A Special Notice To All
Calvert Group Shareholders
We're pleased to announce that on April 21, 1997, Barbara
Krumsiek joined Calvert Group as president and chief executive
officer. Ms. Krumsiek comes to Calvert Group from Alliance
Capital Management, where she served as senior vice president
and managing director of their mutual funds division. She has 20
years experience in mutual fund management and marketing.
Ms. Krumsiek replaces former Calvert Group president, Clifton S.
Sorrell, who stepped down earlier this year after nearly 10
years in the top post.
We look forward to Ms. Krumsiek leading the company into the
next century and bringing Calvert Group mutual funds to a
growing number of new investors. We welcome her to the Calvert
Group family.
<PAGE>
Calvert Municipal
Intermediate Funds
Dear Investor:
Each of the Calvert Municipal Intermediate Funds
generated a positive return for the six-months ended June 30,
1997.
Review of the Economy and Markets
The economy expanded at a robust pace for the first
quarter then appeared to moderate in the second quarter. A
number of other indicators, including an increase in housing
starts and rising wages, also pointed to a strengthening
economy.
In an attempt to defuse inflationary pressures, the
Federal Reserve adopted a slightly more restrictive monetary
policy. The Fed nudged its target for key short-term rates
higher in March, but left rates unchanged during the second
quarter.
In general, bond yields moved higher during the first
part of the year then backed down toward the close of this
reporting period as investors revised their forecast for the
next Fed move from anticipation of an additional rate hike to no
intervention. Most measures of the broad stock market advanced,
with the Standard & Poor's 500 Stock Index returning 20.6% for
the six months.
[LINE GRAPH APPEARS ON SIDE OF TEXT]
MUNICIPAL RATES
1 Year AA General Obligation roughly 4%
7 Year AA General Obligation roughly 5%
20 Year AA General Obligation roughly 6%
Portfolio Strategy
In anticipation of higher rates, we maintained a
cautious position throughout the period and kept the weighted
average maturity for each of the Portfolios near the short end
of its target range. This strategy worked to our advantage as
yields moved higher through April, but when yields backed down
late in the quarter the Funds did not gain as much in price as
those of our more aggressive peers. Prices of longer-term
securities appreciate more in response to a decline in rates
than do those of shorter-term securities.
We took a further conservative measure by pruning out
securities we identified as most susceptible to the market
discount rule, which has adverse tax consequences for bond
investors and can depress prices for these securities.
Outlook
Despite today's tight labor market and rising wages,
inflation has continued to decline. Many economists and analysts
attribute this to an increase in business productivity, brought
about by broader-based use of information technology and the
growth of the Internet. In our view, businesses will soon have
to pass their higher labor costs along to consumers in the form
of modestly higher prices. At that point, we expect the Federal
Reserve will take additional steps to keep inflation in check
and interest rates will trend a bit higher. Accordingly, we will
continue to manage the Funds defensively.
<TABLE>
<S> <C> <C>
[CHART APPEARS HERE]
INVESTMENT PERFORMANCE
Periods Ended 6/30/97 Six Twelve
Months Months
National Municipal Intermediate 2.31% 6.76%
Lipper Int. Muni. Funds Avg. 2.50% 6.55%
California Municipal Intermediate 2.06% 6.26%
Lipper CA Int. Muni. Funds Avg. 2.55% 6.72%
Florida Municipal Intermediate 2.37% 6.10%
Lipper FL Int. Muni. Funds Avg. 2.36% 6.08%
Arizona Municipal Intermediate 2.06% 5.51%
Maryland Municipal Intermediate 2.48% 6.53%
Michigan Municipal Intermediate 2.65% 6.85%
LipperOther States Int. Muni. Funds Avg. 2.42% 6.31%
New York Municipal Intermediate 2.25% 6.42%
Lipper NY Int. Muni. Funds Avg. 2.63% 6.68%
Pennsylvaia Municipal Intermediate 2.39% 6.49%
Lipper PA Int. Muni. Funds Avg. 2.56% 6.68%
Virginia Municipal Intermediate 2.02% 5.94%
Lipper VA Int. Muni. Funds Avg. 2.32% 6.19%
</TABLE>
Investment performance does not reflect deduction of any front-end
sales charges.
Despite a possible rise in rates, we expect that munis
will continue to offer an advantage over after-tax yields on
comparable maturity Government issues, as they have since the
flat tax scare of 1995. Municipal bond issuance has been very
tight and met with steady demand, which puts downward pressure
on coupon rates and helps to keep prices of previously issued
securities firm. Looking ahead, we expect these positive
technical conditions will remain in force.
Thank you for your investment.
Sincerely,
David Rochat Barbara Krumsiek
Senior Vice President President
July 21, 1997
<PAGE>
[PIE CHART APPEARS HERE]
PORTFOLIO STATISTICS
Ratings Breakdown
NATIONAL INTERMEDIATE PORTFOLIO
NR AAA/Aaa BBB/Baa A/A AA/Aa
27% 39% 11% 9% 13%
ARIZONA INTERMEDIATE PORTFOLIO
NR AAA/Aaa BBB/Baa A/A AA/Aa
75% 4% 21%
CALIFORNIA INTERMEDIATE PORTFOLIO
NR AAA/Aaa BBB/Baa A/A AA/Aa
15% 48% 9% 17% 11%
FLORIDA INTERMEDIATE PORTFOLIO
NR AAA/Aaa BBB/Baa A/A AA/Aa
22% 59% 8% 11% 11%
MARYLAND INTERMEDIATE PORTFOLIO
NR AAA/Aaa BBB/Baa A/A AA/Aa
31% 37% 2% 30%
MICHIGAN INTERMEDIATE PORTFOLIO
NR AAA/Aaa BBB/Baa A/A AA/Aa
24% 43% 33%
NR: Obligation is not rated by a commercial credit rating service, such as
Moody's Investors Services, Inc., or Standard & Poor's Corporation; obligation
has been determined to be of appropriate quality for the Portfolio by Calvert
Asset Management Company, Inc., the Investment Advisor.
<PAGE>
[PIE CHART APPEARS HERE]
RATINGS BREAKDOWN
NEW YORK INTERMEDIATE PORTFOLIO
NR AAA/Aaa BBB/Baa A/A AA/Aa
9% 28% 27% 8% 28%
PENNSYLVANIA INTERMEDIATE PORTFOLIO
CASH NR AAA/Aaa BBB/Baa A/A AA/Aa
EQUIVALENT
6% 1% 43% 17% 11% 22%
VIRGINIA INTERMEDIATE PORTFOLIO
NR AAA/Aaa BBB/Baa A/A AA/Aa
27% 2% 14% 57%
NR: Obligation is not rated by a commercial credit rating service, such as
Moody's Investors Services, Inc., or Standard & Poor's Corporation; obligation
has been determined to be of appropriate quality for the Portfolio by Calvert
Asset Management Company, Inc., the Investment Advisor.
<TABLE>
<S> <C> <C>
Weighted Average Maturity
12/31/96 6/30/97
National Intermediate Portfolio 10 years 8 years
Arizona Intermediate Portfolio 8 years 8 years
California Intermediate Portfolio 9 years 8 years
Florida Intermediate Portfolio 9 years 7 years
Maryland Intermediate Portfolio 8 years 7 years
Michigan Intermediate Portfolio 8 years 8 years
New York Intermediate Portfolio 9 years 8 years
Pennsylvania Intermediate Portfolio 8 years 7 years
Virginia Intermediate Portfolio 9 years 7 years
</TABLE>
(all of the above information appears in chart).
<PAGE>
(all of the information below appears in chart).
SEC Yields
Thirty Days Ended 6/30/97
National Intermediate Portfolio 4.34%
Arizona Intermediate Portfolio 3.73%
California Intermediate Portfolio 4.25%
Florida Intermediate Portfolio 4.79%
Maryland Intermediate Portfolio 4.17%
Michigan Intermediate Portfolio 4.01%
New York Intermediate Portfolio 4.13%
Pennsylvania Intermediate Portfolio 4.26%
Virginia Intermediate Portfolio 3.78%
Yields assume reinvestment of dividends.
<TABLE>
<S> <C> <C>
Average Annual Total Returns
Since
Periods Ended 6/30/97 1 Year Inception
National Intermediate Portfolio (9/92) 3.86% 5.49%
Arizona Intermediate Portfolio (1/94) 2.62% 3.39%
California Intermediate Portfolio (5/92) 3.35% 5.09%
Florida Intermediate Portfolio (1/94) 3.18% 3.75%
Maryland Intermediate Portfolio (10/93) 3.60% 4.04%
Michigan Intermediate Portfolio (10/93) 3.95% 4.34%
New York Intermediate Portfolio (10/93) 3.52% 4.12%
Pennsylvania Intermediate Portfolio (1/94) 3.59% 4.20%
Virginia Intermediate Portfolio (10/93) 3.07% 4.24%
</TABLE>
Total returns assume reinvestment of dividends and reflect the
deduction of the Fund's maximum sales charge of 2.75%.
<PAGE>
[LINE GRAPH APPEARS HERE]
PERFORMANCE COMPARISONS
NATIONAL MUNICIPAL INTERMEDIATE PORTFOLIO
Comparison of change in value of a hypothetical $10,000 investment.
9/30/92 6/97
Calvert Municipal Intermediate $9,500 $12,891
Lehman 7 Year Municipal Bd $9,500 $13,344
ARIZONA MUNICIPAL INTERMEDIATE PORTFOLIO
Comparison of change in value of a hypothetical $10,000 investment.
12/31/93 6/97
Calvert Arizona Municipal Intermediate $10,000 $11,888
Lehman 7 Year Municipal Bd $10,000 $11,329
CALIFORNIA MUNICIPAL INTERMEDIATE PORTFOLIO
Comparison of change in value of a hypothetical $10,000 investment.
5/29/92 6/97
Calvert CA Municipal Intermediate $9,500 $12,878
Lehman 7 Year Municipal Bd $9,500 $13,711
<PAGE>
[LINE GRAPH APPEARS HERE]
PERFORMANCE COMPARISONS
FLORIDA MUNICIPAL INTERMEDIATE PORTFOLIO
Comparison of change in value of a hypothetical $10,000 investment.
12/31/93 6/97
Calvert FL Municipal Intermediate $9,800 $11,375
Lehman 7 Year Municipal Bd $10,000 $11,888
MARYLAND MUNICIPAL INTERMEDIATE PORTFOLIO
Comparison of change in value of a hypothetical $10,000 investment.
9/30/93 6/97
Calvert Maryland Municipal Intermediate $9,800 $11,603
Lehman 7 Year Municipal Bd $10,000 $12,031
MICHIGAN MUNICIPAL INTERMEDIATE PORTFOLIO
Comparison of change in value of a hypothetical $10,000 investment.
9/30/93 6/97
Calvert MI Municipal Intermediate $9,800 $11,728
Lehman 7 Year Municipal Bd $10,000 $12,031
<PAGE>
[LINE GRAPH APPEARS HERE]
PERFORMANCE COMPARISONS
NEW YORK MUNICIPAL INTERMEDIATE PORTFOLIO
Comparison of change in value of a hypothetical $10,000 investment.
9/30/93 6/97
Calvert NY Municipal Intermediate $10,000 $11,636
Lehman 7 Year Municipal Bd $10,000 $12,031
PENNSYLVANIA MUNICIPAL INTERMEDIATE PORTFOLIO
Comparison of change in value of a hypothetical $10,000 investment.
12/31/93 6/97
Calvert PA Municipal Intermediate $9,800 $11,548
Lehman 7 Year Municipal Bd $10,000 $11,889
MICHIGAN MUNICIPAL INTERMEDIATE PORTFOLIO
Comparison of change in value of a hypothetical $10,000 investment.
9/30/93 6/97
Calvert VA Municipal Intermediate $9,800 $11,686
Lehman 7 Year Municipal Bd $10,000 $12,031
<PAGE>
NATIONAL PORTFOLIO
STATEMENT OF INVESTMENTS
JUNE 30, 1997
Principal
Amount Value
Municipal Obligations - 98.6%
Arizona - 2.5%
$1,000,000 Maricopa County School District GO Bonds,
7.50%, 7/1/07, AMBAC Insured $1,213,390
California - 9.2%
1,625,000 Los Angeles MFH Revenue Bonds, 5.85%,
12/1/27 1,682,606
693,498 Regents of the University of California, Los Angeles
Lease Revenue Bonds, 6.00%, 5/15/02 710,912
200,000 San Francisco City & County MFH Revenue VRDN,
5.937%, 3/1/18 200,000
San Francisco International Airport Series-2 #5
Municipal Transportation Revenue Bonds:
500,000 5.90%, 5/1/05, FGIC Insured 538,235
750,000 6.00%, 5/1/06, FGIC Insured 813,173
400,000 Tahoe City Public Utility District COP,
Series B, 6.30%, 6/1/04 423,608
Colorado - 4.6%
1,100,000 Denver City and County Airport Revenue
Bonds, Series A, 7.10%, 11/15/01 1,191,795
1,000,000 Lakewood Industrial Development Revenue
VRDN, 5.35%, 8/1/07, LOC: West One Bank 1,000,000
Connecticut - 2.3%
1,000,000 Connecticut Special Tax Obligation
Revenue Bonds, Transportation Infrastructure
Project,6.00%, 9/1/06 1,083,460
Florida - 4.4%
1,000,000 Dade County Education Facilities
Authority Revenue Bonds, University of Miami,
6.00%, 4/1/08, MBIA Insured 1,084,910
1,000,000 Dade County MFH Revenue Bonds, 5.90%, 6/1/26 1,038,350
Georgia - 3.5%
1,500,000 Atlanta Airport Authority Facility
Revenue Bonds, 6.50%, 1/1/07, AMBAC Insured 1,683,030
Hawaii - 2.8%
1,400,000 Honolulu City & County Improvement GO
Bonds, 5.00%, 10/1/13 1,344,196
Illinois - 2.3%
1,000,000 Chicago Water Revenue Bonds, 6.50%,
11/1/10, FGIC Insured 1,120,760
Indiana - 4.8%
2,000,000 Indianapolis Local Public Improvement
Bond Bank Revenue Bonds, 6.75%, 2/1/14 2,290,880
Kentucky - 4.0%
1,900,000 Glasgow Industrial Building Revenue
VRDN, 5.775%, 6/1/20,
LOC: Bank Tokyo Mitsubishi 1,900,000
Principal
Amount Value
Louisiana - 1.0%
$425,000 Louisiana Public Facility Authority
Student Loan Revenue Bonds, 6.50%, 3/1/02 $447,427
Maryland - 10.4%
930,000 Cambridge Economic Development Authority
Revenue Bonds, Dorchester Hospital, 7.25%, 4/1/04 1,002,409
1,218,000 Cecil County Health Department COP 7.875%, 7/1/14 1,288,875
79,419 Ocean City Industrial Development Authority
Revenue VRDN, 5.525%, 7/1/13 79,419
700,000 Maryland State Economic Development Authority
Revenue Bonds, Series A, 6.375%, 11/1/09,
LOC: First National Bank of Maryland,
(Optional Tender 10/31/99 @ 100) 704,634
1,813,400 Prince Georges County Economic
Development Authority Revenue Bonds,5.68%, 8/1/11,
LOC: First National Bank of Maryland,
(Tender 1/1/01 @ 100) 1,859,823
Michigan - 2.3%
1,045,000 Michigan Higher Education Facilities
Authority Revenue Bonds, 6.00%, 11/1/03 1,084,187
Missouri - 0.4%
200,000 St. Louis Industrial Development Authority
Revenue VRDN, 4.80%, 1/1/21,
LOC: Banca Nazionale Del Lavoro 200,000
New Hampshire - 2.6%
1,000,000 Manchester MFH Revenue VRDN, 5.75%,
6/15/15, LOC: Daiwa Bank 1,000,000
250,000 Sullivan County Regional Refuse Disposal
District GO Bonds, 6.40%, 12/1/97 249,970
New Mexico - 0.1%
40,000 New Mexico Educational Assistance Foundation
Student Loan Revenue Bonds, 6.30%, 12/1/02 41,727
New Jersey - 6.2%
700,000 New Jersey Industrial Development Authority
Revenue VRDN, 4.20%, 8/1/01, LOC: Corestates 700,000
2,000,000 New Jersey Transportation Authority
Revenue Bonds, 6.50%, 6/15/11, MBIA Insured 2,270,680
New York - 4.7%
800,000 New York City GO Bonds, Series E, 5.75%, 2/15/09 811,152
60,393 New York City Hospital Revenue Bonds, Bronx
Lease, 5.75%, 12/1/97 60,408
200,000 New York State COP, 5.45%, 2/1/00 203,892
1,000,000 New York State Local Government
Assistance Corporation Revenue Bonds, 6.00%, 4/1/14 1,062,090
110,000 Orange County Industrial Authority Development
Revenue VRDN, 5.61%, 12/1/05, LOC: Summit Bank 110,000
Pennsylvania - 4.5%
50,000 Montgomery County Industrial Development
Authority Revenue VRDN, 4.05%, 12/1/13, LOC: PNC Bank 50,000
Principal
Amount Value
Pennsylvania (Cont'd)
$1,000,000 Philadelphia Airport Revenue Bonds,
5.70%, 6/15/07, AMBAC Insured $1,050,360
1,000,000 Philadelphia Hospitals & Higher Education
Facilities Authority Revenue Bonds, 5.85%, 7/1/02 1,027,420
South Dakota - 4.8%
Heartland Consumers Power District Revenue Bonds,
FSA Insured:
1,125,000 6.00%, 1/1/09 1,212,289
1,000,000 6.00%, 1/1/12 1,070,220
Texas - 3.9%
300,000 Harris County Industrial Development Revenue
VRDN, 5.10%, 8/1/01, LOC: Sakura Bank 300,000
1,500,000 North Texas Higher Education Student
Loan Revenue Bonds, Series B, 5.55%, 4/1/03 1,542,945
Virginia - 12.1%
310,000 Arlington County Community Housing Finance
Revenue Bonds, 6.00%, 6/1/09 319,895
1,000,000 Chesapeake Industrial Development
Authority Revenue Bonds, 6.00%, 6/1/07, MBIA Insured 1,086,380
700,000 Henrico County Industrial Development Authority
Revenue VRDN, 4.95%, 10/1/00, LOC: Tokai Bank 700,000
Virginia State Housing Development Authority
Revenue Bonds:
300,000 Series A, 6.90%, 7/1/07 318,189
1,120,000 Series I, 6.00%, 7/1/03 1,165,113
1,000,000 Virginia College Building Authority Revenue Bonds,
Twenty First Century College Project, 5.00%, 8/1/09 991,900
1,200,000 West Point Industrial Development
Authority Pollution Control Revenue Bonds, Chesapeake
Corp. Project, 6.375%, 5/1/03 1,204,911
Other - 5.2%
480,020 Fort Mojave Indian Tribe of Arizona, California
and Nevada Public Facilities Combined Limited
Obligation and Revenue Bonds Adjustable Rate and Tender
Series of 1993, 5.75%, 12/1/18,
(Tender 12/1/97 @ 100) 480,020
2,000,000 Oneida Utility Commission Government
Lease Revenue Bonds, 6.25%, 7/1/97 2,000,080
Total Municipal Obligations (Cost $44,927,151) 47,015,720
Contracts
Options Purchased - 0.0%
50 Put Options on September U.S. Treasury Bond
Futures, Expiration 8/23/97, Strike Price 104 2,343
Total Options (Premium $60,655) 2,343
TOTAL INVESTMENTS (Cost $44,987,806) -98.6% 47,018,063
Other assets and liabilities, net -1.4% 643,432
Net Assets - 100% $47,661,495
<PAGE>
ARIZONA PORTFOLIO
STATEMENT OF INVESTMENTS
JUNE 30, 1997
Principal
Amount Value
Arizona Municipal Obligations - 86.6%
Arizona State Transportation Board Highway
Revenue Bonds:
$200,000 6.00%, 7/1/08 $218,896
75,000 7.00%, 7/1/09, (Pre-refunded 7/1/00 @101) 81,440
100,000 Casa Grande Excise Tax Revenue Bonds, 5.70%,
4/1/06, FGIC Insured 105,189
100,000 Cochise County School District GO Bonds, 7.50%,
7/1/09, FGIC Insured 122,055
100,000 Glendale GO Bonds, 5.15%, 7/1/03, FGIC Insured 103,227
50,000 Maricopa County Creighton School District #14
GO Bonds, 6.90%, 7/1/03, FGIC Insured 56,167
200,000 Maricopa County School District #6 GO Bonds,
6.75%, 7/1/02, AMBAC Insured 220,616
150,000 Maricopa County GO Bonds, Series A, 5.80%,
7/1/04 160,164
50,000 Maricopa County Glendale School District #40 GO
Bonds, 6.30%, 7/1/03, FGIC Insured, (Pre-refunded
7/1/01 @ 101) 54,005
100,000 Maricopa County Peoria School District #11 GO
Bonds, 7.50% 7/1/07, AMBAC Insured 121,339
105,000 Maricopa County Tempe Elementary School
District #3 GO Capital Appreciation Bonds,
Zero Coupon, 7/1/04, AMBAC Insured 74,810
70,000 Maricopa County Tolleson School District #214
GO Bonds, 5.35%, 7/1/03, FGIC Insured 72,147
25,000 Mesa GO Bonds, 5.70%, 7/1/03, FGIC Insured 26,509
95,000 Peoria Municipal Development Authority Revenue
Bonds, 7.00%, 7/1/00, AMBAC Insured 102,347
50,000 Phoenix Street and Highway User Revenue Bonds,
6.10%, 7/1/00, MBIA Insured 52,610
245,000 Pima County GO Bonds, 6.00%, 7/1/06, MBIA Insured 266,474
125,000 Prescott Valley Property Corp. Municipal Facilities
Revenue Bonds, 5.55%, 1/1/06, FGIC Insured 130,860
120,000 Scottsdale GO Bonds, Series D, 6.50%, 7/1/01 129,704
100,000 Tucson Street and Highway Revenue Bonds, Series
A, 7.00%, 7/1/11, MBIA Insured 118,299
TOTAL INVESTMENTS (Cost $2,141,309) - 86.6% 2,216,858
Other assets and liabilities, net - 13.4% 341,868
Net Assets - 100% $2,558,726
See notes to financial statements.
<PAGE>
CALIFORNIA PORTFOLIO
STATEMENT OF INVESTMENTS
JUNE 30, 1997
Principal
Amount Value
California Municipal Obligations - 97.6%
$1,000,000 Anaheim Public Financing Authority
Lease Revenue Bonds, 6.00%, 9/1/14, FSA Insured $1,075,840
500,000 Buena Park VRDN, 5.355%, 12/28/99, INSUR: Mass
Mutual Life Insurance 500,000
595,000 California Educational Facilities Revenue
Bonds, University of San Francisco, 5.90%, 10/1/02 639,292
1,000,000 California GO Bonds, 6.40%, 9/1/07 1,129,190
California State Department of Water Resources
Revenue Bonds:
1,000,000 5.70%, 12/1/03 1,070,820
1,000,000 6.00%, 12/1/10 1,093,780
1,750,000 California State Public Works Department of
Corrections Lease Revenue Bonds, 5.25%, 12/1/07,
AMBAC Insured 1,816,815
1,000,000 California State Public Works Lease
Revenue Bonds, 5.625%, 3/1/16, AMBAC Insured 1,003,490
1,292,000 California Statewide Development Authority
MFH Revenue Bonds, 8.50%, 11/1/00 1,298,034
1,000,000 Los Angeles GO Bonds, Series A, 7.50%,
9/1/01, MBIA Insured 1,121,480
590,000 Los Angeles Community Redevelopment Agency Housing
Revenue Bonds, 5.50%, 12/1/05 601,192
1,000,000 Los Angeles Department of Water and Power Revenue
Bonds, 5.40%, 9/1/06 1,042,140
3,000,000 Los Angeles MFH Revenue Bonds, 5.85%, 12/1/27 3,106,350
1,000,000 Los Angeles Wastewater System Revenue Bonds,
Series A, 8.50%, 6/1/02, MBIA Insured 1,177,360
750,000 Merced County COP, 5.625%, 10/1/02, FSA Insured 794,917
640,000 Oceanside Unified School District COP, 7.25%, 8/1/02 660,314
400,000 Paramount MFH Revenue VRDN, 4.73%, 10/1/18,
LOC: Heller Financial 400,000
1,000,000 Port of Oakland Revenue Bonds, Series D, 7.00%,
11/1/02, MBIA Insured 1,124,400
323,427 Regents of University of California, Los Angeles,
COP, 6.32%, 3/15/99 328,240
Sacramento COP:
640,452 6.75%, 3/1/02 652,435
1,303,038 6.50%, 1/1/04 1,345,674
1,000,000 Sacramento City Financing Authority Revenue Bonds,
Series B, 5.00%, 11/1/14 957,430
2,000,000 San Diego County Children Center Project COP, 6.00%,
10/1/02 2,018,800
1,000,000 San Diego County Transportation Commission Revenue
Bonds, 5.25%, 4/1/06, FGIC Insured 1,039,020
600,000 San Francisco City & County MFH Revenue VRDN,
5.937%, 3/1/18 600,000
1,000,000 San Jose Redevelopment Agency
Allocation Bonds, 6.00%, 8/1/09, MBIA Insured 1,089,840
1,000,000 Southern California Rapid Transit District Special
Assessment Bonds, 5.90%, 9/1/07, AMBAC Insured 1,090,140
Principal
Amount Value
Tahoe City Public Utility District COP, Series B:
$505,000 5.75%, 6/1/99 $514,973
745,000 5.90%, 6/1/00 767,268
885,000 6.25%, 6/1/03 933,162
500,000 Union City Housing Mortgage Revenue VRDN, 4.65%, 10/1/11 500,000
1,000,000 University of California Multi Purpose
Project Revenue Bonds, Series C, 5.125%, 9/1/13,
AMBAC Insured 978,950
425,000 Valley Health System COP, 6.25%, 5/15/99 431,282
Total Municipal Obligations (Cost $31,730,269) 32,902,628
Contracts
Options Purchased - 0.0%
50 Put Options on September U.S. Treasury Bond
Futures, Expiration 8/23/97, Strike Price 104 2,343
Total Options (Premium $60,655) 2,343
TOTAL INVESTMENTS (Cost $31,790,924) -97.6% 32,904,971
Other assets and liabilities, net - 2.4% 812,516
Net Assets - 100% $33,717,487
See notes to financial statements.
<PAGE>
FLORIDA PORTFOLIO
STATEMENT OF INVESTMENTS
JUNE 30, 1997
Principal
Amount Value
Florida Municipal Obligations - 98.1%
$150,000 Boca Raton Beach Acquisition Revenue
Bonds, 4.60%, 1/1/05, MBIA Insured $149,154
195,000 Brevard County Sales Tax Revenue Bonds, 5.40%,
12/1/06, MBIA Insured 202,470
410,000 Brevard County School Board COP, 5.40%, 7/1/10 421,353
100,000 Broward County School District GO Bonds, 7.20%,
2/15/00 103,945
150,000 Broward County Solid Waste System Revenue
Bonds, 5.80%, 7/1/07, MBIA Insured 158,848
260,000 City of Miami GO Bonds, 5.90%, 12/1/06, FGIC
Insured 278,606
150,000 Dade County Aviation Revenue Bonds, 5.60%,
10/1/05, AMBAC Insured 158,400
300,000 Dade County Educational Facilities Authority
Revenue Bonds, 6.00%, 4/1/08, MBIA Insured 325,473
500,000 Dade County MFH Revenue Bonds, 5.90%, 6/1/26 519,175
450,000 Duval County MFH Revenue VRDN, 5.00%, 6/1/07,
LOC: Household Financial Corp. 450,000
150,000 East County Water Control District Water
Revenue Bonds, Series 1994, 5.45%, 11/1/02, Asset
Guaranty Insured 155,532
175,000 Florida State Board of Regents Parking System
Revenue Bonds, 5.00%, 7/1/08, FSA Insured 175,252
250,000 Florida State Department of Transportation GO Bonds,
5.00%, 7/1/07 253,935
300,000 Florida State MFH Revenue Bonds, Cypress Lake,
5.75%, 12/1/07, LOC: Heller Financial 302,760
500,000 Hillsborough County Port District Special
Refunding Revenue Bonds, 5.75%, 6/1/13, FSA Insured 513,280
150,000 Hillsborough County Solid Waste Revenue Bonds,
5.40%, 10/1/05, MBIA Insured 156,165
125,000 Hollywood Water and Sewer Revenue Bonds,
6.75%, 10/1/11, FGIC Insured (Prerefunded 10/1/01 @ 102) 138,656
100,000 Jacksonville Excise Tax Revenue Bonds, 6.25%,
10/1/05, AMBAC Insured 108,358
100,000 Jacksonville Water and Sewer Revenue Bonds,
5.20%, 10/1/02, MBIA Insured 103,472
150,000 Lee County Transportation Facilities Revenue
Bonds, 5.625%, 10/1/08, MBIA Insured 157,682
420,000 Palm Beach Housing Finance Revenue VRDN,
5.525%, 3/1/22, Fireman's Insurance Co. Insured 420,000
350,000 Pinellas County Resource Recovery Revenue
Bonds, 5.125%, 10/1/04 355,373
150,000 St. Petersburg Professional Sports Facility
Revenue Bonds, 5.10%, 10/1/04, MBIA Insured 154,197
200,000 Tallahassee Consolidated Utility System Revenue
Bonds, 4.60%, 10/1/02 201,286
200,000 Tampa Capital Improvement Revenue Bonds,
8.375%, 10/1/18, IA: Multi-Bank 207,974
180,000 University South Florida Revenue Bonds, 6.25%,
7/1/05 197,676
470,000 Volusia MFH Revenue VRDN, 4.50%, 9/1/05,
GA: Household Financial Corp. 470,000
TOTAL INVESTMENTS (Cost $6,677,218) - 98.1% 6,839,022
Other assets and liabilities, net - 1.9% 131,984
Net Assets - 100% $6,971,006
See notes to financial statements.
<PAGE>
MARYLAND PORTFOLIO
STATEMENT OF INVESTMENTS
JUNE 30, 1997
Principal
Amount Value
Maryland Municipal Obligations - 97.6%
$500,000 Anne Arundel County GO Bonds, 5.125%, 4/15/09 $503,315
Baltimore City GO Bonds:
385,000 8.90%, 10/15/99, MBIA Insured 424,385
500,000 6.00%, 10/15/04, AMBAC Insured 539,695
845,000 Cambridge Economic Development Revenue Bonds,
7.25%, 4/1/04 910,792
400,000 Carroll County GO Bonds, 6.25%, 11/1/08
(Prerefunded 11/1/01 @ 102) 436,184
500,000 Cecil County GO Bonds, 5.10%, 12/1/07, FGIC
Insured 506,740
446,000 Cecil County Health Department COP, 7.875%,
7/1/14 471,953
615,000 Charles County GO Bonds, 5.00%, 3/1/09 609,600
400,000 Frederick County GO Bonds, 5.00%, 8/1/09 394,280
400,000 Howard County GO Bonds, 5.25%, 8/15/05 414,968
250,000 Maryland Industrial Development Financing
Authority Revenue Bonds, 5.20%, 12/1/05 253,563
180,000 Maryland Industrial Development Financing
Authority Revenue Bonds, 6.375%, 11/1/09,
LOC: First National Bank of Maryland
(Optional tender 10/31/99 @ 100) 181,191
370,000 Maryland Stadium Authority Revenue Bonds, 5.375%,
12/15/03, AMBAC Insured 385,647
Maryland State COP for St. Mary's County:
155,000 5.20%, 6/1/04 160,544
180,000 5.20%, 12/1/04 186,831
Maryland State Economic Development Authority
Revenue Bonds, Series A:
165,000 6.10%, 1/1/00 172,545
500,000 8.625%, 10/1/19 516,890
300,000 Maryland State Economic Development Corp.
Revenue VRDN, 4.20%, 6/1/20, LOC: Nationsbank 300,000
Montgomery County GO Bonds:
250,000 9.75%, 6/1/01 297,823
230,000 7.00%, 5/1/03 259,208
250,000 Northeast Maryland Waste Disposal Authority
Revenue Bonds, 5.80%, 7/1/04 259,750
250,000 Ocean City GO Bonds, 6.00%, 3/15/01, MBIA Insured 263,618
1,745,525 Ocean City Industrial Development Authority Revenue
VRDN, 5.525%, 7/1/13, LOC: First National Bank
of Maryland 1,745,525
300,000 Prince Georges County COP, 5.90%, 9/15/08, MBIA Insured 319,524
400,000 University of Maryland Auxiliary System Revenue
Bonds, 5.20%, 4/1/06 411,268
400,000 Washington D.C. Metropolitan Area Transit
Authority Revenue Bonds, 6.00%, 7/1/07, FGIC Insured 433,808
150,000 Washington Suburban Sanitary District Revenue
Bonds, 5.00%, 6/1/03 153,384
TOTAL INVESTMENTS (Cost $11,125,650) - 97.6% 11,513,031
Other assets and liabilities, net - 2.4% 279,773
Net Assets - 100% $11,792,804
See notes to financial statements.
<PAGE>
MICHIGAN PORTFOLIO
STATEMENT OF INVESTMENTS
JUNE 30, 1997
Principal
Amount Value
Michigan Municipal Obligations - 98.9%
$150,000 Cedar Springs Public School District GO Bonds,
7.65%, 5/1/03 $172,649
250,000 Clarkston Community School GO Bonds, 5.25%,
5/1/07, FGIC Insured 255,837
175,000 Detroit Water Supply System Revenue Bonds,
5.30%, 7/1/09, MBIA Insured 179,377
200,000 Gladstone Public Schools GO Bonds, 6.50%,
5/1/05, AMBAC Insured 221,834
250,000 Greenville Public School District GO Bonds,
5.75%, 5/1/06, MBIA Insured 264,592
200,000 Hartland Consolidated School District GO Bonds,
5.25%, 5/1/02 206,178
250,000 Jenison Public School GO Bonds, 5.40%, 5/1/08,
FGIC Insured 257,090
Michigan Higher Education Facility Authority
Revenue Bonds:
500,000 6.00%, 11/1/03 518,750
610,000 7.00%, 11/1/05 697,456
465,000 Michigan State Housing Development Authority
Revenue VRDN, River Place Plaza Apts., 5.00%, 10/1/11 465,944
250,000 Michigan State Building Authority Facilities
Revenue Bonds, Series II, 6.25%, 10/1/01, AMBAC Insured 267,540
300,000 Milan Area Schools GO Bonds, 5.00%, 5/1/13 287,622
100,000 Morely Stanwood Community School GO Bonds,
5.15%, 5/1/07, FGIC Insured 101,912
250,000 Mount Pleasant School District GO Bonds, 5.65%,
5/1/05 262,893
500,000 Oakland County Economic Development Corporation
Limited Obligation Revenue Bonds, Cranbrook
Educational Community, 6.375%, 11/1/14 548,175
50,000 Southfield Economic Development Authority
Corporation VRDN, 5.95%, 5/15/11, Fireman's
Insurance Co. Insured 50,000
235,000 University of Michigan Revenue Bonds, 5.60%,
11/15/11 241,312
205,000 Zeeland Public Schools GO Bonds, 5.70%, 5/1/07,
MBIA Insured 216,332
TOTAL INVESTMENTS (Cost $4,963,151) - 98.9% 5,215,493
Other assets and liabilities, net - 1.1% 57,785
Net Assets - 100% $5,273,278
See notes to financial statements.
<PAGE>
NEW YORK PORTFOLIO
STATEMENT OF INVESTMENTS
JUNE 30, 1997
Principal
Amount Value
New York Municipal Obligations - 97.6%
$300,000 Buffalo GO Bonds, 5.20%, 2/1/10, AMBAC
Insured $298,398
150,000 Dundee Central School District GO Bonds, 5.70%,
6/15/07, AMBAC Insured 159,619
Glen Cove GO Bonds:
225,000 5.50%, 1/15/03 232,026
215,000 5.60%, 1/15/04 222,723
215,000 5.70%, 1/15/05 223,941
180,000 Metropolitan Transit Authority Commuter
Facility Revenue
Bonds, Series A, 5.70%, 7/1/02, MBIA Insured 189,333
New York City GO Bonds:
200,000 Series D, 5.70%, 8/15/06 205,212
200,000 Series E, 5.75%, 2/15/09 202,788
49,617 New York City Hospital Corporation Bronx Lease,
5.75%, 12/1/97 49,630
100,000 New York City Industrial Development Agency
Civil Facility Revenue Bonds, USTA National Tennis
Center, 7.75%, 11/15/02, FSA Insured 114,853
500,000 New York State Environmental Pollution Control
Revenue Bonds, 5.70%, 1/15/12 516,795
200,000 New York State Dormitory Authority Revenue
Bonds, 5.50%, 5/15/07 203,648
200,000 New York State Dormitory Authority Revenue
Bonds for City University, 5.625%, 7/1/16 199,192
75,000 New York State GO Bonds, 5.75%, 9/15/01 78,639
210,000 New York State GO Bonds, Series B, 6.25%, 8/15/05 229,683
100,000 New York State Local Assistance Corp. Revenue
Bonds, 6.00%, 4/1/14 106,209
100,000 New York State Power Authority Revenue Bonds,
6.50%, 1/1/08 111,967
240,000 New York State Thruway Authority Highway
Revenue Bonds, Series B, 5.375%, 4/1/02, FGIC Insured 248,671
110,000 New York State Urban Development Corp. Revenue
Bonds, 5.60%, 1/1/07 112,769
150,000 Oneida County GO Bonds, 5.70%, 3/15/01 154,729
915,000 Orange County Industrial Development Authority
VRDN, 5.61%, 12/1/05, LOC: Summit Bank 915,000
500,000 Oyster Bay GO Bonds, 5.00%, 2/15/10 494,900
150,000 Suffolk County Industrial Development Agency
Bonds, 6.00%, 2/1/08, FGIC Insured 162,464
275,000 Triborough Building and Tunnel Revenue Bonds,
5.00%, 1/1/07 276,652
140,000 Westchester County GO Bonds, 6.70%, 2/1/01 151,146
500,000 Westchester County Industrial Development
Agency Civic Facility Revenue Bonds, 6.25%, 4/1/05 512,180
Total Municipal Obligations (Cost $6,201,164) 6,373,167
Contracts Value
Options Purchased - 0.0%
15 Put Options on September U.S. Treasury Bond
Futures, Expiration 8/23/97, Strike Price 104 $703
Total Options (Premium $16,790) 703
TOTAL INVESTMENTS (Cost $6,217,954) -97.6% 6,373,870
Other assets and liabilities, net -2.4% 153,775
Net Assets - 100% $6,527,645
See notes to financial statements.
<PAGE>
PENNSYLVANIA PORTFOLIO
STATEMENT OF INVESTMENTS
JUNE 30, 1997
Principal
Amount Value
Municipal Obligations - 95.1%
Pennsylvania - 92.8%
$170,000 Allegheny County GO Bonds, Series
C-42, 5.00%, 10/1/07 $170,785
100,000 Allegheny County Higher Education Building
Authority Revenue Bonds, Duquesne University
Project, 6.50%, 3/1/10, AMBAC Insured 113,139
230,000 Allegheny County Higher Education Building
Authority Revenue Bonds, Series A, 6.00%, 2/15/08 236,902
165,000 Bucks County GO Bonds, Series A, 6.00%, 3/1/01 174,073
250,000 Cambria Township Water Authority Industrial
User Revenue Bonds, 6.00%, 12/1/12, LOC: Banque Paribas 259,282
130,000 Central Bucks County School District GO Bonds,
6.40%, 2/1/01 138,666
175,000 Chester County GO Bonds, 5.50%,12/15/07 180,945
180,000 Delaware County Memorial Hospital Revenue
Bonds, 5.25%, 8/15/07, MBIA Insured 184,250
90,000 Erie County GO Bonds, Series B, 6.75%, 9/1/16,
(Pre-refunded 9/1/01 @ 100) 98,041
100,000 Latrobe Industrial Development Authority
Revenue Bonds, St. Vincent College, 6.40%, 5/1/06 107,450
50,000 Media Borough Water Revenue Bonds, 5.60%,
1/1/01, MBIA Insured 51,944
100,000 Montgomery County Industrial Development
Revenue VRDN, 4.05%, 12/1/13, LOC: PNC Bank 100,000
Pennsylvania Housing Finance Agency Revenue
Bonds, Series C-40:
40,000 5.85%, 4/1/02 41,367
35,000 5.85%, 10/1/02 36,307
75,000 Pennsylvania Infrastructure Investment
Authority Revenue Bonds, 5.75%, 9/1/99 77,319
120,000 Pennsylvania Intergovernmental Co-op Revenue
Bonds, 5.25%, 6/15/06, FGIC Insured 122,332
100,000 Pennsylvania State GO Bonds, Series I, 5.30%, 5/1/06 102,906
75,000 Pennsylvania State Industrial Development
Authority Revenue Bonds, 6.00%, 1/1/05, AMBAC Insured 80,566
65,000 Peters Township School District GO Bonds,
6.00%, 5/15/04, FGIC Insured 68,610
300,000 Philadelphia Airport Revenue Bonds, 5.75%,
6/15/08, AMBAC Insured 313,641
195,000 Philadelphia Hospital and Higher Education
Revenue Bonds, Belmont Center, 5.75%, 10/1/07 200,903
85,000 Philadelphia Hospital and Higher Education
Revenue Bonds, Community College, Series B, 5.40%,
5/1/02, MBIA Insured 88,136
250,000 Philadelphia MFH Revenue VRDN, 4.45%, 12/1/09,
LOC: Marine Midland Bank 250,000
150,000 Philadelphia Water and Wastewater Revenue
Bonds, 5.50%, 6/15/15, FSA Insured 148,311
100,000 Pittsburgh GO Bonds, Series A, 5.70%, 9/1/08,
MBIA Insured 103,740
175,000 Pittsburgh Urban Redevelopment Authority
Revenue Bonds, 6.00%, 8/1/08 176,834
35,000 Ridley Park Hospital Authority Revenue Bonds,
Tayler Hospital, 5.125%, 12/1/98 34,984
Principal
Amount Value
$110,000 Seneca Valley School District GO
Bonds, 5.80%, 2/15/11, FGIC Insured $113,776
Sharon Regional Health Systems Authority
Revenue Bonds:
100,000 5.50%, 12/1/97 100,478
220,000 5.75%, 12/1/98 223,058
75,000 State Public School Building Authority Revenue
Bonds, Harrisburg Area Community College, 6.70%,
10/01/00, MBIA Insured 79,750
125,000 Wilkes Barre Area School District GO Bonds,
5.75%, 4/1/06, FGIC Insured 132,034
Other - 2.3%
105,000 Puerto Rico Commonwealth Highway and
Transportation Revenue Bonds, 5.00%, 7/1/02 106,581
TOTAL INVESTMENTS (Cost $4,242,953) - 95.1% 4,417,110
Other assets and liabilities, net - 4.9% 228,749
Net Assets - 100% $4,645,859
See notes to financial statements.
<PAGE>
VIRGINIA PORTFOLIO
STATEMENT OF INVESTMENTS
JUNE 30, 1997
Principal
Amount Value
Virginia Municipal Obligations - 97.6%
$550,000 Arlington County Community Housing
Finance Revenue Bonds, 6.00%, 6/1/09 $567,556
300,000 Arlington County GO Bonds, 5.50%, 8/1/06 314,310
450,000 Chesapeake Bay Bridge and Tunnel Revenue Bonds,
5.50%, 7/1/06, FGIC Insured 471,802
300,000 Chesapeake County GO Bonds, 5.60%, 5/1/00 310,776
Chesapeake County Industrial Development Authority
Revenue Bonds, MBIA Insured:
110,000 6.00%, 6/1/07 119,502
175,000 6.00%, 6/1/08 189,733
500,000 Fairfax County Industrial Development Authority
Revenue Bonds, Inova Health Systems Project,
5.50%, 8/15/08 518,510
400,000 Hampton City GO Bonds, 5.90%, 1/15/07 430,504
500,000 Hanover County Industrial Development Authority
Revenue Bonds, 5.30%, 8/15/07, MBIA Insured 515,785
1,400,000 Henrico County Industrial Development Authority
Revenue VRDN, 4.95%, 10/1/00, LOC: Tokai Bank 1,400,000
200,000 Loudoun County GO Bonds, Series A, 5.40%, 10/1/06 207,668
Loudoun County COP, FSA Insured:
200,000 6.10%, 3/1/02 213,500
190,000 6.30%, 3/1/04 206,537
Metropolitan Washington Airport Authority Revenue Bonds,
Series A, MBIA Insured:
100,000 6.10%, 10/1/01 106,162
300,000 5.60%, 10/1/06 314,538
300,000 Norfolk GO Bonds, Series A, 5.40%, 2/1/02 311,694
195,000 Norfolk Industrial Development Revenue Bonds, Sentara
Hospital Project, 6.60%, 11/1/00 207,831
500,000 Northern Virginia Transportation District
Revenue Bonds, Series A, 5.125%, 5/15/10 495,970
300,000 Peninsula Ports Health System Health Revenue Bonds,
6.00%, 7/1/01 315,756
200,000 Richmond GO Bonds, Series A, 4.80%, 1/15/01 202,790
450,000 Riverside Regulatory Jail Authority Revenue
Bonds, 5.70%, 7/1/08, MBIA Insured 474,196
435,000 Virginia College Building Authority Revenue Bonds,
Hampton University Project, 5.20%, 4/1/02 446,183
500,000 Virginia College Building Authority Revenue Bonds,
Twenty First Century College Project, 5.00%, 8/1/09 495,950
340,000 Virginia Beach GO Bonds, 5.40%, 7/15/08 355,419
Virginia State Housing Authority Revenue Bonds:
110,000 6.875%, 1/1/17 110,237
200,000 Series A, 6.50%, 7/1/03 210,838
70,000 Series A, 6.90%, 7/1/07 286,370
400,000 Series C, 6.00%, 1/1/03 412,828
120,000 Series C, 6.75%, 7/1/11 125,574
500,000 Virginia State MFH Revenue Bonds, 5.85%, 5/1/08 508,315
Principal
Amount Value
Virginia State Public Building Authority
Revenue Bonds:
$100,000 Series A, 5.80%, 8/1/02 $105,671
400,000 Series A, 6.00%, 8/1/03 425,640
230,000 Series B, 5.625%, 8/1/02 241,743
Virginia State Public School Authority Revenue
Bonds, Series A:
200,000 6.00%, 8/1/01 211,994
200,000 6.00%, 8/1/03 214,928
265,000 Virginia State Transportation Board Revenue
Bonds, Route 28 Project, 5.75%, 4/1/00 274,996
320,000 Washington County Industrial Development Revenue Bonds,
5.625%, 7/1/02 330,611
300,000 West Point Industrial Development Authority
Revenue Bonds, Chesapeake Corporation, 6.375%, 5/1/03 301,227
300,000 Winchester Industrial Development Authority Revenue Bonds,
Shenandoah University, 6.05%, 10/1/05, Asset Guaranty
Insured 319,810
Total Municipal Obligations (Cost $12,827,665) 13,273,454
Contracts
Options Purchased - 0.0%
25 Put Options on September U.S. Treasury Bond Futures,
Expiration 8/23/97, Strike Price 104 1,172
Total Options (Premium $27,983) 1,172
TOTAL INVESTMENTS (Cost $12,855,648) -97.6% 13,274,626
Other assets and liabilities, net -2.4% 323,224
Net Assets - 100% $13,597,850
Explanation of Guarantee: Abbreviations:
GA - Guarantee Agreement AMBAC - American Municipal Bond Assurance Corp.
IA - Investment Agreement COP - Certificate of Participation
INSUR - Insurance FGIC - Financial Guarantee Insurance Company
LOC - Letter of Credit FSA - Financial Security Advisor
G0 - General Obligation
MBIA - Municipal Bond Insurance Association
MFH - Multi-Family Housing
VRDN - Variable Rate Demand Notes
See notes to financial statements.
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1997
<TABLE>
<C> <C> <C>
Assets
National Arizona California
Portfolio Portfolio Portfolio
Investment in securities, at value $47,018,063 $2,216,858 32,904,971
Cash 77,340 283,770 422,961
Receivable for shares sold 17,048 - 11,461
Interest receivable 730,168 60,103 413,100
Other assets 13,475 1,006 2,615
Total assets 47,856,094 2,561,737 33, 755,108
Liabilities
Payable for shares redeemed 142,489 - 841
Payable to Calvert Asset Management Co., Inc. 25,808 1,311 17,146
Payable to Calvert Administrative Services Co. 3,933 210 2,770
Payable to Calvert Shareholder Services, Inc. 2,052 138 1,511
Accrued expenses and other liabilities 20,317 1,352 15,353
Total liabilities 194,599 3,011 37,621
Net assets $47,661,495 2,558,726 $33,717,487
Net Assets Consist of:
Paid-in capital applicable to 4,519,122,
508, 747, and 3,237,964 outstanding shares
of common stock, for the National, Arizona
and California portfolios respectively,
$0.01 par value with 250,000,000 shares
authorized for each portfolio $46,494,722 $2,498,953 $33,598,217
Undistributed net investment income 80,819 9,705 66,445
Accumulated net realized gain
(losses) on investments (944,303) (25,481) (1,061,222)
Net unrealized appreciation(depreciation)
on investments 2,030,257 75,549 1,114,047
Net assets $47,661,495 $2,558,726 $33,717,487
Net Asset Value Per Share $10.55 $5.03 $10.41
</TABLE>
See notes to financial statements.
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1997
<TABLE>
<C> <C> <C>
Florida Maryland Michigan
Portfolio Portfolio Portfolio
Assets
Investment in securities, at value $6,839,022 $11,513,031 $5,215,493
Cash 56,518 191,257 8,092
Receivable for shares sold 55 1,359 179
Interest receivable 80,160 152,125 55,150
Other assets 227 2,145 454
Total assets 6,975,982 11,859,917 5,279,368
Liabilities
Payable for shares redeemed - 54,066 -
Payable to Calvert Asset Management Co., Inc. 3,380 6,060 2,716
Payable to Calvert Administrative Services Co. 553 970 438
Payable to Calvert Shareholder Services, Inc. 136 676 225
Accrued expenses and other liabilities 907 5,341 2,711
Total liabilities 4,976 67,113 6,090
Net assets $6,971,006 $11,792,804 $5,273,278
Net Assets Consist of:
Paid-in capital applicable to 1,387,063 shares
of beneficial interest, unlimited number
of no par shares authorized for
the Florida Portfolio $6,970,517
Paid-in capital applicable to 2,341,950, and
1,029,280 outstanding shares of common
stock, for the Maryland and Michigan
portfolios respectively, $0.01 par value with
250,000,000 shares authorized for
each portfolio $11,707,784 $5,269,872
Undistributed net investment income 4,903 29,295 3,249
Accumulated net realized gain
(losses) on investments (166,218) (331,656) (252,185)
Net unrealized appreciation (depreciation)
on investments 161,804 387,381 252,342
Net assets $6,971,006 $11,792,804 $5,273,278
Net Asset Value Per Share $5.03 $5.04 $5.12
</TABLE>
See notes to financial statements.
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1997
<TABLE>
<C> <C> <C>
New York Pennsylvania Virginia
Portfolio Portfolio Portfolio
Assets
Investment in securities, at value $6,373,870 $4,417,110 $13,274,626
Cash 37,345 178,501 36,555
Receivable for securities sold - - 5,000
Receivable for shares sold 275 992 58,781
Interest receivable 123,219 54,015 245,777
Other assets 686 220 612
Total assets 6,535,395 4,650,838 13,621,351
Liabilities
Payable for shares redeemed 249 - 9,262
Payable to Calvert Asset Management Co., Inc. 3,382 2,372 6,915
Payable to Calvert Administrative Services Co. 540 381 1,119
Payable to Calvert Shareholder Services, Inc. 346 193 564
Accrued expenses and other liabilities 3,233 2,033 5,641
Total liabilities 7,750 4,979 23,501
Net assets $6,527,645 $4,645,859 $13,597,850
Net Assets Consist of:
Paid-in capital applicable to 1,282,657,
912,262, and 2,670,132 outstanding shares
of common stock, for the New York,
Pennsylvania and Virginia portfolios
respectively, $0.01 par value with
250,000,000 shares authorized
for each portfolio $6,385,342 $4,527,365 $13,395,856
Undistributed net investment income 7,185 29,871 19,031
Accumulated net realized gain
(losses) on investments (20,798) (85,534) (236,015)
Net unrealized appreciation (depreciation)
on investments 155,916 174,157 418,978
Net assets $6,527,645 $4,645,859 $13,597,850
Net Asset Value Per Share $5.09 $5.09 $5.09
</TABLE>
See notes to financial statements.
<PAGE>
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 1997
Net Investment Income
<TABLE>
<C> <C> <C>
National Arizona California
Portfolio Portfolio Portfolio
Investment Income
Interest income $1,340,308 $63,129 $959,737
Expenses
Investment advisory fee 139,138 7,472 100,792
Transfer agency fees and expenses 12,657 857 9,593
Directors' fees and expenses 3,557 203 2,684
Administrative fees 23,189 1,245 16,799
Custodian fees 6,920 2,862 5,813
Registration fees 17,187 883 720
Reports to shareholders 9,964 853 7,982
Professional fees 12,795 693 9,286
Miscellaneous 3,005 332 2,281
Total expenses 228,412 15,400 155,950
Fees paid indirectly (6,920) (2,862) (5,813)
Net expenses 221,492 12,538 150,137
Net Investment Income 1,118,816 50,591 809,600
Realized and Unrealized Gain
(Loss) on Investments
Net realized gain (loss) on securities (32,526) (593) 11,500
Change in unrealized appreciation or
depreciation (26,399) (1,276) (138,570)
Net Realized and Unrealized
Gain (Loss) on Investments (58,925) (1,869) (127,070)
Increase (Decrease) in
Net Assets Resulting
from Operations $1,059,891 $48,722 $682,530
</TABLE>
See notes to financial statements.
<PAGE>
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 1997
Net Investment Income
Investment Income
<TABLE>
<C> <C> <C>
Florida Maryland Michigan
Portfolio Portfolio Portfolio
Interest income $159,850 $320,073 $147,462
Expenses
Investment advisory fee 18,425 34,793 16,359
Transfer agency fees and expenses 727 3,993 1,410
Directors' fees and expenses 445 916 436
Administrative fees 3,071 5,799 2,727
Custodian fees 3,297 3,785 2,573
Registration fees 80 1,093 665
Reports to shareholders 747 2,78 8 1,626
Professional fees 327 3,199 1,509
Miscellaneous 344 1,140 446
Total expenses 27,463 57,506 27,751
Fees paid indirectly (3,297) (3,785) (2,573)
Net expenses 24,166 53,721 25,178
Net Investment Income 135,684 266,352 122,284
Realized and Unrealized Gain
(Loss) on Investments
Net realized gain (loss) on securities (12,367) 51,388 1,009
Change in unrealized appreciation or
depreciation 10,421 (45,185) 15,086
Net Realized and Unrealized
Gain (Loss) on Investments (1,946) 6,203 16,095
Increase (Decrease) in
Net Assets Resulting
from Operations $133,738 $272,555 $138,379
</TABLE>
See notes to financial statements.
<PAGE>
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 1997
Net Investment Income
Investment Income
<TABLE>
<C> <C> <C>
Florida Maryland Michigan
Portfolio Portfolio Portfolio
Interest income $168,924 $119,700 $345,135
Expenses
Investment advisory fee 18,698 13,047 38,538
Transfer agency fees and expenses 2,415 1,227 3,480
Directors' fees and expenses 498 334 979
Administrative fees 3,116 2,174 6,423
Custodian fees 3,641 4,024 5,365
Registration fees 542 31 84
Reports to shareholders 2,009 1,099 2,761
Professional fees 1,721 1,201 3,542
Miscellaneous 590 441 1,201
Total expenses 33,230 23,578 62,373
Fees paid indirectly (3,641) (4,024) (5,365)
Net expenses 29,589 19,554 57,008
Net Investment Income 139,335 100,146 288,127
Realized and Unrealized Gain
(Loss) on Investments
Net realized gain (loss) on securities 1,136 3,242 (22,145)
Change in unrealized appreciation or
depreciation 7,885 4,719 9,657
Net Realized and Unrealized
Gain (Loss) on Investments 9,021 7,961 (12,488)
Increase (Decrease) in
Net Assets Resulting
from Operations $148,356 $108,107 $275,639
</TABLE>
See notes to financial statements.
<PAGE>
NATIONAL PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<S> <C> <C>
Six Months
Ended Year Ended
June 30, 1997 Dec. 31, 1997
Increase (Decrease) in Net Assets
Operations
Net investment income $1,118,816 $2,162,414
Net realized gain (loss) (32,526) 154,953
Change in unrealized appreciation or
depreciation (26,399) (492,296)
Increase (Decrease) in Net Assets
Resulting from Operations 1,059,891 1,825,071
Distributions to shareholders from
Net investment income:
Class A shares (1,119,233) (1,940,913)
Class C shares - (203,415)
Total distributions (1,119,233) (2,144,328)
Capital share transactions
Shares sold:
Class A shares 5,230,329 13,543,646
Class C shares - 3,114,924
Reinvestment of distributions:
Class A shares 921,775 1,548,570
Class C shares - 199,801
Shares redeemed:
Class A shares (4,043,204) (9,392,644)
Class C shares - (9,607,268)
Total capital share transactions 2,108,900 (592,971)
Total Increase (Decrease) in Net Assets 2,049,558 (912,228)
Net Assets
Beginning of period 45,611,937 46,524,165
End of period (including undistributed
net investment income of $80,819 and $81,236,
respectively) $47,661,495 $45,611,937
Capital Share Activity
Shares sold:
Class A shares 497,061 1,286,733
Class C shares - 299,658
Reinvestment of distributions:
Class A shares 87,960 147,867
Class C shares - 19,197
Shares redeemed:
Class A shares (384,869) (895,904)
Class C shares - (921,429)
Total capital share activity 200,152 (63,878)
</TABLE>
See notes to financial statements.
<PAGE>
ARIZONA PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<S> <C> <C>
Six Months
Ended Year Ended
June 30, 1997 Dec. 31, 1997
Increase (Decrease) in Net Assets
Operations
Net investment income $50,591 $104,228
Net realized gain (loss) (593) 1,822
Change in unrealized appreciation or
depreciation 1,276) (24,832)
Increase (Decrease) in Net Assets
Resulting from Operations 48,722 81,218
Distributions to shareholders from
Net investment income:
Class A shares (51,338) (85,015)
Class C shares - (17,574)
Total distributions (51,338) (102,589)
Capital share transactions
Shares sold:
Class A shares 162,762 919,546
Class C shares - 64,050
Reinvestment of distributions:
Class A shares 47,386 72,460
Class C shares - 17,573
Shares redeemed:
Class A shares (283,608) (390,378)
Class C shares - (816,670)
Total capital share transactions (73,460) (133,419)
Total Increase (Decrease) in Net Assets (76,076) (154,790)
Net Assets
Beginning of period 2,634,802 2,789,592
End of period (including undistributed net
investment income of $9,705 and $10,452,
respectively) $2,558,726 $2,634,802
Capital Share Activity
Shares sold:
Class A shares 34,529 183,666
Class C shares - 12,912
Reinvestment of distributions:
Class A shares 9,494 14,476
Class C shares - 3,518
Shares redeemed:
Class A shares (58,897) (77,803)
Class C shares - (163,192)
Total capital share activity (14,874) (26,423)
</TABLE>
See notes to financial statements.
<PAGE>
CALIFORNIA PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<S> <C> <C>
Six Months
Ended Year Ended
June 30, 1997 Dec. 31, 1997
Increase (Decrease) in Net Assets
Operations
Net investment income $809,600 $1,627,836
Net realized gain (loss) 11,500 99,571
Change in unrealized appreciation
or depreciation (138,570) (367,520)
Increase (Decrease) in Net Assets
Resulting from Operations 682,530 1,359,887
Distributions to shareholders from
Net investment income:
Class A shares (790,152) (1,517,194)
Class C shares - (117,484)
Total distributions (790,152) (1,634,678)
Capital share transactions
Shares sold:
Class A shares 1,754,552 9,255,621
Class C shares - 1,279,993
Reinvestment of distributions:
Class A shares 563,288 1,074,634
Class C shares - 114,171
Shares redeemed:
Class A shares (4,186,161) (8,831,034)
Class C shares - (5,441,016)
Total capital share transactions (1,868,321) (2,547,631)
Total Increase (Decrease) in Net Assets (1,975,943) (2,822,422)
Net Assets
Beginning of period 35,693,430 38,515,852
End of period (including undistributed net
investment income of $66,445 and $46,997,
respectively) $33,717,487 $35,693,430
Capital Share Activity
Shares sold:
Class A shares 168,557 889,558
Class C shares - 124,022
Reinvestment of distributions:
Class A shares 54,464 103,600
Class C shares - 11,072
Shares redeemed:
Class A shares (403,935) (850,135)
Class C shares - (526,009)
Total capital share activity (180,914) (247,892)
</TABLE>
See notes to financial statements.
<PAGE>
FLORIDA PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<S> <C> <C>
Six Months
Ended Year Ended
June 30, 1997 Dec. 31, 1997
Increase (Decrease) in Net Assets
Operations
Net investment income $135,684 $215,654
Net realized gain (loss) (12,367) 592
Change in unrealized appreciation
or depreciation 10,421 (12,347)
Increase (Decrease) in Net Assets
Resulting from Operations 133,738 203,899
Distributions to shareholders from
Net investment income:
Class A shares (136,834) (205,633)
Class C shares - (10,301)
Total distributions (136,834) (215,934)
Capital share transactions
Shares sold:
Class A shares 2,059,841 1,924,160
Class C shares - 53,368
Reinvestment of distributions:
Class A shares 106,389 146,384
Class C shares - 9,206
Shares redeemed:
Class A shares (708,516) (440,515)
Class C shares - (457,422)
Total capital share transactions 1,457,714 1,235,181
Total Increase (Decrease) in Net Assets 1,454,618 1,223,146
Net Assets
Beginning of period 5,516,388 4,293,242
End of period (including undistributed net
investment income of $4,903 and $6,053,
respectively) $6,971,006 $5,516,388
Capital Share Activity
Shares sold:
Class A shares 402,665 387,621
Class C shares - 10,776
Reinvestment of distributions:
Class A shares 21,320 29,358
Class C shares - 1,853
Shares redeemed:
Class A shares (135,255) (87,903)
Class C shares - (92,042)
Total capital share activity 288,730 249,663
</TABLE>
See notes to financial statements.
<PAGE>
MARYLAND PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<S> <C> <C>
Six Months
Ended Year Ended
June 30, 1997 Dec. 31, 1997
Increase (Decrease) in Net Assets
Operations
Net investment income $266,352 $533,141
Net realized gain (loss) 51,388 2,279
Change in unrealized appreciation
or depreciation (45,185) (106,935)
Increase (Decrease) in Net Assets
Resulting from Operations 272,555 428,485
Distributions to shareholders from
Net investment income:
Class A shares (263,322) (427,812)
Class C shares - (91,849)
Total distributions (263,322) (519,661)
Capital share transactions
Shares sold:
Class A shares 1,033,834 4,655,361
Class C shares - 1,091,676
Reinvestment of distributions:
Class A shares 221,390 361,985
Class C shares - 79,464
Shares redeemed:
Class A shares (1,494,660) (2,357,802)
Class C shares - (3,636,207)
Total capital share transactions (239,436) 194,477
Total Increase (Decrease) in Net Assets (230,203) 103,301
Net Assets
Beginning of period 12,023,007 11,919,706
End of period (including undistributed net
investment income of $29,295 and $26,265,
respectively) $11,792,804 $12,023,007
Capital Share Activity
Shares sold:
Class A shares 206,725 929,544
Class C shares - 217,973
Reinvestment of distributions:
Class A shares 44,282 72,459
Class C shares - 16,019
Shares redeemed:
Class A shares (297,438) (473,179)
Class C shares - (731,705)
Total capital share activity (46,431) 31,111
</TABLE>
See notes to financial statements.
<PAGE>
MICHIGAN PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<S> <C> <C>
Six Months
Ended Year Ended
June 30, 1997 Dec. 31, 1997
Increase (Decrease) in Net Assets
Operations
Net investment income $122,284 $249,943
Net realized gain (loss) 1,009 (526)
Change in unrealized appreciation
or depreciation 15,086 (14,620)
Increase (Decrease) in Net Assets
Resulting from Operations 138,379 234,797
Distributions to shareholders from
Net investment income:
Class A shares 122,418) (214,870)
Class C shares - (42,186)
Total distributions 122,418) (257,056)
Capital share transactions
Shares sold:
Class A shares 221,688 1,768,456
Class C shares - 413,783
Reinvestment of distributions:
Class A shares 103,923 184,760
Class C shares - 38,664
Shares redeemed:
Class A shares (872,093) (703,139)
Class C shares - 1,928,904)
Total capital share transactions (546,482) (226,380)
Total Increase (Decrease) in Net Assets (530,521) (248,639)
Net Assets
Beginning of period 5,803,799 6,052,438
End of period (including undistributed net
investment income of $3,249 and $3,383,
respectively) $5,273,278 $5,803,799
Capital Share Activity
Shares sold:
Class A shares 36,110 350,281
Class C shares - 82,385
Reinvestment of distributions:
Class A shares 20,456 36,549
Class C shares - 7,685
Shares redeemed:
Class A shares (164,564) (139,386)
Class C shares - (382,779)
Total capital share activity (107,998) (45,265)
</TABLE>
See notes to financial statements.
<PAGE>
NEW YORK PORTFOLIIO
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<S> <C> <C>
Six Months
Ended Year Ended
June 30, 1997 Dec. 31, 1997
Increase (Decrease) in Net Assets
Operations
Net investment income $139,335 $252,546
Net realized gain (loss) 1,136 (22,548)
Change in unrealized appreciation
or depreciation 7,885 1,084
Increase (Decrease) in Net Assets
Resulting from Operations 148,356 231,082
Distributions to shareholders from
Net investment income:
Class A shares (138,733) (180,596)
Class C shares - (69,116)
Net realized gain on investments:
Class A shares - (4,252)
Class C shares - -
Total distributions (138,733) (253,964)
Capital share transactions
Shares sold:
Class A shares 1,025,228 3,815,003
Class C shares - 1,146,085
Reinvestment of distributions:
Class A shares 130,262 163,741
Class C shares - 67,745
Shares redeemed:
Class A shares (855,423) (1,337,801)
Class C shares - (3,578,862)
Total capital share transactions 300,067 275,911
Total Increase (Decrease) in Net Assets 309,690 253,029
Net Assets
Beginning of period 6,217,955 5,964,926
End of period (including undistributed net
investment income of $7,185 and $6,583,
respectively) $6,527,645 $6,217,955
Capital Share Activity
Shares sold:
Class A shares 204,088 755,503
Class C shares - 228,187
Reinvestment of distributions:
Class A shares 25,785 32,402
Class C shares - 13,474
Shares redeemed:
Class A shares (168,904) (264,199)
Class C shares - (709,949)
Total capital share activity 60,969 55,418
</TABLE>
See notes to financial statements.
<PAGE>
PENNSYLVANIA PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<S> <C> <C>
Six Months
Ended Year Ended
June 30, 1997 Dec. 31, 1997
Increase (Decrease) in Net Assets
Operations
Net investment income $100,146 $190,360
Net realized gain (loss) 3,242 (12,540)
Change in unrealized appreciation
or depreciation 4,719 (22,000)
Increase (Decrease) in Net Assets
Resulting from Operations 108,107 155,820
Distributions to shareholders from
Net investment income:
Class A shares (95,037) (138,021)
Class C shares - (42,430)
Total distributions (95,037) (180,451)
Capital share transactions
Shares sold:
Class A shares 471,146 2,352,099
Class C shares - 259,159
Reinvestment of distributions:
Class A shares 71,935 97,735
Class C shares - 40,440
Shares redeemed:
Class A shares (396,408) (480,482)
Class C shares - (2,028,428)
Total capital share transactions 146,673 240,523
Total Increase (Decrease) in Net Assets 159,743 215,892
Net Assets
Beginning of period 4,486,116 4,270,224
End of period (including undistributed net
investment income of $29,871 and $24,762,
respectively) $4,645,859 $4,486,116
Capital Share Activity
Shares sold:
Class A shares 80,976 464,737
Class C shares - 51,179
Reinvestment of distributions:
Class A shares 14,231 19,408
Class C shares - 8,037
Shares redeemed:
Class A shares (66,091) (95,924)
Class C shares - (401,715)
Total capital share activity 29,116 45,722
</TABLE>
See notes to financial statements.
<PAGE>
VIRGINIA PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<S> <C> <C>
Six Months
Ended Year Ended
June 30, 1997 Dec. 31, 1997
Increase (Decrease) in Net Assets
Operations
Net investment income $288,127 $501,050
Net realized gain (loss) (22,145) 68,788
Change in unrealized appreciation
or depreciation 9,657 (123,053)
Increase (Decrease) in Net Assets
Resulting from Operations 275,639 446,785
Distributions to shareholders from
Net investment income:
Class A shares (285,975) (397,746)
Class C shares - (100,982)
Total distributions (285,975) (498,728)
Capital share transactions
Shares sold:
Class A shares 1,421,938 5,790,886
Class C shares - 817,861
Reinvestment of distributions:
Class A shares 259,948 348,686
Class C shares - 100,737
Shares redeemed:
Class A shares (691,275) (805,200)
Class C shares - (4,085,103)
Total capital share transactions 990,611 2,167,867
Total Increase (Decrease) in Net Assets 980,27 2,115,924
Net Assets
Beginning of period 12,617,575 10,501,651
End of period (including undistributed net
investment income of $19,031 and $16,879,
respectively) $13,597,850 $12,617,575
Capital Share Activity
Shares sold:
Class A shares 280,410 1,142,057
Class C shares - 161,108
Reinvestment of distributions:
Class A shares 51,298 68,920
Class C shares - 19,934
Shares redeemed:
Class A shares (136,591) (158,926)
Class C shares - (806,106)
Total capital share activity 195,117 426,987
</TABLE>
See notes to financial statements.
<PAGE>
Notes To Financial Statements
Note A-Significant Accounting Policies
General: The Calvert Municipal Fund is comprised of eight
Municipal Intermediate Portfolios: National, Arizona,
California, Maryland, Michigan, New York, Pennsylvania, and
Virginia. The First Variable Rate Fund for Government Income has
one Municipal Intermediate Portfolio, Florida. Each of the
Portfolios, collectively the "Fund", are registered under the
Investment Company Act of 1940 as open-end management investment
companies. The operations of each Portfolio are accounted for
separately. Shares of each Portfolio are sold with a maximum
front-end sales charge of 2.75%. On October 29, 1996, all
outstanding Class C shares in the Fund were converted into an
equivalent value of Class A shares. This transaction was a
non-taxable exchange and no sales charge was applied to the
Class A shares issued.
Security Valuation: 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. Securities listed or traded on a
national securities exchange are valued at the last reported
sale price. 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 Fund may write or purchase options. 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.
Futures Contracts: The Fund may enter into futures contracts
agreeing to buy or sell a financial instrument for a set price
at a future date. The Fund maintains securities with a value
equal to its obligation under each contract. Initial margin
deposits of either cash or securities are made upon entering
into futures contracts; thereafter, variation margin payments
are made or received daily reflecting the change in market
value. Unrealized or realized gains and losses are recognized
based on the change in market value. Risks of futures contracts
arise from the possible illiquidity of the futures markets and
the movement in the value of the investment or in interest
rates.
Security Transactions and Investment Income: Security
transactions are accounted for on trade date. Realized gains and
losses are recorded on an identified cost basis. Interest
income, accretion of discount and amortization of premium are
recorded on an accrual basis.
Distributions to Shareholders: Distributions to shareholders
are recorded by the Fund on ex-dividend date. Dividends from net
investment income are paid monthly. Distributions from net
realized capital gains, if any, are paid at least annually.
Distributions are determined in accordance with income tax
regulations which may differ from generally accepted accounting
principles; accordingly, periodic reclassifications are made
within the Fund's capital accounts to reflect income and gains
available for distribution under income tax regulations.
Estimates: The preparation of financial statements in
conformity with generally accepted accounting principles
requires management to make estimates and assumptions that
affect the reported amount of assets and liabilities and
disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of income and
expenses during the reporting period. Actual results could
differ from those estimates.
Expense Offset Arrangements: The Fund has an arrangement with
its custodian bank whereby the custodian's fees are paid
indirectly by credits earned on the Fund'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 Fund intends to continue to qualify as
a regulated investment company under the Internal Revenue Code
and to distribute substantially all of its earnings.
NOTE B-Related Party Transactions
Calvert Asset Management Company, Inc. (the "Advisor") is
wholly-owned by Calvert Group, Ltd. ("Calvert"), which is
indirectly wholly-owned by Acacia Mutual Life Insurance Company.
The Advisor provides investment advisory services and pays the
salaries and fees of officers and affiliated Directors of the
Fund. For its services, the Advisor receives a monthly fee based
on the following annual rates of average daily net assets of
each Portfolio: .60% on the first $500 million, .50% on the next
$500 million and .40% on the excess of $1 billion.
Calvert Administrative Services Company, an affiliate of the
Advisor, provides administrative services to the Fund for an
annual fee, payable monthly, of .10% of the average daily net
assets of each Portfolio.
Calvert Distributors, Inc. (CDI), an affiliate of the Advisor,
is the distributor and principal underwriter for the Fund.
Distribution Plans, adopted by the Fund, allow the Fund to pay
the distributor for expenses and services associated with
distribution of shares. The expenses paid may not exceed .15%
annually of average daily net assets. The Distributor currently
does not charge any Distribution Plan expenses. For the six
months ended June 30, 1997, CDI received sales charges in excess
of the dealer reallowance of $6,130, $113, $9,193, ($841),
$3,224, $1,072, $894, $892, and $4,954 for the National,
Arizona, California, Florida, Maryland, Michigan, New York,
Pennsylvania, and Virginia Portfolios, respectively.
Calvert Shareholder Services, Inc., an affiliate of the Advisor,
acts as transfer, dividend disbursing and shareholder servicing
agent for the Fund.
Each Director who is not affiliated with the Advisor received an
annual fee of $20,500 plus up to $1,500 for each Board and
Committee meeting attended. Director's fees are allocated to
each of the funds served.
<PAGE>
NOTE C-Investment Activity
During the period, purchases and sales of investments, other
than short-term securities, were:
<TABLE>
<S> <C> <C> <C> <C> <C>
National Arizona California Florida Maryland
Purchases: $3,262,480 $264,649 $3,880,211 $553,651 -
Sales: 8,250,746 612,201 7,410,936 219,524 $1,254,134
</TABLE>
<TABLE>
<S> <C> <C> <C> <C>
Michigan New York Pennsylvania Virginia
Purchases: $514,474 $295,824 - -
Sales: 1,076,401 604,450 $101,354 $497,855
</TABLE>
The cost of investments owned at June 30, 1997 was substantially
the same for federal income tax and financial reporting purposes
for each Portfolio. The table below presents the components of
net unrealized appreciation (depreciation) as of June 30, 1997,
and the net realized capital loss carryforwards as of December
31, 1996 with expiration dates.
<TABLE>
<S> <C> <C> <C> <C>
Unrealized Urealized apital Loss Expiration
Appreciation Depreciation Carry Forwawrd Dates
National $2,088,804 $58,547 $943,824 2002
Arizona 75,549 - 24,887 2003
California 1,172,358 58,311 1,083,633 2003
Florida 162,453 649 153,856 2002
Maryland 390,502 3,121 383,043 2002
Michigan 252,342 - 253,194 2003
New York 172,002 16,086 21,937 2004
Pennsylvania 174,157 - 82,816 2004
Virginia 445,789 26,811 213,873 2003
</TABLE>
Capital losses may be utilized to offset current and future
capital gains until expiration.
As a cash management practice, Portfolios may sell or purchase
short-term variable rate demand notes from other Portfolios
managed by the Advisor. All transactions are executed at
independently derived prices.
<PAGE>
FINANCIAL HIGHLIGHTS - NATIONAL PORTFOLIO
<TABLE>
<S> <C> <C> <C> <C> <C>
CLASS A SHARES - PERIODS ENDED
June 30, December 31,
1997 1996 1995 1994 1993
Net asset value, beginning $10.56 $10.62 $9.81 $10.42 $10.01
Income from investment operations
Net investment income .25 .50 .51 .50 .48
Net realized and unrealized gain
(loss) (.01) (.06) .80 (.62) .45
Total from investment operations .24 .44 1.31 (.12) .93
Distributions from
Net investment income (.25) (.50) (.50) (.49) (.48)
Net realized gains - - - - (.04)
Total distributions (.25) (.50) (.50) (.49) (.52)
Total increase (decrease) in net
asset value (.01 (.06) .81 (.61) .41
Net asset value, ending $10.55 $10.56 $10.62 9.81 $10.42
Total return* 2.31% 4.32% 13.64% 1.18%) 9.47%
Ratios to average net assets:
Net investment income 4.82%(a) 4.83% 4.97% 4.88% 5.01%
Total expenses .98%(a) 1.04% .96% - -
Net expenses .96%(a) 1.01% .94% .69% .10%
Expenses reimbursed - - - .32% .45%
Portfolio turnover 8% 23% 57% 122% 162%
Net assets, ending (in thousands) $47,661 $45,612 $40,146 $36,159 $37,467
Number of shares outstanding,
ending (in thousands) 4.519 4,319 3,780 3,686 3,596
</TABLE>
<TABLE>
<S> <C> <C> <C> <C>
CLASS C SHARES - PERIODS ENDED
Class A Shares
Period Ended
December 31, October 29, December 31,
1992 1996 1995 1994
Net asset value, beginning $10.00 $10.58 $9.79 $10.28
Income from investment operations
Net investment income .13 .33 41 .34
Net realized and unrealized gain
(loss) .01 (.13) .79 (.48)
Total from investment operations .14 .20 1.20 (.14)
Distributions from
Net investment income (.13) (.33) (.41) (.35)
Total increase (decrease) in net asset
value .01 (.13) .79 (.49)
Net asset value, ending $10.01 $10.45 $10.58 $9.79
Total return* 5.40% 1.90% 12.50% (1.12%)
Ratios to average net assets:
Net investment income 5.36%(a) 3.77%(a) 4.00% 4.01%(a)
Total expenses - 2.10%(a) 1.94% -
Net expenses - 2.07%(a) 1.92% 1.71%(a)
Expenses reimbursed 4.34%(a) - - .58%(a)
Portfolio turnover 12% 17% 57% 122%
Net assets, ending (in thousands) $1,542 $5,810 $6,378 $6,067
Number of shares outstanding,
ending (in thousands) 154 556 603 620
</TABLE>
<PAGE>
FINANCIAL HIGHLIGHTS - ARIZONA PORTFOLIO
<TABLE>
<S> <C> <C> <C> <C>
PERIODS ENDED
June 30, December 31,
Class A Shares 1997 1996 1995 1994
Net asset value, beginning $5.03 $5.07 $4.71 $5.00
Income from investment operations
Net investment income .10 .19 .22 .19
Net realized and unrealized gain
(loss) on investments. - (.03) .36 (.29)
Total from investment operations .10 .16 .58 (.10)
Distributions from
Net investment income (.10) (.20) (.22) (.19)
Total increase (decrease)
in net asset value - (.04) .36 (.29)
Net asset value, ending $5.03 $5.03 $5.07 $4.71
Total return* 2.06% 3.17% 12.44% (1.84%)
Ratios to average net assets:
Net investment income 4.06%(a) 3.96% 4.43% 4.13%
Total expenses 1.24%(a) 1.31% .53% -
Net expenses 1.01%(a) 1.00% .41% .38%
Expenses reimbursed - .06% .54% .97%
Portfolio turnover 11% 18% 10% 22%
Net assets, ending
(in thousands) $2,559 $2,635 $2,045 $2,004
Number of shares outstanding,
ending (in thousands) 509 524 403 426
</TABLE>
<TABLE>
<S> <C> <C> <C>
PERIODS ENDED
October 29, December 31,
Class C Shares 1996 1995 1994
Net asset value, beginning $5.07 $4.70 $4.96
Income from investment operations
Net investment income .13 .17 .13
Net realized and unrealized gain
(loss) on investments (.07) .38 (.25)
Total from investment operations .06 .55 (.12)
Distributions from
Net investment income (.13) (.18) (.14)
Total increase (decrease) in net
asset value (.07) .37 (.26)
Net asset value, ending $5.00 $5.07 $4.70
Total return* 1.17% 11.77% (2.07%)
Ratios to average net assets:
Net investment income 3.09%(a) 3.57% 3.26%(a)
Total expenses 2.16%(a) 1.38% -
Net expenses 1.84%(a) 1.25% 1.43%(a)
Expenses reimbursed .08%(a) .73% 1.24%(a)
Portfolio turnover 18% 10% 22%
Net assets, ending (in thousands) $707 $744 $454
Number of shares outstanding,
ending (in thousands) 142 147 97
</TABLE>
<PAGE>
FINANCIAL HIGHLIGHTS - CALIFORNIA PORTFOLIO
<TABLE>
<S> <C> <C> <C> <C> <C>
CLASS A SHARES - PERIODS ENDED
June 30, December 31,
1997 1996 1995 1994 1993
Net asset value, beginning $10.44 $10.51 $9.81 $10.56 $10.24
Income from investment operations
Net investment income .25 .48 .47 .48 .53
Net realized and unrealized gain
(loss) on investments (.04) (.07) .69 (.76) .36
Total from investment operations .21 .41 1.16 (.28) .89
Distributions from
Net investment income (.24) (.48) (.46) (.47) (.53)
Net realized gains - - - - (.04)
Total distributions (.24) (.48) (.46) (.47) (.57)
Total increase (decrease)
in net asset value (.03) (.07) .70 (.75) .32
Net asset value, ending $10.41 10.44 $10.51 $9.81 $10.56
Total return* 2.06% 4.04% 12.07% 2.57%) 8.88%
Ratios to average net assets:
Net investment income 4.82%(a) 4.59% 4.59% 4.67% 5.12%
Total expenses .93%(a) .97% .91% - -
Net expenses .89%(a) .94% .89% .76% .21%
Expenses reimbursed - - - .13% .12%
Portfolio turnover 7% 25% 47% 68% 21%
Net assets, ending (in thousands) $33,717 $35,693 $34,424 $34,111 $35,726
Number of shares outstanding,
ending (in thousands) 3,238 3,419 3,276 3,476 3,383
</TABLE>
<TABLE>
<S> <C> <C> <C> <C>
CLASS C SHARES - PERIODS ENDED
Class A Shares
Period Ended
December 31, October 29, December 31,
1992 1996 1995 1994
Net asset value, beginning $10.00 $10.47 $9.79 $10.40
Income from investment operations
Net investment income .29 .31 .38 .31
Net realized and unrealized gain
(loss) on investments .24 (.10) .68 (.59)
Total from investment operations .53 .21 1.06 (.28)
Distributions from
Net investment income (.29) (.32) (.38) (.33)
Total increase (decrease) in net
asset value .24 (.11) .68 (.61)
Net asset value, ending $10.24 $10.36 $10.47 $9.79
Total return* 10.00% 2.02% 10.99% (2.42%)
Ratios to average net assets:
Net investment income 5.24%(a) 3.60%(a) 3.67% 3.60%(a)
Total expenses - 1.92%(a) 1.82% -
Net expenses - 1.89%(a) 1.80% 1.86%(a)
Expenses reimbursed .38%(a) - - .38%(a)
Portfolio turnover 3% 20% 47% 68%
Net assets, ending (in thousands) $16,046 $3,415 $4,092 $3,000
Number of shares outstanding,
ending (in thousands) 1,567 330 391 307
</TABLE>
<PAGE>
FINANCIAL HIGHLIGHTS - FLORIDA PORTFOLIO
<TABLE>
<S> <C> <C> <C> <C>
PERIODS ENDED
June 30, December 31,
Class A Shares 1997 1996 1995 1994
Net asset value, beginning $5.02 $5.06 $4.67 $5.00
Income from investment operations
Net investment income .11 .21 .24 .21
Net realized and unrealized gain
(loss)on investments .01 (.04) .38 (.33)
Total from investment operations .12 .17 .62 (.12)
Distributions from
Net investment income (.11) (.21) (.23) (.21)
Total increase (decrease)
in net asset value .01 (.04) .39 (.33)
Net asset value, ending $5.03 $5.02 $5.06 $4.67
Total return* 2.37% 3.53% 13.48% (2.44%)
Ratios to average net assets:
Net investment income 4.42%(a) 4.28% 4.73% 4.64%
Total expenses .89%(a) .94% .43% -
Net expenses .79%(a) .81% .35% .21%
Expenses reimbursed - .01% .43% .80%
Portfolio turnover 4% 19% 44% 93%
Net assets, ending (in thousands) $6,971 $5,516 $3,892 $3,387
Number of shares outstanding,
ending (in thousands) 1,387 1,098 769 725
</TABLE>
<TABLE>
<S> <C> <C> <C>
PERIODS ENDED
October 29, December 31,
Class C Shares 1996 1995 1994
Net asset value, beginning $5.05 $4.67 $4.93
Income from investment operations
Net investment income .13 .19 .15
Net realized and unrealized gain
(loss)on investments (.08) .37 (.26)
Total from investment operations .05 .56 (.11)
Distributions from
Net investment income (.13) (.18) (.15)
Total increase (decrease) in net
asset value (.08) .38 (.26)
Net asset value, ending $4.97 $5.05 $4.67
Total return* 1.10% 12.28% (1.84%)
Ratios to average net assets:
Net investment income 3.12%(a) 3.82% 3.58%(a)
Total expenses 2.07%(a) 1.33% -
Net expenses 1.93%(a) 1.25% 1.32%(a)
Expenses reimbursed .06%(a) .65% 1.02%(a)
Portfolio turnover 17% 44% 93%
Net assets, ending (in thousands) $353 $401 $919
Number of shares outstanding,
ending (in thousands) 71 79 197
</TABLE>
<PAGE>
FINANCIAL HIGHLIGHTS - MARYLAND PORTFOLIO
<TABLE>
<S> <C> <C> <C> <C> <C>
PERIODS ENDED
June 30, December 31,
1997 1996 1995 1994 1993
Class A Shares
Net asset value, beginning $5.03 $5.06 $4.67 $5.05 $5.00
Income from investment operations
Net investment income .11 .23 .24 .24 .04
Net realized and unrealized gain
(loss)on investments .01 (.04) .39 (.39) .05
Total from investment operations .12 .19 .63 (.15) .09
Distributions from
Net investment income (.11) .22) (.24) (.23) (.04)
Total increase (decrease)
in net asset value .01 (.03) .39 (.38) .05
Net asset value, ending $5.04 $5.03 $5.06 $4.67 $5.05
Total return* 2.48% 3.96% 13.66% (2.94%) 7.46%
Ratios to average net assets:
Net investment income 4.59%(a) 4.59% 4.87% 5.01% 4.42%(a)
Total expenses .99%(a) 1.00% 51% - -
Net expenses .93%(a) .94% .48% .17 -
Expenses reimbursed - .04% .43% .86% .80%(a)
Portfolio turnover - 8% 11% 77% 14%
Net assets, ending (in thousands) $11,793 $12,023 $9,411 $7,429 $5,401
Number of shares outstanding,
ending (in thousands) 2,342 2,338 1,860 1,589 1,070
</TABLE>
<TABLE>
<S> <C> <C> <C>
PERIODS ENDED
October 29, December 31,
Class C Shares 1996 1995 1994
Net asset value, beginning $5.04 $4.66 $4.97
Income from investment operations
Net investment income .16 .20 .16
Net realized and unrealized gain
(loss) on investments (.08) .38 (.30)
Total from investment operations .08 .58 (.14)
Distributions from
Net investment income (.15) (.20) (.17)
Total increase (decrease) in net
asset value (.07) .38 (.31)
Net asset value, ending $4.97 $5.04 $4.66
Total return* 1.67% 12.55% (2.60%)
Ratios to average net assets:
Net investment income 3.77%(a) 4.01% 4.29%(a)
Total expenses 1.80%(a) 1.36% -
Net expenses 1.73%(a) 1.33% 1.17%(a)
Expenses reimbursed .05%(a) .53% .93%(a)
Portfolio turnover 7% 11% 77%
Net assets, ending (in thousands) $3,291 $2,509 $1,806
Number of shares outstanding,
ending (in thousands) 662 498 388
</TABLE>
<PAGE>
FINANCIAL HIGHLIGHTS - MICHIGAN PORTFOLIO
<TABLE>
<S> <C> <C> <C> <C> <C>
PERIODS ENDED
June 30, December 31,
1997 1996 1995 1994 1993
Class A Shares
Net asset value, beginning $5.10 $5.12 $4.74 $5.09 $5.00
Income from investment operations
Net investment income .11 .22 .2 .23 .04
Net realized and unrealized gain
(loss) on investments .02 (.01) .37 (.35) .09
Total from investment operations .13 .21 .61 (.12) .13
Distributions from
Net investment income (.11) (.23) (.23) (.23) (.04)
Total increase (decrease)
in net asset value .02 (.02) .38 (.35) .09
Net asset value, ending $5.12 $5.10 $5.12 $4.74 $5.09
Total return* 2.65% 4.19% 13.08% (2.42%) 10.28%
Ratios to average net assets:
Net investment income 4.48%(a) 4.37% 4.76% 4.76% 4.27%(a)
Total expenses 1.02%(a) 1.02% .52% - -
Net expenses .92%(a) .93% .48% .18% -
Expenses reimbursed - .02% .39% .84% .89%(a)
Portfolio turnover 10% 18% 22% 65% -
Net assets, ending (in thousands) $5,273 $5,804 $4,556 $5,255 $4,287
Number of shares outstanding,
ending (in thousands) 1,029 1,137 890 1,109 842
</TABLE>
<TABLE>
<S> <C> <C> <C>
PERIODS ENDED
October 29, December 31,
Class C Shares 1996 1995 1994
Net asset value, beginning $5.11 $4.74 $5.02
Income from investment operations
Net investment income .14 .20 .16
Net realized and unrealized gain
(loss) on investments (.06) .36 (.28)
Total from investment operations .08 .56 (.12)
Distributions from
Net investment income (.15) (.19) (.16)
Total increase (decrease) in net
asset value (.07) .37 (.28)
Net asset value, ending $5.04 $5.11 $4.74
Total return* 1.52% 11.96% (2.12%)
Ratios to average net assets:
Net investment income 3.34%(a) 3.91% 3.95%(a)
Total expenses 2.00%(a) 1.37% -
Net expenses 1.91%(a) 1.33% 1.15%(a)
Expenses reimbursed .08%(a) .52% .87%(a)
Portfolio turnover 18% 22% 65%
Net assets, ending (in thousands) $1,189 $1,497 $1,219
Number of shares outstanding,
ending (in thousands) 236 293 257
</TABLE>
<PAGE>
FINANCIAL HIGHLIGHTS - NEW YORK PORTFOLIO
<TABLE>
<S> <C> <C> <C> <C> <C>
PERIODS ENDED
June 30, December 31,
1997 1996 1995 1994 1993
Class A Shares
Net asset value, beginning $5.09 $5.12 $4.71 $5.05 $5.00
Income from investment operations
Net investment income .11 .21 .2 .23 .04
Net realized and unrealized gain
(loss) on investments - (.02) .4 (.34) .05
Total from investment operations .11 .19 .63 (.11) .09
Distributions from
Net investment income (.11) (.22) (.22) (.23) (.04)
Net realized gains - - - - -
Total distributions (.11) (.22) (.22) (.23) (.04)
Total increase (decrease)
in net asset value - (.03) .41 (.34) .05
Net asset value, ending $5.09 $5.09 $5.12 $4.71 $5.05
Total return* 2.25% 3.79% 13.72% (2.26%) 7.22%
Ratios to average net assets:
Net investment income 4.47%(a) 4.20% 4.47% 4.77% 3.81%(a)
Total expenses + 1.07%(a) 1.13% .58% - -
Net expenses .95%(a) .98% .50% .18% -
Expenses reimbursed - .03% .49% 1.13% 2.00%(a)
Portfolio turnover 5% 19% 13% 56% -
Net assets, ending (in thousands) $6,528 $6,218 $3,573 $2,648 $2,236
Number of shares outstanding,
ending (in thousands) 1,283 1,222 698 562 433
</TABLE>
<TABLE>
<S> <C> <C> <C>
PERIODS ENDED
October 29, December 31,
Class C Shares 1996 1995 1994
Net asset value, beginning $5.11 $4.71 $4.98
Income from investment operations
Net investment income .14 .19 .16
Net realized and unrealized gain
(loss) on investments (.06) .40 (.27)
Total from investment operations .08 .59 (.11)
Distributions from
Net investment income (.14) (.19) (.16)
Net realized gains - - -
Total distributions (.14) (.19) (.16)
Total increase (decrease) in net
asset value (.06) .40 (.27)
Net asset value, ending $5.05 $5.11 $4.71
Total return* 1.64% 12.63% (1.97%)
Ratios to average net assets:
Net investment income 3.41%(a) 3.65% 3.93%(a)
Total expenses + 1.98%(a) 1.40% -
Net expenses 1.83%(a) 1.33% 1.22%(a)
Expenses reimbursed .06%(a) .59% .92%(a)
Portfolio turnover 10% 13% 56%
Net assets, ending (in thousands) $2,365 $2,392 $1,119
Number of shares outstanding,
ending (in thousands) 468 468 237
</TABLE>
<PAGE>
FINANCIAL HIGHTLIGHTS - PENNSYLVANIA PORTFOLIO
<TABLE>
<S> <C> <C> <C> <C>
PERIODS ENDED
June 30, December 31,
1997 1996 1995 1994
Class A Shares
Net asset value, beginning $5.08 $5.10 $4.71 $5.00
Income from investment operations
Net investment income .11 .21 .25 .22
Net realized and unrealized gain
(loss) on investments .01 (.02) .37 (.29)
Total from investment operations .12 .19 .62 (.07)
Distributions from
Net investment income (.11) (.21) .23) (.22)
Total increase (decrease)
in net asset value .01 (.02) .39 (.29)
Net asset value, ending $5.09 $5.08 $5.10 $4.71
Total return* 2.39% 3.92% 13.51% (1.29%)
Ratios to average net assets:
Net investment income 4.61%(a) 4.45% 5.10% 4.94%
Total expenses+ 1.08%(a) 1.11% .49% -
Net expenses .90%(a) .93% .41% .26%
Expenses reimbursed - .05% .54% .94%
Portfolio turnover - 9% 17% 96%
Net assets, ending (in thousands) $4,646 $4,486 $2,522 $1,872
Number of shares outstanding,
ending (in thousands) 912 883 495 398
</TABLE>
<TABLE>
<S> <C> <C> <C>
PERIODS ENDED
October 29, December 31,
Class C Shares 1996 1995 1994
Net asset value, beginning $5.11 $4.72 $4.91
Income from investment operations
Net investment income .15 .21 .16
Net realized and unrealized gain
(loss)on investments (.07) .37 (.19)
Total from investment operations .08 .58 (.03)
Distributions from
Net investment income (.14) (.19) (.16)
Total increase (decrease) in net asset
value (.06) .39 (.19)
Net asset value, ending $5.05 $5.11 $4.72
Total return* 1.63% 12.55% (.30%)
Ratios to average net assets:
Net investment income 3.58%(a) 4.29% 4.20%(a)
Total expenses + 1.92%(a) 1.32% -
Net expenses 1.74%(a) 1.24% 1.22%(a)
Expenses reimbursed .08%(a) .62% 1.15%(a)
Portfolio turnover 9% 17% 96%
Net assets, ending (in thousands) $1,555 $1,748 $1,168
Number of shares outstanding,
ending (in thousands) 308 342 248
</TABLE>
<PAGE>
FINANCIAL HIGHLIGHTS - VIRGINIA PORTFOLIO
<TABLE>
<S> <C> <C> <C> <C> <C>
PERIODS ENDED
June 30, December 31,
1997 1996 1995 1994 1993
Class A Shares
Net asset value, beginning $5.10 $5.13 $4.74 $5.06 $5.00
Income from investment operations
Net investment income .11 .22 .24 .23 .05
Net realized and unrealized gain
(loss) on investments (.01) (.03) .39 (.32) .06
Total from investment operations .10 .19 .63 (.09) .11
Distributions from
Net investment income (.11) (.22) (.24) (.23) (.05)
Total increase (decrease)
in net asset value (.01) (.03) .39 (.32) .06
Net asset value, ending $5.09 $5.10 $5.13 $4.74 $5.06
Total return* 2.02% 3.82% 13.54%(2.04%) 8.65%
Ratios to average net assets:
Net investment income 4.49%(a) 4.35% 4.86% 4.87% 4.81%(a)
Total expenses + .97%(a) 1.00% .54% - -
Net expenses .89%(a) .92% .51% .19% -
Expenses reimbursed - .03% .38% .86% 1.54%(a)
Portfolio turnover - 4% 11% 65% 28%
Net assets, ending (in thousands) $13,598 $12,618 $7,295 $5,866 $2,720
Number of shares outstanding,
ending (in thousands) 2,670 2,475 1,423 1,239 537
</TABLE>
<TABLE>
<S> <C> <C> <C>
PERIODS ENDED
October 29, December 31,
Class C Shares 1996 1995 1994
Net asset value, beginning $5.13 $4.74 $4.99
Income from investment operations
Net investment income .15 .20 .16
Net realized and unrealized gain
(loss) on investments (.06) .39 (.25)
Total from investment operations .09 .59 (.09)
Distributions from
Net investment income (.15) (.20) (.16)
Total increase (decrease) in net
asset value (.06) .39 (.25)
Net asset value, ending $5.07 $5.13 $4.74
Total return* 1.75% 12.62% (1.54%)
Ratios to average net assets:
Net investment income 3.54%(a) 4.07% 4.19%(a)
Total expenses + 1.79%(a) 1.35% -
Net expenses 1.71%(a) 1.31% .94%(a)
Expenses reimbursed .04%(a) .43% .99%(a)
Portfolio turnover 4% 11% 65%
Net assets, ending (in thousands) $3,505 $3,207 $2,766
Number of shares outstanding,
ending (in thousands) 692 625 583
</TABLE>
* Total return does not reflect deduction ^ From September 30, 1992, inception
of Class A front-end sales charge. ^^ From March 1, 1994, inception
(a)Annualized # From May 29, 1992, inception
+ Effective December 31, 1995, this ratio ## From October 1, 1993, inception
reflects total expenses before reduction
for fees paid indirectly; such reductions
are included in the ratio of net expenses.
