September 30, 1998
Annual
Report
Calvert Capital
Accumulation Fund
<PAGE>
Calvert
Capital
Accumulation
Fund
Principal Underwriter
Calvert Distributors, Inc.
4550 Montgomery Avenue
Bethesda, Maryland 20814
Calvert Group Information
To Open an Account
800-368-2748
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(24 hours, 7 days a week)
800-368-2745
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Shareholders: 800-368-2745
Brokers: 800-368-2746
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800-541-1524
Branch Office
4550 Montgomery Avenue
Suite 1000 North
Bethesda, Maryland 20814
Registered, Certified
or Overnight Mail
Calvert Group
c/o NFDS, 6th Floor
1004 Baltimore
Kansas City, MO 64105-1807
Web Site
http://www.calvertgroup.com
Please check the inside back cover for
Calvert Group's Family of Funds.
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.
TABLE OF CONTENTS
President's Letter 1
Portfolio Manager Remarks 2
Report of Independent Accountants 4
Statement of Net Assets 5
Statements of Operations 8
Statements of Changes in net Assets 9
Notes to Financial Statements 10
Financial Highlights 13
Dear Shareholders:
I'd like to take a minute to share with you our views on the current
investment environment and offer some information you can use to put recent
financial market events in perspective.
Today's investment climate reflects an unprecedented confluence of factors:
1. Global economic turmoil. The financial crisis touched off in Asia has
spread, by way of Russia, to emerging markets in Latin America, Africa and
elsewhere. Weakened economies abroad affect the profit outlook for U.S.
companies.
2. Low interest rates in the U.S. The shakeup of world economies and markets
caused investors to seek shelter in the safest securities, especially U.S.
Treasuries. Increased demand for fixed-income securities has pushed Treasury
yields to historic lows.
3. A high level of volatility. The Standard & Poor's 500 Stock Index posted 17
consecutive quarters of positive returns before surprising investors with
negative returns for the third quarter of 1998. Since the end of that quarter,
the S&P 500 has rallied back and, as of this writing, is in positive territory
again for the year.
No one can assure you there won't be further jolts. However, we believe the
underpinnings of the market are solid. Our forecast calls for slower growth in
the U.S., but not a recession, and continued low interest rates. We are also
encouraged by recent progress to implement solutions that should help to take
the pressure off world markets.
You should know that Calvert Group fund managers are working to capitalize on
opportunities, within appropriate levels of risk for each portfolio. This
challenging environment underscores the value of professional money
management, and we certainly appreciate your trust.
Sincerely,
Barbara J. Krumsiek
President and CEO
October 20, 1998
<PAGE>
Capital Accumulation Fund Portfolio Statistics
September 30, 1998
Investment Performance
6 Months 12 Months
ended ended
9/30/98 9/30/98
Class A (10.39%) 3.37%
Class B (10.95%) N/A
Class C (10.66%) 2.52%
S&P Midcap 400
Index TR (6.93%) 9.08%
Lipper Mid-Cap
Funds Average (19.02%) (11.95%)
Ten Largest Stock Holdings
% of Net Assets
BMC Software, Inc. 3.93%
Paychex, Inc. 3.73%
Sterling Software, Inc. 3.73%
Solectron Corp. 3.54%
Sterling Commerce, Inc. 3.34%
ALZA Corp. 3.25%
Network Associates, Inc. 3.12%
Altera Corp. 3.02%
G&K Services, Inc., Class A 2.90%
Axciom Corp. 2.88%
Total 33.44%
Asset Allocation
Stocks 97%
Cash or Cash Equivalents 3%
Total 100%
Investment performance does not reflect the deduction of any front-end or
deferred sales charge.
TR represents total return.
Source: Lipper Analytical Services, Inc.
Portfolio Statistics
September 30, 1998
Average Annual Total Returns
Class A Shares
One year (1.51%)
Since inception 16.81%
(10/31/94)
Class B Shares
Since inception (15.44%)
(3/31/98)
Class C Shares
One year 1.52%
Since inception 17.35%
(10/31/94)
Performance Comparison
Comparison of change in value of $10,000 investment.
(Source:Lipper Analytical Services, Inc.)
Line graph here 11/1/94 - 9/98:
Calvert Capital Accumulation Fund (A) - $18,391
Calvert Capital Accumulation Fund (B) - 18,723
Lipper Mid-Cap Fund Index - $16,321
S&P Mid-Cap 400 Index - $18,532
Top Five Economic Sectors
% of Equity Holdings
Technology 31.19%
Business Equipment
and Services 19.55%
Health Care 12.91%
Financial Services 12.24%
Retail 6.98%
Total returns assume reinvestment of dividends and reflect the deduction of
the Fund's maximum front-end or deferred sales charge. No sales charge has
been applied to the index used for comparison. Past performance is no
guarantee of future results.
Ed Brown
of Brown Capital Management Company
How would you characterize the investment climate during the past year?
For the 12 months, the climate for investing in U.S. stocks was generally
hospitable, evidenced by modest inflation, relatively stable interest rates
and sustained corporate profits growth. Despite this favorable environment,
investor psychology and confidence were dampened by domestic political
uncertainty and economic problems in Asia and Russia. As a result, the past 12
months were marked by increasing volatility and, in our opinion,
indiscriminate selling of companies with solid fundamentals.
For the year, the Standard & Poor's 400 Midcap Index returned (6.07%),
compared to a 9.08% return for the large-company proxy, the Standard & Poor's
500 Stock Index. The Midcap Index's returns were driven by computer software
companies and health care-related distributors, on the positive side, and by
electronic components and equipment, health services and leisure services on
the negative side.
What steps did managers take to enhance returns and reduce risks?
We held to our strategy, which is designed to generate superior long-term
results regardless of the investment climate. We utilize a bottom-up,
fundamental approach to finding the most promising opportunities and use a
proprietary valuation methodology to identify stocks selling at reasonable
prices. As another way of seeking to maximize return and minimize risk, we
construct the portfolio around our "best ideas," selecting those companies
that stand to benefit from the underlying themes and trends we see at work in
the stock market.
During this past year of increased market volatility, we have re-evaluated all
Fund holding to make sure we have the same high level of confidence we had
when we purchased the stock. And, as stock prices for medium-sized companies
fell to even more attractive levels relative to large-companies, we sought to
selectively increase our exposure to this sector. We believe that confidence
and conviction are the key to making sound investment decisions, particularly
when the markets are highly volatile, and these qualities form the foundation
of our strategy.
How has the Fund performed relative to its peer group?
We're pleased to have generated a positive return for the 12-month period and
outperformed both the S&P 400 Midcap Index and the Lipper Average of similar
funds. The majority of the relative outperformance can be attributed to stock
selection, an overweighted position in the technology industry and our
exposure to large companies. Large-company stocks led small-company stocks
especially in the first half of the Fund's fiscal year. This sector also
proved to be most susceptible to market volatility.
What's your outlook for the U.S. market?
We view the market as reasonably valued, based on expectations for continued
low interest rates and a benign level of inflation. While we do not expect
economic conditions in the U.S. to deteriorate, problems overseas could
adversely affect the fundamental growth prospects for U.S.-based companies.
More specifically, the Fund has little direct exposure to international
securities, but share prices for our holdings will likely remain volatile as
the financial crises in Asia, Russia and now Latin America play out. Our
long-term view of the market's fundamentals is constructive.
October 14, 1998
<PAGE>
Report of Independent Accountants
To the Board of Directors of Calvert World Values Fund, Inc. and Shareholders
of Calvert Capital Accumulation Fund:
In our opinion, the accompanying statement of net assets and the related
statement of operations, statement of changes in net assets and financial
highlights present fairly, in all material respects, the financial position of
Calvert Capital Accumulation Fund, (hereafter referred to as the "Fund"), at
September 30, 1998, and the results of its operations for the year then ended,
the changes in its net assets for each of the two years in the period then
ended and the financial highlights for each of the periods indicated therein,
in conformity with generally accepted accounting principles. Theses financial
statements and financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in
accordance with generally accepted auditing standards which require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall financial
statement presentation. We believe that our audits, which included
confirmation of securities at September 30, 1998 by correspondence with
custodians provide a reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
Baltimore, Maryland
November 6, 1998
<PAGE>
Statement of Net Assets
September 30, 1998
Equity Securities - 97.1% Shares Value
Communications Equipment - 3.0%
ADC Telecommunications, Inc. * 71,900 $1,518,888
Northern Telecom, Ltd. 33,360 1,067,520
2,586,408
Computer - Peripherals - 2.7%
EMC Corp. * 39,378 2,251,929
Computer - Software and Services - 21.3%
BMC Software, Inc. * 55,500 3,333,469
Compuware Corp. * 22,100 1,301,138
Microsoft Corp. * 12,100 1,331,756
Network Associates, Inc. * 74,703 2,651,956
Oracle Corp. * 29,480 858,605
Parametric Technology Corp. * 159,900 1,608,994
Platinum Technology, Inc. * 57,700 1,038,600
Sterling Commerce, Inc. * 81,931 2,836,861
Sterling Software, Inc. * 114,900 3,166,931
18,128,310
Distributors - Food and Health - 2.8%
Cardinal Health, Inc. 23,150 2,390,238
Electrical Equipment - 4.6%
Belden, Inc. 66,600 894,938
Solectron Corp. * 62,700 3,009,600
3,904,538
Electronics - Semiconductors - 3.0%
Altera Corp. * 72,900 2,560,612
Financial - Diversified - 2.5%
SLM Holding Corp. 64,600 2,095,462
Health Care - Hospital Management - 2.7%
Health Management Associates, Inc., Class A * 126,400 2,306,800
Health Care - Products and Supplies - 1.6%
Boston Scientific Corp. * 26,500 1,361,438
Health Care - Special Services - 5.4%
ALZA Corp. * 63,600 2,758,650
Quintiles Transnational Corp. * 41,900 1,833,125
4,591,775
Home Building - 1.2%
Rouse Co. . . 39,100 1,053,256
Housewares - 2.0%
Newell Co. . . 36,700 1,690,494
<PAGE>
Equity Securities - (Cont'd) Shares Value
Insurance - Life and Health - 2.0%
AFLAC, Inc. 61,000 $1,742,312
Investment Banking / Brokerage - 0.9%
Legg Mason, Inc. 29,600 778,850
Investment Management - 4.7%
Franklin Resources, Inc. 56,165 1,684,950
T. Rowe Price Associates, Inc. 77,700 2,282,438
3,967,388
Leisure - 2.5%
Harley Davidson, Inc. 72,100 2,117,937
Oil and Gas - Equipment - 2.4%
Smith International, Inc. * 74,600 2,046,837
Restaurants - 1.8%
Cheesecake Factory, Inc. * 96,800 1,500,400
Retail - Building Supplies - 2.9%
Fastenal Co. 65,800 1,645,000
Home Depot, Inc. 19,700 778,150
2,423,150
Retail - Department Stores - 1.7%
Kohls Corp. * 36,100 1,407,900
Retail - Discounters - 1.3%
Dollar General Corp. 43,001 1,144,908
Retail - Specialty - 3.7%
Autozone, Inc. * 89,600 2,206,400
Casey's General Stores, Inc. 62,400 936,000
3,142,400
Services - Advertising and Marketing - 5.5%
Acxiom Corp. * 98,500 2,444,031
Catalina Marketing Corp. * 46,700
2,194,900
4,638,931
Services - Commercial and Consumer - 2.9%
G & K Services, Inc., Class A 52,600 2,465,625
Services - Data Processing - 8.7%
Equifax, Inc. 64,900 2,316,119
Fiserv, Inc. * 41,000 1,888,562
Paychex, Inc. 61,500 3,171,094
7,375,775
<PAGE>
Equity Securities - (Cont'd) Shares Value
Services - Employment - 3.3%
Interim Services, Inc. * 62,400 $1,283,100
Robert Half International, Inc. * 35,300 1,524,519
2,807,619
Total Equity Securities (Cost $84,250,220)
82,481,292
Principal
Repurchase Agreements - 2.6% Amount
State Street Bank: 5.35%, dated
9/30/98, due 10/1/98
(Collateral: $2,310,118, U.S.
Treasury, 3.64%, 11/30/00)
$2,200,000 2,200,000
Total Repurchase Agreements
(Cost $2,200,000)
2,200,000
Total Investments (Cost $86,450,220) - 99.7%
84,681,292
Other assets in excess of liabilities - 0.3%
245,593
Net Assets - 100%
$84,926,885
Net Assets Consist of:
Paid-in capital applicable to the following
shares of common stock,
250,000,000 shares of $0.01 par
value authorized for Class A,
Class B and Class C combined:
Class A: 2,951,716 shares outstanding
$64,961,517
Class B: 130,978 shares outstanding
3,700,813
Class C: 265,853 shares outstanding
6,100,653
Accumulated net realized gain (loss) on investments
11,932,830
Net unrealized appreciation (depreciation) on investments
(1,768,928)
Net Assets
$84,926,885
Net Asset Value Per Share
Class A (based on net assets of $75,068,456)
$25.43
Class B (based on net assets of $3,310,741) $25.28
Class C (based on net assets of $6,547,688) $24.63
* Non-income producing
See notes to financial statements.
<PAGE>
Statement of Operations
Year Ended September 30, 1998
Net Investment Income
Investment Income
Interest income $54,652
Dividend income (net of foreign taxes of $375) 338,804
Total investment income 393,456
Expenses
Investment advisory fee 593,353
Transfer agency fees and expenses 241,446
Distribution Plan expenses:
Class A 239,422
Class B 7,885
Class C 54,591
Directors' fees and expenses 21,844
Administrative fees 74,654
Custodian fees 27,698
Registration fees 51,626
Reports to shareholders 33,326
Professional fees 8,734
Miscellaneous 16,660
Reimbursement from Advisor (2,017)
Total expenses 1,369,222
Fees paid indirectly (105,559)
Net expenses 1,263,663
Net Investment Income (Loss) (870,207)
Realized and Unrealized Gain (Loss) on Investments
Net realized gain (loss) on:
Securities 13,287,725
Futures 91,580
13,379,305
Change in unrealized appreciation or (depreciation) (12,767,191)
Net Realized and Unrealized Gain
(Loss) on Investments 612,114
Increase (Decrease) in Net Assets
Resulting From Operations $(258,093)
See notes to financial statements.
<PAGE>
Statements of Changes in Net Assets
Year Ended Year Ended
Sept. 30, Sept. 30,
Increase (Decrease) in Net Assets 1998 1997
Operations
Net investment income (loss) $(870,207) $(567,674)
Net realized gain (loss) 13,379,305 6,355,994
Change in unrealized appreciation
or (depreciation) (12,767,191) 4,031,882
Increase (Decrease) in Net Assets
Resulting From Operations (258,093) 9,820,202
Distributions to shareholders from
Net realized gain:
Class A Shares (5,175,390) -
Class C Shares (417,340) -
Total distributions (5,592,730) -
Capital share transactions:
Shares sold:
Class A Shares 48,471,955 25,046,771
Class B Shares 3,722,714 -
Class C Shares 3,607,052 1,469,185
Reinvestment of distributions:
Class A Shares 4,897,289 -
Class C Shares 391,618 -
Shares redeemed:
Class A Shares (28,145,595) (19,310,865)
Class B Shares (21,901) -
Class C Shares (1,080,594) (1,088,191)
Total capital share transactions 31,842,538 6,116,900
Total Increase (Decrease) in Net Assets 25,991,715 15,937,102
Net Assets
Beginning of year 58,935,170 42,998,068
End of year $84,926,885 $58,935,170
Capital Share Activity
Shares sold:
Class A Shares 1,716,355 1,067,042
Class B Shares 131,783 -
Class C Shares 132,018 64,057
Reinvestment of distributions:
Class A Shares 209,017 -
Class C Shares 17,154 -
Shares redeemed:
Class A Shares (985,970) (821,581)
Class B Shares (805) -
Class C Shares (40,384) (48,629)
Total capital share activity 1,179,168 260,889
See notes to financial statements.
<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 three classes of shares of
capital stock. Class A shares are sold with a maximum front-end sales charge
of 4.75%. Effective April 1, 1998, the Fund began to offer Class B shares of
capital stock. Class B shares are sold without a front-end sales charge.
With certain exceptions, the Fund will impose a deferred sales charge at the
time of redemption, depending on how long you have owned the shares. Effective
June 1, 1998, the Fund converted its existing Class C shares to new Class C
shares. Class C shares are sold without a front-end sales charge. With certain
exceptions, the Fund will impose a deferred sales charge on shares sold within
one year. Class B and Class C shares have a higher level of expense than Class
A shares, including higher Distribution Plan expenses. 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. Although risk is mitigated by
the collateral, the Fund could experience a delay in recovering its value and
a possible loss of income or value if the counterparty fails to perform in
accordance with the terms of the agreement.
Futures Contracts: The Portfolio may enter into futures contracts agreeing to
buy or sell a financial instrument for a set price at a future date. The
Portfolio maintains securities with a value equal to its obligation under each
contract. Initial margin deposits of either cash or securities are made upon
entering into futures contracts; thereafter, variation margin payments are
made or received daily reflecting the change in market value. Unrealized or
realized gains and losses are recognized based on the change in market value.
Risks of futures contracts arise from the possible illiquidity of the futures
markets and the movement in the value of the investment or in interest rates.
Security Transactions and Investment Income: Security transactions are
accounted for on trade date. Realized gains and losses are recorded on an
identified cost basis. Dividend income is recorded on the ex-dividend date.
Interest income, accretion of discount and amortization of premium are
recorded on an accrual basis. Investment income, expenses and realized and
unrealized gains and losses are allocated to separate classes of shares based
upon the relative net assets of each class.
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 financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses during the
reporting period. Actual results could differ from those estimates.
Expense Offset Arrangements: The Fund has an arrangement with its custodian
bank whereby the custodian's fees may be paid indirectly by credits earned on
the Fund's cash on deposit with the bank. Such a deposit arrangement is an
alternative to overnight investments.
Federal Income Taxes: No provision for federal income or excise tax is
required since the Fund intends to 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 an
annual rate of .80% of the Fund's average daily net assets. Under the terms of
the agreement, $83,889 was payable at period end. The Fund pays a monthly
performance fee of plus or minus up to .05%, on an annual basis, of average
daily net assets of the performance period depending on the Fund's performance
compared to the S&P Mid-Cap 400 Index. For the year ended September 30, 1998,
the performance fee adjustment decreased management fees by $3,877.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. Under the terms of the agreement,
$6,834 was payable at year end. The Advisor voluntarily waived and reimbursed
the fund for advisory fees, administrative fees, and other operating expenses
of $2,017.
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%, 1.00% and 1.00% annually of average daily net assets of each
Class A, Class B and Class C, respectively. Under the terms of the agreement,
$28,944 was payable at year end.
The Distributor received $138,740 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.
Under the terms of the agreement, $8,569 was payable at year end.
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. Director's
fees are allocated to each of the funds served.
Note C - Investment Activity
During the year, purchases and sales of investments, other than short-term
securities, were $80,480,755 and $54,420,791, respectively.
The cost of investments owned at September 30, 1998 was substantially the same
for federal income tax and financial reporting purposes. Net unrealized
depreciation aggregated $1,768,928, of which $9,009,383 related to appreciated
securities and $10,778,311 related to depreciated securities.
Note D - Line of Credit
A financing agreement is in place with all Calvert Group Funds and State
Street Bank and Trust Company ("the Bank"). Under the agreement, the Bank is
providing an unsecured line of credit facility, in the aggregate amount of $50
million ($25 million committed and $25 million uncommitted), to be accessed by
the Funds for temporary or emergency purposes only. Borrowings under this
facility bear interest at the overnight Federal Funds Rate plus .50% per
annum. A commitment fee of .10% per annum will be incurred on the unused
portion of the committed facility which will be allocated to all participating
funds. This fee is paid quarterly in arrears. The Fund had no loans
outstanding pursuant to this line of credit at September 30, 1998.
Tax Information (Unaudited)
The Fund designates $4,046,973 as capital gain dividends paid during fiscal
year ended September 30, 1998. Of the amount designated, 54.58% is taxable at
28% and 45.42% is taxable at 20%.
<PAGE>
Financial Highlights
Years Ended
Sept. 30, Sept.30,
Class A Shares 1998 1997
Net asset value, beginning $27.21 $22.55
Income from investment operations
Net investment income (loss) (.25) (.25)
Net realized and unrealized gain (loss) .96 4.91
Total from investment operations .71 4.66
Distributions from
Net investment income - -
Net realized gain (2.49) -
Total distributions (2.49) -
Total increase (decrease) in net asset value (1.78) 4.66
Net asset value, ending $25.43 $27.21
Total return* 3.37% 20.67%
Ratios to average net assets:
Net investment income (loss) (1.08%) (1.09%)
Total expenses+ 1.74% 1.91%
Net expenses 1.61% 1.85%
Expenses reimbursed - -
Portfolio turnover 77% 126%
Net assets, ending (in thousands) $75,068 $54,751
Number of shares outstanding ending (in thousands) 2,952 2,012
Periods Ended
Sept. 30, Sept.30,
Class A Shares 1996 1995^
Net asset value, beginning $21.48 $15.00
Income from investment operations
Net investment income (loss) (.24) (.11)
Net realized and unrealized gain (loss) 1.88 6.61
Total from investment operations 1.64 6.50
Distributions from
Net investment income - (.02)
Net realized gain (.57) -
Total distributions (.57) (.02)
Total increase (decrease) in net asset value 1.07 6.48
Net asset value, ending $22.55 $21.48
Total return* 7.92% 43.40%
Ratios to average net assets:
Net investment income (loss) (1.56%) (1.55%)(a)
Total expenses+ 2.16% 2.35%(a)
Net expenses 1.98% 2.06%(a)
Expenses reimbursed - .05%(a)
Portfolio turnover 114% 95%
Net assets, ending (in thousands) $39,834 $16,111
Number of shares outstanding, ending (in thousands) 1,767 750
Financial Highlights
<PAGE>
Financial Highlights
Period Ended
September 30,
Class B Shares 1998 #
Net asset value, beginning $28.39
Income from investment operations
Net investment income (loss) (.16)
Net realized and unrealized gain (loss) (2.95)
Total from investment operations (3.11)
Distributions from
Net investment income -
Net realized gain -
Total distributions -
Total increase (decrease) in net asset value (3.11)
Net asset value, ending $25.28
Total return* (10.95)%
Ratios to average net assets:
Net investment income (loss) (2.62%)
Total expenses+ 3.31%
Net expenses 3.01%
Expenses reimbursed .26%
Portfolio turnover 77%
Net assets, ending (in thousands) $3,311
Number of shares outstanding, ending (in thousands) 131
<PAGE>
Years Ended
Sept. 30, Sept.30,
Class C Shares 1998 1997
Net asset value, beginning $26.64 $22.34
Income from investment operations
Net investment income (loss) (.40) (.47)
Net realized and unrealized gain (loss) .88 4.77
Total from investment operations .48 4.30
Distributions from
Net investment income - -
Net realized gain (2.49) -
Total distributions (2.49) -
Total increase (decrease) in net asset value (2.01) 4.30
Net asset value, ending $24.63 $26.64
Total return* 2.52% 19.25%
Ratios to average net assets:
Net investment income (loss) (1.98%) (2.30%)
Total expenses+ 2.75% 3.11%
Net expenses 2.50% 3.05%
Expenses reimbursed - -
Portfolio turnover 77% 126%
Net assets, ending (in thousands) $6,548 $4,184
Number of shares outstanding, ending (in thousands) 266 157
Periods Ended
Sept. 30, Sept.30,
Class C Shares 1996 1995^
Net asset value, beginning $21.55 $15.00
Income from investment operations
Net investment income (loss) (.55) (.15)
Net realized and unrealized gain (loss) 1.91 6.70
Total from investment operations 1.36 6.55
Distributions from
Net investment income - -
Net realized gain (.57) -
Total distributions (.57) -
Total increase (decrease) in net asset value .79 6.55
Net asset value, ending $22.34 $21.55
Total return* 6.56% 43.67%
Ratios to average net assets:
Net investment income (loss) (2.82%) (3.13%)(a)
Total expenses+ 3.42% 3.79%(a)
Net expenses 3.24% 3.50%(a)
Expenses reimbursed - 2.79%(a)
Portfolio turnover 114% 95%
Net assets, ending (in thousands) $3,164 $1,992
Number of shares outstanding, ending (in thousands) 142 92
(a) Annualized
+ Ratio reflects total expenses before reduction for fees paid indirectly;
such reductions are included in the ratio of net expenses.
* Total return does not reflect deduction of any front-end or deferred sales
charge.
^ From October 31, 1994 inception
# From April 1, 1994 inception
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Calvert Group's
Family of Funds
Tax-Exempt
Money Market Funds
CTFR Money Market Portfolio
CTFR California Money Market Portfolio
Taxable
Money Market Funds
First Government Money Market Fund
CSIF Money Market Portfolio
Balanced Fund
CSIF Managed Growth Portfolio
Municipal Funds
CTFR Limited-Term Portfolio
CTFR Long-Term Portfolio
CTFR Vermont Municipal Portfolio
National Muni. Intermediate Portfolio
California Muni. Intermediate Portfolio
Maryland Muni. Intermediate Portfolio
Virginia Muni. Intermediate Portfolio
Taxable Bond Funds
CSIF Bond Portfolio
Income Fund
Equity Funds
New CSIF Managed Index Portfolio
CSIF Equity Portfolio
Capital Accumulation Fund
CWV International Equity Fund
New Vision Small Cap Fund
New Africa Fund
Calvert Group
INformation
for distribution to prospective investors unless
preceded or accompanied by a prospectus.
