As filed with the Securities and Exchange Commission on April 29, 1998
1933 Act File No. 2-78047
1940 Act File No. 811-3489
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-1A
REGISTRATION STATEMENT
UNDER
SECURITIES ACT OF 1933 [x]
POST-EFFECTIVE AMENDMENT NO. 23 [x]
REGISTRATION STATEMENT
UNDER
THE INVESTMENT COMPANY ACT OF 1940 [x]
AMENDMENT NO. 24 [x]
The Wright Managed Equity Trust
--------------------------------------------------
(Exact Name of Registrant as Specified in Charter)
24 Federal Street, Boston, Massachusetts 02110
--------------------------------------------------
(Address of Principal Executive Offices)
617--482-8260
-------------------------------
(Registrant's Telephone Number)
Alan R. Dynner
24 Federal Street, Boston, Massachusetts 02110
------------------------------------------------------
(Name and Address of Agent for Service)
It is proposed that this filing will become effective (check appropriate box):
[ ] Immediately upon filing pursuant to paragraph (b)
[ ]On (date) pursuant to paragraph (a)(1)
[x] On May 1, 1998 pursuant to paragraph (b)
[ ]75 days after filing pursuant to paragraph (a)(2)
[ ] 60 days after filing pursuant to paragraph (a)(1)
[ ]On (date) pursuant to paragraph (a)(2)
If appropriate, check the following box:
[ ] This post-effective amendment designates a new effective date for a
previously filed post-effective amendment.
Title of Securities Being Registered: Shares of Beneficial Interest
This Amendment to the registration statement on Form N-1A has been executed by
The Wright Blue Chip Master Portfolio Trust.
<PAGE>
This Amendment to the registration statement on Form N-1A consists of the
following documents and papers:
Cross Reference Sheet required by Rule 481(a) under Securities Act of 1933.
Part A -- The Combined Prospectus of:
Wright International Blue Chip Equities Fund
Wright Major Blue Chip Equities Fund
Wright Selected Blue Chip Equities Fund
Wright Junior Blue Chip Equities Fund
Part B -- The Combined Statement of Additional Information of:
Wright International Blue Chip Equities Fund
Wright Major Blue Chip Equities Fund
Wright Selected Blue Chip Equities Fund
Wright Junior Blue Chip Equities Fund
Part C -- Other Information
Signatures
Exhibit Index Required by Rule 483(a) under the Securities Act of 1933
Exhibits
<PAGE>
The Wright Managed Equity Trust
Wright International Blue Chip Equities Fund
Wright Major Blue Chip Equities Fund
Wright Selected Blue Chip Equities Fund
Wright Junior Blue Chip Equities Fund
<TABLE>
<CAPTION>
Cross Reference Sheet
Item No. Statement of
FORM N-1A--Part A Prospectus Caption Additional Information Caption
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
1........................ Front Cover Page
2........................ Shareholder and Fund Expenses
3 (a).................... Financial Highlights
3 (b).................... Not Applicable
3 (c).................... Performance Information
4........................ The Funds and their Investment Objec- tives and
Policies, Other Investment
......................... Policies, Other Information
5........................ The Investment Adviser, The Administra-
tor, Distribution Expenses -- Standard
Shares, Service Plans, Back Cover
5 (a).................... Not Applicable
6........................ Other Information, Distributions by the Funds, Taxes
7........................ Share Purchase Alternatives, How to Buy Shares, How
the Funds Value their Shares, Account Statements and
Con- firmations, How to Exchange Shares,
Tax-Sheltered Retirement Plans
8........................ How to Redeem or Sell Shares
9........................ Not Applicable
Form N-1A -- Part B
- ----------------------------------------------------------------------------------------------------------------------------------
10....................... Front Cover Page and Back Cover
11....................... Table of Contents
12....................... Additional Information about theTrusts and
......................... the Portfolio Trust
13....................... Additional Investment Information,
Investment Restrictions
14....................... Officers and Trustees
15....................... Control Persons and Principal Holders of Shares
16....................... Investment Advisory and Administrative Services,
Custodian, Independent
Certified Public Accountants, Back Cover
17....................... Brokerage Allocation
18.......................
19....................... Share Purchase Alternatives, How to Pricing of Shares, Service Plans
Buy or Sell Shares, How the Funds
Value their Shares
20....................... Taxes
21....................... Principal Underwriter
22....................... Calculation of Performance and Yield
Information
23....................... Financial Statements
</TABLE>
<PAGE>
PART A
Information Required in a Prospectus
PROSPECTUS
STANDARD SHARES
INSTITUTIONAL SHARES
MONEY MARKET SHARES May 1, 1998
==============================================================================
The Wright Managed Blue Chip Investment Funds
==============================================================================
The Wright Managed Blue Chip Investment Funds (the "Funds") consist of nine
series or Funds from The Wright Managed Equity Trust and The Wright Managed
Income Trust (the "Trusts"). Each Fund has distinct investment objectives and
policies which are discussed starting on page 1. The nine Funds are:
<TABLE>
<S> <C> <C>
Wright Selected Blue Chip Equities Fund Wright International Blue Chip Equities Fund Wright Total Return Bond Fund
Wright Junior Blue Chip Equities Fund Wright U.S. Treasury Fund Wright Current Income Fund
Wright Major Blue Chip Equities Fund Wright U.S. Treasury Near Term Fund Wright U.S. Treasury Money Market Fund
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Each of Wright Selected Blue Chip Equities Fund, Wright Junior Blue Chip
Equities Fund, Wright International Blue Chip Equities Fund, Wright U.S.
Treasury Fund, Wright U.S. Treasury Near Term Fund and Wright Current Income
Fund (the "Feeder Funds") invests its assets in a corresponding diversified
series ("Portfolio") of The Wright Blue Chip Master Portfolio Trust, an open-end
investment company (the "Portfolio Trust"), having the same investment objective
as the Fund, rather than directly investing in and managing its own portfolio of
securities. This combined Prospectus is designed to provide you with information
you should know before investing. Please retain this document for future
reference. A combined Statement of Additional Information, dated May 1, 1998,
for the Funds has been filed with the Securities and Exchange Commission and is
incorporated herein by reference. This Statement is available without charge
from Wright Investors' Service Distributors, Inc., 1000 Lafayette Boulevard,
Bridgeport, Connecticut 06604 (Telephone: 800-888-9471) or from the Adviser's
web site (http://www.wrightinvestors.com). In addition, the Securities and
Exchange Commission maintains a Web site (http://www.sec.gov) that contains the
Statement of Additional Information, material incorporated by reference and
other information regarding the Funds.
THE PROSPECTUSES OF THE FUNDS ARE COMBINED IN THIS PROSPECTUS. EACH FUND
OFFERS ONLY ITS OWN SHARES, YET IT IS POSSIBLE THAT A FUND MIGHT BECOME LIABLE
FOR A MISSTATEMENT IN THE PROSPECTUS OF ANOTHER FUND. THE TRUSTEES OF EACH TRUST
HAVE CONSIDERED THIS IN APPROVING THE USE OF A COMBINED PROSPECTUS.
SHARES OF THE FUNDS ARE NOT DEPOSITS OR OBLIGATIONS OF, OR ENDORSED OR
GUARANTEED BY, ANY BANK OR OTHER INSURED DEPOSITORY INSTITUTION, AND ARE NOT
FEDERALLY INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL
RESERVE BOARD OR ANY OTHER GOVERNMENT AGENCY. SHARES OF THE FUNDS INVOLVE
INVESTMENT RISKS, INCLUDING FLUCTUATIONS IN VALUE AND THE POSSIBLE LOSS OF SOME
OR ALL OF THE PRINCIPAL INVESTMENT. SHARES OF WRIGHT U.S. TREASURY MONEY MARKET
FUND ARE NEITHER INSURED NOR GUARANTEED BY THE U.S. GOVERNMENT AND THERE IS NO
ASSURANCE THAT IT WILL BE ABLE TO MAINTAIN A STABLE NET ASSET VALUE OF $1.00 PER
SHARE.
Table of Contents
PAGE
An Introduction to the Funds...................... ii
Shareholder and Fund Expenses..................... iv
Financial Highlights.............................. vi
The Funds and their Investment Objectives and
Policies........................................ 1
The Wright Managed Equity Trust
Wright Selected Blue Chip Equities Fund (WBC)... 1
Wright Major Blue Chip Equities Fund (WMBC)..... 2
Wright Junior Blue Chip Equities Fund (WJBC).... 2
Wright International Blue Chip Equities
Fund ( WIBC)................................... 3
The Wright Managed Income Trust
Wright U.S. Treasury Fund (WUSTB)............... 3
Wright U.S. Treasury Near Term Fund (WNTB)...... 3
Wright Total Return Bond Fund (WTRB)............ 4
Wright Current Income Fund (WCIF)............... 4
Wright U.S. Treasury Money Market Fund (WTMM)... 4
Other Investment Policies......................... 5
The Investment Adviser............................ 7
The Administrator................................. 9
Share Purchase Alternatives....................... 10
Distribution Expenses -- Standard Shares.......... 10
Service Plans..................................... 11
How the Funds Value their Shares.................. 11
How to Buy Shares................................. 12
Account Statements and Confirmations.............. 14
Distributions by the Funds........................ 14
Taxes............................................. 15
How to Exchange Shares............................ 16
How to Redeem or Sell Shares...................... 17
Performance Information........................... 18
Other Information................................. 19
Tax-Sheltered Retirement Plans.................... 20
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
<PAGE>
An Introduction to the Funds
The information summarized below is qualified in its entirety by the more
detailed information set forth below in this Prospectus.
The Trusts....................... The Wright Managed Equity Trust and The
Wright Managed Income Trust are open-end, management investment companies, known
as a mutual fund, registered as investment companies under the Investment
Company Act of 1940, as amended (the "1940 Act"). The Equity Trust consists of
four series and the Income Trust consists of five series. Each series or Fund
represents a separate and distinct series of the Trusts' shares of beneficial
interest. Each fund offered herein is a diversified fund.
Investment Objective............. The objective of each equity Fund is to
provide long-term growth of capital and at the same time earn reasonable current
income. Securities selected for each equity Fund are selected from investment
lists of blue chip securities prepared by Wright Investors' Service, Inc. The
objective of each income Fund is to provide a high level of return consistent
with the quality standards and average maturity for such Fund.
The Funds........................ The following Funds are offered through
this Prospectus:
Wright Selected Blue Chip Equities Fund (WSBC)
Wright Major Blue Chip Equities Fund (WMBC)
Wright Junior Blue Chip Equities Fund (WJBC)
Wright International Blue Chip Equities Fund (WIBC)
Wright U.S. Treasury Fund (WUSTB)
Wright U.S. Treasury Near Term Fund (WNTB)
Wright Total Return Bond Fjund (WTRB)
Wright Current Income Fund (WCIF)
Wright U.S. Treasury Money Market Fund (WTMM)
Standard Shares and.............. Available for purchase by all investors.
Money Market Shares
Institutional Shares............. Available for purchase by certain
institutional investors. Institutional shares are not offered by WTMM Fund or
the WTRB Fund.
The Investment Adviser and Administrator........... Each Fund or its
corresponding portfolio has engaged Wright Investors' Service, Inc., 1000
Lafayette Boulevard, Bridgeport, CT ("Wright" or the "Investment Adviser") as
investment adviser to carry out the investment and reinvestment of the Fund's
assets. Each Fund has also retained Eaton Vance Management ("Eaton Vance" or the
"Administrator"), 24 Federal Street, Boston, MA 02110 as administrator to manage
the Funds' business affairs.
The Distributor.................. Wright Investors' Service Distributors,
Inc. ("WISDI" or the "Principal Underwriter") is the Distributor of the Funds'
shares and receives a distribution fee equal on an annual basis to 0.25% of each
Fund's average daily net assets of the Standard Shares.
<PAGE>
How to Purchase Standard Shares of the Fund .................. There is no
sales charge on the purchase of Standard shares. Standard shares of any Fund may
be purchased at the net asset value per share next determined after receipt and
acceptance of the purchase order. The minimum initial investment is $1,000 which
may be waived for investments in 401(k) and other tax-sheltered retirement plans
including IRAs, and which may be reduced to $500 for shares purchased by or for
an investor making an investment through an investment adviser, financial
planner, broker, or other intermediary that charges a fee for its services and
has entered into an agreement with the Fund or its Principal Underwriter. The
minimum initial investment is also waived for Automatic Investment Program
accounts that may be established with an investment of $50 or more with a
minimum of $50 applicable to each subsequent investment. Shares may also be
purchased through an exchange of securities. See "How to Buy Shares."
How to Purchase Institutional Shares of the Fund ..................
Institutional shares of any Fund may be purchased at the net asset value per
share next determined after receipt and acceptance of the purchase order. There
is no sales charge on the purchase of Institutional shares. The minimum initial
investment is $3,000,000, which may be waived for certain qualified retirement
plans and bank trust departments. See "How to Buy Shares."
Distribution Options............. Unless the shareholder has elected to
receive dividends and distributions in cash, dividends and distributions will be
reinvested in additional shares of the Fund making such dividend or distribution
at the net asset value per share as of the reinvestment date. Capital gains
distributions, if any, are usually made annually in December. WSBC, WJBC and
WMBC intend to pay dividends from net investment income quarterly. WIBC intends
to pay dividends annually. WUSTB, WNTB, WTRB, WCIF and WTMM will declare any net
investment income as dividends daily and will pay them monthly.
Redemptions...................... Shares may be redeemed directly from a
Fund at the net asset value per share next determined after receipt of the
redemption request in good order. A telephone and internet redemption privilege
is available. See "How to Redeem or Sell Shares."
Exchange Privilege............... Shares of the Funds may be exchanged for
shares of certain other funds managed by the Investment Adviser at the net asset
value next determined after receipt of the exchange request. There are limits on
the number and frequency of exchanges. A telephone and internet exchange
privilege is available as described under "How to Exchange Shares."
Net Asset Value.................. The net asset value per share of each
Fund is calculated on each day the New York Stock Exchange is open for trading.
Call (800) 888-9471 for the previous day's net asset value.
Taxation......................... Each Fund has qualified and elected or
intends to qualify and elect to be treated as a regulated investment company for
federal income tax purposes under Subchapter M of the Internal Revenue Code.
Shareholder Communications....... Each shareholder will receive annual and
semi-annual reports containing financial statements, and a statement confirming
each share transaction. Financial statements included in annual reports are
audited by the Trust's independent certified public accountants. Where possible,
shareholder confirmations and account statements will consolidate all Wright
investment fund holdings of the shareholder.
Special Risk Considerations...... International investments pose additional
risks including currency exchange rate fluctuation, currency revaluation and
political risks. See page 7 for additional foreign investment considerations.
<PAGE>
Shareholder and Fund Expenses
The following table of fees and expenses is provided to assist investors in
understanding the various costs and expenses which may be borne directly or
indirectly by an investment in each Fund. The percentages shown below
representing total operating expenses for Standard Shares are based on actual
amounts incurred for the fiscal year ended December 31, 1997, except that Rule
12b-1 Distribution Expenses have been restated to reflect the increase in the
fee to 0.25% on May 1, 1997 and Service Plan fees are estimated for the current
fiscal year. Total Operating Expenses for Institutional Shares are based on
estimated expenses that would have been incurred if Institutional Shares had
been outstanding for the entire fiscal year ended December 31, 1997.
Institutional Shares were first offered on May 1, 1997.
<TABLE>
<CAPTION>
Wright Wright Wright Wright
Selected Blue Chip Junior Blue Chip Major Blue Chip International Blue Chip
Equities Fund (WBC)* Equities Fund (WJBC) *Equities Fund (WMBC) Equities Fund (WIBC)*
- ----------------------------------------------------------------------------------------------------------------------------------
Standard Institutional Standard Institutional Standard Institutional Standard Institutional
Shares Shares Shares Shares Shares Shares Shares Shares
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shareholder Transaction Expenses none none none none none none none none
Annualized Fund Operating Expenses
(as a percentage of average net assets)
Investment Adviser Fee 0.63% 0.63% 0.19% 0.19% 0.27% 0.27% 0.77% 0.77%
Rule 12b-1 Distribution Expense
(after expense limitation) (1) 0.25% 0.00% 0.16% 0.00% 0.08% 0.00% 0.25% 0.00%
Other Expenses (including administration
and Service Plan fees) (2) 0.20% 0.25% 0.83% 0.61% 0.73% 0.45% 0.29% 0.39%
-----------------------------------------------------------------------------------------
Total Operating Expenses
(after limitations)(1) 1.08% 0.88% 1.18% 0.80% 1.08% 0.72% 1.31% 1.16%
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The Investment Adviser and the Principal Underwriter have temporarily and
voluntarily agreed to limit the total operating expenses of WJBC and WMBC
Standard Shares to 1.15% and 1.05%, respectively. Absent this agreement,
Investment Adviser Fee of WJBC and WMBC Standard Shares would be 0.55% and
0.46%, respectively, Rule 12b-1 Distribution Expense of WJBC and WMBC
Standard Shares would be 0.25% and 0.25%, respectively, and Total Operating
Expenses of WJBC and WMBC Standard Shares would be 1.62% and 1.43%,
respectively. If credits resulting from cash balances maintained with
Investors Bank & Trust Company were reflected in the table above, the Total
Operating Expenses for WJBC and WMBC Standard Shares would be 1.14% and
1.05%, respectively.
(2) Administration fees for WBC, WJBC, WMBC and WIBC were 0.12%, 0.20%, 0.20%,
and 0.11%, respectively. Service Plan fees for the current fiscal year for
Institutional Shares of WBC, WJBC, WMBC and WIBC are estimated to be 0.04%,
0.01%, 0.01% and 0.02%, respectively.
* For the Feeder Funds, the table and the example summarize the aggregate
expenses of the Feeder Funds and the Portfolios.
<TABLE>
<CAPTION>
Wright Wright Wright Wright U.S. Treasury
U.S. Treasury U.S. Treasury Total Return Current Money
Fund Near Term Fund Bond Fund Income Fund Market Fund
(WUSTB)* (WNTB)* (WTRB) (WCIF)* (WTMM)
- ----------------------------------------------------------------------------------------------------------------------------------
Standard Institutional Standard Institutional Standard Standard Institutional Money Market
Shares Shares Shares Shares Shares Shares Shares Shares
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shareholder Transaction Expenses none none none none none none none none
Annualized Fund Operating Expenses
(as a percentage of average net assets)
Investment Adviser Fee
(after fee limitation) 0.40% 0.40% 0.40% 0.40% 0.40% 0.42% 0.42% 0.21%
Rule 12b-1 Distribution Expense
(after expense limitation) (1) 0.23% 0.00% 0.25% 0.00% 0.25% 0.19% 0.00% none
Other Expenses (including administration
and Service Plan fees) (2) 0.38% 0.37% 0.22% 0.22% 0.25% 0.28% 0.06% 0.24%
-------------------------------------------------------------------------------------------
Total Operating Expenses
(after limitations) (1) 1.01% 0.77% 0.87% 0.62% 0.90% 0.89% 0.48% 0.45%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The Investment Adviser and the Principal Underwriter have temporarily and
voluntarily agreed to limit the total operating expenses of WUSTB and WTMM
to 0.90% and 0.45%, respectively. Absent this agreement, the Investment
Adviser Fee, the Rule 12b-1 Distribution Expense and Total Operating
Expenses would be 0.40%, 0.25% and 1.02% for Standard Shares of WUSTB and
Investment Adviser Fee and Total Operating Expenses for WTMM would be 0.35%
and 0.59%, respectively.
(2) Administration fees for WUSTB, WNTB, WTRB, WCIF and WTMM were 0.10%, 0.10%,
0.10%, 0.10% and 0.07%, respectively. Service Plan fees for the current
fiscal year for Institutional Shares of WUSTB, WNTB, and WCIF are estimated
to be 0.02%, 0.02% and 0.03%, respectively.
* For the Feeder Funds, the table and the example summarize the aggregate
expenses of the Feeder Funds and the Portfolios.
<PAGE>
Example of Fund Expenses
The following is an illustration of the total transaction and operating
expenses that an investor in each Fund would bear over different periods of
time, assuming an investment of $1,000, a 5% annual return on the investment and
redemption at the end of each period:
<TABLE>
<CAPTION>
Wright Wright Wright Wright
Selected Blue Chip Junior Blue Chip Major Blue Chip International Blue Chip
Equities Fund (WBC) Equities Fund (WJBC) Equities Fund (WMBC) Equities Fund (WIBC)
- ----------------------------------------------------------------------------------------------------------------------------------
Standard Institutional Standard Institutional Standard Institutional Standard Institutional
Shares Shares Shares Shares Shares Shares Shares Shares
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 Year $ 11 $ 9 $ 12 $ 8 $ 11 $ 7 $ 13 $ 12
3 Years 34 28 37 26 34 23 42 37
5 Years 60 49 65 44 60 40 72 64
10 Years 132 108 143 99 132 89 158 141
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Wright Wright Wright Wright U.S. Treasury
U.S. Treasury U.S. Treasury Total Return Current Money
Fund Near Term Fund Bond Fund Income Fund Market Fund
(WUSTB) (WNTB) (WTRB) (WCIF) (WTMM)
- -------------------------------------------------------------------------------------------------------------------------------
Standard Institutional Standard Institutional Standard Standard Institutional
Shares Shares Shares Shares Shares Shares Shares
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 Year $ 10 $ 8 $ 9 $ 6 $ 9 $ 9 $ 5 $ 5
3 Years 32 25 28 20 29 28 15 14
5 Years 56 43 48 35 50 49 27 25
10 Years 124 95 107 77 111 110 60 57
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
THE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE
EXPENSES AND ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN. Federal
regulations require the Example to assume a 5% annual return, but actual return
will vary.
A Fund's payment of a distribution fee for Standard Shares may result in a
long-term shareholder indirectly paying more than the economic equivalent of the
maximum initial sales charge permitted under the Conduct Rules of the National
Association of Securities Dealers, Inc. Wright U.S. Treasury Money Market Fund
does not pay a distribution fee.
Each Feeder Fund invests exclusively in its corresponding Portfolio. Other
investment companies with different distribution arrangements and fees may
invest in the Portfolios in the future.
<PAGE>
Financial Highlights
The following information should be read in conjunction with the audited
financial statements that appear in the Funds' annual reports to shareholders.
The Funds' financial statements have been audited by Deloitte & Touche LLP,
independent certified public accountants, as experts in accounting and auditing.
The financial statements and the independent auditors' reports are incorporated
by reference into the Statement of Additional Information. Further information
regarding the performance of a Fund is contained in the annual report to
shareholders which may be obtained without charge by contacting the Funds'
Principal Underwriter, Wright Investors' Service Distributors, Inc. at (800)
888-9471.
<TABLE>
<CAPTION>
The Wright Managed Equity Trust
WRIGHT SELECTED Year Ended December 31, Standard Shares (+)
BLUE CHIP EQUITIES FUND ----------------------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992 1991 1990 1989 1988
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year. $17.730 $ 16.830 $ 13.850 $14.920 $14.790 $ 17.180 $ 13.840 $15.370 $13.760 $12.120
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Income (Loss) from Investment Operations:
Net investment income (1)........ $ 0.133 $ 0.204 $ 0.226 $ 0.233 $ 0.196 $ 0.222 $ 0.267 $ 0.323 $ 0.368 $ 0.315
Net realized and unrealized gain (loss) on
investments..................... 5.172 2.886 3.904 (0.763) 0.104 0.498 4.553 (0.843) 2.922 2.250
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total income (loss) from investment
operations.................... $ 5.305 $ 3.090 $ 4.130 $(0.530) $ 0.300 $ 0.720 $ 4.820 $(0.520) $ 3.290 $ 2.565
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Less Distributions:
From net investment income....... $(0.145)$ (0.200)$(0.200) $(0.180) $(0.170)$(0.200) $(0.250) $(0.320) $(0.310) $(0.275)
From net realized gain on
investments..................... (3.690) (1.990) (0.840) (0.360) - (2.910) (1.230) (0.690) (1.370) (0.650)
In excess of net realized gain on
investments..................... - - (0.110) - - - - - - -
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total distributions.............. $(3.835)$(2.190) $(1.150) $(0.540) $(0.170)$(3.110) $(1.480) $(1.010) $(1.680)$ (0.925)
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Net asset value, end of year....... $19.200 $ 17.730 $ 16.830 $13.850 $14.920 $ 14.790 $ 17.180 $13.840 $15.370 $13.760
======= ======= ======= ======= ======= ======= ======= ======= ======= =======
Total Return (1)................... 32.70% 18.57% 30.34% (3.52%) 2.06% 4.71% 35.98% (3.30%) 24.57% 21.31%
Ratios/Supplemental Data
Net assets, end of year
(000 omitted.................. $259,411 $208,166 $217,588 $186,016 $175,481 $152,997 $167,900 $108,571 $120,345 $114,042
Ratio of expenses to average daily net
assets.......................... 1.08%(4) 1.04% 1.04% 1.03% 1.03% 1.02% 1.08% 1.12% 1.11% 1.10%
Ratio of net investment income to
average daily net assets........ 0.75% 1.15% 1.44% 1.57% 1.28% 1.34% 1.67% 2.28% 2.38% 2.29%
Portfolio Turnover Rate of the
Fund (3)....................... 10% 43% 44% 72% 28% 77% 72% 83% 20% 29%
Portfolio Turnover Rate of the
Portfolio...................... 28% - - - - - - - - -
Average commission rate paid (2) . $0.0500 $0.0497 - - - - - - - -
<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.
(2) Average commission rate paid is computed by dividing the total dollar amount
of commissions paid during the fiscal year by the total number of shares
purchased and sold during the fiscal year on which commissions were charged.
For fiscal years beginning on or after September 1, 1995, the Fund is
required to disclose its average commission rate per share for security
trades on which commissions are charged. Amount for the year ended December
31, 1997 is for the period while the Fund was making investments directly in
securities. The average commission rate paid for the period since the Fund
transferred substantially all of its investable assets to the Portfolio is
shown in the Portfolio's financial statements which are included elsewhere
in this report.
(3) Portfolio turnover represents the rate of portfolio activity for the
period while the Fund was making investments directly in
securities.
(4) Includes each Fund's share of its corresponding Portfolio's allocated
expenses. (+) There were no Institutional Shares issued as of December 31, 1997.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
WRIGHT JUNIOR Year Ended December 31, Standard Shares (+)
BLUE CHIP EQUITIES FUND ---------------------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992 1991 1990 1989 1988
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year. $ 8.860 $ 10.850 $ 11.000 $11.950 $11.690 $ 14.720 $ 11.500 $13.020 $12.450 $11.030
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Income (Loss) from Investment Operations:
Net investment income (1)........ $ 0.160 $ 0.067 $ 0.120 $ 0.101 $ 0.101 $ 0.045 $ 0.072 $ 0.111 $ 0.177 $ 0.197
Net realized and unrealized
gain (loss) on investments...... 2.380 1.738 1.977 (0.431) 0.809 0.315 4.118 (1.491) 1.723 1.478
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total income (loss) from investment
operations.................... $ 2.540 $ 1.805 $ 2.097 $(0.330) $ 0.910 $ 0.360 $ 4.190 $(1.380) $ 1.900 $ 1.675
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Less Distributions:
From net investment income....... $(0.035) $(0.100) $(0.100) $(0.100) (0.060)$(0.030) $(0.070) $(0.140) $(0.150) $(0.175)
From net realized gain on
investment..................... (0.885) (3.695) (1.030) (0.520) (0.590) (3.360) (0.900) - (1.180) (0.080)
In excess of net realized gain
on investments ................. - - (1.117) - - - - - - -
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total distributions.............. $(0.920) $(3.795) $(2.247) $(0.620)$(0.650)$(3.390) $(0.970) $(0.140) $(1.330) $(0.255)
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Net asset value, end of year....... $10.480 $ 8.860 $ 10.850 $11.000 $11.950 $ 11.690 $ 14.720 $11.500 $13.020 $12.450
======= ======= ======= ======= ======= ======= ======= ======= ======= =======
Total Return (3)................... 28.92% 17.53% 20.51% (2.75%) 7.93% 3.28% 36.98% (10.61%) 15.61% 15.21%
Ratios/Supplemental Data
Net assets, end of year
(000 omitted.................... $ 33,490 $ 14,029 $ 25,993 $ 37,124 $68,226 $ 64,635 $120,911 $ 63,385 $ 98,593 $121,644
Ratio of expenses to average daily net
assets (1)..................... 1.18%(6) 1.20%(2) 1.17%(2) 1.11% 1.09% 1.07% 1.10% 1.14% 1.10% 1.08%
Ratio of net investment income to
average daily net assets (1) ... 0.35% 0.73% 0.89% 0.91% 0.86% 0.31% 0.52% 0.95% 1.34% 1.61%
Portfolio Turnover Rate of the
Fund (5)........................ 25% 41% 40% 36% 38% 80% 60% 75% 15% 38%
Portfolio Turnover Rate of the
Portfolio....................... 36% - - - - - - - - -
Average commission rate paid (4)... $0.0511 $0.0511 - - - - - - - -
<FN>
(1) For the years ended December 31, 1997, 1996 and 1995, the Investment Adviser
and/or the Principal Underwriter reduced their fees. Had such actions not
been undertaken, net investment income per share and the ratios would have
been as follows:
1997 1996 1995
- ------------------------------------------------------------------------
Net investment income per share.. $(0.041) $ 0.048 $ 0.105
======== ======= ========
Ratios (As a percentage of average net assets):
Expenses........................ 1.62%(6) 1.41% 1.28%
======== ======= ========
Net investment income........... (0.09%) 0.52% 0.78%
======== ======= ========
(2) Custodian fees were reduced by credits resulting from cash balances the
Trust maintained with the custodian. The computation of net expenses to
average daily net assets reported above for the years ended December 31,
1997, 1996 and 1995 is computed without consideration of such credits, in
accordance with reporting regulations in effect beginning in 1995. If these
credits were considered, the ratio of net expenses to average daily net
assets would have been reduced to 1.14%, 1.15% and 1.14% for the years ended
December 31, 1997, 1996 and 1995, respectively.
(3) Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each period reported. Dividends and distributions, if any, are assumed to be
invested at the net asset value on the record date.
(4) Average commission rate paid is computed by dividing the total dollar amount
of commissions paid during the fiscal year by the total number of shares
purchased and sold during the fiscal year on which commissions were charged.
For fiscal years beginning on or after September 1, 1995, the Fund is
required to disclose its average commission rate per share for security
trades on which commissions are charged. Amount for the year ended December
31, 1997 is for the period while the Fund was making investments directly in
securities. The average commission rate paid for the period since the Fund
transferred substantially all of its investable assets to the Portfolio is
shown in the Portfolio's financial statements which are included elsewhere
in this report.
(5) Portfolio turnover represents the rate of portfolio activity for the
period while the Fund was making investments directly in
securities.
(6) Includes each Fund's share of its corresponding Portfolio's allocated
expenses. (+) There were no Institutional Shares issued as of December 31, 1997.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
WRIGHT MAJOR BLUE CHIP Year Ended December 31, Standard Shares (+)
EQUITIES FUND ----------------------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992 1991 1990 1989 1988
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year. $12.450 $ 12.650 $ 11.390 $12.720 $13.380 $ 14.730 $ 10.760 $11.290 $10.590 $ 9.710
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Income (Loss) from Investment Operations:
Net investment income (1)........ $ 0.100 $ 0.064 $ 0.153 $ 0.180 $ 0.176 $ 0.179 $ 0.175 $ 0.192 $ 0.207 $ 0.211
Net realized and unrealized
gain (loss) on investments..... 3.515 2.131 3.107 (0.295) (0.046) 0.951 3.985 (0.522) 2.163 1.394
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total income (loss) from investment
operations.................... $ 3.615 $ 2.195 $ 3.260 $(0.115) $ 0.130 $ 1.130 $ 4.160 $(0.330) $ 2.370 $ 1.605
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Less Distributions:
From net investment income....... $(0.085) $ (0.120)$(0.160) $(0.160) $(0.160)$(0.160) $ (0.190)$(0.200) $(0.220)$ (0.185)
From net realized gain on
investments..................... (3.960) (2.275) (1.840) (1.055) (0.625) (2.320) - - (1.450) (0.540)
In excess of net realized gains (4) - - - - (0.005) - - - - -
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total distributions.............. $(4.045) $(2.395) $(2.000) $(1.215)$(0.790)$(2.480) $(0.190) $(0.200)$(1.670)$ (0.725)
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Net asset value, end of year....... $12.020 $ 12.450 $ 12.650 $11.390 $12.720 $ 13.380 $ 14.730 $10.760 $11.290 $10.590
======= ======= ======= ======= ======= ======= ======= ======= ======= =======
Total Return (3)................... 33.86% 17.63% 28.98% (0.70%) 1.00% 8.02% 38.90% (2.89%) 23.02% 16.66%
Ratios/Supplemental Data
Net assets, end of year
(000 omitted).................. $ 27,721 $ 25,815 $ 49,134 $51,085 $88,349 $ 81,674 $ 80,065 $ 44,293 $ 50,193 $ 60,989
Ratio of expenses to average daily net
assets (1)...................... 1.08% 1.08%(2) 1.07%(2)0.99% 0.97% 1.01% 1.03% 1.07% 1.14% 1.06%
Ratio of net investment income to
average daily net assets (1).... 0.68% 0.90% 1.19% 1.46% 1.37% 1.20% 1.34% 1.80% 1.76% 1.97%
Portfolio Turnover Rate............ 89% 45% 83% 55% 53% 70% 9% 18% 12% 14%
Average commission rate paid (4) .. $0.0556 $0.0564 - - - - - - - -
<FN>
(1) For the years ended December 31, 1997, 1996, 1995 and 1990, the Principal
Underwriter made a reduction of its fees. During each of the years ended
December 31, 1988 and 1989, the operating expenses of the Fund were reduced
either by a reduction of the investment adviser fee, administrator fee,
distribution fee, or a reduction of a combination of these fees. Had such
actions not been undertaken, the net investment income per share and the
ratios would have been as follows:
Year Ended December 31,
- -------------------------------------------------------------------------------------------------------------------------------
1997 1996 1995 1990 1989 1988
-----------------------------------------------------------------------------------
Net investment income per share.... $ 0.049 $ 0.061 $ 0.150 $ 0.183 $ 0.206 $ 0.208
======= ======= ======= ======= ======= =======
Ratios (As a percentage of average daily net assets):
Expenses......................... 1.43% 1.12% 1.09% 1.15% 1.15% 1.08%
======= ======= ======= ======= ======= =======
Net investment income............ 0.33% 0.86% 1.17% 1.72% 1.75% 1.95%
======= ======= ======= ======= ======= =======
(2) Custodian fees were reduced by credits resulting from cash balances the
Trust maintained with the custodian. The computation of net expenses to
average daily net assets reported above for the years ended December 31,
1997, 1996 and 1995 is computed without consideration of such credits, in
accordance with reporting regulations in effect beginning in 1995. If these
credits were considered, the ratio of net expenses to average daily net
assets would have been reduced to 1.05% for the years ended December 31,
1997, 1996 and 1995.
(3) Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each period reported. Dividends and distributions, if any, are assumed to be
invested at the net asset value on the record date.
(4) Average commission rate paid is computed by dividing the total dollar amount
of commissions paid during the fiscal year by the total number of shares
purchased and sold during the fiscal year on which commissions were charged.
For fiscal years beginning on or after September 1, 1995, the Fund is
required to disclose its average commission rate per share for security
trades on which commissions are charged.
(+) There were no Institutional Shares issued as of December 31, 1997.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Institutional Standard
Shares Shares
WRIGHT INTERNATIONAL Year Ended December 31,
BLUE CHIP EQUITIES FUND -------------------------------------------------------------------------------------------------
1997* 1997 1996 1995 1994 1993 1992 1991 1990 1989(2)
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year. $10.000 $ 16.690 $ 14.770 $13.090 $13.410 $ 10.520 $ 11.040 $ 9.520 $10.400 $10.000
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Income (loss) from Investment Operations:
Net investment income (1)........ $ 0.006 $ 0.185 $ 0.128 $ 0.142 $ 0.127 $ 0.107 $ 0.094 $ 0.115 $ 0.164 $ 0.092
Net realized and unrealized gain
(loss) on investments........... (0.646)++ 0.048++ 2.902 1.638 (0.347) 2.853 (0.524) 1.515 (0.874) 0.353
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total income (loss) from investment
operations.................... $(0.640)$ 0.233 $ 3.030 $ 1.780 $ (0.220)$ 2.960 $(0.430) $ 1.630 $(0.710)$ 0.445
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Less Distributions:
From net investment income....... $ - $ (0.163)$(0.100) $(0.100) $(0.100) $(0.070) $(0.090)$(0.110)$(0.170$ (0.045)
From net realized gains on
investments..................... (0.230 (0.740) (1.010) - - - - - - -
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total Distributions.............. $(0.230)$ (0.903)$(1.110) $(0.100) $(0.100) $(0.070) $(0.090)$(0.110)$(0.170)$ (0.045)
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Net asset value, end of year....... $ 9.130 $ 16.020 $16.690 $14.770 $13.090 $ 13.410 $ 10.520 $11.040 $ 9.520 $10.400
======= ======= ======= ======= ======= ======= ======= ======= ======= =======
Total Return (3)................... (6.37%) 1.54% 20.73% 13.61% (1.64%) 28.22% (3.94%) 17.21% (6.92%) 4.46%(4)
Ratios/Supplemental Data
Net assets, end of year
(000 omitted).................. $ 45,094 $212,698 $268,732 $237,176 $200,232 $100,071 $ 74,409 $ 51,802 $ 18,842 $ 14,363
Ratio of expenses to average daily net
assets.......................... 1.16%(6)+ 1.31%(6) 1.30% 1.29% 1.31% 1.46% 1.51% 1.67% 1.65% 0.59%(4)
Ratio of net investment income to
average daily net assets ....... 0.15%+ 0.82% 0.82% 0.99% 1.00% 0.67% 0.81% 1.12% 1.66% 3.28%(4)
Portfolio Turnover Rate of the
Fund (5)....................... 4% 4% 29% 12% 12% 30% 15% 23% 13% 0%
Portfolio turnover Rate of the
Portfolio...................... 37% 37% - - - - - - - -
Average commission rate paid (4) $0.0189 $0.0189 $0.1882 - - - - - - -
<FN>
(1) During each of the two years in the period ended December 31, 1990, the
operating expenses of the Fund were reduced either by a reduction of the
investment adviser fee, administrator fee, or distribution fee or a
reduction of a combination of these fees. Had such actions not been
undertaken, the net investment income per share and the annualized ratios
would have been as follows:
Year Ended December 31,
____________________
1990 1989(2)
Net investment income per share.... $ 0.092 $ 0.065
======= =======
Ratios (As a percentage of average daily net assets):
Expenses......................... 2.38% 1.55%(+)
======= =======
Net investment income............ 0.93% 2.33%(+)
======= =======
(2) For the period from September 14, 1989 (commencement of operations), to
December 31, 1989.
(3) Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each period reported. Dividends and distributions, if any, are assumed to be
invested at the net asset value on the record date.
(4) Average commission rate paid is computed by dividing the total dollar amount
of commissions paid during the fiscal year by the total number of shares
purchased and sold during the fiscal year on which commissions were charged.
For fiscal years beginning on or after September 1, 1995, the Fund is
required to disclose its average commission rate per share for security
trades on which commissions are charged. Amount for the year ended December
31, 1997 is for the period while the Fund was making investments directly in
securities. The average commission rate paid for the period since the Fund
transferred substantially all of its investable assets to the Portfolio is
shown in the Portfolio's financial statements which are included elsewhere
in this report.
(5) Portfolio turnover represents the rate of portfolio activity for the
period while the Fund was making investments directly in
securities.
(6) Includes each Fund's share of its corresponding Portfolio's allocated
expenses.
* For the period from July 7, 1997 (inception of offering Institutional shares) to December 31, 1997.
+ Annualized.
++ Per share amount is not in accordance with the net realized and unrealized
gain (loss) for the period because of the timing of sales of fund shares and
the amounts per share realized and unrealized gains and losses at such
times.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
The Wright Managed Income Trust
WRIGHT Year Ended December 31, Standard Shares (+)
U.S. TREASURY FUND --------------------------------------------------------------------------------------
1997 1996(3) 1995 1994 1993 1992 1991 1990 1989 1988
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year. $13.580 $ 14.710 $ 12.250 $14.360 $13.190 $ 13.220 $ 12.100 $12.300 $11.440 $11.540
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Income (loss) from Investment Operations:
Net investment income(1)......... $ 0.721 $ 0.769 $ 0.880 $ 0.880 $ 0.892 $ 0.911 $ 0.902 $ 0.912 $ 0.937 $ 0.950
Net realized and unrealized gain
(loss) on investments........... 0.462 (0.973) 2.458 (2.110) 1.170 (0.030) 1.120 (0.202) 0.859 (0.100)
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total income (loss) from investment
operations..................... $ 1.183 $ (0.204)$ 3.338 $(1.230) $ 2.062 $ 0.881 $ 2.022 $ 0.710 $ 1.796 $ 0.850
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Less Distributions:
From net investment income....... $(0.703)$ (0.756)$(0.878) $(0.880) $(0.892) $(0.911) $(0.902) $(0.910)$(0.936) $(0.950)
From net realized gain on investment
transactions.................... (0.110) (0.170) - - - - - - - -
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total distributions........... $(0.813) $ (0.926)$(0.878) $(0.880) $(0.892) $(0.911) $(0.902) $(0.910)$(0.936)$ (0.950)
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Net asset value, end of year....... $13.950 $ 13.580 $ 14.710 $12.250 $14.360 $ 13.190 $ 13.220 $12.100 $12.300 $11.440
======= ======= ======= ======= ======= ======= ======= ======= ======= =======
Total Return(2).................... 9.09% (1.23%) 28.18% (8.66%) 15.90% 7.07% 17.56% 6.33% 16.26% 7.60%
Ratios/Supplemental Data:
Net assets, end of year
(000 omitted)................... $ 74,158 $ 54,978 $ 15,156 $ 16,658 $ 29,846 $ 29,703 $ 33,857 $ 37,293 $ 49,445 $36,037
Ratio of net expenses to average daily
net assets...................... 1.01%(5) 0.90% 0.90% 0.90% 0.90% 0.90% 0.90% 0.90% 0.90% 0.90%
Ratio of net expenses after custodian fee
reduction to average dailynet assets 0.87%(5) - - - - - - - - -
Ratio of net investment income to
average daily net assets........ 5.34% 5.50% 6.60% 6.90% 6.30% 7.10% 7.40% 8.10% 7.90% 8.30%
Portfolio Turnover Rate of the Fund(4) 1% 65% 8% 1% 12% 15% 15% 32% 15% 14%
Portfolio Turnover Rate of the Portfolio 0% - - - - - - - - -
<FN>
(1) During each of the six years ended December 31, 1997, the operating expenses
of the Fund were reduced by an allocation of expenses to the Investment
Adviser or a reduction in distribution fees by the Principal Underwriter, or
a combination thereof. Had such action not been undertaken, the net
investment income per share and the ratios would have been as follows:
Year Ended December 31,
-----------------------------------------------------
1997 1996 1995 1994 1993 1992
- --------------------------------------------------------------------------------------
Net investment income per share.... $ 0.720 $ 0.769 $ 0.827 $ 0.854 $ 0.878 $ 0.898
======= ======= ======= ======= ======= =======
Ratios (As a percentage of average daily net assets):
Expenses........................ 1.02%(5) 0.90% 1.20% 1.10% 1.00% 1.00%
======= ======= ======= ======= ======= =======
Expenses after custodian fee
reduction..................... 0.89%(5) - - - - -
======= ======= ======= ======= ======= =======
Net investment income........... 5.33% 5.50% 6.2% 6.70% 6.20% 7.00%
======= ======= ======= ======= ======= =======
(2) Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each year reported. Dividends and distributions, if any, are assumed to be
reinvested at the net asset value on the record date.
(3) Certain of the per share data are based on average shares outstanding.
(4) Portfolio turnover represents the rate of portfolio activity for the
period while the Fund was making investments directly in
securities.
(5) Includes each Fund's share of its corresponding Portfolio's allocated
expenses. (+) There were no Institutional Shares issued as of December 31, 1997.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
WRIGHT U.S. TREASURY Year Ended December 31, Standard Shares (+)
--------------------------------------------------------------------------------------
NEAR TERM FUND 1997 1996 1995 1994 1993 1992 1991 1990 1989 1988
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year. $ 10.240 $ 10.450 $ 9.920 $10.840 $10.660 $ 10.750 $ 10.260 $10.330 $10.160 $10.500
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Income (loss) from Investment Operations:
Net investment income(1)......... $ 0.599 $ 0.606 $ 0.631 $ 0.588 $ 0.655 $ 0.739 $ 0.795 $ 0.871 $ 0.928 $ 0.928
Net realized and unrealized gain (loss)
on investments.................. (0.010) (0.212) 0.524 (0.920) 0.180 (0.090) 0.489 (0.068) 0.160 (0.340)
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total income (loss) from investment
operations..................... $ 0.589 $ 0.394 $ 1.155 $(0.332) $ 0.835 $ 0.649 $ 1.284 $ 0.803 $ 1.088 $ 0.588
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Less Distributions:
From net investment income....... $ (0.589)$(0.604) $(0.625) $(0.588) $ (0.655)$(0.739) $(0.794)$(0.873) $(0.918)$(0.928)
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Net asset value, end of year....... $ 10.240 $ 10.240 $ 10.450 $ 9.920 $10.840 $ 10.660 $ 10.750 $10.260 $10.330 $10.160
======= ======= ======= ======= ======= ======= ======= ======= ======= =======
Total Return(2).................... 5.93% 3.91% 11.93% (3.10%) 7.95% 6.26% 13.08% 8.23% 11.17% 5.75%
Ratios/Supplemental Data:
Net assets, end of year
(000 omitted)...................$102,565 $130,325 $143,600 $212,122 $380,917 $371,074 $232,407 $253,537 $237,558 $199,200
Ratio of net expenses to average daily
net assets...................... 0.87%(4) 0.80% 0.80% 0.70% 0.70% 0.80% 0.80% 0.80% 0.80% 0.80%
Ratio of net investment income to
average daily net assets........ 5.82% 5.90% 6.20% 5.70% 6.00% 6.90% 7.70% 8.60% 9.00% 8.90%
Portfolio Turnover Rate of the
Fund (3)....................... 4% 28% 21% 33% 22% 6% 18% 25% 28% 23%
Portfolio Turnover Rate of the
Portfolio...................... 0% - - - - - - - - -
<FN>
(1) During the year ended December 31, 1997, the Principal Underwriter reduced
its fees. Had such action not been undertaken, the net investment income per
share and the ratios would have been as follows:
Year Ended
December 31,
1997
Net investment income per share.... $ 0.597
=======
Ratios (As a percentage of average daily net assets):
Expenses........................ 0.89%(4)
=======
Net investment income........... 5.80%
=======
(2) Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each year reported. Dividends and distributions, if any, are assumed to be
reinvested at the net asset value on the record date.
(3) Portfolio turnover represents the rate of portfolio activity for the
period while the Fund was making investments directly in
securities.
(4) Includes each Fund's share of its corresponding Portfolio's allocated
expenses. (+) There were no Institutional Shares issued as of December 31, 1997.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
WRIGHT TOTAL RETURN Year Ended December 31, Standard Shares
BOND FUND --------------------------------------------------------------------------------------
1997 1996(3) 1995 1994 1993 1992 1991 1990 1989 1988
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year. $ 12.500 $ 13.120 $ 11.430 $13.010 $12.610 $ 12.580 $ 11.700 $12.010 $11.430 $11.560
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Income (loss) from Investment Operations:
Net investment income (1)........ $ 0.690 $ 0.720 $ 0.758 $ 0.740 $ 0.789 $ 0.830 $ 0.854 $ 0.886 $ 0.923 $ 0.947
Net realized and unrealized gain (loss)
on investments.................. 0.427 (0.631) 1.685 (1.580) 0.580 0.030 0.880 (0.312) 0.573 (0.130)
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total income (loss) from investment
operations..................... $ 1.117 $ (0.089)$ 2.443 $(0.840)$ 1.369 $ 0.860 $ 1.734 $ 0.574 $ 1.49 $ 0.817
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Less Distributions:
From net investment income....... $ (0.687)$ (0.709)$(0.753) $(0.740) $0.789) $(0.830) $(0.854) $(0.884)$(0.916) $(0.947)
From net realized gain on investments - - - - (0.177) - - - - -
In excess of net realized gain on
investments..................... - - - - (0.003) - - - - -
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total distributions........... $ (0.687)$(0.709)$(0.753) $(0.740) $0.969) $(0.830) $(0.854) $(0.884)$(0.916)$(0.947)
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Net asset value, end of year....... $ 12.930 $ 12.500 $ 13.120 $11.430 $13.010 $ 12.610 $ 12.580 $11.700 $12.010 $11.430
======= ======= ======= ======= ======= ======= ======= ======= ======= =======
Total Return(2).................... 9.25% 0.87% 21.97% (6.57%) 11.03% 7.13% 15.38% 5.29% 13.58% 7.24%
Ratios/Supplemental Data:
Net assets, end of year
(000 omitted)...................$ 80,004 $ 91,382 $122,762 $143,497 $259,513 $217,564 $134,728 $112,408 $82,141 $31,410
Ratio of net expenses to average daily
net assets...................... 0.90% 0.80% 0.80% 0.80% 0.80% 0.80% 0.80% 0.80% 0.90% 0.90%
Ratio of net investment income to
average daily net assets........ 5.50% 5.70% 6.20% 6.10% 6.00% 6.70% 7.20% 7.70% 7.70% 8.20%
Portfolio Turnover Rate.......... 34% 96% 50% 32% 36% 13% 56% 48% 33% 11%
<FN>
(1) The Principal Underwriter reduced its distribution fees during each of the
two years in the period ended December 31, 1989. Had such actions not been
undertaken, the net investment income per share and the ratios would have
been as follows:
Year Ended December 31,
1989 1988
Net investment income per share.... $ 0.911 $ 0.934
======= =======
Ratios (As a percentage of average daily net assets):
Expenses....................... 1.0% 1.0%
======= =======
Net investment income........... 7.6% 8.1%
======= =======
(2) Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each year reported. Dividends and distributions, if any, are assumed to be
reinvested at the net asset value on the record date.
(3) Certain of the per share data are based on average shares outstanding.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Institutional Standard
Shares Shares
WRIGHT CURRENT Year Ended December 31,
INCOME FUND ------------------------------------------------------------------------------------------------------
1997* 1997 1996 1995 1994 1993 1992 1991 1990 1989 1988
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of year....................$10.000 $ 10.430 $ 10.670 $ 9.710 $10.750 $10.780 $ 10.850 $10.160 $10.090 $ 9.660 $ 9.760
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Income (loss) from Investment Operations:
Net investment income(1)... $ 0.313 $ 0.658 $ 0.674 $ 0.696 $ 0.690 $ 0.728 $ 0.767 $ 0.798 $ 0.859 $ 0.870 $ 0.929
Net realized and unrealized gain
(loss) on investments..... 0.120 0.206 (0.239) 0.955 (1.040) (0.030) (0.069) 0.690 0.080 0.440 (0.100)
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total income (loss) from
investment operations.... 0.433 $ 0.864 $ 0.435 $ 1.651 $ (0.350) $ 0.698 $ 0.698 $ 1.488 $ 0.939 $ 1.310 $ 0.829
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Less Distributions:
From net investment income $(0.313)(6)$(0.664)$ (0.675)$(0.691)$(0.690)(7)$(0.728)$(0.767)$(0.798)$(0.859)$ (0.870) $(0.929)
From net realized gain..... - - - - - - (0.001) - (0.010) (0.010) -
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total distributions....... $(0.313) $(0.664) $(0.675) $(0.691)$(0.690) $(0.728) $(0.768)$(0.798)$(0.869)$ (0.880 $ (0.929)
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Net asset value, end of year. $10.120 $10.630 $10.430 $ 10.670 $ 9.710 $10.750 $10.780 $10.850 $ 10.160 $10.090 $ 9.660
======== ======== ======= ======== ======== ======== ======== ======= ======== ======== ========
Total Return(5).............. 4.40% 8.56% 4.31% 17.46% (3.30%) 6.59% 6.73% 15.31% 9.85% 14.15% 8.71%
Ratios/Supplemental Data:
Net assets, end of year
(000 omitted).............$21,801 $76,217 $64,623 $66,345 $84,178 $115,158 $99,676 $65,700 $ 17,601 $13,925$ 10,990
Ratio of net expenses to average
daily net assets..........0.48%(3)(4)0.89%(3) 0.90% 0.90% 0.80% 0.80% 0.90% 0.90% 0.90% 0.90% 0.00%
Ratio of net investment income to
average daily net assets..4.70%(4) 6.44% 6.50% 6.80% 6.90% 6.70% 7.20% 7.60% 8.60% 8.80% 9.50%
Portfolio Turnover Rate of
the Fund(2............... 2% 3% 9% 26% 10% 4% 13% 5% 10% 15% 12%
Portfolio Turnover Rate of
the Portfolio............ 7% 7% - - - - - - - - -
<FN>
(1) For the year ended December 31, 1997, the Principal Underwriter reduced its
fees. During each of the four years in the period ended December 31, 1991,
the operating expenses of the Fund were reduced either by a reduction of the
investment adviser fee, administrator fee, or distribution fee or through
the allocation of expenses to the Adviser, or a combination of these. Had
such actions not been undertaken, the net investment income per share and
the ratios would have been as follows:
Year Ended December 31,
----------------------------------------------------------------------------------------
1997 1991 1990 1989 1988
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income per share $ 0.652 $ 0.787 $ 0.809 $ 0.821 $ 0.807
======== ======= ======== ======== ========
Ratios (As a percentage of average daily net assets):
Expenses.................. 0.95%(3)(4) 1.0% 1.4% 1.4% 1.8%
======== ======== ======= ======== ========
Net investment income...... 6.38%(4) 7.5% 8.1% 8.3% 7.7%
========= ========= ======= ======= ========
(2) Portfolio turnover represents the rate of portfolio activity for the
period while the Fund was making investments directly in
securities.
(3) Includes each Fund's share of its corresponding Portfolio's allocated
expenses. (4) Annualized.
(5) Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each year reported. Dividends and distributions, if any, are assumed to be
reinvested at the net asset value on the record date.
(6) Includes distribution in excess of net investment income of $0.00001 per
share. (7) Includes distribution in excess of net investment income of $0.00013
per share.
* For the period from July 7, 1997 (start of business) to December 31, 1997.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE WRIGHT U.S. TREASURY Year Ended December 31,
MONEY MARKET FUND -----------------------------------------------------------------
1997 1996 1995 1994 1993 1992 1991(2)
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value - beginning of year. $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Income from Investment Operations:
Net investment income(1).......... 0.04739 0.04745 0.05212 0.03494 0.02503 0.03221 0.02526
Less Distributions:
From net investment income........ (0.04739) (0.04745)(0.05212)(0.03494)(0.02503)(0.03221)(0.02526)
------- ------- ------- ------- ------- ------- -------
Net asset value, end of year........ $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
======== ======== ======= ======== ======== ======== ========
Total Return(4)..................... 4.84% 4.85% 5.34% 3.55% 2.53% 3.27% 5.06%(3)
Ratios/Supplemental Data:
Net assets, end of year (000 omitted) $87,059 $ 95,184 $ 45,889 $68,877 $11,011 $13,856 $15,233
Ratio of net expenses to average daily net
assets (1)....................... 0.45% 0.45%(5) 0.46%(5) 0.45% 0.45% 0.46% 0.25%(3)
Ratio of net investment income to average daily net
assets (1)....................... 4.74% 4.73% 5.22% 3.77% 2.52% 3.19% 4.95%(3)
<FN>
(1) During each of the years in the seven-year period ended December 31, 1997,
the Investment Adviser reduced its fee and in certain years was allocated a
portion of the operating expenses. Had such actions not been undertaken, net
investment income per share and the ratios would have been as follows:
Year Ended December 31,
-------------------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992 1991(2)
-------------------------------------------------------------------------------------
Net investment income per share..... $0.04599 $0.04524$0.05120 $0.03253 $0.01977 $0.02958 $0.02159
======== ======== ================ ======== ======== ========
Ratios (As a percentage of average net assets):
Expenses.......................... 0.59% 0.67% 0.65% 0.71% 0.97% 0.72% 0.97%(3)
======== ======== ================ ======== ======== ========
Net investment income ............ 4.60% 4.51% 5.03% 3.51% 1.99% 2.93% 4.23%(3)
======== ======== ================ ======== ======== ========
(2) For the period from the start of business, June 28, 1991, to December 31,
1991. (3) Annualized.
(4) 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 payable date.
(5) Custodian fees were reduced by credits resulting from cash balances the
Trust maintained with the custodian. The computation of net expenses to
average daily net assets reported above is computed without consideration of
such credits, in accordance with reporting regulations in effect beginning
in 1995. If there credits were considered, the ratio of net expenses to
average daily net assets would have been reduced to 0.44% and 0.45% for the
years ended December 31, 1996 and 1995, respectively.
</FN>
</TABLE>
<PAGE>
The Funds and their
Investment Objectives and Policies
The investment objective of each Fund and its investment policies are set
forth below. There can be no assurance that any of the Funds will achieve its
investment objective. The market price of securities held by the Funds and the
net asset value of each Fund's shares will fluctuate in response to stock or
bond market developments and, for WIBC, currency rate fluctuations.
The Wright Managed Equity Trust
The Wright Managed Equity Trust (the "Equity Trust") consists of four
equity funds: Wright Selected Blue Chip Equities Fund (WBC), Wright Major Blue
Chip Equities Fund (WMBC), Wright Junior Blue Chip Equities Fund (WJBC), and
Wright International Blue Chip Equities Fund (WIBC) (the "Equity Funds").
The objective of each Equity Fund is to provide long-term growth of capital
and at the same time earn reasonable current income. Securities selected for
each Fund or Portfolio are drawn from an investment list prepared by Wright
Investors' Service, Inc. ("Wright" or "Investment Adviser"), and known as The
Approved Wright Investment List (the "AWIL"), The Approved Wright Junior Blue
Chip List (the "AWJBCL"), and the International Approved Wright Investment List
(the "International AWIL").
All companies on the AWIL, AWJBCL, or International AWIL are, in the
opinion of Wright, soundly financed "Blue Chips" with established records of
earnings profitability and equity growth. All have established investment
acceptance and active, liquid markets for their publicly owned shares. See the
Statement of Additional Information for a more detailed description of Wright
Quality Ratings.
Approved Wright Investment List (AWIL). Wright systematically reviews about
3,000 U.S. companies in its proprietary database in order to identify those
which, on the basis of at least five years of audited records, pass the minimum
standards of prudence (e.g., the value of the company's assets and shareholders'
equity exceeds certain minimum standards and its operations have been profitable
during the last three years) and thus are suitable for consideration by
fiduciary investors. Companies which meet these requirements (about 1,700
companies) are considered by Wright to be of "investment grade." They may be
large or small, may have their securities traded on exchanges or over the
counter, and may include companies not currently paying dividends on their
shares. These companies are then subjected to extensive analysis and evaluation
in order to identify those which meet Wright's 32 fundamental standards of
investment quality. Only those companies meeting or exceeding these standards
are assigned a Wright Quality Rating and are eligible for selection by the
Wright Investment Committee for inclusion in the AWIL. The AWIL will normally be
made up of about 350 companies.
Wright Selected Blue Chip Equities Fund (WBC). This Fund seeks to achieve
its investment objective by investing substantially all of its assets in a
corresponding Portfolio that has the same investment objective as the Fund.
Selected Blue Chip Equities Portfolio ("SBCP") seeks to enhance total investment
return (consisting of price appreciation plus income) by providing active
management of equity securities of well-established companies meeting strict
quality standards. Equity securities are limited to those companies whose
current operations reflect defined, quantified characteristics which have been
identified by Wright as being likely to provide comparatively superior total
investment return. The process selects companies from the quality companies on
the AWIL on the basis of Wright's evaluation of their recent valuation and
price/earnings momentum. These selections are further reviewed to determine
those that have the best value in terms of current price and current, as well as
forecasted, earnings. Capitalization of companies selected is not a
consideration. Companies may be small or large. Investments are equally
weighted. Professional investment personnel would characterize Wright Selected
Blue Chip Equities Fund as a growth fund with a value bias.
The disciplines which determine sale include preventing individual holdings
from exceeding 2 1/2 times their normal value position in this Portfolio,
preventing the retention of the securities of any company which no longer meets
the standards of the AWIL, and portfolio holdings which cease to meet the
outlook criteria described above. The disciplines which determine purchase
provide that new funds, income from securities currently held, and proceeds of
sales of securities will be used to increase those positions which at current
market values are the furthest below their normal target values and to purchase
companies which become eligible for the portfolio.
The Portfolio will, under normal market conditions, invest at least 80% of
its net assets in Selected Blue Chip equity
<PAGE>
securities, including common stocks, preferred stocks and securities
convertible into stock. This is a fundamental policy that can only be changed
with shareholder approval. However, for temporary defensive purposes the
Portfolio may hold cash or invest more than 20% of its net assets in the
short-term debt securities described under "Other Investment Policies -
Defensive Investments."
Wright Major Blue Chip Equities Fund (WMBC). This Fund seeks to enhance
total investment return (consisting of price appreciation plus income) by
providing management of a broadly diversified portfolio of equity securities of
larger well-established companies meeting strict quality standards. The Fund
will, through continuous professional investment supervision by Wright, pursue
these objectives by investing in a diversified portfolio of common stocks of
what are believed to be high-quality, well-established and profitable companies.
The Fund will, under normal market conditions, invest at least 80% of its
net assets in equity securities, including common stocks, preferred stocks and
securities convertible into stock. This is a fundamental policy that can only be
changed with shareholder approval. However, for temporary defensive purposes the
Fund may hold cash or invest more than 20% of its net assets in the short-term
debt securities described under "Other Investment Policies - Defensive
Investments."
This Fund is quality oriented and is suitable for a total equity account or
as a base portfolio for accounts with multiple objectives. Investment, except
for temporary defensive investments, will be made solely in larger companies on
the AWIL. In selecting companies from the AWIL for this portfolio, the
Investment Committee of Wright selects, based on quantitative formulae, those
companies which are expected to do better over the intermediate term. The
quantitative formulae take into consideration factors such as over/under
valuation and compatibility with current market trends. Investments in the
portfolio are equally weighted in the selected securities. Companies selected
may be expected to have capitalization characteristics similar to companies
included in the Standard & Poor's 500 Composite Stock Index.
The disciplines which determine sale include preventing individual holdings
from exceeding 2 1/2 times their normal value position in this Fund and
requiring the sale of the securities of any company which no longer meets the
standards of the AWIL. Also, portfolio holdings which fall in the unfavorable
category based on the quantitative formulae described above are generally sold.
The disciplines which determine purchase provide that new funds, income from
securities currently held, and proceeds of sales of securities will be used to
increase those positions which at current market are the furthest below their
normal target values and to purchase companies which become eligible for the
portfolio as described above.
The Approved Wright Junior Blue Chip List (the "AWJBCL"). During its review
of U.S. companies for the AWIL, Wright identifies smaller quality companies for
inclusion on the Approved Wright Junior Blue Chip List. This selection process
uses a slightly different set of 32 fundamental standards of investment quality
which allows a lower market capitalization than is acceptable for the AWIL but
applies a higher standard to profitability and growth characteristics. See the
Statement of Additional Information for a more detailed explanation of Wright
Quality Ratings.
Wright Junior Blue Chip Equities Fund (WJBC). This Fund seeks to achieve
its investment objective by investing substantially all of its assets in a
corresponding Portfolio that has the same investment objective as the Fund.
Junior Blue Chip Equities Portfolio ("JBCP") seeks to enhance total investment
return (consisting of price appreciation plus income) by providing management of
equity securities of smaller companies still experiencing their rapid growth
period. Equity securities of companies which have not only a strong balance
sheet but also strong recent earnings and price momentum are selected from the
AWJBCL. Investments are equally weighted.
The Portfolio will, under normal market conditions, invest at least 80% of
its net assets in Junior Blue Chip equity securities, including common stocks,
preferred stocks and securities convertible into stock. This is a fundamental
policy that can only be changed with shareholder approval. However, for
temporary defensive purposes the Portfolio may hold cash or invest more than 20%
of its net assets in the short-term debt securities described under "Other
Investment Policies - Defensive Investments."
Somewhat higher volatility of market pricing and greater variability of
individual stock investment returns can be expected in this Fund as compared to
either Wright Major Blue Chip Equities Fund or Wright Selected Blue Chip
Equities Fund, which invest in larger companies.
The International Approved Wright Investment List (International AWIL).
Wright systematically reviews
<PAGE>
approximately 11,000 non-U.S. companies from 46 countries contained in the
Worldscope(R) database in order to identify those which, on the basis of at
least five years of audited records, pass the minimum standards of prudence
(e.g., the value of the company's assets and shareholders' equity exceeds
certain minimum standards and its operations have been profitable during the
last three years) and thus are suitable for consideration by fiduciary
investors. Companies which meet these requirements (about 3,800 companies) are
considered by Wright to be suitable for prudent investment. They may be large or
small, may have their securities traded on exchanges or over the counter, and
may include companies not currently paying dividends on their shares. These
approximately 3,800 companies are then subjected to extensive analysis and
evaluation in order to identify those which meet Wright's 32 fundamental
standards of investment quality. Only those companies meeting or exceeding these
standards (a subset of the 3,800 companies considered for prudent investment)
are assigned a Wright Quality Rating and are eligible for selection by the
Wright Investment Committee for inclusion in the International AWIL.
Wright International Blue Chip Equities Fund (WIBC). This Fund seeks to
achieve its investment objective by investing substantially all of its assets in
a corresponding Portfolio that has the same investment objective as the Fund.
International Blue Chip Equities Portfolio ("IBCP") seeks to enhance total
investment return (consisting of price appreciation plus income) by providing
active management of a broadly diversified portfolio of equity securities of
well-established, non-U.S. companies meeting strict quality standards. The
Portfolio will, through continuous professional investment supervision by
Wright, pursue these objectives by investing in a diversified portfolio of
equity securities of high-quality, well-established and profitable non-U.S.
companies having their principal business activities in at least three different
countries outside the United States.
The Portfolio will, under normal market conditions, invest at least 80% of
its net assets in International Blue Chip equity securities, including common
stocks, preferred stocks and securities convertible into stock. This is a
fundamental policy that can only be changed with shareholder approval.
International Blue Chip equity securities are those which are included in the
International AWIL, as described above. However, for temporary defensive
purposes the Portfolio may hold cash or invest more than 20% of its net assets
in the short-term debt securities described under "Other Investment Policies -
Defensive Investments."
The Portfolio may purchase equity securities traded on a securities market
of the country in which the company is located or other foreign securities
exchanges, or it may purchase American Depositary Receipts ("ADRs") traded in
the United States. Purchases of shares of the Fund are suitable for investors
wishing to diversify their portfolios by investing in non-U.S. companies or for
investors who simply wish to participate in non-U.S. investments. Although the
Fund's and the Portfolio's net asset values will be calculated in U.S. dollars,
fluctuations in foreign currency exchange rates may affect the value of an
investment in the Portfolio and the Fund.
The disciplines which determine sale include disposing of equity securities
of any company which no longer meets the quality standards of the International
AWIL. The disciplines which determine purchase provide that new funds, income
from the securities held by the Portfolio and proceeds of sales of the
securities held by the Portfolio will be used to increase those positions which
at current market value are the furthest below their normal target values.
The Wright Managed Income Trust
The Wright Managed Income Trust (the "Income Trust") consists of four fixed
income funds, Wright U.S. Treasury Fund (WUSTB), Wright U.S. Treasury Near Term
Fund (WNTB), Wright Total Return Bond Fund (WTRB), and Wright Current Income
Fund (WCIF) (the "Income Funds"), and a money market fund, Wright U.S. Treasury
Money Market Fund.
Each Income Fund's investment objective is to provide a high level of
return consistent with the quality standards and average maturity for such Fund.
Each Fund seeks to achieve its objective through the investment policies
described below.
Wright U.S. Treasury Fund (WUSTB). This Fund seeks to achieve its
investment objective by
<PAGE>
investing substantially all of its assets in a corresponding Portfolio that
has the same investment objective as the Fund. U.S. Treasury Portfolio ("USTP")
invests in U.S. Treasury bills, notes and bonds. Under normal market conditions,
the Portfolio will invest substantially all, but in any case at least 65%, of
its total assets in such U.S. Treasury obligations and in repurchase agreements
with respect to such obligations. The Portfolio will not invest in
mortgage-related securities.
Wright U.S. Treasury Near Term Fund (WNTB). This Fund seeks to achieve its
investment objective by investing substantially all of its assets in a
corresponding Portfolio that has the same investment objective as the Fund. U.S.
Treasury Near Term Portfolio ("USTNTP") invests in U.S. Treasury obligations
with an average weighted maturity of less than five years. This Fund is designed
to appeal to the investor seeking a high level of income that is normally
somewhat less variable and normally somewhat higher than that available from
short-term U.S. Treasury money market securities and who is also seeking to
limit fluctuation of capital (i.e. compared with longer term U.S. Treasury
securities). Portfolio securities will consist entirely of U.S. Treasury
obligations, such as U.S. Treasury bills, notes and bonds.
Wright Total Return Bond Fund (WTRB). The Fund invests in bonds or other
high-grade debt securities selected by the Investment Adviser with a weighted
average maturity that, in the Investment Adviser's judgment, produces the best
total return, i.e., the highest total of ordinary income plus capital
appreciation. There are no limits on the minimum or maximum weighted average
maturity of the Fund's portfolio or on the maturity of any individual security.
Accordingly, investment selections may differ depending on the particular phase
of the interest rate cycle. Assets of this Fund may be invested in U.S.
Government and agency obligations, certificates of deposit of federally insured
banks and corporate obligations rated at the date of investment "A" or better
(high grade) by Standard & Poor's Ratings Group ("S&P") or by Moody's Investors
Service, Inc. ("Moody's") or, if not rated by such rating organizations, of
comparable quality as determined by Wright pursuant to guidelines established by
the Trustees. In any case, they must also meet Wright Quality Rating Standards.
The Fund will dispose of securities downgraded below A.
Wright Current Income Fund (WCIF). This Fund seeks to achieve its
investment objective by investing substantially all of its assets in a
corresponding Portfolio that has the same investment objective as the Fund.
Current Income Portfolio ("CIP") invests primarily in debt obligations issued or
guaranteed by the U.S. Government or any of its agencies or instrumentalities,
mortgage-related securities of governmental or corporate issuers and corporate
debt securities. The U.S. Government securities in which the Portfolio may
invest include direct obligations of the U.S. Government, such as bills, notes,
and bonds issued by the U.S. Treasury; obligations of U.S. Government agencies
and instrumentalities secured by the full faith and credit of the U.S. Treasury,
such as securities of the Government National Mortgage Association (GNMA) or the
Export-Import Bank; obligations secured by the right to borrow from the U.S.
Treasury, such as securities issued by the Federal Financing Bank or the Student
Loan Marketing Association; and obligations backed only by the credit of the
government agency itself, such as securities of the Federal Home Loan Bank, the
Federal National Mortgage Association (FNMA) and the Federal Home Loan Mortgage
Corporation (FHLMC).
The Portfolio may invest in mortgage-related securities issued by certain
of the agencies or federally chartered corporations listed above. These include
mortgage-backed securities of GNMA, FNMA and FHLMC, debentures and short-term
notes issued by FNMA and collateralized mortgage obligations issued by FHLMC.
The Portfolio expects to concentrate its investments in Ginnie Mae pass-through
securities guaranteed by the Government National Mortgage Association (GNMA or
Ginnie Mae). These securities are backed by a pool of mortgages which pass
through to investors the principal and interest payments of homeowners. Ginnie
Mae guarantees that investors will receive timely principal payments even if
homeowners do not make their mortgage payments on time. See "Other Investment
Policies - Mortgage-Related Securities" below.
The corporate debt securities in which the Portfolio may invest include
commercial paper and other short-term instruments rated A-1 by S&P or P-1 by
Moody's. The Portfolio may invest in unrated debt securities if these are
determined by Wright pursuant to guidelines established by the Trustees to be of
a quality comparable to that of the rated securities in which the Portfolio may
invest. All of the corporate debt securities purchased by the Portfolio must
meet Wright Quality Rating Standards.
The Portfolio may enter into repurchase agreements with respect to any
securities in which it may invest.
Wright U.S. Treasury Money Market Fund (WTMM). The Fund's objective is to
provide as high a rate of current income as possible consistent with the
preservation of capital and maintenance of liquidity. The Fund will pursue its
objective by investing exclusively in securities of the U.S. Government and its
agencies that are backed by the full faith and credit of the U.S. Government
("U.S. Treasury securities") and in repurchase agreements relating to such
securities. At least 80% of the Fund's assets will be invested in direct
obligations of the U.S. Treasury, including Treasury bills, notes and bonds,
which differ only in their interest rates, maturities and times of issuance. Up
to 20% of the Fund's net assets may
<PAGE>
be held in cash or invested in repurchase agreements. However, at the
present time, the Fund intends to invest only in U.S. Treasury bills, notes and
bonds and does not intend to invest in repurchase agreements.
The Fund will limit its portfolio to investments maturing in 13 months or
less and maintain a weighted average maturity of not more than 90 days. The Fund
will seek to maintain a net asset value of $1.00 per share, but there is no
assurance that the Fund will be able to do so. The yield of the Fund will
fluctuate in response to changes in market conditions and interest rates.
The Fund will limit its investments to legal investments and investment
practices for federal credit unions as set forth in the Federal Credit Union Act
and the National Credit Union Administration Regulations. The Fund will provide
all federal credit union shareholders of record with sixty (60) days' written
notice prior to changing such investment policy.
* * *
None of the Funds is intended to be a complete investment program, and the
prospective investor should take into account his objectives and other
investments when considering the purchase of any Fund's shares. The Funds cannot
eliminate risk or assure achievement of their objectives.
Other Investment Policies
The Equity Trust, the Income Trust and the Portfolio Trust have adopted
certain fundamental investment restrictions which are enumerated in detail in
the Statement of Additional Information and which may be changed as to a Fund or
Portfolio only by the vote of a majority of the Fund's or the Portfolio's
outstanding voting securities. Except for such enumerated restrictions and as
otherwise indicated in this Prospectus, the investment objective and policies of
each Fund and Portfolio are not fundamental policies and accordingly may be
changed by the Trustees of each Trust and the Portfolio Trust without obtaining
the approval of a Fund's shareholders or the investors in the corresponding
Portfolio, as the case may be. If any changes were made in a Fund's investment
objective, the Fund might have investment objectives different from the
objective which an investor considered appropriate at the time the investor
became a shareholder in the Fund.
The use of the term "Funds" in the discussion under the caption "Other
Investment Policies" is intended to refer to both the Funds and the Portfolios
unless otherwise indicated.
Repurchase Agreements. Each of the Funds may enter into repurchase
agreements to the extent permitted by its investment policies. A repurchase
agreement is an agreement under which the seller of securities agrees to
repurchase and the Fund agrees to resell the securities at a specified time and
price. A Fund may enter into repurchase agreements only with large,
well-capitalized banks or government securities dealers that meet Wright credit
standards. In addition, such repurchase agreements will provide that the value
of the collateral underlying the repurchase agreement will always be at least
equal to the repurchase price, including any accrued interest earned under the
repurchase agreement. In the event of a default or bankruptcy by a seller under
a repurchase agreement, the Fund will seek to liquidate such collateral.
However, the exercise of the right to liquidate such collateral could involve
certain costs, delays and restrictions and is not ultimately assured. To the
extent that proceeds from any sale upon a default of the obligation to
repurchase are less than the repurchase price, the Fund could suffer a loss.
Forward Commitments and When-Issued Securities. Each Fund may purchase
when-issued securities and make contracts to purchase or sell securities for a
fixed price at a future date beyond customary settlement time. A Fund is
required to hold and maintain in a segregated account with the Fund's custodian
or subcustodian until the settlement date, cash or liquid securities in an
amount sufficient to meet the purchase price. Alternatively, a Fund may enter
into offsetting contracts for the forward sale of other securities that it owns.
Securities purchased or sold on a when-issued or forward commitment basis
involve a risk of loss if the value of the security to be purchased declines
prior to the settlement date or if the value of the security to be sold
increases prior to the settlement date. Although a Fund would generally purchase
securities on a when-issued or forward commitment basis with the intention of
acquiring securities for its portfolio, each Fund may dispose of a when-issued
security or forward commitment prior to settlement if the Investment Adviser
deems it appropriate to do so.
Defensive Investments. During periods of unusual market conditions, when
Wright believes that investing for temporary defensive purposes is appropriate,
all or a portion of each Fund's or Portfolio's assets may be held in cash or
invested in short-term obligations. Short-term obligations include but are not
<PAGE>
limited to short-term obligations issued or guaranteed as to interest and
principal by the U.S. Government or any agency or instrumentality thereof
(including repurchase agreements collateralized by such securities); commercial
paper which at the date of investment is rated A-1 by S&P or P-1 by Moody's, or,
if not rated by such rating organizations, is deemed by Wright pursuant to
procedures established by the Trustees to be of comparable quality; short- term
corporate obligations and other debt instruments which at the date of investment
are rated AA or better by S&P or Aa or better by Moody's or, if unrated by such
rating organizations, are deemed by Wright pursuant to procedures established by
the Trustees to be of comparable quality; and certificates of deposit, bankers'
acceptances and time deposits of domestic banks which are determined to be of
high quality by Wright pursuant to procedures established by the Trustees. The
Funds may invest in instruments and obligations of banks that have other
relationships with the Funds, the Portfolios, Wright or Eaton Vance Management,
the Trusts' Administrator ("Eaton Vance" or "Administrator"). No preference will
be shown towards investing in banks which have such relationships.
Mortgage-Related Securities. WTRB and WCIF may invest in mortgage-related
securities, including collateralized mortgage obligations ("CMOs") and other
derivative mortgage-related securities. These securities will either be issued
by the U.S. Government or one of its agencies or instrumentalities or, if
privately issued, supported by mortgage collateral that is insured, guaranteed
or otherwise backed by the U.S. Government or its agencies or instrumentalities.
The Funds do not invest in the residual classes of CMOs, stripped
mortgage-related securities, leveraged floating rate instruments or indexed
securities.
Mortgage-related securities represent participation interests in pools of
adjustable and fixed mortgage loans. Unlike conventional debt obligations,
mortgage-related securities provide monthly payments derived from the monthly
interest and principal payments (including any prepayments) made by the
individual borrowers on the pooled mortgage loans. The mortgage loans underlying
mortgage- related securities are generally subject to a greater rate of
principal prepayments in a declining interest rate environment and to a lesser
rate of principal prepayments in an increasing interest rate environment. Under
certain interest and prepayment rate scenarios, a Fund may fail to recover the
full amount of its investment in mortgage-related securities purchased at a
premium, notwithstanding any direct or indirect governmental or agency
guarantee. The Fund may realize a gain on mortgage-related securities purchased
at a discount. Since faster than expected prepayments must usually be invested
in lower yielding securities, mortgage-related securities are less effective
than conventional bonds in "locking in" a specified interest rate. Conversely,
in a rising interest rate environment, a declining prepayment rate will extend
the average life of many mortgage-related securities. Extending the average life
of a mortgage-related security increases the risk of depreciation due to future
increases in market interest rates.
A Fund's investments in mortgage-related securities may include
conventional mortgage pass-through securities and certain classes of multiple
class CMOs. Senior CMO classes will typically have priority over residual CMO
classes as to the receipt of principal and/or interest payments on the
underlying mortgages. The CMO classes in which a Fund may invest include
sequential and parallel pay CMOs, including planned amortization class ("PAC")
and target amortization class ("TAC") securities.
Different types of mortgage-related securities are subject to different
combinations of prepayment, extension, interest rate and/or other market risks.
Conventional mortgage pass-through securities and sequential pay CMOs are
subject to all of these risks, but are typically not leveraged. PACs, TACs and
other senior classes of sequential and parallel pay CMOs involve less exposure
to prepayment, extension and interest rate risk than other mortgage-related
securities, provided that prepayment rates remain within expected prepayment
ranges or "collars."
Lending Portfolio Securities. All of the Funds in the Equity Trust may seek
to increase total return by lending portfolio securities to broker-dealers or
other institutional borrowers. Such loans are required to be continuously
secured by collateral in cash or liquid securities held by the Fund's custodian
and maintained on a current basis at an amount at least equal to the market
value of the securities loaned, which will be marked to market daily. During the
existence of a loan, a Fund will continue to receive the equivalent of the
interest or dividends paid by the issuer on the securities loaned and will also
receive a fee, or all or a portion of the interest, if any, on investment of the
collateral. However, the Fund may at the same time pay a transaction fee to such
borrowers and administrative expenses, such as finders' fees to third parties.
As with other extensions of credit there are risks of delay in recovery or even
loss of rights in the securities loaned if the borrower of the securities fails
financially. However, the loans will be made only to organizations deemed by the
<PAGE>
Investment Adviser to be of good standing and when, in the judgment of the
Investment Adviser, the consideration which can be earned from securities loans
of this type justifies the attendant risk. The financial condition of the
borrower will be monitored by the Investment Adviser on an ongoing basis and
collateral values will be continuously maintained at no less than 100% by
"marking to market" daily. If the Investment Adviser decides to make securities
loans, it is intended that the value of the securities loaned would not exceed
30% of the Fund's total assets.
Foreign Investment Risk. Investing in securities of foreign companies and
governments involves certain considerations in addition to those arising when
investing in domestic securities. These considerations include the possibility
of currency exchange rate fluctuations and revaluation of currencies, the
existence of less publicly available information about foreign issuers,
different accounting, auditing and financial reporting standards, less stringent
securities regulation, non-negotiable brokerage commissions, different tax
provisions, political or social instability, war or expropriation. Moreover,
foreign stock and bond markets generally are not as developed and efficient as
those in the United States and, therefore, the volume and liquidity in those
markets may be less, and the volatility of prices may be greater, than in U.S.
markets. Settlement of transactions on foreign markets may be delayed beyond
what is customary in U.S. markets. These considerations generally are of greater
concern in developing countries.
The value in U.S. dollars of investments quoted or denominated in foreign
currencies will be affected by changes in currency exchange rates. As one way of
managing currency exchange rate risk, International Blue Chip Equities Portfolio
may enter into forward foreign currency exchange contracts, which are agreements
to purchase or sell a designated amount of foreign currencies at a specified
price and date. The Portfolio will usually enter into these contracts to fix the
U.S. dollar value of a security it has agreed to buy or sell. The Portfolio may
also use these contracts to hedge the U.S. dollar value of a security it already
owns, particularly if it expects a decline in the value of the currency in which
the foreign security is quoted or denominated. Although the Portfolio will
attempt to benefit from using forward contracts, the success of its hedging
strategy will depend on the Investment Adviser's ability to predict accurately
the future exchange rate between foreign currencies and the U.S. dollar. The
ability to predict the direction of currency exchange rates involves skills
different from those used in selecting securities. The Portfolio may hold
foreign currency or short-term U.S. or foreign government securities pending
investment in foreign securities.
The Investment Adviser
The Winthrop Corporation ("Winthrop") has been engaged to act as investment
adviser to the Trusts pursuant to Investment Advisory Contracts on behalf of the
Funds. Pursuant to a service agreement effective February 1, 1996 between
Winthrop and Wright, Wright, acting under the general supervision of the
Trustees, furnishes each Fund with investment advice and management services. As
of February 1, 1996, advisory fees are paid directly to Wright. Winthrop
supervises Wright's performance of this function and retains its contractual
obligations under its Investment Advisory Contracts. Winthrop has agreed that
for so long as a Feeder Fund invests its investable assets in a corresponding
Portfolio it will not provide advisory services to the Feeder Funds and will not
impose any advisory fees payable by the Feeder Funds to which it would be
entitled under the respective Investment Advisory Contracts.
Wright has been engaged to act as investment adviser to the Portfolio Trust
pursuant to the Portfolio Investment Advisory Contract and furnishes each
Portfolio with investment advice and management services. The address of both
Winthrop and Wright is 1000 Lafayette Boulevard, Bridgeport, Connecticut. The
Trustees of each Trust are responsible for the general oversight of the conduct
of each Fund's business and the Trustees of the Portfolio Trust are responsible
for the general oversight of each Portfolio's business.
Wright is a leading independent international investment management and
advisory firm which, together with its parent, Winthrop, has more than 30 years'
experience. Its staff of over 125 people includes a highly respected team of
economists, investment experts and research analysts. Wright manages assets for
bank trust departments, corporations, unions, municipalities, eleemosynary
institutions, professional associations, institutional investors, fiduciary
organizations, family trusts and individuals as well as mutual funds. Wright,
along with Disclosure International, Inc., operates one of the world's largest
and most complete databases of financial information on 17,700 domestic and
international corporations. The estate of John Winthrop Wright is the
controlling shareholder of Winthrop. At the end of 1997, Wright managed
approximately $4 billion of assets.
<PAGE>
Under the Investment Advisory Contracts, each Fund that is not a Feeder
Fund (a "non-Feeder Fund") pays Wright a monthly advisory fee calculated at the
annual rates (as a percentage of average daily net assets) set forth in the
table below. Under the Portfolio Investment Advisory Contract, the Portfolios
pay to Wright a monthly advisory fee calculated at the annual rates (as a
percentage of average daily net assets) set forth for the corresponding Funds in
the table below.
The following table also lists each Fund's aggregate net assets at December
31, 1997 and the advisory fee rate paid by the Funds to Winthrop for the fiscal
year ended December 31, 1997.
<TABLE>
<CAPTION>
ANNUAL % ADVISORY FEE RATES Aggregate Fee Rate Paid
Under $100 Mil.to $250 Mil.to $500 Mil.to Over Net Assetsfor the Fiscal Year
$100 Mil. $250 Mil. $500 Mil. $1 Billion $1 Billion at 12/31/97 Ended 12/31/97
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Wright Selected Blue Chip Equities
Fund (WBC)* 0.55% 0.69% 0.67% 0.63% 0.58 $259,410,868 0.63%
Wright Junior Blue Chip Equities
Fund (WJBC)* 0.55% 0.69% 0.67% 0.63% 0.58% 33,489,734 0.55%(1)
Wright Major Blue Chip Equities
Fund (WMBC) 0.45% 0.59% 0.57% 0.53% 0.48% 27,720,746 0.46%(2)
Wright International Blue Chip Equities
Fund (WIBC)* 0.75% 0.79% 0.77% 0.73% 0.68% 257,792,048 0.77%
Wright U.S. Treasury Fund (WUSTB)* 0.40% 0.46% 0.42% 0.38% 0.33% 74,158,057 0.40%
Wright U.S. Treasury Near Term Fund (WNTB)* 0.40% 0.46% 0.42% 0.38% 0.33% 102,564,796 0.40%
Wright Total Return Bond Fund (WTRB) 0.40% 0.46% 0.42% 0.38% 0.33% 80,003,663 0.40%
Wright Current Income Fund (WCIF)* 0.40% 0.46% 0.42% 0.38% 0.33% 98,018,271 0.42%
Wright U.S. Treasury Money Market
Fund (WTMM) 0.35% 0.32% 0.32% 0.30% 0.30% 87,058,776 0.35%(3)
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) To enhance the net income of the Fund, Wright made a reduction of its
advisory fee in the amount of $44,357 or from 0.55% to 0.22%.
(2) To enhance the net income of the Fund, Wright made a reduction of the
advisory fee in the amount of $50,081 or from 0.46% to 0.36%.
(3) To enhance the net income of the Fund, Wright made a reduction of the
advisory fee in the amount of $131,353 or from 0.35% to 0.21%.
* As of May 1, 1997, the annual % advisory fee rates were paid by the
corresponding Portfolio.
Shareholders of the Funds who are also advisory clients of Wright may have
agreed to pay Wright a fee for such advisory services. Wright does not intend to
exclude from the calculation of the investment advisory fees payable to Wright
by such advisory clients the portion of the advisory fee payable by the Funds or
the Portfolios, as the case may be. Accordingly, a client may pay an advisory
fee to Wright in accordance with Wright's customary investment advisory fee
schedule charged to investment advisory clients and at the same time, as a
shareholder in a Fund, bear its share of the advisory fee paid by the Fund or
the Portfolio to Wright as described above.
Pursuant to the Investment Advisory Contracts and the Portfolio Investment
Advisory Contract, Wright also furnishes for the use of each non-Feeder Fund and
Portfolio office space and all necessary office facilities, equipment and
personnel for servicing the investments of each non-Feeder Fund and Portfolio.
Each non-Feeder Fund and Portfolio is responsible for the payment of all
expenses relating to its operations other than those expressly stated to be
payable by Wright under its Investment Advisory Contracts and the Portfolio
Investment Advisory Contract.
Wright places the portfolio security transactions for each non-Feeder Fund
and Portfolio, which in some cases may be effected in block transactions which
include other accounts managed by Wright. Wright provides similar services
directly for bank trust departments. Wright seeks to execute the non-Feeder
Funds' and Portfolios' portfolio security transactions on the most favorable
terms and in the most effective manner possible. Subject to the foregoing,
Wright may consider sales of shares of the Funds or of other investment
companies sponsored by Wright as a factor in the selection of broker/dealer
firms to execute such transactions.
An Investment Committee of senior officers, all of whom are experienced
analysts, exercises disciplined direction and control over all investment
selections, policies and procedures for each non-Feeder Fund and each Portfolio.
The Committee, following highly disciplined buy-and-sell rules, makes all
decisions for the selection, purchase and sale of all securities. The members of
the Committee are as follows:
Peter M. Donovan, CFA, President and Chief Executive Officer of Wright. Mr.
Donovan received a BA Economics, Goddard College and joined Wright from Jones,
Kreeger & Co., Washington, DC in 1966. Mr. Donovan is the president of The
Wright Managed Blue Chip Series Trust, The Wright Managed Income Trust, The
Wright Managed Equity Trust, The Wright EquiFund Equity Trust, Catholic Values
Investment Trust and The Wright Blue Chip Master Portfolio Trust. He is also a
<PAGE>
director of Aetna Master Fund. He is a member of the New York Society of
Security Analysts and the Hartford Society of Financial Analysts.
Judith R. Corchard, Chairman of the Investment Committee, Executive Vice
President - Investment Management of Wright. Ms. Corchard attended the
University of Connecticut and joined Wright in 1960. Ms. Corchard is also a
member of the New York Society of Security Analysts, the Hartford Society of
Financial Analysts, and AIMR. She is a vice president and trustee of The Wright
Managed Income Trust, The Wright Managed Equity Trust, The Wright Managed Blue
Chip Series Trust, The Wright EquiFund Equity Trust, Catholic Values Investment
Trust and The Wright Blue Chip Master Portfolio Trust.
Jatin J. Mehta, CFA, Chief Investment Officer - U.S. Equities of Wright.
Mr. Mehta received a BS Civil Engineering, University of Bombay, India and an
MBA from the University of Bridgeport. Before joining Wright in 1969, Mr. Mehta
was an executive of the Industrial Credit Investment Corporation of India, a
World Bank agency in India for financial assistance to private industry. He is a
member of the New York Society of Security Analysts and the Hartford Society of
Financial Analysts.
Harivadan K. Kapadia, CFA, Senior Vice President - Investment Analysis and
Information of Wright. Mr. Kapadia received a BA (hon.) Economics and Statistics
and MA Economics, University of Baroda, India and an MBA from the University of
Bridgeport. Before joining Wright in 1969, Mr. Kapadia was Assistant Lecturer at
the College of Engineering and Technology in Surat, India and Lecturer, at the
B.J. College of Commerce, VVNagar, India. He has published the textbooks:
"Elements of Statistics," "Statistics," "Descriptive Economics," and "Elements
of Economics." He was appointed Adjunct Professor at the Graduate School of
Business, Fairfield University in 1981. He is a member of the New York Society
of Security Analysts and the Hartford Society of Financial Analysts.
Michael F. Flament, CFA, Senior Vice President - Investment and Economic
Analysis of Wright. Mr. Flament received a BS Mathematics from Fairfield
University; an MA Mathematics from University of Massachusetts and an MBA
Finance from the University of Bridgeport and joined Wright in 1972. He is a
trustee of The Wright Managed Blue Chip Series Trust and a member of the New
York Society of Security Analysts and the Hartford Society of Financial
Analysts.
James P. Fields, CFA, Senior Vice President and Investment Officer of
Wright. Mr. Fields received a B.S. Accounting, Fairfield University and an MBA
Finance from Pace University. He joined Wright in 1982 and is also a member of
the New York Society of Security Analysts.
Amit S. Khandwala, Senior Vice President - International Investments of
Wright. Mr. Khandwala received a BS (Economics, Accounting, International
Business and Computers) from University of Bombay, India, and an MBA
(Investments, Corporate Finance, International Finance & International
Marketing) from the University of Hartford. Mr. Khandwala has taught in the
Executive MBA Program at the University of Hartford Business School and his
research on ADRs has been published in The Journal of Portfolio Management. He
was involved in establishing the Stamford Society of Securities Analysts and is
a member of the New York Society of Security Analysts and the Hartford Society
of Financial Analysts. He joined Wright in 1986.
Charles T. Simko, Jr., Vice President - Investment Research of Wright. Mr.
Simko received a BS in Mathematics from Fairfield University. He joined Wright
in 1985.
Wright is also the investment adviser to the funds in The Wright Managed
Blue Chip Series Trust, The Wright EquiFund Equity Trust, Catholic Values
Investment Trust, and the Portfolio Trust.
The Administrator
Each Trust and the Portfolio Trust engages Eaton Vance Management as its
administrator under separate Administration Agreements dated February 1, 1998.
Under the Administration Agreements, Eaton Vance is responsible for managing the
legal and business affairs of each Fund and Portfolio, subject to the
supervision of the Trustees of the respective Trust or the Portfolio Trust.
Eaton Vance's services include recordkeeping, preparation and filing of
documents required to comply with federal and state securities laws, supervising
the activities of the custodian and transfer agent, providing assistance in
connection with the Trustees' and shareholders' meetings and other
administrative services necessary to conduct each Fund's or Portfolio's
business, as the case may be. Eaton Vance will not provide any investment
management or advisory services to the Funds or Portfolios. For its services
under the Trust's and the Portfolio's Administration Agreements, Eaton Vance
receives monthly administration fees
<PAGE>
at the annual rates (as a percentage of average daily net assets) as follows:
ANNUAL % ADMINISTRATION FEE RATES
PAID BY THE TRUSTS
FUND CLASS
Under Over Under Over
$100 Mil. $100 Mil. $100 Mil. $100 Mil.
- ------------------------------------------------------------------------------
The Wright Managed Equity Trust
Wright Selected Blue Chip
Equities Fund 0.02% 0.01% - -
Wright Junior Blue Chip
Equities Fund 0.02% 0.01% - -
Wright International Blue Chip
Equities Fund 0.02% 0.01% -
Wright Major Blue Chip
Equities Fund 0.20% 0.05% 0.02% 0.01%
FUND
Under Over
$100 Mil. $100 Mil.
- -------------------------------------------------------------------------------
The Wright Managed Income Trust
Wright U.S. Treasury Fund 0.02% 0.01%
Wright U.S. Treasury Near Term Fund 0.02% 0.01%
Wright Current Income Fund 0.02% 0.01%
Wright Total Return Bond Fund 0.10% 0.04%
Wright U.S. Treasury Money Market Fund 0.07% 0.03%
Under Over
$100 Mil. $100 Mil.
- -------------------------------------------------------------------------------
The Wright Blue Chip Master Portfolio Trust
Selected Blue Chip Equities Portfolio 0.20% 0.05%
Junior Blue Chip Equities Portfolio 0.20% 0.05%
International Blue Chip Equities Portfolio 0.20% 0.05%
U.S. Treasury Portfolio 0.10% 0.04%
U.S. Treasury Near Term Portfolio 0.10% 0.04%
Current Income Portfolio 0.10% 0.04%
- -------------------------------------------------------------------------------
Up until February 1, 1998, pursuant to the Portfolio Trust's prior
Administration Agreement, Eaton Vance did not receive any compensation for the
services to the Portfolios.
Eaton Vance, its affiliates and its predecessor companies have been
primarily engaged in managing assets of individuals and institutional clients
since 1924 and managing, administering and marketing mutual funds since 1931.
Total assets under management are approximately $25 billion. Eaton Vance is a
wholly-owned subsidiary of Eaton Vance Corp., ("EVC"), a publicly-held holding
company.
Like most mutual funds, the Funds and the Portfolios rely on computers in
conducting daily business and processing information. There is a concern that on
January 1, 2000 some computer programs will be unable to recognize the new year
and as a consequence computer malfunctions will occur. The Adviser and the
Administrator are taking steps that they believe are reasonably designed to
address this potential problem and to obtain satisfactory assurance from other
service providers to the Funds and Portfolios that they are also also taking
steps to address the issue. There can, however, be no assurance that these steps
will be sufficient to avoid any adverse impact on the Funds, the Portfolios or
shareholders.
Share Purchase Alternatives
Each Trust continuously offers two classes of shares of the Funds (other
than Wright Total Return Bond Fund and Wright U.S. Treasury Money Market Fund)
designated as Standard Shares and Institutional Shares. As of May 1, 1997, all
shares of the Funds (except WTMM) outstanding prior to that date have been
designated as Standard Shares. Standard Shares are offered with no front-end or
deferred sales charge and require a minimum initial investment of $1,000.
Standard Shares are subject to distribution fees at a rate of up to 0.25% of the
Fund's average daily net assets attributable to Standard Shares and may be
subject to service fees at a rate of up to 0.25% of such assets. Institutional
Shares are offered with no front-end or deferred sales charge and require a
minimum initial investment of $1,000,000. This minimum may be waived for
purchases by bank trust departments and qualified retirement plans.
Institutional Shares may be subject to service fees at a rate of up to 0.25% of
the Fund's average daily net assets attributable to Institutional Shares.
Distribution Expenses - Standard Shares
In addition to the fees and expenses payable by each Fund or Portfolio in
accordance with the Investment Advisory Contracts and Administration Agreements,
each Fund (except
<PAGE>
Wright U.S. Treasury Money Market Fund) pays for distribution expenses of
the Standard Shares pursuant to a distribution plan (the "Standard Shares Plan")
as adopted by each Trust and designed to meet the requirements of Rule 12b-1
under the Investment Company Act of 1940 (the "1940 Act") and Section 2830 of
the Conduct Rules of the National Association of Securities Dealers, Inc. (the
"NASD"). The Funds do not pay distribution expenses with respect to the
Institutional Shares.
The Standard Shares Plan provides that monies may be spent by a Fund on any
activities primarily intended to result in the sale of each Fund's Standard
Shares, including, but not limited to, compensation paid to and expenses
incurred by officers, Trustees, employees or sales representatives of the
respective Trust, including telephone expenses, the printing of prospectuses and
reports for other than existing shareholders, preparation and distribution of
sales literature, and advertising of any type. The expenses covered by the
Standard Shares Plan may include payments to any separate distributors under
agreement with the respective Trust for activities primarily intended to result
in the sale of a Fund's Standard Shares. Under the Standard Shares Plans, it is
intended that each Fund will pay on an annual basis up to 0.25% of its average
daily net assets attributable to Standard Shares to Wright Investors' Service
Distributors, Inc. ("WISDI" or the "Principal Underwriter"), a wholly-owned
subsidiary of Winthrop.
Each Trust has entered into a Distribution Contract with WISDI. WTMM does
not pay WISDI any compensation under the Distribution Contract.
The Principal Underwriter may use the distribution fee for its expenses of
distributing each Fund's Standard Shares, including allocable overhead expenses.
Distribution expenses not specifically attributable to a particular Fund's
Standard Shares are allocated among the Funds based on the amount of sales of
each Fund's Standard Shares resulting from the Principal Underwriter's
distribution efforts and expenditures. If the distribution fee exceeds the
Principal Underwriter's expenses, the Principal Underwriter may realize a profit
from these arrangements.
For the period from May 1, 1997 to December 31, 1997, each Fund in the
Equity Trust made distribution expense payments (as an annualized percentage of
average daily net assets) pursuant to the Standard Shares Plan which permits
payments as follows: WBC (0.25%), WJBC (0.25%), WMBC (0.25%) and WIBC (0.25%).
For the four months ended April 30, 1997, each Fund in the Equity Trust made
distribution expense payments (as an annualized percentage of average daily net
assets) pursuant to the plan then in effect which permitted payments as follows:
WBC (0.20%), WJBC (0.20%), WMBC (0.20%) and WIBC (0.20%). To enhance the net
income of the WJBC and WMBC Funds, the Principal Underwriter reduced its fee by
$34,946 and $41,100, respectively, and the payments were: WJBC (0.04%) and WMBC
(0.08%).
For the period from May 1, 1997 to December 31, 1997, each Fund in the
Income Trust, except Wright U.S. Treasury Money Market Fund, made distribution
expense payments (as an annualized percentage of average daily net assets)
pursuant to the Standard Shares Plan which permits payments as follows: WUSTB
(0.25%), WNTB (0.25%), WTRB (0.25%) and WCIF (0.25%). For the four months ended
April 30, 1997, each Fund in the Income Trust, except Wright U.S. Treasury Money
Market Fund, made distribution expense payments (as an annualized percentage of
average daily net assets) pursuant to the plan then in effect which permitted
payments as follows: WUSTB (0.20%); WNTB (0.20%); WTRB (0.20%) and WCIF (0.20%).
To enhance the net income of the WNTB, WUSTB and WCIF Funds, the Principal
Underwriter reduced its fee by $19,330, $9,263 and $45,629, respectively, and
the payments were: WNTB (0.22%), WUSTB (0.23%) and WCIF (0.19%).
Service Plans
Each Trust has adopted a service plan on behalf of each Fund (except Wright
U.S. Treasury Money Market Fund) (the "Service Plans" ) which allows each Fund
to reimburse WISDI for payments to intermediaries for providing account
administration and personal and account maintenance services to their customers
who are beneficial owners of shares. The services provided by these
intermediaries may include acting, directly or through an agent, as the sole
shareholder of record, maintaining account records for customers, processing
orders to purchase, redeem or exchange shares for customers, responding to
inquiries from prospective and existing shareholders and assisting customers
with investment procedures. The amount of the service fee payable under the
Service Plan with respect to each class of shares of each Fund may not exceed
0.25% annually of the average daily net assets attributable to the respective
classes.
How the Funds Value their Shares
The shares of each Fund, except Wright U.S. Treasury Money Market Fund, are
valued once on each day the New
<PAGE>
York Stock Exchange (the "NYSE" or "Exchange") is open as of the close of
regular trading on the Exchange normally 4:00 p.m. New York time. The net asset
value per share of each class of each Fund is determined by Investors Bank &
Trust Company ("IBT"), the Funds' custodian (as agent for the Funds) in the
manner authorized by the Trustees. Such determination is accomplished by
dividing the number of outstanding shares of each class of the Fund into the net
assets attributable to that class. The net asset value of each class can differ.
Because each Feeder Fund invests its assets in an interest in its corresponding
Portfolio, the Fund's net asset value will reflect the value of its interest in
the Portfolio (which, in turn, reflects the underlying value of the Portfolio's
assets and liabilities). Each Portfolio's net asset value is also determined as
of the close of regular trading on the Exchange by IBT (as custodian and agent
for the Portfolio) based on market or fair value in the manner described below.
Net asset value is computed by subtracting the liabilities of a Portfolio from
the value of its total assets.
Securities listed on securities exchanges or in the NASDAQ National Market
are valued at closing sale prices. Unlisted or listed securities, for which
closing sale prices are not available, are valued at the mean between latest bid
and asked prices. Fixed income securities for which market quotations are
readily available are valued on the basis of valuations supplied by a pricing
service. Securities for which market quotations are unavailable, restricted
securities, and other assets are valued at their fair value as determined in
good faith under procedures established by the Portfolio Trust Trustees. (These
valuation methods apply to debt and fixed-income as well as to equity
securities.) Short-term obligations maturing in 60 days or less are valued at
amortized cost, which approximates market value.
The net asset value per share of Wright U.S. Treasury Money Market Fund is
computed three times on each day the Exchange is open, at noon, at 3:00 p.m. and
as of the close of regular trading on the Exchange o normally 4:00 p.m. New York
time. The net asset value is determined by the Fund's custodian (as agent for
the Fund) in the manner authorized by the Trustees. The Trustees have determined
that it is in the best interests of the Fund and its shareholders to maintain a
stable price of $1.00 per share by valuing portfolio securities by the amortized
cost method in accordance with a rule of the Securities and Exchange Commission.
Portfolio securities traded on more than one United States national
securities exchange or foreign securities exchange are valued by International
Blue Chip Portfolio's custodian at the last sale price on the business day as of
which such value is being determined at the close of the exchange representing
the principal market for such securities, unless those prices are deemed by
Wright to be not representative of market values. Securities which cannot be
valued at such prices, will be valued by Wright at fair value in accordance with
procedures adopted by the Portfolio Trust Trustees. Foreign currencies, options
on foreign currencies and forward foreign currency contracts will be valued at
their last sales price as determined by published quotations or as supplied by
banks that deal in such instruments. The value of all assets and liabilities
expressed in foreign currencies will be converted into U.S. dollar value at the
mean between the buying and selling rates of such currencies against U.S.
dollars last quoted by any major bank. If such quotations are not available, the
rate of exchange will be determined in good faith by or under procedures
established by the Portfolio Trust Trustees.
Trading in securities on European and Far Eastern securities exchanges and
over-the-counter markets is normally completed well before the close of business
on each business day in New York (i.e., a day on which the NYSE is open for
trading). In addition, European or Far Eastern securities trading generally or
in a particular country or countries may not take place on all business days in
New York. Furthermore, trading takes place in Japanese markets on certain
Saturdays and in various foreign markets on days which are not business days in
New York and on which WIBC Fund's net asset value is not calculated. Such
calculation does not take place contemporaneously with the determination of the
prices of the majority of the portfolio securities used in such calculation.
Events affecting the values of portfolio securities that occur between the time
their prices are determined and the close of the NYSE will not be reflected in
WIBC Fund's calculation of net asset value unless Wright deems that the
particular event would materially affect net asset value, in which case an
adjustment will be made.
How to Buy Shares
Shares of each Fund are sold without an initial sales charge at the net
asset value next determined after the receipt of a purchase order. Shares of
Wright U.S. Treasury Money Market Fund ("Money Market Shares") purchased before
3:00 p.m. will receive the Fund's dividends for that day. Shares purchased
between 3:00 p.m. and 4:00 p.m. will start to earn dividends the next business
day.
<PAGE>
Shares of each Fund may be purchased or redeemed through an investment
dealer, bank or other institution ("Authorized Dealer"). Charges may be imposed
by the institution for its services. Any such charges could constitute a
material portion of a smaller account. Shares may be purchased or redeemed
directly from or with each Fund without imposition of any charges other than
those described in this Prospectus.
Authorized Dealers must communicate an investor's order to the Principal
Underwriter by a specific time each day to receive that day's public offering
price per share. It is the Authorized Dealers' responsibility to transmit orders
promptly to the Principal Underwriter. Each Trust has approved the acceptance of
purchase and redemption orders as of the time of their receipt by certain
Authorized Dealers (or their designated intermediaries).
Transactions in money market instruments normally require immediate
settlement in Federal Funds. Accordingly, purchase orders for Wright U.S.
Treasury Money Market Fund will be executed at the net asset value next
determined (see "How the Funds Value their Shares") after their receipt by the
Fund only if the Fund has received payment in cash or in Federal Funds. If
remitted in other than the foregoing manner, such as by money order or personal
check, purchase orders will be executed as of the close of business on the
second Boston business day after receipt. Information on how to procure a
Federal Reserve draft or to transmit Federal Funds by wire is available at
banks. A bank may charge for these services.
Minimum Initial Investment
Standard Shares and Money Market Shares: $1,000
Institutional Shares: $3,000,000
Minimum Subsequent Investment
Standard Shares and Money Market Shares: None
Institutional Shares: None
Waiver of Minimum Initial Investment
Waived for bank trust departments and investments in qualified retirement
plans for both Institutional and Standard Share classes and Money Market
Shares.
Standard and Money Market Share minimum also waived for the Automatic
Investment Program.
For Standard Shares and Money Market Shares, the minimum initial investment
will be reduced to $500 with respect to shares purchased by or for an
investor making an investment through an investment adviser, financial
planner, broker, or other intermediary that charges a fee for its services
and has entered into an agreement with the Trust or its Principal
Underwriter.
Purchasing By Mail - Initial Purchase
Obtain an account application form from WISDI, then complete and sign the
form.
Indicate on the account application form the class of shares being purchased.
If no class of shares is named, the application form will be returned and the
money will not be invested.
Mail the form with a check, Federal Reserve draft or other negotiable bank
draft, drawn on a U.S. bank and payable in U.S. dollars to the order of (Name
of Fund), to First Data Investor Services Group (the "Transfer Agent") at the
following address:
First Data Investor Services Group
(Name of Fund; Name of Class)
P.O. Box 5156
Westborough, MA 01581-9698
Purchasing By Mail - Subsequent Purchases
May be made at any time by check, Federal Reserve draft, or other negotiable
bank draft, drawn on a U.S. bank and payable in U.S. dollars to the order of
(Name of Fund), and mailed to the Transfer Agent at the above address.
If the purchase is to be credited to a sub-account, identify the sub-account,
the sub-account number and, unless otherwise agreed, the name of the
sub-account.
Purchasing By Wire - Initial Purchase
Telephone the Trusts at (800) 225-6265, ext. 7750, to advise of the action
and to obtain an account number.
Obtain an account application form from WISDI, then complete, sign and mail
the form to the Transfer Agent at the above address. Indicate on the account
application form the class of shares being purchased. If no class of shares
is named, the application form will be returned and the money will not be
invested.
Instruct your bank to wire immediately available funds to:
Boston Safe Deposit and Trust Co.
One Boston Place
Boston, Massachusetts
ABA: 011001234
Account: 081345
Further Credit: (Name of Fund; Name of Class)
(Include your Fund account number)
Purchasing By Wire - Subsequent Purchases
Telephone the Trusts immediately at (800) 225-6265, ext. 7750, with each
transmission.
Repeat the wire procedure described above.
<PAGE>
Automatic Investment Program
(Standard Class and Money Market Shares only)
Investments of $50 or more may be made each month or quarter in automatic
withdrawals from your bank account.
$1,000 minimum initial investment and $500 minimum account requirements are
waived.
Purchase through Exchange of Securities
Investors wishing to purchase shares of a Fund other than WTMM through an
exchange of portfolio securities should contact WISDI to determine the
acceptability of the securities and make the proper arrangements. Shares of a
Fund may be purchased, in whole or in part, by delivering to the Fund's
custodian securities that meet the investment objective and policies of the
Fund, have readily ascertainable market prices and quotations and which are
otherwise acceptable to the Investment Adviser and the Fund. The Trust will only
accept securities in exchange for shares of the Funds for investment purposes
and not as agent for the shareholders with a view to a resale of such
securities. The Investment Adviser will also require that equity securities
presented for exchange be listed on the New York Stock Exchange, American Stock
Exchange or NASDAQ. The Investment Adviser, WISDI and the Funds reserve the
right to reject all or any part of the securities offered in exchange for shares
of a Fund.
An investor who wishes to make an exchange should furnish to WISDI a list
with a full and exact description of all of the securities which he or she
proposes to deliver. WISDI or the Investment Adviser will specify those
securities which the Fund is prepared to accept and will provide the investor
with the necessary forms to be completed and signed by the investor. The
investor should then send the securities, in proper form for transfer, with the
necessary forms to the Fund's custodian and certify that there are no legal or
contractual restrictions on the free transfer and sale of the securities.
Exchanged securities will be valued at their fair market value as of the date
that the securities in proper form for transfer and the accompanying purchase
order are both received by the Trust, using the procedures for valuing portfolio
securities as described under "How the Funds Value their Shares." However, if
the Exchange or appropriate foreign stock exchange is not open for unrestricted
trading on that date, the securities will be valued on the next day on which the
Exchange is so open. The net asset value used for purposes of pricing shares
sold under the exchange program will be the net asset value next determined
following the receipt of both the securities offered in exchange and the
accompanying purchase order. Securities to be exchanged must have a minimum
aggregate value of $5,000. An exchange of securities is a taxable transaction
which may result in realization of a gain or loss for federal and state income
tax purposes.
Purchases not acceptable
Each Trust reserves the right to reject any order for the purchase of its
shares or to limit or suspend, without prior notice, the offering of its shares.
The Trusts believe that short-term investments, such as those made by
"market-timers" adversely affect the Fund and its shareholders. Therefore, the
Trust generally will not honor purchase requests from shareholders who identify
themselves or are identified by the Trusts as market-timers or short-term
traders. The Trusts identify as market-timers or short-term traders those
investors who make frequent and repeated purchase-redemption transactions within
a short period retaining Fund shares for very short holding periods (often less
than a month).
Account Statements and Confirmations
Account statements indicating total shares of each class of the Fund owned
in the account or each sub-account will be mailed to investors quarterly.
Confirmations will be issued at the time of each purchase or redemption. The
issuance of shares will be recorded on the books of the affected Trust. The
Trusts do not issue share certificates.
Distributions by the Funds
Any net capital gains realized from the sale of securities or other
transactions in a Fund's or Portfolio's portfolio (reduced by any available
capital loss carry forwards from prior years) will be paid at least annually,
shortly before or after the close of the Fund's fiscal year. WBC, WJBC and WMBC
intend to pay dividends from net investment income quarterly. WIBC intends to
pay dividends annually. WUSTB, WNTB, WTRB, WCIF and WTMM will declare any net
investment income as dividends daily and will pay them monthly. Net investment
income will include interest accrued and discount earned, if any, less any
accrued estimated expenses on the assets of the Funds. Unless shareholders
instruct otherwise, all distributions and dividends will be automatically
invested in additional shares of the same class of the Fund. Equity Fund
distributions will be reinvested as of the reinvestment date. Income Fund and
<PAGE>
WTMM distributions will be reinvested on the payment date. Alternatively,
shareholders may reinvest capital gain distributions and direct that dividends
be paid in cash or direct that both dividends and capital gain distributions be
paid in cash.
Taxes
Each Fund is treated as a separate entity for federal income tax purposes
under the Internal Revenue Code of 1986, as amended (the "Code"). Each Fund has
qualified and elected to be treated as a regulated investment company for
federal income tax purposes and intends to continue to qualify as such. In order
to so qualify, each Fund must meet certain requirements with respect to sources
of income, diversification of assets, and distributions to shareholders. The
Funds do not pay federal income or excise taxes to the extent that they
distribute to their shareholders all of their net investment income and net
realized capital gains in accordance with the timing requirements of the Code.
In addition, none of the Funds will be subject to income or corporate excise or
franchise taxes in Massachusetts as long as it qualifies as a regulated
investment company under the Code.
For federal income tax purposes, a shareholder's distributions from a
Fund's of net investment income, any excess of its net short-term capital gain
over its net long-term capital loss and certain net realized foreign currency
gains are taxable to shareholders as ordinary income, whether received in cash
or reinvested in additional shares.
A portion of distributions of net investment income made by WBC, WJBC and
WMBC which are derived from dividends may qualify for the dividends-received
deduction for corporations, subject to certain requirements under the Code.
Since it is anticipated that virtually all of the ordinary income from each
of the Income Funds will be derived from interest income rather than dividends,
it is unlikely that any portion of the dividends paid by any of the Income Funds
will be eligible for the dividends received deduction for corporations.
Distributions from any excess of each Fund's net long-term capital gain
over its net short-term capital loss that the Fund designates as "capital gain
dividends" are taxable as long-term capital gains whether received in cash or
reinvested in additional shares, regardless of how long the shareholder has held
the Fund shares. As a result of tax legislation enacted on August 5,1997,
long-term capital gains are taxable at different rates for individual
(noncorporate) investors (generally 28% or 20% maximum rates,but other rates may
also apply in particular cases) depending upon the holding period of the asset
that produced the gains, the investor's tax bracket, and other relevant factors.
The dividends received deduction does not apply to distributions of such gains.
Distributions on Equity Fund shares shortly after their purchase, although
they may be attributable to taxable income and/or capital gains that had been
realized but not distributed at the time of purchase and therefore may be in
effect a return of a portion of the purchase price, are generally subject to
federal income tax.
Redemptions (including exchanges) of shares of a Fund are taxable
transactions and may in particular cases be subject to wash sale or other
special tax rules. However, redemptions of the shares of WTMM generally should
not result in the recognition of a gain or loss, provided that it has maintained
a constant net asset value.
International Blue Chip Portfolio may be subject to foreign withholding or
other foreign taxes with respect to income (possibly including, in some cases,
capital gains) derived from securities of foreign issuers. These taxes may be
reduced or eliminated under the terms of an applicable U.S. income tax treaty in
some cases. In any taxable year in which more than 50% of the value of WIBC's
assets (including its proportionate share of International Blue Chip Portfolio's
assets) at the close of such taxable year consists of stocks or securities of
foreign corporations, the Fund may elect to pass through to its shareholders its
share of the foreign income or other qualified foreign taxes paid by the
Portfolio. In such case, shareholders will be required to include in gross
income their pro rata portion of such taxes and may be eligible to claim a
credit (or if they itemize their deductions, a deduction) with respect to such
taxes, subject to certain conditions and limitations under the Code.
Dividends and other distributions and the value of Fund shares may be
subject to state, local or other taxes. A state income (and possibly local
income and/or intangible property) tax exemption is generally available to the
extent a Fund's distributions are derived from interest on (or, in the case of
intangible property taxes, the value of its assets is attributable to) certain
U.S. Government obligations, provided in some states that certain thresholds for
holdings of such obligations and/or reporting requirements are satisfied. A
report will be sent to shareholders annually with the percentages of
distributions which are derived from such interest income.
<PAGE>
Shareholders should consult their tax advisers regarding the applicable
requirements in their particular states, including the effect, if any, of a
Feeder Fund's indirect ownership (through its corresponding Portfolio) of any
such obligations, and any other federal, state, local or foreign tax
consequences of ownership of shares of, and receipt of distributions from, a
Fund in their particular circumstances.
Annually, shareholders of each Fund that are not exempt from information
reporting requirements will receive information on Form 1099 regarding the prior
calendar year's distributions and, except in the case of WTMM, redemptions
(including exchanges). Dividends declared by a Fund in October, November or
December to shareholders of record as of a date in such a month and paid the
following January will be treated for federal income tax purposes as having been
received by shareholders on December 31 of the year in which they are declared.
Under Section 3406 of the Code, individuals and other nonexempt
shareholders who have not provided to a Fund their correct taxpayer
identification numbers and certain certifications required by the IRS will be
subject to backup withholding at the rate of 31% on taxable distributions made
by the Funds and, except in the case of WTMM, on proceeds of redemptions
(including exchanges) of shares. In addition, a Fund may be required to impose
backup withholding if it is notified by the IRS or a broker that the
shareholder's taxpayer identification number is incorrect or that backup
withholding applies because of under-reporting of interest or dividend income.
If such withholding is applicable, such distributions and proceeds will be
reduced by the amount of tax required to be withheld.
Shareholders who are not United States persons should also consult their
tax advisers as to the potential application of certain U.S. taxes, including
U.S. withholding tax at the rate of 30% (or a lower treaty rate) on amounts
treated as ordinary income distributions to them, and of foreign taxes to their
investment in the Funds.
How to Exchange Shares
Shares of each Fund (except Wright U.S. Treasury Money Market Fund) may be
exchanged for shares of the same class of any other Funds offered in this
Prospectus. Standard Shares of the Funds may also be exchanged for shares of The
Wright EquiFund Equity Trust. Provided the applicable minimum investment
requirement is met, shares of Wright U.S. Treasury Money Market Fund may be
exchanged for shares of any other of the Funds in this Prospectus and for shares
of the Wright EquiFund Equity Trust. All exchanges are made at the net asset
values of the funds at the time of the exchange without the imposition of
additional charges.
The exchange privilege is available only in states where shares of the
other fund may be legally sold. Each exchange is subject to a minimum initial
investment of $1,000 in each fund. The prospectus of each fund describes its
investment objectives and policies and shareholders should consider these
objectives and policies carefully before requesting an exchange.
Shareholders purchasing shares from an Authorized Dealer may effect
exchanges between the above funds through their Authorized Dealer who will
transmit information regarding the requested exchanges to the Transfer Agent.
The Transfer Agent makes exchanges at the next determined net asset value
after receiving a request in writing mailed to the address provided under "How
to Buy Shares."
Telephone exchanges are also accepted if the exchange involves shares
valued at less than $50,000 and on deposit with the Transfer Agent. To effect
such exchanges, call the Transfer Agent at (800) 555-0644 (this is a recorded
line), Monday through Friday, 9:00 a.m. to 4:00 p.m. (Eastern Time). All such
telephone exchanges must be registered in the same name(s) and with the same
address and social security or other taxpayer identification number as are
registered with the fund from which the exchange is being made. Neither the
Trusts, the Principal Underwriter nor the Transfer Agent will be responsible for
the authenticity of exchange instructions received by telephone, provided that
reasonable procedures have been followed to confirm that instructions
communicated are genuine. Telephone instructions will be tape recorded. In times
of drastic economic or market changes, a telephone exchange may be difficult to
implement. When calling to make a telephone exchange, shareholders should have
their account number and social security or other taxpayer identification
numbers.
Generally, shareholders will be limited to four Telephone Exchange
round-trips during each year following the initial investment and a Fund may
refuse requests for Telephone Exchanges in excess of four round-trips (a
round-trip being the exchange out of the Fund into another Wright Fund, and then
back to the Fund). The Trusts believe that use
<PAGE>
of the Exchange Privilege by investors utilizing market-timing strategies
adversely affects the Fund. Therefore, the Trusts generally will not honor
requests for exchanges, including Telephone Exchanges, by shareholders who
identify themselves or are identified by the Trusts as "market-timers." The
Trusts identify as market-timers on its account records those investors who
repeatedly make exchanges within a short period (even if less than four
round-trips per year) while retaining Fund shares for very short holding periods
(often less than a month). The Trusts do not automatically redeem shares that
are the subject of a rejected exchange request. Such shares will only be
redeemed if the Trusts are specifically authorized to do so by the shareholder.
Additional documentation may be required for exchange requests if shares
are registered in the name of a corporation, partnership or fiduciary. Any
exchange request may be rejected by a Fund or the Principal Underwriter at its
discretion. The exchange privilege may be changed or discontinued without
penalty at any time. Shareholders will be given sixty (60) days' notice prior to
any termination or material amendment of the exchange privilege. Contact the
Transfer Agent for additional information concerning the exchange privilege.
Shareholders should be aware that for federal and state income tax
purposes, an exchange is a taxable transaction, although no gain or loss will
generally result from an exchange out of WTMM if it maintains a constant net
asset value.
How to Redeem or Sell Shares
Shares of the Funds will be redeemed at the next determined net asset value
after receipt of a redemption request in good order. However, if the shares to
be redeemed were purchased by check, the Fund may delay payment of redemption
proceeds until the check has been collected which, depending upon the location
of the issuing bank, could take up to 15 days. A redemption of shares is a
taxable transaction, although no gain or loss will generally result from a
redemption of shares of WTMM if it maintains a constant net asset value.
Shareholders who purchased Fund shares through Authorized Dealers may
redeem shares through such Dealers. The value of such shares is based upon the
net asset value calculated after the order is deemed to be received by the Trust
or the Transfer Agent as the Trust's agent.
Shares may also be redeemed as follows:
By Telephone
All shareholders are eligible unless otherwise indicated on account
application.
o Shareholders may telephone the Transfer Agent if the redemption is
less than $50,000. Telephone: (800)555-0644 between 9:00 a.m. and
4:00 p.m. Eastern time.
o If the redemption amount exceeds $50,000, telephone the Funds at
(800) 225-6265, ext. 7750 between 8:30 a.m. and 4:00 p.m. Eastern time.
o Redemptions requested in good order before 4:00 p.m. Eastern time will be
made at that day's net asset value.
o Redemptions requested after 4:00 p.m. Eastern time will be made at the
net asset value determined for the next business day.
o Redemptions requested before 3:00 p.m. for shares of WTMM Fund with
wire transfer instructions will be wired that day without the payment
of that day's dividend. Redemptions requested after 3:00 p.m. will
receive the daily dividend but will be wired the next day.
o The Fund and the Transfer Agent employ the following procedures to
confirm that instructions received by telephone are genuine. The
shareholder's name, account number, shareholder identifying number
applicable to the account and other relevant information may be
requested. Telephone instructions are recorded.
o If reasonable procedures, such as those described above, are not
followed, the Fund may be liable for any loss due to unauthorized or
fraudulent telephone instructions. In all other cases, neither the Fund
nor the Transfer Agent will be liable for any loss or expense for acting
upon telephone instructions made according to the telephone transaction
procedures described above.
o During times of economic turmoil or market volatility or as a result of
severe weather or a natural disaster, it may be difficult to contact the
Fund by telephone to institute a redemption. You should contact the Fund
in writing if you are unable to reach the Fund by telephone.
o THE FUND MAY TERMINATE OR MODIFY THE TELEPHONE REDEMPTION PRIVILEGE AT
ANY TIME WITH OR WITHOUT NOTICE TO SHAREHOLDERS.
By Mail
o Mail the request with a stock power to the following address:
First Data Investor Services Group
(Name of Fund; Name of Class)
P.O. Box 5156
Westborough, Massachusetts 01581-9698
o Requests and stock powers must:
(i) be endorsed by the record owner(s) exactly as the shares are
registered; and
(ii) have signatures guaranteed (a) by a member of either the Securities
Transfer Association's STAMP program or the NYSE's Medallion Signature
Program, or (b) by certain banks, savings and loans, credit unions,
securities dealers, securities exchanges, clearing agencies or registered
securities associations that are acceptable to the Transfer Agent.
o Additional documents may be required, such as when shares are registered
in the name of a business entity or fiduciary.
o If you hold both Standard and Institutional Shares and do not indicate
which class is to be redeemed, Institutional Shares will be redeemed.
Payment of Proceeds
o Normally, payment will be made within one business day after receipt of
the redemption request in good order.
o Payment will be made by check to the address of record or by wire
transfer if indicated in the account application.
o Trust departments may redeem and deposit proceeds in accounts of their
clients, as specified in instructions given to the applicable Fund at the
time of initial purchase.
Minimum Account Balances
o Each Fund reserves the right to fully redeem any accounts which, due to
redemption or transfer, contain less than the following amounts:
Standard Share and
Money Market Share accounts: $500
Institutional Share accounts: $500,000
o A Fund will not redeem accounts that fall below the minimum amounts due
solely to a reduction in net asset value of the Fund's shares.
o Before any such redemption, notice will be sent to the shareholder and
the shareholder will have 60 days from the notice date to make additional
investments to meet the required minimum.
o These minimum account balance requirements will be waived when the
minimum initial investment requirements are waived.
Each Fund reserves the right to suspend the right of redemption or postpone
the payment of redemption proceeds to the extent permitted by the Securities and
Exchange Commission.
Although each Fund normally intends to redeem shares in cash, each Fund
reserves the right to deliver the proceeds of redemptions in the form of
portfolio securities if deemed advisable by the Trustees. The value of any such
portfolio securities distributed will be determined in the manner described
under "How the Fund Values its Shares." If portfolio securities were distributed
in lieu of cash, the shareholder would normally incur transaction costs upon the
disposition of any such securities.
Performance Information
From time to time, a Fund may publish its class's yield and/or average
annual total return in advertisements and communications to shareholders. The
current yield for all classes of each Fund (other than Wright U.S. Treasury
Money Market Fund) will be calculated by dividing the net investment income per
share during a recent 30-day period by the maximum offering price per share (net
asset value) of the class on the last day of the period. Each class's average
annual total return is determined by computing the annual percentage change in
value of $1,000 invested at the maximum public offering price (net asset value)
for specified periods ending with the most recent calendar quarter, assuming
reinvestment of all distributions.
The yield of Wright U.S. Treasury Money Market Fund refers to the net
income generated by an investment in the Fund over a specified seven-day period.
This income is then annualized. That is, the amount of income generated by the
<PAGE>
investment during that week is assumed to be generated each week over a 52-week
period and is shown as a percentage of the investment. The effective yield is
expressed similarly but, when annualized, the income earned by an investment in
the Fund is assumed to be reinvested. The effective yield will be slightly
higher than the yield because of the compounding effect of this assumed
reinvestment. Yield and effective yield for the Fund will vary based on changes
in market conditions, the level of interest rates and the level of the Fund's
expenses. From time to time, quotations of the yield and effective yield may be
included in advertisements and communications to shareholders.
The investment results of each class in a Fund will fluctuate over time and
the performance of the classes will differ because the classes bear different
expenses. Any presentation of current yield, effective yield or total return for
any prior period should not be considered as a representation of what an
investment may earn or what an investor's yield, effective yield or total return
may be in any future period. If the expenses of a Fund were reduced by Wright,
WISDI or Eaton Vance, a class's performance would be higher.
Other Information
The Trusts are business trusts established under Massachusetts law and are
open-end management investment companies. The Wright Managed Income Trust was
established pursuant to a Declaration of Trust dated February 17, 1983, as
amended and restated on April 28, 1997. The Wright Managed Equity Trust was
established pursuant to a Declaration of Trust dated June 17, 1982, as amended
and restated on April 28, 1997.
The Trusts reserve the right to create and issue multiple series of shares
which are separately managed and have different investment objectives. The
Trustees have authorized the issuance of two classes of each Fund (except WTMM
and WTRB, each of which offers a single class of shares), designated as the
Standard Shares and the Institutional Shares. The shares of each class represent
an interest in the same portfolio of investments of a Fund. Each class has equal
rights as to voting, redemption, dividends and liquidation. However, each class
bears different distribution fees and other expenses. Also, each class of
shareholders has exclusive voting rights with respect to its distribution plans,
if any.
The Trusts are not required and do not intend to hold annual meetings of
shareholders, although special meetings may be held for such purposes as
electing or removing Trustees, changing fundamental policies or approving a
management contract. Each Trust, under certain circumstances, will assist in
shareholder communications with other Trust shareholders.
Each Portfolio is organized as a series of the Portfolio Trust under the
laws of the State of New York. Each Portfolio intends to be treated as a
separate partnership for federal tax purposes. The Portfolio Trust, as well as
each Trust, intend to comply with all applicable federal and state securities
laws.
The Trustees of each Trust have considered the advantages and disadvantages
of investing the assets of each Feeder Fund in its corresponding Portfolio, as
well as the advantages and disadvantages of the two-tier format. The Trustees
believe that the structure offers opportunities for substantial growth in the
assets of the Portfolios, affords the potential for economies of scale for each
Feeder Fund (at least when the assets of its corresponding Portfolio exceed $500
million) and may over time result in lower expenses for a Feeder Fund.
In addition to selling an interest to its corresponding Feeder Fund, a
Portfolio may sell interests to other affiliated and non-affiliated mutual funds
or institutional investors. Such investors will invest in a Portfolio on the
same terms and conditions and will pay a proportionate share of the Portfolio's
expenses. However, the other investors investing in a Portfolio are not required
to sell their shares at the same public offering price as the corresponding
Feeder Fund due to variations in sales commissions and other operating expense.
These differences may result in differences in returns experienced by investors
in the various funds that invest in the corresponding Portfolio. Such
differences in returns are also present in other mutual fund structures,
including funds that have multiple classes of shares. Information regarding
other pooled investment entities or funds which invest in a Portfolio may be
obtained by contacting the Administrator, 24 Federal Street, Boston,
Massachusetts 02110, (617) 482-8260.
Whenever a Feeder Fund as an investor in a Portfolio is requested to vote
on matters pertaining to the Portfolio (other than the termination of the
Portfolio's business, which may be determined by the Trustees of the Portfolio
Trust without
<PAGE>
investor approval), the Feeder Fund will hold a meeting of Feeder
Fund shareholders and will vote its interest in the Portfolio for or against
such matters proportionately to the instructions to vote for or against such
matters received from Feeder Fund shareholders. A Fund will vote shares for
which it receives no voting instructions in the same proportion as the shares
for which it receives voting instructions. Other investors in a Portfolio may
alone or collectively acquire sufficient voting interests in the Portfolio to
control matters relating to the operation of the Portfolio, which may require
the corresponding Feeder Fund to withdraw its investment in the Portfolio or
take other appropriate action. Any such withdrawal could result in a
distribution "in kind" of portfolio securities (as opposed to a cash
distribution from the Portfolio). If securities are distributed, a Feeder Fund
could incur brokerage, tax or other charges in convening the securities to cash.
In addition, the distribution in kind may result in a less diversified portfolio
of investments or adversely affect the liquidity of a Feeder Fund.
Notwithstanding the above, there are other means for meeting shareholder
redemption requests, such as borrowing.
A Feeder Fund may withdraw (completely redeem) all its assets from its
corresponding Portfolio at any time if the Board of Trustees of the affected
Trust determines that it is in the best interest of that Feeder Fund to do so.
In the event a Feeder Fund withdraws all of its assets from its corresponding
Portfolio, or the Board of Trustees of the affected Trust determines that the
investment objective of such Portfolio is no longer consistent with the
investment objective of the Feeder Fund, the Trustees would consider what action
might be taken, including investing the assets of the Fund in another pooled
investment entity or retaining an investment adviser to manage the Feeder Fund's
assets in accordance with its investment objective. A Feeder Fund's investment
performance may be affected by a withdrawal of all its assets from its
corresponding Portfolio.
Tax-Sheltered Retirement Plans
The Funds are available for investment by individual retirement account
plans for individuals and their non-employed spouses, pension and profit sharing
plans for self- employed individuals, corporations and non-profit organizations,
or 401(k) tax-sheltered retirement plans. The minimum initial purchase for each
Fund will be waived for investments in 401(k) plans.
For more information, write to:
Wright Investors' Service Distributors, Inc.
1000 Lafayette Boulevard
Bridgeport, Connecticut 06604
or call:
(800) 888-9471
<PAGE>
The Wright Managed
Blue Chip Investment Funds
PROSPECTUS
May 1, 1998
Investment Adviser
Wright Investors' Service, Inc.
1000 Lafayette Boulevard
Bridgeport, Connecticut 06604
Principal Underwriter
Wright Investors' Service Distributors, Inc.
1000 Lafayette Boulevard
Bridgeport, Connecticut 06604
Administrator
Eaton Vance Management
24 Federal Street
Boston, Massachusetts 02110
Custodian
Investors Bank & Trust Company
200 Clarendon Street
Boston, Massachusetts 02116
Transfer Agent
First Data Investor Services Group
Wright Managed Investment Funds
P.O. Box 5156
Westborough, Massachusetts 01581-9698
Auditors
Deloitte & Touche LLP
125 Summer Street
Boston, Massachusetts 02110
24 Federal Street
Boston, Massachusetts 02110
<PAGE>
PART B
Information Required in a Statement of Additional Information
================================================================================
STATEMENT OF ADDITIONAL INFORMATION
STANDARD SHARES
INSTITUTIONAL SHARES
MONEY MARKET SHARES
May 1, 1998
THE WRIGHT MANAGED BLUE CHIP INVESTMENT FUNDS
-------------------------------------------------------------------------------
THE WRIGHT MANAGED EQUITY TRUST
Wright Selected Blue Chip Equities Fund
Wright Junior Blue Chip Equities Fund
Wright Major Blue Chip Equities Fund
Wright International Blue Chip Equities Fund
and
THE WRIGHT MANAGED INCOME TRUST
Wright U.S. Treasury Fund
Wright U.S. Treasury Near Term Fund
Wright Total Return Bond Fund
Wright Current Income Fund
Wright U.S. Treasury Money Market Fund
24 Federal Street
Boston, Massachusetts 02110
- -------------------------------------------------------------------------------
TABLE OF CONTENTS
PAGE
Additional Information about the Trusts
and the Portfolio Trust........................... 2
Additional Investment Information.................... 3
Investment Restrictions.............................. 6
Officers and Trustees................................ 7
Control Persons and Principal Holders of Shares...... 9
Investment Advisory and Administrative Services...... 11
Custodian............................................ 13
Independent Certified Public Accountants............. 13
Brokerage Allocation................................. 13
Pricing of Shares.................................... 14
Principal Underwriter................................ 15
Service Plans........................................ 17
Calculation of Performance and Yield Quotations...... 17
Taxes................................................ 19
Financial Statements................................. 20
Appendix............................................. 21
- -------------------------------------------------------------------------------
This combined Statement of Additional Information is NOT a prospectus and is
authorized for distribution to prospective investors only if preceded or
accompanied by the current combined Prospectus of the Funds in The Wright
Managed Equity Trust and The Wright Managed Income Trust (the "Trusts"), dated
May 1, 1998, as supplemented from time to time, which is incorporated herein by
reference. A copy of the Prospectus may be obtained without charge from Wright
Investors' Service Distributors, Inc., 1000 Lafayette Boulevard, Bridgeport,
Connecticut 06604 (Telephone: (800) 888-9471) or from the World Wide Web site
(http://www.wrightinvestors.com). Although each Fund offers only its shares of
beneficial interest, it is possible that a Fund might become liable for a
misstatement or omission in this Statement of Additional Information regarding
another Fund because the Funds use this combined Statement of Additional
Information. The Trustees of the Trusts have considered this factor in approving
the use of a combined Statement of Additional Information.
<PAGE>
Additional Information about the Trusts and the Portfolio Trust
Unless otherwise defined herein, capitalized terms have the meaning given
them in the Prospectus.
Each Trust is an open-end, management investment company organized as a
Massachusetts business trust. The Wright Managed Equity Trust was organized in
1982 and has the four series described herein. Each series offers two classes of
shares - Standard Shares and Institutional Shares. The Wright Managed Income
Trust was organized in 1983 and has the five series described herein. Each of
Wright U.S. Treasury Fund, Wright Treasury Near Term Fund and Wright Current
Income Fund offers two classes of shares -Standard Shares and Institutional
Shares. Wright Total Return Bond Fund offers a single class of shares - Standard
Shares, and Wright U.S. Treasury Money Market Fund offers a single class of
shares referred to as Money Market Shares. The Trust changed its name from The
Wright Managed Bond Trust March 28, 1991. Prior to May 1, 1997, The Wright Major
Blue Chip Equities Fund was called the "Wright Quality Core Equities Fund." The
Trusts' series are collectively referred to as the "Funds." Each Fund is a
diversified fund.
Each Trust's Declaration of Trust may be amended with the affirmative vote
of a majority of the outstanding shares of the Trust or, if the interests of a
particular Fund or class are affected, a majority of such Fund's or class's
outstanding shares. The Trustees are authorized to make amendments to each
Declaration of Trust that do not have a material adverse effect on the financial
interests of shareholders. Each Trust or series may be terminated upon the sale
of the Trust's or series' assets to another diversified open-end management
investment company, if approved by vote of a majority of the Trust's Trustees.
Each Trust or series or class may be terminated upon liquidation and
distribution of the assets of the Trust or series or class, if approved by a
majority of the Trustees. If not so terminated, each Trust or series or class
may continue indefinitely.
Each Trust's Declaration of Trust further provides that the Trustees will
not be liable for errors of judgment or mistakes of fact or law; however,
nothing in either Declaration of Trust protects a Trustee against any liability
to which he would otherwise be subject by reason of willful misfeasance, bad
faith, gross negligence, or reckless disregard of the duties involved in the
conduct of his office.
The Trusts are organizations of the type commonly known as "Massachusetts
business trusts." Under Massachusetts law, shareholders of such a trust may,
under certain circumstances, be held personally liable as partners for the
obligations of the trust. Each Trust's Declaration of Trust contains an express
disclaimer of shareholder liability in connection with the Trust property or the
acts, obligations or affairs of the Trust. Each Declaration of Trust also
provides for indemnification out of the Trust property of any shareholder held
personally liable for the claims and liabilities to which a shareholder may
become subject by reason of being or having been a shareholder. Thus, the risk
of a shareholder incurring financial loss on account of shareholder liability is
limited to circumstances in which a Trust itself would be unable to meet its
obligations. The risk of any shareholder incurring any liability for the
obligations of a Trust is extremely remote. The Investment Adviser does not
consider this risk to be material.
Each Portfolio is a series of the Portfolio Trust, an open-end management
investment company registered under the Investment Company Act of 1940, as
amended (the "1940 Act"). The Portfolio Trust was organized as a trust under the
laws of the State of New York on March 18, 1997.
Interests in the Portfolio Trust have no preemptive or conversion rights,
and are fully paid and non-assessable except as described in the Prospectus. The
Portfolio Trust normally will not hold meetings of holders of such interests
except as required under the 1940 Act. The Portfolio Trust would be required to
hold a meeting of holders in the event that at any time less than a majority of
its Trustees holding office had been elected by holders. The Trustees of the
Portfolio Trust continue to hold office until their successors are elected and
have qualified. Trustees may be removed by a majority vote of the interests held
by holders in the Portfolio Trust qualified to vote in the election. The 1940
Act requires the Portfolio Trust to assist its holders in calling such a
meeting. Upon liquidation of a Portfolio, holders in the Portfolio would be
entitled to share pro rata in the net assets of the Portfolio available for
distribution to holders.
Each holder in the Portfolio Trust is entitled to a vote in proportion to
its percentage interest in the Portfolio Trust.
<PAGE>
Additional Investment Information
Description of Investments
The use of the term "Fund" or "Funds" in the following "Additional
Investment Information" is intended to include the corresponding Portfolios,
except as noted.
U.S. Government, Agency and Instrumentality Securities - U.S. Government
securities are issued by the Treasury and include bills, certificates of
indebtedness, notes, and bonds. Agencies and instrumentalities of the U.S.
Government are established under the authority of an act of Congress and
include, but are not limited to, the Government National Mortgage Association,
the Tennessee Valley Authority, the Bank for Cooperatives, the Farmers Home
Administration, Federal Home Loan Banks, Federal Intermediate Credit Banks,
Federal Land Banks, and the Federal National Mortgage Association.
Repurchase Agreements - involve purchase of U.S. Government securities or
of other high-quality, short-term debt obligations. At the same time a Fund
purchases the security, it resells it to the vendor (a member bank of the
Federal Reserve System or recognized securities dealer), and is obligated to
redeliver the security to the vendor on an agreed-upon date in the future. The
resale price is in excess of the purchase price and reflects an agreed-upon
market rate unrelated to the coupon rate on the purchased security. Such
transactions afford an opportunity for a Fund to earn a return on cash which is
only temporarily available. A Fund's risk is the ability of the vendor to pay an
agreed-upon sum upon the delivery date, and the Trust believes the risk is
limited to the difference between the market value of the security and the
repurchase price provided for in the repurchase agreement. However, bankruptcy
or insolvency proceedings affecting the vendor of the security which is subject
to the repurchase agreement, prior to the repurchase, may result in a delay in a
Fund being able to resell the security.
In all cases when entering into repurchase agreements with other than FDIC
insured depository institutions, the Funds will take physical possession of the
underlying collateral security, or will receive written confirmation of the
purchase of the collateral security and a custodial or safekeeping receipt from
a third party under a written bailment for hire contract, or will be the
recorded owner of the collateral security through the Federal Reserve Book-Entry
System.
Certificates of Deposit - are certificates issued against funds deposited
in a bank, are for a definite period of time, earn a specified rate of return,
and are normally negotiable.
Bankers' Acceptances - are short-term credit instruments used to finance
the import, export, transfer or storage of goods. They are termed "accepted"
when a bank guarantees their payment at maturity.
Commercial Paper - refers to promissory notes issued by corporations in
order to finance their short-term credit needs.
Finance Company Paper - refers to promissory notes issued by finance
companies in order to finance their short-term credit needs.
Corporate Obligations - include bonds and notes issued by corporations in
order to finance longer-term credit needs.
Foreign Securities - WIBC may invest in foreign securities. Investing in
securities of foreign governments or securities issued by companies whose
principal business activities are outside the United States may involve
significant risks not associated with domestic investments. It is anticipated
that in most cases, the best available market for foreign securities will be on
exchanges or in over-the-counter markets located outside the U.S. Foreign stock
markets, while growing in volume and sophistication, are generally not as
developed as those in the U.S. 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 addition, foreign brokerage
commissions are generally higher than commissions on securities traded in the
U.S. and may be non-negotiable. In general, there is less overall governmental
supervision and regulation of securities exchanges, brokers and listed companies
than in the U.S.
The limited liquidity of certain foreign markets in which the Fund may
invest may affect the Fund's ability to accurately value its assets invested in
such market. In addition, the settlement systems of certain foreign countries
are less developed than the U.S., which may impede the Fund's ability to effect
portfolio transactions. 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 comparable to those applicable to domestic issuers. Investments in
foreign securities also involve the risk of possible adverse changes in exchange
control regulations, expropriation or confiscatory taxation, limitation on
removal of funds or other assets of the Fund, political or financial instability
or diplomatic and other
<PAGE>
developments which could affect such investments. Further, economies of
particular countries or areas of the world may differ favorably or unfavorably
from the economy of the U.S.
Foreign Currency Exchange Transactions. WIBC may engage in foreign currency
exchange transactions. Investments in securities of foreign governments and
companies whose principal business activities are located outside of the United
States will frequently involve currencies of foreign countries. In addition,
assets of the Fund may temporarily be held in bank deposits in foreign
currencies during the completion of investment programs. Therefore, the value of
the Fund's assets, as measured in U.S. dollars, may be affected favorably or
unfavorably by changes in foreign currency exchange rates and exchange control
regulations. Although the Fund values its assets daily in U.S. dollars, the Fund
does not intend to convert its holdings of foreign currencies into U.S. dollars
on a daily basis. The Fund may conduct its foreign currency exchange
transactions on a spot (i.e., cash) basis at the spot rate prevailing in the
foreign currency exchange market. The Fund will convert currency on a spot basis
from time to time and will incur costs in connection with such currency
conversion. Although foreign exchange dealers do not charge a fee for
conversion, they do realize a profit based on the difference (the "spread")
between the prices at which they are buying and selling various currencies.
Thus, a dealer may offer to sell a foreign currency to the Fund at one rate,
while offering a lesser rate of exchange should the Fund desire to resell that
currency to the dealer. The Fund does not intend to speculate in foreign
currency exchange rates.
As an alternative to spot transactions, the Fund may enter into contracts
to purchase or sell foreign currencies at a future date ("forward" contracts) or
purchase currency call or put options. A forward contract involves an obligation
to purchase or sell a specific currency at a future date and price fixed by
agreement between the parties at the time of entering into the contract. These
contracts are traded in the interbank market conducted directly between currency
traders (usually large commercial banks) and their customers. A forward contract
generally involves no deposit requirement and no commissions are charged at any
stage for trades. The Fund intends to enter into such contracts only on net
terms. The purchase of a put or call option is an alternative to the purchase or
sale of forward contracts and will be used if the option premiums are less then
those in the forward contract market.
The Fund may enter into forward contracts only under two circumstances.
First, when the Fund enters into a contract for the purchase or sale of a
security quoted or dominated in a foreign currency, it may desire to "lock in"
the U.S. dollar price of the security. This is accomplished by entering into a
forward contract for the purchase or sale, for a fixed amount of U.S. dollars,
of the amount of foreign currency involved in the underlying security
transaction ("transaction hedging"). Such forward contract transactions will
enable the Fund to protect itself against a possible loss resulting from an
adverse change in the relationship between the U.S. dollar and the subject
foreign currency during the period between the date the security is purchased or
sold and the date of payment for the security.
Second, when the Fund's investment adviser believes that the currency of a
particular foreign country may suffer a substantial decline against the U.S.
dollar, the Fund may enter into a forward contract to sell, for a fixed amount
of U.S. dollars, the amount of foreign currency approximating the value of some
or all of the securities quoted or denominated in such foreign currency. The
precise matching of the forward contract amounts and the value of the securities
involved will not generally be possible. The future value of such securities in
foreign currencies will change as a consequence of fluctuations in the market
value of those securities between the date the forward contract is entered into
and the date it matures. The projection of currency exchange rates and the
implementation of a short-term hedging strategy are highly uncertain. As an
operating policy, the Fund does not intend to enter into forward contracts for
such hedging purposes on a regular or continuous basis, and will not do so if,
as a result, more than 50% of the value of the Fund's total assets would be
committed to the consummation of such contracts. The Fund will also not enter
into such forward contracts or maintain a net exposure to such contracts if the
contracts would obligate the Fund to deliver an amount of foreign currency in
excess of the value of the Fund's securities or other assets denominated in that
currency.
The Fund's custodian will place cash or liquid securities in a segregated
account. The amount of such segregated assets will be at least equal to the
value of the Fund's total assets committed to the consummation of forward
contracts involving the purchase of forward currency. If the value of the
securities placed in the segregated account declines, additional cash or
securities will be placed in the account on a daily basis so that the value of
the account will equal the amount of the Fund's commitments with respect to such
contracts.
The Fund generally will not enter into a forward contract with a term of
greater than one year. At the maturity of a forward contract, the Fund may elect
to sell the portfolio security and make delivery of the foreign currency.
<PAGE>
Alternatively, the Fund may retain the security and terminate its contractual
obligation to deliver the foreign currency by purchasing an identical offsetting
contract from the same currency trader.
It is impossible to forecast with precision the market value of portfolio
securities at the expiration of a forward contract. Accordingly, it may be
necessary for the Fund to purchase additional foreign currency on the spot
market (and bear the expense of such purchase) if the Fund intends to sell the
security and the market value of the security is less than the amount of foreign
currency that the Fund is obligated to deliver. Conversely, it may be necessary
to sell on the spot market some of the foreign currency received upon the sale
of the portfolio security if its market value exceeds the amount of foreign
currency that the Fund is obligated to deliver.
If the Fund retains the portfolio security and engages in an offsetting
transaction, the Fund will incur a gain or a loss (as described below) to the
extent that there has been a change in forward contract prices. If the Fund
engages in an offsetting transaction, it may subsequently enter into a new
forward contract to sell the foreign currency. Should forward contract prices
decline during the period between the date the Fund enters into a forward
contract for the sale of the foreign currency and the date it enters into an
offsetting contract for the purchase of the foreign currency, the Fund will
realize a gain to the extent that the price of the currency it has agreed to
sell exceeds the price of the currency it has agreed to purchase. Should forward
contract prices increase, the Fund will suffer a loss to the extent that the
price of the currency it has agreed to purchase exceeds the price of the
currency it has agreed to sell.
The Fund will not speculate in forward contracts and will limit its use of
such contracts to the transactions described above. Of course, the Fund is not
required to enter into such transactions with respect to its portfolio
securities and will not do so unless deemed appropriate by its investment
adviser. This method of protecting the value of the Fund's securities against a
decline in the value of a currency does not eliminate fluctuations in the
underlying prices of the securities. It simply establishes a rate of exchange
which the Fund can achieve at some future time. Additionally, although such
contracts tend to minimize the risk of loss due to a decline in the value of the
hedged currency, they also tend to limit any potential gain which might be
realized if the value of such currency increases.
"When-Issued" Securities - Securities are frequently offered on a
"when-issued" basis. When so offered, the price, which is generally expressed in
terms of yield to maturity, is fixed at the time the commitment to purchase is
made, but delivery and payment for the when-issued securities may take place at
a later date. Normally, the settlement date occurs 15 to 90 days after the date
of the transaction. The payment obligation and the interest rate that will be
received on the securities are fixed at the time a Fund enters into the purchase
commitment. During the period between purchase and settlement, no payment is
made by the Fund to the issuer and no interest accrues to the Fund. To the
extent that assets of a Fund are held in cash pending the settlement of a
purchase of securities, the Fund would earn no income; however, it is intended
that the Funds will be fully invested to the extent practicable and subject to
the policies stated above. While when-issued securities may be sold prior to the
settlement date, it is intended that such securities will be purchased for a
Fund with the purpose of actually acquiring them unless a sale appears to be
desirable for investment reasons. At the time a commitment to purchase
securities on a when-issued basis is made for a Fund, the transaction will be
recorded and the value of the security reflected in determining the Fund's net
asset value. The Trust will establish a segregated account in which a Fund that
purchases securities on a when-issued basis will maintain cash and liquid
securities equal in value to commitments for when-issued securities. If the
value of the securities placed in the separate account declines, additional cash
or securities will be placed in the account on a daily basis so that the value
of the account will at least equal the amount of a Fund's when-issued
commitments. Such segregated securities either will mature or, if necessary, be
sold on or before the settlement date. Securities purchased on a when-issued
basis and the securities held by a Fund are subject to changes in value based
upon the public's perception of the credit worthiness of the issuer and changes
in the level of interest rates (which will generally result in both changing in
value in the same way, i.e., both experiencing appreciation when interest rates
decline and depreciation when interest rates rise). Therefore, to the extent
that a Fund remains substantially fully invested at the same time that it has
purchased securities on a when-issued basis, there will be greater fluctuations
in the market value of the Fund's net assets than if cash were solely set aside
to pay for when-issued securities.
Lending Portfolio Securities. All of the Funds in the Equity Trust may seek
to increase income by lending portfolio securities to broker-dealers or other
institutional borrowers. Under present regulatory policies of the Securities and
Exchange Commission, such loans are required to be secured continuously by
collateral in cash or liquid assets held by the
<PAGE>
Fund's custodian and maintained on a current basis at an amount at least
equal to the market value of the securities loaned, which will be marked to
market daily. Cash equivalents include certificates of deposit, commercial paper
and other short-term money market instruments. The Fund would have the right to
call a loan and obtain the securities loaned at any time on up to five business
days' notice. The Fund would not have the right to vote any securities having
voting rights during the existence of a loan, but would call the loan in
anticipation of an important vote to be taken among holders of the securities or
the giving or withholding of their consent on a material matter affecting the
investment.
WJBC Investment Process. A series of disciplines controls the purchase and
sale of securities for the Wright Junior Blue Chip Equities Fund. Each company
is reviewed on a continuous basis by Wright's Investment Committee in order to
assure that it continues to meet all of the required characteristics of
investment quality, financial strength, profitability and stability and growth.
These disciplines are believed to limit the financial risk which is sometimes
associated with investment in smaller companies. However, somewhat higher
volatility of market pricing and greater variability of individual stock
investment returns can be expected in this Fund as compared to the Wright
Selected Blue Chip Equities Fund, which is invested in larger companies.
Investment Restrictions
The following investment restrictions have been adopted by each Trust and
the Portfolio Trust and may be changed as to a Fund or a Portfolio, as the case
may be, only by the vote of a majority of the Fund's or Portfolio's outstanding
voting securities, which as used in this Statement of Additional Information
means the lesser of (a) 67% of the shares of the Fund or the interests of the
Portfolio if the holders of more than 50% of the shares or interests, as the
case may be, are present or represented at the meeting or (b) more than 50% of
the shares or interests of the Fund or Portfolio. Accordingly, the Funds
(Portfolios) may not:
(1) Borrow money or issue senior securities except as permitted by the
Investment Company Act of 1940. In addition, a Fund or Portfolio may not issue
bonds, debentures or senior equity securities, other than shares of beneficial
interest;
(2) With respect to 75% of the total assets of a Fund or Portfolio, purchase the
securities of any issuer if such purchase would cause more than 5% of its total
assets (taken at market value) to be invested in the securities of such issuer,
or purchase securities of any issuer if such purchase would cause more than 10%
of the total voting securities of such issuer to be held by the Fund or
Portfolio, except obligations issued or guaranteed by the U.S. Government, its
agencies or instrumentalities;
(3) Purchase securities on margin (but a Fund or Portfolio may obtain such
short-term credits as may be necessary for the clearance of purchase and sales
of securities);
(4) Purchase or sell real estate, although a Fund or Portfolio may purchase and
sell securities which are secured by real estate and securities of companies
which invest or deal in real estate;
(5) Purchase or sell commodities or commodity contracts for the purchase or sale
of physical commodities other than currency, excluding financial futures
contracts and options on these financial futures contracts;
(6) Make an investment in any one industry that would cause investments in such
industry to equal or exceed 25% of the Fund's or Portfolio's total assets taken
at market value at the time of such investment (other than securities issued or
guaranteed by the U.S. Government or its agencies or instrumentalities);
(7) Underwrite or participate in the marketing of securities of others; and
(8) Make loans to any person except by (a) the acquisition of debt securities
and making portfolio investments, (b) entering into repurchase agreements, or
(c) lending portfolio securities.
Notwithstanding the investment policies and restrictions of a Fund, a Fund
may invest its assets in an open-end management investment company with
substantially the same investment objective, policies and restrictions as the
Fund. Notwithstanding the investment restrictions set forth above, WTMM will be
subject to the restrictions set forth in Rule 2a-7 under the 1940 Act.
Nonfundamental Investment Restrictions. In addition to the foregoing fundamental
investment restrictions, each Trust and the Portfolio Trust have adopted the
following nonfundamental policies which may be amended or rescinded
<PAGE>
by the vote of the Trust's or the Portfolio Trust's Board of Trustees
without shareholder or interestholder approval. The Funds (Portfolios) may not:
(a) Invest more than 15% (10% for Wright U.S. Treasury Money Market Fund) of the
Fund's or Portfolio's net assets in illiquid investments, including repurchase
agreements maturing in more than seven days, securities which are not readily
marketable and restricted securities not eligible for resale pursuant to Rule
144A under the 1933 Act.
(b) Purchase additional securities if the Fund's or Portfolio's borrowings
exceed 5% of its total assets;
(c) Make short sales of securities, except short sales against the box; and
(d) For purposes of fundamental investment restriction no. 6, the Trusts and the
Portfolio Trust consider utility companies, gas, electric, water and telephone
companies as separate industries; except that, with respect to any Fund which
has a policy of being primarily invested in obligations whose interest income is
exempt from federal income tax, the restriction shall be that the Trust
(Portfolio Trust) will not purchase for that Fund either (i) pollution control
and industrial development bonds issued by non-governmental users or (ii)
securities whose interest income is not exempt from federal income tax, if in
either case the purchase would cause more than 25% of the market value of the
assets of the Fund (Portfolio) at the time of such purchase to be invested in
the securities of one or more issuers having their principal business activities
in the same industry.
Except for the restriction on borrowing, if a percentage restriction
contained in any Fund's or Portfolio's investment policies is adhered to at the
time of investment, a later increase or decease in the percentage resulting from
a change in the value of portfolio securities or the Fund's or Portfolio's net
assets will not be considered a violation of such restriction.
Officers and Trustees
The officers and Trustees of the Trusts are listed below. The officers and
Trustees of the Portfolio Trust are identical to those of the Trusts. Except as
indicated, each individual has held the office shown or other offices in the
same company for the last five years. Those Trustees who are "interested
persons" (as defined in the 1940 Act) of the Trusts, the Portfolio Trust,
Wright, Winthrop, Eaton Vance, Eaton Vance's wholly owned subsidiary, Boston
Management and Research ("BMR"), Eaton Vance's parent company, Eaton Vance Corp.
("EVC"), or Eaton Vance's and BMR's Trustee, Eaton Vance, Inc. ("EV"), by virtue
of their affiliation with either the Trust, Wright, Winthrop, Eaton Vance, BMR,
EVC or EV, are indicated by an asterisk (*).
PETER M. DONOVAN (55), President and Trustee*
President, Chief Executive Officer and Director of Wright and Winthrop; Vice
President, Treasurer and a Director of Wright Investors' Service Distributors,
Inc.
Address: 1000 Lafayette Boulevard, Bridgeport, CT 06604
H. DAY BRIGHAM, JR. (71), Vice President, Secretary and Trustee*
Retired Vice President, Chairman of the Management Committee and Chief Legal
Officer of Eaton Vance, EVC, BMR and EV; Director of Wright and Winthrop since
February, 1997.
Address: 92 Reservoir Avenue, Chestnut Hill, MA 02167
JUDITH R. CORCHARD (59), Vice President and Trustee*
Executive Vice President, Investment Management: Senior Investment Officer;
Chairman of the Investment Committee and Director of Wright and Winthrop. Ms.
Corchard was appointed a Trustee of the Trusts on December 10, 1997.
Address: 1000 Lafayette Boulevard, Bridgeport, CT 06604
WINTHROP S. EMMET (87), Trustee
Retired New York City Attorney at Law; Trust Officer, First National City Bank,
New York, NY (1963-1971).
Address: Box 327, West Center Road, West Stockbridge, MA 01266
LELAND MILES (74), Trustee
President Emeritus, University of Bridgeport (1987- present); President,
University of Bridgeport (1974-1987); Director, United Illuminating Company.
Address: 332 North Cedar Road, Fairfield, CT 06430
A.M. MOODY III (61), Vice President & Trustee*
Senior Vice President, Wright and Winthrop; President, Wright Investors' Servic
Distributors, Inc.
Address: 1000 Lafayette Boulevard, Bridgeport, CT 06604
LLOYD F. PIERCE (79), Trustee
Retired Vice Chairman (prior to 1984 - President), People's Bank,
Bridgeport, CT; Member, Board of Trustees, People's Bank, Bridgeport, CT; Board
of Directors, Southern Connecticut Gas Company; Chairman, Board of Directors,
COSINE.
Address: 140 Snow Goose Court, Daytona Beach, FL 32119
<PAGE>
RICHARD E. TABER (49), Trustee
Chairman and Chief Executive Officer of First County Bank, Stamford, CT.
Mr. Taber was appointed a Trustee of the Trusts on March 18, 1997.
Address: 117 Prospect Street, Stamford, CT 06904
RAYMOND VAN HOUTTE (73), Trustee
President Emeritus and Counselor of The Tompkins County Trust Co., Ithaca,
NY (since January 1989); President and Chief Executive Officer, The Tompkins
County Trust Company (1973-1988); President, New York State Bankers Association
(1987-1988); Director, McGraw Housing Company, Inc., Deanco, Inc., Evaporated
Metal Products and Ithaco, Inc.
Address: One Strawberry Lane, Ithaca, NY 14850
JAMES L. O'CONNOR (53), Treasurer
Vice President of Eaton Vance, BMR and EV. Officer of various investment
companies managed by Eaton Vance or BMR.
Address: 24 Federal Street, Boston, MA 02110
JANET E. SANDERS (62), Assistant Secretary and Assistant Treasurer
Vice President of Eaton Vance, BMR and EV. Officer of various investment
companies managed by Eaton Vance or BMR.
Address: 24 Federal Street, Boston, MA 02110
WILLIAM J. AUSTIN, JR. (46), Assistant Treasurer
Assistant Vice President of Eaton Vance, BMR and EV. Officer of various
investment companies managed by Eaton Vance or BMR. Mr. Austin was elected
Assistant Treasurer of the Trusts on December 18, 1991.
Address: 24 Federal Street, Boston, MA 02110
A. JOHN MURPHY (35), Assistant Secretary
Assistant Vice President of Eaton Vance, BMR and EV since March 1, 1994;
employee of Eaton Vance since March 1993. State Regulations Supervisor, The
Boston Company (1991-1993). Officer of various investment companies managed by
Eaton Vance or BMR. Mr. Murphy was elected Assistant Secretary of the Trusts on
June 21, 1995.
Address: 24 Federal Street, Boston, MA 02110
ERIC G. WOODBURY (40), Assistant Secretary
Vice President of Eaton Vance, BMR and EV since February 1993; formerly,
associate attorney at Dechert, Price & Rhoads. Officer of various investment
companies managed by Eaton Vance or BMR. Mr. Woodbury was elected Assistant
Secretary of the Trusts on June 21, 1995.
Address: 24 Federal Street, Boston, MA 02110
Each Trust's and the Portfolio Trust's Board of Trustees has established an
Independent Trustees' Committee consisting of all of the Independent Trustees
who are Messrs. Emmet, Miles, Pierce (Chairman), Taber and Van Houtte. The
responsibilities of the Independent Trustees' Committee include those of an
audit committee of the financial governance of the Trust, a nominating committee
for additional or replacement trustees of the Trust and a contract review
committee for consideration of renewals or changes in the investment advisory
agreements, distribution agreements and distribution plans and other agreements
as appropriate.
All of the Trustees and officers hold identical positions with the Equity
Trust, the Income Trust, The Wright Managed Blue Chip Series Trust, The Wright
EquiFund Equity Trust, Catholic Values Investment Trust and the Portfolio Trust.
The fees and expenses of those Trustees of the Trusts and the Portfolio Trust
(Messrs. Emmet, Miles, Pierce, Taber and Van Houtte) who are not interested
persons of the Trusts and the Portfolio Trust and of Mr. Brigham are paid by the
Trusts and the Portfolio Trust, respectively. They also receive additional
payments from other investment companies for which Wright provides investment
advisory services. The Trustees who are employees of Wright receive no
compensation from the Trusts and the Portfolio Trust. The Trusts and the
Portfolio Trust do not have a retirement plan for the Trustees. For Trustee
compensation from the Trusts and the other funds in the Wright Funds complex for
the fiscal year ended December 31, 1997, see the following table.
COMPENSATION TABLE
Fiscal Year Ended December 31, 1997
THE WRIGHT MANAGED EQUITY TRUST - 4 Funds
THE WRIGHT MANAGED INCOME TRUST - 5 Funds
Aggregate Compensation from
The Wright The Wright Wright(1)
Managed Managed Funds
Trustees Equity Trust Income Trust Complex
- -------------------------------------------------------------------------------
H. Day Brigham, Jr. $1,250 $1,250 $6,000
Winthrop S. Emmet $1,500 $1,500 $7,000
Leland Miles $1,500 $1,500 $6,250
Lloyd F. Pierce $1,500 $1,500 $7,000
Richard E. Taber $1,000 $1,000 $5,000
Raymond Van Houtte $1,500 $1,500 $7,000
- -------------------------------------------------------------------------------
(1) Total compensation paid includes not only service on the boards of The
Wright Managed Equity Trust (4 Funds) and The Wright Managed Income Trust (5
Funds) but also service on other boards in the Wright Fund complex (15 Funds)
for a total of 24 Funds.
<PAGE>
During the current fiscal year, the Portfolio Trust estimates payments to
its Trustees as follows:
PORTFOLIO TRUST COMPENSATION TABLE
Estimated Compensation Total
from the Compensation
Trustees Portfolio Trust Paid(1)
- ------------------------------------------------------------------------------
H. Day Brigham $1,750 $10,500
Winthrop S. Emmet $1,750 $10,500
Leland Miles $1,750 $10,500
Lloyd J. Pierce $1,750 $10,500
Richard E. Taber $1,750 $10,500
Raymond Van Houtte $1,250 $10,500
- -------------------------------------------------------------------------------
(1) Estimated to be paid by the Portfolio Trust and the 24 other funds in the
Wright Funds complex.
Control Persons and
Principal Holders of Shares
As of March 31, 1998, the Trustees and officers of the Trusts and the
Portfolio Trust, as a group, owned in the aggregate less than 1% of the
outstanding shares of each Fund and Portfolio.
As of March 31, 1998, the following shareholders were record holders of the
following percentages of the outstanding shares of the Funds:
<TABLE>
<CAPTION>
EQUITY TRUST Percent of Outstanding Shares Owned
- -----------------------------------------------------------------------------------------------------------------------------------
WSBC WJBC WMBC WIBC
-------------------------------------------------------------------
Standard Institutional
Shares Shares
<S> <C> <C> <C> <C>
Ruane & Co. 10.5% 11.5% 13.5%
c/o Tompkins County Trust Co.
Ithaca, NY 14851
- ----------------------------------------------------------------------------------------------------------------------------------
Southington Savings Investment 5.5% 5.3%
Mgt.Trust Services
Southington, CT 06489
- ----------------------------------------------------------------------------------------------------------------------------------
Judd's Inc. Pension Plan 18.6%
Washington, DC 20002
- ----------------------------------------------------------------------------------------------------------------------------------
Leo S. Rowe
Pan American Fund 8.7%
Washington, DC 20006
- ----------------------------------------------------------------------------------------------------------------------------------
RWDSU Pension Fund
c/o Compass Bank 66.7%
Birmingham, AL 36288
- ----------------------------------------------------------------------------------------------------------------------------------
Charles Schwab & Co. Inc. 5.1%
San Francisco, CA 94104
- ----------------------------------------------------------------------------------------------------------------------------------
Barhart Company 5.2%
Bar Harbor Banking & Trust Co.
Bar Harbor, ME 04609-0218
- ----------------------------------------------------------------------------------------------------------------------------------
Northern Trust Company Trustee. 18.3%
FBO American Maize Products
Chicago, IL 60675-2956
- ----------------------------------------------------------------------------------------------------------------------------------
CENCO 7.5%
Birmingham, AL 35296
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
INCOME TRUST Percent of Outstanding Shares Owned
- -----------------------------------------------------------------------------------------------------------------------------
WUSTB WNTB WTRB WCIF WTMM
---------------------------------------------------------------------------
Standard Institutional
Shares Shares
<S> <C> <C> <C> <C> <C> <C>
Independence Trust Co. 10.3% 6.0%
Manchester, NH 03105
- -------------------------------------------------------------------------------------------------------------------------------
Barhart Company 5.9% 9.0% 8.7%
Bar Harbor Banking & Trust Co.
Bar Harbor, ME 04609-0218
- --------------------------------------------------------------------------------------------------------------------------------
Sachem Trust National Corporation 5.4% 6.5%
Guilford, CT 06437
- --------------------------------------------------------------------------------------------------------------------------------
Ruane & Co.
c/o Tompkins County Trust Company 5.5%
Ithaca, NY 14851
- --------------------------------------------------------------------------------------------------------------------------------
First National Bank - Winfield, Kansas 5.6%
Winfield, KS 67156
- --------------------------------------------------------------------------------------------------------------------------------
Southington Savings Investment 11.6%
Mgt. Trust Services
Southington, CT 06489
- --------------------------------------------------------------------------------------------------------------------------------
Norwalk Savings Society 7.5% 5.2%
Norwalk, CT 06852
- --------------------------------------------------------------------------------------------------------------------------------
Thompson & Co. 6.8%
c/o First National Bank
Brookings, SD 57006
- --------------------------------------------------------------------------------------------------------------------------------
RWDSU Pension Fund - Fixed 62.8%
RWDSU Benefit Plan 33.4%
c/o Compass Bank
Birmingham, AL 35296
- --------------------------------------------------------------------------------------------------------------------------------
Niagara Mohawk Power Corp. 6.9%
c/o Boston Safe Deposit & Trust Co.
Medford, MA 02155
- --------------------------------------------------------------------------------------------------------------------------------
Creve & Company 23.5%
Chesterfield, MO 63017
- --------------------------------------------------------------------------------------------------------------------------------
First County Bank 5.4%
Stamford, CT 06901
- --------------------------------------------------------------------------------------------------------------------------------
Community Banks NA 5.9%
Trust Department
Hazleton, PA 18201
- --------------------------------------------------------------------------------------------------------------------------------
Greenfield Savings Bank - Income 5.2%
Greenfield, MA 01304-1537
- --------------------------------------------------------------------------------------------------------------------------------
Security First National Bank 5.1%
Alexandria, LA 71309
</TABLE>
<PAGE>
Investment Advisory and
Administrative Services
The Trusts have engaged Winthrop to act as investment adviser to the Funds
pursuant to Investment Advisory Contracts (the "Investment Advisory Contracts").
Pursuant to a service agreement effective February 1, 1996 between Winthrop and
Wright, Wright, acting under the general supervision of the Trusts' Trustees,
furnishes each non-Feeder Fund with investment advice and management services,
as described below. Winthrop supervises Wright's performance of this function
and retains its contractual obligations under the Investment Advisory Contracts.
Winthrop has agreed that for so long as a Feeder Fund invests its investable
assets in a corresponding Portfolio it will not impose any advisory fees to
which it would be entitled under the respective Investment Advisory Contract.
The Portfolio Trust has engaged Wright as investment adviser to provide
investment advice and management services to the Portfolios pursuant to the
Portfolio Investment Advisory Contract. The estate of John Winthrop Wright may
be considered a controlling person of Winthrop and Wright by reason of its
ownership of 29% of the outstanding shares of Winthrop.
Pursuant to each Investment Advisory Contract and the Portfolio Investment
Advisory Contract, Wright will carry out the investment and reinvestment of the
assets of the non-Feeder Funds and the Portfolios, will furnish continuously an
investment program with respect to the non-Feeder Funds and the Portfolios, will
determine which securities should be purchased, sold or exchanged, and will
implement such determinations. Wright will furnish to the non-Feeder Funds and
the Portfolios investment advice and management services, office space,
equipment and clerical personnel, and investment advisory, statistical and
research facilities. In addition, Wright has arranged for certain members of the
Eaton Vance and Wright organizations to serve without salary as officers or
Trustees. In return for these services, each non-Feeder Fund or Portfolio is
obligated to pay a monthly advisory fee calculated at the rates set forth in the
current Prospectus. The following table sets forth the net assets of each Fund
and the Portfolios at December 31, 1997 and the advisory fee paid by the Funds
and the Portfolios during the fiscal years ended December 31, 1997, 1996 and
1995. Prior to the close of business on April 30, 1997, Wright managed directly
the assets of the Feeder Funds.
Aggregate Advisory Fees Paid for the
Net Assets Fiscal Year Ended December 31
at 12/31/97 1997* 1996 1995
- ------------------------------------------------------------------------------
THE WRIGHT MANAGED EQUITY TRUST
WBC $259,410,868 $ 437,112 $1,436,025 $1,283,832
SBCP 259,492,131 1,019,152 - -
WJBC(1) 33,489,734 24,483 104,339 174,577
JBCP(2) 33,489,351 74,633 - -
WMBC(3) 27,720,746 118,332 175,798 235,233
WIBC 257,792,048 716,225 1,847,061 1,682,897
IBCP 257,046,620 1,441,589 - -
THE WRIGHT MANAGED INCOME TRUST
WUSTB $74,158,057 $73,974 $163,849 $ 65,539
USTP 74,538,499 179,562 - -
WNTB 102,564,796 172,837 584,296 739,265
USTNTP 102,861,439 301,140 - -
WTRB 80,003,663 326,326 442,120 525,335
WCIF 98,018,261 94,877 256,204 313,626
CIP 97,765,386 245,848 - -
WTMM(4) 87,058,776 329,000 203,163 162,732
- -------------------------------------------------------------------------------
* For the period from January 1, 1997 to April 1, 1997 for WBC, WJBC and WIBC
and for the period from May 1, 1997 to December 31, 1997 for SBCP, JBCP and
IBCP.
(1)To enhance the net income of the Fund, Wright made a reduction of its
advisory fee during the fiscal year ended December 31, 1996 by $1,580.
(2)To enhance the net income of the Fund, Wright made a reduction of its
advisory fee during the period from May 1, 1997 to December 31, 1997 by
$44,357.
(3)To enhance the net income of the Fund, Wright made a reduction of its
advisory fee during the fiscal year ended December 31, 1997 by $50,081.
(4)To enhance the net income of the Fund, Wright made a reduction of its
advisory fee during each of the three fiscal years ended December 31, 1997 by
$131,353, $127,441 and $87,656, respectively.
The Trusts have engaged Eaton Vance to act as the administrator for each
Fund pursuant to separate Administration Agreements. The Portfolio Trust has
engaged Eaton Vance to act as the administrator for each Portfolio pursuant to a
Portfolio Administration Agreement. For its services under the Trusts' and the
Portfolio Trust's Administration Agreements, Eaton Vance receives monthly
administration fees at the annual rates set forth in the current Prospectus. The
following table sets forth the administration fees earned from the Funds for the
fiscal years ended December 31, 1997, 1996 and 1995.
<PAGE>
Administration Fees Paid by the Funds
for the Fiscal Year Ended December 31
1997 1996 1995
- ------------------------------------------------------------------------------
THE WRIGHT MANAGED EQUITY TRUST
WBC $279,719 $277,044 $263,811
WJBC 35,914 37,941 63,483
WMBC 51,841 78,132 104,548
WIBC 301,235 282,614 270,853
THE WRIGHT MANAGED INCOME TRUST
WUSTB $ 63,450 $ 40,959 $ 16,384
WNTB 105,782 116,024 129,501
WTRB 81,582 103,457 110,899
WCIF 83,305 64,043 78,407
WTMM 65,863 40,793 32,543
- -------------------------------------------------------------------------------
The Portfolio Trust did not commence operations until May 1, 1997 and paid
no administration fees to Eaton Vance as of December 31, 1997.
Eaton Vance and EV are both wholly owned subsidiaries of EVC. BMR is a
wholly owned subsidiary of Eaton Vance. Eaton Vance and BMR are both
Massachusetts business trusts, and EV is the trustee of Eaton Vance and BMR. The
Directors of EV are M. Dozier Gardner, James B. Hawkes and Benjamin A. Rowland,
Jr. The Directors of EVC consist of the same persons and John G. L. Cabot, John
M. Nelson, Vincent M. O'Reilly and Ralph Z. Sorenson. Mr. Hawkes is chairman,
president and chief executive officer and Mr. Gardner is vice chairman of EVC,
Eaton Vance, BMR and EV. All of the issued and outstanding shares of Eaton Vance
and of EV are owned by EVC. All of the issued and outstanding shares of BMR are
owned by Eaton Vance. All shares of the outstanding Voting Common Stock of EVC
are deposited in a Voting Trust, the Voting Trustees of which are Messrs.
Gardner, Hawkes, Rowland and Alan R. Dynner, Thomas E. Faust, Jr., William M.
Steul and Wharton P. Whitaker. The Voting Trustees have unrestricted voting
rights for the election of Directors of EVC. All of the outstanding voting trust
receipts issued under said Voting Trust are owned by certain of the officers of
Eaton Vance and BMR who are also officers or officers and Directors of EVC and
EV. As of April 30, 1998, Messrs. Gardner and Hawkes each owned 24% of such
voting trust receipts. Messrs. Rowland and Faust owned 15% and 13%,
respectively, and Messrs. Dynner and Whitaker each owned 8% of such voting trust
receipts. Messrs. Austin, Murphy, O'Connor and Woodbury and Ms. Sanders are
officers of the Trusts and are also members of the Eaton Vance, BMR and EV
organizations. Eaton Vance will receive the fees paid under the Administration
Agreements.
Eaton Vance owns all the stock of Northeast Properties, Inc., which is
engaged in real estate investment. EVC owns all of the stock of Fulcrum
Management, Inc. and MinVen, Inc., which are engaged in precious metal mining
venture investment and management.
In addition to the fees payable to the service providers described herein,
the Funds and Portfolios are responsible for usual and customary expenses
associated with their respective operations not otherwise payable by Wright or
Eaton Vance. These include, among other things, organization expenses, legal
fees, audit and accounting expenses, insurance costs, the compensation and
expenses of the Trustees, interest, taxes and extraordinary expenses (such as
for litigation). For each Fund, such expenses also include printing and mailing
reports, notices and proxy statements to shareholders and registration fees
under federal securities laws and the cost of providing required notices to
state securities administrators. For the Portfolios, such expenses also include
registration fees under foreign securities laws (for WIBC) and brokerage
commissions.
The Investment Advisory Contracts and Portfolio Investment Advisory
Contract will remain in effect until February 28, 1999. The Investment Advisory
Contracts and the Portfolio Investment Advisory Contract may be continued from
year to year so long as such continuance is approved at least annually (i) by
the vote of a majority of the Trustees who are not "interested persons" of the
Trust, the Portfolio Trust, Eaton Vance or Wright cast in person at a meeting
specifically called for the purpose of voting on such approval and (ii) by the
Board of Trustees of the Trust or by vote of a majority of the outstanding
voting securities of the respective Funds or Portfolios. The Administration
Agreements may be continued from year to year after February 28, 1999 so long as
such continuance is approved annually by the vote of a majority of the Trustees.
Each agreement may be terminated at any time without penalty on sixty (60) days
written notice by the Board of Trustees or Directors of either party, or by vote
of the majority of the outstanding shares of the affected Fund or Portfolio, and
each agreement will terminate automatically in the event of its assignment. Each
agreement provides that, in the absence of willful misfeasance, bad faith, gross
negligence or reckless disregard of its obligations or duties to the Trust or
Portfolio Trust, as the case may be, under such
<PAGE>
agreement on the part of Eaton Vance or Wright, Eaton Vance or Wright will
not be liable to the Trust or Portfolio Trust, as the case may be, for any loss
incurred.
Custodian
Investors Bank & Trust Company ("IBT"), 200 Clarendon Street, Boston,
Massachusetts, acts as custodian for the Funds and the Portfolios. IBT has the
custody of all cash and securities of the Funds and Portfolios, maintains the
Funds' and Portfolios' general ledgers and computes the daily net asset value
per share. In such capacity it attends to details in connection with the sale,
exchange, substitution, transfer or other dealings with the Funds' and
Portfolios' investments, receives and disburses all funds and performs various
other ministerial duties upon receipt of proper instructions from the Funds and
Portfolios.
Independent Certified
Public Accountants
Deloitte & Touche LLP, 125 Summer Street, Boston, Massachusetts are the
Trusts' and the Portfolio Trust's independent certified public accountants,
providing audit services, tax return preparation, and assistance and
consultation with respect to the preparation of filings with the Securities and
Exchange Commission.
Brokerage Allocation
Wright places the portfolio security transactions for each non-Feeder Fund
and Portfolio, which in some cases may be effected in block transactions which
include other accounts managed by Wright. Wright provides similar services
directly for bank trust departments. Wright seeks to execute portfolio security
transactions on the most favorable terms and in the most effective manner
possible. In seeking best execution, Wright will use its best judgment in
evaluating the terms of a transaction, and will give consideration to various
relevant factors, including without limitation the size and type of the
transaction, the nature and character of the markets for the security, the
confidentiality, speed and certainty of effective execution required for the
transaction, the reputation, experience and financial condition of the
broker-dealer and the value and quality of service rendered by the broker-dealer
in other transactions, and the reasonableness of the brokerage commission or
markup, if any.
It is expected that on frequent occasions there will be many broker-dealer
firms which will meet the foregoing criteria for a particular transaction. In
selecting among such firms, the Funds may give consideration to those firms
which supply brokerage and research services, quotations and statistical and
other information to Wright for their use in servicing their accounts. The Funds
may include firms which purchase investment services from Wright. The term
"brokerage and research services" includes advice as to the value of securities,
the advisability of investing in, purchasing or selling securities, and the
availability of securities or purchasers or sellers of securities; furnishing
analyses and reports concerning issuers, industries, securities, economic
factors and trends, portfolio strategy and the performance of accounts; and
effecting securities transactions and performing functions incidental thereto
(such as clearance and settlement). Such services and information may be useful
and of value to Wright in servicing all or less than all of their accounts and
the services and information furnished by a particular firm may not necessarily
be used in connection with the account which paid brokerage commissions to such
firm. The advisory fee paid by the non-Feeder Funds and the Portfolios to Wright
is not reduced as a consequence of Wright's receipt of such services and
information. While such services and information are not expected to reduce
Wright's normal research activities and expenses, Wright would, through use of
such services and information, avoid the additional expenses which would be
incurred if it should attempt to develop comparable services and information
through its own staffs.
Subject to the requirement that Wright shall use its best efforts to seek
to execute each non-Feeder Fund's and Portfolio's portfolio security
transactions at advantageous prices and at reasonably competitive commission
rates, Wright, as indicated above, is authorized to consider as a factor in the
selection of any broker-dealer firm with whom portfolio orders may be placed the
fact that such firm has sold or is selling shares of the Funds or of other
investment companies sponsored by Wright. This policy is consistent with a rule
of the National Association of Securities Dealers, Inc., which rule provides
that no firm which is a member of the Association shall favor or disfavor the
distribution of shares of any particular investment company or group of
investment companies on the basis of brokerage commissions received or expected
by such firm from any source.
<PAGE>
Under each Investment Advisory Contract and the Portfolio Investment
Advisory Contract, Wright has the authority to pay commissions on portfolio
transactions for brokerage and research services exceeding that which other
brokers or dealers might charge provided certain conditions are met. This
authority will not be exercised, however, until the Prospectus or this Statement
of Additional Information has been supplemented or amended to disclose the
conditions under which Wright proposes to do so.
Each Investment Advisory Contract and the Portfolio Investment Advisory
Contract expressly recognizes the practices which are provided for in Section
28(e) of the Securities Exchange Act of 1934 by authorizing the selection of a
broker or dealer which charges a non-Feeder Fund or Portfolio a commission which
is in excess of the amount of commission another broker or dealer would have
charged for effecting that transaction if it is determined in good faith that
such commission was reasonable in relation to the value of the brokerage and
research services which have been provided.
During the fiscal years ended December 31, 1997, 1996 and 1995, the Funds
in the Equity Trust or their corresponding Portfolios paid the following
aggregate brokerage commissions on portfolio transactions:
1997* 1996 1995
---------------------------------
WBC $224,234 $271,332 $206,758
WJBC $ 37,697 $ 33,088 $ 45,144
WMBC $ 53,114 $ 60,066 $100,898
WIBC $779,120 $495,678 $241,321
* For the period from January 1, 1997 to April 30, 1997 for WBC, WJBC and WIBC
and for the period from May 1, 1997 to December 31, 1997 for SBCP, JBCP, and
IBCP.
It is expected that purchases and sales of portfolio investments by the
Funds in the Wright Managed Income Trust (or their corresponding Portfolios)
will be with the issuers or with major dealers in debt instruments acting as
principal, and that the Funds (or Portfolios) will normally pay no brokerage
commissions. The cost of securities purchased from underwriters includes a
disclosed, fixed underwriting commission or concession, and the prices for which
securities are purchased from and sold to dealers usually include an undisclosed
dealer mark-up or mark-down. During the fiscal years ended December 31, 1997,
1996 and 1995, none of the Funds in the Income Trust paid brokerage commissions.
Pricing of Shares
All Funds Except
Wright U.S. Treasury Money Market Fund
For a description of how the Funds value their Standard Shares and
Institutional Shares, see "How the Funds Value their Shares" in the Funds'
current Prospectus. The Funds value securities with a remaining maturity of 60
days or less by the amortized cost method. The amortized cost method involves
initially valuing a security at its cost (or its fair market value on the
sixty-first day prior to maturity) and thereafter assuming a constant
amortization to maturity of any discount or premium, without regard to
unrealized appreciation or depreciation in the market value of the security.
Wright U.S. Treasury Money Market Fund
Wright U.S. Treasury Money Market Fund values its shares three times on
each day the New York Stock Exchange (the "Exchange") is open at noon, at 3:00
p.m. and as of the close of regular trading on the Exchange - normally 4:00 p.m.
New York time. The net asset value is determined by IBT (as agent for the Fund)
in the manner authorized by the Trustees. Portfolio assets of the Fund are
valued at amortized cost in an effort to attempt to maintain a constant net
asset value of $1.00 per share, which the Trustees have determined to be in the
best interests of the Fund and its shareholders. The Fund's use of the amortized
cost method to value the portfolio securities is conditioned on its compliance
with conditions contained in a rule issued by the Securities and Exchange
Commission (the "Rule").
Under the Rule, the Trustees are obligated, as a particular responsibility
within the overall duty of care owed to the shareholders, to establish
procedures reasonably designed, taking into account current market conditions
and the investment objectives of the Fund, to stabilize the net asset value per
share as computed for the purposes of distribution, redemption and repurchase at
$1.00 per share. The Trustees' procedures include periodically monitoring, as
they deem appropriate and at such intervals as are reasonable in light of
current market conditions, the extent of deviation between the amortized cost
value per share and a net asset value per share based upon available indications
of market value as well as review of the methods used to calculate the
deviation. The Trustees will consider what steps, if any, should be taken in the
event of a difference of more than 1/2 of 1% between such two values. The
Trustees will take such steps as they consider appropriate (e.g., redemption in
kind, selling prior to maturity to realize gains or losses or to shorten the
average portfolio
<PAGE>
maturity, withholding dividends or using market quotations) to minimize any
material dilution or other unfair results to investors or existing shareholders,
which might arise from differences between the two values.
The Rule requires that the Fund's investments, including repurchase
agreements, be limited to those U.S. dollar-denominated instruments which are
determined to present minimal credit risks and which are at the time of
acquisition rated by the requisite number of nationally recognized statistical
rating organizations in one of the two highest short-term rating categories or,
in the case of any instrument that is not so rated, of comparable quality as
determined by Wright in accordance with procedures established by the Trustees.
It also calls for the Fund to maintain a dollar-weighted average portfolio
maturity (not more than 90 days) appropriate to its objective of maintaining a
stable net asset value of $1.00 per share and precludes the purchase of any
instrument with a remaining maturity of more than 397 days. Should the
disposition of a portfolio security result in a dollar-weighted average
portfolio maturity of more than 90 days, the Fund's available cash will be
invested in such a manner as to reduce such maturity to 90 days or less as soon
as reasonably practicable.
It is the normal practice of Wright U.S. Treasury Money Market Fund to hold
portfolio securities to maturity and to realize par value therefor unless a sale
or other disposition is mandated by redemption requirements or other
extraordinary circumstances. Under the amortized cost method of valuation,
traditionally employed by institutions for valuation of money market
instruments, neither the amount of daily income nor the Fund's net asset value
is affected by any unrealized appreciation or depreciation on securities held
for the Fund. There can be no assurance that the Fund's objectives will be
achieved.
* * *
The Funds and the Portfolios will not price securities on the following
national holidays: New Year's Day; Martin Luther King, Jr. Day; Presidents' Day;
Good Friday; Memorial Day; Independence Day; Labor Day; Thanksgiving Day; and
Christmas Day.
Principal Underwriter
Each Trust has adopted a Distribution Plan as defined in Rule 12b-1 under
the 1940 Act (the "Plan") on behalf of its Funds (except Wright U.S. Treasury
Money Market Fund) with respect to each Fund's Standard Shares. Each Plan was
approved by the Trustees, including a majority of the Trustees who are not
interested persons of theTrust and who have no direct or indirect financial
interests in the operation of the Trust's Plan (the "12b-1 Trustees") on January
22, 1997. Each Trust's Plan specifically authorizes each Fund to pay direct and
indirect expenses incurred by any separate distributor or distributors under
agreement with the Trust in activities primarily intended to result in the sale
of its Standard Shares. The expenses of such activities will not exceed 0.25%
per annum of each Fund's average daily net assets attributable to the Standard
Shares. Payments under the Plan are reflected as an expense in each Fund's
financial statements relating to the applicable class of shares.
Each Trust has entered into a distribution contract on behalf of its Funds
with respect to the Funds' Standard Shares and Institutional Shares with its
principal underwriter, Wright Investors' Service Distributors, Inc. ("WISDI"), a
wholly-owned subsidiary of Winthrop, providing for WISDI to act as a separate
distributor of each Fund's Standard Shares and Institutional Shares. Wright U.S.
Treasury Money Market Fund is not obligated to make any distribution payments to
WISDI under its Distribution Contract.
Each Fund, except Wright U.S. Treasury Money Market Fund, will pay 0.25% of
its average daily net assets attributable to Standard Shares, to WISDI for
distribution activities on behalf of the Fund in connection with the sale of its
Standard Shares. WISDI will provide on a quarterly basis documentation
concerning the expenses of such activities. Documented expenses of a Fund may
include compensation paid to and out-of-pocket disbursements of officers,
employees or sales representatives of WISDI, including telephone costs, the
printing of prospectuses and reports for other than existing shareholders,
preparation and distribution of sales literature, advertising of any type
intended to enhance the sale of shares of the Fund and interest or other
financing charges. Subject to the 0.25% per annum limitation imposed on Standard
Shares by each Trust's Plan, a Fund may pay separately for expenses of
activities primarily intended to result in the sale of the Fund's Standard
Shares. It is contemplated that the payments for distribution described above
will be made directly to WISDI. If the distribution payments to WISDI exceed its
expenses, WISDI may realize a profit from these arrangements. Peter M. Donovan,
President, Chief Executive Officer and a Trustee of each Trust and President and
a Director of Wright and Winthrop, is Vice President, Treasurer and a Director
of WISDI. A.M. Moody, Ill, Vice President and a Trustee of the Trust and Senior
Vice President of Wright and Winthrop, is President and a Director of WISDI.
<PAGE>
It is the opinion of the Trustees and officers of each Trust that the
following are not expenses primarily intended to result in the sale of Standard
Shares Shares issued by any Fund: fees and expenses of registering shares of the
Fund under federal or state laws regulating the sale of securities; fees and
expenses of registering the Trust as a broker-dealer or of registering an agent
of the Trust under federal or state laws regulating the sale of securities; fees
of registering, at the request of the Trust, agents or representatives of a
principal underwriter or distributor of any Fund under federal or state laws
regulating the sale of securities, provided that no sales commission or "load"
is charged on sales of shares of the Fund; and fees and expenses of preparing
and setting in type the Trust's registration statement under the Securities Act
of 1933. Should such expenses be deemed by a court or agency having jurisdiction
to be expenses primarily intended to result in the sale of Standard Shares
issued by a Fund, they will be considered to be expenses contemplated by and
included in the Plan but not subject to the 0.25% per annum limitation described
herein.
Under each Trust's Plan, the President or Vice President of the Trust will
provide to the Trustees for their review, and the Trustees will review at least
quarterly, a written report of the amounts expended under the Plan and the
purposes for which such expenditures were made. For the fiscal year ended
December 31, 1997, it is estimated that WISDI spent approximately the following
amounts on behalf of The Wright Managed Investment Funds, including the Funds in
the Trusts:
Wright Investors' Service Distributors, Inc.
Financial Summaries for the Year 1997
<TABLE>
<CAPTION>
Printing & Mailing Travel & Commissions Administration
FUNDS - Standard Shares Promotional Prospectuses Entertainment & Service Fees & Other TOTAL
- -------------------------------------------------------------------------------------------------------------------------------
THE WRIGHT MANAGED EQUITY TRUST
<S> <C> <C> <C> <C> <C> <C>
Wright Selected Blue Chip Equities Fund (WBC) $151,796 $ 54,406 $ 30,276 $105,033 $190,106 $531,616
Wright Junior Blue Chip Equities Fund (WJBC) 8,103 2,904 1,6216 5,601 10,148 28,379
Wright Major Blue Chip Equities Fund (WMBC) 5,537 1,984 1,104 3,831 6,934 19,391
Wright International Blue Chip Equities Fund
(WIBC) 168,461 60,379 33,600 116,564 210,978 589,982
THE WRIGHT MANAGED INCOME TRUST
Wright U.S. Treasury Fund (WUSTB) $ 42,515 $ 15,238 $ 8,480 29,417 $ 53,245 $148,895
Wright U.S. Treasury Near Term Fund (WNTB) 76,941 27,577 15,346 53,238 96,359 269,461
Wright Total Return Bond Fund (WTRB) 46,588 16,698 9,292 32,236 58,346 163,160
Wright Current Income Fund (WCIF) 47,566 17,048 9,487 32,912 59,570 166,583
</TABLE>
The following table shows the distribution expenses allowable to WISDI and
paid by each Fund during the year ended December 31, 1997.
<TABLE>
<CAPTION>
Distribution Expenses Distribution Expenses
Distribution Distribution Paid As a % of Distribution Distribution Paid As a % of
Expenses Expenses Fund's Average Expenses Expenses Fund's Average
Allowable Paid by Fund Net Asset Value Allowable Paid by Fund Net Asset Value
- --------------------------------------------------------------------------------------------------------------------------------
THE WRIGHT MANAGED EQUITY TRUST - Standard Shares THE WRIGHT MANAGED INCOME TRUST - Standard
- ------------------------------------------------------- ---------------------------------------------------------------
Shares
- ------
<S> <C> <C> <C> <C> <C> <C> <C>
WBC $531,616 $531,616 0.23% WUSTB $158,158 $148,895 (3) 0.23%
WJBC 42,079 7,133 (1) 0.04% WNTB 288,791 269,461 (4) 0.22%
WMBC 60,491 19,391 (2) 0.08% WTRB 163,160 163,160 0.21%
WIBC 589,982 589,982 0.23% WCIF 212,212 166,583 (5) 0.19%
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) WISDI reduced its fee in the amount of $34,946.
(2) WISDI reduced its fee in the amount of $41,100.
(3) WISDI reduced its fee in the amount of $ 9,263.
(4) WISDI reduced its fee in the amount of $19,330.
(5) WISDI reduced its fee in the amount of $45,629.
<PAGE>
Under its terms, each Trust's Plan remains in effect from year to year,
provided such continuance is approved annually by a vote of its Trustees,
including a majority of the 12b-1 Trustees. Each Plan may not be amended to
increase materially the amount to be spent by the applicable class for the
services described therein without approval of a majority of the outstanding
Standard Shares and all material amendments of the Plan must also be approved by
the Trustees of the Trust in the manner described above. Each Trust's Plan may
be terminated as to each class at any time without payment of any penalty by
vote of a majority of the Trustees of the Trust who are not interested persons
of the Trust and who have no direct or indirect financial interest in the
operation of the Plan or by a vote of a majority of the outstanding voting
securities of the affected class. If a Plan is terminated, the respective Fund
would stop paying the distribution fee with respect to the affected class and
the Trustees would consider other methods of financing the distribution of the
Fund's Standard Shares. So long as a Trust's Plan is in effect, the selection
and nomination of Trustees who are not interested persons of the Trust will be
committed to the discretion of the Trustees who are not such interested persons.
The Trustees of each Trust have determined that in their judgment there is a
reasonable likelihood that the Plan will benefit the Trust and the holders of
Standard Shares.
Service Plans
The Service Plans were adopted on behalf of the Funds by the Trustees of
each Trust, including a majority of the Trustees who are not interested persons
of the Trust and who have no direct or indirect financial interest in the
operation of the Trust's Service Plan (the "Plan Trustees"), on January 22,
1997, and will continue in effect from year to year, provided such continuance
is approved annually by a vote of the respective Trust's Trustees, including a
majority of the Plan Trustees. Each Service Plan may be terminated at any time
without payment of any penalty by vote of a majority of the Trustees of the
appropriate Trust who are not interested persons of that Trust and who have no
direct or indirect financial interest in the operation of the Service Plan. The
Trustees of each Trust have determined that in their judgment there is a
reasonable likelihood that the Service Plan will benefit the Funds in each
respective Trust and each Fund's holders of Standard Shares and Institutional
Shares.
For the period from May 1, 1997 to December 31,1997, the Funds did not
accrue or pay any service fees.
Calculation of Performance
and Yield Quotations
The average annual total return of each Fund is determined for a particular
period by calculating the actual dollar amount of investment return on a $1,000
investment in the Fund made at the maximum public offering price (i.e., net
asset value) at the beginning of the period, and then calculating the annual
compounded rate of return which would produce that amount (only a single class
of shares of each Fund was outstanding as of December 31, 1997). Total return
for a period of one year is equal to the actual return of the Fund during that
period. This calculation assumes that all dividends and distributions are
reinvested at net asset value on the reinvestment dates during the period.
The yield of each Fund, other than Wright U.S. Treasury Money Market Fund,
is computed by dividing its net investment income per share earned during a
recent 30- day period by the maximum offering price (i.e., net asset value) per
share on the last day of the period and annualizing the resulting figure (only a
single class of shares of each Fund was outstanding as of December 31, 1997).
Net investment income per share is equal to the Fund's dividends and interest
earned during the period, with the resulting number being divided by the average
daily number of shares outstanding and entitled to receive dividends during the
period.
For the 30-day period ended December 31, 1997, the yield of each Fund,
other than Wright U.S. Treasury Money Market Fund, was as follows:
30-Day Period Ended
December 31, 1997*
- --------------------------------------------------------------------------
THE WRIGHT MANAGED EQUITY TRUST
Wright Selected Blue Chip Equities Fund 0.21%
Wright Junior Blue Chip Equities Fund 0.44%
Wright Major Blue Chip Equities Fund 0.32%
Wright International Blue Chip Equities Fund N/A
THE WRIGHT MANAGED INCOME TRUST
Wright U.S. Treasury Fund 5.48%
Wright U.S. Treasury Near Term Fund 5.44%
Wright Total Return Bond Fund 5.14%
Wright Current Income Fund 6.30%
- -------------------------------------------------------------------
* according to the following formula:
6
Yield = 2 [ ( a-b + 1) - 1 ]
---
cd
<PAGE>
Where:
a = dividends and interest earned during the period.
b = expenses accrued for the period (after reductions).
c = the average daily number of accumulation units outstanding during the
period.
d = the maximum offering price per accumulation unit on the last day of the
period.
NOTE: "a" has been estimated for debt securities other than mortgage
certificates by dividing the year-end market value times the yield to maturity
by 360. "a" for mortgage securities, such as GNMA's, is the actual income
earned. Neither discount nor premium have been amortized.
"b" has been estimated by dividing the actual expense amounts for the year
by 360 or the number of days the' Fund was in existence.
Because each class of shares of each Fund bears its own fees and certain
expenses, the classes will have different performance results.
***
From time to time, quotations of Wright U.S. Treasury Money Market Fund's
yield and effective yield may be included in advertisements or communications to
shareholders. If a portion of the Fund's expenses had not been subsidized, the
Fund would have had lower returns. These performance figures are calculated in
the following manner:
A. Yield - the net annualized yield based on a specified 7-calendar days
calculated at simple interest rates. Yield is calculated by determining the net
change, exclusive of capital changes, in the value of a hypothetical
pre-existing account having a balance of one share at the beginning of the
period, subtracting a hypothetical charge reflecting deductions from
shareholders accounts, and dividing the difference by the value of the account
at the beginning of the base period to obtain the base period return. The yield
is annualized by multiplying the base period return by 365/7. The yield figure
is stated to the nearest hundredth of one percent. The yield of Wright U.S.
Treasury Money Market Fund for the seven-day period ended December 31, 1996 was
4.72%.
B. Effective Yield - the net annualized yield for a specified 7-calendar days
assuming a reinvestment of the yield or compounding. Effective yield is
calculated by the same method as yield except the annualized yield figure is
compounded by adding 1, raising the sum to a power equal to 365 divided by 7,
and subtracting one from the result, according to the following formula:
Effective Yield = [(Base Period Return + 1 )^365/7] - 1. The effective yield of
Wright U.S. Treasury Money Market Fund for the seven-day period ended December
31, 1996 was 4.83%.
As described above, yield and effective yield are based on historical
earnings and are not intended to indicate future performance. Yield and
effective yield will vary based on changes in market conditions and the level of
expenses.
A Fund's yield or total return may be compared to the Consumer Price Index
and various domestic securities indices. A Fund's yield or total return and
comparisons with these indices may be used in advertisements and in information
furnished to present or prospective shareholders.
From time to time, evaluations of a Fund's performance made by independent
sources may be used in advertisements and in information furnished to present or
prospective shareholders. The Lipper performance analysis includes the
reinvestment of dividends and capital gain distributions, but does not take
sales charges into consideration and is prepared without regard to tax
consequences.
The table on the next page shows the average annual total return of each
Fund for the one, five and ten-year periods ended December 31, 1997 and the
period from inception to December 31, 1997.
<PAGE>
<TABLE>
<CAPTION>
Period Ended 12/31/97 Inception To Inception
One Year Five Years Ten Years 12/31/97 Date
- ----------------------------------------------------------------------------------------------------------------------------
THE WRIGHT MANAGED EQUITY TRUST
<S> <C> <C> <C> <C> <C>
Wright Selected Blue Chip Equities Fund (1) 32.7% 15.1% 15.4% 14.0% 1/04/83
Wright Junior Blue Chip Equities Fund (2) 28.9% 13.9% 12.4% 11.6% 1/15/85
Wright Major Blue Chip Equities Fund (3) 33.9% 15.3% 15.6% 15.0% 7/22/85
Wright International Blue Chip Equities Fund(4) 1.5% 11.9% - 8.2% 9/14/89
THE WRIGHT MANAGED INCOME TRUST
Wright U.S. Treasury Fund (5) 9.1% 7.9% 9.4% 10.4% 7/25/83
Wright U.S. Treasury Near Term Fund (6) 5.9% 5.2% 7.0% 8.0% 7/25/83
Wright Total Return Bond Fund (7) 9.3% 6.9% 8.3% 9.8% 7/25/83
Wright Current Income Fund (8) 8.6% 6.5% 8.7% 8.5% 4/15/87
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) If a portion of the WBC's expenses had not been subsidized for the years
ended December 31, 1987, 1986 and 1984, the Fund would have had lower
returns.
(2) If a portion of the WJBC's expenses had not been subsidized during the years
ended December 31, 1996, 1995, 1987 and 1985, the Fund would have had lower
returns.
(3) If a portion of the WMBC's expenses had not been subsidized during the years
ended December 31, 1996, 1995, 1990, 1989, 1988, 1987 and 1985, the Fund
would have had lower returns.
(4) If a portion of the WIBC's expenses had not been reduced during the fisca
years ending December 31, 1990 and 1989, the Fund would have had lower
returns.
(5) If a portion of WUSTB's expenses had not been subsidized for the years ended
December 31, 1996, 1995, 1993, 1992, 1987,1985 and 1984, the Fund would have
had lower returns.
(6) If a portion of WNTB's expenses had not been subsidized during the year
ended December 31, 1987, the Fund would have had lower returns.
(7) If a portion of WTRB's expenses had not been subsidized during the five
years ended December 31,1989, the Fund would have had lower returns.
(8) If a portion of WCIF's expenses had not been subsidized during the five
years ended December 31,1991, the Fund would have had lower returns.
Taxes
In order to qualify as a regulated investment company for any taxable year
under the Internal Revenue Code of 1986, as amended (the "Code"), as described
in the Funds' prospectus, each Fund must meet certain requirements with respect
to the sources of its income, the diversification of its assets, and the
distribution of its income to shareholders. In satisfying these requirements,
each Feeder Fund will treat itself as owning its proportionate share of each of
its corresponding Portfolio's assets and as entitled to the income of that
Portfolio properly attributable to such share. Because each Feeder Fund invests
in its corresponding Portfolio, each Portfolio normally must satisfy the
applicable source of income and diversification requirements in order for the
Feeder Funds to satisfy them. Each Portfolio will allocate among its investors,
including the corresponding Feeder Fund, the Portfolio's net investment income,
net realized capital gains, and any other items of income, gain, loss, deduction
or credit in a manner intended to comply with the Code and applicable
regulations. Each Portfolio will make moneys available for withdrawal at
appropriate times and in sufficient amounts to enable the corresponding Feeder
Fund to satisfy the tax distribution requirements the Feeder Fund must satisfy
in order to avoid liability for federal income and/or excise tax.
As a partnership under the Code, each Portfolio does not pay federal income
or excise taxes. Each Portfolio also does not expect to be required to pay any
state income or corporate excise or franchise taxes in Massachusetts or New
York.
In order to avoid federal excise tax, each Fund must distribute (or be
deemed to have distributed) by December 31 of each year at least 98% of its
ordinary income for such year, at least 98% of the excess of its realized
capital gains over its realized capital losses for the one-year period ending on
October 31 of such year, after reduction by any available capital loss
carryforwards, and 100% of any income and capital gains from the prior year (as
previously computed) that was not paid out during such year and on which the
Fund paid no federal income tax.
As of December 31, 1997, the following Funds had capital loss
carryforwards, as determined for federal income tax purposes, of $22,706 (WTMM),
$18,251,100 (WNTB), $10,016 (USTB) and $1,046,783 (WCIF) which in varying
amounts expire between the years 1998 and 2005. These loss carryforwards will
reduce the applicable Fund's taxable income arising from future net realized
capital gains, if any, to the extent they are permitted to be used under the
Code and applicable Treasury regulations prior to their expiration dates, and
<PAGE>
thus will reduce the amounts of the future distributions to shareholders that
would otherwise be necessary in order to relieve that Fund of liability for
federal income tax.
Any dividends received deduction with respect to qualifying dividends
received from WBC, WJBC or WMBC will be reduced to the extent the shares with
respect to which the dividends are received are treated as debt-financed under
the Code and will be eliminated if the shares are deemed to have been held for
less than a minimum period, generally 46 days, which must be satisfied over a
prescribed period immediately before and after the shares become ex-dividend. In
particular cases, receipt of distributions qualifying for the deduction may
result in liability for the alternative minimum tax and/or, for "extraordinary
dividends," reduction of the tax basis (possibly requiring current recognition
of income to the extent such basis would otherwise be reduced below zero) of the
corporate shareholder's shares.
International Blue Chip Portfolio's transactions in certain foreign
currency options, futures or forward contracts will be subject to special tax
rules, the effect of which may be to accelerate income to WIBC, defer Fund
losses, cause adjustments in the holding periods of securities and convert
capital gains or losses into ordinary income or losses. These rules may
therefore affect the amount, timing and character of WIBC's distributions to
shareholders.
Certain foreign exchange gains or losses realized by the Portfolio and
allocated to WIBC may be treated as ordinary income and losses. Certain uses of
foreign currency and foreign currency contracts, and equity investments by
International Blue Chip Portfolio in certain "passive foreign investment
companies," may be limited, or in the latter case a tax election (if available)
may be made, in order to avoid the imposition of a tax on WIBC.
An Equity Fund may follow the tax accounting practice known as
equalization, which may affect the amount, timing and character of its
distributions to shareholders.
Special tax rules apply to IRA and other retirement plan accounts
(including penalties on certain distributions and other transactions) and to
other special classes of investors, such as tax-exempt organizations, banks or
insurance companies. Investors should consult their tax advisers for more
information.
Redemptions (including exchanges) and other dispositions of Fund shares in
transactions that are treated as sales for tax purposes will generally result in
the recognition of taxable gain or loss by shareholders that are subject to tax,
except in the case of WTMM (provided that WTMM has maintained a constant net
asset value). Shareholders should consult their own tax advisers with reference
to their individual circumstances to determine whether any particular
redemption, exchange or other disposition of Fund shares is properly treated as
a sale for tax purposes, as this discussion assumes. Any loss realized upon the
redemption, exchange or other sale of shares of a Fund with a tax holding period
of six months or less will be treated as a long-term capital loss to the extent
of any distributions of long-term capital gains designated as capital gain
dividends with respect to such shares. All or a portion of a loss realized upon
the redemption, exchange or other sale of Fund shares may be disallowed under
"wash sale" rules to the extent shares of the same Fund are purchased (including
shares acquired by means of reinvested dividends) within the period beginning 30
days before and ending 30 days after the date of such redemption, exchange or
other sale.
Financial Statements
The audited financial statements of, and the independent auditors' report
for the Funds and the Portfolios appear in the Funds' most recent annual report
to shareholders and are incorporated by reference into this Statement of
Additional Information. A copy of the Funds' annual report accompanies this
Statement of Additional Information.
Registrant incorporates by reference the audited financial information for
the Funds and the Portfolios for the fiscal year ended December 31, 1997 as
previously filed electronically with the Securities and Exchange Commission
(Accession Number 0000715165-98-000008).
<PAGE>
APPENDIX
===============================================================================
Wright Quality Ratings
Wright Quality Ratings provide the means by which the fundamental criteria
for the measurement of quality of an issuer's securities can be objectively
evaluated.
Each rating is based on 32 individual measures of quality grouped into four
components: (1) Investment Acceptance, (2) Financial Strength, (3) Profitability
and Stability, and (4) Growth. The total rating is three letters and a numeral.
The three letters measure (1) Investment Acceptance, (2) Financial Strength, and
(3) Profitability and Stability. Each letter reflects a composite measurement of
eight individual standards which are summarized as A: Outstanding, B: Excellent,
C: Good, D: Fair, L: Limited, and N: Not Rated. The numeral rating reflects
Growth and is a composite of eight individual standards ranging from 0 to 20.
Equity Securities
Investment Acceptance reflects the acceptability of a security by and its
marketability among investors, and the adequacy of the floating supply of its
common shares for the investment of substantial funds.
Financial Strength represents the amount, adequacy and liquidity of the
corporation's resources in relation to current and potential requirements. Its
principal components are aggregate equity and total capital, the ratio of
invested equity capital to debt, the adequacy of net working capital, its fixed
charges coverage ratio and other appropriate criteria.
Profitability and Stability measures the record of a corporation's
management in terms of (1) the rate and consistency of the net return on
shareholders' equity capital investment at corporate book value, and (2) the
profits or losses of the corporation during generally adverse economic periods,
including its ability to withstand adverse financial developments.
Growth per common share of the corporation's equity capital, earnings, and
dividends - rather than the corporation's overall growth of dollar sales and
income.
These ratings are determined by specific quantitative formulae. A
distinguishing characteristic of these ratings is that The Wright Investment
Committee must review and accept each rating. The Committee may reduce a
computed rating of any company, but may not increase it.
Debt Securities
Wright ratings for commercial paper, corporate bonds and bank certificates
of deposit consist of the two central positions of the four position
alphanumeric corporate equity rating. The two central positions represent those
factors which are most applicable to fixed income and reserve investments. The
first, Financial Strength, represents the amount, the adequacy and the liquidity
of the corporation's resources in relation to current and potential
requirements. Its principal components are aggregate equity and total capital,
the ratios of (a) invested equity capital, and (b) long-term debt, total of
corporate capital, the adequacy of net working capital, fixed charges coverage
ratio and other appropriate criteria. The second letter represents Profitability
and Stability and measures the record of a corporation's management in terms of:
(a) the rate and consistency of the net return on shareholders' equity capital
investment at corporate book value, and (b) the profits and losses of the
corporation during generally adverse economic periods, and its ability to
withstand adverse financial developments.
The first letter rating of the Wright four-part alphanumeric corporate
rating is not included in the ratings of fixed-income securities since it
primarily reflects the adequacy of the floating supply of the company's common
shares for the investment of substantial funds. The numeric growth rating is not
included because this element is identified only with equity investments.
A-1 and P-1 Commercial Paper Ratings
by S&P and Moody's
An S&P Commercial Paper Rating is a current assessment of the likelihood of
timely payment of debt having an original maturity of no more than 365 days.
`A': Issues assigned this highest rating are regarded as having the
greatest capacity for timely payment. Issues in this category are delineated
with the numbers 1, 2, and 3 to indicate the relative degree of safety. The
`A-1' designation indicates that the degree of safety regarding timely payment
is either overwhelming or very strong. Those issues determined to possess
overwhelming safety characteristics will be denoted with a plus (+) sign
designation.
<PAGE>
The commercial paper rating is not a recommendation to purchase or sell a
security. The ratings are based on current information furnished to Standard &
Poor's by the issuer or obtained from other sources it considers reliable. The
ratings may be changed, suspended or withdrawn as a result of changes in or
unavailability of such information.
Issuers (or related supporting institutions) rated P-1 by Moody's have a
superior capacity for repayment of short-term promissory obligations. P-1
repayment capacity will normally be evidenced by the following characteristics:
-- Leading market positions in well-established industries.
-- High rates of return on funds employed.
-- Conservative capitalization structures with moderate reliance on debt
and ample asset protection.
-- Broad margins in earnings coverage of fixed financial charges and high
internal cash generation.
-- Well-established access to a range of financial markets and assured
sources of alternate liquidity.
Bond Ratings
In addition to Wright quality ratings, bonds or bond insurers may be
expected to have credit risk ratings assigned by the two major rating companies,
Moody's and S&P. Moody's uses a nine-symbol system with Aaa being the highest
rating and C the lowest. S&P uses a 10-symbol system that ranges from AAA to D.
Bonds within the top four categories of Moody's (Aaa, Aa, A, and Baa) and of S&P
(AAA, AA, A, and BBB) are considered to be of investment-grade quality. Only the
top three grades are acceptable for the taxable income Funds. Note that both S&P
and Moody's currently give their highest rating to issuers insured by the
American Municipal Bond Assurance Corporation (AMBAC) or by the Municipal Bond
Investors Assurance Corporation (MBIA).
Bonds rated A by S&P have a strong capacity to pay principal and interest,
although they are somewhat more susceptible to the adverse effects of change in
circumstances and economic conditions than debt in higher- rated categories. The
rating of AA is accorded to issues where the capacity to pay principal and
interest is very strong and they differ from AAA issues only in small degree.
The AAA rating indicates an extremely strong capacity to pay principal and
interest.
Bonds rated A by Moody's are judged by Moody's to possess many favorable
investment attributes and are considered as upper medium grade obligations.
Bonds rated Aa by Moody's are judged by Moody's to be of high quality by all
standards. Together with the Aaa group they comprise what are generally known as
high-grade bonds. They are rated lower than Aaa bonds because margins of
protection may not be as large or fluctuations of protective elements may be of
greater degree or there may be other elements present which make the long-term
risks appear somewhat larger. Bonds rated Aaa by Moody's are judged to be of the
best quality. Interest payments are protected by a large or by an exceptionally
stable margin and principal is secure. While the various protective elements are
likely to change, such changes as can be visualized are most unlikely to impair
the fundamentally strong position of such issuers.
Note Ratings
In addition to Wright quality ratings, municipal notes and other short-term
loans may be assigned ratings by Moody's or Standard & Poor's. Moody's ratings
for municipal notes and other short- term loans are designated Moody's
Investment Grade (MIG). This distinction is in recognition of the differences
between short-term and long-term credit risk. Loans bearing the designation MIG
1 are of the best quality, enjoying strong protection by establishing cash flows
of funds for their servicing or by established and broad- based access to the
market for refinancing, or both. Loans bearing the designation MIG 2 are of high
quality, with margins of protection ample although not so large as in the
preceding group.
Standard & Poor's top ratings for municipal notes issued after July 29,
1984 are SP-1 and SP-2. The designation SP-1 indicates a very strong capacity to
pay principal and interest. A "+" is added for those issues determined to
possess overwhelming safety characteristics. An "SP-2" designation indicates a
satisfactory capacity to pay principal and interest.
<PAGE>
PART C
-------------------
Other Information
Item 24. Financial Statements and Exhibits
(a) Financial Statements
Included in Part A for the Funds listed below are "Financial
Highlights" for the period from the date indicated to the fiscal year
ended December 31, 1997:
Wright Selected Blue Chip Equities Fund (ten years ended December
31, 1997
Wright Junior Blue Chip Equities Fund (ten years ended December
31, 1997)
Wright Major Blue Chip Equities Fund (ten years ended December
31, 1997
Wright International Blue Chip Equities Fund (from commencement
of operations September 14, 1989 to December 31, 1997)
Incorporated by reference into Part B are the financial statements
contained in the Annual Report for the Funds, dated December 31, 1997
(which were previously filed electronically pursuant to Section
30(b)(2) of the Investment Company Act of 1940) Accession No.
0000715165-98-000008:
The Financial Statements contained in the Funds' Annual Report are as
follows:
Wright Major Blue Chip Equities Fund
Portfolio of Investments
Wright Selected Blue Chip Equities Fund
Wright Junior Blue Chip Equities Fund
Wright Major Blue Chip Equities Fund
Wright International Blue Chip Equities Fund
Statements of Assets and Liabilities
Statements of Operations
Statements of Changes in Net Assets
Financial Highlights
Notes to Financial Statements
Independent Auditors' Report
Also incorporated by reference into Part B are the following financial
statements of Selected Blue Chip Equities Portfolio, Junior Blue Chip
Equities Portfolio and International Blue Chip Equities Portfolio,
which are contained in the Annual Report dated December 31, 1997 of the
corresponding Funds:
Portfolio of Investments
Statements of Assets and Liabilities
Statements of Operations
Statements of Changes in Net Assets
Supplementary Data
Notes to Financial Statements
Independent Auditors' Report
(b) Exhibits:
(1) Amended and Restated Declaration of Trust dated April 28, 1997
filed as Exhibit No. (1) to Post-Effective Amendment No.
22 filed April 29, 1997 and incorporated herein by reference.
<PAGE>
(2) Amended and Restated By-Laws dated April 28, 1997 filed as
Exhibit No. (2) to Post-Effective Amendment No. 22 filed
April 29, 1997 and incorporated herein by reference.
(3) Not Applicable
(4) Not Applicable
(5) (a) Investment Advisory Contract dated December 21, 1987 with
The Winthrop Corporation d/b/a/ Wright Investors' Service
filed as Exhibit No. (5)(a) to Post-Effective Amendment No. 20
filed April 29, 1996 and incorporated herein by reference.
(b) Amended and Restated Administration Agreement with Eaton Vance
Management dated February 1, 1998 filed herewith as Exhibit
(5)(b).
(6) Distribution Contract between the Fund and MFBT Corporation
dated November 1, 1984 filed as Exhibit No. (6) to
Post-Effective Amendment No. 20 filed April 29, 1996 and
incorporated herein by reference.
(7) Not Applicable
(8) (a) Custodian Agreement with Investors Bank & Trust Company
dated December 19, 1990 filed as Exhibit (8)(a) to
Post-Effective Amendment No. 20 filed April 29, 1996 and
incorporated herein by reference.
(b) Amendment dated September 20, 1995 to Master Custodian
Agreement filed as Exhibit (8)(b) to Post-Effective Amendment
No. 20 filed April 29, 1996 and incorporated herein by
reference.
(9) (a) Transfer Agency Agreement dated June 9, 1989 filed as Exhibit
(9)(a) to Post-Effective Amendment No. 22 filed April
29, 1997 and incorporated herein by reference.
(b) Service Agreement dated February 1, 1996 between Wright
Investors' Service, Inc. and The Winthrop Corporation filed as
Exhibit (9) to Post-Effective Amendment No. 20 filed April 29,
1996 and incorporated herein by reference.
(c) Service Plan for Standard Shares and Institutional Shares
dated May 1, 1997 filed as Exhibit (9)(c) to Post-Effective
Amendment No. 22 filed April 29, 1997 and incorporated herein
by reference.
(10) Opinion of Counsel dated April 7, 1998 filed herewith.
(11) (a) Consent of Independent Auditors for Wright Major Blue Chip
Equities Fund filed herewith.
(b) Consent of Independent Auditors for Wright Selected Blue Chip
Equities Fund, Wright Junior Blue Chip Equities Fund and
Wright International Blue Chip Equities Fund filed herewith.
(12) Not Applicable
(13) Not Applicable
(14) Not Applicable
(15) Standard Shares Distribution Plan pursuant to Rule 12b-1 under the
Investment Company Act of 1940, dated May 1, 1997 filed as Exhibit
15(c) to Post-Effective Amendment No. 22 filed April 29, 1997 and
incorporated herein by reference.
(16) Schedule for Computation of Performance Quotations filed herewith.
(17) (a) Power of Attorney dated March 25, 1998 filed herewith.
(b) Power of Attorney of The Wright Blue Chip Master Portfolio
Trust dated March 18, 1997 filed as Exhibit (17)(b) to
Post-Effective Amendment No. 22 filed April 29, 1997 and
incorporated herein by reference.
(c) Power of Attorney of The Wright Blue Chip Master Portfolio
Trust dated March 25, 1998 filed herewith.
(18) Rule 18f-3 Plan dated May 1, 1997 for Standard and
Institutional Shares filed as Exhibit No. 18 to Post-Effective
Amendment No. 22 filed April 29, 1997 and incorporated herein by
reference.
<PAGE>
Item 25. Persons Controlled by or under Common Control with Registrant
Not Applicable
Item 26. Number of Holders of Securities
<TABLE>
<CAPTION>
Title of Class Number of Record Holders as of March 31, 1998
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Shares of Beneficial Interest Wright Selected Blue Chip Equities Fund - Standard Shares.................. 986
Wright Junior Blue Chip Equities Fund - Standard Shares.................... 746
Wright Major Blue Chip Equities Fund - Standard Shares..................... 219
Wright International Blue Chip Equities Fund -
Standard Shares................................................ 1,526
Institutional Shares........................................... 5
</TABLE>
Item 27. Indemnification
The Registrant's Amended and Restated By-Laws filed as Exhibit (2) to
Post-Effective Amendment No. 22 contain provisions limiting the liability, and
providing for indemnification, of the Trustees and officers under certain
circumstances.
Registrant's Trustees and officers are insured under a standard investment
company errors and omissions insurance policy covering loss incurred by reason
of negligent errors and omissions committed in their capacities as such.
Item 28. Business and Other Connections of Investment Adviser
Reference is made to the information set forth under the captions "Officers and
Trustees" and "Investment Advisory and Administrative Services" in the Statement
of Additional Information, which information is incorporated herein by
reference.
Item 29. Principal Underwriter
(a) Wright Investors' Service Distributors, Inc. (a wholly-owned
subsidiary of The Winthrop Corporation) acts as principal
underwriter for each of the investment companies named below.
The Wright Managed Blue Chip Series Trust
The Wright EquiFund Equity Trust
The Wright Managed Equity Trust
The Wright Managed Income Trust
Catholic Values Investment Trust
<TABLE>
<CAPTION>
(b) (1) (2) (3)
Name and Principal Positions and Officers Positions and Offices
Business Address with Principal Underwriter with Registrant
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
A. M. Moody III* President Vice President and Trustee
Peter M. Donovan* Vice President and Treasurer President and Trustee
Vincent M. Simko* Vice President and Secretary None
* Address is 1000 Lafayette Boulevard, Bridgeport, Connecticut 06604
</TABLE>
(c) Not Applicable
<PAGE>
Item 30. Location of Accounts and Records
All applicable accounts, books and documents required to be maintained by the
Registrant by Section 31(a) of the Investment Company Act of 1940 and the Rules
promulgated thereunder are in the possession and custody of the registrant's
custodian, Investors Bank & Trust Company, 200 Clarendon Street, Boston, MA
02116, and its transfer agent, First Data Investor Services Group, 4400 Computer
Drive, Westborough, MA 01581-5120, with the exception of certain corporate
documents and portfolio trading documents which are either in the possession and
custody of the Registrant's administrator, Eaton Vance Management, 24 Federal
Street, Boston, MA 02110 or of the investment adviser, Wright Investors'
Service, Inc., 1000 Lafayette Boulevard, Bridgeport, CT 06604. Registrant is
informed that all applicable accounts, books and documents required to be
maintained by registered investment advisers are in the custody and possession
of Registrant's administrator, Eaton Vance Management, or of the investment
adviser, Wright Investors' Service, Inc.
Item 31. Management Services
Not Applicable
Item 32. Undertakings
The Registrant undertakes to furnish to each person to whom a prospectus is
delivered a copy of the latest annual report to shareholders, upon request and
without charge.
<PAGE>
Signatures
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant certifies that it meets all of
the requirements for effectiveness of this Amendment to the Registration
Statement pursuant to Rule 485(b) under the Securities Act of 1933 and has duly
caused this Amendment to the Registration Statement to be signed on its behalf
by the undersigned, thereunto duly authorized, in the City of Boston, and the
Commonwealth of Massachusetts on the 28th day of April, 1998.
THE WRIGHT MANAGED EQUITY TRUST
By: Peter M. Donovan*
----------------------------------
Peter M. Donovan, President
Pursuant to the requirements of the Securities Act of 1933, this Post-Effective
Amendment to the Registration Statement has been signed below by the following
persons in the capacities indicated and on the 28th day of April, 1998.
SIGNATURE TITLE
- -------------------------------------------------------------------------------
Peter M. Donovan* President, Principal
- ------------------ Executive Officer & Trustee
Peter M. Donovan
James L. O'Connor* Treasurer, Principal
- ------------------ Financial and Accounting Officer
James L. O'Connor
H. Day Brigham, Jr.* Trustee
- ---------------------
H. Day Brigham, Jr.
Judith R. Corchard* Trustee
- ---------------------
Judith R. Corchard
Winthrop S. Emmet* Trustee
- ---------------------
Winthrop S. Emmet
Leland Miles* Trustee
- ---------------------
Leland Miles
A. M. Moody III* Trustee
- ---------------------
A. M. Moody III
Lloyd F. Pierce* Trustee
- ---------------------
Lloyd F. Pierce
Richard E. Taber* Trustee
- ---------------------
Richard E. Taber
Raymond Van Houtte* Trustee
- ---------------------
Raymond Van Houtte
* By /s/ Alan R. Dynner
- ------------------------
Alan R. Dynner
Attorney-in-Fact
<PAGE>
Signatures
The Wright Blue Chip Master Portfolio Trust has duly caused this
post-effective amendment No. 23 to the Registration Statement of The Wright
Managed Equity Trust (File No. 2-78047) to be signed on its behalf by the
undersigned, thereunto duly authorized, in the City of Boston and The
Commonwealth of Massachusetts on the 28th day of April, 1998.
THE WRIGHT BLUE CHIP
MASTER PORTFOLIO TRUST
By: Peter M. Donovan*
----------------------------------
Peter M. Donovan, President
This Post-Effective Amendment No. 23 to the Registration Statement of The
Wright Managed Equity Trust (File No. 2-78047) has been signed below by the
following persons in the capacities and on the 28th day of April, 1998.
SIGNATURE TITLE
- -------------------------------------------------------------------------------
Peter M. Donovan* President, Principal
- ------------------ Executive Officer & Trustee
Peter M. Donovan
James L. O'Connor* Treasurer, Principal
- ------------------- Financial and Accounting Officer
James L. O'Connor
H. Day Brigham, Jr.* Trustee
- --------------------
H. Day Brigham, Jr.
Judith R. Corchard* Trustee
- --------------------
Judith R. Corchard
Winthrop S. Emmet* Trustee
- --------------------
Winthrop S. Emmet
Leland Miles* Trustee
- --------------------
Leland Miles
A. M. Moody III* Trustee
- -------------------
A. M. Moody III
Lloyd F. Pierce* Trustee
- -------------------
Lloyd F. Pierce
Richard E. Taber* Trustee
- -------------------
Richard E. Taber
Raymond Van Houtte* Trustee
- -------------------
Raymond Van Houtte
* By /s/ Alan R. Dynner
- ------------------------
Alan R. Dynner
Attorney-in-Fact
<PAGE>
Exhibit Index
The following exhibits are filed as part of this Registration Statement
pursuant to General Instructions E of Form N-1A.
Page in
Sequential
Numbering
Exhibit No. Description System
- ------------------------------------------------------------------------------
(5) (b) Amended and RestatedAdministration Agreement with
Eaton Vance Management dated February 1,1998.
(10) Opinion of Counsel dated April 7, 1998.
(11) (a) Consent of Independent Auditors for Wright Major Blue Chip
Equities Fund
(11) (b) Consent of Independent Auditors for Wright Selected Blue Chip
Equities Fund, Wright Junior Blue Chip Equities Fund and
Wright International Blue Chip Equities Fund.
(16) Schedule for Computation of Performance Quotations.
(17) (a) Power of Attorney dated March 25, 1998.
(17) (c) Power of Attorney of The Wright Blue Chip Master Portfolio
Trust dated March 25, 1998.
- -------------------------------------------------------------------------------
THE WRIGHT MANAGED EQUITY TRUST
AMENDED AND RESTATED ADMINISTRATION AGREEMENT
AGREEMENT made this 1st day of February, 1998, by and between The Wright
Managed Equity Trust, a Massachusetts business trust (the "Trust"), on behalf of
the series of the Trust listed on Schedule A attached hereto, which may be
updated from time to time, and Eaton Vance Management, a Massachusetts business
trust (the "Administrator"):
1. DUTIES OF THE ADMINISTRATOR. The Trust hereby employs the Administrator
to administer the affairs of the Trust, subject to the supervision of the
Trustees of the Trust for the period and on the terms set forth in this
Agreement. The Administrator shall perform these duties with respect to any and
all series of shares ("Funds") which may be established by the Trustees pursuant
to the Declaration of Trust of the Trust and listed on Schedule A. Funds may be
terminated and additional Funds established from time to time by action of the
Trustees of the Trust.
The Administrator hereby accepts such employment, and agrees to administer
the Trust's business affairs and, in connection therewith, to furnish for the
use of the Trust office space and all necessary office facilities, equipment and
personnel for administering the affairs of the Trust, and to pay the salaries
and fees of all officers and Trustees of the Trust who are members of the
Administrator's organization and all personnel of the Administrator performing
management and administrative services for the Trust. The Administrator shall
for all purposes herein be deemed to be an independent contractor and shall,
except as otherwise expressly provided or authorized, have no authority to act
for or represent the Trust in any way or otherwise be deemed an agent of the
Trust.
2. COMPENSATION OF THE ADMINISTRATOR. For the services, payments and
facilities to be furnished hereunder by the Administrator, the Trust shall pay
to the Administrator on the last day of each month a fee equal (annually) to a
percentage of the average daily net assets of each Fund of the Trust throughout
the month, computed in accordance with the Declaration of Trust of the Trust and
any applicable votes of the Trustees of the Trust, as shown in Schedule B to
this Agreement.
In case of initiation or termination of the Agreement during any month with
respect to any Fund, the fee for that month shall be reduced proportionately on
the basis of the number of calendar days during which it is in effect and the
fee shall be computed upon the average net assets for the business days it is so
in effect for that month.
The Administrator may, from time to time, waive all or a part of the above
compensation.
3. ALLOCATION OF CHARGES AND EXPENSES. It is understood that the Trust will
pay all its expenses other than those expressly stated to be payable by the
Administrator hereunder, which expenses payable by the Trust shall include,
without implied limitation, (i) expenses of maintaining the Trust and continuing
its existence, (ii) registration of the Trust under the Investment Company Act
of 1940, (iii) commissions, fees and other expenses connected with the purchase
or sale of securities, (iv) auditing, accounting and legal expenses, (v) taxes
and interest, (vi) governmental fees, (vii) expenses of issue, sale, repurchase
and redemption of shares, (viii) expenses of registering and qualifying the
Trust and its shares under federal and state securities laws and of preparing
and printing prospectuses for such purposes and for distributing the same to
<PAGE>
-2-
shareholders and investors, and fees and expenses of registering and maintaining
registrations of the Trust and of the Trust's principal underwriter, if any, as
a broker-dealer or agent under state securities laws, (ix) expenses of reports
and notices to shareholders and of meetings of shareholders and proxy
solicitations therefor, (x) expenses of reports to governmental officers and
commissions, (xi) insurance expenses, (xii) association membership dues, (xiii)
fees, expenses and disbursements of custodians and subcustodians for all
services to the Trust (including without limitation safekeeping of funds and
securities, keeping of books and accounts and determination of net asset value),
(xiv) fees, expenses and disbursements of transfer agents, dividend disbursing
agents, shareholder servicing agents and registrars for all services to the
Trust, (xv) expenses for servicing shareholder accounts, (xvi) any direct
charges to shareholders approved by the Trustees of the Trust, (xvii)
compensation of and any expenses of Trustees of the Trust, (xviii) all payments
to be made and expenses to be assumed by the Trust pursuant to any one or more
distribution plans adopted by the Trust pursuant to Rule 12b-1 under the
Investment Company Act of 1940, (xix) the investment advisory fee payable to the
Trust's investment adviser, and (xx) such non-recurring items as may arise,
including expenses incurred in connection with litigation, proceedings and
claims and the obligation of the Trust to indemnify its Trustees and officers
with respect thereto.
4. OTHER INTERESTS. It is understood that Trustees, officers and
shareholders of the Trust are or may be or become interested in the
Administrator as trustees, officers, employees, shareholders or otherwise and
that trustees, officers, employees and shareholders of the Administrator are or
may be or become similarly interested in the Trust, and that the Administrator
may be or become interested in the Trust as a shareholder or otherwise. It is
also understood that trustees, officers, employees and shareholders of the
Administrator may be or become interested (as directors, trustees, officers,
employees, stockholders or otherwise) in other companies or entities (including,
without limitation, other investment companies) which the Administrator may
organize, sponsor or acquire, or with which it may merge or consolidate, and
that the Administrator or its subsidiaries or affiliates may enter into
advisory, management or administration agreements or other contracts or
relationship with such other companies or entities.
5. LIMITATION OF LIABILITY OF THE ADMINISTRATOR. The services of the
Administrator to the Trust are not to be deemed to be exclusive, the
Administrator being free to render services to others and engage in other
business activities. In the absence of willful misfeasance, bad faith, gross
negligence or reckless disregard of obligations or duties hereunder on the part
of the Administrator, the Administrator shall not be subject to liability to the
Trust or to any shareholder of the Trust for any act or omission in the course
of, or connected with, rendering services hereunder or for any losses which may
be sustained in the purchase, holding or sale of any security or other
instrument, including options and futures contracts.
6. DURATION AND TERMINATION OF THIS AGREEMENT. This Agreement shall become
effective upon the date of its execution, and, unless terminated as herein
provided, shall remain in full force and effect as to each Fund to and including
February 28, 1999 and shall continue in full force and effect as to each Fund
indefinitely thereafter, but only so long as such continuance after February 28,
1999 is specifically approved at least annually by the Trustees of the Trust.
Either party hereto may, at any time on sixty (60) days' prior written
notice to the other, terminate this Agreement as to any Fund, without the
payment of any penalty, by action of the Trustees of the Trust or the trustees
of the Administrator, as the case may be, and the Trust may, at any time upon
such written notice to the Administrator, terminate this Agreement as to any
Fund by vote of a majority of the outstanding voting securities of that Fund.
This Agreement shall terminate automatically in the event of its assignment.
<PAGE>
-3-
7. AMENDMENTS OF THE AGREEMENT. This Agreement may be amended as to any
Fund by a writing signed by both parties hereto, provided that no amendment to
this Agreement shall be effective until approved by the vote of a majority of
the Trustees of the Trust.
8. LIMITATION OF LIABILITY. The Administrator expressly acknowledges the
provision in the Declaration of Trust of the Trust limiting the personal
liability of shareholders of the Trust, and the Administrator hereby agrees that
it shall have recourse to the Trust for payment of claims or obligations as
between the Trust and the Administrator arising out of this Agreement and shall
not seek satisfaction from the shareholders or any shareholder of the Trust. No
Fund shall be liable for the obligations of any other Fund hereunder.
9. CERTAIN DEFINITIONS. The terms "assignment" and "interested persons"
when used herein shall have the respective meanings specified in the Investment
Company Act of 1940 as now in effect or as hereafter amended subject, however,
to such exemptions as may be granted by the Securities and Exchange Commission
by any rule, regulation or order. The term "vote of a majority of the
outstanding voting securities of that Fund" shall mean the vote of the lesser of
(a) 67 per centum or more of the shares of the particular Fund present or
represented by proxy at the meeting of the holders of more than 50 per centum of
the outstanding shares of the particular Fund are present or represented by
proxy at the meeting, or (b) more than 50 per centum of the outstanding shares
of the particular Fund.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed on the day and year first written above.
THE WRIGHT MANAGED EQUITY TRUST EATON VANCE MANAGEMENT
By: /s/ Peter M. Donovan By: /s/ Benjamin A. Rowland, Jr.
----------------------- -----------------------------
President Vice President,
and not individually
<PAGE>
-4-
THE WRIGHT MANAGED EQUITY TRUST
SCHEDULE A
February 1, 1998
Wright Selected Blue Chip Equities Fund
Wright Junior Blue Chip Equities Fund
Wright International Blue Chip Equities Fund
Wright Major Blue Chip Equities Fund
<PAGE>
-5-
THE WRIGHT MANAGED EQUITY TRUST
SCHEDULE B
February 1, 1998
<TABLE>
FEE STRUCTURE
-------------
FUND CLASS
Under Over Under Over
$100 Million $100 Million $100 Million $100 Million
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Wright Selected Blue Chip Equities Fund 0.02% 0.01% -- --
Wright Junior Blue Chip Equities Fund 0.02% 0.01% -- --
Wright International Blue Chip Equities Fund 0.02% 0.01% -- --
Wright Major Blue Chip Equities Fund 0.20% 0.05% 0.02% 0.01%
</TABLE>
HALE AND DORR LLP
Counsellors at Law
60 State Street, Boston, Massachusetts 02109
617-526-6000 o fax 617-526-5000
April 7, 1998
The Wright Managed Equity Trust
24 Federal Street
Boston, Massachusetts 02110
Ladies and Gentlemen:
The Wright Managed Equity Trust (the "Trust") is a Massachusetts business
trust created under a Declaration of Trust dated, executed and delivered in
Boston, Massachusetts on June 17, 1982, as amended and restated on November 1,
1984 and April 28, 1997, and as further amended from time to time (as so amended
and restated the "Declaration of Trust"). The beneficial interests thereunder
are represented by transferable shares of beneficial interest without par value.
The Trustees have the powers set forth in the Declaration of Trust, subject
to the terms, provisions and conditions therein provided. Pursuant to Article V,
Section 5.1 of the Declaration of Trust, the number of shares of beneficial
interest authorized to be issued under the Declaration of Trust is unlimited and
the Trustees are authorized to divide the shares into one or more series of
shares and one or more classes thereof as they deem necessary or desirable.
Pursuant to Article V, Section 5.4 of the Declaration of Trust, the Trustees are
empowered in their discretion to issue shares of any series for such
consideration, whether cash or other property, and on such terms as the Trustees
may determine (or for no consideration if pursuant to a share dividend or
split-up), all without action or approval of the shareholders. Pursuant to
Article V, Section 5.5 of the Declaration of Trust, the Trustees have
established four separate series of shares representing interests in each
investment portfolio referenced on Attachment A hereto.
The Trustees have voted to authorize the officers of the Trust to determine
the appropriate number of shares to be registered, to register with the
Securities and Exchange Commission, and to issue and sell to the public, such
shares.
We have examined the Declaration of Trust and By-Laws, each as amended from
time to time, of the Trust, resolutions of the Board of Trustees relating to the
authorization and issuance of shares of beneficial interest of the Trust, and
such other documents as we have deemed necessary or appropriate for the purposes
of this opinion, including, but not limited to, originals, or copies certified
WASHINGTON, DC BOSTON, MA LONDON, UK*
- --------------------------------------------------------------------------------
HALE AND DORR LLP INCLUDES PROFESSIONAL CORPORATIONS
*BROBECK HALE AND DORR INTERNATIONAL (AN INDEPENDENT JOINT VENTURE LAW FIRM)
<PAGE>
The Wright Managed Equity Trust
April 7, 1998
Page 2
or otherwise identified to our satisfaction, of such documents, Trust records
and other instruments. In our examination of the above documents, we have
assumed the genuineness of all signatures, the authenticity of all documents
submitted to us as originals and the conformity to original documents of all
documents submitted to us as certified of photostatic copies.
For purposes of this opinion letter, we have not made an independent review
of the laws of any state or jurisdiction other than The Commonwealth of
Massachusetts and express no opinion with respect to the laws of any
jurisdiction other than the laws of The Commonwealth of Massachusetts. Further,
we express no opinion as to compliance with any state or federal securities
laws, including the securities laws of The Commonwealth of Massachusetts.
Our opinion below, as it relates to the non-assessability of the shares of
the Trust, is qualified to the extent that under Massachusetts law, shareholders
of a Massachusetts business trust may be held personally liable for the
obligations of the Trust. In this regard, however, please be advised that the
Declaration of Trust disclaims shareholder liability for acts or obligations of
the Trust and permits notice of such disclaimer to be given in each written
obligation, contract, instrument, certificate, share, other security of the
Trust or a series therof or undertaking made or issued by the Trustees of the
Trust. Also, the Declaration of Trust provides for indemnification out of Trust
property for all loss and expense of any shareholder held personally liable for
the obligations of the Trust.
We are of the opinion that all necessary Trust action precedent to the
issuance of the shares of beneficial interest of the Trust has been duly taken,
and that all such shares may legally and validly be issued for among other
things, cash, and when sold will be, fully paid and non-assessable by the Trust
upon receipt by the Trust or its agent of consideration therefor in accordance
with terms described in the Trust's Declaration of Trust, subject to compliance
with the Securities Act of 1933, as amended, the Investment Company Act of 1940,
as amended, and the applicable state laws regulating the sale of securities.
We consent to your filing this opinion with the Securities and Exchange
Commission as an exhibit to any amendments to the Trust's registration statement
with the Commission. Except as provided in this paragraph, this opinion may not
be relied upon by, or filed with, any other parties or for any other purpose.
Very truly yours,
/s/Hale and Dorr LLP
Hale and Dorr LLP
<PAGE>
THE WRIGHT MANAGED EQUITY TRUST
ATTACHMENT A
Wright Major Blue Chip Equities Fund
Wright Selected Blue Chip Equities Fund
Wright Junior Blue Chip Equities Fund
Wright International Blue Chip Equities Fund
EXHIBIT 11(a)
Independent Auditors' Consent
We consent to the incorporation by reference in this Post-Effective
Amendement No. 23 to the Registration Statement (1933 Act File No. 2-78047) of
The Wright Managed Equity Trust of our report on the financial statements of The
Wright Major Blue Chip Equities Fund dated January 30, 1998 which is
incorporated by reference in the Statement of Additional Information which is
part of such Registration Statement.
We also consent to the reference to our firm under the caption
"Financial Highlights" in the Prospectus and under the caption "Financial
Statements" in the Statement of Additional Information of the Registration
Statement.
/s/ Deloitte & Touche LLP
DELOITTE & TOUCHE LLP
Boston, Massachusetts
April 28, 1998
EXHIBIT 11(b)
Independent Auditors' Consent
We consent to the incorporation by reference in this Post-Effective
Amendement No. 23 to the Registration Statement (1933 Act File No. 2-78047) of
The Wright Managed Equity Trust of our report on the financial statements of The
Wright Selected Blue Chip Equities Fund, Wright Junior Blue Chip Equities Fund
and Wright International Blue Chip Equities Fund dated January 30, 1998,
relating to the Funds referenced above, and of our report dated January 30,
1998, relating to Selected Blue Chip Equities Portfolio, Junior Blue Chip
Equities Portfolio and International Blue Chip Equities Portfolio, which reports
are included in the Annual Report to Shareholders for the year ended Decembe 31,
1997 which is incorporated by reference in the Statement of Additional
Information which is part of such Registration Statement.
We also consent to the reference to our firm under the caption
"Financial Highlights" in the Prospectus and under the caption "Financial
Statements" in the Statement of Additional Information of the Registration
Statement.
/s/ Deloitte & Touche LLP
DELOITTE & TOUCHE LLP
Boston, Massachusetts
April 28, 1998
EXHIBIT 16
The average annual total return of each Fund for the one, five and ten-year
periods ended December 31, 1997 and the period from inception to December 31,
1997 was as follows:
<TABLE>
<CAPTION>
Period Ended 12/31/97 Inception To Inception
1 Year 5 Years 10 Years 12/31/97 Date
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Wright Major Blue Chip Equities Fund 33.9% 15.3% 15.6% 15.0% 7/22/85
(formerly Wright Quality Core Equities Fund)
Wright Selected Blue Chip Equities Fund 32.7% 15.1% 15.4% 14.0% 1/04/83
Wright Junior Blue Chip Equities Fund 28.9% 13.9% 12.4% 11.6% 1/15/85
Wright International Blue Chip Equities Fund 1.5% 11.9% -- 8.2% 9/14/89
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Each Fund's yield is computed by dividing its net investment income per share
earned during a recent 30-day period by the maximum offering price (i.e. net
asset value) per share on the last day of the period and annualizing the
resulting figure. Net investment income per share is equal to the Fund's
dividends and interest earned during the period, with the resulting number being
divided by the average daily number of shares outstanding and entitled to
receive dividends during the period.
For the 30-day period ended December 31, 1997, the yield of each Fund was as
follows:
30-Day Period Ended
December 31, 1997*
- ------------------------------------------------------------------------------
Wright Major Blue Chip Equities Fund 0.32%
(formerly Wright Quality Core Equities Fund)
Wright Selected Blue Chip Equities Fund 0.21%
Wright Junior Blue Chip Equities Fund 0.44%
Wright International Blue Chip Equities Fund N/A
- ------------------------------------------------------------------------------
*: according to the following formula:
6
Yield = 2 [ ( a-b + 1 ) - 1 ]
---
cd
Where:
a = Dividends and interest earned during the period.
b = Expenses accrued for the period (after reductions).
c = The average daily number of accumulation units outstanding during
the period.
d = The maximum offering price per accumulation unit on the
last day of the period.
NOTE: "a" has been calculated for stocks by dividing the stated dividend
rate for each security held during the period by 360. "a" has been estimated for
debt securities other than mortgage certificates by dividing the year-end market
value times the yield to maturity by 360. "a" for mortgage securities, such as
GNMA's, is the actual income earned. Neither discount nor premium have been
amortized.
"b" has been estimated by dividing the actual expense amounts by 360 or the
number of days the Fund was in existence.
A Fund's yield or total return may be compared to the Consumer Price Index and
various domestic securities indices. A Fund's yield or total return and
comparisons with these indices may be used in advertisements and in information
furnished to present or prospective shareholders.
From time to time, evaluations of a Fund's performance made by independent
sources may be used in advertisements and in information furnished to present or
prospective shareholders. According to the rankings prepared by Lipper
Analytical Services, Inc., an independent service which monitors the performance
of mutual funds, the Lipper performance analysis includes the reinvestment of
dividends and capital gain distributions, but does not take sales charges into
consideration and is prepared without regard to tax consequences.
POWER OF ATTORNEY
We, the undersigned officers and Trustees of The Wright Managed Equity
Trust, a Massachusetts business trust, do hereby severally constitute and
appoint H. Day Brigham, Jr., Peter M. Donovan, Alan R. Dynner and A.M. Moody,
III, or any of them, to be true, sufficient and lawful attorneys, or attorney
for each of us, to sign for each of us, in the name of each of us in the
capacities indicated below, and any and all amendments (including post-effective
amendments) to the Registration Statement on Form N-1A filed by The Wright
Managed Equity Trust with the Securities and Exchange Commission in respect of
shares of beneficial interest and other documents and papers relating thereto.
IN WITNESS WHEREOF we have hereunto set our hands on the dates set opposite
our respective signatures.
Name Capacity Date
---- -------- ----
President, Principal
/s/ Peter M. Donovan Executive Officer and
- ------------------------ Trustee March 25, 1998
Peter M. Donovan
Treasurer and Principal
/s/ James L. O'Connor Financial and Accounting
- ------------------------ Officer March 25, 1998
James L. O'Connor
/s/ H. Day Brigham, Jr.
- ------------------------ Trustee March 25, 1998
H. Day Brigham, Jr.
/s/ Judith R. Corchard
- ------------------------ Trustee March 25, 1998
Judith R. Corchard
/s/ Winthrop S. Emmet
- ------------------------ Trustee March 25, 1998
Winthrop S. Emmet
/s/ Leland Miles
- ------------------------ Trustee March 25, 1998
Leland Miles
/s/ A.M. Moody, III
- ----------------------- Trustee March 25, 1998
A.M. Moody, III
/s/ Lloyd F. Pierce
- ----------------------- Trustee March 25, 1998
Lloyd F. Pierce
/s/ Richard E. Taber
- ----------------------- Trustee March 25, 1998
Richard E. Taber
/s/ Raymond Van Houtte
- ----------------------- Trustee March 25, 1998
Raymond Van Houtte
POWER OF ATTORNEY
The undersigned Trustee of The Wright Blue Chip Master Portfolio Trust, a
New York trust (the "Portfolio Trust"), does hereby constitute and appoint Peter
M. Donovan, A.M. Moody, III, Alan R. Dynner and H. Day Brigham, Jr., and each of
them acting singly, to be her true, sufficient and lawful attorneys, with full
power of substitution to each of them, and each of them acting singly, to sign
for her, in her name and in the capacities indicated below, (1) any and all
amendments to the Registration Statements on Form N-8A and Form N-1A to be filed
by the Portfolio Trust under the Investment Company Act of 1940, as amended (the
"1940 Act"), (2) any and all amendments to the Registration Statements on Form
N-1A of The Wright Managed Equity Trust and The Wright Managed Income Trust (the
"Investment Trusts") under the 1940 Act and the Securities Act of 1933, as
amended (the "1933 Act"), (3) the Registration Statement on Form N-1A of any
other registered investment company that is or will become a holder of an
interest in the Portfolio Trust (a "Holder"), (4) any Registration Statement on
Form N-14, and any and all amendments thereto, filed by the Portfolio Trust, the
Investment Trusts or any Holder and (5) any and all other documents and papers
relating thereto, and generally to do all such things in her name and on her
behalf in the capacities indicated below to enable the Portfolio Trust to comply
with the 1940 Act and the 1933 Act (where applicable) and all requirements of
the Securities and Exchange Commission thereunder, hereby ratifying and
confirming his signature as it may be signed by said attorneys or each of them
to any and all such documents.
IN WITNESS WHEREOF, I have hereunder set my hand on this Instrument on this
27th day of March, 1998.
/s/ Judith R. Corchard
---------------------------------
Judith R. Corchard
[ARTICLE] 6
[CIK] 0000703499
[NAME] WRIGHT MANAGED EQUITY TRUST
[SERIES]
[NUMBER] 1
[NAME] WRIGHT MAJOR BLUE CHIP EQUITIES FUND
<TABLE>
<S> <C>
[PERIOD-TYPE] 12-MOS
[FISCAL-YEAR-END] DEC-31-1997
[PERIOD-END] DEC-31-1997
[INVESTMENTS-AT-COST] 20,894,391
[INVESTMENTS-AT-VALUE] 27,192,219
[RECEIVABLES] 547,969
[ASSETS-OTHER] 0
[OTHER-ITEMS-ASSETS] 2,462
[TOTAL-ASSETS] 27,742,650
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 21,904
[TOTAL-LIABILITIES] 21,904
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 20,405,370
[SHARES-COMMON-STOCK] 2,305,856
[SHARES-COMMON-PRIOR] 0
[ACCUMULATED-NII-CURRENT] (195,049)
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 1,212,597
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 6,297,828
[NET-ASSETS] 27,720,746
[DIVIDEND-INCOME] 419,351
[INTEREST-INCOME] 28,622
[OTHER-INCOME] 0
[EXPENSES-NET] 272,180
[NET-INVESTMENT-INCOME] 175,793
[REALIZED-GAINS-CURRENT] 5,026,612
[APPREC-INCREASE-CURRENT] 2,153,640
[NET-CHANGE-FROM-OPS] 7,356,045
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 164,977
[DISTRIBUTIONS-OF-GAINS] 7,725,348
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 432,179
[NUMBER-OF-SHARES-REDEEMED] 847,964
[SHARES-REINVESTED] 648,550
[NET-CHANGE-IN-ASSETS] 1,905,631
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 118,332
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 371,323
[AVERAGE-NET-ASSETS] 25,865,822
[PER-SHARE-NAV-BEGIN] 12.45
[PER-SHARE-NII] 0.100
[PER-SHARE-GAIN-APPREC] 3.515
[PER-SHARE-DIVIDEND] (0.085)
[PER-SHARE-DISTRIBUTIONS] (3.960)
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 12.02
[EXPENSE-RATIO] 1.08
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000703499
[NAME] WRIGHT MANAGED EQUITY TRUST
[SERIES]
[NUMBER] 2
[NAME] WRIGHT SELECTED BLUE CHIP EQUITIES FUND
<TABLE>
<S> <C>
[PERIOD-TYPE] 12-MOS
[FISCAL-YEAR-END] DEC-31-1997
[PERIOD-END] DEC-31-1997
[INVESTMENTS-AT-COST] 183,542,015
[INVESTMENTS-AT-VALUE] 259,492,119
[RECEIVABLES] 18,770
[ASSETS-OTHER] 0
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 259,510,889
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 100,021
[TOTAL-LIABILITIES] 100,021
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 181,656,740
[SHARES-COMMON-STOCK] 13,511,126
[SHARES-COMMON-PRIOR] 0
[ACCUMULATED-NII-CURRENT] 927,887
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 876,137
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 75,950,104
[NET-ASSETS] 259,410,868
[DIVIDEND-INCOME] 3,983,307
[INTEREST-INCOME] 240,247
[OTHER-INCOME] (1,069,986)
[EXPENSES-NET] 1,421,899
[NET-INVESTMENT-INCOME] 1,731,669
[REALIZED-GAINS-CURRENT] 27,879,423
[APPREC-INCREASE-CURRENT] 35,733,719
[NET-CHANGE-FROM-OPS] 65,344,811
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 1,728,176
[DISTRIBUTIONS-OF-GAINS] 43,658,676
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 2,295,567
[NUMBER-OF-SHARES-REDEEMED] 2,586,053
[SHARES-REINVESTED] 2,057,801
[NET-CHANGE-IN-ASSETS] 51,245,287
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 437,112
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 1,421,899
[AVERAGE-NET-ASSETS] 230,974,640
[PER-SHARE-NAV-BEGIN] 17.73
[PER-SHARE-NII] 0.133
[PER-SHARE-GAIN-APPREC] 5.172
[PER-SHARE-DIVIDEND] (0.145)
[PER-SHARE-DISTRIBUTIONS] (3.690)
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 19.20
[EXPENSE-RATIO] 1.08
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000703499
[NAME] WRIGHT MANAGED EQUITY TRUST
[SERIES]
[NUMBER] 3
[NAME] WRIGHT JUNIOR BLUE CHIP EQUITIES FUND
<TABLE>
<S> <C>
[PERIOD-TYPE] 12-MOS
[FISCAL-YEAR-END] DEC-31-1997
[PERIOD-END] DEC-31-1997
[INVESTMENTS-AT-COST] 30,002,021
[INVESTMENTS-AT-VALUE] 33,489,338
[RECEIVABLES] 18,417
[ASSETS-OTHER] 0
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 33,507,755
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 18,021
[TOTAL-LIABILITIES] 18,021
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 30,138,731
[SHARES-COMMON-STOCK] 3,195,403
[SHARES-COMMON-PRIOR] 0
[ACCUMULATED-NII-CURRENT] (378,344)
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 242,030
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 3,487,317
[NET-ASSETS] 33,489,734
[DIVIDEND-INCOME] 234,332
[INTEREST-INCOME] 36,040
[OTHER-INCOME] 61,112
[EXPENSES-NET] 145,360
[NET-INVESTMENT-INCOME] 63,900
[REALIZED-GAINS-CURRENT] 2,787,813
[APPREC-INCREASE-CURRENT] 547,419
[NET-CHANGE-FROM-OPS] 3,399,132
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 56,986
[DISTRIBUTIONS-OF-GAINS] 2,548,114
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 2,059,302
[NUMBER-OF-SHARES-REDEEMED] 649,566
[SHARES-REINVESTED] 202,275
[NET-CHANGE-IN-ASSETS] 19,461,034
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 24,483
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 183,640
[AVERAGE-NET-ASSETS] 18,060,749
[PER-SHARE-NAV-BEGIN] 8.86
[PER-SHARE-NII] 0.160
[PER-SHARE-GAIN-APPREC] 2.380
[PER-SHARE-DIVIDEND] (0.035)
[PER-SHARE-DISTRIBUTIONS] (0.885)
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 10.48
[EXPENSE-RATIO] 1.18
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000703499
[NAME] WRIGHT MANAGED EQUITY TRUST
[SERIES]
[NUMBER] 4
[NAME] WRIGHT INTl. BLUE CHIP EQUITIES FUND-STANDARD SHS.
<TABLE>
<S> <C>
[PERIOD-TYPE] 12-MOS
[FISCAL-YEAR-END] DEC-31-1997
[PERIOD-END] DEC-31-1997
[INVESTMENTS-AT-COST] 204,018,416
[INVESTMENTS-AT-VALUE] 257,046,609
[RECEIVABLES] 828,779
[ASSETS-OTHER] 0
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 257,875,388
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 83,340
[TOTAL-LIABILITIES] 83,340
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 205,665,223
[SHARES-COMMON-STOCK] 13,273,865
[SHARES-COMMON-PRIOR] 0
[ACCUMULATED-NII-CURRENT] 1,086,985
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 1,163,776
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 53,028,193
[NET-ASSETS] 212,697,647
[DIVIDEND-INCOME] 6,196,687
[INTEREST-INCOME] 325,110
[OTHER-INCOME] (2,407,586)
[EXPENSES-NET] 1,950,329
[NET-INVESTMENT-INCOME] 2,163,882
[REALIZED-GAINS-CURRENT] 15,148,710
[APPREC-INCREASE-CURRENT] 12,233,865
[NET-CHANGE-FROM-OPS] 5,078,727
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 1,527,735
[DISTRIBUTIONS-OF-GAINS] 15,430,128
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 6,878,669
[NUMBER-OF-SHARES-REDEEMED] 10,434,522
[SHARES-REINVESTED] 726,800
[NET-CHANGE-IN-ASSETS] (50,302,381)
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 716,225
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 1,950,329
[AVERAGE-NET-ASSETS] 259,089,206
[PER-SHARE-NAV-BEGIN] 16.69
[PER-SHARE-NII] 0.266
[PER-SHARE-GAIN-APPREC] (0.033)
[PER-SHARE-DIVIDEND] (0.163)
[PER-SHARE-DISTRIBUTIONS] (0.740)
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 16.02
[EXPENSE-RATIO] 1.31
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000703499
[NAME] WRIGHT MANAGED EQUITY TRUST
[SERIES]
[NUMBER] 4
[NAME] WRIGHT INTL. BLUE CHIP EQUITIES FUND - INSTITUTIONAL SHS.
<TABLE>
<S> <C>
[PERIOD-TYPE] 12-MOS
[FISCAL-YEAR-END] DEC-31-1997
[PERIOD-END] DEC-31-1997
[INVESTMENTS-AT-COST] 204,018,416
[INVESTMENTS-AT-VALUE] 257,046,609
[RECEIVABLES] 828,779
[ASSETS-OTHER] 0
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 257,875,388
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 83,340
[TOTAL-LIABILITIES] 83,340
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 205,665,223
[SHARES-COMMON-STOCK] 4,936,568
[SHARES-COMMON-PRIOR] 0
[ACCUMULATED-NII-CURRENT] 1,086,985
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 1,163,776
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 53,028,193
[NET-ASSETS] 45,094,401
[DIVIDEND-INCOME] 6,196,687
[INTEREST-INCOME] 325,110
[OTHER-INCOME] 0
[EXPENSES-NET] 1,950,329
[NET-INVESTMENT-INCOME] 2,163,882
[REALIZED-GAINS-CURRENT] 15,148,710
[APPREC-INCREASE-CURRENT] 12,233,865
[NET-CHANGE-FROM-OPS] 5,078,727
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 0
[DISTRIBUTIONS-OF-GAINS] 1,107,228
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 4,814,034
[NUMBER-OF-SHARES-REDEEMED] 82
[SHARES-REINVESTED] 122,616
[NET-CHANGE-IN-ASSETS] 49,157,706
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 716,225
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 1,950,329
[AVERAGE-NET-ASSETS] 41,170,078
[PER-SHARE-NAV-BEGIN] 10.00
[PER-SHARE-NII] 0.006
[PER-SHARE-GAIN-APPREC] (0.640)
[PER-SHARE-DIVIDEND] 0
[PER-SHARE-DISTRIBUTIONS] (0.230)
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 9.13
[EXPENSE-RATIO] 0.16
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0001038175
[NAME] WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
[SERIES]
[NUMBER] 1
[NAME] WRIGHT SELECTED BLUE CHIP EQUITIES PORTFOLIO
<TABLE>
<S> <C>
[PERIOD-TYPE] 12-MOS
[FISCAL-YEAR-END] DEC-31-1997
[PERIOD-END] DEC-31-1997
[INVESTMENTS-AT-COST] 182,448,012
[INVESTMENTS-AT-VALUE] 258,398,117
[RECEIVABLES] 1,072,401
[ASSETS-OTHER] 26,580
[OTHER-ITEMS-ASSETS] 3,139
[TOTAL-ASSETS] 295,500,237
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 8,106
[TOTAL-LIABILITIES] 8,106
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 183,542,026
[SHARES-COMMON-STOCK] 0
[SHARES-COMMON-PRIOR] 0
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 0
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 75,950,105
[NET-ASSETS] 259,492,131
[DIVIDEND-INCOME] 2,639,245
[INTEREST-INCOME] 179,063
[OTHER-INCOME] 0
[EXPENSES-NET] 1,069,986
[NET-INVESTMENT-INCOME] 1,748,322
[REALIZED-GAINS-CURRENT] 19,731,212
[APPREC-INCREASE-CURRENT] 30,193,816
[NET-CHANGE-FROM-OPS] 51,673,350
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 0
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 0
[NUMBER-OF-SHARES-REDEEMED] 0
[SHARES-REINVESTED] 0
[NET-CHANGE-IN-ASSETS] 259,492,121
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 1,019,152
[INTEREST-EXPENSE] 12
[GROSS-EXPENSE] 1,069,986
[AVERAGE-NET-ASSETS] 241,801,059
[PER-SHARE-NAV-BEGIN] 0
[PER-SHARE-NII] 0
[PER-SHARE-GAIN-APPREC] 0
[PER-SHARE-DIVIDEND] 0
[PER-SHARE-DISTRIBUTIONS] 0
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 0
[EXPENSE-RATIO] 0.66
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0001038175
[NAME] WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
[SERIES]
[NUMBER] 2
[NAME] WRIGHT JUNIOR BLUE CHIP EQUITIES PORTFOLIO
<TABLE>
<S> <C>
[PERIOD-TYPE] 12-MOS
[FISCAL-YEAR-END] DEC-31-1997
[PERIOD-END] DEC-31-1997
[INVESTMENTS-AT-COST] 30,458,268
[INVESTMENTS-AT-VALUE] 33,945,587
[RECEIVABLES] 39,911
[ASSETS-OTHER] 26,581
[OTHER-ITEMS-ASSETS] 2,781
[TOTAL-ASSETS] 34,014,860
[PAYABLE-FOR-SECURITIES] 493,763
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 31,746
[TOTAL-LIABILITIES] 525,509
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 30,002,032
[SHARES-COMMON-STOCK] 0
[SHARES-COMMON-PRIOR] 0
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 0
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 3,487,319
[NET-ASSETS] 33,489,351
[DIVIDEND-INCOME] 166,665
[INTEREST-INCOME] 29,900
[OTHER-INCOME] 0
[EXPENSES-NET] 61,112
[NET-INVESTMENT-INCOME] 135,453
[REALIZED-GAINS-CURRENT] 1,729,605
[APPREC-INCREASE-CURRENT] 1,275,330
[NET-CHANGE-FROM-OPS] 3,140,388
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 0
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 0
[NUMBER-OF-SHARES-REDEEMED] 0
[SHARES-REINVESTED] 0
[NET-CHANGE-IN-ASSETS] 33,489,341
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 74,633
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 109,531
[AVERAGE-NET-ASSETS] 20,383,843
[PER-SHARE-NAV-BEGIN] 0
[PER-SHARE-NII] 0
[PER-SHARE-GAIN-APPREC] 0
[PER-SHARE-DIVIDEND] 0
[PER-SHARE-DISTRIBUTIONS] 0
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 0
[EXPENSE-RATIO] 0.48
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0001038175
[NAME] WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
[SERIES]
[NUMBER] 3
[NAME] WRIGHT INTERNATIONAL BLUE CHIP EQUITIES PORTFOLIO
<TABLE>
<S> <C>
[PERIOD-TYPE] 12-MOS
[FISCAL-YEAR-END] DEC-31-1997
[PERIOD-END] DEC-31-1997
[INVESTMENTS-AT-COST] 210,988,177
[INVESTMENTS-AT-VALUE] 264,023,866
[RECEIVABLES] 10,783,356
[ASSETS-OTHER] 26,580
[OTHER-ITEMS-ASSETS] 4,460
[TOTAL-ASSETS] 274,838,262
[PAYABLE-FOR-SECURITIES] 14,668,424
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 3,123,218
[TOTAL-LIABILITIES] 17,791,642
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 204,018,428
[SHARES-COMMON-STOCK] 0
[SHARES-COMMON-PRIOR] 0
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 0
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 53,028,192
[NET-ASSETS] 257,046,620
[DIVIDEND-INCOME] 3,695,020
[INTEREST-INCOME] 206,116
[OTHER-INCOME] (441,511)
[EXPENSES-NET] 1,685,691
[NET-INVESTMENT-INCOME] 1,773,934
[REALIZED-GAINS-CURRENT] 14,916,066
[APPREC-INCREASE-CURRENT] (6,279,704)
[NET-CHANGE-FROM-OPS] 10,410,296
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 0
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 0
[NUMBER-OF-SHARES-REDEEMED] 0
[SHARES-REINVESTED] 0
[NET-CHANGE-IN-ASSETS] 257,046,610
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 1,441,589
[INTEREST-EXPENSE] 8,075
[GROSS-EXPENSE] 1,685,691
[AVERAGE-NET-ASSETS] 279,166,667
[PER-SHARE-NAV-BEGIN] 0
[PER-SHARE-NII] 0
[PER-SHARE-GAIN-APPREC] 0
[PER-SHARE-DIVIDEND] 0
[PER-SHARE-DISTRIBUTIONS] 0
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 0
[EXPENSE-RATIO] 0.90
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
