September 30, 1999
annual
report
Calvert capital
accumulation fund
<PAGE>
Calvert Capital
Accumulation
Fund
To Open an Account
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(24 hours, 7 days a week)
800-368-2745
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Branch Office
4550 Montgomery Avenue
Suite 1000 North
Bethesda, Maryland 20814
Registered, Certified
or Overnight Mail
Calvert Group
c/o NFDS,
330 West 9th Street
Kansas City, MO 64105
Web Site
http://www.calvert.com
Principal Underwriter
Calvert Distributors, Inc.
4550 Montgomery Avenue
Suite 1000 North
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.
Calvert Group's
Family of Funds
Tax-Exempt
Money Market Funds
CTFR Money Market Portfolio
CTFR California Money Market Portfolio
Taxable
Money Market Funds
First Government Money Market Fund
CSIF Money Market Portfolio
Balanced Fund
CSIF Balanced Portfolio
Municipal Funds
CTFR Limited-Term Portfolio
CTFR Long-Term Portfolio
CTFR Vermont Municipal Portfolio
National Muni. Intermediate Portfolio
California Muni. Intermediate Portfolio
Maryland Muni. Intermediate Portfolio
Virginia Muni. Intermediate Portfolio
Taxable Bond Funds
CSIF Bond Portfolio
Income Fund
Equity Funds
CSIF Managed Index Portfolio
CSIF Equity Portfolio
Capital Accumulation Fund
CWV International Equity Fund
New Vision Small Cap Fund
New Africa Fund
<PAGE>
Table
of
Contents
President's Letter
1
Social Update
2
Portfolio
Manager Remarks
3
Report of Independent Accountants
6
Statement
of Net Assets
7
Statement
of Operations
10
Statements
of Changes in
Net Assets
11
Notes to
Financial Statements
13
Financial Highlights
16
Y2K Update
20
Dear Shareholders:
1999 may be characterized as a year of
changing fortunes. We have witnessed a
strong recovery in the markets of Asia and
the Far East, while European markets have
enjoyed mixed blessings. At home, top
performing stocks were again concentrated by
capitalization range and industry group,
with large-capitalization companies,
technology, and internet stocks fueling the
advance. Other categories, such as small cap
stocks and health care stocks, have lagged
these advances.
We have seen a watchful Federal Reserve
raise interest rates in response to
the lessening of global liquidity concerns
and rising price pressures -- the
latter being a downside to the benefit of
low unemployment.
On the whole, the current economic
environment is very positive, but in any
environment -- particularly one marked by
volatility such as today's -- investor
discipline is more important than ever. In
reviewing our recently redesigned Web site,
www.calvert.com, you will see that we now
offer more interactive information tools to
help you make the most informed decisions.
As always, we encourage you to make
decisions based on your financial objectives
and tolerance for risk. You should routinely
review your asset allocation to be sure you
are positioned at a comfortable risk level.
Your financial professional can suggest
strategies that keep you on track to meet
long-term financial objectives.
We appreciate your investment in Calvert
Group funds and look forward to helping you
meet your financial goals.
Sincerely,
Barbara J. Krumsiek
President and CEO
October 27, 1999
<PAGE>
Social
Update
Calvert Expands Its Web Site
Calvert has expanded its Web site, designing
it to be even more user-friendly to you, the
shareholder. It also has a new Web address,
www.calvert.com. Importantly, your Web site
also provides public education about
socially responsible investing. A complete
list of portfolio holdings for the fund is
now posted monthly on the site -- a first in
the mutual fund industry. A new feature was
added to the "Know What You Ownr" service:
Individuals can now determine whether their
mutual funds invest in firearms
manufacturers,
as well as continue to find out whether they
own stock in tobacco companies. Please visit
us at www.calvert.com and learn more about
how Calvert Group can meet your needs.
<PAGE>
Ed Brown
of Brown Capital Management Company
How did the Fund perform against its
benchmark?
During the past year, the Portfolio's Class
A shares returned a gain of 14.91%, under-
performing the S&P Midcap 400 Index by
10.59%. Most of the under-performance
occurred during the third quarter of 1999.
Through the six-month period ended March 31,
1999, the Fund had slightly outperformed the
S&P Midcap 400 by 155 basis points. We
attribute the relative under-performance of
the Fund during the year to two factors.
First, poor stock selection, particularly in
the consumer cyclicals and consumer staples
sectors, where stocks under-performed
already depressed sector performance.
Second, our lack of exposure to the energy
sector, which along with the technology
sector, were the two strongest performing
sectors in the third quarter.
How was Fund performance influenced by
market and economic events?
The past year has truly demonstrated the
resilience of the U.S. stock market. Despite
operating in a rising interest rate
environment, large cap stocks and mid cap
stocks soared. Sustained economic growth in
turn supported solid corporate earnings
growth and higher stock valuations. Such
industry groups as communications equipment,
spurred by changes in the global
telecommunications landscape, and electronic
components and equipment, driven by
increasing use of integrated circuits, led
the S&P Midcap 400 Index to higher levels.
Some of the poorest performing industry
groups in the S&P Midcap 400 Index included
consumer services, health care product
Portfolio Statistics
September 30, 1999
Investment Performance
6 Months12 Months
ended ended
9/30/99 9/30/99
Class A
(5.48%) 14.91%
Class B
(5.81%) 13.85%
Class C
(5.86%) 14.02%
Class I
(5.11%) N/A
S&P Midcap 400
Index TR 4.57%
25.50%
Lipper Mid-Cap
Funds Average 6.85% 32.86%
Ten Largest Stock Holdings
% of Net A
ssets
BMC Software, Inc. 4.84%
Advent Software, Inc. 4.72%
Fastenal Company 3.84%
Dollar General Corp. 3.80%
Compuware Corp. 3.72%
SLM Holding Corp. 3.68%
Paychex, Inc. 3.64%
ADC Telecommunication 3.46%
Legg Mason, Inc. 3.39%
Cardinal Health, Inc. 3.02%
Total
38.11%
Asset Allocation
Stocks
91%
Cash or Cash Equivalents 9%
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.
<PAGE>
Portfolio Statistics
September 30, 1999
Average Annual Total Returns
Class A Sh
ares
One year
9.36%
Since inception 16.41%
(10/31/94)
Class B Sh
ares
One year
8.90%
Since inception (2.42%)
(4/1/98)
Class C Sh
ares
One year
13.93%
Since inception 16.64%
(10/31/94)
Class I Sh
ares
Since inception (.73%)
(3/1/99)
Performance Comparison
Comparison of change in value of $10,000
investment. (Source:Lipper Analytical
Services, Inc.)
INSERT LINE GRAPH HERE
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. The value of
an investment in Class A & C shares is
plotted in the line graph. The value of an
investment in another class of shares would
be different. Past performance is no
guarantee
of future results.
distributors, and health care services. The
ongoing dialogue in Washington regarding
health care reform and patients rights has
introduced a heavy dose
of uncertainty causing investors to avoid
health care stocks. When the dust settles,
selected health care companies' fundamentals
will be better
appreciated in the marketplace and we are
remaining opportunistic investors
in the health care industry.
Have events modified your current strategic
thinking?
Our management strategy is time-tested and
has been effective in producing competitive
long-term investment returns regardless of
the interest rate environment. Brown Capital
Management employs a bottoms-up fundamental
approach to stock selection in conjunction
with a "Growth At A Reasonable Price", or
GARP, philosophy. The Fund's Portfolio is
constructed using our "best ideas," a
strategy we believe implicitly seeks to
maximize return per unit of risk. The
portfolio managers have been actively
researching mid-cap stocks for inclusion in
the portfolio. We have also sought to take
advantage of the valuation discrepancy
between large cap and mid-cap companies by
maintaining the portfolio's bias to mid-cap
companies. We believe that confidence and
conviction, not stubbornness, is the key to
making a sound investment decision,
particularly when markets are highly
volatile.
<PAGE>
What is your general outlook for equity
markets?
We are currently restructuring the portfolio
to maintain an appropriate level
of diversification and also broaden economic
sector exposure. In view of the
attractiveness of mid cap stocks relative to
large cap stocks, in our opinion,
we are structuring the portfolio to maintain
its mid cap bias.
We view the U.S. equity market, defined by
the S&P 500 Index, to be fully valued at a
current price/earnings multiple of 24.4
times our twelve month forward earnings
estimate (6.15% 5-year interest-rate
environment). Inflation and interest rates
currently appear to be in a holding pattern.
At a time when the Fed keeps one eye on the
economy and the other on the stock market,
market analysts are watchful for signs of
wealth effect induced inflation and wage
rate inflation. While we expect the market
to continue to exhibit volatility as it
discounts Fed expectations, earnings
expectations, interest rate expectations,
and global economic expectations, we believe
our investment process over the long term
will produce superior returns regardless of
the environment.
October 27, 1999
Portfolio Statistics
September 30, 1999
Portfolio Characteristics
Capital S&P
Accumulation Midcap 400
Fund index
Number of Stocks 36 400
Median Market
Capitalization ($bil) 4.51 2.71
(by portfolio weight)
Price/Earnings
Ratio 32.45
23.59
Earnings Per Share
Growth 28.37%
22.92%
Yield 0.31%
1.21%
(return on capital investment)
Volatility Measures
Capital S&P
Accumulation Midcap 400
Fund index
Beta1 1.09
0.96
R-Squared2 0.67
0.63
1Measure of volatility compared to the S&P
500 Stock Index (S&P 500) beta of 1. The
higher the beta, the higher the risk and
potential reward.
2Measure of correlation between the Fund's
returns and the overall market's (S&P 500)
returns. An R-Squared of 0 would mean no
correlation; an R-Squared of 1 would mean
total correlation.
Source: Vestek
<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, the statements of changes in net
assets and the financial highlights present
fairly, in all material respects, the
financial position of Calvert Capital
Accumulation Fund, (one of the portfolios
comprising Calvert World Values Fund, Inc.,
hereafter referred to as the "Fund"), at
September 30, 1999, and the results of its
operations, the changes in its net assets
and the financial highlights for each of the
periods presented, in conformity with
accounting principles generally accepted in
the United States. These financial
statements and the 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 auditing standards generally
accepted in the United States 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, 1999 by correspondence with
custodians and brokers, provide
a reasonable basis for the opinion expressed
above.
PricewaterhouseCoopers LLP
Baltimore, Maryland
November 10, 1999
<PAGE>
Statement of Net Assets
September 30, 1999
Equity Securities - 90.6% Shares
Value
Communications Equipment - 3.5%
ADC Telecommunications, Inc. *
102,000 $4,277,625
Computer - Hardware - 1.4%
Network Associates, Inc. * 94,200
1,801,575
Computer - Software and Services - 18.0%
Advent Software, Inc. * 93,700
5,832,825 BMC Software, Inc.
* 83,600 5,982,625 Compuware
Corp. * 176,300 4,594,819
Parametric Technology Corp. * 224,600
3,032,100 Sterling Software,
Inc. * 137,800 2,756,000
22,198,369
Distributors - Food and Health - 3.0%
Cardinal Health, Inc. 68,525 3,734,613
Electrical Equipment - 3.5%
Sanmina Corp. * 39,300 3,040,837
Solectron Corp. * 17,500 1,256,719
4,297,556
Electronics - Semiconductors - 2.3%
Altera Corp. * 65,900 2,858,413
Financial - Diversified - 7.1%
Legg Mason, Inc. 109,300 4,187,556
SLM Holding Corp. 105,700 4,545,100
8,732,656
Health Care - Products and Supplies - 4.4%
Boston Scientific Corp. * 72,400
1,787,375 Guidant Corp.
45,600 2,445,300 St. Jude M
edical, Inc. * 39,400 1,241,100
5,473,775
Health Care - Special Services - 1.0%
ALZA Corp. * 30,100 1,288,656
Household Product - Non Durable - 2.0%
Dial Corp. 96,500 2,460,750
Insurance - Life and Health - 2.3%
AFLAC, Inc. 67,800 2,839,125
Investment Banking / Brokerage - 2.7%
Franklin Resources, Inc. 108,265
3,329,149
Investment Management - 2.6%
T. Rowe Price Associates, Inc.
115,500 3,169,031
<PAGE>
Equity Securities - Cont'd Shares
Value
Leisure - 2.1%
Harley Davidson, Inc. 52,000 $2,603,250
Office Equipment and Supplies - 1.0%
Staples, Inc. * 58,100 1,267,306
Oil and Gas - Equipment - 1.0%
Smith International, Inc. * 28,900
1,170,450
Retail - Building Supplies - 3.8%
Fastenal Co. 100,600 4,740,775
Retail - Discounters - 6.6%
Dollar General Corp. 152,076 4,695,347
Dollar Tree Stores, Inc. * 86,800
3,466,575
8,161,922
Services - Advertising and Marketing - 4.8%
Acxiom Corp. * 141,900 2,789,222
Catalina Marketing Corp. * 37,400
3,171,987
5,961,209
Services - Commercial and Consumer - 4.3%
Cintas Corp. 48,300 2,792,344
G & K Services, Inc., Class A 62,600
2,535,300
5,327,644
Services - Computer Systems - 1.7%
Keane, Inc. * 90,200 2,057,687
Services - Data Processing - 8.7%
Equifax, Inc. 110,200 3,099,375
Fiserv, Inc. * 95,750 3,111,875
Paychex, Inc. 131,750 4,495,969
10,707,219
Services - Employment - 2.8%
Robert Half International, Inc. *
144,200 3,460,800
Total Equity Securities (Cost
$102,457,047) $111,919,555
<PAGE>
Principal
Variable Rate Demand Notes - 10.0%
Amount Value
Wenatchee Valley Clinic, 5.40%, 11/23/24
$12,405,000 $12,405,000
Total Variable Rate Demand Notes (Cost
$12,405,000) 12,405,000
Repurchase Agreements - 3.1%
State Street Bank: 5.31%, dated 9/30/99, due
10/1/99
(Collateral: $3,915,278, U.S. Treasury
Notes, 5.75%, 11/15/2000)
3,800,000 3,800,000
Total Repurchase Agreements (Cost
$3,800,000) 3,800,000
TOTAL INVESTMENTS (Cost $118,662,048) -
103.7%
128,124,555 Other assets and
liabilities, net - (3.7%) (4,603,991)
Net Assets - 100% $123,520,564
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, Class C and Class I
combined:
Class A: 3,961,602 shares outstanding
$91,703,675 Class B: 370,951
shares outstanding 10,167,603
Class C: 364,413 shares outstanding
8,599,853 Class I: 97,990
shares outstanding 2,508,702
Accumulated net realized gain (loss) on
investments 1,078,224 Net unr
ealized appreciation (depreciation) on
investments 9,462,507
Net Assets $123,520,564
Net Asset Value Per Share
Class A (based on net assets of
$102,507,927) $25.88
Class B (based on net assets of $9,444,965)
$25.46
Class C (based on net assets of $9,021,078)
$24.76
Class I (based on net assets of $2,546,594)
$25.99
*Non-income producing.
See notes to financial statements.
<PAGE>
Statement of Operations
year Ended september 30, 1999
Net Investment Income
Investment Income
Interest income $16,590
Dividend income (net of foreign taxes of
$1,304) 351,796
Total investment income
368,386
Expenses
Investment advisory fee
827,597
Transfer agency fees and expenses
401,125
Distribution Plan expenses:
Class A 350,315
Class B 72,773
Class C 91,074
Directors' fees and expenses
30,906
Administrative fees 230,200
Custodian fees 20,470
Registration fees 68,378
Reports to shareholders
37,398
Professional fees 13,798
Miscellaneous 31,862
Total expenses 2,175,896
Reimbursement from Advisor:
Class I (6,317)
Fees paid indirectly
(188,342)
Net expenses 1,981,237
Net Investment Income (Loss)
(1,612,851)
Realized and Unrealized Gain (Loss) on
Investments
Net realized gain (loss) 1,270,247
Change in unrealized appreciation or
(depreciation) 11,231,435
Net Realized and Unrealized Gain
(Loss) on Investments 12,501,682
Increase (Decrease) in Net Assets
Resulting From Operations
$10,888,831
See notes to financial statements.
<PAGE>
Statements of Changes in Net Assets
Year EndedYear En
ded
September 30,Sept
ember 30,
Increase (Decrease) in Net Assets
1999 1998
Operations
Net investment income (loss) $(1,612,851)
$(870,207)
Net realized gain (loss) 1,270,247
13,379,305
Change in unrealized appreciation
or (depreciation) 11,231,435(12,767
,191)
Increase (Decrease) in Net Assets
Resulting From Operations 10,888,831
(258,093)
Distributions to shareholders from
Net realized gain:
Class A Shares (10,557,812)(5,17
5,390)
Class B Shares (596,624) ----
Class C Shares (970,417)(417,340)
Total distributions (12,124,853)(5,59
2,730)
Capital share transactions:
Shares sold:
Class A Shares 47,089,84548,471,
955
Class B Shares 6,983,5553,722,714
Class C Shares 4,076,5023,607,052
Class I Shares 2,940,985 ----
Reinvestment of distributions:
Class A Shares 10,000,5294,897,289
Class B Shares 532,729 ----
Class C Shares 903,502 391,618
Shares redeemed:
Class A Shares (29,009,734)(28,1
45,595)
Class B Shares (926,168)(21,901)
Class C Shares (2,363,013)(1,080
,594)
Class I Shares (399,031) ----
Total capital share transactions
39,829,701 31,842,538
Total Increase (Decrease) in Net Assets
38,593,679 25,991,715
Net Assets
Beginning of year 84,926,88558,935,
170
End of year $123,520,564
$84,926,885
See notes to financial statements.
<PAGE>
Statements of Changes in Net Assets
Year EndedYear En
ded
September 30,Sept
ember 30,
Capital Share Activity 1999 1998
Shares sold:
Class A Shares 1,692,2971,716,355
Class B Shares 253,225 131,783
Class C Shares 152,204 132,018
Class I Shares 112,142 ----
Reinvestment of distributions:
Class A Shares 371,631 209,017
Class B Shares 19,988 ----
Class C Shares 34,884 17,154
Shares redeemed:
Class A Shares (1,054,042)(985,9
70)
Class B Shares (33,240) (805)
Class C Shares (88,528) (40,384)
Class I Shares (14,152) ----
Total capital share activity 1,446,409
1,179,168
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 operation of each series are
accounted for separately. The Fund offers
four classes of shares of capital stock.
Class A shares are sold with a maximum front-
end sales charge of 4.75%. 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. 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 of purchase. Class B and Class C
shares have higher level of expenses than
Class A shares. Effective March 1, 1999, the
Fund began to offer Class I shares of
capital stock. Class I shares require a
minimum account balance of $1,000,000. Class
I shares have no front-end or deferred sales
charge. Each class has different: (a)
dividend rates, due to 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 and realized and unrealized gains and
losses are allocated to separate classes of
shares based upon the relative net assets of
each class. Expenses arising in connection
with a class are charged directly to that
class. Expenses common to the classes are
allocated to each class in proportion to
their relative net assets.
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 and transfer agent's fees
may be paid indirectly by credits earned on
the Fund's cash on deposit with the bank.
Such a deposit arrangement is an alternative
to overnight investments.
Federal Income Taxes: No provision for
federal income or excise tax is required
since the Fund intends to qualify as a
regulated investment company under the
Internal Revenue Code and to distribute
substantially all of its earnings.
Note B -- Related Party Transactions
Calvert Asset Management Company, Inc. (the
"Advisor") is wholly-owned
by Calvert Group, Ltd. ("Calvert"), which is
indirectly wholly owned by Ameritas Acacia
Mutual Holding Company. The Advisor provides
investment advisory services and pays the
salaries and fees of officers and affiliated
Directors of the Fund. For its services, the
Advisor receives a monthly fee based on an
annual rate of .80% through February
28,1999, and .65%
effective March 1, 1999, based on the Fund's
average daily net assets. Under the terms of
the agreement, $95,858 was payable at year
end. The Fund paid
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,
1999, the performance fee adjustment
decreased the advisory fee by $2,729. The
performance fee was eliminated February 28,
1999.
The Advisor contractually reimbursed the
Fund for expenses of $6,317.
Calvert Administrative Services Company,
Inc., an affiliate of the Advisor,
provides administrative services to the Fund
for an annual fee, payable monthly. Through
February 28, 1999 the fee was .10% of the
average daily
net assets of the Fund. Effective March 1,
1999, Class A, Class B and Class C shares
pay an annual rate of .25% and Class I
shares pay an annual rate of .10%, based on
their average daily net assets. Under the
terms of the agreement, $25,839 was payable
at year end.
<PAGE>
Calvert Distributors, Inc., an affiliate of
the Advisor, is the distributor and
principal underwriter for the Fund.
Distribution Plans, adopted by Class A,
Class B and Class C 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. Class I Shares do
not have Distribution Plan expenses. Under
the terms of the agreement, $45,906 was
payable at year end.
The Distributor received $117,611 as its
portion of the commissions charged on sales
of the Fund's shares.
Calvert Shareholder Services, Inc. ("CSSI"),
an affiliate of the Advisor, acts
as shareholder servicing agent for the Fund.
For its services, CSSI received a fee of
$134,020 for the year ended September 30,
1999. Under the terms of
the agreement, $11,800 was payable at year
end. National Financial Data Services, Inc.,
is the transfer and dividend disbursing
agent.
Each Director of the Fund 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 in the series that
are served.
Note C -- Investment Activity
During the year, purchases and sales of
investments, other than short-term
securities, were $116,232,000 and
$99,295,419, respectively.
The cost of investments owned at September
30, 1999 was substantially the same for
federal income tax and financial reporting
purposes. Net unrealized appreciation
aggregated $9,462,507, of which $14,998,677
related to appreciated securities and
$5,536,170 related to depreciated
securities.
Note D -- Line of Credit
A financing agreement is in place with all
Calvert Group Funds (except for Calvert
Social Investment Fund Managed Index
Portfolio) and State Street Bank and Trust
Company ("the Bank"). Under the agreement,
the Bank is providing an unsecured line of
credit facility, in the aggregate amount of
$50 million ($25 million committed and $25
million uncommitted), to be
accessed by the Funds for temporary or
emergency purposes only.
Borrowings under this facility bear interest
at the overnight Federal Funds Rate plus
.50% per annum. A commitment fee of .10% per
annum will be incurred on the unused portion
of the committed facility which will be
allocated to all participating funds. The
Fund had no loans outstanding pursuant to
this line of credit at September 30, 1999.
Tax Information (Unaudited)
The Fund designates $8,989,384 as 20% rate
capital gain dividends paid during fiscal
year ended September 30, 1999.
<PAGE>
Financial Highlights
Years Ended
September 30,September 30,Sept
ember 30,
Class A Shares 1999 1998 1997
Net asset value, beginning$25.43 $27.21
$22.55
Income from investment operations
Net investment income (loss)(.32) (.25)
(.25)
Net realized and unrealized gain (loss)
4.25 .96 4.91
Total from investment operations
3.93 .71 4.66
Distributions from
Net investment income-- -- --
Net realized gain(3.48) (2.49) --
Total distributions(3.48)(2.49) --
Total increase (decrease) in net asset value
.45 (1.78) 4.66
Net asset value, ending$25.88$25.43 $27.21
Total return* 14.91% 3.37%
20.67%
Ratios to average net assets:
Net investment income (loss)(1.26%)(1.08%)
(1.09%)
Total expenses 1.73% 1.74% 1.91%
Expenses before offsets 1.73% 1.74%
1.91%
Net expenses 1.58% 1.61% 1.85%
Portfolio turnover 88% 77% 126%
Net assets, ending (in thousands) 102,508
$75,068 $54,751
Number of shares outstanding ending (in
thousands)
3,962 2,952 2,012
Periods Ended
September 30,Sept
ember 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% 2.40%(a)
Expenses before offsets 2.16%
2.35%(a)
Net expenses 1.98% 2.06%(a)
Portfolio turnover 114% 95%
Net assets, ending (in thousands)
$39,834 $16,111
Number of shares outstanding, ending (in
thousands)
1,767 750
<PAGE>
Financial Highlights
Periods Ended
September 30,Sept
ember 30,
Class B Shares 1999 1998 #
Net asset value, beginning $25.28
$28.39
Income from investment operations
Net investment income (loss) (.41)
(.16)
Net realized and unrealized gain (loss)
4.07 (2.95)
Total from investment operations
3.66 (3.11)
Distributions from
Net investment income -- --
Net realized gain (3.48) --
Total distributions (3.48) --
Total increase (decrease) in net asset value
.18 (3.11)
Net asset value, ending $25.46 $25.28
Total return* 13.85%
(10.95)%
Ratios to average net assets:
Net investment income (loss) (2.11%)
(2.62%) (a)
Total expenses 2.67% 3.57% (a)
Expenses before offsets 2.67%
3.31% (a)
Net expenses 2.42% 3.01% (a)
Portfolio turnover 88% 77%
Net assets, ending (in thousands)
9,445 $3,311
Number of shares outstanding, ending (in
thousands) 371 131
<PAGE>
Financial Highlights
Years Ended
September 30,September 30,Sept
ember 30,
Class C Shares 1999 1998 1997
Net asset value, beginning$24.63 $26.64
$22.34
Income from investment operations
Net investment income (loss)(.51) (.40)
(.47)
Net realized and unrealized gain (loss)
4.12 .88 4.77
Total from investment operations 3.61
.48 4.30
Distributions from
Net investment income-- -- --
Net realized gain(3.48) (2.49) --
Total distributions(3.48)(2.49) --
Total increase (decrease) in net asset value
.13 (2.01) 4.30
Net asset value, ending$24.76$24.63 $26.64
Total return* 14.02% 2.52%
19.25%
Ratios to average net assets:
Net investment income (loss)(2.04%)(1.98%)
(2.30%)
Total expenses 2.56% 2.75% 3.11%
Expenses before offsets 2.56% 2.75%
3.11%
Net expenses 2.35% 2.50% 3.05%
Portfolio turnover 88% 77% 126%
Net assets, ending (in thousands) 9,021
$6,548 $4,184
Number of shares outstanding, ending (in
thousands)
364 266 157
Periods Ended
September 30,Sept
ember 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% 6.58%(a)
Expenses before offsets 3.42%
3.79%(a)
Net expenses 3.24% 3.50%(a)
Portfolio turnover 114% 95%
Net assets, ending (in thousands)
$3,164 $1,992
Number of shares outstanding, ending (in
thousands) 142 92
<PAGE>
Financial Highlights
Period Ended
September
30,
CLASS I SHARES 1999^^
Net asset value, beginning
$26.18
Income from investment operations
Net investment income (loss)
(.08)
Net realized and unrealized gain (loss)
(.11)
Total from investment operations
(.19)
Total increase (decrease) in net asset value
(.19)
Net asset value, ending $25.99
Total return*
(.73%)
Ratios to average net assets:
Net investment income (loss)
(.50) (a)
Total expenses 1.24% (a)
Expenses before offsets
.85% (a)
Net expenses .80% (a)
Portfolio turnover 88%
Net assets, ending (in thousands)
$2,547
Number of shares outstanding, ending (in
thousands) 98
(a) Annualized
* Total return does not reflect deduction of
any front-end or deferred sales charge.
^ From October 31, 1994 inception.
# From April 1, 1998 inception.
^^ From March 1, 1999 inception.
<PAGE>
Calvert Group and the Year 2000
Three years ago, Calvert Group recruited a
task force to address the Y2K compliance
problem. Headed by our Vice President of
Information Technology, the task force
developed a comprehensive Year 2000
Initiative that addressed all software and
hardware systems that could possibly be
susceptible to year-2000 problems.
Today we can report that we have completed
100 percent of our year-2000 Initiative and
are currently monitoring our systems to
ensure that they will remain compliant.
These are just some of the steps Calvert
Group has taken over the past 36 months:
Inventory. To safeguard our inventory
systems we documented all hardware and sof
tware systems used by Calvert Group.
Assessment. Our system engineers made
an extensive evaluation of the readiness of
each system and its susceptibility to year-
2000 problems.
Remediation. We have modified
software codes, upgraded hardware, improved
data interfaces and applied upgrades.
Testing. We have deployed year-2000
test environments and executed test plans
with dates from 1999 through 2000 and
beyond.
Implementation. We have released our
modified software, deployed upgraded
hardware and coordinated with business
partners where data interfaces have changed.
Vendor Compliance. All significant
third-party vendors, including subadvisors,
have been contacted and reported Y2K
compliance.
Finally, Calvert Group will re-test
continuously through the remainder of
1999 and into 2000 to ensure that operating
platforms, third-party software, and
interfaces to other` systems remain stable
throughout the rollover to the year 2000.
If you have any questions regarding the Year
2000 issue, please send e-mail
to [email protected] or call
1.800.368.2748.
Calvert Group's Web site, www.calvert.com
and our Voice Response Unit (800.368.
2745) will be operational Saturday, January
1, 2000 and completely updated to include
all account activity through year-end 1999.
We encourage you to use either system to
verify the status of your account.
A customer service representative will be
available to assist you Monday, January 3,
2000.
<PAGE>
September 30, 1999
annual
report
Calvert capital
accumulation fund
<PAGE>
Calvert Capital
Accumulation
Fund
To Open an Account
800-368-2748
Yields and Prices
Calvert Information Network
(24 hours, 7 days a week)
800-368-2745
Service for Existing Account
Shareholders: 800-368-2745
Brokers: 800-368-2746
TDD for Hearing Impaired
800-541-1524
Branch Office
4550 Montgomery Avenue
Suite 1000 North
Bethesda, Maryland 20814
Registered, Certified
or Overnight Mail
Calvert Group
c/o NFDS,
330 West 9th Street
Kansas City, MO 64105
Web Site
http://www.calvert.com
Principal Underwriter
Calvert Distributors, Inc.
4550 Montgomery Avenue
Suite 1000 North
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.
Calvert Group's
Family of Funds
Tax-Exempt
Money Market Funds
CTFR Money Market Portfolio
CTFR California Money Market Portfolio
Taxable
Money Market Funds
First Government Money Market Fund
CSIF Money Market Portfolio
Balanced Fund
CSIF Balanced Portfolio
Municipal Funds
CTFR Limited-Term Portfolio
CTFR Long-Term Portfolio
CTFR Vermont Municipal Portfolio
National Muni. Intermediate Portfolio
California Muni. Intermediate Portfolio
Maryland Muni. Intermediate Portfolio
Virginia Muni. Intermediate Portfolio
Taxable Bond Funds
CSIF Bond Portfolio
Income Fund
Equity Funds
CSIF Managed Index Portfolio
CSIF Equity Portfolio
Capital Accumulation Fund
CWV International Equity Fund
New Vision Small Cap Fund
New Africa Fund
<PAGE>
Table
of
Contents
President's Letter
1
Social Update
2
Portfolio
Manager Remarks
3
Report of Independent Accountants
6
Statement
of Net Assets
7
Statement
of Operations
10
Statements
of Changes in
Net Assets
11
Notes to
Financial Statements
13
Financial Highlights
16
Y2K Update
20
Dear Shareholders:
1999 may be characterized as a year of
changing fortunes. We have witnessed a
strong recovery in the markets of Asia and
the Far East, while European markets have
enjoyed mixed blessings. At home, top
performing stocks were again concentrated by
capitalization range and industry group,
with large-capitalization companies,
technology, and internet stocks fueling the
advance. Other categories, such as small cap
stocks and health care stocks, have lagged
these advances.
We have seen a watchful Federal Reserve
raise interest rates in response to
the lessening of global liquidity concerns
and rising price pressures -- the
latter being a downside to the benefit of
low unemployment.
On the whole, the current economic
environment is very positive, but in any
environment -- particularly one marked by
volatility such as today's -- investor
discipline is more important than ever. In
reviewing our recently redesigned Web site,
www.calvert.com, you will see that we now
offer more interactive information tools to
help you make the most informed decisions.
As always, we encourage you to make
decisions based on your financial objectives
and tolerance for risk. You should routinely
review your asset allocation to be sure you
are positioned at a comfortable risk level.
Your financial professional can suggest
strategies that keep you on track to meet
long-term financial objectives.
We appreciate your investment in Calvert
Group funds and look forward to helping you
meet your financial goals.
Sincerely,
Barbara J. Krumsiek
President and CEO
October 27, 1999
<PAGE>
Social
Update
Calvert Expands Its Web Site
Calvert has expanded its Web site, designing
it to be even more user-friendly to you, the
shareholder. It also has a new Web address,
www.calvert.com. Importantly, your Web site
also provides public education about
socially responsible investing. A complete
list of portfolio holdings for the fund is
now posted monthly on the site -- a first in
the mutual fund industry. A new feature was
added to the "Know What You Ownr" service:
Individuals can now determine whether their
mutual funds invest in firearms
manufacturers,
as well as continue to find out whether they
own stock in tobacco companies. Please visit
us at www.calvert.com and learn more about
how Calvert Group can meet your needs.
<PAGE>
Ed Brown
of Brown Capital Management Company
How did the Fund perform against its
benchmark?
During the past year, the Portfolio's Class
A shares returned a gain of 14.91%, under-
performing the S&P Midcap 400 Index by
10.59%. Most of the under-performance
occurred during the third quarter of 1999.
Through the six-month period ended March 31,
1999, the Fund had slightly outperformed the
S&P Midcap 400 by 155 basis points. We
attribute the relative under-performance of
the Fund during the year to two factors.
First, poor stock selection, particularly in
the consumer cyclicals and consumer staples
sectors, where stocks under-performed
already depressed sector performance.
Second, our lack of exposure to the energy
sector, which along with the technology
sector, were the two strongest performing
sectors in the third quarter.
How was Fund performance influenced by
market and economic events?
The past year has truly demonstrated the
resilience of the U.S. stock market. Despite
operating in a rising interest rate
environment, large cap stocks and mid cap
stocks soared. Sustained economic growth in
turn supported solid corporate earnings
growth and higher stock valuations. Such
industry groups as communications equipment,
spurred by changes in the global
telecommunications landscape, and electronic
components and equipment, driven by
increasing use of integrated circuits, led
the S&P Midcap 400 Index to higher levels.
Some of the poorest performing industry
groups in the S&P Midcap 400 Index included
consumer services, health care product
Portfolio Statistics
September 30, 1999
Investment Performance
6 Months12 Months
ended ended
9/30/99 9/30/99
Class A
(5.48%) 14.91%
Class B
(5.81%) 13.85%
Class C
(5.86%) 14.02%
Class I
(5.11%) N/A
S&P Midcap 400
Index TR 4.57%
25.50%
Lipper Mid-Cap
Funds Average 6.85% 32.86%
Ten Largest Stock Holdings
% of Net A
ssets
BMC Software, Inc. 4.84%
Advent Software, Inc. 4.72%
Fastenal Company 3.84%
Dollar General Corp. 3.80%
Compuware Corp. 3.72%
SLM Holding Corp. 3.68%
Paychex, Inc. 3.64%
ADC Telecommunication 3.46%
Legg Mason, Inc. 3.39%
Cardinal Health, Inc. 3.02%
Total
38.11%
Asset Allocation
Stocks
91%
Cash or Cash Equivalents 9%
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.
<PAGE>
Portfolio Statistics
September 30, 1999
Average Annual Total Returns
Class A Sh
ares
One year
9.36%
Since inception 16.41%
(10/31/94)
Class B Sh
ares
One year
8.90%
Since inception (2.42%)
(4/1/98)
Class C Sh
ares
One year
13.93%
Since inception 16.64%
(10/31/94)
Class I Sh
ares
Since inception (.73%)
(3/1/99)
Performance Comparison
Comparison of change in value of $10,000
investment. (Source:Lipper Analytical
Services, Inc.)
INSERT LINE GRAPH HERE
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. The value of
an investment in Class A & C shares is
plotted in the line graph. The value of an
investment in another class of shares would
be different. Past performance is no
guarantee
of future results.
distributors, and health care services. The
ongoing dialogue in Washington regarding
health care reform and patients rights has
introduced a heavy dose
of uncertainty causing investors to avoid
health care stocks. When the dust settles,
selected health care companies' fundamentals
will be better
appreciated in the marketplace and we are
remaining opportunistic investors
in the health care industry.
Have events modified your current strategic
thinking?
Our management strategy is time-tested and
has been effective in producing competitive
long-term investment returns regardless of
the interest rate environment. Brown Capital
Management employs a bottoms-up fundamental
approach to stock selection in conjunction
with a "Growth At A Reasonable Price", or
GARP, philosophy. The Fund's Portfolio is
constructed using our "best ideas," a
strategy we believe implicitly seeks to
maximize return per unit of risk. The
portfolio managers have been actively
researching mid-cap stocks for inclusion in
the portfolio. We have also sought to take
advantage of the valuation discrepancy
between large cap and mid-cap companies by
maintaining the portfolio's bias to mid-cap
companies. We believe that confidence and
conviction, not stubbornness, is the key to
making a sound investment decision,
particularly when markets are highly
volatile.
<PAGE>
What is your general outlook for equity
markets?
We are currently restructuring the portfolio
to maintain an appropriate level
of diversification and also broaden economic
sector exposure. In view of the
attractiveness of mid cap stocks relative to
large cap stocks, in our opinion,
we are structuring the portfolio to maintain
its mid cap bias.
We view the U.S. equity market, defined by
the S&P 500 Index, to be fully valued at a
current price/earnings multiple of 24.4
times our twelve month forward earnings
estimate (6.15% 5-year interest-rate
environment). Inflation and interest rates
currently appear to be in a holding pattern.
At a time when the Fed keeps one eye on the
economy and the other on the stock market,
market analysts are watchful for signs of
wealth effect induced inflation and wage
rate inflation. While we expect the market
to continue to exhibit volatility as it
discounts Fed expectations, earnings
expectations, interest rate expectations,
and global economic expectations, we believe
our investment process over the long term
will produce superior returns regardless of
the environment.
October 27, 1999
Portfolio Statistics
September 30, 1999
Portfolio Characteristics
Capital S&P
Accumulation Midcap 400
Fund index
Number of Stocks 36 400
Median Market
Capitalization ($bil) 4.51 2.71
(by portfolio weight)
Price/Earnings
Ratio 32.45
23.59
Earnings Per Share
Growth 28.37%
22.92%
Yield 0.31%
1.21%
(return on capital investment)
Volatility Measures
Capital S&P
Accumulation Midcap 400
Fund index
Beta1 1.09
0.96
R-Squared2 0.67
0.63
1Measure of volatility compared to the S&P
500 Stock Index (S&P 500) beta of 1. The
higher the beta, the higher the risk and
potential reward.
2Measure of correlation between the Fund's
returns and the overall market's (S&P 500)
returns. An R-Squared of 0 would mean no
correlation; an R-Squared of 1 would mean
total correlation.
Source: Vestek
<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, the statements of changes in net
assets and the financial highlights present
fairly, in all material respects, the
financial position of Calvert Capital
Accumulation Fund, (one of the portfolios
comprising Calvert World Values Fund, Inc.,
hereafter referred to as the "Fund"), at
September 30, 1999, and the results of its
operations, the changes in its net assets
and the financial highlights for each of the
periods presented, in conformity with
accounting principles generally accepted in
the United States. These financial
statements and the 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 auditing standards generally
accepted in the United States 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, 1999 by correspondence with
custodians and brokers, provide
a reasonable basis for the opinion expressed
above.
PricewaterhouseCoopers LLP
Baltimore, Maryland
November 10, 1999
<PAGE>
Statement of Net Assets
September 30, 1999
Equity Securities - 90.6% Shares
Value
Communications Equipment - 3.5%
ADC Telecommunications, Inc. *
102,000 $4,277,625
Computer - Hardware - 1.4%
Network Associates, Inc. * 94,200
1,801,575
Computer - Software and Services - 18.0%
Advent Software, Inc. * 93,700
5,832,825 BMC Software, Inc.
* 83,600 5,982,625 Compuware
Corp. * 176,300 4,594,819
Parametric Technology Corp. * 224,600
3,032,100 Sterling Software,
Inc. * 137,800 2,756,000
22,198,369
Distributors - Food and Health - 3.0%
Cardinal Health, Inc. 68,525 3,734,613
Electrical Equipment - 3.5%
Sanmina Corp. * 39,300 3,040,837
Solectron Corp. * 17,500 1,256,719
4,297,556
Electronics - Semiconductors - 2.3%
Altera Corp. * 65,900 2,858,413
Financial - Diversified - 7.1%
Legg Mason, Inc. 109,300 4,187,556
SLM Holding Corp. 105,700 4,545,100
8,732,656
Health Care - Products and Supplies - 4.4%
Boston Scientific Corp. * 72,400
1,787,375 Guidant Corp.
45,600 2,445,300 St. Jude M
edical, Inc. * 39,400 1,241,100
5,473,775
Health Care - Special Services - 1.0%
ALZA Corp. * 30,100 1,288,656
Household Product - Non Durable - 2.0%
Dial Corp. 96,500 2,460,750
Insurance - Life and Health - 2.3%
AFLAC, Inc. 67,800 2,839,125
Investment Banking / Brokerage - 2.7%
Franklin Resources, Inc. 108,265
3,329,149
Investment Management - 2.6%
T. Rowe Price Associates, Inc.
115,500 3,169,031
<PAGE>
Equity Securities - Cont'd Shares
Value
Leisure - 2.1%
Harley Davidson, Inc. 52,000 $2,603,250
Office Equipment and Supplies - 1.0%
Staples, Inc. * 58,100 1,267,306
Oil and Gas - Equipment - 1.0%
Smith International, Inc. * 28,900
1,170,450
Retail - Building Supplies - 3.8%
Fastenal Co. 100,600 4,740,775
Retail - Discounters - 6.6%
Dollar General Corp. 152,076 4,695,347
Dollar Tree Stores, Inc. * 86,800
3,466,575
8,161,922
Services - Advertising and Marketing - 4.8%
Acxiom Corp. * 141,900 2,789,222
Catalina Marketing Corp. * 37,400
3,171,987
5,961,209
Services - Commercial and Consumer - 4.3%
Cintas Corp. 48,300 2,792,344
G & K Services, Inc., Class A 62,600
2,535,300
5,327,644
Services - Computer Systems - 1.7%
Keane, Inc. * 90,200 2,057,687
Services - Data Processing - 8.7%
Equifax, Inc. 110,200 3,099,375
Fiserv, Inc. * 95,750 3,111,875
Paychex, Inc. 131,750 4,495,969
10,707,219
Services - Employment - 2.8%
Robert Half International, Inc. *
144,200 3,460,800
Total Equity Securities (Cost
$102,457,047) $111,919,555
<PAGE>
Principal
Variable Rate Demand Notes - 10.0%
Amount Value
Wenatchee Valley Clinic, 5.40%, 11/23/24
$12,405,000 $12,405,000
Total Variable Rate Demand Notes (Cost
$12,405,000) 12,405,000
Repurchase Agreements - 3.1%
State Street Bank: 5.31%, dated 9/30/99, due
10/1/99
(Collateral: $3,915,278, U.S. Treasury
Notes, 5.75%, 11/15/2000)
3,800,000 3,800,000
Total Repurchase Agreements (Cost
$3,800,000) 3,800,000
TOTAL INVESTMENTS (Cost $118,662,048) -
103.7%
128,124,555 Other assets and
liabilities, net - (3.7%) (4,603,991)
Net Assets - 100% $123,520,564
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, Class C and Class I
combined:
Class A: 3,961,602 shares outstanding
$91,703,675 Class B: 370,951
shares outstanding 10,167,603
Class C: 364,413 shares outstanding
8,599,853 Class I: 97,990
shares outstanding 2,508,702
Accumulated net realized gain (loss) on
investments 1,078,224 Net unr
ealized appreciation (depreciation) on
investments 9,462,507
Net Assets $123,520,564
Net Asset Value Per Share
Class A (based on net assets of
$102,507,927) $25.88
Class B (based on net assets of $9,444,965)
$25.46
Class C (based on net assets of $9,021,078)
$24.76
Class I (based on net assets of $2,546,594)
$25.99
*Non-income producing.
See notes to financial statements.
<PAGE>
Statement of Operations
year Ended september 30, 1999
Net Investment Income
Investment Income
Interest income $16,590
Dividend income (net of foreign taxes of
$1,304) 351,796
Total investment income
368,386
Expenses
Investment advisory fee
827,597
Transfer agency fees and expenses
401,125
Distribution Plan expenses:
Class A 350,315
Class B 72,773
Class C 91,074
Directors' fees and expenses
30,906
Administrative fees 230,200
Custodian fees 20,470
Registration fees 68,378
Reports to shareholders
37,398
Professional fees 13,798
Miscellaneous 31,862
Total expenses 2,175,896
Reimbursement from Advisor:
Class I (6,317)
Fees paid indirectly
(188,342)
Net expenses 1,981,237
Net Investment Income (Loss)
(1,612,851)
Realized and Unrealized Gain (Loss) on
Investments
Net realized gain (loss) 1,270,247
Change in unrealized appreciation or
(depreciation) 11,231,435
Net Realized and Unrealized Gain
(Loss) on Investments 12,501,682
Increase (Decrease) in Net Assets
Resulting From Operations
$10,888,831
See notes to financial statements.
<PAGE>
Statements of Changes in Net Assets
Year EndedYear En
ded
September 30,Sept
ember 30,
Increase (Decrease) in Net Assets
1999 1998
Operations
Net investment income (loss) $(1,612,851)
$(870,207)
Net realized gain (loss) 1,270,247
13,379,305
Change in unrealized appreciation
or (depreciation) 11,231,435(12,767
,191)
Increase (Decrease) in Net Assets
Resulting From Operations 10,888,831
(258,093)
Distributions to shareholders from
Net realized gain:
Class A Shares (10,557,812)(5,17
5,390)
Class B Shares (596,624) ----
Class C Shares (970,417)(417,340)
Total distributions (12,124,853)(5,59
2,730)
Capital share transactions:
Shares sold:
Class A Shares 47,089,84548,471,
955
Class B Shares 6,983,5553,722,714
Class C Shares 4,076,5023,607,052
Class I Shares 2,940,985 ----
Reinvestment of distributions:
Class A Shares 10,000,5294,897,289
Class B Shares 532,729 ----
Class C Shares 903,502 391,618
Shares redeemed:
Class A Shares (29,009,734)(28,1
45,595)
Class B Shares (926,168)(21,901)
Class C Shares (2,363,013)(1,080
,594)
Class I Shares (399,031) ----
Total capital share transactions
39,829,701 31,842,538
Total Increase (Decrease) in Net Assets
38,593,679 25,991,715
Net Assets
Beginning of year 84,926,88558,935,
170
End of year $123,520,564
$84,926,885
See notes to financial statements.
<PAGE>
Statements of Changes in Net Assets
Year EndedYear En
ded
September 30,Sept
ember 30,
Capital Share Activity 1999 1998
Shares sold:
Class A Shares 1,692,2971,716,355
Class B Shares 253,225 131,783
Class C Shares 152,204 132,018
Class I Shares 112,142 ----
Reinvestment of distributions:
Class A Shares 371,631 209,017
Class B Shares 19,988 ----
Class C Shares 34,884 17,154
Shares redeemed:
Class A Shares (1,054,042)(985,9
70)
Class B Shares (33,240) (805)
Class C Shares (88,528) (40,384)
Class I Shares (14,152) ----
Total capital share activity 1,446,409
1,179,168
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 operation of each series are
accounted for separately. The Fund offers
four classes of shares of capital stock.
Class A shares are sold with a maximum front-
end sales charge of 4.75%. 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. 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 of purchase. Class B and Class C
shares have higher level of expenses than
Class A shares. Effective March 1, 1999, the
Fund began to offer Class I shares of
capital stock. Class I shares require a
minimum account balance of $1,000,000. Class
I shares have no front-end or deferred sales
charge. Each class has different: (a)
dividend rates, due to 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 and realized and unrealized gains and
losses are allocated to separate classes of
shares based upon the relative net assets of
each class. Expenses arising in connection
with a class are charged directly to that
class. Expenses common to the classes are
allocated to each class in proportion to
their relative net assets.
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 and transfer agent's fees
may be paid indirectly by credits earned on
the Fund's cash on deposit with the bank.
Such a deposit arrangement is an alternative
to overnight investments.
Federal Income Taxes: No provision for
federal income or excise tax is required
since the Fund intends to qualify as a
regulated investment company under the
Internal Revenue Code and to distribute
substantially all of its earnings.
Note B -- Related Party Transactions
Calvert Asset Management Company, Inc. (the
"Advisor") is wholly-owned
by Calvert Group, Ltd. ("Calvert"), which is
indirectly wholly owned by Ameritas Acacia
Mutual Holding Company. The Advisor provides
investment advisory services and pays the
salaries and fees of officers and affiliated
Directors of the Fund. For its services, the
Advisor receives a monthly fee based on an
annual rate of .80% through February
28,1999, and .65%
effective March 1, 1999, based on the Fund's
average daily net assets. Under the terms of
the agreement, $95,858 was payable at year
end. The Fund paid
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,
1999, the performance fee adjustment
decreased the advisory fee by $2,729. The
performance fee was eliminated February 28,
1999.
The Advisor contractually reimbursed the
Fund for expenses of $6,317.
Calvert Administrative Services Company,
Inc., an affiliate of the Advisor,
provides administrative services to the Fund
for an annual fee, payable monthly. Through
February 28, 1999 the fee was .10% of the
average daily
net assets of the Fund. Effective March 1,
1999, Class A, Class B and Class C shares
pay an annual rate of .25% and Class I
shares pay an annual rate of .10%, based on
their average daily net assets. Under the
terms of the agreement, $25,839 was payable
at year end.
<PAGE>
Calvert Distributors, Inc., an affiliate of
the Advisor, is the distributor and
principal underwriter for the Fund.
Distribution Plans, adopted by Class A,
Class B and Class C 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. Class I Shares do
not have Distribution Plan expenses. Under
the terms of the agreement, $45,906 was
payable at year end.
The Distributor received $117,611 as its
portion of the commissions charged on sales
of the Fund's shares.
Calvert Shareholder Services, Inc. ("CSSI"),
an affiliate of the Advisor, acts
as shareholder servicing agent for the Fund.
For its services, CSSI received a fee of
$134,020 for the year ended September 30,
1999. Under the terms of
the agreement, $11,800 was payable at year
end. National Financial Data Services, Inc.,
is the transfer and dividend disbursing
agent.
Each Director of the Fund 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 in the series that
are served.
Note C -- Investment Activity
During the year, purchases and sales of
investments, other than short-term
securities, were $116,232,000 and
$99,295,419, respectively.
The cost of investments owned at September
30, 1999 was substantially the same for
federal income tax and financial reporting
purposes. Net unrealized appreciation
aggregated $9,462,507, of which $14,998,677
related to appreciated securities and
$5,536,170 related to depreciated
securities.
Note D -- Line of Credit
A financing agreement is in place with all
Calvert Group Funds (except for Calvert
Social Investment Fund Managed Index
Portfolio) and State Street Bank and Trust
Company ("the Bank"). Under the agreement,
the Bank is providing an unsecured line of
credit facility, in the aggregate amount of
$50 million ($25 million committed and $25
million uncommitted), to be
accessed by the Funds for temporary or
emergency purposes only.
Borrowings under this facility bear interest
at the overnight Federal Funds Rate plus
.50% per annum. A commitment fee of .10% per
annum will be incurred on the unused portion
of the committed facility which will be
allocated to all participating funds. The
Fund had no loans outstanding pursuant to
this line of credit at September 30, 1999.
Tax Information (Unaudited)
The Fund designates $8,989,384 as 20% rate
capital gain dividends paid during fiscal
year ended September 30, 1999.
<PAGE>
Financial Highlights
Years Ended
September 30,September 30,Sept
ember 30,
Class A Shares 1999 1998 1997
Net asset value, beginning$25.43 $27.21
$22.55
Income from investment operations
Net investment income (loss)(.32) (.25)
(.25)
Net realized and unrealized gain (loss)
4.25 .96 4.91
Total from investment operations
3.93 .71 4.66
Distributions from
Net investment income-- -- --
Net realized gain(3.48) (2.49) --
Total distributions(3.48)(2.49) --
Total increase (decrease) in net asset value
.45 (1.78) 4.66
Net asset value, ending$25.88$25.43 $27.21
Total return* 14.91% 3.37%
20.67%
Ratios to average net assets:
Net investment income (loss)(1.26%)(1.08%)
(1.09%)
Total expenses 1.73% 1.74% 1.91%
Expenses before offsets 1.73% 1.74%
1.91%
Net expenses 1.58% 1.61% 1.85%
Portfolio turnover 88% 77% 126%
Net assets, ending (in thousands) 102,508
$75,068 $54,751
Number of shares outstanding ending (in
thousands)
3,962 2,952 2,012
Periods Ended
September 30,Sept
ember 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% 2.40%(a)
Expenses before offsets 2.16%
2.35%(a)
Net expenses 1.98% 2.06%(a)
Portfolio turnover 114% 95%
Net assets, ending (in thousands)
$39,834 $16,111
Number of shares outstanding, ending (in
thousands)
1,767 750
<PAGE>
Financial Highlights
Periods Ended
September 30,Sept
ember 30,
Class B Shares 1999 1998 #
Net asset value, beginning $25.28
$28.39
Income from investment operations
Net investment income (loss) (.41)
(.16)
Net realized and unrealized gain (loss)
4.07 (2.95)
Total from investment operations
3.66 (3.11)
Distributions from
Net investment income -- --
Net realized gain (3.48) --
Total distributions (3.48) --
Total increase (decrease) in net asset value
.18 (3.11)
Net asset value, ending $25.46 $25.28
Total return* 13.85%
(10.95)%
Ratios to average net assets:
Net investment income (loss) (2.11%)
(2.62%) (a)
Total expenses 2.67% 3.57% (a)
Expenses before offsets 2.67%
3.31% (a)
Net expenses 2.42% 3.01% (a)
Portfolio turnover 88% 77%
Net assets, ending (in thousands)
9,445 $3,311
Number of shares outstanding, ending (in
thousands) 371 131
<PAGE>
Financial Highlights
Years Ended
September 30,September 30,Sept
ember 30,
Class C Shares 1999 1998 1997
Net asset value, beginning$24.63 $26.64
$22.34
Income from investment operations
Net investment income (loss)(.51) (.40)
(.47)
Net realized and unrealized gain (loss)
4.12 .88 4.77
Total from investment operations 3.61
.48 4.30
Distributions from
Net investment income-- -- --
Net realized gain(3.48) (2.49) --
Total distributions(3.48)(2.49) --
Total increase (decrease) in net asset value
.13 (2.01) 4.30
Net asset value, ending$24.76$24.63 $26.64
Total return* 14.02% 2.52%
19.25%
Ratios to average net assets:
Net investment income (loss)(2.04%)(1.98%)
(2.30%)
Total expenses 2.56% 2.75% 3.11%
Expenses before offsets 2.56% 2.75%
3.11%
Net expenses 2.35% 2.50% 3.05%
Portfolio turnover 88% 77% 126%
Net assets, ending (in thousands) 9,021
$6,548 $4,184
Number of shares outstanding, ending (in
thousands)
364 266 157
Periods Ended
September 30,Sept
ember 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% 6.58%(a)
Expenses before offsets 3.42%
3.79%(a)
Net expenses 3.24% 3.50%(a)
Portfolio turnover 114% 95%
Net assets, ending (in thousands)
$3,164 $1,992
Number of shares outstanding, ending (in
thousands) 142 92
<PAGE>
Financial Highlights
Period Ended
September
30,
CLASS I SHARES 1999^^
Net asset value, beginning
$26.18
Income from investment operations
Net investment income (loss)
(.08)
Net realized and unrealized gain (loss)
(.11)
Total from investment operations
(.19)
Total increase (decrease) in net asset value
(.19)
Net asset value, ending $25.99
Total return*
(.73%)
Ratios to average net assets:
Net investment income (loss)
(.50) (a)
Total expenses 1.24% (a)
Expenses before offsets
.85% (a)
Net expenses .80% (a)
Portfolio turnover 88%
Net assets, ending (in thousands)
$2,547
Number of shares outstanding, ending (in
thousands) 98
(a) Annualized
* Total return does not reflect deduction of
any front-end or deferred sales charge.
^ From October 31, 1994 inception.
# From April 1, 1998 inception.
^^ From March 1, 1999 inception.
<PAGE>
Calvert Group and the Year 2000
Three years ago, Calvert Group recruited a
task force to address the Y2K compliance
problem. Headed by our Vice President of
Information Technology, the task force
developed a comprehensive Year 2000
Initiative that addressed all software and
hardware systems that could possibly be
susceptible to year-2000 problems.
Today we can report that we have completed
100 percent of our year-2000 Initiative and
are currently monitoring our systems to
ensure that they will remain compliant.
These are just some of the steps Calvert
Group has taken over the past 36 months:
Inventory. To safeguard our inventory
systems we documented all hardware and sof
tware systems used by Calvert Group.
Assessment. Our system engineers made
an extensive evaluation of the readiness of
each system and its susceptibility to year-
2000 problems.
Remediation. We have modified
software codes, upgraded hardware, improved
data interfaces and applied upgrades.
Testing. We have deployed year-2000
test environments and executed test plans
with dates from 1999 through 2000 and
beyond.
Implementation. We have released our
modified software, deployed upgraded
hardware and coordinated with business
partners where data interfaces have changed.
Vendor Compliance. All significant
third-party vendors, including subadvisors,
have been contacted and reported Y2K
compliance.
Finally, Calvert Group will re-test
continuously through the remainder of
1999 and into 2000 to ensure that operating
platforms, third-party software, and
interfaces to other` systems remain stable
throughout the rollover to the year 2000.
If you have any questions regarding the Year
2000 issue, please send e-mail
to [email protected] or call
1.800.368.2748.
Calvert Group's Web site, www.calvert.com
and our Voice Response Unit (800.368.
2745) will be operational Saturday, January
1, 2000 and completely updated to include
all account activity through year-end 1999.
We encourage you to use either system to
verify the status of your account.
A customer service representative will be
available to assist you Monday, January 3,
2000.
<PAGE>
