- --------------------------------------------------------------------------------
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.
- -------------------------------------------------------------------------------
THE WRIGHT
MANAGED
BLUE CHIP
INVESTMENT
FUNDS
Annual Report
December 31, 1998
<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. GOVERNMENT NEAR TERM FUND (WNTB) (name changed to Wright U.S.
Government Near Term Fund on July 1, 1998) is a diversified portfolio
concentrating on bonds and other obligations of the U.S. Government and U.S.
Government Agencies with an average weighted maturity of less than 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.................................... 11
FINANCIAL STATEMENTS
-------------------------------------
Wright Managed Equity Trust
Statements of Assets and Liabilities.................. 16
Statements of Operations.............................. 18
Statements of Changes in Net Assets................... 19
Financial Highlights.................................. 21
Notes to Financial Statements......................... 26
Wright Managed income Trust
Statements of Assets and Liabilities................... 31
Statements of Operations............................... 33
Statements of Changes in Net Assets.................... 35
Financial Highlights................................... 37
Notes to Financial Statements.......................... 43
Wright Blue Chip Master Portfolio trust
Statements of Assets and Liabilities................... 49
Statements of Operations............................... 51
Statements of Changes in Net Assets.................... 53
Supplementary Data..................................... 56
Notes to Financial Statements.......................... 58
PORTFOLIOS
----------------------------
Wright Major Blue Chip Equities Fund (WMBC)............ 63
Wright Total Return Bond Fund (WTRB)................... 65
Wright U.S. Treasury Money Market Fund (WTMM).......... 67
Wright Selected Blue Chip Equities Portfolio (WBC)..... 68
Wright Junior Blue Chip Equities Portfolio (WJBC)...... 70
Wright International Blue Chip Equities Portfolio (WIBC)72
Wright U.S. Government Near Term Portfolio (WNTB).......75
Wright U.S. Treasury Portfolio (WUSTB)..................76
Wright Current Income Portfolio (WCIF)..................77
<PAGE>
LETTER TO SHAREHOLDERS
================================================================================
February 1999
Dear Shareholders:
The year 1998 will go down in stock market history for its volatility and
for the huge performance disparities between big stocks, which generally did
well, and smaller ones, which mostly lagged. Investor sentiment ranged over the
spectrum from euphoria to despair during 1998: the third quarter was the worst
quarter for the world's stock markets since 1990; in the fourth quarter, stock
prices came back strongly. Some well-timed interest rate cuts by the Federal
Reserve helped to stem last autumn's flight from stocks. European stocks took
their cue from the U.S. in 1998, rising broadly; stocks in Asia rallied in the
fourth quarter but generally not enough to make up for losses over the first
nine months of the year. Bonds had a flat fourth quarter but respectable gains
for all of 1998.
The U.S. economy continues to sail along at a good clip, with consumers
showing little concern over international economic difficulties. U.S.
manufacturing has been the one sector affected by the Asian recession, with
factories shedding nearly 300,000 jobs over the past nine months.
Service-producing industries, on the other hand, have created 2 1/2 million new
jobs over this period, maintaining the strong positive trend in personal income.
Consumer confidence remains high, although a sell-off in the stock market or
renewed global financial strains could cause spending to slow. At this stage,
though, it appears more likely that the U.S. economy will lend support to the
struggling economies of the world in 1999, rather than being dragged down to
their levels. Some slowing in economic growth is almost certainly coming, but
Wright still forecasts real GDP growth of better than 2%, with inflation staying
low, in 1999.
Wild swings in investment sentiment - from July's heady optimism to the
despair of August back to renewed bullishness in January 1999 - point up a new
volatility in U.S. stocks. From 1991 to the middle of 1997, the U.S. stock
market was a model of stability, sensibility and low volatility. But over the
past 18 months, stock market fluctuations have been growing steadily. Since last
August, as stock prices have regained momentum, investor confidence has grown
into what appeared to be full-blown euphoria in early 1999. The breadth of the
rally hasn't exactly been inspiring, however; the advance has become more and
more concentrated in technology and speculative internet stocks.
Investment fundamentals remain reasonably positive today, but one cannot
help wonder if they are so good as to warrant the highest P/E multiples in
history. Stocks may be setting themselves up for a retreat, while top-grade bond
holdings offer a measure of stability and value to portfolios that could come in
handy should stock prices correct to more normal levels. There are any number of
good quality stocks that are still priced at reasonable values, and investors
should be well rewarded by such holdings over the next several years. But in the
short run, the potential for a reversal in stock prices appears to be high,
particularly for today's high-flying market leaders.
As always, it should be understood that past performance does not guarantee
future results and that investment return and principal value will fluctuate so
that an investor's shares, when redeemed, may be worth more or less than their
original cost. Investing internationally entails additional risks, such as
currency fluctuations and potential political instability. The paragraphs on the
following pages discuss the various economic, political and market factors
affecting the investment performance of the Wright Equity and Fixed-Income Funds
during 1998 and prospects for the period ahead.
Sincerely,
/s/ Peter M. Donovan
Peter M. Donovan
President
<PAGE>
MANAGEMENT DISCUSSION
================================================================================
EQUITY FUNDS
- -------------
THE NEARLY YEAR-LONG INVESTIGATION OF PRESIDENT CLINTON, CULMINATING IN HIS
IMPEACHMENT DURING THE FOURTH QUARTER, PROVIDED AN UNCERTAIN POLITICAL BACKDROP
FOR THE STOCK MARKET DURING 1998. AT THE SAME TIME, FINANCIAL CRISIS IN RUSSIA
AND BRAZIL, ON TOP OF ONGOING ECONOMIC WEAKNESS IN JAPAN, CONTRIBUTED TO MARKET
VOLATILITY. CONTRARY TO EXPECTATIONS OF AN EXPORT-RELATED SLOWDOWN, HOWEVER, THE
U.S. ECONOMY HAS CONTINUED TO EXPAND AT A ROBUST RATE. FOR ALL OF 1998, REAL GDP
GREW BY 4%, MATCHING THE STRONG GROWTH OF 1996 AND 1997.
THE REMARKABLE RESILIENCE OF THE U.S. ECONOMY PROBABLY MEANS THAT CORPORATE
PROFITS WILL RECOVER MODESTLY IN 1999, AFTER A RELATIVELY DISAPPOINTING 1998.
INFLATION IS FORECAST TO REMAIN UNDER CONTROL IN THE COMING YEAR, AND THE
FEDERAL RESERVE WILL PROBABLY MAINTAIN A STEADY INTEREST RATE POLICY. STOCK
PRICE/EARNINGS MULTIPLES ARE HISTORICALLY HIGH, SUGGESTING THAT EQUITY RETURNS
WILL BE MORE MODEST IN 1999 THAN THEY HAVE BEEN OVER THE PAST FOUR YEARS.
<TABLE>
<CAPTION>
1998 1998 1997 1996 1995 1994 1993 1992 1991
Total Return Q4 Year Year Year Year Year Year Year Year
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Selected Blue Chips (WBC) 18.8% 0.1% 32.7% 18.6% 30.3% -3.5% 2.1% 4.7% 36.0%
Major Blue Chips (WMBC) 23.8% 20.4% 33.9% 17.6% 29.0% -0.7% 1.0% 8.0% 38.9%
Junior Blue Chips (WJBC) 14.8% -4.9% 28.9% 17.5% 20.5% -2.8% 7.9% 3.3% 37.0%
Int'l Blue Chips (WIBC)
Standard Shares 16.9% 6.1% 1.5% 20.7% 13.6% -1.6% 28.2% -3.9% 17.2%
Institutional Shares 17.2% 7.5% -6.4%* - - - - - -
- -------------------------------------------------------------------------------------------------------------------------------
*: For the period from July 7, 1997 (start of business) to December 31, 1997.
</TABLE>
WRIGHT SELECTED BLUE CHIP EQUITIES FUND
The Wright Selected Blue Chip Fund (WSBC) had a total return of 18.8% in
the fourth quarter of 1998. The WSBC's fourth-quarter gain was close to the
18.6% total return earned by the NYSE Composite but lagged the 23.1% return
reported by the Lipper average of equity growth funds. Over all of 1998, the
WSBC Fund was virtually break-even in total return, while the Lipper average
returned 22.9% and the NYSE returned 18.5%.
The domination of a relatively few large-cap and internet stocks was the
story of the stock market and the laggard performance of the WSBC during 1998.
Wright's strict quality standards preclude investing in speculative issues -
such as internet stocks with no or poor earnings history. Additionally, many of
the big-cap stocks that dominated the performance of the major stock market
averages last year have risen to exorbitant P/E levels.
In the fourth quarter, underweighting in electronics, communications and
retail stocks hampered the WSBC, although the individual securities in these
groups selected for the Fund did well. Overweighting in the chemical, metal
products and utility industries also hurt. A big positive for the WSBC Fund in
the fourth quarter was its underweighting in energy stocks, which were weak in
the quarter; a strong performance by the recreation companies in the Fund also
helped results.
In the past, periods of stock market dominance by a few issues (e.g., the
"nifty fifty" of the early 1970s) have been followed by periods in which
overpriced market favorites correct to more reasonable values. Wright believes
that the high-quality, reasonably priced issues held in the WSBC are likely to
fare better than the overpriced stock market leaders over the next couple years.
The WSBC ended 1998 holding stocks with an average P/E multiple of 14 times
expected year-ahead earnings, just half the valuation of the S&P 500 Composite.
This dramatic undervaluation has developed despite the fact that the earnings
growth expected for the WSBC stocks is as good or better than that for the S&P
500 over the next year and the next five years.
<PAGE>
WRIGHT JUNIOR BLUE CHIP EQUITIES FUND
After outperforming the Value Line 1600-stock Composite handily in 1997,
the Wright Junior Blue Chip Fund (WJBC) lagged in 1998, slipping 4.9% for the
year compared with a loss of 1.1% for the Value Line benchmark and an 18.5%
advance for the NYSE Composite. In the fourth quarter of 1998, small stock
returns once again lagged big-stock returns. The Wright Junior Blue Chip Fund
(WJBC) rose 14.8% in the quarter, in line with the 14.9% return on the Value
Line Composite but behind the 18.6% return of the NYSE Composite.
The WJBC Fund lagged in the fourth quarter primarily due to the strong
performance of high-technology issues during this period; WJBC has only about
half the weight in this group as the market averages. Additionally,
overweighting in auto and paper stocks hurt the WJBC performance. On the other
hand, underweighting in energy stocks helped WJBC's results, as did its
relatively large positions in apparel and retail companies. Many of the
high-tech stocks that led the market's advance during 1998 have become quite a
bit overvalued, while the stocks in the WJBC Fund average a P/E multiple of 14
times year-ahead earnings, half the S&P 500's P/E.
WRIGHT MAJOR BLUE CHIP EQUITIES FUND
The Wright Major Blue Chip Fund (WMBC) returned 23.8% in the fourth quarter
of 1998, exceeding the returns earned by the NYSE Composite (18.6%) and the
Lipper average of equity growth funds (23.1%). For all of 1998, the WMBC Fund,
which invests in the larger issues on the Approved Wright Investment List,
returned 20.4%, slightly behind the Lipper average's 22.9% but ahead of the
NYSE's 18.5% return.
The WMBC's strong showing in the fourth quarter owes a lot to its
overweighting and favorable stock selection in the retail industry. An
underweight position in the oil and gas sector also helped. Weakness in some of
the Fund's machinery and equipment stocks and an underweighting in
communications stocks hurt.
In the fourth quarter, the WMBC was able to perform well despite a
below-average market cap (about $12 billion versus the S&P 500's $60 billion)
and the fact that it holds few of the speculative high-tech issues that caught
investor fancy late in the year. Going forward, as 1998's market favorites come
back to earth, the WMBC stands to benefit from its relatively attractive
valuation of 20 times year-ahead earnings - only about two-thirds of the S&P
500's year-ahead P/E.
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND
The Wright International Blue Chip Fund (WIBC) Standard and Institutional
Shares earned a 16.8% and 17.2% total return, respectively, in the fourth
quarter of 1998, behind the 20.3% advance for the FT/S&P Actuaries World ex U.S.
index. Over the 12 months of 1998, WIBC Standard and Institutional Shares
returned 6.1% and 7.5%, respectively, as compared with 16.2% for the FT/S&P
World ex U.S. index. Although lagging in 1998, WIBC topped the benchmark return
in the each of the prior two years, and since its inception 9 1/4 years ago,
WIBC has posted a 7.9% compound annual rate of return compared with 5.0% for the
FT/S&P World ex U.S. index.
Most of the WIBC underperformance in the fourth quarter can be attributed
to its underweighted position in Japan, where dollar-denominated returns were
boosted by the strong yen. A lagging performance by WIBC's U.K. holdings also
hurt results. In the quarter, the Fund got good performance from its electronic
and financial stocks and from its Canadian holdings. Overweight positions in
such strong markets as the Netherlands, Finland, Spain and France also helped.
As with the U.S., international markets face a lot of uncertainties in
1999. In Europe, the introduction of the euro has been relatively smooth, but
the potential for temporary dislocations adds to the risks posed by high equity
valuations and slowing economic growth. The worst may be over in Asia, but there
is a long way to go before its economies are again healthy. And now Brazil's
currency and debt problems are likely to cast a shadow on global markets for
some time to come. More volatility is undoubtedly in store for international
stock markets in 1999.
<PAGE>
FIXED-INCOME FUNDS
FOR ALL OF 1998, TREASURY BOND YIELDS DECLINED AN AVERAGE OF 90 BASIS
POINTS ALONG THE LENGTH OF THE YIELD CURVE. THIS PRODUCED LONG-TERM T-BOND
RETURNS OF CLOSE TO 13% LAST YEAR, AND RETURNS ON INTERMEDIATE-TERM TREASURIES
GOT CLOSE TO DOUBLE-DIGIT TERRITORY. WITH RISK AVERSION A DRIVING FORCE IN BONDS
DURING 1998, CORPORATE BONDS, HIGH-YIELD BONDS AND EMERGING MARKET DEBT DID NOT
FARE AS WELL AS TREASURIES; INVESTMENT-GRADE U.S. CORPORATES RETURNED ABOUT 9%,
WHILE JUNK BONDS MANAGED ONLY A 4% RETURN.
THE FOURTH QUARTER OF 1998 SAW THE U.S. BOND MARKET GIVE BACK SOME OF ITS
BIG THIRD-QUARTER GAINS. AS INTEREST RATE CUTS BY THE FEDERAL RESERVE RESTORED
INVESTOR CONFIDENCE, THE RENEWED APPEAL OF RISKIER ASSETS DREW FUNDS FROM U.S.
TREASURY BONDS. THE QUARTER'S MODEST BACK-UP IN YIELDS WAS NOT ENOUGH TO KEEP
1998 FROM BEING A GOOD YEAR FOR BONDS. WRIGHT BELIEVES THAT INTEREST RATES WILL
MOVE IRREGULARLY LOWER THIS YEAR. AS THE NEW YEAR BEGAN, DEFLATIONARY FORCES IN
MUCH OF THE WORLD WERE KEEPING INFLATION UNDER CONTROL. WHAT'S MORE, THE U.S.
ECONOMY ITSELF IS LIKELY TO SLOW BEFORE LONG. LOWER INTEREST RATES IN EUROPE AND
THE TRANSFORMATION OF U.S. BUDGET DEFICITS INTO SURPLUSES ARE ALSO GOOD NEWS FOR
BONDS. FEDERAL RESERVE MONETARY POLICY IS SOMEWHAT OF A QUESTION MARK FOR 1999.
LATE IN 1998, THE FED SHIFTED TO A NEUTRAL POLICY STANCE FROM ITS PREVIOUS BIAS
TOWARDS MONETARY EASE. THERE IS EVEN A CHANCE THAT THE FED COULD TIGHTEN - IN
SUPPORT OF A FALLING DOLLAR, FOR EXAMPLE. WITH ANY RENEWAL OF WEAKNESS IN
FINANCIAL MARKETS OR SIGNS THAT ASIA'S RECESSION THREATENS TO BRING THE
EIGHT-YEAR U.S. EXPANSION TO AN END, THE 30-YEAR TREASURY BOND YIELD SHOULD HIT
4.5% SOMETIME IN 1999.
<TABLE>
<CAPTION>
1998 1998 1997 1996 1995 1994 1993 1992 1991
Total Return Q4 Year Year Year Year Year Year Year Year
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
U.S. Treasury Money Mkt (WTMM) 1.2% 4.7% 4.8% 4.9% 5.3% 3.6% 2.5% 3.3% n.a.
U.S. Gov't Near-Term Bonds (WNTB) 0.4% 6.0% 5.9% 3.9% 11.9% -3.1% 8.0% 6.3% 13.1%
U.S. Treasury Bonds (WUSTB) -0.6% 10.0% 9.1% -1.2% 28.2% -8.7% 15.9% 7.1% 17.6%
Total Return Bonds (WTRB) -0.3% 9.6% 9.3% 0.9% 22.0% -6.6% 11.0% 7.1% 15.4%
Current Income (WCIF)
Standard Shares 0.5% 6.5% 8.6% 4.3% 17.5% -3.3% 6.6% 6.7% 15.3%
Institutional Shares 0.7% 6.6% 4.4%* - - - - - -
- ------------------------------------------------------------------------------------------------------------------------------
*: For the period from July 7, 1997 (start of business) to December 31, 1997.
</TABLE>
WRIGHT U.S. TREASURY MONEY MARKET FUND
For the final quarter of 1998, the Wright U.S. Treasury Money Market Fund
(WTMM) earned a total return of 1.1%, bringing to 4.7% its total return for all
of 1998. Comparable results for the average Treasury money market fund were 1.1%
and 4.8%. At December 31, 1998, the WTMM had an average maturity of around 79
days; 12 months earlier, it was 83 days. Rates on 90-day T-bills increased 12
basis points in the fourth quarter; for all of 1998, bill rates declined 88
basis points (to 4.5% on a coupon equivalent basis).
Three quarter-point reductions in the federal funds rate in the fourth
quarter might ordinarily have brought T-Bill rates lower; but with Fed easing,
fears of a global credit crunch subsided and yields edged higher. As 1999
begins, signs of a robust U.S.
<PAGE>
economy and a frothy stock market reduce the likelihood of further interest
rate cuts by the Fed - barring a collapse in Brazil or some other global
calamity. At the same time, no big upside move in rates is expected; money
market returns will probably remain in the 4.5% to 5% range this year.
WRIGHT U.S. GOVERNMENT NEAR TERM FUND
The Wright U.S. Government Near-Term Fund (WNTB) had a total return of 0.4%
in the fourth quarter of 1998, slightly better than the 0.3% return estimated
for the Morningstar government near-term bond fund average but behind the 1.1%
earned on 90-day T-bills for the quarter. Effective July 1, 1998, the WNTB began
investing in U.S. government agency issues - in addition to its original mandate
in Treasury securities. By December 31, with a widening in spreads over Treasury
securities, agency issues grew to 28% of portfolio holdings.
For all of 1998, the WNTB Fund earned a total return of 6.0%, as compared
with 6.6% for the Morningstar average of government near-term bond funds and
4.9% for 90-day Treasury bills. The WNTB had an average duration of 1.8 years at
year-end 1998, the same as one year earlier. The Fund's average yield to
maturity was 4.8% at December 31, versus 5.6% 12 months earlier.
WRIGHT U.S. TREASURY FUND
The Wright U.S. Treasury Fund (WUSTB), which invests strictly in U.S.
Treasury issues, had a 0.6% decline during the fourth quarter, as bond yields
edged slightly higher over the final three months of 1998. Nevertheless, for the
entire year, the WUSTB Fund earned a 10.0% total return as intermediate- and
long-term Treasury bond yields declined roughly 90 basis points.
WUSTB's 1998 results were significantly better than the 5.6% total return
of the Lipper fixed-income fund average and about 50 basis points ahead of the
9.5% return indicated by the Lehman government/corporate bond average. Long-term
Treasury bonds were the star sector of the U.S. bond market last year,
benefiting as 1) investors spooked by the Asian/Russian/Brazilian crisis sought
the safety of U.S. Treasuries and 2) long-term interest rates fell nearly one
percentage point. Because of its above-benchmark duration (5.7 years versus 5.6
years for Lehman's government/corporate average), WUSTB Fund's fourth-quarter
return trailed the market and the average bond fund slightly in the fourth
quarter. The Fund's yield to maturity fell to 4.9% from 5.8% during 1998.
WRIGHT TOTAL RETURN BOND FUND
During 1998, a year of rising global financial tensions, the Wright Total
Return Bond Fund (WTRB) benefited from the high-quality of its holdings: U.S.
Treasury bonds (44% of assets at 12/31/98), high-grade corporates (32%),
government agency issues (16%) and mortgage-backed securities (8%). The slightly
longer-than-benchmark duration of holdings also aided 1998 performance, as bond
yields fell. WTRB Fund had a 9.6% total return for the 12 months of 1998. During
the fourth quarter, credit market pressures abated and yields edged higher,
causing WTRB to lose 0.3%.
<PAGE>
For the full year, WTRB's 9.6% return edged out the 9.5% return for the
Lehman government/corporate bond average and easily outdistanced the 5.6% return
of the Lipper fixed-income fund composite. WTRB Fund's slight loss for the
fourth quarter trailed the Lipper average fund return of 0.6% and the Lehman
government/corporate index's 0.1% return. At year-end, the yield to maturity on
the WTRB was 5.3%, down from 6.0% 12 months earlier. The Fund's average duration
was 6.0 years, as compared with 6.2 years at December 31, 1997.
WRIGHT CURRENT INCOME FUND
The Wright Current Income Fund (WCIF) invests in Ginnie Mae securities
(mortgage-based securities backed by the U.S. government). Standard and
Institutional shares of the Fund had 0.5% and 0.7% returns, respectively, in the
fourth quarter of 1998, bringing the full-year returns to 6.5% and 6.6%,
respectively, for Standard and Institutional Shares; returns for the Morningstar
government mortgage fund average were 0.3% and 6.3% for the same periods.
Liquidity concerns and a rise in prepayment risk caused mortgage-backed issues
to underperform Treasury bonds last year. In the fourth quarter, the reverse was
true: Federal Reserve easing reduced liquidity concerns in the credit markets,
causing mortgage spreads with Treasuries to narrow and leading to
better-than-Treasury performance for mortgages. At year-end 1998, the WCIF
Fund's average duration was estimated to be 3.9 years; the indicated annual
yield for this fund was 6.4%.
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
12/31/90 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%
12/31/98 9181.43 5.09%
- --------------------------------------------------------------------------------
<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. Lipper Growth Fund is an
average of 1,139 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 1,679 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 2,013
fixed income funds. Morningstar Government (1-5) is an average of 127
general government funds with average maturities of one to five years. The
investment results of Funds with less than 10 years are shown from the first
month-end since the Fund's inception for comparison with other averages.
------------------------------
WRIGHT MANAGED EQUITY TRUST
WRIGHT SELECTED BLUE CHIP EQUITIES FUND
Growth of $10,000 invested 12/31/88 through 12/31/98
Annual Total Return
Lst 1 Yr Lst 5 Yrs Lst 10 Yrs
Wright Selected Blue Chip Equities Fund 0.1% 14.7% 13.2%
Lipper Growth Funds 22.9% 18.6% 16.3%
NYSE 18.5% 20.9% 17.6%
The cumulative total return of a U.S. $10,000 investment in the WRIGHT SELECTED
BLUE CHIP EQUITIES FUND on 12/31/88 would have grown to $34,684 by
December 31, 1998
The following plotting points are used for comparison
in the total investment return mountain chart.
Date Wright Selected Lipper Equity NYSE
Blue Chip Fund Growth Fund Index
12/31/88 $10,000 $10,000 $10,000
12/31/89 $12,457 $12,561 $12,928
12/31/90 $12,045 $11,868 $12,434
12/31/91 $16,380 $16,140 $16,344
12/31/92 $17,152 $17,395 $17,657
12/31/93 $17,506 $19,246 $19,604
12/31/94 $16,890 $18,833 $19,581
12/31/95 $22,013 $24,632 $26,410
12/31/96 $26,102 $29,368 $32,197
12/31/97 $34,637 $36,728 $42,777
12/31/98 $34,684 $45,124 $50,708
- -------------------------------------------------------------------------------
WRIGHT MANAGED EQUITY TRUST
WRIGHT JUNIOR BLUE CHIP EQUITIES FUND
Growth of $10,000 invested 12/31/88 through 12/31/98
Annual Total Return
Lst 1 Yr Lst 5 Yrs Lst 10 Yrs
Wright Junior Blue Chip Equitie Fund -4.9% 11.1% 10.3%
Value Line Stock Index -1.0% 11.6% 10.2%
NYSE 18.5% 20.9% 17.6%
The cumulative total return of a U.S. $10,000 investment in the
WRIGHT JUNIOR BLUE CHIP EQUITIES FUND on 12/31/88 would have grown to $26,652
by December 31, 1998.
The following plotting points are used for comparison in the total investment
return mountain chart.
Date Wright Junior Value Line NYSE
Blue Chip Fund Stock Index Index
12/31/88 $10,000 $10,000 $10,000
12/31/89 $11,561 $11,489 $12,928
12/31/90 $10,335 $9,081 $12,434
12/31/91 $14,157 $12,009 $16,344
12/31/92 $14,621 $13,330 $17,657
12/31/93 $15,780 $15,265 $19,604
12/31/94 $15,347 $14,870 $19,581
12/31/95 $18,495 $18,338 $26,410
12/31/96 $21,737 $21,462 $32,197
12/31/97 $28,024 $26,712 $42,777
12/31/98 $26,652 $26,428 $50,708
- --------------------------------------------------------------------------------
WRIGHT MANAGED EQUITY TRUST
WRIGHT MAJOR BLUE CHIP EQUITIES FUND
Growth of $10,000 invested 12/31/88 through 12/31/98
Annual Total Return
Lst 1 Yr Lst 5 Yrs Lst 10 Yrs
Wright MAJOR BLUE CHIP Equities Fund 20.4% 19.4% 16.0%
Lipper Growth Funds 22.9% 18.6% 16.3%
NYSE 18.5% 20.9% 17.6%
The cumulative total return of a U.S. $10,000 investment in the
WRIGHT MAJOR BLUE CHIP EQUITIES FUND on 12/31/88 would have grown to $43,960
by December 31, 1998.
The following plotting points are used for comparison in the total investment
return mountain chart.
Date Wright Major Blue Lipper Equity NYSE
Chip Fund Growth Funds Index
12/31/88 $10,000 $10,000 $10,000
12/31/89 $12,302 $12,561 $12,928
12/31/90 $11,947 $11,868 $12,434
12/31/91 $16,594 $16,140 $16,344
12/31/92 $17,925 $17,395 $17,657
12/31/93 $18,104 $19,246 $19,604
12/31/94 $17,972 $18,833 $19,581
12/31/95 $23,182 $24,632 $26,410
12/31/96 $27,270 $29,368 $32,197
12/31/97 $36,504 $36,728 $42,777
12/31/98 $43,960 $45,124 $50,708
- --------------------------------------------------------------------------------
<PAGE>
WRIGHT MANAGED EQUITY TRUST
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND - STANDARD SHARES
Growth of $10,000 invested 9/30/89* through 12/31/98
Annual Total Return
Lst 1 Yr Lst 5 Yrs Since Incept*
Wright Int'l Blue Chip Equities Fund -
Standard Shares 6.1% 7.8% 7.9%
FT World Ex U.S. Index 16.2% 8.3% 5.0%
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 $20,148 by
December 31, 1998.
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
12/31/98 $20,148 $15,682
- --------------------------------------------------------------------------------
WRIGHT MANAGED EQUITY TRUST
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND - INSTITUTIONAL SHARES
Growth of $10,000 invested 7/31/97* through 12/31/98
Annual Total Return
Lst 1 Yr Since Incept*
Wright Int'l Blue Chip Equities Fund 7.5% 1.5%
FT World Ex U.S. Index 16.2% 2.4%
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 grown to $10,211
by December 31, 1998.
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
12/31/98 $10,211 $10,343
- --------------------------------------------------------------------------------
WRIGHT MANAGED INCOME TRUST
WRIGHT U.S. GOVERNMENT NEAR TERM FUND
Growth of $10,000 invested 12/31/88 through 12/31/98
Annual Total Return
Lst 1 Yr Lst 5 Yrs Lst 10 Yrs
Wright U.S. Government
Near Term Fund 6.0% 4.8% 7.0%
Lehman Gov't/Corp Index 9.5% 7.3% 9.3%
Morningstar Gov't(1-5 Yrs)Funds 6.3% 5.0% 6.9%
The cumulative total return of a U.S. $10,000 investment in the
WRIGHT U.S.GOVERNMENT NEAR TERM FUND on 12/31/88 would have grown to $19,753
by December 31, 1998.
The following plotting points are used for comparison in the total investment
return mountain chart.
Date Wright U.S. Government Lehman Gov't/Corp Morningstar Gov't
Near Term Bond Fund Index (1-5 Yrs) Funds
12/31/88 $10,000 $10,000 $10,000
12/31/89 $11,117 $11,424 $11,080
12/31/90 $12,032 $12,370 $12,033
12/31/91 $13,606 $14,364 $13,610
12/31/92 $14,457 $15,453 $14,367
12/31/93 $15,607 $17,158 $15,246
12/31/94 $15,124 $16,556 $14,934
12/31/95 $16,929 $19,742 $16,635
12/31/96 $17,596 $20,315 $17,170
12/31/97 $18,639 $22,297 $18,325
12/31/98 $19,753 $24,410 $19,480
- --------------------------------------------------------------------------------
WRIGHT MANAGED INCOME TRUST
WRIGHT U.S. TREASURY FUND
Growth of $10,000 invested 12/31/88 through 12/31/98
Annual Total Return
Lst 1 Yr Lst 5 Yrs Lst 10 Yrs
Wright U.S. Treasury Fund 10.0% 6.8% 9.6%
Lehman Gov't/Corp Index 9.5% 7.3% 9.3%
Lipper Fixed Income Fund 5.6% 6.0% 7.9%
The cumulative total return of a U.S. $10,000 investment in the
WRIGHT U.S. TREASURY FUND on 12/31/88 would have grown to $25,016 by
December 31, 1998.
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
12/31/88 $10,000 $10,000 $10,000
12/31/89 $11,626 $11,424 $10,945
12/31/90 $12,362 $12,370 $11,409
12/31/91 $14,533 $14,364 $13,485
12/31/92 $15,560 $15,453 $14,541
12/31/93 $18,035 $17,158 $15,950
12/31/94 $16,480 $16,556 $15,431
12/31/95 $21,124 $19,742 $17,776
12/31/96 $20,857 $20,315 $18,610
12/31/97 $22,752 $22,297 $20,222
12/31/98 $25,016 $24,410 $21,357
- --------------------------------------------------------------------------------
<PAGE>
WRIGHT MANAGED INCOME TRUST
WRIGHT TOTAL RETURN BOND FUND
Growth of $10,000 invested 12/31/88 through 12/31/98
Annual Total Return
Lst 1 Yr Lst 5 Yrs Lst 10 Yrs
Wright Total Return Bond Fund 9.6% 6.6% 8.5%
Lehman Gov't/Corp Index 9.5% 7.3% 9.3%
Lipper Fixed Income Funds 5.6% 6.0% 7.9%
The cumulative total return of a U.S. $10,000 investment in the
WRIGHT TOTAL RETURN BOND FUND on 12/31/88 would have grown to $22,591 by
December 31, 1998.
The following plotting points are used for comparison in the total investment
return mountain chart.
Date Wright Total Retun Lehman Gov't/Corp Lipper Fixed
Bond Fund Index Income Funds
12/31/88 $10,000 $10,000 $10,000
12/31/89 $11,358 $11,424 $10,945
12/31/90 $11,959 $12,370 $11,409
12/31/91 $13,799 $14,364 $13,485
12/31/92 $14,782 $15,453 $14,541
12/31/93 $16,412 $17,158 $15,950
12/31/94 $15,337 $16,556 $15,431
12/31/95 $18,706 $19,742 $17,776
12/31/96 $18,874 $20,315 $18,610
12/31/97 $20,619 $22,297 $20,222
12/31/98 $22,591 $24,410 $21,357
- --------------------------------------------------------------------------------
WRIGHT MANAGED INCOME TRUST
WRIGHT CURRENT INCOME FUND - STANDARD SHARES
Growth of $10,000 invested 12/31/88 through 12/31/98
Annual Total Return
Lst 1 Yr Lst 5 Yrs Lst 10 Yrs
Wright Current Income Fund 6.5% 6.5% 8.5%
Lehman Gov't/Corp Index 9.5% 7.3% 9.3%
Lehman Mtg-Backed index 7.0% 7.2% 9.1%
The cumulative total return of a U.S. $10,000 investment in the WRIGHT CURRENT
INCOME BOND FUND on 12/31/88 would have grown to $22,549 by December 31, 1998.
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
12/31/88 $10,000 $10,000 $10,000
12/31/89 $11,415 $11,424 $11,535
12/31/90 $12,539 $12,370 $12,772
12/31/91 $14,459 $14,364 $14,779
12/31/92 $15,433 $15,453 $15,809
12/31/93 $16,450 $17,158 $16,890
12/31/94 $15,911 $16,556 $16,618
12/31/95 $18,689 $19,742 $19,411
12/31/96 $19,501 $20,315 $20,449
12/31/97 $21,171 $22,297 $22,390
12/31/98 $22,549 $24,410 $23,948
- --------------------------------------------------------------------------------
WRIGHT MANAGED INCOME TRUST
WRIGHT CURRENT INCOME FUND - INSTITUTIONAL SHARES
Growth of $10,000 invested 7/31/97* through 12/31/98
Annual Total Return
Lst 1 Yr Since Incept*
Wright Current Income Fund 6.6% 7.0%
LehmanGov't/Corp Index 9.5% 9.3%
LehmanMtg-Backed Index 7.0% 7.4%
The cumulative total return of a U.S. $10,000 investment in the WRIGHT CURRENT
INCOME BOND FUND on 7/31/97 would have grown to $11,000 by December 31, 1998.
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
07/31/97 $10,000 $10,000 $10,000
12/31/97 $10,323 $10,365 $10,342
12/31/98 $11,000 $11,347 $11,061
- --------------------------------------------------------------------------------
<PAGE>
DIVIDEND DISTRIBUTIONS
================================================================================
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
N.A.V. Distri- Distri- 12 Month 5 Year 10 Year Cum.
Period Per bution bution Shares Invstmnt Invstmnt Invstmnt Invstmnt
Ending Share $ P/S in Shares Owned Value Return Return Return Return
(Annualized) (Annualized) (Annualized)
- --------------------------------------------------------------------------------------------------------------------------------
THE EQUITY TRUST -- WRIGHT SELECTED BLUE CHIP EQUITIES FUND (WBC)
1/4/83 $10.00 100.00 $1,000.00
Dec. 97 19.20 2.225 0.119303 370.80 7,119.36 32.70% 15.09% 15.44% 13.99%
Jan.98 19.09 370.80 7,078.57 29.53% 15.23% 14.72% 13.86%
Feb.98 20.49 370.80 7,597.69 36.01% 16.87% 14.79% 14.32%
Mar.98 21.25 0.025 0.001172 371.23 7,888.64 45.10% 17.38% 15.22% 14.52%
Apr.98 21.27 371.23 7,896.06 40.46% 18.22% 15.17% 14.44%
May 98 20.40 371.23 7,573.09 25.99% 16.62% 14.77% 14.05%
Jun.98 20.00 0.020 0.001009 371.60 7,432.00 19.76% 16.63% 13.86% 13.83%
Jul.98 18.74 371.60 6,963.87 5.05% 15.46% 13.30% 13.27%
Aug.98 15.68 371.60 5,826.76 -11.88% 10.74% 11.59% 11.92%
Sep.98 16.14 0.020 0.001217 372.06 6,005.00 -12.81% 11.51% 11.50% 12.06%
Oct.98 17.86 372.06 6,644.93 0.44% 13.42% 12.39% 12.72%
Nov.98 18.46 372.06 6,868.17 0.06% 14.55% 13.03% 12.88%
Dec.98 17.63 1.461 0.086861 404.37 7,129.11 0.14% 14.65% 13.24% 13.07%
- -------------------------------------------------------------------------------------------------------------------------------
THE EQUITY TRUST -- WRIGHT JUNIOR BLUE CHIP EQUITIES FUND (WJBC)
1/15/85 $10.00 100.00 $1,000.00
Dec. 97 10.48 0.880 0.085437 394.06 4,129.75 28.92% 13.90% 12.43% 11.57%
Jan.98 10.46 394.06 4,121.87 26.68% 13.77% 12.21% 11.47%
Feb.98 11.09 394.06 4,370.12 31.96% 15.21% 11.87% 11.90%
Mar.98 11.32 394.06 4,460.76 37.33% 15.33% 11.69% 11.99%
Apr.98 11.20 394.06 4,413.47 34.97% 15.88% 11.63% 11.82%
May 98 10.84 394.06 4,271.61 20.23% 14.38% 11.49% 11.47%
Jun.98 10.55 394.06 4,157.33 12.54% 14.24% 10.54% 11.17%
Jul.98 9.76 394.06 3,846.00 -0.48% 12.38% 9.89% 10.46%
Aug.98 8.13 394.06 3,203.68 -17.95% 7.55% 8.42% 8.92%
Sep.98 8.68 394.06 3,420.42 -19.20% 8.71% 8.87% 9.39%
Oct.98 9.09 394.06 3,581.98 -10.95% 9.45% 9.35% 9.69%
Nov.98 9.72 394.06 3,830.24 -6.63% 11.42% 10.42% 10.16%
Dec.98 9.92 0.045 0.004712 395.91 3,927.47 -4.90% 11.05% 10.30% 10.30%
- --------------------------------------------------------------------------------------------------------------------------------
THE EQUITY TRUST -- WRIGHT MAJOR BLUE CHIP EQUITIES FUND (WMBC)
7/22/85 $10.00 100.00 $1,000.00
Dec. 97 12.02 1.955 0.165818 474.68 5,705.65 33.86% 15.29% 15.59% 15.02%
Jan.98 12.09 474.68 5,738.88 30.15% 15.66% 15.17% 14.97%
Feb.98 13.05 474.68 6,194.57 37.91% 17.53% 15.29% 15.57%
Mar.98 13.56 0.015 0.001107 475.20 6,443.71 48.63% 18.20% 15.78% 15.81%
Apr.98 13.65 475.20 6,486.48 42.17% 19.17% 15.91% 15.76%
May 98 13.44 475.20 6,386.69 30.57% 18.22% 15.80% 15.51%
Jun.98 13.66 0.010 0.000740 475.55 6,496.01 27.01% 19.08% 15.36% 15.56%
Jul.98 12.96 475.55 6,163.17 10.89% 18.37% 14.96% 14.99%
Aug.98 11.30 475.55 5,373.75 -0.10% 14.47% 13.74% 13.69%
Sep.98 11.67 0.010 0.000840 475.95 5,554.37 -1.72% 15.37% 13.66% 13.88%
Oct.98 12.89 475.95 6,135.03 13.89% 17.14% 14.61% 14.64%
Nov.98 13.82 475.95 6,577.67 17.06% 18.97% 15.73% 15.14%
Dec.98 13.67 0.730 0.056068 502.64 6,871.06 20.43% 19.41% 15.96% 15.42%
- -------------------------------------------------------------------------------------------------------------------------------
<PAGE>
THE EQUITY TRUST -- WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC)
Standard Shares
9/14/89 $10.00 100.00 $1,000.00
Dec. 97 16.02 0.370 0.023359 120.04 1,923.04 1.53% 11.93% -- 8.20%
Jan.98 16.00 120.04 1,920.64 3.46% 11.94% -- 8.10%
Feb.98 17.11 120.04 2,053.88 9.10% 12.88% -- 8.88%
Mar.98 17.84 0.064 0.003563 120.46 2,149.01 15.01% 12.88% -- 9.37%
Apr.98 17.92 120.46 2,158.64 16.40% 12.21% -- 9.33%
May 98 17.89 120.46 2,155.03 11.48% 11.94% -- 9.22%
Jun.98 17.41 120.46 2,097.21 4.01% 12.07% -- 8.79%
Jul.98 17.44 120.46 2,100.91 3.71% 11.89% -- 8.72%
Aug.98 14.75 120.46 1,776.86 -6.32% 6.77% -- 6.63%
Sep.98 14.50 120.46 1,746.74 -13.52% 6.50% -- 6.36%
Oct.98 15.58 120.46 1,876.84 -0.37% 7.17% -- 7.14%
Nov.98 16.30 120.46 1,963.58 3.72% 8.75% -- 7.60%
Dec.98 16.02 0.882 0.057609 127.40 2,041.02 6.14% 7.77% -- 7.98%
- -------------------------------------------------------------------------------------------------------------------------------
THE EQUITY TRUST -- WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC)
Institutional Shares
7/07/97 $10.00 100.00 $1,000.00
Dec. 97 9.13 0.230 0.025471 102.55 936.28 -- -- -- -6.37%*
Jan.98 9.12 102.55 935.26 -- -- -- -6.48%*
Feb.98 9.76 102.55 1,000.89 -- -- -- 0.09%*
Mar.98 10.15 0.064 0.006262 103.19 1,047.38 -- -- -- 4.74%*
Apr.98 10.20 103.19 1,052.54 -- -- -- 5.25%*
May 98 10.18 103.19 1,050.47 -- -- -- 5.05%*
Jun.98 10.01 103.19 1,032.93 -- -- -- 3.29%*
Jul.98 10.03 103.19 1,034.99 4.97% -- -- 3.27%
Aug.98 8.49 103.19 876.08 -5.08% -- -- -10.84%
Sep.98 8.34 103.19 860.60 -12.45% -- -- -11.45%
Oct.98 8.96 103.19 924.58 0.83% -- -- -5.77%
Nov.98 9.39 103.19 968.95 5.09% -- -- -2.23%
Dec.98 8.75 0.962 0.115072 115.06 1,006.80 7.54% -- -- 0.46%
- ---------------------------------------------------------------------------------------------------------------------------------
*: Investment return from the inception, July 7, 1997 to December 31, 1998.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INCOME TRUST -- WRIGHT U.S. TREASURY MONEY MARKET FUND (WTMM)
MONTHLY CUMULATIVE ANNUALIZED INVESTMENT RETURN
MONTH NET INCOME RETURN ______________________________________
ENDING PER SHARE PER SHARE (a) 1 Month 3 Month Cumulative
- --------------------------------------------------------------------------------------------------------------------------------
$1,000.00
<S> <C> <C> <C> <C> <C>
Jan. 31 $0.004047616 1,004.05 4.77% -- 4.77%
Feb. 28 0.003642645 1,007.71 4.75% -- 4.77%
Mar. 31 0.004043263 1,011.78 4.76% 4.78% 4.78%
Apr. 30 0.003915946 1,015.74 4.76% 4.78% 4.79%
May 31 0.003968376 1,019.77 4.67% 4.75% 4.78%
Jun. 30 0.003829436 1,023.68 4.66% 4.72% 4.77%
Jul. 31 0.003982139 1,027.75 4.69% 4.69% 4.78%
Aug. 31 0.004005105 1,031.87 4.72% 4.71% 4.79%
Sep. 30 0.003845250 1,035.84 4.68% 4.71% 4.79%
Oct. 31 0.003851714 1,039.83 4.54% 4.66% 4.78%
Nov. 30 0.003552664 1,043.52 4.32% 4.53% 4.76%
Dec. 31 0.003607565 1,047.29 4.25% 4.38% 4.73%
----------
Total $0.046291719
(a): Assumes reinvestment of monthly dividends.
</TABLE>
- -------------------------------------------------------------------------------
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
N.A.V. Distri- Distri- 12 Month 5 Year 10 Year Cum.
Period Per bution bution Shares Invstmnt Invstmnt Invstmnt Invstmnt
Ending Share $ P/S in Shares Owned Value Return Return Return Return
(Annualized) (Annualized) (Annualized)
- ----------------------------------------------------------------------------------------------------------------------------------
THE INCOME TRUST -- WRIGHT U.S. GOVERNMENT NEAR TERM FUND (WNTB)
7/25/83 $10.00 100.000 $1,000.00
12/97 10.24 0.049720 0.004855 298.090 3,052.44 5.93% 5.21% 7.02% 8.04%
1/98 10.29 0.048983 0.004760 299.509 3,081.95 6.53% 5.01% 6.88% 8.06%
2/98 10.24 0.043842 0.004281 300.792 3,080.11 6.20% 4.68% 6.76% 8.01%
3/98 10.23 0.049929 0.004881 302.260 3,092.12 6.83% 4.67% 6.84% 7.99%
4/98 10.22 0.047809 0.004678 303.674 3,103.55 6.40% 4.59% 6.90% 7.97%
5/98 10.22 0.048178 0.004714 305.105 3,118.17 6.33% 4.75% 6.99% 7.96%
6/98 10.22 0.047654 0.004663 306.528 3,132.72 6.11% 4.54% 6.90% 7.95%
7/98 10.21 0.047539 0.004656 307.955 3,144.22 5.35% 4.58% 6.95% 7.93%
8/98 10.28 0.047393 0.004610 309.375 3,180.37 6.56% 4.49% 7.07% 7.96%
9/98 10.37 0.046253 0.004460 310.755 3,222.53 7.23% 4.67% 7.05% 8.01%
10/98 10.35 0.047165 0.004557 312.171 3,230.97 6.77% 4.71% 6.97% 7.98%
11/98 10.29 0.045655 0.004437 313.556 3,226.49 6.42% 4.83% 7.01% 7.93%
12/98 10.27 0.046913 0.004568 314.988 3,234.93 5.98% 4.82% 7.04% 7.90%
---------
Total $0.567311
- --------------------------------------------------------------------------------------------------------------------------------
THE INCOME TRUST -- WRIGHT U.S. TREASURY FUND (WUSTB)
7/25/83 $10.00 100.000 $1,000.00
12/97 13.95 0.055733 0.003995 299.136 4,172.95 9.09% 7.90% 9.37% 10.40%
1/98 14.13 0.059985 0.004245 300.389 4,244.50 10.94% 7.64% 9.02% 10.47%
2/98 14.00 0.054531 0.003895 301.559 4,221.83 10.46% 6.87% 8.83% 10.37%
3/98 13.96 0.064041 0.004587 302.943 4,229.08 12.30% 6.85% 9.14% 10.32%
4/98 13.95 0.062491 0.004480 304.300 4,224.98 10.50% 6.81% 9.31% 10.29%
5/98 14.02 0.063987 0.004564 305.689 4,285.76 11.23% 6.94% 9.58% 10.30%
6/98 14.12 0.062635 0.004436 307.045 4,335.48 11.19% 6.34% 9.33% 10.32%
7/98 14.07 0.064776 0.004604 308.458 4,340.01 7.85% 6.07% 9.53% 10.27%
8/98 14.43 0.064394 0.004462 309.835 4,470.91 12.67% 5.90% 9.81% 10.42%
9/98 14.84 0.059087 0.003982 311.068 4,616.25 14.45% 6.49% 9.80% 10.60%
10/98 14.72 0.061282 0.004163 312.363 4,597.99 11.78% 6.29% 9.52% 10.51%
11/98 14.60 0.061014 0.004179 313.669 4,579.56 10.98% 6.76% 9.66% 10.42%
12/98 14.40 0.227935 0.015710 318.612 4,588.01 9.95% 6.76% 9.60% 10.37%
---------
Total $0.906157
- ----------------------------------------------------------------------------------------------------------------------------------
THE INCOME TRUST -- WRIGHT TOTAL RETURN BOND FUND (WTRB)
7/25/83 $10.00 100.000 $1,000.00
12/97 12.93 0.059800 0.004625 296.133 3,829.00 9.25% 6.88% 8.26% 9.75%
1/98 13.09 0.059616 0.004554 297.481 3,894.03 11.11% 6.72% 7.98% 9.81%
2/98 12.98 0.055921 0.004308 298.763 3,877.94 10.80% 6.15% 7.81% 9.73%
3/98 12.92 0.092246 0.007140 300.897 3,887.59 12.73% 6.11% 8.02% 9.69%
4/98 12.91 0.057672 0.004467 302.241 3,901.94 11.35% 6.03% 8.17% 9.66%
5/98 12.98 0.058086 0.004475 303.594 3,940.65 11.48% 6.28% 8.40% 9.67%
6/98 13.05 0.058115 0.004453 304.946 3,979.55 11.35% 5.98% 8.22% 9.69%
7/98 13.01 0.058174 0.004471 306.310 3,985.09 7.88% 5.95% 8.27% 9.64%
8/98 13.24 0.057956 0.004377 307.650 4,073.29 11.86% 5.89% 8.50% 9.75%
9/98 13.62 0.056848 0.004174 308.934 4,207.69 13.68% 6.43% 8.56% 9.93%
10/98 13.44 0.056668 0.004216 310.237 4,169.59 10.40% 6.18% 8.31% 9.80%
11/98 13.43 0.055648 0.004144 311.523 4,183.75 10.45% 6.61% 8.51% 9.77%
12/98 13.31 0.157365 0.011750 315.193 4,195.22 9.56% 6.81% 8.60% 9.80%
---------
Total $0.824314
- ---------------------------------------------------------------------------------------------------------------------------------
<PAGE>
THE INCOME TRUST -- WRIGHT CURRENT INCOME FUND (WCIF) - Standard Shares
4/14/87 $10.00 100.000 $1,000.00
12/97 10.63 0.055488 0.005220 225.288 2,394.81 8.56% 6.53% 8.69% 8.49%
1/98 10.68 0.054913 0.005142 226.447 2,418.45 9.03% 6.36% 8.36% 8.52%
2/98 10.64 0.055137 0.005182 227.620 2,421.88 8.74% 6.20% 8.23% 8.47%
3/98 10.62 0.053992 0.005084 228.777 2,429.61 10.48% 6.16% 8.38% 8.43%
4/98 10.63 0.053803 0.005061 229.935 2,444.21 9.50% 6.20% 8.49% 8.43%
5/98 10.66 0.053611 0.005029 231.092 2,463.44 9.28% 6.25% 8.66% 8.44%
6/98 10.64 0.053848 0.005061 232.261 2,471.26 8.31% 6.10% 8.42% 8.40%
7/98 10.63 0.054029 0.005083 233.442 2,481.49 6.86% 6.03% 8.48% 8.38%
8/98 10.67 0.053670 0.005030 234.616 2,503.35 8.15% 6.18% 8.55% 8.40%
9/98 10.77 0.053078 0.004928 235.772 2,539.27 8.20% 6.50% 8.46% 8.47%
10/98 10.68 0.052771 0.004941 236.937 2,530.49 6.77% 6.37% 8.17% 8.37%
11/98 10.68 0.052800 0.004944 238.109 2,543.00 7.15% 6.60% 8.38% 8.36%
12/98 10.66 0.052419 0.004917 239.279 2,550.72 6.51% 6.51% 8.47% 8.32%
---------
Total $0.644072
- -------------------------------------------------------------------------------------------------------------------------------
THE INCOME TRUST -- WRIGHT CURRENT INCOME FUND (WCII) - Institutional Shares
7/07/97 $10.00 100.000 $1,000.00
12/97 10.12 0.055263 0.005461 103.163 1,044.01 -- -- -- 4.40%*
1/98 10.16 0.053890 0.005304 103.710 1,053.69 -- -- -- 5.37%*
2/98 10.12 0.053892 0.005325 104.263 1,055.14 -- -- -- 5.51%*
3/98 10.10 0.052574 0.005205 104.805 1,058.53 -- -- -- 5.85%*
4/98 10.11 0.052364 0.005179 105.348 1,065.07 -- -- -- 6.51%*
5/98 10.14 0.052252 0.005153 105.891 1,073.73 -- -- -- 7.37%*
6/98 10.11 0.052439 0.005187 106.440 1,076.11 -- -- -- 7.61%*
7/98 10.11 0.050428 0.004988 106.971 1,081.48 6.93% -- -- 7.61%
8/98 10.14 0.050075 0.004938 107.500 1,090.05 8.17% -- -- 7.77%
9/98 10.23 0.051852 0.005069 108.044 1,105.29 8.24% -- -- 8.45%
10/98 10.15 0.051016 0.005026 108.587 1,102.16 6.83% -- -- 7.65%
11/98 10.16 0.047916 0.004716 109.100 1,108.45 7.18% -- -- 7.62%
12/98 10.15 0.046702 0.004601 109.602 1,112.46 6.56% -- -- 7.43%
---------
Total $0.615400
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
*: Investment return from the inception, July 7, 1997 to December 31, 1998.
<PAGE>
WRIGHT MANAGED EQUITY TRUST
STATEMENTS OF ASSETS AND LIABILITIES
December 31, 1998
================================================================================
<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............................... $ - $ - $ 40,072,657
Unrealized appreciation....................... - - 11,936,165
Investments in Portfolio, at value (identified cost,
$166,043,284 and $32,872,866, respectively,
for WBC and WJBC)........................... 221,656,678 34,303,476 -
------------ ------------ ------------
Total investments, at value (Note 1A)......... $221,656,678 $ 34,303,476 $ 52,008,822
Cash.......................................... - - 2,161
Receivable for Fund shares sold............... 162,774 456,610 -
Dividend and interest receivable.............. - - 36,853
Receivable for investments sold............... - - 235,555
------------ ------------ ------------
Total Assets............................. $221,819,452 $ 34,760,086 $ 52,283,391
------------ ------------ ------------
LIABILITIES:
Payable for Fund shares reacquired............ $ 840,945 $ 236,541 $ 77,391
Payable for investments purchased............. - - 1,315,522
Distributions payable......................... 672 655 98
Accrued expenses and other liabilities........ 13,268 6,231 7,254
Distribution fee payable...................... - - 4,660
------------ ------------ ------------
Total Liabilities......................... $ 854,885 $ 243,427 $ 1,404,925
------------ ------------ ------------
NET ASSETS....................................... $220,964,567 $ 34,516,659 $ 50,878,466
============= ============= =============
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........................ $164,794,078 $ 33,455,919 $ 39,172,057
Accumulated undistributed net realized gain (loss)
on investments and foreign currency (computed
on the basis of identified cost)............ (367,285) - (17,271)
Unrealized appreciation of investments and trans-
lation of assets and liabilities in foreign currency
(computed on the basis of identified cost).. 55,613,394 1,430,610 11,936,165
Undistributed (distributions in excess of) net
investment income........................... 924,380 (369,870) (212,485)
------------ ------------ ------------
Net assets applicable to outstanding shares. $220,964,567 $ 34,516,659 $ 50,878,466
============= ============= =============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING................................. 12,530,224 3,479,162 3,722,975
============= ============= =============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST...................... $17.63 $9.92 $13.67
============= ============= =============
+ The Wright Major Blue Chip Equities Fund does not invest in a corresponding
master portfolio.
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT MANAGED EQUITY TRUST
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1998
================================================================================
<TABLE>
<CAPTION>
Wright International
Blue Chip
Equities Fund
(WIBC)
- ------------------------------------------------------------------------------------------------------------------
ASSETS:
Investments -
<S> <C>
Investment in Portfolio, at value (identified cost, $170,439,308) (Note 1A) $212,230,531
Receivable for Fund shares sold..................................... 63,423
------------
Total Assets.................................................... $ 212,293,954
------------
LIABILITIES:
Payable for Fund shares reacquired.................................. $ 436,465
Distributions payable............................................... 2,970
Accrued expenses and other liabilities.............................. 17,184
------------
Total Liabilities............................................... $ 456,619
------------
NET ASSETS............................................................. $ 211,837,335
==============
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.............................................. $ 168,374,534
Accumulated undistributed net realized gain on
investments and foreign currency (computed
on the basis of identified cost).................................. 2,433,435
Unrealized appreciation of investments and trans-
lation of assets and liabilities in foreign currency
(computed on the basis of identified cost)........................ 41,732,186
Distributions in excess of net investment income.................... (702,820)
------------
Net assets applicable to outstanding shares....................... $ 211,837,335
=============
Computation of net asset value, offering and redemption price per share:
Standard shares:
Net assets...................................................... $ 193,326,527
=============
Shares of beneficial interest outstanding....................... 12,065,386
=============
Net asset value, offering price, and redemption price per share
of beneficial interest........................................ $ 16.02
=============
Institutional shares:
Net assets...................................................... $ 18,510,808
=============
Shares of beneficial interest outstanding....................... 2,114,771
=============
Net asset value, offering price, and redemption price per share
of beneficial interest........................................ $ 8.75
=============
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT MANAGED EQUITY TRUST
STATEMENTS OF OPERATIONS
For the Year Ended December 31, 1998
================================================================================
<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................................. $ - $ - $ 440,609 $ -
Interest income................................. - - 57,243 -
Dividend income allocated from Portfolio........ 3,749,260 382,152 - 4,533,826
Interest income allocated from Portfolio........ 215,554 33,792 - 554,817
Less: Foreign taxes from Portfolio.............. - - - (503,355)
Expenses allocated from Portfolio............... (1,953,126) (305,797) - (2,599,737)
------------ ------------ ------------ ------------
Investment income.............................. $ 2,011,688 $ 110,147 $ 497,852 $ 1,985,551
------------ ------------ ------------ ------------
Expenses -
Investment Adviser fee (Note 2)................. $ - $ - $ 145,057 $ -
Administrator fee (Note 2)...................... 56,229 12,131 70,463 56,746
Compensation of Trustees not affiliated with the
Investment Adviser or Administrator............ 4,535 4,375 4,158 3,647
Custodian fee (Note 1D) - Standard shares (Note 1D) 27,656 13,751 41,821 24,287
Custodian fee (Note 1D) - Institutional shares (Note 1D) - - - 10,251
Distribution expenses-Standard shares (Note 3).. 630,542 86,523 80,578 540,793
Transfer and dividend disbursing agent
fees-Standard shares.......................... 75,177 12,336 6,832 75,640
Transfer and dividend disbursing agent
fees-Institutional shares..................... - - - 9,455
Printing........................................ 426 9,012 5,613 2,864
Audit services.................................. 12,900 13,300 30,600 12,900
Legal services.................................. 3,751 2,584 3,751 3,751
Registration costs - Standard shares............ 27,012 20,800 16,585 22,705
Registration costs - Institutional shares....... - - - 6,780
Miscellaneous................................... 6,296 4,094 7,235 4,435
------------ ------------ ------------ ------------
Total expenses................................. $ 844,524 $ 178,906 $ 412,693 $ 774,254
------------ ------------ ------------ ------------
Deduct -
Reduction of distribution expenses by Principal
Underwriter (Note 3) ........................... $ - $ 86,523 $ 68,917 $ -
Reduction of Custodian fee (Note 1D)............ - - 5,354 -
------------ ------------ ------------ ------------
Total deductions............................... $ - $ 86,523 $ 74,271 $ -
------------ ------------ ------------ ------------
Net expenses................................. $ 844,524 $ 92,383 $ 338,422 $ 774,254
------------ ------------ ------------ ------------
Net investment income...................... $ 1,167,164 $ 17,764 $ 159,430 $ 1,211,297
------------ ------------ ------------ ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investment and foreign currency
transactions (identified cost basis)............ $ - $ - $ 2,790,260 $ -
Net realized gain on investment and foreign currency
transactions from Portfolio (identified cost basis) 15,538,125 154,875 - 20,726,523
------------ ------------ ------------ ------------
Net realized gain on investments................. $ 15,538,125 $ 154,875 $ 2,790,260 $ 20,726,523
------------ ------------ ------------ ------------
Change in unrealized appreciation (depreciation
of investments and translation of assets and
liabilities in foreign currencies............. $ - $ - $ 5,697,987 $ -
Change in unrealized appreciation (depreciation)
of investments and translation of assets and
liabilities in foreign currencies from Portfolio (20,336,710) (2,056,707) - (11,296,007)
------------ ------------ ------------ ------------
Net change in unrealized appreciation
(depreciation) of investments................... $(20,336,710) $ (2,056,707) $ 5,697,987 $ (11,296,007)
------------ ------------ ------------ ------------
Net realized and unrealized gain (loss) on
investments.................................... $ (4,798,585) $ (1,901,832) $ 8,488,247 $ 9,430,516
------------ ------------ ------------ ------------
Net increase (decrease) in net assets from
operations..................................... $ (3,631,421) $ (1,884,068) $ 8,647,677 $ 10,641,813
============= ============= ============= =============
+ The Wright Major Blue Chip Equities Fund does not invest in a corresponding
master portfolio.
</TABLE>
See notes to financial statements
<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
-------------------------------------------------------------------
1998 1997 1998 1997
- ---------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From operations -
<S> <C> <C> <C> <C>
Net investment income.................................. $ 1,167,164 $ 1,731,669 $ 17,764 $ 63,900
Net realized gain on investments....................... 15,538,125 27,879,423 154,875 2,787,813
Change in unrealized appreciation (depreciation)
of investments....................................... (20,336,710) 35,733,719 (2,056,707) 547,419
------------ ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from operations......................... $ (3,631,421) $ 65,344,811 $ (1,884,068) $ 3,399,132
------------ ------------ ------------ ------------
Undistributed net investment income included in
price of shares sold and redeemed (Note 1F)............ $ (14) $ (21,080) $ - $ -
------------ ------------ ------------ ------------
Distributions to shareholders (Note 1G) -
From net investment income............................. $ (1,166,044) $ (1,728,176) $ - $ (56,986)
From net realized gain................................. (16,414,262) (43,658,676) (157,251) (2,548,114)
In excess of net realized gain......................... (845,717) - - -
------------ ------------ ------------ ------------
Total distributions.................................. $(18,426,023) $ (45,386,852) $ (157,251) $ (2,605,100)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets from Fund
share transactions (Note 4)............................ $(16,388,843) $ 31,308,408 $ 3,068,243 $ 18,667,002
------------ ------------ ------------ ------------
Net increase (decrease) in net assets.................... $(38,446,301) $ 51,245,287 $ 1,026,924 $ 19,461,034
NET ASSETS:
At beginning of year..................................... 259,410,868 208,165,581 33,489,734 14,028,700
------------ ------------ ------------ ------------
At end of year........................................... $220,964,567 $ 259,410,868 $ 34,516,658 $ 33,489,734
============= ============= ============= =============
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF)
NET INVESTMENT INCOME INCLUDED IN NET
ASSETS AT END OF PERIOD.................................. $ 924,380 $ 927,887 $ (369,870) $ (385,258)
============= ============= ============= =============
</TABLE>
See notes to financial statements
<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
-----------------------------------------------------------
1998 1997 1998 1997
- -----------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From operations -
<S> <C> <C> <C> <C>
Net investment income.................................. $ 159,430 $ 175,793 $ 1,211,297 $ 2,163,882
Net realized gain on investments....................... 2,790,260 5,086,262 20,726,523 15,148,710
Change in unrealized appreciation (depreciation)
of investments....................................... 5,697,987 2,093,990 (11,296,007) (12,233,865)
------------ ------------ ------------ ------------
Net increase in net assets
resulting from operations......................... $ 8,647,677 $ 7,356,045 $ 10,641,813 $ 5,078,727
------------ ------------ ------------ ------------
Undistributed net investment income included in
price of shares sold and redeemed (Note 1F)............ $ - $ - $ - $ 202,446
------------ ------------ ------------ ------------
Distributions to shareholders (Note 1G) -
From net investment income - Standard shares........... $ (147,022) $ (164,977) $ (827,510) $ (2,203,743)
From net investment income - Institutional Shares...... - - (284,480) -
From net realized gain - Standard shares............... (2,286,379) (7,725,348) (10,461,145) (11,765,818)
From net realized gain - Institutional shares.......... - - (1,854,640) (1,107,228)
------------ ------------ ------------ ------------
Total distributions.................................. $ (2,433,401) $ (7,890,325) $(13,427,775) $(15,076,789)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets from fund
share transactions (Note 4) -
Standard shares...................................... $ 16,943,444 $ 2,439,911 $(18,251,870) $(50,302,381)
Institutional shares................................. - - (24,916,881) 49,157,706
------------ ------------ ------------ ------------
Net increase (decrease) in net assets from Fund share
transactions........................................... $ 16,943,444 $ 2,439,911 $(43,168,751) $ (1,144,675)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets.................... $ 23,157,720 $ 1,905,631 $(45,954,713) $(10,940,291)
NET ASSETS:
At beginning of year..................................... 27,720,746 25,815,115 257,792,048 268,732,339
------------ ------------ ------------ ------------
At end of year........................................... $ 50,878,466 $ 27,720,746 $211,837,335 $257,792,048
============= ============= ============= =============
DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME
INCLUDED IN NET ASSETS AT END OF PERIOD.................. $ (212,485) $ (195,049) $ (702,820) $ (2,065,144)
============= ============= ============= =============
+ The Wright Major Blue Chip Equities Fund does not invest in a corresponding
master portfolio.
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT MANAGED EQUITY TRUST
WRIGHT SELECTED BLUE CHIP EQUITIES FUND
================================================================================
<TABLE>
<CAPTION>
Year Ended December 31,
------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1998 1997 1996 1995 1994
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......... $ 19.200 $ 17.730 $ 16.830 $ 13.850 $ 14.920
-------- -------- -------- -------- --------
Income (loss) from Investment Operations:
Net investment income.................. $ 0.095 $ 0.133 $ 0.204 $ 0.226 $ 0.233
Net realized and unrealized gain (loss)
on investments....................... (0.139) 5.172 2.886 3.904 (0.763)
-------- -------- -------- -------- --------
Total income (loss)
from investment operations....... $ (0.044) $ 5.305 $ 3.090 $ 4.130 $ (0.530)
-------- -------- -------- -------- --------
Less Distributions:
From net investment income............. $ (0.090) $ (0.145) $ (0.200) $ (0.200) $ (0.180)
From net realized gain on investments.. (1.366) (3.690) (1.990) (0.840) (0.360)
In excess of net realized gain
on investments....................... (0.070) - - (0.110) -
-------- -------- -------- -------- --------
Total distributions................ $ (1.526) $ (3.835) $ (2.190) $ (1.150) $ (0.540)
-------- -------- -------- -------- --------
Net asset value, end of year................ $ 17.630 $ 19.200 $ 17.730 $ 16.830 $ 13.850
========= ========= ========= ========= =========
Total Return (1)............................ 0.14% 32.70% 18.57% 30.34% (3.52%)
Ratios/Supplemental Data:
Net assets, end of year (000 omitted).. $ 220,965 $ 259,411 $ 208,166 $217,588 $186,016
Ratio of expenses to average net assets 1.11%(3) 1.08%(3) 1.04% 1.04% 1.03%
Ratio of net investment income to average
net assets........................... 0.46% 0.75% 1.15% 1.44% 1.57%
Portfolio turnover rate(2) ............ - 10% 43% 44% 72%
<FN>
(1) Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each period reported. Dividends and distributions, if any, are assumed to be
invested at the net asset value on the reinvestment date.
(2) 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.
(3) Includes each Fund's share of its corresponding Portfolio's allocated
expenses.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT MANAGED EQUITY TRUST
WRIGHT JUNIOR BLUE CHIP EQUITIES FUND
================================================================================
<TABLE>
<CAPTION>
Year Ended December 31,
------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1998 1997 1996 1995 1994
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......... $ 10.480 $ 8.860 $ 10.850 $ 11.000 $ 11.950
-------- -------- -------- -------- --------
Income (loss) from Investment Operations:
Net investment income (loss) (1)....... $ 0.015 $ 0.160 $ 0.067 $ 0.120 $ 0.101
Net realized and unrealized gain (loss)
on investments....................... (0.530) 2.380 1.738 1.977 (0.431)
-------- -------- -------- -------- --------
Total income (loss)
from investment operations....... $ (0.515) $ 2.540 $ 1.805 $ 2.097 $ (0.330)
-------- -------- -------- -------- --------
Less Distributions:
From net investment income............. $ - $ (0.035) $ (0.100) $ (0.100) $ (0.100)
From net realized gain on investments.. (0.045) (0.885) (3.695) (1.030) (0.520)
In excess of net realized gain
on investments....................... - - - (1.117) -
-------- -------- -------- -------- --------
Total distributions................ $ (0.045) $ (0.920) $ (3.795) $ (2.247) $ (0.620)
-------- -------- -------- -------- --------
Net asset value, end of year................ $ 9.920 $ 10.480 $ 8.860 $ 10.850 $ 11.000
========= ========= ========= ========= =========
Total Return(3)............................. (4.90%) 28.92% 17.53% 20.51% (2.75%)
Ratios/Supplemental Data:
Net assets, end of year (000 omitted).. $ 34,517 $ 33,490 $ 14,029 $ 25,993 $ 37,124
Ratio of expenses to average net assets(1) 1.17%(2)(5) 1.18%(2)(5) 1.20%(2) 1.17%(2) 1.11%
Ratio of net investment income to
average net assets(1) ............... 0.05% 0.35% 0.73% 0.89% 0.91%
Portfolio turnover rate(4) ............ - 25% 41% 40% 36%
<FN>
(1)For the years ended December 31, 1998, 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:
1998 1997 1996 1995
- -----------------------------------------------------------------------------------------------------------------------
Net investment income (loss) per share. $ (0.066) $ (0.041) $ 0.048 $ 0.105
========= ========= ========= =========
Ratios (As a percentage of average net assets):
Expenses........................... 1.44%(5) 1.62%(5) 1.41% 1.28%
========= ========= ========= =========
Net investment income (loss)....... (0.22%) (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 is computed without
consideration of such credits, in accordance with reporting regulations in
effect beginning in 1995. If these credits were considered, the ratio of net
expenses to average daily net assets would have been reduced to 1.15%,
1.14%, 1.15% and 1.14% for the years ended December 31, 1998, 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 reinvestment date.
(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.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT MANAGED EQUITY TRUST
WRIGHT MAJOR BLUE CHIP EQUITIES FUND
================================================================================
<TABLE>
<CAPTION>
Year Ended December 31,
---------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1998 1997 1996 1995 1994
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......... $ 12.020 $ 12.450 $ 12.650 $ 11.390 $ 12.720
-------- -------- -------- -------- --------
Income (loss) from Investment Operations:
Net investment income(1)............... $ 0.091 $ 0.100 $ 0.064 $ 0.153 $ 0.180
Net realized and unrealized gain (loss)
on investments....................... 2.324 3.515 2.131 3.107 (0.295)
-------- -------- -------- -------- --------
Total income (loss)
from investment operations....... $ 2.415 $ 3.615 $ 2.195 $ 3.260 $ (0.115)
-------- -------- -------- -------- --------
Less Distributions:
From net investment income............. $ (0.055) $ (0.085) $ (0.120) $ (0.160) $ (0.160)
From net realized gain on investments.. (0.710) (3.960) (2.275) (1.840) (1.055)
-------- -------- -------- -------- --------
Total distributions................ $ (0.765) $ (4.045) $ (2.395) $ (2.000) $ (1.215)
-------- -------- -------- -------- --------
Net asset value, end of year................ $ 13.670 $ 12.020 $ 12.450 $ 12.650 $ 11.390
========= ========= ========= ========= =========
Total Return(3)............................. 20.43% 33.86% 17.63% 28.98% (0.70%)
Ratios/Supplemental Data:
Net assets, end of year (000 omitted).. $ 50,878 $ 27,721 $ 25,815 $ 49,134 $ 51,085
Ratio of expenses to average net assets(1) 1.07%(2 1.08%(2) 1.08%(2) 1.07%(2) 0.99%
Ratio of net investment income to average
net assets(1)...................... 0.49% 0.68% 0.90% 1.19% 1.46%
Portfolio turnover rate................ 36% 89% 45% 83% 55%
<FN>
(1)For the years ended December 31, 1998, 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:
1998 1997 1996 1995
---------- --------- --------- --------
Net investment income per share........ $ 0.052 $ 0.049 $ 0.061 $ 0.150
========= ========= ========= =========
Ratios (As a percentage of average net assets):
Expenses........................... 1.28% 1.43% 1.12% 1.09%
========= ========= ========= =========
Net investment income.............. 0.28% 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 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, 1998, 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 reinvestment date.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT MANAGED EQUITY TRUST
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND
================================================================================
<TABLE>
<CAPTION>
Year Ended December 31,
-----------------------------
FINANCIAL HIGHLIGHTS 1998 1998
- ------------------------------------------------------------------------------------------------------
Institutional Standard
Shares Shares
<S> <C> <C>
Net asset value, beginning of year.......... $ 9.130 $ 16.020
-------- --------
Income from Investment Operations:
Net investment income ................. $ 0.159 $ 0.078
Net realized and unrealized gain
on investments..................... 0.487 0.868
-------- --------
Total income
from investment operations..... $ 0.646 $ 0.946
-------- --------
Less Distributions:
From net investment income............. $ (0.150) $ (0.070)
From net realized gain................. (0.876) (0.876)
-------- --------
Total distribution................. $ (1.026) $ (0.946)
-------- --------
Net asset value, end of year................ $ 8.750 $ 16.020
========= =========
Total Return(1)............................. 7.54% 6.14%
Ratios/Supplemental Data:
Net assets, end of year (000 omitted).. $ 18,511 $ 193,327
Ratio of expenses to average daily net
assets............................. 1.12%(2) 1.35%(2)
Ratio of net investment income to average
daily net assets................... 0.73% 0.42%
<FN>
(1) Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each period reported. Dividends and distributions, if any, are assumed to be
invested at the net asset value on the reinvestment date.
(2) Includes each Fund's share of its corresponding Portfolio's allocated
expenses.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT MANAGED EQUITY TRUST
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND - continued
================================================================================
<TABLE>
<CAPTION>
Year Ended December 31,
---------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1997* 1997 1996 1995 1994
- ---------------------------------------------------------------------------------------------------------------------------
Institutional
Shares Standard Shares
------------- -----------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......... $ 10.000 $16.690 $14.770 $13.090 $13.410
--------- --------- --------- --------- ---------
Income (loss) from Investment Operations:
Net investment income ................. $ 0.006 $ 0.185 $ 0.128 $ 0.142 $ 0.127
Net realized and unrealized gain (loss)
on investments..................... (0.646)+ 0.048+ 2.902 1.638 (0.347)
--------- --------- --------- --------- ---------
Total income (loss)
from investment operations.... $ (0.640) $ 0.233 $ 3.030 $ 1.780 $ (0.220)
--------- --------- --------- --------- ---------
Less Distributions:
From net investment income............. $ - $ (0.163) $ (0.100) $ (0.100) $ (0.100)
From net realized gains................ (0.230) (0.740) (1.010) - -
--------- --------- --------- --------- ---------
Total distributions................ $ (0.230) $ (0.903) $ (1.110) $ (0.100) $ (0.100)
--------- --------- --------- --------- ---------
Net asset value, end of year................ $ 9.130 $16.020 $ 16.690 $ 14.770 $ 13.090
========== ========== ========== ========== ==========
Total Return(1)............................. (6.37%) 1.54% 20.73% 13.61% (1.64%)
Ratios/Supplemental Data
Net assets, end of year (000 omitted).. $ 45,094 $212,698 $268,732 $237,176 $200,232
Ratio of expenses to average daily net
assets............................. 1.16%(3)++ 1.31%(3) 1.30% 1.29% 1.31%
Ratio of net investment income to average
daily net assets................... 0.15%++ 0.82% 0.82% 0.99% 1.00%
Portfolio turnover rate(2) ............ 4% 4% 29% 12% 12%
<FN>
(1)Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each period reported. Dividends and distributions, if any, are assumed to be
invested at the net asset value on the reinvestment date.
(2) 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.
(3) Includes each Fund's share of its corresponding Portfolio's allocated
expenses.
+ 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.
++ Annualized.
* For the period from July 7, 1997 (inception of offering Institutional
shares) to December 31, 1997.
</FN>
</TABLE>
See notes to financial statements
<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, 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. 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, 1998 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 - For WMBC securities listed on securities
exchanges or in the NASDAQ National Market are valued at closing sale prices, if
those prices are deemed to be representative of market values at the close of
business. 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 market value. Securities for which market quotations
are unavailable or deemed not to be representative of market values at the close
of business 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 1A 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 - For WMBC, 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 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.
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.
<PAGE>
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 31,1998, 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 $(473,819) $ 478,432 $ (4,613)
WJBC 248,944 (246,568) (2,376)
WMBC 968,959 (939,115) (29,844)
WIBC 5,878,062 (7,141,079) 1,263,017
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, 1998, 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
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 31,1998, for WMBC the effective annual rate was
0.45%. 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. 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, 1998, the effective annual rate was
0.02% for WBC, 0.04% for WJBC, 0.22% for WMBC, and 0.02% for WIBC. Certain of
the Trustees
<PAGE>
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. To enhance the net income of WJBC
and WMBC, the Principal Underwriter made a reduction of its fee by $86,523 and
$68,917, respectively. In addition, the Trustees have 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 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 year ended December 31, 1998 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, 1998 December 31, 1997
---------------------------------------------------
Shares Amount Shares Amount
- --------------------------------------------------------------------------------------------------------------------------
Wright Selected Blue Chip Equities Fund --
<S> <C> <C> <C> <C>
Sold .............................................. 2,109,096 $ 40,389,405 2,295,567 $ 43,143,360
Issued to shareholders in payment of
distributions declared............................... 877,643 14,839,357 2,057,801 36,966,100
Reacquired............................................. (3,967,641) (71,617,605) (2,586,053) (48,801,052)
---------- ------------- ---------- -------------
Net increase (decrease).............................. (980,902) $ (16,388,843) 1,767,315 $ 31,308,408
=========== =============== =========== ===============
Wright Junior Blue Chip Equities Fund --
Sold................................................... 1,024,797 $ 10,421,975 2,059,302 $ 22,967,370
Issued to shareholders in payment of
distributions declared............................... 12,811 122,269 202,275 2,080,022
Reacquired............................................. (753,849) (7,476,001) (649,566) (6,380,390)
---------- ------------- ---------- -------------
Net increase......................................... 283,759 $ 3,068,243 1,612,011 $ 18,667,002
=========== =============== =========== ===============
Wright Major Blue Chip Equities Fund --
Sold.................................................. 2,262,400 $ 27,942,197 432,179 $ 5,533,181
Issued to shareholders in payment of
distributions declared................................ 171,868 2,268,398 648,550 7,400,696
Reacquired............................................. (1,017,149) (13,267,151) (847,964) (10,493,966)
---------- ------------- ---------- -------------
Net increase......................................... 1,417,119 $ 16,943,444 232,765 $ 2,439,911
=========== =============== =========== ===============
Wright International Blue Chip Equities Fund -- Standard Shares:
Sold................................................... 6,595,651 $ 110,930,477 6,878,669 $ 113,256,683
Issued to shareholders in payment of
distributions declared............................... 566,574 8,776,474 726,800 11,458,067
Reacquired............................................. (8,370,704) (137,958,821) (10,434,522) (175,017,131)
---------- ------------- ---------- -------------
Net decrease......................................... (1,208,479) $ (18,251,870) (2,829,053) $ (50,302,381)
=========== =============== =========== ===============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Year Ended Year Ended
December 31, 1998 December 31, 1997
-------------------------------------------------------
Shares Amount Shares Amount
- ----------------------------------------------------------------------------------------------------------------------------------
Period from July 7, 1997, the Inception
of Offering Institutional Shares,
to December 31, 1997
Wright International Blue Chip Equities Fund -- Institutional Shares: ----------------------------------------
<S> <C> <C> <C> <C>
Sold................................................... - $ - 4,814,034 $ 48,051,228
Issued to shareholders in payment of distributions
declared............................................. 249,025 2,139,120 122,616 1,107,228
Reacquired............................................. (3,070,822) (27,056,001) (82) (750)
---------- ------------- ---------- -------------
Net increase (decrease)................................ (2,821,797) $ (24,916,881) 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 were as follows:
Year Ended December 31,1998
Wright Major Blue Chip
Equities Fund
- -----------------------------------------------------------------------------
Purchases....................... $ 33,490,829
=============
Sales........................... $ 19,212,473
=============
- -----------------------------------------------------------------------------
Increases and decreases in each Fund's investment in its corresponding
Portfolio for the year ended December 31, 1998 were as follows:
WBC WJBC WIBC
- -------------------------------------------------------------------------------
Increases..... $ 40,294,485 $10,001,530 $110,766,485
Decreases..... (75,343,029) (7,395,707) (166,998,630)
- -------------------------------------------------------------------------------
(6) FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES
The cost and unrealized appreciation (depreciation) of the investment
securities owned at December 31, 1998, as computed on a federal income tax
basis, are as follows:
Wright Major Blue Chip
Equities Fund
- ------------------------------------------------------------------------------
Aggregate cost.......................... $ 40,089,927
=============
Gross unrealized appreciation........... $ 12,094,880
Gross unrealized depreciation........... (175,985)
-------------
Net unrealized appreciation............. $ 11,918,895
=============
(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 year ended December 31, 1998.
(8) SUBSEQUENT EVENT
Effective January 1, 1999, Austria, Belgium, Finland, France, Germany,
Ireland, Italy, Luxembourg, Netherlands, Portugal, and Spain have adopted the
Euro as its common currency. Existing national currencies of these countries
will be sub-currencies of the Euro until July 1, 2002, when the old currencies
disappear entirely. The conversion to Euro impacts only the Wright International
Blue Chip Equities Fund and there is no financial statement implication as of
December 31, 1998.
<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, 1998, the related statements of operations for
the year then ended, the statements of changes in net assets for the years ended
December 31, 1998 and 1997, and the financial highlights for each of the years
in the five-year period ended December 31, 1998. 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, 1998, by correspondence with the custodian and brokers; where
replieswere not received from brokers, we performed other auditing procedures.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of each of the
aforementioned Funds of The Wright Managed Equity Trust as of December 31, 1998,
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 29, 1999
<PAGE>
WRIGHT MANAGED INCOME TRUST
STATEMENTS OF ASSETS AND LIABILITIES
December 31, 1998
================================================================================
<TABLE>
<CAPTION>
Wright Wright Wright
U.S. Treasury U.S. Government U.S. Treasury
Money Market Fund+ Near Term Fund Fund
(WTMM) (WNTB) (WUSTB)
- ---------------------------------------------------------------------------------------------------------------------------------
ASSETS:
Investments -
<S> <C> <C> <C>
Amortized cost.................................. $ 91,246,306 $ - $ -
Investments in Portfolio, at value (identified cost
of $90,640,832 and $62,258,422 for
WNTB and WUSTB, respectively) ................ - 92,199,965 67,329,641
------------ ------------ ------------
Total investments, at value (Note 1A)............. $ 91,246,306 $ 92,199,965 $ 67,329,641
Cash.............................................. 3,348 - -
Receivable for Fund shares sold................... 177,884 102,272 33,997
------------- ------------ ------------
Total Assets.................................. $ 91,427,538 $ 92,302,237 $ 67,363,638
------------- ------------ ------------
LIABILITIES:
Payable for Fund shares reacquired................ $ 23,016 $ 184,602 $ 6,994
Distributions payable............................. 54,137 184,917 91,857
Accrued management fees........................... 6,540 - -
Accrued expenses and other liabilities............ 20,853 11,174 8,429
------------- ------------ ------------
Total Liabilities............................. $ 104,546 $ 380,693 $ 107,280
------------- ------------ ------------
NET ASSETS........................................... $ 91,322,992 $ 91,921,544 $ 67,256,358
============== ============== ==============
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............................ $ 91,322,992 $105,354,342 $ 61,962,317
Accumulated net realized gain (loss) on investments
(computed on the basis of identified cost)...... - (14,989,198) 222,822
Unrealized appreciation of investments
(computed on the basis of identified cost)...... - 1,559,133 5,071,219
Distributions in excess of net investment income.. - (2,733) -
------------- ------------ ------------
Net assets applicable to outstanding shares..... $ 91,322,992 $ 91,921,544 $ 67,256,358
============== ============== ==============
SHARES OF BENEFICIAL INTEREST OUTSTANDING......... 91,322,992 8,946,956 4,671,354
============== ============== ==============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST.......................... $1.00 $10.27 $14.40
============== ============== ==============
+ 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, 1998
is the same as the market value.
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT MANAGED INCOME TRUST
STATEMENTS OF ASSETS AND LIABILITIES
December 31, 1998
================================================================================
<TABLE>
<CAPTION>
Wright Wright
Total Return Current Income
Bond Fund+ Fund
(WTRB) (WCIF)
- --------------------------------------------------------------------------------------------------------------------------
ASSETS:
Investments -
<S> <C> <C>
Identified cost................................. $109,135,836 $ -
Unrealized appreciation......................... 5,398,425 -
Investment in Portfolio, at value (identified cost
of $111,564,176 for WCIF)..................... - 113,706,741
------------ ------------
Total investments at value (Note 1A).............. $114,534,261 $113,706,741
Cash.............................................. 4,178 -
Receivable for Fund shares sold................... 156,414 62,315
Interest receivable............................... 1,556,539 -
------------ ------------
Total Assets.................................. $116,251,392 $113,769,056
------------ ------------
LIABILITIES:
Payable for Fund shares reacquired................ $ 186,702 $ 105,679
Distributions payable............................. 114,391 161,875
Accrued expenses and other liabilities............ 12,949 8,749
------------ ------------
Total Liabilities............................. $ 314,042 $ 276,303
------------ ------------
NET ASSETS........................................... $115,937,350 $113,492,753
============= =============
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 $110,549,840 $112,634,632
Accumulated undistributed net realized gain (loss) on investments
(computed on the basis of identified cost) (581) (1,053,609)
Unrealized appreciation of investments
(computed on the basis of identified cost)...... 5,398,425 2,142,565
Distributions in excess of net
investment income............................... (10,334) (230,835)
------------ ------------
Net assets applicable to outstanding shares..... $115,937,350 $113,492,753
============= =============
Computation of net asset value, offering and redemption price per share:
Standard Shares:
Net assets...................................... $115,937,350 $ 90,261,516
============= =============
Shares of beneficial interest outstanding....... 8,707,706 8,466,035
============= =============
Net asset value, offering price, and redemption price
per share of beneficial interest.............. $13.31 $10.66
============= =============
Institutional Shares:
Net assets...................................... $ 23,231,237
=============
Shares of beneficial interest outstanding....... 2,289,544
=============
Net asset value, offering price, and redemption price
per share of beneficial interest.............. $10.15
=============
+ The Wright Total Return Bond Fund does not invest in a corresponding master
portfolio.
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT MANAGED INCOME TRUST
STATEMENTS OF OPERATIONS
For the Year Ended December 31, 1998
================================================================================
<TABLE>
<CAPTION>
Wright Wright Wright
U.S. Treasury U.S. Government U.S. Treasury
Money Market Fund+ Near Term Fund Fund
(WTMM) (WNTB) (WUSTB)
- -----------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1B):
Income -
<S> <C> <C> <C>
Interest income................................... $ 4,769,733 $ - $ -
Interest income allocated from Portfolio.......... - 6,293,373 4,312,872
Expenses allocated from Portfolio................. - (568,580) (385,901)
------------ ------------ ------------
Investment income................................ $ 4,769,733 $ 5,724,793 $ 3,926,971
------------ ------------ ------------
Expenses -
Investment Adviser fee (Note 3)................... $ 329,520 $ - $ -
Administrator fee (Note 3)........................ 65,724 26,620 19,333
Compensation of Trustees not affiliated with the
Investment Adviser or Administrator.............. 3,935 3,437 3,437
Custodian fee (Note 1C)........................... 45,290 13,875 5,500
Distribution expenses (Note 4).................... - 251,751 180,464
Transfer and dividend disbursing agent fees....... 57,471 43,036 21,441
Printing.......................................... 2,868 731 2,502
Audit services.................................... 30,040 12,660 12,660
Legal services.................................... 7,621 2,940 2,940
Registration costs................................ 15,835 20,952 17,270
Miscellaneous..................................... 18,682 377 10,002
------------ ------------ ------------
Total expenses................................... $ 576,986 $ 376,379 $ 275,549
------------ ------------ ------------
Deduct -
Reduction of Investment Adviser fee (Note 3)...... $ 154,396 $ - $ -
Reduction of distribution expenses by
Principal Underwriter (Note 4)................... - 32,942 11,245
------------ ------------ ------------
Total deductions................................ $ 154,396 $ 32,942 $ 11,245
------------ ------------ ------------
Net expenses.................................... $ 422,590 $ 343,437 $ 264,304
------------ ------------ ------------
Net investment income.......................... $ 4,347,143 $ 5,381,356 $ 3,662,667
------------ ------------ ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investment transactions from
Portfolio (identified cost basis)................. $ - $ (45,687) $ 984,728
Net change in unrealized appreciation
of investments.................................... - 580,238 2,386,702
------------ ------------ ------------
Net realized and unrealized gain (loss)
on investments.................................. $ - $ 534,551 $ 3,371,430
------------ ------------ ------------
Net increase in net assets from operations....... $ 4,347,143 $ 5,915,907 $ 7,034,097
============= ============= =============
+ The Wright U.S. Treasury Money Market Fund does not invest in a corresponding
master portfolio.
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT MANAGED INCOME TRUST
STATEMENTS OF OPERATIONS
For the Year Ended December 31, 1998
================================================================================
<TABLE>
<CAPTION>
Wright Wright
Total Return Current Income
Bond Fund+ Fund
(WTRB) (WCIF)
- ----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1B):
Income -
<S> <C> <C>
Interest income................................... $ 5,730,454 $ -
Interest income allocated from Portfolio.......... - 7,361,461
Expenses allocated from Portfolio................. - (603,848)
------------ ------------
Investment income................................ $ 5,730,454 $ 6,757,613
------------ ------------
Expenses -
Investment Adviser fee (Note 3)................... $ 377,910 $ -
Administrator fee (Note 3)........................ 92,690 27,077
Compensation of Trustees not affiliated with the
Investment Adviser or Administrator.............. 3,135 3,773
Custodian fee - Standard shares (Note 1C)......... 25,442 11,365
Custodian fee - Institutional shares (Note 1C).... - 9,151
Distribution expenses - Standard shares (Note 4).. 234,993 209,645
Transfer and dividend disbursing agent fees
- Standard shares................................ 53,830 27,460
Transfer and dividend disbursing agent fees
- Institutional shares........................... - 6,732
Printing.......................................... 2,045 1,024
Audit services.................................... 32,900 16,100
Legal services.................................... 2,452 1,914
Registration costs - Standard shares.............. 10,495 13,752
Registration costs - Institutional shares......... - 8,008
Miscellaneous..................................... 9,187 3,391
------------ ------------
Total expenses................................... $ 845,079 $ 339,392
Deduct -
Reduction of distribution expenses by
Principal Underwriter - Standard shares (Note 4). $ - $ 18,135
------------ ------------
Net expenses.................................... $ 845,079 321,257
------------ ------------
Net investment income.......................... $ 4,885,375 $ 6,436,356
------------ ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investment transactions
(identified cost basis)........................... $ 839,997 $ -
Net realized loss on investment transactions
from Portfolio (identified cost basis)............ - (142,545)
------------ ------------
Net realized gain (loss) on investments........... $ 839,997 $ (142,545)
------------ ------------
Change in unrealized appreciation of investments... $ 2,803,169 $ -
Change in unrealized appreciation of investments from
Portfolio......................................... - 406,744
------------ ------------
Net change in unrealized appreciation of investments $ 2,803,169 $ 406,744
------------ ------------
Net realized and unrealized gain on investments... $ 3,643,166 $ 264,199
------------ ------------
Net increase in net assets from operations....... $ 8,528,541 $ 6,700,555
============= =============
+ The Wright Total Return Bond Fund does not invest in a corresponding master
portfolio.
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT MANAGED INCOME TRUST
STATEMENTS OF CHANGES IN NET ASSETS
================================================================================
<TABLE>
<CAPTION>
Wright Wright Wright
U.S. Treasury U.S. Government 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
--------------------------------------------------------------------------------------
1998 1997 1998 1997 1998 1997
- --------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From operations -
<S> <C> <C> <C> <C> <C> <C>
Net investment income........$ 4,347,143 $ 4,485,565 $ 5,381,356 $ 6,722,207 $ 3,662,667 $ 3,378,249
Net realized gain (loss) on
investment transactions..... - - (45,687) (189,969) 984,728 (10,016)
Change in unrealized appreciation
(depreciation) of investments - - 580,238 (21,256) 2,386,702 2,443,170
------------ ------------ ------------ ------------ ------------ ------------
Net increase in
net assets resulting from
operations.................$ 4,347,143 $ 4,485,565 $ 5,915,907 $ 6,510,982 $ 7,034,097 $ 5,811,403
------------ ------------ ------------ ------------ ------------ ------------
Distributions to shareholders (Note 2) -
From net investment income...$ (4,347,143) $ (4,485,565) $ (5,565,401) $ (6,658,751) $ (3,755,230) $ (3,277,052)
From net realized gain....... - - - - (751,891) (438,333)
In excess of realized gains.. - - - - - (22,651)
------------ ------------ ------------ ------------ ------------ ------------
Total distributions.........$ (4,347,143) $ (4,485,565) $ (5,565,401) $ (6,658,751) $ (4,507,121) $ (3,738,036)
------------ ------------ ------------ ------------ ------------ ------------
Fund share transactions (Note 5)+ -
Proceeds from shares sold....$269,270,734 $227,054,512 $ 16,447,345 $ 19,532,312 $ 18,684,432 $ 26,166,981
Reinvestment of dividends.... 2,616,748 2,684,765 3,163,303 3,583,844 3,313,736 1,808,793
Cost of shares reacquired....(267,623,266) (237,864,010) (30,604,406) (50,728,625) (31,426,843) (10,869,033)
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in net
assets from Fund share
transactions.................$ 4,264,216 $ (8,124,733) $(10,993,758) $ (27,612,469) $ (9,428,675) $ 17,106,741
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease)
in net assets.............$ 4,264,216 $ (8,124,733) $(10,643,252) $ (27,760,238) $ (6,901,699) $ 19,180,108
NET ASSETS:
At beginning of year.......... 87,058,776 95,183,509 102,564,796 130,325,034 74,158,057 54,977,949
------------ ------------ ------------ ------------ ------------ ------------
At end of year................$ 91,322,992 $ 87,058,776 $ 91,921,544 $ 102,564,796 $ 67,256,358 $ 74,158,057
============= ============= ============= ============= ============= =============
UNDISTRIBUTED(DISTRIBUTIONS IN
EXCESS OF) NET INVESTMENT INCOME
INCLUDED IN NET ASSETS
AT END OF YEAR.................$ - $ - $ (2,733) $ 228,999 $ - $ 105,524
============= ============= ============= ============= ============= =============
+ For WTMM, the Fund share transactions are at a net asset value of $1.00 per share.
</TABLE>
See notes to financial statements
<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
------------------------------------------------------------
1998 1997 1998 1997
- -------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From operations -
<S> <C> <C> <C> <C>
Net investment income........ $ 4,885,375 $ 4,482,734 $ 6,436,356 $ 5,415,858
Net realized gain (loss) on
investment transactions..... 839,997 208,959 (142,545) (98,264)
Change in unrealized appreciation
of investments.............. 2,803,169 2,451,993 406,744 2,131,195
------------ ------------ ------------ ------------
Net increase in
net assets resulting from
operations................. $ 8,528,541 $ 7,143,686 $ 6,700,555 $ 7,448,789
------------ ------------ ------------ ------------
Distributions to shareholders (Note 2) -
From net investment income -
Standard shares............. $ (4,935,698) $ (4,473,380) $ (5,063,570) $ (4,764,576)
Institutional shares........ - - (1,363,651) (615,830)
In excess of net investment income -
Standard shares............. - - (4,167) -
From net realized gain -
Standard shares............. (1,048,957) - - -
In excess of realized gains -
Standard shares............. (6,717) - - -
------------ ------------ ------------ ------------
Total distributions......... $ (5,991,372) $ (4,473,380) $ (6,431,388) $ (5,380,406)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets
from Fund share transactions (Note 5) -
Standard shares............. $ 33,396,518 $ (14,048,274) $ 13,841,664 $ 9,750,500
Institutional shares........ - - 1,363,651 21,576,017
------------ ------------ ------------ ------------
Net increase (decrease) in net assets
from Fund share transactions $ 33,396,518 $ (14,048,274) $ 15,205,315 $ 31,326,517
------------ ------------ ------------ ------------
Net increase (decrease)
in net assets............. $ 35,933,687 $ (11,377,968) $ 15,474,482 $ 33,394,900
NET ASSETS:
At beginning of year.......... 80,003,663 91,381,631 98,018,271 64,623,371
------------ ------------ ------------ ------------
At end of year................ $115,937,350 $ 80,003,663 $113,492,753 $ 98,018,271
============= ============= ============= =============
UNDISTRIBUTED (DISTRIBUTIONS
IN EXCESS OF) NET INVESTMENT
INCOME INCLUDED IN NET
ASSETS AT END OF YEAR........ $ (10,334) $ 84,842 $ (230,835) $ (100,084)
============= ============= ============= =============
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT MANAGED INCOME TRUST
WRIGHT U.S. TREASURY MONEY MARKET FUND
================================================================================
<TABLE>
<CAPTION>
Year Ended December 31,
-----------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1998 1997 1996 1995 1994
- -----------------------------------------------------------------------------------------------------------------------------
<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) .................. 0.0460 0.04739 0.04745 0.05212 0.03494
Less Distributions:
From net investment income.................. (0.0460) (0.04739) (0.04745) (0.05212) (0.03494)
-------- --------- -------- ---------- ----------
Net asset value, end of year................... $1.00 $1.00 $1.00 $1.00 $1.00
========= ========= ========= ========= =========
Total Return(2)................................ 4.73% 4.84% 4.85% 5.34% 3.55%
Ratios/Supplemental Data:
Net assets, end of year (000 omitted)....... $91,323 $87,059 $95,184 $45,889 $68,877
Ratio of net expenses to average daily
net assets(1)............................. 0.45% 0.45% 0.45%(3) 0.46%(3) 0.45%
Ratio of net investment income to average daily
net assets(1)............................. 4.61% 4.74% 4.73% 5.22% 3.77%
<FN>
(1)During each of the above periods, the Investment Adviser reduced its fee and
in certain periods was allocated a portion of the operating expenses. Had
such actions not been undertaken, net investment income per share and the
ratios would have been as follows:
Year Ended December 31,
---------------------------------------------------------------------
1998 1997 1996 1995 1994
- --------------------------------------------------------------------------------------------------------------------------------
Net investment income per share................ $ 0.04440 $0.04599 $0.04524 $0.05120 $0.03253
========= ========= ========= ========= =========
Ratios (As a percentage of average daily net assets):
Expenses.................................... 0.61% 0.59% 0.67% 0.65% 0.71%
========= ========= ========= ========= =========
Net investment income ...................... 4.45% 4.60% 4.51% 5.03% 3.51%
========= ========= ========= ========= =========
(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 reinvestment date.
(3)Custodian fees were reduced by credits resulting from cash balances the Fund
maintained with the custodian (Note 1C). The computation of net expenses to
average daily net assets reported above is computed without consideration of
such credits, in accordance with reporting regulations in effect beginning in
1995. If these credits were considered, the ratio of net expenses to average
daily net assets would have been reduced to 0.44% and 0.45% for the years
ended December 31, 1996 and 1995, respectively.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT MANAGED INCOME TRUST
WRIGHT U.S. GOVERNMENT NEAR TERM FUND
================================================================================
<TABLE>
<CAPTION>
Year Ended December 31,
----------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1998 1997 1996 1995 1994
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......... $ 10.240 $ 10.240 $ 10.450 $ 9.920 $ 10.840
-------- -------- -------- -------- --------
Income (loss) from Investment Operations:
Net investment income(1) ................ $ 0.549 $ 0.599 $ 0.606 $ 0.631 $ 0.588
Net realized and unrealized gain (loss)
on investments......................... 0.048+ (0.010) (0.212) 0.524 (0.920)
-------- -------- -------- -------- --------
Total income (loss) from investment
operations........................... $ 0.597 $ 0.589 $ 0.394 $ 1.155 $ (0.332)
-------- -------- -------- -------- --------
Less distributions from net investment income $ (0.567) $ (0.589) $ (0.604) $ (0.625) $ (0.588)
-------- -------- -------- -------- --------
Net asset value, end of year................ $ 10.270 $ 10.240 $ 10.240 $ 10.450 $ 9.920
========= ========= ========= ========= ========
Total Return(2)............................. 5.98% 5.93% 3.91% 11.93% (3.10%)
Ratios/Supplemental Data:
Net assets, end of year (000 omitted).... $ 91,922 $102,565 $ 130,325 $ 143,600 $212,122
Ratio of expenses to average net assets.. 0.88%(4) 0.87%(4) 0.80% 0.80% 0.70%
Ratio of expenses after custodian fee
reduction to average net assets(5) .... 0.87%(4) - - - -
Ratio of net investment income to average
net assets............................. 5.38% 5.82% 5.90% 6.20% 5.70%
Portfolio Turnover Rate(3) .............. - 4% 28% 21% 33%
<FN>
(1)During the years ended December 31, 1998 and 1997, the operating expenses of
the fund were reduced by an allocation of expenses to the Investment Adviser
or a reduction in distribution fees, or a combination, thereof. Had such
action not been undertaken, net investment income per share and the ratios
would have been as follows:
1998 1997
-----------------------------
Net investment income per share........ $ 0.546 $ 0.597
========= =========
Ratios (As a percentage of average net assets):
Expenses........................... 0.91%(4) 0.89%(4)
========= =========
Expenses after custodian fee reduction 0.90%(4) -
========= =========
Net investment income.............. 5.35% 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 reinvestment 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) 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.
+ 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 of realized and unrealized gains and losses at such
times.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT MANAGED INCOME TRUST
WRIGHT U.S. TREASURY FUND
================================================================================
<TABLE>
<CAPTION>
Year Ended December 31,
-----------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1998 1997 1996(3) 1995 1994
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......... $ 13.950 $ 13.580 $ 14.710 $ 12.250 $ 14.360
-------- -------- -------- -------- --------
Income (loss) from Investment Operations:
Net investment income(1)................. $ 0.724 $ 0.721 $ 0.769 $ 0.880 $ 0.880
Net realized and unrealized gain (loss)
on investments......................... 0.632 0.462 (0.973) 2.458 (2.110)
-------- -------- -------- -------- --------
Total income (loss)
from investment operations........... $ 1.356 $ 1.183 $ (0.204) $ 3.338 $ (1.230)
-------- -------- -------- -------- --------
Less Distributions:
From net investment income............... $ (0.741) $ (0.703) $ (0.756) $ (0.878) $ (0.880)
From net realized gain................... (0.165) (0.110) (0.170) - -
-------- -------- -------- -------- --------
Total distributions.................... $ (0.906) $ (0.813) $ (0.926) $ (0.878) $ (0.880)
-------- -------- -------- -------- --------
Net asset value, end of year................ $ 14.400 $ 13.950 $ 13.580 $ 14.710 $ 12.250
========= ========= ========= ========= =========
Total Return(2)............................. 9.95% 9.09% (1.23%) 28.18% (8.66%)
Ratios/Supplemental Data:
Net assets, end of year (000 omitted).... $ 67,256 $ 74,158 $ 54,978 $ 15,156 $ 16,658
Ratio of net expenses to average net assets 0.94%(5) 1.01%(5) 0.90% 0.90% 0.90%
Ratio of net expenses after custodian fee
reduction to average net assets(6)..... 0.90%(5) 0.87%(5) - - -
Ratio of net investment income to average
net assets............................. 5.09% 5.34% 5.50% 6.60% 6.90%
Portfolio Turnover Rate(4) .............. - 1% 65% 8% 1%
<FN>
(1)During each of the five years ended December 31, 1998, 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,
------------------------------------------------------------------
1998 1997 1996 1995 1994
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income per share............. $ 0.721 $ 0.720 $ 0.769 $ 0.827 $ 0.854
========= ========= ========= ========= =========
Ratios (As a percentage of average net assets):
Expenses .............................. 0.96%(5) 1.02%(5) 0.90% 1.20% 1.10%
========= ========= ========= ========= =========
Expenses after custodian fee reduction... 0.92%(5) 0.89%(5) - - -
========= ========= ========= ========= =========
Net investment income.................... 5.07% 5.33% 5.50% 6.20% 6.70%
========= ========= ========= ========= =========
(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 reinvestment 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.
(6) 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.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT MANAGED INCOME TRUST
WRIGHT TOTAL RETURN BOND FUND
================================================================================
<TABLE>
<CAPTION>
Year Ended December 31,
----------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1998 1997 1996(2) 1995 1994
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......... $ 12.930 $ 12.500 $ 13.120 $ 11.430 $ 13.010
-------- -------- -------- -------- --------
Income (loss) from Investment Operations:
Net investment income ................... $ 0.680 $ 0.690 $ 0.720 $ 0.758 $ 0.740
Net realized and unrealized gain (loss) on
investments............................ 0.524 0.427 (0.631) 1.685 (1.580)
-------- -------- -------- -------- --------
Total income (loss)
from investment operations........... $ 1.204 $ 1.117 $ 0.089 $ 2.443 $ (0.840)
-------- -------- -------- -------- --------
Less Distributions:
From net investment income............... $ (0.690) $ (0.687) $ (0.709) $ (0.753) $ (0.740)
From net realized gain on investments.... (0.133) - - - -
In excess of net realized gain on investments (0.001) - - - -
-------- -------- -------- -------- --------
Total distributions.................... $ (0.824) $ (0.687) $ (0.709) $ (0.753) $ (0.740)
-------- -------- -------- -------- --------
Net asset value, end of year................ $ 13.310 $ 12.930 $ 12.500 $ 13.120 $ 11.430
========= ========= ========= ========= =========
Total Return(1)............................. 9.56% 9.25% 0.87% 21.97% (6.57%)
Ratios/Supplemental Data:
Net assets, end of year (000 omitted).... $115,937 $ 80,004 $ 91,382 $ 122,762 $143,497
Ratio of net expenses to average net assets 0.90% 0.90% 0.80% 0.80% 0.80%
Ratio of net investment income to average
net assets............................. 5.18% 5.50% 5.70% 6.20% 6.10%
Portfolio Turnover Rate.................. 26% 34% 96% 50% 32%
<FN>
(1)Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each year reported. Dividends and distributions, if any, are assumed to be
reinvested at the net asset value on the reinvestment date.
(2)Certain of the per share data are based on average shares outstanding.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT MANAGED INCOME TRUST
WRIGHT CURRENT INCOME FUND
================================================================================
<TABLE>
<CAPTION>
Year Ended December 31,
-------------------------------
FINANCIAL HIGHLIGHTS 1998 1998
- -------------------------------------------------------------------------------------------------------
Institutional Standard
Shares Shares
<S> <C> <C>
Net asset value, beginning of year ......... $ 10.120 $ 10.630
-------- --------
Income (loss) from Investment Operations:
Net investment income(1) ................ $ 0.619 $ 0.646
Net realized and unrealized gain on
investments............................ 0.026 0.028
-------- --------
Total income
from investment operations......... $ 0.645 $ 0.674
-------- --------
Less Distributions:
From net investment income............... $ (0.615) $ (0.643)
In excess of net investment income....... - (0.001)
-------- --------
Total distributions.................. $ (0.615) $ (0.644)
-------- --------
Net asset value, end of year ............... $ 10.150 $ 10.660
========= =========
Total Return(2)............................. 6.56% 6.51%
Ratios/Supplemental Data:
Net assets, end of year (000 omitted).... $ 23,231 $ 90,262
Ratio of net expenses to average net assets 0.75%(3) 0.90%(3)
Ratio of net investment income to average
net assets......................... 6.11% 6.03%
<FN>
(1)For the year ended December 31, 1998, the operating expenses of the fund
were reduced by a reduction in distribution fees by the Principal Underwriter.
Had such action not been undertaken, net investment income per share and the
ratios would have been as follows:
1998
Net investment income per share.......... $ 0.644
=========
Ratios (As a percentage of average net assets):
Expenses........................... 0.92%(3)
=========
Net investment income.............. 6.01%
=========
(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 reinvestment date.
(3)Includes each Fund's share of its corresponding Portfolio's allocated
expenses.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT MANAGED INCOME TRUST
WRIGHT CURRENT INCOME FUND - continued
================================================================================
<TABLE>
<CAPTION>
Year Ended December 31,
----------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1997** 1997 1996 1995 1994
- -----------------------------------------------------------------------------------------------------------------------------
Institutional
Shares Standard Shares
-------- ---------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period........ $ 10.000 $ 10.430 $ 10.670 $ 9.710 $ 10.750
-------- -------- -------- -------- --------
Income (loss) from Investment Operations:
Net investment income(1) ................ $ 0.313 $ 0.658 $ 0.674 $ 0.696 $ 0.690
Net realized and unrealized gain (loss) on
investments............................ 0.120 0.206 (0.239) 0.955 (1.040)
-------- -------- -------- -------- --------
Total income (loss)
from investment operations......... $ 0.433 $ 0.864 $ 0.435 $ 1.651 $ (0.350)
-------- -------- -------- -------- --------
Less Distributions:
From net investment income............... $ (0.313)(6) $ (0.664) $ (0.675) $ (0.691) $ (0.690)*
-------- -------- -------- -------- --------
Total distributions.................. $ (0.313) $ (0.664) $ (0.675) $ (0.691) $ (0.690)
-------- -------- -------- -------- --------
Net asset value, end of period.............. $ 10.120 $ 10.630 $ 10.430 $ 10.670 $ 9.710
========= ========= ========= ========= =========
Total Return(2)............................. 4.40% 8.56% 4.31% 17.46% (3.30%)
Ratios/Supplemental Data:
Net assets, end of period (000 omitted).. $ 21,801 $ 76,217 $ 64,623 $ 66,345 $84,178
Ratio of net expenses to average net assets 0.48%(4)(5) 0.89%(4) 0.90% 0.90% 0.80%
Ratio of net investment income to average
net assets......................... 4.70%(5) 6.44% 6.50% 6.80% 6.90%
Portfolio Turnover Rate(3) .............. 2% 3% 9% 26% 10%
<FN>
* 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 reinvestment 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.
</FN>
</TABLE>
See notes to financial statements
<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. Government Near Term Fund
(WNTB)(formerly Wright U.S. Treasury Near Term Fund) 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. 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, 1998 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 - For WTRB investments 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 market value. WTMM's money
market instruments are valued at amortized cost, which the Trustees have
determined in good faith constitutes market 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 1A of the Portfolios' Notes to
Financial Statements which are included elsewhere in this report.
B. Interest Income - For WTMM and WTRB, 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 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, 1998, the Trust, for federal
income tax purposes, had capital loss carryovers of $24,852 (WTMM), $14,989,198
(WNTB), and $1,025,395 (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:
<PAGE>
12/31 WTMM WNTB WCIF
- -------------------------------------------------------------------------------
1999 $ -- $ 4,467,443 $ --
2000 939 2,957,673 --
2001 -- -- --
2002 3,236 6,936,070 676,782
2003 -- 376,568 215,933
2004 13,981 -- 113,252
2005 4,550 188,862 19,428
2006 2,146 62,582 --
- -------------------------------------------------------------------------------
At December 31, 1998, net capital losses of $12,374 for WTMM attributable
to security transactions incurred after October 31, 1998 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, service fees and other
class specific expenses. 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, 1998, 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, 1999 and will be based on tax accounting
methods which may differ from amounts determined for financial statement
purposes.
During the year ended December 31,1998, 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 $(3,276,797) $3,324,484 $ (47,687)
WUSTB 12,961 -- (12,961)
WTRB 38,717 6,136 (44,853)
WCIF -- 135,719 (135,719)
- -------------------------------------------------------------------------------
Net investment income, net realized gains (losses) and net assets are 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
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, 1998, for WTMM, and WTRB the effective annual
rate was 0.35% and 0.41%, respectively. The Portfolios have engaged Wright to
render investment
<PAGE>
advisory services. See Note 2 of the Portfolios' Notes to Financial
Statements which are included elsewhere in this report. To enhance the net
income of the Funds, Wright made a reduction of its investment adviser fee by
$154,396 for WTMM. In addition, $6,000 of expenses of WUSTB was allocated to the
Investment Adviser.
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,
1998, the effective annual rate was 0.07% for WTMM, 0.03% for WNTB, 0.03% for
WUSTB, 0.10% for WTRB, and 0.03% 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. To
enhance the net income of WNTB, WUSTB, and WCIF, the Principal Underwriter made
a reduction of its fee by $32,942, $11,245, and $18,135, respectively.
In addition, the Trustees have 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 year ended December 31, 1998 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, 1998 December 31, 1997
-----------------------------------------------------------------
Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------
Wright U.S. Government Near Term Fund --
<S> <C> <C> <C> <C>
Sales................................................ 1,605,556 $ 16,447,345 1,912,457 $ 19,532,312
Issued to shareholders in payment of
distributions declared............................. 314,121 3,163,303 351,009 3,583,844
Redemptions.......................................... (2,989,009) (30,604,406) (4,968,090) (50,728,625)
---------- ------------- ---------- -------------
Net decrease..................................... (1,069,332) $ (10,993,758) (2,704,624) $ (27,612,469)
=========== =============== =========== ===============
Wright U.S. TREASURY Fund --
Sales................................................ 1,302,718 $ 18,684,432 1,939,601 $ 26,166,981
Issued to shareholders in payment
of distributions declared.......................... 231,734 3,313,736 206,796 1,808,793
Redemptions.......................................... (2,179,531) (31,426,843) (877,670) (10,869,033)
---------- ------------- ---------- -------------
Net increase (decrease).......................... (645,079) $ (9,428,675) 1,268,727 $ 17,106,741
=========== =============== =========== ===============
<PAGE>
Wright Total Return Bond Fund --
Sales................................................ 3,355,655 $ 44,394,191 565,212 $ 7,150,768
Issued to shareholders in payment
of distributions declared.......................... 344,502 4,544,209 265,206 3,324,077
Redemptions.......................................... (1,178,486) (15,541,882) (1,957,795) (24,523,119)
---------- ------------- ---------- -------------
Net increase (decrease).......................... 2,521,671 $ 33,396,518 (1,127,377) $ (14,048,274)
=========== =============== =========== ===============
Wright Current Income Fund -- Standard Shares
Sales................................................ 2,263,717 $ 24,121,027 3,537,930 $ 36,704,939
Issued to shareholders in payment
of distributions declared.......................... 310,036 3,306,097 323,638 3,388,896
Redemptions.......................................... (1,275,036) (13,585,460) (2,892,503) (30,343,335)
---------- ------------- ---------- -------------
Net increase..................................... 1,298,717 $ 13,841,664 969,065 $ 9,750,500
=========== =============== =========== ===============
Period from July 7, 1997, the
Inception of Offering Institutional
Wright Current Income Fund Fund-- Institutional Shares Shares, to December 31, 1997
--------------------------------------
Sales................................................ - $ - 2,093,926 $ 20,960,187
Issued to shareholders in payment
of distributions declared.......................... 134,484 1,363,651 61,134 615,830
---------- ------------- ---------- -------------
Net increase..................................... 134,484 $ 1,363,651 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:
Year Ended December 31, 1998
-----------------------------
Wright Total
Return Bond Fund
- -------------------------------------------------------------------------------
Purchases --
Non-U.S. Gov't Obligations $ 21,889,421
==============
U.S. Gov't Obligations $ 28,325,946
==============
Sales --
Non-U.S. Gov't Obligations $ 2,998,919
==============
U.S. Gov't Obligations $ 20,717,269
==============
Increases and decreases in each Fund's investment in its corresponding
Portfolio for the year ended December 31, 1998 were as follows:
WNTB WUSTB WCIF
- -----------------------------------------------------------------------------
Increases $17,618,408 $18,675,207 $24,506,099
Decreases 34,539,216 33,182,454 15,586,545
- -----------------------------------------------------------------------------
(7) FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES
The cost and unrealized appreciation (depreciation) at December 31, 1998,
as computed on a federal income tax basis, are as follows:
Wright Total Return
Bond Fund
- ------------------------------------------------------------------------------
Aggregate cost............................ $ 109,135,836
============
Gross unrealized appreciation............. $ 5,524,869
Gross unrealized depreciation............. (126,444)
-------------
Net unrealized appreciation............... $ 5,398,425
============
<PAGE>
(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 year ended December 31, 1998.
<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. Government Near Term Fund
(formerly 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, 1998, the related statements of operations for the year
then ended, the statements of changes in net assets for the years ended
December 31, 1998 and 1997, and the financial highlights for each of
the years in the five-year period ended December 31, 1998. 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, 1998, 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, 1998, 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 29, 1999
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
STATEMENTS OF ASSETS AND LIABILITIES
December 31, 1998
================================================================================
<TABLE>
<CAPTION>
Selected Junior International
Blue Chip Blue Chip Blue Chip
Equities Portfolio Equities Portfolio Equities Portfolio
(WBC) (WJBC) (WIBC)
- ------------------------------------------------------------------------------------------------------------------------------
ASSETS:
Investments -
<S> <C> <C> <C>
Identified cost................................. $ 165,814,471 $ 33,305,483 $169,956,603
Unrealized appreciation......................... 55,613,395 1,430,611 41,784,745
------------ ------------ ------------
Total investments, at value (Note 1A)......... $ 221,427,866 $ 34,736,094 $211,741,348
Foreign currency at value (identified cost $1,503,754) - - 1,457,673
Cash.............................................. 4,123 3,187 2,646
Dividends and interest receivable................. 210,471 50,272 135,792
Receivable for refundable foreign taxes withheld.. - - 186,471
Deferred organization expenses (Note 1C).......... 20,810 20,810 20,810
------------ ------------ ------------
Total Assets.................................. $ 221,663,270 $ 34,810,363 $213,544,740
------------ ------------ ------------
LIABILITIES:
Payable for investments purchased................. $ - $ 503,406 $ 1,289,748
Payable to Investment Adviser..................... - 565 -
Accrued expenses and other liabilities............ 6,579 2,905 24,450
------------ ------------ ------------
Total Liabilities............................... $ 6,579 $ 506,876 $ 1,314,198
------------ ------------ ------------
NET ASSETS APPLICABLE TO
INVESTORS' INTEREST IN PORTFOLIO.................. $ 221,656,691 $ 34,303,487 $212,230,542
============= ============= =============
SOURCES OF NET ASSETS:
Net proceeds from capital contributions and
withdrawals..................................... $ 166,043,296 $ 32,872,876 $170,498,357
Unrealized appreciation of investments
and foreign currency transactions (computed
on the basis of identified cost)................ 55,613,395 1,430,611 41,732,185
------------ ------------ ------------
Total......................................... $ 221,656,691 $ 34,303,487 $212,230,542
============= ============= =============
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
STATEMENTS OF ASSETS AND LIABILITIES
December 31, 1998
================================================================================
<TABLE>
<CAPTION>
U.S. Government U.S. Treasury Current Income
Near Term Portfolio Portfolio Portfolio
(WNTB) (WUSTB) (WCIF)
- --------------------------------------------------------------------------------------------------------------------------
ASSETS:
Investments -
<S> <C> <C> <C>
Identified cost................................. $ 89,119,160 $ 59,980,205 $110,915,436
Unrealized appreciation......................... 1,559,133 5,071,220 2,142,565
------------ ------------ ------------
Total investments, at value (Note 1A)......... $ 90,678,293 $ 65,051,425 $113,058,001
Cash.............................................. 4,655 1,339,700 3,278
Interest receivable............................... 1,500,729 915,025 631,048
Deferred organization expenses (Note 1C).......... 19,879 19,859 19,685
Receivable from Investment Adviser................ - 6,000 -
------------ ------------ ------------
Total Assets.................................. $ 92,203,556 $ 67,332,009 $113,712,012
------------ ------------ ------------
LIABILITIES:
Accrued expenses and other liabilities............ $ 3,581 $ 2,356 $ 5,260
------------ ------------ ------------
NET ASSETS APPLICABLE TO
INVESTORS' INTEREST IN PORTFOLIO.................. $ 92,199,975 $ 67,329,653 $113,706,752
============= ============= =============
SOURCES OF NET ASSETS:
Net proceeds from capital contributions and
withdrawals..................................... $ 90,640,842 $ 62,258,433 $111,564,187
Unrealized appreciation of investments
(computed on the basis of identified cost)...... 1,559,133 5,071,220 2,142,565
------------ ------------ ------------
Total......................................... $ 92,199,975 $ 67,329,653 $113,706,752
============= ============= =============
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
STATEMENTS OF OPERATIONS
For the Year Ended December 31, 1998
================================================================================
<TABLE>
<CAPTION>
Selected Junior 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....................................... $ 3,749,260 $ 382,152 $ 4,533,826
Interest........................................ 215,554 33,792 554,818
Less: Foreign taxes............................. - - (503,355)
------------ ------------ ------------
Total income.................................. $ 3,964,814 $ 415,944 $ 4,585,289
------------ ------------ ------------
Expenses -
Investment Adviser fee (Note 2)................. $ 1,597,908 $ 190,404 $ 1,990,690
Administrator fee (Note 2)...................... 253,446 63,943 256,090
Compensation of Trustees not affiliated with the
Investment Adviser or Administrator........... 1,415 1,267 1,415
Custodian fee (Note 1D)......................... 65,000 35,416 317,245
Interest expense................................ 917 117 26
Audit fees...................................... 28,500 19,800 28,500
Amortization of organization expenses (Note 1C). 5,771 5,771 5,771
Miscellaneous................................... 170 3,830 -
------------ ------------ ------------
Total expenses................................ $ 1,953,127 $ 320,548 $ 2,599,737
------------ ------------ ------------
Deduct -.......................................
Reduction of Investment Adviser fee
(Note 2)................................... $ - $ 8,015 $ -
Custodian fee (Note 1D)....................... - 6,736 -
------------ ------------ ------------
Total deductions........................... $ - $ 14,751 $ -
------------ ------------ ------------
Net expenses............................. $ 1,953,127 $ 305,797 $ 2,599,737
------------ ------------ ------------
Net investment income................. $ 2,011,687 $ 110,147 $ 1,985,552
------------ ------------ ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Net realized gain on investment and foreign currency
transactions (identified cost basis)............ $ 15,538,127 $ 154,874 $ 20,726,522
Change in unrealized appreciation (depreciation) of
investments and translation of assets and liabilities in
foreign currencies.............................. (20,336,710) (2,056,708) (11,296,007)
------------ ------------ ------------
Net realized and unrealized gain (loss) on investments
and foreign currency............................ $ (4,798,583) $ (1,901,834) $ 9,430,515
------------ ------------ ------------
Net increase (decrease) in net assets
from operations............................ $ (2,786,896) $ (1,791,687) $ 11,416,067
============= ============= =============
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
STATEMENTS OF OPERATIONS
For the Year Ended December 31, 1998
================================================================================
<TABLE>
<CAPTION>
U.S. Government U.S. Treasury Current Income
Near Term Portfolio Portfolio Portfolio
(WNTB) (WUSTB) (WCIF)
- -----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1B):
Income -
<S> <C> <C> <C>
Interest income................................. $ 6,293,373 $ 4,312,872 $ 7,361,461
------------ ------------ ------------
Expenses -
Investment Adviser fee (Note 2)................. $ 404,601 $ 289,260 $ 430,622
Administrator fee (Note 2)...................... 91,438 66,170 95,021
Compensation of Trustees not affiliated with the
Investment Adviser or Administrator........... 1,361 1,446 1,173
Custodian fees (Note 1D)........................ 44,792 32,887 48,021
Audit fees...................................... 26,640 21.040 17,800
Legal fees...................................... 60 - -
Amortization of organization expenses (Note 1C). 5,804 5,822 5,822
Miscellaneous................................... 71 2,196 5,389
------------ ------------ ------------
Total expenses................................ $ 574,767 $ 418,821 $ 603,848
------------ ------------ ------------
Deduct -
Reduction of custodian fee (Note 1D)............ $ 6,187 $ 26,920 $ -
Allocation of expense to the Investment Adviser
(Note 2)...................................... - 6,000 -
------------ ------------ ------------
Net expenses.................................. $ 568,580 $ 385,901 $ 603,848
------------ ------------ ------------
Net investment income................. $ 5,724,793 $ 3,926,971 $ 6,757,613
------------ ------------ ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Net realized gain (loss) on investment
transactions (identified cost basis)............ $ (45,686) $ 984,728 $ (142,545)
Net change in unrealized appreciation
of investments.................................. 580,237 2,386,702 406,744
------------ ------------ ------------
Net realized and unrealized gain on investments... $ 534,551 $ 3,371,430 $ 264,199
------------ ------------ ------------
Net increase in net assets from operations.... $ 6,259,344 $ 7,298,401 $ 7,021,812
============= ============= =============
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
STATEMENTS OF CHANGES IN NET ASSETS
===============================================================================
<TABLE>
<CAPTION>
Selected Blue Chip Junior Blue Chip
Equities Portfolio Equities Portfolio
(WBC) (WJBC)
Year Ended Dec. 31 Year Ended Dec. 31
-----------------------------------------------------------
1998 1997(1) 1998 1997(1)
- -----------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From operations -
<S> <C> <C> <C> <C>
Net investment income.................................. $ 2,011,687 $ 1,748,322 $ 110,147 $ 135,453
Net realized gain on investments....................... 15,538,127 19,731,212 154,874 1,729,605
Change in unrealized appreciation (depreciation)
of investments....................................... (20,336,710) 30,193,816 (2,056,708) 1,275,330
------------ ------------ ------------ ------------
Net increase (decrease) in net assets from operations $ (2,786,896) $ 51,673,350 $ (1,791,687) $ 3,140,388
------------ -------------- ------------ ------------
Capital transactions -
Contributions.......................................... $ 40,294,485 $ 249,862,313 $ 10,001,530 $ 34,412,901
Withdrawals............................................ (75,343,029) (42,043,542) (7,395,707) (4,063,948)
------------ ------------ ------------ ------------
Increase (decrease) in net assets
resulting from capital transactions.................... $(35,048,544) $ 207,818,771 $ 2,605,823 $ 30,348,953
------------ ------------ ------------ ------------
Net increase (decrease) in net assets.................... $(37,835,440) $ 259,492,121 $ 814,136 $ 33,489,341
NET ASSETS:
At beginning of year..................................... 259,492,131 10 33,489,351 10
------------ ------------ ------------ ------------
At end of year........................................... $ 221,656,691 $ 259,492,131 $ 34,303,487 $ 33,489,351
============= ============= ============= =============
<FN>
(1) For the period from the start of business, May 2, 1997 to December 31, 1997.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
STATEMENTS OF CHANGES IN NET ASSETS
================================================================================
<TABLE>
<CAPTION>
International Blue Chip U.S. Government
Equities Portfolio Near Term Portfolio
(WIBC) (WNTB)
Year Ended Dec. 31 Year Ended Dec. 31
----------------------------------------------------------------
1998 1997(1) 1998 1997(1)
- ------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From operations -
<S> <C> <C> <C> <C>
Net investment income.................................. $ 1,985,552 $ 1,773,934 $ 5,724,793 $ 4,610,880
Net realized gain (loss) on investments................ 20,726,522 14,916,066 (45,686) (75,865)
Change in unrealized appreciation (depreciation)
of investments....................................... (11,296,007) (6,279,704) 580,237 771,013
------------ ------------ ------------ ------------
Net increase in net assets from operations.......... $ 11,416,067 $ 10,410,296 $ 6,259,344 $ 5,306,028
------------ ------------ ------------ ------------
Capital transactions -
Contributions.......................................... $110,766,485 $ 388,886,471 $ 17,618,408 $136,940,825
Withdrawals............................................ (166,998,630) (142,250,157) (34,539,216) (39,385,424)
------------ ------------ ------------ ------------
Increase (decrease) in net assets
resulting from capital transactions.................... $(56,232,145) $ 246,636,314 $(16,920,808) $ 97,555,401
------------ ------------ ------------ ------------
Net increase (decrease) in net assets.................... $(44,816,078) $ 257,046,610 $(10,661,464) $102,861,429
NET ASSETS:
At beginning of year..................................... 257,046,620 10 102,861,439 10
------------ ------------ ------------ ------------
At end of year........................................... $212,230,542 $ 257,046,620 $ 92,199,975 $102,861,439
============= ============= ============= =============
<FN>
(1) For the period from the start of business, May 2, 1997 to December 31, 1997.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
STATEMENTS OF CHANGES IN NET ASSETS
================================================================================
<TABLE>
<CAPTION>
U.S. Treasury Current Income
Portfolio Portfolio
(WUSTB) (WCIF)
Year Ended Dec. 31 Year Ended Dec. 31
-------------------------------------------------------------
1998 1997(1) 1998 1997(1)
- ----------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From operations -
<S> <C> <C> <C> <C>
Net investment income.................................. $ 3,926,971 $ 2,558,433 $ 6,757,613 $ 4,096,150
Net realized gain (loss) on investments................ 984,728 - (142,545) (56,605)
Change in unrealized appreciation
of investments....................................... 2,386,702 3,393,339 406,744 2,551,399
------------ ------------ ------------ ------------
Net increase in net assets from operations.......... $ 7,298,401 $ 5,951,772 $ 7,021,812 $ 6,590,944
------------ ------------ ------------ ------------
Capital transactions -
Contributions.......................................... $ 18,675,207 $ 76,417,800 $ 24,506,099 $117,569,110
Withdrawals............................................ (33,182,454) (7,831,083) (15,586,545) (26,394,678)
------------ ------------ ------------ ------------
Increase (decrease) in net assets
resulting from capital transactions.................... $(14,507,247) $ 68,586,717 $ 8,919,554 $ 91,174,432
------------ ------------ ------------ ------------
Net increase (decrease) in net assets.................... $ (7,208,846) $ 74,538,489 $ 15,941,366 $ 97,765,376
NET ASSETS:
At beginning of year..................................... 74,538,499 10 97,765,386 10
------------ ------------ ------------ ------------
At end of year........................................... $ 67,329,653 $ 74,538,499 $113,706,752 $ 97,765,386
============= ============= ============= =============
<FN>
(1) For the period from the start of business, May 2, 1997 to December 31, 1997.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
WRIGHT MANAGED EQUITY TRUST PORTFOLIOS
================================================================================
<TABLE>
<CAPTION>
Selected Blue Chip Junior Blue Chip International Blue Chip
Equities Portfolio Equities Portfolio Equities Portfolio
SUPPLEMENTARY DATA (WBC) (WJBC) (WIBC)
- -------------------------------------------------------------------------------------------------------------------------------
Year Ended Dec. 31 Year Ended Dec. 31 Year Ended Dec. 31
1998 1997(2) 1998 1997(2) 1998 1997(2)
Ratios (As of percentage of average daily net assets)++:
<S> <C> <C> <C> <C> <C> <C>
Net expenses(1) ......................... 0.77% 0.66%+ 0.90% 0.48%+ 1.01% 0.90%+
Net investment income.................... 0.80% 1.08%+ 0.32% 0.99%+ 0.77% 0.95%+
Portfolio Turnover.......................... 78% 28% 49% 36% 66% 37%
Net assets, end of period (000 omitted)..... $221,657 $259,492 $34,303 $ 33,489 $212,231 $257,047
<FN>
++ For the year ended December 31, 1998 and the period from the start of
business, May 2, 1997 to December 31, 1997, the operating expenses of WJBC
reflect a reduction of the investment adviser fee. Had such action not been
taken, the ratios would have been as follows:
1998 1997(2)
---- -------
Ratios (As of percentage of average daily net assets):
Expenses .......................................... . 0.93% 0.80%+
Net investment income............................... 0.29% 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
0.88% for the year ended December 31, 1998 and 0.45% for the period from the
start of business, May 2, 1997 to December 31, 1997, for WJBC.
(2)For the period from the start of business, May 2, 1997 to December 31, 1997.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
WRIGHT MANAGED INCOME TRUST PORTFOLIOS
================================================================================
<TABLE>
<CAPTION>
U.S. Government U.S. Treasury Current Income
Near Term Portfolio Portfolio Portfolio
SUPPLEMENTARY DATA (WNTB) (WUSTB) (WCIF)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended Dec. 31 Year Ended Dec. 31 Year Ended Dec. 31
1998 1997(2) 1998 1997(2) 1998 1997(2)
Ratios (As a percentage of average daily net assets)++:
<S> <C> <C> <C> <C> <C> <C>
Net expenses(1) ......................... 0.57% 0.46%+ 0.57% 0.56%+ 0.57% 0.48%+
Net investment income.................... 5.68% 6.24%+ 5.45% 6.11%+ 6.33% 6.66%+
Portfolio Turnover.......................... 10% 0% 7% 0% 1% 7%
Net assets, end of period (000 omitted)..... $92,200 $102,861 $67,330 $74,536 $113,707 $97,765
<FN>
+ 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 0.56% and 0.45% for the
year ended December 31, 1998 and the period from the start of business, May 2,
1997 to December 31, 1997, for WNTB, respectively and 0.54% and 0.41% for the
year ended December 31, 1998 and the period from the start of business, May 2,
1997 to December 31, 1997, for WUSTB, respectively.
(2)For the period from the start of business, May 2, 1997 to December 31, 1997.
++ For the year ended December 31,1998, the operating expenses of WUSTB
reflect an allocating of expenses to the investment adviser. Had such action not
been taken, the ratios would have been as follows:
Ratios (as a percentage of average daily net assets):
1998
------
Expenses 0.58%
Net Expenses 0.55%
Net Investment Income 5.44%
</FN>
</TABLE>
See notes to financial statements
<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. Government Near Term Portfolio (Term Portfolio)
(formerly U.S. Treasury Near 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.
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. Securities traded
on more than one U.S. or foreign securities exchange are valued at the last sale
price on the exchange representing the principal market for such securities, if
those prices are deemed to be representative of market values at the close of
business. Unlisted or listed securities, for which closing sale prices are not
available, are valued at the mean between latest bid and asked prices. Fixed
income securities for which market quotations are readily available are valued
on the basis of valuations supplied by a pricing service. 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, or deemed
not to be representative of market values at the close of business, are
appraised at their fair value as determined in good faith by or at the direction
of the Trustees of the Trust.
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.
F. Use of Estimates - The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
<PAGE>
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 Portfolios 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 Portfolio 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, 1998, the effective
annual rate was 0.63% for the Selected Portfolio, 0.55% for the Junior
Portfolio, 0.77% for the International Portfolio, 0.41% for the Term Portfolio,
0.40% for the Treasury Portfolio, and 0.41% for the Income Portfolio. To enhance
the net income of the Fund, Wright made a reduction of its investment adviser
fee by $8,015 for the Junior Portfolio. Additionally, $6,000 of expenses were
allocated to the investment adviser for the U.S. Treasury Portfolio.
Effective February 1, 1998, the Trust 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, 1998, the effective annual rate was 0.10% for the Selected
Portfolio, 0.18% for the Junior Portfolio, 0.10% for the International
Portfolio, 0.09% for the Term Portfolio, 0.09% for the Treasury Portfolio, and
0.09% for the Income 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 year ended December 31, 1998 were as follows:
<PAGE>
<TABLE>
<CAPTION>
Selected Junior International U.S. Government U.S. Current
Blue Chip Blue Chip Blue Chip Near Term Treasury Income
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
- ----------------------------------------------------------------------------------------------------------------------------
Purchases -
<S> <C> <C> <C> <C> <C> <C>
Non-U.S. Gov't Obligations $ 164,479,790 $ 19,599,239 $ 157,872,009 $ -- $ -- $ --
============ ============ ============ ============ ============ ============
U.S. Gov't Obligations $ -- $ -- $ -- $ 192,215,000 $ 4,898,031 $ 34,927,315
============ ============ ============ ============ ============ ============
Sales -
Non-U.S. Gov't Obligations $ 193,276,458 $ 16,917,180 $ 215,793,262 $ -- $ -- $ --
============ ============ ============ ============ ============ ============
U.S. Gov't. Obligations $ -- $ -- $ -- $ 10,311,660 $ 15,436,855 $ 1,494,150
============ ============ ============ ============ ============ ============
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
(4) FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES
The cost and unrealized appreciation (depreciation) of the investment
securities owned at December 31, 1998, as computed on a federal income tax
basis, are as follows:
<TABLE>
<CAPTION>
Selected Junior International U.S. Government 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 $166,410,569 $ 33,305,483 $171,244,703 $ 89,119,160 $ 59,980,205 $110,915,437
============ ============ ============ ============ ============ ============
Gross unrealized appreciation $ 58,051,455 $ 4,309,980 $ 56,303,795 $ 1,676,564 $ 5,085,098 $ 2,271,668
Gross unrealized depreciation (2,805,346) (2,879,369) (15,807,150) (117,431) (13,878) (129,103)
----------- ----------- ----------- ----------- ----------- -----------
Net unrealized appreciation $ 55,246,109 $ 1,430,611 $ 40,496,645 $ 1,559,133 $ 5,071,220 $ 2,142,565
============ ============ ============ ============ ============ ============
- ------------------------------------------------------------------------------------------------------------------------------
</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, 1998, the International Portfolio had no forward foreign
currency exchange contracts open.
<PAGE>
(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
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 Portfolios participate with other funds managed by Wright in a
committed $20 million unsecured line of credit agreement with a bank. The
Portfolios may temporarily borrow from the line of credit to settle investment
transactions. Interest is charged to each Portfolio 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 Portfolios did not have significant borrowings or allocated fees
during the period ended December 31, 1998.
(8) SUBSEQUENT EVENT
Effective January 1, 1999, Austria, Belgium, Finland, France, Germany,
Ireland, Italy, Luxembourg, Netherlands, Portugal, and Spain have adopted the
Euro as its common currency. Existing national currencies of these countries
will be sub-currencies of the Euro until July 1, 2002, when the old currencies
disappear entirely. The conversion to Euro impacts only the Wright International
Blue Chip Portfolio and there is no financial statement implication as of
December 31, 1998.
<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. Government Near Term Portfolio (formerly Wright U.S. Treasury Near
Term Portfolio), Wright U.S. Treasury Portfolio, and Wright Current
Income Portfolio) as of December 31, 1998, the related statements of
operations for the year then ended, and the statements of changes in
net assets and supplementary data for the year then ended and 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, 1998, 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, 1998, the results of their
operations, the changes in their net assets, and their supplementary
data for the respective stated periods in conformity with generally
accepted accounting principles.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
January 29, 1999
<PAGE>
WRIGHT MAJOR BLUE CHIP EQUITIES FUND (WMBC)
PORTFOLIO OF INVESTMENTS
December 31, 1998
================================================================================
Shares Value
-------- -------
Equity Interests -- 96.3%
APPAREL -- 1.8%
VF Corp............................. 19,900 $ 932,813
-----------
AUTOMOTIVE -- 6.0%
Dana Corporation.................... 24,500 $ 1,001,437
Eaton Corp.......................... 14,400 1,017,900
Johnson Controls.................... 17,400 1,026,600
-----------
$ 3,045,937
-----------
CHEMICALS -- 8.2%
Air Products & Chemicals............ 23,100 $ 924,000
Morton International Inc............ 11,000 269,500
PPG Industries...................... 17,100 996,075
Rohm & Haas Co...................... 32,000 964,000
Sherwin Williams Co................. 34,000 998,750
-----------
$ 4,152,325
-----------
DIVERSIFIED -- 5.8%
General Electric Co................. 10,000 $ 1,020,625
Tyco International Ltd.............. 12,600 950,513
United Technologies................. 9,200 1,000,500
-----------
$ 2,971,638
-----------
DRUGS, COSMETICS & HEALTHCARE -- 4.0%
Johnson & Johnson................... 12,500 $ 1,048,437
Merck & Co., Inc.................... 6,700 989,506
-----------
$ 2,037,943
-----------
ELECTRONICS -- 13.4%
Computer Associates Int'l. Inc...... 23,100 $ 984,637
EMC Corp./Mass*..................... 13,700 1,164,500
Intel Corp.......................... 9,400 1,114,487
International Business Machines..... 5,800 1,071,550
Raytheon Co......................... 19,400 1,033,050
Sun Microsystems, Inc*.............. 16,800 1,438,500
-----------
$ 6,806,724
-----------
FINANCIAL -- 13.5%
American Express Co................. 9,500 $ 971,375
American International Group........ 10,125 978,328
BB&T Corporation.................... 23,400 943,312
Fannie Mae.......................... 12,300 910,200
Jefferson-Pilot Corp................ 14,000 1,050,000
KeyCorp. (New)...................... 31,400 1,004,800
MBIA, Inc........................... 15,600 1,022,775
-----------
$ 6,880,790
-----------
MACHINERY & EQUIPMENT -- 7.3%
Caterpillar......................... 15,200 $ 699,200
Dover Corp.......................... 26,600 974,225
Ingersoll Rand Co................... 21,450 1,006,809
Pitney-Bowes Inc.................... 15,800 1,043,788
-----------
$ 3,724,022
-----------
METAL PRODUCERS -- 2.1%
Nucor Corp.......................... 24,000 $ 1,038,000
-----------
METAL PRODUCTS MANUFACTURERS -- 1.8%
Illinois Tool Works Inc............. 16,100 $ 933,800
-----------
OIL, GAS, COAL & RELATED SERVICES -- 4.5%
Exxon Corp.......................... 12,600 $ 921,375
Halliburton Company................. 12,400 367,350
Mobil Corp.......................... 11,300 984,513
-----------
$ 2,273,238
-----------
PRINTING & PUBLISHING -- 1.8%
Gannett Co. Inc..................... 14,000 $ 926,625
-----------
RECREATION -- 2.0%
Hasbro Inc.......................... 28,400 $ 1,025,950
-----------
<PAGE>
RETAILERS -- 11.9%
Costco Companies Inc*............... 14,100 $ 1,017,844
Lowes Co's., Inc.................... 21,600 1,105,650
May Dept. Stores.................... 16,100 972,038
Rite-Aid Corporation................ 19,400 961,513
TJX Cos. Inc. (New)................. 36,200 1,049,800
Wal-Mart Stores..................... 11,800 960,963
-----------
$ 6,067,808
-----------
TRANSPORTATION -- 2.0%
Southwest Airlines Inc.............. 45,850 $ 1,028,759
-----------
UTILITIES -- 8.2%
Alltel Corporation.................. 18,100 $ 1,082,606
Bellsouth Corporation............... 21,200 1,057,350
Duke Energy Corp.................... 15,500 992,969
SBC Communications, Inc............. 18,800 1,008,150
-----------
$ 4,141,075
-----------
MISCELLANEOUS -- 2.0%
Avery-Dennison Corp................. 22,000 $ 991,375
-----------
TOTAL EQUITY INTERESTS -- 96.3%
(identified cost, $37,042,657) $ 48,978,822
Reserve Funds -- 5.9%
Face Amount
------------
American Express Corp., 4.702%, 1/4/99
(at amortized cost).............$2,505,000 $ 2,505,000
General Electric Cap Corp., 4.702%, 1/4/99
(at amortized cost)...............$525,000 525,000
-----------
$ 3,030,000
Total INVESTMENTS -- 102.2%
(identified cost, $40,072,657) $ 52,008,822
OTHER ASSETS,
LESS LIABILITIES -- (2.2%) (1,130,356)
-----------
NET ASSETS -- 100% $ 50,878,466
============
* Non-income-producing security.
See notes to financial statements
<PAGE>
WRIGHT TOTAL RETURN BOND FUND (WTRB)
PORTFOLIO OF INVESTMENTS
December 31, 1998
================================================================================
<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>
$ 1,100,000 Ameritech Cap 6.150% 1/15/08 $ 105.351 $ 1,158,861 5.84% 5.48%
2,000,000 Associates Corp. 6.450% 10/15/01 102.543 2,050,860 6.29% 5.41%
1,000,000 First Data Corp. 5.800% 12/15/08 98.885 988,850 5.87% 5.95%
3,200,000 Ford Motor Co. 6.500% 8/1/18 102.452 3,278,464 6.34% 6.25%
2,825,000 General Elec. Capital Corp. 6.500% 11/1/06 106.608 3,011,676 6.10% 5.36%
2,000,000 GMAC 6.375% 10/15/04 103.102 2,062,040 6.18% 5.66%
2,675,000 IBM Credit Corp. 6.200% 8/28/00 101.918 2,726,307 6.08% 5.08%
1,000,000 J.P. Morgan 6.875% 1/15/07 106.177 1,061,770 6.48% 6.25%
INDUSTRIALS
- --------------
$ 1,795,000 Hasbro Inc. 5.600% 11/1/05 $ 98.730 $ 1,772,204 5.67% 5.50%
3,200,000 Kimberly Clark Corp. 6.250% 7/15/18 103.294 3,305,408 6.05% 5.89%
2,400,000 McDonald's Corp. 6.500% 8/1/07 107.864 2,588,736 6.03% 5.32%
2,000,000 Walt Disney Co. 6.750% 3/30/06 108.214 2,164,280 6.24% 5.31%
3,500,000 Warner-Lambert Co. 5.750% 1/15/03 101.491 3,552,185 5.67% 5.04%
UTILITIES
- ----------
$ 1,000,000 Duke Energy Corp. 6.000% 12/1/28 $ 96.080 $ 960,800 6.24% 6.21%
1,680,000 Lucent Tech. 5.500% 11/15/08 101.136 1,699,084 5.44% 5.40%
1,500,000 New York Telecom. 6.000% 4/15/08 103.626 1,554,390 5.79% 5.50%
2,000,000 SBC Communications Inc. 6.625% 11/1/09 109.329 2,186,580 6.06% 5.55%
955,000 Tennessee Valley Authority 6.000% 3/15/13 104.672 999,617 5.73% 5.52%
----------
Total Corporate Bonds (identified cost, $35,996,403) - 32.0% $37,122,112
GOVERNMENT INTERESTS
U.S. GOVERNMENT AGENCIES
- -------------------------
$ 1,280,000 Federal Home Loan Mortgage 5.800% 9/2/08 103.500 $ 1,324,800 5.60% 5.35%
615,000 Federal Home Loan Mortgage 5.750% 4/15/08 103.391 635,855 5.56% 5.25%
500,000 Federal Home Loan Mortgage 6.125% 4/15/08 99.410 497,050 6.16% -
1,250,000 Federal Home Loan Mortgage 5.540% 10/27/08 98.859 1,235,738 5.60% 5.63%
2,000,000 Federal National Mtg. Assn. 6.400% 11/9/04 102.656 2,053,120 6.23% 5.74%
1,000,000 Federal National Mtg. Assn. 5.750% 6/15/05 103.250 1,032,500 5.57% 5.07%
1,500,000 Federal National Mtg. Assn. 6.560% 11/26/07 103.703 1,555,545 6.33% 5.92%
1,000,000 Federal National Mtg. Assn. 6.170% 1/15/08 101.656 1,016,560 6.07% 5.85%
1,315,000 Federal National Mtg. Assn. 5.750% 2/15/08 103.547 1,361,643 5.55% 5.23%
1,000,000 Federal National Mtg. Assn. 6.000% 5/15/08 105.562 1,055,620 5.68% 5.21%
1,250,000 Federal National Mtg. Assn. 5.625% 3/15/01 101.469 1,268,363 5.54% 4.84%
1,400,000 Federal National Mtg. Assn. 4.750% 11/14/03 98.719 1,382,066 4.81% 5.01%
1,925,000 Federal National Mtg. Assn. 5.350% 10/27/03 98.641 1,898,839 5.42% 5.55%
562,677 GNMA Pool # 436214 6.500% 2/15/13 101.875 573,227 6.38% N/C
1,103,714 GNMA Pool # 422506 6.500% 3/15/26 101.031 1,115,094 6.43% N/C
1,463,890 GNMA Pool # 460726 6.500% 12/15/27 101.000 1,478,529 6.44% N/C
952,848 GNMA Pool # 427199 7.000% 12/15/27 102.312 974,879 6.84% N/C
<PAGE>
U.S. Government Agencies - cont.
- ---------------------------------
$ 500,000 GNMA Pool # 488924 6.500% 11/15/28 $ 101.000 $ 505,000 6.44% N/C
699,080 GNMA Pool # 002671 6.000% 11/20/28 98.625 689,468 6.08% N/C
983,393 GNMA Pool # 463839 6.000% 5/15/13 100.718 990,454 5.96% N/C
491,482 GNMA Pool # 442996 6.000% 6/15/13 100.718 495,012 5.96% N/C
704,593 GNMA Pool # 376400 6.500% 2/15/24 101.062 712,076 6.43% N/C
1,721,929 GNMA Pool # 458672 6.500% 1/15/28 101.000 1,739,149 6.44% N/C
U.S. TREASURIES
- -----------------
$ 1,750,000 U.S. Treasury Bond 8.250% 5/15/05 $ 104.531 $ 1,829,293 7.89% 7.34%
9,475,000 U.S. Treasury Bond 7.250% 5/15/16 121.141 11,478,110 5.98% 5.36%
1,300,000 U.S. Treasury Bond 6.250% 8/15/23 111.766 1,452,958 5.59% 5.37%
3,500,000 U.S. Treasury Bond 6.000% 2/15/26 109.078 3,817,730 5.50% 5.34%
2,000,000 U.S. Treasury Note 5.875% 11/15/99 101.031 2,020,620 5.82% 4.65%
3,300,000 U.S. Treasury Note 5.375% 1/31/00 100.750 3,324,750 5.33% 4.62%
1,900,000 U.S. Treasury Note 5.875% 6/30/00 101.734 1,932,946 5.77% 4.63%
2,500,000 U.S. Treasury Note 5.750% 10/31/00 101.906 2,547,650 5.64% 4.63%
3,000,000 U.S. Treasury Note 7.750% 2/15/01 106.172 3,185,160 7.30% 4.65%
1,700,000 U.S. Treasury Note 7.500% 2/15/05 114.500 1,946,500 6.55% 4.74%
3,000,000 U.S. Treasury Note 6.500% 5/15/05 109.594 3,287,820 5.93% 4.74%
4,100,000 U.S. Treasury Note 6.500% 8/15/05 109.906 4,506,145 5.91% 4.73%
4,000,000 U.S. Treasury Note 6.500% 10/15/06 110.922 4,436,880 5.86% 4.76%
----------
Total Government Interests (identified cost, $67,084,433) - 61.6% $ 71,357,149
COMMERCIAL PAPER - 5.2%
$ 5,690,000 American Express Corp. 4.702% 1/4/99 $ 5,690,000 4.70% 4.70%
365,000 General Elec. Cap. Corp. 4.702% 1/4/99 365,000 4.70% 4.70%
----------
Total Commercial Paper $ 6,055,000
Total Investments (identified cost, $109,135,836) - 98.8% $114,534,261
Other Assets, Less Liabilities - 1.2% 1,403,089
----------
Net Assets -- 100.0% $115,937,350
============
Average Maturity - 8.79 Years (1)
(1) Unaudited.
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT U.S. TREASURY MONEY MARKET FUND (WTMM)
PORTFOLIO OF INVESTMENTS
December 31, 1998
================================================================================
Face Interest Maturity
Amount Issuer Rate Date Value
- -------------------------------------------------------------------------------
$4,200,000 U.S. Treasury Bills 5.020% 01/14/99 $4,192,372
2,100,000 U.S. Treasury Bills 4.750% 01/21/99 2,094,443
3,100,000 U.S. Treasury Bills 4.540% 01/21/99 3,092,181
1,000,000 U.S. Treasury Bills 4.550% 01/21/99 997,472
4,100,000 U.S. Treasury Bills 4.740% 01/28/99 4,085,410
3,400,000 U.S. Treasury Bills 4.850% 02/11/99 3,381,206
3,500,000 U.S. Treasury Bills 4.405% 02/11/99 3,482,441
500,000 U.S. Treasury Bills 4.250% 03/11/99 495,927
5,400,000 U.S. Treasury Bills 4.350% 03/11/99 5,354,978
4,500,000 U.S. Treasury Bills 4.350% 03/18/99 4,458,660
6,000,000 U.S. Treasury Bills 4.350% 03/25/99 5,939,810
5,500,000 U.S. Treasury Bills 4.330% 04/08/99 5,435,832
3,200,000 U.S. Treasury Bills 4.290% 04/15/99 3,160,342
400,000 U.S. Treasury Bills 4.300% 04/15/99 395,031
700,000 U.S. Treasury Bills 4.320% 04/15/99 691,264
7,000,000 U.S. Treasury Bills 4.400% 04/22/99 6,905,018
2,600,000 U.S. Treasury Bills 5.035% 01/07/99 2,597,803
1,200,000 U.S. Treasury Bills 5.000% 01/07/99 1,199,000
1,300,000 U.S. Treasury Bills 4.620% 02/04/99 1,294,314
1,900,000 U.S. Treasury Bills 4.650% 02/04/99 1,891,656
350,000 U.S. Treasury Bills 4.700% 02/04/99 348,446
200,000 U.S. Treasury Bills 4.720% 02/04/99 199,108
200,000 U.S. Treasury Bills 3.940% 03/04/99 198,643
2,000,000 U.S. Treasury Bills 4.330% 04/01/99 1,978,335
300,000 U.S. Treasury Bills 4.380% 04/01/99 296,716
500,000 U.S. Treasury Bills 4.340% 04/01/99 494,575
1,300,000 U.S. Treasury Bills 4.350% 04/01/99 1,285,862
400,000 U.S. Treasury Bills 4.420% 04/01/99 395,580
2,075,000 U.S. Treasury Bills 4.100% 04/29/99 2,047,099
500,000 U.S. Treasury Bills 4.380% 04/29/99 492,822
500,000 U.S. Treasury Bills 4.480 04/29/99 492,658
3,300,000 U.S. Treasury Bills 4.375% 05/27/99 3,241,438
400,000 U.S. Treasury Bills 4.340% 05/27/99 392,960
2,000,000 U.S. Treasury Bills 4.380% 05/27/99 1,964,474
3,750,000 U.S. Treasury Bills 4.340% 07/22/99 3,658,674
$1,000,000 U.S. Treasury Notes 5.500% 02/28/99 $1,018,643
1,000,000 U.S. Treasury Notes 5.500% 02/28/99 1,018,680
2,000,000 U.S. Treasury Notes 5.500% 02/28/99 2,037,363
1,000,000 U.S. Treasury Notes 5.500% 02/28/99 1,018,681
5,400,000 U.S. Treasury Notes 6.375% 05/15/99 5,482,891
1,300,000 U.S. Treasury Notes 5.000% 02/15/99 1,324,292
700,000 U.S. Treasury Notes 5.000% 02/15/99 713,206
----------
Total Investments
At Amortized Cost -- 99.9% $91,246,306
Other Assets, less Liabilities -- 0.1% 76,686
----------
Net Assets -- 100.0% $91,322,992
===========
See notes to financial statements
<PAGE>
SELECTED BLUE CHIP EQUITIES PORTFOLIO (WBC)
PORTFOLIO OF INVESTMENTS
December 31, 1998
================================================================================
Shares Value
------- --------
Equity Interests -- 98.9%
APPAREL -- 2.2%
Liz Claiborne....................... 30,000 $ 946,875
VF Corp............................. 84,660 3,968,437
-----------
$ 4,915,312
-----------
AUTOMOTIVE -- 7.2%
Dana Corp........................... 95,800 $ 3,915,825
Johnson Controls.................... 70,400 4,153,600
Modine Mfg. Co...................... 115,700 4,194,125
Superior Industries Int'l. Inc...... 135,500 3,768,594
-----------
$ 16,032,144
-----------
CHEMICALS -- 3.7%
Cooper Tire & Rubber Co............. 60,000 $ 1,226,250
Morton International Inc............ 33,000 808,500
PPG Industries Inc.................. 53,800 3,133,850
Rohm & Haas Co...................... 100,800 3,036,600
-----------
$ 8,205,200
-----------
CONSTRUCTION -- 6.1%
Jacobs Engineering Group*........... 104,500 4,258,375
Southdown, Inc...................... 72,408 4,285,649
Texas Industries Inc................ 60,000 1,616,250
Toll Brothers*...................... 146,500 3,305,406
-----------
$ 13,465,680
-----------
DIVERSIFIED -- 4.5%
Carlisle Corp....................... 30,000 $ 1,548,750
Crane Company....................... 137,650 4,155,309
Lancaster Colony Corp............... 129,500 4,160,187
-----------
$ 9,864,246
-----------
DRUGS, COSMETICS & HEALTHCARE -- 3.9%
Johnson & Johnson................... 57,000 $ 4,780,875
Merck & Co., Inc.................... 26,800 3,958,025
-----------
$ 8,738,900
-----------
ELECTRONICS -- 9.2%
Dallas Semiconductor Corp........... 104,900 $ 4,274,675
Intel Corporation................... 32,000 3,794,000
International Business Machine...... 23,000 4,249,250
Raytheon Co. Class B................ 67,260 3,581,595
Sun Microsystems Inc*............... 52,900 4,529,562
-----------
$ 20,429,082
-----------
FINANCIAL -- 18.2%
AMBAC Inc........................... 66,200 $ 3,984,413
BB&T Corporation.................... 116,800 4,708,500
Commerce Bancshares, Inc............ 86,691 3,684,374
Compass Bancshares.................. 109,750 4,177,359
Edwards (A.G.), Inc................. 123,750 4,609,688
Federal National Mort. Assoc........ 55,000 4,070,000
First Security CP................... 168,750 3,944,531
KeyCorp (New)....................... 108,000 3,456,000
MBIA Inc............................ 54,000 3,540,375
Southtrust Corporation.............. 112,650 4,161,009
-----------
$ 40,336,249
-----------
FOOD -- 3.3%
Dean Foods Company.................. 81,000 $ 3,305,813
Universal Foods Corp................ 144,000 3,951,000
-----------
$ 7,256,813
-----------
MACHINERY & EQUIPMENT -- 3.0%
Caterpillar......................... 69,700 $ 3,206,200
Ingersoll Rand Co................... 73,950 3,471,028
-----------
$ 6,677,228
-----------
METAL PRODUCERS -- 0.4%
Carpenter Technology................ 28,000 $ 950,250
-----------
METAL PRODUCTS MANUFACTURERS -- 6.0%
Aeroquip-Vickers Inc................ 30,000 $ 898,125
Kaydon Corp......................... 110,000 4,406,875
Snap-on Inc......................... 110,600 3,850,263
Trinity Industries.................. 106,800 4,111,800
-----------
$ 13,267,063
-----------
<PAGE>
OIL, GAS & COAL -- 1.0%
Halliburton Company................. 71,500 $ 2,118,188
-----------
PRINTING & PUBLISHING -- 3.2%
American Greetings Corp............. 76,900 $ 3,157,706
Banta (George) Corp................. 142,748 3,907,727
-----------
$ 7,065,433
-----------
RECREATION -- 3.6%
Brinker International Inc.*......... 143,800 $ 4,152,225
Brunswick Corp...................... 45,000 1,113,750
Ryan's Family Steak Houses*......... 223,000 2,759,625
-----------
$ 8,025,600
-----------
RETAILERS -- 3.8%
Ross Stores Inc..................... 96,700 $ 3,807,562
Wal-Mart Stores Inc................. 56,000 4,560,500
-----------
$ 8,368,062
-----------
TRANSPORTATION -- 5.9%
Comair Holdings, Inc................ 127,400 $ 4,299,750
U.S. Freightways Corp............... 147,800 4,304,675
Werner Enterprises Inc.............. 255,750 4,523,578
-----------
$ 13,128,003
-----------
UTILITIES - 10.7%
Aliant Comm Inc..................... 96,200 $ 3,932,175
Duke Energy Corp.................... 52,400 3,356,875
NIPSCO Industries Inc............... 127,400 3,877,738
Questar Corp........................ 167,000 3,235,625
SBC Communications Inc.............. 86,000 4,611,750
TECO Energy, Inc.................... 166,000 4,679,125
-----------
$ 23,693,288
-----------
MISCELLANEOUS -- 3.0%
Kelly Services...................... 103,500 $ 3,286,125
Sierra Health Svcs*................. 160,000 3,370,000
-----------
$ 6,656,125
-----------
TOTAL EQUITY INTERESTS - 98.9%
(identified cost, $163,579,471) $219,192,866
------------
Reserve Funds -- 1.0%
Face Amount
-----------
American Express Corp., 4.702%, 1/4/99
(at amortized cost).............$2,235,000 $ 2,235,000
-----------
Total INVESTMENTS -- 99.9%
(identified cost, $165,814,471) $221,427,866
OTHER ASSETS,
LESS LIABILITIES -- 0.1% 228,825
-----------
NET ASSETS -- 100% $221,656,691
============
* Non-income-producing security.
See notes to financial statements
<PAGE>
JUNIOR BLUE CHIP EQUITIES PORTFOLIO (WJBC)
PORTFOLIO OF INVESTMENTS
December 31, 1998
================================================================================
Shares Value
-------- -------
Equity Interests -- 98.2%
APPAREL -- 3.9%
Quiksilver, Inc*.................... 45,200 $ 1,356,000
-----------
AUTOMOTIVE -- 4.9%
Simpson Industries.................. 74,900 $ 725,594
Thor Industries, Inc................ 38,100 971,550
-----------
$ 1,697,144
-----------
CHEMICALS -- 5.6%
AMCOL Int'l. Corp................... 76,200 $ 752,475
Learonal, Inc....................... 34,300 1,161,913
-----------
$ 1,914,388
-----------
CONSTRUCTION -- 5.8%
Patrick Industries.................. 55,200 $ 848,700
Universal Forest Pr................. 56,400 1,131,525
-----------
$ 1,980,225
-----------
DRUGS, COSMETICS & HEALTHCARE -- 9.5%
Arrow International Inc............. 12,000 $ 376,500
Empi, Inc*.......................... 65,900 1,647,500
Herbalife International Cl. A....... 35,000 498,750
Respironics, Inc*................... 36,400 729,139
-----------
$ 3,251,889
-----------
ELECTRICAL -- 3.1%
C&D Technology Inc.................. 38,600 $ 1,061,500
-----------
ELECTRONICS -- 2.5%
Technitrol, Inc..................... 26,800 $ 854,250
-----------
FINANCIAL -- 7.7%
Centura Banks Inc................... 13,400 $ 996,625
One Valley Bancorp.................. 22,200 729,825
Raymond James Financial Corp........ 42,900 906,262
-----------
$ 2,632,712
-----------
MACHINERY & EQUIPMENT -- 2.8%
CLARCOR Inc......................... 48,600 $ 972,000
-----------
METAL PRODUCERS -- 2.5%
Imco Recycling Inc.................. 56,700 $ 875,306
-----------
METAL PRODUCTS MANUFACTURERS -- 2.6%
Regal Beloit Corp................... 38,200 $ 878,600
-----------
PRINTING & PUBLISHING -- 5.5%
Bowne & Co.......................... 27,500 $ 491,562
Merrill Corp........................ 27,100 523,369
Standard Register................... 27,800 860,063
-----------
$ 1,874,994
-----------
RECREATION -- 8.8%
Arctic Cat, Inc..................... 104,200 $ 1,061,536
Buffetts Inc.*...................... 74,700 891,731
Sonic Corp.*........................ 43,050 1,070,869
-----------
$ 3,024,136
-----------
RETAILERS -- 9.1%
The Buckle Inc...................... 42,000 $ 1,008,000
Dress Barn Inc*..................... 64,900 985,669
Ruddick Corp........................ 49,100 1,129,300
-----------
$ 3,122,969
-----------
<PAGE>
MISCELLANEOUS -- 23.9%
Bush Industries Cl. A............... 56,800 $ 706,450
Caci International, Inc............. 47,300 798,188
Franklin Covey Co*.................. 47,200 790,600
Gallagher (Arthur J.)............... 23,600 1,041,350
Lawson Prods. Inc................... 33,500 770,500
Myers Industries.................... 35,950 1,029,069
TBC Corp.*.......................... 122,000 869,250
Tetra Tech Inc.*.................... 50,375 1,363,273
World Fuel Services Corp............ 76,400 821,300
-----------
$ 8,189,980
-----------
Total equity interests -- 98.2%
(identified cost, $32,255,483) $ 33,686,094
-----------
Reserve Funds -- 3.1%
Face Amount
------------
American Express Corp., 4.702%, 1/4/99
(at amortized cost).............$1,050,000 $ 1,050,000
-----------
Total INVESTMENTS -- 101.3%
(identified cost, $33,305,483) $ 34,736,094
OTHER ASSETS,
LESS LIABILITIES -- (1.3%) (432,607)
-----------
NET ASSETS -- 100.0% $ 34,303,487
============
* Non-income-producing security.
See notes to financial statements
<PAGE>
INTERNATIONAL BLUE CHIP EQUITIES PORTFOLIO (WIBC)
PORTFOLIO OF INVESTMENTS
December 31, 1998
================================================================================
Shares Value
------ ------
Equity Interests -- 96.6%
ARGENTINA -- 0.9%
Telecom Argentina Stet Ord.......... 32,800 $ 902,000
YPF Sociedad Anonima................ 37,800 1,056,038
-----------
$ 1,958,038
-----------
AUSTRALIA -- 2.4%
Australian Gas & Light Co........... 388,780 $ 2,798,954
Lend Lease Corp. Ltd................ 165,512 2,230,274
-----------
$ 5,029,228
-----------
AUSTRIA -- 0.4%
Bank Austria AG..................... 16,200 $ 823,151
-----------
BRAZIL -- 0.7%
Embratel Partipacoes................ 21,400 $ 298,263
Telecelular Sul Particip............ 2,140 37,316
Telecentro Sul Participa............ 4,280 178,958
Telenorte Leste Participa........... 21,400 266,163
Telesp Celular Participa............ 8,560 149,800
Telesp Participacoes SA ADR......... 21,400 473,475
Telesudeste Celular Part............ 4,280 88,543
-----------
$ 1,492,518
-----------
CANADA -- 6.4%
Bombardier Inc. Class B............. 178,700 $ 2,559,609
Loblaw Companies Ltd................ 105,100 2,559,174
Magna Int'l. Inc. Cl. A............. 35,490 2,204,344
Power Financial Corp................ 126,600 2,802,456
Teleglobe Inc....................... 97,500 3,491,339
-----------
$ 13,616,922
-----------
DENMARK -- 2.2%
Coloplast B A/S..................... 17,100 $ 2,031,822
Novo-Nordisk A/S.................... 19,300 2,547,354
-----------
$ 4,579,176
-----------
FINLAND -- 1.8%
Finnlines Oy........................ 21,600 $ 923,484
Nokia Oy a Shares................... 24,000 2,918,248
-----------
$ 3,841,732
-----------
FRANCE -- 13.1%
Alcatel............................. 13,500 $ 1,649,518
Axa Company FRF60................... 21,900 3,168,810
Carrefour Supermarche............... 4,300 3,240,747
Essilor International............... 5,700 2,240,086
L'Air Liquide SA.................... 6,778 1,241,059
LeGrand SA.......................... 9,900 2,619,132
Michelin B. French Reg. Shares...... 43,700 1,744,721
Pinault-Printemps Redoute SA........ 12,600 2,403,859
Promodes............................ 5,400 3,920,257
Sagem SA............................ 3,420 2,260,450
Technip............................. 11,130 1,045,798
TV Francaise........................ 12,700 2,257,324
-----------
$ 27,791,761
-----------
GERMANY -- 5.7%
BASF AG............................. 58,400 $ 2,226,763
Bayerische Motoren Werke AG......... 4,040 3,099,354
Gea Pref. Shares.................... 62,000 1,486,811
Gehe AG............................. 42,440 2,926,019
Lufthansa AG........................ 104,800 2,312,134
-----------
$ 12,051,081
-----------
HONG KONG -- 1.3%
HSBC Holdings PLC................... 26,000 $ 647,735
Henderson Land Development.......... 133,000 688,434
Johnson Electric Holdings Ltd....... 538,000 1,381,980
-----------
$ 2,718,149
-----------
IRELAND -- 1.9%
Bank of Ireland..................... 78,994 $ 1,731,706
CRH PLC............................. 85,600 1,453,204
Greencore PLC....................... 50,000 225,692
Waterford Wedgewood - Uni........... 780,000 634,261
-----------
$ 4,044,863
-----------
ITALY -- 6.5%
Alleanza Assicurazioni SPA.......... 178,000 $ 2,519,368
Assicurazione Generali Itl.......... 80,000 3,341,501
Benetton Group......................1,370,000 2,773,172
Eni SPA............................. 383,000 2,515,002
Telecom Italia Mobile............... 360,000 2,659,249
-----------
$ 13,808,292
-----------
<PAGE>
JAPAN -- 9.9%
Bridgestone Corporation............. 103,000 $ 2,327,094
Canon Inc........................... 79,000 1,680,481
Fuji Photo Film..................... 54,000 1,997,710
Honda Motor Co., Ltd................ 65,000 2,124,108
Hoya Corp........................... 53,000 2,567,603
Nintendo Corp. Ltd.................. 22,000 2,112,217
Sony Corp........................... 23,000 1,667,313
TDK Corp............................ 26,000 2,365,718
Toyota Motor Co..................... 77,000 2,082,181
York-Benimaru Co. Ltd............... 69,000 2,181,890
-----------
$ 21,106,315
-----------
MEXICO -- 2.6%
Cemex S.A........................... 258,000 $ 556,113
Cifra S.A........................... 669,740 811,396
Grupo Carso S.A. de C.V............ 283,000 960,000
Grupo Industrial Saltillo A......... 150,000 374,054
Grupo Industrial Maseca-B........... 907,000 732,559
Organizacion Soriana SA-B........... 325,000 1,049,975
Telefonos de Mexico................. 21,400 1,041,913
-----------
$ 5,526,010
-----------
NETHERLANDS -- 14.2%
Abn Amro Holdings................... 101,061 $ 2,122,566
Aegon NV............................ 28,345 3,475,492
Cap Gemini.......................... 31,100 2,166,268
CSM N.V. Cert....................... 46,299 2,668,587
Fortis Amev NV...................... 37,000 3,061,201
Getronics N.V....................... 31,925 1,578,681
Hagemeyer N.V....................... 48,023 1,751,676
ING Groep N.V....................... 50,786 3,091,932
Internatio-Muller NV................ 36,400 899,984
Numico NV........................... 73,071 3,477,351
Stork N.V........................... 32,717 746,296
TNT Post Group*..................... 59,185 1,903,915
Unilever N.V........................ 25,800 2,201,787
Verenigde Nederlandse............... 26,000 978,784
-----------
$ 30,124,520
-----------
PORTUGAL-- 0.8%
Banco Espirito Santo - Reg.......... 31,867 $ 987,129
Portugal Telecom S.A. ADR........... 17,000 758,625
-----------
$ 1,745,754
-----------
SINGAPORE -- 1.1%
City Developments................... 150,000 $ 649,606
Overseas Chinese Bkng Corp.......... 128,000 868,322
United Overseas Bank-Foreign........ 128,000 821,805
-----------
$ 2,339,733
-----------
SOUTH AFRICA -- 0.9%
Sasol Beperk Limited................ 87,500 $ 330,525
South African Breweries LT.......... 46,526 783,563
Tiger Oats Limited.................. 82,350 810,882
-----------
$ 1,924,970
-----------
SPAIN -- 6.7%
Banco Bilbao Vizcaya SA............. 147,900 $ 2,317,937
Bankinter - Banco Interc Esp........ 72,000 2,652,391
Endesa S.A.......................... 82,400 2,182,320
Gas Natural SDG S.A................. 27,000 2,938,297
Repsol S.A.......................... 55,740 2,972,119
Telefonica.......................... 27,500 1,222,265
Telefonica de Espana................ 27,500 24,407
-----------
$ 14,309,736
-----------
SWEDEN -- 1.4%
Ericsson AB B Free.................. 91,300 $ 2,168,793
Svedala Industri AB-Free............ 53,700 779,913
-----------
$ 2,948,706
-----------
SWITZERLAND -- 6.3%
Alusuisse-Lonza Group Ltd........... 2,450 $ 2,852,361
Nestle SA ADR....................... 20,600 2,242,261
Novartis AG-Reg..................... 1,300 2,554,027
Sch. Rueckversicherungs-Ges......... 1,150 2,996,544
The Swatch Group AG................. 17,600 2,634,941
-----------
$ 13,280,134
-----------
UNITED KINGDOM -- 9.4%
Abbey National...................... 97,000 $ 2,071,703
Bodycote International PLC.......... 72,700 1,004,375
Cable & Wireless PLC ADR........... 84,300 3,098,025
Kingfisher PLC...................... 259,000 2,795,917
Kwik-Fit Holdings PLC............... 315,100 2,517,804
Siebe PLC........................... 543,888 2,139,120
<PAGE>
UNITED KINGDOM - continued
Tomkins PLC......................... 449,509 2,114,797
Vodafone Group PLC.................. 158,031 2,559,584
Wolseley PLC........................ 254,394 1,604,234
-----------
$ 19,905,559
-----------
TOTAL EQUITY INTERESTS - 96.6%
(identified cost, $163,181,603) $204,966,348
------------
Reserve Funds -- 3.2%
Face Amount
-------------
American Express Corp., 4.702%, 01/04/99
(at amortized cost).............$6,775,000 $ 6,775,000
-----------
Total INVESTMENTS -- 99.8%
(identified cost, $169,956,603) $211,741,348
OTHER ASSETS,
LESS LIABILITIES -- 0.2% 489,194
-----------
NET ASSETS -- 100% $212,230,542
============
* Non-income-producing security.
ADR: American Depository Receipts
See notes to financial statements
<PAGE>
U.S. GOVERNMENT NEAR TERM PORTFOLIO (WNTB)
PORTFOLIO OF INVESTMENTS
December 31, 1998
================================================================================
<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>
$ 850,000 Federal Home Loan Bank 5.120% 11/9/99 100.000 $ 850,000 5.12% 5.26%
1,950,000 Federal Home Loan Bank 4.860% 10/5/01 99.516 1,940,562 4.88% 4.89%
2,000,000 Federal Home Loan Bank 5.675% 8/18/03 102.125 2,042,500 5.56% 5.08%
3,500,000 Federal Home Loan Bank 5.125% 9/15/03 99.969 3,498,915 5.13% 5.08%
1,000,000 Federal Home Loan Bank 5.535% 11/10/03 98.875 988,750 5.60% 6.00%
500,000 Federal Home Loan Bank 5.375% 12/8/03 99.375 496,875 5.41% 5.54%
1,500,000 Federal Home Loan Bank 5.430% 6/8/01 100.047 1,500,705 5.43% -
1,000,000 FNMA 4.750% 11/14/03 98.719 987,190 4.81% 5.01%
1,500,000 FNMA 5.250% 11/19/01 100.031 1,500,465 5.25% 5.42%
1,500,000 FNMA 5.350% 10/27/03 98.641 1,479,615 5.42% 5.55%
1,000,000 FNMA 5.310% 9/15/00 100.016 1,000,160 5.31% -
1,925,000 FNMA 5.900% 7/9/03 101.375 1,951,469 5.82% 5.60%
1,300,000 FNMA 6.170% 8/5/03 100.062 1,300,806 6.17% 6.02%
1,500,000 FNMA 5.940% 8/18/03 100.531 1,507,965 5.91% 5.68%
1,500,000 FNMA 5.860% 8/20/03 101.297 1,519,455 5.78% 5.43%
1,500,000 FNMA 5.910% 8/25/03 100.719 1,510,785 5.87% 5.68%
2,100,000 U.S. Treasury Notes 7.000% 4/15/99 100.656 2,113,775 6.95% 4.65%
1,650,000 U.S. Treasury Notes 6.375% 7/15/99 100.922 1,665,213 6.32% 4.59%
2,000,000 U.S. Treasury Notes 8.000% 8/15/99 102.000 2,040,000 7.84% 4.70%
2,550,000 U.S. Treasury Notes 5.750% 9/30/99 100.797 2,570,324 5.70% 4.62%
2,000,000 U.S. Treasury Notes 7.875% 11/15/99 102.687 2,053,740 7.67% 4.69%
4,500,000 U.S. Treasury Notes 5.375% 1/31/00 100.750 4,533,750 5.33% 4.62%
2,000,000 U.S. Treasury Notes 5.875% 2/15/00 101.297 2,025,940 5.80% 4.66%
1,500,000 U.S. Treasury Notes 8.500% 2/15/00 104.109 1,561,635 8.16% 4.68%
11,100,000 U.S. Treasury Notes 7.125% 2/29/00 102.687 11,398,257 6.94% 4.69%
7,000,000 U.S. Treasury Notes 6.250% 5/31/00 102.141 7,149,870 6.12% 4.66%
8,000,000 U.S. Treasury Notes 6.000% 8/15/00 102.062 8,164,960 5.88% 4.64%
2,500,000 U.S. Treasury Notes 5.625% 11/30/00 101.781 2,544,525 5.53% 4.64%
1,200,000 U.S. Treasury Notes 5.500% 12/31/00 101.672 1,220,064 5.41% 4.61%
9,650,000 U.S. Treasury Notes 7.500% 11/15/01 107.531 10,376,742 6.97% 4.64%
3,100,000 U.S. Treasury Notes 6.250% 2/28/02 104.516 3,239,996 5.98% 4.68%
1,500,000 U.S. Treasury Notes 6.000% 7/31/02 104.219 1,563,285 5.76% 4.69%
-----------
Total Government Interests (identified cost, $86,739,160) - 95.7% $88,298,293
-----------
COMMERCIAL PAPER
$ 380,000 AMERICAN EXPRESS CORP 4.702% 1/4/99 $ 380,000 4.70% 4.70%
2,000,000 FNMA 5.500% 2/12/99 2,000,000 5.50% 5.69%
-----------
Total Commercial Paper - 2.6% $ 2,380,000
------------
Total Investments (identified cost, $89,119,160) -- 98.3% $90,678,293
Other Assets, Less Liabilities -- 1.7% 1,521,682
-----------
Net Assets -- 100.0% $92,199,975
============
Average Maturity -- 1.9 Years (1)
(1) Unaudited.
</TABLE>
<PAGE>
U.S. TREASURY PORTFOLIO (WUSTB)
PORTFOLIO OF INVESTMENTS
December 31, 1998
================================================================================
<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 $101.031 $ 5,556,705 5.82% 4.65%
2,700,000 U. S. Treasury Notes 5.375% 1/31/00 100.750 2,720,250 5.33% 4.62%
3,400,000 U. S. Treasury Notes 6.250% 5/31/00 102.141 3,472,794 6.12% 4.66%
4,450,000 U. S. Treasury Notes 5.250% 1/31/01 101.234 4,504,913 5.19% 4.61%
6,550,000 U. S. Treasury Notes 6.500% 5/15/05 109.594 7,178,407 5.93% 4.74%
7,050,000 U. S. Treasury Notes 6.500% 8/15/05 109.906 7,748,373 5.91% 4.73%
3,200,000 U. S. Treasury Notes 5.875% 11/15/05 106.672 3,413,504 5.51% 4.70%
3,600,000 U. S. Treasury Notes 5.625% 2/15/06 105.469 3,796,884 5.33% 4.66%
3,500,000 U. S. Treasury Notes 6.500% 10/15/06 110.922 3,882,270 5.86% 4.76%
1,500,000 U. S. Treasury Notes 6.250% 2/15/07 109.687 1,645,305 5.70% 4.76%
1,500,000 U. S. Treasury Notes 6.625% 5/15/07 112.453 1,686,795 5.89% 4.77%
3,000,000 U. S. Treasury Notes 6.125% 8/15/07 109.219 3,276,570 5.61% 4.78%
600,000 U.S Treasury Bonds 11.625% 11/15/04 134.687 808,122 8.63% 4.79%
1,000,000 U.S Treasury Bonds 10.000% 5/15/10 127.641 1,276,410 7.83% 6.51%
1,300,000 U.S Treasury Bonds 14.000% 11/15/11 158.422 2,059,486 8.84% 7.01%
6,100,000 U.S Treasury Bonds 7.250% 5/15/16 121.141 7,389,601 5.98% 5.36%
2,000,000 U.S Treasury Bonds 6.250% 8/15/23 111.766 2,235,320 5.59% 5.37%
2,200,000 U.S Treasury Bonds 6.000% 2/15/26 109.078 2,399,716 5.50% 5.34%
-----------
Total Investments (identified cost, $59,980,205) - 96.6% $ 65,051,425
Other Assets, less Liabilities - 3.4% 2,278,228
-----------
Net Assets - 100.0% $ 67,329,653
============
Average Maturity - 8.02 Years (1)
(1) Unaudited.
</TABLE>
See notes to financial statements
<PAGE>
CURRENT INCOME PORTFOLIO (WCIF)
PORTFOLIO OF INVESTMENTS
December 31, 1998
================================================================================
<TABLE>
<CAPTION>
Face Coupon Maturity Market Current
Amount Description Rate Date Price Value Yield(1)
- ----------------------------------------------------------------------------------------------------------------
GOVERNMENT INTERESTS - 95.3%
<S> <C> <C> <C> <C> <C> <C> <C>
$ 2,068 GNMA POOL # 000434 8.000% 4/15/01 $101.538 $ 2,101 7.88%
495 GNMA POOL # 000473 7.500% 4/15/01 101.402 502 7.40%
910,884 GNMA POOL # 000545 7.500% 12/20/22 102.812 936,498 7.29%
1,486,872 GNMA POOL # 000723 7.500% 1/20/23 102.812 1,528,684 7.29%
1,250,748 GNMA POOL # 001268 8.000% 7/20/23 103.843 1,298,815 7.70%
1,591 GNMA POOL # 001408 6.500% 3/15/02 100.364 1,598 6.48%
69,835 GNMA POOL # 001596 9.000% 4/20/21 106.687 74,505 8.44%
422,767 GNMA POOL # 001788 7.000% 7/20/24 101.875 430,695 6.87%
636,393 GNMA POOL # 002218 7.500% 5/20/26 102.749 653,888 7.30%
1,893,218 GNMA POOL # 002268 7.500% 8/20/26 102.718 1,944,676 7.30%
998,686 GNMA POOL # 002671 6.000% 11/20/28 98.625 984,954 6.08%
2,700,000 GNMA POOL # 002687 6.000% 12/20/28 98.625 2,662,875 6.08%
1,438 GNMA POOL # 003026 8.000% 1/15/04 102.662 1,477 7.79%
853 GNMA POOL # 003331 8.000% 1/15/04 102.662 876 7.79%
2,614 GNMA POOL # 004183 8.000% 7/15/04 103.151 2,696 7.76%
1,842 GNMA POOL # 004433 9.000% 11/15/04 104.718 1,929 8.59%
501,974 GNMA POOL # 004702 7.500% 2/15/26 103.093 517,500 7.27%
4,532 GNMA POOL # 005466 8.500% 3/15/05 104.448 4,734 8.14%
457 GNMA POOL # 005561 8.500% 4/15/05 103.806 475 8.19%
2,030,361 GNMA POOL # 005601 8.000% 11/15/26 103.937 2,110,297 7.70%
1,825 GNMA POOL # 005687 7.250% 2/15/05 102.782 1,876 7.05%
2,217 GNMA POOL # 005910 7.250% 2/15/05 102.782 2,280 7.05%
11,792 GNMA POOL # 007003 8.000% 7/15/05 103.598 12,216 7.72%
1,545 GNMA POOL # 007319 6.500% 10/15/04 100.583 1,554 6.46%
4,964 GNMA POOL # 009106 8.250% 5/15/06 104.773 5,202 7.87%
7,448 GNMA POOL # 009889 7.250% 2/15/06 103.268 7,692 7.02%
900 GNMA POOL # 011191 7.250% 4/15/06 103.460 931 7.01%
3,809 GNMA POOL # 012526 8.000% 11/15/06 104.005 3,962 7.69%
952,441 GNMA POOL # 044190 8.000% 12/15/26 103.937 989,939 7.70%
95,836 GNMA POOL # 151443 10.000% 3/15/16 108.085 103,585 9.25%
19,720 GNMA POOL # 153564 10.000% 4/15/16 108.085 21,315 9.25%
133,074 GNMA POOL # 172558 9.500% 8/15/16 107.437 142,971 8.84%
167,722 GNMA POOL # 176992 8.000% 11/15/16 104.906 175,951 7.63%
35,025 GNMA POOL # 177784 8.000% 10/15/16 104.906 36,744 7.63%
45,606 GNMA POOL # 180033 9.500% 9/15/16 107.437 48,998 8.84%
4,899 GNMA POOL # 188060 9.500% 10/15/16 107.437 5,264 8.84%
4,857 GNMA POOL # 190959 8.500% 2/15/17 106.831 5,189 7.96%
78,806 GNMA POOL # 192357 8.000% 4/15/17 104.825 82,609 7.63%
336,961 GNMA POOL # 194057 8.500% 4/15/17 106.831 359,979 7.96%
71,299 GNMA POOL # 194287 9.500% 3/15/17 107.412 76,584 8.84%
488,503 GNMA POOL # 194926 8.500% 2/15/17 106.831 521,873 7.96%
10,470 GNMA POOL # 196063 8.500% 3/15/17 106.831 11,185 7.96%
232,020 GNMA POOL # 203369 8.000% 12/15/16 104.906 243,403 7.63%
15,481 GNMA POOL # 206740 10.000% 10/15/17 108.343 16,774 9.23%
53,187 GNMA POOL # 206762 9.000% 4/15/21 107.405 57,126 8.38%
65,037 GNMA POOL # 207019 8.000% 3/15/17 104.825 68,176 7.63%
14,017 GNMA POOL # 208076 8.000% 4/15/17 104.825 14,694 7.63%
11,039 GNMA POOL # 210520 10.500% 8/15/17 109.631 12,103 9.58%
10,871 GNMA POOL # 210618 9.500% 4/15/17 107.412 11,677 8.84%
81,982 GNMA POOL # 211013 9.000% 1/15/20 107.468 88,105 8.37%
<PAGE>
$ 73,565 GNMA POOL # 211231 8.500% 5/15/17 $106.831 $ 78,591 7.96%
61,538 GNMA POOL # 212601 8.500% 6/15/17 106.831 65,742 7.96%
13,551 GNMA POOL # 218420 8.500% 11/15/21 106.531 14,437 7.98%
187,334 GNMA POOL # 219335 8.000% 5/15/17 104.825 196,373 7.63%
169,048 GNMA POOL # 220703 8.000% 5/15/17 104.825 177,205 7.63%
22,132 GNMA POOL # 220917 8.500% 4/15/17 106.831 23,645 7.96%
318,589 GNMA POOL # 222112 8.000% 1/15/22 104.219 332,030 7.68%
31,395 GNMA POOL # 223126 10.000% 8/15/17 108.343 34,015 9.23%
88,368 GNMA POOL # 223133 9.500% 7/15/17 107.412 94,919 8.84%
18,816 GNMA POOL # 223348 10.000% 8/15/18 108.411 20,400 9.22%
5,624 GNMA POOL # 223588 10.000% 12/15/18 108.183 6,085 9.24%
13,856 GNMA POOL # 224078 10.000% 7/15/18 108.411 15,022 9.22%
67,069 GNMA POOL # 228308 10.000% 1/15/19 108.343 72,665 9.23%
44,179 GNMA POOL # 228483 9.500% 9/15/19 107.362 47,432 8.85%
28,645 GNMA POOL # 230223 9.500% 4/15/18 107.387 30,762 8.85%
23,017 GNMA POOL # 235000 10.000% 1/15/18 108.343 24,938 9.23%
36,956 GNMA POOL # 245580 9.500% 7/15/18 107.387 39,686 8.85%
24,208 GNMA POOL # 247473 10.000% 9/15/18 108.085 26,165 9.25%
92,905 GNMA POOL # 247681 9.000% 11/15/19 107.530 99,902 8.37%
21,210 GNMA POOL # 247872 10.000% 9/15/18 108.411 22,995 9.22%
29,810 GNMA POOL # 250412 8.000% 3/15/18 104.743 31,224 7.64%
45,541 GNMA POOL # 251241 9.500% 6/15/18 107.387 48,905 8.85%
42,281 GNMA POOL # 258911 9.500% 9/15/18 107.387 45,405 8.85%
38,732 GNMA POOL # 260999 9.500% 9/15/18 107.387 41,594 8.85%
25,407 GNMA POOL # 263439 10.000% 2/15/19 108.468 27,559 9.22%
51,204 GNMA POOL # 265267 9.500% 8/15/20 107.337 54,961 8.85%
24,413 GNMA POOL # 266983 10.000% 2/15/19 108.468 26,481 9.22%
16,597 GNMA POOL # 273690 9.500% 8/15/19 107.362 17,820 8.85%
31,088 GNMA POOL # 274489 9.500% 12/15/19 107.362 33,377 8.85%
19,510 GNMA POOL # 275456 9.500% 8/15/19 107.362 20,947 8.85%
65,786 GNMA POOL # 275538 9.500% 1/15/20 107.337 70,613 8.85%
39,713 GNMA POOL # 277205 9.000% 12/15/19 107.530 42,704 8.37%
25,443 GNMA POOL # 285467 9.500% 7/15/20 107.337 27,311 8.85%
67,641 GNMA POOL # 285744 9.000% 5/15/20 107.468 72,693 8.37%
63,491 GNMA POOL # 286556 9.000% 3/15/20 107.468 68,233 8.37%
1,034 GNMA POOL # 287999 9.000% 9/15/20 107.468 1,112 8.37%
90,273 GNMA POOL # 289092 9.000% 4/15/20 107.468 97,015 8.37%
8,702 GNMA POOL # 289949 8.500% 7/15/21 106.531 9,271 7.98%
18,538 GNMA POOL # 290700 9.000% 8/15/20 107.468 19,923 8.37%
21,464 GNMA POOL # 291933 9.500% 7/15/20 107.337 23,039 8.85%
29,560 GNMA POOL # 293666 8.500% 6/15/21 106.531 31,492 7.98%
1,041 GNMA POOL # 294209 9.000% 7/15/21 107.405 1,119 8.38%
9,570 GNMA POOL # 297345 8.500% 8/15/20 106.606 10,203 7.97%
18,906 GNMA POOL # 301017 8.500% 6/15/21 106.531 20,141 7.98%
58,504 GNMA POOL # 301366 8.500% 6/15/21 106.531 62,326 7.98%
115,604 GNMA POOL # 302713 9.000% 2/15/21 107.405 124,165 8.38%
10,945 GNMA POOL # 302723 8.500% 5/15/21 106.531 11,660 7.98%
63,052 GNMA POOL # 302781 8.500% 6/15/21 106.531 67,171 7.98%
72,361 GNMA POOL # 302933 8.500% 6/15/21 106.531 77,087 7.98%
100,662 GNMA POOL # 304512 8.500% 5/15/21 106.531 107,237 7.98%
<PAGE>
133,494 GNMA POOL # 305091 9.000% 7/15/21 107.405 143,379 8.38%
$ 6,300 GNMA POOL # 306669 8.000% 7/15/21 $104.500 $ 6,584 7.66%
95,425 GNMA POOL # 306693 8.500% 9/15/21 106.531 101,658 7.98%
86,019 GNMA POOL # 308792 9.000% 7/15/21 107.405 92,390 8.38%
49,721 GNMA POOL # 311087 8.500% 7/15/21 106.531 52,968 7.98%
15,609 GNMA POOL # 314222 8.500% 4/15/22 106.343 16,600 7.99%
108,268 GNMA POOL # 314581 9.500% 10/15/21 107.312 116,185 8.85%
251,135 GNMA POOL # 315187 8.000% 6/15/22 104.219 261,731 7.68%
473,284 GNMA POOL # 315388 8.000% 2/15/22 104.219 493,252 7.68%
366,534 GNMA POOL # 315754 8.000% 1/15/22 104.219 381,999 7.68%
541,417 GNMA POOL # 316240 8.000% 1/15/22 104.219 564,260 7.68%
108,138 GNMA POOL # 316615 8.500% 11/15/21 106.531 115,201 7.98%
139,322 GNMA POOL # 317069 8.500% 12/15/21 106.531 148,422 7.98%
253,133 GNMA POOL # 317351 8.000% 5/15/22 104.219 263,813 7.68%
277,786 GNMA POOL # 317358 8.000% 5/15/22 104.219 289,507 7.68%
265,388 GNMA POOL # 318776 8.000% 2/15/22 104.219 276,585 7.68%
5,877 GNMA POOL # 318793 8.500% 2/15/22 106.343 6,251 7.99%
320,604 GNMA POOL # 319441 8.500% 4/15/22 106.343 340,940 7.99%
162,949 GNMA POOL # 321806 8.000% 5/15/22 104.219 169,824 7.68%
369,913 GNMA POOL # 321807 8.000% 5/15/22 104.219 385,520 7.68%
234,173 GNMA POOL # 321976 8.500% 1/15/22 106.343 249,027 7.99%
448,069 GNMA POOL # 323226 8.000% 6/15/22 104.219 466,973 7.68%
347,415 GNMA POOL # 323929 8.000% 2/15/22 104.219 362,072 7.68%
328,450 GNMA POOL # 325165 8.000% 6/15/22 104.219 342,308 7.68%
186,531 GNMA POOL # 325651 8.000% 6/15/22 104.219 194,401 7.68%
538,665 GNMA POOL # 329540 7.500% 8/15/22 103.187 555,833 7.27%
807,661 GNMA POOL # 329982 7.500% 2/15/23 103.187 833,402 7.27%
480,560 GNMA POOL # 331361 8.000% 11/15/22 104.219 500,835 7.68%
553,926 GNMA POOL # 335746 8.000% 10/15/22 104.219 577,297 7.68%
344,722 GNMA POOL # 335950 8.000% 10/15/22 104.219 359,266 7.68%
1,860,263 GNMA POOL # 348103 7.000% 6/15/23 102.343 1,903,849 6.84%
583,812 GNMA POOL # 348213 6.500% 8/15/23 101.093 590,194 6.43%
1,283,360 GNMA POOL # 350372 7.000% 4/15/23 102.343 1,313,429 6.84%
1,064,584 GNMA POOL # 350659 7.500% 6/15/23 103.187 1,098,513 7.27%
1,428,099 GNMA POOL # 350938 6.500% 8/15/23 101.093 1,443,709 6.43%
1,356,405 GNMA POOL # 352001 6.500% 12/15/23 101.093 1,371,231 6.43%
638,956 GNMA POOL # 362174 6.500% 1/15/24 101.062 645,742 6.43%
683,183 GNMA POOL # 362628 7.000% 8/15/23 102.343 699,191 6.84%
789,556 GNMA POOL # 363429 7.000% 8/15/23 102.343 808,056 6.84%
767,921 GNMA POOL # 367414 6.000% 11/15/23 99.312 762,638 6.04%
1,332,468 GNMA POOL # 367806 6.500% 9/15/23 101.093 1,347,033 6.43%
1,537,214 GNMA POOL # 368238 7.000% 12/15/23 102.343 1,573,231 6.84%
2,018,283 GNMA POOL # 368502 7.000% 2/15/24 102.343 2,065,572 6.84%
1,533,628 GNMA POOL # 370773 6.000% 11/15/23 99.312 1,523,077 6.04%
2,456,310 GNMA POOL # 372050 6.500% 2/15/24 101.062 2,482,397 6.43%
893,685 GNMA POOL # 372379 8.000% 10/15/26 103.937 928,870 7.70%
978,247 GNMA POOL # 372468 6.500% 12/15/27 101.000 988,030 6.44%
2,539,989 GNMA POOL # 376218 7.500% 8/15/25 103.093 2,618,551 7.27%
915,971 GNMA POOL # 376400 6.500% 2/15/24 101.062 925,699 6.43%
650,640 GNMA POOL # 398251 7.500% 9/15/25 103.093 670,765 7.27%
1,196,794 GNMA POOL # 405558 7.500% 1/15/26 103.093 1,233,812 7.27%
592,412 GNMA POOL # 414736 7.500% 11/15/25 103.093 610,736 7.27%
<PAGE>
$ 686,080 GNMA POOL # 417225 7.500% 1/15/26 $103.093 $ 707,301 7.27%
1,180,902 GNMA POOL # 417276 7.000% 2/15/26 102.312 1,208,205 6.84%
3,328,514 GNMA POOL # 420707 7.000% 2/15/26 102.312 3,405,470 6.84%
684,154 GNMA POOL # 421829 7.500% 4/15/26 103.093 705,315 7.27%
1,325,195 GNMA POOL # 422506 6.500% 3/15/26 101.031 1,338,858 6.43%
130,444 GNMA POOL # 423114 7.000% 9/15/27 102.312 133,460 6.84%
734,596 GNMA POOL # 424173 7.500% 3/15/26 103.093 757,318 7.27%
477,469 GNMA POOL # 427199 7.000% 12/15/27 102.312 488,509 6.84%
1,577,854 GNMA POOL # 430279 7.000% 10/15/27 102.312 1,614,335 6.84%
420,547 GNMA POOL # 431036 8.000% 7/15/26 103.937 437,105 7.70%
937,795 GNMA POOL # 436214 6.500% 2/15/13 101.875 955,379 6.38%
1,002,898 GNMA POOL # 436723 7.500% 11/15/26 103.093 1,033,918 7.27%
2,959,716 GNMA POOL # 436777 7.000% 4/15/27 102.312 3,028,145 6.84%
2,186,616 GNMA POOL # 440166 7.000% 2/15/27 102.312 2,237,171 6.84%
962,146 GNMA POOL # 442063 7.000% 10/15/26 102.312 984,391 6.84%
784,038 GNMA POOL # 442193 7.500% 12/15/26 103.093 808,289 7.27%
989,336 GNMA POOL # 442996 6.000% 6/15/13 100.718 996,440 5.96%
940,028 GNMA POOL # 446943 7.000% 4/15/27 102.312 961,762 6.84%
3,145,726 GNMA POOL # 448490 7.500% 3/15/27 103.093 3,243,024 7.27%
1,491,277 GNMA POOL # 449176 6.500% 7/15/28 101.000 1,506,191 6.44%
1,493,257 GNMA POOL # 457100 6.500% 11/15/28 101.000 1,508,190 6.44%
2,582,894 GNMA POOL # 458672 6.500% 1/15/28 101.000 2,608,723 6.44%
1,367,233 GNMA POOL # 458712 7.000% 11/15/27 102.312 1,398,844 6.84%
466,953 GNMA POOL # 460698 7.000% 10/15/27 102.312 477,749 6.84%
1,463,890 GNMA POOL # 460726 6.500% 12/15/27 101.000 1,478,529 6.44%
1,856,301 GNMA POOL # 462363 7.000% 11/15/27 102.312 1,899,219 6.84%
947,774 GNMA POOL # 462444 6.500% 12/15/27 101.000 957,253 6.44%
1,454,571 GNMA POOL # 462623 6.500% 3/15/28 101.000 1,469,118 6.44%
959,272 GNMA POOL # 468173 7.000% 8/15/28 102.312 981,451 6.84%
980,744 GNMA POOL # 469226 6.500% 3/15/28 101.000 990,552 6.44%
1,996,163 GNMA POOL # 469615 6.500% 10/15/28 101.000 2,016,125 6.44%
1,957,213 GNMA POOL # 472028 6.500% 5/15/28 101.000 1,976,786 6.44%
1,491,576 GNMA POOL # 480030 6.500% 6/15/28 101.000 1,506,492 6.44%
1,981,216 GNMA POOL # 484195 6.500% 8/15/28 101.000 2,001,029 6.44%
1,010,000 GNMA POOL # 488924 6.500% 11/15/28 101.000 1,020,100 6.44%
2,013,342 GNMA POOL # 780429 7.500% 9/15/26 103.093 2,075,614 7.27%
832,487 GNMA POOL # 780518 7.000% 6/15/26 102.343 851,992 6.84%
1,367,217 GNMA POOL # 410915 6.500% 2/15/26 101.031 1,381,312 6.43%
-------------
Total Government Interests (identified cost, $106,285,436) - 95.3% $108,428,001
COMMERCIAL PAPER - 4.1%
$ 4,630,000 AMERICAN EXPRESS CORP 4.702% 1/04/99 4,630,000
-----------
Total Investments (identified cost $110,915,436) - 99.4% $113,058,001
Other Assets, less Liabilities - 0.6% 648,751
-----------
Net Assets - 100.0% $113,706,752
============
(1) Unaudited.
See notes to financial statements
</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
Dorcas R. Hardy, 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.
