A SPECIAL NOTICE TO ALL
CALVERT GROUP SHAREHOLDERS
We're pleased to announce that on April 21, 1997, Barbara Krumsiek joined
Calvert Group as president and chief executive officer. Ms. Krumsiek comes to
Calvert Group from Alliance Capital Management, where she served as senior vice
president and managing director of their mutual funds division. She has 20 years
experience in mutual fund management and marketing.
Ms. Krumsiek replaces former Calvert Group president, Clifton S. Sorrell,
who stepped down earlier this year after nearly 10 years in the top post.
We look forward to Ms. Krumsiek leading the company into the next century
and bringing Calvert Group mutual funds to a growing number of new investors. We
welcome her to the Calvert Group family.
CALVERT NEW AFRICA FUND
Dear Shareholder:
This report for the Calvert New Africa Fund covers the 12-month period
ending March 31, 1997. As you may remember from our last report, one of the
events that has had the greatest impact on the Fund was the devaluation of the
rand, the South African currency. The currency rebounded in 1997, which was very
positive for the Fund.
Another significant factor was the fall in the price of gold worldwide.
While gold-related companies represent only a portion of the Johannesburg Stock
Exchange All Share Index, negative performance for this group had a
psychological impact on the entire investment community and dampened returns on
other South African issues.
Fund Strategy and Performance
Anticipating that the rand's decline would be a short-term event, we took
steps during the second quarter of 1996 to reduce our currency risk while
positioning the Fund to benefit from the upswing we believed would be not too
far in the distance. Our strategy paid off during the first quarter of 1997, the
last period covered by this report, when the Fund appreciated over 16%.
Another of our main strategic initiatives during this period was to reduce
our holdings in the South African market in favor of countries that had stronger
growth prospects and more favorable economies. Hence, we increased exposure to
all other markets and expanded into Mauritius and Zambia. At the close of this
period, roughly 50% of Fund assets were invested in South Africa, down from
nearly 80% one year ago.
The strongest contributors to the Fund's return were Egypt (up 116% for the
year in dollar terms) and Morocco (up 60% for the year in dollar terms). The
Fund's overweighting in these two countries and positive stock selection boosted
returns. Notable purchases included Commercial International Bank, Central &
West Delta Flour Mills, ONA and BMCE, all in Egypt.
INVESTMENT PERFORMANCE
Periods Ended 3/31/97 6 months 12 months
New Africa Fund 16.16% 5.42%
Morgan Stanley South frica Index 5.93% -7.30%
Investment Performance does not reflect the deduction of any front-end
sales charge.
Outlook
We are optimistic about the future direction of the South African economy,
the condition of which has a big impact on the New Africa Fund's performance.
The 1997/98 budgets struck the market as disciplined and credible, and, if
anything, the Treasury's estimates erred on the conservative side. Expenditure
is set to fall by 2.4% in real terms, and the deficit is targeted to be 4% of
GDP. GDP growth is expected to slow to around 2.5% in fiscal year 1996/97, and
inflation is projected to be about 8.5%.
Going forward, our strategy will be to maximize the upside potential by
overweighting those markets which are aggressively privatizing and have the best
growth and macroeconomic fundamentals. In markets where fundamentals are not as
strong, we will strive to limit risk through meticulous stock and industry
selection.
Sincerely,
Barbara J. Krumsiek
Co-Chairman of the Board
April 25, 1997
Portfolio Statistics
Ten Largest Stock Holdings
as of March 31, 1997
% of Net Assets
ONA 7.3%
Torrah Cement 7.2%
Banque Marocaine De Comm. 6.9%
Dimension Data Holdings 6.1%
Anglo-American Industrial 5.4%
Umbono Holdings Co. 4.4%
El Nasr Co For Gar 3.6%
RMB Holdings 3.6%
Social Security Bank 3.2%
Anglo-American Corp. of South Africa Cos. 3.0%
Total 50.7%
Average Annual Total Return
for the period ended March 31, 1997
One Year 2.76%
Since Inception (4/95) 1.39%
PERFORMANCE COMPARISON
$12,000 ____________________________
$11,000 _____________________$10,471
$10,276
$10,000 ____________________________
9,000 ____________________________
8,000 ___________________________
4/12/95 3/96 3/97
----- Calvert New Africa
_____ MSCI South Africa Index
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.
Report of Independent Accountants
To the Board of Directors of 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,
1997, and the related statement of operations for the year then ended and the
statements of changes in net assets and financial highlights for the year then
ended and 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
audits.
We conducted our audits 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, 1997, by correspondence with the custodian. 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 audits provide 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, 1997, and the results of its operations,
changes in its net assets and financial highlights for the respective periods
stated in the first paragraph, in conformity with generally accepted accounting
principles.
COOPERS & LYBRAND L.L.P.
Baltimore, Maryland
May 9, 1997
STATEMENT OF INVESTMENTS
March 31, 1997
Equity Securities - 94.4% Shares Value
Botswana - 2.5%
Sechaba Investment Trust 207,500 $171,200
Sefalana Holdings Co. 44,500 55,706
226,906
Canada/Zambia - 0.4%
Colossal Resources Corp.* 11,500 33,781
33,781
Egypt - 15.8%
Central & West Delta Flour Mills* 2,805 86,309
Commercial International Bank* 8,890 213,860
El Nasr Co For Gar 12,800 332,607
Starch & Glucoze* 11,500 161,688
Torrah Cement 23,485 660,459
1,454,923
Ghana - 5.2%
Aluworks * 62,000 42,199
Ashanti Goldfields Co. 2,625 30,272
Ashanti Goldfields Co. (GDR) 8,000 110,000
Social Security Bank * 450,000 294,503
476,974
Kenya - 4.6%
Diamond TST 224,411 124,217
Kenya Airways 461,222 70,470
Uchumi Supermarkets * 352,500 232,205
426,892
Mauritius - 1.1%
Air Mauritius * 33,200 69,425
Sun Resorts 16,000 35,529
104,954
Morocco - 15.2%
Banque Marocaine De Comm. * 9,642 630,838
ONA 8,000 669,277
Wafabank 1,100 96,745
1,396,860
South Africa - 48.0%
Adcock Ingram 1,793 8,844
Adcock Ingram (N Shares) 16,141 78,523
Anglo-American Corp. of South Africa Cos. 4,490 277,863
Anglo-American Industrial 12,148 494,771
Anglo-American Platinum 29,030 194,431
Anglovaal 2,300 72,859
Avmin 24,545 101,634
Barlow 10,500 116,535
Equity Securities (Cont'd) Shares Value
South Africa (Cont'd)
Beatrix Mines 10,100 $59,419
Bidvest Group 20,596 126,992
Bidvest Group (4/11/97 Rights) * 988 63
City Lodge Hotels 1 5
Conshu Holdings 113,772 48,397
Dimension Data Holdings * 170,352 558,910
Driefontein Consolidated 6,400 57,998
Engen 31,010 167,697
ISCOR 106,093 86,420
Liberty Life Association of Africa 6,222 174,574
Nampak 19,536 80,893
Nedcor 8,762 167,528
RMB Holdings 14,530 332,058
Rustenburg Platnum 26 421
Samancor 19,400 231,553
Sentrachem 62,520 116,000
South Africa Brews 4,000 126,711
Tiger Oats 2,950 52,065
Toco Holdings * 331,234 54,712
Trans Natal Coal Corp. 23,900 154,124
Umbono Holdings Co. * 178,800 404,571
Western Deep Levels 2,500 72,972
4,419,543
Zimbabwe - 1.6%
Delta Corp.* 30,000 46,625
Wankie Colliery Co.* 231,670 102,873
149,498
Total Equity Securities (Cost $7,755,951) 8,690,331
Principal
Convertible Bonds - 3.0% Amount
South Africa
Investec Overseas 6.375%, 11/30/2002 200,000 276,500
Total Convertible Bonds (Cost $271,603) 276,500
TOTAL INVESTMENTS (Cost $8,029,554) - 97.4% 8,966,831
Other assets and liabilities, net 2.6% 239,245
Net Assets - 100% $9,206,076
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 1997
Assets
Investments in securities, at value $8,966,831
Cash 243,810
Interest and dividends receivable 31,397
Receivable for shares sold 3,051
Deferred organization expenses 41,371
Other assets 17,901
Total assets 9,304,361
Liabilities
Payable for securities purchased 2,005
Payable for shares redeemed 5,626
Payable to Calvert - Sloan Advisors, L.L.C. 20,180
Payable to Calvert Administrative Service Corp., Inc. 1,974
Payable to Calvert Shareholder Services, Inc. 1,452
Payable to Calvert Distributors, Inc. 5,923
Accrued expenses and other liabilities 61,125
Total liabilities 98,285
Net assets $9,206,076
GDR Global Depository Receipt
*Non-Income producing.
Net Assets Consist of:
Paid-in capital applicable to 727,629 outstanding shares of
common stock, $.01 par value with 250,000,000 shares authorized $8,587,730
Undistributed net investment income (6,912)
Accumulated net realized gain (loss) on investments
and foreign currencies (312,027)
Net unrealized appreciation (depreciation) on investments
and assets and liabilities in foreign currencies 937,285
Net assets $9,206,076
Net Asset Value per Share $12.65
See notes to financial statements.
STATEMENT OF OPERATIONS
YEAR ENDED MARCH 31, 1997
Net Investment Income
Investment Income
Dividend income (net of foreign taxes of $5,561) $223,411
Interest income 50
Total investment income 223,461
Expenses
Investment advisory fee 119,720
Transfer agency fees and expenses 17,690
Distribution Plan expenses 59,860
Directors' fees and expenses 55,621
Administrative fees 19,953
Custodian fees 23,193
Registration fees 31,299
Reports to shareholders 15,172
Professional fees 29,313
Organizational expenses 13,651
Miscellaneous 3,495
Reimbursement from Advisor (106,380)
Total expenses 282,587
Fees paid indirectly (23,193)
Net expenses 259,394
Net Investment Income (Loss) (35,933)
Realized and Unrealized Gain (Loss)
on Investments
Net realized gain (loss) on:
Securities (244,416)
Foreign currencies (22,716)
(267,132)
Change in unrealized appreciation or depreciation on:
Securities 810,976
Assets and liabilities in foreign currencies (2,364)
808,612
Net Realized and Unrealized Gain
(Loss) on Investments 541,480
Increase (Decrease) in Net Assets
Resulting From Operations $505,547
STATEMENTS OF CHANGES IN NET ASSETS
April 12, 1995
Year Ended (Inception) to
Increase (Decrease) in Net Assets March 31, 1997 March 31, 1996
Operations
Net investment income (loss) $(35,933) $(24,678)
Net realized gain (loss) (267,132) (89,852)
Change in unrealized appreciation
or depreciation 808,612 128,673
Increase (Decrease) in Net Assets
Resulting From Operations 505,547 14,143
Capital share transactions:
Shares sold 1,231,992 8,103,620
Redemption fees 9,225 1,825
Shares redeemed (514,974) (145,302)
Total capital share transactions 726,243 7,960,143
Total Increase (Decrease) in Net Assets 1,231,790 7,974,286
Net Assets
Beginning of period 7,974,286 -
End of period (including undistributed net investment income (loss)
of $(6,912) and $(7,166), respectively) $9,206,076 $7,974,286
Capital Share Activity
Shares sold 107,973 676,456
Shares redeemed (44,818) (11,982)
Total capital share activity 63,155 664,474
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.
Estimates: The preparation of the financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses during the reported
period. Actual results could differ from those estimates.
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-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 voluntarily 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.
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 $9,725 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 $487,486 for 178,800 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 year, purchases and sales of investments, other than short-term
securities, were $2,514,705 and $1,721,847, respectively.
The cost of investments owned at March 31, 1997 was substantially the same
for federal income tax and financial reporting purposes. Net unrealized
appreciation aggregated $937,277, of which $2,052,976 related to appreciated
securities and $1,115,699 related to depreciated securities.
Net realized capital loss carryforwards, for federal income tax purposes,
of $312,025 at March 31, 1997 may be utilized to offset current and future
capital gains until expiration through March 31, 2005.
Net asset value, beginning $12.00 $12.00
Income from investment operations
Net investment income (.05) (.04)
Net realized and unrealized gain (loss) .70 .04
Total from investment operations .65 -
Total increase (decrease) in net asset value .65 -
Net asset value, ending $12.65 $12.00
Total return* 5.42% 0.00%
Ratios to average net assets:
Net investment income (loss) (.45%) (.54%)(a)
Total expenses~ 3.54% 3.75%(a)
Net expenses 3.25% 3.24%(a)
Expenses reimbursed 1.33% 1.24%(a)
Portfolio turnover 23% 6%
Average commission rate paid $.0263 -
Net assets, ending (in thousands) $9,206 $7,974
Number of shares outstanding, ending (in thousands) 728 664
