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Description of art work on front cover of the report
Three thin vertical blue stripes on the right side of the page
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SEMI-ANNUAL
REPORT
JUNE 30, 1995
WRIGHT
INTERNATIONAL
BLUE CHIP
EQUITIES FUND
THE WRIGHT MANAGED
INVESTMENT FUNDS
<PAGE>
THE WRIGHT MANAGED
INVESTMENT FUNDS
===============================================================================
WRIGHT INTERNATIONAL
BLUE CHIP
EQUITIES FUND (WIBC)
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.
TABLE OF CONTENTS
INVESTMENT
OBJECTIVES...................Inside Front Cover
LETTER TO
SHAREHOLDERS................................. 1
WRIGHT INTERNATIONAL
BLUE CHIP EQUITIES FUND (WIBC) --
Dividend Distributions....................... 3
WRIGHT INTERNATIONAL
BLUE CHIP EQUITIES FUND (WIBC) --
Portfolio of Investments..................... 4
Financial Statements......................... 7
<PAGE>
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND
===============================================================================
July 1995
To Shareholders:
Following a difficult 1994, in which many of the world's stock markets suffered
declines, the first half of 1995 was a more rewarding time for international
investors. With interest rates trending lower around the globe, practically
two-thirds of the world's 25 largest stock markets had returns of greater than
10% in U.S. dollars during the first half. The markets of Japan, Mexico, Italy
and Australia were important exceptions to the first half's rising trend.
The International Blue Chip Equities Fund had an 11.1% total return for 1995's
first half. Partly because of its relatively low weighting (13%) in the weak
Japanese stock market (which suffered a nearly 10% decline in dollars), the
International Blue Chip Equities Fund is well ahead of the international stock
market averages this year. The FT-Actuaries World ex U.S. stock market index --
in which Japanese stocks represent nearly half of total index weight -- had just
a 1.7% total return in U.S. dollar terms during the half.
Over the five years to June 1995, the International Blue Chip Equities Fund
averaged a 7.4% annual rate of total investment return in dollars, as compared
to a 4.8% annual rate of return for the FT World ex U.S. index. At mid-year
1995, the average price/earnings multiple for stocks in the International Blue
Chip Fund was 17.5, up from 16.8 at year-end 1994.
Wright continues to believe that the case for international financial
diversification is strong. The U.S. economic expansion is now in its fifth year,
and growth is slowing; in contrast, the economies of continental Europe and
Japan are in comparatively early stages of recovery, with significant profit
expansion still ahead. Global inflation is low, and favorable interest rate
trends are expected over the rest of 1995.
It should be understood that performance data quoted above represents past
performance which is not predictive of future performance and that the
investment return and principal value of an investment will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than their original
cost. Also, there are risks associated with international investing such as
currency fluctuations and potential political instability.
Sincerely,
Peter M. Donovan
President
<PAGE>
THE EQUITY TRUST -- WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC)
(unaudited)
===============================================================================
<TABLE>
N.A.V. Distri- Distri- Invstmnt 12 Month 5 Year Cum.
Period Per bution bution Shares Return Invstmnt Invstmnt Invstmnt
Ending Share $ P/S in Shares Owned Value YTD Return Return Return
(Annualized)(Annualized)
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/14/89 $10.00 100.00 $1,000.00
12/94 13.09 $0.05 0.003867 105.48 1,380.78 -1.64% -1.64% 5.74% 6.28%
1/95 12.68 105.48 1,337.53 -3.13% -9.06% 5.56% 5.55%
2/95 13.02 105.48 1,373.39 -0.53% -4.44% 7.06% 5.99%
3/95 13.73 105.48 1,448.28 4.89% 4.89% 8.45% 6.91%
4/95 14.11 105.48 1,488.37 7.79% 4.70% 9.21% 7.33%
5/95 14.39 105.48 1,517.90 9.93% 9.11% 7.95% 7.58%
6/95 14.54 105.48 1,533.73 11.08% 11.25% 7.37% 7.67%
</TABLE>
<PAGE>
<TABLE>
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC)
PORTFOLIO OF INVESTMENTS
JUNE 30, 1995 (UNAUDITED)
===============================================================================
Shares Value
-------------------------------------------------------------------------------
EQUITY INTERESTS -- 96.9%
<S> <C> <C>
AUSTRALIA -- 4.2%
Broken Hill Proprietary Co. ADR..... 17,930 $ 885,294
Broken Hill Proprietary............. 40,700 500,675
BTR Limited Wts. 1997*.............. 4,178 4,262
BTR Limited Wts. 1998*.............. 3,287 1,415
Coles Meyer Ltd ADR................ 61,325 1,556,122
Email Ltd........................... 600,760 1,463,572
F.H. Faulding (U.K.)................ 400,805 1,956,777
Lend Lease Corp. Ltd................ 137,040 1,750,042
Pacific Dunlop Ltd ADR.............. 139,290 1,201,376
-----------
$ 9,319,535
-----------
BELGIUM -- 1.8%
Delhaize Freres & Cie Le Lion SA.... 41,200 $ 1,852,986
GB Inno - AFV....................... 654 31,022
GB Inno - BM SA..................... 44,850 2,127,460
-----------
$ 4,011,468
-----------
CANADA -- 2.9%
Bombardier Inc. Class B............. 93,000 $ 2,259,203
British Columbia Telephone.......... 112,300 1,931,088
Corel Corporation*.................. 139,500 2,406,375
-----------
$ 6,596,666
-----------
DENMARK -- 4.6%
Berendsen Sophus A/S Class A........ 1,228 $ 115,782
Berendsen Sophus A/S Class B........ 16,630 1,564,886
Carlsburg A/S Pfd Class B........... 34,727 1,608,180
Icopal Group........................ 5,400 1,600,445
ISS International Service Sys. A/S.. 54,200 1,415,617
Novo-Nordisk AS..................... 19,000 2,013,153
Radiometer A/S...................... 32,250 1,869,826
-----------
$ 10,187,889
-----------
FRANCE -- 10.5%
Bongrain SA......................... 3,500 $ 2,097,617
Carrefour Supermarche............... 4,200 2,153,957
Castorama Dubois Inv................ 13,000 2,157,052
Compagnie Generale Des Eaux SA...... 19,920 2,219,957
Comptoirs Modernes SA............... 6,504 2,006,703
Docks De France SA.................. 11,200 1,708,141
Groupe Danone....................... 10,571 1,780,196
L'Air Liquide SA*................... 12,321 1,970,648
LeGrand SA.......................... 12,100 1,922,815
L'Oreal SA.......................... 7,350 1,846,033
LVMH Moet-Hennessy SA ADR.......... 55,220 2,001,725
Pernod Ricard SA.................... 23,280 1,532,623
-----------
$ 23,397,467
-----------
GERMANY -- 4.0%
Bayerische Motoren Werke AG......... 3,109 $ 1,710,675
Beiersdorf AG....................... 2,700 2,147,428
Douglas Holdings AG................. 6,400 2,406,739
Dyckerhoff AG....................... 3,950 1,256,643
Heidelberger Zement AG ............. 1,800 1,535,736
-----------
$ 9,057,221
-----------
HONG KONG -- 7.2%
China Light & Power Co. Ltd. ADR.... 311,276 $ 1,601,079
Hang Lung Dev. Co. Ltd. ADR......... 206,400 1,640,508
Hang Seng Bank Ltd. ADR............. 267,195 2,037,389
Hong Kong Aircraft Engineering Co... 741,000 1,924,822
Hong Kong & China Gas Co. ADR....... 939,132 1,498,855
Hong Kong Electric Holdings Ltd. ADR 530,520 1,803,237
Johnson Electric Holdings Ltd....... 897,500 1,809,450
Kowloon Motor Bus Co. (1933) Ltd.... 979,200 1,759,035
Swire Pacific Ltd. ADR.............. 261,400 1,993,201
-----------
$ 16,067,576
-----------
IRELAND -- 1.6%
Fyffes PLC.......................... 922,000 $ 1,731,608
Greencore Group PLC................. 255,000 1,934,813
-----------
$ 3,666,421
-----------
ITALY -- 0.8%
Sirti SPA........................... 241,000 $ 1,792,028
-----------
<PAGE>
JAPAN -- 12.5%
Chudenko Corp....................... 48,300 $ 1,916,597
Daiichi Pharmaceutical Co., Ltd..... 98,000 1,435,132
Ito-Yokado Co., Ltd. ADR............ 8,750 1,855,000
Kandenko Co., Ltd................... 103,400 1,416,518
Komatsu Seiren Co., Ltd............. 145,000 1,832,307
Kurita Water Industries Ltd......... 81,000 2,085,386
Kyodo Printing Co. Ltd.............. 138,000 1,531,979
National House Industrial Co., Ltd.. 90,000 1,668,735
Nintendo Corporation Ltd............ 26,700 1,538,777
Ono Pharmaceutical Co. Ltd.......... 29,000 1,260,349
Santen Pharmaceutical Co., Ltd...... 66,000 1,753,765
Seven-Eleven Japan Co., Ltd......... 19,800 1,419,381
Taisho Pharmaceutical Co., Ltd...... 75,000 1,452,615
Takasago Thermal Engineering Co..... 93,000 1,460,760
Yamanouchi Pharmaceutical Co., Ltd.. 92,000 2,075,226
York-Benimaru Co., Ltd.............. 42,000 1,587,247
Yurtec Corp......................... 79,800 1,735,338
-----------
$ 28,025,112
-----------
MALAYSIA -- 6.1%
Amalgamated Steel Mills Berhad......1,149,000 $ 1,706,380
Genting Berhad...................... 200,000 1,977,440
Guinness Anchor Berhad.............. 988,000 1,775,337
Hong Leong Indus Berhad............. 363,000 1,263,632
Perlis Plantations Berhard.......... 532,000 1,767,889
Shell Refining Co. Berhad........... 349,000 1,159,762
Shell Refining Co. Malaysia......... 187,500 603,750
Sime Darby Berhad................... 829,200 2,313,219
-----------
$ 13,567,409
-----------
MEXICO -- 1.7%
Cifra S.A. ADR..................... 895,000 $ 1,234,026
Kimberly Clark De Mexico............ 64,900 1,484,665
Telefonos de Mexico ADR............ 40,400 1,196,850
-----------
$ 3,915,541
-----------
NETHERLANDS -- 9.4%
CSM N.V............................ 46,000 $ 2,029,060
CSM Rts............................. 46,000 47,831
Elsevier Dutch Certificates......... 159,900 1,889,810
Gamma Holding N.V................... 27,590 1,425,470
Getronics N.V....................... 47,308 2,318,958
Getronics N.V. Rts.................. 47,308 $ 34,513
Hagemeyer N.V....................... 37,000 1,651,188
Hagemeyer N.V. Rts.................. 18,500 32,738
Heineken N.V........................ 10,700 1,620,480
Heineken N.V. Rts................... 10,700 400,801
Koninklijke Ahold N.V............... 61,325 2,198,103
Koninklijke Ahold N.V. Rts.......... 61,325 43,565
Nutricia............................ 29,000 2,013,369
Unilever N.V........................ 12,900 1,679,566
Verenigde Neder. Uitgeversbedrijven. 16,600 1,988,698
Wolters Kluwer N.V.*................ 20,400 1,801,008
-----------
$ 21,175,158
-----------
NEW ZEALAND -- 0.8%
Wilson & Horton..................... 320,000 $ 1,828,320
-----------
SINGAPORE -- 1.5%
Asia Pacific Breweries Ltd.......... 272,000 $ 1,586,250
Singapore Press Holdings Ltd........ 115,200 1,722,851
-----------
$ 3,309,101
-----------
SPAIN -- 2.5%
Banco Popular Espanol............... 11,600 $ 1,724,907
Empresa Nac de Electicidad SA....... 40,600 2,005,685
Repsol S.A.......................... 55,740 1,754,394
-----------
$ 5,484,986
-----------
SWEDEN -- 2.5%
Astra AB Class B.................... 58,500 $ 1,761,745
Gambro AB Series B.................. 121,700 1,757,202
Gullspangs Kraft - "B"Free.......... 10,000 125,824
Hennes & Mauritz AB Class B........ 31,600 1,851,144
-----------
$ 5,495,915
-----------
SWITZERLAND -- 3.6%
Nestle SA ADR....................... 34,600 $ 1,800,397
Sandoz AG........................... 2,800 1,932,377
SMH-Sch. Ges. Fuer AG*.............. 14,750 1,987,179
SMH-Sch. Ges. Fuer - New AG......... 470 302,303
Societe Generale de Surv. Hold. SA.. 1,175 2,042,590
-----------
$ 8,064,846
-----------
<PAGE>
UNITED KINGDOM -- 18.9%
Allied Colloids Group PLC........... 920,000 $ 1,811,112
BTR Ltd. PLC........................ 359,908 1,832,975
Cable & Wireless PLC ADR........... 99,700 2,043,850
Christian Salvesen PLC.............. 347,200 1,465,913
Farnell Electronics PLC............. 182,700 1,846,366
Grand Metropolitan PLC ADR......... 55,900 1,397,500
Halma PLC........................... 532,000 1,628,186
Kwik Save Group PLC................. 173,000 1,778,665
LaPorte PLC......................... 167,070 1,978,694
Marks & Spencer PLC................. 60,700 390,896
Marks & Spencer PLC ADR ............ 30,700 1,185,358
Morrison (Wm.) Supermarket.......... 850,000 1,998,520
Nurdin & Peacock PLC................ 624,000 1,740,648
Pearson PLC......................... 207,076 1,963,971
Polypipe PLC........................ 125,000 308,838
Powerscreen Int'l................... 433,100 2,209,156
Reckitt & Colman PLC................ 157,176 1,666,081
Sainsbury (J.) PLC.................. 262,186 1,845,134
Scapa Group PLC..................... 561,873 2,082,358
Seibe PLC........................... 220,724 2,209,536
Smith & Nephew PLC.................. 679,100 1,929,527
Smiths Industries PLC............... 210,100 1,736,455
Tesco PLC........................... 408,266 1,887,250
Weir Group PLC...................... 407,700 1,650,696
Wolseley PLC........................ 317,600 1,754,168
-----------
$ 42,341,853
-----------
TOTAL EQUITY INVESTMENTS -- 97.1%
(identified cost, $183,110,151) $ 217,304,512
-----------
RESERVE FUND -- 1.7%
Face Amount
American Express Corp.,
5.75%, 1/3/95...................$3,740,000 $ 3,740,000
-----------
TOTAL INVESTMENTS -- 98.8%
(identified cost, $186,850,151) $221,044,512
OTHER ASSETS,
LESS LIABILITIES -- 1.2% 2,684,839
-----------
NET ASSETS -- 100% $223,729,351
============
* Non-income-producing security.
ADR: American Depository Receipts
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND
===============================================================================
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1995 (UNAUDITED)
-------------------------------------------------------------------------------
<S> <C>
ASSETS:
Investments --
Identified cost........................ $186,850,151
Unrealized appreciation................ 34,194,361
------------
Total value (Note 1A)................ $221,044,512
Cash.................................. 29
Dividends receivable..................... 862,502
Receivable for refundable foreign taxes
withheld............................... 581,777
Receivable for fund shares sold.......... 2,713
Receivable for investments sold.......... 1,595,566
------------
Total Assets........................... $224,087,099
------------
LIABILITIES:
Trustee fees payable..................... $ 625
Custodian fee payable.................... 49,086
Accrued expenses and other liabilities... 4,574
Payable for investments purchaed......... 303,463
------------
Total Liabilities...................... $ 357,748
------------
NET ASSETS.................................. $223,729,351
=============
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........................... $187,431,753
Accumulated undistributed net realized loss
on investments and foreign currency
(computed on the basis of identified cost)... (1,455,298)
Unrealized appreciation of investments and trans-
lation of assets and liabilities in foreign currency
(computed on the basis of identified cost)... 34,240,244
Undistributed net investment income............. 3,512,652
------------
Net assets applicable to outstanding shares $223,729,351
=============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING.............................. 15,384,441
=============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST................... $14.54
=============
</TABLE>
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1995 (UNAUDITED)
-------------------------------------------------------------------------------
<TABLE>
INVESTMENT INCOME:
<S> <C>
Income --
Dividends.............................. $ 3,609,138
Interest............................... 96,453
Less: Foreign taxes................... (463,270)
-----------
Total Income......................... $ 3,242,321
------------
Expenses --
Investment Adviser fee (Note 2)........ $ 785,117
Administrator fee (Note 2)............. 130,560
Compensation of Trustees not affiliated with
the Investment Adviser or Administrator.. 1,614
Custodian fee (Note 2)................. 149,925
Transfer and dividend disbursing agent fees.. 16,383
Distribution expenses (Note 3)......... 203,786
Audit services......................... 31,500
Legal services......................... 1,380
Registration costs..................... 6,662
Printing............................... 4,395
Interest on loans...................... 2,878
Miscellaneous.......................... 3,107
------------
Total Expenses....................... $ 1,337,307
------------
Net Investment Income.............. $ 1,905,014
------------
REALIZED AND UNREALIZED GAIN ON
INVESTMENTS:
Net realized gain on investment and foreign
currency transactions (identified cost basis) $ 1,129,843
Change in unrealized appreciation
of investments and translation of assets
and liabilities in foreign currencies.. 18,429,046
------------
Net realized and unrealized gain on
investments and foreign currency... $ 19,558,889
------------
Net increase in net assets
from operations.................... $ 21,463,903
=============
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND
===============================================================================
<TABLE>
Six Months Ended Year Ended
STATEMENT OF CHANGES IN NET ASSETS June 30, 1995 Dec. 31, 1994
(UNAUDITED)
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From operations --
Net investment income........................................................ $ 1,905,014 $ 1,821,338
Net realized gain on investment and foreign currency transactions............ 1,129,843 238,478
Change in unrealized appreciation of investments and translation
of assets and liabilities in foreign currencies............................ 18,429,046 (7,495,702)
------------ ------------
Increase (decrease) in net assets from operations.................... $ 21,463,903 $ (5,435,886)
------------ ------------
Undistributed net investment income included in
price of shares sold and redeemed (Note 1D).................................. $ 28,505 $ 655,170
------------ ------------
Distributions to shareholders from net investment income....................... $ -- $ (1,467,856)
------------ ------------
Net increase from fund share transactions
(exclusive of amounts allocated to net investment income) (Note 4)........... $ 2,005,307 $ 106,409,645
------------ ------------
Net increase in net assets............................................ $ 23,497,715 $ 100,161,073
NET ASSETS:
At beginning of period......................................................... 200,231,636 100,070,563
============== ==============
At end of period............................................................... $ 223,729,351 $ 200,231,636
------------ ------------
UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED IN NET ASSETS.......................... $ 3,512,652 $ 1,579,133
============== ==============
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND
===============================================================================
<TABLE>
Year Ended December 31,
FINANCIAL HIGHLIGHTS 1995(2) 1994 1993 1992 1991 1990
(UNAUDITED)
------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period........ $ 13.090 $ 13.410 $ 10.520 $ 11.040 $ 9.520 $ 10.400
--------- --------- --------- --------- --------- ---------
Income (loss) from Investment Operations:
Net investment income(1)............... 0.125 0.127 0.107 0.094 0.115 0.164
Net realized and unrealized gain (loss)
on investments....................... 1.325 (0.347) 2.853 (0.524) 1.515 (0.874)
--------- --------- --------- --------- --------- ---------
Total income (loss)
from investment operations......... 1.450 (0.220) 2.960 (0.430) 1.630 (0.710)
--------- --------- --------- --------- --------- ---------
Less Distributions:
From net investment income............. -- (0.100) (0.070) (0.090) (0.110) (0.170)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period.............. $ 14.540 $ 13.090 $ 13.410 $ 10.520 $ 11.040 $ 9.520
========== ========== ========== ========== ========== ==========
Total Return .............................. 11.08%(4) (1.64%) 28.22% (3.94%) 17.21% (6.92%)
Ratios/Supplemental Data
Net assets, end of year (000 omitted).. $223,729 $200,232 $100,071 $ 74,409 $ 51,802 $ 18,842
Ratio of expenses to average net assets 1.31%(3) 1.31% 1.46% 1.51% 1.67% 1.65%
Ratio of net investment income to average
net assets........................... 1.87%(3) 1.00% 0.67% 0.81% 1.12% 1.66%
Portfolio Turnover Rate................ 8%(4) 12% 30% 15% 23% 13%
<FN>
(1) For the year ended December 31, 1990, the operating expenses of the Fund
were reduced by a reduction of the investment adviser fee and distribution fee.
Had such actions not been undertaken, the net investment income per share and
the ratios would have been as follows:
Year Ended
December 31, 1990
Net investment income per share........................... $0.092
==========
Ratios (As a percentage of average net assets):
Expenses ............................................ 2.38%
==========
Net investment income................................ 0.93%
==========
(2) For the six months ended June 30,1995.
(3) Annualized.
(4) Not annualized.
</FN>
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
===============================================================================
(1) SIGNIFICANT ACCOUNTING POLICIES
Wright International Blue Chip Equities Fund (WIBC) is a diversified series
of The Wright Managed Equity Trust (the "Trust"). The Trust is registered under
the Investment Company Act of 1940, as amended, as an open-end, management
investment company. 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 -- 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 60 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.
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. Federal Taxes -- WIBC's policy is to comply with the provisions of the
Internal Revenue Code (the Code) applicable 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. 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. At December 31, 1994, WIBC, for federal
income tax purposes, had a capital loss carryover of $2,585,141, which
will reduce taxable income arising from future net realized gain on
investments, if any, to the extent permitted by the Code, and thus will
reduce the amount of the distribution to shareholders which would
otherwise be necessary to relieve WIBC of any liability for federal
income or excise tax. Pursuant to the Code, such capital loss carryover
will expire as follows:
1999 2000 2001
---------------------------------------------
$929,371 $1,404,904 $250,866
---------------------------------------------
D. Equalization -- WIBC follows 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,
<PAGE>
undistributed net investment income per share is
unaffected by sales or reacquisitions of Fund shares.
E. Distributions -- 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, are classified as distributions in excess
of net investment income or accumulated net realized gains.
F. Other -- Investment transactions are accounted for on the date the
investments are purchased or sold. Dividend income and distributions to
shareholders are recorded on the ex-dividend date. 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. Interest
income is recorded on the accrual basis.
(2) INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The Trust has engaged Wright Investors' Service (Wright) to perform
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 period ended June 30, 1995, the effective annual rate was 0.77% for
WIBC. 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,
1995, the effective annual rate was 0.13% for WIBC. 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. The custodian fee was paid to Investors Bank & Trust
Company (IBT), an affiliate of Eaton Vance, for its services as custodian of the
Trust. Pursuant to the custodian agreement, IBT receives a fee reduced by
credits which are determined based on the average daily cash balances the Trust
maintains with IBT. Certain of the Trustees and officers of the Trust are
Trustees or officers of the above organizations. See Note 3.
(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 WIBC will
pay the Principal Underwriter, Wright Investors' Service Distributors, Inc., a
subsidiary of Wright Investors' Service, an annual rate of 2/10 of 1% of WIBC's
average daily net assets for activities primarily intended to result in the sale
of WIBC's shares.
(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 WIBC shares were as follows:
<PAGE>
<TABLE>
Six Months Ended Year Ended
June 30, 1995 December 31, 1994
------------------------ ------------------------
Shares Amount Shares Amount
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Sold ............................................... 2,644,278 $36,026,039 12,245,362 $165,447,724
Issued to shareholders in payment
of distributions declared.......................... 46 601 88,270 1,142,033
Reacquired........................................... (2,552,223) (34,021,333) (4,503,339) (60,180,112)
---------- ----------- ---------- ------------
Net increase................................... 92,101 $ 2,005,307 7,830,293 $106,409,645
=========== ============ =========== =============
----------------------------------------------------------------------------------------------------------------------------
</TABLE>
(5) INVESTMENT TRANSACTIONS
Purchases and sales of investments, other than U.S. Government securities
and short-term obligations, for the period ended June 30, 1995, were as follows:
------------------------------------------------
Purchases............................ $15,295,615
============
Sales................................ $15,648,824
============
------------------------------------------------
(6) FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES
The cost and unrealized appreciation (depreciation) of the investment
securities owned at June 30, 1995, as computed on a federal income tax basis,
are as follows:
------------------------------------------------
Aggregate cost....................... $186,850,151
============
Gross unrealized appreciation........ $ 40,393,967
Gross unrealized depreciation........ (6,199,606)
-----------
Net unrealized appreciation.......... $ 34,194,361
============
------------------------------------------------
(7) FINANCIAL INSTRUMENTS
WIBC may trade in financial instruments with off-balance sheet risk in the
normal course of its investing activities to assist in managing exposure to
various market risks. These financial instruments include written options,
forward foreign currency exchange contracts, and futures contracts and may
involve, to a varying degree, elements of risk in excess of the amounts
recognized for financial statement purposes. WIBC holds no such instruments at
June 30, 1995.
(8) LINE OF CREDIT
The Fund participates with other funds managed by Wright in a line of
credit with a bank which allows the Funds to borrow up to $20,000,000
collectively. The line of credit consists of a $10,000,000 committed facility
and a $10,000,000 uncommitted facility. Interest is charged to each fund based
on its borrowings, at a rate equal to the bank's base rate. In addition, the
funds pay a prorated commitment fee computed at a rate of 1/4 of 1% of
$10,000,000 less the value of any borrowing. The Fund did not have any
significant borrowings under the line of credit during the period ended June 30,
1995.
<PAGE>
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Description of art work on back cover of report
Three thin vertical blue stripes on the right side of the page.
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WRIGHT
INTERNATIONAL
BLUE CHIP
EQUITIES FUND
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
Winthrop S. Emmet, Trustee
Leland Miles, Trustee
Lloyd F. Pierce, Trustee
George R. Prefer, 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
24 Federal Street
Boston, Massachusetts 02110
TRANSFER AND DIVIDEND DISBURSING AGENT
The Shareholder Services Group, Inc.
Wright Managed Investment Funds
P.O. Box 1559
Boston, Massachusetts 02104
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.
