Calvert
Municipal Intermediate Funds
Semi-Annual Report
National
California
Maryland
Virginia
June 30, 1998
<PAGE>
Contents
President's Letter
1
Portfolio
Manager Remarks
2
Statement of
Net Assets
6
Statements
of Operations
16
Statements of
Changes in Net Assets
18
Notes to
Financial Statements
22
Financial Highlights
26
Dear Investor:
The previous quarter serves as a reminder that U.S. stock and bond markets can
be severely impacted by global forces and points out some of the challenges
portfolio managers will face in the months ahead.
The Asian financial crisis remains the number one issue. Devaluation of
foreign currencies makes U.S. goods more expensive for buyers overseas and
cheapens the cost of imports to the U.S. This radical shift in pricing power
and advantage caused investors to reduce their expectations for future U.S.
corporate profits growth and helped keep stock prices from rising further.
Asia's struggles also touched off a general flight-to-quality, with investors
bailing out of stocks and riskier bonds, especially emerging market issues,
and running for the safety of U.S. Treasury securities. The yield on the
benchmark 30-year Treasury bond fell to an all-time low.
Russia's economic woes also came to the fore. Propping up the ruble is likely
to be a financial drain on world lenders and could spell more trouble for
emerging market countries.
There are bright spots. In Europe, corporations continued to post good returns
and most markets advanced during the last quarter. Looking ahead, progress
toward a single currency, the euro, for 11 participating countries should
encourage further gains, as it will reduce corporations' currency risk and
make it easier to sell goods and services to customers in other euro-based
countries.
Our equity and fixed-income managers continue to cast a wide net in monitoring
these and other key economic and financial hot spots around the world without
lessening their focus on the changing U.S. economy.
We appreciate your choosing to invest with Calvert Group.
Sincerely,
/s/
Barbara J. Krumsiek
President and CEO
July 27, 1998
<PAGE>
(picture)
Emmett Long is a member of the CAMCO portfolio management team.
National Municipal seeks to earn the highest level of interest income exempt
from federal income taxes, and each state specific fund seeks to earn the
highest level of interest income exempt from federal and specific state income
taxes, as is consistent with prudent investment management, preservation of
capital, and the quality and maturity objectives of each Fund.
Fund
Information
asset allocation
intermediate
tax-exempt bonds
NASDAQ symbol
National CINMX
California CCIMX
Maryland CMDMX
Virginia CVAAX
CUSIP number
National 131616-20-3
California 131616-10-4
Maryland 131616-30-2
Virginia 131616-60-9
How has the bond market fared year to date?
The U.S. bond market delivered a respectable return for the six months ending
June 30, 1998. However, not all sectors participated to the same degree.
The financial crisis in Asia sent investors fleeing to the safe harbor of U.S.
Treasury securities. These issues were the top performing fixed-income
instruments. Corporates lagged as record new issue supply, earnings outlook
concerns and continued poor performance in the Yankee sector combined to stall
performance. Yankee bonds are dollar-denominated securities issued by foreign
banks and corporations and traded in the U.S. markets.
Municipals also underperformed, with long municipal vs. Treasury ratios
approaching historically wide levels. This was caused by heavy new issuance
supply, tepid demand, a flatter benchmark Treasury curve and concern over the
prospects for meaningful tax reform.
In general, what was your approach?
Expecting interest rates would be more likely to decline than rise, we took
steps to lengthen the Portfolios' duration at the beginning of this year.
Events supporting this view included turmoil in the Asian economies, which
would likely have a slowing effect on the U.S. economy and lessen the
probability of a rise in interest rates. The longer duration served to
increase the price sensitivity of the Portfolio, as prices of longer-term
securities rise more in response to a decline in rates than those of
short-term issues. This strategy was negative for performance during most of
the first quarter and positive for performance during most of the second
quarter, especially in May, when municipals enjoyed a strong rally.
National Intermediate
During this period, the Calvert Arizona, Florida, Michigan, New York and
Pennsylvania Intermediate Portfolios were merged into the National
Intermediate Portfolio.
COMPARATIVE INVESTMENT PERFORMANCE
National Lipper California Lipper Lehman
Municipal Intermediate Municipal CA Intermediate Muni. 10
Intermediate Muni. Debt Intermediate Muni. Debt Year Bond
Fund Funds Avg. Fund Funds Avg. Index TR
6 month 1.78% 2.05% 1.77% 1.92% 2.56%
1 year 6.56% 6.69% 6.31% 6.44% 8.48%
3 year 6.29% 6.13% 5.89% 6.39% 7.73%
5 year 5.96% 5.35% 5.01% 5.31% 6.55%
<PAGE>
Investment performance does not reflect the deduction of any front-end sales
charge.
TR represents total return. Source: Lipper Analytical Services, Inc.
Shareholders were sent detailed information ahead of the merger date. This
move was necessitated by the thin volume of securities trading in those
smaller municipal markets. The merger should work to all shareholders' benefit
because it increases liquidity and allows us to trade more cost-efficiently.
However, we realized that the National Fund might not satisfy investors
looking to generate income exempt from both federal and state taxes. To make
sure we would be able to meet redemptions without having to adjust the
Portfolio's overall strategic approach, we opted for the tactical solution of
adding to our cash reserves. This had the effect of shortening the Portfolio's
effective duration by approximately one year. Unfortunately our timing
coincided with a market rally, and the Portfolio did not get the full benefit
of the run-up in bond prices.
For the six-month period, the National Intermediate Fund's return of 1.78% was
27 basis points behind the return for an average of similar funds.
California Intermediate
Our more bullish approach worked to our advantage in January, May and June,
but the net effect was negative for performance year to date. Our 1.77%
six-month return lagged the average return for our peer group by 15 basis
points.
Maryland Intermediate
Year-to-date, the Portfolio's 1.34% return is 58 basis points behind the
return on our benchmark. The main reason for the performance disparity is our
longer maturity. This Portfolio is compared to an average of "other state"
intermediate-term municipal funds, as there are not enough Maryland municipal
funds for the tracking service, in this case Lipper Analytical Services, to
offer a state-specific benchmark.
Virginia Intermediate
Our more aggressive approach put this Portfolio's 1.11% six-month return 67
basis points behind the return on an average of similar funds for the year to
date.
Portfolio
statistics
weighted
average maturity
National
6.30.98 9 years
12.31.97 10 years
California
6.30.98 10 years
12.31.97 9 years
Maryland
6.30.98 10 years
12.31.97 9 years
Virginia
6.30.98 9 years
12.31.97 8 years
effective duration
National
6.30.98 6.22 years
12.31.97 6.17 years
California
6.30.98 6.56 years
12.31.97 6.78 years
Maryland
6.30.98 6.32 years
12.31.97 5.51 years
Virginia
6.30.98 5.78 years
12.31.97 5.04 years
comparative Investment Performance
Maryland Lipper Other Virginia Lipper Lehman
Municipal States Interm. Municipal VA Intermediate Muni. 10
Intermediate Muni. Debt Intermediate Muni. Debt Year Bond
Fund Funds Avg. Fund Funds Avg. Index TR
6 month 1.34% 1.92% 1.11% 1.78% 2.56%
1 year 6.48% 6.36% 5.76% 6.23% 8.48%
3 year 6.09% 5.78% 5.55% 5.66% 7.73%
Investment performance does not reflect the deduction of any front-end sales
charge.
TRrepresents total return. Source: Lipper Analytical Services, Inc.
<PAGE>
Portfolio
statistics
monthly
dividend yield
National
6.30.98 4.01%
12.31.97 4.47%
California
6.30.98 3.95%
12.31.97 4.27%
Maryland
6.30.98 3.71%
12.31.97 4.13%
Virginia
6.30.98 3.73%
12.31.97 4.23%
30 day SEC yield
National
6.30.98 3.79%
12.31.97 4.00%
California
6.30.98 3.82%
12.31.97 3.87%
Maryland
6.30.98 3.60%
12.31.97 3.76%
Virginia
6.30.98 3.59%
12.31.97 3.70%
Credit Quality Distribution
as of 6.39.98
Below are pie charts of credit quality distribution
National
AAA 48%
AA 20%
A 5%
BBB 12%
Cash &
equivalents 15%
Maryland
AAA 58%
AA 28%
A 10%
Cash &
equivalents 4%
California
AAA 58%
AA 7%
A 21%
BBB 7%
Cash &
equivalents 7%
Virginia
AAA 42%
AA 44%
A 4%
BBB 5%
Cash &
equivalents 5%
What's your outlook for the remainder of the year?
Yields on municipals fell to historic lows relative to Treasuries over this
period. The municipal market bounced back in May with a strong rally. We
believe there will be more good news ahead, but expect continued choppy seas
over the near term as investors attempt to determine the full effects of the
Asian financial crisis on the US economy and the direction of interest rates.
Our outlook calls for rates to trend lower. Accordingly, we'll be maintaining
the Portfolio's longer weighted average maturity structure.
We appreciate your investment. Conflicting reports on the strength of the
economy and the meltdown of currencies overseas has created a very challenging
investment environment.
July 21, 1998
Please remember, this discussion reflects the views and opinions of Calvert
Asset Management Company at June 30, 1998, the end of the reporting period.
Our strategy and the Fund's portfolio composition may differ due to
ever-changing market and economic conditions. While historical performance is
no guarantee of future results, it may give you a better and more thorough
understanding of our investment decisions and management philosophy.
Growth of a hypothetical $10,000 investment
Total returns assume reinvestment of dividends and reflect the deduction of
Portfolio's maximum front-end sales charge of 2.75%. No sales charge has been
applied to the indices used for comparison. Past performance is no guarantee
of future returns. Source: Lipper Analytical Services, Inc.
National
Line graph here showing total returns from 10/1/92 to 6/98
Calvert National Municipal Intermediate Fund $13,737
Lehman Municipal 10 year Bond Index TR $15,026
Lipper Intermediate Municipal Debt Funds Average $13,855
National
average annual
total return
as of 6.30.98
1 year 3.61%
5 year 5.36%
inception 5.67%
(9.30.92)
California
Line graph here showing total returns from 10/1/92 to 6/98
Calvert National Municipal Intermediate Fund $13,670
Lehman Municipal 10 year Bond Index TR $15,731
Lipper Intermediate Municipal Debt Funds Average $14,214
California
average annual
total return
as of 6.30.98
1 year 3.42%
5 year 4.42%
inception 5.29%
(5.29.92)
Maryland
Line graph here showing total returns from 10/1/93 to 6/98
Calvert National Municipal Intermediate Fund $12,355
Lehman Municipal 10 year Bond Index TR $13,259
Lipper Intermediate Municipal Debt Funds Average $12,263
Maryland
average annual
total return
as of 6.30.98
1 year 3.60%
inception 4.55%
(9.30.93)
Virginia
Line graph here showing total returns from 10/93 to 6/98
Calvert National Municipal Intermediate Fund $12,359
Lehman Municipal 10 year Bond Index TR $13,259
Lipper Intermediate Municipal Debt Funds Average $12,166
Virginia
average annual
total return
as of 6.30.98
1 year 2.93%
inception 4.56%
(9.30.93)
<PAGE>
NATIONAL PORTFOLIO
STATEMENT OF NET ASSETS
June 30, 1998
PRINCIPAL
Municipal Obligations - 98.9% AMOUNT VALUE
Arizona - 1.9%
Maricopa County School District
GO Bonds,
7.50%, 7/1/07, AMBAC Insured $1,100,000 $1,342,990
California - 8.2%
Buena Park VRDN, 5.355%, 12/28/99,
GA: Mass Mutual Life Insurance 300,000 300,000
Orange County Local Transportation
Authority
Sales Tax Revenue Bonds, 6.00%,
2/15/09 2,000,000 2,242,060
Regents of the University of California,
Los Angeles
Lease Revenue Bonds, 6.00%, 5/15/02 570,808 599,840
San Francisco International Airport
Series-2 #5 Municipal
Transportation Revenue Bonds,
5.90%, 5/1/05, FGIC Insured 500,000 543,830
Santa Clara Financing Authority Lease
Revenue Bonds,
6.00%, 11/15/12, AMBAC Insured 2,000,000 2,251,480
Colorado - 1.6%
Denver City and County Airport
Revenue Bonds,
Series A, 7.10%, 11/15/01 1,100,000 1,196,734
Florida - 5.1%
Dade County Education Facilities
Authority Revenue Bonds,
University of Miami, 6.00%, 4/1/08,
MBIA Insured 1,000,000 1,117,280
Duval County MFH Revenue
VRDN, 4.10%, 7/1/25,
LOC: Household Financial Corp. 800,000 800,000
Florida Board of Education GO Bonds,
5.00%, 6/10/10 350,000 359,632
Florida State MFH Revenue
Bonds, Cypress Lake,
5.75%, 12/1/07, LOC:
Heller Financial 300,000 307,974
Sunrise Utility System Revenue
Bonds, 5.50%, 10/1/12,
AMBAC Insured 1,000,000 1,079,100
Georgia - 2.4%
Atlanta Airport Authority
Facility Revenue Bonds,
6.50%, 1/1/07, AMBAC Insured 1,500,000 1,715,715
Illinois - 4.5%
Chicago Water Revenue Bonds,
6.50%, 11/1/10, FGIC Insured 1,000,000 1,173,140
Illinois Development Finance
Authority Revenue Bonds, Provena Health,
5.50%, 5/15/09, MBIAInsured 2,000,000 2,117,420
Indiana - 3.3%
Indianapolis Local Public
Improvement Bond Bank
Revenue Bonds, 6.75%, 2/1/14 2,000,000 2,387,760
<PAGE>
Principal
Municipal Obligations (Cont'd) Amount Value
Kentucky - 2.6%
Glasgow Industrial Building
Revenue VRDN, 5.95%, 6/1/20,
LOC: Bank Tokyo Mitsubishi $1,900,000 $1,900,000
Louisiana - 0.5%
Louisiana Public Facility
Authority Student Loan Revenue Bonds,
6.50%, 3/1/02 330,000 347,734
Maryland - 5.6%
Cambridge Economic Development
Authority Revenue Bonds,
Dorchester General Hospital,
7.25%, 4/1/04 840,000 922,916
Cecil County Health Department
COPs, 7.875%, 7/1/14 1,200,000 1,320,648
Prince Georges County Economic
Development Authority Revenue
Bonds, Ammendate Business
Project, 5.68%, 8/1/11, LOC:
First National Bank of Maryland,
(Tender 1/1/01 @100) 1,782,200 1,830,176
Massachusetts - 1.5%
Massachusetts Special Obligation
Revenue Bonds, 5.50%, 6/1/13 1,000,000 1,073,920
Michigan - 5.8%
Detroit Water Supply Revenue
Bonds, MBIA Insured
5.30%, 7/1/09 175,000 185,796
6.00%, 7/1/14 1,000,000 1,124,600
Michigan Higher Education
Facilities Authority Revenue Bonds:
6.00%, 11/1/03 1,545,000 1,650,724
7.00%, 11/1/05 610,000 708,295
Oakland County Economic
Development Corp. Limited Obligation
Revenue Bonds, Cranbrook
Educational Community,
6.375%, 11/1/14 500,000 553,470
Missouri - 6.9%
St Louis IDA Revenue
VRDN, 4.05%, 1/1/21,
LOC: Banca Naz Del Lavoro 5,000,000 5,000,000
New Jersey - 3.3%
New Jersey Transportation
Authority Revenue Bonds,
6.50%, 6/15/11, MBIA Insured 2,000,000 2,357,060
New York - 11.5%
Long Island Power Authority
Electric System Revenue Bonds,
5.50%, 12/1/13, FSA Insured 1,000,000 1,075,610
New York City Transitional
Finance Authority Revenue Bonds,
5.25%, 5/1/14 2,815,000 2,864,516
New York State Environmental
Pollution Control Revenue Bonds,
5.70%, 1/15/12 500,000 537,205
New York State Local
Government Assistance Corp.
Revenue Bonds,
6.00%, 4/1/14 1,000,000 1,125,570
New York State Thruway
Authority Highway Revenue Bonds,
Series B, 5.375%, 4/1/02,
FGIC Insured 240,000 250,272
<PAGE>
Principal
Municipal Obligations (Cont'd) Amount Value
New York (Cont'd)
Orange County IDA VRDN,
5.61%, 12/1/05, LOC: Summit Bank $1,500,000 $1,500,000
Oyster Bay GO Bonds, 5.00%, 2/15/10 500,000 518,740
Westchester County IDA Civic
Facility Revenue Bonds,
Julia Dyckman Andrus Memorial,
6.25%, 4/1/05 450,000 478,071
Ohio - 4.4%
Ohio State Water Development
Authority Revenue Bonds,
5.25%, 6/1/08, FSA Insured 3,000,000 3,175,860
Pennsylvania - 2.0%
Allegheny County Higher
Education Building Authority
Revenue Bonds,
Series A, 6.00%, 2/15/08 230,000 250,178
Montgomery County Industrial
Development Revenue VRDN,
3.55%, 12/1/13, LOC: PNC Bank 150,000 150,000
Philadelphia Hospitals &
Higher Education Facilities Authority
Revenue Bonds, 5.85%, 7/1/02 1,000,000 1,059,080
South Dakota - 1.6%
Heartland Consumers Power District
Revenue Bonds,
6.00%, 1/1/12, FSA Insured 1,000,000 1,122,480
Texas - 7.2%
Brazos River Authority Pollution
Control Utilities Electric Co. Revenue
Bonds, 4.15%, 6/1/30
(mandatory tender 6/18/99) 2,000,000 2,000,920
Harris County GO Bonds, 5.75%,
10/1/14 2,000,000 2,198,260
North Texas Higher Education
Student Loan Revenue Bonds,
Series B, 5.55%, 4/1/03 1,000,000 1,049,200
Virginia - 9.5%
Arlington County Community
Housing Finance Revenue Bonds,
6.00%, 6/1/09 290,000 305,393
Chesapeake IDA Revenue
Bonds, 6.00%, 6/1/07, MBIA Insured 1,000,000 1,112,270
Southeastern Public Service
Authority Revenue Bonds,
5.00%, 7/1/15 2,000,000 2,018,280
Virginia State Housing Development
Authority Revenue Bonds,
Series I, 6.00%, 7/1/03 1,120,000 1,184,747
Virginia College Building Authority
Revenue Bonds,
Twenty First Century
College Project, 5.00%, 8/1/09 1,000,000 1,030,320
West Point IDA Pollution
Control Revenue Bonds,
Chesapeake Corp.
Project, 6.375%, 5/1/03 1,200,000 1,207,440
Other - 9.5%
Fort Mojave Indian Tribe of Arizona,
California and Nevada Public
Facilities Combined Limited
Obligation and Revenue Bonds
Adjustable Rate and
Tender Series of 1993, 11.50%, 12/1/18 455,020 455,020
Puerto Rico Commonwealth
Highway and
Transportation Revenue Bonds,
AMBAC Insured
5.50%, 7/1/12 1,000,000 1,079,260
5.50%, 7/1/13 2,000,000 2,157,400
<PAGE>
Principal
Municipal Obligations (Cont'd) Amount Value
Other (Cont'd)
Puerto Rico Commonwealth
Highway and Transportation
Revenue Bonds, 5.50%, 7/1/13 $1,500,000 $1,593,180
Virgin Islands Public Finance
Authority Revenue Bonds,
5.50%, 10/1/08 1,500,000 1,569,272
Total Municipal Obligations
(Cost $68,697,872) 71,578,838
TOTAL INVESTMENTS
(Cost $68,697,872) - 98.9% 71,578,838
Other assets and liabilities, net - 1.1% 770,450
NetAssets - 100% $72,349,288
Net Assets Consist of:
Paid-in capital applicable to 6,728,568
outstanding Class A shares
of common stock, $0.01 par value with
250,000,000
Class A shares authorized $69,831,485
Undistributed net investment income 65,846
Accumulated net realized gain (losses) on investments (429,009)
Net unrealized appreciation (depreciation) on investments 2,880,966
Net Assets $72,349,288
Net Asset Value Per Share $10.75
See notes to financial statements.
<PAGE>
CALIFORNIA PORTFOLIO
STATEMENT OF NET ASSETS
June 30, 1998
PRINCIPAL
Municipal Obligations - 98.8% AMOUNT VALUE
California - 90.8%
Anaheim Public Financing
Authority Lease Revenue Bonds,
6.00%, 9/1/14, FSA Insured $1,000,000 $1,130,190
Buena Park VRDN, 5.355%, 12/28/99,
GA: Mass Mutual Life Insurance 200,000 200,000
California Educational Facilities
Revenue Bonds,
University of San Francisco, 5.90%,
10/1/02 595,000 638,524
California GO Bonds, 6.40%, 9/1/07 1,000,000 1,149,500
California State Department
of Water Resources
Revenue Bonds, 6.00%, 12/1/10 1,000,000 1,132,310
California State Public Works
Lease Revenue Bonds,
5.625%, 3/1/16, AMBAC Insured 1,000,000 1,052,870
California Statewide Development
Authority MFH
Revenue Bonds, 8.50%, 11/1/00 962,000 981,278
Kern Community College
District COPs VRDN,
3.20%, 1/1/25, LOC:
Union Bank California 1,725,000 1,725,000
Los Angeles MFH Revenue
Bonds, 5.85%, 12/1/27
(mandatory put 12/1/07) 3,000,000 3,268,230
Los Angeles School District GO Bonds,
6.00%, 7/1/11, FGIC Insured 2,360,000 2,668,263
Los Angeles Wastewater
System Revenue Bonds, Series A,
8.50%, 6/1/02, MBIA Insured 1,000,000 1,157,380
Orange County Local
Transportation Authority
Sales Tax Revenue
Bonds, 6.00%, 2/15/09 1,000,000 1,121,030
Port of Oakland Revenue
Bonds, Series D,
7.00%, 11/1/02, MBIA Insured 1,000,000 1,114,480
Regents of UCLA COPs, 6.32%, 3/15/99 133,388 134,431
Sacramento COPs:
6.75%, 3/1/02 528,780 538,594
6.50%, 1/1/04 1,146,684 1,189,501
Sacramento City Financing
Authority Revenue Bonds,
Series B, 5.00%, 11/1/14 1,000,000 1,007,720
San Bernardino County COPs
VRDN, 4.75%, 3/1/24,
LOC: Bank Tokyo Mitsubishi 200,000 200,000
San Diego County Water Authority COPs,
5.75%, 5/1/11 1,000,000 1,108,430
San Jose Redevelopment
Agency Allocation Bonds,
6.00%, 8/1/09, MBIA Insured 1,000,000 1,128,830
Santa Clara Financing Authority
Lease Revenue Bonds,
6.00%, 11/15/12, AMBAC Insured 2,000,000 2,251,480
Southern California Public
Power Authority Revenue Bonds,
6.75%, 7/1/13, FSA Insured 1,800,000 2,170,152
Southern California Rapid Transit
District Special Assessment Bonds,
5.90%, 9/1/07, AMBAC Insured 1,000,000 1,115,310
Tahoe City Public Utility District
COPs, Series B, 6.25%, 6/1/03 885,000 957,490
Valley Health System COPs, 6.25%,
5/15/99 220,000 222,486
Walnut Valley Unified School
District GO Bonds, 6.10%, 8/1/08,
AMBAC Insured 1,000,000 1,140,731
<PAGE>
Principal
Municipal Obligations (Cont'd) Amount Value
Other - 8.0%
Guam Government Limited
Obligation Revenue Bonds,
5.50%, 11/1/08, AMBAC Insured $1,000,000 $1,090,500
Puerto Rico Commonwealth
Highway and Transportation
Revenue Bonds,
5.50%, 7/1/13, AMBAC Insured 1,465,000 1,580,296
Total Municipal Obligations
(Cost $31,810,249) 33,175,006
TOTAL INVESTMENTS
(Cost $31,810,249) - 98.8% 33,175,006
Other assets and liabilities, net - 1.2% 390,223
Net Assets - 100% $33,565,229
Net Assets Consist of:
Paid-in capital applicable to 3,173,276
outstanding Class A shares
of common stock, $0.01 par value
with 250,000,000
Class A shares authorized $32,891,453
Undistributed net investment income 27,464
Accumulated net realized gain (losses) on investments (718,445)
Net unrealized appreciation (depreciation) on investments 1,364,757
Net Assets $33,565,229
Net Asset Value Per Share $10.58
See notes to financial statements.
<PAGE>
MARYLAND PORTFOLIO
STATEMENT OF NET ASSETS
June 30, 1998
PRINCIPAL
Municipal Obligations - 97.7% AMOUNT VALUE
Maryland - 95.8%
Anne Arundel County GO Bonds,
5.125%, 4/15/09 $500,000 $515,715
Baltimore City GO Bonds:
8.90%, 10/15/99, MBIA Insured 385,000 410,098
6.00%, 10/15/04, AMBAC Insured 500,000 547,535
Baltimore IDA Revenue VRDN,
4.45%, 8/1/16,
LOC: Dai-Ichi Kangyo Bank 250,000 250,000
Cambridge Economic Development
Authority Revenue Bonds,
Dorchester General Hospital,
7.25%, 4/1/04 760,000 835,020
Carroll County GO Bonds, 6.25%, 11/1/08
(Prerefunded 11/1/01 @ 102) 400,000 434,964
Cecil County GO Bonds, 5.10%,
12/1/07, FGIC Insured 500,000 520,005
Cecil County Health Department
COP, 7.875%, 7/1/14 439,000 483,137
Charles County GO Bonds,
5.00%, 3/1/09 615,000 637,878
Harford County GO Bonds,
5.50%, 1/1/07 500,000 540,820
Howard County GO Bonds,
5.25%, 8/15/05 400,000 424,600
Maryland GO Bonds:
4.75%, 3/1/08 700,000 720,195
5.00%, 8/1/11 500,000 512,725
Maryland Health & Higher
Education Facilities Authority
Revenue Bonds, 6.00%, 7/1/10 300,000 338,112
Maryland Housing & Community
Development Revenue Bonds,
5.05%, 4/1/08 500,000 509,840
Maryland Stadium Authority
Revenue Bonds,
5.375%, 12/15/03, AMBAC Insured 370,000 391,371
Maryland State Economic Development
Authority Revenue Bonds,
Series A, 8.625%, 10/1/19 500,000 590,930
Montgomery County GO Bonds:
9.75%, 6/1/01 250,000 288,925
7.00%, 5/1/03 230,000 258,653
Washington D.C. Metropolitan
Area Transit Authority
Revenue Bonds, 6.00%, 7/1/07,
FGIC Insured 400,000 445,264
Washington Suburban Sanitary
District Revenue Bonds,
5.00%, 6/1/09 500,000 521,800
Other - 1.9%
Puerto Rico Aqueduct & Sewer
Authority Revenue Bonds,
6.00%, 7/1/09, AMBAC Insured 500,000 564,990
Puerto Rico Commonwealth Highway
and Transportation Revenue Bonds:
5.50%, 7/1/12, AMBAC Insured 700,000 755,482
6.25%, 7/1/13, MBIA Insured 1,000,000 1,158,470
Total Municipal Obligations (Cost $12,121,205) 12,656,529
Total Investments (Cost $12,121,205) - 97.7% 12,656,529
Other assets and liabilities, net - 1.3% 294,574
Net Assets - 100% $12,951,103
<PAGE>
Net Assets Consist of: VALUE
Paid-in capital applicable to 2,517,690
outstanding Class A shares
of common stock, $0.01 par value
with 250,000,000
Class A shares authorized $12,610,628
Undistributed net investment income 25,508
Accumulated net realized gain (losses)
on investments (220,357)
Net unrealized appreciation
(depreciation) on investments 535,324
Net assets $12,951,103
Net Asset Value Per Share $5.14
See notes to financial statements.
<PAGE>
VIRGINIA PORTFOLIO
STATEMENT OF Investments
June 30, 1998
PRINCIPAL
Municipal Obligations - 97.7% AMOUNT VALUE
Virginia - 84.3%
Arlington County Community
Housing Finance Revenue Bonds,
6.00%, 6/1/09 $520,000 $547,602
Blue Ridge Regional Jail Facility
Revenue Bonds,
5.25%, 12/1/08, MBIA Insured 500,000 528,340
Chesapeake Bay Bridge and Tunnel
Revenue Bonds,
5.50%, 7/1/06, FGIC Insured 450,000 482,773
Chesapeake County IDA Revenue Bonds,
6.00%, 6/1/07, MBIA Insured 110,000 122,350
Fairfax County IDA Revenue
Bonds, Inova Health Systems Project:
5.50%, 8/15/08 500,000 537,325
4.60%, 8/15/09 460,000 454,535
Hampton City GO Bonds, 5.90%, 1/15/07 400,000 438,596
Hanover County IDA Revenue Bonds,
5.30%, 8/15/07, MBIA Insured 500,000 530,790
Henrico County IDA Revenue VRDN,
4.55%, 10/1/00, LOC: Tokai Bank 500,000 500,000
Loudon County COPs, FSA Insured:
6.10%, 3/1/02 200,000 213,134
6.30%, 3/1/04 190,000 208,325
Metropolitan Washington Airport
Authority Revenue Bonds,
Series A, MBIA Insured,
5.60%, 10/1/06 300,000 322,161
Norfolk GO Bonds, Series A,
5.40%, 2/1/02 300,000 312,771
Northern Virginia Transportation
District Revenue Bonds,
Series A, 5.125%, 5/15/10 500,000 516,210
Peninsula Ports Health System
Health Revenue Bonds,
6.00%, 7/1/01 300,000 316,296
Riverside Regulatory Jail
Authority Revenue Bonds,
5.70%, 7/1/08, MBIA Insured 450,000 488,151
Virginia College Building Authority
Revenue Bonds,
Twenty First Century College
Project, 5.00%, 8/1/09 500,000 515,160
Virginia Beach GO Bonds,
5.40%, 7/15/08 340,000 365,064
Virginia State GO Bonds, 5.00%, 6/1/07 500,000 524,930
Virginia State Housing Authority
Revenue Bonds,
Series C, 6.75%, 7/1/11 120,000 127,732
Virginia State MFH Revenue
Bonds, 5.85%, 5/1/08 500,000 538,500
Virginia State Public Building
Authority Revenue Bonds:
Series A, 5.80%, 8/1/02 100,000 105,640
Series A, 6.00%, 8/1/03 400,000 425,692
Series B, 5.625%, 8/1/02 230,000 242,710
Virginia State Public Building
Authority Facilities
Revenue Bonds, 5.00%, 8/1/10 600,000 614,760
Virginia State Public School
Authority Revenue Bonds, Series A:
6.00%, 8/1/01 200,000 211,496
6.00%, 8/1/03 200,000 216,514
Virginia State Transportation
Board Revenue Bonds,
Route 28 Project, 5.75%, 4/1/00 265,000 273,075
<PAGE>
Principal
Municipal Obligations (Cont'd) Amount Value
Washington County IDA Revenue
Bonds, 5.625%, 7/1/02 $320,000 $336,880
West Point IDA Revenue Bonds,
Chesapeake Corporation,
6.375%, 5/1/03 300,000 301,860
Winchester IDA Revenue Bonds,
Shenandoah University,
6.05%, 10/1/05, Asset
Guaranty Insured 300,000 329,064
Other - 13.4%
Puerto Rico Aqueduct &
Sewer Authority Revenue Bonds,
6.00%, 7/1/09, AMBAC Insured 500,000 564,990
Puerto Rico Commonwealth
Highway and Transportation
Revenue Bonds:
5.50%, 7/1/12, AMBAC Insured 700,000 755,482
5.50%, 7/1/13 500,000 531,061
Total Municipal Obligations (Cost $12,966,077) 13,499,969
TOTAL INVESTMENTS (Cost $12,966,077) - 97.7% 13,499,969
Other assets and liabilities, net - 1.3% 322,099
Net Assets - 100% $13,822,068
Net Assets Consist of:
Paid-in capital applicable to 2,677,643
outstanding Class A shares
of common stock, $0.01 par value
with 250,000,000
Class A shares authorized $13,444,824
Undistributed net investment income 15,819
Accumulated net realized gain (losses)
on investments (172,467)
Net unrealized appreciation (depreciation)
on investments 533,892
Net Assets $13,822,068
Net Asset Value Per Share $5.16
Abbreviations:
AMBAC: American Municipal
Bond Assurance Corp. IDA: Industrial Development Authority
COPs : Certificates of Participation MBIA: Municipal Bond Insurance
Association
FGIC: Financial Guaranty
Insurance Company MFH: Multi-Family Housing
FSA: Financial Security Advisor VRDN: Variable Rate Demand Notes
GO: General Obligation
Explanation of Guarantees:
GA: Guaranty Agreement INSUR: Insurance
IA: Investment Agreement LOC: Letter of Credit
See notes to financial statements.
<PAGE>
Statements of Operations
Six Months Ended June 30, 1998
National California
Net Investment Income Portfolio Portfolio
Investment Income
Interest income $1,570,934 $879,601
Expenses
Investment advisory fee 178,975 101,251
Transfer agency fees and expenses 28,872 11,742
Directors' fees and expenses 3,635 1,990
Administrative fees 29,829 16,875
Custodian fees 14,768 5,767
Registration fees 17,067 1,441
Reports to shareholders 17,299 3,151
Professional fees 18,048 8,236
Miscellaneous 2,277 1,263
Total expenses 310,770 151,716
Fees paid indirectly (13,316) (5,002)
Net expenses 297,454 146,714
Net Investment Income 1,273,480 732,887
Realized and Unrealized Gain
(Loss) on Investments
Net realized gain (loss) on securities 594,903 230,489
Net realized gain (loss) on futures (100,800) (100,800)
494,103 129,689
Change in unrealized appreciation
or depreciation (599,065) (277,202)
Net Realized and Unrealized
Gain (Loss) on Investments (104,962) (147,513)
Increase (Decrease) in Net Assets
Resulting from Operations $1,168,518 $585,374
See notes to financial statements.
<PAGE>
Statements of Operations
Six Months Ended June 30, 1998
Maryland Virginia
Net Investment Income Portfolio Portfolio
Investment Income
Interest income $316,654 $348,600
Expenses
Investment advisory fee 36,520 41,355
Transfer agency fees and expenses 6,100 6,184
Directors' fees and expenses 721 810
Administrative fees 6,087 6,893
Custodian fees 3,953 4,849
Registration fees 1,297 438
Reports to shareholders 1,791 2,104
Professional fees 3,050 3,682
Miscellaneous 557 572
Total expenses 60,076 66,887
Fees paid indirectly (2,514) (3,244)
Net expenses 57,562 63,643
Net Investment Income 259,092 284,957
Realized and Unrealized Gain
(Loss) on Investments
Net realized gain (loss) on securities 112,456 86,214
Net realized gain (loss) on futures (38,269) (37,331)
74,187 48,883
Change in unrealized appreciation
or depreciation (159,341) (166,612)
Net Realized and Unrealized
Gain (Loss) on Investments (85,154) (117,729)
Increase (Decrease) in Net Assets
Resulting from Operations $173,938 $167,228
See notes to financial statements.
<PAGE>
National Portfolio
Statements of Changes in Net Assets
Six Months Ended Year Ended
June 30, December 31,
Increase (Decrease) in Net Assets 1998 1997
Operations
Net investment income $1,273,480 $2,235,636
Net realized gain (loss) 494,103 (13,620)
Change in unrealized appreciation
or depreciation (599,065) 1,075,751
Increase (Decrease) in Net Assets
Resulting from Operations 1,168,518 3,297,767
Distributions to shareholders from
Net investment income (1,276,936) (2,245,285)
Capital share transactions
Shares sold 10,055,537 13,264,382
Shares issued from merger (Note A) 24,529,727 -
Reinvestment of distributions 1,025,349 1,846,162
Shares redeemed (12,086,271) (12,841,599)
Total capital share transactions 23,524,342 2,268,945
Total Increase (Decrease)
in Net Assets 23,415,924 3,321,427
Net Assets
Beginning of period 48,933,364 45,611,937
End of period (including undistributed
net investment
income of $65,846 and $69,302,
respectively) $72,349,288 $48,933,364
Capital Share Activity
Shares sold 932,028 1,251,649
Shares issued from merger (Note A) 2,288,901 -
Reinvestment of distributions 95,391 174,583
Shares redeemed (1,123,231) (1,209,723)
Total capital share activity 2,193,089 216,509
California Portfolio
Statements of Changes in Net Assets
Six Months Ended Year Ended
June 30, December 31,
Increase (Decrease) in Net Assets 1998 1997
Operations
Net investment income $732,887 $1,579,273
Net realized gain (loss) 129,689 213,070
Change in unrealized appreciation
or depreciation (277,202) 389,342
Increase (Decrease) in Net Assets
Resulting from Operations 585,374 2,181,685
Distributions to shareholders from
Net investment income (760,386) (1,559,789)
Capital share transactions
Shares sold 1,534,875 6,263,284
Reinvestment of distributions 560,830 1,120,614
Shares redeemed (3,440,440) (8,614,248)
Total capital share transactions (1,344,735) (1,230,350)
Total Increase (Decrease)
in Net Assets (1,519,747) (608,454)
Net Assets
Beginning of period 35,084,976 35,693,430
End of period (including undistributed
net investment
income of $27,464 and $54,963,
respectively) $33,565,229 $35,084,976
Capital Share Activity
Shares sold 144,502 598,006
Reinvestment of distributions 52,913 107,426
Shares redeemed (323,890) (824,559)
Total capital share activity (126,475) (119,127)
See notes to financial statements.
<PAGE>
Maryland Portfolio
Statements of Changes in Net Assets
Six Months Ended Year Ended
June 30, December 31,
Increase (Decrease) in Net Assets 1998 1997
Operations
Net investment income $259,092 $529,691
Net realized gain (loss) 74,187 86,918
Change in unrealized appreciation
or depreciation (159,341) 262,099
Increase (Decrease) in Net Assets
Resulting from Operations 173,938 878,708
Distributions to shareholders from
Net investment income (259,869) (528,089)
Capital share transactions
Shares sold 1,989,861 2,004,752
Reinvestment of distributions 216,406 443,291
Shares redeemed (1,606,293) (2,384,609)
Total capital share transactions 599,974 63,434
Total Increase (Decrease)
in Net Assets 514,043 414,053
Net Assets
Beginning of period 12,437,060 12,023,007
End of period (including undistributed
net investment
income of $25,508 and $26,285,
respectively) $12,951,103 $12,437,060
Capital Share Activity
Shares sold 386,221 397,036
Reinvestment of distributions 41,992 87,700
Shares redeemed (310,941) (472,699)
Total capital share activity 117,272 12,037
See notes to financial statements.
<PAGE>
Virginia Portfolio
Statements of Changes in Net Assets
Six Months Ended Year Ended
June 30, December 31,
Increase (Decrease) in Net Assets 1998 1997
Operations
Net investment income $284,957 $581,789
Net realized gain (loss) 48,883 (7,480)
Change in unrealized appreciation
or depreciation (166,612) 291,183
Increase (Decrease) in Net Assets
Resulting from Operations 167,228 865,492
Distributions to shareholders from
Net investment income (288,952) (578,854)
Capital share transactions
Shares sold 1,249,361 2,455,336
Reinvestment of distributions 276,034 533,068
Shares redeemed (1,123,214) (2,351,006)
Total capital share transactions 402,181 637,398
Total Increase (Decrease)
in Net Assets 280,457 924,036
Net Assets
Beginning of period 13,541,611 12,617,575
End of period (including undistributed
net investment
income of $15,819 and $19,814,
respectively) $13,822,068 $13,541,611
Capital Share Activity
Shares sold 239,958 480,867
Reinvestment of distributions 53,396 104,273
Shares redeemed (217,321) (458,545)
Total capital share activity 76,033 126,595
See notes to financial statements.
<PAGE>
Notes To Financial Statements
Note A - Significant Accounting Policies
General: The Calvert Municipal Fund is comprised of four Municipal
Intermediate Portfolios: National, California, Maryland, and Virginia. 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 March 31, 1998, the net assets of First Variable Rate for Government
Income, Florida Intermediate Portfolio and Calvert Municipal Fund's Michigan
Portfolio and New York Intermediate Portfolios merged into Calvert Municipal
Fund National Intermediate Portfolio. The acquisition was accomplished by a
tax-free exchange of 1,625,516 shares of the National Portfolio (valued at
17,458,044) for 1,308,624 shares of Florida Portfolio, 893,727 shares of
Michigan Portfolio, and 1,233,997 shares of New York Intermediate Portfolios
outstanding at March 31, 1998. The Florida Portfolio's net assets at that
date, including $15,706 of unrealized appreciation and $3,480 of realized
loss, were combined with those of the National Portfolio. The Michigan
Portfolio's net assets at that date, including $202,434 of unrealized
appreciation and $107,674 of realized loss were combined with those of the
National Portfolio. The New York Portfolio's net assets at that date,
including $97,040 of unrealized appreciation and $1,071 of realized loss were
combined with those of the National Portfolio. The aggregate net assets of the
National Portfolio, Florida Portfolio, Michigan Portfolio, and New York
Portfolio immediately before the acquisition were $49,844,234, $6,582,381,
$4,656,320 and $6,219,343, respectively.
On April 24, 1998, the net assets of the Calvert Municipal Fund's Arizona and
Pennsylvania Intermediate Portfolios merged into Calvert Municipal Fund
National Intermediate Portfolio. The acquisition was accomplished by a
tax-free exchange of 663,385 shares of the National Portfolio (valued at
7,071,683) for 480,634 shares of Arizona Portfolio and 944,242 shares of
Pennsylvania Portfolio outstanding at April 24, 1998. The Arizona Portfolio's
net assets at that date, including $10,493 of unrealized appreciation and
$1,029 of realized loss, were combined with those of the National Portfolio.
The Pennsylvania Portfolio's net assets at that date, including $21,951 of
unrealized appreciation and $2,521 of realized loss were combined with those
of the National Portfolio. The aggregate net assets of the National Portfolio,
Arizona Portfolio and Pennsylvania Portfolio immediately before the
acquisition were $66,377,844, $2,359,913 and $4,711,770, respectively.
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 (including options)
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/Trustees.
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. Risks
from writing or purchasing option securities arise from possible illiquidity
of the options market and the movement in the value of the investment or in
interest rates. The risk associated with purchasing options is limited to the
premium originally paid.
<PAGE>
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 amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses during the
reporting period. Actual results could differ from those estimates.
Expense Offset Arrangements: The Fund has an arrangement with its custodian
bank whereby the custodian's and transfer agent's fees may be paid indirectly
by credits earned on the Fund's cash on deposit with the bank. Such a deposit
arrangement is an alternative to overnight investments.
Federal Income Taxes: No provision for federal income or excise tax is
required since the Fund intends to continue to qualify as a regulated
investment company under the Internal Revenue Code and to distribute
substantially all of its earnings.
Note B - Related Party Transactions
Calvert Asset Management Company, Inc. (the "Advisor") is wholly-owned by
Calvert Group, Ltd. ("Calvert"), which is indirectly wholly-owned by Acacia
Mutual Life Insurance Company. The Advisor provides investment advisory
services and pays the salaries and fees of officers and affiliated
Directors/Trustees 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. Under the terms of the agreement,
$49,680, $17,423, $6,788, and $7,405 were payable at period end for National,
California, Maryland and Virginia, respectively.
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. Under terms of the
agreement, $6,004, $2,768, $1,063, and $1,140 were payable at period end for
National, California, Maryland and Virginia, respectively.
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 an annual rate of average daily net assets of .25% for National and
California, and .15% for Maryland and Virginia Portfolios. The Distributor
currently does not charge any Distribution Plan expenses. For the six months
ended December 31, 1997, CDI received sales charges in excess of the dealer
reallowance of $777, $6,555, $4,204, and $4,460 for the National, California,
Maryland, and Virginia Portfolios, respectively.
Calvert Shareholder Services, Inc., an affiliate of the Advisor, is the
shareholder servicing agent for the Fund. Under the terms of the agreement,
$581, $330, $200, and $122 were payable at period end for National,
California, Maryland, and Virginia, respectively. National Financial Data
Services, Inc. is the transfer and dividend disbursing agent.
Each Director/Trustee 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/Trustee's fees are allocated to each of the funds served.
Note C - Investment Activity
During the period, purchases and sales of investments, other than short-term
securities, were:
National California Maryland Virginia
Purchases: $20,625,033 $1,583,313 $2,743,427 $2,904,507
Sales: 9,601,726 5,459,364 2,557,463 2,516,070
The cost of investments owned at June 30, 1998 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 December 31, 1997, and the net capital loss carryforwards
as of December 31, 1997 with expiration dates.
Unrealized Unrealized Capital Loss Expiration
Appreciation Depreciation Carryforwards Dates
National $2,937,575 $56,609 $923,112 2002
California ,366,237 1,480 858,538 2003
Maryland 544,050 8,726 267,013 2002
Virginia 555,273 21,381 205,386 2003
Capital loss carryfowards 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>
Note D - Line of Credit
A financing agreement is in place with all Calvert Group Funds and State
Street Bank and Trust Company ("the Bank"). Under the agreement, the Bank is
providing an unsecured line of credit facility, in the aggregate amount of $50
million ($25 million committed and $25 million uncommitted), to be accessed by
the Funds for temporary or emergency purposes only. Borrowings under this
facility bear interest at the overnight Federal Funds Rate plus .50% per
annum. A commitment fee of .10% per annum will be incurred on the unused
portion of the committed facility which will be allocated to all participating
funds. This fee is paid quarterly in arrears. The Fund had no loans
outstanding pursuant to this line of credit at June 30, 1998.
<PAGE>
National Portfolio
Financial Highlights
Periods Ended
June 30, December 31, December 31,
1998 1997 1996
Net asset value, beginning $10.79 $10.56 $10.62
Income from investment operations
Net investment income .23 .50 .50
Net realized and unrealized gain
(loss) (.04) .23 (.06)
Total from investment operations .19 .73 .44
Distributions from
Net investment income (.23) (.50) (.50)
Total increase (decrease) in
net asset value (.04) .23 (.06)
Net asset value, ending $10.75 $10.79 $10.56
Total return * 1.78% 7.11% 4.32%
Ratios to average net assets:
Net investment income 4.27%(a) 4.71% 4.83%
Total expenses + 1.04%(a) .97% 1.04%
Net expenses 1.00%(a) .94% 1.01%
Expenses reimbursed - - -
Portfolio turnover 20% 29% 23%
Net assets, ending (in thousands) $72,349 $48,933 $45,612
Number of shares outstanding,
ending (in thousands) 6,729 4,535 4,319
Years Ended
December 31, December 31, December 31,
1995 1994 1993
Net asset value, beginning $9.81 $10.42 $10.01
Income from investment operations
Net investment income .51 .50 .48
Net realized and unrealized gain (loss).80 (.62) .45
Total from investment operations 1.31 (.12) .93
Distributions from
Net investment income (.50) (.49) (.48)
Net realized gains - - (.04)
Total distributions (.50) (.49) (.52)
Total increase (decrease) in
net asset value .81 (.61) .41
Net asset value, ending $10.62 $9.81 $10.42
Total return * 13.64% (1.18%) 9.47%
Ratios to average net assets:
Net investment income 4.97% 4.88% 5.01%
Total expenses + .96% - -
Net expenses .94% .69% .10%
Expenses reimbursed - .32% .45%
Portfolio turnover 57% 122% 162%
Net assets, ending (in thousands) $40,146 $36,159 $37,467
Number of shares outstanding,
ending (in thousands) 3,780 3,686 3,596
<PAGE>
California Portfolio
Financial Highlights
Periods Ended
June 30, December 31, December 31,
1998 1997 1996
Net asset value, beginning $10.63 $10.44 $10.51
Income from investment operations
Net investment income .23 .49 .48
Net realized and unrealized
gain (loss) (.04) .18 (.07)
Total from investment operations .19 .67 .41
Distributions from
Net investment income (.24) (.48) (.48)
Total increase (decrease) in net
asset value (.05) .19 (.07)
Net asset value, ending $10.58 $10.63 $10.44
Total return * 1.77% 6.61% 4.04%
Ratios to average net assets:
Net investment income 4.34%(a) 4.64% 4.59%
Total expenses + .90%(a) .91% .97%
Net expenses .87%(a) .88% .94%
Expenses reimbursed - - -
Portfolio turnover 5% 48% 25%
Net assets, ending (in thousands) $33,565 $35,085 $35,693
Number of shares outstanding,
ending (in thousands) 3,173 3,300 3,419
Years Ended
December 31, December 31, December 31,
1995 1994 1993
Net asset value, beginning $9.81 $10.56 $10.24
Income from investment operations
Net investment income .47 .48 .53
Net realized and unrealized
gain (loss) .69 (.76) .36
Total from investment operations 1.16 (.28) .89
Distributions from
Net investment income (.46) (.47) (.53)
Net realized gains - - (.04)
Total distributions (.46) (.47) (.57)
Total increase (decrease) in
net asset value .70 (.75) .32
Net asset value, ending $10.51 $9.81 $10.56
Total return * 12.07% (2.57%) 8.88%
Ratios to average net assets:
Net investment income 4.59% 4.67% 5.12%
Total expenses + .91% - -
Net expenses .89% .76% .21%
Expenses reimbursed - .13% .12%
Portfolio turnover 47% 68% 21%
Net assets, ending (in thousands) $34,424 $34,111 $35,726
Number of shares outstanding,
ending (in thousands) 3,276 3,476 3,383
<PAGE>
Maryland Portfolio
Financial Highlights
Periods Ended
June 30, December 31, December 31,
1998 1997 1996
Net asset value, beginning $5.18 $5.03 $5.06
Income from investment operations
Net investment income .11 .23 .23
Net realized and unrealized
gain (loss) (.04) .15 (.04)
Total from investment operations .07 .38 .19
Distributions from
Net investment income (.11) (.23) (.22)
Total increase (decrease) in
net asset value (.04) .15 (.03)
Net asset value, ending $5.14 $5.18 $5.03
Total return * 1.34% 7.68% 3.96%
Ratios to average net assets:
Net investment income 4.26%(a) 4.48% 4.59%
Total expenses + .99%(a) .99% 1.00%
Net expenses .95%(a) .92% .94%
Expenses reimbursed - - .04%
Portfolio turnover 22% 13% 8%
Net assets, ending (in thousands) $12,951 $12,437 $12,023
Number of shares outstanding,
ending (in thousands) 2,518 2,400 2,338
Periods Ended
December 31, December 31, December 31,
1995 1994 1993
Net asset value, beginning $4.67 $5.05 $5.00
Income from investment operations
Net investment income .24 .24 .04
Net realized and unrealized
gain (loss) .39 (.39) .05
Total from investment operations .63 (.15) .09
Distributions from
Net investment income (.24) (.23) (.04)
Total increase (decrease) in
net asset value .39 (.38) .05
Net asset value, ending $5.06 $4.67 $5.05
Total return * 13.66% (2.94%) 7.46%
Ratios to average net assets:
Net investment income 4.87% 5.01% 4.42%(a)
Total expenses + .51% - -
Net expenses .48% .17% -
Expenses reimbursed .43% .86% .80%(a)
Portfolio turnover 11% 77% 14%
Net assets, ending (in thousands) $9,411 $7,429 $5,401
Number of shares outstanding,
ending (in thousands) 1,860 1,589 1,070
<PAGE>
Virginia Portfolio
Financial Highlights
Periods Ended
June 30, December 31, December 31,
1998 1997 1996
Net asset value, beginning $5.21 $5.10 $5.13
Income from investment operations
Net investment income 11 .22 .22
Net realized and unrealized
gain (loss) (.05) .11 (.03)
Total from investment operations .06 .33 .19
Distributions from
Net investment income (.11) (.22) (.22)
Total increase (decrease) in
net asset value (.05) .11 (.03)
Net asset value, ending $5.16 $5.21 $5.10
Total return* 1.11% 6.71% 3.82%
Ratios to average net assets:
Net investment income 4.13%(a) 4.38% 4.35%
Total expenses + .97%(a) .96% 1.00%
Net expenses .92%(a) .88% .92%
Expenses reimbursed - - .03%
Portfolio turnover 19% 8% 4%
Net assets, ending (in thousands) $13,822 $13,542 $12,618
Number of shares outstanding,
ending (in thousands) 2,678 2,602 2,475
Years Ended
December 31, December 31, December 31,
1995 1994 1993
Net asset value, beginning $4.74 $5.06 $5.00
Income from investment operations
Net investment income .24 .23 .05
Net realized and unrealized
gain (loss) .39 (.32) .06
Total from investment operation .63 (.09) .11
Distributions from
Net investment income (.24) (.23) (.05)
Total increase (decrease) in
net asset value .39 (.32) .06
Net asset value, ending $5.13 $4.74 $5.06
Total return* 13.54% (2.04%) 8.65%
Ratios to average net assets:
Net investment income 4.86% 4.87% 4.81%(a)
Total expenses + .54% - -
Net expenses .51% .19% -
Expenses reimbursed .38% .86% 1.54%(a)
Portfolio turnover 11% 65% 28%
Net assets, ending (in thousands) $7,295 $5,866 $2,720
Number of shares outstanding,
ending (in thousands) 1,423 1,239 537
(a) Annualized
* Total return does not reflect deduction of front-end sales charge.
+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 October 1, 1993 inception.
<PAGE>
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<PAGE>
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<PAGE>
This page is reserved for any comments and questions.
<PAGE>
Calvert
Municipal
Fund, Inc.
This report is intended to provide fund
information to
shareholders. It is not authorized for
distribution to
prospective investors unless preceded or accompanied by a prospectus.
printed on
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using soy-
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Calvert Group
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Web Site
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Calvert Distributors, Inc.
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Bethesda, Maryland 20814
Calvert Group's
Family of Funds
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