MARCH 31, 2000
SEMI-ANNUAL
REPORT
CALVERT CAPITAL
ACCUMULATION FUND
<PAGE>
TABLE
OF
CONTENTS
PRESIDENT'S LETTER
1
SOCIAL UPDATE
2
PORTFOLIO
MANAGER REMARKS
3
STATEMENT
OF NET ASSETS
6
STATEMENT
OF OPERATIONS
9
STATEMENTS
OF CHANGES IN
NET ASSETS
10
NOTES TO
FINANCIAL STATEMENTS
12
FINANCIAL HIGHLIGHTS
15
DEAR SHAREHOLDERS:
IN A QUARTER WHERE FEARS OVER A DISRUPTING Y2K BUG SUBSIDED JUST DAYS INTO THE
START OF THE NEW YEAR, THE SPECTER OF INCREASED MARKET VOLATILITY TOOK EVEN
GREATER SUBSTANCE - WITH LARGE UPWARD SWINGS ONE DAY - ESPECIALLY IN THE
TECHNOLOGY-LADEN NASDAQ - FOLLOWED BY DROPS OF 100 (OR EVEN 487) POINTS, THE
NEXT.
AT THE SAME TIME THE FEDERAL RESERVE, FRETTING OVER AN OVERHEATING ECONOMY,
CONTINUED TO PUSH UP SHORT-TERM INTEREST RATES.
AS IN PAST QUARTERS, YOU COULD PICK THE TOP PERFORMERS BY CAPITALIZATION RANGE
AND INDUSTRY GROUP. JUST AS TECHNOLOGY AND BIOTECH PLAYS FUELED MUCH OF THE
ADVANCE EARLIER IN THE QUARTER, THE INITIAL MICROSOFT JUDGMENT, ALONG WITH WORDS
OF WARNING FROM PRESIDENT BILL CLINTON AND BRITISH PRIME MINISTER TONY BLAIR
OVER GENETIC RESEARCH PROPERTY RIGHTS, SIGNALED A SHARP DECLINE IN BOTH "NEW
ECONOMY" SECTORS. AND ALL THIS DURING A QUARTER WHEN, ON MARCH 16, THE DOW JONES
INDUSTRIAL AVERAGE POSTED A 499-POINT GAIN!
MARKET VOLATILITY - IF NOT DOWNRIGHT TURMOIL - IS, WE BELIEVE, A CURRENT
CONDITION, NOT A CONSTANT. STILL, THIS CHALLENGING ENVIRONMENT UNDERSCORES THE
VALUE OF PROFESSIONAL MONEY MANAGEMENT. REMEMBER TO MAKE DECISIONS BASED ON
YOUR FINANCIAL OBJECTIVES AND TOLERANCE FOR RISK. REEVALUATE YOUR ASSET
ALLOCATION TO BE SURE YOU ARE POSITIONED AT A COMFORTABLE LEVEL. IF YOU THINK
CHANGE IS IN ORDER, YOUR FINANCIAL PROFESSIONAL CAN SUGGEST STRATEGIES THAT KEEP
YOU ON TRACK TO MEET YOUR LONG-TERM FINANCIAL OBJECTIVES WITHOUT EXPOSING YOU TO
UNDUE LEVELS OF RISK.
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
APRIL 28, 2000
<PAGE>
SOCIAL
UPDATE
CALVERT-HENDERSON QUALITY OF LIFE INDICATORS
CALVERT GROUP HAS PUBLISHED CALVERT-HENDERSON QUALITY OF LIFE INDICATORS -- THE
RESULT OF A RESEARCH PROJECT THAT EXAMINES SOCIETAL TRENDS AND PRESENTS A
COMPREHENSIVE PICTURE OF THE OVERALL WELLBEING OF THE NATION.
THE PURPOSE OF THE INDICATORS IS TO EDUCATE THE PUBLIC, BROADEN THE DEBATE ABOUT
THE QUALITY OF OUR LIFE, HOLD GOVERNMENT AND BUSINESS ACCOUNTABLE, AND CLARIFY
THE IMPACT OF THE MULTIPLE CHOICES WE MAKE IN OUR WORK, LEISURE AND CIVIC LIVES.
STATISTICAL DATA, DRAWN FROM 12 AREAS OF THE US ECONOMY, IS USED TO DETERMINE
WHETHER WE ARE MAKING PROGRESS OR LOSING GROUND IN AREAS THAT CONTRIBUTE
SIGNIFICANTLY TO OUR QUALITY OF LIFE.
CALVERT HELPS PROTECT GRAY WHALE BREEDING GROUND
CALVERT GROUP JOINED FORCES WITH SEVERAL OTHER SOCIAL INVESTMENT COMPANIES TO
SUPPORT A CAMPAIGN SPONSORED BY THE INTERNATIONAL FUND FOR ANIMAL WELFARE. THE
CAMPAIGN, CALLED "DON'T BUY IT!" WAS TARGETED AT THE MITSUBISHI INTERNATIONAL
CORPORATION'S PLANS TO DEVELOP A HUGE SALT WORKS IN LAGUNA SAN IGNACIO THAT
WOULD HAVE AFFECTED THE BREEDING GROUNDS OF THE EASTERN PACIFIC GRAY WHALE.
CALVERT RECEIVED FAVORABLE PRESS COVERAGE FROM A LOCAL ABC AFFILIATE.
SUBSEQUENTLY, MEXICAN PRESIDENT ERNESTO ZEDILLO RESPONDED BY CANCELING PLANS TO
PARTNER WITH MITSUBISHI IN BUILDING THE SALT WORKS, STATING THAT THE PRISTINE
SITE SHOULD BE PRESERVED FOR FUTURE GENERATIONS.
CALVERT FOUNDATION WINS AWARD
BUSINESS ETHICS MAGAZINE GAVE THE CALVERT FOUNDATION THE "1999 COMMUNITY
INVESTMENT" AWARD AS PART OF THEIR ANNUAL SOCIAL INVESTMENT AWARDS. IN
PARTICULAR, THE PUBLICATION CITED THE FOUNDATION'S ROLE IN ESTABLISHING THE
COMMUNITY INVESTMENT AS A NEW ASSET CLASS.
<PAGE>
ED BROWN
OF BROWN CAPITAL MANAGEMENT COMPANY
HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK?
FOR THE SIX-MONTH PERIOD, OCTOBER 1, 1999 THROUGH MARCH 31, 2000, THE S&P MIDCAP
INDEX PRODUCED A TOTAL RETURN OF 32.06%. FOR THE SAME PERIOD, THE CAPITAL
ACCUMULATION FUND'S CLASS A SHARES PRODUCED A TOTAL RETURN OF 22.74%.
BY DESIGN, THE PORTFOLIO WAS OVERWEIGHT IN THE TECHNOLOGY SECTOR, AND THERE WAS
A POSITIVE EFFECT DURING THE PERIOD FOR HAVING AN OVERWEIGHT ALLOCATION. STILL,
OUR OVERALL UNDERPERFORMANCE COMPARED TO THE S&P MIDCAP INDEX BENCHMARK CAN BE
ATTRIBUTED BOTH TO THE TECHNOLOGY COMPANIES THAT WE OWNED AS WELL AS THOSE THAT
WE DO NOT OWN. TWO COMPANIES THAT WE DO OWN, BMC SOFTWARE AND COMPUWARE,
NEGATIVELY IMPACTED PERFORMANCE. MORE SIGNIFICANT, HOWEVER, WAS THE NEGATIVE
CONTRIBUTION FROM NOT OWNING VERITAS, WHICH WE FELT WAS TOO RICHLY VALUED.
HOW WAS FUND PERFORMANCE INFLUENCED BY MARKET AND ECONOMIC EVENTS?
THE SIX-MONTH PERIOD ENDING MARCH 31, 2000 MARKED A DIFFICULT MARKET ENVIRONMENT
FOR THE VALUATION-CONSCIOUS INVESTOR. SELECTED COMPANIES, PARTICULARLY THOSE IN
THE TECHNOLOGY AND TELECOMMUNICATIONS INDUSTRIES, ACHIEVED LOFTY VALUATIONS. CAN
THESE COMPANIES CONTINUE TO GROW AT A RATE THAT WILL ULTIMATELY PRODUCE
SUFFICIENT EARNINGS TO JUSTIFY THEIR MARKET CAPITALIZATION? WE DO NOT THINK SO.
PORTFOLIO STATISTICS
MARCH 31, 2000
INVESTMENT PERFORMANCE
6 MONTHS 12 MONTHS
ENDED ENDED
3/31/00 3/31/00
CLASS A 22.74% 16.06%
CLASS B 22.28% 15.18%
CLASS C 22.27% 15.15%
CLASS I 23.22% 16.93%
S&P MIDCAP 400
INDEX TR 32.06% 38.08%
LIPPER MID-CAP GROWTH
FUNDS AVERAGE 70.02% 97.82%
TEN LARGEST STOCK HOLDINGS
% OF NET ASSETS
PAYCHEX, INC. 3.32%
DOLLAR GENERAL CORP. 3.24%
KOHLS CORP. 3.17%
PRICE (T. ROWE) ASSOCIATES, INC. 3.06%
FASTENAL CO. 2.90%
LEGG MASON, INC. 2.85%
ADVENT SOFTWARE, INC. 2.79%
CARDINAL HEALTH, INC. 2.77%
DOLLAR TREE STORES, INC. 2.76%
AXIOM CORP. 2.74%
TOTAL 29.60%
ASSET ALLOCATION
STOCKS 98%
CASH OR CASH EQUIVALENTS 2%
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
MARCH 31, 2000
AVERAGE ANNUAL TOTAL RETURNS
CLASS A SHARES
ONE YEAR 10.56%
SINCE INCEPTION 19.21%
(10/31/94)
CLASS B SHARES
ONE YEAR 10.18%
SINCE INCEPTION 9.50%
(4/1/98)
CLASS C SHARES
ONE YEAR 14.15%
SINCE INCEPTION 19.35%
(10/31/94)
CLASS I SHARES
ONE YEAR 16.93%
SINCE INCEPTION 21.08%
(3/1/99)
HAVE EVENTS MODIFIED YOUR CURRENT STRATEGIC THINKING?
WE BELIEVE THAT THE VALUATIONS OF SELECTED TMT (TECHNOLOGY, MEDIA, AND
TELECOMMUNICATIONS) COMPANIES IS RETURNING TO MORE RATIONAL LEVELS. RECOGNIZING
THAT A HIGH DEGREE OF IRRATIONAL EUPHORIA HAS SURROUNDED TMT "NEW ECONOMY"
STOCKS, WE MAINTAIN A WATCHFUL EYE TOWARDS THE NON-TMT "OLD ECONOMY" COMPANIES,
AND CONTINUE TO CONSTRUCT THE PORTFOLIO BASED ON SOLID FUNDAMENTALS --
REGARDLESS OF THEIR "NEW" OR "OLD" ECONOMY DESIGNATION.
THE CURRENT ECONOMIC ENVIRONMENT REMAINS CONDUCIVE TO INVESTING IN EQUITIES. IT
SHOULD BE PUZZLING TO MOST THAT THE EQUITY MARKET CONTINUES TO RISE IN THE FACE
OF TIGHTENING BY THE FED, AND YET WHILE THE FED CONTINUES TO INCREMENTALLY RAISE
SHORT-TERM INTEREST RATES, LONG RATES CONTINUE TO REMAIN LOW AND REFLECT LOW
INFLATIONARY EXPECTATIONS. RISING INFLATIONARY EXPECTATIONS, WHICH OFTEN LEAD TO
RISING INTEREST RATES, CAN CERTAINLY HAVE AN ADVERSE IMPACT ON THE EQUITIES
MARKET. AS A CONSEQUENCE OF LOW LONG-TERM RATES, INVESTORS SEEM LITTLE SPOOKED
BY THE FED'S ACTIONS. ECONOMIC GROWTH SHOULD BE SUSTAINABLE
PERFORMANCE COMPARISON
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT. (SOURCE:LIPPER ANALYTICAL
SERVICES, INC.)
[INSERT LINE GRAPH HERE]
TOTAL RETURNS ASSUME REINVESTMENT OF DIVIDENDS AND REFLECT THE DEDUCTION OF THE
FUND'S MAXIMUM FRONT-END OR DEFERRED SALES CHARGE. NO SALES CHARGE HAS BEEN
APPLIED TO THE INDEX USED FOR COMPARISON. THE VALUE OF AN INVESTMENT IN CLASS A
& C SHARES IS PLOTTED IN THE LINE GRAPH. THE VALUE OF AN INVESTMENT IN ANOTHER
CLASS OF SHARES WOULD BE DIFFERENT. PAST PERFORMANCE IS NO GUARANTEE OF
FUTURE RESULTS.
<PAGE>
AROUND CURRENT LEVELS AND CORPORATE PROFITS SHOULD REMAIN ATTRACTIVE FOR THE
BALANCE OF THIS YEAR.
AT BROWN CAPITAL MANAGEMENT, WE WILL CONTINUE TO STRIVE TOWARDS PROVIDING
SUPERIOR SERVICE AND COMPETITIVE PERFORMANCE. WE RECOGNIZE THE CHALLENGE WE FACE
GIVEN THE IRRATIONAL ENVIRONMENT IN WHICH WE ARE COMPETING, BUT WE BELIEVE THE
GARP INVESTMENT STYLE WILL PROVE ITS MERIT OVER THE LONG-TERM.
APRIL 28, 2000
PORTFOLIO STATISTICS
MARCH 31, 2000
PORTFOLIO CHARACTERISTICS
CAPITAL S&P
ACCUMULATION MIDCAP 400
FUND INDEX
NUMBER OF STOCKS 47 400
MEDIAN MARKET
CAPITALIZATION ($BIL) 5.30 3.57
(BY PORTFOLIO WEIGHT)
PRICE/EARNINGS
RATIO 45.67 54.57
EARNINGS PER SHARE
GROWTH 28.62% 24.35%
YIELD 0.32% 1.06%
(RETURN ON CAPITAL INVESTMENT)
VOLATILITY MEASURES
CAPITAL S&P
ACCUMULATION MIDCAP 400
FUND INDEX
BETA1 0.84 0.78
R-SQUARED2 0.58 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>
STATEMENT OF NET ASSETS
MARCH 31, 2000
EQUITY SECURITIES - 97.9% SHARES VALUE
AIR FREIGHT - 0.5%
FRITZ COMPANIES, INC.* 65,600 $664,200
COMMUNICATIONS EQUIPMENT - 2.2%
ADC TELECOMMUNICATIONS, INC.* 58,300 3,140,912
COMPUTERS - SOFTWARE & SERVICES - 11.4%
ADVENT SOFTWARE, INC.* 87,000 3,991,125
AMDOCS LTD* 46,300 3,411,731
COMPUTER ASSOCIATES INTERNATIONAL, INC. 41,973 2,484,295
COMPUWARE CORP.* 57,200 1,204,775
NETWORK ASSOCIATES, INC.* 61,400 1,980,150
PARAMETRIC TECHNOLOGY CORP.* 51,300 1,080,506
TRANSACTION SYSTEMS ARCHITECTS, INC.* 71,300 2,058,787
16,211,369
DISTRIBUTORS - FOOD & HEALTH - 2.8%
CARDINAL HEALTH, INC. 86,425 3,964,747
ELECTRICAL EQUIPMENT - 4.9%
SANMINA CORP.* 47,400 3,202,462
SOLECTRON CORP.* 95,400 3,821,963
7,024,425
ELECTRONICS - SEMICONDUCTORS - 3.7%
ALTERA CORP.* 35,800 3,195,150
XILINX, INC.* 24,800 2,053,750
5,248,900
FINANCIAL - DIVERSIFIED - 2.0%
SLM HOLDING CORP. 84,300 2,808,244
HEALTHCARE - DRUGS - 1.9%
ALZA CORP.* 73,800 2,772,113
HEALTHCARE - HOSPITAL MANAGEMENT - 2.7%
HEALTH MANAGEMENT ASSOCIATES, INC.* 273,300 3,894,525
HEALTHCARE - MEDICAL PRODUCTS & SUPPLIES - 3.7%
BIOMET, INC. 87,900 3,197,362
GUIDANT CORP.* 35,436 2,084,080
5,281,442
HEALTHCARE - SPECIAL SERVICES - 4.4%
COVANCE, INC.* 175,200 1,883,400
OMNICARE, INC. 222,500 2,683,906
QUINTILES TRANSNATIONAL CORP.* 101,500 1,731,844
6,299,150
HOUSEWARES - 2.3%
NEWELL RUBBERMAID, INC. 134,200 3,329,837
<PAGE>
EQUITY SECURITIES - CONT'D SHARES VALUE
INSURANCE - LIFE & HEALTH - 2.4%
AFLAC, INC. 76,800 $3,499,200
INVESTMENT BANKING/BROKERS - 2.8%
LEGG MASON, INC. 94,300 4,078,475
INVESTMENT MANAGEMENT - 5.1%
FRANKLIN RESOURCES, INC. 85,465 2,857,736
PRICE (T. ROWE) ASSOCIATES, INC. 110,800 4,376,600
7,234,336
LEISURE TIME PRODUCTS - 2.6%
HARLEY-DAVIDSON, INC. 46,200 3,667,125
MANUFACTURING - SPECIALIZED - 2.4%
JABIL CIRCUIT, INC.* 80,000 3,460,000
OIL & GAS - DRILLING & EQUIPMENT - 1.8%
SMITH INTERNATIONAL, INC.* 33,000 2,557,500
POWER PRODUCERS - INDEPENDENT - 1.9%
AES CORP.* 35,400 2,787,750
RETAIL - BUILDING SUPPLIES - 2.9%
FASTENAL CO. 86,600 4,145,975
RETAIL - DEPARTMENT STORES - 3.2%
KOHLS CORP.* 44,200 4,530,500
RETAIL - DISCOUNTERS - 6.0%
DOLLAR GENERAL CORP. 172,376 4,632,605
DOLLAR TREE STORES, INC.* 75,700 3,945,863
8,578,468
RETAIL - SPECIALTY - 1.6%
STAPLES, INC.* 117,100 2,342,000
SERVICES - EMPLOYMENT - 3.6%
INTERIM SERVICES, INC.* 139,100 2,582,044
ROBERT HALF INTERNATIONAL, INC.* 53,800 2,552,138
5,134,182
SERVICES - ADVERTISING & MARKETING - 5.0%
ACXIOM CORP.* 117,900 3,920,175
CATALINA MARKETING CORP.* 31,600 3,199,500
7,119,675
SERVICES - COMMERCIAL & CONSUMER - 3.8%
CINTAS CORP. 97,950 3,838,415
KEANE, INC.* 61,800 1,560,450
5,398,865
<PAGE>
EQUITY SECURITIES - CONT'D SHARES VALUE
SERVICES - DATA PROCESS - 8.8%
BISYS GROUP, INC.* 52,200 $3,471,300
EQUIFAX, INC. 56,700 1,431,675
FISERV, INC.* 79,950 2,973,141
PAYCHEX, INC. 90,650 4,747,794
12,623,910
TELEPHONE - 1.5%
CENTURYTEL, INC. 57,900 2,149,537
TOTAL INVESTMENTS (COST $114,210,420) - 97.9% 139,947,362
OTHER ASSETS AND LIABILITIES, NET - 2.1% 2,942,674
NET ASSETS - 100% $142,890,036
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: 3,731,125 SHARES OUTSTANDING $85,084,085
CLASS B: 404,326 SHARES OUTSTANDING 11,039,185
CLASS C: 374,414 SHARES OUTSTANDING 8,794,494
CLASS I: 93,735 SHARES OUTSTANDING 2,399,939
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) (832,532)
ACCUMULATED NET REALIZED GAIN (LOSS) ON INVESTMENTS 10,667,923
NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS 25,736,942
NET ASSETS $142,890,036
NET ASSET VALUE PER SHARE
CLASS A (BASED ON NET ASSETS OF $116,446,686) $31.21
CLASS B (BASED ON NET ASSETS OF $12,364,286) $30.58
CLASS C (BASED ON NET ASSETS OF $11,129,472) $29.73
CLASS I (BASED ON NET ASSETS OF $2,949,592) $31.47
*NON-INCOME PRODUCING.
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED MARCH 31, 2000
NET INVESTMENT INCOME
INVESTMENT INCOME:
DIVIDEND INCOME $228,606
INTEREST INCOME 55,815
TOTAL INVESTMENT INCOME 284,421
EXPENSES:
INVESTMENT ADVISORY FEE 433,457
TRANSFER AGENCY FEES AND EXPENSES 237,663
DISTRIBUTION PLAN EXPENSES:
CLASS A 191,970
CLASS B 54,333
CLASS C 50,028
DIRECTORS' FEES AND EXPENSES 9,090
ADMINISTRATIVE FEES 164,613
CUSTODIAN FEES 11,318
REGISTRATION FEES 17,580
REPORTS TO SHAREHOLDERS 28,789
PROFESSIONAL FEES 7,774
MISCELLANEOUS 8,671
TOTAL EXPENSES 1,215,286
REIMBURSEMENT FROM ADVISOR:
CLASS I (6,696)
FEES PAID INDIRECTLY (91,637)
NET EXPENSES 1,116,953
NET INVESTMENT INCOME (LOSS) (832,532)
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
NET REALIZED GAIN (LOSS) 12,005,325
CHANGE IN UNREALIZED APPRECIATION OR (DEPRECIATION) 16,274,435
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS 28,279,760
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $27,447,228
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS
ENDED YEAR ENDED
MARCH 31, SEPTEMBER 30,
INCREASE (DECREASE) IN NET ASSETS 2000 1999
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ($832,532) ($1,612,851)
NET REALIZED GAIN (LOSS) 12,005,325 1,270,247
CHANGE IN UNREALIZED APPRECIATION
OR (DEPRECIATION) 16,274,435 11,231,435
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 27,447,228 10,888,831
DISTRIBUTIONS TO SHAREHOLDERS FROM
NET REALIZED GAIN:
CLASS A SHARES (1,975,964) (10,557,812)
CLASS B SHARES (198,178) (596,624)
CLASS C SHARES (189,403) (970,417)
CLASS I SHARES (52,081) -
TOTAL DISTRIBUTIONS (2,415,626) (12,124,853)
CAPITAL SHARE TRANSACTIONS:
SHARES SOLD:
CLASS A SHARES 10,314,418 47,089,845
CLASS B SHARES 1,811,115 6,983,555
CLASS C SHARES 1,628,020 4,076,502
CLASS I SHARES 315,484 2,940,985
REINVESTMENT OF DISTRIBUTIONS:
CLASS A SHARES 1,871,648 10,000,529
CLASS B SHARES 180,280 532,729
CLASS C SHARES 165,979 903,502
CLASS I SHARES 52,080 -
SHARES REDEEMED:
CLASS A SHARES (18,805,656) (29,009,734)
CLASS B SHARES (1,119,813) (926,168)
CLASS C SHARES (1,599,358) (2,363,013)
CLASS I SHARES (476,327) (399,031)
TOTAL CAPITAL SHARE TRANSACTIONS (5,662,130) 39,829,701
TOTAL INCREASE (DECREASE) IN NET ASSETS 19,369,472 38,593,679
NET ASSETS
BEGINNING OF PERIOD 123,520,564 84,926,885
END OF PERIOD (INCLUDING UNDISTRIBUTED NET INVESTMENT
INCOME (LOSS) OF ($832,532) AND $0 RESPECTIVELY)
$142,890,036 $123,520,564
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS
ENDED YEAR ENDED
MARCH 31, SEPTEMBER 30,
CAPITAL SHARE ACTIVITY 2000 1999
SHARES SOLD:
CLASS A SHARES 366,836 1,692,297
CLASS B SHARES 67,548 253,225
CLASS C SHARES 63,064 152,204
CLASS I SHARES 10,683 112,142
REINVESTMENT OF DISTRIBUTIONS:
CLASS A SHARES 65,146 371,631
CLASS B SHARES 6,392 19,988
CLASS C SHARES 6,053 34,884
CLASS I SHARES 1,801 -
SHARES REDEEMED:
CLASS A SHARES (662,459) (1,054,042)
CLASS B SHARES (40,565) (33,240)
CLASS C SHARES (59,116) (88,528)
CLASS I SHARES (16,739) (14,152)
TOTAL CAPITAL SHARE ACTIVITY (191,356) 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 LEVEL 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 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
<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,
$109,172 WAS PAYABLE AT PERIOD END.
THE ADVISOR CONTRACTUALLY REIMBURSED THE FUND FOR EXPENSES OF $6,696.
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, $29,086 WAS PAYABLE
AT PERIOD 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, $52,850 WAS PAYABLE AT
PERIOD END.
THE DISTRIBUTOR RECEIVED $45,539 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 $68,582 FOR THE PERIOD ENDED MARCH 31, 2000. UNDER THE TERMS OF THE
AGREEMENT, $11,466 WAS PAYABLE AT PERIOD 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 PERIOD, PURCHASES AND SALES OF INVESTMENTS, OTHER THAN SHORT-TERM
SECURITIES, WERE $79,875,648 AND $80,127,601, RESPECTIVELY.
THE COST OF INVESTMENTS OWNED AT MARCH 31, 2000 WAS SUBSTANTIALLY THE SAME FOR
FEDERAL INCOME TAX AND FINANCIAL REPORTING PURPOSES. NET UNREALIZED APPRECIATION
AGGREGATED $25,736,942, OF WHICH $29,618,676 RELATED TO APPRECIATED
SECURITIES AND $3,881,734 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 AND CVS AMERITAS INDEX 500
PORTFOLIOS) 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 MARCH 31, 2000.
<PAGE>
FINANCIAL HIGHLIGHTS
PERIODS ENDED
MARCH 31, SEPTEMBER 30, SEPTEMBER 30,
CLASS A SHARES 2000 1999 1998
NET ASSET VALUE, BEGINNING $25.88 $25.43 $27.21
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME (LOSS) (.17) (.32) (.25)
NET REALIZED AND UNREALIZED GAIN (LOSS)
6.01 4.25 .96
TOTAL FROM INVESTMENT OPERATIONS 5.84 3.93 .71
DISTRIBUTIONS FROM
NET REALIZED GAIN (.51) (3.48) (2.49)
TOTAL DISTRIBUTIONS (.51) (3.48) (2.49)
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE
5.33 .45 (1.78)
NET ASSET VALUE, ENDING $31.21 $25.88 $25.43
TOTAL RETURN* 22.74% 14.91% 3.37%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME (LOSS) (1.14%) (A) (1.26%) (1.08%)
TOTAL EXPENSES 1.70% (A) 1.73% 1.74%
EXPENSES BEFORE OFFSETS 1.70% (A) 1.73% 1.74%
NET EXPENSES 1.57% (A) 1.58% 1.61%
PORTFOLIO TURNOVER 62% 88% 77%
NET ASSETS, ENDING (IN THOUSANDS) 116,447 102,508 $75,068
PERIODS ENDED
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
CLASS A SHARES 1997 1996 1995^
NET ASSET VALUE, BEGINNING $22.55 $21.48 $15.00
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME (LOSS) (.25) (.24) (.11)
NET REALIZED AND UNREALIZED GAIN (LOSS) 4.91 1.88 6.61
TOTAL FROM INVESTMENT OPERATIONS 4.66 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
4.66 1.07 6.48
NET ASSET VALUE, ENDING $27.21 $22.55 $21.48
TOTAL RETURN* 20.67% 7.92% 43.40%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME (LOSS) (1.09%) (1.56%) (1.55%)(A)
TOTAL EXPENSES 1.91% 2.16% 2.40%(A)
EXPENSES BEFORE OFFSETS 1.91% 2.16% 2.35%(A)
NET EXPENSES 1.85% 1.98% 2.06%(A)
PORTFOLIO TURNOVER 126% 114% 95%
NET ASSETS, ENDING (IN THOUSANDS) $54,751 $39,834 $16,111
<PAGE>
FINANCIAL HIGHLIGHTS
PERIODS ENDED
MARCH 31, 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) (.26) (.41) (.16)
NET REALIZED AND UNREALIZED GAIN (LOSS)
5.89 4.07 (2.95)
TOTAL FROM INVESTMENT OPERATIONS 5.63 3.66 (3.11)
DISTRIBUTIONS FROM
NET REALIZED GAIN (.51) (3.48) -
TOTAL DISTRIBUTIONS (.51) (3.48) -
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE
5.12 .18 (3.11)
NET ASSET VALUE, ENDING $30.58 $25.46 $25.28
TOTAL RETURN* 22.28% 13.85% (10.95)%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME (LOSS) (1.93%) (A) (2.11%) (2.62%)
(A)
TOTAL EXPENSES 2.54% (A) 2.67% 3.57% (A)
EXPENSES BEFORE OFFSETS 2.54% (A) 2.67% 3.31% (A)
NET EXPENSES 2.34% (A) 2.42% 3.01% (A)
PORTFOLIO TURNOVER 62% 88% 77%
NET ASSETS, ENDING (IN THOUSANDS) 12,364 9,445 $3,311
<PAGE>
FINANCIAL HIGHLIGHTS
PERIODS ENDED
MARCH 31 SEPTEMBER 30, SEPTEMBER 30,
CLASS C SHARES 2000 1999 1998
NET ASSET VALUE, BEGINNING $24.76 $24.63 $26.64
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME (LOSS) (.26) (.51) (.40)
NET REALIZED AND UNREALIZED GAIN (LOSS) 5.74 4.12 .88
TOTAL FROM INVESTMENT OPERATIONS 5.48 3.61 .48
DISTRIBUTIONS FROM
NET REALIZED GAIN (.51) (3.48) (2.49)
TOTAL DISTRIBUTIONS (.51) (3.48) (2.49)
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE
4.97 .13 (2.01)
NET ASSET VALUE, ENDING $29.73 $24.76 $24.63
TOTAL RETURN* 22.27% 14.02% 2.52%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME (LOSS) (1.92%) (A) (2.04%) (1.98%)
TOTAL EXPENSES 2.52% (A) 2.56% 2.75%
EXPENSES BEFORE OFFSETS 2.52% (A) 2.56% 2.75%
NET EXPENSES 2.33% (A) 2.35% 2.50%
PORTFOLIO TURNOVER 62% 88% 77%
NET ASSETS, ENDING (IN THOUSANDS) 11,129 9,021 $6,548
PERIODS ENDED
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
CLASS C SHARES 1997 1996 1995^
NET ASSET VALUE, BEGINNING $22.34 $21.55 $15.00
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME (LOSS) (.47) (.55) (.15)
NET REALIZED AND UNREALIZED GAIN (LOSS)
4.77 1.91 6.70
TOTAL FROM INVESTMENT OPERATIONS 4.30 1.36 6.55
DISTRIBUTIONS FROM
NET INVESTMENT INCOME - - -
NET REALIZED GAIN - (.57) -
TOTAL DISTRIBUTIONS - (.57) -
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE
4.30 .79 6.55
NET ASSET VALUE, ENDING $26.64 $22.34 $21.55
TOTAL RETURN* 19.25% 6.56% 43.67%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME (LOSS) (2.30%) (2.82%) (3.13%)(A)
TOTAL EXPENSES 3.11% 3.42% 6.58%(A)
EXPENSES BEFORE OFFSETS 3.11% 3.42% 3.79%(A)
NET EXPENSES 3.05% 3.24% 3.50%(A)
PORTFOLIO TURNOVER 126% 114% 95%
NET ASSETS, ENDING (IN THOUSANDS) $4,184 $3,164 $1,992
<PAGE>
FINANCIAL HIGHLIGHTS
PERIODS ENDED
MARCH 31 SEPTEMBER 30,
CLASS I SHARES 2000 1999^^
NET ASSET VALUE, BEGINNING $25.99 $26.18
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME (LOSS) (.06) (.08)
NET REALIZED AND UNREALIZED GAIN (LOSS) 6.05 (.11)
TOTAL FROM INVESTMENT OPERATIONS 5.99 (.19)
DISTRIBUTIONS FROM
NET REALIZED GAIN (.51) -
TOTAL DISTRIBUTIONS (.51) -
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE 5.48 (.19)
NET ASSET VALUE, ENDING $31.47 $25.99
TOTAL RETURN* 23.22% (.73%)
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME (LOSS) (.39%) (A) (.50%) (A)
TOTAL EXPENSES 1.33% (A) 1.24% (A)
EXPENSES BEFORE OFFSETS .85% (A) .85% (A)
NET EXPENSES .80% (A) .80% (A)
PORTFOLIO TURNOVER 62% 88%
NET ASSETS, ENDING (IN THOUSANDS) 2,950 $2,547
(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>
THIS PAGE INTENTIONALLY LEFT BLANK
<PAGE>
THIS PAGE INTENTIONALLY LEFT BLANK
<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>
MARCH 31, 2000
SEMI-ANNUAL
REPORT
CALVERT WORLD VALUES
INTERNATIONAL EQUITY
FUND
<PAGE>
TABLE
OF
CONTENTS
PRESIDENT'S LETTER
1
SOCIAL UPDATE
2
PORTFOLIO
MANAGER REMARKS
3
STATEMENT
OF NET ASSETS
8
STATEMENT
OF OPERATIONS
13
STATEMENTS
OF CHANGES IN
NET ASSETS
14
NOTES TO
FINANCIAL STATEMENTS
16
FINANCIAL HIGHLIGHTS
19
DEAR SHAREHOLDERS:
IN A QUARTER WHERE FEARS OVER A DISRUPTING Y2K BUG SUBSIDED JUST DAYS INTO THE
START OF THE NEW YEAR, THE SPECTER OF INCREASED MARKET VOLATILITY TOOK EVEN
GREATER SUBSTANCE - WITH LARGE UPWARD SWINGS ONE DAY - ESPECIALLY IN THE
TECHNOLOGY-LADEN NASDAQ - FOLLOWED BY DROPS OF 100 (OR EVEN 487) POINTS, THE
NEXT.
AT THE SAME TIME THE FEDERAL RESERVE, FRETTING OVER AN OVERHEATING ECONOMY,
CONTINUED TO PUSH UP SHORT-TERM INTEREST RATES.
AS IN PAST QUARTERS, YOU COULD PICK THE TOP PERFORMERS BY CAPITALIZATION RANGE
AND INDUSTRY GROUP. JUST AS TECHNOLOGY AND BIOTECH PLAYS FUELED MUCH OF THE
ADVANCE EARLIER IN THE QUARTER, THE INITIAL MICROSOFT JUDGMENT, ALONG WITH WORDS
OF WARNING FROM PRESIDENT BILL CLINTON AND BRITISH PRIME MINISTER TONY BLAIR
OVER GENETIC RESEARCH PROPERTY RIGHTS, SIGNALED A SHARP DECLINE IN BOTH "NEW
ECONOMY" SECTORS. AND ALL THIS DURING A QUARTER WHEN, ON MARCH 16, THE DOW
JONES INDUSTRIAL AVERAGE POSTED A 499-POINT GAIN!
MARKET VOLATILITY - IF NOT DOWNRIGHT TURMOIL - IS, WE BELIEVE, A CURRENT
CONDITION, NOT A CONSTANT. STILL, THIS CHALLENGING ENVIRONMENT UNDERSCORES THE
VALUE OF PROFESSIONAL MONEY MANAGEMENT. REMEMBER TO MAKE DECISIONS BASED ON
YOUR FINANCIAL OBJECTIVES AND TOLERANCE FOR RISK. REEVALUATE YOUR ASSET
ALLOCATION TO BE SURE YOU ARE POSITIONED AT A COMFORTABLE LEVEL. IF YOU THINK
CHANGE IS IN ORDER, YOUR FINANCIAL PROFESSIONAL CAN SUGGEST STRATEGIES THAT KEEP
YOU ON TRACK TO MEET YOUR LONG-TERM FINANCIAL OBJECTIVES WITHOUT EXPOSING YOU TO
UNDUE LEVELS OF RISK.
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
APRIL 28, 2000
<PAGE>
SOCIAL
UPDATE
CALVERT-HENDERSON QUALITY OF LIFE INDICATORS
CALVERT GROUP HAS PUBLISHED CALVERT-HENDERSON QUALITY OF LIFE INDICATORS -- THE
RESULT OF A RESEARCH PROJECT THAT EXAMINES SOCIETAL TRENDS AND PRESENTS A
COMPREHENSIVE PICTURE OF THE OVERALL WELLBEING OF THE NATION.
THE PURPOSE OF THE INDICATORS IS TO EDUCATE THE PUBLIC, BROADEN THE DEBATE ABOUT
THE QUALITY OF OUR LIFE, HOLD GOVERNMENT AND BUSINESS ACCOUNTABLE, AND CLARIFY
THE IMPACT OF THE MULTIPLE CHOICES WE MAKE IN OUR WORK, LEISURE AND CIVIC LIVES.
STATISTICAL DATA, DRAWN FROM 12 AREAS OF THE US ECONOMY, IS USED TO DETERMINE
WHETHER WE ARE MAKING PROGRESS OR LOSING GROUND IN AREAS THAT CONTRIBUTE
SIGNIFICANTLY TO OUR QUALITY OF LIFE.
CALVERT HELPS PROTECT GRAY WHALE BREEDING GROUND
CALVERT GROUP JOINED FORCES WITH SEVERAL OTHER SOCIAL INVESTMENT COMPANIES TO
SUPPORT A CAMPAIGN SPONSORED BY THE INTERNATIONAL FUND FOR ANIMAL WELFARE. THE
CAMPAIGN, CALLED "DON'T BUY IT!" WAS TARGETED AT THE MITSUBISHI INTERNATIONAL
CORPORATION'S PLANS TO DEVELOP A HUGE SALT WORKS IN LAGUNA SAN IGNACIO THAT
WOULD HAVE AFFECTED THE BREEDING GROUNDS OF THE EASTERN PACIFIC GRAY WHALE.
CALVERT RECEIVED FAVORABLE PRESS COVERAGE FROM A LOCAL ABC AFFILIATE.
SUBSEQUENTLY, MEXICAN PRESIDENT ERNESTO ZEDILLO RESPONDED BY CANCELING PLANS TO
PARTNER WITH MITSUBISHI IN BUILDING THE SALT WORKS, STATING THAT THE PRISTINE
SITE SHOULD BE PRESERVED FOR FUTURE GENERATIONS.
CALVERT FOUNDATION WINS AWARD
BUSINESS ETHICS MAGAZINE GAVE THE CALVERT FOUNDATION THE "1999 COMMUNITY
INVESTMENT" AWARD AS PART OF THEIR ANNUAL SOCIAL INVESTMENT AWARDS. IN
PARTICULAR, THE PUBLICATION CITED THE FOUNDATION'S ROLE IN ESTABLISHING THE
COMMUNITY INVESTMENT AS A NEW ASSET CLASS.
<PAGE>
ANDREW PRESTON
OF MURRAY JOHNSTONE INTERNATIONAL
HOW DID THE FUND PERFORM RELATIVE TO ITS BENCHMARK?
OVER THE SIX MONTHS, THE MSCI EAFE INDEX RETURNED 17.00% WHILE THE PORTFOLIO'S
CLASS A SHARES RETURNED 18.57%.
THE SIX-MONTH PERIOD CLOSING 31 MARCH WAS STARKLY DIVIDED INTO TWO PARTS:
1. MARKETS SURGED IN THE LAST QUARTER OF 1999 ON A COMBINATION OF ENTHUSIASM FOR
THE "TMT" STOCKS - TECHNOLOGY, MEDIA AND TELECOMMUNICATIONS, AND THE ABUNDANT
LIQUIDITY PROVIDED BY CENTRAL BANKS TO ENSURE THAT Y2K DID NOT LEAD A SHORTFALL
IN CASH AND PANIC IN FINANCIAL MARKETS. THIS EUPHORIA SPREAD FROM THE US TO
EUROPE AND THE FAR EAST AND LED TO DYNAMIC RETURNS FOR INVESTORS.
2. IN JANUARY, WE SAW THE FIRST SIGNS THAT THERE WAS ANOTHER SIDE TO THE MARKET
AND THAT VALUATIONS ATTACHED TO SOME "NEW ECONOMY" STOCKS MIGHT BE
OVER-OPTIMISTIC. DURING THE NEXT THREE MONTHS SENTIMENT SWUNG BETWEEN SUPPORT
FOR "NEW ECONOMY" AND "OLD ECONOMY" STOCKS, TO THE EXTENT THAT FOR THE FIRST
QUARTER OF 2000, THE EAFE INDEX WAS ALMOST UNCHANGED.
EUROPE
THE EUROPEAN MARKETS SAW A SOLID END TO 1999 BUT, SIMILARLY, GAVE SOME OF THIS
BACK IN THE NEW YEAR, TO END THE SIX MONTHS UP 17.6%. THE PORTFOLIO WAS
MARGINALLY BEHIND THIS WITH A RETURN OF 16.8%. DURING 1999, THE EURO ITSELF WAS
ONE OF THE KEY THEMES. OUR VIEW WAS THAT THE WEAK EURO WAS A REFLECTION OF
WEAKER ECONOMIC GROWTH BUT THAT IN TIME THE CHEAPER CURRENCY WOULD
PORTFOLIO STATISTICS
MARCH 31, 2000
INVESTMENT PERFORMANCE
6 MONTHS 12 MONTHS
ENDED ENDED
3/31/00 3/31/00
CLASS A 18.57% 25.83%
CLASS B 18.01% 24.36%
CLASS C 18.04% 24.69%
CLASS I 19.00% 26.78%
MSCI EAFE
INDEX GD 17.00% 25.40%
LIPPER INTERNATIONAL
FUNDS AVERAGE 27.02% 39.77%
TEN LARGEST STOCK HOLDINGS
% OF NET ASSETS
TELECOM ITALIA MOBILE 3.5%
TELE NORTELESTE PARTICIPACOES 3.0%
CAP GEMINI 2.6%
TELEFONS DE MEXICO 2.4%
NOKIA (AB) OY 2.2%
VIVENDI 2.2%
VODAFONE AIRTOUCH 2.1%
MARSHOLTEK LAUTEN 1.9%
TELEFONAKTIABOLAGET LM ERICSSON 1.9%
SKF AB 1.8%
TOTAL 23.6%
ASSET ALLOCATION
STOCKS 96%
BONDS 2%
CASH & CASH EQUIVALENTS 2%
100%
INVESTMENT PERFORMANCE DOES NOT REFLECT THE DEDUCTION OF ANY FRONT-END OR
DEFERRED SALES CHARGE.
GD REPRESENTS GROSS DIVIDENDS.
SOURCE: LIPPER ANALYTICAL SERVICES, INC.
<PAGE>
PORTFOLIO STATISTICS
MARCH 31, 2000
AVERAGE ANNUAL TOTAL RETURNS
CLASS A SHARES
ONE YEAR 19.84%
FIVE YEAR 13.52%
SINCE INCEPTION 10.87%
(7/2/92)
CLASS B SHARES
ONE YEAR 19.36%
SINCE INCEPTION 10.29%
(4/1/98)
CLASS C SHARES
ONE YEAR 23.69%
FIVE YEAR 13.48%
SINCE INCEPTION 9.47%
(3/1/94)
CLASS I SHARES
ONE YEAR 26.78%
SINCE INCEPTION 28.32%
(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
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>
SINGAPORE
THE SINGAPORE MARKET FARED RELATIVELY POORLY DURING THE PERIOD. WITH MALAYSIA
BEING READMITTED TO THE MAJOR INDICES, INVESTORS INCREASED THEIR EXPOSURE,
DIVERTING ASSETS FROM SINGAPORE TO ACHIEVE THEIR TARGET WEIGHTING. HONG KONG
SAW A STRONG MARKET, RETURNING 30.0%. THE PORTFOLIO OUTPERFORMED WITH A RETURN
OF 71.1%, AS INVESTORS INCREASED THEIR INVESTMENT IN CHEUNG KONG, THE
BELL-WEATHER STOCK FOR THE MARKET.
THE EMERGING MARKETS PERFORMED STRONGLY IN BOTH THE FINAL QUARTER OF 1999 AND
THE FIRST QUARTER OF 2000. IN LATIN AMERICA LOWER INFLATION ALLOWED THE
GOVERNMENT TO CONTINUE TO BRING DOWN INTEREST RATES, ATTRACTING BUYERS TO
EQUITIES. WITH THE REGION UP 32.2%, THE PORTFOLIO RETURNED 73.7% ON ITS
INVESTMENTS.
WHAT WAS YOUR STRATEGY FOR THE SIX MONTHS ENDING MARCH 31ST?
DURING THE PERIOD OUR INVESTMENT POLICY WAS TO TRIM THE UK, TAKE SOME PROFITS
FROM JAPAN AND REINVEST THE PROCEEDS IN EUROPE. OUR BELIEF WAS THAT ALL THE
ELEMENTS WERE IN PLACE IN EUROPE FOR A PICK UP IN PROFITS AND EQUITY MARKETS
EITHER LATE IN 1999 OR EARLY IN 2000. AS IT HAPPENED, THIS PROCESS COMMENCED IN
1999 BUT WE BELIEVE IT STILL HAS FURTHER TO RUN. WE HAVE BEEN FOCUSING
INVESTMENTS ON GERMANY BUT THE SALE OF MANNESMANN TEMPORARILY REDUCED EXPOSURE
TO THE MARKET. THIS WILL BE REBUILT. THE REDUCTION IN THE UK PROVED TIMELY
SINCE THIS WAS THE WORST-PERFORMING MARKET IN EUROPE IN THE FIRST THREE MONTHS
OF 2000.
THE "TMT" BOOM AND THE "OLD" VERSUS THE "NEW" ECONOMY
A SUBSTANTIAL PORTION OF THE PROFITS GENERATED IN THE LAST QUARTER OF 1999
DERIVED FROM "TMT" AND DOT.COM STOCKS. VALUATIONS
PORTFOLIO STATISTICS
COUNTRY ALLOCATION
% OF EQUITY SECURITIES
3/31/00 9/30/99
ARGENTINA - 1.0%
AUSTRALIA 1.1% 1.6%
BELGIUM 0.8% --
BERMUDA 0.2% -
BRAZIL 4.2% 2.0%
COSTA RICA - 0.1%
DENMARK 1.6% 1.4%
FINLAND 2.3% -
FRANCE 10.5% 11.8%
GERMANY 6.2% 7.7%
HONG KONG 1.2% 1.0%
IRELAND 1.9% 2.0%
ITALY 5.6% 6.3%
JAPAN 29.1% 31.2%
MEXICO 2.8% 2.2%
NETHERLANDS 4.7% 8.3%
NEW ZEALAND 1.2% 1.2%
NORWAY 2.7% 1.3%
SINGAPORE 1.1% 1.3%
SOUTH AFRICA 0.8% 1.1%
SPAIN 1.3% 1.8%
SWEDEN 3.9% 1.9%
SWITZERLAND 3.0% 2.1%
TAIWAN 1.0% -
U.K. 11.9% 12.1%
U.S. 0.9% 0.6%
100% 100%
<PAGE>
PORTFOLIO STATISTICS
MARCH 31, 2000
PORTFOLIO CHARACTERISTICS
(EQUITY HOLDINGS, EXCLUDING SPECIAL EQUITIES)
INTERNATIONAL MSCI
EQUITY EAFE
FUND INDEX
NUMBER OF STOCKS 77 958
MEDIAN MARKET
CAPITALIZATION ($BIL) 21.11 N/A
(BY PORTFOLIO WEIGHT)
PRICE/EARNINGS
RATIO 30.31 31.81
YIELD 1.35% 1.56%
(RETURN ON CAPITAL INVESTMENT)
VOLATILITY MEASURE
INTERNATIONAL MSCI
EQUITY EAFE
FUND INDEX
BETA1 1.11 1.09
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.
SOURCE: VESTEK, INC.
WERE LESS IMPORTANT THAN GROWTH POTENTIAL AND INVESTORS ANTICIPATED GROWTH RATES
WELL IN EXCESS OF THE RATES ACHIEVABLE BY "OLD ECONOMY" COMPANIES. INDEED, VALUE
STOCKS BECAME LITTLE MORE THAN A SOURCE OF CASH TO FUND GROWTH PORTFOLIOS, TO
THE EXTENT THAT MANY ESTABLISHED AND PROFITABLE BUSINESSES WERE VALUED AT ONLY A
FRACTION OF THE CAPITALIZATION OF SOME OF THE NEW ECONOMY COMPANIES. HOWEVER, IT
WAS THE POOR RESULTS IN THE INCUBATION STAGE OF MANY START-UPS THAT LED TO A
LOSS OF CONFIDENCE. THIS SPREAD TO THE TECHNOLOGY AND MEDIA GROUPS WHICH HAD
PERFORMED WELL THROUGHOUT 1999 AND WHERE PROFITS WERE THERE TO BE TAKEN.
OUR VIEW ON THE SECTOR IS THAT TMT IS A THEME THAT WILL BE WITH US FOR MANY
YEARS BUT THERE WILL BE WINNERS AND LOSERS. THE WINNERS WILL BE THOSE COMPANIES
WHOSE TECHNIQUES AND PROCESSES CAN BE DEVELOPED INTO A SALEABLE PRODUCT, THE
HARDWARE PRODUCERS OR THOSE COMPANIES STREAMLINING BUSINESS TO BUSINESS
TRANSACTIONS. LESS CERTAIN WILL BE THE FUTURE FOR THOSE COMPANIES WHO HAVE SOLD
THEMSELVES ON THE BASIS OF A "GOOD IDEA" YET TO BE TESTED. THE WORLD VALUES
PORTFOLIO WILL FOCUS ON COMPANIES SUCH AS NOKIA, ERICSSON, AND FUJITSU - WHICH
HAVE PROVEN THEIR BUSINESS STRATEGIES AND ACHIEVED MARKET LEADERSHIP.
THE IMPACT OF FEDERAL RESERVE POLICY
THE DYNAMIC GROWTH IN THE US ECONOMY WAS A FUNDAMENTAL DRIVER OF GLOBAL RECOVERY
IN THE LATE 1990'S. HOWEVER, IT IS CLEAR THAT THE US HAS BEEN GROWING AT A RATE
IN EXCESS OF THE LONG-TERM SUSTAINABLE RATE OF 4%. WE BELIEVE THE FEDERAL
RESERVE BOARD WILL MOVE TO SLOW THIS PACE BY CONTINUING TO RAISE RATES. WITH THE
COMBINATION OF STRONG RETAIL DEMAND AND HOUSE PRICE INFLATION IN THE UK, THE
GOVERNMENT WILL
<PAGE>
CONTINUE TO HAVE A BIAS TOWARDS TIGHTENING. IN EUROPE, GROWTH APPEARS TO BE
MUCH MORE SOUNDLY BASED IN 2000 THAN IT WAS IN 1999. ACCORDINGLY, THERE WILL BE
PRESSURES TO FOLLOW THE FED LEAD, ALLOWING FOR THE FACT THAT THE PACE OF GROWTH
IS MUCH SLOWER AND SUBSTANTIAL RISES WILL NOT BE NEEDED. THE FIRST GREEN SHOOTS
OF GROWTH IN JAPAN ARE ONLY NOW APPEARING. ALTHOUGH RATES CANNOT FALL IN JAPAN,
THERE WILL BE NO PRESSURE TO HIKE RATES FOR SOME TIME. THE SITUATION IS SIMILAR
IN CHINA, WHICH IS ONLY NOW RECOVERING FROM A PERIOD OF DEFLATION. SO, WITH THE
EXCEPTION OF THE US AND UK THE YEAR SHOULD BE RELATIVELY FREE OF NEW INTEREST
RATE "SHOCKS", A SITUATION WHICH SHOULD ALLOW MARKETS TO STABILIZE.
MARKET OUTLOOK FOR 2000
WITH GLOBAL GROWTH GATHERING MOMENTUM AND HIGHER INTEREST RATES LARGELY CONFINED
TO THE US AND UK, MARKETS SHOULD RECOVER THEIR COMPOSURE AFTER THE RECENT
CORRECTION. GROWTH IN EUROPE IS CLEARLY ON AN UPWARD TREND, WHILE IN CHINA
THERE ARE NOW SIGNS OF A MODEST PICK UP. THESE AREAS WILL SEE A CONTINUATION OF
LOW INTEREST RATES AND EASY MONETARY POLICY - CONDITIONS THAT SHOULD FAVOR
GROWTH, CORPORATE PROFITS, AND EQUITY MARKET RETURNS. IN CONCLUSION, MANY
COMPANIES HAVE SEEN THEIR STOCK PRICE SOAR DURING 1999, AND MANY OTHERS HAVE
SEEN IT PLUMB NEW LOWS. OPPORTUNITIES FOR CHEAP INVESTMENTS DO EXIST, BUT WE
MUST BE SELECTIVE IN MAKING INVESTMENTS IN COMPANIES DESTINED TO BE "WINNERS".
OUR FOCUS WILL THEREFORE BE ON THOSE COMPANIES THAT HAVE REAL BUSINESSES WITH
EARNINGS POWER.
APRIL 28, 2000
<PAGE>
STATEMENT OF NET ASSETS
MARCH 31, 2000
EQUITY SECURITIES - 95.5% SHARES VALUE
AUSTRALIA - 1.1%
NATIONAL AUSTRALIA BANK* 137,000 $1,760,001
QANTAS AIRWAYS, LTD. 675,000 1,408,409
3,168,410
BELGIUM - 0.8%
FORTIS 89,175 2,288,439
BERMUDA- 0.2%
HONG KONG LAND HOLDING CO. 445,000 618,550
BRAZIL - 4.0%
TELENORTE LESTE PARTICIPACOES (ADR) 330,000 8,786,250
UNIBANCO - UNIAO DE BANCOS BRASILEIROS* 100,000 3,175,000
11,961,250
DENMARK - 1.5%
NOVO-NORDISK AS B 32,364 4,369,071
FINLAND - 2.2%
NOKIA OYJ - AB 31,139 6,589,589
FRANCE - 10.0%
BANQUE NATIONAL DE PARIS 47,572 3,758,087
CAP GEMINI 28,814 7,808,209
FRANCE TELECOM S.A. 23,097 3,980,975
LEGRAND 24,639 4,588,852
PINAULT-PRINTEMPS 15,000 2,780,725
VIVENDI 6,437 6,511,970
29,428,818
GERMANY - 5.9%
DOUGLAS HOLDINGS AG 58,858 1,842,955
DRESDNER BANK AG 81,645 3,360,922
EPCOS AG 25,234 3,322,387
LINDE 72,616 3,142,912
MARSCHOLLEK LAUTEN AG 9,572 5,728,542
17,397,718
HONG KONG - 1.1%
CHEUNG KONG 230,000 3,441,190
IRELAND - 1.8%
ALLIED IRISH BANKS 312,173 3,031,062
BANCA POPOLARE DI MILANO 334,927 2,321,935
5,352,997
<PAGE>
EQUITY SECURITIES - CONT'D SHARES VALUE
ITALY - 5.4%
TELECOM ITALIA MOBILE 846,491 $10,391,345
TELECOM ITALIA 795,700 5,424,888
15,816,233
JAPAN - 27.8%
AMADA CO., LTD. 380,000 3,072,128
FUJI MACHINE MANUFACTURING 69,000 5,128,038
FUJI PHOTO FILM CO., LTD. 118,000 5,195,149
FUJITSU 156,000 4,786,441
KYOCERA CORP. 29,000 4,847,221
MATSUSHITA COMM 26,000 4,786,441
NIPPON COMSYS 223,000 4,148,736
NSK 385,000 2,880,047
NTT MOBILE COMMUNICATIONS 130 5,330,931
OLYMPUS OPTICAL CO. 292,000 4,522,281
OMRON CORP. 158,000 4,493,839
SECOM CO. 58,000 4,971,509
SHARP CORPORATION 233,000 4,981,591
SONY CORP. 34,000 4,818,585
SUMITOMO BANK 318,000 4,739,103
T.D.K. 36,000 4,902,157
TAKEFUJI CORP.* 30,000 3,214,338
YAMANOUCHI PHARMACEUTICALS 97,000 5,309,892
82,128,427
MEXICO - 2.7%
GRUPO INDUSTRIAL DURANGO (ADR)* 64,500 854,625
TELEFONOS DE MEXICO (ADR) 105,000 7,035,000
7,889,625
NETHERLAND - 4.5%
AEGON NV 43,873 3,507,884
ELSEVIER 456,174 4,630,179
EQUANT* 36,043 3,065,908
PHILIPS ELECTRONICS 12,358 2,077,945
13,281,916
NEW ZEALAND - 1.1%
TELECOM CORPORATION OF NEW ZEALAND 720,000 3,254,019
NORWAY - 2.5%
CHRISTIANIA BANK 559,717 2,904,176
TOMRA SYSTEMS ASA 228,866 4,581,929
7,486,105
SINGAPORE - 1.0%
CITY DEVELOPMENTS 287,000 1,299,363
SINGAPORE PRESS 94,000 1,499,124
ST. ASSEMBLY TEST SERVICES, LTD*. 38,000 187,580
2,986,067
<PAGE>
EQUITY SECURITIES - CONT'D SHARES VALUE
SOUTH AFRICA - 0.8%
COMMUNITY GROWTH FUND # 815,755 $275,774
NEDCOR, LTD. 100,000 2,038,100
2,313,874
SPAIN - 1.3%
BILBAO - VIZCAYA INTERNATIONAL 253,671 3,730,985
SWEDEN - 3.7%
TELEFONAKTIABOLAGET LM ERICSSON 63,073 5,548,494
SKF SERIES B 245,038 5,452,862
11,001,356
SWITZERLAND - 2.9%
SWISSCOM AG 10,689 4,102,374
ZURICH ALLIED 8,709 4,390,256
8,492,630
TAIWAN - 1.0%
TAIWAN SEMICONDUCTOR CO., LTD. (ADR)* 50,000 2,850,000
UNITED KINGDOM - 11.4%
AUTONOMY CORP. PLC* 20,000 3,400,000
BARCLAYS 200,000 5,349,458
BEAZER GROUP 150,459 277,873
BELLWAY 56,440 206,674
BRITISH TELECOM 147,900 2,766,792
CADBURY SCHWEPPES 150,000 981,530
FIRSTGROUP 187,500 516,438
JOHNSON MATTHEY 300,000 3,415,056
KINGFISHER 165,486 1,364,776
MAYFLOWER CORP. 509,200 1,483,577
NORWICH UNION 299,600 2,003,372
PEARSON 70,000 2,431,775
QUADRANT HEALTHCARE * 200,000 148,861
SMITH KLINE BEECHAM 246,700 3,236,435
VODAFONE AIRTOUCH 1,092,700 6,088,909
33,671,526
UNITED STATES - 0.8%
CALYPTE BIOMEDICAL SERIES E (PREFERRED) # * 50,000 153,906
NORTHERN POWER SYSTEMS, SERIES C (PREFERRED) # * 160,000 200,000
PRO FUND INTERNATIONAL # * 2,501 2,501
PROFUND INTERNACIONAL (PREFERRED) # * 247,498 247,498
PROTON ENERGY SYSTEMS, SERIES A (PREFERRED) # * 227,273 454,546
PROTON ENERGY SYSTEMS, SERIES B (PREFERRED) # * 45,137 90,274
PROTON ENERGY SYSTEMS, WARRANTS EXP 8/26/03 # * 15,046 0
R. F. TECHNOLOGY, SERIES A (PREFERRED) # * 38,460 249,990
SOLUZ, INC.# * 10,250 102,500
SOLUZ, INC., WARRANTS EXP 6/1/04 # * 3,125 0
TERRA CAPITAL # * 93,500 93,500
WATER MANAGEMENT SERVICES, INC. SERIES A (PREFERRED) # *
129,032 200,000
<PAGE>
EQUITY SECURITIES - CONT'D SHARES VALUE
UNITED STATES - CONT'D
ZERO EMISSIONS TECH, INC., SERIES A (PREFERRED) # * 90,909 $454,545
ZERO EMISSIONS TECH, INC., SERIES B (PREFERRED) # * 40,000 200,000
2,449,260
TOTAL EQUITY SECURITIES (COST $212,412,188 ) 281,968,055
PRINCIPAL
CORPORATE NOTES - 0.1% AMOUNT
MAYER LABORATORIES, INC., 6.0%, 12/31/01(CONVERTIBLE NOTE) #
$150,000 150,000
SOLUZ DOMINICANA, INC., 9.0%, 8/9/02 # 150,000 110,000
TOTAL CORPORATE NOTES (COST $260,000) 260,000
HIGH SOCIAL IMPACT INVESTMENTS - 1.1%
ACCION INTERNATIONAL CORP., 4.00%, 9/30/04 # 100,000 96,600
CASCADIA REVOLVING LOAN FUND, 4.50%, 4/7/03 # 200,000 188,470
CATHOLIC RELIEF SERVICES, 4.50%, 9/30/03 # 250,000 241,500
ECUMENICAL DEVELOPMENT CORP., 4.00%, 12/31/02 # 150,000 141,753
ENTERPRISE LOAN FUND, 4.00%, 1/12/01 # 100,000 95,144
ETHIOPIAN COMMUNITY DEVELOPMENT COUNCIL, 4.50%, 7/29/01 #
125,000 122,291
FEDERATION OF APPALACHIAN HOUSING ENTERPRISES, 4.50%, 1/13/02 #
200,000 190,928
FOUNDATION FOR INTERNATIONAL COMMUNITY ASSISTANCE, 3.50%, 4/30/01 #
150,000 148,824
FREEDOM FROM HUNGER, 4.50%, 6/28/04 # 100,000 98,297
GREATER NEW HAVEN COMMUNITY LOAN FUND, 4.50%, 9/30/00 #
75,000 72,419
IMPACT SEVEN, 4.50%, 9/30/01 # 300,000 290,451
LATIN AMERICAN CHALLENGE INVESTMENT FUND, 4.00%, 9/30/02 #
200,000 193,200
MCAULEY INSTITUTE COMMUNITY LOAN FUND, 4.50%, 1/13/02 #
85,000 81,144
MENNONITE ECONOMIC DEVELOPMENT ASSOCIATION, 4.00%, 9/30/00 #
200,000 192,642
MINNESOTA NON-PROFIT ASSISTANCE FUND, 4.00%, 10/1/01 # 100,000 96,274
NEW MEXICO COMMUNITY LOAN FUND, 4.50%, 7/15/01 # 200,000 196,594
PROGRAM FOR APPROPRIATE TECHNOLOGY AND HEALTH, 4.00%, 3/31/03 #
300,000 281,427
RURAL COMMUNITY ASSISTANCE CORP., 4.00%, 7/15/01 # 200,000 195,366
SHARED INTEREST, 3.00%, 9/30/02 # 150,000 144,248
SOCIETE D'INVESTISSEMENT ET DE DEVELOPPEMENT INTERNATIONAL,
4.00%, 6/30/00 # 250,000 245,088
TOTAL HIGH IMPACT SOCIAL INVESTMENT (COST $3,435,000)
3,312,660
CERTIFICATES OF DEPOSIT - 0.1%
BANCO SOLIDARIO CO., 8.47%, 8/21/00 # 53,819 53,491
SOUTH SHORE BANK, 6.30%, 2/8/01 # 200,000 199,129
TOTAL CERTIFICATES OF DEPOSIT (COST $253,819) 252,620
<PAGE>
PRINCIPAL
TIME DEPOSITS - 2.3% AMOUNT VALUE
CAPITAL MARKETS, LONDON, 6.125%, 4/3/00 $ 6,638,616 $ 6,638,616
TOTAL TIME DEPOSIT (COST $6,638,616 ) 6,638,616
TOTAL INVESTMENTS (COST $222,999,623 ) - 99.1% 292,431,951
OTHER ASSETS IN EXCESS OF LIABILITIES, NET - 0.9% 2,797,474
NET ASSETS - 100% $295,229,425
NET ASSETS CONSIST OF :
PAID-IN CAPITAL APPLICABLE TO THE FOLLOWING SHARES OF COMMON STOCK WITH
250,000,000 SHARES OF $0.01 PAR VALUE SHARE AUTHORIZED FOR
CLASS A, B AND C COMBINED:
CLASS A : 10,957,344 SHARES OUTSTANDING $183,578,551
CLASS B : 213,213 SHARES OUTSTANDING 4,643,955
CLASS C : 522,746 SHARES OUTSTANDING 9,637,862
CLASS I : 164,164 SHARES OUTSTANDING 3,366,430
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) (1,063,882)
ACCUMULATED NET REALIZED GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCIES 25,637,783
NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS
AND ASSETS AND LIABILITIES IN FOREIGN CURRENCIES 69,428,726
NET ASSETS $295,229,425
NET ASSET VALUE PER SHARE
CLASS A (BASED ON NET ASSETS OF $273,554,261) $24.97
CLASS B (BASED ON NET ASSETS OF $5,216,126) $24.46
CLASS C (BASED ON NET ASSETS OF $12,325,469) $23.58
CLASS I (BASED ON NET ASSETS OF $4,133,569) $25.18
ABBREVIATIONS:
ADR: AMERICAN DEPOSITARY RECEIPT
# THIS SECURITY WAS VALUED BY THE BOARD OF DIRECTORS. SEE NOTE A.
RESTRICTED SECURITIES REPRESENTS 2.2% OF NET ASSETS OF THE FUND.
* NON-INCOME PRODUCING.
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED MARCH 31, 2000
NET INVESTMENT INCOME
INVESTMENT INCOME:
DIVIDEND INCOME (NET OF FOREIGN TAXES WITHHELD OF $116,743) $1,014,171
INTEREST INCOME 374,582
TOTAL INVESTMENT INCOME 1,388,753
EXPENSES:
INVESTMENT ADVISORY FEE 1,023,661
TRANSFER AGENCY FEES AND EXPENSES 299,321
DISTRIBUTION PLAN EXPENSES:
CLASS A 318,597
CLASS B 20,831
CLASS C 55,744
DIRECTORS' FEES AND EXPENSES 17,814
ADMINISTRATIVE FEES 491,104
CUSTODIAN FEES 196,143
REGISTRATION FEES 31,533
REPORTS TO SHAREHOLDERS 58,925
PROFESSIONAL FEES 14,732
MISCELLANEOUS 21,265
TOTAL EXPENSES 2,549,670
REIMBURSEMENT FROM ADVISOR:
CLASS I (7,825)
FEES PAID INDIRECTLY (89,210)
NET EXPENSES 2,452,635
NET INVESTMENT INCOME (LOSS) (1,063,882)
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
NET REALIZED GAIN (LOSS) ON:
INVESTMENTS 31,195,146
FOREIGN CURRENCY TRANSACTIONS (95,592)
31,099,554
CHANGE IN UNREALIZED APPRECIATION OR (DEPRECIATION) ON:
INVESTMENTS AND FOREIGN CURRENCIES 17,018,979
ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES (154,581)
16,864,398
NET REALIZED AND UNREALIZED GAIN
(LOSS) 47,963,952
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $46,900,070
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS
ENDED YEAR ENDED
MARCH 31, SEPTEMBER 30,
INCREASE (DECREASE) IN NET ASSETS 2000 1999
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ($1,063,882) ($2,348)
NET REALIZED GAIN (LOSS) 31,099,554 8,165,911
CHANGE IN UNREALIZED APPRECIATION OR (DEPRECIATION)
16,864,398 47,554,979
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 46,900,070 55,718,542
DISTRIBUTIONS TO SHAREHOLDERS FROM
NET INVESTMENT INCOME:
CLASS A SHARES - (743,656)
NET REALIZED GAIN:
CLASS A SHARES (10,049,932) (16,205,133)
CLASS B SHARES (159,824) (110,135)
CLASS C SHARES (453,616) (710,924)
CLASS I SHARES (143,171) -
TOTAL DISTRIBUTIONS (10,806,543) (17,769,848)
CAPITAL SHARE TRANSACTIONS:
SHARES SOLD:
CLASS A SHARES 166,689,879 109,618,536
CLASS B SHARES 1,695,349 2,196,322
CLASS C SHARES 1,598,213 1,906,038
CLASS I SHARES 927,550 2,910,264
REINVESTMENT OF DISTRIBUTIONS:
CLASS A SHARES 9,180,173 15,533,502
CLASS B SHARES 143,029 97,140
CLASS C SHARES 426,660 671,801
CLASS I SHARES 63,006 -
SHARES REDEEMED:
CLASS A SHARES (167,657,497) (124,838,113)
CLASS B SHARES (234,441) (282,393)
CLASS C SHARES (801,364) (2,236,036)
CLASS I SHARES (325,400) (208,990)
TOTAL CAPITAL SHARE TRANSACTIONS 11,705,157 5,368,071
TOTAL INCREASE (DECREASE) IN NET ASSETS 47,798,684 43,316,765
NET ASSETS
BEGINNING OF PERIOD 247,430,741 204,113,976
END OF PERIOD (INCLUDING UNDISTRIBUTED NET INVESTMENT
INCOME (LOSS) OF ($1,063,882) AND $0, RESPECTIVELY)
$295,229,425 $247,430,741
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS
ENDED YEAR ENDED
MARCH 31, SEPTEMBER 30,
CAPITAL SHARE ACTIVITY 2000 1999
SHARES SOLD:
CLASS A SHARES 6,962,376 5,267,611
CLASS B SHARES 71,595 106,178
CLASS C SHARES 69,676 96,208
CLASS I SHARES 38,264 146,520
REINVESTMENT OF DISTRIBUTIONS:
CLASS A SHARES 376,532 777,387
CLASS B SHARES 5,977 4,884
CLASS C SHARES 18,494 35,100
CLASS I SHARES 2,569 -
SHARES REDEEMED:
CLASS A SHARES (6,957,946) (5,978,314)
CLASS B SHARES (9,639) (13,370)
CLASS C SHARES (35,185) (112,670)
CLASS I SHARES (13,330) (9,859)
TOTAL CAPITAL SHARE ACTIVITY 529,383 319,675
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
NOTE A - SIGNIFICANT ACCOUNTING POLICIES
GENERAL: THE CALVERT WORLD VALUES INTERNATIONAL EQUITY FUND (THE "FUND"), A
SERIES OF CALVERT WORLD VALUES FUND, INC., IS REGISTERED UNDER THE INVESTMENT
COMPANY ACT OF 1940 AS A DIVERSIFIED, OPEN-END MANAGEMENT INVESTMENT COMPANY.
THE 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. CLASS B AND CLASS C SHARES HAVE HIGHER LEVEL 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 DIFFERENCE IN DISTRIBUTION PLAN EXPENSES AND OTHER
CLASS-SPECIFIC EXPENSES, (B) EXCHANGE PRIVILEGES AND (C) CLASS-SPECIFIC VOTING
RIGHTS.
SECURITY VALUATION: SECURITIES LISTED OR TRADED ON A NATIONAL SECURITIES
EXCHANGE ARE VALUED AT THE LAST REPORTED SALE PRICE. UNLISTED SECURITIES AND
LISTED SECURITIES FOR WHICH THE LAST SALE PRICE IS NOT AVAILABLE ARE VALUED AT
THE MOST RECENT BID PRICE OR BASED ON A YIELD EQUIVALENT OBTAINED FROM THE
SECURITIES' MARKET MAKER. FOREIGN SECURITY PRICES, FURNISHED BY QUOTATION
SERVICES IN THE SECURITY'S LOCAL CURRENCY, ARE TRANSLATED USING THE CURRENT U.S.
DOLLAR EXCHANGE RATE. THE FUND MAY INVEST IN SECURITIES WHOSE RESALE IS SUBJECT
TO RESTRICTIONS. INVESTMENTS FOR WHICH MARKET QUOTATIONS ARE NOT AVAILABLE OR
DEEMED INAPPROPRIATE ARE VALUED IN GOOD FAITH UNDER THE DIRECTION OF THE BOARD
OF DIRECTORS.
IN DETERMINING FAIR VALUE, THE BOARD CONSIDERS ALL RELEVANT QUALITATIVE AND
QUANTITATIVE INFORMATION AVAILABLE. THESE FACTORS ARE SUBJECT TO CHANGE OVER
TIME AND ARE REVIEWED PERIODICALLY. THE VALUES ASSIGNED TO FAIR VALUE
INVESTMENTS ARE BASED ON AVAILABLE INFORMATION AND DO NOT NECESSARILY REPRESENT
AMOUNTS THAT MIGHT ULTIMATELY BE REALIZED, SINCE SUCH AMOUNTS DEPEND ON FUTURE
DEVELOPMENTS INHERENT IN LONG-TERM INVESTMENTS. FURTHER, BECAUSE OF THE INHERENT
UNCERTAINTY OF VALUATION, THOSE ESTIMATED VALUES MAY DIFFER SIGNIFICANTLY FROM
THE VALUES THAT WOULD HAVE BEEN USED HAD A READY MARKET OF THE INVESTMENTS
EXISTED, AND THE DIFFERENCES COULD BE MATERIAL.
AT MARCH 31, 2000, $6,550,314, OR 2.2% OF NET ASSETS, WERE VALUED BY THE BOARD
OF DIRECTORS.
SECURITY TRANSACTIONS AND INVESTMENT INCOME: SECURITY TRANSACTIONS ARE ACCOUNTED
FOR ON TRADE DATE. REALIZED GAINS AND LOSSES ARE RECORDED ON AN IDENTIFIED COST
BASIS. DIVIDEND INCOME IS RECORDED ON THE EX-DIVIDEND DATE OR, IN THE CASE OF
DIVIDENDS ON CERTAIN FOREIGN SECURITIES, AS SOON AS THE FUND IS INFORMED OF THE
EX-DIVIDEND DATE. INTEREST INCOME, ACCRETION OF DISCOUNT AND AMORTIZATION OF
PREMIUM ARE RECORDED ON AN ACCRUAL BASIS. 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.
<PAGE>
FOREIGN CURRENCY TRANSACTIONS: THE FUND'S ACCOUNTING RECORDS ARE MAINTAINED IN
U. S. DOLLARS. FOR VALUATION OF ASSETS AND LIABILITIES ON EACH DATE OF NET ASSET
VALUE DETERMINATION, FOREIGN DENOMINATIONS ARE CONVERTED INTO U.S.
DOLLARS USING THE CURRENT EXCHANGE RATE. SECURITY TRANSACTIONS, INCOME AND
EXPENSES ARE TRANSLATED AT THE PREVAILING RATE OF EXCHANGE ON THE DATE OF THE
EVENT. THE EFFECT OF CHANGES IN FOREIGN EXCHANGE RATES ON SECURITIES IS INCLUDED
IN THE NET REALIZED AND UNREALIZED GAIN OR LOSS ON SECURITIES.
DISTRIBUTIONS TO SHAREHOLDERS: DISTRIBUTIONS TO SHAREHOLDERS ARE RECORDED BY THE
FUND ON EX-DIVIDEND DATE. DIVIDENDS FROM NET INVESTMENT INCOME AND DISTRIBUTIONS
FROM
NET REALIZED CAPITAL GAINS, IF ANY, ARE PAID AT LEAST ANNUALLY. DISTRIBUTIONS
ARE DETERMINED
IN ACCORDANCE WITH INCOME TAX REGULATIONS WHICH MAY DIFFER FROM GENERALLY
ACCEPTED ACCOUNTING PRINCIPLES; ACCORDINGLY, PERIODIC RECLASSIFICATIONS ARE MADE
WITHIN THE FUND'S CAPITAL ACCOUNTS TO REFLECT INCOME AND GAINS AVAILABLE FOR
DISTRIBUTION UNDER INCOME
TAX REGULATIONS.
ESTIMATES: THE PREPARATION OF THE FINANCIAL STATEMENTS IN CONFORMITY WITH
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES REQUIRES MANAGEMENT TO MAKE ESTIMATES
AND ASSUMPTIONS THAT AFFECT THE REPORTED AMOUNT OF ASSETS AND LIABILITIES AND
DISCLOSURE OF CONTINGENT ASSETS AND LIABILITIES AT THE DATE OF THE FINANCIAL
STATEMENTS AND THE REPORTED AMOUNTS OF INCOME AND EXPENSES DURING THE REPORTED
PERIOD. ACTUAL RESULTS COULD DIFFER FROM THOSE ESTIMATES.
EXPENSE OFFSET ARRANGEMENT: THE FUND HAS AN ARRANGEMENT WITH ITS CUSTODIAN BANK
WHEREBY THE CUSTODIAN'S 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 CONTINUE 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 THE FOLLOWING
ANNUAL RATES OF AVERAGE DAILY NET ASSETS: .75% ON THE FIRST $250 MILLION, .725%
ON THE NEXT $250 MILLION AND .675% ON THE EXCESS OF $500 MILLION. UNDER THE
TERMS OF THE AGREEMENT, $282,539 WAS PAYABLE AT PERIOD END.
THE ADVISOR CONTRACTUALLY REIMBURSED THE FUND FOR EXPENSES OF $7,825.
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%, 1.0% AND 1.0% ANNUALLY OF AVERAGE DAILY NET ASSETS OF EACH CLASS A,
CLASS B AND CLASS C SHARES, RESPECTIVELY. CLASS I SHARES DO NOT HAVE
DISTRIBUTION PLAN EXPENSES. UNDER THE TERMS OF THE AGREEMENT, $72,014
WAS PAYABLE AT PERIOD END.
<PAGE>
THE DISTRIBUTOR RECEIVED $13,378 AS ITS PORTION OF COMMISSIONS CHARGED ON SALES
OF THE FUND'S SHARES.
CALVERT SHAREHOLDER SERVICES, INC. ("CSSI"), AN AFFILIATE OF THE ADVISOR, IS THE
SHAREHOLDER SERVICING AGENT FOR THE FUND. FOR ITS SERVICES, CSSI RECEIVED A FEE
OF $74,554 FOR THE PERIOD ENDED MARCH 31, 2000. UNDER THE TERMS OF THE
AGREEMENT, $13,151 WAS PAYABLE AT PERIOD END. NATIONAL FINANCIAL DATA SERVICES,
INC., IS THE TRANSFER AND DIVIDEND DISBURSING AGENT.
CALVERT ADMINISTRATIVE SERVICES COMPANY, AN AFFILIATE OF THE ADVISOR, PROVIDES
ADMINISTRATIVE SERVICES TO THE FUND FOR AN ANNUAL FEE, PAYABLE MONTHLY, OF .35%
FOR CLASS A, CLASS B AND CLASS C SHARES AND .15% FOR CLASS I SHARES, BASED ON
THEIR AVERAGE DAILY NET ASSETS. UNDER THE TERM OF THE AGREEMENT, $88,584 WAS
PAYABLE AT PERIOD END.
THE CALVERT SOCIAL INVESTMENT FOUNDATION ("CSI FOUNDATION") PROVIDES CERTAIN
ADMINISTRATIVE SERVICES TO THE FUND. THESE SERVICES INCLUDE A DUE DILIGENCE
REVIEW FOR EACH POTENTIAL ORGANIZATION WHICH IS BEING CONSIDERED FOR A HIGH
SOCIAL IMPACT INVESTMENT ("HSI INVESTMENT"). THE SERVICES ALSO INCLUDE AN ANNUAL
REVIEW THEREAFTER, INVESTMENT MONITORING, QUARTERLY REPORTING TO THE FUND BOARD,
NOTIFICATION OF ANY EVENT OF INFORMATION THAT MAY AFFECT THE VALUE OF AN
INVESTMENT, AND OTHER INCIDENTAL SERVICES. FOR PROVIDING SUCH SERVICES, THE CSI
FOUNDATION RECEIVES AN ANNUAL FEE, PAID QUARTERLY OF 1.00% OF THE FUND'S AVERAGE
DAILY NET ASSETS INVESTED IN HSI INVESTMENTS.
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.
ADDITIONAL FEES OF UP TO $10,000 ANNUALLY MAY BE PAID TO THE CHAIRPERSON OF
SPECIAL COMMITTEES OF THE BOARD. DIRECTOR'S FEES ARE ALLOCATED TO EACH OF THE
FUNDS IN THE SERIES SERVED.
NOTE C - INVESTMENT ACTIVITY
DURING THE PERIOD, PURCHASES AND SALES OF INVESTMENTS, OTHER THAN SHORT-TERM
SECURITIES, WERE $95,174,159 AND $96,229,095, RESPECTIVELY.
THE COST OF INVESTMENTS OWNED AT MARCH 31, 2000 WAS SUBSTANTIALLY THE SAME FOR
FEDERAL INCOME TAX AND FINANCIAL REPORTING PURPOSES. NET UNREALIZED APPRECIATION
AGGREGATED $69,569,199, OF WHICH $79,857,588 RELATED TO APPRECIATED
SECURITIES AND $10,288,389 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 AND CVS AMERITAS INDEX 500
PORTFOLIOS) 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 MARCH 31, 2000.
<PAGE>
FINANCIAL HIGHLIGHTS
PERIODS ENDED
MARCH 31, SEPTEMBER 30, SEPTEMBER 30,
CLASS A SHARES 2000 1999 1998
NET ASSET VALUE, BEGINNING $21.89 $18.57 $22.06
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .79 .01 .06
NET REALIZED AND UNREALIZED GAIN (LOSS) 3.25 4.94 (2.11)
TOTAL FROM INVESTMENT OPERATIONS 4.04 4.95 (2.05)
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.87) (.07) (.06)
NET REALIZED GAIN (LOSS) (.09) (1.56) (1.38)
TOTAL DISTRIBUTIONS (0.96) (1.64) (1.44)
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE
3.08 3.32 (3.49)
NET ASSET VALUE, ENDING $24.97 $21.89 $18.57
TOTAL RETURN* 18.57% 27.53% (9.29%)
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME (LOSS) (.73%) (A) .04% .27%
TOTAL EXPENSES 1.81% (A) 1.87% 1.86%
EXPENSES BEFORE OFFSETS 1.81% (A) 1.87% 1.86%
NET EXPENSES 1.75% (A) 1.83% 1.80%
PORTFOLIO TURNOVER 37% 82% 84%
NET ASSETS, ENDING (IN THOUSANDS) $273,554 $231,516 $195,192
YEARS ENDED
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
CLASS A SHARES 1997 1996 1995
NET ASSET VALUE, BEGINNING $18.62 $17.62 $17.99
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .10 .04 .11
NET REALIZED AND UNREALIZED GAIN (LOSS) 3.81 1.53 .38
TOTAL FROM INVESTMENT OPERATIONS 3.91 1.57 .49
DISTRIBUTIONS FROM
NET INVESTMENT INCOME (.05) (.13) -
EXCESS OF NET INVESTMENT INCOME - - -
NET REALIZED GAINS (.42) (.44) (.86)
TOTAL DISTRIBUTIONS (.47) (.57) (.86)
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE
3.44 1.00 (.37)
NET ASSET VALUE, ENDING $22.06 $18.62 $17.62
TOTAL RETURN* 21.44% 9.22% 3.19%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME (LOSS) .51% .23% .68%
TOTAL EXPENSES 1.91% 1.95% 1.93%
EXPENSES BEFORE OFFSETS 1.91% 1.95% 1.93%
NET EXPENSES 1.76% 1.81% 1.79%
PORTFOLIO TURNOVER 58% 96% 73%
NET ASSETS, ENDING (IN THOUSANDS) $225,169 $194,032 $191,586
<PAGE>
FINANCIAL HIGHLIGHTS
PERIODS ENDED
MARCH 31, SEPTEMBER 30, SEPTEMBER 30,
CLASS B SHARES 2000 1999 1998^
NET ASSET VALUE, BEGINNING $21.56 $18.48 $21.83
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .69 (.15) (.05)
NET REALIZED AND UNREALIZED GAIN (LOSS) 3.17 4.79 (3.30)
TOTAL FROM INVESTMENT OPERATIONS 3.86 4.64 (3.35)
DISTRIBUTIONS FROM:
NET INVESTMENT INCOME (.87) - -
NET REALIZED GAINS (.09) (1.56) --
TOTAL DISTRIBUTIONS (.96) (1.56) --
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE
2.90 3.08 (3.35)
NET ASSET VALUE, ENDING $24.46 $21.56 $18.48
TOTAL RETURN* 18.01% 25.84% (15.35%)
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME (LOSS) (1.85%) (A) (1.20%) (.99%)(A)
TOTAL EXPENSES 2.97% (A) 3.62% 6.11%(A)
EXPENSES BEFORE OFFSETS 2.97% (A) 3.20% 3.22%(A)
NET EXPENSES 2.91% (A) 3.16% 3.16%(A)
PORTFOLIO TURNOVER 37% 82% 84%
NET ASSETS, ENDING (IN THOUSANDS) $5,216 $3,133 $879
<PAGE>
FINANCIAL HIGHLIGHTS
PERIODS ENDED
MARCH 31, SEPTEMBER 30, SEPTEMBER 30,
CLASS C SHARES 2000 1999 1998
NET ASSET VALUE, BEGINNING $20.81 $17.83 $21.39
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .70 (.17) (.13)
NET REALIZED AND UNREALIZED GAIN (LOSS) 3.03 4.71 (2.05)
TOTAL FROM INVESTMENT OPERATIONS 3.73 4.54 (2.18)
DISTRIBUTIONS FROM:
NET INVESTMENT INCOME (.87) - -
NET REALIZED GAIN (LOSS) (.09) (1.56) (1.38)
TOTAL DISTRIBUTIONS (.96) (1.56) (1.38)
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE
2.77 2.98 (3.56)
NET ASSET VALUE, ENDING $23.58 $20.81 $17.83
TOTAL RETURN* 18.04% 26.25% (10.22%)
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME (LOSS) (1.65%) (A) (.92%) (.79%)
TOTAL EXPENSES 2.74% (A) 2.83% 2.91%
EXPENSES BEFORE OFFSETS 2.74% (A) 2.83% 2.91%
NET EXPENSES 2.67% (A) 2.80% 2.85%
PORTFOLIO TURNOVER 37% 82% 84%
NET ASSETS, ENDING (IN THOUSANDS) $12,325 $9,777 $8,043
YEARS ENDED
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
CLASS C SHARES 1997 1996 1995
NET ASSET VALUE, BEGINNING $18.20 $17.28 $17.86
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME (.07) (.15) (.05)
NET REALIZED AND UNREALIZED GAIN (LOSS) 3.68 1.51 .32
TOTAL FROM INVESTMENT OPERATIONS 3.61 1.36 .27
DISTRIBUTIONS FROM
NET REALIZED GAINS (.42) (.44) (.85)
TOTAL DISTRIBUTIONS (.42) (.44) (.85)
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE
3.19 .92 (.58)
NET ASSET VALUE, ENDING $21.39 $18.20 $17.28
TOTAL RETURN* 20.22% 8.07% 1.95%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME (LOSS) (.42%) (.88%) (.47%)
TOTAL EXPENSES 2.91% 3.08% 3.25%
EXPENSES BEFORE OFFSETS 2.91% 3.08% 3.12%
NET EXPENSES 2.76% 2.93% 2.99%
PORTFOLIO TURNOVER 58% 96% 73%
NET ASSETS, ENDING (IN THOUSANDS) $8,799 $6,779 $6,061
<PAGE>
FINANCIAL HIGHLIGHTS
PERIOD ENDED
MARCH 31, SEPTEMBER 30,
CLASS I SHARES 2000 1999#
NET ASSET VALUE, BEGINNING $21.99 $19.91
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME .87 .15
NET REALIZED AND UNREALIZED GAIN (LOSS) 3.28 1.93
TOTAL FROM INVESTMENT OPERATIONS 4.15 2.08
DISTRIBUTIONS FROM:
NET INVESTMENT INCOME (.87) -
NET REALIZED AND UNREALIZED GAIN (LOSS) (.09) -
TOTAL DISTRIBUTIONS (.96) -
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE 3.19 2.08
NET ASSET VALUE, ENDING $25.18 $21.99
TOTAL RETURN* 19.00% 10.45%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME (LOSS) (.02%) (A) 1.19% (A)
TOTAL EXPENSES 1.55% (A) 1.53% (A)
EXPENSES BEFORE OFFSETS 1.12% (A) 1.09% (A)
NET EXPENSES 1.05% (A) 1.05% (A)
PORTFOLIO TURNOVER 37% 82%
NET ASSETS, ENDING (IN THOUSANDS) $4,134 $3,006
(A) ANNUALIZED
* TOTAL RETURN IS NOT ANNUALIZED FOR PERIODS LESS THAN ONE YEAR AND DOES NOT
REFLECT DEDUCTION OF ANY FRONT-END OR DEFERRED SALES CHARGE.
^ FROM APRIL 1, 1998 INCEPTION.
# FROM MARCH 1, 1999 INCEPTION.
<PAGE>
CALVERT WORLD VALUES INTERNATIONAL EQUITY FUND
TO OPEN AN ACCOUNT
800-368-2748
YIELDS AND PRICES
CALVERT INFORMATION NETWORK
(24 HOURS, 7 DAYS A WEEK)
800-368-2745
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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
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