ANNUAL
REPORT
DECEMBER 31, 1994
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
================================================================================
February, 1995
To Shareholders:
Following 1993's strong showing by the world's stock markets, many of the
major markets suffered declines last year. In the wake of the Federal
Reserve's first interest rate increase in February of 1994, most global
markets experienced volatility and generally declining price levels
during 1994.
The International Blue Chip Equities Fund had a -1.6% total return
decline for 1994, down from a 28.2% advance in 1993. Partly because of
its relatively low weighting (14%) in the strong Japanese stock market
(which had a +21.5% total return), the International Blue Chip Equities
Fund lagged the international stock market averages last year. In
contrast, the FT-Actuaries World ex U.S. total return index in which
Japanese stocks represent 49% of total index weight had an 8.4% total
return for 1994. Excluding Japan and the U.S., the FT's World index was
down 3.0% in U.S. dollar terms during 1994.
Over the past five years, the International Blue Chip Equities Fund has
averaged a 5.7% annual rate of total investment return in dollars, as
compared to a 1.7% annual rate of return for the FT World ex U.S. index.
At the end of 1994, the average price/earnings multiple for stocks in the
International Blue Chip Fund was 16.8, as compared to P/E multiples of
24.9 for the FT World ex U.S. index and 16.0 for the FT World ex Japan.
Considering the recent market volatility, Wright believes that the case
for international financial diversification remains strong. The U.S.
economic expansion is about to enter its fourth year; in contrast, the
economies of continental Europe and Japan are in the early stages of
recovery, with significant profit expansion lying ahead. Global inflation
is expected to be low for some time to come. Although interest rates rose
virtually everywhere during 1994, a more favorable interest rate
environment is expected to develop over the course of 1995.
<PAGE>
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND
================================================================================
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
<TABLE>
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND
Growth of $10,000 invested 10/1/89* through 12/31/94
<CAPTION>
Annual Total Return
---------------------------------------------
Lst 1 Yr Lst 5 Yrs Since Incept*
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Wright Int'l Blue Chip Equities Fund -1.6% +5.7% +6.1%
FT World Index +8.4% +1.7% +2.5%
Wright Int'l Fiduciary Equity Index +10.7% +3.5% +4.5%
</TABLE>
<TABLE>
The cumulative total return of a U.S. $10,000 investment in the
WRIGHT INT'L BLUE CHIP EQUITIES FUND on 10/1/89
would have grown to $13,631 by December 31, 1994.
The following plotting points are used for comparison
in the total investment return mountain chart.
<CAPTION>
Date Wright Int'l BlFT World Wright Int'l Fiduciary
Equities Fund Index Equity Index
- ---------------------------------------------------------------------
<S> <C> <C> <C>
09/30/89 $10,000 $10,000 $10,000
12/31/89 $10,312 $10,490 $10,587
12/31/90 $ 9,599 $ 8,060 $ 8,946
12/31/91 $11,251 $ 9,140 $ 9,971
12/31/92 $10,807 $ 7,940 $ 8,383
12/31/93 $13,858 $10,510 $11,362
12/31/94 $13,631 $11,390 $12,576
</TABLE>
Notes: *: For comparison with other averages, the investment results are shown
from the first month-end since the Fund's inception. The investment results of
Wright International Blue Chip Equities Fund are net of all fees and expenses
charged to the Fund. No fees or expenses have been deducted from the other
averages. The Total Investment Return is the % return of an initial $10,000
investment made at the beginning of the period to the ending redeemable value
assuming all dividends and distributions are reinvested. Past performance is
not predictive of future performance.
<PAGE>
<TABLE>
<CAPTION>
THE EQUITY TRUST - WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC)
==========================================================================================================
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
12/93 13.41 $0.02 0.001529 104.68 1,403.77 28.22% 28.22% N/A 8.22%
1/94 14.05 104.68 1,470.77 4.77% 34.60% N/A 9.21%
2/94 13.73 104.68 1,437.27 2.39% 28.24% N/A 8.48%
3/94 13.19 104.68 1,380.74 -1.64% 17.73% N/A 7.38%
4/94 13.58 104.68 1,421.57 1.27% 17.15% N/A 7.93%
5/94 13.29 104.68 1,391.21 -0.89% 13.48% N/A 7.30%
6/94 13.12 0.05 0.003782 105.08 1,378.61 -1.79% 16.21% N/A 6.97%
7/94 13.66 105.08 1,435.35 2.25% 19.83% N/A 7.69%
8/94 13.91 105.08 1,461.62 4.12% 14.15% N/A 7.95%
9/94 13.61 105.08 1,430.10 1.88% 12.15% 7.14% 7.35%
10/94 13.88 105.08 1,458.47 3.90% 9.87% 8.72% 7.64%
11/94 13.21 105.08 1,388.07 -1.12% 7.53% 7.21% 6.50%
12/94 13.09 0.05 0.003867 105.48 1,380.78 -1.64% -1.64% 5.74% 6.28%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1994
=====================================================================
Shares Value
- ---------------------------------------------------------------------
<S> <C> <C>
EQUITY INTERESTS - 99.0%
AUSTRALIA - 5.3%
Broken Hill Proprietary Co. ADR . . . . 16,300 $ 1,004,488
Broken Hill Proprietary . . . . . . . . 37,000 562,285
BTR Limited WTS 1995/1996*. . . . . . . 2,245 1,846
BTR Limited WTS 1997* . . . . . . . . . 4,178 4,123
BTR Limited WTS 1998* . . . . . . . . . 3,287 1,674
Coles Meyer Ltd ADR. . . . . . . . . . 61,325 1,694,103
Email Ltd . . . . . . . . . . . . . . . 600,760 1,709,463
F.H. Faulding (U.K.). . . . . . . . . . 370,600 2,068,875
Lend Lease Corp. Ltd. . . . . . . . . . 133,845 1,656,278
Pacific Dunlop Ltd ADR. . . . . . . . . 139,290 1,497,368
Pacific Dunlop Ltd. . . . . . . . . . . 112,860 300,151
-------------
$ 10,500,654
-------------
BELGIUM - 1.7%
Delhaize Freres & Cie Le Lion SA. . . . 41,200 $ 1,673,387
GB Inno - AFV . . . . . . . . . . . . . 789 30,657
GB Inno - BM SA . . . . . . . . . . . . 44,715 1,765,545
-------------
$ 3,469,589
-------------
CANADA - 3.1%
Bombardier Inc. Class B . . . . . . . . 93,000 $ 1,649,243
British Columbia Telephone. . . . . . . 74,300 1,271,273
Cara Operations Ltd. Class A. . . . . . 621,900 1,440,880
Corel Corporation*. . . . . . . . . . . 139,500 1,926,844
-------------
$ 6,288,240
-------------
DENMARK - 4.1%
Berendsen Sophus A/S Class A. . . . . . 1,228 $ 100,002
Berendsen Sophus A/S Class B. . . . . . 16,630 1,348,785
Carlsburg A/S Pfd Class B . . . . . . . 44,727 1,913,139
Icopal Group. . . . . . . . . . . . . . 7,100 1,868,882
ISS International Service Sys. A/S. . . 54,200 1,471,254
Radiometer A/S. . . . . . . . . . . . . 32,250 1,490,869
-------------
$ 8,192,931
-------------
FRANCE - 9.7%
Bongrain SA . . . . . . . . . . . . . . 3,500 $ 1,849,180
BSN - Gervais Danone. . . . . . . . . . 10,340 1,450,990
Carrefour Supermarche . . . . . . . . . 4,200 1,740,590
Castorama Dubois Inv. . . . . . . . . . 13,000 1,624,544
Compagnie Generale Des Eaux SA. . . . . 19,920 1,936,951
Comptoirs Modernes SA . . . . . . . . . 6,504 1,632,855
Docks De France SA. . . . . . . . . . . 11,200 1,370,229
L'Air Liquide SA* . . . . . . . . . . . 12,321 1,648,186
LeGrand SA. . . . . . . . . . . . . . . 1,210 1,469,002
L'Oreal SA. . . . . . . . . . . . . . . 7,350 1,499,607
LVMH Moet Hennessy SA . . . . . . . . . 550 86,867
LVMH Moet Hennessy SA ADR. . . . . . . 55,220 1,739,430
Pernod Ricard SA. . . . . . . . . . . . 23,280 1,362,997
-------------
$ 19,411,428
-------------
GERMANY - 4.0%
Bayerische Motoren Werke AG . . . . . . 3,109 $ 1,546,167
Beiersdorf AG . . . . . . . . . . . . . 2,700 1,770,006
Douglas Holdings AG . . . . . . . . . . 6,400 1,802,235
Dyckerhoff AG . . . . . . . . . . . . . 3,950 1,352,128
Dyckerhof AG - Pfd New* . . . . . . . . 265 89,857
Heidelberger Zement AG . . . . . . . . 1,800 1,453,207
-------------
$ 8,013,600
-------------
HONG KONG - 6.8%
China Light & Power Co. Ltd. ADR. . . . 311,276 $ 1,327,592
Hang Lung Dev. Co. Ltd. ADR . . . . . . 206,400 1,467,194
Hang Seng Bank Ltd. ADR . . . . . . . . 267,195 1,916,617
Hong Kong & China Gas Co. ADR . . . . . 782,610 1,264,307
Hong Kong Aircraft Engineering Co . . . 361,000 1,203,646
Hong Kong Electric Holdings Ltd. ADR. . 530,520 1,450,176
Johnson Electric Holdings Ltd . . . . . 660,500 1,515,121
Kowloon Motor Bus Co. (1933) Ltd. . . . 996,000 1,776,266
Swire Pacific Ltd. ADR. . . . . . . . . 261,400 1,628,444
-------------
$ 13,549,363
-------------
IRELAND - 1.5%
Fyffes PLC. . . . . . . . . . . . . . . 922,000 $ 1,461,647
Greencore Group PLC . . . . . . . . . . 255,000 1,617797
-------------
$ 3,079,444
-------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC) - continued
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1994
=====================================================================
Shares Value
- ---------------------------------------------------------------------
<S> <C> <C>
ITALY - 0.8%
Sirti SPA . . . . . . . . . . . . . . . 241,000 $ 1,558,378
-------------
JAPAN - 13.9%
Chudenko Corp . . . . . . . . . . . . . 46,000 $ 1,683,209
Daiichi Pharmaceutical Co., Ltd . . . . 98,000 1,542,451
Ito-Yokado Co., Ltd. ADR. . . . . . . . 8,750 1,872,500
Kandenko Co., Ltd . . . . . . . . . . . 94,000 1,583,157
Komatsu Seiren Co., Ltd . . . . . . . . 109,000 1,507,971
Kurita Water Industries Ltd . . . . . . 56,000 1,459,651
Kyodo Printing Co. Ltd. . . . . . . . . 138,000 1,618,643
National House Industrial Co., Ltd. . . 117,000 1,771,123
Nintendo Corporation Ltd. . . . . . . . 26,700 1,442,737
Ono Pharmaceutical Co. Ltd. . . . . . . 29,000 1,395,489
Santen Pharmaceutical Co., Ltd. . . . . 75,000 2,082,705
Seven Eleven Japan Co., Ltd . . . . . . 18,000 1,445,414
Taisho Pharmaceutical Co., Ltd. . . . . 75,000 1,436,093
Takasago Thermal Engineering Co.. . . . 93,000 1,398,497
Yamanouchi Pharmaceutical Co., Ltd. . . 92,000 1,890,729
York-Benimaru Co., Ltd. . . . . . . . . 42,000 1,839,999
Yurtec Corp . . . . . . . . . . . . . . 79,800 1,816,001
-------------
$ 27,786,369
-------------
MALAYSIA - 6.4%
Amalgamated Steel Mills Berhad. . . . . 1,149,000 $ 1,745,906
Genting Berhad. . . . . . . . . . . . . 261,000 2,238,467
Guinness Anchor Berhad. . . . . . . . . 988,000 1,655,987
Hong Leong Indus Berhad . . . . . . . . 363,000 1,876,492
Perlis Plantations Berhard. . . . . . . 532,000 1,750,067
Shell Refining Co. Berhad . . . . . . . 349,000 1,107,063
Shell Refining Co. Malaysia . . . . . . 187,500 565,838
Sime Darby Berhad . . . . . . . . . . . 829,200 1,899,697
-------------
$ 12,839,517
-------------
MEXICO - 1.7%
Cifra S.A. ADR . . . . . . . . . . . . 608,900 $ 1,248,671
Kimberly Clark De Mexico* . . . . . . . 42,400 1,002,094
Telefonos de Mexico ADR. . . . . . . . 27,400 1,123,400
-------------
$ 3,374,165
-------------
NETHERLANDS - 10.2%
CSM N.V.. . . . . . . . . . . . . . . . 46,000 $ 1,808,393
Elsevier Dutch Certificates . . . . . . 203,000 2,118,001
Gamma Holding N.V.. . . . . . . . . . . 27,590 1,374,092
Getronics N.V.* . . . . . . . . . . . . 47,308 1,726,193
Hagemeyer N.V.. . . . . . . . . . . . . 23,400 1,908,635
Heineken N.V. . . . . . . . . . . . . . 13,400 2,022,205
Koninklijke Ahold N.V.. . . . . . . . . 61,325 1,898,291
Nutricia . . . . . . . . . . . . . . . 40,200 1,962,729
Unilever N.V. . . . . . . . . . . . . . 16,500 1,939,331
Verenigde Nederlandse
Uitgeversbedrijven. . . . . . . . . . 16,600 1,724,302
Wolters Kluwer N.V.*. . . . . . . . . . 26,600 1,968,780
-------------
$ 20,450,952
-------------
SINGAPORE - 1.7%
Asia Pacific Breweries Ltd. . . . . . . 136,000 $ 1,632,367
Singapore Press Holdings Ltd. . . . . . 96,000 1,744,858
-------------
$ 3,377,225
-------------
SPAIN - 2.3%
Banco Popular Espanol . . . . . . . . . 11,600 $ 1,379,221
Empresa Nac de Electicidad SA . . . . . 40,600 1,653,301
Repsol S.A. . . . . . . . . . . . . . . 55,740 1,511,808
-------------
$ 4,544,330
-------------
SWEDEN - 2.8%
Astra AB Class B. . . . . . . . . . . . 79,300 $ 2,023,070
Gambro AB Series B. . . . . . . . . . . 162,000 1,951,938
Hennes & Mauritz AB Class B. . . . . . 31,600 1,620,840
-------------
$ 5,595,848
-------------
SWITZERLAND - 3.0%
Nestle SA ADR . . . . . . . . . . . . . 34,600 $ 1,648,486
Nestle SA . . . . . . . . . . . . . . . 100 95,300
Sandoz AG . . . . . . . . . . . . . . . 2,800 1,459,381
SMH Sch. Ges. Fuer AG*. . . . . . . . . 8,350 918,915
SMH Sch. Ges. Fuer New AG . . . . . . 470 233,833
Societe Generale de Surv. Hold. SA. . . 1,175 1,625,334
-------------
$ 5,981,249
-------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC) - continued
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1994
=====================================================================
Shares Value
- ---------------------------------------------------------------------
<S> <C> <C>
UNITED KINGDOM - 20.0%
AAH Holdings PLC. . . . . . . . . . . . 305,787 $ 1,614,280
BTR Ltd. PLC. . . . . . . . . . . . . . 348,516 1,550,478
Cable & Wireless PLC . . . . . . . . . 6,900 40,749
Cable & Wireless PLC ADR . . . . . . . 99,700 1,744,750
Christian Salvesen PLC. . . . . . . . . 347,200 1,473,933
Farnell Electronics PLC . . . . . . . . 182,700 1,473,914
Glaxo Holdings PLC ADR. . . . . . . . . 107,400 2,188,275
Grand Metropolitan PLC ADR . . . . . . 55,900 1,397,500
Grand Metropolitan PLC. . . . . . . . . 6,266 40,048
Halma PLC . . . . . . . . . . . . . . . 532,000 1,775,071
Kwik Save Group PLC . . . . . . . . . . 173,000 1,485,101
LaPorte PLC . . . . . . . . . . . . . . 167,070 1,876,480
Marks & Spencer PLC . . . . . . . . . . 60,700 378,920
Marks & Spencer PLC ADR . . . . . . . . 30,700 1,146,955
Morrison (Wm.) Supermarket. . . . . . . 850,000 1,877,480
Nurdin & Peacock PLC. . . . . . . . . . 624,000 1,563,994
Pearson PLC . . . . . . . . . . . . . . 207,076 1,800,319
Powerscreen Int'l . . . . . . . . . . . 433,100 1,594,371
Reckitt & Colman PLC. . . . . . . . . . 155,327 1,423,417
Sainsbury (J.) PLC. . . . . . . . . . . 262,186 1,688,032
Scapa Group PLC . . . . . . . . . . . . 561,873 1,672,303
Seibe PLC . . . . . . . . . . . . . . . 219,000 1,907,424
Smith & Nephew PLC. . . . . . . . . . . 679,100 1,627,599
Smiths Industries PLC . . . . . . . . . 210,100 1,441,538
Tesco PLC . . . . . . . . . . . . . . . 408,266 1,592,482
Weir Group PLC. . . . . . . . . . . . . 407,700 1,801,015
Wolseley PLC. . . . . . . . . . . . . . 158,800 1,947,775
-------------
$ 40,124,203
-------------
TOTAL EQUITY INTEREST - 99.0%
(identified cost, $182,333,517) $ 198,137,485
-------------
RESERVE FUND 1.1%
Face Amount
-----------
American Express Corp.,
5.75%, 1/3/95. . . . . . . . . . . . . $2,300,000 $ 2,300,000
-------------
TOTAL INVESTMENTS - 100.1%
(identified cost, $184,633,517) $ 200,437,485
OTHER ASSETS,
LESS LIABILITIES - (0.1%) (205,849)
-------------
NET ASSETS - 100% $ 200,231,636
=============
</TABLE>
* Non-income-producing security.
ADR: American Depository Receipts
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND
===============================================================================
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1994
- -------------------------------------------------------------------------------
<S> <C>
ASSETS:
Investments -
Identified cost . . . . . . . . . . . . . . . . . . . $ 184,633,517
Unrealized appreciation . . . . . . . . . . . . . . . 15,803,968
---------------
Total Value (Note 1A). . . . . . . . . . . . . . . . $ 200,437,485
Cash . . . . . . . . . . . . . . . . . . . . . . . . . 73,932
Dividends receivable . . . . . . . . . . . . . . . . . 382,560
Receivable for refundable foreign taxes withheld . . . 283,867
Receivable for fund shares sold. . . . . . . . . . . . 98,926
---------------
Total Assets. . . . . . . . . . . . . . . . . . . $ 201,276,770
---------------
LIABILITIES:
Payable for fund shares reacquired . . . . . . . . . . $ 949,241
Trustee fees payable . . . . . . . . . . . . . . . . . 312
Custodian fee payable. . . . . . . . . . . . . . . . . 72,465
Accrued expenses and other liabilities . . . . . . . . 23,116
---------------
Total Liabilities . . . . . . . . . . . . . . . . $ 1,045,134
---------------
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . $ 200,231,636
===============
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. . . . . . . . . . . . . . . . . . . $ 185,426,446
Accumulated undistributed net realized loss
on investments and foreign currency
(computed on the basis of identified cost) . . . . . . (2,585,141)
Unrealized appreciation of investments and trans-
lation of assets and liabilities in foreign currency
(computed on the basis of identified cost) . . . . . . 15,811,198
Undistributed net investment income. . . . . . . . . . . . 1,579,133
---------------
Net assets applicable to outstanding shares. . . . . . $ 200,231,636
==============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING. . . . . . . . . . . . . . . . . . . . . . 15,292,340
==============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST . . . . . . . . . . . . . . . . $13.09
==============
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1994
=================================================================================================
<S> <C>
INVESTMENT INCOME:
Income -
Dividends . . . . . . . . . . . . . . . . . . . . $ 4,384,498
Interest. . . . . . . . . . . . . . . . . . . . . 283,955
Less: Foreign taxes. . . . . . . . . . . . . . . (471,753)
---------------
Total Income . . . . . . . . . . . . . . . . . . $ 4,196,700
---------------
Expenses -
Investment Adviser fee (Note 2) . . . . . . . . . $ 1,394,066
Administrator fee (Note 2). . . . . . . . . . . . 248,916
Compensation of trustees not affiliated with
the investment adviser or administrator. . . . . 2,117
Custodian fee (Note 2). . . . . . . . . . . . . . 268,696
Transfer and dividend disbursing agent fees. . . 23,134
Distribution expenses (Note 3). . . . . . . . . . 363,055
Audit services. . . . . . . . . . . . . . . . . . 29,733
Legal services. . . . . . . . . . . . . . . . . . 2,592
Registration costs. . . . . . . . . . . . . . . . 34,262
Printing. . . . . . . . . . . . . . . . . . . . . 4,837
Interest on loans . . . . . . . . . . . . . . . . 2,040
Miscellaneous . . . . . . . . . . . . . . . . . . 1,914
---------------
Total Expenses . . . . . . . . . . . . . . . . . $ 2,375,362
---------------
Net Investment Income . . . . . . . . . . . $ 1,821,338
---------------
REALIZED AND UNREALIZED LOSS ON
INVESTMENTS:
Net realized gain on investment and foreign
currency transactions (identified cost basis) . . $ 238,478
Change in unrealized appreciation
of investments and translation of assets
and liabilities in foreign currencies . . . . . . (7,495,702)
---------------
Net realized and unrealized gain (loss) on
investments and foreign currency. . . . . . $ (7,257,224)
---------------
Net decrease in net assets
from operations . . . . . . . . . . . . . . $ (5,435,886)
===============
</TABLE>
See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND
Year Ended
December 31,
-----------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS 1994 1993
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From operations
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,821,338 $ 546,636
Net realized gain (loss) on investment and foreign currency transactions. . 238,478 (250,865)
Change in unrealized appreciation of investments and translation
of assets and liabilities in foreign currencies. . . . . . . . . . . . . . (7,495,702) 20,315,753
--------------- ---------------
Increase (decrease) in net assets from operations. . . . . . . . . . . . . $ (5,435,886) $ 20,611,524
--------------- ---------------
Undistributed net investment income included in
price of shares sold and redeemed (Note 1D) . . . . . . . . . . . . . . . . $ 655,170 $ 86,913
--------------- ---------------
Distributions to shareholders from net investment income . . . . . . . . . . . . $ (1,467,856) $ (496,372)
--------------- ---------------
Net increase from fund share transactions (exclusive of
amounts allocated to net investment income) (Note 4). . . . . . . . . . . . $ 106,409,645 $ 5,459,962
--------------- ---------------
Net increase in net assets . . . . . . . . . . . . . . . . . . . . . . . . $ 100,161,073 $ 25,662,027
NET ASSETS:
At beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,070,563 74,408,536
------------- -------------
At end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 200,231,636 $ 100,070,563
============= =============
UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED IN NET ASSETS . . . . . . . . . . . . . $ 1,579,133 $ 570,481
============= =============
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND
Year Ended December 31,
-----------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1994 1993 1992 1991 1990
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA
Net asset value, beginning of year. . . . . . . . . . . . $ 13.410 $ 10.520 $ 11.040 $ 9.520 $ 10.400
-------- -------- -------- -------- --------
Income (loss) from Investment Operations:
Net investment income[1]. . . . . . . . . . . . . . . $ 0.127 $ 0.107 $ 0.094 $ 0.115 $ 0.164
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . . . . . . . (0.347) 2.853 (0.524) 1.515 (0.874)
--------- --------- --------- --------- ---------
Total income (loss) from investment operations. . . $ (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 year. . . . . . . . . . . . . . . $ 13.090 $ 13.410 $ 10.520 $ 11.040 $ 9.520
========= ========= ========= ========= =========
Total Return. . . . . . . . . . . . . . . . . . . . . . . (1.64%) 28.22% (3.94%) 17.21% (6.92%)
Ratios/Supplemental Data
Net assets, end of year (000 omitted) . . . . . . . . $200,232 $100,071 $ 74,409 $51,802 $ 18,842
Ratio of expenses to average net assets . . . . . . . 1.31% 1.46% 1.51% 1.67% 1.65%
Ratio of net investment income to average
net assets . . . . . . . . . . . . . . . . . . . . . 1.00% 0.67% 0.81% 1.12% 1.66%
Portfolio Turnover Rate . . . . . . . . . . . . . . . 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 investment
income per share and the ratios would have been as follows:
</FN>
</TABLE>
<TABLE>
<CAPTION>
Year Ended
-------------------------
December 31, 1990
- -------------------------------------------------------------------------------------------------------------------------
<S> <C>
Net investment income per share . . . . . . . . . $ 0.092
=======
Ratios (As a percentage of average net assets):
Expenses. . . . . . . . . . . . . . . . . . . 2.38%
=======
Net investment income . . . . . . . . . . . . 0.93%
=======
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND
NOTES TO FINANCIAL STATEMENTS
================================================================================
(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:
<TABLE>
1999 2000 2001
- --------------------------------------------------------------------------
<S> <C> <C>
$929,371 $1,404,904 $250,866
- --------------------------------------------------------------------------
</TABLE>
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, undistributed net
investment income per share
<PAGE>
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND
NOTES TO FINANCIAL STATEMENTS - continued
================================================================================
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 year ended December 31, 1994, 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 year
ended December 31, 1994, the effective annual rate was 0.14% 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>
<CAPTION>
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND
NOTES TO FINANCIAL STATEMENTS - continued
================================================================================
Year Ended December 31,
---------------------------------------------------------
1994 1993
---------------------------------------------------------
Shares Amount Shares Amount
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Sold. . . . . . . . . . . . . . . . . . 12,245,362 $165,447,724 2,400,553 $28,144,997
Issued to shareholders in payment
of distributions declared . . . . . . 88,270 1,142,033 32,767 388,193
Reacquired. . . . . . . . . . . . . . . (4,503,339) (60,180,112) (2,045,695) (23,073,228)
----------- ------------ ---------- -----------
Net increase. . . . . . . . . . . . 7,830,293 $106,409,645 387,625 $ 5,459,962
========== ============ ========== ===========
- ------------------------------------------------------------------------------------------------------
</TABLE>
(5) INVESTMENT TRANSACTIONS
Purchases and sales of investments, other than U.S. Government securities
and short-term obligations, for the year ended December 31, 1994, were as
follows:
<TABLE>
- --------------------------------------------------------------------------------
<S> <C>
Purchases . . . . . . . . . . . . . . . . . . $126,645,853
============
Sales . . . . . . . . . . . . . . . . . . . . $ 20,827,978
============
- --------------------------------------------------------------------------------
</TABLE>
(6) FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES
The cost and unrealized appreciation (depreciation) of the investment
securities owned at December 31, 1994, as computed on a federal income tax
basis, are as follows:
<TABLE>
- --------------------------------------------------------------------------------
<S> <C>
Aggregate cost. . . . . . . . . . . . . . . . $184,633,517
=============
Gross unrealized appreciation . . . . . . . . $ 23,583,592
Gross unrealized depreciation . . . . . . . . (7,779,624)
-------------
Net unrealized appreciation . . . . . . . . . $ 15,803,968
=============
- --------------------------------------------------------------------------------
</TABLE>
(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
December 31, 1994.
(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 $5,000,000 committed facility and a $15,000,000
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 facility
fee computed at a rate of 1/4 of 1% on the unused portion of the $5,000,000
facility. The Fund did not have any significant borrowings under the line of
credit during the year ended December 31, 1994.
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Trustees and Shareholders of
The Wright Managed Equity Trust:
We have audited the accompanying statement of assets and liabilities,
including the portfolio of investments, of Wright International Blue
Chip Equities Fund of The Wright Managed Equity Trust as of December 31,
1994 and the related statement of operations for the year then ended,
the statement of changes in net assets for the years ended December 31,
1994 and 1993, the financial highlights for each of the years in the
five-year period ended December 31, 1994. These financial statements and
financial highlights are the responsibility of the Trust's management.
Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the
financial statements. Our procedures included confirmation of the securities
owned as of December 31, 1994, by correspondence with the custodian. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of Wright International
Blue Chip Equities Fund of The Wright Managed Equity Trust as of December 31,
1994, the results of its operations, the changes in its net assets, and its
financial highlights for the respective stated periods in conformity with
generally accepted accounting principles.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
February 2, 1995
<PAGE>
WRIGHT
INTERNATIONAL
BLUE CHIP
EQUITIES FUND
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.
