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Description of art work on front cover of report.
Solid blue box covering entire left hand side of cover with the name
WRIGHT INVESTORS'SERVICE in white at top.
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THE WRIGHT
MANAGED
BLUE CHIP
INVESTMENT
FUNDS
Wright logo
Annual Report
December 31,1997
<PAGE>
The Wright Managed Blue Chip Investment Funds
================================================================================
THE WRIGHT MANAGED BLUE CHIP INVESTMENT FUNDS CONSISTS OF FOUR EQUITY FUNDS FROM
THE WRIGHT MANAGED EQUITY 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. EXCEPT AS NOTED, EACH FUND OFFERS TWO CLASSES OF
SHARES DESIGNATED AS INSTITUTIONAL SHARES AND STANDARD SHARES.
Approved Wright Investment List
Securities selected for equity portfolios are drawn from investment lists
prepared by Wright Investors' Service (Wright) known as The Approved Wright
Investment List (AWIL) The Approved Wright Junior Blue Chip List (AWJBCL) and
the International Approved Wright Investment List (International AWIL).
Companies 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 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.
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 Fund (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
AWJBCL which consists of smaller companies than those on the AWIL but which meet
a higher standard of profitability and growth characteristics.
Wright Major Blue Chip Equities Fund (WMBC) seeks to enhance total investment
return of price appreciation plus income by providing management of a broadly
diversified portfolio of equities of larger well-established companies meeting
strict quality standards. In selecting companies from the AWIL for this
portfolio, the Investment Committee of Wright selects, based on quantitative
formulae, those companies which are expected to do better over the intermediate
term. The quantitative formulae takes into consideration factors such as
over/under valuation and compatibility with current market trends. Investments
in the portfolio are equally weighted in the selected securities.
<PAGE>
Wright International Blue Chip Equities Fund (WIBC). This is a broadly
diversified portfolio of equities of well-established, non-U.S. companies
meeting strict quality standards. The portfolio may buy common stocks traded on
the securities exchange of the country in which the company is based or it may
purchase American Depositary Receipts (ADR's) traded in the United States. The
portfolio is denominated in U.S. dollars and investors should understand that
fluctuations in foreign exchange rates may impact the value of their investment.
A Money Market Fund
Wright U.S. Treasury Money Market Fund (WTMM) 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. This Fund only offers Standard Shares.
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. This Fund only offers Standard Shares.
Wright Current Income Fund (WCIF) may be invested in a variety of securities and
may use a number of strategies to produce a high level of income with reasonable
stability of principal. Currently, this portfolio is primarily invested in
mortgage Participation Certificates issued by the Government National Mortgage
Association (GNMA). GNMA guarantees that the fund will receive timely principal
and interest payments. The Fund reinvests all principal payments. Dividends are
accrued daily and paid monthly.
<PAGE>
TABLE OF CONTENTS
================================================================================
INVESTMENT OBJECTIVES ..................Inside Front Cover
MANAGEMENT DISCUSSION................... 2
PERFORMANCE GRAPHS...................... 7
DIVIDEND DISTRIBUTIONS.................. 10
FINANCIAL STATEMENTS
-----------------------------
WRIGHT MANAGED EQUITY TRUST
Statements of Assets and Liabilities 15
Statements of Operations............ 17
Statements of Changes in Net Assets. 18
Financial Highlights................ 20
Notes to Financial Statements....... 24
WRIGHT MANAGED INCOME TRUST
Statements of Assets and Liabilities 30
Statements of Operations............ 32
Statements of Changes in Net Assets. 34
Financial Highlights................ 36
Notes to Financial Statements....... 41
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
Statements of Assets and Liabilities 47
Statements of Operations............ 49
Statements of Changes in Net Assets. 51
Supplementary Data.................. 53
Notes to Financial Statements....... 55
PORTFOLIOS
---------------------
Wright Major Blue Chip Equities Fund (WMBC)............ 61
Wright Total Return Bond Fund (WTRB)................... 63
Wright U.S. Treasury Money Market Fund (WTMM).......... 64
Wright Selected Blue Chip Equities Portfolio (WBC)..... 65
Wright Junior Blue Chip Equities Portfolio (WJBC)...... 67
Wright International Blue Chip Equities Portfolio (WIBC) 69
Wright U.S. Treasury Near Term Portfolio (WNTB)........ 72
Wright U.S. Treasury Portfolio (WUSTB)................. 73
Wright Current Income Portfolio (WCIF)................. 74
<PAGE>
MANAGEMENT DISCUSSION
================================================================================
EQUITY FUNDS
- ---------------
WHILE STRONGER THAN MOST MARKETS OF THE WORLD, U.S. STOCKS LOST SOME MOMENTUM AS
1997 WAS WINDING DOWN. U.S. EQUITIES PROVED TO BE QUITE RESILIENT IN THE FOURTH
QUARTER OF 1997 IN LIGHT OF ASIA'S FINANCIAL MELTDOWN. ALTHOUGH INVESTORS WERE
SHAKEN BY THE DOW'S RECORD 554-POINT DROP IN LATE OCTOBER, FOR THE QUARTER THE
DJIA WAS JUST ABOUT UNCHANGED; FOR THE FULL YEAR THE DJIA RETURNED ABOUT 25%.
THE S&P 500 RETURNED 2.9% FOR THE QUARTER AND 33% FOR ALL OF 1997. SMALLER
STOCKS WERE MORE SUSCEPTIBLE TO THE UNCERTAINTIES RAISED BY ASIA'S TROUBLES.
AFTER OUTPERFORMING THE S&P 500 IN THE THIRD QUARTER, BOTH THE S&P MIDCAP 400
AND THE SMALLCAP 600 LAGGED IN THE FOURTH.
OVERALL, FOREIGN MARKETS COULD NOT KEEP PACE WITH THE U.S. IN THE FOURTH
QUARTER. EUROPEAN MARKETS ADVANCED BY LESS THAN 1% IN THE FOURTH QUARTER, WITH
THE STRONGER DOLLAR LIMITING RETURNS SLIGHTLY. ASIAN MARKETS WERE ANOTHER STORY
AS THE CRISIS IN CONFIDENCE HAD A DOUBLE-BARRELED EFFECT ON U.S. INVESTORS,
SENDING STOCK PRICES AND CURRENCIES TUMBLING. PACIFIC RIM MARKETS LOST 16% IN
LOCAL CURRENCIES AND 22% IN DOLLARS IN THE FINAL THREE MONTHS OF 1997.
WIS BELIEVES THAT CURRENT HIGH STOCK PRICES DO NOT FULLY REFLECT THE
UNCERTAINTIES IN THE CURRENT INVESTMENT ENVIRONMENT. AS A RESULT OF ASIA'S
PROBLEMS, THE PROSPECTS FOR WORLD ECONOMIC GROWTH -AND CORPORATE PROFITS - ARE
NOT AS GOOD AS THEY APPEARED THREE MONTHS AGO. WIS HAS REDUCED ITS FORECAST OF
U.S. GDP GROWTH FOR 1998 BY ONE-HALF PERCENTAGE POINT TO 2 1/2%; EUROPE FIGURES
TO SLOW A LITTLE LESS. DEPENDING ON HOW WEAK ASIAN ECONOMIES BECOME, THERE MAY
BE MORE SCALING BACK OF GROWTH FORECASTS AHEAD. ON THE PLUS SIDE, THE THREAT OF
HIGHER INFLATION IS PRACTICALLY NIL.
U.S. STOCKS EXHIBITED SOME WEAKNESS EARLY IN THE NEW YEAR. WIS EXPECTS THAT
THE HEIGHTENED VOLATILITY SEEN SINCE SUMMER WILL TURN INTO A FULL-FLEDGED
CORRECTION BEFORE LONG. BUT WE ARE STILL THINKING CORRECTION, NOT BEAR MARKET. A
FUNDAMENTALLY SOUND U.S. ECONOMY, RELATIVELY LOW INTEREST RATES, A SURGE OF
STOCK BUY-BACKS AND ACQUISITIONS, AND FAVORABLE DEMOGRAPHIC TRENDS SHOULD ALL
HELP KEEP A FLOOR UNDER U.S. STOCK PRICES THIS YEAR.
<TABLE>
<CAPTION>
1997 1997 1996 1995 1994 1993 1992 1991
Total Return Q4 Year Year Year Year Year Year Year
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Selected Blue Chips (WBC) 3.4% 32.7% 18.6% 30.3% -3.5% 2.1% 4.7% 36.0%
Junior Blue Chips (WJBC) -2.4% 28.9% 17.5% 20.5% -2.8% 7.9% 3.3% 37.0%
Major Blue Chips (WMBC) 1.0% 33.9% 17.6% 29.0% -0.7% 1.0% 8.0% 38.9%
Int'l Blue Chips (WIBC)
Standard Shares -4.8% 1.5% 20.7% 13.6% -1.6% 28.2% -3.9% 17.2%
Institutional Shares (4.76%) (6.37%) - - - - - -
</TABLE>
WRIGHT SELECTED BLUE CHIP EQUITIES FUND
The Wright Selected Blue Chip Fund (WBC) had a total return of 3.4% for the
fourth quarter of 1997. While this was far short of the WBC's 11.0%
third-quarter return, it did beat the S&P 500's 2.9% fourth-quarter return and
was considerably better than the Lipper equity growth fund average's 1.2%
decline. For all of 1997, the WBC returned 32.7%, a significant premium over the
Lipper average's 25.1%.
The WBC's fourth-quarter performance got a boost from its overweighting in
financial stocks compared to the S&P 500, particularly in banks. The Fund got
relatively strong performance from holdings in the construction and
transportation groups. The WBC also benefitted from its underweighting in oil,
gas & coal stocks and aerospace issues,
<PAGE>
groups which were weak in the fourth quarter. Underweighting in food and
communications utilities, which were strong, detracted a bit from the WBC's
performance. Stocks in the electronics industry were among the weakest for the
quarter.
At year-end 1997, the average P/E multiple of the stocks in the Selected Blue
Chip Fund was 16 (based on forecast year-ahead earnings). These companies offer
the prospect of a better rate of earnings growth than the S&P 500 Composite.
Although the stocks in the WBC will not be immune to a stock market correction
in 1997, in our view their superior value and growth prospects should allow them
to weather the downturn in relatively good shape.
WRIGHT JUNIOR BLUE CHIP EQUITIES FUND
With smaller issues once again out of favor in the fourth quarter, the Wright
Junior Blue Chip Fund (WJBC) declined 2.4%, a smaller loss than those posted by
the S&P SmallCap 600 (-3.1%) and the Russell 2000 (-3.3%). The WJBC's 28.9%
return for all of 1997 led the S&P SmallCaps (25.6%) and the Russell 2000
(22.4%).
Compared to the S&P SmallCap 600, the WJBC's fourth-quarter performance was
helped by the Fund's undeweighting in electronics and oil, gas & coal stocks,
which were weak in the period, and by its overweighting in bank issues, which
were strong. Underweighting in utilities and a poor showing by construction
stocks detracted from fourth-quarter WJBC results.
In terms of forecast 1998 earnings, the average P/E multiple of WJBC holdings is
under 14 times, a discount of about one-third compared with the P/E on the S&P
500. This relatively low valuation could help to mitigate the effects on the
WJBC of any stock market correction.
WRIGHT MAJOR BLUE CHP EQUITIES FUND
The Wright Major Blue Chip Fund (WMBC) produced a 1.0% investment return in the
fourth quarter, compared to a 1.2% loss by the Lipper average of equity growth
funds. For all of 1997, the WMBC Fund had a total return of 33.9%, well ahead of
the Lipper average return of 25.1%.
As with the WBC, the WMBC Fund was helped by its underweighting in oil, gas, &
coal stocks for the quarter; overweighting in telecommunications and finance
companies other than banks also helped. A good performance by the drug,
cosmetics and health care issues in the Fund was also a plus. Underweighting in
bank stocks, which were strong, and a weak performance by the Fund's electronics
holdings were drags on fourth-quarter results.
The Major Blue Chip Fund's quality approach to stock selection, which it shares
with all Wright funds, is particularly attractive when slowing profit growth and
a stock market correction figure in the near-term outlook, as they do now. In
addition to superior earnings prospects, the WMBC Fund, with an average P/E of
17 times expected 1998 earnings, offers a valuation discount to the S&P 500.
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND
The Wright International Blue Chip Fund (WIBC) declined 4.8% in the fourth
quarter of 1997, a performance that, while lagging that of U.S. equities, was a
good deal better than the 8.6% decline posted by the FT/S&P Actuaries total
return index for the World ex U.S. For all of 1997, the WIBC squeezed out a
positive return of 1.5%, compared to 0.8% for the FT/S&P World ex U.S. index.
<PAGE>
The strength of the U.S. dollar, which increased about 3% against a
trade-weighted basket of currencies, and the dramatic weakness in Asian markets
took a toll on the WIBC in the fourth quarter. At the same time, the fund's
significant underexposure in Japan (4% of portfolio holdings compared with 24%
for the World ex U.S. index) significantly improved Fund performance relative to
the World ex U.S. benchmark. An overweight position in Denmark and relatively
good performance by Canadian and U.K. holdings also made positive contributions.
Weakness in German holdings pulled down the WIBC's return a bit.
The full scope of Asia's crisis and the extent that it is exported to the West
are the burning issues for the markets as 1998 begins. At this point, WIS does
not expect that U.S. and European economies will be thrown into recession by
Asia's problems. But it is likely that Western economies will see slower growth
than they otherwise would have, a prospect that may not be fully discounted in
the price levels of a number of equity markets, the U.S. included. The opposite
may be true in Asia: dramatic economic slowdowns are in store for 1998; to the
extent that Asia's problems correct some of the region's excesses and strengthen
its financial foundations, the beaten-down markets of the area may present
buying opportunities in the not too distant future.
FIXED-INCOME FUNDS
- --------------------
THE FOURTH QUARTER OF 1997 WAS THE THIRD GOOD ONE IN A ROW FOR BONDS. AVERAGED
OVER THE LENGTH OF THE YIELD CURVE, BOND YIELDS DECLINED ABOUT 35 BASIS POINTS
IN THE FINAL THREE MONTHS OF 1997, THE THIRD STRAIGHT QUARTER WITH GAINS OF
ABOUT THAT SIZE. THIRTY-YEAR TREASURY BOND YIELDS DECLINED CLOSE TO 50 BASIS
POINTS, BREAKING THROUGH THE 6.0% RESISTANCE LEVEL TO CLOSE THE YEAR AT 5.92%.
OVER ALL OF 1997, TREASURY YIELDS DECLINED AN AVERAGE OF 60 BASIS POINTS ACROSS
ALL MATURITIES. WIS'S FIXED-INCOME POLICY WAS UNCHANGED DURING THE FOURTH
QUARTER, WITH AVERAGE MATURITIES OF LONG-TERM PORTFOLIOS MAINTAINED IN A RANGE
OF 8-9 YEARS.
LAST YEAR'S STRENGTH IN BONDS DERIVED FROM A STEADY STREAM OF GOOD NEWS ON
INFLATION AROUND THE GLOBE. IN THE U.S., EVEN THOUGH A TIGHT JOBS MARKET PUSHED
WAGES HIGHER, IMPROVING PRODUCTIVITY AND GLOBAL COMPETITION COMBINED TO KEEP
INFLATION AT A 30-YEAR LOW. IN THE FOURTH QUARTER OF 1997, THE FALL-OUT FROM
ASIA'S COLLAPSING CURRENCY AND STOCK MARKETS ADDED TO THE DOWNWARD PRESSURE ON
TREASURY YIELDS. ASIA'S DEFLATION WILL MAKE IT HARDER FOR U.S. BUSINESSES TO
RAISE PRICES, AND WEAKENING EASTERN ECONOMIES WILL LIMIT U.S. ECONOMIC GROWTH.
BEYOND THE ECONOMIC IMPACT, THE U.S. BOND MARKET BENEFITTED AS INVESTORS SOUGHT
A SAFE HAVEN FROM ASIA'S TURMOIL.
U.S. TREASURY BOND PRICES CONTINUED TO RISE IN EARLY 1998. ALTHOUGH LONG-TERM
TREASURY YIELDS ARE AT THEIR LOWEST LEVELS SINCE THE 1970S, IN WIS'S VIEW, THE
BULL MARKET IN BONDS IS NOT OVER. REAL LONG-TERM YIELDS ARE STILL COMPARATIVELY
GENEROUS. THE DEFLATION EMANATING OUT OF ASIA HAS INCREASED THE CHANCES THAT THE
FRB'S NEXT MOVE WILL BE TO REDUCE INTEREST RATES, LOWERING THE FLOOR THAT KEPT
SHORT-TERM RATES UP LAST YEAR AND REMOVING AN IMPEDIMENT TO LOWER BOND YIELDS.
BUT THE DOWNTREND THAT COULD TAKE THE LONG TREASURY TO 5.5% AND CONCEIVABLY TO
NEAR 5.0% LATER THIS YEAR IS LIKELY TO BE IRREGULAR. A RETURN TO STABILITY IN
ASIAN MARKETS, FEARS OF A JAPANESE SELL-OFF OF U.S. TREASURY SECURITIES, OR,
LESS LIKELY, A RENEWAL OF INFLATION FEARS COULD ALL PROMPT PROFIT TAKING IN
BONDS AFTER LAST YEAR'S RALLY.
<TABLE>
<CAPTION>
1997 1997 1996 1995 1994 1993 1992 1991
Total Return Q4 Year Year Year Year Year Year Year
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
U.S. Treasury Money Mkt (WTMM) 1.2% 4.8% 4.8% 5.3% 3.6% 2.5% 3.3% n.a.
U.S. Treasury Near-Term Bonds (WNTB) 1.6% 5.9% 3.9% 11.9% -3.1% 8.0% 6.3% 13.1%
U.S. Treasury Bonds (WUSTB) 3.5% 9.1% -1.2% 28.2% -8.7% 15.9% 7.1% 17.6%
Total Return Bonds (WTRB) 3.4% 9.3% 0.9% 22.0% -6.6% 11.0% 7.1% 15.4%
Current Income (WCIF)
Standard Shares 2.0% 8.6% 4.3% 17.5% -3.3% 6.6% 6.7% 15.3%
Institutional Shares 2.2% 4.4% - - - - - -
</TABLE>
<PAGE>
WRIGHT U.S. TREASURY MONEY MARKET FUND
The Wright U.S. Treasury Money Market Fund (WTMM) earned a total investment
return of 1.2% in the fourth quarter of 1997, slightly below the 1.3% earned by
both 90-day T-bills and the average U.S. Treasury money market fund. For all of
1997, the WTMM earned 4.8% compared to 5.1% for T-bills and 4.9% for the average
Treasury money market fund. Partly due to Fed tightening in March, the
coupon-equivalent yield on 90-day Treasury bills rose about 15 basis points
during 1997 to 5.3%. In 1998, with Asia's problems in the picture, rates were
down by at least this much during the first two weeks of January. Moderating
economic growth, low inflation and unsettled global financial markets have
reduced the chances that the Fed will increase interest rates any time soon.
Interest rate cuts are even possible, if not yet likely. WIS expects that 90-day
Treasury bill rates will edge down to about 5.0% and maybe even lower during
1998.
WRIGHT U.S. TREASURY NEAR TERM FUND
In the fourth quarter of 1997, the Wright U.S. Treasury Near-Term Fund (WNTB)
posted a total investment return of 1.6%, compared to 1.3% earned on 90-day
Treasury bills for the same period. The WNTB's maturity held at about two years
(duration 1.8 years) in the quarter; Treasury yields in this maturity range
declined about 15 basis points for 1997's final three months (and another 30
basis points in the first half of January 1998).
For all of 1997, the WNTB returned 5.9% versus 5.1% for 90-day Treasury bills.
Over the last five years, WNTB's average annual return of 5.2% topped the 4.6%
recorded by T-Bills. The WNTB ended 1997 with a yield to maturity averaging
5.6%; it was invested in U.S.
Treasury securities (97%) and in agency issues (3%).
WRIGHT U.S. TREASURY FUND
The Wright U.S. Treasury Fund (WUSTB) earned a total investment return of 3.5%
in the fourth quarter of 1997, matching its third-quarter return. The WUSTB's
fourth-quarter gain, which reflected a 35 basis point drop in T-bond yields in
its eight-year maturity range, topped the Lipper fixed-income fund average
return of 2.0% and the Lehman Brothers government bond composite return of 3.3%
for the period. A strong recovery after a first-quarter decline gave the WUSTB a
9.1% return for the year compared to 8.6% for the Lipper average bond fund.
The WUSTB's 7.9% annual rate of return over the past five years tops the Lipper
average's 6.8%. At the end of 1997, the WUSTB fund's average yield to maturity
was 5.8%, down from 6.2% three months earlier; its duration was 6.1 years, up
from 5.9 at September 30.
WRIGHT TOTAL RETURN BOND FUND
For the fourth quarter of 1997, the Wright Total Return Bond Fund (WTRB)
returned 3.4%, topping the Lipper Fixed Income Fund average's 2.0% and the 3.2%
return indicated by the Lehman Brothers government/corporate composite. With
solid gains for the final three quarters of 1997, the WTRB returned 9.3% for the
full year, compared to 8.6% for the Lipper average.
At the end of 1997, the maturity of the WTRB was 8.8 years (duration 6.2 years),
up from 8.0 years (5.9 years) three months earlier. At year end, the WTRB had a
yield to maturity of 6.0% During the fourth quarter, WTRB's holdings shifted
from 100% U.S. Treasury bonds to 70% U.S. Treasuries, 22% Corporates, 6%
government agency issues and 2% Ginnie Mae mortgage securities.
<PAGE>
WRIGHT CURRENT INCOME FUND
The Wright Current Income Fund (WCIF) is invested in Ginnie Maes, which are
mortgage-based securities backed by the U.S. government. In the fourth quarter
of 1997, the WCIF had a total return of 2.0%, compared to 2.3% for the
Morningstar average of government backed mortgage funds. During the quarter,
declining mortgage rates resulted in increased mortgage prepayments, which
negatively affected performance of Ginnie Mae securities. The risk of heavy
prepayments continued in early 1998.
For all of 1997, the WCIF returned 8.6% compared to 8.5% for the Morningstar
average. The WCIF fund, which pays a dividend monthly and is suited for
income-oriented investors, had an indicated annual yield of 6.2% at year end;
that topped the rate on cash-equivalent securities and was roughly triple the
rate of inflation.
-------------------------------
U.S. SECURITIES MARKETS
The Dow Jones Industrial Average chart shows the point changes in the average
which consists of 30 major NYSE industrial companies and is a price-weighted
arithmetic average, with the divisor adjusted for stock splits. The yield
chart shows the basis point changes in the U.S. Treasury bond which is the
benchmark U.S. Treasury bond with a maturity of 30 years.
The following plotting points are used for comparison in the mountain charts.
Date Dow Jones U.S. 30 Year
Industrial Average Treasury Bond Yield
12/31/89 2753.20 7.98%
12/31/90 2633.66 8.25%
12/31/91 3168.83 7.40%
12/31/92 3301.11 7.40%
12/31/93 3754.09 6.35%
12/31/94 3834.44 7.88%
12/31/95 5117.12 5.95%
12/31/96 6448.27 6.64%
12/31/97 7908.25 5.92%
- --------------------------------------------------------------------------------
<PAGE>
Important
Past performance is not predictive of future performance. The Total
Investment Return is the percent 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. For comparison with other
averages, the investment results are shown from the first month-end
(indicated in the following charts by an *) since the Fund's inception.
Lipper Growth Fund is an average of 944 equity growth funds. NYSE is the
average of all the equities on the New York Stock Exchange. Value Line Stock
Index is a broad equity index compiled by Value Line. FT World ex U.S. Index
refers to the FT/S&P Actuaries World excluding the United States index of
3861 equity securities compiled by The Financial Times Limited, Goldman,
Sachs & Co., and Standard & Poor's in conjunction with the Institute of
Actuaries & the Faculty of Actuaries. Lipper Fixed Income Funds is the
average of 1,816 fixed income funds. Morningstar Government (1-5) is an
average of 114 general government funds with average maturities of one to
five years. For comparison with other averages, the investment results are
shown from the first month-end since the Fund's inception.
WRIGHT MANAGED EQUITY TRUST
WRIGHT SELECTED BLUE CHIP EQUITIES FUND
Growth of $10,000 invested 12/31/87 through 12/31/97
Annual Total Return
-----------------------------------------
Lst 1 Yr Lst 5 Yrs Lst 10 Yrs
Wright Selected Blue Chip +32.7% +15.1% +15.4%
Lipper Growth Funds +25.1% +16.1% +15.4%
NYSE +32.9% +19.4% +17.5%
The cumulative total return of a U.S. $10,000 investment in the
WRIGHT SELECTED BLUE CHIP EQUITIES FUND on 12/31/87 would have grown to
$42,017 by December 31, 1997.
The following plotting points are used for comparison
in the total investment return mountain chart.
Date Wright Selected Lipper NYSE
Blue Chip Equities Fund Growth Funds Index
12/31/87 $10,000 $10,000 $10,000
12/31/88 $12,131 $11,403 $11,732
12/31/89 $15,111 $14,316 $15,167
12/31/90 $14,612 $13,531 $14,588
12/31/91 $19,870 $18,401 $19,175
12/31/92 $20,807 $19,835 $20,716
12/31/93 $21,236 $21,939 $23,000
12/31/94 $20,489 $21,467 $22,973
12/31/95 $26,704 $28,077 $30,984
12/31/96 $31,664 $33,476 $37,774
12/31/97 $42,017 $41,866 $50,199
- --------------------------------------------------------------------------------
WRIGHT MANAGED EQUITY TRUST
WRIGHT JUNIOR BLUE CHIP EQUITIES FUND
Growth of $10,000 invested 12/31/87 through 12/31/97
Annual Total Return
-----------------------------------------
Lst 1 Yr Lst 5 Yrs Lst 10 Yrs
Wright Junior Blue Chip Fund +28.9% +13.9% +12.4%
Value Line Stock Index +24.5% +14.9% +12.3%
NYSE +32.9% +19.4% +17.5%
The cumulative total return of a U.S. $10,000 investment in the
WRIGHT JUNIOR BLUE CHIP EQUITIES FUND on 12/31/87 would have grown to $32,286
by December 31, 1997.
The following plotting points are used for comparison in the total investment
return mountain chart.
Date Wright Junior Value Line NYSE
Blue Chip Equities Fund Stock Index Index
12/31/87 $10,000 $10,000 $10,000
12/31/88 $11,521 $11,912 $11,732
12/31/89 $13,319 $13,686 $15,167
12/31/90 $11,907 $10,818 $14,588
12/31/91 $16,310 $14,305 $19,175
12/31/92 $16,845 $15,880 $20,716
12/31/93 $18,180 $18,185 $23,000
12/31/94 $17,680 $17,713 $22,973
12/31/95 $21,307 $21,845 $30,984
12/31/96 $25,042 $25,566 $37,774
12/31/97 $32,286 $31,829 $50,199
- --------------------------------------------------------------------------------
WRIGHT MANAGED EQUITY TRUST
WRIGHT MAJOR BLUE CHIP EQUITIES FUND
Growth of $10,000 invested 12/31/87 through 12/31/97
Annual Total Return
----------------------------------------
Lst 1 Yr Lst 5 Yrs Lst 10 Yrs
Wright Major Blue Chip Equities Fund +33.9% +15.3% +15.6%
Lipper Growth Funds +25.1% +16.1% +15.4%
NYSE +32.9% +19.4% +17.5%
The cumulative total return of a U.S. $10,000 investment in the
WRIGHT MAJOR BLUE CHIP EQUITIES FUND on 12/31/87 would have grown to $42,584
by December 31, 1997.
The following plotting points are used for comparison in the total investment
return mountain chart.
Date Wright Major Blue Lipper Equity NYSE
Chip Equities Fund Growth Funds Index
12/31/87 $10,000 $10,000 $10,000
12/31/88 $11,666 $11,403 $11,732
12/31/89 $14,351 $14,316 $15,167
12/31/90 $13,937 $13,531 $14,588
12/31/91 $19,358 $18,401 $19,175
12/31/92 $20,911 $19,835 $20,716
12/31/93 $21,120 $21,939 $23,000
12/31/94 $20,966 $21,467 $22,973
12/31/95 $27,043 $28,077 $30,984
12/31/96 $31,812 $33,476 $37,774
12/31/97 $42,584 $41,866 $50,199
- --------------------------------------------------------------------------------
<PAGE>
WRIGHT MANAGED EQUITY TRUST
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND - STANDARD SHARES
Growth of $10,000 invested 9/30/89* through 12/31/97
Annual Total Return
--------------------------------------------
Lst 1 Yr Lst 5 Yrs Since Incept*
Wright Int'l Blue Chip Equities Fund +1.5% +11.9% +8.1%
FT World Ex U.S. Index +0.8% +11.2% +3.7%
The cumulative total return of a U.S. $10,000 investment in the
WRIGHT INT'L BLUE CHIP EQUITIES FUND on 9/30/89 would have grown to $18,983
by December 31, 1997.
The following plotting points are used for comparison
in the total investment return mountain chart.
Date Wright Int'l Blue Chip FT World Ex U.S.
Equities Fund Index
09/30/89 $10,000 $10,000
12/31/89 $10,312 $10,490
12/31/90 $9,599 $8,064
12/31/91 $11,251 $9,138
12/31/92 $10,807 $7,944
12/31/93 $13,858 $10,507
12/31/94 $13,631 $11,386
12/31/95 $15,486 $12,575
12/31/96 $18,696 $13,393
12/31/97 $18,983 $13,500
- --------------------------------------------------------------------------------
WRIGHT MANAGED EQUITY TRUST
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND - INSTITUTIONAL SHARES
Growth of $10,000 invested 7/31/97* through 12/31/97
Total Return
---------------
Since Incept*
Wright Int'l Blue Chip Equities Fund -5.0%
FT World Ex U.S. Index -11.0%
The cumulative total return of a U.S. $10,000 investment in the
WRIGHT INT'L BLUE CHIP EQUITIES FUND on 7/31/97 would have declined to $9,495
by December 31, 1997.
The following plotting points are used for comparison
in the total investment return mountain chart.
Date Wright Int'l Blue Chip FT World Ex U.S.
Equities Fund Index
07/31/97 $10,000 $10,000
12/31/97 $9,495 $8,903
- --------------------------------------------------------------------------------
WRIGHT MANAGED INCOME TRUST
WRIGHT U.S. TREASURY NEAR TERM FUND
Growth of $10,000 invested 12/31/87 through 12/31/97
Annual Total Return
-----------------------------
Lst 1 Yr Lst 5 Yrs Lst 10 Yrs
Wright U.S. Treasury Near Term Fund +5.9% +5.2% +7.0%
Lehman Gov't/Corp Index +9.8% +7.6% +9.1%
Morningstar Gov't (1-5 Yrs) Funds +6.7% +5.0% +6.9%
The cumulative total return of a U.S. $10,000 investment in the
WRIGHT U.S.TREASURY NEAR TERM FUND on 12/31/87 would have grown to $19,710
by December 31, 1997.
The following plotting points are used for comparison in the total investment
return mountain chart.
Date Wright U.S. Lehman Gov't/Corp Morningstar Gov't
Treasury Near Term Index (1-5 Yrs) FundS
Fund
12/31/87 $10,000 $10,000 $10,000
12/31/88 $10,575 $10,758 $10,663
12/31/89 $11,756 $12,290 $11,815
12/31/90 $12,724 $13,307 $12,831
12/31/91 $14,388 $15,453 $14,513
12/31/92 $15,288 $16,625 $15,320
12/31/93 $16,504 $18,459 $16,257
12/31/94 $15,993 $17,811 $15,924
12/31/95 $17,902 $21,238 $17,737
12/31/96 $18,607 $21,855 $18,308
12/31/97 $19,710 $23,988 $19,540
- --------------------------------------------------------------------------------
WRIGHT MANAGED INCOME TRUST
WRIGHT U.S. TREASURY FUND
Growth of $10,000 invested 12/31/87 through 12/31/97
Annual Total Return
-------------------------------------------
Lst 1 Yr Lst 5 Yrs Lst 10 Yrs
Wright U.S. Treasury Fund +9.1% +7.9% +9.4%
Lehman Gov't/Corp Index +9.8% +7.6% +9.1%
Lipper Fixed Income Funds +8.7% +6.8% +8.1%
The cumulative total return of a U.S. $10,000 investment in the
WRIGHT U.S. TREASURY FUND on 12/31/87 would have grown to $24,481 by
December 31, 1997.
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
12/31/87 $10,000 $10,000 $10,000
12/31/88 $10,760 $10,758 $10,791
12/31/89 $12,510 $12,290 $11,808
12/31/90 $13,301 $13,307 $12,311
12/31/91 $15,637 $15,453 $14,548
12/31/92 $16,743 $16,625 $15,693
12/31/93 $19,405 $18,459 $17,210
12/31/94 $17,732 $17,811 $16,646
12/31/95 $22,729 $21,238 $19,179
12/31/96 $22,442 $21,855 $20,079
12/31/97 $24,481 $23,988 $21,816
- --------------------------------------------------------------------------------
<PAGE>
WRIGHT MANAGED INCOME TRUST
WRIGHT TOTAL RETURN BOND FUND
Growth of $10,000 invested 12/31/87 through 12/31/97
Annual Total Return
-----------------------------------------
Lst 1 Yr Lst 5 Yrs Lst 10 Yrs
Wright Total Return Bond Fund +9.2% +6.9% +8.3%
Lehman Gov't/Corp Index +9.8% +7.6% +9.1%
Lipper Fixed Income Funds +8.7% +6.8% +8.1%
The cumulative total return of a U.S. $10,000 investment in the
WRIGHT TOTAL RETURN BOND FUND on 12/31/87 would have grown to $22,113 by
December 31, 1997.
The following plotting points are used for comparison in the total investment
return mountain chart.
Date Wright Total Rturn Lehman Gov't/Corp Lipper Fixed
Bond Fund Index Income Funds
12/31/87 $10,000 $10,000 $10,000
12/31/88 $10,724 $10,758 $10,791
12/31/89 $12,181 $12,290 $11,808
12/31/90 $12,826 $13,307 $12,311
12/31/91 $14,799 $15,453 $14,548
12/31/92 $15,853 $16,625 $15,693
12/31/93 $17,601 $18,459 $17,210
12/31/94 $16,447 $17,811 $16,646
12/31/95 $20,061 $21,238 $19,179
12/31/96 $20,241 $21,855 $20,079
12/31/97 $22,113 $23,988 $21,816
- --------------------------------------------------------------------------------
WRIGHT MANAGED INCOME TRUST
WRIGHT CURRENT INCOME FUND - STANDARD SHARES
Growth of $10,000 invested 12/31/87 through 12/31/97
Annual Total Return
-------------------------------------------
Lst 1 Yr Lst 5 Yrs Lst 10 Yrs
Wright Current Income Fund +8.6% +6.5% +8.7%
Lehman Gov't/Corp Index +9.8% +7.6% +9.1%
Lehman Mtg-Backed index +9.8% +7.3% +9.5%
The cumulative total return of a U.S. $10,000 investment in the
WRIGHT CURRENT INCOME FUND on 12/31/87 would have grown to $23,014 by
December 31, 1997.
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
12/31/87 $10,000 $10,000 $10,000
12/31/88 $10,871 $10,758 $10,880
12/31/89 $12,408 $12,290 $12,587
12/31/90 $13,631 $13,307 $13,918
12/31/91 $15,718 $15,453 $16,151
12/31/92 $16,777 $16,625 $17,348
12/31/93 $17,882 $18,459 $18,489
12/31/94 $17,296 $17,811 $18,211
12/31/95 $20,316 $21,238 $21,317
12/31/96 $21,199 $21,855 $22,496
12/31/97 $23,014 $23,988 $24,696
- --------------------------------------------------------------------------------
WRIGHT MANAGED INCOME TRUST
WRIGHT CURRENT INCOME FUND - INSTITUTIONAL SHARES
Growth of $10,000 invested 7/31/97* through 12/31/97
Total Return
------------------
Since Incept*
Wright Current Income Fund +3.2%
Lehman Gov't/Corp Index +3.7%
Lehman Mtg-Backed index +3.6%
The cumulative total return of a U.S. $10,000 investment in the
WRIGHT CURRENT INCOME FUND on 7/31/97 would have grown to $10,323 by
December 31, 1997.
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
07/06/97 $10,000 $10,000 $10,000
12/31/97 $10,323 $10,365 $10,364
------------------------------------------------------------------------------
<PAGE>
DIVIDEND DISTRIBUTIONS
================================================================================
<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.96 17.73 2.040 0.116173 302.60 5,365.08 18.57% 9.77% 12.01% 12.76%
Jan.97 18.06 302.60 5,464.96 18.80% 10.69% 11.04% 12.82%
Feb.97 18.46 302.60 5,586.00 19.55% 10.99% 10.74% 12.93%
Mar.97 16.47 1.540 0.090855 330.09 5,436.58 14.83% 11.10% 10.42% 12.63%
Apr.97 17.03 330.09 5,621.43 17.27% 11.81% 11.17% 12.82%
May 97 18.21 330.09 6.010.94 22.77% 13.25% 11.94% 13.26%
Jun.97 18.76 0.040 0.002111 330.79 6,205.62 26.32% 14.56% 11.64% 13.43%
Jul.97 20.04 330.79 6,629.06 41.98% 15.04% 11.92% 13.86%
Aug.97 19.99 330.79 6,612.52 37.25% 15.18% 11.55% 13.76%
Sep.97 20.79 0.030 0.001458 331.27 6,887.18 37.25% 15.84% 12.29% 13.99%
Oct.97 19.97 331.27 6,615.54 30.42% 14.86% 14.76% 13.59%
Nov.97 20.72 331.27 6,863.99 27.94% 14.53% 15.98% 13.80%
Dec.97 19.20 2.225 0.119303 370.80 7,119.28 32.70% 15.09% 15.44% 13.99%
---------------------------------------------------------------------------------------------------------------------------
THE EQUITY TRUST -- WRIGHT JUNIOR BLUE CHIP EQUITIES FUND (WJBC)
1/15/85 $10.00 100.00 $1,000.00
Dec. 96 8.86 3.700 0.427252 361.54 3,203.20 17.53% 8.95% 9.22% 10.22%
Jan.97 9.00 361.54 3,253.86 18.51% 8.83% 8.11% 10.29%
Feb.97 9.16 361.54 3,311.71 17.92% 8.75% 7.64% 10.38%
Mar.97 8.96 0.025 0.002729 362.53 3,248.27 14.69% 9.00% 7.49% 10.13%
Apr.97 9.02 362.53 3,270.02 14.94% 9.90% 7.91% 10.12%
May 97 9.80 362.53 3,552.79 21.96% 11.42% 8.74% 10.79%
Jun.97 10.18 0.010 0.000993 362.89 3,694.22 27.54% 13.58% 8.70% 11.06%
Jul.97 10.65 362.88 3,864.70 42.77% 13.81% 8.75% 11.38%
Aug.97 10.76 362.88 3,904.61 37.81% 14.75% 8.57% 11.39%
Sep.97 11.66 0.005 0.000435 363.04 4,233.05 43.20% 16.56% 9.73% 12.03%
Oct 97 11.08 363.04 4,022.48 34.57% 15.16% 12.62% 11.50%
Nov.97 11.30 363.04 4,102.35 31.67% 14.15% 13.49% 11.59%
Dec.97 10.48 0.880 0.085437 394.06 4,129.72 28.92% 13.90% 12.43% 11.57%
- ------------------------------------------------------------------------------------------------------------------------------
THE EQUITY TRUST -- WRIGHT MAJOR BLUE CHIP EQUITIES FUND (WMBC)
7/22/85 $10.00 100.00 $1,000.00
Dec. 96 12.45 2.300 0.186840 342.36 4,262.34 17.63% 10.44% 12.38% 13.51%
Jan.97 12.88 342.36 4,409.60 19.52% 11.08% 11.47% 13.73%
Feb.97 13.12 342.36 4,491.72 19.52% 11.31% 11.05% 13.82%
Mar.97 10.68 2.050 0.185688 405.93 4,335.33 13.84% 11.12% 10.59% 13.37%
Apr.97 11.24 405.93 4,562.64 18.47% 12.25% 11.56% 13.76%
May 97 12.05 405.93 4,891.44 24.78% 13.87% 12.29% 14.33%
Jun.97 12.58 0.020 0.001566 406.57 5,114.66 31.14% 15.54% 12.17% 14.65%
Jul.97 13.67 406.57 5,557.82 50.27% 16.43% 12.62% 15.33%
Aug.97 13.23 406.57 5,378.93 40.30% 16.00% 11.91% 14.91%
Sep.97 13.88 0.020 0.001452 407.16 5,651.40 40.95% 16.76% 12.77% 15.26%
Oct.97 13.23 407.16 5,386.74 33.10% 15.22% 15.23% 14.70%
Nov.97 13.80 407.16 5,618.83 31.43% 15.17% 16.53% 14.99%
Dec.97 12.02 1.955 0.165818 474.68 5,705.61 33.86% 15.29% 15.59% 15.02%
- -------------------------------------------------------------------------------------------------------------------------------
<PAGE>
THE EQUITY TRUST -- WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC)
Standard Shares
9/14/89 $10.00 100.00 $1,000.00
Dec. 96 16.69 1.110 0.068434 113.48 1,893.98 20.73% 10.69% -- 9.00%
Jan.97 16.36 113.48 1,856.47 15.61% 10.07% -- 8.74%
Feb.97 16.59 113.48 1,882.57 15.85% 10.28% -- 8.85%
Mar.97 15.93 0.533 0.033670 117.30 1,868.54 11.56% 10.80% -- 8.64%
Apr.97 15.81 117.30 1,854.47 8.32% 9.89% -- 8.44%
May 97 16.48 117.30 1,933.06 11.59% 9.56% -- 8.92%
Jun.97 17.19 117.30 2,016.34 16.04% 10.83% -- 9.42%
Jul.97 17.27 117.30 2,025.72 18.98% 11.69% -- 9.38%
Aug.97 16.17 117.30 1,896.70 9.02% 9.98% -- 8.37%
Sep 97 17.22 117.30 2,019.86 13.68% 12.07% -- 9.13%
Oct.97 16.06 117.30 1,883.79 4.33% 11.49% -- 8.10%
Nov 97 16.14 117.30 1,893.18 1.63% 11.70% -- 8.08%
Dec.97 16.02 0.370 0.023359 120.04 1,922.99 1.54% 11.93% -- 8.20%
- -------------------------------------------------------------------------------------------------------------------------------
THE EQUITY TRUST -- WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC)
Institutional Shares
7/06/97 $10.00 100.00 $1,000.00
Jul. 97 9.86 100.00 986.00 -1.40%* -- -- --
Aug. 97 9.23 100.00 923.00 -7.70%* -- -- --
Sep. 97 9.83 100.00 983.00 -1.70%* -- -- --
Oct. 97 9.17 100.00 917.00 -8.30%* -- -- --
Nov. 97 9.22 100.00 922.00 -7.80%* -- -- --
Dec. 97 9.13 0.230 0.025471 102.55 936.25 -6.37%* -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
*: Investment return from the inception, July 7, 1997 to December 31, 1997.
</TABLE>
<PAGE>
THE INCOME TRUST -- WRIGHT U.S. TREASURY MONEY MARKET FUND (WTMM)
<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> <C>
Jan. 31 $0.003993 1,003.99 4.70% -- 4.70%
Feb. 29 0.003596 1,007.60 4.69% -- 4.70%
Mar. 31 0.003997 1,011.63 4.71% 4.73% 4.72%
Apr. 30 0.003918 1,015.59 4.77% 4.75% 4.74%
May 31 0.004028 1,019.68 4.74% 4.77% 4.76%
Jun. 30 0.003917 1,023.67 4.76% 4.79% 4.77%
Jul. 31 0.004049 1,027.82 4.77% 4.77% 4.79%
Aug. 31 0.004054 1,031.98 4.77% 4.79% 4.80%
Sep. 30 0.003906 1,036.01 4.75% 4.78% 4.82%
Oct. 31 0.004009 1,040.17 4.72% 4.77% 4.82%
Nov. 30 0.003890 1,044.21 4.73% 4.75% 4.83%
Dec. 31 0.004038 1,048.43 4.75% 4.75% 4.84%
----------
Total $0.047395
(a): Assumes reinvestment of monthly dividends.
</TABLE>
<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 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
12/96 10.24 0.050356 0.004918 281.416 2,881.70 3.91% 5.28% 6.65% 8.19%
1/97 10.23 0.050379 0.004925 282.802 2,893.06 3.53% 5.55% 6.59% 8.17%
2/97 10.21 0.045606 0.004467 284.065 2,900.31 4.39% 5.54% 6.57% 8.14%
3/97 10.14 0.049701 0.004901 285.457 2,894.54 4.36% 5.61% 6.60% 8.08%
4/97 10.17 0.047795 0.004700 286.799 2,916.75 5.25% 5.57% 6.89% 8.09%
5/97 10.18 0.044897 0.004418 288.066 2,932.51 5.60% 5.40% 6.97% 8.08%
6/97 10.20 0.049211 0.004825 289.456 2,952.45 5.70% 5.26% 6.91% 8.08%
7/97 10.26 0.050602 0.004932 290.883 2,984.46 6.43% 5.07% 7.02% 8.11%
8/97 10.21 0.050653 0.004961 292.326 2,984.65 6.21% 4.89% 7.07% 8.06%
9/97 10.23 0.050478 0.004934 293.769 3,005.26 6.02% 4.77% 7.29% 8.07%
10/97 10.25 0.051196 0.004995 295.236 3,026.17 5.62% 5.18% 7.08% 8.07%
11/97 10.22 0.048943 0.004789 296.650 3,031.76 5.01% 5.32% 7.03% 8.03%
12/97 10.24 0.049720 0.004855 298.090 3,052.45 5.93% 5.21% 7.02% 8.04%
---------
Total $0.589253
- ---------------------------------------------------------------------------------------------------------------------------------
THE INCOME TRUST -- WRIGHT U.S. TREASURY FUND (WUSTB)
7/25/83 $10.00 100.000 $1,000.00
12/96 13.58 0.234859 0.017294 281.677 3,825.17 -1.23% 7.49% 8.09% 10.50%
1/97 13.52 0.063075 0.004666 282.991 3,826.04 -1.13% 8.23% 7.96% 10.43%
2/97 13.45 0.056319 0.004190 284.177 3,822.18 3.40% 8.05% 7.81% 10.36%
3/97 13.08 0.172383 0.013168 287.919 3,765.98 3.33% 7.99% 7.85% 10.18%
4/97 13.22 0.058865 0.004453 289.201 3,823.24 6.17% 8.31% 8.50% 10.23%
5/97 13.27 0.053364 0.004021 290.364 3,853.13 7.47% 7.95% 8.68% 10.23%
6/97 13.37 0.058092 0.004345 291.626 3,899.03 7.21% 7.91% 8.69% 10.26%
7/97 13.74 0.059582 0.004336 292.890 4,024.31 10.55% 7.77% 9.19% 10.44%
8/97 13.49 0.059104 0.004381 294.173 3,968.40 9.48% 7.28% 9.22% 10.27%
9/97 13.65 0.061950 0.004538 295.509 4,033.69 9.21% 7.31% 9.82% 10.33%
10/97 13.86 0.060192 0.004343 296.792 4,113.54 8.36% 8.17% 9.38% 10.42%
11/97 13.85 0.053839 0.003887 297.946 4,126.55 6.22% 8.19% 9.41% 10.38%
12/97 13.95 0.055733 0.003995 299.136 4,172.95 9.09% 7.90% 9.37% 10.40%
---------
Total $0.812498
- -------------------------------------------------------------------------------------------------------------------------------
THE INCOME TRUST -- WRIGHT TOTAL RETURN BOND FUND (WTRB)
7/25/83 $10.00 100.000 $1,000.00
12/96 12.50 0.059626 0.004770 280.396 3,504.95 0.87% 6.46% 6.97% 9.78%
1/97 12.44 0.058615 0.004712 281.718 3,504.57 0.49% 6.86% 6.78% 9.72%
2/97 12.37 0.053439 0.004320 282.935 3,499.90 3.84% 6.76% 6.70% 9.65%
3/97 12.13 0.058576 0.004807 284.295 3,448.50 3.62% 6.58% 6.66% 9.47%
4/97 12.27 0.055727 0.004542 285.586 3,504.14 6.42% 6.79% 7.30% 9.54%
5/97 12.32 0.057371 0.004657 286.916 3,534.80 7.90% 6.57% 7.52% 9.54%
6/97 12.40 0.055875 0.004506 288.209 3,573.79 7.43% 6.45% 7.50% 9.57%
7/97 12.76 0.057632 0.004517 289.510 3,694.15 11.06% 6.54% 7.90% 9.77%
8/97 12.52 0.057649 0.004605 290.843 3,641.36 9.75% 6.01% 7.94% 9.60%
9/97 12.67 0.056432 0.004454 292.139 3,701.40 9.39% 6.03% 8.59% 9.67%
10/97 12.87 0.058300 0.004530 293.462 3,776.86 8.68% 6.84% 8.46% 9.76%
11/97 12.85 0.057235 0.004454 294.769 3,787.79 6.54% 7.02% 8.29% 9.72%
12/97 12.93 0.059800 0.004625 296.133 3,829.00 9.25% 6.88% 8.26% 9.75%
---------
Total $0.686651
- ---------------------------------------------------------------------------------------------------------------------------------
<PAGE>
THE INCOME TRUST -- WRIGHT CURRENT INCOME FUND (WCIF) - Standard Shares
4/14/87 $10.00 100.000 $1,000.00
12/96 10.43 0.057090 0.005474 211.500 2,205.95 4.31% 6.17% -- 8.48%
1/97 10.43 0.057396 0.005502 212.664 2,218.08 4.27% 6.73% -- 8.47%
2/97 10.42 0.053324 0.005117 213.752 2,227.30 6.03% 6.63% -- 8.44%
3/97 10.23 0.058897 0.005729 214.977 2,199.21 5.13% 6.53% -- 8.23%
4/97 10.33 0.053487 0.005176 216.089 2,232.20 7.06% 6.61% 8.37% 8.32%
5/97 10.38 0.051743 0.004985 217.167 2,254.19 8.80% 6.37% 8.49% 8.35%
6/97 10.45 0.056802 0.005436 218.347 2,281.73 8.64% 6.35% 8.49% 8.41%
7/97 10.58 0.055676 0.005262 219.496 2,322.27 10.09% 6.38% 8.65% 8.53%
8/97 10.49 0.055069 0.005250 220.648 2,314.60 9.87% 6.09% 8.69% 8.42%
9/97 10.58 0.055600 0.005255 221.808 2,346.73 9.49% 6.20% 9.20% 8.49%
10/97 10.63 0.054863 0.005161 222.953 2,369.99 8.30% 6.68% 8.88% 8.52%
11/97 10.59 0.055376 0.005229 224.118 2,373.41 6.85% 6.66% 8.77% 8.47%
12/97 10.63 0.055488 0.005220 225.288 2,394.82 8.56% 6.53% 8.69% 8.49%
---------
Total $0.663721
- --------------------------------------------------------------------------------------------------------------------------------
THE INCOME TRUST -- WRIGHT CURRENT INCOME FUND (WCIF) - Institutional Shares
7/06/97 $10.00 100.000 $1,000.00
7/97 10.07 0.043598 0.004330 100.433 1,011.36 1.14%*
8/97 9.98 0.053782 0.005389 100.974 1,007.72 0.77%*
9/97 10.06 0.053374 0.005306 101.510 1,021.19 2.12%*
10/97 10.11 0.053864 0.005328 102.051 1,031.73 3.17%*
11/97 10.08 0.054540 0.005411 102.603 1,034.24 3.42%*
12/97 10.12 0.055263 0.005461 103.163 1,044.01 4.40%*
---------
Total $0.314422
- -----------------------------------------------------------------------------------------------------------------------------
*: Investment return from the inception, July 7, 1997 to December 31, 1997.
</TABLE>
<PAGE>
WRIGHT MANAGED EQUITY TRUST
STATEMENTS OF ASSETS AND LIABILITIES
December 31, 1997
================================================================================
<TABLE>
<CAPTION>
Wright Selected Wright Junior Wright Major
Blue Chip Blue Chip Blue Chip
Equities Fund Equities Fund Equities Fund+
(WBC) (WJBC) (WMBC)
- ------------------------------------------------------------------------------------------------------------------------------
ASSETS:
Investments --
<S> <C> <C> <C>
Identified cost............................... $ - $ - $ 20,954,041
Unrealized appreciation (depreciation)........ - - 6,238,178
Investments in Portfolio, at value (identified cost,
$183,542,015 and $30,002,021, respectively,
for WBC and WJBC)........................... 259,492,119 33,489,338 -
------------ ------------ ------------
Total investments, at value (Note 1A)......... $ 259,492,119 $ 33,489,338 $ 27,192,219
Cash.......................................... - - 2,462
Receivable for Fund shares sold............... 18,770 18,417 38,413
Receivable for investments sold............... - - 442,899
Dividend and interest receivable.............. - - 40,076
Receivable from Investment Adviser............ - - 26,581
------------ ------------ ------------
Total Assets............................. $ 259,510,889 $ 33,507,755 $ 27,742,650
------------ ------------ ------------
LIABILITIES:
Payable for Fund shares reacquired............ $ 91,925 $ 6,900 $ -
Trustee fees payable.......................... 600 600 600
Distribution fee payable...................... - 7,133 10,882
Management fee payable........................ - - 4,500
Accrued expenses and other liabilities........ 7,496 3,388 5,922
------------ ------------ ------------
Total Liabilities......................... $ 100,021 $ 18,021 $ 21,904
------------ ------------ ------------
NET ASSETS....................................... $ 259,410,868 $ 33,489,734 $ 27,720,746
============= ============= =============
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........................ $181,656,740 $ 30,138,731 $ 21,259,654
Accumulated undistributed net realized gain
on investments and foreign currency (computed
on the basis of identified cost)............ 876,137 248,944 417,963
Unrealized appreciation of investments and trans-
lation of assets and liabilities in foreign currency
(computed on the basis of identified cost).. 75,950,104 3,487,317 6,238,178
Undistributed (distributions in excess of) net
investment income........................... 927,887 (385,258) (195,049)
------------ ------------ ------------
Net assets applicable to outstanding shares. $259,410,868 $ 33,489,734 $ 27,720,746
============= ============= =============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING................................. 13,511,126 3,195,403 2,305,856
============= ============= =============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST...................... $19.20 $10.48 $12.02
============= ============= =============
+ The Wright Major Blue Chip Equities Fund does not invest in a corresponding
master portfolio.
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT MANAGED EQUITY TRUST
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1997
================================================================================
Wright International
Blue Chip
Equities Fund
(WIBC)
- -------------------------------------------------------------------------------
ASSETS:
Investments --
Investment in Portfolio, at value
(identified cost, $204,018,416) (Note 1A)................. $ 257,046,609
Receivable for Fund shares sold.............................. 828,779
------------
Total Assets............................................ $ 257,875,388
-------------
LIABILITIES:
Payable for Fund shares reacquired.......................... $ 75,032
Trustee fees payable........................................ 600
Accrued expenses and other liabilities...................... 7,708
------------
Total Liabilities....................................... $ 83,340
------------
NET ASSETS.................................................... $ 257,792,048
=============
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..................................... $ 205,665,223
Accumulated undistributed net realized gain on
investments and foreign currency (computed
on the basis of identified cost)......................... 1,163,776
Unrealized appreciation of investments and trans-
lation of assets and liabilities in foreign currency
(computed on the basis of identified cost)............... 53,028,193
Distributions in excess of net investment income........... (2,065,144)
------------
Net assets applicable to outstanding shares............. $ 257,792,048
=============
Computation of net asset value, offering
and redemption price per share:
Standard shares:
Net assets............................................ $ 212,697,647
------------
Shares of beneficial interest outstanding............. 13,273,865
------------
Net asset value, offering price, and redemption
price per share of beneficial interest............... $ 16.02
------------
Institutional shares:
Net assets............................................ $ 45,094,401
------------
Shares of beneficial interest outstanding.............. 4,936,568
------------
Net asset value, offering price, and redemption
price per share of beneficial interest................ $ 9.13
------------
<PAGE>
WRIGHT MANAGED EQUITY TRUST
STATEMENTS OF OPERATIONS
For the Year Ended December 31, 1997
================================================================================
<TABLE>
<CAPTION>
Wright Selected Wright Junior Wright Major Wright International
Blue Chip Blue Chip Blue Chip Blue Chip
Equities Fund Equities Fund Equities Fund+ Equities Fund
(WBC) (WJBC) (WMBC) (WIBC)
- ---------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1C):
Income --
<S> <C> <C> <C> <C>
Dividend income................................. $ 1,344,062 $ 67,667 $ 419,351 $ 2,501,667
Interest income................................. 61,184 6,140 28,622 118,994
Less: Foreign taxes............................. - - - (280,384)
Dividend income allocated from Portfolio........ 2,639,245 166,665 - 3,695,020
Interest income allocated from Portfolio........ 179,063 29,900 - 206,116
Less: Foreign taxes from Portfolio.............. - - - (441,511)
Expenses allocated from Portfolio............... (1,069,986) (61,112) - (1,685,691)
------------ ------------ ------------ ------------
Investment income.............................. $ 3,153,568 $ 209,260 $ 447,973 $ 4,114,211
------------ ------------ ------------ ------------
Expenses --
Investment Adviser fee (Note 2)................. $ 437,112 $ 24,483 $ 118,332 $ 716,225
Administrator fee (Note 2)...................... 279,719 35,914 51,841 301,235
Compensation of Trustees not affiliated with the
Investment Adviser or Administrator............ 3,009 2,964 2,973 3,071
Custodian fee (Note 1D)......................... 42,494 13,819 51,108 169,044
Distribution expenses-Standard shares (Note 3).. 531,616 42,079 60,491 589,982
Transfer and dividend disbursing agent fees-
Standard shares ............................. 54,403 8,723 8,994 78,193
Transfer and dividend disbursing agent fees-
Institutional shares......................... - - - 1,268
Printing........................................ 5,550 3,545 1,756 11,676
Audit services.................................. 29,962 24,962 26,162 29,962
Legal services.................................. 2,651 3,778 32,675 2,923
Registration costs.............................. 19,069 13,576 14,610 20,619
Miscellaneous................................... 16,314 9,797 2,381 26,131
------------ ------------ ------------ ------------
Total expenses................................. $ 1,421,899 $ 183,640 $ 371,323 $ 1,950,329
------------ ------------ ------------ ------------
Deduct --
Reduction of Investment Adviser fee (Note 2).... $ - $ 21,246 $ 50,081 $ -
Reduction of distribution expenses by
Principal Underwriter (Note 2)................ - 13,700 41,100 -
Reduction of Custodian fee (Note 1D)............ - 3,334 7,962 -
------------ ------------ ------------ ------------
Total deductions............................... $ - $ 38,280 $ 99,143 $ -
------------ ------------ ------------ ------------
Net expenses................................. $ 1,421,899 $ 145,360 $ 272,180 $ 1,950,329
------------ ------------ ------------ ------------
Net investment income...................... $ 1,731,669 $ 63,900 $ 175,793 $ 2,163,882
------------ ------------ ------------ ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investment and foreign currency
transactions (identified cost basis)............ $ 8,148,212 $ 1,058,208 $ 5,086,262 $ 232,644
Net realized gain on investment and foreign currency
transactions from Portfolio (identified cost basis) 19,731,211 1,729,605 - 14,916,066
------------ ------------ ------------ ------------
Net realized gain on investments................. $ 27,879,423 $ 2,787,813 $ 5,086,262 $ 15,148,710
------------ ------------ ------------ ------------
Change in unrealized appreciation (depreciation)
of investments and translation of assets and
liabilities in foreign currencies.............. $ - $ - $ 2,093,990 $ -
Change in unrealized appreciation (depreciation)
of investments and translation of assets and
liabilities in foreign currencies from Portfolio 35,733,719 547,419 - (12,233,865)
------------ ------------ ------------ ------------
Net change in unrealized appreciation (depreciation)
of investments and translation of assets and
liabilities in foreign currencies.............. $ 35,733,719 $ 547,419 $ 2,093,990 $ (12,233,865)
------------ ------------ ------------ ------------
Net realized and unrealized gain................. $ 63,613,142 $ 3,335,232 $ 7,180,252 $ 2,914,845
------------ ------------ ------------ ------------
Net increase in net assets from operations..... $ 65,344,811 $ 3,399,132 $ 7,356,045 $ 5,078,727
============= ============= ============= =============
+ The Wright Major Blue Chip Equities Fund does not invest in a corresponding
master portfolio.
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT MANAGED EQUITY TRUST
STATEMENTS OF CHANGES IN NET ASSETS
================================================================================
<TABLE>
<CAPTION>
Wright Selected Wright Junior
Blue Chip Blue Chip
Equities Fund Equities Fund
(WBC) (WJBC)
Year Ended Dec. 31 Year Ended Dec. 31
-------------------------------------------------------
1997 1996 1997 1996
- --------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From operations --
<S> <C> <C> <C> <C>
Net investment income.................................. $ 1,731,669 $ 2,631,529 $ 63,900 $ 138,013
Net realized gain on investments....................... 27,879,423 39,254,389 2,787,813 4,475,140
Change in unrealized appreciation of investments....... 35,733,719 (2,677,293) 547,419 (1,773,925)
------------ ------------ ------------ ------------
Net increase in net assets
resulting from operations......................... $ 65,344,811 $ 39,208,625 $ 3,399,132 $ 2,839,228
------------ ------------ ------------ ------------
Undistributed net investment income included in
price of shares sold and redeemed (Note 1F)............ $ (21,080) $ (218,349) $ -- $ (118,531)
------------ ------------ ------------ ------------
Distributions to shareholders (Note 1G) --
From net investment income............................. $ (1,728,176) $ (2,485,082) $ (56,986) $ (156,925)
From net realized gain................................. (43,658,676) (21,491,146) (2,548,114) (4,391,022)
------------ ------------ ------------ ------------
Total distributions.................................. $(45,386,852) $ (23,976,228) $ (2,605,100) $ (4,547,947)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets from Fund
share transactions (Note 4)............................ $ 31,308,408 $ (24,436,411) $ 18,667,002 $(10,137,508)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets.................... $ 51,245,287 $ (9,422,363) $ 19,461,034 $(11,964,758)
NET ASSETS:
At beginning of year..................................... 208,165,581 217,587,944 14,028,700 25,993,458
------------ ------------ ------------ ------------
At end of year........................................... $259,410,868 $ 208,165,581 $ 33,489,734 $ 14,028,700
============= ============= ============= =============
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF)
NET INVESTMENT INCOME INCLUDED IN NET
ASSETS AT END OF PERIOD.................................. $ 927,887 $ 945,474 $ (385,258) $ (385,258)
============= ============= ============= =============
See notes to fianacial statements
</TABLE>
<PAGE>
WRIGHT MANAGED EQUITY TRUST
STATEMENTS OF CHANGES IN NET ASSETS
================================================================================
<TABLE>
<CAPTION>
Wright Major Wright International
Blue Chip Blue Chip
Equities Fund+ Equities Fund
(WMBC) (WIBC)
Year Ended Dec. 31 Year Ended Dec. 31
------------------------------------------------------
1997 1996 1997 1996
- ------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From operations --
<S> <C> <C> <C> <C>
Net investment income.................................. $ 175,793 $ 349,438 $ 2,163,882 $ 1,956,736
Net realized gain on investments....................... 5,086,262 11,025,665 15,148,710 19,574,426
Change in unrealized appreciation of investments....... 2,093,990 (5,101,936) (12,233,865) 24,303,355
------------ ------------ ------------ ------------
Net increase in net assets
resulting from operations......................... $ 7,356,045 $ 6,273,167 $ 5,078,727 $ 45,834,517
------------ ------------ ------------ ------------
Undistributed net investment income included in
price of shares sold and redeemed (Note 1F)............ $ - $ (43,460) $ 202,446 $ 23,205
------------ ------------ ------------ ------------
Distributions to shareholders (Note 1G) --
From net investment income - Standard shares........... $ (164,977) $ (342,817) $ (2,203,743) $ (1,527,735)
From net realized gain - Standard shares............... (7,725,348) (4,865,664) (11,765,818) (15,430,128)
From net realized gain - Institutional shares.......... - - (1,107,228) -
------------ ------------ ------------ ------------
Total distributions.................................. $ (7,890,325) $ (5,208,481) $(15,076,789) $ (16,957,863)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets from fund
share transactions -
Standard shares...................................... $ 2,439,911 $ (24,340,385) $(50,302,381) $ 2,656,534
Institutional shares................................. - - 49,157,706 -
------------ ------------ ------------ ------------
Net increase in net assets from Fund share transactions.. $ 2,439,911 $ (24,340,385) $ (1,144,675) $ 2,656,534
------------ ------------ ------------ ------------
Net increase (decrease) in net assets.................... $ 1,905,631 $ (23,319,159) $(10,940,291) $ 31,556,393
NET ASSETS:
At beginning of year..................................... 25,815,115 49,134,274 268,732,339 237,175,946
------------ ------------ ------------ ------------
At end of year........................................... $ 27,720,746 $ 25,815,115 $257,792,048 $268,732,339
============= ============= ============= =============
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF)
NET INVESTMENT INCOME INCLUDED IN NET
ASSETS AT END OF PERIOD.................................. $ (195,049) $ (205,865) $ (2,065,144) $ 924,400
============= ============= ============= =============
+ The Wright Major Blue Chip Equities Fund does not invest in a corresponding
master portfolio.
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT MANAGED EQUITY TRUST
WRIGHT SELECTED BLUE CHIP EQUITIES FUND
================================================================================
<TABLE>
<CAPTION>
Year Ended December 31,
-----------------------------------------------------------
FINANCIAL HIGHLIGHTS 1997 1996 1995 1994 1993
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......... $ 17.730 $ 16.830 $ 13.850 $ 14.920 $ 14.790
-------- -------- -------- -------- --------
Income (Loss) from Investment Operations:
Net investment income.................. $ 0.133 $ 0.204 $ 0.226 $ 0.233 $ 0.196
Net realized and unrealized gain (loss)
on investments....................... 5.172 2.886 3.904 (0.763) 0.104
-------- -------- -------- -------- --------
Total income (loss)
from investment operations....... $ 5.305 $ 3.090 $ 4.130 $ (0.530) $ 0.300
-------- -------- -------- -------- --------
Less Distributions:
From net investment income............. $ (0.145) $ (0.200) $ (0.200) $ (0.180) $ (0.170)
From net realized gain on investments.. (3.690) (1.990) (0.840) (0.360) --
In excess of net realized gain
on investments....................... -- -- (0.110) -- --
-------- -------- -------- -------- --------
Total distributions................ $ (3.835) $ (2.190) $ (1.150) $ (0.540) $ (0.170)
-------- -------- -------- -------- --------
Net asset value, end of year................ $ 19.200 $ 17.730 $ 16.830 $ 13.850 $ 14.920
========= ========= ========= ========= =========
Total Return (1)............................ 32.70% 18.57% 30.34% (3.52%) 2.06%
Ratios/Supplemental Data:
Net assets, end of period (000 omitted) $ 259,411 $ 208,166 $217,588 $186,016 $175,481
Ratio of expenses to average net assets 1.08%(4) 1.04% 1.04% 1.03% 1.03%
Ratio of net investment income to average
net assets........................... 0.75% 1.15% 1.44% 1.57% 1.28%
Portfolio turnover rate(3) ............ 10% 43% 44% 72% 28%
Average commission rate paid (2) ...... $ 0.0500 $ 0.0497 -- -- --
(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, the Fund is
required to disclose its average commission rate per share for security
trades on which commissions are charged. Amount for the year ended December
31, 1997 is for the period while the Fund was making investments directly in
securities. The average commission rate paid for the period since the Fund
transferred substantially all of its investable assets to the Portfolio is
shown in the Portfolio's financial statements which are included elsewhere
in this report.
(3) Portfolio turnover represents the rate of portfolio activity for the period
while the Fund was making investments directly in securities. The portfolio
turnover rate for the period since the Fund transferred substantially all of
its investable assets to the Portfolio is shown in the Portfolio's financial
statments which are included elsewhere in this report.
(4) Includes each Fund's share of its corresponding Portfolio's allocated
expenses.
See notes to fianacial statements
</TABLE>
<PAGE>
WRIGHT MANAGED EQUITY TRUST
WRIGHT JUNIOR BLUE CHIP EQUITIES FUND
================================================================================
<TABLE>
<CAPTION>
Year Ended December 31,
---------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1997 1996 1995 1994 1993
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......... $ 8.860 $ 10.850 $ 11.000 $ 11.950 $ 11.690
-------- -------- -------- -------- --------
Income (Loss) from Investment Operations:
Net investment income(1)............... $ 0.160 $ 0.067 $ 0.120 $ 0.101 $ 0.101
Net realized and unrealized gain (loss)
on investments....................... 2.380 1.738 1.977 (0.431) 0.809
-------- -------- -------- -------- --------
Total income (loss)
from investment operations....... $ 2.540 $ 1.805 $ 2.097 $ (0.330) $ 0.910
-------- -------- -------- -------- --------
Less Distributions:
From net investment income............. $ (0.035) $ (0.100) $ (0.100) $ (0.100) $ (0.060)
From net realized gain on investments.. (0.885) (3.695) (1.030) (0.520) (0.590)
In excess of net realized gain
on investments....................... -- -- (1.117) -- --
-------- -------- -------- -------- --------
Total distributions................ $ (0.920) $ (3.795) $ (2.247) $ (0.620) $ (0.650)
-------- -------- -------- -------- --------
Net asset value, end of year................ $ 10.480 $ 8.860 $ 10.850 $ 11.000 $ 11.950
========= ========= ========= ========= =========
Total Return(3)............................. 28.92% 17.53% 20.51% (2.75%) 7.93%
Ratios/Supplemental Data:
Net assets, end of period (000 omitted) $ 33,490 $ 14,029 $ 25,993 $ 37,124 $ 68,226
Ratio of expenses to average net assets(1) 1.18%(6) 1.20%(2) 1.17%(2) 1.11% 1.09%
Ratio of net investment income to average
net assets(1) ....................... 0.35% 0.73% 0.89% 0.91% 0.86%
Portfolio turnover rate(5) ............ 25% 41% 40% 36% 38%
Average commission rate paid (4) ..... $ 0.0511 $ 0.0511 -- -- --
(1)For the years ended December 31, 1997, 1996 and 1995, the Investment Adviser
and/or the Principal Underwriter reduced their fees. Had such actions not
been undertaken, net investment income (loss) per share and the ratios would
have been as follows:
1997 1996 1995
-----------------------------------
Net investment income (loss) per share. $ (0.041) $ 0.048 $ 0.105
========= ========= =========
Ratios (As a percentage of average net assets):
Expenses........................... 1.62%(6) 1.41% 1.28%
========= ========= =========
Net investment income (loss)....... (0.09%) 0.52% 0.78%
========= ========= =========
(2) Custodian fees were reduced by credits resulting from cash balances the
Trust maintained with the custodian (Note 1D). The computation of net
expenses to average daily net assets reported above for the years ended
December 31, 1997, 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 1.14%, 1.15% and 1.14% for the
years ended December 31, 1997, 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, the Fund is
required to disclose its average commission rate per share for security
trades on which commissions are charged. Amount for the year ended December
31, 1997 is for the period while the Fund was making investments directly in
securities. The average commission rate paid for the period since the Fund
transferred substantially all of its investable assets to the Portfolio is
shown in the Portfolio's financial statements which are included elsewhere
in this report.
(5) Portfolio turnover represents the rate of portfolio activity for the period
while the Fund was making investments directly in securities. The portfolio
turnover rate for the period since the Fund transferred substantially all of
its investable assets to the Portfolio is shown in the Portfolio's financial
statments which are included elsewhere in this report.
(6) Includes each Fund's share of its corresponding Portfolio's allocated
expenses.
See notes to fianacial statements
</TABLE>
<PAGE>
WRIGHT MANAGED EQUITY TRUST
WRIGHT MAJOR BLUE CHIP EQUITIES FUND
================================================================================
<TABLE>
<CAPTION>
Year Ended December 31,
-----------------------------------------------------------
FINANCIAL HIGHLIGHTS 1997 1996 1995 1994 1993
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......... $ 12.450 $ 12.650 $ 11.390 $ 12.720 $ 13.380
-------- -------- -------- -------- --------
Income (Loss) from Investment Operations:
Net investment income(1)............... $ 0.100 $ 0.064 $ 0.153 $ 0.180 $ 0.176
Net realized and unrealized gain (loss)
on investments....................... 3.515 2.131 3.107 (0.295) (0.046)
-------- -------- -------- -------- --------
Total income (loss)
from investment operations....... $ 3.615 $ 2.195 $ 3.260 $ (0.115) $ 0.130
-------- -------- -------- -------- --------
Less Distributions:
From net investment income............. $ (0.085) $ (0.120) $ (0.160) $ (0.160) $ (0.160)
From net realized gain on investments.. (3.960) (2.275) (1.840) (1.055) (0.625)
In excess of net realized gains........ -- -- -- -- (0.005)
-------- -------- -------- -------- --------
Total distributions................ $ (4.045) $ (2.395) $ (2.000) $ (1.215) $ (0.790)
-------- -------- -------- -------- --------
Net asset value, end of year................ $ 12.020 $ 12.450 $ 12.650 $ 11.390 $ 12.720
========= ========= ========= ========= =========
Total Return(3)............................. 33.86% 17.63% 28.98% (0.70%) 1.00%
Ratios/Supplemental Data:
Net assets, end of period (000 omitted) $ 27,721 $ 25,815 $ 49,134 $ 51,085 $ 88,349
Ratio of expenses to average net assets(1) 1.08% 1.08%(2) 1.07%(2) 0.99% 0.97%
Ratio of net investment income to average
net assets(1)...................... 0.68% 0.90% 1.19% 1.46% 1.37%
Portfolio turnover rate................ 89% 45% 83% 55% 53%
Average commission rate paid (4)....... $ 0.0556 $ 0.0564 -- -- --
(1)For the years ended December 31, 1997, 1996 and 1995, the Principal
Underwriter and/or Investment Adviser reduced their fees. Had such action not
been undertaken, net investment income per share and the ratios would have
been as follows:
1997 1996 1995
------------------------------------
Net investment income per share........ $ 0.049 $ 0.061 $ 0.150
========= ========= =========
Ratios (As a percentage of average net assets):
Expenses........................... 1.43% 1.12% 1.09%
========= ========= =========
Net investment income.............. 0.33% 0.86% 1.17%
========= ========= =========
(2) Custodian fees were reduced by credits resulting from cash balances the
Trust maintained with the custodian (Note 1D). The computation of net
expenses to average daily net assets reported above for the years ended
December 31, 1997, 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, 1997, 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, the Fund is
required to disclose its average commission rate per share for security
trades on which commissions are charged.
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT MANAGED EQUITY TRUST
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND
================================================================================
<TABLE>
<CAPTION>
Year Ended December 31
---------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1997* 1997 1996 1995 1994 1993
- ---------------------------------------------------------------------------------------------------------------------------
Institutional
Shares Standard Shares
--------- --------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......... $ 10.00 $16.690 $ 14.770 $ 13.090 $ 13.410 $ 10.520
--------- --------- --------- --------- --------- ---------
Income (loss) from Investment Operations:
Net investment income.................. $ 0.006 $ 0.185 $ 0.128 $ 0.142 $ 0.127 $ 0.107
Net realized and unrealized gain (loss)
on investments..................... (0.646)++ 0.048++ 2.902 1.638 (0.347) 2.853
--------- --------- --------- --------- --------- ---------
Total income (loss)
from investment operations.... $ (0.640) $ 0.233 $ 3.030 $ 1.780 $ (0.220) $ 2.960
--------- --------- --------- --------- --------- ---------
Less Distributions:
From net investment income............. $ -- $ (0.163) $ (0.100) $ (0.100) $ (0.100) $ (0.070)
From net realized gains................ (0.230) (0.740) (1.010) -- -- --
--------- --------- --------- --------- --------- ---------
Total distributions................ $ (0.230) $ (0.903) $ (1.110) $ (0.100) $ (0.100) $ (0.070)
--------- --------- --------- --------- --------- ---------
Net asset value, end of year................ $ 9.130 $16.020 $ 16.690 $ 14.770 $ 13.090 $ 13.410
========== ========== ========== ========== ========== ==========
Total Return(1)............................. (6.37%) 1.54% 20.73% 13.61% (1.64%) 28.22%
Ratios/Supplemental Data
Net assets, end of period (000 omitted) $ 45,094 $212,698 $268,732 $237,176 $200,232 $100,071
Ratio of expenses to average daily net
assets............................. 1.16%(4)+ 1.31%(4) 1.30% 1.29% 1.31% 1.46%
Ratio of net investment income to average
daily net assets................... 0.15%+ 0.82% 0.82% 0.99% 1.00% 0.67%
Portfolio Turnover Rate(3) ............ 4% 4% 29% 12% 12% 30%
Average commision rate paid (2)........ $ 0.0189 $ 0.0189 $ 0.1882 -- -- --
(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, the Fund is
required to disclose its average commission rate per share for security
trades on which commissions are charged. Amount for the year ended December
31, 1997 is for the period while the Fund was making investments directly in
securities. The average commission rate paid for the period since the Fund
transferred substantially all of its investable assets to the Portfolio is
shown in the Portfolio's financial statements which are included elsewhere
in this report.
(3) Portfolio turnover represents the rate of portfolio activity for the period
while the Fund was making investments directly in securities. The portfolio
turnover rate for the period since the Fund transferred substantially all of
its investable assets to the Portfolio is shown in the Portfolio's financial
statments which are included elsewhere in this report.
(4) Includes each Fund's share of its corresponding Portfolio's allocated
expenses. * For the period from July 7, 1997 (inception of offering
Institutional shares) to December 31, 1997.
+ Annualized.
++ Per share amount is not in accordance with the net realized and unrealized
gain (loss) for the period because of the timing of sales of fund shares and
the amounts per share realized and unrealized gains and losses at such
times.
See notes to fianacial statements
</TABLE>
<PAGE>
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 Major Blue Chip Equities Fund (WMBC) series (formerly the Wright
Quality Core Equities Fund), and Wright International Blue Chip Equities Fund
(WIBC) series (collectively, the Funds), is registered under the Investment
Company Act of 1940, as amended, as a diversified, open-end, management
investment company. WBC, WJBC, and WIBC invest all of their investable assets in
interests in a separate corresponding open-end management investment company (a
Portfolio), a New York Trust, having the same investment objective as its
corresponding Fund. WBC invests its assets in the Selected Blue Chip Equities
Portfolio, WJBC invests its assets in the Junior Blue Chip Equities Portfolio,
and WIBC invests its assets in the International Blue Chip Equities Portfolio.
On May 2, 1997, WBC, WJBC, and WIBC transferred their net assets (substantially
all of their investable assets) to their corresponding Portfolio in exchange for
interests in the Portfolio. WBC transferred net assets with a value of
$214,549,482, including unrealized appreciation of $45,756,289. WJBC transferred
net assets with a value of $12,729,749, including unrealized appreciation of
$2,211,989. WIBC transferred net assets with a value of $283,992,069, including
unrealized appreciation of $59,307,896. The value of each Fund's investment in
its corresponding Portfolio reflects the Fund's proportionate interest in the
net assets of that Portfolio (99.99%, 99.99%, and 99.99% at December 31, 1997
for WBC, WJBC, and WIBC, respectively). The performance of each Fund is directly
affected by the performance of its corresponding Portfolio. The financial
statements of each Portfolio, including the portfolio of investments, are
included elsewhere in this report and should be read in conjunction with each
Fund's financial statements. 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. Valuation of securities by WBC,
WJBC and WIBC are discussed in Note 1 of the Portfolios' Notes to Financial
Statements which are included elsewhere in this report.
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. Income -- Before WBC, WJBC, and WIBC began investing in its corresponding
Portfolio, the Funds held their own investments directly. For Funds which
held investments directly, 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. The net investment income of WBC, WJBC,
and WIBC also consists of the Fund's pro rata share of the net investment
income of its corresponding Portfolio, less all actual and accrued expenses
of each Fund determined in accordance with generally accepted accounting
principles.
D. Expense Reduction -- The Funds have entered into an arrangement with its
custodian whereby interest earned on uninvested cash balances is used to
offset custodian fees. All significant reductions are reported as a
reduction of expenses in the Statement of Operations.
<PAGE>
E. 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
$24,461,107 and $1,952,327, respectively, as long-term capital gain
distributions paid during the taxable year.
At December 31, 1997, net capital losses of $3,497 for WIBC attributable to
security transactions incurred after October 31, 1997 are treated as
arising on the first day of the Fund's next taxable year.
F. 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.
G. 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 31,1997, 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 445,029 (445,029) --
WJBC 148,270 (141,356) (6,914)
WMBC 854,284 (854,284) --
WIBC 5,138,000 (1,985,871) (3,152,129)
- -------------------------------------------------------------------------------
Net investment income, net realized gains (losses) and net assets were not
affected by these reclassifications.
H. Other -- Investment transactions are accounted for on the date the
investments are purchased or sold.
I. Use of Estimates -- The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported
amounts of revenue and expense during the reporting period. Actual results
could differ from those estimates.
J. Multiple Classes of Shares of Beneficial Interest -- Each Fund is
authorized to offer a standard share class and an institutional share
class. The share classes differ in their respective distribution and
service fees. All shareholders bear the common expenses of the Fund pro
rata based on the average daily net assets of each class, without
distinction between share classes. Dividends are declared separately for
each class. Each class has equal rights as to voting, redemption,
dividends, and liquidation. At December 31, 1997, only WIBC had an
institutional share class.
(2) INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The Trust has engaged The Winthrop Corporation (Winthrop) to act as
investment adviser to the Funds pursuant to the respective Investment Advisory
<PAGE>
Contracts. Pursuant to a service agreement between Winthrop and its wholly-owned
subsidiary, Wright Investors' Service, Inc. (Wright), Wright furnishes each Fund
with 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, 1997, for WMBC the effective annual rate was
0.46%. To enhance the net income of the WJBC and WMBC, Wright made a reduction
of its investment adviser fee in the amount of $21,246 and $50,081,
respectively. Prior to May 2, 1997 (when WBC, WJBC, and WIBC transferred
substantially all of their assets to their corresponding Portfolio in exchange
for interests in their corresponding Portfolio), WBC, WJBC, and WIBC retained
Wright as their investment adviser. The Portfolios have engaged Wright to render
investment advisory services. See Note 2 of the Portfolios' Notes to Financial
Statements which are included elsewhere in this report. For the period from
January 1, 1997 to May 1, 1997, for WBC, WJBC, and WIBC, the effective annual
rate was 0.63%, 0.55%, and 0.77%, respectively. The Trust also has engaged Eaton
Vance Management (Eaton Vance) to act as administrator of the Trust. Under the
Administration Agreement, Eaton Vance is responsible for managing the business
affairs of the Trust and is compensated based upon a percentage of average daily
net assets which rate is reduced as average daily net assets exceed certain
levels. For the year ended December 31,1997, the effective annual rate was 0.12%
for WBC, 0.20% for WJBC, 0.20% for WMBC, and 0.11% 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 wholly-owned subsidiary of Winthrop, an annual rate of 0.25% of
each Fund's average daily net assets for activities primarily intended to result
in the sale of each Fund's Standard shares. Prior to May 1, 1997, the annual
rate was 0.20%. To enhance the net income of WJBC and WMBC, the Principal
Underwriter made a reduction of its fee by $13,700 and $41,100, respectively. In
addition, on May 1,1997, the Trustees adopted a service plan (the Service Plan)
which allows the funds to reimburse the Principle Underwriter for payments to
intermediaries for providing account administration and account maintenance
services to their customers who are beneficial owners of shares. The amount of
service fee payable under the Service Plan with respect to each class of shares
may not exceed 0.25% annually of the average daily net assets attributable to
the respective classes. For the period from May 1, 1997 to December 31, 1997 the
Funds did not accrue or pay any service fees.
(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 Year Ended
December 31, 1997 December 31, 1996
-----------------------------------------------------------
Shares Amount Shares Amount
- ------------------------------------------------------------------------------------------------------------------------
WRIGHT SELECTED BLUE CHIP EQUITIES FUND --
<S> <C> <C> <C> <C>
Sold ............................................... 2,295,567 $ 43,143,360 3,370,863 $ 58,680,124
Issued to shareholders in payment of
distributions declared.............................. 2,057,801 36,966,100 1,117,467 19,510,827
Reacquired............................................. (2,586,053) (48,801,052) (5,675,972) (102,627,362)
---------- ------------- ---------- -------------
Net increase (decrease).............................. 1,767,315 $ 31,308,408 (1,187,642) $ (24,436,411)
=========== =============== =========== ===============
<PAGE>
WRIGHT JUNIOR BLUE CHIP EQUITIES FUND --
Sold................................................... 2,059,302 $ 22,967,370 99,920 $ 1,044,278
Issued to shareholders in payment of
distributions declared............................. 202,275 2,080,022 444,180 3,864,662
Reacquired............................................. (649,566) (6,380,390) (1,355,874) (15,046,448)
---------- ------------- ---------- -------------
Net increase (decrease).............................. 1,612,011 $ 18,667,002 (811,774) $ (10,137,508)
=========== =============== =========== ===============
WRIGHT MAJOR BLUE CHIP EQUITIES FUND --
Sold................................................... 432,179 $ 5,533,181 337,332 $ 4,468,704
Issued to shareholders in payment of
distributions declared.............................. 648,550 7,400,696 394,213 4,874,918
Reacquired............................................. (847,964) (10,493,966) (2,543,369) (33,684,007)
---------- ------------- ---------- -------------
Net increase (decrease).............................. 232,765 $ 2,439,911 (1,811,824) $ (24,340,385)
=========== =============== =========== ===============
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND -- Standard Shares
Sold................................................... 6,878,669 $ 113,256,683 5,048,536 $ 81,155,741
Issued to shareholders in payment of
distributions declared.............................. 726,800 11,458,067 890,647 14,344,879
Reacquired............................................. (10,434,522) (175,017,131) (5,893,501) (92,844,086)
---------- ------------- ---------- -------------
Net increase (decrease).............................. (2,829,053) $ (50,302,381) 45,682 $ 2,656,534
=========== =============== =========== ===============
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND -- Institutional Shares
Period from July 7, 1997, the Inception of
Offering Institutional Shares, to December 31, 1997
------------------------------------------------------
Sold................................................... 4,814,034 $ 48,051,228
Issued to shareholders in payment of
distributions declared.............................. 122,616 1,107,228
Reacquired............................................. (82) (750)
---------- -------------
Net increase........................................... 4,936,568 $ 49,157,706
=========== ==============
</TABLE>
(5) INVESTMENT TRANSACTIONS
Purchases and sales of investments, other than U.S. Government securities
and short-term obligations and redemptions in kind, were as follows:
<TABLE>
<CAPTION>
Year Ended December 31, 1997
-------------------------------------------------------------------------
Wright Selected Wright Junior Wright Wright International
Blue Chip Blue Chip Major Blue Chip Blue Chip
Equities Fund* Equities Fund* Equities Fund Equities Fund*
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Purchases............................................ $ 19,732,545 $ 3,176,738 $ 22,612,753 $ 25,308,607
============ ============ ============ ============
Sales................................................ $ 24,365,621 $ 5,034,316 $ 23,624,115 $ 11,564,444
============ ============ ============ ============
Redemptions in Kind (at Value)....................... $ -- $ -- $ 5,429,312 $ --
============ ============ ============ ============
- --------------------------------------------------------------------------------------------------------------------------------
* For the period January 1, 1997 to May 1, 1997
</TABLE>
Redemption in kind transactions resulted in realized capital gains, for
book purposes, of $858,364 for WMBC.
<PAGE>
Subsequent to the initial transfer of assets from WBC, WJBC, and WIBC to
their corresponding Portfolio, increases and decreases in each Fund's investment
in its corresponding Portfolio for the period from May 2, 1997 to December 31,
1997 were as follows:
<TABLE>
<CAPTION>
WBC WJBC WIBC
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Increases........................................... $35,312,831 $21,683,152 $104,894,402
Decreases........................................... 42,043,542 4,063,948 142,250,157
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
For the period from May 2, 1997 to December 31, 1997, investments were
distributed for WBC in payment for capital stock redeemed, resulting in realized
capital gains, for book purposes of $446,035.
(6) FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES
The cost and unrealized appreciation (depreciation) of the investment
securities owned at December 31,1997, as computed on a federal income tax basis,
are as follows:
Wright Major Blue Chip
Equities Fund
- -------------------------------------------------------------------------------
Aggregate cost............................ $ 20,894,391
============
Gross unrealized appreciation............. $ 6,541,439
Gross unrealized depreciation............. 243,611
-------------
Net unrealized appreciation............... $ 6,297,828
============
(7) LINE OF CREDIT
The Funds participate with other funds managed by Wright in a committed $20
million unsecured line of credit agreement with a bank. The Funds may
temporarily borrow from the line of credit to satisfy redemption requests or
settle investment transactions. Interest is charged to each Fund based on its
borrowings at an amount above the federal funds rate. In addition, a fee
computed at an annual rate of 0.10% on the average daily unused portion of the
$20 million line of credit, is allocated among the participating Funds at the
end of each quarter. The Funds did not have significant borrowings or allocated
fees during the period ended December 31, 1997.
<PAGE>
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 portfolio of investments of Wright Major Blue Chip
Equities Fund, of The Wright Managed Equity Trust (the Trust)
(comprising, respectively, of Wright Selected Blue Chip Equities Fund,
Wright Junior Blue Chip Equities Fund, Wright Major Blue Chip Equities
Fund, and Wright International Blue Chip Equities Fund) as of December
31, 1997, the related statements of operations for the year then ended,
the statements of changes in net assets for the years ended December
31, 1997 and 1996, and the financial highlights for each of the years
in the five-year period ended December 31, 1997. 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, 1997, 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 aforementioned Funds of The Wright Managed Equity Trust as
of December 31, 1997, 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 30, 1998
<PAGE>
WRIGHT MANAGED INCOME TRUST
STATEMENTS OF ASSETS AND LIABILITIES
December 31, 1997
================================================================================
<TABLE>
<CAPTION>
Wright Wright Wright
U.S. Treasury U.S. Treasury U.S. Treasury
Money Market Fund+ Near Term Fund Fund
(WTMM) (WNTB) (WUSTB)
- --------------------------------------------------------------------------------------------------------------------------
ASSETS:
Investments --
<S> <C> <C> <C>
Identified cost................................. $ 87,118,234 $ - $ -
Investments in Portfolio, at value (identified cost
of $101,882,534 and $71,853,970 for
WNTB and WUSTB, respectively) ................ - 102,861,429 74,538,487
------------ ------------ ------------
Total investments, at value (Note 1A)............. $ 87,118,234 $ 102,861,429 $ 74,538,487
Cash.............................................. 34,732 - -
Receivable for Fund shares sold................... 113,249 23,293 24,173
------------- ------------ ------------
Total Assets.................................. $ 87,266,215 $ 102,884,722 $ 74,562,660
------------- ------------ ------------
LIABILITIES:
Payable for Fund shares reacquired................ $ 29,995 $ 84,098 $ 328,660
Distributions payable............................. 143,405 230,944 73,219
Accrued management fees........................... 25,249 - -
Trustee fees payable.............................. 450 450 450
Accrued expenses and other liabilities............ 8,340 4,434 2,274
------------- ------------ ------------
Total Liabilities............................. $ 207,439 $ 319,926 $ 404,603
------------- ------------ ------------
NET ASSETS........................................... $ 87,058,776 $ 102,564,796 $ 74,158,057
============== ============== ==============
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............................ $ 87,058,776 $ 119,624,897 $ 71,378,031
Accumulated net realized loss on investments
(computed on the basis of identified cost)...... - (18,267,995) (10,015)
Unrealized appreciation of investments
(computed on the basis of identified cost)...... - 978,895 2,684,517
Undistributed net investment income............... - 228,999 105,524
------------- ------------ ------------
Net assets applicable to outstanding shares..... $ 87,058,776 $ 102,564,796 $ 74,158,057
============== ============== ==============
SHARES OF BENEFICIAL INTEREST OUTSTANDING......... 87,058,776 10,016,288 5,316,433
============== ============== ==============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST.......................... $1.00 $10.24 $13.95
============== ============== ==============
+ The Wright U.S. Treasury Money Market Fund does not invest in a corresponding
master portfolio. The amortized cost of securities held at December 31, 1997 is
the same as the market value.
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT MANAGED INCOME TRUST
STATEMENTS OF ASSETS AND LIABILITIES
December 31, 1997
================================================================================
<TABLE>
<CAPTION>
Wright Wright
Total Return Current Income
Bond Fund+ Fund
(WTRB) (WCIF)
- ---------------------------------------------------------------------------------------------------------------------------------
ASSETS:
Investments --
<S> <C> <C>
Identified cost................................. $ 76,312,800 $ -
Unrealized appreciation......................... 2,595,256 -
Investments in Portfolio, at value (identified cost
of $96,029,556 for WCIF)...................... - 97,765,377
------------ ------------
Total investments at value (Note 1A).............. $ 78,908,056 $ 97,765,377
Cash.............................................. 4,971 -
Receivable for Fund shares sold................... 2,964 441,746
Interest receivable............................... 1,191,830 -
------------ ------------
Total Assets.................................. $ 80,107,821 $ 98,207,123
------------ ------------
LIABILITIES:
Payable for Fund shares reacquired................ $ 5,493 $ 57,785
Distributions payable............................. 93,076 122,338
Distribution fee payable to Principal Underwriter. - 3,346
Trustee fees payable.............................. 450 450
Accrued expenses and other liabilities............ 5,139 4,933
------------ ------------
Total Liabilities............................. $ 104,158 $ 188,852
------------ ------------
NET ASSETS........................................... $ 80,003,663 $ 98,018,271
============= =============
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 di tributions declared), less cost of shares reacquired.. $ 77,114,605 $ 7,429,317
Accumulated undistributed net realized gain (loss) on in-
vestments (computed on the basis of identified cost).. 208,960 (1,046,783)
Unrealized appreciation (depreciation) of investments
(computed on the basis of identified cost)...... 2,595,256 1,735,821
Undistributed (distributions in excess of) net
investment income............................... 84,842 (100,084)
------------ ------------
Net assets applicable to outstanding shares..... $ 80,003,663 $ 98,018,271
============= =============
Computation of net asset value, offering and redemption price per share:
Standard Shares:
Net assets...................................... $ 80,003,663 $ 76,217,188
------------ ------------
Shares of beneficial interest outstanding....... 6,186,035 7,167,318
------------ ------------
Net asset value, offering price, and redemption price
per share of beneficial interest.............. $12.93 $10.63
============= =============
Institutional Shares:
Net assets...................................... $ 21,801,083
------------
Shares of beneficial interest outstanding....... 2,155,060
------------
Net asset value, offering price, and redemption price
per share of beneficial interest.............. $10.12
=============
+ The Wright Total Return Bond Fund does not invest in a corresponding master
portfolio.
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT MANAGED INCOME TRUST
STATEMENTS OF OPERATIONS
For the Year Ended December 31, 1997
================================================================================
<TABLE>
<CAPTION>
Wright Wright Wright
U.S. Treasury U.S. Treasury U.S. Treasury
Money Market Fund+ Near Term Fund Fund
(WTMM) (WNTB) (WUSTB)
- -------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1B):
Income --
<S> <C> <C> <C>
Interest income................................... $ 4,908,537 $ 2,779,967 $ 1,188,015
Interest income allocated from Portfolio.......... - 4,943,207 2,741,783
Expenses allocated from Portfolio................. - (332,329) (183,350)
------------ ------------ ------------
Investment income................................ $ 4,908,537 $ 7,390,845 $ 3,746,448
------------ ------------ ------------
Expenses --
Investment Adviser fee (Note 3)................... $ 329,000 $ 172,837 $ 73,974
Administrator fee (Note 3)........................ 65,863 105,782 63,450
Compensation of Trustees not affiliated with the
Investment Adviser or Administrator.............. 1,916 6,578 3,974
Custodian fee (Note 1C)........................... 26,333 20,126 2,341
Distribution expenses (Note 4).................... - 288,791 158,158
Transfer and dividend disbursing agent fees....... 37,427 28,802 19,880
Printing.......................................... 2,670 3,022 3,591
Audit services.................................... 20,462 28,662 23,262
Legal services.................................... 2,918 3,308 8,805
Shareholder communication expense................. 10,474 - -
Registration costs................................ 22,441 16,405 16,923
Miscellaneous..................................... 34,821 13,655 3,104
------------ ------------ ------------
Total expenses................................... $ 554,325 $ 687,968 $ 377,462
============= ============= =============
Deduct --
Reduction of Investment Adviser fee (Note 3)...... $ 131,353 $ - $ -
Reduction of distribution expenses by
Principal Underwriter (Note 4)................... - 19,330 9,263
--------------- ------------ ------------
Total deductions................................ $ 131,353 $ 19,330 $ 9,263
--------------- ------------ ------------
Net expenses.................................... $ 422,972 $ 668,638 $ 368,199
--------------- ------------ ------------
Net investment income.......................... $ 4,485,565 $ 6,722,207 $ 3,378,249
-------------- ------------ ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss on investment transactions
(identified cost basis)........................... $ - $ (114,104) $ (10,016)
Net realized loss on investment transactions from Portfolio
(identified cost basis)........................... - (75,865) -
------------ ------------ ------------
Net realized loss on investments................... $ - $ (189,969) $ (10,016)
Net change in unrealized appreciation (depreciation)
of investments.................................... - (21,256) 2,443,170
------------ ------------ ------------
Net realized and unrealized gain (loss)
on investments.................................. $ - $ (211,225) $ 2,433,154
------------ ------------ ------------
Net increase in net assets from operations....... $ 4,485,565 $ 6,510,982 $ 5,811,403
============= ============= =============
+ The Wright U.S. Treasury Money Market Fund does not invest in a corresponding master portfolio.
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT MANAGED INCOME TRUST
STATEMENTS OF OPERATIONS
For the Year Ended December 31, 1997
================================================================================
<TABLE>
<CAPTION>
Wright Wright
Total Return Current Income
Bond Fund+ Fund
(WTRB) (WCIF)
- -----------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1B):
Income --
<S> <C> <C>
Interest income................................... $ 5,179,781 $ 1,762,612
Interest income allocated from Portfolio.......... - 4,388,821
Expenses allocated from Portfolio................. - (292,671)
------------ ------------
Investment income................................ $ 5,179,781 $ 5,858,762
------------ ------------
Expenses --
Investment Adviser fee (Note 3)................... $ 326,326 $ 94,877
Administrator fee (Note 3)........................ 81,582 83,305
Compensation of Trustees not affiliated with the
Investment Adviser or Administrator.............. 2,297 2,499
Custodian fee (Note 1C)........................... 40,500 22,528
Distribution expenses (Note 4).................... 163,160 212,212
Transfer and dividend disbursing agent fees....... 25,360 21,194
Printing.......................................... 4,069 1,964
Audit services.................................... 27,662 23,462
Legal services.................................... 8,843 3,417
Registration costs................................ 15,721 15,316
Miscellaneous..................................... 1,527 7,759
------------ ------------
Total expenses................................... $ 697,047 $ 488,533
Deduct --
Reduction of distribution expenses by
Principal Underwriter (Note 4)................... - 45,629
------------ ------------
Net expenses.................................... $ 697,047 $ 442,904
------------ ------------
Net investment income.......................... $ 4,482,734 $ 5,415,858
------------ ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investment transactions
(identified cost basis)........................... $ 208,959 $ (98,264)
Net change in unrealized appreciation (depreciation)
of investments.................................... 2,451,993 2,131,195
------------ ------------
Net realized and unrealized gain (loss) on investments $ 2,660,952 $ 2,032,931
------------ ------------
Net increase in net assets from operations....... $ 7,143,686 $ 7,448,789
============= =============
+ The Wright Total Return Bond Fund does not invest in a corresponding master
portfolio.
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT MANAGED INCOME TRUST
STATEMENTS OF CHANGES IN NET ASSETS
================================================================================
<TABLE>
<CAPTION>
Wright Wright Wright
U.S. Treasury U.S. Treasury U.S. Treasury
Money Market Fund Near Term Fund Fund
(WTMM) (WNTB) (WUSTB)
Year Ended Dec. 31 Year Ended Dec. 31 Year Ended Dec. 31
--------------------------------------------------------------------------------------
1997 1996 1997 1996 1997 1996
- --------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From operations --
<S> <C> <C> <C> <C> <C> <C>
Net investment income........$ 4,485,565 $ 2,763,403 $ 6,722,207 $ 8,277,153 $ 3,378,249 $ 2,277,815
Net realized gain (loss) on
investment transactions..... - - (189,969) 564,027 (10,016) 1,565,818
Change in unrealized appreciation
(depreciation) of investments - - (21,256) (3,403,735) 2,443,170 (2,085,302)
------------ ------------ ------------ ------------ ------------ ------------
Net increase in
net assets resulting from
operations.................$ 4,485,565 $ 2,763,403 $ 6,510,982 $ 5,437,445 $ 5,811,403 $ 1,758,331
------------ ------------ ------------ ------------ ------------ ------------
Distributions to shareholders (Note 2) --
From net investment income...$ (4,485,565) $ (2,763,403) $ (6,658,751) $ (8,272,352) $ (3,277,052) $ (2,268,131)
From net realized gain....... - - - - (438,333) (683,329)
In excess of realized gains.. - - - - (22,651) -
------------ ------------ ------------ ------------ ------------ ------------
Total distributions.........$ (4,485,565) $ (2,763,403) $ (6,658,751) $ (8,272,352) $ (3,738,036) $ (2,951,460)
------------ ------------ ------------ ------------ ------------ ------------
Fund share transactions (Note 5)+ --
Proceeds from shares sold....$227,054,512 $254,493,576 $ 19,532,312 $ 34,366,823 $ 26,166,981 $ 49,896,782
Reinvestment of dividends.... 2,684,765 1,528,366 3,583,844 4,738,955 1,808,793 2,233,676
Cost of shares reacquired....(237,864,010) (206,727,380) (50,728,625) (49,545,671) (10,869,033) (11,115,624)
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in net
assets from Fund share
transactions.................$ (8,124,733) $ 49,294,562 $(27,612,469) $ (10,439,893) $ 17,106,741 $ 41,014,834
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease)
in net assets.............$ (8,124,733) $ 49,294,562 $(27,760,238) $ (13,274,800) $ 19,180,108 $ 39,821,705
NET ASSETS:
At beginning of year.......... 95,183,509 45,888,947 130,325,034 143,599,834 54,977,949 15,156,244
------------ ------------ ------------ ------------ ------------ ------------
At end of year................$ 87,058,776 $ 95,183,509 $102,564,796 $ 130,325,034 $ 74,158,057 $ 54,977,949
============= ============= ============= ============= ============= =============
UNDISTRIBUTED NET
INVESTMENT INCOME
INCLUDED IN NET ASSETS
AT END OF PERIOD..............$ - $ - $ 228,999 $ 165,543 $ 105,524 $ 17,123
============= ============= ============= ============= ============= =============
+ For WTMM, the Fund share transactions are at a net asset value of $1.00 per
share.
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT MANAGED INCOME TRUST
STATEMENTS OF CHANGES IN NET ASSETS
================================================================================
<TABLE>
<CAPTION>
Wright Wright
Total Return Current Income
Bond Fund Fund
(WTRB) (WCIF)
Year Ended Dec. 31 Year Ended Dec. 31
--------------------------------------------------------------
1997 1996 1997 1996
- ---------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From operations --
<S> <C> <C> <C> <C>
Net investment income........ $ 4,482,734 $ 6,253,543 $ 5,415,858 $ 4,184,753
Net realized gain (loss) on
investment transactions..... 208,959 1,478,297 (98,264) (196,901)
Change in unrealized appreciation
(depreciation) of investments 2,451,993 (7,506,256) 2,131,195 (1,341,304)
------------ ------------ ------------ ------------
Net increase in
net assets resulting from
operations................. $ 7,143,686 $ 225,584 $ 7,448,789 $ 2,646,548
------------ ------------ ------------ ------------
Distributions to shareholders from
net investment income (Note 2) --
Standard shares............. $ (4,473,380) $ (6,256,731) $ (4,764,576) $ (4,191,419)
Institutional shares........ - - (615,830) -
------------ ------------ ------------ ------------
Total distributions......... $ (4,473,380) $ (6,256,731) $ (5,380,406) $ (4,191,419)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets
from Fund share transactions (Note 5) --
Standard shares............. $(14,048,274) $ (25,348,824) $ 9,750,500 $ (176,931)
Institutional shares........ - - 21,576,500 -
------------ ------------ ------------ ------------
Net increase (decrease) in net assets
from Fund share transactions $ (14,048,274) $ (25,348,824)$ 31,326,517 $ (176,931)
------------ ------------ ------------ ------------
Net increase (decrease)
in net assets............. $(11,377,968) $ (31,379,971) $ 33,394,900 $ (1,721,802)
NET ASSETS:
At beginning of year.......... 91,381,631 122,761,602 64,623,371 66,345,173
------------ ------------ ------------ ------------
At end of year................ $ 80,003,663 $ 91,381,631 $ 98,018,271 $ 64,623,371
============= ============= ============= =============
UNDISTRIBUTED (DISTRIBUTIONS
IN EXCESS OF) NET INVESTMENT
INCOME INCLUDED IN NET
ASSETS AT END OF PERIOD....... $ 84,842 $ 75,488 $ (100,084) $ (56,700)
============= ============= ============= =============
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT MANAGED INCOME TRUST
WRIGHT U.S. TREASURY MONEY MARKET FUND
================================================================================
<TABLE>
<CAPTION>
Year Ended December 31,
---------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1997 1996 1995 1994 1993
- ------------------------------------------------------------------------------------------------------------------------------
<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) .................. 0.04739 0.04745 0.05212 0.03494 0.02503
Less Distributions:
From net investment income.................. (0.04739) (0.04745) (0.05212) (0.03494) (0.02503)
-------- -------- --------- --------- ----------
Net asset value, end of year................... $1.00 $1.00 $1.00 $1.00 $1.00
========= ========= ========= ========= =========
Total Return(2)................................ 4.84% 4.85% 5.34% 3.55% 2.53%
Ratios/Supplemental Data:
Net assets, end of period (000 omitted)..... $87,059 $95,184 $45,889 $68,877 $11,011
Ratio of net expenses to average daily
net assets(1)............................. 0.45% 0.45%(3) 0.46%(3) 0.45% 0.45%
Ratio of net investment income to average daily
net assets(1)............................. 4.74% 4.73% 5.22% 3.77% 2.52%
(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,
--------------------------------------------------------------
1997 1996 1995 1994 1993
- ----------------------------------------------------------------------------------------------------------------------------
Net investment income per share................ $0.04599 $0.04524 $0.05120 $0.03253 $0.01977
========= ========= ========= ========= =========
Ratios (As a percentage of average daily net assets):
Expenses.................................... 0.59% 0.67% 0.65% 0.71% 0.97%
========= ========= ========= ========= =========
Net investment income ...................... 4.60% 4.51% 5.03% 3.51% 1.99%
========= ========= ========= ========= =========
(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
reinvested 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.
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT MANAGED INCOME TRUST
WRIGHT U.S. TREASURY NEAR TERM FUND
================================================================================
<TABLE>
<CAPTION>
Year Ended December 31,
---------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1997 1996 1995 1994 1993
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......... $ 10.240 $ 10.450 $ 9.920 $ 10.840 $ 10.660
-------- -------- -------- -------- --------
Income (loss) from Investment Operations:
Net investment income(1) ................ $ 0.599 $ 0.606 $ 0.631 $ 0.588 $ 0.655
Net realized and unrealized gain (loss)
on investments......................... (0.010) (0.212) 0.524 (0.920) 0.180
-------- -------- -------- -------- --------
Total income (loss) from investment
operations........................... $ 0.589 $ 0.394 $ 1.155 $ (0.332) $ 0.835
-------- -------- -------- -------- --------
Less distributions from net investment income $ (0.589) $ (0.604) $ (0.625) $ (0.588) $ (0.655)
-------- -------- -------- -------- --------
Net asset value, end of year................ $ 10.240 $ 10.240 $ 10.450 $ 9.920 $ 10.840
========= ========= ========= ========= ========
Total Return(2)............................. 5.93% 3.91% 11.93% (3.10%) 7.95%
Ratios/Supplemental Data:
Net assets, end of period (000 omitted).. $102,565 $130,325 $ 143,600 $ 212,122 $380,917
Ratio of expenses to average net assets.. 0.87%(4) 0.80% 0.80% 0.70% 0.70%
Ratio of net investment income to average
net assets............................. 5.82% 5.90% 6.20% 5.70% 6.00%
Portfolio Turnover Rate(3) .............. 4% 28% 21% 33% 22%
(1)For the year ended December 31, 1997, the Principal Underwriter reduced its
fees. Had such action not been undertaken, net investment income per share
and the ratios would have been as follows:
1997
Net investment income per share........ $ 0.597
=========
Ratios (As a percentage of average net assets):
Expenses........................... 0.89%(4)
=========
Net investment income.............. 5.80%
=========
(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) Portfolio turnover represents the rate of portfolio activity for the period
while the Fund was making investments directly in securities. The portfolio
turnover rate for the period since the Fund transferred substantially all of
its investable assets to the Portfolio is shown in the Portfolio's financial
statements which are included elsewhere in this report.
(4) Includes each Fund's share of its corresponding Portfolio's allocated
expenses.
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT MANAGED INCOME TRUST
WRIGHT U.S. TREASURY FUND
================================================================================
<TABLE>
<CAPTION>
Year Ended December 31,
----------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1997 1996(3) 1995 1994 1993
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......... $ 13.580 $ 14.710 $ 12.250 $ 14.360 $ 13.190
-------- -------- -------- -------- --------
Income (loss) from Investment Operations:
Net investment income(1)................. $ 0.721 $ 0.769 $ 0.880 $ 0.880 $ 0.892
Net realized and unrealized gain (loss)
on investments......................... 0.462 (0.973) 2.458 (2.110) 1.170
-------- -------- -------- -------- --------
Total income (loss)
from investment operations........... $ 1.183 $ (0.204) $ 3.338 $ (1.230) $ 2.062
-------- -------- -------- -------- --------
Less Distributions:
From net investment income............... $ (0.703) $ (0.756) $ (0.878) $ (0.880) $ (0.892)
From net realized gain................... (0.110) (0.170) -- -- --
-------- -------- -------- -------- --------
Total distributions.................... $ (0.813) $ (0.926) $ (0.878) $ (0.880) $ (0.892)
-------- -------- -------- -------- --------
Net asset value, end of year................ $ 13.950 $ 13.580 $ 14.710 $ 12.250 $ 14.360
========= ========= ========= ========= =========
Total Return(2)............................. 9.09% (1.23%) 28.18% (8.66%) 15.90%
Ratios/Supplemental Data:
Net assets, end of period (000 omitted).. $ 74,158 $ 54,978 $ 15,156 $ 16,658 $ 29,846
Ratio of net expenses to average net assets 1.01%(5) 0.90% 0.90% 0.90% 0.90%
Ratio of net expenses after custodian fee
reduction to average net assets........ 0.87%(5) -- -- -- --
Ratio of net investment income to average
net assets............................. 5.34% 5.50% 6.60% 6.90% 6.30%
Portfolio Turnover Rate(4) .............. 1% 65% 8% 1% 12%
(1)During each of the five years ended December 31, 1997, the operating
expenses of the Fund were reduced by an allocation of expenses to the
Investment Adviser or a reduction in distribution fees by the Principal
Underwriter, 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,
-----------------------------------------------------------------
1997 1996 1995 1994 1993
- -----------------------------------------------------------------------------------------------------------------------------
Net investment income per share............. $ 0.720 $ 0.769 $ 0.827 $ 0.854 $ 0.878
========= ========= ========= ========= =========
Ratios (As a percentage of average net assets):
Expenses .............................. 1.02%(5) 0.90% 1.20% 1.10% 1.00%
========= ========= ========= ========= =========
Expenses after custodian fee reduction... 0.89%(5) -- -- -- --
========= ========= ========= ========= =========
Net investment income.................... 5.33% 5.50% 6.20% 6.70% 6.20%
========= ========= ========= ========= =========
(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.
(4) Portfolio turnover represents the rate of portfolio activity for the period
while the Fund was making investments directly in securities. The portfolio
turnover rate for the period since the Fund transferred substantially all of
its investable assets to the Portfolio is shown in the Portfolio's financial
statements which are included elsewhere in this report.
(5) Includes each Fund's share of its corresponding Portfolio's allocated
expenses.
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT MANAGED INCOME TRUST
WRIGHT TOTAL RETURN BOND FUND
================================================================================
<TABLE>
<CAPTION>
Year Ended December 31,
---------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1997 1996(2) 1995 1994 1993
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......... $ 12.500 $ 13.120 $ 11.430 $ 13.010 $ 12.610
-------- -------- -------- -------- --------
Income (loss) from Investment Operations:
Net investment income.................... $ 0.690 $ 0.720 $ 0.758 $ 0.740 $ 0.789
Net realized and unrealized gain (loss) on
investments............................ 0.427 (0.631) 1.685 (1.580) 0.580
-------- -------- -------- -------- --------
Total income (loss)
from investment operations........... $ 1.117 $ 0.089 $ 2.443 $ (0.840) $ 1.369
-------- -------- -------- -------- --------
Less Distributions:
From net investment income............... $ (0.687) $ (0.709) $ (0.753) $ (0.740) $ (0.789)
From net realized gain on investments.... -- -- -- -- (0.177)
In excess of net realized gain on investments -- -- -- -- (0.003)
-------- -------- -------- -------- --------
Total distributions.................... $ (0.687) $ (0.709) $ (0.753) $ (0.740) $ (0.969)
-------- -------- -------- -------- --------
Net asset value, end of year................ $ 12.930 $ 12.500 $ 13.120 $ 11.430 $ 13.010
========= ========= ========= ========= =========
Total Return(1)............................. 9.25% 0.87% 21.97% (6.57%) 11.03%
Ratios/Supplemental Data:
Net assets, end of period (000 omitted).. $ 80,004 $ 91,382 $122,762 $143,497 $259,513
Ratio of net expenses to average net assets 0.90% 0.80% 0.80% 0.80% 0.80%
Ratio of net investment income to average
net assets............................. 5.50% 5.70% 6.20% 6.10% 6.00%
Portfolio Turnover Rate.................. 34% 96% 50% 32% 36%
(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.
See notes to fianacial statements
</TABLE>
<PAGE>
WRIGHT MANAGED INCOME TRUST
WRIGHT CURRENT INCOME FUND
================================================================================
<TABLE>
<CAPTION>
Year Ended December 31,
---------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1997** 1997 1996 1995 1994 1993
- ----------------------------------------------------------------------------------------------------------------------------
Institutional
Shares Standard Shares
----------- ---------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......... $ 10.000 $ 10.430 $ 10.670 $ 9.710 $ 10.750 $ 10.780
-------- -------- -------- -------- -------- --------
Income (loss) from Investment Operations:
Net investment income(1) ................ $ 0.313 $ 0.658 $ 0.674 $ 0.696 $ 0.690 $ 0.728
Net realized and unrealized gain (loss) on
investments............................ 0.120 0.206 (0.239) 0.955 (1.040) (0.030)
-------- -------- -------- -------- -------- --------
Total income (loss)
from investment operations......... $ 0.433 $ 0.864 $ 0.435 $ 1.651 $ (0.350) $ 0.698
-------- -------- -------- -------- -------- --------
Less Distributions:
From net investment income............... $ (0.314)(6) $ (0.664) $ (0.675) $ (0.691) $ (0.690)* $ (0.728)
-------- -------- -------- -------- -------- --------
Total distributions.................. $ (0.313) $ (0.664) $ (0.675) $ (0.691) $ (0.690) $ (0.728)
-------- -------- -------- -------- -------- --------
Net asset value, end of year................ $ 10.120 $ 10.630 $ 10.430 $ 10.670 $ 9.710 $ 10.750
========= ========= ========= ========= ========= =========
Total Return(2)............................. 4.40% 8.56% 4.31% 17.46% (3.30%) 6.59%
Ratios/Supplemental Data:
Net assets, end of period (000 omitted).. $ 21,801(4) $ 76,217 $ 64,623 $ 66,345 $84,178 $115,158
Ratio of net expenses to average net assets 0.48%(4)(5) 0.89%(4) 0.90% 0.90% 0.80% 0.80%
Ratio of net investment income to average
net assets......................... 4.70%(5) 6.44% 6.50% 6.80% 6.90% 6.70%
Portfolio Turnover Rate(3) .............. 2% 3% 9% 26% 10% 4%
* Includes distribution in excess of net investment income of $.00013 per share.
** For the period from July 7, 1997 (start of business) to December 31, 1997.
(1)For the year ended December 31, 1997, the Principal Underwriter reduced its
fees. Had such action not been undertaken, net investment income per share
and the ratios would have been as follows:
1997
Net investment income per share........ $ 0.652
=========
Ratios (As a percentage of average net assets):
Expenses........................... 0.95%(4)
=========
Net investment income.............. 6.38%
=========
(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
reinvested at the net asset value on the record date.
(3) Portfolio turnover represents the rate of portfolio activity for the period
while the Fund was making investments directly in securities. The portfolio
turnover rate for the period since the Fund transferred substantially all of
its investable assets to the Portfolio is shown in the Portfolio's financial
statements which are included elsewhere in this report.
(4) Includes each Fund's share of its corresponding Portfolio's allocated
expenses.
(5) Annualized. (6) Includes distribution in excess of net investment
income of $0.00001 per share.
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT MANAGED INCOME TRUST
NOTES TO FINANCIAL STATEMENTS
================================================================================
(1) SIGNIFICANT ACCOUNTING POLICIES
The Wright Managed Income Trust (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 (collectively, the
Funds), is registered under the Investment Company Act of 1940, as amended, as a
diversified, open-end, management investment company. WNTB, WUSTB, and WCIF
invest all of their investable assets in interests in a separate corresponding
open-end management investment company (a Portfolio), a New York Trust, having
the same investment objective as its corresponding Fund. WNTB invests its assets
in the Near Term Portfolio, WUSTB invests its assets in the U.S. Treasury
Portfolio, and WCIF invests its assets in the Current Income Portfolio. On May
2, 1997, WNTB, WUSTB, and WCIF transferred their net assets (substantially all
of their investable assets) to their corresponding Portfolio in exchange for
interests in the Portfolio. WNTB transferred net assets with a value of
$123,524,244, including unrealized appreciation of $207,883. WUSTB transferred
net assets with a value of $58,739,419, including unrealized depreciation of
$708,821. WCIF transferred net assets with a value of $85,898,444, including
unrealized depreciation of $815,577. The value of each Fund's investment in its
corresponding Portfolio reflects the Fund's proportionate interest in the net
assets of that Portfolio (99.9%, 99.9%, and 99.9% at December 31, 1997 for WNTB,
WUSTB, and WCIF, respectively). The performance of each Fund is directly
affected by the performance of its corresponding Portfolio. The financial
statements of each Portfolio, including the portfolio of investments, are
included elsewhere in this report and should be read in conjunction with each
Fund's financial statements. 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. Valuation of securities by WNTB,
WUSTB, and WCIF are discussed in Note 1 of the Portfolios' Notes to Financial
Statements which are included elsewhere in this report.
B. Interest Income -- Before WNTB, WUSTB, and WCIF began investing in their
corresponding Portfolio, the Funds held their own investments directly. For
Funds which held investments directly, 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. The net investment income of
WNTB, WUSTB, and WCIF also consists of the Fund's pro rata share of the net
investment income of its corresponding Portfolio, less all actual and accrued
expenses of each Fund determined in accordance with generally accepted
accounting principles.
C. Expense Reduction -- The Funds have 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, 1997, the Trust, for federal
income tax purposes, had capital loss carryovers of $22,706 (WTMM), $18,251,100
<PAGE>
(WNTB), $10,016 (WUSTB) and $1,046,783 (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 WUSTB WCIF
- -------------------------------------------------------------------------------
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
2005 4,550 188,862 10,016 19,428
- -------------------------------------------------------------------------------
At December 31, 1997, net capital losses of $2,973 and $16,895 for WTMM and
WNTB, respectively, attributable to security transactions incurred after
October 31, 1997 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.
F. Other -- Investment transactions are accounted for on the date the
investments are purchased or sold.
G. Multiple Classes of Shares of Beneficial Interest -- Each Fund is
authorized to offer a standard share class and an institutional share
class. The share classes differ in their respective distribution and
service fees. All shareholders bear the common expenses of the Fund pro
rata based on the average daily net assets of each class, without
distinction between share classes. Dividends are declared separately for
each class. Each class has equal rights as to voting, redemption,
dividends, and liquidation. At December 31,1997, only WCIF had an
institutional share class.
(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, 1998 and will be based on tax accounting
methods which may differ from amounts determined for financial statement
purposes.
During the year ended December 31,1997, 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 $(1,319,208) $1,319,208 $ --
WUSTB -- 12,796 (12,796)
WTRB 6,177 (6,177) --
WCIF -- 78,836 (78,836)
- -------------------------------------------------------------------------------
Net investment income, net realized gains (losses) and net asets ere not
affected by these reclassifications.
(3) INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The Trust has engaged The Winthrop Corporation (Winthrop) to act as
investment adviser to the Funds pursuant to the respective Investment Advisory
Contracts. Pursuant to a service agreement between Winthrop and its wholly-owned
<PAGE>
subsidiary, Wright Investors' Service, Inc. (Wright), Wright furnishes each Fund
with 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, 1997, for WTMM, and WTRB the effective annual
rate was 0.35% and 0.40%, respectively. Prior to May 2, 1997 (when WNTB, WUSTB,
and WCIF transferred substantially all of their assets to their corresponding
Portfolio in exchange for interests in their corresponding Portfolio), WNTB,
WUSTB, and WCIF retained Wright as their investment adviser. The Portfolios have
engaged Wright to render investment advisory services. See Note 2 of the
Portfolios' Notes to Financial Statements which are included elsewhere in this
report. For the period from January 1, 1997 to April 30, 1997, for WNTB, WUSTB,
and WCIF, the effective annual rate was 0.41%, 0.40%, and 0.40%, respectively.
To enhance the net income of the Funds, Wright made a reduction of its
investment adviser fee by $131,353 for WTMM.
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,
1997, the effective annual rate was 0.07% for WTMM, 0.10% for WNTB, 0.10% for
WUSTB, 0.10% 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 wholly-owned subsidiary of Winthrop, at an annual
rate of 0.25% of the average daily net assets of each Fund for activities
primarily intended to result in the sale of each Fund's Standard shares. Prior
to May 1, 1997, the annual rate was 0.20%. To enhance the net income of WNTB,
WUSTB, and WCIF, the Principal Underwriter made a reduction of its fee by
$19,330, $9,263, and $45,629, respectively.
In addition, on May 1, 1997, the Trustees adopted a service plan (the Service
Plan) which allows the Funds to reimburse the Principal Underwriter for payments
to intermediaries for providing account administration and personal and account
maintenance services to their customers who are beneficial owners of shares. The
amount of service fee payable under the Service Plan with respect to each class
of shares may not exceed 0.25% annually of the average daily net assets
attributable to the respective classes. For the period from May 1, 1997 to
December 31, 1997 the Funds did not accrue or pay any service fees.
(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 Year Ended
December 31, 1997 December 31, 1996
--------------------------------------------------------
Shares Amount Shares Amount
- ---------------------------------------------------------------------------------------------------------------------------
WRIGHT U.S. TREASURY NEAR TERM FUND --
<S> <C> <C> <C> <C>
Sales.................................................... 1,912,457 $ 19,532,312 3,340,768 $ 34,366,823
Issued to shareholders in payment of
distributions declared................................. 351,009 3,583,844 461,357 4,738,955
Redemptions.............................................. (4,968,090) (50,728,625) (4,819,450) (49,545,671)
---------- ------------- ---------- -------------
Net decrease......................................... (2,704,624) $(27,612,469) (1,017,325) $(10,439,893)
============ ============= =========== ==============
<PAGE>
WRIGHT U.S. TREASURY FUND --
Sales.................................................... 1,939,601 $ 26,166,981 3,670,606 $ 49,896,782
Issued to shareholders in payment
of distributions declared.............................. 206,796 1,808,793 164,524 2,233,676
Redemptions.............................................. (877,670) (10,869,033) (817,559) (11,115,624)
---------- ------------- ---------- -------------
Net increase (decrease).............................. 1,268,727 $ 17,106,741 3,017,571 $ 41,014,834
============ =========== ========== ============
WRIGHT TOTAL RETURN BOND FUND --
Sales.................................................... 565,212 $ 7,150,768 931,801 $ 11,573,005
Issued to shareholders in payment
of distributions declared.............................. 265,206 3,324,077 344,332 4,267,461
Redemptions.............................................. (1,957,795) (24,523,119) (3,318,666) (41,189,290)
---------- ------------- ---------- -------------
Net decrease......................................... (1,127,377) $(14,048,274) (2,042,533) $(25,348,824)
============ ============= =========== =============
WRIGHT CURRENT INCOME FUND -- Standard Shares
Sales.................................................... 3,537,930 $ 36,704,939 1,488,351 $ 15,484,497
Issued to shareholders in payment
of distributions declared.............................. 323,638 3,388,896 289,710 3,004,165
Redemptions.............................................. (2,892,503) (30,343,335) (1,798,536) (18,665,593)
---------- ------------- ---------- -------------
Net increase (decrease).............................. 969,065 $ 9,750,500 (20,475) $ (176,931)
============ ============= =========== ==============
</TABLE>
WRIGHT CURRENT INCOME FUND --Institutional Shares
<TABLE>
<CAPTION>
Period from July 7,1997, the
inception of offering Institutional
Shares, to December 31, 1997
<S> <C> <C>
Sales.................................................... 2,093,926 $ 20,960,187
Issued to shareholders in payment
of distributions declared.............................. 61,134 615,830
Redemptions.............................................. - -
---------- -------------
Net increase......................................... 2,155,060 $ 21,576,017
============ ============
</TABLE>
(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, 1997
- --------------------------------------------------------------------------------------------------------------------------------
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.. $ -- $ -- $ -- $ 20,512,477 $ --
============= ============= ============= ============= =============
U.S. Gov't Obligations...... $ 296,798,309 $ 3,990,938 $ 869,906 $ 7,626,758 $ 16,365,031
============= ============= ============= ============= =============
Sales --
Non-U.S. Gov't Obligations.. $ -- $ -- $ -- $ -- $ --
============= ============= ============= ============= =============
U.S. Gov't Obligations...... $ 304,488,411 $ 13,432,047 $ 594,937 $ 42,237,121 $ 1,031,693
============= ============= ============= ============= =============
* For the period from January 1,1997 to May 1, 1997.
</TABLE>
<PAGE>
Subsequent to the initial transfer of assets from WNTB, WUSTB, and WCIF to
their corresponding Portfolio, the increases and decreases in each Fund's
investment in its corresponding Portfolio for the period from May 1, 1997 to
December 31, 1997 were as follows:
WNTB WUSTB WCIF
- -------------------------------------------------------------------------------
Increases........... $136,940,835 $76,417,810 $117,569,127
Decreases........... 39,385,424 7,831,083 26,394,678
- -------------------------------------------------------------------------------
(7) FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES
The cost and unrealized appreciation (depreciation) in value of the
investments owned at December 31, 1997, as computed on a federal income tax
basis, are as follows:
Wright Total Return
Bond Fund
- -------------------------------------------------------------------------------
Aggregate cost............................ $ 76,312,800
============
Gross unrealized appreciation............. $ 2,642,430
Gross unrealized depreciation............. (47,174)
-------------
Net unrealized appreciation............... $ 2,595,256
============
(8) LINE OF CREDIT
The Funds participates with other funds managed by Wright in a committed
$20 million unsecured line of credit agreement with a bank. The Funds may
temporarily borrow from the line of credit to satisfy redemption requests or
settle investment transactions. Interest is charged to each fund based on its
borrowings at an amount above the federal funds rate. In addition, a fee
computed at an annual rate of 0.10% on the average daily unused portion of the
$20 million line of credit, is allocated among the participating funds at the
end of each quarter. The Funds did not have significant borrowings or allocated
fees during the period ended December 31, 1997.
<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 U.S. Treasury
Money Market Fund and Wright Total Return Bond Fund, of The Wright
Managed Income Trust (the Trust) (comprising, respectively, of Wright
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, 1997, the related statements of
operations for the year then ended, the statements of changes in net
assets for the years ended December 31, 1997 and 1996, and the
financial highlights for each of the years in the five-year period
ended December 31, 1997. 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, 1997, 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 aforementioned Funds of The Wright Managed Income Trust as
of December 31, 1997, 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 30, 1998
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
STATEMENTS OF ASSETS AND LIABILITIES
December 31, 1997
================================================================================
<TABLE>
<CAPTION>
Wright Selected Wright Junior Wright International
Blue Chip Blue Chip Blue Chip
Equities Portfolio Equities Portfolio Equities Portfolio
(WBC) (WJBC) (WIBC)
- -------------------------------------------------------------------------------------------------------------------------------
ASSETS:
Investments --
<S> <C> <C> <C>
Identified cost................................. $ 182,448,012 $ 30,458,268 $ 210,988,177
Unrealized appreciation......................... 75,950,105 3,487,319 53,035,689
------------ ------------ ------------
Total investments, at value (Note 1A)......... $ 258,398,117 $ 33,945,587 $ 264,023,866
Cash.............................................. 3,139 2,781 4,460
Receivable for investments sold................... 783,867 - 10,260,488
Dividends and interest receivable................. 288,534 39,911 316,159
Receivable for refundable foreign taxes withheld.. - - 206,709
Deferred organization expenses (Note 1E).......... 26,580 26,581 26,580
------------ ------------ ------------
Total Assets.................................. $ 259,500,237 $ 34,014,860 $ 274,838,262
------------ ------------ ------------
LIABILITIES:
Foreign cash overdraft............................ $ - $ - $ 3,031,265
Payable for investments purchased................. - 493,763 14,668,424
Payable to Investment Adviser..................... - 29,166 -
Payable for open forward foreign currency exchange
contracts....................................... - - 55,056
Accrued expenses and other liabilities............ 8,106 2,580 36,897
------------ ------------ ------------
Total Liabilities............................... $ 8,106 $ 525,509 $ 17,791,642
------------ ------------ ------------
NET ASSETS APPLICABLE TO
INVESTORS' INTEREST IN PORTFOLIO.................. $ 259,492,131 $ 33,489,351 $ 257,046,620
============= ============= =============
SOURCES OF NET ASSETS:
Net proceeds from capital contributions and
withdrawals..................................... $ 183,542,026 $ 30,002,032 $ 204,018,428
Unrealized appreciation of investments
and foreign currency transactions (computed
on the basis of identified cost)................ 75,950,105 3,487,319 53,028,192
------------ ------------ ------------
Total......................................... $ 259,492,131 $ 33,489,351 $ 257,046,620
============= ============= =============
</TABLE>
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
STATEMENTS OF ASSETS AND LIABILITIES
December 31, 1997
================================================================================
<TABLE>
<CAPTION>
Wright Wright Wright
U.S. Treasury U.S. Treasury Current Income
Near Term Portfolio Portfolio Portfolio
(WNTB) (WUSTB) (WCIF)
- --------------------------------------------------------------------------------------------------------------------------
ASSETS:
Investments --
<S> <C> <C> <C>
Identified cost................................. $ 100,082,303 $ 69,479,253 $ 95,424,670
Unrealized appreciation......................... 978,896 2,684,518 1,735,821
------------ ------------ ------------
Total investments, at value (Note 1A)......... $ 101,061,199 $ 72,163,771 $ 97,160,491
Cash.............................................. 1,948 1,318,946 3,346
Interest receivable............................... 1,775,331 1,030,290 578,673
Deferred organization expenses (Note 1C).......... 25,682 25,680 25,506
Other assets...................................... - - 4,370
------------ ------------ ------------
Total Assets.................................. $ 102,864,160 $ 74,538,687 $ 97,772,386
------------ ------------ ------------
LIABILITIES:
Accrued expenses and other liabilities............ $ 2,721 $ 188 $ 7,000
------------ ------------ ------------
NET ASSETS APPLICABLE TO
INVESTORS' INTEREST IN PORTFOLIO.................. $ 102,861,439 $ 74,538,499 $ 97,765,386
============= ============= =============
SOURCES OF NET ASSETS:
Net proceeds from capital contributions and
withdrawals..................................... $ 101,882,543 $ 71,853,981 $ 96,029,565
Unrealized appreciation of investments
(computed on the basis of identified cost)...... 978,896 2,684,518 1,735,821
------------ ------------ ------------
Total......................................... $ 102,861,439 $ 74,538,499 $ 97,765,386
============= ============= =============
</TABLE>
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
STATEMENTS OF OPERATIONS
Period from the Start of Business, May 2, 1997 to December 31, 1997
================================================================================
<TABLE>
<CAPTION>
Wright Selected Wright Junior Wright International
Blue Chip Blue Chip Blue Chip
Equities Portfolio Equities Portfolio Equities Portfolio
(WBC) (WJBC) (WIBC)
- -------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1B):
Income --
<S> <C> <C> <C>
Dividends....................................... $ 2,639,245 $ 166,665 $ 3,695,020
Interest........................................ 179,063 29,900 206,116
Less: Foreign taxes............................. - - (441,511)
------------ ------------ ------------
Total income.................................. $ 2,818,308 $ 196,565 $ 3,459,625
------------ ------------ ------------
Expenses --
Investment Adviser fee (Note 2)................. $ 1,019,152 $ 74,633 $ 1,441,589
Custodian fee (Note 1D)......................... 46,028 18,207 196,703
Legal fees...................................... - 220 -
Interest expense................................ 12 - 8,075
Audit fees...................................... 1,000 1,000 1,000
Amortization of organization expenses (Note 1C). 3,794 3,794 3,794
Miscellaneous................................... - 11,677 34,530
------------ ------------ ------------
Total expenses................................ $ 1,069,986 $ 109,531 $ 1,685,691
------------ ------------ ------------
Deduct -- .....................................
Reduction of Investment Adviser fee
(Note 2)................................... $ - $ 44,357 $ -
Reduction of custodian fee (Note 1D).......... - 4,062 -
------------ ------------ ------------
Total deductions........................... $ - $ 48,419 $ -
------------ ------------ ------------
Net expenses............................. $ 1,069,986 $ 61,112 $ 1,685,691
------------ ------------ ------------
Net investment income................. $ 1,748,322 $ 135,453 $ 1,773,934
------------ ------------ ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Net realized gain on investment and foreign currency
transactions (identified cost basis)............ $ 19,731,212 $ 1,729,605 $ 14,916,066
Change in unrealized appreciation (depreciation) of
investments and translation of assets and liabilities in
foreign currencies.............................. 30,193,816 1,275,330 (6,279,704)
------------ ------------ ------------
Net realized and unrealized gain on investments
and foreign currency............................ $ 49,925,028 $ 3,004,935 $ 8,636,362
------------ ------------ ------------
Net increase in net assets from operations.... $ 51,673,350 $ 3,140,388 $ 10,410,296
============= ============= =============
</TABLE>
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
STATEMENTS OF OPERATIONS
Period from the start of business, May 2, 1997 to December 31, 1997
================================================================================
<TABLE>
<CAPTION>
Wright Wright Wright
U.S. Treasury U.S. Treasury Current Income
Near Term Portfolio Portfolio Portfolio
(WNTB) (WUSTB) (WCIF)
- -----------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1B):
Income --
<S> <C> <C> <C>
Interest income................................. $ 4,943,208 $ 2,741,783 $ 4,388,821
------------ ------------ ------------
Expenses --
Investment Adviser fee (Note 2)................. $ 301,140 $ 179,562 $ 245,848
Custodian fees (Note 1D)........................ 31,653 66,114 14,722
Audit fees...................................... 1,000 - 1,000
Legal fees...................................... - - 220
Amortization of organization expenses (Note 1C). 3,826 3,788 3,828
Miscellaneous................................... - - 27,053
------------ ------------ ------------
Total expenses................................ $ 337,619 $ 249,464 $ 292,671
------------ ------------ ------------
Deduct --
Reduction of custodian fee (Note 1D)............ $ (5,291) $ (66,114) $ -
------------ ------------ ------------
Net expenses.................................. $ 332,328 $ 183,350 $ 292,671
------------ ------------ ------------
Net investment income................. $ 4,610,880 $ 2,558,433 $ 4,096,150
------------ ------------ ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Net realized loss on investment
transactions (identified cost basis)............ $ (75,865) $ - $ (56,605)
Net change in unrealized appreciation (depreciation)
of investments.................................. 771,013 3,393,339 2,551,399
------------ ------------ ------------
Net realized and unrealized gain on investments... $ 695,148 $ 3,393,339 $ 2,494,794
------------ ------------ ------------
Net increase in net assets from operations.... $ 5,306,028 $ 5,951,772 $ 6,590,944
============= ============= =============
</TABLE>
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
STATEMENTS OF CHANGES IN NET ASSETS
For the period from the start of business May 2, 1997 to December 31, 1997
================================================================================
<TABLE>
<CAPTION>
Wright Selected Wright Junior Wright International
Blue Chip Blue Chip Blue Chip
Equities Portfolio Equities Portfolio Equities Portfolio
(WBC) (WJBC) (WIBC)
- -------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From Operations --
<S> <C> <C> <C>
Net investment income........................... $ 1,748,322 $ 135,453 $ 1,773,934
Net realized gain on investments................ 19,731,212 1,729,605 14,916,066
Change in unrealized appreciation (depreciation)
of investments................................ 30,193,816 1,275,330 (6,279,704)
------------ ------------ ------------
Increase in net assets from operations........ $ 51,673,350 $ 3,140,388 $ 10,410,296
------------ ------------ ------------
Capital transactions --
Contributions................................... $ 249,862,313 $ 34,412,901 $ 388,886,471
Withdrawals..................................... (42,043,542) (4,063,948) (142,250,157)
------------ ------------ ------------
Increase in net assets
resulting from capital transactions........ $ 207,818,771 $ 30,348,953 $ 246,636,314
------------ ------------ ------------
Net increase in net assets.................... $ 259,492,121 $ 33,489,341 $ 257,046,610
NET ASSETS:
At beginning of period............................ 10 10 10
------------ ------------ ------------
At end of period.................................. $ 259,492,131 $ 33,489,351 $ 257,046,620
============= ============= =============
</TABLE>
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
STATEMENTS OF CHANGES IN NET ASSETS
For the period from the start of business May 2, 1997 to December 31, 1997
================================================================================
<TABLE>
<CAPTION>
Wright Wright Wright
U.S. Treasury U.S. Treasury Current Income
Near Term Portfolio Portfolio Portfolio
(WNTB) (WUSTB) (WCIF)
- -------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From Operations --
<S> <C> <C> <C>
Net investment income........................... $ 4,610,880 $ 2,558,433 $ 4,096,150
Net realized loss on investments................ (75,865) - (56,605)
Change in unrealized appreciation (depreciation)
of investments................................ 771,013 3,393,339 2,551,399
------------ ------------ ------------
Increase in net assets from operations........ $ 5,306,028 $ 5,951,772 $ 6,590,944
------------ ------------ ------------
Capital transactions --
Contributions................................... 136,940,825 76,417,800 117,569,110
Withdrawals..................................... (39,385,424) (7,831,083) (26,394,678)
------------ ------------ ------------
Increase in net assets
resulting from capital transactions........ $ 97,555,401 $ 68,586,717 $ 91,174,432
------------ ------------ ------------
Net increase in net assets.................... $ 102,861,429 $ 74,538,489 $ 97,765,376
NET ASSETS:
At beginning of period............................ 10 10 10
------------ ------------ ------------
At end of period.................................. $ 102,861,439 $ 74,538,499 $ 97,765,386
============= ============= =============
</TABLE>
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
WRIGHT MANAGED EQUITY TRUST PORTFOLIOS
For the period from the start of business May 2, 1997 to December 31, 1997
================================================================================
<TABLE>
<CAPTION>
Wright Selected Wright Junior Wright International
Blue Chip Blue Chip Blue Chip
Equities Portfolio Equities Portfolio Equities Portfolio
SUPPLEMENTARY DATA (WBC) (WJBC) (WIBC)
- -----------------------------------------------------------------------------------------------------------------------------
Ratios (As of percentage of average daily net assets)++:
<S> <C> <C> <C> <C>
Net expenses(1) .................................. 0.66%+ 0.48%+ 0.90%+
Net investment income............................. 1.08%+ 0.99%+ 0.95%+
Portfolio Turnover................................... 28% 36% 37%
Net assets, end of period (000 omitted).............. $ 259,492 $ 33,489 $ 257,047
Average commission rate paid(2) ..................... $ 0.0500 $ 0.0508 $ 0.0346
++ The operating expense of WJBC reflects a reduction of the investment
adviser fee. Had such action not been taken, the ratios would have been as
follows:
Ratios (As of percentage of average daily net assets):
Expenses ......................................... 0.80%+
------------
Net investment income............................. 0.67%+
------------
+ Annualized.
(1) The expense ratios for the Portfolios have been adjusted to reflect a
change in reporting requirements. The new reporting guidelines require each
Portfolio to increase its expense ratio by the effect of any offset
arrangements with its service providers. The computation of net expenses to
average daily net assets reported above is computed without consideration
of credits in such offset arrangements. If these credits were considered,
the ratio of net expenses to average daily net assets would have been
reduced to 0.45% for WJBC.
(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.
</TABLE>
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
WRIGHT MANAGED INCOME TRUST PORTFOLIOS
For the period from the start of business May 2, 1997 to December 31, 1997
================================================================================
<TABLE>
<CAPTION>
Wright Wright Wright
U.S. Treasury U.S. Treasury Current Income
Near Term Portfolio Portfolio Portfolio
SUPPLEMENTARY DATA (WNTB) (WUSTB) (WCIF)
- -------------------------------------------------------------------------------------------------------------------------------
Ratios (As of percentage of average daily net assets):
<S> <C> <C> <C> <C>
Net expenses(1) .................................. 0.46%+ 0.56%+ 0.48%+
Net investment income............................. 6.24%+ 6.11%+ 6.66%+
Portfolio Turnover................................... 0% 0% 7%
Net assets, end of period (000 omitted).............. $ 102,861 $ 74,538 $ 97,765
(1) The expense ratios for the Portfolios have been adjusted to reflect a
change in reporting requirements. The new reporting guidelines require each
Portfolio to increase its expense ratio by the effect of any offset
arrangements with its service providers. The computation of net expenses to
average daily net assets reported above is computed without consideration
of credits in such offset arrangements. If these credits were considered,
the ratio of net expenses to average daily net assets would have been
reduced to 0.45% and 0.41% for WNTB and WUSTB, respectively.
+ Annualized.
</TABLE>
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
NOTES TO FINANCIAL STATEMENTS
================================================================================
(1) SIGNIFICANT ACCOUNTING POLICIES
The Wright Blue Chip Master Portfolio Trust (the Trust), issuer of Selected
Blue Chip Equities Portfolio (Selected Portfolio), Junior Blue Chip Equities
Portfolio (Junior Portfolio), International Blue Chip Equities Portfolio
(International Portfolio), U.S. Treasury Near Term Portfolio (Term Portfolio),
U.S. Treasury Portfolio (Treasury Portfolio), and Current Income Portfolio
(Income Portfolio), collectively the Portfolios, are registered under the
Investment Company Act of 1940 as non-diversified open-end management investment
companies which were organized as trusts under the laws of the State of New York
on March 18, 1997. The Declaration of Trust permits the Trustees to issue
interests in the Portfolios. Investment operations began on May 2, 1997 for each
of the Funds with the acquisition of investments in exchange for an interest in
the Portfolio. The value of these investments were $212,366,581 including
unrealized appreciation of $45,756,289 for the Selected Portfolio, $11,806,552
including unrealized appreciation of $2,211,989 for the Junior Portfolio,
$277,170,635 including unrealized appreciation of $59,341,981 for the
International Portfolio, $53,513,062 including unrealized depreciation of
($708,821) for the Treasury Portfolio, $119,962,291 including unrealized
appreciation of $207,883 for the Term Portfolio, and $77,756,716 including
unrealized depreciation of ($815,577) for the Income Portfolio. The following is
a summary of significant accounting policies of the Portfolios. 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 latest bid and asked prices. Short-term
obligations maturing in sixty days or less are valued at amortized cost,
which approximates market 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.
The Trust does not isolate that portion of the results of operations
resulting from changes in foreign exchange rates on investments from the
fluctuations arising from changes in market prices of securities held. Such
fluctuations are included with the net realized and unrealized gain or loss
from investments.
C. Deferred Organization Expenses -- Costs incurred by a Portfolio in
connection with its organization are being amortized on the straight-line
basis over five years beginning on the date each Portfolio commenced
operations.
D. Expense Reductions -- The Portfolios 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.
E. Income Taxes -- The Portfolios are treated as partnerships for federal
tax purposes. No provision is made by the Portfolios for federal or state taxes
on any taxable income of the Portfolios because each investor in the Portfolios
is ultimately responsible for the payment of any taxes on its share of such
income. Since some of the Portfolios' investors are regulated investment
companies that invest all or substantially all of their assets in the
Portfolios, the Portfolios normally must satisfy the applicable source of income
and diversification requirements (under the Internal Revenue Code) in order for
their respective investors to satisfy them. The Portfolios will allocate at
least annually among their respective investors each investor's distributive
share of the Portfolios' net taxable investment income, net realized capital
gains and any other items of income, gain, loss, deductions or credit.
<PAGE>
F. Use of Estimates -- The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported
amounts of revenue and expense during the reporting period. Actual results
could differ from those estimates.
G. Other -- Investment transactions are accounted for on the date the
investments are purchased or sold. Dividend income is recorded on the
ex-dividend date. However, if the ex-dividend date has passed, certain
dividends from foreign securities are recorded as the Portfolio is informed
of the ex-dividend date. 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 interest income is accrued
ratably to the date of maturity on the investments of the Portfolios.
H. Forward Foreign Currency Contracts -- The International Portfolio may enter
into forward foreign currency exchange contracts for the purchase or sale
of a specific foreign currency at a fixed price on a future date. Risks may
arise upon entering these contracts from the potential inability of
counterparties to meet the terms of their contracts and from unanticipated
movements in the value of a foreign currency relative to the U.S. dollar.
The International Portfolio will enter into forward contracts for hedging
purposes in connection with purchases and sales of securities denominated
in foreign currencies. The forward foreign currency exchange contracts are
adjusted by the daily forward exchange rate of the underlying currency and
any gains or losses are recorded for financial statement purposes as
unrealized until such time as the contracts have been closed or offset.
(2) INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The Trust has engaged The Winthrop Corporation (Winthrop) to act as
investment adviser to the Funds pursuant to the respective Investment Advisory
Contracts. Pursuant to a service agreement between Winthrop and its wholly-owned
subsidiary, Wright Investors' Service, Inc. (Wright), Wright furnishes each Fund
with investment management, investment advisory, and other services. For its
services, Wright is compensated based upon a percentage of average daily net
assets, which rate is adjusted as average daily net assets exceed certain
levels. For the period from the start of business, May 2, 1997 to December 31,
1997, the effective annual rate was 0.63% for the Selected Portfolio, 0.55% for
the Junior Portfolio, 0.77% for the International Portfolio, 0.40% for the Term
Portfolio, 0.40% for the Treasury Portfolio, and 0.42% for the Income Portfolio.
To enhance the net income of the Fund, Wright made a reduction of its investment
adviser fee by $44,357 for the Junior Portfolio.
Certain of the Trustees and officers of the Portfolio are Trustees or
officers of the above organizations. Except as to Trustees of the Portfolios who
are not affiliated with Wright, Trustees and officers receive remuneration for
their services to the Portfolios out of the fees paid to Wright.
(3) INVESTMENTS
The Term Portfolio, Treasury Portfolio, and Income Portfolio invest
primarily in debt securities. The ability of the issuers of these debt
securities held by the Portfolios to meet their obligations may be affected by
economic developments in a specific industry or municipality. Purchases and
sales of investments, other than U.S. Government securities and short-term
obligations, for the period from the start of business, May 2, 1997 to December
31, 1997 were as follows:
<PAGE>
<TABLE>
<CAPTION>
Selected Junior International U.S. Treasury U.S. Current
Blue Chip Blue Chip Blue Chip Near Term Treasury Income
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Purchases - Non-U.S. Gov't Obligations $66,159,121 $25,159,847 $ 99,732,049 $ -- $ -- $ --
=========== =========== =========== =========== =========== ===========
Purchases - U.S. Gov't Obligations $ -- $ -- -- $26,470,000 $15,222,172 $21,909,770
=========== =========== =========== =========== =========== ===========
Sales - Non-U.S. Gov't Obligations $75,662,613 $ 7,366,622 $134,288,795 $ -- $ -- $ --
=========== =========== =========== =========== =========== ===========
Sales - U.S. Gov't. Obligations $ -- $ -- $ -- $47,574,534 $ -- $ --
=========== =========== =========== =========== =========== ===========
</TABLE>
In addition, for the period from May 2, 1997 to December 31, 1997,
investments having an aggregate market value of $15,583,913 at dates of
withdrawal were distributed in payment for capital withdrawals resulting in
capital gains for book purposes of $446,035 for WBC.
(4) FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES
The cost and unrealized appreciation (depreciation) of the investment
securities owned at December 31, 1997, as computed on a federal income tax
basis, are as follows:
<TABLE>
<CAPTION>
Selected Junior International U.S. Treasury U.S. Current
Blue Chip Blue Chip Blue Chip Near Term Treasury Income
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Aggregate cost $ 182,450,091 $ 30,458,268 $213,792,170 $100,082,303 $ 69,479,253 $ 95,424,670
============ ============ ============ ============ ============ ============
Gross unrealized appreciation $ 79,256,756 $ 5,078,570 $ 61,322,681 $ 1,365,805 $ 2,721,307 $ 2,097,288
Gross unrealized depreciation 3,308,730 1,591,251 11,090,985 (386,909) (36,789) (361,467)
----------- ----------- ----------- ----------- ----------- -----------
Net unrealized appreciation $ 75,948,026 $ 3,487,319 $ 50,231,696 $ 978,896 $ 2,684,518 $ 1,735,821
============ ============ ============ ============ ============ ============
</TABLE>
(5) FINANCIAL INSTRUMENTS
The Portfolios 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 contracts
for the International Portfolio. The notional or contractual amounts of these
instruments represent the investment the Portfolio has 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, 1997 the International Portfolio had the following
forward foreign currency exchange contracts open:
<TABLE>
<CAPTION>
SALES
Settlement Contracts In Exchange for Contracts Net Unrealized
Date Currency to Deliver (U.S. Dollars) at Value Appreciation
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1/05/98 German Deutsche Mark 1,598,545 $ 891,896 $ 889,339 $ 2,557
1/02/98 Great British Pound 35,089 58,413 57,981 432
1/06/98 Great British Pound 291,197 486,590 481,073 5,517
1/07/98 Great British Pound 804,733 1,331,430 1,329,397 2,033
1/02/98 New Mexican Peso 124,405 15,416 15,349 67
1/07/98 Swedish Krona 19,084,968 2,429,968 2,405,928 24,040
------------ ------------ ------------
$ 5,213,713 $ 5,179,067 $ 34,646
=========== =========== ===========
PURCHASES
Settlement Contracts In Exchange for Contracts Net Unrealized
Date Currency to Receive (U.S. Dollars) at Value Depreciation
- ----------------------------------------------------------------------------------------------------------------------------------
1/06/98 Danish Krone 1,666,574 $ 244,760 $ 243,391 $ 1,369
1/02/98 Finnish Markka 2,964,162 547,651 544,285 3,366
1/30/98 French Franc 17,578,218 2,939,309 2,929,093 10,216
1/07/98 Great British Pound 320,108 529,619 528,811 808
1/05/98 Hong Kong Dollar 9,888,784 1,276,384 1,276,027 357
1/02/98 Italian Lira 5,782,380,255 3,314,350 3,270,503 43,847
1/05/98 Italian Lira 1,916,737,012 1,102,619 1,084,066 18,553
1/05/98 Netherlands Gilder 1,374,048 681,910 678,261 3,649
1/06/98 Netherlands Gilder 2,497,243 1,240,250 1,232,774 7,476
1/06/98 South African Rand 4,095,689 843,277 843,216 61
------------ ------------ ------------
$ 12,720,129 $ 12,630,427 $ 89,702
=========== =========== ===========
</TABLE>
At December 31, 1997, the International Portfolio had sufficient cash
and/or securities to cover any commitments under these contracts.
(6) RISKS ASSOCIATED WITH FOREIGN INVESTMENTS
The International Portfolio's investing in securities issued by companies whose
principal business activities are outside the United States may involve
significant risks not present in domestic investments. For example, there is
generally less publicly available information about foreign companies,
particularly those not subject to the disclosure and reporting requirements of
the U.S. securities laws. Foreign issuers are generally not bound by uniform
accounting, auditing, and financial reporting requirements and standards of
practice comparable to those applicable to domestic issuers. Investments in
foreign securities also involve the risk of possible adverse changes in
investment or exchange control regulations, expropriation or confiscatory
taxation, limitation on the removal of funds or other assets of International
Portfolio, political or financial instability or diplomatic and other
<PAGE>
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 International Portfolio's assets. International Portfolio may be
unable to sell securities where the registration process is incomplete and may
experience delays in receipt of dividends.
(7) LINE OF CREDIT
The Funds participate with other funds managed by Wright in a committed $20
million unsecured line of credit agreement with a bank. The Funds may
temporarily borrow from the line of credit to satisfy redemption requests or
settle investment transactions. Interest is charged to each Fund based on its
borrowings at an amount above the federal funds' rate. In addition, a fee
computed at an annual rate of 0.10% on the average daily unused portion of the
$20 million line of credit, is allocated among the participating funds at the
end of each quarter. The Funds did not have significant borrowings or allocated
fees during the period ended December 31, 1997.
<PAGE>
INDEPENDENT AUDITORS' REPORT
================================================================================
To the Trustees and Investors of
The Wright Blue Chip Master Portfolio Trust:
We have audited the accompanying statements of assets and liabilities,
including the portfolios of investments, of The Wright Blue Chip Master
Portfolio Trust (the Trust) (comprising, respectively, of Wright
Selected Blue Chip Equities Portfolio, Wright Junior Blue Chip Equities
Portfolio, Wright International Blue Chip Equities Portfolio, Wright
U.S. Treasury Near Term Portfolio, Wright U.S. Treasury Portfolio, and
Wright Current Income Portfolio) as of December 31, 1997, the related
statements of operations, statements of changes in net assets and
supplementary data for the period from the start of business May 2,
1997, to December 31, 1997. These financial statements and
supplementary data are the responsibility of the Trust's management.
Our responsibility is to express an opinion on these financial
statements and supplementary data 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 supplementary data 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, 1997, 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 supplementary data
present fairly, in all material respects, the financial position of
each of the aforementioned funds of The Wright Blue Chip Master
Portfolio Trust as of December 31, 1997, the results of their
operations, the changes in their net assets, and their supplementary
data for the period from the start of business, May 2, 1997, to
December 31, 1997 in conformity with generally accepted accounting
principles.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
January 30, 1998
<PAGE>
WRIGHT MAJOR BLUE CHIP EQUITIES FUND (WMBC)
PORTFOLIO OF INVESTMENTS
December 31, 1997
================================================================================
Shares Value
Equity Interests -- 94.6%
APPAREL -- 2.4%
VF Corp............................. 14,200 $ 652,313
-----------
AUTOMOTIVE -- 6.1%
Chrysler Corporation................ 15,300 $ 538,368
Eaton Corp.......................... 6,800 606,900
Johnson Controls.................... 11,600 553,900
-----------
$ 1,699,168
-----------
BEVERAGES -- 1.9%
Anheuser Busch Co................... 12,200 $ 536,800
-----------
CHEMICALS -- 9.4%
Air Products & Chemicals............ 6,900 $ 567,525
Morton International Inc............ 14,200 488,125
PPG Industries...................... 9,100 519,837
Rohm & Haas Co...................... 5,900 564,925
Sherwin Williams Co................. 16,500 457,875
-----------
$ 2,598,287
-----------
CONSTRUCTION -- 1.5%
Caterpillar Tractor Inc............. 8,800 $ 427,350
-----------
DIVERSIFIED -- 1.1%
Tyco Lab............................ 6,600 $ 297,413
-----------
DRUGS, COSMETICS & HEALTH CARE -- 2.5%
Bristol-Myers Squibb Co............. 7,200 $ 681,300
-----------
ELECTRONICS -- 10.0%
Adobe Systems Inc................... 10,600 $ 437,250
Applied Materials Inc*.............. 10,600 319,325
Compaq Computer..................... 9,200 519,225
EMC Corp./Mass*..................... 20,600 565,212
Raytheon Co......................... 9,700 489,850
Sun Microsystems, Inc*.............. 11,200 446,600
-----------
$ 2,777,462
-----------
FINANCIAL -- 14.2%
American Express Co................. 7,400 $ 660,450
American International Group........ 5,550 603,563
Fannie Mae.......................... 12,600 718,988
Jefferson-Pilot Corp................ 7,800 607,425
Key Corp. (New)..................... 9,800 693,962
MBIA, Inc........................... 9,600 641,400
-----------
$ 3,925,788
-----------
FOOD -- 2.5%
Sara Lee Corp....................... 12,400 $ 698,275
-----------
MACHINERY & EQUIPMENT -- 9.1%
Deere & Co.......................... 10,400 $ 606,450
Dover Corp.......................... 15,800 570,775
Ingersoll Rand Co................... 15,450 625,725
Pitney-Bowes Inc.................... 7,900 710,506
-----------
$ 2,513,456
-----------
METAL PRODUCERS -- 1.6%
Nucor Corp.......................... 9,000 $ 434,813
-----------
METAL PRODUCTS MANUFACTURERS -- 2.0%
Illinois Tool Works Inc............. 9,400 $ 565,175
-----------
OIL, GAS, COAL & RELATED SERVICES -- 2.0%
Exxon Corp.......................... 9,100 $ 556,806
-----------
PRINTING & PUBLISHING -- 2.4%
Gannett Co. Inc..................... 10,600 $ 655,213
-----------
RECREATION -- 2.0%
Hasbro Inc.......................... 18,000 $ 567,000
-----------
<PAGE>
RETAILERS -- 12.4%
Costco Companies Inc*............... 15,100 $ 673,838
Gap, Inc. (The)..................... 20,400 722,925
May Dept. Stores.................... 9,700 511,069
Rite-Aid Corporation................ 8,200 481,238
Toys R Us, Inc*..................... 16,800 528,150
Wal-Mart Stores..................... 13,500 532,405
-----------
$ 3,449,625
-----------
TRANSPORTATION -- 2.2%
Southwest Airlines.................. 24,600 $ 605,775
-----------
UTILITIES -- 9.3%
Alltel Corporation.................. 15,800 $ 648,788
AmeriTech Corp...................... 8,100 652,050
Bell Atlantic Corp.................. 7,700 700,700
Sprint Corp......................... 9,700 568,662
-----------
$ 2,570,200
-----------
TOTAL EQUITY INTERESTS -- 94.6%
(identified cost, $19,914,391) $ 26,212,219
Reserve Funds -- 3.5%
Face Amount
American Express Corp., 6.652%, 1/02/98
(at amortized cost)...............$980,000 $ 980,000
-----------
TOTAL INVESTMENTS -- 98.1%
(identified cost, $20,894,391) $ 27,192,219
OTHER ASSETS,
LESS LIABILITIES -- 1.9% 528,527
-----------
NET ASSETS -- 100% $ 27,720,746
============
* Non-income-producing security.
See notes to financial statements
<PAGE>
WRIGHT TOTAL RETURN BOND FUND (WTRB)
PORTFOLIO OF INVESTMENTS
December 31, 1997
================================================================================
<TABLE>
<CAPTION>
Face Coupon Maturity Market Current Yield To
Amount Description Rate Date Price Value Yield(1) Maturity(1)
- ------------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS
FINANCIAL
- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 2,000,000 Associates Corp. 6.450% 10/15/2001 $100.717 $ 2,014,340 6.40% 6.23%
2,825,000 General Elec. Capital Corp. 6.500% 11/01/2006 101.574 2,869,465 6.40% 6.26%
2,000,000 GMAC 6.375% 10/15/2004 99.067 1,981,340 6.44% 6.55%
2,675,000 IBM Credit Corp. 6.200% 08/28/2000 99.995 2,674,866 6.20% 6.20%
1,000,000 J.P. Morgan 6.875% 01/15/2007 102.230 1,022,300 6.73% 6.54%
INDUSTRIALS
- -----------
$ 2,400,000 McDonald's Corp. 6.500% 08/01/2007 $101.965 $ 2,447,160 6.38% 6.22%
2,000,000 Walt Disney Co. 6.750% 03/30/2006 103.209 2,064,180 6.54% 6.24%
UTILITIES
- -----------
$ 2,000,000 SBC Communications Inc. 6.625% 11/01/2009 $101.806 $ 2,036,120 6.51% 6.40%
----------
Total Corporate Bonds (identified cost, $17,006,227)-- 21.4% $17,109,771
GOVERNMENT INTERESTS
U.S. GOVERNMENT AGENCIES
- --------------------------
$ 1,000,000 Federal Home Loan Mtg. Corp. 7.000% 11/23/2007 $ 99.406 $ 994,060 7.05% 7.09%
1,500,000 Federal National. Mtg. Assn. 6.560% 11/26/2007 100.406 1,506,090 6.53% 6.50%
2,000,000 Federal National Mtg. Assn. 6.400% 11/09/2004 100.094 2,001,880 6.39% 6.38%
1,485,000 GNMA 6.5% 460726 6.500% 12/15/2027 98.968 1,469,675 6.57% N/C
U.S. TREASURIES
- ----------------
$ 9,475,000 U.S. Treasury Bond 7.250% 05/15/2016 $113.906 $10,792,594 6.37% 5.99%
1,300,000 U.S. Treasury Bond 6.250% 08/15/2023 103.000 1,339,000 6.07% 6.02%
2,000,000 U.S. Treasury Bond 8.250% 05/15/2005 105.328 2,106,560 7.83% 7.30%
2,000,000 U.S. Treasury Note 5.875% 11/15/99 100.359 2,007,180 5.85% 5.67%
1,900,000 U.S. Treasury Note 5.875% 06/30/2000 100.453 1,908,607 5.85% 5.68%
2,500,000 U.S. Treasury Note 5.750% 10/31/2000 100.125 2,503,125 5.74% 5.70%
3,000,000 U.S. Treasury Note 7.750% 02/15/2001 105.734 3,172,020 7.33% 5.72%
5,400,000 U.S. Treasury Note 6.250% 02/15/2003 102.266 5,522,364 6.11% 5.74%
1,700,000 U.S. Treasury Note 7.500% 02/15/2005 109.906 1,868,402 6.82% 5.78%
6,475,000 U.S. Treasury Note 6.500% 05/15/2005 104.250 6,750,188 6.24% 5.78%
10,100,000 U.S. Treasury Note 6.500% 08/15/2005 104.344 10,538,744 6.23% 5.79%
600,000 U.S. Treasury Note 5.875% 11/15/2005 100.531 603,186 5.84% .5.79%
200,000 U.S. Treasury Note 5.625% 02/15/2006 98.875 197,750 5.69% 5.80%
4,000,000 U.S. Treasury Note 6.500% 10/15/2006 104.703 4,188,120 6.21% 5.81%
2,000,000 U.S. Treasury Note 6.250% 02/15/2007 103.187 2,063,740 6.06% 5.79%
----------
Total Government Interests (identified cost, $59,041,573)-- 76.9% $61,533,285
COMMERCIAL PAPER - 0.3%
- --------------------------
$ 265,000 AMERICAN EXPRESS CORP 6.652% 01/02/98 $ 265,000 6.65% 6.65%
----------
Total Investments (identified cost, $76,312,800)-- 98.6% $78,908,056
Other Assets, Less Liabilities -- 1.4% 1,095,607
----------
Net Assets -- 100.0% $80,003,663
============
Average Maturity -- 8.9 Years (1)
(1) Unaudited.
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT U.S. TREASURY MONEY MARKET FUND (WTMM)
PORTFOLIO OF INVESTMENTS
December 31, 1997
================================================================================
Face Interest Maturity
Amount Issuer Rate Date Value
- -------------------------------------------------------------------------------
$2,000,000 U.S. Treasury Note 5.125% 11/30/98 $ 2,000,723
2,000,000 U.S. Treasury Note 5.125% 12/31/98 1,990,649
3,500,000 U.S. Treasury Bills 5.170% 01/08/98 3,496,483
1,300,000 U.S. Treasury Bills 4.985% 01/08/98 1,298,739
800,000 U.S. Treasury Bills 5.290% 02/05/98 795,886
1,300,000 U.S. Treasury Bills 5.080% 02/05/98 1,293,579
200,000 U.S. Treasury Bills 5.130% 02/05/98 199,003
300,000 U.S. Treasury Bills 5.160% 02/05/98 298,495
2,700,000 U.S. Treasury Bills 5.010% 02/05/98 2,686,849
3,400,000 U.S. Treasury Bills 5.020% 03/05/98 3,370,130
2,100,000 U.S. Treasury Bills 5.040% 03/05/98 2,081,478
600,000 U.S. Treasury Bill 5.000% 03/05/98 594,749
3,700,000 U.S. Treasury Bill 5.160% 04/30/98 3,636,890
500,000 U.S. Treasury Bills 5.250% 04/30/98 491,323
2,000,000 U.S. Treasury Bills 5.140% 04/30/98 1,966,019
1,450,000 U.S. Treasury Bills 5.150% 10/15/98 1,390,467
500,000 U.S. Treasury Bills 5.150% 10/15/98 479,472
2,400,000 U.S. Treasury Bills 5.170% 10/15/98 2,301,081
2,600,000 U.S. Treasury Bills 5.070% 01/02/98 2,599,634
2,300,000 U.S. Treasury Bills 4.990% 01/02/98 2,299,681
4,100,000 U.S. Treasury Bills 5.120% 01/15/98 4,091,837
1,600,000 U.S. Treasury Bills 5.035% 01/15/98 1,596,867
2,600,000 U.S. Treasury Bills 5.130% 01/22/98 2,592,220
300,000 U.S. Treasury Bills 4.970% 01/22/98 299,130
2,500,000 U.S. Treasury Bills 4.930% 01/22/98 2,492,810
600,000 U.S. Treasury Bills 5.150% 01/22/98 598,197
2,800,000 U.S. Treasury Bills 5.185% 02/12/98 2,783,062
1,200,000 U.S. Treasury Bills 4.960% 02/12/98 1,193,056
300,000 U.S. Treasury Bills 5.110% 02/12/98 298,211
$ 700,000 U.S. Treasury Bills 5.060% 02/12/98 695,868
2,800,000 U.S. Treasury Bills 4.950% 02/19/98 2,781,135
300,000 U.S. Treasury Bills 4.970% 02/19/98 297,971
400,000 U.S. Treasury Bills 5.000% 02/19/98 397,278
900,000 U.S. Treasury Bills 5.030% 02/19/98 893,839
1,550,000 U.S. Treasury Bills 4.950% 02/26/98 1,538,065
3,500,000 U.S. Treasury Bills 4.920% 02/26/98 3,473,213
2,300,000 U.S. Treasury Bills 5.080% 03/12/98 2,277,281
2,600,000 U.S. Treasury Bills 5.020% 03/12/98 2,574,621
2,000,000 U.S. Treasury Bills 5.150% 03/12/98 1,979,973
2,400,000 U.S. Treasury Bills 5.050% 03/19/98 2,374,077
1,600,000 U.S. Treasury Bills 5.075% 03/19/98 1,582,632
2,000,000 U.S. Treasury Bills 5.160% 03/19/98 1,977,927
2,600,000 U.S. Treasury Bills 5.160% 03/26/98 2,568,696
800,000 U.S. Treasury Bills 5.140% 04/09/98 788,806
400,000 U.S. Treasury Bills 5.130% 04/09/98 394,414
800,000 U.S. Treasury Bills 5.150% 04/09/98 788,784
5,000,000 U.S. Treasury Bills 5.130% 04/16/98 4,925,188
3,650,000 U.S. Treasury Bills 5.130% 04/23/98 3,591,746
----------
TOTAL INVESTMENTS
AT AMORTIZED COST -- 100.1% $87,118,234
Other Assets, less Liabilities -- (0.1%) (59,458)
----------
Net Assets -- 100.0% $87,058,776
===========
<PAGE>
WRIGHT SELECTED BLUE CHIP EQUITIES PORTFOLIO (WBC)
PORTFOLIO OF INVESTMENTS
December 31, 1997
================================================================================
Shares Value
Equity Interests -- 97.4%
APPAREL -- 2.2%
Russell Corp........................ 95,300 $ 2,531,406
VF Corp............................. 68,660 3,154,069
-----------
$ 5,685,475
-----------
AUTOMOTIVE -- 3.1%
Chrysler Corporation................ 48,900 1,720,669
Eaton Corp.......................... 31,000 2,766,750
Johnson Controls.................... 51,000 2,435,250
Modine Mfg. Co...................... 35,700 1,218,262
-----------
$ 8,140,931
-----------
BEVERAGES -- 0.9%
Anheuser Busch...................... 51,500 $ 2,266,000
-----------
CHEMICALS -- 4.9%
Cooper Tire & Rubber Co............. 144,000 $ 3,510,000
Lubrizol Corp....................... 58,600 2,160,875
Morton International Inc............ 45,800 1,574,375
PPG Industries...................... 41,500 2,370,687
Rohm & Haas Co...................... 33,600 3,217,200
-----------
$ 12,833,137
-----------
CONSTRUCTION -- 9.0%
Caterpillar Tractor, Inc............ 60,200 $ 2,923,463
Clayton Homes....................... 75,000 1,350,000
Fleetwood Enterprises, Inc.......... 86,900 3,687,819
Jacobs Engineering Group*........... 104,500 2,651,688
Medusa Corporation.................. 64,100 2,680,181
Oakwood Homes Corp.................. 76,600 2,542,163
Toll Brothers*...................... 146,500 3,918,875
Vulcan Materials Co................. 34,500 3,523,311
-----------
$ 23,277,500
-----------
DIVERSIFIED -- 4.9%
Carllisle Corp...................... 30,000 $ 1,282,500
Crane Company....................... 61,100 2,650,212
General Signal Corp................. 72,500 3,058,594
Lancaster Colony Corp............... 45,000 2,536,875
Teleflex, Incorporated.............. 84,000 3,171,000
-----------
$ 12,699,181
-----------
ELECTRONICS -- 6.6%
Compaq Computer*.................... 48,550 $ 2,740,040
Dallas Semiconductor Corp........... 87,600 3,569,700
EMC Corp./Mass*..................... 130,000 3,566,875
Raytheon Co......................... 46,260 2,336,130
Stratus Computer Inc*............... 64,000 2,420,000
Sun Microsystems Inc*............... 65,000 2,591,875
-----------
$ 17,224,620
-----------
FINANCIAL -- 19.5%
Allied Group........................ 45,000 $ 1,288,125
AMBAC Inc........................... 79,200 3,643,200
BB&T Corporation.................... 58,400 3,741,250
Commerce Bancshares, Inc............ 55,042 3,729,095
Compass Bancshares.................. 81,750 3,576,562
Edwards (A.G.), Inc................. 123,750 4,919,062
First Security CP................... 112,500 4,710,938
First Virginia Banks Inc............ 66,397 3,431,895
Keycorp............................. 54,000 3,823,875
MBIA Inc............................ 54,000 3,607,875
Pacific Century Financial Corp...... 110,350 2,731,163
Quick and Reilly Group.............. 68,400 2,941,200
Southtrust Corporation.............. 67,100 4,256,656
Zions Bancorp....................... 94,000 4,265,250
-----------
$ 50,666,146
-----------
FOOD -- 1.2%
Universal Foods Corp................ 72,000 $ 3,042,000
-----------
MACHINERY & EQUIPMENT -- 5.9%
Deere & Co.......................... 53,300 $ 3,108,056
Dover Corp.......................... 86,600 3,128,425
Flowserve Corp...................... 95,600 2,670,825
Ingersoll Rand Co................... 73,950 2,994,975
Pitney-Bowes Inc.................... 36,500 3,282,718
-----------
$ 15,184,999
-----------
METAL PRODUCERS -- 0.9%
Carpenter Technology................ 49,200 $ 2,364,675
-----------
<PAGE>
METAL PRODUCTS MANUFACTURERS -- 5.7%
Harsco Corp......................... 75,300 $ 3,247,313
Kaydon Corp......................... 110,000 3,588,750
Snap-on Inc......................... 56,600 2,469,175
Trimas Corp. Common Stock........... 75,000 2,578,125
Trinity Industries.................. 67,200 2,998,800
-----------
$ 14,882,163
-----------
PAPER -- 1.1%
Sonoco Products Co.................. 81,000 $ 2,809,688
-----------
PRINTING & PUBLISHING -- 5.2%
American Greetings Corp............. 76,900 $ 3,008,713
Banta (George) Corp................. 83,748 2,261,196
Gannett Co. Inc..................... 55,560 3,434,303
Lee Enterprises, Inc................ 102,200 3,021,287
Standard Register................... 50,000 1,737,500
-----------
$ 13,462,999
-----------
RECREATION -- 4.6%
Brunswick Corp...................... 100,000 $ 3,031,250
Kingworld Productions Inc........... 57,000 3,291,750
Ryan's Family Steak Houses*......... 296,000 2,534,500
Wendy's International Inc........... 127,000 3,055,938
-----------
$ 11,913,438
-----------
RETAILERS -- 3.8%
Costco Companies Inc*............... 82,500 $ 3,681,563
Lands' End, Inc*.................... 90,000 3,155,625
Toys "R" Us, Inc. Holding Co*....... 94,000 2,955,125
-----------
$ 9,792,313
-----------
TRANSPORTATION -- 3.6%
ASA Holdings, Inc................... 66,600 $ 1,893,938
Comair Holdings, Inc................ 150,000 3,618,750
Illinois Central Corp............... 54,000 1,839,375
Werner Enterprises Inc.............. 100,000 2,050,000
-----------
$ 9,402,063
-----------
UTILITIES -- 9.2%
Aliant Comm Inc..................... 146,000 $ 4,580,750
Ameritech Corp...................... 40,140 3,231,270
Century Telephone Enterprises....... 73,800 3,676,163
Duke Energy Corp.................... 68,400 3,787,650
NIPSCO Industries Inc............... 63,700 3,149,168
Questar Corp........................ 60,000 2,677,500
TECO Energy, Inc.................... 98,000 2,756,250
-----------
$ 23,858,751
-----------
MISCELLANEOUS -- 5.1%
Arrow Electronics, Inc*............. 68,600 $ 2,225,213
Kelly Services...................... 38,000 1,140,000
Leggett & Platt Inc................. 74,600 3,123,875
Marshall Industries................. 76,865 2,305,950
Sierra Health Svcs*................. 87,000 2,925,375
Universal Health Services-Cl. B*.... 31,000 1,561,625
-----------
$ 13,282,038
-----------
TOTAL EQUITY INTERESTS - 97.4%
(identified cost, $176,838,012) $252,788,117
Reserve Funds -- 2.2%
Face Amount
American Express Corp., 6.652%, 1/02/98
(at amortized cost).............$5,610,000 $ 5,610,000
-----------
TOTAL INVESTMENTS -- 99.6%
(identified cost, $182,448,012) $258,398,117
OTHER ASSETS,
LESS LIABILITIES -- 0.4% 1,094,014
-----------
NET ASSETS -- 100% $259,492,131
============
* Non-income-producing security.
See notes to financial statements
<PAGE>
WRIGHT JUNIOR BLUE CHIP EQUITIES PORTFOLIO (WJBC)
PORTFOLIO OF INVESTMENTS
December 31, 1997
================================================================================
Shares Value
Equity Interests -- 98.3%
APPAREL -- 2.7%
Quiksilver, Inc*.................... 31,600 $ 904,550
-----------
AUTOMOTIVE -- 10.0%
Excel Industries Inc................ 14,800 $ 267,325
Myers Industries.................... 42,850 731,128
Simpson Industries.................. 64,900 762,575
TBC Corp*........................... 75,200 719,100
Thor Industries, Inc................ 25,400 871,538
-----------
$ 3,351,666
-----------
CHEMICALS -- 5.8%
AMCOL Int'l. Corp................... 50,400 $ 800,100
Learonal, Inc....................... 29,300 688,550
Spartech Corp....................... 31,500 476,438
-----------
$ 1,965,088
-----------
CONSTRUCTION -- 6.4%
Cavalier Homes, Inc................. 76,700 $ 747,825
Patrick Industries.................. 49,100 724,225
Universal Forest Pr................. 50,600 689,425
-----------
$ 2,161,475
-----------
DIVERSIFIED -- 1.5%
Teleflex, Inc....................... 12,900 $ 486,975
-----------
DRUGS, COSMETICS & HEALTHCARE -- 4.3%
Empi, Inc*.......................... 43,100 $ 851,225
Respironics, Inc*................... 26,600 595,175
-----------
$ 1,446,400
-----------
ELECTRICAL --2.3%
Woodhead Industries Inc............. 40,200 $ 753,750
-----------
ELECTRONICS -- 5.8%
Cohu, Inc........................... 23,400 $ 716,625
In Focus Systems*................... 20,000 607,500
Technitrol, Inc..................... 20,700 621,000
-----------
$ 1,945,125
-----------
FINANCIAL -- 13.1%
Allied Group........................ 14,625 $ 418,640
Centura Banks Inc................... 6,000 414,000
First Commercial Corp............... 11,627 681,633
McDonald & Co. Investments.......... 30,000 851,250
One Valley Bancorp.................. 12,500 484,375
Raymond James Financial Corp........ 21,000 833,437
Westamerica Bancorp................. 6,800 695,300
-----------
$ 4,378,635
-----------
MACHINERY & EQUIPMENT -- 6.5%
Applied Power Inc. Cl. "A".......... 10,500 $ 724,500
CLARCOR Inc......................... 23,900 708,038
Robbins & Myers..................... 19,000 752,875
-----------
$ 2,185,413
-----------
METAL PRODUCTS MANUFACTURERS -- 3.6%
Regal Beloit Corp................... 28,200 $ 833,662
Watts Industries.................... 12,700 359,568
-----------
$ 1,193,230
-----------
PAPER -- 4.1%
Day Runner, Inc*.................... 18,400 $ 745,200
Republic Group, Inc................. 38,900 636,988
-----------
$ 1,382,188
-----------
PRINTING & PUBLISHING -- 7.4%
Banta Corp.......................... 14,625 $ 394,875
Bowne & Co.......................... 20,600 821,425
Central Newspapers Cl A............. 5,900 436,231
Merrill Corp........................ 35,000 813,750
-----------
$ 2,466,281
-----------
RECREATION -- 4.3%
Arctic Cat, Inc..................... 66,800 $ 647,125
Int'l. Dairy Queen*................. 29,200 782,011
-----------
$ 1,429,136
-----------
<PAGE>
RETAILERS -- 4.7%
Dress Barn Inc*..................... 24,900 $ 706,538
Ruddick Corp........................ 49,100 856,181
-----------
$ 1,562,719
-----------
MISCELLANEOUS -- 15.8%
Bush Industries Cl. A............... 31,500 $ 819,000
Franklin Covey Co*.................. 39,200 862,400
Gallagher (Arthur J.)............... 20,900 719,744
Lawson Prods. Inc................... 26,300 782,425
Pioneer Stand Electronics........... 44,900 684,725
Sterling Electronics*............... 24,185 504,862
World Fuel Services Corp............ 43,800 919,800
-----------
$ 5,292,956
-----------
TOTAL EQUITY INTERESTS -- 98.3%
(identified cost, $29,418,268) $ 32,905,587
Reserve Funds -- 3.1%
Face Amount
American Express Corp., 6.652%, 1/02/98
(at amortized cost).............$1,040,000 $ 1,040,000
-----------
TOTAL INVESTMENTS -- 101.4%
(identified cost, $30,458,268) $ 33,945,587
OTHER ASSETS,
LESS LIABILITIES -- (1.4%) (456,236)
-----------
NET ASSETS -- 100.0% $ 33,489,351
============
* Non-income-producing security.
See notes to financial statements
<PAGE>
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES PORTFOLIO (WIBC)
PORTFOLIO OF INVESTMENTS
December 31, 1997
================================================================================
Shares Value
Equity Interests -- 98.3%
AUSTRALIA -- 3.7%
Australian Gas & Light Co........... 375,000 $ 2,613,943
Coles Myer Ltd ADR................. 62,551 2,439,489
F.H. Faulding (U.K.)................ 421,352 2,108,081
Lend Lease Corp. Ltd................ 120,844 2,361,714
-----------
$ 9,523,227
-----------
BELGIUM -- 0.9%
Colruyt SA.......................... 4,300 $ 2,193,759
-----------
CANADA -- 5.5%
Bombardier Inc. Class B............. 117,000 $ 2,403,730
Linamar Corporation................. 35,500 2,059,018
Loblaw Companies Ltd................ 218,000 3,945,560
Magna Int'l. Inc. Cl. A............. 39,000 2,441,891
Power Financial Corp................ 95,000 3,319,310
-----------
$ 14,169,509
-----------
CHILE -- 1.8%
Compania de Telecomunicacion........ 78,000 $ 2,330,250
Embotelladora Andina SA............. 110,000 2,289,375
-----------
$ 4,619,625
-----------
DENMARK -- 4.2%
Christian Hansen Holding A/S........ 21,500 $ 2,545,660
Coloplast B A/S..................... 34,200 2,646,325
Icopal A/S.......................... 8,680 1,862,851
Novo-Nordisk A/S.................... 26,000 3,719,980
-----------
$ 10,774,816
-----------
FINLAND -- 1.8%
Metra OY............................ 96,200 $ 2,260,745
Orion A/S-B......................... 94,220 2,423,527
-----------
$ 4,684,272
-----------
FRANCE -- 9.2%
Comptoirs Modernes SA............... 4,504 $ 2,307,419
Groupe SEB SA....................... 12,000 1,674,637
Guilbert SA*........................ 16,500 2,354,771
L'Air Liquide SA.................... 12,043 1,886,961
LeGrand SA.......................... 10,500 2,094,044
Pinault-Printemps Redoute SA*....... 4,200 2,243,195
Sagem SA............................ 5,020 2,237,772
Societe BIC SA...................... 26,400 1,929,046
Synthelabo.......................... 22,900 2,864,381
Technip-Cie. Fran. D'Etudes*........ 19,200 2,027,927
Valeo SA............................ 32,000 2,172,704
-----------
$ 23,792,857
-----------
GERMANY -- 3.4%
Bayerische Motoren Werke AG......... 3,109 $ 2,325,698
Douglas Holdings AG................. 20,570 621,219
Dyckerhoff AG....................... 6,300 1,664,349
Gehe AG............................. 32,000 1,601,780
Veba AG ............................ 39,000 2,657,119
-----------
$ 8,870,165
-----------
HONG KONG -- 5.2%
Bank of East Asia, Limited.......... 958,000 $ 2,244,153
CLP Holdings Limited................ 351,276 1,949,406
Hong Kong Aircraft Engineering Co... 741,000 1,864,933
Hong Kong & China Gas Co. ADR.......1,352,349 2,617,877
HSBC Holdings PLC (HK $)............ 92,800 2,287,661
Johnson Electric Holdings Ltd....... 808,000 2,325,556
-----------
$ 13,289,586
-----------
IRELAND -- 2.4%
Bank of Ireland*.................... 156,000 $ 2,407,831
Elan Corp. PLC*..................... 62,000 3,173,625
Greencore PLC....................... 109,899 521,231
-----------
$ 6,102,687
-----------
ITALY -- 2.6%
Benetton SPA........................ 137,000 $ 2,224,855
Edison SPA.......................... 372,000 2,226,950
Eni Group Ente Nazionale Idrocarburi*383,000 2,188,386
-----------
$ 6,640,191
-----------
<PAGE>
JAPAN -- 4.4%
Bridgestone Corporation............. 103,000 $ 2,232,442
Canon Inc........................... 79,000 1,839,320
Honda Motor Co., Ltd................ 65,000 2,384,545
Promise Co., Ltd.................... 41,000 2,273,417
Shohkoh Fund & Co., Ltd............. 8,100 2,469,020
-----------
$ 11,198,744
-----------
MALAYSIA -- 0.6%
Guinness Anchor Berhad.............. 391,000 $ 482,437
Hong Leong Industries Berhad........ 290,800 296,014
Perlis Plantations Berhad........... 307,000 434,034
Sime Darby Berhad................... 300,200 288,606
Sungei Way Holdings Berhad.......... 362,000 117,246
-----------
$ 1,618,337
-----------
MEXICO -- 4.7%
Cemex S.A.*......................... 500,000 $ 2,251,696
Cifra S.A.*.........................1,200,000 2,934,485
Grupo Carso S.A. de C.V............. 327,000 2,174,621
Grupo Industrial Maseca-B...........1,557,000 1,598,302
Telefonos de Mexico................. 54,400 3,049,800
-----------
$ 12,008,904
-----------
NETHERLANDS -- 13.7%
Akzo Nobel N.V...................... 12,450 $ 2,147,802
CSM N.V. Cert....................... 45,501 2,020,770
Elsevier............................ 134,900 2,183,430
Getronics N.V....................... 31,784 1,013,198
Hagemeyer N.V....................... 47,606 1,989,750
Heineken N.V........................ 13,095 2,281,044
IHC Caland N.V...................... 35,555 1,845,737
ING Groep N.V....................... 49,800 2,098,653
Koninklijke Ahold N.V............... 90,506 2,362,580
Koninklijke PTT Nederland NV........ 57,838 2,414,555
Nutricia Verenidge Bedrijve......... 72,187 2,190,723
NV Twentsche Kabel Holdings......... 43,000 2,132,494
NV Verenigd Bezit VNU............... 101,000 2,850,827
Polygram............................ 47,070 2,253,042
Stork N.V........................... 63,600 2,196,891
Unilever N.V........................ 51,600 3,182,826
-----------
$ 35,164,322
-----------
SINGAPORE -- 0.6%
Singapore Press Holdings LT......... 117,200 $ 1,469,789
-----------
SOUTH AFRICA -- 2.3%
Sasol Beperk Limited................ 175,000 $ 1,833,967
South African Breweries LT.......... 90,603 2,234,123
Tiger Oats Limited.................. 144,700 2,000,343
-----------
$ 6,068,433
-----------
SPAIN -- 3.9%
Banco Popular Espanola.............. 46,400 $ 3,243,477
Endesa S.A.......................... 122,400 2,173,161
Gas Natural SDG S.A................. 42,000 2,177,808
Repsol S.A.......................... 55,740 2,378,066
-----------
$ 9,972,512
-----------
SWEDEN -- 2.9%
Astra AB B Free Shares.............. 142,000 $ 2,389,307
Atlas Copco AB A Free............... 101,000 3,016,977
Hoganas AB.......................... 67,000 2,052,029
-----------
$ 7,458,313
-----------
SWITZERLAND -- 7.1%
ABB AG.............................. 1,530 $ 1,920,152
Alusuisse-Lonza Holding AG.......... 2,450 2,334,131
Nestle SA ADR....................... 36,900 2,768,983
Novartis AG-Reg..................... 1,900 3,079,711
Roche Holding AG - Genussch......... 270 2,678,487
Sch. Rueckversicherungs-Ges......... 1,630 3,045,625
S.M.H. AG-Registered 10SFR.......... 17,600 2,371,303
-----------
$ 18,198,392
-----------
UNITED KINGDOM -- 17.4%
Allied Colloids Group PLC........... 460,000 $ 1,261,887
Boots Company (The) PLC............. 168,500 2,440,655
Cable & Wireless PLC ADR........... 84,300 2,291,906
Johnson Matthey Public Ltd.......... 255,200 2,298,433
Kwik-Fit Holdings PLC............... 387,100 2,248,553
Marks & Spencer PLC................. 240,700 2,382,635
Polypipe PLC........................ 625,000 1,828,133
Powerscreen Int'l................... 245,100 2,474,607
Provident Financial PLC............. 283,491 3,747,864
<PAGE>
Reckitt & Colman PLC................ 152,135 2,400,972
Scottish Power PLC.................. 253,000 2,249,352
Siebe PLC........................... 135,972 2,685,171
Smiths Industries PLC............... 180,100 2,523,854
Tesco PLC........................... 420,155 3,436,919
Vodafone Group PLC.................. 432,032 3,134,260
Weir Group PLC...................... 525,000 2,307,786
Wm. Morrison Supermarkets PLC....... 821,000 3,120,510
Wolseley PLC........................ 252,215 2,016,929
-----------
$ 44,850,426
-----------
TOTAL EQUITY INTERESTS - 98.3%
(identified cost, $199,633,177) $252,668,866
RESERVE FUNDS - 4.4%
Face Amount
American Express Corp., 6.652%, 1/02/98
(at amortized cost)............$11,355,000 $ 11,355,000
-----------
TOTAL INVESTMENTS -- 102.7%
(identified cost, $210,988,177) $264,023,866
OTHER ASSETS,
LESS LIABILITIES -- (2.7%) (6,977,246)
-----------
NET ASSETS -- 100% $257,046,620
============
* Non-income-producing security.
ADR: American Depository Receipts
See notes to financial statements
<PAGE>
WRIGHT U.S. TREASURY NEAR TERM PORTFOLIO (WNTB)
PORTFOLIO OF INVESTMENTS
December 31, 1997
<TABLE>
<CAPTION>
Face Coupon Maturity Market Current Yield To
Amount Description Rate Date Price Value Yield(1) Maturity(1)
- ----------------------------------------------------------------------------------------------------------------------------------
GOVERNMENT INTERESTS
- --------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 8,750,000 U. S. Treasury Notes 7.875% 04/15/98 $100.672 $ 8,808,800 7.82% 5.42%
3,450,000 U. S. Treasury Notes 9.000% 05/15/98 101.250 3,493,125 8.89% 5.52%
2,500,000 U. S. Treasury Notes 6.125% 08/31/98 100.312 2,507,800 6.11% 5.62%
2,000,000 U. S. Treasury Notes 7.125% 10/15/98 101.141 2,022,820 7.05% 5.61%
700,000 U. S. Treasury Notes 6.375% 01/15/99 100.766 705,362 6.33% 5.60%
10,000,000 U. S. Treasury Notes 6.250% 03/31/99 100.719 10,071,900 6.21% 5.64%
3,000,000 U. S. Treasury Notes 7.000% 04/15/99 101.656 3,049,680 6.89% 5.64%
8,500,000 U. S. Treasury Notes 6.375% 07/15/99 101.047 8,588,995 6.31% 5.65%
2,000,000 U. S. Treasury Notes 8.000% 08/15/99 103.531 2,070,620 7.73% 5.69%
2,000,000 U. S. Treasury Notes 5.750% 09/30/99 101.141 2,002,820 5.74% 5.66%
2,000,000 U. S. Treasury Notes 7.875% 11/15/99 103.844 2,076,880 7.58% 5.68%
2,000,000 U. S. Treasury Notes 5.875% 02/15/00 100.391 2,007,820 5.85% 5.67%
1,500,000 U. S. Treasury Notes 8.500% 02/15/00 105.562 1,583,430 8.05% 5.68%
11,100,000 U. S. Treasury Notes 7.125% 02/29/00 102.891 11,420,901 6.92% 5.68%
8,000,000 U. S. Treasury Notes 6.250% 05/31/00 101.250 8,100,000 6.17% 5.69%
9,500,000 U. S. Treasury Notes 6.000% 08/15/00 100.719 9,568,305 5.96% 5.70%
2,500,000 U. S. Treasury Notes 5.625% 02/28/01 99.734 2,493,350 5.64% 5.72%
9,650,000 U. S. Treasury Notes 7.500% 11/15/01 106.016 10,230,544 7.07% 5.74%
4,000,000 U. S. Treasury Notes 6.250% 02/28/02 101.828 4,073,120 6.14% 5.75%
2,000,000 U. S. Treasury Notes 6.000% 07/31/02 101.047 2,020,940 5.94% 5.74%
3,400,000 Federal Home Loan Banks 5.020% 11/16/98 99.529 3,383,987 5.04% 5.57%
-----------
Total Government Interests (identified cost, $99,302,302) -- 97.5% $100,281,199
COMMERCIAL PAPER
- -------------------
780,000 American Express Corp. 6.652% 01/02/98 780,000 6.65% 6.44%
-----------
Total Investments (identified cost, $100,082,303) -- 98.2% $101,061,199
Other Assets, Less Liabilities -- 1.8% 1,800,240
-----------
Net Assets -- 100.0% $102,861,439
============
Average Maturity -- 2 Years (1)
(1) Unaudited.
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT U.S. TREASURY PORTFOLIO (WUSTB)
PORTFOLIO OF INVESTMENTS
December 31, 1997
<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 $100.359 $ 5,519,745 5.85% 5.67%
3,400,000 U. S. Treasury Notes 6.250% 05/31/00 101.250 3,442,500 6.17% 5.69%
5,700,000 U. S. Treasury Notes 5.250% 01/31/01 98.781 5,630,517 5.32% 5.69%
600,000 U. S. Treasury Notes 6.625% 07/31/01 102.812 616,872 6.44% 5.74%
900,000 U. S. Treasury Notes 6.250% 02/15/03 102.266 920,394 6.11% 5.73%
14,000,000 U. S. Treasury Notes 6.500% 05/15/05 104.250 14,595,000 6.24% 5.79%
8,950,000 U. S. Treasury Notes 6.500% 08/15/05 104.344 9,338,788 6.23% 5.79%
3,200,000 U. S. Treasury Notes 5.875% 11/15/05 100.531 3,216,992 5.84% 5.79%
6,000,000 U. S. Treasury Notes 5.625% 02/15/06 98.875 5,932,500 5.69% 5.80%
3,500,000 U. S. Treasury Notes 6.500% 10/15/06 104.703 3,664,605 6.21% 5.81%
1,500,000 U. S. Treasury Notes 6.250% 02/15/07 103.187 1,547,805 6.06% 5.80%
1,500,000 U. S. Treasury Notes 6.625% 05/15/07 105.844 1,587,660 6.26% 5.81%
3,000,000 U. S. Treasury Notes 6.125% 08/15/07 102.766 3,082,980 5.96% 5.75%
600,000 U. S. Treasury Bonds 11.625% 11/15/04 132.734 796,404 8.76% 5.78%
1,000,000 U. S. Treasury Bonds 10.000% 05/15/10 124.266 1,242,660 8.05% 7.03%
1,300,000 U. S. Treasury Bonds 14.000% 11/15/11 155.391 2,020,083 9.01% 7.17%
6,100,000 U. S. Treasury Bonds 7.250% 05/15/16 113.906 6,948,266 6.37% 5.99%
2,000,000 U. S. Treasury Bonds 6.250% 08/15/23 103.000 2,060,000 6.07% 6.02%
-----------
Total Investments (identified cost, $69,479,253)-- 96.8% $ 72,163,771
Other Assets, less Liabilities-- 3.2% 2,374,728
-----------
Net Assets-- 100.0% $ 74,538,499
============
Average Maturity -- 9 Years (1)
(1) Unaudited.
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT CURRENT INCOME PORTFOLIO (WCIF)
PORTFOLIO OF INVESTMENTS
December 31, 1997
================================================================================
<TABLE>
<CAPTION>
Face Coupon Maturity Market Current
Amount Description Rate Date Price Value Yield(1)
- -------------------------------------------------------------------------------------------------------------------------------
GOVERNMENT INTERESTS - 98.1%
- ------------------------------
<S> <C> <C> <C> <C> <C>
$ 3,552 GNMA POOL # 000434 8.000% 04/15/2001 $102.073 $ 3,626 7.84%
803 GNMA POOL # 000473 7.500% 04/15/2001 101.544 816 7.39%
1,196,382 GNMA POOL # 000545 7.500% 12/20/2022 102.469 1,225,921 7.32%
1,929,314 GNMA POOL # 000723 7.500% 01/20/2023 102.469 1,976,950 7.32%
1,753,410 GNMA POOL # 001268 8.000% 07/20/2023 103.968 1,822,986 7.70%
2,321 GNMA POOL # 001408 6.500% 03/15/2002 99.713 2,314 6.52%
99,686 GNMA POOL # 001596 9.000% 04/20/2021 107.718 107,381 8.36%
487,809 GNMA POOL # 001788 7.000% 07/20/2024 100.844 491,927 6.94%
917,918 GNMA POOL # 002218 7.500% 05/20/2026 102.156 937,709 7.34%
1,962 GNMA POOL # 003026 8.000% 01/15/2004 102.969 2,021 7.77%
1,201 GNMA POOL # 003331 8.000% 01/15/2004 102.969 1,237 7.77%
3,468 GNMA POOL # 004183 8.000% 07/15/2004 103.388 3,586 7.74%
2,512 GNMA POOL # 004433 9.000% 11/15/2004 105.643 2,654 8.52%
5,262 GNMA POOL # 005466 8.500% 03/15/2005 104.454 5,497 8.14%
606 GNMA POOL # 005561 8.500% 04/15/2005 103.922 630 8.18%
2,630 GNMA POOL # 005687 7.250% 02/15/2005 102.216 2,689 7.09%
3,180 GNMA POOL # 005910 7.250% 02/15/2005 102.216 3,251 7.09%
14,498 GNMA POOL # 007003 8.000% 07/15/2005 103.767 15,045 7.71%
2,313 GNMA POOL # 007319 6.500% 10/15/2004 99.658 2,306 6.52%
6,145 GNMA POOL # 009106 8.250% 05/15/2006 104.740 6,437 7.88%
8,506 GNMA POOL # 009889 7.250% 02/15/2006 102.490 8,719 7.07%
1,323 GNMA POOL # 011191 7.250% 04/15/2006 102.621 1,358 7.07%
5,005 GNMA POOL # 012526 8.000% 11/15/2006 104.112 5,212 7.68%
98,510 GNMA POOL # 151443 10.000% 03/15/2016 110.673 109,024 9.04%
20,597 GNMA POOL # 153564 10.000% 04/15/2016 110.673 22,796 9.04%
152,609 GNMA POOL # 172558 9.500% 08/15/2016 108.499 165,580 8.76%
175,145 GNMA POOL # 176992 8.000% 11/15/2016 105.218 184,285 7.6%
47,236 GNMA POOL # 177784 8.000% 10/15/2016 105.218 49,701 7.6%
62,256 GNMA POOL # 180033 9.500% 09/15/2016 108.499 67,548 8.76%
10,871 GNMA POOL # 188060 9.500% 10/15/2016 108.499 11,795 8.76%
6,531 GNMA POOL # 190959 8.500% 02/15/2017 106.743 6,972 7.96%
105,849 GNMA POOL # 192357 8.000% 04/15/2017 105.056 111,201 7.61%
442,447 GNMA POOL # 194057 8.500% 04/15/2017 106.743 472,282 7.96%
81,305 GNMA POOL # 194287 9.500% 03/15/2017 108.474 88,195 8.76%
594,125 GNMA POOL # 194926 8.500% 02/15/2017 106.743 634,187 7.96%
14,251 GNMA POOL # 196063 8.500% 03/15/2017 106.743 15,212 7.96%
292,237 GNMA POOL # 203369 8.000% 12/15/2016 105.218 307,486 7.60%
15,733 GNMA POOL # 206740 10.000% 10/15/2017 111.206 17,497 8.99%
112,634 GNMA POOL # 206762 9.000% 04/15/2021 108.342 122,030 8.31%
80,273 GNMA POOL # 207019 8.000% 03/15/2017 105.056 84,332 7.62%
30,767 GNMA POOL # 208076 8.000% 04/15/2017 105.056 32,324 7.62%
26,511 GNMA POOL # 210520 10.500% 08/15/2017 112.387 29,796 9.34%
31,591 GNMA POOL # 210618 9.500% 04/15/2017 108.474 34,268 8.76%
132,045 GNMA POOL # 211013 9.000% 01/15/2020 108.467 143,226 8.30%
130,831 GNMA POOL # 211231 8.500% 05/15/2017 106.743 139,654 7.96%
90,639 GNMA POOL # 21260 8.500% 06/15/2017 106.743 96,751 7.96%
27,537 GNMA POOL # 218420 8.500% 11/15/2021 106.218 29,250 8.00%
<PAGE>
$ 241,031 GNMA POOL # 219335 8.000% 05/15/2017 $105.056 $ 253,219 7.62%
217,759 GNMA POOL # 220703 8.000% 05/15/2017 105.056 228,769 7.62%
27,115 GNMA POOL # 220917 8.500% 04/15/2017 106.743 28,943 7.96%
513,464 GNMA POOL # 222112 8.000% 01/15/2022 104.219 535,128 7.68%
41,137 GNMA POOL # 223126 10.000% 08/15/2017 111.206 45,747 8.99%
105,411 GNMA POOL # 223133 9.500% 07/15/2017 108.474 114,344 8.76%
30,457 GNMA POOL # 223348 10.000% 08/15/2018 111.272 33,891 8.99%
10,371 GNMA POOL # 223588 10.000% 12/15/2018 111.048 11,518 9.01%
16,348 GNMA POOL # 224078 10.000% 07/15/2018 111.272 18,191 8.99%
100,125 GNMA POOL # 228308 10.000% 01/15/2019 111.272 111,411 8.99%
64,065 GNMA POOL # 228483 9.500% 09/15/2019 108.424 69,462 8.76%
45,347 GNMA POOL # 230223 9.500% 04/15/2018 108.449 49,179 8.76%
30,814 GNMA POOL # 235000 10.000% 01/15/2018 111.206 34,268 8.99%
67,700 GNMA POOL # 245580 9.500% 07/15/2018 108.449 73,420 8.76%
37,651 GNMA POOL # 247473 10.000% 09/15/2018 111.048 41,812 9.01%
112,984 GNMA POOL # 247681 9.000% 11/15/2019 108.593 122,694 8.29%
32,729 GNMA POOL # 247872 10.000% 09/15/2018 111.272 36,419 8.99%
30,556 GNMA POOL # 250412 8.000% 03/15/2018 104.893 32,052 7.63%
52,660 GNMA POOL # 251241 9.500% 06/15/2018 108.449 57,110 8.76%
99,477 GNMA POOL # 258911 9.500% 09/15/2018 108.449 107,882 8.76%
43,305 GNMA POOL # 260999 9.500% 09/15/2018 108.449 46,965 8.76%
72,034 GNMA POOL # 263439 10.000% 02/15/2019 111.397 80,244 8.98%
77,524 GNMA POOL # 265267 9.500% 08/15/2020 108.399 84,035 8.76%
32,598 GNMA POOL # 266983 10.000% 02/15/2019 111.272 36,273 8.99%
16,902 GNMA POOL # 273690 9.500% 08/15/2019 108.424 18,327 8.76%
50,158 GNMA POOL # 274489 9.500% 12/15/2019 108.424 54,384 8.76%
30,986 GNMA POOL # 275456 9.500% 08/15/2019 108.424 33,596 8.76%
82,033 GNMA POOL # 275538 9.500% 01/15/2020 108.399 88,924 8.76%
40,850 GNMA POOL # 277205 9.000% 12/15/2019 108.593 44,361 8.29%
26,664 GNMA POOL # 285467 9.500% 07/15/2020 108.399 28,904 8.76%
77,438 GNMA POOL # 285744 9.000% 05/15/2020 108.467 83,995 8.30%
97,303 GNMA POOL # 286556 9.000% 03/15/2020 108.467 105,542 8.30%
2,035 GNMA POOL # 287999 9.000% 09/15/2020 108.467 2,208 8.30%
178,179 GNMA POOL # 289092 9.000% 04/15/2020 108.467 193,266 8.30%
13,642 GNMA POOL # 289949 8.500% 07/15/2021 106.218 14,491 8.00%
27,462 GNMA POOL # 290700 9.000% 08/15/2020 108.467 29,787 8.30%
57,133 GNMA POOL # 291933 9.500% 07/15/2020 108.399 61,932 8.76%
42,263 GNMA POOL # 293666 8.500% 06/15/2021 106.218 44,891 8.00%
1,853 GNMA POOL # 294209 9.000% 07/15/2021 108.342 2,008 8.31%
58,309 GNMA POOL # 294577 9.500% 11/15/2020 108.399 63,207 8.76%
12,989 GNMA POOL # 297345 8.500% 08/15/2020 106.349 13,814 7.99%
40,394 GNMA POOL # 301017 8.500% 06/15/2021 106.218 42,907 8.00%
95,387 GNMA POOL # 301366 8.500% 06/15/2021 106.218 101,318 8.00%
127,625 GNMA POOL # 302713 9.000% 02/15/2021 108.342 138,272 8.31%
13,239 GNMA POOL # 302723 8.500% 05/15/2021 106.218 14,063 8.00%
113,057 GNMA POOL # 302781 8.500% 06/15/2021 106.218 120,088 8.00%
107,471 GNMA POOL # 302933 8.500% 06/15/2021 106.218 114,154 8.00%
105,839 GNMA POOL # 304512 8.500% 05/15/2021 106.218 112,421 8.00%
<PAGE>
$ 197,009 GNMA POOL # 305091 9.000% 07/15/2021 $108.342 $ 213,445 8.31%
19,168 GNMA POOL # 306669 8.000% 07/15/2021 104.406 20,013 7.66%
156,161 GNMA POOL # 306693 8.500% 09/15/2021 106.218 165,871 8.00%
100,747 GNMA POOL # 308792 9.000% 07/15/2021 108.342 109,152 8.31%
92,382 GNMA POOL # 311087 8.500% 07/15/2021 106.218 98,127 8.00%
19,122 GNMA POOL # 314222 8.500% 04/15/2022 105.562 20,186 8.05%
189,250 GNMA POOL # 314581 9.500% 10/15/2021 108.374 205,098 8.77%
395,167 GNMA POOL # 315187 8.000% 06/15/2022 104.219 411,840 7.68%
576,532 GNMA POOL # 315388 8.000% 02/15/2022 104.219 600,856 7.68%
416,949 GNMA POOL # 315754 8.000% 01/15/2022 104.219 434,541 7.68%
807,047 GNMA POOL # 316240 8.000% 01/15/2022 104.219 841,097 7.68%
225,866 GNMA POOL # 316615 8.500% 11/15/2021 106.218 239,911 8.00%
268,783 GNMA POOL # 317069 8.500% 12/15/2021 106.218 285,496 8.00%
395,799 GNMA POOL # 317351 8.000% 05/15/2022 104.219 412,498 7.68%
403,603 GNMA POOL # 317358 8.000% 05/15/2022 104.219 420,632 7.68%
350,980 GNMA POOL # 318776 8.000% 02/15/2022 104.219 365,789 7.68%
10,052 GNMA POOL # 318793 8.500% 02/15/2022 105.562 10,612 8.05%
389,597 GNMA POOL # 319441 8.500% 04/15/2022 105.562 411,267 8.05%
248,981 GNMA POOL # 321806 8.000% 05/15/2022 104.219 259,486 7.68%
533,073 GNMA POOL # 321807 8.000% 05/15/2022 104.219 555,564 7.68%
283,458 GNMA POOL # 321976 8.500% 01/15/2022 105.562 299,224 8.05%
564,783 GNMA POOL # 323226 8.000% 06/15/2022 104.219 588,612 7.68%
495,073 GNMA POOL # 323929 8.000% 02/15/2022 104.219 515,960 7.68%
461,884 GNMA POOL # 325165 8.000% 06/15/2022 104.219 481,372 7.68%
365,110 GNMA POOL # 325651 8.000% 06/15/2022 104.219 380,514 7.68%
644,868 GNMA POOL # 329540 7.500% 08/15/2022 102.780 662,796 7.30%
1,133,485 GNMA POOL # 329982 7.500% 02/15/2023 102.718 1,164,293 7.30%
559,890 GNMA POOL # 331361 8.000% 11/15/2022 104.219 583,512 7.68%
1,046,537 GNMA POOL # 335746 8.000% 10/15/2022 104.219 1,090,690 7.68%
426,951 GNMA POOL # 335950 8.000% 10/15/2022 104.219 444,964 7.68%
2,159,726 GNMA POOL # 348103 7.000% 06/15/2023 101.156 2,184,693 6.92%
666,699 GNMA POOL # 348213 6.500% 08/15/2023 99.219 661,492 6.55%
1,397,374 GNMA POOL # 350372 7.000% 04/15/2023 101.156 1,413,527 6.92%
1,264,646 GNMA POOL # 350659 7.500% 06/15/2023 102.718 1,299,018 7.30%
1,611,618 GNMA POOL # 350938 6.500% 08/15/2023 99.219 1,599,032 6.55%
805,082 GNMA POOL # 362174 6.500% 01/15/2024 99.156 798,287 6.56%
827,033 GNMA POOL # 362628 7.000% 08/15/2023 101.156 836,594 6.92%
852,750 GNMA POOL # 363429 7.000% 08/15/2023 101.156 862,607 6.92%
809,988 GNMA POOL # 367414 6.000% 11/15/2023 96.968 785,430 6.19%
1,454,009 GNMA POOL # 367806 6.500% 09/15/2023 99.219 1,442,654 6.55%
1,910,224 GNMA POOL # 368238 7.000% 12/15/2023 101.156 1,932,306 6.92%
2,403,149 GNMA POOL # 368502 7.000% 02/15/2024 101.093 2,429,415 6.92%
1,670,519 GNMA POOL # 370773 6.000% 11/15/2023 96.968 1,619,868 6.19%
2,746,725 GNMA POOL # 372050 6.500% 02/15/2024 99.156 2,723,543 6.56%
1,803,286 GNMA POOL # 372379 8.000% 10/15/2026 103.656 1,869,214 7.72%
990,000 GNMA POOL # 372468 6.500% 12/15/2027 98.968 979,783 6.57%
3,161,558 GNMA POOL # 376218 7.500% 08/15/2025 102.468 3,239,585 7.32%
887,210 GNMA POOL # 394805 7.500% 02/15/2026 102.437 908,832 7.32%
<PAGE>
$ 855,891 GNMA POOL # 398251 7.500% 09/15/2025 $102.468 $ 877,015 7.32%
1,516,382 GNMA POOL # 405558 7.500% 01/15/2026 102.437 1,553,337 7.32%
1,452,312 GNMA POOL # 410915 6.500% 02/15/2026 98.968 1,437,325 6.57%
901,255 GNMA POOL # 414736 7.500% 11/15/2025 102.468 923,499 7.32%
990,373 GNMA POOL # 417225 7.500% 01/15/2026 102.437 1,014,509 7.32%
1,396,101 GNMA POOL # 417276 7.000% 02/15/2026 100.812 1,407,438 6.94%
3,734,604 GNMA POOL # 420707 7.000% 02/15/2026 100.812 3,764,930 6.94%
930,782 GNMA POOL # 421829 7.500% 04/15/2026 102.437 953,466 7.32%
152,466 GNMA POOL # 423114 7.000% 09/15/2027 100.812 153,704 6.94%
920,226 GNMA POOL # 424173 7.500% 03/15/2026 102.437 942,653 7.32%
1,843,818 GNMA POOL # 430279 7.000% 10/15/2027 100.812 1,858,790 6.94%
864,541 GNMA POOL # 431036 8.000% 07/15/2026 103.656 896,149 7.72%
3,710,296 GNMA POOL # 431612 8.000% 11/15/2026 103.656 3,845,945 7.72%
1,246,060 GNMA POOL # 436723 7.500% 11/15/2026 102.437 1,276,427 7.32%
3,255,125 GNMA POOL # 436777 7.000% 04/15/2027 100.812 3,281,557 6.94%
2,405,102 GNMA POOL # 440166 7.000% 02/15/2027 100.812 2,424,632 6.94%
1,049,285 GNMA POOL # 442063 7.000% 10/15/2026 100.812 1,057,806 6.94%
1,486,685 GNMA POOL # 442190 8.000% 12/15/2026 103.656 1,541,039 7.72%
1,031,110 GNMA POOL # 442193 7.500% 12/15/2026 102.437 1,056,238 7.32%
1,250,590 GNMA POOL # 446943 7.000% 04/15/2027 100.812 1,260,745 6.94%
4,269,179 GNMA POOL # 448490 7.500% 03/15/2027 102.437 4,373,219 7.32%
499,125 GNMA POOL # 460698 7.000% 10/15/2027 100.812 503,179 6.94%
1,485,000 GNMA POOL # 460726 6.500% 12/15/2027 98.968 1,469,675 6.57%
990,000 GNMA POOL # 462444 6.500% 12/15/2027 98.968 979,783 6.57%
2,730,955 GNMA POOL # 780429 7.500% 09/15/2026 102.468 2,798,356 7.32%
956,215 GNMA POOL # 780518 7.000% 06/15/2026 100.843 964,277 6.94%
----------- ------
Total Government Interests (identified cost, $94,144,670)-- 98.1% $ 95,880,491
COMMERCIAL PAPER - 1.3%
- -----------------------------
$ 1,280,000 AMERICAN EXPRESS CORP 6.652% 01/02/98 1,280,000 6.65%
----------- ------
Total Investments (identified cost $95,424,670)-- 99.4% $ 97,160,491
Other Assets, less Liabilities-- 0.6% 604,895
-----------
Net Assets-- 100.0% $97,765,386
============
See notes to financial statements
(1) Unaudited.
</TABLE>
<PAGE>
The Wright Managed
Blue Chip Investment Funds
Annual Report
Officers and Trustees of the Funds
Peter M. Donovan, President and Trustee
H. Day Brigham, Jr., Vice President , Secretary and Trustee
A. M. Moody III, Vice President and Trustee
Judith R. Corchard, Vice President and Trustee
Winthrop S. Emmet, Trustee
Leland Miles, Trustee
Lloyd F. Pierce, Trustee
George R. Prefer, Trustee
Richard E. Taber, 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
200 Clarendon Street
Boston, Massachusetts 02116
Transfer and Dividend Disbursing Agent
First Data Investor Services Group
Wright Managed Investment Funds
P.O. Box 5156
Westborough, Massachusetts 01581-9698
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.
