- --------------------------------------------------------------------------------
Description of art work on front cover of report.
Solid blue box covering entire left hand side of cover with the name
WRIGHT INVESTORS'SERVICE in white at top.
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The Wright
Managed
Blue Chip
Investment
Funds
Wright Logo
Semi-Annual Report
June 30, 1998
<PAGE>
The Wright Managed Blue Chip Investment Funds
THE WRIGHT MANAGED BLUE CHIP INVESTMENT FUNDS CONSISTS OF FOUR EQUITY
FUNDS FROM THE WRIGHT MANAGED EQUITY TRUST, A MONEY MARKET FUND AND
FOUR OTHER FIXED INCOME FUNDS FROM THE WRIGHT MANAGED INCOME TRUST.
EACH OF THE NINE FUNDS HAVE DISTINCT INVESTMENT OBJECTIVES AND
POLICIES. THEY CAN BE USED SINGLY OR IN COMBINATION TO ACHIEVE
VIRTUALLY ANY OBJECTIVE. FURTHER, AS THEY ARE ALL "NO-LOAD" FUNDS (NO
COMMISSIONS OR SALES CHARGES), PORTFOLIO ALLOCATION STRATEGIES CAN BE
ALTERED AS DESIRED TO MEET CHANGING MARKET CONDITIONS OR CHANGING
REQUIREMENTS WITHOUT INCURRING ANY SALES CHARGES. EXCEPT AS NOTED,
EACH FUND OFFERS TWO CLASSES OF SHARES DESIGNATED AS INSTITUTIONAL
SHARES AND STANDARD SHARES.
APPROVED WRIGHT INVESTMENT LIST
Securities selected for equity portfolios are drawn from investment lists
prepared by Wright Investors' Service (Wright) known as The Approved Wright
Investment List (AWIL) The Approved Wright Junior Blue Chip List (AWJBCL) and
the International Approved Wright Investment List (International AWIL).
Companies are selected by Wright as having the highest investment quality among
those equity securities which are considered as "investment grade". The
corporations may be large or small, exchange traded or over-the-counter, and may
include those not currently paying dividends on their shares. Companies are, in
the opinion of Wright, soundly financed and have established records of earnings
profitability and equity growth. All have established investment acceptance and
active, liquid markets for their publicly owned shares.
FOUR EQUITY FUNDS
WRIGHT SELECTED BLUE CHIP EQUITIES FUND (WBC) seeks to enhance total investment
return of price appreciation plus income by providing active management of
equities of well-established companies meeting strict quality standards.
Equities selected are limited to those companies on the AWIL whose current
operations reflect defined, quantified characteristics which have been
determined to offer comparatively superior total investment returns over the
intermediate term. The process selects those companies from the AWIL, regardless
of size, based on Wright's evaluation of their outlook as described above.
Investments are equally weighted.
WRIGHT JUNIOR BLUE CHIP EQUITIES FUND (WJBC). This portfolio seeks to enhance
total investment return of price appreciation plus income by providing
management of equities of smaller companies still experiencing their rapid
growth period. Equity securities selected are limited to those companies on the
AWJBCL which consists of smaller companies than those on the AWIL but which meet
a higher standard of profitability and growth characteristics.
WRIGHT MAJOR BLUE CHIP EQUITIES FUND (WMBC) seeks to enhance total investment
return of price appreciation plus income by providing management of a broadly
diversified portfolio of equities of larger well-established companies meeting
strict quality standards. In selecting companies from the AWIL for this
portfolio, the Investment Committee of Wright selects, based on quantitative
formulae, those companies which are expected to do better over the intermediate
term. The quantitative formulae takes into consideration factors such as
over/under valuation and compatibility with current market trends. Investments
in the portfolio are equally weighted in the selected securities.
<PAGE>
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC). This is a broadly
diversified portfolio of equities of well-established, non-U.S. companies
meeting strict quality standards. The portfolio may buy common stocks traded on
the securities exchange of the country in which the company is based or it may
purchase American Depositary Receipts (ADR's) traded in the United States. The
portfolio is denominated in U.S. dollars and investors should understand that
fluctuations in foreign exchange rates may impact the value of their investment.
A MONEY MARKET FUND
WRIGHT U.S. TREASURY MONEY MARKET FUND (WTMM) seeks a high rate of current
income but with added safety that comes from limiting its investments to
securities of the U.S. Government and its agencies. There may be an added
advantage to investors that reside in states and municipalities that do not tax
dividend income from mutual funds investing exclusively in U.S. Government
securities. This Fund only offers Standard Shares.
FOUR FIXED-INCOME FUNDS
WRIGHT U.S. TREASURY NEAR TERM FUND (WNTB) (name changed to Wright U.S.
Government Near Term Fund on July 1, 1998) is a diversified portfolio
concentrating on bonds and other obligations of the U.S. Government and U.S.
Government Agencies with an average weighted maturity of less than five years.
This portfolio is designed to appeal to the investor seeking a high level of
income that is normally somewhat less variable and normally somewhat higher than
that available from short-term money market instruments and who is also tolerant
of modest fluctuation in capital (i.e. compared with somewhat greater
fluctuation likely with longer term fixed income securities). Dividends are
accrued daily and paid monthly.
WRIGHT U.S. TREASURY FUND (WUSTB) is invested in U.S. Treasury bills, notes and
bonds, which are guaranteed as to principal and interest by the full faith and
credit of the U.S. Government, and which are not expected to be taxable by
certain state or municipal governments. Maturities are relatively long.
Dividends are accrued daily and paid monthly.
WRIGHT TOTAL RETURN BOND FUND (WTRB) is a diversified portfolio of quality
government and corporate bonds and other debt securities of varying maturities
which, in the Adviser's opinion, will achieve the portfolio objective of best
total return, i.e. the best total of ordinary income plus capital appreciation.
Accordingly, investment selections and maturities may differ depending on the
particular phase of the interest rate cycle. Dividends are accrued daily and
paid monthly. This Fund only offers Standard Shares.
WRIGHT CURRENT INCOME FUND (WCIF) may be invested in a variety of securities and
may use a number of strategies to produce a high level of income with reasonable
stability of principal. Currently, this portfolio is primarily invested in
mortgage Participation Certificates issued by the Government National Mortgage
Association (GNMA). GNMA guarantees that the fund will receive timely principal
and interest payments. The Fund reinvests all principal payments. Dividends are
accrued daily and paid monthly.
<PAGE>
TABLE OF CONTENTS
================================================================================
INVESTMENT OBJECTIVES ...................... Inside Front Cover
LETTER TO SHAREHOLDERS ................................ 2
MANAGEMENT DISCUSSION.................................. 3
DIVIDEND DISTRIBUTIONS................................. 8
FINANCIAL STATEMENTS
----------------------------
WRIGHT MANAGED EQUITY TRUST
Statements of Assets and Liabilities............... 13
Statements of Operations........................... 15
Statements of Changes in Net Assets................ 16
Financial Highlights............................... 18
Notes to Financial Statements...................... 23
WRIGHT MANAGED INCOME TRUST
Statements of Assets and Liabilities............... 28
Statements of Operations........................... 30
Statements of Changes in Net Assets................ 32
Financial Highlights............................... 34
Notes to Financial Statements...................... 40
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
Statements of Assets and Liabilities............... 45
Statements of Operations........................... 47
Statements of Changes in Net Assets................ 49
Financial Highlights............................... 52
Notes to Financial Statements...................... 54
PORTFOLIOS
----------------------
Wright Major Blue Chip Equities Fund (WMBC)......... 58
Wright Total Return Bond Fund (WTRB)................ 60
Wright U.S. Treasury Money Market Fund (WTMM)....... 62
Wright Selected Blue Chip Equities Portfolio (WBC).. 63
Wright Junior Blue Chip Equities Portfolio (WJBC)... 65
Wright International Blue Chip Equities
Portfolio (WIBC).................................. 67
Wright U.S. Treasury Near Term Portfolio (WNTB)..... 70
Wright U.S. Treasury Portfolio (WUSTB).............. 71
Wright Current Income Portfolio (WCIF).............. 72
<PAGE>
LETTER TO SHAREHOLDERS
================================================================================
July 1998
Dear Shareholders:
The U.S. and European securities markets extended their winning streaks during
the first half of 1998. Stocks once again outdid expectations, with the S&P 500
registering its 13th and 14th straight quarterly advances and stock prices
hitting new highs in U.S. and Europe in June. Bonds in Europe and U.S. Treasury
bonds had respectable returns during the first half of 1998, as inflation
pressures were largely absent and the Asian financial crisis produced a "flight
to safety" in U.S. Treasuries.
The U.S. economy began its eighth year of expansion in April on a strong
footing, although some slowing was evident during the second quarter relative to
the robust first quarter. Considering the recessions being experienced in Asia,
this slowdown in the U.S. was not unexpected; in fact, the slowing trend was
welcome news for the bond market and the Federal Reserve. Some Fed officials are
fearful of higher inflation ahead, but the majority opted to leave interest
rates unchanged during the first half of 1998 and interest rates dropped
slightly along the entire yield curve.
The second quarter of 1998 was not the unqualified success for U.S. stocks that
the prior quarter had been. While the major stock market indexes registered
small gains in the second quarter, the period was actually a mixed one for the
U.S. stock market. Generally speaking, bigger-cap stocks advanced modestly while
smaller issues were retreating. The variance in performance among stock groups
between big and small, growth and value - was as great as it has been in ten
years, with the market bias working to the detriment of stocks outside the
hallowed ground of the S&P 500.
The stock market's recent preference for big, S&P 500-type stocks has pushed the
market P/E multiple up by 50% in two years, creating some big risks in these
stocks. The presumed "safety" of the big-name stocks at the top of the S&P 500
is more apparent than real, as their sky-high P/Es actually make them one of the
riskier sectors in the market today. Relative to bonds, stocks are overpriced
currently, with stock earnings yields below bond yields by the biggest margin
since the summer of 1987. The flip side of this is that bonds are quite
attractive relative to stocks. Bond yields are also attractive in relation to
the low rate of inflation and to rates of interest in other important bond
markets around the world.
The fundamental backdrop for the U.S. securities markets remains generally
favorable, with the economic expansion slowing in the direction of the Federal
Reserve's 2.5%-3% growth target and inflation and interest rates dropping.
Corporate profits are beginning to lose momentum, a fact that could become
problematic for stocks in the near term. The longer-term outlook for
high-quality securities is positive, and diversification in quality stocks
outside the U.S. continues to make sense to us. While the trip may be slow and
irregular, we expect bond yields to continue trending lower, generating
better-than-inflation returns in intermediate and longer-term fixed-income
securities.
As always, it should be understood that past performance does not guarantee
future results and that investment return and principal value will fluctuate so
that an investor's shares, when redeemed, may be worth more or less than their
original cost. Investing internationally entails additional risks, such as
currency fluctuations and potential political instability. The paragraphs below
discuss the various economic, political and market factors affecting the
investment performance of the Wright Equity and Fixed-Income Funds during the
first half of 1998 and prospects for the period ahead.
Sincerely,
/S/ Peter M. Donovan
Peter M. Donovan
President
<PAGE>
MANAGEMENT DISCUSSION
================================================================================
EQUITY FUNDS
- ----------------
THE U.S. BULL MARKET LOST SOME MOMENTUM DURING THE SECOND QUARTER OF 1998.
Stocks exhibited a split personality during the second quarter, with prices up
for big-cap stocks and lower for the mid- and small-caps. Stocks in Europe
performed slightly ahead of U.S. equities during the second quarter, while Japan
and other Pacific markets were weak. Asia's financial crisis is turning out to
be worse than many thought early in the year, and most Asian stock markets and
currencies have given back their first-quarter recoveries and then some.
EARLY IN JULY, THE MAJOR U.S. STOCK MARKET AVERAGES HAVE MOVED TO NEW HIGHS.
There are a number of positive factors that continue to support U.S. equities.
Although the Asian crisis is causing some slowdown in economic and profit
growth, the chance of a recession in the U.S. is limited; inflation is benign
and the trend in interest rates is downward. Demographic trends and a surge in
merger activity are providing strong cash flows into equities.
BUT THERE IS NO GETTING AROUND THE MARKET'S HISTORICALLY HIGH VALUATIONS. P/E
multiples are at the highest levels in postwar history. In terms of year-ahead
earnings, the 50 biggest S&P 500 stocks had a median P/E of 25 at midyear 1998
versus 17 for the other 450; S&P Growth stocks had a median P/E of 23 versus 16
for S&P Value stocks. The data suggests the development of a two-tier market.
Wright expects a correction in today's high P/E multiples that will hold down
investment returns in the near term. With many quality issues lagging the S&P
this year, there is room for some market sectors to post better-than-average
returns. Wright expects equity returns to stay ahead of inflation over
1998-2003.
<TABLE>
<CAPTION>
1998 1998 1997 1996 1995 1994 1993 1992 1991
Total Return Q2 6 Mos. Year Year Year Year Year Year Year
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Selected Blue Chips (WBC) -5.8% 4.4% 32.7% 18.6% 30.3% -3.5% 2.1% 4.7% 36.0%
Major Blue Chips (WMBC) 0.8% 13.9% 33.9% 17.6% 29.0% -0.7% 1.0% 8.0% 38.9%
Junior Blue Chips (WJBC) -6.8% 0.7% 28.9% 17.5% 20.5% -2.7% 7.9% 3.3% 37.0%
Int'l Blue Chips (WIBC)
Standard Shares -2.4% 9.1% 1.5% 20.7% 13.6% -1.6% 28.2% -3.9% 17.2%
Institutional Shares -1.4% 10.3% (6.37%) - - - - - -
</TABLE>
WRIGHT SELECTED BLUE CHIP EQUITIES FUND
The Wright Selected Blue Chip Fund (WBC) had a total return of 4.4% during the
first half of 1998, compared to 17.7% for the S&P 500. With big-cap stocks in
favor, the WBC's return shortfall in the first half of 1998 relative to the S&P
500 was almost entirely due the smaller size of its holdings. More than 95% of
the S&P 500's weight consists of companies with market capitalization greater
then $4 billion, with 64% larger than $25 billion. In contrast, less than 30% of
WBC funds are in stocks with market caps above $4 billion; the bulk of WBC
holdings are in the range of $1 to $4 billion. In particular, underweighting in
large-cap drug stocks and electronics companies have hurt the WBC this year;
underweighting in energy and tobacco issues has been a plus.
The high-quality stocks in the WBC possess superior financial strength and
profitability compared with the S&P 500; they also have better growth prospects.
At some time, probably in the not too distant future, investors will realize
that the S&P 500's excessive P/E multiple - 29 times current earnings at
mid-year - is not warranted by the fundamentals, and that more reasonably valued
issues, such as those in the WBC, which averaged a P/E multiple of 17 at June
30, stand to benefit.
<PAGE>
WRIGHT JUNIOR BLUE CHIP EQUITIES FUND
With smaller stocks lagging behind big-cap issues in the first half of 1998, the
Wright Junior Blue Chip Fund (WJBC) had a return of 0.7% for the period, vs 5.7%
for the S&P 600 SmallCap index. About 60% of WJBC assets were in issues with
market caps under $500 million, compared to less than 20% for the S&P SmallCaps.
The WJBC's relative return was also hurt by the underperformance of its chemical
and machinery holdings; good results in its recreation and non-bank financial
stocks were an offset to the plus side.
The WJBC is positioned to perform relatively well in the P/E correction that
Wright believes is inevitable for the U.S. stock market. The average P/E for
WJBC holdings is 14 times expected next 12 months' earnings, compared to 26
times for the S&P 500.
WRIGHT MAJOR BLUE CHIP EQUITIES FUND
The Wright Major Blue Chip Fund (WMBC), invests in the larger issues on The
Approved Wright Investment List. It achieved a 13.9% investment return in the
first half of 1998, compared to 17.7% for the S&P 500. Although the WMBC
benefitted from the relatively large market cap of its stocks, its holdings are
still smaller than the S&P 500 average, and that hampered results in the first
half of 1998. About 24% of the WMBC's assets are invested in stocks with market
caps larger than $25 billion, while 64% of the S&P 500 exceeds $25 billion.
Underweighting in drug stocks and overweighting in machinery issues have also
hurt the fund this year.
The dominance of size over fundamentals in determining stock market favorites
cannot go on forever, and the WMBC is in a good position to benefit when the
wind changes. WMBC stocks averaged a P/E multiple of 18 times year-ahead
earnings at mid-year 1998, compared with 26 times for the S&P 500, even though
WMBC companies' earnings are expected to grow faster than the S&P 500's over the
coming five years.
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND
The Wright International Blue Chip Fund (WIBC) Standard and Institutional Shares
had a 9.1% and 10.3% investment return, respectively, compared to 13.6% for the
FT/S&P World ex U.S. Composite. Over the last 12 months, WIBC earned 4.0% vs
2.8% for the FT/S&P World ex U.S. index.
The WIBC's performance relative to the FT/S&P World ex U.S. index has recently
been negatively affected by weakness in its U.K. holdings in response to a
tighter monetary policy; by an underweighted position in German banks relative
to the benchmark; and by weakness in the Mexican peso. These factors offset the
benefits of a large position in Finland, the world's strongest market this year;
a solid performance by WIBC's Canadian holdings; and underweighting in the weak
Japanese market.
With Asia's economic problems far from over, equities and currency markets in
this region are likely to be volatile for some time to come. In Europe, where
many markets are at record highs, signs of slowing economic growth may hold
stock price gains in coming months below recent rates. Nevertheless, overall
fundamentals, including low inflation, a downward trend in interest rates in
most countries and the efficiencies that will eventually result from economic
convergence, are positive for financial assets.
<PAGE>
FIXED-INCOME FUNDS
- ---------------------
SO FAR IN 1998, U.S. BONDS HAVE GENERALLY PROVIDED POSITIVE INVESTMENT RETURNS.
Treasury bond yields fell 25-30 basis points on average over the length of the
yield curve during the first half of 1998. Declines ranged from ten basis points
for one-year maturities to 30 basis points for the 30-year Treasury. After
spending most of 1998's first half in a tight 5.8% to 6.0% range, in early June
the yield on the 30-year T-bond dropped down into the 5.6% to 5.7% range, levels
not seen with any consistency in almost 30 years. With the short end of the
yield curve influenced by the Federal Reserve's setting of the federal funds
rate at 5.5%, the mid-year yield curve was virtually flat; the spread between
two years and 30 years was just 15 basis points.
THE BOND MARKET DREW SOME OF ITS STRENGTH DURING THE FIRST HALF OF 1998 FROM THE
WEAKNESS IN ASIA. As economic conditions in Asia deteriorated, currency markets
there weakened and stocks gave back their first-quarter recoveries. Increasing
unease about conditions in the Pacific Rim region produced "flight to safety"
flows into U.S. Treasury securities. Continuing benign inflation in the U.S.
despite strong economic growth - also helped support the U.S. bond market.
THE FEDERAL RESERVE LEFT INTEREST RATES UNCHANGED DURING THE FIRST HALF. IN
MARCH, THE FOMC ADOPTED A BIAS TOWARD TIGHTENING. But that bias has yet to be
acted on, and Wright believes that in light of events on the world stage, the
Fed is likely to refrain from raising rates at least through the end of this
year. Higher U.S. interest rates would only increase the pressure on weak
currencies and economies. Chairman Greenspan and other Fed officials have also
warned that the worst effects of the Asian crisis on U.S.
business are yet to come.
WRIGHT BELIEVES THAT THE BULL MARKET IN BONDS HAS FURTHER TO GO. U.S. economic
growth, while still robust, has begun to slow; competitive pressures, with a
helping hand from Asia's recession, are keeping inflation under control
globally. While the U.S. bond market may be volatile in the coming months as
opinions on Asia's fortunes shift, the underlying trend in yields should be
downward. With the persistence of low inflation, resistance to 5% long-term bond
yields should gradually fade.
<TABLE>
<CAPTION>
1998 1998 1997 1996 1995 1994 1993 1992 1991
Total Return Q2 6 Mos. Year Year Year Year Year Year Year
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
U.S. Treasury Money Mkt (WTMM) 1.2% 2.4% 4.8% 4.8% 5.3% 3.6% 2.5% 3.3% n.a.
U.S. Treasury Near-Term Bonds (WNTB) 1.3% 2.6% 5.9% 3.9% 11.9% -3.1% 8.0% 6.3% 13.1%
U.S. Treasury Bonds (WUSTB) 2.5% 3.9% 9.1% -1.2% 28.2% -8.7% 15.9% 7.1% 17.6%
Total Return Bonds (WTRB) 2.4% 3.9% 9.2% 0.9% 22.0% -6.6% 11.0% 7.1% 15.4%
Current Income (WCIF)
Standard Shares 1.7% 3.2% 8.6% 4.3% 17.5% -3.3% 6.6% 6.7% 15.3%
Institutional Shares 1.7% 3.1% 4.4% - - - - - -
</TABLE>
<PAGE>
WRIGHT U.S. TREASURY MONEY MARKET FUND
The Wright U.S. Treasury Money Market Fund (WTMM) earned a total investment
return of 2.4% in the first half of 1998, in line with the average return on
Treasury money market funds and slightly behind the 2.5% return on U.S. 90-day
T-bills. At June 30, the WTMM had an average maturity of 83 days. Federal
Reserve monetary policy was unchanged during the first half of 1998, and Wright
believes that the Fed is unlikely to raise rates at least for the balance of
this year. Returns on T-bills are therefore likely to stay in the range of a 5%
annual rate in 1998.
WRIGHT U.S. TREASURY NEAR TERM FUND
The Wright U.S. Treasury Near-Term Fund (name changed to Wright U.S. Treasury
Near-Term Fund on July 1, 1998) returned 2.6% in the first half of 1998,
compared with 2.5% for T-bills and 2.8% for the Morningstar average of near-term
government funds. During the period, the holdings of the Wright U.S. Treasury
Near-Term Fund (WNTB) were almost entirely U.S. Treasury issues; starting July
1, U.S. government agency securities will be included in the WNTB, a shift that
is expected to enhance the WNTB's return while keeping its risk low.
The WNTB's average annual return of 6.9% over the last ten years compares
favorably to 5.4% for T-bills and 6.7% for the Morningstar Government near-term
bond fund average. At June 30, the WNTB's average yield to maturity was 5.5%,
down slightly from 5.6% three months earlier; over the quarter, the Fund's
average maturity increased to 1.9 years from 1.8, while duration was unchanged
at 1.7 years.
WRIGHT U.S. TREASURY FUND
The Wright U.S. Treasury Fund (WUSTB), which is invested entirely in U.S.
Treasury issues, earned a total investment return of 3.9% for the first half of
1998, compared to 3.5% for the Lipper bond fund average and 4.2% for the Lehman
government/corporate composite. The WUSTB's 9.3% annual rate of return for the
last ten years compares favorably with the Lipper average's 7.9% and the Lehman
composite's 9.1%. During the second quarter, the WUSTB's average yield to
maturity edged down to 5.7% from 5.8% at March 31. At June 30, the Fund's
duration was 5.9 years compared with 6.1 three months earlier.
WRIGHT TOTAL RETURN BOND FUND
The Wright Total Return Bond Fund (WTRB) earned an investment return of 3.9% in
the first half of 1998; this compares favorably with the 3.5% return of the
Lipper bond fund average for the quarter, but trails the Lehman
government/corporate composite's 4.2%. The WTRB's sector allocation as of June
30 was 52% U.S. Treasuries, 27% corporates, 13% government agencies, 7%
mortgage-backed securities and 1% cash and equivalents, essentially unchanged
from the March 31 allocation. Treasury issues generally had better returns than
other sectors in the first half of 1998.
During the second quarter, the WTRB's average yield to maturity eased slightly
to 5.9% from 6.0% at March 31. The Fund's average maturity at June 30 was 8.7
years (duration 6.1) compared with 8.6 (6.0) three months earlier.
<PAGE>
WRIGHT CURRENT INCOME FUND
The Wright Current Income Fund (WCIF) is invested in Ginnie Mae securities
(mortgage-based securities backed by the U.S. government); WCIF Standard and
Institutional Shares earned a 3.2% and 3.1% total return, respectively, in the
first half of 1998, in line with the results of the Morningstar government
mortgage fund average. After keeping pace with Treasury bonds in the first
quarter, mortgage-based securities lagged somewhat in the second quarter as a
decline in mortgage rates resulted in a pick-up in prepayments. The WCIF's
current allocation, which emphasizes lower-coupon issues (at June 30, more than
50% of WCIF holdings had coupons of 7% or lower), should mitigate the impact of
prepayments going forward.
WCIF's 8.4% average annual return over the last ten years tops the Morningstar
average's 7.8% annual rate for the same period. At June 30, the WCIF's estimated
average duration was 4.0 years, down from 4.3 at March 31. The Fund's indicated
annual yield at the end of the second quarter was 6.1%, triple the rate of
inflation.
<PAGE>
DIVIDEND DISTRIBUTIONS
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
N.A.V. Distri- Distri- 12 Month 5 Year 10 Year Cum.
Period Per bution bution Shares Invstmnt Invstmnt Invstmnt Invstmnt
Ending Share $ P/S in Shares Owned Value Return Return Return Return
(Annualized) (Annualized)(Annualized)
- --------------------------------------------------------------------------------------------------------------------------------
THE EQUITY TRUST -- WRIGHT SELECTED BLUE CHIP EQUITIES FUND (WBC)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1/4/83 $10.00 100.00 $1,000.00
Dec. 97 19.20 2.225 0.119303 370.80 7,119.36 32.70% 15.09% 15.44% 13.99%
Jan.98 19.09 370.80 7,078.57 29.53% 15.23% 14.72% 13.86%
Feb.98 20.49 370.80 7,597.69 36.01% 16.87% 14.79% 14.32%
Mar.98 21.25 0.025 0.001172 371.23 7,888.64 45.10% 17.38% 15.22% 14.52%
Apr.98 21.27 371.23 7,896.06 40.46% 18.22% 15.17% 14.44%
May 98 20.40 371.23 7,573.09 25.99% 16.62% 14.77% 14.05%
Jun.98 20.00 0.020 0.001009 371.60 7,432.00 19.76% 16.63% 13.86% 13.83%
- -------------------------------------------------------------------------------------------------------------------------------
THE EQUITY TRUST -- WRIGHT JUNIOR BLUE CHIP EQUITIES FUND (WJBC)
1/15/85 $10.00 100.00 $1,000.00
Dec. 97 10.48 0.880 0.085437 394.06 4,129.75 28.92% 13.90% 12.43% 11.57%
Jan.98 10.46 394.06 4,121.87 26.68% 13.77% 12.21% 11.47%
Feb.98 11.09 394.06 4,370.12 31.96% 15.21% 11.87% 11.90%
Mar.98 11.32 394.06 4,460.76 37.33% 15.33% 11.69% 11.99%
Apr.98 11.20 394.06 4,413.47 34.97% 15.88% 11.63% 11.82%
May 98 10.84 394.06 4,271.61 20.23% 14.38% 11.49% 11.47%
Jun.98 10.55 394.06 4,157.33 12.54% 14.24% 10.54% 11.17%
- --------------------------------------------------------------------------------------------------------------------------------
THE EQUITY TRUST -- WRIGHT MAJOR BLUE CHIP EQUITIES FUND (WMBC)
7/22/85 $10.00 100.00 $1,000.00
Dec. 97 12.02 1.955 0.165818 474.68 5,705.65 33.86% 15.29% 15.59% 15.02%
Jan.98 12.09 474.68 5,738.88 30.15% 15.66% 15.17% 14.97%
Feb.98 13.05 474.68 6,194.57 37.91% 17.53% 15.29% 15.57%
Mar.98 13.56 0.015 0.001107 475.20 6,443.71 48.63% 18.20% 15.78% 15.81%
Apr.98 13.65 475.20 6,486.48 42.17% 19.17% 15.91% 15.76%
May 98 13.44 475.20 6,386.69 30.57% 18.22% 15.80% 15.51%
Jun.98 13.66 0.010 0.000740 475.55 6,496.01 27.01% 19.08% 15.36% 15.56%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
N.A.V. Distri- Distri- 12 Month 5 Year 10 Year Cum.
Period Per bution bution Shares Invstmnt Invstmnt Invstmnt Invstmnt
Ending Share $ P/S in Shares Owned Value Return Return Return Return
(Annualized) (Annualized)(Annualized)
- ---------------------------------------------------------------------------------------------------------------------------------
THE EQUITY TRUST -- WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC)
Standard Shares
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/14/89 $10.00 100.00 $1,000.00
Dec. 97 16.02 0.370 0.023359 120.04 1,923.04 1.53% 11.93% -- 8.20%
Jan.98 16.00 120.04 1,920.64 3.46% 12.82% 11.94% 8.10%
Feb.98 17.11 120.04 2,053.88 9.10% 14.36% 12.88% 8.88%
Mar.98 17.84 0.064 0.003563 120.46 2,149.01 15.01% 14.06% 12.88% 9.37%
Apr.98 17.92 120.46 2,158.64 16.40% 13.20% 12.21% 9.33%
May 98 17.89 120.46 2,155.03 11.48% 12.39% 11.94% 9.22%
Jun.98 17.41 120.46 2,097.21 4.01% 11.00% 12.07% 8.79%
- --------------------------------------------------------------------------------------------------------------------------------
THE EQUITY TRUST -- WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC)
Institutional Shares
7/06/97 $10.00 100.00 $1,000.00
Dec. 97 9.13 0.230 0.025471 102.55 936.28 -- -- -- -6.37%*
Jan.98 9.12 102.55 935.26 -- -- -- -6.48%*
Feb.98 9.76 102.55 1,000.89 -- -- -- 0.09%*
Mar.98 10.15 0.064 0.006262 103.19 1,047.38 -- -- -- 4.74%*
Apr.98 10.20 103.19 1,052.54 -- -- -- 5.25%*
May 98 10.18 103.19 1,050.47 -- -- -- 5.05%*
Jun.98 10.01 103.19 1,032.93 -- -- -- 3.29%*
- --------------------------------------------------------------------------------------------------------------------------------
*: Investment return from the inception, July 7, 1997 to June 30, 1998.
</TABLE>
<PAGE>
THE INCOME TRUST -- WRIGHT U.S. TREASURY MONEY MARKET FUND (WTMM)
<TABLE>
<CAPTION>
MONTHLY CUMULATIVE ANNUALIZED INVESTMENT RETURN
MONTH NET INCOME RETURN ______________________________________
ENDING PER SHARE PER SHARE (a) 1 Month 3 Month Cumulative
- --------------------------------------------------------------------------------------------------------------------------
$1,000.00
<S> <C> <C> <C> <C> <C>
Jan. 31 $0.004047616 1,004.05 4.77% -- 4.77%
Feb. 28 0.003642645 1,007.71 4.75% -- 4.77%
Mar. 31 0.004043263 1,011.78 4.76% 4.78% 4.78%
Apr. 30 0.003915946 1,015.74 4.76% 4.78% 4.79%
May 31 0.003968376 1,019.77 4.67% 4.75% 4.78%
Jun. 30 0.003829436 1,023.68 4.66% 4.72% 4.77%
----------
Total $0.023447282
(a): Assumes reinvestment of monthly dividends.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
N.A.V. Distri- Distri- 12 Month 5 Year 10 Year Cum.
Period Per bution bution Shares Invstmnt Invstmnt Invstmnt Invstmnt
Ending Share $ P/S in Shares Owned Value Return Return Return Return
(Annualized) (Annualized)(Annualized)
- --------------------------------------------------------------------------------------------------------------------------------
THE INCOME TRUST -- WRIGHT U.S. GOVERNMENT NEAR TERM FUND (WNTB)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
7/25/83 $10.00 100.000 $1,000.00
12/97 10.24 0.049720 0.004855 298.090 3,052.44 5.93% 5.21% 7.02% 8.04%
1/98 10.29 0.048983 0.004760 299.509 3,081.95 6.53% 5.01% 6.88% 8.06%
2/98 10.24 0.043842 0.004281 300.792 3,080.11 6.20% 4.68% 6.76% 8.01%
3/98 10.23 0.049929 0.004881 302.260 3,092.12 6.83% 4.67% 6.84% 7.99%
4/98 10.22 0.047809 0.004678 303.674 3,103.55 6.40% 4.59% 6.90% 7.97%
5/98 10.22 0.048178 0.004714 305.105 3,118.17 6.33% 4.75% 6.99% 7.96%
6/98 10.22 0.047654 0.004663 306.528 3,132.72 6.11% 4.54% 6.90% 7.95%
---------
Total $0.286395
- ---------------------------------------------------------------------------------------------------------------------------------
THE INCOME TRUST -- WRIGHT U.S. TREASURY FUND (WUSTB)
7/25/83 $10.00 100.000 $1,000.00
12/97 13.95 0.055733 0.003995 299.136 4,172.95 9.09% 7.90% 9.37% 10.40%
1/98 14.13 0.059985 0.004245 300.389 4,244.50 10.94% 7.64% 9.02% 10.47%
2/98 14.00 0.054531 0.003895 301.559 4,221.83 10.46% 6.87% 8.83% 10.37%
3/98 13.96 0.064041 0.004587 302.943 4,229.08 12.30% 6.85% 9.14% 10.32%
4/98 13.95 0.062491 0.004480 304.300 4,224.98 10.50% 6.81% 9.31% 10.29%
5/98 14.02 0.063987 0.004564 305.689 4,285.76 11.23% 6.94% 9.58% 10.30%
6/98 14.12 0.062635 0.004436 307.045 4,335.48 11.19% 6.34% 9.33% 10.32%
---------
Total $0.367670
- --------------------------------------------------------------------------------------------------------------------------------
THE INCOME TRUST -- WRIGHT TOTAL RETURN BOND FUND (WTRB)
7/25/83 $10.00 100.000 $1,000.00
12/97 12.93 0.059800 0.004625 296.133 3,829.00 9.25% 6.88% 8.26% 9.75%
1/98 13.09 0.059616 0.004554 297.481 3,894.03 11.11% 6.72% 7.98% 9.81%
2/98 12.98 0.055921 0.004308 298.763 3,877.94 10.80% 6.15% 7.81% 9.73%
3/98 12.92 0.092246 0.007140 300.897 3,887.59 12.73% 6.11% 8.02% 9.69%
4/98 12.91 0.057672 0.004467 302.241 3,901.94 11.35% 6.03% 8.17% 9.66%
5/98 12.98 0.058086 0.004475 303.594 3,940.65 11.48% 6.28% 8.40% 9.67%
6/98 13.05 0.058115 0.004453 304.946 3,979.55 11.35% 5.98% 8.22% 9.69%
---------
Total $0.381655
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
N.A.V. Distri- Distri- 12 Month 5 Year 10 Year Cum.
Period Per bution bution Shares Invstmnt Invstmnt Invstmnt Invstmnt
Ending Share $ P/S in Shares Owned Value Return Return Return Return
(Annualized) (Annualized)(Annualized)
- -------------------------------------------------------------------------------------------------------------------------------
THE INCOME TRUST -- WRIGHT CURRENT INCOME FUND (WCIF) - Standard Shares
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
4/14/87 $10.00 100.000 $1,000.00
12/97 10.63 0.055488 0.005220 225.288 2,394.81 8.56% 6.53% 8.69% 8.49%
1/98 10.68 0.054913 0.005142 226.447 2,418.45 9.03% 6.36% 8.36% 8.52%
2/98 10.64 0.055137 0.005182 227.620 2,421.88 8.74% 6.20% 8.23% 8.47%
3/98 10.62 0.053992 0.005084 228.777 2,429.61 10.48% 6.16% 8.38% 8.43%
4/98 10.63 0.053803 0.005061 229.935 2,444.21 9.50% 6.20% 8.49% 8.43%
5/98 10.66 0.053611 0.005029 231.092 2,463.44 9.28% 6.25% 8.66% 8.44%
6/98 10.64 0.053848 0.005061 232.261 2,471.26 8.31% 6.10% 8.42% 8.40%
---------
Total $0.325305
- --------------------------------------------------------------------------------------------------------------------------------
THE INCOME TRUST -- WRIGHT CURRENT INCOME FUND (WCIF) - Institutional Shares
7/06/97 $10.00 100.000 $1,000.00
12/97 10.12 0.055263 0.005461 103.163 1,044.01 -- -- -- 4.40%*
1/98 10.16 0.053890 0.005304 103.710 1,053.69 -- -- -- 5.37%*
2/98 10.12 0.053892 0.005325 104.263 1,055.14 -- -- -- 5.51%*
3/98 10.10 0.052574 0.005205 104.805 1,058.53 -- -- -- 5.85%*
4/98 10.11 0.052364 0.005179 105.348 1,065.07 -- -- -- 6.51%*
5/98 10.14 0.052252 0.005153 105.891 1,073.73 -- -- -- 7.37%*
6/98 10.11 0.052439 0.005187 106.440 1,076.11 -- -- -- 7.61%*
---------
Total $0.317411
- ------------------------------------------------------------------------------------------------------------------------------
*: Investment return from the inception, July 7, 1997 to June 30, 1998.
</TABLE>
<PAGE>
WRIGHT MANAGED EQUITY TRUST
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 1998 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Wright Selected Wright Junior Wright Major
Blue Chip Blue Chip Blue Chip
Equities Fund Equities Fund Equities Fund+
(WBC) (WJBC) (WMBC)
- ----------------------------------------------------------------------------------------------------------------------------
ASSETS:
Investments -
<S> <C> <C> <C>
Identified cost............................... $ - $ - $ 19,914,450
Unrealized appreciation....................... - - 6,853,990
Investments in Portfolio, at value (identified cost,
$208,938,699 and $34,027,309, respectively,
for WBC and WJBC)........................... 273,286,573 36,281,458 -
------------ ------------ ------------
Total investments, at value (Note 1A)......... $273,286,573 $ 36,281,458 $ 26,768,440
Cash.......................................... - - 4,376
Receivable for Fund shares sold............... 480,999 39,441 2,913
Dividend and interest receivable.............. - - 25,007
Receivable from Investment Adviser............ - - 11,200
------------ ------------ ------------
Total Assets............................. $273,767,572 $ 36,320,899 $ 26,811,936
------------ ------------ ------------
LIABILITIES:
Payable for Fund shares reacquired............ $ 48,848 $ 24,048 $ 19,856
Payable for investments purchased............. - - 414,400
Distributions payable......................... 72,336 - 2,027
Accrued expenses and other liabilities........ 13,099 5,967 10,912
------------ ------------ ------------
Total Liabilities......................... $ 134,283 $ 30,015 $ 447,195
------------ ------------ ------------
NET ASSETS....................................... $273,633,289 $ 36,290,884 $ 26,364,741
============= ============= =============
NET ASSETS CONSIST OF:
Proceeds from sales of shares (including the market value of securities
received in exchange for Fund shares and shares issued to shareholders in
payment of distributions declared), less cost
of shares reacquired........................ $184,888,574 $ 32,782,146 $ 16,167,116
Accumulated undistributed net realized gain
on investments and foreign currency (computed
on the basis of identified cost)............ 23,590,636 1,642,530 3,532,642
Unrealized appreciation of investments and trans-
lation of assets and liabilities in foreign currency
(computed on the basis of identified cost).. 64,347,874 2,254,149 6,853,990
Undistributed (distributions in excess of) net
investment income........................... 806,205 (387,941) (189,007)
------------ ------------ ------------
Net assets applicable to outstanding shares. $273,633,289 $ 36,290,884 $ 26,364,741
============= ============= =============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING................................. 13,680,350 3,440,262 1,929,711
============= ============= =============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST...................... $20.00 $10.55 $13.66
============= ============= =============
+ The Wright Major Blue Chip Equities Fund does not invest in a corresponding
master portfolio.
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT MANAGED EQUITY TRUST
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1998 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Wright International
Blue Chip
Equities Fund
(WIBC)
- ----------------------------------------------------------------------------------------------------------
ASSETS:
Investments -
<S> <C>
Investment in Portfolio, at value
(identified cost, $215,764,026) (Note 1A) ...................... $285,668,797
Receivable for Fund shares sold..................................... 90,927
------------
Total Assets.................................................... $ 285,759,724
------------
LIABILITIES:
Payable for Fund shares reacquired.................................. $ 1,847,496
Distributions payable............................................... 3,446
Accrued expenses and other liabilities.............................. 20,434
------------
Total Liabilities............................................... $ 1,871,376
------------
NET ASSETS............................................................. $ 283,888,348
==============
NET ASSETS CONSIST OF:
Proceeds from sales of shares (including the market value of securities
received in exchange for Fund shares and shares issued to shareholders in
payment of distributions declared), less cost
of shares reacquired.............................................. $ 208,790,433
Accumulated undistributed net realized gain on
investments and foreign currency (computed
on the basis of identified cost).................................. 5,853,153
Unrealized appreciation of investments and trans-
lation of assets and liabilities in foreign currency
(computed on the basis of identified cost)........................ 69,904,771
Distributions in excess of net investment income.................... (660,009)
------------
Net assets applicable to outstanding shares....................... $ 283,888,348
=============
Computation of net asset value, offering and redemption price per share:
Standard shares:
Net assets...................................................... $ 234,373,324
=============
Shares of beneficial interest outstanding....................... 13,462,990
=============
Net asset value, offering price, and redemption price per share
of beneficial interest........................................ $ 17.41
=============
Institutional shares:
Net assets...................................................... $ 49,515,024
=============
Shares of beneficial interest outstanding....................... 4,947,121
=============
Net asset value, offering price, and redemption price per share
of beneficial interest........................................ $ 10.01
=============
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT MANAGED EQUITY TRUST
STATEMENTS OF OPERATIONS
For the Six Months Ended June 30, 1998 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Wright Selected Wright Junior Wright Major Wright International
Blue Chip Blue Chip Blue Chip Blue Chip
Equities Fund Equities Fund Equities Fund+ Equities Fund
(WBC) (WJBC) (WMBC) (WIBC)
- ------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1C):
Income -
<S> <C> <C> <C> <C>
Dividend income................................. $ - $ - $ 198,435 $ -
Interest income................................. - - 17,909 -
Dividend income allocated from Portfolio........ 1,887,029 188,403 - 3,403,229
Interest income allocated from Portfolio........ 107,398 20,906 - 216,546
Less: Foreign taxes from Portfolio.............. - - - (377,160)
Other Income.................................... 13,721 - - -
Expenses allocated from Portfolio............... (1,047,937) (154,995) - (1,405,991)
------------ ------------ ------------ ------------
Investment income.............................. $ 960,211 $ 54,314 $ 216,344 $ 1,836,624
------------ ------------ ------------ ------------
Expenses -
Investment Adviser fee (Note 2)................. $ - $ - $ 66,225 $ -
Administrator fee (Note 2)...................... 39,621 8,862 29,432 39,865
Compensation of Trustees not affiliated with the
Investment Adviser or Administrator............ 2,121 2,372 1,742 2,258
Custodian fee (Note 1D)......................... 25,723 7,504 14,624 20,012
Distribution expenses-Standard shares (Note 3).. 341,353 45,697 36,795 287,503
Transfer and dividend disbursing agent fees-
Standard shares........................... 27,984 6,162 2,565 36,616
Transfer and dividend disbursing agent fees-
Institutional shares ..................... - - - 6,092
Printing........................................ 426 6,963 2,706 7,115
Audit services.................................. 12,900 9,500 27,600 12,900
Legal services.................................. 2,207 865 2,207 2,207
Registration costs.............................. 16,125 14,083 14,470 13,736
Miscellaneous................................... 2,423 686 9,137 3,185
------------ ------------ ------------ ------------
Total expenses................................. $ 470,883 $ 102,694 $ 207,503 $ 431,489
------------ ------------ ------------ ------------
Deduct -
Preliminary reduction of Investment Adviser fee
(Note 2)................................. $ - $ - $ 11,200 $ -
Preliminary reduction of distribution expenses
by Principal Underwriter (Note 2) ....... - 45,697 36,795 -
Reduction of Custodian fee (Note 1D)............ - - 3,410 -
------------ ------------ ------------ ------------
Total deductions............................... $ - $ 45,697 $ 51,405 $ -
------------ ------------ ------------ ------------
Net expenses................................. $ 470,883 $ 56,997 $ 156,098 $ 431,489
------------ ------------ ------------ ------------
Net investment income (loss)............... $ 489,328 $ (2,683) $ 60,246 $ 1,405,135
------------ ------------ ------------ ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investment and foreign currency
transactions (identified cost basis)............ $ - $ - $ 3,114,679 $ -
Net realized gain on investment and foreign currency
transactions from Portfolio (identified cost basis) 22,714,499 1,393,586 - 5,866,057
------------ ------------ ------------ ------------
Net realized gain on investments................. $ 22,714,499 $ 1,393,586 $ 3,114,679 $ 5,866,057
------------ ------------ ------------ ------------
Change in unrealized appreciation of investments and
translation of assets and liabilities
in foreign currencies......................... $ - $ - $ 615,812 $ -
Change in unrealized appreciation (depreciation)
of investments and translation of assets and
liabilities in foreign currencies from Portfolio (11,602,230) (1,233,168) - 16,876,578
------------ ------------ ------------ ------------
Net change in unrealized appreciation (depreciation)
of investments ................................. $ (11,602,230) $ (1,233,168) $ 615,812 $ 16,876,578
------------ ------------ ------------ ------------
Net realized and unrealized gain on investments.. $ 11,112,269 $ 160,418 $ 3,730,491 $ 22,742,635
------------ ------------ ------------ ------------
Net increase in net assets from operations..... $ 11,601,597 $ 157,735 $ 3,790,737 $ 24,147,770
============= ============= ============= =============
+ The Wright Major Blue Chip Equities Fund does not invest in a corresponding
master portfolio.
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT MANAGED EQUITY TRUST
STATEMENTS OF CHANGES IN NET ASSETS
================================================================================
<TABLE>
<CAPTION>
Wright Selected Wright Junior
Blue Chip Blue Chip
Equities Fund Equities Fund
(WBC) (WJBC)
Year Ended Dec. 31 Year Ended Dec. 31
-----------------------------------------------------------
1998(1) 1997 1998(1) 1997
- ------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From operations -
<S> <C> <C> <C> <C>
Net investment income (loss)........................... $ 489,328 $ 1,731,669 $ (2,683) $ 63,900
Net realized gain on investments....................... 22,714,499 27,879,423 1,393,586 2,787,813
Change in unrealized appreciation (depreciation)
of investments....................................... (11,602,230) 35,733,719 (1,233,168) 547,419
------------ ------------ ------------ ------------
Net increase in net assets
resulting from operations......................... $ 11,601,597 $ 65,344,811 $ 157,735 $ 3,399,132
------------ ------------ ------------ ------------
Undistributed net investment income included in
price of shares sold and redeemed (Note 1F)............ $ (13) $ (21,080) $ - $ -
------------ ------------ ------------ ------------
Distributions to shareholders (Note 1G) -
From net investment income............................. $ (610,997) $ (1,728,176) $ - $ (56,986)
From net realized gain................................. - (43,658,676) - (2,548,114)
------------ ------------ ------------ ------------
Total distributions.................................. $ (610,997) $ (45,386,852) $ - $ (2,605,100)
------------ ------------ ------------ ------------
Net increase in net assets from Fund
share transactions (Note 4)............................ $ 3,231,834 $ 31,308,408 $ 2,643,415 $ 18,667,002
------------ ------------ ------------ ------------
Net increase in net assets............................... $ 14,222,421 $ 51,245,287 $ 2,801,150 $ 19,461,034
NET ASSETS:
At beginning of period................................... 259,410,868 208,165,581 33,489,734 14,028,700
------------ ------------ ------------ ------------
At end of period......................................... $273,633,289 $ 259,410,868 $ 36,290,884 $ 33,489,734
============= ============= ============= =============
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF)
NET INVESTMENT INCOME INCLUDED IN NET
ASSETS AT END OF PERIOD.................................. $ 806,205 $ 927,887 $ (387,941) $ (385,258)
============= ============= ============= =============
(1) For the six months ended June 30,1998 (unaudited).
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT MANAGED EQUITY TRUST
STATEMENTS OF CHANGES IN NET ASSETS
================================================================================
<TABLE>
<CAPTION>
Wright Major Wright International
Blue Chip Blue Chip
Equities Fund+ Equities Fund
(WMBC) (WIBC)
Year Ended Dec. 31 Year Ended Dec. 31
--------------------------------------------------------------
1998(1) 1997 1998(1) 1997
- ---------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From operations -
<S> <C> <C> <C> <C>
Net investment income.................................. $ 60,246 $ 175,793 $ 1,405,135 $ 2,163,882
Net realized gain on investments....................... 3,114,679 5,086,262 5,866,057 15,148,710
Change in unrealized appreciation (depreciation)
of investments....................................... 615,812 2,093,990 16,876,578 (12,233,865)
------------ ------------ ------------ ------------
Net increase in net assets
resulting from operations......................... $ 3,790,737 $ 7,356,045 $ 24,147,770 $ 5,078,727
------------ ------------ ------------ ------------
Undistributed net investment income included in
price of shares sold and redeemed (Note 1F)............ $ - $ - $ - $ 202,446
------------ ------------ ------------ ------------
Distributions to shareholders (Note 1G) -
From net investment income - Standard shares........... $ (54,204) $ (164,977) $ - $ (2,203,743)
From net realized gain - Standard shares............... - (7,725,348) (862,026) (11,765,818)
From net realized gain - Institutional shares.......... - - (314,654) (1,107,228)
------------ ------------ ------------ ------------
Total distributions.................................. $ (54,204) $ (7,890,325) $ (1,176,680) $(15,076,789)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets from fund
share transactions (Note 4) -
Standard shares...................................... $ (5,092,538) $ 2,439,911 $ 2,999,054 $(50,302,381)
Institutional shares................................. - - 126,156 49,157,706
------------ ------------ ------------ ------------
Net increase (decrease) in net assets from Fund share
transactions........................................... $ (5,092,538) $ 2,439,911 $ 3,125,210 $ (1,144,675)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets.................... $ (1,356,005) $ 1,905,631 $ 26,096,300 $(10,940,291)
NET ASSETS:
At beginning of period................................... 27,720,746 25,815,115 257,792,048 268,732,339
------------ ------------ ------------ ------------
At end of period......................................... $ 26,364,741 $ 27,720,746 $283,888,348 $257,792,048
============= ============= ============= =============
DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME
INCLUDED IN NET ASSETS AT END OF PERIOD.................. $ (189,007) $ (195,049) $ (660,009) $ (2,065,144)
============= ============= ============= =============
+ The Wright Major Blue Chip Equities Fund does not invest in a corresponding
master portfolio.
(1) For the six months ended June 30, 1998 (unaudited).
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT MANAGED EQUITY TRUST
WRIGHT SELECTED BLUE CHIP EQUITIES FUND
===============================================================================
<TABLE>
<CAPTION>
Year Ended December 31,
----------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1998(4) 1997 1996 1995 1994 1993
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period........ $ 19.200 $ 17.730 $ 16.830 $ 13.850 $ 14.920 $ 14.790
-------- -------- -------- -------- -------- --------
Income (Loss) from Investment Operations:
Net investment income.................. $ 0.035 $ 0.133 $ 0.204 $ 0.226 $ 0.233 $ 0.196
Net realized and unrealized gain (loss)
on investments....................... 0.810 5.172 2.886 3.904 (0.763) 0.104
-------- -------- -------- -------- -------- --------
Total income (loss)
from investment operations....... $ 0.845 $ 5.305 $ 3.090 $ 4.130 $ (0.530) $ 0.300
-------- -------- -------- -------- -------- --------
Less Distributions:
From net investment income............. $ (0.045) $ (0.145) $ (0.200) $ (0.200) $ (0.180) $ (0.170)
From net realized gain on investments.. - (3.690) (1.990) (0.840) (0.360) -
In excess of net realized gain
on investments....................... - - - (0.110) - -
-------- -------- -------- -------- -------- --------
Total distributions................ $ (0.045) $ (3.835) $ (2.190) $ (1.150) $ (0.540) $ (0.170)
-------- -------- -------- -------- -------- --------
Net asset value, end of period.............. $ 20.000 $ 19.200 $ 17.730 $ 16.830 $ 13.850 $ 14.920
========= ========= ========= ========= ========= =========
Total Return (1)............................ 4.39% 32.70% 18.57% 30.34% (3.52%) 2.06%
Ratios/Supplemental Data:
Net assets, end of period (000 omitted) $ 273,633 $ 259,411 $ 208,166 $217,588 $186,016 $175,481
Ratio of expenses to average net assets 1.11%(3)(5) 1.08%(3) 1.04% 1.04% 1.03% 1.03%
Ratio of net investment income to average
net assets........................... 0.36%(5) 0.75% 1.15% 1.44% 1.57% 1.28%
Portfolio turnover rate(2) ............ - 10% 43% 44% 72% 28%
<FN>
(1) Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each period reported. Dividends and distributions, if any, are assumed to be
invested at the net asset value on the reinvestment date.
(2) Portfolio turnover represents the rate of portfolio activity for the period
while the Fund was making investments directly in securities. The portfolio
turnover rate for the period since the Fund transferred substantially all of
its investable assets to the Portfolio is shown in the Portfolio's financial
statments which are included elsewhere in this report.
(3) Includes each Fund's share of its corresponding Portfolio's allocated
expenses.
(4) For the six months ended June 30, 1998 (unaudited).
(5) Annualized.
</FN>
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT MANAGED EQUITY TRUST
WRIGHT JUNIOR BLUE CHIP EQUITIES FUND
================================================================================
<TABLE>
<CAPTION>
Year Ended December 31,
------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1998(6)(8) 1997 1996 1995 1994 1993
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period........ $ 10.480 $ 8.860 $ 10.850 $ 11.000 $ 11.950 $ 11.690
-------- -------- -------- -------- -------- --------
Income (Loss) from Investment Operations:
Net investment income (loss) (1)....... $ (0.001) $ 0.160 $ 0.067 $ 0.120 $ 0.101 $ 0.101
Net realized and unrealized gain (loss)
on investments....................... 0.071 2.380 1.738 1.977 (0.431) 0.809
-------- -------- -------- -------- -------- --------
Total income (loss)
from investment operations....... $ 0.070 $ 2.540 $ 1.805 $ 2.097 $ (0.330) $ 0.910
-------- -------- -------- -------- -------- --------
Less Distributions:
From net investment income............. $ - $ (0.035) $ (0.100) $ (0.100) $ (0.100) $ (0.060)
From net realized gain on investments.. - (0.885) (3.695) (1.030) (0.520) (0.590)
In excess of net realized gain
on investments....................... - - - (1.117) - -
-------- -------- -------- -------- -------- --------
Total distributions................ $ - $ (0.920) $ (3.795) $ (2.247) $ (0.620) $ (0.650)
-------- -------- -------- -------- -------- --------
Net asset value, end of period.............. $ 10.550 $ 10.480 $ 8.860 $ 10.850 $ 11.000 $ 11.950
========= ========= ========= ========= ========= =========
Total Return(3)............................. 0.67% 28.92% 17.53% 20.51% (2.75%) 7.93%
Ratios/Supplemental Data:
Net assets, end of period (000 omitted) $ 36,291 $ 33,490 $ 14,029 $ 25,993 $ 37,124 $ 68,226
Ratio of expenses to average net assets(1) 1.18%(5)(7) 1.18%(2)(5) 1.20%(2) 1.17%(2) 1.11% 1.09%
Ratio of net investment income (loss) to
average net assets(1) ............... (0.01%)(7) 0.35% 0.73% 0.89% 0.91% 0.86%
Portfolio turnover rate(4) ............ - 25% 41% 40% 36% 38%
<FN>
(1)For the six months ended June 30, 1998 and the years ended December 31,
1997, 1996 and 1995, the Investment Adviser and/or the Principal Underwriter
reduced their fees. Had such actions not been undertaken, net investment
income (loss) per share and the ratios would have been as follows:
1998(6) 1997 1996 1995
-------------------------------------------------
Net investment income (loss) per share. $ (0.036) $ (0.041) $ 0.048 $ 0.105
========= ========= ========= =========
Ratios (As a percentage of average net assets):
Expenses........................... 1.53%(5)(7) 1.62%(5) 1.41% 1.28%
========= ========= ========= =========
Net investment income (loss)....... (0.36%)(7) (0.09%) 0.52% 0.78%
========= ========= ========= =========
(2) Custodian fees were reduced by credits resulting from cash balances the
Trust maintained with the custodian (Note 1D). The computation of net
expenses to average daily net assets reported above is computed without
consideration of such credits, in accordance with reporting regulations in
effect beginning in 1995. If these credits were considered, the ratio of net
expenses to average daily net assets would have been reduced to 1.16%,
1.14%, 1.15% and 1.14% for the six months ended June 30,1998 and the years
ended December 31, 1997, 1996 and 1995, respectively.
(3) Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each period reported. Dividends and distributions, if any, are assumed to be
invested at the net asset value on the reinvestment date.
(4) Portfolio turnover represents the rate of portfolio activity for the period
while the Fund was making investments directly in securities. The portfolio
turnover rate for the period since the Fund transferred substantially all of
its investable assets to the Portfolio is shown in the Portfolio's financial
statments which are included elsewhere in this report.
(5) Includes each Fund's share of its corresponding Portfolio's allocated
expenses.
(6) For the six months ended June 30, 1998 (unaudited).
(7) Annualized.
(8) Certain of the per share data are based on average shares outstanding..
</FN>
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT MANAGED EQUITY TRUST
WRIGHT MAJOR BLUE CHIP EQUITIES FUND
================================================================================
<TABLE>
<CAPTION>
Year Ended December 31,
---------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1998(4) 1997 1996 1995 1994 1993
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period........ $ 12.020 $ 12.450 $ 12.650 $ 11.390 $ 12.720 $ 13.380
-------- -------- -------- -------- -------- --------
Income (Loss) from Investment Operations:
Net investment income(1)............... $ 0.012 $ 0.100 $ 0.064 $ 0.153 $ 0.180 $ 0.176
Net realized and unrealized gain (loss)
on investments....................... 1.653 3.515 2.131 3.107 (0.295) (0.046)
-------- -------- -------- -------- -------- --------
Total income (loss)
from investment operations....... $ 1.665 $ 3.615 $ 2.195 $ 3.260 $ (0.115) $ 0.130
-------- -------- -------- -------- -------- --------
Less Distributions:
From net investment income............. $ (0.025) $ (0.085) $ (0.120) $ (0.160) $ (0.160) $ (0.160)
From net realized gain on investments.. - (3.960) (2.275) (1.840) (1.055) (0.625)
In excess of net realized gains........ - - - - - (0.005)
-------- -------- -------- -------- -------- --------
Total distributions................ $ (0.025) $ (4.045) $ (2.395) $ (2.000) $ (1.215) $ (0.790)
-------- -------- -------- -------- -------- --------
Net asset value, end of period.............. $ 13.660 $ 12.020 $ 12.450 $ 12.650 $ 11.390 $ 12.720
========= ========= ========= ========= ========= =========
Total Return(3)............................. 13.85% 33.86% 17.63% 28.98% (0.70%) 1.00%
Ratios/Supplemental Data:
Net assets, end of period (000 omitted) $ 26,365 $ 27,721 $ 25,815 $ 49,134 $ 51,085 $ 88,349
Ratio of expenses to average net assets(1) 1.08%(2)(5) 1.08%(2) 1.08%(2) 1.07%(2) 0.99% 0.97%
Ratio of net investment income to average
net assets(1)...................... 0.41%(5) 0.68% 0.90% 1.19% 1.46% 1.37%
Portfolio turnover rate................ 19% 89% 45% 83% 55% 53%
<FN>
(1)For the six months ended June 30,1998 and the years ended December 31, 1997,
1996 and 1995, the Principal Underwriter and/or Investment Adviser reduced
their fees. Had such action not been undertaken, net investment income per
share and the ratios would have been as follows:
1998(5) 1997 1996 1995
-------------------------------------------------
Net investment income per share........ $ 0.002 $ 0.049 $ 0.061 $ 0.150
========= ========= ========= =========
Ratios (As a percentage of average net assets):
Expenses........................... 1.41(5) 1.43% 1.12% 1.09%
========= ========= ========= =========
Net investment income.............. 0.08%(5) 0.33% 0.86% 1.17%
========= ========= ========= =========
(2) Custodian fees were reduced by credits resulting from cash balances the
Trust maintained with the custodian (Note 1D). The computation of net
expenses to average daily net assets reported above is computed without
consideration of such credits, in accordance with reporting regulations in
effect beginning in 1995. If these credits were considered, the ratio of net
expenses to average daily net assets would have been reduced to 1.06% for
the six months ended June 30, 1998 and to 1.05% for each of the years ended
December 31, 1997, 1996 and 1995.
(3) Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each period reported. Dividends and distributions, if any, are assumed to be
invested at the net asset value on the reinvestment date.
(4) For the six months ended June 30, 1998 (unaudited).
(5) Annualized.
</FN>
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT MANAGED EQUITY TRUST
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND
================================================================================
<TABLE>
<CAPTION>
Six Months Ended June 30,
----------------------------
FINANCIAL HIGHLIGHTS 1998* 1998*
- -----------------------------------------------------------------------------------------------------
Institutional Standard
Shares Shares
<S> <C> <C>
Net asset value, beginning of period........ $ 9.130 $ 16.020
-------- --------
Income (loss) from Investment Operations:
Net investment income ................. $ 0.058 $ 0.085
Net realized and unrealized gain
on investments..................... 0.886 1.369
-------- --------
Total income
from investment operations..... $ 0.944 $ 1.454
-------- --------
Less Distributions:
From net realized gains................ $ (0.064) $ (0.064)
-------- --------
Net asset value, end of period.............. $ 10.010 $ 17.410
========= =========
Total Return(1)............................. 10.33% 9.06%
Ratios/Supplemental Data
Net assets, end of period (000 omitted) $ 49,515 $ 234,373
Ratio of expenses to average daily net
assets............................. 1.14%+(2) 1.36%+(2)
Ratio of net investment income to average
daily net assets................... 1.19%+ 0.97%+
<FN>
(1) Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each period reported. Dividends and distributions, if any, are assumed to be
invested at the net asset value on the reinvestment date.
(2) Includes each Fund's share of its corresponding Portfolio's allocated
expenses.
* For the six months ended June 30, 1998 (unaudited).
+ Annualized.
</FN>
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT MANAGED EQUITY TRUST
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND - continued
================================================================================
<TABLE>
<CAPTION>
Year Ended December 31,
---------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1997* 1997 1996 1995 1994 1993
- -----------------------------------------------------------------------------------------------------------------------------
Institutional
Shares Standard Shares
--------- ---------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period........ $ 10.00 $16.690 $ 14.770 $ 13.090 $ 13.410 $ 10.520
--------- --------- --------- --------- --------- ---------
Income (loss) from Investment Operations:
Net investment income ................. $ 0.006 $ 0.185 $ 0.128 $ 0.142 $ 0.127 $ 0.107
Net realized and unrealized gain (loss)
on investments..................... (0.646)++ 0.048++ 2.902 1.638 (0.347) 2.853
--------- --------- --------- --------- --------- ---------
Total income (loss)
from investment operations.... $ (0.640) $ 0.233 $ 3.030 $ 1.780 $ (0.220) $ 2.960
--------- --------- --------- --------- --------- ---------
Less Distributions:
From net investment income............. $ -- $ (0.163) $ (0.100) $ (0.100) $ (0.100) $ (0.070)
From net realized gains................ (0.230) (0.740) (1.010) - - -
--------- --------- --------- --------- --------- ---------
Total distributions................ $ (0.230) $ (0.903) $ (1.110) $ (0.100) $ (0.100) $ (0.070)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period.............. $ 9.130 $16.020 $ 16.690 $ 14.770 $ 13.090 $ 13.410
========== ========== ========== ========== ========== ==========
Total Return(1)............................. (6.37%) 1.54% 20.73% 13.61% (1.64%) 28.22%
Ratios/Supplemental Data
Net assets, end of period (000 omitted) $ 45,094 $212,698 $268,732 $237,176 $200,232 $100,071
Ratio of expenses to average daily net
assets............................. 1.16%(3)+ 1.31%(3) 1.30% 1.29% 1.31% 1.46%
Ratio of net investment income to average
daily net assets................... 0.15%+ 0.82% 0.82% 0.99% 1.00% 0.67%
Portfolio turnover rate(2) ............ 4% 4% 29% 12% 12% 30%
<FN>
(1)Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each period reported. Dividends and distributions, if any, are assumed to be
invested at the net asset value on the reinvestment date.
(2)Portfolio turnover represents the rate of portfolio activity for the period
while the Fund was making investments directly in securities. The portfolio
turnover rate for the period since the Fund transferred substantially all of
its investable assets to the Portfolio is shown in the Portfolio's financial
statments which are included elsewhere in this report.
(3 Includes each Fund's share of its corresponding Portfolio's allocated
expenses.
* For the period from July 7, 1997 (inception of offering Institutional shares) to December 31, 1997.
+ Annualized.
++ Per share amount is not in accordance with the net realized and unrealized
gain (loss) for the period because of the timing of sales of fund shares and
the amounts per share realized and unrealized gains and losses at such
times.
</FN>
See notes to financial satements
</TABLE>
<PAGE>
WRIGHT MANAGED EQUITY TRUST
NOTES TO FINANCIAL STATEMENTS (Unaudited)
================================================================================
(1) SIGNIFICANT ACCOUNTING POLICIES
The Wright Managed Equity Trust (the Trust), issuer of Wright Selected Blue
Chip Equities Fund (WBC) series, Wright Junior Blue Chip Equities Fund (WJBC)
series, Wright Major Blue Chip Equities Fund (WMBC) series, and Wright
International Blue Chip Equities Fund (WIBC) series (collectively, the Funds),
is registered under the Investment Company Act of 1940, as amended, as a
diversified, open-end, management investment company. WBC, WJBC, and WIBC invest
all of their investable assets in interests in a separate corresponding open-end
management investment company (a Portfolio), a New York Trust, having the same
investment objective as its corresponding Fund. WBC invests its assets in the
Selected Blue Chip Equities Portfolio, WJBC invests its assets in the Junior
Blue Chip Equities Portfolio, and WIBC invests its assets in the International
Blue Chip Equities Portfolio. The value of each Fund's investment in its
corresponding Portfolio reflects the Fund's proportionate interest in the net
assets of that Portfolio (99.9%, 99.9%, and 99.9% at June 30, 1998 for WBC,
WJBC, and WIBC, respectively). The performance of each Fund is directly affected
by the performance of its corresponding Portfolio. The financial statements of
each Portfolio, including the portfolio of investments, are included elsewhere
in this report and should be read in conjunction with each Fund's financial
statements. The following is a summary of significant accounting policies
consistently followed by the Trust in the preparation of its financial
statements. The policies are in conformity with generally accepted accounting
principles.
A. Investment Valuations - For WMBC securities listed on securities exchanges
or in the NASDAQ National Market are valued at closing sale prices.
Unlisted or listed securities for which closing sale prices are not
available are valued at the mean between the latest bid and asked prices.
Short-term obligations maturing in sixty days or less are valued at
amortized cost, which approximates value. Securities for which market
quotations are unavailable are appraised at their fair value as determined
in good faith by or at the direction of the Trustees. Valuation of
securities by WBC, WJBC and WIBC are discussed in Note 1 of the Portfolios'
Notes to Financial Statements which are included elsewhere in this report.
B. Foreign Currency Translation - Investment security valuations, other
assets, and liabilities initially expressed in foreign currencies are
translated each business day into U.S. dollars based upon current exchange
rates. Purchases and sales of foreign investment securities and income and
expenses are translated into U.S. dollars based upon currency exchange
rates prevailing on the respective dates of such transactions.
C. Income - For WMBC, dividend income and distributions to shareholders are
recorded on the ex-dividend date. Interest income is recorded on the
accrual basis. However, if the ex-dividend date has passed, certain
dividends from foreign securities are recorded as the Fund is informed of
the ex-dividend date. The net investment income of WBC, WJBC, and WIBC
consists of the Fund's pro rata share of the net investment income of its
corresponding Portfolio, less all actual and accrued expenses of each Fund
determined in accordance with generally accepted accounting principles.
D. Expense Reduction - The Funds have entered into an arrangement with its
custodian whereby interest earned on uninvested cash balances is used to
offset custodian fees. All significant reductions are reported as a
reduction of expenses in the Statement of Operations.
E. Federal Taxes - The Trust's policy is to comply with the provisions of the
Internal Revenue Code (the Code) available to regulated investment
companies and distribute to shareholders each year all of its taxable
income, including any net realized gain on
<PAGE>
investments. Accordingly, no provision for federal income or excise tax
is necessary. Withholding taxes on foreign dividends have been provided
for in accordance with the Trust's understanding of the applicable
country's tax rules and rates.
F. Equalization - The Funds follow the accounting practice known as
equalization by which a portion of the proceeds from sales and costs of
reacquisitions of Fund shares, equivalent on a per-share basis to the
amount of undistributed net investment income on the date of the
transaction, is credited or charged to undistributed net investment income.
As a result, undistributed net investment income per share is unaffected by
sales or reacquisitions of Fund shares.
G. Distributions - The Trust requires that differences in the recognition or
classification of income between the financial statements and tax earnings
and profits which result only in temporary overdistributions for financial
statement purposes, are classified as distributions in excess of net
investment income or accumulated net realized gains. Distributions in
excess of tax basis earnings and profits are reported in the financial
statements as a return of capital. Permanent differences between book and
tax accounting for certain items may result in reclassification of these
items.
H. Other - Investment transactions are accounted for on the date the
investments are purchased or sold.
I. Use of Estimates - The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported
amounts of revenue and expense during the reporting period. Actual results
could differ from those estimates.
J. Multiple Classes of Shares of Beneficial Interest - Each Fund is authorized
to offer a standard share class and an institutional share class. The share
classes differ in their respective distribution and service fees. All
shareholders bear the common expenses of the Fund pro rata based on the
average daily net assets of each class, without distinction between share
classes. Dividends are declared separately for each class. Each class has
equal rights as to voting, redemption, dividends, and liquidation. At June
30, 1998, only WIBC had an institutional share class.
K. Interim Financial Information - The interim financial statements relating
to June 30, 1998 and for the six month period then ended have not been
audited by independent certified public accountants, but in the opinion of
the Trust's management, reflect all adjustments, consisting only of
normally recurring adjustments, necessary for the fair presentation of the
financial statements.
(2) INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The Trust has engaged The Winthrop Corporation (Winthrop) to act as
investment adviser to the Funds pursuant to the respective Investment Advisory
Contracts. Pursuant to a service agreement between Winthrop and its wholly-owned
subsidiary, Wright Investors' Service, Inc. (Wright), Wright furnishes each Fund
with investment management, investment advisory, and other services. For its
services, Wright is compensated based upon a percentage of average daily net
assets which rate is adjusted as average daily net assets exceed certain levels.
For the six months ended June 30,1998, for WMBC the effective annual rate was
0.45%. To enhance the net income of the WMBC, Wright made a preliminary
reduction of its investment adviser fee in the amount of $11,200. The Portfolios
have engaged Wright to render investment advisory services. See Note 2 of the
Portfolios' Notes to Financial Statements which are included elsewhere in this
report.
<PAGE>
The Trust also has engaged Eaton Vance Management (Eaton Vance) to act
as administrator of the Trust. Under the Administration Agreement, Eaton Vance
is responsible for managing the business affairs of the Trust and is compensated
based upon a percentage of average daily net assets which rate is reduced as
average daily net assets exceed certain levels. For the period ended June 30,
1998, the effective annual rate was 0.03% for WBC, 0.05% for WJBC, 0.20% for
WMBC, and 0.03% for WIBC. Certain of the Trustees and officers of the Trust are
Trustees or officers of the above organizations. Except as to Trustees of the
Trust who are not affiliated with Eaton Vance or Wright, Trustees and officers
receive remuneration for their services to the Trust out of the fees paid to
Eaton Vance and Wright.
(3) DISTRIBUTION EXPENSES
The Trustees have adopted a Distribution Plan (the Plan) pursuant to Rule
12b-1 of the Investment Company Act of 1940. The Plan provides that each of the
Funds will pay Wright Investors' Service Distributors, Inc. (Principal
Underwriter), a wholly-owned subsidiary of Winthrop, an annual rate of 0.25% of
each Fund's average daily net assets for activities primarily intended to result
in the sale of each Fund's Standard shares. To enhance the net income of WJBC
and WMBC, the Principal Underwriter made a preliminary reduction of its fee by
$45,697 and $36,795, respectively. In addition, the Trustees have adopted a
service plan (the Service Plan) which allows the funds to reimburse the
Principle Underwriter for payments to intermediaries for providing account
administration and account maintenance services to their customers who are
beneficial owners of shares. The amount of service fee payable under the Service
Plan with respect to each class of shares may not exceed 0.25% annually of the
average daily net assets attributable to the respective classes. For the six
months ended June 30, 1998 the Funds did not accrue or pay any service fees.
(4) SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number
of full and fractional shares of beneficial interest (without par value).
Transactions in Fund shares were as follows:
<TABLE>
<CAPTION>
Six Months Ended Year Ended
June 30, 1998 (unaudited) December 31, 1997
------------------------------------------------------------
Shares Amount Shares Amount
- --------------------------------------------------------------------------------------------------------------------------
WRIGHT SELECTED BLUE CHIP EQUITIES FUND --
<S> <C> <C> <C> <C>
Sold ............................................... 1,234,319 $ 24,868,023 2,295,567 $ 43,143,360
Issued to shareholders in payment of distributions
declared............................................ 21,548 444,451 2,057,801 36,966,100
Reacquired............................................. (1,086,643) (22,080,640) (2,586,053) (48,801,052)
---------- ------------- ---------- -------------
Net increase......................................... 169,224 $ 3,231,834 1,767,315 $ 31,308,408
=========== =============== =========== ===============
WRIGHT JUNIOR BLUE CHIP EQUITIES FUND --
Sold................................................... 569,054 $ 6,140,466 2,059,302 $ 22,967,370
Issued to shareholders in payment of distributions
declared ........................................... - - 202,275 2,080,022
Reacquired............................................. (324,195) (3,497,051) (649,566) (6,380,390)
---------- ------------- ---------- -------------
Net increase......................................... 244,859 $ 2,643,415 1,612,011 $ 18,667,002
=========== =============== =========== ===============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
WRIGHT MAJOR BLUE CHIP EQUITIES FUND --
<S> <C> <C> <C> <C>
Sold................................................... 225,256 $ 2,987,517 432,179 $ 5,533,181
Issued to shareholders in payment of distributions
declared ........................................... 3,633 49,187 648,550 7,400,696
Reacquired............................................. (605,034) (8,129,242) (847,964) (10,493,966)
---------- ------------- ---------- -------------
Net increase (decrease).............................. (376,145) $ (5,092,538) 232,765 $ 2,439,911
=========== =============== =========== ===============
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND -- Standard Shares
Sold................................................... 4,304,274 $ 76,135,013 6,878,669 $ 113,256,683
Issued to shareholders in payment of distributions
declared.......................................... 38,558 692,509 726,800 11,458,067
Reacquired............................................. (4,153,707) (73,828,468) (10,434,522) (175,017,131)
---------- ------------- ---------- -------------
Net increase (decrease).............................. 189,125 $ 2,999,054 (2,829,053) $ (50,302,381)
=========== =============== =========== ===============
Period from July 7, 1997,
the Inception of
Offering Institutional Shares,
to December 31, 1997
------------------------------------
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND -- Institutional Shares
Sold................................................... - $ - 4,814,034 $ 48,051,228
Issued to shareholders in payment of distributions declared 30,788 314,655 122,616 1,107,228
Reacquired............................................. (20,235) (188,499) (82) (750)
---------- ------------- ---------- -------------
Net increase........................................... 10,553 $ 126,156 4,936,568 $ 49,157,706
=========== =============== =========== ===============
</TABLE>
(5) INVESTMENT TRANSACTIONS
Purchases and sales of investments, other than U.S. Government securities
and short-term obligations were as follows:
<TABLE>
<CAPTION>
Six Months Ended June 30, 1998 (unaudited)
--------------------------------------------------
Wright
Major Blue Chip
Equities Fund
- ---------------------------------------------------------------------------------------------------------------------
<S> <C>
Purchases.............................................................. $ 5,268,862
=============
Sales.................................................................. $ 9,358,132
=============
</TABLE>
<PAGE>
Increases and decreases in each Fund's investment in its corresponding
Portfolio for the six months ended June 30, 1998 were as follows:
<TABLE>
<CAPTION>
WBC WJBC WIBC
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Increases........................................... $24,432,847 $ 6,135,853 $75,941,629
Decreases........................................... 22,710,873 3,558,465 71,898,700
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(6) FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES
The cost and unrealized appreciation (depreciation) of the investment
securities owned at June 30, 1998, as computed on a federal income tax basis,
are as follows:
Wright Major Blue Chip
Equities Fund
- ------------------------------------------------------------------------------
Aggregate cost............................ $ 19,914,450
============
Gross unrealized appreciation............. $ 7,528,041
Gross unrealized depreciation............. (674,051)
-------------
Net unrealized appreciation............... $ 6,853,990
============
(7) LINE OF CREDIT
The Funds participate with other funds managed by Wright in a committed $20
million unsecured line of credit agreement with a bank. The Funds may
temporarily borrow from the line of credit to satisfy redemption requests or
settle investment transactions. Interest is charged to each Fund based on its
borrowings at an amount above the federal funds rate. In addition, a fee
computed at an annual rate of 0.10% on the average daily unused portion of the
$20 million line of credit, is allocated among the participating Funds at the
end of each quarter. The Funds did not have significant borrowings or allocated
fees during the period ended June 30, 1998.
<PAGE>
WRIGHT MANAGED INCOME TRUST
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 1998 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Wright Wright Wright
U.S. Treasury U.S. Treasury U.S. Treasury
Money Market Fund+ Near Term Fund Fund
(WTMM) (WNTB) (WUSTB)
- -----------------------------------------------------------------------------------------------------------------------------
ASSETS:
Investments -
<S> <C> <C> <C>
Amortized cost.................................. $ 100,512,174 $ - $ -
Investments in Portfolio, at value (identified cost
of $100,146,790 and $68,750,104 for
WNTB and WUSTB, respectively) ................ - 101,314,391 72,073,491
------------ ------------ ------------
Total investments, at value (Note 1A)............. $ 100,512,174 $101,314,391 $ 72,073,491
Cash.............................................. 49,042 - -
Receivable for Fund shares sold................... - 96,379 11,326
Receivable from Investment Adviser................ - 5,700 1,650
------------- ------------ ------------
Total Assets.................................. $ 100,561,216 $101,416,470 $ 72,086,467
------------- ------------ ------------
LIABILITIES:
Payable for Fund shares reacquired................ $ - $ 50,871 $ 32,669
Distributions payable............................. 376,889 199,938 80,521
Accrued management fees........................... 2,817 - -
Accrued expenses and other liabilities............ 17,605 6,579 5,963
------------- ------------ ------------
Total Liabilities............................. $ 397,311 $ 257,388 $ 119,153
------------- ------------ ------------
NET ASSETS........................................... $ 100,163,905 $101,159,082 $ 71,967,314
============== ============== ==============
NET ASSETS CONSIST OF:
Proceeds from sales of shares (including the market value of securities
received in exchange for Fund shares and shares issued to shareholders in
payment of distributions declared), less cost
of shares reacquired............................ $ 100,163,905 $118,453,385 $ 68,306,191
Accumulated net realized gain (loss) on investments
(computed on the basis of identified cost)...... - (18,619,195) 253,263
Unrealized appreciation of investments
(computed on the basis of identified cost)...... - 1,167,601 3,323,387
Undistributed net investment income............... - 157,291 84,473
------------- ------------ ------------
Net assets applicable to outstanding shares..... $ 100,163,905 $101,159,082 $ 71,967,314
============== ============== ==============
SHARES OF BENEFICIAL INTEREST OUTSTANDING......... 100,163,905 9,901,130 5,097,401
============== ============== ==============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST.......................... $1.00 $10.22 $14.12
============== ============== ==============
+ The Wright U.S. Treasury Money Market Fund does not invest in a corresponding
master portfolio. The amortized cost of securities held at June 30, 1998 is the
same as the market value.
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT MANAGED INCOME TRUST
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 1998 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Wright Wright
Total Return Current Income
Bond Fund+ Fund
(WTRB) (WCIF)
- ----------------------------------------------------------------------------------------------------------------------------
ASSETS:
Investments -
<S> <C> <C>
Identified cost................................. $ 87,975,846 $ -
Unrealized appreciation......................... 3,065,380 -
Investment in Portfolio, at value (identified cost
of $105,676,306 for WCIF)..................... - 107,516,035
------------ ------------
Total investments at value (Note 1A).............. $ 91,041,226 $107,516,035
Cash.............................................. 237,637 -
Receivable for Fund shares sold................... 102,486 717,699
Receivable from Investment Adviser................ 5,000 2,025
Interest receivable............................... 1,334,313 -
------------ ------------
Total Assets.................................. $ 92,720,662 $ 108,235,759
------------ ------------
LIABILITIES:
Payable for Fund shares reacquired................ $ 17,577 $ 30,982
Distributions payable............................. 101,214 147,964
Accrued expenses and other liabilities............ 11,757 6,985
------------ ------------
Total Liabilities............................. $ 130,548 $ 185,931
------------ ------------
NET ASSETS........................................... $ 92,590,114 $108,049,828
============= =============
NET ASSETS CONSIST OF:
Proceeds from sales of shares (including the market value of securities
received in exchange for Fund shares and shares issued to shareholders in
payment of dis-
tributions declared), less cost of shares reacquired.. $ 88,900,103 $107,425,390
Accumulated undistributed net realized gain (loss) on in-
vestments (computed on the basis of identified cost).. 568,395 (1,114,935)
Unrealized appreciation of investments
(computed on the basis of identified cost)...... 3,065,380 1,839,729
Undistributed (distributions in excess of) net
investment income............................... 56,236 (100,356)
------------ ------------
Net assets applicable to outstanding shares..... $ 92,590,114 $108,049,828
============= =============
Computation of net asset value, offering and redemption price per share:
Standard Shares:
Net assets...................................... $ 92,590,114 $ 85,571,232
============= =============
Shares of beneficial interest outstanding....... 7,094,506 8,042,029
============= =============
Net asset value, offering price, and redemption price
per share of beneficial interest.............. $13.05 $10.64
============= =============
Institutional Shares:
Net assets...................................... $ 22,478,596
=============
Shares of beneficial interest outstanding....... 2,223,512
=============
Net asset value, offering price, and redemption price
per share of beneficial interest.............. $10.11
=============
+ The Wright Total Return Bond Fund does not invest in a corresponding master
portfolio.
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT MANAGED INCOME TRUST
STATEMENTS OF OPERATIONS
For the Six Months Ended June 30, 1998 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Wright Wright Wright
U.S. Treasury U.S. Treasury U.S. Treasury
Money Market Fund+ Near Term Fund Fund
(WTMM) (WNTB) (WUSTB)
- ------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1B):
Income -
<S> <C> <C> <C>
Interest income................................... $ 2,452,132 $ - $ -
Interest income allocated from Portfolio.......... - 3,264,710 2,208,796
Expenses allocated from Portfolio................. - (271,672) (180,315)
------------ ------------ ------------
Investment income................................ $ 2,452,132 $ 2,993,038 $ 2,028,481
------------ ------------ ------------
Expenses -
Investment Adviser fee (Note 3)................... $ 165,816 $ - $ -
Administrator fee (Note 3)........................ 33,092 16,711 12,118
Compensation of Trustees not affiliated with the
Investment Adviser or Administrator.............. 1,428 2,053 2,053
Custodian fee (Note 1C)........................... 27,818 7,602 2,500
Distribution expenses (Note 4).................... - 127,653 90,264
Transfer and dividend disbursing agent fees....... 21,095 11,015 6,003
Printing.......................................... 3,645 4,952 5,992
Audit services.................................... 26,600 35,860 30,260
Legal services.................................... 5,650 1,705 1,705
Registration costs................................ 13,554 7,480 9,180
Miscellaneous..................................... 7,888 7,575 932
------------ ------------ ------------
Total expenses................................... $ 306,586 $ 222,606 $ 161,007
------------ ------------ ------------
Deduct -
Preliminary reduction of Investment Adviser fee
(Note 3)...................................... $ 94,685 $ - $ -
Preliminary reduction of distribution expenses by
Principal Underwriter (Note 4)................... - 28,249 14,745
Preliminary allocation of expenses to Investment
Adviser (Note 3)................................. - 5,700 1,650
------------ ------------ ------------
Total deductions................................ $ 94,685 $ 33,949 $ 16,395
------------ ------------ ------------
Net expenses.................................... $ 211,901 $ 188,657 $ 144,612
------------ ------------ ------------
Net investment income.......................... $ 2,240,231 $ 2,804,381 $ 1,883,869
------------ ------------ ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investment transactions from
Portfolio (identified cost basis)................. $ - $ (351,200) $ 263,278
Net change in unrealized appreciation
of investments.................................... - 188,706 638,870
------------ ------------ ------------
Net realized and unrealized gain (loss) on investments $ - $ (162,494) $ 902,148
------------ ------------ ------------
Net increase in net assets from operations....... $ 2,240,231 $ 2,641,887 $ 2,786,017
============= ============= =============
+ The Wright U.S. Treasury Money Market Fund does not invest in a corresponding master portfolio.
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT MANAGED INCOME TRUST
STATEMENTS OF OPERATIONS
For the Six Months Ended June 30, 1998 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Wright Wright
Total Return Current Income
Bond Fund+ Fund
(WTRB) (WCIF)
- --------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1B):
Income -
<S> <C> <C>
Interest income................................... $ 2,640,512 $ -
Interest income allocated from Portfolio.......... - 3,572,341
Expenses allocated from Portfolio................. - (276,372)
------------ ------------
Investment income................................ $ 2,640,512 $ 3,295,969
------------ ------------
Expenses -
Investment Adviser fee (Note 3)................... $ 169,329 $ -
Administrator fee (Note 3)........................ 42,331 16,446
Compensation of Trustees not affiliated with the
Investment Adviser or Administrator.............. 1,358 2,066
Custodian fee (Note 1C)........................... 16,071 12,252
Distribution expenses (Note 4).................... 104,994 98,645
Transfer and dividend disbursing agent fees....... 16,084 8,095
Printing.......................................... 2,161 3,845
Audit services.................................... 29,460 12,660
Legal services.................................... 1,765 679
Registration costs................................ 8,795 29,795
Miscellaneous..................................... 3,789 3,960
------------ ------------
Total expenses................................... $ 396,137 $ 188,443
Deduct -
Preliminary reduction of distribution expenses by
Principal Underwriter (Note 4)................... $ 13,660 $ 17,135
Preliminary allocation of expenses to Investment
Adviser (Note 3)................................. 5,000 2,025
------------ ------------
Total deductions................................ $ 18,660 $ 19,160
------------ ------------
Net expenses.................................... $ 377,477 $ 169,283
------------ ------------
Net investment income.......................... $ 2,263,035 $ 3,126,686
------------ ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investment transactions
(identified cost basis)........................... $ 574,149 $ -
Net realized loss on investment transactions
from Portfolio (identified cost basis)............ - (68,152)
------------ ------------
Net realized gain (loss) on investments........... $ 574,149 $ (68,152)
------------ ------------
Change in unrealized appreciation of investments... $ 470,124 $ -
Change in unrealized appreciation of investments from
Portfolio......................................... - 103,908
------------ ------------
Net change in unrealized appreciation of investments $ 470,124 $ 103,908
------------ ------------
Net realized and unrealized gain on investments... $ 1,044,273 $ 35,756
------------ ------------
Net increase in net assets from operations....... $ 3,307,308 $ 3,162,442
============= =============
+ The Wright Total Return Bond Fund does not invest in a corresponding master
portfolio.
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT MANAGED INCOME TRUST
STATEMENTS OF CHANGES IN NET ASSETS
================================================================================
<TABLE>
<CAPTION>
Wright Wright Wright
U.S. Treasury U.S. Treasury U.S. Treasury
Money Market Fund Near Term Fund Fund
(WTMM) (WNTB) (WUSTB)
Year Ended Dec. 31 Year Ended Dec. 31 Year Ended Dec. 31
-------------------------------------------------------------------------------------
1998(1) 1997 1998(1) 1997 1998(1) 1997
- ---------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From operations -
<S> <C> <C> <C> <C> <C> <C>
Net investment income........$ 2,240,231 $ 4,485,565 $ 2,804,381 $ 6,722,207 $ 1,883,869 $ 3,378,249
Net realized gain (loss) on
investment transactions..... - - (351,200) (189,969) 263,278 (10,016)
Change in unrealized appreciation
(depreciation) of investments - - 188,706 (21,256) 638,870 2,443,170
------------ ------------ ------------ ------------ ------------ ------------
Net increase in
net assets resulting from
operations.................$ 2,240,231 $ 4,485,565 $ 2,641,887 $ 6,510,982 $ 2,786,017 $ 5,811,403
------------ ------------ ------------ ------------ ------------ ------------
Distributions to shareholders (Note 2) -
From net investment income...$ (2,240,231) $ (4,485,565) $ (2,876,089) $ (6,658,751) $ (1,904,920) $ (3,277,052)
From net realized gain....... - - - - - (438,333)
In excess of realized gains.. - - - - - (22,651)
------------ ------------ ------------ ------------ ------------ ------------
Total distributions.........$ (2,240,231) $ (4,485,565) $ (2,876,089) $ (6,658,751) $ (1,904,920) $ (3,738,036)
------------ ------------ ------------ ------------ ------------ ------------
Fund share transactions (Note 5)+ -
Proceeds from shares sold....$153,754,594 $227,054,512 $ 8,712,669 $ 19,532,312 $ 5,155,299 $ 26,166,981
Reinvestment of dividends.... 980,234 2,684,765 1,636,698 3,583,844 1,428,534 1,808,793
Cost of shares reacquired....(141,629,699) (237,864,010) (11,520,879) (50,728,625) (9,655,673) (10,869,033)
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in net
assets from Fund share
transactions.................$ 13,105,129 $ (8,124,733) $ (1,171,512) $ (27,612,469) $ (3,071,840) $ 17,106,741
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease)
in net assets.............$ 13,105,129 $ (8,124,733) $ (1,405,714) $ (27,760,238) $ (2,190,743) $ 19,180,108
NET ASSETS:
At beginning of period........ 87,058,776 95,183,509 102,564,796 130,325,034 74,158,057 54,977,949
------------ ------------ ------------ ------------ ------------ ------------
At end of period..............$100,163,905 $ 87,058,776 $101,159,082 $ 102,564,796 $ 71,967,314 $ 74,158,057
============= ============= ============= ============= ============= =============
UNDISTRIBUTED NET
INVESTMENT INCOME
INCLUDED IN NET ASSETS
AT END OF PERIOD..............$ - $ - $ 157,291 $ 228,999 $ 84,473 $ 105,524
============= ============= ============= ============= ============= =============
+ For WTMM, the Fund share transactions are at a net asset value of $1.00 per share.
(1) For the six months ended June 30, 1998 (unaudited).
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT MANAGED INCOME TRUST
STATEMENTS OF CHANGES IN NET ASSETS
================================================================================
<TABLE>
<CAPTION>
Wright Wright
Total Return Current Income
Bond Fund Fund
(WTRB) (WCIF)
Year Ended Dec. 31 Year Ended Dec. 31
--------------------------------------------------------
1998(1) 1997 1998(1) 1997
- --------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From operations -
<S> <C> <C> <C> <C>
Net investment income........ $ 2,263,035 $ 4,482,734 $ 3,126,686 $ 5,415,858
Net realized gain (loss) on
investment transactions..... 574,149 208,959 (68,152) (98,264)
Change in unrealized appreciation
of investments.............. 470,124 2,451,993 103,908 2,131,195
------------ ------------ ------------ ------------
Net increase in
net assets resulting from
operations................. $ 3,307,308 $ 7,143,686 $ 3,162,442 $ 7,448,789
------------ ------------ ------------ ------------
Distributions to shareholders (Note 2) -
From net investment income -
Standard shares............. $ (2,291,641) $ (4,473,380) $ (2,433,988) $ (4,764,576)
Institutional shares........ - - (670,330) (615,830)
In excess of net investment income -
Institutional shares........ - - (22,640) -
From net realized gain -
Standard shares............. (214,714) - - -
------------ ------------ ------------ ------------
Total distributions......... $ (2,506,355) $ (4,473,380) $ (3,126,958) $ (5,380,406)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets
from Fund share transactions (Note 5) -
Standard shares............. $ 11,785,498 $ (14,048,274) $ 9,303,106 $ 9,750,500
Institutional shares........ - - 692,967 21,576,017
------------ ------------ ------------ ------------
Net increase (decrease) in net assets
from Fund share transactions $ 11,785,498 $ (14,048,274) $ 9,996,073 $ 31,326,517
------------ ------------ ------------ ------------
Net increase (decrease)
in net assets............. $ 12,586,451 $ (11,377,968) $ 10,031,557 $ 33,394,900
NET ASSETS:
At beginning of period........ 80,003,663 91,381,631 98,018,271 64,623,371
------------ ------------ ------------ ------------
At end of period.............. $ 92,590,114 $ 80,003,663 $108,049,828 $ 98,018,271
============= ============= ============= =============
UNDISTRIBUTED (DISTRIBUTIONS
IN EXCESS OF) NET INVESTMENT
INCOME INCLUDED IN NET
ASSETS AT END OF PERIOD....... $ 56,236 $ 84,842 $ (100,356) $ (100,084)
============= ============= ============= =============
(1) For the six months ended June 30, 1998 (unaudited).
See notes to fianacial statements
</TABLE>
<PAGE>
WRIGHT MANAGED INCOME TRUST
WRIGHT U.S. TREASURY MONEY MARKET FUND
================================================================================
<TABLE>
<CAPTION>
Year Ended December 31,
----------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1998(4) 1997 1996 1995 1994 1993
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period........... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Income from Investment Operations:
Net investment income(1) .................. 0.02345 0.04739 0.04745 0.05212 0.03494 0.02503
Less Distributions:
From net investment income.................. (0.02345) (0.04739) (0.04745) (0.05212) (0.03494) (0.02503)
-------- -------- -------- -------- -------- --------
Net asset value, end of year................... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
========= ========= ========= ========= ========= =========
Total Return(2)................................ 2.34% 4.84% 4.85% 5.34% 3.55% 2.53%
Ratios/Supplemental Data:
Net assets, end of period (000 omitted)..... $100,164 $87,059 $95,184 $45,889 $68,877 $11,011
Ratio of net expenses to average daily
net assets(1)............................. 0.45%(5) 0.45% 0.45%(3) 0.46%(3) 0.45% 0.45%
Ratio of net investment income to average daily
net assets(1)............................. 4.71%(5) 4.74% 4.73% 5.22% 3.77% 2.52%
<FN>
(1)During each of the above periods, the Investment Adviser reduced its fee and
in certain periods was allocated a portion of the operating expenses. Had
such actions not been undertaken, net investment income per share and the
ratios would have been as follows:
Year Ended December 31,
-------------------------------------------------------------------------
1998(4) 1997 1996 1995 1994 1993
- --------------------------------------------------------------------------------------------------------------------------
Net investment income per share................ $ 0.02245 $0.04599 $0.04524 $0.05120 $0.03253 $0.01977
========= ========= ========= ========= ========= =========
Ratios (As a percentage of average daily net assets):
Expenses.................................... 0.65%(5) 0.59% 0.67% 0.65% 0.71% 0.97%
========= ========= ========= ========= ========= =========
Net investment income ...................... 4.51%(5) 4.60% 4.51% 5.03% 3.51% 1.99%
========= ========= ========= ========= ========= =========
(2)Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each period reported. Dividends and distributions, if any, are assumed to be
reinvested at the net asset value on the reinvestment date.
(3)Custodian fees were reduced by credits resulting from cash balances the Fund
maintained with the custodian (Note 1C). The computation of net expenses to
average daily net assets reported above is computed without consideration of
such credits, in accordance with reporting regulations in effect beginning in
1995. If these credits were considered, the ratio of net expenses to average
daily net assets would have been reduced to 0.44% and 0.45% for the years
ended December 31, 1996 and 1995, respectively.
(4) For the six months ended June 30, 1998 (unaudited).
(5) Annualized.
</FN>
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT MANAGED INCOME TRUST
WRIGHT U.S. TREASURY NEAR TERM FUND
================================================================================
<TABLE>
<CAPTION>
Year Ended December 31,
---------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1998(5) 1997 1996 1995 1994 1993
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period........ $ 10.240 $ 10.240 $ 10.450 $ 9.920 $ 10.840 $ 10.660
-------- -------- -------- -------- -------- --------
Income (loss) from Investment Operations:
Net investment income(1) ................ $ 0.280 $ 0.599 $ 0.606 $ 0.631 $ 0.588 $ 0.655
Net realized and unrealized gain (loss)
on investments......................... (0.013) (0.010) (0.212) 0.524 (0.920) 0.180
-------- -------- -------- -------- -------- --------
Total income (loss) from investment
operations........................... $ 0.267 $ 0.589 $ 0.394 $ 1.155 $ (0.332) $ 0.835
-------- -------- -------- -------- -------- --------
Less distributions from net investment income $ (0.287) $ (0.589) $ (0.604) $ (0.625) $ (0.588) $ (0.655)
-------- -------- -------- -------- -------- --------
Net asset value, end of period.............. $ 10.220 $ 10.240 $ 10.240 $ 10.450 $ 9.920 $ 10.840
========= ========= ========= ========= ========= ========
Total Return(2)............................. 2.63% 5.93% 3.91% 11.93% (3.10%) 7.95%
Ratios/Supplemental Data:
Net assets, end of period (000 omitted).. $101,159 $102,565 $130,325 $ 143,600 $ 212,122 $380,917
Ratio of expenses to average net assets.. 0.91%(4)(6) 0.87%(4) 0.80% 0.80% 0.70% 0.70%
Ratio of expenses after custodian fee
reduction to average net assets........ 0.90%(4)(6) - - - - -
Ratio of net investment income to average
net assets............................. 5.50%(6) 5.82% 5.90% 6.20% 5.70% 6.00%
Portfolio Turnover Rate(3) .............. - 4% 28% 21% 33% 22%
<FN>
(1)During the period ended June 30, 1998 and during the year ended December 31,
1997, the operating expenses of the fund were reduced by an allocation of
expenses to the Investment Adviser or a reduction in distribution fees, or a
combination, thereof. Had such action not been undertaken, net investment
income per share and the ratios would have been as follows:
1998(5) 1997
Net investment income per share........ $ 0.276 $ 0.597
========= =========
Ratios (As a percentage of average net assets):
Expenses........................... 0.98%(4)(6) 0.89%(4)
========= =========
Expenses after custodian fee reduction 0.97%(4)(6) -
========= =========
Net investment income.............. 5.43%(6) 5.80%
========= =========
(2) Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each year reported. Dividends and distributions, if any, are assumed to be
reinvested at the net asset value on the reinvestment date.
(3) Portfolio turnover represents the rate of portfolio activity for the period
while the Fund was making investments directly in securities. The portfolio
turnover rate for the period since the Fund transferred substantially all of
its investable assets to the Portfolio is shown in the Portfolio's financial
statements which are included elsewhere in this report.
(4) Includes each Fund's share of its corresponding Portfolio's allocated
expenses.
(5) For the six months ended June 30, 1998 (unaudited).
(6) Annualized.
</FN>
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT MANAGED INCOME TRUST
WRIGHT U.S. TREASURY FUND
================================================================================
<TABLE>
<CAPTION>
Year Ended December 31,
---------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1998(6) 1997 1996(3) 1995 1994 1993
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period........ $ 13.950 $ 13.580 $ 14.710 $ 12.250 $ 14.360 $ 13.190
-------- -------- -------- -------- -------- --------
Income (loss) from Investment Operations:
Net investment income(1)................. $ 0.365 $ 0.721 $ 0.769 $ 0.880 $ 0.880 $ 0.892
Net realized and unrealized gain (loss)
on investments......................... 0.173 0.462 (0.973) 2.458 (2.110) 1.170
-------- -------- -------- -------- -------- --------
Total income (loss)
from investment operations........... $ 0.538 $ 1.183 $ (0.204) $ 3.338 $ (1.230) $ 2.062
-------- -------- -------- -------- -------- --------
Less Distributions:
From net investment income............... $ (0.368) $ (0.703) $ (0.756) $ (0.878) $ (0.880) $ (0.892)
From net realized gain................... - (0.105) (0.170) - - -
In excess of net realized gain on investments - (0.005) - - - -
-------- -------- -------- -------- -------- --------
Total distributions.................... $ (0.368) $ (0.813) $ (0.926) $ (0.878) $ (0.880) $ (0.892)
-------- -------- -------- -------- -------- --------
Net asset value, end of period.............. $ 14.120 $ 13.950 $ 13.580 $ 14.710 $ 12.250 $ 14.360
========= ========= ========= ========= ========= =========
Total Return(2)............................. 3.90% 9.09% (1.23%) 28.18% (8.66%) 15.90%
Ratios/Supplemental Data:
Net assets, end of period (000 omitted).. $ 71,967 $ 74,158 $ 54,978 $ 15,156 $ 16,658 $ 29,846
Ratio of net expenses to average net assets 0.93%(5)(7) 1.01%(5) 0.90% 0.90% 0.90% 0.90%
Ratio of net expenses after custodian fee
reduction to average net assets........ 0.90%(5)(7) 0.87%(5) - - - -
Ratio of net investment income to average
net assets............................. 5.22%(7) 5.34% 5.50% 6.60% 6.90% 6.30%
Portfolio Turnover Rate(4) .............. - 1% 65% 8% 1% 12%
<FN>
(1)During the period ended June 30, 1998 and during each of the five years
ended December 31, 1997, the operating expenses of the Fund were reduced by
an allocation of expenses to the Investment Adviser or a reduction in
distribution fees by the Principal Underwriter, or a combination thereof. Had
such action not been undertaken, the net investment income per share and the
ratios would have been as follows:
Year Ended December 31,
---------------------------------------------------------------------------
1998(6) 1997 1996 1995 1994 1993
- ----------------------------------------------------------------------------------------------------------------------------
Net investment income per share............. $ 0.362 $ 0.720 $ 0.769 $ 0.827 $ 0.854 $ 0.878
========= ========= ========= ========= ========= =========
Ratios (As a percentage of average net assets):
Expenses .............................. 0.97%(5)(7) 1.02%(5) 0.90% 1.20% 1.10% 1.00%
========= ========= ========= ========= ========= =========
Expenses after custodian fee reduction... 0.94%(5)(7) 0.89%(5) - - - -
========= ========= ========= ========= ========= =========
Net investment income.................... 5.18%(7) 5.33% 5.50% 6.20% 6.70% 6.20%
========= ========= ========= ========= ========= =========
(2)Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each year reported. Dividends and distributions, if any, are assumed to be
reinvested at the net asset value on the reinvestment date.
(3) Certain of the per share data are based on average shares outstanding.
(4) Portfolio turnover represents the rate of portfolio activity for the period
while the Fund was making investments directly in securities. The portfolio
turnover rate for the period since the Fund transferred substantially all of
its investable assets to the Portfolio is shown in the Portfolio's financial
statements which are included elsewhere in this report.
(5) Includes each Fund's share of its corresponding Portfolio's allocated
expenses.
(6) For the six months ended June 30, 1998 (unaudited).
(7) Annualized.
</FN>
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT MANAGED INCOME TRUST
WRIGHT TOTAL RETURN BOND FUND
================================================================================
<TABLE>
<CAPTION>
Year Ended December 31,
---------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1998(3) 1997 1996(2) 1995 1994 1993
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period........ $ 12.930 $ 12.500 $ 13.120 $ 11.430 $ 13.010 $ 12.610
-------- -------- -------- -------- -------- --------
Income (loss) from Investment Operations:
Net investment income+ .................. $ 0.343 $ 0.690 $ 0.720 $ 0.758 $ 0.740 $ 0.789
Net realized and unrealized gain (loss) on
investments............................ 0.159 0.427 (0.631) 1.685 (1.580) 0.580
-------- -------- -------- -------- -------- --------
Total income (loss)
from investment operations........... $ 0.502 $ 1.117 $ 0.089 $ 2.443 $ (0.840) $ 1.369
-------- -------- -------- -------- -------- --------
Less Distributions:
From net investment income............... $ (0.349) $ (0.687) $ (0.709) $ (0.753) $ (0.740) $ (0.789)
From net realized gain on investments.... (0.033) - - - - (0.177)
In excess of net realized gain on investments - - - - - (0.003)
-------- -------- -------- -------- -------- --------
Total distributions.................... $ (0.382) $ (0.687) $ (0.709) $ (0.753) $ (0.740) $ (0.969)
-------- -------- -------- -------- -------- --------
Net asset value, end of period.............. $ 13.050 $ 12.930 $ 12.500 $ 13.120 $ 11.430 $ 13.010
========= ========= ========= ========= ========= =========
Total Return(1)............................. 3.93% 9.25% 0.87% 21.97% (6.57%) 11.03%
Ratios/Supplemental Data:
Net assets, end of period (000 omitted).. $ 92,590 $ 80,004 $ 91,382 $122,762 $143,497 $259,513
Ratio of net expenses to average net assets 0.89%(4) 0.90% 0.80% 0.80% 0.80% 0.80%
Ratio of net investment income to average
net assets............................. 5.35%(4) 5.50% 5.70% 6.20% 6.10% 6.00%
Portfolio Turnover Rate.................. 20% 34% 96% 50% 32% 36%
<FN>
(+)During the period ended June 30, 1998, the operating expenses of the fund
were reduced by an allocation of expenses to the Investment Adviser and
reduction in distribution fees. Had such action not been undertaken, net
investment income per share and the ratios would have been as follows:
1998(3)
Net investment income per share........ $ 0.340
=========
Ratios (As a percentage of average net assets):
Expenses........................... 0.94%(4)
=========
Net investment income.............. 5.30%(4)
=========
(1)Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each year reported. Dividends and distributions, if any, are assumed to be
reinvested at the net asset value on the reinvestment date.
(2)Certain of the per share data are based on average shares outstanding.
(3)For the six months ended June 30, 1998 (unaudited).
(4) Annualized.
</FN>
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT MANAGED INCOME TRUST
WRIGHT CURRENT INCOME FUND
================================================================================
<TABLE>
<CAPTION>
Six Months Ended June 30, (unaudited)
-------------------------------------------
FINANCIAL HIGHLIGHTS 1998 1998
- ------------------------------------------------------------------------------------------------------------
Institutional Standard
Shares Shares
<S> <C> <C>
Net asset value, beginning of period........ $ 10.120 $ 10.630
-------- --------
Income (loss) from Investment Operations:
Net investment income(1) ................ $ 0.313 $ 0.329
Net realized and unrealized gain on
investments............................ 0.000(+) 0.006
-------- --------
Total income
from investment operations......... $ 0.313 $ 0.335
-------- --------
Less Distributions:
From net investment income............... $ (0.312) $ (0.325)
In excess of net investment income....... (0.011) -
-------- --------
Total distributions.................. $ (0.323) $ (0.325)
-------- --------
Net asset value, end of period.............. $ 10.110 $ 10.640
========= =========
Total Return(2)............................. 3.07% 3.19%
Ratios/Supplemental Data:
Net assets, end of period (000 omitted).. $ 22,479 $ 85,571
Ratio of net expenses to average net assets 0.82%(3)(4) 0.90%(3)(4)
Ratio of net investment income to average
net assets......................... 6.12%(4) 6.22%(4)
<FN>
(1)For the period ended June 30, 1998, the operating expenses of the fund were
reduced by an allocation of expenses to the Investment Adviser and a
reduction in distribution fees by the Principal Underwriter. Had such action
not been undertaken, net investment income per share and the ratios would
have been as follows:
1998
Net investment income per share.......... $ 0.326
=========
Ratios (As a percentage of average net assets):
Expenses........................... 0.95%(3)(4)
=========
Net investment income.............. 6.17%(4)
=========
(2)Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each period reported. Dividends and distributions, if any, are assumed to be
reinvested at the net asset value on the reinvestment date.
(3)Includes each Fund's share of its corresponding Portfolio's allocated
expenses.
(4)Annualized.
(+)Amount represents less than $0.001 per share.
</FN>
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT MANAGED INCOME TRUST
WRIGHT CURRENT INCOME FUND - continued
================================================================================
<TABLE>
<CAPTION>
Year Ended December 31,
---------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1997** 1997 1996 1995 1994 1993
- ----------------------------------------------------------------------------------------------------------------------------
Institutional
Shares Standard Shares
--------- ---------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period........ $ 10.000 $ 10.430 $ 10.670 $ 9.710 $ 10.750 $ 10.780
-------- -------- -------- -------- -------- --------
Income (loss) from Investment Operations:
Net investment income(1) ................ $ 0.313 $ 0.658 $ 0.674 $ 0.696 $ 0.690 $ 0.728
Net realized and unrealized gain (loss) on
investments............................ 0.120 0.206 (0.239) 0.955 (1.040) (0.030)
-------- -------- -------- -------- -------- --------
Total income (loss)
from investment operations......... $ 0.433 $ 0.864 $ 0.435 $ 1.651 $ (0.350) $ 0.698
-------- -------- -------- -------- -------- --------
Less Distributions:
From net investment income............... $ (0.314)(6) $ (0.664) $ (0.675) $ (0.691) $ (0.690)* $ (0.728)
-------- -------- -------- -------- -------- --------
Total distributions.................. $ (0.313) $ (0.664) $ (0.675) $ (0.691) $ (0.690) $ (0.728)
-------- -------- -------- -------- -------- --------
Net asset value, end of period.............. $ 10.120 $ 10.630 $ 10.430 $ 10.670 $ 9.710 $ 10.750
========= ========= ========= ========= ========= =========
Total Return(2)............................. 4.40% 8.56% 4.31% 17.46% (3.30%) 6.59%
Ratios/Supplemental Data:
Net assets, end of period (000 omitted).. $ 21,801 $ 76,217 $ 64,623 $ 66,345 $84,178 $115,158
Ratio of net expenses to average net assets 0.48%(4)(5) 0.89%(4) 0.90% 0.90% 0.80% 0.80%
Ratio of net investment income to average
net assets......................... 4.70%(5) 6.44% 6.50% 6.80% 6.90% 6.70%
Portfolio Turnover Rate(3) .............. 2% 3% 9% 26% 10% 4%
<FN>
* Includes distribution in excess of net investment income of $.00013 per share.
** For the period from July 7, 1997 (start of business) to December 31, 1997.
(1)For the year ended December 31, 1997, the Principal Underwriter reduced its
fees. Had such action not been undertaken, net investment income per share
and the ratios would have been as follows:
1997
Net investment income per share........ $ 0.652
=========
Ratios (As a percentage of average net assets):
Expenses........................... 0.95%(4)
=========
Net investment income.............. 6.38%
=========
(2)Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each period reported. Dividends and distributions, if any, are assumed to be
reinvested at the net asset value on the reinvestment date.
(3) Portfolio turnover represents the rate of portfolio activity for the period
while the Fund was making investments directly in securities. The portfolio
turnover rate for the period since the Fund transferred substantially all of
its investable assets to the Portfolio is shown in the Portfolio's financial
statements which are included elsewhere in this report.
(4) Includes each Fund's share of its corresponding Portfolio's allocated
expenses.
(5) Annualized.
(6) Includes distribution in excess of net investment income of $0.00001
per share.
</FN>
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT MANAGED INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (Unaudited)
================================================================================
(1) SIGNIFICANT ACCOUNTING POLICIES
The Wright Managed Income Trust (the Trust), issuer of Wright U.S. Treasury
Money Market Fund (WTMM) series, Wright U.S. Treasury Near Term Fund (WNTB)
series, Wright U.S. Treasury Fund (WUSTB) series, Wright Total Return Bond Fund
(WTRB) series, and Wright Current Income Fund (WCIF) series (collectively, the
Funds), is registered under the Investment Company Act of 1940, as amended, as a
diversified, open-end, management investment company. WNTB, WUSTB, and WCIF
invest all of their investable assets in interests in a separate corresponding
open-end management investment company (a Portfolio), a New York Trust, having
the same investment objective as its corresponding Fund. WNTB invests its assets
in the Near Term Portfolio, WUSTB invests its assets in the U.S. Treasury
Portfolio, and WCIF invests its assets in the Current Income Portfolio. The
value of each Fund's investment in its corresponding Portfolio reflects the
Fund's proportionate interest in the net assets of that Portfolio (99.9%, 99.9%,
and 99.9% at June 30, 1998 for WNTB, WUSTB, and WCIF, respectively). The
performance of each Fund is directly affected by the performance of its
corresponding Portfolio. The financial statements of each Portfolio, including
the portfolio of investments, are included elsewhere in this report and should
be read in conjunction with each Fund's financial statements. The following is a
summary of significant accounting policies consistently followed by the Trust in
the preparation of its financial statements. The policies are in conformity with
generally accepted accounting principles.
A. Investment Valuations - For WTRB investments for which market quotations
are readily available are valued at current market value as furnished by a
pricing service. Investments for which valuations are not readily available
will be appraised at their fair value as determined in good faith by or at
the direction of the Trustees. Short-term obligations maturing in sixty
days or less are valued at amortized cost, which approximates value. WTMM's
money market instruments are valued at amortized cost, which the Trustees
have determined in good faith constitutes value. WTMM's use of amortized
cost is subject to the Fund's compliance with certain conditions as
specified under Rule 2a-7 of the Investment Company Act of 1940. Valuation
of securities by WNTB, WUSTB, and WCIF are discussed in Note 1 of the
Portfolios' Notes to Financial Statements which are included elsewhere in
this report.
B. Interest Income - For WTMM and WTRB, interest income consists of interest
accrued and discount earned (including both original issue and market
discount) and amortization of premium or discount on long-term debt
securities when required for federal income tax purposes. The income is
accrued ratably to the date of maturity on the investments of the Funds.
The net investment income of WNTB, WUSTB, and WCIF consists of the Fund's
pro rata share of the net investment income of its corresponding Portfolio,
less all actual and accrued expenses of each Fund determined in accordance
with generally accepted accounting principles.
C. Expense Reduction - The Funds have entered into an arrangement with its
custodian agent whereby interest earned on uninvested cash balance is used
to offset custodian fees. All significant reductions are reported as a
reduction of expenses in the Statement of Operations.
D. Federal Taxes - The Trust's policy is to comply with the provisions of the
Internal Revenue Code (the Code) available to regulated investment
companies and to distribute to shareholders each year all of its taxable
income, including any net realized gain on investments. Accordingly, no
provision for federal income or excise tax is necessary.
E. Use of Estimates - The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported
amounts of revenue and expense during the reporting period. Actual results
could differ from those estimates.
F. Other - Investment transactions are accounted for on the date the investments
are purchased or sold.
<PAGE>
G. Multiple Classes of Shares of Beneficial Interest - Each Fund is authorized
to offer a standard share class and an institutional share class. The share
classes differ in their respective distribution, service fees and other
class specific expenses. All shareholders bear the common expenses of the
Fund pro rata based on the average daily net assets of each class, without
distinction between share classes. Dividends are declared separately for
each class. Each class has equal rights as to voting, redemption,
dividends, and liquidation. At June 30, 1998, only WCIF had an
institutional share class.
H. Interim Financial Information - The interim financial statments relating to
June 30, 1998 and for the six month period then ended have not been audited
by independent certified public accountants, but in the opinion of the
Trust's management, reflect all adjustments, consisting only of normally
recurring adjustments,necessary or thefiar presentation of the financial
statements.
(2) DISTRIBUTIONS
Each Fund's policy is to determine net income once daily, as of the close
of the New York Stock Exchange and the net income so determined is declared as a
dividend to shareholders of record at the time of such determination.
Distributions of realized capital gains are made at least annually. Shareholders
may reinvest capital gain distributions in additional shares of the same Fund at
the net asset value as of the ex-dividend date. Dividends may be reinvested in
additional shares of the same Fund at the net asset value as of the payable
date.
The Trust requires that differences in the recognition or classification of
income between the financial statements and tax earnings and profits which
result in temporary overdistributions for financial statement purposes, be
classified as distributions in excess of net investment income or accumulated
net realized gains.
The tax treatment of distributions for the calendar year will be reported
to shareholders prior to February 1, 1999 and will be based on tax accounting
methods which may differ from amounts determined for financial statement
purposes.
(3) INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The Trust has engaged The Winthrop Corporation (Winthrop) to act as
investment adviser to the Funds pursuant to the respective Investment Advisory
Contracts. Pursuant to a service agreement between Winthrop and its wholly-owned
subsidiary, Wright Investors' Service, Inc. (Wright), Wright furnishes each Fund
with investment management, investment advisory, and other services. For its
services, Wright is compensated based upon a percentage of average daily net
assets which rate is adjusted as average daily net assets exceed certain levels.
For the six-month period ended June 30, 1998, for WTMM, and WTRB the effective
annual rate was 0.35% and 0.40%, respectively. The Portfolios have engaged
Wright to render investment advisory services. See Note 2 of the Portfolios'
Notes to Financial Statements which are included elsewhere in this report. To
enhance the net income of the Funds, Wright made a preliminary reduction of its
investment adviser fee by $94,685 for WTMM. In addition, $5,700, $1,650, $5,000,
and $2,025 of expenses of WNTB, WUSTB, WTRB, and WCIF, respectively, was
allocated to the Investment Adviser on a preliminary basis.
The Trust also has engaged Eaton Vance Management (Eaton Vance) to act as
administrator of the Trust. Under the Administration Agreement, Eaton Vance is
responsible for managing the business affairs of the Trust and is compensated
based upon a percentage of average daily net assets which rate is reduced as
average daily net assets exceed certain levels. For the six month period ended
June 30, 1998, the effective annual rate was 0.07% for WTMM, 0.03% for WNTB,
0.03% for WUSTB, 0.10% for WTRB, and 0.03% for WCIF. Certain of the Trustees and
officers of the Trust are directors/trustees and/or officers of the above
organizations. Except as to Trustees of the Trust who are not affiliated with
Eaton Vance or Wright, Trustees and officers received remuneration for their
services to the Trust out of fees paid to Eaton Vance and Wright.
<PAGE>
(4) DISTRIBUTION EXPENSES
The Trustees have adopted a Distribution Plan (the Plan) pursuant to Rule
12b-1 of the Investment Company Act of 1940. The Plan provides that each of the
Funds, except WTMM, will pay Wright Investors' Service Distributors, Inc.
(Principal Underwriter), a wholly-owned subsidiary of Winthrop, at an annual
rate of 0.25% of the average daily net assets of each Fund for activities
primarily intended to result in the sale of each Fund's Standard shares. To
enhance the net income of WNTB, WUSTB, WTRB, and WCIF, the Principal Underwriter
made a preliminary reduction of its fee by $28,249, $14,745, $13,660, and
$17,135, respectively.
In addition, the Trustees have adopted a service plan (the Service Plan) which
allows the Funds to reimburse the Principal Underwriter for payments to
intermediaries for providing account administration and personal and account
maintenance services to their customers who are beneficial owners of shares. The
amount of service fee payable under the Service Plan with respect to each class
of shares may not exceed 0.25% annually of the average daily net assets
attributable to the respective classes. For the six months ended June 30, 1998
the Funds did not accrue or pay any service fees.
(5) SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number
of full and fractional shares of beneficial interest (without par value).
Transactions in Fund shares were as follows:
<TABLE>
<CAPTION>
Six Months Ended Year Ended
June 30, 1998 (unaudited) December 31, 1997
----------------------------------------------------------
Shares Amount Shares Amount
- -------------------------------------------------------------------------------------------------------------------------
WRIGHT U.S. TREASURY NEAR TERM FUND --
<S> <C> <C> <C> <C>
Sales................................................ 832,219 $ 8,712,669 1,912,457 $ 19,532,312
Issued to shareholders in payment of
distributions declared............................. 186,908 1,636,698 351,009 3,583,844
Redemptions.......................................... (1,134,285) (11,520,879) (4,968,090) (50,728,625)
---------- ------------- ---------- -------------
Net decrease..................................... (115,158) $ (1,171,512) (2,704,624) $ (27,612,469)
=========== =============== =========== ===============
WRIGHT U.S. TREASURY FUND --
Sales................................................ 375,317 $ 5,155,299 1,939,601 $ 26,166,981
Issued to shareholders in payment
of distributions declared.......................... 117,739 1,428,534 206,796 1,808,793
Redemptions.......................................... (712,088) (9,655,673) (877,670) (10,869,033)
---------- ------------- ---------- -------------
Net increase (decrease).......................... (219,032) $ (3,071,840) 1,268,727 $ 17,106,741
=========== =============== =========== ===============
WRIGHT TOTAL RETURN BOND FUND --
Sales................................................ 1,144,644 $ 15,124,938 565,212 $ 7,150,768
Issued to shareholders in payment
of distributions declared.......................... 166,014 1,880,175 265,206 3,324,077
Redemptions.......................................... (402,187) (5,219,615) (1,957,795) (24,523,119)
---------- ------------- ---------- -------------
Net increase (decrease).......................... 908,471 $ 11,785,498 (1,127,377) $ (14,048,274)
=========== =============== =========== ===============
<PAGE>
WRIGHT CURRENT INCOME FUND -- Standard Shares
Sales................................................ 1,200,531 $ 12,982,316 3,537,930 $ 36,704,939
Issued to shareholders in payment
of distributions declared.......................... 177,569 1,620,605 323,638 3,388,896
Redemptions.......................................... (503,389) (5,299,815) (2,892,503) (30,343,335)
---------- ------------- ---------- -------------
Net increase..................................... 874,711 $ 9,303,106 969,065 $ 9,750,500
=========== =============== =========== ===============
Period from July 7, 1997, the Inception
of Offering Institutional Shares,
WRIGHT CURRENT INCOME FUND FUND-- Institutional Shares to December 31, 1997
------------------------------------------
Sales................................................ - $ - 2,093,926 $ 20,960,187
Issued to shareholders in payment
of distributions declared.......................... 68,542 692,967 61,134 615,830
---------- ------------- ---------- -------------
Net increase..................................... 68,452 $ 692,967 2,155,060 $ 21,576,017
=========== =============== =========== ===============
</TABLE>
(6) INVESTMENT TRANSACTIONS
The Trust invests primarily in debt securities. The ability of the issuers
of the debt securities held by the Trust to meet their obligations may be
affected by economic developments in a specific industry or municipality.
Purchases and sales and maturities of investments, other than short-term
obligations, were as follows:
Six Months Ended June 30, 1998
Wright U.S. Treasury Wright Total
Money Market Fund Return Bond Fund
- ----------------------------------------------------------------------------
Purchases --
Non-U.S. Gov't Obligations $ - $ 7,469,541
============= =============
U.S. Gov't Obligations $ - $ 20,736,512
============= =============
Sales --
U.S. Gov't Obligations $ - $ 16,819,759
============= =============
Increases and decreases in each Fund's investment in its corresponding
Portfolio for the six month period ended June 30, 1998 were as follows:
WNTB WUSTB WCIF
- ----------------------------------------------------------------------
Increases $ 9,888,786 $ 5,168,260 $12,706,813
Decreases 14,266,368 10,563,885 6,287,880
- ----------------------------------------------------------------------
(7) FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES
The cost and unrealized appreciation (depreciation) in June 30, 1998, as
computed on a federal income tax basis, are as follows:
Wright Total Return
Bond Fund
- ----------------------------------------------------------------------
Aggregate cost............................ $ 87,975,846
============
Gross unrealized appreciation............. $ 3,119,288
Gross unrealized depreciation............. (53,908)
-------------
Net unrealized appreciation............... $ 3,065,380
============
- ----------------------------------------------------------------------
(8) LINE OF CREDIT
The Funds participates with other funds managed by Wright in a committed
$20 million unsecured line of credit agreement with a bank. The Funds may
temporarily borrow from the line of credit to satisfy redemption requests or
settle investment transactions. Interest is charged to each fund based on its
borrowings at an amount above the federal funds rate. In addition, a fee
computed at an annual rate of 0.10% on the average
<PAGE>
daily unused portion of the $20 million line of credit, is allocated among
the participating funds at the end of each quarter. The Funds did not have
significant borrowings or allocated fees during the period ended June 30, 1998.
(9) SUBSEQUENT EVENT
On July 1, 1998, the Wright U.S. Treasury Near Term Fund changed its name
to Wright US. Government Near Term Fund.
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 1998 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Selected Junior International
Blue Chip Blue Chip Blue Chip
Equities Portfolio Equities Portfolio Equities Portfolio
(WBC) (WJBC) (WIBC)
- ---------------------------------------------------------------------------------------------------------------------------
ASSETS:
Investments -
<S> <C> <C> <C>
Identified cost................................. $ 213,102,481 $ 33,781,384 $ 213,067,085
Unrealized appreciation......................... 64,347,874 2,254,149 69,960,942
------------ ------------ ------------
Total investments, at value (Note 1A)......... $ 277,450,355 $ 36,035,533 $ 283,028,027
Cash.............................................. 4,455 205,668 7,775,825
Receivable for investments sold................... - - 1,979,090
Dividends and interest receivable................. 239,678 39,775 401,136
Receivable for refundable foreign taxes withheld.. - - 264,910
Deferred organization expenses (Note 1C).......... 23,719 23,719 23,719
------------ ------------ ------------
Total Assets.................................. $ 277,718,207 $ 36,304,695 $ 293,472,707
------------ ------------ ------------
LIABILITIES:
Payable for investments purchased................. $ 4,425,607 $ - $ 7,718,294
Payable to Investment Adviser..................... - 17,779 -
Payable for open forward foreign currency exchange
contracts....................................... - - 23,080
Accrued expenses and other liabilities............ 6,013 5,442 62,524
------------ ------------ ------------
Total Liabilities............................... $ 4,431,620 $ 23,221 $ 7,803,898
------------ ------------ ------------
NET ASSETS APPLICABLE TO
INVESTORS' INTEREST IN PORTFOLIO.................. $ 273,286,587 $ 36,281,474 $ 285,668,809
============= ============= =============
SOURCES OF NET ASSETS:
Net proceeds from capital contributions and
withdrawals..................................... $ 208,938,713 $ 34,027,325 $ 215,764,038
Unrealized appreciation of investments
and foreign currency transactions (computed
on the basis of identified cost)................ 64,347,874 2,254,149 69,904,771
------------ ------------ ------------
Total......................................... $ 273,286,587 $ 36,281,474 $ 285,668,809
============= ============= =============
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 1998 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
U.S. Treasury U.S. Treasury Current Income
Near Term Portfolio Portfolio Portfolio
(WNTB) (WUSTB) (WCIF)
- ----------------------------------------------------------------------------------------------------------------------------
ASSETS:
Investments -
<S> <C> <C> <C>
Identified cost................................. $ 98,220,577 $ 67,237,079 $ 105,048,071
Unrealized appreciation......................... 1,167,601 3,323,387 1,839,729
------------ ------------ ------------
Total investments, at value (Note 1A)......... $ 99,388,178 $ 70,560,466 $ 106,887,800
Cash.............................................. 237,191 469,908 2,265
Interest receivable............................... 1,673,531 1,021,536 609,289
Deferred organization expenses (Note 1C).......... 22,805 22,794 22,619
Other assets...................................... - - 4,370
------------ ------------ ------------
Total Assets.................................. $ 101,321,705 $ 72,074,704 $ 107,526,343
------------ ------------ ------------
LIABILITIES:
Accrued expenses and other liabilities............ $ 7,305 $ 1,202 $ 10,299
------------ ------------ ------------
NET ASSETS APPLICABLE TO
INVESTORS' INTEREST IN PORTFOLIO.................. $ 101,314,400 $ 72,073,502 $ 107,516,044
============= ============= =============
SOURCES OF NET ASSETS:
Net proceeds from capital contributions and
withdrawals..................................... $ 100,146,799 $ 68,750,115 $ 105,676,315
Unrealized appreciation of investments
(computed on the basis of identified cost)...... 1,167,601 3,323,387 1,839,729
------------ ------------ ------------
Total......................................... $ 101,314,400 $ 72,073,502 $ 107,516,044
============= ============= =============
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
STATEMENTS OF OPERATIONS
For the Six Months Ended June 30, 1998 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Selected Junior International
Blue Chip Blue Chip Blue Chip
Equities Portfolio Equities Portfolio Equities Portfolio
(WBC) (WJBC) (WIBC)
- --------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1B):
Income -
<S> <C> <C> <C>
Dividends....................................... $ 1,887,029 $ 188,404 $ 3,403,229
Interest........................................ 121,121 20,909 216,546
Less: Foreign taxes............................. - - (377,160)
------------ ------------ ------------
Total income.................................. $ 2,008,150 $ 209,313 $ 3,242,615
------------ ------------ ------------
Expenses -
Investment Adviser fee (Note 2)................. $ 870,261 $ 100,549 $ 1,075,570
Administrator fee (Note 2)...................... 119,894 31,237 121,164
Compensation of Trustees not affiliated with the
Investment Adviser or Administrator........... 375 375 375
Custodian fee (Note 1D)......................... 29,840 19,027 181,304
Interest expense................................ - 117 17
Audit fees...................................... 24,700 19,800 24,700
Amortization of organization expenses (Note 1C). 2,861 2,862 2,861
Miscellaneous................................... 6 3,810 -
------------ ------------ ------------
Total expenses................................ $ 1,047,937 $ 177,777 $ 1,405,991
------------ ------------ ------------
Deduct -.......................................
Preliminary reduction of Investment Adviser fee
(Note 2)................................... $ - $ 19,580 $ -
Reduction of custodian fee (Note 1D).......... - 3,202 -
------------ ------------ ------------
Total deductions........................... $ - $ 22,782 $ -
------------ ------------ ------------
Net expenses............................. $ 1,047,937 $ 154,995 $ 1,405,991
------------ ------------ ------------
Net investment income................. $ 960,213 $ 54,318 $ 1,836,624
------------ ------------ ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Net realized gain on investment and foreign currency
transactions (identified cost basis)............ $ 22,714,500 $ 1,393,587 $ 5,866,057
Change in unrealized appreciation (depreciation) of
investments and translation of assets and liabilities in
foreign currencies.............................. (11,602,231) (1,233,170) 16,876,579
------------ ------------ ------------
Net realized and unrealized gain on investments
and foreign currency............................ $ 11,112,269 $ 160,417 $ 22,742,636
------------ ------------ ------------
Net increase in net assets from operations.... $ 12,072,482 $ 214,735 $ 24,579,260
============= ============= =============
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
STATEMENTS OF OPERATIONS
For the Six Months Ended June 30, 1998 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
U.S. Treasury U.S. Treasury Current Income
Near Term Portfolio Portfolio Portfolio
(WNTB) (WUSTB) (WCIF)
- -------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1B):
Income -
<S> <C> <C> <C>
Interest income................................. $ 3,264,710 $ 2,208,796 $ 3,572,341
------------ ------------ ------------
Expenses -
Investment Adviser fee (Note 2)................. $ 205,384 $ 144,582 $ 202,983
Administrator fee (Note 2)...................... 41,815 30,001 42,350
Compensation of Trustees not affiliated with the
Investment Adviser or Administrator........... 375 375 375
Custodian fees (Note 1D)........................ 24,274 10,520 22,882
Legal fees...................................... 61 60 -
Amortization of organization expenses (Note 1C). 2,877 2,886 2,887
Miscellaneous................................... 136 1,209 4,895
------------ ------------ ------------
Total expenses................................ $ 274,922 $ 189,633 $ 276,372
------------ ------------ ------------
Deduct -
Reduction of custodian fee (Note 1D)............ $ 3,250 $ 9,318 $ -
------------ ------------ ------------
Net expenses.................................. $ 271,672 $ 180,315 $ 276,372
------------ ------------ ------------
Net investment income................. $ 2,993,038 $ 2,028,481 $ 3,295,969
------------ ------------ ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Net realized gain (loss) on investment
transactions (identified cost basis)............ $ (351,200) $ 263,278 $ (68,152)
Net change in unrealized appreciation
of investments.................................. 188,705 638,869 103,908
------------ ------------ ------------
Net realized and unrealized gain (loss) on investments $ (162,495) $ 902,147 $ 35,756
------------ ------------ ------------
Net increase in net assets from operations.... $ 2,830,543 $ 2,930,628 $ 3,331,725
============= ============= =============
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
STATEMENTS OF CHANGES IN NET ASSETS
================================================================================
<TABLE>
<CAPTION>
Selected Blue Chip Junior Blue Chip
Equities Portfolio Equities Portfolio
(WBC) (WJBC)
Year Ended Dec. 31 Year Ended Dec. 31
--------------------------------------------------------
1998(1) 1997(2) 1998(1) 1997(2)
- ---------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From operations -
<S> <C> <C> <C> <C>
Net investment income.................................. $ 960,213 $ 1,748,322 $ 54,318 $ 135,453
Net realized gain on investments....................... 22,714,500 19,731,212 1,393,587 1,729,605
Change in unrealized appreciation (depreciation)
of investments....................................... (11,602,231) 30,193,816 (1,233,170) 1,275,330
------------ ------------ ------------ ------------
Net increase in net assets from operations.......... $ 12,072,482 $ 51,673,350 $ 214,735 $ 3,140,388
------------ ------------ ------------ ------------
Capital transactions -
Contributions.......................................... $ 24,432,847 $ 249,862,313 $ 6,135,853 $ 34,412,901
Withdrawals............................................ (22,710,873) (42,043,542) (3,558,465) (4,063,948)
------------ ------------ ------------ ------------
Increase in net assets
resulting from capital transactions.................... $ 1,721,974 $ 207,818,771 $ 2,577,388 $ 30,348,953
------------ ------------ ------------ ------------
Net increase in net assets............................... $ 13,794,456 $ 259,492,121 $ 2,792,123 $ 33,489,341
NET ASSETS:
At beginning of period................................... 259,492,131 10 33,489,351 10
------------ ------------ ------------ ------------
At end of period......................................... $273,286,587 $ 259,492,131 $ 36,281,474 $ 33,489,351
============= ============= ============= =============
<FN>
(1) For the six months ended June 30,1998 (unaudited).
(2) For the period from the start of business, May 2, 1997 to December 31, 1997.
</FN>
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
STATEMENTS OF CHANGES IN NET ASSETS
================================================================================
<TABLE>
<CAPTION>
International Blue Chip U.S. Treasury
Equities Portfolio Near Term Portfolio
(WIBC) (WNTB)
Year Ended Dec. 31 Year Ended Dec. 31
----------------------------------------------------------
1998(1) 1997(2) 1998(1) 1997(2)
- ----------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From operations -
<S> <C> <C> <C> <C>
Net investment income.................................. $ 1,836,624 $ 1,773,934 $ 2,993,038 $ 4,610,880
Net realized gain (loss) on investments................ 5,866,057 14,916,066 (351,200) (75,865)
Change in unrealized appreciation (depreciation)
of investments....................................... 16,876,579 (6,279,794) 188,705 771,013
------------ ------------ ------------ ------------
Net increase in net assets from operations.......... $ 24,579,260 $ 10,410,296 $ 2,830,543 $ 5,306,028
------------ ------------ ------------ ------------
Capital transactions -
Contributions.......................................... $ 75,941,629 $ 388,886,471 $ 9,888,786 $136,940,825
Withdrawals............................................ (71,898,700) (142,250,157) (14,266,368) (39,385,424)
------------ ------------ ------------ ------------
Increase (decrease) in net assets
resulting from capital transactions.................... $ 4,042,929 $ 246,636,314 $ (4,377,582) $ 97,555,401
------------ ------------ ------------ ------------
Net increase (decrease) in net assets.................... $ 28,622,189 $ 257,046,610 $ (1,547,039) $102,861,429
NET ASSETS:
At beginning of period................................... 257,046,620 10 102,861,439 10
------------ ------------ ------------ ------------
At end of period......................................... $285,668,809 $ 257,046,620 $101,314,400 $102,861,439
============= ============= ============= =============
<FN>
(1) For the six months ended June 30,1998 (unaudited).
(2) For the period from the start of business, May 2, 1997 to December 31, 1997.
</FN>
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
STATEMENTS OF CHANGES IN NET ASSETS
================================================================================
<TABLE>
<CAPTION>
U.S. Treasury Current Income
Portfolio Portfolio
(WUSTB) (WCIF)
Year Ended Dec. 31 Year Ended Dec. 31
-------------------------------------------------------
1998(1) 1997(2) 1998(1) 1997(2)
- --------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From operations -
<S> <C> <C> <C> <C>
Net investment income.................................. $ 2,028,481 $ 2,558,433 $ 3,295,969 $ 4,096,150
Net realized gain (loss) on investments................ 263,278 - (68,152) (56,605)
Change in unrealized appreciation
of investments....................................... 638,869 3,393,339 103,908 2,551,399
------------ ------------ ------------ ------------
Net increase in net assets from operations.......... $ 2,930,628 $ 5,951,772 $ 3,331,725 $ 6,590,944
------------ ------------ ------------ ------------
Capital transactions -
Contributions.......................................... $ 5,168,260 $ 76,417,800 $ 12,706,813 $117,569,110
Withdrawals............................................ (10,563,885) (7,831,083) (6,287,880) (26,394,678)
------------ ------------ ------------ ------------
Increase (decrease) in net assets
resulting from capital transactions.................... $ (5,395,625) $ 68,586,717 $ 6,418,933 $ 91,174,432
------------ ------------ ------------ ------------
Net increase (decrease) in net assets.................... $ (2,464,997) $ 74,538,489 $ 9,750,658 $ 97,765,376
NET ASSETS:
At beginning of period................................... 74,538,499 10 97,765,386 10
------------ ------------ ------------ ------------
At end of period......................................... $ 72,073,502 $ 74,538,499 $107,516,044 $ 97,765,386
============= ============= ============= =============
<FN>
(1) For the six months ended June 30,1998 (unaudited).
(2) For the period from the start of business, May 2, 1997 to December 31, 1997.
</FN>
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
WRIGHT MANAGED EQUITY TRUST PORTFOLIOS
================================================================================
<TABLE>
<CAPTION>
Selected Blue Chip Junior Blue Chip International Blue Chip
Equities Portfolio Equities Portfolio Equities Portfolio
SUPPLEMENTARY DATA (WBC) (WJBC) (WIBC)
- ------------------------------------------------------------------------------------------------------------------------------
Year Ended Dec. 31 Year Ended Dec. 31 Year Ended Dec. 31
1998(2) 1997(3) 1998(2) 1997(3) 1998(2) 1997(3)
Ratios (As of percentage of average daily net assets)++:
<S> <C> <C> <C> <C> <C> <C>
Net expenses(1) ......................... 0.77%+ 0.66%+ 0.87%+ 0.48%+ 1.01%+ 0.90%+
Net investment income.................... 0.70%+ 1.08%+ 0.30%+ 0.99%+ 1.32%+ 0.95%+
Portfolio Turnover.......................... 27% 28% 32% 36% 30% 37%
Net assets, end of period (000 omitted)..... $273,287 $259,492 $ 36,281 $ 33,489 $285,669 $257,047
<FN>
++ For the six months ended June 30, 1998 and the period from the start of
business, May 2, 1997 to December 31, 1997, the operating expenses of WJBC
reflect a reduction of the investment adviser fee. Had such action not been
taken, the ratios would have been as follows:
1998(2) 19973)
------- -------
Ratios (As of percentage of average daily net assets):
Expenses 0.97%+ 0.80%+
Net investment income 0.20%+ 0.67%+
+ Annualized.
(1)The expense ratios for the Portfolios have been adjusted to reflect a change
in reporting requirements. The new reporting guidelines require each
Portfolio to increase its expense ratio by the effect of any offset
arrangements with its service providers. The computation of net expenses to
average daily net assets reported above is computed without consideration of
credits in such offset arrangements. If these credits were considered, the
ratio of net expenses to average daily net assets would have been reduced to
0.85% for the six months ended June 30, 1998 and 0.45% for the period from
the start of business, May 2, 1997 to December 31, 1997, for WJBC.
(2)For the six months ended June 30, 1998 (unaudited).
(3)For the period from the start of business, May 2, 1997 to December 31, 1997.
</FN>
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
WRIGHT MANAGED INCOME TRUST PORTFOLIOS
================================================================================
<TABLE>
<CAPTION>
U.S. Treasury U.S. Treasury Current Income
Near Term Portfolio Portfolio Portfolio
SUPPLEMENTARY DATA (WNTB) (WUSTB) (WCIF)
- ----------------------------------------------------------------------------------------------------------------------------
Year Ended Dec. 31 Year Ended Dec. 31 Year Ended Dec. 31
1998(2) 1997(3) 1998(2) 1997(3) 1998(2) 1997(3)
Ratios (As of percentage of average daily net assets):
<S> <C> <C> <C> <C> <C> <C>
Net expenses(1) ......................... 0.54%+ 0.46%+ 0.52%+ 0.56%+ 0.55%+ 0.48%+
Net investment income.................... 5.86%+ 6.24%+ 5.61%+ 6.11%+ 6.52%+ 6.66%+
Portfolio Turnover.......................... 12% 0% 10% 0% 1% 7%
Net assets, end of period (000 omitted)..... $101,314 $102,861 $ 72,074 $ 74,536 $107,516 $ 97,765
<FN>
+ Annualized.
(1)The expense ratios for the Portfolios have been adjusted to reflect a change
in reporting requirements. The new reporting guidelines require each
Portfolio to increase its expense ratio by the effect of any offset
arrangements with its service providers. The computation of net expenses to
average daily net assets reported above is computed without consideration of
credits in such offset arrangements. If these credits were considered, the
ratio of net expenses to average daily net assets would have been reduced to
0.53% and 0.45% for the six months ended June 30, 1998 and the period from
the start of buiness, May 2, 1997 to December 31, 1997, for WNTB,
respectively and 0.50% and 0.41% for the six months ended June 30, 1998 and
the period from the start of buiness, May 2, 1997 to December 31, 1997, for
WUSTB, respectively.
(2)For the six months ended June 30, 1998 (unaudited).
(3)For the period from the start of business, May 2, 1997 to December 31, 1997.
</FN>
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
NOTES TO FINANCIAL STATEMENTS (Unaudited)
================================================================================
(1) SIGNIFICANT ACCOUNTING POLICIES
The Wright Blue Chip Master Portfolio Trust (the Trust), issuer of Selected
Blue Chip Equities Portfolio (Selected Portfolio), Junior Blue Chip Equities
Portfolio (Junior Portfolio), International Blue Chip Equities Portfolio
(International Portfolio), U.S. Treasury Near Term Portfolio (Term Portfolio),
U.S. Treasury Portfolio (Treasury Portfolio), and Current Income Portfolio
(Income Portfolio), collectively the Portfolios, are registered under the
Investment Company Act of 1940 as non-diversified open-end management investment
companies which were organized as trusts under the laws of the State of New York
on March 18, 1997. The Declaration of Trust permits the Trustees to issue
interests in the Portfolios. The following is a summary of significant
accounting policies of the Portfolios. The policies are in conformity with
generally accepted accounting principles.
A. Investment Valuations - Securities listed on securities exchanges or in the
NASDAQ National Market are valued at closing sale prices. Unlisted or
listed securities, for which closing sale prices are not available, are
valued at the mean between latest bid and asked prices. Short-term
obligations maturing in sixty days or less are valued at amortized cost,
which approximates market value. Securities for which market quotations are
unavailable, are appraised at their fair value as determined in good faith
by or at the direction of the Trustees.
B. Foreign Currency Translation - Investment security valuations, other
assets, and liabilities initially expressed in foreign currencies are
translated each business day into U.S. dollars based upon current exchange
rates. Purchases and sales of foreign investment securities and income and
expenses are translated into U.S. dollars based upon currency exchange
rates prevailing on the respective dates of such transactions.
The Trust does not isolate that portion of the results of operations
resulting from changes in foreign exchange rates on investments from the
fluctuations arising from changes in market prices of securities held. Such
fluctuations are included with the net realized and unrealized gain or loss
from investments.
C. Deferred Organization Expenses - Costs incurred by a Portfolio in
connection with its organization are being amortized on the straight-line
basis over five years beginning on the date each Portfolio commenced
operations.
D. Expense Reductions - The Portfolios have entered into an arrangement with
its custodian whereby interest earned on uninvested cash balances are used
to offset custodian fees. All significant reductions are reported as a
reduction of expenses in the Statement of Operations.
E. Income Taxes - The Portfolios are treated as partnerships for federal
tax purposes. No provision is made by the Portfolios for federal or state
taxes on any taxable income of the Portfolios because each investor in
the Portfolios is ultimately responsible for the payment of any taxes on
its share of such income. Since some of the Portfolios' investors are
regulated investment companies that invest all or substantially all of
their assets in the Portfolios, the Portfolios normally must satisfy the
applicable source of income and diversification requirements (under the
Internal Revenue Code) in order for their respective investors to satisfy
them. The Portfolios will allocate at least annually among their
respective investors each investor's distributive share of the
Portfolios' net taxable investment income, net realized capital gains
and any other items of income, gain, loss, deductions or credit.
F. Use of Estimates - The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported
amounts of revenue and expense during the reporting period. Actual results
could differ from those estimates.
G. Other - Investment transactions are accounted for on the date the
investments are purchased or sold. Dividend income is recorded on the
ex-dividend date. However, if the ex-dividend date has passed, certain
dividends from foreign securities are recorded as the Portfolio is informed
of the ex-dividend
<PAGE>
date. Interest income consists of interest accrued and
discount earned (including both original issue and market discount) and
amortization of premium or discount on long-term debt securities when
required for federal income tax purposes. The interest income is accrued
ratably to the date of maturity on the investments of the Portfolios.
H. Forward Foreign Currency Contracts - The International Portfolio may enter
into forward foreign currency exchange contracts for the purchase or sale
of a specific foreign currency at a fixed price on a future date. Risks may
arise upon entering these contracts from the potential inability of
counterparties to meet the terms of their contracts and from unanticipated
movements in the value of a foreign currency relative to the U.S. dollar.
The International Portfolio will enter into forward contracts for hedging
purposes in connection with purchases and sales of securities denominated
in foreign currencies. The forward foreign currency exchange contracts are
adjusted by the daily forward exchange rate of the underlying currency and
any gains or losses are recorded for financial statement purposes as
unrealized until such time as the contracts have been closed or offset.
I. Interim Financial Information - The interim financial statements relating
to June 30, 1998 and for the six month period then ended have not been
audited by independent certified public accountants, but in the opinion of
the Trust's management, reflect all adjustments, consisting only of
normally recurring adjustments, necessary for the fair presentation of the
financial statements.
(2) INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The Trust has engaged The Winthrop Corporation (Winthrop) to act as
investment adviser to the Funds pursuant to the respective Investment Advisory
Contracts. Pursuant to a service agreement between Winthrop and its wholly-owned
subsidiary, Wright Investors' Service, Inc. (Wright), Wright furnishes each Fund
with investment management, investment advisory, and other services. For its
services, Wright is compensated based upon a percentage of average daily net
assets, which rate is adjusted as average daily net assets exceed certain
levels. For the six month period ended June 30, 1998, the effective annual rate
was 0.63% for the Selected Portfolio, 0.55% for the Junior Portfolio, 0.77% for
the International Portfolio, 0.40% for the Term Portfolio, 0.40% for the
Treasury Portfolio, and 0.40% for the Income Portfolio. To enhance the net
income of the Fund, Wright made a preliminary reduction of its investment
adviser fee by $19,580 for the Junior Portfolio.
The Trust has also engaged Eaton Vance Management (Eaton Vance) to act as
administrator of the Trust. Under the Administration Agreement, Eaton Vance is
responsible for managing the business affairs of the Trust and is compensated
based upon a percentage of average daily net assets which rate is reduced as
average daily net assets exceed certain levels. For the six month period ended
June 3, 1998, the effective annual rate was 0.09% for the Selected Portfolio,
0.17% for the Junior Portfolio, 0.09% for the International Portfolio, 0.08% for
the Term Portfolio, 0.08% for the Treasury Portfolio, and 0.08% for the Income
Portfolio.
The Trust has also engaged Eaton Vance Management (Eaton Vance) to act as
administrator of the Trust. Under the Administration Agreement, Eaton Vance is
responsible for managing the business affairs of the Trust and is compensated
based upon a percentage of average daily net assets which rate is reduced as
average daily net assets exceed certain levels. For the six month period ended
June 30, 1998, the effective annual rate was 0.07% for the Selected Portfolio,
0.17% for the Junior Portfolio, 0.09% for the International Portfolio, 0.08% for
the Term Portfolio, 0.08% for the Treasury Portfolio, and 0.08% for the Income
Portfolio.
Certain of the Trustees and officers of the Portfolio are Trustees or
officers of the above organizations. Except as to Trustees of the Portfolios who
are not affiliated with Wright, Trustees and officers receive remuneration for
their services to the Portfolios out of the fees paid to Wright.
<PAGE>
(3) INVESTMENTS
The Term Portfolio, Treasury Portfolio, and Income Portfolio invest
primarily in debt securities. The ability of the issuers of these debt
securities held by the Portfolios to meet their obligations may be affected by
economic developments in a specific industry or municipality. Purchases and
sales of investments, other than U.S. Government securities and short-term
obligations, for the six month period ended June 30, 1998 were as follows:
<TABLE>
<CAPTION>
Selected Junior International U.S. Treasury U.S. Current
Blue Chip Blue Chip Blue Chip Near Term Treasury Income
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
- -----------------------------------------------------------------------------------------------------------------------------
Purchases -
<S> <C> <C> <C> <C> <C> <C>
Non-U.S. Gov't Obligations $ 77,925,415 $ 14,676,420 $ 82,641,552 $ -- $ -- $ --
============ ============ ============ ============ ============ ============
U.S. Gov't Obligations $ -- $ -- $ -- $ 17,704,961 $ 4,898,031 $ 17,618,065
============ ============ ============ ============ ============ ============
Sales -
Non-U.S. Gov't Obligations $ 72,470,446 $ 11,706,894 $ 81,956,706 $ -- $ -- $ --
============ ============ ============ ============ ============ ============
U.S. Gov't. Obligations $ -- $ -- $ -- $ 11,944,596 $ 7,549,381 $ 1,497,396
============ ============ ============ ============ ============ ============
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(4) FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES
The cost and unrealized appreciation (depreciation) of the investment
securities owned at June 30, 1998, as computed on a federal income tax basis,
are as follows:
<TABLE>
<CAPTION>
Selected Junior International U.S. Treasury U.S. Current
Blue Chip Blue Chip Blue Chip Near Term Treasury Income
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Aggregate cost $213,102,481 $ 33,781,384 $213,067,085 $ 98,220,577 $ 67,237,079 $105,048,071
============ ============ ============ ============ ============ ============
Gross unrealized appreciation $ 71,833,659 $ 4,943,064 $ 81,669,835 $ 1,247,030 $ 3,358,006 $ 2,075,918
Gross unrealized depreciation (7,485,785) (2,688,915) (11,708,893) (79,429) (34,619) (236,189)
----------- ----------- ----------- ----------- ----------- -----------
Net unrealized appreciation $ 64,347,874 $ 2,254,149 $ 69,960,942 $ 1,167,601 $ 3,323,387 $ 1,839,729
============ ============ ============ ============ ============ ============
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
(5) FINANCIAL INSTRUMENTS
The Portfolios may trade in financial instruments with off-balance sheet
risk in the normal course of their investing activities in order to manage
exposure to market risks such as interest rates and foreign currency exchange
rates. These financial instruments include forward foreign currency contracts
for the International Portfolio. The notional or contractual amounts of these
instruments represent the investment the Portfolio has in particular classes of
financial instruments and does not necessarily represent the amounts potentially
subject to risk. The measurement of the risks associated with these instruments
is meaningful only when all related and offsetting transactions are considered.
<PAGE>
As of June 30, 1998, the International Portfolio had the following forward
foreign currency exchange contracts open:
<TABLE>
<CAPTION>
SALES
- -----
Settlement Contracts In Exchange for Contracts Net Unrealized
Date Currency to Deliver (U.S. Dollars) at Value Depreciation
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
7/01/98 Great British Pound 52,395 $ 87,237 $ 87,494 $ 257
7/02/98 Great British Pound 212,574 353,723 354,959 1,236
7/06/98 Singapore Dollar 1,748,059 1,017,378 1,038,965 21,587
------------ ------------ ------------
$ 1,458,338 $ 1,481,418 $ 23,080
=========== =========== ===========
</TABLE>
At June 30, 1998, the International Portfolio had sufficient cash and/or
securities to cover any commitments under these contracts.
(6) RISKS ASSOCIATED WITH FOREIGN INVESTMENTS
The International Portfolio's investing in securities issued by companies whose
principal business activities are outside the United States may involve
significant risks not present in domestic investments. For example, there is
generally less publicly available information about foreign companies,
particularly those not subject to the disclosure and reporting requirements of
the U.S. securities laws. Foreign issuers are generally not bound by uniform
accounting, auditing, and financial reporting requirements and standards of
practice comparable to those applicable to domestic issuers. Investments in
foreign securities also involve the risk of possible adverse changes in
investment or exchange control regulations, expropriation or confiscatory
taxation, limitation on the removal of funds or other assets of International
Portfolio, political or financial instability or diplomatic and other
developments which could affect such investments. Foreign stock markets, while
growing in volume and sophistication, are generally not as developed as those in
the United States, and securities of some foreign issuers (particularly those
located in developing countries) may be less liquid and more volatile than
securities of comparable U.S. companies. In general, there is less overall
governmental supervision and regulation of foreign securities markets,
broker-dealers, and issuers than in the United States.
Settlement of securities transactions in foreign countries may be delayed
and is generally less frequent than in the United States, which could affect the
liquidity of International Portfolio's assets. International Portfolio may be
unable to sell securities where the registration process is incomplete and may
experience delays in receipt of dividends.
(7) LINE OF CREDIT
The Funds participate with other funds managed by Wright in a committed $20
million unsecured line of credit agreement with a bank. The Funds may
temporarily borrow from the line of credit to satisfy redemption requests or
settle investment transactions. Interest is charged to each Fund based on its
borrowings at an amount above the federal funds' rate. In addition, a fee
computed at an annual rate of 0.10% on the average daily unused portion of the
$20 million line of credit, is allocated among the participating funds at the
end of each quarter. The Funds did not have significant borrowings or allocated
fees during the period ended June 30, 1998.
(8) SUBSEQUENT EVENT
On July 1, 1998, the U.S. Treasury Near Term Portfolio changed its name to
U.S. Government Near Term Portfolio.
<PAGE>
WRIGHT MAJOR BLUE CHIP EQUITIES FUND (WMBC)
PORTFOLIO OF INVESTMENTS
June 30, 1998 (UNAUDITED)
===============================================================================
Shares Value
-------- -------
Equity Interests -- 98.0%
APPAREL -- 1.9%
VF Corp............................. 9,900 $ 509,850
-----------
AUTOMOTIVE -- 8.4%
Chrysler Corporation................ 9,800 $ 552,475
Dana Corporation.................... 12,000 642,000
Eaton Corp.......................... 6,800 528,700
Johnson Controls.................... 8,900 508,969
-----------
$ 2,232,144
-----------
CHEMICALS -- 9.2%
Air Products & Chemicals............ 13,800 $ 552,000
Morton International Inc............ 14,200 355,000
PPG Industries...................... 7,000 486,938
Rohm & Haas Co...................... 4,700 488,506
Sherwin Williams Co................. 16,500 546,563
-----------
$ 2,429,007
-----------
CONSTRUCTION -- 1.8%
Caterpillar Tractor Inc............. 9,000 $ 475,875
-----------
DIVERSIFIED -- 2.7%
Tyco International Ltd.............. 11,400 $ 718,200
-----------
ELECTRONICS -- 15.9%
Adobe Systems Inc................... 10,600 $ 449,838
Compaq Computer..................... 18,400 522,100
Computer Associates Int'l. Inc...... 10,800 600,075
EMC Corp./Mass*..................... 11,900 533,269
Harris Corp. Inc.................... 11,800 527,313
International Business Machines..... 4,300 493,694
Raytheon Co......................... 9,700 573,511
Sun Microsystems, Inc*.............. 11,200 486,500
-----------
$ 4,186,300
-----------
FINANCIAL -- 16.7%
American Express Co................. 5,100 $ 581,400
American International Group........ 4,550 664,300
BB&T Corporation.................... 9,400 635,675
Fannie Mae.......................... 8,800 534,600
Franklin Resources Inc.............. 8,000 432,000
Jefferson-Pilot Corp................ 9,200 533,025
Key Corp. (New)..................... 13,300 473,813
MBIA, Inc........................... 7,100 531,612
-----------
$ 4,386,425
-----------
MACHINERY & EQUIPMENT -- 8.0%
Deere & Co.......................... 10,400 $ 549,900
Dover Corp.......................... 15,800 541,150
Ingersoll Rand Co................... 11,250 495,703
Pitney-Bowes Inc.................... 10,800 519,750
-----------
$ 2,106,503
-----------
METAL PRODUCERS -- 1.9%
Nucor Corp.......................... 10,900 $ 501,400
-----------
METAL PRODUCTS MANUFACTURERS -- 2.0%
Illinois Tool Works Inc............. 7,700 $ 513,494
-----------
OIL, GAS, COAL & RELATED SERVICES -- 4.4%
Exxon Corp.......................... 9,100 $ 648,944
Mobil Corp.......................... 6,700 513,387
-----------
$ 1,162,331
-----------
PRINTING & PUBLISHING -- 2.1%
Gannett Co. Inc..................... 7,800 $ 554,288
-----------
RECREATION -- 2.0%
Hasbro Inc.......................... 13,400 $ 526,788
-----------
<PAGE>
RETAILERS -- 13.1%
Costco Companies Inc*............... 9,800 $ 618,013
Gap, Inc. (The)..................... 9,900 610,088
May Dept. Stores.................... 9,700 635,350
Rite-Aid Corporation................ 16,400 616,025
Toys R Us, Inc*..................... 16,800 395,850
Wal-Mart Stores..................... 9,500 577,124
-----------
$ 3,452,450
-----------
TRANSPORTATION -- 2.2%
Southwest Airlines Inc.............. 9,900 $ 589,535
-----------
UTILITIES -- 3.4%
Alltel Corporation.................. 12,900 $ 599,850
Duke Energy Corp.................... 5,000 296,250
-----------
$ 896,100
-----------
MISCELLANEOUS -- 2.3%
Avery-Dennison Corp................. 11,400 $ 612,750
-----------
TOTAL EQUITY INTERESTS -- 98.0%
(identified cost, $18,999,450) $ 25,853,440
Reserve Funds -- 3.5%
Face Amount
-----------
American Express Corp., 5.981%, 7/1/98
(at amortized cost)...............$915,000 $ 915,000
-----------
TOTAL INVESTMENTS -- 101.5%
(identified cost, $19,914,450) $ 26,768,440
OTHER ASSETS,
LESS LIABILITIES -- (1.5)% (403,699)
-----------
NET ASSETS -- 100% $ 26,364,741
============
* Non-income-producing security.
<PAGE>
WRIGHT TOTAL RETURN BOND FUND (WTRB)
PORTFOLIO OF INVESTMENTS
June 30, 1998 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Face Coupon Maturity Market Current Yield To
Amount Description Rate Date Price Value Yield(1) Maturity(1)
- -------------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS
FINANCIAL
<S> <C> <C> <C> <C> <C> <C> <C>
$ 1,100,000 Ameritech Cap 6.150% 01/15/2008 $ 99.498 $ 1,094,478 6.18% 6.09%
2,000,000 Associates Corp. 6.450% 10/15/2001 101.072 2,021,440 6.38% 5.98%
2,900,000 Ford Motor Credit 6.000% 01/14/2003 99.434 2,883,586 6.03% 6.09%
2,825,000 General Elec. Capital Corp. 6.500% 11/01/2006 103.251 2,916,841 6.30% 5.96%
2,000,000 GMAC 6.375% 10/15/2004 100.592 2,011,840 6.34% 6.09%
2,500,000 IBM Credit Corp. 6.200% 08/28/2000 100.400 2,685,700 6.18% 5.83%
1,000,000 J.P. Morgan 6.875% 01/15/2007 103.363 1,033,630 6.65% 6.26%
INDUSTRIALS
$ 2,400,000 McDonald's Corp. 6.500% 08/01/2007 $103.975 $ 2,495,400 6.25% 5.99%
2,000,000 Walt Disney Co. 6.750% 03/30/2006 104.496 2,089,920 6.46% 5.99%
2,000,000 Warner-Lambert Co. 5.750% 01/15/2003 99.216 1,984,320 5.80% 5.83%
UTILITIES
$ 1,500,000 New York Telecom 6.000% 04/15/2008 $ 98.178 $ 1,472,670 6.11% 6.21%
2,000,000 SBC Communications Inc. 6.625% 11/01/2009 102.621 2,052,420 6.46% 6.24%
955,000 Tennessee Valley Authority 6.000% 03/15/2013 100.531 960,071 5.97% 5.99%
----------
Total Corporate Bonds (identified cost, $25,428,334)-- 27.7% $25,702,316
GOVERNMENT INTERESTS
U.S. GOVERNMENT AGENCIES
$ 1,000,000 Federal Home Loan Mtg. Corp. 7.010% 11/23/2007 $ 99.875 $ 998,750 7.02% 5.85%
615,000 Federal Home Loan Mtg. Corp. 5.750% 04/15/2008 99.469 611,734 5.78% 5.80%
500,000 Federal Home Loan Mtg. Corp. 6.125% 04/15/2008 98.500 492,500 6.22% 6.34%
1,250,000 Federal National Mtg. Assn. 5.625% 03/15/2001 99.844 1,248,050 5.63% 5.65%
2,000,000 Federal National Mtg. Assn. 6.400% 11/09/2004 100.922 2,018,440 6.34% 6.16%
1,000,000 Federal National Mtg. Assn. 5.750% 06/15/2005 99.891 998,910 5.76% 5.74%
1,500,000 Federal National Mtg. Assn. 6.560% 11/26/2007 101.562 1,523,430 6.46% 6.31%
1,000,000 Federal National Mtg. Assn. 6.170% 01/15/2008 99.500 995,000 6.20% 6.16%
1,315,000 Federal National Mtg. Assn. 5.750% 02/15/2008 99.531 1,308,833 5.78% 5.82%
1,000,000 Federal National Mtg. Assn. 6.000% 05/15/2008 101.375 1,013,750 5.92% 5.81%
587,240 GNMA 6.5% 436214 6.500% 02/15/2013 101.000 593,113 6.44% 6.27%
745,243 GNMA 6.5% 376400 6.500% 02/15/2024 100.156 746,406 6.49% 6.64%
1,151,857 GNMA 6.5% 422506 6.500% 03/15/2026 99.906 1,150,775 6.51% 6.63%
1,476,562 GNMA 6.5% 460726 6.500% 12/15/2027 99.781 1,473,328 6.51% 6.63%
994,700 GNMA 7.0% 427199 7.000% 12/15/2027 101.593 1,010,547 6.89% 6.63%
1,808,981 GNMA 6.5% 458762 6.500% 01/15/2028 99.781 1,805,020 6.51% 6.63%
<PAGE>
U.S. TREASURIES
$ 1,750,000 U.S. Treasury Bond 8.250% 05/15/2005 $104.641 $ 1,831,216 7.88% 7.38%
9,475,000 U.S. Treasury Bond 7.250% 05/15/2016 117.156 11,100,531 6.19% 5.72%
1,300,000 U.S. Treasury Bond 6.250% 08/15/2023 107.062 1,391,806 5.84% 5.71%
3,500,000 U.S. Treasury Bond 6.000% 02/15/2026 104.031 3,641,085 5.77% 5.71%
2,000,000 U.S. Treasury Note 5.875% 11/15/1999 100.453 2,009,060 5.85% 5.51%
3,300,000 U.S. Treasury Note 5.375% 01/31/2000 99.766 3,292,278 5.39% 5.54%
1,900,000 U.S. Treasury Note 5.875% 06/30/2000 100.703 1,913,357 5.83% 5.51%
2,500,000 U.S. Treasury Note 5.750% 10/31/2000 100.469 2,511,725 5.72% 5.53%
3,000,000 U.S. Treasury Note 7.750% 02/15/2001 105.359 3,160,770 7.36% 5.54%
1,700,000 U.S. Treasury Note 7.500% 02/15/2005 110.687 1,881,679 6.78% 5.56%
5,725,000 U.S. Treasury Note 6.500% 05/15/2005 105.547 6,042,566 6.16% 5.52%
4,100,000 U.S. Treasury Note 6.500% 08/15/2005 105.531 4,326,771 6.16% 5.56%
4,000,000 U.S. Treasury Note 6.500% 10/15/2006 106.187 4,247,480 6.12% 5.57%
----------
Total Government Interests (identified cost, $62,547,512)-- 70.6% $65,338,910
Total Investments (identified cost, $87,975,846)-- 98.3% $91,041,226
Other Assets, Less Liabilities -- 1.7% 1,548,888
----------
Net Assets -- 100.0% $92,590,114
=============
Average Maturity -- 8.7 Years (1)
(1) Unaudited.
</TABLE>
<PAGE>
WRIGHT U.S. TREASURY MONEY MARKET FUND (WTMM)
PORTFOLIO OF INVESTMENTS
June 30, 1998 (UNAUDITED)
================================================================================
Face Interest Maturity
Amount Issuer Rate Date Value
- --------------------------------------------------------------------------------
$2,000,000 U.S. Treasury Note 5.125% 11/30/98 $2,004,902
2,000,000 U.S. Treasury Note 5.125% 11/30/98 2,006,884
2,000,000 U.S. Treasury Note 5.500% 11/15/98 2,014,049
1,000,000 U.S. Treasury Note 5.500% 11/15/98 1,007,025
1,000,000 U.S. Treasury Note 5.500% 02/28/99 1,018,281
1,000,000 U.S. Treasury Note 5.500% 02/28/99 1,018,384
2,000,000 U.S. Treasury Note 5.500% 02/28/99 2,036,766
1,000,000 U.S. Treasury Note 5.500% 02/28/99 1,018,384
5,000,000 U.S. Treasury Note 4.750% 09/30/98 5,051,759
2,000,000 U.S. Treasury Note 5.125% 12/31/98 1,995,438
2,000,000 U.S. Treasury Note 5.125% 12/31/98 1,997,699
1,000,000 U.S. Treasury Note 5.125% 12/31/98 998,499
2,350,000 U.S. Treasury Bills 4.870% 07/23/98 2,343,007
350,000 U.S. Treasury Bills 4.920% 07/23/98 348,948
1,500,000 U.S. Treasury Bills 4.665% 07/23/98 1,495,724
400,000 U.S. Treasury Bills 5.025% 08/20/98 397,208
775,000 U.S. Treasury Bills 5.020% 08/20/98 769,597
3,225,000 U.S. Treasury Bills 4.850% 08/20/98 3,203,276
2,640,000 U.S. Treasury Bills 4.960% 09/17/98 2,611,629
500,000 U.S. Treasury Bills 4.880% 09/17/98 494,713
1,450,000 U.S. Treasury Bills 5.150% 10/15/98 1,428,012
500,000 U.S. Treasury Bills 5.150% 10/15/98 492,419
2,400,000 U.S. Treasury Bills 5.170% 10/15/98 2,363,466
400,000 U.S. Treasury Bills 5.050% 10/15/98 394,052
1,400,000 U.S. Treasury Bills 5.010% 11/12/98 1,373,893
1,450,000 U.S. Treasury Bills 5.030% 11/12/98 1,422,852
4,500,000 U.S. Treasury Bills 5.040% 07/02/98 4,499,370
800,000 U.S. Treasury Bills 4.920% 07/02/98 799,890
2,000,000 U.S. Treasury Bills 4.510% 07/02/98 1,999,750
3,500,000 U.S. Treasury Bills 4.880% 07/09/98 3,496,204
1,650,000 U.S. Treasury Bills 4.570% 07/09/98 1,648,324
3,000,000 U.S. Treasury Bills 4.820% 07/16/98 2,993,965
$ 250,000 U.S. Treasury Bills 4.800% 07/16/98 $ 249,500
400,000 U.S. Treasury Bills 4.650% 07/16/98 399,225
4,150,000 U.S. Treasury Bills 4.915% 07/30/98 4,133,569
550,000 U.S. Treasury Bills 4.960% 07/30/98 547,803
1,040,000 U.S. Treasury Bills 5.030% 08/06/98 1,034,769
760,000 U.S. Treasury Bills 5.015% 08/06/98 756,189
650,000 U.S. Treasury Bills 4.960% 08/06/98 646,776
2,800,000 U.S. Treasury Bills 4.920% 08/06/98 2,786,224
1,425,000 U.S. Treasury Bills 4.820% 08/06/98 1,418,131
410,000 U.S. Treasury Bills 4.760% 08/06/98 408,048
3,000,000 U.S. Treasury Bills 5.025% 08/13/98 2,981,994
4,000,000 U.S. Treasury Bills 4.820% 08/13/98 3,976,971
1,100,000 U.S. Treasury Bills 5.040% 08/27/98 1,091,222
400,000 U.S. Treasury Bills 4.990% 08/27/98 396,839
300,000 U.S. Treasury Bills 5.010% 08/27/98 297,620
1,200,000 U.S. Treasury Bills 5.020% 08/27/98 1,190,462
2,600,000 U.S. Treasury Bills 4.865% 08/27/98 2,579,972
200,000 U.S. Treasury Bills 4.880% 08/27/98 198,455
3,200,000 U.S. Treasury Bills 4.960% 09/03/98 3,171,783
450,000 U.S. Treasury Bills 4.880% 09/03/98 446,096
3,000,000 U.S. Treasury Bills 5.025% 10/08/98 2,958,544
600,000 U.S. Treasury Bills 4.960% 10/08/98 591,815
4,100,000 U.S. Treasury Bills 5.040% 10/22/98 4,035,138
4,600,000 U.S. Treasury Bills 4.950% 10/29/98 4,524,100
3,000,000 U.S. Treasury Bills 5.050% 11/05/98 2,946,560
----------
TOTAL INVESTMENTS
AT AMORTIZED COST -- 100.3% $100,512,174
Other Assets, less Liabilities -- (0.3%) (348,269)
----------
Net Assets -- 100.0% $100,163,905
===========
<PAGE>
SELECTED BLUE CHIP EQUITIES PORTFOLIO (WBC)
PORTFOLIO OF INVESTMENTS
June 30, 1998 (UNAUDITED)
================================================================================
Shares Value
------ -----
Equity Interests -- 98.6%
APPAREL -- 1.3%
VF Corp............................. 68,660 $ 3,535,990
-----------
AUTOMOTIVE -- 7.8%
Chrysler Corporation................ 101,900 $ 5,744,613
Dana Corp........................... 64,800 3,466,800
Eaton Corp.......................... 31,000 2,410,250
Johnson Controls.................... 51,000 2,916,563
Modine Mfg. Co...................... 100,700 3,486,738
Superior Industries Int'l. Inc...... 122,500 3,452,967
-----------
$ 21,477,931
-----------
CHEMICALS -- 5.4%
Cooper Tire & Rubber Co............. 144,000 $ 2,970,000
Lubrizol Corp....................... 95,600 2,891,900
Morton International Inc............ 103,300 2,582,500
PPG Industries...................... 41,500 2,886,844
Rohm & Haas Co...................... 33,600 3,492,300
-----------
$ 14,823,544
-----------
CONSTRUCTION -- 11.6%
Caterpillar Tractor, Inc............ 60,200 $ 3,183,075
Clayton Homes....................... 186,000 3,534,000
Fleetwood Enterprises, Inc.......... 86,900 3,476,000
Jacobs Engineering Group*........... 104,500 3,357,063
Medusa Corporation.................. 64,100 4,022,275
Oakwood Homes Corp.................. 76,600 2,298,000
Texas Industries Inc................ 75,000 3,975,000
Toll Brothers*...................... 146,500 4,202,719
Vulcan Materials Co................. 34,500 3,680,718
-----------
$ 31,728,850
-----------
DIVERSIFIED -- 5.0%
Carllisle Corp...................... 30,000 $ 1,291,875
Crane Company....................... 61,100 2,967,169
General Signal Corp................. 72,500 2,610,000
Lancaster Colony Corp............... 94,000 3,560,250
Teleflex, Incorporated.............. 84,000 3,192,000
-----------
$ 13,621,294
-----------
ELECTRONICS -- 8.6%
Adobe Systems Inc................... 83,400 $ 3,539,288
Compaq Computer..................... 97,100 2,755,213
Dallas Semiconductor Corp........... 87,600 2,715,600
EMC Corp./Mass*..................... 107,000 4,794,938
International Business Machine...... 25,000 2,870,313
Raytheon Co. Class B................ 67,260 3,976,748
Sun Microsystems Inc*............... 65,000 2,823,435
-----------
$ 23,475,535
-----------
FINANCIAL -- 13.2%
AMBAC Inc........................... 66,200 $ 3,872,700
BB&T Corporation.................... 58,400 3,949,300
Commerce Bancshares, Inc............ 82,563 4,030,106
Compass Bancshares.................. 81,750 3,688,969
Edwards (A.G.), Inc................. 123,750 5,282,578
First Security CP................... 168,750 3,612,296
Keycorp............................. 108,000 3,847,500
MBIA Inc............................ 54,000 4,043,250
Southtrust Corporation.............. 88,650 3,856,276
-----------
$ 36,182,975
-----------
FOOD -- 2.8%
Dean Foods Company.................. 81,000 $ 4,449,938
Universal Foods Corp................ 144,000 3,195,000
-----------
$ 7,644,938
-----------
MACHINERY & EQUIPMENT -- 3.3%
Cummins Engine Comm................. 56,000 $ 2,870,000
Deere & Co.......................... 53,300 2,818,237
Ingersoll Rand Co................... 73,950 3,258,422
-----------
$ 8,946,659
-----------
METAL PRODUCERS -- 1.4%
Carpenter Technology................ 78,200 $ 3,929,550
-----------
METAL PRODUCTS MANUFACTURERS -- 7.5%
Aeroquip-Vickers Inc................ 51,000 $ 2,977,309
Harsco Corp......................... 75,300 3,449,681
Kaydon Corp......................... 110,000 3,884,375
Mueller Industries*................. 116,000 4,306,500
Snap-on Inc......................... 86,600 3,139,250
Trinity Industries.................. 67,200 2,788,800
-----------
$ 20,545,915
-----------
<PAGE>
OIL, GAS & COAL -- 2.1%
Ensco International, Inc............ 141,500 $ 2,458,563
Nabors Inds., Inc.*................. 161,100 3,191,793
-----------
$ 5,650,356
-----------
PAPER -- 2.4%
Sonoco Products Co.................. 89,100 $ 2,695,275
Wausau-Mosinee Paper Corp........... 172,000 3,934,500
-----------
$ 6,629,775
-----------
PRINTING & PUBLISHING -- 2.9%
American Greetings Corp............. 76,900 $ 3,917,093
Banta (George) Corp................. 127,748 3,944,220
-----------
$ 7,861,313
-----------
RECREATION -- 3.9%
Brinker International Inc.*......... 182,800 $ 3,518,900
Brunswick Corp...................... 100,000 2,475,000
Ryan's Family Steak Houses*......... 446,000 4,571,500
-----------
$ 10,565,400
-----------
RETAILERS -- 3.4%
Lands' End, Inc..................... 90,000 $ 2,846,250
Ross Stores Inc..................... 96,700 4,158,100
Toys "R" Us, Inc. Holding Co*....... 94,000 2,214,875
-----------
$ 9,219,225
-----------
TRANSPORTATION -- 5.1%
ASA Holdings, Inc................... 66,600 $ 3,305,025
Comair Holdings, Inc................ 127,400 3,933,475
U.S. Freightways Corp............... 90,000 2,955,933
Werner Enterprises Inc.............. 191,250 3,645,703
-----------
$ 13,840,136
-----------
UTILITIES - 6.1%
Aliant Comm Inc..................... 146,000 $ 4,011,363
Duke Energy Corp.................... 68,400 4,052,700
NIPSCO Industries Inc............... 127,400 3,567,200
Questar Corp........................ 120,000 2,355,000
TECO Energy, Inc.................... 98,000 2,627,625
-----------
$ 16,613,888
-----------
MISCELLANEOUS -- 4.8%
Arrow Electronics, Inc*............. 109,600 $ 2,383,800
Kelly Services...................... 103,500 3,661,312
Leggett & Platt Inc................. 149,200 3,730,000
Sierra Health Svcs*................. 130,500 3,286,969
-----------
$ 13,062,081
-----------
TOTAL EQUITY INTERESTS - 98.6%
(identified cost, $205,007,481) $269,355,355
Reserve Funds -- 2.9%
Face Amount
-----------
American Express Corp., 5.951%, 7/1/98
(at amortized cost).............$8,095,000 $ 8,095,000
-----------
TOTAL INVESTMENTS -- 101.5%
(identified cost, $213,102,481) $277,450,355
OTHER ASSETS,
LESS LIABILITIES -- (1.5)% (4,163,768)
-----------
NET ASSETS -- 100% $273,286,587
============
* Non-income-producing security.
See notes to financial statements
<PAGE>
JUNIOR BLUE CHIP EQUITIES PORTFOLIO (WJBC)
PORTFOLIO OF INVESTMENTS
June 30, 1998 (UNAUDITED)
Shares Value
-------- -----
Equity Interests -- 99.3%
APPAREL -- 2.5%
Quiksilver, Inc*.................... 45,200 $ 901,175
-----------
AUTOMOTIVE -- 8.8%
Myers Industries.................... 46,950 $ 1,126,800
Simpson Industries.................. 74,900 1,025,194
Thor Industries, Inc................ 38,100 1,054,894
-----------
$ 3,206,888
-----------
CHEMICALS -- 4.8%
AMCOL Int'l. Corp................... 76,200 $ 919,162
Learonal, Inc....................... 34,300 818,913
-----------
$ 1,738,075
-----------
CONSTRUCTION -- 4.9%
Patrick Industries.................. 55,200 $ 841,800
Universal Forest Pr................. 56,400 923,550
-----------
$ 1,765,350
-----------
DRUGS, COSMETICS & HEALTHCARE -- 4.6%
Empi, Inc*.......................... 65,900 $ 1,091,469
Respironics, Inc*................... 36,400 566,475
-----------
$ 1,657,944
-----------
ELECTRICAL --3.1%
C&D Technology Inc.................. 19,300 $ 1,119,400
-----------
ELECTRONICS -- 7.1%
Cohu, Inc........................... 24,400 $ 593,225
In Focus Systems*................... 128,500 907,531
Technitrol, Inc..................... 26,800 1,070,325
-----------
$ 2,571,081
-----------
FINANCIAL -- 10.0%
Centura Banks Inc................... 13,400 $ 837,500
McDonald & Co. Investments.......... 32,300 1,059,844
One Valley Bancorp.................. 22,200 807,525
Raymond James Financial Corp........ 30,900 925,069
-----------
$ 3,629,938
-----------
MACHINERY & EQUIPMENT -- 5.5%
Applied Power Inc. Cl. "A".......... 28,700 $ 986,563
CLARCOR Inc......................... 48,600 1,020,600
-----------
$ 2,007,163
-----------
METAL PRODUCERS -- 2.9%
Imco Recycling Inc.................. 56,700 $ 1,048,950
-----------
METAL PRODUCTS MANUFACTURERS -- 2.2%
Regal Beloit Corp................... 28,200 $ 803,700
-----------
PAPER -- 5.7%
Day Runner, Inc*.................... 43,600 $ 1,098,175
Republic Group, Inc................. 45,500 955,500
-----------
$ 2,053,675
-----------
PRINTING & PUBLISHING -- 8.1%
Bowne & Co.......................... 21,900 $ 985,500
Merrill Corp........................ 44,100 972,956
Standard Register................... 27,800 983,425
-----------
$ 2,941,881
-----------
RECREATION -- 7.8%
Arctic Cat, Inc..................... 104,200 $ 1,028,975
Buffetts Inc.*...................... 54,700 858,106
Sonic Corp.*........................ 43,050 963,244
-----------
$ 2,850,325
-----------
RETAILERS -- 4.5%
Dress Barn Inc*..................... 29,900 $ 743,762
Ruddick Corp........................ 49,100 889,938
-----------
$ 1,633,700
-----------
<PAGE>
MISCELLANEOUS -- 16.8%
Bush Industries Cl. A............... 33,800 $ 735,150
Franklin Covey Co*.................. 47,200 908,600
Gallagher (Arthur J.)............... 23,600 1,056,100
Lawson Prods. Inc................... 33,500 862,625
TBC Corp.*.......................... 122,000 808,250
Tetra Tech Inc.*.................... 40,300 977,275
World Fuel Services Corp............ 43,800 758,288
-----------
$ 6,106,288
-----------
TOTAL EQUITY INTERESTS -- 99.3%
(identified cost, $33,781,384) $ 36,035,533
OTHER ASSETS,
LESS LIABILITIES -- 0.7% 245,941
-----------
NET ASSETS -- 100.0% $ 36,281,474
============
* Non-income-producing security.
See notes to financial statements
<PAGE>
INTERNATIONAL BLUE CHIP EQUITIES PORTFOLIO (WIBC)
PORTFOLIO OF INVESTMENTS
June 30, 1998 (UNAUDITED)
Shares Value
-------- ------
Equity Interests -- 96.8%
ARGENTINA -- 2.4%
Telecom Argentina Stet Ord.......... 64,800 $ 1,931,850
Telefonica de Argentina............. 81,100 2,630,681
YPF Sociedad Anonima................ 74,800 2,248,675
-----------
$ 6,811,206
-----------
AUSTRALIA -- 2.4%
Australian Gas & Light Co........... 381,184 $ 2,391,787
Coles Myer Ltd ADR................. 62,551 1,927,353
Lend Lease Corp. Ltd................ 120,844 2,451,177
-----------
$ 6,770,317
-----------
BRAZIL -- 0.8%
Telecomjunicacoes Brasileir......... 21,400 $ 2,336,613
-----------
CANADA -- 6.8%
Bombardier Inc. Class B............. 117,000 $ 3,182,494
Linamar Corporation................. 106,500 1,897,457
Loblaw Companies Ltd................ 127,600 3,036,969
Magna Int'l. Inc. Cl. A............. 39,120 2,678,859
Power Financial Corp................ 68,600 3,207,146
Precision Drilling Corp.*........... 138,200 2,720,688
Teleglobe Inc....................... 101,200 2,697,668
-----------
$ 19,421,281
-----------
CHILE -- 0.5%
Compania de Telecomunicacion ADR.... 78,000 $ 1,584,375
Compania de Telecomunicacion Rights* 4,934 1,696
-----------
$ 1,586,071
-----------
DENMARK -- 4.1%
Christian Hansen Holding A/S........ 17,400 $ 2,280,614
Coloplast B A/S..................... 34,200 3,358,209
Icopal A/S.......................... 51,850 2,489,090
Novo-Nordisk A/S.................... 26,000 3,585,581
-----------
$ 11,713,494
-----------
FINLAND -- 3.5%
Finnlines Oy........................ 43,200 $ 2,677,946
Nokia Oy a Shares................... 61,000 4,504,266
Orion A/S-B......................... 94,220 2,853,330
-----------
$ 10,035,542
-----------
FRANCE -- 10.3%
Comptoirs Modernes SA............... 4,954 $ 2,579,777
L'Air Liquide SA.................... 13,548 2,239,586
LeGrand SA.......................... 10,500 2,777,089
Pernod-Ricard....................... 37,700 2,611,174
Pinault-Printemps Redoute SA........ 4,200 3,513,018
Promodes............................ 5,400 2,990,330
Sagem SA............................ 5,020 3,903,476
Synthelabo.......................... 17,300 2,916,935
Technip-Cie. Fran. D'Etudes......... 22,230 2,715,591
Valeo SA............................ 32,000 3,269,031
-----------
$ 29,516,007
-----------
GERMANY -- 5.0%
BASF AG............................. 58,400 $ 2,775,173
Bayerische Motoren Werke AG......... 4,040 4,085,896
Dyckerhoff AG....................... 6,650 2,598,088
Gea Pref. Shares.................... 6,200 2,446,329
Gehe AG............................. 42,440 2,275,461
-----------
$ 14,180,947
-----------
HONG KONG -- 1.4%
CLP Holdings Limited................ 351,276 $ 1,600,273
Hong Kong Telecom................... 413,600 776,801
Johnson Electric Holdings Ltd....... 404,000 1,496,683
-----------
$ 3,873,757
-----------
IRELAND -- 3.6%
Bank of Ireland..................... 157,894 $ 3,238,027
CRH PLC............................. 171,200 2,430,184
Elan Corp. PLC*..................... 42,700 2,746,144
Waterford Wedgewood - Uni...........1,560,000 2,006,004
-----------
$ 10,420,359
-----------
ITALY -- 3.8%
Assicurazione Generali Itl.......... 80,000 $ 2,588,481
Benetton SPA.......................1,370,000 2,845,562
Edison SPA.......................... 372,000 2,994,202
Eni Group Ente Nazionale Idrocarburi 383,000 2,494,454
-----------
$ 10,922,699
-----------
<PAGE>
JAPAN -- 5.8%
Bridgestone Corporation............. 103,000 $ 2,447,673
Canon Inc........................... 79,000 1,802,934
Fuji Photo Film..................... 54,000 1,889,658
Honda Motor Co., Ltd................ 65,000 2,326,390
Nintendo Corp. Ltd.................. 22,000 2,067,307
Rohm Company........................ 21,000 2,160,478
Sony Corp........................... 23,000 1,991,306
Toyota Motor Co..................... 77,000 2,002,753
-----------
$ 16,688,499
-----------
MALAYSIA -- 0.1%
Guinness Anchor Berhad.............. 391,000 $ 417,041
-----------
MEXICO -- 4.1%
Cemex S.A........................... 515,000 $ 1,932,253
Cifra S.A...........................1,339,740 1,992,755
Grupo Carso S.A. de C.V............. 327,000 1,345,207
Organizacion Soriana SA-B........... 649,000 1,864,195
Panamerican Beverages Inc-A......... 61,600 1,936,550
Telefonos de Mexico................. 54,400 2,614,600
-----------
$ 11,685,560
-----------
NETHERLANDS -- 11.4%
Abn Amro Holdings................... 99,677 $ 2,332,199
Akzo Dutch Ord...................... 12,450 2,767,347
CSM N.V. Cert....................... 46,299 2,223,463
Getronics N.V....................... 31,925 1,655,568
Hagemeyer N.V....................... 48,023 2,077,283
ING Groep N.V....................... 50,293 3,292,876
Internatio-Muller NV................ 72,700 2,433,577
Koninklijke PTT Nederland NV........ 58,818 2,263,788
Numico NV........................... 72,733 2,277,375
Stork N.V........................... 65,417 2,083,672
TNT Post Group*..................... 58,818 1,503,409
Unilever N.V........................ 51,600 4,093,708
Verenigde Nederlandse............... 101,000 3,668,846
-----------
$ 32,673,111
-----------
PORTUGAL-- 1.6%
Banco Espirito Santo - Reg.......... 74,730 $ 2,243,842
Portugal Telecom S.A. ADR........... 42,000 2,223,375
-----------
$ 4,467,217
-----------
SOUTH AFRICA -- 1.1%
Sasol Beperk Limited................ 87,500 $ 504,723
South African Breweries LT.......... 90,603 1,856,182
Tiger Oats Limited.................. 82,350 726,008
-----------
$ 3,086,913
-----------
SPAIN -- 6.2%
Banco Popular Espanola.............. 46,400 $ 3,952,665
Bankinter - Banco Interc Esp........ 36,000 2,332,867
Endesa S.A.......................... 122,400 2,674,473
Gas Natural SDG S.A................. 42,000 3,030,773
Repsol S.A.......................... 55,740 3,060,264
Telefonica.......................... 55,000 2,539,646
-----------
$ 17,590,688
-----------
SWEDEN -- 3.6%
Astra AB B Free Shares.............. 142,000 $ 2,827,729
Atlas Copco AB A Free............... 101,000 2,751,268
Hoganas AB.......................... 100,500 2,240,466
Svedala Industri AB-Free............ 107,300 2,486,129
-----------
$ 10,305,592
-----------
SWITZERLAND -- 6.4%
ABB AG.............................. 1,530 $ 2,261,133
Alusuisse-Lonza Holding AG.......... 2,450 3,109,982
Nestle SA ADR....................... 36,900 3,948,326
Novartis AG-Reg..................... 1,900 3,163,951
Sch. Rueckversicherungs-Ges......... 1,150 2,910,470
S.M.H. AG-Registered 10SFR.......... 17,600 2,937,785
-----------
$ 18,331,647
-----------
UNITED KINGDOM -- 11.9%
Bodycote International PLC.......... 145,300 $ 2,572,101
Cable & Wireless PLC ADR........... 84,300 3,108,563
Johnson Matthey Public Ltd.......... 255,200 2,322,703
Kwik-Fit Holdings PLC............... 315,100 2,581,105
Provident Financial PLC............. 149,745 2,350,706
Siebe PLC........................... 135,972 2,718,067
Smiths Industries PLC............... 180,100 2,530,954
Tesco PLC........................... 260,885 2,566,153
Tomkins PLC......................... 449,509 2,357,135
Vodafone Group PLC.................. 393,031 4,993,275
Weir Group PLC...................... 335,000 1,216,809
Wm. Morrison Supermarkets PLC....... 540,500 2,716,942
Wolseley PLC........................ 252,215 1,528,953
-----------
$ 33,563,466
-----------
TOTAL EQUITY INTERESTS - 96.8%
(identified cost, $206,437,085) $276,398,027
Reserve Funds -- 2.3%
Face Amount
-------------
American Express Corp., 5.951%, 7/1/98
(at amortized cost).............$6,630,000 $ 6,630,000
-----------
TOTAL INVESTMENTS -- 99.1%
(identified cost, $213,067,085) $283,028,027
OTHER ASSETS,
LESS LIABILITIES -- 0.9% 2,640,782
-----------
NET ASSETS -- 100% $285,668,809
============
* Non-income-producing security.
ADR: American Depository Receipts
See notes to financial statements
<PAGE>
U.S. TREASURY NEAR TERM PORTFOLIO (WNTB)
PORTFOLIO OF INVESTMENTS
June 30, 1998 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Face Coupon Maturity Market Current Yield To
Amount Description Rate Date Price Value Yield(1) Maturity(1)
- ---------------------------------------------------------------------------------------------------------------------------------
GOVERNMENT INTERESTS
<S> <C> <C> <C> <C> <C> <C> <C>
$ 2,000,000 U. S. Treasury Notes 7.125% 10/15/98 $100.547 $ 2,010,940 7.09% 5.12%
7,000,000 U. S. Treasury Notes 6.250% 03/31/99 100.578 7,040,460 6.21% 5.46%
3,000,000 U. S. Treasury Notes 7.000% 04/15/99 101.125 3,033,750 6.92% 5.51%
8,500,000 U. S. Treasury Notes 6.375% 07/15/99 100.859 8,573,015 6.32% 5.50%
2,000,000 U. S. Treasury Notes 8.000% 08/15/99 102.656 2,053,120 7.79% 5.50%
8,000,000 U. S. Treasury Notes 5.750% 09/30/99 100.266 8,021,280 5.73% 5.51%
2,000,000 U. S. Treasury Notes 7.875% 11/15/99 103.062 2,061,240 7.64% 5.52%
4,500,000 U. S. Treasury Notes 5.375% 01/31/00 99.766 4,489,470 5.39% 5.54%
2,000,000 U. S. Treasury Notes 5.875% 02/15/00 100.547 2,010,940 5.84% 5.52%
1,500,000 U. S. Treasury Notes 8.500% 02/15/00 104.547 1,568,205 8.13% 5.54%
11,100,000 U. S. Treasury Notes 7.125% 02/29/00 102.500 11,377,500 6.95% 5.53%
8,000,000 U. S. Treasury Notes 6.250% 05/31/00 101.312 8,104,960 6.17% 5.53%
9,500,000 U. S. Treasury Notes 6.000% 08/15/00 100.953 9,590,535 5.94% 5.54%
2,500,000 U. S. Treasury Notes 5.625% 11/30/00 100.219 2,505,475 5.61% 5.54%
3,700,000 U. S. Treasury Notes 5.500% 12/31/00 99.953 3,698,261 5.50% 5.53%
2,500,000 U. S. Treasury Notes 5.625% 02/28/01 100.250 2,506,250 5.61% 5.54%
9,650,000 U. S. Treasury Notes 7.500% 11/15/01 105.922 10,221,473 7.08% 5.57%
4,000,000 U. S. Treasury Notes 6.250% 02/28/02 102.297 4,091,880 6.11% 5.57%
2,000,000 U. S. Treasury Notes 6.000% 07/31/02 101.687 2,033,740 5.90% 5.55%
1,000,000 U. S. Treasury Notes 5.500% 01/31/03 99.922 999,220 5.50% 5.54%
3,400,000 Federal Home Loan Banks 5.020% 11/16/98 99.896 3,396,464 5.03% 5.71%
-----------
Total Investments (identified cost, $98,220,577) -- 98.1% $ 99,388,178
Other Assets, Less Liabilities -- 1.9% 1,926,222
-----------
Net Assets -- 100.0% $101,314,400
============
Average Maturity -- 1.9 Years (1)
(1) Unaudited.
</TABLE>
See notes to financial statements
<PAGE>
U.S. TREASURY PORTFOLIO (WUSTB)
PORTFOLIO OF INVESTMENTS
June 30, 1998 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Face Coupon Maturity Market Current Yield To
Amount Description Rate Date Price Value Yield(1) Maturity(1)
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 5,500,000 U. S. Treasury Notes 5.875% 11/15/99 $100.453 $ 5,524,915 5.85% 5.51%
2,700,000 U. S. Treasury Notes 6.250% 01/31/00 99.766 2,693,682 5.39% 5.54%
3,400,000 U. S. Treasury Notes 6.250% 05/31/00 101.312 3,444,608 6.17% 5.53%
4,450,000 U. S. Treasury Notes 5.250% 01/31/01 99.375 4,422,188 5.28% 5.52%
525,000 U. S. Treasury Notes 6.250% 02/15/03 102.906 540,257 6.07% 5.54%
10,000,000 U. S. Treasury Notes 6.500% 05/15/05 105.547 10,554,700 6.16% 5.52%
8,000,000 U. S. Treasury Notes 6.500% 08/15/05 105.531 8,442,480 6.16% 5.56%
3,200,000 U. S. Treasury Notes 5.875% 11/15/05 101.906 3,260,992 5.77% 5.57%
6,000,000 U. S. Treasury Notes 5.625% 02/15/06 100.406 6,024,360 5.60% 5.57%
3,500,000 U. S. Treasury Notes 6.500% 10/15/06 106.187 3,716,545 6.12% 5.57%
1,500,000 U. S. Treasury Notes 6.250% 02/15/07 104.719 1,570,785 5.97% 5.56%
1,500,000 U. S. Treasury Notes 6.625% 05/15/07 107.406 1,611,090 6.17% 5.57%
3,000,000 U. S. Treasury Notes 6.125% 08/15/07 104.047 3,121,410 5.89% 5.56%
600,000 U. S. Treasury Bonds 11.625% 11/15/04 132.234 793,404 8.79% 5.56%
1,000,000 U. S. Treasury Bonds 10.000% 05/15/10 124.578 1,245,780 8.03% 6.93%
1,300,000 U. S. Treasury Bonds 14.000% 11/15/11 155.141 2,016,833 9.02% 7.43%
6,100,000 U. S. Treasury Bonds 7.250% 05/15/16 117.156 7,146,516 6.19% 5.72%
2,000,000 U. S. Treasury Bonds 6.250% 08/15/23 107.062 2,141,240 5.84% 5.71%
2,200,000 U. S. Treasury Bonds 6.000% 02/15/26 104.031 2,288,681 5.77% 5.71%
-----------
Total Investments (identified cost, $67,237,079)-- 97.9% $ 70,560,466
Other Assets, less Liabilities-- 2.1% 1,513,036
-----------
Net Assets-- 100.0% $ 72,073,502
============
Average Maturity -- 8.6 Years (1)
(1) Unaudited.
</TABLE>
See notes to financial statements
<PAGE>
CURRENT INCOME PORTFOLIO (WCIF)
PORTFOLIO OF INVESTMENTS
June 30, 1998 (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Face Coupon Maturity Market Current
Amount Description Rate Date Price Value Yield(1)
- ------------------------------------------------------------------------------------------------------------------------------
GOVERNMENT INTERESTS - 95.8%
<S> <C> <C> <C> <C> <C> <C>
$ 2,648 GNMA POOL # 000434 8.000% 04/15/01 $101.397 $ 2,685 7.89%
1,072,502 GNMA POOL # 000545 7.500% 12/20/22 102.594 1,100,323 7.31%
1,710,039 GNMA POOL # 000723 7.500% 01/20/23 102.594 1,754,398 7.31%
613 GNMA POOL # 000473 7.500% 04/15/01 101.107 620 7.42%
1,527,377 GNMA POOL # 001268 8.000% 07/20/23 103.577 1,582,011 7.72%
1,959 GNMA POOL # 001408 6.500% 03/15/02 99.850 1,957 6.51%
80,219 GNMA POOL # 001596 9.000% 04/20/21 106.843 85,708 8.42%
467,328 GNMA POOL # 001788 7.000%% 07/20/24 101.438 474,049 6.90%
785,316 GNMA POOL # 002218 7.500% 05/20/26 102.500 804,950 7.32%
1,645 GNMA POOL # 003026 8.000% 01/15/04 102.693 1,689 7.79%
1,088 GNMA POOL # 003331 8.000% 01/15/04 102.693 1,118 7.79%
3,004 GNMA POOL # 004183 8.000% 07/15/04 102.693 3,085 7.79%
2,157 GNMA POOL # 004433 9.000% 11/15/04 105.234 2,271 8.55%
828,285 GNMA POOL # 004702 7.500% 02/15/26 102.781 851,320 7.30%
4,916 GNMA POOL # 005466 8.500% 03/15/05 104.362 5,131 8.14%
565 GNMA POOL # 005561 8.500% 04/15/05 103.872 588 8.18%
2,720,505 GNMA POOL # 005601 8.000% 11/15/26 103.625 2,819,124 7.72%
2,119 GNMA POOL # 005687 7.250% 02/15/05 102.017 2,162 7.11%
2,772 GNMA POOL # 005910 7.250% 02/15/05 102.380 2,838 7.08%
12,866 GNMA POOL # 007003 8.000% 07/15/05 103.062 13,260 7.76%
1,798 GNMA POOL # 007319 6.500% 10/15/04 99.853 1,796 6.51%
5,644 GNMA POOL # 009106 8.250% 05/15/06 104.103 5,876 7.92%
8,087 GNMA POOL # 009889 7.250% 02/15/06 102.535 8,293 7.07%
1,262 GNMA POOL # 011191 7.250% 04/15/06 102.535 1,294 7.07%
3,982 GNMA POOL # 012526 8.000% 11/15/06 103.734 4,132 7.71%
1,155,385 GNMA POOL # 044190 8.000% 12/15/26 103.625 1,197,268 7.72%
97,227 GNMA POOL # 151443 10.000% 03/15/16 109.314 106,283 9.15%
20,176 GNMA POOL # 153564 10.000% 04/15/16 109.155 22,024 9.16%
143,328 GNMA POOL # 172558 9.500% 08/15/16 108.374 155,331 8.77%
171,665 GNMA POOL # 176992 8.000% 11/15/16 104.750 179,819 7.64%
39,473 GNMA POOL # 177784 8.000% 10/15/16 104.750 41,349 7.64%
61,665 GNMA POOL # 180033 9.500% 09/15/16 108.374 66,829 8.77%
4,948 GNMA POOL # 188060 9.500% 10/15/16 108.374 5,363 8.77%
6,222 GNMA POOL # 190959 8.500% 02/15/17 106.174 6,607 8.01%
104,269 GNMA POOL # 192357 8.000% 04/15/17 104.643 109,111 7.65%
371,852 GNMA POOL # 194057 8.500% 04/15/17 106.174 394,811 8.01%
79,558 GNMA POOL # 194287 9.500% 03/15/17 108.336 86,191 8.77%
541,138 GNMA POOL # 194926 8.500% 02/15/17 106.174 574,548 8.01%
11,974 GNMA POOL # 196063 8.500% 03/15/17 106.174 12,713 8.01%
262,981 GNMA POOL # 203369 8.000% 12/15/16 104.750 275,473 7.64%
15,611 GNMA POOL # 206740 10.000% 10/15/17 109.725 17,129 9.11%
83,064 GNMA POOL # 206762 9.000% 04/15/21 107.499 89,293 8.37%
69,257 GNMA POOL # 207019 8.000% 03/15/17 104.643 72,474 7.65%
30,200 GNMA POOL # 208076 8.000% 04/15/17 104.643 31,602 7.65%%
11,132 GNMA POOL # 210520 10.500% 08/15/17 111.069 12,365 9.45%
19,900 GNMA POOL # 210618 9.500% 04/15/17 108.336 21,560 8.77%
111,620 GNMA POOL # 211013 9.000% 01/15/20 107.593 120,096 8.36%
86,452 GNMA POOL # 211231 8.500% 05/15/17 106.174 91,790 8.01%
68,692 GNMA POOL # 212601 8.500% 06/15/17 106.174 72,933 8.01%
<PAGE>
13,647 GNMA POOL # 218420 8.500% 11/15/21 $105.874 $ 14,449 8.03%
210,621 GNMA POOL # 219335 8.000% 05/15/17 104.643 220,400 7.65%
188,604 GNMA POOL # 220703 8.000% 05/15/17 104.643 197,361 7.65%
23,257 GNMA POOL # 220917 8.500% 04/15/17 106.174 24,693 8.01%
436,740 GNMA POOL # 222112 8.000% 01/15/22 104.000 454,210 7.69%
40,806 GNMA POOL # 223126 10.000% 08/15/17 109.725 44,775 9.11%
89,368 GNMA POOL # 223133 9.500% 07/15/17 108.336 96,818 8.77%
19,034 GNMA POOL # 223348 10.000% 08/15/18 109.822 20,905 9.11%
8,042 GNMA POOL # 223588 10.000% 12/15/18 109.454 8,803 9.14%
13,962 GNMA POOL # 224078 10.000% 07/15/18 109.822 15,334 9.11%
74,410 GNMA POOL # 228308 10.000% 01/15/19 109.725 81,647 9.11%
56,451 GNMA POOL # 228483 9.500% 09/15/19 108.261 61,115 8.78%
40,867 GNMA POOL # 230223 9.500% 04/15/18 108.299 44,259 8.77%
30,566 GNMA POOL # 235000 10.000% 01/15/18 109.725 33,539 9.11%
37,265 GNMA POOL # 245580 9.500% 07/15/18 108.299 40,358 8.77%
24,582 GNMA POOL # 247473 10.000% 09/15/18 109.454 26,907 9.14%
102,245 GNMA POOL # 247681 9.000% 11/15/19 107.687 110,105 8.36%
24,299 GNMA POOL # 247872 10.000% 09/15/18 109.822 26,686 9.11%
30,191 GNMA POOL # 250412 8.000% 03/15/18 104.537 31,561 7.65%
46,024 GNMA POOL # 251241 9.500% 06/15/18 108.299 49,845 8.77%
74,991 GNMA POOL # 258911 9.500% 09/15/18 108.299 81,215 8.77%
42,944 GNMA POOL # 260999 9.500% 09/15/18 108.299 46,509 8.77%
46,385 GNMA POOL # 263439 10.000% 02/15/19 109.822 50,942 9.11%
59,167 GNMA POOL # 265267 9.500% 08/15/20 108.224 64,033 8.78%
26,620 GNMA POOL # 266983 10.000% 02/15/19 109.822 29,236 9.11%
16,748 GNMA POOL # 273690 9.500% 08/15/19 108.261 18,132 8.78%
43,236 GNMA POOL # 274489 9.500% 12/15/19 108.261 46,808 8.78%
19,659 GNMA POOL # 275456 9.500% 08/15/19 108.261 21,284 8.78%
76,817 GNMA POOL # 275538 9.500% 01/15/20 108.224 83,135 8.78%
40,284 GNMA POOL # 277205 9.000% 12/15/19 107.687 43,381 8.36%
26,056 GNMA POOL # 285467 9.500% 07/15/20 108.224 28,200 8.78%
68,418 GNMA POOL # 285744 9.000% 05/15/20 107.593 73,613 8.36%
77,807 GNMA POOL # 286556 9.000% 03/15/20 107.593 83,715 8.36%
1,201 GNMA POOL # 287999 9.000% 09/15/20 107.593 1,293 8.36%
134,939 GNMA POOL # 289092 9.000% 04/15/20 107.593 145,185 8.36%
13,556 GNMA POOL # 289949 8.500% 07/15/21 105.874 14,352 8.03%
27,285 GNMA POOL # 290700 9.000% 08/15/20 107.593 29,357 8.36%
33,268 GNMA POOL # 291933 9.500% 07/15/20 108.224 36,005 8.78%
41,934 GNMA POOL # 293666 8.500% 06/15/21 105.874 44,398 8.03%
1,497 GNMA POOL # 294209 9.000% 07/15/21 107.499 1,609 8.37%
57,969 GNMA POOL # 294577 9.500% 11/15/20 108.224 62,737 8.78%
9,727 GNMA POOL # 297345 8.500% 08/15/20 105.949 10,306 8.02%
19,036 GNMA POOL # 301017 8.500% 06/15/21 105.874 20,154 8.03%
77,069 GNMA POOL # 301366 8.500% 06/15/21 105.874 81,596 8.03%
116,379 GNMA POOL # 302713 9.000% 02/15/21 107.499 125,107 8.37%
12,003 GNMA POOL # 302723 8.500% 05/15/21 105.874 12,708 8.03%
81,741 GNMA POOL # 302781 8.500% 06/15/21 105.874 86,543 8.03%
85,495 GNMA POOL # 302933 8.500% 06/15/21 105.874 90,518 8.03%
103,442 GNMA POOL # 304512 8.500% 05/15/21 105.874 109,519 8.03%
134,345 GNMA POOL # 305091 9.000% 07/15/21 107.499 144,420 8.37%
<PAGE>
10,230 GNMA POOL # 306669 8.000% 07/15/21 $104.219 $ 10,662 7.68%
126,096 GNMA POOL # 306693 8.500% 09/15/21 105.874 133,504 8.03%
86,598 GNMA POOL # 308792 9.000% 07/15/21 107.499 93,092 8.37%
56,380 GNMA POOL # 311087 8.500% 07/15/21 105.874 59,693 8.03%
19,007 GNMA POOL # 314222 8.500% 04/15/22 105.718 20,095 8.04%
158,408 GNMA POOL # 314581 9.500% 10/15/21 108.186 171,376 8.78%
312,383 GNMA POOL # 315187 8.000% 06/15/22 104.000 324,879 7.69%
571,561 GNMA POOL # 315388 8.000% 02/15/22 104.000 594,424 7.69%
396,650 GNMA POOL # 315754 8.000% 01/15/22 104.000 412,517 7.69%
615,844 GNMA POOL # 316240 8.000% 01/15/22 104.000 640,479 7.69%
108,841 GNMA POOL # 316615 8.500% 11/15/21 105.874 115,234 8.03%
191,382 GNMA POOL # 317069 8.500% 12/15/21 105.874 202,624 8.03%
339,949 GNMA POOL # 317351 8.000% 05/15/22 104.000 353,547 7.69%
299,105 GNMA POOL # 317358 8.000% 05/15/22 104.000 311,070 7.69%
334,081 GNMA POOL # 318776 8.000% 02/15/22 104.000 347,445 7.69%
9,137 GNMA POOL # 318793 8.500% 02/15/22 105.718 9,660 8.04%
376,362 GNMA POOL # 319441 8.500% 04/15/22 105.718 397,883 8.04%
215,619 GNMA POOL # 321806 8.000% 05/15/22 104.000 224,244 7.69%
461,719 GNMA POOL # 321807 8.000% 05/15/22 104.000 480,188 7.69%
267,707 GNMA POOL # 321976 8.500% 01/15/22 105.718 283,015 8.04%
512,123 GNMA POOL # 323226 8.000% 06/15/22 104.000 532,608 7.69%
435,405 GNMA POOL # 323929 8.000% 02/15/22 104.000 452,822 7.69%
401,964 GNMA POOL # 325165 8.000% 06/15/22 104.000 418,043 7.69%
291,929 GNMA POOL # 325651 8.000% 06/15/22 104.000 303,606 7.69%
638,753 GNMA POOL # 329540 7.500% 08/15/22 102.906 657,315 7.29%
1,032,175 GNMA POOL # 329982 7.500% 02/15/23 102.874 1,061,840 7.29%
555,662 GNMA POOL # 331361 8.000% 11/15/22 104.000 577,889 7.69%
851,882 GNMA POOL # 335746 8.000% 10/15/22 104.000 885,958 7.69%
413,548 GNMA POOL # 335950 8.000% 10/15/22 104.000 430,090 7.69%
1,969,412 GNMA POOL # 348103 7.000% 06/15/23 101.750 2,003,877 6.88%
588,291 GNMA POOL # 348213 6.500% 08/15/23 100.187 589,392 6.49%
1,383,120 GNMA POOL # 350372 7.000% 04/15/23 101.750 1,407,326 6.88%
1,182,735 GNMA POOL # 350659 7.500% 06/15/23 102.874 1,216,727 7.29%
1,595,361 GNMA POOL # 350938 6.500% 08/15/23 100.187 1,598,345 6.49%
1,453,395 GNMA POOL # 352001 6.500% 12/15/23 100.187 1,456,113 6.49%
725,434 GNMA POOL # 362174 6.500% 01/15/24 100.156 726,566 6.49%
762,719 GNMA POOL # 362628 7.000% 08/15/23 101.750 776,067 6.88%
846,591 GNMA POOL # 363429 7.000% 08/15/23 101.750 861,407 6.88%
802,909 GNMA POOL # 367414 6.000% 11/15/23 98.000 786,851 6.12%
1,407,816 GNMA POOL # 367806 6.500% 09/15/23 100.187 1,410,450 6.49%
1,895,338 GNMA POOL # 368238 7.000% 12/15/23 101.750 1,928,507 6.88%
2,241,251 GNMA POOL # 368502 7.000% 02/15/24 101.688 2,279,084 6.88%
1,546,782 GNMA POOL # 370773 6.000% 11/15/23 98.000 1,515,847 6.12%
2,545,247 GNMA POOL # 372050 6.500% 02/15/24 100.156 2,549,218 6.49%
1,267,997 GNMA POOL # 372379 8.000% 10/15/26 103.625 1,313,963 7.72%
984,334 GNMA POOL # 372468 6.500% 12/15/27 99.781 982,179 6.51%
2,903,750 GNMA POOL # 376218 7.500% 08/15/25 102.812 2,985,404 7.29%
968,815 GNMA POOL # 376400 6.500% 02/15/24 100.156 970,327 6.49%
775,736 GNMA POOL # 398251 7.500% 09/15/25 102.812 797,550 7.29%
1,375,814 GNMA POOL # 405558 7.500% 01/15/26 102.781 1,414,076 7.30%
<PAGE>
1,415,570 GNMA POOL # 410915 6.500% 02/15/26 $ 99.906 $ 1,414,240 6.51%
777,476 GNMA POOL # 414736 7.500% 11/15/25 102.812 799,340 7.29%
813,871 GNMA POOL # 417225 7.500% 01/15/26 102.781 836,506 7.30%
1,336,798 GNMA POOL # 417276 7.000% 02/15/26 101.593 1,358,094 6.89%
3,552,722 GNMA POOL # 420707 7.000% 02/15/26 101.593 3,609,317 6.89%
848,941 GNMA POOL # 421829 7.500% 04/15/26 102.781 872,550 7.30%
1,382,999 GNMA POOL # 422506 6.500% 03/15/26 99.906 1,381,699 6.51%
139,983 GNMA POOL # 423114 7.000% 09/15/27 101.593 142,213 6.89%
841,825 GNMA POOL # 424173 7.500% 03/15/26 102.781 865,237 7.30%
498,441 GNMA POOL # 427199 7.000% 12/15/27 101.593 506,382 6.89%
1,833,829 GNMA POOL # 430279 7.000% 10/15/27 101.593 1,863,042 6.89%
567,562 GNMA POOL # 431036 8.000% 07/15/26 103.625 588,136 7.72%
978,733 GNMA POOL # 436214 6.500% 02/15/13 101.000 988,521 6.44%
1,137,021 GNMA POOL # 436723 7.500% 11/15/26 102.781 1,168,642 7.30%
3,200,015 GNMA POOL # 436777 7.000% 04/15/27 101.593 3,250,992 6.89%
2,347,968 GNMA POOL # 440166 7.000% 02/15/27 101.593 2,385,372 6.89%
1,027,262 GNMA POOL # 442063 7.000% 10/15/26 101.593 1,043,627 6.89%
936,851 GNMA POOL # 442193 7.500% 12/15/26 102.781 962,906 7.30%
1,242,945 GNMA POOL # 446943 7.000% 04/15/27 101.593 1,262,745 6.89%
3,831,117 GNMA POOL # 448490 7.500% 03/15/27 102.781 3,937,660 7.30%
2,713,471 GNMA POOL # 458672 6.500% 01/15/28 99.781 2,707,529 6.51%
1,498,695 GNMA POOL # 458712 7.000% 11/15/27 101.593 1,522,570 6.89%
489,885 GNMA POOL # 460698 7.000% 10/15/27 101.593 497,689 6.89%
1,476,562 GNMA POOL # 460726 6.500% 12/15/27 99.781 1,473,328 6.51%
1,974,910 GNMA POOL # 462363 7.000% 11/15/27 101.593 2,006,371 6.89%
980,907 GNMA POOL # 462444 6.500% 12/15/27 99.781 978,761 6.51%
1,494,712 GNMA POOL # 462623 6.500% 03/15/28 99.781 1,491,439 6.51%
996,571 GNMA POOL # 469226 6.500% 03/15/28 99.781 994,389 6.51%
1,968,577 GNMA POOL # 472028 6.500% 05/15/28 99.781 1,964,267 6.51%
2,451,773 GNMA POOL # 780429 7.500% 09/15/26 102.812 2,520,719 7.29%
915,147 GNMA POOL # 780518 7.000% 06/15/26 101.625 930,019 6.89%
----------- ------
Total Government Interests (identified cost, $101,143,071)-- 95.8% $102,982,800
COMMERCIAL PAPER - 3.6%
$ 3,905,000 AMERICAN EXPRESS CORP 5.951% 7/01/98 3,905,000 5.95%
----------- ------
Total Investments (identified cost $105,048,071)-- 99.4% $106,887,800
Other Assets, less Liabilities-- 0.6% 628,244
-----------
Net Assets-- 100.0% $107,516,044
============
(1) Unaudited.
See notes to financial statements
</TABLE>
<PAGE>
The Wright Managed
Blue Chip Investment Funds
Semi-Annual Report
OFFICERS AND TRUSTEES OF THE FUNDS
Peter M. Donovan, President and Trustee
H. Day Brigham, Jr., Vice President , Secretary and Trustee
A. M. Moody III, Vice President and Trustee
Judith R. Corchard, Vice President and Trustee
Winthrop S. Emmet, Trustee
Leland Miles, Trustee
Lloyd F. Pierce, Trustee
Richard E. Taber, Trustee
Raymond Van Houtte, Trustee
James L. O'Connor, Treasurer
William J. Austin, Jr., Assistant Treasurer
ADMINISTRATOR
Eaton Vance Management
24 Federal Street
Boston, Massachusetts 02110
INVESTMENT ADVISER
Wright Investors' Service
1000 Lafayette Boulevard
Bridgeport, Connecticut 06604
PRINCIPAL UNDERWRITER
Wright Investors' Service Distributors, Inc.
1000 Lafayette Boulevard
Bridgeport, Connecticut 06604
CUSTODIAN
Investors Bank & Trust Company
200 Clarendon Street
Boston, Massachusetts 02116
TRANSFER AND DIVIDEND DISBURSING AGENT
First Data Investor Services Group
Wright Managed Investment Funds
P.O. Box 5156
Westborough, Massachusetts 01581-9698
This report is not authorized for use as an offer of sale or a
solicitation of an offer to buy shares of a mutual fund unless
accompanied or preceded by a Fund's current prospectus.
