CALVERT NEW AFRICA FUND
Dear Shareholder:
This report of the Calvert New Africa Fund covers the six months ended
September 30, 1996.
During this period, emerging markets represented by the Morgan Stanley
Capital International Emerging Markets Index, trended higher by 2.3%. The good
performance came on the heels of a dismal showing in 1995, which was largely due
to the collapse of the Mexican market after the devaluation of the peso. For the
comparable period, the Morgan Stanley Capital International South African Index
declined 11.18%. In local currency, the South African market turned in positive
performance, but gains were not strong enough to offset a roughly 14% decline in
the value of the rand relative to the dollar.
We want to point out that the rand's depreciation was not based strictly on
fundamentals. It was triggered in February by a false rumor that Nelson Mandela
had suffered a heart attack. The scare unfortunately coincided with a sell-off
in the U.S. bond market, and rising bond yields exacerbated the run on the
weakened currency.
Fund Strategy and Performance
Currency fluctuations continued to have a negative impact on the Fund's
performance. In local currency terms, the South African market turned in
positive returns for both the six- and 12-month periods. We use the Morgan
Stanley Capital International South Africa Index as a benchmark for the Fund's
performance. This is an imperfect comparison because Fund investments are not
limited to the South African market, but there is no performance measure that
includes all of Africa's markets.
Since the Fund's inception in April 1995, we have worked to identify
promising investment opportunities and spread assets beyond South Africa, the
most highly capitalized African market. By March 1996, we had added
representation in Ghana, Kenya, Zimbabwe, Morocco, Egypt and Botswana. During
the latest six-month period we added investments in Mauritius.
In Mauritius, a tourist haven strategically located between Asia and
Africa, we added Air Mauritius and Sun Resorts Hotel. We increased our exposure
to Botswana with the addition of Sefalena, a milling company.
One of the best performing markets in Africa for this reporting period was
the Moroccan market, which appreciated 21% in dollar terms in anticipation of a
recovering economy. Zimbabwe also turned in good gains due to favorable weather
conditions which helped the crops. On the other hand, the market in Ghana
continues to struggle with spiraling inflation and uncertainties over the
upcoming elections.
We recently increased our exposure to Egypt, a market with strong
fundamentals. And, while the government is moving at a slower than expected
pace, we believe their privatization of a number of state-owned enterprises will
serve as a catalyst to propel the market to a higher valuation.
Outlook
Our outlook for the South African market over the next year is positive.
Going forward, we will continue to emphasize two key investment themes: 1) a
belief that commodity prices will trend higher; and 2) anticipation of a pickup
in consumer spending. In our opinion, the global economy's continuing strength
will bring about a greater demand for certain goods. We have positioned the Fund
to capitalize on this trend through investment in Transnatal Coal and other
mineral-related stocks. While gold prices softened during this reporting period,
we expect they will rebound over the next 12 months on higher demand.
Currency fluctuations always play a part in determining returns on
international investments, especially emerging market investments, to U.S.
investors. However, we believe the worst of the devaluation is behind us. We
expect the rand will settle between 4.20 to 4.30 to the dollar during the next
12 months.
We appreciate your investment in the Fund.
Sincerely,
Clifton S. Sorrell
Co-Chairman of the Board
October 17, 1996
Portfolio Statistics
Ten Largest Stock Holdings
as of September 30, 1996
% of Net Assets
- ----------------------------------------------------------------------------
Banque Mar Du Com Ext 5.8%
Torrah Cement 5.4%
ONA 5.4%
Umbono Holdings Co. 5.3%
Anglo-American Industrial 5.0%
Dimension Data Holdings, Ltd. 4.4%
Anglo-American Corp. of South Africa Cos., Ltd. 3.6%
El Nasr Co For Gar 3.3%
Samancor, Ltd. 3.2%
RMB Holdings, Ltd. 3.0%
Total 44.4%
==========================================================================
Cumulative Total Return
for the period ended September 30, 1996
One Year -11.10%
Since Inception (4/95) -8.00%
Total returns assume reinvestment of dividends and reflect the deduction of
the Fund's maximum sales charge of 2.50%. No sales charge has been applied to
the index used for comparison. Past performance is no guarantee of future
results.
Equity Securities - 93.3% Shares Value
- ------------------------------------------------------------------
Botswana - 1.6%
Sechaba Investment Trust 172,500 $121,294
- --------------------------------------------------------------------------
121,294
- -------------------------------------------------------------------------------
Canada - 1.0%
Colossal Resources Corp.* 11,500 81,058
- ---------------------------------------------------------------------------
81,058
- --------------------------------------------------------------------------------
Egypt - 12.1%
Central & West Delta Mills* 2,805 39,400
Commercial International* 899 124,109
El Nasr Co For Gar 12,800 253,214
Starch & Glucoze* 7,950 93,563
Torrah Cement 23,485 414,502
- ------------------------------------------------------------------------------
924,788
- --------------------------------------------------------------------------------
Ghana - 2.3%
Ashanti Goldfields Co., Ltd. 2,500 42,360
Ashanti Goldfields Co., Ltd. (ADR) 8,000 134,000
- -------------------------------------------------------------------------
176,360
- -----------------------------------------------------------------------------
Kenya - 5.2%
Diamond TST 224,411 153,007
Kenya Airways* 461,222 83,036
Uchumi Supermarkets, Ltd. 235,000 161,274
- --------------------------------------------------------------------------------
397,317
- -------------------------------------------------------------------------------
Mauritius - 1.4%
Air Mauritius* 33,200 80,543
Sun Resorts* 16,000 27,715
- --------------------------------------------------------------------------------
108,258
- --------------------------------------------------------------------------------
Morocco - 11.2%
Banque Mar Du Com Ext 9,642 442,046
ONA 8,000 410,561
- --------------------------------------------------------------------------------
852,607
- --------------------------------------------------------------------------------
South Africa - 58.1%
Angelo-American Platinum 28,400 192,505
Anglo-American Corp. of South Africa Cos., Ltd. 4,490 275,150
Anglo-American Industrial 10,847 382,568
Anglovaal, Ltd. 4,700 146,082
Barlow, Ltd. 10,500 101,841
Beatrix Mines, Ltd. 10,100 70,131
Bidvest Group, Ltd. 20,342 112,999
City Lodge Hotels, Ltd. 12,770 85,856
Conshu Holdings, Ltd. 113,772 81,508
Dimension Data Holdings, Ltd. * 169,000 336,026
Driefontein Consolidated, Ltd. 6,400 69,975
Equity Securities (Cont'd) Shares Value
Electronics (7.0%)
Electro Scientific Inds., Inc. (2) 1,600$ 38,600
Electroglas, Inc. (2) 800 35,000
Intel Corp. 400 33,950
Mentor Graphics Corp. (2) 1,000 15,625
Pacific Scientific Co. 1,500 30,750
Photronic, Inc. (2) 750 17,063
Quality Semiconductor, Inc. (2) 2,000 24,000
Sierra Semiconductor Corp. (2) 1,000 25,750
Ultratech Stepper, Inc. (2) 1,000 48,625
Vishay Intertechnology, Inc. 1,150 64,534
333,897
- -------------------------------------------------------------------------------
Financial Services (7.3%)
BankAmerica Corp. 1,050 50,663
First USA, Inc. 950 39,900
Foothill Group, Inc. 2,000 39,750
Glendale Federal Bank
Federal Savings Bank (2) 3,700 37,463
GP Finl. Corp. 1,000 23,125
Green Tree Finl. Corp. 1,500 61,500
Price T. Rowe & Associates, Inc. 1,500 54,563
Roosevelt Finl. Group, Inc. 1,800 28,350
Verifone, Inc. (2) 600 14,700
350,014
- ------------------------------------------------------------------------------
Industrial Products (8.0%)
Asyst Technologies, Inc. (2) 1,500 55,125
Caraustar Industries, Inc. 1,000 17,000
Checkpoint Systems, Inc. (2) 2,300 42,550
Chesapeake Corp. 1,000 32,000
FSI International, Inc. (2) 2,800 113,050
OEA, Inc. 1,050 26,119
Sigma Aldrich Corp. 800 31,000
Smith International, Inc. (2) 2,000 28,500
Solectron Corp. (2) 1,300 38,025
383,369
- -------------------------------------------------------------------------------
Insurance (1.6%)
AFLAC, Inc. 1,500 60,563
American Bankers Insurance Group 500 14,313
74,876
- --------------------------------------------------------------------------------
Leisure (0.7%)
Carnival Corp. 1,500 35,062
35,062
- --------------------------------------------------------------------------------
Equity Securities (Cont'd) Shares Value
- ----------------------------------------------------------------------------
Manufacturing (8.3%)
AFC Cable Systems, Inc. (2) 1,500 $ 23,250
Aaon, Inc. 2,750 31,797
Cidco, Inc. (2) 3,000 90,376
Guest Supply, Inc. (2) 2,000 42,500
Spectrian Corp. (2) 2,500 75,314
Trinity Inds, Inc. 1,000 37,375
Uniphase Corp. (2) 3,700 71,225
Wabash National Corp. 800 26,200
398,037
- -----------------------------------------------------------------------------
Pharmaceutical & Healthcare (12.9%)
ALZA Corp. (2) 1,900 40,375
Cardinal Health, Inc. 1,100 52,388
Health Care & Retirement Corp. (2) 1,950 61,425
Healthsouth Rehabilitation (2) 800 32,500
Heart Technology, Inc. (2) 1,350 25,312
Invacare Corp. 600 21,150
Manor Care, Inc. 1,600 48,600
Merck & Co., Inc. 1,550 66,070
North American Vaccine, Inc. (2) 2,500 15,000
Quintiles Transnational Corp. (2) 500 18,125
Ren Corp. USA (2) 1,550 24,800
Renal Treatment Centers, Inc. (2) 800 20,400
Research Inds. Corp. (2) 2,000 35,000
Sierra Health Svcs, Inc. (2) 1,000 32,875
Sofamor/Danek Group, Inc. (2) 1,000 24,500
Steris Corp. (2) 800 32,000
U.S. Healthcare, Inc. 850 37,612
Uromed Corp. (2) 2,400 16,500
Value Health, Inc. (2) 400 15,300
- --------------------------------------------------------------------------------
619,932
- --------------------------------------------------------------------------------
Real Estate (1.1%)
Post Properties, Inc. 1,000 29,625
Prime Residential, Inc. 1,000 15,250
Prime Retail, Inc. 600 7,500
52,375
- --------------------------------------------------------------------------------
Restaurants (2.4%)
Applebees International, Inc. 1,600 35,400
Cheesecake Factory, Inc. (2) 2,000 38,000
Daka International, Inc. (2) 2,200 41,250
114,650
- --------------------------------------------------------------------------------
Equity Securities (Cont'd) Shares Value
- -------------------------------------------------------------------------------
Retail Services (8.3%)
AnnTaylor Stores Corp. (2) 600 $ 22,350
Autozone, Inc. (2) 1,300 32,338
Barnes and Noble, Inc. (2) 1,000 30,375
Consolidated Stores Corp. (2) 2,000 40,251
Federated Department Stores, Inc. (2) 1,550 34,294
General Nutrition Centers, Inc. (2) 500 13,875
Gymboree Corp. (2) 1,000 25,375
Heilig Meyers Co. 1,600 35,000
Home Depot, Inc. 800 35,400
Just For Feet, Inc. (2) 750 18,844
Lechters, Inc. (2) 500 8,375
Mens Wearhouse, Inc. (2) 2,000 45,251
Michael's Stores, Inc. 1,000 11,000
Revco D.S., Inc. 1,850 42,550
395,278
- --------------------------------------------------------------------------------
Telecommunications (0.7%)
Mobile Telecommunication (2) 1,000 23,125
Telefonos de Mexico, S.A. 400 11,400
34,525
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS (83.3%) (3)
(Cost $3,601,688) (1) $ 3,985,872
Notes to Portfolio of Investments:
(1) Cost of investments is substantially the same for federal income tax
purposes.
(2) These securities have not declared dividends in the past twelve months.
(3) The percentages shown represent the percentage of the investments to
net assets.
Equity Securities (cont'd) Shares Value
Italy (%)
Italcementi 246,550 $ 1,351,352
Telecom Italia 711,100 1,659,164
3,010,516
- ----------------------------------------------------------------------------
Japan (%)
Canon Incorporated 184,000 3,029,591
Itochu Corporation 378,000 2,306,736
Kandenko Company 159,500 2,442,545
Kuraray Company 207,000 2,407,254
Mitsubishi Trust & Banking 198,000 2,895,337
Nippon Tel & Tel Cp 372 3,203,869
Omron Corporation 127,000 2,500,518
Sanwa Bank 96,000 1,834,888
Sekisui House (Warrants) (3) 175 21,875
Shimachu Company 11,000 335,636
Sumitomo Bank 95,000 2,023,604
TDK Corporation 66,000 3,077,720
Tokyu Construction 491,000 2,730,604
Tsukishima Kikai 124,300 2,289,925
31,100,102
- --------------------------------------------------------------------------------
Mexico (%)
Banpais S.A.-(ADR) (3) 100,000 87,500
Cifra S.A. de C.V.-(ADR) (3) 1,500,000 1,889,550
Grupo Durango S.A. -(ADR) (3) 200,000 1,200,000
Telefonos de Mexico S.A.-(ADR) 70,000 1,995,000
Transportadora de Gas -(ADR) (3) 300,000 2,887,500
8,059,550
- --------------------------------------------------------------------------------
Netherlands (%)
Elsevier NV (3) 251,100 2,632,382
Hagemeyer 12,000 1,001,747
Hunter Douglas NV 35,331 1,521,116
Polygram 53,600 2,962,169
Kon Befenkorf BEH 26,530 1,869,616
Unilever NV 22,950 2,997,030
12,984,060
- -----------------------------------------------------------------------------
Norway (%)
Hafslund Nycomed 158,800 $ 3,129,889
Tomra Systems 188,700 572,421
3,702,310
- ----------------------------------------------------------------------------
Equity Securities (cont'd) Shares Value
- --------------------------------------------------------------------------------
New Zealand (%)
Telecom Corporation 1,080,000 4,090,695
4,090,695
- -----------------------------------------------------------------------------
Singapore (%)
Keppel Corporation 480,000 3,876,727
United Overseas Limited (Warrants) (3) 3,000,000 2,359,192
6,235,919
- -----------------------------------------------------------------------------
Spain (%)
Aguas de Barcelona 119,884 2,368,313
Centros Com Pryca 208,750 3,299,091
Telefonica de Esp 241,910 3,068,080
8,735,484
- -------------------------------------------------------------------------------
Sweden (%)
Arjo AB 63,700 1,043,711
Aga AB (3) 224,020 2,350,953
Autoliv AB (3) 61,000 2,304,567
5,699,231
- -----------------------------------------------------------------------------
Switzerland (%)
Roche Holdings AG 380 2,194,437
Winterthur 2,140 1,190,464
3,384,901
- --------------------------------------------------------------------------------
United Kingdom (%)
British Telecom 410,000 2,590,732
Cable & Wireless 440,000 2,751,782
Emap 430,000 2,891,283
Forte 572,567 2,110,891
Glynwed International 500,000 2,478,937
Hays 450,000 2,223,752
MFI Furniture Group 1,635,000 3,099,401
Marks & Spencer 430,000 2,912,184
21,058,962
- -----------------------------------------------------------------------------
Equity Securities (Cont'd) Shares Value
United States (%)
Albertsons Incorporated 65,000 $ 2,096,250
Bay Apartment Community Incorporated 73,000 1,341,375
Calypte Biomed (Warrants) (3) 50,000 250,000
Dallas Semiconductor Corporation 90,000 1,653,750
Dayton Hudson Corporation 19,000 1,358,500
Durion Incorporated 93,000 1,906,500
El Paso Natural Gas Company 90,000 2,576,250
Enron Corporation 85,000 2,805,000
General Reinsurance Corporation 22,000 2,904,000
Giddings & Lewis Incorporated 63,000 1,071,000
Grainger W. W. Incorporated 18,000 1,134,000
Hannaford Brothers Company 65,000 1,738,750
Healthtrust Incorporated (3) 75,000 2,821,875
Illinois Tool Works Incorporated 40,000 1,955,000
LDDS Communications Incorporated (3) 47,687 1,114,684
Metalclad Corporation (3) 500,000 968,750
New World Power Corporation (3) 165,000 742,500
Northern Trust Corporation 36,000 1,264,500
Partner RE Holdings 85,000 1,806,250
Quadrant Holdings Cambridge (3) 200,000 243,033
Sprint Corporation 70,000 2,117,500
Westcott Communications Incorporated (3) 132,600 1,839,825
35,709,292
- ---------------------------------------------------------------------------
- ----------------------------------------------------------------------------
TOTAL EQUITY SECURITIES
- --------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
(Cost $1,81,908,358) 176,432,645
- --------------------------------------------------------------------------------
Principal
Corporate Notes (0.3%) Amount Value
United States
Accion International $ 100,000 96,674
Banco Solidario SA 260,000 60,000
Catholic Relief Services 150,000 42,719
Community Equity Investments 100,000 100,000
Delaware Valley 75,000 72,505
Ecumenical Development Corporation USA 150,000 141,918
Enterprise Loan Fund 50,000 48,337
Foundation For International Development 100,000 96,674
Freedom From Hunger 50,000 48,337
HSII Investment 150,000 150,000
New Mexico Community $ 25,000 $24,169
Nicaraquan Community 25,000 24,169
SIDI 100,000 96,674
- --------------------------------------------------------------------------------
TOTAL LIMITED PARTNERSHIP INTEREST
(Cost $1,335,000) 1,302,176
- -------------------------------------------------------------------------
Time Deposits (%)
- ----------------------------------------------------------------------------
State Street Bank, London, 6.1875%, 4/3/95 2,409,905 2,409,905
International Bank of Japan, London, 6.00%,
4/3/93 3,004,889 3,004,889
- --------------------------------------------------------------------------------
TOTAL TIME DEPOSIT (Cost $5,414,794) 5,414,794
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS (%) (Cost $188,658,152) $ 183,149,615
- -------------------------------------------------------------------------------
Equity Securities (Cont'd) Shares Value
- ------------------------------------------------------------------------
South Africa (Cont'd)
Engen 23,810 $130,164
Investec Bank, Ltd. 9,100 217,646
ISCOR 105,220 69,350
Liberty Life Association of Africa 6,222 188,244
Middle Witwaters 24,545 96,037
Nampak, Ltd. 19,536 83,975
Nedcor, Ltd. 8,762 126,027
Premier Pharmaceuticals, Ltd. 13,285 67,355
RMB Holdings, Ltd. 14,530 225,805
Samancor, Ltd. 19,400 243,756
Sentrachem, Ltd. 60,570 176,242
South Africa Brews 4,000 106,690
Tiger Oats, Ltd. 2,950 41,618
Toco Holdings, Ltd. * 331,234 135,808
Trans Natal Coal Corp., Ltd. 23,900 194,930
Western Deep Levels, Ltd. 2,500 76,463
Umbono Holdings Co. * 182,500 402,293
- ----------------------------------------------------------------------------
4,437,044
- ------------------------------------------------------------------------------
Zimbabwe - 0.4%
Delta Corp. 10,000 30,948
- -----------------------------------------------------------------------------
30,948
- --------------------------------------------------------------------------------
Total Equity Securities (Cost $7,421,835) 7,129,674
- --------------------------------------------------------------------------------
Principal
Repurchase Agreements - 4.6% Amount
- --------------------------------------------------------------------------------
Donaldson, Lufkin, Jenrette, 5.70%, dated 9/30/96, due
10/1/96 ($357,175 Refunding Corp. STRIPS, 7/15/02) $350,000 350,000
- ----------------------------------------------------------------------------
Total Repurchase Agreements (Cost $350,000) 350,000
- -----------------------------------------------------------------------------
TOTAL INVESTMENTS (Cost $7,771,835) - 97.9% 7,479,674
Other assets and liabilities, net - 2.1% 156,886
- ----------------------------------------------------------------------------
Net Assets - 100% $7,636,560
================================================================================
Net Assets Consist of:
- --------------------------------------------------------------------------------
Paid-in capital applicable to 701,514 outstanding shares of
common stock, $.01 par value with 250,000,000
shares authorized $8,342,729
Undistributed net investment income (loss) (37,937)
Accumulated net realized gain (loss) on investments
and foreign currencies (374,772)
Net unrealized appreciation (depreciation) on investments
and assets and liabilities in foreign currencies (293,483)
- --------------------------------------------------------------------------------
Net assets $7,636,537
===========================================================================
Net Asset Value per Share $10.89
================================================================================
Equity Securities (Cont'd) Shares Value
- ------------------------------------------------------------------------
Electronics (7.0%)
Electro Scientific Inds., Inc. (2) 1,600$ 38,600
Electroglas, Inc. (2) 800 35,000
Intel Corp. 400 33,950
Mentor Graphics Corp. (2) 1,000 15,625
Pacific Scientific Co. 1,500 30,750
Photronic, Inc. (2) 750 17,063
Quality Semiconductor, Inc. (2) 2,000 24,000
Sierra Semiconductor Corp. (2) 1,000 25,750
Ultratech Stepper, Inc. (2) 1,000 48,625
Vishay Intertechnology, Inc. 1,150 64,534
333,897
- --------------------------------------------------------------------------------
Financial Services (7.3%)
BankAmerica Corp. 1,050 50,663
First USA, Inc. 950 39,900
Foothill Group, Inc. 2,000 39,750
Glendale Federal Bank
Federal Savings Bank (2) 3,700 37,463
GP Finl. Corp. 1,000 23,125
Green Tree Finl. Corp. 1,500 61,500
Price T. Rowe & Associates, Inc. 1,500 54,563
Roosevelt Finl. Group, Inc. 1,800 28,350
Verifone, Inc. (2) 600 14,700
350,014
- ------------------------------------------------------------------------------
Industrial Products (8.0%)
Asyst Technologies, Inc. (2) 1,500 55,125
Caraustar Industries, Inc. 1,000 17,000
Checkpoint Systems, Inc. (2) 2,300 42,550
Chesapeake Corp. 1,000 32,000
FSI International, Inc. (2) 2,800 113,050
OEA, Inc. 1,050 26,119
Sigma Aldrich Corp. 800 31,000
Smith International, Inc. (2) 2,000 28,500
Solectron Corp. (2) 1,300 38,025
383,369
- -----------------------------------------------------------------------------
Insurance (1.6%)
AFLAC, Inc. 1,500 60,563
American Bankers Insurance Group 500 14,313
74,876
- --------------------------------------------------------------------------------
Leisure (0.7%)
Carnival Corp. 1,500 35,062
35,062
- --------------------------------------------------------------------------------
Equity Securities (Cont'd) Shares Value
- ----------------------------------------------------------------------
Manufacturing (8.3%)
AFC Cable Systems, Inc. (2) 1,500 $ 23,250
Aaon, Inc. 2,750 31,797
Cidco, Inc. (2) 3,000 90,376
Guest Supply, Inc. (2) 2,000 42,500
Spectrian Corp. (2) 2,500 75,314
Trinity Inds, Inc. 1,000 37,375
Uniphase Corp. (2) 3,700 71,225
Wabash National Corp. 800 26,200
398,037
- --------------------------------------------------------------------------------
Pharmaceutical & Healthcare (12.9%)
ALZA Corp. (2) 1,900 40,375
Cardinal Health, Inc. 1,100 52,388
Health Care & Retirement Corp. (2) 1,950 61,425
Healthsouth Rehabilitation (2) 800 32,500
Heart Technology, Inc. (2) 1,350 25,312
Invacare Corp. 600 21,150
Manor Care, Inc. 1,600 48,600
Merck & Co., Inc. 1,550 66,070
North American Vaccine, Inc. (2) 2,500 15,000
Quintiles Transnational Corp. (2) 500 18,125
Ren Corp. USA (2) 1,550 24,800
Renal Treatment Centers, Inc. (2) 800 20,400
Research Inds. Corp. (2) 2,000 35,000
Sierra Health Svcs, Inc. (2) 1,000 32,875
Sofamor/Danek Group, Inc. (2) 1,000 24,500
Steris Corp. (2) 800 32,000
U.S. Healthcare, Inc. 850 37,612
Uromed Corp. (2) 2,400 16,500
Value Health, Inc. (2) 400 15,300
- ------------------------------------------------------------------------------
619,932
- -------------------------------------------------------------------------------
Real Estate (1.1%)
Post Properties, Inc. 1,000 29,625
Prime Residential, Inc. 1,000 15,250
Prime Retail, Inc. 600 7,500
52,375
- --------------------------------------------------------------------------------
Restaurants (2.4%)
Applebees International, Inc. 1,600 35,400
Cheesecake Factory, Inc. (2) 2,000 38,000
Daka International, Inc. (2) 2,200 41,250
114,650
- --------------------------------------------------------------------------------
Equity Securities (Cont'd) Shares Value
- -----------------------------------------------------------------------------
Retail Services (8.3%)
AnnTaylor Stores Corp. (2) 600 $ 22,350
Autozone, Inc. (2) 1,300 32,338
Barnes and Noble, Inc. (2) 1,000 30,375
Consolidated Stores Corp. (2) 2,000 40,251
Federated Department Stores, Inc. (2) 1,550 34,294
General Nutrition Centers, Inc. (2) 500 13,875
Gymboree Corp. (2) 1,000 25,375
Heilig Meyers Co. 1,600 35,000
Home Depot, Inc. 800 35,400
Just For Feet, Inc. (2) 750 18,844
Lechters, Inc. (2) 500 8,375
Mens Wearhouse, Inc. (2) 2,000 45,251
Michael's Stores, Inc. 1,000 11,000
Revco D.S., Inc. 1,850 42,550
395,278
- -------------------------------------------------------------------------------
Telecommunications (0.7%)
Mobile Telecommunication (2) 1,000 23,125
Telefonos de Mexico, S.A. 400 11,400
34,525
- ----------------------------------------------------------------------------
TOTAL INVESTMENTS (83.3%) (3)
(Cost $3,601,688) (1) $ 3,985,872
Notes to Portfolio of Investments:
(1) Cost of investments is substantially the same for federal income tax
purposes.
(2) These securities have not declared dividends in the past twelve months.
(3) The percentages shown represent the percentage of the investments to
net assets.
Equity Securities (cont'd) Shares Value
Italy (%)
Italcementi 246,550 $ 1,351,352
Telecom Italia 711,100 1,659,164
3,010,516
- --------------------------------------------------------------------------------
Japan (%)
Canon Incorporated 184,000 3,029,591
Itochu Corporation 378,000 2,306,736
Kandenko Company 159,500 2,442,545
Kuraray Company 207,000 2,407,254
Mitsubishi Trust & Banking 198,000 2,895,337
Nippon Tel & Tel Cp 372 3,203,869
Omron Corporation 127,000 2,500,518
Sanwa Bank 96,000 1,834,888
Sekisui House (Warrants) (3) 175 21,875
Shimachu Company 11,000 335,636
Sumitomo Bank 95,000 2,023,604
TDK Corporation 66,000 3,077,720
Tokyu Construction 491,000 2,730,604
Tsukishima Kikai 124,300 2,289,925
31,100,102
- -------------------------------------------------------------------------------
Mexico (%)
Banpais S.A.-(ADR) (3) 100,000 87,500
Cifra S.A. de C.V.-(ADR) (3) 1,500,000 1,889,550
Grupo Durango S.A. -(ADR) (3) 200,000 1,200,000
Telefonos de Mexico S.A.-(ADR) 70,000 1,995,000
Transportadora de Gas -(ADR) (3) 300,000 2,887,500
8,059,550
- --------------------------------------------------------------------------------
Netherlands (%)
Elsevier NV (3) 251,100 2,632,382
Hagemeyer 12,000 1,001,747
Hunter Douglas NV 35,331 1,521,116
Polygram 53,600 2,962,169
Kon Befenkorf BEH 26,530 1,869,616
Unilever NV 22,950 2,997,030
12,984,060
- --------------------------------------------------------------------------------
Norway (%)
Hafslund Nycomed 158,800 $ 3,129,889
Tomra Systems 188,700 572,421
3,702,310
- -------------------------------------------------------------------------------
Equity Securities (cont'd) Shares Value
- ------------------------------------------------------------------------------
New Zealand (%)
Telecom Corporation 1,080,000 4,090,695
4,090,695
- --------------------------------------------------------------------------------
Singapore (%)
Keppel Corporation 480,000 3,876,727
United Overseas Limited (Warrants) (3) 3,000,000 2,359,192
6,235,919
- --------------------------------------------------------------------------------
Spain (%)
Aguas de Barcelona 119,884 2,368,313
Centros Com Pryca 208,750 3,299,091
Telefonica de Esp 241,910 3,068,080
8,735,484
- --------------------------------------------------------------------------------
Sweden (%)
Arjo AB 63,700 1,043,711
Aga AB (3) 224,020 2,350,953
Autoliv AB (3) 61,000 2,304,567
5,699,231
- --------------------------------------------------------------------------
Switzerland (%)
Roche Holdings AG 380 2,194,437
Winterthur 2,140 1,190,464
3,384,901
- --------------------------------------------------------------------------------
United Kingdom (%)
British Telecom 410,000 2,590,732
Cable & Wireless 440,000 2,751,782
Emap 430,000 2,891,283
Forte 572,567 2,110,891
Glynwed International 500,000 2,478,937
Hays 450,000 2,223,752
MFI Furniture Group 1,635,000 3,099,401
Marks & Spencer 430,000 2,912,184
21,058,962
- ----------------------------------------------------------------------------
Equity Securities (Cont'd) Shares Value
United States (%)
Albertsons Incorporated 65,000 $ 2,096,250
Bay Apartment Community Incorporated 73,000 1,341,375
Calypte Biomed (Warrants) (3) 50,000 250,000
Dallas Semiconductor Corporation 90,000 1,653,750
Dayton Hudson Corporation 19,000 1,358,500
Durion Incorporated 93,000 1,906,500
El Paso Natural Gas Company 90,000 2,576,250
Enron Corporation 85,000 2,805,000
General Reinsurance Corporation 22,000 2,904,000
Giddings & Lewis Incorporated 63,000 1,071,000
Grainger W. W. Incorporated 18,000 1,134,000
Hannaford Brothers Company 65,000 1,738,750
Healthtrust Incorporated (3) 75,000 2,821,875
Illinois Tool Works Incorporated 40,000 1,955,000
LDDS Communications Incorporated (3) 47,687 1,114,684
Metalclad Corporation (3) 500,000 968,750
New World Power Corporation (3) 165,000 742,500
Northern Trust Corporation 36,000 1,264,500
Partner RE Holdings 85,000 1,806,250
Quadrant Holdings Cambridge (3) 200,000 243,033
Sprint Corporation 70,000 2,117,500
Westcott Communications Incorporated (3) 132,600 1,839,825
35,709,292
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOTAL EQUITY SECURITIES
- -------------------------------------------------------------------------------
- -----------------------------------------------------------------------------
(Cost $1,81,908,358) 176,432,645
- -------------------------------------------------------------------------------
Principal
Corporate Notes (0.3%) Amount Value
United States
Accion International $ 100,000 96,674
Banco Solidario SA 260,000 60,000
Catholic Relief Services 150,000 42,719
Community Equity Investments 100,000 100,000
Delaware Valley 75,000 72,505
Ecumenical Development Corporation USA 150,000 141,918
Enterprise Loan Fund 50,000 48,337
Foundation For International Development 100,000 96,674
Freedom From Hunger 50,000 48,337
HSII Investment 150,000 150,000
New Mexico Community $ 25,000 $24,169
Nicaraquan Community 25,000 24,169
SIDI 100,000 96,674
- --------------------------------------------------------------------------------
TOTAL LIMITED PARTNERSHIP INTEREST
(Cost $1,335,000) 1,302,176
- --------------------------------------------------------------------------------
Time Deposits (%)
- --------------------------------------------------------------------------------
State Street Bank, London, 6.1875%, 4/3/95 2,409,905 2,409,905
International Bank of Japan, London,
6.00%, 4/3/93 3,004,889 3,004,889
- --------------------------------------------------------------------------------
TOTAL TIME DEPOSIT (Cost $5,414,794) 5,414,794
- --------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS (%) (Cost $188,658,152) $ 183,149,615
- ------------------------------------------------------------------------------
Net Investment Income
- --------------------------------------------------------------------------------
Investment Income
Dividend income (net of foreign taxes of $3,664) $95,268
Interest income 55
- -------------------------------------------------------------------------------
Total investment income 95,323
- --------------------------------------------------------------------------------
Expenses
Investment advisory fee 58,197
Transfer agency fees and expenses 9,198
Distribution Plan expenses 29,099
Directors' fees and expenses 22,439
Administrative fees 9,700
Custodian fees 12,100
Registration fees 16,322
Reports to shareholders 6,754
Professional fees 12,880
Organizational expenses 6,826
Miscellaneous 2,104
Reimbursement from Advisor (47,425)
- --------------------------------------------------------------------------------
Total expenses 138,194
Fees paid indirectly (12,100)
- --------------------------------------------------------------------------------
Net expenses 126,094
- --------------------------------------------------------------------------------
Net Investment Income (Loss) (30,771)
- -------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
on Investments
- --------------------------------------------------------------------------------
Net realized gain (loss) on:
Securities (293,903)
Foreign currencies (13,258)
- --------------------------------------------------------------------------------
(307,161)
Change in unrealized appreciation or depreciation on:
Securities (419,218)
Assets and liabilities in foreign currencies (2,938)
- -------------------------------------------------------------------------------
(422,156)
- ------------------------------------------------------------------------
Net Realized and Unrealized Gain
(Loss) on Investments (729,317)
- -----------------------------------------------------------------------------
Increase (Decrease) in Net Assets
Resulting From Operations $(760,088)
==========================================================================
Increase (Decrease) in Net Assets
- -------------------------------------------------------------------------------
Operations
Net investment income (loss) $(30,771) $(24,678)
Net realized gain (loss) (307,161) (89,852)
Change in unrealized appreciation
or depreciation (422,156) 128,673
- --------------------------------------------------------------------------------
Increase (Decrease) in Net Assets
Resulting From Operations (760,088) 14,143
- -------------------------------------------------------------------------------
Capital share transactions:
Shares sold 667,990 8,103,620
Redemption fees 4,895 1,825
Shares redeemed (250,546) (145,302)
- --------------------------------------------------------------------------------
Total capital share transactions 422,339 7,960,143
- --------------------------------------------------------------------------------
Total Increase (Decrease) in Net Assets (337,749)7,974,286
Net Assets
- ---------------------------------------------------------------------------
Beginning of period 7,974,286 -
- --------------------------------------------------------------------------------
End of period (including undistributed net investment income (loss)
of $(37,937) and $(7,166), respectively) $7,636,537 $7,974,286
================================================================================
Capital Share Activity
- -------------------------------------------------------------------------------
Shares sold 59,133 676,456
Shares redeemed (22,093) (11,982)
- --------------------------------------------------------------------------------
Total capital share activity 37,040 664,474
================================================================================
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's 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 two years are subject to a 2% fee paid to the Fund.
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. 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 valuation of assets and liabilities on each date of net
asset value determination, foreign denominations are translated into U.S.
dollars using the current exchange rate. 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 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.
Redemption Fees: Charges to shareholders for redemption of shares held for
less than two years are used to defray the Fund's cost of shares redeemed.
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
are capitalized and 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. Expenses paid 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 paid $10,311 in addition to 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.
Umbono Holdings Co., which is an affiliate because the Fund owns over 5% of
the voting securities, was purchased at a cost of $497,573 for 182,500 shares.
The current value of Umbono Holdings Co. has been estimated in good faith under
the direction of the Board of Directors.
Note C-Investment Activity
During the period, purchases and sales of investments, other than
short-term securities, were $1,523,263 and $1,287,850, respectively.
The cost of investments owned at September 30, 1996 was substantially the
same for federal income tax and financial reporting purposes. Net unrealized
depreciation aggregated $(292,161), of which $685,102 related to appreciated
securities and $(977,263) related to depreciated securities.
- ---------------------------------------------------------------------------
Net asset value, beginning $12.00 $12.00
================================================================================
Income from investment operations
Net investment income (.04) (.04)
Net realized and unrealized gain (loss) (1.07) .04
- --------------------------------------------------------------------------------
Total from investment operations (1.11) -
- --------------------------------------------------------------------------------
Total increase (decrease) in net asset value (1.11) -
- --------------------------------------------------------------------------------
Net asset value, ending $10.89 $12.00
=============================================================================
Total return* (9.25%) 0.00%
============================================================================
Ratios to average net assets:
Net investment income (loss) (.79%)(a) (.54%)(a)
================================================================================
Total expenses 3.56%(a) 3.75%(a)
================================================================================
Net expenses 3.25%(a) 3.24%(a)
Expenses reimbursed 1.22%(a) 1.24%(a)
Portfolio turnover 18% 6%
Average commission rate paid $.03 -
Net assets, ending (in thousands) $7,637 $7,974
Number of shares outstanding, ending (in thousands) 702 664
==============================================================================
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
TDDfor Hearing
Impaired:
..........................................................................
800-541-1524
Branch Office:
............................................................................
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
Registered, Certified
or Overnight Mail:
...............................................................................
Calvert Group
c/o NFDS, 6th Floor
1004 Baltimore
Kansas City, MO 64105-1807
Web Site
............................................................................
Address: http://www.calvertgroup.com
Principal
Underwriter:
.........................................................................
Calvert Distributors, Inc.
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
