- -------------------------------------------------------------------------------
Description of art work on front cover of Prospectus.
EquiFund logo in center of page with globe underneath it, all of which is set
on a blue background.
- -------------------------------------------------------------------------------
THE WRIGHT
EQUIFUND
EQUITY TRUST
EquiFund Logo here
WRIGHT EQUIFUND - AUSTRALASIA
WRIGHT EQUIFUND - AUSTRIA
WRIGHT EQUIFUND - BELGIUM/LUXEMBOURG
WRIGHT EQUIFUND - BRITAIN
WRIGHT EQUIFUND - CANADA
WRIGHT EQUIFUND - FRANCE
WRIGHT EQUIFUND - GERMANY
WRIGHT EQUIFUND - HONG KONG
WRIGHT EQUIFUND - IRELAND
WRIGHT EQUIFUND - JAPAN
WRIGHT EQUIFUND - MEXICO
WRIGHT EQUIFUND - NETHERLANDS
WRIGHT EQUIFUND - NORDIC
WRIGHT EQUIFUND - SWITZERLAND
WRIGHT EQUIFUND - UNITED STATES
WRIGHT EQUIFUND - GLOBAL
WRIGHT EQUIFUND - INTERNATIONAL
PROSPECTUS
MAY 1, 1996
<PAGE>
THE WRIGHT
EQUIFUND
EQUITY TRUST
PROSPECTUS
May 1, 1996
INVESTMENT ADVISER
Wright Investors' Service, Inc.
1000 Lafayette Boulevard
Bridgeport, Connecticut 06604
PRINCIPAL UNDERWRITER
Wright Investors' Service Distributors, Inc.
1000 Lafayette Boulevard
Bridgeport, Connecticut 06604
ADMINISTRATOR
Eaton Vance Management
24 Federal Street
Boston, Massachusetts 02110
CUSTODIAN
Investors Bank & Trust Company
89 South Street
Boston, Massachusetts 02111
TRANSFER AGENT
First Data Investor Services Group
Wright Managed Investment Funds
BOS 725
P.O. Box 1559
Boston, Massachusetts 02104
AUDITORS
Deloitte & Touche LLP
125 Summer Street
Boston Massachusetts 02110
24 FEDERAL STREET
BOSTON, MASSACHUSETTS 02110
<PAGE>
PROSPECTUS
THE WRIGHT EQUIFUND EQUITY TRUST
- -------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Wright EquiFund--Australasia* Wright EquiFund--Germany Wright EquiFund--Nordic
Wright EquiFund--Austria* Wright EquiFund--Hong Kong Wright EquiFund--Switzerland
Wright EquiFund--Belgium/Luxembourg Wright EquiFund--Ireland* Wright EquiFund--United States*
Wright EquiFund--Britain Wright EquiFund--Japan Wright EquiFund--Global*
Wright EquiFund--Canada* Wright EquiFund--Mexico Wright EquiFund--International*
Wright EquiFund--France* Wright EquiFund--Netherlands
- -------------------------------------------------------------------------------
</TABLE>
* As of the date of this Prospectus,these Funds are not available for purchase
in any state of the United States. Contact the principal underwriter or your
broker for the latest information.
Each Fund seeks to enhance total investment return (consisting of price
appreciation plus income) by investing in a broadly based portfolio of equity
securities selected from the publicly traded companies in the National Equity
Index for the nation or nations in which each Fund is permitted to invest. Only
securities for which adequate public information is available and which could be
considered acceptable for investment by a prudent person will comprise the
National Equity Indices.
This combined Prospectus is designed to provide you with information you
should know before investing. Please retain this document for future reference.
A combined Statement of Additional Information dated May 1, 1996 containing
more detailed information about the Funds has been filed with the Securities and
Exchange Commission and is incorporated herein by reference. This Statement is
available without charge from Wright Investors' Service Distributors, Inc.
Write To: The Wright EquiFund Equity Trust
Wright Investors' Service Distributors, Inc.,
1000 Lafayette Blvd., Bridgeport, CT 06604
or Call: (800) 888-9471
SHARES OF THE FUNDS ARE NOT DEPOSITS OR OBLIGATIONS OF, OR ENDORSED OR
GUARANTEED BY ANY BANK OR OTHER INSURED DEPOSITORY INSTITUTION, AND ARE NOT
FEDERALLY INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL
RESERVE BOARD OR ANY OTHER GOVERNMENT AGENCY. SHARES OF THE FUNDS INVOLVE
INVESTMENT RISKS, INCLUDING FLUCTUATIONS IN VALUE AND THE POSSIBLE LOSS OF SOME
OR ALL OF THE PRINCIPAL INVESTMENT.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
PROSPECTUS DATED MAY 1, 1996
<PAGE>
TABLE OF CONTENTS
PAGE
An Introduction to the Funds..................... 2
Shareholder and Fund Expenses.................... 6
Financial Highlights............................. 9
The Funds and their Investment
Objectives and Policies....................... 18
The National Equity Indices...................... 19
Policies that Apply to All Funds Except the
United States, International and Global Funds. 20
Policies that Apply to the United States,
International and Global Funds................ 21
Other Investment Policies........................ 21
Special Investment Considerations - Risks........ 22
The Investment Adviser........................... 24
The Administrator................................ 27
Distribution Expenses............................ 28
How the Funds Value their Shares................. 29
How to Buy Shares................................ 31
How Shareholder Accounts are Maintained.......... 33
Distributions and Dividends by the Funds......... 33
Taxes............................................ 33
How to Exchange Shares........................... 35
How to Redeem or Sell Shares..................... 36
Performance Information.......................... 38
Other Information................................ 39
Tax-Sheltered Retirement Plans................... 40
Appendix......................................... 41
- -------------------------------------------------------------------------------
AN INTRODUCTION TO THE FUNDS
The information summarized below is qualified in its entirety by the more
detailed information set forth below in this Prospectus.
The Trust........................ The Wright EquiFund Equity Trust
(the "Trust") is an open end, management
investment company, known as a mutual fund,
registered as an investment company under
the Investment Company Act of 1940, as
amended (the "1940 Act"). The Trust consists
of 17 series, which are described in this
Prospectus (each a "Wright EquiFund"
and collectively the "Wright EquiFunds").
The Wright EquiFunds offered through this
Prospectus are referred to herein as the
Funds.Each Wright EquiFund is a diversified
fund and represents a separate and distinct
series of the Trust's shares of beneficial
interest.
Investment Objective............. Each Fund seeks to achieve its investment
objective of enhanced total investment
return (price appreciation plus income) by
investing in a broadly based portfolio of
equity securities selected by the Investment
Adviser from the publicly traded companies
in the corresponding National Equity Index.
Only securities for which adequate public
information is available and which could be
considered acceptable by a prudent person
will comprise the National Equity Indices.
Although there can be no guarantee that each
Fund's investment objective will be
achieved, each Fund is expected to have a
broadly based investment portfolio composed
of the equity securities of companies in the
designated nation or nations.
<PAGE>
The Funds........................ The following Funds are offered through this
Prospectus:
Wright EquiFund -- Australasia*
Wright EquiFund -- Austria*
Wright EquiFund -- Belgium/Luxembourg
Wright EquiFund -- Britain
Wright EquiFund -- Canada*
Wright EquiFund -- France*
Wright EquiFund -- Germany
Wright EquiFund -- Hong Kong
Wright EquiFund -- Ireland*
Wright EquiFund -- Japan
Wright EquiFund -- Mexico
Wright EquiFund -- Netherlands
Wright EquiFund -- Nordic
Wright EquiFund -- Switzerland
Wright EquiFund -- United States*
Wright EquiFund -- Global*
Wright EquiFund -- International*
------------------------------------------
* As of the date of this Prospectus, these
Funds are not available for purchase in any
state of the United States. Contact the
principal underwriter or your broker for the
latest information.
The Investment Adviser........... Each Fund has engaged Wright Investors'
and Administrator Service, Inc., 1000 Lafayette Boulevard,
Bridgeport, CT ("Wright" or the "Investment
Adviser") as investment adviser to carry out
the investment and reinvestment of the
Fund's assets. Each Fund also has retained
Eaton Vance Management ("Eaton Vance" or the
"Administrator"), 24 Federal Street, Boston,
MA 02110 as administrator to manage the
Fund's business affairs.
The Distributor.................. Wright Investors' Service Distributors,
Inc. ("WISDI" or the "Principal
Underwriter") is the Distributor of the
Funds' shares and receives a distribution
fee equal on an annual basis to 0.25% of
each Fund's average daily net assets.
<PAGE>
Who May Purchase Fund Shares..... The Funds were established to provide
broadly based investment opportunities in
the main security markets of the world
for investment portfolios managed by
professional trustees and other persons and
institutions acting in a fiduciary capacity.
The Funds are designed to enable fiduciaries
to comply with the rule that investments
made by fiduciaries should be selected with
the care, skill and caution that would be
exercised by a prudent person where the
primary consideration is preservation of
capital. Shares of the Funds are available
to the public as well as through these
fiduciaries.
How to Purchase Fund Shares...... There is no sales charge on the purchase
of Fund shares. Shares of any Fund may be
purchased at the net asset value per
share next determined after receipt and
acceptance of the purchase order. The
minimum initial investment in each Fund is
$1,000 which will be waived for
investments in 401(k) tax-sheltered
retirement plans. The $1,000 minimum initial
investment is also waived for Bank Draft
Investing accounts which may be
established with an investment of $50 or more
with a minimum of $50 applicable to each
subsequent investment. Shares may also be
purchased through an exchange of securities.
See "How to Buy Shares."
Distribution Options............ Unless the shareholder has elected to
receive dividends and distributions in cash,
dividends and distributions will be
reinvested in additional shares of the Fund
making such dividend or distribution
at the net asset value per share as of the
reinvestment date. Dividend and capital
gains distributions, if any, are usually made
annually in December.
Redemptions...................... Shares may be redeemed directly from a
Fund at the net asset value per share next
determined after receipt of the
redemption request in good order. A telephone
redemption privilege is available as
described on page 36.
Exchange Privilege............... Shares of the Funds may be exchanged for
shares of certain other funds managed by the
Investment Adviser at the net asset value
next determined after receipt of the exchange
request. There are limits on the number and
frequency of exchanges. A telephone exchange
privilege is available as described on
page 35.
<PAGE>
Net Asset Value.................. The net asset value per share of each
Fund is calculated on each day the New York
Stock Exchange is open for trading.
Call (800) 888-9471 for the previous day's
net asset value.
Taxation......................... Each Fund has qualified and elected or
intends to qualify and elect to be treated
as a regulated investment company for
federal income tax purposes under Subchapter
M of the Internal Revenue Code.
Shareholder Communications....... Each shareholder will receive annual and
semi-annual reports containing financial
statements, and a statement confirming
each share transaction. Financial statements
included in annual reports are audited by the
Trust's independent certified public
accountants. Where possible, shareholder
confirmations and account statements will
consolidate all Wright investment fund
holdings of the shareholder.
Special Risk Considerations...... International investments pose additional
risks including currency exchange rate
fluctuation, currency revaluation and
political risks. See page 22 for additional
foreign investment considerations.
THE PROSPECTUSES OF THE FUNDS ARE COMBINED IN THIS PROSPECTUS. EACH FUND OFFERS
ONLY ITS OWN SHARES, YET IT IS POSSIBLE THAT A FUND MIGHT BECOME LIABLE FOR A
MISSTATEMENT IN THE PROSPECTUS OF ANOTHER FUND. THE TRUSTEES OF THE TRUST HAVE
CONSIDERED THIS IN APPROVING THE USE OF A COMBINED PROSPECTUS.
<PAGE>
SHAREHOLDER AND FUND EXPENSES
EQUIFUND -- WRIGHT NATIONAL FIDUCIARY EQUITY FUNDS
<TABLE>
Belgium/
Luxem- Hong
bourg Britain Germany Kong Japan
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Shareholder Transaction Expenses
(as a percentage of the maximum offering price)
Maximum Sales Charge Imposed on Purchases none none none none none
Maximum Sales Charge Imposed
on Reinvestment of Dividends none none none none none
Deferred Sales Charge none none none none none
Redemption Fees+ 1.50% 1.50% 1.50% 1.50% 1.50%
Exchange Fees none none none none none
Annualized Fund Operating Expenses
(as a percentage of average daily net assets)
Investment Advisory Fees (after any fee reduction) (1) 0.75% 0.75% 0.75% 0.75% 0.75%
Rule 12b-1 Distribution Expenses (after expense
reduction) (1) 0.25% 0.25% 0.25% 0.25% 0.25%
Other Expenses (including administration
fee of 0.10%) (2) 0.76% 0.56% 0.59% 0.59% 0.81%
------ ------ ------ ------ ------
Total Net Operating Expenses (after reduction) (3) (4) 1.76% 1.56% 1.59% 1.59% 1.81%
====== ====== ====== ====== ======
</TABLE>
<TABLE>
Nether- Switzer-
Mexico lands Nordic land
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shareholder Transaction Expenses
(as a percentage of the maximum offering price)
Maximum Sales Charge Imposed on Purchases none none none none
Maximum Sales Charge Imposed
on Reinvestment of Dividends none none none none
Deferred Sales Charge none none none none
Redemption Fees+ 1.50% 1.50% 1.50% 1.50%
Exchange Fees none none none none
Annualized Fund Operating Expenses
(as a percentage of average daily net assets)
Investment Advisory Fees (after any fee reduction) (1) 0.75% 0.71% 0.26% 0.75%
Rule 12b-1 Distribution Expenses (after expense
reduction) (1) 0.25% 0.10% 0.10% 0.12%
Other Expenses (including administration
fee of 0.10%) (2) 0.72% 1.45% 1.88% 1.39%
------ ------ ------ ------
Total Net Operating Expenses (after reduction) (3) (4) 1.72% 2.26% 2.24% 2.26%
====== ====== ====== ======
</TABLE>
<PAGE>
<TABLE>
Aus- United Interna-
tralasia* Austria* Canada *France *Ireland *States* Global* tional*
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shareholder Transaction Expenses
(as a percentage of the maximum offering price)
Maximum Sales Charge Imposed on Purchases none none none none none none none none
Maximum Sales Charge Imposed
on Reinvestment of Dividends none none none none none none none none
Deferred Sales Charge none none none none none none none none
Redemption Fees+ 1.50% 1.50% 1.50% 1.50% 1.50% 1.50% 1.50% 1.50%
Exchange Fees none none none none none none none none
Annualized Fund Operating Expenses
(as a percentage of average daily net assets)
Investment Advisory Fees
(after any fee reduction) (1) 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Rule 12b-1 Distribution Expenses
(after expense reduction) (1) 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Other Expenses (including administration
fee of 0.10%) (2) 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%
------ ------ ------ ------ ------ ------ ------ ------
Total Net Operating Expenses
(after reduction) (3) (4) 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%
====== ====== ====== ====== ====== ====== ====== ======
- ---------------------------------------------------------------------------------------------------------------------------------
<FN>
* These Funds are not offered for sale and have not commenced operations.
+ Applicable only to shares purchased after December 31, 1995 and redeemed
within 30 days of purchase.
(1) After reduction by the Investment Adviser or the Principal Underwriter,
which is expected to continue until December 31, 1996. If no reduction were
made, the Investment Advisory Fees would be a maximum of 0.75% of each
Fund's average daily net assets. If no reduction were made, the Rule 12b-1
Distribution Expenses would be 0.25% of each Fund's average daily net
assets.
(2) Because the Australasia, Austria, Canada, France, Ireland, United States,
Global and International Funds have not yet been offered for sale, these
figures are based on estimates for the fiscal year ending December 31, 1996,
and reflect an allocation of expenses in excess of 2.00% of each Fund's
average daily net assets to the Investment Adviser. If such allocation were
not made, Other Expenses are estimated to be 2.01% for Australasia; 2.05%
for Austria; 2.15% for Canada; 2.15% for France; 2.15% for Global; 2.08% for
International; 2.04% for Ireland; and 2.00% for United States.
(3) The Investment Adviser and Principal Underwriter reduced their fees for the
Netherlands and Nordic Funds and in addition the Investment Adviser was
allocated certain expenses relating to the Nordic Fund during the 1995
fiscal year to the extent that expenses, net of custodian fee credits,
exceeded 2.00% of the daily net assets of each Fund that was offering its
shares and the Investment Adviser and Principal Underwriter voluntarily
intend to do the same for each Fund for the current fiscal year. In
addition, the Principal Underwriter reduced its fee for the Switzerland
Fund. If no fee reductions or expense allocations were made, the Annualized
Fund Operating Expenses as a persentage of average net assets, including
investment advisory fees at a maximum of 0.75% of average daily net assets
would have been: Switzerland 2.39%; Nordic 3.25%; Netherlands 2.45%; and,
for the Funds with no operating experience prior to 1996, expenses are
estimated to be: Australasia 3.11%; Austria 3.15%; Canada 3.25%; France
3.25%; Global 3.25%; International 3.18%; Ireland 3.14%; and United States
3.00%. These fee reductions and expense allocations are expected to continue
until December 31, 1996.
(4) During the year ended December 31, 1995, custodian fees were reduced by
credits resulting from cash balances that the Funds maintained with
Investors Bank & Trust Company. If these credits were included, the Total
Net Operating Expenses shown above would have been: Belgium/Luxembourg
1.53%; Britain 1.24%; Germany 1.29%; Hong Kong 1.34%; Japan 1.49%; Mexico
1.39%; Netherlands 2.00%; Nordic 2.00%; and Switzerland 2.00%.
</FN>
</TABLE>
<PAGE>
EXAMPLE OF FUND EXPENSES
The following is an illustration of the total transaction and operating
expenses that an investor in any Fund would bear over different periods of time,
assuming an investment of $1,000, a 5% annual return on the investment and a
complete redemption at the end of each period:
<TABLE>
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
<S> <C> <C> <C> <C>
Australasia* $ 20 $ 63
Austria* 20 63
Belgium/Luxembourg 18 55 $ 95 $207
Britain 16 49 85 186
Canada* 20 63
France* 20 63
Germany 16 50 87 189
Hong Kong 16 50 87 189
Ireland* 20 63
Japan 18 57 98 213
Mexico 17 54 93 203
Netherlands 23 71 121 260
Nordic 23 70 120 257
Switzerland 23 71 121 260
United States* 20 63
Global* 20 63
International* 20 63
* These Funds are not offered for sale and have not commenced operations.
- --------------------------------------------------------------------------------------------------
</TABLE>
THE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE
EXPENSES AND ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN. Federal
regulations require the Example to assume a 5% annual return, but actual return
will vary.
NOTES
(1) The purpose of the above tables and Examples is to assist investors in
understanding the various costs and expenses that investors in the Funds may
bear directly or indirectly. See "Financial Highlights," "The Investment
Adviser," "The Administrator," "Distribution Expenses" and "How to Redeem or
Sell Shares." The table reflects estimated fees and expenses based on actual
operating expenses for the Belgium/Luxembourg, Britain, Germany, Hong Kong,
Japan, Mexico, Netherlands, Nordic and Switzerland Funds for the fiscal year
ended December 31, 1995. The fees and expenses shown in the table assume the
continuation of the reduction of the investment advisory fee and partial
allocation of expenses to the Investment Adviser and the reduction of the fee
payable under the Distribution Plan. Actual expenses may be greater or less than
those shown in the table and example. A Fund's payment of a distribution fee may
result in a long-term shareholder paying more than the economic equivalent of
the maximum initial sales charge permitted under the Rules of Fair Practice of
the National Association of Securities Dealers, Inc.
<PAGE>
FINANCIAL HIGHLIGHTS
The following information for the fiscal year ended December 31, 1995
(unless otherwise stated) should be read in conjunction with the audited
financial statements included in the Statement of Additional Information, all of
which have been so included in reliance upon the report of Deloitte & Touche
LLP, independent certified public accountants, as experts in accounting and
auditing, which report is contained in the Funds' Statement of Additional
Information. Further information regarding the performance of a Fund is
contained in its annual report to shareholders which may be obtained without
charge by contacting the Fund's Principal Underwriter, Wright Investors' Service
Distributors, Inc., at (800) 888-9471.
<TABLE>
THE WRIGHT EQUIFUND EQUITY TRUST
----------------------------------
BELGIUM/LUXEMBOURG SERIES
Year Ended December 31
---------------------------------
1995 1994(1)
--------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value -- beginning of year................ $ 10.240 $ 10.000
-------- --------
Income from Investment Operations:
Net investment income............................. $ 0.156 $ 0.106
Net realized and unrealized gain.................. 1.904 0.174
-------- --------
Total income from investment operations......... $ 2.060 $ 0.280
-------- --------
Less Distributions:
From net investment income........................ $ (0.050) $ (0.040)
From net realized gains on investments............ (0.240) --
-------- --------
Total distributions............................. $ (0.290) $ (0.040)
-------- --------
Net asset value -- end of year...................... $ 12.010 $ 10.240
========= =========
Total Return(3)..................................... 20.28% 2.81%
Annualized Ratios/Supplemental Data:
Net assets, end of year (000 omitted)............. $ 14,753 $ 11,437
Ratio of net expenses to average net assets....... 1.76%(4) 1.62%(2)
Ratio of net investment income to average net assets 1.52% 0.95%(2)
Portfolio Turnover Rate........................... 38% 26%
<FN>
(1) For the period from start of business, February 15, 1994 to December 31, 1994.
(2) Annualized.
(3)Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each period reported. Dividends and distributions, if any, are assumed to
be invested at the net asset value on the record date.
(4)Custodian fees were reduced by credits resulting from cash balances the
Trust maintained with the custodian (Note 2). The computation of net
expenses to average daily net assets reported above is computed without
consideration of such credits, in accordance with reporting regulations in
effect beginning in 1995. If these credits were considered, the ratio of
net expenses to average daily net assets would have been reduced to 1.53%.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
FINANCIAL HIGHLIGHTS
- ----------------------------
<TABLE>
THE WRIGHT EQUIFUND EQUITY TRUST
--------------------------------
BRITAIN SERIES
Year Ended December 31
--------------------------------
1995(1)
- --------------------------------------------------------------------------------------------------------
<S> <C>
Net asset value -- beginning of period.............. $ 10.000
--------
Income from Investment Operations:
Net investment income............................. $ 0.213
Net realized and unrealized gain.................. 0.892
--------
Total income from investment operations......... $ 1.105
--------
Less Distributions:
From net investment income........................ $ (0.150)
From net realized gains on investments............ (0.555)
--------
Total distributions............................. $ (0.705)
--------
Net asset value -- end of period.................... $ 10.400
=========
Total Return(2)..................................... 11.10%
Annualized Ratios/Supplemental Data:
Net assets, end of period (000 omitted)........... $ 13,932
Ratio of net expenses to average net assets....... 1.56%(3) (4)
Ratio of net investment income to average net assets 2.77%(3)
Portfolio Turnover Rate........................... 42%
<FN>
(1) For the period from start of business, April 20, 1995, to December 31,
1995.
(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 record date.
(3) Annualized.
(4)Custodian fees were reduced by credits resulting from cash balances the
Trust maintained with the custodian (Note 2). The computation of net
expenses to average daily net assets reported above is computed without
consideration of such credits, in accordance with reporting regulations in
effect beginning in 1995. If these credits were considered, the ratio of
net expenses to average daily net assets would have been reduced to 1.24%.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
FINANCIAL HIGHLIGHTS
- ----------------------------
<TABLE>
THE WRIGHT EQUIFUND EQUITY TRUST
--------------------------------
GERMANY SERIES
Year Ended December 31
-------------------------------
1995(1)
- --------------------------------------------------------------------------------------------------------
<S> <C>
Net asset value -- beginning of period.............. $ 10.000
--------
Income from Investment Operations:
Net investment income............................. $ 0.073
Net realized and unrealized loss.................. (0.783)
--------
Total loss from investment operations........... $ (0.710)
Less Distributions:
From net investment income........................ (0.050)
--------
Net asset value -- end of period.................... $ 9.240
=========
Total Return(2)..................................... (7.09%)
Annualized Ratios/Supplemental Data:
Net assets, end of period (000 omitted)........... $ 16,419
Ratio of net expenses to average net assets....... 1.59%(3) (4)
Ratio of net investment income to average net assets 0.91%(3)
Portfolio Turnover Rate........................... 18%
<FN>
(1) For the period from start of business, April 19, 1995, to December 31,
1995.
(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 record date.
(3) Annualized.
(4)Custodian fees were reduced by credits resulting from cash balances the
Trust maintained with the custodian (Note 2). The computation of net
expenses to average daily net assets reported above is computed without
consideration of such credits, in accordance with reporting regulations in
effect beginning in 1995. If these credits were considered, the ratio of
net expenses to average daily net assets would have been reduced to 1.29%.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
FINANCIAL HIGHLIGHTS
- ----------------------------
<TABLE>
THE WRIGHT EQUIFUND EQUITY TRUST
--------------------------------------------------------------
HONG KONG SERIES
Year Ended December 31
--------------------------------------------------------------
1995 1994 1993 1992 1991
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value -- beginning of year.... $ 13.020 $ 20.990 $ 11.770 $ 10.270 $ 8.360
-------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income(1).............. $ 0.368 $ 0.678 $ 0.426 $ 0.330 $ 0.266
Net realized and unrealized gain
(loss) (3)........................... (0.158) (8.448) 9.394 1.355 2.474
-------- -------- -------- -------- --------
Total income (loss)
from investment operations........ $ 0.210 $ (7.770) $ 9.820 $ 1.685 $ 2.740
-------- -------- -------- -------- --------
Less Distributions:
From net investment income............ $ (0.200) $ (0.200) $ (0.254) $ (0.170) $ (0.200)
From net realized gains on investments -- -- (0.346) (0.015) (0.630)
-------- -------- -------- -------- --------
Total distributions................. $ (0.200) $ (0.200) $ (0.600) $ (0.185) $ (0.830)
-------- -------- -------- -------- --------
Net asset value -- end of year.......... $ 13.030 $ 13.020 $ 20.990 $ 11.770 $ 10.270
========= ========= ========= ========= =========
Total Return(2) ........................ 1.63% (37.03%) 84.32% 16.33% 34.34%
Annualized Ratios/Supplemental Data:
Net assets, end of year (000 omitted). $ 25,399 $ 19,679 $ 16,210 $ 3,545 $ 235
Ratio of net expenses to average net assets 1.59%(4) 1.41% 2.00% 2.00% 2.00%
Ratio of net investment income to
average net assets.................. 3.26% 3.93% 3.01% 3.13% 2.88%
Portfolio Turnover Rate............... 100% 131% 76% 39% 77%
<FN>
(1)During each of the four periods December 31,1990 through December
31,1993, the Investment Adviser, the Administrator and the Principal Underwriter
reduced their fees, and the Investment Adviser was allocated a portion of the
Fund's operating expenses. Had such actions not been undertaken, net investment
income (loss) per share and the ratios would have been as follows:
1993 1992 1991
---- ---- ----
Net investment income (loss) per share.............. $ 0.419 $ 0.093 $ (0.871)
========= ========= =========
Annualized Ratios (As a percentage of average net assets):
Expenses.......................................... 2.05% 4.25% 14.31%
========= ========= =========
Net investment income (loss)...................... 2.96% 0.88% (9.43%)
========= ========= =========
(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 record date.
(3)For the years ended December 31, 1995 and 1992, the per share amount is
not in accord with the net realized and unrealized gain (loss) for the
period because of the timing of sales of Trust shares and the amounts per
share realized and unrealized gains and losses at such times.
(4)Custodian fees were reduced by credits resulting from cash balances the
Trust maintained with the custodian (Note 2). The computation of net
expenses to average daily net assets reported above is computed without
consideration of such credits, in accordance with reporting regulations in
effect beginning in 1995. If these credits were considered, the ratio of
net expenses to average daily net assets would have been reduced to 1.34%.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
FINANCIAL HIGHLIGHTS
- ------------------------------
<TABLE>
THE WRIGHT EQUIFUND EQUITY TRUST
----------------------------------
JAPAN SERIES
Year Ended December 31
----------------------------------
1995 1994(1)
- --------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value -- beginning of year................ $ 9.660 $ 10.000
-------- --------
Income from Investment Operations:
Net investment loss............................... $ (0.045) $ (0.050)
Net realized and unrealized loss.................. (0.835) (0.170)
-------- --------
Total loss from investment operations........... $ (0.880) $ (0.220)
Less Distributions:
From net realized gains on investments............ -- (0.120)
-------- --------
Net asset value -- end of year...................... $ 8.780 $ 9.660
========= =========
Total Return(3)..................................... (9.11%) (2.17%)
Annualized Ratios/Supplemental Data:
Net assets, end of year (000 omitted)............. $ 21,631 $ 8,653
Ratio of net expenses to average net assets....... 1.81%(4) 1.83% (2)
Ratio of net investment loss to average net assets (0.67%) (0.66%)(2)
Portfolio Turnover Rate........................... 112% 48%
<FN>
(1) For the period from the start of business, February 14, 1994 to December 31, 1994.
(2) Annualized.
(3)Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each period reported. Dividends and distributions, if any, are assumed to
be invested at the net asset value on the record date.
(4)Custodian fees were reduced by credits resulting from cash balances the
Trust maintained with the custodian (Note 2). The computation of net
expenses to average daily net assets reported above is computed without
consideration of such credits, in accordance with reporting regulations in
effect beginning in 1995. If these credits were considered, the ratio of
net expenses to average daily net assets would have been reduced to 1.49%.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
FINANCIAL HIGHLIGHTS
- ----------------------------
<TABLE>
THE WRIGHT EQUIFUND EQUITY TRUST
---------------------------------
MEXICO SERIES
Year Ended December 31
---------------------------------
1995 1994(1)
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value -- beginning of year................ $ 6.480 $ 10.000
-------- --------
Income from Investment Operations:
Net investment income (loss)...................... $ (0.012) $ (0.040)
Net realized and unrealized loss.................. (2.175) (2.970)
-------- --------
Total loss from investment operations........... $ (2.187) $ (3.010)
-------- --------
Less Distributions:
From net realized gains on investments............ $ (0.030) $ (0.510)
In excess of net realized gains on investments.... (0.043) --
-------- --------
Total distributions............................. $ (0.073) $ (0.510)
-------- --------
Net asset value -- end of year...................... $ 4.220 $ 6.480
========= =========
Total Return(3)..................................... (33.37%) (30.91%)
Annualized Ratios/Supplemental Data:
Net assets, end of year (000 omitted)............. $ 32,493 $ 13,422
Ratio of net expenses to average net assets....... 1.72%(4) 1.38% (2)
Ratio of net investment loss to average net assets (0.41%) (0.98%)(2)
Portfolio Turnover Rate........................... 110% 85%
<FN>
(1) For the period from the start of business, August 2, 1994 to December 31, 1994.
(2) Annualized.
(3)Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each period reported. Dividends and distributions, if any, are assumed to
be invested at the net asset value on the record date.
(4)Custodian fees were reduced by credits resulting from cash balances the
Trust maintained with the custodian (Note 2). The computation of net
expenses to average daily net assets reported above is computed without
consideration of such credits, in accordance with reporting regulations in
effect beginning in 1995. If these credits were considered, the ratio of
net expenses to average daily net assets would have been reduced to 1.39%.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
FINANCIAL HIGHLIGHTS
- ---------------------------
<TABLE>
THE WRIGHT EQUIFUND EQUITY TRUST
--------------------------------------------------------------
NETHERLANDS SERIES
Year Ended December 31
--------------------------------------------------------------
1995 1994 1993(2) 1992 1991
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value -- beginning of year.... $ 8.100 $ 10.020 $ 8.460 $ 9.420 $ 8.650
-------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income (loss)(1)....... $ (0.004) $ (0.060) $ (0.015) $ 0.108 $ 0.114
Net realized and unrealized gain
(loss)............................... 1.490 1.150 1.655 (0.958) 0.756
-------- -------- -------- -------- --------
Total income (loss)
from investment operations........ $ 1.486 $ 1.090 $ 1.640 $ (0.850) $ 0.870
-------- -------- -------- -------- --------
Less Distributions:
From net investment income............ $ -- $ (0.020) $ (0.080) $ (0.110) $ (0.100)
From net realized gains on investments (0.996) (2.990) -- -- --
-------- -------- -------- -------- --------
Total distributions................... $ (0.996) $ (3.010) $ (0.080) $ (0.110) $ (0.100)
-------- -------- -------- -------- --------
Net asset value -- end of year.......... $ 8.590 $ 8.100 $ 10.020 $ 8.460 $ 9.420
========= ========= ========= ========= =========
Total Return(3) ........................ 18.84% 11.68% 19.52% (9.18%) 10.00%
Annualized Ratios/Supplemental Data:
Net assets, end of year (000 omitted). $ 7,218 $ 3,951 $ 8,753 $ 165 $ 134
Ratio of net expenses to average net assets 2.26%(4) 1.93% 2.00% 2.00% 1.69%
Ratio of net investment income (loss) to average
net assets........................... (0.13%) 0.13% (0.16%) 1.26% 1.39%
Portfolio Turnover Rate............... 87% 101% 47% 69% 59%
<FN>
(1)During certain periods presented, either the Investment Adviser, the
Administrator and/or the Principal Underwriter reduced their fees, and the
Investment Adviser was allocated a portion of operating expenses. Had such
actions not been undertaken, net investment loss per share and the ratios
would have been as follows:
1995 1993(2) 1992 1991
---- ---- ---- ----
Net investment loss per share........... $ (0.018) $ (0.085) $ (2.481) $ (1.078)
========= ========= ========= =========
Annualized Ratios (As a percentage of average net assets):
Expenses.............................. 2.45% 2.75% 32.21% 16.23%
========= ========= ========= =========
Net investment loss................... (0.58%) (0.91%) (28.95%) (13.15%)
========= ========= ========= =========
(2) Certain of the per share data are based on average shares outstanding.
(3) Total investment return is calculated assuming a purchase at the net
asset value on the first day and a sale at the net asset value on the last
day of each period reported. Dividends and distributions, if any, are
assumed to be invested at the net asset value on the record date.
(4)Custodian fees were reduced by credits resulting from cash balances the
Trust maintained with the custodian (Note 2). The computation of net
expenses to average daily net assets reported above is computed without
consideration of such credits, in accordance with reporting regulations in
effect beginning in 1995. If these credits were considered, the ratio of
net expenses to average daily net assets would have been reduced to 2.00%.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------------
<TABLE>
THE WRIGHT EQUIFUND EQUITY TRUST
----------------------------------
NORDIC SERIES
Year Ended December 31
----------------------------------
1995 1994(2)
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value -- beginning of year................ $ 9.500 $ 10.000
-------- --------
Income from Investment Operations:
Net investment income (loss) (1).................. $ 0.072 $ (0.012)
Net realized and unrealized gain (loss)........... 1.808 (0.118)
-------- --------
Total income (loss)
from investment operations.................... $ 1.880 $ (0.130)
-------- --------
Less Distributions:
From net investment income........................ $ (0.050) $ --
In excess of net realized gain on investments..... -- (0.366)
From paid-in capital.............................. -- (0.004)
-------- --------
Total distributions............................... $ (0.050) $ (0.370)
-------- --------
Net asset value -- end of year...................... $ 11.330 $ 9.500
========= =========
Total Return(4)..................................... 19.80% (1.19%)
Annualized Ratios/Supplemental Data:
Net assets, end of year (000 omitted)............. $ 3,504 $ 8,712
Ratio of net expenses to average net assets....... 2.24%(5) 1.78% (3)
Ratio of net investment income (loss) to average net assets 0.15%
(0.35%)(3)
Portfolio Turnover Rate........................... 94% 33%
<FN>
(1) During the year ended December 31, 1995, the Investment Adviser and the
Principal Underwriter reduced their fees and the Investment Adviser was
allocated a portion of operating expenses. Had such actions not been
undertaken, net investment loss per share and the ratios would have been as
follows:
1995
Net investment loss per share....................... $ (0.523)
=========
Annualized Ratios (As a percentage of average net assets):
Expenses.......................................... 3.25%
=========
Net investment loss............................... (1.09%)
=========
(2)For the period from the start of business, February 14, 1994 to December
31, 1994.
(3)Annualized.
(4)Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each period reported. Dividends and distributions, if any, are assumed to
be invested at the net asset value on the record date.
(5)Custodian fees were reduced by credits resulting from cash balances the
Trust maintained with the custodian (Note 2). The computation of net
expenses to average daily net assets reported above is computed without
consideration of such credits, in accordance with reporting regulations in
effect beginning in 1995. If these credits were considered, the ratio of
net expenses to average daily net assets would have been reduced to 2.00%.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
FINANCIAL HIGHLIGHTS
- ---------------------------
<TABLE>
THE WRIGHT EQUIFUND EQUITY TRUST
------------------------------------
SWITZERLAND SERIES
Year Ended December 31
-----------------------------------
1995 1994(2)
----------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value -- beginning of year................ $ 9.430 $ 10.000
-------- --------
Income from Investment Operations:
Net investment income(1).......................... $ 0.060 $ 0.075
Net realized and unrealized gain (loss)........... 1.660 (0.595)
-------- --------
Total gain (loss) from investment operations.... $ 1.720 $ (0.520)
Less Distributions:
From net investment income........................ (0.050) (0.050)
-------- --------
Net asset value -- end of year...................... $ 11.100 $ 9.430
========= =========
Total Return(4)..................................... 18.35% (5.19%)
Annualized Ratios/Supplemental Data:
Net assets, end of year (000 omitted)............. $ 7,628 $ 3,813
Ratio of net expenses to average net assets....... 2.26%(5) 2.00%(3)
Ratio of net investment income to average net assets 0.72% 0.49%(3)
Portfolio Turnover Rate........................... 95% 94%
<FN>
(1)During certain periods presented, the Investment Adviser and/or the
Principal Underwriter reduced their fees. Had such actions not been
undertaken, net investment income per share and the ratios would have been
as follows:
1995 1994(2)
---- ----
Net investment income per share..................... $ 0.027 $ 0.063
========= =========
Annualized Ratios (As a percentage of average net assets):
Expenses.......................................... 2.39% 2.08%(3)
========= =========
Net investment income............................. 0.32% 0.41%(3)
========= =========
(2) For the period from the start of business, February 14, 1994 to December 31, 1994.
(3) Annualized.
(4)Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each period reported. Dividends and distributions, if any, are assumed to
be invested at the net asset value on the record date.
(5)Custodian fees were reduced by credits resulting from cash balances the
Trust maintained with the custodian (Note 2). The computation of net
expenses to average daily net assets reported above is computed without
consideration of such credits, in accordance with reporting regulations in
effect beginning in 1995. If these credits were considered, the ratio of
net expenses to average daily net assets would have been reduced to 2.00%.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
THE FUNDS AND THEIR INVESTMENT OBJECTIVES AND POLICIES
Each Fund seeks to enhance total investment return (consisting of price
appreciation plus income) by investing in a broadly based portfolio of equity
securities selected by the Investment Adviser from the publicly traded companies
in the National Equity Index for the nation or nations in which each Fund is
permitted to invest. Only securities for which adequate public information is
available and which could be considered acceptable for investment by a prudent
person will comprise a National Equity Index. Each Fund will invest at least 65%
of its total assets in the securities of companies located in the country or
countries referred to in its name. The multiple country Funds will invest in
securities of issuers in the following countries: Wright EquiFund--Australasia
- -- Australia and New Zealand; Wright EquiFund--Belgium/Luxembourg -- Belgium and
Luxembourg and Wright EquiFund--Nordic -- Denmark, Finland, Norway and Sweden.
International Fund will invest at least 65% of its total assets among the
countries (excluding the United States) for which National Equity Indices exist.
Global Fund will invest at least 65% of its total assets among the countries
(including the United States) for which National Equity Indices exist. The
multiple country Funds will not necessarily allocate investments equally among
the different countries located in the applicable geographical regions since
there may be a limited number of qualified issuers and securities in a given
country. Thus, investments may at times be weighted more heavily in some
countries within a multiple country Fund. In some instances, all of the assets
of a multiple-country Fund may be invested in one country. A Fund's selection of
equity securities is limited to those equity securities included in the National
Equity Index (which is described below) relating to such Fund. Each Fund will,
under normal market conditions, invest at least 80% of its net assets in equity
securities, including common stocks, preferred stocks and securities convertible
into stock. With respect to Austria, Belgium/Luxembourg, Canada, France,
Germany, Hong Kong, Japan, Netherlands, Nordic and Switzerland Funds, the policy
stated in the preceding sentence is fundamental and may not be changed without
shareholder approval. As a matter of nonfundamental policy, it is expected that
the Funds will normally be fully invested in equity securities. However, for
temporary defensive purposes, a Fund may hold cash or invest all or a portion of
its net assets in the short-term debt securities described under "Special
Considerations -- Defensive Investments."
Except as provided above, the investment objective and policies of each
Fund have not been identified as fundamental and may be changed by the Trustees
of the Trust without a vote of the affected Fund's shareholders. Any such change
of the investment objective of a Fund will be preceded by thirty days' advance
written notice to each shareholder of such Fund. If any changes were made, the
Fund might have an investment objective different from the objective which an
investor considered appropriate at the time the investor became a shareholder in
the Fund. There is no assurance that the Funds will achieve their respective
investment objective. The market price of securities held by the Funds that are
quoted or denominated in foreign currencies, when expressed in U.S. dollars,
will fluctuate in response to changes in exchange rates between the U.S. dollar
and the currencies in which the securities are quoted or denominated. The net
asset value of each Fund's shares will also fluctuate as a result of changes in
the value of the securities that it owns.
<PAGE>
THE NATIONAL EQUITY INDICES
Wright, with the assistance of local financial institutions as described
below, has developed the National Equity Indices (the "Indices"). Each Index is
designed to be an index of substantially all the publicly traded companies in
the nation or nations in which each respective Fund is permitted to invest which
meet the requirements of a prudent investor. The prudent investor standard
requires that care, skill and caution be used in selecting securities for
investment. This prudent investor standard is the foundation for the investment
criteria employed in creating the Indices. The Investment Adviser will select
securities for investment from those included in the corresponding Index, or in
the case of International Fund, from those included in all the Indices except
the United States National Equity Index or in the case of Global Fund, from
those included in all the Indices including the United States National Equity
Index.
Wright has developed disciplined objective criteria to insure that the
required care, skill and caution are used in selecting securities for each of
the Indices.
Wright generally considers for inclusion in an Index only those companies
which have at least:
1. Five years of audited operating information;
2. An established minimum in both book value and market value; and
3. A three-year record of pricing in a public market.
In addition, only companies that meet the following criteria will be
included in an Index:
1. A significant portion of the shares of the company is believed to
be publicly owned;
2. The company has had positive earnings for the last fiscal
or calendar year, or for the last twelve months, or cumulatively
for the last three years; and
3. The company is not a closed-end investment company, a real estate
investment trust or a non-bank securities broker/dealer.
In selecting securities for the Indices and for inclusion in the portfolios
of the Funds, Wright utilizes its WORLDSCOPE(R) international database. The
database provides more than 1,500 items of information on more than 13,000
companies worldwide. Except with respect to the United States, Wright utilizes
the services of major financial institutions that are located in the nations in
which the respective Funds are permitted to invest and are qualified to supply
Wright with research products and services. These services include reports on
particular industries and companies, economic surveys and analyses of the
investment environment and trends in a particular nation, recommendations as to
whether specific securities should be included in an Index and other appropriate
assistance in the performance of Wright's decision-making responsibilities.
The Indices are adjusted quarterly and as otherwise necessary to reflect
significant events. Changes in the composition of an Index will be made by
determining whether existing companies
<PAGE>
included in the Index continue to meet the criteria of the Index and
whether other companies meet these criteria and should replace or be added to
the companies already comprising that Index. The Indices give equal weight to
each security included therein, and are intended to include substantially all
the publicly traded companies which meet the requirements of the prudent
investor in the respective nations. Use of the equal weighting method of
constructing an Index will often result in a greater representation of smaller
capitalization companies than would occur if the Index were weighted on the
basis of relative market capitalization in the nation or nations in which their
securities are primarily traded. Such smaller capitalization companies may have
shorter operating histories, less diversification of assets and smaller dividend
payments than larger capitalization companies. On the other hand, such smaller
capitalization companies may be younger or less mature companies still
experiencing significant growth. A detailed explanation of the objective
criteria used in the process of selecting companies for inclusion in an Index is
included in the Statement of Additional Information.
The securities included in an Index will be (i) admitted to official
listing on a stock exchange in any Member State of the European Economic
Community, (ii) admitted to official listing on a recognized stock exchange in
any other country in Western Europe, Asia, Oceania, the American continents,
including Bermuda, and Africa, (iii) traded on another regulated market in any
such Member State of the European Economic Community or such other country
referred to above, provided such market operates regularly and is recognized and
open to the public, or (iv) recently issued, provided the terms of the issue
provide that application be made for admission to official listing on any of the
stock exchanges or other regulated markets referred to above, and provided such
listing is secured within a year following the date of issuance.
The performance of each National Equity Index is included in various
publications of Wright Investors' Service, including the monthly INTERNATIONAL
INVESTMENT ADVICE AND ANALYSIS.
POLICIES THAT APPLY TO ALL FUNDS
EXCEPT THE UNITED STATES, INTERNATIONAL AND GLOBAL FUNDS
Each Fund seeks to achieve its investment objective of enhanced total
investment return (price appreciation plus income) by investing in a broadly
based portfolio of equity securities selected by the Investment Adviser from the
publicly traded companies in the corresponding Index. Subject to the
availability of assets for investment, the Investment Adviser will select equity
securities for a Fund's portfolio from companies in the relevant Index, or
determine to sell securities in the Fund's portfolio, on the basis of
characteristics which have been identified by the Investment Adviser as being
likely to provide comparatively superior investment return over the intermediate
term. Each Fund may acquire for its portfolio only those securities which are
included in the relevant Index at the time of purchase. Although there can be no
guarantee that each Fund's investment objective will be achieved, each Fund is
expected to have a broadly based investment portfolio composed of the equity
securities of companies in the designated nation or nations.
<PAGE>
POLICIES THAT APPLY TO THE
UNITED STATES, INTERNATIONAL AND GLOBAL FUNDS
United States Fund seeks to achieve its investment objective of enhanced
total investment return (price appreciation plus income) by investing in a
broadly based portfolio of equity securities selected by the Investment Adviser
from the publicly traded companies in the United States National Equity Index.
International and Global Funds seek to achieve their investment objectives of
enhanced total investment return (price appreciation plus income) by investing
in broadly based portfolios of equity securities selected by the Investment
Adviser from the publicly traded companies in all the Indices except the United
States National Equity Index and all the Indices including the United States
National Equity Index, respectively. Subject to the availability of assets for
investment, the Investment Adviser will select equity securities for a Fund's
portfolio from companies included in the appropriate Index or Indices, as the
case may be, or determine to sell securities in the Fund's portfolio, in an
attempt to equal the performance of the appropriate Index or Indices. Although
there can be no guarantee that a Fund's investment objective will be achieved,
each Fund is expected to have a broadly based investment portfolio composed of
the equity securities of companies in the designated nation or nations.
OTHER INVESTMENT POLICIES
The Trust, on behalf of each Fund, has adopted certain fundamental
investment restrictions which are enumerated in detail in the Statement of
Additional Information and which may be changed as to each Fund only by the vote
of a majority of the affected Fund's outstanding voting securities. Among these
restrictions, a Fund may not borrow money except from a bank, and then only up
to 1/3 of the current market value of its total assets (excluding the amount
borrowed) or purchase any securities which would cause more than 25% of the
market value of its total assets at the time of such purchase to be invested in
the securities of issuers having their principal business activities in the same
industry, provided that there is no limitation with respect to investments in
obligations issued or guaranteed by the U.S. Government or its agencies or
instrumentalities. Further, with respect to 75% of its assets, no more than 5%
of a Fund's total assets may be invested in the securities of a single issuer
and no Fund will purchase more than 10% of the outstanding voting securities of
a single issuer. None of the Funds has any current intention of borrowing for
leverage or speculative purposes. As a matter of nonfundamental policy, no Fund
will purchase or enter into an agreement to purchase securities while borrowings
exceed 5% of its total assets. Each Fund may not invest more than 15% of its net
assets in investments that are illiquid at the time of purchase.
<PAGE>
None of the Funds is intended to be a complete investment program by itself
and the prospective investor should take into account his or her objectives and
other investments when considering the purchase of any Fund's shares. The Funds
cannot eliminate risk or assure achievement of their objectives.
SPECIAL INVESTMENT CONSIDERATIONS -- RISKS
Repurchase Agreements. Each Fund may enter into repurchase agreements in order
to earn income on temporarily uninvested cash. A repurchase agreement is an
agreement under which the seller of securities agrees to repurchase and a Fund
agrees to resell the securities at a specified time and price. Each Fund may
enter into repurchase agreements only with large, well-capitalized domestic or
foreign banks or government securities dealers that meet Wright credit
standards. In addition, such repurchase agreements will provide that the value
of the collateral underlying the repurchase agreement will always be at least
equal to the repurchase price, including any accrued interest earned under the
repurchase agreement. In the event of a default or bankruptcy by a seller under
a repurchase agreement, the affected Fund will seek to liquidate such
collateral. However, the exercise of the right to liquidate such collateral
could involve certain costs, delays and restrictions and is not ultimately
assured. To the extent that proceeds from any sale upon a default of the
obligation to repurchase are less than the repurchase price, a Fund could suffer
a loss. There is no percentage limit on the amount of any Fund's investments in
repurchase agreements, except for the requirement that, under normal market
conditions, at least 80% of each Fund's net assets will be invested in equity
securities.
Temporary Defensive Investments. During periods of unusual market or economic
conditions, when Wright believes that investing for temporary defensive purposes
is appropriate, all or any portion of each Fund's assets may be held in cash
(including the foreign currency of the nation or nations in which such Fund
invests) or invested in short-term obligations, including but not limited to
obligations issued or guaranteed by the U.S. or any foreign government or any of
their respective agencies or instrumentalities; obligations of public
international agencies; commercial paper which at the date of investment is
rated A-1 by Standard & Poor's Ratings Group ("S&P") or P-1 by Moody's Investors
Service, Inc. ("Moody's"), or, if not rated by such rating organizations, is
deemed by the Investment Adviser to be of comparable quality; short-term
corporate obligations and other debt instruments which at the date of investment
are rated AA or better by S&P or Aa or better by Moody's or, if unrated, which
are deemed by the Investment Adviser to be of comparable quality; and
certificates of deposit, bankers' acceptances and time deposits of domestic or
foreign banks which are determined to be of high quality by the Investment
Adviser. Temporary investments may be denominated either in U.S. dollars or in
the currency of the nation in which the Fund primarily invests.
Foreign Investments. Investment in securities of foreign companies and
governments may involve certain risk considerations in addition to those arising
when investing in domestic securities. These considerations include the
possibility of currency exchange rate fluctuations and revaluation of
currencies, the existence of less publicly available information about foreign
issuers, different accounting, auditing and financial reporting standards, less
stringent securities regulation, non-negotiable brokerage commissions, different
tax provisions, political or social instability, war or expropriation. Moreover,
foreign stock and bond markets generally are not as developed and efficient as
those in the United States and, therefore, the volume and liquidity in those
markets may be less, and the
<PAGE>
volatility of prices may be greater, than in U.S. markets. Settlement of
transactions in foreign markets may be delayed beyond what is customary in U.S.
markets. These considerations generally are of greater concern in developing
countries. Further information regarding the nations in which the Funds will
invest may be found in the Appendix, beginning on page 41.
Each Fund may, but does not expect to, invest in foreign securities in the
form of American Depositary Receipts ("ADRs"), European Depositary Receipts
("EDRs"), International Depositary Receipts ("IDRs") or other similar securities
convertible into securities of foreign issuers. ADRs are receipts typically
issued by a United States bank or trust company evidencing ownership of the
underlying foreign securities. EDRs and IDRs are receipts typically issued by a
European bank or trust company evidencing ownership of the underlying foreign
securities.
Foreign Currency Transactions. Each Fund, other than the United States Fund, may
buy and sell foreign currencies. The value in U.S. dollars of investments quoted
or denominated in foreign currencies will be affected by changes in currency
exchange rates. As one way of managing currency exchange rate risk, a Fund may
enter into forward foreign currency exchange contracts, which are agreements to
purchase or sell foreign currencies at a specified price and date. A Fund will
usually enter into these contracts to fix the value of a security it has agreed
to buy or sell. A Fund may also use these contracts to hedge the value of a
security it already owns, particularly if it expects a decline in the value of
the currency in which the foreign security is quoted or denominated. The
underlying currency value of each Fund's forward contracts will be limited to
the value of securities to be bought and sold in that currency plus the value of
the Fund's portfolio securities quoted or denominated in such currency. There is
no other percentage limitation on any Fund's holdings of foreign currencies or
forward contracts, except for the requirement that, under normal market
conditions, at least 80% of the Fund's net assets will be invested in equity
securities. Contracts to sell foreign currency could limit any potential gain
which might be realized by a Fund if the value of the hedged currency increases.
Although a Fund will attempt to benefit from using forward contracts, the
success of its hedging strategy will depend on the Investment Adviser's ability
to predict accurately the future exchange rate between foreign currencies. The
ability to predict the direction of currency exchange rates involves skills
different from those used in selecting securities.
Lending Portfolio Securities. Each Fund may seek to increase its total return by
lending portfolio securities to broker-dealers or other institutional borrowers.
Such loans are required to be continuously secured by collateral in cash,
cash-equivalents and U.S. Government securities. During the existence of a loan,
a Fund will continue to receive the equivalent of the interest or dividends paid
by the issuer on the securities loaned and will also receive a fee, or all or a
portion of the interest, if any, on investment of the collateral. However, the
Fund may at the same time pay a transaction fee to such borrowers and
administrative expenses, such as finders fees to third parties. A Fund may
invest the proceeds it receives from a securities loan in the types of
securities in which it may invest. As with other extensions of credit there are
risks of delay in recovery or even loss of rights in the securities loaned if
the borrower of the securities fails financially. However, the loans will be
made only to organizations deemed by the Investment Adviser to be of good
standing and when, in the judgment
<PAGE>
of the Investment Adviser, the consideration which can be earned from
securities loans of this type justifies the attendant risk. The financial
condition of the borrower will be monitored by the Investment Adviser on an
ongoing basis and collateral values will be continuously maintained at no less
than 100% by "marking to market" daily. If the Investment Adviser decides to
make securities loans, it is intended that the value of the securities loaned
would not exceed 30% of the Fund's total assets.
THE INVESTMENT ADVISER
Each Fund has engaged The Winthrop Corporation ("Winthrop") to act as its
investment adviser pursuant to Investment Advisory Contracts. Pursuant to a
service agreement effective February 1, 1996 between Winthrop and its
wholly-owned subsidiary, Wright Investors' Service, Inc. ("Wright"), Wright,
acting under the general supervision of the Trust's Trustees, furnishes each
Fund with investment advice and management services. Winthrop supervises
Wright's performance of this function and retains its contractual obligations
under its Investment Advisory Contract with each Fund. The address of both
Winthrop and Wright is 1000 Lafayette Boulevard, Bridgeport, Connecticut. The
Trustees of the Trust are responsible for the general oversight of the conduct
of the Funds' business.
Wright is a leading independent international investment management and
advisory firm which, together with its parent, Winthrop, has more than 30 years'
experience. Its staff of over 150 people includes a highly respected team of 65
economists, investment experts and research analysts. In addition to the Funds,
Wright manages assets for bank trust departments, corporations, unions,
municipalities, eleemosynary institutions, professional associations,
institutional investors, fiduciary organizations, family trusts and individuals.
Wright is also the investment adviser to The Wright Managed Equity Trust, The
Wright Managed Income Trust, and The Wright Managed Blue Chip Series Trust (the
"Wright Funds"). Wright operates one of the world's largest and most complete
databases of financial information on over 13,000 domestic and international
corporations. The estate of John Winthrop Wright is the controlling shareholder
of Winthrop. At the end of 1995, Wright managed approximately $4 billion of
assets.
An Investment Committee of senior officers, all of whom are experienced
analysts, exercises disciplined direction and control over all investment
selections, policies and procedures for each Fund. The Committee, following
highly disciplined buy-and-sell rules, makes all decisions for the selection,
purchase and sale of all securities. The members of the Committee are as
follows:
PETER M. DONOVAN, CFA, President and Chief Executive Officer of Wright. Mr.
Donovan received a BA Economics, Goddard College and joined Wright from Jones,
Kreeger & Co., Washington, DC in 1966. Mr. Donovan is the president of The
Wright Managed Income Trust, The Wright Managed Equity Trust, The Wright Managed
Blue Chip Series Trust and The Wright EquiFund Equity Trust. He is also director
of EquiFund-Wright National Equity Fund, a Luxembourg SICAV. He is a member of
the New York Society of Security Analysts and the Hartford Society of Financial
Analysts.
<PAGE>
JUDITH R. CORCHARD, Chairman of the Investment Committee, Executive Vice
President -- Investment Management of Wright. Ms. Corchard attended the
University of Connecticut and joined Wright in 1960. She is a member of the New
York Society of Security Analysts and the Hartford Society of Financial
Analysts.
JATIN J. MEHTA, CFA, Executive Counselor and Director of Education of
Wright. Mr. Mehta received a BS Civil Engineering, University of Bombay, India
and an MBA from the University of Bridgeport. Before joining Wright in 1969, Mr.
Mehta was an executive of the Industrial Credit Investment Corporation of India,
a World Bank agency in India for financial assistance to private industry. He is
a Trustee of The Wright Managed Blue Chip Series Trust. He is a member of the
New York Society of Security Analysts and the Hartford Society of Financial
Analysts.
HARIVADAN K. KAPADIA, CFA, Senior Vice President -- Investment Analysis and
Information of Wright. Mr. Kapadia received a BA (hon.) Economics and Statistics
and MA Economics, University of Baroda, India and an MBA from the University of
Bridgeport. Before joining Wright in 1969, Mr. Kapadia was Assistant Lecturer at
the College of Engineering and Technology in Surat, India and Lecturer, B.J. at
the College of Commerce & Economics, VVNagar, India. He has published the
textbooks: "Elements of Statistics," "Statistics," "Descriptive Economics," and
"Elements of Economics." He was appointed Adjunct Professor at the Graduate
School of Business, Fairfield University in 1981. He is also a member of the New
York Society of Security Analysts and the Hartford Society of Financial
Analysts.
MICHAEL F. FLAMENT, CFA, Senior Vice President -- Investment and Economic
Analysis of Wright. Mr. Flament received a BS Mathematics, Fairfield University;
MA Mathematics, University of Massachusetts and an MBA Finance, University of
Bridgeport. He is a member of the New York Society of Security Analysts and the
Hartford Society of Financial Analysts.
JAMES P. FIELDS, CFA, Vice President and Investment Officer of Wright. Mr.
Fields received a B.S. Accounting, Fairfield University and an MBA Finance from
Pace University. He joined Wright in 1982 and is also a member of the New York
Society of Security Analysts.
Under the Funds' Investment Advisory Contracts, each Fund is required to
pay Winthrop a monthly advisory fee calculated at the annual rates (as a
percentage of average daily net assets) set forth in the following table.
Effective February 1, 1996, Winthrop will cause the Funds to pay to Wright the
entire amount of the advisory fee payable by each Fund under its Investment
Advisory Contract with Winthrop. However, for the 1996 fiscal year, Wright has
agreed to reduce its advisory fee and reallocate certain expenses, if such
action is necessary to keep each Fund's expense ratio at or below 2.00%.
ANNUAL % ADVISORY FEE RATES
Under $500 Million $500 Million to $1 Billion Over $1 Billion
------------------ --------------------------- ---------------
0.75% 0.73% 0.68%
<PAGE>
In addition to compensating Wright for its advisory services to the Funds,
the advisory fee schedule is intended to partially compensate Wright for the
maintenance of the National Equity Indices which form the basis for the
selection of securities for the Funds. Wright incurs significant expenses in
maintaining the Indices, including: the cost of employing persons to research
companies that are candidates for inclusion in or removal from an Index and to
enter data into Wright's computerized international database; compensation to
institutions in each country for research provided to Wright; expenses
associated with travel to the countries for which Wright maintains Indices; and
the costs of subscribing to numerous publications and making extensive use of
long-distance telecommunications facilities.
The need to compensate Wright for incurring these expenses in maintaining
the Indices distinguishes the Funds from traditional index funds with portfolios
that track independent published indices available at little or no cost to the
funds' managers.
Shareholders of the Funds who are also advisory clients of Wright may have
agreed to pay Wright a fee for such advisory services. Wright does not intend to
exclude from the calculation of the investment advisory fees payable to Wright
by such advisory clients the portion of the advisory fee payable by the Funds.
Accordingly, a client may pay an advisory fee to Wright in accordance with
Wright's customary investment advisory fee schedule charged to investment
advisory clients and at the same time, as a shareholder in a Fund, bear its
share of the advisory fee paid by the Fund to Wright as described above.
The following table sets forth the net assets of each Fund that was
offering its shares as at December 31, 1995 and the advisory fee rate paid from
each such Fund during the fiscal year ended December 31, 1995. At December 31,
1995, the Australasia, Austria, Canada, France, Ireland, United States, Global,
and International Funds had not commenced operations.
Aggregate Net Assets Fee Rate for the Fiscal Year
at 12/31/95 Ended 12/31/95
------------------ ----------------------
Belgium/Luxembourg $14,752,875 0.75%
Britain(1) 13,932,026 0.75%
Germany(2) 16,418,960 0.75%
Hong Kong 25,399,331 0.75%
Japan 21,630,983 0.75%
Mexico 32,493,042 0.75%
Netherlands(3) 7,217,537 0.75%
Nordic(4) 3,504,305 0.75%
Switzerland 7,628,255 0.75%
(1) Start of business, April 20, 1995.
(2) Start of business, April 19, 1995.
(3) To enhance the net income of the Netherlands Fund, Wright made a reduction
of its advisory fee in the amount of $2,868.
(4) To enhance the net income of the Nordic Fund, Wright made a reduction
of its advisory fee in the amount of $17,776 and was
allocated $13,004 of expenses related to the operation of the Fund.
<PAGE>
Pursuant to the Investment Advisory Contracts, Wright also furnishes for
the use of each Fund office space and all necessary office facilities, equipment
and personnel for servicing the investments of each Fund. Other than those
expenses expressly stated to be payable by Wright under its Investment Advisory
Contract, each Fund is responsible for all expenses relating to its operations
including, but not limited to, Wright's advisory fee; Eaton Vance's
administration fee; fees pursuant to the Trust's Rule 12b-1 distribution plan;
taxes, if any; custodian, legal and auditing fees; fees and expenses of Trustees
who are not members of, affiliated with or interested persons of Wright or Eaton
Vance; insurance premiums; trade association dues; expenses of obtaining
quotations for calculating the value of each Fund's net assets; printing and
other expenses which are not expressly designated as expenses of Wright or Eaton
Vance.
Wright places the portfolio security transactions for each Fund, which in
some cases may be effected in block transactions which include other accounts
managed by Wright. Wright provides similar services directly for bank trust
departments. Wright seeks to execute the Funds' portfolio security transactions
on the most favorable terms and in the most effective manner possible. Subject
to the foregoing, Wright may consider sales of shares of the Wright Funds as a
factor in the selection of broker-dealer firms to execute such transactions.
Portfolio changes may be made by Wright without regard to the length of time a
security has been held. However, it is not the intention of the Funds to engage
in trading for short-term profits. The frequency of each Fund's portfolio
transactions or turnover rate may vary from year to year depending on market
conditions. A high rate of portfolio turnover (100% or more) involves a
correspondingly greater amount of brokerage commissions and other costs which
must be borne directly by a Fund and thus indirectly by its shareholders. It may
also result in the realization of larger amounts of net short-term capital
gains, distributions from which are taxable to shareholders as ordinary income
and may, under certain circumstances, make it more difficult for a Fund to
qualify as a regulated investment company under the Internal Revenue Code.
The investment advisory fees payable by the Funds may be higher than the
advisory fees payable by many mutual funds; however, the Investment Adviser
believes that such fees are consistent with the average fees payable by mutual
funds which invest in foreign equity securities.
THE ADMINISTRATOR
Each Fund engages Eaton Vance as its administrator under an Administration
Agreement. Under the Administration Agreement, Eaton Vance is responsible for
managing the business affairs of each Fund, subject to the supervision of the
Trust's Trustees. Eaton Vance's services include recordkeeping, preparation and
filing of documents required to comply with federal and state securities laws,
supervising the activities of the Funds' custodian and transfer agent, providing
assistance in connection with the Trustees' and shareholders meetings and other
administrative services necessary to conduct each Fund's business. Eaton Vance
will not provide any investment management or
<PAGE>
advisory services to the Funds. For its services under the Administration
Agreement, each Fund is required to pay Eaton Vance a monthly administration fee
calculated at the annual rates (as a percentage of average daily net assets)set
forth in the following table.
ANNUAL % ADMINISTRATION FEE RATES
<TABLE>
Under $100 Million $250 Million Over
$100 Million to $250 Million to $500 Million $500 Million
------------ --------------- --------------- ------------
<S> <C> <C> <C>
0.10% 0.06% 0.03% 0.02%
</TABLE>
For the fiscal year ended December 31, 1995, each of the Funds
(Belgium/Luxembourg, Britain, Germany, Hong Kong, Japan, Mexico, Netherlands,
Nordic and Switzerland) paid an administration fee equivalent to 0.10%
(annualized) of average daily net assets.
Eaton Vance, its affiliates and its predecessor companies have been
primarily engaged in managing assets of individuals and institutional clients
since 1924 and managing, administering and marketing mutual funds since 1931.
Total assets under management are over $16 billion. Eaton Vance is a
wholly-owned subsidiary of Eaton Vance Corp. ("EVC"), a publicly held holding
company.
DISTRIBUTION EXPENSES
In addition to the fees and expenses payable by each Fund in accordance
with its Investment Advisory Contract and Administration Agreement, each Fund
pays for certain expenses pursuant to a Distribution Plan (the "Plan") designed
to meet the requirements of Rule 12b-1 under the 1940 Act and Article III,
Section 26 of the Rules of Fair Practice of the National Association of
Securities Dealers, Inc. (the "NASD").
The Trust has entered into a distribution contract with Wright Investors'
Service Distributors, Inc. ("WISDI" or the "Principal Underwriter"), a
wholly-owned subsidiary of Winthrop. Under this contract and the Plan, it is
currently intended that each Fund will pay to WISDI for distribution services
and personal and account maintenance services in connection with the Fund's
shares, an annual fee equal to .25% of each Fund's average daily net assets.
Appropriate adjustments to payments made pursuant to the Plan shall be made
whenever necessary to assure that no payment is made by a Fund which exceeds the
applicable maximum cap imposed on asset-based, front-end and deferred sales
charges by Section 26(d) of Article III of the Rules of Fair Practice of the
NASD.
<PAGE>
Pursuant to the Plan, the Trust, on behalf of each Fund, is authorized to
compensate WISDI for (1) distribution services and (2) personal and account
maintenance services performed and expenses incurred by WISDI in connection with
the Fund's shares. The amount of such compensation, including compensation for
personal and account maintenance services, paid during any one year shall not
exceed .25% of the average daily net assets of the Fund. Such compensation shall
be calculated and accrued daily and paid quarterly.
Distribution services and expenses for which WISDI may be compensated
pursuant to this Plan include, without limitation: compensation to and expenses
incurred by investment dealers, banks or other institutions ("Authorized
Dealers") and the officers, employees and sales representatives of Authorized
Dealers and of WISDI; allocable overhead, travel and telephone expenses; the
printing of prospectuses and reports for other than existing shareholders; the
preparation and distribution of sales literature and advertising; and all other
expenses (other than personal and account maintenance services as defined below)
incurred in connection with activities primarily intended to result in the sale
of the Funds' shares.
Personal and account maintenance services include, but are not limited to,
payments made to or on account of WISDI, Authorized Dealers and their respective
officers, employees and sales representatives who respond to inquiries of, and
furnish assistance to, shareholders concerning their ownership of Fund shares
and their accounts or who provide similar services not otherwise provided by or
on behalf of the Fund.
The Plan is a compensation plan which provides for the payment of a
specified distribution fee without regard to the distribution expenses actually
incurred by WISDI. Accordingly, an amount equal to 1/365 of the annual
distribution fee will be accrued on each day as an expense of each Fund, which
will reduce its net investment income. If the Plan were terminated or not
continued by the Trustees and no successor plan were adopted, the Funds would
cease to make distribution payments to WISDI. WISDI would be unable to recover
the amount of any unreimbursed distribution expenditures made by WISDI. However,
WISDI does not intend to make distribution expenditures at a rate that
materially exceeds the rate of compensation received under the Plan. Each Fund
made distribution expense payments (as an annualized percentage of average daily
net assets as follows: Belgium/Luxembourg (0.25%); Britain (0.25%); Germany
(0.25%); Hong Kong (0.25%); Japan (0.25%); Mexico (0.25%); Netherlands (0.10%);
Nordic (0.09%); and Switzerland (0.12%). WISDI reduced its distribution fees to
the Netherlands, Nordic and Switzerland Funds by $9,853, $5,925 and $9,347,
respectively.
HOW THE FUNDS VALUE THEIR SHARES
The Trust values the shares of each Fund once on each day the New York
Stock Exchange ("NYSE") is open as of the close of regular trading on the NYSE
(normally 4:00 p.m. New York time). The net asset value is determined in the
manner authorized by the Trustees of the Trust by the Funds' custodian (as agent
for the Funds) with the assistance of Wright for securities that
<PAGE>
involve valuation problems. Such determination is accomplished by dividing
the number of outstanding shares of each Fund into its net worth (the excess of
its assets over its liabilities).
Portfolio securities traded on more than one United States national
securities exchange or foreign securities exchange are valued by the Funds'
custodian at the last sale price on the business day as of which such value is
being determined at the close of the exchange representing the principal market
for such securities, unless those prices are deemed by Wright to be not
representative of market values. Securities which cannot be valued at such
prices, will be valued by Wright at fair value in accordance with procedures
adopted by the Trustees. Foreign currencies, options on foreign currencies and
forward foreign currency contracts will be valued at their last sales price as
determined by published quotations or as supplied by banks that deal in such
instruments. The value of all assets and liabilities expressed in foreign
currencies will be converted into U.S. dollar value at the mean between the
buying and selling rates of such currencies against U.S. dollars last quoted by
any major bank. If such quotations are not available, the rate of exchange will
be determined in good faith by or under procedures established by the Trustees.
Securities traded over-the-counter, unlisted securities and listed securities
for which closing sale prices are not available are valued at the mean between
latest bid and asked prices or, if such bid and asked prices are not available,
at prices supplied by a pricing agent selected by Wright, unless such prices are
deemed by Wright not to be representative of market values at the close of
business of the NYSE. Securities for which market quotations are unavailable,
restricted securities, securities for which prices are deemed by Wright not to
be representative of market values and other assets will be appraised at their
fair value as determined in good faith according to guidelines established by
the Trustees of the Trust. Short-term obligations with remaining maturities of
sixty days or less are valued at amortized cost, which the Trustees have
determined approximates market value. Options traded on exchanges and
over-the-counter will be valued at the last current sales price on the market
where such option is principally traded. Over-the-counter and listed options for
which a last sale price is not available will be valued on the basis of
quotations supplied by dealers who regularly trade such options or if such
quotations are not available or deemed by Wright not to be representative of
market values, at fair value.
Trading in securities on European and Far Eastern securities exchanges and
over-the-counter markets is normally completed well before the close of business
on each business day in New York (i.e., a day on which the NYSE is open for
trading). In addition, European or Far Eastern securities trading generally or
in a particular country or countries may not take place on all business days in
New York. Furthermore, trading takes place in Japanese markets on certain
Saturdays and in various foreign markets on days which are not business days in
New York and on which the Funds' net asset values are not calculated. Such
calculation does not take place contemporaneously with the determination of the
prices of the majority of the portfolio securities used in such calculation.
Events affecting the values of portfolio securities that occur between the time
their prices are determined and the close of the NYSE will not be reflected in a
Fund's calculation of net asset value unless Wright deems that the particular
event would materially affect net asset value, in which case an adjustment will
be made.
<PAGE>
HOW TO BUY SHARES
Shares of each Fund are sold without a sales charge at the net asset value
next determined after the receipt of a purchase order as described below. The
minimum initial investment in each Fund is $1,000, although this will be waived
for investments in 401(k) tax-sheltered retirement plans. There is no minimum
amount required for subsequent purchases. The $1,000 minimum initial investment
is also waived for Bank Draft Investing accounts which may be established with
an investment of $50 or more with a minimum of $50 applicable to each subsequent
investment. Each Fund reserves the right to reject any order for the purchase of
its shares or to limit or suspend, without prior notice, the offering of its
shares.
Shares of each Fund may be purchased or redeemed through an Authorized
Dealer. Charges may be imposed by the institution for its services. Any such
charges could constitute a material portion of a smaller account. Shares may be
purchased or redeemed directly from or with each Fund without imposition of any
charges other than those described in this Prospectus.
Purchases By Wire: Investors may purchase shares by transmitting
immediately available funds (Federal Funds) by wire to:
Boston Safe Deposit and Trust Company
One Boston Place
Boston, MA
ABA: 011001234
Account 081345
Further Credit: (Name of Fund)
(Include your Fund account number)
Initial purchase -- Upon making an initial investment by wire, an investor
must first telephone the Funds' Order Department at (800) 225-6265, ext. 3, to
advise of the action and to be assigned an account number. If this telephone
call is not made, it may not be possible to process the order promptly. In
addition, an Account Instructions form, which is available through WISDI, should
be promptly forwarded to First Data Investor Services Group (the "Transfer
Agent") at the following address:
WRIGHT MANAGED INVESTMENT FUNDS
BOS 725
P.O. Box 1559
Boston, Massachusetts 02104
<PAGE>
Subsequent Purchases -- Additional investments may be made at any time
through the wire procedure described above. The Funds' Order Department must be
immediately advised by telephone at (800) 225-6265, ext. 3 of each transmission
of funds by wire.
Purchases by Mail: Initial Purchases -- The Account Instructions form
available through WISDI should be completed by an investor, signed and mailed
with a check, Federal Reserve Draft, or other negotiable bank draft, drawn on a
U.S. bank and payable in U.S. dollars, to the order of the Fund whose shares are
being purchased and mailed to the Transfer Agent at the above address.
Subsequent Purchases -- Additional purchases may be made at any time by an
investor by check, Federal Reserve draft, or other negotiable bank draft, drawn
on a U.S. bank and payable in U.S. dollars, to the order of the relevant Fund at
the above address. The sub-account, if any, to which the subsequent purchase is
to be credited should be identified together with the sub-account number and,
unless otherwise agreed, the name of the sub-account.
Bank Draft Investing -- for regular share accumulation: Cash investments of
$50 or more may be made through the shareholder's checking account via bank
draft each month or quarter. The $1,000 minimum initial investment and small
account redemption policy are waived for Bank Draft Investing accounts.
Purchase through Exchange of Securities: Investors wishing to purchase
shares of a Fund through an exchange of portfolio securities should contact
WISDI to determine the acceptability of the securities and make the proper
arrangements. The shares of a Fund may be purchased, in whole or in part, by
delivering to the Funds' custodian securities that meet the investment objective
and policies of the relevant Fund, have readily ascertainable market prices and
quotations and which are otherwise acceptable to the Investment Adviser and the
Fund. The Trust will only accept securities in exchange for shares of the Funds
for investment purposes and not as agent for the shareholders with a view to a
resale of such securities. The Investment Adviser, WISDI and the Funds reserve
the right to reject all or any part of the securities offered in exchange for
shares of a Fund. An investor who wishes to make an exchange should furnish to
WISDI a list with a full and exact description of all of the securities which he
proposes to deliver. WISDI or the Investment Adviser will specify those
securities which the Fund is prepared to accept and will provide the investor
with the necessary forms to be completed and signed by the investor. The
investor should then send the securities, in proper form for transfer, with the
necessary forms to the Funds' Custodian and certify that there are no legal or
contractual restrictions on the free transfer and sale of the securities.
Exchanged securities will be valued at their fair market value as of the date
that the securities in proper form for transfer and the accompanying purchase
order are both received by the Trust, using the procedures for valuing portfolio
securities as described under "How the Funds Value their Shares" on page 29.
However, if the NYSE or appropriate foreign stock exchange is not open for
unrestricted trading on such date, such valuation shall be on the next day on
which the NYSE or foreign stock exchange is
<PAGE>
so open. In any event, all valuations are determined in good faith by or at
the direction of the Trust's Trustees. The net asset value used for purposes of
pricing shares sold under the exchange program will be the net asset value next
determined following the receipt of both the securities offered in exchange and
the accompanying purchase order. Securities to be exchanged must have a minimum
aggregate value of $5,000. An exchange of securities is a taxable transaction
which may result in realization of a gain or loss for federal and state income
tax purposes.
HOW SHAREHOLDER ACCOUNTS ARE MAINTAINED
Upon the initial purchase of a Fund's shares, an account will be opened for
the account or sub-account of an investor. Subsequent investments may be made at
any time by mail to the Transfer Agent or by wire, as noted above. There is
currently a $500 minimum account balance which is required to be maintained by
Fund shareholders. The Trust has the right, upon 60 days' notice to
shareholders, to involuntarily redeem shares, at the net asset value in accounts
which do not meet this minimum account requirement. However, no such redemption
would be required by a Fund if the cause of the low account balance was a
reduction in the net asset value of Fund shares. Confirmation statements
indicating total shares of each Fund owned in the account or each sub-account
will be mailed to investors quarterly and at the time of each purchase (other
than reinvestment of dividends or distributions) or redemption. The issuance of
shares will be recorded on the books of the relevant Fund. The Trust does not
issue share certificates.
DISTRIBUTIONS AND DIVIDENDS BY THE FUNDS
The Trust intends to pay dividends from the net investment income of each
Fund as shown on the Fund's books at least annually. Any realized net capital
gains from the sale of securities in a Fund's portfolio or from transactions in
forward contracts or options (reduced by any available capital loss
carryforwards from prior years) will be also paid at least annually.
Shareholders may reinvest dividends, and accumulate capital gains distributions,
if any, in additional shares of the same Fund at the net asset value as of the
ex-dividend date. Unless shareholders otherwise instruct, all distributions and
dividends will be automatically invested in additional shares of the same Fund.
Alternatively, shareholders may reinvest capital gains distributions and direct
that dividends be paid in cash, or that both dividends and capital gains
distributions be paid in cash.
TAXES
Under the Internal Revenue Code of 1986, as amended (the "Code"), each Fund
is treated as a separate entity for federal income tax purposes. Each Fund has
qualified and elected or intends to qualify and elect to be treated and to
continue to qualify as a regulated investment company for federal income tax
purposes. In order to so qualify, each Fund must meet certain requirements with
<PAGE>
respect to sources of income, diversification of assets, and distributions to
shareholders. Each Fund does not pay federal income or excise taxes to the
extent that it distributes to its shareholders all of its net investment income
and net realized capital gains in accordance with the timing requirements of the
Code. None of the Funds will be subject to income, corporate excise or franchise
taxation in Massachusetts in any year in which it qualifies as a regulated
investment company under the Code.
For federal income tax purposes, a shareholder's distributions from a
Fund's net investment income and net short-term capital gains as well as
distributions of certain foreign currency gains is taxable as ordinary income,
whether received in cash or reinvested in additional shares. It is not expected
that any portion of a Fund's distributions (with the possible exception of
certain distributions from Global Fund and/or United States Fund) will qualify
for the corporate dividends-received deduction. A shareholder's distribution
from a Fund's net long-term capital gains is taxable as long-term capital gains
whether received in cash or reinvested in additional shares, regardless of how
long the shareholder has held the Fund shares. Distributions on Fund shares
shortly after their purchase, although they may be attributable to taxable
income and/or capital gains that had been realized but not distributed at the
time of purchase and therefore may be in effect a return of a portion of the
purchase price, are generally subject to federal income tax. Distributions
declared by a Fund in October, November or December of any calendar year to
shareholders of record as of a date in such month and paid the following January
will be treated for federal income tax purposes as having been received by the
shareholder on December 31 of the year in which they are declared.
In order to avoid federal excise tax, the Code requires that each Fund
distribute (or be deemed to have distributed) by December 31 of each calendar
year at least 98% of its ordinary income for such year, at least 98% of the
excess of its realized capital gains over its realized capital losses for the
one-year period ending on October 31 of such year, after reduction by any
available capital loss carryforwards, and 100% of any income and capital gains
from the prior year (as previously computed) that was not paid out during such
year and on which the Fund paid no federal income tax.
A Fund may be subject to foreign withholding or other foreign taxes with
respect to income (possibly including, in some cases, capital gains) that it
derives from investments in foreign securities and may make an election under
Section 853 of the Code that would allow shareholders to claim a credit or
deduction on their federal income tax returns for (and treat as additional
amounts distributed to them) their pro rata portion of qualified taxes paid by
such Fund to foreign countries. This election may be made only if more than 50%
of the assets of the Fund at the close of a taxable year consists of securities
in foreign corporations. Availability of foreign tax credits or deductions for
shareholders is subject to certain additional restrictions and limitations at
the Fund and shareholder levels.
Annually, shareholders of each Fund that are not exempt from information
reporting requirements will receive information on Form 1099 to assist in
reporting the prior calendar year's distributions and redemptions (including
exchanges) on federal and state income tax returns. Shareholders should consult
their own tax advisers with respect to the tax status of distributions from the
<PAGE>
Funds or the redemption (including an exchange) of Fund shares in their own
states and localities. Under Section 3406 of the Code, individuals and other
non-exempt shareholders will be subject to backup withholding of 31% on taxable
distributions made by a Fund and on the proceeds of redemptions (including
exchanges) of shares of the Fund if they fail to provide to a Fund their correct
taxpayer identification numbers and certain certifications required by the
Internal Revenue Service or if the Internal Revenue Service or a broker notifies
a Fund that the number furnished by the shareholder is incorrect or that the
shareholder is otherwise subject to such withholding. If such withholding is
applicable, such distributions and proceeds will be reduced by the amount of tax
required to be withheld.
Special tax rules apply to IRA accounts (including penalties on certain
distributions and other transactions) and to other special classes of investors,
such as tax-exempt organizations, banks or insurance companies. Investors should
consult their tax advisers for more information.
Shareholders who are not United States persons should also consult their
tax advisers about the potential application of certain U.S. taxes, including a
U.S. withholding tax at the rate of 30% (or lower treaty rate) on amounts
treated as ordinary income distributions to them and of foreign taxes to their
investment in the Funds.
HOW TO EXCHANGE SHARES
Shares of any Fund may be exchanged for shares of the other funds in The
Wright Managed Equity Trust, The Wright Managed Income Trust or The Wright
EquiFund Equity Trust at net asset value at the time of the exchange.
This exchange offer is available only in states where shares of such other
fund may be legally sold. Each exchange is subject to a minimum initial
investment of $1,000 in each fund.
Shareholders purchasing shares from an Authorized Dealer may effect
exchanges between the above funds through their Authorized Dealer who will
transmit information regarding the requested exchanges to the Transfer Agent.
First Data Investor Services Group makes exchanges at the next determined
net asset value after receiving a request in writing mailed to the address
provided under "How to Buy Shares." Telephone exchanges are also accepted if the
exchange involves shares valued at less than $50,000 and on deposit with First
Data Investor Services Group. All shareholders are automatically eligible for
the telephone exchange privilege. To effect such exchanges, call First Data
Investor Services Group at (800) 262-1122 or, within Massachusetts, (617)
573-9403, Monday through Friday, 9:00 a.m. to 4:00 p.m. (Eastern time). All such
telephone exchanges must be registered in the same name(s) and with the same
address and social security or other taxpayer identification number as are
registered with the Fund from which the exchange is being made. See "How to
<PAGE>
Redeem or Sell Shares -- By Telephone" for a description of the procedures the
Funds employ to ensure that instructions communicated by telephone are genuine.
None of the Trust, the Funds, the Principal Underwriter or First Data Investor
Services Group will be responsible for the authenticity of exchange instructions
received by telephone, provided that reasonable procedures have been followed to
confirm that instructions communicated are genuine, and if such procedures are
not followed, the Trust, the Funds, the Principal Underwriter or First Data
Investor Services Group may be liable for any losses due to unauthorized or
fraudulent telephone instructions. Telephone instructions will be tape recorded.
In times of drastic economic or market changes, a telephone exchange may be
difficult to implement. When calling to make a telephone exchange, shareholders
should have their account number and social security or other taxpayer
identification numbers. Generally, shareholders will be limited to four
Telephone Exchange round-trips per year and a Fund may refuse requests for
Telephone Exchanges in excess of four round-trips (a round-trip being the
exchange out of the Fund into another Wright Fund, and then back to the Fund).
The Trust believes that use of the Exchange Privilege by investors utilizing
market-timing strategies adversely affects the Funds. Therefore, the Trust
generally will not honor requests for exchanges, including Telephone Exchanges,
by shareholders identified by the Trust as "market-timers."
Additional documentation may be required for exchange requests if shares
are registered in the name of a corporation, partnership or fiduciary. Any
exchange request may be rejected by a Fund or the Principal Underwriter at its
discretion. The exchange privilege may be changed or discontinued without
penalty at any time. Shareholders will be given 60 days' prior notice of any
termination or material amendment of the exchange privilege. Contact the
Transfer Agent, First Data Investor Services Group, for additional information
concerning the Exchange Privilege.
A shareholder should read the prospectus of the other fund and consider the
differences in objectives and policies before making any exchange. Shareholders
should be aware that for federal and state income tax purposes, an exchange is a
taxable transaction which may result in recognition of a gain or loss.
HOW TO REDEEM OR SELL SHARES
Shares of a Fund will be redeemed at the net asset value next determined
after receipt of a redemption request in good order as described below. Proceeds
will be mailed within seven days of such receipt. However, at various times a
Fund may be requested to redeem shares for which it has not yet received good
payment. If the shares to be redeemed represent an investment made by check,
each Fund will delay payment of the redemption proceeds until the check has been
collected which, depending upon the location of the issuing bank, could take up
to 15 days. For federal and state income tax purposes, a redemption of shares is
a taxable transaction which may result in recognition of a gain or loss.
Through Authorized Dealers: Shareholders using Authorized Dealers may
redeem shares through such Dealers.
<PAGE>
By Telephone: All shareholders are automatically eligible for the telephone
redemption privilege, unless the account application indicates otherwise.
Shareholders may effect a redemption by calling the Funds' Order Department at
(800) 225-6265, (8:30 a.m. to 4:00 p.m. Eastern time). In times when the volume
of telephone redemptions is heavy, additional phone lines will automatically be
added by the Funds. However, in times of drastic economic or market changes, a
telephone redemption may be difficult to implement. When calling to make a
telephone redemption, shareholders should have available their account number. A
telephone redemption will be made at that day's net asset value, provided that
the telephone redemption request is received prior to 4:00 p.m. on that day.
Telephone redemption requests received after 4:00 p.m. will be effected at the
net asset value determined for the next trading day. Payment will be made by
check to the address of record or, if an appropriate election was made on the
application form, by wire transfer to the bank account or address designated.
Payment is normally made within one business day after receipt of the redemption
request in good order. Trust Departments may make redemptions and deposit the
proceeds in checking or other accounts of clients, as specified in instructions
furnished to the Funds at the time of initially purchasing Fund shares. None of
the Trust, the Funds, the Principal Underwriter or First Data Investor Services
Group will be responsible for the authenticity of redemption instructions
received by telephone, provided that reasonable procedures have been followed to
confirm that instructions communicated are genuine, and if such procedures are
not followed, the Trust, the Funds, the Principal Underwriter or First Data
Investor Services Group may be liable for any losses due to unauthorized or
fraudulent telephone instructions.
Also, shareholders may effect a redemption by calling the Funds' Transfer
Agent, First Data Investor Services Group, at (800) 262-1122 (8:30 a.m. to 4:00
p.m. Eastern time) if the redemption involves shares valued at less than $50,000
and on deposit with First Data Investor Services Group. Payment will be made by
check to the address of record. Telephone instructions will be tape recorded.
By Mail: A shareholder may also redeem all or any number of shares at any
time by mail by delivering the request with a stock power to the Transfer Agent,
First Data Investor Services Group, Wright Managed Investment Funds, BOS725,
P.O. Box 1559, Boston, Massachusetts 02104. As in the case of telephone
requests, payments will normally be made within one business day after receipt
of the redemption request in good order. Good order means that written
redemption requests or stock powers must be endorsed by the record owner(s)
exactly as the shares are registered and the signature(s) must be guaranteed by
a member of either the Securities Transfer Association's STAMP program or the
NYSE's Medallion Signature Program, or certain banks, savings and loan
institutions, credit unions, securities dealers, securities exchanges, clearing
agencies and registered securities associations as required by a regulation of
the Securities and Exchange Commission and acceptable to First Data Investor
Services Group. In addition, in some cases, good order may require furnishing of
additional documents such as where shares are registered in the name of a
corporation, partnership or fiduciary.
<PAGE>
Redemption Fee: For shares purchased after December 31, 1995, a redemption
fee of 1 1/2% of the redemption proceeds will be assessed on the redemption of
shares redeemed within 30 days of purchase. This redemption fee will be paid by
each redeeming shareholder to, and retained by, the respective Fund.
The right to redeem shares of a Fund and to receive payment therefor may be
suspended at times (a) when the securities markets are closed, other than
customary weekend and holiday closings, (b) when trading is restricted for any
reason, (c) when an emergency exists as a result of which disposal by a Fund of
securities owned by it is not reasonably practicable or it is not reasonably
practicable for a Fund fairly to determine the value of its net assets, or (d)
when the Securities and Exchange Commission by order permits a suspension of the
right of redemption or a postponement of the date of payment or redemption.
Due to the relatively high costs of maintaining small accounts, each Fund
reserves the right to redeem fully at net asset value any Fund account
(including accounts of clients of fiduciaries) which at any time, due to
redemptions or exchanges, amounts to less than $500 for that Fund; any
shareholder who makes a partial redemption which reduces his account in a Fund
to less than $500 would be subject to the Fund's right to redeem such account.
Prior to the execution of any such redemption, notice will be sent and the
shareholder will be allowed 60 days from the date of notice to make an
additional investment to meet the required minimum of $500 per Fund. However, no
such redemption would be required by a Fund if the cause of the low account
balance was a reduction in the net asset value of Fund shares.
PERFORMANCE INFORMATION
From time to time a Fund may publish its yield and/or average annual total
return in advertisements and communications to shareholders. The current yield
for a Fund will be calculated by dividing the net investment income per share
during a recent 30-day period by the maximum offering price per share of the
Fund on the last day of the period. The results are compounded on a bond
equivalent (semi-annual) basis and then annualized. A Fund's average annual
total return is determined by computing the annual percentage change in value of
$1,000 invested at the public offering price (i.e., net asset value per share)
for specified periods ending with the most recent calendar quarter, assuming
reinvestment of all dividends and distributions at net asset value.
Investors should note that the investment results of a Fund will fluctuate
over time, and any presentation of a Fund's current yield or total return for
any prior period should not be considered as a representation of what an
investment may earn or what an investor's yield or total return may be in any
future period. The reduction of fees or assumption of expenses by Wright, WISDI
or Eaton Vance will result in a Fund's higher performance.
<PAGE>
OTHER INFORMATION
The Trust is a business trust established under Massachusetts law and is an
open-end management investment company. The Trust was established pursuant to a
Declaration of Trust dated July 14, 1989, as amended and restated December 20,
1989 and further amended April 13, 1995 to change the name of the Trust from
EquiFund - Wright National Fiduciary Equity Funds to The Wright EquiFund Equity
Trust. The Trust consists of seventeen series. Each Fund's activities are
supervised by the Trustees of the Trust.
Although each Fund is offering only its own shares, since the Funds use
this combined Prospectus, it is possible that a Fund might become liable for a
misstatement or omission in this Prospectus regarding another Fund. The Trustees
have considered this factor in approving the use of a combined Prospectus.
The Trust's shares of beneficial interest have no par value and may be
issued in two or more series or "funds." The Trustees are empowered by the
Declaration of Trust and By-laws to change the name of any existing series and
to create additional series without obtaining shareholder approval. The Trust's
shares may be issued in an unlimited number by its Trustees. Each share of a
series represents an equal proportionate beneficial interest in that series and,
when issued and outstanding, the shares are fully paid and non-assessable by the
relevant series. Shareholders are entitled to one vote for each full share held.
Fractional shares may be voted in proportion to the amount of the net asset
value of a series which they represent. Voting rights are not cumulative, which
means that the holders of more than 50% of the shares voting for the election of
Trustees of the Trust can elect 100% of the Trustees and, in such event, the
holders of the remaining less than 50% of the shares voting on the matter will
not be able to elect any Trustees. As of March 31, 1996, Resources Trust Co.,
P.O. Box 3865, Englewood, CO was the record holder of 92.3%, 98.1%, 97.8%,
63.9%, 61.7%, 65.7%, 66.5% and 81.3%, respectively, of the outstanding shares of
the Belgium/Luxembourg, Britain, Germany, Hong Kong, Japan, Netherlands, Nordic,
and Switzerland Funds held on behalf of its clients; Charles Schwab & Co., Inc.,
101 Montgomery Street, San Francisco, CA was the record holder of 26.8%, and
42.6%, respectively, of the outstanding shares of the Hong Kong and Mexico Funds
held on behalf of its clients. Shares will be voted by individual series except
to the extent required by the 1940 Act. Shares have no preemptive or conversion
rights and are freely transferable. Upon liquidation of a series, shareholders
are entitled to share pro rata in the net assets of that series available for
distribution to shareholders, and in any general assets of the Trust not
allocated to a particular series by the Trustees.
As permitted by Massachusetts law, there will normally be no meetings of
shareholders for the purpose of electing Trustees unless and until such time as
less than a majority of the Trustees holding office have been elected by
shareholders. In such an event the Trustees then in office will call a
shareholders' meeting for the election of Trustees. Except for the foregoing
circumstances and unless removed by action of the shareholders in accordance
with the Trust's By-laws, the Trustees shall continue to hold office and may
appoint successor Trustees.
<PAGE>
The Trust's By-laws provide that no person shall serve as a Trustee if
shareholders holding two-thirds of the outstanding shares have removed him from
that office either by a written declaration filed with the Trust's custodian or
by votes cast at a meeting called for that purpose. The Trustees shall promptly
call a meeting of the shareholders for the purpose of voting upon a question of
removal of a Trustee when requested so to do by the record holders of not less
than 10% of the Trust's outstanding shares.
TAX-SHELTERED RETIREMENT PLANS
The Funds are available for investments by Individual Retirement Account
Plans for individuals and their non-employed spouses, Pension and Profit Sharing
Plans for self-employed individuals, corporations and non-profit organizations,
or 401(k) tax-sheltered retirement plans. The minimum initial purchase of $1,000
per Fund will be waived for investments by 401(k) plans.
For more information, contact your Authorized Dealer or write to:
Wright Investors' Service Distributors, Inc.
1000 Lafayette Boulevard
Bridgeport, Connecticut 06604
or call: (800) 888-9471
<PAGE>
APPENDIX
INFORMATION CONCERNING THE NATIONS
IN WHICH THE FUNDS WILL INVEST
The Funds (other than the United States Fund) will invest in securities
quoted or denominated in the currencies of countries other than the United
States. The following summaries are designed to provide a general discussion of
economic and other conditions in each of these countries. The information in
these summaries has been derived from sources that Wright believes to be
reliable, but the data has not been independently verified.
International investments, like many things, have both benefits and risks.
The benefits are real and can be quite substantial. One of the key benefits is
diversification, as the correlation among international securities tend to be
much lower than the correlation among securities within any single country.
There are also risks to be considered. Investors in any single country should
understand the economic potential of investments in such a country as well as
the relationship of the currency of that country to the investor's own currency.
Several other items must be considered by the investor including the reliability
of information about the various companies within the country, legal
restrictions, and the economic and social characteristics that are unique to
each country. See Appendix B in the Statement of Additional Information for
additional economic and financial information about countries in which the Funds
may invest. The Wright EquiFunds limit their investment consideration to the
world's major industrialized nations and to those nations for which
WORLDSCOPE(R), the information database of Wright Investors' Service, provides
comprehensive and reliable investment information. Wright Investors' Service
believes that WORLDSCOPE(R) has counteracted the lack of quality information
which has been a major problem for the international investor.
POLITICAL AND ECONOMIC CONSIDERATIONS
Potential international investors must be aware of political and economic
actions which might change the investment environment. For example, the members
of the European Union (EU) (successor to the European Communities EC, the Common
Market), which is the designation of three organizations (the European Economic
Community or EEC, the European Coal and Steel Community, and the European Atomic
Energy Community) with common membership and, since July of 1967, a common
executive, have agreed that a single European market will remove all barriers to
free trade and free movement of capital and people. The effect of European
<PAGE>
unification will be to create a major economic trading unit composed of the
entire fifteen members of the EU (Austria, Belgium, Denmark, Finland, France,
Germany, Great Britain, Greece, Ireland, Italy, Luxembourg, Netherlands,
Portugal, Spain, and Sweden). The macroeconomic effects of such unification
could be substantially higher economic growth. Economies of scale and lower
costs could lead to reduced inflation while fiscal reform and budget restraint
might reduce budget deficits despite an initial higher rate of unemployment. It
is not possible to predict the precise impact of European unity or if all the
program goals incorporated in the Maastricht Treaty of 1991 will be achieved.
However, Wright believes that European economic integration offering substantial
long-term economic benefits to the member nations will ultimately come to pass.
The European Currency Unit (ECU) is the official accounting unit of the EEC
and, as such, is used by member nations for budgetary purposes in setting common
agricultural prices and in the accounts of the EU institutions since the
implementation of the European Monetary System (EMS) in March of 1979. The major
aim of the EMS is to achieve close monetary and economic cooperation among the
member countries of the EU and, in particular, to create a zone of monetary
stability. The ECU is an open-basket currency whose value is based on the
weighted value of the member currencies with weights based on each member's
share of intra-Europe trade and the relative size of its GDP. Each member nation
values its currency in terms of the ECU. Nine of the member currencies (Dutch
guilder, German mark, Austrian schilling, Belgian franc, Portuguese escudo,
Danish prone, French franc, Irish punt and Spanish peseta) form the EMS grid. If
an EMS grid member's currency deviates more than 15% (2.25% for the mark and
guilder) of the agreed central rates against the other members of the mechanism,
the member nation must take steps to correct the problem or to either devalue or
revalue its currency. Following the currency turmoil of 1992, Great Britain and
Italy withdrew from the EMS's exchange Rate mechanism effectively devaluing the
pound and the lira. They have remained outside the EMS but continue to measure
the value of their currency against the EMS grid. Spain and Italy devalued their
currency against the EMS grid in March of 1995.
The "official ECU" is used between European monetary authorities to settle
debts they incur with one another as a result of their interventions in the
currency markets. There is also a private or commercial ECU, the use of which
has increased substantially over the last few years. Its stature increased with
the issue of the first Euro-ECU bonds in 1981, and it is now one of the most
widely used currencies for international bond issuance. The ECU enjoys greater
popularity than was envisioned at its inception in 1979. It is known far beyond
Europe as a currency unit freely convertible into all major currencies. It is
widely used to price, invoice, and settle transactions involving goods and
services. Thousands of Europeans now use ECU's to buy cars, pay hotel bills or
transact other business on ECU credit cards and on ECU-denominated checking
accounts or travelers checks.
There are other examples of political and economic events, some quite
dramatic, which impact the investment environment. In the past decade, there has
been world-wide movement towards "privatization" of government owned and
operated companies. Examples include the water companies
<PAGE>
in the Great Britain, the banks in France, etc. The economies of Austria
and Portugal are especially expected to benefit from privatization in the coming
years.
Recent dramatic developments in the former Soviet Union, the Eastern Bloc
nations, China, Central America, and South Africa can be expected to have a
major, but as yet not fully predictable, impact on the world in general and the
nations in which the Fund will invest in particular. It remains to be seen if
the fledgling democracies can successfully cope with the many economic
dislocations which have accompanied the fall of the old order. It also remains
to be seen what reactions other nations will have towards a reduced Soviet
military threat and potential for increased trade.
The dismantling of the Berlin Wall in November of 1989 led to the economic
unification of the economically weak East Germany with the economically strong
West Germany in July 1990. This was followed by the political unification on
October 3, 1990.
The European Free Trade Association (EFTA) consisting of Austria, Iceland,
Norway, Portugal, Sweden, and Switzerland with associated member Finland, was
created in January of 1960 with the objective to gradually reduce customs duties
and quantitative restrictions between members on industrial products. All
tariffs and quotas were eliminated by year-end 1966. EFTA entered into
free-trade agreements with the EU in January of 1973. Trade barriers were
removed by July 1976. EFTA is expected to expand to include Central European
countries. The world-wide trade movement towards increasingly Free Market
economies has been helped by the establishment of the World Trade Organization
(WTO) successor to GATT.
Members of the North Atlantic Treaty Organization (NATO) (Belgium, Canada,
Denmark, France, Great Britain, Iceland, Italy, Luxembourg, Netherlands, Norway,
Portugal, the United States, Greece, Turkey, Germany, and Spain) agreed to
settle disputes by peaceful means, to develop individual and collective capacity
to resist armed attack, and to regard an attack on one as an attack on all. With
the demise of the former Warsaw Pact nations of the communist world, political
tensions in Europe appear to have materially eased.
The Organization for Economic Cooperation and Development (OECD) was
established in September of 1961 to promote economic and social welfare in
member countries and to stimulate and harmonize efforts on behalf of developing
nations. The OECD collects and disseminates from its Paris headquarters economic
and environmental information to members which represent nearly all the
industrialized "free market" countries: Australia, Austria, Belgium, Great
Britain, Iceland, Ireland, Italy, Japan, Luxembourg, Netherlands, New Zealand,
Norway, Portugal, Spain, Sweden, Switzerland, Turkey, the United States and with
Yugoslavia as an associate member.
<PAGE>
RESTRICTIONS ON FOREIGN INVESTMENT
Another issue which must be addressed by global investors is the
possibility of investment restrictions. Some countries impose restrictions on
foreigners investing in their country. These restrictions may limit the amount
of foreign investment or in some cases create a separate class of securities
which may be purchased by foreigner investors at a different price from similar
securities purchased by domestic investment. The countries in which the Funds
will invest do not impose restrictions on portfolio investments although Sweden
and Switzerland do have two classes of shares (see below) while Sweden and Japan
do have some special regulations which the Fund must comply with. Other
potential pitfalls to foreign investment include high transaction costs,
including brokerage fees, stock turnover taxes, exchange rates, and
miscellaneous costs. These vary widely by type of investment and by country.
Consideration must also be given to withholding taxes. Most countries levy
non-refundable withholding taxes on interest and dividend income earned by
non-residents on domestic investments. The withholding tax rates disclosed below
are subject to changes. While the existence of reciprocal tax treaties between
many countries may to some extent mitigate that impact, such treaties are
frequently not available to institutions such as open-ended mutual funds. Note
that unlike in the U.S. and Canada, where dividends are geneally paid quarterly,
dividends in most nations are paid only once (annually) or twice (semi-annually)
a year. Liquidity or the ability of an investor to dispose of his or her
holdings quickly at a reasonable cost may be a special concern with foreign
investments. Sometimes there may be difficulties involved in selling instruments
in those countries where secondary markets are not broad or actively traded.
Political or sovereign risk is still another concern. This addresses the issue
of whether the government may take action which would reduce the value of an
investor's assets. The industrial nations involved with the Funds are basically
stable and, except as noted under Political and Economic Considerations above,
it is not believed that there would be a significant change due to an election
or revolution. However, one nation, Hong Kong, will be taken over by the Chinese
government in 1997 and there is considerable uncertainty as to the impact of
such a takeover.
The size of the markets is another concern. In December of 1994, FT
Actuaries/Goldman Sachs calculated the world equity market at some U.S. $9,186
billion. This market is dominated by the U.S. ($3,296 billion) and Japan ($2,747
billion). Other nations of significant size include Switzerland ($225 billion),
Italy ($133 billion), France ($330 billion), Canada ($148 billion), Germany
($339 billion), and Great Britain ($905 billion). In 1991, world equity markets
posted sharp advances despite concerns about the U.S. deficit, world debt and
recession in a good part of the world. In 1994, the Financial Times Actuaries
World Index, which is composed of around 2,200 securities from 24 nations,
posted a total return of 5.8% in 1994 in terms of U.S. dollars. The FT-Actuaries
World Index showed a total return of 19.8% for 1993 following a 5.1% decline in
1992. Following is a table summarizing the market capital, total return
performance, price/earnings ratios and normal settlement time.
<PAGE>
<TABLE>
1993 1994 1995 1995
Market FT/S&P FT/S&P FT/S&P P/E
NATION Capital Index Index Index Ratio SETTLEMENT
(1) (2) (2) (2) (2)
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Australia 168.9 38.3% 6.5% 15.2% 18.7 Five business days
Austria 17.5 34.0% -0.2% -3.3% 22.2 Second Monday after trading week
Belgium 80.3 27.8% 7.8% 29.1% 14.6 Cash market -- same day
Canada 170.6 20.8% -2.2% 17.7% 13.4 Five business days
Denmark 39.3 34.5% 3.1% 16.4% 16.8 Three business days
Finland 29.6 78.9% 52.1% 2.0% 11.3 Five business days
France 371.3 23.5% -4.2% 13.2% 23.8 Usually last business day of month
Germany 401.9 37.7% 4.0% 16.5% 26.7 Two business days
Great Britain 1,091.3 23.8% -1.2% 23.3% 15.7 Two-week rolling average
Hong Kong 212.8 128.3% -31.3% 23.6% 12.3 Next business day
Ireland 19.1 41.3% 15.1% 28.3% 10.6 Bi-weekly
Japan 2,846.6 25.0% 21.5% -0.4% 100+ Three business days
Luxembourg -- -- -- -- -- --
Malaysia 116.3 130.7% -17.7% 3.0% 23.3 See note (3)
Mexico 38.7 46.4% -40.0% -25.5% 16.8 Two business days, see note (4)
Netherlands 231.6 36.6% 12.6% 30.2% 16.5 Within 10 days
New Zealand 22.4 65.3% 7.9% 18.4% 14.5 Five business days
Norway 24.6 32.7% 20.7% 10.8% 18.3 Seven business days
Singapore 64.0 75.3% 3.2% 11.1% 27.2 Tuesday of the following week
Sweden 129.3 20.7% 19.5% 37.7% 11.9 Five business days
Switzerland 328.9 44.3% 5.0% 45.4% 20.8 Three business days
United States 4,935.8 9.6% 1.7% 37.3% 17.1 Five business days
<FN>
(1) Billions of U.S. $. Estimated by FT/S&P Actuaries World IndicesTM/SM include approximately 2,400 securities in 26 national
indices. Excludes investment companies and foreign domiciled companies. (e): Estimated -- Malaysia and Singapore are not
reported separately.
(2) Total return measured in U.S. $.P/E ratio at year-end 1993. FT/S&P Actuaries World IndicesTM/SM include approximately 2,400
securities in 26 national indices.
(3) Kuala Lumpur Exchange."Ready Bargains" settle not later than 3:00 pm on: 1) Wednesday of the week following the trading period
when the clients are selling; 2) Thursday of the week following the trading period when brokers are dealing with SCANS
(Securities Network Services); 3) Friday of the week following the trading period when SCANS is dealing with buying brokers.
(4) For Exchange Traded Securities.
</FN>
</TABLE>
<PAGE>
COUNTRY SUMMARIES
AUSTRALIA is located southeast of Asia. The Indian Ocean is west and south, the
Pacific Ocean is east. The population, which is growing at 1.5% a year, is
estimated to be 18 million with a density of 6 people per square mile. Major
cities are Sydney, Melbourne, Brisbane, Adelaide, and Perth. Iron, steel,
textiles, electrical equipment, chemicals, autos, aircraft, ships, machinery,
cattle, and wool are the chief industries. The currency is the Australian dollar
(December 1995: AUD 1.35 = $1 U.S). The Gross Domestic Product was U.S. $306
billion in 1994, or about $17,000 per capita. The 1994 current account trade
balance is estimated to have been negative $13 billion. According to the OECD,
real GDP growth was around 3.3% in 1995 and should average around 3.0% per year
in 1996-97.
Australia is a major power in the Southeast Pacific with close ties to
Japan and Southeast Asia. It is an important agricultural nation and is the
world's primary wool producer. There are seven stock exchanges in Australia with
the major ones being the Australian Stock Exchange and the Sydney Stock Exchange
both based in Sydney; Adelaide, Brisbane, Hobart, Melbourne and Perth. Dividends
on Australian shares are usually paid semi-annually. Companies occasionally
issue bonus shares which, since they are issued without any corresponding
capital inflow, automatically dilute shareholders' value. However, shareholders
wealth is unaffected and, as the dividend rate is usually maintained on the
increased number of shares, a bonus issue effectively results in the increase of
the dividend return. Australia has always relied on foreign capital to assist in
financing economic development. Foreigners are free to invest in most sectors of
the economy. Exchange controls were, for the most part, abolished at the end of
1983. Those that remain are essentially designed to combat international tax
avoidance.
Dividends are exempt from withholding tax to the extent they qualify as
franked dividends. In general, dividends are franked if they are paid out of
profits that have borne corporate income tax at the full rate of 39%. If the
dividends are unfranked, a final withholding tax of 30% is levied.
AUSTRIA is located in southcentral Europe. Its neighbors are Switzerland,
Liechtenstein, Germany, Czech Republic, Slovakia, Hungary, Slovenia and Italy.
The population is estimated to be 8 million. Major cities are Vienna, Graz and
Linz. Steel, machinery, autos, electrical and optical equipment, glassware,
sport goods, paper, textiles, chemicals and cement are the chief industries. The
currency is the Schilling (December 1995: ATS 10.07 = $1 U.S.). The Gross
Domestic Product was $193 billion in 1994, or about $24,000 per capita.
Agriculture makes up 3% of the GDP, the industrial section 38% and the service
sector 59%. Defense spending is 1.2% of the GDP while education spending equals
6.0%. The 1994 current account trade balance was $311 million. Austria joined
the European Union in 1994.
The relatively small size of Austria's securities markets may make it
difficult for the Austrian
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National Fiduciary Equity Fund to effect purchases or sales of portfolio
securities without causing an increase or decrease in the market price of such
securities. The trading activities of competing investment companies may also
have an adverse effect on securities prices or reduce the availability of
securities appropriate for inclusion in the Fund's portfolio. Frequently,
trading in Austria is accomplished "off-exchange" through banks which may also
serve as broker/dealers and investment advisers. Since these banks may
simultaneously be dealing for their own account or the account of clients in
such instances, such "off-exchange" trading could involve conflicts of interest.
Austria produces most of its food as well as an array of industrial
products. Historically, a large part of the economy is controlled by state
enterprises but this is changing through the increasing privatization of such
enterprises. The rate of nonrefundable dividend withholding tax is currently
20%.
BELGIUM is located in northwest Europe on the North Sea. The population is
estimated to be 10 million. There are two main ethnic groups. The Dutch-speaking
Flemish make up about 60% of the population located in the north and west of the
country; and the French-speaking Walloons account for the remaining 40% and are
located to the south and east. The divisions between these two groups are not
only linguistic but also economic, social and cultural. Brussels is officially
bilingual, and English and German are widely used for business purposes and by
visitors. Major cities are Brussels, Antwerp, Ghent, Charleroi and Liege. Steel,
glassware, diamond cutting, textiles and chemicals are the chief industries. The
currency is the Belgian Franc (December 1995: BEF 29.41 = $1 U.S.). The Gross
Domestic Product was $228 billion in 1994, or about $23,000 per capita. The 1994
current account trade balance was positive $12.8 billion. Belgium is a member of
the European Union.
Exchange control is mainly concerned that settlements with foreign
countries are made through the appropriate exchange market. There are, in
general, no restrictions on portfolio investments. The rate of nonrefundable
dividend withholding tax is currently 25%.
CANADA, the world's second largest country, is located in North America,
southward from the North Pole to the U.S. border. The population is estimated to
be 29 million. Canada is divided into ten provinces and two territories. It is
an urban society with most of the principal cities located close to the U.S.
border. Both English and French are official languages, but French predominates
in the Province of Quebec where it is the official working language while
English is used throughout the rest of the country. Major cities are Montreal,
Toronto, Vancouver, Ottawa-Hull, Edmonton, Calgary, and Quebec. Mining, oil and
gas, paper and forest products, consumer products, industrial products,
chemicals, real estate, construction, transportation, finance, and
communications are the chief industries. The currency is the Canadian dollar
(December 1995: CAD 1.36 = $1 U.S.). The Gross Domestic Product was $521 billion
in 1994, or about $18,000 per capita. The 1994 current account trade balance was
negative $17.4 billion. Canada is a participant in the North American Free Trade
Agreement (NAFTA) along with the U.S.A. and Mexico.
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The market value of equity shares of domestic companies on the Toronto
Exchange, the largest of the five exchanges, on December 31, 1995 was around
$171 billion. There is also a large over the counter market run by approximately
200 broker/dealers and a few banks. Dividends on common shares are usually paid
quarterly. Calgary, Winnipeg, Montreal, and Vancouver also have stock exchanges.
Canada has no restrictions on foreign exchange. The nonrefundable dividend
withholding tax rate is currently 25%.
DENMARK is located in northern Europe, separating the North and Baltic Seas. The
population is estimated to be around 5 million. Major cities are Copenhagen and
Arhus. Machinery, textiles, furniture, electronics and dairy are the chief
industries. The currency is the Danish Krone (December 1995: DKK 5.54 = $1
U.S.). The Gross Domestic Product was $156 billion in 1994, or around $31,000
per capita. The 1994 current account trade balance was positive $2.7 billion.
Denmark is a member of the European Union.
There are no restrictions on portfolio investments. The nonrefundable
dividend withholding tax rate is currently 30%.
FINLAND is located in northern Europe. Its neighbors are Norway, Sweden and
Russia. The population is estimated to be around 5 million. Major cities are
Helsinki, Tampere and Turku. Machinery, metal, ship building, textiles and
clothing are the chief industries. The currency is the Finnish Markka (December
1995: FIM 4.38 = $1 U.S.). The Gross Domestic Product was $108 billion in 1994,
or about $22,000 per capita. The 1994 current account trade balance was $1.1
billion. Finland is a member of the European Union.
Purchases of shares on the Helsinki Stock Exchange (the only Stock Exchange
in Finland) or OTC (second tier) market are not subject to restriction. The
nonrefundable dividend withholding tax rate is currently 25% to nonresidents.
FRANCE, the largest country in western Europe, is located between the Atlantic
Ocean and the Mediterranean Sea. The population is estimated to be around 58
million. Major cities are Paris, Marseille, Toulousek Nice, Nantes, Strasbourg,
and Bourdeaux. Steel, chemicals, autos, textiles, wine, perfume, aircraft and
electronic equipment are the chief industries. The currency is the French Franc
(December 1995: FRF 4.91 = $1 U.S.). The Gross Domestic Product was $1,372
billion in 1994, or around $24,000 per capita. The 1994 current account trade
balance was negative $10 billion. France is a member of the European Union.
Portfolio investment is generally not restricted. The nonrefundable
dividend withholding tax rate is currently 25%.
GERMANY is located in central Europe with Denmark on the north, Netherlands,
Belgium, Luxembourg and France on the west, Switzerland and Austria on the south
and Poland and Czech Republic
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to the east. The dismantling of the Berlin Wall in November 1989 led to the
economic unification of East and West Germany in July of 1990. Political
unification followed on October 3, 1990. The population is estimated to be 81
million. Major cities are Berlin, Munich, Hamburg, Cologne, Frankfurt, Dortmund,
Dusseldorf, Leipzig, Dresden and Stuttgart. Steel, ships, autos, machinery, coal
and chemicals are the chief industries. The currency is the Deutschemark
(December 1995: DEM 1.44 = $1 U.S.). The Gross Domestic Product for Western
Germany was $1,811 billion in 1994, or about $22,000 per capita. Germany is a
member of the European Union.
Frankfurt is the largest of the eight stock exchanges in Germany, and is
considered the center of trading activity. Hamburg and Munich are also
important, while Berlin, Dusseldorf, Hanover, Bremen, and Stuttgart are regional
exchanges only. The equity market is not considered to be an especially
important component of Germany's capital markets since equity issues are not a
major source of financing for German corporations. The shares of approximately
600 companies are listed for trading on stock exchanges, but perhaps only 100 or
so of these would be considered suitable for investor trading as many issues
listed are tightly controlled private groups and banks. Equity markets in
Germany are dominated by the German Banks and most brokerage is conducted
through the major banks, all of which have seats on the major exchanges. There
are two basic types of German companies: Aktiengesellschaft (AG) represents an
independent legal entity formed by Articles of Incorporation. AG shares are
fully transferable and eligible to be traded on German stock exchanges. They are
normally registered unless the company by-laws allow for bearer shares. The
second type of company is Beschrankter (GmbH) which is similar to the AG, but
the shares are not freely transferrable and cannot be traded on a stock
exchange. There are no portfolio investment restrictions. The nonrefundable
dividend withholding tax rate is currently 25%.
GREAT BRITAIN is the principal port of the United Kingdom of Great Britain and
Northern Ireland, located on an island off the northwest coast of Europe and
comprising of England, Scotland and Wales. The population is estimated to be 58
million. Major cities are London, Birmingham, Glasgow, Leeds, Sheffield,
Manchester and Edinburgh. Steel, metals, vehicles, shipbuilding, shipping,
banking, insurance, textiles, chemicals, electronics, aircraft machinery and
distilling are the chief industries. The currency is the English Pound (December
1995: GBP 1 = $1.55 U.S.) The Gross Domestic Product was $890 billion in 1994,
or about $15,000 per capita. The 1994 current account trade balance was negative
$2.4 billion. The United Kingdom is a member of the European Union.
The London Stock Exchange is the oldest and the largest security exchange
in Great Britain. There are 13 provincial exchanges which, with London, make up
the International Stock Exchange of the United Kingdom and the Republic of
Ireland. Most of the securities trading in Great Britain takes place on the
London Stock Exchange although trading facilities are still maintained on the
floor of the Provincial exchanges. The equity markets in Great Britain are
considered to be among the most highly developed in the World. All exchange
controls and restrictions were removed in 1979. The nonrefundable dividend
withholding tax rate is currently 25%.
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HONG KONG, a Crown Colony, is located at the mouth of the Canton River in China,
90 miles south of Canton. The population is estimated to be 5.7 million. English
and Cantonese are the languages of commerce. Textiles, apparel, tourism,
shipbuilding, iron and steel, fishing, cement and small manufacturers are the
chief industries. The currency is the Hong Kong Dollar (December 1995: HKD 7.73
= $1 U.S.). The Gross Domestic Product was estimated at $108.7 billion in 1993,
or about $19,094 per capita. The 1991 current account trade balance was positive
$2 billion.
The governments of the United Kingdom and the Peoples Republic of China
(PRC) have entered into an agreement whereby sovereignty over Hong Kong will be
restored to the PRC July 1, 1997. Hong Kong will then be a special
administrative region with its own law for another fifty years (up to 2047).
There is considerable uncertainty as to the impact of the Chinese takeover. It
is possible that the Chinese takeover will accelerate the departure of capital
and productive individuals. Hong Kong developed from a trading zone into a major
manufacturing and financial center of world importance after the outbreak of the
Korean War. It has an excellent economic infrastructure with highly developed
international communications, and transportation, as well as local roads,
subways and water transportation. However, the influx of refugees from other
Asian countries may strain Hong Kong's economic and social resources and
structure. The Colony's financial institutions have been reconstituted following
the 1987 world markets crash and they have successfully withstood subsequent
pressures. The stock market crash of 1987 and subsequent arrest on corruption
charges of the chairman and several other top officials of the Hong Kong Stock
Exchange precipitated major reform including the establishment of the powerful
new Securities and Futures Commission which began operations in May of 1989. The
government has taken the position that the territory must steer a delicate
course between overregulation and underregulation.
Hong Kong's investment and trade ties with the Peoples Republic of China
are significantly increasing. The PRC presently makes up about 38% of imports
into Hong Kong, and re-exports from the PRC constitute a large percentage of
Hong Kong's total exports. It is to be expected that the Hong Kong stock market
will remain dependent upon prevailing perceptions of political developments in
China. Foreign enterprises are treated virtually the same as domestic
enterprises and there are no restrictions in exchange of foreign currencies or
on the repatriation of profits. Import and export licenses are easy to obtain.
There are no exchange controls, investment restrictions or dividend withholding
taxes.
THE REPUBLIC OF IRELAND is the western-most nation of Europe, located in the
Atlantic Ocean just west of Britain. Population is estimated at 3.6 million,
one-eighth of which live in the capital city of Dublin. Important industries in
the national economy are food, textiles, chemicals, brewing, machinery, tourism
and services. The national currency of Ireland is the Pound (Punt), which at
December 31, 1995, was valued at IP 0.62 = $1 U.S. Gross Domestic Product was
U.S. $51 billion in 1994, or about $14,000 per capita. The current account
balance was a $3.2 billion surplus in 1994. The OECD estimates that real GDP
expanded 6.5% during 1995 and forecasts growth of around 5.5% in 1996 and 1997.
No withholding tax is deducted from dividend payments made by Irish companies.
Ireland is a member of the European Union.
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JAPAN is located in the Archipelago off the east coast of Asia. The population
is estimated to be 125 million. Major cities are Tokyo, Yokohama, Osaka, Nagoya,
Kyoto, Sapporo and Kobe. Electrical and electronic equipment, autos, machinery
and chemicals are the chief industries. The currency is the Japanese Yen
(December 1995: JPY 103.43 = $1 U.S.). The Gross Domestic Product was $4,400
billion in 1994, or about $35,000 per capita. The 1994 current account trade
balance was positive $129 billion.
The Tokyo Stock Exchange is the largest of eight exchanges in Japan which
has very well developed primary and secondary equity markets. The price/earnings
ratios for Japanese securities have recently been much higher than typical
price/earnings ratios for U.S. securities. In 1989-92, however, the Japanese
stock market was in a steady downtrend; the Tokyo Stock Exchange lost more than
50% of its value in the four years following its December 1989 peak. All equity
securities business in Japan is conducted by security dealers. They trade on a
typical broker basis on commission. Japanese securities companies may trade on
their own accounts, but only to the extent necessary for the maintenance of a
fair and orderly market. Broker basis trading accounts for 70-75% of the value
of all stock trading. Portfolio investments of less than 10% are not restricted.
Dividends are currently subject to a nonrefundable 20% dividend withholding tax.
LUXEMBOURG is located in western Europe. The population is estimated to be 0.4
million. The major city is Luxembourg. Steel, chemicals, beer, tires, tobacco,
metal products, cement and financial services are the chief industries. The
currency is the Luxembourg Franc which is identical in value to the Belgian
Franc (December 1995: LUF 29.60 = $1 U.S.). French and German and Luxembourgish
(a mainly German dialect) are the official languages and most Luxembourgers are
fluent in all three. English is spoken by many Luxembourgers and is widely used
in business. The Gross Domestic Product was $11 billion in 1992, or about
$27,000 per capita. Luxembourg is a member of the European Union.
There are no investment restrictions. A dividend withholding tax of 15%
does not apply to holding companies.
MEXICO is a nation of 93 million people located in the southernmost part of
North America. Its capital city is Mexico City; other large cities include
Guadalajara and Monterrey. The official language is Spanish; however, English is
commonly used for international business. Steel, chemicals, electric goods,
textiles, petroleum and tourism are important industries. The national currency
of Mexico is the Peso, which was valued, at December 31, 1993, at MP 3.11 = $1
U.S. but was devalued in 1994 so that at December 31, 1994, the value was 5.33
to the U.S. dollar. It further depreciated in December 1995 to 7.69/$. Gross
Domestic Product was U.S. $327 billion in 1993, or $3,650 per capita. The
current account balance was U.S. $29 billion in deficit for 1994. The OECD
estimates that real GDP shrank 6.0% during 1995 and forecasts growth rates of a
little more than 3% in 1996 and in 1997.
<PAGE>
Mexico is a democratic republic with a constitution. It has a federal and
representative form of government. There are 31 states and one federal district.
The President is the head of government and chief of state. It is still
considered to be an emerging nation. Although the ruling Institutional
Revolutionary Party (PRI) has been in power for more than 65 years, the recent
relative stability of the country is being called into question as the nation
struggles with the transition from a controlled to a more open democracy. The
January 1995 uprising of a rebel Indian group in the southern state of Chiapas
has still to be fully resolved. A new political scandal - the arrest of the
brother of former president Salinas for orchestrating a political assassination
- - has added to the uncertainty.
As a consequence of the peso's collapse, the Mexican economy is likely to
experience high interest rates, soaring inflation and no economic growth if not
an outright decline in GDP. Over the long run, it is hoped that the devaluation
will increase the attractiveness of Mexican exports, stimulate economic growth
and reduce Mexico's dependence on short-term foreign investment.
For all of 1995, the 18-stock FT/S&P Total Return Index declined 3.6% in
pesos, and 25% in dollar terms. For the first two months of 1995, the index
declined an additional 35% in pesos and 45% in dollars.
When dividends are distributed out of the balance on the net tax profit
account, no tax is charged. Dividends not distributed out of the balance on the
net tax profit account are subject to a 35% charge. The tax is charged by
grossing up the dividend declared. The balance on the net tax profit account is
computed by adding the sum of net tax profits for each year to the dividends
received from other resident companies and then subtracting the dividends paid
from the account.
NETHERLANDS is located in northwestern Europe on the North Sea. The population
is estimated to be 15 million. Major cities are Amsterdam, Rotterdam & Hague.
Metals, machinery, chemicals, oil refinery, diamond cutting, electronics and
tourism are the chief industries. The language spoken is Dutch. Most people in
business also speak English. The currency is the Dutch Guilder (December 1995:
NLG 1.61 = $1 U.S.). The Gross Domestic Product was $344 billion in 1994, or
about $25,000 per capita. The 1994 current account trade balance was positive
$12 billion. Netherlands is a member of the European Union.
The Amsterdam Stock Exchange is the largest and all Dutch securities are
listed on it. It is also the oldest stock exchange in the world and perhaps the
only one that charges itself with the primary obligation of protecting
shareholders. However, the Dutch equity market although growing in trading
volume has not been particularly active. Domestic participation is primarily
institutional with perhaps only about 10 to 15 percent of Dutch households
owning equity shares. Dutch pension funds are also limited to having 3 to 5
percent of their assets in equities and Dutch banks are prohibited from holding
shares for more than five years. There are no portfolio investment restrictions.
There is a nonrefundable dividend withholding tax which is currently set at 25%.
NEW ZEALAND is mainly comprised of two islands in the southwest Pacific Ocean.
The population is estimated to be 3.5 million. Major cities include Wellington,
Auckland, Christchurch and Manakau.
<PAGE>
Food processing, fishing, textiles (especially wool-related), forest
products and machinery are the chief industries. The currency is the New Zealand
Dollar (December 1995: NZD 1.53 = $1 U.S.). The Gross Domestic Product was $51
billion in 1994, or $15,000 per capita. The current account trade deficit was $2
billion in 1994.
There are no investment restrictions unless 25% of the shares of a company
are purchased. The rate of the nonrefundable dividend withholding tax is
currently 30%.
NORWAY occupies the western part of the Scandinavian Peninsula in northwest
Europe. The population is estimated to be 4.3 million. Major cities are Oslo and
Bergen. Engineering, metals, chemicals, food processing, fishing, paper,
shipbuilding and oil and gas are the chief industries. The currency is the
Norwegian Kronor (December 1995: NOK 6.33 = $1 U.S.). The Gross Domestic Product
was $118 billion in 1994, or about $27,000 per capita. The 1994 current account
trade balance was positive $3.6 billion.
No exchange control restrictions apply to portfolio investments by
foreigners in quoted companies although consent of the Bank of Norway may be
required to purchase more than a specified percentage of a company that owns
Norwegian real estate. The nonrefundable dividend withholding tax rate is
currently 25%.
SWEDEN is located on the Scandinavian Peninsula in Northern Europe. The
population is estimated to be 8.8 million. Major cities are Stockholm, Goteborg
and Malmo. Steel, machinery, instruments, autos, shipbuilding, shipping and
paper are the chief industries. The currency is the Swedish Krona (December
1995: SEK 6.69 = $1 U.S.), The Gross Domestic Product was $196 billion in 1994,
or about $23,000 per capita. The 1994 current account trade balance was $826
million. Sweden is a member of the European Union.
Swedish companies by-laws frequently contain a stipulation restricting
foreign ownership to less than 40% of the share capital and less than 20% of the
voting power in the company, a rule which cannot normally be changed without the
government's consent. Shares which may be acquired by foreigners are called free
shares and are so designated on shares certificates. A Swedish company without
such a stipulation in its by-laws is regarded as "foreign" and is subject to
restrictions on foreign acquisition of real estate and natural resources, or
even from acquiring more than 20% of the voting rights of any other company.
Foreigners may deal without restriction in the free shares on the Stockholm
Stock Exchange, provided they do not exceed 10% of the share capital or voting
power. The "free share market" may behave quite differently from other markets.
This may be due to cultural characteristics of the Swedish shareholders or the
fact that foreigners in the "free market" can sell their shares and move into
other markets whereas the Swedes are seldom able to get permission to invest
abroad. The nonrefundable dividend withholding tax rate is currently 30%.
SWITZERLAND is located in the Alps Mountains in Europe. The population is
estimated to be 7 million. Switzerland has four national languages: German,
French, Italian, and Romansh. Romansh
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is found on all Swiss bank notes. About two thirds of the population speak
a German dialect known as Schweizerdeutsch. English is the most widely used
foreign language in Swiss business. Major cities are Zurich, Basel and Geneva.
Machinery, machine tools, steel, instruments, watches, textiles, foodstuffs
(cheese, chocolate), chemicals, drugs, banking and tourism are the chief
industries. The currency is the Swiss Franc (December 1995: CHF 1.15 - $1 U.S.).
The Gross Domestic Product was $273 billion in 1994, or about $39,000 per
capita. The 1994 current account trade balance was positive $18.5 billion.
Zurich Exchange is one of the largest in the world in terms of volume.
Switzerland's equity markets also include organized stock exchanges of Basel,
Geneva, Bern and Lausanne as well as the over the counter market. Trading is
active although the exchanges are relatively small by international standards.
Ordinary shares, participation certificates, warrants and mutual funds are
traded on Swiss secondary markets. Swiss common shares must be carefully
distinguished by type since most Swiss companies do not allow nonresidents to
own Swiss registered shares. The types of shares are: Bearer - ordinary shares
which are fully voting common shares with full right to dividends and which
typically sell for 25 percent premium over registered shares; Registered -
ordinary shares which are a fully voting common shares with full rights and
dividends (in November of 1988, Nestle broke the tradition of prohibiting
nonresidents from owning registered shares and became the first Swiss company to
allow foreign ownership of registered shares) and Participation and Dividend
Right Certifications which are equity securities with full right to dividends
but no voting rights. Participation Certifications are otherwise fully
participating with common shares and can be purchased by nonresidents. The
nonrefundable dividend withholding tax rate is currently 35%.
UNITED STATES is a nation of 260 million people located in North America. The
U.S. economy is the world's largest, with 1994 Gross Domestic Product estimated
at $7.1 trillion or $27,300 per capita. The nation's current account deficit is
estimated at about $220 billion for 1995. Real GDP advanced by just over 3%
during 1995 and according to the OECD, the growth rate is likely to be around
2.7% in 1996 and about 2.8% in 1997. There is no withholding on dividends paid
to the Fund.
<PAGE>
STATEMENT OF
ADDITIONAL INFORMATION
MAY 1, 1996
THE WRIGHT EQUIFUND EQUITY TRUST
Wright EquiFund--Australasia*
Wright EquiFund--Austria*
Wright EquiFund--Belgium/Luxembourg
Wright EquiFund--Britain
Wright EquiFund--Canada*
Wright EquiFund--France*
Wright EquiFund--Germany
Wright EquiFund--Hong Kong
Wright EquiFund--Ireland*
Wright EquiFund--Japan
Wright EquiFund--Mexico
Wright EquiFund--Netherlands
Wright EquiFund--Nordic
Wright EquiFund--Switzerland
Wright EquiFund--United States*
Wright EquiFund--Global*
Wright EquiFund--International*
* As of the date of this Statement of Additional Information, these Funds
are not available for purchase in any state of the United States. Contact
the principal underwriter or your broker for the latest information.
24 FEDERAL STREET
BOSTON, MASSACHUSETTS 02110
THIS COMBINED STATEMENT OF ADDITIONAL INFORMATION IS NOT A PROSPECTUS AND IS
AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE INVESTORS ONLY IF PRECEDED OR
ACCOMPANIED BY THE CURRENT COMBINED PROSPECTUS OF THE FUNDS DATED MAY 1, 1996,
AS SUPPLEMENTED FROM TIME TO TIME, WHICH IS INCORPORATED HEREIN BY REFERENCE. A
COPY OF THE PROSPECTUS MAY BE OBTAINED WITHOUT CHARGE FROM WRIGHT INVESTORS'
SERVICE DISTRIBUTORS, INC., 1000 LAFAYETTE BOULEVARD, BRIDGEPORT, CONNECTICUT
06604 (TELEPHONE: (800) 888-9471).
<PAGE>
TABLE OF CONTENTS
------------------------------------------
PAGE
Additional Information about the Trust.................. 3
Additional Investment Information....................... 3
Officers and Trustees................................... 11
Control Persons and Principal Holders of Shares......... 13
Investment Advisory and Administrative Services......... 14
Custodian............................................... 16
Independent Certified Public Accountants................ 16
Brokerage Allocation.................................... 17
Principal Underwriter................................... 18
Performance Information................................. 20
Taxes................................................... 21
Financial Statements.................................... 23
APPENDICES:
Appendix A..................................... A1-A7
Appendix B..................................... B1-B2
<PAGE>
ADDITIONAL INFORMATION ABOUT THE TRUST
Unless otherwise defined herein, capitalized terms have the meaning given
to them in the Prospectus.
The Trust's Declaration of Trust may be amended with the affirmative vote
of a majority of the outstanding shares of the Trust or, if the interests of a
particular Wright EquiFund are affected, a majority of such Fund's outstanding
shares. The Trust may be terminated (i) upon the sale of the Trust's assets to
another open-end management investment company, if approved by the holders of
two-thirds of the outstanding shares of the Trust, except that if the Trustees
of the Trust recommend such sale of assets, the approval by the vote of a
majority of the Trust's outstanding shares will be sufficient; or (ii) upon
liquidation and distribution of the assets of the Trust, if approved by a
majority of its Trustees or by the vote of a majority of the Trust's outstanding
shares. If not so terminated, the Trust may continue indefinitely.
The Trust's Declaration of Trust further provides that the Trust's Trustees
will not be liable for errors of judgment or mistakes of fact or law; however,
nothing in the Declaration of Trust protects a Trustee against any liability to
which he would otherwise be subject by reason of willful misfeasance, bad faith,
gross negligence, or reckless disregard of the duties involved in the conduct of
his office.
The Trust is an organization of the type commonly known as a "Massachusetts
business trust." Under Massachusetts law, shareholders of such a trust may,
under certain circumstances, be held personally liable as partners for the
obligations of the trust. The Trust's Declaration of Trust contains an express
disclaimer of shareholder liability in connection with the Trust property or the
acts, obligations or affairs of the Trust. The Declaration of Trust also
provides for indemnification out of the Trust property of any shareholder held
personally liable for the claims and liabilities to which a shareholder may
become subject by reason of being or having been a shareholder. Thus, the risk
of a shareholder incurring financial loss on account of shareholder liability is
limited to circumstances in which the Trust itself would be unable to meet its
obligations.
ADDITIONAL INVESTMENT INFORMATION
In selecting securities for the Indices and for inclusion in the portfolios
of the Funds, other than the United States Fund, Wright utilizes its
international database, which includes WORLDSCOPE(R). WORLDSCOPE(R) provides
more than 1,500 items of information on more than 13,000 companies worldwide.
Additional information about the composition of the Indices may be obtained
without charge from Wright Investors' Service Distributors, Inc., 1000 Lafayette
Boulevard, Bridgeport, CT 06604 (800-888-9471). Except for the United States,
Wright utilizes the services of major financial institutions that are located in
the nations in which the respective Funds are permitted to invest to supply
Wright with research products and services including reports on particular
industries and companies, economic surveys and analysis of the investment
environment and trends in a particular nation, recommendations as to whether
specific securities should be included in an Index and other assistance in the
performance of its decision-making responsibilities. Currently, Wright expects
to utilize several major international banks in the above-mentioned capacity.
The Indices are adjusted as necessary to reflect recent events. A detailed
explanation of the objective criteria used in the selection process is as
follows.
To be selected for an Index, a company must have:
1. Five years of earnings data (17 quarters of 12 month earnings). To
be selected, a company's trailing 12 month earnings during the
last four quarters or during the last three reported years
cumulatively must be positive.
<PAGE>
2. Five years of dividend information or positive verification
that a company did not declare a dividend (20 quarters of
quarterly dividend information).
3. Three years of price information (12 quarters of quarterly
prices). To be selected, a company generally must have market
value (number of shares times price) equal to or greater than $20
million. Once a company is selected, its market value must be less
than $15 million for the company's securities to be removed from
the relevant Index.
4. Book value information for the past five years (20 quarters). To
be selected, book value must be equal to or greater than $20
million. Once a company is selected, its book value must be less
than $15 million for the company's securities to be removed from
the relevant Index.
5. Industry group information. Companies that are closed-end
investment companies, real estate investment trusts or non-bank
securities brokers or dealers will not be included.
Acquired companies may continue to be included in the relevant Index up to
their acquisition date.
DESCRIPTION OF INVESTMENTS
U.S. GOVERNMENT, AGENCY AND INSTRUMENTALITY OBLIGATIONS -- U.S. Government
obligations are issued by the U.S. Treasury and include bills, certificates of
indebtedness, notes, and bonds. Agencies and instrumentalities of the U.S.
Government are established under the authority of an act of Congress and
include, but are not limited to, the Government National Mortgage Association,
the Tennessee Valley Authority, the Bank for Cooperatives, the Farmers Home
Administration, Federal Home Loan Banks, Federal Intermediate Credit Banks,
Federal Land Banks, and the Federal National Mortgage Association.
REPURCHASE AGREEMENTS -- involve the purchase of debt securities of the
U.S. Treasury, a federal agency, a federal instrumentality or a
federally-created corporation or of other high quality short-term debt
obligations. At the same time a Fund purchases the security it resells such
security to the vendor which is a member bank of the Federal Reserve System, a
recognized securities dealer or any foreign bank whose creditworthiness has been
determined by Wright to be at least equal to that of issuers of commercial paper
rated within the two highest grades assigned by Moody's or S&P, and is obligated
to redeliver the security to the vendor on an agreed-upon date in the future. A
repurchase agreement with foreign banks may be available with respect to
government securities of the particular foreign jurisdiction. The resale price
is in excess of the purchase price and reflects an agreed-upon market rate
unrelated to the coupon rate on the purchased security. Such transactions afford
an opportunity for a Fund to earn a return on cash which is only temporarily
available. A Fund's risk is the ability of the vendor to pay an agreed upon sum
upon the delivery date, which the Trust believes is limited to the difference
between the market value of the security and the repurchase price provided for
in the repurchase agreement. However, bankruptcy or insolvency proceedings
affecting the vendor of the security which is subject to the repurchase
agreement, prior to the repurchase, may result in a delay in a Fund being able
to resell the security. The 1940 Act prohibits registered investment companies
from acquiring certain securities issued by broker-dealers. A transaction
whereby a Fund enters into a repurchase agreement with a broker-dealer might be
construed as a contravention of this prohibition. In the event the law is so
interpreted, the Funds will cease such transactions.
CERTIFICATES OF DEPOSIT -- are certificates issued against funds deposited
in a bank, are for a definite period of time, earn a specified rate of return,
and are normally negotiable.
<PAGE>
BANKERS' ACCEPTANCES -- are short-term credit instruments used to finance
the import, export, transfer or storage of goods. They are termed "accepted"
when a bank guarantees their payment at maturity.
FIXED TIME DEPOSITS -- are bank obligations payable at a stated maturity
date and bearing interest at a fixed rate. Fixed time deposits may be withdrawn
on demand by the investor, but may be subject to early withdrawal penalties
which vary depending upon market conditions and the remaining maturity of the
obligation. There are no contractual restrictions on the right to transfer a
beneficial interest in a fixed time deposit to a third party, although there is
no market for such deposits.
COMMERCIAL PAPER AND FINANCE COMPANY PAPER -- refers to promissory notes
issued by corporations in order to finance their short-term credit needs.
FOREIGN SECURITIES -- The Funds, other than the United States Fund, may
invest in foreign securities, and in certificates of deposit, bankers'
acceptances, fixed time deposits issued by major foreign banks and foreign
branches of United States banks, to any extent deemed appropriate by Wright and
consistent with a Fund's investment objective. Investing in securities of
foreign governments or securities issued by companies whose principal business
activities are outside the United States may involve significant risks not
associated with 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 comparable to those applicable to domestic
issuers. Investments in foreign securities also involve the risks of possible
adverse changes in exchange control regulations, expropriation or confiscatory
taxation, limitation on removal of funds or other assets of a Fund, political or
financial instability or diplomatic and other developments which could affect
such investments. Further, economies of particular countries or areas of the
world may differ favorably or unfavorably from the economy of the U.S. To the
extent investments in foreign securities are denominated or quoted in currencies
of foreign countries, a Fund may be affected favorably or unfavorably by changes
in currency exchange rates and may incur costs in connection with conversion
between currencies.
It is anticipated that in most cases the best available market for foreign
securities will be on exchanges or in over-the-counter markets located outside
the U.S. Foreign stock markets, while growing in volume and sophistication, are
generally not as developed as those in the U.S. Securities of some foreign
issuers may be less liquid and more volatile than securities of comparable U.S.
companies (this is particularly true of issuers located in developing countries;
however, the Funds do not anticipate investments in securities of developing
countries). In addition, foreign brokerage commissions are generally higher than
commissions on securities traded in the U.S. and may be non-negotiable. In
general, there is less overall governmental supervision and regulation of
securities exchanges, brokers and listed companies than in the U.S.
FOREIGN CURRENCY EXCHANGE TRANSACTIONS -- The Funds, other than the United
States Fund, may engage in foreign currency exchange transactions. Investments
in securities of foreign governments and companies whose principal business
activities are located outside the United States will frequently involve
currencies of foreign countries. In addition, assets of a Fund may temporarily
be held in bank deposits in foreign currencies during the completion of
investment programs. Therefore, the value of a Fund's assets, as measured in
U.S. dollars, may be affected favorably or unfavorably by changes in foreign
currency exchange rates and exchange control regulations. Although each Fund
values its assets daily in U.S. dollars, the Fund does not intend to convert its
holdings of foreign currencies into U.S. dollars on a daily basis. A Fund may
conduct its foreign currency exchange transactions on a spot (i.e., cash) basis
at the spot rate prevailing in the foreign currency exchange market. The Fund
will convert currency on a spot basis from time to time and will incur costs in
connection with such currency conversion. Although foreign exchange dealers do
not charge a fee for conversion, they do realize a
<PAGE>
profit based on the difference (the "spread") between the prices at which
they are buying and selling various currencies. Thus, a dealer may offer to sell
a foreign currency to a Fund at one rate, while offering a lesser rate of
exchange should the Fund desire to resell that currency to the dealer. The Funds
do not intend to speculate in foreign currency exchange rates.
As an alternative to spot transactions, a Fund may enter into contracts to
purchase or sell foreign currencies at a future date ("forward contracts"). A
forward contract involves an obligation to purchase or sell a specific currency
at a future date and price fixed by agreement between the parties at the time of
entering into the contract. These contracts are traded in the interbank market
conducted directly between currency traders (usually large commercial banks) and
their customers. Although a forward contract generally involves no deposit
requirement and no commissions are charged at any stage for trades, a Fund will
maintain segregated accounts in connection with such transactions. The Funds
intend to enter into such contracts only on net terms.
A Fund may enter into forward contracts under two circumstances. First,
when a Fund enters into a contract for the purchase or sale of a security quoted
or denominated in a foreign currency, it may desire to "lock in" the price of
the security. This is accomplished by entering into a forward contract for the
purchase or sale, for a fixed amount of the foreign currency involved in the
underlying security transaction ("transaction hedging"). Such forward contract
transactions will enable the Fund to protect itself against a possible loss
resulting from an adverse change in the relationship between the different
currencies during the period between the date the security is purchased or sold
and the date of payment for the security.
Second, when Wright believes that the currency of a particular foreign
country may suffer a decline, a Fund may enter into a forward contract to sell
the amount of foreign currency approximating the value of some or all of the
securities quoted or denominated in such foreign currency. The precise matching
of the forward contract amounts and the value of the securities involved will
not generally be possible. The future value of such securities in foreign
currencies will change as a consequence of fluctuations in the market value of
those securities between the date the forward contract is entered into and the
date it matures. The projection of currency exchange rates and the
implementation of a short-term hedging strategy are highly uncertain. As an
operating policy, the Funds do not intend to enter into forward contracts for
such hedging purposes on a regular or continuous basis, and will not do so if,
as a result, more than 50% of the value of a Fund's total assets would be
committed to the consummation of such contracts. A Fund will also not enter into
such forward contracts or maintain a net exposure to such contracts if the
contracts would obligate the Fund to deliver an amount of foreign currency in
excess of the value of the Fund's securities or other assets quoted or
denominated in that currency.
The Fund's custodian will place cash or liquid, high grade debt securities
in a segregated account. The amount of such segregated assets will be at least
equal to the value of a Fund's total assets committed to the consummation of
forward contracts involving the purchase of foreign currency. If the value of
the securities placed in the segregated account declines, additional cash or
securities will be placed in the account on a daily basis so that the value of
the amount will equal the amount of the Fund's commitments with respect to such
contracts.
A Fund generally will not enter into a forward contract with a term of
greater than one year. At the maturity of a forward contract, the Fund may elect
to sell the portfolio security and make delivery of the foreign currency.
Alternatively, the Fund may retain the security and terminate its contractual
obligation to deliver the foreign currency by purchasing an identical offsetting
contract from the same currency trader.
It is impossible to forecast with precision the market value of portfolio
securities at the expiration of a forward contract. Accordingly, it may be
necessary for a Fund to purchase additional foreign currency
<PAGE>
on the spot market (and bear the expense of such purchase) if the Fund
intends to sell the security and the market value of the security is less than
the amount of foreign currency that the Fund is obligated to deliver.
Conversely, it may be necessary to sell on the spot market some of the foreign
currency received upon the sale of the portfolio security if its market value
exceeds the amount of foreign currency that the Fund is obligated to deliver.
If a Fund retains the portfolio security and engages in an offsetting
transaction, the Fund will incur a gain or loss (as described below) to the
extent that there has been a change in forward contract prices. If the Fund
engages in an offsetting transaction, it may subsequently enter into a new
forward contract to sell the foreign currency. Should forward contract prices
decline during the period between the date the Fund enters into a forward
contract for the sale of the foreign currency and the date it enters into an
offsetting contract for the purchase of the foreign currency, the Fund will
realize a gain to the extent that the price of the currency it has agreed to
sell exceeds the price of the currency it has agreed to purchase. Should forward
contracts prices increase, the Fund will suffer a loss to the extent that the
price of the currency it has agreed to purchase exceeds the price of the
currency it has agreed to sell.
A Fund will not speculate in forward contracts and will limit its dealings
in such contracts to the transactions described above. Of course, a Fund is not
required to enter into such transactions with respect to its portfolio
securities quoted or denominated in a foreign currency and will not do so unless
deemed appropriate by Wright. This method of protecting the value of a Fund's
securities against a decline in the value of a currency does not eliminate
fluctuations in the underlying prices of the securities. It simply establishes a
rate of exchange which the Fund can achieve at some future time. Additionally,
although such contracts tend to minimize the risk of loss due to a decline in
the value of the hedged currency, they also tend to limit any potential gain
which might be realized if the value of such currency increases.
A Fund's foreign currency transactions may be limited by the requirements
of Subchapter M of the Internal Revenue Code of 1986, as amended, for
qualification as a regulated investment company.
INVESTMENT RESTRICTIONS
Each Fund may establish an investment reserve in cash (including foreign
currency) or cash equivalent securities (high quality short-term fixed income
debt securities) whenever such reserve is deemed to be in the best interests of
the shareholders for any reason, including Wright's expectation of a decline in
the equity markets in which the Fund is permitted to invest. Under normal market
conditions, such reserves will be no more than approximately 20% of a Fund's net
assets. Accordingly, each Fund will have at least 80% of its net assets invested
in equity securities during normal market conditions. With respect to Austria,
Belgium/Luxembourg, Canada, France, Germany, Hong Kong, Japan, Netherlands,
Nordic and Switzerland Funds, the policy stated in the preceding sentence is
fundamental and may be changed only by the vote of a majority of a Fund's
outstanding voting securities. A greater reserve position may, however, be
established temporarily if Wright believes that this would be advisable in view
of what it considers to be extraordinary economic and stock market conditions.
See "Special Investment Considerations - Temporary Defensive Investments" in the
Prospectus for a discussion of when the Funds may take a temporary defensive
position.
The following investment restrictions have been adopted by each Fund and
may be changed as to a Fund only by the vote of a majority of the affected
Fund's outstanding voting securities, which means the lesser of (a) 67% of the
shares of the Fund if the holders of more than 50% of the shares are present or
represented at the meeting or (b) more than 50% of the shares of the Fund. If a
percentage restriction contained herein is adhered to at the time of investment,
a later increase or decrease in the percentage resulting from a change in the
value of portfolio securities or the amount of net assets will not be considered
a violation of any of the following restrictions. Accordingly, each Fund may
not:
<PAGE>
(The following fundamental investment restrictions apply only to Austria,
Belgium/Luxembourg, Canada, France, Germany, Hong Kong, Japan, Netherlands,
Nordic and Switzerland.)
(1) Borrow money other than from banks and then only up to 1/3 of the
current market value of its total assets (including the amount
borrowed) and only if such borrowing is incurred as a temporary
measure for extraordinary or emergency purposes or to facilitate
the orderly sale of portfolio securities to accommodate redemption
requests; or issue any securities other than its shares of
beneficial interest except as appropriate to evidence indebtedness
which the Fund is permitted to incur. (Each Fund anticipates
paying interest on borrowed money at rates comparable to its yield
and no Fund has any intention of attempting to increase its net
income by means of borrowing);
(2) Pledge, mortgage or hypothecate its assets to an extent greater
than 1/3 of the total assets of the Fund taken at market;
(3) Purchase the securities of any one issuer (other than obligations
issued or guaranteed by the U.S. Government or any of its
agencies, or securities of other regulated investment companies)
if, as a result of such purchase, more than 5% of that Fund's
total assets (taken at current value) would be invested in the
securities of such issuer or securities of any one issuer held by
that Fund would exceed 10% of the outstanding voting securities of
such issuer at the end of any fiscal quarter of the Fund, provided
that, with respect to 50% of the Fund's assets, the Fund may
invest up to 25% of its assets in the securities of any one
issuer;
(4) Purchase or retain securities of any issuer if 5% or more of the
issuer's securities are owned by those officers and Trustees of
the Trust or its investment adviser or administrator who own
individually more than 1/2 of 1% of the issuer's securities;
(5) Purchase securities on margin or make short sales except sales
against the box or purchase warrants;
(6) Buy or sell commodities, or commodity contracts (except that the
Fund may purchase or sell currencies and put and call options on
securities, indices or currencies and enter into forward foreign
currency exchange contracts), unless acquired as a result of
ownership of securities;
(7) Purchase any securities which would cause more than 25% of the
market value of its total assets at the time of such purchase to
be invested in the securities of issuers having their principal
business activities in the same industry, provided that there is
no limitation in respect to investments in obligations issued or
guaranteed by the U.S.
Government or its agencies or instrumentalities;
(8) Underwrite securities issued by other persons except to the extent
that the purchase of securities in accordance with a Fund's
investment objectives and policies directly from the issuer
thereof and the later disposition thereof may be deemed to be
underwriting;
(9) Make loans, except (i) through the loan of a portfolio security,
(ii) by entering into repurchase agreements and (iii) to the
extent that the purchase of debt instruments, if any, in
accordance with the Fund's investment objective and policies may
be deemed to be loans;
(10) Purchase from or sell to any of the Trust's Trustees or officers,
its investment adviser, its administrator, its principal
underwriter, if any, or the officers or directors of said
investment adviser, administrator, or principal underwriter,
portfolio securities of the Fund;
(11) Purchase or retain securities of other open-end investment
companies, except when such purchases are part of a merger,
consolidation, reorganization or assets acquisition;
<PAGE>
(12) Acquire real estate but it may lease office space for its own use
and invest in (1) readily marketable interests of real estate or
real estate limited partnership interests, investment trusts or
readily marketable securities of issuers (other than real estate
limited partnerships) whose business involves the purchase of real
estate; and (2) securities secured by real estate or interests
therein; or
(13) With respect to 75% of its total assets, (i) invest more than 5%
of its total assets in securities of any one issuer, excluding
securities issued or guaranteed by the United States government or
by its agencies and instrumentalities and options or (ii) purchase
more than 10% of the voting securities of any class of any issuer.
For the purpose of investment restrictions (1), (2) and (5), the
arrangements (including escrow, margin and collateral arrangements) made by any
such Fund with respect to its transactions in currency options, options on
securities and forward foreign currency exchange contracts shall not be
considered to be (i) a borrowing of money or the issuance of securities
(including senior securities) by that Fund, (ii) a pledge of its assets, (iii)
the purchase of a security on margin or (iv) a short sale or position.
(The following fundamental investment restrictions apply only to Australasia,
Britain, Ireland, Mexico, United States, Global and International.)
(1) Borrow money other than from banks and then only up to 1/3 of the
current market value of its total assets (including the amount
borrowed) and only if such borrowing is incurred as a temporary
measure for extraordinary or emergency purposes or to facilitate
the orderly sale of portfolio securities to accommodate redemption
requests; or issue any securities other than its shares of
beneficial interest except as appropriate to evidence indebtedness
which the Fund is permitted to incur. (Each Fund anticipates
paying interest on borrowed money at rates comparable to its yield
and no Fund has any intention of attempting to increase its net
income by means of borrowing);
(2) Pledge, mortgage or hypothecate its assets to an extent greater
than 1/3 of the total assets of the Fund taken at market;
(3) Buy or sell commodities, or commodity contracts (except that the
Fund may purchase or sell currencies and put and call options on
securities, indices or currencies and enter into forward foreign
currency exchange contracts), unless acquired as a result of
ownership of securities;
(4) Purchase any securities which would cause more than 25% of the
market value of its total assets at the time of such purchase to
be invested in the securities of issuers having their principal
business activities in the same industry, provided that there is
no limitation in respect to investments in obligations issued or
guaranteed by the U.S.
Government or its agencies or instrumentalities;
(5) Underwrite securities issued by other persons except to the extent
that the purchase of securities in accordance with a Fund's
investment objectives and policies directly from the issuer
thereof and the later disposition thereof may be deemed to be
underwriting;
(6) Make loans, except (i) through the loan of a portfolio security,
(ii) by entering into repurchase agreements and (iii) to the
extent that the purchase of debt instruments, if any, in
accordance with the Fund's investment objective and policies may
be deemed to be loans;
(7) Purchase or sell real estate, except that a Fund may (i) acquire
or lease office space for its own use, (ii) invest in securities
of issuers that invest in real estate or interests therein, (iii)
invest in securities that are secured by real estate or interests
therein, (iv) purchase and sell mortgage-related securities and
(v) hold and sell real estate acquired by a Fund as a result of
the ownership of securities; or
<PAGE>
(8) With respect to 75% of its total assets, (i) invest more than 5%
of its total assets in securities of any one issuer, excluding
securities issued or guaranteed by the U.S. Government or by its
agencies and instrumentalities and options thereon or (ii)
purchase more than 10% of the voting securities of any class of
any issuer.
For the purpose of fundamental investment restrictions (1) and (2) above
and nonfundamental investment restriction (h) below, the arrangements (including
escrow, margin and collateral arrangements) made by a Fund with respect to its
transactions in currency options, options on securities and forward foreign
currency exchange contracts shall not be considered to be (i) a borrowing of
money or the issuance of securities (including senior securities) by that Fund,
(ii) a pledge of its assets, (iii) the purchase of a security on margin or (iv)
a short sale or position.
The following are nonfundamental policies of each Fund which may be changed
by the Trustees without shareholder approval. The Funds have no current
intention of borrowing for leverage purposes, making securities loans or
engaging in short sales. The Funds have no current intention of investing more
than 5% of net assets in Rule 144A securities. Prior to engaging in such
activities, the Funds' Prospectus will be amended to disclose the intention to
do so. No Fund will:
(a) Purchase oil, gas or other mineral leases or purchase partnership
interests in oil, gas or other mineral exploration or development
programs;
(b) Invest more than 5% of its total assets in the securities of
issuers which, together with their predecessors, have a record of
less than three years' continuous operation;
(c) Purchase securities issued by any other investment company, except
by purchase in the open market where no commission or profit to
sponsor or dealer results from such purchase, other than the
customary broker's commission, or except where such purchase,
although not made on the open market, is part of a plan of merger
or consolidation. Subject to the preceding sentence, a Fund may
invest in other investment companies to the full extent allowed by
the 1940 Act. Under the 1940 Act, a Fund may not acquire more than
3% of the outstanding voting securities of another investment
company, invest more than 5% of its assets in any single
investment company or invest more than 10% of its assets in other
investment companies as a group;
(d) Enter into an agreement to purchase securities while its
borrowings exceed 5% of its total assets;
(e) Invest (1) more than 15% of its net assets in illiquid
investments, including repurchase agreements maturing in more than
seven days, securities that are not readily marketable and
restricted securities not eligible for resale pursuant to Rule
144A under the Securities Act of 1933 (the "1933 Act"); (2) more
than 10% of its net assets in restricted securities, excluding
securities eligible for resale pursuant to Rule 144A or foreign
securities which are offered or sold outside the United States in
accordance with Regulation S under the 1933 Act; or (3) more than
15% of its net assets in restricted securities (including those
eligible for resale under Rule 144A);
(f) Invest more than 10% of its total assets in shares of real estate
investment trusts that are not readily marketable or invest in
real estate limited partnerships;
(In addition, the following nonfundamental investment restrictions apply only to
Australasia, Britain, Ireland, Mexico, United States, Global and International.)
<PAGE>
(g) Purchase or retain securities of any issuer if 5% or more of the
issuer's securities are owned by those officers and Trustees of
the Trust or its investment adviser or administrator who own
individually more than 1/2 of 1% of the issuer's securities;
(h) Purchase securities on margin or make short sales except sales
against the box or purchase warrants; or
(i) Purchase from or sell to any of its Trustees or officers, its
investment adviser, its administrator, its principal underwriter,
if any, or the officers or directors of said investment adviser,
administrator, and principal underwriter, portfolio securities of
the Fund.
OFFICERS AND TRUSTEES
The officers and Trustees of the Trust are listed below. Except as
indicated, each individual has held the office shown or other offices in the
same company for the last five years. Those Trustees who are "interested
persons" (as defined in the 1940 Act) of the Trust, Wright, The Winthrop
Corporation ("Winthrop"), Eaton Vance, Eaton Vance's wholly owned subsidiary,
Boston Management and Research ("BMR"), Eaton Vance's parent, Eaton Vance Corp.
("EVC") or of Eaton Vance's trustee, Eaton Vance, Inc. ("EV") by virtue of their
affiliation with either the Funds, Wright, Winthrop, Eaton Vance, BMR, EVC, or
EV, are indicated by an asterisk (*).
PETER M. DONOVAN (53), PRESIDENT AND TRUSTEE*
President, Chief Executive Officer and Director of Wright and Winthrop; Vice
President, Treasurer and a Director of Wright Investors' Service Distributors,
Inc.
Address: 1000 Lafayette Boulevard, Bridgeport, CT 06604
H. DAY BRIGHAM, Jr. (69), VICE PRESIDENT, SECRETARY AND TRUSTEE*
Vice President of Eaton Vance, EVC, BMR and EV and a Director of EVC and EV;
Director, Trustee and officer of various investment companies managed by Eaton
Vance or BMR.
Address: 24 Federal Street, Boston, MA 02110
A.M. MOODY III (59), VICE PRESIDENT & TRUSTEE*
Senior Vice President, Wright and Winthrop; President, Wright
Investors' Service Distributors, Inc.
Address: 1000 Lafayette Boulevard, Bridgeport, CT 06604
WINTHROP S. EMMET (85), TRUSTEE
Retired New York City Attorney at Law; Trust Officer, First National City Bank,
New York, NY (1963-1971).
Address: Box 327, West Center Road, West Stockbridge, MA 01266
LELAND MILES (72), TRUSTEE
President Emeritus, University of Bridgeport (1987-present); President,
University of Bridgeport (1974-1987); Director, United Illuminating Company.
Address: Tide Mill Landing, 2425 Post Road, Suite 102, Southport, CT 06490
LLOYD F. PIERCE (77), TRUSTEE
Retired Vice Chairman (prior to 1984 -President), People's Bank, Bridgeport, CT;
Member, Board of Trustees, People's Bank, Bridgeport, CT; Board of Directors,
Southern Connecticut Gas Company; Chairman, Board of Directors, COSINE.
Address: 125 Gull Circle North, Daytona Beach, FL 32119
<PAGE>
GEORGE R. PREFER (61), TRUSTEE
Retired President and Chief Executive Officer, Muller Data Corp., New York, NY
(1983-1986) (1989-1990); President and Chief Executive Officer, InvestData
Corp., A Mellon Financial Services Company (1986-1989).
Address: 7738 Silver Bell Drive, Sarasota, FL 34241
RAYMOND VAN HOUTTE (71), TRUSTEE
President Emeritus and Counselor of The Tompkins County Trust Co., Ithaca,
NY (since January 1989); President and Chief Executive Officer, The Tompkins
County Trust Company (1973-1988); President, New York State Bankers Association
(1987-1988); Director, McGraw Housing Company, Inc., Deanco, Inc., Evaporated
Metal Products and Ithaco, Inc.
Address: One Strawberry Lane, Ithaca, NY 14850
JUDITH R. CORCHARD (57), VICE PRESIDENT
Executive Vice President, Senior Investment Officer, Chairman of the Investment
Committee and Director of Wright and Winthrop.
Address: 1000 Lafayette Boulevard, Bridgeport, CT 06604
JAMES L. O'CONNOR (51), TREASURER
Vice President, Eaton Vance, BMR and EV. Officer of various investment companies
managed by Eaton Vance or BMR.
Address: 24 Federal Street, Boston, MA 02110
JANET E. SANDERS (60), ASSISTANT TREASURER AND ASSISTANT SECRETARY
Vice President of Eaton Vance, BMR and EV. Officer of various investment
companies managed by Eaton Vance or BMR.
Address: 24 Federal Street, Boston, MA 02110
A. JOHN MURPHY (33), ASSISTANT SECRETARY
Assistant Vice President of Eaton Vance, BMR and EV since March 1, 1994;
employee of Eaton Vance since March 1993. State Regulations Supervisor, The
Boston Company (1991-1993) and Registration Specialist, Fidelity Management &
Research Co. (1986-1991). Officer of various investment companies managed by
Eaton Vance or BMR. Mr. Murphy was elected Assistant Secretary of the Trust on
June 21, 1995.
Address: 24 Federal Street, Boston, MA 02110
ERIC G. WOODBURY (38), ASSISTANT SECRETARY
Vice President of Eaton Vance, BMR and EV since February 1993; formerly,
associate attorney at Dechert, Price & Rhoads and Gaston & Snow. Officer of
various investment companies managed by Eaton Vance or BMR. Mr. Woodbury was
elected Assistant Secretary of the Trust on June 21, 1995.
Address: 24 Federal Street, Boston, MA 02110
WILLIAM J. AUSTIN, JR. (44), ASSISTANT TREASURER
Assistant Vice President of Eaton Vance, BMR and EV. Officer of various
investment companies managed by Eaton Vance or BMR. Mr.Austin was elected
Assistant Treasurer of the Trust on December 18, 1991.
Address: 24 Federal Street, Boston, MA 02110
All of the Trustees and officers hold identical positions with The Wright
Managed Income Trust, The Wright Managed Equity Trust and The Wright Managed
Blue Chip Series Trust (except Mr. Miles). The fees and expenses of those
Trustees (Messrs. Miles, Emmet, Pierce, Prefer and Van Houtte) who are not
"interested persons" of the Trust are paid by the Funds and the other series of
the Trust. They also received additional payments from other investment
companies for which Wright provides investment advisory services. The Trustees
who are "interested persons" of the Trust receive no compensation from the
Trust. The Trust does not have a retirement plan for its Trustees. For Trustee
compensation for the fiscal year ended December 31, 1995, see the following
table.
<PAGE>
COMPENSATION TABLE -- FISCAL YEAR ENDED DECEMBER 31, 1995
Registrant -- The Wright EquiFund Equity Trust
<TABLE>
Aggregate Compensation Pension Estimated Total
From The Wright Benefits Annual Compensation
Trustees EquiFund Equity Trust Accrued Benefits Paid(1)
- --------- ---------------------- --------- ----------- ------------
<S> <C> <C> <C> <C>
Winthrop S. Emmet $1,250 None None $5,000
Leland Miles $1,250 None None $4,750
Lloyd F. Pierce $1,250 None None $5,000
George R. Prefer $1,250 None None $5,000
Raymond Van Houtte $1,250 None None $5,000
(1) Total compensation paid is from the The Wright EquiFund Equity Trust
(17 Funds) and the other boards in the Wright Fund complex (16 Funds) for a
total of 33 Funds.
</TABLE>
Messrs. Miles, Emmet, Pierce, Prefer and Van Houtte are members of the
Special Nominating Committee of the Trustees of the Trust. The Special
Nominating Committee's function is selecting and nominating individuals to fill
vacancies, as and when they occur, in the ranks of those Trustees who are not
"interested persons" of the Trust, Eaton Vance, Wright or Winthrop. The Trust
does not have a designated audit committee, since the full board performs the
functions of such committee.
CONTROL PERSONS AND PRINCIPAL HOLDERS OF SHARES
As of March 31, 1996, the Trustees and officers of the Trust, as a group,
owned in the aggregate less than 1% of the outstanding shares of any Fund that
was then offering its shares to the public. The Funds' shares are held primarily
by trust departments of depository institutions and trust companies either for
their own account or for the account of their clients. From time to time,
several of these trust departments may be the record owners of 5% or more of the
outstanding shares of a particular Fund.
As of March 31, 1996, the following shareholders were record holders of the
following percentages of the outstanding shares of the Funds that were then
offering shares to the public:
<TABLE>
PERCENT OF OUTSTANDING SHARES OWNED
Belgium/ Ger- Hong Nether- Switzer-
NAME AND ADDRESS Luxembourg Britain many Kong Japan Mexico lands Nordic land
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Eternity Limited III 16.6%
c/o Unity NV
P.O. Box 594004
Miami, FL 33159
- ------------------------------------------------------------------------------------------------------------
Resources Trust Co. 92.3% 98.1% 97.8% 63.9% 61.7% 7.2% 65.7% 66.5% 81.3%
P.O. Box 3865
Englewood, CO 80155
- ------------------------------------------------------------------------------------------------------------
Charles Schwab & Co. Inc. 14.9% 26.8% 42.6% 15.3% 15.3% 8.3%
Attn: Mutual Funds
101 Montgomery St.
San Francisco, CA 94104
- ------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
INVESTMENT ADVISORY AND ADMINISTRATIVE SERVICES
The Funds have engaged The Winthrop Corporation ("Winthrop"), to act as
their investment adviser pursuant to Investment Advisory Contracts. Pursuant to
a service agreement effective February 1, 1996 between Winthrop and its
wholly-owned subsidiary, Wright Investors' Service, Inc. ("Wright"), Wright,
acting under the general supervision of the Trust's Trustees, furnishes the
Funds with investment advice and management services. Winthrop supervises
Wright's performance of this function and retains its contractual obligations
under its Investment Advisory Contracts with the Funds. The estate of John
Winthrop Wright may be considered a controlling person of Winthrop and Wright by
reason of its ownership of 29% of the outstanding shares of Winthrop. The
Trustees of the Trust are responsible for the general oversight of the conduct
of the Funds' business.
Pursuant to the Investment Advisory Contracts, Wright will carry out the
investment and reinvestment of the assets of the Funds, will furnish
continuously an investment program with respect to the Funds, will determine
which securities should be purchased, sold or exchanged, and will implement such
determinations. Wright will furnish to the Funds investment advice and
management services, office space, equipment and clerical personnel, and
investment advisory, statistical and research facilities. In addition, Wright
has arranged for certain members of the Eaton Vance and Wright organizations to
serve without salary as officers or Trustees of the Trust. In return for these
services, each Fund is obligated to pay a monthly advisory fee calculated at the
rates set forth in the Funds' current Prospectus. Effective February 1, 1996,
Winthrop will cause the Funds to pay to Wright the entire amount of the advisory
fee payable by each Fund under its Investment Advisory Contract with Winthrop.
It should be noted that, in addition to compensating Wright for its
advisory services to the Funds, the advisory fee is intended to partially
compensate Wright for the maintenance of the Indices which form the basis for
the selection of securities for the Funds. Other mutual funds and accounts
advised by Wright may use the Indices as may other entities not affiliated with
Wright.
Prior to January 20, 1994 for the Belgium/Luxembourg, Japan, Nordic and
Switzerland Funds and prior to August 25, 1994 for the Hong Kong and Netherlands
Funds, under the Funds' prior investment advisory contracts, each Fund was
required to pay Winthrop a monthly advisory fee calculated at the following
annual rates: 0.50% of average daily net assets under $500 million; 0.48% of
average daily net assets of $500 million and under $1 billion; and 0.43% of
average daily net assets of $1 billion and over.
The following table sets forth the net assets of each Fund that was
offering its shares as at December 31, 1995 and the advisory fee earned from
each such Fund during the fiscal years ended December 31, 1995, 1994 and 1993.
As noted above, the previous investment advisory contracts for such Funds
provided for a fee calculated at a lower rate than is currently applicable to
such Funds. At December 31, 1995, the Australasia, Austria, Canada, France,
Ireland, United States, Global and International Funds had not commenced
operations.
<TABLE>
Aggregate Fee Earned for Fee Earned for Fee Earned for
FUNDS Net Assets at 12/31/95 Fiscal Year Ended 12/31/95 Fiscal Year Ended 12/31/94 Fiscal Year Ended 12/31/93
- ----- ---------------------- -------------------------- -------------------------- ---------------------------
<S> <C> <C> <C> <C>
Belgium/Luxembourg(1) $14,752,875 $103,043 $55,703 --
Britain(2) 13,932,026 83,324 -- --
Germany(3) 16,418,960 82,313 -- --
Hong Kong 25,399,331 241,428 142,606 $33,901
Japan(4) 21,630,983 120,678 50,253 --
Mexico(5) 32,493,042 167,535 63,619 --
Netherlands 7,217,537 49,092(b) 39,105 17,885(a)
Nordic(4) 3,504,305 27,207(c) 50,321 --
Switzerland(4) 7,628,255 52,298 37,757 --
<FN>
(1): Start of business, February 15, 1994; (2) Start of business, April 20,
1995; (3): Start of business, April 19, 1995; (4) Start of business, February
14, 1994; (5): Start of business, August 2, 1994; (a): To enhance the net income
of the Netherlands Fund, Winthrop made a reduction of its fee in the amount of
$16,439; (b) To enhance the net income of the Netherlands Fund, Winthrop made a
reduction of its fee in the amount of $2,868; (c): To enhance the net income of
the Nordic Fund, Winthrop made a reduction of its fee in the amount of $17,776
and was allocated $13,004 of expenses related to the operation of the Fund.
</FN>
</TABLE>
<PAGE>
The Trust has engaged Eaton Vance to act as the administrator for each Fund
pursuant to an Administration Agreement. For its services under the
Administration Agreement, Eaton Vance is entitled to receive a monthly
administration fee from each Fund at the annual rates set forth in the Funds'
current Prospectus. The following table sets forth the administration fees
earned (and applicable reductions) from each Fund that was offering its shares
at December 31, 1995 for the fiscal years ended December 31, 1995, 1994 and
1993.
<TABLE>
Fee Earned for the Fee Earned for the Fee Earned for the
FUNDS Fiscal Year Ended 12/31/95 Fiscal Year Ended 12/31/94 Fiscal Year Ended 12/31/93
- ------ --------------------------- -------------------------- ---------------------------
<S> <C> <C> <C>
Belgium/Luxembourg(1) $13,739 $ 7,427 --
Britain(2) 11,110 -- --
Germany(3) 10,975 -- --
Hong Kong 32,190 23,531 $ 6,780
Japan(4) 16,090 6,700 --
Mexico(5) 22,338 8,483 --
Netherlands 6,544 7,215 3,577
Nordic(4) 3,628 6,709 --
Switzerland(4) 6,973 5,034 --
<FN>
(1) Start of business, February 15, 1994; (2): Start of business, April 20,
1995; (3) Start of business, April 19, 1995; (4): Start of business, February
14, 1994; (5): Start of business, August 2, 1994.
</FN>
</TABLE>
Eaton Vance and EV are both wholly owned subsidiaries of EVC. BMR is a
wholly-owned subsidiary of Eaton Vance. Eaton Vance and BMR are both
Massachusetts business trusts, and EV is the trustee of Eaton Vance and BMR. The
Directors of EV are H. Day Brigham, Jr., Landon T. Clay, M. Dozier Gardner,
James B. Hawkes and Benjamin A. Rowland, Jr. The Directors of EVC consist of the
same persons and John G. L. Cabot and Ralph Z. Sorenson. Mr. Clay is chairman
and Mr. Gardner is president and chief executive officer of EVC, Eaton Vance,
BMR and EV. All of the issued and outstanding shares of Eaton Vance and EV are
owned by EVC. All of the issued and outstanding shares of BMR are owned by Eaton
Vance. All shares of the outstanding Voting Common Stock of EVC are deposited in
a Voting Trust which expires on December 31, 1996, the Voting Trustees of which
are Messrs. Brigham, Clay, Gardner, Hawkes and Rowland. The Voting Trustees have
unrestricted voting rights for the election of Directors of EVC. All of the
outstanding voting trust receipts issued under said Voting Trust are owned by
certain of the officers of Eaton Vance and BMR who are also officers and
Directors of EVC and EV. As of March 31, 1996, Messrs. Clay, Gardner and Hawkes
each owned 24% of such voting trust receipts, and Messrs. Rowland and Brigham
owned 15% and 13%, respectively, of such voting trust receipts. Mr. Brigham is
an officer and Trustee of the Trust, and a member of the Eaton Vance, EVC, BMR
and EV organizations. Messrs. Austin, Murphy, O'Connor and Woodbury and Ms.
Sanders, who are officers of the Trust, are also members of the Eaton Vance, BMR
and EV organizations. Eaton Vance will receive the fees paid under the
Administration Agreement.
EVC owns all of the stock of Energex Energy Corporation, which is engaged
in oil and gas exploration and development. In addition, Eaton Vance owns all
the stock of Northeast Properties, Inc., which is engaged in real estate
investment. EVC owns all the stock of Fulcrum Management, Inc. and MinVen, Inc.,
which are engaged in precious metal mining venture investment and management.
EVC, Eaton Vance, BMR and EV may also enter into other businesses.
Each Fund will be responsible for all expenses relating to its operations
and not designated as expenses of Wright under the Investment Advisory Contracts
or of Eaton Vance under the Administration Agreement, including, without
limitation, the fees and expenses of its custodian and transfer agent, including
those incurred for determining each Fund's net asset value and keeping each
Fund's books; the cost of share certificates; membership dues in investment
company organizations; brokerage commissions
<PAGE>
and fees; fees and expenses of registering its shares; expenses of reports
to shareholders, proxy statements and other expenses of shareholders' meetings;
insurance premiums; printing and mailing expenses; interest, taxes and corporate
fees; legal and accounting expenses; expenses of Trustees not affiliated with
Eaton Vance or Wright; distribution expenses incurred pursuant to the Trust's
distribution plan; and investment advisory and administration fees. Each Fund
will also bear expenses incurred in connection with litigation in which the
Trust is a party and the legal obligation the Trust may have to indemnify its
officers and Trustees with respect thereto.
The Investment Advisory Contracts of all the Funds and the Administration
Agreement of all the Funds will remain in effect until February 28, 1997. The
Funds' Investment Advisory Contracts may be continued with respect to each Fund
from year to year thereafter so long as such continuance after February 28,
1997, as the case may be, is approved at least annually (i) by the vote of a
majority of the Trustees who are not "interested persons" of the Trust, Eaton
Vance or Wright cast in person at a meeting specifically called for the purpose
of voting on such approval and (ii) by the Board of Trustees of the Trust or by
vote of a majority of the shareholders of that Fund. The Investment Advisory
Contracts and Administration Agreement may be terminated as to a Fund at any
time without penalty on sixty (60) days' written notice by the Board of Trustees
or Directors of either party, or by vote of the majority of the outstanding
shares of that Fund, and each agreement will terminate automatically in the
event of its assignment. Each agreement provides that, in the absence of willful
misfeasance, bad faith, gross negligence or reckless disregard of its
obligations or duties to the Trust under such agreement on the part of Eaton
Vance or Wright. Eaton Vance or Wright will not be liable to the Trust for any
loss incurred.
CUSTODIAN
Investors Bank & Trust Company ("IBT"), 89 South Street, Boston,
Massachusetts, acts as custodian for the Funds. IBT has the custody of all cash
and securities of the Funds, maintains the Funds' general ledgers and computes
the daily net asset value per share. In such capacity it attends to details in
connection with the sale, exchange, substitution, transfer or other dealings
with the Funds' investments, receives and disburses all funds and performs
various other ministerial duties upon receipt of proper instructions from the
Funds. IBT charges custody fees which are competitive within the industry. A
portion of the custody fee for each fund managed by Wright for which IBT serves
as custodian is based upon a schedule of percentages applied to the aggregate
assets of those funds, the fees so determined being then allocated among such
funds relative to their size. In addition, each fund pays to IBT a fee based on
the number of portfolio transactions, a fee based on the number of portfolio
holdings, and a fee for bookkeeping and valuation services. These fees are then
reduced by a credit for cash balances of the particular fund at IBT equal to 75%
of the average 91-day, U.S. Treasury Bill auction rate for the billing period
applied to the particular fund's average daily collected balances for the
period.
The Funds will employ foreign sub-custodians, the selection of which are
subject to annual review and approval by the Trustees in accordance with Rule
17f-5 under the 1940 Act.
INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
Deloitte & Touche LLP, 125 Summer Street, Boston, Massachusetts, are the
Trust's independent certified public accountants, providing audit services, tax
return preparation, and assistance and consultation with respect to the
preparation of filings with the Securities and Exchange Commission and
preparation of the Funds' federal and state tax returns.
<PAGE>
BROKERAGE ALLOCATION
Purchases and sales of securities on a securities exchange are effected by
brokers, and the Funds pay a brokerage commission for this service. In
transactions on stock exchanges in the United States, these commissions are
negotiated, whereas on many foreign stock exchanges the commissions are fixed.
In the over-the-counter market, securities are normally traded on a "net" basis
with dealers acting as principal for their own accounts without a stated
commission, although the price of the securities usually includes a profit to
the dealer. In underwritten offerings, securities are purchased at a fixed price
which includes an amount of compensation to the underwriter, generally referred
to as the underwriter's concession or discount. On occasion, certain money
market instruments may be purchased directly from an issuer, in which case no
commissions or discounts are paid.
Wright places the portfolio security transactions for each Fund, which in
some cases may be effected in block transactions which include other accounts
managed by Wright. Wright provides similar services directly for bank trust
departments and other clients. Wright seeks to execute portfolio security
transactions on the most favorable terms and in the most effective manner
possible. In seeking best execution, Wright will use its best judgment in
evaluating the terms of a transaction, and will give consideration to various
relevant factors, including without limitation the size and type of the
transaction, the nature and character of the markets for the security, the
confidentiality, speed and certainty of effective execution required for the
transaction, the reputation, experience and financial condition of the
broker-dealer and the value and quality of service rendered by the broker-dealer
in other transactions, and the reasonableness of the brokerage commission or
markup, if any.
It is expected that on frequent occasions there will be many broker-dealer
firms which will meet the foregoing criteria for a particular transaction. In
selecting among such firms, the Funds may give consideration to those firms
which supply brokerage and research services, quotations and statistical and
other information to Wright for their use in servicing their accounts. Such
brokers may include firms which purchase investment services from Wright. The
term "brokerage and research services" includes advice as to the value of
securities, the advisability of investing in, purchasing or selling securities,
and the availability of securities or purchasers or sellers of securities;
furnishing analyses and reports concerning issuers, industries, securities,
economic factors and trends, portfolio strategy and the performance of accounts;
and effecting securities transactions and performing functions incidental
thereto (such as clearance and settlement). Such services and information may be
useful and of value to Wright in servicing advisory clients other than the Fund
which paid the brokerage commissions and the other Funds. The services and
information furnished by a particular firm may not necessarily be used in
connection with the Funds or the Fund which paid brokerage commissions to such
firm. The advisory fee paid by the Funds to Wright is not reduced as a
consequence of Wright's receipt of such services and information. While such
services and information are not expected to reduce Wright's normal research
activities and expenses, Wright would, through use of such services and
information, avoid the additional expenses which would be incurred if Wright
should attempt to develop comparable services and information through its own
staff.
Subject to the requirement that Wright shall use its best efforts to seek
to execute each Fund's portfolio security transactions at advantageous prices
and at reasonably competitive commission rates, Wright, as indicated above, is
authorized to consider as a factor in the selection of any broker-dealer firm
with whom a Fund's portfolio orders may be placed the fact that such firm has
sold or is selling shares of the Funds or of other investment companies
sponsored by Wright. This policy is consistent with a rule of the National
Association of Securities Dealers, Inc., which rule provides that no firm which
is a member of the Association shall favor or disfavor the distribution of
shares of any particular investment company or group of investment companies on
the basis of brokerage commissions received or expected by such firm from any
source.
Under the Funds' Investment Advisory Contracts, Wright has the authority to
pay commissions on portfolio transactions for brokerage and research services
exceeding that which other brokers or dealers might charge provided certain
conditions are met.
<PAGE>
The Funds' Investment Advisory Contracts expressly recognize the practices
which are provided for in Section 28(e) of the Securities Exchange Act of 1934
by authorizing the selection of a broker or dealer which charges a Fund a
commission which is in excess of the amount of commission another broker or
dealer would have charged for effecting that transaction if it is determined in
good faith that such commission was reasonable in relation to the value of the
brokerage and research services which have been provided.
If purchases or sales of securities of the Funds and one or more other
investment companies or clients supervised by Wright are considered at or about
the same time, transactions in such securities will be allocated among the
several investment companies and clients in a manner deemed equitable to all by
Wright, taking into account the respective sizes of the Funds, and the amount of
securities to be purchased or sold. It is recognized that it is possible that in
some cases this procedure could have a detrimental effect on the price or volume
of the security so far as the Funds are concerned. However, in other cases it is
possible that the ability to participate in volume transactions and to negotiate
lower brokerage commissions will be beneficial to the Funds.
During the fiscal years ended December 31, 1995, 1994 and 1993, the Funds
that were offering their shares during such periods paid the following amounts
on brokerage commissions:
<TABLE>
1995 1994 1993
---- ---- ----
<S> <C> <C> <C>
Belgium/Luxembourg(1)....................... $ 65,469 $ 50,547 --
Britain(2).................................. 130,965 -- --
Germany(3).................................. 77,270 -- --
Hong Kong .................................. 366,376 403,603 $104,578
Japan(4).................................... 270,491 89,821 --
Mexico(5)................................... 112,927 82,118 --
Netherlands................................. 57,747 54,183 39,612
Nordic(4)................................... 51,359 49,398 --
Switzerland(4).............................. 66,894 42,474 --
<FN>
(1) Start of business, February 15, 1994; (2): Start of business, April 20,
1995; (3) Start of business, April 19, 1995; (4): Start of business, February
14, 1994; (5): Start of business, August 2, 1994.
</FN>
</TABLE>
PRINCIPAL UNDERWRITER
The Trust has adopted a Distribution Plan (the "Plan") on behalf of the
Funds in accordance with Rule 12b-1 under the 1940 Act and Article III, Section
26 of the Rules of Fair Practice of the National Association of Securities
Dealers, Inc. (the "NASD").
The Trust has entered into a distribution contract on behalf of the Funds
with its Principal Underwriter, Wright Investors' Service Distributors, Inc.
("WISDI"), a wholly-owned subsidiary of Winthrop, providing for WISDI to act as
a separate distributor of each Fund's shares.
Under this contract and the Plan, it is currently intended that each Fund
will pay to WISDI for distribution services and personal and account maintenance
services in connection with the Fund's shares an annual fee equal to .25% of
such Fund's average daily net assets. Appropriate adjustments to payments made
pursuant to the Plan shall be made whenever necessary to assure that no payment
is made by a Fund which exceeds the applicable maximum cap imposed on
asset-based, front-end and deferred sales charges by Section 26(d) of Article
III of the Rules of Fair Practice of the NASD.
Pursuant to the Plan, the Trust, on behalf of each Fund, is authorized to
compensate WISDI for (1) distribution services and (2) personal and account
maintenance services performed and expenses incurred by WISDI in connection with
the Fund's shares. The amount of such compensation, including compensation for
personal and account maintenance services, paid during any one year shall not
exceed .25% of the
<PAGE>
average daily net assets of the Fund. Such compensation shall
be calculated and accrued daily and paid quarterly.
Distribution services and expenses for which WISDI may be compensated
pursuant to this Plan include, without limitation: compensation to and expenses
incurred by Authorized Dealers and the officers, employees and sales
representatives of Authorized Dealers and of WISDI; allocable overhead, travel
and telephone expenses; the printing of prospectuses and reports for other than
existing shareholders; the preparation and distribution of sales literature and
advertising; and all other expenses (other than personal and account maintenance
services as defined below) incurred in connection with activities primarily
intended to result in the sale of the Funds' shares.
Personal and account maintenance services include, but are not limited to,
payments made to or on account of WISDI, Authorized Dealers and their respective
officers, employees and sales representatives who respond to inquiries of, and
furnish assistance to, shareholders concerning their ownership of Fund shares
and their accounts or who provide similar services not otherwise provided by or
on behalf of the Fund.
The Plan is a compensation plan which provides for the payment of a
specified distribution fee without regard to the distribution expenses actually
incurred by WISDI. Accordingly, an amount equal to 1/365 of the annual
distribution fee will be accrued on each day as an expense of each Fund, which
will reduce its net investment income.
Under the Plan, the President or Vice President of the Trust shall provide
to the Trustees for their review, and the Trustees shall review at least
quarterly, a written report of the amounts expended under the Plan and the
purposes for which such expenditures were made.
Under its terms, the Plan remains in effect from year to year, provided
such continuance is approved annually by a vote of its Trustees, including a
majority of the Trustees who are not interested persons of the Trust and who
have no direct or indirect financial interest in the operation of the Plan. The
Plan may not be amended to increase materially the amount to be spent for the
services described therein as to a Fund without approval of a majority of the
outstanding voting securities of that Fund and all material amendments of the
Plan must also be approved by the Trustees of the Trust in the manner described
above. The Plan may be terminated at any time as to a Fund without payment of
any penalty by a vote of a majority of the Trustees of the Trust who are not
interested persons of the Trust and who have no direct or indirect financial
interest in the operation of the Plan or by vote of a majority of the
outstanding voting securities of that Fund. So long as the Plan is in effect,
the selection and nomination of Trustees who are not interested persons of the
Trust shall be committed to the discretion of the Trustees who are not such
interested persons. The Trustees of the Trust have determined that in their
judgment there is a reasonable likelihood that the Plan will benefit the Funds
and their shareholders.
The following table shows the fee payable to WISDI under the Plans and the
amount of such fee actually paid by each Fund that was then offering its shares
for the fiscal year ended December 31, 1995.
<TABLE>
Distribution Distribution Expenses Distribution Distribution Expenses
Expenses Reduced by the Expenses Paid as a % of Fund's
FUNDS Allowable Principal Underwriter Paid by Fund Average Net Asset Value
- ----- --------- --------------------- ------------ -----------------------
<S> <C> <C> <C> <C>
Belgium/Luxembourg $34,348 -- $34,348 0.25%
Britain(1) 27,775 -- 27,775 0.25%
Germany(2) 27,438 -- 27,438 0.25%
Hong Kong 80,476 -- 80,476 0.25%
Japan 40,226 -- 40,226 0.25%
Mexico 55,845 -- 55,845 0.25%
Netherlands 16,361 $ 9,853 6,508 0.10%
Nordic 9,069 5,925 3,144 0.09%
Switzerland 17,432 9,347 8,085 0.12%
<FN>
(1) Start of business, April 20, 1995; (2) Start of business, April 19, 1995.
</FN>
</TABLE>
<PAGE>
For the fiscal year ended December 31, 1995, it is estimated that WISDI
spent approximately the following amounts on behalf of the Wright Funds that
were offering their shares during such fiscal year.
Wright Investors' Service Distributors, Inc.
Financial Summaries for the Year 1995
<TABLE>
Printing Travel Commisions Admin-
& Mailing and and istration
FUNDS Promotional Prospectuses Entertainment Service Fees and Other TOTAL
- ----- ----------- ------------ ------------- ------------ ---------- --------
<S> <C> <C> <C> <C> <C> <C>
Belgium/Luxembourg $ 1,284 $ 3,435 $ 1,717 $ 26,194 $ 1,717 $34,347
Britain(1) 1,038 2,778 1,389 21,182 1,389 27,776
Germany(2) 1,026 2,744 1,372 20,925 1,372 27,439
Hong Kong 3,008 8,048 4,024 61,372 4,024 80,476
Japan 1,504 4,023 2,011 30,677 2,011 40,226
Mexico 2,088 5,585 2,792 42,588 2,792 55,845
Netherlands 243 651 325 4,963 325 6,507
Nordic 118 314 157 2,398 157 3,144
Switzerland 302 809 404 6,166 404 8,085
<FN>
(1): Start of business, April 20, 1995; (2) Start of business, April 19, 1995.
</FN>
</TABLE>
PERFORMANCE INFORMATION
The average annual total return of each Fund is determined for a specified
period by calculating the actual dollar amount of investment return on a $1,000
investment in the Fund made at the maximum public offering price (net asset
value) at the beginning of the period, and then calculating the annual
compounded rate of return which would produce that amount. Total return for a
period of one year is equal to the actual return of the Fund during that period.
This calculation assumes that all dividends and distributions are reinvested at
net asset value on the reinvestment dates during the period.
The average annual total return will be calculated using the following
formula:
n
P (1 + T) = ERV
where: P = A hypothetical initial payment of $1,000
T = Average annual total return
n = Number of years
ERV = Ending redeemable value of a hypothetical $1,000 payment at
the end of the period.
Each Fund's yield is computed by dividing its net investment income per
share earned during a recent thirty-day period by the product of the average
daily number of shares outstanding and entitled to receive dividends during the
period and the maximum offering price (net asset value) per share on the last
day of the period. The results are compounded on a bond equivalent (semi-annual)
basis and then they are annualized. Net investment income per share is equal to
the Fund's dividends and interest earned during the period, reduced by accrued
expenses for the period.
The yield earned by each Fund will be calculated using the following
formula:
6
YIELD = 2 [ ( a-b + 1) - 1 ]
---
cd
where: a = Dividends and interest earned during the period
b = Expenses accrued for the period (after reductions)
c = The average daily number of shares outstanding during the
period that were entitled to receive dividends
d = The maximum offering price (net asset value) per share on the
last day of the period.
<PAGE>
A Fund's yield or total return may be compared to the Consumer Price Index
and various domestic or foreign securities indices. A Fund's yield or total
return and comparisons with these indices may be used in advertisements and in
information furnished to present or prospective shareholders.
From time to time, evaluations of a Fund's performance made by independent
sources may be used in advertisements and in information furnished to present or
prospective shareholders. These may include rankings prepared by Lipper
Analytical Services, Inc., an independent service which monitors the performance
of mutual funds. The Lipper performance analysis reflects the reinvestment of
dividends and capital gain distributions but does not take sales charges into
consideration and is prepared without regard to tax consequences.
The following table shows the average annual total return for the one year,
three year, five year and life of Fund (as applicable) for the periods ended
December 31, 1995:
<TABLE>
Inception
FUNDS One Year Three Years Five Years Life of Fund Date of Fund
----- -------- ----------- ---------- ------------ ------------
<S> <C> <C> <C> <C> <C>
Belgium/Luxembourg 20.3% -- -- 23.7% 2/15/94
Britain -- -- -- 11.1% 4/20/95
Germany -- -- -- (7.1%) 4/19/95
Hong Kong(1) 1.6% 5.7% 13.0% 8.0% 6/28/90
Japan (9.1%) -- -- (6.1%) 2/14/94
Mexico (33.4%) -- -- (42.3%) 8/02/94
Netherlands(2) 18.8% 16.6% 9.9% 5.9% 6/28/90
Nordic(3) 19.8% -- -- 9.3% 2/14/94
Switzerland(4) 18.4% -- -- 6.3% 2/14/94
<FN>
(1) If a portion of the Hong Kong Fund's expenses had not been subsidized for
the four years ended December 31, 1993, the Fund would have had lower returns;
(2) If a portion of the Netherlands Fund's expenses had not been subsidized for
the year ended Decemer 31, 1995 and the four years ended December 31, 1993, the
Fund would have had lower returns; (3) If a portion of the Nordic Fund's
expenses had not been subsidized for the year ended Decemer 31, 1995, the Fund
would have had lower returns; (4) If a portion of the Switzerland Fund's
expenses had not been subsidized for the two years ended December 31, 1995, the
Fund would have had lower returns.
</FN>
</TABLE>
TAXES
Among the requirements for qualification of each Fund as a regulated
investment company are the following: (1) at least 90% of the Fund's annual
gross income must be derived from interest, dividends, gains from the sale or
other disposition of stock or securities and certain other types of income; (2)
less than 30% of the Fund's annual gross income may be derived from gross gains
from the sale or disposition of stock or securities or certain other investments
held for less than three months; and (3) at the close of each quarter of its
taxable year, (a) at least 50% of the value of the Fund's assets must be
comprised of cash and cash items (including receivables), U.S. Government
securities, securities of other regulated investment companies and other
securities limited in respect of any one issuer to not more than 5% of the value
of the Fund's total (gross) assets and not more than 10% of the voting
securities of such issuer and (b) not more than 25% of the value of its total
(gross) assets may be invested in the securities of any one issuer (other than
U.S. Government securities and securities of other regulated investment
companies) or certain other issuers controlled by the Fund. These requirements
may limit a Fund's activities in foreign currencies and foreign currency
futures, options or forward contracts to the extent gains relating to such
latter activities are considered not directly related to the Fund's principal
business of investing in securities.
<PAGE>
Each Fund's use of the accounting practice known as equalization may affect
the amount, timing and character of distributions to shareholders. Investment by
a Fund in a stock of a "passive foreign investment company" may cause the Fund
to recognize income prior to the receipt of distributions from such a company or
to become subject to tax upon the receipt of certain excess distributions from,
or upon disposition of its stock of, such a company, although an election may in
some cases be available that would ameliorate some of these adverse tax
consequences.
A Fund's transactions in foreign currencies, foreign currency-denominated
debt securities, foreign currency forward contracts, certain foreign currency
options or futures contracts, and receivables or payables denominated in a
foreign currency are subject to special tax rules under Section 988 of the Code
which will generally cause gains and losses from these transactions to be
treated as ordinary income and losses. Certain forward positions held by a Fund
may be required to be "marked to market" (treated as if they were closed out) on
the last business day of each taxable year. In addition, if certain of these
positions held by the Fund substantially diminish the Fund's risk of loss with
respect to securities or other positions in the Fund's portfolio, this
combination of positions may be treated as a straddle for tax purposes with the
possibility of deferral of losses and adjustments in the holding period of
securities held by the Fund.
The portion of the distributions of United States Fund or Global Fund, if
any, attributable to dividends it receives from U.S. domestic corporations may
qualify for the dividends-received deduction for corporate shareholders, subject
to compliance with certain minimum holding-period requirements and
debt-financing restrictions. Such portion, if any, may increase liability for
alternative minimum tax and result in basis adjustments under certain
circumstances.
Shareholders may realize a taxable gain or loss upon a redemption or
exchange of shares of a Fund. Any loss realized upon the redemption or exchange
of shares of a Fund with a tax holding period of six months or less will be
treated as a long-term capital loss to the extent of any distributions of net
long-term capital gains with respect to such shares. All or a portion of any
loss realized upon the redemption or exchange of shares may be disallowed to the
extent shares of the same Fund are purchased (including shares acquired by means
of reinvested dividends) within the period beginning 30 days before and ending
30 days after the date of such redemption or exchange.
As of December 31, 1995, the Funds, for federal income tax purposes, had
capital loss carryovers as follows: Germany - $27,166, Mexico - $6,623,729, and
Nordic - $264,069, each expiring in 2003 and Hong Kong - $1,163,853 expiring in
2002 and $4,577,781 expiring in 2003.
<PAGE>
WRIGHT EQUIFUND -- BELGIUM/LUXEMBOURG
PORTFOLIO OF INVESTMENTS AS OF DECEMBER 31, 1995
- -------------------------------------------------
<TABLE>
Shares Description Value
- ----------------------------------------------------------------------------
<S> <C> <C>
BEVERAGES -- 3.7%
34,600 Quilmes Industries SA $ 539,760
------------
CHEMICALS -- 3.2%
1,340 Tessenderlo Chemie $ 474,669
------------
CONSTRUCTION -- 9.0%
1,700 Cimenteries CBR Cementbed $ 685,950
12,650 Desimpel Kortemark CY NV 643,890
------------
$ 1,329,840
------------
DIVERSIFIED -- 5.6%
620 UCB SA $ 825,297
------------
ELECTRONICS -- 4.2%
5,170 Barco N.V. (Industries) $ 613,092
------------
FINANCIAL -- 10.3%
2,110 Generale de Banque SA $ 747,426
2,810 Kredietbank NPV 767,666
------------
$ 1,515,092
------------
METAL PRODUCTS MFRS. -- 3.7%
670 Bekaert SA $ 552,073
------------
REAL ESTATE & OTHER FINANCIALS -- 25.0%
2,550 Algem Maastch Voor Nijve-Afv $ 762,487
18,830 Cie Belge de Paricip Paribas 703,806
5,560 Fortis AG 676,344
13,000 Gervaert Photo-Producten NV 799,524
1,100 Sofina 559,718
136 Socfinasia 189,235
------------
$ 3,691,114
------------
RECREATION -- 5.0%
13,900 Audiofina $ 739,161
------------
RETAILERS -- 11.5%
2,060 Colruyt SA $ 556,473
15,500 Delhaize Le Ps 644,614
11,500 G.I.B. Holdings Ltd. 504,859
------------
$ 1,705,946
------------
UTILITIES -- 14.0%
3,170 Electrabel $ 753,993
4,970 Powerfin SA 652,703
1,570 Reunies Electrobel & Tractebela 648,165
------------
$ 2,054,861
------------
MISCELLANEOUS -- 5.0%
4,480 Ackermans & Van Haaren $ 739,817
------------
TOTAL INVESTMENTS
(identified cost, $12,710,191)-- 100.2% $14,780,722
OTHER ASSETS, LESS LIABILITIES-- (0.2%) (27,847)
-----------
NET ASSETS-- 100.0% $14,752,875
===========
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT EQUIFUND -- BRITAIN
PORTFOLIO OF INVESTMENTS AS OF DECEMBER 31, 1995
- --------------------------------------------------
<TABLE>
Shares Description Value
- ----------------------------------------------------------------------------
<S> <C> <C>
CHEMICALS -- 4.2%
156,600 Allied Colloids Group PLC $ 323,455
24,800 Laporte PLC 258,047
------------
$ 581,502
------------
DIVERSIFIED -- 3.0%
81,100 BTR Limited $ 414,370
------------
ELECTRONICS -- 7.6%
31,000 Farnell Electronic $ 345,907
28,000 Siebe PLC 345,045
37,900 Smiths Industries 374,341
------------
$ 1,065,293
------------
FINANCIAL -- 2.5%
22,100 HSBC Holdings PLC $ 345,101
------------
FOOD -- 7.7%
53,900 Dalgety PLC $ 339,430
130,200 Hillsdown Holdings PLC 343,741
61,200 Unigate PLC 390,154
------------
$ 1,073,325
------------
MACHINERY & EQUIPMENT -- 7.0%
119,933 Halma PLC $ 325,948
54,800 Powerscreen Int'l. 329,354
98,800 Weir Group PLC (The) 322,984
------------
$ 978,286
------------
METAL PRODUCERS -- 3.4%
105,200 Antofagasta Hldgs. $ 477,874
------------
METAL PRODUCT MANUFACTURERS -- 2.3%
126,400 Suter PLC $ 321,931
------------
OIL, GAS & COAL -- 7.1%
126,200 British-Borneo Petro Syndicat. $ 684,000
21,200 Burmah Castrol PLC 307,342
------------
$ 991,342
------------
PRINTING & PUBLISHING -- 4.8%
32,000 Pearson PLC $ 309,854
41,000 United Newspapers 353,022
------------
$ 662,876
------------
REAL ESTATE & OTHER FINANCIALS -- 5.5%
125,600 Cattle's Holdings PLC $ 414,496
27,737 Provident Financial PLC 352,573
------------
$ 767,069
------------
RETAILERS -- 9.7%
31,000 Kwik Save Group PLC $ 240,715
48,000 Marks & Spencer PLC Eng. 335,448
103,400 Tesco PLC 476,923
135,600 WM. Morrison Supermarkets PLC 294,822
------------
$ 1,347,908
------------
TEXTILES -- 3.1%
405,000 Readicut International PLC $ 430,841
------------
TRANSPORTATION -- 4.0%
134,200 Christian Salvesen PLC $ 552,293
------------
UTILITIES -- 11.9%
49,851 Cable & Wireless $ 356,125
27,165 National Grid Holdings 84,164
25,388 Northern Electricity PLC 247,014
35,700 Northwest Water PLC 341,523
40,000 Thames Water PLC 348,804
78,700 Vodafone Group PLC 282,331
------------
$ 1,659,961
------------
MISCELLANEOUS -- 10.4%
125,900 Nurdin & Peacock PLC $ 298,172
36,000 Reuters Holdings PLC 329,578
51,100 Watson & Philip PLC 428,535
56,000 Wolseley PLC 392,226
------------
$ 1,448,511
------------
</TABLE>
<PAGE>
TOTAL INVESTMENTS
(identified cost, $12,521,140) -- 94.2% $13,118,483
OTHER ASSETS, LESS LIABILITIES -- 5.8% 813,543
------------
NET ASSETS -- 100.0% $13,932,026
===========
See notes to financial statements
<PAGE>
WRIGHT EQUIFUND -- GERMANY
PORTFOLIO OF INVESTMENTS AS OF DECEMBER 31, 1995
- -------------------------------------------------
<TABLE>
Shares Description Value
- ----------------------------------------------------------------------------
<S> <C> <C>
APPAREL -- 3.2%
630 Boss, Hugo $ 530,665
------------
AUTOMOTIVE -- 3.2%
1,020 Bayerische Motoren Werke AG $ 521,893
------------
CHEMICALS -- 7.2%
2,290 Bayer AG $ 603,387
6,200 Fresenius AG 586,982
------------
$ 1,190,369
------------
CONSTRUCTION -- 13.7%
1,210 Dyckerhoff $ 259,436
828 Heidelberger Zement AG German 518,761
12,700 Kampa DM50 508,354
1,730 Walter Bau AG 373,338
1,640 Weru 585,674
------------
$ 2,245,563
------------
DIVERSIFIED -- 3.7%
1,860 Industrieverwaltungsgesellsc $ 605,325
------------
DRUGS -- 12.9%
760 Altana Ind-Aktien DM50 $ 441,768
730 Beiersdorf 510,721
8,550 Schering AG 565,615
1,120 Wella AG 601,907
------------
$ 2,120,011
------------
ELECTRICAL -- 3.0%
650 Rheinelektra DM50 $ 493,213
------------
ELECTRONICS -- 7.0%
3,900 SAP AG $ 604,072
1,660 Vossloh AG 537,348
------------
$ 1,141,420
------------
FINANCIAL -- 7.0%
11,700 Deutsche Bank AG $ 553,602
22,400 Dresdner Bank AG 597,229
------------
$ 1,150,831
------------
FOOD -- 3.3%
990 Suedzucker Ord. $ 534,111
------------
MACHINERY & EQUIPMENT -- 3.2%
1,710 GEA Pref Shares $ 523,773
------------
METAL PRODUCT MANUFACTURERS -- 2.5%
1,080 Buderus $ 419,520
------------
RETAILERS -- 14.4%
1,580 Ava Allg Handels Der Verbrau $ 533,449
15,900 Douglas Holding AG 560,070
8,500 Hornbach AG 727,811
1,800 Kaufhof AG DM50 547,581
------------
$ 2,368,911
------------
UTILITIES -- 6.2%
1,400 Kraftueberwerke Rheinfelden $ 487,295
1,880 RWE AG 523,495
------------
$ 1,010,790
------------
MISCELLANEOUS -- 9.1%
2,800 Friedrich Grohe AG VZ $ 604,246
870 Gehe AG 442,116
10,400 Leifheit Ord. 456,109
------------
$ 1,502,471
------------
TOTAL INVESTMENTS
(identified cost, $17,511,208) -- 99.6% $16,358,866
OTHER ASSETS, LESS LIABILITIES -- 0.4% 60,094
------------
NET ASSETS -- 100.0% $16,418,960
===========
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT EQUIFUND -- HONG KONG
PORTFOLIO OF INVESTMENTS AS OF DECEMBER 31, 1995
- ------------------------------------------------
<TABLE>
Shares Description Value
- -----------------------------------------------------------------------------
<S> <C> <C>
AEROSPACE -- 4.0%
390,000 Hong Kong Aircraft Engineering Co. $ 1,008,729
------------
ELECTRICAL -- 7.1%
474,000 Johnson Electric Holdings-500 $ 845,936
601,000 Semi Tech (Global) Co. Ltd. 967,662
------------
$ 1,813,598
------------
FINANCIAL -- 13.7%
340,000 Bank of East Asia Hong Kong $ 1,220,175
117,000 Hang Seng Bank 1,047,818
81,000 HSBC Holdings PLC 1,225,606
------------
$ 3,493,599
------------
REAL ESTATE & OTHER FINANCIALS -- 15.8%
175,000 Cheung Kong $ 1,065,955
662,000 Hang Lung Development Co. Ltd. 1,053,036
68,200 Hang Lung Development Co. Ltd. Wts*. 10,231
175,000 Henderson Land Development 1,054,640
100,000 Sun Hung Kai Properties Ltd. 817,976
------------
$ 4,001,838
------------
RECREATION -- 3.4%
247,000 Television Broadcasts Ltd. $ 880,033
------------
RETAILERS -- 15.8%
1,100,000 Dairy Farm Int'l. Hlds. $ 1,012,000
180,000 Hutchison Whampoa 1,096,411
796,000 Jardine Int'l. Motor Holdings 905,891
1,033,000 Sime Darby Hong Kong Limited 995,260
------------
$ 4,009,562
------------
TRANSPORTATION -- 15.2%
116,400 China Motor Bus Company $ 1,008,574
579,600 Kowloon Motor Bus Co. (1933) Ltd. 944,450
1,260,000 Shun Tak Holdings Ltd. 888,070
131,000 Swire Pacific Ltd. "A" 1,016,489
------------
$ 3,857,583
------------
UTILITIES -- 15.3%
207,000 China Light & Power Co. $ 953,017
589,000 Hong Kong & China Gas 948,341
285,000 Hong Kong Electric Holdings Ltd. 934,336
590,000 Hong Kong Telecom 1,052,958
------------
$ 3,888,652
------------
MISCELLANEOUS -- 4.4%
1,000,000 First Pacific Co. $ 1,112,189
------------
TOTAL INVESTMENTS
(identified cost, $23,955,880) -- 94.7% $24,065,783
OTHER ASSETS, LESS LIABILITIES -- 5.3% 1,333,548
------------
NET ASSETS -- 100.0% $25,399,331
===========
* Non-income producing security.
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT EQUIFUND -- JAPAN
PORTFOLIO OF INVESTMENTS AS OF DECEMBER 31, 1995
- -------------------------------------------------
<TABLE>
Shares Description Value
- ------------------------------------------------------------------------------
<S> <C> <C>
BEVERAGES -- 6.2%
65,000 Chukyo Coca-Cola Bottling Co. $ 634,913
52,000 Mikuni Coca-Cola Bottling 709,091
------------
$ 1,344,004
------------
CONSTRUCTION -- 24.6%
21,000 Chudenko Corp. $ 718,955
60,000 Danto Corp. 742,747
56,000 Kaneshita Construction 752,805
56,000 Nishimatsu Construction Co. 655,319
36,000 Sumitomo Forestry 557,060
37,000 Taihei Dengyo 583,269
33,000 Takasago Thermal Engineering 590,425
41,500 Yurtec Corp. 726,451
------------
$ 5,327,031
------------
DIVERSIFIED -- 3.5%
79,000 Toho Real Estate Co. Ltd. $ 748,743
------------
DRUGS -- 19.2%
54,000 Daiichi Pharmaceutical $ 767,698
21,000 Ono Pharmaceutical 806,286
28,000 Sankyo Co. Ltd. 628,240
26,500 Santen Pharmaceutical 602,273
36,000 Taisho Pharmaceutical Co. Ltd. 710,251
30,000 Yamanouchi Pharmaceutical 644,101
------------
$ 4,158,849
------------
ELECTRICAL -- 3.1%
82,000 Nippon Signal Co. $ 670,116
-------------
ELECTRONICS -- 2.7%
5,000 Keyence Corp. $ 575,435
------------
MACHINERY & EQUIPMENT -- 9.3%
120,000 Kawasaki Heavy Industries $ 551,257
24,000 Kurita Water Industries 638,298
60,000 Sansei Yusoki 829,787
------------
$ 2,019,342
------------
OIL, GAS & COAL -- 4.8%
55,000 General Sekiyu K.K. $ 501,596
36,000 Tonen Corporation 525,725
------------
$ 1,027,321
------------
PRINTING & PUBLISHING -- 3.2%
56,000 Kyodo Printing Co. $ 698,646
------------
RETAILERS -- 15.4%
14,000 Familymart $ 630,948
13,000 Ito Yokado Co. 799,613
24,200 Nissen Co. 566,383
9,200 Seven Eleven Japan Ltd. 647,737
18,000 York-Benimaru Co. Ltd. 687,621
------------
$ 3,332,302
------------
MISCELLANEOUS -- 6.4%
82,000 Inabata & Co. $ 578,917
58,000 Wakita & Co. 813,346
------------
$ 1,392,263
------------
TOTAL INVESTMENTS
(identified cost, $21,134,213) -- 98.4% $21,294,052
OTHER ASSETS, LESS LIABILITIES -- 1.6% 336,931
------------
NET ASSETS -- 100.0% $21,630,983
===========
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT EQUIFUND -- MEXICO
PORTFOLIO OF INVESTMENTS AS OF DECEMBER 31, 1995
- --------------------------------------------------
<TABLE>
Shares Description Value
- -------------------------------------------------------------------------------
<S> <C> <C>
BEVERAGES -- 8.5%
645,000 Fomento Economico Mexicano $ 1,442,599
475,000 Grupo Continental SA-Ser CP 1,326,438
------------
$ 2,769,037
------------
CONSTRUCTION -- 9.8%
345,000 Apasco $ 1,409,438
322,320 Cementos de Mexico SA-CPO 1,054,259
224,000 Cemex SA 732,670
------------
$ 3,196,367
------------
DIVERSIFIED -- 13.9%
412,000 Desc Sociedad de Fomento Indl* $ 1,507,381
260,000 Grupo Carso SA* 1,401,681
125,000 Grupo Industrial Alfa SA-A 1,598,255
------------
$ 4,507,317
------------
FOOD -- 9.2%
340,000 Grupo Industrial Bimbo-Ser A $ 1,393,406
2,600,000 Grupo Industrial Maseca B 1,586,555
------------
$ 2,979,961
------------
PAPER -- 6.2%
395,000 Empaques Ponderosa SA* $ 707,783
88,000 Kimberly-Clark de Mexico-B 1,324,266
------------
$ 2,032,049
------------
REAL ESTATES & OTHER FINANCIALS -- 4.4%
860,000 Grupo Financieri Banamex $ 1,434,260
------------
RECREATION -- 3.6%
104,000 Grupo Televisa SA-Ser CPO $ 1,175,126
------------
RETAILERS -- 12.9%
1,478,000 Cifra SA de CV B* $ 1,543,922
2,460,000 Controladora Coml Mexicana B* 1,590,175
500,000 Sears (Mexico)* 1,045,249
------------
$ 4,179,346
------------
TOBACCO -- 3.8%
322,000 Empressa La Moderna Ser ACP* $ 1,232,217
------------
TRANSPORTATION -- 3.3%
140,000 Transport Maritima 'A' Shares* $ 1,067,873
------------
UTILITIES -- 4.6%
930,000 Telefonos de Mexico $ 1,486,076
------------
MISCELLANEOUS -- 4.1%
3,470,000 Grupo Posadas Sa De CV* $ 1,345,831
------------
TOTAL INVESTMENTS
(identified cost, $27,700,973) -- 84.3% $27,405,460
OTHER ASSETS, LESS LIABILITIES -- 15.7% 5,087,582
------------
NET ASSETS -- 100.0% $32,493,042
===========
* Non-income producing security.
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT EQUIFUND -- NETHERLANDS
PORTFOLIO OF INVESTMENTS AS OF DECEMBER 31, 1995
- -------------------------------------------------
<TABLE>
Shares Description Value
- ------------------------------------------------------------------------------
<S> <C> <C>
BEVERAGES -- 6.2%
5,450 Grolsch N.V. $ 189,111
1,460 Heineken N.V. 258,480
------------
$ 447,591
------------
CONSTRUCTION -- 11.1%
1,555 Hollandesche Beton Group N.V. $ 236,910
19,000 Koninklijke Boskalis 270,568
4,810 Volker Stevin 290,137
------------
$ 797,615
------------
DIVERSIFIED -- 3.7%
4,104 Atag Hlding N.V. $ 270,521
------------
ELECTRONICS -- 4.7%
7,250 Getronics N.V. $ 338,132
------------
FOOD -- 11.8%
6,530 CSM N.V. Cert. $ 284,248
3,300 Nutricia Verenidge Bedrijven 266,364
2,170 Unilever N.V. 304,294
------------
$ 854,906
------------
MACHINERY & EQUIPMENT -- 3.9%
4,600 Oce-Van Der Grinten $ 279,187
------------
METAL PRODUCT MANUFACTURERS -- 3.5%
7,400 Twentsche Kabel Holding N.V. $ 254,014
------------
PRINTING & PUBLISHING -- 16.5%
20,100 Elsevier $ 267,484
1,880 Telegraf (Holdingsmij) - CVA 264,212
2,180 Verenigde Nederlandse 298,647
3,850 Wolters Kluwer N.V. 363,429
------------
$ 1,193,772
------------
REAL ESTATE & OTHER FINANCIALS -- 4.5%
4,830 Amev N.V. $ 322,881
------------
RECREATION -- 3.7%
5,100 Polygram $ 270,207
------------
RETAILERS -- 14.6%
5,130 Deboer Winkelbedridjven $ 252,018
4,060 Konin Bijenkorf Beheer 267,620
6,503 Koninklijke Ahold N.V. 264,876
11,900 MacIntosh N.V. 264,921
------------
$ 1,049,435
------------
TEXTILES -- 3.1%
4,950 Gamma Holding N.V. $ 224,706
------------
MISCELLANEOUS -- 11.2%
4,937 Hagemeyer N.V. $ 257,273
9,000 IHC Caland N.V. 302,220
14,000 Otra N.V. Aandeel 248,119
------------
$ 807,612
------------
TOTAL INVESTMENTS
(identified cost, $6,582,888) -- 98.5% $ 7,110,579
OTHER ASSETS, LESS LIABILITIES -- 1.5% 106,958
------------
NET ASSETS -- 100.0% $ 7,217,537
===========
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT EQUIFUND -- NORDIC
PORTFOLIO OF INVESTMENTS AS OF DECEMBER 31, 1995
- -------------------------------------------------
<TABLE>
Shares Description Value
- ------------------------------------------------------------------------------
<S> <C> <C>
BEVERAGES -- 3.6%
2,290 Carlsberg AS - B $ 127,634
------------
CHEMICALS -- 17.2%
8,000 AGA AB B Free $ 110,262
560 Cheminova A/S- "B" 123,840
1,400 Christian Hansen Holding - B 135,922
2,900 Perstorp AB - B Shs 124,496
7,920 Unitor AS 108,672
------------
$ 603,192
------------
CONSTRUCTION -- 9.6%
470 Icopal $ 113,233
11,040 Skane-Gripen AB-Ser B Fr 104,767
1,350 Superfos AS 117,718
------------
$ 335,718
------------
DIVERSIFIED -- 3.0%
2,200 Orkla A/S-B-Aksjer $ 104,786
------------
DRUGS -- 22.0%
3,400 Astra AB B Free Shares $ 134,694
1,670 Coloplast B A/S 147,346
7,000 Gambro AB - "B" Free 132,856
890 Novo-Nordisk AS 121,611
3,700 Orion A/S-B 103,590
1,830 Radiometer A/S -"B" 130,949
------------
$ 771,046
------------
FINANCIAL -- 3.8%
6,440 Svenska Handelsbanken - "A" $ 133,869
------------
FOOD -- 2.8%
4,080 Huhtamaki "I" Free $ 98,312
------------
MACHINERY & EQUIPMENT -- 6.6%
7,780 Atlas Copco AB A Free $ 119,535
6,400 Sandvik AB B Fria 112,310
------------
$ 231,845
------------
REAL ESTATE & OTHER FINANCIALS -- 3.9%
9,100 Om Gruppa AB Free $ 137,074
------------
RETAILERS -- 3.5%
2,200 Hennes & Mauritz AB B-F $ 122,613
------------
TRANSPORTATION -- 3.6%
10,200 Helikopter Service AS $ 124,674
------------
UTILITIES -- 10.9%
7,660 Graningeverkens $ 141,921
8,040 Gullspangs Kraft - "B" Free 117,474
5,450 Sydkraft AB - A Free 120,678
------------
$ 380,073
------------
MISCELLANEOUS -- 8.2%
6,650 ISS Int'l. Service System-B $ 149,452
1,230 Sophus Berendsen 138,215
------------
$ 287,667
------------
TOTAL INVESTMENTS
(identified cost, $3,076,400) -- 98.7% $ 3,458,503
OTHER ASSETS, LESS LIABILITIES -- 1.3% 45,802
------------
NET ASSETS -- 100.0% $ 3,504,305
===========
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT EQUIFUND -- SWITZERLAND
PORTFOLIO OF INVESTMENTS AS OF DECEMBER 31, 1995
- -------------------------------------------------
<TABLE>
Shares Description Value
- ------------------------------------------------------------------------------
<S> <C> <C>
CHEMICALS -- 16.1%
360 Ciba Geigy AG-B $ 314,889
70 Ems-Chemie Holding AG 319,795
290 Sarna Kunsstof Hldg AG-Reg. 312,990
360 Siegfried AG-R 280,872
------------
$ 1,228,546
------------
CONSTRUCTION -- 3.3%
1,030 Sika Finanz AG-Bearer $ 250,011
------------
DRUGS -- 8.0%
320 Sandoz AG-Reg. $ 292,939
40 Roche Holding AG-Genuschein 316,415
------------
$ 609,354
------------
ELECTRICAL -- 4.6%
440 Hilti AG-PC $ 350,535
------------
FINANCIAL -- 11.5%
260 Baer Hldg. AG-(Br) $ 288,501
260 Schweiz Bankgesellschaft B 281,739
750 Schweizerischer Bankverein 306,229
------------
$ 876,469
------------
FOOD -- 8.6%
230 Lindt & Spruengli AG-PC $ 334,966
290 Nestle 320,532
------------
$ 655,498
------------
MACHINERY & EQUIPMENT -- 11.5%
480 Nokia-Maillefer S.A. $ 250,912
290 Schindler Holding AG-Regd 311,733
150 Schweiz Ind. Gesselschaft 313,380
------------
$ 876,025
------------
REAL ESTATE & OTHER FINANCIALS -- 4.0%
535 Intershop Holdings-Br $ 306,099
------------
RETAILERS -- 9.7%
1,000 Fust (Dipl. Ong AG) $ 251,398
390 Magazine Glob-R 240,042
1,130 Merkur Holding AG 248,815
------------
$ 740,255
------------
TEXTILES -- 3.9%
700 Forbo Holdings AG-R $ 299,163
------------
UTILITIES -- 4.0%
1,500 Elektricite de Laufenbourg $ 305,578
------------
MISCELLANEOUS -- 16.6%
1,130 Kardex B $ 355,100
1,760 Rentsch (W) Holding AG 286,836
2,400 S.M.H. Ag-Reg. 10SFR 314,161
900 SGS Soc. Gen. Surveillance-R 308,179
----------
$ 1,264,276
----------
TOTAL INVESTMENTS
(identified cost, $7,328,686) -- 101.8% $ 7,761,809
OTHER ASSETS, LESS LIABILITIES -- (1.8%) (133,554)
------------
NET ASSETS -- 100.0% $ 7,628,255
===========
</TABLE>
See notes to financial statements
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
- --------------------------------------------
<TABLE>
THE WRIGHT EQUIFUND EQUITY TRUST
--------------------------------------------
BELGIUM/
LUXEMBOURG BRITAIN GERMANY
SERIES SERIES SERIES
- -----------------------------------------------------------------------------------------------------------------------------
ASSETS:
<S> <C> <C> <C>
Investments --
Identified cost................................. $12,710,191 $12,521,140 $17,511,208
Unrealized appreciation (depreciation).......... 2,070,531 597,343 (1,152,342)
----------- ----------- -----------
Total value (Note 1A)......................... $14,780,722 $13,118,483 $16,358,866
Cash.............................................. 10,684 732,173 96,623
Receivable for Fund shares sold................... 31,718 28,621 45,290
Dividends receivable.............................. 5,294 94,790 --
Tax reclaim receivable............................ 47,198 4,126 35,097
Deferred organization expenses (Note 1E).......... 6,837 15,486 15,476
----------- ----------- -----------
Total Assets.................................. $14,882,453 $13,993,679 $16,551,352
----------- ----------- -----------
LIABILITIES:
Payable for Fund shares reacquired................ $ 57,402 $ 56,260 $ 122,725
Loans payable (Note 8)............................ 65,000 -- --
Trustees fees payable............................. 114 114 114
Custodian fee payable (Note 2).................... 3,011 -- 4,200
Accrued Interest.................................. 67 -- --
Accrued expenses.................................. 3,984 5,279 5,353
----------- ----------- -----------
Total Liabilities............................. $ 129,578 $ 61,653 $ 132,392
----------- ----------- -----------
NET ASSETS.......................................... $14,752,875 $13,932,026 $16,418,960
============ ============ ============
NET ASSETS CONSIST OF:
Paid in capital..................................... $12,645,616 $13,238,183 $17,777,513
Accumulated undistributed net realized gain (loss) on
investment and foreign currency transactions (computed
on the basis of identified cost)................... (24,774) 114,839 (235,322)
Unrealized appreciation (depreciation) of investments and
translation of assets and liabilities in foreign currencies
(computed on the basis of identified cost)......... 2,069,640 597,595 (1,153,063)
Undistributed net investment income (loss).......... 62,393 (18,591) 29,832
----------- ----------- -----------
Net assets applicable to outstanding shares....... $14,752,875 $13,932,026 $16,418,960
============ ============ ============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING........................................ 1,228,016 1,339,845 1,776,677
============ ============ ============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST (NOTE 9).................... $12.01 $10.40 $ 9.24
============ ============ ============
</TABLE>
See notes to financial statements
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
- -------------------------------------------
<TABLE>
THE WRIGHT EQUIFUND EQUITY TRUST
----------------------------------------------
HONG KONG JAPAN MEXICO
SERIES SERIES SERIES
- ------------------------------------------------------------------------------------------------------------------------
ASSETS:
<S> <C> <C> <C>
Investments --
Identified cost................................. $23,955,880 $21,134,213 $27,700,973
Unrealized appreciation (depreciation).......... 109,903 159,839 (295,513)
----------- ----------- -----------
Total value (Note 1A)......................... $24,065,783 $21,294,052 $27,405,460
Cash.............................................. 1,182,642 250,927 4,650,838
Receivable for investments sold................... -- -- 1,265,320
Receivable for Fund shares sold................... 304,523 178,098 339,732
Dividends receivable.............................. 54,250 34,297 --
Receivables for open forward foreign currency exchange
contracts (Notes 1H & 7)........................ -- -- 2,755
Deferred organization expenses (Note 1E).......... -- 5,797 12,345
----------- ----------- -----------
Total Assets.................................. $25,607,198 $21,763,171 $33,676,450
-
----------- ----------- -----------
LIABILITIES:
Payable for investments purchased................. $ -- $ -- $ 554,713
Payable for Fund shares reacquired................ 200,313 125,974 622,055
Payable to dividend disbursing agent.............. -- -- 1,876
Trustees fees payable............................. 114 114 114
Custodian fee payable (Note 2).................... 150 1,500 --
Accrued expenses.................................. 7,290 4,600 4,650
----------- ----------- -----------
Total Liabilities............................. $ 207,867 $ 132,188 $ 1,183,408
----------- ----------- -----------
NET ASSETS.......................................... $25,399,331 $21,630,983 $32,493,042
============ ============ ============
NET ASSETS CONSIST OF:
Paid in capital..................................... $30,379,524 $23,219,432 $42,386,102
Accumulated undistributed net realized loss on
investment and foreign currency transactions (computed
on the basis of identified cost)................... (5,879,695) (1,748,903) (9,578,811)
Unrealized appreciation (depreciation) of investments and
translation of assets and liabilities in foreign currencies
(computed on the basis of identified cost)......... 109,916 159,484 (297,359)
Undistributed net investment income (loss).......... 789,586 970 (16,890)
----------- ----------- -----------
Net assets applicable to outstanding shares....... $25,399,331 $21,630,983 $32,493,042
============ ============ ============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING........................................ 1,949,893 2,462,643 7,702,888
============ ============ ============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST (NOTE 9).................... $13.03 $ 8.78 $ 4.22
============ ============ ============
</TABLE>
See notes to financial statements
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
- ------------------------------------------
<TABLE>
THE WRIGHT EQUIFUND EQUITY TRUST
-------------------------------------------------
NETHERLANDS NORDIC SWITZERLAND
SERIES SERIES SERIES
- ---------------------------------------------------------------------------------------------------------------------------
ASSETS:
<S> <C> <C> <C>
Investments --
Identified cost................................. $ 6,582,888 $ 3,076,400 $ 7,328,686
Unrealized appreciation......................... 527,691 382,103 433,123
----------- ----------- -----------
Total value (Note 1A)......................... $ 7,110,579 $ 3,458,503 $ 7,761,809
Cash.............................................. 115,412 27,489 14,280
Receivable for Fund shares sold................... 23,294 15,486 27,493
Tax reclaim receivable............................ 8,429 2,021 38,695
Deferred organization expenses (Note 1E).......... -- 5,797 6,727
Receivable from Investment Adviser................ -- 13,004 --
Dividend Receivable............................... -- 980 --
----------- ----------- -----------
Total Assets.................................. $ 7,257,714 $ 3,523,280 $ 7,849,004
----------- ----------- -----------
LIABILITIES:
Payable for Fund shares reacquired................ $ 23,568 $ 12,356 $ 27,320
Investment Adviser fee payable (Note 2)........... 11,617 -- 3,949
Loans payable (Note 8)............................ -- -- 180,000
Trustees fees payable............................. 114 114 114
Custodian fee payable (Note 2).................... 2,100 3,405 4,000
Distribution fee payable (Note 3)................. -- -- 1,652
Payable to Dividend Disbursing Agent.............. -- -- 100
Accrued interest.................................. -- -- 170
Accrued expenses.................................. 2,778 3,100 3,444
----------- ----------- -----------
Total Liabilities............................. $ 40,177 $ 18,975 $ 220,749
----------- ----------- -----------
NET ASSETS.......................................... $ 7,217,537 $ 3,504,305 $ 7,628,255
============ ============ ============
NET ASSETS CONSIST OF:
Paid in capital..................................... $ 6,714,019 $ 3,382,161 $ 7,217,307
Accumulated undistributed (overdistributed) net realized
gain (loss) on investment and foreign currency transactions
(computed on the basis of identified cost)......... (18,425) (281,633) (32,131)
Unrealized appreciation of investments and
translation of assets and liabilities in foreign currencies
(computed on the basis of identified cost)......... 528,026 382,219 433,488
Undistributed net investment income (loss).......... (6,083) 21,558 9,591
----------- ----------- -----------
Net assets applicable to outstanding shares....... $ 7,217,537 $ 3,504,305 $ 7,628,255
============ ============ ============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING........................................ 839,843 309,300 687,291
============ ============ ============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST (NOTE 9).................... $ 8.59 $11.33 $11.10
============ ============ ============
</TABLE>
See notes to financial statements
<PAGE>
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
- ------------------------------------------
<TABLE>
THE WRIGHT EQUIFUND EQUITY TRUST
----------------------------------------------
BELGIUM/
LUXEMBOURG BRITAIN GERMANY
SERIES SERIES(1) SERIES(2)
- -------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
<S> <C> <C> <C>
Income --
Dividends...................................... $ 487,722 $ 528,656 $ 269,541
Less: Foreign taxes........................... (68,261) (77,996) (26,954)
----------- ----------- -----------
Total investment income........................ $ 419,461 $ 450,660 $ 242,587
----------- ----------- -----------
Expenses --
Investment Adviser fee (Note 2)................ $ 103,043 $ 83,324 $ 82,313
Administrator fee (Note 2)..................... 13,739 11,110 10,975
Audit fees..................................... 5,342 2,809 2,809
Compensation of Trustees not affiliated with
the Investment Adviser or Administrator...... 987 462 432
Custodian fee (Note 2)......................... 45,460 37,392 38,188
Transfer & dividend disbursing agent fees...... 6,671 3,836 4,392
Shareholder communication expense.............. 3,472 861 250
Distribution expenses (Note 3)................. 34,348 27,775 27,438
Legal services................................. 9,292 297 228
Registration costs............................. 11,042 1,486 1,525
Amortization of organization expense (Note 1E). 2,161 2,514 2,524
Printing....................................... 3,079 2,081 2,936
Interest expense............................... 1,110 -- --
Miscellaneous.................................. 2,121 1,869 1,638
----------- ----------- -----------
Total expenses................................. $ 241,867 $ 175,816 $ 175,648
Deduct --
Reduction of custodian fee (Note 2).......... 32,069 36,870 33,588
----------- ----------- -----------
Net expenses................................. $ 209,798 $ 138,946 $ 142,060
----------- ----------- -----------
Net investment income...................... $ 209,663 $ 311,714 $ 100,527
----------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on investment and foreign
currency transactions (identified cost basis)... $ 357,022 $ 812,736 $ (234,821)
Change in unrealized appreciation (depreciation) of
investments and translation of assets and liabilities in
foreign currencies.............................. 1,933,707 597,595 (1,153,063)
----------- ----------- -----------
Net realized and unrealized gain (loss)
on investments............................... $ 2,290,729 $ 1,410,331 $(1,387,884)
----------- ----------- -----------
Net increase (decrease) in net assets
from operations.............................. $ 2,500,392 $ 1,722,045 $(1,287,357)
============ ============ ============
<FN>
(1)From the start of business, April 20, 1995, to December 31, 1995.
(2)From the start of business, April 19,1995, to December 31, 1995.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
- ------------------------------------------
<TABLE>
THE WRIGHT EQUIFUND EQUITY TRUST
------------------------------------------
HONG KONG JAPAN MEXICO
SERIES SERIES SERIES
- -----------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
<S> <C> <C> <C>
Income --
Dividends...................................... $ 1,479,089 $ 154,248 $ 219,276
Less: Foreign taxes............................ -- (23,137) --
----------- ----------- -----------
Total investment income........................ $ 1,479,089 $ 131,111 $ 219,276
----------- ----------- -----------
Expenses --
Investment Adviser fee (Note 2)................ $ 241,428 $ 120,678 $ 167,535
Administrator fee (Note 2)..................... 32,190 16,090 22,338
Audit fees..................................... 14,542 12,042 5,209
Compensation of Trustees not affiliated with
the Investment Adviser or Administrator....... 760 882 918
Custodian fee (Note 2)......................... 80,807 67,334 73,145
Transfer & dividend disbursing agent fees...... 8,121 7,453 7,575
Shareholder communication expense.............. 13,259 3,903 2,034
Distribution expenses (Note 3)................. 80,476 40,226 55,845
Legal services................................. 419 359 9,706
Registration costs............................. 16,715 11,023 10,489
Amortization of organization expense (Note 1E). 3,795 1,856 3,404
Printing....................................... 1,554 3,067 3,097
Interest expense............................... 14,813 4,349 17,595
Miscellaneous.................................. 2,263 2,054 5,673
----------- ----------- -----------
Total expenses................................. $ 511,142 $ 291,316 $ 384,563
Deduct --
Reduction of custodian fee (Note 2).......... 80,807 51,686 73,145
----------- ----------- -----------
Net expenses................................. $ 430,335 $ 239,630 $ 311,418
----------- ----------- -----------
Net investment income (loss)............... $ 1,048,754 $ (108,519) $ (92,142)
----------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized loss on investment and foreign
currency transactions (identified cost basis)... $ (3,864,758) $ (1,732,840) $(9,414,919)
Change in unrealized appreciation of
investments and translation of assets and liabilities
in foreign currencies........................... 4,520,511 592,836 6,179,863
----------- ----------- -----------
Net realized and unrealized gain (loss)........ $ 655,753 $ (1,140,004) $(3,235,056)
----------- ----------- -----------
Net increase (decrease) in net assets from
operations.................................... $ 1,704,507 $ (1,248,523) $(3,327,198)
============ ============ ============
</TABLE>
See notes to financial statements
<PAGE>
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
- -------------------------------------------
<TABLE>
THE WRIGHT EQUIFUND EQUITY TRUST
------------------------------------------------
NETHERLANDS NORDIC SWITZERLAND
SERIES SERIES SERIES
- ----------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
<S> <C> <C> <C>
Income --
Dividends...................................... $ 144,040 $ 91,719 $ 218,637
Less: Foreign taxes........................... (21,530) (13,758) (29,129)
----------- ----------- -----------
Total investment income........................ $ 122,510 $ 77,961 $ 189,508
----------- ----------- -----------
Expenses --
Investment Adviser fee (Note 2)................ $ 49,082 $ 27,207 $ 52,298
Administrator fee (Note 2)..................... 6,544 3,628 6,973
Audit fees..................................... 11,542 12,042 11,542
Compensation of Trustees not affiliated with
the Investment Adviser or Administrator....... 748 778 1,519
Custodian fee (Note 2)......................... 41,455 35,917 44,486
Transfer & dividend disbursing agent fees...... 5,882 5,431 5,327
Shareholder communication expense.............. 1,105 1,493 1,409
Distribution expenses (Note 3)................. 16,361 9,069 17,432
Legal services................................. 347 349 346
Registration costs............................. 13,115 10,640 10,269
Amortization of organization expense (Note 1E). 3,795 1,856 2,159
Printing....................................... 1,583 2,986 2,974
Interest expense............................... 4,944 1,645 6,811
Miscellaneous.................................. 4,107 4,439 3,291
----------- ----------- -----------
Total expenses................................. $ 160,610 $ 117,480 $ 166,836
----------- ----------- -----------
Deduct --
Reduction of Investment Adviser fee (Note 2). $ 2,868 $ 17,776 $ --
Allocation of expenses to
Investment Adviser (Note 2)................. -- 13,004 --
Reduction of distribution expenses
by Principal Underwriter (Note 3)........... 9,853 5,925 9,347
Reduction of custodian fee (Note 2).......... 16,956 8,217 18,000
----------- ----------- -----------
Total deducted............................... $ 29,677 $ 44,922 $ 27,347
----------- ----------- -----------
Net expenses................................. $ 130,933 $ 72,558 $ 139,489
----------- ----------- -----------
Net investment income (loss)............... $ (8,423) $ 5,403 $ 50,019
----------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain on investment and foreign currency
transactions (identified cost basis)............ $ 728,331 $ 84,767 $ 233,699
Change in unrealized appreciation of investments
and transactions of assets and liabilities
in foreign currencies........................... 165,219 433,264 520,123
----------- ----------- -----------
Net realized and unrealized gain............. $ 893,550 $ 518,031 $ 753,822
----------- ----------- -----------
Net increase in net assets
from operations............................. $ 885,127 $ 523,434 $ 803,841
============ ============ ============
</TABLE>
See notes to financial statements
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
- ----------------------------------------------
<TABLE>
THE WRIGHT EQUIFUND EQUITY TRUST
--------------------------------------------------------------------------
BELGIUM/LUXEMBOURG SERIES BRITAIN SERIES GERMANY SERIES
Year Ended Dec. 31 Year Ended Dec. 31 Year Ended Dec. 31
------------------------- ----------------------- -------------------
1995 1994(1) 1995(2) 1995(3)
- -----------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From operations --
<S> <C> <C> <C> <C>
Net investment income.............. $ 209,663 $ 70,506 $ 311,714 $ 100,527
Net realized gain (loss)........... 357,022 (88,661) 812,736 (234,821)
Change in unrealized appreciation
(depreciation).................... 1,933,707 135,933 597,595 (1,153,063)
---------- ---------- ----------- -----------
Increase (decrease) in net assets
from operations.................. $2,500,392 $ 117,778 $ 1,722,045 $(1,287,357)
Distributions to shareholders from
net investment income.............. (60,821) (42,100) (189,522) (89,834)
Distributions to shareholders from
net realized gains................. (291,155) -- (701,234) --
Undistributed net investment
income (loss) included in price of shares
sold and redeemed (Note 1D)........ (11,411) 45,398 (37,601) 30,450
Net increase from Fund share
transactions (exclusive of amounts
allocated to net investment income)
(Note 4)........................... 1,179,035 11,315,759 13,138,338 17,765,701
---------- ---------- ----------- -----------
Net increase in net assets......... $3,316,040 $11,436,835 $13,932,026 $16,418,960
NET ASSETS:
At beginning of year................. 11,436,835 -- -- --
---------- ---------- ----------- -----------
At end of year....................... $14,752,875 $11,436,835 $13,932,026 $16,418,960
=========== =========== =========== ===========
UNDISTRIBUTED NET INVESTMENT
INCOME (LOSS) INCLUDED IN
NET ASSETS........................... $ 62,393 $ 73,804 $ (18,591) $ 29,832
=========== =========== =========== ===========
<FN>
(1) For the period from the start of business, February 15, 1994, to December
31, 1994. (2) For the period from the start of business, April 20, 1995, to
December 31, 1995. (3) For the period from the start of business, April 19,
1995, to December 31, 1995.
</FN>
See notes to financial statements
</TABLE>
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------
<TABLE>
THE WRIGHT EQUIFUND EQUITY TRUST
-----------------------------------------------------------------------
HONG KONG SERIES JAPANESE SERIES MEXICO SERIES
Year Ended Dec. 31 Year Ended Dec. 31 Year Ended Dec. 31
--------------------- ---------------------- -------------------
1995 1994 1995 1994(1) 1995 1994(2)
- -----------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From operations --
<S> <C> <C> <C> <C> <C> <C>
Net investment income (loss)....... $ 1,048,754 $ 926,621 $ (108,519) $ (44,671) $ (92,142) $ (83,369)
Net realized gain (loss)........... (3,864,758) (2,011,071) (1,732,840) 131,722 (9,414,919) 939,626
Change in unrealized appreciation
(depreciation).................... 4,520,511 (8,868,569) 592,836 (433,352) 6,179,863 (6,477,222)
----------- ----------- ----------- ----------- ----------- -----------
Increase (decrease) in net assets
from operations................ $ 1,704,507 $ (9,953,019) $(1,248,523) $ (346,301) $(3,327,198) $(5,620,965)
Distributions to shareholders from
net investment income.............. (384,817) (297,846) -- -- -- --
Distributions to shareholders
from net realized gains........... -- -- -- (101,597) (67,814) (871,953)
Distributions to shareholders in excess
of net realized gains.............. -- -- -- -- (99,000) --
Undistributed net investment
income included in price of shares
sold and redeemed (Note 1D)........ 71,707 427,406 -- 970 -- --
Net increase from Fund
share transactions (exclusive of
amounts allocated to net investment
income) (Note 4).................. 4,329,221 13,291,870 14,226,698 9,099,736 22,564,708 19,915,264
----------- ----------- ----------- ----------- ----------- -----------
Net increase in net assets......... $ 5,720,618 $ 3,468,411 $12,978,175 $ 8,652,808 $19,070,696 $13,422,346
NET ASSETS:
At beginning of year................. 19,678,713 16,210,302 8,652,808 -- 13,422,346 --
----------- ----------- ----------- ----------- ----------- -----------
At end of year....................... $25,399,331 $ 19,678,713 $21,630,983 $ 8,652,808 $32,493,042 $13,422,346
============ ============ ============ =========== ============ ===========
UNDISTRIBUTED NET INVESTMENT
INCOME (LOSS) INCLUDED IN
NET ASSETS............................ $ 789,586 $ 1,404,869 $ 970 $ 970 $ (16,890) $ (27)
============ ============ ============ =========== ============ ===========
<FN>
(1) For the period from the start of business, February 14, 1994, to December
31, 1994. (2) For the period from the start of business, August 2, 1994, to
December 31, 1994.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
- -----------------------------------------
<TABLE>
THE WRIGHT EQUIFUND EQUITY TRUST
------------------------------------------------------------------------
NETHERLANDS SERIES NORDIC SERIES SWITZERLAND SERIES
Year Ended Dec. 31 Year Ended Dec. 31 Year Ended Dec. 31
--------------------- ------------------- ------------------
1995 1994 1995 1994(1) 1995 1994(1)
- -----------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From operations --
<S> <C> <C> <C> <C> <C> <C>
Net investment income (loss)....... $ (8,423) $ 8,994 $ 5,403 $ (23,500) $ 50,019 $ 24,615
Net realized gain (loss)........... 728,331 1,073,586 84,767 (17,297) 233,699 (252,712)
Change in unrealized appreciation
(depreciation).................... 165,219 (276,745) 433,264 (51,045) 520,123 (86,635)
----------- ----------- ----------- ----------- ----------- -----------
Increase (decrease) in net assets
from operations................. $ 885,127 $ 805,835 $ 523,434 $ (91,842) $ 803,841 $ (314,732)
Distributions to shareholders from
net investment income............... -- (7,137) (15,844) -- (35,313) (20,218)
Distributions to shareholders
from net realized gains............ (742,515) (1,066,885) -- (315,015) -- --
Distributions to shareholders
from paid-in capital................ -- -- -- (3,414) -- --
Undistributed net investment income
(loss) included in price of shares
sold and redeemed (Note 1D)......... 1,261 (43,795) 8,785 12,795 (379) 5,573
Net increase (decrease) from Fund
share transactions (exclusive of
amounts allocated to net investment
income) (Note 4)................... 3,123,046 (4,490,841) (5,723,968) 9,109,374 3,047,571 4,141,912
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease)
in net assets................... $ 3,266,919 $ (4,802,823) $(5,207,593) $ 8,711,898 $ 3,815,720 $ 3,812,535
NET ASSETS:
At beginning of year................. 3,950,618 8,753,441 8,711,898 -- 3,812,535 --
----------- ----------- ----------- ----------- ----------- -----------
At end of year....................... $ 7,217,537 $ 3,950,618 $ 3,504,305 $ 8,711,898 $ 7,628,255 $ 3,812,535
============ =========== ============ =========== ============ ===========
UNDISTRIBUTED NET INVESTMENT
INCOME (LOSS) INCLUDED IN
NET ASSETS............................ $ (6,083) $ (5,487) $ 21,558 $ 12,796 $ 9,591 $ 9,970
============ =========== ============ =========== ============ ===========
<FN>
(1) For the period from the start of business, February 14, 1994, to December
31, 1994.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- ------------------------------
(1) SIGNIFICANT ACCOUNTING POLICIES
The Wright EquiFund Equity Trust (the Trust), formerly EquiFund -- Wright
National Fiduciary Equity Funds, is registered under the Investment Company Act
of 1940, as amended, as an open-end, management investment company. The Trust
presently consists of nine active diversified series (Funds), Wright EquiFund --
Belgium/Luxembourg (Belgium/Luxembourg series), formerly Wright EquiFund --
Belgian/Luxembourg National Fiduciary Equity Fund; Wright EquiFund -- Britain
(Britain series); Wright EquiFund -- Germany (Germany series), formerly Wright
EquiFund -- German National Fiduciary Equity Fund; Wright EquiFund -- Hong Kong
(Hong Kong series), formerly Wright EquiFund -- Hong Kong National Fiduciary
Equity Fund; Wright EquiFund -- Japan (Japan series), formerly Wright EquiFund
- -- Japanese National Fiduciary Equity Fund; Wright EquiFund -- Mexico (Mexico
series), formerly Wright EquiFund -- Mexican National Fiduciary Equity Fund;
Wright EquiFund -- Netherlands (Netherlands series), formerly Wright EquiFund --
Dutch National Fiduciary Equity Fund; Wright EquiFund -- Nordic (Nordic series),
formerly Wright EquiFund -- Nordic National Fiduciary Equity Fund; and Wright
EquiFund -- Switzerland (Switzerland series), formerly Wright EquiFund -- Swiss
National Fiduciary Equity Fund. The Trust also has ten inactive series. The
following is a summary of significant accounting policies consistently followed
by the Trust in the preparation of its financial statements. The policies are in
conformity with generally accepted accounting principles.
A. Investment Valuations -- Securities, including foreign 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. 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. Securities traded
over-the-counter, unlisted securities and listed securities for which closing
sale prices are not available are valued at the mean between latest bid and
asked prices or, if such bid and asked prices are not available, at prices
supplied by a pricing agent, unless such prices are deemed not to be
representative of market values at the close of business. Securities for which
market quotations are unavailable or deemed not to be representative of market
values at the close of business and other assets are appraised at their fair
value as determined in good faith according to guidelines established by the
Trustees of the Trust. Short-term obligations with remaining maturities of sixty
days or less are valued at amortized cost, which approximates market value.
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.
<PAGE>
C. 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
tax is necessary. At December 31, 1995, the Trust, for federal income tax
purposes, had a capital loss carryover of $27,166 for the Germany series,
$5,741,634 for the Hong Kong series, $6,623,729 for the Mexico series and
$264,069 for the Nordic series, 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:
Dec. Germany Hong Kong Mexico Nordic
- ----------------------------------------------------
2002 -- $1,163,853 -- --
2003 $27,166 $4,577,781 $6,623,729 $264,069
- ----------------------------------------------------
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.
D. Equalization -- The Trust follows the accounting practice known as
equalization by which a portion of the proceeds from sales and costs of
redemptions of Fund shares, on a per-share basis, equivalent to the amount of
undistributed net investment income on the date of the transaction is credited
or charged to undistributed net investment income. As a result, undistributed
net investment income per share is unaffected by sales or redemptions of Fund
shares.
E. Deferred Organization Expenses -- Costs incurred by the Trust in connection
with its organization, including registration costs, are being amortized on the
straight-line basis over five years from commencement of operations of each
series.
F. Other -- Investment transactions are accounted for on the date the
investments are purchased or sold. Dividend income and distributions to
shareholders are recorded on the ex-dividend date. 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. Interest income is recorded on the
accrual basis.
G. Distributions -- Differences in the recognition or classification of income
between the financial statements and tax earnings and profits which result in
only 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 period ending December 31, 1995, the following amounts were
reclassified due to differences between book and tax accounting created
primarily by the unavailability of a tax benefit for operating losses, deferral
of certain losses and character reclassifications between net investment income
and net realized capital gains.
<PAGE>
<TABLE>
Accumulated
Undistributed Undisributed
Net Realized Gain Net
(Loss) on Investmen Investment
Paid-in and Foreign Cur- Income
Capital rency Transactions (Loss)
- ---------------------------------------------------------------
<S> <C> <C> <C>
Belgium/Lux. 150,822 (1,980) (148,842)
Britain 99,845 3,337 (103,182)
Germany 11,812 (501) (11,311)
Hong Kong 1,339,270 11,657 (1,350,927)
Japan (107,002) (1,517) 108,519
Mexico (10,387) (64,892) 75,279
Netherlands 4,376 (10,942) 6,566
Nordic 1,776 (12,194) 10,418
Switzerland 27,824 (13,118) (14,706)
- ----------------------------------------------------------------
</TABLE>
These changes had no effect on the net assets per share.
H. Forward Foreign Currency Exchange Contracts -- The Trust 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 Trust will enter into
forward contracts for hedging purposes in connection with purchases and sales of
securities denominated in foreign currencies. The forward foreign currency
exchange contracts are adjusted by the daily forward exchange rate of the
underlying currency and any gains or losses are recorded for financial statement
purposes as unrealized until such time as the contracts have been closed or
offset.
I. Use of Estimates -- The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts of
revenue and expense during the reporting period. Actual results could differ
from those estimates.
(2) INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The Trust has engaged Wright Investors' Service (Wright) to perform
investment management, investment advisory, and other services. For its
services, Wright is compensated based upon a percentage of each series' average
daily net assets which rate is adjusted as average daily net assets exceed
certain levels. For the year ended December 31, 1995, the effective annual rate
was 0.75% for all Series. 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 each series' average daily
net assets, which rate is reduced as average daily net assets exceed certain
levels. For the year ended December 31, 1995, the effective annual rate was
0.10% for all series. To enhance the net income of the Netherlands Series,
Wright reduced its management fee by $2,868; for the Nordic Series, Wright
reduced its management fee by $17,776 and was allocated $13,004 of other
expenses.
The custodian fee was paid to Investors Bank & Trust Company (IBT) for its
services as custodian of the Trust. Prior to November 10, 1995, IBT was an
affiliate of Eaton Vance. Pursuant to the custodian agreement, IBT receives a
fee reduced by credits which are determined based on the average daily cash
balances the Trust maintains with IBT. All significant credits are reported as a
reduction of expenses in the Statement of Operations.
Certain of the Trustees and officers of the Trust are directors/trustees
and/or officers of the above organizations. Except as to Trustees of the Trust
who are not affiliated with Eaton Vance or Wright, Trustees and officers receive
remuneration for their services to the Trust out of the fees paid to Eaton Vance
and Wright.
<PAGE>
(3) DISTRIBUTION EXPENSES
The Trustees have adopted a Distribution Plan (the Plan) pursuant to Rule
12b-1 of the Investment Company Act of 1940. The Plan provides that each of the
Funds will pay Wright Investors' Service Distributors Inc. (Principal
Underwriter), a subsidiary of Wright, an annual rate of 0.25% of each series'
average daily net assets for activities primarily intended to result in the sale
of each series' shares. For the year ended December 31, 1995, The Principal
Underwriter reduced its fees to the Netherlands, Nordic, and Switzerland Series
by $9,853, $5,925, and $9,347, respectively.
(4) SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number
of full and fractional shares of beneficial interest (without par value).
Transactions in Trust shares for the periods ended were as follows:
<TABLE>
Year Ended Year Ended
December 31, 1995 December 31, 1994
------------------------- ----------------------
Shares Amount Shares Amount
- -------------------------------------------------------------------------------------------------------------
BELGIUM/LUXEMBOURG SERIES(1)
<S> <C> <C> <C> <C>
Sales 928,016 $ 10,410,352 1,364,481 $ 13,860,124
Issued to shareholders in payment
of distributions declared 29,949 345,335 4,191 41,912
Redemptions (847,368) (9,576,652) (251,253) (2,586,277)
--------- ------------ --------- ------------
Net Increase 110,597 $ 1,179,035 1,117,419 $ 11,315,759
========== ============= ========== =============
BRITAIN SERIES(2)
Sales 1,951,985 $ 19,839,372
Issued to shareholders in payment
of distributions declared 87,576 883,342
Redemptions (699,716) (7,584,376)
--------- ------------
Net Increase 1,339,845 $ 13,138,338
========== =============
GERMANY SERIES(3)
Sales 2,186,344 $ 21,785,141
Issued to shareholders in payment
of distributions declared 9,849 88,544
Redemptions (419,516) (4,107,984)
--------- ------------
Net Increase 1,776,677 $ 17,765,701
========== =============
HONG KONG SERIES
Sales 11,282,631 $136,417,382 6,415,882 $100,980,326
Issued to shareholders in payment
of distributions declared 28,862 339,619 20,895 255,440
Redemptions (10,873,290) (132,427,780) (5,697,304) (87,943,896)
--------- ------------ --------- ------------
Net Increase 438,203 $ 4,329,221 739,473 $ 13,291,870
========== ============= ========== =============
<FN>
(1) Year ended December 31,1994. Information is for the period from the start of
business, February 15, 1994, to December 31, 1994.
(2) For the period from the start of business, April 20, 1995, to December 31, 1995.
(3) For the period from the start of business, April 19, 1995, to December 31,
1995.
</FN>
</TABLE>
<PAGE>
<TABLE>
Year Ended Year Ended
December 31, 1995 December 31, 1994
------------------------- ----------------------
Shares Amount Shares Amount
- -------------------------------------------------------------------------------------------------------------
JAPAN SERIES(1)
<S> <C> <C> <C> <C>
Sales 5,210,094 $ 46,542,960 1,759,740 $ 18,115,761
Issued to shareholders in payment
of distributions declared 121 1,140 10,651 100,226
Redemptions (3,643,659) (32,317,402) (874,304) (9,116,251)
--------- ------------ --------- ------------
Net Increase 1,566,556 $ 14,226,698 896,087 $ 9,099,736
========== ============= ========== =============
MEXICO SERIES(2)
Sales 19,209,779 $ 84,533,525 3,304,755 $ 32,988,324
Issued to shareholders in payment
of distributions declared 40,963 129,034 113,074 862,752
Redemptions (13,619,950) (62,097,851) (1,345,733) (13,935,812)
--------- ------------ --------- ------------
Net Increase 5,630,792 $ 22,564,708 2,072,096 $ 19,915,264
========== ============= ========== =============
NETHERLANDS SERIES
Sales 1,330,209 $ 12,016,616 671,410 $ 7,157,730
Issued to shareholders in payment
of distributions declared 86,191 731,225 132,992 1,049,308
Redemptions (1,064,497) (9,624,795) (1,189,657) (12,697,879)
--------- ------------ --------- ------------
Net Increase (Decrease) 351,903 $ 3,123,046 (385,255) $ (4,490,841)
========== ============= ========== =============
NORDIC SERIES(3)
Sales 474,832 $ 4,958,738 1,290,707 $ 12,817,114
Issued to shareholders in payment
of distributions declared 1,372 15,001 34,769 316,749
Redemptions (1,083,870) (10,697,707) (408,510) (4,024,489)
--------- ------------ --------- ------------
Net Increase (Decrease) (607,666) $ (5,723,968) 916,966 $ 9,109,374
========== ============= ========== =============
SWITZERLAND SERIES(3)
Sales 1,486,951 $ 15,834,863 940,681 $ 9,373,201
Issued to shareholders in payment
of distributions declared 3,123 33,417 2,164 19,866
Redemptions (1,206,939) (12,820,709) (538,689) (5,251,155)
--------- ------------ --------- ------------
Net Increase 283,135 $ 3,047,571 404,156 $ 4,141,912
========== ============= ========== =============
<FN>
(1) Year ended December 31,1994. Information is for the period from the start of
business, February 14, 1994, to December 31, 1994.
(2) Year ended December 31,1994. Information is for the period from the start of business, August 2,
1994, to December 31, 1994.
(3) Year ended December 31,1994. Information is for
the period from the start of business, February 14, 1994, to December 31, 1994.
</FN>
</TABLE>
<PAGE>
(5) INVESTMENT TRANSACTIONS
Purchases and sales of investments, other than U.S. Government securities
and short-term obligations, for the year ended December 31, 1995, were as
follows:
<TABLE>
Purchases Sales Purchases Sales
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Belgium/Luxembourg $ 7,072,614 $ 4,985,571 Mexico $41,550,152 $22,308,984
Britain 17,781,675 6,076,609 Netherlands 7,694,204 5,275,662
Germany 20,394,981 2,648,451 Nordic 3,413,052 8,960,428
Hong Kong 33,795,994 29,614,747 Switzerland 9,584,976 6,284,969
Japan 31,260,543 16,732,635
</TABLE>
(6) FEDERAL INCOME TAX BASIS
OF INVESTMENT SECURITIES
The cost and gross and net unrealized appreciation/depreciation of the
investment securities owned at December 31, 1995, as computed on a federal
income tax basis, are as follows:
<TABLE>
Gross Gross Net Unrealized
Aggregate Unrealized Unrealized Appreciation
SERIES Cost Appreciation -- Depreciation = ( Depreciation )
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
BELGIUM/LUXEMBOURG $ 12,710,191 $ 2,382,474 -- $ 311,943 = $ 2,070,531
============== ==============
BRITAIN $ 12,521,140 $ 1,162,296 -- $ 564,953 = $ 597,343
============== ==============
GERMANY $ 17,511,208 $ 621,772 -- $ 1,774,114 = $(1,152,342)
============== ==============
HONG KONG $ 23,955,880 $ 1,395,431 -- $ 1,285,528 = $ 109,903
============== ==============
JAPAN $ 21,134,213 $ 907,203 -- $ 747,364 = $ 159,839
============== ==============
MEXICO $ 27,700,973 $ 1,644,936 -- $ 1,940,449 = $ (295,513)
============== ==============
NETHERLANDS $ 6,582,888 $ 766,221 -- $ 238,530 = $ 527,691
============== ==============
NORDIC $ 3,076,400 $ 524,862 -- $ 142,759 = $ 382,103
============== ==============
SWITZERLAND $ 7,328,686 $ 675,822 -- $ 242,699 = $ 433,123
============== ==============
</TABLE>
<PAGE>
(7) FINANCIAL INSTRUMENTS
The Funds regularly trade financial instruments with off-balance sheet risk
in the normal course of their investing activities in order to manage exposure
to market risks such as interest rates and foreign currency exchange rates.
These financial instruments include forward foreign currency exchange contracts.
The notional or contractual amounts of these instruments represent the
investment the Funds have in particular classes of financial instruments and
does not necessarily represent the amounts potentially subject to risk. The
measurement of the risks associated with these instruments is meaningful only
when all related and offsetting transactions are considered.
As of December 31, 1995, the Mexico Series had the following forward
foreign currency exchange contracts open:
<TABLE>
SALES
- -------
Settlement Contracts In Exchange For Contracts Net Unrealized
Date to Deliver (in U. S. Dollars) at Value Appreciation
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
01/02/96 Mexican Pesos 9,787,251 $1,265,320 $1,269,423 $ 4,103
========== ========= ======
PURCHASES
- ----------
Settlement Contracts In Exchange For Contracts Net Unrealized
Date to Receive (in U. S. Dollars) at Value Depreciation
- ------------------------------------------------------------------------------------------------------------------
01/02/96 Mexican Pesos 3,216,079 $ 415,783 $ 417,131 $(1,348)
========== ========= ======
</TABLE>
At December 31,1995, the Mexico Series had sufficient cash and/or securities to
cover any commitments under these contracts.
(8) LINE OF CREDIT
The Trust participates with other funds managed by Wright in a line of
credit with a bank which allows the Funds to borrow up to $20,000,000
collectively. The line of credit consists of a $10,000,000 committed facility
and a $10,000,000 uncommitted facility. Interest is charged to each Fund based
on its borrowings, at a rate equal to the bank's base rate. In addition, the
Funds pay a prorated commitment fee computed at a rate of 1/4 of 1% of
$10,000,000 less the value of any borrowing. The Belgium/Luxembourg and
Switzerland Series had loans outstanding of $65,000 and $180,000, respectively,
at December 31, 1995.
(9) CONTINGENT DEFERRED
SALES CHARGE (CDSC)
Effective January 1, 1996, shares that are redeemed in the first 30 days
after purchase will be subject to a contingent deferred sales charge at the rate
of one-and-one-half percent of redemption proceeds exclusive of all
reinvestments and capital appreciation in the account. No contingent deferred
sales charge is imposed on exchanges for shares of other funds in the Wright
EquiFund Equity Trust which are distributed with a contingent deferred sales
charge.
<PAGE>
(10) RISKS ASOCIATED WITH
FOREIGN INVESTMENTS
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 the Trust, 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 the Trust's assets. The Trust may be unable to sell securities
where the registration process is incomplete and may experience delays in
receipt of dividends.
INDEPENDENT AUDITORS' REPORT
To the Trustees and Shareholders of
The Wright EquiFund Equity Trust:
We have audited the accompanying statements of assets and
liabilities, including the portfolios of investments, of The
Wright EquiFund Equity Trust (the Trust) (comprising,
respectively, of Belgium/Luxembourg, Britain, Germany, Hong Kong,
Japan, Mexico, Netherlands, Nordic, and Switzerland Series) as of
December 31, 1995 and the related statements of operations for the
year then ended, and the statements of changes in net assets for
the years ended December 31, 1995 and 1994 and the financial
highlights (see pages 9 to 17 of the Prospectus) for each of the
years in the six-year period ended December 31, 1995. 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, 1995, 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 respective Series constituting The Wright
EquiFund Equity Trust as of December 31, 1995, 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 2, 1996
<PAGE>
APPENDIX A
----------------------------
MAJOR ECONOMIC AND FINANCIAL INDICATORS
OF THE NATIONS IN WHICH THE FUNDS MAY INVEST
The following information supplements and should be used in
connection with the section of the Funds' Prospectus entitled
"Appendix -- Information Concerning The Nations In Which The
Funds May Invest."
<PAGE>
<TABLE>
MAJOR ECONOMIC AND FINANCIAL INDICATORS*
- ----------------------------------------------------------------------------------------------------------------------------
Avg. Annual Rates ending 1994
---------------------------------------------------------------------------------
1994 1993 1992 1991 1990 2 Years 3 Years 5 Years
- ----------------------------------------------------------------------------------------------------------------------------
AUSTRALIA
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Gross Domestic Product:
Nominal 6.5% 5.0% 3.9% 0.6% 5.6% 5.8% 5.1% 4.3%
Real 5.0% 3.8% 2.5% -1.7% 1.1% 4.4% 3.8% 2.1%
Inflation (CPI) 1.9% 1.8% 1.0% 3.2% 7.3% 1.9% 1.6% 3.0%
Trade Balance (A$ mil) -3199 -127 1555 3514 368 -1663 -590 422
Current Account Balance (A$ mil) -15224 -10707 -11776 -11658 -16585 -12966 -12569 -13190
Interest Rates:
Short Term (T-Bills) 5.7% 5.0% 6.3% 10.0% 14.2% 5.3% 5.7% 8.2%
Long Term (Govt 20 yrs) 9.0% 7.3% 9.2% 10.7% 13.2% 8.2% 8.5% 9.9%
Exchange Rates US$/A$ 0.7768 0.6771 0.6886 0.7598 0.7733 0.7270 0.7142 0.7351
- -----------------------------------------------------------------------------------------------------------------------------
Gross Domestic Product:
Nominal 6.0% 3.5% 6.1% 7.1% 7.7% 4.7% 5.2% 6.1%
Real 2.7% -0.1% 1.8% 2.9% 4.2% 1.3% 1.5% 2.3%
Inflation (CPI) 3.0% 3.6% 4.1% 3.3% 3.3% 3.3% 3.6% 3.5%
Trade Balance (Schilling mil) -8869 -7281 -8443 -8560 -6969 -8075 -8198 -8024
Current Account Balance (Schilling mil) -2452 -762 -631 61 1166 -1607 -1282 -524
Interest Rates:
Short Term (Deposit rate) 2.3% 3.0% 3.7% 3.8% 3.4% 2.6% 3.0% 3.2%
Long Term (Govt Bonds) 6.7% 6.6% 8.3% 8.6% 8.7% 6.7% 7.2% 7.8%
Exchange Rates US$/Schilling 0.0901 0.0824 0.0881 0.0936 0.0937 0.0862 0.0869 0.0896
- -----------------------------------------------------------------------------------------------------------------------------
BELGIUM
Gross National Product:
Nominal 4.9% 2.4% 5.4% 5.0% 6.4% 3.7% 4.2% 4.8%
Real 2.2% -1.6% 1.8% 2.2% 3.2% 0.3% 0.8% 1.6%
Inflation (CPI) 2.4% 2.7% 2.4% 3.2% 3.4% 2.6% 2.5% 2.8%
Trade Balance (B.Franc mil) 6743 5780 3700 1999 1671 6262 5408 3979
Current Account Balance (B.Franc mil) 12751 11237 6650 4746 3627 11994 10213 7802
Interest Rates:
Short Term (T-Bills) 5.7% 8.2% 9.4% 9.4% 8.3% 7.0% 7.8% 8.2%
Long Term (Govt Bonds) 7.8% 7.2% 8.6% 9.3% 10.1% 7.5% 7.9% 8.6%
Exchange Rates US$/Franc 0.0314 0.0277 0.0301 0.0320 0.0323 0.0296 0.0297 0.0307
- -----------------------------------------------------------------------------------------------------------------------------
CANADA
Gross Domestic Product:
Nominal 5.2% 3.3% 2.0% 1.0% 2.9% 4.3% 3.5% 2.9%
Real 4.6% 2.2% 0.8% -1.8% -0.2% 3.4% 2.5% 1.1%
Inflation (CPI) 0.2% 1.9% 1.5% 5.6% 4.7% 1.0% 1.2% 2.8%
Trade Balance (C$ mil) 12202 7927 5699 3871 8334 10065 8609 7607
Current Account Balance (C$ mil) -17338 -23391 -22592 -24571 -22577 -20365 -21107 -22094
Interest Rates:
Short Term (T-Bills) 5.5% 4.8% 6.6% 8.7% 12.8% 5.2% 5.7% 7.7%
Long Term (Govt Bonds) 8.6% 7.9% 8.8% 9.8% 10.9% 8.2% 8.4% 9.2%
Exchange Rates US$/C$ 0.7129 0.7553 0.7867 0.8654 0.8618 0.7341 0.7516 0.7964
- -----------------------------------------------------------------------------------------------------------------------------
<PAGE>
DENMARK
Gross Domestic Product:
Nominal 6.4% 2.6% 2.8% 3.6% 4.2% 4.5% 3.9% 3.9%
Real 4.4% 1.5% 0.8% 1.3% 1.4% 2.9% 2.2% 1.9%
Inflation (CPI) 2.0% 1.3% 2.1% 2.4% 2.7% 1.7% 1.8% 2.1%
Trade Balance (Kroner mil) 7739 7998 7204 4748 4875 7869 7647 6513
Current Account Balance (Kroner mil) 2659 4711 4268 1983 1372 3685 3879 2999
Interest Rates:
Short Term (Money Market rate) 6.3% 11.5% 11.4% 9.8% 11.0% 8.9% 9.7% 10.0%
Long Term (Govt Bonds) 7.4% 7.1% 9.5% 9.6% 10.7% 7.2% 8.0% 8.9%
Exchange Rates US$/Kroner 0.1644 0.1476 0.1598 0.1691 0.1731 0.1560 0.1573 0.1628
- -----------------------------------------------------------------------------------------------------------------------------
FINLAND
Gross Domestic Product:
Nominal 5.3% 1.2% -0.9% -6.7% 5.8% 3.2% 1.8% 0.8%
Real 4.0% -1.2% -3.6% -7.1% 0.0% 1.4% -0.3% -1.6%
Inflation (CPI) 1.1% 2.2% 2.6% 4.1% 6.2% 1.6% 1.9% 3.2%
Trade Balance (Markka mil) 7651 6384 3944 2309 718 7018 5993 4201
Current Account Balance (Markka mil) 1068 -959 -4922 -6741 -6939 55 -1604 -3699
Interest Rates:
Short Term (Deposit rate) 3.3% 4.8% 7.5% 7.5% 7.5% 4.0% 5.2% 6.1%
Exchange Rates US$/Markka 0.2108 0.1729 0.1907 0.2420 0.2752 0.1919 0.1915 0.2183
- -----------------------------------------------------------------------------------------------------------------------------
FRANCE
Gross Domestic Product:
Nominal 11.3% 1.0% 3.5% 4.1% 5.7% 6.0% 5.2% 5.1%
Real 2.8% -1.5% 1.3% 0.8% 2.5% 0.7% 0.9% 1.2%
Inflation (CPI) 1.7% 2.1% 2.4% 3.2% 3.4% 1.9% 2.1% 2.6%
Trade Balance (F.Franc mil) 7868 7448 2344 -9594 -13320 7658 5887 -1051
Current Account Balance (F.Franc mil) 8128 9058 3934 -6469 -9942 8593 7040 942
Interest Rates:
Short Term (Deposit rate) 5.7% 8.8% 10.4% 9.5% 9.9% 7.2% 8.3% 8.8%
Long Term (Govt Bonds) 7.4% 6.9% 8.6% 9.1% 10.0% 7.1% 7.6% 8.4%
Exchange Rates US$/Franc 0.1871 0.1696 0.1816 0.1931 0.1950 0.1783 0.1794 0.1853
- -----------------------------------------------------------------------------------------------------------------------------
GERMANY
Gross National Product:
Nominal 4.3% 1.4% 6.2% 9.0% 9.3% 2.9% 4.0% 6.0%
Real 2.3% -1.7% 1.8% 4.9% 5.9% 0.3% 0.8% 2.6%
Inflation (CPI) 3.0% 4.1% 4.0% 3.5% 2.7% 3.6% 3.7% 3.4%
Trade Balance (DM bil) 50 40 27 19 69 45 39 41
Current Account Balance (DM bil) -22 -16 -22 -19 48 -19 -20 -6
Interest Rates:
Short Term (T-Bills) 5.1% 6.2% 8.3% 8.3% 8.1% 5.6% 6.5% 7.2%
Long Term (Govt Bonds) 6.7% 6.3% 8.0% 8.6% 8.9% 6.5% 7.0% 7.7%
Exchange Rates US$/DM 0.6457 0.5793 0.6196 0.6596 0.6693 0.6125 0.6148 0.6347
- -----------------------------------------------------------------------------------------------------------------------------
<PAGE>
HONG KONG
Gross Domestic Product:
Nominal 15.2% 14.0% 16.5% 14.8% 11.2% 14.6% 15.2% 14.3%
Real NA NA NA 4.2% 3.2% NA NA NA
Inflation (CPI) 9.0% 6.5% -6.1% 30.7% -1.5% 7.7% 2.9% 7.0%
Trade Balance ($HK mil) -9463 -1702 -4290 -2188 -2389 -5582 -5152 -4006
Current Account Balance ($HK mil) +NA NA NA 19128 27376 NA NA NA
Interest Rates:
Short Term (3 mo. Interbank) NA NA NA 3.7% 8.5% NA NA NA
Exchange Rates US$/HK$ 0.1292 0.1295 0.1291 0.1285 0.1282 12.94% 12.93% 12.89%
- -----------------------------------------------------------------------------------------------------------------------------
IRELAND
Gross Domestic Product:
Nominal 8.0% 7.3% 6.0% 4.0% 7.0% 7.7% 7.1% 6.4%
Real 6.7% 3.1% 4.0% 2.2% 7.8% 4.9% 4.6% 4.7%
Inflation (CPI) 2.3% 1.4% 3.1% 3.2% 3.3% 1.9% 2.3% 2.7%
Trade Balance ((pound)mil) 9546 8099 7042 4167 3969 8823 8229 6565
Current Account Balance ((pound)mil) 3200 2332 1708 861 -262 2766 2413 1568
Interest Rates:
Short Term (T-Bills) 5.9% 8.6% 9.5% 10.1% 10.9% 7.2% 8.0% 33.2%
Long Term (Govt Bonds) 8.2% 7.7% 9.1% 9.2% 10.1% 8.0% 8.3% 32.7%
Exchange Rates US$/(pound) 0.6464 0.7088 0.6137 0.5715 0.5632 0.6776 0.6563 0.3497
- -----------------------------------------------------------------------------------------------------------------------------
JAPAN
Gross National Product:
Nominal 0.7% 0.6% 2.6% 6.3% 7.2% 0.7% 1.3% 3.4%
Real -1.2% 0.1% 1.4% 4.3% 4.8% -0.5% 0.1% 1.8%
Inflation (CPI) 0.7% 1.2% 1.7% 3.3% 3.1% 0.9% 1.2% 2.0%
Trade Balance (Yen bil) 146 142 132 103 64 144 140 117
Current Account Balance (Yen bil) 129 132 118 73 36 130 126 97
Interest Rates:
Short Term (Deposit rate) 1.7% 2.1% 3.4% 4.1% 3.6% 1.9% 2.4% 3.0%
Long Term (Govt Bonds) 3.7% 3.7% 4.9% 6.5% 7.4% 3.7% 4.1% 5.2%
Exchange Rates US$/Japanese(Y) 0.0100 0.0089 0.0080 0.0080 0.0074 0.0095 0.0090 0.0085
- -----------------------------------------------------------------------------------------------------------------------------
MALAYSIA
Gross Domestic Product:
Nominal 13.7% 10.3% 14.1% 11.9% 12.9% 12.0% 12.7% 12.6%
Real 8.7% 8.3% 7.8% 8.7% 9.7% 8.5% 8.3% 8.7%
Inflation (CPI) 3.7% 3.6% 4.7% 4.4% 2.7% 3.6% 4.0% 3.8%
Trade Balance (Ringgit mil) 1581 3026 3150 391 2525 2304 2586 2135
Current Account Balance (Ringgit mil) -4147 -2809 -2167 -4183 -870 -3478 -3041 -2835
Interest Rates:
Short Term (Deposit rate) 5.1% 6.5% 8.0% 7.8% 6.8% 5.8% 6.5% 6.9%
Exchange Rates US$/Ringgit 0.3906 0.3702 0.3828 0.3671 0.3702 0.3804 0.3812 0.3762
- ----------------------------------------------------------------------------------------------------------------------------
<PAGE>
MEXICO
Gross Domestic Product:
Nominal NA 10.6% 17.8% 26.0% 35.2% 14.2% 18.0% 23.6%
Real NA 0.6% 2.8% 3.6% 4.4% 1.7% 2.3% 3.0%
Inflation (CPI) 6.9% 9.7% 15.5% 22.7% 26.6% 8.3% 10.7% 16.1%
Trade Balance (Pesos bil) -18465 -13481 -15934 -7279 -881 -15973 -15960 -11208
Current Account Balance (Pesos bil) -28784 -23400 -24442 -14888 -7451 -26092 -25542 -19793
Interest Rates:
Short Term (T-Bills) 14.1% 15.0% 15.6% 19.3% 34.8% 14.6% 14.9% 19.8%
Exchange Rates US$/Peso 0.1878 0.3220 0.3210 0.3256 0.3395 0.2549 0.2769 0.2992
- -----------------------------------------------------------------------------------------------------------------------------
NETHERLANDS
Gross National Product:
Nominal 5.1% 2.3% 4.4% 5.0% 6.5% 3.7% 3.9% 4.7%
Real 2.6% 0.4% 1.8% 2.3% 3.9% 1.5% 1.6% 2.2%
Inflation (CPI) 2.7% 2.6% 3.2% 3.1% 2.5% 2.7% 2.9% 2.8%
Trade Balance (Guilders mil) 14482 14311 13067 12559 12576 14397 13953 13399
Current Account Balance (Guilders mil) 11547 10367 7331 7724 9208 10957 9748 9235
Interest Rates:
Short Term (Deposit Rate) 3.0% 3.1% 3.2% 3.2% 3.3% 3.0% 3.1% 3.2%
Long Term (Govt Bonds) 7.2% 6.5% 8.1% 8.7% 8.9% 6.9% 7.3% 7.9%
Exchange Rates US$/Guilders 0.5763 0.5152 0.5512 0.5847 0.5917 0.5458 0.5476 0.5638
- -----------------------------------------------------------------------------------------------------------------------------
NEW ZEALAND
Gross Domestic Product:
Nominal 7.9% 6.4% 3.0% 0.1% 2.2% 7.1% 5.7% 3.9%
Real 3.1% 6.0% 0.9% -2.3% -0.8% 4.6% 3.3% 1.4%
Inflation (CPI) 1.7% 1.4% 1.0% 2.6% 6.0% 1.5% 1.3% 2.5%
Trade Balance (NZ$ mil) 1336 1726 1487 2078 815 1531 1516 1488
Current Account Balance (NZ$ mil) -2006 -1323 -1581 -1511 -3137 -1665 -1637 -1912
Interest Rates:
Short Term (T-Bills) 6.7% 6.2% 6.7% 9.7% 13.8% 6.5% 6.5% 8.6%
Long Term (Govt Bonds) 7.5% 6.7% 7.9% 10.0% 12.5% 7.1% 7.3% 8.9%
Exchange Rates US$/NZ$ 0.6425 0.5588 0.5143 0.5411 0.5878 0.6007 0.5719 0.5689
- -----------------------------------------------------------------------------------------------------------------------------
NORWAY
Gross Domestic Product:
Nominal 5.4% 4.5% 2.4% 4.0% 6.3% 4.9% 4.1% 4.5%
Real 5.1% 2.4% 3.4% 1.6% 1.7% 3.8% 3.6% 2.8%
Inflation (CPI) 1.5% 2.3% 2.3% 3.4% 4.2% 1.9% 2.0% 2.7%
Trade Balance (Kroner mil) 8321 7995 9303 8696 7761 8158 8540 8415
Current Account Balance (Kroner mil) 3645 2152 2982 5032 3992 2899 2926 3561
Interest Rates:
Short Term (Deposit rate) 5.2% 5.5% 10.7% 9.6% 9.7% 5.4% 7.1% 8.1%
Long Term (Govt Bond) 7.1% 6.5% 9.8% 9.9% 10.7% 6.8% 7.8% 8.8%
Exchange Rates US$/Kroner 0.1479 0.1330 0.1444 0.1674 0.1693 0.1404 0.1418 0.1524
- ---------------------------------------------------------------------------------------------------------------------------
<PAGE>
SINGAPORE
Gross Domestic Product:
Nominal 14.0% 14.5% 7.1% 11.2% 14.9% 14.3% 11.8% 12.3%
Real 10.1% 10.1% 6.4% 7.0% 8.1% 10.1% 8.9% 8.3%
Inflation (CPI) 3.0% 2.3% 2.3% 3.4% 3.4% 2.7% 2.5% 2.9%
Trade Balance (S$ mil) 2106 -2786 -1258 -207 -1549 -340 -646 -739
Current Account Balance (S$ mil) 11950 5173 6155 4688 3181 8562 7759 6229
Interest Rates:
Short Term (Deposit rate) 3.0% 2.3% 2.9% 4.6% 4.7% 2.7% 2.7% 3.5%
Exchange Rates US$/S$ 0.6846 0.6219 0.6079 0.6133 0.5732 0.6532 0.6381 0.6202
- -----------------------------------------------------------------------------------------------------------------------------
SOUTH AFRICA
Gross Domestic Product:
Nominal 13.0% 12.3% 10.0% 12.3% 14.7% 12.7% 11.8% 12.5%
Real 2.3% 1.1% -2.2% -1.0% -0.3% 1.7% 0.4% -0.0%
Inflation (CPI) 9.0% 9.7% 13.9% 15.3% 14.4% 9.3% 10.8% 12.4%
Trade Balance (Rand mil) 3656 5781 5429 6134 6783 4719 4955 5557
Current Account Balance (Rand mil) -573 1804 1376 2243 2065 616 869 1383
Interest Rates:
Short Term (T-Bills) 10.9% 11.3% 13.8% 16.7% 17.8% 11.1% 12.0% 14.1%
Long Term (Govt Bonds) 14.8% 14.0% 15.4% 16.3% 16.2% 14.4% 14.7% 15.3%
ExchangeRates US$/Rand 0.2822 0.2943 0.3276 0.3646 0.3902 0.2883 0.3014 0.3318
----------------------------------------------------------------------------------------------------------------------------
SOUTH KOREA
Gross Domestic Product:
Nominal NA 10.5% 11.4% 20.2% 20.4% 10.9% 13.9% 14.8%
Real NA 5.5% 5.1% 9.1% 9.5% 5.3% 6.6% 7.1%
Inflation (CPI) NA 4.8% 6.2% 9.3% 8.6% 5.5% 6.8% 6.9%
Trade Balance (Won bil) NA 1860 -2146 -6980 -2004 -143 -2422 -935
Current Account Balance (Won bil) NA 384 -4529 -8726 -2172 -2073 -4290 -1997
Interest Rates:
Short Term (Deposit rate) NA 8.6% 10.0% 10.0% 10.0% 9.3% 9.5% 9.7%
Long Term (Govt Bonds) NA 12.1% 15.1% 16.5% 15.0% 13.6% 14.6% 14.7%
Exchange Rates US$/Won NA 0.0012 0.0013 0.0013 0.0014 0.0013 0.0013 0.0013
- -----------------------------------------------------------------------------------------------------------------------------
SWEDEN
Gross Domestic Product:
Nominal 5.2% 0.0% -0.4% 6.4% 10.3% 2.6% 1.6% 4.2%
Real 2.2% -2.6% -1.4% -1.7% 1.4% -0.2% -0.6% -0.4%
Inflation (CPI) 2.6% 4.5% 2.8% 9.0% 9.9% 3.5% 3.3% 5.7%
Trade Balance (Kronor mil) 9583 7669 6723 6359 3402 8626 7992 6747
Current Account Balance (Kronor mil) 826 -4078 -8790 -4632 -6338 -1626 -4014 -4602
Interest Rates:
Short Term (T-Bills) 7.4% 8.4% 12.9% 11.6% 13.7% 7.9% 9.5% 10.8%
Long Term (Govt Bonds) 9.4% 8.5% 10.0% 10.7% 13.1% 9.0% 9.3% 10.3%
Exchange Rates US$/Kronor 0.1340 0.1204 0.1420 0.1808 0.1755 0.1272 0.1321 0.1506
- -----------------------------------------------------------------------------------------------------------------------------
<PAGE>
SWITZERLAND
Gross Domestic Product:
Nominal 2.6% 1.2% 2.3% 5.4% 8.1% 1.9% 2.1% 3.9%
Real 1.2% -0.8% -0.3% -0.0% 2.3% 0.2% 0.0% 0.5%
Inflation (CPI) 0.8% 3.4% 4.1% 5.8% 5.4% 2.1% 2.7% 3.9%
Trade Balance (S.Francs mil) 3330 -1572 -285 -4597 -7174 879 491 -2060
Current Account Balance (S.Francs mil) 18495 17849 14235 10374 6941 18172 16860 13579
Interest Rates:
Short Term (T-Bills) 4.0% 4.8% 7.8% 7.7% 8.3% 4.4% 5.5% 6.5%
Long Term (Govt Bonds) 5.2% 4.1% 5.5% 6.4% 6.7% 4.6% 4.9% 5.6%
Exchange Rates US$/Franc 0.7625 0.6759 0.6868 0.7377 0.7719 0.7192 0.7084 0.7270
- -----------------------------------------------------------------------------------------------------------------------------
UNITED KINGDOM
Gross Domestic Product:
Nominal 6.1% 5.6% 3.8% 4.4% 6.8% 5.8% 5.2% 5.3%
Real 3.8% 2.3% -0.5% -2.0% 0.4% 3.0% 1.8% 0.8%
Inflation (CPI) 2.5% 1.5% 3.7% 5.9% 9.5% 2.0% 2.6% 4.6%
Trade Balance (UK(pound)mil) -16127 -20117 -23428 -18274 -32742 -18122 -19891 -22138
Current Account Balance (UK(pound)mil) -2391 -16633 -17175 -15270 -33468 -9512 -12066 -16987
Interest Rates:
Short Term (T-Bills) 5.2% 5.2% 8.9% 11.0% 14.1% 5.2% 6.4% 8.9%
Long Term (Govt Bonds) 8.1% 7.9% 9.2% 9.9% 11.1% 8.0% 8.4% 9.2%
Exchange Rates US$/UK(pound) 1.5625 1.4812 1.5120 1.8707 1.9280 1.5219 1.5186 1.6709
- -----------------------------------------------------------------------------------------------------------------------------
UNITED STATES
Gross National Product:
Nominal 6.2% 5.4% 5.2% 3.6% 5.2% 5.8% 5.6% 5.1%
Real 4.1% 3.1% 3.3% -1.2% 0.8% 3.6% 3.5% 2.0%
Inflation (CPI) 2.5% 3.0% 3.1% 4.2% 5.4% 2.8% 2.9% 3.6%
Trade Balance (US$ bil) -164 -131 -96 -74 -109 -148 -131 -115
Current Account Balance (US$ bil) -151 -100 -62 -8 -93 -125 -104 -83
Interest Rates:
Short Term (T-Bills) 4.3% 3.0% 3.5% 5.4% 7.5% 3.6% 3.6% 4.7%
Long Term (Govt Bonds) 7.1% 5.8% 7.0% 7.9% 8.6% 6.5% 6.6% 7.3%
- -----------------------------------------------------------------------------------------------------------------------------
<FN>
Note: * Information is obtained primarily from the International Monetary Fund and is believed reliable, but accuracy and
completeness are not guaranteed.
</FN>
</TABLE>
APPENDIX B
--------------------
GLOBAL CUSTODY NETWORK
ARGENTINA
Citibank, N.A.
Buenos Aires
AUSTRALIA
National Australia Bank
Melbourne
AUSTRIA
Euroclear
BANGLADESH
Standard Chartered
BELGIUM
Euroclear
BRAZIL
Banco de Boston
Sao Paulo
CANADA
World Bank of Canada
CHILE
Bank of Boston
CHINA
Standard Chartered, Shenzhen
Standard Chartered, Shanghai
COLOMBIA
Citibank, S.A.
Bogota
CZECH REPUBLIC
Chase Manhattan Bank
DENMARK
Euroclear
FINLAND
Euroclear
FRANCE
Euroclear
GERMANY
Euroclear
GREECE
Citibank, N.A.
Athens
HONG KONG
Standard Chartered Bank
Hong Kong
HUNGARY
Citibank, N.A.
INDIA
State Bank of India
INDONESIA
Standard Chartered Bank
Jakarta
IRELAND
Bank of Ireland
Securities Services
ISRAEL
Chase Manhattan Bank
ITALY
Citibank, N.A.
JAPAN
Standard Chartered Bank
Tokyo
KOREA
Standard Chartered Bank
Seoul
LUXEMBOURG
Euroclear
MALAYSIA
Standard Chartered Bank
MEXICO
Bancomer, S.A.
MOROCCO
Chase Manhattan Bank
NETHERLANDS
Euroclear
NEW ZEALAND
National Australia Bank
Aukland
NORWAY
Euroclear
PAKISTAN
Standard Chartered Bank
Karachi
PERU
Citibank, N.A.
Lima
PHILLIPINES
Standard Chartered Bank
Manila
POLAND
Citibank, N.A.
PORTUGAL
Euroclear
PUERTO RICO
Citibank, N.A.
SINGAPORE
Standard Chartered Bank
SOUTH AFRICA
Standard Bank of South Africa
SPAIN
Euroclear
SRI LANKA
Standard Chartered Bank
SWEDEN
Euroclear
SWITZERLAND
Bank Leu
TAIWAN
Standard Chartered Bank
Taipei
THAILAND
Standard Chartered Bank
Bangkok
TURKEY
Chase Manhattan, N.A.
Istanbul
UNITED KINGDOM
Barclays Bank PLC
London
VENEZUELA
Citibank, N.A.
Caracas
ZIMBABWE
Barclays Bank PLC
<PAGE>
DEPOSITORIES
ARGENTINA
Caja De Valores
("CDV")
AUSTRALIA
Austra clear
AUSTRIA
Oesterreichische Kontrollbank A.G./
Wertpapiersammelbank A.G.
("OEKB/WSB")
BELGIUM
Caisse Interprofessionnelle de Depots et de Virement de Titres S.A.
("CIK")
BRAZIL
Bovespa
CANADA
Canadian Depository
for Securities Limited
("CDS")
CHINA
Shenzen Central Registrars Co.
COLUMBIA
Banco de la Republica
CZECH REPUBLIC
SCP
DENMARK
Vaerdipapircentralen
("VP")
FINLAND
Central Share Depository
FRANCE
Societe Interprofessionnelle
pour la Compensation des Valeurs
Mobilieres ("SICOVAM")
GERMANY
Deutscher Kassenverein A.G.
("DKV")
GREECE
Central Securities Depository, S.A.
("CSD")
HONG KONG
CCASS
HUNGARY
Keler
IRELAND
Gilt Settlement Office
("GSO")
ISRAEL
The Stock Exchange
Clearing House Ltd.
ITALY
Monte Titoli SpA Instituto per la
Custodia e l'Amministrazione
Accentrata di Valori Mobiliari
("Monte Titoli")
JAPAN
Japan Securities Depository Center
("JASDEC")
KOREA
KSD
LUXEMBOURG
Centrale de Livraison de Valeurs
Mobieres ("CEDEL")
MALAYSIA
Malaysian Central Depository
MEXICO
Instituto para el Deposito de Valores
("Indeval")
NETHERLANDS
Nederlands Centraal Instituut voor
Giraal Effectenverkeer B.V. ("Necigef")
NEW ZEALAND
Austraclear
NORWAY
Verdipapirsentralen
("VPS")
PERU
Caval
POLAND
National Depository of Securities
PORTUGAL
Central de Valores Mobiliarios
SINGAPORE
Central Depository
(PTE) Ltd.
SPAIN
Servico Compen savion
Y Liquidation
SRI LANKA
Central Depository System
(PVT)
SWEDEN
Vardepappers Centralen
SWITZERLAND
Schweizerische. Effecten-Giro A.G.
("SEGA")
TAIWAN
Taiwan Securities
Central Depository Co.
THAILAND
Share Depository Center
UNITED KINGDOM
CGO, CMO
<PAGE>
