AS FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION ON APRIL 24, 1995.
1933 ACT FILE NO. 2-81915
1940 ACT FILE NO. 811-3668
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N--1A
REGISTRATION STATEMENT
UNDER
SECURITIES ACT OF 1933 |X|
POST-EFFECTIVE AMENDMENT NO. 19 |X|
REGISTRATION STATEMENT
UNDER
THE INVESTMENT COMPANY ACT OF 1940 |X|
AMENDMENT NO. 21 |X|
THE WRIGHT MANAGED INCOME TRUST
(FORMERLY THE WRIGHT MANAGED BOND 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)
H. DAY BRIGHAM, JR.
24 FEDERAL STREET, BOSTON, MASSACHUSETTS 02110
(Name and Address of Agent for Service)
It is proposed that this filing will become effective on May 1, 1995
pursuant to paragraph (b) of Rule 485.
The exhibit index required by Rule 483(a) under the Securities Act of 1933
is located on page _____ in the sequential numbering system of the manually
signed copy of this Registration Statement.
<TABLE>
CALCULATION OF REGISTRATION FEE
- -----------------------------------------------------------------------------------------------------------------------------
Amount of Proposed Maximum Proposed Aggregate Amount of
Title of Securities Shares Being Offering Price Maximum Registration
Being Registered Registered Per Share Offering Price Fee
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares of beneficial interest 20,416,158 $10.86(1) $221,719,471(2) $100
</TABLE>
(1) Computed under Rule 457(d) on the basis of the maximum aggregate offering
price per share at the close of business on April 10, 1995.
(2) Registrant elects to calculate the maximum aggregate offering price pursuant
to Rule 24e-2. $565,297,313 of shares were redeemed during the fiscal year
ended December 31, 1994. $343,867,842 of shares were used for reductions
pursuant to Paragraph (c) of Rule 24f-2 during such fiscal year.
$221,429,471 of shares redeemed are being used for the reduction of the
registration fee in this Amendment. While no fee is required for the
$221,429,471 of shares, the Registrant has elected to register, for $100, an
additional $290,000 of shares.
Pursuant to Rule 24f-2 under the Investment Company Act of 1940, Registrant
has registered an indefinite number of securities under the Securities Act of
1933. Registrant filed a Rule 24f-2 Notice for the fiscal year ended December
31, 1994 on February 17, 1995. Registrant continues its election to register an
indefinite number of shares of beneficial interest pursuant to Rule 24f-2 under
the Investment Company Act of 1940, as amended.
<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 Prospectus of Wright U.S. Treasury Money Market Fund
The Prospectus of:
Wright Government Obligations Fund
Wright Near Term Bond Fund
Wright Total Return Bond Fund
Wright Insured Tax Free Bond Fund
Wright Current Income Fund
Part B -- Statement of Additional Information of Wright U.S. Treasury
Money Market Fund
Statement of Additional Information of:
Wright Government Obligations Fund
Wright Near Term Bond Fund
Wright Total Return Bond Fund
Wright Insured Tax Free Bond Fund
Wright Current Income Fund
Part C -- Other Information
Signatures
Exhibit Index Required by Rule 483(a) under the Securities Act of 1933
Exhibits
<PAGE>
THE WRIGHT MANAGED INCOME TRUST
Wright Government Obligations Fund, Wright Near Term Bond Fund,
Wright Total Return Bond Fund, Wright Insured Tax Free Bond Fund,
Wright Current Income 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 and Yield Information
4....................... An Introduction to the Funds, The Funds and Their
Investment Objectives and Policies-- Other Investment
Policies, Special Investment Considerations, Other
Information
5....................... The Investment Adviser, The Administrator,
Distribution Expenses, Back Cover
5(a).................... Not Applicable
6....................... Other Information, Distributions by the Funds, Taxes
7....................... Who May Purchase Shares And What Is A "Participating
Trust Department," How to Buy Shares, How the Funds
Value Their Shares, How Shareholder Accounts Are
Maintained, 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....................... General Information and History
13....................... Investment Objectives and Policies,
Investment Restrictions, Appendix
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....................... Fund Shares and Other Securities
19....................... How to Buy Shares, How to Redeem or Sell Purchase, Exchange, Redemption,
Shares, How the Funds Value Their Shares and Pricing of Shares
20....................... Taxes
21....................... Principal Underwriter
22....................... Calculation of Performance and Yield
Quotations
23....................... Financial Statements
</TABLE>
<PAGE>
THE WRIGHT MANAGED INCOME TRUST
Wright U.S. Treasury Money Market 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 and Yield Information
4........................ An Introduction to the Fund, The Fund's Investment
Objectives and Policies, Other Investment Policies,
Special Investment Considerations, Other Information
5........................ The Investment Adviser, The Administrator, Back Cover
5(a)..................... Not Applicable
6........................ Other Information, Distributions by the Fund, Taxes
7........................ How to Buy Shares, How the Fund Values Its Shares, How
Shareholder Accounts Are Maintained, 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....................... General Information and History
13....................... Investment Objectives and Policies, Investment
Restrictions, Appendix
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....................... Fund Shares and Other Securities
19....................... How to Buy Shares, How to Redeem or Purchase, Exchange, Redemption,
Sell Shares, How the Funds Value Their and Pricing of Shares
Shares
20....................... Taxes
21....................... Principal Underwriter
22....................... Calculation of Yield Quotations
23....................... Financial Statements
</TABLE>
<PAGE>
PART A
------------------------------------
INFORMATION REQUIRED IN A PROSPECTUS
P R O S P E C T U S MAY 1, 1995
- -------------------------------------------------------------------------------
THE WRIGHT MANAGED INCOME TRUST
A MUTUAL FUND CONSISTING OF FIVE SERIES, OR FUNDS,
SEEKING A HIGH LEVEL OF RETURN
- -------------------------------------------------------------------------------
WRIGHT GOVERNMENT OBLIGATIONS FUND
WRIGHT NEAR TERM BOND FUND
WRIGHT TOTAL RETURN BOND FUND
WRIGHT INSURED TAX-FREE BOND FUND
WRIGHT CURRENT INCOME FUND
Write To: THE WRIGHT MANAGED INVESTMENT FUNDS, BOS 725, BOX 1559,
BOSTON, MA 02104
Or Call: THE FUND ORDER ROOM -- (800) 225-6265
- -------------------------------------------------------------------------------
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, 1995 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).
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.
TABLE OF CONTENTS
PAGE
An Introduction To The Funds...................... 2
Shareholder And Fund Expenses..................... 4
Financial Highlights.............................. 5
Performance And Yield Information................. 10
The Funds And Their Investment Objectives And
Policies ........................................ 10
Wright Government Obligations Fund (WGOF)....... 10
Wright Near Term bond Fund (WNTB)............... 10
Wright Total Return Bond Fund (WTRB)............ 11
Wright Insured Tax-Free Bond Fund (WTFB)........ 11
Wright Current Income Fund (WCIF)............... 12
Other Investment Policies......................... 12
Special Investment Considerations................. 13
The Investment Adviser............................ 15
The Administrator................................. 17
Distribution Expenses............................. 18
Who May Purchase Fund Shares And What Is A
"Participating Trust Department".................. 19
How The Funds Value Their Shares.................. 19
How To Buy Shares................................. 20
How Shareholder Accounts Are Maintained........... 21
Distributions By The Funds........................ 21
Taxes............................................. 22
How To Exchange Shares............................ 25
How To Redeem Or Sell Shares...................... 25
Other Information................................. 27
Tax-Sheltered Retirement Plans.................... 28
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 IN THIS PROSPECTUS.
The Trust................The Wright Managed Income Trust
(the "Trust") is an open-end investment management
company known as a mutual fund, is registered under the
Investment Company Act of 1940, as amended, and
consists of six series (the "Funds") including one
series that is being offered under a separate
prospectus. Each Fund is a diversified fund and
represents a separate and distinct series of the
Trust's shares of beneficial interest.
Investment...............Each Fund seeks to provide a high level of return
Objective consistent with the quality standards and average
maturity for such Fund.
The Funds................WRIGHT GOVERNMENT OBLIGATIONS FUND (WGOF) invests in
U.S.Treasury Bills, notes and bonds and may invest
in other obligations of the U.S. Government and its
agencies which are directly guaranteed as to principal
and income by the full faith and credit of the U.S.
Government.The Fund will not invest in mortgage-related
securities. The Fund is expected to maintain an average
maturity of from 10 to 30 years. See page 10.
WRIGHT NEAR TERM BOND FUND (WNTB) invests in U.S.
Government obligations, such as U.S. Treasury bills,
notes and bonds, with an average maturity of less than
five years. See page 10.
WRIGHT TOTAL RETURN BOND FUND (WTRB) invests in
high-quality bonds or other debt securities of varying
maturities which will, in the Investment Adviser's
opinion, achieve the best total return of ordinary
income plus capital appreciation. Accordingly,
investment selections and maturities will differ
depending on the particular phase of the interest rate
cycle. See page 11.
WRIGHT INSURED TAX-FREE BOND FUND (WTFB) invests
primarily in high-grade municipal bonds and other
intermediate or long-term securities that provide
interest income which is exempt from Federal income
taxes and which are covered by insurance guaranteeing
the timely payment of principal and interest. The
portfolio will have an average weighted maturity that
produces the best compromise between generous return
and stability of principal. See page 11.
WRIGHT CURRENT INCOME FUND (WCIF) invests in debt
obligations issued or guaranteed by the U.S. Government
or any of its agencies, especially mortgage-related
securities of the Government National Mortgage
Association (GNMA). The Fund reinvests all principal
payments. See page 12 and "Special Investment
Considerations - Mortgage-Related Securities" page 14.
The Investment...........Each Fund has engaged Wright Investors' Service, 1000
Adviser Lafayette Boulevard, Bridgeport, CT 06604 ("Wright"
or the "Investment Adviser") as investment adviser
to carry out the investment and reinvestment of the
Fund's assets.
The Administrator........Each Fund also has retained Eaton Vance Management
("Eaton Vance" or the "Administrator"), 24 Federal
Street, Boston, MA 02110 as administrator to manage the
Fund's legal and business affairs.
<PAGE>
The Distributor..........Wright Investors' Service Distributors, Inc. is the
Distributor of the Fund's shares and receives a
distribution fee equal on an annual basis to 2/10 of 1%
of each Fund's average daily net assets.
Who May Purchase.........The Funds were established to provide diversified
Fund Shares investment opportunities for investment portfolios
managed or serviced by participating bank trust
departments and certain other institutions which are
clients of Wright ("Participating Trust Departments").
Shares of the Funds offered under this Prospectus are
not available to the public except through these
Participating Trust Departments.
How to Purchase..........Shares of each Fund are sold without a sales charge at
Fund Shares the net asset value next determined after receipt of
a purchase order. The minimum initial investment is
$1,000 which can be waived for investments in 401(k)
tax-sheltered retirement plans.There is no minimum for
subsequent purchases. Shares also may be purchased
through an exchange of securities. See
"How to Buy Shares."
Distribution ............Any net investment income earned by the Funds will be
Options declared daily and distributed monthly. Distributions
of net short-term and long-term capital gains will be
made at least annually. Distributions including
dividends are paid in additional shares at net asset
value or cash as the shareholder elects. Unless the
shareholder has elected to receive dividends and
distributions in cash, dividends and distributions will
be reinvested in additional shares of the Fund at net
asset value per share as of the investment date.
Redemptions..............Shares may be redeemed at the net asset value next
determined after receipt of the redemption request
in good order. See "How to Redeem or Sell Shares."
Exchange ................Shares of the Fund may be exchanged for shares of
Privilege certain other Funds managed by the Investment Adviser
at the net asset value next determined after receipt
of the exchange request. See "How to Exchange Shares."
Net Asset Value..........Net asset value is calculated on
each day the New York Stock Exchange is open for
trading.
Taxation.................Each Fund has elected to be treated, has qualified and
intends to continue to qualify each year as a regulated
investment company under Subchapter M of the Internal
Revenue Code and, consequently, should not be liable
for federal income tax on net investment income and net
realized capital gains that are distributed to
shareholders in accordance with applicable timing
requirements.
Shareholder..............Each shareholder will receive annual and semi-annual
Communications 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.
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 THE TRUST
HAVE CONSIDERED THIS IN SHAREHOLDER AND FUND EXPENSES -- PROSPECTUS. THE WRIGHT
MANAGED INCOME TRUST.
<PAGE>
SHAREHOLDER AND FUND EXPENSES --
THE WRIGHT MANAGED INCOME TRUST
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 are based on actual amounts incurred for
the fiscal year ended December 31, 1994, except as noted.
<TABLE>
<CAPTION>
Wright Wright Wright Wright Wright
Government Near Term Total Return Insured Tax-Free Current
Obligations Fund Bond Fund Bond Fund Bond Fund Income Fund
(WGOF) (WNTB) (WTRB) (WTFB) (WCIF)
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Shareholder Transaction Expenses None None None None None
Annualized Fund Operating Expenses after expense allocations
and fee reductions (as a percentage of average net assets)
Investment Adviser Fee (after fee reduction) 0.40% 0.44% 0.43% 0.19% 0.40%
Rule 12b-1 Distribution Expense
(after expense reduction) 0.03% 0.20% 0.20% 0.00% 0.20%
Other Expenses (including administration fee)[1] 0.47% 0.11% 0.14% 0.71% 0.22%
---- ---- ---- ---- ----
Total Operating Expenses* 0.90% 0.75% 0.77% 0.90% 0.82%
- ------------------------------------------------------------------------------------------------------------------------------
<FN>
[1]Administration fees were as follows: 0.10% for WGOF, WTFB and WCIF; 0.06% for WNTB; and 0.07% for WTRB.
* If there had been no reduction of management or distribution fees for WGOF
and WTFB, WGOF's distribution expense and total operating expenses as a
percentage of net assets would be 0.20% and 1.10% and WTFB's investment
adviser fee, distribution expense and total operating expenses as a
percentage of net assets would be 0.40%, 0.20% and 1.32%.
</FN>
</TABLE>
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 Wright
Government Near Term Total Return Insured Tax-Free Current
Obligations Fund Bond Fund Bond Fund Bond Fund Income Fund
(WGOF) (WNTB) (WTRB) (WTFB) (WCIF)
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1 Year $ 9 $ 8 $ 8 $ 9 $ 8
3 Years 29 24 25 29 26
5 Years 50 42 43 50 46
10 Years 111 93 95 111 101
- ------------------------------------------------------------------------------------------------------------------------------
THIS EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF ACTUAL PAST
EXPENSES OR FUTURE EXPENSES. ACTUAL EXPENSES MAY BE MORE OR LESS THAN THOSE
SHOWN DEPENDING UPON A VARIETY OF FACTORS INCLUDING THE ACTUAL PERFORMANCE OF
EACH FUND.
</TABLE>
<PAGE>
FINANCIAL HIGHLIGHTS
The following information should be read in conjunction with the audited
financial statements included in the Statement of Additional Information, all of
which have been so included in reliance upon the report of Deloitte & Touche
LLP, independent certified public accountants, as experts in accounting and
auditing, which is contained in the Funds' Statement of Additional Information.
Further information regarding the performance of each Fund is contained in the
Funds' 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>
WRIGHT GOVERNMENT
OBLIGATIONS FUND
FINANCIAL HIGHLIGHTS Year Ended December 31,
------------------------------------------------------------------------------------------
1994 1993 1992 1991 1990 1989 1988 1987 1986 1985
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year...... $ 14.360 $ 13.190 $ 13.220 $12.100 $12.300 $ 11.440 $11.540 $13.070 $11.800 $10.280
-------- -------- -------- ------- ------- -------- ------- ------- ------- -------
Income (loss) from Investment Operations:
Net investment income[1].............. $ 0.880 $ 0.892 $ 0.911 $ 0.902 $ 0.912 $ 0.937 $ 0.950 $ 0.978 $ 1.012 $ 1.010
Net realized and unrealized gain (loss)
on investments....................... (2.110) 1.170 (0.030) 1.120 (0.202) 0.859 (0.100) (1.398) 1.258 1.510
------ ----- ------ ----- ------ ----- ------ ------ ----- -----
Total income (loss) from investment
operations.......................... $ (1.230)$ 2.062 $ 0.881 $ 2.022 $ 0.710 $ 1.796 $ 0.850 $(0.420) $ 2.270 $ 2.520
-------- -------- -------- ------- ------- -------- ------- ------- ------- -------
Less Distributions:
From net investment income............ $ (0.880)$ (0.892)$ (0.911)$(0.902) $(0.910)$ (0.936)$(0.950)$(1.100) $(1.000) $(1.000)
From net realized gain on investment
transactions......................... -- -- -- -- -- -- -- (0.010) -- --
--------- --------- ------- ------- -------- --------- ------- ------- -------- --------
Total distributions................ $ (0.880)$ (0.892)$ (0.911)$(0.902) $(0.910)$ (0.936)$(0.950)$(1.110) $(1.000) $(1.000)
-------- -------- -------- ------- ------- --------- ------- ------- ------- -------
Net asset value, end of year............ $ 12.250 $ 14.360 $ 13.190 $13.220 $12.100 $ 12.300 $11.440 $11.540 $13.070 $11.800
======== ======== ======== ======= ======= ========= ======= ======= ======= =======
Total Return............................ (8.66%) 15.90% 7.07% 17.56% 6.33% 16.26% 7.60% (2.96%) 19.91% 26.33%
Ratios/Supplemental Data:
Net assets, end of year (000 omitted). $ 16,658 $ 29,846 $ 29,703 $33,857 $37,293 $ 49,445 $36,037 $41,337 $46,602 $16,831
Ratio of net expenses to average
net assets ........................ 0.9% 0.9% 0.9% 0.9% 0.9% 0.9% 0.9% 0.7% 0.9% 0.9%
Ratio of net investment income to
average net assets.................. 6.9% 6.3% 7.1% 7.4% 8.1% 7.9% 8.3% 8.1% 8.0% 9.4%
Portfolio Turnover Rate.............. 1% 12% 15% 15% 32% 15% 14% 68% 7% 3%
<FN>
[1]During the year ended December 31, 1987, and the year ended December 31,
1985, the operating expenses of the Fund were reduced either by a reduction of
the investment adviser fee, administrator fee, or distribution fee or through
certain expense allocations to the Adviser or a combination of these. During
each of the three years ended December 31,1994, the operating expenses of the
Fund were reduceed either by an allocation of expenses to the Adviser or a
reduction in distribution fee, 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,
-------------------------------------------
1994 1993 1992 1987 1985
Net investment income per share.............. $ 0.854 $ 0.878 $ 0.898 $ 0.960 $ 0.985
======== ======= ======= ======== =======
Ratios (As a percentage of average net assets):
Expenses.................................. 1.1% 1.0% 1.0% 0.8% 1.1%
=== === === === ===
Net investment income..................... 6.7% 6.2% 7.0% 8.0% 9.2%
=== === === === ===
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
WRIGHT
NEAR TERM BOND FUND Year Ended December 31,
FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------------
1994 1993 1992 1991 1990 1989 1988 1987 1986 1985
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year....... $ 10.840 $ 0.660 $10.750 $10.260 $10.330 $10.160 $10.500 $11.400 $11.020 $10 480
-------- ------- ------- ------- ------- ------- ------- ------- ------- --- ---
Income (loss) from Investment Operations:
Net investment income[1]............... $ 0.588 $ 0.655 $ 0.739 $0.795 $0.871 $ 0.928 $ 0.928 $ 0.969 $ 0.999 $ 0.979
Net realized and unrealized gain (loss)
on investments........................ (0.920) 0.180 (0.090) 0.489 (0.068) 0.160 (0.340) (0.739) 0.391 0.521
------ ----- ------ ----- ------ ----- ------ ------ ----- -----
Total income (loss) from investment
operations........................... $ (0.332) $ 0.835 $ 0.649 $1.284 $0.803 $ 1.088 $ 0.588 $ 0.230 $ 1.390 $ 1.500
-------- ------- ------- ------ ------ ------- ------- ------- ------- -------
Less Distributions:
From net investment income............. $ (0.588) $(0.655) $(0.739)$(0.794) $(0.873) $(0.918) $(0.928)$(1.120) $(0.990) $(0.960)
From net realized gain on investment
transactions.......................... -- -- -- -- -- -- -- (0.010) (0.020) --
--------- -------- -------- ------- -------- -------- -------- ------ ------ --------
Total distributions................. $ (0.588) $(0.655) $(0.739) $(0.794) $(0.873) $(0.918) $(0.928)$(1.130) $(1.010) $(0.960)
-------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Net asset value, end of year............. $ 9.920 $10.840 $10.660 $10.750 $10.260 $10.330 $10.160 $10.500 $11.400 $11.020
======== ======= ======= ======= ======= ======= ======= ======= ======= =======
Total Return............................. (3.10%) 7.95% 6.26% 13.08% 8.23% 11.17% 5.75% 2.34% 13.12% 15.30%
Ratios/Supplemental Data:
Net assets, end of year (000 omitted).. $212,122 $380,917 $371,074 $232,407 $253,537 $237,558 $199,200$192,947 $152,809 $71,626
Ratio of net expenses to average
net assets ........................... 0.7% 0.7% 0.8% 0.8% 0.8% 0.8% 0.8% 0.6% 0.8% 0.9%
Ratio of net investment income to
average net assets.................... 5.7% 6.0% 6.9% 7.7% 8.6% 9.0% 8.9% 9.1% 8.9% 9.5%
Portfolio Turnover Rate................ 33% 22% 6% 18% 25% 28% 23% 7% 12% 18%
<FN>
[1]During the year ended December 31, 1987, the Adviser and the Administrator
reduced their 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,
-----------------------
1987
Net investment income per share.... $ 0.949
=======
Ratios (As a percentage of average net assets):
Expenses........................ 0.8%
===
Net investment income........... 8.9%
===
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
WRIGHT TOTAL RETURN
BOND FUND Year Ended December 31,
FINANCIAL HIGHLIGHTS ---------------------------------------------------------------------------------------
1994 1993 1992 1991 1990 1989 1988 1987 1986 1985
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year....... $13.010 $12.610 $12.580 $11.700 $12.010 $11.430 $11.560 $13.120 $11.930 $10.330
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Income (loss) from Investment Operations:
Net investment income[1]............... $ 0.740 $ 0.789 $ 0.830 $ 0.854 $0.886 $ 0.923 $ 0.947 $ 0.957 $ 0.996 $ 1.004
Net realized and unrealized gain (loss)
on investments........................ (1.580) 0.580 0.030 0.880 (0.312) 0.573 (0.130) (1.367) 1.364 1.596
------ ----- ----- ----- ------ ----- ------ ------ ----- -----
Total income (loss) from investment
operations........................... $ (0.840)$ 1.369 $ 0.860 $ 1.734 $0.574 $ 1.496 $ 0.817 $(0.410) $ 2.360 $ 2.600
-------- ------- ------- ------- ------ -------- ------- ------- ------- -------
Less Distributions:
From net investment income............. $ (0.740)$(0.789) $(0.830)$(0.854) $(0.884) $ (0.916)$(0.947)$(1.140) $(1.000) $(1.000)
From net realized gain on investments.. -- (0.177) -- -- -- -- -- (0.010) (0.170) --
In excess of net realized gain on
investments........................... -- (0.003) -- -- -- -- -- -- -- --
-------- -------- -------- ------- -------- -------- ------- ------- ------- --------
Total distributions................. $ (0.740)$(0.969) $(0.830)$(0.854) $(0.884) $(0.916)$(0.947)$(1.150) $(1.170) $(1.000)
-------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Net asset value, end of year............. $ 11.430 $13.010 $12.610 $12.580 $11.700 $12.010 $11.430 $11.560 $13.120 $11.930
======== ======= ======= ======= ======= ======= ======= ======= ======= =======
Total Return............................. (6.57%) 11.03% 7.13% 15.38% 5.29% 13.58% 7.24% (3.13%) 20.54% 27.01%
Ratios/Supplemental Data:
Net assets, end of year (000 omitted).. $143,497 $259,513 $217,564$134,728 $112,408 $82,141 $31,410 $28,051 $19,278 $ 5,056
Ratio of net expenses to average
net assets........................... 0.8% 0.8% 0.8% 0.8% 0.8% 0.9% 0.9% 0.8% 0.9% 0.9%
Ratio of net investment income to
average net assets.................... 6.1% 6.0% 6.7% 7.2% 7.7% 7.7% 8.2% 8.2% 7.8% 9.3%
Portfolio Turnover Rate................ 32% 36% 13% 56% 48% 33% 11% 120% 20% 14%
<FN>
[1]The Principal Underwriter reduced its distribution fees during each of the
five years in the period ended December 31, 1989. The Adviser and the
Administrator also reduced their fees during the year ended December 31, 1987.
In addition, for the year ended December 31, 1985, certain expenses were
allocated to the Adviser. 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 1987 1986 1985
Net investment income per share.... $ 0.911 $ 0.934 $ 0.937 $ 0.981 $ 0.911
======= ======= ======= ======= =======
Ratios (As a percentage of average net assets):
Expenses....................... 1.0% 1.0% 1.0% 1.1% 1.8%
=== === === === ===
Net investment income........... 7.6% 8.1% 8.0% 7.6% 8.4%
=== === === === ===
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
WRIGHT INSURED
TAX-FREE BOND FUND Year Ended December 31,
FINANCIAL HIGHLIGHTS ---------------------------------------------------------------------------------------
1994 1993 1992 1991 1990 1989 1988 1987 1986 1985[2]
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year...... $12.170 $11.600 $11.330 $10.840 $10.870 $10.730 $10.660 $11.170 $10.370 $10.000
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Income from Investment Operations:
Net investment income[1].............. $ 0.560 $ 0.556 $ 0.601 $ 0.614 $ 0.647 $ 0.603 $ 0.601 $ 0.594 $ 0.663 $ 0.457
Net realized and unrealized gain (loss)
on investments....................... (1.050) 0.570 0.270 0.492 (0.030) 0.137 0.070 (0.354) 0.807 0.113
------ ----- ----- ----- ------ ----- ----- ------ ----- -----
Total income from investment operations$(0.490) $ 1.126 $ 0.871 $ 1.106 $ 0.617 $ 0.740 $ 0.671 $ 0.240 $ 1.470 $ 0.570
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Less Distributions:
From net investment income........... $(0.560) $(0.556) $(0.601)$(0.616) $(0.647) $(0.600) $(0.601)$ (0.750)$(0.670) $(0.200)
From net realized gains.............. (0.100) -- -- -- -- -- -- -- -- --
------ -------- -------- ------- -------- -------- -------- -------- ------- --------
Total distributions................ $(0.660) $(0.556) $(0.601)$(0.616) $(0.647) $(0.600) $(0.601)$(0.750) $(0.670) $(0.200)
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Net asset value, end of year............ $11.020 $12.170 $11.600 $11.330 $10.840 $10.870 $10.730 $10.660 $11.170 $10.370
======= ======= ======= ======= ======= ======= ======= ======= ======= =======
Total Return............................ (4.08%) 9.89% 7.91% 10.50% 5.93% 7.11% 6.42% 2.26% 14.67% 5.83%
Ratios/Supplemental Data:
Net assets, end of year (000 omitted). $10,647 $18,205 $13,454 $ 8,396 $ 5,513 $ 6,989 $ 7,983 $ 9,440 $ 8,050 $ 2,475
Ratio of net expenses to average
net assets .......................... 0.9% 0.9% 0.9% 0.9% 1.0% 0.9% 0.9% 1.0% 0.9% 0.9%[3]
Ratio of net investment income to
average net assets................... 4.8% 4.7% 5.3% 5.6% 6.0% 5.6% 5.6% 5.5% 6.1% 6.2%[3]
Portfolio Turnover Rate............... 4% 7% 10% 2% 28% 61% 5% 16% 4% 35%
<FN>
[1]During each of the ten years in the period ended December 31, 1994, 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,
----------------------------------------------------------------------------------------
1994 1993 1992 1991 1990 1989 1988 1987 1986 1985[2]
- -----------------------------------------------------------------------------------------------------------------------------
Net investment income per share.... $ 0.513 $ 0.521 $ 0.556 $ 0.537 $ 0.528 $ 0.506 $ 0.520 $ 0.559 $ 0.610 $ 0.379
======== ======== ======== ======= ======= ======== ======== ======= ======= =======
Ratios (As a percentage of average net assets):
Expenses....................... 1.3% 1.1% 1.3% 1.6% 2.1% 1.8% 1.6% 1.3% 1.7% 2.6%3
=== === === === === === === === === === =
Net investment income........... 4.4% 4.4% 4.9% 4.9% 4.9% 4.7% 4.9% 5.2% 5.3% 4.5%3
=== === === === === === === === === === =
[2]For the period from April 10, 1985 (commencement of operations) to December
31, 1985. The 1985 per share figures are based on average shares outstanding
during the period.
[3]Computed on an annualized basis.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
WRIGHT CURRENT
INCOME FUND Year Ended December 31,
FINANCIAL HIGHLIGHTS ---------------------------------------------------------------------------
1994 1993 1992 1991 1990 1989 1988 1987[2]
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year........ $10.750 $10.780 $10.850 $10.160 $10.090 $ 9.660 $ 9.760 $10.000
------- ------- ------- ------- ------- ------- ------- -------
Income (loss) from Investment Operations:
Net investment income[1]................ $ 0.690 $ 0.728 $ 0.767 $ 0.798 $ 0.859 $ 0.870 $ 0.929 $ 0.628
Net realized and unrealized gain (loss)
on investments......................... (1.040) (0.030) (0.069) 0.690 0.080 0.440 (0.100) (0.240)
------ ------ ------ ----- ----- ----- ------ ------
Total income (loss) from investment
operations............................ $(0.350) $ 0.698 $ 0.698 $ 1.488 $ 0.939 $ 1.310 $ 0.829 $ 0.388
------- ------- ------- ------- ------- ------- ------- -------
Less Distributions:
From net investment income.............. $(0.690)[4]$(0.728) $(0.767) $(0.798) $(0.859)$ (0.870) $(0.929) $(0.628)
From net realized gain.................. -- -- (0.001) -- (0.010) (0.010) -- --
----------- -------- ------- -------- -------- -------- -------- --------
Total distributions.................... $(0.690) $(0.728) $(0.768) $(0.798) $(0.869)$ (0.880) $(0.929) $(0.628)
------- ------- ------- ------- ------- -------- ------- -------
Net asset value, end of year.............. $ 9.710 $10.750 $10.780 $10.850 $10.160 $ 10.090 $ 9.660 $ 9.760
======= ======= ======= ======= ======= ======== ======= =======
Total Return.............................. (3.30%) 6.59% 6.73% 15.31% 9.85% 14.15% 8.71% 4.06%
Ratios/Supplemental Data:
Net assets, end of year (000 omitted)... $84,178 $115,158 $99,676 $65,700 $17,601 $ 13,925 $10,990 $5,435[3]
Ratio of net expenses to average
net assets............................. 0.8% 0.8% 0.9% 0.9% 0.9% 0.9% 0.0% 0.0%[3]
Ratio of net investment income to
average net assets..................... 6.9% 6.7% 7.2% 7.6% 8.6% 8.8% 9.5% 9.2%
Portfolio Turnover Rate................. 10% 4% 13% 5% 10% 15% 12% 2%
<FN>
[1]During each of the five 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,
-------------------------------------------
1991 1990 1989 1988 1987[2]
-------------------------------------------
Net investment income per share................ $ 0.787 $ 0.809 $ 0.821 $ 0.807 $ 0.524
======= ======= ======== ======== =======
Ratios (As a percentage of average net assets):
Expenses.................................... 1.0% 1.4% 1.4% 1.8% 1.8%[3]
=== === === === =======
Net investment income....................... 7.5% 8.1% 8.3% 7.7% 7.4%[3]
=== === === === =======
[2]Period from April 15, 1987 (commencement of operations) to December 31, 1987.
[3]Computed on an annualized basis.
[4]Includes distribution in excess of net investment income of $.00013 per share.
</FN>
</TABLE>
<PAGE>
PERFORMANCE AND YIELD INFORMATION
From time to time a Fund may publish its yield and/or average annual total
return in advertisements and communications to shareholders. The current yield
for a 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 a Fund on the last day of the period. A Fund'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. Investors should note that the investment
results of a Fund will fluctuate over time, and any presentation of a Fund's
current 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 or
total return may be in any future period. If the expenses of a Fund were reduced
by Wright, WISDI, or Eaton Vance, the Fund's performance would be higher.
THE FUNDS AND THEIR
INVESTMENT OBJECTIVES AND POLICIES
Each 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. Except
as otherwise indicated, the investment objectives have not been identified as
fundamental and the objectives and policies of each Fund may be changed by the
Trust's Trustees without a vote of the Fund's shareholders. Any such change of
the investment objective of a Fund will be preceded by thirty days advance
notice to each shareholder of such Fund. If such changes were made, the Funds
might have investment objectives different from the objectives which an investor
considered appropriate at the time the investor became a shareholder in the
Fund.
There is no assurance that any of the Funds will achieve its investment
objective. The market prices of securities held by the Funds will vary inversely
with interest rate changes, which will cause the net asset value of each Fund's
shares to fluctuate.
WRIGHT GOVERNMENT OBLIGATIONS FUND (WGOF). WGOF invests in U.S. Treasury bills,
notes and bonds, and other obligations of the U.S. Government and its agencies
and instrumentalities which are directly guaranteed as to principal and income
by the full faith and credit of the U.S. Government. Under normal market
conditions, the Fund will invest substantially all, but in any case at least
65%, of its net assets in such U.S. Government obligations and in repurchase
agreements with respect to such obligations. The Fund will not invest in
mortgage-related securities. This Fund is expected to maintain an average
weighted maturity of from 10 to 30 years.
WRIGHT NEAR TERM BOND FUND (WNTB). WNTB invests in U.S. Government obligations
and other debt instruments of high quality, with an average weighted maturity
expected to be 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. Government
securities and who is also seeking to limit fluctuation of capital (i.e.,
compared with longer term U.S. Government securities). Portfolio securities will
consist entirely of U.S. Government obligations, such as U.S. Treasury bills,
notes and bonds and obligations of agencies and instrumentalities of the U.S.
Government.
Investments in corporate obligations will be limited to those rated at the
time of investment as A or better by Standard & Poor's Ratings Group ("Standard
& Poor's") or by Moody's Investors Service ("Moody's") or, if not rated by such
rating organizations, of comparable quality as determined by the Trust's
Trustees, provided they also
<PAGE>
meet Wright Quality Rating Standards, as described in the Appendix in the
Statement of Additional Information.
WRIGHT TOTAL RETURN BOND FUND (WTRB). WTRB invests in bonds or other debt
securities of high quality selected by the Investment Adviser with an average
weighted maturity that, in the Investment Adviser's judgment, produces the best
total return, i.e., the highest total of ordinary income plus capital
appreciation. 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 or by Moody's or, if not rated by such
rating organizations, of comparable quality as determined by Wright pursuant to
guidelines established by the Trust's Trustees. In any case, they must also meet
Wright Quality Rating Standards.
WRIGHT INSURED TAX FREE BOND FUND (WTFB). WTFB invests primarily in high-grade
municipal bonds and other high-grade, long-term debt securities that provide
current interest income exempt from regular Federal income tax. In addition to
meeting the Investment Adviser's quality standards, such securities will be
rated A or better by Standard & Poor's or Moody's or, if not rated by such
rating organizations, be of at least comparable quality as determined by the
Investment Adviser.
During normal market conditions the Fund will invest at least 80% of the
value of its total assets in municipal securities the interest on which is
exempt from regular Federal income tax; in addition, under normal market
conditions, at least 65% of the Fund's investments will consist of municipal
securities that are covered by insurance guaranteeing the timely payment of
principal and interest. This is a fundamental investment policy which may be
changed only by the vote of a majority of the Fund's outstanding voting
securities. (For information on the insurance coverage for the Fund's
securities, see "Portfolio Insurance" on page 14.) Such municipal securities are
described under "Special Investment Considerations" below and normally will not
include certain "private activity" obligations, the interest on which is a tax
preference item that could subject shareholders to or increase their liability
for the Federal alternative minimum tax.
For temporary defensive purposes the Fund may invest more than 20% of its
net assets in taxable securities, as also described under "Special Investment
Considerations," and may invest more than 35% of its assets in securities that
are not covered by insurance. The Fund may also invest up to 20% of its net
assets in such "private activity" obligations and taxable securities (1) if, in
the Investment Adviser's opinion, investment considerations make it advisable to
do so, (2) to meet temporary liquidity requirements, and (3) during the period
between a commitment to purchase municipal bonds and the settlement date of such
purchase.
Rather than simply hold a fixed portfolio of bonds, the Investment Adviser
will attempt to take advantage of opportunities in the marketplace to achieve a
higher total return (i.e., the combination of income and capital performance
over the long term) when such action is not inconsistent with the objective of
providing a high level of tax-free income. The Fund will have an average
weighted maturity that, in the Investment Adviser's judgment, produces the best
compromise between return and stability of principal. Distributions of the
Fund's annual interest income from its tax-exempt securities will generally be
exempt from regular Federal income tax. Distributions exempt from regular
Federal income tax may not be exempt from the Federal alternative minimum tax or
from state or local taxes, and distributions, if any, made from realized capital
gains or other taxable income will be subject to Federal, state and local taxes
where applicable. In addition, the market prices of municipal bonds, like those
of taxable debt securities, vary inversely with interest rate changes.
<PAGE>
As a result, the Fund's net asset value per share can be expected to
fluctuate and shareholders may receive more or less than the purchase price for
shares which they redeem.
The Fund intends all municipal securities in which it invests will be
covered by insurance guaranteeing the timely payment of principal and interest.
The insurance covering municipal securities in the Fund's portfolio may be
provided (i) under a "new issue" insurance policy obtained by the issuer or
underwriter of a municipal security, (ii) under a "secondary market" policy
purchased by the Fund with respect to a municipal security or (iii) under a
portfolio insurance policy maintained by the Fund. These forms of insurance,
which are more fully described below under "Portfolio Insurance", are available
from a number of insurance companies. The Fund will only acquire insurance from,
and purchase municipal securities insured by, companies whose claims paying
ability is rated AAA or Aaa at the time of purchase. Changes in the financial
condition of an insurer could result in a subsequent reduction or withdrawal of
such rating. In each case, such insurance policies guarantee only the timely
payment of principal and interest on the insured municipal security. Market
value, which may fluctuate due to changes in interest rates or factors affecting
the credit of the issuer or the insurer, is not insured.
WRIGHT CURRENT INCOME FUND (WCIF). WCIF 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 Fund 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 Fund 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.
See "Special Investment Considerations-Mortgage-Related Securities" below.
The corporate debt securities in which the Fund may invest include
commercial paper and other short-term instruments rated A-1 by Standard & Poor's
or P-1 by Moody's. The Fund may invest in unrated debt securities if these are
determined by Wright pursuant to guidelines established by the Trust's Trustees
to be of a quality comparable to that of the rated securities in which the Fund
may invest. All of the corporate debt securities purchased by the Fund must meet
Wright Quality Rating Standards.
The Fund may enter into repurchase agreements with respect to any
securities in which it may invest.
OTHER INVESTMENT POLICIES
The Trust has 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 only by the vote of a majority of the Fund's outstanding
voting securities. Among these restrictions, the Trust may not borrow money in
excess of 1/3 of the current market value of the net assets of a Fund (excluding
the amount borrowed), invest more than 5% of a Fund's total
<PAGE>
assets taken at current market value in the securities of any one issuer,
allow a Fund to purchase more than 10% of the voting securities of any one
issuer or invest 25% or more of a Fund's total assets in the securities of
issuers in the same industry. There is, however, no limitation in respect to
investments in obligations issued or guaranteed by the U.S. Government or its
agencies or instrumentalities. None of the Funds has any current intention of
borrowing for leverage or speculative purposes.
The Trust may, with respect to WTFB, invest more than 25% of the total
assets of the Fund in municipal securities of one of more issuers of the
following types: public housing authorities; state and local housing finance
authorities; and municipal utilities systems, provided that they are secured or
backed by the U.S. Treasury or other U.S. Government agencies or by any agency,
insurance company, bank or other financial organization acceptable to the
Trust's Trustees. There could be economic, business or political developments
which might affect all municipal securities of a similar type. However, the
Trust believes that the most important consideration affecting risk is the
quality of municipal securities and/or the creditworthiness of any guarantor
thereof.
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.
SPECIAL INVESTMENT CONSIDERATIONS
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.
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 assets may be held in cash or invested in short-term
obligations, including but not 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
Standard & Poor's 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
Standard & Poor's 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, Wright, Eaton
<PAGE>
Vance or Investors Bank & Trust Company, an affiliate of Eaton Vance. No
preference will be shown towards investing in banks which have such
relationships.
MUNICIPAL SECURITIES. Municipal securities in which the WTFB may invest include
municipal notes and municipal bonds. Municipal notes are generally used to
provide for short-term capital needs and generally have maturities of one year
or less. Municipal bonds include general obligation bonds, which are secured by
the issuer's pledge of its faith, credit and taxing power for payment of
principal and interest, and revenue bonds, which are generally paid from the
revenues of a particular facility or a specific excise tax or other source.
PORTFOLIO INSURANCE. The three types of insurance are "new issue" insurance,
portfolio insurance and "secondary market" insurance. WTFB will obtain a
portfolio insurance policy which would guarantee payment of principal and
interest on eligible municipal securities owned by WTFB which are not otherwise
insured by "new issue" insurance or "secondary market" insurance and which would
therefore require insurance coverage under WTFB's investment policies. Under a
portfolio policy, the insurer may from time to time establish criteria for
determining municipal securities eligible for insurance. WTFB will not purchase
a municipal security which is not eligible for coverage under a portfolio policy
unless the municipal security is otherwise insured.
Unlike "new issue" insurance, which continues in force for the life of the
security, a municipal security will be entitled to the benefit of insurance
under a portfolio policy only so long as WTFB owns the security. If WTFB sells
the security, the insurance protection ends. As a result, the Trust will
generally not attribute any value to portfolio insurance in valuing WTFB's
investments. However, if any municipal security is in default or presents a
material risk of default, the Trust intends to continue to hold the security in
its portfolio and to place a value on the insurance protection. Thus, the
Investment Adviser's ability to manage the portfolio of WTFB or to obtain
portfolio insurance from other insurers may be limited to the extent that it
holds defaulted municipal securities. Portfolio insurance cannot be cancelled by
the insurer with respect to any municipal security already held by WTFB except
for non-payment of premiums. However, there is no assurance that portfolio
insurance will be available at reasonable premium rates. WTFB may at times
purchase "secondary market" insurance on municipal securities which it holds or
acquires. Like "new issue" insurance, this insurance continues in force for the
life of the municipal security for the benefit of any holder of the security.
The purchase of secondary market insurance would be reflected in the market
value of the municipal security and, if available, may enable WTFB to dispose of
a defaulted security at a price similar to that of comparable, undefaulted
securities.
Insurance premiums paid by WTFB for portfolio insurance would be treated as
an expense of WTFB, reducing WTFB's net investment income. While the amount of
premiums depends on the composition of WTFB's portfolio, WTFB estimates that, at
current rates, its annual premium expense for portfolio insurance, if purchased,
would range from 0.1% to 0.5% of that portion of WTFB's assets covered by such
insurance. Premiums paid, however, for secondary market insurance would be
treated as capital costs, increasing WTFB's cost basis in its investments and
reducing its effective yield. During the year ended December 31, 1994, WTFB did
not incur any insurance premiums.
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
<PAGE>
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 passthrough 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 passthrough 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."
THE INVESTMENT ADVISER
The Trust has engaged Wright Investors' Service ("Wright"), 1000 Lafayette
Boulevard, Bridgeport, Connecticut, to act as its investment adviser pursuant to
an Investment Advisory Contract. Under the general supervision of the Trustees
of the Trust, Wright furnishes the Funds with investment advice and management
services. The Trustees of the Trust are responsible for the general oversight of
the conduct of the Funds' business.
Wright is a leading independent international investment management and
advisory firm with more than 30 years' experience. Its staff of over 175 people
includes a highly respected team of 70 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 operates one of the world's
largest and most complete databases of financial information on 12,000 domestic
and international corporations. At the end of 1994, Wright managed approximately
$4 billion of assets.
Under Wright's Investment Advisory Contract with the Trust, Wright receives
monthly advisory fees at the
<PAGE>
annual rates (as a percentage of average daily net assets) set forth in the
table below. The table also lists each Fund's aggregate net asset value at
December 31, 1994.
Pursuant to the Investment Advisory Contract, Wright also furnishes for the
use of each Fund office space and all necessary office facilities, equipment and
personnel for servicing the investments of each Fund. Each Fund 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 Contract.
An Investment Committee of six senior officers, all of whom are experienced
analysts, exercises disciplined direction and control over all investment
selections, policies and procedures for each Fund's 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:
JOHN WINTHROP WRIGHT, Chairman of the Investment Committee, Chairman and
Chief Executive Officer of Wright Investors' Service. AB Amherst College. Before
founding Wright Investors' Service in 1960, Mr. Wright was treasurer, St. John's
College; Commander, USNR; Executive Vice President, Standard Air Services;
President, Wright Power Saw & Tool Corp.; Senior Partner, Andris Trubee & Co.
(financial consultants); and Chairman, Rototiller, Inc. Mr. Wright has
frequently been interviewed on radio and television in the United States and
Europe and his published investment and financial writings are widely quoted.
His testimony has often been requested by various House and Senate Committees of
the Congress on matters concerning monetary policy and taxes. He participated in
the 1974 White House Financial Summit on Inflation and the 1980 Congressional
Economic Conference. He is a director of the Center for Financial Studies and a
member of the Board of Visitors of the School of Business at Fairfield
University, a fellow of the University of Bridgeport Business School and a
Trustee of the Institutes for the Development of Human Potential in
Philadelphia. He is also a member of the New York Society of Security Analysts.
JUDITH R. CORCHARD, Vice Chairman of the Investment Committee, Executive
Vice President-Investment Management of Wright Investors' Service. Ms. Corchard
attended the University of Connecticut and joined Wright Investors' in 1960. She
is a member of the New York Society of Security Analysts and the Hartford
Society of Financial Analysts.
<TABLE>
<CAPTION>
ANNUAL % ADVISORY FEE RATES
-------------------------------------------------- Aggregate Fee Rate Paid
Under $100 Million $250 Million $500 Million Net Assets for the Fiscal
$100 to to to Over at Year Ended
Million $250 Million $500 Million $1 Billion $1 Billion 12/31/94 12/31/94
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Wright Government Obligations Fund (WGOF)0.40% 0.46% 0.42% 0.38% 0.33% $ 16,658,415 0.40%
Wright Near Term Bond Fund (WNTB) 0.40% 0.46% 0.42% 0.38% 0.33% $212,122,222 0.44%
Wright Total Return Bond Fund (WTRB) 0.40% 0.46% 0.42% 0.38% 0.33% $143,496,734 0.43%
Wright Insured Tax Free Bond Fund (WTFB) 0.40% 0.46% 0.42% 0.38% 0.33% $ 10,646,877 0.40%[1]
Wright Current Income Fund (WCIF) 0.40% 0.46% 0.42% 0.38% 0.33% $ 84,177,604 0.40%
- ---------------------------------------------------------------------------------------------------------------------------------
<FN>
[1]To enhance the net income of the Fund, Wright reduced its advisory fee by
$29,956 or from 0.40% to 0.19%.
</FN>
</TABLE>
<PAGE>
PETER M. DONOVAN, CFA, President of Wright Investors' Service. Mr. Donovan
received a BA Economics, Goddard College and joined Wright Investors' Service
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 and The Wright EquiFund Equity Trust. He is also
director of EquiFund - Wright National Equity Fund, a Luxembourg SICAV. He is a
member of the New York Society of Security Analysts and the Hartford Society of
Financial Analysts.
JATIN J. MEHTA, CFA, Executive Counselor and Director of Education of
Wright Investors' Service. 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 development bank promoted by the World Bank for
financial assistance to private industry. He is a Trustee of The Wright Managed
Blue Chip Series Trust. 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 Investors' Service. 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, B.J. at the College of Commerce & Economics, 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 Investors' Service. Mr. Flament received a BS Mathematics,
Fairfield University; MA Mathematics, University of Massachusetts and an MBA
Finance, University of Bridgeport. He is a member of the New York Society of
Security Analysts and the Hartford Society of Financial Analysts.
Wright places the portfolio security transactions for each Fund, 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 Funds' 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.
Wright is also the investment adviser to the other funds in The Wright
Managed Income Trust, The Wright Managed Equity Trust, The Wright Managed Blue
Chip Series Trust and The Wright EquiFund Equity Trust (the "Wright Funds").
THE ADMINISTRATOR
The Trust engages Eaton Vance as its administrator under an Administration
Agreement. Under the Administration Agreement, Eaton Vance is responsible for
managing the legal and business affairs of each Fund, subject to the supervision
of the Trust's Trustees. 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
<PAGE>
Eaton Vance, its affiliates and its predecessor companies have been
managing assets of individuals and institutions since 1924 and managing
investment companies since 1931. In addition to acting as the administrator of
the Funds, Eaton Vance or its affiliates act as investment adviser to investment
companies and various individual and institutional clients with assets under
management of approximately $15 billion. Eaton Vance is a wholly-owned
subsidiary of Eaton Vance Corp. ("EVC"), a publicly held holding company. EVC,
through its subsidiaries and affiliates, engages in investment management and
marketing activities, fiduciary and banking services, oil and gas operations,
real estate investment consulting and management and the development of precious
metals properties.
DISTRIBUTION EXPENSES
In addition to the fees and expenses payable by each Fund in accordance with its
Investment Advisory Contract and Administration Agreement, each Fund pays for
certain expenses pursuant to a Distribution Plan (the "Plans") an adopted by the
Trust and designed to meet the requirements of Rule 12b-1 under the Investment
Company Act of 1940.
The Trust's Plan provides that monies may be spent by a Fund on any
activities primarily intended to result in the sale of the Fund's shares,
including, but not limited to, compensation paid to and expenses incurred by
officers, Trustees, employees or sales representatives of the 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 Trust's Plan may include
payments to any separate distributors under agreement with the Trust for
activities primarily intended to result in the sale of the Trust's shares.
The Trust has entered into a distribution contract with Wright Investors'
Service Distributors, Inc. ("WISDI" or the "Principal Underwriter"), a
wholly-owned subsidiary of Wright. Under the Plan, it is intended that each Fund
will pay 2/10 of 1% of its average daily net assets to WISDI. Subject to the
2/10 of 1% per annum limitation imposed by the Plans, each Fund may pay
separately for expenses of any other activities primarily intended to result in
the sale of its shares.
<TABLE>
<CAPTION>
ANNUAL % -- ADMINISTRATION FEE RATES
----------------------------------------------- Fee Rate
Under $100 Million $250 Million Over Paid for the
$100 to to $500 Fiscal Year
Million $250 Million $500 Million Million Ended 12/31/94
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Wright Government Obligations Fund (WGOF) 0.10% 0.04% 0.03% 0.02% 0.10%
Wright Near Term Bond Fund (WNTB) 0.10% 0.04% 0.03% 0.02% 0.06%
Wright Total Return Bond Fund (WTRB) 0.10% 0.04% 0.03% 0.02% 0.07%
Wright Insured Tax Free Bond Fund (WTFB) 0.10% 0.04% 0.03% 0.02% 0.10%
Wright Current Income Fund (WCIF) 0.10% 0.04% 0.03% 0.02% 0.10%
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
The table below shows the distribution expenses allowable to WISDI and paid
by each Fund for the fiscal year ended December 31, 1994.
The Principal Underwriter may use the distribution fee for its expenses of
distributing each Fund's shares, including allocable overhead expenses. Any
distribution expenses exceeding the amounts paid by the Funds to the Principal
Underwriter were not incurred by the Principal Underwriter but were paid by
Wright from its own assets. Distribution expenses not specifically attributable
to a particular Fund are allocated among the Funds based on the amount of sales
of each Fund's 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. The Trust's Plan is a compensation plan. If the Plan is
terminated, the Funds will stop paying the distribution fee and the Trustees
will consider other methods of financing the distribution of the Funds' shares.
WHO MAY PURCHASE FUND SHARES AND
WHAT IS A "PARTICIPATING TRUST DEPARTMENT"
The Funds' shares will not be offered to the public generally and may be
purchased only by Participating Trust Departments, either for their own account
or for the account of their clients, or by individual clients of Wright. A
Participating Trust Department is defined as the trust department of a trust
company, of a commercial bank or of a thrift institution, or as a corporation,
an employee benefit plan sponsor, or another institution which is acceptable to
the Trustees of the Trust and which utilizes the investment advisory services of
Wright or which serves as a fiduciary (including as a custodian or similar
agent) for investment funds of clients which utilize Wright. The purchase of a
Fund's shares alone does not satisfy the requirement that a Participating Trust
Department utilize the services of the Wright organization. Wright does not
intend to exclude from the calculation of the investment advisory fees it
charges Participating Trust Departments the assets of Participating Trust
Departments which are invested in shares of the Funds. Accordingly, a
Participating Trust Department may pay an advisory fee to Wright as a client of
Wright in accordance with Wright's customary investment advisory fee schedule
charged to Participating Trust Departments and at the same time, as a
shareholder in a Fund, bear its share of the advisory fee paid by that Fund to
Wright as described above.
HOW THE FUNDS VALUE THEIR SHARES
The net asset value of each Fund is determined by Investors Bank & Trust Company
("IBT"), the Funds' custodian (as agent for the Funds), in the manner autho-
<TABLE>
<CAPTION>
Distribution Distribution Distribution Expenses Paid
Expenses Expenses As a % of Fund's
Allowable Paid by Fund Average Net Asset Value
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Wright Government Obligations Fund (WGOF) $ 42,491 $ 7,486[1] 0.04%
Wright Near Term Bond Fund (WNTB) $584,569 $584,569 0.20%
Wright Total Return Bond Fund (WTRB) $384,631 $384,631 0.20%
Wright Insured Tax Free Bond Fund (WTFB) $ 28,863 0[2] 0.00%
Wright Current Income Fund (WCIF) $200,298 $200,298 0.20%
- ----------------------------------------------------------------------------------------------------------------------------------
<FN>
[1] WISDI reduced its fee to WGOF by $35,005.
[2] WISDI reduced its fee to WTFB by $28,863.
</FN>
</TABLE>
<PAGE>
rized by the Trustees of the Trust. EVC owns 77.3% of the stock of IBT. Briefly,
this determination is made as of the close of regular trading (presently at 4:00
P.M.) on the New York Stock Exchange (the "Exchange") each day on which the
Exchange is open for trading. The net asset value per share is determined by
dividing the number of outstanding shares of the particular Fund into its net
worth (the excess of the Fund's assets over its liabilities). Securities of the
various Funds for which market quotations are readily available are valued at
current market value. These valuations are furnished to the Funds by a pricing
service. Valuations of securities for which quotations are not readily available
are determined in good faith by or at the direction of the Trust's Trustees.
HOW TO BUY SHARES
Shares of each Fund are sold without a sales charge at the net asset value next
determined after the receipt of a purchase order as described below. The minimum
initial purchase of shares is $1,000 per Fund. There is no minimum amount
required for subsequent purchases. Each Fund 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.
BY WIRE: Participating Trust Departments may purchase shares by
transmitting immediately available funds (Federal Funds) by wire to:
Federal Reserve Bank of Boston
A/C Investors Bank & Trust Company
for (specify name) Fund
Name and account number of Shareholder's Account
Initial purchase -- Upon making an initial investment by wire, a
Participating Trust Department must first telephone the Order Department of the
Funds at 800-225-6265 to advise of the action and to be assigned an account
number. If this telephone call is not made, it may not be possible to process
the order promptly. In addition, an Account Instructions form, which is
available through WISDI, should be promptly forwarded to The Shareholder
Services Group, Inc. (the "Transfer Agent") at the following address:
Wright Managed Investment Funds
BOS 725
P.O. Box 1559
Boston, Massachusetts 02104
Subsequent Purchases -- Additional investments may be made at any time
through the wire procedure described above. The Funds' Order Department must be
immediately advised by telephone at 800-225-6265 of each transmission of funds
by wire.
BY MAIL: Initial Purchases -- The Account Instructions form available
through WISDI should be completed by a Participating Trust Department, signed
and mailed 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 the Fund whose
shares are being purchased, as the case may be, and mailed to the Transfer Agent
at the above address.
Subsequent Purchases -- Additional purchases may be made at any time by a
Participating Trust Department 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 the relevant Fund at the above address. The Participating Trust
Department sub-account, if any, to which the subsequent purchase is to be
credited should be identified together with the sub-account number and, unless
otherwise agreed, the name of the sub-account.
PURCHASE THROUGH EXCHANGE OF SECURITIES: Investors wishing to purchase
shares of a Fund through an
<PAGE>
exchange of portfolio securities should contact WISDI to determine the
acceptability of the securities and make the proper arrangements. The 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 Funds 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, 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 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
Fund, using the procedures for valuing portfolio securities as described under
"How The Funds Value Their Shares" on page 19. However, if the NYSE or
appropriate foreign stock exchange is not open for unrestricted trading on such
date, such valuation shall be on the next day on which such 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.
HOW SHAREHOLDER ACCOUNTS ARE MAINTAINED
Upon the initial purchase of a Fund's shares, an account will be opened for the
account or sub-account of the Participating Trust Department. Subsequent
investments may be made at any time by mail to the Transfer Agent or by wire, as
noted above. Distributions paid in additional shares are credited monthly to the
accounts. Confirmation statements indicating total shares of each Fund owned in
the account or each sub-account will be mailed to Participating Trust
Departments monthly and at the time of each purchase or redemption. The issuance
of shares will be recorded on the books of the relevant Fund. The Trust does not
issue share certificates.
DISTRIBUTIONS BY THE FUNDS
Any net investment income earned by the Funds will be declared daily as a
dividend to shareholders of record at the time of declaration. Such dividends
will be distributed to shareholders monthly and will be reinvested in additional
shares of the same Fund unless the shareholder elects to receive the dividends
in cash. Dividends to be reinvested will be reinvested as of the first business
day of the month following their declaration. Dividends paid in cash will
normally be mailed on the second business day of the month following their
declaration. Net investment income will consist of interest accrued and discount
earned, if any, less any accrued estimated expenses subsequent to the prior
calculation of net income, if any, on the assets of the Fund. Distributions of
net short-term and long-term capital gains of each Fund (reduced by any
available capital loss carryforwards from prior years) will be made at least
annually.
<PAGE>
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. Each
Fund does not pay Federal income or excise taxes to the extent that it
distributes to its shareholders all of its net investment income and net
realized capital gains in accordance with the timing requirements of the Code.
In addition, each Fund will not be subject to income, corporate excise or
franchise taxes in Massachusetts as long as it qualifies as a regulated
investment company under the Code.
In order to avoid Federal excise tax, the Code requires that each Fund
distribute (or be deemed to have distributed) by December 31 of each calendar
year at least 98% of its ordinary income (not including tax-exempt income) for
such year, at least 98% of the excess of its realized capital gains over its
realized capital losses (after reduction by any available capital loss
carryforwards) for the one-year period ending on October 31 of such year or, at
the election of a Fund with a taxable year ending on December 31, for such
taxable year 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.
Net realized capital gains of each Fund for a given taxable year are
computed by taking into account any capital loss carryforward of the Fund. As of
December 31, 1994 the Funds, for Federal income tax purposes, had capital loss
carryovers of $963,970 (WGOF), $23,344,003 (WNTB), $698,168 (WCIF) and
$1,884,088 (WTRB) which will reduce each of the aforementioned Fund's taxable
income arising from future net realized gain on investments, if any, to the
extent permitted by the Code, and thus will reduce the amount of the
distribution to shareholders which would otherwise be necessary to relieve each
of the aforementioned Funds of liability for Federal income tax.
TAXABLE FUNDS. For Federal income tax purposes, distributions derived from
ordinary income and net short-term capital gains of WGOF, WNTB, WTRB and WCIF
Funds (the "Taxable Funds") are taxable to the shareholders as ordinary income
whether a shareholder elects to have these dividends reinvested in additional
shares or paid in cash. Distributions derived from net long-term capital gains
are taxable as long-term capital gains, whether reinvested or paid in cash, and
regardless of the length of time a shareholder has owned shares of the Fund. A
portion of certain distributions on shares of the Taxable Funds received shortly
after their purchase, although in effect a return of a portion of the purchase
price, may be subject to Federal income tax.
Since it is anticipated that virtually all of the ordinary income from each
of the Taxable Funds will be derived from interest income rather than dividends,
it is unlikely that any portion of the dividends paid by any of the Taxable
Funds will be eligible for the dividends received deduction for corporations.
Distributions made by the Taxable Funds will generally be subject to state
and local income 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 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
<PAGE>
obligations and/or reporting requirements are satisfied. The Trust will report
to shareholders of the Taxable Funds annually the percentages of distributions
which are derived from such interest income.
WRIGHT INSURED TAX FREE BOND FUND. Distributions of net tax exempt interest
income of the WTFB Fund (the "Fund") that are properly designated as
"exempt-interest dividends" may be treated by shareholders as interest
excludable from gross income in computing regular Federal income tax. In order
to qualify as a regulated investment company and be entitled to pay
exempt-interest dividends to its shareholders, the Fund must and intends to
satisfy certain requirements, including the requirement that, at the close of
each quarter of its taxable year, at least 50% of the value of its total assets
consists of obligations the interest on which is excludable from gross income
under Section 103 of the Code.
Interest on indebtedness incurred or continued by a shareholder to purchase
or carry shares of the Fund is not deductible to the extent it is deemed related
to the Fund's exempt-interest dividends. Further, entities or persons who are
"substantial users" (or persons related to "substantial users") of facilities
financed by industrial development or private activity bonds should consult
their tax advisers before purchasing shares of the Fund. The term "substantial
user" is defined in applicable Treasury regulations to include a "non-exempt
person" who regularly uses in a trade or business a part of a facility financed
from the proceeds of industrial development bonds and would likely be
interpreted to include private activity bonds issued to finance similar
facilities. Exempt-interest dividends attributable to interest on certain
private activity bonds issued after August 7, 1986 are treated as a tax
preference item for purposes of the alternative minimum tax applicable to
individuals and corporations, and all exempt-interest dividends are taken into
account in determining "adjusted current earnings" (to the extent not already
included in alternative minium taxable income as income attributable to private
activity bonds) for purposes of the alternative minimum tax applicable to
corporations.
From time to time, proposals have been introduced before Congress for the
purpose of restricting or eliminating the Federal income tax exemption for
interest on certain types of municipal obligations, and it can be expected that
similar proposals may be introduced in the future. Federal tax legislation
enacted in 1986 eliminated the Federal income tax exemption for interest on
certain state and municipal obligations and has required interest on other
obligations, although exempt from regular Federal income tax, to be treated as a
tax preference item for purposes of the individual and corporate alternative
minimum tax. Tax-exempt distributions are also required to be reported by
shareholders on their Federal income tax returns. The availability of state and
municipal obligations for investment by the Fund and the value of the assets of
the Fund may be affected by such legislation or future legislation. The Trust
intends to monitor the effect legislation may have upon the operations and
policies of the Fund.
The Fund may realize some short-term or long-term capital gains (and/or
losses) as a result of market transactions, including sales of portfolio
securities and rights to when-issued securities. Any distributions derived from
net short-term capital gains would be taxable to the shareholders as ordinary
income, and any distributions derived from net long-term capital gains would be
taxable to shareholders as long-term capital gains. However, it is expected that
such amounts, if any, would be insubstantial in relation to the tax-exempt
interest generated by the Fund. Any capital loss realized upon the redemption of
shares of the Fund with a tax holding period of six months or less will be
disallowed to the extent of any exempt-interest dividends received on such
shares. Distributions of income derived by the Fund from repurchase agreements,
securities lending, certain market discount, and a portion of the discount on
certain stripped municipal obligations and their coupons will also be taxed to
shareholders as ordinary income. No
<PAGE>
portion of the Fund's distributions will be eligible for the dividends received
deduction for corporations.
Distributions of tax exempt income are taken into consideration in
computing the portion, if any, of social security benefits and railroad
retirement benefits subject to federal and, in some cases, state taxes.
The exemption of interest income for Federal income tax purposes does not
necessarily result in exemption under the income or other tax laws of any state
or local taxing authority. In certain states, shareholders of the Fund may be
exempt from state and local taxes on distributions of tax-exempt interest income
derived from obligations of the state and/or municipalities of the state in
which they are resident, but taxable generally on income derived from
obligations of other jurisdictions. The Trust will report annually to
shareholders of the Fund the percentage of net tax exempt income earned by such
Fund which represents interest on obligations of issuers located in each state.
ALL FUNDS
Annually shareholders of each Fund that are not exempt from information
reporting requirements will receive information on Form 1099 (except
exempt-interest dividends are not reportable on such form) to assist in
reporting the prior calendar year's distributions and redemptions (including
exchanges) on Federal and state income tax returns. Dividends declared by a Fund
in October, November or December of any calendar year 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. Shareholders may realize a taxable
gain or loss upon a redemption (including an exchange) of shares of a Fund. Any
loss realized upon the redemption or exchange of shares of a Fund with a tax
holding period of six months or less and not otherwise disallowed will be
treated as a long-term capital loss to the extent of any distributions of
long-term capital gains with respect to such shares. All or a portion of a loss
realized upon the redemption or exchange of shares may be disallowed under "wash
sale" rules to the extent shares 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 or exchange. Shareholders
should consult their own tax advisers with respect to the tax status of
distributions from the Funds or redemption or exchange of Fund shares in their
own states and localities.
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 required certifications will be subject to
backup withholding of 31% on taxable distributions made by all of the Funds,
usually excluding the WTFB Fund, and on proceeds of redemptions (including
exchanges) of shares of all Funds. Taxable distributions of WTFB Fund, if any,
will not be subject to backup withholding, provided that it is reasonably
expected that at least 95% of the dividends of that Fund for the year will be
exempt-interest dividends. In addition, the Trust may be required to impose
backup withholding if it is notified by the IRS or a broker that the taxpayer
identification number is incorrect or that backup withholding applies because of
underreporting 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.
Special tax rules apply to IRA 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.
Shareholders who are not United States persons should also consult their
tax advisers as to the potential application of certain U.S. taxes, including a
30% U.S. withholding
<PAGE>
tax (or withholding tax at a lower treaty rate) on dividends representing
ordinary income to them, and of foreign taxes to their investment in the Funds.
HOW TO EXCHANGE SHARES
Shares of any Fund may be exchanged for shares of the other Funds in The Wright
Managed Income Trust, The Wright Managed Equity Trust or The Wright EquiFund
Equity Trust at net asset value at the time of the exchange.
This exchange offer is available only in states where shares of such 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 obtain a prospectus and consider these
objectives and policies carefully before requesting an exchange.
The Shareholder Services Group, Inc. 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 $25,000 and on deposit with The
Shareholder Services Group, Inc. and the investor has not disclaimed in writing
the use of the privilege. To effect such exchanges, call The Shareholder
Services Group, Inc. at 800-262-1122 or within Massachusetts, 617-573-9403,
Monday through Friday, 9:00 a.m. to 4:00 p.m. (Eastern Standard 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
Trust, the Distributor nor The Shareholder Services Group, Inc. 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, and if such procedures are not followed,
the Trust, the Funds, the Distributor or The Shareholder Services Group, Inc.
may be liable for any losses due to unauthorized or fraudulent telephone
instructions. Telephone instructions will be tape recorded. In times of drastic
economic or market changes, a telephone exchange may be difficult to implement.
Additional documentation may be required for written 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, The Shareholder Services Group, Inc., 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 which may result in recognition
of a gain or loss.
HOW TO REDEEM OR SELL SHARES
Shares of a Fund will be redeemed at the net asset value next determined after
receipt of a redemption request in good order as described below. Proceeds will
be mailed within seven days of such receipt. However, at various times a Fund
may be requested to redeem shares for which it has not yet received good
payment. If the shares to be redeemed represent an investment made by check,
each 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. For Federal and state income tax purposes, a redemption of shares is
a taxable transaction and may result in recognition of a gain or loss.
<PAGE>
BY TELEPHONE: Participating Trust Departments, which have given written
authorization in advance, may effect a redemption by calling the Funds' Order
Department at 800-225-6265 Monday through Friday (8:30 a.m. to 4:00 p.m. Eastern
time). In times when the volume of telephone redemptions is heavy, additional
phone lines will automatically be added by the Funds. However, in times of
drastic economic or market changes, a telephone redemption may be difficult to
implement. When calling to make a telephone redemption, shareholders should have
available their account number. A telephone redemption will be made at that
day's net asset value, provided that the telephone redemption request is
received prior to 4:00 p.m. on that day. Telephone redemption requests received
after 4:00 p.m. will be effected at the net asset value determined for the next
trading day. Payment will be made by wire transfer to the bank account
designated and normally, as indicated above, within one business day after
receipt of the redemption request in good order. Participating Trust Departments
may make redemptions and deposit the proceeds in checking or other accounts of
clients, as specified in instructions furnished to the Funds at the time of
initially purchasing Fund shares. Neither the Trust, the Principal Underwriter
nor the Shareholder Services Group, Inc. will be responsible for the
authenticity of redemption instructions received by telephone, provided that
reasonable procedures have been followed to confirm that instructions
communicated are genuine, and if such procedures are not followed, the Trust,
the Funds, the Distributor or The Shareholder Services Group, Inc. may be liable
for any losses due to unauthorized or fraudulent telephone instructions.
BY MAIL: A Participating Trust Department may also redeem all or any number
of shares at any time by mail by delivering the request with a stock power to
the Transfer Agent, The Shareholder Services Group, Inc., Wright Managed
Investment Funds, P.O. Box 1559, Boston, Massachusetts 02104. As in the case of
wire requests, payments will normally be made within one business day after
receipt of the redemption request in good order. Good order means that written
redemption requests or stock powers must be endorsed by the record owner(s)
exactly as the shares are registered and the signature(s) must be guaranteed by
a member of either the Securities Transfer Association's STAMP program or the
New York Stock Exchange's Medallion Signature Program, or certain banks, savings
and loan institutions, credit unions, securities dealers, securities exchanges,
clearing agencies and registered securities associations as required by a
regulation of the Securities and Exchange Commission and acceptable to The
Shareholder Services Group, Inc. In addition, in some cases, good order may
require the furnishing of additional documents, such as where shares are
registered in the name of a corporation, partnership or fiduciary.
The right to redeem shares of a Fund and to receive payment therefor may be
suspended at times (a) when the securities markets are closed, other than
customary weekend and holiday closings, (b) when trading is restricted for any
reason, (c) when an emergency exists as a result of which disposal by the Fund
of securities owned by it is not reasonably practicable or it is not reasonably
practicable for the Fund fairly to determine the value of its net assets, or (d)
when the Securities and Exchange Commission by order permits a suspension of the
right of redemption or a postponement of the date of payment or redemption.
Although the Funds normally intend to redeem shares in cash, each Fund,
subject to compliance with applicable regulations, reserves the right to deliver
the proceeds of redemptions in the form of portfolio securities if deemed
advisable by the Trustees of the Trust. The value of any such portfolio
securities distributed will be determined in the manner described under "How the
Funds Value Their Shares" and may be more or less than a shareholder's cost
depending upon the market value of portfolio securities at the time the
redemption is made. If the amount of a Fund's shares to be redeemed for a
Participating Trust Department
<PAGE>
sub-account within a 90-day period exceeds the lesser of $250,000 or 1% of
the aggregate net asset value of the Fund at the beginning of such period, such
Fund reserves the right to deliver all or any part of such excess in the form of
portfolio securities. If portfolio securities were distributed in lieu of cash,
the shareholder would normally incur transaction costs upon the disposition of
any such securities.
Due to the relatively high cost of maintaining small accounts, each Fund
reserves the right to redeem fully at net asset value any Fund account
(including accounts of clients of Participating Trust Departments) which at any
time, due to redemption or transfer, amounts to less than $1,000 for that Fund;
any shareholder who makes a partial redemption which reduces his account in a
Fund to less than $1,000 would be subject to the Fund's right to redeem such
account. Prior to the execution of any such redemption, notice will be sent and
the Participating Trust Department will be allowed 60 days from the date of
notice to make an additional investment to meet the required minimum of $1,000
per Fund. However, no such redemption would be required by the Fund if the cause
of the low account balance was a reduction in the net asset value of Fund
shares.
OTHER INFORMATION
The Trust is a business trust established under Massachusetts law and is a
no-load, open-end management investment company. The Trust was established
pursuant to a Declaration of Trust dated February 17, 1983, as amended and
restated December 21, 1987 and further amended March 28, 1991 to change the name
of the Trust from "The Wright Managed Bond Trust" to "The Wright Managed Income
Trust."
The Trust's shares of beneficial interest have no par value. Shares of the
Trust may be issued in two or more series or "Funds". The Trust currently has
six Funds, five of which are offered in this Prospectus. Each Fund's shares may
be issued in an unlimited number by the Trustees of the Trust. Each share of a
Fund represents an equal proportionate beneficial interest in that Fund and,
when issued and outstanding, the shares are fully paid and non-assessable by the
relevant Fund. Shareholders are entitled to one vote for each full share held.
Fractional shares may be voted in proportion to the amount of the net asset
value of a Fund which they represent. Voting rights are not cumulative, which
means that the holders of more than 50% of the shares voting for the election of
Trustees of the Trust can elect 100% of the Trustees and, in such event, the
holders of the remaining less than 50% of the shares voting on the matter will
not be able to elect any Trustees. Shares have no preemptive or conversion
rights and are freely transferable. Upon liquidation of a Fund, shareholders are
entitled to share pro rata in the net assets of the particular Fund available
for distribution to shareholders, and in any general assets of the Trust not
allocated to a particular Fund by the Trustees.
As permitted by Massachusetts law, there will normally be no meetings of
shareholders for the purpose of electing Trustees unless and until such time as
less than a majority of the Trustees holding office have been elected by
shareholders. In such an event the Trustees then in office will call a
shareholders' meeting for the election of Trustees. Except for the foregoing
circumstances and unless removed by action of the shareholders in accordance
with the Trust's by-laws, the Trustees shall continue to hold office and may
appoint successor Trustees. The Trustees shall only be liable in cases of their
willful misfeasance, bad faith, gross negligence, or reckless disregard of their
duties.
The Trust's by-laws provide that no person shall serve as a Trustee if
shareholders holding two-thirds of the outstanding shares have removed him from
that office either by a written declaration filed with the Trust's custodian or
<PAGE>
by votes cast at a meeting called for that purpose. The Trustees shall promptly
call a meeting of the shareholders for the purpose of voting upon a question of
removal of a Trustee when requested so to do by the record holders of not less
than 10 per centum of the outstanding shares.
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 have
considered this in approving the use of a combined Prospectus.
TAX-SHELTERED RETIREMENT PLANS
The Funds (but not the WTFB Fund) are suitable investments for 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.
For more information, write to:
Wright Investors' Service Distributors, Inc.
1000 Lafayette Boulevard
Bridgeport, Connecticut 06604
or call:
(203) 330-5060
<PAGE>
THE WRIGHT
MANAGED INCOME TRUST
PROSPECTUS
MAY 1, 1995
THE WRIGHT MANAGED INCOME TRUST
- -------------------------------------------------------------------------------
INVESTMENT ADVISER
Wright Investors' Service
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
24 Federal Street
Boston, Massachusetts 02110
TRANSFER AGENT
The Shareholder Services Group, Inc.
Wright Managed Investment Funds
BOS 725
P.O. Box 1559
Boston, Massachusetts 02104
AUDITORS
Deloitte & Touche LLP
125 Summer Street
Boston, Massachusetts 02110
24 FEDERAL STREET
BOSTON, MASSACHUSETTS 02110
<PAGE>
PART A
-------------------------------------
INFORMATION REQUIRED IN A PROSPECTUS
P R O S P E C T U S MAY 1, 1995
- -------------------------------------------------------------------------------
WRIGHT U.S. TREASURY MONEY MARKET FUND
A SERIES OF
The Wright Managed Income Trust
A MUTUAL FUND SEEKING HIGH CURRENT INCOME
- -------------------------------------------------------------------------------
AN INVESTMENT IN THE FUND IS NEITHER INSURED NOR GUARANTEED BY THE U.S.
GOVERNMENT, AND THERE IS NO ASSURANCE THAT THE FUND WILL BE ABLE TO MAINTAIN A
STABLE NET ASSET VALUE OF $1.00 PER SHARE.
Write To: THE WRIGHT MANAGED INVESTMENT FUNDS, BOS 725, BOX 1559,
BOSTON, MA 02104
Or Call: THE FUND ORDER ROOM - (800) 225-6265
This Prospectus is designed to provide you with information you should know
before investing. Please retain this document for future reference.
A Statement of Additional Information dated May 1, 1995 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
(800-888-9471).
SHARES OF THE FUND 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 FUND INVOLVE INVESTMENT RISKS,
INCLUDING FLUCTUATIONS IN VALUE AND THE POSSIBLE LOSS OF SOME OR ALL OF THE
PRINCIPAL INVESTMENT.
TABLE OF CONTENTS
PAGE
An Introduction To The Fund....................... 2
Shareholder And Fund Expenses..................... 3
Financial Highlights.............................. 4
Performance And Yield Information................. 5
The Fund's Investment Objectives And Policies..... 5
Other Investment Policies......................... 6
Special Investment Considerations................. 6
The Investment Adviser............................ 7
The Administrator................................. 8
How The Fund Values Its Shares.................... 8
How To Buy Shares................................. 9
How Shareholder Accounts Are Maintained........... 10
Distributions By The Fund......................... 10
Taxes............................................. 10
How To Exchange Shares............................ 11
How To Redeem Or Sell Shares...................... 12
Other Information................................. 14
Tax-Sheltered Retirement Plans.................... 15
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 FUND
THE INFORMATION SUMMARIZED BELOW IS QUALIFIED IN ITS ENTIRETY BY THE MORE
DETAILED INFORMATION SET FORTH IN THIS PROSPECTUS.
The Trust................The Wright Managed Income Trust
(the "Trust") is an open-end investment management
company known as a mutual fund, is registered under the
Investment Company Act of 1940, as amended, and
consists of six series (the "Funds") (including five
series that are being offered under a separate
prospectus). Each Fund is a diversified fund and
represents a separate and distinct series of the
Trust's shares of beneficial interest.
The Fund.................WRIGHT U.S. TREASURY MONEY MARKET FUND
Investment...............The Fund seeks to provide as high a rate of current
Objective income as possible consistent with the preservation
of capital and maintenance of liquidity. The Fund
intends to invest exclusively in securities of the
U.S. Government.
Net Asset Value..........The Fund seeks to maintain a
stable net asset value of $1.00 per share by valuing
its securities by the amortized cost method.
Accordingly, the Fund will limit its investments to
securities with a remaining maturity of 13 months or
less and will maintain a weighted average portfolio
maturity of not more than 90 days. Net asset value is
calculated twice daily.
The Investment...........The Fund has engaged Wright Investors' Service, 1000
Adviser Lafayette Boulevard, Bridgeport, CT 06604 ("Wright"
or the "Investment Adviser") as investment adviser
to carry out the investment and reinvestment of the
Fund's assets.
The Administrator........The Fund also has retained Eaton Vance Management
("Eaton Vance" or the "Administrator"),
24 Federal Street, Boston, MA 02110
as administrator to manage the Fund's legal and
business affairs.
The Distributor..........Wright Investors' Service Distributors, Inc. is the
Distributor of the Fund's shares.The Fund does not make
payments of distribution fees.
How to Purchase.........Shares of the Fund are sold without a sales charge at
Fund Shares the net asset value next determined after receipt of
a purchase order. Shares purchased before noon
will earn interest for that day. Shares purchased in
the afternoon will start to earn interest the next
business day. The minimum initial investment is $1,000.
There is no minimum for subsequent purchases.
The minimum is waived for Bank Draft Investing
accounts. See "How to Buy Shares."
<PAGE>
Distribution ............Distributions are paid in additional shares at net
Options asset value or cash as the shareholder
elects. Unless the shareholder has elected to receive
dividends and distributions in cash, dividends and
distributions will be reinvested in additional shares
of the Funds at net asset value per share as of the
investment date.
Redemptions..............Shares may be redeemed at the net asset value next
determined after receipt of the redemption request by
telephone or by mail in good order.
Also, shareholders may request that they be provided
with special forms of checks. These checks may be made
payable by the shareholder to the order of any person
in any amount of $500 or more. See "How to Redeem or
Sell Shares."
Exchange ................Shares of the Fund may be exchanged for shares of
Privilege certain other Funds managed by the Investment Adviser
at the net asset value next determined after receipt
of the exchange request. See "How to Exchange Shares."
Taxation.................The Fund has elected to be treated, has qualified and
intends to continue to qualify each year as a regulated
investment company under Subchapter M of the Internal
Revenue Code.
Shareholder..............Each shareholder will receive annual and semi-annual
Communications 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.
<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 the Fund. The percentages shown below
representing total operating expenses are based on actual expenses for the
fiscal year ended December 31, 1994, adjusted to reflect a voluntary annual
expense limitation of 0.45% of average net assets for fiscal year 1995.
<TABLE>
- -------------------------------------------------------------------------------
SHAREHOLDER TRANSACTION EXPENSES none
ANNUALIZED FUND OPERATING EXPENSES after expense allocations and fee reductions
(as a percentage of average net assets)
<S> <C>
INVESTMENT ADVISER FEE
(after voluntary fee reduction) 0.09%
OTHER EXPENSES
(including administration fee of 0.07%) 0.36%
----
TOTAL OPERATING EXPENSES[1] 0.45%
====
- -------------------------------------------------------------------------------
<FN>
[1]If no fee reduction were made, the annual Fund operating expenses as a
percentage of average net assets would be: Investment Adviser Fee -- 0.35%,
Other Expenses -- 0.36%, and Total Operating Expenses -- 0.71%.
</FN>
</TABLE>
EXAMPLE OF FUND EXPENSES
The following is an illustration of the total transaction and operating
expenses that an investor in the Fund would bear over different periods of time,
assuming a investment of $1,000, a 5% annual return on the investment and
redemption at the end of each period:
- -------------------------------------------------------------------------------
1 Year $ 5
3 Years $14
5 Years $25
10 Years $57
- -------------------------------------------------------------------------------
THIS EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF ACTUAL PAST
EXPENSES OR FUTURE EXPENSES. ACTUAL EXPENSES MAY BE MORE OR LESS THAN THOSE
SHOWN DEPENDING UPON A VARIETY OF FACTORS INCLUDING THE ACTUAL PERFORMANCE OF
THE FUND.
<PAGE>
FINANCIAL HIGHLIGHTS
The following information should be read in conjunction with the audited
financial statements included in the Statement of Additional Information, all of
which has been included in reliance upon the report of Deloitte & Touche LLP,
independent certified public accountants, as experts in accounting and auditing,
which report is contained in the Fund's Statement of Additional Information.
Further information regarding the performance of the Fund is contained in the
Fund's annual report to shareholders which may be obtained without charge by
contacting the Fund's Principal Underwriter, Wright Investors' Service
Distributors, Inc. at 800-888-9471.
<TABLE>
<CAPTION>
Year Ended December 31,
--------------------------------------------------
1994 1993 1992 1991[2]
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value-- beginning of year........ $1.00 $1.00 $1.00 $1.00
Income from Investment Operations:
Net investment income[1]................ 0.03494 0.02503 0.03221 0.02526
Less Distributions:
From net investment income.............. (0.03494) (0.02503) (0.03221) (0.02526)
-------- -------- -------- --------
Net asset value, end of year............... $1.00 $1.00 $1.00 $1.00
===== ===== ===== =====
Total Return[4]............................ 3.55% 2.53% 3.27% 5.06%[3]
Ratios/Supplemental Data:
Net assets, end of year (000 omitted)... $68,877 $11,011 $13,856 $15,233
Ratio of net expenses to average net assets 0.45% 0.45% 0.46% 0.25%[3]
Net investment income to average net assets 3.77% 2.52% 3.19% 4.95%[3]
<FN>
[1]During each of the years in the four-year period ended December 31, 1994, 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,
---------------------------------------------------
1994 1993 1992 1991[2]
- -----------------------------------------------------------------------------------------------------------------
Net investment income per share............ $0.03253 $0.01977 $0.02958 $0.02159
======== ======== ======== ========
Ratios (As a percentage of average net assets):
Expenses................................ 0.71% 0.97% 0.72% 0.97%[3]
==== ==== ==== ==== =
Net investment income .................. 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.
</FN>
</TABLE>
<PAGE>
PERFORMANCE AND YIELD INFORMATION
From time to time, quotations of the Fund's "yield" and "effective yield"
may be included in advertisements and communications to shareholders. Both yield
figures are based on historical earnings and are not intended to indicate future
performance. The "yield" of the 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 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.
Investors should note that the investment results of the Fund will
fluctuate over time, and any presentation of the Fund's yield or effective yield
for any prior period should not be considered as a representation of what an
investment may earn or what an investor's yield or effective yield may be in any
future period. If the expenses of the Fund were reduced by Wright, the Fund's
performance would be higher.
THE FUND'S INVESTMENT OBJECTIVES
AND POLICIES
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. Government 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 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 investment objective of the Fund is not fundamental and may be changed
by the Trustees of the Trust without a vote of the Fund's shareholders. Any such
change of the investment objective of the Fund will be preceded by thirty days
advance notice to each shareholder of the Fund. If any changes were made, the
Fund might have investment objectives different from the objectives which an
investor considered appropriate at the time the investor became a shareholder in
the Fund.
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.
<PAGE>
OTHER INVESTMENT POLICIES
The Trust has adopted certain fundamental investment restrictions on behalf
of the Fund which are enumerated in detail in the Statement of Additional
Information and which may be changed only by the vote of a majority of the
Fund's outstanding voting securities. Among these restrictions, the Fund may not
borrow money in excess of 1/3 of the current market value of its net assets
(excluding the amount borrowed), invest more than 5% of the Fund's total assets
taken at current market value in the securities of any one issuer, purchase more
than 10% of the voting securities of any one issuer or invest 25% or more of the
Fund's total assets in the securities of issuers in the same industry. There is,
however, no limitation on investments in U.S. Government securities. The Fund
has no current intention of borrowing for leverage or speculative purposes
during the current fiscal year ending December 31, 1995.
The Fund may not invest more than 5% of its total assets (taken at
amortized cost) in securities issued by or subject to puts from any one issuer
(except U.S. Government securities and repurchase agreements collateralized by
such securities), except that a single investment may exceed such limit if such
security (i) is rated in the highest rating category of the requisite number of
nationally recognized statistical rating organizations or, if unrated, is
determined to be of comparable quality and (ii) is held for not more than three
business days. In addition, the Fund may not invest more than 5% of its total
assets (taken at amortized cost) in securities of issuers not in such highest
rating category or, if unrated, of comparable quality. An investment in any one
such issuer is limited to no more than 1% of such total assets or $1 million,
whichever is greater.
The Fund is not 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 Fund shares. The Fund cannot
eliminate risk or assure achievement of its objective.
SPECIAL INVESTMENT CONSIDERATIONS
REPURCHASE AGREEMENTS. The Fund 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. The 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. The Fund is
required to hold and maintain in a segregated account with the Fund's custodian
or subcustodian until the settlement date, cash, or other high-quality liquid
debt obligations in an amount sufficient to meet the purchase price.
Alternatively, the 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 the Fund
would generally purchase securities on a when-issued or forward commitment basis
with the intention of acquiring securities for its portfolio, the Fund may
dispose of a when-issued security
<PAGE>
or forward commitment prior to settlement if the Investment Advisor deems it
approprite to do so.
LENDING OF PORTFOLIO SECURITIES. The Fund may also seek to increase its
income by lending portfolio securities. Under present regulatory policies, such
loans may be made to institutions, such as broker-dealers, and are required to
be secured continuously by collateral in cash, cash equivalents, or U.S.
Government securities maintained on a current basis at an amount at least equal
to the market value of the securities loaned. As with other extensions of
credit, there are risks of delay in recovering, or even loss of rights in, the
collateral should the borrower of the securities fail financially. However, the
loans would be made only to firms deemed by the Investment Adviser to be of good
standing, and when, in the judgment of the Investment Adviser, the consideration
which can be earned currently from securities loans of this type justifies the
attendant risk. If the Investment Adviser determines to make securities loans,
it is intended that the value of the securities loaned would not exceed 30% of
the value of the total assets of the Fund.
THE INVESTMENT ADVISER
The Trust has engaged Wright Investors' Service ("Wright"), 1000 Lafayette
Boulevard, Bridgeport, Connecticut, to act as its investment adviser pursuant to
an Investment Advisory Contract. Under the general supervision of the Trustees
of the Trust, Wright furnishes the Fund with investment advice and management
services. The Trustees of the Trust are responsible for the general oversight of
the conduct of the Fund's business.
Wright is a leading independent international investment management and
advisory firm with more than 30 years' experience. Its staff of over 175 people
includes a highly respected team of 70 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 operates one of the world's
largest and most complete databases of financial information on 12,000 domestic
and international corporations. At the end of 1994, Wright managed approximately
$4 billion of assets.
Under Wright's Investment Advisory Contract with the Trust, Wright receives
monthly advisory fees at the annual rates (as a percentage of average daily net
assets) set forth in the following table. The table also lists the Fund's
aggregate net asset value at December 31, 1994 and the advisory fee rate paid
during the fiscal year ended December 31, 1994.
Pursuant to the Investment Advisory Contract, Wright also furnishes for the
use of the Fund office space and all necessary office facilities, equipment and
personnel for servicing the investments of the Fund. The Fund 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 Contract.
Wright places the portfolio security transactions for the Fund, 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 Fund's 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 Fund or of other
investment companies sponsored by Wright as a factor in the selection of
broker-dealer firms to execute such transactions.
Wright is also the investment adviser to the other Funds in The Wright
Managed Income Trust, The Wright Managed Equity Trust, The Wright Managed Blue
Chip Series Trust and The Wright EquiFund Equity Trust (the "Wright Funds").
<PAGE>
The Trust on behalf of the Fund has also entered into a Distribution
Contract with Wright Investors' Service Distributors, Inc. ("WISDI" or the
"Principal Underwriter"), a wholly-owned subsidiary of Wright. The Fund does not
pay WISDI any compensation under its Distribution Contract.
THE ADMINISTRATOR
The Trust engages Eaton Vance as administrator under an Administration
Agreement for the Fund. Under the Administration Agreement, Eaton Vance is
responsible for managing the legal and business affairs of the Fund, subject to
the supervision of the Trust's Trustees. Eaton Vance services include
recordkeeping, preparation and filing of documents required to comply with
Federal and state securities laws, supervising the activities of the Fund's
custodian and transfer agent, providing assistance in connection with the
Trustees' and shareholders' meetings and other administrative services necessary
to conduct the Fund's business. Eaton Vance will not provide any investment
management or advisory services to the Fund. For its services under the
Administration Agreement, Eaton Vance receives a monthly administration fee at
the annual rates (as a percentage of average daily net assets) set forth in the
following table.
<TABLE>
<CAPTION>
Annual % -- Administration Fee Rates
- ------------------------------------------
Under $100 Million Over Fee Rate Paid
$100 to $500 for the Fiscal Year
Million $500 Million Million Ended 12/31/94
- --------------------------------------------------------------
<S> <C> <C> <C>
0.07% 0.03% 0.02% 0.07%
- --------------------------------------------------------------
</TABLE>
Eaton Vance, its affiliates and its predecessor companies have been
managing assets of individuals and institutions since 1924 and managing
investment companies since 1931. In addition to acting as the administrator of
the Fund, Eaton Vance or its affiliates act as investment adviser to investment
companies and various individual and institutional clients with assets under
management of approximately $15 billion. Eaton Vance is a wholly-owned
subsidiary of Eaton Vance Corp. ("EVC"), a publicly held holding company. EVC,
through its subsidiaries and affiliates, engages in investment management and
marketing activities, fiduciary and banking services, oil and gas operations,
real estate investment consulting and management, and the development of
precious metals properties.
HOW THE FUND VALUES ITS SHARES
The net asset value per share of the Fund is computed twice on each day the
New York Stock Exchange (the "Exchange") is open, at noon 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 the Fund's custodian (as agent for the Fund) in the
manner authorized by the Trustees of the Trust. The Trustees of the Trust 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.
<TABLE>
<CAPTION>
ANNUAL % ADVISORY FEE RATES
----------------------------------------------------------- Aggregate Fee Rate Paid
Under $100 Million to Over Net Asset Value for the Fiscal Year
$100 Million $500 Million $500 Million at 12/31/94 Ended 12/31/94[1]
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
0.35% 0.32% 0.30% $68,876,842 0.35%
- ------------------------------------------------------------------------------------------------------------------------------
<FN>
[1] To enhance the net income of the Fund, Wright reduced its advisory fee by $114,912 or from 0.35% to 0.09%.
</FN>
</TABLE>
<PAGE>
HOW TO BUY SHARES
Shares of the Fund are sold without a sales charge at the net asset value
next determined after the receipt of a purchase order as described below. Shares
purchased before noon will earn interest for that day. Shares purchased in the
afternoon will start to earn interest the next business day. The minimum initial
purchase of shares is $1,000. There is no minimum amount required for subsequent
purchases. The $1,000 minimum initial investment is waived for Bank Draft
Investing accounts, which may be established with an investment of $50 or more
with a minimum of $50 applicable to each subsequent investment. The Fund
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.
BY WIRE: Investors may purchase shares by transmitting immediately
available funds (Federal Funds) by wire to:
Federal Reserve Bank of Boston
A/C Investors Bank & Trust Company
for Wright U.S. Treasury Money Market Fund
Name and Account Number of Shareholder's Account
Initial purchase - Upon making an initial investment by wire, an investor
must first telephone the Order Department of the Fund at 800-225-6265 to advise
of the action and to be assigned an account number. If this telephone call is
not made, it may not be possible to process the order promptly. In addition, an
Account Instructions form, which is available through WISDI, should be promptly
forwarded to The Shareholder Services Group, Inc., (the "Transfer Agent") at the
following address:
Wright Managed Investment Funds
BOS725
P.O. Box 1559
Boston, Massachusetts 02104
Subsequent Purchases - Additional investments may be made at any time
through the wire procedure described above. The Fund's Order Department must be
immediately advised by telephone at 800-225-6265 of each transmission of funds
by wire.
BY MAIL: Initial Purchases - The Account Instructions form available
through WISDI should be completed by an investor, signed and mailed 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 the Wright U.S. Treasury Money
Market Fund, and mailed to the Transfer Agent at the above address.
Subsequent Purchases - Additional purchases may be made at any time by an
investor 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 the Fund at the
above address. For certain institutional investors, the sub-account, if any, to
which the subsequent purchase is to be credited should be identified together
with the sub-account number and, unless otherwise agreed, the name of the
sub-account.
BANK DRAFT INVESTING - FOR REGULAR SHARE ACCUMULATION: Cash investments of
$50 or more may be made through the shareholder's checking account via bank
draft each month or quarter. The $1,000 minimum initial investment and small
account redemption policy are waived for Bank Draft Investing accounts.
Transactions in the money market instruments in which the Fund invests
normally require immediate settlement in Federal Funds. The Fund intends at all
times to be as fully invested as is feasible in order to maximize its earnings.
Accordingly, purchase orders will be executed at the net asset value next
determined (see "How The Fund Values Its Shares") after their receipt by a Fund
if the Fund has received payment in cash or in Federal Funds. Such Federal Funds
must be received by 4:00 P.M. on a given day to be included in the assets of the
Fund as of the close
<PAGE>
of business on that date and for dividends to commence accruing on
shareholders' accounts on the following day. If remitted in other than the
foregoing manner, such as by check, purchase orders will be executed when the
check has been converted into Federal Funds, normally as of the close of
business on the second Boston business day after receipt.
HOW SHAREHOLDER ACCOUNTS ARE MAINTAINED
Upon the initial purchase of Fund shares, an account will be opened for the
account of the investor or sub-account of certain institutional investors.
Subsequent investments may be made at any time by mail to the Transfer Agent or
by wire, as noted above. Distributions paid in additional shares are credited to
Fund accounts monthly. Confirmation statements indicating total shares of the
Fund owned in the account or each sub-account will be mailed to shareholders of
record monthly and at the time of each purchase or redemption. The issuance of
shares will be recorded on the books of the Fund. The Trust does not issue share
certificates.
DISTRIBUTIONS BY THE FUND
Any net income earned by the Fund will be declared daily as a dividend to
shareholders of record at the time of declaration. Such dividends will be paid
on the last business day of each month and will be reinvested in additional
shares of the Fund unless the shareholder elects to receive the dividends in
cash. Net income will consist of interest accrued and discount earned, if any,
less any accrued estimated expenses subsequent to the prior calculation of net
income, if any, on the assets of the Fund. Distributions of net short-term
capital gains, if any, will be made at least annually shortly before or after
the close of the Fund's fiscal year.
TAXES
The Fund is treated as a separate entity for Federal income tax purposes
under the Internal Revenue Code of 1986, as amended (the "Code"). The Fund has
qualified and elected to be treated as a regulated investment company under the
Code and intends to continue to qualify as such. In order to so qualify, the
Fund must meet certain requirements with respect to sources of income,
diversification of assets, and distributions to shareholders. The Fund does not
pay Federal income or excise taxes to the extent that it distributes to its
shareholders all of its net investment income and net realized capital gains in
accordance with the timing requirements of the Code and will not be subject to
income, corporate excise or franchise taxation in Massachusetts as long as it
qualifies as a regulated investment company under the Code.
For Federal income tax purposes, distributions derived from the Fund's net
investment income and net short-term capital gains are taxable as ordinary
income, whether received in cash or reinvested in additional shares.
Distributions derived from net long-term capital gains, if any, will be treated
as long-term capital gains, whether paid in cash or reinvested in additional
shares. Since it is anticipated that virtually all of the Fund's income will be
derived from interest income rather than dividends, it is unlikely that any
portion of the dividends paid by the Fund will be eligible for the dividends
received deduction for corporations.
In order to avoid Federal excise tax, the Code requires that the Fund
distribute (or be deemed to have distributed) by December 31 of each calendar
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 or, by election, December 31 if the Fund's
taxable year ends on that date and 100% of any income or capital gain 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.
<PAGE>
Annually, shareholders of the Fund that are not exempt from information
reporting requirements will receive information on Form 1099 to assist in
reporting the prior calendar year's distributions and redemptions (including
exchanges) on Federal and state income tax returns. Dividends declared by the
Fund in October, November or December of any calendar year 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 the Fund their correct taxpayer
identification numbers and certain required certifications will be subject to
backup withholding of 31% on distributions made by the Fund other than on
proceeds of redemptions (including exchanges) of the Fund's shares. In addition,
the Trust may be required to impose backup withholding if it is notified by the
IRS or a broker that the taxpayer identification number is incorrect or that
backup withholding applies because of underreporting of interest or dividend
income. If such withholding is applicable, such distributions 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 a
U.S. withholding tax at the rate of 30% (or at a lower treaty rate) on dividends
representing ordinary income to them, and of foreign taxes to their investment
in the Fund.
Special tax rules apply to IRA 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.
Dividends and other distributions may, of course, also be subject to state
and local taxes. A state income (and possibly local income and/or intangible
property) tax exemption is generally available to the extent the Fund's
distributions are derived from interest on (or, in the case of intangibles
taxes, the value of its assets is attributable to) certain U.S. Government
obligations, including direct obligations of the U.S. Treasury, provided in some
states that certain thresholds for holdings of such obligations and/or reporting
requirements are satisfied. Shareholders should consult their own tax advisers
with respect to the tax status of distributions from the Fund or redemption of
Fund shares in their own states and localities.
HOW TO EXCHANGE SHARES
Shares of the Fund may be exchanged for shares of the Wright International
Blue Chip Equities Fund of The Wright Managed Equity Trust, or any of the funds
in The Wright EquiFund Equity Trust at net asset value at the time of the
exchange.
Participating bank trust departments and other institutional Wright clients
who are eligible to invest directly in the Wright Managed Investment Funds
("Institutional Investors") may exchange shares of the Fund at a price equal to
the net asset value for those of any of the funds in The Wright Managed Equity
Trust, The Wright Managed Income Trust, or The Wright EquiFund Equity Trust. The
term Institutional Investors includes banks, insurance companies, professional
investment advisers, broker/dealers, financial institutions, municipalities,
professional trustees, pension plans, other fiduciaries, and similar
institutions who have a relationship with Wright in addition to or other than as
a shareholder of the Fund or the Wright Managed Investment Funds.
The Shareholder Services Group, Inc. 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
<PAGE>
less than $25,000 and on deposit with The Shareholder Services Group, Inc. and
the investor has not disclaimed in writing the use of the privilege. To effect
such exchanges, call The Shareholder Services Group, Inc. at 800-262-1122 or
within Massachusetts, 617-573-9403, Monday through Friday, 9:00 a.m. to 4:00 p.m
(Eastern Standard 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 Trust, the Distributor nor The Shareholder Services
Group, Inc. 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, and if such procedures are
not followed, the Trust, the Fund, the Distributor or The Shareholder Service
Group, Inc. may be liable for any losses due to unauthorized or fraudulent
telephone instructions. Telephone instructions will be tape recorded. In times
of drastic economic or market changes, the telephone exchange privilege may be
difficult to implement. When calling to make a telephone exchange, shareholders
should have available their account number and social security or other taxpayer
identification numbers. Additional documentation may be required for written
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. Contact the Transfer Agent, The
Shareholder Services Group, Inc., for additional information concerning the
exchange privilege. 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.
A shareholder should read the prospectus of the other fund and consider the
differences in objectives and policies before making any exchange. Shareholders
should be aware that for Federal and state income tax purposes, an exchange is a
sale, but it generally will not result in a gain or loss provided that the Fund
has maintained a constant net asset value.
This exchange offer is available only in states where shares of such other
fund may be legally sold. Each exchange is subject to the applicable minimum
initial investment in the Fund.
HOW TO REDEEM OR SELL SHARES
Shares of the Fund will be redeemed at the net asset value next determined
after receipt of a redemption request in good order as described below. Proceeds
will be mailed within seven days of such receipt. However, at various times the
Fund may be requested to redeem shares for which it has not yet received good
payment. If the shares to be redeemed represent an investment made 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. For Federal and state income tax purposes, a redemption of shares is a
taxable transaction, but it generally will not result in recognition of a gain
or loss provided that the Fund has maintained a constant net asset value.
BY TELEPHONE: Shareholders who have made an appropriate election on their
account applications, or Participating Bank Trust Departments who have given
written authorization in advance, may effect a redemption by calling the Fund's
Order Department at 800-225-6265 (8:30 a.m. to 4:00 p.m. Eastern time). In times
when the volume of telephone redemptions is heavy, additional phone lines will
automatically be added by the Fund. However, in times of drastic economic or
market changes, a telephone redemption may be difficult to implement. When
calling to make a telephone redemption, shareholders should have available their
account number. A telephone redemption will be made at that day's net asset
value, provided that the telephone redemption request is received prior to 4:00
p.m. on that day. Telephone redemption requests received after 4:00 p.m. will be
effected at the net asset value determined for the next trading day. Payment
will be made by wire transfer to the bank account
<PAGE>
designated and normally, as indicated above, within one business day after
receipt of the redemption request in good order. Institutional Investors may
make redemptions and deposit the proceeds in checking or other accounts of
clients, as specified in instructions furnished to the Fund at the time of
initially purchasing Fund shares. Neither the Trust, the Principal Underwriter
nor The Shareholder Services Group, Inc. will be responsible for the
authenticity of redemption instructions received by telephone, provided that
reasonable procedures have been followed to confirm that instructions
communicated are genuine, and if such procedures are not followed, the Trust,
the Fund, the Distributor or The Shareholder Service Group, Inc. may be liable
for any losses due to unauthorized or fraudulent telephone instructions.
Also, shareholders may effect a redemption by calling the Funds' Transfer
Agent, The Shareholder Services Group, Inc., at 800-262-1122 (8:30 a.m. to 4:00
p.m. Eastern time) if the redemption involves shares valued at less than $25,000
and on deposit with The Shareholder Services Group, Inc. Payment will be made by
check to the address of record.
BY MAIL: A shareholder may also redeem all or any number of shares at any
time by mail by delivering the request with a stock power to the Transfer Agent,
The Shareholder Services Group, Inc., Wright Managed Investment Funds, BOS725,
P.O. Box 1559, Boston, Massachusetts 02104. As in the case of wire requests,
payments will normally be made within one business day after receipt of the
redemption request in good order. Good order means that written redemption
requests or stock powers must be endorsed by the record owner(s) exactly as the
shares are registered and the signature(s) must be guaranteed by a member of
either the Securities Transfer Association's STAMP program or the New York Stock
Exchange's Medallion Signature Program, or certain banks, savings and loan
institutions, credit unions, securities dealers, securities exchanges, clearing
agencies and registered securities associations as required by a regulation of
the Securities and Exchange Commission and acceptable to The Shareholder
Services Group, Inc. In addition, in some cases, good order may require the
furnishing of additional documents, such as where shares are registered in the
name of a corporation, partnership or fiduciary.
BY CHECK: Shareholders of the Fund may appoint Boston Safe Deposit & Trust
Company ("Boston Safe") their agent and may request that Boston Safe provide
them with special forms of checks drawn on Boston Safe. These checks may be made
payable by the shareholder to the order of any person in any amount of $500 or
more. When a check is presented to Boston Safe for payment, the number of full
and fractional shares required to cover the amount of the check will be redeemed
from the shareholder's account by Boston Safe as the shareholder's agent.
Through this procedure the shareholder will continue to be entitled to
distributions paid on his shares up to the time the check is presented to Boston
Safe for payment. If the amount of the check is greater than the value of the
shares held in the shareholder's account, for which the Fund has collected
payment, the check will be returned and the shareholder may be subject to extra
charges. Forms required to set up this service may be obtained from the
Principal Underwriter. Shareholders will be required to execute signature cards
and will be subject to Boston Safe's rules and regulations governing such
checking accounts. There is no charge to shareholders for this service. This
service may be terminated or suspended at any time by the Fund or Boston Safe.
The right to redeem shares of the Fund and to receive payment therefor may
be suspended at times (a) when the securities markets are closed, other than
customary weekend and holiday closings, (b) when trading is restricted for any
reason, (c) when an emergency exists as a result of which disposal by the Fund
of securities owned by it is not reasonably practicable or it is not reasonably
practicable for the Fund fairly to determine the value of its net assets, or (d)
when the Securities and Exchange Commission by order permits a suspension of the
right of redemption or a postponement of the date of payment or redemption.
<PAGE>
Although the Fund normally intends to redeem shares in cash, the Fund,
subject to compliance with applicable regulations, reserves the right to deliver
the proceeds of redemptions in the form of portfolio securities if deemed
advisable by the Trustees of the Trust. The value of any such portfolio
securities distributed will be determined in the manner as described under "How
The Fund Values Its Shares." If the amount of the Fund's shares to be redeemed
for a shareholder within a 90-day period exceeds the lesser of $250,000 or 1% of
the aggregate net asset value of the Fund at the beginning of such period, the
Fund reserves the right to deliver all or any part of such excess in the form of
portfolio securities. If portfolio securities were distributed in lieu of cash,
the shareholder would normally incur transaction costs upon the disposition of
any such securities.
Due to the relatively high cost of maintaining small accounts, the Fund
reserves the right to redeem fully at net asset value any account (including
accounts of clients of Institutional Investors) which at any time, due to
redemption or transfer, amounts to less than $1,000 for the Fund; any
shareholder who makes a partial redemption which reduces his account to less
than $1,000 would be subject to the Fund's right to redeem such account. Prior
to the execution of any such redemption, notice will be sent and the shareholder
will be allowed 60 days from the date of notice to make an additional investment
to meet the required minimum of $1,000. Thus, an investor making an initial
investment of $1,000 would not be able to redeem shares without being subject to
this policy.
OTHER INFORMATION
The Trust is a business trust established under Massachusetts law and is a
no-load, open-end management investment company. The Trust was established
pursuant to a Declaration of Trust dated February 17, 1983, as amended and
restated December 21, 1987, and further amended March 28, 1991 to change the
name from "The Wright Managed Bond Trust" to "The Wright Managed Income Trust."
The Trust's shares of beneficial interest have no par value. Shares of the
Trust may be issued in two or more series or "Funds". The Trust currently has,
in addition to the Fund, five other Funds, which are offered under a separate
prospectus. Each Fund's shares may be issued in an unlimited number by the
Trustees of the Trust. Each share of a Fund represents an equal proportionate
beneficial interest in that Fund and, when issued and outstanding, the shares
are fully paid and non-assessable by the relevant Fund. Shareholders are
entitled to one vote for each full share held. Fractional shares may be voted in
proportion to the amount of the net asset value of a Fund which they represent.
Voting rights are not cumulative, which means that the holders of more than 50%
of the shares voting for the election of Trustees of a Trust can elect 100% of
the Trustees and, in such event, the holders of the remaining less than 50% of
the shares voting on the matter will not be able to elect any Trustees. Shares
have no preemptive or conversion rights and are freely transferable. Upon
liquidation of a Fund, shareholders are entitled to share pro rata in the net
assets of the particular Fund available for distribution to shareholders, and in
any general assets of the relevant Trust not allocated to a particular Fund by
the Trustees.
As permitted by Massachusetts law, there will normally be no meetings of
shareholders for the purpose of electing Trustees unless and until such time as
less than a majority of the Trustees holding office have been elected by
shareholders. In such an event the Trustees then in office will call a
shareholders' meeting for the election of Trustees. Except for the foregoing
circumstances and unless removed by action of the shareholders in accordance
with each Trust's by-laws, the Trustees shall continue to hold office and may
appoint successor Trustees. The Trustees shall only be liable in cases of their
willful misfeasance, bad faith, gross negligence, or reckless disregard of their
duties.
<PAGE>
The Trust's by-laws provide that no person shall serve as a Trustee if
shareholders holding two-thirds of the outstanding shares have removed such
person from that office either by a written declaration filed with the Trust's
custodian or by votes cast at a meeting called for that purpose. The Trustees
shall promptly call a meeting of the shareholders for the purpose of voting upon
a question of removal of a Trustee when requested so to do by the record holders
of not less than 10 per centum of the outstanding shares.
TAX-SHELTERED RETIREMENT PLANS
The Fund is a suitable investment for 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.
For more information, write to:
Wright Investors' Service Distributors, Inc.
1000 Lafayette Boulevard
Bridgeport, Connecticut 06604
or call:
(203) 330-5060
<PAGE>
WRIGHT MONEY
MARKET FUND
PROSPECTUS
MAY 1, 1995
WRIGHT U.S. TREASURY MONEY MARKET FUND
- -------------------------------------------------------------------------------
INVESTMENT ADVISER
Wright Investors' Service
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
24 Federal Street
Boston, Massachusetts 02110
TRANSFER AGENT
The Shareholder Services Group, Inc.
Wright Managed Investment Funds
BOS 725
P.O. Box 1559
Boston, Massachusetts 02104
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
May 1, 1995
THE WRIGHT MANAGED INCOME TRUST
24 Federal Street
Boston, Massachusetts 02110
- -------------------------------------------------------------------------------
Wright Government Obligations Fund
Wright Near Term Bond Fund
Wright Total Return Bond Fund
Wright Insured Tax Free Bond Fund
Wright Current Income Fund
- -------------------------------------------------------------------------------
Table of Contents Page
General Information And History......................... 2
Investment Objectives And Policies...................... 3
Investment Restrictions................................. 6
Officers And Trustees................................... 7
Control Persons And Principal Holders Of Shares......... 9
Investment Advisory And Administrative Services......... 10
Custodian............................................... 12
Independent Certified Public Accountants................ 13
Brokerage Allocation.................................... 13
Fund Shares And Other Securities........................ 14
Purchase, Exchange, Redemption And Pricing Of Shares.... 15
Principal Underwriter................................... 15
Calculation Of Performance And Yield Quotations......... 17
Financial Statements.................................... 20
Appendix ............................................... 50
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 WRIGHT MANAGED INCOME
TRUST (THE "TRUST') DATED MAY 1, 1995; A COPY OF WHICH MAY BE OBTAINED WITHOUT
CHARGE FROM WRIGHT INVESTORS' SERVICE DISTRIBUTORS, INC., 1000 LAFAYETTE
BOULEVARD, (TELEPHONE: 800-888-9471).
<PAGE>
GENERAL INFORMATION AND HISTORY
The Trust is a no-load, open-end, management investment company organized
as a Massachusetts business trust. The Trust was organized in 1983. The Trust
has the five series described herein (the "Funds") plus one series offered under
a separate prospectus and statement of additional information. Each Fund is a
diversified fund.
As permitted by Massachusetts law, there will normally be no meetings of
shareholders for the purpose of electing Trustees of the Trust unless and until
such time as less than a majority of the Trustees holding office have been
elected by its shareholders. In such an event, the Trustees then in office will
call a shareholders' meeting for the election of Trustees. Subject to the
foregoing circumstances, the Trustees will continue to hold office and may
appoint successor or new Trustees except that, pursuant to provisions of the
Investment Company Act of 1940 (the "1940 Act"), which are set forth in the
By-laws of the Trust, the shareholders can remove one or more of its Trustees.
The 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 are affected, a majority of such Fund's outstanding shares. The
Trustees are authorized to make amendments to the Declaration of Trust that do
not have a material adverse affect on the interests of shareholders. The Trust
may be terminated (i) upon the sale of the Trust's assets to another diversified
open-end management investment company, if approved by the holders of two-thirds
of the outstanding shares of the Trust, except that if the Trustees recommend
such sale of assets, the approval by the vote of a majority of the Trust's
outstanding shares will be sufficient, or (ii) upon liquidation and distribution
of the assets of the Trust, if approved by a majority of its Trustees or by the
vote of a majority of the Trust's outstanding shares. If not so terminated, the
Trust may continue indefinitely.
The Trust's Declaration of Trust further provides that the Trust's Trustees
will not be liable for errors of judgment or mistakes of fact or law; however,
nothing in the 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 Trust is an organization of the type commonly known as a "Massachusetts
business trust." Under Massachusetts law, shareholders of such a trust may,
under certain circumstances, be held personally liable as partners for the
obligations of the trust. The 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. The 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 the 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 Trust has retained Wright Investors' Service of Bridgeport, Connecticut
("Wright" or "Investment Adviser") as investment adviser to carry out the
management, investment and reinvestment of its assets. The Trust has retained
Eaton Vance Management ("Eaton Vance"), 24 Federal Street, Boston, Massachusetts
02110, as administrator of the Trust's business affairs.
<PAGE>
INVESTMENT OBJECTIVES AND POLICIES
The investment objective of each Fund is to provide a high level of return
consistent with the quality standards and average maturity for such Fund. The
securities in which each Fund may invest are described below. Except as
otherwise indicated, the investment objective and policies of the Funds may be
changed by the Trustees of the The Wright Managed Income Trust (the "Trust")
without a vote of the Funds' shareholders.
WRIGHT GOVERNMENT OBLIGATIONS FUND (WGOF). WGOF invests in U.S. Treasury
bills, notes and bonds, and other obligations of the U.S. Government and its
agencies and instrumentalities which are guaranteed as to principal and interest
by the full faith and credit of the U.S. Government, and the interest from which
is not expected to be taxable by state or municipal governments. The average
portfolio maturity is expected to range from ten to twenty years. For a further
description of the WGOF Fund's investments, see the Appendix beginning at page
50.
WRIGHT NEAR TERM BOND FUND (WNTB). WNTB invests in U.S. Government
obligations and other debt instruments of high quality, with an average weighted
maturity expected to be 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.
Government securities and who is also seeking to limit fluctuation of capital
(i.e., compared with longer-term U.S. Government securities). Portfolio
securities will consist entirely of U.S. Government obligations, such as U.S.
Treasury bills, notes and bonds, and obligations of agencies and
instrumentalities of the U.S. Government, FDIC-insured certificates of deposit
and bankers' acceptances issued by FDIC-insured institutions.
Investments in corporate obligations will be limited to those rated at the
time of investment as A or better by Standard and Poor's Ratings Group
("Standard & Poor's") or by Moody's Investors Service, Inc. ("Moody's") or, if
not rated by such rating organizations, of comparable quality as determined by
the Trust's Trustees, provided they also meet the Wright Quality Rating
Standards set forth in the Appendix.
This Fund will purchase only commercial paper rated A-1 by Standard &
Poor's or rated P-1 by Moody's or, if not rated, of comparable quality as
determined by the Trust's Trustees. In any case, such paper must also meet
Wright Quality Rating Standards.
WRIGHT TOTAL RETURN BOND FUND (WTRB). WTRB invests in a diversified
portfolio of high-quality bonds and other debt securities of high quality with
an average weighted maturity that, in the judgment of the Fund's investment
adviser, produces the best total return, i.e., the highest total of ordinary
income plus capital appreciation. 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 or by Moody's or, if
not rated by such rating organizations, of comparable quality as determined by
the Investment Adviser pursuant to guidelines established by the Trust's
Trustees. In any case, they must also meet Wright Quality Rating Standards. In
any case, they must also meet Wright Quality Rating Standards.
WRIGHT INSURED TAX FREE BOND FUND (WTFB). WTFB invests in a high-grade
portfolio consisting primarily of Municipal Securities (as defined in the
Appendix) that provide current interest income exempt from regular Federal
income tax. In addition, under normal market conditions, at least 65% of the
<PAGE>
Fund's investments will consist of municipal securities that are covered by
insurance guaranteeing the timely payment of principal and interest. However,
assets of this Fund may be temporarily invested in securities the interest
income from which may be subject to regular Federal income tax (1) if, in the
Investment Adviser's opinion, investment considerations make it advisable to do
so; (2) to meet temporary liquidity requirements; and (3) during the period
between the commitment to purchase municipal bonds and the settlement date of
such purchases.
Except as provided above, the Fund's annual income is expected to consist
of interest exempt from regular Federal income tax. Rather than simply hold a
fixed portfolio of bonds, the Investment Adviser will attempt to take advantage
of opportunities in the market place to achieve a higher total return (i.e., the
combination of income and capital performance over the long term) when such
action is not inconsistent with the objective of providing a high level of
tax-free income. Distributions by the Fund that are exempt from regular Federal
income tax may not be exempt from the Federal alternative minimum tax or from
state or local taxes and distributions, if any, made from realized capital gains
are subject to Federal, state and local taxes where applicable.
In addition, the market prices of municipal bonds, like those of taxable
debt securities, vary inversely with interest rate changes during the period
prior to maturity. As a result, the net asset value per share of the Fund can be
expected to fluctuate and shareholders may receive more or less than the
purchase price for shares which they redeem. The Fund will have an average
weighted maturity that, in the judgment of the Fund's investment adviser,
produces the best compromise between return and stability of principal.
All municipal securities purchased for WTFB will be covered by insurance
guaranteeing the timely payment of principal and interest, such insurance to be
"new issue" insurance, "secondary market" insurance, or "portfolio" insurance,
all as defined in the current Prospectus of the Trust.
If the Investment Adviser believes that "defensive" or other investment
considerations make it advisable to do so, up to 20% of the Fund's net assets
may be held in cash or invested in short-term taxable investments such as (1)
U.S. Treasury bills, notes, and bonds; (2) obligations of agencies and
instrumentalities of the U.S. Government; and (3) money market instruments, such
as high-quality domestic bank certificates of deposit, finance company and
corporate commercial paper and bankers' acceptances.
WRIGHT CURRENT INCOME FUND (WCIF). WCIF 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 Fund may invest include direct obligations of the U.S. Government, such as
U.S. Treasury bills, notes, and bonds; 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 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 Fund 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
<PAGE>
FNMA and collateralized mortgage obligations issued by FHLMC. In addition,
the Fund may invest in collateralized mortgage obligations issued by such
private entities as financial institutions, mortgage bankers and subsidiaries of
home building companies, provided that they meet Wright Quality Rating
Standards.
The corporate debt securities in which the Fund may invest include
commercial paper and other short-term instruments rated A-1 by Standard & Poor's
or P-1 by Moody's. The Fund may invest in unrated debt securities if these are
determined by the Investment Adviser pursuant to guidelines established by the
Trust's Trustees to be of a quality comparable to that of the rated securities
in which the Fund may invest. All of the corporate debt securities purchased by
the Fund must meet Wright Quality Rating Standards.
The Fund may enter into repurchase agreements with respect to any
securities in which it may invest.
GENERAL POLICIES OF THE FUNDS. The Trust does not ordinarily expect to
establish investment reserves in cash equivalent securities (i.e., non-equity
securities which are readily converted into cash) in its taxable intermediate
and longer term Funds, but may do so from time to time should there be an influx
of investors' cash at a time when securities of an appropriate character or
quality are in short supply. Each of the taxable Funds may invest in
certificates of deposit, bankers' acceptances and other obligations of domestic
banks, including thrift institutions. In all cases, high-quality standards will
apply to such Funds' bank investments, meaning that such investments will be
rated within the two highest ratings by any major rating service or, if the
instrument is not rated, will be of comparable quality as determined by the
Trust's Trustees. The Funds may invest in bank obligations and instruments of
banks which have other relationships with the Funds, Eaton Vance, Wright or
Investors Bank & Trust Company, an affiliate of Eaton Vance.
Investments by WTFB will be confined to securities of those issuers which
meet the quality standards of Wright and to obligations that consist of:
(1) Municipal Securities which are rated at the time of purchase within the
two highest grades by Moody's (Aaa or Aa) or by Standard and Poor's
(AAA or AA), or, in the case of municipal notes, rated at least MIG 1
by Moody's or SP-1 by Standard & Poor's;
(2) Unrated Municipal Securities which, in the opinion of the Investment
Adviser, have credit characteristics equivalent to or better than
obligations rated Aa or MIG 1 by Moody's, or AA or SP-1 by Standard and
Poor's;
(3) Tax-exempt commercial (municipal) paper which is rated in the highest
grade by such rating services (P-1 or A-1, respectively) or which, in
the opinion of the Investment Adviser, has credit characteristics
equivalent to or better than such rated paper;
(4) Obligations, the interest on which is exempt from Federal income tax
which at the time of purchase are backed by the full faith and credit
of the U.S. Government as to payment of principal and interest;
(5) Obligations, the interest on which is exempt from Federal income tax
which at the time of purchase are insured as to principal and interest
by an agency, insurance company, or financial organization acceptable
to the Funds' investment adviser (e.g., the Municipal Bond Investors
Assurance Corporation [MBIA]);
<PAGE>
(6) Temporary investments in taxable securities as noted above in the
sections relating to WTFB, and
(7) Cash.
For a further description of the instruments and ratings discussed above in
connection with the various Income Funds see the Appendix.
INVESTMENT RESTRICTIONS
The following investment restrictions have been adopted by each Fund and
may be changed with respect to a Fund only by the vote of a majority of the
Fund'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 if
the holders of more than 50% of the shares are present or represented at the
meeting or (b) more than 50% of the shares of the Fund. Accordingly, each Fund
may not:
(1) Borrow money in excess of 1/3 of the current market value of the net
assets of a Fund (excluding the amount borrowed) and then only if such
borrowing is incurred as a temporary measure for extraordinary or
emergency purposes or to facilitate the orderly sale of portfolio
securities to accommodate redemption requests; or issue any securities
of a Fund other than its shares of beneficial interest except as
appropriate to evidence indebtedness which the Fund is permitted to
incur. To the extent that a Fund purchases additional portfolio
securities while such borrowings are outstanding, such Fund may be
considered to be leveraging its assets, which entails the risk that the
costs of borrowing may exceed the return from the securities purchased.
(The Trust anticipates paying interest on borrowed money at rates
comparable to a Fund's yield and the Trust has no intention of
attempting to increase any Fund's net income by means of borrowing);
(2) Pledge, mortgage or hypothecate the assets of any Fund to an extent
greater than 1/3 of the total assets of the Fund taken at market;
(3) Invest more than 5% of a Fund's total assets taken at current market
value in the securities of any one issuer (other than securities issued
or guaranteed by the U.S. Government or its agencies or
instrumentalities) or allow a Fund to purchase more than 10% of the
voting securities of any one issuer;
(4) Purchase or retain securities of any issuer if 5% of the issuer's
securities are owned by those officers and Trustees of the Trust or its
manager, investment adviser or administrator who own individually more
than 1/2 of 1% of the issuer's securities;
(5) Purchase securities on margin, make short sales except sales against
the box, write or purchase or sell any put options (except with respect
to securities held by any Fund investing primarily in U.S. Government
securities or in securities the interest on which is exempt from
Federal income tax), or purchase warrants;
(6) Buy or sell real estate unless acquired as a result of ownership of
securities;
(7) Purchase any securities which would cause more than 25% of the market
value of a Fund's total assets at the time of such purchase to be
invested in the securities of issuers having their principal business
activities in the same industry, provided that there is no limitation
in respect to investments in securities issued or guaranteed by the
U.S. Government or its agencies or instrumentalities and utility
companies, gas, electric, water and telephone companies are considered
as separate industries; except that, with respect to any Fund which has
a policy of being primarily invested in obligations whose interest
income is
<PAGE>
exempt from Federal income tax, the restriction shall be that the 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 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;
(8) Underwrite securities issued by other persons except insofar as the
Trust may technically be deemed an underwriter under the Securities Act
of 1933 in selling a portfolio security;
(9) Make loans, except to the extent that the purchase of debt instruments
in accordance with the Trust's investment objective and policies may be
deemed to be loans; or
(10)Purchase from or sell to any of its Trustees and officers, its manager,
administrator, or investment adviser, its principal underwriter, if
any, or the officers and directors of said manager, administrator,
investment adviser or principal underwriter, portfolio securities of
any Fund.
The issuer of a pollution control or industrial development bond for
purposes of investment restriction (7) is the entity or entities whose assets
and revenues will provide the source for payment of principal and interest on
the bond. A governmental or other entity that guarantees such a bond may also be
considered the issuer of a separate security for purposes of this restriction.
In addition, while not fundamental policies, so long as the shares of any
Fund are registered for sale in Texas, and while the following are generally
required conditions of registration in that State, the Trust undertakes that
each Fund will limit its investment in warrants, valued at the lower of cost or
market, to 5% of the value of the Fund's net assets (included within that
amount, but not to exceed 2% of the value of the Fund's net assets, may be
warrants which are not listed on the New York or American Stock Exchange.
Warrants acquired by the Fund in units or attached to securities may be deemed
to be without value); no Fund will purchase oil, gas or other mineral leases or
purchase partnership interests in oil, gas or other mineral exploration or
development programs; no Fund will purchase or sell real property (including
limited partnership interests, but excluding readily marketable interests in
real estate investment trusts or readily marketable securities of companies
which invest in real estate).
If a percentage restriction contained in any Fund's investment policies is
adhered to at the time of investment, a later increase or decrease in the
percentage resulting from a change in the value of portfolio securities or the
Fund's net assets will not be considered a violation of such restriction.
OFFICERS AND TRUSTEES
The officers and Trustees of the Trust are listed below. 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" of the Trust, Wright, 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"), as defined in the 1940 Act by virtue of their affiliation
with either the Trust, Wright, Eaton Vance, BMR, EVC or EV, are indicated by an
asterisk (*).
<PAGE>
PETER M. DONOVAN (52), PRESIDENT AND TRUSTEE*
President and Director of Wright Investors' Service; Vice President, Treasurer
and a Director of Wright Investors' Service Distributors, Inc.
Address: 1000 Lafayette Boulevard, Bridgeport, CT 06604
H. DAY BRIGHAM, JR. (68), VICE PRESIDENT, SECRETARY AND TRUSTEE*
Vice President of Eaton Vance, BMR, EVC and EV and Director, EV and EVC;
Director, Trustee and officer of various investment companies managed by Eaton
Vance or BMR; Director, Investors Bank & Trust Company
Address: 24 Federal Street, Boston, MA 02110
WINTHROP S. EMMET (84), TRUSTEE
Attorney at Law, Stockbridge, MA; Trust Officer, First National City Bank,
New York, NY (1963-1971)
Address: Box 327, West Center Road, West Stockbridge, MA 01266
LELAND MILES (71), TRUSTEE
President Emeritus, University of Bridgeport (1987- present); President,
University of Bridgeport (1974-1987); Director, United Illuminating Company
Address: Tide Mill Landing, 2425 Post Road, Suite 102, Southport, CT 06490
A.M. MOODY III (58), VICE PRESIDENT & TRUSTEE*
Senior Vice President, Wright Investors' Service; President, Wright
Investors' Service Distributors, Inc.
Address: 1000 Lafayette Boulevard, Bridgeport, CT 06604
LLOYD F. PIERCE (76), 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: 125 Gull Circle North, Daytona Beach, FL 32119
GEORGE R. PREFER (60), TRUSTEE
Retired President and Chief Executive Officer, Muller Data Corp., New York,
NY (President 1983- 1986 and 1989-1990); President and Chief Executive Officer,
InvestData Corporation, A Mellon Financial Services Company (1986-1989)
Address: 7738 Silver Bell Drive, Sarasota, FL 34241
RAYMOND VAN HOUTTE (70), 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., Evaported
Metal Products and Ithaco, Inc.
Address: One Strawberry Lane, Ithaca, NY 14850
JUDITH R. CORCHARD (56), VICE PRESIDENT
Executive Vice President, Investment Management: Senior Investment Officer;
Vice Chairman of the Investment Committee and Director, Wright Investors'
Service.
Address: 1000 Lafayette Boulevard, Bridgeport, CT 06604
JAMES L. O'CONNOR (50), 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 (59), 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. (43), 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 Trust on December 18, 1991.
Address: 24 Federal Street, Boston, MA 02110
RICHARD E. HOUGHTON (64), ASSISTANT SECRETARY
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
JOHN P. RYNNE (52), ASSISTANT SECRETARY
Vice President and Comptroller of Eaton Vance, BMR and EV and Comptroller of EVC
Address: 24 Federal Street, Boston, MA 02110
<PAGE>
All of the Trustees and officers hold identical positions with The Wright
Managed Equity Trust, The Wright Managed Blue Chip Series Trust (except Mr.
Miles) and The Wright EquiFund Equity Trust. The fees and expenses of those
Trustees of the Trust (Messrs. Emmet, Miles, Pierce, Prefer and Van Houtte) who
are not affiliated persons of the Trust are paid by the Funds and other series
of the Trust. They also received additional payments from other investment
companies for which Wright provides investment advisory services. The Trustees
who are interested persons of the Trust receive no compensation from the Trust.
For Trustee compensation for the fiscal year ended December 31, 1994, see the
table below.
Messrs. Emmet, Miles, Pierce, Prefer and Van Houtte are members of the
Special Nominating Committee of the Trustees of the Trust. The Special
Nominating Committee's function is selecting and nominating individuals to fill
vacancies, as and when they occur, in the ranks of those Trustees who are not
"interested persons" of the Trust, Eaton Vance or Wright. The Trust does not
have a designated audit committee since the full board performs the functions of
such committee.
CONTROL PERSONS AND
PRINCIPAL HOLDERS OF SHARES
As of March 31, 1995, the Trustees and officers of the Trust, as a group,
owned in the aggregate less than 1% of the outstanding shares of each Fund. The
Funds' shares are held primarily by Participating Trust Departments either for
their own account or for the accounts of their clients. From time to time,
several of these Participating Trust Departments are the record owners of 5% or
more of the outstanding shares of a particular Fund. To date, the Funds'
experience has been that such shareholders do not continuously hold in excess of
5% or more of a Fund's outstanding shares for extended periods of time. Should a
shareholder continuously hold 5% or more of a Fund's outstanding shares for an
extended period of time (a period in excess of a year), this would be disclosed
by an amendment to this Statement of Additional Information showing such
shareholder's name, address and percentage of ownership. Upon request, the Trust
will provide shareholders with a list of all shareholders holding 5% or more of
a Fund's outstanding shares as of a current date.
On March 31, 1995, the number of Participating Trust Departments which were
the record owners of
<TABLE>
<CAPTION>
COMPENSATION TABLE - FISCAL YEAR ENDED DECEMBER 31, 1994
The Wright Managed Income Trust -- Registered Investment Companies (6)
Aggregate Compensation from Pension Benefits Estimated Total Compensation
Trustees The Wright Managed Income Trust Accrued Annual Benefits Paid(1)
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Winthrop S. Emmet $1,100 None None $5,000
Leland Miles $1,100 None None $5,000
Lloyd F. Pierce $1,100 None None $5,000
George R. Prefer $1,100 None None $5,000
Raymond Van Houtte $1,100 None None $5,000
- -------------------------------------------------------------------------------------------------------------------------------
(1) Total compensation paid is from The Wright Managed Income Trust (6 funds)
and the other boards in the Wright Fund complex (17 Funds) for a total of 23
Funds.
</TABLE>
<PAGE>
more than 5% of the outstanding shares of the Funds was as follows: WGOF,5;
WNTB, 3; WTRB, 4; WTFB, 5; and WCIF, 1.
INVESTMENT ADVISORY AND
ADMINISTRATIVE SERVICES
The Trust has engaged Wright to act as each Fund's investment adviser
pursuant to an Investment Advisory Contract dated December 21, 1987 (the
"Investment Advisory Contract"). Wright, located at 1000 Lafayette Boulevard,
Bridgeport, Connecticut, was founded in 1960 and currently provides investment
services to clients throughout the United States and abroad. John Winthrop
Wright may be considered a controlling person of Wright by virtue of his
position as Chairman of the Board of Directors of Wright, and by reason of his
ownership of more than a majority of the outstanding shares of Wright.
The Investment Advisory Contract provides that Wright will carry out the
investment and reinvestment of the assets of the Funds, will furnish
continuously an investment program with respect to the Funds, will determine
which securities should be purchased, sold or exchanged, and will implement such
determinations. Wright will furnish to the Funds 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 of the Trust. In return for these
services, each Fund is obligated to pay a monthly advisory fee calculated at the
rates set forth in the table below.
Wright does not intend to exclude from the calculation of the investment
advisory fees it charges Participating Trust Departments the assets of
Participating Trust Departments which are invested in shares of the Funds.
Accordingly, a Participating Trust Department may pay an advisory fee to Wright
as a client of Wright in accordance with Wright's customary investment advisory
fee schedule charged to Participating Trust Departments and at the same time, as
a shareholder in a Fund, bear its share of the advisory fee paid by the Fund to
Wright as described above.
The Trust has engaged Eaton Vance to act as the administrator for each Fund
pursuant to an Administration Agreement dated November 1, 1990. Eaton Vance, or
its affiliates act as investment adviser to investment companies and various
individual and institutional clients with assets under management of
approximately $15 billion. Eaton Vance is a wholly-owned subsidiary of EVC, a
publicly held holding company.
<TABLE>
<CAPTION>
Annual % Advisory Fee Rates
------------------------------------------
Under $100 Mil$250 Mil $500 Mil Over Fees Earned for the
$100 to to to $1 Fiscal Year Ended December 31
Million $250 Mil$500 Mil$1 Billion Billion 1992 1993 1994
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Wright Government Obligations Fund (WGOF) 0.40% 0.46% 0.42% 0.38% 0.33% $ 122,714 $ 122,610 $ 84,992
Wright Near Term Bond Fund (WNTB) 0.40% 0.46% 0.42% 0.38% 0.33% $1,203,812 $1,549,112 $1,266,025
Wright Total Return Bond Fund (WTRB) 0.40% 0.46% 0.42% 0.38% 0.33% $ 709,495 $1,054,524 $ 824,625
Wright Insured Tax Free Bond Fund (WTFB)(1) 0.40% 0.46% 0.42% 0.38% 0.33% $ 41,686 $ 66,443 $ 57,725(1)
Wright Current Income Fund (WCIF) 0.40% 0.46% 0.42% 0.38% 0.33% $ 327,551 $ 437,383 $ 403,012
- ----------------------------------------------------------------------------------------------------------------------------
(1)To enhance the net income of the Fund, Wright reduced its advisory fees
during each of the fiscal years ended December 31, 1994, 1993 and 1992 by
$29,956, $8,267 and $24,753, respectively.
</TABLE>
<PAGE>
Under the Administration Agreement, Eaton Vance is responsible for managing
the business affairs of each Fund, subject to the supervision of the Trust's
Trustees. 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 Trust's custodian and transfer agent,
providing assistance in connection with the Trustees' and shareholders' meetings
and other administrative services necessary to conduct each Fund's business.
Eaton Vance will not provide any investment management or advisory services to
the Funds. For its services under the Administration Agreement, Eaton Vance
receives monthly administration fees at the annual rates set forth in the table
below.
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 Landon T. Clay, H. Day Brigham, Jr., 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 and Ralph Z. Sorenson. Mr. Clay is chairman,
and Mr. Gardner is president and chief executive officer 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 which expires December 31, 1996, the Voting Trustees
of which are Messrs. Brigham, Clay, Gardner, Hawkes, and Rowland. 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
and Directors of EVC and EV. As of April 1, 1995, Messrs. Clay, Gardner and
Hawkes each owned 24% of such voting trust receipts. Messrs. Rowland and Brigham
each owned 15% and 13%, respectively, of such voting trust receipts. Messrs.
Brigham and Rynne are officers or Trustees of the Trust, and are members of the
Eaton Vance, EVC, BMR and EV organizations. Messrs. Austin, Houghton and
O'Connor and Ms. Sanders are officers of the Trust 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 of the stock of Energex Corporation which is engaged
in oil and gas operations. EVC owns all of the stock of Marblehead Energy Corp.
(which engages in oil and gas operations) and 77.3% of the stock of Investors
Bank & Trust Company, which provides custodial, trustee and other fiduciary
<TABLE>
Annual % Administration Fee Rates
----------------------------------------
Under $100 Million$250 Million Over Fees Paid for the
$100 to to $500 Fiscal Year Ended December 31
Million $250 Million$500 Million Million 1992 1993 1994
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Wright Government Obligations Fund (WGOF) 0.10% 0.04% 0.03% 0.02% $ 30,678 $ 30,653 $ 21,245
Wright Near Term Bond Fund (WNTB) 0.10% 0.04% 0.03% 0.02% $167,817 $192,794 $172,293
Wright Total Return Bond Fund (WTRB) 0.10% 0.04% 0.03% 0.02% $126,913 $156,793 $136,920
Wright Insured Tax Free Bond Fund (WTFB) 0.10% 0.04% 0.03% 0.02% $ 10,425 $ 16,607 $ 14,431
Wright Current Income Fund (WCIF) 0.10% 0.04% 0.03% 0.02% $ 81,949 $107,639 $ 97,754
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
services to investors, including individuals, employee benefit plans,
corporations, investment companies, savings banks and other institutions. In
addition, Eaton Vance owns all the stock of Northeast Properties, Inc., which is
engaged in real estate investment and consulting and management. EVC owns all of
the stock of Fulcrum Management, Inc. and MinVen, Inc., which are engaged in the
development of precious metal properties. EVC, EV, Eaton Vance and BMR may also
enter into other businesses.
The Trust will be responsible for all of its expenses not expressly stated
to be payable by Wright under its Investment Advisory Contract or by Eaton Vance
under its Administration Agreement, including, without limitation, the fees and
expenses of its custodian and transfer agent, including those incurred for
determining each Fund's net asset value and keeping each Fund's books; the cost
of share certificates; membership dues in investment company organizations;
brokerage commissions and fees; fees and expenses of registering its shares;
expenses of reports to shareholders, proxy statements, and other expenses of
shareholders' meetings; insurance premiums; printing and mailing expenses;
interest, taxes and corporate fees; legal and accounting expenses; expenses of
Trustees not affiliated with Eaton Vance or Wright; distribution expenses
incurred pursuant to the Trust's distribution plan; and investment advisory and
administration fees. The Trust will also bear expenses incurred in connection
with litigation in which the Trust is a party and the legal obligation the Trust
may have to indemnify its officers and Trustees with respect thereto.
The Trust's Investment Advisory Contract and Administration Agreement will
remain in effect until February 28, 1996. The Trust's Investment Advisory
Contract may be continued with respect to a Fund from year to year thereafter so
long as such continuance after February 28, 1996 is approved at least annually
(i) by the vote of a majority of the Trustees who are not "interested persons"
of the 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 shares of that
Fund. The Trust's Administration Agreement may be continued from year to year
after February 28, 1996 so long as such continuance is approved annually by the
vote of a majority of the Trustees. Each agreement may be terminated as to a
Fund 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 that Fund, 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 under such agreement on the part of Eaton
Vance or Wright, Eaton Vance or Wright will not be liable to the Trust for any
loss incurred. The Trust's Investment Advisory Contract and Administration
Agreement were most recently approved by its Trustees, including the
"non-interested Trustees," at a meeting held on January 25, 1995 and by the
shareholders of each of its Funds at a meeting held on December 9, 1987.
CUSTODIAN
Investors Bank & Trust Company ("IBT"), 24 Federal Street, Boston, Massachusetts
(a 77.3% owned subsidiary of EVC) acts as custodian for the Funds. IBT has the
custody of all cash and securities of the Funds, maintains the Funds' 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' investments, receives and disburses all funds
and performs various other ministerial duties upon receipt of proper
instructions from the Funds.
<PAGE>
IBT charges custody fees which are competitive within the industry. A
portion of the custody fee for each fund served by IBT is based upon a schedule
of percentages applied to the aggregate assets of those funds managed by Eaton
Vance for which IBT serves as custodian, the fees so determined being then
allocated among such funds relative to their size. These fees are then reduced
by a credit for cash balances of the particular fund at IBT equal to 75% of the
91-day, U.S. Treasury Bill auction rate applied to the particular fund's average
daily collected balances for the week. In addition, each fund pays a fee based
on the number of portfolio transactions and a fee for bookkeeping and valuation
services. During the fiscal year ended December 31, 1994, the Funds paid IBT the
following fees:
- -------------------------------------------------------------------------------
Wright Government Obligations Fund................ $32,620
Wright Near Term Bond Fund........................ 71,746
Wright Total Return Bond Fund..................... 56,469
Wright Insured Tax Free Bond Fund................. 37,901
Wright Current Income Fund........................ 62,477
- -------------------------------------------------------------------------------
EVC and its affiliates and its officers and employees from time to time
have transactions with various banks, including the Funds' custodian, IBT. Those
transactions with IBT which have occurred to date have included loans to certain
of Eaton Vance's officers and employees. It is Eaton Vance's opinion that the
terms and conditions of such transactions were not and will not be influenced by
existing or potential custodian or other relationships between the Funds and
IBT.
INDEPENDENT CERTIFIED
PUBLIC ACCOUNTANTS
Deloitte & Touche LLP, 125 Summer Street, Boston, Massachusetts are the 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 Fund, 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,
<PAGE>
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
Funds 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 Fund'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 a Fund's 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.
Under the 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
Trust's Prospectus or this Statement of Additional Information has been
supplemented or amended to disclose the conditions under which Wright proposes
to do so.
The 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 Fund 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 year ended December 31, 1994, each Fund's purchases and sales of
portfolio investments were with the issuers or with major dealers acting as
principal. 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. The Funds paid no brokerage commissions during the
years ended December 31, 1992, 1993 and 1994.
FUND SHARES AND OTHER SECURITIES
The shares of beneficial interest of the Trust, without par value, may be
issued in two or more series, or Funds. The Trust currently has six Funds.
Shares of each Fund may be issued in an unlimited
<PAGE>
number by the Trustees of the Trust. Each share of a Fund represents an equal
proportionate beneficial interest in that Fund and, when issued and outstanding,
the shares are fully paid and non-assessable by the Trust.
Shareholders are entitled to one vote for each full share held. Fractional
shares may be voted in proportion to the amount of a Fund's net asset value
which they represent. Voting rights are not cumulative, which means that the
holders of more than 50% of the shares voting for the election of Trustees can
elect 100% of the Trustees and, in such event, the holders of the remaining less
than 50% of the shares voting on the matter will not be able to elect any
Trustees. Shares have no preemptive or conversion rights and are freely
transferable. Upon liquidation of the Trust or a Fund, shareholders are entitled
to share pro rata in the net assets of the Trust or Fund available for
distribution to shareholders, and in any general assets of the Trust not
previously allocated to a particular Fund by the Trustees.
PURCHASE, EXCHANGE,
REDEMPTION AND PRICING OF SHARES
For information regarding the purchase of shares, see "Who May Purchase
Fund Shares And What Is A Participating Trust Department" and "How To Buy
Shares" in the Funds' current Prospectus.
For information about exchanges between Funds, see "How To Exchange Shares"
in the Funds' current Prospectus.
For a description of how the Funds value their 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.
For information about the redemption of shares, see "How To Redeem Or Sell
Shares" in the Funds' current Prospectus.
PRINCIPAL UNDERWRITER
The Trust has adopted a Distribution Plan as defined in Rule 12b-1 under
the 1940 Act (the "Plan") on behalf of its Funds. The Trust's Plan specifically
allows that expenses covered by the Plan may include 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
shares. The expenses of such activities shall not exceed two-tenths of one
percent (2/10 of 1%) per annum of each Fund's average daily net assets. Payments
under the Plan are reflected as an expense in each Fund's financial statements.
Such expenses do not include interest or other financing charges.
The Trust has entered into a distribution contract on behalf of its Funds
with its principal underwriter, Wright Investors' Service Distributors, Inc.
("WISDI"), a wholly-owned subsidiary of Wright, providing for WISDI to act as a
separate distributor of each Fund's shares.
It is intended that each Fund will pay 2/10 of 1% of its average daily net
assets to WISDI for distribution
<PAGE>
activities on behalf of the Fund in connection with the sale of its shares.
WISDI shall provide on a quarterly basis documentation concerning the expenses
of such activities. Documented expenses of a Fund shall 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, and advertising of any type intended to
enhance the sale of shares of the Fund. Subject to the 2/10 of 1% per annum
limitation imposed by the Trust's Plan, a Fund may pay separately for expenses
of activities primarily intended to result in the sale of the Fund's 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
and a Trustee of the Trust and President and a Director of Wright, is Vice
President, Treasurer and a Director of WISDI. A.M. Moody, III, Vice President
and a Trustee of the Trust and Senior Vice President of Wright, is President and
a Director of WISDI.
It is the opinion of the Trustees and officers of the Trust that the
following are not expenses primarily intended to result in the sale of 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 shares issued by a
Fund, they shall be considered to be expenses contemplated by and included in
the applicable Plan but not subject to the 2/10 of 1% per annum limitation
described above.
Under the Trust's Plan, the President or Vice President of the Trust shall
provide to the Trustees for their review, and the Trustees shall 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, 1994, it is estimated that WISDI spent approximately the following
amounts on behalf of The Wright Managed Investment Funds, including the Funds in
the Income Trust:
<TABLE>
<CAPTION>
Wright Investors Service Distributors, Inc.
Financial Summaries for the Year 1994
Printing & Mailing Travel and Commissions and Administration
FUNDS Promotional Prospectuses Entertainment Service Fees and Other TOTAL
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Wright Government Obligations Fund $4,140 $1,235 $1,018 -- $1,093 $7,486
Wright Near Term Bond Fund $323,267 $96,454 $79,501 -- $85,347 $584,569
Wright Total Return Bond Fund $212,701 $63,464 $52,310 -- $56,156 $384,631
Wright Insured Tax Free Bond Fund -- -- -- -- -- --
Wright Current Income Fund $110,765 $33,049 $27,241 -- $29,244 $200,298
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Distribution Expenses
Distribution Distribution Paid As a % of
Expenses Expenses Fund's Average
Allowable Paid by Fund Net Asset Value
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Wright Government Obligations Fund (WGOF) $ 42,491 $ 7,486(1) 0.04%
Wright Near Term Bond Fund (WNTB) $ 584,569 $ 584,569 0.20%
Wright Total Return Bond Fund (WTRB) $ 384,631 $ 384,631 0.20%
Wright Insured Tax Free Bond Fund (WTFB) $ 28,863 0(2) 0.00%
Wright Current Income Fund (WCIF) $ 200,298 $ 200,298 0.20%
- ------------------------------------------------------------------------------------------------------------------------------
(1) WISDI reduced its fee to WGOF by $35,005.
(2) WISDI reduced its fee to WTRB by $28,863.
</TABLE>
The table above shows the distribution expenses allowable to WISDI and paid
by each Fund for the year ended December 31, 1994.
Under its terms, the 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 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 Plan. The Plan may not be amended to increase materially the amount to
be spent for the services described therein as to any Fund without approval of a
majority of the outstanding voting securities of that Fund and all material
amendments of the Plan must also be approved by the Trustees of the Trust in the
manner described above. The Trust's Plan may be terminated at any time as to any
Fund 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 that Fund. So long as the
Trust's Plan is in effect, the selection and nomination of Trustees who are not
interested persons of the Trust shall be committed to the discretion of the
Trustees who are not such interested persons. The Trustees of the Trust have
determined that in their judgment there is a reasonable likelihood that the Plan
will benefit the Trust and its shareholders.
The continuation of the Trust's Plan was most recently approved by the
Trustees of the Trust on January 25, 1995 and by the shareholders of each Fund
on December 9, 1987.
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. 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.
<PAGE>
The table below shows the average annual total return of each Fund for the
one, three, five and ten-year periods ended December 31, 1994 and the period
from inception to December 31, 1994.
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, 1994, the yield of each Fund was
as follows:
30-Day Period
Ended
December 31, 1994*
- -----------------------------------------------------------------
Wright Government Obligations Fund...... 7.16%
Wright Near Term Bond Fund.............. 6.94%
Wright Total Return Bond Fund........... 7.43%
Wright Insured Tax Free Bond Fund....... 4.87%
Wright Current Income Fund.............. 7.47%
- -----------------------------------------------------------------
* according to the following formula:
6
Yield = 2 [ ( a-b + 1) - 1 ]
---
cd
<TABLE>
<CAPTION>
Period Ended 12/31/94
---------------------------------------- Inception
One Three Five Ten To Inception
Year Years Years Years 12/31/94 Date
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Wright Government Obligations Fund (1) -8.7% 4.3% 7.2% 10.1% 10.2% 7/25/83
Wright Near Term Bond Fund (2) -3.1% 3.6% 6.3% 7.9% 8.3% 7/25/83
Wright Total Return Bond Fund (3) -6.6% 3.6% 6.2% 9.3% 9.6% 7/25/83
Wright Insured Tax Free Bond Fund (4) -4.1% 4.4% 5.9% -- 6.7% 4/10/85
Wright Current Income Fund (5) -3.3% 3.2% 6.9% -- 7.9% 4/15/87
- -------------------------------------------------------------------------------------------------------------------------------
<FN>
(1) If a portion of the WGOF Fund's expenses had not been subsidized for the
years ended December 31, 1993,1992, 1987,1985 and 1984, the Fund would have
had lower returns.
(2) If a portion of the WNTB Fund's expenses had not been subsidized during the
year ended December 31, 1987, the Fund would have had lower returns.
(3) If a portion of the WTRB Fund's expenses had not been subsidized during the
five years ended December 31,1989, the Fund would have had lower returns.
(4) If a portion of the WTFB Fund's expenses had not been subsidized during the
ten years ended December 31, 1994, the Fund would have had lower returns.
(5) If a portion of the WCIF Fund's expenses had not been subsidized during the
five years ended December 31,1991, the Fund would have had lower returns.
</FN>
</TABLE>
<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 1992 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.
<PAGE>
FINANCIAL STATEMENTS
Registrant incorporates by reference the audited
financial information for the Fund contained in the Fund's
shareholder report for the fiscal year ended December 31, 1994 as
previously filed electronically with the Securities and Exchange
Commission (Accession Number 0000715165-95-000021).
<PAGE>
APPENDIX
- ---------------------------
DESCRIPTION OF INVESTMENTS
U.S. GOVERNMENT, AGENCY AND INSTRUMENTALITY OBLIGATIONS -- U.S. Government
obligations 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 debt securities of the U.S.
Treasury or a Federal agency, Federal instrumentality or Federally created
corporation. 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.
MUNICIPAL SECURITIES -- Municipal securities are issued by or on behalf of
states, territories and possessions of the United States and their political
subdivisions, agencies and instrumentalities, and the District of Columbia, to
obtain funds for various public purposes. The interest on these obligations is
exempt from regular Federal income tax in the hands of most investors. The two
principal classifications of municipal securities are "notes" and "bonds".
Municipal notes are generally used to provide for short-term
<PAGE>
capital needs and generally have maturities of one year or less. Municipal
notes include:
Tax Anticipation Notes
Revenue Anticipation Notes
Bond Anticipation Notes
Construction Loan Notes
TAX ANTICIPATION NOTES (TANS) are sold to finance working capital needs of
municipalities. They are generally repayable from specific tax revenues expected
to be received at a future date. TANs are usually general obligations of the
issuer. A weakness in an issuer's capacity to raise taxes due to, among other
things, a decline in its tax base or a rise in delinquencies, could adversely
affect the issuer's ability to meet its obligations on outstanding TANs.
REVENUE ANTICIPATION NOTES (RANS) are issued in expectation of receipt of
future revenues from a designated source, such as Federal revenues available
under the Federal Revenue Sharing Program that will be used to repay the notes.
Like TANs, they also constitute general obligations of the issuer. A decline in
the receipt of projected revenues could adversely affect an issuer's ability to
meet its obligations on outstanding RANs. In addition, the possibility that the
revenues would, when received, be used to meet other obligations could affect
the ability of the issuer to pay the principal and interest on RANs.
BOND ANTICIPATION NOTES (BANS) are usually general obligations of state and
local government issuers which are sold to provide interim financing for
projects that will eventually be funded through the sale of long-term debt
obligations or bonds. The ability of an issuer to meet its obligations on its
BANs is dependent on the issuer's access to the long-term municipal bond market
and the likelihood that the proceeds of such bond sales will be used to pay the
principal and interest of the BANs.
CONSTRUCTION LOAN NOTES (CLNS) are sold to provide construction financing.
After the projects are successfully completed and accepted, many projects
receive permanent financing through the Federal Housing Administration under
FNMA or GNMA.
TAX-EXEMPT COMMERCIAL PAPER (MUNICIPAL PAPER) represents very short-term
unsecured (except possibly by a bank line of credit), negotiable, promissory
notes, issued by states, municipalities, and their agencies. Maturities of
municipal paper generally will be shorter than the maturities of BANs, RANs, or
TANs.
While the above represents the major portion of the short-term tax-exempt
note market, there are a number of other types of notes issued for different
purposes and secured differently than those described above. WTFB may invest in
such other types of notes to the extent permitted under the investment objective
and policies and investment restrictions for WTFB.
Longer term capital needs are usually met by issuing municipal bonds. The
two principal classifications of these are "general obligation" and "revenue"
bonds.
Issuers of general obligation bonds include states, counties, cities, towns
and regional districts. The proceeds of these obligations are used to fund a
wide range of public projects including the construction or improvement of
schools, highways and roads, water and sewer systems and a variety of other
public purposes. The basic security of general obligation bonds is the issuer's
pledge of its faith, credit, and taxing power for the payment of principal and
interest. The taxes that can be levied for the payment of debt service may be
limited or unlimited as to rate or amount or special assessments.
The principal security for a revenue bond is generally the net revenues
derived from a particular facility
<PAGE>
or group of facilities or, in some cases, from the proceeds of a special
excise or other specific revenue source. Revenue bonds have been issued to fund
a wide variety of capital projects including: electric, gas, water, sewer and
solid waste disposal systems; highways, bridges and tunnels; port, airport and
parking facilities; transportation systems; housing facilities; colleges and
universities and hospitals. Although the principal security behind these bonds
varies widely, many provide additional security in the form of a debt service
reserve fund whose monies may be used to make principal and interest payments on
the issuer's obligations. Housing finance authorities have a wide range of
security including partially or fully insured, rent subsidized and/or
collateralized mortgages, and/or the net revenues from housing or other public
projects. In addition to a debt service reserve fund, some authorities provide
further security in the form of a state's ability (without legal obligation) to
make up deficiencies in the debt service reserve fund. Lease rental revenue
bonds issued by a state or local authority for capital projects are normally
secured by annual lease rental payments from the state or locality to the
authority sufficient to cover debt service on the authority's obligations.
Industrial development and pollution control bonds, although nominally
issued by municipal authorities, are in most cases revenue bonds and are
generally not secured by the taxing power of the municipality but are usually
secured by the revenues of the authority derived from payments by the industrial
user or users. For this reason, the Trust would not consider such an issue as
suitable for investment for WTFB unless the industrial user or users meet the
credit and quality standards of Wright, the investment adviser (See Wright
Investors' Service Quality Ratings below).
There is, in addition, a variety of hybrid and special types of municipal
obligations from those described above. Some municipal bonds are additionally
secured by insurance, bank credit agreements, or escrow accounts.
The Trust expects that it will not invest more than 25% of the total assets
of WTFB in municipal obligations whose issuers are located in the same state or
more than 25% of the total assets in municipal bonds the security of which is
derived from any one of the following categories: hospitals and health
facilities; turnpikes and toll roads; ports and airports; or colleges and
universities. The Trust may, however, invest more than 25% of the total assets
of WTFB in municipal bonds of one or more issuers of bonds and notes of the
following types: public housing authorities; state and local housing finance
authorities; municipal utilities systems, provided that they are secured or
backed by the U.S. Treasury or other U.S. Government agencies and by any agency,
insurance company, bank or other financial organization acceptable to the
Trust's Trustees. There could be economic, business or political developments,
which might affect all municipal bonds of a similar type. However, the Trust
believes that the most important consideration affecting risk is the quality of
municipal bonds and/or the credit worthiness any guarantor thereof.
Obligations of issuers of municipal securities, including municipal
securities issued by them, are subject to the provisions of bankruptcy,
insolvency, and other laws affecting the rights and remedies of creditors, such
as the Federal Bankruptcy Reform Act of 1978, and laws, if any, which may be
enacted by Congress or state legislatures or by referenda extending the time for
payment of principal or interest, or both, or imposing other constraints upon
enforcement of such obligations or upon municipalities to levy taxes. There is
also the possibility that, as a result of litigation or other conditions, the
power or ability of any one or more issuers to pay, when due, principal of and
interest on its or their municipal securities may be materially affected.
<PAGE>
"WHEN ISSUED" SECURITIES -- U.S. Government obligations and Municipal
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 the intention 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 high-grade liquid debt 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.
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.
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.
<PAGE>
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 alpha-numeric 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 STANDARD & POOR'S AND MOODY'S
A Standard & Poor's 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.
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.
<PAGE>
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
Standard & Poor's. Moody's uses a nine-symbol system with Aaa being the highest
rating and C the lowest. Standard & Poor's 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 Standard & Poor's (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 and only the top two grades are acceptable for the tax-free
Income Funds. Note that both Standard & Poor's 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 Standard & Poor's 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 B
INFORMATION REQUIRED IN A STATEMENT OF ADDITIONAL INFORMATION
===============================================================================
STATEMENT OF ADDITIONAL INFORMATION
May 1, 1995
WRIGHT U.S. TREASURY MONEY MARKET FUND
24 Federal Street
Boston, Massachusetts 02110
- ------------------------------------------------------------------------------
TABLE OF CONTENTS Page
General Information And History...................... 2
Investment Objectives And Policies................... 3
Investment Restrictions.............................. 3
Officers And Trustees................................ 4
Control Persons And Principal Holders Of Shares...... 6
Investment Advisory And Administrative Services...... 6
Custodian............................................ 9
Independent Certified Public Accountants............. 10
Brokerage Allocation................................. 10
Fund Shares And Other Securities..................... 11
Purchase, Exchange, Redemption And Pricing Of Shares. 11
Principal Underwriter................................ 12
Calculation Of Yield Quotations...................... 13
Financial Statements................................. 14
Appendix............................................. 19
THIS STATEMENT OF ADDITIONAL INFORMATION IS NOT A PROSPECTUS AND IS AUTHORIZED
FOR DISTRIBUTION TO PROSPECTIVE INVESTORS ONLY IF PRECEDED OR ACCOMPANIED BY THE
CURRENT PROSPECTUS OF THE WRIGHT U.S. TREASURY MONEY MARKET FUND, A SERIES OF
THE WRIGHT MANAGED INCOME TRUST (THE "TRUST" OR THE "INCOME TRUST") DATED MAY 1,
1995; A COPY OF WHICH MAY BE OBTAINED WITHOUT CHARGE FROM WRIGHT INVESTORS'
SERVICE DISTRIBUTORS, INC., 1000 LAFAYETTE BOULEVARD, BRIDGEPORT, CONNECTICUT
06604 (TELEPHONE: 800-888-4471).
<PAGE>
GENERAL INFORMATION AND HISTORY
The Trust is a no-load, open-end, management investment company organized
as a Massachusetts business trust. The Trust was organized in 1983. Wright U.S.
Treasury Money Market Fund (the "Fund") is a series of the Trust, which also has
five other series. The Fund is a diversified fund.
As permitted by Massachusetts law, there will normally be no meetings of
shareholders for the purpose of electing Trustees of the Trust unless and until
such time as less than a majority of the Trustees of the Trust holding office
have been elected by its shareholders. In such an event the Trustees then in
office will call a shareholders' meeting for the election of Trustees. Subject
to the foregoing circumstances, the Trustees will continue to hold office and
may appoint successor or new Trustees except that, pursuant to provisions of the
Investment Company Act of 1940 (the "1940 Act"), which are set forth in the
By-Laws of the Trust, the shareholders of record of not less than two-thirds of
the outstanding shares of a Trust can remove one or more of its Trustees from
office either by declaration in writing filed with the Trust's custodian or by
votes cast in person or by proxy at a meeting called for the purpose.
The Trust's Declaration of Trust may be amended with the affirmative vote
of a majority of the outstanding shares of such Trust or, if the interests of a
particular Fund are affected, a majority of such Fund's outstanding shares. The
Trustees are authorized to make amendments to a Declaration of Trust that do not
have a material adverse effect on the interests of shareholders. The Trust may
be terminated (i) upon the sale of the Trust's assets to another diversified
open-end management investment company, if approved by the holders of two-thirds
of the outstanding shares of the Trust, except that if the Trustees recommend
such sale of assets, the approval by the vote of a majority of the outstanding
shares will be sufficient, or (ii) upon liquidation and distribution of the
assets of the Trust, if approved by a majority of its Trustees or by the vote of
a majority of the Trust's outstanding shares. If not so terminated, the Trust
may continue indefinitely.
The Trust's Declaration of Trust further provides that the Trust's Trustees
will not be liable for errors of judgment or mistakes of fact or law; however,
nothing in the 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 Trust is an organization of the type commonly known as a "Massachusetts
business trust." Under Massachusetts law, shareholders of such a trust may,
under certain circumstances, be held personally liable as partners for the
obligations of the trust. The Trust's Declaration of Trust contains an express
disclaimer of shareholder liability in connection with the Trust's property or
the acts, obligations or affairs of the Trust. The Declaration of Trust also
provides for indemnification out of the Trust's 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 the Trust itself would be unable to meet its
obligations. The Trust has been advised by its counsel that the risk of any
shareholder incurring any liability for the obligations of the Trust is
extremely remote.
The Trust has retained Wright Investors' Service of Bridgeport, Connecticut
("Wright") as investment adviser to carry out the management, investment and
reinvestment of its assets. The Trust has retained
<PAGE>
Eaton Vance Management ("Eaton Vance"), 24 Federal Street, Boston,
Massachusetts 02110, as administrator of its business affairs.
INVESTMENT OBJECTIVES AND POLICIES
The investment objective of the Fund 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. Government
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 assets
may 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.
INVESTMENT RESTRICTIONS
The following investment restrictions have been adopted by the Income Trust
on behalf of the Fund and may be changed only by the vote of a majority of the
Fund'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 if
the holders of more than 50% of the shares are present or represented at the
meeting or (b) more than 50% of the shares of the Fund. Accordingly, the Fund
may not:
(1) Borrow money in excess of 1/3 of the current market value of the net
assets of the Fund (excluding the amount borrowed) and then only if
such borrowing, including reverse repurchase agreements, is incurred as
a temporary measure for extraordinary or emergency purposes or to
facilitate the orderly sale of portfolio securities to accommodate
redemption requests; or issue any securities of the Fund other than its
shares of beneficial interest except as appropriate to evidence
indebtedness which the Fund is permitted to incur. (The Income Trust
anticipates paying interest on borrowed money at rates comparable to
the Fund's yield and the Income Trust has no intention of attempting to
increase the Fund's net income by means of borrowing);
(2) Pledge, mortgage or hypothecate the assets of the Fund to an extent
greater than 1/3 of the total assets of the Fund taken at market;
(3) Invest more than 5% of the Fund's total assets taken at current market
value in the securities of any one issuer (other than securities issued
or guaranteed by the U.S. Government or its agencies or
instrumentalities) or purchase more than 10% of the voting securities
of any one issuer;
<PAGE>
(4) Purchase or retain securities of any issuer if 5% of the issuer's
securities are owned by those officers and Trustees of the Income Trust
or its manager, investment adviser or administrator who own
individually more than 1/2 of 1% of the issuer's securities;
(5) Purchase securities on margin, make short sales except sales against
the box, write or purchase or sell any put options, or purchase
warrants;
(6) Buy or sell real estate unless acquired as a result of ownership of
securities;
(7) Purchase any securities which would cause 25% or more of the market
value of the Fund's total assets at the time of such purchase to be
invested in the securities of issuers having their principal business
activities in the same industry, provided that there is no limitation
in respect to investments in securities issued or guaranteed by the
U.S. Government or its agencies or instrumentalities and utility
companies, gas, electric, water and telephone companies are considered
as separate industries;
(8) Underwrite securities issued by other persons except insofar as the
Income Trust may technically be deemed an underwriter under the
Securities Act of 1933 in selling a portfolio security;
(9) Make loans, except (i) through the loan of a portfolio security, (ii)
by entering into repurchase agreements, and (iii) to the extent that
the purchase of debt instruments in accordance with the Fund's
investment objective and policies may be deemed to be loans; or
(10) Purchase from or sell to any of the Income Trust's Trustees and
officers, its manager, administrator, or investment adviser, its
principal underwriter, if any, or the officers and directors of said
manager, administrator, investment adviser or principal underwriter,
portfolio securities of the Fund.
In addition, while not a fundamental policy, the Fund will not enter into
repurchase agreements maturing in more than 7 days or invest in illiquid
securities if, as a result, more than 10% of the Fund's net assets would be
invested in such repurchase agreements and illiquid securities.
OFFICERS AND TRUSTEES
The officers and Trustees of the Trust are listed below. 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" of the Trust, Wright, Eaton Vance, Eaton Vance's wholly owned
subsidiary, Boston Management and Research ("BMR") or Eaton Vance's parent
company, Eaton Vance Corp. (`EVC'), or by Eaton Vance's and BMR's Trustee, Eaton
Vance, Inc. ("EV") as defined in the 1940 Act by virtue of their affiliation
with either the Trust, Wright, Eaton Vance, BMR, EVC or EV, are indicated by an
asterisk (*).
PETER M. DONOVAN (52), PRESIDENT AND TRUSTEE*
President and Director of Wright Investors' Service; Vice President, Treasurer
and a Director of Wright Investors' Service Distributors, Inc.
Address: 1000 Lafayette Boulevard, Bridgeport, CT 06604
H. DAY BRIGHAM, JR. (68), VICE PRESIDENT, SECRETARY AND TRUSTEE*
Vice President of Eaton Vance, BMR, EV and EVC and Director, EV and EVC;
Director, Trustee and officer of various investment companies managed by Eaton
Vance or BMR; Director, Investors Bank & Trust Company
Address: 24 Federal Street, Boston, MA 02110
<PAGE>
WINTHROP S. EMMET (84), TRUSTEE
Attorney at Law, West Stockbridge, MA; Trust Officer, First National City
Bank, New York, NY (1963-1971)
Address: Box 327, West Center Road, West Stockbridge, MA 01266
LELAND MILES (71), TRUSTEE
President Emeritus, University of Bridgeport (1987- present); President,
University of Bridgeport (1974-1987); Director, United Illuminating Company
Address: Tide Mill Landing, 2425 Post Road, Suite 102, Southport, CT 06490
A. M. MOODY III (58), VICE PRESIDENT & TRUSTEE*
Senior Vice President, Wright Investors' Service; President, Wright
Investors' Service Distributors, Inc.
Address: 1000 Lafayette Boulevard, Bridgeport, CT 06604
LLOYD F. PIERCE (76), 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: 125 Gull Circle North, Daytona Beach, FL 32119
GEORGE R. PREFER (60), TRUSTEE
Retired President and Chief Executive Officer, Muller Data Corp., New York,
NY (1983- 1986) (1989-Present); President and Chief Executive Officer,
InvestData Corporation, A Mellon Financial Services Company (1986-1989)
Address: 7738 Silver Bell Drive, Sarasota, FL 34241
RAYMOND VAN HOUTTE (70), 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., Evaported
Metal Products and Ithaco, Inc.
Address: One Strawberry Lane, Ithaca, NY 14850
JUDITH R. CORCHARD (56), VICE PRESIDENT
Executive Vice President, Investment Management: Senior Investment Officer;
Vice Chairman of the Investment Committee and Director Wright Investors'
Service.
Address: 1000 Lafayette Boulevard, Bridgeport, CT 06604
JAMES L. O'CONNOR (50), 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 (59), ASSISTANT SECRETARY & 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. (43), 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
RICHARD E. HOUGHTON (64), ASSISTANT SECRETARY
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
JOHN P. RYNNE (52), ASSISTANT SECRETARY
Vice President and Comptroller of Eaton Vance, BMR and EV and Comptroller of EVC
Address: 24 Federal Street, Boston, MA 02110
All of the Trustees and officers hold identical positions with The Wright
Managed Equity Trust, The Wright Managed Blue Chip Series Trust (except
Mr.Miles) and The Wright EquiFund Equity Trust. The fees and expenses of those
Trustees of the Trust (Messrs. Emmet, Miles, Pierce, Prefer and Van Houtte)
<PAGE>
who are not affiliated persons of the Trust are paid by the Fund and
other series of the Trust. They also received additional payments from other
investment companies for which Wright provides investment advisory services. The
Trustees who are interested persons of the Trust receive no compensation from
the Trust. For Trustee compensation for the fiscal year ended December 31, 1994,
see the table below.
Messrs. Emmet, Miles, Pierce, Prefer and Van Houtte are members of the
Special Nominating Committee of the Trustees of the Trust. The Special
Nominating Committee's function is selecting and nominating individuals to fill
vacancies, as and when they occur, in the ranks of those Trustees who are not
"interested persons" of the Trust, Eaton Vance or Wright. The Trust does not
have a designated audit committee since the full Board performs the functions of
such committee.
CONTROL PERSONS
AND PRINCIPAL HOLDERS OF SHARES
As of March 31, 1995, the Trustees and officers of the Trusts, as a group,
owned in the aggregate less than 1% of the outstanding shares of the Fund. The
Fund's shares have been held primarily by Participating Trust Departments either
for their own account or for the accounts of their clients. From time to time
several of these Participating Trust Departments are the record owners of 5% or
more of the outstanding shares of the Fund. To date, the Fund's experience has
been that such shareholders do not continuously hold in excess of 5% or more of
the Fund's outstanding shares for extended periods of time. Should a shareholder
continuously hold 5% or more of the Fund's outstanding shares for an extended
period of time (a period in excess of a year), this would be disclosed by an
amendment to this Statement of Additional Information showing such shareholder's
name, address and percentage of ownership. Upon request, the Trust will provide
shareholders with a list of all shareholders holding 5% or more of the Fund's
outstanding shares as of a current date.
As of March 31, 1995, the number of Participating Trust Departments which
were the record owners of more than 5% of the outstanding shares of the Fund was
five.
INVESTMENT ADVISORY
AND ADMINISTRATIVE SERVICES
The Trust has engaged Wright to act as the Fund's investment adviser
pursuant to an Investment Advisory Contract dated April 1, 1991 (the "Investment
Advisory Contract"). Wright, located at 1000 Lafayette Boulevard, Bridgeport,
Connecticut, was founded in 1960 and currently provides investment services to
clients throughout the United States and abroad. John
<TABLE>
<CAPTION>
COMPENSATION TABLE - FISCAL YEAR ENDED DECEMBER 31,
1994 The Wright Managed Income Trust -- Registered
Investment Companies (4)
Aggregate Compensation from Pension Benefits Estimated Total Compensation
Trustees The Wright Managed Income Trust Accrued Annual Benefits Paid(1)
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Winthrop S. Emmet $1,100 None None $5,000
Leland Miles $1,100 None None $5,000
Lloyd F. Pierce $1,100 None None $5,000
George R. Prefer $1,100 None None $5,000
Raymond Van Houtte $1,100 None None $5,000
- -----------------------------------------------------------------------------------------------------------------------------
<FN>
(1) Total compensation paid is from The Wright Managed Income Trust (6 funds)
and the other boards in the Wright Fund complex (17 Funds) for a total of 23
Funds.
</FN>
</TABLE>
<PAGE>
Winthrop Wright may be considered a controlling person of Wright by virtue of
his position as Chairman of the Board of Directors of Wright, and by reason of
his ownership of more than a majority of the outstanding shares of Wright.
The Investment Advisory Contract provides that Wright will carry out the
investment and reinvestment of the assets of the Fund, will furnish continuously
an investment program with respect to the Fund, will determine which securities
should be purchased, sold or exchanged, and will implement such determinations.
Wright will furnish to the Fund 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 of the Trust. In return for these services, the
Fund is obligated to pay a monthly advisory fee calculated at the rates set
forth in the table below.
Wright does not intend to exclude from the calculation of the investment
advisory fees it charges Participating Trust Departments the assets of
Participating Trust Departments which are invested in shares of the Fund.
Accordingly, a Participating Trust Department may pay an advisory fee to Wright
as a client of Wright in accordance with Wright's customary investment advisory
fee schedule charged to Participating Trust Departments and at the same time, as
a shareholder in the Fund, bear its share of the advisory fee paid by the Fund
to Wright as described below.
The Trust has engaged Eaton Vance to act as the administrator for the Fund
pursuant to Administration Agreement dated April 1, 1991. Eaton Vance or its
affiliates act as investment adviser to investment companies and various
individual and institutional clients with assets under management of
approximately $15 billion. Eaton Vance is a wholly-owned subsidiary of EVC, a
publicly held holding company.
Under the Administration Agreement, Eaton Vance is responsible for managing
the business affairs of the Fund, subject to the supervision of Trustees of the
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 Trust's custodian and transfer agent, providing assistance
in connection with the Trustees' and shareholders' meetings and other
administrative services necessary to conduct the Fund's business. Eaton Vance
will not provide any investment management or advisory services to the Fund. For
its services under the Administration Agreement, Eaton Vance receives monthly
administration fees at the annual rates set forth in the table on the following
page.
<TABLE>
<CAPTION>
Annual % Advisory Fee Rates
- --------------------------------------- Fee Earned Fee Earned Fee Earned
Under $100 Million Over Aggregate for Fiscal Year for Fiscal Year for Fiscal Year
$100 to $500 Net Asset Value Ended Ended Ended
Million $500 Million Million 12/31/94 12/31/92[1] 12/31/93[2] 12/31/94[3]
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
0.35% 0.32% 0.30% $68,876,842 $81,713 $42,817 $157,447
- ----------------------------------------------------------------------------------------------------------------------------
<FN>
[1] To enhance the net income of the Fund, Wright reduced its advisory fee by $62,240.
[2] To enhance the net income of the Fund, Wright reduced its advisory fee by
$42,817 and made an allocation to Wright of $21,436 of other expenses
related to the operation of the Fund.
[3] To enhance the net income of the Fund, Wright reduced its advisory fee by $114,912.
</FN>
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
<CAPTION>
Annual %
Administration Fee Rates Fee Paid Fee Paid Fee Paid
- ------------------------------------------------- for Fiscal Year for Fiscal Year for Fiscal Year
Under $100 Million Over Ended Ended Ended
$100 Million to $500 Million $500 Million 12/31/92 12/31/93 12/31/94
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
0.07% 0.03% 0.02% $16,401 $8,585 $31,490
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
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 Massachusetts
business trusts, and EV is the trustee of Eaton Vance and BMR. The Directors of
EV are Landon T. Clay, H. Day Brigham, Jr., 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 and Ralph Z. Sorenson. Mr. Clay is chairman, and Mr.
Gardner is president and chief executive officer 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 which expires on December 31, 1996, the Voting Trustees of which
are Messrs. Brigham, Clay, Gardner, Hawkes, and Rowland. 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 and
Directors of EVC and EV. As of April 1, 1995, Messrs. Clay, Gardner and Hawkes
each owned 24% of such voting trust receipts and Messrs. Rowland and Brigham
owned 15% and 13%, respectively, of such voting trust receipts. Messrs. Brigham
and Rynne are officers or Trustees of the Trust and are members of the EVC,
Eaton Vance, BMR and EV organizations. Messrs. Austin, Houghton and O'Connor and
Ms. Sanders, who are officers of the Trust, are also members of the Eaton Vance
and EV organizations. Eaton Vance will receive the fees paid under the
Administration Agreements.
Eaton Vance owns all of the stock of Energex Corporation which is engaged
in oil and gas operations. EVC owns all of the stock of Marblehead Energy Corp.
(which engages in oil and gas operations) and 77.3% of the stock of Investors
Bank & Trust Company, which provides custodial, trustee and other fiduciary
services to investors, including individuals, employee benefit plans,
corporations, investment companies, savings banks and other institutions. In
addition, Eaton Vance owns all the stock of Northeast Properties, Inc., which is
engaged in real estate investment, consulting and management. EVC owns all of
the stock of Fulcrum Management, Inc. and MinVen, Inc., which are engaged in the
development of precious metal properties. EVC, EV, BMR and Eaton Vance may also
enter into other businesses.
The Trust will be responsible for all of its expenses not expressly stated
to be payable by Wright under its Investment Advisory Contract or by Eaton Vance
under its Administration Agreement, including, without limitation, the fees and
expenses of its custodian and transfer agent, including those incurred for
determining the Fund's net asset value and keeping the Fund's books; the cost of
share certificates; membership dues in investment company organizations;
brokerage commissions and fees; fees and expenses of registering its shares;
expenses of reports to shareholders, proxy statements, and other expenses of
shareholders' meetings; insurance premiums; printing and mailing expenses;
interest, taxes and corporate fees; legal and accounting expenses; expenses of
Trustees not
<PAGE>
affiliated with Eaton Vance or Wright; and investment
advisory and administration fees. The Trust will also bear expenses incurred in
connection with litigation in which the Trust is a party and the legal
obligation the Trust may have to indemnify its officers and Trustees with
respect thereto.
The Trust's Investment Advisory Contract and Administration Agreement will
remain in effect until February 28, 1996. The Trust's Investment Advisory
Contract may be continued with respect to the Fund from year to year thereafter
so long as such continuance after February 28, 1996 is approved at least
annually (i) by the vote of a majority of the Trustees who are not "interested
persons" of the 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
shares of the Fund. The Trust's Administration Agreement may be continued from
year to year so long as such continuance is approved annually by the vote of a
majority of the Trustees. Each agreement may be terminated as to the Fund at any
time without penalty on sixty (60) days' written notice by the Board of Trustees
or Trustees or Directors of either party, or by vote of the majority of the
outstanding shares of the Fund, 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 under such agreement on the part of Eaton
Vance or Wright, Eaton Vance or Wright will not be liable to the Trust for any
loss incurred. The Trust's Investment Advisory Contract and Administration
Agreement were most recently approved by its Trustees, including the
"non-interested Trustees" at a meeting held on January 25, 1995 and the
Investment Advisory Contract was approved by the shareholders on July 29, 1992.
CUSTODIAN
Investors Bank & Trust Company ("IBT"), 24 Federal Street, Boston,
Massachusetts (a 77.3% owned subsidiary of EVC) acts as custodian for the Fund.
IBT has the custody of all cash and securities of the Fund, maintains the Fund's
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 Fund's investments, receives
and disburses all funds and performs various other ministerial duties upon
receipt of proper instructions from the Fund. IBT charges custody fees which are
competitive within the industry. A portion of the custody fee for each fund
served by IBT is based upon a schedule of percentages applied to the aggregate
assets of those funds managed by Eaton Vance for which IBT serves as custodian,
the fees so determined being then allocated among such funds relative to their
size. These fees are then reduced by a credit for cash balances of the
particular fund at IBT equal to 75% of the 91-day, U.S. Treasury Bill auction
rate applied to the particular fund's average daily collected balances for the
week. In addition, each fund pays a fee based on the number of portfolio
transactions and a fee for bookkeeping and valuation services. During the fiscal
year ended December 31, 1994, the Fund paid IBT $27,958 under these
arrangements.
EVC and its affiliates and its officers and employees from time to time
have transactions with various banks, including the Fund's custodian, IBT. Those
transactions with IBT which have occurred to date have included loans to certain
of Eaton Vance's officers and employees. It is Eaton Vance's opinion that the
terms and conditions of such transactions were not and will not be influenced by
existing or potential custodian or other relationships between the Fund and IBT.
<PAGE>
INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
Deloitte & Touche LLP, 125 Summer Street, Boston, Massachusetts are the
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 the Fund, 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 Fund 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 Fund 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 its 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 Fund 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 staff.
Subject to the requirement that Wright shall use its best efforts to seek
to execute the Fund'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 the Fund's portfolio orders may be placed the fact that such firm has
sold or is selling shares of the Fund 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
<PAGE>
the basis of brokerage commissions received or expected by such firm from
any source.
It is expected that purchases and sales of the Fund's portfolio investments
will be with the issuers or with major dealers in money market instruments
acting as principal, and that the Fund 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, 1992,
1993 and 1994, the Fund paid no brokerage commissions.
FUND SHARES AND OTHER SECURITIES
The shares of beneficial interest of the Trust, without par value, may be
issued in two or more series, or Funds. In addition to the Fund, the Trust has
five other Funds that are offered under a separate prospectus. Shares of each
Fund may be issued in an unlimited number by the Trustees of the Trust. Each
share of a Fund represents an equal proportionate beneficial interest in that
Fund and, when issued and outstanding, the shares are fully paid and
non-assessable by the Trust.
Shareholders are entitled to one vote for each full share held. Fractional
shares may be voted in proportion to the amount of a Fund's net asset value
which they represent. Voting rights are not cumulative, which means that the
holders of more than 50% of the shares voting for the election of Trustees can
elect 100% of the Trustees and, in such event, the holders of the remaining less
than 50% of the shares voting on the matter will not be able to elect any
Trustees. Shares have no preemptive or conversion rights and are freely
transferable. Upon liquidation of the Trust or Fund, shareholders are entitled
to share pro rata in the net assets of the affected Trust available for
distribution to shareholders, and in any general assets of the Trust not
previously allocated to a particular Fund by the Trustees.
PURCHASE, EXCHANGE,
REDEMPTION AND PRICING OF SHARES
For information regarding the purchase of shares, see "How To Buy Shares"
in the Fund's current Prospectus.
For information about exchanges between Funds, see "How To Exchange Shares"
in the Fund's current Prospectus.
The Fund values its shares twice on each day the New York Stock Exchange
(the "Exchange") is open at noon 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 investment adviser will periodically review this method of
valuation and recommend changes to the Trustees of the Trust which may be
necessary to assure that the portfolio instruments are valued at their fair
value as determined by the Trustees in good faith. The Fund's use of the
amortized cost method to value the portfolio securities is conditioned on its
compliance with conditions contained in
<PAGE>
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
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 the Trustees determine 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 13 months. 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 the 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.
For information about the redemption of shares, see "How To Redeem Or Sell
Shares" in the Fund's current Prospectus.
PRINCIPAL UNDERWRITER
The Trust has entered into a Distribution Contract on behalf of the Fund
with its principal underwriter, Wright Investors' Service Distributors, Inc.
("WISDI"), a wholly-owned subsidiary of Wright, providing for WISDI to act as a
separate distributor of Fund shares. The Fund is not obligated to make any
distribution payments to WISDI under its Distribution Contract. Peter M.
Donovan, President and a Trustee of the Trust and President and a Director of
Wright, is Vice President, Treasurer and a Director of WISDI. A. M. Moody, III,
Vice President and a Trustee of the Trust and Senior Vice President of Wright is
President and a Director of WISDI.
<PAGE>
CALCULATION OF YIELD QUOTATIONS
From time to time, quotations of the 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 the Fund for the seven-day
period ended December 31, 1994 was 4.84%.
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 the Fund for the
seven-day period ended December 31, 1994 was 4.95%.
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.
The Fund's yield or total return may be compared to the Consumer Price
Index and various domestic securities indices. The 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 the Fund's performance made by independent
sources may be used in advertisements and in information furnished to present or
prospective shareholders. These include 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.
<PAGE>
FINANCIAL STATEMENTS
Registrant incorporates by reference the audited financial information for
the Fund contained in the Fund's shareholder report for the fiscal year ended
December 31, 1994 as previously filed electronically with the Securities and
Exchange Commission (Accession Number 0000715165-95-000014).
<PAGE>
APPENDIX
- ---------------------------
DESCRIPTION OF INVESTMENTS
REPURCHASE AGREEMENTS -- involve purchase of debt securities of the U.S.
Treasury or a Federal agency or Federal instrumentality. 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 the Fund to earn a return on cash which is only temporarily
available. The 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 the Fund
being able to resell the security.
In all cases when entering into repurchase agreements with other than
FDIC-insured depository institutions, the Fund 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.
"WHEN-ISSUED" SECURITIES -- U.S. Government obligations 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 the 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 the Fund are held in cash pending the
settlement of a purchase of securities, the Fund would earn no income; however,
the Fund intends to 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 the
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 the 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 the Fund
will maintain cash and liquid, high-grade debt 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 the Fund's when-issued commitments. Securities purchased on
a when-issued basis and the securities held by the 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
<PAGE>
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 the 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 assets than if cash
were solely set aside to pay for when-issued securities.
WRIGHT QUALITY RATINGS
Wright Quality Ratings Standards 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.
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, which are also applied to counterparties to repurchase agreements,
consist of the two central positions of the four position alpha-numeric
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 alpha-numeric 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.
PART C
OTHER INFORMATION
ITEM 24. FINANCIAL STATEMENTS AND EXHIBITS
(A) FINANCIAL STATEMENTS --
Included in Part A:
Financial Highlights for Wright U.S. Treasury Money Market Fund for
each of the three years ended December 31, 1994 and for the period
from the start of business, June 28, 1991 to December 31, 1991.
Financial Highlights for Wright Government Obligations Fund, Wright
Near Term Bond Fund and Wright Total Return Bond Fund for each of the
ten years ended December 31, 1994.
Financial Highlights for Wright Insured Tax-Free Bond Fund for each
of the nine years ended December 31, 1994 and for the period from the
commencement of operations, April 10, 1985 to December 31, 1985.
Financial Highlights for Wright Current Income Fund for each of the
seven years ended December 31, 1994 and for the period from the
commencement of operations, April 15, 1987 to December 31, 1987.
Included in Part B:
INCORPORATED BY REFERENCE TO THE ANNUAL REPORTS FOR THE FUNDS,
EACH DATED DECEMBER 31, 1994, FILED ELECTRONICALLY PURSUANT
TO SECTION 30(B)(2) OF THE
INVESTMENT COMPANY ACT OF 1940 (ACCESSION NOS. 0000715165-95-000014 AND
0000715165-95-000021).
For Wright U.S. Treasury Money Market Fund, Wright Government
Obligations Fund, Wright Near Term Bond Fund, Wright Total Return
Bond Fund, Wright Insured Tax-Free Bond Fund and Wright Current
Income Fund:
Portfolio of Investments, December 31, 1994 Statement of Assets and
Liabilities, December 31, 1994 Statement of Operations for the year
ended December 31, 1994 Statement of Changes in Net Assets for each of
the two years in the period ended December 31, 1994 Notes to Financial
Statements Independent Auditors' Report
(B) EXHIBITS:
(1) Declaration of Trust dated February 17, 1983*
(a) Establishment and Designation of Series of Shares of
Beneficial Interest, Without Par Value; dated February 17, 1983*
(b) Amendment of Declaration of Trust, dated May 4, 1983 * * (c)
Amendment and Restatement of Establishment and Designation of
Series of Shares of Beneficial Interest, Without Par
Value, dated May 4, 1983 * *
(d) Amendment and Restatement of Establishment and Designation of
Series of Shares of Beneficial Interest, Without Par Value,
dated June 10, 1983 * * *
(e) Declaration of Trust as amended and restated December 19, 1984
* * * * *
(f) Amendment and Restatement of Establishment and
Designation of Series of Shares of Beneficial Interest,
Without Par Value, dated December 19, 1984 * * * * *
(g) Amendment and Restatement of Establishment and Designation of
Series of Shares of Beneficial Interest, Without Par Value,
dated February 6, 1987 * * * * * *
(h) Amendment and Restatement of Establishment and Designation
of Series of Shares, Without Par Value, dated July 15,
1987. * * * * * * *
(i) Amendment to Declaration of Trust, dated
December 21, 1987. * * * * * * *
(j) Amendment and Restatement of Establishment and Designation
of Series of Shares of Beneficial Interest, Without Par
Value, dated January 24, 1991 filed as Exhibit (1)(j) to
Post-Effective Amendment No. 13 and incorporated herein by
reference.
<PAGE>
(k) Amendment to Declaration of Trust dated March 28, 1991 filed
as Exhibit (1)(k) to Post-Effective Amendmend No. 14
and incorporated herein by reference.
(l) Amendment and Restatement of Establishment and Designation
of Series of Shares of Beneficial Interest Without Par
Value, dated March 18, 1992 filed as Exhibit (1)(l) to
Post-Effective Amendment No. 16 and incorporated herein by
reference.
(2) By-laws (as amended August 2, 1984) * * *
(3) Not Applicable
(4) Not Applicable
(5) (a) (1) Investment Advisory Contract dated December 21, 1987
with the Winthrop Corporation, d/b/a Wright Investors'
Service. * * * * * * *
(a) (2) Investment Advisory Contract on behalf of Wright U.S.
Treasury Money Market Fund dated April 1, 1991 filed as
Exhibit (5)(a)(2) to Post-Effective Amendment No. 15 and
incorporated herein by reference.
(b) (1) Administration Agreement with Eaton Vance Management
re-executed as of November 1, 1990 filed as Exhibit
(5)(b)(1) to Post-Effective Amendment No. 14 and
incorporated herein by reference.
(b) (2) Administration Agreement for Wright U.S. Treasury
Money Market Fund dated April 1, 1991 filed as Exhibit
(5)(b)(2) to Post-Effective Amendment No. 14 and
incorporated herein by reference.
(6) Distribution Contract between the Fund and MFBT Corporation dated
December 19, 1984. * * * * *
(7) Not Applicable
(8) Custodian Agreement with Investors Bank & Trust Company dated
December 19, 1990 filed
as Exhibit (8) to Post-Effective Amendment No. 14 and incorporated
herein by reference.
(9) Not Applicable
(10) Opinion of Counsel filed herewith as Exhibit 10.
(11) Auditors' Consent filed herewith as Exhibit 11.
(12) Not Applicable
(13) (a) Agreement with The Winthrop Corporation, d/b/a Wright
Investors' Service, in consideration of providing initial
capital dated April 27, 1983.*
(b) Agreement with Eaton Vance Management, Inc. in consideration
of providing initial capital dated April 27, 1983. * *
(c) Agreement with The Winthrop Corporation, d/b/a Wright
Investors' Service, dated June 15, 1983. * * *
(d) Agreement with Eaton Vance Management, Inc., dated
June 15, 1983. * * *
(14) Not Applicable
(15) (a) Amended Distribution Plan pursuant to Rule 12b-1 under the
Investment Company Act of 1940, dated December 19, 1984.
* * * * *
(b) Agreement Relating to Implementation of the Distribution Plan,
dated December 19, 1984.* * * * *
(16) Schedule for Computation of Performance Quotations filed herewith
as Exhibit (16).
(17) Power of Attorney dated April 1, 1993 filed as Exhibit (17) to
Post-Effective Amendment No. 17 and incorporated herein
by reference.
* Filed with the Registration Statement on February 17, 1983.
* * Filed with Pre-Effective Amendment No. 1 to Registration Statement
on May 6, 1983.
* * * Filed with Pre-Effective Amendment No. 2 to the Registration
Statement of the Fund on June 28, 1983.
* * * * Filed with Post-Effective Amendment No. 2 on August 3, 1984 and
incorporated herewith by reference.
* * * * * Filed with Post-Effective Amendment No. 4 on April 18, 1985 and
incorporated herein by reference.
* * * * * * Filed with Post-Effective Amendment No. 7 on May 1, 1987 and
incorporated herein by reference.
* * * * * * * Filed with Post-Effective Amendment No. 10 on May 2, 1988 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
Title of Class Number of Record Holders as of March 31, 1995
- --------------------------------------------------------------------------------
Shares of Beneficial Wright Government Obligations Fund.................. 100
Interest Wright Near Term Bond Fund.......................... 543
Wright Total Return Bond Fund....................... 628
Wright Insured Tax Free Bond Fund................... 45
Wright Current Income Fund.......................... 262
Wright U.S. Treasury Money Market Fund.............. 484
ITEM 27. INDEMNIFICATION
No change from information set forth in Item 4 of Form N-1 filed as
Pre-effective Amendment No. 2 to the Registration Statement under the Securities
Act of 1933, and incorporated herein by reference.
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 Wright Investors' Service) acts as principal
underwriter for each of the investment companies named below.
The Wright Managed Equity Trust
The Wright Managed Income Trust
The Wright Managed Blue Chip Series Trust
The Wright EquiFund Equity Trust
<TABLE>
<CAPTION>
(b) (1) (2) (3)
Name and Principal Positions and Officers Positions and Offces
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, 24 Federal Street, Boston, MA 02110
and 89 South Street, Boston, MA 02111, and its transfer agent, The Shareholder
Services Group, Inc., One Exchange Place, Boston, MA 02104, 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, 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.
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 21st day of April, 1995.
THE WRIGHT MANAGED INCOME 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 and on the dates indicated.
SIGNATURE TITLE DATE
- --------------------------------------------------------------------------------
Peter M. Donovan* President, Principal April 21, 1995
- -------------------
Peter M. Donovan Executive Officer & Trustee
James L. O'Connor* Treasurer, Principal April 21, 1995
- -------------------
James L. O'Connor Financial and Accounting Officer
/s/ H. Day Brigham, Jr. Trustee April 21, 1995
- -------------------
H. Day Brigham, Jr.
Winthrop S. Emmet* Trustee April 21, 1995
- -------------------
Winthrop S. Emmet
Leland Miles* Trustee April 21, 1995
- -------------------
Leland Miles
A. M. Moody III* Trustee April 21, 1995
- -------------------
A. M. Moody III
Lloyd F. Pierce* Trustee April 21, 1995
- -------------------
Lloyd F. Pierce
George R. Prefer* Trustee April 21, 1995
- -------------------
George R. Prefer
Raymond Van Houtte* Trustee April 21, 1995
- -------------------
Raymond Van Houtte
*By: /s/ H. Day Brigham, Jr.
- -----------------------------
H. Day Brigham, Jr.
Attorney-in-Fact
<PAGE>
EXHIBIT INDEX
The following Exhibits are filed as part of this Amendment to the
Registration Statement pursuant to General Instructions E of Form N-1A.
Page in
Sequential
Numbering
Exhibit No. Description System
- -------------------------------------------------------------------------------
(10) Opinion of Counsel..................................... ____
(11) Auditors' Consent...................................... ____
(16) Schedule for Computation of Performance Quotations...... ____
<PAGE>
EXHIBIT 10
-----------
April 12, 1995
The Wright Managed Income Trust
24 Federal Street
Boston, MA 02110
Gentlemen:
The Wright Managed Income Trust (the "Trust") is a Massachusetts
business trust created under a Declaration of Trust dated February 17, 1983 (As
amended and restated December 19, 1984), as further amended from time to time
(the "Declaration of Trust"), executed and delivered in Boston, Massachusetts. I
am of the opinion that all legal requirements have been complied with in the
creation of the Trust, and that said Declaration of Trust is legal and valid.
The Trustees of the Trust have the powers set forth in the Declaration
of Trust, subject to the terms, provisions and conditions therein provided. As
provided in the Declaration of Trust, the interest of shareholders is divided
into shares of beneficial interest without par value, and the number of shares
that may be issued is unlimited. The Trustees may from time to time issue and
sell or cause to be issued and sold shares of one or more series for cash or for
property. All such shares, when so issued, shall be fully paid and nonassessable
by the Trust.
By votes duly adopted, the Trustees of the Trust have designated the
series Wright Government Obligations Fund, Wright Near Term Bond Fund, Wright
Total Return Bond Fund, Wright Insured Tax Free Bond Fund, Wright Current Income
Fund and Wright U.S. Treasury Money Market Fund (the "Series") and have
authorized the issuance of shares of beneficial interest, without par value, of
such series. The Trust intends to register under the Securities Act of 1933, as
amended, 20,416,158 of its shares of beneficial interest with Post-Effective
Amendment No. 19 to its Registration Statement on Form N-1A (the "Amendment")
with the Securities and Exchange Commission.
I have examined originals, or copies, certified or otherwise identified
to my satisfaction, of such certificates, records and other documents as I have
deemed necessary or appropriate for the purpose of this opinion, including the
Declaration of Trust and votes adopted by the Trustees. Based upon the
foregoing, and with respect to Massachusetts law (other than the Massachusetts
Uniform Securities Act), only to the extent that Massachusetts law may be
applicable and without reference to the laws of the other several states or of
the United States of America, I am of the opinion that under existing law:
<PAGE>
1. The Trust is a trust with transferable shares of beneficial interest
organized in compliance with the laws of The Commonwealth of Massachusetts, and
the Declaration of Trust is legal and valid under the laws of The Commonwealth
of Massachusetts.
2. Shares of beneficial interest of the Series registered by the
Amendment may be legally and validly issued in accordance with the Declaration
of Trust upon receipt by the Trust of payment in compliance with the Declaration
of Trust and, when so issued and sold, will be fully paid and nonassessable by
the Trust.
I am a member of the Massachusetts bar and have acted as internal legal
counsel of the Trust in connection with the Amendment, and I hereby consent to
the filing of this opinion with the Securities and Exchange Commission as an
exhibit thereto.
Very truly yours,
/s/ H. Day Brigham, Jr.
-----------------------
H. Day Brigham, Jr., Esq.
<PAGE>
EXHIBIT 11
----------
INDEPENDENT AUDITORS' CONSENT
We consent to the incorporation by reference in this Post-Effective
Amendment No. 19 to the Registration Statement (1933 Act File No. 2-81915) of
The Wright Managed Income Trust of our reports on the financial statements of
the Wright U.S. Treasury Money Market Fund (one of the series constituting The
Wright Managed Income Trust) dated February 3, 1995 and our report on the
financial statements of Wright Government Obligations Fund, Wright Near Term
Bond Fund, Wright Total Return Bond Fund, Wright Insured Tax-Free Bond Fund and
Wright Current Income Fund (five of the series constituting The Wright Managed
Income Trust) dated February 3, 1995 which are incorporated by reference in the
Statement of Additional Information and to the reference to us under the heading
"Financial Highlights" appearing in the Prospectuses which is a part of such
Registration Statement.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
April 12, 1995
<PAGE>
EXHIBIT 16
----------
SCHEDULE FOR COMPUTATION OF PERFORMANCE QUOTATIONS
The average annual total return of each Fund for the one, three,five and
ten-year periods ended December 31, 1994 and the period from inception to
December 31, 1994 was as follows:
<TABLE>
<CAPTION>
Period Ended 12/31/94 Inception
--------------------------------------
1 3 5 10 to Inception
Year Years Years Years 12/31/94 Date
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Wright Government Obligations Fund............... -8.7% 4.3% 7.2% 10.1% 10.2% 7/25/83
Wright Near Term Bond Fund....................... -3.1% 3.6% 6.3% 7.9% 8.3% 7/25/83
Wright Total Return Bond Fund.................... -6.6% 3.6% 6.2% 9.3% 9.6% 7/25/83
Wright Insured Tax Free Bond Fund................ -4.1% 4.4% 5.9% -- 6.7% 4/10/85
Wright Current Income Fund....................... -3.3% 3.2% 6.9% -- 7.9% 4/15/87
- ------------------------------------------------------------------------------------------------------------------------------------
</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, 1994, the yield of each Fund was
as follows:
30-Day Period Ended
December 31, 1994*
- --------------------------------------------------------------------------------
Wright Government Obligations Fund 7.16%
Wright Near Term Bond Fund 6.94%
Wright Total Return Bond Fund 7.43%
Wright Insured Tax Free Bond Fund 4.87%
Wright Current Income Fund 7.47%
- --------------------------------------------------------------------------------
* 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 estimated for debt securities other than mortgage
certificates by dividing the year-end market value times the
yield 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 1993 expense amounts by 360
or the number of days the Fund was in existance.
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 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.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000715165
<NAME> WRIGHT MANAGED INCOME TRUST
<SERIES>
<NUMBER> 1
<NAME> WRIGHT GOVERNMENT OBLIGATIONS FUND
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> DEC-31-1994
<INVESTMENTS-AT-COST> 16,272,905
<INVESTMENTS-AT-VALUE> 16,135,275
<RECEIVABLES> 320,337
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 282,256
<TOTAL-ASSETS> 16,737,868
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 79,453
<TOTAL-LIABILITIES> 79,453
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 17,752,571
<SHARES-COMMON-STOCK> 1,360,117
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 7,444
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (963,970)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (137,630)
<NET-ASSETS> 16,658,415
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 1,630,680
<OTHER-INCOME> 0
<EXPENSES-NET> 191,226
<NET-INVESTMENT-INCOME> 1,439,454
<REALIZED-GAINS-CURRENT> 358,064
<APPREC-INCREASE-CURRENT> (3,989,643)
<NET-CHANGE-FROM-OPS> (2,192,125)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,439,554
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 162,879
<NUMBER-OF-SHARES-REDEEMED> 943,611
<SHARES-REINVESTED> 62,116
<NET-CHANGE-IN-ASSETS> (13,187,713)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 84,992
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 226,231
<AVERAGE-NET-ASSETS> 21,408,096
<PER-SHARE-NAV-BEGIN> 14.36
<PER-SHARE-NII> 0.880
<PER-SHARE-GAIN-APPREC> (2.110)
<PER-SHARE-DIVIDEND> (0.880)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.25
<EXPENSE-RATIO> 0.9
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000715165
<NAME> WRIGHT MANAGED INCOME TRUST
<SERIES>
<NUMBER> 2
<NAME> WRIGHT NEAR TERM BOND FUND
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> DEC-31-1994
<INVESTMENTS-AT-COST> 216,713,961
<INVESTMENTS-AT-VALUE> 210,889,966
<RECEIVABLES> 3,599,480
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 214,489,446
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2,367,224
<TOTAL-LIABILITIES> 2,367,224
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 241,088,678
<SHARES-COMMON-STOCK> 21,387,764
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 201,542
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (23,344,003)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (5,823,995)
<NET-ASSETS> 212,122,222
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 18,859,242
<OTHER-INCOME> 0
<EXPENSES-NET> 2,180,147
<NET-INVESTMENT-INCOME> 16,679,095
<REALIZED-GAINS-CURRENT> (6,936,070)
<APPREC-INCREASE-CURRENT> (20,360,712)
<NET-CHANGE-FROM-OPS> (10,617,687)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 16,671,903
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 4,457,277
<NUMBER-OF-SHARES-REDEEMED> 19,306,382
<SHARES-REINVESTED> 1,093,362
<NET-CHANGE-IN-ASSETS> (168,794,713)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,266,025
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,180,147
<AVERAGE-NET-ASSETS> 292,797,408
<PER-SHARE-NAV-BEGIN> 10.84
<PER-SHARE-NII> 0.589
<PER-SHARE-GAIN-APPREC> (0.920)
<PER-SHARE-DIVIDEND> (0.589)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.92
<EXPENSE-RATIO> 0.8
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000715165
<NAME> WRIGHT MANAGED INCOME TRUST
<SERIES>
<NUMBER> 3
<NAME> WRIGHT TOTAL RETURN BOND FUND
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> DEC-31-1994
<INVESTMENTS-AT-COST> 151,610,155
<INVESTMENTS-AT-VALUE> 141,776,457
<RECEIVABLES> 2,906,076
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 4,225
<TOTAL-ASSETS> 144,686,758
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,190,024
<TOTAL-LIABILITIES> 1,190,024
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 155,168,307
<SHARES-COMMON-STOCK> 12,556,303
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 46,213
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (1,884,088)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (9,833,698)
<NET-ASSETS> 143,496,734
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 13,239,635
<OTHER-INCOME> 0
<EXPENSES-NET> 1,478,201
<NET-INVESTMENT-INCOME> 11,761,434
<REALIZED-GAINS-CURRENT> (1,884,088)
<APPREC-INCREASE-CURRENT> (23,935,733)
<NET-CHANGE-FROM-OPS> (14,058,387)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 11,757,984
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3,088,029
<NUMBER-OF-SHARES-REDEEMED> 11,284,858
<SHARES-REINVESTED> 800,418
<NET-CHANGE-IN-ASSETS> (116,016,677)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 824,625
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,478,201
<AVERAGE-NET-ASSETS> 192,775,447
<PER-SHARE-NAV-BEGIN> 13.01
<PER-SHARE-NII> 0.740
<PER-SHARE-GAIN-APPREC> (1.580)
<PER-SHARE-DIVIDEND> (0.740)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.43
<EXPENSE-RATIO> 0.8
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000715165
<NAME> WRIGHT MANAGED INCOME TRUST
<SERIES>
<NUMBER> 4
<NAME> WRIGHT INSURED TAX-FREE BOND FUND
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> DEC-31-1994
<INVESTMENTS-AT-COST> 11,284,130
<INVESTMENTS-AT-VALUE> 11,175,290
<RECEIVABLES> 207,080
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 11,382,370
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 735,493
<TOTAL-LIABILITIES> 735,493
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 10,747,504
<SHARES-COMMON-STOCK> 966,095
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 7,513
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 701
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (108,840)
<NET-ASSETS> 10,646,877
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 829,636
<OTHER-INCOME> 0
<EXPENSES-NET> 132,029
<NET-INVESTMENT-INCOME> 697,607
<REALIZED-GAINS-CURRENT> 103,903
<APPREC-INCREASE-CURRENT> (1,502,272)
<NET-CHANGE-FROM-OPS> (703,763)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (697,473)
<DISTRIBUTIONS-OF-GAINS> (103,201)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 307,219
<NUMBER-OF-SHARES-REDEEMED> 889,361
<SHARES-REINVESTED> 52,115
<NET-CHANGE-IN-ASSETS> (7,558,336)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 57,725
<INTEREST-EXPENSE> 10,183
<GROSS-EXPENSE> 190,848
<AVERAGE-NET-ASSETS> 14,414,968
<PER-SHARE-NAV-BEGIN> 12.17
<PER-SHARE-NII> 0.560
<PER-SHARE-GAIN-APPREC> (1.050)
<PER-SHARE-DIVIDEND> (0.560)
<PER-SHARE-DISTRIBUTIONS> (0.100)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.02
<EXPENSE-RATIO> 0.9
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000715165
<NAME> WRIGHT MANAGED INCOME TRUST
<SERIES>
<NUMBER> 5
<NAME> WRIGHT CURRENT INCOME TRUST
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> DEC-31-1994
<INVESTMENTS-AT-COST> 90,853,201
<INVESTMENTS-AT-VALUE> 84,063,824
<RECEIVABLES> 580,067
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 84,643,891
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 466,287
<TOTAL-LIABILITIES> 466,287
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 91,666,387
<SHARES-COMMON-STOCK> 8,670,470
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> (1,238)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (698,168)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (6,789,377)
<NET-ASSETS> 84,177,604
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 7,643,220
<OTHER-INCOME> 0
<EXPENSES-NET> 825,330
<NET-INVESTMENT-INCOME> 6,817,890
<REALIZED-GAINS-CURRENT> (682,417)
<APPREC-INCREASE-CURRENT> (10,057,612)
<NET-CHANGE-FROM-OPS> (3,922,139)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 6,817,890
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 1,238
<NUMBER-OF-SHARES-SOLD> 1,447,569
<NUMBER-OF-SHARES-REDEEMED> 4,014,808
<SHARES-REINVESTED> 530,312
<NET-CHANGE-IN-ASSETS> (20,238,740)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 403,012
<INTEREST-EXPENSE> 5,988
<GROSS-EXPENSE> 825,330
<AVERAGE-NET-ASSETS> 100,065,560
<PER-SHARE-NAV-BEGIN> 10.75
<PER-SHARE-NII> 0.690
<PER-SHARE-GAIN-APPREC> (1.040)
<PER-SHARE-DIVIDEND> (0.690)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.71
<EXPENSE-RATIO> 0.8
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000715165
<NAME> WRIGHT MANAGED INCOME TRUST
<SERIES>
<NUMBER> 6
<NAME> WRIGHT U.S. TREASURY MONEY MARKET FUND
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> DEC-31-1994
<INVESTMENTS-AT-COST> 67,211,285
<INVESTMENTS-AT-VALUE> 67,211,285
<RECEIVABLES> 1,690,721
<ASSETS-OTHER> 10,070
<OTHER-ITEMS-ASSETS> 325,004
<TOTAL-ASSETS> 69,237,080
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 360,238
<TOTAL-LIABILITIES> 360,238
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 68,876,842
<SHARES-COMMON-STOCK> 68,876,842
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 68,876,842
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 1,899,847
<OTHER-INCOME> 0
<EXPENSES-NET> 202,623
<NET-INVESTMENT-INCOME> 1,697,224
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 57,865,769
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,697,224
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 57,865,769
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 157,447
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 317,535
<AVERAGE-NET-ASSETS> 45,102,222
<PER-SHARE-NAV-BEGIN> 1.00
<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> 1.00
<EXPENSE-RATIO> 0.71
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
