ANNUAL
REPORT
December 31, 1996
The Wright Managed
Equity Trust
The Wright Managed
Income Trust
The Wright Managed Investment Funds
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THE WRIGHT MANAGED BLUE CHIP INVESTMENT FUNDS
The Wright Managed Blue Chip Investment Funds consists of four equity funds
from The Wright Managed Equity Trust, a money market fund and four other fixed
income funds from The Wright Managed Income Trust. Each of the nine funds have
distinct investment objectives and policies. They can be used singly or in
combination to achieve virtually any objective. Further, as they are all
"no-load" funds (no commissions or sales charges), portfolio allocation
strategies can be altered as desired to meet changing market conditions or
changing requirements without incurring any sales charges.
Approved Wright Investment List
Securities selected for each of the three U.S. equity portfolios are drawn from
investment lists prepared by Wright Investors' Service known as The Approved
Wright Investment List (the "AWIL"). Companies on the AWIL are selected by
Wright as having the highest investment quality among those equity securities
which are considered as "investment grade". The corporations may be large or
small, exchange traded or over-the-counter, and may include those not currently
paying dividends on their shares. Companies on the AWIL are, in the opinion of
Wright, soundly financed and have established records of earnings profitability
and equity growth. All have established investment acceptance and active, liquid
markets for their publicly owned shares.
A separate list, known as the International Approved Wright Investment
List, is prepared for non-U.S. companies.
Four Equity Funds
Wright Selected Blue Chip Equities Fund (WBC) seeks to enhance total investment
return of price appreciation plus income by providing active management of
equities of well-established companies meeting strict quality standards.
Equities selected are limited to those companies on the AWIL whose current
operations reflect defined, quantified characteristics which have been
determined to offer comparatively superior total investment returns over the
intermediate term. The process selects those companies from the AWIL, regardless
of size, based on Wright's evaluation of their outlook as described above.
Investments are equally weighted.
Wright Junior Blue Chip Equities (WJBC). This portfolio seeks to enhance total
investment return of price appreciation plus income by providing management of
equities of smaller companies still experiencing their rapid growth period.
Equity securities selected are limited to those companies on the AWIL which when
ranked by stock market capitalization represent the smaller companies on the
list. These companies are then ranked by their outlook and those with higher
ranking are considered for purchase. Investments are equally weighted.
Wright Quality Core Equities Fund (WQC) seeks to enhance total investment return
of price appreciation plus income by providing management of a broadly
diversified portfolio of equities of well-established companies meeting strict
quality standards. In selecting companies from the AWIL for this portfolio, the
Investment Committee of Wright Investors' Service first ranks all AWIL companies
by comparative market value. The smaller companies are eliminated from
consideration. From the remaining companies Wright's Investment Committee
selects, based on quantitative formulae, those companies which are expected to
do better over the next one to two years. The quantitative formulae takes into
consideration factors such as
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over/under valuation and compatibility with current market trends.
Investments in the portfolio are equally weighted in the selected securities.
Wright International Blue Chip Equities Fund (WIBC). This is a broadly
diversified portfolio of equities of well-established, non-U.S. companies
meeting strict quality standards. The portfolio may buy common stocks traded on
the securities exchange of the country in which the company is based or it may
purchase American Depositary Receipts (ADR's) traded in the United States. The
portfolio is denominated in U.S. dollars and investors should understand that
fluctuations in foreign exchange rates may impact the value of their investment.
A Money Market Fund
Wright U.S. Treasury Money Market Fund seeks a high rate of current income but
with added safety that comes from limiting its investments to securities of the
U.S. Government and its agencies. There may be an added advantage to investors
that reside in states and municipalities that do not tax dividend income from
mutual funds investing exclusively in U.S. Government securities.
Four Fixed-Income Funds
Wright U.S. Treasury Near Term Fund (WNTB), like WUSTB, is a diversified
portfolio concentrating on bonds and other obligations of the U.S. Government,
which are guaranteed as to principal and interest by the full faith and credit
of the U.S. Government. The average weighted maturity varies from one to five
years. This portfolio is designed to appeal to the investor seeking a high level
of income that is normally somewhat less variable and normally somewhat higher
than that available from short-term money market instruments and who is also
tolerant of modest fluctuation in capital (i.e. compared with somewhat greater
fluctuation likely with longer term fixed income securities). Dividends are
accrued daily and paid monthly.
Wright U.S. Treasury Fund (WUSTB) is invested in U.S. Treasury bills, notes and
bonds, which are guaranteed as to principal and interest by the full faith and
credit of the U.S. Government, and which are not expected to be taxable by
certain state or municipal governments. Maturities are relatively long.
Dividends are accrued daily and paid monthly.
Wright Total Return Bond Fund (WTRB) is a diversified portfolio of quality
government and corporate bonds and other debt securities of varying maturities
which, in the Adviser's opinion, will achieve the portfolio objective of best
total return, i.e. the best total of ordinary income plus capital appreciation.
Accordingly, investment selections and maturities may differ depending on the
particular phase of the interest rate cycle. Dividends are accrued daily and
paid monthly.
Wright Current Income Fund (WCIF) may be invested in a variety of securities and
may use a number of strategies to produce a high level of income with reasonable
stability of principal. Currently, this portfolio is primarily invested in
mortgage Participation Certificates issued by the Government National Mortgage
Association (GNMA). GNMA guarantees that the fund will receive timely principal
and interest payments. The Fund reinvests all principal payments. Dividends are
accrued daily and paid monthly.
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TABLE OF CONTENTS
INVESTMENT OBJECTIVES..........................Inside Front Cover
LETTER TO SHAREHOLDERS........................................ 2
WRIGHT MANAGED EQUITY FUNDS --
Dividend Distributions................................... 10
WRIGHT MANAGED INCOME FUNDS --
Dividend Distributions................................... 12
THE WRIGHT MANAGED EQUITY TRUST
WRIGHT SELECTED BLUE CHIP EQUITIES FUND (WBC) --
Portfolio of Investments................................. 14
Financial Statements..................................... 17
WRIGHT JUNIOR BLUE CHIP EQUITIES FUND (WJBC) --
Portfolio of Investments................................. 20
Financial Statements..................................... 22
WRIGHT QUALITY CORE EQUITIES FUND (WQC) --
Portfolio of Investments................................. 25
Financial Statements..................................... 28
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC) --
Portfolio of Investments................................. 31
Financial Statements..................................... 34
Notes to Financial Statements............................ 37
THE WRIGHT MANAGED INCOME TRUST
WRIGHT U.S. TREASURY MONEY MARKET FUND (WTMM) --
Portfolio of Investments................................. 42
Financial Statements..................................... 43
WRIGHT U.S. TREASURY NEAR TERM FUND (WNTB) --
Portfolio of Investments................................. 45
Financial Statements..................................... 46
WRIGHT U.S. TREASURY FUND (WUSTB) --
Portfolio of Investments................................. 49
Financial Statements..................................... 50
WRIGHT TOTAL RETURN BOND FUND (WTRB) --
Portfolio of Investments................................. 53
Financial Statements..................................... 54
WRIGHT CURRENT INCOME FUND (WCIF) --
Portfolio of Investments................................... 57
Financial Statements....................................... 61
Notes to Financial Statements.............................. 64
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REPORT TO SHAREHOLDERS
January 1997
Dear Shareholders:
The U.S. stock market surpassed most expectations during 1996. After a 33%
advance in 1995, the Dow added another 26% in 1996, a year in which few market
analysts expected more than a 10% rise from stocks. The Federal Reserve's
repeated decision not to raise interest rates during 1996 helped pull a record
$220 billion into stock mutual funds during the year.
Foreign stock markets generally followed the U.S. lead during 1996, setting
record highs in most markets with the exception of Japan. Outside of the U.S.,
global bond yields declined during 1996. Despite rising oil prices, inflation
pressures were dampened by sluggish economic expansions, high unemployment,
global competition and tight fiscal policies. The U.S. dollar was strong during
1996, rising to a 46-month high against the yen in December.
For the most part, the economic climate is expected to remain favorable for the
financial markets in 1997. In the U.S., real GDP growth on the order of 2 1/2%
is forecast, the same rate as has been averaged since the expansion began in
1991; inflation is expected to be at or under 3% for the sixth straight year.
Expansions in Europe and Japan may become more convincing in the year ahead, but
surplus global capacity will keep inflation pressures under control. The year
ahead should see further increases in corporate profits, although the aggregate
gains are unlikely to match the double-digit percentage increases of 1992-96. If
our forecasts of moderate global growth and low inflation hold up, the Federal
Reserve may be content to keep U.S. interest rates at 1995-96 levels.
The coming year will probably prove more challenging for global stock markets.
With moderate growth and low inflation continuing, the economic backdrop has to
be judged favorable for stocks, albeit perhaps not so positive as to sustain the
market P/E multiple at 20 times expected 1997 earnings. After six years of
pretty steady advances, the U.S. stock market appears to be overdue for a 10%
correction. Stronger economic and corporate profit growth abroad may shift
global stock market leadership away from New York during 1997. Longer term, the
outlook remains favorable for high-quality stocks. Rising productivity and
profitability, low inflation, the possibility of greater fiscal discipline out
of Washington and other world capitals, and a population increasingly inclined
toward saving and investment constitute a positive environment for equity
securities into the 21st century.
As always, it should be understood that past performance does not guarantee
future results and that investment return and principal value will fluctuate so
that an investor's shares, when redeemed, may be worth more or less than their
original cost. Investing internationally entails additional risks, such as
currency fluctuations and potential political instability.
The paragraphs below discuss the various economic, political and market factors
affecting the investment performance of the Wright Equity and Fixed-Income Funds
during 1996 and prospects for the period ahead.
Sincerely,
Peter M. Donovan
President
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STOCK FUNDS
The U.S. stock market extended its streak of positive quarters to eight straight
with a healthy rise through the end of 1996. For the first two months of the
fourth quarter, stock prices had the support of a nice rally in the bond market.
But even in December, with the bond market in retreat, the bullish mood in
stocks prevailed. Comments by Fed Chairman Alan Greenspan implying that the U.S.
stock market had risen to speculative highs sparked a 4% sell-off early in the
month, but the bull market was back on track just as rapidly. Except for the
rise in long-term interest rates, market fundamentals remain sound: the economic
backdrop of moderate growth with low inflation that investors have found to
their liking since 1990 shows no sign of ending.
Price/earnings multiples have recently climbed to some of the highest levels in
decades. At 18.5 times forecast 1997 earnings, the S&P 500's current pricing
represents a premium of about one-third over the market's post-1960 average P/E.
These valuations increase the chances of a correction some time during 1997.
Nevertheless, the longer-term outlook is judged to be favorable for high-quality
stocks.
WRIGHT SELECTED BLUE CHIP EQUITIES FUND
In 1996, the Selected Blue Chip Equities Fund (WBC) had a 18.6% return, better
than the 17.0% return on Value Line's 1600-stock Composite and slightly behind
the Lipper stock fund average return of 19.2%. Contributing to the Fund's
results were strong performances in financial stocks and in electronics stocks.
In general, below-average returns for utilities, for foods and for printing and
publishing stocks detracted from 1996 performance. The Fund's relatively small
positions in the drug industry and in oil and gas stocks, good groups in 1996,
also hampered last year's results.
The major stock market averages derived much of their strength during 1996 from
an increasingly narrow group of big-cap market favorites. The phenomenon of
indexing has resulted in a "crowding in" among Dow and S&P-type stocks,
escalating P/E multiples among the select issues to levels reminiscent of the
early 1970s. While many of today's "nifty fifty" have risen to significant
overvaluations, however, stocks outside this inner circle generally remain
reasonably valued. At the beginning of 1997, Selected Blue Chip Equities
averaged a P/E multiple of 15.2, well below the S&P 500's P/E of 20.6. This P/E
discount for high-quality stocks is expected to make for improved relative
performance for the WBC Fund over the next several years.
WRIGHT JUNIOR BLUE CHIP EQUITIES FUND
The Wright Junior Blue Chip Fund (WJBC) achieved a total return of 17.5% for
1996, compared with 17.0% for Value Line and 16.1% for the Russell 2000. Junior
Blue Chip technology holdings generally performed well last year; the Fund also
benefited from its absence from the utility sector, which lagged in 1996.
At the end of 1996, Junior Blue Chip stock holdings were trading at an average
P/E multiple of 14.4, a 30% discount to the S&P 500's 20.6. Given their
relatively low valuations, the stocks in the Junior Blue Chip Fund are expected
to hold up comparatively well in the more challenging investment environment
envisioned for 1997. Longer term, the Junior Blue Chips should benefit from
their above-average growth prospects.
WRIGHT QUALITY CORE EQUITIES FUND
The Quality Core Fund (WQC) had a total investment return of 17.6%, as compared
with 17.0% for Value Line and 19.2% for the Lipper average. The Quality Core
Fund benefited from its large position in financial stocks and from an
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underweighting in utilities during 1996; technology holdings had a strong
performance. Stocks in the chemicals and construction industries had
below-average returns, holding back Fund performance.
The stocks in the Quality Core Fund at the end of 1996 are forecast to achieve a
12% average annual rate of earnings growth over the next five years, higher than
the 8% rate projected for the S&P 500 Composite. Because of the market's recent
focus on big-cap stocks such as those in the S&P 500, the somewhat smaller
stocks in the Quality Core are available at a pricing discount to the S&P. At
year end 1996, Quality Core stocks were trading at a P/E multiple of 16.2,
roughly 20% below the S&P 500's P/E of 20.6. Given this discount and their
superior growth prospects, the stocks in the Quality Core are judged to be
attractive holdings for long-term investors.
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND
The International Blue Chip Fund (WIBC) had a total investment return of 20.7%,
easily exceeding the 6.5% return for the FT/S&P World ex U.S. index. The IBC
Fund continued to benefit from its relatively large investment in Europe (53% of
holdings) and its low exposure to Japan (9%). In total, European markets
averaged a better-than-20% return last year, while Tokyo lost around 16% in
dollars. For the year 1996, strong markets in the U.K., France, the Netherlands,
Hong Kong, Denmark and Sweden contributed to the Fund's superior results.
Outside the United States, economic conditions are on a gradually rising trend.
In Europe, progress toward monetary union has brought restrictive fiscal
programs, lower inflation and reduced government deficits. Central bank policies
have been in the direction of easy money, keeping interest rates trending lower.
Japan's economic expansion continues to be irregular, which mostly reflects the
low level of confidence induced by the weak stock market and shaky banking
system.
While the U.S. economic expansion is almost seven years old, the economies of
Europe are in less mature stages of expansion. From this point, growth
comparisons - GDP and corporate earnings - will begin to favor markets outside
the U.S. Judging from the continuing slide in Tokyo share prices in the early
weeks of 1997, it is probably premature to say that Japan's long bear market is
over. Notwithstanding this weakness, it appears that global economic
fundamentals are beginning to lean in the direction of foreign markets;
investors will probably be well served by a healthy allocation to high-quality
foreign stocks.
FIXED-INCOME FUNDS
Treasury bond yields increased about 75 basis points during 1996. The retreat in
bond prices last year was without any basis in terms of inflation. The core
inflation rate came in under 3% for 1996 and is unlikely to accelerate any time
soon; competition will continue to force businesses to use productivity gains
rather than price increases to recover higher costs. Although the Federal
Reserve still maintains a bias toward tightening, we believe that 1997 is
unlikely to see higher interest rates so long as the economy stays on its
present course.
Conditions favor a small decline in interest rates in 1997: U.S. economic growth
remains moderate, inflation is under control globally, and Congress and the
Administration appear inclined to work together to lower the budget deficit. But
inflation fears die hard. Wright believes that the 30-year T-bond rate will stay
in a range of 6%-7% again in 1997, although by year end it should be closer to
6% than 7%. Reflecting the increased possibility of near-term profit taking in
bonds, in November Wright shortened the target durations in bond portfolios.
WRIGHT U.S. TREASURY MONEY MARKET FUND
For the year 1996, the Wright U.S. Treasury Money Market Fund (WTMM), whose
average maturity at year end was 84 days, returned 4.8%, the same as the average
money market fund but slightly below the 5.1% return on 90-day Treasury bills.
For most of the fourth quarter, the coupon equivalent yield on 90-day Treasury
bills was close to the
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5.1% rate at which the quarter began. For the quarter, the WTMM Fund had a
total investment return of 1.2%, matching the return on the average money market
fund.
In the year ahead, the return on cash equivalent securities is likely to be in
the 5% range as T-bill rates stay close to their 1996 range of 4.9%-5.4%. With
the core rate of inflation likely to stay under 3% in 1997, Wright does not
expect the Fed to raise interest rates in the near future. This will limit the
upper range of short-term yields; fear of inflation, however unfounded, will
probably persist, limiting the downside.
WRIGHT U.S. TREASURY NEAR TERM FUND
The Wright U.S. Treasury Near-Term Fund (WNTB) had a total return of 3.9% for
all of 1996, below the 5.1% return for 90-day Treasury bills. The WNTB Fund
achieved a 1.7% return in the fourth quarter of 1996, topping the 1.2% return on
90-day Treasury bills and the average money-market fund for the period.
At year end 1996, the Fund's average duration was 2.0 years, compared with 1.7
years three months earlier. Yields on two-year Treasury issues declined 22 basis
points in the fourth quarter. At the end of 1996, 97% of the Fund's assets were
U.S. Treasury securities with the remaining 3% in U.S. government agency
securities. At December 31, the WNTB Fund's yield to maturity was 5.9%, the same
as three months earlier.
WRIGHT U.S. TREASURY FUND
The Wright U.S. Treasury Fund (WUSTB) declined 1.2% during 1996, compared with a
decline of 0.8% for the Lehman long-term government bond index and a gain of
4.7% for the Lipper fixed-income fund average. Over the last five years, the
WUSTB has had an average annual rate of total return of 7.5% compared to 6.7%
for the Lipper average.
At year end 1996, the Wright U.S. Treasury Fund had an average yield to maturity
of 6.4%, down from 6.7% at September 30. The Fund's average duration was 6.0
years, down from 7.0 years.
WRIGHT TOTAL RETURN BOND FUND
Reflecting the rise in bond yields during the first half of 1996, partly offset
by declining yields over the second half, the Wright Total Return Bond Fund
(WTRB) had a total investment return of 0.9% in 1996, compared with 2.9% for the
Lehman Government/Corporate Index. Since inception 13 1/4 years ago, the Fund
has had an annual rate of return of 9.8%, compared with 8.9% for the Lipper
fixed-income fund average.
In the fourth quarter, the WTRB had a total return of 3.6% compared to 3.1% for
the Lehman Brothers Government/Corporate Composite Index and 2.8% for the Lipper
average. During the fourth quarter, the duration of this Fund was shortened to
5.9 years from 6.8. At year end, the Fund's yield to maturity was 6.4%, down
from 6.9% at the end of the third quarter.
WRIGHT CURRENT INCOME FUND
For 1996, the Wright Current Income Fund (WCIF) had a total investment return of
4.3%, slightly ahead of the 4.0% earned by the Morningstar government mortgage
fund average. With mortgage rates declining in the fourth quarter of 1996, WCIF
earned a total investment return of 2.9% for the period, as compared with a 2.9%
return on the Morningstar fund average.
The Wright Current Income Fund is invested in mortgage-based securities (Ginnie
Maes) backed by the U.S. government. Its relatively high current yield of 6.6%
at the end of 1996 was more than three percentage points above the inflation
rate, making it an attractive choice for income-oriented investors.
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WRIGHT MANAGED EQUITY TRUST - EQUITY FUNDS
WRIGHT SELECTED BLUE CHIP EQUITIES FUND Growth of $10,000 invested
1/1/87* through 12/31/96
Annual Total Return
Lst 1 Yr Lst 5 Yrs Lst 10 Yrs
Wright Selected Blue Chip Fund +18.6% + 9.8% +12.0%
Lipper Growth Funds +19.2% +12.7% +13.0%
NYSE +21.9% +14.5% +14.5%
Wright U.S. Fiduciary Equity Index +19.1% +16.9% +14.4%
The cumulative total return of a U.S. $10,000 investment in the WRIGHT
SELECTED BLUE CHIP EQUITIES FUND on 1/1/87 would have grown to $31,085 by
December 31, 1996.
The following plotting points are used for comparison in the total
investment return mountain chart.
Date Wright Selected Lipper NYSE Wright U.S. Fiduciary
Blue Chip Equities Fund Growth Funds Equity Index
12/31/86 $10,000 $10,000 $10,000 $10,000
12/31/87 $9,817 $10,110 $10,294 $9,850
12/31/88 $11,909 $11,529 $12,077 $12,352
12/31/89 $14,835 $14,474 $15,614 $14,491
12/31/90 $14,345 $13,681 $15,018 $12,504
12/31/91 $19,507 $18,604 $19,739 $17,572
12/31/92 $20,426 $20,054 $21,326 $21,320
12/31/93 $20,848 $22,181 $23,677 $24,781
12/31/94 $20,114 $21,705 $23,649 $24,959
12/31/95 $26,216 $28,387 $31,897 $32,227
12/31/96 $31,085 $33,846 $38,886 $38,387
WRIGHT MANAGED EQUITY TRUST - EQUITY FUNDS
WRIGHT JUNIOR BLUE CHIP EQUITIES FUND Growth of $10,000 invested 1/1/87
through 12/31/96
Annual Total Return
Lst 1 Yr Lst 5 Yrs Lst 10 Yrs
Wright Junior Blue Chip Fund +17.5% + 9.0% + 9.2%
Value Line Stock Index +17.0% +12.3% + 8.9%
NYSE +21.9% +14.5% +14.5%
Wright U.S. Fiduciary Equity Index +19.1% +16.9% +14.4%
The cumulative total return of a U.S. $10,000 investment in the
WRIGHT JUNIOR BLUE CHIP EQUITIES FUND on 1/1/87 would have grown to $24,146
by December 31, 1996.
The following plotting points are used for comparison in the total investment
return mountain chart.
Date Wright Junior Value Line NYSE Wright U.S. Fiduciary
Blue Chip Stock Index Equity Index
Equities Fund
12/31/86 $10,000 $10,000 $10,000 $10,000
12/31/87 $9,642 $9,180 $10,294 $9,850
12/31/88 $11,108 $10,935 $12,077 $12,352
12/31/89 $12,843 $12,563 $15,614 $14,491
12/31/90 $11,480 $9,931 $15,018 $12,504
12/31/91 $15,726 $13,132 $19,739 $17,572
12/31/92 $16,242 $14,577 $21,326 $21,320
12/31/93 $17,529 $16,693 $23,677 $24,781
12/31/94 $17,048 $16,261 $23,649 $24,959
12/31/95 $20,544 $20,053 $31,897 $32,227
12/31/96 $24,146 $23,470 $38,886 $38,387
WRIGHT MANAGED EQUITY TRUST - EQUITY FUNDS
WRIGHT QUALITY CORE EQUITIES FUND
Growth of $10,000 invested 1/1/87 through 12/31/96
Annual Total Return
Lst 1 Yr Lst 5 Yrs Lst 10 Yrs
Wright Quality Core Equities Fund +17.6% +10.4% +12.4%
Lipper Growth Funds +19.2% +12.7% +13.0%
NYSE +21.9% +14.5% +14.5%
Wright U.S. Fiduciary Equity Index +19.1% +16.9% +14.4%
The cumulative total return of a U.S. $10,000 investment in the
WRIGHT QUALITY CORE EQUITIES FUND on 1/1/7 would have grown to
$32,135 by December 31, 1996.
The following plotting points are used for comparison in the
total investment return mountain chart.
Date Wright Quality Core Lipper NYSE Wright U.S. Fiduciary
Equities Fund Growth Funds Equity Index
12/31/86 $10,000 $10,000 $10,000 $10,000
12/31/87 $10,101 $10,110 $10,294 $9,850
12/31/88 $11,784 $11,529 $12,077 $12,352
12/31/89 $14,497 $14,474 $15,614 $14,491
12/31/90 $14,078 $13,681 $15,018 $12,504
12/31/91 $19,555 $18,604 $19,739 $17,572
12/31/92 $21,123 $20,054 $21,326 $21,320
12/31/93 $21,334 $22,181 $23,677 $24,781
12/31/94 $21,179 $21,705 $23,649 $24,959
12/31/95 $27,317 $28,387 $31,897 $32,227
12/31/96 $32,135 $33,846 $38,886 $38,387
NOTES: The investment results of Wright U.S. Equity Funds and Lipper's
average of 775 Growth Funds are net of all fees and expenses charged to the
Funds. No fees or expenses have been deducted from the other averages. 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.
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WRIGHT MANAGED EQUITY TRUST - EQUITY FUNDS
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND Growth of $10,000 invested 10/1/89*
through 12/31/96
Annual Total Return
Lst 1 Yr Lst 5 Yrs Since Incept*
Wright Int'l Blue Chip Equities Fund +20.7% +10.7% +9.0%
FT World Ex U.S. Index + 6.5% + 7.9% +4.1%
Wright Int'l Fiduciary Equity Index + 5.7% + 7.1% +4.8%
The cumulative total return of a U.S. $10,000 investment in the
WRIGHT INT'L BLUE CHIP EQUITIES FUND on 10/1/89 would have grown to $18,696 by
December 31, 1996.
The following plotting points are used for comparison in the total investment
return mountain chart.
Date Wright Int'l Blue Chip FT World Wright Int'l Fiduciary
Equities Fund Ex U.S Index Equity Index
09/30/89 $10,000 $10,000 $10,000
12/31/89 $10,312 $10,490 $10,587
12/31/90 $9,599 $8,064 $8,946
12/31/91 $11,251 $9,138 $9,971
12/31/92 $10,807 $7,944 $8,383
12/31/93 $13,858 $10,507 $11,362
12/31/94 $13,631 $11,386 $12,576
12/31/95 $15,486 $12,575 $13,284
12/31/96 $18,696 $13,393 $14,045
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 International Blue Chip Equities Fund are net of all fees and expenses
charged to the Fund. No fees or expenses have been deducted from the other
averages. 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.
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WRIGHT MANAGED INCOME TRUST - BOND FUNDS
WRIGHT U.S. TREASURY NEAR TERM FUND
Growth of $10,000 invested 1/1/87 through 12/31/96
Annual Total Return
Lst 1 Yr Lst 5 Yrs Lst 10 Yrs
Wright U.S. Treasury Near Term Fund +3.9% +5.3% +6.7%
Lehman Gov't/Corp Index +2.9% +7.2% +8.4%
Morningstar Gov't (1-5 Yrs) Funds +3.2% +4.8% +6.5%
The cumulative total return of a U.S. $10,000 investment in the WRIGHT U.S.
TREASURY NEAR TERM FUND on 1/1/87 would have grown to $19,042 by December 31,
1996.
The following plotting points are used for comparison in the total
investment return mountain chart.
Date Wright U.S.Treasury Lehman Gov't/Corp Morningstar Gov't
Near Term Fund Index (1-5 Yrs) FundS
12/31/86 $10,000 $10,000 $10,000
12/31/87 $10,234 $10,229 $10,292
12/31/88 $10,822 $11,005 $10,974
12/31/89 $12,031 $12,572 $12,160
12/31/90 $13,021 $13,613 $13,205
12/31/91 $14,724 $15,808 $14,937
12/31/92 $15,645 $17,006 $15,767
12/31/93 $16,890 $18,882 $16,731
12/31/94 $16,367 $18,220 $18,255
12/31/96 $19,042 $22,356 $18,843
WRIGHT MANAGED INCOME TRUST - BOND FUNDS
WRIGHT U.S. TREASURY FUND
Growth of $10,000 invested 1/1/87 through 12/31/96
Annual Total Return
Lst 1 Yr Lst 5 Yrs Lst 10 Yrs
Wright U.S. Treasury Fund -1.3% +7.5% +8.1%
Lehman Gov't/Corp Index +2.9% +7.2% +8.4%
Lipper Fixed Income Funds +4.7% +6.7% +7.4%
The cumulative total return of a U.S. $10,000 investment in the WRIGHT U.S.
TREASURY FUND on 1/1/87 would have grown to $21,778 by December 31, 1996.
The following plotting points are used for comparison in the total
investment return mountain chart.
Date Wright U.S. Lehman Gov't/Corp Lipper Fixed
Treasury Fund Index Income Funds
12/31/86 $10,000 $10,000 $10,000
12/31/87 $9,704 $10,229 $10,127
12/31/88 $10,442 $11,005 $10,928
12/31/89 $12,140 $12,572 $11,958
12/31/90 $12,908 $13,613 $12,467
12/31/91 $15,175 $15,808 $14,733
12/31/92 $16,247 $17,006 $15,892
12/31/93 $18,831 $18,882 $17,429
12/31/94 $17,207 $18,220 $16,857
12/31/95 $22,057 $21,726 $19,423
12/31/96 $21,778 $22,356 $20,334
<PAGE>
WRIGHT MANAGED INCOME TRUST - BOND FUNDS
WRIGHT TOTAL RETURN BOND FUND
Growth of $10,000 invested 1/1/87 through 12/31/96
Annual Total Return
Lst 1 Yr Lst 5 Yrs Lst 10 Yrs
Wright Total Return Bond Fund +0.9% +6.5% +7.0%
Lehman Gov't/Corp Index +2.9% +7.2% +8.4%
Lipper Fixed Income Funds +4.7% +6.7% +7.4%
The cumulative total return of a U.S. $10,000 investment in the
WRIGHT TOTAL RETURN BOND FUND on 1/1/87 would have grown to $19,608 by
December 31, 1996.
The following plotting points are used for comparison in the total investment
return mountain chart.
Date Wright Total Return Lehman Gov't/Corp Lipper Fixed
Bond Fund Index Income Funds
12/31/86 $10,000 $10,000 $10,000
12/31/87 $9,687 $10,229 $10,127
12/31/88 $10,389 $11,005 $10,928
12/31/89 $11,800 $12,572 $11,958
12/31/90 $12,424 $13,613 $12,467
12/31/91 $14,335 $15,808 $14,733
12/31/92 $15,357 $17,006 $15,892
12/31/93 $17,050 $18,882 $17,429
12/31/94 $15,933 $18,220 $16,857
12/31/95 $19,433 $21,726 $19,423
12/31/96 $19,608 $22,356 $20,334
WRIGHT MANAGED INCOME TRUST - BOND FUNDS
WRIGHT CURRENT INCOME FUND
Growth of $10,000 invested 5/1/87* through 12/31/96
Annual Total Return
Lst 1 Yr Lst 5 Yrs Since Incept*
Wright Current Income Fund +4.3% +6.2% +8.5%
Lehman Gov't/Corp Index +2.9% +7.2% +8.8%
Lehman Mtg-Backed index +5.3% +6.7% +9.2%
The cumulative total return of a U.S. $10,000 investment in the
WRIGHT CURRENT INCOME BOND FUND on 5/1/87 would have grown to $22,082 by
December 31, 1996.
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
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
12/31/96 $22,082 $22,634 $23,346
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 1645 Fixed Income
Funds and Morningstar's average of 114 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.
<PAGE>
<TABLE>
<CAPTION>
N.A.V. Distri- Distri- 12 Month 5 Year 10 Year Cum.
Period Per bution bution Shares Invstmnt Invstmnt Invstmnt Invstmnt
Ending Share $ P/S in Shares Owned Value Return Return Return Return
(Annualized) (Annualized)(Annualized)
- -------------------------------------------------------------------------------------------------------------------------------
THE EQUITY TRUST -- WRIGHT SELECTED BLUE CHIP EQUITIES FUND (WBC)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1/4/83 $10.00 100.00 $1,000.00
Dec. 95 16.83 0.830 0.050060 268.85 4,524.70 30.34% 12.82% 11.59% 12.32%
Jan. 96 17.11 268.85 4,599.98 31.27% 12.30% 11.76% 12.38%
Feb. 96 17.38 268.85 4,672.57 26.73% 11.51% 11.11% 12.44%
Mar. 96 17.56 0.050 0.002851 269.61 4,734.42 27.61% 10.68% 10.69% 12.46%
Apr. 96 17.78 269.61 4,793.73 26.44% 11.24% 10.80% 12.49%
May 96 18.16 269.61 4,896.19 25.44% 11.00% 10.55% 12.58%
Jun. 96 18.17 0.050 0.002776 270.36 4,912.48 22.97% 11.62% 10.46% 12.53%
Jul. 96 17.27 270.36 4,669.16 13.19% 9.72% 10.59% 12.02%
Aug. 96 17.82 270.36 4,817.86 15.72% 9.61% 10.33% 12.20%
Sep. 96 18.51 0.050 0.002744 271.10 5,018.14 16.32% 10.80% 11.64% 12.46%
Oct. 96 18.71 271.10 5,072.36 18.14% 10.65% 11.24% 12.46%
Nov. 96 19.79 271.10 5,365.15 20.29% 12.41% 11.70% 12.84%
Dec. 96 17.73 2.040 0.116173 302.60 5,365.08 18.57% 9.77% 12.01% 12.76%
- -------------------------------------------------------------------------------------------------------------------------------
THE EQUITY TRUST -- WRIGHT JUNIOR BLUE CHIP EQUITIES FUND (WJBC)
1/15/85 $10.00 100.00 $1,000.00
Dec. 95 10.85 1.220 0.112442 251.19 2,725.41 20.51% 12.34% 8.05% 9.58%
Jan. 96 10.93 251.19 2,745.51 22.97% 10.88% 8.14% 9.58%
Feb. 96 11.18 251.19 2,808.31 19.82% 9.80% 7.59% 9.73%
Mar. 96 11.23 0.045 0.004032 252.20 2,832.24 20.41% 8.83% 7.03% 9.74%
Apr. 96 11.28 252.20 2,844.85 18.25% 9.35% 7.06% 9.70%
May 96 11.55 252.20 2,912.94 19.97% 9.01% 6.80% 9.86%
Jun. 96 11.46 0.025 0.002187 252.75 2,896.57 16.23% 9.29% 6.84% 9.73%
Jul. 96 10.71 252.75 2,707.00 3.83% 7.66% 7.12% 9.01%
Aug. 96 11.21 252.75 2,833.38 6.92% 8.10% 7.36% 9.37%
Sep. 96 11.67 0.025 0.002193 253.31 2,956.11 8.74% 9.22% 8.64% 9.70%
Oct. 96 11.80 253.31 2,989.04 12.37% 8.92% 8.47% 9.73%
Nov. 96 12.30 253.31 3,115.70 14.23% 10.34% 8.79% 10.04%
Dec. 96 8.86 3.700 0.427252 361.54 3,203.20 17.53% 8.95% 9.22% 10.22%
- ---------------------------------------------------------------------------------------------------------------------------------
THE EQUITY TRUST -- WRIGHT QUALITY CORE EQUITIES FUND (WQC)
7/22/85 $10.00 100.00 $1,000.00
Dec. 95 12.65 1.880 0.150641 286.43 3,623.34 28.98% 14.18% 12.31% 13.12%
Jan. 96 12.88 286.43 3,689.24 29.85% 13.19% 12.45% 13.20%
Feb. 96 13.12 286.43 3,757.99 26.35% 12.03% 11.76% 13.29%
Mar. 96 13.26 0.035 0.002642 287.19 3,808.12 26.66% 11.31% 11.28% 13.32%
Apr. 96 13.41 287.19 3,851.20 25.92% 11.61% 11.42% 13.33%
May 96 13.65 287.19 3,920.12 25.33% 11.00% 11.06% 13.41%
Jun. 96 13.55 0.030 0.002232 287.83 3,900.09 21.80% 11.65% 10.84% 13.25%
Jul. 96 12.85 287.83 3,698.61 11.53% 9.73% 10.96% 12.60%
Aug. 96 13.32 287.83 3,833.89 14.24% 9.90% 10.77% 12.86%
Sep. 96 13.90 0.030 0.002193 288.46 4,009.60 16.05% 11.20% 12.23% 13.21%
Oct. 96 14.03 288.46 4,047.10 17.90% 11.26% 11.74% 13.20%
Nov. 96 14.82 288.46 4,274.99 19.59% 13.11% 12.12% 13.64%
Dec. 96 12.45 2.300 0.186840 342.36 4,262.34 17.63% 10.44% 12.38% 13.51%
<PAGE>
- ---------------------------------------------------------------------------------------------------------------------------------
THE EQUITY TRUST -- WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC)
7/22/85 $10.00 100.00 $1,000.00
Dec. 95 14.77 0.100 0.006873 106.21 1,568.69 13.61% 10.04% -- 7.42%
Jan. 96 15.12 106.21 1,605.87 20.06% 9.89% -- 7.71%
Feb. 96 15.30 106.21 1,624.98 18.32% 8.30% -- 7.81%
Mar. 96 15.77 106.21 1,674.90 15.65% 10.00% -- 8.20%
Apr. 96 16.12 106.21 1,712.08 15.03% 10.14% -- 8.45%
May 96 16.31 106.21 1,732.26 14.12% 10.51% -- 8.53%
Jun. 96 16.36 106.21 1,737.57 13.29% 11.57% -- 8.47%
Jul. 96 16.03 106.21 1,702.52 7.03% 10.15% -- 8.04%
Aug. 96 16.38 106.21 1,739.69 13.66% 10.49% -- 8.28%
Sep. 96 16.73 106.21 1,776.86 14.28% 10.26% -- 8.50%
Oct. 96 17.00 106.21 1,805.54 16.76% 10.37% -- 8.64%
Nov. 96 17.54 106.21 1,862.89 22.05% 11.52% -- 9.01%
Dec. 96 16.69 1.110 0.068434 113.48 1,893.98 20.73% 10.69% -- 9.00%
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
THE INCOME TRUST -- WRIGHT U.S. TREASURY MONEY MARKET FUND (WTMM) - 1996
<TABLE>
<CAPTION>
MONTHLY CUMULATIVE ANNUALIZED INVESTMENT RETURN
MONTH NET INCOME RETURN ______________________________________
ENDING PER SHARE PER SHARE (a) 1 Month 3 Month Cumulative
- ----------------------------------------------------------------------------------------------------------------------------------
$1,000.00
<S> <C> <C> <C> <C> <C>
Jan. 31 $0.004108629 1,004.11 4.84% -- 4.84%
Feb. 29 0.003776815 1,007.90 4.75% -- 4.80%
Mar. 31 0.003977021 1,011.91 4.68% 4.76% 4.76%
Apr. 30 0.003805197 1,015.76 4.63% 4.69% 4.73%
May 31 0.003923646 1,019.75 4.62% 4.64% 4.70%
Jun. 30 0.003831601 1,023.65 4.66% 4.64% 4.70%
Jul. 31 0.004024233 1,027.77 4.75% 4.70% 4.77%
Aug. 31 0.004059175 1,031.94 4.79% 4.76% 4.79%
Sep. 31 0.003935537 1,036.01 4.80% 4.80% 4.81%
Oct. 31 0.004079356 1,040.23 4.82% 4.82% 4.83%
Nov. 31 0.003926509 1,044.32 4.79% 4.82% 4.84%
Dec. 31 0.004000559 1,048.49 4.72% 4.80% 4.85%
----------
Total $0.047448278
(a): Assumes reinvestment of monthly dividends.
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------------
N.A.V. Distri- Distri- 12 Month 5 Year 10 Year Cum.
Period Per bution bution Shares Invstmnt Invstmnt Invstmnt Invstmnt
Ending Share $ P/S in Shares Owned Value Return Return Return Return
(Annualized) (Annualized)(Annualized)
- ----------------------------------------------------------------------------------------------------------------------------------
THE INCOME TRUST -- WRIGHT U.S. TREASURY NEAR TERM FUND (WNTB)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
7/25/83 $10.00 100.000 $1,000.00
12/95 10.45 $0.053142 0.005085 265.301 2,772.40 11.93% 7.07% 7.56% 8.55%
1/96 10.48 0.052798 0.005038 266.638 2,794.36 11.34% 7.05% 7.59% 8.55%
2/96 10.37 0.050144 0.004835 267.927 2,778.40 8.98% 6.77% 7.20% 8.45%
3/96 10.30 0.052477 0.005095 269.292 2,773.71 8.24% 6.64% 6.90% 8.38%
4/96 10.24 0.050922 0.004973 270.631 2,771.27 7.08% 6.44% 6.81% 8.31%
5/96 10.21 0.051530 0.005047 271.997 2,777.09 4.69% 6.37% 7.00% 8.27%
6/96 10.22 0.049114 0.004806 273.304 2,793.17 4.67% 6.48% 6.80% 8.27%
7/96 10.21 0.050606 0.004957 274.659 2,804.27 5.05% 6.37% 6.75% 8.24%
8/96 10.18 0.051114 0.005021 276.038 2,810.07 4.53% 6.01% 6.52% 8.20%
9/96 10.22 0.049124 0.004807 277.365 2,834.67 4.91% 5.86% 6.75% 8.22%
10/96 10.28 0.050141 0.004878 278.718 2,865.22 5.09% 5.87% 6.72% 8.26%
11/96 10.31 0.048871 0.004740 280.039 2,887.20 4.87% 5.79% 6.69% 8.26%
12/96 10.24 0.050356 0.004918 281.416 2,881.70 3.91% 5.28% 6.65% 8.19%
---------
Total $0.604
- --------------------------------------------------------------------------------------------------------------------------------
<PAGE>
THE INCOME TRUST -- WRIGHT U.S. TREASURY FUND (WUSTB)
7/25/83 $10.00 100.000 $1,000.00
12/95 14.71 $0.067219 0.004566 263.195 3,871.60 28.18% 11.31% 10.21% 11.51%
1/96 14.63 0.073060 0.004994 264.509 3,869.77 24.99% 11.07% 10.17% 11.41%
2/96 13.91 0.065579 0.004715 265.756 3,696.67 16.16% 9.98% 8.88% 10.93%
3/96 13.65 0.064552 0.004729 267.013 3,644.73 13.84% 9.59% 8.11% 10.73%
4/96 13.43 0.056895 0.004236 268.144 3,601.18 10.64% 9.07% 7.98% 10.56%
5/96 13.31 0.061404 0.004613 269.381 3,585.47 2.57% 8.98% 8.34% 10.45%
6/96 13.45 0.060585 0.004507 270.596 3,636.80 2.89% 9.44% 8.02% 10.50%
7/96 13.39 0.063165 0.004717 271.872 3,640.37 4.62% 9.16% 8.03% 10.43%
8/96 13.27 0.062508 0.004710 273.153 3,624.74 2.18% 8.36% 7.58% 10.33%
9/96 13.46 0.061306 0.004555 274.397 3,693.38 2.39% 8.12% 8.13% 10.42%
10/96 13.77 0.063993 0.004647 275.672 3,796.00 2.55% 8.64% 8.19% 10.57%
11/96 14.03 0.061898 0.004412 276.888 3,884.74 2.68% 9.03% 8.26% 10.70%
12/96 13.58 0.234859 0.017294 281.677 3,825.17 -1.23% 7.49% 8.09% 10.50%
---------
Total $0.926
- ----------------------------------------------------------------------------------------------------------------------------------
THE INCOME TRUST -- WRIGHT TOTAL RETURN BOND FUND (WTRB)
7/25/83 $10.00 100.000 $1,000.00
12/95 13.12 $0.064282 0.004900 264.767 3,473.75 21.97% 9.36% 8.88% 10.53%
1/96 13.11 0.061674 0.004704 266.013 3,487.43 20.11% 9.22% 8.96% 10.49%
2/96 12.61 0.059875 0.004748 267.276 3,370.35 13.13% 8.37% 7.73% 10.12%
3/96 12.39 0.061510 0.004964 268.603 3,327.99 10.83% 8.00% 7.00% 9.94%
4/96 12.20 0.058748 0.004815 269.896 3,292.74 8.08% 7.55% 6.87% 9.78%
5/96 12.08 0.058217 0.004819 271.197 3,276.06 2.13% 7.32% 7.23% 9.67%
6/96 12.21 0.056209 0.004604 272.446 3,326.56 2.87% 7.73% 6.92% 9.74%
7/96 12.15 0.058679 0.004830 273.761 3,326.20 3.75% 7.46% 6.95% 9.67%
8/96 12.06 0.059898 0.004967 275.121 3,317.96 2.07% 6.90% 6.52% 9.58%
9/96 12.24 0.059271 0.004842 276.453 3,383.79 2.92% 6.84% 7.07% 9.69%
10/96 12.51 0.060335 0.004823 277.787 3,475.11 3.94% 7.24% 7.14% 9.84%
11/96 12.74 0.058641 0.004603 279.065 3,555.29 4.20% 7.48% 7.17% 9.97%
12/96 12.50 0.059626 0.004770 280.396 3,504.95 0.87% 6.46% 6.97% 9.78%
---------
Total $0.709
- ----------------------------------------------------------------------------------------------------------------------------------
THE INCOME TRUST -- WRIGHT CURRENT INCOME FUND (WCIF)
4/14/87 $10.00 100.000 $1,000.00
12/95 10.67 $0.056552 0.005300 198.130 2,114.04 17.46% 8.31% -- 8.97%
1/96 10.68 0.056265 0.005268 199.173 2,127.17 15.58% 8.15% -- 8.96%
2/96 10.49 0.056629 0.005398 200.249 2,100.61 11.10% 7.73% -- 8.72%
3/96 10.39 0.056195 0.005409 201.332 2,091.84 10.22% 7.49% -- 8.58%
4/96 10.30 0.056334 0.005469 202.433 2,085.06 8.27% 7.26% -- 8.46%
5/96 10.18 0.055144 0.005417 203.529 2,071.93 3.93% 6.99% -- 8.31%
6/96 10.26 0.059011 0.005752 204.700 2,100.22 4.78% 7.29% -- 8.39%
7/96 10.25 0.055297 0.005395 205.804 2,109.49 5.28% 7.06% -- 8.36%
8/96 10.18 0.056205 0.005521 206.941 2,106.66 3.96% 6.65% -- 8.27%
9/96 10.30 0.056981 0.005532 208.085 2,143.28 4.79% 6.64% -- 8.39%
10/96 10.46 0.056973 0.005447 209.219 2,188.43 6.22% 6.77% -- 8.55%
11/96 10.56 0.057039 0.005401 210.349 2,221.28 6.43% 7.00% -- 8.64%
12/96 10.43 0.057090 0.005474 211.500 2,205.95 4.31% 6.17% -- 8.48%
---------
Total $0.675
</TABLE>
<PAGE>
WRIGHT SELECTED BLUE CHIP EQUITIES FUND (WBC)
PORTFOLIO OF INVESTMENTS
December 31, 1996
===============================================================================
Shares Value
- -------------------------------------------------------------------------------
Equity Interests -- 97.7%
APPAREL -- 1.1%
VF Corp............................. 34,830 $ 2,351,025
-----------
AUTOMOTIVE -- 3.3%
Eaton Corp.......................... 31,500 $ 2,197,124
Echlin Inc.......................... 57,500 1,818,438
Johnson Controls.................... 34,100 2,826,038
-----------
$ 6,841,600
-----------
BEVERAGES -- 1.0%
Anheuser Busch...................... 51,500 $ 2,060,000
-----------
CHEMICALS -- 6.7%
Goodyear Tire & Rubber.............. 50,000 $ 2,568,750
Great Lakes Chemical Corp........... 29,900 1,397,824
Lubrizol Corp....................... 79,600 2,467,600
Morton International Inc............ 63,000 2,567,250
PPG Industries...................... 42,100 2,362,863
Rohm & Haas Co...................... 30,900 2,522,213
-----------
$ 13,886,500
-----------
CONSTRUCTION -- 5.7%
Caterpillar Tractor, Inc............ 18,500 $ 1,392,125
Fleetwood Enterprises, Inc.......... 88,200 2,425,500
Medusa Corporation.................. 65,000 2,234,375
Oakwood Homes Corp*................. 76,600 1,752,225
Toll Brothers....................... 100,000 1,950,000
Vulcan Materials Co................. 35,000 2,130,625
-----------
$ 11,884,850
-----------
DIVERSIFIED -- 5.1%
Crane Company....................... 83,250 $ 2,414,250
Lancaster Colony Corp............... 62,000 2,852,000
National Service Industries......... 65,800 2,459,275
Teleflex, Incorporated.............. 55,900 2,913,788
-----------
$ 10,639,313
-----------
DRUGS, COSMETICS & HEALTH CARE -- 2.2%
Alberto Culver Co. Class A.......... 57,700 $ 2,380,125
Bristol-Myers Squibb Co............. 20,664 2,247,210
-----------
$ 4,627,335
-----------
ELECTRICAL -- 0.9%
Juno Lighting Co.................... 110,000 $ 1,760,000
-----------
ELECTRONICS -- 9.5%
Compaq Computer*.................... 29,300 $ 2,175,525
Dallas Semiconductor Corp........... 85,000 1,955,000
EMC Corp./Mass...................... 65,000 2,153,125
Harman Int'l. Industries............ 44,000 2,447,500
National Computer System Inc........ 95,000 2,422,500
Raytheon Co......................... 46,960 2,259,950
Seagate Technology, Inc............. 69,400 2,741,300
Sun Microsystems Inc................ 80,600 2,070,413
Varian Associates Inc............... 29,000 1,475,374
-----------
$ 19,700,687
-----------
FINANCIAL -- 14.9%
AFLAC Corp.......................... 52,250 $ 2,233,688
American International Group........ 19,000 2,056,750
Bancorp Hawaii Inc.................. 55,975 2,350,950
Commerce Bancshares, Inc............ 52,421 2,424,471
Compass Bancshares.................. 69,500 2,762,625
Edwards (A.G.), Inc................. 82,300 2,767,338
First Hawaiian Inc.................. 71,700 2,509,500
First Virginia Banks Inc............ 44,865 2,147,912
MBIA Inc............................ 22,000 2,227,500
Raymond James Financial Corp........ 76,800 2,313,600
Southern National Corp.............. 59,300 2,149,625
Southtrust Corporation.............. 76,475 2,667,066
Star Banc Corp...................... 25,265 2,321,220
-----------
$ 30,932,245
-----------
FOOD -- 1.2%
Universal Foods Corp................ 72,000 $ 2,538,000
-----------
<PAGE>
MACHINERY & EQUIPMENT -- 4.2%
Briggs & Stratton Corp.............. 52,080 $ 2,423,520
Dover Corp.......................... 43,300 2,175,825
Ingersoll Rand Co................... 50,000 2,225,000
Pitney-Bowes Inc.................... 37,000 2,016,500
-----------
$ 8,840,845
-----------
METAL PRODUCERS -- 0.9%
Carpenter Technology................ 50,000 $ 1,831,250
-----------
METAL PRODUCTS MANUFACTURERS -- 4.1%
Harsco Corp......................... 26,500 $ 1,815,250
Snap-On Inc......................... 72,900 2,597,063
Trimas Corp. Common Stock........... 75,000 1,790,625
Trinity Industries.................. 60,000 2,250,000
-----------
$ 8,452,938
-----------
OIL, GAS & COAL -- 1.4%
Exxon Corporation................... 29,300 $ 2,871,400
-----------
PAPER -- 1.0%
Sonoco Products Co.................. 81,000 $ 2,095,875
-----------
PRINTING & PUBLISHING -- 5.3%
American Greetings Corp............. 78,000 $ 2,213,250
Banta (George) Corp................. 85,049 1,945,484
Gannett Co. Inc..................... 27,780 2,080,028
Lee Enterprises, Inc................ 102,200 2,376,150
Standard Register................... 75,000 2,437,500
-----------
$ 11,052,412
-----------
RECREATION -- 4.0%
Kingworld Productions Inc........... 58,000 $ 2,138,750
Luby's Cafeteria, Inc............... 102,550 2,038,181
Ryan's Family Steak Houses*......... 300,000 2,062,500
Sturm, Ruger & Company, Inc......... 117,200 2,270,750
-----------
$ 8,510,181
-----------
RETAILERS -- 7.5%
Dillard Dept. Stores................ 57,000 $ 1,759,875
Family Dollar Stores................ 105,000 2,139,375
Hannaford Brothers Company.......... 85,100 2,893,400
The Limited Inc..................... 75,000 1,378,125
May Department Stores............... 105,000 2,000,900
Price/Costco Inc*................... 85,000 2,638,125
Rite Aid Corp....................... 69,800 2,774,550
-----------
$ 15,584,350
-----------
TRANSPORTATION -- 3.6%
ASA Holdings, Inc................... 68,000 $ 1,487,500
Comair Holdings, Inc................ 100,000 2,400,000
Illinois Central Corp............... 55,000 1,760,000
Werner Enterprises Inc.............. 100,000 1,812,500
-----------
$ 7,460,000
-----------
UTILITIES -- 9.7%
Ameritech Corp...................... 40,140 $ 2,433,488
Century Telephone Enterprises....... 75,000 2,315,625
Citizens Utilities Cl. A............ 152,400 1,657,350
DQE, Inc............................ 76,800 2,227,200
NIPSCO Industries Inc............... 64,600 2,559,775
Questar Corp........................ 60,000 2,205,000
Sprint Corp......................... 59,800 2,384,525
TECO Energy, Inc.................... 98,000 2,364,250
Wisconsin Energy Corp............... 74,350 1,998,156
-----------
$ 20,145,369
-----------
<PAGE>
MISCELLANEOUS -- 4.4%
Arrow Electronics, Inc.............. 35,000 $ 1,872,500
Genuine Parts Co.................... 54,050 2,405,225
Leggett & Platt Inc................. 74,600 2,583,025
Marshall Industries*................ 77,865 2,384,616
-----------
$ 9,245,366
-----------
TOTAL EQUITY INTERESTS - 97.7%
(identified cost, $163,095,156) $203,311,541
Reserve Funds -- 1.0%
Face Amount
American Express Corp., 6.753%, 1/2/97
(at amortized cost).............$2,100,000 $ 2,100,000
-----------
TOTAL INVESTMENTS -- 98.7%
(identified cost, $165,195,156) $205,411,541
OTHER ASSETS,
LESS LIABILITIES -- 1.3% 2,754,040
-----------
NET ASSETS -- 100% $208,165,581
============
* Non-income-producing security.
See notes to financial statements
<PAGE>
WRIGHT SELECTED BLUE CHIP EQUITIES FUND
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1996
- ------------------------------------------------------------------------------
ASSETS:
Investments --
Identified cost........................ $165,195,156
Unrealized appreciation................ 40,216,385
------------
Total Value (Note 1A)................ $205,411,541
Cash..................................... 81,750
Dividends and interest receivable........ 363,962
Receivable for Fund shares sold.......... 2,781,512
------------
Total Assets........................... $208,638,765
------------
LIABILITIES:
Payable for Fund shares reacquired....... $ 452,206
Trustee fees payable..................... 63
Accrued expenses and other liabilities... 20,915
------------
Total Liabilities...................... $ 473,184
------------
NET ASSETS.................................. $208,165,581
=============
NET ASSETS CONSIST OF:
Proceeds from sales of shares (including the market
value of securities received in exchange for Fund
shares and shares issued to shareholders in
payment of distributions declared), less cost
of shares reacquired................... $149,903,303
Accumulated undistributed net realized gain
on investments (computed on the basis of
identified cost)....................... 17,100,419
Unrealized appreciation of investments (computed
on the basis of identified cost)....... 40,216,385
Undistributed net investment income...... 945,474
------------
Net assets applicable to outstanding shares $208,165,581
=============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING............................ 11,743,811
=============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST................. $17.73
=============
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1996
- ------------------------------------------------------------------------------
INVESTMENT INCOME:
Income --
Dividends.............................. $ 4,761,492
Interest............................... 247,186
------------
Total Income......................... $ 5,008,678
------------
Expenses --
Investment Adviser fee (Note 2)........ $ 1,436,025
Administrator fee (Note 2)............. 277,044
Compensation of Trustees not affiliated with
the Investment Adviser or Administrator 1,776
Custodian fee (Note 1C)................ 66,020
Transfer and dividend disbursing agent fees 46,240
Shareholder communication expense...... 30,553
Distribution expenses (Note 3)......... 456,819
Audit services......................... 30,800
Legal services......................... 932
Printing............................... 2,232
Registration costs..................... 24,917
Interest expense....................... 927
Miscellaneous.......................... 2,864
------------
Total Expenses....................... $ 2,377,149
------------
Net Investment Income.............. $ 2,631,529
------------
REALIZED AND UNREALIZED GAIN ON
INVESTMENTS:
Net realized gain on investment transactions
(identified cost basis)................ $ 39,254,389
Change in unrealized appreciation
of investments......................... (2,677,293)
------------
Net realized and unrealized gain
on investments......................... $ 36,577,096
------------
Net increase in net assets
from operations.................... $ 39,208,625
=============
See notes to financial statements
<PAGE>
WRIGHT SELECTED BLUE CHIP EQUITIES FUND
===============================================================================
<TABLE>
<CAPTION>
Year Ended
December 31,
- -------------------------------------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS 1996 1995
- -------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From operations --
<S> <C> <C>
Net investment income...................................................... $ 2,631,529 $ 2,966,203
Net realized gain on investment transactions............................... 39,254,389 10,432,468
Change in unrealized appreciation of investments........................... (2,677,293) 40,854,983
------------ ------------
Increase in net assets from operations................................ $ 39,208,625 $ 54,253,654
------------ ------------
Undistributed net investment income included in
price of shares sold and redeemed (Note 1E).................................. $ (218,349) $ (87,633)
------------ ------------
Distributions to shareholders --
From net investment income................................................. $ (2,485,082) $ (2,612,968)
From net realized gain on investment transactions.......................... (21,491,146) (10,432,468)
In excess of net realized gain on investment transactions.................. -- (1,367,084)
------------ ------------
Total distributions to shareholders................................... $ (23,976,228) $ (14,412,520)
------------ ------------
Net decrease from Fund share transactions (exclusive of amounts
allocated to net investment income) (Note 4)................................ $ (24,436,411) $ (8,181,348)
------------ ------------
Net increase (decrease) in net assets................................. $ (9,422,363) $ 31,572,153
NET ASSETS:
At beginning of year........................................................... 217,587,944 186,015,791
------------ ------------
At end of year................................................................. $ 208,165,581 $ 217,587,944
============== ==============
UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED IN NET ASSETS.......................... $ 945,474 $ 1,333,910
============== ==============
</TABLE>
<PAGE>
See notes to financial statements
WRIGHT SELECTED BLUE CHIP EQUITIES FUND
===============================================================================
<TABLE>
<CAPTION>
Year Ended December 31,
- -------------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1996 1995 1994 1993 1992
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......... $ 16.830 $ 13.850 $ 14.920 $ 14.790 $ 17.180
-------- -------- -------- -------- --------
Income (Loss) from Investment Operations:
Net investment income.................. $ 0.204 $ 0.226 $ 0.233 $ 0.196 $ 0.222
Net realized and unrealized gain (loss)
on investments....................... 2.886 3.904 (0.763) 0.104 0.498
-------- -------- -------- -------- --------
Total income (loss)
from investment operations....... $ 3.090 $ 4.130 $ (0.530) $ 0.300 $ 0.720
-------- -------- -------- -------- --------
Less Distributions:
From net investment income............. $ (0.200) $ (0.200) $ (0.180) $ (0.170) $ (0.200)
From net realized gain on investments.. (1.990) (0.840) (0.360) -- (2.910)
In excess of net realized gain
on investments....................... -- (0.110) -- -- --
-------- -------- -------- -------- --------
Total distributions................ $ (2.190) $ (1.150) $ (0.540) $ (0.170) $ (3.110)
-------- -------- -------- -------- --------
Net asset value, end of year................ $ 17.730 $ 16.830 $ 13.850 $ 14.920 $ 14.790
========= ========= ========= ========= =========
Total Return (1)............................ 18.57% 30.34% (3.52%) 2.06% 4.71%
Ratios/Supplemental Data:
Net assets, end of year (000 omitted).. $ 208,166 $217,588 $186,016 $ 175,481 $152,997
Ratio of expenses to average net assets 1.04% 1.04% 1.03% 1.03% 1.02%
Ratio of net investment income to average
net assets........................... 1.15% 1.44% 1.57% 1.28% 1.34%
Portfolio turnover rate................ 43% 44% 72% 28% 77%
Average commission rate paid (2) ...... $ 0.0497 -- -- -- --
<FN>
(1) Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each period reported. Dividends and distributions, if any, are assumed to be
invested at the net asset value on the record date.
(2) Average commission rate paid is computed by dividing the total dollar amount
of commissions paid during the fiscal year by the total number of shares
purchased and sold during the fiscal year on which commissions were charged.
For fiscal years beginning on or after September 1, 1995, a Fund is required
to disclose its average commission rate per share for security trades on
which commissions are charged.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT JUNIOR BLUE CHIP EQUITIES FUND (WJBC)
PORTFOLIO OF INVESTMENTS
December 31, 1996
===============================================================================
Shares Value
- -------------------------------------------------------------------------------
Equity Interests -- 97.0%
AUTOMOTIVE -- 4.8%
Myers Industries.................... 14,500 $ 244,688
Simpson Industries.................. 24,000 261,374
TBC Corp............................ 22,600 169,500
-----------
$ 675,562
-----------
CONSTRUCTION -- 3.4%
Fleetwood Enterprises, Inc.......... 12,000 $ 330,000
Patrick Industries Inc.............. 10,000 151,250
-----------
$ 481,250
-----------
DIVERSIFIED -- 9.7%
Carlisle Corp....................... 6,000 $ 363,000
Crane Company....................... 12,750 369,750
Standex Int'l. Corp................. 7,000 216,125
Teleflex, Inc....................... 8,000 417,000
-----------
$ 1,365,875
-----------
DRUGS, COSMETICS & HEALTH CARE -- 2.6%
Alberto Culver Company Class A...... 9,000 $ 371,250
-----------
ELECTRICAL -- 3.2%
Scotsman Industries Inc............. 10,000 $ 236,250
Woodhead Industries Inc............. 15,500 213,125
-----------
$ 449,375
-----------
ELECTRONICS -- 1.0%
Technitrol.......................... 3,800 $ 145,825
-----------
FINANCIAL -- 22.1%
Allied Group........................ 9,750 $ 318,094
Associated Banc Corp................ 3,600 153,000
First Commercial Corp............... 7,774 288,610
First Hawaiian Inc.................. 11,000 385,000
McDonald & Co. Investments.......... 4,800 166,800
One Valley Bancorp.................. 10,000 371,250
Raymond James Financial Corp........ 10,000 301,250
Southern National Corp.............. 12,500 453,125
Star Banc Corp...................... 5,000 459,375
Westamerica Bancorp................. 3,500 202,124
-----------
$ 3,098,628
-----------
MACHINERY & EQUIPMENT -- 9.0%
Briggs & Stratton Corp.............. 8,000 $ 352,000
Donaldson Co. Inc................... 11,000 368,500
Kysor Industrial Corp............... 5,100 166,387
Lindsay Manufacturing Co............ 8,000 374,000
-----------
$ 1,260,887
-----------
METAL PRODUCERS -- 1.8%
Steel Technologies Inc.............. 19,500 $ 258,375
-----------
METAL PRODUCTS MANUFACTURERS -- 7.0%
CLARCOR Inc......................... 16,300 $ 360,637
Regal Beloit Corp................... 13,500 264,938
Synalloy Corp....................... 7,900 124,425
Varlen Corp......................... 11,500 236,469
-----------
$ 986,469
-----------
PRINTING & PUBLISHING -- 8.0%
American Business Products-GA....... 12,000 $ 301,500
Banta Corp.......................... 14,625 334,547
Central Newspapers Cl A............. 7,500 330,000
Merrill Corp........................ 7,000 161,000
-----------
$ 1,127,047
-----------
<PAGE>
RECREATION --2.1%
Sturm, Ruger & Company, Inc......... 15,000 $ 290,625
-----------
RETAILERS -- 4.5%
Hannaford Brothers Co............... 11,000 $ 374,000
Ruddick Corp........................ 18,600 260,400
-----------
$ 634,400
-----------
TRANSPORTATION -- 0.5%
M.S. Carriers Inc................... 4,200 $ 67,200
-----------
UTILITIES -- 2.1%
DQE................................. 10,000 $ 290,000
-----------
MISCELLANEOUS -- 15.0%
ABM Industries inc.................. 13,500 $ 249,750
Bush Industries Cl. A............... 12,000 231,000
Falcon Products Inc................. 16,000 228,000
Gallagher (A.J.) & Co............... 7,000 217,000
Lawson Prods. Inc................... 10,000 218,750
Marshall Industries*................ 15,000 459,375
Sterling Electronics................ 12,285 164,312
World Fuel Services Corp............ 15,000 333,750
-----------
$ 2,101,937
-----------
TOTAL EQUITY INTERESTS -- 97.0%
(identified cost, $10,664,807) $ 13,604,705
Reserve Funds -- 3.6%
Face Amount
American Express Corp., 6.753%, 1/2/97
(at amortized cost)...............$500,000 500,000
-----------
TOTAL INVESTMENTS -- 100.6%
(identified cost, $11,164,807) $ 14,104,705
OTHER ASSETS,
LESS LIABILITIES -- (0.6%) (76,005)
-----------
NET ASSETS -- 100.0% $ 14,028,700
============
* Non-income-producing security.
See notes to financial statements
<PAGE>
WRIGHT JUNIOR BLUE CHIP EQUITIES FUND
==========================================================================
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1996
- --------------------------------------------------------------------------
ASSETS:
Investments --
Identified cost........................ $ 11,164,807
Unrealized appreciation................ 2,939,898
------------
Total Value (Note 1A)................ $ 14,104,705
Cash..................................... 23,828
Dividends and interest receivable........ 27,371
Receivable for investments sold.......... 69,200
------------
Total Assets........................... $ 14,225,104
------------
LIABILITIES:
Payable for investments purchased........ $ 162,197
Investment Adviser fee payable (Note 2).. 4,258
Payable for Fund shares reacquired....... 23,926
Trustee fees payable..................... 63
Accrued expenses and other liabilities... 5,960
------------
Total Liabilities...................... $ 196,404
------------
NET ASSETS.................................. $ 14,028,700
=============
NET ASSETS CONSIST OF:
Proceeds from sales of shares (including the market
value of securities received in exchange for Fund
shares and shares issued to shareholders in
payment of distributions declared), less cost
of shares reacquired................... $ 11,323,459
Accumulated undistributed net realized gain
on investments (computed on the basis of
identified cost)....................... 150,601
Unrealized appreciation of investments (computed
on the basis of identified cost)....... 2,939,898
Distributions in excess of net investment
income................................. (385,258)
------------
Net assets applicable to outstanding shares $ 14,028,700
=============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING............................ 1,583,392
=============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST................. $8.86
=============
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1996
- -----------------------------------------------------------------------------
INVESTMENT INCOME:
Income --
Dividends............................... $ 342,934
Interest................................ 13,165
------------
Total Income.......................... $ 356,099
------------
Expenses --
Investment Adviser fee (Note 2)......... $ 104,339
Administrator fee (Note 2).............. 37,941
Compensation of Trustees not affiliated with
the Investment Adviser or Administrator 1,826
Custodian fee (Note 1C)................. 34,285
Transfer and dividend disbursing agent fees 3,660
Shareholder communication expense....... 2,528
Distribution expenses (Note 3).......... 37,941
Audit services.......................... 21,100
Legal services.......................... 932
Registration costs...................... 16,400
Printing................................ 1,850
Interest expense........................ 1,086
Miscellaneous........................... 3,696
------------
Total Expenses........................ $ 267,584
------------
Deduct --
Reduction of Investment Adviser
Fee (Note 2).......................... $ 1,580
Reduction of distribution expenses
by Principal Underwriter (Note 3)..... 37,941
Reduction of custodian fee (Note 1C).... 9,977
------------
Total................................. $ 49,498
------------
Net expenses.......................... $ 218,086
------------
Net investment income............... $ 138,013
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Net realized gain on investment transactions
(identified cost basis)................. $ 4,475,140
Change in unrealized appreciation
of investments.......................... (1,773,925)
------------
Net realized and unrealized gain
on investments.......................... $ 2,701,215
------------
Net increase in net assets
from operations..................... $ 2,839,228
=============
See notes to financial statements
<PAGE>
WRIGHT JUNIOR BLUE CHIP EQUITIES FUND
===============================================================================
<TABLE>
<CAPTION>
Year Ended
December 31,
- -------------------------------------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS 1996 1995
- -------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From operations --
<S> <C> <C>
Net investment income...................................................... $ 138,013 $ 281,420
Net realized gain on investment transactions............................... 4,475,140 2,687,430
Change in unrealized appreciation of investments........................... (1,773,925) 2,980,154
------------ ------------
Increase in net assets from operations................................ $ 2,839,228 $ 5,949,004
------------ ------------
Undistributed net investment income included in
price of shares sold and redeemed (Note 1E).................................. $ (118,531) $ (78,838)
------------ ------------
Distributions to shareholders --
From net investment income................................................... $ (156,925) $ (266,107)
From net realized gain on investment transactions............................ (4,391,022) (2,687,430)
In excess of net realized gain on investment transactions.................... -- (2,913,944)
------------ ------------
Total distributions to shareholders................................... $ (4,547,947) $ (5,867,481)
------------ ------------
Net decrease from Fund share transactions (exclusive of
amounts allocated to net investment income) (Note 4)......................... $ (10,137,508) $ (11,133,267)
------------ ------------
Net decrease in net assets............................................ $ (11,964,758) $ (11,130,582)
NET ASSETS:
At beginning of year........................................................... 25,993,458 37,124,040
------------ ------------
At end of year................................................................. $ 14,028,700 $ 25,993,458
============== ==============
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME
INCLUDED IN NET ASSETS......................................................... $ (385,258) $ 250,841
============== ==============
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT JUNIOR BLUE CHIP EQUITIES FUND
==============================================================================
<TABLE>
<CAPTION>
Year Ended December 31,
- ---------------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1996 1995 1994 1993 1992
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......... $ 10.850 $ 11.000 $ 11.950 $ 11.690 $ 14.720
-------- -------- -------- -------- --------
Income (Loss) from Investment Operations:
Net investment income(1)............... $ 0.067 $ 0.120 $ 0.101 $ 0.101 $ 0.045
Net realized and unrealized gain (loss)
on investments....................... 1.738 1.977 (0.431) 0.809 0.315
-------- -------- -------- -------- --------
Total income (loss)
from investment operations....... $ 1.805 $ 2.097 $ (0.330) $ 0.910 $ 0.360
-------- -------- -------- -------- --------
Less Distributions:
From net investment income............. $ (0.100) $ (0.100) $ (0.100) $ (0.060) $ (0.030)
From net realized gain on investments.. (3.695) (1.030) (0.520) (0.590) (3.360)
In excess of net realized gain
on investments....................... -- (1.117) -- -- --
-------- -------- -------- -------- --------
Total distributions................ $ (3.795) $ (2.247) $ (0.620) $ (0.650) $ (3.390)
-------- -------- -------- -------- --------
Net asset value, end of year................ $ 8.860 $ 10.850 $ 11.000 $ 11.950 $ 11.690
========= ========= ========= ========= =========
Total Return(3)............................. 17.53% 20.51% (2.75%) 7.93% 3.28%
Ratios/Supplemental Data:
Net assets, end of year (000 omitted).. $ 14,029 $ 25,993 $ 37,124 $ 68,226 $ 64,635
Ratio of expenses to average net assets(1) 1.20%(2) 1.17%(2) 1.11% 1.09% 1.07%
Ratio of net investment income to average
net assets(1)........................ 0.73% 0.89% 0.91% 0.86% 0.31%
Portfolio turnover rate................ 41% 40% 36% 38% 80%
Average commission rate paid (4) ..... $ 0.0511 -- -- -- --
<FN>
(1)For the years ended December 31, 1996 and 1995, the Investment Adviser and
the Principal Underwriter reduced their fees. Had such actions not been
undertaken, net investment income per share and the ratios would have been as
follows:
1996 1995
--------- ---------
Net investment income per share........ $ 0.048 $ 0.105
========= =========
Ratios (As a percentage of average net assets):
Expenses........................... 1.41% 1.28%
========= =========
Net investment income.............. 0.52% 0.78%
========= =========
(2) Custodian fees were reduced by credits resulting from cash balances the
Trust maintained with the custodian (Note 1C). The computation of net
expenses to average daily net assets reported above for the years ended
December 31, 1996 and 1995 is computed without consideration of such
credits, in accordance with reporting regulations in effect beginning in
1995. If these credits were considered, the ratio of net expenses to average
daily net assets would have been reduced to 1.15% and 1.14% for the years
ended December 31, 1996 and 1995, respectively.
(3) Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each period reported. Dividends and distributions, if any, are assumed to be
invested at the net asset value on the record date.
(4) Average commission rate paid is computed by dividing the total dollar amount
of commissions paid during the fiscal year by the total number of shares
purchased and sold during the fiscal year on which commissions were charged.
For fiscal years beginning on or after September 1, 1995, a Fund is required
to disclose its average commission rate per share for security trades on
which commissions are charged.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT QUALITY CORE EQUITIES FUND (WQC)
PORTFOLIO OF INVESTMENTS
December 31, 1996
===============================================================================
Shares Value
Equity Interests -- 98.7%
APPAREL -- 2.0%
Liz Claiborne....................... 4,000 $ 154,500
Russell Corp........................ 6,900 205,275
VF Corp............................. 2,500 168,750
-----------
$ 528,525
-----------
AUTOMOTIVE -- 2.0%
Eaton Corp.......................... 2,400 $ 167,400
Echlin Inc.......................... 5,500 173,938
Johnson Controls.................... 2,000 165,750
-----------
$ 507,088
-----------
BEVERAGES -- 0.6%
Anheuser Busch Co................... 4,000 $ 160,000
-----------
CHEMICALS -- 8.4%
Air Products & Chemicals............ 3,000 $ 207,375
Bandag Inc.......................... 2,600 123,175
Clorox Corp......................... 1,600 160,600
Fuller (H.B.) Co.................... 3,700 173,900
Goodyear Tire & Rubber Co........... 3,400 174,675
Great Lakes Chemical Corp........... 3,100 144,925
Lubrizol Corp....................... 5,500 170,500
Morton International Inc............ 3,900 158,925
Nalco Chemical...................... 4,800 173,400
PPG Industries...................... 2,800 157,150
Rohm & Haas Co...................... 2,000 163,250
Sherwin Williams Co................. 3,000 168,000
Sigma Aldrich Corp.................. 3,300 206,043
-----------
$ 2,181,918
-----------
CONSTRUCTION -- 3.8%
Caterpillar Tractor Inc............. 2,200 $ 165,550
Fleetwood Enterprises, Inc.......... 5,500 151,250
Medusa Corporation.................. 5,000 171,875
Oakwood Homes Corp.................. 7,000 160,125
Toll Brothers....................... 8,900 173,550
Vulcan Materials Co................. 2,700 164,362
-----------
$ 986,712
-----------
DIVERSIFIED -- 5.1%
Allied Signal Inc................... 1,700 $ 113,900
Carlisle Corp....................... 3,000 181,500
Crane Company....................... 5,250 152,250
Danaher Corporation................. 3,800 177,175
Lancaster Colony Corp............... 3,900 179,400
National Service Industries......... 5,100 190,613
Teleflex Inc........................ 3,200 166,800
Tyco Lab............................ 3,000 158,624
-----------
$ 1,320,262
-----------
DRUGS, COSMETICS & HEALTH CARE -- 1.8%
Alberto Culver Co. Class A.......... 4,000 $ 165,000
Bristol-Myers Squibb Co............. 1,500 163,125
Dentsply International Inc.......... 2,800 133,000
-----------
$ 461,125
-----------
ELECTRICAL -- 1.9%
Emerson Electric Co................. 1,700 $ 164,475
Juno Lighting Co.................... 9,800 156,800
Thomas & Betts Corp................. 3,900 173,062
-----------
$ 494,337
-----------
ELECTRONICS -- 8.5%
Applied Materials Inc............... 4,500 $ 161,719
Atmel Corp.......................... 4,800 159,000
Compaq Computer*.................... 2,400 178,200
Dallas Semiconductor Corp........... 9,000 207,000
EMC Corp./Mass...................... 5,800 192,125
Harman Int'l. Industries............ 3,000 166,875
Lam Research Corp................... 5,300 149,063
National Computer System Inc........ 6,500 165,750
Octel Communication................. 10,000 175,000
Raytheon Co......................... 3,900 187,688
Seagate Technology, Inc............. 4,200 165,900
Sun Microsystems, Inc............... 5,500 141,281
Varian Associates Inc............... 2,600 132,274
-----------
$ 2,181,875
-----------
<PAGE>
FINANCIAL -- 16.8%
AFLAC, Inc.......................... 4,000 $ 171,000
Allied Group........................ 5,800 189,225
American Express Co................. 2,500 141,250
American International Group........ 1,500 162,375
Aon Corp............................ 2,100 130,463
Bancorp Hawaii...................... 3,900 163,800
Commerce Bancshares, Inc............ 4,000 185,000
Compass Bancshares.................. 4,400 174,900
Edwards (A.G.), Inc................. 5,400 181,575
First Hawaiian Inc.................. 5,000 175,000
First Security CP................... 6,000 202,500
First Virginia Banks Inc............ 3,500 167,563
Firstar Corporation................. 3,000 157,500
Franklin Resources Inc.............. 1,700 116,238
Key Corp. (New)..................... 4,000 202,000
MBIA, Inc........................... 1,500 151,875
Mark Twain Bancshares Inc........... 4,400 214,500
Mercantile Bankshares............... 6,000 192,000
Old Kent Financial Corp............. 4,500 214,875
Quick and Reilly Group.............. 6,500 194,188
Southern National Corp.............. 4,500 163,125
Southtrust Corp..................... 4,900 170,888
Star Banc Corp...................... 1,900 174,560
Wilmington Trust Corp............... 4,000 158,000
Zions Bancorporation................ 1,700 176,800
-----------
$ 4,331,200
-----------
FOOD -- 2.1%
CPC International Inc............... 2,500 $ 193,750
Sara Lee Corp....................... 4,500 167,625
Universal Foods Corp................ 5,200 183,300
-----------
$ 544,675
-----------
MACHINERY & EQUIPMENT -- 3.5%
Briggs & Stratton Corp.............. 4,000 $ 176,000
Dover Corp.......................... 4,100 206,025
Ingersoll Rand Co................... 3,500 155,750
Pentair Inc......................... 6,300 203,175
Pitney-Bowes Inc.................... 2,800 152,600
-----------
$ 893,550
-----------
METAL PRODUCERS -- 0.8%
Carpenter Technology................ 5,500 $ 201,438
-----------
METAL PRODUCTS MANUFACTURERS -- 4.1%
Harsco Corp......................... 2,400 $ 164,400
Illinois Tool Works Inc............. 2,600 207,675
Snap-On Inc......................... 4,700 167,438
Trimas Corp. Common Stock........... 7,000 167,125
Trinity Industries.................. 4,700 176,250
Watts Industries Inc. Cl. A......... 7,100 169,512
-----------
$ 1,052,400
-----------
OIL, GAS, COAL & RELATED SERVICES -- 0.7%
Exxon Corp.......................... 1,800 $ 176,400
-----------
PAPER -- 1.6%
Bemis Co............................ 6,000 $ 221,250
Sonoco Products Co.................. 7,155 185,136
-----------
$ 406,386
-----------
PRINTING & PUBLISHING -- 4.3%
American Greetings.................. 5,800 $ 164,575
Banta Corp.......................... 6,750 154,406
Central Newspapers Cl. A............ 3,800 167,200
Gannett Co. Inc..................... 2,200 164,725
Lee Enterprises, Inc................ 7,500 174,375
Standard Register................... 5,500 178,750
Tribune Co.......................... 1,400 110,425
-----------
$ 1,114,456
-----------
RECREATION -- 6.2%
Callaway Golf Company............... 6,000 $ 172,500
Carnival Corp....................... 5,500 181,500
Cracker Barrel Old Country Store.... 6,900 175,088
Hasbro Inc.......................... 3,900 151,612
Kingworld Productions Inc........... 5,200 191,750
Luby's Cafeteria, Inc............... 8,800 174,900
Ryan's Family Steak Houses*......... 25,000 171,875
Sturm, Ruger & Company, Inc......... 10,000 193,750
Wendy's International, Inc.......... 9,000 184,500
-----------
$ 1,597,475
-----------
<PAGE>
RETAILERS -- 8.5%
Arbor Drugs Inc..................... 10,000 $ 173,750
Dillard Dept. Stores................ 6,100 188,338
Family Dollar Stores................ 8,500 173,188
Gap Stores.......................... 5,300 159,662
Hannaford Brothers Co............... 5,000 170,000
Land's End Inc...................... 6,400 169,600
The Limited Inc..................... 11,100 203,962
May Department Stores............... 4,000 187,000
Penney (J.C.) Company, Inc.......... 3,700 180,375
Price/Costco Inc*................... 7,000 175,875
Rite Aid Corp....................... 4,000 159,000
Toys "R" Us, Inc. Holding Co........ 3,400 102,000
Walgreen Co......................... 4,300 172,000
-----------
$ 2,214,750
-----------
TRANSPORTATION -- 2.4%
ASA Holdings, Inc................... 4,900 $ 107,188
Comair Holdings, Inc................ 7,000 168,000
Illinois Central Corp............... 5,100 163,200
Werner Enterprises Inc.............. 10,000 181,250
-----------
$ 619,638
-----------
UTILITIES -- 7.7%
AmeriTech Corp...................... 3,600 $ 218,250
Bell Atlantic Corp.................. 2,700 174,825
Century Telephone Enterprises....... 6,500 200,688
Citizens Utilities Cl. A............ 14,224 154,686
DQE Inc............................. 6,150 178,350
MCI Communications Corp............. 5,000 163,438
NIPSCO Industries, Inc.............. 5,300 210,013
Questar Corp........................ 4,300 158,025
Sprint Corp......................... 4,500 179,438
TECO Energy, Inc.................... 7,000 168,874
Wisconsin Energy Corp............... 6,450 173,343
-----------
$ 1,979,930
-----------
MISCELLANEOUS -- 5.9%
Arrow Electronics, Inc.............. 3,200 $ 171,200
Avery-Dennison Corp................. 3,600 127,350
Genuine Parts Co.................... 4,350 193,575
Interpublic Group Cos. Inc.......... 4,300 204,250
Kelly Services...................... 6,400 172,800
Leggett & Platt Inc................. 5,700 197,363
Marshall Industries*................ 5,600 171,500
Paxar Corp.......................... 6,800 117,300
Universal Health Services - Cl. B... 5,700 163,162
-----------
$ 1,518,500
-----------
TOTAL EQUITY INTERESTS -- 98.7%
(identified cost, $21,328,452) $ 25,472,640
Reserve Funds -- 1.1%
Face Amount
American Express Corp., 6.753%, 1/2/97
(at amortized cost)...............$300,000 300,000
-----------
TOTAL INVESTMENTS -- 99.8%
(identified cost, $21,628,452) $ 25,772,640
OTHER ASSETS,
LESS LIABILITIES -- 0.2% 42,475
-----------
NET ASSETS -- 100% $ 25,815,115
============
* Non-income-producing security.
See notes to financial statements
<PAGE>
WRIGHT QUALITY CORE EQUITIES FUND
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1996
- --------------------------------------------------------------------------
ASSETS:
Investments --
Identified cost........................ $ 21,628,452
Unrealized appreciation................ 4,144,188
------------
Total Value (Note 1A)................ $ 25,772,640
Cash..................................... 32,278
Dividends and interest receivable........ 38,849
Receivable for Fund shares sold.......... 2,500
------------
Total Assets........................... $ 25,846,267
------------
LIABILITIES:
Payable for Fund shares reacquired....... $ 17,011
Trustee fees payable..................... 63
Distribution fee payable (Note 3)........ 6,183
Accrued expenses and other liabilities... 7,895
------------
Total Liabilities...................... $ 31,152
------------
NET ASSETS.................................. $ 25,815,115
=============
NET ASSETS CONSIST OF:
Proceeds from sales of shares (including
the market value of securities received
in exchange for Fund shares and shares issued
to shareholders in payment of distributions
declared), less cost of shares reacquired. $ 17,965,459
Accumulated undistributed net realized gain
on investments (computed on the basis of
identified cost)....................... 3,911,333
Unrealized appreciation of investments
(computed on the basis of identified cost) 4,144,188
Distributions in excess of net investment
income................................. (205,865)
------------
Net assets applicable to
outstanding shares................... $ 25,815,115
=============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING............................ 2,073,091
=============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST................. $12.45
=============
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1996
- -----------------------------------------------------------------------------
INVESTMENT INCOME:
Income --
Dividends.............................. $ 727,296
Interest............................... 32,344
------------
Total Income......................... $ 759,640
------------
Expenses --
Investment Adviser fee (Note 2)........ $ 175,798
Administrator fee (Note 2)............. 78,132
Compensation of Trustees not affiliated with
the Investment Adviser or Administrator 2,369
Custodian fee (Note 1C)................ 38,493
Transfer and dividend disbursing agent fees 7,019
Shareholder communication expense...... 5,838
Distribution expenses (Note 3)......... 78,136
Audit services......................... 28,921
Legal services......................... 932
Registration costs..................... 15,969
Printing............................... 2,078
Miscellaneous.......................... 755
------------
Total Expenses....................... $ 434,440
------------
Deduct --
Reduction of distribution expenses
by Principal Underwriter (Note 3)..... $ 14,839
Reduction of custodian fee (Note 1C).... 9,399
------------
Total................................. $ 24,238
------------
Net expenses.......................... $ 410,202
------------
Net investment income.............. $ 349,438
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Net realized gain on investment transactions
(identified cost basis)................ $ 11,025,665
Change in unrealized appreciation
of investments......................... (5,101,936)
------------
Net realized and unrealized gain
on investments......................... $ 5,923,729
------------
Net increase in net assets
from operations.................... $ 6,273,167
=============
See notes to financial statements
<PAGE>
WRIGHT QUALITY CORE EQUITIES FUND
===============================================================================
<TABLE>
<CAPTION>
Year Ended
December 31,
- ------------------------------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS 1996 1995
- ------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From operations --
<S> <C> <C>
Net investment income...................................................... $ 349,438 $ 623,178
Net realized gain on investment transactions............................... 11,025,665 7,097,632
Change in unrealized appreciation of investments........................... (5,101,936) 5,562,948
------------ ------------
Increase in net assets from operations................................ $ 6,273,167 $ 13,283,758
------------ ------------
Undistributed net investment income included in
price of shares sold and redeemed (Note 1E).................................. $ (43,460) $ (61,558)
------------ ------------
Distributions to shareholders --
From net investment income................................................. $ (342,817) $ (614,587)
From net realized gain on investment transactions.......................... (4,865,664) (6,258,626)
------------ ------------
Total distributions to shareholders................................... $ (5,208,481) $ (6,873,213)
------------ ------------
Net decrease from Fund share transactions (exclusive of
amounts allocated to net investment income) (Note 4)......................... $ (24,340,385) $ (8,299,369)
------------ ------------
Net decrease in net assets............................................ $ (23,319,159) $ (1,950,382)
NET ASSETS:
At beginning of year........................................................... 49,134,274 51,084,656
------------ ------------
At end of year................................................................. $ 25,815,115 $ 49,134,274
============== ==============
DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME
INCLUDED IN NET ASSETS........................................................ $ (205,865) $ (169,026)
============== ==============
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT QUALITY CORE EQUITIES FUND
===============================================================================
<TABLE>
<CAPTION>
Year Ended December 31,
- --------------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1996 1995 1994 1993 1992
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......... $ 12.650 $ 11.390 $ 12.720 $ 13.380 $ 14.730
-------- -------- -------- -------- --------
Income (Loss) from Investment Operations:
Net investment income(1)............... $ 0.064 $ 0.153 $ 0.180 $ 0.176 $ 0.179
Net realized and unrealized gain (loss)
on investments....................... 2.131 3.107 (0.295) (0.046) 0.951
-------- -------- -------- -------- --------
Total income (loss)
from investment operations....... $ 2.195 $ 3.260 $ (0.115) $ 0.130 $ 1.130
-------- -------- -------- -------- --------
Less Distributions:
From net investment income............. $ (0.120) $ (0.160) $ (0.160) $ (0.160) $ (0.160)
From net realized gain on investments.. (2.275) (1.840) (1.055) (0.625) (2.320)
In excess of net realized gains........ -- -- -- (0.005) --
-------- -------- -------- -------- --------
Total distributions................ $ (2.395) $ (2.000) $ (1.215) $ (0.790) $ (2.480)
-------- -------- -------- -------- --------
Net asset value, end of year................ $ 12.450 $ 12.650 $ 11.390 $ 12.720 $ 13.380
========= ========= ========= ========= =========
Total Return(3)............................. 17.63% 28.98% (0.70%) 1.00% 8.02%
Ratios/Supplemental Data:
Net assets, end of year (000 omitted).. $ 25,815 $ 49,134 $ 51,085 $ 88,349 $ 81,674
Ratio of expenses to average net assets(1) 1.08%(2) 1.07%(2) 0.99% 0.97% 1.01%
Ratio of net investment income to average
net assets(1)...................... 0.90% 1.19% 1.46% 1.37% 1.20%
Portfolio turnover rate................ 45% 83% 55% 53% 70%
Average commission rate paid (4)....... $ 0.0564 -- -- -- --
<FN>
(1)For the years ended December 31, 1996 and 1995, the Principal Underwriter
reduced its fee. Had such action not been undertaken, net investment income
per share and the ratios would have been as follows:
1996 1995
------ -----
Net investment income per share........ $ 0.061 $ 0.150
========= =========
Ratios (As a percentage of average net assets):
Expenses........................... 1.12% 1.09%
========= =========
Net investment income.............. 0.86% 1.17%
========= =========
(2) Custodian fees were reduced by credits resulting from cash balances the
Trust maintained with the custodian (Note 1C). The computation of net
expenses to average daily net assets reported above for the years ended
December 31, 1996 and 1995 is computed without consideration of such
credits, in accordance with reporting regulations in effect beginning in
1995. If these credits were considered, the ratio of net expenses to average
daily net assets would have been reduced to 1.05% for the years ended
December 31, 1996 and 1995.
(3) Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each period reported. Dividends and distributions, if any, are assumed to be
invested at the net asset value on the record date.
(4) Average commission rate paid is computed by dividing the total dollar amount
of commissions paid during the fiscal year by the total number of shares
purchased and sold during the fiscal year on which commissions were charged.
For fiscal years beginning on or after September 1, 1995, a Fund is required
to disclose its average commission rate per share for security trades on
which commissions are charged.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC)
PORTFOLIO OF INVESTMENTS
December 31, 1996
===============================================================================
Shares Value
Equity Interests -- 99.4%
AUSTRALIA -- 5.7%
Australian Gas & Light Co........... 375,000 $ 2,133,904
Broken Hill Proprietary Co. ........ 136,293 1,941,074
Coles Myer Ltd ADR................. 62,551 2,064,183
Email Ltd........................... 618,928 2,002,005
F.H. Faulding (U.K.)................ 365,684 2,473,239
Futuris Corporation Limited.........1,838,488 2,513,158
Lend Lease Corp. Ltd................ 118,894 2,305,581
-----------
$ 15,433,144
-----------
BELGIUM -- 1.9%
Colruyt SA.......................... 5,500 $ 2,522,498
Delhaize Freres & Cie Le Lion SA.... 41,200 2,448,013
-----------
$ 4,970,511
-----------
CANADA -- 5.6%
Bombardier Inc. Class B............. 132,000 $ 2,436,496
British Columbia Telecom............ 95,300 2,061,530
Linamar Corporation................. 80,200 2,574,532
Loblaw Companies Ltd................ 218,000 2,250,523
Magna Int'l. Inc. Cl. A............. 39,000 2,169,582
Newbridge Network Corp*............. 65,000 1,836,250
Power Financial Corp................ 15,000 534,051
Thomson Corporation................. 48,000 1,059,346
-----------
$ 14,922,310
-----------
CHILE -- 0.6%
Embotelladora Andina SA............. 54,000 $ 1,647,000
-----------
DENMARK -- 4.7%
Berendsen Sophus A/S Class B........ 16,093 $ 2,071,685
Carlsburg A/S Pfd Class B........... 34,727 2,347,296
Coloplast B A/S..................... 20,000 2,275,738
Icopal Group........................ 7,550 1,921,415
Novo-Nordisk AS..................... 13,000 2,450,664
Radiometer A/S...................... 26,450 1,572,211
-----------
$ 12,639,009
-----------
FINLAND -- 1.0%
Orion A/S-B......................... 67,300 $ 2,590,826
-----------
FRANCE -- 9.6%
BIC................................. 6,700 $ 1,005,323
Carrefour Supermarche............... 3,700 2,409,103
Castorama Dubois Inv................ 10,541 1,815,451
Comptoirs Modernes SA............... 4,504 2,432,247
L'Air Liquide SA.................... 12,043 1,881,356
LeGrand SA.......................... 10,500 1,790,164
L'Oreal SA.......................... 6,545 2,466,524
LVMH Moet-Hennessy SA ADR.......... 38,620 2,162,720
Pernod Ricard SA.................... 33,280 1,842,114
Sagem SA............................ 3,500 2,112,825
SEB Group........................... 12,000 2,353,713
Synthelabo.......................... 22,900 2,477,705
TV Francaise........................ 10,000 956,605
-----------
$ 25,705,850
-----------
GERMANY -- 5.6%
Altana Ind-Aktien DM50.............. 2,500 $ 1,946,701
Bayerische Motoren Werke AG......... 3,109 2,168,318
Beiersdorf AG....................... 45,200 2,235,762
Douglas Holdings AG................. 50,000 1,966,201
Dyckerhoff AG....................... 8,808 2,433,149
Gehe AG............................. 32,000 2,048,749
Heidelberger Zement AG ............. 29,300 2,371,043
-----------
$ 15,169,923
-----------
HONG KONG -- 6.9%
China Light & Power Co. Ltd. ADR.... 351,276 $ 1,562,195
Hang Lung Dev. Co. Ltd. ADR......... 206,400 2,268,130
Hang Seng Bank Ltd. ADR............. 192,195 2,335,650
Hong Kong Aircraft Engineering Co... 741,000 2,280,147
Hong Kong & China Gas Co. ADR......1,126,959 2,178,073
Hong Kong Electric Holdings Ltd. ADR 530,520 1,762,653
Johnson Electric Holdings Ltd....... 897,500 2,483,225
Kowloon Motor Bus Co. (1933) Ltd.... 979,200 1,671,141
Swire Pacific Ltd. ADR.............. 214,400 2,044,197
-----------
$ 18,585,411
-----------
<PAGE>
IRELAND -- 1.7%
Fyffes PLC..........................1,082,000 $ 1,984,945
Greencore Group PLC................. 394,000 2,566,949
-----------
$ 4,551,894
-----------
ITALY -- 0.6%
Sirti SPA........................... 281,000 $ 1,724,306
-----------
JAPAN -- 8.5%
Chudenko Corp....................... 53,300 $ 1,536,593
Daiichi Pharmaceutical Co., Ltd..... 137,000 2,199,473
Ito-Yokado Co., Ltd. ADR............ 8,500 1,472,625
Kurita Water Industries Ltd......... 99,600 2,011,687
Kyodo Printing Co. Ltd.............. 198,000 1,589,401
National House Industrial Co., Ltd.. 110,000 1,462,173
Ono Pharmaceutical Co. Ltd.......... 56,000 1,667,602
Santen Pharmaceutical Co., Ltd...... 82,600 1,711,104
Seven Eleven Japan Co., Ltd......... 34,580 2,023,671
Taisho Pharmaceutical Co., Ltd...... 85,000 2,002,935
Yamanouchi Pharmaceutical Co., Ltd.. 92,000 1,889,949
York-Benimaru Co., Ltd.............. 60,000 1,672,781
Yurtec Corp......................... 123,447 1,672,882
-----------
$ 22,912,876
-----------
MALAYSIA -- 4.6%
Amsteel Corp. Berhad...............2,298,000 $ 1,710,986
Genting Berhad...................... 230,000 1,584,951
Guinness Anchor Berhad.............. 782,000 1,920,158
Hong Leong Indus Berhad............. 580,800 1,978,170
Perlis Plantations Berhad........... 615,000 1,911,980
Sime Darby Berhad................... 599,200 2,361,204
Systems Telekom Malaysia............ 110,000 980,198
-----------
$ 12,447,647
-----------
MEXICO -- 2.0%
Cifra S.A. ADR*...................1,227,000 $ 1,499,394
Kimberly Clark De Mexico ADR........ 49,900 1,937,163
Grupo Industrial Maseca-B........... 90,000 114,043
Telefonos de Mexico ADR............ 54,400 1,795,200
-----------
$ 5,345,800
-----------
NETHERLANDS --8.7%
CSM N.V............................ 37,318 $ 2,074,303
Elsevier Dutch Certificates......... 120,900 2,044,051
Getronics N.V....................... 96,084 2,609,194
Hagemeyer N.V....................... 27,553 2,203,155
Heineken N.V........................ 9,975 1,766,171
IHC Caland N.V...................... 35,000 2,000,174
Koninklijke Ahold N.V............... 35,167 2,199,083
Nutricia............................ 16,258 2,471,035
Polygram............................ 32,700 1,666,145
Unilever N.V........................ 12,900 2,282,578
Verenigde Neder. Uitgeversbedrijven. 101,000 2,111,111
-----------
$ 23,427,000
-----------
SINGAPORE -- 1.4%
Asia Pacific Breweries Ltd.......... 317,000 $ 1,699,428
Singapore Press Holdings Ltd........ 106,200 2,095,154
-----------
$ 3,794,582
-----------
SOUTH AFRICA -- 1.3%
South African Breweries Ltd......... 66,803 $ 1,692,390
Tiger Oats Ltd...................... 127,000 1,764,832
-----------
$ 3,457,222
-----------
SPAIN -- 3.4%
Banco Popular Espanol............... 11,600 $ 2,278,452
Empresa Nac de Electicidad SA....... 30,600 2,177,886
Gas Natural SDG SA.................. 10,500 2,442,519
Repsol S.A.......................... 55,740 2,138,149
-----------
$ 9,037,006
-----------
SWEDEN -- 4.0%
AGA AB B Free....................... 121,500 $ 1,816,117
Astra AB Class B.................... 43,500 2,097,261
Atlas Copco AB "A" Free............. 101,000 2,442,151
Gullspangs Kraft - "B" Free......... 113,000 2,020,252
Hennes & Mauritz AB Class B........ 16,500 2,282,566
-----------
$ 10,658,347
-----------
<PAGE>
SWITZERLAND -- 3.9%
Nestle SA ADR....................... 34,600 $ 1,851,467
Novartis AG-Reg..................... 1,900 2,176,093
Roche Holding AG - Genussch......... 270 2,100,897
SMH-Sch. Ges. Fuer AG............... 14,750 2,104,781
Societe Generale de Surv. Hold. SA.. 915 2,249,047
-----------
$ 10,482,285
-----------
UNITED KINGDOM -- 17.7%
Allied Colloids Group PLC........... 920,000 $ 1,900,695
Allied Colloids Group Rights........ 262,857 36,053
Bowthorpe Holdings PLC.............. 130,000 1,007,440
Cable & Wireless PLC ADR........... 84,300 2,075,888
Christian Salvesen PLC.............. 462,200 2,274,308
Grand Metropolitan PLC ADR......... 55,900 1,767,838
Halma PLC........................... 599,333 1,941,157
Johnson Matthey Public Ltd.......... 225,200 2,123,580
LaPorte PLC......................... 167,070 1,959,260
Marks & Spencer PLC................. 240,700 2,026,260
Morrison (Wm.) Supermarket.......... 686,000 1,934,762
Pearson PLC......................... 163,746 2,104,165
Polypipe PLC........................ 625,000 2,486,025
Powerscreen Int'l................... 245,100 2,374,265
Provident Financial PLC............. 278,767 2,413,627
Reckitt & Colman PLC................ 152,134 1,885,828
Scapa Group PLC..................... 481,873 2,028,250
Securicor Group -A-*................ 411,112 1,977,109
Siebe PLC........................... 135,972 2,527,064
Smith & Nephew PLC.................. 633,693 1,971,937
Smiths Industries PLC............... 180,100 2,476,426
Tesco PLC........................... 417,060 2,538,425
Weir Group PLC...................... 407,700 1,817,403
Wolseley PLC........................ 252,215 2,006,441
-----------
$ 47,654,206
-----------
TOTAL EQUITY INTERESTS -- 99.4%
(identified cost, $201,903,626) $ 267,157,155
OTHER ASSETS,
LESS LIABILITIES -- 0.6% 1,575,184
-----------
NET ASSETS -- 100% $268,732,339
============
* Non-income-producing security.
ADR: American Depository Receipts
<PAGE>
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND
===============================================================================
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1996
- -------------------------------------------------------------------------------
ASSETS:
Investments --
Identified cost........................ $201,903,626
Unrealized appreciation................ 65,253,529
------------
Total value (Note 1A)................ $267,157,155
Foreign cash............................. 1,209,820
Receivable for investments sold.......... 865,824
Dividends and interest receivable........ 589,055
Receivable for refundable foreign taxes
withheld............................... 357,543
Receivable for fund shares sold.......... 112,350
------------
Total Assets........................... $270,291,747
------------
LIABILITIES:
Payable for investments purchased........ $ 1,191,594
Payable for Fund shares reacquired....... 240,584
Trustees fees payable.................... 63
Bank overdraft........................... 56,373
Payable for open forward foreign currency
exchange contracts..................... 1,219
Accrued expenses and other liabilities... 69,575
------------
Total Liabilities...................... $ 1,559,408
------------
NET ASSETS.................................. $268,732,339
=============
NET ASSETS CONSIST OF:
Proceeds from sales of shares (including the market
value of securities received in exchange for Fund
shares and shares issued to shareholders in
payment of distributions declared), less cost of
shares reacquired........................ $201,671,898
Accumulated undistributed net realized gain
on investments and foreign currency
(computed on the basis of identified cost) 873,983
Unrealized appreciation of investments and trans-
lation of assets and liabilities in foreign currency
(computed on the basis of identified cost) 65,262,058
Undistributed net investment income......... 924,400
------------
Net assets applicable to outstanding shares $268,732,339
=============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING.............................. 16,102,918
=============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST................... $16.69
=============
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1996
- ----------------------------------------------------------------------------
INVESTMENT INCOME:
Income --
Dividends.............................. $ 5,466,347
Interest............................... 299,884
Less: Foreign taxes................... (709,801)
------------
Total Income......................... $ 5,056,430
------------
Expenses --
Investment Adviser fee (Note 2)........ $ 1,847,061
Administrator fee (Note 2)............. 282,614
Compensation of Trustees not affiliated with
the Investment Adviser or Administrator 1,595
Custodian fee (Note 1C)................ 338,478
Transfer and dividend disbursing agent fees 48,214
Shareholder communication expense...... 29,542
Distribution expenses (Note 3)......... 477,861
Audit services......................... 23,625
Legal services......................... 1,609
Registration costs..................... 20,398
Printing............................... 5,042
Interest expense....................... 12,632
Miscellaneous.......................... 11,023
------------
Total Expenses....................... $ 3,099,694
------------
Net Investment Income.............. $ 1,956,736
------------
REALIZED AND UNREALIZED GAIN ON
INVESTMENTS:
Net realized gain on investment and foreign
currency transactions (identified
cost basis)........................... $ 19,574,426
Change in unrealized appreciation
of investments and translation of assets
and liabilities in foreign currencies.. 24,303,355
------------
Net realized and unrealized gain on
investments and foreign currency... $ 43,877,781
------------
Net increase in net assets
from operations.................... $ 45,834,517
=============
See notes to financial statements
<PAGE>
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND
===============================================================================
<TABLE>
<CAPTION>
Year Ended
December 31,
- -------------------------------------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS 1996 1995
- -------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From operations --
<S> <C> <C>
Net investment income........................................................ $ 1,956,736 $ 2,167,787
Net realized gain (loss) on investment and foreign currency transactions..... 19,574,426 (650,735)
Change in unrealized appreciation of investments and translation
of assets and liabilities in foreign currencies............................ 24,303,355 25,147,505
------------ ------------
Increase in net assets from operations................................ $ 45,834,517 $ 26,664,557
------------ ------------
Undistributed net investment income included in
price of shares sold and redeemed (Note 1E).................................. $ 23,205 $ 182,554
------------ ------------
Distributions to shareholders --
From net investment income................................................... $ (1,527,735) $ (1,602,294)
From net realized gain....................................................... (15,430,128) --
------------ ------------
Total distributions................................................... $ (16,957,863) $ (1,602,294)
------------ ------------
Net increase from Fund share transactions
(exclusive of amounts allocated to net investment income) (Note 4)........... $ 2,656,534 $ 11,699,493
------------ ------------
Net increase in net assets............................................ $ 31,556,393 $ 36,944,310
NET ASSETS:
At beginning of year........................................................... 237,175,946 200,231,636
------------ ------------
At end of year................................................................. $ 268,732,339 $ 237,175,946
============== ==============
UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED IN NET ASSETS.......................... $ 924,400 $ 1,357,941
============== ==============
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND
===============================================================================
<TABLE>
<CAPTION>
Year Ended December 31,
- ----------------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1996 1995 1994 1993 1992
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......... $ 14.770 $ 13.090 $ 13.410 $ 10.520 $ 11.040
--------- --------- --------- --------- ---------
Income (loss) from Investment Operations:
Net investment income.................. $ 0.128 $ 0.142 $ 0.127 $ 0.107 $ 0.094
Net realized and unrealized gain (loss)
on investments..................... 2.902 1.638 (0.347) 2.853 (0.524)
--------- --------- --------- --------- ---------
Total income (loss)
from investment operations......... $ 3.030 $ 1.780 $ (0.220) $ 2.960 $ (0.430)
--------- --------- --------- --------- ---------
Less Distributions:
From net investment income............. $ (0.100) $ (0.100) $ (0.100) $ (0.070) $ (0.090)
From net realized gains................ (1.010) -- -- -- --
--------- --------- --------- --------- ---------
Total distributions................ $ (1.110) $ (0.100) $ (0.100) $ (0.070) $ (0.090)
--------- --------- --------- --------- ---------
Net asset value, end of year................ $ 16.690 $ 14.770 $ 13.090 $ 13.410 $ 10.520
========== ========== ========== ========== ==========
Total Return(1)............................. 20.73% 13.61% (1.64%) 28.22% (3.94%)
Ratios/Supplemental Data
Net assets, end of year (000 omitted).. $268,732 $237,176 $200,232 $100,071 $ 74,409
Ratio of expenses to average daily net
assets............................. 1.30% 1.29% 1.31% 1.46% 1.51%
Ratio of net investment income to average
daily net assets................... 0.82% 0.99% 1.00% 0.67% 0.81%
Portfolio Turnover Rate................ 29% 12% 12% 30% 15%
Average commision rate paid (2)........ $ 0.1882 -- -- -- --
<FN>
(1) Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each period reported. Dividends and distributions, if any, are assumed to be
invested at the net asset value on the record date.
(2) Average commission rate paid is computed by dividing the total dollar amount
of commissions paid during the fiscal year by the total number of shares
purchased and sold during the fiscal year on which commissions were charged.
For fiscal years beginning on or after September 1, 1995, a Fund is required
to disclose its average commission rate per share for security trades on
which commissions are charged.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
THE WRIGHT MANAGED EQUITY TRUST
NOTES TO FINANCIAL STATEMENTS
===============================================================================
(1) SIGNIFICANT ACCOUNTING POLICIES
The Wright Managed Equity Trust (the Trust), issuer of Wright Selected Blue
Chip Equities Fund (WBC) series, Wright Junior Blue Chip Equities Fund (WJBC)
series, Wright Quality Core Equities Fund (WQC) series, and Wright International
Blue Chip Equities Fund (WIBC) series, is registered under the Investment
Company Act of 1940, as amended, as a diversified, open-end, management
investment company. The following is a summary of significant accounting
policies consistently followed by the Trust in the preparation of its financial
statements. The policies are in conformity with generally accepted accounting
principles.
A. Investment Valuations -- Securities listed on securities exchanges or in
the NASDAQ National Market are valued at closing sale prices. Unlisted or
listed securities for which closing sale prices are not available are
valued at the mean between the latest bid and asked prices. Short-term
obligations maturing in sixty days or less are valued at amortized cost,
which approximates value. Securities for which market quotations are
unavailable are appraised at their fair value as determined in good faith
by or at the direction of the Trustees.
B. Foreign Currency Translation -- Investment security valuations, other
assets, and liabilities initially expressed in foreign currencies are
translated each business day into U.S. dollars based upon current exchange
rates. Purchases and sales of foreign investment securities and income and
expenses are translated into U.S. dollars based upon currency exchange
rates prevailing on the respective dates of such transactions.
C. Expense Reduction -- The Funds have entered into an arrangement with its
custodian whereby interest earned on uninvested cash balances are used to
offset custodian fees. All significant reductions are reported as a
reduction of expenses in the Statement of Operations.
D. Federal Taxes -- The Trust's policy is to comply with the provisions of the
Internal Revenue Code (the Code) available to regulated investment
companies and distribute to shareholders each year all of its taxable
income, including any net realized gain on investments. Accordingly, no
provision for federal income or excise tax is necessary. Withholding taxes
on foreign dividends have been provided for in accordance with the Trust's
understanding of the applicable country's tax rules and rates. For the
purpose of Code Sec 852 (b)(3)(C),WBC and WJBC hereby designate
$13,799,045 and $4,039,400, respectively as long term capital gain
distributions paid during thr taxable year.
E. Equalization -- The Funds follow the accounting practice known as
equalization by which a portion of the proceeds from sales and costs of
reacquisitions of Fund shares, equivalent on a per-share basis to the
amount of undistributed net investment income on the date of the
transaction, is credited or charged to undistributed net investment income.
As a result, undistributed net investment income per share is unaffected by
sales or reacquisitions of Fund shares.
F. Distributions -- The Trust requires that differences in the recognition or
classification of income between the financial statements and tax earnings
and profits which result only in temporary overdistributions for financial
statement purposes, are classified as distributions in excess of net
investment income or accumulated net realized gains. Distributions in
excess of tax basis earnings and profits are reported in the financial
statements as a return of capital. Permanent differences between book and
tax accounting for certain items may result in reclassification of these
items.
During the year ended December 31, 1996, the following amounts were
reclassified due to differences between book and tax accounting created
primarily by the deferral of certain losses for tax purposes and character
reclassifications between net investment income and net realized capital
gains.
Accumulated Undistrib-
uted Net Realized Gain
(Loss) on Investment Undistributed
Paid-In and Foreign Currency Net Investment
Capital Transactions Income (Loss)
- ----------------------------------------------------------------------
WBC $ 965,560 $ (649,026) $(316,534)
WJBC 2,340,265 (1,841,609) (498,656)
WQC 2,248,668 (2,248,668) -
WIBC 938,131 (52,384) (885,747)
- ------------------------------------------------------------------------
Net investment income, net realized gains (losses) and net assets were not
affected by these reclassifications.
<PAGE>
G. Other -- Investment transactions are accounted for on the date the
investments are purchased or sold. Dividend income and distributions to
shareholders are recorded on the ex-dividend date. Interest income is
recorded on the accrual basis. However, if the ex-dividend date has passed,
certain dividends from foreign securities are recorded as the Fund is
informed of the ex-dividend date.
H. Use of Estimates -- The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported
amounts of revenue and expense during the reporting period. Actual results
could differ from those estimates.
(2) INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The Trust has engaged Wright Investors' Service (Wright) to perform
investment management, investment advisory, and other services. For its
services, Wright is compensated based upon a percentage of average daily net
assets which rate is adjusted as average daily net assets exceed certain levels.
For the year ended December 31,1996, the effective annual rate was 0.63% for
WBC, 0.55% for WJBC, 0.45% for WQC, and 0.77% for WIBC. To enhance the net
income of the Funds, Wright made a reduction of its investment adviser fee by
$1,580 for the benefit of WJBC. The Trust also has engaged Eaton Vance
Management (Eaton Vance) to act as administrator of the Trust. Under the
Administration Agreement, Eaton Vance is responsible for managing the business
affairs of the Trust and is compensated based upon a percentage of average daily
net assets which rate is reduced as average daily net assets exceed certain
levels. For the year ended December 31, 1996, the effective annual rate was
0.12% for WBC, 0.20% for WJBC, 0.20% for WQC, and 0.12% for WIBC. Certain of the
Trustees and officers of the Trust are Trustees or officers of the above
organizations. Except as to Trustees of the Trust who are not affiliated with
Eaton Vance or Wright, Trustees and officers receive remuneration for their
services to the Trust out of the fees paid to Eaton Vance and Wright.
(3) DISTRIBUTION EXPENSES
The Trustees have adopted a Distribution Plan (the Plan) pursuant to Rule
12b-1 of the Investment Company Act of 1940. The Plan provides that each of the
Funds will pay Wright Investors' Service Distributors, Inc. (Principal
Underwriter), a subsidiary of Wright Investors' Service, an annual rate of 2/10
of 1% of each Fund's average daily net assets for activities primarily intended
to result in the sale of each Fund's shares. To enhance the net income of WJBC
and WQC, the Principal Underwriter made a reduction of its fee by $37,941 and
$14,839, respectively.
(4) SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number
of full and fractional shares of beneficial interest (without par value).
Transactions in Fund shares were as follows:
<TABLE>
<CAPTION>
Year Ended December 31,
- ------------------------------------------------------------------------------------------------------------------------------
1996 1995
Shares Amount Shares Amount
- ------------------------------------------------------------------------------------------------------------------------------
WRIGHT SELECTED BLUE CHIP EQUITIES FUND --
<S> <C> <C> <C> <C>
Sold ............................................... 3,370,863 $ 58,680,124 4,266,308 $ 65,320,088
Issued to shareholders in payment
of distributions declared.......................... 1,117,467 19,510,827 700,517 11,141,024
Reacquired........................................... (5,675,972) (102,627,362) (5,467,216) (84,642,460)
---------- -------------- ---------- -------------
Net decrease................................... (1,187,642) $ (24,436,411) (500,391) $ (8,181,348)
=========== =============== =========== ===============
<PAGE>
WRIGHT JUNIOR BLUE CHIP EQUITIES FUND --
Sold ............................................... 99,920 $ 1,044,278 225,623 $ 2,466,377
Issued to shareholders in payment
of distributions declared.......................... 444,180 3,864,662 444,836 4,715,097
Reacquired........................................... (1,355,874) (15,046,448) (1,650,724) (18,314,741)
---------- ------------- ---------- -------------
Net decrease................................... (811,774) $ (10,137,508) (980,265) $ (11,133,267)
=========== =============== =========== ===============
WRIGHT QUALITY CORE EQUITIES FUND --
Sold ............................................... 337,332 $ 4,468,704 655,665 $ 8,101,383
Issued to shareholders in payment
of distributions declared.......................... 394,213 4,874,918 522,768 6,525,442
Reacquired........................................... (2,543,369) (33,684,007) (1,778,830) (22,926,194)
---------- ------------- ---------- -------------
Net decrease................................... (1,811,824) $ (24,340,385) (600,397) $ (8,299,369)
=========== =============== =========== ===============
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND --
Sold ............................................... 5,048,536 $ 81,155,741 4,605,546 $ 64,343,250
Issued to shareholders in payment
of distributions declared.......................... 890,647 14,344,879 78,962 1,136,990
Reacquired........................................... (5,893,501) (92,844,086) (3,919,612) (53,780,747)
---------- ------------- ---------- -------------
Net increase................................... 45,682 $ 2,656,534 764,896 $ 11,699,493
=========== =============== =========== ===============
</TABLE>
(5) INVESTMENT TRANSACTIONS
Purchases and sales of investments, other than U.S. Government securities
and short-term obligations and redemptions in kind, for the year ended December
31,1996, were as follows:
<TABLE>
<CAPTION>
Wright Selected Wright Junior Wright Wright International
Blue Chip Blue Chip Quality Core Blue Chip
Equities Fund Equities Fund Equities Fund Equities Fund
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Purchases......................................... $ 96,097,202 $ 7,748,777 $ 17,333,784 $ 67,170,916
============ ============ ============ ============
Sales............................................. $ 143,554,776 $ 22,771,343 $ 36,324,780 $ 75,602,559
============ ============ ============ ============
Redemptions in Kind (at Value).................... $ 525,988 $ -- $ 10,330,294 $ --
============ ============ ============ ============
</TABLE>
In addition, the redemption in kind transactions resulted in realized gains
of $86,924 and $2,248,668 for WBC and WQC, respectively.
<PAGE>
(6) FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES
The cost and unrealized appreciation (depreciation) of the investment
securities owned at December 31, 1996, as computed on a federal income tax
basis, are as follows:
<TABLE>
<CAPTION>
Wright Selected Wright Junior Wright Wright International
Blue Chip Blue Chip Quality Core Blue Chip
Equities Fund Equities Fund Equities Fund Equities Fund
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Aggregate cost.................................... $ 165,198,843 $ 11,176,807 $ 21,628,452 $202,747,444
============ ============ ============ ============
Gross unrealized appreciation..................... $ 43,455,752 $ 2,982,604 $ 4,620,961 $ 71,703,920
Gross unrealized depreciation..................... (3,243,054) (54,706) (476,773) (7,294,209)
------------- ------------- ------------- -------------
Net unrealized appreciation....................... $ 40,212,698 $ 2,927,898 $ 4,144,188 $ 64,409,711
============ ============ ============ ============
</TABLE>
(7) FINANCIAL INSTRUMENTS
The Trust may trade in financial instruments with off-balance sheet risk in
the normal course of their investing activities in order to manage exposure to
market risks such as interest rates and foreign currency exchange rates. These
financial instruments include forward foreign currency exchange contracts for
WIBC. The notional or contractual amounts of these instruments represent the
investment the funds have in particular classes of financial instruments and
does not necessarily represent the amounts potentially subject to risk. The
measurement of the risks associated with these instruments is meaningful only
when all related and offsetting transactions are considered.
As of December 31, 1996, WIBC had the following forward foreign currency
exchange contracts open:
<TABLE>
<CAPTION>
Settlement Contracts In Exchange For Contracts Net Unrealized
Date to Deliver (in U. S. Dollars) at Value Depreciation
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1/07/97 Malaysian Ringgit 633,505 $250,893 $250,774 $ (119)
1/08/97 Great British Pound 118,260 202,757 201,835 (922)
1/09/97 Spanish Pesata 46,019,682 354,475 354,297 (178)
----------- ----------- ----------- -----------
TOTAL $808,125 $806,906 $(1,219)
========== ========= =========
</TABLE>
At December 31, 1996, the WIBC had sufficient cash and/or securities to cover
any commitments under these contracts.
(8) RISKS ASSOCIATED WITH FOREIGN INVESTMENTS
WIBC's investing in securities issued by companies whose principal business
activities are outside the United States may involve significant risks not
present in domestic investments. For example, there is generally less publicly
available information about foreign companies, particularly those not subject to
the disclosure and reporting requirements of the U.S. securities laws. Foreign
issuers are generally not bound by uniform accounting, auditing, and financial
reporting requirements and standards of practice comparable to those applicable
to domestic issuers. Investments in foreign securities also involve the risk of
possible adverse changes in investment
<PAGE>
or exchange control regulations, expropriation or confiscatory taxation,
limitation on the removal of funds or other assets of WIBC, political or
financial instability or diplomatic and other developments which could affect
such investments. Foreign stock markets, while growing in volume and
sophistication, are generally not as developed as those in the United States,
and securities of some foreign issuers (particularly those located in developing
countries) may be less liquid and more volatile than securities of comparable
U.S. companies. In general, there is less overall governmental supervision and
regulation of foreign securities markets, broker-dealers, and issuers than in
the United States.
Settlement of securities transactions in foreign countries may be delayed
and is generally less frequent than in the United States, which could affect the
liquidity of WIBC's assets. WIBC may be unable to sell securities where the
registration process is incomplete and may experience delays in receipt of
dividends.
- -------------------------------------------------------------------------------
INDEPENDENT AUDITORS' REPORT
To the Trustees and Shareholders of
The Wright Managed Equity Trust:
We have audited the accompanying statements of assets and
liabilities, including the portfolios of investments, of The Wright Managed
Equity Trust (the Trust) (comprising, respectively, of Wright Selected Blue
Chip Equities Fund, Wright Junior Blue Chip Equities Fund, Wright Quality
Core Equities Fund, and Wright International Blue Chip Equities Fund) as of
December 31, 1996, the related statements of operations for the year then
ended, the statements of changes in net assets for the years ended December
31, 1996 and 1995, and the financial highlights for each of the years in
the five-year period ended December 31, 1996. 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 as of December 31, 1996, by
correspondence with the custodian and brokers; where replies were not
received from brokers, we performed other auditing procedures. 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 aforementioned Funds of The Wright Managed Equity Trust as of December
31, 1996, 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.
Boston, Massachusetts DELOITTE & TOUCHE LLP
January 31, 1997
<PAGE>
WRIGHT U.S. TREASURY MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
December 31, 1996
Face Interest Maturity
Amount Issuer Rate Date Value
- ----------------------------------------------------------------------------
$ 400,000 U. S. Treasury Bills 5.090% 01/09/97 $ 399,547
1,000,000 U. S. Treasury Bills 5.310% 01/09/97 998,820
500,000 U. S. Treasury Bills 5.325% 01/09/97 499,408
1,000,000 U. S. Treasury Bills 5.010% 01/09/97 998,887
600,000 U. S. Treasury Bills 5.250% 02/06/97 596,850
3,600,000 U. S. Treasury Bills 5.020 02/06/97 3,581,928
1,600,000 U. S. Treasury Bills 5.270 03/06/97 1,585,010
300,000 U. S. Treasury Bills 5.270% 03/06/97 297,190
600,000 U. S. Treasury Bills 5.080% 03/06/97 594,582
3,100,000 U. S. Treasury Bills 4.880 03/06/97 3,073,106
1,500,000 U. S. Treasury Bills 5.245% 04/03/97 1,479,894
1,000,000 U. S. Treasury Bill 5.050% 04/03/97 987,095
3,700,000 U. S. Treasury Bills 4.945% 04/03/97 3,653,242
1,300,000 U. S. Treasury Bills 5.100% 05/01/97 1,277,900
700,000 U. S. Treasury Bills 5.060% 05/01/97 688,193
300,000 U. S. Treasury Bills 5.050% 05/01/97 294,950
3,000,000 U. S. Treasury Bills 5.010% 05/01/97 2,949,901
1,200,000 U. S. Treasury Bills 5.050% 05/29/97 1,175,087
500,000 U. S. Treasury Bills 5.070% 05/29/97 489,578
500,000 U. S. Treasury Bills 5.020% 05/29/97 489,681
300,000 U. S. Treasury Bills 5.030% 05/29/97 293,796
1,500,000 U. S. Treasury Bills 5.000% 01/02/97 1,499,792
1,300,000 U. S. Treasury Bills 5.100% 01/16/97 1,297,238
1,400,000 U. S. Treasury Bills 5.030% 01/16/97 1,397,066
1,100,000 U. S. Treasury Bills 5.120% 01/23/97 1,096,557
1,400,000 U. S. Treasury Bills 5.080% 01/23/97 1,395,654
2,600,000 U. S. Treasury Bills 4.975% 01/30/97 2,589,580
2,900,000 U. S. Treasury Bills 5.310% 02/13/97 2,881,607
3,000,000 U. S. Treasury Bills 5.050% 02/20/97 2,978,958
2,000,000 U. S. Treasury Bills 5.060% 02/27/97 1,983,977
2,000,000 U. S. Treasury Bills 5.075% 02/27/97 1,983,928
2,000,000 U. S. Treasury Bills 4.930% 02/27/97 1,984,388
800,000 U. S. Treasury Bills 5.060% 03/13/97 792,016
500,000 U. S. Treasury Bill 5.020% 03/13/97 495,050
3,800,000 U. S. Treasury Bills 5.030% 03/13/97 3,762,303
5,700,000 U. S. Treasury Bills 4.770% 03/20/97 5,641,091
2,400,000 U. S. Treasury Bills 4.980% 03/27/97 2,371,780
4,000,000 U. S. Treasury Bills 4.850% 03/27/97 3,954,195
1,600,000 U. S. Treasury Bills 5.000% 04/10/97 1,578,000
700,000 U. S. Treasury Bills 4.950% 04/10/97 690,471
3,000,000 U. S. Treasury Bills 4.920% 04/10/97 2,959,410
1,000,000 U. S. Treasury Bills 5.000 04/10/97 986,250
1,000,000 U. S. Treasury Bill 5.040% 04/17/97 985,160
1,100,000 U. S. Treasury Bill 5.040% 04/17/97 1,083,676
3,000,000 U. S. Treasury Bills 4.950% 04/17/97 2,956,276
2,000,000 U. S. Treasury Bills 4.985% 04/17/97 1,970,644
6,900,000 U. S. Treasury Bills 4.960% 04/24/97 6,792,574
500,000 U. S. Treasury Bills 5.055% 05/08/97 491,083
$ 500,000 U. S. Treasury Bills 5.040% 05/08/97 491,110
1,800,000 U. S. Treasury Bills 4.975% 05/08/97 1,768,409
300,000 U. S. Treasury Bills 4.950% 05/08/97 294,761
800,000 U. S. Treasury Bills 5.010% 05/08/97 785,861
2,900,000 U. S. Treasury Bills 5.055% 05/15/97 2,845,434
3,500,000 U. S. Treasury Bills 5.060% 05/22/97 3,430,635
-------------
TOTAL INVESTMENTS
AT AMORTIZED COST -- 99.4% $94,619,579
Other Assets, less Liabilities -- 0.6% 563,930
-------------
Net Assets -- 100.0% $95,183,509
==============
See notes to financial statements
<PAGE>
WRIGHT U.S. TREASURY MONEY MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1996
- ----------------------------------------------------------------------------
ASSETS:
Investments, at amortized cost and value
(Note 1A).............................. $ 94,619,579
Cash..................................... 107,388
Receivable for Fund shares sold.......... 821,011
------------
Total Assets........................... $ 95,547,978
------------
LIABILITIES:
Payable for Fund shares reacquired....... $ 198,176
Payable for dividend disbursing agent.... 132,600
Investment Adviser fee payable........... 22,919
Trustees' fees payable................... 50
Accrued expenses and other liabilities... 10,724
------------
Total Liabilities...................... $ 364,469
------------
NET ASSETS (Consisting of paid-in capital).. $ 95,183,509
=============
Net Asset Value, Offering Price, and Redemption
Price Per Share ($95,183,509 / 95,183,509
shares of beneficial interest outstanding) $1.00
=============
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1996
- ----------------------------------------------------------------------------
INVESTMENT INCOME:
Interest income (Note 1B)................ $ 3,017,861
------------
Expenses --
Investment Adviser fee (Note 3)........ $ 203,163
Administrator fee (Note 3)............. 40,793
Compensation of Trustees not affiliated with
the Investment Adviser or Administrator 1,307
Custodian fee (Note 1C)................ 46,156
Audit and legal........................ 17,167
Registration costs..................... 39,801
Transfer & dividend disbursing agent fees 19,451
Shareholder communication expense...... 6,341
Amortization of organization costs..... 4,953
Printing............................... 3,883
Miscellaneous.......................... 6,739
------------
Total expenses....................... $ 389,754
------------
Deduct --
Reduction of Investment Adviser
fee (Note 3)........................ $ 127,441
Reduction of custodian fee (Note 1C). 7,855
------------
Total deductions................... $ 135,296
------------
Net expenses........................... $ 254,458
------------
Net investment income.................. $ 2,763,403
=============
<TABLE>
<CAPTION>
Year Ended
December 31,
- ---------------------------------------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS 1996 1995
- ---------------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS:
<S> <C> <C>
Net investment income.................................................................. $ 2,763,403 $ 2,423,432
------------ ------------
DIVIDENDS DECLARED FROM NET INVESTMENT INCOME (Note 2).................................... $ (2,763,403) $ (2,423,432)
------------ ------------
FROM FUND SHARE (PRINCIPAL) TRANSACTIONS AT NET ASSET VALUE OF $1.00 PER SHARE:
Proceeds from sale of shares........................................................... $254,493,576 $217,876,175
Net asset value of shares issued to shareholders in payment of dividends declared...... 1,528,366 1,823,063
Cost of shares reacquired.............................................................. (206,727,380) (242,687,133)
------------ ------------
Increase (decrease) in net assets from Fund share transactions....................... $ 49,294,562 $(22,987,895)
------------ ------------
Net increase (decrease) in net assets.............................................. $ 49,294,562 $(22,987,895)
NET ASSETS:
Beginning of year...................................................................... 45,888,947 68,876,842
------------ ------------
End of year............................................................................ $ 95,183,509 $ 45,888,947
============= =============
</TABLE>
See notes to financial statements.
<PAGE>
WRIGHT U.S. TREASURY MONEY MARKET FUND
<TABLE>
<CAPTION>
Year Ended December 31,
- ---------------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1996 1995 1994 1993 1992
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value -- beginning of year........... $1.00 $1.00 $1.00 $1.00 $1.00
Income from Investment Operations:
Net investment income(1) .................. 0.04745 0.05212 0.03494 0.02503 0.03221
Less Distributions:
From net investment income.................. (0.04745) (0.05212) (0.03494) (0.02503) (0.03221)
---------- --------- --------- --------- ---------
Net asset value -- end of year................. $1.00 $1.00 $1.00 $1.00 $1.00
========= ========= ========= ========= =========
Total Return(2)................................ 4.85% 5.34% 3.55% 2.53% 3.27%
Ratios/Supplemental Data:
Net assets, end of year (000 omitted)....... $95,184 $45,889 $68,877 $11,011 $13,856
Ratio of net expenses to average daily
net assets(1)............................. 0.45%(3) 0.46%(3) 0.45% 0.45% 0.46%
Ratio of net investment income to average daily
net assets(1)............................. 4.73% 5.22% 3.77% 2.52% 3.19%
<FN>
(1)During each of the above periods, the Investment Adviser reduced its fee and
in certain periods was allocated a portion of the operating expenses. Had
such actions not been undertaken, net investment income per share and the
ratios would have been as follows:
Year Ended December 31,
- ---------------------------------------------------------------------------------------------------------------------------------
1996 1995 1994 1993 1992
- ---------------------------------------------------------------------------------------------------------------------------------
Net investment income per share................ $0.04524 $0.05120 $0.03253 $0.01977 $0.02958
========= ========= ========= ========= =========
Ratios (As a percentage of average daily net assets):
Expenses.................................... 0.67% 0.65% 0.71% 0.97% 0.72%
========= ========= ========= ========= =========
Net investment income ...................... 4.51% 5.03% 3.51% 1.99% 2.93%
========= ========= ========= ========= =========
(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 period reported. Dividends and distributions, if any, are assumed to be
invested at the net asset value on the payable date.
(3)Custodian fees were reduced by credits resulting from cash balances the Fund
maintained with the Custodian (Note 1C). The computation of net expenses to
average daily net assets reported above is computed without consideration of
such credits, in accordance with reporting regulations in effect beginning in
1995. If these credits were considered, the ratio of net expenses to average
daily net assets would have been reduced to 0.44% and 0.45% for the years
ended December 31, 1996 and 1995, respectively.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT U.S. TREASURY NEAR TERM FUND (WNTB)
PORTFOLIO OF INVESTMENTS
December 31, 1996
<TABLE>
<CAPTION>
Face Coupon Maturity Market Current Yield To
Amount Description Rate Date Price Value Yield(1) Maturity(1)
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 3,000,000 U. S. Treasury Notes 6.875% 03/31/97 $100.359 $ 3,010,770 6.85% 5.31%
2,000,000 U. S. Treasury Notes 6.375% 06/30/97 100.516 2,010,320 6.34% 5.31%
6,200,000 U. S. Treasury Notes 5.500% 07/31/97 100.047 6,202,914 5.50% 5.41%
2,500,000 U. S. Treasury Notes 5.625% 10/31/97 100.047 2,501,175 5.62% 5.56%
7,000,000 U. S. Treasury Notes 6.000% 11/30/97 100.312 7,021,840 5.98% 5.64%
4,000,000 U. S. Treasury Notes 7.250% 02/15/98 101.641 4,065,640 7.13% 5.71%
2,100,000 U. S. Treasury Notes 8.125% 02/15/98 102.594 2,154,474 7.92% 5.70%
7,000,000 U. S. Treasury Notes 5.125% 03/31/98 99.328 6,952,960 5.16% 5.68%
20,000,000 U. S. Treasury Notes 7.875% 04/15/98 102.609 20,521,800 7.68% 5.73%
3,450,000 U. S. Treasury Notes 9.000% 05/15/98 104.219 3,595,556 8.64% 5.75%
2,900,000 U. S. Treasury Notes 5.125% 06/30/98 99.094 2,873,726 5.17% 5.76%
5,100,000 U. S. Treasury Notes 5.875% 08/15/98 100.047 5,102,397 5.87% 5.83%
4,500,000 U. S. Treasury Notes 6.125% 08/31/98 100.437 4,519,665 6.10% 5.84%
2,000,000 U. S. Treasury Notes 7.125% 10/15/98 102.125 2,042,500 6.98% 5.85%
4,400,000 U. S. Treasury Notes 6.375% 01/15/99 100.937 4,441,228 6.32% 5.88%
1,400,000 U. S. Treasury Notes 5.875% 03/31/99 99.906 1,398,684 5.88% 5.92%
3,000,000 U. S. Treasury Notes 7.000% 04/15/99 102.234 3,067,020 6.85% 5.94%
8,500,000 U. S. Treasury Notes 6.375% 07/15/99 100.906 8,577,010 6.32% 5.98%
2,000,000 U. S. Treasury Notes 8.000% 08/15/99 104.750 2,095,000 7.64% 6.02%
2,000,000 U. S. Treasury Notes 7.875% 11/15/99 104.766 2,095,320 7.52% 6.03%
1,500,000 U. S. Treasury Notes 8.500% 02/15/00 106.797 1,601,955 7.96% 6.08%
11,100,000 U. S. Treasury Notes 7.125% 02/29/00 102.953 11,427,783 6.92% 6.08%
8,000,000 U. S. Treasury Notes 6.250% 05/31/00 100.406 8,032,480 6.23% 6.11%
1,500,000 U. S. Treasury Notes 5.625% 02/28/01 98.016 1,470,240 5.74% 6.17%
9,650,000 U. S. Treasury Notes 7.500% 11/15/01 105.266 10,158,169 7.13% 6.23%
3,400,000 Federal Home Loan Banks 5.020% 11/16/98 98.410 3,345,940 5.10% 5.93%
-----------
Total Government Interests (identified cost, $129,286,415)-- 100% $130,286,566
RESERVE FUNDS -- 0.3%
425,000 American Express Corp. 6.753% 01/02/97 100.00 425,000 6.75% 6.75%
----------- ------ ------
Total Investments (identified cost, $129,711,415) -- 100.3% $130,711,566 6.63% 5.85%
======= =======
Other Assets, Less Liabilities -- (0.3%) (386,532)
-----------
Net Assets -- 100.0% $130,325,034
============
Average Maturity -- 2.0 Years (1)
(1) Unaudited.
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT U.S. TREASURY NEAR TERM FUND
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1996
- -----------------------------------------------------------------------------
ASSETS:
Investments --
Identified cost........................ $129,711,415
Unrealized appreciation................ 1,000,151
------------
Total value (Note 1A)................ $130,711,566
Cash..................................... 2,806
Receivable for Fund shares sold.......... 8,121
Interest receivable...................... 2,167,394
------------
Total Assets........................... $132,889,887
------------
LIABILITIES:
Payable for Fund shares reacquired....... $ 2,265,837
Payable to dividend disbursing agent..... 284,815
Trustees' fees payable................... 50
Accrued expenses and other liabilities... 14,151
------------
Total Liabilities...................... $ 2,564,853
------------
NET ASSETS.................................. $130,325,034
============
NET ASSETS CONSIST OF:
Proceeds from sales of shares (including
shares issued to shareholders in payment of
distributions declared), less cost of shares
redeemed................................. $148,556,574
Accumulated net realized loss on investment
transactions (computed on the basis of
identified cost)......................... (19,397,234)
Unrealized appreciation of investments
(computed on the basis of identified cost) 1,000,151
Undistributed net investment income......... 165,543
------------
Net assets applicable to outstanding shares $130,325,034
============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING.............................. 12,720,912
============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST................... $10.24
============
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1996
- ----------------------------------------------------------------------------
INVESTMENT INCOME:
Interest Income (Note 1B)................ $ 9,408,025
------------
Expenses --
Investment Adviser fee (Note 3)........ $ 584,296
Administrator fee (Note 3)............. 116,024
Compensation of Trustees not affiliated with
the Investment Adviser or Administrator 1,280
Distribution expenses (Note 4)......... 280,119
Custodian fee.......................... 51,732
Transfer and dividend disbursing agent fees 28,042
Shareholder communication expense...... 15,969
Audit services......................... 31,621
Registration costs..................... 19,219
Printing............................... 977
Legal services......................... 667
Miscellaneous.......................... 8,771
------------
Total expenses....................... $ 1,138,717
Deduct --
Reduction of custodian fee (Note 1C). 7,845
------------
Net expenses......................... $ 1,130,872
------------
Net investment income.............. $ 8,277,153
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Net realized gain on investment transactions
(identified cost basis)................ $ 564,027
Change in unrealized appreciation
of investments......................... (3,403,735)
------------
Net realized and unrealized loss
on investments..................... $ (2,839,708)
------------
Net increase in net assets
from operations.................... $ 5,437,445
============
See notes to financial statements
<PAGE>
WRIGHT U.S. TREASURY NEAR TERM FUND
<TABLE>
<CAPTION>
Year Ended
December 31,
- -------------------------------------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS 1996 1995
- -------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From operations --
<S> <C> <C>
Net investment income.................................................. $ 8,277,153 $ 10,600,630
Net realized gain (loss) on investment
transactions......................................................... 564,027 (376,568)
Change in unrealized appreciation
of investments....................................................... (3,403,735) 10,227,881
------------ ------------
Increase in net assets from operations............................ $ 5,437,445 $ 20,451,943
Distributions to shareholders from net investment income................... (8,272,352) (10,580,700)
Net decrease from Fund share transactions (Note 5)......................... (10,439,893) (78,393,631)
------------ ------------
Net decrease in net assets........................................ $ (13,274,800) $ (68,522,388)
NET ASSETS:
At beginning of year....................................................... 143,599,834 212,122,222
------------ ------------
At end of year............................................................. $ 130,325,034 $ 143,599,834
============== ==============
UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED
IN NET ASSETS.............................................................$ 165,543 $ 209,683
============== ==============
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT U.S. TREASURY NEAR TERM FUND
<TABLE>
<CAPTION>
Year Ended December 31,
- --------------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1996 1995 1994 1993 1992
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......... $ 10.450 $ 9.920 $ 10.840 $ 10.660 $ 10.750
-------- -------- -------- -------- --------
Income (loss) from Investment Operations:
Net investment income.................... $ 0.606 $ 0.631 $ 0.588 $ 0.655 $ 0.739
Net realized and unrealized gain (loss)
on investments......................... (0.212) 0.524 (0.920) 0.180 (0.090)
-------- -------- -------- -------- --------
Total income (loss) from investment
operations........................... $ 0.394 $ 1.155 $ (0.332) $ 0.835 $ 0.649
-------- -------- -------- -------- --------
Less distributions from net investment income $ (0.604) $ (0.625) $ (0.588) $ (0.655) $ (0.739)
-------- -------- -------- -------- --------
Net asset value, end of year................ $ 10.240 $ 10.450 $ 9.920 $ 10.840 $ 10.660
========= ========= ========= ========= ========
Total Return(1)............................. 3.91% 11.93% (3.10%) 7.95% 6.26%
Ratios/Supplemental Data:
Net assets, end of year (000 omitted).... $ 130,325 $ 143,600 $212,122 $ 380,917 $371,074
Ratio of expenses to average net assets.. 0.8% 0.8% 0.7% 0.7% 0.8%
Ratio of net investment income to average
net assets............................. 5.9% 6.2% 5.7% 6.0% 6.9%
Portfolio Turnover Rate.................. 28% 21% 33% 22% 6%
<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>
WRIGHT U.S. TREASURY FUND (WUSTB)
PORTFOLIO OF INVESTMENTS
December 31, 1996
<TABLE>
<CAPTION>
Face Coupon Maturity Market Current Yield To
Amount Description Rate Date Price Value Yield(1) Maturity(1)
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 5,500,000 U. S. Treasury Notes 5.875% 11/15/99 $ 99.609 $ 5,478,495 5.90% 6.02%
3,400,000 U. S. Treasury Notes 6.250% 05/31/00 100.406 3,413,804 6.23% 6.11%
5,700,000 U. S. Treasury Notes 5.250% 01/31/01 96.828 5,519,196 5.42% 6.14%
600,000 U. S. Treasury Notes 6.625% 07/31/01 101.594 609,564 6.52% 6.22%
1,000,000 U. S. Treasury Notes 6.250% 02/15/03 99.875 998,750 6.25% 6.27%
14,200,000 U. S. Treasury Notes 6.500% 05/15/05 100.672 14,295,424 6.46% 6.39%
2,000,000 U. S. Treasury Notes 5.875% 11/15/05 96.422 1,928,440 6.09% 6.41%
4,500,000 U. S. Treasury Notes 5.625% 02/15/06 94.625 4,258,125 5.95% 6.41%
600,000 U. S. Treasury Bonds 11.625% 11/15/04 132.031 792,186 8.81% 6.38%
8,950,000 U. S. Treasury Bonds 6.500% 08/15/05 100.641 9,007,370 6.46% 6.40%
1,000,000 U. S. Treasury Bonds 10.000% 05/15/10 122.281 1,222,810 8.18% 7.35%
1,300,000 U. S. Treasury Bonds 14.000% 11/15/11 153.766 1,998,958 9.11% 7.82%
4,400,000 U. S. Treasury Bonds 7.250% 05/15/16 105.594 4,646,136 6.86% 6.73%
-----------
Total Investments (identified cost, $53,927,911)-- 98.5% $54,169,258
Other Assets, less Liabilities-- 1.5% 808,691
-----------
Net Assets-- 100.0% $54,977,949
============
Average Maturity -- 8.3 Years (1)
(1) Unaudited.
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT U.S. TREASURY FUND
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1996
- -----------------------------------------------------------------------------
ASSETS:
Investments --
Identified cost........................ $ 53,927,911
Unrealized appreciation................ 241,347
------------
Total value (Note 1A)................ $ 54,169,258
Cash..................................... 393,969
Receivable for Fund shares sold.......... 139,173
Interest receivable...................... 763,630
------------
Total Assets........................... $ 55,466,030
------------
LIABILITIES:
Payable for Fund shares reacquired....... $ 323,405
Payable to dividend disbursing agent..... 157,828
Trustees' fees payable................... 50
Accrued expenses and other liabilities... 6,798
------------
Total Liabilities...................... $ 488,081
------------
NET ASSETS.................................. $ 54,977,949
============
NET ASSETS CONSIST OF:
Proceeds from sales of shares (including shares
issued to shareholders in payment of distributions
declared), less cost of shares redeemed.. $ 54,271,290
Accumulated net realized gain on investments
(computed on the basis of identified cost) 448,189
Unrealized appreciation of investments (computed
on the basis of identified cost)......... 241,347
Undistributed net investment income......... 17,123
------------
Net assets applicable to outstanding shares $ 54,977,949
============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING.............................. 4,047,706
============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST................... $13.58
============
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1996
- ---------------------------------------------------------------------------
INVESTMENT INCOME:
Interest Income (Note 1B)................ $ 2,633,329
------------
Expenses --
Investment Adviser fee (Note 3)........ $ 163,849
Administrator fee (Note 3)............. 40,959
Compensation of Trustees not affiliated with
the Investment Adviser or Administrator 1,294
Distribution expenses (Note 4)......... 81,923
Custodian fee.......................... 37,011
Audit services......................... 19,100
Transfer and dividend disbursing agent fees 8,131
Shareholder communication expense...... 4,214
Registration costs..................... 27,462
Printing............................... 624
Legal services......................... 667
Miscellaneous.......................... 5,219
------------
Total expenses....................... $ 390,453
------------
Deduct --
Reduction of distribution expenses
by Principal Underwriter (Note 4)... $ 6,191
Reduction of custodian fee (Note 1C). 28,748
------------
Total deductions..................... $ 34,939
------------
Net expenses......................... $ 355,514
------------
Net investment income.............. $ 2,277,815
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Net realized gain on investment transactions
(identified cost basis)................ $ 1,565,818
Change in unrealized appreciation
of investments......................... (2,085,302)
------------
Net realized and unrealized loss
on investments..................... $ (519,484)
------------
Net increase in net assets
from operations.................... $ 1,758,331
============
See notes to financial statements
<PAGE>
WRIGHT U.S. TREASURY FUND
<TABLE>
<CAPTION>
Year Ended
December 31,
- ---------------------------------------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS 1996 1995
- ---------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From operations --
<S> <C> <C>
Net investment income.................................................. $ 2,277,815 $ 1,071,994
Net realized gain on investment
transactions......................................................... 1,565,818 529,670
Change in unrealized appreciation
of investments....................................................... (2,085,302) 2,464,279
------------ ------------
Increase in net assets from operations............................ $ 1,758,331 $ 4,065,943
------------ -------------
Distributions to shareholders --
From net investment income............................................. $ (2,268,131) $ (1,072,005)
From net realized gain on investments.................................. (683,329) --
------------ ------------
Total distributions............................................... $ (2,951,460) $ (1,072,005)
------------ -------------
Net increase (decrease) from Fund share transactions
(Note 5) .............................................................. $ 41,014,834 $ (4,496,109)
------------ ------------
Net increase (decrease) in net assets............................. $ 39,821,705 $ (1,502,171)
NET ASSETS:
At beginning of year....................................................... 15,156,244 16,658,415
------------ ------------
At end of year............................................................. $ 54,977,949 $ 15,156,244
============== ==============
UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED
IN NET ASSETS.............................................................. $ 17,123 $ 7,439
============== ==============
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT U.S. TREASURY FUND
<TABLE>
<CAPTION>
Year Ended December 31,
- ---------------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1996(3) 1995 1994 1993 1992
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......... $ 14.710 $ 12.250 $ 14.360 $ 13.190 $ 13.220
-------- -------- -------- -------- --------
Income (loss) from Investment Operations:
Net investment income(1)................. $ 0.769 $ 0.880 $ 0.880 $ 0.892 $ 0.911
Net realized and unrealized gain (loss)
on investments......................... (0.973) 2.458 (2.110) 1.170 (0.030)
-------- -------- -------- -------- --------
Total income (loss)
from investment operations........... $ (0.204) $ 3.338 $ (1.230) $ 2.062 $ 0.881
-------- -------- -------- -------- --------
Less Distributions:
From net investment income............... $ (0.756) $ (0.878) $ (0.880) $ (0.892) $ (0.911)
From net realized gain................... (0.170) -- -- -- --
-------- -------- -------- -------- --------
Total distributions.................... $ (0.926) $ (0.878) $ (0.880) $ (0.892) $ (0.911)
-------- -------- -------- -------- --------
Net asset value, end of year................ $ 13.580 $ 14.710 $ 12.250 $ 14.360 $ 13.190
========= ========= ========= ========= =========
Total Return(2)............................. (1.23%) 28.18% (8.66%) 15.90% 7.07%
Ratios/Supplemental Data:
Net assets, end of year (000 omitted).... $ 54,978 $ 15,156 $ 16,658 $ 29,846 $ 29,703
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............................. 5.5% 6.6% 6.9% 6.3% 7.1%
Portfolio Turnover Rate.................. 65% 8% 1% 12% 15%
<FN>
(1)During each of the five years ended December 31, 1996, the operating
expenses of the Fund were reduced by an allocation of expenses to the
Investment Adviser or a reduction in distribution fee, or a combination
thereof. Had such action not been undertaken, the net investment income per
share and the ratios would have been as follows:
Year Ended December 31,
- --------------------------------------------------------------------------------------------------------------------------------
1996 1995 1994 1993 1992
- --------------------------------------------------------------------------------------------------------------------------------
Net investment income per share............. $ 0.769 $ 0.827 $ 0.854 $ 0.878 $ 0.898
========= ========= ========= ========= =========
Ratios (As a percentage of average net assets):
Expenses .............................. 0.9% 1.2% 1.1% 1.0% 1.0%
========= ========= ========= ========= =========
Net investment income.................... 5.5% 6.2% 6.7% 6.2% 7.0%
========= ========= ========= ========= =========
(2)Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each year reported. Dividends and distributions, if any, are assumed to be
reinvested at the net asset value on the record date.
(3)Certain of the per share data are based on average shares outstanding.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT TOTAL RETURN BOND FUND (WTRB)
PORTFOLIO OF INVESTMENTS
December 31, 1996
<TABLE>
<CAPTION>
Face Coupon Maturity Market Current Yield To
Amount Description Rate Date Price Value Yield(1) Maturity(1)
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 2,000,000 U.S. Treasury Bonds 8.250% 05/15/05 $105.406 $ 2,108,120 7.83% 7.37%
21,700,000 U.S. Treasury Bonds 6.500% 08/15/05 100.641 21,839,097 6.46% 6.40%
8,200,000 U.S. Treasury Bonds 7.250% 05/15/16 105.594 8,658,708 6.87% 6.73%
11,000,000 U.S. Treasury Notes 5.875% 11/15/99 99.609 10,956,990 5.90% 6.02%
1,900,000 U.S. Treasury Notes 5.875% 06/30/00 99.250 1,885,750 5.92% 6.12%
2,300,000 U.S. Treasury Notes 6.250% 08/31/00 100.375 2,308,625 6.23% 6.13%
4,000,000 U.S. Treasury Notes 5.750% 10/31/00 98.672 3,946,880 5.83% 6.14%
3,000,000 U.S. Treasury Notes 7.750% 02/15/01 105.672 3,170,160 7.33% 6.17%
12,500,000 U.S. Treasury Notes 6.250% 02/15/03 99.875 12,484,375 6.26% 6.27%
1,700,000 U.S. Treasury Notes 7.500% 02/15/05 106.953 1,818,201 7.01% 6.39%
11,300,000 U.S. Treasury Notes 6.500% 05/15/05 100.672 11,375,936 6.46% 6.39%
5,500,000 U.S. Treasury Notes 5.875% 11/15/05 96.422 5,303,210 6.09% 6.41%
200,000 U.S. Treasury Notes 5.625% 02/15/06 94.625 189,250 5.95% 6.41%
4,000,000 U.S. Treasury Notes 6.500% 10/15/06 100.547 4,021,880 6.47% 6.42%
----------
Total Investments (identified cost, $89,923,919)-- 98.6% $90,067,182
Other Assets, Less Liabilities -- 1.4% 1,314,449
----------
Net Assets -- 100.0% $91,381,631
============
Average Maturity -- 8.0 Years (1)
</TABLE>
(1) Unaudited.
See notes to financial statements
<PAGE>
WRIGHT TOTAL RETURN BOND FUND
STATEMENT OF ASSETS AND LIABILITIES
December 31,1996
- ---------------------------------------------------------------------------
ASSETS:
Investments --
Identified cost........................ $ 89,923,919
Unrealized appreciation................ 143,263
------------
Total value (Note 1A)................ $ 90,067,182
Cash..................................... 18,200
Receivable for Fund shares sold.......... 12,971
Interest receivable...................... 1,432,179
------------
Total Assets........................... $ 91,530,532
------------
LIABILITIES:
Payable for Fund shares reacquired....... $ 10,268
Payable to dividend disbursing agent..... 125,413
Trustees' fees payable................... 50
Accrued expenses and other liabilities... 13,170
------------
Total Liabilities...................... $ 148,901
------------
NET ASSETS.................................. $ 91,381,631
============
NET ASSETS CONSIST OF:
Proceeds from sales of shares (including shares
issued to shareholders in payment of distributions
declared), less cost of shares redeemed.. $ 91,156,702
Accumulated net realized gain on investment
transactions (computed on the basis of
identified cost)......................... 6,178
Unrealized appreciation of investments (computed
on the basis of identified cost)......... 143,263
Undistributed net investment income......... 75,488
------------
Net assets applicable to outstanding shares $ 91,381,631
============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING.............................. 7,313,412
============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST................... $12.50
============
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1996
- ------------------------------------------------------------------------
INVESTMENT INCOME:
Interest Income (Note 1B)................ $ 7,152,559
------------
Expenses --
Investment Adviser fee (Note 3)........ $ 442,120
Administrator fee (Note 3)............. 103,457
Compensation of Trustees not affiliated with
the Investment Adviser or Administrator 1,280
Distribution expenses (Note 4)......... 218,218
Custodian fee.......................... 45,296
Audit services......................... 30,698
Transfer and dividend disbursing agent fees 25,845
Shareholder communication expense...... 12,380
Registration costs..................... 19,832
Legal services......................... 667
Printing............................... 1,519
Interest expense....................... 46
Miscellaneous.......................... 6,610
------------
Total expenses....................... $ 907,968
Deduct --
Reduction of custodian fee (Note 1C). 8,952
------------
Net expenses......................... $ 899,016
------------
Net investment income.............. $ 6,253,543
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Net realized gain on investment transactions
(identified cost basis)................ $ 1,478,297
Change in unrealized appreciation
of investments......................... (7,506,256)
------------
Net realized and unrealized loss
on investments..................... $ (6,027,959)
------------
Net increase in net assets
from operations.................... $ 225,584
============
See notes to financial statements
<PAGE>
WRIGHT TOTAL RETURN BOND FUND
<TABLE>
<CAPTION>
Year Ended
December 31,
- --------------------------------------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS 1996 1995
- --------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From operations --
<S> <C> <C>
Net investment income...................................................... $ 6,253,543 $ 7,829,870
Net realized gain on investment
transactions............................................................. 1,478,297 411,969
Change in unrealized appreciation
of investments........................................................... (7,506,256) 17,483,217
------------ ------------
Increase in net assets from operations................................ $ 225,584 $ 25,725,056
Distributions to shareholders from net investment income....................... (6,256,731) (7,796,582)
Net decrease from Fund share transactions (Note 5)............................. (25,348,824) (38,663,606)
------------ ------------
Net decrease in net assets............................................ $ (31,379,971) $ (20,735,132)
NET ASSETS:
At beginning of year........................................................... 122,761,602 143,496,734
------------ ------------
At end of year................................................................. $ 91,381,631 $ 122,761,602
============== ==============
UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED
IN NET ASSETS.................................................................. $ 75,488 $ 78,676
============== ==============
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT TOTAL RETURN BOND FUND
<TABLE>
<CAPTION>
Year Ended December 31,
- ---------------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1996(2) 1995 1994 1993 1992
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......... $ 13.120 $ 11.430 $ 13.010 $ 12.610 $ 12.580
-------- -------- -------- -------- --------
Income (loss) from Investment Operations:
Net investment income.................... $ 0.720 $ 0.758 $ 0.740 $ 0.789 $ 0.830
Net realized and unrealized gain (loss) on
investments............................ (0.809) 1.685 (1.580) 0.580 0.030
-------- -------- -------- -------- --------
Total income (loss)
from investment operations........... $ (0.089) $ 2.443 $ (0.840) $ 1.369 $ 0.860
-------- -------- -------- -------- --------
Less Distributions:
From net investment income............... $ (0.709) $ (0.753) $ (0.740) $ (0.789) $ (0.830)
From net realized gain on investments.... -- -- -- (0.177) --
In excess of net realized gain on investments -- -- -- (0.003) --
-------- -------- -------- -------- --------
Total distributions.................... $ (0.709) $ (0.753) $ (0.740) $ (0.969) $ (0.830)
-------- -------- -------- -------- --------
Net asset value, end of year................ $ 12.500 $ 13.120 $ 11.430 $ 13.010 $ 12.610
========= ========= ========= ========= =========
Total Return(1)............................. 0.87% 21.97% (6.57%) 11.03% 7.13%
Ratios/Supplemental Data:
Net assets, end of year (000 omitted).... $ 91,382 $122,762 $143,497 $ 259,513 $217,564
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............................. 5.7% 6.2% 6.1% 6.0% 6.7%
Portfolio Turnover Rate.................. 96% 50% 32% 36% 13%
<FN>
(1)Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each year reported. Dividends and distributions, if any, are assumed to be
reinvested at the net asset value on the record date.
(2)Certain of the per share data are based on average shares outstanding.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT CURRENT INCOME FUND (WCIF)
PORTFOLIO OF INVESTMENTS
December 31, 1996
<TABLE>
<CAPTION>
Face Coupon Maturity Market Current
Amount Description Rate Date Price Value Yield(1)
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 1,359,586 GNMA POOL # 000545 7.500% 12/20/22 $100.062 $ 1,360,429 7.50%
2,205,436 GNMA POOL # 000723 7.500% 1/20/23 100.062 2,206,804 7.50%
2,018,625 GNMA POOL # 001268 8.000% 7/20/23 102.156 2,062,147 7.83%
129,558 GNMA POOL # 001596 9.000% 4/20/21 105.656 136,886 8.52%
518,937 GNMA POOL # 001788 7.000% 7/20/24 97.718 507,095 7.16%
987,572 GNMA POOL # 002218 7.500% 5/20/26 99.624 983,859 7.53%
6,240 GNMA POOL # 012526 8.000% 11/15/06 103.782 6,477 7.71%
4,903 GNMA POOL # 000434 8.000% 4/15/01 102.477 5,024 7.81%
1,263 GNMA POOL # 000473 7.500% 4/15/01 101.116 1,278 7.42%
3,077 GNMA POOL # 001408 6.500% 3/15/02 99.386 3,058 6.54%
3,014 GNMA POOL # 003026 8.000% 1/15/04 103.095 3,108 7.76%
1,403 GNMA POOL # 003331 8.000% 1/15/04 103.095 1,447 7.76%
3,876 GNMA POOL # 004183 8.000% 7/15/04 103.366 4,006 7.74%
2,774 GNMA POOL # 004433 9.000% 11/15/04 105.403 2,925 8.54%
963,144 GNMA POOL # 004702 7.500% 2/15/26 100.093 964,040 7.49%
7,746 GNMA POOL # 005466 8.500% 3/15/05 104.464 8,092 8.14%
785 GNMA POOL # 005561 8.500% 4/15/05 104.096 818 8.17%
3,956,983 GNMA POOL # 005601 8.000% 11/15/26 102.000 4,036,123 7.84%
3,280 GNMA POOL # 005687 7.250% 2/15/05 101.358 3,325 7.15%
4,618 GNMA POOL # 005910 7.250% 2/15/05 101.358 4,681 7.15%
17,453 GNMA POOL # 007003 8.000% 7/15/05 103.594 18,081 7.72%
2,864 GNMA POOL # 007319 6.500% 10/15/04 98.955 2,835 6.57%
7,032 GNMA POOL # 009106 8.250% 5/15/06 104.407 7,342 7.90%
9,296 GNMA POOL # 009889 7.250% 2/15/06 101.278 9,415 7.16%
1,822 GNMA POOL # 011191 7.250% 4/15/06 101.278 1,845 7.16%
100,744 GNMA POOL # 151443 10.000% 3/15/16 110.134 110,954 9.08%
32,247 GNMA POOL # 153564 10.000% 4/15/16 110.160 35,524 9.08%
172,677 GNMA POOL # 172558 9.500% 8/15/16 108.625 187,571 8.75%
181,716 GNMA POOL # 176992 8.000% 11/15/16 103.555 188,176 7.73%
53,259 GNMA POOL # 177784 8.000% 10/15/16 103.499 55,123 7.73%
63,354 GNMA POOL # 180033 9.500% 9/15/16 108.625 68,819 8.75%
11,057 GNMA POOL # 188060 9.500% 10/15/16 108.625 12,011 8.75%
8,161 GNMA POOL # 190959 8.500% 2/15/17 105.518 8,611 8.06%
144,260 GNMA POOL # 192357 8.000% 4/15/17 103.499 149,309 7.73%
490,228 GNMA POOL # 194057 8.500% 4/15/17 105.531 517,343 8.05%
109,267 GNMA POOL # 194287 9.500% 3/15/17 108.625 118,692 8.75%
876,564 GNMA POOL # 194926 8.500% 2/15/17 105.518 924,933 8.06%
15,221 GNMA POOL # 196063 8.500% 3/15/17 105.518 16,061 8.06%
207,669 GNMA POOL # 199537 8.000% 3/15/17 103.499 214,936 7.73%
323,231 GNMA POOL # 203369 8.000% 12/15/16 103.499 334,542 7.73%
15,960 GNMA POOL # 206740 10.000% 10/15/17 110.140 17,579 9.08%
<PAGE>
114,020 GNMA POOL # 206762 9.000% 4/15/21 106.593 121,538 8.44%
94,616 GNMA POOL # 207019 8.000% 3/15/17 103.499 97,928 7.73%
33,900 GNMA POOL # 208076 8.000% 4/15/17 103.611 35,125 7.72%
33,400 GNMA POOL # 210520 10.500% 8/15/17 111.747 37,324 9.40%
34,713 GNMA POOL # 210618 9.500% 4/15/17 108.625 37,707 8.75%
163,148 GNMA POOL # 211013 9.000% 1/15/20 106.655 174,006 8.44%
167,455 GNMA POOL # 211231 8.500% 5/15/17 105.518 176,695 8.06%
107,457 GNMA POOL # 212601 8.500% 6/15/17 105.518 113,387 8.06%
34,914 GNMA POOL # 218420 8.500% 11/15/21 104.750 36,573 8.12%
256,313 GNMA POOL # 219335 8.000% 5/15/17 103.499 265,282 7.73%
260,296 GNMA POOL # 220703 8.000% 5/15/17 103.499 269,404 7.73%
28,785 GNMA POOL # 220917 8.500% 4/15/17 105.518 30,374 8.06%
633,833 GNMA POOL # 222112 8.000% 1/15/22 102.900 652,215 7.78%
41,738 GNMA POOL # 223126 10.000% 8/15/17 110.140 45,971 9.08%
136,713 GNMA POOL # 223133 9.500% 7/15/17 108.593 148,462 8.75%
31,960 GNMA POOL # 223348 10.000% 8/15/18 110.140 35,201 9.08%
22,305 GNMA POOL # 223588 10.000% 12/15/18 110.140 24,567 9.08%
16,565 GNMA POOL # 224078 10.000% 7/15/18 110.093 18,237 9.08%
101,972 GNMA POOL # 228308 10.000% 1/15/19 110.093 112,264 9.08%
78,208 GNMA POOL # 228483 9.500% 9/15/19 108.531 84,880 8.75%
57,262 GNMA POOL # 230223 9.500% 4/15/18 108.625 62,201 8.75%
72,459 GNMA POOL # 235000 10.000% 1/15/18 110.140 79,807 9.08%
69,081 GNMA POOL # 245580 9.500% 7/15/18 108.562 74,996 8.75%
56,939 GNMA POOL # 247473 10.000% 9/15/18 110.140 62,713 9.08%
162,114 GNMA POOL # 247681 9.000% 11/15/19 106.655 172,904 8.44%
41,486 GNMA POOL # 247872 10.000% 9/15/18 110.093 45,674 9.08%
34,798 GNMA POOL # 250412 8.000% 3/15/18 103.349 35,964 7.74%
68,845 GNMA POOL # 251241 9.500% 6/15/18 108.593 74,761 8.75%
119,377 GNMA POOL # 258911 9.500% 9/15/18 108.562 129,599 8.75%
59,373 GNMA POOL # 260999 9.500% 9/15/18 108.562 64,457 8.75%
88,738 GNMA POOL # 263439 10.000% 2/15/19 110.093 97,695 9.08%
98,401 GNMA POOL # 265267 9.500% 8/15/20 108.531 106,797 8.75%
40,840 GNMA POOL # 266983 10.000% 2/15/19 110.093 44,963 9.08%
31,663 GNMA POOL # 273690 9.500% 8/15/19 108.562 34,375 8.75%
56,420 GNMA POOL # 274489 9.500% 12/15/19 108.531 61,233 8.75%
37,979 GNMA POOL # 275456 9.500% 8/15/19 108.531 41,219 8.75%
83,909 GNMA POOL # 275538 9.500% 1/15/20 108.562 91,094 8.75%
50,860 GNMA POOL # 277205 9.000% 12/15/19 106.864 54,351 8.42%
45,711 GNMA POOL # 285467 9.500% 7/15/20 108.531 49,611 8.75%
98,896 GNMA POOL # 285744 9.000% 5/15/20 106.864 105,685 8.42%
127,047 GNMA POOL # 286556 9.000% 3/15/20 106.655 135,503 8.44%
2,988 GNMA POOL # 287999 9.000% 9/15/20 106.655 3,187 8.44%
232,468 GNMA POOL # 289092 9.000% 4/15/20 106.655 247,940 8.44%
<PAGE>
13,803 GNMA POOL # 289949 8.500% 7/15/21 104.750 14,459 8.12%
32,749 GNMA POOL # 290700 9.000% 8/15/20 106.593 34,909 8.44%
65,822 GNMA POOL # 291933 9.500% 7/15/20 108.500 71,418 8.76%
42,877 GNMA POOL # 293666 8.500% 6/15/21 105.140 45,081 8.08%
2,782 GNMA POOL # 294209 9.000% 7/15/21 106.530 2,964 8.45%
58,941 GNMA POOL # 294577 9.500% 11/15/20 108.500 63,951 8.76%
13,212 GNMA POOL # 297345 8.500% 8/15/20 104.945 13,866 8.10%
40,920 GNMA POOL # 301017 8.500% 6/15/21 104.750 42,864 8.12%
114,271 GNMA POOL # 301366 8.500% 6/15/21 104.945 119,922 8.10%
143,976 GNMA POOL # 302713 9.000% 2/15/21 106.530 153,379 8.45%
15,310 GNMA POOL # 302723 8.500% 5/15/21 104.945 16,068 8.10%
115,144 GNMA POOL # 302781 8.500% 6/15/21 104.945 120,838 8.10%
138,288 GNMA POOL # 302933 8.500% 6/15/21 104.945 145,127 8.10%
110,252 GNMA POOL # 304512 8.500% 5/15/21 105.335 116,134 8.07%
250,534 GNMA POOL # 305091 9.000% 7/15/21 106.530 266,895 8.45%
19,443 GNMA POOL # 306669 8.000% 7/15/21 102.750 19,978 7.79%
167,833 GNMA POOL # 306693 8.500% 9/15/21 104.750 175,806 8.12%
148,140 GNMA POOL # 308792 9.000% 7/15/21 106.530 157,814 8.45%
108,800 GNMA POOL # 311087 8.500% 7/15/21 104.750 113,969 8.12%
21,775 GNMA POOL # 314222 8.500% 4/15/22 104.406 22,735 8.14%
257,019 GNMA POOL # 314581 9.500% 10/15/21 108.425 278,674 8.76%
478,003 GNMA POOL # 315187 8.000% 6/15/22 102.750 491,148 7.79%
585,651 GNMA POOL # 315388 8.000% 2/15/22 102.900 602,635 7.78%
449,074 GNMA POOL # 315754 8.000% 1/15/22 102.750 461,424 7.79%
1,014,511 GNMA POOL # 316240 8.000% 1/15/22 102.750 1,042,411 7.79%
366,704 GNMA POOL # 316615 8.500% 11/15/21 104.750 384,123 8.12%
298,004 GNMA POOL # 317069 8.500% 12/15/21 104.750 312,160 8.12%
470,767 GNMA POOL # 317351 8.000% 5/15/22 102.561 482,824 7.80%
502,269 GNMA POOL # 317358 8.000% 5/15/22 102.750 516,082 7.79%
382,600 GNMA POOL # 318776 8.000% 2/15/22 102.750 393,122 7.79%
12,593 GNMA POOL # 318793 8.500% 2/15/22 105.140 13,241 8.08%
445,621 GNMA POOL # 319441 8.500% 4/15/22 104.406 465,256 8.14%
289,518 GNMA POOL # 321806 8.000% 5/15/22 102.750 297,480 7.79%
577,679 GNMA POOL # 321807 8.000% 5/15/22 102.561 592,473 7.80%
387,233 GNMA POOL # 321976 8.500% 1/15/22 104.750 405,627 8.12%
639,877 GNMA POOL # 323226 8.000% 6/15/22 102.561 656,265 7.80%
557,615 GNMA POOL # 323929 8.000% 2/15/22 102.750 572,950 7.79%
525,287 GNMA POOL # 325165 8.000% 6/15/22 102.561 538,740 7.80%
399,838 GNMA POOL # 325651 8.000% 6/15/22 102.750 410,834 7.79%
741,476 GNMA POOL # 329540 7.500% 8/15/22 100.468 744,947 7.47%
1,186,208 GNMA POOL # 329982 7.500% 2/15/23 100.468 1,191,759 7.47%
619,361 GNMA POOL # 331361 8.000% 11/15/22 102.561 635,224 7.80%
1,259,850 GNMA POOL # 335746 8.000% 10/15/22 102.561 1,292,115 7.80%
<PAGE>
445,358 GNMA POOL # 335950 8.000% 10/15/22 102.561 456,764 7.80%
2,406,208 GNMA POOL # 348103 7.000% 6/15/23 98.344 2,366,362 7.12%
877,005 GNMA POOL # 348213 6.500% 8/15/23 95.969 841,653 6.77%
1,423,271 GNMA POOL # 350372 7.000% 4/15/23 98.488 1,401,751 7.11%
1,554,781 GNMA POOL # 350659 7.500% 6/15/23 100.375 1,560,612 7.47%
1,842,477 GNMA POOL # 350938 6.500% 8/15/23 95.969 1,768,207 6.77%
835,283 GNMA POOL # 362125 7.000% 10/15/23 98.488 822,654 7.11%
907,512 GNMA POOL # 362174 6.500% 1/15/24 96.107 872,183 6.76%
868,034 GNMA POOL # 362628 7.000% 8/15/23 98.250 852,844 7.13%
933,704 GNMA POOL # 363429 7.000% 8/15/23 98.250 917,365 7.13%
837,373 GNMA POOL # 367414 6.000% 11/15/23 93.219 780,591 6.44%
1,633,663 GNMA POOL # 367806 6.500% 9/15/23 95.969 1,567,810 6.77%
2,141,556 GNMA POOL # 368238 7.000% 12/15/23 98.250 2,104,079 7.13%
2,608,910 GNMA POOL # 368502 7.000% 2/15/24 98.250 2,563,254 7.13%
1,795,459 GNMA POOL # 370773 6.000% 11/15/23 93.219 1,673,710 6.44%
2,792,225 GNMA POOL # 372050 6.500% 2/15/24 95.969 2,679,671 6.77%
952,783 GNMA POOL # 398251 7.500% 9/15/25 100.093 953,669 7.49%
1,006,070 GNMA POOL # 414736 7.500% 11/15/25 100.093 1,007,006 7.49%
988,150 GNMA POOL # 421829 7.500% 4/15/26 100.031 988,457 7.50%
992,581 GNMA POOL # 424173 7.500% 3/15/26 100.093 993,505 7.49%
1,006,423 GNMA POOL # 431036 8.000% 7/15/26 102.000 1,026,552 7.84%
1,299,058 GNMA POOL # 436723 7.500% 11/15/26 100.031 1,299,461 7.50%
1,075,000 GNMA POOL # 442193 7.500% 12/15/26 100.031 1,075,333 7.50%
-----------
Total Government Investments (identified cost, $65,163,751)-- 100.2% $64,768,377
RESERVE FUNDS - 1.3%
$ 830,000 American Express Corp 6.753% 01/02/97 100.000 830,000 6.75%
----------- ------
Total Investments (identified cost $65,993,751)-- 101.5% $65,598,377
Other Assets, less Liabilities-- (1.5%) (975,006)
-----------
Net Assets-- 100.0% $64,623,371
============
(1) Unaudited.
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT CURRENT INCOME FUND
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1996
- ----------------------------------------------------------------------------
ASSETS:
Investments --
Identified cost........................ $ 65,993,751
Unrealized depreciation................ (395,374)
------------
Total value (Note 1A)................ $ 65,598,377
Cash .................................... 3,203
Interest receivable...................... 405,635
Receivable for investments sold.......... 4,370
------------
Total Assets........................... $ 66,011,585
------------
LIABILITIES:
Payable for Fund shares reacquired....... $ 1,271,240
Payable to dividend disbursing agent..... 100,569
Trustees' fees payable................... 50
Payable to Investment Adviser( Note 3)... 4,340
Accrued expenses and other liabilities... 12,015
------------
Total Liabilities...................... $ 1,388,214
------------
NET ASSETS.................................. $ 64,623,371
============
NET ASSETS CONSIST OF:
Proceeds from sales of shares (including shares
issued to shareholders in payment of distributions
declared), less cost of shares redeemed.. $ 66,102,800
Accumulated net realized loss on investment
transactions (computed on the basis of
identified cost)......................... (1,027,355)
Unrealized depreciation of investments (computed
on the basis of identified cost)......... (395,374)
Distributions in excess of net investment income (56,700)
------------
Net assets applicable to outstanding shares$ 64,623,371
============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING.............................. 6,198,253
============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST................... $10.43
============
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1996
- -----------------------------------------------------------------------------
INVESTMENT INCOME:
Interest Income (Note 1B)................ $ 4,751,269
------------
Expenses --
Investment Adviser fee (Note 3)........ $ 256,204
Administrator fee (Note 3)............. 64,043
Compensation of Trustees not affiliated with
the Investment Adviser or Administrator 1,242
Distribution expenses (Note 4)......... 129,541
Custodian fee.......................... 52,891
Audit services......................... 19,775
Transfer and dividend disbursing agent fees 11,661
Shareholder communication expense...... 6,822
Registration costs..................... 21,470
Interest expense....................... 779
Printing............................... 624
Legal services......................... 667
Miscellaneous.......................... 7,283
------------
Total expenses....................... $ 573,002
Deduct --
Reduction of custodian fee (Note 1C). 6,486
------------
Net expenses......................... $ 566,516
------------
Net investment income.............. $ 4,184,753
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Net realized loss on investment transactions
(identified cost basis)................ $ (196,901)
Change in unrealized depreciation
of investments......................... (1,341,304)
------------
Net realized and unrealized loss
on investments..................... $ (1,538,205)
------------
Net increase in net assets
from operations.................... $ 2,646,548
============
See notes to financial statements
<PAGE>
WRIGHT CURRENT INCOME FUND
<TABLE>
<CAPTION>
Year Ended
December 31,
- --------------------------------------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS 1996 1995
- --------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From operations --
<S> <C> <C>
Net investment income.................................................. $ 4,184,753 $ 5,303,079
Net realized loss on investment
transactions......................................................... (196,901) (215,933)
Change in unrealized appreciation (depreciation)
of investments....................................................... (1,341,304) 7,735,307
------------ ------------
Increase in net assets from operations............................ $ 2,646,548 $ 12,822,453
Distributions to shareholders --
From net investment income............................................. (4,191,419) (5,270,012)
Net decrease from Fund share transactions (Note 5)......................... (176,931) (25,384,872)
------------ ------------
Net decrease in net assets........................................ $ (1,721,802) $ (17,832,431)
NET ASSETS:
At beginning of year....................................................... 66,345,173 84,177,604
------------ ------------
At end of year............................................................. $ 64,623,371 $ 66,345,173
============== ==============
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT
INCOME INCLUDED IN NET ASSETS.............................................. $ (56,700) $ 33,615
============== ==============
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT CURRENT INCOME FUND
<TABLE>
<CAPTION>
Year Ended December 31,
- ---------------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1996 1995 1994 1993 1992
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......... $ 10.670 $ 9.710 $ 10.750 $ 10.780 $ 10.850
-------- -------- -------- -------- --------
Income (loss) from Investment Operations:
Net investment income.................... $ 0.674 $ 0.696 $ 0.690 $ 0.728 $ 0.767
Net realized and unrealized gain (loss) on
investments............................ (0.239) 0.955 (1.040) (0.030) (0.069)
-------- -------- -------- -------- --------
Total income (loss)
from investment operations......... $ 0.435 $ 1.651 $ (0.350) $ 0.698 $ 0.698
-------- -------- -------- -------- --------
Less Distributions:
From net investment income............... $ (0.675) $ (0.691) $ (0.690)* $ (0.728) $ (0.767)
From net realized gain................... -- -- -- -- (0.001)
-------- -------- -------- -------- --------
Total distributions.................. $ (0.675) $ (0.691) $ (0.690) $ (0.728) $ (0.768)
-------- -------- -------- -------- --------
Net asset value, end of year................ $ 10.430 $ 10.670 $ 9.710 $ 10.750 $ 10.780
========= ========= ========= ========= =========
Total Return(1)............................. 4.31% 17.46% (3.30%) 6.59% 6.73%
Ratios/Supplemental Data:
Net assets, end of year (000 omitted).... $ 64,623 $ 66,345 $84,178 $ 115,158 $ 99,676
Ratio of net expenses to average net assets 0.9% 0.9% 0.8% 0.8% 0.9%
Ratio of net investment income to average
net assets.............................. 6.5% 6.8% 6.9% 6.7% 7.2%
Portfolio Turnover Rate.................. 9% 26% 10% 4% 13%
<FN>
* Includes distribution in excess of net investment income of $.00013 per share.
(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>
THE WRIGHT MANAGED INCOME TRUST
NOTES TO FINANCIAL STATEMENTS
(1) SIGNIFICANT ACCOUNTING POLICIES
The Trust, issuer of Wright U.S. Treasury Money Market Fund (WTMM) series,
Wright U.S. Treasury Near Term Fund (WNTB) series, Wright U.S. Treasury Fund
(WUSTB) series, Wright Total Return Bond Fund (WTRB) series, and Wright Current
Income Fund (WCIF) series, is registered under the Investment Company Act of
1940, as amended, as a diversified, open-end, management investment company. The
following is a summary of significant accounting policies consistently followed
by the Trust in the preparation of its financial statements. The policies are in
conformity with generally accepted accounting principles.
A. Investment Valuations -- Investments of the various funds for which market
quotations are readily available are valued at current market value as
furnished by a pricing service. Investments for which valuations are not
readily available will be appraised at their fair value as determined in
good faith by or at the direction of the Trustees. Short-term obligations
maturing in sixty days or less are valued at amortized cost, which
approximates value. WTMM's money market instruments are valued at amortized
cost, which the Trustees have determined in good faith constitutes value.
WTMM's use of amortized cost is subject to the Fund's compliance with
certain conditions as specified under Rule 2a-7 of the Investment Company
Act of 1940.
B. Interest Income -- Interest income consists of interest accrued and
discount earned (including both original issue and market discount) and
amortization of premium or discount on long-term debt securities when
required for federal income tax purposes. The income is accrued ratably to
the date of maturity on the investments of the Funds.
C. Expense Reduction -- The Fund has entered into an arrangement with its
custodian agent whereby interest earned on uninvested cash balance is used
to offset custodian fees. All significant reductions are reported as a
reduction of expenses in the Statement of Operations.
D. Federal Taxes-- The Trust's policy is to comply with the provisions of
the Internal Revenue Code (the Code) available to regulated investment
companies and to distribute to shareholders each year all of its taxable
income, including any net realized gain on investments. Accordingly, no
provision for federal income or excise tax is necessary. At December 31,
1996, the Trust, for federal income tax purposes, had capital loss
carryovers of $18,204 (WTMM), $19,381,446 (WNTB) and $1,027,355
(WCIF) which will reduce taxable income arising from future net realized
gain on investments, if any, to the extent permitted by the Code, and thus
will reduce the amount of the distribution to shareholders which
would otherwise be necessary to relieve the respective Fund of any
liability for federal income or excise tax. Pursuant to the Code, such
capital loss carryovers will expire as follows:
12/31 WTMM WNTB WCIF
- ---------------------------------------------------------------------------
1997 $ 48 $ 1,319,208 $ --
1998 -- 3,324,484 --
1999 -- 4,467,443 --
2000 939 2,957,673 7,132
2001 1,921 -- 8,621
2002 1,315 6,936,070 682,417
2003 -- 376,568 215,933
2004 13,981 -- 113,252
At December 31, 1996, net capital losses of $15,788 for the Near Term Bond
Fund attributable to security transactions incurred after October 31, 1996
are treated as arising on the first day of the Fund's next taxable year.
E. 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.
<PAGE>
F. Other -- Investment transactions are accounted for on the date the
investments are purchased or sold.
(2) DISTRIBUTIONS
Each Fund's policy is to determine net income once daily, as of the close
of the New York Stock Exchange and the net income so determined is declared as a
dividend to shareholders of record at the time of such determination.
Distributions of realized capital gains are made at least annually. Shareholders
may reinvest capital gain distributions in additional shares of the same Fund at
the net asset value as of the ex-dividend date. Dividends may be reinvested in
additional shares of the same Fund at the net asset value as of the payable
date.
The Trust requires that differences in the recognition or classification of
income between the financial statements and tax earnings and profits which
result in temporary overdistributions for financial statement purposes, be
classified as distributions in excess of net investment income or accumulated
net realized gains.
The tax treatment of distributions for the calendar year will be reported
to shareholders prior to February 1, 1997 and will be based on tax accounting
methods which may differ from amounts determined for financial statement
purposes.
During the year ended December 31, 1996, the following amounts were
reclassified due to differences between book and tax accounting.
Accumulated Undistrib-
uted Net Realized Gain
(Loss) on Investment Undistributed
Paid-In and Foreign Currency Net Investment
Capital Transactions Income (Loss)
- ----------------------------------------------------------------------------
WNTB $(1,672,058) $ 1,720,999 $ (48,941)
WCIF -- 83,649 (83,649)
- ----------------------------------------------------------------------------
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, 1996, the effective annual rate was 0.35% for
WTMM, 0.42% for WNTB, 0.40% for WUSTB, 0.41% for WTRB, and 0.40% for WCIF. To
enhance the net income of the Funds, Wright made a reduction of its investment
adviser fee by $127,441 for WTMM and $28,748 for the benefit of WUSTB. The Trust
also has engaged Eaton Vance Management (Eaton Vance) to act as administrator of
the Trust. Under the Administration Agreement, Eaton Vance is responsible for
managing the business affairs of the Trust and is compensated based upon a
percentage of average daily net assets which rate is reduced as average daily
net assets exceed certain levels. For the year ended December 31, 1996, the
effective annual rate was 0.07% for WTMM, 0.08% for WNTB, 0.10% for WUSTB, 0.09%
for WTRB, and 0.10% for WCIF. Certain of the Trustees and officers of the Trust
are directors/trustees and/or officers of the above organizations. Except as to
Trustees of the Trust who are not affiliated with Eaton Vance or Wright,
Trustees and officers received remuneration for their services to the Trust out
of fees paid to Eaton Vance and Wright.
(4) DISTRIBUTION EXPENSES
The Trustees have adopted a Distribution Plan (the Plan) pursuant to Rule
12b-1 of the Investment Company Act of 1940. The Plan provides that each of the
Funds, except WTMM, will pay Wright Investors' Service Distributors, Inc.
(Principal Underwriter), a subsidiary of Wright, at an annual rate of 2/10 of 1%
of the average daily net assets of each Fund for activities primarily intended
to result in the sale of each Fund's shares. For the year ended December 31,
1996, the Principal Underwriter made a reduction of its fee to WUSTB of $6,191.
<PAGE>
(5) SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number
of full and fractional shares of beneficial interest (without par value).
Transactions in Fund shares were as follows:
<TABLE>
<CAPTION>
Year Ended December 31,
- -------------------------------------------------------------------------------------------------------------------------------
1996 1995
Shares Amount Shares Amount
- -------------------------------------------------------------------------------------------------------------------------------
WRIGHT U.S. TREASURY NEAR TERM FUND --
<S> <C> <C> <C> <C>
Sales.................................................... 3,340,768 $ 34,366,823 2,507,050 $ 25,756,963
Issued to shareholders in payment of
distributions declared................................. 461,357 4,738,955 657,890 6,744,268
Redemptions.............................................. (4,819,450) (49,545,671) (10,814,467) (110,894,862)
---------- ------------- ---------- -------------
Net decrease......................................... (1,017,325) $(10,439,893) (7,649,527) $(78,393,631)
========== ============= ========== ============
WRIGHT U.S. TREASURY FUND --
Sales.................................................... 3,670,606 $ 49,896,782 111,589 $ 1,478,738
Issued to shareholders in payment
of distributions declared.............................. 164,524 2,233,676 41,352 557,152
Redemptions.............................................. (817,559) (11,115,624) (482,923) (6,531,999)
---------- ------------- ---------- -------------
Net increase (decrease).............................. 3,017,571 $ 41,014,834 (329,982) $ (4,496,109)
========== ============= ========== ============
WRIGHT TOTAL RETURN BOND FUND --
Sales.................................................... 931,801 $ 11,573,005 1,710,110 $ 21,132,654
Issued to shareholders in payment
of distributions declared.............................. 344,332 4,267,461 470,132 5,784,061
Redemptions.............................................. (3,318,666) (41,189,290) (5,380,600) (65,580,321)
---------- ------------- ---------- -------------
Net decrease......................................... (2,042,533) $(25,348,824) (3,200,358) $(38,663,606)
========== ============= ========== ============
WRIGHT CURRENT INCOME FUND --
Sales.................................................... 1,488,351 $ 15,484,497 796,965 $ 8,232,880
Issued to shareholders in payment
of distributions declared.............................. 289,710 3,004,165 397,997 4,102,611
Redemptions.............................................. (1,798,536) (18,665,593) (3,646,704) (37,720,363)
---------- ------------- ---------- -------------
Net decrease......................................... (20,475) $ (176,931) (2,451,742) $(25,384,872)
========== ============= ========== ============
</TABLE>
<PAGE>
(6) INVESTMENT TRANSACTIONS
The Trust invests primarily in debt securities. The ability of the issuers
of the debt securities held by the Trust to meet their obligations may be
affected by economic developments in a specific industry or municipality.
Purchases and sales and maturities of investments, other than short-term
obligations, were as follows:
<TABLE>
<CAPTION>
Year Ended December 31,1996
- ---------------------------------------------------------------------------------------------------------------------------------
Wright U.S. Treasury Wright U.S. Treasury Wright U.S. Wright Total Wright Current
Money Market Fund Near Term Fund Treasury Fund Return Bond Fund Income Fund
- ---------------------------------------------------------------------------------------------------------------------------------
Purchases --
<S> <C> <C> <C> <C> <C>
Non-U.S. Gov't Obligations.. $ -- $ -- $ -- $ -- $ --
============= ============= ============= ============= =============
U.S. Gov't Obligations...... $ 284,861,302 $ 61,735,570 $ 65,460,742 $ 101,867,852 $ 14,908,355
============= ============= ============= ============= =============
Sales --
Non-U.S. Gov't Obligations.. $ -- $ -- $ -- $ 44,345,402 $ --
============= ============= ============= ============= =============
U.S. Gov't Obligations...... $ 238,391,797 $ 38,766,914 $ 25,694,285 $ 81,491,598 $ 5,671,960
============= ============= ============= ============= =============
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(7) FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES
The cost and unrealized appreciation (depreciation) in value of the
investments owned at December 31, 1996, as computed on a federal income tax
basis, are as follows:
<TABLE>
<CAPTION>
Wright U.S. Treasury Wright U.S. Wright Total Wright Current
Near Term Fund Treasury Fund Return Bond Fund Income Fund
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Aggregate cost................................... $129,711,415 $ 53,927,911 $ 89,923,919 $ 65,993,751
============= ============= ============= =============
Gross unrealized appreciation.................... $ 1,502,601 $ 499,067 $ 612,547 $ 832,973
Gross unrealized depreciation.................... (502,450) (257,720) (469,284) (1,228,347)
-------------- -------------- -------------- --------------
Net unrealized appreciation (depreciation).. $ 1,000,151 $ 241,347 $ 143,263 $ (395,374)
============= ============= ============= =============
</TABLE>
<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 The Wright
Managed Income Trust (the Trust) (comprising, respectively, of U.S.
Treasury Money Market Fund, Wright U.S. Treasury Near Term Fund,
Wright U.S. Treasury Fund, Wright Total Return Bond Fund, and Wright
Current Income Fund) as of December 31, 1996, the related statements
of operations for the year then ended, the statements of changes in
net assets for the years ended December 31, 1996 and 1995, and the
financial highlights for each of the years in the five-year period
ended December 31, 1996. 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, 1996, 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, 1996, 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
January 31, 1997
<PAGE>
The Wright Managed
Equity Trust
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
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 5123
Westborough, Massachusetts 01581-5123
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.
