<PAGE>
Calvert
World Values
Global Equity
Fund
Semi-Annual
Report
March 31, 1996
Investing with Vision(TM)
[LOGO] Calvert Group
A member of The Acacia Group(R)
<PAGE>
CALVERT WORLD VALUES
GLOBAL EQUITY FUND
Dear Shareholder:
This report covers performance results for the Calvert World Values Global
Equity Fund for the six-month period ending March 31, 1996.
During this period the Fund returned 5.12%. Over the same period the return on
the Morgan Stanley Capital International (MSCI) World Index in dollars was 9.27%
and the return on the Lipper Global Fund Index was 6.29%.
Economic and Market Review
The global trend toward moderate demand, low inflation, and falling interest
rates helped account for the steady performance from international markets in
the final quarter of calendar year 1995. During this same period, signs of a
slowing US economy were accompanied by a fall in demand in Europe, which allowed
interest rates in both regions to be trimmed.
By early 1996, national economies were moving into the late stages of the
economic cycle, corporate cash generation was high, and, increasingly, liquidity
had become an important element in equity market progress.
From a broader perspective, more than $120 billion flowed into the mutual fund
industry in 1995 and an additional $50 billion was added in the first two months
of 1996.
<TABLE>
<CAPTION>
Investment Performance
- ----------------------------------------------------------------
Periods Ended 3/31/96 6 Months 12 Months
- ----------------------------------------------------------------
<S> <C> <C>
Global Equity 5.12% 14.33%
MSCI World Index 9.27% 20.60%
</TABLE>
Investment performance is for Class A shares and
does not reflect the deduction of any front-end sales charge.
This flow of cash had a positive impact on several international markets
during the period covered in this report. The Far East was a primary target.
Hong Kong and Singapore, two areas in which the portfolio is overweighted, were
up 16.0% and 14.9%, respectively.* The Hong Kong market was under pressure from
China's posturing over the Taiwanese presidential election, and also from the
"sinification" of its institutions vis-a-`vis its impending reversion to China
in 1997. However, following the election, both Taiwan and China showed a more
conciliatory tone, thus easing regional tensions. Energetic growth continues in
Singapore, which justifies the portfolio's overweight exposure there.
Latin America also performed well during the period. Argentina led the way
with a rise of 18.2%. Mexico showed signs of recovery following the 1995
recession, with inflation lower than forecast and its trade account moving from
deficit to surplus. The Mexican market was up 6.2% for the six months.
*Unless otherwise stated, performance figures quoted refer to the MSCI country
index for the relevant market, in US dollars.
SEMI-ANNUAL REPORT (UNAUDITED) CALVERT WORLD VALUES GLOBAL EQUITY FUND - 1
<PAGE>
Europe's main feature during the period was the domestic slowdown, which was
most evident in Germany but spread to other "core" countries as well. In
December, German unemployment rose to 10% as exports weakened and
manufacturing contracted. With a high proportion of Germany's trade conducted
within the European region, the slowdown quickly spread to neighboring
countries. The Bundesbank cut interest rates, but the pressure on industry
forced companies throughout the region to reassess their viability. The main
threats were global competition and the lower costs of firms based outside
Europe. The result was an increase in corporate mergers, as exemplified by the
Sandoz/Ceiba Geigy merger in March. The markets responded well to these events
and have attempted to pick future merger candidates. This anticipated merger
activity led to strength during the period in Switzerland, up 17.4%; France, up
14.5%; and even Germany, up 7.2%.
The UK also benefited from this trend ... until the market was faced with the
publicity surrounding BSE, the "mad cow disease." The main challenge:
determining how many cattle needed to be destroyed and the enormous cost of any
such move in terms of compensation to the farmers involved. Whatever the
outcome, it is clear there will be an increased burden on government finances,
which may rule out any additional tax cuts before the general election next
year. Further, until specific measures are enacted, sterling is likely to come
under pressure, as will the financial markets. During the period the market
returned a modest 3.3%.
The Japanese market rose just 5.6%, with progress limited to the fourth
quarter of 1995. Traditionally, the first quarter of each year is a weak period
for Japanese markets and is characterized by corporate selling of stock prior to
the close of their fiscal year (the end of March). While 1996 was no exception,
Japanese markets were faced with an additional issue - the controversial
liquidation of housing loan companies. By late March, the issue appeared close
to resolution. In a related development, several city banks announced large
write-offs in their March 1996 results in an attempt to put bad loans from the
1980s behind them. With these technical issues largely resolved, the Japanese
market can now focus on the positive macroeconomic background: a steadily
recovering economy, rising corporate profits, and virtually no inflation.
Investment Strategy
During the period we continued to underweight the US market. We felt that the
economy would slow dramatically and earnings would fall short of analysts'
expectations. Another fear was that the economy would regain momentum, fueling
inflation fears, and leading to downward pressure on stock prices. Both
scenarios played on the US market in the first quarter of 1996 as conflicting
reports on the progress of the economy were released. But investors continued to
pour money into stocks, which drove the market to new highs. Our view continues
to be that the situation is becoming less stable and that the US market
is looking more vulnerable. Indeed, there was a further scare when the Labor
2 - CALVERT WORLD VALUES GLOBAL EQUITY FUND SEMI-ANNUAL REPORT (UNAUDITED)
<PAGE>
Department's numbers on job growth came in stronger than expected for February
and March 1996. This spurred fears that a strengthening economy might prevent
the Federal Reserve from cutting rates later this year. Accordingly, we are
continuing our underweight exposure to the US and will look for better value
elsewhere.
Our analysis showed a deterioration in the earnings outlook for the
Scandinavian countries after the strong uptrend of 1994 and 1995. Accordingly,
we reduced exposure to the region, selling Tele Danmark and reduced our
investment in Tomra, the can recycler, which had performed exceptionally over
the last year. We also reduced the Fund's European holdings. For example, we cut
France from 5% of the portfolio to 3.5% with the sale of the software company,
Cap Gemeni Sogeti, and, after a strong run, part of the investment in the
retailer, Pinault-Printemps.
Assets from these sales were switched into Japan, where exposure was raised
from 20% to 25%. We also increased our exposure to Hong Kong and Singapore.
Fund Social Investment Performance
Portfolio holdings with positive social records include Kingfisher and Canon.
Kingfisher is a retailer based in the UK. One of the company's subsidiaries,
B&Q, was one of the first UK home improvement retailers to source its timber
from sustainably managed forests and buy timber from community-based forest
projects. The Japan-based Canon is primarily known for its photocopiers and
camera equipment. The company collects and recycles cartridges from printers and
develops lead-free optical glass for its cameras, which reduces environmental
damage caused by lead oxide. Canon's philosophy includes a responsibility to the
community in which it operates.
Last year the Fund made a small investment in the Community Growth Fund (CGF),
South Africa's first socially responsible investment fund. Founded by several
South African trade unions, CGF has been instrumental in encouraging South
African companies towards better practices.
Shareholder activism is an important strategy in our work. We often contact
company management to discuss our concerns. For example, in light of Mexico's
continuing economic crisis, Calvert's social research analysts held discussions
with management at Telefonos de Mexico on the continued effects of the 1994 peso
crisis and its impact on employees. We understand there were no layoffs during
this period and workers received modest wage increases.
Outlook
Recent events reinforce our view that while the domestic US market has
provided investors with excellent returns through 1995, it is prudent to look to
the international markets to spread risk and look for higher returns in 1996. We
retain our preference for Far Eastern markets, where growth in economies
continues to drive earnings per share and index levels. We also believe that
cash flows from the US will continue to be an important factor, provided a
resurgence
SEMI-ANNUAL REPORT (UNAUDITED) CALVERT WORLD VALUES GLOBAL EQUITY FUND - 3
<PAGE>
of growth does not prompt a hike in US interest rates. The second focus of our
strategy is the Japanese market. We believe it has the scope to move steadily
ahead, now that some of the major hurdles in the financial world have been
crossed. Although we are less committed to Europe than in the past, we believe
the region will perform well during 1996 as a result of European governments'
continuing support for weak economies through looser fiscal and monetary policy.
We appreciate your investment in the Calvert World Values Global Equity Fund.
Sincerely,
/s/ Andrew Preston /s/ Clifton S. Sorrell
Andrew Preston Clifton S. Sorrell
Portfolio Manager Chairman
April 30, 1996
4 - CALVERT WORLD VALUES GLOBAL EQUITY FUND SEMI-ANNUAL REPORT (UNAUDITED)
<PAGE>
PORTFOLIO STATISTICS
TEN LARGEST STOCK HOLDINGS
as of March 31, 1996
% of Net Assets
---------------------------------------------------------------------------
Hysan Development 2.9%
Telecom Corp of New Zealand 2.3%
Sun Hung Kai Properties 2.3%
Keppel Corporation 2.2%
National Australia Bank 2.0%
WorldCom, Inc. 2.0%
Cardinal Health, Inc. 1.9%
Sanwa Bank 1.9%
Canon, Inc. 1.8%
Overseas Chinese Bank 1.8%
----
TOTAL 21.1%
====
AVERAGE ANNUAL TOTAL RETURNS
for periods ended March 31, 1996
CLASS A SHARES
One Year 8.89%
Since Inception (6/92) 6.95%
CLASS C SHARES
One Year 13.15%
Since Inception (3/94) 2.06%
PERFORMANCE COMPARISON
Comparison of change in value of $10,000 investment
[GRAPHIC APPEARS HERE]
6/92 3/96
------- -------
MSCI WORLD INDEX $10,000 $16,558
CALVERT WORLD VALUES GLOBAL EQUITY $10,000 $12,853
Total returns assume reinvestment of dividends and, for Class A shares, reflect
the deduction of the Fund's maximum sales charge of 4.75%. No sales charge
has been applied to the index used for comparison. The value of an investment
in Class A shares is plotted in the line graph. The value of an
investment in Class C shares would be different. Past
performance is no guarantee of future results.
SEMI-ANNUAL REPORT (UNAUDITED) CALVERT WORLD VALUES GLOBAL EQUITY FUND - 5
<PAGE>
STATEMENT OF NET ASSETS
MARCH 31, 1996
<TABLE>
<CAPTION>
EQUITY SECURITIES - 94.4% SHARES VALUE
===========================================================
<S> <C> <C>
AUSTRALIA - 2.0%
National Australia Bank............ 450,000 $4,008,752
----------
AUSTRIA - 0.6%
Mayr-Melnhof Karton AG............. 27,180 1,190,805
----------
ARGENTINA - 1.8%
Transportadora de Gas-(ADR)........ 300,000 3,600,000
----------
BELGIUM - 0.0%
GIB Holdings VVPR.................. 454 20,083
----------
COSTA RICA - 0.0%
Pro Fund International SA *+....... 98,196 98,196
----------
FRANCE - 3.3%
Assur Gen de France................ 61,745 1,716,365
Credit Foncier de France........... 43,875 548,830
Lyonnaise des Eaux SA.............. 5,200 486,300
Pinault-Printemps Redoute SA....... 5,900 1,628,346
Primagaz Cie....................... 8,316 838,799
Primagaz Cie (Warrants)*........... 756 12,309
SITA............................... 6,830 1,337,142
----------
6,568,091
----------
GERMANY - 2.0%
Douglas Holdings AG................ 44,850 1,534,190
Linde AG........................... 3,990 2,456,757
----------
3,990,947
----------
HONG KONG - 6.1%
Hong Kong Land Holdings............ 750,000 1,800,000
Hysan Development.................. 1,800,000 5,806,827
Sun Hung Kai Properties............ 500,000 4,476,985
----------
12,083,812
----------
ITALY - 4.3%
Assic Generali..................... 79,900 1,783,471
IMI................................ 354,400 2,423,981
Telecom Italia Mobile*............. 1,121,100 2,034,794
Telecom Italia Mobile (Di Risp)*... 2,050,000 2,255,946
----------
8,498,192
----------
</TABLE>
6 - CALVERT WORLD VALUES GLOBAL EQUITY FUND SEMI-ANNUAL REPORT (UNAUDITED)
<PAGE>
<TABLE>
<CAPTION>
EQUITY SECURITIES (CONT'D) SHARES VALUE
===================================================================
<S> <C> <C>
JAPAN - 25.0%
Canon, Inc............................... 192,000 $3,661,416
Futaba Corp.............................. 67,000 3,031,439
Itochu Corp.............................. 443,000 3,105,866
Keyence Corp............................. 26,000 3,075,149
Kuraray Co., Ltd......................... 292,000 3,139,051
Mori Seiki Co............................ 151,000 3,190,091
Omron Corp............................... 143,000 3,168,123
Sanwa Bank............................... 184,000 3,698,060
Sekisui House, Ltd....................... 232,000 2,906,100
Sumitomo Bank............................ 171,000 3,452,769
Sumitomo Trust & Banking................. 258,000 3,545,314
TDK Corp................................. 64,000 3,296,471
Teijin, Ltd.............................. 472,000 2,603,225
Terumo Corp.............................. 165,000 1,835,476
Tokyo Style Co........................... 206,000 3,408,460
Tsukishima Kikai......................... 124,000 2,526,946
----------
49,643,956
----------
MALAYSIA - 1.5%
Malayan Bank Berhad...................... 315,000 2,938,340
----------
MEXICO - 2.8%
Banpais SA-(ADR)*+....................... 100,000 0
Cifra SA de CV-(ADR)..................... 1,500,000 1,996,950
Grupo Durango SA -(ADR)*................. 200,000 1,375,000
Telefonos de Mexico SA-(ADR)............. 70,000 2,301,250
----------
5,673,200
----------
NETHERLANDS - 2.5%
Elsevier NV.............................. 141,100 2,160,783
VNU...................................... 169,050 2,813,919
----------
4,974,702
----------
NEW ZEALAND - 2.3%
Telecom Corp. of New Zealand............. 1,000,000 4,495,607
----------
NORWAY - 0.0%
Tomra Systems............................ 8,000 66,115
----------
SINGAPORE - 5.9%
City Developments........................ 150,000 1,331,960
Keppel Corporation....................... 480,000 4,364,566
Overseas Chinese Bank.................... 270,000 3,625,062
United Overseas Land (Warrants)*......... 2,305,000 2,390,637
----------
11,712,225
----------
SOUTH AFRICA - 0.2%
Community Growth Fund*+.................. 690,369 308,819
----------
</TABLE>
SEMI-ANNUAL REPORT (UNAUDITED) CALVERT WORLD VALUES GLOBAL EQUITY FUND - 7
<PAGE>
<TABLE>
<CAPTION>
EQUITY SECURITIES (CONT'D) SHARES VALUE
========================================================================
<S> <C> <C>
SPAIN - 4.5%
Dragados & Construcciones SA.................. 243,691 $ 3,308,378
General de Aguas de Barcelona SA.............. 82,785 2,661,340
Vallehermoso SA............................... 170,440 3,062,331
-----------
9,032,049
-----------
UNITED KINGDOM - 9.4%
Allied Irish Banks, Plc....................... 636,100 3,237,780
Argyll Group, Plc............................. 200,000 937,118
Beazer Homes, Plc............................. 212,000 598,596
British Telecom, Plc.......................... 85,000 479,682
Cable & Wireless, Plc......................... 85,000 691,468
Commercial Union, Plc......................... 65,000 564,484
Dalgety, Plc.................................. 235,000 1,474,130
EMAP, Plc..................................... 150,000 1,472,070
Glynwed International, Plc.................... 125,000 682,998
Hays, Plc..................................... 110,000 681,624
Johnson Matthey............................... 73,000 630,059
Kingfisher, Plc............................... 175,000 1,519,765
Lloyds TSB Group, Plc......................... 184,000 881,807
Low and Bonar, Plc............................ 125,000 1,084,592
Marks & Spencer, Plc.......................... 75,000 481,914
McBride, Plc.*................................ 330,000 695,055
National Westminster, Plc..................... 115,000 1,115,423
Powerscreen International, Plc................ 49,000 325,320
Severn Trent, Plc............................. 115,000 1,041,705
-----------
18,595,590
-----------
UNITED STATES - 20.2%
Calypte Biomedical (Warrants)*................ 50,000 250,000
Cardinal Health, Inc.......................... 60,000 3,855,000
Dallas Semiconductor Corp..................... 90,000 1,653,750
Enron Corp.................................... 60,000 2,212,500
Great Western Financial Corp. (Rights)*....... 125,000 3,015,625
Household International, Inc.................. 43,000 2,891,750
Illinois Tool Works, Inc...................... 34,000 2,197,250
La Quinta Inns, Inc........................... 75,000 2,203,125
MBNA Corp..................................... 105,000 3,110,625
McGraw Hill Cos., Inc......................... 34,000 2,949,500
Metrocall, Inc.*.............................. 52,000 1,079,000
Molex, Inc. (Class A)......................... 87,500 2,800,000
Partnerre, Ltd................................ 85,000 2,528,750
Quadrant Holdings Cambridge*.................. 200,000 228,938
Quorum Health Group, Inc.*.................... 110,000 2,585,000
Seitel, Inc.*................................. 95,000 2,576,875
WorldCom, Inc.*............................... 84,687 3,895,602
-----------
40,033,290
-----------
Total Equity Securities (Cost $178,334,902)... 187,532,771
-----------
</TABLE>
8 - CALVERT WORLD VALUES GLOBAL EQUITY FUND SEMI-ANNUAL REPORT (UNAUDITED)
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL
CORPORATE NOTES - 0.9% AMOUNT VALUE
=================================================================================================
<S> <C> <C>
BOLIVIA - 0.1%
Banco Solidario SA................................................... $286,275 $ 286,275
------------
UNITED STATES - 0.8%
Accion International................................................. 100,000 98,078
Cascadia Revolving Loan Fund......................................... 125,000 124,805
Catholic Relief Services............................................. 150,000 145,377
Community Equity Investments......................................... 200,000 190,672
Delaware Valley Community Reinvestment Fund.......................... 75,000 73,558
Ecumenical Development Corporation USA............................... 150,000 141,936
Enterprise Loan Fund................................................. 50,000 47,668
Foundation For International Community Assistance.................... 50,000 49,912
Foundation For International Development............................. 100,000 98,078
Freedom From Hunger.................................................. 50,000 49,125
Global Partners...................................................... 60,000 58,132
Program for Appropriate Technology & Health.......................... 150,000 149,781
Minnesota Non-Profit Assistance Fund................................. 100,000 99,844
New Mexico Community Loan Fund....................................... 25,000 24,576
Nicaraquan Community Loan Fund....................................... 25,000 24,563
Societe D'Investissement et de Developpement International........... 100,000 98,418
------------
1,474,523
------------
Total Corporate Notes (Cost $1,796,275)+............................ 1,760,798
------------
TIME DEPOSITS - 3.9%
=================================================================================================
International Bank of Japan, London, 5.25%, 4/2/96................... 7,681,231 7,681,231
------------
Total Time Deposits (Cost $7,681,231)............................... 7,681,231
------------
TOTAL INVESTMENTS (Cost $187,812,408) - 99.2%....................... 196,974,800
Other assets and liabilities, net - 0.8%............................ 1,566,511
------------
Net Assets - 100%................................................... $198,541,311
============
NET ASSETS CONSIST OF:
=================================================================================================
Par value and paid-in capital applicable to the following shares of
common stock, 250,000,000 shares of $0.01 par value authorized
for Class A and Class C combined:
Class A: 10,720,872 shares outstanding............................. $181,014,321
Class C: 370,615 shares outstanding................................ 6,528,620
Undistributed net investment income.................................. (303,310)
Accumulated net realized gain (loss) on investments
and foreign currencies.............................................. 2,162,844
Net unrealized appreciation (depreciation) on investments
and assets and liabilities in foreign currencies.................... 9,138,836
------------
Net assets......................................................... $198,541,311
============
NET ASSET VALUE PER SHARE
=================================================================================================
Class A (based on net assets of $192,019,812)........................ $ 17.91
============
Class C (based on net assets of $6,521,499).......................... $ 17.60
============
</TABLE>
+ Restricted securities representing 1.1% of net assets.
* Non-income producing.
See notes to financial statements.
SEMI-ANNUAL REPORT (UNAUDITED) CALVERT WORLD VALUES GLOBAL EQUITY FUND - 9
<PAGE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED MARCH 31, 1996
<TABLE>
<CAPTION>
NET INVESTMENT INCOME
=============================================================================
<S> <C>
Investment Income
Dividend income (net of foreign taxes withheld of $121,226)... $1,368,353
Interest income............................................... 157,026
----------
Total investment income...................................... 1,525,379
----------
Expenses
Investment advisory fee....................................... 977,135
Transfer agency fees and expenses............................. 290,266
Distribution plan expenses:
Class A...................................................... 236,613
Class C...................................................... 30,683
Directors' fees and expenses.................................. 21,624
Administrative fees........................................... 97,713
Custodian fees................................................ 124,447
Registration fees............................................. 8,233
Reports to shareholders....................................... 100,666
Professional fees............................................. 3,145
Miscellaneous................................................. 62,927
----------
Total expenses............................................... 1,953,452
Fees paid indirectly......................................... (124,447)
----------
Net expenses................................................ 1,829,005
----------
NET INVESTMENT INCOME...................................... (303,626)
----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
=============================================================================
Net realized gain (loss) on:
Securities.................................................... 3,268,369
Foreign currencies............................................ (13,549)
----------
3,254,820
Change in unrealized appreciation or depreciation on:
Securities.................................................... 6,717,871
Assets and liabilities in foreign currencies.................. (8,748)
----------
6,709,123
----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS.............................................. 9,963,943
----------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS................................... $9,660,317
==========
</TABLE>
See notes to financial statements.
10 - CALVERT WORLD VALUES GLOBAL EQUITY FUND SEMI-ANNUAL REPORT (UNAUDITED)
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE> SIX MONTHS
<CAPTION> ENDED YEAR ENDED
MARCH 31, SEPTEMBER 30,
INCREASE (DECREASE) IN NET ASSETS 1996 1995
===========================================================================================
<S> <C> <C>
Operations
Net investment income (loss)................................ $ (303,626) $ 1,203,211
Net realized gain (loss).................................... 3,254,820 4,007,986
Change in unrealized appreciation or
depreciation............................................... 6,709,123 1,101,087
------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS.................................. 9,660,317 6,312,284
------------
Distributions to shareholders from
Net investment income:
Class A Shares............................................. (1,473,932) (2,494)
Class C Shares............................................. (73) --
Net realized gain:
Class A Shares............................................. (4,677,990) (8,976,058)
Class C Shares............................................. (152,211) (251,801)
------------
Total distributions......................................... (6,304,206) (9,230,353)
------------
Capital share transactions:
Shares sold:
Class A Shares............................................. 15,017,329 46,195,309
Class C Shares............................................. 902,717 3,608,598
Reinvestment of distributions:
Class A Shares............................................. 5,620,032 8,979,242
Class C Shares............................................. 146,256 252,415
Shares redeemed:
Class A Shares............................................. (23,441,691) (36,309,658)
Class C Shares............................................. (706,488) (1,324,206)
------------
Total capital share transactions............................ (2,461,845) 21,401,700
------------
TOTAL INCREASE (DECREASE)
IN NET ASSETS................................................ 894,266 18,483,631
NET ASSETS
===========================================================================================
Beginning of period......................................... 197,647,045 179,163,414
------------
End of period (including undistributed net investment
income (loss) of $(303,310) and $1,474,321, respectively).. $198,541,311 $197,647,045
============
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT (UNAUDITED) CALVERT WORLD VALUES GLOBAL EQUITY FUND - 11
<PAGE>
NOTES TO FINANCIAL STATEMENTS
NOTE A--SIGNIFICANT ACCOUNTING POLICIES
GENERAL: The Calvert Global Equity Fund (the "Fund"), a series of Calvert World
Values Fund, Inc., is registered under the Investment Company Act of 1940 as a
diversified, open-end management investment company. The operations of each
series are accounted for separately. The Fund offers Class A and Class C shares
of capital stock. Class A shares are sold with a maximum front-end sales charge
of 4.75%. Class C shares, which have no transaction-based sales charge, have a
higher annual expense rate than Class A. Each class has different: (a) dividend
rates due to differences in Distribution Plan expenses and other class specific
expenses, (b) exchange privileges and (c) class specific voting rights.
SECURITY VALUATION: Securities listed or traded on a national securities
exchange are valued at the last reported sale price. Unlisted securities and
listed securities for which the last sale price is not available are valued at
the most recent bid price or based on a yield equivalent obtained from the
securities' market maker. Foreign security prices, furnished by quotation
services in the security's local currency, are translated using the current U.S.
dollar exchange rate. The Fund may invest in securities whose resale is subject
to restrictions. Restricted securities and other securities and assets for which
market quotations are not available or deemed inappropriate are valued in good
faith under the direction of the Board of Directors.
SECURITY TRANSACTIONS AND INVESTMENT INCOME: Security transactions are
accounted for on trade date. Realized gains and losses are recorded on an
identified cost basis. Dividend income is recorded on the ex-dividend date or,
in the case of dividends on certain foreign securities, as soon as the Fund is
informed of the ex-dividend date. Interest income, accretion of discount and
amortization of premium are recorded on an accrual basis.
FOREIGN CURRENCY TRANSACTIONS: The Fund's accounting records are maintained in
U. S. dollars. For valuation of assets and liabilities on each date of net asset
value determination, foreign denominations are translated into U.S. dollars
using the current exchange rate. Security transactions, income and expenses are
converted at the prevailing rate of exchange on the date of the event. The
effect of changes in foreign exchange rates on securities is included in the net
realized and unrealized gain or loss on securities.
DISTRIBUTIONS TO SHAREHOLDERS: Distributions to shareholders are recorded by
the Fund on ex-dividend date. Dividends from net investment income and
distributions from net realized capital gains, if any, are paid at least
annually. Distributions are determined in accordance with income tax regulations
which may differ from generally accepted accounting principles; accordingly,
periodic reclassifications are made within the Fund's capital accounts to
reflect income and gains available for distribution under income tax
regulations.
12 - CALVERT WORLD VALUES GLOBAL EQUITY FUND SEMI-ANNUAL REPORT (UNAUDITED)
<PAGE>
Expense Offset Arrangement: The Fund has an arrangement with its custodian bank
whereby the custodian's fees are paid indirectly by credits earned on the Fund's
cash on deposit with the bank. Such deposit arrangement is an alternative to
overnight investments.
Federal Income Taxes: No provision for federal income or excise tax is required
since the Fund intends to continue to qualify as a regulated investment company
under the Internal Revenue Code and to distribute substantially all of its
earnings.
Note B--Related Party Transactions
Calvert Asset Management Company, Inc. (the "Advisor") is wholly-owned by
Calvert Group, Ltd. ("Calvert"), which is indirectly wholly-owned by Acacia
Mutual Life Insurance Company. The Advisor provides investment advisory services
and pays the salaries and fees of officers and affiliated Directors of the Fund.
For its services, the Advisor receives a monthly fee based on the following
annual rates of average daily net assets: 1.0% on the first $250 million, .975%
on the next $250 million and .925% on the excess of $500 million.
Calvert Distributors, Inc., an affiliate of the Advisor, is the distributor and
principal underwriter for the Fund. Distribution Plans, adopted by each class of
shares, allow the Fund to pay the distributor for expenses and services
associated with distribution of shares. The expenses paid may not exceed .35%
and 1.0% annually of average daily net assets of each Class A and Class C,
respectively.
The Distributor received $78,005 as its portion of commissions charged on sales
of the Fund's shares.
Calvert Shareholder Services, Inc., an affiliate of the Advisor, acts as
transfer, dividend disbursing and shareholder servicing agent for the Fund.
Calvert Administrative Services Company, an affiliate of the Advisor, provides
administrative services to the Fund for an annual fee, payable monthly, of the
greater of $40,000 or .10% of the average daily net assets of the Fund.
Each Director who is not affiliated with the Advisor receives an annual fee of
$3,000 plus $1,000 for each Board and Committee meeting attended. Additional
fees of up to $10,000 annually may be paid to the Chairperson of special
committees of the Board. Director's fees are allocated to each of the funds
served.
SEMI-ANNUAL REPORT (UNAUDITED) CALVERT WORLD VALUES GLOBAL EQUITY FUND - 13
<PAGE>
Note C--Investment Activity
During the period, purchases and sales of investments, other than short-term
securities, were $68,097,698 and $80,445,840, respectively.
The cost of investments owned at March 31, 1996 was substantially the same for
federal income tax and financial reporting purposes. Net unrealized
apppreciation aggregated $9,162,392, of which $21,050,956 related to appreciated
securities and $11,888,564 related to depreciated securities.
Note D--Capital Shares
Transactions in shares of common stock were as follows:
<TABLE>
<CAPTION>
Six Months Year Ended
Ended September 30,
Share Activity March 31, 1996 1995
- --------------------------------------------------------------------------
<S> <C> <C>
Class A:
Shares sold.............................. 856,719 2,695,201
Reinvestment of distributions............ 326,572 545,587
Shares redeemed.......................... (1,338,144) (2,120,350)
---------- ----------
Net share activity..................... (154,853) 1,120,438
========== ==========
Class C:
Shares sold.............................. 52,382 213,899
Reinvestment of distributions............ 8,716 15,334
Shares redeemed.......................... (41,191) (81,268)
---------- ----------
Net share activity..................... 19,907 147,965
========== ==========
</TABLE>
14 - CALVERT WORLD VALUES GLOBAL EQUITY FUND SEMI-ANNUAL REPORT (UNAUDITED)
<PAGE>
Financial Highlights
<TABLE>
<CAPTION>
Periods Ended
----------------------------------
March 31, September 30,
Class A Shares 1996 1995 1994
- -----------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of period.......... $17.62 $17.99 $16.35
============ ========= ==========
Income from investment operations
- ---------------------------------
Net investment income........................ (.02) .11 --
Net realized and unrealized
gain (loss) on investments.................. .89 .38 2.14
------------ --------- ----------
Total from investment operations............ .87 .49 2.14
------------ --------- ----------
Distributions from
- ------------------
Net investment income........................ (.14) -- (.03)
Excess of net investment income.............. -- -- (.04)
Net realized gains........................... (.44) (.86) (.43)
------------ --------- ----------
Total distributions......................... (.58) (.86) (.50)
------------ --------- ----------
Total increase (decrease) in net asset value.. .29 (.37) 1.64
------------ --------- ----------
Net asset value, end of period................ $17.91 $17.62 $17.99
============ ========= ==========
Total return*................................. 5.12% 3.19% 13.44%
============ ========= ==========
Ratios to average net assets:
Net investment income (loss)................. (.27%)(a) .68% (.04%)
============ ========= ==========
Total expenses +............................. 1.96%(a) 1.93% --
============ ========= ==========
Net expenses................................. 1.84%(a) 1.79% 1.96%
============ ========= ==========
Expenses reimbursed.......................... -- -- .04%
============ ========= ==========
Portfolio turnover............................ 36% 73% 78%
============ ========= ==========
Net assets, end of period (in thousands)...... $192,020 $191,586 $175,543
============ ========= ==========
Number of shares outstanding at
end of period (in thousands)................. 10,721 10,876 9,755
============ ========= ==========
</TABLE>
<TABLE>
<CAPTION>
Periods Ended
---------------------
September 30,
Class A Shares 1993 1992/(1)/
- -------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value, beginning of period......................... $14.31 $15.00
========= ==========
Income from investment operations
- ---------------------------------
Net investment income....................................... .08 .02
Net realized and unrealized gain (loss) on investments...... 2.04 (.71)
--------- ----------
Total from investment operations........................... 2.12 (.69)
--------- ----------
Distributions from
- ------------------
Net investment income....................................... (.05) --
Net realized gains.......................................... (.03) --
--------- ----------
Total distributions........................................ (.08) --
--------- ----------
Total increase (decrease) in net asset value................. 2.04 (.69)
--------- ----------
Net asset value, end of period............................... $16.35 $14.31
========= ==========
Total return*................................................ 14.95% (4.60%)
========= ==========
Ratios to average net assets:
Net investment income (loss)................................ .80% 1.23%(a)
========= ==========
Total expenses +............................................ -- --
========= ==========
Net expenses................................................ 1.50% 1.01%(a)
========= ==========
Expenses reimbursed......................................... .20% .60%(a)
========= ==========
Portfolio turnover........................................... 35% --
========= ==========
Net assets, end of period (in thousands)..................... $54,280 $8,440
========= ==========
Number of shares outstanding at end of period (in thousands). 3,319 590
========= ==========
</TABLE>
SEMI-ANNUAL REPORT (UNAUDITED) CALVERT WORLD VALUES GLOBAL EQUITY FUND - 15
<PAGE>
<TABLE>
<CAPTION>
Periods Ended
---------------------------------------
March 31, September
Class C Shares 1996 1995 1994/(2)/
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of period.......... $17.28 $17.86 $18.24
============ ========= =============
Income from investment operations
- ---------------------------------
Net investment income........................ (.11) (.05) (.06)
Net realized and unrealized gain
(loss) on investments....................... .87 .32 (.32)
------------ --------- -------------
Total from investment operations............ .76 .27 (.38)
------------ --------- -------------
Distributions from
- ------------------
Net realized gains........................... (.44) (.85) --
------------ --------- -------------
Total distributions......................... (.44) (.85) --
------------ --------- -------------
Total increase (decrease) in net asset value.. .32 (.58) (.38)
------------ --------- -------------
Net asset value, end of period................ $17.60 $17.28 $17.86
============ ========= =============
Total return*................................. 4.45% 1.95% (1.27%)
============ ========= =============
Ratios to average net assets:
Net investment income (loss)................. (1.42%)(a) (.47%) (1.16%)(a)
============ ========= =============
Total expenses +............................. 3.12%(a) 3.12% --
============ ========= =============
Net expenses................................. 2.99%(a) 2.99% 3.32%(a)
============ ========= =============
Expenses reimbursed.......................... -- .13% .50%(a)
============ ========= =============
Portfolio turnover............................ 36% 73% 78%
============ ========= =============
Net assets, end of period (in thousands)...... $6,521 $6,061 $3,620
============ ========= =============
Number of shares outstanding at
end of period (in thousands)................. 371 351 203
============ ========= =============
</TABLE>
(a) Annualized
* Total return is not annualized for periods of less than one year and does
not reflect deduction of Class A front-end sales charge.
+ Effective September 30, 1995, this ratio reflects total expenses before
reduction for fees paid indirectly; such reductions are included in the
ratio of net expenses.
(1) From July 2, 1992, inception.
(2) From March 1, 1994, inception.
16 - CALVERT WORLD VALUES GLOBAL EQUITY FUND SEMI-ANNUAL REPORT (UNAUDITED)
<PAGE>
CALVERT
CAPITAL ACCUMULATION FUND
Dear Shareholder:
This report for the Calvert Capital Accumulation Fund covers the six-months
ending March 31, 1996, a period when the stock market continued to record new
all-time highs. But as the period progressed, the market's upward trend was
marked by increasingly volatile swings. The Standard & Poor's 500/(R)/ Index, a
broad-based measure of leading common stocks, gained 11.70%. The larger
capitalization stocks provided superior relative performance during the period.
Conversely, many small caps in the technology sector -- a winner for much of
1995--performed poorly.
FUND PERFORMANCE
Investors in the Calvert Capital Accumulation Fund realized a return of -1.99%
versus 7.67% for the Standard & Poor's 400 Mid-Cap Index and 7.41% for the
Russell 2000 for this six-month period. The Fund suffered due to its high
exposure to smaller capitalization technology stocks. The returns for the Fund's
three investment managers were: Apodaca-Johnston, -5.60%; Brown Capital
Management, 8.65%; and Fortaleza Asset Management, -3.53%.
INVESTMENT PERFORMANCE
<TABLE>
<CAPTION>
Periods Ended 3/31/96 6 Months 12 Months
- -----------------------------------------------
<S> <C> <C>
Capital Accumulation
Fund -1.99% 26.84%
S&P MidCap 400 7.67% 28.61%
Russell 2000 7.41% 29.09%
</TABLE>
Investment performance is for Class A shares and
does not reflect the deduction of any front-end sales charge.
FUND MANAGERS' APPROACH
APODACA-JOHNSTON CAPITAL MANAGEMENT, INC.
Apodaca-Johnston's investment approach continues to emphasize unique, niche
companies experiencing accelerating earnings growth, solid balance sheets (low
debt), and strong relative price strength. Typically, these companies have
market capitalizations (share price times number of shares outstanding) of less
than $600 million.
During the period, the Apodaca-Johnston portfolio was weighted among several
sectors, including networking, healthcare, and information systems. Among the
networking group, key holdings included Westell, Amati, Act Networks, and PCOM
- -- firms that provide telecommunications equipment for the regional Bells and
other phone companies.
SEMI-ANNUAL REPORT (UNAUDITED) CALVERT CAPITAL ACCUMULATION FUND - 1
<PAGE>
Mecon and Imnet Systems were among the favorites in overlapping subsets of the
information systems and healthcare areas. These firms specialize in the
development of communication systems among physician groups and hospitals around
the nation for the exchange of patients records and related diagnostic data. We
project explosive growth for these firms over the next two to three years.
About ten years ago we took note of institutional investors that funneled
massive amounts of new capital into biotech firms. Now we're reaping the fruits
of these ventures. The speedup in approvals by the Food and Drug Administration
has made many of these companies even more attractive. We particularly like are
Neurogen (for its new cancer medication targeting neurological abnormalities)
and QLT Phototherapeutics (for its new drugs for treating a variety of cancers).
Apodaca-Johnston's outlook for the market over the near term is for continued
volatility. Nevertheless, our approach remains focused on leading firms with
good fundamentals. By doing so, while we're not expecting a repeat of 1995's
results, we do anticipate reasonable gains for the Fund in 1996.
BROWN CAPITAL MANAGEMENT, INC.
Brown Capital Management buys growth companies at a reasonable price.
Typically, these are superior firms in terms of their management, earnings-per-
share growth prospects, and profitability.
In the last period, our heaviest weightings continued to be in financial
services and technology. In the financial sector, we have identified such
exceptional companies as AFLAC, Green Tree Financial, and T. Rowe Price. We
noted that some of our best and worst performers were in the technology area:
our three best -- Sterling Software, Cisco Systems, and ALZA; our three worst --
DSC Communications, Vishay Intertechnology, and Cheyenne Software.
Productivity enhancement remains important to our investment strategy. Such
companies as EMC Corporation and Microsoft fit this theme, as does Scherer
(R.P.), a technology-based provider of drug delivery systems. We also believe
that an aging population bodes well for the healthcare and long-term care
industries. In these areas, our picks include Cardinal Health, a distributor of
healthcare products, and Health Care & Retirement in the long-term care segment.
A growing number of Americans are preparing for their golden years by
investing in equity mutual funds. Corporate America has added significantly to
equity demand by competing with the public through a record level of share
repurchase programs, and by acquiring whole companies at premium prices. Despite
this upward pressure on stocks, we will continue to temper our picks with
sobriety based on our time-tested principles.
FORTALEZA ASSET MANAGEMENT, INC.
Fortaleza's investment approach focuses on small-capitalization growth
companies. During the last period, our sector weightings were concentrated in
healthcare, technology, and retail. Among the stocks that contributed most
2 - CALVERT CAPITAL ACCUMULATION FUND SEMI-ANNUAL REPORT (UNAUDITED)
<PAGE>
strongly to our performance were Verifone, Atlantic Coast Airlines, Corporate
Express, HCIA, Healthsource, Input/Output, American Home Patient, CRA Managed
Care, Callaway Golf, Cotelligent, and Marisa Christina.
On the negative side, most of our technology issues were under pressure,
particularly the semiconductor equipment manufacturers. We expect the turbulence
that has plagued the technology sector to continue at least through the second
quarter of 1996. PC demand appears sluggish relative to expectations, and we
have not yet seen a major corporate move to upgrade Pentium/Windows '95. Still,
there should continue to be selective opportunities in this sector, particularly
on the software side and in such services as systems integration. Medical
stocks, one of the leading groups in the past six months, should continue to do
well, which is why we have increased our weightings in this sector.
We think it likely that the erratic and challenging movements in the market of
the first quarter of 1996 will continue throughout the year. We believe that
valuations have become extended for the large-cap stocks. But valuations among
many small-cap firms, our specialty, look very attractive. In short, amid all
the turbulence, we believe that 1996 should provide positive real returns
overall.
We appreciate your investment in the Calvert Capital Accumulation Fund.
Sincerely,
/s/ Clifton S. Sorrell
Clifton S. Sorrell
Chairman
April 30, 1996
SEMI-ANNUAL REPORT (UNAUDITED) CALVERT CAPITAL ACCUMULATION FUND - 3
<PAGE>
PORTFOLIO STATISTICS
TEN LARGEST STOCK HOLDINGS
as of March 31, 1996
% of Net Assets
----------------------------------------------------------------------------
Autozone, Inc. 1.3%
Marisa Christina, Inc. 1.2%
Imnet Systems, Inc. 1.2%
Mecon, Inc. 1.2%
Green Tree Financial Corp. 1.2%
Atlantic Coast Airlines, Inc. 1.2%
Microcom, Inc. 1.1%
Cisco Systems, Inc. 1.1%
Physician Support Systems, Inc. 1.1%
Cardinal Health, Inc. 1.1%
-----
TOTAL 11.7%
=====
AVERAGE ANNUAL TOTAL RETURNS
for periods ended March 31, 1996
CLASS A SHARES
One Year 20.79%
Since Inception (10/31/94) 22.94%
CLASS C SHARES
One Year 25.42%
Since Inception (10/31/94) 26.83%
PERFORMANCE COMPARISON
Comparison of changes in value of $10,000 investment
[Graph Appears Here]
[Plot Points To Come]
Calvert Capital Calvert Capital
Accumulation Accumulation
Fund - A Shares Fund - C Shares S&P Midcap 400
10/94 $10,000 $10,000 $10,000
3/96 $13,379 $13,979 $14,245
Total returns assume reinvestment of dividends and, for Class A shares,
reflect the deduction of the Fund's maximum sales charge of 4.75%. No sales
charge has been applied to the index used for comparison. Past performance
is no guarantee of future results.
4 - CALVERT CAPITAL ACCUMULATION FUND SEMI-ANNUAL REPORT (UNAUDITED)
<PAGE>
STATEMENT OF INVESTMENTS
MARCH 31, 1996
<TABLE>
<CAPTION>
EQUITY SECURITIES - 93.0% SHARES VALUE
================================================================
<S> <C> <C>
AIRLINE - 1.6%
Atlantic Coast Airlines, Inc.*.............. 23,500 $ 364,250
Mesaba Holdings, Inc.*...................... 4,500 50,625
Reno Air, Inc.*............................. 7,500 93,750
----------
508,625
----------
BIOTECHNOLOGY - 1.0%........................
Amgen, Inc.*................................ 5,200 302,250
----------
BUSINESS EQUIPMENT AND SERVICES - 1.9%
Cintas Corp................................. 1,700 85,000
Corporate Express, Inc.*.................... 7,000 231,000
Profit Recovery Group International, Inc.*.. 6,000 93,000
U.S. Office Products Co.*................... 5,900 182,900
----------
591,900
----------
CHEMICALS - 0.6%............................
Minerals Technologies, Inc.................. 3,747 129,740
Sigma Aldrich Corp.......................... 1,200 68,700
----------
198,440
----------
COMMUNICATIONS - 5.6%
Cisco Systems, Inc.*........................ 7,500 347,812
Digital Systems International, Inc.......... 10,300 157,719
DSC Communications Corp.*................... 7,150 193,050
Hummingbird Communications Ltd.*............ 3,000 113,250
Intervoice, Inc.*........................... 4,600 131,675
P Com, Inc.*................................ 9,300 187,162
Remec, Inc.*................................ 8,300 103,750
STM Wireless, Inc., Class A*................ 2,600 27,625
Tellabs, Inc.*.............................. 3,500 191,774
Teltrend, Inc.*............................. 3,600 163,800
Voice Control Systems, Inc.*................ 12,000 166,500
----------
1,784,117
----------
COMPUTER - SOFTWARE - 12.4%
Act Networks, Inc.*......................... 10,300 227,888
Adept Technology, Inc.*..................... 9,000 130,500
Cheyenne Software, Inc.*.................... 18,200 286,650
Compuware Corp.*............................ 6,700 154,100
Comshare, Inc.*............................. 7,000 161,000
Cotelligent Group, Inc.*.................... 15,000 176,250
Cylink Corp.*............................... 7,800 138,450
Fractal Design Corp.*....................... 10,500 128,625
Health Systems Design Corp.*................ 8,000 111,000
Hyperion Software Corp...................... 8,000 174,000
IDX Systems Corp.*.......................... 3,500 101,500
Imnet Systems, Inc.*........................ 12,700 384,175
</TABLE>
SEMI-ANNUAL REPORT (UNAUDITED) CALVERT CAPITAL ACCUMULATION FUND - 5
<PAGE>
<TABLE>
<CAPTION>
EQUITY SECURITIES (CONT'D) SHARES VALUE
=========================================================
<S> <C> <C>
COMPUTER - SOFTWARE (CONT'D)
Legato Systems, Inc.*................ 3,700 $ 139,675
McAfee Associates, Inc.*............. 4,000 219,000
Microsoft Corp.*..................... 2,250 232,031
Network Gen Corp.*................... 2,600 104,000
Number Nine Visual Technology*....... 1,500 8,812
Open Text Corp.*..................... 9,000 127,125
Quarterdeck Corp.*................... 10,000 147,500
Rational Software Corp.*............. 2,900 114,550
Sterling Software, Inc.*............. 4,350 306,675
Viasoft, Inc.*....................... 11,300 317,812
----------
3,891,318
----------
COMPUTER - SYSTEMS - 7.0%
Amati Communications Corp.*.......... 14,000 113,750
Bay Networks, Inc.*.................. 5,900 181,425
Diamond Multimedia Systems, Inc.*.... 7,600 121,600
Gandalf Technologies, Inc.*.......... 10,600 156,350
Mentor Graphics Corp.*............... 7,000 99,750
Meridian Data, Inc.*................. 17,300 179,488
Microcom, Inc.*...................... 11,900 355,512
Oracle Corp.*........................ 6,125 288,641
Powercerv Corp.*..................... 10,700 159,330
Spacetex IMC Corp.*.................. 11,000 170,500
Sync Research, Inc.*................. 4,700 74,025
Verifone, Inc.*...................... 7,000 294,000
----------
2,194,371
----------
CONSUMER PRODUCTS - 1.0%
Newell Co............................ 12,100 323,675
----------
COSMETICS - 0.5%
Penederm, Inc.*...................... 11,200 145,600
----------
ELECTRICAL EQUIPMENT - 1.7%
AFC Cable Systems, Inc.*............. 5,000 66,250
Checkpoint Systems, Inc.*............ 10,000 248,750
Pacific Scientific Co................ 10,000 211,250
----------
526,250
----------
ELECTRONICS - DEFENSE - 0.3%
Jacobs Engineering Group, Inc.*...... 3,300 93,225
----------
ELECTRONICS - INSTRUMENTS - 1.4%
Checkfree Corp.*..................... 10,000 175,000
General Scanning, Inc.*.............. 11,500 148,062
Ultratech Stepper, Inc.*............. 6,000 105,750
----------
428,812
----------
ELECTRONICS - SEMICONDUCTORS - 6.6%
Ariel Corp.*......................... 10,900 81,750
EMC Corp.*........................... 11,800 258,125
</TABLE>
6 - CALVERT CAPITAL ACCUMULATION FUND SEMI-ANNUAL REPORT (UNAUDITED)
<PAGE>
<TABLE>
<CAPTION>
EQUITY SECURITIES (CONT'D) SHARES VALUE
=====================================================================
<S> <C> <C>
ELECTRONICS - SEMICONDUCTORS - (CONT'D)
Electrostar, Inc.*........................... 8,000 $ 84,000
Input/Output, Inc.*.......................... 4,000 124,000
MRV Communications, Inc.*.................... 3,900 185,250
Sheldahl Co.*................................ 8,000 154,000
Sierra Semiconductor Corp.*.................. 10,000 190,000
Solectron Corp.*............................. 5,500 242,000
Tencor Instruments*.......................... 6,000 108,000
Transwitch Corp.*............................ 12,300 149,138
Uniphase Corp.*.............................. 5,100 197,625
Vishay Intertechnology, Inc.*................ 10,800 291,600
----------
2,065,488
----------
ENVIRONMENTAL SERVICES - 0.6%
Allied Waste Industries, Inc.*............... 20,000 182,500
----------
FINANCIAL SERVICES - 3.4%
Chase Manhattan Corp (rights)................ 3,100 227,850
Glendale Federal Bank Federal Savings Bank*.. 13,300 241,062
Green Tree Financial Corp.................... 10,600 364,375
T. Rowe Price Associates, Inc................ 4,600 243,800
----------
1,077,087
----------
HEALTH CARE - 6.7%
American Homepatient, Inc.*.................. 5,000 196,250
American Oncology Research, Inc.*............ 3,000 127,500
CRA Managed Care, Inc.*...................... 6,000 214,500
First Commonwealth, Inc.*.................... 3,400 87,550
GRC International, Inc.*..................... 5,100 173,400
HCIA, Inc.*.................................. 3,000 141,000
Health Care & Retirement Corp.*.............. 7,700 290,675
Manor Care, Inc.............................. 6,800 266,900
NCS Healthcare, Inc., Class A*............... 6,000 147,000
PHP Healthcare Corp.*........................ 2,100 50,662
Renal Care Group, Inc.*...................... 4,000 111,000
United Healthcare Corp....................... 5,000 307,500
----------
2,113,937
----------
INSURANCE - 1.2%
AFLAC, Inc................................... 9,050 282,812
American Bankers Insurance Group, Inc........ 2,500 88,125
----------
370,937
----------
LEISURE - 1.5%
Callaway Golf Co............................. 6,000 160,500
Carnival Corp., Class A...................... 11,350 312,125
----------
472,625
----------
MACHINERY - 0.1%
Ionics, Inc.*................................ 300 12,525
----------
</TABLE>
SEMI-ANNUAL REPORT (UNAUDITED) CALVERT CAPITAL ACCUMULATION FUND - 7
<PAGE>
<TABLE>
<CAPTION>
EQUITY SECURITIES (CONT'D) SHARES VALUE
==========================================================
<S> <C> <C>
MEDICAL - 14.3%
Alkermes, Inc.*.................... 15,500 $ 141,438
ALZA Corp.*........................ 4,700 144,525
Cardinal Health, Inc............... 5,150 330,888
Creative Biomolecules, Inc.*....... 11,300 105,938
Cytyc Corp.*....................... 6,200 103,850
Diametrics Medical, Inc.*.......... 10,000 60,000
Hologic, Inc.*..................... 5,400 122,850
ICU Medical, Inc.*................. 10,300 149,511
Immucor Corp.*..................... 10,200 135,150
Inhale Therapeutic Systems*........ 10,200 155,550
Invacare Corp...................... 6,000 169,500
Iridex Corp.*...................... 8,500 87,125
Lunar Corp.*....................... 3,900 166,725
Martek Biosciences Corp.*.......... 5,100 183,600
Mecon, Inc.*....................... 19,100 377,225
Myriad Genetics, Inc.*............. 4,500 120,375
North American Vaccine, Inc.*...... 7,500 103,125
Northfield Laboratories, Inc.*..... 8,200 155,800
Orthologic Corp.*.................. 7,300 185,238
Pediatrix Medical Group*........... 5,500 195,250
QLT Phototherapeutics*............. 12,700 165,100
Research Med, Inc.*................ 9,000 207,000
Respironics, Inc.*................. 6,000 126,000
R.P. Scherer Corp.*................ 5,200 228,150
Sofamor/Danek Group, Inc.*......... 7,000 237,125
Steris Corp.*...................... 4,100 123,000
Zygo Corp.*........................ 5,400 210,600
----------
4,490,638
----------
OIL & GAS - 1.7%
Belden & Blake Corp.*.............. 8,000 143,000
Dawson Production Services, Inc.*.. 12,200 137,250
MCN Corp........................... 11,500 265,938
----------
546,188
----------
PHARMACEUTICAL - 2.9%
Agouron Pharmaceuticals, Inc.*..... 2,800 108,500
Columbia Labs, Inc.*............... 17,200 204,250
Immulogic Pharmaceutical Corp.*.... 9,500 125,691
Neurogen Corp.*.................... 4,400 151,800
Noven Pharmaceuticals, Inc.*....... 10,600 152,375
Sequus Pharmaceuticals, Inc.*...... 11,600 160,225
----------
902,841
----------
REAL ESTATE - 1.8%
General Growth Properties, Inc..... 11,450 269,075
Post Properties, Inc............... 8,700 282,750
----------
551,825
----------
</TABLE>
8 - CALVERT CAPITAL ACCUMULATION FUND SEMI-ANNUAL REPORT (UNAUDITED)
<PAGE>
<TABLE>
<CAPTION>
EQUITY SECURITIES (CONT'D) SHARES VALUE
=====================================================================
<S> <C> <C>
RESTAURANTS - 3.6%
Applebees International, Inc.................... 4,500 $ 112,500
Buffets, Inc.*.................................. 12,400 176,700
Cheesecake Factory, Inc.*....................... 11,000 297,000
CKE Restaurants, Inc............................ 10,000 167,500
Daka International, Inc.*....................... 9,000 227,250
Manhattan Bagel, Inc.*.......................... 6,500 151,125
-----------
1,132,075
-----------
RETAIL - 6.7%
Autozone, Inc.*................................. 12,000 406,500
Baby Superstore, Inc.*.......................... 2,800 127,400
Casey General Stores, Inc....................... 11,200 263,200
Dollar General Corp.*........................... 11,400 330,600
Federated Department Stores, Inc.*.............. 350 11,288
Gadzooks, Inc.*................................. 5,800 201,550
Movie Gallery, Inc.*............................ 9,000 227,250
Noodle Kidoodle, Inc.*.......................... 10,000 85,750
Party City Corp.*............................... 700 10,150
Prime Retail, Inc............................... 700 8,050
Revco D.S., Inc.*............................... 5,350 147,125
Vans, Inc.*..................................... 8,200 113,775
Whole Foods Market, Inc.*....................... 9,000 164,250
-----------
2,096,888
-----------
SPECIALIZED SERVICES - 3.9%
Ambassadors International, Inc.*................ 8,000 88,000
Devry, Inc.*.................................... 4,500 153,000
Equifax, Inc.................................... 14,200 285,775
Individual, Inc.*............................... 4,000 61,000
Physician Support Systems, Inc.*................ 19,700 337,362
U.S. Order, Inc.*............................... 8,000 164,000
Veterinary Centers America, Inc.*............... 5,500 148,500
-----------
1,237,637
-----------
TELECOMMUNICATIONS - 0.8%
Westell Technologies, Class A*.................. 6,700 247,900
-----------
TEXTILES - 2.2%
Marisa Christina, Inc.*......................... 19,100 384,388
Quiksilver, Inc.*............................... 4,900 155,575
St. John Knits, Inc............................. 2,400 161,700
-----------
701,663
-----------
Total Equity Securities (Cost $25,801,996)..... 29,191,337
-----------
TOTAL INVESTMENTS (Cost $25,801,996) - 93.0%.. 29,191,337
Other assets and liabilities, net - 7.0%...... 2,179,628
-----------
NET ASSETS - 100%............................. $31,370,965
===========
</TABLE>
* Non-income producing.
See notes to financial statements.
SEMI-ANNUAL REPORT (UNAUDITED) CALVERT CAPITAL ACCUMULATION FUND - 9
<PAGE>
Statement of Assets and Liabilities
March 31, 1996
<TABLE>
<CAPTION>
Assets Value
- --------------------------------------------------------------------------------------------------
<S> <C>
Investments in securities, at value.................................................. $29,191,337
Cash................................................................................. 1,711,006
Receivable for securities sold....................................................... 559,342
Receivable for shares sold........................................................... 346,352
Dividends receivable................................................................. 6,618
Other assets......................................................................... 16,686
-----------
Total assets....................................................................... 31,831,341
-----------
Liabilities
- --------------------------------------------------------------------------------------------------
Payable for securities purchased..................................................... 304,233
Payable for shares redeemed.......................................................... 96,383
Payable to Calvert Asset Management Co., Inc. ....................................... 32,347
Payable to Calvert Shareholder Services, Inc. ....................................... 9,494
Payable to Calvert Distributors, Inc. ............................................... 10,721
Accrued expenses and other liabilities............................................... 7,198
-----------
Total liabilities.................................................................. 460,376
-----------
Net assets....................................................................... $31,370,965
===========
Net Assets Consist of:
- --------------------------------------------------------------------------------------------------
Par value and paid-in capital applicable to the following shares of common stock,
125,000,000 shares of $0.01 par value authorized for Class A and Class C combined:
Class A: 1,380,231 shares outstanding............................................ $25,954,549
Class C: 151,924 shares outstanding.............................................. 3,031,241
Undistributed net investment income (loss)........................................... (208,310)
Accumulated net realized gain (loss) on investments.................................. (795,856)
Net unrealized appreciation (depreciation) on investments............................ 3,389,341
-----------
Net assets....................................................................... $31,370,965
===========
Net Asset Value Per Share
- --------------------------------------------------------------------------------------------------
Class A (based on net assets of $28,268,558)......................................... $20.48
===========
Class C (based on net assets of $3,102,407).......................................... $20.42
===========
</TABLE>
See notes to financial statements.
10 - CALVERT CAPITAL ACCUMULATION FUND SEMI-ANNUAL REPORT (UNAUDITED)
<PAGE>
Statement of Operations
Six Months Ended March 31, 1996
<TABLE>
<CAPTION>
Net Investment Income
- ---------------------------------------------------------------
<S> <C>
Investment Income
Interest income................................... $ 20,927
Dividend income................................... 32,366
---------
Total investment income......................... 53,293
---------
Expenses
Investment advisory fee........................... 95,424
Transfer agency fees and expenses................. 59,698
Distribution Plan expenses:
Class A......................................... 37,177
Class C......................................... 13,061
Directors' fees and expenses...................... 561
Administrative fees............................... 11,928
Custodian fees.................................... 25,300
Registration fees................................. 22,398
Reports to shareholders........................... 13,561
Professional fees................................. 2,247
Miscellaneous..................................... 5,548
---------
Total expenses.................................. 286,903
Fees paid indirectly............................ (25,300)
---------
Net expenses.................................. 261,603
---------
Net Investment Income (Loss)................ (208,310)
---------
Realized and Unrealized Gain (Loss)
on Investments
- ---------------------------------------------------------------
Net realized gain (loss)............................ (795,575)
Change in unrealized appreciation or depreciation... 986,448
---------
Net Realized and Unrealized Gain
(Loss) on Investments.......................... 190,873
---------
Increase (Decrease) in Net Assets
Resulting From Operations...................... $ (17,437)
=========
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT (UNAUDITED) CALVERT CAPITAL ACCUMULATION FUND - 11
<PAGE>
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Six Months
Ended Oct. 31, 1994
March 31, (Inception) to
Increase (Decrease) in Net Assets 1996 Sept. 30, 1995
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C>
Operations
Net investment income (loss)............................................. $ (208,310) $ (110,326)
Net realized gain (loss)................................................. (795,575) 678,368
Change in unrealized appreciation or depreciation........................ 986,448 2,402,893
----------- -----------
Increase (Decrease) in Net Assets
Resulting From Operations.............................................. (17,437) 2,970,935
----------- -----------
Distributions to shareholders from
Net investment income:
Class A Shares......................................................... -- (4,761)
Net realized gain:
Class A Shares......................................................... (495,795) --
Class C Shares......................................................... (67,767) --
----------- -----------
Total distributions...................................................... (563,562) (4,761)
----------- -----------
Capital share transactions:
Shares sold:
Class A Shares......................................................... 15,892,583 14,367,141
Class C Shares......................................................... 1,612,039 1,914,520
Reinvestment of distributions:
Class A Shares......................................................... 477,591 4,761
Class C Shares......................................................... 66,068 --
Shares redeemed:
Class A Shares......................................................... (3,740,361) (1,047,166)
Class C Shares......................................................... (458,596) (102,790)
----------- -----------
Total capital share transactions......................................... 13,849,324 15,136,466
----------- -----------
Total Increase (Decrease) in Net Assets.................................... 13,268,325 18,102,640
Net Assets
- --------------------------------------------------------------------------------------------------------
Beginning of period...................................................... 18,102,640 --
----------- -----------
End of period (including undistributed net investment income
(loss) of $(208,310) and $0, respectively)............................. $31,370,965 $18,102,640
=========== ===========
</TABLE>
See notes to financial statements.
12 - CALVERT CAPITAL ACCUMULATION FUND SEMI-ANNUAL REPORT (UNAUDITED)
<PAGE>
Notes to Financial Statements
Note A--Significant Accounting Policies
General: The Calvert Capital Accumulation Fund (the "Fund"), a series of
Calvert World Values Fund, Inc., is registered under the Investment Company Act
of 1940 as a non-diversified, open-end management investment company. The
operations of each series are accounted for separately. The Fund, which
commenced operations on October 31, 1994, offers Class A and Class C shares of
capital stock. Class A shares are sold with a maximum front-end sales charge of
4.75%. Class C shares, which have no transaction-based sales charge, have a
higher annual expense rate than Class A. Each class has different: (a) dividend
rates, due to differences in Distribution Plan expenses and other class specific
expenses, (b) exchange privileges and (c) class specific voting rights.
Security Valuation: Securities listed or traded on a national securities
exchange are valued at the last reported sale price. Unlisted securities and
listed securities for which the last sale price is unavailable are valued at the
most recent bid price or based on a yield equivalent obtained from the
securities' market maker. Other securities and assets for which market
quotations are not available or deemed inappropriate are valued in good faith
under the direction of the Board of Directors.
Repurchase Agreements: The Fund may enter into repurchase agreements with
recognized financial institutions or registered broker/dealers and, in all
instances, holds underlying securities with a value exceeding the total
repurchase price, including accrued interest.
Security Transactions and Investment Income: Security transactions are
accounted for on trade date. Realized gains and losses are recorded on an
identified cost basis. Dividend income is recorded on the ex-dividend date.
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 and
distributions from net realized capital gains, if any, are paid at least
annually. Distributions are determined in accordance with income tax regulations
which may differ from generally accepted accounting principles; accordingly,
periodic reclassifications are made within the Fund's capital accounts to
reflect income and gains available for distribution under income tax
regulations.
Expense Offset Arrangement: The Fund has an arrangement with its custodian bank
whereby the custodian's fees are paid indirectly by credits earned on the Fund's
cash on deposit with the bank. Such deposit arrangement is an alternative to
overnight investments.
Federal Income Taxes: No provision for federal income or excise tax is required
since the Fund intends to qualify as a regulated investment company under the
Internal Revenue Code and to distribute substantially all of its earnings.
SEMI-ANNUAL REPORT (UNAUDITED) CALVERT CAPITAL ACCUMULATION FUND - 13
<PAGE>
Note B--Related Party Transactions
Calvert Asset Management Company, Inc. (the "Advisor") is wholly-owned by
Calvert Group, Ltd. ("Calvert"), which is indirectly wholly-owned by Acacia
Mutual Life Insurance Company. The Advisor provides investment advisory services
and pays the salaries and fees of officers and affiliated Directors of the Fund.
For its services, the Advisor receives a monthly fee based on an annual rate of
.80% of the Fund's average daily net assets.
The Advisor reimburses the Fund for its operating expenses (excluding brokerage
fees, taxes, interest, Distribution Plan expenses and extraordinary items)
exceeding the following annual rates of average net assets: 2.5% on the first
$30 million, 2.0% on the next $70 million and 1.5% on the excess of $100
million.
Calvert Distributors, Inc., an affiliate of the Advisor, is the distributor and
principal underwriter for the Fund. Distribution Plans, adopted by each class of
shares, allow the Fund to pay the distributor for expenses and services
associated with distribution of shares. The expenses paid may not exceed .35%
and 1.0% annually of average daily net assets of each Class A and Class C,
respectively.
The Distributor received $64,513 as its portion of the commissions charged on
sales of the Fund's shares.
Calvert Shareholder Services, Inc., an affiliate of the Advisor, acts as
transfer, dividend disbursing and shareholder servicing agent for the Fund.
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 the Fund.
Each Director who is not affiliated with the Advisor receives an annual fee of
$3,000 plus $1,000 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 $25,627,138 and $12,718,897, respectively.
The cost of investments owned at March 31, 1996 was substantially the same for
federal income tax and financial reporting purposes. Net unrealized appreciation
aggregated $3,389,341, of which $4,614,749 related to appreciated securities and
$1,225,408 related to depreciated securities.
14 - CALVERT CAPITAL ACCUMULATION FUND SEMI-ANNUAL REPORT (UNAUDITED)
<PAGE>
Note D--Capital Shares
Transactions in shares of common stocks were as follows:
<TABLE>
<CAPTION>
Six Months Oct. 31, 1994
Ended (Inception) to
Share Activity March 31, 1996 Sept. 30, 1995
- -------------------------------------------------------------------
<S> <C> <C>
Class A Shares:
Shares sold..................... 791,068 808,632
Reinvestment of distributions... 23,446 304
Shares redeemed................. (184,343) (58,876)
-------- -------
Net share activity............ 630,171 750,060
======== =======
Class C Shares:
Shares sold..................... 80,241 97,638
Reinvestment of distributions... 3,240 --
Shares redeemed................. (23,979) (5,216)
-------- -------
Net share activity............ 59,502 92,422
======== =======
</TABLE>
SEMI-ANNUAL REPORT (UNAUDITED) CALVERT CAPITAL ACCUMULATION FUND - 15
<PAGE>
Financial Highlights
<TABLE>
<CAPTION>
Periods Ended
-------------------------
March 31, September 30,
Class A Shares 1996 1995**
- ----------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value, beginning of period.......................... $ 21.48 $ 15.00
======= =======
Income from investment operations
- ---------------------------------
Net investment income (loss)................................ (.12) (.11)
Net realized and unrealized gain on investments............. (.31) 6.61
------- -------
Total from investment operations.......................... (.43) 6.50
------- -------
Distributions from
- ------------------
Net investment income....................................... -- (.02)
Net realized gain........................................... (.57) --
------- -------
Total distributions....................................... (.57) (.02)
------- -------
Total increase (decrease) in net asset value.................. (1.00) 6.48
------- -------
Net asset value, end of period................................ $ 20.48 $ 21.48
======= =======
Total return*................................................. (1.99%) 43.40%
======= =======
Ratios to average net assets:
Net investment income (loss)................................ (1.61%)(a) (1.55%)(a)
======= =======
Total expenses+............................................. 2.27%(a) 2.35%(a)
======= =======
Net expenses................................................ 2.06%(a) 2.06%(a)
======= =======
Expenses reimbursed......................................... -- .05%(a)
======= =======
Portfolio turnover............................................ 61% 95%
======= =======
Net assets, end of period (in thousands)...................... $28,269 $16,111
======= =======
Number of shares outstanding at end of period (in thousands).. 1,380 750
======= =======
</TABLE>
<TABLE>
<CAPTION>
Periods Ended
-------------------------
March 31, September 30,
Class C Shares 1996 1995**
- ----------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value, beginning of period.......................... $ 21.55 $ 15.00
======= =======
Income from investment operations
- ---------------------------------
Net investment income (loss)................................ (.25) (.15)
Net realized and unrealized gain on investments............. (.31) 6.70
------- -------
Total from investment operations.......................... (.56) 6.55
------- -------
Distributions from
- ------------------
Net investment income....................................... -- --
Net realized gain........................................... (.57) --
------- -------
Total distributions....................................... (.57) --
------- -------
Total increase (decrease) in net asset value.................. (1.13) 6.55
------- -------
Net asset value, end of period................................ $ 20.42 $ 21.55
======= =======
Total return*................................................. (2.60%) 43.67%
======= =======
Ratios to average net assets:
Net investment income (loss)................................ (2.86%)(a) (3.13%)(a)
======= =======
Total expenses+............................................. 3.51%(a) 3.79%(a)
======= =======
Net expenses................................................ 3.30%(a) 3.50%(a)
======= =======
Expenses reimbursed......................................... -- 2.79%(a)
======= =======
Portfolio turnover............................................ 61% 95%
======= =======
Net assets, end of period (in thousands)...................... $ 3,102 $ 1,992
======= =======
Number of shares outstanding at end of period (in thousands).. 152 92
======= =======
</TABLE>
(a) Annualized
+ This ratio reflects total expenses before reduction for fees paid indirectly;
such reductions are included in the ratio of net expenses.
* Total return is not annualized and does not reflect deduction of Class A
front-end sales charge.
** From October 31, 1994, inception.
16 - CALVERT CAPITAL ACCUMULATION FUND SEMI-ANNUAL REPORT (UNAUDITED)
<PAGE>
==============================================================================
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 1000N
Bethesda, Maryland 20814
Registered, Certified
or Overnight Mail:
-------------------
Calvert Group
c/o NFDS, 6th Floor
1004 Baltimore
Kansas City, MO 64105-1807
Web Site
-------------------
Address: http://www.calvertgroup.com
Principal
Underwriter:
-------------------
Calvert Distributors, Inc.
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
==============================================================================
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.
