<PAGE>
Calvert
New Africa
Fund
Annual Report
March 31, 1996
Investing with Vision(TM)
[LOGO] Calvert Group
A member of The Acacia Group(R)
<PAGE>
CALVERT NEW AFRICA FUND
Dear Shareholder:
This is the first annual report for the Calvert New Africa Fund. It covers
the period from the Fund's inception on April 12, 1995 through March 31, 1996.
The Calvert New Africa Fund's objective is long-term capital appreciation. It
is our belief that investing in rapidly growing securities of companies that are
growing at a faster pace than their target economy should produce superior
investment returns over time for our shareholders.
Fund Performance
For the period covered by this report, the Fund had a flat performance, with a
0.00% return versus a return of 11.10% for the Morgan Stanley South Africa
Index. (We use this index because there is no index that represents investments
for the entire continent, and because the majority of our holdings are in South
African companies.)
The Fund is currently invested in South Africa, Ghana, Zimbabwe, Kenya,
Morocco, Egypt, and Botswana. For the period ended March 31, 1996, the
performance in the various markets has been mixed. Nevertheless, we are
encouraged by the increased fund flows in the markets, especially South Africa.
Investment Performance
- -----------------------------------------------------------------------------
From 4/12/95 through 3/31/96
----------------------------
New Africa Fund 0.00%
Morgan Stanley South Africa Index 11.10%
Investment performance does not reflect the deduction
of any front-end sales charge.
- -----------------------------------------------------------------------------
Market Review
The best way to understand the Fund's performance is by splitting the period
covered by this report into two sections.
The first, from the Fund's inception through September 30, 1995, was a
sluggish time for emerging markets. The potential in African emerging markets
was overshadowed by investors' negative perceptions of emerging markets in
general, including those in Asia and Latin America. Two events did the most to
foster this perception: the Mexican peso devaluation (and its aftermath) and the
collapse of Barings Bank.
During the second period, the six-month period ended March 31, 1996, overall
Fund performance was affected by major economic and political events in South
Africa. This is to be expected since the Fund's heaviest weighting is in this
nation. Specifically, the Fund's Net Asset Value (NAV) fluctuated from a high of
$13.26 to a low of $11.91 before settling at $12.00. The Fund returned .50%
versus a return of 7.15% for the Morgan Stanley South Africa Index over this
same time frame.
ANNUAL REPORT CALVERT NEW AFRICA FUND - 1
<PAGE>
The first event contributing to this volatility was a sharp rise in gold
prices. In early 1996, the price of gold moved decidedly higher, breaking
through the psychological mark of $400 per ounce. This helped the Johannesburg
Stock Exchange Gold Index to record a particularly strong performance. At the
same time, the strong performance in the gold sector, along with strong stock
selection in the industrial sector, helped the Fund's performance.
Conversely, currency fluctuation of the South African Rand in February had a
negative impact on Fund performance. After a year of relative stability, the
South African Rand started a dramatic plunge on February 14, 1996. From then
until March 31, the Rand moved from R3.644 to R3.980 to the US dollar, a 9%
depreciation. The precipitating event was a rumor that Nelson Mandela had
suffered a heart attack. The rumor proved unfounded, but the damage was already
done in the currency market. We believe the Rand to dollar exchange rate is now
discounting the worst possible scenario in South Africa and, as a result, the
market offers tremendous value.
South African budget, tax, and political changes should have a longer-term
positive effect on the market overall. The effect of the South African budget
was a positive for investors because of reduction of the Secondary Tax on
corporations and the Marketable Securities Tax. Further, the budget deficit for
the 1996-1997 period is forecasted to be 5.1% of the GDP, down from 6% in the
previous budget. The resignation of the Finance Minister, Chris Liebenburg,
rocked the market. But the appointment of Trevor Manuel was later seen as
positive since he is considered to be more politically astute. It is believed
that he will continue to espouse fiscal discipline and monetary restraint and
thus make the country more investor-friendly.
During this period, several stocks had a positive impact on the portfolio,
including Delta Corporation (Zimbabwe) +45.26%, Western Deep Levels, Ltd. (South
Africa) +33.66%, Dimension Data Holdings, Ltd. (South Africa) +64.85%, and
Anglo-American Corporation (South Africa) +17.02%. On the other hand, several
stocks declined during the same period, notably Teljoy Holdings, Ltd. (South
Africa) -48.66%, Uchumi Supermarkets, Ltd. (Kenya) -19.74%, and El Nasr Garments
and Textiles (Egypt) -10.74%.
Outlook
We must emphasize the long-term potential for Calvert New Africa investors
based, primarily, on the underlying value we see in the market. While our long-
term investment strategy may be marked by some short-term performance concerns
or shortfall, we believe the long-term goal of achieving superior returns must
supersede the short-term perspective.
Given the volatility we have witnessed in the markets, we believe there will
be some stabilization in the markets going forward. The economic conditions in
all the countries we have invested in continue to be positive and valuations are
attractive. The perception of risk for those considering investing in the
African
2 - CALVERT NEW AFRICA FUND ANNUAL REPORT
<PAGE>
emerging markets is improving, but slowly. Despite this, our team of local
analysts remains busy scouring the investment landscape to uncover undervalued
assets.
In short, we are confident that our knowledge and ability to uncover good
investments in Africa will reward our shareholders handsomely in the long run.
We appreciate your investment in the Calvert New Africa Fund.
Sincerely,
/s/ Clifton S. Sorrell
Clifton S. Sorrell
Co-Chairman of the Board
April 30, 1996
ANNUAL REPORT CALVERT NEW AFRICA FUND - 3
<PAGE>
PORTFOLIO STATISTICS
TEN LARGEST STOCK HOLDINGS
as of March 31, 1996
<TABLE>
<CAPTION> % of Net Assets
--------------------------------------------------------------------------
<S> <C>
Umbono Holdings Co. 5.8%
Banque Mar Du Com Ext 5.0%
ONA 4.1%
Liberty Life Association of Africa 4.1%
Dimension Data Holdings, Ltd. 3.8%
Torrah Cement 3.7%
City Lodge Hotels, Ltd. 3.6%
El Nasr Co For Gar 3.5%
RMB Holdings, Ltd. 3.3%
Sentrachem, Ltd. 3.2%
-----
Total 40.1%
=====
</TABLE>
CUMULATIVE TOTAL RETURN
for the period ended March 31, 1996
Since Inception (4/95) -2.52%
PERFORMANCE COMPARISON
[GRAPH APPEARS HERE]
For Period between 4/95 and 03/21/96
Calvert New Africa/Ending balance $9,748
MSCI South Africa Index/Ending balance $11,110
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.
4 - CALVERT NEW AFRICA FUND ANNUAL REPORT
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of the Calvert New World Fund, Inc.
and Shareholders of Calvert New Africa Fund:
We have audited the accompanying statement of assets and liabilities of
Calvert New Africa Fund, including the statement of investments, as of March 31,
1996, and the related statement of operations, the statement of changes in net
assets and financial highlights for the period April 12, 1995 (commencement of
operations) through March 31, 1996. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of investments owned as of
March 31, 1996, by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Calvert New Africa Fund as of March 31, 1996, and the results of its operations,
the changes in its net assets and the financial highlights for the period
referred to above, in conformity with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Baltimore, Maryland
May 8, 1996
ANNUAL REPORT CALVERT NEW AFRICA FUND - 5
<PAGE>
STATEMENT OF INVESTMENTS
MARCH 31, 1996
<TABLE>
<CAPTION>
Equity Securities - 95.4% Shares Value
- --------------------------------------------------------------------
<S> <C> <C>
Botswana - 1.3%
Sechaba Investment Trust......................... 137,000 $107,683
--------
107,683
--------
Egypt - 7.1%
El Nasr Garments and Textiles*................... 6,400 277,097
Torrah Cement.................................... 23,485 292,197
--------
569,294
--------
Ghana - 3.1%
Ashanti Goldfields Co., Ltd.*.................... 2,500 49,060
Ashanti Goldfields Co., Ltd. (ADR)*.............. 8,000 200,000
--------
249,060
--------
Kenya - 4.1%
Diamond TST*..................................... 224,411 169,994
Uchumi Supermarkets, Ltd......................... 235,000 154,883
--------
324,877
--------
Morocco - 9.1%
Banque Mar Du Com Ext*........................... 9,642 395,968
ONA.............................................. 8,000 330,398
--------
726,366
--------
South Africa - 70.4%
Amalg Beverage Industries........................ 17,338 78,486
Angelo-American Platinum......................... 28,400 183,915
Anglo-American Corp. of South Africa Cos., Ltd... 3,200 207,630
Anglovaal, Ltd................................... 4,700 182,029
Associated Furniture Cos., Ltd................... 23,297 169,910
Barlow, Ltd...................................... 6,300 80,804
Beatrix Mines, Ltd............................... 10,100 81,917
Bidvest Group, Ltd............................... 36,632 239,527
City Lodge Hotels, Ltd........................... 31,433 284,583
Conshu Holdings, Ltd............................. 113,772 171,675
Dimension Data Holdings, Ltd.*................... 22,533 306,009
Driefontein Consolidated, Ltd.................... 6,400 103,010
Investec Bank, Ltd............................... 9,100 205,971
ISCOR............................................ 235,923 223,089
Kloof Gold Mining Co., Ltd....................... 8,100 102,872
Liberty Life Association of Africa............... 10,441 328,226
Nampak, Ltd...................................... 39,400 193,220
Nedcor, Ltd...................................... 5,400 82,162
Premier Pharmaceuticals, Ltd..................... 33,655 220,062
RMB Holdings, Ltd................................ 19,600 261,248
Samancor, Ltd.................................... 19,400 248,824
Sentrachem, Ltd.................................. 60,000 253,502
South Africa Brews............................... 6,545 207,396
Teljoy Holdings, Ltd*............................ 110,468 104,181
Tiger Oats, Ltd.................................. 12,100 188,668
Toco Holdings, Ltd.*............................. 216,878 149,992
Trans Natal Coal Corp., Ltd...................... 23,900 174,308
</TABLE>
6 - CALVERT NEW AFRICA FUND ANNUAL REPORT
<PAGE>
<TABLE>
<CAPTION>
Equity Securities (Cont'd) Shares Value
- ------------------------------------------------------------------------------
<S> <C> <C>
South Africa (Cont'd)
Western Deep Levels, Ltd.............................. 2,500 $ 117,257
Umbono Holdings Co.*+................................. 182,500 458,969
----------
5,609,442
----------
Zimbabwe -- 0.3%
Delta Corp............................................ 10,000 22,170
----------
22,170
----------
Total Equity Securities (Cost $7,480,325)............ 7,608,892
----------
TOTAL INVESTMENTS (Cost $7,480,325) -- 95.4%...... 7,608,892
Other assets and liabilities, net - 4.6%.......... 365,394
----------
Net Assets -- 100%................................ $7,974,286
==========
</TABLE>
* Non-income producing.
+ See note B.
See notes to financial statements.
ANNUAL REPORT CALVERT NEW AFRICA FUND - 7
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 1996
<TABLE>
<CAPTION>
ASSETS Value
- -----------------------------------------------------------------------------------------------------
<S> <C>
Investments in securities, at value...................................................... $7,608,892
Cash..................................................................................... 600,265
Receivable for shares sold............................................................... 4,070
Dividends receivable..................................................................... 14,992
Deferred organization expenses........................................................... 55,022
Other assets............................................................................. 19,335
----------
Total assets........................................................................... 8,302,576
----------
LIABILITIES
- -----------------------------------------------------------------------------------------------------
Payable for securities purchased......................................................... 238,278
Payable to Calvert-Sloan Advisers, L.L.C. ............................................... 25,894
Payable to Calvert Shareholders Services, Inc. .......................................... 1,376
Payable to Calvert Distributors, Inc. ................................................... 5,137
Accrued expenses and other liabilities................................................... 57,605
----------
Total liabilities..................................................................... 328,290
----------
Net assets.......................................................................... $7,974,286
----------
NET ASSETS CONSIST OF:
- -----------------------------------------------------------------------------------------------------
Par value and paid-in capital applicable to 664,474 shares of common stock outstanding;
$0.01 par value, 250,000,000 shares authorized......................................... $7,960,143
Undistributed net investment income (loss)............................................... (7,166)
Accumulated realized gains (losses) on investments and foreign currencies................ (67,611)
Net unrealized appreciation (depreciation) on investments and assets and liabilities
in foreign currencies.................................................................. 88,920
----------
NET ASSETS.................................................................... $7,974,286
==========
NET ASSET VALUE PER SHARE..................................................... $12.00
==========
</TABLE>
See notes to financial statements.
8 - CALVERT NEW AFRICA FUND ANNUAL REPORT
<PAGE>
STATEMENT OF OPERATIONS
APRIL 12, 1995 (INCEPTION) TO
MARCH 31, 1996
<TABLE>
<CAPTION>
Net Investment Income
- --------------------------------------------------------------------
<S> <C>
Investment Income
Dividend income (net of foreign taxes of $4,498)....... $116,407
Interest income........................................ 7,187
--------
Total investment income............................. 123,594
--------
Expenses
Investment advisory fee................................. 68,590
Transfer agency fees and expenses....................... 12,594
Distribution Plan expenses.............................. 33,955
Directors' fees and expenses............................ 36,086
Administrative fees..................................... 11,432
Custodian fees.......................................... 23,248
Registration fees....................................... 7,878
Reports to shareholders................................. 7,101
Professional fees....................................... 9,602
Organizational expenses................................. 13,234
Miscellaneous........................................... 4,284
Reimbursement from Advisor.............................. (56,484)
--------
Total expenses....................................... 171,520
Fees paid indirectly................................. (23,248)
--------
Net expenses....................................... 148,272
--------
Net Investment Income (Loss)................... (24,678)
--------
Realized and Unrealized Gain (Loss)
on Investments
- --------------------------------------------------------------------
Net realized gain (loss) on:
Securities........................................... (67,611)
Foreign currencies................................... (22,241)
--------
(89,852)
Change in unrealized appreciation or depreciation on:
Securities........................................... 126,268
Assets and liabilities in foreign currencies......... 2,405
--------
128,673
--------
Net Realized and Unrealized Gain
(Loss) on Investments......................... 38,821
--------
Increase (Decrease) in Net Assets
Resulting From Operations..................... $ 14,143
========
</TABLE>
See notes to financial statements.
ANNUAL REPORT CALVERT NEW AFRICA FUND - 9
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION> APRIL 12, 1995
(INCEPTION) TO
INCREASE (DECREASE) IN NET ASSETS MARCH 31, 1996
- -------------------------------------------------------------------------------------------
<S> <C>
Operations
Net investment income (loss)............................................... $ (24,678)
Net realized gain (loss)................................................... (89,852)
Change in unrealized appreciation or depreciation.......................... 128,673
==========
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............................................ 14,143
----------
Capital share transactions:
Shares sold................................................................ 8,103,620
Redemption fees............................................................ 1,825
Shares redeemed............................................................ (145,302)
----------
Total capital share transactions............................................. 7,960,143
==========
TOTAL INCREASE (DECREASE) IN NET ASSETS...................................... 7,974,286
NET ASSETS
- -------------------------------------------------------------------------------------------
Beginning of period........................................................ --
End of period (including undistributed net investment income (loss)
of $(7,166)).............................................................. $7,974,286
==========
CAPITAL SHARE ACTIVITY
- -------------------------------------------------------------------------------------------
Shares sold................................................................ 676,456
Shares redeemed............................................................ (11,982)
==========
Total capital share activity......................................... 664,474
==========
</TABLE>
See notes to financial statements.
10 - CALVERT NEW AFRICA FUND ANNUAL REPORT
<PAGE>
Notes to Financial Statements
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.
ANNUAL REPORT CALVERT NEW AFRICA FUND - 11
<PAGE>
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 received $17,193 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.
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.
12 - CALVERT NEW AFRICA FUND ANNUAL REPORT
<PAGE>
Note C--Investment Activity
During the period, purchases and sales of investments, other than short-term
securities, were $7,812,546 and $264,610, respectively.
The cost of investments owned at March 31, 1996 was substantially the same for
federal income tax and financial reporting purposes. Net unrealized appreciation
aggregated $128,567, of which $627,776 related to appreciated securities and
$499,209 related to depreciated securities.
Financial Highlights
<TABLE>
<CAPTION>
April 12, 1995
(Inception) To
March 31, 1996
- ------------------------------------------------------------------
<S> <C>
Net asset value, beginning of period............. $12.00
======
Income from investment operations
Net investment income........................... (.04)
Net realized and unrealized gain
on investments................................. .04
------
Total from investment operations............... --
------
Total increase (decrease) in net asset value..... --
------
Net asset value, end of period................... $12.00
======
Total return*.................................... 0.00%
======
Ratios to average net assets:
Net investment income (loss)..................... (.54%)(a)
======
Total expenses+.................................. 3.75%(a)
======
Net expenses..................................... 3.24%(a)
======
Expenses reimbursed.............................. 1.24%(a)
======
Portfolio turnover................................ 6%
======
Net assets, end of period (in thousands).......... $7,974
======
Number of shares outstanding at
end of period (in thousands)..................... 664
======
</TABLE>
(a) Annualized
* Total return is not annualized and does not reflect deduction of the front-end
sales charge.
+ This ratio reflects total expenses before reduction for fees paid indirectly;
such reductions are included in the ratio of net expenses.
ANNUAL REPORT CALVERT NEW AFRICA FUND - 13
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==============================================================================
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 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
==============================================================================
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.
