- -------------------------------------------------------------------------------
Description of art work on the front cover of the report
Three thin vertical,dark blue, lines on the right side of the page.
- -------------------------------------------------------------------------------
ANNUAL
REPORT
DECEMBER 31, 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
Portfolio of Investments..................... 4
Financial Statements......................... 7
<PAGE>
REPORT TO SHAREHOLDERS
===============================================================================
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC)
The Wright International Blue Chip Equities Fund (WIBC) had a total investment
return of 0.9% in the fourth quarter of 1995, trailing the 4.2% return for the
FT/S&P Actuaries World Ex U.S. index. For all of 1995, however, the WIBC Fund's
total return of 13.6% was well ahead of the 10.4% return in the FT/S&P Actuaries
World Ex U.S. index. On average for the year, the effect of a modest weakening
in the value of the dollar compared with the currencies of Europe had a slightly
positive effect on the return to U.S. investors from foreign securities. In the
fourth quarter, the dollar strengthened, reducing dollar returns.
The WIBC Fund's relatively low exposure in Japan (about 11% of Fund assets vs
about 40% in the FT/S&P Actuaries World Ex-U.S. index) limited its gain in the
fourth quarter, when the Japanese market was strong. For the full year, low
exposure to Japan helped, since the Japanese market was one of the world's
weakest in 1995. Above-market positions in the United Kingdom, Denmark, Sweden
and Hong Kong, all strong markets, boosted the Fund's full-year return.
Over the past five years, the WIBC Fund has averaged a 10.0% annual rate of
total investment return. While this compares favorably with the 9.3% average
annual rate of return for the FT/S&P Actuaries World Ex U.S. index, it lags the
16.5% rate of return on U.S. stocks for the same period (S&P 500). Since 1990,
foreign markets have generally lagged the U.S. market. Going forward, world
stock markets stand to benefit from the global trend to lower interest rates,
but slow (Japan) or slowing (Europe) economic growth may put some pressure on
corporate profits durng 1996. The stocks in the WIBC Fund appear to be well
positioned compared with foreign securities in general because of their superior
quality and because they averaged a P/E ratio of 17.5 at the end of 1995 as
compared with a P/E of 25 for the FT/S&P Actuaries World Ex U.S. index.
<PAGE>
It should be understood that performance data quoted herein 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
February 1996
<TABLE>
WRIGHT MANAGED EQUITY TRUST - EQUITY FUNDS
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND
Growth of $10,000 invested 10/01/89* through 12/31/95
Annual Total Return
----------------------------------------------
Lst 1 Yr Lst 5 Yrs Since Incept*
<S> <C> <C> <C>
Wright Int'l Blue Chip Equities Fund +13.6% +10.0% +7.2%
FT World Ex U.S. Index +10.4% +9.3% +3.7%
Wright Int'l Fiduciary Equity Index +5.6% +8.2% +4.6%
The cumulative total return of a U.S. $10,000 investment in the
WRIGHT INT'L BLUE CHIP EQUITIES FUND on 09/30/89
would have grown to $15,486 by December 31, 1995.
</TABLE>
<TABLE>
The following plotting points are used for comparison in the total investment
return mountain chart.
Date Wright Int'l Blue FT World Ex U.S Wright Int'l Fiduciary
Chip 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 $8,064 $8,946
12/31/91 $11,251 $9,138 $9,971
12/31/92 $10,807 $7,944 $8,383
12/31/93 $13,858 $10,507 $11,362
12/31/94 $13,631 $11,386 $12,576
12/31/95 $15,486 $12,575 $13,284
<FN>
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.
</FN>
</TABLE>
THE EQUITY TRUST -- WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC)
===============================================================================
<TABLE>
<CAPTION>
N.A.V. Distri- Distri- 12 Month 5 Year Cum.
Period Per bution bution Shares Invstmnt Invstmnt Invstmnt
Ending Share $ P/S in Shares Owned Value Return Return Return
(Annualized) (Annualized)
- --------------------------------------------------------------------------------------------------------------------------
<S> <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% 5.74% 6.28%
1/95 12.68 105.48 1,337.53 -9.06% 5.56% 5.55%
2/95 13.02 105.48 1,373.39 -4.44% 7.06% 5.99%
3/95 13.73 105.48 1,448.28 4.89% 8.45% 6.91%
4/95 14.11 105.48 1,488.37 4.70% 9.21% 7.33%
5/95 14.39 105.48 1,517.90 9.11% 7.95% 7.58%
6/95 14.54 105.48 1,533.73 11.25% 7.37% 7.67%
7/95 15.08 105.48 1,590.69 10.82% 7.39% 8.22%
8/95 14.51 105.48 1,530.56 4.72% 8.71% 7.40%
9/95 14.74 105.48 1,554.82 8.72% 11.39% 7.58%
10/95 14.66 105.48 1,546.38 6.03% 9.31% 7.37%
11/95 14.47 105.48 1,526.34 9.96% 9.46% 7.05%
12/95 14.77 0.10 0.006873 106.21 1,568.69 13.61% 10.04% 7.42%
</TABLE>
<PAGE>
<TABLE>
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1995
==============================================================================
Shares Value
- ------------------------------------------------------------------------------
EQUITY INTERESTS -- 97.0%
<S> <C> <C>
AUSTRALIA -- 3.6%
Broken Hill Proprietary Co. ADR..... 17,930 $ 1,013,045
Broken Hill Proprietary Co.......... 41,293 582,776
Coles Myer Ltd ADR................. 62,551 1,618,507
Email Ltd........................... 600,760 1,427,983
F.H. Faulding (U.K.)................ 448,071 1,996,963
Lend Lease Corp. Ltd................ 141,038 2,042,879
-----------
$ 8,682,153
-----------
BELGIUM -- 2.3%
Colruyt SA.......................... 6,700 $ 1,809,888
Delhaize Freres & Cie Le Lion SA.... 41,200 1,707,917
GB Inno - AFV....................... 654 28,000
GB Inno - BM SA..................... 44,850 1,968,950
-----------
$ 5,514,755
-----------
CANADA -- 2.7%
Bombardier Inc. Class B............. 186,000 $ 2,454,828
British Columbia Telecom............ 112,300 2,058,515
Corel Corporation*.................. 139,500 1,813,500
-----------
$ 6,326,843
-----------
DENMARK -- 4.8%
Berendsen Sophus A/S Class A........ 1,228 $ 137,438
Berendsen Sophus A/S Class B........ 16,630 1,868,707
Carlsburg A/S Pfd Class B........... 34,727 1,935,521
Icopal Group........................ 5,400 1,300,971
ISS International Service Sys. A/S.. 54,200 1,218,087
Novo-Nordisk AS..................... 19,000 2,596,187
Radiometer A/S...................... 32,250 2,307,713
-----------
$ 11,364,624
-----------
FRANCE -- 10.0%
Bongrain SA......................... 3,500 $ 1,968,716
Carrefour Supermarche............... 4,200 2,543,068
Castorama Dubois Inv................ 14,300 2,337,311
Comptoirs Modernes SA............... 6,504 2,107,578
Docks De France SA.................. 11,200 1,698,232
Groupe Danone....................... 10,571 1,740,738
L'Air Liquide SA.................... 12,321 2,036,446
LeGrand SA.......................... 12,100 1,864,289
L'Oreal SA.......................... 7,350 1,963,795
LVMH Moet-Hennessy SA ADR.......... 55,220 2,312,338
Pernod Ricard SA.................... 23,280 1,320,390
Synthelabo.......................... 28,900 1,807,005
-----------
$ 23,699,906
-----------
GERMANY -- 3.3%
Bayerische Motoren Werke AG......... 3,109 $ 1,590,752
Beiersdorf AG....................... 2,700 1,888,966
Douglas Holdings AG................. 64,000 2,254,368
Dyckerhoff AG....................... 3,950 846,920
Heidelberger Zement AG ............. 1,980 1,240,515
-----------
$ 7,821,521
-----------
HONG KONG -- 6.7%
China Light & Power Co. Ltd. ADR.... 311,276 $ 1,433,177
Hang Lung Dev. Co. Ltd. ADR......... 206,400 1,641,706
Hang Seng Bank Ltd. ADR............. 267,195 2,393,052
Hong Kong Aircraft Engineering Co... 741,000 1,916,586
Hong Kong & China Gas Co. ADR....... 939,132 1,512,097
Hong Kong Electric Holdings Ltd.ADR 530,520 1,739,310
Johnson Electric Holdings Ltd....... 897,500 1,601,746
Kowloon Motor Bus Co. (1933) Ltd.... 979,200 1,595,593
Swire Pacific Ltd. ADR.............. 261,400 2,028,464
-----------
$ 15,861,731
-----------
IRELAND -- 1.6%
Fyffes PLC.......................... 922,000 $ 1,591,722
Greencore Group PLC................. 255,000 2,286,734
-----------
$ 3,878,456
-----------
ITALY -- 0.6%
Sirti SPA........................... 241,000 $ 1,354,999
-----------
<PAGE>
JAPAN -- 10.5%
Chudenko Corp....................... 48,300 $ 1,653,598
Daiichi Pharmaceutical Co., Ltd..... 98,000 1,393,230
Ito-Yokado Co., Ltd. ADR............ 8,750 2,153,594
Kurita Water Industries Ltd......... 81,000 2,154,255
Kyodo Printing Co. Ltd.............. 138,000 1,721,663
National House Industrial Co., Ltd.. 90,000 1,645,068
Nintendo Corporation Ltd............ 26,700 2,027,031
Ono Pharmaceutical Co. Ltd.......... 29,000 1,113,443
Santen Pharmaceutical Co., Ltd...... 66,000 1,500,000
Seven Eleven Japan Co., Ltd......... 19,800 1,394,043
Taisho Pharmaceutical Co., Ltd...... 75,000 1,479,691
Takasago Thermal Engineering Co..... 93,000 1,663,927
Yamanouchi Pharmaceutical Co., Ltd.. 92,000 1,975,242
York-Benimaru Co., Ltd.............. 42,000 1,604,449
Yurtec Corp......................... 82,950 1,452,026
-----------
$ 24,931,260
-----------
MALAYSIA -- 4.7%
Amalgamated Steel Mills Berhad......2,298,000 $ 1,710,131
Genting Berhad...................... 200,000 1,669,489
Guinness Anchor Berhad.............. 988,000 1,851,746
Hong Leong Indus Berhad............. 363,000 1,929,559
Perlis Plantations Berhad........... 532,000 1,665,315
Sime Darby Berhad................... 829,200 2,203,843
-----------
$ 11,030,083
-----------
MEXICO -- 1.8%
Cifra S.A. ADR..................... 895,000 $ 940,735
Kimberly Clark De Mexico ADR........ 64,900 1,962,634
Telefonos de Mexico ADR............ 40,400 1,287,750
-----------
$ 4,191,119
-----------
NETHERLANDS -- 9.8%
CSM N.V............................ 47,095 $ 2,050,028
Elsevier Dutch Certificates......... 159,900 2,127,890
Getronics N.V....................... 48,014 2,239,319
Hagemeyer N.V....................... 37,740 1,966,676
Heineken N.V........................ 13,375 2,367,926
Koninklijke Ahold N.V............... 63,176 2,573,240
Nutricia............................ 29,000 2,340,775
Polygram............................ 28,700 1,520,577
Unilever N.V........................ 12,900 1,808,936
Verenigde Neder. Uitgeversbedrijven. 16,600 2,274,100
Wolters Kluwer N.V.................. 20,400 1,925,701
-----------
$ 23,195,168
-----------
NEW ZEALAND -- 0.8%
Wilson & Horton..................... 320,000 $ 1,913,302
-----------
SINGAPORE -- 2.4%
Asia Pacific Breweries Ltd.......... 272,000 $ 1,615,499
Cycle & Carriage Ltd. Ord........... 199,000 1,983,950
Singapore Press Holdings Ltd........ 115,200 2,036,343
-----------
$ 5,635,792
-----------
SOUTH AFRICA -- 0.9%
South African Breweries Ltd......... 58,500 $ 2,142,299
-----------
SPAIN -- 2.6%
Banco Popular Espanol............... 11,600 $ 2,133,980
Empresa Nac de Electicidad SA....... 40,600 2,293,767
Repsol S.A.......................... 55,740 1,822,093
-----------
$ 6,249,840
-----------
SWEDEN -- 3.6%
Astra AB Class B.................... 58,500 $ 2,317,530
Gambro AB Series B.................. 121,700 2,309,802
Gullspangs Kraft - "B" Free......... 155,000 2,264,734
Hennes & Mauritz AB Class B........ 31,600 1,761,175
-----------
$ 8,653,241
-----------
SWITZERLAND -- 4.7%
Nestle SA ADR....................... 34,600 $ 1,918,459
Roche Holding AG - Genussch......... 270 2,135,798
Sandoz AG........................... 2,800 2,563,218
SMH-Sch. Ges. Fuer AG............... 14,750 1,930,779
SMH-Sch. Ges. Fuer - New AG......... 470 281,132
Societe Generale de Surv. Hold. SA.. 1,175 2,332,582
-----------
$ 11,161,968
-----------
<PAGE>
UNITED KINGDOM -- 19.6%
Allied Colloids Group PLC........... 920,000 $ 1,900,251
BTR*................................ 4,178 4,315
BTR Ltd. PLC........................ 359,908 1,838,903
BTR Ltd.*........................... 3,287 1,047
Cable & Wireless PLC ADR........... 99,700 2,106,163
Christian Salvesen PLC.............. 347,200 1,428,884
Farnell Electronics PLC............. 182,700 2,038,622
Grand Metropolitan PLC ADR......... 55,900 1,607,125
Halma PLC........................... 709,333 1,927,790
Kwik Save Group PLC................. 173,000 1,343,345
LaPorte PLC......................... 167,070 1,738,380
Marks & Spencer PLC................. 60,700 424,202
Marks & Spencer PLC ADR ............ 30,700 1,286,947
Morrison (Wm.) Supermarket.......... 850,000 1,848,070
Nurdin & Peacock PLC................ 624,000 1,477,835
Pearson PLC......................... 207,076 2,005,107
Polypipe PLC........................ 720,000 1,967,962
Powerscreen Int'l................... 433,100 2,602,979
Reckitt & Colman PLC................ 157,176 1,739,171
Sainsbury (J.) PLC.................. 267,292 1,629,285
Scapa Group PLC..................... 561,873 1,937,147
Securicor Group -A-................. 100,000 1,374,405
Seibe PLC........................... 220,724 2,719,994
Smith & Nephew PLC.................. 686,730 1,994,339
Smiths Industries PLC............... 210,100 2,075,174
Tesco PLC........................... 417,060 1,923,652
Weir Group PLC...................... 407,700 1,332,798
Wolseley PLC........................ 317,600 2,224,480
-----------
$ 46,498,372
-----------
TOTAL EQUITY INTERESTS -- 97.0%
(identified cost, $189,163,858) $ 230,107,432
RESERVE FUND -- 2.7%
Face Amount
------------
American Express Corp., 5.65%, 1/02/96
(at amortized cost)...............$6,470,000 6,470,000
-----------
TOTAL INVESTMENTS -- 99.7%
(identified cost, $195,633,858) $236,577,432
OTHER ASSETS,
LESS LIABILITIES -- 0.3% 598,514
-----------
NET ASSETS -- 100% $237,175,946
============
<FN>
* Non-income-producing security.
ADR: American Depository Receipts
</FN>
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND
==============================================================================
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1995
- ------------------------------------------------------------------------------
ASSETS:
<S> <C>
Investments --
Identified cost........................ $195,633,858
Unrealized appreciation................ 40,943,574
------------
Total value (Note 1A)................ $236,577,432
Cash..................................... 2,628
Dividends and interest receivable........ 436,970
Receivable for refundable foreign taxes
withheld............................... 373,785
Receivable for fund shares sold.......... 126,823
------------
Total Assets........................... $237,517,638
------------
LIABILITIES:
Payable for fund shares reacquired....... $ 302,551
Trustees fees payable.................... 370
Custodian fee payable (Note 3)........... 25,706
Accrued expenses and other liabilities... 13,065
------------
Total Liabilities......................$ 341,692
------------
NET ASSETS.................................. $237,175,946
=============
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........................ $198,077,233
Accumulated undistributed net realized loss
on investments and foreign currency
(computed on the basis of identified cost) (3,217,931)
Unrealized appreciation of investments and trans-
lation of assets and liabilities in foreign currency
(computed on the basis of identified cost) 40,958,703
Undistributed net investment income......... 1,357,941
------------
Net assets applicable to outstanding shares $237,175,946
=============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING.............................. 16,057,236
=============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST................... $14.77
=============
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1995
- -------------------------------------------------------------------------------
INVESTMENT INCOME:
<S> <C>
Income --
Dividends.............................. $ 5,476,637
Interest............................... 215,791
Less: Foreign taxes................... (707,978)
------------
Total Income......................... $ 4,984,450
------------
Expenses --
Investment Adviser fee (Note 2)........ $ 1,682,897
Administrator fee (Note 2)............. 270,853
Compensation of Trustees not affiliated with
the Investment Adviser or Administrator 2,088
Custodian fee (Note 2)................. 306,333
Transfer and dividend disbursing agent fees 21,522
Shareholder communication expense...... 23,696
Distribution expenses (Note 3)......... 436,177
Audit services......................... 37,000
Legal services......................... 1,445
Registration costs..................... 17,063
Printing............................... 4,395
Interest expense....................... 2,878
Miscellaneous.......................... 10,316
------------
Total Expenses....................... $ 2,816,663
------------
Net Investment Income.............. $ 2,167,787
------------
REALIZED AND UNREALIZED GAIN ON
INVESTMENTS:
Net realized loss on investment and foreign
currency transactions (identified
cost basis) .......................... $ (650,735)
Change in unrealized appreciation
of investments and translation of assets
and liabilities in foreign currencies.. 25,147,505
------------
Net realized and unrealized gain on
investments and foreign currency... $ 24,496,770
------------
Net increase in net assets
from operations.................... $ 26,664,557
=============
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND
=======================================================================================================================
Year Ended
December 31,
----------------------------------
STATEMENTS OF CHANGES IN NET ASSETS 1995 1994
- -----------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
<S> <C> <C>
From operations --
Net investment income........................................................ $ 2,167,787 $ 1,821,338
Net realized gain (loss) on investment and foreign currency transactions..... (650,735) 238,478
Change in unrealized appreciation of investments and translation
of assets and liabilities in foreign currencies............................ 25,147,505 (7,495,702)
------------ ------------
Increase (decrease) in net assets from operations.................... $ 26,664,557 $ (5,435,886)
------------ ------------
Undistributed net investment income included in
price of shares sold and redeemed (Note 1D).................................. $ 182,554 $ 655,170
------------ ------------
Distributions to shareholders from net investment income....................... $ (1,602,294) $ (1,467,856)
------------ ------------
Net increase from fund share transactions
(exclusive of amounts allocated to net investment income) (Note 4)........... $ 11,699,493 $ 106,409,645
------------ ------------
Net increase in net assets............................................ $ 36,944,310 $ 100,161,073
NET ASSETS:
At beginning of year........................................................... 200,231,636 100,070,563
------------ ------------
At end of year................................................................. $ 237,175,946 $ 200,231,636
============== ==============
UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED IN NET ASSETS.......................... $ 1,357,941 $ 1,579,133
============== ==============
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND
============================================================================================================================
Year Ended December 31,
---------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1995 1994 1993 1992 1991
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......... $ 13.090 $ 13.410 $ 10.520 $ 11.040 $ 9.520
--------- --------- --------- --------- ---------
Income (loss) from Investment Operations:
Net investment income.................. $ 0.142 $ 0.127 $ 0.107 $ 0.094 $ 0.115
Net realized and unrealized gain (loss)
on investments..................... 1.638 (0.347) 2.853 (0.524) 1.515
--------- --------- --------- --------- ---------
Total income (loss)
from investment operations......... $ 1.780 $ (0.220) $ 2.960 $ (0.430) $ 1.630
--------- --------- --------- --------- ---------
Less Distributions:
From net investment income............. $ (0.100) $ (0.100) $ (0.070) $ (0.090) $ (0.110)
--------- --------- --------- --------- ---------
Net asset value, end of year................ $ 14.770 $ 13.090 $ 13.410 $ 10.520 $ 11.040
========== ========== ========== ========== ==========
Total Return(1)............................. 13.61% (1.64%) 28.22% (3.94%) 17.21%
Ratios/Supplemental Data
Net assets, end of year (000 omitted).. $237,176 $200,232 $100,071 $ 74,409 $ 51,802
Ratio of expenses to average daily net
assets............................. 1.29% 1.31% 1.46% 1.51% 1.67%
Ratio of net investment income to average
daily net assets................... 0.99% 1.00% 0.67% 0.81% 1.12%
Portfolio Turnover Rate................ 12% 12% 30% 15% 23%
<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 record date.
</FN>
</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, 1995, WIBC, for federal income tax purposes, had a capital
loss carryover of $3,217,931, 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 2003
-----------------------------------------------------
$924,334 $1,404,904 $250,866 $637,827
-----------------------------------------------------
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 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 gain. During the year ended
December 31, 1995, the following amounts were reclassified due to the
differences between book and tax accounting created primarily by the
utilization of redemption distributions for tax purposes and character
reclassifications between net investment income and net realized capital
gains.
Accumulated Undistributed Undistributed
Paid-in Net Realized Loss on Investment Net Investment
Capital and Foreign Currency Transactions Income
----------------------------------------------------------------
$951,294 $17,945 $(969,239)
----------------------------------------------------------------
These changes had no effect on the net assets per share.
<PAGE>
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.
G. 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.
(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, 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 year ended December 31,
1995, the effective annual rate was 0.12% for WIBC. The custodian fee was paid
to Investors Bank & Trust Company (IBT) for its services as custodian of the
Trust. Prior to November 10, 1995, IBT was an affiliate of Eaton Vance. 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. All significant credits are reported as a reduction of expenses in the
Statement of Operations. For the year ended December 31, 1995, there were no
such reported amounts. 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 Wright or Eaton Vance,
Trustees and officers receive remuneration for their services to the Trust out
of the fees paid to Wright and Eaton Vance.
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, 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:
<TABLE>
Year Ended December 31,
------------------------------------------------------------
1995 1994
---------------------------- ---------------------------
Shares Amount Shares Amount
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Sold ................................................. 4,605,546 $ 64,343,250 12,245,362 $165,447,724
Issued to shareholders in payment of distributions
declared.............................................. 78,962 1,136,990 88,270 1,142,033
Reacquired............................................. (3,919,612) (53,780,747) (4,503,339) (60,180,112)
----------- ------------ ------------ -------------
Net increase..................................... 764,896 $ 11,699,493 7,830,293 $106,409,645
============ ============= ============= =============
</TABLE>
<PAGE>
(5) INVESTMENT TRANSACTIONS
Purchases and sales of investments, other than short-term obligations, for
the year ended December 31, 1995, were as follows:
- ------------------------------------------------------
Purchases............................ $32,858,249
=============
Sales................................ $25,390,082
=============
- ------------------------------------------------------
(6) FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES
The cost and unrealized appreciation (depreciation) of the investment
securities owned at December 31, 1995, as computed on a federal income tax
basis, are as follows:
- ---------------------------------------------------------
Aggregate cost....................... $195,633,858
=============
Gross unrealized appreciation........ $ 48,243,565
Gross unrealized depreciation........ (7,299,991)
------------
Net unrealized appreciation.......... $ 40,943,574
=============
- --------------------------------------------------------
(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, 1995.
(8) LINE OF CREDIT
WIBC 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. WIBC did not have any significant borrowings under the line of
credit during the year ended December 31, 1995.
(9) RISKS ASSOCIATED WITH FOREIGN INVESTMENTS
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 WIBC, 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 WIBC's assets. WIBC may be unable to sell securities where the
registration process is incomplete and may experience delays in receipt of
dividends.
<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, 1995 and the related
statement of operations for the year then ended, the statements of changes in
net assets for the years ended December 31, 1995 and 1994, and the financial
highlights for each of the years in the five-year period ended December 31,
1995. 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, 1995, 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,
1995, 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, 1996
<PAGE>
- -----------------------------------------------------------------------------
Description of art work on the back cover of the report
Three thin vertical,dark blue lines on the right side of the 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
89 South Street
Boston, Massachusetts 02111
TRANSFER AND DIVIDEND DISBURSING AGENT
First Data Investor Services Group
Wright Managed Investment Funds
P.O. Box 1559
Boston, Massachusetts 02104
INDEPENDENT AUDITORS
Deloitte & Touche LLP
125 Summer Street
Boston, Massachusetts 02110
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.
