THE WRIGHT MANAGED BLUE CHIP INVESTMENT FUNDS
ANNUAL REPORT
DECEMBER 31 , 1999
THE WRIGHT MANAGED EQUITY TRUST
o Wright Selected 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 three 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 eight 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) 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.
THREE 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 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 control weighted in the selected securities.
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC). This is a broadly
diversified portfolio of equities of well-established, non-U.S. companies
meeting strict quality standards. The portfolio may buy common stocks traded on
the securities exchange of the country in which the company is based or it may
purchase American Depositary Receipts (ADR's) traded in the United States. The
portfolio is denominated in U.S. dollars and investors should understand that
fluctuations in foreign exchange rates may impact the value of their investment.
A MONEY MARKET FUND
WRIGHT U.S. TREASURY MONEY MARKET FUND (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
investment grade 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. 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
Performance Graphs...................................................8
Dividend Distributions and Investment Return........................11
FINANCIAL STATEMENTS
THE WRIGHT MANAGED EQUITY TRUST
Wright Selected Blue Chip Equities Fund....................18
Wright Major Blue Chip Equities Fund.......................20
Wright International Blue Chip Equities Fund...............22
Financial Highlights.......................................24
Notes to Financial Statements..............................29
THE WRIGHT MANAGED INCOME TRUST
Wright U.S. Treasury Fund Money Market Fund................34
Wright U.S. Government Near Term Fund......................36
Wright U.S. Treasury Fund..................................38
Wright Total Return Bond Fund..............................40
Wright Current Income Fund.................................42
Financial Highlights.......................................44
Notes to Financial Statements..............................50
THE WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
Selected 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
INVESTMENT PORTFOLIOS
Wright Major Blue Chip Equities Fund (WMBC)................76
Wright Total Return Bond Fund (WTRB).......................78
Selected Blue Chip Equities Portfolio (SBCP)...............80
International Blue Chip Equities Portfolio (IBCP)..........82
Wright U.S. Treasury Money Market Fund (WTMM)..............84
U.S. Government Near Term Portfolio (NTBP).................85
U.S. Treasury Portfolio (USTBP)............................86
Current Income Portfolio (CIFP)............................87
LETTER TO SHAREHOLDERS
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February 2000
Dear Shareholders:
The early days of trading in 2000 were a chaotic introduction to the New Year.
The 30-year Treasury bond lost more than a point on January 3, the first trading
session of the year, while technology stocks gained 3%. Day two saw bonds
advance sharply and tech stocks drop almost 6%. On the third trading day, bonds
were down again, as were tech stocks, although the Dow staged a significant
rebound.
Apparently, what we said three months ago still pertains: "Market volatility is
likely to remain elevated so long as uncertainties about the direction of
interest rates persist." So far in 2000, investors have in fact continued to
worry about interest rates; the strictly upside volatility in stocks seen during
the fourth quarter of 1999 has been replaced by a two-sided volatility. As
everyone with any memory of historical stock market cycles knows, stocks don't
only go higher. And, while it may be obvious only in hindsight, there is more to
investing than buying last year's winners. In the market's favor going forward
in 2000 is the fact that, outside of the technology sector and select other
investor favorites, valuations in the broad market are quite reasonable.
Meanwhile, the economic backdrop remains mostly positive for financial assets.
The U.S. economy is about to begin its record tenth year of expansion, and while
some slowing is likely, growth should still be quite healthy. In Europe and most
of Asia, business is on the mend. Inflation may tick up modestly this year, but
markets are still quite competitive, continuing to constrain pricing power.
Nevertheless, corporate profits stand to rise in the neighborhood of 10% in the
coming year, as business relentlessly pursues productivity improvements.
The dreaded Y2K changeover has come and gone with little apparent effect on
global economies, corporate operations or securities markets. Billions of
dollars spent by corporations, governments and organizations to prepare for Y2K
averted any serious problems, the likelihood of which had probably been
exaggerated in any case. In Wright's own case, I'm happy to report that the
transition to Y2K was entirely uneventful. About the only Y2K-related thing left
to worry about is the billions in excess cash pumped into the financial system
by the Federal Reserve in the event of a run on the banks. Our view is that this
excess will be worked down gradually in order not to have a material effect on
the securities markets.
That said, the Federal Reserve increased interest rates in February, and it is
widely expected that the Fed will raise rates again at its March FOMC meeting,
an expectation that aggravated selling pressures in stocks and bonds early in
2000. While the interest rate outlook is the most problematic aspect of the year
2000 economic environment, we believe that the bulk of the rise in bond yields
is behind us. On the whole, we look forward to the opportunities and challenges
that lie ahead in 2000.
Once again,I call attention to our Internet site (www.wrightinvestors.com),
which continues to expand in value as a resource to investors. Please let us
know if there is any way that we can better serve your investment needs.
Sincerely,
/s/ Peter M. Donovan
Peter M. Donovan
President
<PAGE>
MANAGEMENT DISCUSSION
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EQUITY FUNDS
Following last summer's correction, global stock prices rebounded strongly in
the fourth quarter to close 1999 at record levels in most major markets. Global
economic conditions continued to firm over the final three months of 1999, led
by the U.S. economy, which completed its fourth straight year of 4% growth.
Corporate profit reports generally made for good reading, and inflation remained
subdued - although the U.S. economy's strong growth, along with improving
business overseas, caused the Federal Reserve to raise interest rates in
November before the Y2K changeover effectively put policy in a
liquidity-supplying mode. Despite higher interest rates, global stock markets
took on an increasingly confident tone as Y2K neared, and every one of the 29
largest national markets advanced in the fourth quarter.
Once again, the technology sector was the prime mover in the fourth quarter
market. Driven by a manic demand for tech stocks, the Nasdaq rose 48% in the
last three months of 1999, bringing its 1999 gain to 86%, the biggest annual
increase ever for a U.S. stock market index. Most stocks didn't fare as well as
Nasdaq in 1999. In fact, while tech stocks were soaring, the NYSE cumulative
advance/decline line hit a four-year low in December. Even Nasdaq saw 2,000 of
its 4,800 constituent stocks decline last year. Clearly, without the great
returns racked up by tech stocks this past year, the S&P 500 would not have been
able to earn its fifth straight yearly return in excess of 20%.
Wright expects that underlying economic conditions will remain favorable for
stocks in the New Year. According to the International Monetary Fund, the world
economy will grow 3.5% in 2000, with inflation staying under 2%. U.S. GDP growth
will probably slow from the 4% pace of the last three years, but growth
approaching 3.5% seems well within the economy's capabilities. Core consumer
prices may rise as much as 2.5% in the U.S. this year; even so, it would still
be the fourth lowest rate in three decades. The Federal Reserve worries that
tight labor markets will boost wages to the point that they can't be offset by
productivity gains, but there is little sign of this yet.
No doubt the steep rise in technology share prices - perhaps the real target of
the Fed's interest rate hikes - has perplexed the Fed, indeed, most of us. From
the Fed's point of view, there was a logical basis for tech stocks to surge 50%
in the six months following the start of Fed easing in September 1998. But how
does one explain the 40% price advance in the six months since the Fed began to
tighten at midyear 1999? So far at least, about the only people chastened by the
Fed's rate hikes have been bond investors and shareholders in companies in the
"old economy" (including many with something most e-businesses lack - profits).
The record highs in the DJIA and the S&P 500 have swelled consumer confidence to
30-year highs. But the wealth effect on economic growth is a two-edged sword.
Should tech stocks lead the rest of the market lower, then consumer spending may
be hard hit by falling confidence. Ironically, this is what the Fed is hoping to
avoid. But it may, in fact, be set on such a course.
<TABLE>
<CAPTION>
1999 1999 1998 1997 1996 1995 1994 1993 1992 1991
Total Return Q4 Year 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) 9.4% 5.8% 0.1% 32.7% 18.6% 30.3% -3.5% 2.1% 4.7% 36.0%
Major Blue Chips (WMBC)
Standard Shares 12.5% 23.9% 20.4% 33.9% 17.6% 29.0% -0.7% 1.0% 8.0% 38.9%
Institutional Shares 13.0% - - - - - - - - -
Int'l Blue Chips (WIBC)
Standard Shares 30.2% 34.3% 6.1% 1.5% 20.7% 13.6% -1.6% 28.2% -3.9% 17.2%
Institutional Shares 30.2% 34.5% 7.5% -6.4%* - - - - - -
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<FN>
*: For the period from July 7, 1997 (inception of offering of institutional
shares) to December 31, 1997.
</FN>
</TABLE>
WRIGHT SELECTED BLUE CHIP EQUITIES FUND
The Wright Selected Blue Chip Fund (WSBC) had a 9.4% return in the fourth
quarter, trailing the S&P 400 MidCap index's return of 17.2%. For all of 1999,
the WSBC had a total return of 5.8%, as compared with 14.7% for the S&P MidCaps.
The portfolio's technology holdings, which amounted to 28% of the fund at
year-end 1999 (S&P 400 = 27%), performed well in absolute terms in the quarter,
but they lagged the even better results of the technology stocks held in the S&P
MidCap index. (Some benchmark tech stocks, such as Veritas Software, Siebel
Systems and Qlogic had returns of better than 125% for the quarter.)
<PAGE>
Stock selection also hindered WSBC results in the consumer staples and capital
goods sectors during the fourth quarter, more than offsetting value added in
basic materials and energy stocks. The fund got positive contributions from
Gateway, Keane, Watson Pharmaceuticals, Synopsis and A.G. Edwards in the
quarter.
The stocks in the WSBC Fund had an average P/E multiple of 21.2 times last
12-month earnings, at December 31, significantly below S&P MidCap 400 27.4 P/E.
The latter includes quite a few companies with nominal or negative earnings.
Historical WSBC growth characteristics compare favorably with those of the S&P
MidCaps; the average rate of growth in cash earnings over the past five years
was 21% vs 15% for the S&P MidCaps. Looking ahead over the next five years, WSBC
earnings are estimated to grow at an 18% annual rate, slightly below the S&P
benchmark's 20% growth target.
WRIGHT MAJOR BLUE CHIP EQUITIES FUND
The Wright Major Blue Chip Fund (WMBC) capped off a strong 1999 with a 12.5%
return in the fourth quarter, a period of strongly rebounding stock prices.
While WMBC's fourth-quarter result trailed that of the S&P 500 by 240 basis
points, the fund outperformed the S&P 500 benchmark by a 23.9% to 21.0% margin
for all of 1999.
In the fourth quarter, the WMBC Fund benefited from stock selection in the
technology sector, where it has a slightly below benchmark weight of 28% (vs 30%
for the S&P 500). Stocks in the consumer staples area were another source of
value added in the fourth quarter. Detracting from WMBC results was the laggard
action of some stocks in the capital goods and consumer cyclicals sectors. Among
the big contributors to results in the last quarter of 1999 were Oracle Systems,
Gateway 2000, EMC Corp. and Sun Microsystems and, among non-technology stocks,
Costco, Avery Dennison and American Express. Fourth-quarter performance was
hampered to some extent by holdings in TJX Cos., Pitney Bowes and Tyco
International, and by underweight positions in America Online and GE.
While the WMBC Fund has averaged slightly better value than the S&P 500 in the
past, it is managed as a Large Cap Blend portfolio (a blend of growth and
value). At December 31, 1999, its holdings averaged a P/E of 24.9 times 12-month
forward earnings, nominally above the S&P 500's 24.6 P/E.
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND
The Wright International Blue Chip Fund (WIBC) earned 31.1% in the fourth
quarter of 1999, which was 17.6% ahead of the FT/S&P Actuaries World ex US
index. Over the 12 months of 1999, WIBC standard shares returned 35.1%, as
compared with 31.8% for the FTSE Actuaries World ex US index. Over the five
years through 1999, the WIBC Fund has returned an average of 2.1% of excess
return per year over the FTSE Actuaries World ex US index.
The WIBC Fund was repositioned substantially during the fourth quarter of 1999.
The portfolio increased its position in Japan and reduced its weight in the
Netherlands. In addition, the fund divested its holdings in Austria, Belgium and
Norway. Industry allocation played an important part in the fund's
fourth-quarter performance. In keeping with the strategy formulated at the
beginning of the quarter, the fund reduced its holdings in basic industries,
consumer discretionary, industrials and utilities whereas it built positions in
telecommunications, technology, financials, health care and energy. A
performance attribution for the fourth-quarter excess returns shows that the
fund added value through its industry selection, its stock selection and also
through its country selection strategy. The countries that helped were Japan,
France, United Kingdom, Hong Kong and Italy. Relative to the benchmark, the fund
was hurt by its positions in Ireland and the Netherlands and its slight
overexposure to the Euro.
Going forward into 2000, the international markets are poised to provide
superior returns in U.S. dollars. While global GDP growth is being upwardly
revised, inflation expectations continue to remain benign. Corporate earnings in
Euroland are being upwardly revised as well and the Euro's weakness versus the
dollar is expected to reverse to some degree in 2000. Thus investors in Euroland
are expected to benefit with stock as well as currency appreciation. Japan, on
the other hand, continues to mend and corporate Japan is moving towards creating
profitability and shareholder value. Asia and Latin America are also expected to
continue to grow. While the first half of 2000 may experience some volatility,
the second half should reward international investors with decent returns.
<PAGE>
FIXED-INCOME FUNDS
Bond investors were a cautious lot in the fourth quarter of 1999 - in fact for
most of 1999. Bonds headed lower in the fourth quarter after a flat performance
- - their best of the year - in the third quarter. Yields on ten-year Treasury
bonds rose by 55 basis points over the October-December period and by 180 bp for
the year. Over the length of the yield curve, the increase averaged 48 bp for
the quarter and 155 for the year. In the fourth quarter, shorter maturities did
better than long, and agency, corporate and mortgage-backed issues outperformed
Treasuries. The Lehman Brothers Treasury Index lost 0.7% for the quarter while
the Lehman U.S. Aggregate index was down about 0.1%. For all of 1999, these
benchmarks declined 2.6% and 0.8%, respectively.
Despite evidence to the contrary, investors still appear to believe that solid
growth inevitably produces higher inflation. Outside of energy and stock prices,
U.S. inflation remained moderate in 1999, with consumer prices ex food and
energy up less than 2%, the lowest rate in more than 30 years. But investors
nevertheless held on to the "growth is bad" posture, which to some degree was
reinforced by the Fed's tightening of monetary policy in 1999. In reversing its
75 basis-point easing of late 1998, the Fed expressed concern that strong demand
and tight labor markets would eventually overcome the benefits of higher
productivity. In the fourth quarter particularly, bonds were also hurt as
investment funds flowed into technology stocks, which produced returns that made
the potential of bonds look dull by comparison.
So far in early 2000, bond prices have continued to move lower. Investors are
nervous about the prospect of more Fed tightening in the new year (although
since inflation is the enemy of bonds, they should, in fact, be encouraged that
the Fed is determined not to get behind the inflation curve). Today's bond
yields offer historically generous real returns in a range of 4.5%. But these
returns look puny compared to recent returns on equities, and bonds may not
start to behave better until equity investors become a little more cautious.
This may be in the cards for 2000; there have already been signs that investors
are not as unequivocally positive on tech stocks as they were in the fourth
quarter of 1999. WIS expects that long-term bond yields will move back under 6%
before the end of 2000.
<TABLE>
<CAPTION>
1999 1999 1998 1997 1996 1995 1994 1993 1992 1991
Total Return Q4 Year 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) 1.1% 4.3% 4.7% 4.8% 4.8% 5.3% 3.6% 2.5% 3.3% n.a.
U.S. Gov. Near-Term Bonds (WNTB) 0.5% 1.9% 6.0% 5.9% 3.9% 11.9% -3.1% 8.0% 6.3% 13.1%
U.S. Treasury Bonds (WUSTB) -0.9% -4.0% 10.0% 9.1% -1.3% 28.2% -8.6% 15.9% 7.1% 17.6%
Total Return Bonds (WTRB) -0.3% -3.9% 9.6% 9.2% 0.9% 22.0% -6.6% 11.0% 7.1% 15.4%
Current Income (WCIF)
Standard Shares 0.2% 0.5% 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%* - - - - - -
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<FN>
*: For the period from July 7, 1997 (inception of offering of institutional
shares) to December 31, 1997.
</FN>
</TABLE>
WRIGHT U.S. TREASURY MONEY MARKET FUND
The Wright U.S. Treasury Money Market Fund (WTMM) returned 1.1% in the fourth
quarter of 1999 and 4.3% for the full year. These returns match those for an
average of Treasury money market funds, but lag the returns of 1.3% for the
quarter and 4.8% for the year posted by 90-day Treasury bills. At the end of the
fourth quarter, the WTMM Fund's average maturity had decreased slightly to 85
days from 89 days three months earlier.
Over the course of the fourth quarter of 1999, the coupon-equivalent yield on
90-day Treasury bills increased 43 basis points to 5.31%. This should result in
a slight boost to the return on money market funds in the near term. Although
the Fed may tighten again in the early part of 2000, WIS believes that the
extent of further Fed action, and hence of further increases in short-term
interest rates, is limited.
<PAGE>
WRIGHT U.S. GOVERNMENT NEAR TERM FUND
In the fourth quarter and for all of 1999, shorter maturity securities did
better than long. For the quarter, the Wright U.S. Government Near-Term Fund
(WNTB) eked out a slightly positive return of 0.5% compared to 0.4% for the
Morningstar average of government near-term bond funds and 0.5% for the Lehman
1-3 year Government index. For all of 1999, the WNTB Fund returned 1.9% compared
to 1.6% for the Morningstar average and 3.0% for the Lehman index.
At the end of 1999, the WNTB Fund's duration was 1.6 years, slightly shorter
than the 1.7 years of the Lehman Composite. Concerns over additional Fed
tightening in early 2000 may put pressure on short-term interest rates in the
near-term, but WIS anticipates moving its duration target slightly longer than
the benchmark sometime later in the year 2000 as market sentiment becomes more
positive. In addition, the fund will continue to increase its holdings of agency
securities, which accounted for 44% of total assets at the end of 1999. At year
end, the WNTB had a yield to maturity of 6.3%.
WRIGHT U.S. TREASURY FUND
The Wright U.S. Treasury Fund (WUSTB), which holds U.S. Treasury issues
exclusively, lost 0.9% in the fourth quarter of 1999, compared to a loss of 0.8%
for the Lehman Brothers Treasury bond composite. For all of 1999, this fund lost
4.0% compared to a loss of 2.6% for the Lehman Treasury composite. In 1999,
short Treasury maturities did better than long Treasuries as interest rates rose
on average 155 basis points over the length of the yield curve. Over the last
five years, this fund has returned an average of 7.8% annually, compared to 7.4%
for the Lehman Treasury composite.
At the end of 1999, the WUSTB Fund had an average duration of 5.2 years and a
yield to maturity of 6.5%. Given the bond market's poor sentiment and ongoing
negative momentum, the fund's current duration is in line with the duration of
the Lehman Treasury composite benchmark. We anticipate lengthening our duration
target sometime over the next several months in light of our expectation that
bond yields will move lower later this year, resulting in higher returns for
intermediate and long-term bonds.
WRIGHT TOTAL RETURN BOND FUND
The Wright Total Return Bond Fund (WTRB) lost 0.3% in the final quarter of 1999,
compared to a loss of 0.4% for the Lehman Brothers Government/Corporate average.
Compared to the WUSTB Fund, the WTRB Fund benefited from its corporate holdings
(42% of assets at year end), agencies (18%) and mortgage-backed holdings (14%),
all of which did better than Treasuries (24%) for the quarter. For all of 1999,
the WTRB Fund lost 3.9%, compared with a loss of 2.1% for the Lehman
Government/Corporate index. The WTRB Fund, which invests in high-quality U.S.
issues, suffered in 1999 as interest rates rose throughout the year from
concerns over rising inflation and fears of Federal Reserve monetary tightening.
The WTRB Fund ended 1999 with an average duration of 5.5 years, slightly longer
than the Lehman Government/Corporate composite (5.3 years). The fund continues
to have an overweighting in non-Treasury issues and has a slightly longer
duration target compared to the benchmark. Yield enhancement should come from
holding the non-Treasury issues and with our expectation that bond yields will
move lower later this year, bonds should have better returns in 2000 than in
1999.
<PAGE>
WRIGHT CURRENT INCOME FUND
In the fourth quarter of 1999, mortgage-backed securities were the best
performing sector of the investment-grade, fixed-income market. The Wright
Current Income Fund (WCIF), which seeks a high rate of current income, was
invested entirely in Ginnie Maes (mortgage-based securities backed by the
Federal government) and a small amount of cash equivalents during the period.
The WCIF returned 0.2% in the October-December period compared to 0.1% estimated
for the Morningstar Government Mortgage fund average. For all of 1999, WCIF
returned 0.5%, compared to 0.3% for the Morningstar average. Over the last five
years, WCIF averaged a 7.3% annual return compared to 6.8% for the benchmark.
In 1999, similar to Treasury yields, mortgage rates rose dramatically. Mortgage
refinancing risk is now lower because of the higher rates. In anticipation of
lower yields ahead, WCIF is weighted toward issues with coupons under 8%. The
WCIF Fund ended 1999 with a yield to maturity of 7.6% and an indicated annual
yield of 6.3%, a roughly four percentage point premium over the current rate of
consumer price inflation. The WCIF Fund had an effective duration of 4.7 years
at the end of December, up from the beginning of 1999.
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%
12/31/99 11,497.12 6.50%
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<PAGE>
IMPORTANT
The Total Investment Return is the percent return of an initial $10,000
investment made at the beginning of the period to the ending redeemable value
assuming all dividends and distributions are reinvested. The investment
results of Funds with less than 10 years are shown from the first month-end
since the Fund's inception for comparison with other averages. FT World ex
U.S. Index refers to the FT/S&P Actuaries World excluding the United States
index of 1,649 equity securities compiled by The Financial Times Limited,
Goldman, Sachs & Co., and Standard & Poor's in conjunction with the Institute
of Actuaries & the Faculty of Actuaries. The Benchmark for the Wright Selected
Blue Chip Equities Fund has been changed this year to the S&P MidCap 400 Index
as this more accurately reflects the fund's investment style of investing
mostly in mid-cap sized equities. The Benchmark for the Wright Major Blue Chip
Equities Fund has been changed to the S&P 500 Index as this is more consistent
with the fund manager's objective. The Benchmark for the Wright U.S.
Government Near Term Fund has been changed to the Lehman Government
Intermediate Index as this is more consistent with the fund manager's
objective. The Lipper Growth Funds Index used in the past is no longer
reported by Lipper as they have defined new categories of investment
objectives. PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
- --------------------------------------------------------------------------------
WRIGHT MANAGED EQUITY TRUST
WRIGHT SELECTED BLUE CHIP EQUITIES FUND
Growth of $10,000 invested 12/31/89 through 12/31/99
Annual Total Return
Lst 1 Yr Lst 5 Yrs Lst 10 Yrs
Wright Selected Blue Chip Equities Fund 5.8% 16.8% 11.4%
S&P MidCap 400 14.7% 23.0% 17.2%
NYSE 10.9% 23.5% 15.8%
The cumulative total return of a U.S. $10,000 investment in the WRIGHT SELECTED
BLUE CHIP EQUITIES FUND on 12/31/89 would have grown to $29,446 by
December 31, 1999
The following plotting points are used for comparison in the total investment
return mountain chart.
Date Wright Selected S&P MidCap NYSE
Blue Chip Fund 400 Index
12/31/89 $10,000 $10,000 $10,000
12/31/90 $ 9,670 $ 9,487 $ 9,618
12/31/91 $13,149 $14,159 $12,642
12/31/92 $13,769 $15,843 $13,658
12/31/93 $14,053 $18,044 $15,164
12/31/94 $13,559 $17,402 $15,146
12/31/95 $17,672 $22,773 $20,429
12/31/96 $20,954 $27,133 $24,905
12/31/97 $27,805 $35,876 $33,089
12/31/98 $27,844 $42,708 $39,223
12/31/99 $29,446 $48,975 $43,487
- -------------------------------------------------------------------------------
WRIGHT MANAGED EQUITY TRUST
WRIGHT MAJOR BLUE CHIP EQUITIES FUND - STANDARD SHARES
Growth of $10,000 invested 12/31/89 through 12/31/99
Annual Total Return
Lst 1 Yr Lst 5 Yrs Lst 10 Yrs
Wright Major Blue Chip Equities Fund 23.9% 24.8% 16.0%
S&P 500 21.0% 28.5% 18.2%
NYSE 10.9% 23.5% 15.8%
The cumulative total return of a U.S. $10,000 investment in the
WRIGHT MAJOR BLUE CHIP EQUITIES FUND - STANDARD SHARES on 12/31/89 would have
grown to $44,264 by December 31, 1999.
The following plotting points are used for comparison in the total investment
return mountain chart.
Date Wright Major Blue NYSE
Chip Fund S&P 500 Index
12/31/89 $10,000 $10,000 $10,000
12/31/90 $ 9,711 $ 9,689 $ 9,618
12/31/91 $13,489 $12,628 $12,642
12/31/92 $14,571 $13,588 $13,658
12/31/93 $14,716 $14,952 $15,164
12/31/94 $14,609 $15,155 $15,146
12/31/95 $18,844 $20,829 $20,429
12/31/96 $22,167 $25,599 $24,905
12/31/97 $29,673 $34,128 $33,089
12/31/98 $35,734 $43,861 $39,223
12/31/99 $44,264 $53,079 $43,487
- --------------------------------------------------------------------------------
WRIGHT MANAGED EQUITY TRUST
WRIGHT MAJOR BLUE CHIP EQUITIES FUND - INSTITUTIONAL SHARES
Growth of $10,000 invested 8/1/99 through 12/31/99
Annual Total Return
Since Inception
Wright Major Blue Chip Equities Fund 10.5%
S&P 500 11.1%
The cumulative total return of a U.S. $10,000 investment in the
WRIGHT MAJOR BLUE CHIP EQUITIES FUND - INSTITUTIONAL SHARES on 8/1/99 would have
grown to $11,046 by December 31, 1999.
The following plotting points are used for comparison in the total investment
return mountain chart.
Date Wright Major Blue
Chip Fund S&P 500
8/1/99 $10,000 $10,000
12/31/99 $11,046 $11,114
-------------------------------------------------------------------------------
<PAGE>
WRIGHT MANAGED EQUITY TRUST
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND - STANDARD SHARES
Growth of $10,000 invested 12/31/89 through 12/31/99
Annual Total Return
Lst 1 Yr Lst 5 Yrs Lst 10 Yrs
Wright Int'l Blue Chip Equities Fund -
Standard Shares 35.1% 14.8% 10.2%
FT World Ex U.S. Index 31.8% 12.7% 7.0%
The cumulative total return of a U.S. $10,000 investment in the
WRIGHT INT'L BLUE CHIP EQUITIES FUND - STANDARD SHARES on 12/31/89 would have
grown to $26,399 by December 31, 1999.
The following plotting points are used for comparison in the total investment
return mountain chart.
Date Wright Int'l Blue Chip FT World Ex U.S.
Equities Fund Index
12/31/89 $10,000 $10,000
12/31/90 $9,308 $7,688
12/31/91 $10,910 $8,712
12/31/92 $10,480 $7,573
12/31/93 $13,438 $10,016
12/31/94 $13,218 $10,854
12/31/95 $15,017 $11,988
12/31/96 $18,130 $12,767
12/31/97 $18,408 $12,869
12/31/98 $19,538 $14,950
12/31/99 $26,399 $19,708
- --------------------------------------------------------------------------------
WRIGHT MANAGED EQUITY TRUST
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND - INSTITUTIONAL SHARES
Growth of $10,000 invested 7/31/97* through 12/31/99
Annual Total Return
Lst 1 Yr Since Incept*
Wright Int'l Blue Chip Equities Fund 34.5% 14.0%
FT World Ex U.S. Index 31.8% 13.7%
The cumulative total return of a U.S. $10,000 investment in the
WRIGHT INT'L BLUE CHIP EQUITIES FUND - INSTITUTIONAL SHARES on 7/31/97 would
have grown to $13,733 by December 31, 1999.
The following plotting points are used for comparison in the total investment
return mountain chart.
Date Wright Int'l Blue Chip FT World Ex U.S.
Equities Fund Index
07/31/97 $10,000 $10,000
12/31/97 $9,495 $8,903
12/31/98 $10,211 $10,343
12/31/99 $13,733 $13,634
- --------------------------------------------------------------------------------
WRIGHT MANAGED INCOME TRUST
WRIGHT U.S. GOVERNMENT NEAR TERM FUND
Growth of $10,000 invested 12/31/89 through 12/31/99
Annual Total Return
Lst 1 Yr Lst 5 Yrs Lst 10 Yrs
Wright U.S. Government
Near Term Fund 1.9% 5.9% 6.1%
Lehman Gov't Intermediate 0.5% 6.9% 7.1%
The cumulative total return of a U.S. $10,000 investment in the
WRIGHT U.S.GOVERNMENT NEAR TERM FUND on 12/31/89 would have grown to $18,108
by December 31, 1999.
The following plotting points are used for comparison in the total investment
return mountain chart.
Date Wright U.S. Government Lehman Gov't
Near Term Bond Fund Intermediate
12/31/89 $10,000 $10,000
12/31/90 $10,823 $10,956
12/31/91 $12,239 $12,501
12/31/92 $13,004 $13,368
12/31/93 $14,039 $14,460
12/31/94 $13,604 $14,207
12/31/95 $15,228 $16,255
12/31/96 $15,828 $16,915
12/31/97 $16,766 $18,221
12/31/98 $17,768 $19,768
12/31/99 $18,108 $19,864
- --------------------------------------------------------------------------------
WRIGHT MANAGED INCOME TRUST
WRIGHT U.S. TREASURY FUND
Growth of $10,000 invested 12/31/89 through 12/31/99
Annual Total Return
Lst 1 Yr Lst 5 Yrs Lst 10 Yrs
Wright U.S. Treasury Fund -4.0% 7.8% 7.5%
Lehman Gov't/Corp Index -2.1% 7.6% 7.7%
The cumulative total return of a U.S. $10,000 investment in the
WRIGHT U.S. TREASURY FUND on 12/31/89 would have grown to $20,663 by
December 31, 1999.
The following plotting points are used for comparison in the total investment
return mountain chart.
Date Wright U.S. Lehman Gov't/Corp
Treasury Fund Index
12/31/89 $10,000 $10,000
12/31/90 $10,633 $10,828
12/31/91 $12,500 $12,574
12/31/92 $13,384 $13,528
12/31/93 $15,512 $15,020
12/31/94 $14,174 $14,493
12/31/95 $18,169 $17,282
12/31/96 $17,939 $17,783
12/31/97 $19,569 $19,519
12/31/98 $21,517 $21,368
12/31/99 $20,663 $20,909
- --------------------------------------------------------------------------------
<PAGE>
WRIGHT MANAGED INCOME TRUST
WRIGHT TOTAL RETURN BOND FUND
Growth of $10,000 invested 12/31/89 through 12/31/99
Annual Total Return
Lst 1 Yr Lst 5 Yrs Lst 10 Yrs
Wright Total Return Bond Fund -3.9% 7.2% 6.7%
Lehman Gov't/Corp Index -2.1% 7.6% 7.7%
The cumulative total return of a U.S. $10,000 investment in the
WRIGHT TOTAL RETURN BOND FUND on 12/31/89 would have grown to $19,111 by
December 31, 1999.
The following plotting points are used for comparison in the total investment
return mountain chart.
Date Wright Total Retun Lehman Gov't/Corp
Bond Fund Index
12/31/89 $10,000 $10,000
12/31/90 $10,529 $10,828
12/31/91 $12,149 $12,574
12/31/92 $13,014 $13,528
12/31/93 $14,449 $15,020
12/31/94 $13,502 $14,493
12/31/95 $16,469 $17,282
12/31/96 $16,617 $17,783
12/31/97 $18,153 $19,519
12/31/98 $19,889 $21,368
12/31/99 $19,111 $20,909
- --------------------------------------------------------------------------------
WRIGHT MANAGED INCOME TRUST
WRIGHT CURRENT INCOME FUND - STANDARD SHARES
Growth of $10,000 invested 12/31/89 through 12/31/99
Annual Total Return
Lst 1 Yr Lst 5 Yrs Lst 10 Yrs
Wright Current Income Fund 0.5% 7.3% 7.1%
Lehman Mtg-Backed index 1.9% 8.0% 7.8%
The cumulative total return of a U.S. $10,000 investment in the WRIGHT CURRENT
INCOME FUND - STANDARD SHARES on 12/31/89 would have grown to $19,858 by
December 31, 1999.
The following plotting points are used for comparison in the total investment
return mountain chart.
Date Wright Current Lehman Mtg-Backed
Income Fund Index
12/31/89 $10,000 $10,000
12/31/90 $10,985 $11,072
12/31/91 $12,667 $12,813
12/31/92 $13,520 $13,705
12/31/93 $14,411 $14,643
12/31/94 $13,939 $14,407
12/31/95 $16,373 $16,828
12/31/96 $17,085 $17,728
12/31/97 $18,547 $19,411
12/31/98 $19,755 $20,762
12/31/99 $19,858 $21,147
- --------------------------------------------------------------------------------
WRIGHT MANAGED INCOME TRUST
WRIGHT CURRENT INCOME FUND - INSTITUTIONAL SHARES
Growth of $10,000 invested 7/31/97* through 12/31/99
Annual Total Return
Lst 1 Yr Since Incept*
Wright Current Income Fund 0.6% 4.3%
Lehman Mtg-Backed Index -2.1% 5.1%
The cumulative total return of a U.S. $10,000 investment in the WRIGHT CURRENT
INCOME BOND FUND - INSTITUTIONAL SHARES on 7/31/97 would have grown to $11,065
by December 31, 1998.
The following plotting points are used for comparison in the total investment
return mountain chart.
Date Wright Current Lehman Mtg-Backed
Income Fund Index
07/31/97 $10,000 $10,000
12/31/97 $10,323 $10,365
12/31/98 $11,000 $11,347
12/31/99 $11,065 $11,267
- --------------------------------------------------------------------------------
<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 Value Invstmnt Invstmnt Invstmnt Invstmnt
Ending Share $ P/S in Shares Owned of $1,000 Return Return Return Return
Investment (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%
Jul.99 18.10 405.30 7,335.99 5.34% 16.07% 11.19% 12.78%
Aug.99 17.36 405.30 7,036.07 20.75% 14.28% 10.56% 12.43%
Sep.99 16.99 0.015 0.000857 405.65 6,892.00 14.77% 14.35% 10.44% 12.23%
Oct.99 17.78 405.65 7,212.47 8.54% 15.31% 11.33% 12.46%
Nov.99 17.87 405.65 7,248.98 5.54% 16.27% 11.28% 12.43%
Dec.99 15.13 3.264 0.228411 498.31 7,539.37 5.75% 16.78% 11.40% 12.63%
- ---------------------------------------------------------------------------------------------------------------------------------
THE EQUITY TRUST -- WRIGHT MAJOR BLUE CHIP EQUITIES FUND (WMBC)
Standard Shares
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%
Jul.99 15.32 503.50 7,713.59 25.16% 22.86% 14.92% 15.68%
Aug.99 15.37 503.50 7,738.76 44.01% 22.00% 14.80% 15.61%
Sep.99 15.01 0.010 0.000648 503.82 7,562.40 36.15% 21.98% 14.63% 15.32%
Oct.99 15.86 503.82 7,990.65 30.25% 22.99% 15.67% 15.67%
Nov.99 16.21 503.82 8,166.99 24.16% 24.31% 15.85% 15.75%
Dec.99 16.29 0.589 0.037684 522.81 8,511.35 23.87% 24.82% 16.04% 15.98%
Institutional Shares
7/14/99 $10.00 100.00 $1,000.00
Jul.99 9.70 100.00 971.00 -2.90% - - -2.90%
Aug.99 9.70 100.00 970.00 -3.00% - - -3.00%
Sep.99 9.49 100.00 949.00 -5.10% - - -5.10%
Oct.99 10.04 100.00 1,004.00 0.40% - - 0.40%
Nov.99 10.26 100.00 1,026.00 2.60% - - 2.60%
Dec.99 10.11 0.579 0.059876 105.99 1,072.59 7.26% - - 7.26%
<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%
Jul.99 15.92 129.80 2,066.48 -1.64% 7.56% - 7.63%
Aug.99 16.04 129.80 2,082,06 17.18% 7.33% - 7.64%
Sep.99 16.21 129.80 2,104.12 20.46% 8.03% 7.58% 7.69%
Oct.99 16.84 129.80 2,185.90 16.47% 8.43% 8.58% 8.03%
Nov.99 18.34 129.80 2,380.61 21.24% 11.39% 9.28% 8.87%
Dec.99 18.90 2.010 0.116997 144.99 2,740.31 34.26% 14.84% 10.19% 10.36%
- --------------------------------------------------------------------------------------------------------------------------------
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%
Jul.99 8.57 119.09 1,020.61 -1.39% -- -- 0.99%
Aug.99 8.64 119.09 1,028.94 17.45% -- -- 1.33%
Sep.99 8.73 119.09 1,039.66 20.81% -- -- 1.76%
Oct.99 9.07 119.09 1,080.15 16.83% -- -- 3.38%
Nov.99 9.88 119.09 1,176.62 21.43% -- -- 7.01%
Dec.99 9.16 2.010 0.241297 147.83 1,354.09 34.49% -- -- 12.97%
- --------------------------------------------------------------------------------------------------------------------------------
</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%
Jul. 31 0.003555 1,023.97 4.19% 4.11% 4.13%
Aug. 31 0.003602 1,027.65 4.24% 4.19% 4.15%
Sep. 30 0.003539 1,031.29 4.31% 4.26% 4.18%
Oct. 31 0.003661 1,035.07 4.31% 4.30% 4.21%
Nov. 30 0.003615 1,038.81 4.40% 4.35% 4.24%
Dec. 31 0.003911 1,042.87 4.60% 4.46% 4.29%
----------
Total $0.042054
(a): Assumes reinvestment of monthly dividends.
</TABLE>
- -------------------------------------------------------------------------------
<PAGE>
<TABLE>
<CAPTION>
N.A.V. Distri- Distri- Value 12 Month 5 Year 10 Year Cum.
Period Per bution bution Shares of $1,000 Invstmnt Invstmnt Invstmnt Invstmnt
Ending Share $ P/S in Shares Owned Investment 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%
7/99 10.03 0.045204 0.004507 324.645 3,256.19 3.56% 5.46% 6.23% 7.65%
8/99 10.00 0.045318 0.004532 326.116 3,261.16 2.54% 5.46% 6.37% 7.62%
9/99 10.01 0.044947 0.004490 327.581 3,279.08 1.75% 5.70% 6.39% 7.61%
10/99 9.99 0.045421 0.004547 329.070 3,287.41 1.75% 5.74% 6.21% 7.59%
11/99 9.96 0.044156 0.004433 330.529 3,292.07 2.03% 5.90% 6.15% 7.56%
12/99 9.93 0.044204 0.004452 332.000 3,296.76 1.91% 5.89% 6.12% 7.53%
---------
Total $0.530667
- ---------------------------------------------------------------------------------------------------------------------------------
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 0.004456 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%
7/99 13.41 0.060514 0.004513 329.473 4,418.24 1.80% 7.39% 7.74% 9.72%
8/99 13.34 0.059959 0.004495 330.954 4,414.93 -1.25% 7.54% 8.01% 9.66%
9/99 13.37 0.059139 0.004423 332.418 4,444.43 -3.72% 8.35% 8.05% 9.66%
10/99 13.32 0.060859 0.004569 333.937 4,448.04 -3.26% 8.48% 7.69% 9.61%
11/99 13.22 0.060369 0.004567 335.462 4,434.81 -3.16% 8.32% 7.59% 9.54%
12/99 12.89 0.060946 0.004728 341.808 4,405.91 -3.97% 7.83% 7.53% 9.44%
---------
Total $0.950094
- ---------------------------------------------------------------------------------------------------------------------------------
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%
7/99 12.35 0.056644 0.004587 324.991 4,013.63 0.72% 6.72% 6.85% 9.06%
8/99 12.26 0.057011 0.004650 326.502 4,002.91 -1.73% 6.64% 7.06% 9.00%
9/99 12.33 0.056373 0.004572 327.995 4,044.17 -3.89% 7.20% 7.14% 9.02%
10/99 12.30 0.056798 0.004618 329.509 4,052.96 -2.80% 7.32% 6.83% 8.98%
11/99 12.25 0.056374 0.004602 331.026 4,055.06 -3.08% 7.42% 6.76% 8.94%
12/99 12.10 0.077447 0.006378 333.139 4,030.98 -3.91% 7.19% 6.69% 8.85%
---------
Total $0.695728
- -----------------------------------------------------------------------------------------------------------------------------------
<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%
7/99 10.18 0.051303 0.005040 247.613 2,520.70 1.58% 6.77% 7.24% 7.81%
8/99 10.12 0.052191 0.005157 248.890 2,518.77 0.62% 6.74% 7.39% 7.75%
9/99 10.23 0.053104 0.005191 250.182 2,559.36 0.79% 7.45% 7.49% 7.83%
10/99 10.23 0.052216 0.005183 251.479 2,572.63 1.67% 7.65% 7.31% 7.82%
11/99 10.18 0.051805 0.005218 252.791 2,573.41 1.20% 7.70% 7.19% 7.77%
12/99 10.09 0.052745 0.005227 254.112 2,563.99 0.52% 7.33% 7.10% 7.69%
---------
Total $0.619588
- ---------------------------------------------------------------------------------------------------------------------------------
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%
7/99 9.69 0.050029 0.005163 113.513 1,099.94 -1.13% -- -- 4.72%
8/99 9.63 0.050508 0.005245 114.108 1,098.86 -1.22% -- -- 4.48%
9/99 9.74 0.052102 0.005349 114.719 1,117.36 0.44% -- -- 5.09%
10/99 9.74 0.053025 0.005361 115.334 1,123.35 0.98% -- -- 5.14%
11/99 9.69 0.053118 0.005346 115.950 1,123.56 1.00% -- -- 4.97%
12/99 9.60 0.051664 0.005382 116.574 1,119.11 0.60% -- -- 4.63%
---------
Total $0.609849
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
WRIGHT MANAGED EQUITY TRUST
- -------------------------------------------------------------------------------
WRIGHT SELECTED BLUE CHIP EQUITIES FUND (WBC)
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1999
- -------------------------------------------------------------------------------
ASSETS:
Investments in portfolio, at value
(identified cost, $58,831,401) (Note 1A) $ 74,415,242
------------
Receivable for fund shares sold......... 340,676
------------
Total assets.......................... $ 74,755,918
------------
LIABILITIES:
Payable for fund shares reacquired...... $ 183,382
Distributions payable................... 13,299
Accrued expenses and other liabilities.. 11,880
------------
Total liabilities..................... $ 208,561
------------
NET ASSETS................................ $ 74,547,357
=============
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................... $ 51,027,406
Accumulated undistributed net realized gain
on investments (computed on the basis of
identified cost)....................... 7,011,583
Unrealized appreciation of investments
(computed on the basis of identified cost) 15,583,841
Undistributed net investment income..... 924,527
------------
Net assets applicable to outstanding shares $ 74,547,357
=============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING............................ 4,928,497
=============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST................. $15.13
=============
STATEMENT OF Operations
For the Year Ended December 31, 1999
- -------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1C):
Income -
Dividend income allocated from portfolio $ 2,022,460
Interest income allocated from portfolio 113,744
Expenses allocated from portfolio...... (1,187,299)
------------
Investment income..................... $ 948,905
------------
Expenses -
Administrator fee (Note 2)............. $ 24,115
Compensation of Trustees not employees of the
investment adviser or administrator... 3,278
Custodian fee (Note 1D)................ 21,287
Distribution expenses (Note 3)......... 353,111
Transfer and dividend disbursing agent fees 52,419
Audit services......................... 13,900
Legal services......................... 2,669
Printing............................... 6,635
Registration costs .................... 31,417
Miscellaneous.......................... 10,929
------------
Total expenses........................ $ 519,760
------------
Deduct -
Reduction of distribution expenses
by principal underwriter (Note 3) .... $ (80,386)
------------
Net expenses........................ $ 439,374
------------
Net investment income............. $ 509,531
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investment transactions from
portfolio (identified cost basis)...... $41,165,564
Change in unrealized appreciation
of investments ........................ (40,029,553)
------------
Net realized and unrealized gain on
investments............................. $ 1,136,011
------------
Net increase in net assets from operations $ 1,645,542
=============
See notes to financial statements
<PAGE>
WRIGHT MANAGED EQUITY TRUST
- -------------------------------------------------------------------------------
WRIGHT SELECTED BLUE CHIP EQUITIES FUND (WBC)
Year Ended
December 31
----------------------------------
STATEMENTS OF CHANGES IN NET ASSETS 1999 1998
- -------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From operations -
Net investment income.................$ 509,531 $ 1,167,164
Net realized gain on investments...... 41,165,564 15,538,125
Change in unrealized appreciation
(depreciation) of investments........ (40,029,553) (20,336,710)
------------ ------------
Net increase (decrease) in net
assets resulting from operations $ 1,645,542 $ (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 ......... $ (448,820) $ (1,166,044)
From net realized gain.............. (16,856,408) (16,414,262)
In excess of net realized gain..... - (845,717)
-------------- --------------
Total distributions.............. $(17,305,228) $(18,426,023)
--------------- --------------
Net decrease in net assets from
fund share transactions (Note 4) -... $(130,757,524) $(16,388,843)
---------------- ---------------
Net decrease in net assets........... $(146,417,210) $(38,446,301)
NET ASSETS:
At beginning of year.................. $ 220,964,567 $259,410,868
-------------- -------------
At end of year....................... $ 74,547,357 $220,964,567
============== ==============
UNDISTRIBUTED NET INVESTMENT INCOME
INCLUDED IN NET ASSETS AT
END OF PERIOD...................... $ 924,527 $ 924,380
============== ==============
See notes to financial statements
<PAGE>
WRIGHT MANAGED EQUITY TRUST
- -------------------------------------------------------------------------------
WRIGHT MAJOR BLUE CHIP EQUITIES FUND (WMBC)
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1999
- -------------------------------------------------------------------------------
ASSETS:
Investments -
Identified cost....................... $117,041,035
Unrealized appreciation............... 28,519,164
------------
Total investments, at value (Note 1A)... $145,560,199
Cash.................................... 3,536,262
Dividend and interest receivable........ 61,808
Other assets............................ 1,920
------------
Total assets.......................... $149,160,189
------------
LIABILITIES:
Payable for investments purchased....... $ 2,002,398
Payable for fund shares reacquired...... 733,662
Accrued expenses and other liabilities.. 22,802
Investment adviser fee payable.......... 170
Distribution fee payable................ 5,654
------------
Total liabilities..................... $ 2,764,686
------------
NET ASSETS................................ $146,395,503
=============
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................... $116,853,260
Accumulated undistributed net realized gain
on investments (computed on the basis
of identified cost).................... 1,235,792
Unrealized appreciation of investments
(computed on the basis of identified cost) 28,519,164
Distributions in excess of net
investment income...................... (212,713)
------------
Net assets applicable to outstanding
shares................................ $146,395,503
=============
Computation of net asset value, offering
and redemption price per share:
Standard shares:
Net assets............................ $144,358,636
=============
Shares of beneficial interest
outstanding.......................... 8,862,733
=============
Net asset value, offering price and redemption
price per share of beneficial interest $16.29
=============
Institutional shares:
--------------------
Net assets............................ $ 2,036,867
=============
Shares of beneficial interest outstanding 201,413
=============
Net asset value, offering price and redemption
price per share of beneficial interest $10.11
=============
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1999
- -------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1C):
Income -
Dividend income........................ $ 1,219,152
Interest income........................ 173,613
------------
Investment income..................... $ 1,392,765
------------
Expenses -
Investment adviser fee (Note 2)........ $ 490,732
Administrator fee - (Note 2)........... 212,534
Compensation of Trustees not employees of the
investment adviser or administrator... 2,458
Custodian fee - Standard shares (Note 1D) 63,660
Custodian fee - Institutional shares (Note 1D) 663
Distribution expenses - Standard shares (Note 3)261,414
Transfer and dividend disbursing agent fees
- Standard shares..................... 48,828
Transfer and dividend disbursing agent fees
- Institutional shares................ 150
Printing............................... 4,965
Audit services......................... 29,178
Legal services......................... 7,016
Registration costs - Standard shares... 23,190
Registration costs - Institutional shares 2,785
Miscellaneous.......................... 8,684
------------
Total expenses........................ $ 1,156,257
------------
Deduct -
Waiver of administrator fee
- Institutional shares (Note 2)....... $ (113)
Reduction of distribution expenses by principal
underwriter - Standard shares (Note 3) (48,817)
------------
Total deductions...................... $ (48,930)
------------
Net expenses........................ $ 1,107,327
------------
Net investment income............. $ 285,438
------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investment transactions
(identified cost basis)................ $ 7,887,196
Change in unrealized appreciation of
investments............................ 16,582,999
------------
Net realized and unrealized gain
on investments......................... $24,470,195
------------
Net increase in net assets from operations $24,755,633
=============
See notes to financial statements
<PAGE>
WRIGHT MANAGED EQUITY TRUST
- -------------------------------------------------------------------------------
WRIGHT MAJOR BLUE CHIP EQUITIES FUND
Year Ended
December 31
----------------------------
STATEMENTS OF CHANGES IN NET ASSETS 1999 1998
- -------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From operations -
Net investment income............... $ 285,438 $ 159,430
Net realized gain on investments.... 7,887,196 2,790,260
Change in unrealized appreciation
of investments..................... 16,582,999 5,697,987
------------ ------------
Net increase in net assets
resulting from operations........ $ 24,755,633 $ 8,647,677
------------ ------------
Distributions to shareholders (Note 1G) -
From net investment income -
Standard shares.................... $ (285,301) $ (147,022)
In excess of net investment income -
Standard shares.................... (40,529) -
From net realized gain -
Standard shares.................... (4,869,756) (2,286,379)
From net realized gain -
Institutional shares............... (49,123) -
In excess of net realized gain -
Institutional shares............... (57,483) -
------------ ------------
Total distributions.............. $ (5,302,192) $ (2,433,401)
------------ ------------
Net increase in net assets from
fund share transactions (Note 4)
Standard shares.................... $ 74,094,629 $ 16,943,444
Institutional shares............... $ 1,968,967 $ -
------------ ------------
Net increase in net assets from fund
share transactions.................. $ 76,063,596 $ 16,943,444
------------ ------------
Net increase in net assets........... $ 95,517,037 $ 23,157,720
NET ASSETS:
At beginning of year................ 50,878,466 27,720,746
------------ ------------
At end of year...................... $146,395,503 $ 50,878,466
============== ==============
DISTRIBUTIONS IN EXCESS OF NET
INVESTMENT INCOME INCLUDED IN NET
ASSETS AT END OF PERIOD................ $ (252,877) $ (212,485)
============== ==============
See notes to financial statements
<PAGE>
WRIGHT MANAGED EQUITY TRUST
- -------------------------------------------------------------------------------
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC)
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1999
- -------------------------------------------------------------------------------
ASSETS:
Investment in portfolio, at value
(identified cost, $117,591,891) (Note 1A) 171,811,981
Receivable for fund shares sold......... 20,209
Other assets............................ 55,900
------------
Total assets.......................... $171,888,090
------------
LIABILITIES:
Payable for fund shares reacquired...... $ 8,245
Accrued expenses and other liabilities.. 15,417
------------
Total liabilities..................... $ 23,662
------------
NET ASSETS................................ $171,864,428
============
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................... $117,254,177
Accumulated undistributed net realized gain on
investments and foreign currency (computed
on the basis of identified cost)....... 1,137
Unrealized appreciation of investments
and translation of assets and liabilities
in foreign currency(computed on the basis
of identified cost).................... 54,220,090
Undistributed net investment income..... 389,024
------------
Net assets applicable to outstanding
shares................................ $171,864,428
=============
Computation of net asset value, offering and redemption price per share:
Standard shares:
Net assets............................ $147,609,951
=============
Shares of beneficial interest outstanding 7,809,739
=============
Net asset value, offering price, and redemption
price per share of beneficial interest $18.90
=============
Institutional shares:
Net assets............................ $24,254,477
=============
Shares of beneficial interest outstanding 2,646,904
=============
Net asset value, offering price, and
redemption price per share
of beneficial interest.............. $9.16
=============
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1999
- -------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1C):
Income -
Dividend income allocated from portfolio $ 2,598,115
Interest income allocated from portfolio 160,213
Less: Foreign taxes allocated from portfolio (304,213)
Expenses allocated from portfolio...... (1,898,291)
------------
Investment income..................... $ 555,824
------------
Expenses -
Administrator fee (Note 2)............. $ 26,865
Compensation of Trustees not employees of
the investment adviser or administrator 3,288
Custodian fee - Standard shares (Note 1D) 21,613
Custodian fee - Institutional shares (Note 1D) 10,713
Distribution expenses-Standard shares (Note 3) 373,329
Transfer and dividend disbursing agent fees
-Standard shares...................... 56,304
Transfer and dividend disbursing agent fees
-Institutional shares................. 4,590
Printing............................... 7,953
Audit services......................... 13,900
Legal services......................... 3,593
Registration costs - Standard shares... 21,121
Registration costs - Institutional shares 4,935
Miscellaneous.......................... 11,109
------------
Total expenses........................ $ 559,313
------------
Net investment loss............... $ (3,489)
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investment and foreign
currency transactions from portfolio
(identified cost basis)................ $33,096,688
Change in unrealized appreciation
of investments and translation of
assets and liabilities in foreign
currencies from portfolio.............. 12,487,904
------------
Net realized and unrealized gain on
investments............................ $ 45,584,592
------------
Net increase in net assets from
operations........................... $ 45,581,103
=============
See notes to financial statements
<PAGE>
WRIGHT MANAGED EQUITY TRUST
- -------------------------------------------------------------------------------
WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC)
Year Ended
December 31
------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS 1999 1998
- --------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From operations -
Net investment income (loss)........ $ (3,489) $ 1,211,297
Net realized gain on investments.... 33,096,688 20,726,523
Change in unrealized appreciation
(depreciation) of investments....... 12,487,904 (11,296,007)
------------ ------------
Net increase in net asset
resulting from operations........ $ 45,581,103 $ 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.................. (17,985,521) (10,461,145)
Institutional shares............. (4,888,914) (1,854,640)
------------ ------------
Total distributions.............. $(22,874,435) $(13,427,775)
------------ ------------
Net increase (decrease) in net assets
from fund share transactions (Note 4) -
Standard shares.................. $(67,103,489) $(18,251,870)
Institutional shares............. 4,423,914 (24,916,881)
------------ ------------
Net decrease in net assets from fund
share transactions.................. $(62,679,575) $(43,168,751)
------------ ------------
Net decrease in net assets.......... $(39,972,907) $(45,954,713)
NET ASSETS:
At beginning of year............... 211,837,335 257,792,048
------------ ------------
At end of year..................... $171,864,428 $211,837,335
============== ==============
UNDISTRIBUTED (DISTRIBUTIONS IN
EXCESS OF) NET INVESTMENT INCOME
INCLUDED IN NET ASSETS AT END OF PERIOD $ 389,024 $ (702,820)
============== ==============
See notes to financial statements
<PAGE>
WRIGHT MANAGED EQUITY TRUST
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Year Ended December 31,
-------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
Wright Selected Blue Chip Equities Fund 1999 1998 1997 1996 1995
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......... $ 17.630 $ 19.200 $ 17.730 $ 16.830 $ 13.850
-------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment income(*)............... $ 0.181 $ 0.095 $ 0.133 $ 0.204 $ 0.226
Net realized and unrealized gain (loss) 0.638 (0.139) 5.172 2.886 3.904
-------- -------- -------- -------- --------
Total income (loss)
from investment operations......... $ 0.819 $ (0.044) $ 5.305 $ 3.090 $ 4.130
-------- -------- -------- -------- --------
Less distributions:
Dividends from investment income....... $ (0.055) $ (0.090) $ (0.145) $ (0.200) $ (0.200)
Distributions from capital gains....... (3.264) (1.366) (3.690) (1.990) (0.840)
In excess of net realized gain on investments - (0.070) - - (0.110)
-------- -------- -------- -------- --------
Total distributions................ $ (3.319) $ (1.526) $ (3.835) $ (2.190) $ (1.150)
-------- -------- -------- -------- --------
Net asset value, end of year................ $ 15.130 $ 17.630 $ 19.200 $ 17.730 $ 16.830
========== ========== ========== ========== ==========
Total return(1)............................. 5.75% 0.14% 32.70% 18.57% 30.34%
Ratios/Supplemental Data(*):
Net assets, end of year (000 omitted).. $ 74,547 $ 220,965 $ 259,411 $ 208,166 $217,588
Ratio of net expenses to average net assets 1.16%(3) 1.11%(3) 1.08%(3) 1.04% 1.04%
Ratio of net expenses after custodian fee
reduction to average net assets..... 0.32% - - - -
Ratio of net investment income to average
net assets.......................... 0.36% 0.46% 0.75% 1.15% 1.44%
Portfolio turnover rate .............. 106%(4) 78%(4) 10%(2) 43%(2) 44%(2)
- -----------------------------------------------------------------------------------------------------------------------------------
<FN>
* For the year ended December 31, 1999, the distributor reduced its fees. Had
such action not been undertaken, net investment income per share and the
ratios would have been as follows:
1999
Net investment income per share........ $ 0.161
==========
Ratios (As a percentage of average net assets):
Expenses........................... 1.20%(3)
==========
Expenses after custodian fee reduction(5) 0.36%
==========
Net investment income.............. 0.32%
==========
- --------------------------------------------------------------------------------
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.
3 Includes each fund's share of its corresponding portfolio's allocated expenses.
4 Represents portfolio turnover rate of the fund's corresponding portfolio.
5 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.
</FN>
</TABLE>
See notes to financial statements
<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
- ----------------------------------------------------------------------------------------------------------------------------------
Standard Shares
----------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......... $ 13.670 $ 12.020 $ 12.450 $ 12.650 $ 11.390
-------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment income(1)............... $ 0.042 $ 0.091 $ 0.100 $ 0.064 $ 0.153
Net realized and unrealized gain....... 3.202 2.324 3.515 2.131 3.107
-------- -------- -------- -------- --------
Total income
from investment operations......... $ 3.244 $ 2.415 $ 3.615 $ 2.195 $ 3.260
-------- -------- -------- -------- --------
Less distributions:
Dividends from investment income....... $ (0.039) $ (0.055) $ (0.085) $ (0.120) $ (0.160)
In excess of investment income......... (0.006) - - - -
Distributions from capital gains....... (0.579) (0.710) (3.960) (2.275) (1.840)
-------- -------- -------- -------- --------
Total distributions................ $ (0.624) $ (0.765) $ (4.045) $ (2.395) $ (2.000)
-------- -------- -------- -------- --------
Net asset value, end of year................ $ 16.290 $ 13.670 $ 12.020 $ 12.450 $ 12.650
========== ========== ========== ========== ==========
Total Return(3)............................. 23.87% 20.43% 33.86% 17.63% 28.98%
Ratios/Supplemental Data1:
Net assets, end of year (000 omitted).. $144,359 $ 50,878 $ 27,721 $ 25,815 $ 49,134
Ratio of net expenses to average net assets 1.05% 1.07% 1.08% 1.08% 1.07%
Ratio of net expenses after custodian fee
reduction to average net assets(2).. - 1.05% 1.05% 1.05% 1.05%
Ratio of net investment income to average
net assets ......................... 0.27% 0.49% 0.68% 0.90% 1.19%
Portfolio turnover rate................ 59% 36% 89% 45% 83%
- ----------------------------------------------------------------------------------------------------------------------------------
<FN>
1 For the years ended December 31, 1999, 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 1998 1997 1996 1995
- ----------------------------------------------------------------------------------------------------------------------------------
Net investment income per share........ $ 0.034 $ 0.052 $ 0.049 $ 0.061 $ 0.150
========== ========== ========== ========== ==========
Ratios (As a percentage of average net assets):
Expenses........................... 1.10% 1.28% 1.43% 1.12% 1.09%
========== ========== ========== ========== ==========
Expenses after custodian fee reduction2 - 1.26% 1.40% 1.09% 1.07%
========== ========== ========== ========== ==========
Net investment income.............. 0.22% 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.
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 Certain per share amounts are based on average shares outstanding.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
Wright Managed Equity Trust
- -------------------------------------------------------------------------------
Financial Highlights
Year Ended December 31,
---------------------------------------
Wright Major Blue Chip Equities Fund 1999(++)(3)
- -------------------------------------------------------------------------------
Institutional Shares
Net asset value, beginning of year.......... $ 10.000
--------
Income (loss) from investment operations:
Net investment income1 ................ $ 0.001
Net realized and unrealized gain....... 0.688
--------
Total income
from investment operations......... $ 0.689
--------
Less distributions:
Distributions from capital gains....... $ (0.267)
Distributions in excess of capital gains (0.312)
--------
Total distributions................ $ (0.579)
--------
Net asset value, end of year................ $ 10.110
==========
Total Return(2)............................. 7.26%
Ratios/Supplemental Data(1):
Net assets, end of year (000 omitted).. $ 2,037
Ratio of net expenses to average net assets 1.19%(+)
Ratio of net investment income to average
net assets ......................... 0.02%(+)
Portfolio turnover rate................ 59%
- -------------------------------------------------------------------------------
1 For the year ended December 31, 1999, the administrator reduced its fee. Had
such action not been undertaken, net investment loss per share and the ratios
would have been as follows:
1999(++)
- -------------------------------------------------------------------------------
Net investment loss per share.......... $ (0.001)
==========
Ratios (As a percentage of average net assets):
Expenses........................... 1.22%(+)
==========
Net investment loss................ (0.01%)(+)
==========
- -------------------------------------------------------------------------------
2 Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each period reported. Dividends and distributions, if any, are assumed to be
invested at the net asset value on the reinvestment date.
3 Certain per share amounts are based upon average shares outstanding.
+ Annualized.
++ For the period from July 14, 1999 (inception of offering Institutional
shares) to December 31, 1999.
See notes to financial statements
<PAGE>
WRIGHT MANAGED EQUITY TRUST
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Year Ended December 31,
-----------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
Wright International Blue Chip Equities Fund 1999(5) 1998 1997 1996 1995
- -----------------------------------------------------------------------------------------------------------------------------------
Standard Shares
-----------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......... $16.020 $16.020 $16.690 $14.770 $13.090
--------- --------- --------- --------- ---------
Income (loss) from investment operations:
Net investment income (loss) .......... $ (0.004) $ 0.078 $ 0.185 $ 0.128 $ 0.142
Net realized and unrealized gain....... 5.181 0.868 0.048+ 2.902 1.638
--------- --------- --------- --------- ---------
Total income
from investment operations......... $ 5.177 $ 0.946 $ 0.233 $ 3.030 $ 1.780
--------- --------- --------- --------- ---------
Less distributions:
Dividends from investment income....... $ - $ (0.070) $ (0.163) $ (0.100) $ (0.100)
Distributions from capital gains....... (2.297) (0.876) (0.740) (1.010) -
Return of capital...................... - - - - -
--------- --------- --------- --------- ---------
Total distributions................ $ (2.297) $ (0.946) $ (0.903) $ (1.110) $ (0.100)
--------- --------- --------- --------- ---------
Net asset value, end of year................ $18.900 $16.020 $16.020 $16.690 $14.770
========== ========== ========== ========== ==========
Total return(1)............................. 34.26% 6.14% 1.54% 20.73% 13.61%
Ratios/Supplemental Data
Net assets, end of year (000 omitted).. $147,610 $193,327 $212,698 $268,732 $237,176
Ratio of total expenses to average daily net assets 1.49%(3) 1.35%(3) 1.31%(3) 1.30% 1.29%
Ratio of net investment income to average daily
net assets.......................... 0.02% 0.42%(+) 0.82% 0.82% 0.99%
Portfolio turnover rate .............. 105%(4) 66%(4) 4%(2) 29%(2) 12%(2)
- ---------------------------------------------------------------------------------------------------------------------------------
<FN>
1 Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each period reported. Dividends and distributions, if any, are assumed to be
invested at the net asset value on the reinvestment date.
2 Portfolio turnover represents the rate of portfolio activity for the period
while the fund was making investments directly in securities.
3 Includes each fund's share of its corresponding Portfolio's allocated expenses.
4 Represents portfolio turnover rate of the fund's corresponding portfolio.
5 Certain per share amounts are based on average shares outstanding.
+ 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.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT MANAGED EQUITY TRUST
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Year Ended December 31,
--------------------------------
- ------------------------------------------------------------------------------------------------------------------------
Wright International Blue Chip Equities Fund 1999(4) 1998 1997(*)
- ------------------------------------------------------------------------------------------------------------------------
Institutional Shares
<S> <C> <C> <C>
Net asset value, beginning of year.......... $ 8.750 $ 9.130 $ 10.000
-------- -------- --------
Income (loss) from Investment Operations:
Net investment income ................. $ 0.014 $ 0.159 $ 0.006
Net realized and unrealized gain (loss) 2.693 0.487 (0.646)(+)
-------- -------- --------
Total income (loss)
from investment operations......... $ 2.707 $ 0.646 $ (0.640)
-------- -------- --------
Less distributions:
Dividends from investment income....... $ - $ (0.150) $ -
Distributions from capital gains....... (2.297) (0.876) (0.230)
Return of capital...................... - - -
-------- -------- --------
Total distribution................. $ (2.297) $ (1.026) $ (0.230)
-------- -------- --------
Net asset value, end of year................ $ 9.160 $ 8.750 $ 9.130
========= ========= =========
Total return(1)............................. 34.49% 7.54% (6.37%)
Ratios/Supplemental Data:
Net assets, end of year (000 omitted).. $ 24,254 $ 18,511 $ 45,094
Ratio of total expenses to average daily
net assets........................... 1.28%(2) 1.12%(2) 1.16%(2)(++)
Ratio of net investment income to average daily
net assets........................... 0.16% 0.73% 0.15%(++)
Portfolio turnover rate................ 105%(3) 66%(3) 4%(5)
- ---------------------------------------------------------------------------------------------------------------------------
<FN>
1 Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each period reported. Dividends and distributions, if any, are assumed to be
invested at the net asset value on the reinvestment date.
2 Includes each fund's share of its corresponding portfolio's allocated expenses.
3 Represents portfolio turnover rate of the fund's corresponding portfolio.
4 Certain per share amounts are based on average shares outstanding.
5 Portfolio turnover represents the rate of portfolio activity for the period
while the fund was making investments directly in securities.
+ Per share amount is not in accordance with the net realized and unrealized
gain (loss) for the period because of the timing of sales of fund shares and
the amounts per share realized and unrealized gains and losses at such times.
++ Annualized.
* For the period from July 7, 1997 (inception of offering institutional shares)
to December 31, 1997.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT MANAGED EQUITY TRUST
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
(1) SIGNIFICANT ACCOUNTING POLICIES
The Wright Managed Equity Trust (the Trust), issuer of Wright Selected Blue
Chip Equities Fund (WBC) series, Wright 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
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 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 (98.6% and 99.6% at
December 31, 1999 for WBC and WIBC, respectively). The performance of each fund
is directly affected by the performance of its corresponding Portfolio. The
financial statements of each Portfolio, including the portfolio of investments,
are included elsewhere in this report and should be read in conjunction with
each fund's financial statements. The following is a summary of significant
accounting policies consistently followed by the Trust in the preparation of its
financial statements. The policies are in conformity with generally accepted
accounting principles.
A. Investment Valuations - For WMBC securities listed on securities exchanges
or in the NASDAQ National Market are valued at closing sale prices, if
those prices are deemed to be representative of market values at the close
of business. Unlisted or listed securities for which closing sale prices
are not available are valued at the mean between the latest bid and asked
prices. Short-term obligations maturing in sixty days or less are valued at
amortized cost, which approximates market value. Securities for which
market quotations are unavailable or deemed not to be representative of
market values at the close of business are appraised at their fair value as
determined in good faith by or at the direction of the Trustees. Valuation
of securities by WBC 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 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 - Certain of the funds followed 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, was credited or charged to undistributed net investment
income. As a result, undistributed net investment income per share was
unaffected by sales or reacquisitions of fund shares. As of January 1,
1999, the Trust ceased recording equalization.
<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.
During the year ended December 31, 1999, the following amounts were
reclassified due to differences between book and tax accounting created
primarily by the deferral of certain losses for tax purposes and character
reclassifications between net investment income and net realized capital
gains.
Accumulated Undistrib-
uted Net Realized Gain
(Loss) on Investment Undistributed
Paid-In and Foreign Currency Net Investment
Capital Transactions Income (Loss)
- -------------------------------------------------------------------------------
WBC $16,990,852 $(16,930,288) $(60,564)
WMBC 1,617,607 (1,657,771) 40,164
WIBC 11,559,218 (12,654,551) 1,095,333
Net investment income, net realized gains (losses) and net assets were not
affected by these reclassifications.
H. Other - Investment transactions are accounted for on the date the
investments are purchased or sold.
I. Use of Estimates - The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported
amounts of revenue and expense during the reporting period. Actual results
could differ from those estimates.
J. Multiple Classes of Shares of Beneficial Interest - Each fund is authorized
to offer a standard share class and an institutional share class. The share
classes differ in their respective distribution and service fees. All
shareholders bear the common expenses of the fund pro rata based on the
average daily net assets of each class, without distinction between share
classes. Dividends are declared separately for each class. Each class has
equal rights as to voting, redemption, dividends, and liquidation. At
December 31, 1999, only WMBC and WIBC had an institutional share class.
(2) INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The Trust has engaged Wright Investors' Service, Inc. (Wright) to act as
investment adviser to the funds pursuant to the respective Investment Advisory
Contracts. Wright furnishes each fund with investment management, investment
advisory, and other services. For its services, Wright is compensated based upon
a percentage of average daily net assets which rate is adjusted as average daily
net assets exceed certain levels. For the year ended December 31, 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. The Trust also
has engaged Eaton Vance Management (Eaton Vance) to act as administrator of the
Trust. Under the Administration Agreement, Eaton Vance is responsible for
managing the business affairs of the Trust and is compensated based upon a
percentage of average daily net assets which rate is reduced as average daily
net assets exceed certain levels. For the year ended December 31, 1999, the
effective annual rate was 0.02% for WBC, 0.20% for WMBC, and 0.02% for WIBC. To
enhance the net income of the fund, the administrator waived its fees by $113
for WMBC Institutional shares. 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 employees of Eaton Vance or Wright, Trustees and officers
receive remuneration for their services to the Trust out of the fees paid to
Eaton Vance and Wright.
(3) DISTRIBUTION EXPENSES
The Trustees have adopted a Distribution Plan (the Plan) pursuant to Rule
12b-1 of the Investment Company Act of 1940. The Plan provides that each of the
funds will pay Wright Investors' Service Distributors, Inc. (Principal
Underwriter), a wholly-owned subsidiary of Winthrop, an annual rate of 0.25% of
each fund's average daily net assets attributable to Standard shares for
activities primarily intended to result in the sale of each fund's Standard
shares. To enhance the net income of WBC and WMBC, the Principal Underwriter
made a reduction of its fee by $80,386 and $48,817, respectively. In addition,
the Trustees have adopted a service plan (the Service Plan) which allows the
funds to reimburse the Principal Underwriter for payments to intermediaries for
providing account administration and account maintenance services to their
customers who are beneficial owners of shares. The amount of service fee payable
under the Service Plan with respect to each class of shares may not exceed 0.25%
annually of the average daily net assets attributable to the respective classes.
For the year ended December 31, 1999, the funds did not accrue or pay any
service fees.
<PAGE>
(4) SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number
of full and fractional shares of beneficial interest (without par value).
Transactions in fund shares were as follows:
<TABLE>
<CAPTION>
Year Ended Year Ended
December 31, 1999 December 31, 1998
---------------------------------------------------------
Shares Amount Shares Amount
- ---------------------------------------------------------------------------------------------------------------------------------
Wright Selected Blue Chip Equities Fund--
<S> <C> <C> <C> <C>
Sold................................................... 1,547,222 $ 26,874,487 2,109,096 $ 40,389,405
Issued to shareholders in payment of distributions
declared.............................................. 1,009,272 14,480,550 877,643 14,839,357
Reacquired............................................. (10,158,221) (172,112,561) (3,967,641) (71,617,605)
----------- -------------- ----------- --------------
Net decrease......................................... (7,601,727) $(130,757,524) (980,902) $ (16,388,843)
============= ================ ============= =================
Wright Major Blue Chip Equities Fund -- Standard Shares
Sold................................................... 8,075,051 $ 119,260,766 2,262,400 $ 27,942,197
Issued to shareholders in payment of distributions
declared.............................................. 297,328 4,636,894 171,868 2,268,398
Reacquired............................................. (3,232,621) (49,803,031) (1,017,149) (13,267,151)
----------- -------------- ----------- --------------
Net increase......................................... 5,139,758 $ 74,094,629 1,417,119 $ 16,943,444
============= ================= ============= =================
Wright Major Blue Chip Equities Fund -- Institutional Shares
Sold.................................................. 199,068 $ 1,950,361 - $ -
Issued to shareholders in payment of distributions
declared.............................................. 11,013 106,606 - -
Reacquired............................................. (8,668) (88,000) - -
----------- -------------- ----------- --------------
Net increase......................................... 201,413 $ 1,968,967 - $ -
============= ================= ============= =================
Wright International Blue Chip Equities Fund-- Standard Shares:
Sold................................................... 5,014,606 $ 80,196,748 6,595,651 $ 110,930,477
Issued to shareholders in payment of distributions
declared.............................................. 875,950 14,725,621 566,574 8,776,474
Reacquired............................................. (10,146,203) (162,025,858) (8,370,704) (137,958,821)
----------- -------------- ----------- --------------
Net decrease......................................... (4,255,647) $ (67,103,489) (1,208,479) $ (18,251,870)
============= ================= ============= =================
Wright International Blue Chip Equities Fund-- Institutional Shares:
Issued to shareholders in payment of distributions
declared.............................................. 588,052 $ 4,888,914 249,025 $ 2,139,120
Reacquired............................................. (55,919) (465,000) (3,070,822) (27,056,001)
----------- -------------- ----------- --------------
Net increase (decrease)................................ 532,133 $ 4,423,914 (2,821,797) $ (24,916,881)
============= ================= ============= =================
</TABLE>
<PAGE>
(5) INVESTMENT TRANSACTIONS
Purchases and sales of investments, other than U.S. Government securities
and short-term obligations were as follows:
Year Ended
December 31, 1999
-------------------------
Wright Major Blue Chip
Equities Fund
- -------------------------------------------------------------------------------
Purchases....................... $ 143,230,433
================
Sales........................... $ 72,473,445
================
- -------------------------------------------------------------------------------
Increases and decreases in each fund's investment in its corresponding
Portfolio for the year ended December 31, 1999 were as follows:
WBC WIBC
- -------------------------------------------------------------------------------
Increases................... $27,267,074 $ 80,270,534
Decreases................... (176,593,426) (166,829,500)
- -------------------------------------------------------------------------------
(6) FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES
The cost and unrealized appreciation (depreciation) of the investment
securities owned at December 31, 1999, as computed on a federal income tax
basis, are as follows:
Wright Major
Blue Chip
Equities Fund
- -------------------------------------------------------------------------------
Aggregate cost.......................... $ 117,485,197
=============
Gross unrealized appreciation........... $ 32,348,555
Gross unrealized depreciation........... (4,273,553)
-------------
Net unrealized appreciation............. $ 28,075,002
=============
- -------------------------------------------------------------------------------
(7) LINE OF CREDIT
The funds participate with other funds managed by Wright in a committed $20
million unsecured line of credit agreement with a bank. The funds may
temporarily borrow from the line of credit to satisfy redemption requests or
settle investment transactions. Interest is charged to each fund based on its
borrowings at an amount above the federal funds rate. In addition, a fee
computed at an annual rate of 0.10% on the average daily unused portion of the
$20 million line of credit, is allocated among the participating funds at the
end of each quarter. The funds did not have significant borrowings or allocated
fees during the year ended December 31, 1999.
<PAGE>
WRIGHT MANAGED EQUITY TRUST
- -------------------------------------------------------------------------------
INDEPENDENT AUDITORS' REPORT
To the Trustees and Shareholders of
The Wright Managed Equity Trust:
We have audited the accompanying statements of assets and liabilities,
including the portfolio of investments of Wright Major Blue Chip Equities
Fund, of The Wright Managed Equity Trust (the Trust) (comprising,
respectively, of Wright Selected Blue Chip Equities Fund, Wright Major Blue
Chip Equities Fund, and Wright International Blue Chip Equities Fund) as of
December 31, 1999, the related statements of operations for the year then
ended, the statements of changes in net assets for the years ended December
31, 1999 and 1998, and the financial highlights for each of the years in
the five-year period ended December 31, 1999. These financial statements
and financial highlights are the responsibility of the Trust's management.
Our responsibility is to express an opinion on these financial statements
and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of the
securities owned as of December 31, 1999, by correspondence with the
custodian and brokers; where replies were not received from brokers, we
performed other auditing procedures. An audit also includes assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of each of the
aforementioned Funds of The Wright Managed Equity Trust as of December 31,
1999, the results of their operations, the changes in their net assets, and
their financial highlights for the respective stated periods in conformity
with generally accepted accounting principles.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
February 4, 2000
<PAGE>
WRIGHT MANAGED INCOME TRUST
- -------------------------------------------------------------------------------
WRIGHT U.S. TREASURY MONEY MARKET FUND (WTMM)(+)
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1999
- -------------------------------------------------------------------------------
ASSETS:
Total investments, at amortized cost
(Note 1A).............................. $62,113,430
Receivable for fund shares sold......... 1,153,383
------------
Total assets.......................... $63,266,813
------------
LIABILITIES:
Cash overdraft.......................... $ 679,195
Distributions payable................... 39,518
Accrued management fees................. 4,665
Accrued expenses and other liabilities.. 16,260
------------
Total liabilities..................... $ 739,638
------------
NET ASSETS (consisting of paid-in capital) $62,527,175
==============
SHARES OF BENEFICIAL INTEREST OUTSTANDING 62,527,175
==============
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 December 31, 1999 is
the same as the market value.
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1999
- -------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1B):
Interest income........................ $ 3,701,852
------------
Expenses -
Investment adviser fee (Note 3)........ $ 278,468
Administrator fee (Note 3)............. 55,741
Compensation of Trustees not employees of
the investment adviser or administrator 2,244
Custodian fee (Note 1C)................ 45,159
Transfer and dividend disbursing agent fees 52,494
Printing............................... 6,297
Audit services......................... 32,440
Legal services......................... 6,497
Registration costs..................... 22,002
Miscellaneous.......................... 3,172
------------
Total expenses........................ $ 504,514
------------
Deduct -
Reduction of investment adviser fee
(Note 3).............................. $ (146,004)
------------
Net expenses.......................... $ 358,510
------------
Net investment income............... $ 3,343,342
==============
See notes to financial statements
<PAGE>
WRIGHT MANAGED INCOME TRUST
- -------------------------------------------------------------------------------
WRIGHT U.S. TREASURY MONEY MARKET FUND (WTMM)(+)
Year Ended
December 31
------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS 1999 1998
- -------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
Net investment income................ $ 3,343,342 $ 4,347,143
------------ ------------
Distributions to shareholders (Note 2) -
From net investment income......... $ (3,343,342) $ (4,347,143)
------------ ------------
Fund share transactions (Note 5)(+)-
Proceeds from shares sold........... $203,310,392 $269,270,734
Reinvestment of dividends........... 2,487,831 2,616,748
Cost of shares reacquired........... (234,594,040) (267,623,266)
------------ ------------
Net increase (decrease) in net assets
from fund share transactions......... $(28,795,817) $ 4,264,216
------------ ------------
Net increase (decrease) in ne
assets........................... $(28,795,817) $ 4,264,216
NET ASSETS:
At beginning of year.................. 91,322,992 87,058,776
------------ ------------
At end of year........................ $ 62,527,175 $ 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
<PAGE>
WRIGHT MANAGED INCOME TRUST
- -------------------------------------------------------------------------------
WRIGHT U.S. GOVERNMENT NEAR TERM FUND (WNTB)
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1999
- -------------------------------------------------------------------------------
ASSETS:
Investments -
Investments in portfolio, at value
(identified cost of $53,673,927)(Note 1A) $52,963,020
Receivable for fund shares sold......... 3,477
------------
Total assets.......................... $52,966,497
------------
LIABILITIES:
Payable for fund shares reacquired...... $ 11,219
Distributions payable................... 114,036
Distribution fee payable................ 9,254
Accrued expenses and other liabilities.. 7,113
------------
Total liabilities..................... $ 141,622
------------
NET ASSETS................................ $52,824,875
============
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................... $64,386,007
Accumulated net realized loss on investments
(computed on the basis of identified cost) (10,863,671)
Unrealized depreciation of investments
(computed on the basis of identified cost) (710,907)
Undistributed net investment income..... 13,446
------------
Net assets applicable to outstanding
shares................................. $ 52,824,875
==============
SHARES OF BENEFICIAL INTEREST OUTSTANDING 5,319,384
==============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST................. $9.93
==============
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1999
- -------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1B):
Interest income allocated from portfolio $ 4,583,781
Expenses allocated from portfolio...... (424,388)
------------
Investment income..................... $ 4,159,393
------------
Expenses -
Administrator fee (Note 3)............. $ 14,928
Compensation of Trustees not employees of
the investment adviser or administrator 2,627
Custodian fee (Note 1C)................ 16,251
Distribution expenses (Note 4)......... 185,829
Transfer and dividend disbursing agent fees 33,219
Printing............................... 7,242
Audit services......................... 21,016
Legal services......................... 5,252
Registration costs..................... 15,919
Miscellaneous.......................... 2,100
------------
Total expenses........................ $ 304,383
------------
Deduct -
Reduction of distribution expenses by
principal underwriter (Note 4)........ $ (59,492)
------------
Net expenses.......................... $ 244,891
------------
Net investment income............... $ 3,914,502
------------
REALIZED AND UNREALIZED LOSS ON INVESTMENTS:
Net realized loss on investment transactions
from portfolio (identified cost basis). $ (341,916)
Net change in unrealized depreciation
of investments......................... (2,270,040)
------------
Net realized and unrealized loss on
investments........................... $(2,611,956)
------------
Net increase in net assets from operations $ 1,302,546
==============
See notes to financial statements
<PAGE>
WRIGHT MANAGED INCOME TRUST
- -------------------------------------------------------------------------------
WRIGHT U.S. GOVERNMENT NEAR TERM FUND (WNTB)
<TABLE>
<CAPTION>
Year Ended
December 31
-----------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS 1999 1998
- -------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From operations -
<S> <C> <C>
Net investment income...................................................... $ 3,914,502 $ 5,381,356
Net realized loss on investment transactions............................... (341,916) (45,687)
Change in unrealized appreciation (depreciation) of investments............ (2,270,040) 580,238
------------ ------------
Net increase in net assets resulting from operations..................... $ 1,302,546 $ 5,915,907
------------ ------------
Distributions to shareholders (Note 2) -
From net investment income................................................. $ (3,898,323) $ (5,565,401)
------------ ------------
Net decrease in net assets from fund share transactions (Note 5)............. $(36,500,892) $(10,993,758)
------------ ------------
Net decrease in net assets............................................... $(39,096,669) $(10,643,252)
NET ASSETS:
At beginning of year......................................................... 91,921,544 102,564,796
------------ ------------
At end of year............................................................... $ 52,824,875 $ 91,921,544
============= =============
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME INCLUDED
IN NET ASSETS AT END OF PERIOD............................................... $ 13,446 $ (2,733)
============= =============
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT MANAGED INCOME TRUST
- -------------------------------------------------------------------------------
WRIGHT U.S. TREASURY FUND (WUSTB)
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1999
- -------------------------------------------------------------------------------
ASSETS:
Investments -
Investments in portfolio, at value
(identified cost of $32,115,867) (Note 1A) $31,249,029
Receivable for fund shares sold......... 1,119
------------
Total assets.......................... $31,250,148
------------
LIABILITIES:
Distributions payable................... $ 48,632
Distribution fee payable................ 1,482
Accrued expenses and other liabilities.. 7,538
------------
Total liabilities..................... $ 57,652
------------
NET ASSETS................................ $31,192,496
============
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................... $32,050,118
Accumulated net realized gain on investments
(computed on the basis of identified cost) 9,216
Unrealized depreciation of investments
(computed on the basis of identified cost) (866,838)
------------
Net assets applicable to outstanding shares $ 31,192,496
==============
SHARES OF BENEFICIAL INTEREST OUTSTANDING 2,420,039
==============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST................. $12.89
==============
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1999
- -------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1B):
Interest income allocated from portfolio $ 3,211,884
Expenses allocated from portfolio...... (303,825)
------------
Investment income..................... $ 2,908,059
------------
Expenses -
Administrator fee (Note 3)............. $ 10,513
Compensation of Trustees not employees of
the investment adviser or administrator 3,403
Custodian fee (Note 1C)................ 16,940
Distribution expenses (Note 4)......... 130,579
Transfer and dividend disbursing agent fees 18,754
Printing............................... 6,971
Audit services......................... 2,900
Legal services......................... 26,918
Registration costs..................... 16,864
Miscellaneous.......................... 2,783
------------
Total expenses........................ $ 236,625
------------
Deduct -
Reduction of distribution expenses by
principal underwriter (Note 4)......... $ (69,865)
------------
Net expenses.......................... $ 166,760
------------
Net investment income............... $ 2,741,299
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investment transactions
from portfolio (identified cost basis). $ 856,694
Net change in unrealized depreciation
of investments......................... (5,938,057)
------------
Net realized and unrealized loss on
investments........................... $(5,081,363)
------------
Net decrease in net assets from
operations........................... $(2,340,064)
==============
See notes to financial statements
<PAGE>
WRIGHT MANAGED INCOME TRUST
- -------------------------------------------------------------------------------
WRIGHT U.S. TREASURY FUND (WUSTB)
<TABLE>
<CAPTION>
Year Ended
December 31
------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS 1999 1998
- ----------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From operations -
<S> <C> <C>
Net investment income...................................................... $ 2,741,299 $ 3,662,667
Net realized gain on investment transactions............................... 856,694 984,728
Change in unrealized appreciation (depreciation) of investments............ (5,938,057) 2,386,702
------------ ------------
Net increase (decrease) in net assets resulting from operations.......... $ (2,340,064) $ 7,034,097
------------ ------------
Distributions to shareholders (Note 2) -
From net investment income................................................. $ (2,727,598) $ (3,755,230)
From net realized gain..................................................... (732,979) (751,891)
------------ ------------
Total distributions...................................................... $ (3,460,577) $ (4,507,121)
------------ ------------
Net decrease in net assets from fund share transactions (Note 5)............. $(30,263,221) $ (9,428,675)
------------ ------------
Net decrease in net assets............................................... $(36,063,862) $ (6,901,699)
NET ASSETS:
At beginning of year......................................................... 67,256,358 74,158,057
------------ ------------
At end of year............................................................... $ 31,192,496 $ 67,256,358
============= =============
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT MANAGED INCOME TRUST
- -------------------------------------------------------------------------------
WRIGHT TOTAL RETURN BOND FUND (WTRB)(+)
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1999
- -------------------------------------------------------------------------------
ASSETS:
Investments -
Identified cost....................... $89,765,688
Unrealized depreciation............... (4,882,545)
------------
Total investments, at value (Note 1A)... $ 84,883,143
Cash.................................... 1,202,448
Receivable for fund shares sold......... 8,858
Interest receivable..................... 1,436,551
Receivable from investment adviser...... 11,175
------------
Total assets.......................... $87,542,175
------------
LIABILITIES:
Payable for fund shares reacquired...... $ 76,665
Distributions payable................... 114,541
Accrued expenses and other liabilities.. 14,764
------------
Total liabilities..................... $ 205,970
------------
NET ASSETS................................ $87,336,205
============
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................... $92,296,301
Accumulated undistributed net realized loss
on investments (computed on the basis of
identified cost)....................... (62,235)
Unrealized depreciation of investments
(computed on the basis of identified cost) (4,882,545)
Distributions in excess of net investment
income................................ (15,316)
------------
Net assets applicable to outstanding
shares................................ $87,336,205
==============
SHARES OF BENEFICIAL INTEREST OUTSTANDING 7,218,060
==============
NET ASSET VALUE, OFFERING PRICE, AND
REDEMPTION PRICE PER SHARE OF
BENEFICIAL INTEREST.................... $12.10
==============
+ The Wright Total Return Bond Fund does not invest in a corresponding master
portfolio.
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1999
- -------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1B):
Interest income........................ $ 6,610,769
------------
Investment income..................... $ 6,610,769
------------
Expenses -
Investment adviser fee (Note 3)........ $ 429,396
Administrator fee (Note 3)............. 101,757
Compensation of Trustees not employees of
the investment adviser or administrator 2,739
Custodian fee (Note 1C)................ 45,136
Distribution expenses (Note 4)......... 265,577
Transfer and dividend disbursing agent fees 44,286
Printing............................... 6,216
Audit services......................... 35,674
Legal services......................... 2,325
Registration costs..................... 24,685
Miscellaneous.......................... 4,410
------------
Total expenses........................ $ 962,201
------------
Deduct -
Reduction of investment adviser fee
(Note 3).............................. $ (11,175)
------------
Net expenses.......................... $ 951,026
------------
Net investment income............... $ 5,659,743
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investment transactions
(identified cost basis)................ $ 83,209
Net change in unrealized depreciation
of investments......................... (10,280,970)
------------
Net realized and unrealized loss on
investments........................... $(10,197,761)
------------
Net decrease in net assets from
operations........................... $ (4,538,018)
==============
See notes to financial statements
<PAGE>
WRIGHT MANAGED INCOME TRUST
- -------------------------------------------------------------------------------
WRIGHT TOTAL RETURN BOND FUND (WTRB)
<TABLE>
<CAPTION>
Year Ended
December 31
------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS 1999 1998
- ---------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From operations -
<S> <C> <C>
Net investment income...................................................... $ 5,659,743 $ 4,885,375
Net realized gain on investment transactions............................... 83,209 839,997
Change in unrealized appreciation (depreciation) of investments............ (10,280,970) 2,803,169
------------ ------------
Net increase (decrease) in net assets resulting from operations.......... $ (4,538,018) $ 8,528,541
------------ ------------
Distributions to shareholders (Note 2) -
From net investment income -............................................... $ (5,659,743) $ (4,935,698)
In excess of net investment income......................................... (3,634) -
From net realized gain..................................................... (83,209) (1,048,957)
In excess of realized gains................................................ (63,002) (6,717)
------------ ------------
Total distributions...................................................... $ (5,809,588) $ (5,991,372)
------------ ------------
Net increase (decrease) in net assets from fund share transactions (Note 5).. $(18,253,539) $ 33,396,518
------------ ------------
Net increase (decrease) in net assets.................................... $(28,601,145) $ 35,933,687
NET ASSETS:
At beginning of year......................................................... 115,937,350 80,003,663
------------ ------------
At end of year............................................................... $ 87,336,205 $115,937,350
============= =============
DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME
INCLUDED IN NET ASSETS AT END OF PERIOD...................................... $ (15,316) $ (10,334)
============= =============
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT MANAGED INCOME TRUST
- -------------------------------------------------------------------------------
WRIGHT CURRENT INCOME FUND (WCIF)
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1999
- -------------------------------------------------------------------------------
ASSETS:
Investments -
Investment in portfolio, at value (identified
cost of $103,478,335) (Note 1A)..... $99,987,086
------------
Receivable for fund shares sold......... 24,630
------------
Total assets.......................... $100,011,716
------------
LIABILITIES:
Distributions payable................... $ 161,728
Payable for fund shares reacquired...... 3,206
Distribution fee payable................ 9,096
Accrued expenses and other liabilities.. 11,258
------------
Total liabilities..................... $ 185,288
------------
NET ASSETS................................ $99,826,428
==============
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................... $104,788,910
Accumulated undistributed net realized loss
on investments (computed on the basis of
identified cost)....................... (1,163,114)
Unrealized depreciation of investments
(computed on the basis of identified cost) (3,491,249)
Distributions in excess of net investment
income.................................. (308,119)
------------
Net assets applicable to outstanding
shares................................. $ 99,826,428
==============
Computation of net asset value, offering and redemption price per share:
Standard Shares:
Net assets............................. $ 76,452,269
==============
Shares of beneficial interest outstanding 7,580,741
==============
Net asset value, offering price, and
redemption price per share of
beneficial interest................... $10.09
==============
Institutional Shares:
Net assets............................. $ 23,374,159
==============
SHARES OF BENEFICIAL INTEREST OUTSTANDING 2,435,191
==============
NET ASSET VALUE, OFFERING PRICE, AND
REDEMPTION PRICE PER SHARE OF
BENEFICIAL INTEREST................... $9.60
==============
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1999
- -------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1B):
Interest income allocated from portfolio $ 7,386,581
Expenses allocated from portfolio...... (627,911)
------------
Investment income..................... $ 6,758,670
------------
Expenses -
Administrator fee (Note 3)............. $ 20,783
Compensation of Trustees not employees of
the investment adviser or administrator 2,559
Custodian fee -
Standard shares (Note 1C)............. 21,903
Institutional shares (Note 1C)........ 13,062
Distribution expenses -
Standard shares (Note 4).............. 209,823
Transfer and dividend disbursing agent fees
Standard shares....................... 23,862
Institutional shares.................. 5,446
Printing............................... 4,659
Audit services......................... 5,890
Legal services......................... 2,304
Registration costs -
Standard shares....................... 18,229
Institutional shares.................. 7,528
Miscellaneous.......................... 6,215
------------
Total expenses........................ $ 342,263
------------
Deduct -
Reduction of distribution expenses
- Standard shares
by principal underwriter (Note 4)... $ (48,295)
------------
Net expenses.......................... $ 293,968
------------
Net investment income............... $ 6,464,702
------------
REALIZED AND UNREALIZED LOSS ON INVESTMENTS:
Net realized loss on investment transactions
(identified cost basis)................ $ (199,779)
Change in unrealized depreciation
of investments......................... (5,633,814)
------------
Net realized and unrealized loss on
investments........................... (5,833,593)
------------
Net increase in net assets from
operations........................... $ 631,109
==============
See notes to financial statements
<PAGE>
WRIGHT MANAGED INCOME TRUST
- -------------------------------------------------------------------------------
WRIGHT CURRENT INCOME FUND (WCIF)
<TABLE>
<CAPTION>
Year Ended
December 31
--------------------------------
STATEMENTS OF CHANGES IN NET ASSETS 1999 1998
- ---------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From operations -
<S> <C> <C>
Net investment income...................................................... $ 6,464,702 $ 6,436,356
Net realized loss on investment transactions............................... (199,779) (142,545)
Change in unrealized appreciation (depreciation) of investments............ (5,633,814) 406,744
------------ ------------
Net increase in net assets resulting from operations..................... $ 631,109 $ 6,700,555
------------ ------------
Distributions to shareholders (Note 2) -
From net investment income -
Standard shares.......................................................... $ (5,019,888) $ (5,063,570)
Institutional shares..................................................... (1,431,824) (1,363,651)
In excess of net investment income - Standard shares....................... - (4,167)
------------ ------------
Total distributions...................................................... $ (6,451,712) $ (6,431,388)
------------ ------------
Net increase (decrease) in net assets
from Fund share transactions (Note 5) -
Standard shares.......................................................... $ (9,277,546) $ 13,841,664
Institutional shares..................................................... 1,431,824 1,363,651
------------ ------------
Net increase (decrease) in net assets from fund share transactions....... $ (7,845,722) $ 15,205,315
------------ ------------
Net increase (decrease) in net assets.................................... $(13,666,325) $ 15,474,482
NET ASSETS:
At beginning of year......................................................... 113,492,753 98,018,271
------------ ------------
At end of year............................................................... $ 99,826,428 $113,492,753
============= =============
DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME INCLUDED
IN NET ASSETS AT END OF PERIOD............................................... $ (308,119) $ (230,835)
============= =============
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT MANAGED INCOME TRUST
- ------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Year Ended December 31,
----------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
WRIGHT U.S. TREASURY MONEY MARKET FUND 1999 1998 1997 1996 1995
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year............. $1.00 $1.00 $1.00 $1.00 $1.00
Income from investment operations:
Net investment income(1) ................... 0.0420 0.0460 0.04739 0.04745 0.05212
Less distributions:
Dividends from net Investment income........ (0.0420) (0.0460) (0.04739) (0.04745) (0.05212)
Distributions from capital gains............ - - - - -
Return of capital........................... - - - - -
-------- -------- -------- -------- --------
Total distributions......................... (0.0420) (0.0460) (0.04739) (0.04745) (0.05212)
-------- -------- -------- -------- --------
Net asset value, end of year................... $1.00 $1.00 $1.00 $1.00 $1.00
========= ========= ========= ========= =========
Total return(2)................................ 4.29% 4.73% 4.84% 4.85% 5.34%
Ratios/Supplemental Data(1)
Net assets, end of year (000 omitted)....... $62,527 $91,323 $87,059 $95,184 $45,889
Ratio of net expenses to average net assets 0.45% 0.45% 0.45% 0.45%(3) 0.46%(3)
Ratio of net investment income to average net assets 4.19% 4.61% 4.74% 4.73% 5.22%
- --------------------------------------------------------------------------------------------------------------------------------
<FN>
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................ $0.0402 $0.0444 $0.04599 $0.04524 $0.05120
========== ========== ========== ========== ==========
Ratios (as a percentage of average daily net assets):
Expenses.................................... 0.63% 0.61% 0.59% 0.67% 0.65%
========== ========== ========== ========== ==========
Net investment income ...................... 4.01% 4.45% 4.60% 4.51% 5.03%
========== ========== ========== ========== ==========
- --------------------------------------------------------------------------------------------------------------------------------
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. 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%
- --------------------------------------------------------------------------------------------------------------------------------
</FN>
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT MANAGED INCOME TRUST
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Year Ended December 31,
----------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
WRIGHT U.S. GOVERNMENT NEAR TERM FUND 1999 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......... $ 10.270 $ 10.240 $ 10.240 $ 10.450 $ 9.920
-------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment income(1)................. $ 0.534 $ 0.549 $ 0.599 $ 0.606 $ 0.631
Net realized and unrealized gain (loss).. (0.343) 0.048(+) (0.010) (0.212) 0.524
-------- -------- -------- -------- --------
Total income from
investment operations............... $ 0.191 $ 0.597 $ 0.589 $ 0.394 $ 1.155
-------- -------- -------- -------- --------
Less distributions:
Dividends from investment income....... $ (0.531) $ (0.567) $ (0.589) $ (0.604) $ (0.625)
Distributions from capital gains....... - - - - -
Return of capital...................... - - - - -
-------- -------- -------- -------- --------
Total distributions.................... $ (0.531) $ (0.567) $ (0.589) $ (0.604) $ (0.625)
-------- -------- -------- -------- --------
Net asset value, end of year................ $ 9.930 $ 10.270 $ 10.240 $ 10.240 $ 10.450
========= ========= ========= ========= ========
Total return(2)............................. 1.91% 5.98% 5.93% 3.91% 11.93%
Ratios/Supplemental Data(1)
Net assets, end of year (000 omitted).... $ 52,825 $ 91,922 $ 102,565 $ 130,325 $143,600
Ratio of net expenses to average net assets 0.91%(4) 0.88%(4) 0.87%(4) 0.80% 0.80%
Ratio of expenses after custodian fee
reduction to average net assets(5).... 0.90%(4) 0.87%(4) - - -
Ratio of net investment income to average
net assets............................ 5.27% 5.38% 5.82% 5.90% 6.20%
Portfolio turnover rate ................ 0%(6) 10%(6) 4%(3) 28%(3) 21%(3)
- ---------------------------------------------------------------------------------------------------------------------------------
<FN>
1 For certain periods presented, 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 1998 1997
------------------------------------------------
Net investment income per share........ $ 0.526 $ 0.546 $ 0.597
========= ========= =========
Ratios (As a percentage of average net assets):
Expenses........................... 0.99%(4) 0.91%(4) 0.89%(4)
========= ========= =========
Expenses after custodian fee reduction(5) 0.98%(4) 0.90%(4) -
========= ========= =========
Net investment income.............. 5.19% 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.
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
and the portfolio 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.
6 Represents portfolio turnover rate of the fund's corresponding portfolio.
+ Per share amount is not in accordance with the net realized and unrealized
gain (loss) for the period because of the timing of sales of Fund shares and
the amounts per share of realized and unrealized gains and losses at such
times.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT MANAGED INCOME TRUST
- ------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Year Ended December 31,
-----------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
WRIGHT U.S. TREASURY FUND 1999 1998 1997 1996(3) 1995
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......... $ 14.400 $ 13.950 $ 13.580 $ 14.710 $ 12.250
-------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment income(1)................. $ 0.722 $ 0.724 $ 0.721 $ 0.769 $ 0.880
Net realized and unrealized gain (loss).. (1.282) 0.632 0.462 (0.973) 2.458
-------- -------- -------- -------- --------
Total income (loss)
from investment operations............. $ (0.560) $ 1.356 $ 1.183 $ (0.204) $ 3.338
-------- -------- -------- -------- --------
Less distributions:
Dividends from investment income......... $ (0.716) $ (0.741) $ (0.703) $ (0.756) $ (0.878)
Distributions from capital gains......... (0.234) (0.165) (0.110) (0.170) -
Return of capital........................ - - - - -
-------- -------- -------- -------- --------
Total distributions.................... $ (0.950) $ (0.906) $ (0.813) $ (0.926) $ (0.878)
-------- -------- -------- -------- --------
Net asset value, end of year................ $ 12.890 $ 14.400 $ 13.950 $ 13.580 $ 14.710
========= ========= ========= ========= =========
Total return(2)............................. (3.97%) 9.95% 9.09% (1.23%) 28.18%
Ratios/Supplemental Data(1):
Net assets, end of year (000 omitted).... $ 31,192 $ 67,256 $ 74,158 $ 54,978 $ 15,156
Ratio of total expenses to average net assets 0.92%(5) 0.94%(5) 1.01%(5) 0.90% 0.90%
Ratio of net expenses after custodian fee
reduction to average net assets(6).. 0.90%(5) 0.90%(5) 0.87%(5) - -
Ratio of net investment income
to average net assets............... 5.26% 5.09% 5.34% 5.50% 6.60%
Portfolio turnover rate ................ 0%(7) 7%(7) 1%(4) 65%(4) 8%(4)
- ----------------------------------------------------------------------------------------------------------------------------------
<FN>
1 For each of the periods presented, 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 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income per share............. $ 0.703 $ 0.721 $ 0.720 $ 0.769 $ 0.827
========= ========= ========= ========= =========
Ratios (as a percentage of average net assets):
Expenses .............................. 1.06%(5) 0.96%(5) 1.02%(5) 0.90% 1.20%
========= ========= ========= ========= =========
Expenses after custodian fee reduction(6) 1.04%(5) 0.92%(5) 0.88%(5) - -
========= ========= ========= ========= =========
Net investment income.................... 5.12% 5.07% 5.33% 5.50% 6.20%
========= ========= ========= ========= =========
- ---------------------------------------------------------------------------------------------------------------------------------
2 Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each year reported. Dividends and distributions, if any, are assumed to be
reinvested at the net asset value on the 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.
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
and the portfolio 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 Represents portfolio turnover rate at the fund's corresponding portfolio.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT MANAGED INCOME TRUST
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Year Ended December 31,
---------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
WRIGHT TOTAL RETURN BOND FUND 1999 1998 1997 1996(3) 1995
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......... $ 13.310 $ 12.930 $ 12.500 $ 13.120 $ 11.430
-------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment income ................... $ 0.679 $ 0.680 $ 0.690 $ 0.720 $ 0.758
Net realized and unrealized gain (loss).. (1.190) 0.524 0.427 (0.631) 1.685
-------- -------- -------- -------- --------
Total income (loss)
from investment operations............. $ (0.511) $ 1.204 $ 1.117 $ 0.089 $ 2.443
-------- -------- -------- -------- --------
Less distributions:
Dividends from investment income......... $ (0.680) $ (0.690) $ (0.687) $ (0.709) $ (0.753)
Dividends in excess of net investment income (0.000)(4) - - - -
Distributions from capital gains......... (0.011) (0.133) - - -
In excess of net realized gain on investments (0.008) (0.001) - - -
-------- -------- -------- -------- --------
Total distributions.................... $ (0.699) $ (0.824) $ (0.687) $ (0.709) $ (0.753)
-------- -------- -------- -------- --------
Net asset value, end of year................ $ 12.100 $ 13.310 $ 12.930 $ 12.500 $ 13.120
========= ========= ========= ========= =========
Total return(2)............................. (3.91%) 9.56% 9.25% 0.87% 21.97%
Ratios/Supplemental Data(1)
Net assets, end of year (000 omitted).... $ 87,336 $115,937 $ 80,004 $ 91,382 $122,762
Ratio of net expenses to average net assets 0.90% 0.90% 0.90% 0.80% 0.80%
Ratio of net investment income to average
net assets............................ 5.36% 5.18% 5.50% 5.70% 6.20%
Portfolio turnover rate.................. 31% 26% 34% 96% 50%
- -----------------------------------------------------------------------------------------------------------------------------------
<FN>
1 For the year ended December 31, 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
Net investment income per share........ $ 0.678
=========
Ratios (As a percentage of average net assets):
Expenses........................... 0.91%
=========
Net investment income.............. 5.35%
=========
- ---------------------------------------------------------------------------------------------------------------------------------
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 Represents less than $(0.001) per share.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT MANAGED INCOME TRUST
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Year Ended December 31,
-----------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
WRIGHT CURRENT INCOME FUND 1999(5) 1998 1997 1996 1995
- ---------------------------------------------------------------------------------------------------------------------------------
Standard Shares
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......... $ 10.660 $ 10.630 $ 10.430 $ 10.670 $ 9.710
-------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment income(1)................. $ 0.620 $ 0.646 $ 0.658 $ 0.674 $ 0.696
Net realized and unrealized gain (loss).. (0.570) 0.028 0.206 (0.239) 0.955
-------- -------- -------- -------- --------
Total income from
investment operations............. $ 0.050 $ 0.674 $ 0.864 $ 0.435 $ 1.651
-------- -------- -------- -------- --------
Less distributions:
Dividends from investment income......... $ (0.620) $ (0.643) $ (0.664) $ (0.675) $ (0.691)
Distributions from capital gains......... - - - - -
In excess of net investment income....... - (0.001) - - -
-------- -------- -------- -------- --------
Total distributions.................. $ (0.620) $ (0.644) $ (0.664) $ (0.675) $ (0.691)
-------- -------- -------- -------- --------
Net asset value, end of year................ $ 10.090 $ 10.660 $ 10.630 $ 10.430 $ 10.670
========= ========= ========= ========= =========
Total return(2)............................. 0.52% 6.51% 8.56% 4.31% 17.46%
Ratios/Supplemental Data(1)
Net assets, end of year (000 omitted).... $ 76,452 $ 90,262 $ 76,217 $ 64,623 $66,345
Ratio of total expenses to average net assets 0.91%(4) 0.90%(4) 0.89%(4) 0.90%(4) 0.90%(4)
Ratio of net investment income
to average net assets................. 6.02% 6.03% 6.44% 6.50% 6.80%
Portfolio turnover rate ................. 0%(6) 1%(6) 3%(3) 9%(3) 26%(3)
- ----------------------------------------------------------------------------------------------------------------------------------
<FN>
1 For the years ended December 31, 1999, 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 1998 1997
---------- ------- ----------
Net investment income per share........ $ 0.615 $ 0.644 $ 0.652
========= ========= =========
Ratios (As a percentage of average net assets):
Expenses........................... 0.96%(4) 0.92%(4) 0.95%(4)
========= ========= =========
Net investment income.............. 5.97% 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.
4 Includes each fund's share of its corresponding portfolio's allocated expenses.
5 Certain of the per share data are based on average shares outstanding.
6 Represents portfolio turnover rate at the fund's corresponding portfolio.
</FN>
</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(5) 1998 1997(*)
- ---------------------------------------------------------------------------------------------------------------------------------
Institutional Shares
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of year.......... $ 10.150 $ 10.120 $ 10.000
-------- -------- --------
Income (loss) from investment operations:
Net investment income .................. $ 0.620 $ 0.619 $ 0.313
Net realized and unrealized gain (loss).. (0.560) 0.026 0.120
-------- -------- --------
Total income from
investment operations............. $ 0.060 $ 0.645 $ 0.433
-------- -------- --------
Less distributions:
Dividends from investment income......... $ (0.610) $ (0.615) $ (0.313)(4)
Distributions from capital gains......... - - -
Return of capital........................ - - -
-------- -------- --------
Total distributions.................. $ (0.610) $ (0.615) $ (0.313)
-------- -------- --------
Net asset value, end of year................ $ 9.600 $ 10.150 $ 10.120
========= ========= =========
Total return(1)............................. 0.60% 6.56% 4.40%
Ratios/Supplemental Data:
Net assets, end of year (000 omitted).... $ 23,374 $ 23,231 $ 21,801
Ratio of total expenses to average net assets 0.70%(2) 0.75%(2) 0.48%(2)(3)
Ratio of net investment income
to average net assets................. 6.23% 6.11% 4.70%(3)
Portfolio turnover rate ................. 0%(6) 1%(6) 3%(7)
- -----------------------------------------------------------------------------------------------------------------------------
<FN>
1 Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each period reported. Dividends and distributions, if any, are assumed to be
reinvested at the net asset value on the reinvestment date.
2 Includes each fund's share of its corresponding portfolio's allocated expenses.
3 Annualized.
4 Includes distribution in excess of net investment income of $0.00001 per share.
5 Certain of the per share data are based on average shares outstanding.
6 Represents portfolio turnover rate at the fund's corresponding portfolio.
7 Portfolio turnover represents the rate of portfolio activity for the period
while the fund was making investments directly in securities.
* For the period from July 7, 1997 (inception of offering of institutional
shares) to December 31, 1997.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT MANAGED INCOME TRUST
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
(1) SIGNIFICANT ACCOUNTING POLICIES
The Wright Managed Income Trust (the Trust), issuer of Wright U.S. Treasury
Money Market Fund (WTMM) series, Wright U.S. Government Near Term Fund (WNTB)
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%, 92.6%,
and 99.9% at December 31, 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 market value. WTMM's use of amortized cost
is subject to the fund's compliance with certain conditions as specified under
Rule 2a-7 of the Investment Company Act of 1940. Valuation of securities by
WNTB, WUSTB, and WCIF are discussed in Note 1A of the Portfolios' Notes to
Financial Statements which are included elsewhere in this report.
B. Interest Income - For WTMM and WTRB, interest income consists of
interest accrued and discount earned (including both original issue and market
discount) and amortization of premium or discount on long-term debt securities
when required for federal income tax purposes. The income is accrued ratably to
the date of maturity on the investments of the funds. The net investment income
of WNTB, WUSTB, and WCIF consists of the fund's pro rata share of the net
investment income of its corresponding Portfolio, less all actual and accrued
expenses of each fund determined in accordance with generally accepted
accounting principles.
C. Expense Reduction - The funds have entered into an arrangement with
their 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, 1999, the Trust, for federal
income tax purposes, had capital loss carryovers of $60,136 (WTMM), $10,819,336
(WNTB), and $1,091,554 (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 $ - $ - $ -
2000 939 2,957,673 -
2001 - - -
2002 1,921 6,936,070 676,782
2003 1,315 376,568 215,933
2004 13,981 - 113,252
2005 4,550 188,862 19,428
2006 2,146 62,582 -
2007 35,284 297,581 66,159
- -------------------------------------------------------------------------------
<PAGE>
At December 31, 1999, net capital losses of $62,236 for WTRB, $44,335 for
WNTB, and $(71,560) for WCIF attributable to security transactions incurred
after October 31, 1999 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 December 31, 1999, only WCIF had an
institutional share class.
(2) DISTRIBUTIONS
Each fund's policy is to determine net income once daily, as of the close
of the New York Stock Exchange and the net income so determined is declared as a
dividend to shareholders of record at the time of such determination.
Distributions of realized capital gains are made at least annually. Shareholders
may reinvest capital gain distributions in additional shares of the same fund at
the net asset value as of the ex-dividend date. Dividends may be reinvested in
additional shares of the same fund at the net asset value as of the payable
date.
The Trust requires that differences in the recognition or classification of
income between the financial statements and tax earnings and profits which
result in temporary overdistributions for financial statement purposes be
classified as distributions in excess of net investment income or accumulated
net realized gains.
The tax treatment of distributions for the calendar year will be reported
to shareholders prior to February 1, 2000 and will be based on tax accounting
methods which may differ from amounts determined for financial statement
purposes.
During the year ended December 31, 1999, the following amounts were
reclassified due to differences between book and tax accounting:
Accumulated
Undistributed Net
Realized Gain (Loss) Undistributed
on Investment and Net
Paid-In Foreign Currency Investment
Capital Transactions Income (Loss)
- -------------------------------------------------------------------------------
WNTB $(4,467,443) $4,467,443 $ -
WUSTB 351,022 (337,321) (13,701)
WTRB - 1,348 (1,348)
WCIF - 90,274 (90,274)
- -------------------------------------------------------------------------------
Net investment income, net realized gains (losses) and net assets were not
affected by these reclassifications.
(3) INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The Trust has engaged Wright Investors' Service, Inc. (Wright) to act as
investment adviser to the funds pursuant to the respective Investment Advisory
Contracts. Wright furnishes each fund with investment management, investment
advisory, and other services. For its services, Wright is compensated based upon
a percentage of average daily net assets which rate is adjusted as average daily
net assets exceed certain levels. For the year ended December 31, 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 reduction
of its investment adviser fee by $146,004 and $11,175 for WTMM and WTRB,
respectively.
<PAGE>
The Trust also has engaged Eaton Vance Management (Eaton Vance) to act as
administrator of the Trust. Under the Administration Agreement, Eaton Vance is
responsible for managing the business affairs of the Trust and is compensated
based upon a percentage of average daily net assets which rate is reduced as
average daily net assets exceed certain levels. For the year ended December 31,
1999, the effective annual rate was 0.07% for WTMM, 0.02% for WNTB, 0.02% for
WUSTB, 0.10% for WTRB, and 0.02% 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 employees of Eaton Vance or
Wright, Trustees and officers received remuneration for their services to the
Trust out of fees paid to Eaton Vance and Wright.
(4) DISTRIBUTION EXPENSES
The Trustees have adopted a Distribution Plan (the Plan) pursuant to Rule
12b-1 of the Investment Company Act of 1940. The Plan provides that each of the
funds, except WTMM, will pay Wright Investors' Service Distributors, Inc.
(Principal Underwriter), a wholly-owned subsidiary of Winthrop, at an annual
rate of 0.25% of the Standard shares average daily net assets of each fund for
activities primarily intended to result in the sale of each fund's Standard
shares. To enhance the net income of WNTB, WUSTB, and WCIF, the Principal
Underwriter made a reduction of its fee by $59,492, $69,865, and $48,295,
respectively.
In addition, the Trustees have adopted a service plan (the Service Plan) which
allows the funds to reimburse the Principal Underwriter for payments to
intermediaries for providing account administration and personal and account
maintenance services to their customers who are beneficial owners of shares. The
amount of service fee payable under the Service Plan with respect to each class
of shares may not exceed 0.25% annually of the average daily net assets
attributable to the respective classes. For the year ended December 31, 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>
Year Ended Year Ended
December 31, 1999 December 31, 1998
--------------------------------------------------
Shares Amount Shares Amount
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Wright U.S. Government Near Term Fund--
Sales................................................ 1,075,305 $ 10,923,918 1,605,556 $ 16,447,345
Issued to shareholders in payment of
distributions declared............................. 234,392 2,134,222 314,121 3,163,303
Redemptions.......................................... (4,937,269) (49,559,032) (2,989,009) (30,604,406)
----------- -------------- ----------- --------------
Net decrease..................................... (3,627,572) $ (36,500,892) (1,069,332) $(10,993,758)
============= =============== ============= ===============
Wright U.S. TREASURY Fund--
Sales................................................ 629,153 $ 9,000,043 1,302,718 $ 18,684,432
Issued to shareholders in payment
of distributions declared.......................... 147,786 2,366,619 231,734 3,313,736
Redemptions.......................................... (3,028,254) (41,629,883) (2,179,531) (31,426,843)
---------- -------------- ----------- --------------
Net decrease..................................... (2,251,315) $ (30,263,221) (645,079) $ (9,428,675)
=========== ============== ============= ==============
Wright Total Return Bond Fund--
Sales................................................ 3,332,918 $ 42,519,725 3,355,655 $ 44,394,191
Issued to shareholders in payment
of distributions declared.......................... 369,267 4,298,435 344,502 4,544,209
Redemptions.......................................... (5,191,831) (65,071,699) (1,178,486) (15,541,882)
---------- -------------- ----------- --------------
Net increase (decrease).......................... (1,489,646) $ (18,253,539) 2,521,671 $ 33,396,518
============= ================= ============= =================
<PAGE>
Wright Current Income Fund -- Standard Shares
Sales................................................ 2,134,187 $ 22,254,853 2,263,717 $ 24,121,027
Issued to shareholders in payment
of distributions declared.......................... 318,512 3,027,283 310,036 3,306,097
Redemptions.......................................... (3,337,993) (34,559,692) (1,275,036) (13,585,460)
---------- -------------- ----------- --------------
Net increase (decrease).......................... (885,294) $ (9,277,556) 1,298,717 $ 13,841,664
============ ================ ============ ================
Wright Current Income Fund-- Institutional Shares
Issued to shareholders in payment
of distributions declared.......................... 145,647 $ 1,431,824 134,484 $ 1,363,651
---------- -------------- ----------- --------------
Net increase..................................... 145,647 $ 1,431,824 134,484 $ 1,363,651
============ ================ ============ ================
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(6) INVESTMENT TRANSACTIONS
The Trust invests primarily in debt securities. The ability of the issuers
of the debt securities held by the Trust to meet their obligations may be
affected by economic developments in a specific industry or municipality.
Purchases and sales and maturities of investments, other than short-term
obligations, were as follows:
Year Ended Dec. 31, 1999
Wright Total
Return Bond Fund
- -------------------------------------------------------------------------------
Purchases--
Non-U.S. Obligations $ 17,721,967
==============
U.S. Gov't Obligations $ 14,029,316
==============
Sales--
Non-U.S. Gov't Obligation $ 10,828,084
==============
U.S. Gov't Obligations $ 32,811,835
==============
Increases and decreases in each fund's investment in its corresponding
Portfolio for the year ended December 31, 1999 were as follows:
WNTB WUSTB WCIF
- -------------------------------------------------------------------------------
Increases $11,025,277 $9,038,191 $22,298,864
Decreases (51,809,661) (42,945,499) (36,943,595)
(7) FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES
The cost and unrealized appreciation (depreciation) at December 31, 1999,
as computed on a federal income tax basis, are as follows:
Wright Total Return
Bond Fund
- -------------------------------------------------------------------------------
Aggregate cost............................ $ 89,765,688
=============
Gross unrealized appreciation............. $ 164,832
Gross unrealized depreciation............. (5,047,377)
------------
Net unrealized depreciation............... $ 4,882,545
=============
(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 year ended December 31, 1999.
<PAGE>
WRIGHT MANAGED INCOME TRUST
- -------------------------------------------------------------------------------
INDEPENDENT AUDITORS' REPORT
To the Trustees and Shareholders of
The Wright Managed Income Trust:
We have audited the accompanying statements of assets and liabilities,
including the portfolios of investments of the Wright U.S. Treasury
Money Market Fund and Wright Total Return Bond Fund, of The Wright
Managed Income Trust (the Trust) (comprising, respectively, of Wright
U.S. Treasury Money Market Fund, Wright U.S. Government Near Term Fund,
Wright U.S. Treasury Fund, Wright Total Return Bond Fund, and Wright
Current Income Fund) as of December 31, 1999, the related statements of
operations for the year then ended, the statements of changes in net
assets for the years ended December 31, 1999 and 1998, and the
financial highlights for each of the years in the five-year period
ended December 31, 1999. These financial statements and financial
highlights are the responsibility of the Trust's management. Our
responsibility is to express an opinion on these financial statements
and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements
and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. Our procedures included
confirmation of the securities owned at December 31, 1999, by
correspondence with the custodian. An audit also includes assessing the
accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for
our opinion.
In our opinion, such financial statements and financial highlights
present fairly, in all material respects, the financial position of
each of the aforementioned Funds of The Wright Managed Income Trust as
of December 31, 1999, the results of their operations, the changes in
their net assets, and their financial highlights for the respective
stated periods in conformity with generally accepted accounting
principles.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
February 4, 2000
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
- -------------------------------------------------------------------------------
SELECTED BLUE CHIP EQUITIES PORTFOLIO (SBCP)
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1999
- -------------------------------------------------------------------------------
ASSETS:
Investments -
Identified cost....................... $59,242,450
Unrealized appreciation............... 15,672,699
------------
Total investments, at value (Note 1A). $74,915,149
Cash.................................... 824
Receivable for investments sold......... 5,703,223
Dividends and interest receivable....... 42,472
Deferred organization expenses (Note 1C) 15,039
------------
Total Assets.......................... $80,676,707
------------
LIABILITIES:
Notes payable........................... $ 5,172,000
Accrued expenses and other liabilities.. 22,165
------------
Total Liabilities...................... $ 5,194,165
------------
NET ASSETS APPLICABLE TO
INVESTORS' INTEREST IN PORTFOLIO........ $75,482,542
=============
NET ASSETS CONSISTS OF:
Net proceeds from capital contributions and
withdrawals............................ $59,809,843
Unrealized appreciation of investments
(computed on the basis of identified cost) 15,672,699
------------
Total................................. $75,482,542
=============
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1999
- -------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1G):
Income -
Dividends.............................. $ 2,029,627
Interest............................... 114,498
------------
Total income.......................... $ 2,144,125
------------
Expenses -
Investment adviser fee (Note 2)........ $ 843,755
Administrator fee (Note 2)............. 220,457
Compensation of Trustees not employees of
the investment adviser or administrator 5,725
Custodian fee (Note 1D)................ 77,563
Interest expense....................... 30,478
Audit fees............................. 28,073
Legal.................................. 146
Amortization of organization expenses (Note 1C) 5,771
Miscellaneous.......................... 57
------------
Total expenses........................ $ 1,212,025
------------
Deduct -
Waiver of investment adviser fee (Note 2) $ (11,400)
Reduction of custodian fee (Note 1D).. (9,043)
------------
Total deduction.................. $ (20,443)
------------
Net expenses..................... $ 1,191,582
------------
Net investment income......... $ 952,543
------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain on investment transactions
(identified cost basis)................ $41,111,687
Change in unrealized depreciation
of investments ........................ (39,940,696)
------------
Net realized and unrealized gain
on investments......................... $ 1,170,991
------------
Net increase in net assets
from operations.................... $ 2,123,534
=============
See notes to financial statements
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
- --------------------------------------------------------------------------------
SELECTED BLUE CHIP EQUITIES PORTFOLIO (SBCP)
<TABLE>
<CAPTION>
Year Ended
December 31
-------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS 1999 1998
- ---------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From operations -
<S> <C> <C>
Net investment income...................................................... $ 952,543 $ 2,011,687
Net realized gain on investments........................................... 41,111,687 15,538,127
Change in unrealized appreciation (depreciation)
of investments........................................................... (39,940,696) (20,336,710)
------------ ------------
Net increase (decrease) in net assets from operations.................... $ 2,123,534 $ (2,786,896)
------------ ------------
Capital transactions -
Contributions.............................................................. $ 28,835,743 $ 40,294,485
Withdrawals................................................................ (177,133,426) (75,343,029)
------------ ------------
Decrease in net assets resulting from capital transactions................... $(148,297,683) $(35,048,544)
------------ ------------
Net decrease in net assets................................................... $(146,174,149) $(37,835,440)
NET ASSETS:
At beginning of year......................................................... 221,656,691 259,492,131
------------ ------------
At end of year............................................................... $ 75,482,542 $ 221,656,691
============= =============
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
- -------------------------------------------------------------------------------
INTERNATIONAL BLUE CHIP EQUITIES PORTFOLIO (IBCP)
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1999
- -------------------------------------------------------------------------------
ASSETS:
Investments -
Identified cost....................... $121,697,318
Unrealized appreciation............... 54,533,065
------------
Total investments, at value (Note 1A). $176,230,383
Foreign currency, at value
(identified cost $315,926)............. 315,300
Tax reclaim receivable.................. 132,137
Dividends and interest receivable....... 59,503
Deferred organization expenses (Note 1C) 15,039
------------
Total Assets.......................... $176,752,362
------------
LIABILITIES:
Notes payable........................... $ 2,977,000
Cash overdraft.......................... 941,298
Payable for investments purchased....... 315,300
Accrued expenses and other liabilities.. 47,575
------------
Total Liabilities...................... $ 4,281,173
------------
NET ASSETS APPLICABLE TO
INVESTORS' INTEREST IN PORTFOLIO........ $172,471,189
=============
NET ASSETS CONSISTS OF:
Net proceeds from capital contributions and
withdrawals............................ $117,951,584
Unrealized appreciation of investments
and foreign currency transactions (computed
on the basis of identified cost)....... 54,519,605
------------
Total................................. $172,471,189
=============
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1999
- -------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1G):
Income -
Dividends.............................. $ 2,599,769
Interest............................... 160,557
Less: Foreign taxes.................... (304,401)
------------
Total income.......................... $ 2,455,925
------------
Expenses -
Investment adviser fee (Note 2)........ $ 1,290,967
Administrator fee (Note 2)............. 235,077
Compensation of Trustees not employees of
the investment adviser or administrator 1,750
Custodian fee (Note 1D)................ 289,476
Interest expense....................... 45,552
Audit fees............................. 32,048
Legal.................................. 146
Amortization of organization expenses
(Note 1C)............................. 5,771
Miscellaneous.......................... 276
------------
Total expenses........................ $ 1,901,063
------------
Net investment income................ $ 554,862
------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain on investment and foreign
currency transactions
(identified cost basis) $32,973,325
Change in unrealized appreciation of
investments and translation of assets and
liabilities in foreign currencies...... 12,787,420
------------
Net realized and unrealized gain on
investments and foreign currency....... $45,760,745
------------
Net increase in net assets
from operations.................... $46,315,607
=============
See notes to financial statements
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
- -------------------------------------------------------------------------------
INTERNATIONAL BLUE CHIP EQUITIES PORTFOLIO (IBCP)
<TABLE>
<CAPTION>
Year Ended
December 31
-------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS 1999 1998
- -------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From operations -
<S> <C> <C>
Net investment income...................................................... $ 554,862 $ 1,985,552
Net realized gain on investments........................................... 32,973,325 20,726,522
Change in unrealized appreciation (depreciation) of investments............ 12,787,420 (11,296,007)
------------ ------------
Net increase in net assets from operations............................... $ 46,315,607 $ 11,416,067
------------ ------------
Capital transactions -
Contributions.............................................................. $ 80,846,539 $110,766,485
Withdrawals................................................................ (166,921,499) (166,998,630)
------------ ------------
Decrease in net assets resulting from capital transactions................... $(86,074,960) $(56,232,145)
------------ ------------
Net decrease in net assets................................................... $(39,759,353) $(44,816,078)
NET ASSETS:
At beginning of year......................................................... 212,230,542 257,046,620
------------ ------------
At end of year............................................................... $172,471,189 $ 212,230,542
============= =============
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
- -------------------------------------------------------------------------------
U.S. GOVERNMENT NEAR TERM PORTFOLIO (NTBP)
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1999
- -------------------------------------------------------------------------------
ASSETS:
Investments -
Identified cost....................... $52,649,375
Unrealized depreciation............... (710,907)
------------
Total investments, at value (Note 1A). $51,938,468
Cash.................................... 214,371
Interest receivable..................... 802,756
Deferred organization expenses (Note 1C) 14,076
------------
Total assets.......................... $52,969,671
------------
LIABILITIES:
Accrued expenses and other liabilities.. $ 6,639
------------
NET ASSETS APPLICABLE TO
INVESTORS' INTEREST IN PORTFOLIO........ $52,963,032
=============
NET ASSETS CONSISTS OF:
Net proceeds from capital contributions and
withdrawals............................ $53,673,939
Unrealized depreciation of investments
(computed on the basis of identified cost) (710,907)
------------
Total................................. $52,963,032
=============
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1999
- ------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1G):
Income -
Interest Income........................ $ 4,583,781
------------
Expenses -
Investment adviser fee (Note 2)........ $ 299,429
Administrator fee (Note 2)............. 74,857
Compensation of Trustees not employees of
the investment adviser or administrator 1,851
Custodian fee (Note 1D)................ 31,283
Audit fees............................. 9,940
Miscellaneous.......................... 6,637
Amortization of organization expenses
(Note 1C)............................. 5,803
------------
Total expenses........................ $ 429,800
------------
Deduct -
Reduction of custodian fee (Note 1D).. (5,415)
------------
Net expenses....................... $ 424,385
------------
Net investment income............ $ 4,159,396
------------
REALIZED AND UNREALIZED LOSS
ON INVESTMENTS:
Net realized loss on investment transactions
(identified cost basis)................ $ (341,915)
Net change in unrealized depreciation
of investments......................... (2,270,040)
------------
Net realized and unrealized loss
on investments......................... $(2,611,955)
------------
Net increase in net assets
from operations.................... $ 1,547,441
=============
See notes to financial statements
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
- -------------------------------------------------------------------------------
U.S. GOVERNMENT NEAR TERM PORTFOLIO (NTBP)
<TABLE>
<CAPTION>
Year Ended
December 31
---------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS 1999 1998
- ------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From operations -
<S> <C> <C>
Net investment income...................................................... $ 4,159,396 $ 5,724,793
Net realized loss on investments........................................... (341,915) (45,686)
Change in unrealized appreciation (depreciation) of investments............ (2,270,040) 580,237
------------ ------------
Net increase in net assets from operations............................... $ 1,547,441 $ 6,259,344
------------ ------------
Capital transactions -
Contributions.............................................................. $ 11,025,277 $ 17,618,408
Withdrawals................................................................ (51,809,661) (34,539,216)
------------ ------------
Decrease in net assets resulting from capital transactions................... $(40,784,384) $(16,920,808)
------------ ------------
Net decrease in net assets................................................... $(39,236,943) $(10,661,464)
NET ASSETS:
At beginning of year......................................................... 92,199,975 102,861,439
------------ ------------
At end of year............................................................... $ 52,963,032 $ 92,199,975
============= =============
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
- -------------------------------------------------------------------------------
U.S. TREASURY PORTFOLIO (USTBP)
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1999
- -------------------------------------------------------------------------------
ASSETS:
Investments -
Identified cost....................... $34,051,904
Unrealized depreciation............... (920,948)
------------
Total investments, at value (Note 1A). $33,130,956
Cash.................................... 48,583
Interest receivable..................... 565,890
Deferred organization expenses (Note 1C) 14,037
------------
Total assets.......................... $ 33,759,466
------------
LIABILITIES:
Accrued expenses and other liabilities.. $ 6,311
------------
NET ASSETS APPLICABLE TO
INVESTORS' INTEREST IN PORTFOLIO........ $33,753,155
=============
NET ASSETS CONSISTS OF:
Net proceeds from capital contributions and
withdrawals............................ $34,674,103
Unrealized depreciation of investments
(computed on the basis of identified cost) (920,948)
------------
Total................................. $33,753,155
=============
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1999
- -------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1G):
Income -
Interest Income........................ $ 3,272,484
------------
Expenses -
Investment adviser fee (Note 2)........ $ 213,958
Administrator fee (Note 2)............. 53,490
Compensation of Trustees not employees of
the investment adviser or administrator 1,702
Custodian fee (Note 1D)................ 28,860
Audit fees............................. 9,940
Interest expense....................... 187
Amortization of organization expenses
(Note 1C)............................. 5,822
Miscellaneous.......................... 6,311
------------
Total expenses........................ $ 320,270
------------
Deduct -..............................
Reduction of custodian fee (Note 1D).. (11,250)
------------
Net expenses....................... $ 309,020
------------
Net investment income............ $ 2,963,464
------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain on investment transactions
(identified cost basis)................ $ 847,235
Net change in unrealized depreciation
of investments......................... (5,992,168)
------------
Net realized and unrealized loss
on investments......................... $(5,144,933)
------------
Net decrease in net assets
from operations.................... $(2,181,469)
=============
See notes to financial statements
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
- -----------------------------------------------------------------------------
U.S. TREASURY PORTFOLIO (USTBP)
<TABLE>
<CAPTION>
Year Ended
December 31
----------------------------------
STATEMENTS OF CHANGES IN NET ASSETS 1999 1998
- ---------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From operations -
<S> <C> <C>
Net investment income...................................................... $ 2,963,464 $ 3,926,971
Net realized gain on investments........................................... 847,235 984,728
Change in unrealized appreciation (depreciation) of investments............ (5,992,168) 2,386,702
------------ ------------
Net increase (decrease) in net assets from operations.................... $ (2,181,469) $ 7,298,401
------------ ------------
Capital transactions -
Contributions.............................................................. $ 11,578,470 $ 18,675,207
Withdrawals................................................................ (42,973,499) (33,182,454)
------------ ------------
Decrease in net assets resulting from capital transactions................... $(31,395,029) $(14,507,247)
------------ ------------
Net decrease in net assets................................................... $(33,576,498) $ (7,208,846)
NET ASSETS:
At beginning of year......................................................... 67,329,653 74,538,499
------------ ------------
At end of year............................................................... $ 33,753,155 $ 67,329,653
============= =============
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
- ------------------------------------------------------------------------------
CURRENT INCOME PORTFOLIO (CIFP)
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1999
- -------------------------------------------------------------------------------
ASSETS:
Investments -
Identified cost....................... $102,259,801
Unrealized depreciation............... (3,491,250)
------------
Total investments, at value (Note 1A). $98,768,551
Cash.................................... 583,461
Interest receivable..................... 632,860
Deferred organization expenses (Note 1C) 13,862
------------
Total assets.......................... $ 99,998,734
------------
LIABILITIES:
Accrued expenses and other liabilities.. $ 11,637
------------
NET ASSETS APPLICABLE TO
INVESTORS' INTEREST IN PORTFOLIO........ $99,987,097
=============
NET ASSETS CONSISTS OF:
Net proceeds from capital contributions and
withdrawals............................ $103,478,347
Unrealized depreciation of investments
(computed on the basis of identified cost) (3,491,250)
------------
Total................................. $ 99,987,097
=============
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1999
- -------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1G):
Income -
Interest Income........................ $ 7,386,581
------------
Expenses -
Investment adviser fee (Note 2)........ $ 434,441
Administrator fee (Note 2)............. 103,352
Compensation of Trustees not employees of
the investment adviser or administrator 1,983
Custodian fee (Note 1D)................ 48,098
Audit fees............................. 22,607
Amortization of organization expenses
(Note 1C)............................. 5,822
Interest expense....................... 206
Miscellaneous.......................... 11,402
------------
Total expenses........................ $ 627,911
------------
Net investment income............ $ 6,758,670
------------
REALIZED AND UNREALIZED LOSS
ON INVESTMENTS:
Net realized loss on investment transactions
(identified cost basis)................ $ (199,779)
Net change in unrealized depreciation
of investments......................... (5,633,815)
------------
Net realized and unrealized loss
on investments......................... $(5,833,594)
------------
Net decrease in net assets
from operations.................... $ 925,076
=============
See notes to financial statements
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
- -------------------------------------------------------------------------------
CURRENT INCOME PORTFOLIO (CIFP)
<TABLE>
<CAPTION>
Year Ended
December 31
---------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS 1999 1998
- ------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From operations -
<S> <C> <C>
Net investment income...................................................... $ 6,758,670 $ 6,757,613
Net realized loss on investments........................................... (199,779) (142,545)
Change in unrealized appreciation (depreciation) of investments............ (5,633,815) 406,744
------------ ------------
Net increase in net assets from operations............................... $ 925,076 $ 7,021,812
------------ ------------
Capital transactions -
Contributions.............................................................. $ 22,298,864 $ 24,506,099
Withdrawals................................................................ (36,943,595) (15,586,545)
------------ ------------
Increase (decrease) in net assets resulting from capital transactions........ $(14,644,731) $ 8,919,554
------------ ------------
Net increase (decrease) in net assets........................................ $(13,719,655) $ 15,941,366
NET ASSETS:
At beginning of year......................................................... 113,706,752 97,765,386
------------ ------------
At end of year............................................................... $ 99,987,097 $113,706,752
============= =============
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
- -------------------------------------------------------------------------------
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
Year Ended December 31
--------------------------------------
Selected Blue Chip Equities Portfolio (SBCP) 1999 1998 1997(2)
- ---------------------------------------------------------------------------------------------------------------------------
Ratios (As a percentage of average daily net assets):++
<S> <C> <C> <C>
Net expenses 0.85% 0.77% 0.66%(+)
Net expenses after custodian fee reduction1 0.84% - -
Net investment income 0.67% 0.80% 1.08%(+)
Portfolio Turnover 106% 78% 28%
Net assets, end of year (000 omitted) $ 75,483 $221,657 $259,492
- ----------------------------------------------------------------------------------------------------------------------------
<FN>
+ Annualized.
++ For the year ended December 31, 1999, the operating expenses of SBCP reflect
a waiver of the investment adviser fee. Had such action not been taken, the
ratios would have been as follows:
1999
Ratios (As a percentage of average daily net assets):
Expenses 0.86%
Expenses after custodian fee reduction1 0.85%
Net investment income 0.66%
1 Reporting guidelines require the 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.
2 For the period from the start of business, May 2, 1997 to December 31, 1997.
</FN>
</TABLE>
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended December 31
--------------------------------------------
INTERNATIONAL BLUE CHIP EQUITIES PORTFOLIO (IBCP) 1999 1998 1997(1)
- ---------------------------------------------------------------------------------------------------------------------------------
Ratios (As a percentage of average daily net assets):
<S> <C> <C> <C>
Net expenses 1.14% 1.01% 0.90%(+)
Net investment income 0.33% 0.77% 0.95%(+)
Portfolio Turnover 105% 66% 37%
Net assets, end of year (000 omitted) $172,471 $212,231 $257,047
- ---------------------------------------------------------------------------------------------------------------------------------
<FN>
+ Annualized.
1 For the period from the start of business, May 2, 1997 to December 31, 1997.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
- -------------------------------------------------------------------------------
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
Year Ended December 31
--------------------------------
U.S. GOVERNMENT NEAR TERM PORTFOLIO (NTBP) 1999 1998 1997(2)
- ------------------------------------------------------------------------------------------------------------------------------
Ratios (As a percentage of average daily net assets):
<S> <C> <C> <C> <C>
Net expenses(1) 0.58% 0.57% 0.46%(+)
Net investment income 5.60% 5.68% 6.24%(+)
Portfolio Turnover 0% 10% 0%
Net assets, end of year (000 omitted) $52,963 $92,200 $102,861
- ---------------------------------------------------------------------------------------------------------------------------------
<FN>
+ Annualized.
1 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 0.57% for the year ended December 31,
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 period from the start of business, May 2, 1997 to December 31, 1997.
</FN>
</TABLE>
<TABLE>
<CAPTION>
Year Ended December 31
--------------------------------------
U.S. TREASURY PORTFOLIO (USTBP) 1999 1998 1997(2)
- --------------------------------------------------------------------------------------------------------------------------
Ratios (As a percentage of average daily net assets)++:
<S> <C> <C> <C> <C> <C>
Net expenses(1) 0.60% 0.57% 0.56%(+)
Net investment income 5.57% 5.45% 6.11%(+)
Portfolio Turnover 0% 7% 0%
Net assets, end of year (000 omitted) $33,753 $67,330 $74,536
- -----------------------------------------------------------------------------------------------------------------------------
<FN>
+ Annualized.
++ 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 a percentage of average daily net assets):
Expenses 0.58%
Net Expenses 0.55%
Net Investment Income 5.44%
- --------------------------------------------------------------------------------------------------------------------
1 Reporting guidelines require the 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 0.58% for the year ended December 31,
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 period from the start of business, May 2, 1997 to December 31, 1997.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
- -------------------------------------------------------------------------------
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
Year Ended December 31
----------------------------------------
Current Income Portfolio (CIFP) 1999 1998 1997(1)
- ----------------------------------------------------------------------------------------------------------------------------
Ratios (As a percentage of average daily net assets):
<S> <C> <C> <C> <C> <C>
Net expenses(1) 0.59% 0.57% 0.48%(+)
Net investment income 6.32% 6.33% 6.66%(+)
Portfolio Turnover 0% 1% 7%
Net assets, end of year (000 omitted) $99,987 $113,707 $97,765
- -------------------------------------------------------------------------------------------------------------------------------
<FN>
+ Annualized.
1 For the period from the start of business, May 2, 1997 to December 31, 1997.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
- -------------------------------------------------------------------------------
(1) Significant Accounting Policies
The Wright Blue Chip Master Portfolio Trust (the Trust), issuer of Selected
Blue Chip Equities Portfolio (Selected Portfolio), 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.
(2) INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The Trust has engaged Wright Investors' Service, Inc. (Wright) to act as
investment adviser to the portfolios pursuant to the respective Investment
Advisory Contracts. Wright furnishes each portfolio with investment management,
investment advisory, and other services. For its services, Wright is compensated
based upon a percentage of average daily net assets, which rate is adjusted as
average daily net assets exceed certain levels. For the year ended December 31,
1999, the effective annual rate was 0.59% for the Selected Portfolio, 0.76% for
the International Portfolio, 0.40% for the Term Portfolio, 0.40% for the
Treasury Portfolio, and 0.41% for the Income Portfolio. Additionally, $11,400 of
expenses were waived by the investment adviser for the Selected Portfolio.
The Trust has engaged Eaton Vance Management (Eaton Vance) to act as
administrator of the Trust. Under the Administration Agreement, Eaton Vance is
responsible for managing the business affairs of the Trust and is compensated
based upon a percentage of average daily net assets which rate is reduced as
average daily net assets exceed certain levels. For the year ended December 31,
1999, the effective annual rate was 0.16% for the Selected Portfolio, 0.14% for
the International Portfolio, 0.10% for the Term Portfolio, 0.10% for the
Treasury Portfolio, and 0.10% 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 employees of Wright, Trustees and officers receive remuneration for
their services to the portfolios out of the fees paid to Wright.
(3) INVESTMENTS
The Term Portfolio, Treasury Portfolio, and Income Portfolio invest
primarily in debt securities. The ability of the issuers of these debt
securities held by the portfolios to meet their obligations may be affected by
economic developments in a specific industry or municipality. Purchases and
sales of investments, other than U.S. Government securities and short-term
obligations, for the year ended December 31, 1999 were as follows:
<PAGE>
<TABLE>
<CAPTION>
Selected International U.S. Government U.S. Current
Blue Chip Blue Chip Near Term Treasury Income
Portfolio Portfolio Portfolio Portfolio Portfolio
- -----------------------------------------------------------------------------------------------------------------------------
Purchases -
<S> <C> <C> <C> <C> <C>
Non-U.S. Gov't Obligations $ 147,804,525 $ 172,866,639 $ -- $ -- $ --
============ ============ ============ ============ ============
U.S. Gov't Obligations $ -- $ -- $ 13,913,395 $ 9,122,094 $ 17,686,654
============ ============ ============ ============ ============
Sales -
Non-U.S. Gov't Obligations $ 293,794,537 $ 248,267,632 $ -- $ -- $ --
============ ============ ============ ============ ============
U.S. Gov't. Obligations $ -- $ -- $ 45,874,409 $ 36,439,184 $ 1,460,118
============ ============ ============ ============ ============
</TABLE>
(4) FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES
The cost and unrealized appreciation (depreciation) of the investment
securities owned at December 31, 1999, as computed on a federal income tax
basis, are as follows:
<TABLE>
<CAPTION>
Selected International U.S. Government U.S. Current
Blue Chip Blue Chip Near Term Treasury Income
Portfolio Portfolio Portfolio Portfolio Portfolio
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Aggregate cost $ 59,608,217 $122,558,972 $ 52,649,375 $ 34,051,904 $102,259,801
============ ============ ============ ============ ============
Gross unrealized appreciation $ 16,568,784 $ 56,271,884 $ 45,192 $ 78,208 $ 270,031
Gross unrealized depreciation (1,261,852) (2,600,473) (756,099) (999,156) (3,761,281)
----------- ----------- ----------- ----------- -----------
Net unrealized
appreciation (depreciation) $ 15,306,932 $ 53,671,411 $ (710,907) $ (920,948) $ (3,491,250)
============ ============ ============ ============ ============
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(5) FINANCIAL INSTRUMENTS
The portfolios may trade in financial instruments with off-balance sheet
risk in the normal course of their investing activities in order to manage
exposure to market risks such as interest rates and foreign currency exchange
rates. These financial instruments include forward foreign currency contracts
for the International Portfolio. The notional or contractual amounts of these
instruments represent the investment the portfolio has in particular classes of
financial instruments and does not necessarily represent the amounts potentially
subject to risk. The measurement of the risks associated with these instruments
is meaningful only when all related and offsetting transactions are considered.
As of December 31, 1999, the International Portfolio had no forward foreign
currency exchange contracts open.
<PAGE>
(6) RISKS ASSOCIATED WITH FOREIGN INVESTMENTS
The International Portfolio's investing in securities issued by companies whose
principal business activities are outside the United States may involve
significant risks not present in domestic investments. For example, there is
generally less publicly available information about foreign companies,
particularly those not subject to the disclosure and reporting requirements of
the U.S. securities laws. Foreign issuers are generally not bound by uniform
accounting, auditing, and financial reporting requirements and standards of
practice comparable to those applicable to domestic issuers. Investments in
foreign securities also involve the risk of possible adverse changes in
investment or exchange control regulations, expropriation or confiscatory
taxation, limitation on the removal of funds or other assets of International
Portfolio, political or financial instability or diplomatic and other
developments which could affect such investments. Foreign stock markets, while
growing in volume and sophistication, are generally not as developed as those in
the United States, and securities of some foreign issuers (particularly those
located in developing countries) may be less liquid and more volatile than
securities of comparable U.S. companies. In general, there is less overall
governmental supervision and regulation of foreign securities markets,
broker-dealers, and issuers than in the United States.
Settlement of securities transactions in foreign countries may be delayed
and is generally less frequent than in the United States, which could affect the
liquidity of International Portfolio's assets. International Portfolio may be
unable to sell securities where the registration process is incomplete and may
experience delays in receipt of dividends.
(7) LINE OF CREDIT
The portfolios participate with other funds managed by Wright in a
committed $20 million unsecured line of credit agreement with a bank. The
portfolios may temporarily borrow from the line of credit to settle investment
transactions. Interest is charged to each 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 and portfolios at the end
of each quarter. At December 31, 1999, loans outstanding under the credit
facility totalled $5,172,000 and $2,977,000 for the Selected Portfolio and the
International Portfolio, respectively.
<PAGE>
WRIGHT BLUE CHIP MASTER PORTFOLIO TRUST
- -------------------------------------------------------------------------------
INDEPENDENT AUDITORS' REPORT
To the Trustees and Investors of
The Wright Blue Chip Master Portfolio Trust:
We have audited the accompanying statements of assets and liabilities,
including the portfolios of investments, of The Wright Blue Chip Master
Portfolio Trust (the Trust) (comprising, respectively, of Wright
Selected Blue Chip Equities Portfolio, Wright International Blue Chip
Equities Portfolio, Wright U.S. Government Near Term Portfolio, Wright
U.S. Treasury Portfolio, and Wright Current Income Portfolio) as of
December 31, 1999, the related statements of operations for the year
then ended, the statements of changes in net assets for the years ended
December 31, 1999 and 1998, and supplementary data for each of the
years in the three year period ended December 31, 1999. These financial
statements and supplementary data are the responsibility of the Trust's
management. Our responsibility is to express an opinion on these
financial statements and supplementary data based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements
and supplementary data are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. Our procedures included
confirmation of the securities owned at December 31, 1999, by
correspondence with the custodian and brokers; where replies were not
received from brokers, we performed other auditing procedures. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, such financial statements and supplementary data
present fairly, in all material respects, the financial position of
each of the aforementioned funds of The Wright Blue Chip Master
Portfolio Trust as of December 31, 1999, the results of their
operations, the changes in their net assets, and their supplementary
data for the respective stated periods in conformity with generally
accepted accounting principles.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
February 4, 2000
<PAGE>
WRIGHT MAJOR BLUE CHIP EQUITIES FUND (WMBC)
- -------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS - December 31, 1999
Shares Value
EQUITY INTERESTS -- 99.4%
BEVERAGES -- 2.5%
Anheuser Busch Cos. Inc............. 8,300 $ 588,263
Coca-Cola Co........................ 26,200 1,526,150
Pepsico, Inc........................ 44,800 1,579,200
-----------
$ 3,693,613
-----------
CHEMICALS -- 2.3%
Du Pont (E.I.) de Nemours........... 51,400 $ 3,385,975
-----------
DIVERSIFIED -- 8.1%
General Electric Co................. 25,100 $ 3,884,225
Procter & Gamble Co................. 21,200 2,322,725
Tyco International Ltd.............. 67,800 2,635,725
United Technologies................. 46,200 3,003,000
-----------
$ 11,845,675
-----------
DRUGS, COSMETICS & HEALTHCARE -- 9.5%
Bristol-Myers Squibb Co............. 43,500 $ 2,792,156
Gillette Co......................... 16,000 659,000
Johnson & Johnson................... 30,400 2,831,000
Medtronics, Inc..................... 70,800 2,579,775
Merck & Co., Inc.................... 42,000 2,816,625
Pfizer Inc.......................... 69,000 2,238,188
-----------
$ 13,916,744
-----------
ELECTRONICS -- 26.1%
Cisco Systems, Inc.................. 42,000 $ 4,499,250
Computer Associates Int'l. Inc...... 59,400 4,154,288
EMC Corp./Mass...................... 34,800 3,801,900
Gateway Inc......................... 16,700 1,203,444
Intel Corporation................... 46,800 3,852,225
International Business Machine...... 38,600 4,168,800
Microsoft Corporation............... 52,100 6,082,675
Oracle Corp......................... 44,550 4,992,384
Solectron Corp...................... 10,700 1,017,838
Sun Microsystems, Inc............... 57,600 4,463,588
-----------
$ 38,236,392
-----------
FINANCIAL -- 14.9%
American Express Co................. 24,600 $ 4,091,092
American Int'l. Group............... 27,981 3,025,166
BB&T Corporation.................... 79,200 2,168,100
Chase Manhattan Corp................ 34,300 2,664,681
Citigroup........................... 53,950 2,997,597
Federal National Mort. Assoc........ 32,100 2,004,244
Jefferson Pilot Corp................ 38,100 2,600,325
Keycorp (New)....................... 101,300 2,244,411
-----------
$ 21,795,616
-----------
FOOD -- 0.3%
Kellogg Co.......................... 15,400 $ 474,513
-----------
MACHINERY & EQUIPMENT -- 1.4%
Pitney Bowes, Inc................... 41,500 $ 2,004,969
-----------
METAL PRODUCERS -- 0.7%
Alcoa Inc........................... 12,200 $ 1,012,600
-----------
METAL PRODUCTS MANUFACTURERS -- 1.5%
Illinois Tool Works Inc............. 32,900 $ 2,222,806
-----------
OIL, GAS, COAL & RELATED SERVICES -- 7.5%
Chevron Corporation................. 29,300 $ 2,538,113
Exxon Mobil Corp.................... 67,006 5,398,108
Halliburton Company................. 38,600 1,553,650
Schlumberger Ltd.................... 23,000 1,293,750
Transocean Sedco Forex Inc.......... 4,452 150,004
-----------
$ 10,933,625
-----------
PAPER -- 1.8%
Kimberly-Clark Corporation.......... 40,300 $ 2,629,575
-----------
RECREATION -- 1.0%
McDonald's Corporation.............. 17,200 $ 693,375
Walt Disney Company................. 24,000 702,000
-----------
$ 1,395,375
-----------
<PAGE>
RETAILERS -- 7.8%
Albertson's Inc..................... 31,843 $ 1,026,937
Costco Wholesale Corp............... 30,300 2,764,875
Lowes Co's., Inc.................... 41,500 2,479,625
TJX Cos. Inc. New................... 110,100 2,250,169
Wal-Mart Stores Inc................. 43,700 3,020,763
-----------
$ 11,542,369
-----------
UTILITIES -- 10.3%
Alltel Corporation.................. 22,400 $ 1,852,200
Bellsouth Corp...................... 56,800 2,658,950
Duke Energy Corp.................... 68,000 3,408,500
MCI Worldcom, Inc................... 68,550 3,637,434
SBC Communications, Inc............. 71,200 3,471,000
-----------
$ 15,028,084
-----------
MISCELLANEOUS -- 3.7%
America Online Inc.................. 6,700 $ 505,431
Avery-Dennison Corp................. 12,000 874,500
Electronic Data Systems Corp........ 50,700 3,393,731
Sysco Corp.......................... 16,900 668,606
-----------
$ 5,442,268
-----------
TOTAL EQUITY INTERESTS -- 99.4%
(identified cost, $117,041,035) $145,560,199
-----------
OTHER ASSETS,
LESS LIABILITIES -- 0.6% 835,304
-----------
NET ASSETS -- 100% $146,395,503
============
* Non-income-producing security.
<PAGE>
WRIGHT TOTAL RETURN BOND FUND (WTRB)
- -------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS - December 31, 1999
<TABLE>
<CAPTION>
Face Coupon Maturity Market Current Yield To
Amount Description Rate Date Price Value Yield(1) Maturity(1)
- ---------------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS
FINANCIAL
<S> <C> <C> <C> <C> <C> <C> <C>
$ 1,100,000 Ameritech Cap 6.150% 1/15/08 $ 92.790 $ 1,020,690 6.63% 6.00%
2,000,000 Associates Corp. 6.450% 10/15/01 99.246 1,984,920 6.50% 6.90%
3,200,000 Ford Motor Co. 6.500% 8/01/18 87.779 2,808,928 7.40% 7.60%
1,000,000 Ford Motor Credit 6.500% 2/28/02 98.950 989,500 6.57% 7.00%
1,240,000 Ford Motor Credit 5.800% 1/12/09 88.626 1,098,962 6.54% 7.50%
2,825,000 General Elec. Cap. Corp. 6.500% 11/01/06 95.635 2,701,689 6.80% 5.30%
2,000,000 GMAC 6.375% 10/15/04 96.346 1,926,920 6.62% 7.50%
1,000,000 IBM Corp. 5.625% 4/12/04 94.478 944,780 5.95% 7.00%
1,000,000 J.P. Morgan 6.875% 1/15/07 96.602 966,020 7.12% 5.30%
INDUSTRIALS
$ 3,200,000 Kimberly Clark Corp. 6.250% 7/15/18 $ 88.281 $ 2,824,992 7.08% 7.40%
1,280,000 Kimberly Clark Corp. 6.375% 1/01/28 84.927 1,087,066 7.51% 7.50%
2,400,000 McDonald's Corp. 6.500% 8/01/07 95.713 2,297,112 6.79% 5.70%
1,000,000 McDonald's Corp. 7.375% 7/15/33 91.628 916,280 8.05% 8.30%
1,430,000 Wal-Mart Stores 6.150% 8/10/01 99.141 1,417,716 6.20% 6.70%
3,500,000 Warner-Lambert Co. 5.750% 1/15/03 96.170 3,365,950 5.98% 6.90%
2,000,000 TJX Companies Inc 7.450% 12/15/09 97.400 1,948,000 7.65% 7.80%
UTILITIES
$ 3,140,000 AT&T Corp. 6.500% 3/15/29 $ 85.669 $ 2,690,007 7.59% 7.70%
1,000,000 Duke Energy Corp. 6.000% 12/01/28 79.026 790,260 7.59% 7.90%
1,680,000 Lucent Technologies Inc. 5.500% 11/15/08 88.533 1,487,354 6.21% 6.70%
1,100,000 Lucent Technologies Inc. 6.450% 3/15/29 87.049 957,539 7.41% 7.50%
1,500,000 New York Telecom. 6.000% 4/15/08 90.903 1,363,545 6.60% 6.20%
1,000,000 SBC Communications Inc. 6.625% 11/01/09 93.963 939,630 7.05% 7.40%
955,000 Tennessee Valley Authority 6.000% 3/15/13 89.641 856,072 6.69% 7.20%
----------
Total Corporate Bonds (identified cost, $40,596,850) - 42.8% $37,383,932
GOVERNMENT INTERESTS
U.S. GOVERNMENT AGENCIES
$ 530,000 Federal Home Loan Mortgage 5.800% 9/02/08 $ 91.922 $ 487,187 6.31% 7.00%
1,250,000 Federal Home Loan Mortgage 5.540% 10/27/08 88.828 1,110,350 6.24% 7.50%
1,500,000 Federal Home Loan Mortgage 5.125% 1/21/09 97.141 1,457,115 5.28% 6.50%
40,000 Federal Home Loan Mortgage 5.750% 4/15/08 92.047 36,819 6.25% 7.00%
1,000,000 Federal Home Loan Mortgage 4.750% 12/14/01 96.828 968,280 4.91% 6.50%
1,000,000 Federal National Mtg. Assn. 6.170% 1/15/08 92.797 927,970 6.65% 7.40%
1,000,000 Federal National Mtg. Assn. 6.000% 5/15/08 93.625 936,250 6.41% 7.00%
1,500,000 Federal National Mtg. Assn. 6.560% 11/26/07 94.734 1,421,010 6.92% 7.50%
2,000,000 Federal National Mtg. Assn. 6.400% 11/9/04 96.781 1,935,620 6.61% 7.40%
600,000 Federal National Mtg. Assn. 6.250% 5/15/29 89.000 534,000 7.02% 7.10%
1,250,000 Federal National Mtg. Assn. 5.625% 3/15/01 99.078 $ 1,238,475 5.68% 6.40%
1,400,000 Federal National Mtg. Assn. 4.750% 11/14/03 92.844 1,299,816 5.12% 6.80%
440,000 Federal National Mtg. Assn. 5.740% 1/21/09 89.094 392,014 6.44% 7.30%
1,925,000 Federal National Mtg. Assn. 5.350% 10/27/03 94.922 1,827,249 5.64% 6.80%
471,938 GNMA Pool # 488924 6.500% 11/15/28 93.843 442,881 6.93% 7.44%
982,544 GNMA Pool # 422506 6.500% 3/15/26 94.500 928,505 6.88% 7.49%
514,847 GNMA Pool # 436214 6.500% 2/15/13 97.062 499,722 6.70% 7.15%
1,365,536 GNMA Pool # 460726 6.500% 12/15/27 94.094 1,284,888 6.91% 7.46%
933,271 GNMA Pool # 478072 6.500% 5/15/28 93.843 875,810 6.93% 7.45%
901,126 GNMA Pool # 427199 7.000% 12/15/27 96.656 870,993 7.24% 7.61%
2,955,700 GNMA Pool # 374892 7.000% 2/15/24 97.187 2,872,557 7.20% 7.66%
672,777 GNMA Pool # 002671 6.000% 11/20/28 90.594 609,496 6.62% 7.45%
599,547 GNMA Pool # 376400 6.500% 2/15/24 94.812 568,443 6.86% 7.53%
1,014,743 GNMA Pool # 379982 7.000% 2/15/24 97.187 986,198 7.20% 7.66%
386,880 GNMA Pool # 442996 6.000% 6/15/13 94.781 366,689 6.33% 7.15%
1,617,171 GNMA Pool # 458672 6.500% 1/15/28 93.843 1,517,602 6.93% 7.46%
869,245 GNMA Pool # 463839 6.000% 5/15/13 94.781 823,879 6.33% 7.15%
U.S. TREASURIES
$ 1,000,000 U.S. Treasury Bond 5.500% 8/15/28 $ 85.281 $ 852,810 6.45% 6.70%
1,500,000 U.S. Treasury Bond 8.250% 5/15/05 100.641 1,509,615 8.20% 8.10%
1,700,000 U.S. Treasury Bond 6.000% 2/15/26 91.484 1,555,228 6.56% 6.70%
4,925,000 U.S. Treasury Bond 7.250% 5/15/16 104.531 5,148,152 6.94% 6.80%
1,000,000 U.S. Treasury Note 5.375% 1/31/00 99.984 999,840 5.38% 4.90%
1,900,000 U.S. Treasury Note 5.875% 6/30/00 100.094 1,901,786 5.87% 5.60%
3,500,000 U.S. Treasury Note 5.750% 10/31/00 99.719 3,490,165 5.77% 6.10%
3,000,000 U.S. Treasury Note 7.750% 2/15/01 101.625 3,048,750 7.63% 6.10%
1,700,000 U.S. Treasury Note 7.500% 2/15/05 104.297 1,773,047 7.19% 6.50%
----------
Total Government Interests (identified cost, $49,168,837) -54.4% $47,499,211
-----------
Total Investments (identified cost, $89,765,688) - 97.2% $84,883,143
Other Assets, Less Liabilities - 2.8% 2,453,062
----------
Net Assets -- 100.0% $87,336,205
============
Average Maturity - 9.8 Years
(1) Unaudited.
</TABLE>
<PAGE>
SELECTED BLUE CHIP EQUITIES PORTFOLIO (SBCP)
- -------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS - December 31, 1999
Shares Value
EQUITY INTERESTS -- 99.2%
APPAREL -- 2.8%
Jones Apparel Group Inc............. 35,000 $ 949,375
Liz Claiborne....................... 31,400 1,181,425
------------
$ 2,130,800
------------
AUTOMOTIVE -- 1.3%
Dana Corporation.................... 31,700 $ 949,019
-----------
CHEMICALS -- 1.8%
Rohm & Haas Co...................... 33,770 $ 1,374,017
-----------
CONSTRUCTION -- 3.3%
Southdown, Inc...................... 16,200 $ 836,325
Vulcan Materials Co................. 18,300 730,856
Toll Brothers....................... 50,500 940,563
-----------
$ 2,507,744
-----------
DIVERSIFIED -- 1.0%
Crane Co............................ 39,850 $ 792,019
-----------
DRUGS, COSMETICS & HEALTHCARE -- 10.5%
Alberto Culver Co. Class A.......... 74,300 $ 1,616,025
Biogen, Inc......................... 28,700 2,425,150
Bard, C.R........................... 35,600 1,886,800
Watson Pharmaceutical, Inc.......... 56,500 2,023,406
-----------
$ 7,951.381
-----------
ELECTRONICS -- 27.5%
Adobe Systems Inc................... 22,900 $ 1,540,025
Altera Corp......................... 10,500 520,406
American Power Conversion........... 35,000 923,125
Analog Devices...................... 20,500 1,906,500
Autodesk Inc........................ 36,300 1,225,125
Citrix Systems Inc.................. 5,700 701,100
Dallas Semiconductor Corp........... 24,100 1,552,944
Electronic Arts..................... 3,700 310,800
Gateway Inc......................... 22,900 1,650,231
Keane Inc........................... 64,300 2,041,524
Legato Systems Inc.................. 7,500 516,094
Linear Technology Corp.............. 14,100 1,009,031
Maxim Intergrated Products.......... 10,000 471,875
Qualcom Inc......................... 4,800 845,400
Solectron Corp...................... 10,800 1,027,350
Synopsys Inc........................ 27,300 1,822,275
Veritas Software Corp............... 11,850 1,696,031
Vitesse Semiconductor Corp.......... 9,200 482,425
Xilinx Inc.......................... 11,800 536,532
-----------
$ 20,778,793
-----------
FINANCIAL -- 10.9%
AFLAC Corp.......................... 13,000 $ 613,438
AMBAC Financial Group Inc........... 6,700 349,656
BB&T Corp........................... 27,240 745,695
Commerce Bancshares Inc............. 25,001 846,894
Compass Bancshares.................. 43,175 963,342
First Security CP................... 38,150 974,019
Edwards (A.G.) Inc.................. 12,430 398,537
Jefferson Pilot Corp................ 14,400 982,800
Marshall & Ilsley Corp.............. 15,600 979,875
MBIA Inc............................ 7,500 396,094
Southtrust Corp..................... 25,150 950,984
-----------
$ 8,201,334
-----------
FOOD -- 4.0%
Hormel Foods Corp................... 35,200 $ 1,430,000
Universal Foods Corp................ 79,000 1,609,625
-----------
$ 3,039,625
-----------
MACHINERY & EQUIPMENT -- 4.9%
Deere & Co.......................... 19,700 $ 854,488
Ingersoll Rand Co................... 16,400 903,025
Lexmark Int'l. Group Inc............ 21,300 1,927,650
-----------
$ 3,685,163
-----------
METAL PRODUCERS -- 1.9%
Alcoa Inc........................... 17,200 $ 1,427,600
-----------
METAL PRODUCTS MANUFACTURERS -- 0.8%
Trinity Industries.................. 22,200 $ 631,313
-----------
<PAGE>
OIL, GAS, COAL & RELATED SERVICES -- 6.7%
Ensco International Inc............. 69,700 $ 1,594,388
Halliburton Company................. 37,300 1,501,325
Nabors Inds., Inc................... 62,900 1,945,968
-----------
$ 5,041,681
-----------
RECREATION -- 4.0%
Brinker International Inc........... 54,900 $ 1,317,600
Harley-Davidson..................... 10,300 659,844
Wendys International Inc............ 48,900 1,008,562
-----------
$ 2,986,006
-----------
RETAILERS -- 3.1%
Best Buy Company Inc................ 10,600 $ 531,988
Claire's Stores Inc................. 36,200 809,974
Office Depot........................ 19,700 215,469
Ross Stores Inc..................... 44,400 796,425
-----------
$ 2,353,856
-----------
TRANSPORTATION -- 0.8%
USFreightways Corp.................. 12,250 $ 586,469
-----------
UTILITIES -- 8.1%
Alltel Corporation.................. 11,319 $ 935,940
Duke Energy Corp.................... 25,730 1,289,716
Nisource Inc........................ 73,800 1,319,175
Questar Corp........................ 77,700 1,165,500
Teco Energy......................... 75,800 1,407,038
-----------
$ 6,117,369
-----------
MISCELLANEOUS -- 5.8%
Avery-Dennison Corp................. 12,300 $ 896,363
Cintas Corp......................... 17,400 924,375
Hon Inds. Inc....................... 37,700 827,044
Leggett & Platt Inc................. 45,220 969,403
Sysco Corp.......................... 18,800 743,775
-----------
$ 4,360,960
-----------
TOTAL EQUITY INTERESTS -- 99.2%
(identified cost, $59,242,450) $ 74,915,149
-----------
OTHER ASSETS,
LESS LIABILITIES -- 0.8% 567,393
-----------
NET ASSETS -- 100% $ 75,482,542
============
See notes to financial statements
<PAGE>
INTERNATIONAL BLUE CHIP EQUITIES PORTFOLIO (IBCP)
- -------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS - December 31, 1999
Shares Value
EQUITY INTERESTS -- 102.2%
BELGIUM -- 0.2%
Fortis B............................ 11,000 $ 397,015
-----------
BRAZIL -- 1.5%
Embratel Partipacoes................ 17,000 $ 463,250
Petroleo Brasileiro................. 55,000 1,410,640
Telesp Participacoes SA ADR......... 31,500 769,781
-----------
$ 2,643,671
-----------
CANADA -- 3.9%
BCE Inc Com......................... 25,000 $ 2,254,688
Bombardier Inc. Class B............. 42,000 858,043
Investors Group Inc................. 46,000 652,919
Nortel Network Corp................. 29,997 3,014,531
-----------
$ 6,780,181
-----------
DENMARK -- 0.9%
Novo Nordisk A/S-B.................. 3,800 $ 503,931
Tele Danmark........................ 15,000 1,114,359
-----------
$ 1,618,290
-----------
FINLAND -- 2.8%
Nokia Oy B Shares................... 19,000 $ 3,445,992
Tietoenator Corporation............. 20,800 1,299,401
-----------
$ 4,745,393
-----------
FRANCE -- 14.4%
Alcatel............................. 8,000 $ 1,837,862
Altran Technologies SA.............. 2,200 1,330,032
Atos Ord............................ 2,300 381,457
Aventis............................. 7,500 436,039
Axa Company FRF60................... 11,000 1,533,970
Carrefour Supermarche............... 6,000 1,106,949
Compagnie de Saint Goban............ 4,600 865,347
France Telecom SA................... 17,000 2,249,064
L'oreal............................. 1,000 802,553
Peugeot SA.......................... 4,000 908,452
Pinault-Primtemps-Redoute SA........ 4,400 1,161,561
Rexel............................... 4,400 392,359
Sanofi-Synthelabo*.................. 16,000 666,467
Societe Generale-A.................. 7,500 1,745,667
St Microelectronics NV.............. 25,000 3,849,035
Total Fina SA*...................... 12,500 1,668,838
TV Francaise........................ 2,200 1,152,694
Vivendi............................. 30,000 2,709,940
-----------
$ 24,798,286
-----------
GERMANY -- 5.8%
Allianz AG Holding Ger Reg.......... 4,800 $ 1,615,384
DaimlerChrysler..................... 11,000 860,750
Deutsche Bank AG.................... 10,000 843,764
Deutsche Telekom AG................. 15,500 1,108,864
Heidelberger Zement AG.............. 3,000 234,267
Mannesmann AG....................... 8,800 2,145,785
Marschollek Lauten.................. 1,200 315,580
Muenchene Rueckversicherungs........ 1,600 410,295
Siemans Registered.................. 19,000 2,431,339
-----------
$ 9,966,028
-----------
HONG KONG -- 3.6%
China Telecom....................... 390,000 $ 2,438,127
Hutchison Whampoa................... 119,000 1,729,740
Johnson Electric Holdings........... 200,000 1,283,766
Television Broadcasts Ltd........... 110,000 749,936
-----------
$ 6,201,569
-----------
IRELAND -- 1.5%
Bank of Ireland..................... 134,000 $ 1,066,645
Elan Corp PLC....................... 50,000 1,475,000
-----------
$ 2,541,645
-----------
ITALY -- 3.4%
Alleanza Assicurazioni SPA.......... 83,000 $ 1,018,623
Banca Intesa SPA.................... 69,000 280,044
Mediaset SPA*....................... 74,000 1,143,937
Telecom Italia Mobile............... 306,000 3,410,389
-----------
$ 5,852,993
-----------
JAPAN -- 28.8%
Acom Co. Ltd........................ 12,600 $ 1,233,144
The Bank of Tokyo Mitsubishi........ 63,000 877,122
Bellsystem24 Inc.................... 2,000 2,190,066
Canon Inc........................... 50,000 1,984,748
Fanuc Co............................ 18,000 2,289,597
Honda Motor Co. Ltd................. 29,000 1,077,434
Japan Telecom Co. Ltd............... 450 1,803,872
Matsushita Communication Ind........ 17,000 4,487,683
Matsushita Elec. Ind................ 50,000 1,383,457
Meitec.............................. 19,000 603,735
Murata Mfg. Co. Ltd................. 19,000 4,458,350
Nintendo Corp. Ltd.................. 5,700 937,925
NTT Data Corporation................ 1,000 2,297,614
NTT Mobile Communications........... 1,000 3,842,393
Promise Co. Ltd..................... 16,000 813,453
Ricoh Corp. Ltd..................... 40,000 753,226
<PAGE>
JAPAN - continued
Rohm Company........................ 6,300 $ 2,587,016
The Sanwa Bank Ltd.................. 50,000 607,646
Seven Eleven Japan Ltd.............. 12,000 1,900,665
Softbank Corp....................... 1,900 1,816,777
Sony Corp........................... 10,000 2,962,456
Taiyo Yuden Co., Ltd................ 64,000 3,791,944
Takeda Chem. Industries Ltd......... 27,000 1,333,105
Takefuji Corporation................ 15,000 1,875,733
Toyota Motor Co..................... 38,000 1,839,069
-----------
$ 49,748,230
-----------
MEXICO -- 1.9%
Cemex S.A........................... 161,000 $ 898,684
Grupo Televisa SA-Ser CPO........... 13,000 438,125
Telefonos de Mexico................. 340,000 1,897,841
-----------
$ 3,234,650
-----------
NETHERLANDS -- 6.7%
Abn Amro Holdings................... 37,000 $ 924,574
Aegon NV............................ 16,000 1,546,061
ASM Lithography Holding NV.......... 16,800 1,911,000
Equant NV*.......................... 8,100 919,808
Fortis Amev NV...................... 21,500 774,467
ING Groep N.V....................... 32,000 1,932,658
Koninklijke NV...................... 7,500 732,273
Koninklijke Ahold NV................ 23,000 681,107
Koninklijke Philips Electronics..... 9,500 1,292,247
Royal Dutch Petroleum Co............ 15,000 919,687
-----------
$ 11,633,882
-----------
PORTUGAL-- 0.7%
Portugal Telecom S.A. ADR........... 105,000 $ 1,141,875
-----------
SINGAPORE -- 2.5%
City Developments................... 100,000 $ 584,883
Datacraft Asia Ltd.................. 157,000 1,303,100
Natsteel Electronics Ltd............ 133,000 702,100
United Overseas Bank-Foreign........ 98,168 865,669
Venture Manufacturing............... 76,000 870,785
-----------
$ 4,326,537
-----------
SOUTH AFRICA -- 0.6%
Dimension Data Holdings Ltd......... 156,689 $ 981,850
-----------
SPAIN -- 3.5%
Banco Bilbao Vizcaya SA............. 58,000 $ 826,353
Banco Santander Central Hisp........ 75,500 855,070
Ferrovial........................... 40,000 580,378
Repsol S.A.......................... 96,970 2,249,214
Telefonica.......................... 60,033 1,500,133
-----------
$ 6,011,148
-----------
SWEDEN -- 2.8%
Ericsson AB B Free.................. 49,500 $ 3,183,597
Europolitan Holdings AB............. 20,000 352,734
Skandia Forsakrings AB Free......... 44,000 1,329,571
-----------
$ 4,865,902
-----------
SWITZERLAND -- 3.5%
Cie Financ Fichemont-UTS "A"........ 630 1,503,108
Roche Holding AG - Genusschein...... 620 735,732
Schw. Rueckversicherungs-Reg........ 720 1,478,697
Zuerich Allied AG................... 3,900 2,223,394
-----------
$ 5,940,931
-----------
UNITED KINGDOM -- 13.2%
Allied Zurich PLC................... 179,000 $ 2,105,152
Amvesco PLC......................... 145,000 1,685,225
Bowthorpe Holdings PLC.............. 33,000 579,562
British Telecommunications PLC...... 100,000 2,391,841
BP Amoco PLC........................ 325,000 3,273,924
Cable & Wireless PLC................ 21,500 1,138,156
Computer Management Group........... 38,000 2,792,136
Glaxo Wellcome PLC.................. 50,000 1,417,268
HSBC Holdings PLC................... 50,000 706,213
Kingfisher PLC...................... 85,417 944,915
Lloyds TSB Group PLC................ 63,000 782,031
Sema Group PLC...................... 63,000 1,132,028
Smithkline Beecham PLC.............. 57,000 725,954
Vodafone Airtouch PLC............... 500,000 2,461,901
Wolseley PLC........................ 95,000 664,001
-----------
$ 22,800,307
-----------
TOTAL EQUITY INTERESTS - 102.2%
(identified cost, $121,697,318) $176,230,383
-----------
OTHER ASSETS,
LESS LIABILITIES -- -2.2% (3,759,194)
-----------
NET ASSETS -- 100% $172,471,189
============
* Non-income-producing security.
ADR: American Depository Receipts
<PAGE>
Wright U.S. Treasury Money Market Fund (WTMM)
- -------------------------------------------------------------------------------
Portfolio of Investments - December 31, 1999
Face Interest Maturity
Amount Issuer Rate Date Value
- -------------------------------------------------------------------------------
$2,000,000 U.S. Treasury Bills 4.800% 1/06/00 $ 1,998,666
2,000,000 U.S. Treasury Bills 4.800% 1/06/00 1,998,667
3,825,000 U.S. Treasury Bills 4.770% 1/13/00 3,818,918
400,000 U.S. Treasury Bills 4.550% 1/13/00 399,394
900,000 U.S. Treasury Bills 5.080% 1/13/00 898,476
3,000,000 U.S. Treasury Bills 5.200% 1/13/00 2,994,800
1,250,000 U.S. Treasury Bills 4.550% 1/20/00 1,246,999
1,300,000 U.S. Treasury Bills 4.950% 1/20/00 1,296,604
2,500,000 U.S. Treasury Bills 5.060% 2/10/00 2,485,944
2,000,000 U.S. Treasury Bills 5.100% 2/10/00 1,988,667
100,000 U.S. Treasury Bills 4.890% 2/17/00 99,361
1,500,000 U.S. Treasury Bills 5.100% 2/17/00 1,490,012
1,000,000 U.S. Treasury Bills 5.050% 2/17/00 993,407
900,000 U.S. Treasury Bills 5.000% 2/17/00 894,125
1,600,000 U.S. Treasury Bills 5.040% 2/24/00 1,587,904
800,000 U.S. Treasury Bills 5.050% 2/24/00 793,940
2,000,000 U.S. Treasury Bills 5.020% 2/24/00 1,984,940
2,100,000 U.S. Treasury Bills 5.100% 3/02/00 2,081,852
800,000 U.S. Treasury Bills 5.070% 3/02/00 793,127
500,000 U.S. Treasury Bills 5.110% 3/02/00 495,670
900,000 U.S. Treasury Bills 5.210% 3/23/00 889,319
2,000,000 U.S. Treasury Bills 5.040% 3/23/00 1,977,040
2,000,000 U.S. Treasury Bills 5.290% 3/23/00 1,975,901
500,000 U.S. Treasury Bills 5.270% 3/23/00 493,998
2,200,000 U.S. Treasury Bills 5.000% 4/13/00 2,168,528
2,800,000 U.S. Treasury Bills 5.225% 4/20/00 2,755,297
2,600,000 U.S. Treasury Bills 5.450% 5/11/00 2,548,437
400,000 U.S. Treasury Bills 5.450% 5/11/00 392,068
1,200,000 U.S. Treasury Bills 5.100% 5/25/00 1,175,350
900,000 U.S. Treasury Bills 5.190% 5/25/00 881,186
1,000,000 U.S. Treasury Bills 5.260% 5/25/00 978,814
2,500,000 U.S. Treasury Bills 5.400% 6/08/00 2,440,375
$ 650,000 U.S. Treasury Bonds 5.375% 7/31/00 $ 664,556
350,000 U.S. Treasury Bonds 5.375% 7/31/00 357,800
2,600,000 U.S. Treasury Bonds 5.375% 7/31/00 2,658,495
2,500,000 U.S. Treasury Notes 5.375% 6/30/00 2,593,488
500,000 U.S. Treasury Notes 5.375% 6/30/00 499,960
500,000 U.S. Treasury Notes 5.375% 6/30/00 499,937
2,000,000 U.S. Treasury Notes 5.375% 1/31/00 2,045,223
2,000,000 U.S. Treasury Notes 5.500% 5/31/00 2,009,620
1,000,000 U.S. Treasury Notes 5.500% 5/31/00 1,004,810
750,000 U.S. Treasury Notes 5.125% 8/31/00 761,755
----------
TOTAL INVESTMENTS
AT AMORTIZED COST -- 99.3% $ 62,113,430
Other Assets, less Liabilities -- 0.7% 413,745
----------
Net Assets -- 100.0% $ 62,527,175
===========
See notes to financial statements
<PAGE>
U.S. GOVERNMENT NEAR TERM PORTFOLIO (NTBP)
- -------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS - December 31, 1999
<TABLE>
<CAPTION>
Face Coupon Maturity Market Current Yield To
Amount Description Rate Date Price Value Yield(1) Maturity(1)
- ---------------------------------------------------------------------------------------------------------------------------------
GOVERNMENT INTERESTS
<S> <C> <C> <C> <C> <C> <C> <C>
$ 1,500,000 FNLB 5.430% 6/08/01 $ 98.578 $ 1,478,670 5.49% 6.50%
1,500,000 Federal Home Loan Bank 4.860% 10/05/01 97.016 1,455,240 4.99% 6.50%
1,700,000 Federal Home Loan Bank 5.125% 2/26/02 97.141 1,651,397 5.27% 6.50%
2,000,000 Federal Home Loan Bank 6.030% 11/26/02 98.281 1,965,620 6.10% 6.70%
1,500,000 Federal Home Loan Bank 5.675% 8/18/03 96.359 1,445,385 5.84% 6.80%
750,000 Federal Home Loan Bank 5.535% 11/10/03 95.391 715,433 5.77% 6.80%
1,000,000 FHLMC 6.000% 1/12/04 96.437 964,370 6.19% 6.90%
1,000,000 FNMA 5.310% 9/15/00 99.359 993,590 5.34% 6.50%
1,500,000 FNMA 5.250% 11/19/01 97.672 1,465,080 5.36% 6.50%
1,925,000 FNMA 5.900% 7/09/03 96.406 1,855,816 6.08% 7.00%
1,300,000 FNMA 6.170% 8/05/03 97.047 1,261,611 6.33% 7.00%
1,500,000 FNMA 5.940% 8/18/03 96.484 1,447,260 6.13% 7.10%
1,500,000 FNMA 5.860% 8/20/03 96.281 1,444,215 6.05% 7.00%
1,500,000 FNMA 5.910% 8/25/03 96.937 1,454,055 6.07% 7.00%
1,500,000 FNMA 5.350% 10/27/03 94.922 1,423,830 5.60% 6.80%
1,475,000 FNMA 5.860% 1/20/04 96.031 1,416,457 6.06% 7.30%
770,000 FNMA 5.875% 4/23/04 95.469 735,111 6.11% 7.40%
5,000,000 U.S. Treasury Note 7.125% 2/29/00 100.281 5,014,050 7.10% 5.10%
5,800,000 U.S. Treasury Note 6.250% 5/31/00 100.156 5,809,048 6.23% 5.70%
6,800,000 U.S. Treasury Note 6.000% 8/15/00 100.016 6,801,088 5.99% 5.90%
1,800,000 U.S. Treasury Note 5.625% 11/30/00 99.578 1,792,404 5.64% 6.10%
9,150,000 U.S. Treasury Note 7.500% 11/15/01 102.172 9,348,738 7.31% 6.30%
-----------
Total Investments (identified cost, $52,649,375) -- 98.1% $51,938,468
Other Assets, Less Liabilities -- 1.9% 1,024,564
-----------
Net Assets -- 100.0% $52,963,032
============
Average Maturity -- 1.9 Years(1)
(1) Unaudited.
</TABLE>
See notes to financial statements
<PAGE>
U.S. TREASURY PORTFOLIO (USTBP)
- -------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS - December 31, 1999
<TABLE>
<CAPTION>
Face Coupon Maturity Market Current Yield To
Amount Description Rate Date Price Value Yield(1) Maturity(1)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 450,000 U. S. Treasury Notes 5.375% 1/31/00 $ 99.984 $ 449,928 5.38% 4.90%
3,400,000 U. S. Treasury Notes 6.250% 5/31/00 100.156 3,405,304 6.24% 5.70%
2,800,000 U. S. Treasury Notes 5.750% 10/31/00 99.719 2,792,132 5.77% 6.10%
4,450,000 U. S. Treasury Notes 5.250% 1/31/01 99.094 4,409,683 5.30% 6.10%
2,200,000 U. S. Treasury Notes 5.000% 2/28/01 98.719 2,171,818 5.06% 6.10%
950,000 U. S. Treasury Notes 6.500% 5/15/05 100.031 950,295 6.50% 6.50%
2,500,000 U. S. Treasury Notes 6.500% 8/15/05 100.000 2,500,000 6.50% 6.50%
450,000 U. S. Treasury Notes 6.500% 10/15/06 99.734 448,803 6.52% 6.50%
2,500,000 U. S. Treasury Notes 6.125% 8/15/07 97.500 2,437,500 6.28% 6.50%
600,000 U.S Treasury Bonds 11.625% 11/15/04 120.781 724,686 9.62% 6.60%
1,000,000 U.S Treasury Bonds 10.000% 5/15/10 114.656 1,146,560 8.72% 7.90%
1,300,000 U.S Treasury Bonds 14.000% 11/15/11 139.500 1,813,500 10.04% 8.60%
2,900,000 U.S Treasury Bonds 7.250% 5/15/16 104.531 3,031,399 6.94% 6.80%
1,500,000 U.S Treasury Bonds 6.250% 8/15/23 94.281 1,414,215 6.63% 6.70%
2,725,000 U.S Treasury Bonds 6.000% 2/15/26 91.484 2,492,939 6.56% 6.70%
3,450,000 U.S Treasury Bonds 5.500% 8/15/28 85.281 2,942,194 6.45% 6.70%
------------
Total Investments (identified cost, $34,051,904) - 98.2% $33,130,956
Other Assets, less Liabilities - 1.8% 622,199
-----------
Net Assets - 100.0% $33,753,155
============
Average Maturity - 9.8 Years1
(1) Unaudited.
</TABLE>
See notes to financial statements
<PAGE>
CURRENT INCOME PORTFOLIO (CIFP)
- -------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS - December 31, 1999
<TABLE>
<CAPTION>
Face Coupon Maturity Market Current
Amount Description Rate Date Price Value Yield(1)
- ---------------------------------------------------------------------------------------------------------------------------------
GOVERNMENT INTERESTS - 98.8%
<S> <C> <C> <C> <C> <C> <C>
$ 1,100,000 GNMA Pool # 000024 8.500% 12/20/29 $102.531 $ 1,127,841 8.29%
1,031 GNMA Pool # 000434 8.000% 4/15/01 100.605 1,038 7.95%
195 GNMA Pool # 000473 7.500% 4/15/01 100.393 196 7.47%
694,231 GNMA Pool # 000545 7.500% 12/20/22 98.657 684,908 7.60%
1,087,420 GNMA Pool # 000723 7.500% 1/20/23 98.657 1,072,816 7.60%
899,485 GNMA Pool # 001268 8.000% 7/20/23 100.813 906,798 7.94%
755 GNMA Pool # 001408 6.500% 3/15/02 98.743 746 6.58%
43,755 GNMA Pool # 001596 9.000% 4/20/21 104.875 45,889 8.58%
344,158 GNMA Pool # 001788 7.000% 7/20/24 96.313 331,470 7.27%
445,008 GNMA Pool # 002218 7.500% 5/20/26 98.500 438,333 7.61%
1,341,427 GNMA Pool # 002268 7.500% 8/20/26 98.500 1,321,306 7.61%
961,110 GNMA Pool # 002671 6.000% 11/20/28 90.594 870,709 6.62%
2,593,678 GNMA Pool # 002687 6.000% 12/20/28 90.594 2,349,717 6.62%
835 GNMA Pool # 003026 8.000% 1/15/04 101.173 845 7.91%
585 GNMA Pool # 003331 8.000% 1/15/04 101.173 592 7.91%
1,891 GNMA Pool # 004183 8.000% 7/15/04 101.589 1,921 7.87%
910 GNMA Pool # 004433 9.000% 11/15/04 103.37 941 8.71%
2,905 GNMA Pool # 005466 8.500% 3/15/05 102.265 2,971 8.31%
377 GNMA Pool # 005561 8.500% 4/15/05 101.956 385 8.34%
1,266 GNMA Pool # 005687 7.250% 2/15/05 99.663 1,262 7.27%
1,374 GNMA Pool # 005910 7.250% 2/15/05 99.663 1,370 7.27%
9,433 GNMA Pool # 007003 8.000% 7/15/05 101.808 9,604 7.86%
1,003 GNMA Pool # 007319 6.500% 10/15/04 98.101 985 6.63%
3,844 GNMA Pool # 009106 8.250% 5/15/06 102.497 3,941 8.05%
5,180 GNMA Pool # 009889 7.250% 2/15/06 99.652 5,162 7.28%
798 GNMA Pool # 011191 7.250% 4/15/06 99.652 796 7.28%
3,196 GNMA Pool # 012526 8.000% 11/15/06 102.001 3,260 7.84%
77,341 GNMA Pool # 151443 10.000% 3/15/16 107.438 83,094 9.31%
18,735 GNMA Pool # 153564 10.000% 4/15/16 107.438 20,129 9.31%
78,323 GNMA Pool # 172558 9.500% 8/15/16 106.187 83,170 8.95%
129,369 GNMA Pool # 176992 8.000% 11/15/16 101.856 131,770 7.85%
23,046 GNMA Pool # 177784 8.000% 10/15/16 101.856 23,474 7.85%
34,646 GNMA Pool # 180033 9.500% 9/15/16 106.187 36,790 8.95%
4,788 GNMA Pool # 188060 9.500% 10/15/16 106.187 5,085 8.95%
1,630 GNMA Pool # 190959 8.500% 2/15/17 103.593 1,689 8.21%
75,905 GNMA Pool # 192357 8.000% 4/15/17 101.812 77,281 7.86%
234,251 GNMA Pool # 194057 8.500% 4/15/17 103.593 242,668 8.21%
58,577 GNMA Pool # 194287 9.500% 3/15/17 106.174 62,194 8.95%
360,956 GNMA Pool # 194926 8.500% 2/15/17 103.593 373,925 8.21%
8,472 GNMA Pool # 196063 8.500% 3/15/17 103.593 8,777 8.21%
199,319 GNMA Pool # 203369 8.000% 12/15/16 101.856 203,019 7.85%
15,202 GNMA Pool # 206740 10.000% 10/15/17 107.756 16,381 9.28%
52,397 GNMA Pool # 206762 9.000% 4/15/21 105.062 55,050 8.57%
58,919 GNMA Pool # 207019 8.000% 3/15/17 101.812 59,987 7.86%
9,263 GNMA Pool # 208076 8.000% 4/15/17 101.812 9,432 7.86%
5,307 GNMA Pool # 210520 10.500% 8/15/17 108.909 5,780 9.64%
10,461 GNMA Pool # 210618 9.500% 4/15/17 106.174 11,107 8.95%
36,294 GNMA Pool # 211013 9.000% 1/15/20 105.187 38,177 8.56%
51,628 GNMA Pool # 211231 8.500% 5/15/17 103.593 53,483 8.21%
39,652 GNMA Pool # 212601 8.500% 6/15/17 103.593 41,077 8.21%
7,837 GNMA Pool # 218420 8.500% 11/15/21 103.218 8,089 8.23%
159,633 GNMA Pool # 219335 8.000% 5/15/17 101.812 162,526 7.86%
<PAGE>
$ 157,436 GNMA Pool # 220703 8.000% 5/15/17 $101.812 $ 160,289 7.86%
15,010 GNMA Pool # 220917 8.500% 4/15/17 103.593 15,550 8.21%
246,957 GNMA Pool # 222112 8.000% 1/15/22 101.375 250,353 7.89%
30,822 GNMA Pool # 223126 10.000% 8/15/17 107.756 33,213 9.28%
50,512 GNMA Pool # 223133 9.500% 7/15/17 106.174 53,631 8.95%
12,396 GNMA Pool # 223348 10.000% 8/15/18 107.836 13,368 9.27%
4,188 GNMA Pool # 223588 10.000% 12/15/18 107.836 4,517 9.27%
4,848 GNMA Pool # 224078 10.000% 7/15/18 107.836 5,228 9.27%
42,031 GNMA Pool # 228308 10.000% 1/15/19 107.756 45,292 9.28%
20,518 GNMA Pool # 228483 9.500% 9/15/19 106.149 21,780 8.95%
23,485 GNMA Pool # 230223 9.500% 4/15/18 106.162 24,933 8.95%
6,442 GNMA Pool # 235000 10.000% 1/15/18 107.559 6,929 9.30%
36,295 GNMA Pool # 245580 9.500% 7/15/18 106.162 38,532 8.95%
8,467 GNMA Pool # 247473 10.000% 9/15/18 106.249 8,996 9.41%
64,165 GNMA Pool # 247681 9.000% 11/15/19 105.312 67,574 8.55%
20,752 GNMA Pool # 247872 10.000% 9/15/18 107.836 22,379 9.27%
20,237 GNMA Pool # 250412 8.000% 3/15/18 101.711 20,584 7.87%
29,783 GNMA Pool # 251241 9.500% 6/15/18 106.162 31,619 8.95%
31,538 GNMA Pool # 258911 9.500% 9/15/18 106.162 33,481 8.95%
25,383 GNMA Pool # 260999 9.500% 9/15/18 106.162 26,947 8.95%
17,347 GNMA Pool # 263439 10.000% 2/15/19 107.906 18,719 9.27%
30,953 GNMA Pool # 265267 9.500% 8/15/20 106.137 32,854 8.95%
15,768 GNMA Pool # 266983 10.000% 2/15/19 107.906 17,015 9.27%
7,124 GNMA Pool # 273690 9.500% 8/15/19 106.149 7,563 8.95%
22,875 GNMA Pool # 274489 9.500% 12/15/19 106.149 24,282 8.95%
19,197 GNMA Pool # 275456 9.500% 8/15/19 106.149 20,377 8.95%
21,384 GNMA Pool # 275538 9.500% 1/15/20 106.137 22,697 8.95%
18,690 GNMA Pool # 277205 9.000% 12/15/19 105.312 19,683 8.55%
65,871 GNMA Pool # 285744 9.000% 5/15/20 105.187 69,289 8.56%
43,845 GNMA Pool # 286556 9.000% 3/15/20 105.187 46,120 8.56%
1,019 GNMA Pool # 287999 9.000% 9/15/20 105.187 1,072 8.56%
67,320 GNMA Pool # 289092 9.000% 4/15/20 105.187 70,813 8.56%
2,971 GNMA Pool # 289949 8.500% 7/15/21 103.218 3,067 8.23%
6,257 GNMA Pool # 290700 9.000% 8/15/20 105.187 6,582 8.56%
7,989 GNMA Pool # 291933 9.500% 7/15/20 106.137 8,479 8.95%
5,505 GNMA Pool # 293666 8.500% 6/15/21 103.218 5,683 8.24%
1,027 GNMA Pool # 294209 9.000% 7/15/21 105.062 1,079 8.57%
6,723 GNMA Pool # 297345 8.500% 8/15/20 103.311 6,946 8.23%
18,628 GNMA Pool # 301017 8.500% 6/15/21 103.218 19,228 8.23%
38,378 GNMA Pool # 301366 8.500% 6/15/21 103.218 39,614 8.23%
70,883 GNMA Pool # 302713 9.000% 2/15/21 105.062 74,471 8.57%
5,776 GNMA Pool # 302723 8.500% 5/15/21 103.218 5,963 8.23%
23,352 GNMA Pool # 302781 8.500% 6/15/21 103.218 24,104 8.23%
48,814 GNMA Pool # 302933 8.500% 6/15/21 103.218 50,385 8.23%
88,250 GNMA Pool # 304512 8.500% 5/15/21 103.218 91,090 8.23%
131,676 GNMA Pool # 305091 9.000% 7/15/21 105.062 138,342 8.57%
4,050 GNMA Pool # 306669 8.000% 7/15/21 101.406 4,108 7.89%
70,511 GNMA Pool # 306693 8.500% 9/15/21 103.218 72,781 8.23%
73,530 GNMA Pool # 308792 9.000% 7/15/21 105.062 77,253 8.57%
42,438 GNMA Pool # 311087 8.500% 7/15/21 103.218 43,805 8.23%
13,582 GNMA Pool # 314222 8.500% 4/15/22 103.218 14,019 8.23%
69,933 GNMA Pool # 314581 9.500% 10/15/21 106.124 74,217 8.95%
183,351 GNMA Pool # 315187 8.000% 6/15/22 101.375 185,873 7.89%
<PAGE>
$ 379,417 GNMA Pool # 315388 8.000% 2/15/22 $101.375 $ 384,635 7.89%
262,004 GNMA Pool # 315754 8.000% 1/15/22 101.375 265,607 7.89%
274,975 GNMA Pool # 316240 8.000% 1/15/22 101.375 278,756 7.89%
106,634 GNMA Pool # 316615 8.500% 11/15/21 103.218 110,066 8.23%
120,438 GNMA Pool # 317069 8.500% 12/15/21 103.218 124,314 8.23%
146,125 GNMA Pool # 317351 8.000% 5/15/22 101.375 148,135 7.89%
191,959 GNMA Pool # 317358 8.000% 5/15/22 101.375 194,599 7.89%
160,308 GNMA Pool # 318776 8.000% 2/15/22 101.375 162,513 7.89%
2,714 GNMA Pool # 318793 8.500% 2/15/22 103.218 2,802 8.23%
282,502 GNMA Pool # 319441 8.500% 4/15/22 103.218 291,594 8.23%
94,750 GNMA Pool # 321806 8.000% 5/15/22 101.375 96,053 7.89%
306,406 GNMA Pool # 321807 8.000% 5/15/22 101.375 310,619 7.89%
181,444 GNMA Pool # 321976 8.500% 1/15/22 103.218 187,283 8.23%
388,089 GNMA Pool # 323226 8.000% 6/15/22 101.375 393,425 7.89%
265,532 GNMA Pool # 323929 8.000% 2/15/22 101.375 269,184 7.89%
235,187 GNMA Pool # 325165 8.000% 6/15/22 101.375 238,421 7.89%
50,814 GNMA Pool # 325651 8.000% 6/15/22 101.375 51,514 7.89%
311,901 GNMA Pool # 329540 7.500% 8/15/22 99.375 309,952 7.55%
677,470 GNMA Pool # 329982 7.500% 2/15/23 99.375 673,236 7.55%
123,923 GNMA Pool # 331361 8.000% 11/15/22 101.375 125,627 7.89%
292,061 GNMA Pool # 335746 8.000% 10/15/22 101.375 296,078 7.89%
269,502 GNMA Pool # 335950 8.000% 10/15/22 101.375 273,208 7.89%
1,623,093 GNMA Pool # 336488 7.000% 8/15/23 97.250 1,578,459 7.20%
1,455,895 GNMA Pool # 348103 7.000% 6/15/23 97.250 1,415,858 7.20%
573,912 GNMA Pool # 348213 6.500% 8/15/23 94.906 544,678 6.85%
964,060 GNMA Pool # 350372 7.000% 4/15/23 97.250 937,548 7.20%
962,139 GNMA Pool # 350659 7.500% 6/15/23 99.375 956,127 7.55%
1,021,963 GNMA Pool # 350938 6.500% 8/15/23 94.906 969,905 6.85%
1,167,856 GNMA Pool # 352001 6.500% 12/15/23 94.906 1,108,366 6.85%
874,286 GNMA Pool # 352110 7.000% 8/15/23 97.250 850,244 7.20%
478,163 GNMA Pool # 362628 7.000% 8/15/23 97.250 465,014 7.20%
617,740 GNMA Pool # 363429 7.000% 8/15/23 97.250 600,752 7.20%
745,418 GNMA Pool # 367414 6.000% 11/15/23 92.187 687,179 6.51%
1,165,535 GNMA Pool # 367806 6.500% 9/15/23 94.906 1,106,163 6.85%
1,433,990 GNMA Pool # 368238 7.000% 12/15/23 97.250 1,394,556 7.20%
1,671,902 GNMA Pool # 368502 7.000% 2/15/24 97.187 1,624,872 7.20%
1,506,000 GNMA Pool # 370773 6.000% 11/15/23 92.187 1,388,337 6.51%
2,132,480 GNMA Pool # 372050 6.500% 2/15/24 94.812 2,021,848 6.86%
468,115 GNMA Pool # 372379 8.000% 10/15/26 101.000 472,797 7.92%
746,765 GNMA Pool # 372468 6.500% 12/15/27 94.094 702,662 6.91%
2,104,499 GNMA Pool # 376218 7.500% 8/15/25 99.031 2,084,107 7.57%
779,411 GNMA Pool # 376400 6.500% 2/15/24 94.812 738,976 6.86%
837,608 GNMA Pool # 387189 7.000% 2/15/24 97.187 814,046 7.20%
299,984 GNMA Pool # 394805 7.500% 2/15/26 98.969 296,892 7.58%
452,552 GNMA Pool # 398251 7.500% 9/15/25 99.031 448,167 7.57%
899,429 GNMA Pool # 405558 7.500% 1/15/26 98.969 890,157 7.58%
2,269,278 GNMA Pool # 410215 7.500% 12/15/25 99.031 2,247,289 7.57%
1,250,024 GNMA Pool # 410915 6.500% 2/15/26 94.500 1,181,274 6.88%
3,773,890 GNMA Pool # 413152 8.000% 10/15/25 101.125 3,816,347 7.91%
428,596 GNMA Pool # 414736 7.500% 11/15/25 99.031 424,444 7.57%
492,228 GNMA Pool # 417225 7.500% 1/15/26 98.969 487,154 7.58%
962,942 GNMA Pool # 417276 7.000% 2/15/26 96.812 932,244 7.23%
2,712,661 GNMA Pool # 420707 7.000% 2/15/26 96.812 2,626,182 7.23%
<PAGE>
$ 523,331 GNMA Pool # 421829 7.500% 4/15/26 $ 98.969 $ 517,936 7.58%
1,179,710 GNMA Pool # 422506 6.500% 3/15/26 94.500 1,114,827 6.88%
117,819 GNMA Pool # 423114 7.000% 9/15/27 96.656 113,879 7.24%
498,456 GNMA Pool # 424173 7.500% 3/15/26 98.969 493,317 7.58%
451,551 GNMA Pool # 427199 7.000% 12/15/27 96.656 436,452 7.24%
1,346,799 GNMA Pool # 430279 7.000% 10/15/27 96.656 1,301,762 7.24%
298,731 GNMA Pool # 431036 8.000% 7/15/26 101.000 301,719 7.92%
1,391,314 GNMA Pool # 431612 8.000% 11/15/26 101.000 1,405,228 7.92%
1,539,873 GNMA Pool # 434505 7.500% 8/15/29 98.875 1,522,550 7.59%
858,079 GNMA Pool # 436214 6.500% 2/15/13 97.062 832,869 6.70%
736,507 GNMA Pool # 436723 7.500% 11/15/26 98.969 728,914 7.58%
2,498,337 GNMA Pool # 436777 7.000% 4/15/27 96.656 2,414,793 7.24%
1,830,079 GNMA Pool # 440166 7.000% 2/15/27 96.656 1,768,881 7.24%
852,903 GNMA Pool # 442063 7.000% 10/15/26 96.812 825,713 7.23%
612,548 GNMA Pool # 442190 8.000% 12/15/26 101.000 618,674 7.92%
531,326 GNMA Pool # 442193 7.500% 12/15/26 98.969 525,849 7.58%
778,775 GNMA Pool # 442996 6.000% 6/15/13 94.781 738,131 6.33%
858,991 GNMA Pool # 446943 7.000% 4/15/27 96.656 830,267 7.24%
2,248,777 GNMA Pool # 448490 7.500% 3/15/27 98.875 2,223,478 7.59%
1,402,947 GNMA Pool # 449176 6.500% 7/15/28 93.843 1,316,568 6.93%
1,460,061 GNMA Pool # 457100 6.500% 11/15/28 93.843 1,370,166 6.93%
1,200,188 GNMA Pool # 458712 7.000% 11/15/27 96.656 1,160,054 7.24%
2,425,757 GNMA Pool # 458762 6.500% 1/15/28 93.843 2,276,404 6.93%
433,227 GNMA Pool # 460698 7.000% 10/15/27 96.656 418,741 7.24%
1,365,536 GNMA Pool # 460726 6.500% 12/15/27 94.094 1,284,888 6.91%
1,606,318 GNMA Pool # 462363 7.000% 11/15/27 96.656 1,552,603 7.24%
896,471 GNMA Pool # 462444 6.500% 12/15/27 94.094 843,526 6.91%
1,361,222 GNMA Pool # 462623 6.500% 3/15/28 93.843 1,277,412 6.93%
880,172 GNMA Pool # 468173 7.000% 8/15/28 96.562 849,912 7.25%
912,633 GNMA Pool # 469226 6.500% 3/15/28 93.843 856,443 6.93%
1,924,085 GNMA Pool # 469615 6.500% 10/15/28 93.843 1,805,619 6.93%
1,790,161 GNMA Pool # 472028 6.500% 5/15/28 93.843 1,679,941 6.93%
1,369,225 GNMA Pool # 480030 6.500% 6/15/28 93.843 1,284,923 6.93%
1,825,333 GNMA Pool # 484195 6.500% 8/15/28 93.843 1,712,948 6.93%
3,333,286 GNMA Pool # 486482 6.500% 9/15/28 93.843 3,128,051 6.93%
990,074 GNMA Pool # 510083 7.000% 7/15/29 96.562 956,036 7.25%
1,446,531 GNMA Pool # 780429 7.500% 9/15/26 99.031 1,432,515 7.57%
684,540 GNMA Pool # 780518 7.000% 6/15/26 96.937 663,573 7.22%
-----------
Total Government Interests (identified cost, $102,259,801) - 98.8% $98,768,551
Other Assets, less Liabilities - 1.2% 1,218,546
-----------
Net Assets - 100.0% $99,987,097
============
(1) Unaudited.
</TABLE>
See notes to financial statements
<PAGE>
Wright Investors' Service Distributors, Inc.
1000 Lafayette Boulevard, Bridgeport, CT 06604
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
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
PFPC Global Fund Services
Wright Managed Investment Funds
P.O. Box 5156
Westborough, Massachusetts 01581-9698
INDEPENDENT AUDITORS
Deloitte & Touche LLP
200 Berkeley Street
Boston, Massachusetts 02116-5022
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.
