March 31, 1999
annual
report
Calvert
New Africa Fund
<PAGE>
Calvert
New Africa Fund
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Calvert Group
c/o NFDS,
330 West 9th Street
Kansas City, MO 64105
Web Site
http://www.calvertgroup.com
Principal Underwriter
Calvert Distributors, Inc.
4550 Montgomery Avenue
Suite 1000 North
Bethesda, Maryland 20814
This report is intended to provide fund information to shareholders. It is
not authorized for distribution to prospective investors unless preceded or
accompanied by a prospectus.
Calvert Group's
Family of Funds
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Municipal Funds
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Maryland Muni. Intermediate Portfolio
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New Africa Fund
printed on recycled paper
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<PAGE>
Table
of
Contents
President's Letter
1
Portfolio
Manager Remarks
2
Report of Independent Accountants
5
Schedule
of Investments
6
Statement
of Assets and Liabilities
8
Statement
of Operations
9
Statements
of Changes in
Net Assets
10
Notes to
Financial Statements
12
Financial Highlights
15
Results from Shareholder Meeting
17
Y2K Update
18
Dear Shareholders:
The stock market appears to be on its way to a fifth straight year of 20%
plus returns. The pundits are running out of superlatives. The Dow Jones
Industrial Average produced a total return of 25.86%, closing-in a record
breaking 10,000 level near the end of the March quarter. The NASDAQ
Composite Index, supercharged by the technology sector, generated a total
return of 45.57% over the same six-month period.
The current economic environment for investors is exceedingly positive.
Interest rates and inflationary expectations are low and the US economy
remains in an expansion mode. The world's largest economy is now in its
fifth year of GDP growth in excess of 4%.
Among stocks, the top performers were tightly consolidated by capitalization
range and industry group. Large-capitalization companies and technology
plays fueled most of the advance. In the bond market, long-term US Treasury
securities outperformed other categories substantially.
While investors may be tempted to chase the current trend setters, that
approach comes with increased risk now, given the stock market's high levels
and increased volatility. We encourage investors to make decisions based on
their financial objectives and tolerance for risk. At this point, it would
be a good idea to reevaluate your asset allocation to be sure you are
positioned at a comfortable risk level. If you think change is in order,
your financial professional can suggest strategies that keep you on track to
meet long-term financial objectives without exposing you to undue levels of
risk.
We appreciate your investment in Calvert Group funds and look forward to
providing competitive returns in the months ahead.
Sincerely,
Barbara J. Krumsiek
President and CEO
April 28, 1999
<PAGE>
Clifford Mpare
of
New Africa Advisers
How did the Fund perform relative to its benchmark?
For the year ended March 31, 1999, the Calvert New Africa Fund ("the Fund")
had a return of -26.61% compared to a return of --29.87% for the Morgan
Stanley South Africa Index ("the benchmark").
The Fund's outperformance versus the benchmark was driven by two factors:
good country allocation and good stock selection in these countries.
How did current events affect your strategy for the Fund?
The nine months ending December 31, 1998 were dominated by an emerging
market debt crisis fueled by the virtual collapse of the Russian economy.
One consequence of this crisis was that emerging markets were charged a
higher risk premium because Russia had essentially defaulted on its
sovereign debt, thus, emerging market bond yields soared and liquidity for
these securities declined substantially.
The debt crisis effects on African markets were twofold. The first effect
was the rapid decline in global commodity prices, and the second was the
continued currency speculation and reduction in liquidity.
Southern African countries were the hardest hit by these changes. These
countries are net importers of oil and benefited from lower oil prices, but
their exports are made up of primary commodities for which demand and prices
fell. As a result of these global shocks, South Africa experienced negative
GDP growth for 2 consecutive quarters (the 3rd and 4th 1998) and
consequently fell into a technical recession. Overall, Northern and Western
African markets were relatively unscathed by the emerging market debt crises
and these markets provided some stability into the first quarter of 1999.
The West African countries are also net importers of oil, and their
economies are more dependent on agriculture than the rest of Africa.
Fortunately, prices for tropical agricultural products, particularly cocoa,
robusta coffee and tea remained relatively strong and provided the momentum
for increased economic activity in many countries. Egypt has had strong
economic growth over the last few years, so lower oil prices and lower
tourist receipts caused it to slow down to a reasonable GDP growth level of 5
percent. Morocco and Tunisia also benefited from lower oil prices and the
end of the drought season.
Over the last 5 years, Africa has received less than 5% of all foreign
direct investment (FDI) provided to emerging markets. This small amount of
FDI meant that there could be no capital outflows of the scale that
destabilized Eastern Europe, Asia and Latin America.
The South African market did register strong gains during the three months
ending March 31, 1999 despite the economy being in a technical recession.
Consumers continue to be highly leveraged and interest rates are still quite
high. Although improving, the country still has a balance of payments
problem and a shortage of skilled and affordable labor. South Africa's
industries suffer from weak productivity and are struggling to be globally
competitive. Given the macroeconomic outlook for South Africa over the next
nine months, the investment team believes that the run-up in its market
during the quarter is not sustainable for the rest of the year given the
underlying fundamentals in the economy.
The investment team has continued to pursue a dynamic pan-African
diversification strategy. By the end of 1998 the Fund's allocation to the
South African market was 24 percent and its allocation to the Egyptian
market increased to about 18 percent. The Moroccan market, which has
registered strong capital gains over the last three years, represented the
Fund's third highest allocation at 10 percent. During the first quarter of
1999, the Fund gained exposure to the West African regional exchange in the
Ivory Coast for the first time since its inception; it has a 5 percent
allocation to this market at quarter's end. The allocations to South Africa
and Egypt are at 31 and 24 percent, respectively. The Fund has zero exposure
to the Zimbabwean market at this time because the benefits of investing in
this market are significantly outweighed by the political and economic risks
that exist in that economy.
Where do you see African markets and economies heading in the future?
The goal of our pan-African diversification strategy is to gain exposure to
undervalued investment opportunities in the smaller markets in Africa. We
believe that as these markets move to more appropriate valuations which
better represent the underlying macroeconomic fundamentals, the Fund should
benefit. To this end, we expect the markets in Tunisia, the Ivory Coast and
Egypt to outperform their African peers over the medium term therefore we
expect to increase the amount invested in these markets going forward.
April 28, 1999
Portfolio Statistics
March 31, 1999
Investment Performance
6 Months 12 Months
ended ended
3/31/99 3/31/99
New Africa Fund,
Class A (6.67%) (26.61%)
MSCI South
Africa Index GD 18.58% (29.87%)
Lipper Emerging
Markets Funds
Average 22.06% (25.45%)
Ten Largest Stock Holdings
% of Net Assets
Arabian International Construction 9.8%
Real Africa Duroli 5.6%
Sechaba Brewery 5.3%
Malope Foods 4.9%
Sonatel 4.8%
Illovo Suger 4.6%
Dimension Data Holdings, LTD 4.1%
Social Security Bank 4.0%
Olympic Groupo Financial Investments Co. 3.9%
Industrial & Engineering Enterprise 3.8%
Total 50.5%
Asset Allocation
Stocks 95%
Bonds --
Cash & Cash Equivalents 5%
Total 100%
Investment performance does not reflect the deduction of any front-end or
deferred sales charge.
Sources: Lipper Analytical Services, Inc. and Bloomberg
<PAGE>
Portfolio
Statistics
March 31, 1999
Average Annual Total Returns
Class A shares
As of 3/31/99
One year (30.17%)
Since inception (5.87%)
(4/12/95)
Class B shares
As of 3/31/99
Since inception (29.46%)
(6/1/98)
Class C shares
As of 3/31/99
Since inception (26.49%)
(6/1/98)
Performance Comparison
Comparison of change in value of $10,000
investment. (Source: Lipper Analytical Services, Inc.)
[LINE GRAPH HERE]
Total returns assume reinvestment of dividends and reflect the deduction of
the Fund's maximum front-end or deferred sales charge. No sales charge has
been applied to the Index used for comparison. The value of an investment in
Class A shares is plotted in the line graph. The value of an investment in
another class of shares would be different. Past performance is no guarantee
of future results.
<PAGE>
Portfolio Statistics
March 31, 1999
Top Five Economic Sectors
% of Market Value
Construction 17.78%
Banking 13.00%
Food 11.09%
Beverages 9.19%
Manufacturing and
Distribution 8.00%
Portfolio Characteristics
New Africa msci south
Fund africa Index
Number of Stocks 32 46
Median Market
Capitalization 0.12 N/A
(by portfolio weight)
Price/Earnings
Ratio 10.28 14.22
Yield 3.24% 2.39%
(return on capital investment)
Volatility Measure
New Africa msci south
Fund africa Index
Beta 0.59 1.04
(Measure of volatility compared to the S&P 500 Stock Index (beta of 1). The
higher the beta, the higher the risk and potential reward.)
Source: Vestek Systems, Inc.
<PAGE>
Report of independent accountants
To the Board of Directors of Calvert New World Fund, Inc.
and Shareholders of Calvert New Africa Fund:
In our opinion, the accompanying statement of assets and liabilities,
including the schedule of investments, and the related statement of
operations, the statement of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position
of Calvert New Africa Fund (the "Fund"), at March 31, 1999, the results of
its operations, the changes in its net assets and the financial highlights
for each of the periods presented, in conformity with generally accepted
accounting principles. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of
the Fund's management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with generally accepted auditing
standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates made by
management, and evaluating the overall financial statement presentation. We
believe that our audits, which included confirmation of securities at March
31, 1999 by correspondence with custodians and brokers, provide a reasonable
basis for the opinion expressed above.
PricewaterhouseCoopers LLP
Baltimore, Maryland
April 16, 1999
<PAGE>
Schedule of Investments
March 31, 1999
Equity Securities - 95.2% Shares Value
Botswana - 6.3%
Sechaba Brewery 422,200 $458,404
Sefalana Holdings Co. 105,300 81,502
539,906
Egypt - 24.9%
Arabian International Construction * 103,428 842,45
Commercial International 1,950 20,088
Egyptian Starch & Glucose Manufacturing Co.125 1,700
Industrial and Engineering Enterprise * 25,065 328,276
MISR Duty Free Shop Co. * 33,000 326,809
Olympic Group Financial Investments Co. 77,000 339,089
Orascom Construction * 22,000 292,066
2,150,483
Ghana - 11.1%
Aluworks 272,630 315,701
Ashanti Goldfields LTD (GDR) * 1 9
Guinness Ghana 790,000 294,045
Social Security Bank 450,000 346,154
955,909
Ivory Coast - 4.8%
Societe National Des Telecommunication * 10,200 417,065
417,065
Kenya - 5.5%
Kenya Power & Lighting Co., LTD 154,434 275,605
Uchumi Supermarkets 257,492 198,071
473,676
Mauritius - 1.8%
Mauritius Commercial Bank 12,000 48,344
State Bank of Mauritius 105,050 69,140
Sun Resorts 17,700 34,666
152,150
Morocco - 8.7%
Banque Marocaine De Comm. 4,542 307,337
ONA 3,100 317,505
Wafabank 1,300 128,616
753,458
South Africa - 32.1%
Adock Ingram (N Shares) * 2 6
Africa Church *^# 2,500 125,000
Africa Church (Convertible Preferred) *^# 2,500 125,000
Boe, LTD * 166,000 148,172
Chariot Holdings * 6,919 101
City Lodge Hotels * 1 1
Comparex Holdings * 31,000 241,993
Dimension Data Holdings, LTD * 79,069 351,603
First South Africa Corp. * 4 9
Illovo Suger 397,700 400,169
Nu World Holdings * 22,500 73,031
Mossie Holdings *^ 25 163,914
Malope Foods * 452,650 426,075
<PAGE>
Equity Securities - (Cont'd) Shares Value
South Africa (Cont'd)
New Africa Investments, LTD * 135,870 89,305
Privest Group * 5,700 $3,376
Real Africa Duroli * 325,628 483,547
Super Group, LTD * 1,907 3,838
Umbono Investment Corp. * 736,700 131,516
2,766,656
Total Equity Securities (Cost $7,734,538) 8,209,303
TOTAL INVESTMENTS (Cost $7,734,538) - 95.2% 8,209,303
Other assets in excess of liabilities - 4.8%
411,153
Net Assets - 100% $8,620,456
* Non-income producing.
^ This security was valued by the Board of Directors. See Note A.
# See Note B.
See notes to financial statements.
<PAGE>
Statement of Assets and Liabilities
March 31, 1999
Assets
Investments in securities, at value $8,209,303
Cash 430,334
Receivable for securities sold 118,352
Interest and dividends receivable 7,458
Receivable for shares sold 165
Deferred organization expenses 14,068
Other assets 14,029
Total assets 8,793,709
Liabilities
Payable for securities purchased 60,936
Payable to bank 18,472
Payable for shares redeemed 3,008
Payable to Calvert - Sloan Advisors, L.L.C. 32,981
Payable to Calvert Administrative Service Corp., Inc. 1,156
Payable to Calvert Shareholder Services, Inc. 540
Payable to Calvert Distributors, Inc. 1,910
Accrued expenses and other liabilities 54,250
Total liabilities 173,253
Net Assets $8,620,456
Net Assets Consist of:
Paid-in capital applicable to the following shares of common stock,
with 250,000,000 shares of $0.01 par value share authorized for
Class A, B, and C combined:
Class A: 872,219 shares outstanding $9,989,906
Class B: 7,297 shares outstanding 75,530
Class C: 1,398 shares outstanding 14,066
Undistributed net investment income (loss) 28,144)
Accumulated net realized gain (loss) on investments
and foreign currencies (1,903,629)
Net unrealized appreciation (depreciation) on investments
and assets and liabilities in foreign currencies 472,727
Net Assets $8,620,456
Net Asset Value per Share
Class A: (based on net assets of $8,535,713)
$9.79
Class B: (based on net assets of $71,115) $9.75
Class C: (based on net assets of $13,628) $9.75
See notes to financial statements.
<PAGE>
Statement of Operations
year Ended March 31, 1999
Net Investment Income
Investment Income
Dividend income (net of foreign taxes of $14,550) $250,408
Interest income 2,029
Total investment income 252,437
Expenses
Investment advisory fee 151,986
Transfer agency fees and expenses 30,379
Distribution Plan expenses
Class A 34,958
Class B 299
Class C 51
Directors' fees and expenses 56,808
Administrative fees 24,995
Accounting Fees 3,364
Custodian fees 50,595
Registration fees 41,538
Reports to shareholders 4,844
Professional fees 24,161
Organizational expenses 13,651
Miscellaneous 1,136
Total expenses 438,765
Reimbursement from Advisor
Class A (53,755)
Class B (9,813)
Class C (9,469)
Fees paid indirectly (29,178)
Net expenses 336,550
Net Investment Income (Loss) (84,113)
Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments (1,112,955)
Foreign currency transactions (194,090)
(1,307,045)
Change in unrealized appreciation or (depreciation) on:
Investments and foreign currencies (1,778,429)
Assets and liabilities denominated in foreign currencies
(118)
(1,778,547)
Net Realized and Unrealized Gain
(Loss) (3,085,592)
Increase (Decrease) in Net Assets
Resulting From Operations ($3,169,705)
See notes to financial statements.
<PAGE>
Statements of Changes in Net Assets
Year Ended Year Ended
March 31, March 31,
Increase (Decrease) in Net Assets 1999 1998
Operations
Net investment income (loss) ($84,113) ($61,150)
Net realized gain (loss) (1,307,045) (534,598)
Change in unrealized appreciation
or (depreciation) (1,778,547) 1,313,989
Increase (Decrease) in Net Assets
Resulting From Operations (3,169,705) 718,241
Distributions to shareholders
In excess of net realized gain ---- (114,461)
Total distributions ---- (114,461)
Capital share transactions
Shares sold
Class A 954,326 2,510,992
Class B 77,900 --
Class C 14,509 --
Reinvestment of distributions
Class A ---- 110,992
Class B ---- ----
Class C ---- ----
Redemption fees
Class A 1,576 8,250
Class B ---- ----
Class C ---- __
Shares redeemed
Class A (871,540) (825,900)
Class B ---- ----
Class C ---- ----
Total capital share transactions 176,771 1,803,534
Total Increase (Decrease) in Net Assets (2,992,934) 2,407,314
Net Assets
Beginning of year 11,613,390 9,206,076
End of year (including undistributed net investment
income (loss) of ($28,144)and
($66,014), respectively) $8,620,456 $11,613,390
See notes to financial statements.
<PAGE>
Year Ended Year Ended
March 31, March 31,
Capital Share Activity 1999 1998
Shares sold
Class A 82,112 200,578
Class B 7,297 --
Class C 1,398 --
Reinvestment of distributions
Class A ---- 9,874
Class B ---- ----
Class C ---- __
Shares redeemed
Class A (80,307) (67,667)
Class B ---- ----
Class C ---- ----
Total capital share activity 10,500 142,785
See notes to financial statements.
<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. Effective June 1, 1998, the Fund began to
offer three classes of shares, each with different expense levels and sales
charges. Class A shares of capital stock are sold with a maximum front-end
sales charge of 4.75%. This is a change from the former charge of 2.5%. In
addition, the redemption fee charge of 2% for shares held less than two
years was eliminated. Class B shares of capital stock are sold without a
front-end sales charge. With certain exceptions, the Fund will impose a
deferred sales charge on Class B shares at the time of redemption, depending
on how long you have owned the shares. Class C shares of capital stock are
sold without a front-end sales charge. With certain exceptions, the Fund
will impose a deferred sales charge on Class C shares sold within one year.
Class B and C shares have higher expenses than Class A shares, including
higher Distribution Plan expenses. Effective June 1, 1998, the Distribution
Plan for Class A was changed from .75% to .25%, based on the classes'
average daily net assets. Class B and C Distribution Plans are 1.00%.
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.
In determining fair value, the Board considers all relevant qualitative and
quantitative information available. These factors are subject to change over
time and are reviewed periodically. The values assigned to fair value
investments are based on available information and do not necessarily
represent amounts that might ultimately be realized, since such amounts
depend on future developments inherent in long-term investments. Further,
because of the inherent uncertainty of valuation, those estimated values may
differ significantly from the values that would have been used had a ready
market of the investments existed, and the differences could be material.
At March 31, 1999, $413,914 or 4.8% of net assets, were valued by the Board
of Directors.
Security Transactions and Investment Income: Security transactions are
accounted for on trade date. Realized gains and losses are recorded on an
identified cost basis. Dividend income is recorded on the ex-dividend date
or, in the case of dividends on certain foreign securities, as soon as the
Fund is informed of the ex-dividend date.
Foreign Currency Transactions: The Fund's accounting records are maintained
in U. S.
<PAGE>
dollars. For valuation of assets and liabilities on each date of net asset
value determination, foreign denominations are converted into U.S. dollars
using the current exchange rate. Security transactions, income and expenses
are translated at the prevailing rate of exchange on the date of the event.
The effect of changes in foreign exchange rates on securities is included in
the net realized and unrealized gain or loss on securities.
Distributions to Shareholders: Distributions to shareholders are recorded by
the Fund on ex-dividend date. Dividends from net investment income and
distributions from net realized capital gains, if any, are paid at least
annually. Distributions are determined in accordance with income tax
regulations which may differ from generally accepted accounting principles;
accordingly, periodic reclassification's 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.
The redemption fee charge was eliminated effective June 1, 1998.
Expense Offset Arrangements: The Fund has an arrangement with its custodian
bank whereby the custodian's and transfer agent's fees may be paid
indirectly by credits earned on the Fund's cash on deposit with the bank.
Such a deposit arrangement is an alternative to overnight investments.
Federal Income Taxes: No provision for federal income or excise tax is
required since the Fund intends to qualify as a regulated investment company
under the Internal Revenue Code and to distribute substantially all of its
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 Holding
Corporation) and Sloan Holdings, Inc. Effective January 1, 1999, Acacia
Mutual Holding Corporation merged with Ameritas Mutual Insurance Holding
Company to form Ameritas Acacia Mutual Holding Company. The Advisor provides
investment advisory services and pays the salaries and fees of officers and
affiliated Directors of the Fund. For its services, the Advisor receives a
monthly fee based on an annual rate of 1.50% of the Fund's average daily net
assets. Effective June 1998, the Fund began paying monthly performance fee
of plus or minus up to .10%, on an annual basis, of average daily net assets
of the performance period depending on the Fund's performance compared to
the Morgan Stanley Capital International South Africa U.S. Dollar Index. For
the year ended March 31, 1999, the performance fee adjustment increased
advisory fees by $2,017. The performance fee was eliminated as of March 31,
1999.
<PAGE>
The Advisor voluntarily reimbursed the Fund for advisory fees,
administrative fees and other operating expenses of $73,037.
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 .25%, 1.00% and 1.00% annually of average daily net assets of each
Class A, Class B and Class C, respectively.
The Distributor received $8,982 as its portion of commissions charged on
sales of the Fund's shares.
Calvert Shareholder Services, Inc.(CSSI), is the shareholder servicing agent
for the Fund. For its services, CSSI received $6,548 for the year ended
March 31, 1999. National Financial Data Services, Inc., is the transfer and
dividend disbursing agent.
Calvert Administrative Services Company, an affiliate of the Advisor,
provides administrative services to the Fund for an annual fee, payable
monthly, of .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.
Africa Church, which is an affilate because the Fund owns over 5% of the
voting securities, was purchased at a cost of $250,000 for 2,500 common
shares and 2,500 convertible preferred shares.
Note C -- Investment Activity
During the year, purchases and sales of investments, other than short-term
securities, were $5,548,141 and $5,126,814, respectively.
The cost of investments owned at March 31, 1999 was substantially the same
for federal income tax and financial reporting purposes. Net unrealized
appreciation aggregated $474,765, of which $1,463,007 related to appreciated
securities and $988,242 related to depreciated securities.
Note D -- Line of Credit
A financing agreement is in place with all Calvert Group Funds and State
Street Bank and Trust Company ("the Bank"). Under the agreement, the Bank is
providing an unsecured line of credit facility, in the aggregate amount of
$50 million ($25 million committed and $25 million uncommitted), to be
accessed by the Funds for temporary or emergency purposes only. Borrowings
under this facility bear interest at the overnight Federal Funds Rate plus
.50% per annum. A commitment fee of .10% per annum will be incurred on the
unused portion of the committed facility which will be allocated to all
participating funds. The Fund had $18,472 outstanding borrowings at an
interest rate of 5.625% at March 31, 1999.
<PAGE>
Financial Highlights
Years Ended
March 31, March 31,
Class A Shares 1999 1998
Net asset value, beginning $13.34 $12.65
Income from investment operations
Net investment income (.10) (.07)
Net realized and unrealized gain (loss) (3.45) .89
Total from investment operations (3.55) .82
Distributions from
In excess of net realized gain ---- (.13)
Total distributions ---- (.13)
Total increase (decrease) in net asset value (3.55)
.69
Net asset value, ending $9.79 $13.34
Total return* (26.61%) 6.72%
Ratios to average net assets:
Net investment income (loss) (.84%) (.60%)
Total expenses+ 3.65% 3.76%
Net expenses 3.36% 3.25%
Expenses reimbursed .54% .89%
Portfolio turnover 60% 74%
Net assets, ending (in thousands) $8,536 $11,613
Number of shares outstanding,
ending (in thousands) 872 870
Periods Ended
March 31, March 31,
1997 1996^
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 --
Distributions from
In excess of net realized gain -- --
Total distributions -- --
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%
Net assets, ending (in thousands) $9,206 $7,974
Number of shares outstanding,
ending (in thousands) 728 664
<PAGE>
Financial Highlights
Period Ended
March 31,
Class B Shares 1999^^
Net asset value, beginning $13.13
Income from investment operations
Net investment income (.06)
Net realized and unrealized gain (loss) (3.32)
Total from investment operations (3.38)
Total increase (decrease) in net asset value
(3.38)
Net asset value, ending $9.75
Total return* (25.74%)
Ratios to average net assets:
Net investment income (loss) (1.48%)(a)
Total expenses+ 4.68%(a)
Net expenses 4.02%(a)
Expenses reimbursed 32.86%(a)
Portfolio turnover 60%
Net assets, ending (in thousands) $71
Number of shares outstanding,
ending (in thousands) 7
Period Ended
March 31,
Class C Shares 1999^^
Net asset value, beginning $13.13
Income from investment operations
Net investment income (.05)
Net realized and unrealized gain (loss) (3.33)
Total from investment operations (3.38)
Total increase (decrease) in net asset value
(3.38)
Net asset value, ending $9.75
Total return* (25.74%)
Ratios to average net assets:
Net investment income (loss) (1.36%)(a)
Total expenses+ 5.52%(a)
Net expenses 4.02%(a)
Expenses reimbursed 184.03%(a)
Portfolio turnover 60%
Net assets, ending (in thousands) $14
Number of shares outstanding,
ending (in thousands) 1
(a) Annualized
* Total return does not reflect deduction of any front-end or deferred
sales charge.
+ Ratio reflects total expenses before reduction for fees paid
indirectly; such reductions are included in the ratio of net
expenses. Total expenses are presented net of expense waivers and
reimbursements.
^ From April 12, 1995 inception.
^^ From June 1, 1998 inception.
<PAGE>
A special meeting of shareholders was scheduled for February 24, 1999. There
were several proposals voted upon at the meeting. A brief description of each
proposal and the number of votes received for, against, and votes to abstain
is shown below.
Proposal 1 - To elect the Board of Directors.
Nominees For Against
Elias Belayneh 537,474 3,844
Robert Browne 537,557 3,761
Bertie Howard 537,622 3,696
Barbara Krumsiek 537,622 3,696
Reno Martini 537,622 3,696
Madala Mthembu 537,622 3,696
Donald Norland 537,622 3,696
Maceo Sloan 537,622 3,696
Tim Smith 537,622 3,696
Proposal 2-To approve a new investment advisory agreement with the
investment advisor, Calvert-Sloan Advisers, L.L.C. ("Calvert-Sloan").
For Against Abstain
537,850 2,052 1,415
Proposal 3-To approve a new investment subadvisory agreement with the
investment subadvisor, New Africa Advisers, Inc.
For Against Abstain
537,673 2,229 1,415
Proposal 4-To approve a new investment subadvisory agreement with the
investment subadvisor, Calvert Asset Management Company, Inc.
For Against Abstain
538,851 1,051 1,415
Proposal 5-To authorize CNWF and/or Calvert-Sloan to enter into a new and/or
materially amend an existing investment subadvisory agreement in the future
without having to first obtain shareholder approval.
For Against Abstain Broker Non-Vote
451,179 4,506 1,863 83,770
Proposal 6--To change the fundamental investment restriction concerning
diversification.
For Against Abstain Broker Non-Vote
453,723 1,864 1,961 83,770
Proposal 7--To ratify the Board's selection of auditors,
PricewaterhouseCoopers LLP.
For Against Abstain
537,546 1,900 1,871
<PAGE>
Calvert Group and the Year 2000
Plans and Progress
We are now less than a year away from the year 2000, a problematic date for
computer systems coded for two-character year format. Entered as "00," the
year 2000 would be processed as 1900, a mistake that could foul a variety of
date-sensitive transactions.
As your mutual fund sponsor, our goal is make sure there is no interruption
in the level of service you receive. In the summary below, we've outlined
the steps Calvert Group is taking to ensure our systems perform reliably.
Step One--Assess Systems and Software. Develop an Action Plan
In 1997, we identified all systems, operating platforms and software
potentially affected by the millennium bug. These included:
Calvert Group systems--portfolio trading, sales contact and reporting
and internal management reporting
transfer agency systems--shareholder record-keeping and transaction
processing
subadvisor systems--investment accounting
other third-party data and service systems.
We also formed a Y2K task force, led by Calvert's vice president of
technology. This group has identified and prioritized our efforts to achieve
year 2000
compliance.
Step Two--Test for Compliance. Repair Systems as Necessary.
Internal systems have been tested. We've made repairs and moved modified
code into production. These systems are now fully compliant. Transfer agency
systems were re-engineered for compliance in 1989. Recent tests indicate
these are, in fact, compliant. The readiness of third-party systems,
including subadvisor systems, has been evaluated. Based on information
received from these groups, we have found no significant obstacles to
compliance.
Step Three--Confirm Compliance. Finalize Contingency Plan.
Testing of transfer agency systems will continue through 1999 to ensure
these remain compliant and continue to interact correctly with external
systems and processes. The transfer agency has established a back-up site,
should main systems fail, and compliance testing of these contingency
measures are also underway. We are developing contingency plans to ensure
that any unforeseen systems failures will not adversely affect our
operations or inconvenience our shareholders.
For more information or to get an update on remediation and testing efforts,
please visit us online at www.calvertgroup.com.
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