THE WRIGHT MANAGED BLUE CHIP INVESTMENT FUNDS
SEMI-ANNUAL REPORT
JUNE 30 , 1999
THE WRIGHT MANAGED EQUITY TRUST
o Wright Selected Blue Chip Equities Fund
o Wright Junior Blue Chip Equities Fund
o Wright Major Blue Chip Equities Fund
o Wright International Blue Chip Equities Fund
THE WRIGHT MANAGED INCOME TRUST
o Wright U.S. Treasury Money Market Fund
o Wright U.S. Government Near Term Fund
o Wright U.S. Treasury Fund
o Wright Total Return Bond Fund
o Wright Current Income Fund
THE WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
<PAGE>
THE WRIGHT MANAGED BLUE CHIP INVESTMENT FUNDS
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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
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Investment Objectives..................................inside front cover
Letter to Shareholders.................................................2
Management Discussion..................................................3
Dividend Distributions and Investment Return...........................8
FINANCIAL STATEMENTS
THE WRIGHT MANAGED EQUITY TRUST
Wright Selected Blue Chip Equities Fund......................14
Wright Junior Blue Chip Equities Fund........................16
Wright Major Blue Chip Equities Fund.........................18
Wright International Blue Chip Equities Fund.................20
Financial Highlights.........................................22
Notes to Financial Statements................................27
THE WRIGHT MANAGED INCOME TRUST
Wright U.S. Treasury Fund Money Market Fund..................32
Wright U.S. Government Near Term Fund........................34
Wright U.S. Treasury Fund....................................36
Wright Total Return Bond Fund................................38
Wright Current Income Fund...................................40
Financial Highlights.........................................42
Notes to Financial Statements................................48
THE WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
Selected Blue Chip Equities Portfolio........................54
Junior Blue Chip Equities Portfolio..........................56
International Blue Chip Equities Portfolio...................58
U.S. Government Near Term Portfolio..........................60
U.S. Treasury Portfolio......................................62
Current Income Portfolio.....................................64
Supplementary Data...........................................66
Notes to Financial Statements................................69
PORTFOLIOS OF INVESTMENTS
Wright Major Blue Chip Equities Fund (WMBC)..................74
Wright Total Return Bond Fund (WTRB).........................76
Selected Blue Chip Equities Portfolio (SBCP).................78
Junior Blue Chip Equities Portfolio (JBCP)...................80
International Blue Chip Equities Portfolio (IBCP)............82
Wright U.S. Treasury Money Market Fund (WTMM)................85
U.S. Government Near Term Portfolio (NTBP)...................86
U.S. Treasury Portfolio (USTBP)..............................87
Current Income Portfolio (CIFP)..............................88
<PAGE>
LETTER TO SHAREHOLDERS
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July 1999
Dear Shareholders:
Investors spent much of the first half of 1999 worrying whether the Federal
Reserve would raise interest rates. On the final day of the half, the Fed
obliged, raising the federal funds rate 25 basis points to 5.0%. The rate was
not exactly a surprise; midway through the second quarter, Fed policy makers had
announced a shift to a monetary policy biased toward tightening. But the Fed did
surprise investors on June 30, when it returned its monetary policy stance back
to neutral, suggesting that maybe we won't need more tightening after all.
Needless to say, investors in stock and bond markets worldwide responded
positively to this news.
Long-term interest rates have climbed by over 100 basis points from last
October's lows. With signs of economic recovery appearing in Asia and Latin
America, the liquidity premium that investors paid for Treasuries during last
fall's crisis has narrowed, as one would expect. The bulk of the rise in bond
yields since last summer, however, has resulted from rising expectations of Fed
tightening. Ironically, although the Fed has raised rates only 25 basis points,
the entire Treasury yield curve is 25-50 basis points above the more normal
levels that prevailed before the arrival of last summer's global financial
crisis and subsequent Fed easing.
For investors willing to look beyond the current uncertainty about the
Fed's interest rate policy, the yields available in the U.S. bond market today
are quite attractive - particularly if we are right about inflation staying low.
The U.S. economy was robust as the first half was coming to an end, but
inflation pressures remain modest thanks to strong growth in productivity, ample
global capacity and competitive markets. Corporate profits were at a record
level in the first quarter of 1999, and this stronger trend is persisting in the
second quarter. This is positive for the stock market, as is the improvement in
market breadth seen since March. In June, there were signs that investors were
starting to nibble at the big technology stocks that sold off in April and May;
smaller stocks have for the most part maintained their momentum. The speculative
fever in Internet stocks, which are down an average of 25% from their highs,
appears to have broken.
The countdown to Y2K is now at six months, and Wright has essentially
completed the migration to Y2K-compliant portfolio accounting and client
interface systems. We are on schedule to a summer completion for the transition
of our investment information systems from mainframe to a PC-based network.
Wright securities analysts continue to monitor the Y2K compliance of companies
on the Approved Wright Investment List. In the end, we believe that diversified
portfolios of high-quality securities provide the best protection against
short-run Y2K problems for any individual security.
The global economic environment has improved in 1999, and while higher
interest rates will probably bring some slowing in the U.S. as we draw near to
Y2K, we expect growth to continue at a respectable rate. Add to this our
forecast of low inflation and an improved bond market, and the result is a
generally favorable environment for equities. Still, we doubt that equity
investors can finesse away the issue of valuation ad infinitum. In other words,
more modest returns to stocks should be expected going forward.
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 following
paragraphs discuss the various economic, political and market factors affecting
the investment performance of the Wright Equity and Fixed-Income Funds during
the first half of 1999 and prospects for the period ahead.
Sincerely,
/s/Peter M. Donovan
Peter M. Donovan
President
<PAGE>
MANAGEMENT DISCUSSION
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EQUITY FUNDS
Considering the rise in interest rates and some serious profit taking in
Internet issues, U.S. stocks performed quite well during the first half of 1999.
A spurt early in the second quarter taking the market to new peaks was followed
by a period in which little upward progress was made. Investors fretted about
rising interest rates, higher inflation, and a possible tightening by the Fed.
On the last day of June, when the Fed raised rates 25 basis points (but also
shifted monetary policy into neutral), stocks rallied on relief that the action
wasn't more extreme. For the first half, stocks in the Americas and in the
Pacific generally performed strongly, while Europe's gains were relatively
modest.
The second quarter saw the start of a correction in some of the stock
market imbalances that had developed over the previous year. For most of 1998
and the first quarter of 1999, the market was dominated by a few large
technology stocks, especially Internet-related issues. In the second quarter,
however, the earnings prospects of cyclical stocks improved on evidence that the
U.S. economy remained on solid ground, while many high-P/E growth stocks were
done in by rising interest rates. Investors took profits in some of the
high-priced stocks in the Internet, health care and consumer staples sectors.
The value half of the S&P 500 outperformed the growth half, while basic
materials and capital goods stocks outperformed technology in the quarter. The
small- and mid-cap sectors outdistanced large-cap stocks by 7%-8% for the
quarter, their best relative performance in 18 months. The breadth of the market
advance improved over the course of the quarter.
The second quarter's market flip-flop is a hopeful sign that fundamentals
still matter. As the third quarter got underway, at first it seemed that the
market was trying to reestablish tech stocks as the market leaders, but this was
followed by another bout of profit taking in the sector. Market leadership is
shifting from day to day. WIS is hopeful that the better sense of value that
returned to the market in the second quarter will win out; this, along with
improvement in market breadth, would be a good sign for the long-term survival
of the bull market.
Economic fundamentals are positive for stocks. There is no evidence that
the U.S. expansion will falter (barring excessive tightening by the Fed, which
we believe is unlikely), and profit prospects are improving. Nevertheless, the
fact that the market is at a near record P/E even though bond yields are up some
100 basis points from last fall's lows points up the market's risk. If a
correction does develop, most affected will be the overvalued favorites that
have dominated the market for the last 18 months. Many lower-profile,
high-quality stocks are priced at levels that still offer attractive investment
returns.
<TABLE>
<CAPTION>
1999 1999 1998 1997 1996 1995 1994 1993 1992 1991
Total Return Q2 6 Mos. Year Year Year Year Year Year Year Year
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<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Selected Blue Chips (WSBC) 13.9% 6.0% 0.1% 32.7% 18.6% 30.3% -3.5% 2.1% 4.7% 36.0%
Major Blue Chips (WMBC) 10.3% 13.8% 20.4% 33.9% 17.6% 29.0% -0.7% 1.0% 8.0% 38.9%
Junior Blue Chips (WJBC) 15.7% 1.7% -4.9% 28.9% 17.5% 20.5% -2.8% 7.9% 3.3% 37.0%
Int'l Blue Chips (WIBC)
Standard Shares 4.6% 0.6% 6.1% 1.5% 20.7% 13.6% -1.6% 28.2% -3.9% 17.2%
Institutional Shares 4.7% 0.7% 7.5% -6.4%(*) - - - - - -
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(*): For the period from July 7, 1997 (inception of offering of institutional
shares) to December 31, 1997.
</TABLE>
WRIGHT SELECTED BLUE CHIP EQUITIES FUND
After a tough first quarter for all but a handful of big stocks, the market
backed away a bit from big-cap stocks and showed renewed appreciation of the
value in the rest of the market. This worked to the benefit of the Wright
Selected Blue Chip Fund (WSBC) during the second quarter. For the April-June
period, the WSBC's mid-cap orientation helped the fund return 13.9%. That was
almost double the 7.0% returned by both the S&P 500 and the Lipper equity fund
average, but slightly behind the 14.1% return of the S&P MidCap 400. For the
first half of 1999, the Selected Blue Chips returned 6.0%, compared to 12.4% for
the S&P 500, 6.9% for the S&P MidCaps and 11.7% for the Lipper average.
<PAGE>
Compared to the S&P 500, the WSBC Fund's second-quarter performance
benefited from its lower weighting in big-cap, high-P/E stocks and health care
issues, as well as an overweighting in capital goods stocks, which performed
well. Relative to the S&P MidCap 400, the WSBC Fund's performance was reduced by
its underweighting in basic materials stocks and mid-cap tech issues; again it
was aided by an overweighting in the capital goods sector. Above-average
appreciation by a number of high quality, reasonably priced stocks (e.g.,
Ingersoll-Rand, Leggett & Platt, USFreightways) also boosted the return of the
WSBC Fund for the quarter.
If the market continues to turn away from favoring size for its own sake,
the Wright Selected Blue Chip Fund has the potential to gain more ground on the
S&P 500. Despite their excellent appreciation in the second quarter, the issues
in the WSBC Fund had an average P/E of 19 at June 30, compared to 28 for the S&P
MidCaps and 34 for the S&P 500.
WRIGHT JUNIOR BLUE CHIP EQUITIES FUND
The Wright Junior Blue Chip Fund (WJBC) benefited from the resurgence of
small stocks in the second quarter, returning 15.7%, slightly ahead of the
Russell 2000 (15.5%) and the S&P SmallCap 600 (15.4%). Because of the WJBC
Fund's disappointing performance in the first quarter, when a few big-cap stocks
dominated the market, the fund's return for the first half of 1999 was 1.7%,
compared to 9.2% for the Russell 2000 and 5.0% for the S&P SmallCaps.
During the second quarter, the WJBC Fund benefited from strong price gains
in some of its more cyclical holdings: Imco Recycling (basic materials); AMCOL
International and JLG Industries (capital goods); Buckle, Inc. and Thor
Industries (consumer cyclicals). An underweighting in health-care stocks also
was a positive factor, while underweight positions in technology and energy
issues detracted from the fund's second-quarter return. As long as the stock
market does not return to the dangerously narrow focus on big-cap issues that
was evident prior to the second quarter, the WJBC Fund is well positioned to
offer superior investment returns. The stocks in the fund have a P/E multiple of
15 times earnings, which compares quite favorably with the 27 times of the S&P
SmallCap 600.
WRIGHT MAJOR BLUE CHIP EQUITIES FUND
The Wright Major Blue Chip Fund (WMBC) had a 10.3% return in the second
quarter. The WMBC Fund outperformed the S&P 500 and the Lipper equity growth
fund average, which both returned about 7% in the quarter. For the first half of
1999, the WMBC Fund returned 13.8%, compared to 12.4% for the S&P 500 and 11.7%
for the Lipper average.
Although it is oriented toward bigger-cap issues, the WMBC Fund has a
lesser concentration in the high-priced mega-stocks (e.g., Microsoft and GE)
than the S&P 500, and that helped its performance in the second quarter. The
fund also benefited from overweight positions in such strong sectors as basic
materials and capital goods and an underweighting in health care. Among
individual holdings contributing to the fund's excess return in the second
quarter were Alcoa, Dana, and Eaton. Among technology holdings, IBM and Computer
Associates helped, while Gateway and EMC Corp. detracted from fund performance.
Even after its superior second-quarter showing, the WMBC Fund, with a P/E of 27,
offers better value than the S&P 500 (34).
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND
For the second quarter of 1999, foreign markets overall lagged U.S. stocks.
In dollar terms, European markets were virtually unchanged in the quarter; Asian
markets, on the other hand, returned more than 10%. For the April-June period,
the FT/S&P Actuaries World ex U.S. index returned 4.0% in dollars. The Wright
International Blue Chip Fund (WIBC) topped this with a 4.6% return. For the
first half of 1999, the WIBC Fund returned 0.6%, compared to 6.3% for the FT
World ex U.S. index.
<PAGE>
During the second quarter, the WIBC Fund benefited from a relatively large
exposure to the Mexican market, which returned almost 19% in dollars for the
period. Positions in some cyclical German issues (Heidelberger Zement, BASF) and
good results from holdings of French, Swiss, and Italian stocks boosted the
fund's return. Underweighting in Japan and Hong Kong, strong markets in the
second quarter, and in oil-related stocks detracted from the WIBC Fund's
relative showing. The prospect of improving economic conditions in Europe and
Asia bodes well for the international stock markets in coming quarters, as does
the relatively attractive valuation of many stocks in Europe and the Pacific
region relative to U.S. equities. One caveat: a correction in the U.S. could
affect other markets.
FIXED-INCOME FUNDS
The first quarter's bear market decline in bonds continued into the second
quarter. Yields on 30-year Treasury bonds closed the second quarter just under
6%, up from 5.6% at the end of March and 5.1% at the start of the year. Lehman
Brothers' long-term Treasury bond index incurred a loss of 2.5% in the second
quarter; so far this year, long-term Treasuries are 6.6% in the red. With the
global economy apparently improving, corporate bonds did better than long-term
Treasuries; mortgage-backed securities also turned in smaller losses than
Treasuries.
On June 30, the FOMC announced a 25 basis-point increase in the fed funds
rate and a move to a neutral bias on monetary policy. The Fed's action sparked a
rally in bonds at quarter's end. In the weeks before, however, nervous investors
took the 30-year-Treasury yield as high as 6.17%; yields on Treasury issues with
maturities of seven years and longer got above 6%.
Before long, investors should recognize the good opportunity provided by 6%
bond yields. Unless the Fed tightens by considerably more than the 75 basis
points that it cut rates last fall, which is unlikely, Wright believes that bond
yields are likely to be a lot lower a year from now than they are today. Even if
yields just get back this year's rise over the next 12 months, returns on
ten-year bonds will approach double digits. That should compare favorably to
equity returns over the same period.
<TABLE>
<CAPTION>
1999 1999 1998 1997 1996 1995 1994 1993 1992 1991
Total Return Q2 6 Mos. Year Year Year Year Year Year Year Year
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<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
U.S. Treasury Money Mkt (WTMM) 1.0% 2.0% 4.7% 4.8% 4.9% 5.3% 3.6% 2.5% 3.3% n.a.
U.S. Gov. Near-Term Bonds (WNTB) 0.3% 0.6% 6.0% 5.9% 3.9% 11.9% -3.1% 8.0% 6.3% 13.1%
U.S. Treasury Bonds (WUSTB) -1.3% -3.4% 10.0% 9.1% -1.2% 28.2% -8.7% 15.9% 7.1% 17.6%
Total Return Bonds (WTRB) -1.9% -3.7% 9.6% 9.3% 0.9% 22.0% -6.6% 11.0% 7.1% 15.4%
Current Income (WCIF)
Standard Shares -1.2% -0.7% 6.5% 8.6% 4.3% 17.5% -3.3% 6.6% 6.7% 15.3%
Institutional Shares -1.1% -0.6% 6.6% 4.4%(*) - - - - - -
- --------------------------------------------------------------------------------------------------------------------------------
(*): For the period from July 7, 1997 (inception of offering of institutional
shares) to December 31, 1997.
</TABLE>
WRIGHT U.S. TREASURY MONEY MARKET FUND
The Wright U.S. Treasury Money Market Fund (WTMM) returned 1.0% in the
second quarter of 1999, compared to 1.1% for both the average Treasury money
market fund and 90-day Treasury bills. For 1999's first half, the WTMM Fund
returned 2.0%, slightly below the 2.1% return for the average Treasury money
market fund.
<PAGE>
Throughout the first half of 1999, the money markets were betting on the
Federal Reserve increasing interest rates. By June 30 (at which time the Fed did
raise the federal funds rate 25 basis points), 90-day Treasury bills had climbed
30 basis points to 4.78% coupon equivalent. Further Fed rate hikes are generally
expected during the second half, although Wright doubts that the fed fund rate
will get higher than 5.5% (from 5.0% currently). The U.S. economy began the
third quarter on a strong footing, but some slowing - and more evidence of low
inflation - are forecast for later this year and next, limiting the rise in
short-term interest rates.
WRIGHT U.S. GOVERNMENT NEAR TERM FUND
The Wright U.S. Government Near-Term Fund (WNTB) eked out a 0.3% return in
the second quarter of 1999, matching its first-quarter return. The
second-quarter result was in line with the Morningstar average of near-term
government funds but was below the 1.1% return earned on three-month Treasury
bills. That was principally due to short- to intermediate-term interest rates
increasing 30 to 50 basis points during the second quarter. Interest rates
climbed as a result of strong economic growth in the United States, firming in
economic activity outside the U.S. and fears that higher oil prices would lead
to a broader rise in inflation.
While the Federal Reserve raised benchmark short-term interest rates by
one-quarter percentage point on June 30, Wright does not believe that we are on
the threshold of a major uptrend in interest rates. If we are correct, there is
little downside risk in near-term government securities over the balance of this
year and into next year. At midyear 1999, the WNTB Fund's average maturity and
duration were both at 1.7 years, down from 1.8 years at March 31, close to the
Lehman Treasury 1-3 year benchmark. During the second half of 1999, the WNTB
Fund expects to increase its holdings of government agency issues to take
advantage of the attractive spreads that exist relative to Treasury securities.
WRIGHT U.S. TREASURY FUND
The Wright U.S. Treasury Fund (WUSTB), which invests exclusively in U.S.
Treasury securities, lost 1.3% in the second quarter of 1999; that was slightly
behind the 0.9% decline for the Lehman Treasury bond composite. At June 30, the
WUSTB had an average maturity of 8.7 years and a duration of 5.9 years (compared
to 9.1 and 5.5, respectively, for the Lehman benchmark). In this range of the
yield curve, yields rose about 55 basis points during the second quarter and
more than one percentage point since December 31. Compared to the U.S. bond
market in the aggregate, the WUSTB Fund was hurt in the quarter by not holding
spread products - i.e., agency and corporate issues - which posted narrower
losses than Treasury bonds.
For the first six months of 1999, WUSTB declined 3.4%, as compared to a
2.5% loss for the Lehman Treasury composite. The WUSTB Fund closed the second
quarter with a yield to maturity of 5.9%. Wright expects the next material move
in bond yields to be lower, resulting in better returns for intermediate- and
long-term Treasury bonds over the rest of 1999 and in 2000.
WRIGHT TOTAL RETURN BOND FUND
The Wright Total Return Bond Fund (WTRB) holds U.S. Treasury issues (28% of
assets at June 30), corporate bonds (39%), agencies (19%), and mortgage-backed
securities (13%). Although these latter sectors held up slightly better than
Treasuries in the second quarter, the WTRB Fund experienced a loss of 1.9% for
the period as a result of the fund's slightly longer-than-benchmark duration
(5.9 vs 5.7) and the fund's avoidance of lower-quality corporates, which have
rebounded this year. The Lehman government/corporate bond average lost 1.1%
during the quarter.
<PAGE>
For the first half of 1999, fear of Federal Reserve tightening - which was
realized at quarter end - detracted from the bond market's performance. The WTRB
Fund had a loss of 3.7% in the six months, as compared to a 2.3% decline in the
Lehman government/corporate composite. With the worst of the bond market's
problems now believed to be behind us, better returns are anticipated from the
U.S. bond market over the 12 months ahead.
WRIGHT CURRENT INCOME FUND
The Wright Current Income Fund (WCIF) lost 1.2% during the second quarter
of 1999. This compares with a loss of 1.0% estimated for the Morningstar
government mortgage fund average and a decline of 1.1% for the Lehman
Government/Corporate Bond Average. Mortgage-backed securities generally
outperformed Treasury securities in the second quarter, although by a smaller
margin than in the first. For the first six months of 1999, the WCIF Fund had a
0.7% decline, as compared with a 0.5% loss for the Morningstar government
mortgage fund average.
During the second quarter, as interest rates rose, the estimated duration
for the WCIF Fund extended out to 5.4 years from 4.8 years at March 31 and 3.9
years at the end of last year. In anticipation of mortgage rates going lower
over the coming 12-18 months, Wright expects to be a buyer of current coupon and
discount coupon securities during 1999's second half. The fund's indicated
annual dividend yield of 6.0% was roughly three times the rate of inflation.
The 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%
06/30/99 10970.80 5.97%
- --------------------------------------------------------------------------------
<PAGE>
DIVIDEND DISTRIBUTIONS AND INVESTMENT RETURN
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
N.A.V. Distri- Distri- 12 Month 5 Year 10 Year Cum.
Period Per bution bution Shares Invstmnt Invstmnt Invstmnt Invstmnt
Ending Share $ P/S in Shares Owned Value Return Return Return Return
(Annualized) (Annualized)(Annualized)
- ----------------------------------------------------------------------------------------------------------------------------------
THE EQUITY TRUST -- WRIGHT SELECTED BLUE CHIP EQUITIES FUND (WBC)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1/4/83 $10.00 100.00 $1,000.00
Dec.98 17.63 1.461 0.086861 404.37 7,129.11 0.14% 14.65% 13.24% 13.07%
Jan.99 17.24 404.37 6,971.41 -1.51% 13.99% 12.49% 12.84%
Feb.99 16.54 404.37 6,688.35 -11.97% 13.15% 12.10% 12.49%
Mar.99 16.39 0.020 0.001208 404.86 6,635.70 -15.88% 13.83% 11.82% 12.36%
Apr.99 18.04 404.86 7,303.72 -7.50% 16.03% 12.40% 12.96%
May 99 17.96 404.86 7,271.33 -3.98% 15.96% 11.85% 12.86%
Jun.99 18.64 0.020 0.001089 405.30 7,554.86 1.65% 17.25% 12.32% 13.05%
- -----------------------------------------------------------------------------------------------------------------------------
THE EQUITY TRUST -- WRIGHT JUNIOR BLUE CHIP EQUITIES FUND (WJBC)
1/15/85 $10.00 100.00 $1,000.00
Dec.98 9.92 0.045 0.004712 395.91 3,927.47 -4.90% 11.05% 10.30% 10.30%
Jan.99 9.53 395.91 3,773.06 -8.46% 9.82% 9.67% 9.98%
Feb.99 8.77 395.91 3,472.17 -20.55% 7.79% 8.75% 9.27%
Mar.99 8.72 395.91 3,452.37 -22.61% 8.50% 8.61% 9.17%
Apr.99 9.52 395.91 3,769.10 -14.60% 10.41% 9.13% 9.79%
May 99 9.68 395.91 3,832.45 -10.28% 11.36% 8.90% 9.86%
Jun.99 10.09 395.91 3,994.77 -3.91% 12.57% 9.42% 10.12%
- ---------------------------------------------------------------------------------------------------------------------------------
THE EQUITY TRUST -- WRIGHT MAJOR BLUE CHIP EQUITIES FUND (WMBC)
7/22/85 $10.00 100.00 $1,000.00
Dec.98 13.67 0.730 0.056068 502.64 6,871.06 20.43% 19.41% 15.96% 15.42%
Jan.99 14.17 502.64 7,122.38 24.11% 20.31% 15.82% 15.72%
Feb.99 13.90 502.64 6,986.67 12.79% 19.95% 15.73% 15.45%
Mar.99 14.09 0.015 0.001056 503.17 7,089.65 10.02% 21.26% 15.76% 15.48%
Apr.99 15.34 503.17 7,718.62 19.00% 23.36% 16.17% 16.10%
May 99 14.84 503.17 7,467.03 16.92% 22.20% 15.25% 15.72%
Jun.99 15.53 0.010 0.000653 503.50 7,819.32 20.37% 23.76% 15.92% 16.00%
- --------------------------------------------------------------------------------------------------------------------------------
<PAGE>
THE EQUITY TRUST -- WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC)
STANDARD SHARES
9/14/89 $10.00 100.00 $1,000.00
Dec.98 16.02 0.882 0.057609 127.40 2,041.02 6.14% 7.77% -- 7.98%
Jan.99 15.49 127.40 1,973.50 2.75% 6.06% -- 7.59%
Feb.99 15.13 127.40 1,927.63 -6.14% 6.05% -- 7.25%
Mar.99 15.12 0.287 0.018832 129.80 1,962.64 -8.68% 7.29% -- 7.39%
Apr.99 15.83 129.80 2,054.80 -4.81% 7.65% -- 7.84%
May 99 15.11 129.80 1,961.34 -8.99% 7.11% -- 7.25%
Jun.99 15.81 129.80 2,052.20 -2.15% 8.28% -- 7.68%
INSTITUTIONAL SHARES
7/07/97 $10.00 100.00 $1,000.00
Dec.98 8.75 0.962 0.115072 115.06 1,006.80 7.54% -- -- 0.46%
Jan.99 8.46 115.06 973.44 4.09% -- -- -1.79%
Feb.99 8.26 115.06 950.42 -5.04% -- -- -3.18%
Mar.99 8.13 0.287 0.035000 119.09 968.21 -7.56% -- -- -1.94%
Apr.99 8.52 119.09 1,014.65 -3.60% -- -- 0.84%
May 99 8.13 119.09 968.21 -7.83% -- -- -1.76%
Jun.99 8.51 119.09 1,013.46 -1.88% -- -- 0.71%
- --------------------------------------------------------------------------------------------------------------------------------
*: Investment return from the inception, July 7, 1997 to December 31, 1998.
</TABLE>
<PAGE>
THE INCOME TRUST -- WRIGHT U.S. TREASURY MONEY MARKET FUND (WTMM)
<TABLE>
<CAPTION>
MONTHLY CUMULATIVE ANNUALIZED INVESTMENT RETURN
MONTH NET INCOME RETURN ______________________________________
ENDING PER SHARE PER SHARE (a) 1 Month 3 Month Cumulative
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$1,000.00
Jan. 31 $0.003536 1,003.54 4.16% -- 4.16%
Feb. 28 0.003110 1,006.66 4.05% - 4.12%
Mar. 31 0.003432 1,010.11 4.04% 4.10% 4.10%
Apr. 30 0.003310 1,013.45 4.03% 4.05% 4.09%
May 31 0.003421 1,016.92 4.03% 4.05% 4.09%
Jun. 30 0.003361 1,020.34 4.09% 4.06% 4.10%
----------
Total $0.020170
(a): Assumes reinvestment of monthly dividends.
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
N.A.V. Distri- Distri- 12 Month 5 Year 10 Year Cum.
Period Per bution bution Shares Invstmnt Invstmnt Invstmnt Invstmnt
Ending Share $ P/S in Shares Owned Value Return Return Return Return
(Annualized) (Annualized)(Annualized)
- ----------------------------------------------------------------------------------------------------------------------------------
THE INCOME TRUST -- WRIGHT U.S. GOVERNMENT NEAR TERM FUND (WNTB)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
7/25/83 $10.00 100.000 $1,000.00
12/98 10.27 0.046913 0.004568 314.988 3,234.93 5.98% 4.82% 7.04% 7.90%
1/99 10.27 0.044199 0.004304 316.344 3,248.85 5.42% 4.70% 7.00% 7.93%
2/99 10.15 0.041567 0.004095 317.639 3,224.04 4.67% 4.91% 6.95% 7.83%
3/99 10.17 0.044835 0.004409 319.040 3,244.63 4.93% 5.44% 6.99% 7.84%
4/99 10.15 0.043544 0.004290 320.408 3,252.14 4.79% 5.68% 6.83% 7.81%
5/99 10.09 0.043802 0.004341 321.799 3,246.95 4.13% 5.66% 6.63% 7.76%
6/99 10.07 0.043491 0.004317 323.188 3,254.51 3.89% 5.70% 6.42% 7.73%
---------
Total $0.261438
- ------------------------------------------------------------------------------------------------------------------------------
THE INCOME TRUST -- WRIGHT U.S. TREASURY FUND (WUSTB)
7/25/83 $10.00 100.000 $1,000.00
12/98 14.40 0.227935 0.015710 318.612 4,588.01 9.95% 6.76% 9.60% 10.37%
1/99 14.41 0.059932 0.004159 319.937 4,610.29 8.62% 6.39% 9.47% 10.41%
2/99 13.93 0.055306 0.003970 321.207 4,474.42 5.98% 6.68% 9.33% 10.13%
3/99 13.87 0.061807 0.007989 323.773 4,490.73 6.19% 7.69% 9.27% 10.11%
4/99 13.85 0.058239 0.004205 325.134 4,503.11 6.08% 8.13% 9.04% 10.07%
5/99 13.62 0.060747 0.004460 326.585 4,448.08 3.79% 7.99% 8.55% 9.93%
6/99 13.51 0.058295 0.004314 327.993 4,431.19 2.21% 8.12% 8.03% 9.85%
---------
Total $0.354326
- ------------------------------------------------------------------------------------------------------------------------------
THE INCOME TRUST -- WRIGHT TOTAL RETURN BOND FUND (WTRB)
7/25/83 $10.00 100.000 $1,000.00
12/98 13.31 0.157365 0.011750 315.193 4,195.22 9.56% 6.81% 8.60% 9.80%
1/99 13.33 0.055357 0.004153 316.502 4,218.97 8.34% 6.41% 8.42% 9.77%
2/99 12.90 0.054122 0.004195 317.830 4,100.00 5.73% 6.44% 8.20% 9.52%
3/99 12.90 0.056371 0.004370 319.219 4,117.92 5.92% 7.24% 8.25% 9.50%
4/99 12.86 0.055900 0.004347 320.606 4,123.00 5.67% 7.55% 8.07% 9.45%
5/99 12.62 0.056805 0.004501 322.049 4,064.26 3.14% 7.29% 7.63% 9.30%
6/99 12.49 0.056525 0.004526 323.507 4,040.60 1.53% 7.26% 7.19% 9.21%
---------
Total $0.335080
<PAGE>
- ----------------------------------------------------------------------------------------------------------------------------------
THE INCOME TRUST -- WRIGHT CURRENT INCOME FUND (WCIF)
Standard Shares
4/14/87 $10.00 100.000 $1,000.00
12/98 10.66 $0.052419 0.004917 239.279 2,550.72 6.51% 6.51% 8.47% 8.32%
1/99 10.67 0.050818 0.004763 240.419 2,565.27 6.07% 6.44% 8.37% 8.37%
2/99 10.55 0.051224 0.004869 241.590 2,548.77 5.24% 6.51% 8.40% 8.25%
3/99 10.56 0.050289 0.004875 242.767 2,563.62 5.52% 7.32% 8.47% 8.25%
4/99 10.55 0.051483 0.004880 243.952 2,573.69 5.30% 7.58% 8.29% 8.22%
5/99 10.41 0.051117 0.004903 245.148 2,551.99 3.59% 7.38% 7.87% 8.09%
6/99 10.28 0.051295 0.004990 246.371 2,532.70 2.49% 7.34% 7.49% 7.96%
---------
Total $0.306226
- -------------------------------------------------------------------------------------------------------------------------------
Institutional Shares
7/07/97 $10.00 100.000 $1,000.00
12/98 10.15 $0.046702 0.004601 109.602 1,112.46 6.56% -- -- 7.43%
1/99 10.15 0.049065 0.004834 110.131 1,117.83 6.09% -- -- 7.77%
2/99 10.04 0.050181 0.004984 110.680 1,111.23 5.32% -- -- 6.93%
3/99 10.05 0.049801 0.005004 111.234 1,117.90 5.61% -- -- 6.98%
4/99 10.04 0.050410 0.005021 111.793 1,122.40 5.38% -- -- 6.88%
5/99 9.91 0.049903 0.005036 112.356 1,113.44 3.70% -- -- 6.09%
6/99 9.79 0.050043 0.005112 112.930 1,105.58 2.74% -- -- 5.42%
---------
Total $0.299403
</TABLE>
<PAGE>
WRIGHT MANAGED EQUITY TRUST
- -------------------------------------------------------------------------------
Wright Selected Blue Chip Equities Fund (WBC)
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1999 (Unaudited)
- -------------------------------------------------------------------------------
ASSETS:
Investments in portfolio, at value
(identified cost,$101,572,989)(Note 1A) $140,080,875
------------
Total investments, at value............. $140,080,875
Receivable from adviser................. 13,900
------------
Total assets.......................... $140,094,775
------------
LIABILITIES:
Payable for fund shares reacquired...... $ 262,153
Accrued expenses and other liabilities.. 17,186
------------
Total liabilities..................... $ 279,339
------------
NET ASSETS................................ $139,815,436
=============
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................... $ 79,071,037
Accumulated undistributed net realized gain
on investments (computed on the basis of
identified cost)....................... 21,313,519
Unrealized appreciation of investments
(computed on the basis of identified cost) 38,507,886
Undistributed net investment income..... 922,994
------------
Net assets applicable to outstanding shares $139,815,436
=============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING............................ 7,500,647
=============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST................. $18.64
=============
See notes to financial statements
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1999 (Unaudited)
- -------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1C):
Income -
Dividend income allocated from portfolio $ 1,264,124
Interest income allocated from portfolio 35,446
Expenses allocated from portfolio...... (710,079)
------------
Investment income..................... $ 589,491
------------
Expenses -
Administrator fee (Note 2)............. $ 13,259
Compensation of Trustees not affiliated with the
investment adviser or administrator... 1,607
Custodian fee (Note 1D)................ 17,922
Distribution expenses (Note 3)......... 207,501
Transfer and dividend disbursing agent fees 29,206
Legal services......................... 16,143
Registration costs .................... 11,802
Miscellaneous.......................... 8,808
------------
Total expenses........................ $ 306,248
------------
Deduct -
Preliminary reduction of distribution expenses
by principal underwriter (Note 3) .... $ 45,731
Preliminary allocation of expenses to adviser
(Note 2).............................. 13,900
------------
Total deductions...................... $ 59,631
------------
Net expenses........................ $ 246,617
------------
Net investment income............. $ 342,874
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investment transactions from
portfolio (identified cost basis)...... $ 21,681,441
Change in unrealized appreciation (depreciation)
of investments ........................ (17,105,508)
------------
Net realized and unrealized gain on
investments............................ $ 4,575,933
------------
Net increase in net assets from operations $ 4,918,807
=============
See notes to financial statements
<PAGE>
WRIGHT MANAGED EQUITY TRUST
- -------------------------------------------------------------------------------
Wright Selected Blue Chip Equities Fund (WBC)
<TABLE>
<CAPTION>
Six Months Ended Year Ended
STATEMENTS OF CHANGES IN NET ASSETS June 30, 1999 Dec. 31, 1998
- ---------------------------------------------------------------------------------------------------------------------------------
(Unaudited)
INCREASE (DECREASE) IN NET ASSETS:
From operations -
<S> <C> <C>
Net investment income...................................................... $ 342,874 $ 1,167,164
Net realized gain on investments........................................... 21,681,441 15,538,125
Change in unrealized depreciation of investments........................... (17,105,508) (20,336,710)
------------ ------------
Net increase (decrease) in net assets resulting from operations $ 4,918,807 $ (3,631,421)
------------ ------------
Undistributed net investment income included in price of shares sold and redeemed
(Note 1F).................................................................. $ - $ (14)
------------ ------------
Distributions to shareholders (Note 1G) -
From net investment income ................................................ $ (344,260) $ (1,166,044)
From net realized gain..................................................... (637) (16,414,262)
In excess of net realized gain............................................. - (845,717)
------------ ------------
Total distributions...................................................... $ (344,897) $(18,426,023)
------------ ------------
Net decrease in net assets from fund share transactions (Note 4) -........... $(85,723,041) $(16,388,843)
------------ ------------
Net decrease in net assets................................................... $(81,149,131) $(38,446,301)
NET ASSETS:
At beginning of period....................................................... 220,964,567 259,410,868
------------ ------------
At end of period............................................................. $139,815,436 $220,964,567
============== ==============
UNDISTRIBUTED NET INVESTMENT INCOME
INCLUDED IN NET ASSETS AT END OF PERIOD...................................... $ 922,994 $ 924,380
============== ==============
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT MANAGED EQUITY TRUST
- -------------------------------------------------------------------------------
Wright Junior Blue Chip Equities Fund (WJBC)
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1999 (Unaudited)
- ------------------------------------------------------------------------------
ASSETS:
Investments in portfolio, at value
(identified cost, $17,464,036 for WJBC)
(Note 1A)............................. $18,019,147
------------
Total investments, at value............. $18,019,147
Receivable from adviser................. 27,980
------------
Total assets.......................... $18,047,127
------------
LIABILITIES:
Payable for fund shares reacquired...... $ 4,539
Accrued expenses and other liabilities.. 9,771
------------
Total liabilities..................... $ 14,310
------------
NET ASSETS................................ $18,032,817
=============
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................... $18,135,548
Accumulated net realized loss on investments
(computed on the basis of identified cost) (291,390)
Unrealized appreciation of investments
(computed on the basis of identified cost) 555,111
Distributions in excess of net
investment income...................... (366,452)
------------
Net assets applicable to outstanding shares $18,032,817
=============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING............................ 1,786,563
=============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST................. $10.09
=============
See notes to financial statements
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1999 (Unaudited)
- -------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1C):
Income -
Dividend income allocated from portfolio $ 134,314
Interest income allocated from portfolio 6,724
Expenses allocated from portfolio...... (117,443)
------------
Investment income..................... $ 23,595
------------
Expenses -
Administrator fee (Note 2)............. $ 2,347
Compensation of Trustees not affiliated with the
investment adviser or administrator... 1,222
Custodian fee (Note 1D) ............... 11,715
Distribution expenses (Note 3)......... 21,727
Transfer and dividend disbursing agent fees 15,798
Printing............................... 1,287
Audit services......................... 6,075
Legal services......................... 2,243
Registration costs..................... 7,470
------------
Total expenses........................ $ 69,884
------------
Deduct -
Preliminary reduction of distribution expenses
by principal underwriter (Note 3) .... $ 21,727
Preliminary allocation of expenses to adviser
(Note 2).............................. 27,980
------------
Total deductions...................... $ 49,707
------------
Net expenses........................ $ 20,177
------------
Net investment income............. $ 3,418
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss on investment transactions from
portfolio (identified cost basis)...... $ (291,390)
Change in unrealized appreciation (depreciation)
of investments from portfolio ......... (875,499)
------------
Net realized and unrealized loss on
investments............................ $(1,166,889)
------------
Net decrease in net assets from
operations........................... $(1,163,471)
=============
See notes to financial statements
<PAGE>
Wright Managed Equity Trust
- -------------------------------------------------------------------------------
Wright Junior Blue Chip Equities Fund (WJBC)
<TABLE>
<CAPTION>
Six Months Ended Year Ended
STATEMENTS OF CHANGES IN NET ASSETS June 30, 1999 Dec. 31,1998
- -------------------------------------------------------------------------------------------------------------------------------
(Unaudited)
INCREASE (DECREASE) IN NET ASSETS:
From operations -
<S> <C> <C>
Net investment income...................................................... $ 3,418 $ 17,764
Net realized gain (loss) on investments.................................... (291,390) 154,875
Change in unrealized appreciation (depreciation) of investments............ (875,499) (2,056,707)
------------ ------------
Net decrease in net assets resulting from operations..................... $ (1,163,471) $ (1,884,068)
------------ ------------
Distributions to shareholders (Note 1G) -
From net realized gain..................................................... $ - $ (157,251)
------------ ------------
Net increase (decrease) in net assets from fund share transactions (Note 4) - $(15,320,371) $ 3,068,243
------------ ------------
Net increase (decrease) in net assets........................................ $(16,483,842) $ 1,026,924
NET ASSETS:
At beginning of period....................................................... 34,516,659 33,489,734
------------ ------------
At end of period............................................................. $ 18,032,817 $ 34,516,658
============== ==============
DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME
INCLUDED IN NET ASSETS AT END OF PERIOD...................................... $ (366,452) $ (369,870)
============== ==============
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT MANAGED EQUITY TRUST
- -------------------------------------------------------------------------------
Wright Major Blue Chip Equities Fund (WMBC)(+)
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1999 (Unaudited)
- -------------------------------------------------------------------------------
ASSETS:
Investments -
Identified cost....................... $ 88,787,751
Unrealized appreciation............... 21,062,870
------------
Total investments, at value (Note 1A)... $109,850,621
Cash.................................... 2,317
Receivable for fund shares sold......... 2,000
Dividend and interest receivable........ 86,066
------------
Total assets.......................... $109,941,004
------------
LIABILITIES:
Accrued expenses and other liabilities.. $ 20,448
Distribution fee payable................ 1,724
------------
Total liabilities..................... $ 22,172
------------
NET ASSETS................................ $109,918,832
=============
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................... $ 86,129,199
Accumulated undistributed net realized gain
on investments (computed on the basis
of identified cost).................... 2,941,159
Unrealized appreciation of investments
(computed on the basis of identified cost) 21,062,870
Distributions in excess of net
investment income...................... (214,396)
------------
Net assets applicable to outstanding shares $109,918,832
=============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING............................ 7,077,073
=============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST................. $15.53
=============
+ The Wright Major Blue Chip Equities Fund does not invest in a corresponding
master portfolio.
See notes to the financial statements
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1999 (Unaudited)
- -------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1C):
Income -
Dividend income........................ $ 541,313
Interest income........................ 84,391
------------
Investment income..................... $ 625,704
------------
Expenses -
Investment adviser fee (Note 2)........ $ 198,961
Administrator fee (Note 2)............. 93,631
Compensation of Trustees not affiliated with the
investment adviser or administrator... 1,697
Custodian fee (Note 1D)................ 34,949
Distribution expenses (Note 3)......... 109,306
Transfer and dividend disbursing agent fees 20,794
Printing............................... 1,233
Audit services......................... 25,203
Legal services......................... 6,443
Registration costs..................... 10,835
Miscellaneous.......................... 3,072
------------
Total expenses........................ $ 506,124
------------
Deduct -
Preliminary reduction of distribution expenses
by principal underwriter (Note 3) .... $ 44,735
Reduction of custodian fee (Note 1D)... 3,222
------------
Total deductions...................... $ 47,957
------------
Net expenses........................ $ 458,167
------------
Net investment income............. $ 167,537
------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investment transactions
(identified cost basis)................ $ 2,958,430
Change in unrealized appreciation of
investments............................ 9,126,705
------------
Net realized and unrealized gain
on investments......................... $12,085,135
------------
Net increase in net assets from operations $12,252,672
=============
See notes to financial statements
<PAGE>
WRIGHT MANAGED EQUITY TRUST
- -------------------------------------------------------------------------------
Wright Major Blue Chip Equities Fund(+)
<TABLE>
<CAPTION>
Six Months Ended Year Ended
STATEMENTS OF CHANGES IN NET ASSETS June 30, 1999 Dec. 31,1998
- ------------------------------------------------------------------------------------------------------------------------------
(Unaudited)
INCREASE (DECREASE) IN NET ASSETS:
From operations -
<S> <C> <C>
Net investment income...................................................... $ 167,537 $ 159,430
Net realized gain on investments........................................... 2,958,430 2,790,260
Change in unrealized appreciation of investments........................... 9,126,705 5,697,987
------------ ------------
Net increase in net assets resulting from operations..................... $ 12,252,672 $ 8,647,677
------------ ------------
Distributions to shareholders (Note 1G) -
From net investment income................................................. $ (169,448) $ (147,022)
From net realized gain..................................................... - (2,286,379)
------------ ------------
Total distributions...................................................... $ (169,448) $ (2,433,401)
------------ ------------
Net increase in net assets from fund share transactions (Note 4)............. $ 46,957,142 $ 16,943,444
------------ ------------
Net increase in net assets................................................... $ 59,040,366 $ 23,157,720
NET ASSETS:
At beginning of period....................................................... 50,878,466 27,720,746
------------ ------------
At end of period............................................................. $109,918,832 $ 50,878,466
============== ==============
DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME INCLUDED IN NET ASSETS
AT END OF PERIOD............................................................. $ (214,396) $ (212,485)
============== ==============
+ The Wright Major Blue Chip Equities Fund does not invest in a corresponding
master portfolio.
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT MANAGED EQUITY TRUST
- -------------------------------------------------------------------------------
Wright International Blue Chip Equities Fund (WIBC)
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1999 (Unaudited)
- -------------------------------------------------------------------------------
ASSETS:
Investment in portfolio, at value
(identified cost, $135,972,417) (Note 1A) $152,794,629
Receivable for fund shares sold......... 6,277
------------
Total assets.......................... $152,800,906
------------
LIABILITIES:
Payable for fund shares reacquired...... $ 29,092
Accrued expenses and other liabilities.. 18,887
------------
Total liabilities..................... $ 47,979
------------
NET ASSETS................................ $152,752,927
=============
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................... $113,757,272
Accumulated undistributed net realized gain on
investments and foreign currency (computed
on the basis of identified cost)....... 22,447,550
Unrealized appreciation of investments and
translation of assets and liabilities in
foreign currency(computed on the basis of
identified cost......................... 16,775,158
Distributions in excess of net
investment income....................... (227,053)
------------
Net assets applicable to outstandin
shares................................. $152,752,927
=============
Computation of net asset value, offering and redemption price per share:
Standard shares:
Net assets............................ $134,605,363
=============
Shares of beneficial interest outstanding 8,516,377
=============
Net asset value, offering price, and
redemption price per share of beneficial
interest............................. $15.81
=============
Institutional shares:
Net assets............................ $ 18,147,564
=============
Shares of beneficial interest outstanding 2,132,371
=============
Net asset value, offering price, and
redemption price per share
of beneficial interest.............. $8.51
=============
See notes to financial statements
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1999 (Unaudited)
- -------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1C):
Income -
Dividend income allocated from portfolio $ 1,993,619
Interest income allocated from portfolio 58,905
Less: Foreign taxes allocated from
portfolio............................. (227,754)
Expenses allocated from portfolio...... (1,017,789)
------------
Investment income..................... $ 806,981
------------
Expenses -
Administrator fee (Note 2)............. $ 13,907
Compensation of Trustees not affiliated with
the investment adviser or administrator 1,607
Custodian fee - Standard shares (Note 1D) 33,798
Custodian fee - Institutional shares (Note 1D) 8,055
Distribution expenses-Standard shares (Note 3) 201,575
Transfer and dividend disbursing agent fees
-Standard shares...................... 30,663
Transfer and dividend disbursing agent fees
-Institutional shares................. 2,355
Printing............................... 410
Audit services......................... 11,000
Legal services......................... 5,930
Registration costs - Standard shares... 9,461
Registration costs - Institutional shares 4,185
Miscellaneous.......................... 8,268
------------
Total expenses........................ $ 331,214
------------
Net investment income............. $ 475,767
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investment and foreign
currency transactions from portfolio
(identified cost basis)................ $23,789,884
Change in unrealized appreciation
(depreciation)of investments and
translation of assets and liabilities in
foreign currencies from portfolio..... (24,957,028)
------------
Net realized and unrealized loss on
investments............................ $(1,167,144)
------------
Net decrease in net assets from
operations .......................... $ (691,377)
=============
See notes to financial statements
<PAGE>
WRIGHT MANAGED EQUITY TRUST
- -------------------------------------------------------------------------------
Wright International Blue Chip Equities Fund (WIBC)
<TABLE>
<CAPTION>
Six Months Ended Year Ended
STATEMENTS OF CHANGES IN NET ASSETS June 30, 1999 Dec. 31, 1998
- -------------------------------------------------------------------------------------------------------------------------------
(Unaudited)
INCREASE (DECREASE) IN NET ASSETS:
From operations -
<S> <C> <C>
Net investment income...................................................... $ 475,767 $ 1,211,297
Net realized gain on investments........................................... 23,789,884 20,726,523
Change in unrealized appreciation (depreciation) of investments............ (24,957,028) (11,296,007)
------------ ------------
Net increase (decrease) in net assets resulting from operations.......... $ (691,377) $ 10,641,813
------------ ------------
Distributions to shareholders (Note 1G) -
From net investment income -
Standard shares.......................................................... $ - $ (827,510)
Institutional shares..................................................... - (284,480)
From net realized gain -
Standard shares.......................................................... (3,172,920) (10,461,145)
Institutional shares..................................................... (602,849) (1,854,640)
------------ ------------
Total distributions...................................................... $ (3,775,769) $(13,427,775)
------------ ------------
Net increase (decrease) in net assets from fund share transactions (Note 4) -
Standard shares.......................................................... $(54,755,111) $(18,251,870)
Institutional shares..................................................... 137,849 (24,916,881)
------------ ------------
Net decrease in net assets from fund share transactions...................... $(54,617,262) $(43,168,751)
------------ ------------
Net decrease in net assets................................................... $(59,084,408) $(45,954,713)
NET ASSETS:
At beginning of period....................................................... 211,837,335 257,792,048
------------ ------------
At end of period............................................................. $152,752,927 $211,837,335
============== ==============
DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME
INCLUDED IN NET ASSETS AT END OF PERIOD...................................... $ (227,053) $ (702,820)
============== ==============
See notes to financial statements
</TABLE>
<PAGE>
Wright Managed Equity Trust
- -------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
Year Ended December 31,
- ---------------------------------------------------------------------------------------------------------------------------------
Wright Selected Blue Chip Equities Fund 1999(4) 1998 1997 1996 1995 1994
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period........ $ 17.630 $ 19.200 $ 17.730 $ 16.830 $ 13.850 $ 14.920
-------- -------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment incom(*)................ $ 0.089 $ 0.095 $ 0.133 $ 0.204 $ 0.226 $ 0.233
Net realized and unrealized gain (loss) 0.961 (0.139) 5.172 2.886 3.904 (0.763)
-------- -------- -------- -------- -------- --------
Total income (loss)
from investment operations......... $ 1.050 $ (0.044) $ 5.305 $ 3.090 $ 4.130 $ (0.530)
-------- -------- -------- -------- -------- --------
Less distributions:
Dividends from investment income....... $ (0.040) $ (0.090) $ (0.145) $ (0.200) $ (0.200) $ (0.180)
Distributions from capital gains....... - (1.366) (3.690) (1.990) (0.840) (0.360)
In excess of net realized gain on
investments........................... - (0.070) - - (0.110) -
--------- -------- -------- -------- -------- --------
Total distributions................ $ (0.040) $ (1.526) $ (3.835) $ (2.190) $ (1.150) $ (0.540)
--------- -------- -------- -------- -------- --------
Net asset value, end of period.............. $ 18.640 $ 17.630 $ 19.200 $ 17.730 $ 16.830 $ 13.850
========== ========== ========== ========== ========== ==========
Total return(1)............................. 5.97% 0.14% 32.70% 18.57% 30.34% (3.52%)
Ratios/Supplemental Data:
Net assets, end of period (000 omitted) $ 139,815 $ 220,965 $ 259,411 $ 208,166 $217,588 $186,016
Ratio of total expenses to average
net assets(*) 1.15%(3)(5) 1.11%(3) 1.08%(3) 1.04% 1.04% 1.03%
Ratio of net income to average net assets(*) 0.41%(5) 0.46% 0.75% 1.15% 1.44% 1.57%
Portfolio turnover rate(2)............. - - 10% 43% 44% 72%
- ---------------------------------------------------------------------------------------------------------------------------------
(*)For the six months ended June 30, 1999, the administrator and the distributor
reduced their fees. Had such action not been undertaken, net investment
income per share and the ratios would have been as follows:
1999(4)
Net investment income per share........ $ 0.074
==========
Ratios (As a percentage of average net assets):
Expenses........................... 1.22%(3)(5)
==========
Net investment income.............. 0.34%(5)
==========
- -------------------------------------------------------------------------------
(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.
(4)For the six months ended June 30, 1999 (unaudited).
(5)Annualized.
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT MANAGED EQUITY TRUST
- -------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
Year Ended December 31,
- ---------------------------------------------------------------------------------------------------------------------------------
Wright Junior Blue Chip Equities Fund 1999(6)(8) 1998 1997 1996 1995 1994
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period........ $ 9.920 $ 10.480 $ 8.860 $ 10.850 $ 11.000 $ 11.950
-------- -------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment income(1)............... $ 0.001 $ 0.015 $ 0.160 $ 0.067 $ 0.120 $ 0.101
Net realized and unrealized gain (loss) 0.169 (0.530) 2.380 1.738 1.977 (0.431)
-------- -------- -------- -------- -------- --------
Total income (loss)
from investment operations......... $ 0.170 $ (0.515) $ 2.540 $ 1.805 $ 2.097 $ (0.330)
-------- -------- -------- -------- -------- --------
Less distributions:
Dividends from investment income....... $ - $ - $ (0.035) $ (0.100) $ (0.100) $ (0.100)
Distributions from capital gains....... - (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 period.............. $ 10.090 $ 9.920 $ 10.480 $ 8.860 $ 10.850 $ 11.000
========== ========== ========== ========== ========== ==========
Total return(3) ............................ 1.71% (4.90%) 28.92% 17.53% 20.51% (2.75%)
Ratios/Supplemental Data:
Net assets, end of period (000 omitted) $ 18,033 $ 34,517 $ 33,490 $ 14,029 $ 25,993 $ 37,124
Ratio of total expenses to average
net assets(1) 1.19%(2)(5)(7) 1.17%(2)(5) 1.18%(2)(5) 1.20%(2) 1.17%(2) 1.11%
Ratio of net income to average net assets(1) 0.03%(7) 0.05% 0.35% 0.73% 0.89% 0.91%
Portfolio turnover rate(4).............. - - 25% 41% 40% 36%
- ---------------------------------------------------------------------------------------------------------------------------------
(1)For the six months ended June 30, 1999 and the years ended December 31, 1998,
1997, 1996 and 1995, the investment adviser and/or the distributor reduced
their fees and the administrator was allocated a portion of the funds
operating expenses. Had such actions not been undertaken, net investment
income (loss) per share and the ratios would have been as follows:
1999(6) 1998 1997 1996 1995
- ---------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) per share. $ (0.019) $ (0.066) $ (0.041) $ 0.048 $ 0.105
========== ========== ========== ========== ==========
Ratios (as a percentage of average net assets):
Expenses........................... 1.79%(5)(7) 1.44%(5) 1.62%(5) 1.41% 1.28%
========== ========== ========== ========== ==========
Net investment income (loss)....... (0.57%)(7) (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 as follows:
1999(6) 1998 1997 1996 1995
- ----------------------------------------------------------------------------------------------------------------------------
Actual ratio of net expenses 1.17%(7) 1.15% 1.14% 1.15% 1.14%
- ----------------------------------------------------------------------------------------------------------------------------
(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.
(6)For the six months ended June 30, 1999 (unaudited).
(7)Annualized.
(8)Certain per share amounts are based on average shares outstanding.
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT MANAGED EQUITY TRUST
- -------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
Year Ended December 31,
- ----------------------------------------------------------------------------------------------------------------------------------
Wright Major Blue Chip Equities Fund 1999(4) 1998 1997 1996 1995 1994
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period........ $ 13.670 $ 12.020 $ 12.450 $ 12.650 $ 11.390 $ 12.720
-------- -------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment income(1)............... $ 0.052 $ 0.091 $ 0.100 $ 0.064 $ 0.153 $ 0.180
Net realized and unrealized gain (loss) 1.833 2.324 3.515 2.131 3.107 (0.295)
-------- -------- -------- -------- -------- --------
Total income (loss)
from investment operations......... $ 1.885 $ 2.415 $ 3.615 $ 2.195 $ 3.260 $ (0.115)
-------- -------- -------- -------- -------- --------
Less distributions:
Dividends from investment income....... $ (0.025) $ (0.055) $ (0.085) $ (0.120) $ (0.160) $ (0.160)
Distributions from capital gains....... - (0.710) (3.960) (2.275) (1.840) (1.055)
Return of capital...................... - - - - - -
-------- -------- -------- -------- -------- --------
Total distributions................ $ (0.025) $ (0.765) $ (4.045) $ (2.395) $ (2.000) $ (1.215)
-------- -------- -------- -------- -------- --------
Net asset value, end of period.............. $ 15.530 $ 13.670 $ 12.020 $ 12.450 $ 12.650 $ 11.390
========== ========== ========== ========== ========== ==========
Total Return(3)............................. 13.80% 20.43% 33.86% 17.63% 28.98% (0.70%)
Ratios/Supplemental Data:
Net assets, end of period (000 omitted) $ 109,919 $ 50,878 $ 27,721 $ 25,815 $ 49,134 $ 51,085
Ratio of total expenses to average
net assets(1)......................... 1.06%(2)(5) 1.07%(2) 1.08%(2) 1.08%(2) 1.07%(2) 0.99%
Ratio of net income to average
net assets(1) 0.38%(5) 0.49% 0.68% 0.90% 1.19% 1.46%
Portfolio turnover rate................ 25% 36% 89% 45% 83% 55%
- --------------------------------------------------------------------------------------------------------------------------------
(1)For the six months ended June 30, 1999 and the years ended December 31, 1998,
1997, 1996 and 1995, the distributor 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:
1999(4) 1998 1997 1996 1995
- ---------------------------------------------------------------------------------------------------------------------
Net investment income per share........ $ 0.038 $ 0.052 $ 0.049 $ 0.061 $ 0.150
========== ========== ========== ========== ==========
Ratios (As a percentage of average net assets):
Expenses........................... 1.16%(5) 1.28% 1.43% 1.12% 1.09%
========== ========== ========== ========== ==========
Net investment income.............. 0.28%(5) 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 as follows:
1999(4) 1998 1997 1996 1995
- ---------------------------------------------------------------------------------------------------------------------
Actual ratio of net expenses 1.05%(5) 1.05% 1.05% 1.05% 1.05%
- ---------------------------------------------------------------------------------------------------------------------
(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)For the six months ended June 30, 1999 (unaudited).
(5)Annualized.
See notes to financial statements
</TABLE>
<PAGE>
Wright Managed Equity Trust
- ------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
Year Ended December 31,
- ----------------------------------------------------------------------------------------------------------------------------
Wright International Blue Chip Equities Fund 1999(4) 1998 1997 1996 1995 1994
- ----------------------------------------------------------------------------------------------------------------------------
Standard Shares
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period........ $16.020 $16.020 $16.690 $14.770 $13.090 $13.410
--------- --------- --------- --------- --------- ---------
Income (loss) from investment operations:
Net investment income ................. $ 0.021 $ 0.078 $ 0.185 $ 0.128 $ 0.142 $ 0.127
Net realized and unrealized gain (loss) 0.056 0.868 0.048+ 2.902 1.638 (0.347)
--------- --------- --------- --------- --------- ---------
Total income (loss)
from investment operations......... $ 0.077 $ 0.946 $ 0.233 $ 3.030 $ 1.780 $ (0.220)
--------- --------- --------- --------- --------- ---------
Less distributions:
Dividends from investment income....... $ - $ (0.070) $ (0.163) $ (0.100) $ (0.100) $ (0.100)
Distributions from capital gains....... (0.287) (0.876) (0.740) (1.010) - -
Return of capital...................... - - - - - -
--------- --------- --------- --------- --------- ---------
Total distributions................ $ (0.287) $ (0.946) $ (0.903) $ (1.110) $ (0.100) $ (0.100)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period.............. $15.810 $16.020 $16.020 $16.690 $14.770 $13.090
========== ========== ========== ========== ========== ==========
Total return(1)............................. 0.55% 6.14% 1.54% 20.73% 13.61% (1.64%)
Ratios/Supplemental Data
Net assets, end of period (000 omitted) $134,605 $193,327 $212,698 $268,732 $237,176 $200,232
Ratio of total expenses to average
daily net assets...................... 1.52%(3)(5) 1.35%(3) 1.31%(3) 1.30% 1.29% 1.31%
Ratio of net income to average
daily net assets...................... 0.50%(5) 0.42%(+) 0.82% 0.82% 0.99% 1.00%
Portfolio turnover rate(2)............. - - 4% 29% 12% 12%
- -------------------------------------------------------------------------------------------------------------------------------
(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.
(4)For the six months ended June 30, 1999 (unaudited).
(5)Annualized.
(+)Per share amount is not in accordance with the net realized and unrealized
gain (loss) for the period because of the timing of sales of Fund shares and
the amounts per share realized and unrealized gains and losses at such times.
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT MANAGED EQUITY TRUST
- -------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
Year Ended December 31,
- ----------------------------------------------------------------------------------------------------------------------------
Wright International Blue Chip Equities Fund 1999(3) 1998 1997(*)
- ----------------------------------------------------------------------------------------------------------------------------
Institutional Shares
<S> <C> <C> <C>
Net asset value, beginning of period........ $ 8.750 $ 9.130 $ 10.000
-------- -------- --------
Income (loss) from Investment Operations:
Net investment income ................. $ 0.033 $ 0.159 $ 0.006
Net realized and unrealized gain ...... 0.014 0.487 (0.646)(+)
-------- -------- ----------
Total income (loss)
from investment operations......... $ 0.047 $ 0.646 $ (0.640)
-------- -------- --------
Less distributions:
Dividends from investment income....... $ - $ (0.150) $ -
Distributions from capital gains....... (0.287) (0.876) (0.230)
Return of capital...................... - - -
-------- -------- --------
Total distribution................. $ (0.287) $ (1.026) $ (0.230)
-------- -------- --------
Net asset value, end of period.............. $ 8.510 $ 8.750 $ 9.130
========= ========= =========
Total return(1)............................. 0.66% 7.54% (6.37%)
Ratios/Supplemental Data:
Net assets, end of period (000 omitted) $ 18,148 $ 18,511 $ 45,094
Ratio of total expenses to average daily
net assets........................... 1.35%(2)(++) 1.12%(2) 1.16%(2)(++)
Ratio of net income to average daily
net assets........................... 0.80%(++) 0.73% 0.15%(++)
- ---------------------------------------------------------------------------------------------------------------------------
(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.
(3)For the six months ended June 30, 1999 (unaudited).
(+)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.
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT MANAGED EQUITY TRUST
- -------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited)
(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 June 30, 1999 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 th
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.
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.
<PAGE>
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.
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 June
30, 1999, only WIBC had an institutional share class.
K. Interim Financial Information - The interim financial statements relating
to June 30, 1999 and for the six month period then ended have not been
audited by independent certified public accountants, but in the opinion of
the Trust's management, reflect all adjustments, consisting only of
normally recurring adjustments, necessary for the fair presentation of the
financial statements.
(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 six months ended June 30, 1999, 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. To enhance the net income of the funds, the
adviser made a preliminary allocation of its fees by $13,900 and $27,980 for WBC
and WJBC, respectively. The Trust also has engaged Eaton Vance Management (Eaton
Vance) to act as administrator of the Trust. Under the Administration Agreement,
Eaton Vance is responsible for managing the business affairs of the Trust and is
compensated based upon a percentage of average daily net assets which rate is
reduced as average daily net assets exceed certain levels. For the six months
ended June 30, 1999, the effective annual rate was 0.02% for WBC, 0.02% for
WJBC, 0.22% for WMBC, and 0.02% for WIBC. Certain of the Trustees and officers
of the Trust are Trustees or officers of the above organizations. Except as to
Trustees of the Trust who are not affiliated with Eaton Vance or Wright,
Trustees and officers receive remuneration for their services to the Trust out
of the fees paid to Eaton Vance and Wright.
<PAGE>
(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 WBC,
WJBC and WMBC, the Principal Underwriter made a preliminary reduction of its fee
by $45,731, $21,727 and $44,735, 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 six
months ended June 30, 1999, 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>
Six Months Ended Year Ended
June 30, 1999 (Unaudited) December 31, 1998
--------------------------------------------------------------
Shares Amount Shares Amount
- ----------------------------------------------------------------------------------------------------------------------------
Wright Selected Blue Chip Equities Fund --
<S> <C> <C> <C> <C>
Sold................................................... 1,215,329 $ 21,267,121 2,109,096 $ 40,389,405
Issued to shareholders in payment of distributions
declared.............................................. 4,627 253,123 877,643 14,839,357
Reacquired............................................. (6,249,533) (107,243,285) (3,967,641) (71,617,605)
------------ -------------- ------------- --------------
Net decrease......................................... (5,029,577) $ (85,723,041) (980,902) $ (16,388,843)
============= ================ ============= ================
Wright Junior Blue Chip Equities Fund --
Sold................................................... 187,257 $ 1,328,196 1,024,797 $ 10,421,975
Issued to shareholders in payment of distributions declared - - 12,811 122,269
Reacquired............................................. (1,879,856) (16,648,567) (753,849) (7,476,001)
----------- -------------- ----------- --------------
Net increase (decrease).............................. (1,692,599) $ (15,320,371) 283,759 $ 3,068,243
============= ================ ============= ================
Wright Major Blue Chip Equities Fund --
Sold.................................................. 4,760,136 $ 67,735,960 2,262,400 $ 27,942,197
Issued to shareholders in payment of distributions declared 9,628 140,885 171,868 2,268,398
Reacquired............................................. (1,415,667) (20,919,703) (1,017,149) (13,267,151)
----------- -------------- ----------- --------------
Net increase......................................... 3,354,097 $ 46,957,142 1,417,119 $ 16,943,444
============= ============== ============= ===============
<PAGE>
Six Months Ended Year Ended
June 30, 1999 (Unaudited) December 31, 1998
-------------------------------------------------------------
Shares Amount Shares Amount
- ---------------------------------------------------------------------------------------------------------------------------
Wright International Blue Chip Equities Fund -- Standard Shares:
Sold................................................... 2,726,406 $ 42,224,583 6,595,651 $ 110,930,477
Issued to shareholders in payment of distributions
declared.............................................. 169,178 2,578,270 566,574 8,776,474
Reacquired............................................. (6,444,593) (99,557,964) (8,370,704) (137,958,821)
----------- -------------- ----------- --------------
Net decrease......................................... (3,549,009) $ (54,755,111) (1,208,479) $ (18,251,870)
============= ================= ============= =================
Wright International Blue Chip Equities Fund -- Institutional Shares:
Issued to shareholders in payment of distributions
declare............................................... 73,518 $ 602,849 249,025 $ 2,139,120
Reacquired............................................. (55,918) (465,000) (3,070,822) (27,056,001)
----------- -------------- ----------- --------------
Net increase (decrease)................................ 17,600 $ 137,849 (2,821,797) $ (24,916,881)
============= ================= ============= =================
</TABLE>
- -------------------------------------------------------------------------------
(5) INVESTMENT TRANSACTIONS
Purchases and sales of investments, other than U.S. Government securities
and short-term obligations were as follows:
Six Months Ended June 30, 1999
Wright Major Blue Chip
Equities Fund
- ------------------------------------------------------------------------------
(Unaudited)
Purchases....................... $ 67,608,428
================
Sales........................... $ 21,261,764
================
- ------------------------------------------------------------------------------
Increases and decreases in each fund's investment in its corresponding
Portfolio for the six months ended June 30, 1999 were as follows:
WBC WJBC WIBC
- -------------------------------------------------------------------------------
(Unaudited)
Increases..... $ 21,985,098 $ 1,784,806 $ 42,291,250
Decreases..... (108,726,326) (16,925,841) (101,366,988)
- ------------------------------------------------------------------------------
(6) FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES
The cost and unrealized appreciation (depreciation) of the investment
securities owned at June 30, 1999, as computed on a federal income tax basis,
are as follows:
Wright Major
Blue Chip
Equities Fund
- -------------------------------------------------------------------------------
(Unaudited)
Aggregate cost.......................... $ 88,787,751
=============
Gross unrealized appreciation........... $ 21,454,693
Gross unrealized depreciation........... (391,823)
-------------
Net unrealized appreciation............. $ 21,062,870
=============
- -------------------------------------------------------------------------------
<PAGE>
(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 six months ended June 30, 1999.
<PAGE>
WRIGHT MANAGED INCOME TRUST
- ------------------------------------------------------------------------------
Wright U.S. Treasury Money Market Fund (WTMM)(+)
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1999 (Unaudited)
- ------------------------------------------------------------------------------
ASSETS:
Total investments, at amortized cost
(Note 1A).............................. $83,394,574
------------
Total assets.......................... $83,394,574
------------
LIABILITIES:
Cash overdraft.......................... $ 2,852,271
Distributions payable................... 242,401
Accrued management fees 10,468
Accrued expenses and other liabilities.. 23,777
------------
Total liabilities..................... $ 3,128,917
------------
NET ASSETS................................ $80,265,657
==============
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................... $80,265,657
------------
Net assets applicable to outstanding shares $80,265,657
==============
SHARES OF BENEFICIAL INTEREST OUTSTANDING 80,265,657
==============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST................. $1.00
==============
(+)The Wright U.S. Treasury Money Market Fund does not invest in a corresponding
master portfolio. The amortized cost of securities held at June 30, 1999 is the
same as the market value.
See notes to financial statements
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1999 (Unaudited)
- -------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1B):
Interest income........................ $ 2,005,431
------------
Investment income..................... $ 2,005,431
------------
Expenses -
Investment adviser fee (Note 3)........ $ 154,911
Administrator fee (Note 3)............. 31,152
Compensation of Trustees not affiliated with
the investment adviser or administrator 1,357
Custodian fee (Note 1C)................ 24,748
Transfer and dividend disbursing agent fees 29,544
Printing............................... 2,938
Audit services......................... 30,580
Legal services......................... 2,530
Registration costs..................... 16,430
Miscellaneous.......................... 197
------------
Total expenses........................ $ 294,387
------------
Deduct -
Preliminary reduction of investment adviser fee
(Note 3).............................. $ 93,179
------------
Net expenses.......................... $ 201,208
------------
Net investment income............... $ 1,804,223
------------
Net increase in net assets from operations $ 1,804,223
==============
See notes to financial statements
<PAGE>
WRIGHT MANAGED INCOME TRUST
- -------------------------------------------------------------------------------
Wright U.S. Treasury Money Market Fund (WTMM)(+)
<TABLE>
<CAPTION>
Six Months Ended Year Ended
STATEMENTS OF CHANGES IN NET ASSETS June 30, 1999 Dec. 31, 1998
- ------------------------------------------------------------------------------------------------------------------------------
(Unaudited)
INCREASE (DECREASE) IN NET ASSETS:
<S> <C> <C>
Net investment income........................................................ $ 1,804,223 $ 4,347,143
------------ ------------
Net increase in net assets resulting from operations..................... $ 1,804,223 $ 4,347,143
------------ ------------
Distributions to shareholders (Note 2) -
From net investment income................................................. $ (1,804,223) $ (4,347,143)
------------ ------------
Total distributions...................................................... $ (1,804,223) $ (4,347,143)
------------ ------------
Fund share transactions (Note 5)(+) -
Proceeds from shares sold.................................................. $107,108,188 $269,270,734
Reinvestment of dividends.................................................. 1,145,018 2,616,748
Cost of shares reacquired.................................................. (119,310,541) (267,623,266)
------------ ------------
Net increase (decrease) in net assets from fund share transactions........... $(11,057,335) $ 4,264,216
------------ ------------
Net increase (decrease) in net assets.................................... $(11,057,335) $ 4,264,216
NET ASSETS:
At beginning of period....................................................... 91,322,992 87,058,776
------------ ------------
At end of period............................................................. $ 80,265,657 $ 91,322,992
============= =============
(+) For WTMM, the Fund share transactions are at a net asset value of $1.00 per
share.
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT MANAGED INCOME TRUST
- -------------------------------------------------------------------------------
Wright U.S. Government Near Term Fund (WNTB)
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1999 (Unaudited)
- -------------------------------------------------------------------------------
ASSETS:
Investments -
Investments in portfolio, at value
(identified cost of $78,135,923) ..... $77,974,066
------------
Total investments, at value (Note 1A)... $77,974,066
Receivable from adviser................. 14,600
------------
Total assets.......................... $77,988,666
------------
LIABILITIES:
Payable for fund shares reacquired...... $ 135
Distributions payable................... 337,744
Accrued expenses and other liabilities.. 8,950
------------
Total liabilities..................... $ 346,829
------------
NET ASSETS................................ $ 77,641,837
==============
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................... $ 92,810,863
Accumulated net realized loss on investments
(computed on the basis of identified cost) (15,042,387)
Unrealized depreciation of investments
(computed on the basis of identified cost) (161,857)
Undistributed net investment income..... 35,218
--------------
Net assets applicable to outstanding shares $ 77,641,837
==============
SHARES OF BENEFICIAL INTEREST OUTSTANDING 7,712,856
==============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST................. $10.07
==============
See notes to financial statements
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1999 (Unaudited)
- -------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1B):
Interest income allocated from portfolio $ 2,601,066
Expenses allocated from portfolio...... (251,611)
------------
Investment income..................... $ 2,349,455
------------
Expenses -
Administrator fee (Note 3)............. $ 8,440
Compensation of Trustees not affiliated with the
investment adviser or administrator... 1,291
Custodian fee (Note 1C)................ 8,749
Distribution expenses (Note 4)......... 105,491
Transfer and dividend disbursing agent fees 10,506
Printing............................... 2,919
Audit services......................... 21,016
Legal services......................... 4,795
Registration costs..................... 10,409
Miscellaneous.......................... 862
------------
Total expenses........................ $ 174,478
------------
Deduct -
Preliminary reduction of distribution expenses by
principal underwriter (Note 4)........ $ 34,797
Preliminary allocation of expenses to adviser
(Note 3)............................. 14,600
------------
Total deductions...................... $ 49,397
------------
Net expenses.......................... $ 125,081
------------
Net investment income............... $ 2,224,374
------------
REALIZED AND UNREALIZED LOSS ON INVESTMENTS:
Net realized loss on investment transactions
from portfolio (identified cost basis). $ (53,189)
Net change in unrealized appreciation
(depreciation) of investments.......... (1,720,990)
------------
Net realized and unrealized loss on
investments........................... $(1,774,179)
------------
Net increase in net assets from operations $ 450,195
==============
See notes to financial statements
<PAGE>
WRIGHT MANAGED INCOME TRUST
- -------------------------------------------------------------------------------
Wright U.S. Government Near Term Fund (WNTB)
<TABLE>
<CAPTION>
Six Months Ended Year Ended
STATEMENTS OF CHANGES IN NET ASSETS June 30, 1999 Dec. 31, 1998
- ---------------------------------------------------------------------------------------------------------------------------------
(Unaudited)
INCREASE (DECREASE) IN NET ASSETS:
From operations -
<S> <C> <C>
Net investment income...................................................... $ 2,224,374 $ 5,381,356
Net realized loss on investment transactions............................... (53,189) (45,687)
Change in unrealized appreciation (depreciation) of investments............ (1,720,990) 580,238
------------ ------------
Net increase in net assets resulting from operations..................... $ 450,195 $ 5,915,907
------------ ------------
Distributions to shareholders (Note 2) -
From net investment income................................................. $ (2,186,423) $ (5,565,401)
------------ ------------
Total distributions...................................................... $ (2,186,423) $ (5,565,401)
------------ ------------
Fund share transactions (Note 5) -
Proceeds from shares sold.................................................. $ 7,286,190 $ 16,447,345
Reinvestment of dividends.................................................. 1,044,421 3,163,303
Cost of shares reacquired.................................................. (20,874,090) (30,604,406)
------------ ------------
Net decrease in net assets from fund share transactions...................... $(12,543,479) $(10,993,758)
------------ ------------
Net decrease in net assets............................................... $(14,279,707) $(10,643,252)
NET ASSETS:
At beginning of period....................................................... 91,921,544 102,564,796
------------ ------------
At end of period............................................................. $ 77,641,837 $ 91,921,544
============= =============
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME INCLUDED
IN NET ASSETS AT END OF PERIOD............................................... $ 35,218 $ (2,733)
============= =============
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT MANAGED INCOME TRUST
- -------------------------------------------------------------------------------
Wright U.S. Treasury Fund (WUSTB)
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1999 (Unaudited)
- -------------------------------------------------------------------------------
ASSETS:
Investments -
Investments in portfolio, at value
(identified cost of $54,097,856) ..... $54,976,361
------------
Total investments, at value (Note 1A)... $54,976,361
Receivable for fund shares sold......... 5,000
Receivable from adviser................. 10,200
------------
Total assets.......................... $54,991,561
------------
LIABILITIES:
Distributions payable................... $ 240,339
Accrued expenses and other liabilities.. 8,579
------------
Total liabilities..................... $ 248,918
------------
NET ASSETS................................ $54,742,643
==============
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................... $53,466,309
Accumulated net realized gain on investments
(computed on the basis of identified cost) 390,996
Unrealized appreciation of investments
(computed on the basis of identified cost) 878,505
Undistributed net investment income..... 6,833
------------
Net assets applicable to outstanding shares $54,742,643
==============
SHARES OF BENEFICIAL INTEREST OUTSTANDING 4,053,420
==============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST................. $13.51
==============
See notes to financial statements
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1999 (Unaudited)
- ------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1B):
Interest income allocated from portfolio $ 1,869,904
Expenses allocated from portfolio...... (181,712)
------------
Investment income..................... $ 1,688,192
------------
Expenses -
Administrator fee (Note 3)............. $ 6,208
Compensation of Trustees not affiliated with the
investment adviser or administrator... 2,066
Custodian fee (Note 1C)................ 9,440
Distribution expenses (Note 4)......... 77,212
Transfer and dividend disbursing agent fees 8,742
Printing............................... 2,045
Audit services......................... 2,900
Legal services......................... 26,461
Registration costs..................... 9,886
Miscellaneous.......................... 860
------------
Total expenses........................ $ 145,820
------------
Deduct -
Preliminary reduction of distribution expenses by
principal underwriter (Note 4)........ $ 37,766
Preliminary allocation of expenses to adviser
(Note 3).............................. 10,200
------------
Total deductions...................... $ 47,966
------------
Net expenses.......................... $ 97,854
------------
Net investment income............... $ 1,590,338
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investment transactions
from portfolio (identified cost basis). $ 392,786
Net change in unrealized appreciation
(depreciation) of investments.......... (4,192,714)
------------
Net realized and unrealized loss on
investments........................... $(3,799,928)
------------
Net decrease in net assets from operations $(2,209,590)
==============
See notes to financial statements
<PAGE>
WRIGHT MANAGED INCOME TRUST
- -------------------------------------------------------------------------------
Wright U.S. Treasury Fund (WUSTB)
<TABLE>
<CAPTION>
Six Months Ended Year Ended
STATEMENTS OF CHANGES IN NET ASSETS June 30, 1999 Dec. 31, 1998
- ----------------------------------------------------------------------------------------------------------------------------------
(Unaudited)
INCREASE (DECREASE) IN NET ASSETS:
From operations -
<S> <C> <C>
Net investment income...................................................... $ 1,590,338 $ 3,662,667
Net realized gain on investment transactions............................... 392,786 984,728
Change in unrealized appreciation (depreciation) of investments............ (4,192,714) 2,386,702
------------ ------------
Net increase (decrease) in net assets resulting from operations.......... $ (2,209,590) $ 7,034,097
------------ ------------
Distributions to shareholders (Note 2) -
From net investment income................................................. $ (1,583,505) $ (3,755,230)
From net realized gain..................................................... (224,612) (751,891)
------------ ------------
Total distributions...................................................... $ (1,808,117) $ (4,507,121)
------------ ------------
Fund share transactions (Note 5) -
Proceeds from shares sold.................................................. $ 6,332,710 $ 18,684,432
Reinvestment of dividends.................................................. 1,060,476 3,313,736
Cost of shares reacquired.................................................. (15,889,194) (31,426,843)
------------ ------------
Net decrease in net assets from fund share transactions...................... $ (8,496,008) $ (9,428,675)
------------ ------------
Net decrease in net assets............................................... $(12,513,715) $ (6,901,699)
NET ASSETS:
At beginning of period....................................................... 67,256,358 74,158,057
------------ ------------
At end of period............................................................. $ 54,742,643 $ 67,256,358
============= =============
UNDISTRIBUTED NET INVESTMENT INCOME
INCLUDED IN NET ASSETS AT END OF PERIOD...................................... $ 6,833 $ -
============= =============
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT MANAGED INCOME TRUST
- -------------------------------------------------------------------------------
Wright Total Return Bond Fund (WTRB)(+)
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1999 (Unaudited)
- -------------------------------------------------------------------------------
ASSETS:
Investments -
Identified cost....................... $105,408,146
Unrealized depreciation............... (2,598,982)
------------
Total investments, at value (Note 1A)... $102,809,164
Cash.................................... 226,701
Receivable for fund shares sold......... 3,939
Interest receivable..................... 1,581,697
Receivable from investment adviser...... 21,625
------------
Total assets.......................... $104,643,126
------------
LIABILITIES:
Payable for fund shares reacquired...... $ 28,792
Distributions payable................... 475,491
Accrued expenses and other liabilities.. 18,944
------------
Total liabilities..................... $ 523,227
------------
NET ASSETS................................ $104,119,899
==============
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................... $105,988,496
Accumulated undistributed net realized gain
on investments (computed on the basis of
identified cost)....................... 740,087
Unrealized depreciation of investments
(computed on the basis of identified cost) (2,598,982)
Distributions in excess of net investment income (9,702)
------------
Net assets applicable to outstanding shares $104,119,899
==============
SHARES OF BENEFICIAL INTEREST OUTSTANDING 8,338,191
==============
NET ASSET VALUE, OFFERING PRICE, AND
REDEMPTION PRICE PER SHARE OF
BENEFICIAL INTEREST.................... $12.49
==============
(+)The Wright Total Return Bond Fund does not invest in a corresponding master
portfolio.
See notes to financial statements
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1999 (Unaudited)
- -------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1B):
Interest income........................ $ 3,473,383
------------
Investment income..................... $ 3,473,383
------------
Expenses -
Investment adviser fee (Note 3)........ $ 230,655
Administrator fee (Note 3)............. 52,397
Compensation of Trustees not affiliated with the
investment adviser or administrator... 1,402
Custodian fee (Note 1C)................ 17,045
Distribution expenses (Note 4)......... 141,527
Transfer and dividend disbursing agent fees 26,639
Printing............................... 1,959
Audit services......................... 32,074
Legal services......................... 1,750
Registration costs..................... 15,938
Miscellaneous.......................... 9,737
------------
Total expenses........................ $ 531,123
------------
Deduct -
Preliminary reduction of investment adviser fee
(Note 3).............................. $ 21,625
------------
Net expenses.......................... $ 509,498
------------
Net investment income............... $ 2,963,885
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investment transactions
(identified cost basis)................ $ 740,668
Net change in unrealized appreciation
(depreciation) of investments.......... (7,997,407)
------------
Net realized and unrealized loss on
investments........................... $(7,256,739)
------------
Net decrease in net assets from operations $(4,292,854)
==============
See notes to financial statements
<PAGE>
WRIGHT MANAGED INCOME TRUST
- -------------------------------------------------------------------------------
Wright Total Return Bond Fund (WTRB)
<TABLE>
<CAPTION>
Six Months Ended Year Ended
STATEMENTS OF CHANGES IN NET ASSETS June 30, 1999 Dec. 31, 1998
- ---------------------------------------------------------------------------------------------------------------------------------
(Unaudited)
INCREASE (DECREASE) IN NET ASSETS:
From operations -
<S> <C> <C>
Net investment income...................................................... $ 2,963,885 $ 4,885,375
Net realized gain on investment transactions............................... 740,668 839,997
Change in unrealized appreciation (depreciation) of investments............ (7,997,407) 2,803,169
------------ ------------
Net increase (decrease) in net assets resulting from operations.......... $ (4,292,854) $ 8,528,541
------------ ------------
Distributions to shareholders (Note 2) -
From net investment income -............................................... $ (2,963,253) $ (4,935,698)
From net realized gain..................................................... - (1,048,957)
In excess of realized gains................................................ - (6,717)
------------ ------------
Total distributions...................................................... $ (2,963,253) $ (5,991,372)
------------ ------------
Net increase (decrease) in net assets from fund share transactions (Note 5).. $ (4,561,344) $ 33,396,518
------------ ------------
Net increase (decrease) in net assets.................................... $(11,817,451) $ 35,933,687
NET ASSETS:
At beginning of period....................................................... 115,937,350 80,003,663
------------ ------------
At end of period............................................................. $104,119,899 $115,937,350
============= =============
DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME
INCLUDED IN NET ASSETS AT END OF PERIOD...................................... $ (9,702) $ (10,334)
============= =============
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT MANAGED INCOME TRUST
- -------------------------------------------------------------------------------
Wright Current Income Fund (WCIF)
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1999 (Unaudited)
- -------------------------------------------------------------------------------
ASSETS:
Investments -
Investment in portfolio, at value (identified
cost of $105,075,238)............... $103,443,048
------------
Total investments, at value (Note 1A)... $103,443,048
Receivable for fund shares sold......... 8
Receivable from adviser................. 10,250
------------
Total assets.......................... $103,453,306
------------
LIABILITIES:
Distributions payable................... $ 512,782
Accrued expenses and other liabilities.. 9,679
------------
Total liabilities..................... $ 522,461
------------
NET ASSETS................................ $102,930,845
==============
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................... $105,923,844
Accumulated undistributed net realized loss
on investments (computed on the basis of
identified cost)....................... (1,152,306)
Unrealized depreciation of investments
(computed on the basis of identified cost) (1,632,190)
Distributions in excess of net investment
income................................. (208,503)
------------
Net assets applicable to outstanding shares $102,930,845
==============
Computation of net asset value, offering and redemption price per share:
Standard Shares:
Net assets............................. $ 79,961,421
==============
Shares of beneficial interest outstanding 7,776,245
==============
Net asset value, offering price, and
redemption price per share of
beneficial interest................... $ 10.28
==============
Institutional Shares:
Net assets............................. $ 22,969,424
==============
SHARES OF BENEFICIAL INTEREST OUTSTANDING 2,347,065
==============
NET ASSET VALUE, OFFERING PRICE, AND
REDEMPTION PRICE PER SHARE OF
BENEFICIAL INTEREST................... $ 9.79
==============
See notes to financial statements
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1999 (Unaudited)
- -------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1B):
Interest income allocated from portfolio $ 3,715,044
Expenses allocated from portfolio...... (317,941)
------------
Investment income..................... $ 3,397,103
------------
Expenses -
Administrator fee (Note 3)............. $ 10,394
Compensation of Trustees not affiliated with the
investment adviser or administrator... 1,305
Custodian fee -
Standard shares (Note 1C)............. 15,855
Institutional shares (Note 1C)........ 8,006
Distribution expenses -
Standard shares (Note 4).............. 107,107
Transfer and dividend disbursing agent fees
Standard shares....................... 10,253
Institutional shares.................. 2,730
Printing............................... 964
Audit services......................... 5,890
Legal services......................... 1,795
Registration costs -
Standard shares....................... 9,200
Institutional shares.................. 5,737
Miscellaneous.......................... 5,263
------------
Total expenses........................ $ 184,499
------------
Deduct -
Preliminary reduction of distribution expenses
- Standard shares
by principal underwriter (Note 4)... $ 17,946
Preliminary allocation of expenses to adviser
(Note 3).............................. 10,250
------------
Total deductions...................... $ 28,196
------------
Net expenses.......................... $ 156,303
------------
Net investment income............... $ 3,240,800
------------
REALIZED AND UNREALIZED LOSS ON INVESTMENTS:
Net realized loss on investment transactions
(identified cost basis)................ $ (98,697)
Change in unrealized appreciation
(depreciation) of investments.......... (3,774,755)
------------
Net realized and unrealized loss on
investments............................ (3,873,452)
------------
Net decrease in net assets from operations $ (632,652)
==============
See notes to financial statements
<PAGE>
WRIGHT MANAGED INCOME TRUST
- -------------------------------------------------------------------------------
Wright Current Income Fund (WCIF)
<TABLE>
<CAPTION>
Six Months Ended Year Ended
STATEMENTS OF CHANGES IN NET ASSETS June 30, 1999 Dec. 31, 1998
- --------------------------------------------------------------------------------------------------------------------------------
(Unaudited)
INCREASE (DECREASE) IN NET ASSETS:
From operations -
<S> <C> <C>
Net investment income...................................................... $ 3,240,800 $ 6,436,356
Net realized loss on investment transactions............................... (98,697) (142,545)
Change in unrealized appreciation (depreciation) of investments............ (3,774,755) 406,744
------------ ------------
Net increase (decrease) in net assets resulting from operations.......... $ (632,652) $ 6,700,555
------------ ------------
Distributions to shareholders (Note 2) -
From net investment income -
Standard shares.......................................................... $ (2,523,691) $ (5,063,570)
Institutional shares..................................................... (694,777) (1,363,651)
In excess of net investment income - Standard shares....................... - (4,167)
------------ ------------
Total distributions...................................................... $ (3,218,468) $ (6,431,388)
------------ ------------
Net increase (decrease) in net assets
from Fund share transactions (Note 5) -
Standard shares.......................................................... $ (7,288,111) $ 13,841,664
Institutional shares..................................................... 577,323 1,363,651
------------ ------------
Net increase (decrease) in net assets from fund share transactions....... $ (6,710,788) $ 15,205,315
------------ ------------
Net increase (decrease) in net assets.................................... $(10,561,908) $ 15,474,482
NET ASSETS:
At beginning of period....................................................... 113,492,753 98,018,271
------------ ------------
At end of period............................................................. $102,930,845 $113,492,753
============= =============
DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME INCLUDED
IN NET ASSETS AT END OF PERIOD............................................... $ (208,503) $ (230,835)
============= =============
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT MANAGED INCOME TRUST
- -------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
Year Ended December 31,
- ---------------------------------------------------------------------------------------------------------------------------------
Wright U.S. Treasury Money Market Fund 1999(4) 1998 1997 1996 1995 1994
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period........... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Income from investment operations:
Net investment income(1).................... 0.020 0.0460 0.04739 0.04745 0.05212 0.03494
-------- -------- -------- -------- -------- --------
Total from investment operations............ 0.020 0.0460 0.04739 0.04745 0.05212 0.03494
Less distributions:
Dividends from Investment income............ (0.020) (0.0460) (0.04739) (0.04745) (0.05212) (0.03494)
Distributions from capital gains............ - - - - - -
Return of capital........................... - - - - - -
-------- -------- -------- -------- -------- --------
Total distributions...................... (0.020) (0.0460) (0.04739) (0.04745) (0.05212) (0.03494)
-------- -------- -------- -------- -------- --------
Net asset value, end of period................. $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
========= ========= ========= ========= ========= =========
Total return(2)................................ 4.10% 4.73% 4.84% 4.85% 5.34% 3.55%
Ratios/Supplemental Data:
Net assets, end of period (000 omitted)..... $80,266 $91,323 $87,059 $95,184 $45,889 $68,877
Ratio of total expenses to average net
assets(1).................................. 0.45%(5) 0.45% 0.45% 0.45%(3) 0.46%(3) 0.45%
Ratio of net income to average net assets(1) 4.04%(5) 4.61% 4.74% 4.73% 5.22% 3.77%
- -------------------------------------------------------------------------------------------------------------------------------
(1)During each of the above periods, the investment adviser voluntarily 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:
Net investment income per share................ $ 0.01896 $ 0.04440 $0.04599 $0.04524 $0.05120 $0.03253
========= ========= ========= ========= ========= =========
Ratios (as a percentage of average daily net assets):
Expenses.................................... 0.66%(5) 0.61% 0.59% 0.67% 0.65% 0.71%
========= ========= ========= ========= ========= =========
Net investment income ...................... 3.83%(5) 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 as follows:
1996 1995
- -------------------------------------------------------------------------------------------------------------------------------
Actual ratio of net expenses 0.44% 0.45%
- --------------------------------------------------------------------------------------------------------------------------------
(4)For the six months ended June 30, 1999 (unaudited).
(5)Annualized.
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT MANAGED INCOME TRUST
- ------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
Year Ended December 31,
- ----------------------------------------------------------------------------------------------------------------------------------
Wright U.S. Government Near Term Fund 1999(6) 1998 1997 1996 1995 1994
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period........ $ 10.270 $ 10.240 $ 10.240 $ 10.450 $ 9.920 $ 10.840
-------- -------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment income(1)................. $ 0.265 $ 0.549 $ 0.599 $ 0.606 $ 0.631 $ 0.588
Net realized and unrealized gain (loss).. (0.204) 0.048+ (0.010) (0.212) 0.524 (0.920)
-------- -------- -------- -------- -------- --------
Total income (loss)
from investment operations............. $ 0.061 $ 0.597 $ 0.589 $ 0.394 $ 1.155 $ (0.332)
-------- -------- -------- -------- -------- --------
Less distributions:
Dividends from investment income....... $ (0.261) $ (0.567) $ (0.589) $ (0.604) $ (0.625) $ (0.588)
Distributions from capital gains....... - - - - - -
Return of capital...................... - - - - - -
-------- -------- -------- -------- -------- --------
Net asset value, end of period.............. $ 10.070 $ 10.270 $ 10.240 $ 10.240 $ 10.450 $ 9.920
========= ========= ========= ========= ========= ========
Total return(2)............................. 0.61% 5.98% 5.93% 3.91% 11.93% (3.10%)
Ratios/Supplemental Data:
Net assets, end of period (000 omitted).. $ 77,642 $ 91,922 $102,565 $ 130,325 $ 143,600 $212,122
Ratio of total expenses to average net assets 0.91%(4)(7) 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 income to average net assets 5.26%(7) 5.38% 5.82% 5.90% 6.20% 5.70%
Portfolio turnover rate(3)............... - - 4% 28% 21% 33%
- -------------------------------------------------------------------------------------------------------------------------------
(1)During the period ended June 30,1999 and 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, a reduction in distribution
fees, a reduction in administrator fees, or a combination, thereof. Had such
action not been undertaken, net investment income per share and the ratios
would have been as follows:
1999(6) 1998 1997
---------------------------------
Net investment income per share........ $ 0.259 $ 0.546 $ 0.597
========= ========= =========
Ratios (As a percentage of average net assets):
Expenses........................... 1.02%(4)(7) 0.91%(4) 0.89%(4)
========= ========= =========
Expenses after custodian fee reduction - 0.90%(4) -
========= ========= =========
Net investment income.............. 5.15%(7) 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.
(6)For the six months ended June 30, 1999 (unaudited).
(7)Annualized.
(+)Per share amount is not in accordance with the net realized and unrealized
gain (loss) for the period because of the timing of sales of Fund shares and
the amounts per share of realized and unrealized gains and losses at such
times.
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT MANAGED INCOME TRUST
- -------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
Year Ended December 31,
- ---------------------------------------------------------------------------------------------------------------------------------
Wright U.S. Treasury Fund 1999(7) 1998 1997 1996(3) 1995 1994
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period........ $ 14.400 $ 13.950 $ 13.580 $ 14.710 $ 12.250 $ 14.360
-------- -------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment income(1)................. $ 0.356 $ 0.724 $ 0.721 $ 0.769 $ 0.880 $ 0.880
Net realized and unrealized gain (loss).. (0.843) 0.632 0.462 (0.973) 2.458 (2.110)
-------- -------- -------- -------- -------- --------
Total income (loss)
from investment operations............. $ (0.487) $ 1.356 $ 1.183 $ (0.204) $ 3.338 $ (1.230)
-------- -------- -------- -------- -------- --------
Less distributions:
Dividends from investment income......... $ (0.354) $ (0.741) $ (0.703) $ (0.756) $ (0.878) $ (0.880)
Distributions from capital gains......... (0.049) (0.165) (0.110) (0.170) - -
Return of capital........................ - - - - -
-------- -------- -------- -------- -------- --------
Total distributions.................... $ (0.403) $ (0.906) $ (0.813) $ (0.926) $ (0.878) $ (0.880)
-------- -------- -------- -------- -------- --------
Net asset value, end of period.............. $ 13.510 $ 14.400 $ 13.950 $ 13.580 $ 14.710 $ 12.250
========= ========= ========= ========= ========= =========
Total return(2)............................. (3.42%) 9.95% 9.09% (1.23%) 28.18% (8.66%)
Ratios/Supplemental Data:
Net assets, end of period (000 omitted).. $ 54,743 $ 67,256 $ 74,158 $ 54,978 $ 15,156 $ 16,658
Ratio of total expenses to average
net assets............................ 0.94%(5)(8) 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). 0.91%(5)(8) 0.90%(5) 0.87%(5) - - -
Ratio of net income to average net assets 5.15%(8) 5.09% 5.34% 5.50% 6.60% 6.90%
Portfolio turnover rate(4)............... - - 1% 65% 8% 1%
- --------------------------------------------------------------------------------------------------------------------------------
(1)During the period ended June 30, 1999 and 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, a reduction in distribution
fees by the distributor, a reduction in administrator fees, or a combination
thereof. Had such action not been undertaken, the net investment income per
share and the ratios would have been as follows:
1999(7) 1998 1997 1996 1995 1994
- -------------------------------------------------------------------------------------------------------------------------------
Net investment income per share............. $ 0.346 $ 0.721 $ 0.720 $ 0.769 $ 0.827 $ 0.854
========= ========= ========= ========= ========= =========
Ratios (as a percentage of average net assets):
Expenses .............................. 1.09%(5)(8) 0.96%(5) 1.02%(5) 0.90% 1.20% 1.10%
========= ========= ========= ========= ========= =========
Expenses after custodian fee reduction... 1.06%(5)(8) 0.92%(5) 0.89%(5) - - -
========= ========= ========= ========= ========= =========
Net investment income.................... 5.00%(8) 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.
(7)For the six months ended June 30, 1999 (unaudited).
(8)Annualized.
See notes to financial statements
</TABLE>
<PAGE>
Wright Managed Income Trust
- -------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
Year Ended December 31,
- -------------------------------------------------------------------------------------------------------------------------------
Wright Total Return Bond Fund 1999(4) 1998 1997 1996(3) 1995 1994
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period........ $ 13.310 $ 12.930 $ 12.500 $ 13.120 $ 11.430 $ 13.010
-------- -------- --------- -------- -------- --------
Income (loss) from investment operations:
Net investment income(1)................. $ 0.335 $ 0.680 $ 0.690 $ 0.720 $ 0.758 $ 0.740
Net realized and unrealized gain (loss).. (0.820) 0.524 0.427 (0.631) 1.685 (1.580)
-------- -------- --------- -------- -------- --------
Total income (loss)
from investment operations............. $ (0.485) $ 1.204 $ 1.117 $ 0.089 $ 2.443 $ (0.840)
--------- -------- --------- -------- -------- --------
Less distributions:
Dividends from investment income......... $ (0.335) $ (0.690) $ (0.687) $ (0.709) $ (0.753) $ (0.740)
Distributions from capital gains......... - (0.133) - - - -
In excess of net realized gain on investments - (0.001) - - - -
-------- -------- -------- -------- -------- --------
Total distributions.................... $ (0.335) $ (0.824) $ (0.687) $ (0.709) $ (0.753) $ (0.740)
-------- -------- -------- -------- -------- --------
Net asset value, end of period.............. $ 12.490 $ 13.310 $ 12.930 $ 12.500 $ 13.120 $ 11.430
========= ========= ========= ========= ========= =========
Total return(2)............................. (3.69%) 9.56% 9.25% 0.87% 21.97% (6.57%)
Ratios/Supplemental Data:
Net assets, end of period (000 omitted).. $104,120 $115,937 $ 80,004 $ 91,382 $ 122,762 $143,497
Ratio of total expenses to average net assets 0.90%(5) 0.90% 0.90% 0.80% 0.80% 0.80%
Ratio of net income to average net assets 5.24%(5) 5.18% 5.50% 5.70% 6.20% 6.10%
Portfolio turnover rate.................. 19% 26% 34% 96% 50% 32%
- ------------------------------------------------------------------------------------------------------------------------------
(1)For the period ended June 30, 1999, the investment adviser reduced its fee.
Had such action not been undertaken, net investment income per share and the
ratios would have been as follows:
1999(4)
Net investment income per share........ $ 0.332
=========
Ratios (As a percentage of average net assets):
Expenses........................... 0.94%(5)
=========
Net investment income.............. 5.28%(5)
=========
- ----------------------------------------------------------------------------------------------------------------------------------
(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)For the six months ended June 30, 1999 (unaudited).
(5)Annualized.
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT MANAGED INCOME TRUST
- -------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
Year Ended December 31,
- ------------------------------------------------------------------------------------------------------------------------------
Wright Current Income Fund 1999(5) 1998 1997 1996 1995 1994
- ------------------------------------------------------------------------------------------------------------------------------
Standard Shares
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period........ $ 10.660 $ 10.630 $ 10.430 $ 10.670 $ 9.710 $ 10.750
-------- -------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment income(1)................. $ 0.279 $ 0.646 $ 0.658 $ 0.674 $ 0.696 $ 0.690
Net realized and unrealized gain (loss).. (0.353) 0.028 0.206 (0.239) 0.955 (1.040)
-------- -------- -------- -------- -------- --------
Total income (loss)
from investment operations........... $ (0.074) $ 0.674 $ 0.864 $ 0.435 $ 1.651 $ (0.350)
-------- -------- -------- -------- -------- --------
Less distributions:
Dividends from investment income......... $ (0.306) $ (0.643) $ (0.664) $ (0.675) $ (0.691) $ (0.690)(*)
Distributions from capital gains......... - - -
In excess of net investment income....... - (0.001) - - - -
-------- -------- -------- -------- -------- --------
Total distributions.................. $ (0.306) $ (0.644) $ (0.664) $ (0.675) $ (0.691) $ (0.690)
-------- -------- -------- -------- -------- --------
Net asset value, end of period.............. $ 10.280 $ 10.660 $ 10.630 $ 10.430 $ 10.670 $ 9.710
========= ========= ========= ========= ========= =========
Total return(2)............................. (0.71%) 6.51% 8.56% 4.31% 17.46% (3.30%)
Ratios/Supplemental Data:
Net assets, end of period (000 omitted).. $ 80,452 $ 90,262 $ 76,217 $ 64,623 $ 66,345 $84,178
Ratio of total expenses to average net assets 0.90%(4)(6) 0.90%(4) 0.89%(4) 0.90%(4) 0.90%(4) 0.80%
Ratio of net income to average net assets 5.93%(4)(6) 6.03% 6.44% 6.50% 6.80% 6.90%
Portfolio turnover rate(3)............... - - 3.00% 9.00% 26.00% 10.00%
- -------------------------------------------------------------------------------------------------------------------------------
(*)Includes distribution in excess of net investment income of $.00013 per share.
(1)For the period ended June 30, 1999 and for the years ended December 31, 1998
and 1997, the distributor and/or the administrator reduced its fees. Had such
action not been undertaken, net investment income per share and the ratios
would have been as follows:
1999(5) 1998 1997
-------- -------- --------
Net investment income per share........ $ 0.283 $ 0.644 $ 0.652
========= ========= =========
Ratios (As a percentage of average net assets):
Expenses........................... 0.98%(4)(6) 0.92%(4) 0.95%(4)
========= ========= =========
Net investment income.............. 6.01%(4)(6) 6.01% 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)For the six months ended June 30, 1999 (unaudited).
(6)Annualized.
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT MANAGED INCOME TRUST
- -------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
Year Ended December 31,
- -------------------------------------------------------------------------------------------------------------------------------
Wright Current Income Fund - continued 1999(6) 1998 1997(*)
- -------------------------------------------------------------------------------------------------------------------------------
Institutional Shares
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of period........ $ 10.150 $ 10.120 $ 10.000
---------- ---------- ---------
Income (loss) from investment operations:
Net investment income(1)................. $ 0.280 $ 0.619 $ 0.313
Net realized and unrealized gain (loss).. (0.340) 0.026 0.120
---------- --------- ----------
Total income (loss)
from investment operations........... $ (0.060) $ 0.645 $ 0.433
--------- -------- --------
Less distributions:
Dividends from investment income......... $ (0.300) $ (0.615) $ (0.313)(5)
Distributions from capital gains......... -
Return of capital........................ - -
--------- -------- --------
Total distributions.................. $ (0.300) $ (0.615) $ (0.313)
---------- -------- --------
Net asset value, end of period.............. $ 9.790 $ 10.150 $ 10.120
========= ========= =========
Total return(2)............................. (0.62%) 6.56% 4.40%
Ratios/Supplemental Data:
Net assets, end of period (000 omitted).. $ 22,479 $ 23,231 $ 21,801
Ratio of total expenses to average net assets 0.76%(3)(4) 0.75%(3) 0.48%(3)(4)
Ratio of net income to average net assets 6.08%(4) 6.11% 4.70%(4)
Portfolio turnover rate(3)............... - - 2.00%
- -----------------------------------------------------------------------------------------------------------------------------------
(1)For the period ended June 30, 1999 and for the years ended December 31, 1998
and 1997, the operating expenses of the fund were reduced by a reduction in
distribution fees by the distributor and/or the administrator. Had such
action not been undertaken, net investment income per share and the ratios
would have been as follows:
1999(6) 1998 1997(*)
- ---------------------------------------------------------------------------------------------------------------------------
Net investment income per share.......... $ 0.282 $ 0.644 $ 0.652
========= ========= =========
Ratios (as a percentage of average net assets):
Expenses............................... 0.80%(3)(4) 0.92%(3) 0.95%(3)
========= ========= =========
Net investment income.................. 6.12%(4) 6.01% 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)Includes each fund's share of its corresponding portfolio's allocated
expenses.
(4)Annualized.
(5)Includes distribution in excess of net investment income of $0.00001 per share.
(6)For the six months ended June 30, 1999 (unaudited).
(*)For the period from July 7, 1997 (inception of offering of institutional
shares) to December 31, 1997.
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT MANAGED INCOME TRUST
- ------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited)
(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)
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 June 30, 1999 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 marke
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:
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 --
- -------------------------------------------------------------------------------
<PAGE>
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 current 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 June 30, 1999, only WCIF had an
institutional share class.
H. Interim Financial Information - The interim financial statements relating
to June 30, 1999 and for the six month period then ended have not been
audited by independent certified public accountants, but in the opinion of
the Trust's management, reflect all adjustments, consisting only of
normally recurring adjustments, necessary for the fair presentation of the
financial statements.
(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.
(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 six months ended June 30, 1999, for WTMM, and WTRB the effective annual
rate was 0.35% and 0.41%, respectively. 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. To enhance the
net income of the funds, Wright made a preliminary reduction of its investment
adviser fee by $93,179 and $21,625 for WTMM and WTRB, respectively.
Additionally, $14,600, $10,200 and $10,250 of expenses were allocated to the
investment adviser on a preliminary basis for WNTB, WUSTB and WCIF,
respectively.
The Trust also has engaged Eaton Vance Management (Eaton Vance) to act as
administrator of the Trust. Under the Administration Agreement, Eaton Vance is
responsible for managing the business affairs of the Trust and is compensated
based upon a percentage of average daily net assets which rate is reduced as
average daily net assets exceed certain levels. For the six months ended June
30, 1999, 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.
<PAGE>
(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 preliminary reduction of its fee by $34,797, $37,766, and $17,946,
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 six months ended June 30, 1999,
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>
Six Months Ended Year Ended
June 30, 1999 (Unaudited) December 31, 1998
---------------------------------------------------------
Shares Amount Shares Amount
- ------------------------------------------------------------------------------------------------------------------------
Wright U.S. Government Near Term Fund --
<S> <C> <C> <C> <C>
Sales............................................... 724,074 $ 7,286,190 1,605,556 $ 16,447,345
Issued to shareholders in payment of
distributions declared............................. 125,463 1,044,421 314,121 3,163,303
Redemptions.......................................... (2,083,637) (20,874,090) (2,989,009) (30,604,406)
---------- ------------- ---------- -------------
Net decrease..................................... (1,234,100) $ (12,543,479) (1,069,332) $ (10,993,758)
============ ================ ============ ================
Wright U.S. TREASURY Fund --
Sales................................................ 453,938 $ 6,332,710 1,302,718 $ 18,684,432
Issued to shareholders in payment
of distributions declared.......................... 89,765 1,060,476 231,734 3,313,736
Redemptions.......................................... (1,161,637) (15,889,194) (2,179,531) (31,426,843)
---------- ------------- ---------- -------------
Net decrease..................................... (617,934) $ (8,496,008) (645,079) $ (9,428,675)
============ ================ ============ ================
Wright Total Return Bond Fund --
Sales................................................ 2,136,310 $ 27,462,470 3,355,655 $ 44,394,191
Issued to shareholders in payment
of distributions declared.......................... 171,030 1,860,246 344,502 4,544,209
Redemptions.......................................... (2,676,855) (33,884,060) (1,178,486) (15,541,882)
---------- ------------- ---------- -------------
Net increase (decrease).......................... (369,515) $ (4,561,344) 2,521,671 $ 33,396,518
============ ================ ============ ================
Wright Current Income Fund -- Standard Shares
Sales................................................ 969,707 $ 10,142,213 2,263,717 $ 24,121,027
Issued to shareholders in payment
of distributions declared.......................... 148,902 1,299,438 310,036 3,306,097
Redemptions.......................................... (1,808,399) (18,729,762) (1,275,036) (13,585,460)
---------- ------------- ---------- -------------
Net increase (decrease).......................... (689,790) $ (7,288,111) 1,298,717 $ 13,841,664
============ ================ ============ ================
Wright Current Income Fund -- Institutional Shares
Issued to shareholders in payment
of distributions declared.......................... 57,521 $ 577,323 134,484 $ 1,363,651
---------- ------------- ---------- -------------
Net increase..................................... 57,521 $ 577,323 134,484 $ 1,363,651
============ ================ ============ ================
</TABLE>
<PAGE>
(6) INVESTMENT TRANSACTIONS
The Trust invests primarily in debt securities. The ability of the issuers
of the debt securities held by the Trust to meet their obligations may be
affected by economic developments in a specific industry or municipality.
Purchases and sales and maturities of investments, other than short-term
obligations, were as follows:
Six Months Ended June 30, 1999
Wright Total
Return Bond Fund
- -------------------------------------------------------------------------------
(Unaudited)
Purchases --
Non-U.S. Obligations $ 11,323,146
==============
U.S. Gov't Obligations $ 11,542,051
==============
Sales --
Non-U.S. Gov't Obligation $ 3,195,132
==============
U.S. Gov't Obligations $ 17,881,996
==============
Increases and decreases in each fund's investment in its corresponding
Portfolio for the six months ended June 30, 1999 were as follows:
(Unaudited) WNTB WUSTB WCIF
- -------------------------------------------------------------------------------
Increases $ 7,390,835 $ 6,366,941 $10,206,894
Decreases (22,192,008) (16,608,489) (19,994,239)
(7) FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES
The cost and unrealized appreciation (depreciation) at June 30, 1999, as
computed on a federal income tax basis, are as follows:
Wright Total Return
(Unaudited) Bond Fund
- ------------------------------------------------------------------------------
Aggregate cost............................ $ 105,408,146
=============
Gross unrealized appreciation............. $ 821,177
Gross unrealized depreciation............. (3,420,159)
------------
Net unrealized depreciation............... $ (2,598,982)
=============
<PAGE>
(8) 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 six months ended June 30, 1999.
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
- ------------------------------------------------------------------------------
Selected Blue Chip Equities Portfolio (SBCP)
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1999 (Unaudited)
- ------------------------------------------------------------------------------
ASSETS:
Investments -
Identified cost....................... $103,145,048
Unrealized appreciation............... 38,507,886
------------
Total investments, at value (Note 1A). $141,652,934
Cash.................................... 1,697
Dividends and interest receivable....... 119,661
Deferred organization expenses (Note 1C) 17,948
------------
Total Assets.......................... $141,792,240
------------
LIABILITIES:
Payable for investments purchased....... $ 1,694,810
Accrued expenses and other liabilities.. 16,542
------------
Total Liabilities...................... $ 1,711,352
------------
NET ASSETS APPLICABLE TO
INVESTORS' INTEREST IN PORTFOLIO........ $140,080,888
=============
SOURCES OF NET ASSETS:
Net proceeds from capital contributions and
withdrawals............................ $101,573,002
Unrealized appreciation of investments
(computed on the basis of identified cost) 38,507,886
------------
Total................................. $140,080,888
=============
See notes to financial statements
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1999 (Unaudited)
- -------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1G):
Income -
Dividends.............................. $ 1,264,124
Interest............................... 35,446
------------
Total income.......................... $ 1,299,570
------------
Expenses -
Investment adviser fee (Note 2)........ $ 503,649
Administrator fee (Note 2)............. 115,911
Compensation of Trustees not affiliated with
the investment adviser or administrator 1,000
Custodian fee (Note 1D)................ 37,004
Interest expense....................... 17,231
Audit fees............................. 29,998
Legal.................................. 918
Amortization of organization expenses (Note 1C) 2,862
Printing............................... 2,723
------------
Total expenses........................ $ 711,296
------------
Deduct -
Reduction of custodian fee (Note 1D).. 1,217
------------
Net expenses..................... $ 710,079
------------
Net investment income......... $ 589,491
------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain on investment transactions
(identified cost basis)................ $21,681,443
Change in unrealized appreciation
(depreciation) of investments ......... (17,105,509)
------------
Net realized and unrealized gain
on investments......................... $ 4,575,934
------------
Net increase in net assets
from operations.................... $ 5,165,425
=============
See notes to financial statements
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
- -------------------------------------------------------------------------------
Selected Blue Chip Equities Portfolio (SBCP)
<TABLE>
<CAPTION>
Six Months Ended Year Ended
STATEMENTS OF CHANGES IN NET ASSETS June 30, 1999 Dec. 31, 1998
- --------------------------------------------------------------------------------------------------------------------------------
(Unaudited)
INCREASE (DECREASE) IN NET ASSETS:
From operations -
<S> <C> <C>
Net investment income...................................................... $ 589,491 $ 2,011,687
Net realized gain on investments........................................... 21,681,443 15,538,127
Change in unrealized appreciation (depreciation)
of investments........................................................... (17,105,509) (20,336,710)
------------ ------------
Net increase (decrease) in net assets from operations.................... $ 5,165,425 $ (2,786,896)
------------ ------------
Capital transactions -
Contributions.............................................................. $ 21,985,098 $ 40,294,485
Withdrawals................................................................ (108,726,326) (75,343,029)
------------ ------------
Decrease in net assets resulting from capital transactions................... $(86,741,228) $(35,048,544)
------------ ------------
Net decrease in net assets................................................... $(81,575,803) $(37,835,440)
NET ASSETS:
At beginning of period....................................................... 221,656,691 259,492,131
------------ ------------
At end of period............................................................. $140,080,888 $ 221,656,691
============= =============
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
- ------------------------------------------------------------------------------
Junior Blue Chip Equities Portfolio (JBCP)
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1999 (Unaudited)
- -------------------------------------------------------------------------------
ASSETS:
Investments -
Identified cost....................... $17,342,866
Unrealized appreciation............... 555,112
------------
Total investments, at value (Note 1A). $17,897,978
Cash.................................... 89,231
Dividends and interest receivable....... 24,868
Deferred organization expenses (Note 1C) 17,948
------------
Total Assets.......................... $18,030,025
------------
LIABILITIES:
Accrued expenses and other liabilities.. $ 10,868
------------
Total Liabilities...................... $ 10,868
------------
NET ASSETS APPLICABLE TO
INVESTORS' INTEREST IN PORTFOLIO........ $18,019,157
=============
SOURCES OF NET ASSETS:
Net proceeds from capital contributions and
withdrawals............................ $17,464,045
Unrealized appreciation of investments
(computed on the basis of identified cost) 555,112
------------
Total................................. $18,019,157
=============
See notes to financial statements
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1999 (Unaudited)
- -------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1G):
Income -
Dividends.............................. $ 134,314
Interest............................... 6,724
------------
Total income.......................... $ 141,038
------------
Expenses -
Investment adviser fee (Note 2)........ $ 64,611
Administrator fee (Note 2)............. 23,500
Compensation of Trustees not affiliated with
the investment adviser or administrator 917
Custodian fee (Note 1D)................ 19,968
Interest expense....................... 3,134
Audit fees............................. 22,992
Legal services......................... 918
Amortization of organization expenses
(Note 1C)............................. 2,862
Miscellaneous.......................... 1,021
------------
Total expenses........................ $ 139,923
------------
Deduct -..............................
Preliminary reduction of investment adviser
fee (Note 2)....................... $ 20,287
Reduction of custodian fee (Note 1D).. 2,193
------------
Total deductions................... $ 22,480
------------
Net expenses..................... $ 117,443
------------
Net investment income......... $ 23,595
------------
REALIZED AND UNREALIZED LOSS
ON INVESTMENTS:
Net realized loss on investment transactions
(identified cost basis)................ $ (291,391)
Change in unrealized appreciation
(depreciation) of investments.......... (875,499)
------------
Net realized and unrealized loss on
investments............................ $(1,166,890)
------------
Net decrease in net assets
from operations.................... $(1,143,295)
=============
See notes to financial statements
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
- ------------------------------------------------------------------------------
Junior Blue Chip Equities Portfolio (JBCP)
<TABLE>
<CAPTION>
Six Months Ended Year Ended
STATEMENTS OF CHANGES IN NET ASSETS June 30, 1999 Dec. 31, 1998
- ----------------------------------------------------------------------------------------------------------------------------------
(Unaudited)
INCREASE (DECREASE) IN NET ASSETS:
From operations -
<S> <C> <C>
Net investment income...................................................... $ 23,595 $ 110,147
Net realized gain (loss) on investments.................................... (291,391) 154,874
Change in unrealized appreciation (depreciation)
of investments........................................................... (875,499) (2,056,708)
------------ ------------
Net decrease in net assets from operations............................... $ (1,143,295) $ (1,791,687)
------------ ------------
Capital transactions -
Contributions.............................................................. $ 1,784,806 $ 10,001,530
Withdrawals................................................................ (16,925,841) (7,395,707)
------------ ------------
Increase (decrease) in net assets
resulting from capital transactions........................................ $(15,141,035) $ 2,605,823
------------ ------------
Net increase (decrease) in net assets........................................ $(16,284,330) $ 814,136
NET ASSETS:
At beginning of period....................................................... 34,303,487 33,489,351
------------ ------------
At end of period............................................................. $ 18,019,157 $ 34,303,487
============= =============
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
- -------------------------------------------------------------------------------
International Blue Chip Equities Portfolio (IBCP)
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1999 (Unaudited)
- -------------------------------------------------------------------------------
ASSETS:
Investments -
Identified cost....................... $133,399,728
Unrealized appreciation............... 16,822,210
------------
Total investments, at value (Note 1A). $150,221,938
Foreign currency at value
(identified cost $1,928,273)........... 1,975,327
Cash.................................... 378
Receivable for investment sold.......... 2,914,334
Receivable for open forward foreign currency
exchange contracts (Note 1H & 5)....... 15,159
Dividends and interest receivable....... 291,449
Deferred organization expenses (Note 1C) 17,948
Other assets............................ 246,884
------------
Total Assets.......................... $155,683,417
------------
LIABILITIES:
Payable for investments purchased....... $ 2,838,570
Accrued expenses and other liabilities.. 50,207
------------
Total Liabilities...................... $ 2,888,777
------------
NET ASSETS APPLICABLE TO
INVESTORS' INTEREST IN PORTFOLIO........ $152,794,640
=============
SOURCES OF NET ASSETS:
Net proceeds from capital contributions and
withdrawals............................ $136,019,484
Unrealized appreciation of investments
and foreign currency transactions (computed
on the basis of identified cost)....... 16,775,156
------------
Total................................. $152,794,640
=============
See notes to financial statements
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1999 (Unaudited)
- -------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1G):
Income -
Dividends.............................. $ 1,993,619
Interest............................... 58,905
Less: Foreign taxes.................... (227,754)
------------
Total income.......................... $ 1,824,770
------------
Expenses -
Investment adviser fee (Note 2)........ $ 687,466
Administrator fee (Note 2)............. 119,151
Compensation of Trustees not affiliated with
the investment adviser or administrator 980
Custodian fee (Note 1D)................ 148,215
Interest expense....................... 25,606
Audit fees............................. 29,998
Amortization of organization expenses
(Note 1C)............................. 2,862
Miscellaneous.......................... 3,511
------------
Total expenses........................ $ 1,017,789
------------
Net investment income................ $ 806,981
------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain on investment and foreign
currency transactions(identified cost basis)$23,789,884
Change in unrealized appreciation (depreciation)
of investments and translation of assets and
liabilities in foreign currencies...... (24,957,029)
------------
Net realized and unrealized loss on
investments and foreign currency....... $(1,167,145)
------------
Net decrease in net assets
from operations.................... $ (360,164)
=============
See notes to financial statements
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
- -------------------------------------------------------------------------------
International Blue Chip Equities Portfolio (IBCP)
<TABLE>
<CAPTION>
Six Months Ended Year Ended
STATEMENTS OF CHANGES IN NET ASSETS June 30, 1999 Dec. 31, 1998
- ------------------------------------------------------------------------------------------------------------------------------
(Unaudited)
INCREASE (DECREASE) IN NET ASSETS:
From operations -
<S> <C> <C>
Net investment income...................................................... $ 806,981 $ 1,985,552
Net realized gain on investments........................................... 23,789,884 20,726,522
Change in unrealized appreciation (depreciation) of investments............ (24,957,029) (11,296,007)
------------ ------------
Net increase (decrease) in net assets from operations.................... $ (360,164) $ 11,416,067
------------ ------------
Capital transactions -
Contributions.............................................................. $ 42,291,250 $110,766,485
Withdrawals................................................................ (101,366,988) (166,998,630)
------------ ------------
Decrease in net assets resulting from capital transactions................... $(59,075,738) $(56,232,145)
------------ ------------
Net decrease in net assets................................................... $(59,435,902) $(44,816,078)
NET ASSETS:
At beginning of period....................................................... 212,230,542 257,046,620
------------ ------------
At end of period............................................................. $152,794,640 $ 212,230,542
============= =============
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
- -------------------------------------------------------------------------------
U.S. Government Near Term Portfolio (NTBP)
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1999 (Unaudited)
- -------------------------------------------------------------------------------
ASSETS:
Investments -
Identified cost....................... $76,657,493
Unrealized depreciation............... (161,857)
------------
Total investments, at value (Note 1A). $76,495,636
Cash.................................... 173,326
Interest receivable..................... 1,299,832
Deferred organization expenses (Note 1C) 17,001
------------
Total assets.......................... $77,985,795
------------
LIABILITIES:
Accrued expenses and other liabilities.. $ 11,718
------------
NET ASSETS APPLICABLE TO
INVESTORS' INTEREST IN PORTFOLIO........ $77,974,077
=============
SOURCES OF NET ASSETS:
Net proceeds from capital contributions and
withdrawals............................ $78,135,934
Unrealized depreciation of investments
(computed on the basis of identified cost) (161,857)
------------
Total................................. $77,974,077
=============
See notes to financial statements
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1999 (Unaudited)
- -------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1G):
Income -
Interest Income........................ $ 2,601,066
------------
Expenses -
Investment adviser fee (Note 2)........ $ 169,261
Administrator fee (Note 2)............. 42,315
Compensation of Trustees not affiliated with
the investment adviser or administrator 983
Custodian fee (Note 1D)................ 19,031
Transfer agent fee..................... 9,912
Audit fees............................. 8,265
Legal fees............................. 735
Printing............................... 1,117
Amortization of organization expenses
(Note 1C)............................. 2,878
------------
Total expenses........................ $ 254,497
------------
Deduct -..............................
Reduction of custodian fee (Note 1D).. 2,886
------------
Net expenses....................... $ 251,611
------------
Net investment income............ $ 2,349,455
------------
REALIZED AND UNREALIZED LOSS
ON INVESTMENTS:
Net realized loss on investment transactions
(identified cost basis)................ $ (53,189)
Net change in unrealized depreciation
of investments......................... (1,720,990)
------------
Net realized and unrealized loss
on investments......................... $(1,774,179)
------------
Net increase in net assets
from operations.................... $ 575,276
=============
See notes to financial statements
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
- -------------------------------------------------------------------------------
U.S. Government Near Term Portfolio (NTBP)
<TABLE>
<CAPTION>
Six Months Ended Year Ended
STATEMENTS OF CHANGES IN NET ASSETS June 30, 1999 Dec. 31, 1998
- -----------------------------------------------------------------------------------------------------------------------------
(Unaudited)
INCREASE (DECREASE) IN NET ASSETS:
From operations -
<S> <C> <C>
Net investment income...................................................... $ 2,349,455 $ 5,724,793
Net realized loss on investments........................................... (53,189) (45,686)
Change in unrealized appreciation (depreciation) of investments............ (1,720,990) 580,237
------------ ------------
Net increase in net assets from operations............................... $ 575,276 $ 6,259,344
------------ ------------
Capital transactions -
Contributions.............................................................. $ 7,390,835 $ 17,618,408
Withdrawals................................................................ (22,192,009) (34,539,216)
------------ ------------
Decrease in net assets resulting from capital transactions................... $(14,801,174) $(16,920,808)
------------ ------------
Net decrease in net assets................................................... $(14,225,898) $(10,661,464)
NET ASSETS:
At beginning of period....................................................... 92,199,975 102,861,439
------------ ------------
At end of period............................................................. $ 77,974,077 $ 92,199,975
============= =============
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
- -------------------------------------------------------------------------------
U.S. Treasury Portfolio (USTBP)
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1999 (Unaudited)
- ------------------------------------------------------------------------------
ASSETS:
Investments -
Identified cost....................... $51,177,651
Unrealized appreciation............... 878,505
------------
Total investments, at value (Note 1A). $52,056,156
Cash.................................... 2,120,778
Interest receivable..................... 790,267
Deferred organization expenses (Note 1C) 16,972
------------
Total assets.......................... $54,984,173
------------
LIABILITIES:
Accrued expenses and other liabilities.. $ 7,801
------------
NET ASSETS APPLICABLE TO
INVESTORS' INTEREST IN PORTFOLIO........ $54,976,372
=============
SOURCES OF NET ASSETS:
Net proceeds from capital contributions and
withdrawals............................ $54,097,867
Unrealized appreciation of investments
(computed on the basis of identified cost) 878,505
------------
Total................................. $54,976,372
=============
See notes to financial statements
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1999 (Unaudited)
- -------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1G):
Income -
Interest Income........................ $ 1,869,904
------------
Expenses -
Investment adviser fee (Note 2)........ $ 123,776
Administrator fee (Note 2)............. 30,944
Compensation of Trustees not affiliated with
the investment adviser or administrator 983
Custodian fee (Note 1D)................ 17,210
Audit fees............................. 8,080
Legal fees............................. 735
Amortization of organization expenses
(Note 1C)............................. 2,887
Miscellaneous.......................... 6,847
------------
Total expenses........................ $ 191,462
------------
Deduct -..............................
Reduction of custodian fee (Note 1D).. 9,750
------------
Net expenses....................... $ 181,712
------------
Net investment income............ $ 1,688,192
------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain on investment transactions
(identified cost basis)................ $ 392,786
Net change in unrealized appreciation
(depreciation) of investments.......... (4,192,715)
------------
Net realized and unrealized loss
on investments......................... $(3,799,929)
------------
Net decrease in net assets
from operations.................... $(2,111,737)
=============
See notes to financial statements
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
- ------------------------------------------------------------------------------
U.S. Treasury Portfolio (USTBP)
<TABLE>
<CAPTION>
Six Months Ended Year Ended
STATEMENTS OF CHANGES IN NET ASSETS June 30, 1999 Dec. 31, 1998
- --------------------------------------------------------------------------------------------------------------------------------
(Unaudited)
INCREASE (DECREASE) IN NET ASSETS:
From operations -
<S> <C> <C>
Net investment income...................................................... $ 1,688,192 $ 3,926,971
Net realized gain on investments........................................... 392,786 984,728
Change in unrealized appreciation (depreciation) of investments............ (4,192,715) 2,386,702
------------ ------------
Net increase (decrease) in net assets from operations.................... $ (2,111,737) $ 7,298,401
------------ ------------
Capital transactions -
Contributions.............................................................. $ 6,366,945 $ 18,675,207
Withdrawals................................................................ (16,608,489) (33,182,454)
------------ ------------
Decrease in net assets resulting from capital transactions................... $(10,241,544) $(14,507,247)
------------ ------------
Net decrease in net assets................................................... $(12,353,281) $ (7,208,846)
NET ASSETS:
At beginning of period....................................................... 67,329,653 74,538,499
------------ ------------
At end of period............................................................. $ 54,976,372 $ 67,329,653
============= =============
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
- -------------------------------------------------------------------------------
Current Income Portfolio (CIFP)
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1999 (Unaudited)
- -------------------------------------------------------------------------------
ASSETS:
Investments -
Identified cost....................... $107,067,001
Unrealized depreciation............... (1,632,190)
------------
Total investments, at value (Note 1A). $105,434,811
Cash.................................... 4,347
Interest receivable..................... 590,092
Deferred organization expenses (Note 1C) 16,797
------------
Total assets.......................... $106,046,047
------------
LIABILITIES:
Payable for investments purchased....... $ 2,574,463
Accrued management fees................. 12,419
Accrued expenses and other liabilities.. 16,107
------------
Total liabilities..................... $ 2,602,989
------------
NET ASSETS APPLICABLE TO
INVESTORS' INTEREST IN PORTFOLIO........ $103,443,058
=============
SOURCES OF NET ASSETS:
Net proceeds from capital contributions and
withdrawals............................ $105,075,248
Unrealized depreciation of investments
(computed on the basis of identified cost) (1,632,190)
------------
Total................................. $103,443,058
=============
See notes to financial statements
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1999 (Unaudited)
- -------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1G):
Income -
Interest Income........................ $ 3,715,044
------------
Expenses -
Investment adviser fee (Note 2)........ $ 220,917
Administrator fee (Note 2)............. 51,552
Compensation of Trustees not affiliated with
the investment adviser or administrator 917
Custodian fee (Note 1D)................ 31,540
Audit fees............................. 20,747
Legal fees............................. 735
Amortization of organization expenses
(Note 1C)............................. 2,887
Miscellaneous.......................... 354
------------
Total expenses........................ $ 329,649
------------
Deduct -..............................
Preliminary allocation of expense to the
investment adviser (Note 2).......... $ 10,882
Reduction of custodian fee (Note 1D).. 826
------------
Total deductions................... $ 11,708
------------
Net expenses....................... $ 317,941
------------
Net investment income............ $ 3,397,103
------------
REALIZED AND UNREALIZED LOSS
ON INVESTMENTS:
Net realized loss on investment transactions
(identified cost basis)................ $ (98,697)
Net change in unrealized depreciation
of investments......................... (3,774,755)
------------
Net realized and unrealized loss
on investments......................... $(3,873,452)
------------
Net decrease in net assets
from operations.................... $ (476,349)
=============
See notes to financial statements
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
- -------------------------------------------------------------------------------
Current Income Portfolio (CIFP)
<TABLE>
<CAPTION>
Six Months Ended Year Ended
STATEMENTS OF CHANGES IN NET ASSETS June 30, 1999 Dec. 31, 1998
- -----------------------------------------------------------------------------------------------------------------------------
(Unaudited)
INCREASE (DECREASE) IN NET ASSETS:
From operations -
<S> <C> <C>
Net investment income...................................................... $ 3,397,103 $ 6,757,613
Net realized loss on investments........................................... (98,697) (142,545)
Change in unrealized appreciation (depreciation) of investments............ (3,774,755) 406,744
------------ ------------
Net increase (decrease) in net assets from operations.................... $ (476,349) $ 7,021,812
------------ ------------
Capital transactions -
Contributions.............................................................. $ 10,206,894 $ 24,506,099
Withdrawals................................................................ (19,994,239) (15,586,545)
------------ ------------
Increase (decrease) in net assets resulting from capital transactions........ $ (9,787,345) 8,919,554
------------ ------------
Net increase (decrease) in net assets........................................ $(10,263,694) $ 15,941,366
NET ASSETS:
At beginning of period....................................................... 113,706,752 97,765,386
------------ ------------
At end of period............................................................. $103,443,058 $113,706,752
============= =============
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
- -------------------------------------------------------------------------------
Supplementary Data
Year Ended December 31
- -------------------------------------------------------------------------------
Selected Blue Chip Equities Portfolio (SBCP) 1999(2) 1998 1997(3)
- -------------------------------------------------------------------------------
Ratios (As of percentage of average daily net assets):
Net expenses(1) 0.86%+ 0.77% 0.66%+
Net investment income 0.71%+ 0.80% 1.08%+
Portfolio Turnover 80% 78% 28%
Net assets,end of period (000 omitted) $140,081 $221,657 $259,492
- -------------------------------------------------------------------------------
+ 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 not have been
affected for the period ended June 30, 1999.
2 For the six months ended June 30, 1999 (unaudited).
3 For the period from start of business, May 2, 1997 to December 31, 1997.
Year Ended December 31
- -------------------------------------------------------------------------------
Junior Blue Chip Equities Portfolio (JBCP) 1999(2) 1998 1997(3)
- -------------------------------------------------------------------------------
Ratios (As of percentage of average daily net assets)++:
Net expenses(1) 1.02%+ 0.90% 0.48%+
Net investment income 0.20%+ 0.32% 0.99%+
Portfolio Turnover 10% 49% 36%
Net assets, end of period (000 omitted) $18,019 $34,303 $33,489
- -------------------------------------------------------------------------------
++ For the period presented, the operating expenses of JBCP reflect a reduction
of the investment adviser fee. Had such action not been taken, the ratios would
have been as follows:
1999(2) 1998 1997(3)
-------- ------- --------
Ratios (As of percentage of average daily net assets):
Expenses 0.03%+ 0.93% 0.80%+
Net investment income 1.19%+ 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
1.00% for the six months ended June 30, 1999, 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.
2 For the six months ended June 30, 1999 (unaudited).
3 For the period from the start of business, May 2, 1997 to December 31, 1997.
See notes to financial statements
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
- -------------------------------------------------------------------------------
Supplementary Data
Year Ended December 31
- -------------------------------------------------------------------------------
International Blue Chip Equities
Portfolio (IBCP) 1999(1) 1998 1997(2)
- -------------------------------------------------------------------------------
Ratios (As of percentage of average daily net assets):
Net expenses 1.14%+ 1.01% 0.90%+
Net investment income 0.90%+ 0.77% 0.95%+
Portfolio Turnover 38% 66% 37%
Net assets, end of period (000 omitted)$152,795 $212,231 $257,047
- -------------------------------------------------------------------------------
+ Annualized.
1 For the six months ended June 30, 1999 (unaudited).
2 For the period from the start of business, May 2, 1997 to December 31, 1997.
Year Ended December 31
- -------------------------------------------------------------------------------
U.S. Government Near Term Portfolio (NTBP) 1999(2) 1998 1997(3)
- -------------------------------------------------------------------------------
Ratios (As a percentage of average daily net assets):
Net expenses(1) 0.60%+ 0.57% 0.46%+
Net investment income 5.55%+ 5.68% 6.24%+
Portfolio Turnover 23% 10% 0%
Net assets,end of period(000 omitted) $77,974 $92,200 $102,861
- -------------------------------------------------------------------------------
+ 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
0.59% for the six month period ended June 30, 1999, 0.56% 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.
2 For the six months ended June 30, 1999 (unaudited).
3 For the period from the start of business, May 2, 1997 to December 31, 1997.
See notes to financial statements
<PAGE>
Wright Blue Chip Master Portfolio Trust
- ------------------------------------------------------------------------------
Supplementary Data
Year Ended December 31
- ------------------------------------------------------------------------------
U.S. Treasury Portfolio (USTBP) 1999(2) 1998 1997(3)
- ------------------------------------------------------------------------------
Ratios (As a percentage of average daily net assets)++:
Net expenses(1) 0.62%+ 0.57% 0.56%+
Net investment income 5.46%+ 5.45% 6.11%+
Portfolio Turnover 25% 7% 0%
Net assets,end of period (000 omitted) $54,976 $67,330 $74,536
- -------------------------------------------------------------------------------
+ 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
0.59% for the six month period ended June 30, 1999, 0.54% for the year ended
December 31, 1998, and 0.41% for the period from the start of business May
2, 1997 to December 31, 1997.
2 For the six months ended June 30, 1999 (unaudited).
3 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 USTBP
reflect an allocation of expenses to the investment adviser. Had such action
not been taken, the ratios would have been as follows:
1998
-------
Ratios (As of percentage of average daily net assets):
Expenses 0.58%
Net Expenses 0.55%
Net Investment Income 5.44%
- -------------------------------------------------------------------------------
Year Ended December 31
- ------------------------------------------------------------------------------
Current Income Portfolio (CIFP) 1999(2) 1998 1997(3)
- ------------------------------------------------------------------------------
Ratios (As a percentage of average daily net assets)++:
Net expenses(1) 0.58%+ 0.57% 0.48%+
Net investment income 6.23%+ 6.33% 6.66%+
Portfolio Turnover 1% 1% 7%
Net assets, end of period (000 omitted) $103,443 $113,707 $97,765
- -------------------------------------------------------------------------------
+ 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 not have been
affected for the six month period ended June 30, 1999.
2 For the six months ended June 30, 1999 (unaudited).
3 For the period from the start of business, May 2, 1997 to December 31, 1997.
++ For the six months ended June 30, 1999, the operating expenses of the fund
reflect an allocation of expenses to the investment adviser. Had such action
not been taken, the ratios would have been as follows:
1999(2)
Ratios (As of percentage of average daily net assets):
Expenses 0.60%+
Net Expenses 0.57%+
Net Investment Income 6.21%+
See notes to financial statements
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
- -------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited)
(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),
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
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported
amounts of revenue and expense during the reporting period. Actual results
could differ from those estimates.
<PAGE>
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.
I. Interim Financial Information - The interim financial statements relating
to June 30, 1999 and for the six month period then ended have not been
audited by independent certified public accountants, but in the opinion of
the Trust's management, reflect all adjustments, consisting only of
normally recurring adjustments, necessary for the fair presentation of the
financial statements.
(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 six months ended June 30, 1999, the effective
annual rate was 0.61% 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 preliminary reduction of its
investment adviser fee by $20,287 for the Junior Portfolio. Additionally,
$10,882 of expenses were allocated to the investment adviser on a preliminary
basis for the Current Income 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 six months
ended June 30, 1999, the effective annual rate was 0.14% for the Selected
Portfolio, 0.20% for the Junior Portfolio, 0.13% 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.
<PAGE>
Purchases and sales of investments, other than U.S. Government securities
and short-term obligations, for the six months ended June 30, 1999 were
as follows:
<TABLE>
<CAPTION>
Selected Junior International U.S. Government U.S. Current
Blue Chip Blue Chip Blue Chip Near Term Treasury Income
(Unaudited) Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
- ---------------------------------------------------------------------------------------------------------------------------------
Purchases -
<S> <C> <C> <C> <C> <C> <C>
Non-U.S. Gov't Obligations $ 49,911,494 $ 2,565,309 $ 66,199,130 $ -- $ -- $ --
============ ============ ============ ============ ============ ============
U.S. Gov't Obligations $ -- $ -- $ -- $ 9,409,755 $ 5,637,836 $ 10,050,330
============ ============ ============ ============ ============ ============
Sales -
Non-U.S. Gov't Obligations $ 134,687,360 $ 17,186,255 $ 120,075,091 $ -- $ -- $ --
============ ============ ============ ============ ============ ============
U.S. Gov't. Obligations $ -- $ -- $ -- $ 18,938,042 $ 15,070,942 $ 561,429
============ ============ ============ ============ ============ ============
</TABLE>
(4) FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES
The cost and unrealized appreciation (depreciation) of the investment
securities owned at June 30, 1999, 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
(Unaudited) Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Aggregate cost $103,145,048 $ 17,342,866 $133,399,728 $ 76,657,493 $ 51,177,651 $107,067,001
============ ============ ============ ============ ============ ============
Gross unrealized appreciation $ 40,239,001 $ 1,990,848 $ 26,292,550 $ 525,487 $ 1,301,340 $ 710,863
Gross unrealized depreciation (1,731,115) (1,435,736) (9,470,340) (687,344) (422,835) (2,343,053)
----------- ----------- ----------- ----------- ----------- -----------
Net unrealized
appreciation (depreciation) $ 38,507,886 $ 555,112 $ 16,822,210 $ (161,857) $ 878,505 $ (1,632,190)
============ ============ ============ ============ ============ ============
- ---------------------------------------------------------------------------------------------------------------------------------
</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 June 30, 1999, the International Portfolio had the following forward
foreign currency exchange contracts open:
<TABLE>
<CAPTION>
SALES
Settlement Contracts to Deliver In Exchange for Contracts Net Unrealized
Date Currency (in Local Currency) (U.S. Dollars) at Value Appreciation (Depreciation)
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
7/01/99 Great Britain Pound 594,611 $ 943,648 $ 936,697 $ 6,951
7/02/99 Great Britain Pound 599,978 $ 953,365 $ 945,157 $ 8,208
------------- ------------- ------------
$ 1,897,013 $ 1,881,854 $ 15,159
============= ============= ===========
</TABLE>
At June 30, 1999, the International Portfolio had sufficient cash and/or
securities to cover any commitments under these contracts.
<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 portfolios 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 June 30, 1999.
<PAGE>
PORTFOLIOS OF INVESTMENTS
Wright Major Blue Chip Equities Fund (WMBC)
- -------------------------------------------------------------------------------
Portfolio of Investments - June 30, 1999 (Unaudited)
Shares Value
Equity Interests -- 97.7%
APPAREL -- 1.6%
VF Corp............................. 41,500 $ 1,774,125
-----------
AUTOMOTIVE -- 4.1%
Dana Corporation.................... 50,900 $ 2,344,581
Johnson Controls.................... 30,900 2,141,756
-----------
$ 4,486,337
-----------
BEVERAGES -- 2.3%
Pepsico............................. 64,700 $ 2,503,081
-----------
CHEMICALS -- 3.7%
DuPont (E.I.) de Nemours & Co....... 32,500 $ 2,220,156
PPG Industries...................... 28,800 1,701,000
Rohm & Haas Co...................... 4,056 173,901
-----------
$ 4,095,057
-----------
DIVERSIFIED -- 6.5%
General Electric Co................. 22,600 $ 2,553,800
Tyco International Ltd.............. 25,100 2,378,225
United Technologies................. 30,400 2,179,300
-----------
$ 7,111,325
-----------
DRUGS, COSMETICS & HEALTHCARE -- 5.4%
Johnson & Johnson................... 23,200 $ 2,273,600
Merck & Co., Inc.................... 30,300 2,242,200
Pfizer Inc.......................... 12,600 1,382,850
-----------
$ 5,898,650
-----------
ELECTRONICS -- 15.8%
Computer Associates Int'l. Inc...... 53,100 $ 2,920,500
EMC Corp./Mass*..................... 36,000 1,980,000
Gateway 2000........................ 28,400 1,675,600
Intel Corp.......................... 31,000 1,844,500
International Business Machines..... 21,400 2,765,950
Microsoft Corp...................... 13,500 1,217,531
Oracle Corp......................... 64,250 2,385,281
Sun Microsystems, Inc*.............. 36,800 2,534,600
-----------
$ 17,323,962
-----------
FINANCIAL -- 19.9%
American Express Co................. 15,000 $ 1,951,875
American International Group........ 14,925 1,747,158
BB&T Corporation.................... 61,600 2,259,950
Chase Manhattan Corp................ 27,500 2,382,188
Citigroup........................... 22,950 1,090,125
Fannie Mae.......................... 36,200 2,475,175
Jefferson-Pilot Corp................ 36,200 2,395,988
KeyCorp. (New)...................... 75,800 2,435,062
Mercantile Bancorporation........... 30,700 1,753,738
MBIA, Inc........................... 30,800 1,994,300
Southtrust Corp..................... 38,000 1,458,250
-----------
$ 21,943,809
-----------
MACHINERY & EQUIPMENT -- 4.0%
Ingersoll Rand Co................... 38,150 $ 2,465,444
Pitney-Bowes Inc.................... 29,900 1,921,075
-----------
$ 4,386,519
-----------
METAL PRODUCERS -- 1.5%
Alcoa Inc........................... 18,400 $ 1,138,500
Nucor Corp.......................... 10,600 502,838
-----------
$ 1,641,338
-----------
METAL PRODUCTS MANUFACTURERS -- 2.7%
Illinois Tool Works Inc............. 36,700 $ 3,009,400
-----------
OIL, GAS, COAL & RELATED SERVICES -- 7.4%
Chevron Corp........................ 23,900 $ 2,274,981
Exxon Corp.......................... 24,300 1,874,138
Halliburton Company................. 54,900 2,484,225
Mobil Corp.......................... 15,700 1,554,300
-----------
$ 8,187,644
-----------
PRINTING & PUBLISHING -- 2.3%
Gannett Co. Inc..................... 36,000 $ 2,569,500
-----------
<PAGE>
RECREATION -- 1.8%
Hasbro Inc.......................... 69,300 $ 1,936,079
-----------
RETAILERS -- 6.5%
Costco Companies Inc*............... 20,800 $ 1,665,300
Lowes Co's., Inc.................... 28,600 1,621,263
TJX Cos. Inc. (New)................. 60,700 2,022,069
Wal-Mart Stores..................... 37,600 1,814,200
-----------
$ 7,122,832
-----------
UTILITIES -- 8.2%
Alltel Corporation.................. 30,700 $ 2,195,050
Bellsouth Corporation............... 51,900 2,432,813
Duke Energy Corp.................... 35,000 1,903,125
SBC Communications, Inc............. 42,700 2,476,600
-----------
$ 9,007,588
-----------
MISCELLANEOUS -- 4.0%
Avery-Dennison Corp................. 36,000 $ 2,173,500
Electronic Data Systems Corp........ 39,600 2,239,875
-----------
$ 4,413,375
-----------
TOTAL EQUITY INTERESTS -- 97.7%
(identified cost, $86,347,751) $107,410,621
-----------
Reserve Funds -- 2.2%
Face Amount
American Express Corp., 5.501%, 07/01/99
(at amortized cost).............$2,440,000 $ 2,440,000
-----------
TOTAL INVESTMENTS -- 99.9%
(identified cost, $88,787,751) $109,850,621
OTHER ASSETS,
LESS LIABILITIES -- 0.1% 68,211
-----------
NET ASSETS -- 100% $109,918,832
============
* Non-income-producing security.
See notes to financial statements
<PAGE>
Wright Total Return Bond Fund (WTRB)
- -------------------------------------------------------------------------------
Portfolio of Investments - June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
Face Coupon Maturity Market Current Yield To
Amount Description Rate Date Price Value Yield(1) Maturity
- ---------------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS
FINANCIAL
<S> <C> <C> <C> <C> <C> <C> <C>
$ 1,100,000 Ameritech Cap 6.150% 1/15/08 $ 96.197 $ 1,058,167 6.39% 6.64%
2,000,000 Associates Corp. 6.450% 10/15/01 100.477 2,009,540 6.42% 6.21%
1,000,000 First Data Corp. 5.800% 12/15/08 91.726 917,260 6.32% 6.83%
3,200,000 Ford Motor Co. 6.500% 8/01/18 91.048 2,913,536 7.14% 7.33%
1,240,000 Ford Motor Credit 5.800% 1/12/09 91.390 1,133,236 6.35% 7.03%
2,825,000 General Elec. Cap. Corp. 6.500% 11/01/06 99.803 2,819,435 6.51% 6.70%
2,000,000 GMAC 6.375% 10/15/04 97.898 1,957,960 6.51% 6.91%
1,455,000 IBM Credit Corp. 5.375% 2/01/09 90.993 1,323,948 5.91% 6.61%
1,000,000 IBM Corp. 5.625% 4/12/04 96.100 961,000 5.85% 6.28%
2,675,000 IBM Credit Corp. 6.200% 8/28/00 100.486 2,688,001 6.17% 5.53%
1,000,000 J.P. Morgan 6.875% 1/15/07 100.032 1,000,320 6.87% 7.02%
INDUSTRIALS
$ 1,795,000 Hasbro Inc. 5.600% 11/01/05 $ 93.190 $ 1,672,761 6.01% 6.84%
3,200,000 Kimberly Clark Corp. 6.250% 7/15/18 92.334 2,954,685 6.77% 6.95%
1,280,000 Kimberly Clark Corp. 6.375% 1/01/28 90.244 1,155,123 7.06% 6.88%
2,400,000 McDonald's Corp. 6.500% 8/01/07 98.990 2,375,760 6.57% 6.50%
3,500,000 Warner-Lambert Co. 5.750% 1/15/03 98.241 3,438,435 5.85% 6.30%
UTILITIES
$ 3,140,000 AT&T Corp. 6.500% 3/15/29 $ 90.244 $ 2,833,662 7.20% 7.29%
1,000,000 Duke Energy Corp. 6.000% 12/01/28 84.514 845,140 7.10% 7.29%
1,680,000 Lucent Tech. 5.500% 11/15/08 92.091 1,547,129 5.97% 6.63%
1,100,000 Lucent Technologies Inc. 6.450% 3/15/29 90.461 995,071 7.13% 7.09%
1,500,000 New York Telecom. 6.000% 4/15/08 94.962 1,424,430 6.32% 6.78%
2,000,000 SBC Communications Inc. 6.625% 11/01/09 98.449 1,968,980 6.73% 6.78%
955,000 Tennessee Valley Authority 6.000% 3/15/13 94.562 903,067 6.35% 6.61%
----------
Total Corporate Bonds (identified cost, $43,132,058) - 39.3% $ 40,896,646
GOVERNMENT INTERESTS
U.S. GOVERNMENT AGENCIES
$ 1,280,000 Federal Home Loan Mortgage 5.800% 9/02/08 $ 95.281 $ 1,219,597 6.09% 6.42%
1,250,000 Federal Home Loan Mortgage 5.540% 10/27/08 92.203 1,152,538 6.01% 6.82%
1,500,000 Federal Home Loan Mortgage 5.125% 2/26/02 98.437 1,476,555 5.21% 5.92%
615,000 Federal Home Loan Mortgage 5.750% 4/15/08 95.266 585,886 6.04% 6.40%
500,000 Federal Home Loan Mortgage 6.125% 4/15/08 95.910 479,550 6.39% 7.00%
1,000,000 Federal Home Loan Mortgage 4.750% 12/14/01 97.516 975,160 4.87% 6.12%
1,000,000 Federal National Mtg. Assn. 6.170% 1/15/08 95.984 959,840 6.43% 6.66%
1,000,000 Federal National Mtg. Assn. 6.000% 5/15/08 96.984 969,840 6.19% 6.40%
1,500,000 Federal National Mtg. Assn. 6.560% 11/26/07 98.109 1,471,635 6.69% 6.76%
1,315,000 Federal National Mtg. Assn. 5.750% 2/15/08 95.609 1,257,258 6.01% 6.37%
2,000,000 Federal National Mtg. Assn. 6.400% 11/9/04 99.094 1,981,880 6.46% 6.37%
1,000,000 Federal National Mtg. Assn. 5.750% 6/15/05 97.562 975,620 5.89% 6.11%
600,000 Federal National Mtg. Assn. 6.250% 5/15/29 95.016 570,096 6.58% 6.65%
<PAGE>
U.S. Government Agencies - cont.
$ 1,250,000 Federal National Mtg. Assn. 5.625% 3/15/01 $ 99.828 $ 1,247,850 5.63% 5.72%
1,400,000 Federal National Mtg. Assn. 4.750% 11/14/03 94.750 1,326,500 5.01% 6.26%
440,000 Federal National Mtg. Assn. 5.740% 1/21/09 93.281 410,436 6.15% 6.96%
1,925,000 Federal National Mtg. Assn. 5.350% 10/27/03 96.359 1,854,911 5.55% 6.38%
497,357 GNMA Pool # 488924 6.500% 11/15/28 96.156 478,239 6.76% N/C
1,029,906 GNMA Pool # 422506 6.500% 3/15/26 96.406 992,892 6.74% N/C
540,877 GNMA Pool # 436214 6.500% 2/15/13 99.000 535,469 6.57% N/C
1,436,167 GNMA Pool # 460726 6.500% 12/15/27 96.156 1,380,962 6.76% N/C
939,034 GNMA Pool # 478072 6.500% 5/15/28 96.156 902,938 6.76% N/C
906,327 GNMA Pool # 427199 7.000% 12/15/27 98.656 894,146 7.10% N/C
3,388,411 GNMA Pool # 374892 7.000% 2/15/24 98.969 3,353,477 7.07% N/C
690,010 GNMA Pool # 002671 6.000% 11/20/28 93.094 642,359 6.45% N/C
644,645 GNMA Pool # 376400 6.500% 2/15/24 96.718 623,489 6.72% N/C
1,116,351 GNMA Pool # 379982 7.000% 2/15/24 98.969 1,104,842 7.07% N/C
480,878 GNMA Pool # 442996 6.000% 6/15/13 96.906 466,000 6.19% N/C
1,692,447 GNMA Pool # 458672 6.500% 1/15/28 96.156 1,627,390 6.76% N/C
958,719 GNMA Pool # 463839 6.000% 5/15/13 96.906 929,056 6.19% N/C
U.S. TREASURIES
$ 1,000,000 U.S. Treasury Bond 5.500% 8/15/28 $ 91.562 $ 915,620 6.01% 6.13%
500,000 U.S. Treasury Bond 6.250% 8/15/23 100.469 502,345 6.22% 6.21%
1,750,000 U.S. Treasury Bond 8.250% 5/15/05 102.078 1,786,365 8.08% 7.83%
2,900,000 U.S. Treasury Bond 6.000% 2/15/26 97.578 2,829,762 6.15% 6.19%
7,625,000 U.S. Treasury Bond 7.250% 5/15/16 109.984 8,386,280 6.59% 6.29%
1,400,000 U.S. Treasury Note 5.875% 11/15/99 100.297 1,404,158 5.86% 5.09%
300,000 U.S. Treasury Note 5.250% 5/31/01 99.531 298,593 5.27% 5.53%
2,500,000 U.S. Treasury Note 5.375% 1/31/00 100.187 2,504,675 5.36% 5.04%
1,900,000 U.S. Treasury Note 5.875% 6/30/00 100.547 1,910,393 5.84% 5.26%
2,500,000 U.S. Treasury Note 5.750% 10/31/00 100.437 2,510,925 5.84% 5.37%
3,000,000 U.S. Treasury Note 7.750% 2/15/01 103.484 3,104,520 7.49% 5.45%
1,700,000 U.S. Treasury Note 7.500% 2/15/05 107.656 1,830,152 6.97% 5.93%
1,050,000 U.S. Treasury Note 6.500% 8/15/05 103.078 1,082,319 6.31% 5.94%
----------
Total Government Interests (identified cost, $62,276,088) -59.5% $61,912,518
-----------
Total Investments (identified cost, $105,408,146) - 98.8% $102,809,164
Other Assets, Less Liabilities - 1.2% 1,310,735
----------
Net Assets -- 100.0% $104,119,899
============
Average Maturity - 9.5 Years
</TABLE>
See notes to financial statements
<PAGE>
Selected Blue Chip Equities Portfolio (SBCP)
- -------------------------------------------------------------------------------
Portfolio of Investments - June 30, 1999 (Unaudited)
Shares Value
Equity Interests -- 99.2%
APPAREL -- 1.9%
Liz Claiborne....................... 20,700 $ 1,084,050
VF Corp............................. 38,220 1,633,905
-----------
$ 2,717,955
-----------
AUTOMOTIVE -- 5.0%
Dana Corp........................... 71,800 $ 3,307,287
Johnson Controls.................... 52,200 3,618,113
-----------
$ 6,925,400
-----------
CHEMICALS -- 2.3%
Cooper Tire & Rubber Co............. 63,000 $ 1,488,375
PPG Industries Inc.................. 20,000 1,181,250
Rohm & Haas Co...................... 12,870 551,801
-----------
$ 3,221,426
-----------
CONSTRUCTION -- 2.4%
Jacobs Engineering Group*........... 44,500 $ 1,691,000
Southdown, Inc...................... 26,800 1,721,900
-----------
$ 3,412,900
-----------
DIVERSIFIED -- 6.0%
Carlisle Corp....................... 122,950 $ 3,865,241
Lancaster Colony Corp............... 131,300 4,529,850
-----------
$ 8,395,091
-----------
DRUGS, COSMETICS & HEALTHCARE -- 7.6%
Bard (C.R.)......................... 51,600 $ 2,467,125
Biogen, Inc......................... 51,200 3,292,800
Johnson & Johnson................... 27,600 2,704,800
Watson Pharmaceuticals.............. 63,000 2,208,938
-----------
$ 10,673,663
-----------
ELECTRONICS -- 12.2%
Adobe Systems Inc................... 59,200 $ 4,863,653
American Power Conversion........... 32,800 660,100
Dallas Semiconductor Corp........... 81,200 4,100,600
Gateway 2000 Inc.................... 27,200 1,604,800
Keane Inc........................... 30,000 678,750
Linear Technology................... 10,000 672,500
Solectron Corp...................... 13,600 906,950
Sun Microsystems Inc*............... 39,000 2,686,125
Synopsys Inc........................ 16,000 883,000
-----------
$ 17,056,478
-----------
FINANCIAL -- 19.1%
AFLAC Corp.......................... 21,500 $ 1,029,310
AMBAC Inc........................... 67,700 3,867,363
BB&T Corporation.................... 61,840 2,268,755
Commerce Bancshares, Inc............ 66,091 2,660,163
Compass Bancshares.................. 82,775 2,255,619
Edwards (A.G.), Inc................. 106,930 3,448,493
Federal National Mort. Assoc........ 37,500 2,564,063
First Security CP................... 71,450 1,947,013
Marshall & Ilsley Corp.............. 8,900 572,938
MBIA Inc............................ 55,000 3,561,250
Southtrust Corporation.............. 67,150 2,576,881
-----------
$ 26,751,848
-----------
FOOD -- 5.1%
Hormel Foods Corp................... 99,700 $ 4,012,925
Universal Foods Corp................ 147,800 3,122,275
-----------
$ 7,135,200
-----------
MACHINERY & EQUIPMENT -- 1.7%
Ingersoll Rand Co................... 38,200 $ 2,468,675
-----------
METAL PRODUCERS -- 0.6%
Carpenter Technology................ 29,800 $ 851,163
-----------
METAL PRODUCTS MANUFACTURERS -- 2.6%
Trinity Industries.................. 108,400 $ 3,631,400
-----------
OIL, GAS & COAL -- 3.0%
Halliburton Company................. 46,800 $ 2,117,700
Nabors Inds., Inc................... 85,900 2,099,181
-----------
$ 4,216,881
-----------
<PAGE>
RECREATION -- 4.3%
Brinker International Inc.*......... 145,000 $ 3,942,187
Brunswick Corp...................... 47,300 1,318,488
Harley-Davidson..................... 14,300 777,563
-----------
$ 6,038,238
-----------
RETAILERS -- 5.8%
Best Buy Company Inc................ 16,900 $ 1,140,750
Claire's Stores Inc................. 55,000 1,409,374
Office Depot........................ 43,000 948,688
Ross Stores Inc..................... 74,800 3,768,050
TJX Cos. Inc. (New)................. 24,100 802,831
-----------
$ 8,069,693
-----------
TRANSPORTATION -- 2.5%
Comair Holdings, Inc................ 84,375 $ 1,756,054
U.S. Freightways Corp............... 36,300 1,681,144
-----------
$ 3,437,198
-----------
UTILITIES - 8.0%
Aliant Comm Inc..................... 55,700 $ 2,572,644
Duke Energy Corp.................... 26,930 1,464,319
NiSource Inc........................ 66,900 1,726,856
SBC Communications Inc.............. 30,800 1,786,400
TECO Energy, Inc.................... 165,600 3,767,400
-----------
$ 11,317,619
-----------
MISCELLANEOUS -- 9.1%
Avery-Dennison Corp................. 40,000 $ 2,415,000
Cintas Corp......................... 10,900 732,343
Ethan Allen Interiors............... 109,050 4,116,638
HON Industries Inc.................. 90,000 2,626,875
Leggett & Platt Inc................. 100,000 2,781,250
-----------
$ 12,672,106
-----------
TOTAL EQUITY INTERESTS - 99.2%
(identified cost, $100,485,048) $138,992,934
-----------
Reserve Funds -- 1.9%
Face Amount
American Express Corp., 5.50%, 7/01/99
(at amortized cost).............$2,660,000 $ 2,660,000
-----------
TOTAL INVESTMENTS -- 101.1%
(identified cost, $103,145,048) $141,652,934
OTHER ASSETS,
LESS LIABILITIES -- (1.1%) (1,572,046)
-----------
NET ASSETS -- 100% $140,080,888
============
* Non-income-producing security.
See notes to financial statements
<PAGE>
Junior Blue Chip Equities Portfolio (JBCP)
- -------------------------------------------------------------------------------
Portfolio of Investments - June 30, 1999 (Unaudited)
Shares Value
Equity Interests -- 99.3%
APPAREL -- 2.2%
Quiksilver, Inc*.................... 15,100 $ 393,544
-----------
AUTOMOTIVE -- 6.9%
Simpson Industries.................. 58,900 $ 603,725
Thor Industries, Inc................ 22,400 635,600
-----------
$ 1,239,325
-----------
CHEMICALS -- 3.4%
AMCOL Int'l. Corp................... 42,700 $ 613,813
-----------
CONSTRUCTION -- 7.5%
Patrick Industries.................. 45,500 710,938
Universal Forest Pr................. 29,900 642,850
-----------
$ 1,353,788
-----------
DRUGS, COSMETICS & HEALTHCARE -- 7.3%
Arrow International Inc............. 12,000 $ 310,500
Empi, Inc*.......................... 27,900 680,063
Respironics, Inc*................... 21,400 323,675
-----------
$ 1,314,238
-----------
ELECTRONICS -- 8.7%
Fair Issac & Co. Inc................ 16,900 $ 592,556
Harman International Inds........... 10,000 440,000
Technitrol, Inc..................... 16,800 541,800
-----------
$ 1,574,356
-----------
FINANCIAL -- 8.7%
Centura Banks Inc................... 9,800 $ 552,475
One Valley Bancorp.................. 11,200 420,000
Raymond James Financial Corp........ 24,600 588,863
-----------
$ 1,561,338
-----------
MACHINERY & EQUIPMENT -- 6.7%
CLARCOR Inc......................... 34,100 $ 654,294
JLG Industries Inc.................. 27,000 550,125
-----------
$ 1,204,419
-----------
METAL PRODUCERS -- 3.6%
Imco Recycling Inc.................. 38,200 $ 654,175
-----------
METAL PRODUCTS MANUFACTURERS -- 3.2%
Regal Beloit Corp................... 24,200 $ 571,725
-----------
PRINTING & PUBLISHING -- 3.1%
Standard Register................... 18,300 $ 562,725
-----------
RECREATION -- 9.5%
Buffetts Inc.*...................... 59,700 $ 686,550
Ryan's Family Steak Houses.......... 30,000 348,750
Sonic Corp.*........................ 20,950 683,494
-----------
$ 1,718,794
-----------
RETAILERS -- 3.1%
The Buckle Inc...................... 19,700 $ 566,375
-----------
MISCELLANEOUS -- 25.4%
Action Perfomance Cos. Inc.......... 5,600 $ 184,800
Caci International, Inc............. 32,800 738,000
Gallagher (Arthur J.)............... 13,600 673,200
Lawson Prods. Inc................... 22,300 561,681
Myers Industries.................... 27,950 559,000
TBC Corp.*.......................... 82,000 579,125
Tetra Tech Inc.*.................... 30,343 500,660
World Fuel Services Corp............ 52,400 772,897
-----------
$ 4,569,363
-----------
TOTAL INVESTMENTS -- 99.3%
(identified cost, $17,342,866) $ 17,897,978
OTHER ASSETS,
LESS LIABILITIES -- 0.7% 121,179
-----------
NET ASSETS -- 100.0% $ 18,019,157
============
* Non-income-producing security.
See notes to financial statements
<PAGE>
International Blue Chip Equities Portfolio (IBCP)
- ------------------------------------------------------------------------------
Portfolio of Investments - June 30, 1999 (Unaudited)
Shares Value
Equity Interests -- 97.6%
AUSTRALIA -- 1.9%
Lend Lease Corp. Ltd................ 117,748 $ 1,615,923
National Australia Bank Ltd......... 79,000 1,306,660
-----------
$ 2,922,583
-----------
AUSTRIA -- 1.8%
Bank Austria AG..................... 16,200 $ 852,225
VA Technologie AG................... 11,500 1,042,099
Wienerberger Baustoff Ind........... 30,900 800,340
-----------
$ 2,694,664
-----------
BELGIUM -- 0.6%
Delhaize LE PS...................... 10,700 $ 911,108
-----------
BRAZIL -- 1.2%
Embratel Partipacoes................ 21,400 $ 296,925
Telecelular Sul Particip............ 2,140 46,411
Telecentro Sul Participa............ 4,280 237,540
Telenorte Leste Participa........... 21,400 397,238
Telesp Celular Participa............ 8,560 228,980
Telesp Participacoes SA ADR......... 21,400 489,525
Telesudeste Celular Part............ 4,280 124,120
-----------
$ 1,820,739
-----------
CANADA -- 5.7%
ATI Technologies.................... 111,200 $ 1,791,910
Bombardier Inc. Class B............. 89,400 1,359,076
Fairfax Financial Hlds.............. 4,900 1,307,728
Magna Int'l. Inc. Cl. A............. 16,615 935,685
Newbridge Network Corp.............. 32,600 937,250
Power Financial Corp................ 66,600 1,259,959
Teleglobe Inc....................... 38,200 1,124,024
-----------
$ 8,715,632
-----------
DENMARK -- 0.6%
Tele Danmark........................ 20,000 $ 981,493
-----------
FINLAND -- 1.9%
Metsa Serla B Shares................ 140,200 $ 1,191,638
Nokia Oy B Shares................... 19,700 1,727,247
-----------
$ 2,918,885
-----------
FRANCE -- 14.5%
Alcatel............................. 13,500 $ 1,900,797
Altran Technologies SA.............. 5,000 1,320,320
Axa Company FRF60................... 14,900 1,818,194
Essilor International............... 5,700 1,782,092
L'Air Liquide SA.................... 6,778 1,066,205
Michelin B. French Reg. Shares...... 43,700 1,788,187
Pinault-Printemps Redoute SA........ 6,300 1,081,342
Promodes............................ 2,700 1,772,684
Sagem SA............................ 2,570 1,717,819
Stmicroelectronics NV............... 25,000 1,665,872
Technip............................. 11,130 1,249,089
TV Francaise........................ 7,500 1,748,392
Valeo............................... 21,800 1,798,936
Vivendi............................. 18,000 1,458,438
-----------
$ 22,168,367
-----------
GERMANY -- 8.7%
Allianz AG Holding Ger Reg.......... 3,600 $ 1,003,546
BASF AG............................. 34,400 1,520,472
Bayer AG............................ 23,600 983,473
Bayerische Motoren Werke AG......... 2,239 1,540,456
DaimlerChrysler..................... 18,000 1,599,750
Heidelberger Zement AG.............. 20,600 1,699,912
Linde AG German Ord................. 2,000 1,198,603
Mannesmann AG....................... 5,300 796,535
SAP AG Vorzug....................... 2,400 970,683
Veba AG............................. 33,700 1,981,408
-----------
$ 13,294,838
-----------
GREECE -- 1.5%
Heracles General Cement Co.......... 14,500 $ 388,389
Intracom SA......................... 15,700 1,012,067
National Bank of Greece............. 14,000 915,817
-----------
$ 2,316,273
-----------
HONG KONG -- 1.9%
HSBC Holdings PLC................... 26,467 $ 965,339
Henderson Land Development.......... 133,000 764,496
Johnson Electric Holdings Ltd....... 269,000 1,109,407
-----------
$ 2,839,242
-----------
IRELAND -- 1.1%
CRH PLC............................. 43,781 $ 774,513
Greencore PLC....................... 55,000 177,615
Waterford Wedgewood - Uni........... 780,000 798,677
-----------
$ 1,750,805
-----------
<PAGE>
ITALY -- 3.5%
Alleanza Assicurazioni SPA.......... 178,000 $ 2,047,218
Assicurazione Generali Itl.......... 18,500 641,180
Benetton Group...................... 585,000 1,152,547
Telecom Italia Mobile............... 243,000 1,451,290
-----------
$ 5,292,235
-----------
JAPAN -- 12.1%
Autobacs Seven...................... 26,000 $ 1,262,636
Bellsystem24 Inc.................... 5,000 2,042,038
Bridgestone Corporation............. 39,000 1,178,890
Canon Inc........................... 79,000 2,270,565
Honda Motor Co., Ltd................ 45,000 1,906,591
Hoya Corp........................... 24,000 1,353,816
Matsushita Communication Ind........ 15,000 1,071,606
Murata Mfg. Co. Ltd................. 13,000 841,758
Ono Pharmaceutical.................. 20,000 682,194
Takeda Chem Industries Ltd.......... 22,000 1,019,326
Takefuji Corp....................... 17,000 1,756,442
Toyota Motor Co..................... 34,000 1,075,486
York-Benimaru Co. Ltd............... 54,000 2,038,156
-----------
$ 18,499,504
-----------
MEXICO -- 2.9%
Cemex S.A........................... 133,911 $ 660,135
Cifra S.A........................... 334,740 648,729
Grupo Carso S.A. de C.V............. 141,000 651,825
Grupo Industrial Saltillo A......... 150,000 528,404
Grupo Industrial Maseca-B........... 907,000 537,311
Organizacion Soriana SA-B........... 162,000 759,188
Telefonos de Mexico................. 8,100 654,580
-----------
$ 4,440,172
-----------
NETHERLANDS -- 9.5%
Abn Amro Holdings................... 90,315 $ 1,956,358
Aegon NV............................ 16,763 1,216,424
Cap Gemini.......................... 31,100 2,123,673
CSM N.V. Cert....................... 28,472 1,422,922
Fortis Amev NV...................... 43,843 1,354,460
Getronics N.V....................... 32,132 1,236,277
Hunter Douglas NV................... 1,000 34,349
ING Groep N.V....................... 35,195 1,905,941
Internatio-Muller NV................ 37,916 835,006
Koninklijke Philips Electronics..... 8,000 789,304
TNT Post Group*..................... 346 8,262
Verenigde Nederlandse............... 13,000 519,618
Volker Wessels Stevin............... 55,548 1,065,738
-----------
$ 14,468,333
-----------
PORTUGAL-- 0.5%
Portugal Telecom S.A. ADR........... 17,000 $ 700,188
-----------
SINGAPORE -- 1.9%
City Developments................... 150,000 $ 960,353
Overseas Chinese Bkng Corp.......... 128,000 1,067,606
United Overseas Bank-Foreign........ 128,000 894,684
-----------
$ 2,922,643
-----------
SOUTH AFRICA -- 2.0%
Sasol Beperk Limited................ 225,000 $ 1,604,482
Tiger Oats Limited.................. 82,350 750,248
Wooltru............................. 388,000 661,984
-----------
$ 3,016,714
-----------
SPAIN -- 5.9%
Banco Bilbao Vizcaya SA............. 73,950 $ 1,068,675
Banco Santander Central Hisp........ 110,000 1,145,997
Bankinter - Banco Interc Esp........ 23,800 969,713
Endesa S.A.......................... 82,400 1,757,709
Gas Natural SDG S.A................. 7,100 516,317
Repsol S.A.......................... 110,220 2,251,100
Telefonica.......................... 28,611 1,378,517
-----------
$ 9,088,028
-----------
SWEDEN -- 2.9%
Ericsson AB B Free.................. 71,800 $ 2,303,992
Hoganas AB-B........................ 57,100 1,159,886
Svedala Industri AB-Free............ 53,700 967,510
-----------
$ 4,431,388
-----------
SWITZERLAND -- 1.7%
Alusuisse-Lonza Group Ltd........... 1,550 $ 1,807,801
Sch. Rueckversicherungs-Ges......... 430 819,259
-----------
$ 2,627,060
-----------
UNITED KINGDOM -- 13.3%
Airtours............................ 222,100 $ 1,763,366
Astrazeneca PLC..................... 20,600 796,027
Bodycote International PLC.......... 181,750 1,122,338
Bowthorpe Holdings PLC.............. 118,900 1,043,279
<PAGE>
British Petroleum Co. PLC........... 42,500 $ 760,555
British Telecommunications PLC...... 90,000 1,505,672
Cable & Wireless PLC ADR........... 39,100 1,549,338
Cobham.............................. 122,000 1,941,085
Computer Management Group........... 50,800 1,338,021
Invensys PLC........................ 361,714 1,709,424
Johnson Matthey Public Ltd.......... 104,400 1,019,660
Kingfisher PLC...................... 66,000 769,699
Wm. Morrison Supermarkets PLC....... 364,200 826,162
Smithkline Beecham PLC.............. 50,841 660,740
Tesco PLC........................... 254,000 658,208
Vodafone Airtouch PLC............... 88,187 1,733,734
Wolseley PLC........................ 156,540 1,178,736
-----------
$ 20,376,044
-----------
TOTAL EQUITY INTERESTS - 97.6%
(identified cost, $132,374,728) $149,196,938
-----------
Reserve Funds -- 0.7%
Face Amount
American Express Corp., 5.501%, 7/01/99
(at amortized cost).............$1,025,000 $ 1,025,000
-----------
TOTAL INVESTMENTS -- 98.3%
(identified cost, $133,399,728) $150,221,938
OTHER ASSETS,
LESS LIABILITIES -- 1.7% 2,572,702
-----------
NET ASSETS -- 100% $152,794,640
============
* Non-income-producing security.
ADR: American Depository Receipts
See notes to financial statements
<PAGE>
Wright U.S. Treasury Money Market Fund (WTMM)
- -------------------------------------------------------------------------------
Portfolio of Investments - June 30, 1999 (Unaudited)
Face Interest Maturity
Amount Issuer Rate Date Value
- -------------------------------------------------------------------------------
$2,000,000 U.S. Treasury Bills 4.275% 07/01/99 $ 2,000,000
2,050,000 U.S. Treasury Bills 4.240% 07/22/99 2,044,929
2,000,000 U.S. Treasury Bills 4.400% 07/22/99 1,994,867
300,000 U.S. Treasury Bills 4.180% 07/22/99 299,268
2,500,000 U.S. Treasury Bills 4.310% 08/19/99 2,485,334
200,000 U.S. Treasury Bills 4.370% 08/19/99 198,811
900,000 U.S. Treasury Bills 4.430% 08/19/99 894,573
700,000 U.S. Treasury Bills 4.350% 08/19/99 695,855
2,600,000 U.S. Treasury Bills 4.330% 09/16/99 2,575,920
350,000 U.S. Treasury Bills 4.470% 09/16/99 346,654
1,300,000 U.S. Treasury Bills 4.460% 09/16/99 1,287,599
500,000 U.S. Treasury Bills 4.500% 09/16/99 495,188
2,000,000 U.S. Treasury Bills 4.590% 10/14/99 1,973,225
2,500,000 U.S. Treasury Bills 4.420% 10/14/99 2,467,770
4,100,000 U.S. Treasury Bills 4.615% 11/12/99 4,029,570
1,300,000 U.S. Treasury Bills 4.200% 07/08/99 1,298,938
3,000,000 U.S. Treasury Bills 4.300% 07/08/99 2,997,492
4,200,000 U.S. Treasury Bills 4.345% 07/15/99 4,192,902
200,000 U.S. Treasury Bills 4.420% 07/15/99 199,656
2,000,000 U.S. Treasury Bills 4.460% 08/05/99 1,991,328
4,000,000 U.S. Treasury Bills 4.380% 08/05/99 3,982,967
150,000 U.S. Treasury Bills 4.360% 08/12/99 149,237
600,000 U.S. Treasury Bills 4.485% 08/12/99 596,861
3,300,000 U.S. Treasury Bills 4.470% 08/12/99 3,282,791
700,000 U.S. Treasury Bills 4.370% 09/02/99 694,647
600,000 U.S. Treasury Bills 4.400% 09/23/99 593,840
250,000 U.S. Treasury Bills 4.450% 09/23/99 247,404
1,200,000 U.S. Treasury Bills 4.520% 09/23/99 1,187,344
1,000,000 U.S. Treasury Bills 4.590% 09/23/99 989,290
2,300,000 U.S. Treasury Bills 4.500% 09/23/99 2,275,850
5,400,000 U.S. Treasury Bills 4.575% 09/30/99 5,337,551
200,000 U.S. Treasury Bills 4.330% 10/07/99 197,643
3,000,000 U.S. Treasury Bills 4.480% 10/21/99 2,958,186
400,000 U.S. Treasury Bills 4.490% 10/21/99 394,413
1,000,000 U.S. Treasury Bills 4.570% 10/21/99 985,782
1,300,000 U.S. Treasury Bills 4.715% 11/26/99 1,274,801
5,000,000 U.S. Treasury Bills 4.715% 11/26/99 4,903,081
800,000 U.S. Treasury Bills 4.800% 12/02/99 783,573
3700,000 U.S. Treasury Bills 4.790% 12/02/99 3,624,185
2,100,000 U.S. Treasury Bills 4.730% 12/16/99 2,053,646
250,000 U.S. Treasury Bills 4.850% 12/16/99 244,342
1,100,000 U.S. Treasury Bills 4.830% 12/16/99 1,075,206
$1,400,000 U.S. Treasury Notes 5.875% 11/15/99 $ 1,410,974
2,000,000 U.S. Treasury Notes 5.875% 11/15/99 2,021,606
3,000,000 U.S. Treasury Notes 7.500% 10/31/99 3,062,223
4,500,000 U.S. Treasury Notes 5.875% 08/31/99 4,597,252
----------
Total Investments
At Amortized Cost -- 103.9% $ 83,394,574
Other Assets, less Liabilities -- (3.9%) (3,128,917)
----------
Net Assets -- 100.0% $ 80,265,657
===========
See notes to financial statements
<PAGE>
U.S. Government Near Term Portfolio (NTBP)
- -------------------------------------------------------------------------------
Portfolio of Investments - June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
Face Coupon Maturity Market Current Yield To
Amount Description Rate Date Price Value Yield(1) Maturity
- ---------------------------------------------------------------------------------------------------------------------------------
GOVERNMENT INTERESTS
<S> <C> <C> <C> <C> <C> <C> <C>
$ 1,950,000 Federal Home Loan Bank 4.860% 10/05/01 $ 98.062 $ 1,912,209 4.96% 5.89%
1,700,000 Federal Home Loan Bank 5.125% 2/26/02 98.437 1,673,429 5.21% 5.92%
2,000,000 Federal Home Loan Bank 5.675% 8/18/03 98.187 1,963,740 5.78% 6.11%
650,000 Federal Home Loan Bank 5.125% 9/15/03 96.312 626,028 5.32% 6.10%
1,000,000 Federal Home Loan Bank 5.535% 11/10/03 97.000 970,000 5.71% 6.25%
500,000 Federal Home Loan Bank 5.375% 12/08/03 96.719 483,595 5.56% 6.70%
500,000 Federal Home Loan Bank 5.400% 3/01/04 96.656 483,280 5.59% 6.14%
1,500,000 FHLMC 6.000% 1/12/04 98.109 1,471,635 6.12% 6.36%
1,500,000 FNLB 5.430% 6/08/01 99.266 1,488,990 5.47% 5.44%
1,000,000 FNMA 4.750% 11/14/03 94.750 947,500 5.01% 6.26%
1,000,000 FNMA 5.310% 9/15/00 99.531 995,310 5.34% 5.70%
1,500,000 FNMA 5.250% 11/19/01 98.641 1,479,615 5.32% 6.04%
1,925,000 FNMA 5.900% 7/09/03 97.937 1,885,287 6.02% 6.16%
1,300,000 FNMA 6.170% 8/05/03 98.312 1,278,056 6.28% 6.50%
1,500,000 FNMA 5.940% 8/18/03 97.891 1,468,365 6.07% 6.28%
1,500,000 FNMA 5.860% 8/20/03 97.844 1,467,660 5.99% 6.14%
1,500,000 FNMA 5.910% 8/25/03 98.281 1,474,215 6.01% 6.25%
1,500,000 FNMA 5.350% 10/27/03 96.359 1,445,385 5.55% 6.38%
1,475,000 FNMA 5.860% 1/20/04 97.750 1,441,813 5.99% 6.62%
1,770,000 FNMA 5.875% 4/23/04 97.516 1,726,033 6.02% 6.30%
1,300,000 U.S. Treasury Note 8.000% 8/15/99 100.391 1,305,083 7.97% 4.69%
2,000,000 U.S. Treasury Note 7.875% 11/15/99 101.031 2,020,620 7.79% 5.04%
2,500,000 U.S. Treasury Note 5.375% 1/31/00 100.187 2,504,675 5.36% 5.04%
2,000,000 U.S. Treasury Note 5.875% 2/15/00 100.422 2,008,440 5.85% 5.14%
1,500,000 U.S. Treasury Note 8.500% 2/15/00 102.047 1,530,705 8.33% 5.10%
11,100,000 U.S. Treasury Note 7.125% 2/29/00 101.266 11,240,526 7.04% 5.08%
7,000,000 U.S. Treasury Note 6.250% 5/31/00 100.812 7,056,840 6.20% 5.29%
8,000,000 U.S. Treasury Note 6.000% 8/15/00 100.641 8,051,280 5.96% 5.39%
1,400,000 U.S. Treasury Note 5.625% 11/30/00 100.266 1,403,724 5.61% 5.41%
9,650,000 U.S. Treasury Note 7.500% 11/15/01 104.172 10,052,598 7.20% 5.66%
2,600,000 U.S. Treasury Note 6.250% 2/28/02 101.500 2,639,000 6.16% 5.69%
-----------
Total Investments (identified cost, $76,657,493) -- 98.1% $ 76,495,636
Other Assets, Less Liabilities -- 1.9% 1,478,441
-----------
Net Assets -- 100.0% $ 77,974,077
============
Average Maturity -- 1.7 Years
See notes to financial statements
</TABLE>
<PAGE>
U.S. Treasury Portfolio (USTBP)
- -------------------------------------------------------------------------------
Portfolio of Investments - June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
Face Coupon Maturity Market Current Yield To
Amount Description Rate Date Price Value Yield(1) Maturity
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 3,000,000 U. S. Treasury Notes 5.875% 11/15/99 $101.297 $ 3,008,910 5.86% 5.09%
2,700,000 U. S. Treasury Notes 5.375% 1/31/00 100.187 2,705,049 5.36% 5.04%
3,400,000 U. S. Treasury Notes 6.250% 5/31/00 100.812 3,427,608 6.20% 5.29%
4,450,000 U. S. Treasury Notes 5.250% 1/31/01 99.687 4,436,072 5.27% 5.43%
2,200,000 U. S. Treasury Notes 5.000% 2/28/01 99.218 2,182,796 5.04% 5.64%
6,000,000 U. S. Treasury Notes 6.500% 5/15/05 103.062 6,183,720 6.31% 5.92%
5,100,000 U. S. Treasury Notes 6.500% 8/15/05 103.078 5,256,978 6.31% 5.94%
2,500,000 U. S. Treasury Notes 6.500% 10/15/06 103.250 2,581,250 6.30% 5.95%
750,000 U. S. Treasury Notes 6.250% 2/15/07 101.891 764,183 6.13% 5.94%
1,500,000 U. S. Treasury Notes 6.625% 5/15/07 104.141 1,562,115 6.36% 5.96%
2,500,000 U. S. Treasury Notes 6.125% 8/15/07 101.078 2,526,950 6.06% 5.96%
600,000 U.S Treasury Bonds 11.625% 11/15/04 126.234 757,404 9.21% 5.94%
1,000,000 U.S Treasury Bonds 10.000% 5/15/10 119.125 1,191,250 8.39% 7.42%
1,300,000 U.S Treasury Bonds 14.000% 11/15/11 146.281 1,901,653 9.57% 8.06%
6,100,000 U.S Treasury Bonds 7.250% 5/15/16 109.984 6,709,024 6.59% 6.29%
1,700,000 U.S Treasury Bonds 6.250% 8/15/23 100.469 1,707,972 6.22% 6.21%
1,950,000 U.S Treasury Bonds 6.000% 2/15/26 97.578 1,902,771 6.15% 6.19%
3,550,000 U.S Treasury Bonds 5.500% 8/15/28 91.562 3,250,451 6.01% 6.13%
-----------
Total Investments (identified cost, $51,177,651) - 94.7% $52,056,156
Other Assets, less Liabilities - 5.3% 2,920,216
-----------
Net Assets - 100.0% $54,976,372
============
Average Maturity - 8.7 Years
See notes to financial statements
</TABLE>
<PAGE>
Current Income Portfolio (CIFP)
- -------------------------------------------------------------------------------
Portfolio of Investments - June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
Face Coupon Maturity Market Current
Amount Description Rate Date Price Value Yield
- ---------------------------------------------------------------------------------------------------------------------------------
GOVERNMENT INTERESTS - 95.3%
<S> <C> <C> <C> <C> <C> <C> <C>
$ 1,506 GNMA POOL # 000434 8.000% 4/15/01 $101.109 $ 1,524 7.91%
339 GNMA POOL # 000473 7.500% 4/15/01 100.771 342 7.44%
770,372 GNMA POOL # 000545 7.500% 12/20/22 100.718 775,904 7.45%
1,241,886 GNMA POOL # 000723 7.500% 1/20/23 100.718 1,250,803 7.45%
1,024,873 GNMA POOL # 001268 8.000% 7/20/23 102.641 1,051,940 7.79%
1,095 GNMA POOL # 001408 6.500% 3/15/02 99.296 1,088 6.55%
54,695 GNMA POOL # 001596 9.000% 4/20/21 106.124 58,045 8.48%
371,249 GNMA POOL # 001788 7.000% 7/20/24 98.438 365,450 7.11%
499,987 GNMA POOL # 002218 7.500% 5/20/26 100.562 502,798 7.46%
1,472,433 GNMA POOL # 002268 7.500% 8/20/26 100.562 1,480,709 7.46%
985,729 GNMA POOL # 002671 6.000% 11/20/28 93.094 917,655 6.45%
2,661,121 GNMA POOL # 002687 6.000% 12/20/28 93.094 2,477,345 6.45%
1,131 GNMA POOL # 003026 8.000% 1/15/04 102.264 1,157 7.82%
658 GNMA POOL # 003331 8.000% 1/15/04 102.264 674 7.82%
2,073 GNMA POOL # 004183 8.000% 7/15/04 102.264 2,120 7.82%
1,424 GNMA POOL # 004433 9.000% 11/15/04 104.403 1,488 8.62%
338,845 GNMA POOL # 004702 7.500% 2/15/26 100.937 342,020 7.43%
3,164 GNMA POOL # 005466 8.500% 3/15/05 103.702 3,282 8.20%
418 GNMA POOL # 005561 8.500% 4/15/05 103.258 432 8.23%
1,599,905 GNMA POOL # 005601 8.000% 11/15/26 102.843 1,645,391 7.78%
1,515 GNMA POOL # 005687 7.250% 2/15/05 100.698 1,526 7.20%
1,894 GNMA POOL # 005910 7.250% 2/15/05 100.899 1,911 7.19%
10,767 GNMA POOL # 007003 8.000% 7/15/05 102.555 11,042 7.80%
1,338 GNMA POOL # 007319 6.500% 10/15/04 98.823 1,323 6.58%
4,454 GNMA POOL # 009106 8.250% 5/15/06 103.523 4,611 7.97%
7,006 GNMA POOL # 009889 7.250% 2/15/06 100.865 7,067 7.19%
850 GNMA POOL # 011191 7.250% 4/15/06 100.865 858 7.19%
3,630 GNMA POOL # 012526 8.000% 11/15/06 103.176 3,745 7.75%
681,176 GNMA POOL # 044190 8.000% 12/15/26 102.843 700,542 7.78%
94,472 GNMA POOL # 151443 10.000% 3/15/16 106.519 100,631 9.39%
19,236 GNMA POOL # 153564 10.000% 4/15/16 106.433 20,474 9.40%
102,646 GNMA POOL # 172558 9.500% 8/15/16 107.405 110,247 8.85%
163,431 GNMA POOL # 176992 8.000% 11/15/16 103.656 169,407 7.72%
27,714 GNMA POOL # 177784 8.000% 10/15/16 103.656 28,728 7.72%
35,040 GNMA POOL # 180033 9.500% 9/15/16 107.405 37,635 8.85%
4,848 GNMA POOL # 188060 9.500% 10/15/16 107.405 5,208 8.85%
2,454 GNMA POOL # 190959 8.500% 2/15/17 105.262 2,584 8.08%
77,337 GNMA POOL # 192357 8.000% 4/15/17 103.593 80,116 7.72%
237,042 GNMA POOL # 194057 8.500% 4/15/17 105.262 249,516 8.08%
60,454 GNMA POOL # 194287 9.500% 3/15/17 107.393 64,924 8.85%
392,514 GNMA POOL # 194926 8.500% 2/15/17 105.262 413,169 8.08%
10,146 GNMA POOL # 196063 8.500% 3/15/17 105.262 10,680 8.08%
202,294 GNMA POOL # 203369 8.000% 12/15/16 103.656 209,690 7.72%
15,345 GNMA POOL # 206740 10.000% 10/15/17 106.713 16,376 9.37%
52,809 GNMA POOL # 206762 9.000% 4/15/21 106.499 56,242 8.45%
59,757 GNMA POOL # 207019 8.000% 3/15/17 103.593 61,904 7.72%
9,574 GNMA POOL # 208076 8.000% 4/15/17 103.593 9,919 7.72%
10,941 GNMA POOL # 210520 10.500% 8/15/17 107.844 11,800 9.74%
10,671 GNMA POOL # 210618 9.500% 4/15/17 107.393 11,460 8.85%
58,958 GNMA POOL # 211013 9.000% 1/15/20 106.593 62,845 8.44%
<PAGE>
$ 70,928 GNMA POOL # 211231 8.500% 5/15/17 $105.262 $ 74,660 8.08%
48,597 GNMA POOL # 212601 8.500% 6/15/17 105.262 51,155 8.08%
10,870 GNMA POOL # 218420 8.500% 11/15/21 105.062 11,421 8.09%
167,398 GNMA POOL # 219335 8.000% 5/15/17 103.593 173,413 7.72%
166,938 GNMA POOL # 220703 8.000% 5/15/17 103.593 172,936 7.72%
20,920 GNMA POOL # 220917 8.500% 4/15/17 105.262 22,021 8.08%
248,860 GNMA POOL # 222112 8.000% 1/15/22 103.093 256,557 7.76%
31,116 GNMA POOL # 223126 10.000% 8/15/17 106.713 33,205 9.37%
51,044 GNMA POOL # 223133 9.500% 7/15/17 107.393 54,818 8.85%
12,588 GNMA POOL # 223348 10.000% 8/15/18 106.713 13,433 9.37%
5,575 GNMA POOL # 223588 10.000% 12/15/18 106.761 5,952 9.37%
13,744 GNMA POOL # 224078 10.000% 7/15/18 106.713 14,667 9.37%
50,439 GNMA POOL # 228308 10.000% 1/15/19 106.713 53,826 9.37%
20,681 GNMA POOL # 228483 9.500% 9/15/19 107.368 22,206 8.85%
28,184 GNMA POOL # 230223 9.500% 4/15/18 107.380 30,265 8.85%
12,220 GNMA POOL # 235000 10.000% 1/15/18 106.657 13,034 9.38%
36,635 GNMA POOL # 245580 9.500% 7/15/18 107.380 39,340 8.85%
23,813 GNMA POOL # 247473 10.000% 9/15/18 106.519 25,366 9.39%
82,158 GNMA POOL # 247681 9.000% 11/15/19 106.687 87,652 8.44%
21,035 GNMA POOL # 247872 10.000% 9/15/18 106.761 22,458 9.37%
24,243 GNMA POOL # 250412 8.000% 3/15/18 103.531 25,099 7.73%
30,311 GNMA POOL # 251241 9.500% 6/15/18 107.380 32,549 8.85%
41,925 GNMA POOL # 258911 9.500% 9/15/18 107.380 45,020 8.85%
32,503 GNMA POOL # 260999 9.500% 9/15/18 107.380 34,902 8.85%
17,486 GNMA POOL # 263439 10.000% 2/15/19 106.761 18,669 9.37%
42,700 GNMA POOL # 265267 9.500% 8/15/20 107.355 45,841 8.85%
17,197 GNMA POOL # 266983 10.000% 2/15/19 106.761 18,361 9.37%
7,217 GNMA POOL # 273690 9.500% 8/15/19 107.368 7,750 8.85%
23,052 GNMA POOL # 274489 9.500% 12/15/19 107.368 24,751 8.85%
19,358 GNMA POOL # 275456 9.500% 8/15/19 107.368 20,784 8.85%
39,085 GNMA POOL # 275538 9.500% 1/15/20 107.355 41,960 8.85%
27,757 GNMA POOL # 277205 9.000% 12/15/19 106.687 29,613 8.44%
66,810 GNMA POOL # 285744 9.000% 5/15/20 106.593 71,215 8.44%
53,747 GNMA POOL # 286556 9.000% 3/15/20 106.593 57,291 8.44%
1,026 GNMA POOL # 287999 9.000% 9/15/20 106.593 1,095 8.44%
82,876 GNMA POOL # 289092 9.000% 4/15/20 106.593 88,341 8.44%
8,639 GNMA POOL # 289949 8.500% 7/15/21 105.062 9,077 8.09%
6,305 GNMA POOL # 290700 9.000% 8/15/20 106.593 6,721 8.44%
8,052 GNMA POOL # 291933 9.500% 7/15/20 107.355 8,644 8.85%
19,514 GNMA POOL # 293666 8.500% 6/15/21 105.062 20,503 8.09%
1,034 GNMA POOL # 294209 9.000% 7/15/21 106.499 1,102 8.45%
9,442 GNMA POOL # 297345 8.500% 8/15/20 105.112 9,925 8.09%
18,770 GNMA POOL # 301017 8.500% 6/15/21 105.062 19,721 8.09%
43,246 GNMA POOL # 301366 8.500% 6/15/21 105.062 45,435 8.09%
114,758 GNMA POOL # 302713 9.000% 2/15/21 106.499 122,217 8.45%
8,501 GNMA POOL # 302723 8.500% 5/15/21 105.062 8,932 8.09%
40,764 GNMA POOL # 302781 8.500% 6/15/21 105.062 42,828 8.09%
57,127 GNMA POOL # 302933 8.500% 6/15/21 105.062 60,020 8.09%
95,347 GNMA POOL # 304512 8.500% 5/15/21 105.062 100,174 8.09%
132,619 GNMA POOL # 305091 9.000% 7/15/21 106.499 141,239 8.45%
4,087 GNMA POOL # 306669 8.000% 7/15/21 103.343 4,224 7.74%
<PAGE>
$ 71,156 GNMA POOL # 306693 8.500% 9/15/21 $105.062 $ 74,759 8.09%
85,374 GNMA POOL # 308792 9.000% 7/15/21 106.499 90,923 8.45%
42,837 GNMA POOL # 311087 8.500% 7/15/21 105.062 45,006 8.09%
13,682 GNMA POOL # 314222 8.500% 4/15/22 104.875 14,349 8.10%
70,392 GNMA POOL # 314581 9.500% 10/15/21 107.343 75,561 8.85%
211,566 GNMA POOL # 315187 8.000% 6/15/22 103.093 218,110 7.76%
383,667 GNMA POOL # 315388 8.000% 2/15/22 103.093 395,535 7.76%
264,195 GNMA POOL # 315754 8.000% 1/15/22 103.093 272,367 7.76%
348,325 GNMA POOL # 316240 8.000% 1/15/22 103.093 359,100 7.76%
107,403 GNMA POOL # 316615 8.500% 11/15/21 105.062 112,840 8.09%
121,312 GNMA POOL # 317069 8.500% 12/15/21 105.062 127,453 8.09%
213,839 GNMA POOL # 317351 8.000% 5/15/22 103.093 220,453 7.76%
194,070 GNMA POOL # 317358 8.000% 5/15/22 103.093 200,073 7.76%
188,895 GNMA POOL # 318776 8.000% 2/15/22 103.093 194,738 7.76%
3,756 GNMA POOL # 318793 8.500% 2/15/22 104.875 3,940 8.10%
284,500 GNMA POOL # 319441 8.500% 4/15/22 104.875 298,370 8.10%
119,873 GNMA POOL # 321806 8.000% 5/15/22 103.093 123,581 7.76%
347,634 GNMA POOL # 321807 8.000% 5/15/22 103.093 358,386 7.76%
193,434 GNMA POOL # 321976 8.500% 1/15/22 104.875 202,864 8.10%
392,061 GNMA POOL # 323226 8.000% 6/15/22 103.093 404,188 7.76%
289,315 GNMA POOL # 323929 8.000% 2/15/22 103.093 298,264 7.76%
256,002 GNMA POOL # 325165 8.000% 6/15/22 103.093 263,921 7.76%
51,186 GNMA POOL # 325651 8.000% 6/15/22 103.093 52,769 7.76%
356,303 GNMA POOL # 329540 7.500% 8/15/22 101.156 360,422 7.41%
742,900 GNMA POOL # 329982 7.500% 2/15/23 101.093 751,020 7.42%
226,985 GNMA POOL # 331361 8.000% 11/15/22 103.093 234,007 7.76%
348,626 GNMA POOL # 335746 8.000% 10/15/22 103.093 359,409 7.76%
294,180 GNMA POOL # 335950 8.000% 10/15/22 103.093 303,280 7.76%
1,772,227 GNMA POOL # 336488 7.000% 8/15/23 99.031 1,755,055 7.07%
1,555,643 GNMA POOL # 348103 7.000% 6/15/23 99.031 1,540,569 7.07%
579,123 GNMA POOL # 348213 6.500% 8/15/23 96.718 560,117 6.72%
976,659 GNMA POOL # 350372 7.000% 4/15/23 99.031 967,196 7.07%
1,056,660 GNMA POOL # 350659 7.500% 6/15/23 101.093 1,068,210 7.42%
1,144,054 GNMA POOL # 350938 6.500% 8/15/23 96.718 1,106,507 6.72%
1,260,807 GNMA POOL # 352001 6.500% 12/15/23 96.718 1,219,428 6.72%
952,759 GNMA POOL # 352110 7.000% 8/15/23 99.031 943,527 7.07%
538,540 GNMA POOL # 362628 7.000% 8/15/23 99.031 533,322 7.07%
624,892 GNMA POOL # 363429 7.000% 8/15/23 99.031 618,837 7.07%
753,365 GNMA POOL # 367414 6.000% 11/15/23 94.094 708,871 6.38%
1,226,583 GNMA POOL # 367806 6.500% 9/15/23 96.718 1,186,327 6.72%
1,523,703 GNMA POOL # 368238 7.000% 12/15/23 99.031 1,508,939 7.07%
1,796,600 GNMA POOL # 368502 7.000% 2/15/24 98.969 1,778,078 7.07%
1,519,491 GNMA POOL # 370773 6.000% 11/15/23 94.094 1,429,751 6.38%
2,310,832 GNMA POOL # 372050 6.500% 2/15/24 96.718 2,234,991 6.72%
528,900 GNMA POOL # 372379 8.000% 10/15/26 102.843 543,938 7.78%
839,046 GNMA POOL # 372468 6.500% 12/15/27 96.156 806,794 6.76%
2,266,963 GNMA POOL # 376218 7.500% 8/15/25 100.968 2,288,907 7.43%
838,039 GNMA POOL # 376400 6.500% 2/15/24 96.718 810,535 6.72%
844,737 GNMA POOL # 387189 7.000% 2/15/24 98.969 836,028 7.07%
496,238 GNMA POOL # 398251 7.500% 9/15/25 100.968 501,042 7.43%
966,742 GNMA POOL # 405558 7.500% 1/15/26 100.937 975,801 7.43%
<PAGE>
$ 2,550,024 GNMA POOL # 410215 7.500% 12/15/25 $100.968 $ 2,574,709 7.43%
1,311,096 GNMA POOL # 410915 6.500% 2/15/26 96.406 1,263,976 6.74%
472,617 GNMA POOL # 414736 7.500% 11/15/25 100.968 477,192 7.43%
537,095 GNMA POOL # 417225 7.500% 1/15/26 100.937 542,128 7.43%
1,052,991 GNMA POOL # 417276 7.000% 2/15/26 98.656 1,038,839 7.10%
2,978,864 GNMA POOL # 420707 7.000% 2/15/26 98.656 2,938,824 7.10%
587,654 GNMA POOL # 421829 7.500% 4/15/26 100.937 593,160 7.43%
1,236,576 GNMA POOL # 422506 6.500% 3/15/26 96.406 1,192,134 6.74%
120,704 GNMA POOL # 423114 7.000% 9/15/27 98.656 119,082 7.10%
642,635 GNMA POOL # 424173 7.500% 3/15/26 100.937 648,657 7.43%
454,157 GNMA POOL # 427199 7.000% 12/15/27 98.656 448,054 7.10%
1,354,682 GNMA POOL # 430279 7.000% 10/15/27 98.656 1,336,475 7.10%
331,250 GNMA POOL # 431036 8.000% 7/15/26 102.843 340,668 7.78%
901,462 GNMA POOL # 436214 6.500% 2/15/13 99.000 892,448 6.57%
827,340 GNMA POOL # 436723 7.500% 11/15/26 100.937 835,093 7.43%
2,718,377 GNMA POOL # 436777 7.000% 4/15/27 98.656 2,681,843 7.10%
1,889,895 GNMA POOL # 440166 7.000% 2/15/27 98.656 1,864,495 7.10%
905,333 GNMA POOL # 442063 7.000% 10/15/26 98.656 893,166 7.10%
585,321 GNMA POOL # 442193 7.500% 12/15/26 100.937 590,806 7.43%
967,989 GNMA POOL # 442996 6.000% 6/15/13 96.906 938,040 6.19%
864,921 GNMA POOL # 446943 7.000% 4/15/27 98.656 853,292 7.10%
2,489,925 GNMA POOL # 448490 7.500% 3/15/27 100.937 2,513,256 7.43%
1,442,069 GNMA POOL # 449176 6.500% 7/15/28 96.156 1,386,632 6.76%
1,482,627 GNMA POOL # 457100 6.500% 11/15/28 96.156 1,425,635 6.76%
2,538,671 GNMA POOL # 458672 6.500% 1/15/28 96.156 2,441,085 6.76%
1,248,759 GNMA POOL # 458712 7.000% 11/15/27 98.656 1,231,976 7.10%
446,533 GNMA POOL # 460698 7.000% 10/15/27 98.656 440,532 7.10%
1,436,167 GNMA POOL # 460726 6.500% 12/15/27 96.156 1,380,962 6.76%
1,702,405 GNMA POOL # 462363 7.000% 11/15/27 98.656 1,679,525 7.10%
914,209 GNMA POOL # 462444 6.500% 12/15/27 96.156 879,067 6.76%
1,412,475 GNMA POOL # 462623 6.500% 3/15/28 96.156 1,358,180 6.76%
934,907 GNMA POOL # 468173 7.000% 8/15/28 98.656 922,342 7.10%
948,334 GNMA POOL # 469226 6.500% 3/15/28 96.156 911,880 6.76%
1,978,942 GNMA POOL # 469615 6.500% 10/15/28 96.156 1,902,872 6.76%
1,849,456 GNMA POOL # 472028 6.500% 5/15/28 96.156 1,778,363 6.76%
1,440,994 GNMA POOL # 480030 6.500% 6/15/28 96.156 1,385,603 6.76%
1,939,835 GNMA POOL # 484195 6.500% 8/15/28 96.156 1,865,268 6.76%
3,393,249 GNMA POOL # 486482 6.500% 9/15/28 96.156 3,262,813 6.76%
1,004,662 GNMA POOL # 488924 6.500% 11/15/28 96.156 966,044 6.76%
1,607,891 GNMA POOL # 780429 7.500% 9/15/26 100.937 1,622,953 7.43%
744,535 GNMA POOL # 780518 7.000% 6/15/26 98.656 734,544 7.10%
-----------
Total Government Interests (identified cost, $102,811,996) - 97.8% $101,179,806
COMMERCIAL PAPER - 4.1%
$ 4,255,000 AMERICAN EXPRESS CORP 5.501% 7/01/99 4,255,005 5.50%
-----------
Total Investments (identified cost $107,067,001) - 101.9% $105,434,811
Other Assets, less Liabilities - (1.9%) (1,991,753)
-----------
Net Assets - 100.0% $103,443,058
============
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT INVESTORS' SERVICE DISTRIBUTORS, INC.
1000 Lafayette Boulevard, Bridgeport, CT 06604
SEMI-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
255 State Street
Boston, Massachusetts 02109
INVESTMENT ADVISER
Wright Investors' Service
1000 Lafayette Boulevard
Bridgeport, Connecticut 06604
PRINCIPAL UNDERWRITER
Wright Investors' Service Distributors, Inc.
1000 Lafayette Boulevard
Bridgeport, Connecticut 06604
(800) 888-9471
e-mail: [email protected]
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
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.
