MARCH 31, 2000
ANNUAL
REPORT
CALVERT
NEW AFRICA FUND
<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
11
FINANCIAL HIGHLIGHTS
15
DEAR SHAREHOLDERS:
IN A QUARTER WHERE FEARS OVER A DISRUPTING Y2K BUG SUBSIDED JUST DAYS INTO THE
START OF THE NEW YEAR, THE SPECTER OF INCREASED MARKET VOLATILITY TOOK EVEN
GREATER SUBSTANCE - WITH LARGE UPWARD SWINGS ONE DAY - ESPECIALLY IN THE
TECHNOLOGY-LADEN NASDAQ - FOLLOWED BY DROPS OF 100 (OR EVEN 487) POINTS, THE
NEXT.
AT THE SAME TIME THE FEDERAL RESERVE, FRETTING OVER AN OVERHEATING ECONOMY,
CONTINUED TO PUSH UP SHORT-TERM INTEREST RATES.
AS IN PAST QUARTERS, YOU COULD PICK THE TOP PERFORMERS BY CAPITALIZATION RANGE
AND INDUSTRY GROUP. JUST AS TECHNOLOGY AND BIOTECH PLAYS FUELED MUCH OF THE
ADVANCE EARLIER IN THE QUARTER, THE INITIAL MICROSOFT JUDGMENT, ALONG WITH WORDS
OF WARNING FROM PRESIDENT BILL CLINTON AND BRITISH PRIME MINISTER TONY BLAIR
OVER GENETIC RESEARCH PROPERTY RIGHTS, SIGNALED A SHARP DECLINE IN BOTH "NEW
ECONOMY" SECTORS. AND ALL THIS DURING A QUARTER WHEN, ON MARCH 16, THE DOW JONES
INDUSTRIAL AVERAGE POSTED A 499-POINT GAIN!
MARKET VOLATILITY - IF NOT DOWNRIGHT TURMOIL - IS, WE BELIEVE, A CURRENT
CONDITION, NOT A CONSTANT. STILL, THIS CHALLENGING ENVIRONMENT UNDERSCORES THE
VALUE OF PROFESSIONAL MONEY MANAGEMENT. REMEMBER TO MAKE DECISIONS BASED ON
YOUR FINANCIAL OBJECTIVES AND TOLERANCE FOR RISK. REEVALUATE YOUR ASSET
ALLOCATION TO BE SURE YOU ARE POSITIONED AT A COMFORTABLE LEVEL. IF YOU THINK
CHANGE IS IN ORDER, YOUR FINANCIAL PROFESSIONAL CAN SUGGEST STRATEGIES THAT KEEP
YOU ON TRACK TO MEET YOUR LONG-TERM FINANCIAL OBJECTIVES WITHOUT EXPOSING YOU TO
UNDUE LEVELS OF RISK.
WE APPRECIATE YOUR INVESTMENT IN CALVERT GROUP FUNDS AND LOOK FORWARD TO WORKING
WITH YOU TO ACHIEVE YOUR FINANCIAL GOALS.
SINCERELY,
BARBARA J. KRUMSIEK
PRESIDENT AND CEO
APRIL 28, 2000
<PAGE>
PORTFOLIO STATISTICS
MARCH 31, 2000
INVESTMENT PERFORMANCE
6 MONTHS 12 MONTHS
ENDED ENDED
3/31/00 3/31/00
NEW AFRICA FUND:
CLASS A (7.25%) (29.42%)
CLASS B (7.58%) (29.95%)
CLASS C (5.95%) (28.72%)
MSCI SOUTH
AFRICA INDEX GD 12.00% 24.99%
LIPPER EMERGING
MARKETS FUNDS
AVERAGE 42.02% 65.41%
TEN LARGEST STOCK HOLDINGS
% OF NET ASSETS
BILLITON, PLC. 6.6%
DIMENSION DATA HOLDINGS, LTD. 6.1%
DE BEERS CENTENARY 5.9%
OLD MUTUAL, PLC. 5.6%
FIRSTRAND, LTD. 4.9%
EGYPTIAN COMPANY FOR
MOBILE SERVICE (MOBINIL) 4.7%
STANDARD BANK INVESTMENT 4.7%
M CELL WARRANTS 4.7%
NASPERS, LTD. (N SHARES) 4.5%
AFRICAN LAKES CORPORATION PLC. 4.5%
TOTAL 52.2%
INVESTMENT PERFORMANCE DOES NOT REFLECT THE DEDUCTION OF ANY FRONT-END
OR DEFERRED SALES CHARGE.
SOURCES: LIPPER ANALYTICAL SERVICES, INC. AND BLOOMBERG
CLIFFORD MPARE
OF
NEW AFRICA ADVISERS
HOW DID THE FUND PERFORM RELATIVE TO ITS BENCHMARK?
FOR THE YEAR ENDED MARCH 31, 2000, THE CALVERT NEW AFRICA FUND'S CLASS A SHARES
HAD A RETURN OF -29.42% COMPARED TO A 24.99% RETURN FOR THE BENCHMARK MORGAN
STANLEY SOUTH AFRICA INDEX.
THE FUND'S SIGNIFICANT UNDER-PERFORMANCE RELATIVE TO THE BENCHMARK WAS THE
RESULT OF AN UNDERWEIGHT POSITION IN SOUTH AFRICA, WHOSE MARKET RETURNED 21.89%
OVER THE PERIOD AND AN OVERWEIGHT POSITION IN GHANA AND KENYA WHOSE MARKETS
RETURNED -41.30% AND -31.61% FOR THE PERIOD RESPECTIVELY. THE FUND HAD NO
EXPOSURE TO MAURITIUS OR MOROCCO, BUT GAINED A LITTLE EXPOSURE TO ZIMBABWE BY
THE END OF THE PERIOD. IN ADDITION TO THE UNDERWEIGHT POSITION IN SOUTH AFRICA,
THE LACK OF EXPOSURE TO THE RESOURCE SECTOR HURT THE FUND'S RELATIVE
PERFORMANCE. THE RESOURCE INDEX IN SOUTH AFRICA RETURNED 38.8% OVER THE PERIOD.
HOW DID EVENTS EFFECT YOUR STRATEGY FOR THE FUND?
AT THE BEGINNING OF THE PERIOD, A MAJORITY OF THE FUND'S SOUTH AFRICAN HOLDINGS
WERE ATTRACTIVELY VALUED SMALL CAPITALIZATION FINANCIAL AND INDUSTRIAL STOCKS.
WHILE THE POTENTIAL FOR PRICE APPRECIATION FOR THESE INDUSTRY SECTORS WAS GREAT,
THEY DID NOT RECEIVE THE POSITIVE FOREIGN INVESTOR SENTIMENT THAT THE SOUTH
AFRICAN RESOURCE SECTOR DID DURING THE PERIOD. THE MARKET FOR THESE STOCKS
PROVED TO BE THIN.
<PAGE>
BY THE END OF SEPTEMBER 1999, THE FUND RETURN WAS -23.90% COMPARED TO THE
BENCHMARK RETURN OF 11.59%. CONSEQUENTLY, THE INVESTMENT POLICY COMMITTEE AT
NEW AFRICA ADVISERS DECIDED TO INCREASE THE FUND'S EXPOSURE TO THE STRONG
PERFORMANCE OF THE SOUTH AFRICA MARKET AND ITS POSITIVE OUTLOOK OVER THE MEDIUM
TERM. THE COMMITTEE ALSO DECIDED TO RESTRUCTURE THE FUND TO INCLUDE THE LARGER,
MORE STABLE STOCKS. THE RESTRUCTURING PROCESS CONTINUED THROUGH THE END OF MARCH
2000 AND THE FUND GAINED EXPOSURE TO THE RESOURCE SECTOR, THE RETAIL SECTOR, THE
TELECOMMUNICATIONS SECTOR, MEDIA SECTOR, AND THE INFORMATION TECHNOLOGY SECTOR.
AT THE SAME TIME, THE FUND'S ALLOCATION TO GHANA WAS REDUCED: ALUWORKS WAS
COMPLETELY SOLD OUT OF THE PORTFOLIO AND GUINNESS GHANA WAS SIGNIFICANTLY
REDUCED.
PORTFOLIO STATISTICS
MARCH 31, 2000
AVERAGE ANNUAL TOTAL RETURNS
CLASS A SHARES
ONE YEAR (32.78%)
SINCE INCEPTION (11.16%)
(4/12/95)
CLASS B SHARES
ONE YEAR (33.45%)
SINCE INCEPTION (31.50%)
(6/1/98)
CLASS C SHARES
ONE YEAR (29.43%)
SINCE INCEPTION (29.29%)
(6/1/98)
PERFORMANCE COMPARISON
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT. (SOURCE: LIPPER ANALYTICAL
SERVICES, INC.)
[INSERT LINE GRAPH HERE]
TOTAL RETURNS ASSUME REINVESTMENT OF DIVIDENDS AND REFLECT THE DEDUCTION OF THE
FUND'S MAXIMUM FRONT-END OR DEFERRED SALES CHARGE. NO SALES CHARGE HAS BEEN
APPLIED TO THE INDEX USED FOR COMPARISON. THE VALUE OF AN INVESTMENT IN CLASS A
SHARES IS PLOTTED IN THE LINE GRAPH. THE VALUE OF AN INVESTMENT IN ANOTHER CLASS
OF SHARES WOULD BE DIFFERENT. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE
RESULTS.
<PAGE>
PORTFOLIO STATISTICS
MARCH 31, 2000
TOP FIVE ECONOMIC SECTORS
% OF MARKET VALUE
MINING 15.8%
BANKING 13.5%
INFORMATION TECHNOLOGIES 10.2%
TELECOMMUNICATIONS 10.2%
INSURANCE 7.6%
PORTFOLIO CHARACTERISTICS
NEW AFRICA MSCI SOUTH
FUND AFRICA INDEX
NUMBER OF STOCKS 36 46
MEDIAN MARKET
CAPITALIZATION ($MIL) 4.63 N/A
(BY PORTFOLIO WEIGHT)
PRICE/EARNINGS
RATIO 17.41 16.22
YIELD 2.47% 2.11%
(RETURN ON CAPITAL INVESTMENT)
VOLATILITY MEASURE
NEW AFRICA MSCI SOUTH
FUND AFRICA INDEX
BETA 0.99 1.09
(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.
WHERE DO YOU SEE AFRICAN MARKETS AND ECONOMIES HEADING IN THE FUTURE?
THE SOUTH AFRICAN EQUITY MARKET IS LIKELY TO BE CHARACTERIZED BY VOLATILE EQUITY
PRICES, POSSIBLE CONTINUED DEPRECIATION OF THE RAND, AND RENEWED INFLATIONARY
PRESSURES. WHILE IT IS DIFFICULT TO PREDICT WHEN THE CURRENT VOLATILITY IN THE
SOUTH AFRICAN MARKET WILL END, THE INVESTMENT TEAM WILL VIEW THE CURRENT CLIMATE
AS AN OPPORTUNITY TO DOLLAR COST AVERAGE INTO SECURITIES THAT SHOULD ADD
LONG-TERM VALUE TO THE FUND. THE TEAM WILL CONTINUE TO CONSTRUCT A PORTFOLIO
CONTAINING BOTH TRADITIONAL ECONOMY (RESOURCES, FINANCIALS) AND NEW AGE
(TECHNOLOGY, MEDIA, TELECOM) STOCKS THAT ARE COMPETITIVE WITH THE BENCHMARK OVER
THE NEXT FEW QUARTERS.
THE INVESTMENT TEAM WILL INCLUDE EQUITIES FROM THE BANKING AND TELECOM SECTOR OF
THE SMALLER AFRICAN MARKETS. LISTED TELECOM INVESTMENT OPPORTUNITIES ON THE
AFRICAN CONTINENT ARE LIMITED TO FOUR STOCKS - MCELL (SOUTH AFRICA), ECONET
(ZIMBABWE), SONATEL (SENEGAL) AND MOBINIL (EGYPT) - AND THE FUND HAS EXPOSURE TO
ALL OF THEM. THEREFORE THE TEAM WILL FOCUS ON GAINING MORE EXPOSURE TO THE
BANKING SECTORS IN BOTSWANA AND MAURITIUS. THE FUND ALSO PLANS TO DIVERSIFY ITS
HOLDINGS TO INCLUDE STOCKS IN THE EQUITY MARKETS OF TUNISIA AND MOROCCO.
CAPITAL FLOWS INTO THESE COUNTRIES' EQUITY MARKETS SHOW LITTLE OR NO CORRELATION
TO CAPITAL FLOWS TO OTHER GLOBAL MARKETS. THE POTENTIAL DIVERSIFICATION
BENEFITS TO THE FUND FROM INVESTING IN THESE MARKETS ARE GOOD.
APRIL 28, 2000
<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, 2000, THE RESULTS OF ITS OPERATIONS, THE CHANGES IN ITS
NET ASSETS AND THE FINANCIAL HIGHLIGHTS FOR EACH OF THE PERIODS PRESENTED, IN
CONFORMITY WITH ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES.
THESE FINANCIAL STATEMENTS AND FINANCIAL HIGHLIGHTS (HEREINAFTER 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 AUDITING STANDARDS GENERALLY ACCEPTED IN THE UNITED STATES, 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, 2000 BY CORRESPONDENCE WITH CUSTODIANS AND BROKERS,
PROVIDE A REASONABLE BASIS FOR THE OPINION EXPRESSED ABOVE.
PRICEWATERHOUSECOOPERS LLP
BALTIMORE, MARYLAND
APRIL 28, 2000
<PAGE>
SCHEDULE OF INVESTMENTS
MARCH 31, 2000
EQUITY SECURITIES - 100.7% SHARES VALUE
BOTSWANA - 5.3%
SECHABA BREWERY 163,300 $161,863
SEFALANA HOLDINGS COMPANY 105,300 106,548
268,411
EGYPT - 10.8%
AL-AHRAM BEVERAGES CO.* 4,800 85,920
COMMERCIAL INTERNATIONAL CO. 8,150 96,791
EGYPTIAN COMPANY FOR MOBILE SERVICE (MOBINIL)* 5,000 241,894
EGYPTIAN STARCH & GLUCOSE MANUFACTURING COMPANY 125 868
MEDIA PRODUCTIONS CO.* 1,700 35,177
MISR DUTY FREE SHOP CO. 13,675 39,974
ORASCOM CONSTRUCTION* 3,650 51,603
552,227
GHANA - 4.1%
ASHANTI GOLDFIELDS LIMITED (GDR)* 10,201 21,677
GUINNESS GHANA 339,900 81,002
SOCIAL SECURITY BANK 218,700 106,800
209,479
IVORY COAST - 2.3%
SOCIETE NATIONAL DES TELECOMMUNICATION 3,100 119,720
KENYA - 3.0%
KENYA POWER & LIGHTING COMPANY 71,734 84,336
UCHUMI SUPERMARKETS 114,192 65,983
150,319
SOUTH AFRICA - 64.0%
ANGLO AMERICAN PLATINUM 3,900 103,833
ANGLOGOLD, LTD. 900 43,103
AFRICAN CHURCH * ^ # 2,500 0
AFRICAN CHURCH (CONVERTIBLE PREFERRED) * ^ # 2,500 0
BILLITON, PLC. 71,700 337,902
CITY LODGE HOTELS 1 1
DATATEC, LTD.* 10,600 188,142
DE BEERS CENTENARY 12,800 299,656
DIMENSION DATA HOLDINGS, LTD. 34,779 310,246
FIRSTRAND, LTD. 205,300 248,163
FUSION CAPITAL* 1,053,900 161,258
IMPERIAL HOLDINGS, LTD. 18,396 157,628
M CELL WARRANTS 43,200 237,962
METRO CASH AND CARRY, LTD. 60,400 52,216
MOSSIE HOLDINGS* ^ 25 154,540
NASPERS, LTD. (N SHARES) 18,800 229,840
PRISM HOLDINGS, LTD.* 17,900 22,459
REBHOLD, LTD. 36,700 98,552
REMBRANDT GROUP, LTD. 11,900 105,608
<PAGE>
EQUITY SECURITIES - CONT'D SHARES VALUE
SOUTH AFRICA - CONT'D
SANLAM, LTD. 80,500 $102,357
SAPPI, LTD. 21,200 164,137
STANDARD BANK INVESTMENT 58,200 240,441
3,258,044
UNITED KINGDOM - 10.1%
AFRICAN LAKES CORPORATION, PLC.* 127,141 228,736
OLD MUTUAL, PLC.* 121,100 286,282
515,018
ZIMBABWE - 1.1%
ECONET WIRELESS HOLDINGS, LTD. 135,700 55,061
TOTAL INVESTMENTS (COST $5,781,152) - 100.7% 5,128,279
OTHER ASSETS AND LIABILITIES, NET - (0.7%) (34,219)
NET ASSETS - 100% $5,094,060
* 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, 2000
ASSETS
INVESTMENTS IN SECURITIES, AT VALUE $5,128,279
CASH 6,435
RECEIVABLE FOR SECURITIES SOLD 337,506
INTEREST AND DIVIDENDS RECEIVABLE 13,247
RECEIVABLE FOR SHARES SOLD 139
OTHER ASSETS 11,937
TOTAL ASSETS 5,497,543
LIABILITIES
PAYABLE FOR SECURITIES PURCHASED 241,070
PAYABLE TO BANK 103,092
PAYABLE FOR SHARES REDEEMED 1,163
PAYABLE TO CALVERT - SLOAN ADVISORS, L.L.C. 22,046
PAYABLE TO CALVERT SHAREHOLDER SERVICES, INC. 405
PAYABLE TO CALVERT DISTRIBUTORS, INC. 1,195
ACCRUED EXPENSES AND OTHER LIABILITIES 34,512
TOTAL LIABILITIES 403,483
NET ASSETS $5,094,060
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: 721,127 SHARES OUTSTANDING $8,599,543
CLASS B: 12,174 SHARES OUTSTANDING 115,760
CLASS C: 4,330 SHARES OUTSTANDING 36,430
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) (11,098)
ACCUMULATED NET REALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCIES (2,984,935)
NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS
AND ASSETS AND LIABILITIES IN FOREIGN CURRENCIES (661,640)
NET ASSETS $5,094,060
NET ASSET VALUE PER SHARE
CLASS A: (BASED ON NET ASSETS OF $4,980,860) $6.91
CLASS B: (BASED ON NET ASSETS OF $83,114) $6.83
CLASS C: (BASED ON NET ASSETS OF $30,086) $6.95
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
STATEMENT OF OPERATIONS
YEAR ENDED MARCH 31, 2000
NET INVESTMENT INCOME
INVESTMENT INCOME:
DIVIDEND INCOME (NET OF FOREIGN TAXES WITHHELD OF $16,934)
$258,071
INTEREST INCOME 11,081
TOTAL INVESTMENT INCOME 269,152
EXPENSES:
INVESTMENT ADVISORY FEE 96,961
INTEREST 108,102
TRANSFER AGENCY FEES AND EXPENSES 32,899
DISTRIBUTION PLAN EXPENSES:
CLASS A 15,918
CLASS B 807
CLASS C 161
DIRECTORS' FEES AND EXPENSES 27,692
ACCOUNTING FEES 18,100
CUSTODIAN FEES 34,681
REGISTRATION FEES 36,575
REPORTS TO SHAREHOLDERS 11,988
PROFESSIONAL FEES 32,439
ORGANIZATIONAL EXPENSES 14,068
MISCELLANEOUS 4,173
TOTAL EXPENSES 434,564
REIMBURSEMENT FROM ADVISOR:
CLASS A (79,017)
CLASS B (11,173)
CLASS C (10,639)
FEES PAID INDIRECTLY (12,885)
NET EXPENSES 320,850
NET INVESTMENT INCOME (LOSS) (51,698)
REALIZED AND UNREALIZED GAIN (LOSS)
NET REALIZED GAIN (LOSS) ON:
INVESTMENTS (1,081,308)
FOREIGN CURRENCY TRANSACTIONS (50,849)
(1,132,157)
CHANGE IN UNREALIZED APPRECIATION OR (DEPRECIATION) ON:
INVESTMENTS AND FOREIGN CURRENCIES (1,125,362)
ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES (9,005)
(1,134,367)
NET REALIZED AND UNREALIZED GAIN
(LOSS) (2,266,524)
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS ($2,318,222)
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 2000 1999
OPERATIONS:
NET INVESTMENT INCOME (LOSS) ($51,698) ($84,113)
NET REALIZED GAIN (LOSS) (1,132,157) (1,307,045)
CHANGE IN UNREALIZED APPRECIATION OR (DEPRECIATION)
(1,134,367) (1,778,547)
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (2,318,222) (3,169,705)
CAPITAL SHARE TRANSACTIONS:
SHARES SOLD:
CLASS A 1,597,889 954,326
CLASS B 204,027 77,900
CLASS C 27,981 14,509
REDEMPTION FEES:
CLASS A - 1,576
SHARES REDEEMED:
CLASS A (2,871,619) (871,540)
CLASS B (161,612) --
CLASS C (4,840) --
TOTAL CAPITAL SHARE TRANSACTIONS (1,208,174) 176,771
TOTAL INCREASE (DECREASE) IN NET ASSETS (3,526,396) (2,992,934)
NET ASSETS
BEGINNING OF YEAR 8,620,456 11,613,390
END OF YEAR (INCLUDING UNDISTRIBUTED NET INVESTMENT
INCOME (LOSS) OF ($11,098) AND ($28,144), RESPECTIVELY)
$5,094,060 $8,620,456
CAPITAL SHARE ACTIVITY
SHARES SOLD:
CLASS A 202,264 82,112
CLASS B 23,304 7,297
CLASS C 3,530 1,398
SHARES REDEEMED:
CLASS A (353,356) (80,307)
CLASS B (18,427) --
CLASS C (598) --
TOTAL CAPITAL SHARE ACTIVITY (143,283) 10,500
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.
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, 2000, $154,540 OR 3.03% 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. INVESTMENT INCOME AND REALIZED AND UNREALIZED GAINS AND LOSSES
ARE ALLOCATED TO SEPARATE CLASSES OF SHARES BASED UPON THE RELATIVE NET ASSETS
OF EACH CLASS. EXPENSES ARISING IN CONNECTION WITH A CLASS ARE CHARGED DIRECTLY
TO THAT CLASS. EXPENSES COMMON TO THE CLASSES ARE ALLOCATED TO EACH CLASS IN
PROPORTION TO THEIR RELATIVE NET ASSETS.
<PAGE>
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 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 TAXABLE
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 AMERITAS ACACIA MUTUAL HOLDING
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 HAS CONTRACTUALLY AGREED TO LIMIT THE TOTAL OPERATING EXPENSES OF
EACH CLASS OF SHARES OF THE FUND. FOR THE PURPOSE OF THIS GUARANTEE, OPERATING
EXPENSES DO NOT INCLUDE DISTRIBUTION PLAN EXPENSES, INTEREST EXPENSES,
BROKERAGE, TAXES, EXTRAORDINARY EXPENSES AND CAPITAL ITEMS. FOR THE YEAR ENDED
MARCH 31, 2000, THE TOTAL OF SUCH EXPENSES REIMBURSED BY THE ADVISOR WAS
$100,829.
<PAGE>
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 $4,475 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 $5,554 FOR THE YEAR ENDED MARCH
31, 2000. 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 AFFILIATE 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 $7,970,570 AND $8,842,648, RESPECTIVELY.
THE COST OF INVESTMENTS OWNED AT MARCH 31, 2000 WAS SUBSTANTIALLY THE SAME FOR
FEDERAL INCOME TAX AND FINANCIAL REPORTING PURPOSES. NET UNREALIZED DEPRECIATION
AGGREGATED $652,873, OF WHICH $429,809 RELATED TO APPRECIATED SECURITIES AND
$1,082,682 RELATED TO DEPRECIATED SECURITIES.
THE TABLE BELOW PRESENTS THE NET CAPITAL LOSS CARRYFORWARDS AS OF MARCH 31, 2000
WITH EXPIRATION DATES:
CAPITAL LOSS CARRYFORWARDS EXPIRATION DATES
$1,655,079 3/31/07
807,392 3/31/08
CAPITAL LOSS CARRYFORWARDS MAY BE UTILIZED TO OFFSET CURRENT AND FUTURE CAPITAL
GAINS UNTIL EXPIRATION.
NOTE D - LINE OF CREDIT AND OTHER BORROWINGS
A FINANCING AGREEMENT IS IN PLACE WITH ALL CALVERT GROUP FUNDS (EXCEPT FOR THE
CALVERT SOCIAL INVESTMENT FUND MANAGED INDEX AND CVS AMERITAS INDEX 500
PORTFOLIOS) 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
<PAGE>
ANNUM WILL BE INCURRED ON THE UNUSED PORTION OF THE COMMITTED FACILITY WHICH
WILL BE ALLOCATED TO ALL PARTICIPATING FUNDS. THE FUND HAD $103,092 OUTSTANDING
BORROWINGS AT AN INTEREST RATE OF 6.8125% AT MARCH 31, 2000.
THE FUND HAD BORROWED MONEY FROM ITS LOCAL SUB-CUSTODIAN IN SOUTH AFRICA,
STANDARD CORPORATE AND MERCHANT BANK JOHANNESBURG, TO FACILITATE SECURITY
SETTLEMENT TRANSACTIONS. THE FUND'S AVERAGE DAILY BALANCE OF THESE BORROWINGS
OUTSTANDING DURING THE YEAR ENDED MARCH 31, 2000 WAS APPROXIMATELY $563,172 AT A
WEIGHTED AVERAGE INTEREST RATE OF APPROXIMATELY 18.9%. THE MAXIMUM AMOUNT OF
THESE BORROWINGS OUTSTANDING AT A MONTH-END DURING THE YEAR ENDED MARCH 31, 2000
WAS $1,263,980 AS OF DECEMBER 31, 1999, WHICH WAS 17.3% OF TOTAL ASSETS. THERE
WERE NO BORROWINGS OUTSTANDING AT MARCH 31, 2000.
<PAGE>
FINANCIAL HIGHLIGHTS
YEARS ENDED
MARCH 31, MARCH 31, MARCH 31,
CLASS A SHARES 2000 1999 1998
NET ASSET VALUE, BEGINNING $9.79 $13.34 $12.65
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME (.08) (.10) (.07)
NET REALIZED AND UNREALIZED GAIN (LOSS) (2.80) (3.45) .89
TOTAL FROM INVESTMENT OPERATIONS (2.88) (3.55) .82
DISTRIBUTIONS FROM
IN EXCESS OF NET REALIZED GAIN - -- (.13)
TOTAL DISTRIBUTIONS - -- (.13)
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE
(2.88) (3.55) .69
NET ASSET VALUE, ENDING $6.91 $9.79 $13.34
TOTAL RETURN* (29.42%) (26.61%) 6.72%
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME (LOSS) (.78%) (.84%) (.60%)
TOTAL EXPENSES 6.39% 4.19% 4.65%
EXPENSES BEFORE OFFSETS 5.15% 3.65% 3.76%
NET EXPENSES 4.95% 3.36% 3.25%
PORTFOLIO TURNOVER 133% 60% 74%
NET ASSETS, ENDING (IN THOUSANDS) $4,981 $8,536 $11,613
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 -
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 4.87% 4.99% (A)
EXPENSES BEFORE OFFSETS 3.54% 3.75% (A)
NET EXPENSES 3.25% 3.24% (A)
PORTFOLIO TURNOVER 23% 6%
NET ASSETS, ENDING (IN THOUSANDS) $9,206 $7,974
<PAGE>
FINANCIAL HIGHLIGHTS
PERIODS ENDED
MARCH 31, MARCH 31,
CLASS B SHARES 2000 1999^^
NET ASSET VALUE, BEGINNING $9.75 $13.13
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME (.16) (.06)
NET REALIZED AND UNREALIZED GAIN (LOSS) (2.76) (3.32)
TOTAL FROM INVESTMENT OPERATIONS (2.92) (3.38)
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE (2.92) (3.38)
NET ASSET VALUE, ENDING $6.83 $9.75
TOTAL RETURN* (29.95%) (25.74%)
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME (LOSS) (1.91%) (1.48%) (A)
TOTAL EXPENSES 19.74% 37.54% (A)
EXPENSES BEFORE OFFSETS 5.90% 4.68% (A)
NET EXPENSES 5.70% 4.02% (A)
PORTFOLIO TURNOVER 133% 60%
NET ASSETS, ENDING (IN THOUSANDS) $83 $71
PERIODS ENDED
MARCH 31, MARCH 31,
CLASS C SHARES 2000 1999^^
NET ASSET VALUE, BEGINNING $9.75 $13.13
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME (.12) (.05)
NET REALIZED AND UNREALIZED GAIN (LOSS) (2.68) (3.33)
TOTAL FROM INVESTMENT OPERATIONS (2.80) (3.38)
TOTAL INCREASE (DECREASE) IN NET ASSET VALUE (2.80) (3.38)
NET ASSET VALUE, ENDING $6.95 $9.75
TOTAL RETURN* (28.72%) (25.74%)
RATIOS TO AVERAGE NET ASSETS:
NET INVESTMENT INCOME (LOSS) (1.47%) (1.36%) (A)
TOTAL EXPENSES 72.04% 189.55% (A)
EXPENSES BEFORE OFFSETS 5.90% 5.52% (A)
NET EXPENSES 5.70% 4.02% (A)
PORTFOLIO TURNOVER 133% 60%
NET ASSETS, ENDING (IN THOUSANDS) $30 $14
(A) ANNUALIZED
* TOTAL RETURN IS NOT ANNUALIZED FOR PERIODS LESS THAN ONE YEAR AND DOES NOT
REFLECT DEDUCTION OF ANY FRONT-END OR DEFERRED SALES CHARGE.
^ FROM APRIL 12, 1995 INCEPTION.
^^ FROM JUNE 1, 1998 INCEPTION.
<PAGE>
CALVERT
NEW AFRICA FUND
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 1000 NORTH
BETHESDA, MARYLAND 20814
REGISTERED, CERTIFIED
OR OVERNIGHT MAIL
CALVERT GROUP
C/O NFDS,
330 WEST 9TH STREET
KANSAS CITY, MO 64105
WEB SITE
HTTP://WWW.CALVERT.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
TAX-EXEMPT MONEY MARKET FUNDS
CTFR MONEY MARKET PORTFOLIO
CTFR CALIFORNIA MONEY MARKET PORTFOLIO
TAXABLE MONEY MARKET FUNDS
FIRST GOVERNMENT MONEY MARKET FUND
CSIF MONEY MARKET PORTFOLIO
BALANCED FUND
CSIF BALANCED PORTFOLIO
MUNICIPAL FUNDS
CTFR LIMITED-TERM PORTFOLIO
CTFR LONG-TERM PORTFOLIO
CTFR VERMONT MUNICIPAL PORTFOLIO
NATIONAL MUNI. INTERMEDIATE PORTFOLIO
CALIFORNIA MUNI. INTERMEDIATE PORTFOLIO
MARYLAND MUNI. INTERMEDIATE PORTFOLIO
VIRGINIA MUNI. INTERMEDIATE PORTFOLIO
TAXABLE BOND FUNDS
CSIF BOND PORTFOLIO
INCOME FUND
EQUITY FUNDS
CSIF MANAGED INDEX PORTFOLIO
CSIF EQUITY PORTFOLIO
CAPITAL ACCUMULATION FUND
CWV INTERNATIONAL EQUITY FUND
NEW VISION SMALL CAP FUND
NEW AFRICA FUND
PRINTED ON RECYCLED PAPER
USING SOY-BASED INKS
<PAGE>
