- -------------------------------------------------------------------------------
Description of art work on the front cover of the report
Three thin vertical green lines on the right side of the page.
- -------------------------------------------------------------------------------
ANNUAL
REPORT
DECEMBER 31, 1995
WRIGHT
U.S. TREASURY
MONEY MARKET
FUND
THE WRIGHT MANAGED
INVESTMENT FUNDS
WRIGHT U.S. TREASURY
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.
TABLE OF CONTENTS
===============================================================================
INVESTMENT
OBJECTIVES..................Inside Front Cover
LETTER TO
SHAREHOLDERS................................ 1
WRIGHT U.S. TREASURY MONEY MARKET FUND
Monthly Net Income Per Share................ 2
Portfolio of Investments.................... 3
Financial Statements........................ 4
<PAGE>
WRIGHT U.S. TREASURY MONEY MARKET FUND
===============================================================================
February 1996
Dear Shareholders:
The Wright U.S. Treasury Money Market Fund (WTMM) had a 1.3% total return
for the fourth quarter of 1995, matching the return of the average Treasury
money market fund. For all of 1995, the Fund's return was 5.3%, also in line
with the average money market fund's performance. WTMM, which holds only
short-term U.S. Treasury securities, had an average maurity of 89 days at the
end of the fourth quarter, up from 75 days three months earlier.
Three-month Treasury bill rates declined by 33 basis points in the final quarter
of 1995. Much of the decline came late in the quarter following the Federal
Reserve's 25 basis-point cut in the fed funds rate. With the economy clearly
slowing in the fourth quarter and into early 1996, Wright expects the Fed to
ease further early in 1996, by as much as 75 basis points; lower returns on
short-term securities appear likely.
It should be understood that performance data quoted above represents past
performance which is not predictive of future performance and that the
investment return of a money market fund fluctuates on a daily basis.
Sincerely,
Peter M. Donovan
President
<PAGE>
WRIGHT U.S. TREASURY MONEY MARKET FUND -- 1995
==============================================================================
<TABLE>
<CAPTION>
MONTHLY CUMULATIVE ANNUALIZED INVESTMENT RETURN
MONTH NET INCOME RETURN ______________________________________
ENDING PER SHARE PER SHARE (a) 1 Month 3 Month Cumulative
- -------------------------------------------------------------------------------------------------------------------------
$1,000.00
<S> <C> <C> <C> <C> <C>
Jan. 31 $0.004187833 1,004.19 4.93% 4.93%
Feb. 28 0.003954237 1,008.16 5.15% 5.05%
Mar. 31 0.004495298 1,012.69 5.29% 5.15% 5.15%
Apr. 30 0.004486644 1,017.23 5.46% 5.33% 5.24%
May 31 0.004575083 1,021.89 5.39% 5.40% 5.29%
Jun. 30 0.004443119 1,026.43 5.41% 5.44% 5.33%
Jul. 31 0.004539099 1,031.09 5.34% 5.40% 5.35%
Aug. 31 0.004461950 1,035.69 5.25% 5.36% 5.36%
Sep. 30 0.004266125 1,040.11 5.19% 5.29% 5.36%
Oct. 31 0.004355057 1,044.64 5.13% 5.21% 5.36%
Nov. 30 0.004144636 1,048.97 5.04% 5.14% 5.35%
Dec. 31 0.004214358 1,053.39 4.96% 5.07% 5.34%
----------
Total $0.052123439
(a): Assumes reinvestment of monthly dividends.
</TABLE>
<PAGE>
WRIGHT U.S. TREASURY MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1995
===============================================================================
<TABLE>
Face Interest Maturity
Amount Issuer Rate Date Value
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 200,000 U. S. Treasury Bills 5.240% 01/25/96 $ 199,301
100,000 U. S. Treasury Bills 5.200% 01/25/96 99,653
600,000 U. S. Treasury Bills 5.210% 01/25/96 597,915
3,500,000 U. S. Treasury Bills 4.700% 02/01/96 3,485,835
1,200,000 U. S. Treasury Bills 5.350% 02/15/96 1,191,975
2,300,000 U. S. Treasury Bills 5.270% 02/22/96 2,282,491
5,250,000 U. S. Treasury Bills 5.310% 02/29/96 5,204,312
950,000 U. S. Treasury Bills 5.280% 03/07/96 940,804
400,000 U. S. Treasury Bills 5.310% 03/07/96 396,106
1,150,000 U. S. Treasury Bills 5.295% 03/07/96 1,138,837
5,500,000 U. S. Treasury Bills 4.760% 03/07/96 5,452,003
2,400,000 U. S. Treasury Bills 5.340% 03/14/96 2,374,012
1,000,000 U. S. Treasury Bills 5.300% 03/14/96 989,253
3,800,000 U. S. Treasury Bills 5.350% 03/28/96 3,750,869
300,000 U. S. Treasury Bills 5.300% 04/04/96 295,848
400,000 U. S. Treasury Bills 5.260% 04/04/96 394,506
900,000 U. S. Treasury Bills 5.270% 04/04/96 887,616
200,000 U. S. Treasury Bills 5.240% 04/04/96 197,264
300,000 U. S. Treasury Bills 5.210% 04/04/96 295,919
1,600,000 U. S. Treasury Bills 5.315% 04/04/96 1,577,795
600,000 U. S. Treasury Bills 5.190% 04/04/96 591,869
3,500,000 U. S. Treasury Bills 5.000% 04/25/96 3,444,097
800,000 U. S. Treasury Bills 5.250% 05/09/96 784,950
600,000 U. S. Treasury Bills 5.270% 05/09/96 588,669
3,300,000 U. S. Treasury Bills 5.240% 05/09/96 3,238,037
1,400,000 U. S. Treasury Bills 5.220% 05/16/96 1,372,392
300,000 U. S. Treasury Bills 5.190% 05/16/96 294,118
400,000 U. S. Treasury Bills 5.120% 05/16/96 392,263
2,000,000 U. S. Treasury Bills 5.180% 05/30/96 1,956,833
200,000 U. S. Treasury Bills 5.210% 05/30/96 195,658
250,000 U. S. Treasury Bills 5.230% 05/30/96 244,552
800,000 U. S. Treasury Bills 5.220% 05/30/96 782,600
----------
TOTAL INVESTMENTS
AT AMORTIZED COST -- 99.5% $45,638,352
Other Assets, less Liabilities -- 0.5% 250,595
----------
Net Assets -- 100.0% $45,888,947
===========
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT U.S. TREASURY MONEY MARKET FUND
===============================================================================
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1995
- -------------------------------------------------------------------------------
ASSETS:
<S> <C>
Investments, at amortized cost and value
(Note 1A).................................... $45,638,352
Cash............................................ 237,761
Receivable for Fund shares sold................. 195,080
Deferred organizational costs (Note 1D)......... 5,440
----------
Total Assets................................. $46,076,633
LIABILITIES:
Payable for Fund shares reacquired.... $121,922
Payable to dividend disbursing agent.. 52,032
Investment Adviser fee payable........ 4,916
Custodian fee payable................. 3,100
Trustees' fees payable................ 250
Accrued expenses and other liabilities 5,466
--------
Total Liabilities.................. 187,686
-----------
NET ASSETS (Consisting of paid-in capital)...... $45,888,947
===========
Net Asset Value, Offering Price, and Redemption
Price Per Share ($45,888,947 / 45,888,947 shares
of beneficial interest outstanding).......... $1.00
===========
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1995
- -------------------------------------------------------------------------------
INVESTMENT INCOME:
<S> <C>
Interest income (Note 1B)........................$ 2,632,668
-----------
Expenses --
Investment Adviser fee (Note 3)....... $162,732
Administrator fee (Note 3)............ 32,543
Compensation of Trustees not affiliated with
the Investment Adviser or Administrator.. 1,563
Custodian fee (Note 3)................ 42,735
Audit and legal....................... 22,068
Registration costs.................... 15,385
Transfer & dividend disbursing agent
fees ................................ 10,284
Shareholder communication expense..... 5,774
Amortization of organization costs(Note 1D)4,630
Printing.............................. 2,611
Miscellaneous......................... 2,526
--------
Total expenses...................... $302,851
--------
Deduct --
Reduction of Investment Adviser
fee (Note 3)......................... $ 87,656
Reduction of Custodian fee (Note 3)... 5,959
--------
Total deductions.................... $ 93,615
--------
Net expenses................................... 209,236
-----------
Net investment income..........................$ 2,423,432
===========
</TABLE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
- -------------------------------------------------------------------------------
Year Ended December 31
1995 1994
-----------------------------
FROM OPERATIONS:
<S> <C> <C>
Net investment income.................................................................. $ 2,423,432 $ 1,697,224
------------ ------------
DIVIDENDS DECLARED FROM NET INVESTMENT INCOME (Note 2).................................... $ (2,423,432) $ (1,697,224)
------------ ------------
FROM FUND SHARE (PRINCIPAL) TRANSACTIONS AT NET ASSET VALUE OF $1.00 PER SHARE
(Note 4):
Proceeds from sale of shares........................................................... $217,876,175 $204,314,264
Net asset value of shares issued to shareholders in connection with the merger of
Wright Managed Money Market Fund (Note 7)............................................ -- 16,981,815
Net asset value of shares issued to shareholders in payment of dividends declared...... 1,823,063 1,121,380
Cost of shares reacquired.............................................................. (242,687,133) (164,551,690)
------------ ------------
Increase (decrease) in net assets from Fund share transactions....................... $(22,987,895) $ 57,865,769
------------ ------------
Net increase (decrease) in net assets.............................................. $(22,987,895) $ 57,865,769
NET ASSETS:
Beginning of year...................................................................... 68,876,842 11,011,073
------------ ------------
End of year............................................................................ $ 45,888,947 $ 68,876,842
============= =============
</TABLE>
See notes to financial statements.
<PAGE>
WRIGHT U.S. TREASURY MONEY MARKET FUND
===============================================================================
<TABLE>
<CAPTION>
Year Ended December 31,
-------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1995 1994 1993 1992 1991(2)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value -- beginning of period......... $1.00 $1.00 $1.00 $1.00 $1.00
Income from Investment Operations:
Net investment income(1) .................. 0.05212 0.03494 0.02503 0.03221 0.02526
Less Distributions:
From net investment income.................. (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
========= ========= ========= ========= =========
Total Return(4)................................ 5.34% 3.55% 2.53% 3.27% 5.06%(3)
Ratios/Supplemental Data:
Net assets, end of year (000 omitted)....... $45,889 $68,877 $11,011 $13,856 $15,233
Ratio of net expenses to average daily
net assets................................ 0.46%(5) 0.45% 0.45% 0.46% 0.25%(3)
Ratio of net investment income to average daily
net assets................................ 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,
-------------------------------------------------------------
1995 1994 1993 1992 1991(2)
- ---------------------------------------------------------------------------------------------------------------------------
Net investment income per share................ $0.05120 $0.03253 $0.01977 $0.02958 $0.02159
========= ========= ========= ========= =========
Ratios (As a percentage of average daily net assets):
Expenses.................................... 0.65% 0.71% 0.97% 0.72% 0.97%(3)
========= ========= ========= ========= =========
Net investment income ...................... 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%.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT U.S. TREASURY MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS
===============================================================================
(1) SIGNIFICANT ACCOUNTING POLICIES
Wright U.S. Treasury Money Market Fund (the Fund) is a series of The Wright
Managed Income Trust (the Trust) and 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 Fund in the preparation of its financial
statements. The policies are in conformity with generally accepted accounting
principles.
A. Valuation of Investments -- Money market instruments are valued at
amortized cost, which the Trustees have determined in good faith
constitutes fair value. The Fund'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) on the investments of the Fund, accrued ratably to the
date of maturity plus or minus net realized gain or loss, if any,
on investments.
C. Federal Taxes -- The Fund's policy is to comply with the
provisions of the Internal Revenue Code available to regulated
investment companies and distribute to shareholders each year all
of its taxable income. Accordingly, no provision for federal
income or excise tax is necessary.
D. Deferred Organization Costs -- Costs incurred by the Fund in
connection with its organization are being amortized on a
straight-line basis through June 1996.
E. Other -- Investment transactions are accounted for on the date the
investments are purchased or sold.
(2) DIVIDENDS
The net investment income of the Fund is determined daily, and all of the
net investment income so determined is declared as a dividend to shareholders of
record at the time of such determination. Dividends are distributed monthly in
the form of additional shares of the Fund or, at the election of the
shareholder, in cash, on the payable date.
(3) INVESTMENT ADVISER AND ADMINISTRATOR FEES AND OTHER TRANSACTIONS
WITH AFFILIATES
The Fund has engaged Wright Investors' Service (Wright) to perform
investment management, investment advisory, and other services. For its
services, Wright is compensated based on a percentage of average daily net
assets which rate is adjusted as average daily net assets exceed certain levels.
<PAGE>
For the year ended December 31, 1995, the effective annual rate was 0.35%. To
enhance the net income of the Fund, Wright reduced its investment adviser fee by
$87,656. The Fund has also engaged Eaton Vance Management (Eaton Vance) to act
as administrator of the Fund. Under the Administration Agreement, Eaton Vance is
responsible for managing the business affairs of the Fund and is compensated
based on a percentage of average daily net assets which rate is reduced as
average daily net assets exceed certain levels. For the year ended December 31,
1995, the effective annual rate was 0.07%. The custodian fee was paid to
Investors Bank & Trust Company (IBT) for its services as custodian to the Fund.
Prior to November 10, 1995, IBT was an affiliate of Eaton Vance. Pursuant to the
custodian agreement, IBT receives a fee reduced by credits which are determined
based on the average daily cash balances the Fund maintains with IBT. All
significant credits are reported as a reduction of expenses in the Statement of
Operations.
Certain of the Trustees and officers of the Trust are directors/trustees and/or
officers of the above organizations. Except as to Trustees who are not
affiliated with Wright or Eaton Vance, Trustees and officers receive
remuneration for their services to the Fund out of the fees paid to Wright or
Eaton Vance.
(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).
(5) INVESTMENTS
Purchases and sales and maturities of investments aggregated $297,818,179
and $319,229,911, respectively.
(6) LINE OF CREDIT
The Fund participates with other funds managed by Wright in a line of
credit with a bank which allows the Funds to borrow up to $20,000,000
collectively. The line of credit consists of a $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 under the line of credit during the year ended December 31, 1995.
(7) ACQUISITION OF WRIGHT MANAGED MONEY MARKET FUND
On March 30, 1994, the Fund acquired the net assets of Wright Managed Money
Market Fund pursuant to a plan of reorganization dated March 28,1994 and
approved by the shareholders of both funds. The acquisition was accomplished by
a tax-free exchange of 16,981,815 shares of Wright Managed Money Market Fund for
the same number of shares of Wright U.S. Treasury Money Market Fund. The
aggregate net assets of the Fund immediately after the acquisition was
$40,883,041.
<PAGE>
INDEPENDENT AUDITORS' REPORT
===============================================================================
To the Trustees and Shareholders of
The Wright Managed Income Trust:
We have audited the accompanying statement of assets and liabilities, including
the portfolio of investments, of Wright U.S. Treasury Money Market Fund (one of
the series constituting The Wright Managed Income Trust) as of December 31,
1995, and the related statement of operations for the year then ended, the
statements of changes in net assets for the years ended December 31, 1995 and
1994, and the financial highlights for each of the years in the five-year period
ended December 31, 1995. These financial statements and financial highlights are
the responsibility of the Trust's management. Our responsibility is to express
an opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of the securities owned at
December 31, 1995, by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of Wright U.S. Treasury
Money Market Fund series of The Wright Managed Income Trust as of December 31,
1995, the results of its operations, the changes in its net assets, and its
financial highlights for the respective stated periods in conformity with
generally accepted accounting principles.
DELOITTE & TOUCHE, LLP
Boston, Massachusetts
February 2, 1996
<PAGE>
- -------------------------------------------------------------------------------
Description of art work on the back cover of the report
Three thin vertical green lines on the right side of the page.
- -------------------------------------------------------------------------------
THE WRIGHT
U.S. TREASURY
MONEY MARKET FUND
ANNUAL
REPORT
OFFICERS AND TRUSTEES OF THE FUNDS
Peter M. Donovan, President and Trustee
H. Day Brigham, Jr., Vice President, Secretary and Trustee
A. M. Moody III, Vice President and Trustee
Judith R. Corchard, Vice President
Winthrop S. Emmet, Trustee
Leland Miles, Trustee
Lloyd F. Pierce, Trustee
George R. Prefer, Trustee
Raymond Van Houtte, Trustee
James L. O'Connor, Treasurer
William J. Austin, Jr., Assistant Treasurer
ADMINISTRATOR
Eaton Vance Management
24 Federal Street
Boston, Massachusetts 02110
INVESTMENT ADVISER
Wright Investors' Service
1000 Lafayette Boulevard
Bridgeport, Connecticut 06604
PRINCIPAL UNDERWRITER
Wright Investors' Service Distributors, Inc.
1000 Lafayette Boulevard
Bridgeport, Connecticut 06604
CUSTODIAN
Investors Bank & Trust Company
89 South Street
Boston, Massachusetts 02111
TRANSFER AND DIVIDEND DISBURSING AGENT
First Data Investor Services Group
Wright Managed Investment Funds
P.O. Box 1559
Boston, Massachusetts 02104
INDEPENDENT AUDITORS
Deloitte & Touche LLP
125 Summer Street
Boston, Massachusetts 02110
This report is not authorized for use as an offer of sale or a solicitation of
an offer to buy shares of a mutual fund unless accompanied or preceded by a
Fund's current prospectus.
