18
------ ------
Distributions from
Net investment income............................... -- (.24)
------ ------
Total distributions............................... -- (.24)
------ ------
Total increase (decrease) in net asset value.......... 3.20 .94
------ ------
Net asset value, ending............................... $14.14 $10.94
====== ======
Total return*......................................... 29.25% 9.65%
====== ======
Ratios to average net assets:
Net investment income............................... (1.34%)(a) .43%(a)
====== ======
Total expenses+..................................... 2.46%(a) 2.17%(a)
====== ======
Net expenses........................................ 1.75%(a) 1.64%(a)
====== ======
Expenses reimbursed................................. .20%(a) .20%(a)
====== ======
Portfolio turnover.................................... 86% 223%
====== ======
Net assets, ending (in thousands)..................... $1,793 $1,209
====== ======
Number of shares outstanding, ending (in thousands)... 127 111
====== ======
</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.
** From March 1, 1995, inception.
SEMI-ANNUAL REPORT (UNAUDITED) CRI STRATEGIC GROWTH PORTFOLIO - 19
<PAGE>
CALVERT RESPONSIBLY INVESTED
CAPITAL ACCUMULATION PORTFOLIO
Managed by Apodaca-Johnston, Brown Capital Management, and
Fortaleza Asset Management
Dear Investor:
For the six-month period ended June 30, 1996, the economy advanced on a
moderate growth track as export sales rose along with strong business spending
for computers. Based on second-quarter estimates, Gross Domestic Product (GDP)
rose at an annualized rate of 4%, up from 2.2% annualized based on actual first-
quarter data. Because inflation appeared to remain in check, Federal Reserve
policymakers elected to keep rates steady after an initial cut in January in the
target Federal Funds rate (the rate that banks charge each other for overnight
loans) from 5.5% to 5.25%.
MARKET SUMMARY
For the period, stocks outperformed bonds. But both reacted negatively to
news that jobs were enjoying a quiet explosion -- around 1.3 million were added
during the time frame. Investors feared that faster job growth could bring
higher inflation and force the Fed to raise short-term interest rates.
Stocks mounted an impressive advance, with the Dow Jones Industrial Average
gaining 10.5%. Small-cap stocks outperformed large-cap stocks, as investors
returned to investing in growth companies with strong fundamentals. At the same
time, investors committed some $100 billion to equity mutual funds following the
Dow's peak in mid-February, showing they had not lost their appetite for stocks.
Calvert Responsibly Invested
Capital Accumulation Portfolio
Comparison of change in value of a
hypothetical $10,000 investment.
[GRAPH APPEARS HERE]
Average Annual Total Return
(period ending 6/30/95)
1 Year 21.28% Life of Fund 12.59% (7/91)
*New sub-advisors assumed management of the
Portfolio effective December 1994.
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.
20 - CRI CAPITAL ACCUMULATION PORTFOLIO SEMI-ANNUAL REPORT (UNAUDITED)
<PAGE>
PERFORMANCE AND STRATEGY
The return of 8.79% for the Capital Accumulation Portfolio for the six-month
period ending June 30, 1996 slightly underperformed the 9.22% return for the S&P
Mid-Cap Index.
For the first half of the year, the Portfolio focused on the stocks in the
technology, healthcare, retail, and financial services sectors. Our technology
sector holdings most often included companies specializing in networking,
telecommunications equipment, and client/server software.
We continue to emphasize companies that focus on efficiency. Corporate America
remains committed to looking for ways to cut costs and increase productivity.
OUTLOOK
Since volatility often increases late in a market cycle, the increasing stock
market turbulence may mean the nearly six-year bull market is finally coming to
an end. Still, for the period covered by this report, we should remember that
the Dow's recent six-month advance of 10.5% is about equal to the returns that
stocks have delivered in an average year over a period of decades.
Our forecast for the remainder of the year calls for continued modest economic
growth. But with tight job markets and rising wages, we would not be surprised
to see the Federal Reserve raise short-term interest rates in the coming months,
possibly as early as August.
Sincerely,
/s/ Clifton S. Sorrel
Clifton S. Sorrell
President
July 31, 1996
SEMI-ANNUAL REPORT (UNAUDITED) CRI CAPITAL ACCUMULATION PORTFOLIO - 21
<PAGE>
CAPITAL ACCUMULATION PORTFOLIO
STATEMENT OF INVESTMENTS
JUNE 30, 1996
<TABLE>
<CAPTION>
Equity Securities - 93.9% Shares Value
- ---------------------------------------------------------------
<S> <C> <C>
AIRLINE - 0.3%
Reno Air, Inc. * ............................ 4,000 $ 45,500
-------
45,500
-------
BIOTECHNOLOGY - 1.3%
Amgen, Inc. * ............................... 2,200 118,800
Ibah, Inc. * ................................ 6,200 49,600
Neurex Corp. * .............................. 2,500 54,687
-------
223,087
-------
BUSINESS SERVICES - 2.5%
Analytical Surveys, Inc. * .................. 2,400 53,400
May & Speh, Inc. * .......................... 5,000 78,750
Physician Support Systems, Inc. * ........... 9,400 212,675
Profit Recovery Group International, Inc. * . 4,000 81,000
-------
425,825
-------
CHEMICALS - 0.5%
Minerals Technologies, Inc. ................. 2,600 89,050
-------
89,050
-------
COMMUNICATIONS - 5.1%
Cisco Systems, Inc. * ....................... 3,950 223,669
Digital Systems International, Inc. * ....... 4,300 65,037
DSC Communications Corp. * .................. 4,000 120,500
Harmonic Lightwaves, Inc. * ................. 5,100 116,025
Hummingbird Communications, Ltd. * .......... 2,000 61,000
Remec, Inc. * ............................... 4,000 71,000
Teltrend, Inc. * ............................ 1,700 65,875
Videoserver, Inc. * ......................... 2,300 89,700
Voice Control Systems, Inc. * ............... 5,100 46,537
-------
859,343
-------
COMPUTER - EQUIPMENT AND SERVICES - 0.9%
Individual, Inc. * .......................... 5,000 82,500
Lumisys, Inc. * ............................. 4,300 69,875
-------
152,375
-------
COMPUTER - SOFTWARE - 13.2%
Act Networks, Inc. * ........................ 2,500 81,250
Adept Technology, Inc. * .................... 4,200 58,800
Comshare, Inc. * ............................ 3,200 99,200
Cotelligent Group, Inc. * ................... 4,000 69,000
Cylink Corp. * .............................. 4,100 70,725
Equifax, Inc. ............................... 8,600 225,750
GT Interactive Software Corp. * ............. 2,000 33,500
</TABLE>
22 - CRI CAPITAL ACCUMULATION PORTFOLIO SEMI-ANNUAL REPORT (UPDATED)
<PAGE>
<TABLE>
<CAPTION>
Equity Securities (Cont'd) Shares Value
- -----------------------------------------------------------
<S> <C> <C>
Computer - Software (Cont'd)
Hyperion Software Corp. *............. 8,600 $106,425
IDX Systems Corp. *.................. 1,500 58,500
Imnet Systems, Inc. *................ 3,000 91,500
Legato Systems, Inc. *................ 1,800 99,000
McAfee Associates, Inc. *............. 2,700 132,300
Microsoft Corp. *..................... 800 96,100
Number Nine Visual Technology *...... 900 7,087
Open Text Corp. *..................... 9,000 93,375
Quickturn Design Systems, Inc. *...... 5,100 73,950
Siebel Systems, Inc. *................ 3,100 77,352
Software 2000, Inc. *................. 5,000 80,625
Sterling Software, Inc. *............. 2,700 207,900
Structural Dynamics Research Corp. *.. 2,000 44,000
Systemsoft Corp. *.................... 5,700 267,900
Unify Corp. *......................... 4,000 50,000
Viasoft, Inc. *...................... 1,500 96,937
----------
2,221,176
----------
Computer - Systems - 5.4%
Amisys Managed Care Systems, Inc. *... 2,500 64,375
Applied Microsystems Corp. *.......... 2,500 43,750
Bay Networks, Inc. *.................. 6,600 169,950
Gandalf Technologies, Inc. *.......... 4,300 34,400
Meridian Data, Inc. *................. 7,300 64,787
Oracle Corp. *........................ 3,937 155,265
Powercerv Corp. *..................... 6,600 80,850
Spacetex IMC Corp. *.................. 4,000 60,000
Sync Research, Inc. *................ 2,600 37,050
Vanstar Corp. *....................... 4,000 67,000
Verifone, Inc. *..................... 3,000 126,750
----------
904,177
----------
Consumer Products - 1.2%
Newell Co............................. 6,600 202,125
----------
202,125
----------
Cosmetics - 0.6%
Penederm, Inc. *...................... 5,600 95,200
----------
95,200
----------
Dental - 0.3%
United Dental Care, Inc. *............ 1,000 42,250
----------
42,250
----------
Education - 0.5%
Devry, Inc. *......................... 2,000 90,000
----------
90,000
----------
</TABLE>
SEMI-ANNUAL REPORT (UNAUDITED) CRI CAPITAL ACCUMULATION PORTFOLIO - 23
<PAGE>
<TABLE>
<CAPTION>
EQUITY SECURITIES (CONT'D) SHARES VALUE
- --------------------------------------------------------------------
<S> <C> <C>
ELECTRICAL EQUIPMENT - 1.1%
Boca Research, Inc.*.......................... 2,300 $ 41,975
Checkpoint Systems, Inc.*..................... 4,000 137,500
--------
179,475
--------
ELECTRONICS - INSTRUMENTS - 1.3%
Checkfree Corp.*.............................. 4,000 79,500
General Scanning, Inc.*....................... 4,800 81,600
Itron, Inc.*.................................. 1,800 51,075
--------
212,175
--------
ELECTRONICS - DEFENSE - 0.3%
Jacobs Engineering Group, Inc.*............... 2,000 52,750
--------
52,750
--------
ELECTRONICS - SEMICONDUCTORS - 7.1%
Ariel Corp.*.................................. 7,500 80,625
Benchmarq Microelectronics, Inc.*............. 6,400 57,600
CFM Technologies, Inc.*....................... 3,500 35,331
DSP Communications, Inc.*..................... 2,900 148,987
Electrostar, Inc.*............................ 6,000 66,000
EMC Corp.*.................................... 7,300 135,963
Input/Output, Inc.*........................... 1,400 45,325
Sheldahl Co.*................................. 3,400 70,975
Solectron Corp.*.............................. 2,900 109,837
Tencor Instruments*........................... 2,000 37,750
Transwitch Corp.*............................. 6,400 84,800
Uniphase Corp.*............................... 4,400 156,200
Vishay Intertechnology, Inc................... 6,886 162,682
--------
1,192,075
--------
ENVIRONMENTAL SERVICES - 0.4%
Allied Waste Industries, Inc.*................ 8,000 71,000
--------
71,000
--------
FINANCIAL SERVICES - 4.4%
Chase Manhattan Corp.......................... 2,652 187,297
Glendale Federal Bank Federal Savings Bank*... 7,100 128,687
Green Tree Financial Corp..................... 6,550 204,687
T. Rowe Price Associates, Inc................. 6,900 212,175
--------
732,846
--------
HEALTH CARE - 5.2%
American Homepatient, Inc.*................... 2,000 88,500
American Oncology Research, Inc.*............. 5,000 108,750
CRA Managed Care, Inc.*....................... 2,000 89,500
First Commonwealth, Inc.*..................... 1,500 41,813
GRC International, Inc.*...................... 1,900 72,913
Health Care & Retirement Corp.*............... 4,950 117,563
NCS Healthcare, Inc., Class A*................ 2,700 81,675
Pall Corp..................................... 4,700 113,387
</TABLE>
24 - CRI CAPITAL ACCUMULATION PORTFOLIO SEMI-ANNUAL REPORT (UNAUDITED)
<PAGE>
<TABLE>
<CAPTION>
Equity Securities (Cont'd) Shares Value
- ------------------------------------------------------------
<S> <C> <C>
Health Care (Cont'd)
Renal Care Group, Inc. *.............. 1,800 $ 58,050
United Healthcare Corp................ 2,150 108,575
----------
880,726
----------
Insurance - 1.7%
AFLAC, Inc............................ 5,000 149,375
American Bankers Ins Group, Inc....... 3,000 130,875
----------
280,250
----------
Leisure - 1.2%
Carnival Corp., Class A............... 6,700 193,463
----------
193,463
----------
Machinery - 0.1%
Ionics, Inc. *........................ 400 18,800
----------
18,800
----------
Medical - 12.7%
Aksys, Ltd. *......................... 5,500 83,225
Alkermes, Inc. *...................... 6,300 77,175
ALZA Corp. *.......................... 2,300 62,963
Arterial Vascular Engineer, Inc. *.... 2,500 90,625
Cardinal Health, Inc.................. 3,000 216,375
Cardiovascular Dynamics, Inc. *....... 3,400 41,650
Compdent Corp. *...................... 1,700 79,050
Cytyc Corp. *......................... 3,000 77,625
Hologic, Inc. *....................... 2,400 106,200
ICU Medical, Inc. *................... 2,800 38,500
Inhale Therapeutic Systems *......... 7,000 129,500
Intelligent Medical Imaging, Inc. *... 3,700 54,575
Invacare Corp......................... 1,000 23,500
Iridex Corp. *........................ 5,100 76,500
Lunar Corp. *......................... 1,600 55,200
Mecon, Inc. *........................ 6,200 140,275
Medquist, Inc. *...................... 5,200 94,250
Myriad Genetics, Inc. *............... 2,000 50,000
North American Vaccine, Inc. *........ 4,000 73,000
Northfield Laboratories, Inc. *....... 2,000 29,500
Orthologic Corp. *.................... 5,400 68,850
Pediatrix Medical Group *............ 1,200 58,200
QLT Phototherapeutics *.............. 3,900 72,150
Scherer R.P. Corp. *.................. 3,700 167,887
Sofamor/Danek Group, Inc. *........... 3,000 83,250
Zygo Corp. *.......................... 1,700 74,375
----------
2,124,400
----------
Office Equipment and Supplies - 1.2%
Corporate Express, Inc. *............. 2,500 100,000
U.S. Office Products Co. *............ 2,500 105,000
----------
205,000
----------
</TABLE>
SEMI-ANNUAL REPORT (UNAUDITED) CRI CAPITAL ACCUMULATION PORTFOLIO - 25
<PAGE>
<TABLE>
<CAPTION>
Equity Securities (Cont'd) Shares Value
- -------------------------------------------------------------
<S> <C> <C>
OIL & GAS - 2.7%
Belden & Blake Corp. *................... 4,500 $ 93,375
Dawson Production Services, Inc. *....... 5,300 60,950
MCN Corp. ............................... 6,600 160,875
Varco International, Inc. *.............. 7,500 135,938
----------
451,138
----------
PHARMACEUTICAL - 2.3%
Agouron Pharmaceuticals, Inc. *.......... 1,000 39,000
Columbia Labs, Inc. *.................... 5,800 86,275
Immulogic Pharmaceutical Corp. *......... 7,200 65,700
Medicis Pharmaceutical Corp., Class A *.. 2,400 99,000
Sequus Pharmaceuticals, Inc. *........... 4,900 97,464
----------
387,439
----------
PROPERTY MANAGEMENT - 0.8%
Rouse Co................................. 5,000 129,375
----------
129,375
----------
REAL ESTATE - 1.9%
General Growth Properties, Inc. ......... 6,650 160,431
Post Properties, Inc. ................... 4,700 166,263
----------
326,694
----------
RESTAURANTS - 3.4%
Applebees International, Inc. ........... 2,000 64,250
Buffets, Inc. *.......................... 5,000 61,250
Cheesecake Factory, Inc. *............... 8,000 220,000
CKE Restaurants, Inc. ................... 5,300 135,150
Papa Johns International, Inc. *......... 1,100 53,625
Rainforest Cafe, Inc. *.................. 600 30,000
----------
564,275
----------
RETAIL - 10.8%
Autozone, Inc. *......................... 7,100 246,725
Buckle, Inc. *........................... 2,000 68,500
Casey General Stores, Inc. .............. 7,700 153,038
Cutter & Buck, Inc. *.................... 4,500 54,563
Dollar General Corp. .................... 7,925 231,806
Gadzooks, Inc. *......................... 3,750 120,938
Home Depot, Inc. ........................ 3,100 167,400
Movie Gallery, Inc. *.................... 3,000 63,000
Noodle Kidoodle, Inc. *.................. 6,000 45,750
Pacific Sunwear of California *.......... 4,000 94,000
Revco D.S., Inc. *....................... 5,300 126,538
Tuesday Morning Corp. *.................. 5,200 69,550
Vans, Inc. *............................. 4,500 76,500
West Marine, Inc. *...................... 1,000 71,500
Wet Seal, Inc., Class A *................ 4,500 107,156
Whole Foods Market, Inc. *............... 4,500 119,250
----------
1,816,214
----------
</TABLE>
26 - CRI CAPITAL ACCUMULATION PORTFOLIO SEMI-ANNUAL REPORT (UNAUDITED)
<PAGE>
<TABLE>
<CAPTION>
Equity Securities (Cont'd) Shares Value
________________________________________________________________________
<S> <C> <C>
SPECIALIZED SERVICES - 0.2%
Veterinary Centers America, Inc. *............... 1,800 $ 40,275
-----------
40,275
-----------
TELECOMMUNICATIONS - 2.3%
Brightpoint, Inc. *.............................. 3,600 77,400
EIS International, Inc. *........................ 5,700 145,350
ICT Group, Inc. *................................ 1,600 30,788
P Com, Inc. *................................... 3,400 107,100
Verilink Corp. *................................. 200 5,100
Westell Technologies, Class A *.................. 700 27,388
-----------
393,126
-----------
TEXTILES - 1.0%
Marisa Christina, Inc. *......................... 5,100 102,000
Quiksilver, Inc. *............................... 2,000 60,000
-----------
162,000
-----------
Total Equity Securities (Cost $13,614,238)..... 15,763,604
-----------
TOTAL INVESTMENTS (Cost $13,614,238) - 93.9%.. 15,763,604
Other assets and liabilities, net - 6.1%...... 1,029,094
-----------
NET ASSETS - 100%............................. $16,792,698
===========
</TABLE>
* Non-income producing.
See notes to financial statements.
SEMI-ANNUAL REPORT (UNAUDITED) CRI CAPITAL ACCUMULATION PORTFOLIO - 27
<PAGE>
<TABLE>
<CAPTION>
CAPITAL ACCUMULATION PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1996
ASSETS
===================================================================================
<S> <C>
Investments in securities, at value................................... $15,763,604
Cash.................................................................. 1,020,641
Receivable for securities sold........................................ 120,534
Receivable for shares purchased....................................... 123,872
Interest and dividends receivable..................................... 3,780
Other assets.......................................................... 1,047
-----------
Total assets..... .................................................. 17,033,478
-----------
LIABILITIES
===================================================================================
Payable for securities purchased...................................... 227,049
Payable to Calvert Asset Management Company, Inc...................... 12,611
Accrued expenses and other liabilities................................ 1,120
-----------
Total liabilities................................................... 240,780
-----------
Net assets........................................................ $16,792,698
===========
NET ASSETS CONSIST OF:
===================================================================================
Par value and paid-in capital applicable to 688,511 shares of common
stock outstanding; $1 par value, 6,000,000 shares authorized......... $13,840,098
Undistributed net investment income (loss)............................ (44,862)
Accumulated net realized gains (losses) on investments................ 848,096
Net unrealized appreciation (depreciation) on investments............. 2,149,366
-----------
NET ASSETS.......................................................... $16,792,698
===========
NET ASSET VALUE PER SHARE........................................... $24.39
===========
</TABLE>
See notes to financial statements.
28 - CRI CAPITAL ACCUMULATION PORTFOLIO SEMI-ANNUAL REPORT (UNAUDITED)
<PAGE>
<TABLE>
<CAPTION>
CAPITAL ACCUMULATION PORTFOLIO
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 1996
NET INVESTMENT INCOME
========================================================================
<S> <C>
Investment Income
Interest income....................................... $ 4,268
Dividend income....................................... 21,544
----------
Total investment income............................. 25,812
----------
Expenses
Investment advisory fee............................... 54,620
Directors' fees and expenses.......................... 380
Administrative fees................................... 6,828
Custodian fees........................................ 27,056
Registration fees..................................... 514
Reports to shareholders............................... (1,377)
Professional fees..................................... 9,142
Miscellaneous......................................... 567
----------
Total expenses...................................... 97,730
Fees paid indirectly................................ (27,056)
----------
Net expenses...................................... 70,674
----------
NET INVESTMENT INCOME (LOSS).................... (44,862)
----------
REALIZED AND UNREALIZED GAIN (Loss)
ON INVESTMENTS
========================================================================
Net realized gain (loss)................................ 828,027
Change in unrealized appreciation or depreciation....... 668,832
----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS........................................ 1,496,859
----------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............................. $1,451,997
==========
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT (UNAUDITED) CRI CAPITAL ACCUMULATION PORTFOLIO - 29
<PAGE>
Capital Accumulation Portfolio
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
Increase (Decrease) in Net Assets June 30, 1996 December 31, 1995
- ---------------------------------------------------------------------------------------------
<S> <C> <C>
Operations
Net investment income (loss)........................... $ (44,862) $ (58,120)
Net realized gain (loss)............................... 828,027 805,204
Change in unrealized appreciation or depreciation...... 668,832 1,398,962
----------- -----------
Increase (Decrease) in Net Assets
Resulting From Operations.............................. 1,451,997 2,146,046
----------- -----------
Distributions to shareholders from
Net investment income.................................. -- (3,628)
Net realized gain on investments....................... -- (466,861)
----------- -----------
Total distributions................................... -- (470,489)
----------- -----------
Capital share transactions
Shares sold............................................ 5,721,942 2,445,856
Shares issued from merger (Note A)..................... 4,728,068
Reinvestment of distributions.......................... -- 470,489
Shares redeemed........................................ (4,044,588) (1,345,444)
----------- -----------
Total capital share transactions...................... 6,405,422 1,570,901
----------- -----------
Total Increase (Decrease)
in Net Assets........................................... 7,857,419 3,246,458
Net Assets
- ---------------------------------------------------------------------------------------------
Beginning of period.................................... 8,935,279 5,688,821
----------- -----------
End of period (including undistributed net investment
income of ($44,862) and $0, respectively)............. $16,792,698 $ 8,935,279
=========== ===========
Capital Share Activity
- ---------------------------------------------------------------------------------------------
Shares sold............................................ 238,292 112,840
Shares issued from merger (Note A)..................... 207,827
Reinvestment of distributions.......................... -- 20,976
Shares redeemed........................................ (156,071) (70,579)
----------- -----------
Total capital share activity.......................... 290,048 63,237
=========== ===========
</TABLE>
See notes to financial statements.
30 - CRI CAPITAL ACCUMULATION PORTFOLIO
SEMI-ANNUAL REPORT (UNAUDITED)
<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. 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.
On February 23, 1996, the net assets of CRI Equity Portfolio, approximately $4.7
million, were merged into the Portfolio. The merger was a tax-free exchange,
whereby shares of the Portfolio were issued to the former CRI Equity policy
holders.
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. 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 and
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.
SEMI-ANNUAL REPORT (UNAUDITED)
CRI CAPITAL ACCUMULATION PORTFOLIO -31
<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 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.
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 period, purchases and sales of investments, other than short-term
securities, were $13,312,792 and $7,119,108, respectively. Such transactions are
exclusive of the effects of the merger of CRI Equity.
The cost of investments owned at June 30, 1996 was substantially the same for
federal income tax and financial reporting purposes. Net unrealized appreciation
aggregated $2,149,366, of which $2,829,767 related to appreciated securities and
$680,401 related to depreciated securities.
32 - CRI CAPITAL ACCUMULATION PORTFOLIO
SEMI-ANNUAL REPORT (UNAUDITED)
<PAGE>
Capital Accumulation Portfolio
Financial Highlights
<TABLE>
<CAPTION>
Periods Ended
---------------------------------------------
June 30, December 31,
1996 1995 1994
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning........................................... $ 22.42 $16.97 $18.95
Income from investment operations ======= ====== ======
Net investment income............................................. (.07) (.15) .10
Net realized and unrealized gain (loss)........................... 2.04 6.85 (1.98)
------- ------ ------
Total from investment operations.............................. 1.97 6.70 (1.88)
------- ------ ------
Distributions from
Net investment income............................................. --- (.01) (.10)
Net realized gains................................................ --- (1.24) ---
------- ------ ------
Total distributions........................................... --- (1.25) (.10)
------- ------ ------
Total increase (decrease) in net asset value......................... 1.97 5.45 (1.98)
------- ------ ------
Net asset value, ending.............................................. $ 24.39 $22.42 $16.97
======= ====== ======
Total return*........................................................ 8.79% 39.46% (9.92%)
======= ====== ======
Ratios to average net assets:
Net investment income............................................. (.65%)(a) (.84%) .68%
======= ====== ======
Total expenses +.................................................. 1.43%(a) 1.56% ---
======= ====== ======
Net expenses...................................................... 1.04%(a) 1.25% .79%
======= ====== ======
Expenses reimbursed............................................... --- .10% ---
======= ====== ======
Portfolio turnover***................................................ 60% 135% 79%
======= ====== ======
Net assets, ending (in thousands).................................... $16,793 $8,935 $5,689
======= ====== ======
Number of shares outstanding,
ending (in thousands).............................................. 689 398 335
======= ====== ======
</TABLE>
<TABLE>
<CAPTION>
Periods Ended
---------------------------------------------
December 31,
1993 1992 1991**
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning........................................... $17.87 $15.82 $15.00
Income from investment operations ====== ====== ======
Net investment income............................................. .08 .09 .26
Net realized and unrealized gain (loss)........................... 1.27 2.09 .82
------ ------ ------
Total from investment operations.............................. 1.35 2.18 1.08
------ ------ ------
Distributions from
Net investment income............................................. (.08) (.09) (.26)
Net realized gains................................................ (.19) (.04) ---
------ ------ ------
Total distributions........................................... (.27) (.13) (.26)
------ ------ ------
Total increase (decrease) in net asset value......................... 1.08 2.05 .82
------ ------ ------
Net asset value, ending.............................................. $18.95 $17.87 $15.82
====== ====== ======
Total return*........................................................ 7.56% 13.73% 7.25%
====== ====== ======
Ratios to average net assets:
Net investment income............................................. .66% 1.19% .84%(a)
====== ====== ======
Total expenses +.................................................. --- --- ---
====== ====== ======
Net expenses...................................................... .80% .39% ---
====== ====== ======
Expenses reimbursed............................................... --- .87% 4.23%(a)
====== ====== ======
Portfolio turnover................................................... 26% 2% 5%
====== ====== ======
Net assets, ending (in thousands).................................... $4,986 $ 870 $ 268
====== ====== ======
Number of shares outstanding,
ending (in thousands).............................................. 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.
** From July 16, 1991, inception.
*** Portfolio turnover excludes transactions in connection with the February
1996 merger of CRI Equity Portfolio.
SEMI-ANNUAL REPORT (UNAUDITED) CRI CAPITAL ACCUMULATION PORTFOLIO - 33
<PAGE>
CALVERT RESPONSIBLY INVESTED
GLOBAL EQUITY PORTFOLIO
Managed by Murray Johnstone, Ltd.
Dear Investor:
The U.S. continued to lead world markets higher in the first half of 1996,
while several markets in Europe and the Far East also provided impressive
returns. For the period, the Global Equity Portfolio's total return of 7.87%
outpaced the Morgan Stanley Capital International World Index's total return of
7.3%.
Although U.S. corporate profit momentum has slowed since 1995, the
underlying economy remains healthy. But share price volatility has increased and
companies with disappointing earnings have seen their share prices punished.
In Europe, some countries' economies have thrived, while other economies
have been depressed by overvalued currencies. By the end of the period, Europe
was up 6.6%, with Spain up 14.4%, Italy 13.2%, France 11.4%, Germany 4.8%,
Switzerland 4.3%, and the U.K. 2.7%.*
After a poor start, the Japanese market performed well in April, returning
5.7% on the month. Subsequently, the market retreated and Japan ended the period
up only 1.2%.
Southeast Asia did not meet expectations. The Hong Kong market was the
exception, returning 12.7%. In Singapore, the authorities imposed penalties on
short-term property transactions. These measures coincided with the transfer of
short-term funds from Singapore to Taiwan, once tensions surrounding Taiwan's
March presidential elections had eased. Together, these factors caused the
Singapore market to return -3.2%.
Latin America offered sound returns. The Mexican index advanced 15.6% and
Argentina 14.8%. The important regional feature: the decoupling of
* Index figures for all nations and regions quoted are Morgan Stanley Capital
International Total Return Indices, in dollars, for the six months ended June
30, 1996.
CALVERT RESPONSIBLY INVESTED
GLOBAL EQUITY PORTFOLIO
[GRAPH APPEARS HERE]
Average Annual Total Return
(period ending 6/30/95)
1 Year 15.04% Life of Fund 10.37% (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.
34 - CRI GLOBAL EQUITY PORTFOLIO SEMI-ANNUAL REPORT (UNAUDITED)
<PAGE>
markets from the U.S. bond market in early April, when investors began focusing
on earnings recovery.
PERFORMANCE AND STRATEGY
While remaining underweight in the U.S. market, our strategy for the
international markets saw two phases. First, we overweighted exposure to the Far
East markets, maintained a close to neutral exposure to Europe, and
underweighted our exposure to Japan. Within Europe, we emphasized the Italian
and Spanish markets. Although the strategy slowed performance in the first
quarter, elections in Italy and Spain resulted in the installation of more
stable governments and investors returned in force. For our second phase, we
increased our exposure to Germany and Switzerland during May. We anticipate the
recovery of these economies, which have been depressed by tight fiscal policies
and strong currencies.
Following the April surge in Japan, we decreased our exposure there from
28.0% to 18.0% of the Portfolio in anticipation of a quieter period mid-year.
The reduction proved timely. The combination of falling share prices and a
weaker yen vs. the dollar caused their market to decline 5.1% in May.
In Hong Kong, we remain positive on the outlook for both the politics and
the market. But the perceived weakness has afforded us some excellent buying
opportunities and we have recently increased our exposure there.
With government policies referred to earlier playing against stocks in
Singapore we decided to reduce exposure, although the portfolio remains
overweight.
OUTLOOK
We will continue to underweight the U.S. market, placing more emphasis on
the international markets. Growth that appeared to be coming in Europe slowed
during the first half of 1996. Absent inflation, we expect pro-growth policies
to be introduced that lead many European economies to perform better in 1997.
We remain committed to Japan. We look for a recovery in the Singaporean
market in the second half of 1996. Finally, Latin America, Mexico and Argentina
came through the 1995 recession and made a solid recovery to date. We believe
the outlook for the region is positive and will maintain the current exposure
there.
We appreciate your investment in the CRI Global Equity Portfolio.
Sincerely,
/s/ Clifton S. Sorrell
Clifton S. Sorrell
President
July 31, 1996
SEMI-ANNUAL REPORT (UNAUDITED) CRI GLOBAL EQUITY PORTFOLIO - 35
<PAGE>
GLOBAL EQUITY PORTFOLIO
STATEMENT OF INVESTMENTS
JUNE 30, 1996
<TABLE>
<CAPTION>
Equity Securities - 87.3% Shares Value
- ---------------------------------------------------------------
<S> <C> <C>
Australia - 3.7%
Australian & New Zealand Bank Group......... 25,000 $118,271
Brambles Industries, Ltd.................... 10,000 138,939
National Australia Bank..................... 23,000 212,377
--------
469,587
--------
France - 2.8%
Assur Gen de France......................... 3,105 84,150
CPR CIE Par Reesco.......................... 690 53,391
Credit Fonc France.......................... 2,691 17,526
Pinault Printemps Redoute, S.A.............. 530 185,576
--------
340,643
--------
Germany - 2.9%
Bayer Hypo/Wech Bank........................ 5,900 143,300
Linde....................................... 350 227,885
--------
371,185
--------
Hong Kong - 4.3%
Amoy Properties............................. 100,000 120,788
Hysan Development........................... 55,000 168,393
Hysan Development (warrants)*............... 2,750 1,457
Sun Hung Kai Props.......................... 25,000 252,719
--------
543,357
--------
Italy - 4.3%
IMI......................................... 23,000 192,261
Parmalat Finanz............................. 70,000 94,171
Telecom Italia Mobile (Di Risp)............. 99,300 135,534
Telecom Italia Mobile....................... 53,600 119,889
--------
541,855
--------
Japan - 22.8%
Canon, Inc.................................. 8,000 166,781
Futaba Corp................................. 4,000 181,045
Itochu Corp................................. 28,000 196,114
Keyence Corp................................ 1,000 136,241
KFC Holdings................................ 35,000 189,417
Malayan Bank BHD............................ 24,000 230,908
Mori Seiki Co............................... 12,000 241,393
Nippon Sanso Corp........................... 40,000 197,504
Omron Corp.................................. 10,000 213,048
Sanwa Bank.................................. 10,000 185,617
Shiseido Co................................. 16,000 204,819
Sumitomo Elec Industries.................... 10,000 143,556
Takasago Thml Eng........................... 12,000 194,212
</TABLE>
36 - CRI GLOBAL EQUITY PORTFOLIO SEMI-ANNUAL REPORT (UNAUDITED)
<PAGE>
<TABLE>
<CAPTION>
Equity Securities (Cont'd) Shares Value
- ------------------------------------------------------------
<S> <C> <C>
Japan (Cont'd)
Teijin................................. 32,000 $ 174,096
Tokyo Style Co......................... 13,000 227,038
----------
2,881,789
----------
Mexico - 7.2%
Banco Frances Del Rio La Plata, ADR.... 4,000 115,000
Banpais, S.A., ADR*.................... 10,000 0
Cifra, S.A. de C.V., ADR*.............. 159,000 229,485
Grupo Industrial Durango, S.A., ADR*... 11,000 111,375
Telefonos de Mexico, S.A., ADR......... 5,800 194,300
Transportadora de Gas, ADR............. 21,000 257,250
----------
907,410
----------
Netherlands - 3.1%
Elsevier, N.V......................... 7,200 109,340
ING Groep, N.V......................... 6,000 179,068
Ver Ned Uitgevers...................... 6,750 104,881
----------
393,289
----------
New Zealand - 1.7%
Independent News....................... 35,000 120,399
Wilson & Horton........................ 14,300 95,346
----------
215,745
----------
Singapore - 2.0%
Keppel Corp............................ 17,000 142,169
United Overseas, Ltd. (warrants) *..... 154,785 114,087
----------
256,256
----------
Spain - 3.1%
Aguas de Barcelona..................... 2,600 96,684
Aguas de Barcelona*.................... 77 2,827
Sotogrande, S.A.*...................... 30,650 61,298
Telefonica de Esp...................... 5,700 105,090
Vallehermoso, S.A...................... 6,340 125,309
----------
391,208
----------
Sweden - 0.4%
Scania AB, Series A.................... 930 25,848
Scania AB, Series B.................... 930 25,919
----------
51,767
----------
United Kingdom - 8.7%
Allied Irish Banks..................... 31,800 166,433
Anglian Water.......................... 5,000 46,009
Argyll Group........................... 12,000 64,668
Beazer Homes........................... 10,000 27,178
Cable & Wireless....................... 4,000 26,433
Carlton Communications................. 10,000 80,447
Commercial Union....................... 4,100 36,931
</TABLE>
SEMI-ANNUAL REPORT (UNAUDITED) CRI GLOBAL EQUITY PORTFOLIO - 37
<PAGE>
<TABLE>
<CAPTION>
EQUITY SECURITIES (CONT'D) SHARES VALUE
- --------------------------------------------------------------------------
<S> <C> <C>
UNITED KINGDOM (CONT'D)
Glynwed International........................... 10,000 $ 49,076
Hays............................................ 7,500 52,881
Johnson Matthey................................. 8,000 77,217
Kingfisher...................................... 5,000 50,202
Lloyds TSB Group................................ 15,000 73,381
Low & Bonar..................................... 7,000 57,509
Marks & Spencer................................. 4,500 32,882
National Westminster............................ 5,000 47,678
Powerscreen International....................... 3,000 21,339
SIG............................................. 6,700 22,632
Smith & Nephew.................................. 19,000 60,564
Tesco........................................... 14,000 63,923
Wolseley........................................ 6,300 44,469
-----------
1,101,852
-----------
UNITED STATES - 20.3%
Brady, W.H. Co., Class A........................ 7,000 155,750
Cardinal Health, Inc............................ 3,000 216,375
Fort Howard Corp. *............................. 8,000 159,000
Great Western Financial Corp. (rights).......... 6,000 143,250
Hong Kong Land Holdings......................... 100,000 225,000
Household International, Inc.................... 2,800 212,800
La Quinta Inns, Inc............................. 4,300 144,050
Lear Corp. *.................................... 5,000 176,250
MBNA Corp....................................... 6,000 171,000
McGraw Hill Cos., Inc........................... 100 4,575
Molex, Inc., Class A............................ 5,000 146,875
Partnerre, Ltd.................................. 6,700 200,163
Quorum Health Group, Inc. *..................... 6,500 171,438
Seitel, Inc. *.................................. 5,800 158,775
Worldcom, Inc. *................................ 5,122 283,631
-----------
2,568,932
-----------
Total Equity Securities (Cost $10,489,626)..... 11,034,875
-----------
PRINCIPAL
TIME DEPOSIT - 11.4% AMOUNT
- --------------------------------------------------------------------------
State Street Bank, London, 5.4375%, 7/1/96...... $ 1,442,203 1,442,203
-----------
Total Time Deposit (Cost $1,442,203)........... 1,442,203
-----------
TOTAL INVESTMENTS (Cost $11,931,829) - 98.7%.. 12,477,078
Other assets and liabilities, net - 1.3%...... 163,732
-----------
NET ASSETS - 100%............................. $12,640,810
===========
</TABLE>
* Non-income producing.
See notes to financial statements.
38 - CRI GLOBAL EQUITY PORTFOLIO SEMI-ANNUAL REPORT (UNAUDITED)
<PAGE>
Global Equity Portfolio
Statement of Assets and Liabilities
June 30, 1996
<TABLE>
<CAPTION>
ASSETS
- ---------------------------------------------------------------------------------------------------
<S> <C>
Investments in securities, at value................................................... $12,477,078
Cash.................................................................................. 162,545
Receivable for securities sold........................................................ 481,641
Interest and dividends receivable..................................................... 45,783
Other assets.......................................................................... 1,014
-----------
Total assets......................................................................... 13,168,061
-----------
LIABILITIES
- ---------------------------------------------------------------------------------------------------
Payable for securities purchased...................................................... 510,794
Payable to Calvert Asset Management Company, Inc...................................... 11,288
Accrued expenses and other liabilities................................................ 5,169
-----------
Total liabilities.................................................................... 527,251
-----------
Net assets.......................................................................... $12,640,810
===========
NET ASSETS CONSIST OF:
- ---------------------------------------------------------------------------------------------------
Par value and paid-in capital applicable to 683,277 shares of common
stock outstanding; $1 par value, 4,000,000 shares authorized......................... $11,497,620
Undistributed net investment income (loss)............................................ 90,350
Accumulated net realized gain (loss) on investments and foreign currencies............ 506,576
Net unrealized appreciation (depreciation) on investments and assets and liabilities
in foreign currencies................................................................ 546,264
-----------
NET ASSETS.......................................................................... $12,640,810
===========
NET ASSET VALUE PER SHARE........................................................... $18.50
===========
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT (UNAUDITED) CRI GLOBAL EQUITY PORTFOLIO - 39
<PAGE>
GLOBAL EQUITY PORTFOLIO
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 1996
<TABLE>
<CAPTION>
Net Investment Income
=================================================================
<S> <C>
Investment Income
Interest income....................................... $ 25,607
Dividend income (net of foreign taxes of $13,047)..... 121,090
--------
Total investment income.............................. 146,697
--------
Expenses
Investment advisory fee............................... 58,692
Directors' fees and expenses.......................... 359
Administrative fees................................... 19,891
Custodian fees........................................ 21,505
Registration fees..................................... 491
Reports to shareholders............................... 1,051
Professional fees..................................... 1,902
Miscellaneous......................................... 452
Reimbursement from Advisor............................ (14,022)
--------
Total expenses....................................... 90,321
Fees paid indirectly................................. (21,505)
--------
Net expenses........................................ 68,816
--------
Net Investment Income (Loss)...................... 77,881
--------
Realized and Unrealized Gain (Loss)
on Investments
=================================================================
Net realized gain (loss) on:
Securities............................................ 488,417
Foreign currencies.................................... (5,106)
--------
483,311
--------
Change in unrealized appreciation or depreciation on:
Securities............................................ 300,280
Assets and liabilities in foreign currencies.......... (1,754)
--------
298,526
--------
Net Realized and Unrealized Gain (Loss)
on Investments....................................... 781,837
--------
Increase (Decrease) in Net Assets
Resulting From Operations............................ $859,718
========
</TABLE>
See notes to financial statements.
40 - CRI GLOBAL EQUITY PORTFOLIO SEMI-ANNUAL REPORT (UNAUDITED)
<PAGE>
GLOBAL EQUITY PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months Year Ended
Ended December 31,
Increase (Decrease) in Net Assets June 30, 1996 1995
====================================================================================
<S> <C> <C>
Operations
Net investment income.................................. $ 77,881 $ 138,570
Net realized gain (loss)............................... 483,311 285,214
Change in unrealized appreciation or depreciation...... 298,526 722,317
----------- -----------
Increase (Decrease) in Net Assets
Resulting From Operations.............................. 859,718 1,146,101
----------- -----------
Distributions to shareholders from
Net investment income.................................. -- (137,673)
Net realized gain on investments....................... -- (249,074)
----------- -----------
Total distributions................................... -- (386,747)
----------- -----------
Capital share transactions
Shares sold............................................ 2,418,976 3,017,493
Reinvestment of distributions.......................... -- 386,745
Shares redeemed........................................ (468,831) (2,097,365)
----------- -----------
Total capital share transactions...................... 1,950,145 1,306,873
----------- -----------
Total Increase (Decrease)
in Net Assets........................................... 2,809,863 2,066,227
Net Assets
===================================================================================
Beginning of period.................................... 9,830,947 7,764,720
----------- -----------
End of period (including undistributed net investment
income (loss) of $90,350 and $12,469, respectively)... $12,640,810 $ 9,830,947
=========== ===========
Capital Share Activity
===================================================================================
Shares sold............................................ 136,461 186,095
Reinvestment of distributions.......................... -- 22,551
Shares redeemed........................................ (26,367) (123,999)
----------- -----------
Total capital share activity.......................... 110,094 84,647
=========== ===========
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT (UNAUDITED) CRI GLOBAL EQUITY PORTFOLIO - 41
<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. Foreign security prices,
furnished by quotation services in the security's local currency, are translated
using the current U. S. dollar exchange rate. 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. 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 valuation of assets and liabilities on each
date of net asset value determination, foreign denominations are translated into
U. S. dollars using the current exchange rate. Security transactions, income and
expenses are converted at the prevailing rate of exchange on the date of the
event. The effect of changes in foreign exchange rates on foreign denominated
securities is included with the net realized and unrealized gain or loss on
securities. Other foreign currency gains or losses are reported separately.
Distributions to Shareholders: Distributions to shareholders are recorded by
the Portfolio on ex-dividend date. Dividends from net investment income and
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.
42 - CRI GLOBAL EQUITY PORTFOLIO SEMI-ANNUAL REPORT (UNAUDITED)
<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 Administrative Services Company, an affiliate of the Advisor, provides
administrative services to the Portfolio for an annual fee, payable monthly, of
the greater of $40,000 or .10% of the Portfolio's annual 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 period, purchases and sales of investments, other than short-term
securities, were $6,183,925 and $5,142,372, respectively.
The cost of investments owned at June 30, 1996 was substantially the same for
federal income tax and financial reporting purposes. Net unrealized appreciation
aggregated $545,249, of which $1,169,393 related to appreciated securities and
$624,144 related to depreciated securities.
SEMI-ANNUAL REPORT (UNAUDITED) CRI GLOBAL EQUITY PORTFOLIO - 43
<PAGE>
GLOBAL EQUITY PORTFOLIO
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Periods Ended
-----------------------------
June 30, December 31,
1996 1995 1994
=============================================================================
<S> <C> <C> <C>
Net asset value, beginning.................... $ 17.15 $15.89 $17.72
======= ====== ======
Income from investment operations
- ---------------------------------
Net investment income........................ .11 .27 .11
Net realized and unrealized gain (loss)...... 1.24 1.69 (.49)
------- ------ ------
Total from investment operations............ 1.35 1.96 (.38)
------- ------ ------
Distributions from
- ------------------
Net investment income........................ -- (.25) (.13)
Net realized gains........................... -- (.45) (1.32)
------- ------ ------
Total distributions......................... -- (.70) (1.45)
------- ------ ------
Total increase (decrease) in net asset value.. 1.35 1.26 (1.83)
------- ------ ------
Net asset value, ending....................... $ 18.50 $17.15 $15.89
======= ====== ======
Total return*................................. 7.87% 12.35% (2.13%)
======= ====== ======
Ratios to average net assets:
Net investment income........................ 1.33%(a) 1.48% .59%
======= ====== ======
Total expenses +............................. 1.54%(a) 1.51% --
======= ====== ======
Net expenses................................. 1.18%(a) 1.12% 1.24%
======= ====== ======
Expenses reimbursed.......................... .24%(a) .39% .29%
======= ====== ======
Portfolio turnover............................ 48% 90% 84%
======= ====== ======
Net assets, ending (in thousands)............. $12,641 $9,831 $7,765
======= ====== ======
Number of shares outstanding,
ending (in thousands)........................ 683 573 489
======= ====== ======
</TABLE>
<TABLE>
<CAPTION>
Periods Ended
-----------------
December 31,
1993 1992**
=============================================================================
<S> <C> <C>
Net asset value, beginning.................... $14.57 $15.00
====== ======
Income from investment operations
- ---------------------------------
Net investment income........................ .11 (.02)
Net realized and unrealized gain (loss)...... 4.07 (.41)
------ ------
Total from investment operations............ 4.18 (.43)
------ ------
Distributions from
- ------------------
Net investment income........................ (.08) --
Net realized gains........................... (.95) --
------ ------
Total distributions......................... (1.03) --
------ ------
Total increase (decrease) in net asset value.. 3.15 (.43)
------ ------
Net asset value, ending....................... $17.72 $14.57
====== ======
Total return*................................. 29.72% (3.27%)
====== ======
Ratios to average net assets:
Net investment income........................ 1.00% (.98%)(a)
====== ======
Total expenses +............................. -- --
====== ======
Net expenses................................. .94% .98%(a)
====== ======
Expenses reimbursed.......................... .10% 1.07%(a)
====== ======
Portfolio turnover............................ 64% --
====== ======
Net assets, ending (in thousands)............. $4,529 $ 236
====== ======
Number of shares outstanding,
ending (in thousands)........................ 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.
** From June 30, 1992, inception.
44 - CRI GLOBAL EQUITY PORTFOLIO SEMI-ANNUAL REPORT (UNAUDITED)
<PAGE>
CALVERT RESPONSIBLY INVESTED BALANCED PORTFOLIO
Managed by Calvert Asset Management Company, Inc. and
NCM Capital Management, Inc.
Dear Investor:
For the six-month period ended June 30, 1996, the economy advanced on a
moderate growth track as export sales rose along with strong business spending
for computers. Based on second-quarter estimates, Gross Domestic Product (GDP)
rose at an annualized rate of 4%, up from 2.2% annualized based on actual first-
quarter data. Because inflation appeared to remain in check, Federal Reserve
policymakers elected to keep rates steady after an initial cut in January in the
target Federal Funds rate (the rate that banks charge each other for overnight
loans) from 5.5% to 5.25%.
Market Summary
For the period, stocks outperformed bonds. But both reacted negatively to
news that jobs were enjoying a quiet explosion -- around 1.3 million were added
during the time frame. Investors feared that faster job growth could bring
higher inflation and force the Fed to raise short-term interest rates.
Stocks mounted an impressive advance, with the Dow Jones Industrial Average
gaining 10.5%. Small-cap stocks outperformed large-cap stocks, as investors
returned to investing in growth companies with strong fundamentals. At the same
time, investors committed some $100 billion to equity mutual funds following the
Dow's peak in mid-
Calvert Responsibly Invested
Balanced Portfolio
Comparison of change in value of a
hypothetical $10,000 investment.
[graph appears here]
$40,000_________________________________
$35,000_________________________________$36,405
$30,000_________________________________
$25,000_________________________________$25,415
$23,068
$20,000_________________________________
$15,000_________________________________$17,259
$10,000_________________________________
9/2/86 6/88 6/90 6/92 6/94 6/96
6/87 6/89 6/91 6/93 6/95
____________CRI Balanced
------------90-Day T-Bill
____________Lehman Aggregate Bond
------------S&P 500 Reinv
Average Annual Total Return
(period ending 6/30/95)
1 Year 14.03% 5 Year 10.62%
Life of Fund 9.98% (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.
SEMI-ANNUAL REPORT (UNAUDITED) CRI BALANCED PORTFOLIO - 45
<PAGE>
February, showing they had not lost their appetite for stocks.
The first half of 1996 was disappointing for bondholders. As prices declined,
yields rose, with the Lehman Aggregate Bond Index falling 1.21%. Gains for
money market investors were modest, with the average money market fund returning
2.45% for the period according to the Lipper Money Market Fund Index.
Performance and Strategy
For the six months ended June 30, 1996, the CRI Balanced Portfolio returned
3.11%, just slightly behind the Lipper Balanced Fund Index of 4.50%. While both
the equity and bond portions of the Portfolio contributed to the
underperformance, the equity side played a larger role in these results.
For the equity portion of the Portfolio, positive contributions came from our
exposure to retailers, transportation, energy, and consumer services. On
balance, holdings in the healthcare and technology sectors adversely affected
returns. We anticipate consumer services and recovering technology holdings to
be among our winners for the remainder of the year.
The bond portion of the Portfolio slightly underperformed the Lehman Aggregate
Bond Index for the period. Currently, the average maturity of the Portfolio's
bond portion is approximately 7.0 years. Duration is in the 5-year range, which
is shorter than our peers but longer than our index.
Outlook
Since volatility often increases late in a market cycle, the increasing stock
market turbulence may mean the nearly six-year bull market is finally coming to
an end. Still, for the period covered by this report, we should remember that
the Dow's recent six-month advance of 10.5% is about equal to the returns that
stocks have delivered in an average year over a period of decades.
Our forecast for the remainder of the year calls for continued modest economic
growth. But with tight job markets and rising wages, we would not be surprised
to see the Federal Reserve raise short-term interest rates in the coming months,
possibly as early as August.
Sincerely,
/s/ Clifton S. Sorrell
Clifton S. Sorrell
President
July 31, 1996
45 - CRI BALANCED PORTFOLIO SEMI-ANNUAL REPORT (UNAUDITED)
<PAGE>
BALANCED PORTFOLIO
STATEMENT OF INVESTMENTS
JUNE 30, 1996
<TABLE>
<CAPTION>
Principal
Corporate Debt - 7.4% Amount Value
- -----------------------------------------------------------------------------------------
<S> <C> <C>
Albertsons, Inc., 6.18%, 3/22/00................................ $ 25,000 $ 24,475
AMR Corp., 9.82%, 3/7/01........................................ 25,000 27,478
BellSouth Savings, 9.19%, 7/1/03................................ 377,765 409,625
Dayton Hudson Corp., 9.00%, 10/1/21............................. 60,000 66,158
Dean Witter Discover & Co., 6.30%, 1/15/06...................... 1,000,000 923,210
Discover Card Master Trust, 6.05%, 8/18/08...................... 1,500,000 1,381,498
Essex Marina Cove, 9.59%, 11/29/96.............................. 3,000,000 2,998,127
First Union Corp., 6.55%, 10/15/35.............................. 1,000,000 949,100
Puget Power Consv., 6.45%, 4/11/05.............................. 1,752,007 1,709,766
United Dominion Realty Trust, Inc., 8.50%, 9/15/24.............. 1,200,000 1,273,284
-----------
Total Corporate Debt (Cost $9,939,632)......................... 9,762,721
-----------
Mortgage Backed Securities - 16.0%
- -----------------------------------------------------------------------------------------
Advanta Corp., 5.50%, 3/25/10................................... 1,986,617 1,876,422
Federal Home Loan Mortgage Corp., 5.50%, 5/1/11................. 3,973,085 3,677,523
Federal Home Loan Mortgage Corp., 6.00%, 12/15/19............... 1,000,000 958,340
Federal Home Loan Mortgage Corp., 6.50%, 8/15/21................ 1,000,000 980,310
Federal National Mortgage Assn., 5.32%, 7/31/96................. 5,000,000 4,977,833
Federal National Mortgage Assn., 6.00%, 5/1/06.................. 2,665,840 2,545,877
Federal National Mortgage Assn., 6.50%, 12/25/23................ 1,000,000 915,000
Federal National Mortgage Assn., 7.00%, 8/1/25.................. 965,902 929,980
Government National Mortgage Assn., 6.50%, 12/15/23............. 1,378,183 1,291,192
Vendee Mortgage Trust, 6.75%, 9/15/09........................... 1,163,000 1,140,694
Vendee Mortgage Trust, 8.00%, 7/15/18........................... 1,000,000 1,031,430
Vendee Mortgage Trust, 6.75%, 4/15/22........................... 1,000,000 893,750
-----------
Total Mortgage Backed Securities (Cost $21,402,606)............ 21,218,351
-----------
Municipal Obligations - 5.1%
- -----------------------------------------------------------------------------------------
Gardena, California Certificates of Participation VRDN, 5.95%,
7/1/25, LOC: Dai-Ichi Kangyo Bank **........................... 500,000 500,000
Illinois Housing Development Authority, 8.35%, 8/1/26........... 1,160,000 1,175,289
Maryland State Economic Development Corp., 8.00%, 10/1/05....... 1,000,000 999,800
Maryland State Economic Development Corp., 8.625%, 10/1/19...... 750,000 752,565
New York, New York, 5.55%, 8/1/23............................... 2,000,000 2,000,000
Texas State, College Student Loan, 7.35%, 12/1/21............... 600,000 570,276
Virginia State Housing Development Authority, 7.55%, 7/1/11..... 740,000 718,592
-----------
Total Municipal Obligations (Cost $6,751,867).................. 6,716,522
-----------
U.S. Government and Instrumentalities - 10.6%
- -----------------------------------------------------------------------------------------
Federal Farm Credit Bank, 6.75%, 5/14/99........................ 3,000,000 3,007,230
Federal Home Loan Mortgage Corp., 6.80%, 5/14/99................ 2,000,000 2,005,940
Federal National Mortgage Assn., 6.58%, 3/1/03.................. 1,000,000 952,340
</TABLE>
SEMI-ANNUAL REPORT (UNAUDITED) CRI BALANCED PORTFOLIO - 47
<PAGE>
<TABLE>
<CAPTION>
U.S. GOVERNMENT AND PRINCIPAL
INSTRUMENTALITIES (CONT'D) AMOUNT VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
Federal National Mortgage Assn., 5.49%, 10/2/03 ....... $ 1,075,000 $ 997,202
Federal National Mortgage Assn., 5.875%, 2/2/06 ....... 4,500,000 4,150,935
Financing Corp., 9.80%, 11/30/17 ...................... 50,000 63,095
Financing Corp., 9.80%, 4/6/18 ........................ 50,000 63,233
Resolution Funding Corp., 8.625%, 1/15/21 ............. 1,000,000 1,167,270
Silver Spring Metro Center, 6.875%, 5/15/13 ........... 50,000 45,597
Small Business Administration, 8.05%, 6/1/12 .......... 847,397 857,684
WNH Ltd. Partnership, 9.40%, 10/01/99 ................. 705,000 747,286
----------
Total U.S. Government Agencies and Instrumentalities
(Cost $14,197,569) ................................... 14,057,812
----------
U.S. TREASURY - 2.5%
- --------------------------------------------------------------------------------
U.S. Treasury Bonds, 6.875%, 8/15/25 .................. 1,500,000 1,485,495
U.S. Treasury Notes, 5.625%, 2/15/06 .................. 1,000,000 928,570
U.S. Treasury Notes, 5.875%, 11/15/05 ................. 1,000,000 942,350
----------
Total U.S. Treasury (Cost $3,629,018)................. 3,356,415
----------
OTHER DEBT - 0.8%
- --------------------------------------------------------------------------------
Chickasaw Nation, Oklahoma, 10.00%, 8/1/03 ............ 1,000,000 1,020,060
South Africa Rep., 9.625%, 12/15/99 ................... 15,000 15,656
----------
Total Other Debt (Cost $1,014,749).................... 1,035,716
----------
EQUITY SECURITIES - 56.7% SHARES
- --------------------------------------------------------------------------------
AIRLINES - 0.6%
Comair Holdings, Inc................................... 30,300 818,100
----------
818,100
----------
BEVERAGE HOTEL AND LEISURE - 0.4%
Regal Cinemas, Inc. * ................................ 10,882 497,851
----------
497,851
----------
BIOTECHNOLOGY - 1.6%
Amgen, Inc. * ......................................... 24,560 1,326,240
Chiron Corp. * ........................................ 8,100 793,800
----------
2,120,040
----------
BUILDING MATERIALS AND CONSTRUCTION - 0.3%
Oakwood Homes Corp. ................................... 21,600 445,500
----------
445,500
----------
BUSINESS EQUIPMENT AND SERVICES - 1.4%
Hewlett Packard Co. ................................... 18,500 1,843,063
----------
1,843,063
</TABLE>
48 - CRI BALANCED PORTFOLIO SEMI-ANNUAL REPORT (UNAUDITED)
<PAGE>
<TABLE>
<CAPTION>
Equity Securities (Cont'd) Shares Value
_________________________________________________________________
<S> <C> <C>
COMMUNICATIONS - 2.4%
Ameritech Corp........................... 26,295 $ 1,561,266
Comcast Corp., Class A................... 44,745 822,189
SBC Communications, Inc. ................ 15,700 773,225
----------
3,156,680
----------
COMPUTERS - 6.4%
3Com Corp. *............................ 30,200 1,381,650
BMC Software, Inc. *..................... 20,400 1,218,900
Computer Associates International, Inc... 17,685 1,260,056
Microsoft Corp. *........................ 12,510 1,502,764
Oracle Corp. *........................... 40,457 1,595,523
Sun Microsystems, Inc. *................. 25,020 1,473,052
----------
8,431,945
----------
CONSUMER PRODUCTS AND SERVICES - 2.8%
CUC International, Inc. *................ 48,000 1,704,000
Gillette Co. ............................ 30,900 1,927,388
----------
3,631,388
----------
DELIVERY - 0.9%
Federal Express Corp. *.................. 15,050 1,234,100
----------
1,234,100
----------
ELECTRONICS - 4.4%
Arrow Electronics, Inc. *................ 25,590 1,103,569
Atmel Corp. *............................ 23,400 704,925
EMC Corp. *.............................. 83,850 1,561,706
Linear Technology Corp. ................. 33,500 1,005,000
Philips Electronics N.V. ................ 22,700 740,587
Teradyne, Inc. (rights) *................ 40,250 694,312
----------
5,810,099
----------
ENTERTAINMENT - 0.9%
Walt Disney Co........................... 19,205 1,207,514
----------
1,207,514
----------
FINANCIAL SERVICES - 8.4%
Bank New York, Inc....................... 22,300 1,142,875
Bank of Boston Corp. (rights)............ 16,515 817,493
BankAmerica Corp. ....................... 25,700 1,946,775
Federal National Mortgage Assn. ......... 56,400 1,889,400
Green Tree Financial Corp. .............. 40,330 1,260,313
SunAmerica, Inc. ........................ 24,800 1,401,200
Umbono Investment Corp., Ltd. *.......... 1,156,540 2,669,144
----------
11,127,200
----------
FOOD PRODUCTS & SERVICES - 3.0%
CPC International, Inc................... 21,300 1,533,600
Hershey Foods Corp. ..................... 15,800 1,159,325
Sysco Corp. ............................. 35,900 1,229,575
----------
3,922,500
----------
</TABLE>
SEMI-ANNUAL REPORT (UNAUDITED) CRI BALANCED PORTFOLIO - 49
<PAGE>
<TABLE>
<CAPTION>
EQUITY SECURITIES (CONT'D) Shares Value
- ----------------------------------------------------------------------------
<S> <C> <C>
Health Care - 2.3%
Healthcare Compare Corp. *........................ 24,150 $1,177,312
Johnson & Johnson.................................. 38,600 1,910,700
----------
3,088,012
----------
Industrial Products - 2.3%
Applied Materials, Inc. *......................... 23,500 716,750
Coherent, Inc. *................................... 8,300 431,600
Praxair, Inc....................................... 20,300 857,675
Sigma Aldrich Corp................................. 20,225 1,082,037
----------
3,088,062
----------
Insurance - 2.9%
AFLAC, Inc......................................... 49,150 1,468,356
American International Group, Inc.................. 16,950 1,671,694
MGIC Investment Corp............................... 13,200 740,850
----------
3,880,900
----------
Machinery - 0.9%
Aviation Sales Co. *............................... 22,600 463,300
Harnischfeger Industries, Inc. .................... 22,500 748,125
----------
1,211,425
----------
Manufacturing - 0.9%
Dover Corp......................................... 24,945 1,150,588
----------
1,150,588
----------
Medical - 3.9%
Becton Dickinson & Co.............................. 17,520 1,405,980
Boston Scientific Corp. *......................... 26,385 1,187,325
Guidant Corp....................................... 11,500 566,375
Medtronic, Inc. ................................... 27,900 1,562,400
Neopath, Inc. *.................................... 14,500 366,125
----------
5,088,205
----------
Merchandising - 1.4%
Albertson's, Inc. ................................. 44,580 1,844,498
----------
1,844,498
----------
Paper and Packaging - 1.4%
Avery Dennison Corp................................ 18,250 1,001,469
Sealed Air Corp. *................................. 25,000 840,625
----------
1,842,094
----------
Pharmaceutical - 1.6%
Merck & Co., Inc. ................................. 27,700 1,790,113
Neurogen Corp. *................................... 14,400 370,800
----------
2,160,913
----------
</TABLE>
50 - CRI BALANCED PORTFOLIO SEMI-ANNUAL REPORT (UNAUDITED)
<PAGE>
<TABLE>
<CAPTION>
EQUITY SECURITIES (CONT'D) SHARES VALUE
- ----------------------------------------------------------------------------------
<S> <C> <C>
Retail - 2.0%
Barnes & Noble, Inc. *.................................. 23,800 $ 853,825
Consolidated Stores Corp. *............................. 23,050 847,088
Jones Apparel Group, Inc. *............................. 20,300 997,238
------------
2,698,151
------------
Telecommunications - 3.6%
360 Communications Co. *................................ 65,400 1,569,600
Century Telephone Enterprises, Inc. (rights)............ 48,565 1,548,009
Ericsson L. M. Telephone, Co., Class B, ADR............. 76,705 1,649,158
------------
4,766,767
------------
Total Equity Securities (Cost $65,019,852)........... 75,065,595
------------
TOTAL INVESTMENTS (Cost $121,955,293) - 99.1%..... 131,213,132
Other assets and liabilities, net - 0.9%.......... 1,225,694
------------
NET ASSETS - 100%................................. $132,438,826
============
</TABLE>
* Non-income producing.
** Optional tender features give these securities a shorter effective maturity
date.
Explanation of Guarantees:
LOC: Letter of Credit
Abbreviations:
VRDN: Variable Rate Demand Notes
See notes to financial statements.
SEMI-ANNUAL REPORT (UNAUDITED) CRI BALANCED PORTFOLIO - 51
<PAGE>
BALANCED PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1996
<TABLE>
<CAPTION>
Assets
- ----------------------------------------------------------------------------------------------------
<S> <C>
Investments in securities, at value................................................... $131,213,132
Cash.................................................................................. 648,351
Receivable for securities sold........................................................ 250,839
Interest and dividends receivable..................................................... 861,059
Other assets.......................................................................... 9,592
------------
Total assets......................................................................... 132,982,973
------------
Liabilities
- ----------------------------------------------------------------------------------------------------
Payable for securities purchased...................................................... 454,433
Payable to Calvert Asset Management Company, Inc. .................................... 75,561
Accrued expenses and other liabilities................................................ 14,153
------------
Total liabilities.................................................................... 544,147
------------
Net assets.......................................................................... $132,438,826
============
Net Assets Consist of:
- ----------------------------------------------------------------------------------------------------
Par value and paid-in capital applicable to 75,404,546 shares of common
stock outstanding; $1 par value, 76,000,000 shares authorized........................ $116,729,016
Undistributed net investment income (loss)............................................ 1,863,534
Accumulated net realized gains (losses) on investments and foreign currencies......... 4,588,951
Net unrealized appreciation (depreciation) on investments and assets and liabilities
in foreign currencies................................................................ 9,257,325
------------
Net Assets.......................................................................... $132,438,826
============
Net Asset Value per Share........................................................... $1.756
============
</TABLE>
See notes to financial statements.
52 - CRI BALANCED PORTFOLIO SEMI-ANNUAL REPORT (UNAUDITED)
<PAGE>
BALANCED PORTFOLIO
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 1996
<TABLE>
<CAPTION>
Net Investment Income
- --------------------------------------------------------------------
<S> <C>
Investment Income
Interest income....................................... $1,685,277
Dividend income (net of foreign taxes of $11,929)..... 392,696
----------
Total investment income.............................. 2,077,973
----------
Expenses
Investment advisory fee............................... 429,589
Directors' fees and expenses.......................... 3,930
Custodian fees........................................ 22,898
Registration fees..................................... 4,728
Reports to shareholders............................... 817
Professional fees..................................... 41,262
Miscellaneous......................................... 5,054
----------
Total expenses....................................... 508,278
Fees paid indirectly................................. (22,898)
----------
Net expenses........................................ 485,380
----------
Net Investment Income.............................. 1,592,593
----------
Realized and Unrealized Gain (Loss)
on Investments
- --------------------------------------------------------------------
Net realized gain (loss) on:
Securities............................................ 3,692,663
Foreign currencies.................................... (13,464)
----------
3,679,199
----------
Change in unrealized appreciation or depreciation on:
Securities............................................ (1,724,006)
Assets and liabilities in foreign currencies.......... (490)
----------
(1,724,496)
----------
Net Realized and Unrealized Gain (Loss)
on Investments....................................... 1,954,703
----------
Increase (Decrease) in Net Assets
Resulting From Operations............................ $3,547,296
==========
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT (UNAUDITED) CRI BALANCED PORTFOLIO - 53
<PAGE>
BALANCED PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
Increase (Decrease) in Net Assets June 30, 1996 Dec. 31, 1995
- -----------------------------------------------------------------------------------------------
<S> <C> <C>
Operations
Net investment income..................................... $ 1,592,593 $ 2,688,213
Net realized gain (loss).................................. 3,679,199 9,131,406
Change in unrealized appreciation or depreciation......... (1,724,496) 10,212,473
------------ ------------
Increase (Decrease) in Net Assets
Resulting From Operations................................ 3,547,296 22,032,092
------------ ------------
Distributions to shareholders from
Net investment income..................................... -- (2,379,651)
Net realized gain on investments.......................... -- (7,467,802)
------------ ------------
Total distributions...................................... -- (9,847,453)
------------ ------------
Capital share transactions
Shares sold............................................... 19,160,086 27,827,854
Shares issued from merger (Note A)........................ 3,670,827
Reinvestment of distributions............................. -- 9,847,453
Shares redeemed........................................... (4,176,596) (6,215,413)
------------ ------------
Total capital share transactions......................... 18,654,317 31,459,894
------------ ------------
Total Increase (Decrease)
in Net Assets.............................................. 22,201,613 43,644,533
Net Assets
- -----------------------------------------------------------------------------------------------
Beginning of period....................................... 110,237,213 66,592,680
------------ ------------
End of period (including undistributed net investment
income (loss) of $1,863,534 and $270,941, respectively).. $132,438,826 $110,237,213
============ ============
Capital Share Activity
- -----------------------------------------------------------------------------------------------
Shares sold............................................... 11,039,246 16,449,557
Shares issued from merger (Note A)........................ 2,061,104
Reinvestment of distributions............................. -- 5,782,412
Shares redeemed........................................... (2,423,824) (3,747,516)
------------ ------------
Total capital share activity............................. 10,676,526 18,484,453
============ ============
</TABLE>
See notes to financial statements.
54 - CRI BALANCED PORTFOLIO SEMI-ANNUAL REPORT (UNAUDITED)
<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 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.
On February 23, 1996, the net assets of CRI Bond Portfolio, approximately $3.7
million, were merged into the Portfolio. The merger was a tax-free exchange,
whereby shares of the Portfolio were issued to the former CRI Bond policy
holders.
Security Valuation: Securities listed or traded on a national securities
exchange are valued at the last reported sale price. Foreign security prices,
furnished by quotation services in the security's local currency, are translated
using the current U. S. dollar exchange rate. 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. 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 valuation of assets and liabilities on each
date of net asset value determination, foreign denominations are translated into
U. S. dollars using the current exchange rate. Security transactions, income and
expenses are converted at the prevailing rate of exchange on the date of the
event. The effect of changes in foreign exchange rates on foreign denominated
securities is included with the net realized and unrealized gain or loss on
securities. Other foreign currency gains or losses are reported separately.
Distributions to Shareholders: Distributions to shareholders are recorded by
the Portfolio on ex-dividend date. Dividends from net investment income and
distributions from net realized capital gains, if any, are paid at least
annually.
SEMI-ANNUAL REPORT (UNAUDITED) CRI BALANCED PORTFOLIO - 55
<PAGE>
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.
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 period, purchases and sales of investments, other than short-term
securities, were $51,322,754 and $40,030,071, respectively. U.S. government
security purchases were $46,376,006 and sales were $32,715,456. Such
transactions are exclusive of the effects of the merger of CRI Bond.
The cost of investments owned at June 30, 1996 for federal income tax purposes
was $121,989,188. Net unrealized appreciation aggregated $9,223,944, of which
$12,211,846 related to appreciated securities and $2,987,902 related to
depreciated securities.
As a cash management practice, the Portfolio may sell or purchase short-term
variable rate notes from other Portfolios managed by the Advisor. The
transactions are effected at par with no gain or loss to the Portfolio in
accordance with its policies.
Additionally, the Portfolio purchased securities from other Portfolios for a
cost of $5,000,800; executed at independently derived prices.
56 - CRI BALANCED PORTFOLIO SEMI-ANNUAL REPORT (UNAUDITED)
<PAGE>
BALANCED PORTFOLIO
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
PERIODS ENDED
----------------------------------------
JUNE 30, DECEMBER 31,
1996 1995 1994
=========================================================================================
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING.................... $ 1.703 $ 1.440 $ 1.537
======== ======== ========
Income from investment operations
Net investment income....................... .021 .050 .046
Net realized and unrealized gain (loss)..... .032 .380 (.097)
-------- -------- --------
Total from investment operations......... .053 .430 (.051)
-------- -------- --------
Distributions from
Net investment income....................... --- (.040) (.046)
Net realized gains.......................... --- (.127) ---
-------- -------- --------
Total distributions...................... --- (.167) (.046)
-------- -------- --------
Total increase (decrease) in net asset value . .053 .263 (.097)
-------- -------- --------
NET ASSET VALUE, ENDING....................... $ 1.756 $ 1.703 $ 1.440
======== ======== ========
Total return*................................. 3.11% 29.87% (3.30%)
======== ======== ========
Ratios to average net assets:
Net investment income....................... 2.60%(a) 3.08% 3.39%
======== ======== ========
Total expenses +............................ .83%(a) .83% ---
======== ======== ========
Net expenses................................ .79%(a) .81% .80%
======== ======== ========
Portfolio turnover............................ 66% 163% 43%
======== ======== ========
NET ASSETS, ENDING (IN THOUSANDS)............. $132,439 $110,237 $ 66,593
======== ======== ========
Number of shares outstanding,
ending (in thousands)....................... 75,405 64,728 46,244
======== ======== ========
</TABLE>
<TABLE>
<CAPTION>
YEARS ENDED
----------------------------------------
DECEMBER 31,
1993 1992 1991
=========================================================================================
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING.................... $ 1.465 $ 1.403 $ 1.249
======== ======== ========
Income from investment operations
Net investment income....................... .045 .044 .050
Net realized and unrealized gain (loss)..... .072 .062 .154
-------- -------- --------
Total from investment operations......... .117 .106 .204
-------- -------- --------
Distributions from
Net investment income....................... (.045) (.044) (.050)
Net realized gains.......................... --- --- ---
-------- -------- --------
Total distributions...................... (.045) (.044) (.050)
-------- -------- --------
Total increase (decrease) in net asset value . .072 .062 .154
-------- -------- --------
NET ASSET VALUE, ENDING....................... $ 1.537 $ 1.465 $ 1.403
======== ======== ========
Total return*................................. 8.00% 7.61% 16.40%
======== ======== ========
Ratios to average net assets:
Net investment income....................... 3.69% 4.05% 4.49%
======== ======== ========
Total expenses +............................ --- --- ---
======== ======== ========
Net expenses................................ .81% .85% .85%
======== ======== ========
Portfolio turnover............................ 14% 15% 12%
======== ======== ========
NET ASSETS, ENDING (IN THOUSANDS)............. $ 54,000 $ 28,471 $ 14,946
======== ======== ========
Number of shares outstanding,
ending (in thousands)....................... 35,142 19,433 10,656
======== ======== ========
</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.
SEMI-ANNUAL REPORT (UNAUDITED) CRI BALANCED PORTFOLIO - 57