Calvert New Africa Fund
Semi-Annual Report
September 30, 1995
Investing with Vision (TM) (logo) Calvert Group(R)
A member of the Acacia Group(R)
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Underwriter:
Calvert Distributors, Inc.
4550 Montgomery Avenue
Suite 1000N
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.
Semi-Annual Report_September 30, 1995
CalverT New Africa Fund
Dear Shareholder:
This is the first semi-annual report for the Calvert New Africa Fund.
It covers the six-month period ending September 30, 1995.
The Calvert New Africa Fund's objective is to seek long-term capital
appreciation. We believe that investing in rapidly growing securities of
companies that are growing at a faster pace than their target economy will
produce superior investment returns over time for our shareholders. Our
task is to find growth companies valued at reasonable prices in stable
political and economic environments. Our challenge is to own these
securities at the most opportune time over the long term, provided the
fundamentals of the country and company we have invested in remain
positive. The Calvert New Africa Fund is driven by these basic tenets.
Market Review
The conclusion of the third quarter of 1995 marked the first full
quarter of investment activity for the Calvert New Africa Fund. The Fund
gained 1.27% during the quarter. The six-month period ended September 30,
1995 was a sluggish time for emerging markets. Despite the attractiveness
of the African emerging markets, they suffered along with markets in Asia
and Latin America as investors painted all emerging markets with a broad
brush in the aftermath of the Mexican peso debacle and the collapse of
Berrings Bank. The Fund is currently invested in South Africa, Ghana, Kenya
and Zimbabwe. For the quarter, South Africa was up 3.98%, Ghana was down
4.3%, Kenya was down 17.9% and Zimbabwe was up 5.4%.
As of September 30, 1995, the Fund was 40% invested in equities with
the remainder in cash. Our current asset mix is in no way an indication of
a negative stance on the African markets. Instead, the Fund experienced a
heavy inflow of cash toward the end of the month, which we were unable to
invest before the end of the quarter. Our policy is to be fully invested
unless market conditions dictate otherwise. We continue to be bullish on
the prospects of several markets in Africa and anticipate the Fund will-
be fully invested in the very near future. Thus far, the Fund's heaviest
weighting is South Africa _ 43% of the Portfolio is in South African
stocks. The remaining 2% is spread among stock in Ghana, Kenya and
Zimbabwe.
Investment Performance
From 4/12/95 through 9/30/95
New Africa Fund -.50%
Morgan Stanley South Africa Index 5.36%
Investment performance is for Class A shares and does not reflect the
deduction of any front-end sales charges.
The portfolio holds a wide variety of stocks from gold mining (Ashanti
Goldfields) to consumer product companies (South African Breweries) to
banks (Diamond Trust). We believe these companies offer superior growth
potential because of a dominant position in the market they serve, superior
management or both.
Investment Themes and Strategies
Our team of investment professionals has constructed the portfolio to
take advantage of two overriding themes:
1. A worldwide commodity turnaround _ As the global economic
expansion continues, we believe that producers of primary products will
benefit by supplying the world with much needed natural resources for
infrastructure rebuilding. South Africa is a beneficiary of this trend
because of its dominant position in providing minerals to the rest of the
world. Through July, the portfolio's weighting in the mining producers and
base metal sector did not produce favorable results as South African
goldshares underperformed. The fortunes of the gold mining industry are a
vital component of the economic climate in South Africa. During the first
half of 1995, the gold mining industry suffered from a loss of
self-confidence as production fell by 11% compared to the same period in
1994. As a result, several companies reported less than stellar financial
performances, which led to a decline in share prices. The country's
fortunes have improved and we believe this will have a positive impact on
the mining related stocks in the portfolio going forward.
2. A revival of the consumer _ We believe that the sea change from
centralized government economies (e.g., socialist and apartheid political
structures) to market oriented economies will produce the impetus to revive
consumer spending. We think the favorable demographic outlook and pent-up
demand for consumer goods will spawn several growth industries in selected
African countries. Our emphasis is on the following industries: consumer
products, healthcare, non-capital intensive manufacturing, tourism, t-
elecommunications and services. Several of the Portfolio's securities _
including Teljoy holdings, Afcol, Premier Pharmaceutical, Dimension Data
and City Lodge Hotels _ highlight this strategy.
Outlook
As we enter the final quarter of 1995, there are reasons to be
optimistic about market conditions. A rebound in selected markets from very
depressed levels is likely in the fourth quarter. We are bullish on the
South African economy and market. The economy has been growing slowly since
1993, but has picked up this year and is likely to continue to accelerate
into 1996. Gross Domestic Product should increase by 3.5% this year and 5%
next year. The agricultural sector, which has been a drag on economic gro-
wth this year because of the drought, should contribute positively to GDP
next year. Higher gold output is also expected in 1996 because of increased
efficiency and the successful conclusion of wage negotiations with the
mineworkers union. The inflation outlook remains favorable while interest
rates have come off their peak levels from earlier this year. Most
importantly, corporate profits are forecast to increase by 20%. Given these
positives, we believe the market is setting up for a rally later in the -
year.
In Ghana, a wave of privatizations, including banks, should help
offset recent government spending. GDP growth is forecast to be in the
neighborhood of 5%. Valuation of most companies remains reasonable. The
Kenyan market has corrected following the big run-up in 1994. However, some
companies remain attractive. Our recent investment in two Kenyan stocks,
Uchumi and Diamond Trust, is based on our belief that the market will soon
rebound. Finally, we invested in shares of the Delta Corporation, a
Zimbabwe company with major holdings in some of the fastest growing sectors
in the economy.
We have just concluded our due diligence trip to Morocco, Egypt and
Cote D'Ivoire. We plan to begin investing in these areas during the
upcoming quarter. The Fund's Pan-African focus should afford us the ability
to diversify the portfolio to reduce risk and achieve superior long-term
results.
Thank you for your confidence in the Calvert New Africa Fund. We look
forward to helping your investment grow.
Sincerely,
(signature)
Clifton S. Sorrell
President
Portfolio Statistics
Ten Largest Stock Holdings
as of September 30, 1995
% of Net Assets
Samancor Ltd. 3.8%
Liberty Life Assoc. of Africa 3.8%
Bidvest Group Ltd. 3.0%
Trans Natal Coal Corp., Ltd. 2.6%
Anglo American Corp., S.A. 2.5%
Impala Platinum Holdings, Ltd. 2.5%
South Africa Brews 1.4%
Beatrix Mines Ltd. 1.4%
Kloof Gold Mining Co., Ltd. 1.3%
Western Deep Levels Ltd. 1.2%
Total 23.5%
Cumulative Total Returns
for periods ended September 30, 1995
Class A Shares
Since Inception (4/95) -3.01%
Total returns assume reinvestment of dividends and reflect the deduction of
the Fund's maximum sales charge of 2.50%. Past performance is no guarantee
of future results.
Calvert New Africa Fund
Portfolio of Investments
September 30, 1995 (Unaudited)
Equity Securities (39.7%) Shares Value
Ghana (0.8%)
Ashanti Goldfields Co., Ltd. <F1> 2,500 $51,436
51,436
Kenya (0.7%)
Diamond TST 25,000 22,462
Uchumi Supermarkets Ltd. 35,000 27,987
50,449
South Africa (38.0%)
Amalg Beverage Industries 5,300 26,487
Anglo American Corp., S.A. 3,200 177,447
Anglovaal 600 22,181
Assoc Furniture Cos., Ltd. 7,300 55,473
Beatrix Mines Ltd. 10,100 96,802
Bidvest Group Ltd. 36,400 209,321
City Lodge Hotels Ltd. 10,100 67,761
Conshu Holdings Ltd. 35,272 60,368
Dimension Data Holdings Ltd. <F1> 8,300 68,185
Driefontein Consolidated Ltd. 6,400 87,190
Impala Platinum Holdings Ltd. 7,100 175,954
Investec Bank Ltd. 3,100 62,394
Iron & Steel Industries Corp. 75,624 81,799
Kloof Gold Mining Co., Ltd. 8,100 90,387
Liberty Life Association of Africa 10,400 263,432
Nampak Ltd. 13,300 61,915
Premier Pharmaceuticals Ltd. 11,555 69,612
RMB Holdings Ltd. 6,600 62,353
Rustenburg Platinum Holdings 4,000 87,080
Samancor Ltd. 19,400 265,622
South Africa Brews 3,100 97,623
Teljoy Holdings Ltd. 43,468 79,751
Tiger Oats Ltd. 4,100 59,505
Toco Holdings Ltd. <F1> 76,878 67,367
Trans Natal Coal Corp., Ltd. 23,900 183,252
Western Deep Levels Ltd. 2,500 87,628
2,666,889
Equity Securities (Cont'd) Shares Value
Zimbabwe (0.2%)
Delta Corp. 10,000 $15,298
15,298
Total Equity Securities (Cost $2,748,764) 2,784,072
Total Investments (39.7%) <F3>
(Cost $2,748,764) <F2> $2,784,072
[FN]
Notes to Portfolio of Investments:
<F1> These equity securities have not declared dividends in the past
twelve months.
<F2> Cost of investments is substantially the same for federal income tax
purposes.
<F3> The percentages shown represent the percentage of the investments to
net assets.
[/FN]
Calvert New Africa Fund
Statement of Assets and Liabilities
September 30, 1995 (Unaudited)
Assets
Investments in securities, at value -
see accompanying portfolio $2,784,072
Cash 5,397,743
Receivable for securities sold 1,265,733
Receivable for shares sold 24,737
Dividends receivable 3,654
Deferred organization expenses 61,848
Other assets 4,685
Total assets 9,542,472
Liabilities
Payable for securities purchased 2,450,728
Payable to Calvert-Sloan Advisers, L.L.C. 7,153
Payable to Calvert Shareholder Services, Inc. 768
Payable to Calvert Distributors, Inc. 2,340
Accrued expenses and other liabilities 64,856
Total liabilities 2,525,845
Net assets $7,016,627
Net Assets
Net assets consist of:
Paid-in capital applicable to 587,785 outstanding shares
of common stock, $0.01 par value (250,000,000 shares
authorized) $6,999,178
Undistributed net investment income (loss) (14,263)
Accumulated realized gains (losses) on investments and
foreign currencies (1,009)
Net unrealized appreciation (depreciation) on investments
and assets and liabilities in foreign currencies 32,721
Net assets $7,016,627
Net Assets Value and Offering Price Per Share
Net asset value per share
($7,016,627 divided by 587,785 Shares) $11.94
Maximum sales charge (2.50% of offering price) .31
Offering price per share $12.25
See notes to financial statements.
Calvert New Africa Fund
Statement of Operations
From Inception (April 12, 1995)
Through September 30, 1995 (Unaudited)
Net Investment Income
Investment Income
Dividend income (net of foreign taxes of $1,245) $7,455
Total investment income 7,455
Expenses
Investment advisory fee 9,499
Transfer agency fees and expenses 2,715
Distribution Plan expenses 4,750
Directors' fees and expenses 11,064
Administrative fees 1,583
Custodian fees 8,291
Registration fees 1,278
Reports to shareholders 2,279
Professional fees 3,524
Miscellaneous 9,532
Reimbursement from Advisor (24,506)
Total expenses 30,009
Fees paid indirectly (8,291)
Net expenses 21,718
Net Investment Income (Loss) (14,263)
Realized and Unrealized Gain (Loss)
on Investments
Net realized gain (loss) on:
Securities _
Foreign currencies (1,009)
(1,009)
Change in unrealized appreciation or depreciation on:
Securities 33,474
Assets and liabilities in foreign currencies (753)
32,721
Net Realized and Unrealized Gain
(Loss) on Investments 31,712
Increase (Decrease) in Net Assets
Resulting From Operations $17,449
See notes to financial statements.
Calvert New Africa Fund
Statement of Changes in Net Assets
From Inception
April 12, 1995
Through
September 30,
1995
(Unaudited)
Increase (Decrease) in Net Assets
Operations
Net investment income $(14,263)
Net realized gain (loss) (1,009)
Change in unrealized appreciation or depreciation 32,721
Increase (Decrease) in Net Assets
Resulting From Operations 17,449
Capital share transactions 6,999,178
Total Increase (Decrease) in Net Assets 7,016,627
Net Assets
Beginning of period _
End of period (including undistributed net investment
income (loss) of ($14,263). $7,016,627
See notes to financial statements.
Notes to Financial Statements (Unaudited)
Note A_Significant Accounting Policies
General: The Calvert New Africa Fund (the "Fund"), the sole series of
Calvert New World Fund, Inc., is registered under the Investment Company
Act of 1940 as a non-diversified, open-end management investment company.
The Fund was organized as a Maryland corporation on December 22, 1994 and
began operations on April 12, 1995. The Fund shares of capital stock are
sold with a maximum front-end sales charge of 2.5%. Redemptions of shares
held in the Fund for less than 2 years are subject to a 2% fee paid to the
Fund.
Security Valuation: Securities for which market quotations are readily
available are valued at the most recent closing price of their primary
exchange, or, if closing prices are unavailable, at the bid prices 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.
Short-term securities maturing within 60 days are valued at amortized cost
which approximates market. Other securities and assets for which market
quotations are not available or deemed inappropriate are valued in good
faith under the direction of the Board of Directors.
Security Transactions and Investment Income: Security transactions are
accounted for on trade date. Realized gains and losses are recorded on an
identified cost basis. Dividend income is recorded on the ex-dividend date
or, in the case of dividends on certain foreign securities, as soon as the
Fund is informed of the ex-dividend date.
Foreign Currency Transactions: The Fund's accounting records are
maintained in U. S. dollars. For purposes of valuation of investments,
assets and liabilities on each date of net asset value determination, the
current exchange rate is applied to foreign currencies for translation to
U. S. dollars. Security transactions, income and expenses are converted at
the prevailing rate of exchange on the date of the event. The effect of
changes in foreign exchange rates on securities is included in the net
realized and unrealized gain or loss on securities.
Distributions to Shareholders: Distributions to shareholders are recorded
by the Fund on ex-dividend date. Dividends from net investment income are
paid annually. 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 d-
istribution under income tax regulations.
Expense Offset Arrangements: The Fund has an arrangement with its
custodian bank whereby the custodian's fees are paid indirectly by credits
earned on the Fund's cash on deposit with the bank. Such deposit
arrangement is an alternative to overnight investments.
Federal Income Taxes: No provision for federal income or excise tax is
required since the Fund intends to qualify as a regulated investment
company under the Internal Revenue Code and to distribute substantially all
of its earnings.
Organization Expenses: Expenses incurred in the organization of the Fund
have been capitalized and are amortized over a five year period.
Note B_Related Party Transactions
Calvert-Sloan Advisers, L.L.C. (the "Advisor") is jointly owned by Calvert
Group, Ltd. (which is indirectly wholly-owned by Acacia Mutual Life
Insurance Company) and Sloan Holdings, Inc. 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 1.50% of the Fund's average daily net assets.
The Advisor reimburses the Fund for its operating expenses (excluding
brokerage fees, taxes, interest, Distribution Plan expenses and
extraordinary items) exceeding the following annual rates of average daily
net assets: 2.5% on the first $30 million, 2.0% on the next $70 million and
1.5% on the excess of $100 million. Beyond the contractual expense
limitation, the Advisor voluntarily reimbursed the Fund for other operating
expenses. Additionally, the Advisor voluntarily waived fees or assumed
expenses of $796 which were not charged to the Fund. Expenses paid or
waived by the Advisor may, to the extent permitted by law, be repaid by the
Fund through March 31, 1998.
Calvert Distributors, Inc. an affiliate of the Advisor, is the distributor
and principal underwriter for the Fund. A distribution plan, adopted by the
shareholders, allows the Fund to pay the distributor for expenses and
services associated with distribution of shares. The expenses paid may not
exceed .75% annually of average daily net assets of the Fund.
The Distributor received $10,410 as its portion of the commissions charged
on sales of Fund's shares.
Calvert Shareholder Services, Inc., an affiliate of the Advisor, acts as
transfer, dividend disbursing and shareholder servicing agent for the Fund.
Calvert Administrative Services Company, an affiliate of the Advisor,
provides administrative services to the Fund for an annual fee, payable
monthly, of .25% of the average daily net assets of the Fund.
Each Director who is not affiliated with the Advisor receives an annual fee
of $1,000 plus $1,000 for each Board and Committee meeting attended.
Note C_Investment Activity
During the period, purchases and sales of investments, other than
short-term securities, were $2,748,764 and $0, respectively.
The cost of investments owned at September 30, 1995 was substantially the
same for federal income tax and financial reporting purposes. Net
unrealized appreciation aggregated $35,308, of which $74,660 related to
appreciated securities and $39,352 related to depreciated securities.
Note D_Capital Share Transactions
The change in net assets resulting from capital share transactions for 1995
is indicated below:
From Inception
April 12, 1995
Through
September 30,
1995
(Unaudited)
In dollars:
Shares sold $7,054,623
Reinvestment of dividends _
Shares redeemed (55,445)
$ 6,999,178
In shares:
Shares sold 592,505
Reinvestment of dividends _
Shares redeemed (4,720)
587,785
Financial Highlights
From Inception
April 12, 1995
Through
September 30,
1995
(Unaudited)
Net asset value, beginning of period $12.00
Income from investment operations
Net investment income (.10)
Net realized and unrealized gain
on investments .04
Total from investment operations (.06)
Total increase (decrease) in
net asset value (.06)
Net asset value, end of period $11.94
Total return<FN2> (.5%)
Ratios to average net assets:
Net investment income (loss) (2.11%) <FN1>
Total expenses<FN3> 4.43% <FN1>
Net expenses 3.21% <FN1>
Expenses reimbursed
and/or waived 3.74% <FN1>
Portfolio turnover 0
Net assets, end of period (in thousands) $7,017
Number of shares outstanding at
end of period (in thousands) 588
[FN]
<F1> Annualized
<F2> Total return is not annualized and does not reflect deduction of Class
A front-end sales charge.
<F3>This ratio reflects total expenses before reduction for fees paid
indirectly.
[/FN]
Investing with Vision (TM) (logo) Calvert Group(R)
A member of the Acacia Group(R)
4550 Montgomery Avenue, Suite 1000N
Bethesda, Maryland 20814
