A SPECIAL NOTICE TO ALL
CALVERT GROUP SHAREHOLDERS
We're pleased to announce that on April 21, 1997, Barbara Krumsiek joined
Calvert Group as president and chief executive officer. Ms. Krumsiek comes to
Calvert Group from Alliance Capital Management, where she served as senior vice
president and managing director of their mutual funds division. She has 20 years
experience in mutual fund management and marketing.
Ms. Krumsiek replaces former Calvert Group president, Clifton S. Sorrell,
who stepped down earlier this year after nearly 10 years in the top post.
We look forward to Ms. Krumsiek leading the company into the next century
and bringing Calvert Group mutual funds to a growing number of new investors. We
welcome her to the Calvert Group family.
CALVERT WORLD VALUES
INTERNATIONAL EQUITY FUND
Dear Shareholder:
For the six months ended March 31, 1997, the Calvert World Values
International Equity Fund generated a total return of 5.53%, well ahead of the
essentially flat return for the Morgan Stanley Capital International Europe,
Australia and Far East Index. The poor performance of the Index was primarily
attributable to its larger position in Japanese stocks and that market's
continued weakness.
As we explained in our last report, the Fund's investment strategy was
modified in May of 1996 in order to give shareholders a more purely
internationally focused, responsibly managed investment vehicle. Now, a fewer
percentage of assets (typically 5% or less) will be concentrated in US
investments. This change necessitated a rebalancing of portfolio securities,
reducing or eliminating positions in US securities and redeploying the proceeds
in investments abroad. This process was completed for the most part during the
period from March through September.
Economic and Market Review
Throughout the period, most economies saw low growth and low inflation.
Even in the US where growth was more robust, it was not sufficient to force
higher interest rates until March, when the Federal Reserve took steps to raise
rates.
In Europe, governments continued their efforts to trim spending and achieve
the budgetary goals laid down to qualify for representation in the European
Monetary Union. This led universally to lower growth and higher unemployment. To
counter the trend, monetary policy was eased resulting in weaker currencies but
improved exports. The European equity markets responded favorably to this and to
moves by companies to restructure their operations and provide more information
about corporate strategy. The third factor which was positive for equity markets
was the potential for earnings surprises on the upside, given the extremely
modest level of forecasts. The rise of interest rates in the US had an
inevitably negative impact on Europe, but markets still ended the six-month
period up 15% overall.
INVESTMENT PERFORMANCE
Periods Ended 3/31/97 6 months 12 months
International Equity 5.59% 9.78%
MSCI EAFE Index -.76% -.13%
Investment performance is for Class A shares and does not reflect the deduction
of any front-end sales charge.
Markets in the Far East had mixed fortunes. Japan remained under a cloud
with a moderate pick up in economic growth confined largely to the export
sector. Spending by the government and consumers was insufficient to get the
economy moving. The equity market continued to struggle under the structural
problems of the financial and real estate sectors and generally weak earnings
(except in the electronics sector) and declined by 21% for the six months.
Elsewhere in the region, returns were lackluster. Hong Kong saw something
of a roller coaster ride as confidence in the handover of control to the Chinese
in July strengthened only to see investors become cautious over higher rates in
the US. Strong in the first two months, the market eased back to end the period
up only 2%. Australia and Malaysia saw reasonable returns, but the Singapore
market ended down almost 5% due to persistent weakness in the export sector. The
New Zealand market was almost unchanged.
The emerging economies continued their return to growth and their stock
markets reaped the benefits. A convincing revival in Latin America generated
strong profits and share price appreciation in markets in both Mexico and
Argentina.
Investment Strategy
Investment Strategy
Our larger positions in France, Germany and Switzerland were positive for
performance, as we reaped the benefits of the strong markets through the period.
In the UK, we reduced holdings but caught most of the rise before concerns about
the May election began to dampen sentiment. Adding to Japan did not have a
favorable impact on performance for this period, but this market now stands out
as the major global laggard and prospects for a recovery of stocks on a
selective basis have improved. Against a background of essentially flat markets,
good stock selection in Australia, Malaysia and New Zealand boosted returns. Our
reduction to Latin America preceded the rate hike in the US, which, in general,
had and has continued to have a negative impact on markets there. Still, several
investments in Latin America, particularly in Argentina, made a valuable
contribution to the bottom line.
Highlights of Social Investing
One of the Fund's best-performing investments during this period,
Volkswagen, can also serve to illustrate the practices evaluated by Calvert
Group's social research team. Volkswagen has made some important strides towards
manufacturing environmentally-friendly cars and disclosing the environmental
practices of its operations around the world. In its Environmental Report,
Volkswagen discloses its use of energy and the results of recycling and other
waste-management activities. Volkswagen is also active in developing
electrically-powered vehicles, as well as those running on fuels derived from
corn, soybeans and other renewable resources. The company is involved in
recycling its cars. In the US, Volkswagen cars met or exceeded US Corporate
Average Fuel Economy standards. These federal standards are designed to reduce
energy consumption and pollution by maintaining an "average" fuel economy
standard for an entire fleet. While Volkswagen has made progress on the
environmental front, Calvert Group's social research team is concerned with and
monitoring the company's labor relations and workplace practices, particularly
in Latin America.
Outlook
The increase in interest rates in the US in March precipitated a correction
in most of the major global markets. This was a healthy adjustment and clearly
necessary if the recent appreciation of share prices was not to lead ultimately
to collapse. Looking forward and excluding the US and the UK, the low growth,
low inflation environment should continue through 1997. This should help markets
to avoid a major pullback.
In the coming period, we will continue to overweight Europe, focusing on
Germany, Switzerland and France where there is still scope for restructuring to
enhance profits. With the approach of the general election, uncertainty will
rise in the UK, and we have taken profits in anticipation. We will remain
underweighted in Japan until the situation improves. Other South East Asian
markets offer good value and growth prospects and have been neglected in recent
months. The Fund will remain overweighted in the region. Finally, given the
benign outlook for interest rates, we expect the emerging markets to continue
their recovery. The Fund will maintain its exposure to these areas.
We appreciate your continued confidence.
Sincerely,
Andrew Preston Barbara J. Krumsiek
Portfolio Manager President
April 25, 1997
Portfolio Statistics
Ten Largest Stock Holdings
as of March 31, 1997
% of Net Assets
National Australia Bank 2.8%
Volkswagen 2.3%
STET 2.3%
Malayan Banking 2.2%
Winterthur 2.2%
Fortis 2.2%
Zurich Versicherungs 2.2%
City Developments 2.1%
Wing Tai Holdings 2.1%
Allied Irish Banks 2.1%
Total 22.5%
Average Annual Total Returns
for periods ended March 31, 1997
Class A Shares
One Year 4.58%
Since Inception (6/92) 41.02%
Class C Shares
One Year 8.57%
Since Inception (3/94) 13.20%
Performance Comparison
Comparison of change in value of $10,000 investment.
$20,000_____________________________
$15,000_____________________________ $15,002
$14,102
$10,000_____________________________
$ 5,000______________________________________
7/2/92 3/93 3/94 3/95 3/96 3/97
_________Calvert Intermediate Equity
--------- MSCI EAPE Index
Total returns assume reinvestment dividends and, for Class A shares, reflect the
deduction of the Fund's maximum sales charge of 4.75%. No 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.
STATEMENT OF NET ASSETS
MARCH 31, 1997
Equity Securities - 95.2% Shares Value
Australia - 6.0%
Brambles Industries 250,000 $4,109,831
Commonwealth Bank of Australia 250,000 2,498,824
National Australia Bank 450,000 5,697,319
12,305,974
Argentina - 2.2%
Banco Frances del Rio la Plat (ADR) 97,750 2,932,500
Transportadora de Gas del Sur (ADR) 125,000 1,609,375
4,541,875
Belgium - 2.2%
Fortis 25,000 4,469,477
4,469,477
Costa Rica - 0.1%
Pro Fund International * 1,518 1,518
Pro Fund International (Preferred) * 150,240 150,240
151,758
France - 7.2%
Cie Bancaire 17,000 2,255,766
Havas 27,270 2,030,254
Lyonnaise des Eaux 5,312 544,020
Pinault-Printemps 7,400 3,189,598
Primagaz Cie 8,316 862,038
Primagaz Cie (Warrants) * 756 15,216
SITA 10,830 2,166,193
SGS Thomson Microelectronics * 54,000 3,799,092
14,862,177
Germany - 8.2%
Continental 110,000 2,453,237
Deutsche Telekom * 140,000 3,214,628
Douglas Holdings 69,750 2,588,444
Linde 5,690 4,008,243
Volkswagen 8,570 4,737,134
17,001,686
Hong Kong - 6.1%
Cheung Kong Holdings 400,000 3,523,172
Hong Kong Land Holdings 1,000,000 2,320,000
Hysan Development 1,000,000 2,994,051
Hysan Development (Warrants) * 90,000 46,459
Sun Hung Kai Properties 350,000 3,703,847
12,587,529
Equity Securities (Cont'd) Shares Value
Ireland - 2.4%
Allied Irish Banks 646,791 $4,416,227
Smurfit (Jefferson) 219,000 569,299
4,985,526
Italy - 5.5%
Parmalat Finanziaria 2,520,000 3,499,055
STET 1,075,900 4,704,340
Telecom Italia Mobile 1,121,100 3,227,638
11,431,033
Japan - 16.7%
Canon Sales Co. 129,800 2,571,440
Eisai 155,000 2,657,071
Fuji Machine Manufacturing 109,000 2,829,223
Itochu 483,000 2,366,766
Keyence 26,400 3,009,946
Murata Manufacturing 94,000 3,374,788
Nippon Sanso 490,000 1,604,674
Nitto Denko 172,000 2,211,369
Sanwa Bank 208,000 2,236,921
Shiseido 228,000 2,949,786
Sumitomo Bank 144,000 1,711,652
Sumitomo Electric Industries 207,000 2,812,000
Takasago Thermal Engineering 179,000 2,243,470
Tokyo Style 164,000 1,816,770
34,395,876
Malaysia - 4.8%
AMMB Holdings 500,000 4,156,075
AMMB Holdings (Rights to ICULS) 391,000 37,864
AMMB Holdings (Rights to Bonds) 500,000 64,560
Malayan Banking 405,000 4,616,572
Selangor Properties 900,000 1,027,721
9,902,792
Mexico - 2.4%
Banpais (ADR) * 100,000 0
Cifra (ADR) 1,646,000 2,308,796
Grupo Industrial Durango (ADR) * 177,000 1,747,875
Telefonos de Mexico (ADR) 25,000 962,500
5,019,171
Netherlands - 4.3%
ING Groep 71,250 2,807,451
Vendex International 61,260 2,900,500
VNU 152,050 3,129,368
8,837,319
Equity Securities (Cont'd) Shares Value
New Zealand - 2.5%
Independent Newspapers 600,000 $2,759,291
Wilson & Horton 300,000 2,396,665
5,155,956
Singapore - 5.5%
City Developments 500,000 4,430,599
Keppel Land 650,000 2,006,923
Kim Eng Holdings 500,000 443,060
Raffles Medical Group * 100,000 26,307
Wing Tai Holdings 1,500,000 4,423,676
11,330,565
South Africa - 0.1%
Community Growth Fund 721,967 310,716
310,716
Spain - 2.3%
Prosegur Compania Securidad 350,000 3,505,574
Telefonica de Espana 50,800 1,227,974
4,733,548
Switzerland - 4.4%
Winterthur 6,600 4,586,518
Zurich Versicherungs 14,190 4,467,040
9,053,558
Thailand - 0.1%
Bangkok Bank 15,000 145,637
145,637
United Kingdom - 11.9%
Anglian Group 158,000 634,288
Anglian Water 116,400 1,223,751
Azlan Group 83,000 695,081
Bellway 108,300 591,570
Cadbury Schweppes 185,700 1,649,852
Carlton Communications 186,100 1,598,292
Commercial Union 111,700 1,234,066
Firstbus 196,900 722,420
Johnson Matthey 139,400 1,253,407
Kingfisher 128,300 1,478,680
Lloyds TSB Group 253,200 2,080,839
Low and Bonar 125,000 865,828
Mayflower Corp. 300,000 745,311
Millennium and Copthne 93,000 631,935
Misys 15,000 308,490
National Westminster Bank 143,800 1,640,758
Powerscreen International 61,000 614,215
Safeway 194,800 1,142,583
SIG 150,400 788,128
Equity Securities (Cont'd) Shares Value
United Kingdom (Cont'd)
Smith & Nephew 534,500 $1,578,525
Somerfield 243,200 708,233
Vitec Group 52,800 542,942
Wolseley 212,400 1,717,581
24,446,775
United States - 0.3%
Calypte Biomedical Series E, Convertible Preferred * 50,000 309,375
Quadrant Healthcare * 200,000 312,603
621,978
Total Equity Securities (Cost $176,693,507) 196,290,926
Principal
Corporate Notes - 1.2% Amount
Bolivia - 0.1%
Banco Solidario SA $301,617 301,617
301,617
United States - 1.1%
Accion International 100,000 95,210
Cascadia Revolving Loan Fund 125,000 120,755
Catholic Relief Services 150,000 149,970
Community Equity Investments 200,000 196,132
Delaware Valley Community Reinvestment Fund 75,000 71,408
Ecumenical Development Corporation USA 150,000 146,709
Enterprise Loan Fund 50,000 49,033
Federation of Appalachian Housing Enterprises Corp. 200,000 197,606
Foundation For International Community Assistance 50,000 48,185
Foundation For International Development 100,000 94,463
Freedom From Hunger 100,000 95,210
Mayer Laboratories, Inc. 150,000 150,000
Mcauley Institute 85,000 83,371
Minnesota Non-Profit Assistance Fund 100,000 96,370
New Mexico Community Loan Fund 25,000 23,803
New Mexico Community Loan Fund 75,000 71,408
Program for Appropriate Technology and Health 150,000 142,903
Self Help Credit Union 100,000 99,581
Societe D'Investissement
et de Developpement International 100,000 95,210
South Shore Bank 200,000 199,108
2,226,435
Total Corporate Notes (Cost $2,586,617)~ 2,528,052
Principal
Time Deposits - 2.2% Amount Value
Capital Markets, London, 6.00%, 4/1/97 $4,546,317 $4,546,317
Total Time Deposits (Cost $4,546,317) 4,546,317
TOTAL INVESTMENTS (Cost $183,826,441) - 98.6% 203,365,295
Other assets and liabilities, net 1.4% 2,836,930
Net Assets - 100% $206,202,225
Net Assets Consist of:
Paid-in capital applicable to the following shares of common stock with
250,000,000 shares of $0.01 par value share authorized for Class
A and C combined:
Class A : 10,370,811 shares outstanding $174,539,542
Class C : 392,909 shares outstanding 6,942,654
Undistributed net investment income 63,614
Accumulated net realized gain (loss) on investments
and foreign currencies 5,102,331
Net unrealized appreciation (depreciation) on investments
and assets and liabilities in foreign currencies 19,554,084
Net assets $206,202,225
Net Asset Value per Share
Class A (based on net assets of $198,863,868) $19.18
Class C (based on net assets of $7,338,357) $18.68
~Restricted securities representing 1.4% of net assets.
*Non-income producing.
See notes to financial statements.
STATEMENT OF OPERATIONS
SIX MONTHS ENDED MARCH 31, 1997
Net Investment Income
Investment Income
Dividend income (net of foreign taxes of $160,771) $1,641,077
Interest income 283,184
Total investment income 1,924,261
Expenses
Investment advisory fee 1,019,331
Transfer agency fees and expenses 221,560
Distribution Plan expenses:
Class A 246,050
Class C 35,132
Directors' fees and expenses 29,736
Administrative fees 101,933
Custodian fees 135,618
Registration fees 25,718
Reports to shareholders 106,093
Professional fees 14,405
Miscellaneous 59,496
Total expenses 1,995,072
Fees paid indirectly (135,618)
Net expenses 1,859,454
Net Investment Income 64,807
Realized and Unrealized Gain (Loss)
on Investments
Net realized gain (loss) on:
Securities 5,732,932
Foreign currencies (563,985)
5,168,947
Change in unrealized appreciation or depreciation on:
Securities 5,794,076
Assets and liabilities in foreign currencies 4,921
5,798,997
Net Realized and Unrealized Gain
(Loss) on Investments 10,967,944
Increase (Decrease) in Net Assets
Resulting From Operations $11,032,751
See notes to financial statements.
STATEMENT OF CHANGES IN NET ASSETS
Increase (Decrease) in Net Assets
Operations
Net investment income (loss) $64,807 $373,607
Net realized gain (loss) 5,168,947 5,639,276
Change in unrealized appreciation
or depreciation 5,798,997 11,325,374
Increase (Decrease) in Net Assets
Resulting From Operations 11,032,751 17,338,257
Distributions to shareholders from
Net investment income:
Class A Shares (524,930) (1,473,251)
Class C Shares (5) (93)
Net realized gain:
Class A Shares (4,308,311) (4,675,910)
Class C Shares (158,527) (152,211)
Total distributions (4,991,773) (6,301,465)
Capital share transactions:
Shares sold:
Class A Shares 13,039,850 29,276,964
Class C Shares 1,004,251 1,834,205
Reinvestment of distributions:
Class A Shares 4,418,924 5,618,030
Class C Shares 150,494 146,275
Shares redeemed:
Class A Shares (18,489,691) (43,143,186)
Class C Shares (773,120) (1,605,586)
Total capital share transactions (649,292) (7,873,298)
Total Increase (Decrease)
in Net Assets 5,391,686 3,163,494
Net Assets
Beginning of period 200,810,539 197,647,045
End of period (including undistributed net investment
income of $63,614 and $523,742, respectively) $206,202,225 $200,810,539
Capital Share Activity
Shares sold:
Class A Shares 682,602 1,639,291
Class C Shares 53,779 104,679
Reinvestment of distributions:
Class A Shares 235,563 326,453
Class C Shares 8,215 8,717
Shares redeemed:
Class A Shares (968,927) (2,419,896)
Class C Shares (41,652) (91,537)
Total capital share activity (30,420) (432,293)
See notes to financial statements.
NOTES TO FINANCIAL STATEMENTS
Note A-Significant Accounting Policies
General: The Calvert World Values International 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.
Estimates: The preparation of the financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amount of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses during the reported
period. Actual results could differ from those estimates.
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 $67,566 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 $4,000 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.
Note C-Investment Activity
During the period, purchases and sales of investments, other than
short-term securities, were $80,004,012 and $62,862,804, respectively.
The cost of investments owned at March 31, 1997 was substantially the same
for federal income tax and financial reporting purposes. Net unrealized
apppreciation aggregated $19,538,854, of which $29,801,543 related to
appreciated securities and $10,262,689 related to depreciated securities.
FINANCIAL HIGHLIGHTS
Periods Ended
September 30,
Class A Shares 1997 1996 1995
Net asset value, beginning $18.62 $17.62 $17.99
Income from investment operations
Net investment income .01 .04 .11
Net realized and unrealized gain (loss) 1.02 1.53 .38
Total from investment operations 1.03 1.57 .49
Distributions from
Net investment income (.05) (.13) -
Excess of net investment income - - -
Net realized gains (.42) (.44) (.86)
Total distributions (.47) (.57) (.86)
Total increase (decrease)
in net asset value .56 1.00 (.37)
Net asset value, ending $19.18 $18.62 $17.62
Total return* 5.59% 9.22% 3.19%
Ratios to average net assets:
Net investment income (loss) .10%(a) .23% .68%
Total expenses ~ 1.92%(a) 1.95% 1.93%
Net expenses 1.79%(a) 1.81% 1.79%
Expenses reimbursed - - -
Portfolio turnover 32.7% 96% 73%
Average commission rate paid $.0176 $.0339 -
Net assets, ending (in thousands) $198,864 $194,032 $191,586
Number of shares outstanding,
ending (in thousands) 10.371 10,422 10,876
Period Ended
September 30,
Class A Shares 1994 1993 1992,(1)
Net asset value, beginning $16.35 $14.31 $15.00
Income from investment operations
Net investment income - .08 .02
Net realized and unrealized
gain (loss) 2.14 2.04 (.71)
Total from investment operations 2.14 2.12 (.69)
Distributions from
Net investment income (.03) (.05) -
Excess of net investment income (.04)
Net realized gains (.43) (.03) -
Total distributions (.50) (.08) -
Total increase (decrease)
in net asset value 1.64 2.04 (.69)
Net asset value, ending $17.99 $16.35 $14.31
Total return* 13.44% 14.95% (4.60%)
Ratios to average net assets:
Net investment income (loss) (.04%) .80% 1.23%(a)
Total expenses ~ - - -
Net expenses 1.96% 1.50% 1.01%(a)
Expenses reimbursed .04% .20% .60%(a)
Portfolio turnover 78% 35% -
Average commission rate paid - - -
Net assets, ending (in thousands) $175,543 $54,280 $8,440
Number of shares outstanding,
ending (in thousands) 9,755 3,319 590
Period Ended
September 30,
Class C Shares 1997 1996 1995 1994(2)
\
Net asset value, beginning $18.20 $17.28 $17.86 $18.24
Income from investment operations
Net investment income (.07) (.15) (.05) (.06)
Net realized and unrealized gain
(loss) .97 1.51 .32 (.32)
Total from investment operations .90 1.36 .27 (.38)
Distributions from
Net realized gains (.42) (.44) (.85) -
Total distributions (.42) (.44) (.85) -
Total increase (decrease)
in net asset value .48 .92 (.58) (.38)
Net asset value, ending $18.68 $18.20 $17.28 $17.86
Total return* 4.99% 8.07% 1.95% (1.27%)
Ratios to average net assets:
Net investment income (loss) (.95%)(a) (.88%) (.47%)(1.16%)(a)
Total expenses ~ 2.98%(a) 3.08% 3.12% -
Net expenses 2.84%(a) 2.93% 2.99% 3.32%(a)
Expenses reimbursed - - .13% .50%(a)
Portfolio turnover 32.7% 96% 73% 78%
Average commission rate paid $.0176 $.0339 - -
Net assets, ending (in thousands $7,338 $6,779 $6,061 $3,620
Number of shares outstanding,
ending (in thousands) 393 373 351 203
(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 expense before
reduction for fees paid indirectly; such reduction are included in the
ratio of net expenses.
(1) From July 2, 1992, inception.
(2) From March 1, 1994, inception.
