June 30, 1999
Semi-annual
Report
Calvert Municipal Fund, Inc.
<PAGE>
Table of 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
Shareholder Meeting Update
30
Year 2000 Update
32
<PAGE>
Dear Shareholders:
Here is your semi-annual report for the six-
month period ending June 30, 1999. For the
most current information regarding the per
formance of your fund, please visit our
recently redesigned Website at
www.calvertgroup.com.
In reviewing our recently redesigned Web
site, you will see that we now offer more
interactive information tools to help you
make the most informed investment decisions.
At www.calvertgroup.com you will find fund
performance, profiles and literature, as
well as a rich array of information on
socially responsible and tax free investing.
Our site also includes company profiles,
issues briefs and our award winning "Know
What You Own(r)" service.
Of special note, we have taken online
disclosure a step further this month by
publishing the entire portfolio holdings for
each of our equity funds. Calvert Group is
the first mutual fund family to provide a
complete listing of holdings on a monthly
basis.
Of course, knowing how a fund has performed
is as important as knowing the companies
that are in a Portfolio. I'm pleased to
report that a significant number of our
funds have received a three-star or better
Morningstar rating for their performance
over the past three years. For performance
over the same time frame, two funds --
Calvert Income Fund and Calvert Tax-Free
Reserves Limited Term Portfolio -- received
Morningstar's superlative five-star rating.1
More detail about your fund's performance is
included in this report.
As always, we encourage investors to make
decisions based on your financial objectives
and tolerance for risk. You should routinely
review your asset allocation to be sure you
are positioned at a comfortable risk level.
Your financial professional can suggest
strategies that keep you on track to meet
long-term financial objectives without
exposing you to undue levels of risk.
We appreciate your investment in Calvert
Group funds and look forward to providing
competitive returns in the future.
Sincerely,
Barbara J. Krumsiek
President and CEO
July 20, 1999
1 A Morningstar five-star ranking indicates
that the fund is in the top 10% of all
investment companies in a category, a four
star ranking indicates that the fund is in
the next 22.5%, and a three-star ranking is
in the middle 35%.
<PAGE>
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
Calvert Municipal
Intermediate Funds
How would you characterize the investment
climate over the past six months?
As 1998 closed, we anticipated that the
economy would slow to the point where the
Fed would have to cut rates rather than
raise them. Surprisingly, the economy
continued on its torrid pace of growth. When
it became clear that consumer appetite for
goods and services was continuing to surge,
we shortened our portfolio to better reflect
our interest rate outlook for the near term.
Late in the second quarter of 1999, the
Federal Reserve adopted a tightening bias,
although the market had already priced in a
50 basis point tightening and the long bond
was trading near six percent for the first
time in almost a year. By the time the
Federal Reserve met on June 30, and
increased the Fed funds rate by one quarter
of one percent (25 basis points), the market
was prepared.
National Intermediate
How did the Fund perform?
For the six-month period ending June 30,
1999 the Fund had a return of -2.10% vs. the
Lipper Intermediate Municipal Debt Funds
Average of -1.28%, due in large part to our
longer than average duration in the first
quarter. Rising interest rates also
challenged overall fund performance.
What was your strategy for the period?
Going into 1999, we maintained a strategy of
purchasing good quality issues with good
structure -- a strategy that has served us
in the past and should benefit us in the
future. In the first quarter we maintained a
duration that was longer than our benchmark
with the anticipation that we would test new
lows as the economy continued to slow. By
the middle of the first quarter it was
becoming clear that the economy was not
slowing, and in the second quarter we
shortened the Fund to better reflect the
direction of interest rates. Some sectors
such as high-grade general obligations,
housing, and Puerto Rico issues performed
well as the rates rose. We benefited by our
exposure to almost all of the best
performing sectors.
California Intermediate
How did the Fund perform?
For the period, the Fund had a return of -
1.69% vs. the Lipper California Intermediate
Municipal Debt Funds Average -1.11%, due in
large part to our longer than average
duration in the first quarter. Rising
interest rates also challenged overall
performance.
What was your strategy for this period?
Throughout 1998 and into 1999, California
traded in a market of it own -- with
municipal bond prices going higher rel-
<PAGE>
ative to other municipal securities. We
maintained our strategy to purchase high
quality issues that have good structure. In
the first quarter we maintained a slightly
long duration to our peers with the
anticipation that we would test new lows as
the economy continued to slow. While
California issues outperformed the market,
they were not impervious to rising interest
rates. By the middle of the first quarter it
was becoming clear that the economy was not
slowing, and in the second quarter we
shortened the Fund to better reflect the
direction of interest rates.
Maryland Intermediate
How did the Fund perform?
For the period, the Fund had a return of -
1.89% vs. the Lipper Other States
Intermediate Municipal Average of -1.40%.
Rising interest rates also challenged
overall Fund performance.
What was your strategy for this period?
Going into 1999, we maintained a strategy of
purchasing good quality issues with good
structure. The limited money flow into the
Fund during the first half of the year
limited the need to make significant
structural changes to the Fund. In the first
quarter we maintained a duration that was in-
line to slightly shorter than that of our
peers. Although we anticipated that we would
test new lows as the economy continued to
slow, most of the issues that we reviewed
for purchase didn't meet our structural
parameters. By the middle of the first
quarter it was becoming clear that the
economy was not slowing. In the second
quarter, the Maryland Fund improved relative
to other Calvert Municipal funds, but our
investments in the long-intermediate part of
the curve led to a slight underperfomance
relative to the Index.
Virginia Intermediate
How did the Fund perform?
For the period, the Fund had a return of -
2.19% vs. the Lipper Virginia Intermediate
Municipal Debt Funds Average of -1.39%
Rising interest rates also challenged
overall performance.
What was your strategy for this period?
In the first quarter we maintained a
duration that was in-line to slightly longer
than our peer group with the anticipation
that we would test new lows as the economy
continued to slow. This strategy had
benefited us in the past and we felt it
would benefit us going into 1999. We
continued to purchase good quality issues
that had good structure. By the middle of
the first quarter it was becoming clear that
the economy was not slowing. In the second
quarter we shortened the portfolio by
purchasing shorter duration issues as new
money came into the Fund. We felt that the
intermediate part of the yield curve
Portfolio
statistics
weighted
average maturity
National
6.30.99 10 years
12.31.98 10 years
California
6.30.99 10 years
12.31.98 9 years
Maryland
6.30.99 9 years
12.31.98 9 years
Virginia
6.30.99 8 years
12.31.98 10 years
effective duration
National
6.30.99 6.23 years
12.31.98 6.58 years
California
6.30.99 5.85 years
12.31.98 6.11 years
Maryland
6.30.99 5.78 years
12.31.98 5.98 years
Virginia
6.30.99 5.46 years
12.31.98 6.25 years
<PAGE>
Portfolio
statistics
monthly
dividend yield
National
6.30.99 3.83%
12.31.98 4.85%
California
6.30.99 3.73%
12.31.98 3.94%
Maryland
6.30.99 3.96%
12.31.98 4.68%
Virginia
6.30.99 3.61%
12.31.98 3.56%
30 day SEC yield
National
6.30.99 4.08%
12.31.98 3.67%
California
6.30.99 4.04%
12.31.98 3.56%
Maryland
6.30.99 3.91%
12.31.98 3.46%
Virginia
6.30.99 3.62%
12.31.98 3.39%
was becoming cheap as it declined more on a
relative basis than the long end. Some
sectors such as high-grade general
obligations, housing, and Puerto Rico issues
performed well as the rates rose. We
benefited by our exposure to almost all of
the best performing sectors.
What is your outlook?
As stated earlier, the Federal Reserve
raised rates at the end of June as a
precaution against inflation. Having
anticipated that move we shortened our
portfolio maturity. The question that we are
now evaluating is whether subsequent rate
hikes will follow. In any event, we shall
remain nimble, proactive, and alert to the
possibility of rapid shifts in interest
rates.
July 20, 1999
Please remember, this discussion reflects
the views and opinions of Calvert Asset
Management Company at June 30, 1999, 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.
Comparative Investment Performance
National Lipper California
Municipal Intermediate Municipal
Intermediate Muni. Debt
Intermediate
Fund Funds Avg. Fund
6 month -2.10% -1.28% -1.69%
1 year 1.44% 1.93% 1.92%
5 year* 5.63% 5.55% 5.10%
10 year* N/A N/A N/A
Lipper Lehman
CA Intermediate Muni. 10
Muni. Debt Year Bond
Funds Avg. Index TR
6 month -1.11% -1.73%
1 year 2.37% 2.29%
5 year* 5.73% 6.83%
10 year* N/A N/A
Maryland Lipper Other
Municipal States Interm.
Intermediate Muni. Debt
Fund Funds Avg.
6 month -1.89% -1.40%
1 year 1.54% 1.68%
5 year* 5.59% 5.15%
10 year* N/A N/A
Virginia Lipper Lehman
Municipal VA Intermediate
Muni. 10
Intermediate Muni. Debt
Year Bond
Fund Funds Avg. Index TR
6 month -2.19% -1.39% -1.73%
1 year 1.45% 1.78% 2.29%
5 year* 5.26% 5.15% 6.83%
10 year* N/A N/A N/A
Investment performance does not reflect the
deduction of any front-end sales charge.
TR represents total return. Source: Lipper
Analytical Services, Inc.
*Average annual return
credit quality
distribution
as of 6.30.99
PIE CHARTS HERE (4)
National
AAA 43%
AA 27%
A 9%
BBB 3%
cash equivalents 18%
California
AAA 55%
AA 7%
A 23%
cash equivalents 15%
Maryland
AAA 54%
AA 32%
BBB 8%
cash equivalents 6%
Virginia
AAA 40%
AA 41%
A 4%
cash equivalents 15%
<PAGE>
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
Calvert National Municipal Intermediate Fund
$13,988
Lehman Municipal 10 Year Bond Index TR$15,
370
Lipper Intermediate Municipal Debt Funds
Average $14,191
California
LINE GRAPH HERE
Calvert California Municipal Intermediate
Fund $14,003
Lehman Municipal 10 Year Bond Index TR$16,
092
Lipper CA Intermediate Municipal Debt Funds
Average $14,548
Maryland
LINE GRAPH HERE
Calvert Maryland Municipal Intermediate Fund
$12,595
Lehman Municipal 10 Year Bond Index TR$13,
563
Lipper Other States Intermediate Municipal
Debt Funds Average $12,412
Virginia
LINE GRAPH HERE
Calvert Virginia Municipal Intermediate Fund
$12,589
Lehman Municipal 10 Year Bond Index TR$13,
563
Lipper Virginia Intermediate Municipal Debt
Funds Average $12,324
National
average annual
total return
as of 6.30.99
1 year -1.32%
5 year 5.05%
inception 5.09%
(9.30.92)
California
average annual
total return
as of 6.30.99
1 year -0.90%
5 year 4.51%
inception 4.86%
(5.29.92)
Maryland
average annual
total return
as of 6.30.99
1 year -1.34%
5 year 4.98%
inception 4.09%
(9.30.93)
Virginia
average annual
total return
as of 6.30.99
1 year -1.41%
5 year 4.66%
inception 4.08%
(9.30.93)
<PAGE>
NATIONAL PORTFOLIO
STATEMENT OF NET ASSETS
June 30, 1999
Principal
Municipal Obligations - 98.5% Amount
Value
California - 9.2%
Orange County Local Transportation Authority
Sales Tax Revenue
Bonds, 6.00%, 2/15/09 $2,000,000 $2,181
,520
Regents of the University of California, Los
Angeles Lease Revenue
Bonds, 6.00%, 5/15/02 440,590 455,178
San Mateo County Transit District Sales Tax
Revenue Bonds,
5.25%, 6/1/15, MBIA Insured 1,000,000
1,010,730
Santa Clara Financing Authority Lease
Revenue Bonds,
6.00%, 11/15/12, AMBAC Insured
2,000,000 2,193,220
Colorado - 1.4%
Boulder County MFH Revenue Bonds VRDN,
4.00%, 11/25/31,
LOC: Chase Manhattan 100,000 100,000
Central River MFH Revenue Bonds VRDN, 3.90%,
12/25/30,
LOC: Texas Commerce 800,000 800,000
Florida - 8.5%
Dade County Education Facilities Authority
Revenue Bonds,
6.00%, 4/1/08, MBIA Insured 1,000,000
1,078,920
Duval County MFH Revenue Bonds VRDN, 4.35%,
7/1/25,
LOC: Household Financial Corp.
3,000,000 3,000,000
State MFH Revenue Bonds, 5.75%, 12/1/07,
LOC: Heller Financial 300,000 305,751
Sunrise Utility System Revenue Bonds, 5.50%,
10/1/12,
AMBAC Insured 1,000,000 1,039,090
Georgia - 7.7%
Atlanta Water and Wastewater Revenue Bonds,
5.50%, 11/1/14,
FGIC Insured 2,000,000 2,069,140
Fulton County Building Authority Zero Coupon
Revenue Bonds, 1/1/11 2,870,000 1,574,166
GO Bonds, 5.25%, 10/1/14 1,200,000 1,218,828
Hawaii - 0.3%
Hawaii State Department of Budget and
Finance Revenue Bonds
VRDN, 4.50%, 12/01/21,
LOC: Union Bank California 200,000
200,000
Indiana - 1.7%
Frankfort Economic Development Revenue Bonds
VRDN,
5.35%, 1/1/23,
LOC: Dai-Ichi Kangyo Bank 1,100,000
1,100,000
Kentucky - 2.5%
Glasgow Industrial Building Revenue Bonds
VRDN, 5.425%, 6/1/20,
LOC: Bank Tokyo Mitsubishi 1,600,000
1,600,000
<PAGE>
Principal
Municipal Obligations - (Cont'd)
Amount Value
Louisiana - 0.6%
Public Facility Authority Student Loan
Revenue Bonds,
6.50%, 3/1/02 $330,000 $342,682
Maryland - 6.0%
Cambridge Economic Development Authority
Revenue Bonds,
7.25%, 4/1/04 735,000 775,638
Cecil County Health Department
COPs, 7.875%, 7/1/14 1,176,000 1,258,320
Prince Georges County Economic Development
Authority Revenue
Bonds, 5.68%, 8/1/11, LOC: First National
Bank of Maryland,
(Tender 1/1/01 @100) 1,747,800 1,768,074
Massachusetts - 1.6%
Special Obligation Revenue Bonds,
5.50%, 6/1/13 1,000,000 1,034,430
Michigan - 6.1%
Detroit Water Supply Revenue Bonds, 6.00%,
7/1/14, MBIA Insured 1,000,000 1,082,620
Higher Education Facilities Authority
Revenue Bonds:
6.00%, 11/1/03 1,545,000 1,601,099
7.00%, 11/1/05 610,000 678,576
Oakland County Economic Development Corp.
Limited Obligation
Revenue Bonds, Cranbrook Educational
Community,
6.375%, 11/1/14 500,000 544,740
New Jersey - 3.6%
Transportation Authority Revenue Bonds,
6.50%, 6/15/11,
MBIA Insured 2,000,000 2,257,900
New York - 12.0%
Long Island Power Authority Electric System
Revenue Bonds,
5.50%, 12/1/13, FSA Insured 1,000,000
1,030,130
New York City Transitional Finance Authority
Revenue Bonds,
5.25%, 5/1/14 2,815,000 2,803,318
Orange County IDA VRDN,
5.115%, 12/1/05, LOC: Summit Bank
1,795,000 1,795,000
State Environmental Pollution Control
Revenue Bonds,
5.70%, 1/15/12 500,000 522,450
State Local Government Assistance Corp.
Revenue Bonds,
6.00%, 4/1/14 1,000,000 1,083,760
Westchester County IDA Civic Facility
Revenue Bonds, 6.25%, 4/1/05 395,000
409,477
Pennsylvania - 0.4%
Allegheny County Higher Education Building
Authority Revenue
Bonds, 6.00%, 2/15/08 230,000 241,663
South Dakota - 1.7%
Heartland Consumers Power District Revenue
Bonds, 6.00%, 1/1/12,
FSA Insured 1,000,000 1,079,560
<PAGE>
Principal
Municipal Obligations - (Cont'd)
Amount Value
Tennessee - 1.6%
Shelby County Tennessee GO Bonds,
5.25%, 4/1/13 $1,000,000 $1,011
,650
Texas - 6.5%
Harris County GO Bonds, 5.75%, 10/1/14
2,000,000 2,119,020
Harris County IDA VRDN, 5.35%, 8/1/01,
LOC: Sakura Bank 2,000,000 2,000,000
Virginia - 7.4%
Arlington County Community Housing Finance
Revenue Bonds,
6.00%, 12/01/09 273,404 273,404
Hampton GO Bonds, 5.00%, 1/15/13
1,500,000 1,478,220
Richmond Metropolitan Authority Expressway
Revenue Bonds,
5.25%, 7/15/12, FGIC Insured 1,000,000
1,012,230
Southeastern Public Service Authority
Revenue Bonds, 5.00%, 7/1/15 2,000,000
1,948,420
Washington - 1.6%
Snohomish County School District 2 GO Bonds,
5.00%, 12/1/07 1,000,000 1,008,850
Wisconsin - 6.9%
GO Bonds:
5.50%, 11/1/12 2,000,000 2,076,580
5.50%, 11/1/13 2,255,000 2,338,796
Other - 11.2%
Fort Mojave Indian Tribe of Arizona,
California and Nevada Public
Facilities Combined LO and Revenue Bonds
Adjustable Rate and Tender Series of 1993,
10.75%, 12/1/18 430,020 430,020
Puerto Rico Commonwealth Highway and
Transportation
Revenue Bonds, AMBAC Insured:
5.50%, 7/1/12 1,000,000 1,045,430
5.50%, 7/1/13 2,000,000 2,087,520
Puerto Rico Electric Power Authority Revenue
Bonds, 5.25%, 7/1/13,
MBIA Insured 2,000,000 2,024,880
Puerto Rico GO Bonds, 5.50%, 7/1/13
1,500,000 1,545,870
Total Municipal Obligations (Cost
$63,166,204) 62,636,870
Options Purchased - 0.1% Contracts
Put Options on September U.S. Treasury Bond
Futures, Expiration
8/20/99, Strike Price 114 12
75,000
Total Options (Premium $72,875)
75,000
TOTAL INVESTMENTS
(Cost & Premium $63,239,079) - 98.6%
62,711,870
Other assets and liabilities, net -
1.4% 910,156
Net Assets - 100% $63,622,026
<PAGE>
NET ASSETS CONSIST OF:
Paid-in capital applicable to 6,159,393
outstanding Class A shares
of common stock, $0.01 par value with
250,000,000
Class A shares authorized
$63,796,537
Undistributed net investment income (loss)
24,347
Accumulated net realized gain (loss) on
investments 328,351
Net unrealized appreciation (depreciation)
on investments (527,209)
Net Assets $63,622,026
Net Asset Value Per Share
$10.33
See notes to financial statements.
<PAGE>
CALIFORNIA PORTFOLIO
STATEMENT OF NET ASSETS
June 30, 1999
Principal
Municipal Obligations - 98.1% Amount
Value
California - 90.4%
Anaheim Public Financing Authority Lease
Revenue Bonds,
6.00%, 9/1/14, FSA Insured $1,000,000
$1,093,070
Fontana COPs VRDN, 5.00%, 7/1/21 LOC:
Sumitomo
Trust & Banking 1,400,000 1,400,000
GO Bonds, 6.25%, 9/1/12 1,000,000 1,116,370
Los Angeles MFH Revenue Bonds,
5.85%, 12/1/27 3,000,000 3,235,410
Los Angeles School District GO Bonds, 6.00%,
7/1/11, FGIC Insured 2,360,000 2,575,539
Marin County Housing Authority VRDN, 5.65%,
10/15/29,
LOC: Dai-Ichi Kangyo Bank 1,850,000
1,850,000
Metropolitan Water District GO Bonds,
5.25%, 3/1/13 1,000,000 1,016,270
Orange County Local Transportation Authority
Sales Tax
Revenue Bonds, 6.00%, 2/15/09 1,000,000
1,090,760
Port of Oakland Revenue Bonds, 7.00%,
11/1/02,
MBIA Insured 1,000,000 1,088,510
Sacramento COPs:
6.75%, 3/1/02 409,444 416,028
6.50%, 1/1/04 984,781 1,012,444
Sacramento City Financing Authority Revenue
Bonds,
5.00%, 11/1/14 1,000,000 975,880
San Diego County Water Authority
COPs, 5.75%, 5/1/11 1,000,000 1,068,160
San Jose Redevelopment Agency Allocation
Bonds, 6.00%, 8/1/09,
MBIA Insured 1,000,000 1,094,170
San Mateo County Transit District Sales Tax
Revenue Bonds, 5.25%, 6/1/15,
MBIA Insured 1,000,000 1,010,730
Santa Clara Financing Authority Lease
Revenue Bonds, 6.00%,
11/15/12, AMBAC Insured 2,000,000
2,193,220
Southern California Public Power Authority
Revenue Bonds,
6.75%, 7/1/13, FSA Insured 1,800,000
2,098,602
Southern California Rapid Transit District
Special Assessment Bonds,
5.90%, 9/1/07, AMBAC Insured 1,000,000
1,087,910
State Department of Water Resources Revenue
Bonds,
6.00%, 12/1/10 1,000,000 1,098,040
State Public Works Lease Revenue Bonds,
5.625%, 3/1/16,
AMBAC Insured 1,000,000 1,030,680
Statewide Commmunity Development Authority
MFH
Revenue Bonds VRDN, 3.80%, 7/1/27,
LOC: Banque Paribas 900,000 900,000
Statewide Development Authority MFH Revenue
Bonds,
8.50%, 11/1/00 601,000 607,719
Walnut Valley Unified School District GO
Bonds, 6.10%, 8/1/08,
AMBAC Insured 1,000,000 1,104,850
<PAGE>
Principal
Municipal Obligations - (Cont'd)
Amount Value
Territories - 7.7%
Guam Government LO Revenue Bonds, 5.50%,
11/1/08, AMBAC Insured $1,000,000 $1,051
,340
Puerto Rico Commonwealth Highway and
Transportation
Revenue Bonds, 5.50%, 7/1/13,
AMBAC Insured 1,465,000 1,529,108
Total Municipal Obligations (Cost
$32,400,406) 32,744,810
Options Purchased - 0.1% Contracts
Put Options on September U.S. Treasury Bond
Futures,
Expiration 8/20/99, Strike Price 114
12 37,500
Total Options (Premium $35,656)
37,500
TOTAL INVESTMENTS
(Cost and Premium $32,436,062) -
98.2% 32,782,310
Other assets and liabilities, net - 1.8%
599,774
Net Assets - 100% $33,382,084
NET ASSETS CONSIST OF:
Paid-in capital applicable to 3,224,477
outstanding Class A shares
of common stock, $0.01 par value with
250,000,000
Class A shares authorized
$33,445,654
Undistributed net investment income (loss)
16,321
Accumulated net realized gain (loss) on
investments (426,139)
Net unrealized appreciation (depreciation)
on investments 346,248
Net Assets $33,382,084
Net Asset Value Per Share
$10.35
See notes to financial statements.
<PAGE>
MARYLAND PORTFOLIO
STATEMENT OF NET ASSETS
June 30, 1999
Principal
Municipal Obligations - 97.5% Amount
Value
Maryland - 72.7%
Anne Arundel County GO Bonds, 5.125%,
4/15/09 $500,000
$506,080
Baltimore City GO Bonds:
8.90%, 10/15/99, MBIA Insured 385,000
391,114
6.00%, 10/15/04, AMBAC Insured
500,000 535,900
Cambridge Economic Development Revenue
Bonds,
7.25%, 4/1/04 665,000 701,768
Carroll County GO Bonds, 6.25%, 11/1/08,
(Prerefunded 11/1/01 @ 102) 400,000
427,056
Cecil County GO Bonds, 5.10%, 12/1/07,
FGIC Insured 500,000 509,565
Cecil County Health Department COPs,
7.875%, 7/1/14 430,000 460,100
Charles County GO Bonds, 5.00%, 3/1/09
615,000 620,991
GO Bonds:
4.75%, 3/1/08 700,000 699,958
5.00%, 8/1/11 500,000 500,700
Harford County GO Bonds, 5.50%, 12/01/07
500,000 526,465 Health & Higher
Education Facilities Authority
Revenue Bonds, 6.00%, 7/1/10 300,000
325,416
Housing & Community Development Revenue
Bonds,
5.05%, 4/1/08 500,000 502,630
Howard County GO Bonds, 5.25%, 8/15/05
400,000 416,752
State Economic Development Authority Revenue
Bonds,
8.625%, 10/1/19 500,000 571,725
Washington Suburban Sanitary District
Revenue
Bonds, 5.00%, 6/1/09 500,000 504,655
Territories - 24.8%
Puerto Rico Aqueduct & Sewer Authority
Revenue Bonds,
6.00%, 7/1/09, AMBAC Insured 500,000
545,560 Puerto Rico Commonwealth Highway and
Transportation Revenue Bonds:5.50%, 7/1/12,
AMBAC Insured 700,000 731,801
6.25%, 7/1/13, MBIA Insured
1,000,000 1,118,360
Puerto Rico Electric Power Authority VRDN,
3.38%, 7/1/22,
BPA: Societe Generale, MBIA Insured
400,000 400,000
TOTAL INVESTMENTS
(Cost $10,830,342) - 97.5
10,996,596
Other assets and liabilities, net -
2.5% 278,862
Net Assets - 100% $11,275,458
<PAGE>
NET ASSETS CONSIST OF:
Paid-in capital applicable to 2,250,971
outstanding Class A shares
of common stock, $0.01 par value with
250,000,000
Class A shares authorized
$11,231,530
Undistributed net investment income (loss)
13,113
Accumulated net realized gain (loss) on
investments (135,439)
Net unrealized appreciation (depreciation)
on investments 166,254
Net Assets $11,275,458
Net Asset Value Per Share
$5.01
See notes to financial statements.
<PAGE>
VIRGINIA PORTFOLIO
STATEMENT OF Net assets
June 30, 1999
Principal
Municipal Obligations - 98.0% Amount
Value
Virginia - 85.9%
Arlington County Community Housing Finance
Revenue Bonds,
6.00%, 12/01/09 $487,000 $487,721
Arlington County GO Bonds, 6.00%, 6/1/11
1,000,000 1,091,760
Blue Ridge Regional Jail Facility Revenue
Bonds, 5.25%, 12/1/08,
MBIA Insured 500,000 510,785
Chesapeake Bay Bridge and Tunnel Revenue
Bonds, 5.50%, 7/1/06,
FGIC Insured 450,000 470,723
Fairfax County IDA Revenue Bonds:
5.50%, 8/15/08 500,000 518,850
4.60%, 8/15/09 460,000 440,343
Fairfax County Revenue Bonds, 5.0%, 6/01/06
750,000 767,580
Hampton City GO Bonds, 5.90%, 1/15/07
400,000 431,392
Hanover County IDA Revenue Bonds, 5.30%,
8/15/07,
MBIA Insured 500,000 514,595
Henrico County IDA Revenue VRDN, 3.85%,
10/1/00,
LOC: Tokai Bank 1,700,000 1,700,000
Loudon County GO Bonds, 5.25%, 12/1/13
500,000 505,020
Metropolitan Washington Airport Authority
Revenue Bonds,
5.60%, 10/1/06, MBIA Insured 300,000
314,718
Northern Virginia Transportation District
Revenue Bonds,
5.125%, 5/15/10 500,000 502,270
Peninsula Ports Health System Revenue Bonds,
6.00%, 7/1/01 300,000 310,212
Riverside Regulatory Jail Authority Revenue
Bonds, 5.70%, 7/1/08,
MBIA Insured 450,000 472,990
State GO Bonds, 5.00%, 6/1/07 500,000
511,130
State Housing Authority Revenue Bonds,
6.75%, 7/1/11 120,000 120,011
State MFH Revenue Bonds, 5.85%, 5/1/08
500,000 533,065
State Public Building Authority Facilities
Revenue Bonds,
5.00%, 8/1/10 600,000 597,954
State Public Building Authority Revenue
Bonds, Series 1992 A,
6.00%, 8/1/03 400,000 418,132
State Public School Authority Revenue Bonds,
Series 1994 A,
6.00%, 8/1/03 200,000 212,070
University of Virginia Revenue Bonds,
5.125%, 6/1/12 1,040,000 1,039,470
Virginia Beach GO Bonds, 5.40%, 7/15/08
340,000 352,240
Washington County IDA Revenue Bonds,
5.625%, 7/1/02 320,000 327,053
Winchester IDA Revenue Bonds,
6.05%, 10/1/05, Asset Guaranty Insured
300,000 321,864
<PAGE>
Principal
Municipal Obligations - (Cont'd)
Amount Value
Territories - 12.1%
Puerto Rico Aqueduct & Sewer Authority
Revenue Bonds,
6.00%, 7/1/09, AMBAC Insured $500,000
$545,560
Puerto Rico Commonwealth Highway and
Transportation Revenue Bonds:
5.50%, 7/1/12, AMBAC Insured 700,000
731,801
5.50%, 7/1/13 500,000 515,290
Puerto Rico Commonwealth Infrastructure
Revenue Bonds
VRDN, 3.54%, 7/01/08,
BPA: Bank of America, AMBAC Insured100,000
100,000
TOTAL INVESTMENTS
(Cost $15,292,173) - 98.0%
15,364,599
Other assets and liabilities, net -
2.0% 311,913
Net Assets - 100% $15,676,512
NET ASSETS CONSIST OF:
Paid-in capital applicable to 3,108,131
outstanding Class A shares
of common stock, $0.01 par value with
250,000,000
Class A shares authorized
$15,646,467
Undistributed net investment income (loss)
16,117
Accumulated net realized gain (loss) on
investments (58,498)
Net unrealized appreciation (depreciation)
on investments 72,426
Net Assets $15,676,512
Net Asset Value Per Share
$5.04
Abbreviations:
AMBAC: American Municipal Bond Assurance
Corp.
COPs : Certificates of Participation
FGIC: Financial Guaranty Insurance Company
FSA: Financial Security Advisor
GO: General Obligation
IDA: Industrial Development Authority
LO: Limited Obligation
MBIA: Municipal Bond Insurance Association
MFH: Multi-Family Housing
VRDN: Variable Rate Demand Notes
Explanation of Guarantees:
GA: Guaranty Agreement
LOC: Letter of Credit
INSUR: Insurance
TOA: Tender Option Agreement
See notes to financial statements.
<PAGE>
Statements of Operations
Six months ended June 30, 1999
NationalCalifornia
Net Investment Income PortfolioPortfolio
Investment Income
Interest income $1,640,671$851,471
Expenses
Investment advisory fee 199,893
105,033
Transfer agency fees and expenses
23,093 11,832
Accounting fees 8,352 5,906
Directors' fees and expenses 2,744
1,492
Administrative fees 32,225 15,426
Custodian fees 7,675 5,209
Registration fees 10,646 2,718
Reports to shareholders 6,211
3,002
Professional fees 14,145 7,447
Miscellaneous 3,531 1,638
Total expenses 308,515 159,703
Fees paid indirectly (9,179)
(5,114)
Net expenses 299,336 154,589
Net Investment Income 1,341,335
696,882
Realized and Unrealized
Gain (Loss) on Investments
Net realized gain (loss) on securities
328,351 175,500
Change in unrealized appreciation
or (depreciation) (2,996,032)(1,424
,600)
Net Realized and Unrealized
Gain (Loss) on Investments
(2,667,681) (1,249,100)
Increase (Decrease) in Net Assets
Resulting from Operations
$(1,326,346) $(552,218)
See notes to financial statements.
<PAGE>
Statements of Operations
Six months ended June 30, 1999
Maryland Virginia
Net Investment Income PortfolioPortfolio
Investment Income
Interest income $294,198 $346,801
Expenses
Investment advisory fee 35,487
43,143
Transfer agency fees and expenses
7,400 11,372
Accounting fees 3,972 4,246
Directors' fees and expenses 508
625
Administrative fees 3,961 4,907
Custodian fees 2,861 3,665
Registration fees 1,849 1,176
Reports to shareholders 1,486
1,506
Professional fees 2,501 3,050
Miscellaneous 821 942
Total expenses 60,846 74,632
Fees paid indirectly (2,717)
(2,102)
Net expenses 58,129 72,530
Net Investment Income 236,069
274,271
Realized and Unrealized
Gain (Loss) on Investments
Net realized gain (loss) on securities
13,523 3,003
Change in unrealized appreciation
or (depreciation) (464,174)(602,334)
Net Realized and Unrealized
Gain (Loss) on Investments
(450,651) (599,331)
Increase (Decrease) in Net Assets
Resulting from Operations
$(214,582) $(325,060)
See notes to financial statements.
<PAGE>
National Portfolio
Statements of Changes in Net Assets
Six Months EndedY
ear Ended
June 30,December
31,
Increase (Decrease) in Net Assets
1999 1998
Operations
Net investment income $1,341,335$2,756,
891
Net realized gain (loss) 328,351
1,920,349
Change in unrealized appreciation
or (depreciation) (2,996,032)(1,011
,208)
Increase (Decrease) in Net Assets
Resulting from Operations
(1,326,346) 3,666,032
Distributions to shareholders from:
Net investment income (1,331,213)(2,804
,195)
Net realized gain (351,929)(548,194)
Total distributions (1,683,142)(3,352
,389)
Capital share transactions:
Shares sold 6,922,70814,703,281
Shares issued from mergers (Note A)
- ---- 24,529,727
Reinvestment of distributions 1,408,009
2,734,125
Shares redeemed (12,763,706)(20,1
49,637)
Total capital share transactions
(4,432,989) 21,817,496
Total Increase (Decrease) in Net Assets
(7,442,477) 22,131,139
Net Assets
Beginning of period 71,064,50348,933,
364
End of period (including undistributed net
investment income of $24,347 and
$14,225, respectively) $63,622,026$71,06
4,503
Capital Share Activity
Shares sold 643,750
1,358,355
Shares issued from mergers (Note A)
- ---- 2,288,901
Reinvestment of distributions 132,096
253,141
Shares redeemed (1,186,927)(1,865
,402)
Total capital share activity (411,081)
2,034,995
See notes to financial statements.
<PAGE>
California Portfolio
Statements of Changes in Net Assets
Six Months EndedY
ear Ended
June 30,December
31,
Increase (Decrease) in Net Assets
1999 1998
Operations
Net investment income $696,882$1,446,231
Net realized gain (loss) 175,500
243,240
Change in unrealized appreciation
or (depreciation) (1,424,600)128,889
Increase (Decrease) in Net Assets
Resulting from Operations
(552,218) 1,818,360
Distributions to shareholders from
Net investment income (699,969)(1,478,5
31)
Capital share transactions:
Shares sold 1,302,8458,557,713
Reinvestment of distributions 510,207
1,082,093
Shares redeemed (4,142,181)(8,101
,211)
Total capital share transactions
(2,329,129) 1,538,595
Total Increase (Decrease) in Net Assets
(3,581,316) 1,878,424
Net Assets
Beginning of period 36,963,40035,084,
976
End of period (including undistributed
net investment income of $16,321
and $19,408, respectively) $33,382,084
$36,963,400
Capital Share Activity
Shares sold 121,779
798,741
Reinvestment of distributions 47,987
101,599
Shares redeemed (387,445)(757,935)
Total capital share activity (217,679)
142,405
See notes to financial statements.
<PAGE>
Maryland Portfolio
Statements of Changes in Net Assets
Six Months EndedY
ear Ended
June 30,December
31,
Increase (Decrease) in Net Assets
1999 1998
Operations
Net investment income $236,069 $511,945
Net realized gain (loss) 13,523
141,854
Change in unrealized appreciation
or (depreciation) (464,174)(64,237)
Increase (Decrease) in Net Assets
Resulting from Operations
(214,582) 589,562
Distributions to shareholders from
Net investment income (237,110)(520,348)
Capital share transactions:
Shares sold 559,496 2,659,203
Reinvestment of distributions 200,976
433,569
Shares redeemed (1,198,301)(3,434
,067)
Total capital share transactions
(437,829) (341,295)
Total Increase (Decrease) in Net Assets
(889,521) (272,081)
Net Assets
Beginning of period 12,164,97912,437,
060
End of period (including undistributed
net investment income of $13,113
and $14,154, respectively) $11,275,458
$12,164,979
Capital Share Activity
Shares sold 108,211
515,343
Reinvestment of distributions 39,083
83,842
Shares redeemed (232,235)(663,691)
Total capital share activity (84,941)
(64,506)
See notes to financial statements.
<PAGE>
Virginia Portfolio
Statements of Changes in Net Assets
Six Months EndedY
ear Ended
June 30,December
31,
Increase (Decrease) in Net Assets
1999 1998
Operations
Net investment income $274,271 $566,684
Net realized gain (loss) 3,003
153,162
Change in unrealized appreciation
or (depreciation) (602,334)(25,744)
Increase (Decrease) in Net Assets
Resulting from Operations
(325,060) 694,102
Distributions to shareholders from
Net investment income (273,832)(564,133)
Capital share transactions:
Shares sold 2,911,0622,111,352
Reinvestment of distributions 249,112
530,051
Shares redeemed (1,323,570)(1,874
,183)
Total capital share transactions
1,836,604 767,220
Total Increase (Decrease) in Net Assets
1,237,712 897,189
Net Assets
Beginning of period 14,438,80013,541,
611
End of period (including undistributed
net investment income of $16,117
and $15,678, respectively) $15,676,512
$14,438,800
Capital Share Activity
Shares sold 565,907
405,658
Reinvestment of distributions 48,007
101,991
Shares redeemed (253,664)(361,378)
Total capital share activity 360,250
146,271
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 $49,805,260, $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 $66,384,068, $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.
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
<PAGE>
investment or in interest rates. The risk
associated with purchasing options is
limited to the premium originally paid.
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 Ameritas Acacia Mutual Holding
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. Under
the terms of the agreement, $42,774,
$22,869, $9,545, and $11,704 were payable at
period end for National, California,
Maryland and Virginia, respectively.
<PAGE>
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, $5,072,
$2,202, $291, and $496 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 each Portfolio.
The Distributor currently does not charge
any Distribution Plan expenses. For the six
months ended June 30, 1999, CDI received
sales charges in excess of the dealer
reallowance of $7,680, $7,416, $1,905, and
$1,872 for the National, California,
Maryland, and Virginia Portfolios,
respectively.
Calvert Shareholder Services, Inc. ("CSSI"),
an affiliate of the Advisor, is the
shareholder servicing agent for the Fund.
For its services, CSSI received fees of
$4,201, $2,095, $1,237, and $809 for the six
months ended June 30, 1999 for National,
California, Maryland, and Virginia,
respectively. Under the terms of the
agreement, $559, $336, $216, and $125 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 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.
Note C -- Investment Activity
During the period, purchases and sales of
investments, other than short-term
securities, were:
National California Maryland
Virginia
Purchases: $13,123,667 $1,069,500
$0 $765,352
Sales: 19,968,507 3,425,661 351,464
323,003
The cost of investments owned at June 30,
1999 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,
1999, and the net capital loss carryforwards
as of December 31, 1998 with expiration
dates.
Unrealized UnrealizedCapital
Loss Expiration
Appreciation DepreciationCarry
forwards Dates
National $619,021 $1,146,230 --
- --
California 625,213 278,965 $163,067
12/31/02
438,572 12/31/03
Maryland 259,431 93,177 148,962
12/31/02
Virginia 255,092 182,666 51,3971
2/31/02
10,106 12/31/03
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. The Fund had no
loans outstanding pursuant to this line of
credit at June 30, 1999.
<PAGE>
National Portfolio
Financial Highlights
Periods Ended
June 30,Dec. 31, Dec.31,
1999 1998 1997
Net asset value, beginning$10.82 $10.79
$10.56
Income from investment operations
Net investment income.21 .45 .50
Net realized and unrealized
gain (loss) (.43) .13 .23
Total from investment
operations (.22) .58 .73
Distributions from
Net investment income(.21)(.46) (.50)
Net realized gains(.06) (.09) --
Total distributions(.27)(.55) (.50)
Total increase (decrease) in net
asset value (.49) .03 .23
Net asset value, ending$10.33$10.82 $10.79
Total return * (2.10%) 5.46% 7.11%
Ratios to average net assets:
Net investment income4.03% (a) 4.17%
4.71%
Total expenses +.93% (a) .97% .97%
Net expenses .90% (a) .94% .94%
Portfolio turnover 24% 44% 29%
Net assets, ending (in thousands) $63,622
$71,065 $48,933
Number of shares outstanding,
ending (in thousands)6,1596,570 4,535
Years Ended
Dec. 31,Dec. 31, Dec. 31,
1996 1995 1994
Net asset value, beginning$10.62 $9.81
$10.42
Income from investment operations
Net investment income.50 .51 .50
Net realized and unrealized
gain (loss) (.06) .80 (.62)
Total from investment
operations .44 1.31 (.12)
Distributions from
Net investment income(.50)(.50) (.49)
Net realized gains -- -- --
Total distributions(.50)(.50) (.49)
Total increase (decrease) in net
asset value (.06) .81 (.61)
Net asset value, ending$10.56$10.62 $9.81
Total return * 4.32% 13.64% (1.18%)
Ratios to average net assets:
Net investment income4.83%4.97% 4.88%
Total expenses + 1.04% .96% --
Net expenses 1.01% .94% .69%
Expenses reimbursed---- -- .32%
Portfolio turnover 23% 57% 122%
Net assets, ending (in thousands) $45,612
$40,146 $36,159
Number of shares outstanding,
ending (in thousands)4,3193,780 3,686
<PAGE>
California Portfolio
Financial Highlights
Periods Ended
June 30,Dec. 31, Dec. 31,
1999 1998 1997
Net asset value, beginning$10.74 $10.63
$10.44
Income from investment operations
Net investment income.21 .45 .49
Net realized and unrealized
gain (loss) (.39) .12 .18
Total from investment
operations (.18) .57 .67
Distributions from
Net investment income(.21)(.46) (.48)
Total increase (decrease) in net
asset value (.39) .11 .19
Net asset value, ending$10.35$10.74 $10.63
Total return * (1.69%) 5.51% 6.61%
Ratios to average net assets:
Net investment income3.98% (a) 4.23%
4.64%
Total expenses +.91% (a) .90% .91%
Net expenses .88% (a) .88% .88%
Portfolio turnover 3% 12% 48%
Net assets, ending (in thousands) $33,382
$36,963 $35,085
Number of shares outstanding,
ending (in thousands)3,2243,442 3,300
Years Ended
Dec. 31,Dec. 31, Dec. 31,
1996 1995 1994
Net asset value, beginning$10.51 $9.81
$10.56
Income from investment operations
Net investment income.48 .47 .48
Net realized and unrealized
gain (loss) (.07) .69 (.76)
Total from investment
operations .41 1.16 (.28)
Distributions from
Net investment income(.48)(.46) (.47)
Net realized gains ---- -- --
Total distributions---- (.46) (.47)
Total increase (decrease) in net
asset value (.07) .70 (.75)
Net asset value, ending$10.44$10.51 $9.81
Total return * 4.04% 12.07% (2.57%)
Ratios to average net assets:
Net investment income4.59%4.59% 4.67%
Total expenses + .97% .91% --
Net expenses .94% .89% .76%
Expenses reimbursed---- -- .13%
Portfolio turnover 25% 47% 68%
Net assets, ending (in thousands) $35,693
$34,424 $34,111
Number of shares outstanding,
ending (in thousands)3,4193,276 3,476
<PAGE>
Maryland Portfolio
Financial Highlights
Periods Ended
June 30,Dec. 31, Dec. 31,
1999 1998 1997
Net asset value, beginning $5.21 $5.18
$5.03
Income from investment operations
Net investment income.10 .21 .23
Net realized and unrealized
gain (loss) (.20) .04 .15
Total from investment
operations (.10) .25 .38
Distributions from
Net investment income(.10)(.22) (.23)
Total increase (decrease) in net
asset value (.20) .03 .15
Net asset value, ending$5.01$5.21 $5.18
Total return * (1.89%) 4.88% 7.68%
Ratios to average net assets:
Net investment income3.99% (a) 4.13%
4.48%
Total expenses +1.03% (a) .97% .99%
Net expenses .98% (a) .93% .92%
Expenses reimbursed----------- ------
Portfolio turnover 0% 24% 13%
Net assets, ending (in thousands) $11,275
$12,165 $12,437
Number of shares outstanding,
ending (in thousands)2,2512,336 2,400
Years Ended
Dec. 31,Dec. 31, Dec. 31,
1996 1995 1994
Net asset value, beginning $5.06 $4.67
$5.05
Income from investment operations
Net investment income.23 .24 .24
Net realized and unrealized
gain (loss) (.04) .39 (.39)
Total from investment
operations .19 .63 (.15)
Distributions from
Net investment income(.22)(.24) (.23)
Total increase (decrease) in
net asset value (.03) .39 (.38)
Net asset value, ending$5.03$5.06 $4.67
Total return * 3.96% 13.66% (2.94%)
Ratios to average net assets:
Net investment income4.59%4.87% 5.01%
Total expenses + 1.00% .51% ----
Net expenses .94% .48% .17%
Expenses reimbursed.04% .43% .86%
Portfolio turnover 8% 11% 77%
Net assets, ending (in thousands) $12,023
$9,411 $7,429
Number of shares outstanding,
ending (in thousands)2,3381,860 1,589
<PAGE>
Virginia Portfolio
Financial Highlights
Periods Ended
June 30,Dec. 31, Dec. 31,
1999 1998 1997
Net asset value, beginning $5.25 $5.21
$5.10
Income from investment operations
Net investment income.10 .21 .22
Net realized and unrealized
gain (loss) (.21) .04 .11
Total from investment
operations (.11) .25 .33
Distributions from
Net investment income(.10)(.21) (.22)
Total increase (decrease) in net
asset value (.21) .04 .11
Net asset value, ending$5.04$5.25 $5.21
Total return* (2.19%) 4.88%
6.71%
Ratios to average net assets:
Net investment income3.81% (a) 4.03%
4.38%
Total expenses +1.04% (a) .97% .96%
Net expenses 1.01% (a) .93% .88%
Expenses reimbursed---- -- --
Portfolio turnover 2% 36% 8%
Net assets, ending (in thousands) $15,677
$14,439 $13,542
Number of shares outstanding,
ending (in thousands)3,1082,748 2,602
Years Ended
Dec. 31,Dec. 31, Dec. 31,
1996 1995 1994
Net asset value, beginning $5.13 $4.74
$5.06
Income from investment operations
Net investment income.22 .24 .23
Net realized and unrealized
gain (loss) (.03) .39 (.32)
Total from investment
operations .19 .63 (.09)
Distributions from
Net investment income(.22)(.24) (.23)
Total increase (decrease) in net
asset value (.03) .39 (.32)
Net asset value, ending$5.10$5.13 $4.74
Total return* 3.82% 13.54%
(2.04%)
Ratios to average net assets:
Net investment income4.35%4.86% 4.87%
Total expenses + 1.00% .54% ----
Net expenses .92% .51% .19%
Expenses reimbursed 03% .38% .86%
Portfolio turnover 4% 11% 65%%
Net assets, ending (in thousands) $12,618
$7,295 $5,866
Number of shares outstanding,
ending (in thousands)2,4751,423 1,239
(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. Total
expenses are presented net of expense
waivers and reimbursements.
<PAGE>
A special meeting of shareholders was
scheduled for February 24, 1999. There were
several proposals voted upon at the meeting.
A brief description of each proposal and the
number of votes received for, against, and
votes to abstain is shown below. All
proposals were passed.
Proposal 1 - To elect the Board of Trustees.
National
California
Nominees For Against For Against
Richard L. Baird, Jr. 4,024,536
383,258 1,701,486 758,068
Frank H. Blatz, Jr. 4,030,546 377,248
1,706,248 753,306
Frederick T. Borts 3,997,838 409,956
1,707,069 752,485
Charles E. Diehl 4,031,349 376,445
1,693,685 765,869
Douglas E. Feldman 4,025,954 381,840
1,707,323 752,231
Peter W. Gavian 4,031,756 376,038
1,707,069 752,485
John G. Guffey, Jr. 4,031,756 376,038
1,706,829 752,725
Barbara J. Krumsiek 4,031,756 376,038
1,706,195 753,359
M. Charito Kruvant 4,031,756 376,038
1,707,563 751,991
Arthur J. Pugh 4,031,756 376,038
1,707,563 751,991
David R. Rochat 4,031,756 376,038
1,707,563 751,991
D. Wayne Silby 4,031,756 376,038
1,707,563 751,991
Maryland Virginia
Nominees ForAgainst ForAg
ainst
Richard L. Baird, Jr. 1,469,323 66,8701
,425,509 244,699
Frank H. Blatz, Jr. 1,475,130 61,0631
,409,906 260,302
Frederick T. Borts 1,475,563 60,6301
,443,146 227,062
Charles E. Diehl 1,471,352 64,8411
,444,368 255,840
Douglas E. Feldman 1,444,473 91,7201
,444,368 255,840
Peter W. Gavian 1,471,696 64,4971
,444,368 255,840
John G. Guffey, Jr. 1,471,696 64,4971
,444,368 255,840
Barbara J. Krumsiek 1,476,242 59,5911
,444,368 255,840
M. Charito Kruvant 1,476,242 59,5911
,444,368 255,840
Arthur J. Pugh 1,476,24259,591 1,444,368
255,840
David R. Rochat 1,476,242 59,5911
,444,368 255,840
D. Wayne Silby 1,476,24259,591 1,444,368
255,840
<PAGE>
Proposal 2 - To approve amended fundamental
investment restrictions to: (a) delete
restrictions that are no longer required to
be fundamental due to changes in state laws
or which otherwise need not be fundamental;
and (b) to revise the language of those
restrictions that are still required to be
fundamental.
For Against Abstain
Broker Non-Vote
National 3,282,435 109,752
124,865 890,742
California 2,112,844 27,722
126,347 192,641
Maryland 1,162,634 35,423
48,459 289,677
Virginia 1,415,264 37,343
124,095 93,506
Proposal 3 - To approve a new investment
advisory agreement with the investment
advisor, Calvert Asset Management Company,
Inc. ("CAMCO").
For Against Abstain
National 4,140,563 120,934146
,296
California 2,308,396 26,357124,
800
Maryland 1,465,075 14,99456,123
Virginia 1,612,694 7,84949,663
Proposal 4 - To ratify the Board's selection
of auditors, PricewaterhouseCoopers LLP.
For AgainstAbstain
National 4,238,196 35,734 133,863
California 2,333,847 13,591 112,115
Maryland 1,494,628 1,265 40,298
Virginia 1,610,888 24,367 34,951
<PAGE>
Calvert Group and the Year 2000
Plans and Progress
We are now less than a year away from the
year 2000, a problematic date for computer
systems coded for two-character year format.
Entered as "00," the year 2000 would be
processed as 1900, a mistake that could foul
a variety of date-sensitive transactions.
As your mutual fund sponsor, our goal is
make sure there is no interruption in the
level of service you receive. In the summary
below, we've outlined the steps Calvert
Group is taking to ensure our systems
perform reliably.
Step One--Assess Systems and Software.
Develop an Action Plan.
In 1997, we identified all systems,
operating platforms and software potentially
affected by the millennium bug. These
included:
Calvert Group systems--portfolio trading,
sales contact and reporting and internal
management reporting
transfer agency systems--shareholder
record-keeping and transaction processing
subadvisor systems--investment accounting
other third-party data and service systems
We also formed a Y2K task force, led by
Calvert's vice president of technology. This
group has identified and prioritized our
efforts to achieve year 2000 compliance.
Step Two--Test for Compliance. Repair
Systems as Necessary.
Internal systems have been tested. We've
made repairs and moved modified code into
production. These systems are now fully
compliant. Transfer agency systems were re-
engineered for compliance in 1989. Recent
tests indicate these are, in fact,
compliant. The readiness of third-party
systems, including subadvisor systems, has
been evaluated. Based on information
received from these groups, we have found no
significant obstacles to compliance.
Step Three--Confirm Compliance. Finalize
Contingency Plan.
Testing of transfer agency systems will
continue through 1999 to ensure these remain
compliant and continue to interact correctly
with external systems and processes. The
transfer agency has established a back-up
site, should main systems fail, and
compliance testing of these contingency
measures are also underway. We are
developing contingency plans to ensure that
any unforeseen systems failures will not
adversely affect our operations or
inconvenience our shareholders.
For more information or to get an update on
remediation and testing efforts, please
visit us online at www.calvertgroup.com.
<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
recycled paper
using soy-
based inks
To Open an Account
800-368-2748
Yields and Prices
Calvert Information Network
(24 hours, 7 days a week)
800-368-2745
Service for Existing Account
Shareholders: 800-368-2745
Brokers: 800-368-2746
TDD for Hearing Impaired
800-541-1524
Branch Office
4550 Montgomery Avenue
Suite 1000 North
Bethesda, Maryland 20814
Registered, Certified
or Overnight Mail
Calvert Group
c/o NFDS, 6th Floor
1004 Baltimore
Kansas City, MO 64105-1807
Web Site
http://www.calvertgroup.com
Principal Underwriter
Calvert Distributors, Inc.
4550 Montgomery Avenue
Suite 1000 North
Bethesda, Maryland 20814
Calvert Group's
Family of Funds
Tax-Exempt Money Market Funds
CTFR Money Market Portfolio
CTFR California Money Market Portfolio
Taxable Money Market Funds
First Government Money Market Fund
CSIF Money Market Portfolio
Balanced Fund
CSIF Balanced Portfolio
Municipal Funds
CTFR Limited-Term Portfolio
CTFR Long-Term Portfolio
CTFR Vermont Municipal Portfolio
National Muni. Intermediate Portfolio
California Muni. Intermediate Portfolio
Maryland Muni. Intermediate Portfolio
Virginia Muni. Intermediate Portfolio
Taxable Bond Funds
CSIF Bond Portfolio
Income Fund
Equity Funds
CSIF Managed Index Portfolio
CSIF Equity Portfolio
Capital Accumulation Fund
CWV International Equity Fund
New Vision Small Cap Fund
New Africa Fund
<PAGE>
4550 Montgomery Avenue
Suite 1000 North
Bethesda, Maryland 20814
