September 30, 2000
annual
report
Calvert capital
accumulation fund
<PAGE>
Table
of
Contents
President's Letter
1
Social Update
2
Portfolio
Manager Remarks
3
Report of Independent Public 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
17
Dear Shareholders:
While near-term volatility in equity and bond markets has set a tone of
challenge for investors and fund managers this past year, caution and discipline
remain a keynote of our manager's investment strategies. We are confident that
these will bring their own reward in the long term.
The state of the US economy seems to indicate that we have reason to be
optimistic despite recently falling market indices. For the time being, the
specter of inflation appears to be nothing more than that, and the underlying
economic fundamentals are solid. Indeed, the Fed, which left rates unchanged at
its last meeting, believes that inflation remains under control. Somewhat slower
economic growth will continue to keep prices in check - and there have been
indications of cooling in most traditional sectors of the economy. Therefore,
economic growth is expected to slow in the coming months and year.
Growth in the US economy coupled with price stability will continue to influence
the price and yield of Government bonds. Rising oil prices, temporarily curbed
by the recent decision to release 30m barrels from our Strategic Petroleum
Reserve, would almost certainly push up bond yields.
Also, the decision made by the US, Europe, and Japan to shore up the Euro could
have domestic consequences. While a weaker dollar could mean stronger balance
sheets for multinational companies, the stream of money from Europe into the US
economy could be reversed, adversely affecting equity and corporate bond prices.
Time will tell how events will play out. For the reasonable investor, discipline
and the need to make informed decisions are as important as ever before. As
always, we encourage you to make decisions based on your financial obligations
and tolerance for risk. Your financial professional can suggest strategies that
can keep you on track to meet your objectives.
We appreciate your investment in Calvert Group funds and look forward to working
with you to achieve your financial goals.
Sincerely,
Barbara J. Krumsiek
President and CEO
October 30, 2000
<PAGE>
Social
Update
The Calvert Social Index
As a leader in socially responsible investing we have for some time recognized
the market's need for a passively constructed Index of social companies. In
May, we created the Calvert Social Index , a broad-based, rigorously constructed
benchmark for measuring the performance of the largest of those U.S.-based
companies that meet our social criteria. Now, the real time performance of the
Index is being distributed through the Chicago Board of Trade and is available
through news agencies, financial services companies and brokerage firms.
The Calvert Social Index scrutinizes each of the 1,000 largest companies in the
U.S., representing stocks listed on the NYSE and NASDAQ-AMEX. The Index includes
companies that stand out positively in their environmental policies, actively
hire and promote minorities and women, provide a safe and healthy workplace, and
produce safe and healthy products. By giving the public a closer look at the
social practices of the Index companies, we are providing guidelines and helping
companies strive toward a higher level of social responsibility. To obtain
details on the Calvert Social Index go to www.calvert.com.
www.calvert.com Chosen Among the "Top 20 Best in Mutual Funds" Industry
Our web site has been chosen as one of this year's "Top 20 Web Sites Among
Mutual Funds," according to a study conducted by kasina, LLC, a New York
e-business consulting firm. The study evaluated over 421 mutual fund company Web
sites, noting that "[t]he high point of [Calvert's] site is the Know What You
Own search feature, which allows investors to see the top holdings of a
selected fund and to see their characteristics in terms of ethics and good
corporate citizenship. This is a unique feature not found on any other Web
site." Other notable interactive features that placed us among the top include
the Advisor Finder Service, the Socially Responsible Company Profiles in the
Calvert Social Index, and a SRI Timeline.
Proxy Analysis and Voting Intentions
We will make public our proxy analysis and voting intentions for Social Index
companies. We will review each Index company's individual proxy and publish the
Index's position on issues relating to its social criteria, along with the
rationale, on our Web site, www.calvert.com, beginning in the 2001 proxy season.
<PAGE>
Ed Brown
of Brown Capital Management Company
How did the Fund perform against its benchmark?
For the year ended September 30, 2000, the Calvert Capital Accumulation Fund's
Class A shares returned 42.91%, slightly underperforming the S&P Midcap 400
Index at 43.22%. The modest under-performance can be attributed to the
Portfolio's composition in which we were underweighted in the Utilities and
Energy sectors. Our bottoms-up process, which seeks to identify companies with
solid prospective revenue and earnings growth, led to the underweight position
in those two sectors.
How was Fund performance influenced by market and economic events?
The U.S. stock market recorded an above average annual total return,
particularly in mid caps. The economic backdrop was generally favorable,
highlighted by very strong economic growth and a decline in the five year
Treasury yield, which occurred after rates peaked in January 2000. Sectors
responsible for fueling the significant increase in mid cap stocks included
Technology, Health Care, Utilities, and Energy.
When discussing market concerns, investment strategists seem to point to what is
widely known now as the four E's - the election, energy, Euro, and earnings.
With respect to the election, we believe that the outcome and its impact on the
markets, while interesting, is largely psychological. As long as monetary
policy remains focused on sustaining growth and controlling inflation,
Portfolio Statistics
September 30, 2000
Investment Performance
6 Months 12 Months
ended ended
9/30/00 9/30/00
Class A 16.40% 42.91%
Class B 15.99% 41.84%
Class C 16.02% 41.91%
Class I 16.84% 44.25%
S&P Midcap 400
Index TR 8.45% 43.22%
Lipper Mid-Cap Growth
Funds Average (3.43%) 63.86%
Ten Largest Stock Holdings
% of Net Assets
Guidant Corp. 3.2%
USA Education, Inc. 3.2%
AFLAC, Inc. 2.9%
Biomet, Inc. 2.9%
Kohls Corp. 2.8%
Catalina Marketing Corp. 2.8%
Altera Corp. 2.8%
Sanmina Corp. 2.7%
Health Management
Associates, Inc. 2.7%
BISYS Group, Inc. 2.7%
Total 28.7%
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.
<PAGE>
market prospects should remain sanguine. The other E's, however, are much more
meaningful.
Energy prices, as measured by crude oil prices per barrel, increased to almost
$38 per barrel, whereas just two years ago, crude oil was only $11 per barrel.
Add to that the fuel consumption and transportation costs incurred by other
companies that sell goods and services, and fuel costs understandably rose
significantly. Sustained increases in energy prices, therefore, could clearly
have a negative impact on our economy.
When the Euro began trading in January 1999, its value approached $1.20. Most
recently, trading at about $0.87, the Euro's weakness has been a part of the
reason why the final E, earnings, seems to be of greater concern to the
marketplace. When large multinationals consolidate their European subsidiaries,
the weaker Euro means less U.S. dollar-denominated revenue and earnings. For
European consumers, it means less purchasing power for U.S.-exported goods and
services.
Portfolio Statistics
September 30, 2000
Average Annual Total Returns
Class A Shares
One year 36.14%
Five year 16.02%
Since inception 20.51%
(10/31/94)
Class B Shares
One year 36.84%
Since inception 14.31%
(4/1/98)
Class C Shares
One year 40.91%
Five year 16.05%
Since inception 20.57%
(10/31/94)
Class I Shares
One year 44.25%
Since inception 25.74%
(3/1/99)
Performance Comparison
Comparison of change in value of $10,000 investment. (Source: Lipper Analytical
Services, Inc.)
[INSERT LINE GRAPH HERE]
Total returns assume reinvestment of dividends and reflect the deduction of the
Fund's maximum front-end or deferred sales charge. No sales charge has been
applied to the index used for comparison. The value of an investment in Class A
& C shares is plotted in the line graph. The value of an investment in another
class of shares would be different. Past performance is no guarantee of future
results.
<PAGE>
What is your general outlook for equity markets?
In spite of these four E's, we still expect this economic expansion, now the
longest sustained expansion in the last 100 years, to continue. Should the
expansion hold, the U.S. will be well into its tenth year of uninterrupted
economic growth. We expect the stock market to continue its growth-only at more
modest return levels when compared to the past several years. A 10-12% return
in stocks and a 5-6% return in bonds, in line with historical averages, is
realistic.
October 30, 2000
Portfolio Statistics
September 30, 2000
Portfolio Characteristics
Capital S&P
Accumulation Midcap 400
Fund index
Number of Stocks 46 400
Median Market
Capitalization ($bil) 7.4 3.3
(by portfolio weight)
Price/Earnings
Ratio 35.85 26.60
Earnings Per Share
Growth 25.15% 19.56%
Yield 0.28% 1.00%
(return on capital investment)
Volatility Measures
Capital S&P
Accumulation Midcap 400
Fund index
Beta1 0.93 0.75
R-Squared2 0.60 0.49
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 Public Accountants
To the Board of Directors of Calvert World Values Fund, Inc. and Shareholders of
Calvert Capital Accumulation Fund:
We have audited the accompanying statement of net assets of Calvert Capital
Accumulation Fund, (one of the portfolios comprising The Calvert World Values
Fund, hereafter referred to as the "Fund"), as of September 30, 2000, and the
related statement of operations, the statement of changes in net assets, and the
financial highlights for the year then ended. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audit. The statement of changes in net assets
for the year ended September 30, 1999, and the financial highlights for each of
the four years in the period ended September 30, 1999 of the Fund, were audited
by other auditors, whose report dated November 10, 1999, expressed an
unqualified opinion on those statements.
We conducted our audit in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
confirmation of securities owned as of September 30, 2000, by correspondence
with the custodian, the broker, and application of alternative procedures with
respect to unsettled securities transactions. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Calvert Capital Accumulation Fund as of September 30, 2000, the results of its
operations, the changes in its net assets, and the financial highlights for the
year then ended, in conformity with accounting principles generally accepted in
the United States.
ARTHUR ANDERSEN LLP
Philadelphia, Pennsylvania
November 15, 2000
<PAGE>
Statement of Net Assets
September 30, 2000
Equity Securities - 97.0% Shares Value
Air Freight - 1.2%
Fritz Co.'s, Inc.* 172,700 $2,072,400
Communications Equipment - 1.7%
ADC Telecommunications, Inc.* 110,200 2,963,347
Computers - Software & Services - 10.1%
Advent Software, Inc.* 39,200 2,739,100
Amdocs, Ltd.* 34,900 2,176,887
Compuware Corp.* 394,300 3,302,263
Network Associates, Inc.* 121,200 2,742,150
Rational Software Corp.* 56,800 3,940,500
Transaction Systems Architects, Inc.* 156,400 2,541,500
17,442,400
Distributors - Food & Health - 2.6%
Cardinal Health, Inc. 51,325 4,526,223
Electrical Equipment - 7.1%
Flextronics International Ltd.* 39,700 3,260,362
Sanmina Corp.* 50,200 4,699,975
Solectron Corp.* 93,300 4,303,463
12,263,800
Electronics - Semiconductors - 9.4%
Altera Corp.* 100,000 4,775,000
Atmel Corp.* 199,300 3,026,869
Conexant Systems, Inc.* 67,229 2,815,214
Vitesse Semiconductor Corp.* 36,500 3,246,219
Xilinx, Inc.* 26,500 2,269,062
16,132,364
Financial - Diversified - 3.2%
USA Education, Inc. 113,900 5,488,556
Healthcare - Hospital Management - 2.7%
Health Management Associates, Inc.* 224,600 4,674,488
Healthcare - Medical Products & Supplies - 7.5%
ALZA Corp.* 28,200 2,439,300
Biomet, Inc. 140,500 4,917,500
Guidant Corp.* 78,236 5,530,307
12,887,107
Healthcare - Special Services - 3.8%
Covance, Inc.* 236,900 1,939,619
Omnicare, Inc. 167,500 2,700,937
Quintiles Transnational Corp.* 122,100 1,945,969
6,586,525
<PAGE>
Equity Securities - Cont'd Shares Value
Housewares - 2.4%
Newell Rubbermaid, Inc. 181,400 $4,138,188
Insurance - Life & Health - 2.9%
AFLAC, Inc. 79,000 5,060,938
Investment Banking/Brokers - 2.5%
Legg Mason, Inc. 74,400 4,324,500
Investment Management - 4.8%
Franklin Resources, Inc. 89,965 3,997,145
T. Rowe Price Associates 88,900 4,172,744
8,169,889
Leisure Time Products - 1.7%
Harley-Davidson, Inc. 61,700 2,953,887
Manufacturing - Specialized - 2.3%
Jabil Circuit, Inc.* 68,900 3,910,075
Oil & Gas - Drilling & Equipment - 2.0%
Smith International, Inc.* 42,700 3,482,719
Power Producers - Independent - 1.8%
AES Corp.* 44,400 3,041,400
Retail - Building Supplies - 2.4%
Fastenal Co. 70,100 4,039,512
Retail - Department Stores - 2.8%
Kohls Corp.* 84,500 4,874,594
Retail - Discounters - 4.3%
Dollar General Corp. 200,595 3,359,966
Dollar Tree Stores, Inc.* 99,050 4,017,716
7,377,682
Retail - Specialty - 1.0%
Staples, Inc.* 116,500 1,652,844
Services - Advertising & Marketing - 4.9%
Acxiom Corp.* 112,300 3,565,525
Catalina Marketing Corp.* 128,000 4,816,000
8,381,525
Services - Data Process - 7.3%
BISYS Group, Inc.* 58,700 4,538,244
Fiserv, Inc.* 62,150 3,721,231
Paychex, Inc. 80,875 4,245,937
12,505,412
Services - Employment - 2.3%
Robert Half International, Inc.* 114,100 3,957,844
<PAGE>
Equity Securities - Cont'd Shares Value
Telephone - 2.3%
CenturyTel, Inc. 144,000 $3,924,000
Total Equity Securities (Cost $131,250,644) 166,832,219
Principal
Repurchase Agreements - 5.0% Amount
State Street, 6.50%, dated 9/29/00, due 10/2/00
(Collateral: $8,740,000 FHLB 6.75%, 2/1/02) $8,600,000 8,600,000
Total Repurchase Agreements (Cost $8,600,000) 8,600,000
Variable Rate Demand Notes - 0.6%
R.M. Greene, Inc., 6.60%, 5/1/30 1,000,000 1,000,000
Total Variable Rate Demand Notes (Cost $1,000,000) 1,000,000
Total Investments (Cost $140,850,644) - 102.6% 176,432,219
Other assets and liabilities, net - (2.6%) (4,480,382)
Net Assets - 100% $171,951,837
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: 3,898,102 shares outstanding $90,933,593
Class B: 463,378 shares outstanding 12,967,253
Class C: 399,355 shares outstanding 9,620,787
Class I: 2,943 shares outstanding (946,859)
Accumulated net realized gain (loss) on investments 23,795,488
Net unrealized appreciation (depreciation) on investments 35,581,575
Net Assets $171,951,837
Net Asset Value Per Share
Class A (based on net assets of $141,638,873) $36.34
Class B (based on net assets of $16,435,106) $35.47
Class C (based on net assets of $13,769,406) $34.48
Class I (based on net assets of $108,452) $36.84
* Non income producing.
Abbreviations:
FHLB: Federal Home Loan Bank
See notes to financial statements.
<PAGE>
Statement of Operations
Year Ended September 30, 2000
Net Investment Income
Investment Income:
Dividend income $469,315
Interest income 132,561
Total investment income 601,876
Expenses:
Investment advisory fee 933,501
Transfer agency fees and expenses 459,546
Distribution Plan expenses:
Class A 410,308
Class B 124,175
Class C 110,011
Directors' fees and expenses 22,575
Administrative fees 354,590
Custodian fees 28,406
Registration fees 39,906
Reports to shareholders 54,953
Professional fees 18,663
Miscellaneous 16,265
Total expenses 2,572,899
Reimbursement from Advisor:
Class I (10,156)
Fees paid indirectly (191,926)
Net expenses 2,370,817
Net Investment Income (Loss) (1,768,941)
Realized and Unrealized Gain (Loss) on Investments
Net realized gain (loss) 26,901,810
Change in unrealized appreciation or (depreciation) 26,119,068
Net Realized and Unrealized Gain
(Loss) on Investments 53,020,878
Increase (Decrease) in Net Assets
Resulting From Operations $51,251,937
See notes to financial statements.
<PAGE>
Statements of Changes in Net Assets
Year Ended Year Ended
September 30, September 30,
Increase (Decrease) in Net Assets 2000 1999
Operations:
Net investment income (loss) ($1,768,941) ($1,612,851)
Net realized gain (loss) 26,901,810 1,270,247
Change in unrealized appreciation
or (depreciation) 26,119,068 11,231,435
Increase (Decrease) in Net Assets
Resulting From Operations 51,251,937 10,888,831
Distributions to shareholders from
Net realized gain:
Class A Shares (1,975,944) (10,557,812)
Class B Shares (198,177) (596,624)
Class C Shares (189,403) (970,417)
Class I Shares (52,081) -
Total distributions (2,415,605) (12,124,853)
Capital share transactions:
Shares sold:
Class A Shares 27,659,971 47,089,845
Class B Shares 4,313,448 6,983,555
Class C Shares 3,447,525 4,076,502
Class I Shares 723,771 2,940,985
Reinvestment of distributions:
Class A Shares 1,871,628 10,000,529
Class B Shares 180,280 532,729
Class C Shares 166,227 903,502
Class I Shares 52,080 -
Shares redeemed:
Class A Shares (30,374,363) (29,009,734)
Class B Shares (1,664,171) (926,168)
Class C Shares (2,524,971) (2,363,013)
Class I Shares (4,256,484) (399,031)
Total capital share transactions (405,059) 39,829,701
Total Increase (Decrease) in Net Assets 48,431,273 38,593,679
Net Assets
Beginning of year 123,520,564 84,926,885
End of year $171,951,837 $123,520,564
See notes to financial statements.
<PAGE>
Statements of Changes in Net Assets
Year Ended Year Ended
September 30, September 30,
Capital Share Activity 2000 1999
Shares sold:
Class A Shares 893,265 1,692,297
Class B Shares 143,638 253,225
Class C Shares 118,272 152,204
Class I Shares 23,299 112,142
Reinvestment of distributions:
Class A Shares 65,145 371,631
Class B Shares 6,392 19,988
Class C Shares 6,062 34,884
Class I Shares 1,801 -
Shares redeemed:
Class A Shares (1,021,910) (1,054,042)
Class B Shares (57,603) (33,240)
Class C Shares (89,392) (88,528)
Class I Shares (120,147) (14,152)
Total capital share activity (31,178) 1,446,409
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 is 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 levels of expenses
than Class A shares. 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 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 Fund may enter into futures contracts, agreeing to buy
or sell a financial instrument for a set price at a future date. The Fund
maintains securities with a value equal to its obligation under each contract.
Initial margin deposits of either cash or securities are made upon entering into
futures contracts; thereafter, variation margin payments are made or received
daily reflecting the change in market value. Unrealized or realized gains and
losses are recognized based on the change in market value. Risks of futures
contracts arise from the possible illiquidity of the futures markets and the
movement in the value of the investment or in interest rates.
Security Transactions and Investment Income: Security transactions are
accounted for on trade date. Realized gains and losses are recorded on an
identified cost basis. 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
<PAGE>
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 taxable
earnings.
Note B - Related Party Transactions
Calvert Asset Management Company, Inc. (the "Advisor") is wholly-owned by
Calvert Group, Ltd. ("Calvert"), which is indirectly wholly owned by Ameritas
Acacia Mutual Holding Company. The Advisor provides investment advisory services
and pays the salaries and fees of officers and affiliated Directors of the Fund.
For its services, the Advisor receives a monthly fee based on an annual rate of
.65% of the Fund's average daily net assets. Under the terms of the agreement,
$123,975 was payable at year end.
The Advisor contractually reimbursed the Fund for expenses of $10,156 for the
year ended September 30, 2000.
Calvert Administrative Services Company, an affiliate of the Advisor, provides
administrative services to the Fund for an annual fee, payable monthly of .25%
for Class A, Class B and Class C and .10% for Class I shares based on their
average daily net assets. Under the terms of the agreement, $35,195 was payable
at year end.
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, $64,813 was payable at
year end.
<PAGE>
The Distributor received $73,252 as its portion of the commissions charged on
sales of the Fund's shares for the year ended September 30, 2000.
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 $135,990 for the year ended September 30, 2000. Under the terms of the
agreement, $10,684 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.
Directors' 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 $161,005,869 and $159,114,084, respectively.
The cost of investments owned at September 30, 2000 was substantially the same
for federal income tax and financial reporting purposes. Net unrealized
appreciation aggregated $35,581,575, of which $40,516,784 related to
appreciated securities and $4,935,209 related to depreciated securities.
Note D - Line of Credit
A financing agreement is in place with all Calvert Group Funds (except for the
Calvert Social Investment Fund Managed Index, CVS Ameritas Index 500 and Calvert
Social Index Fund) 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, 2000.
Change in Independent Auditor
In September 2000, PricewaterhouseCoopers LLP (PricewaterhouseCoopers) resigned
in the normal course of business as independent auditor for the Calvert Group
Funds. Arthur Andersen LLP (Arthur Andersen) was selected as the Fund's
independent auditor. The Funds' selection of Arthur Andersen as its independent
auditor was recommended by the Fund's audit committee and was approved by the
Fund's Board of Directors.
The reports on the financial statements audited by PricewaterhouseCoopers for
the years ended September 30, 1999 and prior for the Funds did not contain an
adverse opinion or a disclaimer of opinion, and were not qualified or modified
as to uncertainty, audit scope or accounting principles. There were no
disagreements between the Funds and PricewaterhouseCoopers on any matter of
accounting principles or practices, financial
<PAGE>
statement disclosure, or auditing scope or procedures, which disagreements, if
not resolved to the satisfaction of PricewaterhouseCoopers would have caused it
to make reference to the subject matter of the disagreements in connection with
its reports on the financial statements of such years.
Tax Information (Unaudited)
The Fund designates $2,415,605 as 20% capital gain dividends paid during the
taxable year ended September 30, 2000.
<PAGE>
Financial Highlights
Years Ended
September 30, September 30,
Class A Shares 2000 1999
Net asset value, beginning $25.88 $25.43
Income from investment operations
Net investment income (loss) (.32) (.32)
Net realized and unrealized gain (loss) 11.29 4.25
Total from investment operations 10.97 3.93
Distributions from
Net realized gain (0.51) (3.48)
Total distributions (0.51) (3.48)
Total increase (decrease) in net asset value 10.46 .45
Net asset value, ending $36.34 $25.88
Total return* 42.91% 14.91%
Ratios to average net assets:
Net investment income (loss) (1.12%) (1.26%)
Total expenses 1.67% 1.73%
Expenses before offsets 1.67% 1.73%
Net expenses 1.54% 1.58%
Portfolio turnover 116% 88%
Net assets, ending (in thousands) $141,639 $102,508
Years Ended
September 30, September 30, September 30,
Class A Shares 1998 1997 1996
Net asset value, beginning $27.21 $22.55 $21.48
Income from investment operations
Net investment income (loss) (.25) (.25) (.24)
Net realized and unrealized gain (loss)
.96 4.91 1.88
Total from investment operations .71 4.66 1.64
Distributions from
Net investment income (2.49) - -
Net realized gain - - (.57)
Total distributions (2.49) - (.57)
Total increase (decrease) in net asset value
(1.78) 4.66 1.07
Net asset value, ending $25.43 $27.21 $22.55
Total return* 3.37% 20.67% 7.92%
Ratios to average net assets:
Net investment income (loss) (1.08%) (1.09%) (1.56%)
Total expenses 1.74% 1.91% 2.16%
Expenses before offsets 1.74% 1.91% 2.16%
Net expenses 1.61% 1.85% 1.98%
Portfolio turnover 77% 126% 114%
Net assets, ending (in thousands) $75,068 $54,751 $39,834
<PAGE>
Financial Highlights
Periods Ended
September 30, September 30, September 30,
Class B Shares 2000 1999 1998 #
Net asset value, beginning $25.46 $25.28 $28.39
Income from investment operations
Net investment income (loss) (.52) (.41) (.16)
Net realized and unrealized gain (loss)
11.04 4.07 (2.95)
Total from investment operations 10.52 3.66 (3.11)
Distributions from
Net realized gain (.51) (3.48) -
Total distributions (.51) (3.48) -
Total increase (decrease) in net asset value
10.01 .18 (3.11)
Net asset value, ending $35.47 $25.46 $25.28
Total return* 41.84% 13.85% (10.95)%
Ratios to average net assets:
Net investment income (loss) (1.88%) (2.11%) (2.62%) (a)
Total expenses 2.49% 2.67% 3.57% (a)
Expenses before offsets 2.49% 2.67% 3.31% (a)
Net expenses 2.30% 2.42% 3.01% (a)
Portfolio turnover 116% 88% 77%
Net assets, ending (in thousands) $16,435 $9,445 $3,311
<PAGE>
Financial Highlights
Years Ended
September 30, September 30,
Class C Shares 2000 1999
Net asset value, beginning $24.76 $24.63
Income from investment operations
Net investment income (loss) (.50) (.51)
Net realized and unrealized gain (loss) 10.73 4.12
Total from investment operations 10.23 3.61
Distributions from
Net realized gain (.51) (3.48)
Total distributions (.51) (3.48)
Total increase (decrease) in net asset value 9.72 .13
Net asset value, ending $34.48 $24.76
Total return* 41.91% 14.02%
Ratios to average net assets:
Net investment income (loss) (1.87%) (2.04%)
Total expenses 2.47% 2.56%
Expenses before offsets 2.47% 2.56%
Net expenses 2.29% 2.35%
Portfolio turnover 116% 88%
Net assets, ending (in thousands) $13,769 $9,021
Years Ended
September 30, September 30, September 30,
Class C Shares 1998 1997 1996
Net asset value, beginning $26.64 $22.34 $21.55
Income from investment operations
Net investment income (loss) (.40) (.47) (.55)
Net realized and unrealized gain (loss)
.88 4.77 1.91
Total from investment operations .48 4.30 1.36
Distributions from
Net investment income - - -
Net realized gain (2.49) - (.57)
Total distributions (2.49) - (.57)
Total increase (decrease) in net asset value
(2.01) 4.30 .79
Net asset value, ending $24.63 $26.64 $22.34
Total return* 2.52% 19.25% 6.56%
Ratios to average net assets:
Net investment income (loss) (1.98%) (2.30%) (2.82%)
Total expenses 2.75% 3.11% 3.42%
Expenses before offsets 2.75% 3.11% 3.42%
Net expenses 2.50% 3.05% 3.24%
Portfolio turnover 77% 126% 114%
Net assets, ending (in thousands) $6,548 $4,184 $3,164
<PAGE>
Financial Highlights
Periods Ended
September 30, September 30,
CLASS I SHARES 2000 1999^
Net asset value, beginning $25.99 $26.18
Income from investment operations
Net investment income (loss) (.12) (.08)
Net realized and unrealized gain (loss) 11.48 (.11)
Total from investment operations 11.36 (.19)
Distributions from
Net realized gain (.51) -
Total distributions (.51) -
Total increase (decrease) in net asset value 10.85 (.19)
Net asset value, ending $36.84 $25.99
Total return* 44.25% (.73%)
Ratios to average net assets:
Net investment income (loss) (0.39%) (.50%) (a)
Total expenses 1.20% 1.24% (a)
Expenses before offsets .86% .85% (a)
Net expenses .80% .80% (a)
Portfolio turnover 116% 88%
Net assets, ending (in thousands) $108 $2,547
(a) Annualized
* Total return does not reflect deduction of any front-end or deferred sales
charge.
# From April 1, 1998 inception.
^ From March 1, 1999 inception.
<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
Taxable Bond Funds
CSIF Bond Portfolio
Income Fund
Equity Funds
CSIF Managed Index Portfolio
CSIF Equity Portfolio
CSIF Technology Portfolio
Calvert Large Cap Growth Fund
Capital Accumulation Fund
CWV International Equity Fund
New Vision Small Cap Fund
New Africa Fund
Calvert Social Index Fund
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