UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-6563
CALVERT WORLD VALUES FUND, INC.
(Exact name of registrant as specified in charter)
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
(Address of Principal Executive Offices)
William M. Tartikoff, Esq.
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
(Name and Address of Agent for Service)
Registrant's telephone number, including area code: (301) 951-4800
Date of fiscal year end: September 30
Date of reporting period: Six months ended March 31, 2006
Item 1. Report to Stockholders.
<PAGE>
Calvert
Investments that make a difference
March 31, 2006
Semi-Annual Report
Calvert World Values
International Equity Fund
a UNIFI company
Calvert
Investments that make a difference
=====================================================
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Table of Contents
President's Letter
1
Social Update
4
Portfolio Management Discussion
6
Shareholder Expense Example
10
Statement of Net Assets
12
Statement of Operations
22
Statements of Changes in Net Assets
23
Notes to Financial Statements
25
Financial Highlights
31
Explanation of Financial Tables
36
Proxy Voting and Availability of Quarterly Portfolio Holdings
38
Basis for Board's Approval of Investment Advisory Contracts
38
=====================================================
Dear Shareholder:
The six months ended March 31, 2006 were exceptionally strong for the international and U.S. equity markets.1 Significant challenges remain worldwide, however, from higher oil and energy prices, ongoing war and regional conflicts, and rising interest rates. Continuing a three-year trend, non-U.S. stocks outpaced U.S. equities for the period, with a 13.99% return for the MSCI EAFE Index versus a 6.38% advance for the Standard & Poor's 500 Index. International returns were led by particularly strong results from some of the smaller European countries and Japan, which turned in the second-best performance overall in the EAFE Index for the period.
Time and again, effective portfolio diversification2 --that typically includes both U.S. and international stocks in the equity portion of a portfolio -- has proven a critical factor in helping investors meet their long-term financial goals. That's why we encourage you to work with your financial advisor to develop an asset allocation strategy and review it periodically.
Calvert Initiatives
At Calvert, we remain committed to making a difference through our specialized investment management approach and our leadership on issues of importance to the communities we serve.
Over the past six months, we've continued to advance our compliance and regulatory oversight; and expanded our public commitment in areas such as board diversity and the global empowerment of women in business through our Calvert Women's Principles.
In addition, we've added a new position to bolster our leadership efforts in the areas of social research, shareholder advocacy, and public outreach. On April 18, Bennett Freeman joined Calvert as Senior Vice President, Social Research and Policy. Formerly head of Global Corporate Responsibility practice at Burson-Marsteller, and Deputy Assistant Secretary of State for Democracy, Human Rights and Labor, Mr. Freeman will manage the social analysis functions and lead the development of Calvert's positions on social issues and actively articulate those positions in a variety of public forums. In addition, he will identify emerging trends and opportunities in social research and shareholder advocacy.
Calvert RatingsTM
In January, we published the Calvert Ratings, a proprietary assessment of the social, environmental, and governance performance of the 100 largest U.S. companies (ranked by market capitalization). We developed the Ratings to provide greater transparency in our methodology for evaluating the corporate performance of companies. The Ratings indicate a company's performance in five separate issue areas including the environment, workplace, business practices, human rights and community relations. The Ratings and their methodology are posted under "Introducing Calvert Ratings" on calvert.com.
A Long-Term, Disciplined Outlook
We believe our comprehensive, disciplined investment process can lead to lower risk and competitive long-term performance. Calvert encourages you to work with a financial professional, who can provide important insights into investment markets, as well as the guidance to create and maintain a thoughtful investment strategy.
As Calvert celebrates our 30th anniversary year, I'd like to thank you for your continued confidence in our investment products, and we look forward to continuing to serve you in the years ahead.
Sincerely,
Barbara J. Krumsiek
President and CEO
Calvert Group, Ltd.
April 2006
1. For the six months ended March 31, 2006, larger-company stocks (S&P 500 Index) were up 6.38%; smaller-company stocks (Russell 2000® Index) advanced 15.23%; and mid-cap stocks (Russell Midcap® Index) gained 11.32%. International stocks gained 13.99% in US dollars, as measured by the MSCI EAFETM Index.
2. Diversification does not protect an investor from market risks and does not assure a profit.
For more information on any Calvert fund, please contact your financial advisor or call Calvert at 800.368.2748 for a free prospectus. An investor should consider the investment objectives, risks, charges, and expenses of an investment carefully before investing. The prospectus contains this and other information. Read it carefully before you invest or send money.
Calvert mutual funds are underwritten and distributed by Calvert Distributors, Inc., member NASD, a subsidiary of Calvert Group, Ltd.
Social Update
from the Calvert Social Research Department
As a company, through the work of the Calvert Social Research Department, and through our unique investment programs, Calvert is a leader in socially responsible investment practices. This Social Update highlights key initiatives and involvement for the six-month reporting period ended March 31, 2006.
Calvert RatingsTM
January 2006 saw the launch of the Calvert Ratings, which evaluates the 100 largest U.S. companies in the areas of environment, workplace, business practices, human rights, and community relations to assign each one an overall corporate responsibility score. Companies are rated on a scale of 1 (substantially below Calvert standards) to 5 (superior). See how the Ratings work on our home page at www.calvert.com.
Calvert Creates Senior Position in Social Research and Policy
With more than 20 years' diplomatic, corporate, and consulting experience in issues that are at the heart of Calvert's social agenda, Bennett Freeman has been named the company's first Sr. Vice President for Social Research and Policy. Freeman manages Calvert's social analysis functions, develops and articulates the company's positions on social issues, and identifies emerging trends and opportunities in social research and shareholder advocacy.
Shareholder Activism
For the 2006 proxy season, Calvert has filed 16 shareholder resolutions and been able to withdraw half of them because companies have taken action to address our concerns. Among these resolutions, issues have included sustainability reporting, political-contributions disclosure, energy efficiency, predatory lending, and sustainable forestry practices.
Over the past several years, Calvert has engaged 35 companies on the subject of corporate board diversity via shareholder resolutions. To date, 28 of those companies--a full 80%--have either changed their charter language or added at least one woman or minority representative to their boards.
Community Investments
Many of our Funds participate in Calvert's community investing program, administered through the Calvert Social Investment Foundation. The program may allocate up to 1% to 3% of Fund assets at below-market rates to provide economic opportunity for struggling populations.1 One investment made by the Foundation during this reporting period was in the Federation of Appalachian Housing Enterprises (FAHE), and one borrower served by FAHE is Laurie Ramos. Ms. Ramos and her two young sons have been able to move from a dilapidated house in an unsafe neighborhood into an affordable, safe, completely refurbished three-bedroom townhouse. A second Calvert community investment effort was through the Foundation in Mi-Bospo, which provides microloans to women recovering from war in Bosnia and Herzegovina. The small businesses expanded or begun by these women help to revive and rebuild local economies.
Special Equities
Since 1992, Calvert's Special Equities Program has provided venture capital for young enterprises that offer market-based solutions to some of the most difficult social, environmental, and health problems facing our world. During this six-month reporting period, two particularly noteworthy Special Equities developments took place.
Mr. Don Ye, President and CEO of Tsinghua Venture Capital Management Company, received the 2005 Cleantech Pioneer Award for his own and his firm's efforts to introduce and promote the first venture capital investment in cleantech and environment industries in China. Special Equities supports Ye and his efforts through our investment in the China Environment Fund 2004 LP.2
In addition, Calvert has joined several prominent banks, foundations, and community-finance trade associations investing in SJF Ventures II, LP, a socially responsible venture capital effort that supports high-growth private companies engaged in cleantech, natural and premium consumer products, and technology-enabled business services.3 SJF affiliates also work closely with their portfolio companies to promote workforce development and sustainability.
1. As of March 31, 2006, Calvert Social Investment Foundation represented the following percentages of Fund net assets: Calvert Social Investment Fund (CSIF) Balanced, 0.84%; CSIF Bond, 0.27%; CSIF Equity, 0.52%; Calvert Capital Accumulation Fund, 0.47%; Calvert World Values Fund International Equity Fund , 0.72%; and Calvert New Vision Small Cap Fund, 0.45%. All holdings are subject to change without notice.
2. As of March 31, 2006, China Environment Fund 2004 LP represented the following percentages of Fund net assets: CSIF Equity Portfolio, 0.0048%; Calvert World Values International Equity Fund, 0.0122%. All holdings are subject to change without notice.
3. As of March 31, 2006, SJF Ventures II, LP represented the following percentage of Fund net assets: CSIF Equity Portfolio, 0.0039%. All holdings are subject to change without notice.
Portfolio Management Discussion
Steve Falci,
Chief Investment
Officer, Equities
of Calvert Asset Management Company
Performance
Calvert World Values International Equity Fund Class A shares (at NAV) returned 14.01%* over the six-month reporting period ended March 31, 2006, essentially matching the 13.99% return of the benchmark Morgan Stanley Capital International (MSCI) Europe Australasia Far East (EAFE) Index.
New Fund Subadvisor
On March 7, 2006, the Directors of the Fund approved the appointment of Acadian Asset Management of Boston as the new subadvisor to the Fund. With about $37 billion in assets under management, Boston-based Acadian is a pioneer in using quantitative approaches to international investing. Adhering to the Fund's stated strategy and Calvert's Double DiligenceTM process (which seeks attractive potential investments in well-managed firms by examining companies both financially and in terms of corporate responsibility), Acadian evaluates more than 20,000 stocks for the Fund, expanding the universe of potential investments far beyond the 1,300 in the MSCI EAFE Index.
Acadian uses several proprietary stock-selection models to construct portfolios that are designed to seek an appropriate balance of risk and return. In addition, Acadian evaluates over 200 country/sectors (e.g. French Technology) versus the world market and each stock in that country/sector versus its peers to identify stocks that are most likely to outperform. This process provides comprehensive analysis of a very large array of stocks. Under Acadian's management, the Fund will continue to be managed with an emphasis on developed-market stocks while maintaining an emerging-markets allocation of up to 10% of net assets as opportunities in emerging markets warrant.
Investment Climate
Equity markets outside the U.S. continued to post strong returns over the reporting period. The MSCI EAFE Index's solid return of 13.99% in U.S.-dollar terms was driven by a strong local-market return of 16%. The strengthening of the U.S. dollar during the period trimmed those local-market returns for U.S. investors. Non-U.S. markets strongly outperformed U.S. equity markets over the six-month period (for example, the Russell 1000® Index of large-cap U.S. stocks returned 6.71% and the S&P 500 Index 6.38%). Emerging markets also performed well during the six-month reporting period, as the MSCI Emerging Markets Index rose 20.2% in U.S. dollars and 17.3% in local-market terms.
The strong performance of both developed and emerging markets reflects a trend that has developed over the past few years. Over the past three years, non-U.S. developed equity markets, as measured by the MSCI EAFE Index, have outperformed U.S. equities, as measured by the Russell 1000 Index and the S&P 500 Index, in 10 of 12 quarters in U.S.-dollar terms. Over the last three years, emerging markets have outperformed both non-U.S. developed markets (EAFE Index) and U.S. markets (Russell 1000 Index) for 11 of those 12 quarters.
As oil prices retreated in the fourth quarter of 2005, energy stocks performed poorly, producing the second-worst sector performance in the EAFE Index for that quarter. As oil prices rebounded in 2006, the Energy sector improved but still underperformed the Index as a whole. With Energy's leadership receding, Financial Services, Information Technology, and Materials and Industrials advanced, all up more than 20% for the period in local-market terms. These sectors outperformed the Consumer Discretionary and Consumer Staples sectors over the six-month period, suggesting that investors placed more reliance on business than on consumers to drive the economy forward.
Propelled by a strong fourth quarter, Japanese markets continued to do well, returning 24.3% in local-market returns, best among the largest countries in EAFE, and second-best overall in the EAFE Index. Japan's strong performance was the exception for EAFE's far-eastern constituents,1 which otherwise underperformed the benchmark. Overall performance in Europe was stronger than for far-eastern markets, with particularly good returns coming out of some of the smaller European countries in the benchmark, including Portugal, Finland, and Ireland.
Portfolio Strategy
Positive contributions from stock selection drove the Fund's performance during the period, compared to both country- and sector-selection. Although overall sector selection did not drive performance, the Fund, which is usually underweight to the Energy sector, benefited from that underweight, as the Energy sector in EAFE underperformed. Underweights to the two top-performing sectors-- Materials and Industrials-- and an overweight to the lagging Health Care sector partially offset the beneficial effects of the Fund's underweight to Energy during the period. While country selection also played a minor role relative to stock selection, the Fund benefited from an overweight to Finland and an underweight to Hong Kong. The Fund did not realize the full benefit of Japan's strong performance during the quarter due to both an underweight to the country and weak stock-selection effects among the Fund's Japanese holdings.
Although the Fund was underweight to the two top-performing sectors, strong stock selection in these sectors counteracted the underweights. In the Materials sector, good performance was delivered by two steel manufacturing firms, Rautaruukki Oyj of Finland and Arcelor of France. Furukawa Electric, a Japanese company that manufactures wires and cables, paced performance among the Fund's holdings in the Industrials sector. Stock selection was also quite strong in the Consumer Discretionary sector, where auto maker Mazda and consumer electronics retailer Yamada Denki, both of Japan, and British home builder Barratt Development were the sector's strongest performers.
Outlook
Acadian continues to see many favorable investing opportunities in both developed and emerging markets, despite the very strong performance of these markets over the last few years. They find most attractive those markets in which earnings growth has kept pace with stock-price increases and economic fundamentals--including the outlook for interest rates and exchange rates which appear favorable to equity investors. Signs of continued moderate economic growth make both developed- and emerging-market European equities quite attractive. In Japan, Acadian believes that careful individual stock selection can still produce good results, even if the overall investing environment in the country does not look too positive.
Acadian is confident in their belief that their process for identifying stocks can deliver competitive results and that the Fund is well positioned for the future.
April 2006
1. Australia, New Zealand, Singapore, Hong Kong, and Japan
As of March 31, 2006, the following companies represented the following percentages of Fund net assets: Rautaruukki Oyj 0.69%, Arcelor: 0.00%, Furukawa Electric 0.54%, Mazda Motors 0.75%, Yamada Denki 0.79%, Barratt Developments 0.63% . All holdings are subject to change without notice.
Portfolio Statistics
March 31, 2006
Investment Performance
(total return at NAV)
| 6 Months | 12 Months |
|
| ended | ended |
|
| 3/31/06 | 3/31/06 |
|
Class A | 14.01% | 23.11% |
|
Class B | 13.46% | 21.84% |
|
Class C | 13.52% | 22.05% |
|
Class I | 14.37% | 23.96% |
|
MSCI EAFE Index GD** | 13.99% | 24.94% |
|
Lipper International Multi-Cap Core Funds Avg** | 14.39% | 26.23% |
|
|
|
|
|
Ten Largest Stock Holdings |
|
|
|
| % of Net Assets |
|
|
ING Group NV CVA | 2.9% |
|
|
Mizuho Financial Group, Inc. | 2.8% |
|
|
GlaxoSmithKline plc | 2.7% |
|
|
Roche Holding AG | 2.3% |
|
|
ABN AMRO Holding NV | 2.1% |
|
|
Honda Motor Co. Ltd. | 2.0% |
|
|
BNP Paribas SA | 1.9% |
|
|
Nokia Oyj | 1.9% |
|
|
Telefonica SA | 1.7% |
|
|
Volkswagen AG Ordinary | 1.7% |
|
|
Total | 22.0% |
|
|
|
|
|
|
Asset Allocation |
|
|
|
|
|
|
|
Stocks | 97% |
|
|
Limited Partnerships | 1% |
|
|
Bonds & Notes | 1% |
|
|
Cash & Cash Equivalents | 1% |
|
|
| 100% |
|
|
Investment performance does not reflect the deduction of any front-end or deferred sales charge.
GD represents gross dividends.
**Source: Lipper Analytical Services, Inc.
*Share return at NAV does not reflect deduction of the Fund's maximum front-end sales charge of 4.75%.
Portfolio Statistics
March 31, 2006
Average Annual Total Returns
(with max. load)
| Class A Shares |
One year | 17.24% |
Five year | 6.51% |
Ten year | 5.32% |
|
|
| Class B Shares |
One year | 16.84% |
Five year | 6.06% |
Since inception | 2.17% |
(3/31/98) |
|
|
|
| Class C Shares |
One year | 21.05% |
Five year | 6.52% |
Ten year | 4.80% |
|
|
| Class I Shares |
One year | 23.96% |
Five year | 8.43% |
Since inception | 4.94% |
(2/26/99) |
|
Performance Comparison
Comparison of change in value of $10,000 investment. (Source: Lipper Analytical Services, Inc.)
Average annual total returns in the Portfolio Statistics above and the Performance Comparison line graph are with maximum load deducted -- they assume reinvestment of dividends and reflect the deduction of the Fund's Class A maximum front-end sales charge of 4.75%, or deferred sales charge, as applicable. No sales charge has been applied to the index used for comparison. However, the Lipper average does reflect the deduction of the category's average front-end sales charge. 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. New subadvisor assumed management of the Fund effective March 2006, and previously in March 2002. The graph and table do not reflect the deduction of taxes that a shareholder would pay on the Fund's distributions or the redemption of Fund shares. Past performance is no guarantee of future results.
Portfolio Statistics
Economic Sectors | % of Total Investments | |
Consumer Discretionary | 13.7% | |
Consumer Staples | 4.6% | |
Energy | 5.7% | |
Financial Services | 35.9% | |
Health Care | 7.8% | |
Industrials | 9.5% | |
Information Technology | 6.7% | |
Limited Partnership Interest | 0.5% | |
Materials | 6.3% | |
Telecommunication Services | 4.9% | |
U.S. Government Agencies and Instrumentalities | 1.3% | |
Utilities | 2.7% | |
Venture Capital | 0.4% | |
| 100.0% |
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) and redemption fees; and (2) ongoing costs, including management fees; distribution (12b-1) fees; and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
This Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (October 1, 2005 to March 31, 2006).
Actual Expenses
The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption fees. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Beginning | Ending Account | Expenses Paid |
| Account Value | Value | During Period* |
| 10/1/05 | 3/31/06 | 10/1/05 - 3/31/06 |
Class A |
|
|
|
Actual | $1,000.00 | $1,140.10 | $9.43 |
Hypothetical | $1,000.00 | $1,016.11 | $8.89 |
(5% return per year before expenses) |
|
| |
Class B |
|
|
|
Actual | $1,000.00 | $1,134.60 | $14.73 |
Hypothetical | $1,000.00 | $1,011.13 | $13.88 |
(5% return per year before expenses) |
|
| |
Class C |
|
|
|
Actual | $1,000.00 | $1,135.90 | $13.86 |
Hypothetical | $1,000.00 | $1,011.95 | $13.05 |
(5% return per year before expenses) |
|
| |
Class I |
|
|
|
Actual | $1,000.00 | $1,143.70 | $5.85 |
Hypothetical | $1,000.00 | $1,019.48 | $5.51 |
(5% return per year before expenses) |
|
|
* Expenses are equal to the Fund's annualized expense ratio of 1.77%, 2.77%, 2.60% and 1.09% for Class A, Class B, Class C and Class I, respectively, multiplied by the average account value over the period, multiplied by 182/365.
Statement of Net Assets
March 31, 2006
EQUITY SECURITIES - 96.8% | Shares | Value |
|
Australia - 4.6% |
|
|
|
AMP Ltd. | 118,361 | $736,010 |
|
Aristocrat Leisure Ltd. | 22,016 | 217,342 |
|
Australia & New Zealand Banking Group Ltd. | 203,388 | 3,861,241 |
|
Commonwealth Bank of Australia | 93,090 | 3,021,043 |
|
CSL Ltd. | 16,239 | 636,359 |
|
Macquarie Bank Ltd. | 62,842 | 2,911,895 |
|
National Australia Bank Ltd. | 135,073 | 3,648,090 |
|
Publishing & Broadcasting Ltd. | 44,604 | 552,810 |
|
Qantas Airways Ltd. | 215,610 | 546,799 |
|
QBE Insurance Group Ltd. | 68,007 | 1,065,998 |
|
Santos Ltd. | 322,826 | 2,631,882 |
|
Telstra Corp. Ltd. | 1,005,863 | 2,695,045 |
|
Westpac Banking Corp. | 46,510 | 793,677 |
|
|
| 23,318,191 |
|
|
|
|
|
Austria - 0.1% |
|
|
|
Raiffeisen International Bank Holding AG* | 2,521 | 215,423 |
|
Voestalpine AG | 854 | 119,684 |
|
|
| 335,107 |
|
|
|
|
|
Belgium - 2.8% |
|
|
|
Colruyt SA* | 6,708 | 1,006,372 |
|
Dexia | 68,260 | 1,768,104 |
|
Fortis SA/NV: |
|
|
|
Bearer | 112,321 | 4,019,163 |
|
Registered | 67,500 | 2,412,063 |
|
UCB SA | 59,498 | 2,932,078 |
|
Umicore | 15,464 | 2,145,434 |
|
|
| 14,283,214 |
|
|
|
|
|
Canada - 2.0% |
|
|
|
Bank of Montreal | 15,600 | 887,245 |
|
EnCana Corp. | 109,600 | 5,120,178 |
|
IPSCO, Inc. | 1,900 | 197,101 |
|
Royal Bank of Canada | 94,200 | 3,975,198 |
|
|
| 10,179,722 |
|
|
|
|
|
Denmark - 0.1% |
|
|
|
DSV A/S | 5,081 | 677,720 |
|
|
|
|
|
Finland - 4.8% |
|
|
|
Kesko Oyj | 39,400 | 1,231,461 |
|
Metso Oyj | 112,700 | 4,356,929 |
|
Neste Oil Oyj | 69,050 | 2,377,771 |
|
Nokia Oyj | 471,300 | 9,770,852 |
|
Rautaruukki Oyj | 95,800 | 3,544,276 |
|
Sampo Oyj | 155,900 | 3,286,950 |
|
|
| 24,568,239 |
|
|
|
|
|
EQUITY SECURITIES - Cont'd | Shares | Value |
|
France - 7.6% |
|
|
|
Air France-KLM | 19,174 | $452,202 |
|
AXA SA | 135,925 | 4,777,988 |
|
BNP Paribas SA | 106,404 | 9,899,590 |
|
Business Objects SA* | 53,645 | 1,961,243 |
|
Carrefour SA | 33,619 | 1,791,416 |
|
Compagnie Generale des Etablissements Michelin | 14,216 | 894,691 |
|
Groupe Danone SA (ADR) | 18,982 | 2,329,379 |
|
Lafarge SA | 14,755 | 1,674,549 |
|
L'Oreal SA | 63,171 | 5,574,415 |
|
Publicis Groupe SA | 6,255 | 244,473 |
|
Schneider Electric SA | 33,315 | 3,603,003 |
|
Societe Generale Groupe | 33,506 | 5,047,095 |
|
Vallourec SA | 635 | 614,298 |
|
|
| 38,864,342 |
|
|
|
|
|
Germany - 6.2% |
|
|
|
Altana AG | 54,211 | 3,365,079 |
|
Continental AG | 6,530 | 720,087 |
|
Deutsche Bank AG | 18,385 | 2,103,256 |
|
Deutsche Post AG | 33,428 | 839,495 |
|
Linde AG | 13,552 | 1,178,601 |
|
Muenchener Rueckversicherungs AG | 54,638 | 7,759,393 |
|
Puma AG Rudolf Dassler Sport | 720 | 273,070 |
|
Schering AG | 29,434 | 3,065,018 |
|
Volkswagen AG: |
|
|
|
Non-Voting Preferred | 72,885 | 4,006,707 |
|
Ordinary | 115,217 | 8,714,078 |
|
32,024,784 |
|
|
|
|
|
|
|
Greece - 0.4% |
|
|
|
Alpha Bank AE | 7,526 | 278,437 |
|
National Bank of Greece SA | 33,005 | 1,554,385 |
|
Piraeus Bank SA | 8,517 | 258,448 |
|
|
| 2,091,270 |
|
|
|
|
|
Hong Kong - 0.5% |
|
|
|
China Netcom Group Corp (Hong Kong) Ltd. | 239,000 | 421,948 |
|
Hong Kong Exchanges and Clearing Ltd. | 334,000 | 2,012,191 |
|
|
| 2,434,139 |
|
|
|
|
|
India - 0.3% |
|
|
|
Bajaj Auto Ltd. (GDR) | 4,775 | 290,798 |
|
GAIL India Ltd. (GDR) | 6,400 | 272,000 |
|
Ranbaxy Laboratories Ltd. (GDR) | 20,700 | 203,688 |
|
Satyam Computer Services Ltd. (ADR) | 13,800 | 603,888 |
|
|
| 1,370,374 |
|
|
|
|
|
Indonesia - 0.0% |
|
|
|
PT Indonesian Satellite Corp. Tbk | 202,000 | 114,482 |
|
PT Unilever Indonesia Tbk | 237,000 | 110,845 |
|
|
| 225,327 |
|
|
|
|
|
EQUITY SECURITIES - Cont'd | Shares | Value |
|
Ireland - 0.4% |
|
|
|
Allied Irish Banks plc | 16,900 | $404,110 |
|
DCC plc | 67,287 | 1,568,121 |
|
|
| 1,972,231 |
|
|
|
|
|
Italy - 1.5% |
|
|
|
Banca Monte dei Paschi di Siena SpA | 64,185 | 361,881 |
|
Capitalia SpA | 209,718 | 1,746,252 |
|
Italcementi SpA | 5,442 | 130,591 |
|
Sanpaolo IMI SpA | 79,916 | 1,432,720 |
|
UniCredito Italiano SpA | 367,436 | 2,660,353 |
|
Unipol SpA | 570,586 | 1,601,585 |
|
|
| 7,933,382 |
|
|
|
|
|
Japan - 22.8% |
|
|
|
Acom Co. Ltd. | 2 | 118 |
|
Advantest Corp. | 31,300 | 3,737,512 |
|
Canon, Inc. | 38,200 | 2,532,686 |
|
Central Japan Railway Co. | 49 | 483,765 |
|
Daiichi Sankyo Co. Ltd. | 69,500 | 1,588,216 |
|
Eisai Co. Ltd. | 36,100 | 1,576,178 |
|
Fujikura Ltd. | 356,000 | 4,038,878 |
|
Furukawa Electric Co. Ltd. | 332,000 | 2,757,836 |
|
Honda Motor Co. Ltd. | 166,200 | 10,311,911 |
|
Hoya Corp. | 89,700 | 3,626,325 |
|
JSR Corp. | 60,900 | 1,814,120 |
|
Kao Corp. | 38,000 | 1,002,596 |
|
Kawasaki Kisen Kaisha Ltd. | 161,000 | 952,338 |
|
Kobe Steel Ltd. | 861,000 | 3,275,603 |
|
Konami Corp. | 12,500 | 315,439 |
|
Kubota Corp. | 248,000 | 2,680,625 |
|
Kyocera Corp. | 12,900 | 1,144,032 |
|
Matsushita Electric Industrial Co. Ltd. | 101,000 | 2,247,883 |
|
Mazda Motor Corp. | 629,067 | 3,828,103 |
|
Mitsubishi Chemical Holdings Corp. | 94,500 | 583,914 |
|
Mitsubishi Gas Chemical Co., Inc. | 82,000 | 1,002,187 |
|
Mitsubishi Rayon Co. Ltd. | 330,000 | 2,707,519 |
|
Mitsui Trust Holdings, Inc. | 225,000 | 3,295,672 |
|
Mizuho Financial Group, Inc. | 1,753 | 14,367,752 |
|
NGK Spark Plug Co. Ltd. | 54,000 | 1,261,586 |
|
Nikon Corp. | 126,000 | 2,262,735 |
|
Nippon Paper Group, Inc. | 89 | 385,557 |
|
Nippon Telegraph & Telephone Corp. | 620 | 2,664,794 |
|
Nissan Motor Co. Ltd. | 319,000 | 3,795,583 |
|
Nitto Denko Corp. | 37,300 | 3,171,429 |
|
Ono Pharmaceutical Co. Ltd. | 14,500 | 684,923 |
|
Osaka Gas Co. Ltd. | 1,076,000 | 3,919,554 |
|
Resona Holdings, Inc.* | 47 | 162,007 |
|
Ricoh Co. Ltd. | 127,000 | 2,486,063 |
|
Shinko Electric Industries Co.Ltd | 12,000 | 363,590 |
|
SMC Corp. | 20,900 | 3,262,318 |
|
Sumitomo Electric Industries Ltd. | 32,300 | 512,698 |
|
THK Co. Ltd. | 38,000 | 1,222,520 |
|
Tokyo Electron Ltd. | 70,800 | 4,892,940 |
|
|
|
|
|
EQUITY SECURITIES - Cont'd | Shares | Value |
|
Japan - Cont'd |
|
|
|
Tokyo Gas Co. Ltd. | 461,000 | $2,020,639 |
|
Toyota Motor Corp. | 133,100 | 7,283,995 |
|
Ube Industries Ltd. | 835,000 | 2,466,020 |
|
Yamada Denki Co. Ltd. | 35,000 | 4,042,300 |
|
|
| 116,732,459 |
|
|
|
|
|
Mexico - 0.0% |
|
|
|
Empresas ESM, SA de CV (a)(b)(i)* | 2,989 | 1 |
|
|
|
|
|
Netherlands - 7.6% |
|
|
|
ABN AMRO Holding NV | 365,572 | 10,977,912 |
|
Aegon NV | 351,360 | 6,512,361 |
|
Buhrmann NV | 127,766 | 2,264,202 |
|
Euronext NV | 26,833 | 2,216,381 |
|
Hagemeyer NV* | 466,021 | 2,358,787 |
|
ING Groep NV (CVA) | 369,386 | 14,616,559 |
|
|
| 38,946,202 |
|
|
|
|
|
Norway - 1.4% |
|
|
|
Orkla ASA | 44,300 | 2,198,461 |
|
Statoil ASA | 177,200 | 5,113,958 |
|
|
| 7,312,419 |
|
|
|
|
|
Philippines - 0.0% |
|
|
|
Equitable PCI Bank | 101,000 | 148,239 |
|
|
|
|
|
Portugal - 0.3% |
|
|
|
Portugal Telecom SGPS SA* | 130,511 | 1,585,727 |
|
|
|
|
|
Russia - 0.1% |
|
|
|
VimpelCom (ADR)* | 12,500 | 537,625 |
|
|
|
|
|
Singapore - 0.1% |
|
|
|
Singapore Telecommunications Ltd. | 180,000 | 295,200 |
|
United Overseas Bank Ltd. | 41,000 | 395,829 |
|
|
| 691,029 |
|
|
|
|
|
South Africa - 1.3% |
|
|
|
Alexander Forbes Ltd. | 74,500 | 180,955 |
|
BIDVest Group Ltd. | 52,485 | 972,102 |
|
Community Growth Fund* | 894,098 | 866,599 |
|
Investec Ltd. | 8,587 | 436,675 |
|
Nedbank Group Ltd. | 49,765 | 1,038,556 |
|
Newco, Inc.* | 55,800 | 101,900 |
|
Pick'n Pay Holdings Ltd. | 61,200 | 130,255 |
|
Pick'n Pay Stores Ltd. | 54,500 | 267,409 |
|
Spar Group Ltd. | 33,000 | 205,077 |
|
Telkom South Africa Ltd. | 60,898 | 1,589,482 |
|
Tiger Brands Ltd. | 30,100 | 850,429 |
|
|
| 6,639,439 |
|
|
|
|
|
|
|
|
|
EQUITY SECURITIES - Cont'd | Shares | Value |
|
Spain - 5.0% |
|
|
|
Acciona SA | 8,641 | $1,348,290 |
|
Actividades de Construccion y Servicios SA | 19,726 | 767,626 |
|
Banco Bilbao Vizcaya Argentaria SA | 139,656 | 2,919,039 |
|
Gas Natural SDG SA | 43,757 | 1,268,851 |
|
Metrovacesa SA | 3,751 | 319,163 |
|
Repsol YPF SA | 286,960 | 8,164,434 |
|
Sacyr Vallehermoso SA | 59,879 | 2,042,340 |
|
Telefonica SA | 565,584 | 8,890,250 |
|
|
| 25,719,993 |
|
|
|
|
|
Sweden - 1.7% |
|
|
|
Hennes & Mauritz AB | 56,750 | 2,074,727 |
|
Holmen AB | 26,300 | 1,113,855 |
|
Nordea Bank AB | 84,500 | 1,046,970 |
|
Skandinaviska Enskilda Banken AB | 19,200 | 477,019 |
|
SKF AB | 26,200 | 428,333 |
|
Ssab Svenskt Stal AB | 3,600 | 172,857 |
|
Svenska Cellulosa AB | 52,600 | 2,315,734 |
|
Svenska Handelsbanken AB | 19,500 | 543,462 |
|
TeliaSonera AB | 109,500 | 658,276 |
|
|
| 8,831,233 |
|
|
|
|
|
Switzerland - 5.2% |
|
|
|
Credit Suisse Group | 66,665 | 3,743,557 |
|
Logitech International SA* | 26,851 | 1,073,916 |
|
Roche Holding AG | 79,778 | 11,887,238 |
|
Swiss Reinsurance AG | 27,258 | 1,906,271 |
|
Zurich Financial Services Group AG* | 33,883 | 7,965,815 |
|
|
| 26,576,797 |
|
|
|
|
|
Thailand - 0.1% |
|
|
|
Bangkok Bank PCL (NVDR) | 104,300 | 292,593 |
|
Bangkok Dusit Medical Service PCL | 19,000 | 12,347 |
|
Charoen Pokphand Foods PCL | 930,000 | 126,856 |
|
|
| 431,796 |
|
|
|
|
|
United Kingdom - 19.2% |
|
|
|
Aegis Group plc | 446,172 | 1,061,187 |
|
Aviva plc | 341,933 | 4,754,686 |
|
Barclays plc | 294,184 | 3,446,030 |
|
Barratt Developments plc | 174,434 | 3,212,843 |
|
BG Group plc | 462,005 | 5,781,491 |
|
British Airways plc* | 90,807 | 557,910 |
|
BT Group plc | 893,325 | 3,449,251 |
|
Bunzl plc | 129,619 | 1,539,755 |
|
Cadbury Schweppes plc | 356,818 | 3,549,810 |
|
DSG International plc | 720,418 | 2,311,763 |
|
George Wimpey plc | 206,523 | 2,009,698 |
|
GlaxoSmithKline plc | 528,162 | 13,825,028 |
|
GUS plc | 79,667 | 1,461,818 |
|
Hays plc | 161,792 | 456,567 |
|
HBOS plc | 338,109 | 5,651,224 |
|
HSBC Holdings plc | 311,909 | 5,235,011 |
|
|
|
|
|
EQUITY SECURITIES - Cont'd | Shares | Value |
|
United Kingdom - Cont'd |
|
|
|
IMI plc | 90,268 | $888,613 |
|
Imperial Chemical Industries plc | 473,248 | 2,847,916 |
|
International Power plc | 156,771 | 771,640 |
|
J Sainsbury plc | 178,986 | 1,035,078 |
|
Johnson Matthey plc | 50,226 | 1,219,485 |
|
Lloyds TSB Group plc | 214,762 | 2,056,256 |
|
Next plc | 96,004 | 2,755,089 |
|
Northern Foods plc | 679,817 | 1,152,813 |
|
Old Mutual plc | 139,000 | 484,863 |
|
Persimmon plc | 61,871 | 1,429,050 |
|
Royal & Sun Alliance Insurance Group plc | 1,362,552 | 3,264,428 |
|
Royal Bank of Scotland Group plc | 147,419 | 4,802,348 |
|
Sage Group plc | 383,011 | 1,833,585 |
|
Schroders plc | 57,121 | 1,181,245 |
|
Scottish & Southern Energy plc | 118,360 | 2,330,310 |
|
Scottish Power plc | 191,978 | 1,943,286 |
|
Taylor Woodrow plc | 322,465 | 2,265,825 |
|
Unilever plc | 282,174 | 2,890,644 |
|
United Utilities plc | 105,691 | 1,267,461 |
|
Vodafone Group plc | 928,959 | 1,946,910 |
|
Wolseley plc | 62,058 | 1,526,193 |
|
|
| 98,197,110 |
|
|
|
|
|
United States - 0.7% |
|
|
|
Distributed Energy Systems Corp.: |
|
|
|
Common Stock* | 274,242 | 1,947,118 |
|
Warrants (strike price $2.80/share, expires 12/17/06): |
|
|
|
Tranche 1 (b)(i)* | 70,759 | 304,264 |
|
Tranche 2 (b)(i)* | 23,587 | 101,424 |
|
Evergreen Solar, Inc.* | 1,400 | 21,560 |
|
H2Gen Innovations, Inc.: |
|
|
|
Common Stock (b)(i)* | 2,077 | - |
|
Series A Preferred (b)(i)* | 69,033 | 69,033 |
|
Series A Preferred Warrants: |
|
|
|
(strike price $1.00/share, expires 1/1/12) (b)(i)* | 1,104 | - |
|
Series B Preferred (b)(i)* | 161,759 | 161,759 |
|
Series B Preferred Warrants |
|
|
|
(strike price $1.00/share, expires 10/31/13) (b)(i)* | 27,025 | - |
|
Mayer Laboratories, Inc. Warrants |
|
|
|
(strike price $6.50/share, expires 12/31/07) (b)(i)* | 11,538 | - |
|
Powerspan Corp.: |
|
|
|
Series A, Preferred (b)(i)* | 45,455 | 140,136 |
|
Series B, Preferred (b)(i)* | 20,000 | 73,964 |
|
Series C, Preferred (b)(i)* | 239,566 | 299,457 |
|
Series C, Preferred Warrants |
|
|
|
(strike price $1.14/share, expires 6/30/08) (b)(i)* | 198 | 22 |
|
ProFund International SA: |
|
|
|
Common (b)(i)* | 2,500 | - |
|
Preferred (b)(i)* | 33,661 | 12,738 |
|
RF Technology, Inc., Series A, Preferred (b)(i)* | 53,844 | 1 |
|
|
|
|
|
|
|
|
|
EQUITY SECURITIES - Cont'd | Shares | Value |
|
United States - Cont'd |
|
|
|
SMARTTHINKING, Inc.: |
|
|
|
Preferred Warrants |
|
|
|
(strike price $0.01/share, expires 5/26/15) (b)(i)* | 11,920 | $2,143 |
|
Series 1-A, Convertible Preferred (b)(i)* | 104,297 | 159,398 |
|
Series 1-B, Convertible Preferred (b)(i)* | 163,588 | 31,050 |
|
|
| 3,324,067 |
|
|
|
|
|
Total Equity Securities (Cost $410,452,783) |
| 495,952,178 |
|
|
|
|
|
| Adjusted |
|
|
Limited Partnership Interest - 0.5% | Basis |
|
|
Balkan Financial Sector Equity Fund* CV(b)(i) | $22,836 | 23,033 |
|
China Environment Fund 2004 (b)(i)* | 62,578 | 62,578 |
|
GNet Defta Development Holdings LLC (a)(b)(i)* | 400,000 | 400,000 |
|
SAM Sustainability Private Equity Fund (b)(i)* | 1,049,933 | 697,360 |
|
SEAF Central and Eastern European Growth Fund LLC (a)(b)(i)* | 643,811 | 635,216 |
|
SEAF India International Growth Fund LLC (b)(i)* | 150,000 | 150,000 |
|
ShoreCap International (b)(i)* | 390,050 | 414,294 |
|
Terra Capital Investments (b)(i)* | 469,590 | 1 |
|
|
|
|
|
Total Limited Partnership Interest (Cost $3,188,798) |
| 2,382,482 |
|
|
|
|
|
|
|
|
|
| Principal |
|
|
Corporate Notes - 0.0% | Amount |
|
|
Mayer Laboratories, Inc., 6.00%, 12/31/06 (b)(i) | 97,640 | 24,410 |
|
|
|
|
|
Total Corporate Notes (Cost $97,640) |
| 24,410 |
|
|
|
|
|
|
|
|
|
High Social Impact Investments - 0.7% |
|
|
|
Calvert Social Investment Foundation Notes, |
|
|
|
3.00%, 7/1/08 (b)(i)(r) | 3,738,819 | 3,685,803 |
|
|
|
|
|
Total High Social Impact Investments (Cost $3,738,819) |
| 3,685,803 |
|
|
|
|
|
|
|
|
|
Certificates of Deposit - 0.0% |
|
|
|
Self Help Credit Union, 4.85%, 2/22/07 (b)(k) | 100,000 | 99,600 |
|
ShoreBank, 4.30%, 3/15/07 (b)(k) | 100,000 | 99,650 |
|
|
|
|
|
Total Certificates of Deposit (Cost $200,000) |
| 199,250 |
|
|
|
|
|
|
|
|
|
U.S. Government Agencies | Principal |
|
|
and Instrumentalities - 1.3% | Amount | Value |
|
Federal Home Loan Bank Discount Notes, 4/3/06 | $6,800,000 | $6,798,262 |
|
|
|
|
|
Total U.S. Government Agencies and |
|
|
|
Instrumentalities (Cost $6,798,262) |
| 6,798,262 |
|
|
|
|
|
TOTAL INVESTMENTS (Cost $424,453,466) - 99.3% |
| 509,042,385 |
|
Other assets and liabilities, net - 0.7% |
| 3,515,054 |
|
Net Assets - 100% |
| $512,557,439 |
|
|
|
|
|
|
|
|
|
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: |
|
|
|
Class A: 15,495,730 shares outstanding |
| $265,512,648 |
|
Class B: 784,463 shares outstanding |
| 14,143,581 |
|
Class C: 1,422,006 shares outstanding |
| 24,374,515 |
|
Class I: 4,602,757 shares outstanding |
| 92,180,889 |
|
Undistributed net investment income |
| 997,937 |
|
Accumulated net realized gain (loss) on investments |
| 30,794,645 |
|
Net unrealized appreciation (depreciation) on investments |
| 84,553,224 |
|
Net Assets |
| $512,557,439 |
|
|
|
|
|
|
|
|
|
Net Asset Value Per Share |
|
|
|
Class A (based on net assets of $355,690,616) |
| $22.95 |
|
Class B (based on net assets of $16,563,351) |
| $21.11 |
|
Class C (based on net assets of $29,308,357) |
| $20.61 |
|
Class I (based on net assets of $110,995,115) |
| $24.11 |
|
Abbreviations: |
|
ADR: American Depository Receipt | LP: Limited Partnership |
CVA: Certificaten Van Aandelen | NVDR: Non-Voting Depository Receipt |
GDR: Global Depository Receipt |
|
LLC: Limited Liability Corporation |
|
* Non-income producing security.
(a) Affiliated company.
(b) This security was valued by the Board of Directors. See Note A.
(e) Security is exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
(i) Restricted securities represent 1.5% of net assets of the Fund.
(k) These certificates of deposit are fully insured by agencies of the federal government.
(r) The coupon rate shown on floating or adjustable rate securities represents the rate period end.
See notes to financial statements.
Forward Foreign Currency Contracts, Open at March 31, 2006
Contracts to Receive/Deliver | In Exchange For | Settlement Date | Value (US$) | Unrealized Appreciation/Depreciation (US$) | ||
Purchases |
|
|
|
|
|
|
Australian Dollar | 3,261,768 | US Dollars | $2,434,525 | 26-May-06 | $2,334,524 | ($100,001) |
Australian Dollar | 3,279,326 | US Dollars | 2,400,893 | 26-May-06 | 2,347,091 | (53,802) |
Canadian Dollar | 760,150 | US Dollars | 661,165 | 26-May-06 | 652,642 | (8,523) |
Swiss Franc | 2,676,628 | US Dollars | 2,064,235 | 26-May-06 | 2,067,009 | 2,774 |
Swiss Franc | 2,676,627 | US Dollars | 2,058,928 | 26-May-06 | 2,067,008 | 8,080 |
Euro | 2,185,829 | US Dollars | 2,610,195 | 26-May-06 | 2,662,242 | 52,047 |
Euro | 2,185,829 | US Dollars | 2,608,879 | 26-May-06 | 2,662,242 | 53,363 |
Euro | 2,185,829 | US Dollars | 2,624,022 | 26-May-06 | 2,662,242 | 38,220 |
Euro | 2,185,829 | US Dollars | 2,613,683 | 26-May-06 | 2,662,242 | 48,559 |
Euro | 2,185,829 | US Dollars | 2,621,998 | 26-May-06 | 2,662,242 | 40,244 |
Euro | 2,185,829 | US Dollars | 2,621,858 | 26-May-06 | 2,662,242 | 40,384 |
Euro | 2,185,829 | US Dollars | 2,614,558 | 26-May-06 | 2,662,242 | 47,684 |
British Pound | 2,012,072 | US Dollars | 3,496,172 | 26-May-06 | 3,501,795 | 5,623 |
British Pound | 2,326,299 | US Dollars | 4,046,383 | 26-May-06 | 4,048,673 | 2,290 |
British Pound | 1,822,811 | US Dollars | 3,168,598 | 26-May-06 | 3,172,406 | 3,808 |
Japanese Yen | 254,435,252 | US Dollars | 2,175,051 | 26-May-06 | 2,182,235 | 7,184 |
Japanese Yen | 254,435,251 | US Dollars | 2,173,620 | 26-May-06 | 2,182,235 | 8,615 |
Japanese Yen | 266,646,598 | US Dollars | 2,283,567 | 26-May-06 | 2,286,969 | 3,402 |
Swedish Krona | 1,061,350 | US Dollars | 134,337 | 26-May-06 | 137,222 | 2,885 |
|
|
| Total Purchases | $202,836 | ||
|
|
|
|
|
|
|
Sales |
|
|
|
|
|
|
Australian Dollar | 3,279,326 | US Dollars | $2,408,294 | 26-May-06 | $2,347,091 | $61,203 |
Australian Dollar | 3,261,768 | US Dollars | 2,387,252 | 26-May-06 | 2,334,524 | 52,728 |
Canadian Dollar | 760,150 | US Dollars | 661,577 | 26-May-06 | 652,642 | 8,935 |
Swiss Franc | 2,676,628 | US Dollars | 2,057,352 | 26-May-06 | 2,067,008 | (9,656) |
Swiss Franc | 2,676,627 | US Dollars | 2,057,994 | 26-May-06 | 2,067,009 | (9,015) |
Euro | 2,185,829 | US Dollars | 2,614,586 | 26-May-06 | 2,662,242 | (47,656) |
Euro | 2,185,829 | US Dollars | 2,614,145 | 26-May-06 | 2,662,242 | (48,097) |
Euro | 2,185,829 | US Dollars | 2,613,928 | 26-May-06 | 2,662,242 | (48,314) |
Euro | 2,185,829 | US Dollars | 2,618,477 | 26-May-06 | 2,662,242 | (43,765) |
Euro | 2,185,829 | US Dollars | 2,612,833 | 26-May-06 | 2,662,242 | (49,409) |
Euro | 2,185,829 | US Dollars | 2,616,095 | 26-May-06 | 2,662,242 | (46,147) |
Euro | 2,185,829 | US Dollars | 2,614,562 | 26-May-06 | 2,662,242 | (47,680) |
British Pound | 1,822,811 | US Dollars | 3,211,831 | 26-May-06 | 3,172,406 | 39,425 |
British Pound | 2,012,072 | US Dollars | 3,510,871 | 26-May-06 | 3,501,795 | 9,076 |
British Pound | 2,326,299 | US Dollars | 4,054,111 | 26-May-06 | 4,048,673 | 5,438 |
Japanese Yen | 521,081,850 | US Dollars | 4,433,407 | 26-May-06 | 4,469,204 | (35,797) |
Japanese Yen | 254,435,251 | US Dollars | 2,179,130 | 26-May-06 | 2,182,235 | (3,105) |
Swedish Krona | 1,061,350 | US Dollars | 135,335 | 26-May-06 | 137,222 | (1,887) |
|
|
| Total Sales | ($213,723) | ||
|
| Net Unrealized Depreciation | ($10,887) |
Restricted Securities | Acquisition Dates | Cost |
|
Balkan Financial Sector Equity Fund CV | 01/12/06 | $22,836 |
|
Calvert Social Investment Foundation Notes, 2.17%, 7/1/08 | 07/1/2005 | 3,738,819 |
|
China Environment Fund 2004, LP | 09/15/05 - 03/17/06 | 62,578 |
|
Distributed Energy Systems Corp. Warrants, |
|
|
|
(strike price $2.80/share, expires 12/17/06): |
|
|
|
Tranche 1 | 01/06/04 | - |
|
Tranche 2 | 01/06/04 | - |
|
Empresas ESM, SA de CV | 10/25/01 - 10/29/02 | 350,000 |
|
GNet Defta Development Holdings LLC | 08/30/2005 | 400,000 |
|
H2Gen Innovations, Inc.: |
|
|
|
Common Stock | 11/4/2004 | - |
|
Common Warrants (strike price $1.00/share, exp. 10/1/13) | 11/4/2004 | - |
|
Series A, Preferred | 11/4/2004 | 251,496 |
|
Series A, Preferred Warrants |
|
|
|
(strike price $1.00/share, expires 1/1/12) | 1/4/2004 | - |
|
Series B, Preferred | 10/21/04-10/27/04 | 161,759 |
|
Mayer Laboratories, Inc.: |
|
|
|
Note, 6.00%, 12/31/06 | 12/31/1996 | 97,640 |
|
Warrants (strike price $6.50/share, expires 12/31/07) | 01/21/03 | - |
|
Powerspan Corp: |
|
|
|
Series A, Preferred | 08/20/1997 | 250,000 |
|
Series B, Preferred | 10/05/99 | 200,000 |
|
Series C, Preferred | 12/21/2004 | 273,105 |
|
Series C, Preferred Warrants |
|
|
|
(strike price $1.14/share, expires 6/30/08) | 12/21/2004 | - |
|
ProFund International SA: |
|
|
|
Common | 08/29/95 - 05/25/99 | 2,500 |
|
Preferred | 07/10/96 - 09/08/03 | 33,660 |
|
RF Technology, Inc., Series A, Preferred | 07/16/99 - 03/23/01 | 299,990 |
|
SAM Sustainability Private Equity Fund, LP | 07/19/01 - 02/17/06 | 1,049,933 |
|
SEAF Central & Eastern European Growth Fund LLC, LP | 08/10/00 - 02/23/06 | 643,811 |
|
SEAF India International Growth Fund LLC, LP | 03/22/05 - 05/11/05 | 150,000 |
|
ShoreCap International LP | 08/12/04 - 03/02/06 | 390,050 |
|
SMARTHINKING, Inc.: |
|
|
|
Series 1-A, Convertible Preferred | 04/22/03 - 05/08/03 | 159,398 |
|
Series 1-B, Convertible Preferred | 06/10/2003 | 250,000 |
|
Series 1-B, Preferred Warrants |
|
|
|
(strike price $0.01/share, expires 5/26/15) | 05/27/05 | - |
|
Terra Capital Investments, Inc., LP | 11/23/98 - 03/14/06 | 469,590 |
|
See notes to financial statements.
Statement of Operations
Six Months Ended March 31, 2006
Net Investment Income |
|
|
Investment Income: |
|
|
Dividend income (net of foreign taxes withheld of $310,244) | $4,744,980 |
|
Interest income | 390,600 |
|
Total investment income | 5,135,580 |
|
|
|
|
Expenses: |
|
|
Investment advisory fee | 1,684,515 |
|
Transfer agency fees and expenses | 445,863 |
|
Administrative fees | 697,464 |
|
Distribution Plan expenses: |
|
|
Class A | 394,103 |
|
Class B | 74,928 |
|
Class C | 125,441 |
|
Directors' fees and expenses | 40,243 |
|
Custodian fees | 230,479 |
|
Registration fees | 26,291 |
|
Reports to shareholders | 83,825 |
|
Professional fees | 25,625 |
|
Miscellaneous | 82,883 |
|
Total expenses | 3,911,660 |
|
Fees waived | (3,766) |
|
Fees paid indirectly | (35,162) |
|
Net expenses | 3,872,732 |
|
|
|
|
Net Investment Income | 1,262,848 |
|
|
|
|
Realized and Unrealized Gain (Loss) |
|
|
Net realized gain (loss) on: |
|
|
Investments | 36,270,614 |
|
Foreign currency transactions | (850,353) |
|
Futures | 1,843,131 |
|
| 37,263,392 |
|
|
|
|
Change in unrealized appreciation or (depreciation) on: |
|
|
Investments and foreign currencies |
|
|
(net of deferred foreign taxes of $27,148) | 23,502,244 |
|
Assets and liabilities denominated in foreign currencies | 277,467 |
|
Futures | (244,864) |
|
| 23,534,847 |
|
|
|
|
Net Realized and Unrealized Gain |
|
|
(Loss) | 60,798,239 |
|
|
|
|
Increase (Decrease) in Net Assets |
|
|
Resulting From Operations | $62,061,087 |
|
See notes to financial statements.
Statements of Changes in Net Assets
| Six Months Ended | Year Ended |
|
| March 31, | September 30, |
|
Increase (Decrease) in Net Assets | 2006 | 2005 |
|
Operations: |
|
|
|
Net investment income | $1,262,848 | $4,585,305 |
|
Net realized gain (loss) | 37,263,392 | 18,362,744 |
|
Change in unrealized appreciation or (depreciation) | 23,534,847 | 48,373,925 |
|
|
|
|
|
Increase (Decrease) in Net Assets |
|
|
|
Resulting From Operations | 62,061,087 | 71,321,974 |
|
|
|
|
|
Distributions to shareholders from |
|
|
|
Net investment income: |
|
|
|
Class A Shares | (2,476,921) | (1,466,908) |
|
Class B Shares | (3,122) | -- |
|
Class C Shares | (34,850) | -- |
|
Class I Shares | (1,133,678) | (765,536) |
|
Total distributions | (3,648,571) | (2,232,444) |
|
|
|
|
|
Capital share transactions: |
|
|
|
Shares sold: |
|
|
|
Class A Shares | 39,829,723 | 74,461,354 |
|
Class B Shares | 1,796,119 | 4,136,624 |
|
Class C Shares | 4,496,100 | 7,979,089 |
|
Class I Shares | 13,411,671 | 35,815,199 |
|
Reinvestment of distributions: |
|
|
|
Class A Shares | 2,262,214 | 1,339,677 |
|
Class B Shares | 2,808 | -- |
|
Class C Shares | 28,264 | -- |
|
Class I Shares | 1,061,407 | 726,130 |
|
Redemption fees: |
|
|
|
Class A Shares | 530 | 2,879 |
|
Class B Shares | 307 | -- |
|
Class C Shares | 4 | 1 |
|
Shares redeemed: |
|
|
|
Class A Shares | (23,648,950) | (42,246,113) |
|
Class B Shares | (1,408,916) | (1,072,475) |
|
Class C Shares | (1,370,054) | (3,222,197) |
|
Class I Shares | (6,528,618) | (8,208,056) |
|
Total capital share transactions | 29,932,609 | 69,712,112 |
|
|
|
|
|
Total Increase (Decrease) in Net Assets | 88,345,125 | 138,801,642 |
|
|
|
|
|
Net Assets |
|
|
|
Beginning of period | 424,212,314 | 285,410,672 |
|
End of period (including undistributed net investment income of $997,937 and $3,383,660, respectively) | $512,557,439 | $424,212,314 |
|
See notes to financial statements.
Statements of Changes in Net Assets
| Six Months Ended | Year Ended |
|
| March 31, | September 30, |
|
Capital Share Activity | 2006 | 2005 |
|
Shares sold: |
|
|
|
Class A Shares | 1,865,540 | 3,970,828 |
|
Class B Shares | 91,431 | 242,353 |
|
Class C Shares | 235,207 | 474,886 |
|
Class I Shares | 616,613 | 1,830,778 |
|
Reinvestment of distributions: |
|
|
|
Class A Shares | 107,520 | 70,565 |
|
Class B Shares | 145 | -- |
|
Class C Shares | 1,493 | -- |
|
Class I Shares | 48,093 | 36,599 |
|
Shares redeemed: |
|
|
|
Class A Shares | (1,121,412) | (2,261,560) |
|
Class B Shares | (71,694) | (61,753) |
|
Class C Shares | (72,122) | (192,016) |
|
Class I Shares | (282,586) | (421,387) |
|
Total capital share activity | 1,418,228 | 3,689,293 |
|
Notes to Financial Statements
Note A -- Significant Accounting Policies
General: The Calvert World Values International Equity Fund (the "Fund"), a series of Calvert World Values Fund, Inc., is registered under the Investment Company Act of 1940 as a diversified, open-end management investment company. The operation of each series is accounted for separately. The Fund offers four classes of shares of capital stock. Class A shares are sold with a maximum front-end sales charge of 4.75%. Class B shares are sold without a front-end sales charge. With certain exceptions, the Fund will impose a deferred sales charge at the time of redemption, depending on how long investors have owned the shares. Class C shares are sold without a front-end sales charge. With certain exceptions, the Fund will impose a deferred sales charge on shares sold within one year of purchase. Class B and Class C shares have higher levels of expenses than Class A shares. Class I shares require a minimum account balance of $1,000,000. The $1 million minimum initial investment may be waived for certain institut ional accounts, where it is believed to be in the best interest of the Fund and its shareholders. Class I shares have no front-end or deferred sales charge and have lower levels of expenses than Class A shares. Each class has different: (a) dividend rates, due to differences in Distribution Plan expenses and other class-specific expenses, (b) exchange privileges and (c) class-specific voting rights.
Security Valuation: Net asset value per share is determined every business day as of the close of the regular session of the New York Stock Exchange (generally 4:00 p.m. Eastern time). The Fund uses independent pricing services approved by the Board of Directors to value their investments wherever possible. Securities for which market quotations are available are valued at last sale price or official closing price on the primary market or exchange in which they trade. Foreign securities are valued based on quotations from the principal market in which such securities are normally traded. If events occur after the close of the principal market in which foreign securities are traded, and before the Fund's net asset value is determined, that are expected to materially affect the value of those securities, then they are valued at their fair value taking these events into account. Short-term notes are stated at amortized cost, which approximates fair value. The Fund may invest in securities whose resale is sub ject to restrictions. Investments for which market quotations are not available or deemed not reliable are fair valued in good faith under the direction of the Board of Directors.
The Fund has retained a third party fair value pricing service to quantitatively analyze the price movement of its holdings on foreign exchanges and to automatically fair value if the variation from the prior day's closing price exceeds specified parameters.
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. 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 for the investments existed, and the differences could be material.
At March 31, 2006, securities valued at $7,647,335 or 1.5% of net assets, were fair valued in good faith under the direction of the Board of Directors.
Repurchase Agreements: The Fund may enter into repurchase agreements with recognized financial institutions or registered broker/dealers and, in all instances, holds underlying securities with a value exceeding the total repurchase price, including accrued interest. Although risk is mitigated by the collateral, the Fund could experience a delay in recovering its value and a possible loss of income or value if the counterparty fails to perform in accordance with the terms of the agreement.
Futures Contracts: The Fund may enter into futures contracts agreeing to buy or sell a financial instrument for a set price at a future date. Initial margin deposits of either cash or securities as required by the broker are made upon entering into the contract. While the contract is open, daily variation margin payments are made to or received from the broker reflecting the daily change in market value of the contract and are recorded for financial reporting purposes as unrealized gains or losses by the Fund. When a futures contract is closed, a realized gain or loss is recorded equal to the difference between the opening and closing value of the contract. The risks associated with entering into futures contracts may include the possible illiquidity of the secondary market which would limit the Fund's ability to close out a futures contract prior to the settlement date, an imperfect correlation between the value of the contracts and the underlying financial instruments, or that the counterparty will fail to perform its obligations under the contracts' terms.
Restricted Securities: The Fund may invest in securities that are subject to legal or contractual restrictions on resale. Generally, these securities may only be sold publicly upon registration under the Securities Act of 1933 or in transactions exempt from such registration. Information regarding restricted securities is included at the end of the Fund's Statement of Net Assets.
Security Transactions and Net Investment Income: Security transactions are accounted for on trade date. Realized gains and losses are recorded on an identified cost basis and may include proceeds from litigation. 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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Interest income, which includes amortization of premium and accretion of discount on debt securities, is accrued as earned. 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.
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 and foreign currencies is included in the net realized and unrealized gain or loss on securities and foreign currencies.
Forward Currency Contracts: The Fund may enter into forward currency contracts to protect the value of securities and related receivables and payables against changes in future foreign exchange rates and to hedge against its currency exposure relative to that of the MSCI EAFE Index. The Fund's risks in using these contracts include movement in the values of the foreign currencies relative to the U.S. dollar, and the ability of the counterparties to fulfill their obligations under the contracts.
Forward currency contracts are valued at their quoted daily settlement prices. The aggregate principal amounts of the contracts are not recorded in the financial statements. Fluctuations in the value of the contracts are recorded in the Statement of Net Assets as an asset and/or liability and in the Statement of Operations as unrealized appreciation or depreciation until the contracts are closed, when they are recorded as realized forward currency contract gains or losses.
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 accounting principles generally accepted in the United States 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: The Fund charges a 2% redemption fee on redemptions, including exchanges, made within 30 days of purchase in the same Fund (within five days for Class I shares). The redemption fee is paid to the Fund, and is accounted for as an addition to paid-in capital. The fee is intended to discourage market-timers by ensuring that short-term trading costs are borne by the investors making the transactions and not the shareholders already in the Fund.
Expense Offset Arrangement: The Fund has arrangements with its custodian banks 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 banks. These credits are used to reduce the Fund's expenses. Such deposit arrangements may be an alternative to overnight investments.
Federal Income Taxes: No provision for federal income or excise tax is required since the Fund intends to continue to qualify as a regulated investment company under the Internal Revenue Code and to distribute substantially all of its taxable earnings.
Note B -- Related Party Transactions
Calvert Asset Management Company, Inc. (the "Advisor") is wholly-owned by Calvert Group, Ltd. ("Calvert"), which is indirectly wholly owned by UNIFI Mutual Holding Company. The Advisor provides investment advisory services and pays the salaries and fees of officers and Directors of the Fund who are employees of the Advisor or its affiliates. For its services, the Advisor receives a monthly fee based on the following annual rates of average daily net assets: .75% on the first $250 million, .725% on the next $250 million and .675% on the excess of $500 million. Under the terms of the agreement $309,957 was payable at period end. In addition, $145,705 was payable at period end for operating expenses paid by the Advisor during March 2006. For the six months ended March 31, 2006, the Advisor waived $3,766 of its fee.
The Advisor has contractually agreed to limit net annual fund operating expenses through January 31, 2007 for Class I. The contractual expense cap is 1.10%. For the purposes of this expense limit, operating expenses do not include interest expense, brokerage commissions, taxes, and extraordinary expenses. To the extent any expense offset credits are earned, the Advisor's obligation under the contractual limitation may be reduced and the Advisor may benefit from the expense offset arrangement.
Calvert Distributors, Inc., an affiliate of the Advisor, is the distributor and principal underwriter for the Fund. Distribution Plans, adopted by Class A, Class B and Class C shares, allow the Fund to pay the Distributor for expenses and services associated with distribution of shares. The expenses paid may not exceed .35%, 1.00% and 1.00% annually of average daily net assets of each Class A, Class B and Class C shares, respectively. Class I shares do not have Distribution Plan expenses. Under the terms of agreement $111,088 was payable at period end.
The Distributor received $90,543 as its portion of commissions charged on sales of the Fund's Class A shares for the six months ended March 31, 2006.
Calvert Shareholder Services, Inc. ("CSSI"), an affiliate of the Advisor, is the shareholder servicing agent for the Fund. For its services, CSSI received a fee of $93,026 for the six months ended March 31, 2006. Under the terms of the agreement $16,616 was payable at period end. Boston 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 .35% for Class A, Class B and Class C shares and .15% for Class I shares, based on their average daily net assets. Under the terms of the agreement $130,097 was payable at period end.
The Fund invests in Community Investment Notes issued by the Calvert Social Investment Foundation (the "CSI Foundation"). The CSI Foundation is a 501(c)(3) non-profit organization that receives in-kind support from the Calvert Group, Ltd. and its subsidiaries. The Fund has received from the Securities and Exchange Commission an exemptive order permitting the Fund to make investments in these notes under certain conditions.
On December 2, 2005, shareholders approved the reorganization of several Calvert Fund Boards. As a result of this reorganization, Directors now oversee additional portfolios. Each Director of the Fund who is not an employee of the Advisor or its affiliates receives an annual retainer of $34,000 ($9,500 prior to December 2, 2005) plus $2,000 ($500 prior to December 2, 2005) for each Board meeting attended. An additional Chair support fee of $24,000 annually is paid to the Fund Chair. Additional fees of up to $10,000 ($5,000 prior to December 2, 2005) annually may be paid to the Chairperson of special committees of the Board and to the lead disinterested Director. Director's fees are
allocated to each of the funds served.
Note C -- Investment Activity
During the period, cost of purchases and proceeds from sales of investments, other than short-term securities, were $271,698,139 and $233,072,110, respectively.
The cost of investments owned at March 31, 2006 for federal income tax purposes was $424,768,342. Net unrealized appreciation aggregated $84,274,043 of which $89,947,525 related to appreciated securities and $5,673,482 related to depreciated securities.
Net capital loss carryforwards of $359,484 (from Calvert South Africa Fund that merged into the Fund in September 2002), and $6,142,100 expire on September 30, 2009, and September 30, 2011, respectively.
The Fund's use of net capital loss carryforwards from Calvert South Africa Fund may be limited under certain tax provisions.
Note D -- Line of Credit
A financing agreement is in place with all Calvert Group Funds (except for the Calvert Social Investment Fund's Balanced and Enhanced Equity Portfolios, the CVS Calvert Social Balanced Portfolio and the CVS Ameritas Index 500 Portfolio) and State Street Corporation ("SSC"). Under the agreement, SSC provides an unsecured line of credit facility, in the aggregate amount of $50 million ($25 million committed and $25 million uncommitted), accessible by the Funds for temporary or emergency purposes only. Borrowings under this committed facility bear interest at the overnight Federal Funds Rate plus .50% per annum. A commitment fee of .10% per annum is incurred on the unused portion of the committed facility, which is allocated to all participating funds. The Fund had no loans outstanding pursuant to this line of credit at March 31, 2006.
For the six months ended March 31, 2006 borrowings by the Fund under the Agreement were as follows:
Weighted | Month of |
|
|
Average | Average | Maximum | Maximum |
Daily | Interest | Amount | Amount |
Balance | Rate | Borrowed | Borrowed |
$163,431 | 4.56% | $6,696,485 | November 2005 |
Note E -- Affiliated Companies
An affiliated company is a company in which the Fund has a direct or indirect ownership of, control of, or voting power over 5 percent or more of the outstanding voting shares. Affiliated companies of the Fund are as follows:
Affiliates | Cost | Value |
Empresas ESM, SA de CV | $350,000 | $1 |
GNet Defta Development Holdings LLC | 400,000 | 400,000 |
SEAF Central & Eastern European Growth Fund LLC | 643,811 | 635,216 |
TOTALS | $1,393,811 | $1,035,217 |
Note F -- Other
In connection with certain venture capital investments, the Fund is committed to future capital calls, which will increase the Fund's investment in these securities. The aggregate amount of the future capital commitments totals $2,251,036 at March 31, 2006.
Financial Highlights
|
| Periods Ended |
|
| March 31, | September 30, | September 30, |
Class A Shares | 2006 (z) | 2005 | 2004 (z) |
Net asset value, beginning | $20.29 | $16.60 | $14.55 |
Income from investment operations |
|
|
|
Net investment income (loss) | .05 | .21 | .10 |
Net realized and unrealized gain (loss) | 2.78 | 3.59 | 2.12 |
Total from investment operations | 2.83 | 3.80 | 2.22 |
Distributions from |
|
|
|
Net investment income | (.17) | (.11) | (.17) |
Total distributions | (.17) | (.11) | (.17) |
Total increase (decrease) in net asset value | 2.66 | 3.69 | 2.05 |
Net asset value, ending | $22.95 | $20.29 | $16.60 |
|
|
|
|
Total return* | 14.01% | 22.95% | 15.30% |
Ratios to average net assets: A |
|
|
|
Net investment income (loss) | .48% (a) | 1.23% | .60% |
Total expenses | 1.79% (a) | 1.86% | 1.97% |
Expenses before offsets | 1.78% (a) | 1.86% | 1.97% |
Net expenses | 1.77% (a) | 1.85% | 1.96% |
Portfolio turnover | 53% | 49% | 72% |
Net assets, ending (in thousands) | $355,691 | $297,151 | $213,524 |
|
|
|
|
|
|
|
|
|
| Years Ended |
|
| September 30, | September 30, | September 30, |
Class A Shares | 2003 | 2002 | 2001 |
Net asset value, beginning | $11.99 | $13.65 | $21.77 |
Income from investment operations |
|
|
|
Net investment income (loss) | .09 | .01 | .01 |
Net realized and unrealized gain (loss) | 2.53 | (1.59) | (6.75) |
Total from investment operations | 2.62 | (1.58) | (6.74) |
Distributions from |
|
|
|
Net investment income | (.06) | -- | -- |
Net realized gains | -- | (.08) | (1.38) |
Total distributions | (.06) | (.08) | (1.38) |
Total increase (decrease) in net asset value | 2.56 | (1.66) | (8.12) |
Net asset value, ending | $14.55 | $11.99 | $13.65 |
|
|
|
|
Total return* | 21.93% | (11.69%) | (32.93%) |
Ratios to average net assets: A |
|
|
|
Net investment income (loss) | .72% | .06% | .07% |
Total expenses | 2.07% | 2.02% | 1.85% |
Expenses before offsets | 2.05% | 2.00% | 1.85% |
Net expenses | 2.05% | 1.99% | 1.83% |
Portfolio turnover | 71% | 106% | 93% |
Net assets, ending (in thousands) | $162,699 | $129,887 | $152,278 |
|
|
|
|
Financial Highlights |
|
|
|
|
|
|
|
|
| Periods Ended |
|
| March 31, | September 30, | September 30, |
Class B Shares | 2006 (z) | 2005 | 2004 (z) |
Net asset value, beginning | $18.61 | $15.30 | $13.57 |
Income from investment operations |
|
|
|
Net investment income (loss) | (.05) | 0.15 | (.08) |
Net realized and unrealized gain (loss) | 2.55 | 3.16 | 1.97 |
Total from investment operations | 2.50 | 3.31 | 1.89 |
Distributions from: |
|
|
|
Net investment income | ** | -- | (.16) |
Total distributions | ** | -- | (.16) |
Total increase (decrease) in net asset value | 2.50 | 3.31 | 1.73 |
Net asset value, ending | $21.11 | $18.61 | $15.30 |
|
|
|
|
Total return* | 13.46% | 21.63% | 13.95% |
Ratios to average net assets: A |
|
|
|
Net investment income (loss) | (.54%) (a) | .20% | (.54%) |
Total expenses | 2.79% (a) | 2.92% | 3.14% |
Expenses before offsets | 2.78% (a) | 2.92% | 3.14% |
Net expenses | 2.77% (a) | 2.91% | 3.13% |
Portfolio turnover | 53% | 49% | 72% |
Net assets, ending (in thousands) | $16,563 | $14,232 | $8,934 |
|
|
|
|
|
|
|
|
|
| Years Ended |
|
| September 30, | September 30, | September 30, |
Class B Shares | 2003 | 2002 | 2001 |
Net asset value, beginning | $11.33 | $13.09 | $21.20 |
Income from investment operations |
|
|
|
Net investment income (loss) | (.08) | (.16) | (.18) |
Net realized and unrealized gain (loss) | 2.38 | (1.52) | (6.55) |
Total from investment operations | 2.30 | (1.68) | (6.73) |
Distributions from: |
|
|
|
Net investment income | (.06) | -- | -- |
Net realized gains | -- | (.08) | (1.38) |
Total distributions | (.06) | (.08) | (1.38) |
Total increase (decrease) in net asset value | 2.24 | (1.76) | (8.11) |
Net asset value, ending | $13.57 | $11.33 | $13.09 |
|
|
|
|
Total return* | 20.34% | (12.96%) | (33.82%) |
Ratios to average net assets: A |
|
|
|
Net investment income (loss) | (.64%) | (1.22%) | (1.13%) |
Total expenses | 3.44% | 3.33% | 3.08% |
Expenses before offsets | 3.42% | 3.31% | 3.08% |
Net expenses | 3.41% | 3.31% | 3.06% |
Portfolio turnover | 71% | 106% | 93% |
Net assets, ending (in thousands) | $6,176 | $4,424 | $4,542 |
|
|
|
|
Financial Highlights |
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|
|
|
|
|
|
|
| Periods Ended |
|
| March 31, | September 30, | September 30, |
Class C Shares | 2006 (z) | 2005 | 2004 (z) |
Net asset value, beginning | $18.18 | $14.91 | $13.18 |
Income from investment operations |
|
|
|
Net investment income (loss) | (.03) | .15 | (.04) |
Net realized and unrealized gain (loss) | 2.49 | 3.12 | 1.92 |
Total from investment operations | 2.46 | 3.27 | 1.88 |
Distributions from: |
|
|
|
Net investment income | (.03) | -- | (.15) |
Total distributions | (.03) | -- | (.15) |
Total increase (decrease) in net asset value | 2.43 | 3.27 | 1.73 |
Net asset value, ending | $20.61 | $18.18 | $14.91 |
|
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|
|
Total return* | 13.52% | 21.93% | 14.33% |
Ratios to average net assets: A |
|
|
|
Net investment income (loss) | (.33%) (a) | .38% | (.25%) |
Total expenses | 2.62% (a) | 2.75% | 2.85% |
Expenses before offsets | 2.62% (a) | 2.75% | 2.85% |
Net expenses | 2.60% (a) | 2.74% | 2.84% |
Portfolio turnover | 53% | 49% | 72% |
Net assets, ending (in thousands) | $29,308 | $22,856 | $14,533 |
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|
|
| Years Ended |
|
| September 30, | September 30, | September 30, |
Class C Shares | 2003 | 2002 | 2001 |
Net asset value, beginning | $10.97 | $12.64 | $20.46 |
Income from investment operations |
|
|
|
Net investment income (loss) | (.03) | (.12) | (.14) |
Net realized and unrealized gain (loss) | 2.30 | (1.47) | (6.30) |
Total from investment operations | 2.27 | (1.59) | (6.44) |
Distributions from |
|
|
|
Net investment income | (.06) | -- | -- |
Net realized gains | -- | (.08) | (1.38) |
Total distributions | (.06) | (.08) | (1.38) |
Total increase (decrease) in net asset value | 2.21 | (1.67) | (7.82) |
Net asset value, ending | $13.18 | $10.97 | $12.64 |
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|
|
|
Total return* | 20.72% | (12.71%) | (33.62%) |
Ratios to average net assets: A |
|
|
|
Net investment income (loss) | (.27%) | (.95%) | (.89%) |
Total expenses | 3.09% | 3.05% | 2.81% |
Expenses before offsets | 3.07% | 3.04% | 2.81% |
Net expenses | 3.07% | 3.03% | 2.79% |
Portfolio turnover | 71% | 106% | 93% |
Net assets, ending (in thousands) | $9,764 | $7,021 | $7,434 |
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|
Financial Highlights |
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|
|
|
|
| Periods Ended |
|
| March 31, | September 30, | September 30, |
Class I Shares | 2006 (z) | 2005 | 2004 (z) |
Net asset value, beginning | $21.32 | $17.45 | $15.17 |
Income from investment operations |
|
|
|
Net investment income | .13 | .27 | .27 |
Net realized and unrealized gain (loss) | 2.91 | 3.88 | 2.19 |
Total from investment operations | 3.04 | 4.15 | 2.46 |
Distributions from: |
|
|
|
Net investment income | (.25) | (.28) | (.18) |
Total distributions | (.25) | (.28) | (.18) |
Total increase (decrease) in net asset value | 2.79 | 3.87 | 2.28 |
Net asset value, ending | $24.11 | $21.32 | $17.45 |
|
|
|
|
Total return* | 14.37% | 23.92% | 16.25% |
Ratios to average net assets: A |
|
|
|
Net investment income (loss) | 1.16% (a) | 2.04% | 1.60% |
Total expenses | 1.11% (a) | 1.17% | 1.23% |
Expenses before offsets | 1.11% (a) | 1.11% | 1.11% |
Net expenses | 1.09% (a) | 1.10% | 1.10% |
Portfolio turnover | 53% | 49% | 72% |
Net assets, ending (in thousands) | $110,995 | $89,974 | $48,420 |
|
|
|
|
|
|
|
|
|
| Years Ended |
|
| September 30, | September 30, | September 30, |
Class I Shares | 2003 | 2002 | 2001 |
Net asset value, beginning | $12.38 | $13.97 | $22.03 |
Income from investment operations |
|
|
|
Net investment income | .22 | .16 | .18 |
Net realized and unrealized gain (loss) | 2.63 | (1.67) | (6.86) |
Total from investment operations | 2.85 | (1.51) | (6.68) |
Distributions from: |
|
|
|
Net investment income | (.06) | -- | -- |
Net realized gains | -- | (.08) | (1.38) |
Total distributions | (.06) | (.08) | (1.38) |
Total increase (decrease) in net asset value | 2.79 | (1.59) | (8.06) |
Net asset value, ending | $15.17 | $12.38 | $13.97 |
|
|
|
|
Total return* | 23.12% | (10.93%) | (32.25%) |
Ratios to average net assets: A |
|
|
|
Net investment income (loss) | 1.65% | 1.05% | 1.09% |
Total expenses | 1.39% | 1.27% | 1.19% |
Expenses before offsets | 1.09% | 1.06% | 1.07% |
Net expenses | 1.09% | 1.05% | 1.05% |
Portfolio turnover | 71% | 106% | 93% |
Net assets, ending (in thousands) | $18,026 | $5,943 | $22,085 |
A Total expenses do not reflect amounts reimbursed and/or waived by the Advisor or reductions from expense offset arrangements. Expenses before offsets reflect expenses after reimbursement and/or waiver by the Advisor but prior to reductions from expense offset arrangements. Net expenses are net of all reductions and represent the net expenses paid by the Fund.
(a) Annualized.
(z) Per share figures are calculated using the Average Share Method.
* Total return is not annualized for periods less than one year and does not reflect deduction of any front-end or deferred sales charge.
** Distribution is less than $0.01 per share.
See notes to financial statements.
Explanation of Financial Tables
Schedule of Investments
The Schedule of Investments is a snapshot of all securities held in the fund at their market value, on the last day of the reporting period. Securities are listed by asset type (e.g., common stock, corporate bonds, U.S. government obligations) or, for International Funds, by country, and may be further broken down into sub-groups and by industry classification.
Statement of Assets and Liabilities
The Statement of Assets and Liabilities is often referred to as the fund's balance sheet. It lists the value of what the fund owns, is due and owes on the last day of the reporting period. The fund's assets include the market value of securities owned, cash, receivables for securities sold and shareholder subscriptions, and receivables for dividends and interest payments that have been earned, but not yet received. The fund's liabilities include payables for securities purchased and shareholder redemptions, and expenses owed but not yet paid. The statement also reports the fund's net asset value (NAV) per share on the last day of the reporting period. The NAV is calculated by dividing the fund's net assets (assets minus liabilities) by the number of shares outstanding. This statement is accompanied by a Schedule of Investments. Alternatively, if certain conditions are met, a Statement of Net Assets may be presented in lieu of this statement and the Schedule of Investments.
Statement of Net Assets
The Statement of Net Assets provides a detailed list of the fund's holdings, including each security's market value on the last day of the reporting period. The Statement of Net Assets includes a Schedule of Investments. Other assets are added and other liabilities subtracted from the investments total to calculate the fund's net assets. Finally, net assets are divided by the outstanding shares of the fund to arrive at its share price, or Net Asset Value (NAV) per share.
At the end of the Statement of Net Assets is a table displaying the composition of the fund's net assets. Paid in Capital is the money invested by shareholders and represents the bulk of net assets. Undistributed Net Investment Income and Accumulated Net Realized Gains usually approximate the amounts the fund had available to distribute to shareholders as of the statement date. Accumulated Realized Losses will appear as negative balances. Unrealized Appreciation (Depreciation) is the difference between the market value of the fund's investments and their cost, and reflects the gains (losses) that would be realized if the fund were to sell all of its investments at their statement-date values.
Statement of Operations
The Statement of Operations summarizes the fund's investment income earned and expenses incurred in operating the fund. Investment income includes dividends earned from stocks and interest earned from interest-bearing securities in the fund. Expenses incurred in operating the fund include the advisory fee paid to the investment advisor, administrative services fees, distribution plan expenses (if applicable), transfer agent fees, shareholder servicing expenses, custodial, legal, and audit fees, and the printing and postage expenses related to shareholder reports. Expense offsets (fees paid indirectly) are also shown. Credits earned from offset arrangements are used to reduce the fund's expenses. This statement also shows net gains (losses) realized on the sale of investments and the increase or decrease in the unrealized appreciation (depreciation) on investments held during the period.
Statement of Changes in Net Assets
The Statement of Changes in Net Assets shows how the fund's total net assets changed during the two most recent reporting periods. Changes in the fund's net assets are attributable to investment operations, distributions and capital share transactions.
The Operations section of the report summarizes information detailed in the Statement of Operations. The Distribution section shows the dividend and capital gain distributions made to shareholders. The amounts shown as distributions in this section may not match the net investment income and realized gains amounts shown in the Operations section because distributions are determined on a tax basis and certain investments or transactions may be treated differently for financial statement and tax purposes. The Capital Share Transactions section shows the amount shareholders invested in the fund, either by purchasing shares or by reinvesting distributions, and the amounts redeemed. The corresponding numbers of shares issued, reinvested and redeemed are shown at the end of the report.
Financial Highlights
The Financial Highlights table provides a per-share breakdown per class of the components that affect the fund's net asset value for current and past reporting periods. The table provides total return, total distributions, expense ratios, portfolio turnover and net assets for the applicable period. Total return is a measure of a fund's performance that encompasses all elements of return: dividends, capital gain distributions and changes in net asset value. Total return is the change in value of an investment over a given period, assuming reinvestment of any dividends and capital gain distributions, expressed as a percentage of the initial investment. Total distributions include distributions from net investment income and net realized gains. Long-term gains are earned on securities held in the fund more than one year. Short-term gains, on the sale of securities held less than one year, are treated as ordinary dividend income for tax purposes. The expense ratio is a fund's cost of doing business, expressed as a percentage of net assets. These expenses directly reduce returns to shareholders. Portfolio turnover measures the trading activity in a fund's investment portfolio -- how often securities are bought and sold by a fund. Portfolio turnover is affected by market conditions, changes in the size of the fund, the nature of the fund's investments and the investment style of the portfolio manager.
Proxy Voting
The Proxy Voting Guidelines of the Calvert Funds that the Fund uses to determine how to vote proxies relating to portfolio securities are provided as an Appendix to the Fund's Statement of Additional Information. The Statement of Additional Information can be obtained free of charge by calling the Fund at 1-800-368-2745, by visiting the Calvert website at www.calvert.com; or by visiting the SEC's website at www.sec.gov.
Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund's website at www.calvert.com and on the SEC's website at www.sec.gov.
Availability of Quarterly Portfolio Holdings
The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Fund's Form N-Q is available on the SEC's website at www.sec.gov. The Fund's Form N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC; information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
Basis for Board's Approval of Investment Advisory Contracts
Annual Renewal of Investment Advisory and Subadvisory Agreements
The Board of Directors, and by a separate vote, the disinterested Directors, approved the continuance of the Investment Advisory Agreement between the Fund and the Advisor and the Investment Subadvisory Agreement with Grantham, Mayo, Van Otterloo, LLC, (GMO or Subadvisor) with respect to the Fund on December 6, 2005.
In evaluating the Investment Advisory Agreement, the Board of Directors considered a variety of information relating to the Fund and the Advisor. The disinterested Directors reviewed a report prepared by the Advisor regarding various services provided to the Fund by the Advisor and its affiliates. Such report included, among other things, information regarding the Advisor's personnel and the Advisor's revenue and cost of providing services to the Fund, and a separate report prepared by an independent third party, which provided a statistical analysis comparing the Fund's investment performance, expenses, and fees to comparable mutual funds. The disinterested Directors were separately represented by independent legal counsel with respect to their consideration of the reapproval of the Investment Advisory Agreement and the Investment Subadvisory Agreement. Prior to voting, the disinterested Directors reviewed the proposed continuance of the Investment Advisory Agreement and Investment Subadvisory Agreement with management and also met in private sessions with their counsel at which no representatives of management were present.
In the course of their deliberations regarding the Investment Advisory Agreement, the Directors considered the following factors, among other things: the nature, extent and quality of the services provided by the Advisor including the personnel providing such services; the Advisor's financial condition; the level and method of computing the Fund's advisory fee; comparative performance, fee and expense information for the Fund; the profitability of the Calvert Group of Funds to the Advisor; the allocation of the Fund's brokerage, including the Advisor's process for monitoring "best execution"; the direct and indirect benefits, if any, derived by the Advisor from the relationship with the Fund; the effect of the Fund's growth and size on the Fund's performance and expenses; the affiliated distributor's process for monitoring sales load breakpoints; the Advisor's compliance programs and policies; the Advisor's performance of substantially similar duties for other funds; and any possible conflicts of interest .
In considering the nature, extent and quality of the services provided by the Advisor under the Investment Advisory Agreement, the Board of Directors reviewed information provided by the Advisor relating to its operations and personnel, including, among other things, biographical information on the Advisor's supervisory and professional staff and descriptions of its organizational and management structure. The Directors also took into account similar information provided periodically throughout the previous year by the Advisor as well as the Directors' familiarity with the Advisor's senior management through Board of Directors' meetings, discussions and other reports. The Advisor's administrative capabilities, including its ability to supervise the other service providers for the Fund, were also considered. The Board of Directors discussed the Advisor's effectiveness in monitoring the performance of the Subadvisor and its timeliness in responding to performance issues. The Directors concluded that they we re satisfied with the nature, extent and quality of services provided to the Fund under the Investment Advisory Agreement.
In considering the Fund's performance, the Board of Directors noted that the Board reviews on a quarterly basis detailed information about the Fund's performance results, portfolio composition and investment strategies. The Directors also reviewed various comparative data provided to them in connection with their consideration of the renewal of the Investment Advisory Agreement, including, among other information, a comparison of the Fund's total return with its Lipper index and with that of other mutual funds deemed to be in its peer group by the independent third party in its report. This comparison indicated that for the one-, three- and five-year annualized periods ended June 30, 2005, the Fund underperformed its Lipper index and that the Fund's performance was below the median of its peer group. The Directors considered the Advisor's discussion of its plans to address the Fund's performance. Based upon their review, the Directors concluded that appropriate action is being taken to address the Fund's performance and retained confidence in the Advisor's overall capabilities to manage the Fund.
In considering the Fund's fees and expenses, the Board of Directors compared the Fund's fees and total expense ratios with various comparative data for the funds in its peer group. Among other things, the data indicated that the Fund's advisory fee was below the median of its peer group and total expenses were above the median of its peer group. The Board of Directors noted the Advisor's discussion of the Fund's expenses and certain factors that bear upon the level of such expenses and the Advisor's anticipated efforts to reduce the Fund's expenses. Based upon their review, the Board of Directors determined that the advisory fee was reasonable in view of the quality of services and the other factors considered.
In reviewing the overall profitability of the advisory fee to the Fund's Advisor, the Board also considered the fact that affiliates provide shareholder servicing and administrative services to the Fund for which they receive compensation. The information considered by the Board included Calvert's operating profit margin information both before and after tax expenses with respect to the services that the Advisor and its affiliates provide to the Calvert Group of Funds complex. The Directors reviewed the profitability of the Advisor's relationship with the Fund in terms of the total amount of annual advisory fees it receives with respect to the Fund and whether the Advisor had the financial wherewithal to continue to provide a high level of services to the Fund. The Directors also considered that the Advisor derives reputational and other indirect benefits. The Directors also noted that the Advisor pays the subadvisory fees out of the advisory fees the Advisor receives from the Fund. Based upon their revie w, the Directors concluded that the Advisor's level of profitability from its relationship with the Fund was reasonable.
The Board considered that the advisory fee schedule for the Fund contains breakpoints that reduce the fee rate on assets above specified levels noting that the Fund currently reflects such economies of scale. The Board also received information showing the effective fees under the Advisory Agreement as a percentage of assets at different asset levels and considered the additional economies of scale that might be realized if the assets of the Fund grow. The Directors also noted that if a Fund's assets increase over time, the Fund may realize other economies of scale if assets increase proportionally more than certain other expenses.
In reapproving the Investment Advisory Agreement, the Board of Directors, including the disinterested Directors, did not identify any single factor as controlling, and each Director attributed different weights to various factors.
In evaluating the Investment Subadvisory Agreement, the disinterested Directors reviewed information provided by the Subadvisor relating to its operations, personnel, investment philosophy, strategies and techniques. Among other things, the Subadvisor provided biographical information on portfolio management and other professional staff, performance information for the Subadvisor, and descriptions of the Subadvisor's investment philosophies, strategies and techniques, organizational and management structures and brokerage policies and practices.
The Board of Directors reapproved the Investment Subadvisory Agreement between the Subadvisor and the Advisor based on a number of factors relating to the Subadvisor's ability to perform under its Subadvisory Agreement. In the course of their deliberations, the Directors evaluated, among other things: the nature, extent and the quality of the services to be rendered by the Subadvisor; the Subadvisor's management style and long-term performance record; the Fund's performance record and the Subadvisor's performance in employing its investment strategies; the Subadvisor's current level of staffing and its overall resources; the qualifications and experience of the Subadvisor's personnel; the Subadvisor's financial condition with respect to its ability to perform the services required under the Investment Subadvisory Agreement; the Subadvisor's compliance systems including those related to personal investing; and any disciplinary history. Based upon their review, the Directors concluded that they were satisfi ed with the nature, extent and quality of services provided to the Fund under the Investment Subadvisory Agreement.
As noted above, the Board of Directors considered the Fund's performance during the one-, three- and five-year annualized periods ended June 30, 2005 as compared to the Fund's peer group and noted that the Board reviews on a quarterly basis detailed information about the Fund's performance results, portfolio composition and investment strategies. The Directors noted the Advisor's expertise and resources in monitoring the performance, investment style and risk adjusted performance of the Subadvisor, as well as the plans to address the Fund's performance.
In considering the cost of services to be provided by the Subadvisor and the profitability to the Subadvisor of its relationship with the Fund, the Directors noted that the fees under the Investment Subadvisory Agreement are paid by the Advisor out of the advisory fees that the Advisor receives under the Investment Advisory Agreement. The Directors also relied on the ability of the Advisor to negotiate the Investment Subadvisory Agreement and the fees thereunder at arm's length. For each of the above reasons, the cost of services to be provided by the Subadvisor and the profitability to the Subadvisor of its relationship with the Fund were not material factors in the Directors' deliberations. For similar reasons, the Directors did not consider the potential economies of scale in the Subadvisor's management of the Fund to be a material factor in their consideration at this time, although it was noted that the subadvisory fee schedule for the Fund contains breakpoints that reduce the fee rate on assets abov e specified levels.
In reapproving the Investment Subadvisory Agreement, the Board of Directors, including the disinterested Directors, did not identify any single factor as controlling, and each Director attributed different weights to various factors.
Conclusions
The Directors reached the following conclusions regarding the Investment Advisory Agreement and the Subadvisory Agreement, among others: (a) the Advisor has demonstrated that it possesses the capability and resources to perform the duties required of it under the Investment Advisory Agreement; (b) the Subadvisor is qualified to manage the Fund's assets in accordance with its investment objectives and policies; (c) the Advisor and Subadvisor maintain appropriate compliance programs; (d) the Subadvisor is likely to execute its investment strategy consistently over time; (e) appropriate action is being taken to address the Fund's performance; and (f) the Fund's advisory expenses are reasonable in relation to those of similar funds and to the services to be provided by the Advisor and the Subadvisor. Based on their conclusions, the Directors determined that reapproval of the Investment Advisory Agreement and the Investment Subadvisory Agreement would be in the interests of the Fund and its shareholders.
Initial Approval of New Subadvisory Agreement
At a meeting held on March 7, 2006, the Board of Directors, and by a separate vote, the disinterested Directors, initially approved the Investment Subadvisory Agreement with Acadian Asset Management, Inc., ("Subadvisor" or "Acadian") with respect to the Fund.
In evaluating the Investment Subadvisory Agreement, the Directors reviewed information provided by the Advisor and the Subadvisor relating to the Subadvisor's operations, personnel, investment philosophy, strategies and techniques. Among other things, the Advisor and the Subadvisor provided biographical information on portfolio management and other professional staff, performance information for the Subadvisor, and descriptions of the Subadvisor's investment philosophies, strategies and techniques, organizational and management structures and brokerage policies and practices. The disinterested Directors were separately represented by independent legal counsel with respect to their consideration of the Investment Subadvisory Agreement.
The Board of Directors approved the Investment Subadvisory Agreement between the Subadvisor and the Advisor based on a number of factors relating to the Subadvisor's ability to perform under the Investment Subadvisory Agreement. In the course of their deliberations, the Directors evaluated, among other things: the nature, extent and the quality of the services to be rendered by the Subadvisor; the Subadvisor's management style and long-term performance record in employing its investment strategies; the Subadvisor's current level of staffing and its overall resources; the qualifications and experience of the Subadvisor's personnel; the Subadvisor's financial condition with respect to its ability to perform the services required under the Investment Subadvisory Agreement; the Subadvisor's compliance systems including those related to personal investing; and any disciplinary history. In addition, the Directors considered certain information received in connection with, and their deliberations with respect to their December 2005 renewal of the Investment Subadvisory Agreement with GMO and the Investment Advisory Agreement. Based upon their review, the Directors concluded that they were satisfied with the nature, extent and quality of services to be provided to the Fund under the proposed Investment Subadvisory Agreement with Acadian.
In considering the Subadvisor's comparable performance with similarly managed funds and non-mutual fund accounts, the Board noted the Subadvisor's strong long-term performance record with respect to its investment strategy that it would utilize with respect to the Fund. Among other performance information presented to the Directors, the Board noted that Acadian's non-US All Cap strategy composite returns for the one-, three- and five-year periods ended December 31, 2005 ranked in the top quartile of Lipper's International Multi-Cap Core category and that the composite's net return outperformed the Morgan Stanley Capital International Europe Australasia and Far East Index for the same periods.
In considering the cost of services to be provided by the Subadvisor and the profitability to the Subadvisor of its relationship with the Fund, the Directors relied on the ability of the Advisor to negotiate the Investment Subadvisory Agreement and the fees thereunder at arm's length. The Directors also took into account that the subadvisory fee under the Investment Subadvisory Agreement with Acadian would be lower than the subadvisory fee under the Investment Subadvisory Agreement with GMO at asset levels above $250 million. The Directors also noted that the fees under the Investment Subadvisory Agreement are paid by the Advisor out of the advisory fees that the Advisor receives under the Investment Advisory Agreement and that the advisory fees paid by the Fund would be subject to a voluntary waiver by the Advisor corresponding to the decrease in the subadvisory fee under the Investment Subadvisory Agreement at asset levels above $250 million. Based upon their review, the Board of Directors determined th at the subadvisory fee was reasonable. For each of the above reasons, the profitability to the Subadvisor of its relationship with the Fund was not a material factor in the Directors' deliberations. For similar reasons, the Directors did not consider the potential economies of scale in the Subadvisor's management of the Fund to be a material factor in their consideration at this time, although the Directors noted that the subadvisory fee under the new Investment Subadvisory Agreement includes breakpoints that would reduce the subadvisory fee above certain specified asset levels and that the subadvisory fee at asset levels over $250 million would be lower than under the current Investment Subadvisory Agreement.
In approving the Investment Subadvisory Agreement, the Board of Directors, including the disinterested Directors, did not identify any single factor as controlling, and each Director attributed different weight to various factors.
The Board of Directors reached the following conclusions regarding the Subadvisory Agreement, among others: (a) the Subadvisor is qualified to manage the Fund's assets in accordance with its investment objectives and policies; (b) the Subadvisor maintains an appropriate compliance program; (c) the Subadvisor's investment strategies are appropriate for pursuing the investment objectives of the Fund; and (d) the subadvisory fees to be paid to the Subadvisor are reasonable in relation to those of similar funds and to the services to be provided by the Subadvisor. Based on their conclusions, the Board of Directors determined that approval of the Investment Subadvisory Agreement would be in the interests of the Fund and its shareholders.
A special shareholder meeting was held on December 2, 2005 by the Calvert World Values Fund, Inc. for the purpose of electing a Board of Trustees/Directors. The voting results were as follows:
Name of Trustee/Director | For | Withhold | Abstain | Broker Non-Votes |
Rebecca Adamson | 17,459,967.086 | 49,814.768 | 45,425.000 | 0.000 |
Richard L. Baird, Jr. | 17,449,355.168 | 60,426.686 | 45,425.000 | 0.000 |
Frederick A. Davie, Jr. | 17,447,416.121 | 62,365.733 | 45,425.000 | 0.000 |
John Guffey, Jr. | 17,434,853.804 | 74,928.050 | 45,425.000 | 0.000 |
Miles Douglas Harper, III | 17,445,706.542 | 64,075.312 | 45,425.000 | 0.000 |
Joy V. Jones | 17,449,368.957 | 60,412.897 | 45,425.000 | 0.000 |
Terrence J. Mollner, Ed. D. | 17,453,761.909 | 56,019.945 | 45,425.000 | 0.000 |
Sydney Amara Morris | 17,455,539.879 | 54,241.975 | 45,425.000 | 0.000 |
Rustum Roy | 17,453,215.802 | 56,566.052 | 45,425.000 | 0.000 |
Tessa Tennant | 17,463,013.493 | 46,768.361 | 45,425.000 | 0.000 |
Barbara J. Krumsiek | 17,455,153.259 | 54,628.595 | 45,425.000 | 0.000 |
D. Wayne Silby, Esq. | 17,443,789.792 | 65,992.062 | 45,425.000 | 0.000 |
Calvert World Values International Equity Fund
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Registered, Certified
or Overnight Mail
Calvert Group
c/o BFDS
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's Family of Funds
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Calvert
Investments that make a difference
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March 31, 2006
Semi-Annual Report
Calvert Capital
Accumulation Fund
A UNIFI Company
Calvert
Investments that make a difference
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Table of Contents
President's Letter
1
Social Update
4
Portfolio Management Discussion
6
Shareholder Expense Example
10
Statement of Net Assets
12
Statement of Operations
16
Statements of Changes in Net Assets
17
Notes to Financial Statements
18
Financial Highlights
22
Explanation of Financial Tables
26
Proxy Voting and Availability of Quarterly Portfolio Holdings
28
Basis for Board's Approval of Investment Advisory Contract
28
=====================================================
Dear Shareholders:
The six months ended March 31, 2006 were strong ones for the U.S. equity markets and the economy, despite challenges from higher energy prices, the war in Iraq, rising interest rates and the aftermath of rebuilding from the Gulf coast hurricanes. Domestic stocks across all capitalization ranges (small, mid-sized, and large) posted solid six-month advances, with even stronger returns for international stocks, as measured by the MSCI EAFE Index.1 In reaction to rising interest rates, bond prices overall declined slightly, with the benchmark Lehman U.S. Credit Index returning -0.68%.
Ben Bernanke took over the reins at the Federal Reserve as Chairman in February 2006, in what appears to be a smooth transition from the Greenspan era. With the Fed funds rate now at 4.75%, we appear to be in a period of healthy economic growth. Despite warning signals, we continue to see moderate, contained inflation.
Calvert Initiatives
At Calvert, we remain committed to making a difference through our specialized investment management approach and our leadership on issues of importance to the communities we serve.
Over the past six months, we've continued to advance our compliance and regulatory oversight; and expanded our public commitment in areas such as board diversity and the empowerment of women in business through our Calvert Women's Principles.
In addition, we've added a new position to bolster our leadership efforts in the areas of social research, shareholder advocacy, and public outreach. On April 18, Bennett Freeman joined Calvert as Senior Vice President, Social Research and Policy. Formerly head of Global Corporate Responsibility practice at Burson-Marsteller, and Deputy Assistant Secretary of State for Democracy, Human Rights and Labor, Mr. Freeman will manage the social analysis functions and lead the development of Calvert's positions on social issues and actively articulate those positions in a variety of public forums. In addition, he will identify emerging trends and opportunities in social research and shareholder advocacy.
Calvert RatingsTM
In January, we published the Calvert Ratings, a proprietary assessment of the social, environmental, and governance performance of the 100 largest U.S. companies (ranked by market capitalization). We developed the Ratings to provide greater transparency in our methodology for evaluating the corporate performance of companies. The Ratings indicate a company's performance in five separate issue areas including the environment, workplace, business practices, human rights and community relations. The Ratings and their methodology are posted under "Introducing Calvert Ratings" on calvert.com.
A Long-Term, Disciplined Outlook
We believe our disciplined investment process can lead to lower risk and competitive long-term performance. Calvert encourages you to work with a financial professional, who can provide important insights into investment markets, as well as the guidance to create and maintain a thoughtful investment strategy.
As Calvert celebrates our 30th anniversary year, I'd like to thank you for your continued confidence in our investment products, and we look forward to continuing to serve you in the years ahead.
Sincerely,
Barbara J. Krumsiek
President and CEO
Calvert Group, Ltd.
April 2006
1. For the six months ended March 31, 2006, larger-company stocks (S&P 500 Index) were up 6.38%; smaller-company stocks (Russell 2000® Index) advanced 15.23%; and mid-cap stocks (Russell Midcap® Index) gained 11.32%. International stocks gained 13.99% in US dollars, as measured by the MSCI EAFETM Index.
For more information on any Calvert fund, please contact your financial advisor or call Calvert at 800.368.2748 for a free prospectus. An investor should consider the investment objectives, risks, charges, and expenses of an investment carefully before investing. The prospectus contains this and other information. Read it carefully before you invest or send money.
Calvert mutual funds are underwritten and distributed by Calvert Distributors, Inc., member NASD, a subsidiary of Calvert Group, Ltd.
Social Update
from the Calvert Social Research Department
As a company, through the work of the Calvert Social Research Department, and through our unique investment programs, Calvert is a leader in socially responsible investment practices. This Social Update highlights key initiatives and involvement for the six-month reporting period ended March 31, 2006.
Calvert RatingsTM
January 2006 saw the launch of the Calvert Ratings, which evaluates the 100 largest U.S. companies in the areas of environment, workplace, business practices, human rights, and community relations to assign each one an overall corporate responsibility score. Companies are rated on a scale of 1 (substantially below Calvert standards) to 5 (superior). See how the Ratings work on our home page at www.calvert.com.
Calvert Creates Senior Position in Social Research and Policy
With more than 20 years' diplomatic, corporate, and consulting experience in issues that are at the heart of Calvert's social agenda, Bennett Freeman has been named the company's first Sr. Vice President for Social Research and Policy. Freeman manages Calvert's social analysis functions, develops and articulates the company's positions on social issues, and identifies emerging trends and opportunities in social research and shareholder advocacy.
Shareholder Activism
For the 2006 proxy season, Calvert has filed 16 shareholder resolutions and been able to withdraw half of them because companies have taken action to address our concerns. Among these resolutions, issues have included sustainability reporting, political-contributions disclosure, energy efficiency, predatory lending, and sustainable forestry practices.
Over the past several years, Calvert has engaged 35 companies on the subject of corporate board diversity via shareholder resolutions. To date, 28 of those companies--a full 80%--have either changed their charter language or added at least one woman or minority representative to their boards.
Community Investments
Many of our Funds participate in Calvert's community investing program, administered through the Calvert Social Investment Foundation. The program may allocate up to 1% to 3% of Fund assets at below-market rates to provide economic opportunity for struggling populations.1 One investment made by the Foundation during this reporting period was in the Federation of Appalachian Housing Enterprises (FAHE), and one borrower served by FAHE is Laurie Ramos. Ms. Ramos and her two young sons have been able to move from a dilapidated house in an unsafe neighborhood into an affordable, safe, completely refurbished three-bedroom townhouse. A second Calvert community investment effort was through the Foundation in Mi-Bospo, which provides microloans to women recovering from war in Bosnia and Herzegovina. The small businesses expanded or begun by these women help to revive and rebuild local economies.
Special Equities
Since 1992, Calvert's Special Equities Program has provided venture capital for young enterprises that offer market-based solutions to some of the most difficult social, environmental, and health problems facing our world. During this six-month reporting period, two particularly noteworthy Special Equities developments took place.
Mr. Don Ye, President and CEO of Tsinghua Venture Capital Management Company, received the 2005 Cleantech Pioneer Award for his own and his firm's efforts to introduce and promote the first venture capital investment in cleantech and environment industries in China. Special Equities supports Ye and his efforts through our investment in the China Environment Fund 2004 LP.2
In addition, Calvert has joined several prominent banks, foundations, and community-finance trade associations investing in SJF Ventures II, LP, a socially responsible venture capital effort that supports high-growth private companies engaged in cleantech, natural and premium consumer products, and technology-enabled business services.3 SJF affiliates also work closely with their portfolio companies to promote workforce development and sustainability.
1. As of March 31, 2006, Calvert Social Investment Foundation represented the following percentages of Fund net assets: Calvert Social Investment Fund (CSIF) Balanced, 0.84%; CSIF Bond, 0.27%; CSIF Equity, 0.52%; Calvert Capital Accumulation Fund, 0.47%; Calvert World Values Fund International Equity Fund , 0.72%; and Calvert New Vision Small Cap Fund, 0.45%. All holdings are subject to change without notice.
2. As of March 31, 2006, China Environment Fund 2004 LP represented the following percentages of Fund net assets: CSIF Equity Portfolio, 0.0048%; Calvert World Values International Equity Fund, 0.0122%. All holdings are subject to change without notice.
3. As of March 31, 2006, SJF Ventures II, LP represented the following percentage of Fund net assets: CSIF Equity Portfolio, 0.0039%. All holdings are subject to change without notice.
Portfolio Management Discussion
Michelle Clayman
Nathaniel Paull
of New Amsterdam Partners LLC
Performance
For the six-month reporting period ended March 31, 2006, Calvert Capital Accumulation Fund Class A shares (at NAV) returned 11.19%,* roughly in line with the Russell Mid-Cap® Growth Index, at 11.32%. Individual stock selection and both an overweight to the Materials and Processing sector and an underweight to Integrated Oils boosted performance.
Investment Climate
As 2005 came to a close, financial headlines were dominated by the Dow Jones Industrial Average's ending the year at a lower level than where it started the year (though its total return was 1.7% as a result of dividends) and the NASDAQ's return of just 2.1% for the year. But the S&P 500 Index posted a 4.9% total return for the year, the Russell 1000® Index of large companies was up 6.3%, and the Russell 2000® Index of small companies returned 4.6%. The first quarter of 2006 was also positive for U.S. equities, as the Russell 1000 Index returned 4.49%, mid-cap stocks (as measured by the Russell Mid Cap Index) gained more than 7%, and small-cap stocks (as measured by the Russell 2000 Index) returned almost 14%.
Real disposable income growth1, while strong, has not led to a rapid increase in the Bureau of Labor Statistics' Employment Cost Index. Productivity growth2, which has been a significant driver of gross domestic product (GDP) growth, suffered last quarter, though this may have been a statistical quirk. Energy prices have remained high but have neither increased nor been as volatile as in 2005. Housing data have been mixed in recent months, though this could be expected given that certain regions may have become overly speculative.
Portfolio Strategy
Our core strategy employs a valuation model to identify reasonably priced companies with better-than-average forecast growth and profitability. Using Calvert's Double DiligenceTM process, we seek attractive potential investments in well-managed firms by examining company fundamentals both financially and in terms of corporate responsibility.
During the reporting period, we sold three positions and purchased five. After Technology holding Scientific Atlanta announced it would be acquired by Cisco Systems, we sold our position in the company. Lincare Holdings, in Health Care, was sold due to an increasingly difficult regulatory environment for health-service firms. We sold consumer non-durables holding Alberto-Culver on concerns over the planned sale of its beauty-supplies business. Portfolio additions included Eagle Materials, a manufacturer of building materials. In the Technology sector, we added semiconductor maker Diodes. Rounding out the purchases, we added Advo, a direct-mail advertiser; Ansys, a producer of high-tech simulation software; and Davita, which operates kidney dialysis centers.
Boosting Fund performance through the period were securities selections in the Technology, Materials and Processing, and Producer Durables sectors. Distribution-services company Wesco International returned 100.8%, doubling its value through the reporting period. Reliance Steel & Aluminum returned 77.9% and Maverick Tube 76.6%. Producer Durables holding Graco was strong at 33.5%, as were four of our technology-related holdings: Ansys (36.6%), Itron (31.1%), Amphenol (29.5%), and Cognizant Technology Solutions (27.7%).
Fund performance was negatively affected by securities selection in the Health Care, Consumer Discretionary, and Financial Services sectors. Consumer Discretionary holdings Nautilus and Resources Connection were down at -31.5% and -15.9% respectively. Home builders Pulte Homes and KB Homes traded lower (-10.3% and -10.7% respectively) over concerns of a slowing housing market. Carbo Ceramics (-13.5%) in Other Energy fell as energy prices began to ease, and Consumer Discretionary holding USANA Health Sciences was down 12.5% .
On March 31, 2006, the Fund held 46 positions and had overweights to the Producer Durables and Consumer Discretionary sectors and underweights to Health Care, Technology, and Financial Services.
Outlook
We expect a soft landing for the housing "bubble," though this would require the inventory of unsold homes to moderate to six months or less. We expect to see productivity growth return, in turn helping ward off any inflation increases. Though we believe there may be one or two modest Fed-fund rate hikes ahead, the benign inflation outlook should alleviate the need for any significant tightening. On the other hand, with the unemployment rate down to 4.8%, pockets of labor scarcity may emerge, driving wages higher in some areas.
We expect the relative economic strength we saw in 2005 to continue into 2006. While fourth- quarter 2005 GDP growth was on the weak side, first-quarter 2006 GDP growth looks as if it will exceed 4%, based on our staff's analysis. This strong economic backdrop means we believe that companies are likely to report year-over-year profit growth in excess of 10%. There are factors, however, that could derail the market: global turmoil, disruptions in world energy supplies, a falling off of U.S. productivity, or a continued decline in the market price-to-earnings ratio (P/E). (P/E is the ratio of price divided by earnings. The higher the ratio, the more investors are paying and the more earnings growth they expect.)
We continue to be bullish on U.S. equities, expecting broad market returns to be in the high single digits in 2006. The S&P 500 Index's current P/E of 15 times forward earnings is down, having fallen over the last few years, and is now in what we regard as reasonable territory. In all, we believe the portfolio is well positioned given our outlook.
April 2006
1. Measured by the change in the Bureau of Economic Analysis Real Disposable Personal Income Index.
2. Measured by the change in the Bureau of Labor Statistics Non-farm Business Productivity Index.
As of March 31, 2006, the following companies represented the following percentages of Fund net assets: Scientific Atlanta
0.00%, Lincare Holdings 0.00%, Alberto-Culver 0.00%, Eagle Materials 1.02%, Diodes 0.64%, Advo 0.33%, Ansys 1.34%, Davita 1.89%, Wesco International 4.24%, Reliance Steel & Aluminum 3.65%, Maverick Tube 2.04%, Graco 3.10%, Itron 3.06%, Amphenol 3.16%, Cognizant Technology Solutions 4.40%, Nautilus 1.55%, Resources Connection 1.99%, Pulte Homes 3.25%, KB Homes 2.05%, Carbo Ceramics 2.25%, USANA Health Sciences 0.76%. All holdings are subject to change without notice.
Portfolio Statistics
March 31, 2006
Investment Performance
(total return at NAV)
| 6 Months | 12 Months |
| ended | ended |
| 3/31/06 | 3/31/06 |
Class A | 11.19% | 11.76% |
Class B | 10.71% | 10.81% |
Class C | 10.76% | 10.86% |
Class I | 11.76% | 12.80% |
Russell Mid-Cap Growth Index** | 11.32% | 22.68% |
Lipper Mid-Cap Growth Funds Avg.** | 12.64% | 23.66% |
|
|
|
Ten Largest Stock Holdings |
|
|
|
|
|
| % of Net Assets |
|
Cognizant Technology Solutions Corp. | 4.4% |
|
WESCO International, Inc. | 4.2% |
|
Reliance Steel & Aluminum Co. | 3.7% |
|
Superior Energy Services, Inc. | 3.4% |
|
Pulte Homes, Inc. | 3.2% |
|
Amphenol Corp. | 3.2% |
|
Graco, Inc. | 3.1% |
|
Itron, Inc. | 3.1% |
|
Strayer Education, Inc. | 2.9% |
|
Barr Pharmaceuticals, Inc. | 2.9% |
|
Total | 34.1% |
|
|
|
|
Economic Sectors % of total investments |
| |
|
|
|
Consumer Discretionary | 27.5% |
|
Consumer Staples | 2.3% |
|
Financial Services | 9.2% |
|
Government Agency Obligations | 0.7% |
|
Health Care | 11.5% |
|
Materials and Processing | 8.9% |
|
Other Energy | 9.3% |
|
Producer Durables | 18.0% |
|
Technology | 11.7% |
|
Utilities | 0.9% |
|
Total | 100% |
|
|
|
|
Asset Allocation |
|
|
Stocks | 98.8% |
|
Notes | 0.5% |
|
Cash or Cash Equivalents | 0.7% |
|
Total | 100% |
|
** Source: Lipper Analytical Services, Inc.
*Share return at NAV does not reflect deduction of the Fund's maximum front-end sales charge of 4.75%.
Investment performance does not reflect the deduction of any front-end or deferred sales charge.
Portfolio Statistics
March 31, 2006
Average Annual Total Returns
(with max. load)
| Class A Shares |
One year | 6.46% |
Five year | 1.43% |
Ten year | 6.26% |
|
|
| Class B Shares |
One year | 5.81% |
Five year | 1.31% |
Since inception | 1.97% |
(3/31/98) |
|
Portfolio Statistics
March 31, 2006
Average Annual Total Returns
(with max. load)
| Class C Shares |
One year | 9.86% |
Five year | 1.57% |
Ten year | 5.86% |
|
|
| Class I Shares* |
One year | 12.80% |
Five year | 0.45% |
Since inception | 3.75% |
(2/26/99) |
|
Performance Comparison
Comparison of change in value of $10,000 investment. (Source: Lipper Analytical Services, Inc.)
* Note Regarding Class I Shares Total Returns: There were times during the reporting period when there were no shareholders in Class I. For purposes of reporting Average Annual Total Return, Class A performance at NAV (i.e. does not reflect deduction of the Class A front-end sales charge) is used during these periods in which there were no shareholders in Class I. For purposes of this Average Annual Total Return, the Class A performance at NAV was used during the period January 18, 2002 through June 3, 2003.
Average annual total returns in the Portfolio Statistics and the Performance Comparison line graph are with maximum load deducted -- they assume reinvestment of dividends and reflect the deduction of the Fund's Class A maximum front-end sales charge of 4.75%, or deferred sales charge, as applicable. No sales charge has been applied to the index used for comparison. However, the Lipper average does reflect the deduction of the category's average front-end sales charge. The value of an investment in Class A & C shares is plotted in the line graph. The value of an investment in another class of shares would be different. The graph and table do not reflect the deduction of taxes that a shareholder would pay on the Fund's distributions or the redemption of Fund shares. Past performance is no guarantee of future results.
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges and redemption fees; and (2) ongoing costs, including management fees; distribution (12b-1) fees; and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
This Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (October 1, 2005 to March 31, 2006).
Actual Expenses
The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption fees. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Beginning | Ending Account | Expenses Paid |
| Account Value | Value | During Period* |
| 10/1/05 | 3/31/06 | 10/1/05 - 3/31/06 |
Class A |
|
|
|
Actual | $1,000.00 | $1,111.90 | $9.24 |
Hypothetical | $1,000.00 | $1,016.18 | $8.82 |
(5% return per year before expenses) |
|
|
|
Class B |
|
|
|
Actual | $1,000.00 | $1,107.60 | $13.67 |
Hypothetical | $1,000.00 | $1,011.96 | $13.05 |
(5% return per year before expenses) |
|
|
|
Class C |
|
|
|
Actual | $1,000.00 | $1,107.60 | $13.28 |
Hypothetical | $1,000.00 | $1,012.33 | $12.68 |
(5% return per year before expenses) |
|
|
|
Class I |
|
|
|
Actual | $1,000.00 | $1,117.60 | $4.54 |
Hypothetical | $1,000.00 | $1,020.64 | $4.33 |
(5% return per year before expenses) |
|
|
|
* Expenses are equal to the Fund's annualized expense ratio of 1.76%, 2.60%, 2.53% and 0.86% for Class A, Class B, Class C, and Class I respectively, multiplied by the average account value over the period, multiplied by 182/365.
Statement of Net Assets
March 31, 2006
Equity Securities - 99.0% |
| Shares | Value |
|
Advertising Agencies - 0.3% |
|
|
|
|
Advo, Inc. |
| 15,400 | $492,800 |
|
|
|
|
|
|
Building - Cement - 1.0% |
|
|
|
|
Eagle Materials, Inc. |
| 23,600 | 1,504,736 |
|
|
|
|
|
|
Chemicals - 2.2% |
|
|
|
|
Praxair, Inc. |
| 59,700 | 3,292,455 |
|
|
|
|
|
|
Communications Technology - 2.2% |
|
|
|
|
CSG Systems International, Inc.* |
| 136,600 | 3,177,316 |
|
|
|
|
|
|
Computer - Services, Software & Systems - 5.7% |
|
|
|
|
Ansys Inc.* |
| 36,700 | 1,987,305 |
|
Cognizant Technology Solutions Corp.* |
| 109,300 | 6,502,257 |
|
|
|
| 8,489,562 |
|
|
|
|
|
|
Consumer Products - 2.3% |
|
|
|
|
Nautilus Group, Inc. |
| 153,600 | 2,296,320 |
|
USANA Health Sciences, Inc.* |
| 27,100 | 1,130,612 |
|
|
|
| 3,426,932 |
|
|
|
|
|
|
Cosmetics - 1.2% |
|
|
|
|
Estee Lauder Co.'s, Inc. |
| 48,400 | 1,799,996 |
|
|
|
|
|
|
Drugs & Pharmaceuticals - 2.9% |
|
|
|
|
Barr Pharmaceuticals, Inc.* |
| 68,300 | 4,301,534 |
|
|
|
|
|
|
Education Services - 3.0% |
|
|
|
|
Strayer Education, Inc. |
| 42,550 | 4,351,163 |
|
|
|
|
|
|
Electronics - 3.2% |
|
|
|
|
Amphenol Corp. |
| 89,500 | 4,670,110 |
|
|
|
|
|
|
Electronics - Semiconductors / Components - 0.7% |
|
|
|
|
Diodes, Inc.* |
| 22,800 | 946,200 |
|
|
|
|
|
|
Electronics - Instruments & Gauges - 5.4% |
|
|
|
|
Itron, Inc.* |
| 75,600 | 4,524,660 |
|
Mettler Toledo International, Inc.* |
| 58,000 | 3,499,720 |
|
|
|
| 8,024,380 |
|
|
|
|
|
|
Finance - Small Loan - 1.4% |
|
|
|
|
SLM Corp. |
| 40,600 | 2,108,764 |
|
|
|
|
|
|
Healthcare Facilities - 1.9% |
|
|
|
|
DaVita, Inc.* |
| 46,400 | 2,793,744 |
|
|
|
|
|
|
Equity Securities - Cont'd |
| Shares | Value |
|
Healthcare Management Services - 0.3% |
|
|
|
|
AMERIGROUP Corp.* |
| 21,600 | $454,464 |
|
|
|
|
|
|
Healthcare Services - 1.9% |
|
|
|
|
Omnicare, Inc. |
| 51,600 | 2,837,484 |
|
|
|
|
|
|
Home Building - 5.3% |
|
|
|
|
KB Home |
| 46,600 | 3,028,068 |
|
Pulte Homes, Inc. |
| 125,000 | 4,802,500 |
|
|
|
| 7,830,568 |
|
|
|
|
|
|
Insurance - Multi-Line - 1.8% |
|
|
|
|
Protective Life Corp. |
| 52,000 | 2,586,480 |
|
|
|
|
|
|
Investment Management Companies - 1.7% |
|
|
|
|
Federated Investors, Inc., Class B |
| 65,100 | 2,542,155 |
|
|
|
|
|
|
Machinery - Oil Well Equipment & Services - 5.6% |
|
|
|
|
CARBO Ceramics, Inc. |
| 58,400 | 3,323,544 |
|
Superior Energy Services, Inc.* |
| 185,000 | 4,956,150 |
|
|
|
| 8,279,694 |
|
|
|
|
|
|
Machinery - Specialty - 3.1% |
|
|
|
|
Graco, Inc. |
| 101,000 | 4,588,430 |
|
|
|
|
|
|
Medical & Dental - Instruments & Supplies - 2.5% |
|
|
|
|
Sybron Dental Specialties, Inc.* |
| 90,200 | 3,719,848 |
|
|
|
|
|
|
Medical Services - 1.9% |
|
|
|
|
Coventry Health Care, Inc.* |
| 52,850 | 2,852,843 |
|
|
|
|
|
|
Metal Fabricating - 5.7% |
|
|
|
|
Maverick Tube Corp.* |
| 56,900 | 3,015,131 |
|
Reliance Steel & Aluminum Co. |
| 57,500 | 5,400,400 |
|
|
|
| 8,415,531 |
|
|
|
|
|
|
Office Furniture & Business Equipment - 1.6% |
|
|
|
|
Xerox Corp.* |
| 154,600 | 2,349,920 |
|
|
|
|
|
|
Oil - Crude Producers - 3.7% |
|
|
|
|
Cimarex Energy Co. |
| 81,800 | 3,538,668 |
|
XTO Energy, Inc. |
| 45,000 | 1,960,650 |
|
|
|
| 5,499,318 |
|
|
|
|
|
|
Production Technology Equipment - 2.7% |
|
|
|
|
Dionex Corp.* |
| 63,800 | 3,922,424 |
|
|
|
|
|
|
Rent & Lease Services - Construction - 4.2% |
|
|
|
|
WESCO International, Inc.* |
| 92,100 | 6,263,721 |
|
|
|
|
|
|
Equity Securities - Cont'd |
| Shares | Value |
|
Retail - 9.7% |
|
|
|
|
Bed Bath & Beyond, Inc.* |
| 83,700 | $3,214,080 |
|
Chico's FAS, Inc.* |
| 93,400 | 3,795,776 |
|
Ross Stores, Inc. |
| 147,200 | 4,296,768 |
|
Williams-Sonoma, Inc.* |
| 71,600 | 3,035,840 |
|
|
|
| 14,342,464 |
|
|
|
|
|
|
Savings & Loans - 2.1% |
|
|
|
|
FirstFed Financial Corp.* |
| 50,900 | 3,044,329 |
|
|
|
|
|
|
Securities Brokers & Services - 1.8% |
|
|
|
|
Legg Mason, Inc. |
| 20,600 | 2,581,798 |
|
|
|
|
|
|
Services - Commercial - 6.8% |
|
|
|
|
Hewitt Associates, Inc.* |
| 112,200 | 3,336,828 |
|
Resources Connection, Inc.* |
| 118,000 | 2,939,380 |
|
Weight Watchers International, Inc. |
| 74,700 | 3,839,580 |
|
|
|
| 10,115,788 |
|
|
|
|
|
|
Soaps & Household Chemicals - 2.3% |
|
|
|
|
Church & Dwight Co., Inc. |
| 93,350 | 3,446,482 |
|
|
|
|
|
|
Utilities - Gas Distribution - 0.9% |
|
|
|
|
Oneok, Inc. |
| 42,800 | 1,380,300 |
|
|
|
|
|
|
|
|
|
|
|
Total Equity Securities (Cost $130,149,204) |
|
| 146,433,733 |
|
|
|
|
|
|
|
|
|
|
|
|
| Principal |
|
|
High Social Impact Investments - 0.5% |
| Amount | Value |
|
Calvert Social Investment Foundation Notes, 3.00%, 7/1/08 (b)(i)(r) |
| $700,000 | 690,074 |
|
|
|
|
|
|
|
|
|
|
|
Total High Social Impact Investments (Cost $700,000) |
|
| 690,074 |
|
|
|
|
|
|
|
|
|
|
|
U.S. Government Agencies and Instrumentalities - 0.7% |
|
|
|
|
Federal Home Loan Bank Discount Notes, 4/3/06 |
| 1,000,000 | 999,744 |
|
|
|
|
|
|
|
|
|
|
|
Total U.S. Government Agencies and Instrumentalities |
|
|
|
|
(Cost $999,744) |
|
| 999,744 |
|
|
|
|
|
|
TOTAL INVESTMENTS (Cost $131,848,948) - 100.2% |
| 148,123,551 |
| |
Other assets and liabilities, net - (0.2%) |
|
| (276,746) |
|
Net Assets - 100% |
|
| $147,846,805 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets Consist of: |
|
|
|
|
Paid-in capital applicable to the following shares of common stock, 250,000,000 shares of $0.01 par value share authorized for Class A, Class B, Class C and Class I combined: |
|
|
|
|
Class A: 4,415,938 shares outstanding |
|
| $104,302,473 |
|
Class B: 702,209 shares outstanding |
|
| 17,626,957 |
|
Class C: 628,065 shares outstanding |
|
| 13,711,990 |
|
Class I: 47,413 shares outstanding |
|
| 1,032,432 |
|
Undistributed net investment income (loss) |
|
| (1,044,834) |
|
Accumulated net realized gain (loss) on investments |
|
| (4,096,816) |
|
Net unrealized appreciation (depreciation) on investments |
|
| 16,274,603 |
|
Net Assets |
|
| $147,846,805 |
|
|
|
|
|
|
|
|
|
|
|
Net Asset Value Per Share |
|
|
|
|
Class A (based on net assets of $114,988,701) |
|
| $26.04 |
|
Class B (based on net assets of $16,915,178) |
|
| $24.09 |
|
Class C (based on net assets of $14,677,186) |
|
| $23.37 |
|
Class I (based on net assets of $1,265,740) |
|
| $26.70 |
|
* Non income producing security
(b) This security was valued by the Board of Directors, See note A.
(i) The coupon rate shown on floating or adjustable rate securities represents the rate at period end.
(r) Restricted securities represent 0.5% of the net assets of the Fund.
Restricted Securities |
| Acquisition Dates | Cost |
Calvert Social Investment Foundation Notes, 3.00%, 7/1/08 |
| 7/1/05 | $700,000 |
See notes to financial statements.
Statement of Operations
Six Months Ended March 31, 2006
Net Investment Income |
|
Investment Income: |
|
Dividend income | $341,968 |
Interest income | 18,800 |
Total investment income | 360,768 |
|
|
Expenses: |
|
Investment advisory fee | 461,664 |
Transfer agency fees and expenses | 241,426 |
Administrative Services fees | 176,846 |
Distribution Plan expenses: |
|
Class A | 193,784 |
Class B | 81,796 |
Class C | 70,009 |
Directors' fees and expenses | 11,013 |
Custodian fees | 16,064 |
Registration fees | 24,837 |
Reports to shareholders | 65,942 |
Professional fees | 12,818 |
Miscellaneous | 29,397 |
Total expenses | 1,385,596 |
Reimbursement from Advisor: |
|
Class I | (9,302) |
Fees paid indirectly | (10,692) |
Net expenses | 1,365,602 |
|
|
Net Investment Income (Loss) | (1,004,834) |
|
|
Realized and Unrealized Gain (Loss) on Investments |
|
Net realized gain (loss) | (134,762) |
Change in unrealized appreciation or (depreciation) | 16,141,447 |
|
|
Net Realized and Unrealized Gain |
|
(Loss) on Investments | 16,006,685 |
|
|
Increase (Decrease) in Net Assets |
|
Resulting From Operations | $15,001,851 |
See notes to financial statements.
Statements of Changes in Net Assets
|
| Six Months Ended | Year Ended |
|
|
| March 31, | September 30, |
|
Increase (Decrease) in Net Assets |
| 2006 | 2005 |
|
Operations: |
|
|
|
|
Net investment income (loss) |
| ($1,004,834) | ($2,121,191) |
|
Net realized gain (loss) |
| (134,762) | 26,171,033 |
|
Change in unrealized appreciation |
|
|
|
|
or (depreciation) |
| 16,141,447 | (12,274,743) |
|
|
|
|
|
|
Increase (Decrease) in Net Assets |
|
|
|
|
Resulting From Operations |
| 15,001,851 | 11,775,099 |
|
|
|
|
|
|
Capital share transactions: |
|
|
|
|
Shares sold: |
|
|
|
|
Class A Shares |
| 6,899,940 | 15,077,904 |
|
Class B Shares |
| 568,481 | 1,569,256 |
|
Class C Shares |
| 803,244 | 2,601,187 |
|
Class I Shares |
| 828,454 | 2,336,257 |
|
Redemption fees: |
|
|
|
|
Class A Shares |
| 496 | 556 |
|
Class B Shares |
| 425 | -- |
|
Class C Shares |
| 16 | -- |
|
Shares redeemed: |
|
|
|
|
Class A Shares |
| (14,749,816) | (25,010,050) |
|
Class B Shares |
| (1,836,454) | (3,286,444) |
|
Class C Shares |
| (1,606,721) | (2,473,154) |
|
Class I Shares |
| (2,170,952) | (807,119) |
|
Total capital share transactions |
| (11,262,887) | (9,991,607) |
|
|
|
|
|
|
Total Increase (Decrease) in Net Assets |
| 3,738,964 | 1,783,492 |
|
|
|
|
|
|
Net Assets |
|
|
|
|
Beginning of period |
| 144,107,841 | 142,324,349 |
|
End of period (including net investment loss of $1,004,834 and $0, respectively) |
| $147,846,805 | $144,107,841 |
|
|
|
|
|
|
|
|
|
|
|
Capital Share Activity |
|
|
|
|
Shares sold: |
|
|
|
|
Class A Shares |
| 284,831 | 646,986 |
|
Class B Shares |
| 25,133 | 72,372 |
|
Class C Shares |
| 36,641 | 123,879 |
|
Class I Shares |
| 33,583 | 98,277 |
|
Shares redeemed: |
|
|
|
|
Class A Shares |
| (607,267) | (1,071,905) |
|
Class B Shares |
| (81,458) | (150,740) |
|
Class C Shares |
| (73,930) | (116,881) |
|
Class I Shares |
| (94,868) | (33,276) |
|
Total capital share activity |
| (477,335) | (431,288) |
|
See notes to financial statements.
Notes to Financial Statements
Note A -- Significant Accounting Policies
General: The Calvert Capital Accumulation Fund (the "Fund"), a series of Calvert World Values Fund, Inc., is registered under the Investment Company Act of 1940 as a non-diversified, open-end management investment company. The operation of each series is accounted for separately. The Fund offers four classes of shares of capital stock. Class A shares are sold with a maximum front-end sales charge of 4.75%. Class B shares are sold without a front-end sales charge. With certain exceptions, the Fund will impose a deferred sales charge at the time of redemption, depending on how long investors have owned the shares. Class C shares are sold without a front-end sales charge. With certain exceptions, the Fund will impose a deferred sales charge on shares sold within one year of purchase. Class B and Class C shares have higher levels of expenses than Class A shares. Class I shares require a minimum account balance of $1,000,000. The $1 million minimum initial investment may be waived for certain institutional acc ounts, where it is believed to be in the best interest of the Fund and its shareholders. Class I shares have no front-end or deferred sales charge and have lower levels of expenses than Class A Shares. Each class has different: (a) dividend rates, due to differences in Distribution Plan expenses and other class-specific expenses, (b) exchange privileges; and (c) class-specific voting rights.
Security Valuation: Net asset value per share is determined every business day as of the close of the regular session of the New York Stock Exchange (generally 4:00 p.m. Eastern time). The Fund uses independent pricing services approved by the Board of Directors to value their investments wherever possible. Securities for which market quotations are available are valued at last sale price or official closing price on the primary market or exchange in which they trade. Short-term notes are stated at amortized cost, which approximates fair value. The Fund may invest in securities whose resale is subject to restrictions. Investments for which market quotations are not available or deemed not reliable are fair 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. 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 for the investments existed, and the differences could be material.
At March 31, 2006, securities valued at $690,074, or 0.5% of net assets, were fair valued in good faith under the direction of the Board of Directors.
Repurchase Agreements: The Fund may enter into repurchase agreements with recognized financial institutions or registered broker/dealers and, in all instances, holds underlying securities with a value exceeding the total repurchase price, including accrued interest. Although risk is mitigated by the collateral, the Fund could experience a delay in recovering its value and a possible loss of income or value if the counterparty fails to perform in accordance with the terms of the agreement.
Restricted Securities: The Fund may invest in securities that are subject to legal or contractual restrictions on resale. Generally, these securities may only be sold publicly upon registration under the Securities Act of 1933 or in transactions exempt from such registration. Information regarding restricted securities is included at the end of the Fund's Statement of Net Assets.
Security Transactions and Net Investment Income: Security transactions are accounted for on trade date. Realized gains and losses are recorded on an identified cost basis and may include proceeds from litigation. Dividend income is recorded on the ex-dividend date. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost investments and/or as a realized gain. Interest income, which includes amortization of premium and accretion of discount on debt securities, is accrued as earned. 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.
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 financial statements in conformity with accounting principles generally accepted in the United States 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 reporting period. Actual results could differ from those estimates.
Redemption Fees: The Fund charges a 2% redemption fee on redemptions, including exchanges, made within 30 days of purchase in the same Fund (within five days for Class I shares). The redemption fee is paid to the Fund, and is accounted for as an addition to paid-in capital. The fee is intended to discourage market-timers by ensuring that short-term trading costs are borne by the investors making the transactions and not the shareholders already in the Fund.
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. These credits are used to reduce the Fund's expenses. 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.
Note B -- Related Party Transactions
Calvert Asset Management Company, Inc. (the "Advisor") is wholly-owned by Calvert Group, Ltd. ("Calvert"), which is indirectly wholly owned by UNIFI Mutual Holding Company. The Advisor provides investment advisory services and pays the salaries and fees of officers and Directors of the Fund who are employees of the Advisor or its affiliates. For its services, the Advisor receives an annual fee, payable monthly, of .65% of the Fund's average daily net assets. Under the terms of the agreement, $80,135 was payable at period end. In addition, $49,636 was payable at period end for operating expenses paid by the Advisor during March 2006.
The Advisor has contractually agreed to limit net annual fund operating expenses through January 31, 2007 for Class I. The contractual expense cap is 0.86%. For the purposes of this expense limit, operating expenses do not include interest expense, brokerage commissions, taxes, and extraordinary expenses. To the extent that any offset credits are earned, the Advisor's obligation under the contractual limitation may be reduced and the Advisor may benefit from the expense offset arrangement.
Calvert Administrative Services Company, an affiliate of the Advisor, provides administrative services to the Fund for an annual fee, payable monthly of .25% for Class A, Class B and Class C, and .10% for Class I shares based on their average daily net assets. Under the terms of the agreement, $30,674 was payable at period end.
Calvert Distributors, Inc., an affiliate of the Advisor, is the distributor and principal underwriter for the Fund. Distribution Plans, adopted by Class A, Class B, and Class C shares, allow the Fund to pay the Distributor for expenses and services associated with distribution of shares. The expenses paid may not exceed .35%, 1.00% and 1.00% annually of average daily net assets of Class A, Class B, and Class C, respectively. Class I shares do not have Distribution Plan expenses. Under the terms of the agreement, $59,912 was payable at period end.
The Distributor received $28,166 as its portion of the commissions charged on sales of the Fund's Class A shares for the six months ended March 31, 2006.
Calvert Shareholder Services, Inc. ("CSSI"), an affiliate of the Advisor, acts as shareholder servicing agent for the Fund. For its services, CSSI received a fee of $68,953 for the six months ended March 31, 2006. Under the terms of the agreement, $11,305 was payable at period end. Boston Financial Data Services, Inc. is the transfer and dividend disbursing agent.
The Fund may invest in Community Investment Notes issued by the Calvert Social Investment Foundation (the "CSI Foundation"). The CSI Foundation is a 501(c)(3) non-profit organization that receives in-kind support from the Calvert Group, Ltd. and its subsidiaries. The Fund has received from the Securities and Exchange Commission an exemptive order permitting the Fund to make investments in these notes under certain conditions.
On December 2, 2005, shareholders approved the reorganization of several Calvert Fund Boards. As a result of this reorganization, Directors now oversee additional portfolios. Each Director of the Fund who is not an employee of the Advisor or its affiliates receives an annual retainer of $34,000 ($9,500 prior to December 2, 2005) plus a meeting fee of $2,000 ($500 prior to December 2, 2005) for each Board meeting attended. An additional Chair support fee of $24,000 annually is paid to the Fund Chair. Additional fees of up to $10,000 ($5,000 prior to December 2, 2005) annually may be paid to the Chairperson of special committees of the Board and the lead disinterested Director. Directors' fees are allocated to each of the funds served.
Note C -- Investment Activity
During the period, purchases and sales of investments, other than short-term securities, were $7,150,428 and $18,569,169 respectively.
The cost of investments owned at March 31, 2006 for federal income tax purposes was $132,066,985. Net unrealized appreciation aggregated $16,056,566, of which $21,047,792 related to appreciated securities and $4,991,226 related to depreciated securities.
Net realized capital loss carryforwards for federal income tax purposes of $3,962,054 at September 30, 2005 may be utilized to offset future capital gains until expiration in September 2011.
Note D -- Line of Credit
A financing agreement is in place with all Calvert Group Funds (except for the Calvert Social Investment Fund's Balanced and Enhanced Equity Portfolios, the CVS Calvert Social Balanced Portfolio and the CVS Ameritas Index 500 Portfolio) and State Street Corporation ("SSC"). Under the agreement, SSC provides an unsecured line of credit facility, in the aggregate amount of $50 million ($25 million committed and $25 million uncommitted), accessible by the Funds for temporary or emergency purposes only. Borrowings under the committed facility bear interest at the overnight Federal Funds Rate plus .50% per annum. A commitment fee of .10% per annum is incurred on the unused portion of the committed facility, which is allocated to all participating funds. The Fund had $167,417 of outstanding borrowing at an interest rate of 5.375% at March 31, 2006. For the six months ended March 31, 2006, borrowings by the Fund under the Agreement were as follows:
| Weighted |
| Month of |
Average | Average | Maximum | Maximum |
Daily | Interest | Amount | Amount |
Balance | Rate | Borrowed | Borrowed |
$16,459 | 4.51% | $662,830 | October 2005 |
Financial Highlights |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Periods Ended |
|
|
|
| March 31, | September 30, | September 30, |
|
Class A Shares |
| 2006 | 2005 | 2004 |
|
Net asset value, beginning |
| $23.42 | $21.60 | $19.82 |
|
Income from investment operations |
|
|
|
|
|
Net investment income (loss) |
| (.16) | (.31) | (.32) |
|
Net realized and unrealized gain (loss) |
| 2.78 | 2.13 | 2.10 |
|
Total from investment operations |
| 2.62 | 1.82 | 1.78 |
|
Total increase (decrease) in net asset value |
| 2.62 | 1.82 | 1.78 |
|
Net asset value, ending |
| $26.04 | $23.42 | $21.60 |
|
Total return* |
| 11.19% | 8.43% | 8.98% |
|
Ratios to average net assets: A |
|
|
|
|
|
Net investment income (loss) |
| (1.25%) (a) | (1.26%) | (1.41%) |
|
Total expenses |
| 1.77% (a) | 1.68% | 1.73% |
|
Expenses before offsets |
| 1.77% (a) | 1.68% | 1.73% |
|
Net expenses |
| 1.76% (a) | 1.68% | 1.72% |
|
Portfolio turnover |
| 5% | 157% | 101% |
|
Net assets, ending (in thousands) |
| $114,989 | $110,970 | $111,520 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Years Ended |
|
|
|
| September 30, | September 30, | September 30, |
|
Class A Shares |
| 2003 | 2002 | 2001 |
|
Net asset value, beginning |
| $15.79 | $19.35 | $36.34 |
|
Income from investment operations |
|
|
|
|
|
Net investment income (loss) |
| (.26) | (.29) | (.14) |
|
Net realized and unrealized gain (loss) |
| 4.29 | (3.26) | (11.61) |
|
Total from investment operations |
| 4.03 | (3.55) | (11.75) |
|
Distributions from |
|
|
|
|
|
Net realized gain |
| -- | (.01) | (5.24) |
|
Total distributions |
| -- | (.01) | (5.24) |
|
Total increase (decrease) in net asset value |
| 4.03 | (3.56) | (16.99) |
|
Net asset value, ending |
| $19.82 | $15.79 | $19.35 |
|
|
|
|
|
|
|
Total return* |
| 25.52% | (18.36%) | (36.60%) |
|
Ratios to average net assets: A |
|
|
|
|
|
Net investment income (loss) |
| (1.48%) | (1.47%) | (1.18%) |
|
Total expenses |
| 1.82% | 1.74% | 1.69% |
|
Expenses before offsets |
| 1.82% | 1.74% | 1.69% |
|
Net expenses |
| 1.81% | 1.73% | 1.64% |
|
Portfolio turnover |
| 170% | 93% | 71% |
|
Net assets, ending (in thousands) |
| $104,878 | $83,643 | $105,151 |
|
|
|
|
|
|
|
Financial Highlights |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Periods Ended |
|
|
|
| March 31, | September 30, | September 30, |
|
Class B Shares |
| 2006 | 2005 | 2004 |
|
Net asset value, beginning |
| $21.76 | $20.24 | $18.73 |
|
Income from investment operations |
|
|
|
|
|
Net investment income (loss) |
| (.24) | (.49) | (.48) |
|
Net realized and unrealized gain (loss) |
| 2.57 | 2.01 | 1.99 |
|
Total from investment operations |
| 2.33 | 1.52 | 1.51 |
|
Total increase (decrease) in net asset value |
| 2.33 | 1.52 | 1.51 |
|
Net asset value, ending |
| $24.09 | $21.76 | $20.24 |
|
Total return* |
| 10.71% | 7.51% | 8.06% |
|
Ratios to average net assets: A |
|
|
|
|
|
Net investment income (loss) |
| (2.09%) (a) | (2.12%) | (2.28%) |
|
Total expenses |
| 2.62% (a) | 2.54% | 2.60% |
|
Expenses before offsets |
| 2.62% (a) | 2.54% | 2.60% |
|
Net expenses |
| 2.60% (a) | 2.53% | 2.59% |
|
Portfolio turnover |
| 5% | 157% | 101% |
|
Net assets, ending (in thousands) |
| $16,915 | $16,503 | $16,936 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Years Ended |
|
|
|
| September 30, | September 30, | September 30, |
|
Class B Shares |
| 2003 | 2002 | 2001 |
|
Net asset value, beginning |
| $15.07 | $18.64 | $35.47 |
|
Income from investment operations |
|
|
|
|
|
Net investment income (loss) |
| (.39) | (.44) | (.24) |
|
Net realized and unrealized gain (loss) |
| 4.05 | (3.12) | (11.35) |
|
Total from investment operations |
| 3.66 | (3.56) | (11.59) |
|
Distributions from |
|
|
|
|
|
Net realized gain |
| -- | (.01) | (5.24) |
|
Total distributions |
| -- | (.01) | (5.24) |
|
Total increase (decrease) in net asset value |
| 3.66 | (3.57) | (16.83) |
|
Net asset value, ending |
| $18.73 | $15.07 | $18.64 |
|
|
|
|
|
|
|
Total return* |
| 24.29% | (19.11%) | (37.12%) |
|
Ratios to average net assets: A |
|
|
|
|
|
Net investment income (loss) |
| (2.45%) | (2.38%) | (2.04%) |
|
Total expenses |
| 2.79% | 2.65% | 2.56% |
|
Expenses before offsets |
| 2.79% | 2.65% | 2.56% |
|
Net expenses |
| 2.78% | 2.64% | 2.50% |
|
Portfolio turnover |
| 170% | 93% | 71% |
|
Net assets, ending (in thousands) |
| $15,152 | $11,534 | $13,914 |
|
|
|
|
|
|
|
Financial Highlights |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Periods Ended |
|
|
|
| March 31, | September 30, | September 30, |
|
Class C Shares |
| 2006 | 2005 | 2004 |
|
Net asset value, beginning |
| $21.10 | $19.62 | $18.15 |
|
Income from investment operations |
|
|
|
|
|
Net investment income (loss) |
| (.23) | (.44) | (.43) |
|
Net realized and unrealized gain (loss) |
| 2.50 | 1.92 | 1.90 |
|
Total from investment operations |
| 2.27 | 1.48 | 1.47 |
|
Total increase (decrease) in net asset value |
| 2.27 | 1.48 | 1.47 |
|
Net asset value, ending |
| $23.37 | $21.10 | $19.62 |
|
Total return* |
| 10.76% | 7.54% | 8.10% |
|
Ratios to average net assets: A |
|
|
|
|
|
Net investment income (loss) |
| (2.02%) (a) | (2.07%) | (2.23%) |
|
Total expenses |
| 2.54% (a) | 2.49% | 2.55% |
|
Expenses before offsets |
| 2.54% (a) | 2.49% | 2.55% |
|
Net expenses |
| 2.53% (a) | 2.49% | 2.54% |
|
Portfolio turnover |
| 5% | 157% | 101% |
|
Net assets, ending (in thousands) |
| $14,677 | $14,038 | $12,914 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Years Ended |
|
|
|
| September 30, | September 30, | September 30, |
|
Class C Shares |
| 2003 | 2002 | 2001 |
|
Net asset value, beginning |
| $14.59 | $18.02 | $34.48 |
|
Income from investment operations |
|
|
|
|
|
Net investment income (loss) |
| (.37) | (.42) | (.22) |
|
Net realized and unrealized gain (loss) |
| 3.93 | (3.00) | (11.00) |
|
Total from investment operations |
| 3.56 | (3.42) | (11.22) |
|
Distributions from |
|
|
|
|
|
Net realized gain |
| -- | (.01) | (5.24) |
|
Total distributions |
| -- | (.01) | (5.24) |
|
Total increase (decrease) in net asset value |
| 3.56 | (3.43) | (16.46) |
|
Net asset value, ending |
| $18.15 | $14.59 | $18.02 |
|
|
|
|
|
|
|
Total return* |
| 24.40% | (18.99%) | (37.11%) |
|
Ratios to average net assets: A |
|
|
|
|
|
Net investment income (loss) |
| (2.35%) | (2.32%) | (1.98%) |
|
Total expenses |
| 2.69% | 2.59% | 2.49% |
|
Expenses before offsets |
| 2.69% | 2.59% | 2.49% |
|
Net expenses |
| 2.68% | 2.58% | 2.44% |
|
Portfolio turnover |
| 170% | 93% | 71% |
|
Net assets, ending (in thousands) |
| $10,896 | $8,365 | $9,757 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Highlights |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Periods Ended |
|
|
|
| March 31, | September 30, | September 30, |
|
Class I Shares |
| 2006 | 2005 | 2004 |
|
Net asset value, beginning |
| $23.89 | $21.85 | $19.88 |
|
Income from investment operations |
|
|
|
|
|
Net investment income (loss) |
| (.04) | (.06) | (.09) |
|
Net realized and unrealized gain (loss) |
| 2.85 | 2.10 | 2.06 |
|
Total from investment operations |
| 2.81 | 2.04 | 1.97 |
|
Total increase (decrease) in net asset value |
| 2.81 | 2.04 | 1.97 |
|
Net asset value, ending |
| $26.70 | $23.89 | $21.85 |
|
Total return* |
| 11.76% | 9.34% | 9.91% |
|
Ratios to average net assets: A |
|
|
|
|
|
Net investment income (loss) |
| (0.40%) (a) | (0.43%) | (0.54%) |
|
Total expenses |
| 2.82% (a) | 1.28% | 1.23% |
|
Expenses before offsets |
| .88% (a) | .87% | .86% |
|
Net expenses |
| .86% (a) | .86% | .86% |
|
Portfolio turnover |
| 5% | 157% | 101% |
|
Net assets, ending (in thousands) |
| $1,266 | $2,596 | $955 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Periods Ended |
|
|
|
| September 30, | January 18, | September 30, |
|
Class I Shares |
| 2003## | 2002# | 2001 |
|
Net asset value, beginning |
| $18.79 | $20.84 | $36.84 |
|
Income from investment operations |
|
|
|
|
|
Net investment income (loss) |
| (.03) | (.05) | (.23) |
|
Net realized and unrealized gain (loss) |
| 1.12 | 4.20 | (10.53) |
|
Total from investment operations |
| 1.09 | 4.15 | (10.76) |
|
Distributions from |
|
|
|
|
|
Net realized gain |
| -- | (.01) | (5.24) |
|
Total distributions |
| -- | (.01) | (5.24) |
|
Total increase (decrease) in net asset value |
| 1.09 | 4.14 | (16.00) |
|
Net asset value, ending |
| $19.88 | $24.98 | $20.84 |
|
|
|
|
|
|
|
Total return* |
| 5.80% | 19.92% | (34.61%) |
|
Ratios to average net assets: A |
|
|
|
|
|
Net investment income (loss) |
| (0.50%) (a) | (0.64%) (a) | (0.67%) |
|
Total expenses |
| 1.23% (a) | 1,316.21%(a) | 33.47% |
|
Expenses before offsets |
| .87% (a) | .80% (a) | 2.19% |
|
Net expenses |
| .86% (a) | .80% (a) | .80% |
|
Portfolio turnover |
| 66% | 9% | 71% |
|
Net assets, ending (in thousands) |
| $529 | $0 | $1 |
|
A Total expenses do not reflect amounts reimbursed and/or waived by the Advisor or reductions from expense offset arrangements. Expenses before offsets reflect expenses after reimbursement and/or waiver by the Advisor but prior to reductions from expense offset arrangements. Net expenses are net of all reductions and represent the net expenses paid by the Fund.
(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.
# The last remaining shareholder in Class I redeemed on January 18, 2002.
## Class I shares resumed upon shareholder investment on June 3, 2003.
See notes to financial statements.
Explanation of Financial Tables
Schedule of Investments
The Schedule of Investments is a snapshot of all securities held in the fund at their market value, on the last day of the reporting period. Securities are listed by asset type (e.g., common stock, corporate bonds, U.S. government obligations) and may be further broken down into sub-groups and by industry classification.
Statement of Assets and Liabilities
The Statement of Assets and Liabilities is often referred to as the fund's balance sheet. It lists the value of what the fund owns, is due and owes on the last day of the reporting period. The fund's assets include the market value of securities owned, cash, receivables for securities sold and shareholder subscriptions, and receivables for dividends and interest payments that have been earned, but not yet received. The fund's liabilities include payables for securities purchased and shareholder redemptions, and expenses owed but not yet paid. The statement also reports the fund's net asset value (NAV) per share on the last day of the reporting period. The NAV is calculated by dividing the fund's net assets (assets minus liabilities) by the number of shares outstanding. This statement is accompanied by a Schedule of Investments. Alternatively, if certain conditions are met, a Statement of Net Assets may be presented in lieu of this statement and the Schedule of Investments.
Statement of Net Assets
The Statement of Net Assets provides a detailed list of the fund's holdings, including each security's market value on the last day of the reporting period. The Statement of Net Assets includes a Schedule of Investments. Other assets are added and other liabilities subtracted from the investments total to calculate the fund's net assets. Finally, net assets are divided by the outstanding shares of the fund to arrive at its share price, or Net Asset Value (NAV) per share.
At the end of the Statement of Net Assets is a table displaying the composition of the fund's net assets. Paid in Capital is the money invested by shareholders and represents the bulk of net assets. Undistributed Net Investment Income and Accumulated Net Realized Gains usually approximate the amounts the fund had available to distribute to shareholders as of the statement date. Accumulated Realized Losses will appear as negative balances. Unrealized Appreciation (Depreciation) is the difference between the market value of the fund's investments and their cost, and reflects the gains (losses) that would be realized if the fund were to sell all of its investments at their statement-date values.
Statement of Operations
The Statement of Operations summarizes the fund's investment income earned and expenses incurred in operating the fund. Investment income includes dividends earned from stocks and interest earned from interest-bearing securities in the fund. Expenses incurred in operating the fund include the advisory fee paid to the investment advisor, administrative services fee, distribution plan expenses (if applicable), transfer agent fees, shareholder servicing expenses, custodial, legal, and audit fees, and the printing and postage expenses related to shareholder reports. Expense offsets (fees paid indirectly) are also shown. Credits earned from offset arrangements are used to reduce the fund's expenses. This statement also shows net gains (losses) realized on the sale of investments and the increase or decrease in the unrealized appreciation (depreciation) on investments held during the period.
Statement of Changes in Net Assets
The Statement of Changes in Net Assets shows how the fund's total net assets changed during the two most recent reporting periods. Changes in the fund's net assets are attributable to investment operations, distributions and capital share transactions.
The Operations section of the report summarizes information detailed in the Statement of Operations. The Distribution section shows the dividend and capital gain distributions made to shareholders. The amounts shown as distributions in this section may not match the net investment income and realized gains amounts shown in the Operations section because distributions are determined on a tax basis and certain investments or transactions may be treated differently for financial statement and tax purposes. The Capital Share Transactions section shows the amount shareholders invested in the fund, either by purchasing shares or by reinvesting distributions, and the amounts redeemed. The corresponding numbers of shares issued, reinvested and redeemed are shown at the end of the report.
Financial Highlights
The Financial Highlights table provides a per-share breakdown per class of the components that affect the fund's net asset value for current and past reporting periods. The table provides total return, total distributions, expense ratios, portfolio turnover and net assets for the applicable period. Total return is a measure of a fund's performance that encompasses all elements of return: dividends, capital gain distributions and changes in net asset value. Total return is the change in value of an investment over a given period, assuming reinvestment of any dividends and capital gain distributions, expressed as a percentage of the initial investment. Total distributions include distributions from net investment income and net realized gains. Long-term gains are earned on securities held in the fund more than one year. Short-term gains, on the sale of securities held less than one year, are treated as ordinary dividend income for tax purposes. The expense ratio is a fund's cost of doing business, expressed as a percentage of net assets. These expenses directly reduce returns to shareholders. Portfolio turnover measures the trading activity in a fund's investment portfolio -- how often securities are bought and sold by a fund. Portfolio turnover is affected by market conditions, changes in the size of the fund, the nature of the fund's investments and the investment style of the portfolio.
Proxy Voting
The Proxy Voting Guidelines of the Calvert Funds that the Fund uses to determine how to vote proxies relating to portfolio securities are provided as an Appendix to the Fund's Statement of Additional Information. The Statement of Additional Information can be obtained free of charge by calling the Fund at 1-800-368-2745, by visiting the Calvert website at www.calvert.com; or by visiting the SEC's website at www.sec.gov.
Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund's website at www.calvert.com and on the SEC's website at www.sec.gov.
Availability of Quarterly Portfolio Holdings
The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Fund's Form N-Q is available on the SEC's website at www.sec.gov. The Fund's Form N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC; information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
Basis for Board's Approval of Investment Advisory Contract
The Board of Directors, and by a separate vote, the disinterested Directors, approved the continuance of the Investment Advisory Agreement between the Fund and the Advisor with respect to the Fund on December 6, 2005.
In evaluating the Investment Advisory Agreement, the Board of Directors considered a variety of information relating to the Fund and the Advisor. The disinterested Directors reviewed a report prepared by the Advisor regarding various services provided to the Fund by the Advisor and its affiliates. Such report included, among other things, information regarding the Advisor's personnel and the Advisor's revenue and cost of providing services to the Fund, and a separate report prepared by an independent third party, which provided a statistical analysis comparing the Fund's investment performance, expenses, and fees to comparable mutual funds. The disinterested Directors were separately represented by independent legal counsel with respect to their consideration of the reapproval of the Investment Advisory Agreement. Prior to voting, the disinterested Directors reviewed the proposed continuance of the Investment Advisory Agreement with management and also met in private sessions with their counsel at which n o representatives of management were present.
In the course of their deliberations regarding the Investment Advisory Agreement, the Directors considered the following factors, among other things: the nature, extent and quality of the services provided by the Advisor including the personnel providing such services; the Advisor's financial condition; the level and method of computing the Fund's advisory fee; comparative performance, fee and expense information for the Fund; the profitability of the Calvert Group of Funds to the Advisor; the allocation of the Fund's brokerage, including the Advisor's process for monitoring "best execution"; the direct and indirect benefits, if any, derived by the Advisor from the relationship with the Fund; the effect of the Fund's growth and size on the Fund's performance and expenses; the affiliated distributor's process for monitoring sales load breakpoints; the Advisor's compliance programs and policies; the Advisor's performance of substantially similar duties for other funds; and any possible conflicts of interest .
In considering the nature, extent and quality of the services provided by the Advisor under the Investment Advisory Agreement, the Board of Directors reviewed information provided by the Advisor relating to its operations and personnel, including, among other things, biographical information on the Advisor's supervisory and professional staff and descriptions of its organizational and management structure. The Directors also took into account similar information provided periodically throughout the previous year by the Advisor as well as the Directors' familiarity with the Advisor's senior management through Board of Directors' meetings, discussions and other reports. The Advisor's administrative capabilities, including its ability to supervise the other service providers for the Fund, were also considered. The Board of Directors discussed the Advisor's effectiveness in monitoring the performance of the Subadvisor and its timeliness in responding to performance issues. The Directors concluded that they we re satisfied with the nature, extent and quality of services provided to the Fund under the Investment Advisory Agreement.
In considering the Fund's performance, the Board of Directors noted that the Board reviews on a quarterly basis detailed information about the Fund's performance results, portfolio composition and investment strategies. The Directors also reviewed various comparative data provided to them in connection with their consideration of the renewal of the Investment Advisory Agreement, including, among other information, a comparison of the Fund's total return with its Lipper index and with that of other mutual funds deemed to be in its peer group by the independent third party in its report. This comparison indicated that for the one- and three-year annualized periods ended June 30, 2005, the Fund underperformed its Lipper index and its performance was below the median of its peer group. The Fund's performance was above the median of its peer group and outperformed its Lipper index for the five-year period ended June 30, 2005. The Directors took into account the steps management has taken in an attempt to impro ve the Fund's performance, including the recent replacement of the Fund's Subadvisor in September, 2005 and noted that the independent third party report did not reflect the performance of the new Subadvisor. Based upon their review, the Directors concluded that appropriate action has been taken to address the Fund's performance and retained confidence in the Advisor's overall capabilities to manage the Fund.
In considering the Fund's fees and expenses, the Board of Directors compared the Fund's fees and total expense ratios with various comparative data for the funds in its peer group. Among other things, the independent report's expense highlights indicated that the Fund's advisory fee was below the median of its peer group. The data also indicated that total expenses were above the median of its peer group. The Board of Directors noted the Advisor's discussion of the Fund's expenses and certain factors that bear upon the level of such expenses. Based upon their review, the Board of Directors determined that the advisory fee was reasonable in view of the quality of services and the other factors considered.
In reviewing the overall profitability of the advisory fee to the Fund's Advisor, the Board also considered the fact that affiliates provide shareholder servicing and administrative services to the Fund for which they receive compensation. The information considered by the Board included Calvert's operating profit margin information both before and after tax expenses with respect to the services that the Advisor and its affiliates provide to the Calvert Group of Funds complex. The Directors reviewed the profitability of the Advisor's relationship with the Fund in terms of the total amount of annual advisory fees it receives with respect to the Fund and whether the Advisor had the financial wherewithal to continue to provide a high level of services to the Fund. The Directors also considered that the Advisor derives reputational and other indirect benefits. The Directors also noted that the Advisor pays the subadvisory fees out of the advisory fees the Advisor receives from the Fund. Based upon their revie w, the Directors concluded that the Advisor's level of profitability from its relationship with the Fund was reasonable.
The Board considered the effect of the Fund's current relatively small size and any potential future growth on its performance and expenses. The Directors concluded that adding breakpoints to the advisory fee at specified asset levels would not be appropriate at this time given the Fund's current size. The Board of Directors also noted that if the Fund's assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other expenses.
In reapproving the Investment Advisory Agreement, the Board of Directors, including the disinterested Directors, did not identify any single factor as controlling, and each Director attributed different weight to various factors.
Conclusions
The Directors reached the following conclusions regarding the Investment Advisory Agreement, among others: (a) the Advisor has demonstrated that it possesses the capability and resources to perform the duties required of it under the Investment Advisory Agreement; (b) the Advisor maintains appropriate compliance programs; (c) appropriate action has been taken with respect to the performance of the Fund; and (d) the Fund's advisory expenses are reasonable in relation to those of similar funds and to the services to be provided by the Advisor. Based on their conclusions, the Directors determined that reapproval of the Investment Advisory Agreement would be in the interests of the Fund and its shareholders.
A special shareholder meeting was held on December 2, 2005 by the Calvert World Values Fund, Inc. for the purpose of electing a Board of Trustees/Directors. The voting results were as follows:
Name of Trustee/Director | For | Withhold | Abstain | Broker Non-Votes |
Rebecca Adamson | 17,459,967.086 | 49,814.768 | 45,425.000 | 0.000 |
Richard L. Baird, Jr. | 17,449,355.168 | 60,426.686 | 45,425.000 | 0.000 |
Frederick A. Davie, Jr. | 17,447,416.121 | 62,365.733 | 45,425.000 | 0.000 |
John Guffey, Jr. | 17,434,853.804 | 74,928.050 | 45,425.000 | 0.000 |
Miles Douglas Harper, III | 17,445,706.542 | 64,075.312 | 45,425.000 | 0.000 |
Joy V. Jones | 17,449,368.957 | 60,412.897 | 45,425.000 | 0.000 |
Terrence J. Mollner, Ed. D. | 17,453,761.909 | 56,019.945 | 45,425.000 | 0.000 |
Sydney Amara Morris | 17,455,539.879 | 54,241.975 | 45,425.000 | 0.000 |
Rustum Roy | 17,453,215.802 | 56,566.052 | 45,425.000 | 0.000 |
Tessa Tennant | 17,463,013.493 | 46,768.361 | 45,425.000 | 0.000 |
Barbara J. Krumsiek | 17,455,153.259 | 54,628.595 | 45,425.000 | 0.000 |
D. Wayne Silby, Esq. | 17,443,789.792 | 65,992.062 | 45,425.000 | 0.000 |
This page intentionally left blank.
Calvert Capital Accumulation 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 BFDS
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's Family of Funds
Tax-Exempt
Money Market Funds
CTFR Money Market Portfolio
Taxable
Money Market Funds
First Government Money Market Fund
CSIF Money Market Portfolio
Municipal Funds
CTFR Limited-Term Portfolio
CTFR Long-Term Portfolio
CTFR Vermont Municipal Portfolio
National Muni. Intermediate Fund
California Limited-Term Municipal Fund
Taxable Bond Funds
CSIF Bond Portfolio
Income Fund
Short Duration Income Fund
Long-Term Income Fund
Equity Funds
CSIF Enhanced Equity Portfolio
CSIF Equity Portfolio
Calvert Large Cap Growth Fund
Capital Accumulation Fund
CWV International Equity Fund
New Vision Small Cap Fund
Calvert Social Index Fund
Calvert Small Cap Value Fund
Calvert Mid Cap Value Fund
Balanced and Asset Allocation Funds
CSIF Balanced Portfolio
Calvert Conservative Allocation Fund
Calvert Moderate Allocation Fund
Calvert Aggressive Allocation Fund
printed on recycled paper using soy-based inks
<PAGE>
Item 2. Code of Ethics.
Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable.
Item 4. Principal Accountant Fees and Services.
Not applicable.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Schedule of Investments.
This Schedule is included as part of the report to shareholders filed under Item 1 of this Form.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
No material changes to the procedures by which shareholders may recommend nominees to the registrant's Board of Directors since last disclosure in response to this Item on registrant's Form N-CSR for the period ending September 30, 2005.
Item 11. Controls and Procedures.
(a) The principal executive and financial officers concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the 1940 Act) are effective, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rules 13a-15(b) or 15d-15(b) under the Exchange Act, as of a date within 90 days of the filing date of this report.
(b) There was no change in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant's second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.
Item 12. Exhibits.
(a)(1) Not applicable.
(a)(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2 under the Act (17 CFR 270.30a-2).
Attached hereto.
(a)(3) Not applicable.
(b) A certification for the registrant's Principal Executive Officer and Principal Financial Officer, as required by Rule 30a-2(b) under the Investment Company Act of 1940, is attached hereto. The certification furnished pursuant to this paragraph is not deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section. Such certification is not deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except to the extent that the registrant specifically incorporates it by reference.
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
CALVERT WORLD VALUES FUND, INC.
By: /s/ Barbara J. Krumsiek
Barbara J. Krumsiek
President -- Principal Executive Officer
Date: June 2, 2006
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
/s/ Barbara J. Krumsiek
Barbara J. Krumsiek
President -- Principal Executive Officer
Date: June 2, 2006
/s/ Ronald M. Wolfsheimer
Ronald M. Wolfsheimer
Treasurer -- Principal Financial Officer
Date: June 2, 2006
EX-99.CERT
Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
I, Barbara J. Krumsiek, certify that:
1. I have reviewed this report on Form N-CSR of Calvert World Values Fund, Inc.;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of trustees (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
Date: June 2, 2006 /s/ Barbara J. Krumsiek
Barbara J. Krumsiek
President -- Principal Executive Officer
EX-99.CERT
Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
I, Ronald M. Wolfsheimer, certify that:
1. I have reviewed this report on Form N-CSR of Calvert World Values Fund, Inc.;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of trustees (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
Date: June 2, 2006 /s/ Ronald M. Wolfsheimer
Ronald M. Wolfsheimer
Treasurer -- Principal Financial Officer
EX-99.906CERT
Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
In connection with the accompanying Form N-CSR of Calvert World Values Fund, Inc. (the "Company"), as filed with the Securities and Exchange Commission (the "Report"), I, Barbara J. Krumsiek, President of the Company, certify, pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:
- The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
- The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
Date: June 2, 2006 /s/ Barbara J. Krumsiek
Barbara J. Krumsiek
President -- Principal Executive Officer
A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Calvert World Values Fund, Inc. will be retained by Calvert World Values Fund, Inc. and furnished to the SEC or its staff upon request.
This certification is being furnished solely pursuant to 18 U.S.C. 1350 and is not being filed as part of the Report or as a separate disclosure document.
EX-99.906CERT
Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
In connection with the accompanying Form N-CSR of Calvert World Values Fund, Inc. (the "Company"), as filed with the Securities and Exchange Commission (the "Report"), I, Ronald M. Wolfsheimer, Treasurer of the Company, certify, pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:
- The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
- The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
Date: June 2, 2006 /s/ Ronald M. Wolfsheimer
Ronald M. Wolfsheimer
Treasurer -- Principal Financial Officer
A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Calvert World Values Fund, Inc. and will be retained by Calvert World Values Fund, Inc. and furnished to the SEC or its staff upon request.
This certification is being furnished solely pursuant to 18 U.S.C. 1350 and is not being filed as part of the Report or as a separate disclosure document.