- -------------------------------------------------------------------------------
Description of the art work on the front cover of the report
Three thin vertical red lines on the right side of the page.
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ANNUAL
REPORT
DECEMBER 31, 1995
THE WRIGHT
MANAGED
INCOME TRUST
THE WRIGHT MANAGED
INVESTMENT FUNDS
<PAGE>
THE WRIGHT MANAGED
INVESTMENT FUNDS
===============================================================================
WRIGHT "TRUE BLUE CHIP" INVESTMENT FUNDS INCLUDE A DIVERSIFIED COLLECTION OF
PROFESSIONALLY MANAGED FIXED INCOME VEHICLES INTENDED FOR INVESTMENT PORTFOLIO
USE. 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), STRATEGIES CAN BE ALTERED WITHOUT INCURRING ANY SALES CHARGES, AS
DESIRED TO ADJUST TO CHANGING MARKET CONDITIONS OR CHANGING REQUIREMENTS.
FIVE FIXED-INCOME FUNDS
THERE ARE FIVE FIXED-INCOME PORTFOLIOS OF BONDS AND OTHER DEBT SECURITIES, EACH
OF WHICH HAS A DIFFERENT INVESTMENT OBJECTIVE AND DIFFERENT INVESTMENT POLICIES.
INVESTORS MAY SELECT ANY OF THE PORTFOLIOS OR MAY SPREAD THEIR INVESTMENTS AMONG
MORE THAN ONE.
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 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 TOTAL RETURN BOND FUND (WTRB) is a diversified portfolio of quality
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 INSURED TAX-FREE BOND FUND (WTFB) is a diversified portfolio invested in
high-grade municipal bonds and other intermediate or long-term debt securities
that provide current interest income which is exempt from Federal income taxes.
The portfolio limits its investments to obligations exempt from Federal income
tax which at the time of purchase are insured as to principal and interest. The
portfolio will have an average weighted maturity that produces the best
compromise between generous return and stability of principal. 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.
TABLE OF CONTENTS
===============================================================================
INVESTMENT
OBJECTIVES.....................Inside Front Cover
LETTER TO
SHAREHOLDERS................................... 1
WRIGHT MANAGED INCOME FUNDS --
Dividend Distributions....................... 5
WRIGHT U.S. TREASURY
FUND (WUSTB) --
Portfolio of Investments..................... 7
Financial Statements......................... 8
WRIGHT U.S. TREASURY
NEAR TERM FUND (WNTB) --
Portfolio of Investments.................... 11
Financial Statements.........................12
WRIGHT TOTAL RETURN
BOND FUND (WTRB) --
Portfolio of Investments.....................15
Financial Statements.........................18
WRIGHT INSURED TAX FREE
BOND FUND (WTFB) --
Portfolio of Investments.....................21
Financial Statements.........................24
WRIGHT CURRENT
INCOME FUND (WCIF) --
Portfolio of Investments.....................27
Financial Statements.........................32
<PAGE>
REPORT TO SHAREHOLDERS
===============================================================================
WRIGHT U.S. TREASURY FUND
The Wright U.S. Treasury Fund (WUSTB) earned a 7.4% total investment return in
the fourth quarter of 1995, double the 3.6% return reported for the Lipper
Fixed-Income Fund average. For all of 1995, the WUSTB had a total investment
return of 28.2%. Over the past ten years, it has averaged a 10.2% annual rate of
return, comparing favorably with the 8.1% annual rate of return in the Lipper
Bond Fund average.
As its name suggests, the U.S. Treasury Fund holds U.S. Treasury securities
exclusively. At the end of 1995, average yield to maturity was 6.2%, down from
6.8% on September 30. Currently, Fund holdings have an average maturity of 18.9
years and an average duration of 10.1 years, down slightly from 19.2 years and
10.2 years, respectively, at September 30. Treasury yields in the 20-year
maturity range declined about 60 basis points over the course of the fourth
quarter of 1995.
Wright believes that a resolution of the budget impasse in Washington and
additional Fed easing would clear the way for a further reduction in long-term
interest rates, although of a smaller magnitude than the decline seen in 1995.
With inflation not expected to exceed 3% any time soon and further Federal
Reserve easing likely early in 1996, long-term bond yields could decline another
25-50 basis points over the course of 1996, in Wright's view.
WRIGHT TOTAL RETURN BOND FUND
After a temporary bout of weakness in the third quarter, the bull market in
bonds resumed in the final period of 1995, with yields on 10-year U.S. Treasury
bonds declining 60 basis points to 26-month lows. Declining interest rates
propelled the Wright Total Return Bond Fund (WTRB) to an investment return of
5.7% for the fourth quarter, one-to-two percentage points above the Lehman
Government/Corporate Bond average (4.7%) and the Lipper Fixed-Income Fund
average (3.6%).
The strong fourth quarter brought the return on the WTRB for all of 1995 to
22.0%, well above the 15.2% return for the Lipper Fixed-Income Fund average. For
the five years through December 1995, the WTRB Fund's 9.4% average compound
annual rate of total investment return is nominally ahead of the Lipper Fund
average return. Since it began in July 1983, the Wright Total Return Bond Fund
has averaged a 10.5% annual rate of total investment return, more than one
percentage point ahead of the 9.2% return for the average Lipper Bond Fund over
the same period.
At the end of 1995, WTRB Fund's holdings consisted of 49% U.S. Treasury
securities, 12% U.S. government agencies and 39% high-quality corporate bonds.
The Fund's average maturity was moved up to 11.4 years over the fourth quarter
from 9.9 years at the end of the third quarter, while duration climbed to 7.5
years from 6.8 years. At December 31, 1995, WTRB's average yield to maurity was
6.0%, versus 6.5% three months earlier.
<PAGE>
WRIGHT U.S. TREASURY NEAR TERM FUND
Yields on Treasury securities in the two-to-three year maturity range declined
nearly 70 basis points during the fourth quarter of 1995. The Wright U.S.
Treasury Near Term Fund (WNTB), with an average maturity of 2.5 years at the end
of 1995 (down from 2.8 years three months earlier), saw its average yield to
maturity decline to 5.3% from 5.9%. The WNTB Fund earned a total return of 2.6%
in the final quarter of the year, bringing its full-year return to 11.9%. Since
inception in 1983, it has averaged an 8.5% annual rate of total return. At the
end of the fourth quarter, 75% of WNTB's holdings were U.S. Treasury securities
and 25% were government agency issues.
Wright believes that the Federal Reserve, having reduced interest rates twice
during 1995, will continue to ease monetary policy in early 1996, resulting in
further declines in short-term interest rates. While returns on near-term bonds
are likely to exceed those on Treasury bills in the year ahead, they are not
likely to match those earned in 1995.
WRIGHT CURRENT INCOME FUND
Mortgage rates declined over 50 basis points during the fourth quarter of 1995
and over 200 basis points for the full year. As a result of these declines, the
Wright Current Income Fund (WCIF) had total returns of 3.4% in the final quarter
of 1995 (versus 3.6% estimated for the Morningstar Government Mortgage Fund
average) and 17.5% for all of 1995 (15.7% for the Morningstar average).
The Wright Current Income Fund, which pays its dividend monthly, had a current
yield of 6.5% at the end of 1995, down from 6.6% at September 30. With inflation
not likely to get much above 3% in the near future, the Fund's yield, along with
its stability, are attractive for income-oriented investors, in Wright's view.
WCIF holds only mortgage-backed securities (Ginnie Maes) backed by the full
faith and credit of the U.S. government; it does not hold any derivative
securities.
WRIGHT INSURED TAX FREE BOND FUND
The Wright Insured Tax Free Bond Fund (WTFB) holds AAA-insured tax-exempt
municipal securities. For the three months through December 1995, WTFB had a
total return of 2.1%, compared with a 4.2% return estimated for the average
insured tax free bond fund. For all of 1995, WTFB's 11.6% return compares with
15.1% for the average tax exempt fund. WTFB's average annual rate of return
since inception in April 1985 is 7.2%, as compared with 8.4% for the average
insured tax free bond fund over the same period. At December 31, the average
yield to maturity of WTFB holdings was 4.9%, versus 5.4% three months earlier;
the average maturity of Fund holdings was 8.4 years, little changed for the
quarter.
<PAGE>
It should be understood that performance data quoted herein represents past
performance and that the investment return and principal value of an investment
will fluctuate so that an investor's shares, when redeemed, may be worth more or
less than their original cost.
Sincerely,
Peter M. Donovan
President
February 1996
<TABLE>
WRIGHT MANAGED INCOME TRUST - BOND FUNDS
WRIGHT U.S. TREASURY FUND
Growth of $10,000 invested 12/31/85 through 12/31/95
Annual Total Return
------------------------------------------
Lst 1 Yr Lst 5 Yrs Lst 10 Yrs
<S> <C> <C> <C>
Wright U.S. Treasury Fund +28.2% +11.3% +10.2%
Lehman Gov't/Corp Index +19.2% +9.8% +9.6%
Lipper Fixed Income Funds +15.2% +9.3% +8.1%
The cumulative total return of a U.S. $10,000 investment in the
WRIGHT U.S. TREASURY FUND on 12/31/85
would have grown to $26,448 by December 31, 1995.
</TABLE>
<TABLE>
The following plotting points are used for comparison in the total
investment return mountain chart.
Date Wright U.S. Lehman Gov't/Co Lipper Fixed
Treasury Fund Index Income Funds
--------------------------------------------------------------------
<S> <C> <C> <C>
12/31/85 $10,000 $10,000 $10,000
12/31/86 $11,991 $11,562 $11,270
12/31/87 $11,636 $11,827 $11,413
12/31/88 $12,520 $12,723 $12,316
12/31/89 $14,557 $14,535 $13,476
12/31/90 $15,478 $15,739 $14,050
12/31/91 $18,196 $18,276 $16,603
12/31/92 $19,482 $19,662 $17,910
12/31/93 $22,580 $21,831 $19,642
12/31/94 $20,633 $21,065 $18,998
12/31/95 $26,448 $25,119 $21,889
</TABLE>
<TABLE>
WRIGHT MANAGED INCOME TRUST - BOND FUNDS
WRIGHT U.S. TREASURY NEAR TERM FUND
Growth of $10,000 invested 12/31/85 through 12/31/95
Annual Total Return
-------------------------------------------
Lst 1 Yr Lst 5 Yrs Lst 10 Yrs
<S> <C> <C> <C>
Wright U.S. Treasury Near Term Fund +11.9% +7.1% +7.6%
Lehman Gov't/Corp Index +19.2% +9.8% +9.6%
Morningstar Gov't (1-5 Yrs) Funds e+11.4% e+6.7% e+7.4%
The cumulative total return of a U.S. $10,000 investment in the
WRIGHT U.S. TREASURY NEAR TERM FUND on 12/31/85
would have grown to $20,724 by December 31, 1995.
</TABLE>
<TABLE>
The following plotting points are used for comparison in the total
investment return mountain chart.
Date Wright U.S. Lehman Gov't/Corp Morningstar Gov't
Treasury Near Term Index (1-5 Yrs) Funds
----------------------------------------------------------------------------
<S> <C> <C> <C>
12/31/85 $10,000 $10,000 $10,000
12/31/86 $11,312 $11,562 $11,221
12/31/87 $11,576 $11,827 $11,549
12/31/88 $12,242 $12,723 $12,314
12/31/89 $13,609 $14,535 $13,644
12/31/90 $14,730 $15,739 $14,818
12/31/91 $16,656 $18,276 $16,760
12/31/92 $17,698 $19,662 $17,692
12/31/93 $19,106 $21,831 $18,774
12/31/94 $18,515 $21,065 $18,390
12/31/95 $20,724 $25,119 $20,484
</TABLE>
<PAGE>
<TABLE>
WRIGHT MANAGED INCOME TRUST - BOND FUNDS
WRIGHT TOTAL RETURN BOND FUND
Growth of $10,000 invested 12/31/85 through 12/31/95
Annual Total Return
------------------------------------------
Lst 1 Yr Lst 5 Yrs Lst 10 Yrs
<S> <C> <C> <C>
Wright Total Return Bond Fund +22.0% +9.4% +8.9%
Lehman Gov't/Corp Index +19.2% +9.8% +9.6%
Lipper Fixed Income Funds +15.2% +9.3% +8.1%
The cumulative total return of a U.S. $10,000 investment in the
WRIGHT TOTAL RETURN BOND FUND on 12/31/85 would have grown to $23,424
by December 31, 1995.
</TABLE>
<TABLE>
The following plotting points are used for comparison in the total
investment return mountain chart.
Date Wright Total Return Lehman Gov't/Co Lipper Fixed
Bond Fund Index Income Funds
--------------------------------------------------------------------
<C> <C> <C> <C>
12/31/85 $10,000 $10,000 $10,000
12/31/86 $12,054 $11,562 $11,270
12/31/87 $11,676 $11,827 $11,413
12/31/88 $12,522 $12,723 $12,316
12/31/89 $14,223 $14,535 $13,476
12/31/90 $14,976 $15,739 $14,050
12/31/91 $17,279 $18,276 $16,603
12/31/92 $18,510 $19,662 $17,910
12/31/93 $20,551 $21,831 $19,642
12/31/94 $19,205 $21,065 $18,998
12/31/95 $23,424 $25,119 $21,889
</TABLE>
<TABLE>
WRIGHT MANAGED INCOME TRUST - BOND FUNDS
WRIGHT TAX-FREE BOND FUND
Growth of $10,000 invested 12/31/85 through 12/31/95
Annual Total Return
------------------------------------------
Lst 1 Yr Lst 5 Yrs Lst 10 Yrs
<S> <C> <C> <C>
Wright Tax-Free Bond Fund +11.6% +7.0% +7.1%
Lehman Gov't/Corp Index +19.2% +9.8% +9.6%
Lehman Municipal Bond index +17.5% +8.6% +9.2%
The cumulative total return of a U.S. $10,000 investment in the
WRIGHT TAX-FREE BOND FUND on 12/31/85
would have grown to $19,871 by December 31, 1995.
</TABLE>
<TABLE>
The following plotting points are used for comparison in the total
investment return mountain chart.
Date Wright Tax-Free Lehman Gov't/Corp Lehman Municipal
Bond Fund Index Bond index
---------------------------------------------------------------------
<S> <C> <C> <C>
12/31/85 $10,000 $10,000 $10,000
12/31/86 $11,467 $11,562 $11,932
12/31/87 $11,726 $11,827 $12,111
12/31/88 $12,479 $12,723 $13,341
12/31/89 $13,366 $14,535 $14,779
12/31/90 $14,158 $15,739 $15,990
12/31/91 $15,646 $18,276 $17,784
12/31/92 $16,884 $19,662 $19,351
12/31/93 $18,554 $21,831 $21,729
12/31/94 $17,799 $21,065 $20,606
12/31/95 $19,871 $25,119 $24,202
</TABLE>
<TABLE>
WRIGHT MANAGED INCOME TRUST - BOND FUNDS
WRIGHT CURRENT INCOME FUND
Growth of $10,000 invested 4/30/87* through 12/31/95
Annual Total Return
---------------------------------------------
Lst 1 Yr Lst 5 Yrs Since Incept*
<S> <C> <C> <C>
Wright Current Income Fund +17.5% +8.3% +9.0%
Lehman Gov't/Corp Index +19.2% +9.8% +9.5%
Lehman Mtg-Backed index +16.8% +8.7% +9.6%
The cumulative total return of a U.S. $10,000 investment in the
WRIGHT CURRENT INCOME BOND FUND on 4/30/87
would have grown to $21,162 by December 31, 1995.
</TABLE>
<TABLE>
The following plotting points are used for comparison in the total
investment return mountain chart.
Date Wright Current Lehman Gov't/Corp Lehman Mtg-Backed
Income Fund Index Index
-----------------------------------------------------------------------
<S> <C> <C> <C>
04/30/87 $10,000 $10,000 $10,000
12/31/87 $10,416 $10,356 $10,500
12/31/88 $11,323 $11,141 $11,416
12/31/89 $12,925 $12,728 $13,169
12/31/90 $14,198 $13,782 $14,581
12/31/91 $16,372 $16,004 $16,873
12/31/92 $17,475 $17,217 $18,048
12/31/93 $18,626 $19,117 $19,283
12/31/94 $18,016 $18,446 $18,972
12/31/95 $21,162 $21,996 $22,160
<FN>
NOTES: *: For comparison with other averages, the investment results are
shown from the first month-end since the Fund's inception. The investment
results of Wright Fixed Income Funds, Lipper's average of 1520 Fixed Income
Funds and Morningstar's average of 111 Government General Funds with
average maturities of 1 to 5 years are net of all fees and expenses charged
to the Funds. No fees or expenses have been deducted from the Lehman Bond
Indices. The Total Investment Return is the % return of an initial $10,000
investment made at the beginning of the period to the ending redeemable
value assuming all dividends and distributions are reinvested. Past
performance is not predictive of future performance.
</FN>
</TABLE>
<PAGE>
<TABLE>
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 FUND (WUSTB)
- ------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
7/25/83 $10.00 100.000 $1,000.00
12/94 12.25 246.633 3,021.26 -8.66% 7.22% 10.05% 10.15%
1/95 12.47 $0.078287 0.006278 248.277 3,096.01 -8.47% 8.45% 10.01% 10.31%
2/95 12.75 0.068402 0.005335 249.601 3,182.41 -1.72% 9.16% 10.67% 10.50%
3/95 12.75 0.076666 0.006013 251.102 3,201.55 3.28% 9.35% 10.51% 10.47%
4/95 12.89 0.072035 0.005588 252.505 3,254.79 6.83% 10.22% 10.44% 10.55%
5/95 13.77 0.074356 0.005400 253.869 3,495.77 15.41% 10.86% 10.51% 11.14%
6/95 13.85 0.072657 0.005246 255.200 3,534.53 17.86% 10.63% 10.52% 11.16%
7/95 13.56 0.074606 0.005502 256.605 3,479.56 12.50% 10.08% 10.48% 10.93%
8/95 13.75 0.074154 0.005393 257.988 3,547.34 15.54% 11.43% 10.42% 11.03%
9/95 13.91 0.071874 0.005167 259.321 3,607.16 21.17% 11.52% 10.59% 11.10%
10/95 14.20 0.073676 0.005188 260.667 3,701.47 25.00% 11.62% 10.57% 11.26%
11/95 14.44 0.073766 0.005108 261.999 3,783.26 27.20% 11.24% 10.44% 11.38%
12/95 14.71 0.067219 0.004566 263.195 3,871.60 28.18% 11.31% 10.21% 11.51%
---------
Total $0.877698
</TABLE>
<TABLE>
THE INCOME TRUST -- WRIGHT U.S. TREASURY NEAR TERM FUND (WNTB)
- ---------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
7/25/83 $10.00 100.000 $1,000.00
12/94 9.92 249.659 2,476.61 -3.10% 6.35% 7.88% 8.25%
1/95 10.00 $0.051672 0.005167 250.975 2,509.75 -2.82% 6.80% 7.87% 8.31%
2/95 10.11 0.048232 0.004771 252.172 2,549.46 0.50% 7.08% 8.14% 8.40%
3/95 10.11 0.051589 0.005103 253.459 2,562.47 2.93% 7.18% 8.06% 8.39%
4/95 10.16 0.051314 0.005051 254.739 2,588.15 4.89% 7.45% 8.08% 8.42%
5/95 10.36 0.052921 0.005108 256.041 2,652.58 7.61% 7.54% 8.03% 8.58%
6/95 10.37 0.052615 0.005074 257.340 2,668.61 8.17% 7.43% 8.00% 8.57%
7/95 10.32 0.053425 0.005177 258.672 2,669.49 6.95% 7.15% 8.03% 8.51%
8/95 10.34 0.052851 0.005111 259.994 2,688.34 7.52% 7.38% 7.93% 8.52%
9/95 10.34 0.052174 0.005046 261.306 2,701.90 8.72% 7.32% 7.96% 8.50%
10/95 10.38 0.053507 0.005155 262.653 2,726.34 9.62% 7.27% 7.88% 8.52%
11/95 10.43 0.051860 0.004972 263.959 2,753.09 11.39% 7.17% 7.76% 8.55%
12/95 10.45 0.053142 0.005085 265.301 2,772.40 11.93% 7.07% 7.56% 8.55%
---------
Total $0.625302
</TABLE>
<TABLE>
THE INCOME TRUST -- WRIGHT TOTAL RETURN BOND FUND (WTRB)
- ---------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
7/25/83 $10.00 100.000 $1,000.00
12/94 11.43 249.141 2,847.68 -6.57% 6.19% 9.33% 9.58%
1/95 11.59 0.062608 0.005402 250.518 2,903.50 -6.13% 7.19% 9.18% 9.69%
2/95 11.83 0.061940 0.005236 251.829 2,979.14 -0.74% 7.78% 9.86% 9.87%
3/95 11.86 0.064429 0.005432 253.197 3,002.92 3.45% 8.01% 9.73% 9.87%
4/95 11.97 0.062814 0.005248 254.526 3,046.68 6.35% 8.74% 9.62% 9.93%
5/95 12.54 0.062217 0.004961 255.789 3,207.59 12.22% 9.03% 9.42% 10.34%
6/95 12.58 0.062061 0.004933 257.051 3,233.70 13.60% 8.78% 9.39% 10.34%
7/95 12.41 0.062429 0.005031 258.344 3,206.05 10.56% 8.36% 9.46% 10.18%
8/95 12.52 0.063063 0.005037 259.645 3,250.76 11.99% 9.34% 9.32% 10.23%
9/95 12.60 0.062361 0.004949 260.930 3,287.72 15.10% 9.44% 9.44% 10.26%
10/95 12.75 0.062736 0.004920 262.214 3,343.23 17.44% 9.48% 9.31% 10.34%
11/95 12.95 0.062342 0.004814 263.477 3,412.02 20.36% 9.35% 9.16% 10.45%
12/95 13.12 0.064282 0.004900 264.767 3,473.75 21.97% 9.36% 8.88% 10.53%
---------
Total $0.753282
</TABLE>
<PAGE>
<TABLE>
THE INCOME TRUST -- WRIGHT INSURED TAX-FREE BOND FUND (WTFB)
- -------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
4/9/85 $10.00 100.000 $1,000.00
12/94 11.02 170.912 1,883.45 -4.08% 5.89% -- 6.72%
1/95 11.11 $0.045820 0.004124 171.635 1,906.86 -3.95% 6.42% -- 6.80%
2/95 11.31 0.046146 0.004080 172.335 1,949.11 0.25% 6.63% -- 6.98%
3/95 11.37 0.044421 0.003907 173.008 1,967.10 4.36% 6.88% -- 7.02%
4/95 11.36 0.043871 0.003862 173.676 1,972.96 4.70% 7.11% -- 6.99%
5/95 11.55 0.044598 0.003861 174.347 2,013.71 6.42% 7.08% 7.09% 7.15%
6/95 11.49 0.043654 0.003799 175.009 2,010.86 6.46% 6.84% 7.08% 7.07%
7/95 11.56 0.044448 0.003845 175.682 2,030.89 5.79% 6.75% 7.20% 7.11%
8/95 11.63 0.043816 0.003767 176.344 2,050.88 6.60% 7.51% 7.35% 7.16%
9/95 11.63 0.044969 0.003867 177.026 2,058.81 8.07% 7.56% 7.62% 7.14%
10/95 11.70 0.043682 0.003734 177.687 2,078.94 10.12% 7.46% 7.46% 7.18%
11/95 11.76 0.043086 0.003664 178.338 2,097.26 12.83% 7.08% 7.26% 7.21%
12/95 11.75 0.042000 0.003575 178.976 2,102.96 11.64% 7.01% 7.11% 7.18%
---------
Total $0.530511
</TABLE>
<TABLE>
THE INCOME TRUST -- WRIGHT CURRENT INCOME FUND (WCIF)
- ------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
4/14/87 $10.00 100.000 $1,000.00
12/94 9.71 185.309 1,799.35 -3.30% 6.86% -- 7.91%
1/95 9.87 $0.059081 0.005986 186.466 1,840.42 -1.97% 7.54% -- 8.13%
2/95 10.08 0.059476 0.005900 187.566 1,890.67 1.68% 8.01% -- 8.42%
3/95 10.06 0.058751 0.005840 188.662 1,897.94 5.38% 8.06% -- 8.38%
4/95 10.15 0.058044 0.005719 189.741 1,925.87 7.82% 8.64% -- 8.49%
5/95 10.45 0.056515 0.005408 190.767 1,993.51 11.54% 8.70% -- 8.86%
6/95 10.45 0.056713 0.005427 191.802 2,004.33 12.75% 8.46% -- 8.84%
7/95 10.39 0.057078 0.005494 192.856 2,003.77 10.29% 8.13% -- 8.74%
8/95 10.45 0.057155 0.005469 193.910 2,026.36 11.45% 8.57% -- 8.79%
9/95 10.49 0.057370 0.005469 194.971 2,045.25 14.44% 8.61% -- 8.82%
10/95 10.51 0.057266 0.005449 196.033 2,060.31 15.77% 8.57% -- 8.82%
11/95 10.59 0.056816 0.005365 197.085 2,087.13 17.52% 8.37% -- 8.90%
12/95 10.67 0.056552 0.005300 198.130 2,114.04 17.46% 8.31% -- 8.97%
---------
Total $0.690817
</TABLE>
<PAGE>
<TABLE>
WRIGHT U.S. TREASURY FUND (WUSTB)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1995
===================================================================================================================================
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>
$ 1,500,000 U. S. Treasury Notes 8.500% 02/15/20 $130.656 $ 1,959,840 6.51% 6.06%
600,000 U. S. Treasury Bonds 11.625% 11/15/04 141.531 849,186 8.21% 5.61%
1,000,000 U. S. Treasury Bonds 10.000% 05/15/10 130.406 1,304,060 7.67% 6.66%
1,300,000 U. S. Treasury Bonds 14.000% 11/15/11 165.859 2,156,167 8.44% 7.04%
1,000,000 U. S. Treasury Bonds 11.250% 02/15/15 160.078 1,600,780 7.03% 5.95%
2,000,000 U. S. Treasury Bonds 7.250% 05/15/16 114.187 2,283,740 6.35% 6.04%
1,400,000 U. S. Treasury Bonds 7.500% 11/15/16 117.250 1,641,500 6.40% 6.03%
1,500,000 U. S. Treasury Bonds 8.125% 08/15/19 125.734 1,886,010 6.46% 6.06%
550,000 U. S. Treasury Bonds 7.875% 02/15/21 123.141 677,276 6.40% 6.08%
500,000 U. S. Treasury Bonds 6.500% 08/15/05 106.531 532,655 6.10% 5.61%
-----------
Total Investments (identified cost, $12,564,565) -- 98.3% $14,891,214 6.84% 6.13%
======= =======
Other Assets, less Liabilities -- 1.7% 265,030
-----------
Net Assets -- 100.0% $15,156,244
============
Average Maturity -- 18.8 Years(1)
<FN>
(1) Unaudited.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT U.S. TREASURY FUND
===============================================================================
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1995
- -------------------------------------------------------------------------------
<S> <C>
ASSETS:
Investments --
Identified cost........................ $ 12,564,565
Unrealized appreciation................ 2,326,649
------------
Total value (Note 1A)................ $ 14,891,214
Cash..................................... 50,383
Interest receivable...................... 243,021
Receivable for Fund shares sold.......... 34,098
------------
Total Assets........................... $ 15,218,716
------------
LIABILITIES:
Payable for Fund shares reacquired....... $ 5,166
Payable to dividend disbursing agent..... 36,101
Investment Adviser fee payable........... 15,256
Trustees' fees payable................... 250
Custodian fee payable.................... 2,500
Accrued expenses and other liabilities... 3,199
------------
Total Liabilities...................... $ 62,472
------------
NET ASSETS.................................. $ 15,156,244
============
NET ASSETS CONSIST OF:
Proceeds from sales of shares (including shares
issued to shareholders in payment of distributions
declared), less cost of shares redeemed.. $ 13,256,456
Accumulated net realized loss on investments
(computed on the basis of identified cost) (434,300)
Unrealized appreciation of investments (computed
on the basis of identified cost)......... 2,326,649
Undistributed net investment income......... 7,439
Net assets applicable to outstanding shares $ 15,156,244
============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING.............................. 1,030,135
============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST................... $14.71
============
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1995
- -------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME:
Interest Income (Note 1B)................ $ 1,219,456
------------
Expenses --
Investment Adviser fee (Note 3)........ $ 65,539
Administrator fee (Note 3)............. 16,384
Compensation of trustees not affiliated with
the Investment Adviser or Administrator 1,603
Distribution expenses (Note 4)......... 32,770
Custodian fee (Note 3)................. 34,697
Audit services......................... 23,583
Transfer and dividend disbursing agent fees 6,018
Shareholder communication expense...... 1,822
Registration costs..................... 15,140
Printing............................... 1,904
Legal services......................... 980
Miscellaneous.......................... 2,061
------------
Total expenses....................... $ 202,501
------------
Deduct --
Reduction of distribution expenses
by Principal Underwriter (Note 4)... $ 32,770
Reduction of Investment Adviser fee
(Note 3)............................ 17,515
Reduction of custodian fee (Note 3).. 4,754
------------
Total deductions..................... $ 55,039
------------
Net expenses......................... $ 147,462
------------
Net investment income.............. $ 1,071,994
------------
REALIZED AND UNREALIZED GAIN ON
INVESTMENTS:
Net realized gain on investment transactions
(identified cost basis)................ $ 529,670
Change in unrealized appreciation
of investments......................... 2,464,279
------------
Net realized and unrealized gain
on investments..................... $ 2,993,949
------------
Net increase in net assets
from operations.................... $ 4,065,943
============
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT U.S. TREASURY FUND
===============================================================================
Year Ended
December 31,
-------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS 1995 1994
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INREASE (DECREASE) IN NET ASSETS:
From operations --
Net investment income.................................................. $ 1,071,994 $ 1,439,454
Net realized gain on investment
transactions......................................................... 529,670 358,064
Change in unrealized appreciation
of investments....................................................... 2,464,279 (3,989,643)
------------ ------------
Increase (decrease) in net assets from operations................. $ 4,065,943 $ (2,192,125)
Distributions to shareholders from net investment income................... (1,072,005) (1,439,554)
Net decrease from Fund share transactions
(Note 5) .............................................................. (4,496,109) (9,556,034)
------------ ------------
Net decrease in net assets........................................ $ (1,502,171) $ (13,187,713)
NET ASSETS:
At beginning of year....................................................... 16,658,415 29,846,128
------------ ------------
At end of year............................................................. $ 15,156,244 $ 16,658,415
============= =============
UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED
IN NET ASSETS............................................................. $ 7,439 $ 7,444
============= =============
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT U.S. TREASURY FUND
===============================================================================================================================
Year Ended December 31,
-----------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1995 1994 1993 1992 1991
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......... $ 12.250 $ 14.360 $ 13.190 $ 13.220 $ 12.100
-------- -------- -------- -------- --------
Income (loss) from Investment Operations:
Net investment income(1)................. $ 0.880 $ 0.880 $ 0.892 $ 0.911 $ 0.902
Net realized and unrealized gain (loss)
on investments......................... 2.458 (2.110) 1.170 (0.030) 1.120
-------- -------- -------- -------- --------
Total income (loss)
from investment operations........... $ 3.338 $ (1.230) $ 2.062 $ 0.881 $ 2.022
-------- -------- -------- -------- --------
Less Distributions:
From net investment income............... $ (0.878) $ (0.880) $ (0.892) $ (0.911) $ (0.902)
-------- -------- -------- -------- --------
Net asset value, end of year................ $ 14.710 $ 12.250 $ 14.360 $ 13.190 $ 13.220
========= ========= ========= ========= =========
Total Return(2)............................. 28.18% (8.66%) 15.90% 7.07% 17.56%
Ratios/Supplemental Data:
Net assets, end of period (000 omitted).. $ 15,156 $ 16,658 $ 29,846 $ 29,703 $ 33,857
Ratio of net expenses to average net assets 0.9% 0.9% 0.9% 0.9% 0.9%
Ratio of net investment income to average
net assets............................. 6.6% 6.9% 6.3% 7.1% 7.4%
Portfolio Turnover Rate.................. 8% 1% 12% 15% 15%
<FN>
(1)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,
--------------------------------------------
1995 1994 1993 1992
- --------------------------------------------------------------------------------------------------------------
Net investment income per share............. $ 0.827 $ 0.854 $ 0.878 $ 0.898
========= ========= ========= =========
Ratios (As a percentage of average net assets):
Expenses .............................. 1.2% 1.1% 1.0% 1.0%
========= ========= ========= =========
Net investment income.................... 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.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT U.S. TREASURY NEAR TERM FUND (WNTB)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1995
===================================================================================================================================
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>
$ 7,000,000 U. S. Treasury Note 5.125% 03/31/98 $ 99.828 $ 6,987,960 5.13% 5.20%
2,000,000 U. S. Treasury Note 7.125% 10/15/98 104.812 2,096,240 6.80% 5.24%
3,000,000 U. S. Treasury Note 5.125% 12/31/98 99.656 2,989,680 5.14% 5.25%
3,450,000 U. S. Treasury Note 9.000% 05/15/98 108.281 3,735,695 8.31% 5.24%
2,000,000 U. S. Treasury Note 7.875% 11/15/99 108.719 2,174,380 7.24% 5.35%
2,000,000 U. S. Treasury Note 7.250% 11/15/96 101.656 2,033,120 7.13% 5.83%
2,100,000 U. S. Treasury Note 8.125% 02/15/98 105.750 2,220,750 7.68% 5.23%
2,000,000 U. S. Treasury Note 8.000% 08/15/99 108.656 2,173,120 7.36% 5.33%
1,500,000 U. S. Treasury Note 8.500% 02/15/00 111.437 1,671,555 7.63% 5.37%
3,000,000 U. S. Treasury Note 7.000% 04/15/99 105.062 3,151,860 6.66% 5.29%
2,000,000 U. S. Treasury Note 6.375% 01/15/99 103.109 2,062,180 6.18% 5.26%
3,000,000 U. S. Treasury Note 6.875% 03/31/97 101.969 3,059,070 6.74% 5.19%
5,000,000 U. S. Treasury Note 6.375% 06/30/97 101.656 5,082,800 6.27% 5.19%
7,000,000 U. S. Treasury Note 5.625% 08/31/97 100.641 7,044,870 5.59% 5.20%
6,500,000 U. S. Treasury Note 6.000% 11/30/97 101.469 6,595,485 5.91% 5.20%
1,500,000 U. S. Treasury Note 5.125% 06/30/98 99.797 1,496,955 5.14% 5.21%
2,000,000 U. S. Treasury Note 5.875% 08/15/98 101.578 2,031,560 5.78% 5.23%
20,000,000 U. S. Treasury Note 7.875% 04/15/98 105.594 21,118,800 7.46% 5.23%
12,500,000 U. S. Treasury Note 7.500% 11/15/01 110.141 13,767,625 6.81% 5.44%
2,000,000 U. S. Treasury Note 5.125% 03/31/96 99.969 1,999,380 5.13% 5.22%
12,000,000 U. S. Treasury Note 7.125% 02/29/00 106.453 12,774,360 6.69% 5.37%
5,000,000 Federal Home Loan Banks 8.250% 05/27/96 101.125 5,056,250 8.16% 5.38%
5,000,000 Federal Home Loan Banks 8.250% 06/25/96 101.359 5,067,950 8.14% 5.36%
5,500,000 Federal Home Loan Banks 8.000% 07/25/96 101.453 5,579,915 7.89% 5.36%
14,500,000 Federal Home Loan Banks 8.250% 09/25/96 102.016 14,792,320 8.09% 5.39%
1,150,000 Federal Home Loan Banks 8.600% 06/25/99 109.812 1,262,837 7.83% 5.47%
3,400,000 Federal Home Loan Banks 5.020% 11/16/98 99.115 3,369,910 5.06% 5.35%
----------- ------ ------
Total Investments (identified cost, $136,992,741) -- 98.5% $141,396,627 6.70% 5.31%
======= =======
Other Assets, Less Liabilities -- 1.5% 2,203,207
-----------
Net Assets -- 100.0% $143,599,834
============
Average Maturity -- 2.4 Years(1)
<FN>
(1) Unaudited.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT U.S. TREASURY NEAR TERM FUND
===============================================================================
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1995
- -------------------------------------------------------------------------------
<S> <C>
ASSETS:
Investments --
Identified cost........................ $136,992,741
Unrealized appreciation................ 4,403,886
------------
Total value (Note 1A)................ $141,396,627
Cash..................................... 22,110
Receivable for Fund shares sold.......... 400,984
Interest receivable...................... 2,367,652
------------
Total Assets........................... $144,187,373
------------
LIABILITIES:
Payable for Fund shares reacquired....... $ 248,595
Payable to dividend disbursing agent..... 325,844
Trustees' fees payable................... 250
Custodian fee payable.................... 4,500
Accrued expenses and other liabilities... 8,350
------------
Total Liabilities...................... $ 587,539
------------
NET ASSETS.................................. $143,599,834
============
NET ASSETS CONSIST OF:
Proceeds from sales of shares (including
shares issued to shareholders in payment of
distributions declared), less cost of shares
redeemed................................. $160,668,525
Accumulated net realized loss on investment
transactions (computed on the basis of
identified cost)......................... (21,682,260)
Unrealized appreciation of investments
(computed on the basis of identified cost) 4,403,886
Undistributed net investment income......... 209,683
Net assets applicable to outstanding shares $143,599,834
============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING.............................. 13,738,237
============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST................... $10.45
============
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1995
- -------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME:
Interest Income (Note 1B)................ $ 11,961,829
------------
Expenses --
Investment Adviser fee (Note 3)........ $ 739,265
Administrator fee (Note 3)............. 129,501
Compensation of trustees not affiliated with
the Investment Adviser or Administrator 2,170
Distribution expenses (Note 4)......... 347,507
Custodian fee (Note 3)................. 60,902
Transfer and dividend disbursing agent fees 14,130
Shareholder communication expense...... 22,064
Audit services......................... 30,983
Registration costs..................... 15,972
Printing............................... 1,992
Legal services......................... 1,579
Miscellaneous.......................... 7,245
------------
Total expenses....................... $ 1,373,310
Deduct --
Reduction of custodian fee........... 12,111
------------
Net expenses......................... $ 1,361,199
------------
Net investment income.............. $ 10,600,630
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Net realized loss on investment transactions
(identified cost basis)................ $ (376,568)
Change in unrealized appreciation
of investments......................... 10,227,881
------------
Net realized and unrealized gain
on investments..................... $ 9,851,313
------------
Net increase in net assets
from operations.................... $ 20,451,943
============
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT U.S. TREASURY NEAR TERM FUND
===============================================================================
Year Ended
December 31,
-----------------------------
STATEMENTS OF CHANGES IN NET ASSETS 1995 1994
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From operations --
Net investment income.................................................. $ 10,600,630 $ 16,679,095
Net realized loss on investment
transactions......................................................... (376,568) (6,936,070)
Change in unrealized appreciation
of investments....................................................... 10,227,881 (20,360,712)
--------------- ---------------
Increase (decrease) in net assets from operations................. $ 20,451,943 $ (10,617,687)
Distributions to shareholders from net investment income................... (10,580,700) (16,671,903)
Net decrease from Fund share transactions (Note 5)......................... (78,393,631) (141,505,123)
---------------- ---------------
Net decrease in net assets........................................ $ (68,522,388) $ (168,794,713)
NET ASSETS:
At beginning of year....................................................... 212,122,222 380,916,935
--------------- -------------
At end of year............................................................. $ 143,599,834 $ 212,122,222
============= =============
UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED
IN NET ASSETS............................................................. $ 209,683 $ 189,753
============= =============
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT U.S. TREASURY NEAR TERM FUND
==================================================================================================================================
Year Ended December 31,
---------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1995 1994 1993 1992 1991
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......... $ 9.920 $ 10.840 $ 10.660 $ 10.750 $ 10.260
-------- -------- -------- -------- --------
Income (loss) from Investment Operations:
Net investment income.................... $ 0.631 $ 0.588 $ 0.655 $ 0.739 $ 0.795
Net realized and unrealized gain (loss)
on investments......................... 0.524 (0.920) 0.180 (0.090) 0.489
-------- -------- -------- -------- --------
Total income (loss) from investment
operations........................... $ 1.155 $ (0.332) $ 0.835 $ 0.649 $ 1.284
-------- -------- -------- -------- --------
Less distributions from net investment income $ (0.625) $ (0.588) $ (0.655) $ (0.739) $ 0.794)
-------- -------- -------- -------- --------
Net asset value, end of year................ $ 10.450 $ 9.920 $ 10.840 $ 10.660 $ 10.750
========= ========= ========= ========= =========
Total Return(1)............................. 11.93% (3.10%) 7.95% 6.26% 13.08%
Ratios/Supplemental Data:
Net assets, end of year (000 omitted).... $143,600 $212,122 $ 380,917 $ 371,074 $232,407
Ratio of expenses to average net assets.. 0.8% 0.7% 0.7% 0.8% 0.8%
Ratio of net investment income to average
net assets............................. 6.2% 5.7% 6.0% 6.9% 7.7%
Portfolio Turnover Rate.................. 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.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT TOTAL RETURN BOND FUND (WTRB)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1995
==============================================================================================================================
Face Coupon Maturity Market Current Yield To
Amount Description Rate Date Price Value Yield(1) Maturity(1)
- ------------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS -- 38.4%
- ------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
FINANCIAL -- 3.7%
$ 1,500,000 GE Capital Corp 7.670% 05/22/02 $110.214 $ 1,653,210 6.96% 5.73%
2,000,000 GE Capital Corp 7.875% 12/01/06 113.345 2,266,900 6.95% 6.18%
700,000 Rockland Trust Co.(*) 9.500% 10/15/96 93.000 651,000 10.22% 19.39%
----------
$ 4,571,110
INDUSTRIALS -- 14.2%
$ 2,850,000 Abbott Labs 5.600% 10/01/03 $ 97.902 $ 2,790,207 5.72% 5.94%
2,000,000 Anheuser Busch 6.900% 10/01/02 105.252 2,105,040 6.56% 5.94%
2,000,000 Archer Daniels Midland Co 6.250% 05/15/03 101.803 2,036,060 6.14% 5.95%
2,500,000 Walt Disney Company 5.800% 10/27/08 97.283 2,432,075 5.96% 6.11%
1,400,000 Kimberly Clark 6.875% 02/15/14 104.190 1,458,660 6.60% 6.48%
1,500,000 Proctor & Gamble Co 8.000% 11/15/03 111.556 1,673,340 7.17% 6.13%
5,000,000 Sara Lee Corp. 5.750% 09/03/03 98.156 4,907,800 5.86% 6.05%
------------
$17,403,182
UTILITIES -- 20.5%
$ 4,100,000 AT&T Corp. 7.750% 03/01/07 $112.386 $ 4,607,826 6.90% 6.20%
5,000,000 Bell Atlantic - New Jersey 5.875% 02/01/04 99.365 4,968,250 5.91% 5.97%
5,000,000 Bellsouth Telecommunications 6.375% 06/15/04 102.756 5,137,800 6.20% 5.96%
1,000,000 Citizens Utilities Co 7.450% 01/15/04 108.968 1,089,680 6.84% 6.03%
2,000,000 Consolidated Edison 6.375% 04/01/03 101.145 2,022,900 6.30% 6.18%
2,000,000 Duke Power Co 7.000% 09/01/05 104.182 2,083,640 6.72% 6.41%
3,000,000 Pacific Bell 7.250% 07/01/02 107.027 3,210,810 6.77% 5.94%
2,000,000 Pacific Tel & Tel 6.500% 07/01/03 100.634 2,012,680 6.46% 6.39%
-------------
$25,133,586
<PAGE>
U.S. GOVERNMENT AGENCIES -- 12.0%
- ----------------------------------
$ 3,200,000 Federal Home Loan Banks 8.375% 10/25/99 $109.797 $ 3,513,504 7.63% 5.49%
4,600,000 Federal Home Loan Banks 8.600% 01/25/00 111.172 5,113,912 7.74% 5.50%
1,500,000 Federal Home Loan Banks 6.070% 06/30/03 101.467 1,522,005 5.98% 5.83%
1,700,000 Federal Home Loan Banks 5.600% 09/22/03 98.553 1,675,401 5.68% 5.84%
3,000,000 Federal Home Loan Banks 5.450% 10/29/03 97.582 2,927,460 5.59% 5.84%
------------
$14,752,282
U.S. TREASURIES -- 48.0%
$ 17,900,000 U.S. Treasury Bonds 7.500% 11/15/16 $117.250 $20,987,750 6.40% 6.03%
6,500,000 U.S. Treasury Bonds 6.250% 08/15/23 102.891 6,687,915 6.07% 6.03%
3,750,000 U.S. Treasury Bonds 8.250% 05/15/05 109.875 4,120,313 7.51% 6.81%
6,600,000 U.S. Treasury Bonds 6.500% 08/15/05 106.531 7,031,046 6.10% 5.61%
75,000 U.S. Treasury Notes 6.875% 03/31/97 101.969 76,477 6.74% 5.22%
100,000 U.S. Treasury Notes 4.375% 08/15/96 99.469 99,469 4.40% 5.24%
6,800,000 U.S. Treasury Notes 6.500% 05/15/05 106.391 7,234,588 6.11% 5.61%
2,000,000 U.S. Treasury Notes 6.250% 02/15/03 104.328 2,086,560 5.99% 5.50%
500,000 U.S. Treasury Notes 7.750% 12/31/99 108.516 542,580 7.14% 5.36%
1,700,000 U.S. Treasury Notes 7.500% 02/15/05 113.344 1,926,847 6.62% 5.61%
2,500,000 U.S. Treasury Notes 8.500% 02/15/00 111.437 2,785,925 7.63% 5.37%
3,000,000 U.S. Treasury Notes 7.750% 02/15/01 110.422 3,312,660 7.02% 5.40%
2,000,000 U.S. Treasury Notes 5.875% 11/15/05 102.250 2,045,000 5.75% 5.58%
----------
$58,937,130
-----------
<PAGE>
Total Investments (identified cost, $113,147,771) -- 98.4% $120,797,290 6.45% 6.04%
======= =======
Other Assets, Less Liabilities -- 1.6% 1,964,312
----------
Net Assets -- 100.0% $122,761,602
============
Average Maturity -- 9.1 Years(1)
<FN>
(*) Security priced by management
(1) Unaudited.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT TOTAL RETURN BOND FUND
===============================================================================
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1995
- -------------------------------------------------------------------------------
<S> <C>
ASSETS:
Investments --
Identified cost........................ $113,147,771
Unrealized appreciation................ 7,649,519
------------
Total value (Note 1A)................ $120,797,290
Cash..................................... 33,926
Receivable for Fund shares sold.......... 101,639
Interest receivable...................... 2,084,899
------------
Total Assets........................... $123,017,754
------------
LIABILITIES:
Payable to dividend disbursing agent..... $ 215,855
Payable for Fund shares reacquired....... 28,047
Trustees' fees payable................... 250
Custodian fee payable.................... 4,500
Accrued expenses and other liabilities... 7,500
------------
Total Liabilities...................... $ 256,152
------------
NET ASSETS.................................. $122,761,602
============
NET ASSETS CONSIST OF:
Proceeds from sales of shares (including shares
issued to shareholders in payment of distributions
declared), less cost of shares redeemed.. $116,505,526
Accumulated net realized loss on investment
transactions (computed on the basis of
identified cost)......................... (1,472,119)
Unrealized appreciation of investments (computed
on the basis of identified cost)......... 7,649,519
Undistributed net investment income......... 78,676
------------
Net assets applicable to outstanding shares $122,761,602
============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING.............................. 9,355,945
============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST................... $13.12
============
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1995
- -------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME:
Interest Income (Note 1B)................ $ 8,856,688
------------
Expenses --
Investment Adviser fee (Note 3)........ $ 525,335
Administrator fee (Note 3)............. 110,899
Compensation of trustees not affiliated with
the Investment Adviser or Administrator 1,473
Distribution expenses (Note 4)......... 254,493
Custodian fee (Note 3)................. 57,086
Audit services......................... 31,683
Transfer and dividend disbursing agent fees 12,309
Shareholder communication expense...... 15,708
Registration costs..................... 17,050
Legal services......................... 1,361
Printing............................... 2,010
Interest expense....................... 484
Miscellaneous.......................... 5,934
------------
Total expenses....................... $ 1,035,825
Deduct --
Reduction of custodian fee........... 9,007
------------
Net expenses......................... $ 1,026,818
------------
Net investment income.............. $ 7,829,870
-------------
REALIZED AND UNREALIZED GAIN ON
INVESTMENTS:
Net realized gain on investment transactions
(identified cost basis)................ $ 411,969
Change in unrealized appreciation
of investments......................... 17,483,217
------------
Net realized and unrealized gain
on investments..................... $ 17,895,186
------------
Net increase in net assets
from operations.................... $ 25,725,056
============
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT TOTAL RETURN BOND FUND
===============================================================================
Year Ended
December 31,
------------------------------
STATEMENTS OF CHANGES IN NET ASSETS 1995 1994
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From operations --
Net investment income...................................................... $ 7,829,870 $ 11,761,434
Net realized gain (loss) on investment
transactions............................................................. 411,969 (1,884,088)
Change in unrealized appreciation
of investments........................................................... 17,483,217 (23,935,733)
------------ ------------
Increase (decrease) in net assets from operations..................... $ 25,725,056 $ (14,058,387)
Distributions to shareholders from net investment income....................... (7,796,582) (11,757,984)
Net decrease from Fund share transactions (Note 5)............................. (38,663,606) (90,200,306)
------------ ------------
Net decrease in net assets............................................ $ (20,735,132) $(116,016,677)
NET ASSETS:
At beginning of year........................................................... 143,496,734 259,513,411
------------ ------------
At end of year................................................................. $ 122,761,602 $ 143,496,734
============= =============
UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED
IN NET ASSETS................................................................. $ 78,676 $ 46,213
============= =============
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT TOTAL RETURN BOND FUND
===================================================================================================================================
Year Ended December 31,
--------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1995 1994 1993 1992 1991
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......... $ 11.430 $ 13.010 $ 12.610 $ 12.580 $ 11.700
-------- -------- -------- -------- --------
Income (loss) from Investment Operations:
Net investment income.................... $ 0.758 $ 0.740 $ 0.789 $ 0.830 $ 0.854
Net realized and unrealized gain (loss) on
investments............................ 1.685 (1.580) 0.580 0.030 0.880
-------- -------- -------- -------- --------
Total income (loss)
from investment operations........... $ 2.443 $ (0.840) $ 1.369 $ 0.860 $ 1.734
-------- -------- -------- -------- --------
Less Distributions:
From net investment income............... $ (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.................... $ (0.753) $ (0.740) $ (0.969) $ (0.830) $ (0.854)
-------- -------- -------- -------- --------
Net asset value, end of year................ $ 13.120 $ 11.430 $ 13.010 $ 12.610 $ 12.580
========= ========= ========= ========= =========
Total Return(1)............................. 21.97% (6.57%) 11.03% 7.13% 15.38%
Ratios/Supplemental Data:
Net assets, end of year (000 omitted).... $122,762 $143,497 $259,513 $ 217,564 $134,728
Ratio of net expenses to average net assets 0.8% 0.8% 0.8% 0.8% 0.8%
Ratio of net investment income to average
net assets............................. 6.2% 6.1% 6.0% 6.7% 7.2%
Portfolio Turnover Rate.................. 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.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT INSURED TAX-FREE BOND FUND (WTFB)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1995
==================================================================================================================================
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>
MUNICIPAL BONDS -- 98.8%
- ------------------------
EDUCATION -- 13.8%
$ 250,000 Berkley Calif Uni Sch Dist 6.150% 08/01/05 $111.657 $ 279,143 5.51% 4.63% M
25,000 Bristol Twp PA Sch Dist 8.700% 01/15/01 120.312 30,077 7.23% 4.19% M
25,000 Calcasieu Parish LA Sch Dist 9.100% 06/01/02 125.150 31,287 7.27% 4.54% M
300,000 Goshen-Chandler Ind Sch Bldg 5.950% 01/15/03 108.668 326,004 5.48% 4.50% M
150,000 Greensburg Salem PA Sch Dist 7.100% 01/01/09 108.137 162,206 6.57% 4.19% F
200,000 Mars Penn Area Sch Dist 6.550% 03/01/02 106.934 213,868 6.13% 4.19% F
150,000 Sumter SC Sch Dist 7.150% 06/01/09 110.209 165,314 6.49% 4.19% F
150,000 Williamsville NY Cent Sch Dist 6.500% 12/01/99 108.459 162,689 5.99% 4.14% M
----------
$ 1,370,588
----------
GENERAL OBLIGATION -- 45.0%
$ 125,000 Bristol County Rhode Island 5.125% 12/01/10 $ 98.967 $ 123,706 5.18% 5.22% M
150,000 Brookhaven NY Ser B 7.000% 05/01/04 116.383 174,575 6.01% 4.61% M
100,000 Central Lake Cnty IL 6.250% 05/01/99 106.478 106,514 5.87% 4.15% M
250,000 Cook County Ill Ser A 5.100% 11/05/05 102.332 255,830 4.98% 4.80% M
250,000 Cumberland Cnty NC 5.700% 02/01/05 108.764 271,910 5.24% 4.37% C
200,000 Fairbanks Northstar, Alaska 5.300% 03/01/04 103.888 207,776 5.10% 4.72% M
300,000 State of Massachusetts 4.125% 10/01/01 99.085 297,255 4.16% 4.30% M
250,000 Michigan Muni Bd Auth 4.950% 05/01/04 101.840 254,600 4.86% 4.68% M
195,000 New York, New York Ser C 6.000% 08/01/01 108.310 211,205 5.54% 4.31% M
250,000 New York, City of NY 7.000% 08/01/04 106.009 265,023 6.60% 3.98% C
125,000 New York City Ser A 7.000% 08/01/99 105.611 132,014 6.63% 4.23% C
200,000 O Fallon Missouri 5.350% 03/01/04 104.580 209,160 5.12% 4.35% C
200,000 Pennsylvania State 6.500% 11/01/04 111.756 223,512 5.82% 4.42% C
250,000 Prince Georges County MD 5.400% 09/01/02 105.602 264,005 5.11% 4.42% M
250,000 Providence Rhode Island 5.600% 01/15/05 105.436 263,590 5.31% 4.85% M
200,000 Smithfield Rhode Island 6.500% 04/15/02 106.677 213,354 6.09% 4.25% C
200,000 Snohomish County Washington 5.750% 12/01/10 103.520 207,040 5.55% 5.25% C
140,000 Summit County Ohio 5.550% 12/01/06 105.457 147,640 5.26% 4.85% P
200,000 Travis County Texas 6.400% 03/01/04 107.907 215,814 5.93% 4.66% C
250,000 West University Place TX 5.600% 02/01/03 105.416 263,540 5.31% 4.57% P
150,000 Wilmington Del 6.150% 07/01/05 108.653 162,980 5.66% 4.49% F
----------
$ 4,471,043
----------
<PAGE>
HEALTH CARE -- 13.2%
$ 250,000 Dade Cnty Fla Health Facs Aut 5.000% 05/15/05 $102.325 $ 255,813 4.89% 4.69% M
205,000 Decatur Illinois Hosp 6.400% 10/01/01 109.372 224,213 5.85% 4.53% M
250,000 Fulton De Kalb GA Hosp Auth 5.300% 01/01/05 103.472 258,680 5.12% 4.82% M
100,000 Massachusetts, State Health & Ed 7.300% 10/01/18 110.369 110,369 6.61% 4.99% C
200,000 Massachusetts, State Health & Edl Facs 4.500% 07/01/02 100.279 200,557 4.49% 4.45% M
250,000 Tallahassee Fla Health Fac 5.400% 12/01/01 104.682 261,705 5.16% 4.49% M
----------
$ 1,311,337
----------
PUBLIC FACILITIES -- 4.1%
$ 175,000 Kane Cnty Ill Pub Bldg Comm 6.700% 12/01/03 $107.676 $ 188,433 6.22% 4.54% C
200,000 Louisiana Public Facs Auth 6.100% 05/15/02 108.261 216,522 5.63% 4.59% M
----------
$ 404,955
----------
UTILITIES -- 10.6%
$ 250,000 East Bay CA Mun Util Syst Wtr 5.000% 06/01/05 $102.488 $ 256,220 4.88% 4.67% M
100,000 North Carolina Mun Pwr Agy 5.000% 01/01/04 102.990 102,990 4.85% 4.55% M
250,000 Ohio State Wtr Dev 5.600% 12/01/02 107.090 267,725 5.23% 4.40% M
200,000 Oklahoma St Mun Pwr Auth 5.300% 01/01/01 104.460 208,920 5.07% 4.30% M
150,000 Pasadena Tex Wtr & Swr 5.900% 10/01/00 107.385 161,077 5.49% 4.17% M
50,000 Pecan Grove TX Muni Utl Dist 8.700% 09/01/02 114.679 57,340 7.59% 4.33% C
----------
$ 1,054,272
----------
MISCELLANEOUS -- 12.1%
$ 70,000 Arizona St Transn Brd Excise Rev 7.000% 07/01/05 $110.802 $ 77,561 6.32% 4.19% F
80,000 Arizona St Transn Brd Excise Rev 7.000% 07/01/05 110.802 88,642 6.32% 4.19% F
250,000 Broomfield Co Sales & Use Tax 7.050% 12/01/06 110.241 275,603 6.40% 4.19% F
150,000 Dearborn MI Econ Dev Corp 6.350% 08/15/02 111.239 166,859 5.71% 4.39% F
150,000 NJ Wastewtr Treatment Ln Rev Ser A 7.000% 05/15/07 108.710 163,065 6.44% 4.73% C
175,000 Pennsylvania Intergovernment 5.250% 06/15/08 100.672 176,176 5.21% 5.18% C
250,000 Tucson Ariz Str & Hwy User 5.200% 07/01/04 103.827 259,567 5.01% 4.65% M
----------
$ 1,207,473
----------
Total Investments (identified cost, $9,241,816) -- 98.8% $ 9,819,668 5.71% 4.56%
======= =======
Other Assets, Less Liabilities -- 1.2% 115,027
----------
Net Assets -- 100.0% $ 9,934,695
============
Average Maturity -- 8.4 Years(1)
<FN>
(*) -- (C): Price to Call; (F): Prerefunded; (M): Price to Maturity;
(P): Price to Par Call; (X): Called.
(1) Unaudited.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT INSURED TAX-FREE BOND FUND
===============================================================================
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1995
- ------------------------------------------------------------------------------
<S> <C>
ASSETS:
Investments --
Identified cost........................ $ 9,241,816
Unrealized appreciation................ 577,852
------------
Total value (Note 1A)................ $ 9,819,668
Cash..................................... 8,620
Interest receivable...................... 152,100
Receivable from Investment Adviser....... 927
Receivable for Fund shares sold.......... 216
------------
Total Assets........................... $ 9,981,531
------------
LIABILITIES:
Payable for Fund shares reacquired....... $ 3,271
Loans payable (Note 8)................... 20,000
Payable to dividend disbursing agent..... 17,170
Trustees' fees payable................... 250
Custodian fee payable.................... 3,000
Interest on loans........................ 169
Accrued expenses and other liabilities... 2,976
------------
Total Liabilities...................... $ 46,836
------------
NET ASSETS.................................. $ 9,934,695
============
NET ASSETS CONSIST OF:
Proceeds from sales of shares (including shares
issued to shareholders in payment of distributions
declared), less cost of shares redeemed.. $ 9,347,135
Unrealized appreciation of investments (computed
on the basis of identified cost)......... 577,852
Undistributed net investment income......... 9,708
------------
Net assets applicable to outstanding shares $ 9,934,695
============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING.............................. 845,234
============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST................... $11.75
============
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1995
- -------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME:
Interest Income (Note 1B)................ $ 587,234
------------
Expenses --
Investment Adviser fee (Note 3)........ $ 42,577
Administrator fee (Note 3)............. 10,644
Compensation of trustees not affiliated with
the Investment Adviser or Administrator 1,548
Distribution expenses (Note 4)......... 21,289
Custodian fee (Note 3)................. 41,713
Audit services......................... 20,783
Interest expense....................... 3,352
Transfer and dividend disbursing agent fees 5,693
Shareholder communication expense...... 1,065
Registration costs..................... 12,911
Printing............................... 2,370
Legal fees............................. 953
Miscellaneous.......................... 2,367
------------
Total expenses....................... $ 167,265
------------
Deduct --
Reduction of Investment Adviser
fee (Note 3)....................... $ 42,577
Reduction of distribution expenses
by Principal Underwriter (Note 4).. 21,289
Reduction of custodian fee (Note 3).. 6,645
Allocation of expenses to Investment
Adviser (Note 3)................... 927
------------
Total deducted..................... $ 71,438
------------
Net expenses......................... $ 95,827
------------
Net investment income.............. $ 491,407
------------
REALIZED AND UNREALIZED GAIN ON
INVESTMENTS:
Net realized gain on investment transactions
(identified cost basis)................ $ 1,397
Change in unrealized appreciation
of investments......................... 686,692
------------
Net realized and unrealized gain
on investments..................... $ 688,089
------------
Net increase in net assets
from operations.................... $ 1,179,496
============
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT INSURED TAX-FREE BOND FUND
===============================================================================
Year Ended
December 31,
-------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS 1995 1994
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From operations --
Net investment income.................................................. $ 491,407 $ 697,607
Net realized gain on investment
transactions...................................................... 1,397 103,903
Change in unrealized appreciation
of investments.................................................... 686,692 (1,505,273)
------------ ------------
Increase (decrease) in net assets from operations................. $ 1,179,496 $ (703,763)
------------ ------------
Distributions to shareholders --
From net investment income............................................. $ (491,406) $ (697,473)
From net realized gains on investment transactions..................... -- (103,201)
------------ ------------
Total distributions............................................... $ (491,406) $ (800,674)
------------ ------------
Net decrease from Fund share transactions (Note 5)......................... $ (1,400,272) $ (6,053,899)
------------ ------------
Net decrease in net assets........................................ $ (712,182) $ (7,558,336)
NET ASSETS:
At beginning of year....................................................... 10,646,877 18,205,213
------------ ------------
At end of year............................................................. $ 9,934,695 $ 10,646,877
============= =============
UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED
IN NET ASSETS............................................................. $ 9,708 $ 7,513
============= =============
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT INSURED TAX-FREE BOND FUND
==================================================================================================================================
Year Ended December 31,
--------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1995 1994 1993 1992 1991
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......... $ 11.020 $ 12.170 $ 11.600 $ 11.330 $ 10.840
-------- -------- -------- -------- --------
Income (loss) from Investment Operations:
Net investment income(1)................. $ 0.531 $ 0.560 $ 0.556 $ 0.601 $ 0.614
Net realized and unrealized gain (loss) on
investments............................ 0.729 (1.050) 0.570 0.270 0.492
-------- -------- -------- -------- --------
Total income (loss)
from investment operations........... $ 1.260 $ (0.490) $ 1.126 $ 0.871 $ 1.106
-------- -------- -------- -------- --------
Less Distributions:
From net investment income............... $ (0.530) $ (0.560) $ (0.556) $ (0.601) $ (0.616)
From net realized gains.................. -- (0.100) -- -- --
-------- -------- -------- -------- --------
Total distributions.................... $ (0.530) $ (0.660) $ (0.556) $ (0.601) $ (0.616)
-------- -------- -------- -------- --------
Net asset value, end of year................ $ 11.750 $ 11.020 $ 12.170 $ 11.600 $ 11.330
========= ========= ========= ========= =========
Total Return(3)............................. 11.64% (4.08%) 9.89% 7.91% 10.50%
Ratios/Supplemental Data:
Net assets, end of year (000 omitted).... $ 9,935 $10,647 $ 18,205 $ 13,454 $ 8,396
Ratio of net expenses to average net assets 1.0%(2) 0.9% 0.9% 0.9% 0.9%
Ratio of net investment income to average
net assets............................. 4.6% 4.8% 4.7% 5.3% 5.6%
Portfolio Turnover Rate.................. 8% 4% 7% 10% 2%
<FN>
(1)During each of the years in the five-year period ended December 31, 1995, the
operating expenses of the Fund were reduced either by a reduction of the
Investment Adviser fee, Administrator fee, or distribution fee or through the
allocation of expenses to the Investment Adviser, or a combination thereof.
Had such actions not been undertaken, the net investment income per share and
the ratios would have been as follows:
Year Ended December 31,
--------------------------------------------------------------
1995 1994 1993 1992 1991
- ----------------------------------------------------------------------------------------------------------------------------
Net investment income per share............. $ 0.462 $0.513 $0.521 $0.556 $0.537
========= ========= ========= ========= =========
Ratios (As a percentage of average net assets):
Expenses .............................. 1.6% 1.3% 1.1% 1.3% 1.6%
========= ========= ========= ========= =========
Net investment income.................... 4.0% 4.4% 4.4% 4.9% 4.9%
========= ========= ========= ========= =========
(2)During the year ended December 31, 1995, custodian fees were reduced by
credits resulting from cash balances that the Trust maintained with the
custodian (Note 3). The computation of net expenses to average 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 net assets
would have been reduced to 0.9%.
(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 year reported. Dividends and distributions, if any, are assumed to be
reinvested at the net asset value on the record date.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT CURRENT INCOME FUND (WCIF)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1995
==================================================================================================================================
Face Coupon Maturity Market Current
Amount Description Rate Date Price Value Yield(1)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
GOVERNMENT INTERESTS - 97.8%
- ----------------------------
$ 1,596,305 GNMA POOL # 000169 7.500% 09/20/22 $102.312 $1,633,212 7.33%
783,575 GNMA POOL # 000394 7.500% 10/20/22 102.312 801,766 7.33%
6,162 GNMA POOL # 000434 8.000% 04/15/01 104.029 6,410 7.69%
866,076 GNMA POOL # 000446 7.500% 11/20/22 102.312 886,100 7.33%
1,655 GNMA POOL # 000473 7.500% 04/15/01 102.974 1,704 7.28%
1,536,632 GNMA POOL # 000545 7.500% 12/20/22 102.312 1,572,159 7.33%
2,440,936 GNMA POOL # 000723 7.500% 01/20/23 102.312 2,497,370 7.33%
2,441,634 GNMA POOL # 001268 8.000% 07/20/23 103.562 2,528,605 7.72%
3,902 GNMA POOL # 001408 6.500% 03/15/02 101.767 3,971 6.39%
176,941 GNMA POOL # 001596 9.000% 04/20/21 105.187 186,119 8.56%
4,638 GNMA POOL # 003026 8.000% 01/15/04 104.784 4,860 7.63%
2,019 GNMA POOL # 003331 8.000% 01/15/04 104.784 2,116 7.63%
5,273 GNMA POOL # 004183 8.000% 07/15/04 105.038 5,539 7.62%
3,107 GNMA POOL # 004433 9.000% 11/15/04 106.051 3,295 8.49%
8,478 GNMA POOL # 005466 8.500% 03/15/05 105.200 8,919 8.08%
1,137 GNMA POOL # 005561 8.500% 04/15/05 104.906 1,193 8.10%
4,022 GNMA POOL # 005687 7.250% 02/15/05 104.562 4,205 6.93%
5,360 GNMA POOL # 005910 7.250% 02/15/05 104.562 5,605 6.93%
21,598 GNMA POOL # 007003 8.000% 07/15/05 105.225 22,726 7.60%
3,324 GNMA POOL # 007319 6.500% 10/15/04 101.925 3,388 6.38%
8,196 GNMA POOL # 009106 8.250% 05/15/06 105.604 8,655 7.81%
10,361 GNMA POOL # 009889 7.250% 02/15/06 104.562 10,834 6.93%
3,151 GNMA POOL # 011191 7.250% 04/15/06 104.562 3,295 6.93%
7,072 GNMA POOL # 012526 8.000% 11/15/06 105.354 7,451 7.59%
117,175 GNMA POOL # 151443 10.000% 03/15/16 110.488 129,464 9.05%
258,248 GNMA POOL # 151882 8.500% 09/15/19 105.775 273,162 8.04%
51,428 GNMA POOL # 153564 10.000% 04/15/16 110.523 56,840 9.05%
192,738 GNMA POOL # 172558 9.500% 08/15/16 108.218 208,577 8.78%
201,243 GNMA POOL # 176992 8.000% 11/15/16 105.234 211,776 7.60%
64,194 GNMA POOL # 177784 8.000% 10/15/16 105.108 67,473 7.61%
92,708 GNMA POOL # 180033 9.500% 09/15/16 108.218 100,327 8.78%
25,336 GNMA POOL # 188060 9.500% 10/15/16 108.135 27,397 8.79%
8,536 GNMA POOL # 190959 8.500% 02/15/17 105.983 9,047 8.02%
206,151 GNMA POOL # 192357 8.000% 04/15/17 105.108 216,681 7.61%
<PAGE>
$ 621,359 GNMA POOL # 194057 8.500% 04/15/17 $105.924 $ 658,168 8.02%
125,550 GNMA POOL # 194287 9.500% 03/15/17 108.302 135,973 8.77%
979,931 GNMA POOL # 194926 8.500% 02/15/17 105.983 1,038,560 8.02%
19,719 GNMA POOL # 196063 8.500% 03/15/17 105.983 20,899 8.02%
213,072 GNMA POOL # 199537 8.000% 03/15/17 105.108 223,956 7.61%
386,029 GNMA POOL # 203369 8.000% 12/15/16 105.108 405,747 7.61%
16,165 GNMA POOL # 206740 10.000% 10/15/17 110.593 17,877 9.04%
157,667 GNMA POOL # 206762 9.000% 04/15/21 106.375 167,718 8.46%
110,262 GNMA POOL # 207019 8.000% 03/15/17 105.108 115,894 7.61%
35,096 GNMA POOL # 208076 8.000% 04/15/17 105.344 36,972 7.59%
64,502 GNMA POOL # 210520 10.500% 08/15/17 111.864 72,155 9.39%
39,360 GNMA POOL # 210618 9.500% 04/15/17 108.385 42,660 8.77%
205,892 GNMA POOL # 211013 9.000% 01/15/20 106.531 219,339 8.45%
212,710 GNMA POOL # 211231 8.500% 05/15/17 105.983 225,436 8.02%
362,573 GNMA POOL # 211279 8.000% 04/15/17 105.108 381,093 7.61%
122,918 GNMA POOL # 212601 8.500% 06/15/17 105.983 130,272 8.02%
51,602 GNMA POOL # 218420 8.500% 11/15/21 105.000 54,182 8.10%
295,630 GNMA POOL # 219335 8.000% 05/15/17 105.108 310,731 7.61%
291,472 GNMA POOL # 220703 8.000% 05/15/17 105.108 306,360 7.61%
30,996 GNMA POOL # 220917 8.500% 04/15/17 105.983 32,850 8.02%
719,738 GNMA POOL # 222112 8.000% 01/15/22 104.264 750,428 7.67%
59,699 GNMA POOL # 223126 10.000% 08/15/17 110.593 66,023 9.04%
144,980 GNMA POOL # 223133 9.500% 07/15/17 108.052 156,654 8.79%
49,911 GNMA POOL # 223348 10.000% 08/15/18 110.593 55,198 9.04%
36,730 GNMA POOL # 223588 10.000% 12/15/18 110.593 40,621 9.04%
30,570 GNMA POOL # 224078 10.000% 07/15/18 110.593 33,808 9.04%
126,091 GNMA POOL # 228308 10.000% 01/15/19 110.628 139,492 9.04%
91,232 GNMA POOL # 228483 9.500% 09/15/19 107.885 98,426 8.81%
72,824 GNMA POOL # 230223 9.500% 04/15/18 108.135 78,748 8.79%
93,958 GNMA POOL # 235000 10.000% 01/15/18 110.593 103,911 9.04%
70,085 GNMA POOL # 245580 9.500% 07/15/18 107.968 75,669 8.80%
67,561 GNMA POOL # 247473 10.000% 09/15/18 110.593 74,718 9.04%
177,088 GNMA POOL # 247681 9.000% 11/15/19 106.609 188,792 8.44%
56,106 GNMA POOL # 247872 10.000% 09/15/18 110.628 62,069 9.04%
35,430 GNMA POOL # 250412 8.000% 03/15/18 104.967 37,190 7.62%
95,974 GNMA POOL # 251241 9.500% 06/15/18 108.052 103,702 8.79%
<PAGE>
$ 120,864 GNMA POOL # 258911 9.500% 09/15/18 $107.968 $ 130,494 8.80%
75,028 GNMA POOL # 260999 9.500% 09/15/18 107.968 81,006 8.80%
102,354 GNMA POOL # 263439 10.000% 02/15/19 110.628 113,232 9.04%
134,054 GNMA POOL # 265267 9.500% 08/15/20 107.885 144,624 8.81%
60,278 GNMA POOL # 266983 10.000% 02/15/19 110.628 66,684 9.04%
37,694 GNMA POOL # 273690 9.500% 08/15/19 107.885 40,666 8.81%
101,274 GNMA POOL # 274489 9.500% 12/15/19 107.885 109,259 8.81%
38,414 GNMA POOL # 275456 9.500% 08/15/19 107.885 41,443 8.81%
125,456 GNMA POOL # 275538 9.500% 01/15/20 107.968 135,452 8.80%
75,626 GNMA POOL # 277205 9.000% 12/15/19 106.531 80,565 8.45%
88,843 GNMA POOL # 285467 9.500% 07/15/20 107.885 95,848 8.81%
126,835 GNMA POOL # 285744 9.000% 05/15/20 106.609 135,218 8.44%
146,243 GNMA POOL # 286556 9.000% 03/15/20 106.531 155,794 8.45%
4,444 GNMA POOL # 287999 9.000% 09/15/20 106.453 4,731 8.45%
299,797 GNMA POOL # 289092 9.000% 04/15/20 106.531 319,377 8.45%
19,338 GNMA POOL # 289949 8.500% 07/15/21 105.000 20,305 8.10%
33,102 GNMA POOL # 290700 9.000% 08/15/20 106.453 35,238 8.45%
74,881 GNMA POOL # 291933 9.500% 07/15/20 107.802 80,723 8.81%
43,444 GNMA POOL # 293666 8.500% 06/15/21 105.775 45,953 8.04%
4,876 GNMA POOL # 294209 9.000% 07/15/21 106.375 5,187 8.46%
91,090 GNMA POOL # 294577 9.500% 11/15/20 107.802 98,197 8.81%
13,406 GNMA POOL # 297345 8.500% 08/15/20 105.687 14,168 8.04%
41,364 GNMA POOL # 301017 8.500% 06/15/21 105.000 43,432 8.10%
151,767 GNMA POOL # 301366 8.500% 06/15/21 105.687 160,398 8.04%
165,153 GNMA POOL # 302713 9.000% 02/15/21 106.375 175,682 8.46%
18,670 GNMA POOL # 302723 8.500% 05/15/21 105.687 19,732 8.04%
147,135 GNMA POOL # 302781 8.500% 06/15/21 105.687 155,503 8.04%
168,682 GNMA POOL # 302933 8.500% 06/15/21 105.687 178,275 8.04%
145,599 GNMA POOL # 304512 8.500% 05/15/21 105.775 154,007 8.04%
332,997 GNMA POOL # 305091 9.000% 07/15/21 106.375 354,226 8.46%
22,526 GNMA POOL # 306669 8.000% 07/15/21 104.336 23,503 7.67%
233,641 GNMA POOL # 306693 8.500% 09/15/21 105.000 245,323 8.10%
135,563 GNMA POOL # 307553 8.500% 06/15/21 105.000 142,341 8.10%
219,039 GNMA POOL # 308792 9.000% 07/15/21 106.375 233,003 8.46%
130,383 GNMA POOL # 311087 8.500% 07/15/21 105.000 136,902 8.10%
24,014 GNMA POOL # 314222 8.500% 04/15/22 105.000 25,215 8.10%
<PAGE>
$ 292,885 GNMA POOL # 314581 9.500% 10/15/21 $107.718 $ 315,490 8.82%
509,011 GNMA POOL # 314912 8.500% 05/15/22 105.000 534,462 8.10%
563,600 GNMA POOL # 315187 8.000% 06/15/22 104.264 587,632 7.67%
594,314 GNMA POOL # 315388 8.000% 02/15/22 104.336 620,083 7.67%
576,048 GNMA POOL # 315754 8.000% 01/15/22 104.264 600,611 7.67%
1,206,915 GNMA POOL # 316240 8.000% 01/15/22 104.264 1,258,378 7.67%
458,456 GNMA POOL # 316615 8.500% 11/15/21 105.000 481,379 8.10%
301,201 GNMA POOL # 317069 8.500% 12/15/21 105.000 316,261 8.10%
566,321 GNMA POOL # 317351 8.000% 05/15/22 104.188 590,039 7.68%
576,003 GNMA POOL # 317358 8.000% 05/15/22 104.264 600,564 7.67%
473,678 GNMA POOL # 318776 8.000% 02/15/22 104.264 493,876 7.67%
14,782 GNMA POOL # 318793 8.500% 02/15/22 105.775 15,636 8.04%
483,979 GNMA POOL # 319441 8.500% 04/15/22 105.000 508,178 8.10%
348,532 GNMA POOL # 321806 8.000% 05/15/22 104.264 363,393 7.67%
735,097 GNMA POOL # 321807 8.000% 05/15/22 104.188 765,883 7.68%
468,099 GNMA POOL # 321976 8.500% 01/15/22 105.000 491,504 8.10%
825,055 GNMA POOL # 323226 8.000% 06/15/22 104.188 859,608 7.68%
682,237 GNMA POOL # 323929 8.000% 02/15/22 104.264 711,328 7.67%
596,656 GNMA POOL # 325165 8.000% 06/15/22 104.188 621,644 7.68%
479,463 GNMA POOL # 325651 8.000% 06/15/22 104.264 499,907 7.67%
949,006 GNMA POOL # 329540 7.500% 08/15/22 103.014 977,609 7.28%
1,369,246 GNMA POOL # 329982 7.500% 02/15/23 102.875 1,408,612 7.29%
713,139 GNMA POOL # 331361 8.000% 11/15/22 104.188 743,005 7.68%
1,419,856 GNMA POOL # 335746 8.000% 10/15/22 104.188 1,479,320 7.68%
546,946 GNMA POOL # 335950 8.000% 10/15/22 104.188 569,852 7.68%
2,655,992 GNMA POOL # 348103 7.000% 06/15/23 101.356 2,692,007 6.91%
888,503 GNMA POOL # 348213 6.500% 08/15/23 99.187 881,279 6.55%
1,454,188 GNMA POOL # 350372 7.000% 04/15/23 101.356 1,473,907 6.91%
1,573,407 GNMA POOL # 350659 7.500% 06/15/23 102.875 1,618,642 7.29%
1,876,639 GNMA POOL # 350938 6.500% 08/15/23 99.187 1,861,382 6.55%
916,319 GNMA POOL # 362125 7.000% 10/15/23 101.356 928,744 6.91%
951,399 GNMA POOL # 362174 6.500% 01/15/24 99.290 944,644 6.55%
949,216 GNMA POOL # 362628 7.000% 08/15/23 101.187 960,483 6.92%
993,263 GNMA POOL # 363429 7.000% 08/15/23 101.187 1,005,053 6.92%
927,593 GNMA POOL # 367414 6.000% 11/15/23 97.250 902,084 6.17%
2,861,912 GNMA POOL # 367806 6.500% 09/15/23 99.187 2,838,645 6.55%
<PAGE>
$ 2,589,097 GNMA POOL # 368238 7.000% 12/15/23 $101.187 $ 2,619,830 6.92%
2,768,838 GNMA POOL # 368502 7.000% 02/15/24 101.187 2,801,704 6.92%
1,984,354 GNMA POOL # 370773 6.000% 11/15/23 97.250 1,929,784 6.17%
2,872,511 GNMA POOL # 372050 6.500% 02/15/24 99.187 2,849,157 6.55%
----------
Total Government Investments (identified cost, $63,949,907) -- 97.8% $64,895,837
RESERVE FUNDS - 1.8%
1,155,000 American Express Corp 5.654% 01/02/96 100.000 1,155,000 5.65%
----------- ------
Total Investments (identified cost $65,104,907) -- 99.6% $66,050,837 7.98%
=======
Other Assets, less Liabilities -- 0.4% 294,336
-----------
Net Assets -- 100.0% $66,345,173
============
<FN>
(1) Unaudited.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT CURRENT INCOME FUND
===============================================================================
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1995
- -------------------------------------------------------------------------------
<S> <C>
ASSETS:
Investments --
Identified cost........................ $ 65,104,907
Unrealized appreciation................ 945,930
------------
Total value (Note 1A)................ $ 66,050,837
Cash .................................... 2,559
Receivable for Fund shares sold.......... 95,179
Interest receivable...................... 398,712
Receivable for investments sold.......... 1,206
------------
Total Assets........................... $ 66,548,493
------------
LIABILITIES:
Payable to dividend disbursing agent..... $ 103,812
Payable for Fund shares reacquired....... 90,648
Trustees' fees payable................... 250
Custodian fee payable.................... 4,400
Accrued expenses and other liabilities... 4,210
------------
Total Liabilities...................... $ 203,320
------------
NET ASSETS.................................. $ 66,345,173
============
NET ASSETS CONSIST OF:
Proceeds from sales of shares (including shares
issued to shareholders in payment of distributions
declared), less cost of shares redeemed.. $ 66,279,731
Accumulated net realized loss on investment
transactions (computed on the basis of
identified cost)......................... (914,103)
Unrealized appreciation of investments (computed
on the basis of identified cost)......... 945,930
Undistributed net investment income......... 33,615
------------
Net assets applicable to outstanding shares $ 66,345,173
============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING.............................. 6,218,728
============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST................... $10.67
============
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1995
- ------------------------------------------------------------------------------
INVESTMENT INCOME:
<S> <C>
Interest Income (Note 1B)................ $ 5,976,371
------------
Expenses --
Investment Adviser fee (Note 3)........ $ 313,626
Administrator fee (Note 3)............. 78,407
Compensation of trustees not affiliated with
the Investment Adviser or Administrator 1,529
Distribution expenses (Note 4)......... 155,373
Custodian fee (Note 3)................. 60,585
Audit services......................... 23,683
Transfer and dividend disbursing agent fees 9,695
Shareholder communication expense...... 6,494
Registration costs..................... 12,848
Interest expense....................... 5,374
Printing............................... 1,450
Legal services......................... 1,187
Miscellaneous.......................... 7,557
------------
Total expenses....................... $ 677,808
Deduct --
Reduction of custodian fee........... 4,516
------------
Net expenses......................... $ 673,292
------------
Net investment income.............. $ 5,303,079
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Net realized loss on investment transactions
(identified cost basis)................ $ (215,933)
Change in unrealized appreciation
of investments......................... 7,735,307
------------
Net realized and unrealized gain
on investments..................... $ 7,519,374
------------
Net increase in net assets
from operations.................... $ 12,822,453
============
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT CURRENT INCOME FUND
===================================================================================================================================
Year Ended
December 31,
-----------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS 1995 1994
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From operations --
Net investment income.................................................. $ 5,303,079 $ 6,817,890
Net realized loss on investment
transactions......................................................... (215,933) (682,417)
Change in unrealized appreciation
of investments....................................................... 7,735,307 (10,057,612)
------------ ------------
Increase (decrease) in net assets from operations................. $ 12,822,453 $ (3,922,139)
------------ ------------
Distributions to shareholders --
From net investment income............................................. $ (5,270,012) $ (6,817,890)
In excess of net investment income..................................... -- (1,238)
------------ ------------
Total distributions............................................... $ (5,270,012) $ (6,819,128)
------------ ------------
Net decrease from Fund share transactions (Note 5)......................... $ (25,384,872) $ (20,238,740)
------------ ------------
Net decrease in net assets........................................ $ (17,832,431) $ (30,980,007)
NET ASSETS:
At beginning of year....................................................... 84,177,604 115,157,611
------------ ------------
At end of year............................................................. $ 66,345,173 $ 84,177,604
============= =============
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF)
NET INVESTMENT INCOME INCLUDED IN NET ASSETS.................................... $ 33,615 $ (1,238)
============= =============
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT CURRENT INCOME FUND
==================================================================================================================================
Year Ended December 31,
--------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1995 1994 1993 1992 1991
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......... $ 9.710 $ 10.750 $ 10.780 $ 10.850 $ 10.160
-------- -------- -------- -------- --------
Income (loss) from Investment Operations:
Net investment income(1)................. $ 0.696 $ 0.690(*) $ 0.728 $ 0.767 $ 0.798
Net realized and unrealized gain (loss) on
investments............................ 0.955 (1.040) (0.030) (0.069) 0.690
-------- -------- -------- -------- --------
Total income (loss)
from investment operations......... $ 1.651 $ (0.350) $ 0.698 $ 0.698 $ 1.488
-------- -------- -------- -------- --------
Less Distributions:
From net investment income............... $ (0.691) $ (0.690) $ (0.728) $ (0.767) $ (0.798)
From net realized gain................... -- -- -- (0.001) --
-------- -------- -------- -------- --------
Total distributions.................. $ (0.691) $ (0.690) $ (0.728) $ (0.768) $ (0.798)
-------- -------- -------- -------- --------
Net asset value, end of year................ $ 10.670 $ 9.710 $ 10.750 $ 10.780 $ 10.850
========= ========= ========= ========= =========
Total Return(2)............................. 17.46% (3.30%) 6.59% 6.73% 15.31%
Ratios/Supplemental Data:
Net assets, end of year (000 omitted).... $ 66,345 $84,178 $ 115,158 $ 99,676 $ 65,700
Ratio of net expenses to average net assets 0.9% 0.8% 0.8% 0.9% 0.9%
Ratio of net investment income to average
net assets............................. 6.8% 6.9% 6.7% 7.2% 7.6%
Portfolio Turnover Rate.................. 26% 10% 4% 13% 5%
<FN>
(1)During 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:
1991
Net investment income per share............. $ 0.787
=========
Ratios (As a percentage of average net assets):
Expenses .............................. 1.0%
=========
Net investment income.................... 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.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
THE WRIGHT MANAGED INCOME TRUST
NOTES TO FINANCIAL STATEMENTS
===============================================================================
(1) SIGNIFICANT ACCOUNTING POLICIES
The Trust, issuer of Wright U.S. Treasury Fund (WUSTB) series, formerly the
Wright Government Obligations Fund series; Wright U.S. Treasury Near Term Fund
(WNTB) series, formerly the Wright Near Term Bond Fund series; Wright Total
Return Bond Fund (WTRB) series, Wright Insured Tax-Free Bond Fund (WTFB) 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.
B. Income -- Interest income is determined on the basis of interest accrued
and discount earned, adjusted for amortization of premium or discount on
long-term debt securities when required for federal income tax purposes.
C. 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 $434,300 (WUSTB), $21,682,260 (WNTB), $914,103 (WCIF)
and $1,472,119 (WTRB) which will reduce taxable income arising from
future net realized gain on investments, if any, to the extent permitte
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:
<TABLE>
12/31 WUSTB WNTB WCIF WTRB
--------------------------------------------------
<S> <C> <C> <C> <C>
1996 $ -- $2,300,814 $ -- $ --
1997 -- 1,319,208 -- --
1998 434,300 3,324,484 -- --
1999 -- 4,467,443 -- --
2000 -- 2,957,673 7,132 --
2001 -- -- 8,619 --
2002 -- 6,936,070 682,417 1,472,119
2003 -- 376,568 215,933 --
</TABLE>
Distributions paid by WTFB from net investment income on tax-exempt
municipal securities are not included by shareholders as gross income for
federal income tax purposes because WTFB intends to meet certain
requirements of the Code applicable to regulated investment companies which
will enable WTFB to pay exempt distributions. The portion of interest, if
any, earned on private activity bonds issued after August 7, 1986, may be
considered a tax preference item to shareholders.
D. 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.
E. Other -- Investment transactions are accounted for on the date the
investments are purchased or sold.
<PAGE>
(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.
<TABLE>
ACCUMULATED UNDISTRIBUTED NET REALIZED GAIN
Gain (Loss) Undistributed
Paid-in on Net Investment
Capital Investment Income (Loss)
- -----------------------------------------------------------
<S> <C> <C> <C>
WUSTB ($6) -- $6
WNTB ($2,038,311) $2,038,311 --
WTRB $825 -- ($825)
WTFB ($96) ($2,098) $2,194
WCIF ($1,784) ($2) $1,786
- ----------------------------------------------------------
</TABLE>
These reclassifications are due to differences between book and tax
accounting. Net investment income, net realized gains (losses) and net assets
were not affected by these reclassifications.
(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 year ended December 31, 1995, the effective annual rate was 0.40% for
WUSTB, WTFB and WCIF, 0.41% for WTRB and 0.43% for WNTB. To enhance the net
income of the Funds, Wright reduced its investment adviser fee by $42,577 and
$17,515 for the benefit of WTFB and WUSTB, respectively. The Trust also has
engaged Eaton Vance Management (Eaton Vance) to act as administrator of the
Trust. Under the Administration Agreement, Eaton Vance is responsible for
managing the business affairs of the Trust and is compensated based upon a
percentage of average daily net assets which rate is reduced as average daily
net assets exceed certain levels. For the year ended December 31, 1995, the
effective annual rate was 0.10% for WUSTB, WTFB and WCIF, 0.09% for WTRB and
0.07% for WNTB. The custodian fee was paid to Investors Bank & Trust Company
(IBT) for its services as custodian of the Trust. Prior to November 10, 1995,
IBT was an affiliate of Eaton Vance. Pursuant to the custodian agreement, IBT
receives a fee reduced by credits which are determined based on the average
daily cash balances the Trust maintains with IBT. All significant credits are
reported as a reduction of expenses in the Statement of Operations. 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 will pay Wright Investors' Service Distributors, Inc. (Principal
Underwriter), a subsidiary of
<PAGE>
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 year ended December 31, 1995, the Principal
Underwriter made a reduction of its fee to WUSTB and WTFB by $32,770 and
$21,289, 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>
Year Ended December 31,
-------------------------------------------------------------
1995 1994
-------------------------------------------------------------
Shares Amount Shares Amount
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
WRIGHT U.S. TREASURY FUND --
Sales.................................................... 111,589 $ 1,478,738 162,879 $ 2,104,165
Issued to shareholders in payment
of distributions declared.............................. 41,352 557,152 62,116 805,054
Redemptions.............................................. (482,923) (6,531,999) (943,611) (12,465,253)
---------- ------------- ---------- -------------
Net decrease......................................... (329,982) $ (4,496,109) (718,616) $ (9,556,034)
========== ============== ========== ==============
WRIGHT U.S. TREASURY NEAR TERM FUND --
Sales.................................................... 2,507,050 $ 25,756,963 4,457,277 $ 46,681,687
Issued to shareholders in payment of
distributions declared................................. 657,890 6,744,268 1,093,362 11,252,377
Redemptions..............................................(10,814,467) (110,894,862) (19,306,382) (199,439,187)
---------- ------------- ---------- -------------
Net decrease......................................... (7,649,527) $(78,393,631) (13,755,743) $(141,505,123)
========== ============== ========== ==============
WRIGHT TOTAL RETURN BOND FUND --
Sales.................................................... 1,710,110 $ 21,132,654 3,088,029 $ 38,238,580
Issued to shareholders in payment
of distributions declared.............................. 470,132 5,784,061 800,418 9,609,763
Redemptions.............................................. (5,380,600) (65,580,321) (11,284,858) (138,048,649)
---------- ------------- ---------- -------------
Net decrease......................................... (3,200,358) $(38,663,606) (7,396,411) $(90,200,306)
========== ============== ========== ==============
WRIGHT INSURED TAX-FREE BOND FUND --
Sales.................................................... 277,377 $ 3,172,217 307,219 $ 3,650,011
Issued to shareholders in payment
of distributions declared ............................. 24,036 276,793 52,115 597,038
Redemptions.............................................. (422,274) (4,849,282) (889,361) (10,300,948)
---------- ------------- ---------- -------------
Net decrease......................................... (120,861) $ (1,400,272) (530,027) $ (6,053,899)
========== ============== ========== ==============
WRIGHT CURRENT INCOME FUND --
Sales.................................................... 796,965 $ 8,232,880 1,447,569 $ 14,915,507
Issued to shareholders in payment
of distributions declared.............................. 397,997 4,102,611 530,312 5,337,338
Redemptions.............................................. (3,646,704) (37,720,363) (4,014,808) (40,491,585)
---------- ------------- ---------- -------------
Net decrease......................................... (2,451,742) $(25,384,872) (2,036,927) $(20,238,740)
========= ============ ========= ============
</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>
Year Ended December 31, 1995
--------------------------------------------------------------------------------------------
Wright U.S. Wright U.S. Treasury Wright Total Wright Insured Wright Current
Treasury Fund Near Term Fund Return Bond Fund Tax-Free Bond Fund Income Fund
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Purchases --
Non-U.S. Gov't Obligations.. $ -- $ -- $ 5,301,420 $ 840,389 $ --
============== ============== ============== ============== ==============
U.S. Gov't Obligations...... $ 1,318,383 $ 35,726,875 $ 57,719,949 $ -- $ --
============== ============== ============== ============== ==============
Sales --
Non-U.S. Gov't Obligations.. $ -- $ -- $ 26,913,665 $ 2,879,942 $ --
============== ============== ============== ============== ==============
U.S. Gov't Obligations...... $ 5,556,281 $ 107,673,626 $ 74,330,957 $ -- $ 20,004,409
============== ============== ============== ============== ==============
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(7) FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES
The cost and unrealized appreciation (depreciation) in value of the
investments owned at December 31, 1995, as computed on a federal income tax
basis, are as follows:
<TABLE>
Wright U.S. Wright U.S. Treasury Wright Total Wright Insured Wright Current
Treasury Fund Near Term Fund Return Bond Fund Tax-Free Bond Fund Income Fund
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Aggregate cost................... $ 12,564,565 $136,992,741 $113,147,771 $ 9,241,816 $ 65,104,907
============= ============= ============= ============= =============
Gross unrealized appreciation.... $ 2,326,649 $ 4,674,371 $ 8,044,555 $ 581,293 $ 1,401,952
Gross unrealized depreciation.... -- (270,485) (395,036) (3,441) (456,022)
------------ ------------ ------------ ------------ ------------
Net unrealized appreciation. $ 2,326,649 $ 4,403,886 $ 7,649,519 $ 577,852 $ 945,930
============= ============= ============= ============= =============
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
(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 Wright Insured Tax-Free Bond Fund had loans
outstanding of $20,000 at December 31, 1995.
<PAGE>
INDEPENDENT AUDITORS' REPORT
===============================================================================
To the Trustees and Shareholders of
The Wright Managed Income Trust:
We have audited the accompanying statements of assets and liabilities,
including the portfolios of investments, of Wright U.S. Treasury Fund,
Wright U.S. Treasury Near Term Fund, Wright Total Return Bond Fund, Wright
Insured Tax-Free Bond Fund, and Wright Current Income Fund of The Wright
Managed Income Trust as of December 31, 1995, the related statements 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 each of the
respective Funds constituting The Wright Managed Income Trust as of
December 31, 1995, the results of their operations, the changes in their
net assets, and their 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 the art work on the back cover of the report
Three thin vertical red lines on the right side of the page.
- -------------------------------------------------------------------------------
THE WRIGHT MANAGED
INCOME TRUST
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
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.
<PAGE>
