- -------------------------------------------------------------------------------
Description of art work on front cover of report.
Three vertical stripes on right side of page. One blue, one green and one red.
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SEMI-
ANNUAL
REPORT
JUNE 30, 1996
THE WRIGHT MANAGED
EQUITY TRUST
THE WRIGHT MANAGED
INCOME TRUST
THE WRIGHT MANAGED INVESTMENT FUNDS
<PAGE>
THE WRIGHT MANAGED BLUE CHIP INVESTMENT FUNDS
THE WRIGHT MANAGED BLUE CHIP INVESTMENT FUNDS CONSISTS OF FOUR EQUITY
FUNDS FROM THE WRIGHT MANAGED EQUITY RUST, A MONEY MARKET FUND AND FOUR
OTHER FIXED INCOME FUNDS FROM THE WRIGHT MANAGED INCOME TRUST. EACH OF THE
NINE FUNDS HAVE DISTINCT INVESTMENT OBJECTIVES AND POLICIES. THEY CAN BE
USED SINGLY OR IN COMBINATION TO ACHIEVE VIRTUALLY ANY OBJECTIVE. FURTHER,
AS THEY ARE ALL "NO-LOAD" FUNDS (NO COMMISSIONS OR SALES CHARGES),
PORTFOLIO ALLOCATION STRATEGIES CAN BE ALTERED AS DESIRED TO MEET CHANGING
MARKET CONDITIONS OR CHANGING REQUIREMENTS WITHOUT INCURRING ANY SALES
CHARGES.
APPROVED WRIGHT INVESTMENT LIST
Securities selected for each of the three U.S. equity portfolios are drawn from
investment lists prepared by Wright Investors' Service known as The Approved
Wright Investment List (the "AWIL"). Companies on the AWIL are selected by
Wright as having the highest investment quality among those equity securities
which are considered as "investment grade". The corporations may be large or
small, exchange traded or over-the-counter, and may include those not currently
paying dividends on their shares. Companies on the AWIL are, in the opinion of
Wright, soundly financed and have established records of earnings profitability
and equity growth. All have established investment acceptance and active, liquid
markets for their publicly owned shares.
A separate list, known as the International Approved Wright Investment
List, is prepared for non-U.S. companies.
FOUR EQUITY FUNDS
WRIGHT SELECTED BLUE CHIP EQUITIES FUND (WBC) seeks to enhance total investment
return of price appreciation plus income by providing active management of
equities of well-established companies meeting strict quality standards.
Equities selected are limited to those companies on the AWIL whose current
operations reflect defined, quantified characteristics which have been
determined to offer comparatively superior total investment returns over the
intermediate term. The process selects those companies from the AWIL, regardless
of size, based on Wright's evaluation of their outlook as described above.
Investments are equally weighted.
WRIGHT JUNIOR BLUE CHIP EQUITIES (WJBC). This portfolio seeks to enhance total
investment return of price appreciation plus income by providing management of
equities of smaller companies still experiencing their rapid growth period.
Equity securities selected are limited to those companies on the AWIL which when
ranked by stock market capitalization represent the smaller companies on the
list. These companies are then ranked by their outlook and those with higher
ranking are considered for purchase. Investments are equally weighted.
WRIGHT QUALITY CORE EQUITIES FUND (WQC) seeks to enhance total investment return
of price appreciation plus income by providing management of a broadly
diversified portfolio of equities of well-established companies meeting strict
quality standards. In selecting companies from the AWIL for this portfolio, the
Investment Committee of Wright Investors' Service first ranks all AWIL companies
by comparative market value. The smaller companies are eliminated from
consideration. From the remaining companies Wright's Investment Committee
selects, based on quantitative formulae, those companies which are expected to
do better over the next one to two years. The quantitative formulae takes into
consideration factors such as over/under valuation and compatibility with
current market trends. Investments in the portfolio are equally weighted in the
selected securities.
<PAGE>
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC). This is a broadly
diversified portfolio of equities of well-established, non-U.S. companies
meeting strict quality standards. The portfolio may buy common stocks traded on
the securities exchange of the country in which the company is based or it may
purchase American Depositary Receipts (ADR's) traded in the United States. The
portfolio is denominated in U.S. dollars and investors should understand that
fluctuations in foreign exchange rates may impact the value of their investment.
A MONEY MARKET FUND
WRIGHT U.S. TREASURY MONEY MARKET FUND seeks a high rate of current income but
with added safety that comes from limiting its investments to securities of the
U.S. Government and its agencies. There may be an added advantage to investors
that reside in states and municipalities that do not tax dividend income from
mutual funds investing exclusively in U.S. Government securities.
FOUR FIXED-INCOME FUNDS
WRIGHT U.S. TREASURY NEAR TERM FUND (WNTB), like WUSTB, is a diversified
portfolio concentrating on bonds and other obligations of the U.S. Government,
which are guaranteed as to principal and interest by the full faith and credit
of the U.S. Government. The average weighted maturity varies from one to five
years. This portfolio 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 money market instruments and who is also
tolerant of modest fluctuation in capital (i.e. compared with somewhat greater
fluctuation likely with longer term fixed income securities). Dividends are
accrued daily and paid monthly.
WRIGHT U.S. TREASURY FUND (WUSTB) is invested in U.S. Treasury bills, notes and
bonds, which are guaranteed as to principal and interest by the full faith and
credit of the U.S. Government, and which are not expected to be taxable by
certain state or municipal governments. Maturities are relatively long.
Dividends are accrued daily and paid monthly.
WRIGHT TOTAL RETURN BOND FUND (WTRB) is a diversified portfolio of quality
government and corporate bonds and other debt securities of varying maturities
which, in the Adviser's opinion, will achieve the portfolio objective of best
total return, i.e. the best total of ordinary income plus capital appreciation.
Accordingly, investment selections and maturities may differ depending on the
particular phase of the interest rate cycle. Dividends are accrued daily and
paid monthly.
WRIGHT CURRENT INCOME FUND (WCIF) may be invested in a variety of securities and
may use a number of strategies to produce a high level of income with reasonable
stability of principal. Currently, this portfolio is primarily invested in
mortgage Participation Certificates issued by the Government National Mortgage
Association (GNMA). GNMA guarantees that the fund will receive timely principal
and interest payments. The Fund reinvests all principal payments. Dividends are
accrued daily and paid monthly.
<PAGE>
TABLE OF CONTENTS
INVESTMENT OBJECTIVES........................ Inside Front Cover
LETTER TO SHAREHOLDERS...................................... 2
WRIGHT MANAGED EQUITY FUNDS
-- Dividend Distributions............................... 6
WRIGHT MANAGED INCOME FUNDS --
Dividend Distributions.................................. 8
THE WRIGHT MANAGED EQUITY TRUST
WRIGHT SELECTED BLUE CHIP EQUITIES FUND (WBC) --
Portfolio of Investments............................... 10
Financial Statements................................... 13
WRIGHT JUNIOR BLUE CHIP EQUITIES FUND (WJBC) --
Portfolio of Investments............................... 16
Financial Statements................................... 18
WRIGHT QUALITY CORE EQUITIES FUND (WQC) --
Portfolio of Investments............................... 21
Financial Statements................................... 24
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC) --
Portfolio of Investments............................... 27
Financial Statements................................... 30
THE WRIGHT MANAGED INCOME TRUST
WRIGHT U.S. TREASURY MONEY MARKET FUND (WTMM) --
Portfolio of Investments............................... 37
Financial Statements................................... 38
WRIGHT U.S. TREASURY NEAR TERM FUND (WNTB) --
Portfolio of Investments............................... 40
Financial Statements................................... 41
WRIGHT U.S. TREASURY FUND (WUSTB) --
Portfolio of Investments............................... 44
Financial Statements................................... 45
WRIGHT TOTAL RETURN BOND FUND (WTRB) --
Portfolio of Investments............................... 48
Financial Statements................................... 50
WRIGHT CURRENT INCOME FUND (WCIF) --
Portfolio of Investments................................. 53
Financial Statements..................................... 57
<PAGE>
REPORT TO SHAREHOLDERS
July, 1996
Dear Shareholders:
The U.S. stock market extended its advance through the first half of 1996,
although some loss of momentum was apparent near midyear. The Dow Jones
Industrial Average inched ahead by 1% in the second quarter, a small fraction of
its 9% first-quarter advance. Over-the-counter stocks actually performed
slightly better in the second quarter than in the first before giving up some of
these gains in late June and early July.
The markets' appraisal of economic conditions underwent a significant shift
during the second quarter, as investors began to fear that "the best of all
worlds" (i.e., moderate growth plus low inflation) was finally becoming "too
much of a good thing" (i.e., an overheating economy). Interest rates rose during
the first half of 1996, the result of stronger-than-expected business
conditions, suspicions that higher inflation was looming, and expectations that
the Federal Reserve would tighten monetary policy during the summer. Despite the
economy's upshift to greater growth during the quarter, however, inflation
indicators have for the most part remained favorable, which was no doubt a
factor in the Fed's decision to hold the line on interest rates at its FOMC
meeting in July.
In the face of renewed weakness in the bond market, the long-awaited, perhaps
long-overdue correction in stock prices appeared to have arrived during the
first weeks of July. In the short run, with some modest Fed tightening and
somewhat higher bond yields possible, the risk of interim stock market weakness
this summer has increased. Some further bond price weakness is also possible in
the short run, particularly if the Fed tightens. But with real long-term yields
topping 4%, a good buying opportunity in bonds may well be approaching. However
volatile the markets become in the near term, investors are likely to be
rewarded for holding high-quality stocks.
As always, it should be understood that past performance does not guarantee
future results and that investment return and principal value will fluctuate so
that an investor's shares, when redeemed, may be worth more or less than their
original cost. Investing internationally entails additional risks, such as
currency fluctuations and potential political instability.
The following paragraphs discuss the various economic, political and market
factors affecting the investment performance of the Wright Equity and
Fixed-Income Funds during the first half of 1996 and prospects for the period
ahead.
Sincerely,
Peter M. Donovan
President
<PAGE>
STOCK FUNDS
WRIGHT SELECTED BLUE CHIP EQUITIES FUND
The Wright Selected Blue Chip Fund had a total investment return of 3.8% for the
second quarter of 1996, compared with 4.5% returns earned by both the S&P 500
Composite and the Lipper Equity Growth Fund Average. For the first six months of
1996, the Selected Blue Chip Fund earned an 8.6% total return, which compares
with a 10.1% return for the S&P 500.
During the second quarter, the Fund was boosted by its relatively large
positions compared to the S&P 500 in retailers, printing and publishing, and
construction stocks. Underweighting in some weak stock groups - paper, metal
producers, and utilities - also contributed to the Fund's relative performance
during the first half of 1996. Fund performance was hampered relative to the S&P
500 by an underweighting in the electronics sector, which, despite some profit
taking during June, had an above-average showing for the entire first half.
Investors continued to exhibit an anti-quality bias during the second quarter,
favoring new issues and some of the more speculative stocks, at the expense of
higher-quality stocks that have shown stable growth.
For the five years ahead, the stocks in the Selected Blue Chip Fund are forecast
to achieve earnings growth averaging almost 12% per annum, half again as much as
is projected for the S&P 500. In view of these superior growth prospects, the
Fund holdings' average price/earnings multiple of 14 times estimated 1996
earnings is judged to be comparatively attractive versus the S&P 500's P/E of
18.
WRIGHT JUNIOR BLUE CHIP EQUITIES FUND
The Wright Junior Blue Chip Fund had a total investment return of 2.3% in the
second quarter, lagging the 3.5% total return for the Value Line Composite and
the S&P SmallCap Index's 5.2%. For the six months ended June 30, 1996, the JBC
Fund had a total investment return of 6.3%.
For the five years ahead, earnings growth for the average Junior Blue Chip Fund
holding is forecast to average 12% per year, as compared with a growth rate of
about 7% for the average S&P 500 company. At midyear 1996, stocks in the Junior
Blue Chip Fund averaged a relatively modest 13.4 times forecast 1996 earnings.
WRIGHT QUALITY CORE EQUITIES FUND
The Quality Core Fund earned a total investment return of 2.4% during the second
quarter, behind the 4.5% return averaged by both the Lipper Equity Growth Fund
Average and the S&P 500. Over the six months to June 1996, the Fund returned
7.6%.
Stocks in the Quality Core have above-average quality characteristics compared
with the average S&P 500 stock. For the coming five years, the average Quality
Core holding is forecast to have earnings growth averaging nearly twice the S&P
500's projected 7% growth rate. Despite this fundamental superiority, the
market's recent speculative nature has transformed the premium pricing normally
attached to high-quality stocks into a discount; at June 30, 1996, the stocks in
the Quality Core Fund were priced at 18 times trailing 12-month earnings (vs 20
times for the S&P 500).
<PAGE>
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND
The International Blue Chip Fund had a total investment return of 3.7% in the
second quarter of 1996, above the 2.0% return reported for the FT/S&P Actuaries
World ex U.S. Index but behind the 4.5% return earned by the S&P 500. For the
first half of 1996, the IBC Fund's total return of 10.8% exceeded both the 5.0%
return of the FT/S&P World ex U.S. index and the 10.1% return for the S&P 500.
The IBC Fund's above-average return for 1996 was achieved despite a generally
rising U.S. dollar.
The International Blue Chip Fund's relatively low exposure in Japan contributed
to its superior performance once again in the second quarter of 1996. For the
first half of 1996, the Fund's performance also benefitted its positions in the
French, Nordic and Dutch markets, which all did well for the period.
Going forward, most of the major economies of Europe and the Pacific Rim area
can expect improving economic growth, as well as a continuation of moderate
inflation, conditions which should support higher stock prices. Historically,
the stocks in the Fund have shown superior growth and profitability compared to
those included in the FT/S&P index. Moreover, the Fund's average valuation at
midyear 1996 (current P/E ratio of 20x compared to 24x for the FT/S&P World ex
U.S.) is judged to be attractive.
FIXED-INCOME FUNDS
WRIGHT U.S. TREASURY MONEY MARKET FUND
The coupon-equivalent yield on 90-day Treasury bills rose slightly to 5.2% at
the end of the second quarter of 1996 from 5.1% three months earlier. The Wright
U.S. Treasury Money Market Fund had a total investment return of 2.4% for the
first half of 1996, as compared with 2.5% return for 90-day Treasury bills and
2.4% for the average Treasury money market fund. At the end of the second
quarter, the Wright Treasury Money Market Fund had a maturity of 83 days, up
from 79 days three months earlier but down from 89 days at the start of 1996.
Although the case for a tighter monetary policy is not compelling, an increase
in interest rates by the Fed before summer's end cannot be ruled out. Signs of
economic growth and attendant fears of escalating inflation may also push
short-term market rates up in the near term even without Fed tightening. It is
possible therefore that money market fund returns may move up modestly from the
5% range averaged in 1995-96.
WRIGHT U.S. TREASURY NEAR TERM FUND
The average maturity of the Wright U.S. Treasury Near Term Fund edged down to
1.9 years at the end of June 1996 from 2.1 years three months earlier. WNTB
earned a 0.7% total investment return during the first half of 1996, lagging the
2.5% return earned on 90-day Treasury bills during the period.
At the end of the second quarter, 83% of the Fund's assets were U.S. Treasury
securities with the remaining 17% in U.S. government agency securities. At June
30, Fund yield to maturity was 6.0%, compared to 5.8% three months earlier.
<PAGE>
During the second quarter, yields on government securities in the two-year
maturity range increased 32 basis points, roughly half the 65 basis-point rise
in the first quarter, to 6.1%.
WRIGHT U.S. TREASURY FUND
In general, bond market returns in the first half of 1996 were unimpressive; the
Wright U.S. Treasury Fund lost 6.1% on a total return basis, as compared with a
loss of 1.9% for Lehman Brothers long-term government/corporate bond index and a
loss of 0.3% for the Lipper fixed-income fund average. At midyear 1996, holdings
in the Wright U.S. Treasury Fund had an average maturity of 8.4 years, down from
12.9 years at the end of the first quarter; duration reduced from 7.9 years to
6.1. At June 30, the average yield to maturity of the Treasury securities held
in the Wright U.S. Treasury Fund was 6.7%.
WRIGHT TOTAL RETURN BOND FUND
In a difficult bond market environment, the Wright Total Return Bond Fund was
down 4.2% in total return terms during the first half of 1996. This compares
with a decline of 0.3% for the Lipper bond fund average.
At midyear 1996, Fund holdings consisted of 56% U.S. Treasury securities, 10%
U.S. government agency issues and 34% high-quality corporate bonds. Average
yield to maturity at the end of the second quarter was 6.8%, up slightly from
6.7% three months earlier. Reflecting the higher risks seen during the second
quarter, the Fund's maturity was reduced significantly over the period (from
11.3 years to 7.9 years); its duration declined to 5.9 years at midyear from 7.3
years at the end of the first quarter.
WRIGHT CURRENT INCOME FUND
The Wright Current Income Fund is invested entirely in mortgage-backed
securities (Ginnie Maes) backed by the U.S. government. With mortgage rates
rising during the first half of 1996, the Current Income Fund declined 0.7% in
total return terms, in line with the 0.8% decline estimated for the Morningstar
government mortgage fund average.
At June 30, 1996, the Wright Current Income Fund had an indicated current yield
of 6.5%, an advantage of about 3.5 percentage points over the current rate of
inflation. In Wright's view, this Fund's relatively high yield and stability
make it suitable for income-oriented investors.
<PAGE>
<TABLE>
<CAPTION>
DIVIDEND DISTRIBUTIONS
(UNAUDITED)
=============================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
N.A.V. Distri- Distri- 12 Month 5 Year 10 Year Cum.
Period Per bution bution Shares Invstmnt Invstmnt Invstmnt Invstmnt
Ending Share $ P/S in Shares Owned Value Return Return Return Return
(Annualized) (Annualized)(Annualized)
- -----------------------------------------------------------------------------------------------------------------------------
THE EQUITY TRUST -- WRIGHT SELECTED BLUE CHIP EQUITIES FUND (WBC)
- ----------------------------------------------------------------------
1/4/83 $10.00 100.00 $1,000.00
Dec. 95 16.83 0.830 0.050060 268.85 4,524.70 30.34% 12.82% 11.59% 12.32%
Jan. 96 17.11 268.85 4,599.98 31.27% 12.30% 11.76% 12.38%
Feb. 96 17.38 268.85 4,672.57 26.73% 11.51% 11.11% 12.44%
Mar. 96 17.56 0.050 0.002851 269.61 4,734.42 27.61% 10.68% 10.69% 12.46%
Apr. 96 17.78 269.61 4,793.73 26.44% 11.24% 10.80% 12.49%
May 96 18.16 269.61 4,896.19 25.44% 11.00% 10.55% 12.58%
Jun. 96 18.17 0.050 0.002776 270.36 4,912.48 22.97% 11.62% 10.46% 12.53%
- -----------------------------------------------------------------------------------------------------------------------------
THE EQUITY TRUST -- WRIGHT JUNIOR BLUE CHIP EQUITIES FUND (WJBC)
- -----------------------------------------------------------------------
1/15/85 $10.00 100.00 $1,000.00
Dec. 95 10.85 1.220 0.112442 251.19 2,725.41 20.51% 12.34% 8.05% 9.58%
Jan. 96 10.93 251.19 2,745.51 22.97% 10.88% 8.14% 9.58%
Feb. 96 11.18 251.19 2,808.31 19.82% 9.80% 7.59% 9.73%
Mar. 96 11.23 0.045 0.004032 252.20 2,832.24 20.41% 8.83% 7.03% 9.74%
Apr. 96 11.28 252.20 2,844.85 18.25% 9.35% 7.06% 9.70%
May 96 11.55 252.20 2,912.94 19.97% 9.01% 6.80% 9.86%
Jun. 96 11.46 0.025 0.002187 252.75 2,896.57 16.23% 9.29% 6.84% 9.73%
- -----------------------------------------------------------------------------------------------------------------------------
THE EQUITY TRUST -- WRIGHT QUALITY CORE EQUITIES FUND (WQC)
- -------------------------------------------------------------
7/22/85 $10.00 100.00 $1,000.00
Dec. 95 12.65 1.880 0.150641 286.43 3,623.34 28.98% 14.18% 12.31% 13.12%
Jan. 96 12.88 286.43 3,689.24 29.85% 13.19% 12.45% 13.20%
Feb. 96 13.12 286.43 3,757.99 26.35% 12.03% 11.76% 13.29%
Mar. 96 13.26 0.035 0.002642 287.19 3,808.12 26.66% 11.31% 11.28% 13.32%
Apr. 96 13.41 287.19 3,851.20 25.92% 11.61% 11.42% 13.33%
May 96 13.65 287.19 3,920.12 25.33% 11.00% 11.06% 13.41%
Jun. 96 13.55 0.030 0.002232 287.83 3,900.09 21.80% 11.65% 10.84% 13.25%
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE EQUITY TRUST -- WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC)
- -------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
7/22/85 $10.00 100.00 $1,000.00
Dec. 95 14.77 0.100 0.006873 106.21 1,568.69 13.61% 10.04% -- 7.42%
Jan. 96 15.12 106.21 1,605.87 20.06% 9.89% -- 7.71%
Feb. 96 15.30 106.21 1,624.98 18.32% 8.30% -- 7.81%
Mar. 96 15.77 106.21 1,674.90 15.65% 10.00% -- 8.20%
Apr. 96 16.12 106.21 1,712.08 15.03% 10.14% -- 8.45%
May 96 16.31 106.21 1,732.26 14.12% 10.51% -- 8.53%
Jun. 96 16.36 106.21 1,737.57 13.29% 11.57% -- 8.47%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INCOME TRUST -- WRIGHT U.S. TREASURY MONEY MARKET FUND (WTMM) - 1996
- --------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
MONTHLY CUMULATIVE ANNUALIZED INVESTMENT RETURN
MONTH NET INCOME RETURN ______________________________________
ENDING PER SHARE PER SHARE (a) 1 Month 3 Month Cumulative
- -------------------------------------------------------------------------------------------------------------------
$1,000.00
Jan. 31 $0.004108629 1,004.11 4.84% -- 4.84%
Feb. 29 0.003776815 1,007.90 4.75% -- 4.80%
Mar. 31 0.003977021 1,011.91 4.68% 4.76% 4.76%
Apr. 30 0.003805197 1,015.76 4.63% 4.69% 4.73%
May 31 0.003923646 1,019.75 4.62% 4.64% 4.70%
Jun. 30 0.003831601 1,023.65 4.66% 4.64% 4.70%
------------
Total $0.023422909
(a): Assumes reinvestment of monthly dividends.
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
N.A.V. Distri- Distri- 12 Month 5 Year 10 Year Cum.
Period Per bution bution Shares Invstmnt Invstmnt Invstmnt Invstmnt
Ending Share $ P/S in Shares Owned Value Return Return Return Return
(Annualized) (Annualized)(Annualized)
- -----------------------------------------------------------------------------------------------------------------------------
THE INCOME TRUST -- WRIGHT U.S. TREASURY NEAR TERM FUND (WNTB)
- ----------------------------------------------------------------------
7/25/83 $10.00 100.000 $1,000.00
12/95 10.45 $0.053142 0.005085 265.301 2,772.40 11.93% 7.07% 7.56% 8.55%
1/96 10.48 0.052798 0.005038 266.638 2,794.36 11.34% 7.05% 7.59% 8.55%
2/96 10.37 0.050144 0.004835 267.927 2,778.40 8.98% 6.77% 7.20% 8.45%
3/96 10.30 0.052477 0.005095 269.292 2,773.71 8.24% 6.64% 6.90% 8.38%
4/96 10.24 0.050922 0.004973 270.631 2,771.27 7.08% 6.44% 6.81% 8.31%
5/96 10.21 0.051530 0.005047 271.997 2,777.09 4.69% 6.37% 7.00% 8.27%
6/96 10.22 0.049114 0.004806 273.304 2,793.17 4.67% 6.48% 6.80% 8.27%
---------
Total $0.306985
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INCOME TRUST -- WRIGHT U.S. TREASURY FUND (WUSTB)
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
7/25/83 $10.00 100.000 $1,000.00
12/95 14.71 $0.067219 0.004566 263.195 3,871.60 28.18% 11.31% 10.21% 11.51%
1/96 14.63 0.073060 0.004994 264.509 3,869.77 24.99% 11.07% 10.17% 11.41%
2/96 13.91 0.065579 0.004715 265.756 3,696.67 16.16% 9.98% 8.88% 10.93%
3/96 13.65 0.064552 0.004729 267.013 3,644.73 13.84% 9.59% 8.11% 10.73%
4/96 13.43 0.056895 0.004236 268.144 3,601.18 10.64% 9.07% 7.98% 10.56%
5/96 13.31 0.061404 0.004613 269.381 3,585.47 2.57% 8.98% 8.34% 10.45%
6/96 13.45 0.060585 0.004507 270.596 3,636.80 2.89% 9.44% 8.02% 10.50%
---------
Total $0.382075
- -------------------------------------------------------------------------------------------------------------------------------
THE INCOME TRUST -- WRIGHT TOTAL RETURN BOND FUND (WTRB)
- ----------------------------------------------------------------------
7/25/83 $10.00 100.000 $1,000.00
12/95 13.12 $0.064282 0.004900 264.767 3,473.75 21.97% 9.36% 8.88% 10.53%
1/96 13.11 0.061674 0.004704 266.013 3,487.43 20.11% 9.22% 8.96% 10.49%
2/96 12.61 0.059875 0.004748 267.276 3,370.35 13.13% 8.37% 7.73% 10.12%
3/96 12.39 0.061510 0.004964 268.603 3,327.99 10.83% 8.00% 7.00% 9.94%
4/96 12.20 0.058748 0.004815 269.896 3,292.74 8.08% 7.55% 6.87% 9.78%
5/96 12.08 0.058217 0.004819 271.197 3,276.06 2.13% 7.32% 7.23% 9.67%
6/96 12.21 0.056209 0.004604 272.446 3,326.56 2.87% 7.73% 6.92% 9.74%
---------
Total $0.356233
- --------------------------------------------------------------------------------------------------------------------------------
THE INCOME TRUST -- WRIGHT CURRENT INCOME FUND (WCIF)
- ----------------------------------------------------------------------
4/14/87 $10.00 100.000 $1,000.00
12/95 10.67 $0.056552 0.005300 198.130 2,114.04 17.46% 8.31% -- 8.97%
1/96 10.68 0.056265 0.005268 199.173 2,127.17 15.58% 8.15% -- 8.96%
2/96 10.49 0.056629 0.005398 200.249 2,100.61 11.10% 7.73% -- 8.72%
3/96 10.39 0.056195 0.005409 201.332 2,091.84 10.22% 7.49% -- 8.58%
4/96 10.30 0.056334 0.005469 202.433 2,085.06 8.27% 7.26% -- 8.46%
5/96 10.18 0.055144 0.005417 203.529 2,071.93 3.93% 6.99% -- 8.31%
6/96 10.26 0.059011 0.005752 204.700 2,100.22 4.78% 7.29% -- 8.39%
---------
Total $0.339578
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
WRIGHT SELECTED BLUE CHIP EQUITIES FUND (WBC)
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996 (UNAUDITED)
===============================================================================
Shares Value
- -------------------------------------------------------------------------------
EQUITY INTERESTS -- 98.8%
<S> <C> <C>
APPAREL -- 2.0%
Russell Corp........................ 74,100 $ 2,047,013
VF Corp............................. 44,030 2,625,289
-----------
$ 4,672,302
-----------
AUTOMOTIVE -- 2.0%
Eaton Corp.......................... 42,400 $ 2,485,700
Echlin Inc.......................... 57,500 2,177,813
-----------
$ 4,663,513
-----------
BEVERAGES -- 2.0%
Anheuser Busch...................... 34,650 $ 2,598,750
Brown Forman Corp................... 52,300 2,092,000
-----------
$ 4,690,750
-----------
CHEMICALS -- 7.3%
Clorox Company...................... 26,940 $ 2,387,558
Goodyear Tire & Rubber.............. 30,000 1,447,500
Great Lakes Chemical Corp........... 29,900 1,861,275
Lubrizol Corp....................... 79,600 2,417,850
Morton International Inc............ 63,000 2,346,750
PPG Industries...................... 42,100 2,052,375
Rohm & Haas Co...................... 30,900 1,938,975
Sherwin Williams Co................. 50,700 2,357,550
-----------
$ 16,809,833
-----------
CONSTRUCTION -- 2.5%
Clayton Homes....................... 80,000 $ 1,600,000
Fleetwood Enterprises, Inc.......... 88,200 2,734,200
Oakwood Homes Corp.*................ 70,000 1,443,750
-----------
$ 5,777,950
-----------
DIVERSIFIED -- 6.5%
Crane Company....................... 55,500 $ 2,275,500
General Electric Co................. 31,340 2,710,910
Johnson Controls.................... 34,100 2,369,950
DIVERSIFIED -- continued
Lancaster Colony Corp............... 62,000 $ 2,317,250
National Service Industries......... 65,800 2,574,425
Teleflex, Incorporated.............. 55,900 2,669,225
-----------
$ 14,917,260
-----------
DRUGS, COSMETICS & HEALTH CARE -- 5.5%
Alberto Culver Co. Class A.......... 76,500 $ 3,060,000
Bard C.R............................ 59,000 2,006,000
Bristol-Myers Squibb Co............. 26,764 2,408,760
Johnson & Johnson................... 59,800 2,960,100
Lilly (Eli) & Co.................... 36,000 2,340,000
-----------
$ 12,774,860
-----------
ELECTRICAL -- 1.1%
Emerson Electric Co................. 29,250 $ 2,643,469
-----------
ELECTRONICS -- 6.1%
Compaq Computer*.................... 40,000 $ 1,970,000
Dallas Semiconductor Corp........... 85,000 1,540,625
Hadco Corporation*.................. 60,000 1,290,000
Hewlett Packard Inc................. 23,500 2,341,188
Raytheon Co......................... 46,960 2,424,310
Seagate Technology, Inc*............ 34,700 1,561,500
Sun Microsystems Inc................ 51,000 3,002,625
-----------
$ 14,130,248
-----------
FINANCIAL -- 15.8%
AFLAC Corp.......................... 67,050 $ 2,003,119
American International Group........ 25,000 2,465,625
Bancorp Hawaii Inc.................. 55,975 2,015,100
Commerce Bancshares, Inc............ 67,449 2,301,710
Compass Bancshares.................. 69,500 2,276,125
Edwards (A.G.), Inc................. 82,300 2,232,388
Fifth Third Bancorp................. 39,850 2,151,900
First Colony Corp................... 87,400 2,709,400
First Hawaiian Inc.................. 71,700 2,043,450
First Virginia Banks Inc............ 58,265 2,330,600
MBIA Inc............................ 30,400 2,367,400
Raymond James Financial Corp........ 99,300 2,246,663
<PAGE>
FINANCIAL -- continued
Southern National Corp.............. 80,100 $ 2,543,175
Southtrust Corporation.............. 76,475 2,150,859
Star Banc Corp...................... 34,765 2,342,292
SunTrust Banks Inc.................. 62,440 2,310,280
-----------
$ 36,490,086
-----------
FOOD -- 2.0%
Hormel (George A.) & Company........ 91,700 $ 2,452,975
Universal Foods Corp................ 58,500 2,157,188
-----------
$ 4,610,163
-----------
MACHINERY & EQUIPMENT -- 4.0%
Briggs & Stratton Corp.............. 52,080 $ 2,141,790
Dover Corp.......................... 55,100 2,541,488
Ingersoll Rand Co................... 50,000 2,187,500
Pitney-Bowes Inc.................... 49,600 2,368,400
-----------
$ 9,239,178
-----------
METAL PRODUCTS MANUFACTURERS -- 4.5%
CLARCOR Inc......................... 116,950 $ 2,894,513
Kaydon Corp......................... 72,300 3,108,900
Snap-On Inc......................... 48,600 2,302,425
Trinity Industries.................. 60,000 2,040,000
-----------
$ 10,345,838
-----------
OIL, GAS & COAL -- 1.1%
Exxon Corporation................... 29,300 $ 2,545,438
-----------
PAPER -- 1.0%
Sonoco Products Co.................. 81,000 $ 2,298,375
-----------
PRINTING & PUBLISHING -- 6.2%
American Greetings Corp............. 62,000 $ 1,697,250
Banta (George) Corp................. 80,549 2,033,850
Gannett Co. Inc..................... 37,680 2,665,860
Harland (John H.) Co................ 109,800 2,703,825
Lee Enterprises, Inc................ 102,200 2,414,475
Reynolds & Reynolds Inc............. 51,600 2,747,700
-----------
$ 14,262,960
-----------
RECREATION -- 4.1%
International Dairy Queen, Inc*..... 110,500 $ 2,431,000
Luby's Cafeteria, Inc............... 102,550 2,409,925
Ryan's Family Steak House*.......... 200,000 1,850,000
Sturm, Ruger & Company, Inc......... 58,600 2,724,900
-----------
$ 9,415,825
-----------
RETAILERS -- 11.5%
Casey's General Stores.............. 96,500 $ 1,917,938
Claire's Stores Inc................. 128,000 3,536,000
Consolidated Stores Corp*........... 66,000 2,425,500
Dress Barn Inc*..................... 215,200 2,259,600
Family Dollar Stores................ 105,000 1,824,375
Hannaford Brothers Company.......... 85,100 2,776,388
The Limited Inc..................... 75,000 1,612,500
May Department Stores............... 42,800 1,872,500
Price/Costco Inc*................... 85,000 1,838,125
Rex Stores Corporation*............. 145,100 2,230,913
Rite Aid Corp....................... 69,800 2,076,550
Ross Stores Inc..................... 65,700 2,283,075
-----------
$ 26,653,464
-----------
TRANSPORTATION -- 1.5%
Atlantic Southeast Airlines......... 68,000 $ 1,921,000
Illinois Central Corp............... 55,000 1,560,625
-----------
$ 3,481,625
-----------
<PAGE>
UTILITIES -- 8.1%
Ameritech Corp...................... 40,140 $ 2,383,313
Century Telephone Enterprises....... 75,000 2,390,625
DQE, Inc............................ 76,800 2,112,000
Duke Power Co....................... 40,950 2,098,688
NIPSCO Industries Inc............... 64,600 2,600,150
Sprint Corp......................... 59,800 2,511,600
TECO Energy, Inc.................... 98,000 2,474,500
Wisconsin Energy Corp............... 74,350 2,146,856
-----------
$ 18,717,732
-----------
MISCELLANEOUS -- 4.0%
Genuine Parts Co.................... 54,050 $ 2,472,780
Leggett & Platt Inc................. 97,900 2,716,724
Marshall Industries*................ 77,865 2,180,220
Stanhome Inc........................ 67,100 1,778,150
-----------
$ 9,147,874
-----------
TOTAL EQUITY INTERESTS - 98.8%
(identified cost, $178,585,027) $228,288,743
RESERVE FUNDS -- 1.0%
Face Amount
American Express Corp., 5.39%, 7/1/96
(at amortized cost)..............$2,400,000 2,400,000
-----------
TOTAL INVESTMENTS -- 99.8%
(identified cost, $180,985,027) $230,688,743
OTHER ASSETS,
LESS LIABILITIES -- 0.2% 430,515
-----------
NET ASSETS -- 100% $231,119,258
============
* Non-income-producing security.
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
WRIGHT SELECTED BLUE CHIP EQUITIES FUND
===============================================================================
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1996 (UNAUDITED)
- -------------------------------------------------------------------------------
ASSETS:
<S> <C>
Investments --
Identified cost........................ $180,985,027
Unrealized appreciation................ 49,703,716
------------
Total Value (Note 1A)................ $230,688,743
Cash..................................... 67,598
Dividends and interest receivable........ 389,206
------------
Total Assets........................... $231,145,547
------------
LIABILITIES:
Trustee fees payable..................... $ 125
Accrued custodian fee.................... 11,200
Accrued expenses and other liabilities... 14,964
------------
Total Liabilities...................... $ 26,289
------------
NET ASSETS.................................. $231,119,258
=============
NET ASSETS CONSIST OF:
Proceeds from sales of shares (including the market
value of securities received in exchange for Fund
shares and shares issued to shareholders in
payment of distributions declared), less cost
of shares reacquired................... $169,346,234
Accumulated undistributed net realized gain
on investments (computed on the basis of
identified cost)....................... 10,757,337
Unrealized appreciation of investments (computed
on the basis of identified cost)....... 49,703,716
Undistributed net investment income...... 1,311,971
------------
Net assets applicable to outstanding shares $ 231,119,258
=============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING............................ 12,719,914
=============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST................. $ 18.17
=============
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
INVESTMENT INCOME:
<S> <C>
Income --
Dividends.............................. $ 2,418,640
Interest............................... 126,442
------------
Total Income......................... $ 2,545,082
------------
Expenses --
Investment Adviser fee (Note 2)........ $ 723,785
Administrator fee (Note 2)............. 138,614
Compensation of Trustees not affiliated with
the Investment Adviser or Administrator 950
Custodian fee (Note 2)................. 33,517
Transfer and dividend disbursing agent fees 24,340
Shareholder communication expense...... 18,299
Distribution expenses (Note 3)......... 229,971
Audit services......................... 26,450
Legal services......................... 110
Printing............................... 1,701
Registration costs..................... 10,992
Interest expense....................... 659
Miscellaneous.......................... 3,686
------------
Total Expenses....................... $ 1,213,074
------------
Net Investment Income.............. $ 1,332,008
------------
REALIZED AND UNREALIZED GAIN ON
INVESTMENTS:
Net realized gain on investment transactions
(identified cost basis)................ $ 10,771,168
Change in unrealized appreciation
of investments......................... 6,810,038
------------
Net realized and unrealized gain
on investments......................... $ 17,581,206
------------
Net increase in net assets
from operations.................... $ 18,913,214
=============
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
WRIGHT SELECTED BLUE CHIP EQUITIES FUND
===============================================================================
Six Months Ended Year Ended
STATEMENTS OF CHANGES IN NET ASSETS June 30, 1996 Dec. 31, 1995
- -----------------------------------------------------------------------------------------------------------------------------
(UNAUDITED)
INCREASE (DECREASE) IN NET ASSETS:
<S> <C> <C>
From operations --
Net investment income...................................................... $ 1,332,008 $ 2,966,203
Net realized gain on investment transactions............................... 10,771,168 10,432,468
Change in unrealized appreciation of investments........................... 6,810,038 40,854,983
-------------- --------------
Increase in net assets from operations................................ $ 18,913,214 $ 54,253,654
-------------- --------------
Undistributed net investment loss included in
price of shares sold and redeemed (Note 1E).................................. $ (36,705) $ (87,633)
-------------- --------------
Distributions to shareholders --
From net investment income................................................. $ (1,317,242) $ (2,612,968)
From net realized gain on investment transactions.......................... (33) (10,432,468)
In excess of net realized gain on investment transactions.................. -- (1,367,084)
-------------- --------------
Total distributions to shareholders................................... $ (1,317,275) $ (14,412,520)
-------------- --------------
Net decrease from Fund share transactions (exclusive of amounts
allocated to net investment income) (Note 4)................................ $ (4,027,920) $ (8,181,348)
-------------- --------------
Net increase in net assets............................................ $ 13,531,314 $ 31,572,153
NET ASSETS:
At beginning of period......................................................... 217,587,944 186,015,791
-------------- --------------
At end of period............................................................... $ 231,119,258 $ 217,587,944
============== ==============
UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED IN NET ASSETS.......................... $ 1,311,971 $ 1,333,910
=============== =============
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
WRIGHT SELECTED BLUE CHIP EQUITIES FUND
==========================================================================================================================
Year Ended December 31,
---------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1996(2) 1995 1994 1993 1992 1991
- ---------------------------------------------------------------------------------------------------------------------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period........ $ 16.830 $ 13.850 $ 14.920 $ 14.790 $ 17.180 $ 13.840
-------- -------- --------- ---------- --------- --------
Income (Loss) from Investment Operations:
Net investment income.................. $ 0.100 $ 0.226 $ 0.233 $ 0.196 $ 0.222 $ 0.267
Net realized and unrealized gain (loss)
on investments....................... 1.340 3.904 (0.763) 0.104 0.498 4.553
-------- -------- ---------- ---------- ---------- ---------
Total income (loss)
from investment operations....... $ 1.440 $ 4.130 $ (0.530) $ 0.300 $ 0.720 $ 4.820
-------- -------- ---------- ---------- ---------- ---------
Less Distributions:
From net investment income............. $ (0.100) $ (0.200) $ (0.180) $ (0.170) $ (0.200) $ (0.250)
From net realized gain on investments.. -- (0.840) (0.360) -- (2.910) (1.230)
In excess of net realized gain
on investments....................... -- (0.110) -- -- -- --
-------- --------- ---------- ----------- ---------- ---------
Total distributions................ $ (0.100) $ (1.150) $ (0.540) $ (0.170) $ (3.110) $(1.480)
-------- --------- ---------- ----------- ---------- ---------
Net asset value, end of period.............. $ 18.170 $ 16.830 $ 13.850 $ 14.920 $ 14.790 $ 17.180
========= ========= ========= ========= ========= =========
Total Return(1)............................. 8.57% 30.34% (3.52%) 2.06% 4.71% 35.98%
Ratios/Supplemental Data:
Net assets, end of period (000 omitted) $231,119 $217,588 $186,016 $ 175,481 $ 152,997 $67,900
Ratio of expenses to average net assets 1.06%(3) 1.04% 1.03% 1.03% 1.02% 1.08%
Ratio of net investment income to average
net assets........................... 1.16%(3) 1.44% 1.57% 1.28% 1.34% 1.67%
Portfolio turnover rate................ 19% 44% 72% 28% 77% 72%
Average commission rate paid(4)........ $0.050 -- -- -- -- --
<FN>
(1) Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each period reported. Dividends and distributions, if any, are assumed to be
invested at the net asset value on the record date.
(2) For the six months ended June 30, 1996.
(3) Annualized.
(4) Average commission rate paid is computed by dividing the total dollar amount
of commissions paid during the fiscal year by the total number of shares
purchased and sold during the fiscal year for which commissions were
charged.
For fiscal years beginning on or after September 1,1995, a Fund is required
to disclose its average commission rate per share for security trades on
which commissions are charged.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
WRIGHT JUNIOR BLUE CHIP EQUITIES FUND (WJBC)
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996 (UNAUDITED)
===============================================================================
Shares Value
- -------------------------------------------------------------------------------
EQUITY INTERESTS -- 97.2%
<S> <C> <C>
CONSTRUCTION -- 2.1%
Fleetwood Enterprises, Inc.......... 12,000 $ 372,000
-----------
DIVERSIFIED -- 5.8%
Carlisle Corp....................... 6,000 $ 318,750
Crane Company....................... 8,500 348,500
Teleflex, Inc....................... 8,000 382,000
-----------
$ 1,049,250
-----------
DRUGS, COSMETICS & HEALTH CARE -- 4.2%
Alberto Culver Company Class A...... 13,000 $ 520,000
Ballard Medical Products............ 13,000 248,625
-----------
$ 768,625
-----------
ELECTRONICS -- 6.4%
Cohu Inc............................ 6,000 $ 121,500
Dallas Semiconductor Corp........... 22,000 398,750
Hadco Corporation*.................. 8,000 172,000
Logicon Inc......................... 10,000 298,750
National Computer System Inc........ 8,000 171,000
-----------
$ 1,162,000
-----------
FINANCIAL -- 14.9%
Allied Group........................ 6,500 $ 282,750
First Commercial Corp............... 15,690 482,468
First Hawaiian Inc.................. 15,000 427,500
Quick and Reilly Group.............. 5,000 162,500
Raymond James Financial Corp........ 20,500 463,813
Star Banc Corp...................... 7,000 471,625
Southern National Corp.............. 12,500 396,875
-----------
$ 2,687,531
-----------
FOOD -- 2.8%
Universal Food's Corporation........ 13,500 $ 497,813
-----------
MACHINERY & EQUIPMENT -- 6.6%
Briggs & Stratton Corp.............. 11,000 $ 452,375
Donaldson Co. Inc................... 16,000 412,000
Lindsay Manufacturing Co............ 8,000 322,000
-----------
$ 1,186,375
-----------
METAL PRODUCTS MANUFACTURERS -- 6.4%
CLARCOR Inc......................... 16,300 $ 403,425
Kaydon Corp......................... 11,300 485,900
Regal Beloit Corp................... 13,500 266,625
-----------
$ 1,155,950
-----------
PRINTING & PUBLISHING -- 11.3%
American Business Products-GA....... 12,000 $ 262,500
Banta Corp.......................... 19,125 482,906
Central Newspapers Cl A............. 7,500 281,250
Harland (John H.) Co................ 18,500 455,563
Lee Enterprises, Inc................ 16,000 378,000
Merrill Corp........................ 7,000 175,000
-----------
$ 2,035,219
-----------
RECREATION -- 8.3%
International Dairy Queen, Inc.*.... 21,400 $ 470,800
Luby's Cafeteria, Inc............... 20,000 470,000
Ryan's Family Steak House*.......... 22,000 203,500
Sturm, Ruger & Company, Inc......... 7,500 348,750
-----------
$ 1,493,050
-----------
RETAILERS -- 13.5%
Casey's General Stores, Inc......... 17,000 $ 337,875
Claire's Stores Inc................. 18,750 517,969
Dress Barn Inc*..................... 33,000 346,500
Hannaford Brothers Co............... 16,000 522,000
One Valley Bancorp.................. 8,000 276,000
Rex Stores Corporation*............. 13,500 207,563
Ruddick Corp........................ 18,600 227,850
-----------
$ 2,435,757
-----------
<PAGE>
TRANSPORTATION -- 2.5%
Expeditors International............ 14,500 $ 449,500
-----------
UTILITIES -- 1.5%
DQE................................. 10,000 $ 275,000
-----------
MISCELLANEOUS -- 10.9%
Crawford & Co....................... 25,000 $ 434,375
Falcon Products Inc................. 16,000 230,000
Lydall Inc*......................... 10,000 220,000
Marshall Industries*................ 15,000 420,000
Stanhome Inc........................ 15,000 397,500
World Fuel Services Corp............ 15,000 271,873
-----------
$ 1,973,748
-----------
TOTAL EQUITY INTERESTS -- 97.2%
(identified cost, $14,405,366) $ 17,541,818
RESERVE FUNDS -- 2.2%
Face Amount
American Express Corp., 5.39%, 7/1/96
(at amortized cost)................$400,000 400,000
-----------
TOTAL INVESTMENTS -- 99.4%
(identified cost, $14,805,366) $ 17,941,818
OTHER ASSETS,
LESS LIABILITIES -- 0.6% 103,466
-----------
NET ASSETS -- 100.0% $ 18,045,284
============
* Non-income-producing security.
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
WRIGHT JUNIOR BLUE CHIP EQUITIES FUND
===============================================================================
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1996 (UNAUDITED)
- -------------------------------------------------------------------------------
ASSETS:
<S> <C>
Investments --
Identified cost........................ $ 14,805,366
Unrealized appreciation................ 3,136,452
------------
Total Value (Note 1A)................ $ 17,941,818
Cash..................................... 70,843
Dividends and interest receivable........ 34,575
Receivable from Investment Adviser....... 7,115
------------
Total Assets........................... $ 18,054,351
------------
LIABILITIES:
Trustee fees payable..................... $ 125
Accrued custodian fee.................... 4,500
Accrued expenses and other liabilities... 4,442
------------
Total Liabilities...................... $ 9,067
------------
NET ASSETS.................................. $ 18,045,284
=============
NET ASSETS CONSIST OF:
Proceeds from sales of shares (including the market
value of securities received in exchange for Fund
shares and shares issued to shareholders in
payment of distributions declared), less cost
of shares reacquired................... $ 10,116,031
Accumulated undistributed net realized gain
on investments (computed on the basis of
identified cost)....................... 4,666,220
Unrealized appreciation of investments (computed
on the basis of identified cost)....... 3,136,452
Undistributed net investment income...... 126,581
------------
Net assets applicable to outstanding shares $ 18,045,284
=============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING............................ 1,574,926
=============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST................. $11.46
=============
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1996 (UNAUDITED)
- -------------------------------------------------------------------------------
INVESTMENT INCOME:
<S> <C>
Income --
Dividends............................... $ 195,502
Interest................................ 6,422
------------
Total Income.......................... $ 201,924
------------
Expenses --
Investment Adviser fee (Note 2)......... $ 59,774
Administrator fee (Note 2).............. 21,735
Compensation of Trustees not affiliated with
the Investment Adviser or Administrator 966
Custodian fee (Note 2).................. 17,803
Transfer and dividend disbursing agent fees 2,097
Shareholder communication expense....... 3,139
Distribution expenses (Note 3).......... 21,736
Audit services.......................... 21,750
Legal services.......................... 110
Registration costs...................... 8,990
Printing................................ 1,349
Interest expense........................ 1,069
Miscellaneous........................... 1,748
------------
Total Expenses........................ $ 162,266
------------
Deduct --
Preliminary reduction of Investment
Adviser Fee........................... $ 5,308
Preliminary reduction of distribution
expenses by Principal Underwriter (Note 3) 21,736
Preliminary allocation of expenses to
Investment Adviser.................... 7,115
Reduction of custodian fee.............. 3,126
------------
Total................................. $ 37,285
------------
Net expenses.......................... $ 124,981
------------
Net investment income............... $ 76,943
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Net realized gain on investment transactions
(identified cost basis)................. $ 2,799,210
Change in unrealized appreciation
of investments.......................... (1,577,371)
------------
Net realized and unrealized gain
on investments.......................... $ 1,221,839
------------
Net increase in net assets
from operations..................... $ 1,298,782
=============
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
WRIGHT JUNIOR BLUE CHIP EQUITIES FUND
=============================================================================================================================
Six Months Ended Year Ended
STATEMENTS OF CHANGES IN NET ASSETS June 30, 1996 Dec. 31, 1995
- -----------------------------------------------------------------------------------------------------------------------------
(UNAUDITED)
INCREASE (DECREASE) IN NET ASSETS:
<S> <C> <C>
From operations --
Net investment income...................................................... $ 76,943 $ 281,420
Net realized gain on investment transactions............................... 2,799,210 2,687,430
Change in unrealized appreciation of investments........................... (1,577,371) 2,980,154
--------------- ------------
Increase in net assets from operations................................ $ 1,298,782 $ 5,949,004
--------------- ------------
Undistributed net investment loss included in
price of shares sold and redeemed (Note 1D).................................. $ (110,009) $ (78,838)
--------------- ------------
Distributions to shareholders --
From net investment income................................................... $ (76,943) $ (266,107)
In excess of net investment income........................................... (14,251) --
From net realized gain on investment transactions............................ (41,082) (2,687,430)
In excess of net realized gain on investment transactions.................... -- (2,913,944)
--------------- ------------
Total distributions to shareholders................................... $ (132,276) $ (5,867,481)
-------------- ------------
Net decrease from Fund share transactions (exclusive of
amounts allocated to net investment income) (Note 4)......................... $ (9,004,671) $ (11,133,267)
-------------- ------------
Net decrease in net assets............................................ $ (7,948,174) $ (11,130,582)
NET ASSETS:
At beginning of period......................................................... 25,993,458 37,124,040
------------ ------------
At end of period............................................................... $ 18,045,284 $ 25,993,458
============== ==============
UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED IN NET ASSETS.......................... $ 126,581 $ 250,841
============== ==============
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT JUNIOR BLUE CHIP EQUITIES FUND
<TABLE>
<CAPTION>
Year Ended December 31,
- ---------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1996(4) 1995 1994 1993 1992 1991
- ---------------------------------------------------------------------------------------------------------------------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period........ $ 10.850 $ 11.000 $ 11.950 $ 11.690 $ 14.720 $ 11.500
-------- -------- -------- -------- -------- --------
Income (Loss) from Investment Operations:
Net investment income(1)............... $ 0.026 $ 0.120 $ 0.101 $ 0.101 $ 0.045 $ 0.072
Net realized and unrealized gain (loss)
on investments....................... 0.654 1.977 (0.431) 0.809 0.315 4.118
-------- -------- ---------- -------- --------- ---------
Total income (loss)
from investment operations....... $ 0.680 $ 2.097 $ (0.330) $ 0.910 $ 0.360 $ 4.190
-------- -------- -------- -------- --------- -------
Less Distributions:
From net investment income............. $ (0.042) $ (0.100) $ (0.100) $ (0.060) $ (0.030) $ (0.070)
In excess of net investment income..... (0.008) -- -- -- -- --
From net realized gain on investments.. (0.020) (1.030) (0.520) (0.590) (3.360) (0.900)
In excess of net realized gain
on investments....................... -- (1.117) -- -- -- --
-------- -------- -------- -------- -------- --------
Total distributions................ $ (0.070) $ (2.247) $ (0.620) $ (0.650) $ (3.390) $ (0.970)
-------- -------- -------- --------- -------- --------
Net asset value, end of period.............. $ 11.460 $ 10.850 $ 11.000 $ 11.950 $ 11.690 $ 14.720
========= ========= ========= ========= ========= =========
Total Return(3)............................. 6.28% 20.51% (2.75%) 7.93% 3.28% 36.98%
Ratios/Supplemental Data:
Net assets, end of period (000 omitted) $18,045 $ 25,993 $ 37,124 $ 68,226 $ 64,635 $ 120,911
Ratio of expenses to average net assets(1) 1.18%(5)(2) 1.17%(2) 1.11% 1.09% 1.07% 1.10%
Ratio of net investment income to average
net assets........................... 0.71%(5)(2) 0.89% 0.91% 0.86% 0.31% 0.52%
Portfolio turnover rate................ 16% 40% 36% 38% 80% 60%
Average commission rate paid(6)........ $0.051 -- -- -- -- --
<FN>
(1)During the period ended June 30, 1996, the Investment Adviser reduced its
fee and was allocated a portion of the operating expenses; in addition, the
Principal Underwriter reduced its fee. During the year ended December 31,
1995, the Principal Underwriter reduced its fee. Had such action not been
undertaken, net investment income per share and the ratios would have been as
follows:
1996(4) 1995
Net investment income per share........ $ 0.014 $ 0.105
========= =========
Ratios (As a percentage of average net assets):
Expenses........................... 1.47%(5) 1.28%
========= =========
Net investment income.............. 0.39%(5) 0.78%
========= =========
(2) Custodian fees were reduced by credits resulting from cash balances the
Trust maintained with the custodian (Note 2). The computation of net
expenses to average daily net assets reported above is computed without
consideration of such credits, in accordance with reporting regulations in
effect beginning in 1995. If these credits were considered, the ratio of net
expenses to average daily net assets would have been reduced to 1.15%.
(3) Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each period reported. Dividends and distributions, if any, are assumed to be
invested at the net asset value on the record date.
(4) For the six months ended June 30, 1996.
(5) Annualized.
(6) Average commission rate paid is computed by dividing the total dollar amount
of commissions paid during the fiscal year by the total number of shares
purchased and sold during the fiscal year for which commissions were
charged.
For fiscal years beginning on or after September 1,1995, a Fund is required
to disclose its average commission rate per share for security trades on
which commissions are charged.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
WRIGHT QUALITY CORE EQUITIES FUND (WQC)
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996 (UNAUDITED)
===============================================================================
Shares Value
- -------------------------------------------------------------------------------
EQUITY INTERESTS -- 98.3%
<S> <C> <C>
APPAREL -- 3.8%
Liz Claiborne....................... 6,700 $ 231,988
Nautica Enterprises Inc............. 14,200 408,250
Nike Inc............................ 3,400 349,350
Russell Corp........................ 6,900 190,613
VF Corp............................. 3,625 216,141
-----------
$ 1,396,342
-----------
AUTOMOTIVE -- 0.9%
Eaton Corp.......................... 3,300 $ 193,463
Echlin Inc.......................... 3,100 117,413
-----------
$ 310,876
-----------
BEVERAGES -- 1.2%
Anheuser Busch...................... 2,900 $ 217,500
Brown-Forman Corp .................. 5,050 202,000
-----------
$ 419,500
-----------
CHEMICALS -- 8.6%
Air Products & Chemicals............ 5,600 $ 323,400
Clorox Corp......................... 2,400 212,700
Cooper Tire & Rubber................ 13,700 304,825
Goodyear Tire & Rubber Co........... 4,800 231,600
Great Lakes Chemical Corp........... 3,100 192,975
Lubrizol Corp....................... 9,500 288,563
Monsanto Co......................... 10,500 341,250
Morton International Inc............ 3,900 145,275
PPG Industries...................... 3,900 190,125
RPM Inc............................. 19,125 298,828
Rohm & Haas Co...................... 2,750 172,563
Sherwin Williams Co................. 4,500 209,250
Sigma Aldrich Corp.................. 3,300 176,550
-----------
$ 3,087,904
-----------
CONSTRUCTION -- 2.4%
Clayton Homes....................... 15,135 $ 302,700
Fleetwood Enterprises, Inc.......... 8,500 263,500
Oakwood Homes Corp.................. 13,600 280,500
-----------
$ 846,700
-----------
DIVERSIFIED -- 4.1%
Crane Company....................... 5,200 $ 213,200
Danaher Corporation................. 5,800 252,300
General Electric Co................. 2,450 211,925
Johnson Controls.................... 2,700 187,650
Lancaster Colony Corp............... 5,332 199,284
National Service Industries......... 5,100 199,538
Teleflex Inc........................ 4,500 214,875
-----------
$ 1,478,772
-----------
DRUGS, COSMETICS & HEALTH CARE -- 3.7%
Alberto Culver Co. Class A.......... 5,700 $ 228,000
Ballard Medical Products............ 13,200 252,450
Bard (C.R.) Inc..................... 5,500 187,000
Bristol-Myers Squibb Co............. 2,700 243,000
Johnson & Johnson................... 4,300 212,850
Lilly (Eli) & Company............... 3,400 221,000
-----------
$ 1,344,300
-----------
ELECTRICAL -- 0.6%
Emerson Electric Co................. 2,400 $ 216,900
-----------
ELECTRONICS -- 6.8%
Cohu Inc............................ 12,000 $ 243,000
Compaq Computer*.................... 4,400 216,700
Dallas Semiconductor Corp........... 15,800 286,375
Hadco Corporation*.................. 9,900 212,850
Hewlett-Packard Inc................. 2,100 209,213
Logicon Inc......................... 10,300 307,713
National Computer System Inc........ 10,000 213,750
Octel Communication................. 10,000 197,500
Raytheon Co......................... 3,900 201,338
Seagate Technology, Inc*............ 5,700 256,500
Sun Microsystems, Inc............... 2,000 117,750
-----------
$ 2,462,689
-----------
<PAGE>
FINANCIAL -- 15.8%
AFLAC, Inc.......................... 6,600 $ 197,175
Allied Group........................ 6,400 278,400
American International Group........ 2,100 207,113
Bancorp Hawaii...................... 5,850 210,600
Commerce Bancshares, Inc............ 5,878 200,570
Compass Bancshares.................. 6,900 225,975
Edwards (A.G.), Inc................. 8,400 227,850
Fifth Third Bancorp................. 3,675 198,450
First Colony Corp................... 8,200 254,200
First Commercial Corp............... 9,921 305,071
First Hawaiian Inc.................. 8,000 228,000
First Security CP................... 11,850 284,400
First Virginia Banks Inc............ 4,900 196,000
Firstar Corporation................. 5,000 230,625
MBIA, Inc........................... 2,850 221,944
Mark Twain Bancshares Inc........... 4,400 162,800
Mercantile Bankshares............... 11,700 298,350
Old Kent Financial Corp............. 8,190 320,434
Quick and Reilly Group.............. 10,300 334,750
Raymond James Financial Corp........ 8,800 199,100
Southern National Corp.............. 7,200 228,600
Southtrust Corp..................... 7,800 219,375
Star Banc Corp...................... 3,000 202,125
SunTrust Banks Inc.................. 5,900 218,300
-----------
$ 5,650,207
-----------
FOOD -- 3.5%
CPC International Inc............... 4,850 $ 349,200
H.J. Heinz Co....................... 9,425 286,284
Hormel (George A.) & Co............. 7,200 192,600
Sara Lee Corp....................... 7,000 226,625
Universal Foods Corp................ 5,200 191,750
-----------
$ 1,246,459
-----------
MACHINERY & EQUIPMENT -- 3.9%
Briggs & Stratton Corp.............. 5,100 $ 209,738
Donaldson Co., Inc.................. 12,000 309,000
Dover Corp.......................... 4,100 189,113
Ingersoll Rand Co................... 5,500 240,625
Lindsay Manufacturing Co............ 6,100 245,525
Pitney-Bowes Inc.................... 4,100 195,775
-----------
$ 1,389,776
-----------
METAL PRODUCTS MANUFACTURERS -- 4.5%
CLARCOR............................. 11,100 $ 274,725
Illinois Tool Works Inc............. 4,600 311,075
Kaydon Corp......................... 5,100 219,300
Regal Beloit Corp................... 15,100 298,225
Snap-On Inc......................... 1,500 71,063
Trimas Corp. Common Stock........... 9,200 215,050
Trinity Industries.................. 6,500 221,000
-----------
$ 1,610,438
-----------
OIL, GAS, COAL & RELATED SERVICES -- 0.6%
Exxon Corp.......................... 2,500 $ 217,188
-----------
PAPER -- 1.6%
Bemis Co............................ 10,400 $ 364,000
Sonoco Products Co.................. 7,155 203,023
-----------
$ 567,023
-----------
PRINTING & PUBLISHING -- 5.9%
American Greetings.................. 5,800 $ 158,775
Banta Corp.......................... 6,750 170,438
Donnelley (R.R.) & Sons............. 8,500 296,438
Gannett Co. Inc..................... 2,850 201,638
Harland (John H.) Co................ 7,900 194,538
Knight-Ridder Inc................... 4,350 315,375
Lee Enterprises, Inc................ 10,700 252,788
Merrill Corp........................ 10,600 265,000
Reynolds & Reynolds, Inc............ 4,600 244,950
-----------
$ 2,099,940
-----------
RECREATION -- 4.8%
Carnival Cruise Class A............. 9,100 262,763
International Dairy Queen, Inc.*.... 9,100 200,200
Luby's Cafeteria, Inc............... 8,800 206,800
McDonald's Corp..................... 6,300 294,525
Ryan's Family Steak House*.......... 25,000 231,250
Sturm, Ruger & Company, Inc......... 5,000 232,500
Wendy's International, Inc.......... 16,600 309,175
-----------
$ 1,737,213
-----------
<PAGE>
RETAILERS -- 11.0%
Albertson's Inc..................... 8,300 $ 343,413
Arbor Drugs Inc..................... 16,800 350,700
Casey's General Stores, Inc......... 8,800 174,900
Claire's Stores Inc................. 9,550 263,819
Consolidated Stores Corp.*.......... 5,900 216,825
Dillard Dept. Stores................ 6,100 222,650
Dress Barn, Inc*.................... 18,800 197,400
Family Dollar Stores................ 14,600 253,675
Hannaford Brothers Co............... 7,000 228,375
The Limited Inc..................... 11,100 238,650
May Department Stores............... 4,000 175,000
Nordstrom Inc....................... 6,500 289,250
Price/Costco Inc*................... 12,000 259,500
Rex Stores Corp.*................... 5,500 84,563
Rite Aid Corp....................... 6,900 205,275
Ross Stores Inc..................... 5,500 191,125
Walgreen Co......................... 7,200 241,200
-----------
$ 3,936,320
-----------
TRANSPORTATION -- 2.9%
Atlantic Southeast Airlines......... 4,900 $ 138,425
Comair Holdings, Inc................ 13,200 356,400
Expeditors International............ 11,000 341,000
Illinois Central Corp............... 7,600 215,650
-----------
$ 1,051,475
-----------
UTILITIES -- COMMUNICATIONS -- 6.0%
AmeriTech Corp...................... 3,600 $ 213,750
Bell Atlantic Corp.................. 3,500 223,125
Century Telephone Enterprises....... 6,500 207,188
DQE Inc............................. 6,150 169,125
Duke Power Company.................. 4,150 212,688
MCI Communications Corp............. 11,100 284,438
NIPSCO Industries, Inc.............. 5,300 213,325
Sprint Corp......................... 5,500 231,000
TECO Energy, Inc.................... 9,000 227,250
Wisconsin Energy Corp............... 6,450 186,244
-----------
$ 2,168,133
-----------
MISCELLANEOUS -- 5.7%
Computer Sciences Corp.*............ 4,500 $ 336,375
Crawford and Co..................... 18,600 323,175
Genuine Parts Co.................... 4,350 199,013
Interpublic Group Cos. Inc.......... 6,600 309,370
Kent Electronics Corp............... 7,700 240,620
Leggett & Platt Inc................. 7,900 219,220
Marshall Industries*................ 7,300 204,400
Stanhome Inc........................ 7,500 198,750
-----------
$ 2,030,923
-----------
TOTAL EQUITY INTERESTS -- 98.3%
(identified cost, $28,605,345) $ 35,269,078
RESERVE FUNDS -- 1.5%
Face Amount
American Express Corp., 5.39%, 7/1/96
(at amorized cost)................$540,000 540,000
-----------
TOTAL INVESTMENTS -- 99.8%
(identified cost, $29,145,345) $ 35,809,078
OTHER ASSETS,
LESS LIABILITIES -- 0.2% 55,994
-----------
NET ASSETS -- 100% $ 35,865,072
============
</TABLE>
* Non-income-producing security.
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
WRIGHT QUALITY CORE EQUITIES FUND
===============================================================================
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1996 (UNAUDITED)
- -------------------------------------------------------------------------------
ASSETS:
<S> <C>
Investments --
Identified cost........................ $ 29,145,345
Unrealized appreciation................ 6,663,733
------------
Total Value (Note 1A)................ $ 35,809,078
Cash..................................... 1,569
Dividends and interest receivable........ 56,296
Receivable from Investment Adviser....... 9,250
------------
Total Assets........................... $ 35,876,193
------------
LIABILITIES:
Trustee fees payable..................... $ 125
Accrued custodian fee.................... 6,430
Accrued expenses and other liabilities... 4,566
------------
Total Liabilities...................... $ 11,121
------------
NET ASSETS.................................. $ 35,865,072
=============
NET ASSETS CONSIST OF:
Proceeds from sales of shares (including
the market value of securities received
in exchange for Fund shares and shares
issued to shareholders in payment of
distributions declared), less cost of
shares reacquired....................... $ 23,637,449
Accumulated undistributed net realized gain
on investments (computed on the basis of
identified cost)....................... 5,786,487
Unrealized appreciation of investments
(computed on the basis of identified cost) 6,663,733
Distributions in excess of net investment
income................................. (222,597)
------------
Net assets applicable to
outstanding shares................... $ 35,865,072
=============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING............................ 2,646,996
=============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST................. $13.55
=============
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1996 (UNAUDITED)
- -------------------------------------------------------------------------------
INVESTMENT INCOME:
<S> <C>
Income --
Dividends.............................. $ 418,467
Interest............................... 16,456
------------
Total Income......................... $ 434,923
------------
Expenses --
Investment Adviser fee (Note 2)........ $ 100,737
Administrator fee (Note 2)............. 44,772
Compensation of Trustees not affiliated with
the Investment Adviser or Administrator 994
Custodian fee (Note 2)................. 22,524
Transfer and dividend disbursing agent fees 4,521
Shareholder communication expense...... 4,056
Distribution expenses (Note 3)......... 44,775
Audit services......................... 21,450
Legal services......................... 110
Registration costs..................... 9,009
Printing............................... 1,578
Miscellaneous.......................... 1,891
------------
Total Expenses....................... $ 256,417
------------
Deduct --
Preliminary reduction of distribution
expenses by Principal Underwriter (Note 3)$ 8,983
Preliminary allocation of expenses to
Investment Adviser..................... 9,250
Reduction of custodian fee.............. 3,513
------------
Total................................. $ 21,746
------------
Net expenses.......................... $ 234,671
------------
Net investment income.............. $ 200,252
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Net realized gain on investment transactions
(identified cost basis)................ $ 5,786,487
Change in unrealized appreciation
of investments......................... (2,582,391)
------------
Net realized and unrealized gain
on investments......................... $ 3,204,096
------------
Net increase in net assets
from operations.................... $ 3,404,348
=============
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
WRIGHT QUALITY CORE EQUITIES FUND
==============================================================================================================================
Six Months Ended Year Ended
STATEMENTS OF CHANGES IN NET ASSETS June 30, 1996 Dec. 31, 1995
- ------------------------------------------------------------------------------------------------------------------------------
(UNAUDITED)
INCREASE (DECREASE) IN NET ASSETS:
<S> <C> <C>
From operations --
Net investment income...................................................... $ 200,252 $ 623,178
Net realized gain on investment transactions............................... 5,786,487 7,097,632
Change in unrealized appreciation of investments........................... (2,582,391) 5,562,948
------------ ------------
Increase in net assets from operations................................ $ 3,404,348 $ 13,283,758
------------ ------------
Undistributed net investment loss included in
price of shares sold and redeemed (Note 1D).................................. $ (43,461) $ (61,558)
------------ ------------
Distributions to shareholders --
From net investment income................................................. $ (200,252) $ (614,587)
In excess of net investment income......................................... (10,110) --
From net realized gain on investment transactions.......................... -- (6,258,626)
------------ ------------
Total distributions to shareholders................................... $ (210,362) $ (6,873,213)
------------ ------------
Net decrease from Fund share transactions (exclusive of
amounts allocated to net investment income) (Note 4)......................... $ (16,419,727) $ (8,299,369)
------------ ------------
Net decrease in net assets............................................ $ (13,269,202) $ (1,950,382)
NET ASSETS:
At beginning of period......................................................... 49,134,274 51,084,656
------------ ------------
At end of period............................................................... $ 35,865,072 $ 49,134,274
============== ==============
DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME
INCLUDED IN NET ASSETS........................................................ $ (222,597) $ (169,026)
============== ==============
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
WRIGHT QUALITY CORE EQUITIES FUND
=============================================================================================================================
Year Ended December 31,
- -----------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1996(4) 1995 1994 1993 1992 1991
- -----------------------------------------------------------------------------------------------------------------------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period........ $ 12.650 $ 11.390 $ 12.720 $ 13.380 $ 14.730 $ 10.760
-------- -------- -------- -------- -------- --------
Income (Loss) from Investment Operations:
Net investment income(1)............... $ 0.024 $ 0.153 $ 0.180 $ 0.176 $ 0.179 $ 0.175
Net realized and unrealized gain (loss)
on investments....................... 0.941 3.107 (0.295) (0.046) 0.951 3.985
-------- -------- -------- -------- -------- --------
Total income (loss)
from investment operations....... $ 0.965 $ 3.260 $ (0.115) $ 0.130 $ 1.130 $ 4.160
-------- -------- -------- -------- -------- --------
Less Distributions:
From net investment income............. $ (0.062) $ (0.160) $ (0.160) $ (0.160) $ (0.160) $ (0.190)
In excess of net investment income..... (0.003) -- -- -- -- --
From net realized gain on investments.. -- (1.840) (1.055) (0.625) (2.320) --
In excess of net realized gains........ -- -- -- (0.005) -- --
-------- -------- -------- -------- -------- --------
Total distributions................ $ (0.065) $ (2.000) $ (1.215) $ (0.790) $ (2.480) $ (0.190)
-------- -------- -------- -------- -------- --------
Net asset value, end of period.............. $ 13.550 $ 12.650 $ 11.390 $ 12.720 $ 13.380 $ 14.730
========= ========= ========= ========= ========= =========
Total Return(3)............................. 7.64% 28.98% (0.70%) 1.00% 8.02% 38.90%
Ratios/Supplemental Data
Net assets, end of period (000 omitted) $35,865 $ 49,134 $ 51,085 $ 88,349 $ 81,674 $ 80,065
Ratio of expenses to average net assets(1) 1.06%(5)(2) 1.07%(2) 0.99% 0.97% 1.01% 1.03%
Ratio of net investment income to average
net assets......................... 0.90%(5)(2) 1.19% 1.46% 1.37% 1.20% 1.34%
Portfolio turnover rate................ 18% 83% 55% 53% 70% 9%
Average commission rate paid(6)........ $0.057 -- -- -- -- --
<FN>
(1)For the period ended June 30, 1996, a portion of the operating expenses was
allocated to the Investment Adviser. In addition, for the period ended June
30, 1996 and for the year ended December 31, 1995, the Principal Underwriter
reduced its fee. Had such action not been undertaken, net investment income
per share and the ratios would have been as follows:
1996(4) 1995
Net investment income per share........ $0.022 $ 0.150
========= =========
Ratios (As a percentage of average net assets):
Expenses........................... 1.13%(5) 1.09%
========= =========
Net investment income.............. 0.80%(5) 1.17%
========= =========
(2) Custodian fees were reduced by credits resulting from cash balances the
Trust maintained with the custodian (Note 2). The computation of net
expenses to average daily net assets reported above is computed without
consideration of such credits, in accordance with reporting regulations in
effect beginning in 1995. If these credits were considered, the ratio of net
expenses to average daily net assets would have been reduced to 1.05%.
(3) Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each period reported. Dividends and distributions, if any, are assumed to be
invested at the net asset value on the record date.
(4) For the six months ended June 30, 1996.
(5) Annualized.
(6) Average commission rate paid is computed by dividing the total dollar amount
of commissions paid during the fiscal year by the total number of shares
purchased and sold during the fiscal year for which commissions were
charged.
For fiscal years beginning on or after September 1,1995, a Fund is required
to disclose its average commission rate per share for security trades on
which commissions are charged.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC)
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996 (UNAUDITED)
===============================================================================
Shares Value
- -------------------------------------------------------------------------------
EQUITY INTERESTS -- 98.7%
AUSTRALIA -- 4.0%
<S> <C> <C>
Broken Hill Proprietary Co. ADR..... 35,860 $ 999,598
Broken Hill Proprietary Co.......... 41,293 570,656
Coles Myer Ltd ADR................. 62,551 1,837,436
Email Ltd........................... 600,760 1,559,342
F.H. Faulding (U.K.)................ 361,671 2,176,213
Lend Lease Corp. Ltd................ 118,894 1,823,564
-----------
$ 8,966,809
-----------
BELGIUM -- 1.7%
Colruyt SA.......................... 5,500 $ 1,869,703
Delhaize Freres & Cie Le Lion SA.... 41,200 2,058,126
-----------
$ 3,927,829
-----------
CANADA -- 3.7%
Bombardier Inc. Class B............. 130,000 $ 1,946,724
British Columbia Telecom............ 95,300 1,852,794
Linamar Corporation................. 99,000 2,316,194
Newbridge Network Corp*............. 32,500 2,128,750
-----------
$ 8,244,462
-----------
DENMARK -- 5.1%
Berendsen Sophus A/S Class B........ 16,630 $ 2,223,866
Carlsburg A/S Pfd Class B........... 34,727 2,043,113
Coloplast B A/S..................... 20,000 1,978,172
Icopal Group........................ 7,550 1,866,900
Novo-Nordisk AS..................... 13,000 1,840,041
Radiometer A/S...................... 26,450 1,641,849
-----------
$ 11,593,941
-----------
FINLAND -- 1.0%
Orion A/S-B......................... 67,300 $ 2,245,485
-----------
FRANCE -- 10.5%
Bongrain SA......................... 3,850 $ 1,862,541
Carrefour Supermarche............... 4,200 2,353,371
Castorama Dubois Inv................ 10,400 2,048,883
Comptoirs Modernes SA............... 5,304 2,392,828
Docks De France SA.................. 11,200 2,284,826
L'Air Liquide SA.................... 10,221 1,805,108
LeGrand SA.......................... 9,700 1,733,826
L'Oreal SA.......................... 5,950 1,975,627
LVMH Moet-Hennessy SA ADR.......... 36,120 1,711,185
Pernod Ricard SA.................... 23,280 1,492,598
SEB Group........................... 12,000 2,088,984
Synthelabo.......................... 22,900 1,935,399
-----------
$ 23,685,176
-----------
GERMANY -- 4.0%
Bayerische Motoren Werke AG......... 3,109 $ 1,802,689
Beiersdorf AG....................... 2,260 2,227,332
Douglas Holdings AG................. 50,000 1,994,087
Dyckerhoff AG....................... 3,950 1,019,941
Heidelberger Zement AG ............. 2,930 2,009,803
-----------
$ 9,053,852
-----------
HONG KONG -- 7.3%
China Light & Power Co. Ltd. ADR.... 311,276 $ 1,411,481
Hang Lung Dev. Co. Ltd. ADR......... 206,400 1,939,850
Hang Seng Bank Ltd. ADR............. 192,195 1,936,711
Hong Kong Aircraft Engineering Co... 741,000 2,225,671
Hong Kong & China Gas Co. ADR......1,126,959 1,797,950
Hong Kong Electric Holdings Ltd. ADR 530,520 1,617,449
Johnson Electric Holdings Ltd....... 897,500 2,017,453
Kowloon Motor Bus Co. (1933) Ltd.... 979,200 1,593,902
Swire Pacific Ltd. ADR.............. 214,400 1,834,985
-----------
$ 16,375,452
-----------
IRELAND -- 1.6%
Fyffes PLC.......................... 922,000 $ 1,518,267
Greencore Group PLC................. 394,000 2,050,465
-----------
$ 3,568,732
-----------
ITALY -- 0.7%
Sirti SPA........................... 241,000 $ 1,559,812
-----------
<PAGE>
JAPAN -- 9.9%
Chudenko Corp....................... 48,300 $ 1,755,562
Daiichi Pharmaceutical Co., Ltd..... 98,000 1,512,511
Ito-Yokado Co., Ltd. ADR............ 6,750 1,626,750
Kurita Water Industries Ltd......... 72,600 1,770,247
Kyodo Printing Co. Ltd.............. 138,000 1,625,753
National House Industrial Co., Ltd.. 90,000 1,405,479
Ono Pharmaceutical Co. Ltd.......... 49,000 1,687,032
Santen Pharmaceutical Co., Ltd...... 72,600 1,690,685
Seven Eleven Japan Co., Ltd......... 30,580 1,952,093
Taisho Pharmaceutical Co., Ltd...... 75,000 1,623,288
Yamanouchi Pharmaceutical Co., Ltd.. 92,000 1,999,635
York-Benimaru Co., Ltd.............. 42,000 1,672,329
Yurtec Corp......................... 109,950 1,937,932
-----------
$ 22,259,296
-----------
MALAYSIA -- 4.5%
Amsteel Corp. Berhad................2,298,000 $ 1,732,253
Genting Berhad...................... 200,000 1,563,753
Guinness Anchor Berhad.............. 782,000 1,614,796
Hong Leong Indus Berhad............. 363,000 1,761,147
Perlis Plantations Berhad........... 440,000 1,693,665
Sime Darby Berhad................... 664,200 1,837,602
-----------
$ 10,203,216
-----------
MEXICO -- 2.1%
Cifra S.A. ADR*.................... 895,000 $ 1,291,753
Kimberly Clark De Mexico ADR........ 49,900 1,816,994
Telefonos de Mexico ADR............ 48,400 1,621,400
-----------
$ 4,730,147
-----------
NETHERLANDS -- 8.4%
CSM N.V............................ 37,318 $ 1,788,500
Elsevier Dutch Certificates......... 120,900 1,834,609
Getronics N.V....................... 101,084 2,238,678
Hagemeyer N.V....................... 30,153 2,148,233
Heineken N.V........................ 8,275 1,849,124
Koninklijke Ahold N.V............... 34,819 1,887,015
Nutricia............................ 20,166 2,132,624
NETHERLANDS -- CONTINUED
Polygram............................ 28,700 $ 1,694,961
Unilever N.V........................ 12,900 1,866,827
Verenigde Neder. Uitgeversbedrijven. 101,000 1,568,139
-----------
$ 19,008,710
-----------
NEW ZEALAND -- 0.8%
Wilson & Horton..................... 266,000 $ 1,771,436
-----------
SINGAPORE -- 2.3%
Asia Pacific Breweries Ltd.......... 272,000 $ 1,676,871
Cycle & Carriage Ltd. Ord........... 159,000 1,701,318
Singapore Press Holdings Ltd........ 94,200 1,849,022
-----------
$ 5,227,211
-----------
SOUTH AFRICA -- 1.5%
South African Breweries Ltd......... 58,803 $ 1,724,508
Tiger Oats Ltd...................... 118,000 1,655,352
-----------
$ 3,379,860
-----------
SPAIN -- 2.6%
Banco Popular Espanol............... 11,600 $ 2,067,533
Empresa Nac de Electicidad SA....... 30,600 1,907,948
Repsol S.A.......................... 55,740 1,937,818
-----------
$ 5,913,299
-----------
SWEDEN -- 3.6%
AGA AB B Free....................... 110,500 $ 1,900,315
Astra AB Class B.................... 43,500 1,896,468
Gullspangs Kraft - "B" Free......... 113,000 1,909,216
Hennes & Mauritz AB Class B........ 25,700 2,384,332
-----------
$ 8,090,331
-----------
SWITZERLAND -- 4.6%
Nestle SA ADR....................... 34,600 $ 1,975,141
Roche Holding AG - Genussch......... 230 1,752,774
Sandoz AG........................... 1,900 2,170,778
SMH-Sch. Ges. Fuer AG............... 14,750 2,302,295
Societe Generale de Surv. Hold. SA.. 915 2,187,964
-----------
$ 10,388,952
-----------
<PAGE>
UNITED KINGDOM -- 18.8%
Allied Colloids Group PLC........... 920,000 $ 1,872,278
BTR*................................ 4,178 1,266
BTR Ltd. PLC........................ 359,908 1,414,566
BTR Ltd.*........................... 3,287 383
Cable & Wireless PLC ADR........... 74,300 1,467,425
Christian Salvesen PLC.............. 462,200 1,816,610
Grand Metropolitan PLC ADR......... 55,900 1,495,325
Halma PLC........................... 599,333 1,638,672
Johnson Matthey Public Ltd.......... 225,200 2,169,059
Kwik Save Group PLC................. 241,000 1,684,771
LaPorte PLC......................... 167,070 1,772,680
Marks & Spencer PLC................. 60,700 443,670
Marks & Spencer PLC ADR ............ 30,700 1,346,613
Morrison (Wm.) Supermarket.......... 686,000 1,657,165
Pearson PLC......................... 162,076 1,671,853
Polypipe PLC........................ 625,000 1,951,584
Powerscreen Int'l................... 288,100 2,049,840
Reckitt & Colman PLC................ 160,141 1,684,234
Sainsbury (J.) PLC.................. 267,292 1,577,905
Scapa Group PLC..................... 481,873 1,774,158
Securicor Group -A-*................ 411,112 1,673,296
Seibe PLC........................... 145,532 2,068,668
Smith & Nephew PLC.................. 686,730 2,189,679
Smiths Industries PLC............... 180,100 1,972,487
Tesco PLC........................... 417,060 1,911,313
Weir Group PLC...................... 407,700 1,570,738
Wolseley PLC........................ 250,547 1,763,185
-----------
$ 42,639,423
-----------
TOTAL EQUITY INTERESTS -- 98.7%
(identified cost, $174,937,450) $ 222,833,431
RESERVE FUND -- 0.4%
Face Amount
American Express Corp., 5.39%, 7/1/96
(at amortized cost)...............$975,000 975,000
-----------
TOTAL INVESTMENTS -- 99.1%
(identified cost, $175,912,450) $223,808,431
OTHER ASSETS,
LESS LIABILITIES -- 0.9% 2,021,481
-----------
NET ASSETS -- 100% $225,829,912
============
* Non-income-producing security.
ADR: American Depository Receipts
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND
===============================================================================
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1996 (UNAUDITED)
- -------------------------------------------------------------------------------
ASSETS:
<S> <C>
Investments --
Identified cost........................ $175,912,450
Unrealized appreciation................ 47,895,981
------------
Total value (Note 1A)................ $223,808,431
Cash..............................32,239
Receivable for investments sold.......... 904,521
Dividends and interest receivable........ 664,378
Receivable for open forward foreign currency
exchange contracts..................... 229
Receivable for refundable foreign taxes
withheld............................... 481,237
Receivable for fund shares sold.......... 6,550
------------
Total Assets........................... $225,897,585
------------
LIABILITIES:
Trustees fees payable.................... $ 125
Custodian fee payable (Note 1C)........... 53,873
Accrued expenses and other liabilities... 13,675
------------
Total Liabilities...................... $ 67,673
------------
NET ASSETS.................................. $225,829,912
=============
NET ASSETS CONSIST OF:
Proceeds from sales of shares (including the market
value of securities received in exchange for Fund
shares and shares issued to shareholders in
payment of distributions declared), less cost of
shares reacquired........................ $163,049,704
Accumulated undistributed net realized gain
on investments and foreign currency
(computed on the basis of identified cost) 12,417,709
Unrealized appreciation of investments and
translation of assets and liabilities in
foreign currency (computed on the basis of
identified cost)......................... 47,902,087
Undistributed net investment income......... 2,460,412
------------
Net assets applicable to outstanding
shares.................................. $225,829,912
=============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING.............................. 13,806,389
=============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST................... $16.36
=============
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1996 (UNAUDITED)
- -------------------------------------------------------------------------------
INVESTMENT INCOME:
Income --
<S> <C>
Dividends.............................. $ 3,289,189
Interest............................... 141,272
Less: Foreign taxes................... (455,176)
------------
Total Income......................... $ 2,975,285
------------
Expenses --
Investment Adviser fee (Note 2)........ $ 894,633
Administrator fee (Note 2)............. 139,072
Compensation of Trustees not affiliated with
the Investment Adviser or Administrator 715
Custodian fee (Note 2)................. 166,222
Transfer and dividend disbursing agent fees 23,443
Shareholder communication expense...... 18,380
Distribution expenses (Note 3)......... 231,523
Audit services......................... 21,950
Legal services......................... 71
Registration costs..................... 10,431
Printing............................... 5,042
Interest expense....................... 11,904
Miscellaneous.......................... 4,856
------------
Total Expenses....................... $ 1,528,242
------------
Net Investment Income.............. $ 1,447,043
------------
REALIZED AND UNREALIZED GAIN ON
INVESTMENTS:
Net realized gain on investment and foreign
currency transactions (identified
cost basis)............................ $ 15,635,640
Change in unrealized appreciation
of investments and translation of assets
and liabilities in foreign currencies.. 6,943,384
------------
Net realized and unrealized gain on
investments and foreign currency... $ 22,579,024
------------
Net increase in net assets
from operations.................... $ 24,026,067
=============
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND
=============================================================================================================================
Six Months Ended Year Ended
STATEMENTS OF CHANGES IN NET ASSETS June 30, 1996 Dec. 31, 1995
- -----------------------------------------------------------------------------------------------------------------------------
(UNAUDITED)
INCREASE (DECREASE) IN NET ASSETS:
From operations --
<S> <C> <C>
Net investment income........................................................ $ 1,447,043 $ 2,167,787
Net realized gain (loss) on investment and foreign currency transactions..... 15,635,640 (650,735)
Change in unrealized appreciation of investments and translation
of assets and liabilities in foreign currencies............................ 6,943,384 25,147,505
------------ ------------
Increase in net assets from operations................................ $ 24,026,067 $ 26,664,557
------------ ------------
Undistributed net investment income (loss) included in
price of shares sold and redeemed (Note 1D).................................. $ (344,572) $ 182,554
------------ ------------
Distributions to shareholders from net investment income....................... $ -- $ (1,602,294)
------------ ------------
Net increase (decrease) from fund share transactions
(exclusive of amounts allocated to net investment income) (Note 4)........... $ (35,027,529) $ 11,699,493
------------ ------------
Net increase (decrease) in net assets................................. $ (11,346,034) $ 36,944,310
NET ASSETS:
At beginning of period......................................................... 237,175,946 200,231,636
------------ ------------
At end of period............................................................... $ 225,829,912 $ 237,175,946
============== ==============
UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED IN NET ASSETS.......................... $ 2,460,412 $ 1,357,941
============== ==============
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND
=============================================================================================================================
Year Ended December 31,
- -----------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1996(2) 1995 1994 1993 1992 1991
- -----------------------------------------------------------------------------------------------------------------------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period........ $ 14.770 $ 13.090 $ 13.410 $ 10.520 $ 11.040 $ 9.520
--------- --------- --------- --------- --------- ---------
Income (loss) from Investment Operations:
Net investment income.................. $ 0.094 $ 0.142 $ 0.127 $ 0.107 $ 0.094 $ 0.115
Net realized and unrealized gain (loss)
on investments..................... 1.496 1.638 (0.347) 2.853 (0.524) 1.515
--------- --------- --------- --------- --------- ---------
Total income (loss)
from investment operations......... $ 1.590 $ 1.780 $ (0.220) $ 2.960 $ (0.430) $ 1.630
--------- --------- --------- --------- --------- ---------
Less Distributions:
From net investment income............. $ 0.000 $ (0.100) $ (0.100) $ (0.070) $ (0.090) $ (0.110)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period.............. $ 16.360 $ 14.770 $ 13.090 $ 13.410 $ 10.520 $ 11.040
========== ========== ========== ========== ========== ==========
Total Return(1)............................. 10.77% 13.61% (1.64%) 28.22% (3.94%) 17.21%
Ratios/Supplemental Data
Net assets, end of period (000 omitted) $225,830 $237,176 $200,232 $100,071 $ 74,409 $ 51,802
Ratio of expenses to average daily net
assets............................. 1.32%(3) 1.29% 1.31% 1.46% 1.51% 1.67%
Ratio of net investment income to average
daily net assets................... 1.25%(3) 0.99% 1.00% 0.67% 0.81% 1.12%
Portfolio Turnover Rate................ 11% 12% 12% 30% 15% 23%
Average commission rate paid(4)........ $0.063 -- -- -- -- --
<FN>
(1) Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each period reported. Dividends and distributions, if any, are assumed to be
invested at the net asset value on the record date.
(2) For the six months ended June 30, 1996.
(3) Annualized.
(4) Average commission rate paid is computed by dividing the total dollar amount
of commissions paid during the fiscal year by the total number of shares
purchased and sold during the fiscal year for which commissions were
charged.
For fiscal years beginning on or after September 1,1995, a Fund is required
to disclose its average commission rate per share for security trades on
which commissions are charged.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
THE WRIGHT MANAGED EQUITY TRUST
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
(1) SIGNIFICANT ACCOUNTING POLICIES
The Wright Managed Equity Trust (the Trust), issuer of Wright Selected Blue
Chip Equities Fund (WBC) series, Wright Junior Blue Chip Equities Fund (WJBC)
series, Wright Quality Core Equities Fund (WQC) series, and Wright International
Blue Chip Equities Fund (WIBC) series, is registered under the Investment
Company Act of 1940, as amended, as a diversified, open-end, management
investment company. The following is a summary of significant accounting
policies consistently followed by the Trust in the preparation of its financial
statements. The policies are in conformity with generally accepted accounting
principles.
A. Investment Valuations -- Securities listed on securities exchanges or in
the NASDAQ National Market are valued at closing sale prices. Unlisted or
listed securities for which closing sale prices are not available are
valued at the mean between the latest bid and asked prices. Short-term
obligations maturing in sixty days or less are valued at amortized cost,
which approximates value. Securities for which market quotations are
unavailable are appraised at their fair value as determined in good faith
by or at the direction of the Trustees.
B. Foreign Currency Translation -- Investment security valuations, other
assets, and liabilities initially expressed in foreign currencies are
translated each business day into U.S. dollars based upon current exchange
rates. Purchases and sales of foreign investment securities and income and
expenses are translated into U.S. dollars based upon currency exchange
rates prevailing on the respective dates of such transactions.
C. Expense Reduction -- The Fund has entered into an arrangement with its
custodian agent whereby interest earned on uninvested cash balances are
used to offset custody fees. All significant reductions are reported as
a reduction of expenses in the Statement of Operations.
D. Federal Taxes -- The Trust's policy is to comply with the provisions of
the Internal Revenue Code (the Code) available to regulated investment
companies and distribute to shareholders each year all of its taxable
income, including any net realized gain on investments. Accordingly,
no provision for federal income or excise tax is necessary. Withholding
taxes on foreign dividends have been provided for in accordance with the
Trust's understanding of the applicable country's tax rules and rates. At
December 31, 1995, WIBC, for federal income tax purposes, had a capital
loss carryover of $3,217,931, which will reduce taxable income arising
from future net realized gain on investments, if any, to the extent
permitted by the Code, and thus will reduce the amount of the
distribution to shareholders which would otherwise be necessary to relieve
WIBC of any liability for federal income or excise tax. Pursuant to the
Code, such capital loss carryover will expire as follows:
1999 2000 2001 2003
------------------------------------------------------
$924,334 $1,404,904 $250,866 $637,827
------------------------------------------------------
E. Equalization -- The Funds follow the accounting practice known as
equalization by which a portion of the proceeds from sales and costs of
reacquisitions of Fund shares, equivalent on a per-share basis to the
amount of undistributed net investment income on the date of the
transaction, is credited or charged to undistributed net investment income.
As a result, undistributed net investment income per share is unaffected by
sales or reacquisitions of Fund shares.
F. Distributions -- The Trust requires that differences in the recognition
or classification of income between the financial statements and tax
earnings and profits which result only in temporary overdistributions for
financial statement purposes, are classified as distributions in
excess of net investment
<PAGE>
income or accumulated net realized gains.
Distributions in excess of tax basis earnings and profits are reported in
the financial statements as a return of capital. Permanent differences
between book and tax accounting for certain items may result in
reclassification of these items. The tax treatment of distributions for
the calender year will be reported to shareholders prior to February 1,
1997 and will be based on tax accounting methods which may differ from
amounts determined for financial statements purposes.
G. Other -- Investment transactions are accounted for on the date the
investments are purchased or sold. Dividend income and distributions to
shareholders are recorded on the ex-dividend date. Interest income is
recorded on the accrual basis. However, if the ex-dividend date has passed,
certain dividends from foreign securities are recorded as the Fund is
informed of the ex-dividend date.
H. Interim Financial Information -- The interim financial statements relating
to June 30, 1996 and for the period then ended have not been audited by
independent certified public accountants, but in the opinion of the Trust's
management, reflect all adjustments, consisting only of normal recurring
adjustments, necessary for the fair presentation of the financial
statements.
I. Use of Estimates -- The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported
amounts of revenue and expense during the reporting period. Actual results
could differ from those estimates.
(2) INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The Trust has engaged Wright Investors' Service (Wright) to perform
investment management, investment advisory, and other services. For its
services, Wright is compensated based upon a percentage of average daily net
assets which rate is adjusted as average daily net assets exceed certain levels.
For the period ended June 30,1996, the effective annual rate was 0.62% for WBC,
0.55% for WJBC, 0.45% for WQC, and 0.77% for WIBC. To enhance the net income of
the Funds, Wright made a preliminary reduction of its investment adviser fee by
$5,308 for the benefit of WJBC. The Trust also has engaged Eaton Vance
Management (Eaton Vance) to act as administrator of the Trust. Under the
Administration Agreement, Eaton Vance is responsible for managing the business
affairs of the Trust and is compensated based upon a percentage of average daily
net assets which rate is reduced as average daily net assets exceed certain
levels. For the period ended June 30, 1996, the effective annual rate was 0.12%
for WBC, 0.20% for WJBC, 0.20% for WQC, and 0.12% for WIBC. Certain of the
Trustees and officers of the Trust are Trustees or officers of the above
organizations. Except as to Trustees of the Trust who are not affiliated with
Eaton Vance or Wright, Trustees and officers receive remuneration for their
services to the Trust out of the fees paid to Eaton Vance and Wright.
(3) DISTRIBUTION EXPENSES
The Trustees have adopted a Distribution Plan (the Plan) pursuant to Rule
12b-1 of the Investment Company Act of 1940. The Plan provides that each of the
Funds will pay Wright Investors' Service Distributors, Inc. (Principal
Underwriter), a subsidiary of Wright Investors' Service, an annual rate of 2/10
of 1% of each Fund's average daily net assets for activities primarily intended
to result in the sale of each Fund's shares. To enhance the net income of WJBC
and WQC, the Principal Underwriter made a preliminary reduction of its fee by
$21,736 and $8,983, respectively.
(4) SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number
of full and fractional shares of beneficial interest (without par value).
Transactions in Fund shares were as follows:
<PAGE>
<TABLE>
<CAPTION>
WRIGHT SELECTED BLUE CHIP EQUITIES FUND --
<S> <C> <C> <C> <C>
Sold ............................................... 2,263,100 $ 38,743,177 4,266,308 $ 65,320,088
Issued to shareholders in payment
of distributions declared.......................... 77,791 1,341,351 700,517 11,141,024
Reacquired........................................... (2,552,430) (44,112,448) (5,467,216) (84,642,460)
---------- --------------- ----------- -------------
Net decrease................................... (211,539) $ (4,027,920) (500,391) $ (8,181,348)
=========== =============== =========== ==============
WRIGHT JUNIOR BLUE CHIP EQUITIES FUND --
Sold ............................................... 47,527 $ 522,434 225,623 $ 2,466,377
Issued to shareholders in payment
of distributions declared.......................... 18,088 197,517 444,836 4,715,097
Reacquired........................................... (885,855) (9,724,622) (1,650,724) (18,314,741)
---------- -------------- ----------- -------------
Net decrease................................... (820,240) $ (9,004,671) (980,265) $ (11,133,267)
=========== =============== ============ ==============
WRIGHT QUALITY CORE EQUITIES FUND --
Sold ............................................... 209,008 $ 2,731,131 655,665 $ 8,101,383
Issued to shareholders in payment
of distributions declared.......................... 15,851 209,923 522,768 6,525,442
Reacquired........................................... (1,462,778) (19,360,781) (1,778,830) (22,926,194)
----------- -------------- ----------- -------------
Net decrease................................... (1,237,919) $ (16,419,727) (600,397) $ (8,299,369)
=========== =============== =========== ===============
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND --
Sold ............................................... 1,853,998 $ 28,425,056 4,605,546 $ 64,343,250
Issued to shareholders in payment
of distributions declared.......................... 2,016 29,037 78,962 1,136,990
Reacquired........................................... (4,106,861) (63,481,622) (3,919,612) (53,780,747)
---------- ------------- ----------- -------------
Net increase (decrease)........................ (2,250,847) $ (35,027,529) 764,896 $ 11,699,493
=========== =============== =========== ===============
</TABLE>
(5) INVESTMENT TRANSACTIONS
Purchases and sales of investments, other than U.S. Government securities
and short-term obligations and redemptions in kind, for the period ended June
30,1996, were as follows:
<TABLE>
<CAPTION>
Wright Selected Wright Junior Wright Wright International
Blue Chip Blue Chip Quality Core Blue Chip
Equities Fund Equities Fund Equities Fund Equities Fund
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Purchases......................................... $ 49,154,020 $ 3,345,576 $ 7,866,088 $ 24,463,213
============ ============ ============ ============
Sales............................................. $ 41,954,226 $ 10,092,195 $ 10,817,888 $ 38,689,621
============ ============ ============ ============
Redemptions in Kind (at Value).................... $ 439,063 $ -- $ 8,079,518 $ --
============ ============ ============ ============
In addition, the redemption in kind transactions resulted in realized gains of $86,924 and $2,248,668 for
WBC and WQC, respectively.
</TABLE>
<PAGE>
(6) FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES
The cost and unrealized appreciation (depreciation) of the investment
securities owned at June 30, 1996, as computed on a federal income tax basis,
are as follows:
<TABLE>
<CAPTION>
Wright Selected Wright Junior Wright Wright International
Blue Chip Blue Chip Quality Core Blue Chip
Equities Fund Equities Fund Equities Fund Equities Fund
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Aggregate cost.................................... $ 180,985,027 $ 14,805,366 $ 29,145,345 $175,912,450
============ ============ ============ ============
Gross unrealized appreciation..................... $ 52,306,385 $ 3,563,815 $ 7,256,939 $ 53,019,066
Gross unrealized depreciation..................... (2,602,669) (427,363) (593,206) (5,123,085)
------------- ------------- ------------- -------------
Net unrealized appreciation....................... $ 49,703,716 $ 3,136,452 $ 6,663,733 $ 47,895,981
============ ============ ============ ============
</TABLE>
(7) FINANCIAL INSTRUMENTS
The Trust may trade in financial instruments with off-balance sheet risk in
the normal course of its investing activities to assist in managing exposure to
various market risks. These financial instruments include written options,
forward foreign currency exchange contracts, and futures contracts and may
involve, to a varying degree, elements of risk in excess of the amounts
recognized for financial statement purposes. The Funds hold no such instruments
at June 30, 1996.
(8) LINE OF CREDIT
The Trust participates with other funds managed by Wright in a line of
credit with a bank which allows the Funds to borrow up to $20,000,000
collectively. The line of credit consists of a $10,000,000 committed facility
and a $10,000,000 uncommitted facility. Interest is charged to each fund based
on its borrowings, at a rate equal to the bank's base rate. In addition, the
funds pay a prorated commitment fee computed at a rate of 1/4 of 1% of
$10,000,000 less the value of any borrowing. The Trust did not have any
borrowings as of June 30, 1996.
(9) RISKS ASSOCIATED WITH FOREIGN INVESTMENTS
WIBC's investing in securities issued by companies whose principal business
activities are outside the United States may involve significant risks not
present in domestic investments. For example, there is generally less publicly
available information about foreign companies, particularly those not subject to
the disclosure and reporting requirements of the U.S. securities laws. Foreign
issuers are generally not bound by uniform accounting, auditing, and financial
reporting requirements and standards of practice comparable to those applicable
to domestic issuers. Investments in foreign securities also involve the risk of
possible adverse changes in investment or exchange control regulations,
expropriation or confiscatory taxation, limitation on the removal of funds or
other assets of WIBC, political or financial instability or diplomatic and other
developments which could affect such investments. Foreign stock markets, while
growing in volume and sophistication, are generally not as developed as those in
the United States, and securities of some foreign issuers (particularly those
located in developing countries) may be less liquid and more volatile than
securities of comparable U.S. companies. In general, there is less overall
governmental supervision and regulation of foreign securities markets,
broker-dealers, and issuers than in the United States.
Settlement of securities transactions in foreign countries may be delayed
and is generally less frequent than in the United States, which could affect the
liquidity of WIBC's assets. WIBC may be unable to sell securities where the
registration process is incomplete and may experience delays in receipt of
dividends.
<PAGE>
<TABLE>
<CAPTION>
WRIGHT U.S. TREASURY MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996 (UNAUDITED)
===============================================================================
Face Interest Maturity
Amount Issuer Rate Date Value
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 200,000 U. S. Treasury Bills 4.960% 07/25/96 $ 199,333
2,000,000 U. S. Treasury Bills 4.950% 07/25/96 1,993,400
2,000,000 U. S. Treasury Bills 4.960% 07/25/96 1,993,387
1,400,000 U. S. Treasury Bills 5.000% 08/22/96 1,389,889
2,000,000 U. S. Treasury Bills 4.985% 08/22/96 1,985,599
1,700,000 U. S. Treasury Bills 5.045% 09/19/96 1,680,941
500,000 U. S. Treasury Bills 5.040% 09/19/96 494,400
600,000 U. S. Treasury Bills 5.120% 09/19/96 593,173
100,000 U. S. Treasury Bills 4.970% 10/17/96 98,509
400,000 U. S. Treasury Bills 5.020% 10/17/96 393,976
200,000 U. S. Treasury Bills 5.010% 10/17/96 196,994
1,000,000 U. S. Treasury Bills 5.060% 10/17/96 984,820
800,000 U. S. Treasury Bills 5.080% 11/14/96 784,647
900,000 U. S. Treasury Bills 5.150% 11/14/96 882,490
1,700,000 U. S. Treasury Bills 5.100% 12/12/96 1,660,503
700,000 U. S. Treasury Bills 5.190% 12/12/96 683,450
1,100,000 U. S. Treasury Bills 5.090% 01/09/97 1,070,139
1,000,000 U. S. Treasury Bills 5.310% 01/09/97 971,680
1,600,000 U. S. Treasury Bills 5.180% 02/06/97 1,549,351
3,000,000 U. S. Treasury Bills 4.975% 07/05/96 2,998,341
1,600,000 U. S. Treasury Bills 4.900% 07/18/96 1,795,801
3,200,000 U. S. Treasury Bills 4.960% 08/01/96 3,186,333
1,100,000 U. S. Treasury Bills 4.960% 08/08/96 1,094,241
300,000 U. S. Treasury Bills 4.980% 08/08/96 298,423
2,000,000 U. S. Treasury Bills 4.960% 08/08/96 1,989,529
2,000,000 U. S. Treasury Bills 4.990% 08/15/96 1,987,525
100,000 U. S. Treasury Bills 5.000% 08/29/96 99,181
2,000,000 U. S. Treasury Bills 5.040% 08/29/96 1,983,480
1,000,000 U. S. Treasury Bills 5.000% 09/25/96 990,833
2,600,000 U. S. Treasury Bills 5.070% 09/05/96 2,575,833
2,500,000 U. S. Treasury Bills 5.035% 10/03/96 2,467,132
500,000 U. S. Treasury Bills 5.030% 10/03/96 493,433
1,100,000 U. S. Treasury Bills 5.100% 10/10/96 1,084,261
1,100,000 U. S. Treasury Bills 5.060% 10/10/96 1,084,384
2,100,000 U. S. Treasury Bills 5.130% 10/31/96 2,063,492
1,600,000 U. S. Treasury Bills 5.155% 11/22/96 1,567,237
300,000 U. S. Treasury Bills 5.180% 11/21/96 293,827
2,100,000 U. S. Treasury Bills 5.210% 11/29/96 2,054,109
----------
TOTAL INVESTMENTS
AT AMORTIZED COST -- 100.1% $51,311,898
Other Assets, less Liabilities -- (0.1%) (46,630)
------------
Net Assets -- 100.0% $51,265,268
============
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
WRIGHT U.S. TREASURY MONEY MARKET FUND
===============================================================================
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1996 (UNAUDITED)
- -------------------------------------------------------------------------------
ASSETS:
<S> <C>
Investments, at amortized cost and value
(Note 1A).............................. $ 51,311,898
Cash..................................... 137,447
Receivable from Investment Adviser....... 23,900
------------
Total Assets........................... $ 51,473,245
LIABILITIES:
Payable for dividend disbursing agent.... $ 193,737
Custodian fee payable.................... 6,800
Trustees' fees payable................... 83
Accrued expenses and other liabilities... 7,357
------------
Total Liabilities...................... $ 207,977
------------
NET ASSETS (Consisting of paid-in capital).. $ 51,265,268
=============
Net Asset Value, Offering Price, and Redemption
Price Per Share ($51,265,268 / 51,265,268
shares of beneficial interest outstanding) $1.00
=============
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1996 (UNAUDITED)
- -------------------------------------------------------------------------------
INVESTMENT INCOME:
<S> <C>
Interest income (Note 1B)................ $ 1,393,826
------------
Expenses --
Investment Adviser fee (Note 3)........ $ 93,724
Administrator fee (Note 3)............. 19,073
Compensation of Trustees not affiliated with
the Investment Adviser or Administrator 640
Custodian fee (Note 3)................. 21,504
Audit and legal........................ 17,390
Registration costs..................... 34,019
Transfer & dividend disbursing agent fees 9,460
Shareholder communication expense...... 4,751
Amortization of organization costs(Note 1G) 5,440
Printing............................... 2,310
Miscellaneous.......................... 3,174
------------
Total expenses....................... $ 211,485
------------
Deduct --
Preliminary reduction of Investment Adviser
fee (Note 3)....................... $ 61,813
Reduction of Custodian fee (Note 3).. 3,752
Preliminary allocation of expenses to
Investment Adviser.................. 23,900
------------
Total deductions................... $ 89,465
------------
Net expenses........................... $ 122,020
------------
Net investment income.................. $ 1,271,806
=============
</TABLE>
===============================================================================
<TABLE>
<CAPTION>
Six Months Ended Year Ended
STATEMENTS OF CHANGES IN NET ASSETS June 30, 1996 Dec. 31, 1995
- -----------------------------------------------------------------------------------------------------------------------------
(UNAUDITED)
<S> <C> <C>
FROM OPERATIONS:
Net investment income.................................................................. $ 1,271,806 $ 2,423,432
------------ ------------
DIVIDENDS DECLARED FROM NET INVESTMENT INCOME (Note 2).................................... $ (1,271,806) $ (2,423,432)
------------ ------------
FROM FUND SHARE (PRINCIPAL) TRANSACTIONS AT NET ASSET VALUE OF $1.00 PER SHARE
(Note 4):
Proceeds from sale of shares........................................................... $118,060,408 $217,876,175
Net asset value of shares issued to shareholders in payment of dividends declared...... 624,392 1,823,063
Cost of shares reacquired.............................................................. (113,308,479) (242,687,133)
------------ ------------
Increase (decrease) in net assets from Fund share transactions....................... $ 5,376,321 $(22,987,895)
------------ ------------
Net increase (decrease) in net assets.............................................. $ 5,376,321 $(22,987,895)
NET ASSETS:
Beginning of period.................................................................... 45,888,947 68,876,842
------------ ------------
End of period.......................................................................... $ 51,265,268 $ 45,888,947
============= =============
See notes to financial statements.
</TABLE>
<PAGE>
WRIGHT U.S. TREASURY MONEY MARKET FUND
===============================================================================
<TABLE>
<CAPTION>
Year Ended December 31,
- ---------------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1996(6) 1995 1994 1993 1992 1991(2)
- ---------------------------------------------------------------------------------------------------------------------------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value -- beginning of period......... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Income from Investment Operations:
Net investment income(1) .................. 0.02342 0.05212 0.03494 0.02503 0.03221 0.02526
Less Distributions:
From net investment income.................. (0.02342) (0.05212) (0.03494) (0.02503) (0.03221) (0.02526)
--------- --------- --------- ---------- ---------- ----------
Net asset value -- end of period............... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
========= ========= ========= ========= ========= =========
Total Return(4)................................ 2.36% 5.34% 3.55% 2.53% 3.27% 5.06%(3)
Ratios/Supplemental Data:
Net assets, end of period (000 omitted)..... $51,265 $45,889 $68,877 $11,011 $13,856 $15,233
Ratio of net expenses to average daily
net assets................................ 0.47%(3)(5) 0.46%(5) 0.45% 0.45% 0.46% 0.25%(3)
Ratio of net investment income to average daily
net assets................................ 4.74%(3) 5.22% 3.77% 2.52% 3.19% 4.95%(3)
<FN>
(1)During each of the above periods, the Investment Adviser reduced its fee and
in certain periods 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,
- --------------------------------------------------------------------------------------------------------------------------------
1996(6) 1995 1994 1993 1992 1991(2)
- --------------------------------------------------------------------------------------------------------------------------------
Net investment income per share................ $0.02178 $0.05120 $0.03253 $0.01977 $0.02958 $0.02159
========= ========= ========= ========= ========= =========
Ratios (As a percentage of average daily net assets):
Expenses.................................... 0.79%(3) 0.65% 0.71% 0.97% 0.72% 0.97%(3)
========= ========= ========= ========= ========= =========
Net investment income ...................... 4.42%(3) 5.03% 3.51% 1.99% 2.93% 4.23%(3)
========= ========= ========= ========= ========= =========
(2) For the period from the start of business, June 28, 1991, to December 31, 1991.
(3) Annualized.
(4)Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each period reported. Dividends and distributions, if any, are assumed to be
invested at the net asset value on the payable date.
(5)Custodian fees were reduced by credits resulting from cash balances the Fund
maintained with the Custodian (Note 3). The computation of net expenses to
average daily net assets reported above is computed without consideration of
such credits, in accordance with reporting regulations in effect beginning in
1995. If these credits were considered, the ratio of net expenses to average
daily net asets would have been reduced to 0.45% for the six months ended
June 30,1996 and the year ended December 31, 1995.
(6) For the six months ended June 30, 1996.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT U.S. TREASURY NEAR TERM FUND (WNTB)
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996 (UNAUDITED)
===============================================================================
<TABLE>
<CAPTION>
Face Coupon Maturity Market Current Yield To
Amount Description Rate Date Price Value Yield(1) Maturity(1)
- ---------------------------------------------------------------------------------------------------------------------------------
GOVERNMENT INTERESTS -- 98.0%
- ------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 7,000,000 U. S. Treasury Notes 5.125% 03/31/98 98.437 $ 6,890,590 5.21% 6.05%
2,000,000 U. S. Treasury Notes 7.125% 10/15/98 101.969 2,039,380 6.99% 6.16%
3,000,000 U. S. Treasury Notes 5.125% 12/31/98 97.484 2,924,520 5.26% 6.22%
3,450,000 U. S. Treasury Notes 9.000% 05/15/98 105.047 3,624,122 8.57% 6.11%
2,000,000 U. S. Treasury Notes 7.875% 11/15/99 104.453 2,089,060 7.54% 6.38%
900,000 U. S. Treasury Notes 7.250% 11/15/96 100.641 905,769 7.20% 5.43%
2,100,000 U. S. Treasury Notes 8.125% 02/15/98 103.125 2,165,625 7.88% 6.05%
2,000,000 U. S. Treasury Notes 8.000% 08/15/99 104.562 2,091,240 7.65% 6.36%
1,500,000 U. S. Treasury Notes 8.500% 02/15/00 106.656 1,599,840 7.97% 6.39%
3,000,000 U. S. Treasury Notes 7.000% 04/15/99 101.797 3,053,910 6.88% 6.28%
2,000,000 U. S. Treasury Notes 6.375% 01/15/99 100.328 2,006,560 6.35% 6.22%
3,000,000 U. S. Treasury Notes 6.875% 03/31/97 100.859 3,025,770 6.82% 5.65%
5,000,000 U. S. Treasury Notes 6.375% 06/30/97 100.547 5,027,350 6.34% 5.79%
8,400,000 U. S. Treasury Notes 5.625% 08/31/97 99.687 8,373,708 5.64% 5.93%
6,500,000 U. S. Treasury Notes 6.000% 11/30/97 100.016 6,501,040 6.00% 5.95%
1,500,000 U. S. Treasury Notes 5.125% 06/30/98 98.141 1,472,115 5.22% 6.10%
5,500,000 U. S. Treasury Notes 5.875% 08/15/98 99.391 5,466,505 5.91% 6.16%
20,000,000 U. S. Treasury Notes 7.875% 04/15/98 102.953 20,590,600 7.65% 6.07%
9,650,000 U. S. Treasury Notes 7.500% 11/15/01 104.391 10,073,732 7.18% 6.51%
11,100,000 U. S. Treasury Notes 7.125% 02/29/00 102.266 11,351,526 6.97% 6.41%
9,800,000 U. S. Treasury Notes 4.375% 11/15/96 99.594 9,760,212 4.39% 5.38%
4,000,000 U. S. Treasury Notes 7.250% 02/15/98 101.781 4,071,240 7.12% 6.06%
5,500,000 Federal Home Loan Banks 8.000% 07/25/96 100.187 5,510,285 7.99% 5.60%
14,500,000 Federal Home Loan Banks 8.250% 09/25/96 100.625 14,590,625 8.20% 5.49%
3,400,000 Federal Home Loan Banks 5.020% 11/16/98 97.289 3,307,835 5.16% 6.23%
-----------
Total Government Interests (identified cost, $137,740,193)-- 98.0% $138,513,159
RESERVE FUNDS -- 0.7%
1,020,000 American Express Corp. 5.392% 07/01/96 100.00 1,020,000 5.39% 5.39%
----------- ------ ------
Total Investments (identified cost, $138,760,193) -- 98.7% $139,533,159 6.73% 5.95%
======= =======
Other Assets, Less Liabilities -- 1.3% 1,789,079
-----------
Net Assets -- 100.0% $141,322,238
============
Average Maturity -- 1.9 Years (1)
(1) Unaudited.
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT U.S. TREASURY NEAR TERM FUND
===============================================================================
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1996 (UNAUDITED)
- -------------------------------------------------------------------------------
ASSETS:
<S> <C>
Investments --
Identified cost........................ $138,760,193
Unrealized appreciation................ 772,966
------------
Total value (Note 1A)................ $139,533,159
Cash..................................... 68
Interest receivable...................... 2,487,830
------------
Total Assets........................... $142,021,057
------------
LIABILITIES:
Payable to dividend disbursing agent..... $ 681,703
Trustees' fees payable................... 83
Custodian fee payable.................... 6,533
Accrued expenses and other liabilities... 10,500
------------
Total Liabilities...................... $ 698,819
------------
NET ASSETS.................................. $141,322,238
============
NET ASSETS CONSIST OF:
Proceeds from sales of shares (including
shares issued to shareholders in payment of
distributions declared), less cost of shares
redeemed................................. $161,540,389
Accumulated net realized loss on investment
transactions (computed on the basis of
identified cost)......................... (21,208,252)
Unrealized appreciation of investments
(computed on the basis of identified cost) 772,966
Undistributed net investment income......... 217,135
------------
Net assets applicable to outstanding shares $141,322,238
============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING.............................. 13,824,380
============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST................... $10.22
============
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1996 (UNAUDITED)
- -------------------------------------------------------------------------------
INVESTMENT INCOME:
<S> <C>
Interest Income (Note 1B)................ $ 4,825,338
------------
Expenses --
Investment Adviser fee (Note 3)........ $ 295,445
Administrator fee (Note 3)............. 58,120
Compensation of trustees not affiliated with
the Investment Adviser or Administrator 640
Distribution expenses (Note 4)......... 141,414
Custodian fee (Note 3)................. 27,206
Transfer and dividend disbursing agent fees 14,363
Shareholder communication expense...... 11,542
Audit services......................... 23,450
Registration costs..................... 13,092
Printing............................... 926
Legal services......................... 240
Miscellaneous.......................... 4,564
------------
Total expenses....................... $ 591,002
Deduct --
Reduction of custodian fee........... 2,980
------------
Net expenses......................... $ 588,022
------------
Net investment income.............. $ 4,237,316
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Net realized gain on investment transactions
(identified cost basis)................ $ 474,008
Change in unrealized appreciation
of investments......................... (3,630,920)
------------
Net realized and unrealized loss
on investments..................... $ (3,156,912)
------------
Net increase in net assets
from operations.................... $ 1,080,404
============
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT U.S. TREASURY NEAR TERM FUND
==============================================================================
<TABLE>
<CAPTION>
Six Months Ended Year Ended
STATEMENTS OF CHANGES IN NET ASSETS June 30, 1996 Dec. 31, 1995
- -----------------------------------------------------------------------------------------------------------------------------
(UNAUDITED)
INCREASE (DECREASE) IN NET ASSETS:
<S> <C> <C>
From operations --
Net investment income.................................................. $ 4,237,316 $ 10,600,630
Net realized gain (loss) on investment
transactions......................................................... 474,008 (376,568)
Change in unrealized appreciation
of investments....................................................... (3,630,920) 10,227,881
------------ ------------
Increase in net assets from operations............................ $ 1,080,404 $ 20,451,943
Distributions to shareholders from net investment income................... (4,229,864) (10,580,700)
Net increase (decrease) from Fund share transactions (Note 5).............. 871,864 (78,393,631)
------------ ------------
Net decrease in net assets........................................ $ (2,277,596) $ (68,522,388)
NET ASSETS:
At beginning of period..................................................... 143,599,834 212,122,222
------------ ------------
At end of period........................................................... $ 141,322,238 $ 143,599,834
============== ==============
UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED
IN NET ASSETS............................................................. $ 217,135 $ 209,683
============== ==============
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT U.S. TREASURY NEAR TERM FUND
<TABLE>
<CAPTION>
Year Ended December 31,
- ----------------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1996(2) 1995 1994 1993 1992 1991
- ----------------------------------------------------------------------------------------------------------------------------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period........ $ 10.450 $ 9.920 $ 10.840 $ 10.660 $ 10.750 $ 10.260
--------- --------- --------- --------- --------- ---------
Income (loss) from Investment Operations:
Net investment income.................... $ 0.307 $ 0.631 $ 0.588 $ 0.655 $ 0.739 $ 0.795
Net realized and unrealized gain (loss)
on investments......................... (0.230) 0.524 (0.920) 0.180 (0.090) 0.489
--------- --------- ---------- ---------- --------- --------
Total income (loss) from investment
operations........................... $ 0.077 $ 1.155 $ (0.332) $ 0.835 $ 0.649 $ 1.284
--------- -------- ---------- ---------- ---------- ---------
Less distributions from net investment income $ (0.307) $ (0.625) $ (0.588) $ (0.655) $ (0.739) $ 0.794)
-------- -------- ---------- ---------- ---------- ---------
Net asset value, end of period.............. $ 10.220 $ 10.450 $ 9.920 $ 10.840 $ 10.660 $ 10.750
========= ========= ========= ========= ========= ========
Total Return(1)............................. 0.75% 11.93% (3.10%) 7.95% 6.26% 13.08%
Ratios/Supplemental Data:
Net assets, end of period (000 omitted).. $141,322 $143,600 $212,122 $ 380,917 $ 371,074 $232,407
Ratio of expenses to average net assets.. 0.8%(3) 0.8% 0.7% 0.7% 0.8% 0.8%
Ratio of net investment income to average
net assets............................. 6.0%(3) 6.2% 5.7% 6.0% 6.9% 7.7%
Portfolio Turnover Rate.................. 6% 21% 33% 22% 6% 18%
<FN>
(1) Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each year reported. Dividends and distributions, if any, are assumed to be
reinvested at the net asset value on the record date.
(2) For the six months ended June 30, 1996.
(3) Annualized.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT U.S. TREASURY FUND (WUSTB)
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996 (UNAUDITED)
===============================================================================
<TABLE>
<CAPTION>
Face Coupon Maturity Market Current Yield To
Amount Description Rate Date Price Value Yield(1) Maturity(1)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 1,700,000 U. S. Treasury Notes 4.375% 11/15/96 99.594 $ 1,693,098 4.39% 5.38%
14,200,000 U. S. Treasury Notes 6.500% 05/15/05 98.687 14,013,554 6.59% 6.70%
7,600,000 U. S. Treasury Notes 6.250% 05/31/00 99.359 7,551,284 6.29% 6.43%
5,700,000 U. S. Treasury Notes 5.250% 01/31/01 95.453 5,440,821 5.50% 6.40%
4,500,000 U. S. Treasury Notes 5.625% 02/15/06 92.656 4,169,520 6.07% 6.66%
600,000 U. S. Treasury Bonds 11.625% 11/15/04 131.141 786,846 8.86% 6.69%
1,000,000 U. S. Treasury Bonds 10.000% 05/15/10 120.734 1,207,340 8.28% 7.54%
1,300,000 U. S. Treasury Bonds 14.000% 11/15/11 152.531 1,982,903 9.18% 7.99%
2,800,000 U. S. Treasury Bonds 7.250% 05/15/16 102.344 2,865,632 7.08% 7.02%
9,200,000 U. S. Treasury Bonds 6.500% 08/15/05 98.562 9,067,704 6.59% 6.71%
-----------
Total Investments (identified cost, $49,249,152)-- 98.7% $48,778,702 6.51% 6.67%
======= =======
Other Assets, less Liabilities-- 1.3% 663,500
-----------
Net Assets-- 100.0% $49,442,202
============
Average Maturity -- 18.8 Years (1)
(1) Unaudited.
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT U.S. TREASURY FUND
===============================================================================
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1996 (UNAUDITED)
- -------------------------------------------------------------------------------
ASSETS:
<S> <C>
Investments --
Identified cost........................ $ 49,249,152
Unrealized depreciation................ (470,450)
------------
Total value (Note 1A)................ $ 48,778,702
Cash..................................... 203,110
Interest receivable...................... 683,769
------------
Total Assets........................... $ 49,665,581
------------
LIABILITIES:
Payable to dividend disbursing agent..... $ 210,046
Trustees' fees payable................... 83
Custodian fee payable.................... 6,500
Accrued expenses and other liabilities... 6,750
------------
Total Liabilities...................... $ 223,379
------------
NET ASSETS.................................. $ 49,442,202
============
NET ASSETS CONSIST OF:
Proceeds from sales of shares (including shares
issued to shareholders in payment of distributions
declared), less cost of shares redeemed.. $ 49,172,904
Accumulated net realized gain on investments
(computed on the basis of identified cost) 697,773
Unrealized depreciation of investments (computed
on the basis of identified cost)......... (470,450)
Undistributed net investment income......... 41,975
------------
Net assets applicable to outstanding shares $ 49,442,202
============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING.............................. 3,676,737
============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST................... $13.45
============
</TABLE>
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1996 (UNAUDITED)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INVESTMENT INCOME:
<S> <C>
Interest Income (Note 1B)................ $ 959,930
------------
Expenses --
Investment Adviser fee (Note 3)........ $ 59,659
Administrator fee (Note 3)............. 14,912
Compensation of trustees not affiliated with
the Investment Adviser or Administrator 661
Distribution expenses (Note 4)......... 29,829
Custodian fee (Note 3)................. 22,712
Audit services......................... 19,750
Transfer and dividend disbursing agent fees 3,536
Shareholder communication expense...... 3,188
Registration costs..................... 21,386
Printing............................... 574
Legal services......................... 239
Miscellaneous.......................... 3,480
------------
Total expenses....................... $ 179,926
------------
Deduct --
Preliminary reduction of distribution
expenses by Principal Underwriter
(Note 4).......................... $ 29,829
Preliminary reduction of Investment
Adviser fee (Note 3)................ 29,589
Reduction of custodian fee (Note 3).. 13,071
------------
Total deductions..................... $ 72,489
------------
Net expenses......................... $ 107,437
------------
Net investment income.............. $ 852,493
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Net realized gain on investment transactions
(identified cost basis)................ $ 1,132,073
Change in unrealized appreciation
of investments......................... (2,797,099)
------------
Net realized and unrealized loss
on investments..................... $ (1,665,026)
------------
Net decrease in net assets
from operations.................... $ (812,533)
============
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT U.S. TREASURY FUND
===============================================================================
<TABLE>
<CAPTION>
Six Months Ended Year Ended
STATEMENTS OF CHANGES IN NET ASSETS June 30, 1996 Dec. 31, 1995
- ----------------------------------------------------------------------------------------------------------------------------------
(UNAUDITED)
INCREASE (DECREASE) IN NET ASSETS:
<S> <C> <C>
From operations --
Net investment income.................................................. $ 852,493 $ 1,071,994
Net realized gain on investment
transactions......................................................... 1,132,073 529,670
Change in unrealized appreciation
of investments....................................................... (2,797,099) 2,464,279
------------ ------------
Increase (decrease) in net assets from operations................. $ (812,533) $ 4,065,943
Distributions to shareholders from net investment income................... (817,957) (1,072,005)
Net increase (decrease) from Fund share transactions
(Note 5) .............................................................. 35,916,448 (4,496,109)
------------ ------------
Net increase (decrease) in net assets............................. $ 34,285,958 $ (1,502,171)
NET ASSETS:
At beginning of period..................................................... 15,156,244 16,658,415
------------ ------------
At end of period........................................................... $ 49,442,202 $ 15,156,244
============== ==============
UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED
IN NET ASSETS............................................................ $ 41,975 $ 7,439
============== ==============
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT U.S. TREASURY FUND
===============================================================================
<TABLE>
<CAPTION>
Year Ended December 31,
- ----------------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1996(3) 1995 1994 1993 1992 1991
- ----------------------------------------------------------------------------------------------------------------------------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period........ $ 14.710 $ 12.250 $ 14.360 $ 13.190 $ 13.220 $ 12.100
-------- -------- -------- -------- -------- --------
Income (loss) from Investment Operations:
Net investment income(1)................. $ 0.386 $ 0.880 $ 0.880 $ 0.892 $ 0.911 $ 0.902
Net realized and unrealized gain (loss)
on investments......................... (1.264) 2.458 (2.110) 1.170 (0.030) 1.120
-------- -------- -------- -------- -------- --------
Total income (loss)
from investment operations........... $ (0.878) $ 3.338 $ (1.230) $ 2.062 $ 0.881 $ 2.022
-------- -------- -------- -------- -------- --------
Less Distributions:
From net investment income............... $ (0.382) $ (0.878) $ (0.880) $ (0.892) $ (0.911) $ (0.902)
-------- -------- -------- -------- -------- --------
Net asset value, end of period.............. $ 13.450 $ 14.710 $ 12.250 $ 14.360 $ 13.190 $ 13.220
========= ========= ========= ========= ========= =========
Total Return(2)............................. (6.06%) 28.18% (8.66%) 15.90% 7.07% 17.56%
Ratios/Supplemental Data:
Net assets, end of period (000 omitted).. $49,442 $ 15,156 $ 16,658 $ 29,846 $ 29,703 $ 33,857
Ratio of net expenses to average net assets 0.7%(4) 0.9% 0.9% 0.9% 0.9% 0.9%
Ratio of net investment income to average
net assets............................. 5.7%(4) 6.6% 6.9% 6.3% 7.1% 7.4%
Portfolio Turnover Rate.................. 44% 8% 1% 12% 15% 15%
<FN>
(1)During the period ended June 30, 1996 and during each of the four years
ended December 31, 1995, the operating expenses of the Fund were reduced by
an allocation of expenses to the Investment Adviser or a reduction in
distribution fee, or a combination thereof. Had such action not been
undertaken, the net investment income per share and the ratios would have
been as follows:
Year Ended December 31,
---------------------------------------------------------------
1996(3) 1995 1994 1993 1992
- ----------------------------------------------------------------------------------------------------------------
Net investment income per share............. $ 0.353 $ 0.827 $ 0.854 $ 0.878 $ 0.898
========= ========= ========= ========= =========
Ratios (As a percentage of average net assets):
Expenses .............................. 1.2% 1.2% 1.1% 1.0% 1.0%
========= ========= ========= ========= =========
Net investment income.................... 5.2% 6.2% 6.7% 6.2% 7.0%
========= ========= ========= ========= =========
(2)Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each year reported. Dividends and distributions, if any, are assumed to be
reinvested at the net asset value on the record date.
(3) For the six months ended June 30, 1996.
(4) Annualized.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT TOTAL RETURN BOND FUND (WTRB)
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996 (UNAUDITED)
===============================================================================
<TABLE>
<CAPTION>
Face Coupon Maturity Market Current Yield To
Amount Description Rate Date Price Value Yield(1) Maturity(1)
- ----------------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS -- 33.1%
<S> <C> <C> <C> <C> <C> <C> <C>
FINANCIAL -- 4.0%
$ 1,500,000 GE Capital Corp 7.670% 05/22/02 $104.485 $ 1,567,275 7.34% 6.83%
2,000,000 GE Capital Corp 7.875% 12/01/06 103.984 2,079,680 7.57% 7.12%
700,000 Rockland Trust Co.* 9.500% 10/15/96 96.000 672,000 9.90% 24.24%
----------
$ 4,318,955
----------
INDUSTRIALS -- 11.8%
$ 2,850,000 Abbott Labs 5.600% 10/01/03 $ 92.058 $ 2,623,653 6.08% 6.85%
2,000,000 Anheuser Busch 6.900% 10/01/02 99.478 1,989,560 6.94% 6.90%
2,000,000 Archer Daniels Midland Co 6.250% 05/15/03 95.896 1,917,920 6.52% 7.00%
1,500,000 Proctor & Gamble Co 8.000% 11/15/03 104.872 1,573,080 7.63% 6.96%
5,000,000 Sara Lee Corp. 5.750% 09/03/03 92.667 4,633,350 6.21% 7.03%
----------
$12,737,563
----------
UTILITIES -- 17.3%
$ 4,100,000 AT&T Corp. 7.750% 03/01/07 $104.121 $ 4,268,961 7.44% 7.17%
5,000,000 Bell Atlantic - New Jersey 5.875% 02/01/04 92.809 4,640,450 6.33% 7.12%
5,000,000 Bellsouth Telecommunications 6.375% 06/15/04 95.660 4,783,000 6.66% 7.01%
3,000,000 Pacific Bell 7.250% 07/01/02 101.533 3,045,990 7.14% 6.88%
2,000,000 Pacific Tel & Tel 6.500% 07/01/03 95.321 1,906,420 6.82% 7.23%
----------
$18,644,821
----------
U.S. GOVERNMENT AGENCIES -- 9.9%
$ 4,600,000 Federal Home Loan Banks 8.600% 01/25/00 $106.391 $ 4,893,986 8.08% 6.67%
1,500,000 Federal Home Loan Banks 6.070% 06/30/03 95.709 1,435,635 6.34% 6.77%
1,700,000 Federal Home Loan Banks 5.600% 09/22/03 92.872 1,578,824 6.03% 6.84%
3,000,000 Federal Home Loan Banks 5.450% 10/29/03 91.906 2,757,180 5.93% 6.84%
----------
$10,665,625
----------
<PAGE>
U.S. TREASURIES -- 55.4%
$ 4,000,000 U.S. Treasury Bonds 7.250% 05/15/16 $102.344 $ 4,093,760 7.08% 7.02%
3,750,000 U.S. Treasury Bonds 8.250% 05/15/05 104.969 3,936,338 7.86% 7.44%
23,000,000 U.S. Treasury Bonds 6.500% 08/15/05 98.562 22,669,260 6.59% 6.71%
75,000 U.S. Treasury Notes 6.875% 03/31/97 100.859 75,644 6.82% 5.65%
100,000 U.S. Treasury Notes 4.375% 08/15/96 99.891 99,891 4.38% 5.09%
5,500,000 U.S. Treasury Notes 6.500% 05/15/05 98.687 5,427,785 6.59% 6.70%
5,200,000 U.S. Treasury Notes 4.375% 11/15/96 99.594 5,178,888 4.39% 5.38%
1,700,000 U.S. Treasury Notes 7.500% 02/15/05 105.203 1,788,451 7.13% 6.70%
800,000 U.S. Treasury Notes 8.500% 02/15/00 106.656 853,248 7.97% 6.39%
3,000,000 U.S. Treasury Notes 7.750% 02/15/01 105.094 3,152,820 7.37% 6.46%
5,500,000 U.S. Treasury Notes 5.875% 11/15/05 94.203 5,181,165 6.24% 6.72%
1,500,000 U.S. Treasury Notes 5.250% 01/31/01 95.453 1,431,795 5.50% 6.40%
6,500,000 U.S. Treasury Notes 5.625% 02/15/06 92.656 6,022,640 6.07% 6.66%
----------
$59,911,685
----------
Total Investments (identified cost, $107,981,857)-- 98.4% $106,278,649 6.66% 6.88%
======= =======
Other Assets, Less Liabilities -- 1.6% 1,721,816
----------
Net Assets -- 100.0% $108,000,465
============
Average Maturity -- 9.1 Years (1)
<FN>
* Security priced by management
(1) Unaudited.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT TOTAL RETURN BOND FUND
===============================================================================
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1996 (UNAUDITED)
- -------------------------------------------------------------------------------
ASSETS:
<S> <C>
Investments --
Identified cost........................ $107,981,857
Unrealized depreciation................ (1,703,208)
------------
Total value (Note 1A)................ $106,278,649
Cash..................................... 211,644
Interest receivable...................... 2,028,909
------------
Total Assets........................... $108,519,202
------------
LIABILITIES:
Payable to dividend disbursing agent..... $ 504,173
Trustees' fees payable................... 83
Custodian fee payable.................... 7,000
Accrued expenses and other liabilities... 7,481
------------
Total Liabilities...................... $ 518,737
------------
NET ASSETS.................................. $108,000,465
============
NET ASSETS CONSIST OF:
Proceeds from sales of shares (including shares
issued to shareholders in payment of distributions
declared), less cost of shares redeemed.. $110,236,804
Accumulated net realized loss on investment
transactions (computed on the basis of
identified cost)......................... (615,246)
Unrealized depreciation of investments (computed
on the basis of identified cost)......... (1,703,208)
Undistributed net investment income......... 82,115
------------
Net assets applicable to outstanding shares $108,000,465
============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING.............................. 8,847,995
============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST................... $12.21
============
</TABLE>
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1996 (UNAUDITED)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INVESTMENT INCOME:
<S> <C>
Interest Income (Note 1B)................ $ 3,769,726
------------
Expenses --
Investment Adviser fee (Note 3)........ $ 233,557
Administrator fee (Note 3)............. 52,737
Compensation of trustees not affiliated with
the Investment Adviser or Administrator 640
Distribution expenses (Note 4)......... 114,503
Custodian fee (Note 3)................. 22,135
Audit services......................... 23,450
Transfer and dividend disbursing agent fees 15,234
Shareholder communication expense...... 8,282
Registration costs..................... 13,705
Legal services......................... 240
Printing............................... 1,469
Interest expense....................... 46
Miscellaneous.......................... 2,954
------------
Total expenses....................... $ 488,952
Deduct --
Reduction of custodian fee........... 4,337
------------
Net expenses......................... $ 484,615
------------
Net investment income.............. $ 3,285,111
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Net realized gain on investment transactions
(identified cost basis)................ $ 856,873
Change in unrealized appreciation
of investments......................... (9,352,727)
------------
Net realized and unrealized loss
on investments..................... $ (8,495,854)
------------
Net decrease in net assets
from operations.................... $ (5,210,743)
============
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT TOTAL RETURN BOND FUND
===============================================================================
<TABLE>
<CAPTION>
Six Months Ended Year Ended
STATEMENTS OF CHANGES IN NET ASSETS June 30, 1996 Dec. 31, 1995
- ----------------------------------------------------------------------------------------------------------------------------------
(UNAUDITED)
INCREASE (DECREASE) IN NET ASSETS:
<S> <C> <C>
From operations --
Net investment income...................................................... $ 3,285,111 $ 7,829,870
Net realized gain on investment
transactions............................................................. 856,873 411,969
Change in unrealized appreciation
of investments........................................................... (9,352,727) 17,483,217
------------ ------------
Increase (decrease) in net assets from operations..................... $ (5,210,743) $ 25,725,056
Distributions to shareholders from net investment income....................... (3,281,672) (7,796,582)
Net decrease from Fund share transactions (Note 5)............................. (6,268,722) (38,663,606)
------------ ------------
Net decrease in net assets............................................ $ (14,761,137) $ (20,735,132)
NET ASSETS:
At beginning of period......................................................... 122,761,602 143,496,734
------------ ------------
At end of period............................................................... $ 108,000,465 $ 122,761,602
============== ==============
UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED
IN NET ASSETS.................................................................. $ 82,115 $ 78,676
============== ==============
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT TOTAL RETURN BOND FUND
===============================================================================
<TABLE>
<CAPTION>
Year Ended December 31,
- ----------------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1996(2) 1995 1994 1993 1992 1991
- ----------------------------------------------------------------------------------------------------------------------------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period........ $ 13.120 $ 11.430 $ 13.010 $ 12.610 $ 12.580 $ 11.700
-------- -------- -------- -------- -------- --------
Income (loss) from Investment Operations:
Net investment income.................... $ 0.357 $ 0.758 $ 0.740 $ 0.789 $ 0.830 $ 0.854
Net realized and unrealized gain (loss) on
investments............................ (0.911) 1.685 (1.580) 0.580 0.030 0.880
-------- -------- -------- -------- -------- --------
Total income (loss)
from investment operations........... $ (0.554) $ 2.443 $ (0.840) $ 1.369 $ 0.860 $ 1.734
-------- -------- -------- -------- -------- --------
Less Distributions:
From net investment income............... $ (0.356) $ (0.753) $ (0.740) $ (0.789) $ (0.830) $ (0.854)
From net realized gain on investments.... -- -- -- (0.177) -- --
In excess of net realized gain on investments -- -- -- (0.003) -- --
-------- -------- -------- -------- -------- --------
Total distributions.................... $ (0.356) $ (0.753) $ (0.740) $ (0.969) $ (0.830) $ (0.854)
-------- -------- -------- -------- -------- --------
Net asset value, end of period.............. $ 12.210 $ 13.120 $ 11.430 $ 13.010 $ 12.610 $ 12.580
========= ========= ========= ========= ========= =========
Total Return(1)............................. (4.24%) 21.97% (6.57%) 11.03% 7.13% 15.38%
Ratios/Supplemental Data:
Net assets, end of period(000 omitted)... $108,000 $122,762 $143,497 $259,513 $ 217,564 $134,728
Ratio of net expenses to average net assets 0.8%(3) 0.8% 0.8% 0.8% 0.8% 0.8%
Ratio of net investment income to average
net assets............................. 5.7%(3) 6.2% 6.1% 6.0% 6.7% 7.2%
Portfolio Turnover Rate.................. 41% 50% 32% 36% 13% 56%
<FN>
(1)Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each year reported. Dividends and distributions, if any, are assumed to be
reinvested at the net asset value on the record date.
(2) For the period ended June 30, 1996.
(3) Annualized.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT CURRENT INCOME FUND (WCIF)
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996 (UNAUDITED)
===============================================================================
<TABLE>
<CAPTION>
Face Coupon Maturity Market Current
Amount Description Rate Date Price Value Yield(1)
- -----------------------------------------------------------------------------------------------------------------------------------
GOVERNMENT INTERESTS - 98.1%
- ----------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 1,494,516 GNMA POOL # 000169 7.500% 09/20/22 $ 98.563 $ 1,473,040 7.61%
735,349 GNMA POOL # 000394 7.500% 10/20/22 98.563 724,782 7.61%
5,396 GNMA POOL # 000434 8.000% 04/15/01 101.934 5,500 7.85%
815,857 GNMA POOL # 000446 7.500% 11/20/22 98.563 804,133 7.61%
1,420 GNMA POOL # 000473 7.500% 04/15/01 100.509 1,427 7.46%
1,434,948 GNMA POOL # 000545 7.500% 12/20/22 98.563 1,414,328 7.61%
2,313,058 GNMA POOL # 000723 7.500% 01/20/23 98.500 2,278,362 7.61%
2,167,558 GNMA POOL # 001268 8.000% 07/20/23 100.625 2,181,105 7.95%
3,454 GNMA POOL # 001408 6.500% 03/15/02 98.614 3,406 6.59%
146,903 GNMA POOL # 001596 9.000% 04/20/21 104.657 153,744 8.60%
496,256 GNMA POOL # 002152 6.500% 01/20/26 92.437 458,724 7.03%
506,360 GNMA POOL # 002185 7.500% 03/20/26 98.062 496,547 7.65%
999,165 GNMA POOL # 002218 7.500% 05/20/26 98.062 979,801 7.65%
3,948 GNMA POOL # 003026 8.000% 01/15/04 102.305 4,039 7.82%
1,734 GNMA POOL # 003331 8.000% 01/15/04 102.305 1,774 7.82%
4,360 GNMA POOL # 004183 8.000% 07/15/04 102.489 4,469 7.81%
2,912 GNMA POOL # 004433 9.000% 11/15/04 105.279 3,066 8.55%
8,124 GNMA POOL # 005466 8.500% 03/15/05 103.752 8,429 8.19%
968 GNMA POOL # 005561 8.500% 04/15/05 103.512 1,002 8.21%
3,743 GNMA POOL # 005687 7.250% 02/15/05 100.239 3,752 7.23%
5,013 GNMA POOL # 005910 7.250% 02/15/05 100.058 5,016 7.25%
19,301 GNMA POOL # 007003 8.000% 07/15/05 102.637 19,810 7.79%
3,114 GNMA POOL # 007319 6.500% 10/15/04 97.994 3,052 6.63%
7,379 GNMA POOL # 009106 8.250% 05/15/06 103.002 7,601 8.01%
9,940 GNMA POOL # 009889 7.250% 02/15/06 99.867 9,927 7.26%
1,987 GNMA POOL # 011191 7.250% 04/15/06 99.867 1,984 7.26%
6,484 GNMA POOL # 012526 8.000% 11/15/06 102.874 6,670 7.78%
116,059 GNMA POOL # 151443 10.000% 03/15/16 109.183 126,717 9.16%
217,441 GNMA POOL # 151882 8.500% 09/15/19 103.593 225,254 8.21%
50,850 GNMA POOL # 153564 10.000% 04/15/16 109.183 55,520 9.16%
174,583 GNMA POOL # 172558 9.500% 08/15/16 107.655 187,947 8.82%
184,875 GNMA POOL # 176992 8.000% 11/15/16 102.174 188,894 7.83%
60,915 GNMA POOL # 177784 8.000% 10/15/16 102.086 62,186 7.84%
76,352 GNMA POOL # 180033 9.500% 09/15/16 107.561 82,125 8.83%
11,144 GNMA POOL # 188060 9.500% 10/15/16 107.561 11,987 8.83%
8,455 GNMA POOL # 190959 8.500% 02/15/17 103.780 8,775 8.19%
145,938 GNMA POOL # 192357 8.000% 04/15/17 102.086 148,982 7.84%
520,093 GNMA POOL # 194057 8.500% 04/15/17 103.780 539,753 8.19%
116,694 GNMA POOL # 194287 9.500% 03/15/17 107.619 125,585 8.83%
923,821 GNMA POOL # 194926 8.500% 02/15/17 103.840 959,296 8.19%
17,453 GNMA POOL # 196063 8.500% 03/15/17 103.840 18,123 8.19%
<PAGE>
210,180 GNMA POOL # 199537 8.000% 03/15/17 $101.999 $ 214,381 7.84%
326,615 GNMA POOL # 203369 8.000% 12/15/16 102.086 333,428 7.84%
16,065 GNMA POOL # 206740 10.000% 10/15/17 109.093 17,526 9.17%
114,641 GNMA POOL # 206762 9.000% 04/15/21 105.281 120,695 8.55%
95,572 GNMA POOL # 207019 8.000% 03/15/17 101.999 97,482 7.84%
34,500 GNMA POOL # 208076 8.000% 04/15/17 102.261 35,280 7.82%
54,774 GNMA POOL # 210520 10.500% 08/15/17 110.234 60,380 9.53%
38,920 GNMA POOL # 210618 9.500% 04/15/17 107.619 41,885 8.83%
191,644 GNMA POOL # 211013 9.000% 01/15/20 105.531 202,244 8.53%
182,157 GNMA POOL # 211231 8.500% 05/15/17 103.840 189,152 8.19%
358,594 GNMA POOL # 211279 8.000% 04/15/17 102.086 366,074 7.84%
114,511 GNMA POOL # 212601 8.500% 06/15/17 103.780 118,840 8.19%
40,319 GNMA POOL # 218420 8.500% 11/15/21 103.406 41,692 8.22%
282,260 GNMA POOL # 219335 8.000% 05/15/17 102.086 288,148 7.84%
263,215 GNMA POOL # 220703 8.000% 05/15/17 101.999 268,477 7.84%
29,954 GNMA POOL # 220917 8.500% 04/15/17 103.780 31,086 8.19%
642,590 GNMA POOL # 222112 8.000% 01/15/22 101.375 651,426 7.89%
42,015 GNMA POOL # 223126 10.000% 08/15/17 109.093 45,835 9.17%
137,712 GNMA POOL # 223133 9.500% 07/15/17 107.468 147,996 8.84%
33,009 GNMA POOL # 223348 10.000% 08/15/18 109.156 36,031 9.16%
36,210 GNMA POOL # 223588 10.000% 12/15/18 109.156 39,525 9.16%
23,585 GNMA POOL # 224078 10.000% 07/15/18 109.093 25,730 9.17%
106,146 GNMA POOL # 228308 10.000% 01/15/19 109.093 115,798 9.17%
78,674 GNMA POOL # 228483 9.500% 09/15/19 107.374 84,475 8.85%
65,482 GNMA POOL # 230223 9.500% 04/15/18 107.655 70,495 8.82%
72,951 GNMA POOL # 235000 10.000% 01/15/18 109.093 79,584 9.17%
69,593 GNMA POOL # 245580 9.500% 07/15/18 107.468 74,790 8.84%
57,447 GNMA POOL # 247473 10.000% 09/15/18 109.156 62,707 9.16%
163,149 GNMA POOL # 247681 9.000% 11/15/19 105.531 172,173 8.53%
50,717 GNMA POOL # 247872 10.000% 09/15/18 109.031 55,297 9.17%
35,131 GNMA POOL # 250412 8.000% 03/15/18 101.999 35,833 7.84%
80,248 GNMA POOL # 251241 9.500% 06/15/18 107.468 86,241 8.84%
120,139 GNMA POOL # 258911 9.500% 09/15/18 107.374 128,998 8.85%
66,699 GNMA POOL # 260999 9.500% 09/15/18 107.468 71,680 8.84%
93,043 GNMA POOL # 263439 10.000% 02/15/19 109.031 101,446 9.17%
106,665 GNMA POOL # 265267 9.500% 08/15/20 107.280 114,430 8.86%
51,772 GNMA POOL # 266983 10.000% 02/15/19 109.031 56,448 9.17%
31,908 GNMA POOL # 273690 9.500% 08/15/19 107.374 34,261 8.85%
94,846 GNMA POOL # 274489 9.500% 12/15/19 107.280 101,751 8.86%
38,205 GNMA POOL # 275456 9.500% 08/15/19 107.280 40,986 8.86%
108,314 GNMA POOL # 275538 9.500% 01/15/20 107.374 116,301 8.85%
51,426 GNMA POOL # 277205 9.000% 12/15/19 105.531 54,270 8.53%
82,425 GNMA POOL # 285467 9.500% 07/15/20 107.374 88,503 8.85%
<PAGE>
110,366 GNMA POOL # 285744 9.000% 05/15/20 $105.614 $ 116,562 8.52%
136,426 GNMA POOL # 286556 9.000% 03/15/20 105.406 143,801 8.54%
3,010 GNMA POOL # 287999 9.000% 09/15/20 105.406 3,173 8.54%
268,289 GNMA POOL # 289092 9.000% 04/15/20 105.531 283,128 8.53%
13,879 GNMA POOL # 289949 8.500% 07/15/21 102.937 14,287 8.26%
32,930 GNMA POOL # 290700 9.000% 08/15/20 105.281 34,669 8.55%
66,178 GNMA POOL # 291933 9.500% 07/15/20 107.280 70,996 8.86%
43,170 GNMA POOL # 293666 8.500% 06/15/21 103.499 44,681 8.21%
4,016 GNMA POOL # 294209 9.000% 07/15/21 105.281 4,228 8.55%
59,233 GNMA POOL # 294577 9.500% 11/15/20 107.155 63,471 8.87%
13,305 GNMA POOL # 297345 8.500% 08/15/20 103.499 13,771 8.21%
41,148 GNMA POOL # 301017 8.500% 06/15/21 102.937 42,357 8.26%
131,171 GNMA POOL # 301366 8.500% 06/15/21 103.406 135,639 8.22%
164,329 GNMA POOL # 302713 9.000% 02/15/21 105.281 173,007 8.55%
16,355 GNMA POOL # 302723 8.500% 05/15/21 103.406 16,912 8.22%
116,107 GNMA POOL # 302781 8.500% 06/15/21 103.499 120,170 8.21%
156,217 GNMA POOL # 302933 8.500% 06/15/21 103.406 161,538 8.22%
143,623 GNMA POOL # 304512 8.500% 05/15/21 103.593 148,783 8.21%
331,407 GNMA POOL # 305091 9.000% 07/15/21 105.031 348,080 8.57%
19,575 GNMA POOL # 306669 8.000% 07/15/21 101.375 19,844 7.89%
174,612 GNMA POOL # 306693 8.500% 09/15/21 103.406 180,559 8.22%
115,107 GNMA POOL # 307553 8.500% 06/15/21 103.406 119,028 8.22%
186,736 GNMA POOL # 308792 9.000% 07/15/21 105.031 196,131 8.57%
123,830 GNMA POOL # 311087 8.500% 07/15/21 103.406 128,048 8.22%
21,887 GNMA POOL # 314222 8.500% 04/15/22 102.937 22,530 8.26%
271,303 GNMA POOL # 314581 9.500% 10/15/21 107.155 290,715 8.87%
445,067 GNMA POOL # 314912 8.500% 05/15/22 102.937 458,139 8.26%
511,949 GNMA POOL # 315187 8.000% 06/15/22 101.250 518,348 7.90%
590,279 GNMA POOL # 315388 8.000% 02/15/22 101.375 598,395 7.89%
525,632 GNMA POOL # 315754 8.000% 01/15/22 101.250 532,202 7.90%
1,137,670 GNMA POOL # 316240 8.000% 01/15/22 101.375 1,153,313 7.89%
368,761 GNMA POOL # 316615 8.500% 11/15/21 102.937 379,592 8.26%
299,641 GNMA POOL # 317069 8.500% 12/15/21 102.937 308,441 8.26%
473,676 GNMA POOL # 317351 8.000% 05/15/22 101.250 479,597 7.90%
505,998 GNMA POOL # 317358 8.000% 05/15/22 101.250 512,323 7.90%
450,258 GNMA POOL # 318776 8.000% 02/15/22 101.375 456,449 7.89%
13,552 GNMA POOL # 318793 8.500% 02/15/22 103.499 14,026 8.21%
481,589 GNMA POOL # 319441 8.500% 04/15/22 102.937 495,733 8.26%
328,806 GNMA POOL # 321806 8.000% 05/15/22 101.250 332,916 7.90%
640,358 GNMA POOL # 321807 8.000% 05/15/22 101.250 648,362 7.90%
409,802 GNMA POOL # 321976 8.500% 01/15/22 102.937 421,838 8.26%
767,250 GNMA POOL # 323226 8.000% 06/15/22 101.250 776,841 7.90%
616,931 GNMA POOL # 323929 8.000% 02/15/22 101.375 625,414 7.89%
<PAGE>
550,366 GNMA POOL # 325165 8.000% 06/15/22 $101.250 $ 557,246 7.90%
432,004 GNMA POOL # 325651 8.000% 06/15/22 101.250 437,404 7.90%
884,601 GNMA POOL # 329540 7.500% 08/15/22 99.000 875,755 7.58%
1,193,061 GNMA POOL # 329982 7.500% 02/15/23 99.000 1,181,130 7.58%
623,805 GNMA POOL # 331361 8.000% 11/15/22 101.125 630,823 7.91%
1,365,643 GNMA POOL # 335746 8.000% 10/15/22 101.250 1,382,714 7.90%
517,103 GNMA POOL # 335950 8.000% 10/15/22 101.250 523,567 7.90%
2,613,830 GNMA POOL # 348103 7.000% 06/15/23 96.375 2,519,079 7.26%
882,857 GNMA POOL # 348213 6.500% 08/15/23 93.750 827,678 6.93%
1,437,024 GNMA POOL # 350372 7.000% 04/15/23 96.437 1,385,823 7.26%
1,564,273 GNMA POOL # 350659 7.500% 06/15/23 99.000 1,548,630 7.58%
1,859,471 GNMA POOL # 350938 6.500% 08/15/23 93.750 1,743,254 6.93%
876,556 GNMA POOL # 362125 7.000% 10/15/23 96.437 845,324 7.26%
943,711 GNMA POOL # 362174 6.500% 01/15/24 93.750 884,729 6.93%
931,396 GNMA POOL # 362628 7.000% 08/15/23 96.375 897,633 7.26%
940,384 GNMA POOL # 363429 7.000% 08/15/23 96.281 905,411 7.27%
897,620 GNMA POOL # 367414 6.000% 11/15/23 91.031 817,112 6.59%
2,615,759 GNMA POOL # 367806 6.500% 09/15/23 93.657 2,449,841 6.94%
2,430,079 GNMA POOL # 368238 7.000% 12/15/23 96.281 2,339,704 7.27%
2,624,154 GNMA POOL # 368502 7.000% 02/15/24 96.281 2,526,562 7.27%
1,970,943 GNMA POOL # 370773 6.000% 11/15/23 91.031 1,794,169 6.59%
2,852,450 GNMA POOL # 372050 6.500% 02/15/24 93.657 2,671,519 6.94%
1,025,715 GNMA POOL # 414736 7.500% 11/15/25 98.562 1,010,965 7.61%
998,523 GNMA POOL # 421829 7.500% 04/15/26 98.562 984,240 7.61%
997,554 GNMA POOL # 424173 7.500% 03/15/26 98.562 983,208 7.61%
-----------
Total Government Investments (identified cost, $64,749,372)-- 98.1% $63,247,971
RESERVE FUNDS - 1.8%
- --------------------
1,195,000 American Express Corp 5.392% 07/01/96 100.000 1,195,000 5.65%
----------- ------
Total Investments (identified cost $65,944,372)-- 99.9% $64,442,971 7.13%
=======
Other Assets, less Liabilities-- 0.1% 33,316
-----------
Net Assets-- 100.0% $64,476,287
============
(1) Unaudited.
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT CURRENT INCOME FUND
===============================================================================
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1996 (UNAUDITED)
- -------------------------------------------------------------------------------
ASSETS:
<S> <C>
Investments --
Identified cost........................ $ 65,944,372
Unrealized depreciation................ (1,501,401)
------------
Total value (Note 1A)................ $ 64,442,971
Cash .................................... 1,602
Interest receivable...................... 402,220
Receivable for investments sold.......... 4,393
------------
Total Assets........................... $ 64,851,186
------------
LIABILITIES:
Payable to dividend disbursing agent..... $ 357,393
Trustees' fees payable................... 83
Custodian fee payable.................... 8,300
Accrued expenses and other liabilities... 9,123
------------
Total Liabilities...................... $ 374,899
------------
NET ASSETS.................................. $ 64,476,287
============
NET ASSETS CONSIST OF:
Proceeds from sales of shares (including shares
issued to shareholders in payment of distributions
declared), less cost of shares redeemed.. $ 66,907,274
Accumulated net realized loss on investment
transactions (computed on the basis of
identified cost)......................... (964,981)
Unrealized depreciation of investments (computed
on the basis of identified cost)......... (1,501,401)
Undistributed net investment income......... 35,395
------------
Net assets applicable to outstanding shares $ 64,476,287
============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING.............................. 6,281,439
============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST................... $10.26
============
</TABLE>
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1996 (UNAUDITED)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INVESTMENT INCOME:
<S> <C>
Interest Income (Note 1B)................ $ 2,385,960
------------
Expenses --
Investment Adviser fee (Note 3)........ $ 128,299
Administrator fee (Note 3)............. 32,069
Compensation of trustees not affiliated with
the Investment Adviser or Administrator 640
Distribution expenses (Note 4)......... 65,596
Custodian fee (Note 3)................. 27,224
Audit services......................... 17,925
Transfer and dividend disbursing agent fees 6,378
Shareholder communication expense...... 6,883
Registration costs..................... 14,943
Printing............................... 574
Legal services......................... 240
Miscellaneous.......................... 4,489
------------
Total expenses....................... $ 305,260
Deduct --
Preliminary reduction of distribution
expenses paid by Principal Underwriter $ 10,485
Reduction of custodian fee........... 2,257
------------
Total deductions..................... $ 12,742
------------
Net expenses......................... $ 292,518
------------
Net investment income.............. $ 2,093,442
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Net realized loss on investment transactions
(identified cost basis)................ $ (50,878)
Change in unrealized appreciation
of investments......................... (2,447,331)
------------
Net realized and unrealized loss
on investments..................... $ (2,498,209)
------------
Net decrease in net assets
from operations.................... $ (404,767)
============
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT CURRENT INCOME FUND
===============================================================================
<TABLE>
<CAPTION>
Six Months Ended Year Ended
STATEMENTS OF CHANGES IN NET ASSETS June 30, 1996 Dec. 31, 1995
- ----------------------------------------------------------------------------------------------------------------------------------
(UNAUDITED)
INCREASE (DECREASE) IN NET ASSETS:
<S> <C> <C>
From operations --
Net investment income.................................................. $ 2,093,442 $ 5,303,079
Net realized loss on investment
transactions......................................................... (50,878) (215,933)
Change in unrealized appreciation (depreciation)
of investments....................................................... (2,447,331) 7,735,307
------------ ------------
Increase (decrease) in net assets from operations................. $ (404,767) $ 12,822,453
------------ ------------
Distributions to shareholders --
From net investment income............................................. $ (2,091,662) $ (5,270,012)
------------ ------------
Net increase (decrease) from Fund share transactions (Note 5).............. $ 627,543 $ (25,384,872)
------------ ------------
Net decrease in net assets........................................ $ (1,868,886) $ (17,832,431)
NET ASSETS:
At beginning of period..................................................... 66,345,173 84,177,604
------------ ------------
At end of period........................................................... $ 64,476,287 $ 66,345,173
============== ==============
UNDISTRIBUTED NET INVESTMENT INCOME
INCLUDED IN NET ASSETS..................................................... $ 35,395 $ 33,615
============== ==============
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT CURRENT INCOME FUND
<TABLE>
<CAPTION>
Year Ended December 31,
- ----------------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1996(3) 1995 1994 1993 1992 1991
- ----------------------------------------------------------------------------------------------------------------------------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period........ $ 10.670 $ 9.710 $ 10.750 $ 10.780 $ 10.850 $ 10.160
-------- -------- -------- -------- -------- --------
Income (loss) from Investment Operations:
Net investment income(1)................. $ 0.340 $ 0.696 $ 0.690* $ 0.728 $ 0.767 $ 0.798
Net realized and unrealized gain (loss) on
investments............................ (0.410) 0.955 (1.040) (0.030) (0.069) 0.690
-------- -------- -------- -------- -------- --------
Total income (loss)
from investment operations......... $ (0.070) $ 1.651 $ (0.350) $ 0.698 $ 0.698 $ 1.488
-------- -------- -------- -------- -------- --------
Less Distributions:
From net investment income............... $ (0.340) $ (0.691) $ (0.690) $ (0.728) $ (0.767) $ (0.798)
From net realized gain................... -- -- -- -- (0.001) --
-------- -------- -------- -------- -------- --------
Total distributions.................. $ (0.340) $ (0.691) $ (0.690) $ (0.728) $ (0.768) $ (0.798)
-------- -------- -------- -------- -------- --------
Net asset value, end of period.............. $ 10.260 $ 10.670 $ 9.710 $ 10.750 $ 10.780 $ 10.850
========= ========= ========= ========= ========= =========
Total Return(2)............................. (0.65%) 17.46% (3.30%) 6.59% 6.73% 15.31%
Ratios/Supplemental Data:
Net assets, end of period (000 omitted).. $ 64,476 $ 66,345 $84,178 $ 115,158 $ 99,676 $ 65,700
Ratio of net expenses to average net assets 0.9%(4) 0.9% 0.8% 0.8% 0.9% 0.9%
Ratio of net investment income to average
net assets............................. 6.4%(4) 6.8% 6.9% 6.7% 7.2% 7.6%
Portfolio Turnover Rate.................. 8% 26% 10% 4% 13% 5%
<FN>
(1)During the period ended June 30, 1996 and the year ended December 31, 1991,
the operating expenses of the Fund were reduced by a reduction of the
distribution fee. Had such actions not been undertaken, the net investment
income per share and the ratios would have been as follows:
1996(3) 1991
- ---------------------------------------------------------------------------------------------------------------------------------
Net investment income per share............. $ 0.338 $ 0.787
========= =========
Ratios (As a percentage of average net assets):
Expenses .............................. 0.93%(4) 1.0%
========= =========
Net investment income.................... 6.34%(4) 7.5%
========= =========
* Includes distribution in excess of net investment income of $.00013 per share.
(2)Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each year reported. Dividends and distributions, if any, are assumed to be
reinvested at the net asset value on the record date.
(3)For the period ended June 30,1996.
(4)Annualized.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
THE WRIGHT MANAGED INCOME TRUST
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
(1) SIGNIFICANT ACCOUNTING POLICIES
The Trust, issuer of Wright U.S. Treasury Money Market Fund (WTMM) series,
Wright U.S. Treasury Near Term Fund (WNTB) series, Wright U.S. Treasury Fund
(WUSTB) series, Wright Total Return Bond Fund (WTRB) series, and Wright Current
Income Fund (WCIF) series, is registered under the Investment Company Act of
1940, as amended, as a diversified, open-end, management investment company. The
following is a summary of significant accounting policies consistently followed
by the Trust in the preparation of its financial statements. The policies are in
conformity with generally accepted accounting principles.
A. Investment Valuations -- Investments of the various funds for which market
quotations are readily available are valued at current market value as
furnished by a pricing service. Investments for which valuations are not
readily available will be appraised at their fair value as determined in
good faith by or at the direction of the Trustees. Short-term obligations
maturing in sixty days or less are valued at amortized cost, which
approximates value. The WTMM's use of amortized cost is subject to the
Fund's compliance with certain conditions as specified under Rule 2a-7 of
the Investment Company Act of 1940.
B. Interest Income -- Interest income consists of interest accrued and
discount earned (including both original issue and market discount) and
amortization of premium or discount on long-term debt securities when
required for federal income tax purposes. The income is accrued ratably to
the date of maturity on the investments of the Funds.
C. Expense Reduction -- The Fund has entered into an arrangement with its
custodian agent whereby interest earned on uninvested cash blances are used
to offset custody fees. All significant reductions are reported as a
reduction of expenses in the Statement of Operations.
D. Federal Taxes-- The Trust's policy is to comply with the provisions of
the Internal Revenue Code (the Code) available to regulated investment
companies and to distribute to shareholders each year all of its taxable
income, including any net realized gain on investments. Accordingly, no
provision for federal income or excise tax is necessary. At December 31,
1995, the Trust, for federal income tax purposes, had capital loss
carryovers of $21,682,260 (WNTB), $434,300 (WUSTB), $1,472,119 (WTRB) and
$914,103 (WCIF) which will reduce taxable income arising from future
net realized gain on investments, if any, to the extent permitted by the
Code, and thus will reduce the amount of the distribution to shareholders
which would otherwise be necessary to relieve the respective Fund of any
liability for federal income or excise tax. Pursuant to the Code, such
capital loss carryovers will expire as follows:
12/31 WNTB WUSTB WTRB WCIF
- ----------------------------------------------------------------------
1996 $2,300,814 $-- $-- $--
1997 1,319,208 -- -- --
1998 3,324,484 434,300 -- --
1999 4,467,443 -- -- --
2000 2,957,673 -- -- 7,132
2001 -- -- -- 8,619
2002 6,936,070 -- 1,472,119 682,417
2003 376,568 -- -- 215,933
- ----------------------------------------------------------------------
E. Interim Financial Information -- The interim financial statements relating
to June 30, 1996 and for the period then ended have not been audited by
independent ertified public accountants, but in the opinion of the Trust's
management, reflect all adjustments, consisting only of normal recurring
adjustments, necessary for the fair presentation of the financial
statements.
F. Use of Estimates -- The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported
amounts of revenue and expense during the reporting period. Actual results
could differ from those estimates.
G. Deferred Organization Costs -- Costs incurred by WTMM in connection with
its organization are being amortized on a straight-line basis through
June 1996.
H. Other -- Investment transactions are accounted for on the date the
investments are purchased or sold.
(2) DISTRIBUTIONS
Each Fund's policy is to determine net income once daily, as of the close
of the New York Stock Exchange and the net income so determined is declared as a
dividend to shareholders of record at the time of such determination.
Distributions of realized capital gains are made at least annually. Shareholders
may reinvest capital gain distributions in additional shares of the same Fund at
the net asset value as of the ex-dividend date. Dividends may be reinvested in
additional shares of the same Fund at the net asset value as of the payable
date.
The Trust requires that differences in the recognition or classification of
income between the financial statements and tax earnings and profits which
result in temporary overdistributions for financial statement purposes, are
classified as distributions in excess of net investment income or accumulated
net realized gains.
The tax treatment of distributions for the calendar year will be reported
to shareholders prior to February 1, 1997 and will be based on tax accounting
methods which may differ from amounts determined for financial statements
purposes.
(3) INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The Trust has engaged Wright Investors' Service (Wright) to perform
investment management, investment advisory, and other services. For its
services, Wright is compensated based upon a percentage of average daily net
assets which rate is adjusted as average daily net assets exceed certain levels.
For the period ended June 30, 1996, the effective annual rate was 0.35% for
WTMM, 0.42% for WNTB, 0.40% for WUSTB, 0.41% for WTRB, and 0.39% for WCIF. To
enhance the net income of the Funds, Wright made a preliminary reduction of its
investment adviser fee by $61,813 for WTMM and $29,589 for the benefit of WUSTB.
The Trust also has engaged Eaton Vance Management (Eaton Vance) to act as
administrator of the Trust. Under the Administration Agreement, Eaton Vance is
responsible for managing the business affairs of the Trust and is compensated
based upon a percentage of average daily net assets which rate is reduced as
average daily net assets exceed certain levels. For the period ended June 30,
1996, the effective annual rate was 0.07% for WTMM, 0.08% for WNTB, 0.10% for
WUSTB, 0.09% for WTRB, and 0.10% for WCIF. Certain of the Trustees and officers
of the Trust are directors/trustees and/or officers of the above organizations.
Except as to Trustees of the Trust who are not affiliated with Eaton Vance or
Wright, Trustees and officers received remuneration for their services to the
Trust out of fees paid to Eaton Vance and Wright.
(4) DISTRIBUTION EXPENSES
The Trustees have adopted a Distribution Plan (the Plan) pursuant to Rule
12b-1 of the Investment Company Act of 1940. The Plan provides that each of the
Funds, except WTMM, will pay Wright Investors' Service Distributors, Inc.
(Principal Underwriter), a subsidiary of Wright, at an annual rate of 2/10 of 1%
of the average daily net assets of each Fund for activities primarily intended
to result in the sale of each Fund's shares. For the period ended June 30, 1996,
the Principal Underwriter made a preliminary reduction of its fee to WUSTB and
WCIF by $29,829 and $10,485, respectively.
(5) SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number
of full and fractional shares of beneficial interest (without par value).
Transactions in Fund shares were as follows:
<TABLE>
<CAPTION>
Six Months Ended Year Ended
June 30, 1996 (UNAUDITED) December 31, 1995
----------------------------------------------------------
Shares Amount Shares Amount
- ---------------------------------------------------------------------------------------------------------------------------
WRIGHT U.S. TREASURY NEAR TERM FUND --
<S> <C> <C> <C> <C>
Sales.................................................... 2,441,530 $ 25,160,683 2,507,050 $ 25,756,963
Issued to shareholders in payment of
distributions declared................................. 198,242 2,045,751 657,890 6,744,268
Redemptions.............................................. (2,553,629) (26,334,570) (10,814,467) (110,894,862)
---------- ------------- ---------- -------------
Net increase (decrease).............................. 86,143 $ 871,864 (7,649,527) $(78,393,631)
========== ============= ========== ============
WRIGHT U.S. TREASURY FUND --
Sales.................................................... 2,928,057 $ 39,765,218 111,589 $ 1,478,738
Issued to shareholders in payment
of distributions declared.............................. 29,461 399,926 41,352 557,152
Redemptions.............................................. (310,916) (4,248,696) (482,923) (6,531,999)
---------- ------------- ---------- -------------
Net increase (decrease).............................. 2,646,602 $ 35,916,448 (329,982) $ (4,496,109)
========== ============= ========== ============
WRIGHT TOTAL RETURN BOND FUND --
Sales.................................................... 714,708 $ 8,887,057 1,710,110 $ 21,132,654
Issued to shareholders in payment
of distributions declared.............................. 149,121 1,860,449 470,132 5,784,061
Redemptions.............................................. (1,371,779) (17,016,228) (5,380,600) (65,580,321)
---------- ------------- ---------- -------------
Net decrease......................................... (507,950) $ (6,268,722) (3,200,358) $(38,663,606)
========== ============= ========== ============
WRIGHT CURRENT INCOME FUND --
Sales.................................................... 809,410 $ 8,404,603 796,965 $ 8,232,880
Issued to shareholders in payment
of distributions declared.............................. 120,851 1,257,455 397,997 4,102,611
Redemptions.............................................. (867,550) (9,034,515) (3,646,704) (37,720,363)
---------- ------------- ---------- -------------
Net increase (decrease).............................. 62,711 $ 627,543 (2,451,742) $(25,384,872)
========== ============= ========== ============
</TABLE>
<PAGE>
(6) INVESTMENT TRANSACTIONS
The Trust invests primarily in debt securities. The ability of the issuers
of the debt securities held by the Trust to meet their obligations may be
affected by economic developments in a specific industry or municipality.
Purchases and sales and maturities of investments, other than short-term
obligations, were as follows:
<TABLE>
<CAPTION>
Six Months Ended June 30,1996
- ----------------------------------------------------------------------------------------------------------------------------------
Wright U.S. Treasury Wright U.S. Treasury Wright U.S. Wright Total Wright Current
Money Market Fund Near Term Fund Treasury Fund Return Bond Fund Income Fund
- ----------------------------------------------------------------------------------------------------------------------------------
Purchases --
<S> <C> <C> <C> <C> <C>
Non-U.S. Gov't Obligations.. $ -- $ -- $ -- $ -- $ --
============= ============= ============= ============= =============
U.S. Gov't Obligations...... $ 121,075,338 $ 20,692,773 $ 49,641,961 $ 46,310,289 $ 5,012,213
============= ============= ============= ============= =============
Sales --
Non-U.S. Gov't Obligations.. $ -- $ -- $ -- $ 8,744,467 $ --
============= ============= ============= ============= =============
U.S. Gov't Obligations...... $ 116,795,618 $ 8,710,180 $ 12,971,966 $ 42,773,115 $ --
============= ============= ============= ============= =============
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(7) FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES
The cost and unrealized appreciation (depreciation) in value of the
investments owned at June 30, 1996, as computed on a federal income tax basis,
are as follows:
<TABLE>
<CAPTION>
Wright U.S. Treasury Wright U.S. Wright Total Wright Current
Near Term Fund Treasury Fund Return Bond Fund Income Fund
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Aggregate cost................................... $138,760,193 $ 49,249,152 $107,981,857 $ 65,944,372
============= ============= ============= =============
Gross unrealized appreciation.................... $ 1,562,458 $ 92,207 $ 1,243,258 $ 617,497
Gross unrealized depreciation.................... (789,492) (562,657) (2,946,466) (2,118,898)
-------------- -------------- -------------- --------------
Net unrealized appreciation (depreciation).. $ 772,966 $ (470,450) $ (1,703,208) $ (1,501,401)
============= ============= ============= =============
</TABLE>
(8) LINE OF CREDIT
The Trust participates with other funds managed by Wright in a line of
credit with a bank which allows the Funds to borrow up to $20,000,000
collectively. The line of credit consists of a $10,000,000 committed facility
and a $10,000,000 uncommitted facility. Interest is charged to each fund based
on its borrowings, at a rate equal to the bank's base rate. In addition, the
funds pay a commitment fee computed at a rate of 1/4 of 1% of $10,000,000 less
the value of any borrowing. The Trust did not have any borrowing as of June 30,
1996.
<PAGE>
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Description of art work on back cover of report.
Three vertical stripes on right side of page. One blue, one green and one red.
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THE WRIGHT MANAGED
EQUITY TRUST
THE WRIGHT MANAGED
INCOME TRUST
SEMI-ANNUAL
REPORTS
OFFICERS AND TRUSTEES OF THE FUNDS
Peter M. Donovan, President and Trustee
H. Day Brigham, Jr., Vice President , Secretary and Trustee
A. M. Moody III, Vice President and Trustee
Judith R. Corchard, Vice President
Winthrop S. Emmet, Trustee
Leland Miles, Trustee
Lloyd F. Pierce, Trustee
George R. Prefer, Trustee
Raymond Van Houtte, Trustee
James L. O'Connor, Treasurer
William J. Austin, Jr., Assistant Treasurer
ADMINISTRATOR
Eaton Vance Management
24 Federal Street
Boston, Massachusetts 02110
INVESTMENT ADVISER
Wright Investors' Service
1000 Lafayette Boulevard
Bridgeport, Connecticut 06604
PRINCIPAL UNDERWRITER
Wright Investors' Service Distributors, Inc.
1000 Lafayette Boulevard
Bridgeport, Connecticut 06604
CUSTODIAN
Investors Bank & Trust Company
89 South Street
Boston, Massachusetts 02111
TRANSFER AND DIVIDEND DISBURSING AGENT
First Data Investor Services Group
Wright Managed Investment Funds
P.O. Box 1559
Boston, Massachusetts 02104
This report is not authorized for use as an offer of sale or a solicitation of
an offer to buy shares of a mutual fund unless accompanied or preceded by a
Fund's current prospectus.
