JUNE 30, 2000
SEMI-ANNUAL
REPORT
CALVERT MUNICIPAL FUND, INC.
<PAGE>
CONTENTS
PRESIDENT'S LETTER
1
PORTFOLIO
MANAGER REMARKS
2
STATEMENT OF
NET ASSETS
5
STATEMENT OF OPERATIONS
11
STATEMENTS OF CHANGES IN NET ASSETS
12
NOTES TO
FINANCIAL STATEMENTS
14
FINANCIAL HIGHLIGHTS
17
DEAR SHAREHOLDERS:
THE FIRST SIX MONTHS OF 2000 HAVE OFFERED MIXED MESSAGES ON GROWTH AND INTEREST
RATES - AND SET A TONE OF CHALLENGE FOR INVESTORS AND FUND MANAGERS. STILL,
CAUTION AND DISCIPLINE HAVE ALWAYS BEEN A KEYNOTE OF OUR MANAGER'S INVESTMENT
STRATEGIES, AND INVESTOR CONFIDENCE IS OUR GOAL WHATEVER THE ECONOMIC CLIMATE.
THE FIRST QUARTER OF THE YEAR CONTINUED MUCH AS 1999 LEFT OFF, WITH CONTINUED
ECONOMIC EXPANSION, LOW INTEREST RATES, STRONG MARKET PERFORMANCE WITHIN CERTAIN
EQUITY SECTORS, AND FLATTENED YIELD CURVES IN THE BOND MARKET AS SHORT-TERM
INTEREST RATES ROSE EACH TIME THE FEDERAL FUNDS BENCHMARK WAS RAISED.
THE SECOND QUARTER OF THE YEAR OFFERED INVESTORS A DIFFERENT PICTURE. ECONOMIC
GROWTH APPEARED TO BE SLOWING AND SOME STOCK MARKET VALUATIONS PROVED
UNSUSTAINABLE. AFTER A SERIES OF RATE INCREASES, THE FED MADE THE DECISION ON
JUNE 28TH TO LEAVE ITS FED FUND RATES UNCHANGED AT 6.5% SINCE THE ECONOMY WAS
FINALLY SLOWING.
WHETHER THE FED IS RIGHT, ONLY TIME AND KEY INDICATORS WILL TELL. CERTAINLY NO
ONE IS RULING OUT THE POSSIBILITY OF FURTHER INTERVENTION LATER IN THE YEAR IF
MORE CHECKS ON INFLATIONARY PRESSURE ARE NEEDED. IF SUCH ACTIONS PROVE
NECESSARY, THE LONG-AWAITED BOND MARKET RECOVERY COULD BE SHORT-LIVED, WITH A
RETURN TO FLATTENING YIELDS FOR THE INVESTOR. MEANWHILE, WALL STREET APPEARS
CONFIDENT THAT THE ECONOMY IS IN FOR A SOFT LANDING - WITH SLOWER GROWTH IN
CORPORATE PROFITS AND STABILIZED RETURNS ON EQUITY INVESTMENTS.
WHAT SHOULD ALL THIS SIGNAL TO THE REASONABLE INVESTOR? THAT INVESTOR DISCIPLINE
AND THE NEED TO MAKE INFORMED DECISIONS IS AS IMPORTANT AS EVER BEFORE. AS
ALWAYS, WE ENCOURAGE YOU TO MAKE DECISIONS BASED ON YOUR FINANCIAL OBLIGATIONS
AND TOLERANCE FOR RISK. YOUR FINANCIAL PROFESSIONAL CAN SUGGEST STRATEGIES THAT
CAN KEEP YOU ON TRACK TO MEET YOUR OBJECTIVES.
WE APPRECIATE YOUR INVESTMENT IN CALVERT GROUP FUNDS AND LOOK FORWARD TO WORKING
WITH YOU TO ACHIEVE YOUR FINANCIAL GOALS.
SINCERELY,
BARBARA J. KRUMSIEK
PRESIDENT AND CEO
JULY 28, 2000
<PAGE>
EMMETT LONG IS A MEMBER OF THE CAMCO PORTFOLIO MANAGEMENT TEAM.
NATIONAL INTERMEDIATE SEEKS TO EARN THE HIGHEST LEVEL OF INTEREST INCOME EXEMPT
FROM FEDERAL INCOME TAXES, AND CALIFORNIA INTERMEDIATE SEEKS TO EARN THE HIGHEST
LEVEL OF INTEREST INCOME EXEMPT FROM FEDERAL AND CALIFORNIA 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
CUSIP NUMBER
NATIONAL 131616-20-3
CALIFORNIA 131616-10-4
CALVERT MUNICIPAL
INTERMEDIATE FUNDS
EFFECTIVE JUNE 16, 2000 THE MARYLAND AND VIRGINIA INTERMEDIATE PORTFOLIOS MERGED
INTO THE NATIONAL INTERMEDIATE PORTFOLIO.
WHAT WAS THE INVESTMENT CLIMATE OVER THE PAST SIX MONTHS?
CONCERN OVER INTEREST RATES DROVE RATES HIGHER IN MUNICIPAL FUNDS HIGHER
ESPECIALLY IN LONG FUNDS. AS PORTFOLIO MANAGERS ATTEMPTED TO SHORTEN THEIR
PORTFOLIOS, IT ALLOWED THE INTERMEDIATE PART OF THE CURVE TO OUTPERFORM THE
LONG-END EARLY IN THE QUARTER. AS THE QUARTER PROGRESSED, AND IT BECAME APPARENT
THAT ISSUANCE WOULD BE NEARLY 40% LOWER THAN THE FIRST HALF OF 1999, MUNICIPAL
PRICES STARTED MOVING HIGHER AND HIGHER. THERE WERE PERIODS IN THE LATE FIRST
QUARTER AND EARLY SECOND QUARTER WHERE DIPS IN THE MARKET ALLOWED US TO PICK UP
ISSUES AT ATTRACTIVE LEVELS.
NATIONAL INTERMEDIATE
WHAT WAS YOUR STRATEGY?
THE FUND WAS POSITIONED TO PERFORM VERY WELL IN A LOW RATE ENVIRONMENT AND
PERFORM AT OR NEAR THE AVERAGE AS THE INTEREST RATES ROSE. THIS PROVED TO BE A
VERY PRUDENT STRATEGY FOR THE FIRST HALF OF THE YEAR. THE DIVERSE MIX OF
SECURITIES THAT ALLOWED US TO TRADE OUT OF SOME OVERVALUED ISSUES AND INTO SOME
UNDERVALUED ISSUES, ENABLED US TO PICK UP INCREMENTAL INCOME. WE MAINTAINED OUR
OVERWEIGHTING IN NON-CALLABLE SECURITIES. THESE, IN PARTICULAR, PERFORMED VERY
WELL, BECAUSE THE FUND HELD HIGHER COUPONS FOR A DEFENSIVE POSITION AND LOWER
COUPONS FOR MARKET APPRECIATION AS THE MARKET RALLIED.
HOW DID THE FUND PERFORM?
THE FUND RETURNED 3.67% FOR THE SIX MONTHS ENDED JUNE 30, 2000, OUTPERFORMING
THE 2.99% FOR THE LIPPER AVERAGE OVER THE SAME PERIOD.
WHAT IS YOUR OUTLOOK?
NEAR THE END OF THE SECOND QUARTER THE FUNDS DURATION WAS SHORTENED
SIGNIFICANTLY AS A RESULT OF THE MERGER OF THE ASSETS FROM THE MARYLAND AND
VIRGINIA FUNDS, WHICH WERE CLOSED. WE WILL BE LOOKING FOR DIPS IN THE MARKET AND
THUS OPPORTUNITIES TO BUY ISSUES THAT WILL ADD VALUE IN THE 7-15 YEAR MATURITY.
WE WILL EVALUATE SECTORS TO FIND UNDERVALUED ISSUES AND WILL COMPLEMENT OUR
EXISTING HOLDINGS. THESE STEPS SHOULD ALLOW US TO SLOWLY EXTEND THE DURATION
BACK TO WHERE IT WAS PRIOR TO THE MERGER OF THE OTHER FUNDS ASSETS, AND TO
MAINTAIN THE PERFORMANCE DEMONSTRATED IN THE FIRST HALF OF THE YEAR.
<PAGE>
CALIFORNIA INTERMEDIATE
WHAT WAS THE INVESTMENT CLIMATE?
WHEN WE LOOKED AT THE PRICES THE MARKET DEMANDED FOR ISSUES, OUR FIRST
INCLINATION WAS THAT THEY WERE TOO HIGH - AND KEPT REMINDING OURSELVES OF THAT
THROUGH THE FIRST HALF OF THE YEAR. WHILE WE WANTED TO EXTEND THE FUND'S
DURATION SLIGHTLY EARLY IN YEAR, SOARING PRICES PREVENTED US FROM DOING SO. EVEN
THOUGH THERE WERE SMALL DIPS IN THE NATIONAL MARKET, CALIFORNIA CONTINUED TO
SOAR.
HOW DID THE FUND PERFORM?
FOR THE SIX MONTHS ENDED JUNE 30, 2000, THE FUND RETURNED 3.95%, SLIGHTLY
TRAILING THE 4.0% REPORTED BY THE LIPPER CA INTERMEDIATE MUNICIPAL DEBT FUNDS
AVERAGE.
WHAT WAS YOUR STRATEGY?
IN THE SPRING OF 1999 WE SHORTENED THE FUNDS DURATION. THIS ALLOWED THE FUND TO
OUTPERFORM ITS PEER GROUP AS INTEREST RATES WERE RISING. AT THE START OF THIS
YEAR THERE WAS AN UNCERTAINTY ABOUT THE CLEAR DIRECTION INTEREST RATES WERE
GOING. THE FUND CONTINUED TO OUTPERFORM ITS PEER GROUP EARLY IN THE YEAR, SO WE
DECIDED NOT TO IMMEDIATELY EXTEND THE DURATION. BY THE END OF THE SECOND
QUARTER, HOWEVER, THE FUND'S PERFORMANCE WAS SLIPPING AND THE CALIFORNIA MARKET
WAS OVERVALUED. WE DECLINED TO BUY INTO AN OVERVALUED MARKET. THIS PROVED TO BE
THE WRONG DECISION, HOWEVER; THE CALIFORNIA MARKET CONTINUED TO MOVE HIGHER. BY
THE HALF-YEAR END THE FUND'S PERFORMANCE WAS SLIGHTLY LAGGING THE AVERAGE FOR
ITS PEER GROUP.
WHAT IS YOUR OUTLOOK?
IN THE SECOND HALF OF THE YEAR WE WILL CONTINUE TO LOOK FOR OPPORTUNITIES TO
EXTEND THE DURATION, BUT WE WILL NOT PAY EXCESSIVE PRICE TO ACHIEVE THIS GOAL.
THERE APPEARS TO BE STRONG RETAIL APPETITE FOR MUNICIPALS RIGHT NOW. IF THIS
SUBSIDES, THE CALIFORNIA MARKET COULD CORRECT QUICKLY AND MOVE MORE INLINE WITH
WHERE IT HAS TRADED IN THE PAST. THIS WOULD PROVIDE THE OPPORTUNITY WE HAVE BEEN
LOOKING FOR TO EXTEND, AND GIVE THE FUND'S PERFORMANCE A BOOST.
JULY 28, 2000
PLEASE REMEMBER, THIS DISCUSSION REFLECTS THE VIEWS AND OPINIONS OF CALVERT
ASSET MANAGEMENT COMPANY AT JUNE 30, 2000, 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.
PORTFOLIO
STATISTICS
WEIGHTED
AVERAGE MATURITY
NATIONAL
6.30.00 7 YEARS
12.31.99 7 YEARS
CALIFORNIA
6.30.00 8 YEARS
12.31.99 8 YEARS
EFFECTIVE DURATION
NATIONAL
6.30.00 5.49 YEARS
12.31.99 4.89 YEARS
CALIFORNIA
6.30.00 6.42 YEARS
12.31.99 5.51 YEARS
MONTHLY
DIVIDEND YIELD
NATIONAL
6.30.00 3.63%
12.31.99 4.35%
CALIFORNIA
6.30.00 4.08%
12.31.99 4.05%
30 DAY SEC YIELD
NATIONAL
6.30.00 4.43%
12.31.99 4.48%
CALIFORNIA
6.30.00 4.13%
12.31.99 4.24%
<PAGE>
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 3.67% 2.91% 3.95% 4.06% 3.96%
1 YEAR 3.76% 2.50% 3.91% 3.78% 4.47%
5 YEAR* 4.79% 4.68% 4.69% 5.10% 5.97%
10 YEAR* N/A N/A 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
PORTFOLIO
STATISTICS
NATIONAL
AVERAGE ANNUAL
TOTAL RETURN
AS OF 6.30.00
1 YEAR 0.92%
5 YEAR 4.21%
INCEPTION 4.92%
(9.30.92)
CALIFORNIA
AVERAGE ANNUAL
TOTAL RETURN
AS OF 6.30.00
1 YEAR 1.08%
5 YEAR 4.10%
INCEPTION 4.74%
(5.29.92)
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.
GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT
[INSERT LINE GRAPHS HERE]
<PAGE>
NATIONAL PORTFOLIO
STATEMENT OF NET ASSETS
JUNE 30, 2000
PRINCIPAL
MUNICIPAL OBLIGATIONS - 95.6% AMOUNT VALUE
ALABAMA - 1.0%
STATE IDA REVENUE VRDN, 5.10%, 1/1/15, LOC: FLEET BANK
$765,000 $765,000
CALIFORNIA - 4.1%
SANTA CLARA FINANCING AUTHORITY LEASE REVENUE BONDS,
6.00%, 11/15/12, AMBAC INSURED 2,000,000 2,202,200
STATE PUBLIC SCHOOL AUTHORITY REVENUE BONDS, 5.75%, 8/1/08
500,000 525,685
REGENTS OF THE UNIVERSITY OF CALIFORNIA, LOS ANGELES LEASE
REVENUE BONDS, 6.00%, 5/15/02 302,381 308,027
FLORIDA - 3.2%
DADE COUNTY EDUCATION FACILITIES AUTHORITY REVENUE BONDS,
6.00%, 4/1/08, MBIA INSURED 1,000,000 1,062,210
SUNRISE UTILITY SYSTEM REVENUE BONDS, 5.50%, 10/1/12,
AMBAC INSURED 1,000,000 1,032,340
STATE MFH REVENUE BONDS, CYPRESS LAKE, 5.75%, 12/1/07,
LOC: HELLER FINANCIAL 300,000 298,848
GEORGIA - 5.7%
STATE MUNICIPAL GAS AUTHORITY REVENUE BONDS VRDN, 5.90%, 11/1/07,
LOC: BANK OF AMERICA, BAYER LANDESBANK, MORGAN GUARANTY TRUST,
& WACHOVIA BANK & TRUST 890,000 890,000
STATE GO BONDS, 5.25%, 10/1/14 1,200,000 1,198,704
GEORGE L SMITH II CONGRESS CENTER AUTHORITY REVENUE BONDS,
6.00%, 7/1/09 2,000,000 2,119,760
HAWAII - 1.2%
STATE DEPARTMENT OF BUDGET AND FINANCE REVENUE BONDS VRDN,
5.35%, 12/1/21, LOC: UNION BANK CALIFORNIA 884,250 884,250
INDIANA - 2.0%
FRANKFORT ECONOMIC DEVELOPMENT REVENUE BONDS VRDN,
6.70%, 1/1/23, LOC: DAI-ICHI KANGYO BANK 1,000,000 1,000,000
SHELBYVILLE ECONOMIC DEVELOPMENT REVENUE VRDN, 6.70%, 9/1/06,
LOC: INDUSTRIAL BANK OF JAPAN 450,000 450,000
KENTUCKY - 2.2%
GLASGOW INDUSTRIAL BUILDING REVENUE BONDS VRDN, 6.65%, 6/1/20,
LOC: BANK TOKYO MITSUBISHI 1,600,000 1,600,000
LOUISIANA - 3.3%
PUBLIC FACILITY AUTHORITY STUDENT LOAN REVENUE BONDS,
6.50%, 3/1/02, LOC: BANK OF NEW YORK, C/LOC: HIBERNIA
330,000 337,927
PUBLIC FACILITIES AUTHORITY VRDN, 4.82%, 9/1/28
2,100,000 2,100,000
<PAGE>
PRINCIPAL
MUNICIPAL OBLIGATIONS - CONT'D AMOUNT VALUE
MARYLAND - 7.6%
STATE COMMUNITY DEVELOPMENT REVENUE BONDS, 5.05%, 4/1/08
$300,000 $297,021
STATE ECONOMIC DEVELOPMENT AUTHORITY REVENUE BONDS,
8.625%, 10/1/19 500,000 543,695
CAMBRIDGE ECONOMIC DEVELOPMENT AUTHORITY REVENUE BONDS,
7.25%, 4/1/04 1,175,000 1,189,911
PRINCE GEORGES COUNTY ECONOMIC DEVELOPMENT AUTHORITY REVENUE
BONDS, 5.68%, 8/1/11, LOC: ALLFIRST, NA (TENDER 1/1/01 @100)
1,697,400 1,696,975
BALTIMORE IDA REVENUE VRDN, 4.75%, 8/1/16 300,000 300,000
CECIL COUNTY HEALTH DEPARTMENT COP, 7.875%, 7/1/14
1,558,000 1,593,024
MASSACHUSETTS - 1.4%
SPECIAL OBLIGATION REVENUE BONDS, 5.50%, 6/1/13
1,000,000 1,022,250
MICHIGAN - 5.2%
DETROIT WATER SUPPLY REVENUE BONDS, 6.00%, 7/1/14, MBIA INSURED
1,000,000 1,066,540
HIGHER EDUCATION FACILITIES AUTHORITY REVENUE BONDS VRDN:
6.00%, 11/1/03 1,545,000 1,568,809
7.00%, 11/1/05 610,000 661,124
OAKLAND COUNTY ECONOMIC DEVELOPMENT CORP. LO REVENUE BONDS,
6.375%, 11/1/14 500,000 531,060
NEW JERSEY - 5.9%
TRANSPORTATION AUTHORITY REVENUE BONDS, 6.50%, 6/15/11,
MBIA INSURED 2,000,000 2,229,240
STATE TURNPIKE AUTHORITY REVENUE BONDS, 6.00%, 1/1/13,
MBIA INSURED 2,000,000 2,140,040
NEW YORK - 10.1%
LONG ISLAND POWER AUTHORITY ELECTRIC SYSTEM REVENUE BONDS,
5.50%, 12/1/13, FSA INSURED 1,000,000 1,021,880
NEW YORK CITY TRANSITIONAL FINANCE AUTHORITY REVENUE BONDS,
5.25%, 5/1/14 2,815,000 2,757,884
WESTCHESTER COUNTY IDA CIVIC FACILITY REVENUE BONDS,
6.25%, 4/1/05 340,000 340,289
STATE LOCAL GOVERNMENT ASSISTANCE CORP. REVENUE BONDS,
6.00%, 4/1/14 1,000,000 1,064,630
ORANGE COUNTY IDA VRDN, 6.27%, 12/1/05, LOC: SUMMIT BANK
1,795,000 1,795,000
STATE ENVIRONMENTAL POLLUTION CONTROL REVENUE BONDS,
5.70%, 1/15/12 500,000 516,740
OKLAHOMA - 3.8%
IDA REVENUE BONDS, 5.50%, 8/15/09 2,760,000 2,813,351
PENNSYLVANIA - 0.3%
ALLEGHENY COUNTY HIGHER EDUCATION BUILDING AUTHORITY
REVENUE BONDS, 6.00%, 2/15/08 230,000 235,915
<PAGE>
PRINCIPAL
MUNICIPAL OBLIGATIONS - CONT'D AMOUNT VALUE
PUERTO RICO - 20.2%
GO BONDS, 5.50%, 7/1/13 $2,000,000 $2,058,100
AQUEDUCT & SEWER AUTHORITY REVENUE BOND,
6.00%, 7/1/09 1,000,000 1,086,890
HIGHWAY & TRANSPORTATION AUTHORITY HIGHWAY REVENUE,
6.25%, 7/1/13 1,000,000 1,108,340
INFRASTRUCTURE FINANCING AUTHORITY SPECIAL TAX REVENUE
VRDN, 4.42%, 7/1/28 1,000,000 1,000,000
ELECTRIC POWER AUTHORITY POWER REVENUE VRDN,
4.45%, 7/1/22, BPA: SOCIETE GENERALE 4,150,000 4,150,000
COMMONWEALTH HIGHWAY AND TRANSPORTATION REVENUE BONDS,
AMBAC INSURED:
5.50%, 7/1/12 2,400,000 2,498,520
5.50%, 7/1/13 3,000,000 3,113,040
SOUTH CAROLINA - 1.3%
ECONOMIC DEVELOPMENT AUTHORITY HEALTH FACILITIES
REVENUE BONDS, 6.50%, 10/1/04 1,000,000 989,050
TENNESSEE - 5.6%
KNOXVILLE COUNTY HEALTH EDUCATIONAL AND HOUSING FACILITIES
REVENUE BONDS, 7.25%, 1/7/31, MBIA INSURED
1,250,000 1,427,062
SEVIER COUNTY PUBLIC BUILDING AUTHORITY VRDN, 4.80%, 6/1/20,
LANDESBANK INSURED, BPA: AMBAC 2,700,000 2,700,000
VIRGINIA - 8.3%
ARLINGTON COUNTY GO BONDS, 6.00%, 6/1/11 1,000,000 1,076,330
HENRICO COUNTY IDA REVENUE VRDN, 6.20%, 10/1/08
2,500,000 2,500,000
SOUTHEASTERN PUBLIC SERVICE AUTHORITY REVENUE BONDS, 5.00%, 7/1/15
2,000,000 1,896,780
UNIVERSITY OF VIRGINIA REVENUE BONDS, 5.125%, 6/1/12
1,040,000 1,029,537
WASHINGTON - 1.4%
SNOHOMISH COUNTY SCHOOL DISTRICT 2 GO BONDS, 5.00%, 12/1/07
1,000,000 1,001,800
WEST VIRGINIA - 1.3%
ECONOMIC DEVELOPMENT AUTHORITY COMMERCIAL
DEVELOPMENT REVENUE BONDS, 8.00%, 4/1/25 1,000,000 997,160
<PAGE>
PRINCIPAL
MUNICIPAL OBLIGATIONS - CONT'D AMOUNT VALUE
FORT MOJAVE INDIAN TRIBE OF ARIZONA, CALIFORNIA AND NEVADA PUBLIC
FACILITIES COMBINED LO AND REVENUE BONDS ADJUSTABLE RATE AND
TENDER SERIES OF 1993, 12.50%, 12/1/18 $405,020 $405,020
TOTAL INVESTMENTS (COST $71,448,536 ) - 95.6% 71,197,958
OTHER ASSETS AND LIABILITIES, NET - 4.4% 3,277,200
NET ASSETS - 100% $74,475,158
NET ASSETS CONSIST OF:
PAID-IN CAPITAL APPLICABLE TO 7,256,287 OUTSTANDING CLASS A SHARES OF
COMMON STOCK, $0.01 PAR VALUE WITH 250,000,000
CLASS A SHARES AUTHORIZED $75,612,169
UNDISTRIBUTED NET INVESTMENT INCOME 4,861
ACCUMULATED NET REALIZED GAIN (LOSS) ON INVESTMENTS (891,294)
NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS (250,578)
NET ASSETS $74,475,158
NET ASSET VALUE PER SHARE $10.26
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
CALIFORNIA PORTFOLIO
STATEMENT OF NET ASSETS
JUNE 30, 2000
PRINCIPAL
MUNICIPAL OBLIGATIONS - 100.3% AMOUNT VALUE
CALIFORNIA - 84.2%
ANAHEIM PUBLIC FINANCING AUTHORITY LEASE REVENUE BONDS,
6.00%, 9/1/14, FSA INSURED $1,000,000 $1,093,110
FRESNO MFH REVENUE VRDN, 6.70%, 5/1/15, LOC: TOKAI BANK LTD.
900,000 900,000
LOS ANGELES COMMUNITY REDEVELOPMENT AGENCY MFH REVENUE
VRDN, 5.20%, 12/1/05, LOC: INDUSTRIAL BANK OF JAPAN
1,250,000 1,250,000
LOS ANGELES TRANSPORTATION COMMUNITY SALES TAX REVENUE VRDN,
4.60%, 8/20/03, LOC: CREDIT SUISSE 1,000,000 1,000,000
LOS ANGELES MFH REVENUE BONDS VRDN, 5.85%, 12/1/27
2,705,000 2,758,613
LOS ANGELES SCHOOL DISTRICT GO BONDS VRDN, 6.00%, 7/1/11,
FGIC INSURED 2,360,000 2,591,422
OCEANSIDE MFH REVENUE VRDN, 5.05%, 8/1/17,
SURBD: CONTINENTAL CASUALTY CO. 500,000 500,000
ORANGE COUNTY LOCAL TRANSPORTATION AUTHORITY SALES TAX
REVENUE BONDS, 6.00%, 2/15/09 1,000,000 1,088,290
PORT OF OAKLAND REVENUE BONDS, SERIES D, 7.00%, 11/1/02,
MBIA INSURED 1,000,000 1,059,550
SACRAMENTO COP:
6.75%, 3/1/02 281,916 285,984
6.50%, 1/1/04 812,184 829,735
SACRAMENTO CITY FINANCING AUTHORITY REVENUE BONDS, SERIES B,
5.00%, 11/1/14 1,000,000 979,890
SAN JOSE REDEVELOPMENT AGENCY ALLOCATION BONDS, 6.00%, 8/1/09,
MBIA INSURED 1,000,000 1,093,640
SANTA CLARA FINANCING AUTHORITY LEASE REVENUE BONDS,
6.00%, 11/15/12, AMBAC INSURED 2,000,000 2,202,200
SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY REVENUE BONDS,
6.75%, 7/1/13, FSA INSURED 1,800,000 2,100,402
SOUTHERN CALIFORNIA RAPID TRANSIT DISTRICT SPECIAL ASSESSMENT BONDS,
5.90%, 9/1/07, AMBAC INSURED 1,000,000 1,082,870
STATE DEPARTMENT OF WATER RESOURCES REVENUE BONDS,
6.00%, 12/1/10 1,000,000 1,102,620
STATE PUBLIC WORKS LEASE REVENUE BONDS, 5.625%, 3/1/16,
AMBAC INSURED 1,000,000 1,018,290
STATEWIDE DEVELOPMENT AUTHORITY MFH REVENUE BONDS
VRDN, 8.50%, 11/1/00 209,000 209,155
WALNUT VALLEY UNIFIED SCHOOL DISTRICT GO BONDS, 6.10%, 8/1/08,
AMBAC INSURED 1,000,000 1,102,420
<PAGE>
PRINCIPAL
MUNICIPAL OBLIGATIONS - 99.1% AMOUNT VALUE
OTHER - 16.1%
GUAM GOVERNMENT LO REVENUE BONDS,
5.50%, 11/1/08, AMBAC INSURED $1,000,000 $1,038,510
PITNEY BOWES CORPORATION LEASE TOPS TRUST CERTIFICATES VRDN,
4.99%, 10/10/01, BPA: PITNEY BOWES CREDIT, AMBAC INSURED
828,685 828,685
PUERTO RICO COMMONWEALTH HIGHWAY AND TRANSPORTATION
REVENUE BONDS, 5.50%, 7/1/13, AMBAC INSURED
1,465,000 1,520,201
PUERTO RICO ELECTRIC POWER AUTHORITY GO REVENUE BONDS,
4.45%, 7/1/22, BPA: SOCIETE GENERALE 1,250,000 1,250,000
TOTAL INVESTMENTS (COST $28,520,695) - 100.3% 28,885,587
OTHER ASSETS AND LIABILITIES, NET - (0.3%) (102,608)
NET ASSETS - 100% $28,782,979
NET ASSETS CONSIST OF:
PAID-IN CAPITAL APPLICABLE TO 2,792,048 OUTSTANDING CLASS A
SHARES OF COMMON STOCK, $0.01 PAR VALUE WITH 250,000,000
CLASS A SHARES AUTHORIZED $29,021,183
UNDISTRIBUTED NET INVESTMENT INCOME 18,068
ACCUMULATED NET REALIZED GAIN (LOSSES) ON INVESTMENTS (621,164)
NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS 364,892
NET ASSETS $28,782,979
NET ASSET VALUE PER SHARE $10.31
ABBREVIATIONS:
COPS : CERTIFICATES OF PARTICIPATION LO: LIMITED OBLIGATION
FGIC: FINANCIAL GUARANTY INSURANCE COMPANY MBIA: MUNICIPAL BOND
INSURANCE ASSOCIATION
FSA: FINANCIAL SECURITY ADVISOR MFH: MULTI-FAMILY HOUSING
GO: GENERAL OBLIGATION VRDN: VARIABLE RATE DEMAND NOTES
IDA: INDUSTRIAL DEVELOPMENT AUTHORITY
EXPLANATION OF GUARANTEES:
BPA: BOND-PURCHASE AGREEMENT LOC: LETTER OF CREDIT
C/LOC: CONFIRMING LETTER OF CREDIT SURBD: SURETY BOND
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2000
NATIONAL CALIFORNIA
NET INVESTMENT INCOME PORTFOLIO PORTFOLIO
INVESTMENT INCOME:
INTEREST INCOME $1,491,236 $755,534
EXPENSES:
INVESTMENT ADVISORY FEE 164,505 88,094
TRANSFER AGENCY FEES AND EXPENSES 22,810 11,127
ACCOUNTING FEES 10,113 6,387
DIRECTORS' FEES AND EXPENSES 2,229 1,466
ADMINISTRATIVE FEES 25,815 12,776
CUSTODIAN FEES 13,584 4,571
REGISTRATION FEES 9,661 2,191
REPORTS TO SHAREHOLDERS 6,565 3,181
PROFESSIONAL FEES 9,326 7,525
MISCELLANEOUS 2,843 1,068
TOTAL EXPENSES 267,451 138,386
FEES PAID INDIRECTLY (15,794) (6,925)
NET EXPENSES 251,657 131,461
NET INVESTMENT INCOME 1,239,579 624,073
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
NET REALIZED GAIN (LOSS) ON INVESTMENTS 9,560 13
CHANGE IN UNREALIZED APPRECIATION OR (DEPRECIATION)
685,755 503,234
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS 695,315 503,247
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $1,934,894 $1,127,320
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 2000 1999
OPERATIONS:
NET INVESTMENT INCOME $1,239,579 $2,658,964
NET REALIZED GAIN (LOSS) 9,560 (630,843)
CHANGE IN UNREALIZED APPRECIATION OR (DEPRECIATION)
685,755 (3,270,967)
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 1,934,894 (1,242,846)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME (1,237,642) (2,648,777)
NET REALIZED GAIN - (351,929)
TOTAL DISTRIBUTIONS (1,237,642) (3,000,706)
CAPITAL SHARE TRANSACTIONS:
SHARES SOLD 4,614,143 9,026,640
SHARES ISSUED FROM MERGERS (NOTE A) 20,731,495 -
REINVESTMENT OF DISTRIBUTIONS 1,027,197 2,501,605
SHARES REDEEMED (10,688,058) (20,256,067)
TOTAL CAPITAL SHARE TRANSACTIONS 15,684,777 (8,727,822)
TOTAL INCREASE (DECREASE) IN NET ASSETS 16,382,029 (12,971,374)
NET ASSETS
BEGINNING OF PERIOD 58,093,129 71,064,503
END OF PERIOD (INCLUDING UNDISTRIBUTED NET INVESTMENT
INCOME OF $4,861 AND $2,924, RESPECTIVELY)
$74,475,158 $58,093,129
CAPITAL SHARE ACTIVITY
SHARES SOLD 452,587 848,808
SHARES ISSUED FROM MERGERS (NOTE A) 2,016,597 -
REINVESTMENT OF DISTRIBUTIONS 102,255 239,358
SHARES REDEEMED (1,053,699) (1,920,093)
TOTAL CAPITAL SHARE ACTIVITY 1,517,740 (831,927)
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
CALIFORNIA PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31,
INCREASE (DECREASE) IN NET ASSETS 2000 1999
OPERATIONS:
NET INVESTMENT INCOME $624,073 $1,365,383
NET REALIZED GAIN (LOSS) 13 (20,638)
CHANGE IN UNREALIZED APPRECIATION OR (DEPRECIATION)
503,234 (1,909,190)
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 1,127,320 (564,445)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME (622,602) (1,367,094)
CAPITAL SHARE TRANSACTIONS:
SHARES SOLD 797,712 2,703,938
REINVESTMENT OF DISTRIBUTIONS 459,334 999,938
SHARES REDEEMED (3,363,809) (8,350,713)
TOTAL CAPITAL SHARE TRANSACTIONS (2,106,763) (4,646,837)
TOTAL INCREASE (DECREASE) IN NET ASSETS (1,602,045) (6,578,376)
NET ASSETS
BEGINNING OF PERIOD 30,385,024 36,963,400
END OF PERIOD (INCLUDING UNDISTRIBUTED NET INVESTMENT
INCOME OF $18,068 AND $16,597, RESPECTIVELY)
$28,782,979 $30,385,024
CAPITAL SHARE ACTIVITY
SHARES SOLD 78,187 258,976
REINVESTMENT OF DISTRIBUTIONS 45,173 95,967
SHARES REDEEMED (329,839) (798,572)
TOTAL CAPITAL SHARE ACTIVITY (206,479) (443,629)
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
NOTE A - SIGNIFICANT ACCOUNTING POLICIES
GENERAL: THE CALVERT MUNICIPAL FUND, INC. IS COMPRISED OF TWO MUNICIPAL
INTERMEDIATE PORTFOLIOS: NATIONAL AND CALIFORNIA. 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 JUNE 16, 2000, THE NET ASSTES OF THE CALVERT MUNICIPAL FUND'S MARYLAND AND
VIRGINIA INTERMEDIATE PORTFOLIOS MERGED INTO CALVERT MUNICIPAL FUND NATIONAL
INTERMEDIATE PORTFOLIO. THE ACQUISITION WAS ACCOMPLISHED BY A TAX-FREE EXCHANGE
OF 2,016,597 SHARES OF THE NATIONAL PORTFOLIO (VALUED AT $20,731,495) FOR
1,752,889 SHARES OF MARYLAND PORTFOLIO AND 2,447,875 SHARES OF VIRGINIA
PORTFOLIO OUTSTANDING AT JUNE 16, 2000. THE MARYLAND PORTFOLIO'S NET ASSETS AT
THAT DATE, INCLUDING $5,085 OF NET UNREALIZED DEPRECIATION AND $190,877 OF NET
REALIZED LOSS WERE COMBINED WITH THOSE OF NATIONAL PORTFOLIO. THE VIRGINIA
PORTFOLIO'S NET ASSETS AT THAT DATE, INCLUDING $129,104 OF NET UNREALIZED
DEPRECIATION AND $115,306 OF NET REALIZED LOSS WERE COMBINED WITH THOSE OF
NATIONAL PORTFOLIO. THE AGGREGATE NET ASSETS OF THE NATIONAL PORTFOLIO, MARYLAND
PORTFOLIO AND VIRGINIA PORTFOLIO IMMEDIATELY BEFORE THE ACQUISITION WERE
$51,962,950, $8,596,121 AND $12,135,374, 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 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.
<PAGE>
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
TAXABLE 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, $51,657 AND $19,132 WERE PAYABLE AT
PERIOD END FOR THE NATIONAL AND CALIFORNIA PORTFOLIOS, 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,
$6,021, AND $2,226 WERE PAYABLE AT PERIOD END FOR THE NATIONAL AND CALIFORNIA
PORTFOLIOS, 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
PERIOD ENDED JUNE 30, 2000, CDI RECEIVED SALES CHARGES IN EXCESS OF THE DEALER
REALLOWANCE OF $3,632 AND $1,748 FOR THE NATIONAL AND CALIFORNIA 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 $4,587 AND $2,007 FOR THE PERIOD ENDED JUNE 30, 2000 FOR THE NATIONAL AND
CALIFORNIA PORTFOLIOS, RESPECTIVELY. UNDER THE TERMS OF THE AGREEMENT, $1,647,
AND $292 WERE PAYABLE AT PERIOD END FOR THE NATIONAL AND CALIFORNIA PORTFOLIOS,
RESPECTIVELY. NATIONAL FINANCIAL DATA SERVICES, INC. IS THE TRANSFER AND
DIVIDEND DISBURSING AGENT.
<PAGE>
EACH DIRECTOR WHO IS NOT AFFILIATED WITH THE ADVISOR RECEIVES 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
PURCHASES: $21,254,337 -
SALES: 10,883,008 2,647,501
THE COST OF INVESTMENTS OWNED AT JUNE 30, 2000 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, 2000, AND THE NET CAPITAL LOSS CARRYFORWARDS AS OF
DECEMBER 31, 1999 WITH EXPIRATION DATES.
UNREALIZED UNREALIZED CAPITAL LOSS EXPIRATION
APPRECIATION DEPRECIATION CARRYFORWARDS DATES
NATIONAL $560,807 $811,385 $607,240 12/31/07
CALIFORNIA 463,170 98,278 136,098 12/31/02
CAPITAL LOSS CARRYFOWARDS MAY BE UTILIZED TO OFFSET CURRENT AND FUTURE CAPITAL
GAINS UNTIL EXPIRATION.
PORTFOLIOS MAY SELL OR PURCHASE SECURITIES FROM OTHER PORTFOLIOS MANAGED BY THE
ADVISOR, PRIMARILY AS A CASH MANAGEMENT PRACTICE. ALL TRANSACTIONS ARE EXECUTED
AT INDEPENDENTLY DERIVED PRICES PURSUANT TO RULE 17A-7 UNDER THE INVESTMENT
COMPANY ACT OF 1940.
NOTE D - LINE OF CREDIT
A FINANCING AGREEMENT IS IN PLACE WITH ALL CALVERT GROUP FUNDS (EXCEPT FOR THE
CALVERT SOCIAL INVESTMENT FUND MANAGED INDEX AND CVS AMERITAS INDEX 500
PORTFOLIOS) 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, 2000.
<PAGE>
NATIONAL PORTFOLIO
FINANCIAL HIGHLIGHTS
PERIODS ENDED
JUNE 30, DECEMBER 31, DECEMBER 31,
2000 1999 1998
NET ASSET VALUE, BEGINNING $10.12 $10.82 $10.79
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .23 .43 .45
NET REALIZED AND UNREALIZED GAIN (LOSS) .14 (.64) .13
TOTAL FROM INVESTMENT OPERATIONS .37 (.21) .58
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.23) (.43) (.46)
NET REALIZED GAINS - (.06) (.09)
TOTAL DISTRIBUTIONS (.23) (.49) (.55)
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE
.14 (.70) .03
NET ASSET VALUE, ENDING $10.26 $10.12 $10.82
TOTAL RETURN * 3.67% (2.01%) 5.46%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME 4.52%(A) 4.12% 4.17%
TOTAL EXPENSES .98%(A) .93% .97%
EXPENSES BEFORE OFFSETS .98%(A) .93% .97%
NET EXPENSES .92%(A) .90% .94%
PORTFOLIO TURNOVER 27% 38% 44%
NET ASSETS, ENDING (IN THOUSANDS) $74,475 $58,093 $71,065
YEARS ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31,
1997 1996 1995
NET ASSET VALUE, BEGINNING $10.56 $10.62 $9.81
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .50 .50 .51
NET REALIZED AND UNREALIZED GAIN (LOSS) .23 (.06) .80
TOTAL FROM INVESTMENT OPERATIONS .73 .44 1.31
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.50) (.50) (.50)
NET REALIZED GAINS - - -
TOTAL DISTRIBUTIONS (.50) (.50) (.50)
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE
.23 (.06) .81
NET ASSET VALUE, ENDING $10.79 $10.56 $10.62
TOTAL RETURN * 7.11% 4.32% 13.64%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME 4.71% 4.83% 4.97%
TOTAL EXPENSES .97% 1.04% .96%
EXPENSES BEFORE OFFSETS .97% 1.04% .96%
NET EXPENSES .94% 1.01% .94%
PORTFOLIO TURNOVER 29% 23% 57%
NET ASSETS, ENDING (IN THOUSANDS) $48,933 $45,612 $40,146
<PAGE>
CALIFORNIA PORTFOLIO
FINANCIAL HIGHLIGHTS
PERIODS ENDED
JUNE 30, DECEMBER 31, DECEMBER 31,
2000 1999 1998
NET ASSET VALUE, BEGINNING $10.13 $10.74 $10.63
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .22 .43 .45
NET REALIZED AND UNREALIZED GAIN (LOSS) .18 (.61) .12
TOTAL FROM INVESTMENT OPERATIONS .40 (.18) .57
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.22) (.43) (.46)
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE
.18 (.61) .11
NET ASSET VALUE, ENDING $10.31 $10.13 $10.74
TOTAL RETURN * 3.95% (1.73%) 5.51%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME 4.25%(A) 4.07% 4.23%
TOTAL EXPENSES .94%(A) .91% .90%
EXPENSES BEFORE OFFSETS .94%(A) .91% .90%
NET EXPENSES .90%(A) .89% .88%
PORTFOLIO TURNOVER 0% 11% 12%
NET ASSETS, ENDING (IN THOUSANDS) $28,783 $30,385 $36,963
YEARS ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31,
1997 1996 1995
NET ASSET VALUE, BEGINNING $10.44 $10.51 $9.81
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .49 .48 .47
NET REALIZED AND UNREALIZED GAIN (LOSS) .18 (.07) .69
TOTAL FROM INVESTMENT OPERATIONS .67 .41 1.16
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.48) (.48) (.46)
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE
.19 (.07) .70
NET ASSET VALUE, ENDING $10.63 $10.44 $10.51
TOTAL RETURN * 6.61% 4.04% 12.07%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME 4.64% 4.59% 4.59%
TOTAL EXPENSES .91% .97% .91%
EXPENSES BEFORE OFFSETS .91% .97% .91%
NET EXPENSES .88% .94% .89%
PORTFOLIO TURNOVER 48% 25% 47%
NET ASSETS, ENDING (IN THOUSANDS) $35,085 $35,693 $34,424
(A) ANNUALIZED
* TOTAL RETURN DOES NOT REFLECT DEDUCTION OF FRONT-END SALES CHARGE.
<PAGE>
A SPECIAL JOINT MEETING OF SHAREHOLDERS WAS HELD ON JUNE 12, 2000. THE MEETING
WAS CALLED FOR THE PURPOSE OF VOTING ON THE MERGER OF CALVERT MARYLAND MUNICIPAL
INTERMEDIATE FUND AND CALVERT VIRGINIA MUNICIPAL INTERMEDIATE FUND INTO CALVERT
NATIONAL MUNICIPAL INTERMEDIATE FUND. THE NUMBER OF VOTES RECEIVED FOR, AGAINST,
AND VOTES TO ABSTAIN IS SHOWN BELOW. THE MERGER PASSED.
CALVERT MARYLAND MUNICIPAL INTERMEDIATE FUND
FOR AGAINST ABSTAIN
1,302,730 303,289 52,170
CALVERT VIRGINIA MUNICIPAL INTERMEDIATE FUND
FOR AGAINST ABSTAIN
852,519 271,615 71,900
<PAGE>
THIS PAGE INTENTIONALLY LEFT BLANK
<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.
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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
TAXABLE BOND FUNDS
CSIF BOND PORTFOLIO
INCOME FUND
EQUITY FUNDS
CSIF MANAGED INDEX PORTFOLIO
CSIF EQUITY PORTFOLIO
CALVERT SOCIAL INDEX FUND
CAPITAL ACCUMULATION FUND
CWV INTERNATIONAL EQUITY FUND
NEW VISION SMALL CAP FUND
NEW AFRICA FUND
