As filed with the Securities and Exchange Commission on April 29,1997
1933 Act File No. 33-30085
1940 Act File No. 811-5866
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-1A
REGISTRATION STATEMENT
UNDER
SECURITIES ACT OF 1933 [x]
POST-EFFECTIVE AMENDMENT NO. 13 [x]
REGISTRATION STATEMENT
UNDER
THE INVESTMENT COMPANY ACT OF 1940 [x]
AMENDMENT NO. 16 [x]
The Wright EquiFund Equity Trust
(Exact Name of Registrant as Specified in Charter)
24 Federal Street, Boston, Massachusetts 02110
(Address of Principal Executive Offices)
617-482-8260
(Registrant's Telephone Number)
Alan R. Dynner
24 Federal Street, Boston, Massachusetts 02110
(Name and Address of Agent for Service)
It is proposed that this filing will become effective (check appropriate box):
[ ]Immediately upon filing pursuant to paragraph (b)
[x] On May 1, 1997 pursuant to paragraph (b)
[ ] 60 days after filing pursuant to paragraph (a)(1)
[ ]On (date) pursuant to paragraph (a)(1)
[ ] 75 days after filing pursuant to paragraph (a)(2)
[ ]On (date) pursuant to paragraph (a)(2) of rule 485
If appropriate, check the following box:
[ ] This post-effective amendment designates a new effective date for a
previously filed post-effective amendment.
CALCULATION OF REGISTRATION FEE
<TABLE>
<CAPTION>
=================================================================================================================================
Title of Securities Amount of Shares Proposed Maximum Proposed Aggregate Amount of
Being Registered Being Registered Offering Price Per Share Maximum Offering Price Registration Fee
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares of beneficial interest 2,999,716 $3.50(1) $10,499,006(2) $ 0
=================================================================================================================================
(1) Computed under Rule 457(d) on the basis of the maximum aggregate offering
price per share at the close of business on April 17, 1997.
(2) Registrant elects to calculate the maximum aggregate offering price pursuant
to Rule 24e-2. $165,999,177 of shares were redeemed during the fiscal year
ended December 31, 1996. $155,500,172 of shares were used for reductions
pursuant to Paragraph (c) of Rule 24f-2 during such fiscal year. $10,499,005
of shares redeemed are being used for the reduction of the registration fee
in this Amendment.
</TABLE>
The Registrant has filed a Declaration pursuant to Rule 24f-2 and on February
25, 1997 filed its "Notice" as required by that Rule for the fiscal year ended
December 31, 1996. Registrant continues its election to register an indefinite
number of shares of beneficial interest pursuant to Rule 24f-2.
<PAGE>
This Amendment to the registration statement on Form N-1A consists of the
following documents and papers:
Cross Reference Sheet required by Rule 481(a) under Securities Act of 1933.
Part A -- The Prospectus of
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
Part B -- Statement of Additional Information of
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
Part C -- Other Information
Signatures
Exhibit Index Required by Rule 483(a) under the Securities Act of 1933
Exhibits
<PAGE>
<TABLE>
<CAPTION>
The Wright EquiFund Equity Trust
Cross Reference Sheet
<S> <C> <C>
Item No. Statement of
FORM N-1A--Part A Prospectus Caption Additional Information Caption
- ------------------------------------------------------------------------------------------------------------------------------
1..................... Front Cover Page
2..................... An Introduction to the Funds,
Shareholder and Fund Expenses
3..................... Financial Highlights
4..................... An Introduction to the Funds, The Funds and their
Investment Objectives and Policies, Policies that Apply
to the Funds, Other Investment Policies, Other
Information, Appendix
5..................... The Investment Adviser, The Administrator,
Distribution Expenses, Back Cover
5(a).................. Not Applicable
6..................... Other Information, Distributions by the
Funds, Taxes
7..................... How to Buy Shares, How the Funds
Value their Shares, How Shareholder
Accounts are Maintained, How to
Exchange Shares, Tax-Sheltered
Retirement Plans
8..................... How to Redeem or Sell Shares
9..................... Not Applicable
Form N-1A -- Part B
- -------------------------------------------------------------------------------------------------------------------------------
10.................... Front Cover Page and Back Cover
11.................... Table of Contents
12.................... General Information and History
13.................... Investment Objectives and Policies,
Investment Restrictions
14.................... Officers and Trustees
15.................... Control Persons and Principal Holders
of Shares
16.................... Investment Advisory and Administra-
tive Services, Custodian, Independent
Certified Public Accountants, Back
Cover
17.................... Brokerage Allocation
18.................... Fund Shares and Other Securities
19.................... How to Buy Shares, How to Redeem Purchase, Exchange, Redemption,
or Sell Shares, How the Funds Value and Pricing of Shares
their Shares
20.................... Taxes Taxes
21.................... Principal Underwriter
22.................... Performance Information
23.................... Financial Statements
</TABLE>
<PAGE>
Part A - Information Required In A Prospectus
- -------------------------------------------------------------------------------
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, 1997 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.,
1000 Lafayette Blvd., Bridgeport, CT 06604( Telephone: 800-888-9471) or from the
Fund Adviser's web site(http://www.wisi.com). In addition, The Securities and
Exchange Commission maintains a Web site (http://www.sec.gov)that contains the
Statement of Additional Information, material incorporated by reference and
other information regarding the Funds.
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, 1997
<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................................... 28
Distribution Expenses............................... 28
How the Funds Value their Shares.................... 30
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 19 series, 17 of which are
described in this Prospectus (each a "Wright EquiFund" and collectively the
"Wright EquiFunds"). The remaining two series are being offered under a separate
prospectus. 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
<PAGE>
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.
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
and Administrator........... Each Fund has engaged Wright Investors'
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.
<PAGE>
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.
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 Automatic Investment Program 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.
There is a 1.5% redemption fee on shares redeemed within 30 days of purchase,
unless the purchase was for a fee-based investment account. See "How to Redeem
or Sell Shares."
<PAGE>
Exchange Privilege............... Shares of the Funds may be exchanged for
Standard 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 under "How to Exchange Shares."
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
<TABLE>
<CAPTION>
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% 0.24% 0.25% 0.25% 0.25%
Other Expenses (including administration
fee of 0.10%) (2) 0.68% 1.35% 0.68% 0.62% 0.75%
------ ------ ------ ------ ------
Total Net Operating Expenses (after reductions) (3) (4) 1.68% 2.34% 1.68% 1.62% 1.75%
====== ====== ====== ====== ======
</TABLE>
<TABLE>
<CAPTION>
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% 0.69% 0.46% 0.70%
Rule 12b-1 Distribution Expenses (after expense
reduction) (1) 0.25% 0.18% 0.00% 0.23%
Other Expenses (including administration
fee of 0.10%) (2) 0.59% 1.35% 1.75% 1.15%
------ ------ ------ ------
Total Net Operating Expenses (after reductions) (3) (4) 1.59% 2.22% 2.21% 2.08%
====== ====== ====== ======
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
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 reductions) (3) (4) 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%
====== ====== ====== ====== ====== ====== ====== ======
- ----------------------------------------------------------------------------------------------------------------------------------
* These Funds are not offered for sale and have not commenced operations.
+ The redemption fees are applicable only for shares redeemed within 30 days of
their purchase.
(1) After reduction by the Investment Adviser or the Principal Underwriter,
which is expected to continue until December 31, 1997. 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, 1997,
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 and the
Investment Adviser was allocated certain expenses relating to the operations
of the Britain, Netherlands, Nordic, and Switzerland Funds during the 1996
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. If no fee
reductions or expense allocations were made, the Annualized Fund Operating
Expenses as a percentage of average net assets, including investment
advisory fees at a maximum of 0.75% of average daily net assets would have
been: Britain 2.42%; Netherlands 2.38%; Nordic 2.78%; Switzerland 2.21%;
and, for the Funds with no operating experience prior to 1997, 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, 1997.
(4) During the year ended December 31, 1996, 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
1.55%; Britain 2.00%; Germany 1.57%; Hong Kong 1.43%; Japan 1.65%; Mexico
1.41%; Netherlands 1.99%; Nordic 1.99%; and Switzerland 2.00%.
</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:
1 Year (1) 3 Years 5 Years 10 Years
-------------------------------------------------
Australasia* $ 20 $ 63
Austria* 20 63
Belgium/Luxembourg 17 53 $ 91 $199
Britain 24 73 125 268
Canada* 20 63
France* 20 63
Germany 17 53 91 199
Hong Kong 16 51 88 192
Ireland* 20 63
Japan 18 55 95 206
Mexico 16 50 87 189
Netherlands 23 69 119 255
Nordic 22 69 118 254
Switzerland 21 65 112 241
United States* 20 63
Global* 20 63
International* 20 63
* These Funds are not offered for sale and have not commenced operations.
(1) In the Example above, expenses would be $15 more in the first year if an
investor redeems his or her shares within 30 days of their purchase.
- -------------------------------------------------------------------------------
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, 1996. 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 Conduct Rules of the
National Association of Securities Dealers, Inc.
<PAGE>
Financial Highlights
The following information should be read in conjunction with the audited
financial statements that appear in the Funds' annual report to shareholders.
The Funds' financial statements have been audited by Deloitte & Touche LLP,
independent certified public accountants, as experts in accounting and auditing.
The financial statements and the independent auditors' report are incorporated
by reference into the 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 Funds'
Principal Underwriter, Wright Investors' Service Distributors, Inc. at (800)
888-9471.
<TABLE>
<CAPTION>
THE WRIGHT EQUIFUND EQUITY TRUST
BELGIUM/LUXEMBOURG FUND
Year Ended December 31
--------------------------------
1996 1995 1994(1)
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value -- beginning of year. $ 12.010 $ 10.240 $ 10.000
-------- -------- --------
Income from Investment Operations:
Net investment income............... $ 0.171 $ 0.156 $ 0.106
Net realized and unrealized gain.... 2.334 1.904 0.174
-------- -------- --------
Total income from investment
operations....................... $ 2.505 $ 2.060 $ 0.280
-------- -------- --------
Less Distributions:
From net investment income.......... $ (0.100) $ (0.050) $ (0.040)
From net realized gains on investments (1.025) (0.240) --
-------- -------- --------
Total distributions................ $ (1.125) $ (0.290) $ (0.040)
-------- -------- --------
Net asset value -- end of year....... $ 13.390 $ 12.010 $ 10.240
========= ========= =========
Total Return(3)...................... 20.99% 20.28% 2.81%
Annualized Ratios/Supplemental Data:
Net assets, end of year
(000 omitted)...................... $ 19,185 $ 14,753 $ 11,437
Ratio of net expenses to average daily
net assets......................... 1.68%(4) 1.76%(4) 1.62%(2)
Ratio of net investment income
to average daily net assets........ 1.20% 1.52% 0.95%(2)
Portfolio Turnover Rate............. 34% 38% 26%
Average commision rate paid(5)...... $ 0.4536 -- --
<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. 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 1.55% and 1.53% for the
years ended December 31, 1996 and 1995, respectively.
(5)Average commission rate paid is computed by dividing the total dollar
amount of commissions paid during the fiscal year by the total number of
shares purchased and sold during the fiscal year on which commissions were
charged. For fiscal years beginning on or after September 1, 1995, a Fund is
required to disclose its average commission rate per share for security
trades on which commissions are charged.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE WRIGHT EQUIFUND EQUITY TRUST
BRITAIN FUND
Year Ended December 31
1996 1995(2)
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value -- beginning of year. $ 10.400 $ 10.000
--------- ---------
Income from Investment Operations:
Net investment income............... $ 0.101 $ 0.213
Net realized and unrealized gain.... 2.369 0.892
--------- ---------
Total income from investment
operations....................... $ 2.470 $ 1.105
--------- ---------
Less Distributions:
From net investment income.......... $ (0.020) $ (0.150)
From net realized gains on investments (3.760) (0.555)
---------- ---------
Total distributions................ $ (3.780) $ (0.705)
--------- ---------
Net asset value -- end of year....... $ 9.090 $ 10.400
========== ==========
Total Return(3)...................... 26.67% 11.10%
Annualized Ratios/Supplemental Data:
Net assets, end of year (000 omitted) $ 3,809 $ 13,932
Ratio of net expenses to average daily net
assets(1) ......................... 2.34%(5) 1.56%(4)(5)
Ratio of net investment income
to average daily net assets(1) .... 2.46% 2.77%(4)
Portfolio Turnover Rate............. 93% 42%
Average commission rate paid(6) .... $ 0.200 --
<FN>
(1)During the year ended December 31, 1996, 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 income per share and the ratios would have been
as follows:
1996
Net Investment Income per share...... $ 0.098
==========
Annualized Ratios (As a percentage of average daily net assets):
Expenses............................ 2.42%
==========
Net investment income............... 2.38%
==========
(2) For the period from start of business, April 20, 1995, to December 31,1995.
(3)Total investment return is calculated assuming a purchase at the net asset
value on the first day and a sale at the net asset value on the last day of
each period reported. Dividends and distributions, if any, are assumed to be
invested at the net asset value on the record date.
(4) Annualized.
(5)Custodian fees were reduced by credits resulting from cash balances the
Trust maintained with the custodian. 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% and 1.24% for the
years ended December 31, 1996 and 1995, respectively.
(6)Average commission rate paid is computed by dividing the total dollar
amount of commissions paid during the fiscal year by the total number of
shares purchased and sold during the fiscal year on which commissions were
charged. For fiscal years beginning on or after September 1, 1995, a Fund is
required to disclose its average commission rate per share for security
trades on which commissions are charged.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE WRIGHT EQUIFUND EQUITY TRUST
GERMANY FUND
Year Ended December 31
1996 1995(1)
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value -- beginning of year. $ 9.240 $ 10.000
-------- --------
Income from Investment Operations:
Net investment income (loss)........ $ (0.001) $ 0.073
Net realized and unrealized gain (loss) 1.391 (0.783)
-------- --------
Total income (loss) from investment
operations....................... $ 1.390 $ (0.710)
Less Distributions:
From net investment income.......... --- (0.050)
-------- --------
Net asset value -- end of year....... $ 10.630 $ 9.240
========= =========
Total Return(2)...................... 15.04% (7.09%)
Annualized Ratios/Supplemental Data:
Net assets, end of year
(000 omitted)...................... $ 23,138 $ 16,419
Ratio of net expenses to average daily net
assets............................. 1.68%(4) 1.59%(3)(4)
Ratio of net investment income (loss)
to average daily net assets........ (0.08%) 0.91%(3)
Portfolio Turnover Rate............. 77% 18%
Average commission rate paid (5) ... $ 0.0198 $ --
<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. 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 1.57% and 1.29% for the
years ended December 31, 1996 and 1995, respectively.
(5)Average commission rate paid is computed by dividing the total dollar
amount of commissions paid during the fiscal year by the total number of
shares purchased and sold during the fiscal year on which commissions were
charged. For fiscal years beginning on or after September 1, 1995, a Fund is
required to disclose its average commission rate per share for security
trades on which commissions are charged.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE WRIGHT EQUIFUND EQUITY TRUST
HONG KONG FUND
Year Ended December 31
------------------------------------------------------------
1996 1995 1994 1993 1992 1991 1990(2)
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value -- beginning of year.. $13.030 $13.020 $20.990 $11.770 $10.270 $ 8.360 $10.000
------ ------ ------ ------ ------ ------ ------
Income from Investment Operations:
Net investment income(1)............. $ 0.182$ 0.368 $0.678 $ 0.426 $ 0.330 $ 0.266$ 0.093
Net realized and unrealized gain
(loss)(4)........................... 3.458 (0.158) (8.448) 9.394 1.355 2.474 (1.733)
------ ------ ------ ------ ------ ------ ------
Total income (loss)
from investment operations.......... $ 3.640$ 0.210 $ (7.770)$ 9.820 $ 1.685 $ 2.740$ (1.640)
------ ------ ------ ------ ------ ------ ------
Less Distributions:
From net investment income........... $ (0.200)$ (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)$ (0.200)$ (0.600)$ (0.185)$ (0.830) --
------ ------ ------ ------ ------ ------ ------
Net asset value -- end of year........ $16.470 $13.030 $13.020 $20.990 $11.770 $10.270$ 8.360
======= ======= ======= ======= ======= ======= =======
Total Return(3) ...................... 27.96% 1.63% (37.03%) 84.32% 16.33% 34.34% (17.20%)
Annualized Ratios/Supplemental Data:
Net assets, end of year (000 omitted) $34,366 $25,399 $19,679 $16,210 $3,545 $235 $301
Ratio of net expenses to average daily net
assets.............................. 1.62%(5)1.59%(5) 1.41% 2.00% 2.00% 2.00% 2.00%(6)
Ratio of net investment income
to average daily net assets......... 1.81% 3.26% 3.93% 3.01% 3.13% 2.88% 2.17%(6)
Portfolio Turnover Rate.............. 65% 100% 131% 76% 39% 77% 58%
Average commission rate paid (7) .... $0.0095 -- -- -- -- -- --
<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 1990(2)
- ----------------------------------------------------------------------------------------------------------
Net investment income (loss) per share $0.419 $0.093 $(0.871)$(0.819)
======= ======= ======= =======
Annualized Ratios (As a percentage of average daily net assets):
Expenses............................. 2.05% 4.25% 14.31% 23.28%
======= ======= ======= =======
Net investment income (loss)......... 2.96% 0.88% (9.43%)(19.11%)
======= ======= ======= =======
(2)For the period from the start of business, June 28, 1990, to December 31,
1990.
(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)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.
(5)Custodian fees were reduced by credits resulting from cash balances the
Trust maintained with the custodian. 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 1.43% and 1.34% for the
years ended December 31, 1996 and 1995, respectively.
(6)Annualized.
(7)Average commission rate paid is computed by dividing the total dollar
amount of commissions paid during the fiscal year by the total number of
shares purchased and sold during the fiscal year on which commissions were
charged. For fiscal years beginning on or after September 1, 1995, a Fund is
required to disclose its average commission rate per share for security
trades on which commissions are charged.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE WRIGHT EQUIFUND EQUITY TRUST
JAPAN FUND
Year Ended December 31
1996 1995 1994(1)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value -- beginning of year. $ 8.780 $ 9.660 $ 10.000
-------- -------- --------
Income from Investment Operations:
Net investment loss................. $ (0.095) $ (0.045) $ (0.050)
Net realized and unrealized loss.... (0.705) (0.835) (0.170)
-------- -------- --------
Total loss from investment
operations....................... $ (0.800) $ (0.880) $ (0.220)
Less Distributions:
From net realized gains on
investments........................ -- -- (0.120)
-------- -------- --------
Net asset value -- end of year....... $ 7.980 $ 8.780 $ 9.660
========= ========= =========
Total Return(3)...................... (9.11%) (9.11%) (2.17%)
Annualized Ratios/Supplemental Data:
Net assets, end of year
(000 omitted)...................... $ 17,041 $ 21,631 $ 8,653
Ratio of net expenses to average daily net
assets............................. 1.75%(4) 1.81%(4) 1.83% (2)
Ratio of net investment loss
to average daily net assets........ (1.05%) (0.67%) (0.66%)(2)
Portfolio Turnover Rate............. 56% 112% 48%
Average commission rate paid(5) .... $ 0.0917 -- --
<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. 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 1.65% and 1.49% for the
years ended December 31, 1996 and 1995, respectively.
(5)Average commission rate paid is computed by dividing the total dollar
amount of commissions paid during the fiscal year by the total number of
shares purchased and sold during the fiscal year on which commissions were
charged. For fiscal years beginning on or after September 1, 1995, a Fund is
required to disclose its average commission rate per share for security
trades on which commissions are charged.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE WRIGHT EQUIFUND EQUITY TRUST
MEXICO FUND
Year Ended December 31
1996 1995 1994(1)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value -- beginning of year. $ 4.220 $ 6.480 $ 10.000
-------- -------- --------
Income from Investment Operations:
Net investment loss................. $ (0.012) $ (0.012) $ (0.040)
Net realized and unrealized gain (loss) 1.172 (2.175) (2.970)
-------- -------- --------
Total income (loss) from investment
operations....................... $ 1.160 $ (2.187) $ (3.010)
-------- -------- --------
Less Distributions:
From net realized gain on investments $ -- $ (0.030) $ (0.510)
In excess of net realized gains
on investments(6) ................. -- (0.043) --
-------- -------- --------
Total distributions................ $ -- $ (0.073) $ (0.510)
-------- -------- --------
Net asset value -- end of year....... $ 5.380 $ 4.220 $ 6.480
========= ========= =========
Total Return(3)...................... 27.49% (33.37%) (30.91%)
Annualized Ratios/Supplemental Data:
Net assets, end of year
(000 omitted)...................... $ 22,028 $ 32,493 $ 13,422
Ratio of net expenses to average daily net
assets............................. 1.59%(4) 1.72%(4) 1.38%(2)
Ratio of net investment loss
to average daily net assets........ (0.14%) (0.41%) (0.98%)(2)
Portfolio Turnover Rate............. 63% 110% 85%
Average commision rate paid(5) ..... $ 0.0045 -- --
<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. 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 1.41% and 1.39% for the
years ended December 31, 1996 and 1995, respectively.
(5)Average commission rate paid is computed by dividing the total dollar
amount of commissions paid during the fiscal year by the total number of
shares purchased and sold during the fiscal year on which commissions were
charged. For fiscal years beginning on or after September 1, 1995, a Fund is
required to disclose its average commission rate per share for security
trades on which commissions are charged.
(6)The Fund has followed the Statement of Position (SOP) 93-2: Determination,
Disclosure and Financial Statement Presentation of Income, Capital Gain, and
Return of Capital Distribution by Investment Companies. The SOP requires
that differences in the recognition or classification of income between the
financial statements and tax earnings and profits that result in temporary
over-distributions for financial statement purposes, are classified as
distributions in excess of net investment income or accumulated net realized
gains.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE WRIGHT EQUIFUND EQUITY TRUST
NETHERLANDS FUND
Year Ended December 31
----------------------
1996 1995 1994 1993(3) 1992 1991 1990(2)
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value -- beginning of year.. $ 8.590$ 8.100 $10.020 $ 8.460 $ 9.420 $ 8.650 $10.000
------ ------ ------ ------ ------ ------ ------
Income from Investment Operations:
Net investment income (loss)(1)...... $ 0.047$ (0.004)$ (0.060)$ (0.015)$ 0.108 $ 0.114$ (0.014)
Net realized and unrealized gain (loss) 2.943 1.490 1.150 1.655 (0.958) 0.756 (1.336)
------ ------ ------ ------ ------ ------ ------
Total income (loss) from investment
operations....................... $ 2.990 $ 1.486 $ 1.090 $ 1.640 $ (0.850)$ 0.870 $(1.350)
------ ------ ------ ------ ------ ------ ------
Less Distributions:
From net investment income........... $ -- $ -- $ (0.020)$ (0.080)$ (0.110)$ (0.100)$ --
From net realized gains on investments (2.610) (0.996) (2.990) -- -- -- --
------ ------ ------ ------ ------ ------ ------
Total Distributions.................. $ (2.610)$ (0.996)$ (3.010)$ (0.080)$ (0.110)$ (0.100)$ --
------ ------ ------ ------ ------ ------ ------
Net asset value -- end of year........ $ 8.970$ 8.590 $ 8.100 $10.020 $ 8.460 $ 9.420$ 8.650
======= ======= ======= ======= ======= ======= =======
Total Return(4) ...................... 36.56% 18.84% 11.68% 19.52% (9.18%) 10.00% (14.30%)
Annualized Ratios/Supplemental Data:
Net assets, end of year (000 omitted) $7,566 $7,218 $3,951 $8,753 $165 $134 $288
Ratio of net expenses to average daily
net assets(1) ...................... 2.22%(5)2.26%(5) 1.93% 2.00% 2.00% 1.69% 2.00% (6)
Ratio of net investment income (loss)
to average daily net assets(1) ..... 0.83% (0.13%) 0.13% (0.16%) 1.26% 1.39% (0.31%)(6)
Portfolio Turnover Rate.............. 124% 87% 101% 47% 69% 59% 7%
Average commision rate paid(7) ...... $0.1882 -- -- -- -- -- --
<FN>
(1)During each of the periods presented (except 1994), the Investment Adviser,
the Administrator and/or 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:
1996 1995 1993(3) 1992 1991 1990(2)
- --------------------------------------------------------------------------- -----------------------
Net investment income (loss) per share $0.038 $(0.018) $(0.085) $(2.481) $(1.078)$(0.893)
======= ======= ======= ======= ======= =======
Annualized Ratios (As a percentage of average daily net assets):
Expenses............................. 2.38% 2.45% 2.75% 32.21% 16.23% 21.47% (6)
======= ======= ======= ======= ======= =======
Net investment income (loss)......... 0.67% (0.58%) (0.91%) (28.95%) (13.15%)(19.78%)(6)
======= ======= ======= ======= ======= =======
(2) For the period from the start of business, June 28, 1990, to December 31, 1990.
(3) Certain of the per share data are based on average shares outstanding.
(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. 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 1.99% and 2.00% for the
years ended December 31, 1996 and 1995, respectively.
(6) Annualized.
(7)Average commission rate paid is computed by dividing the total dollar
amount of commissions paid during the fiscal year by the total number of
shares purchased and sold during the fiscal year on which commissions were
charged. For fiscal years beginning on or after September 1, 1995, a Fund is
required to disclose its average commission rate per share for security
trades on which commissions are charged.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE WRIGHT EQUIFUND EQUITY TRUST
NORDIC FUND
Year Ended December 31
1996 1995 1994(2)
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value -- beginning of year. $ 11.330 $ 9.500 $ 10.000
-------- -------- --------
Income from Investment Operations:
Net investment income (loss) (1).... $ (0.064) $ 0.072 $ (0.012)
Net realized and unrealized gain (loss) 3.694 1.808 (0.118)
-------- -------- --------
Total income (loss) from investment operations $ 3.630 $ 1.880 $ (0.130)
-------- -------- --------
Less Distributions:
From net investment income.......... $ -- $ (0.050) $ --
In excess of net realized gain on investments(7) (0.180) -- (0.366)
From paid-in capital................ -- -- (0.004)
-------- -------- --------
Total distributions................. $ (0.180) $ (0.050) $ (0.370)
-------- -------- --------
Net asset value -- end of year....... $ 14.780 $ 11.330 $ 9.500
========= ========= =========
Total Return(4)...................... 32.09% 19.80% (1.19%)
Annualized Ratios/Supplemental Data:
Net assets, end of year (000 omitted) $ 7,031 $ 3,504 $ 8,712
Ratio of net expenses to average daily net
assets(1) ......................... 2.21%(5) 2.24%(5) 1.78%(3)
Ratio of net investment income (loss)
to average daily net assets(1) .... (0.55%) 0.15% (0.35%)(3)
Portfolio Turnover Rate............. 78% 94% 33%
Average commission rate paid(6) .... $ 0.1131 -- --
<FN>
(1)During the years ended December 31, 1996 and 1995, the Investment Adviser
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:
1996 1995
Net investment loss per share........ $ (0.130) $ (0.523)
========= =========
Annualized Ratios (As a percentage of average daily net assets):
Expenses............................ 2.78% 3.25%
========= =========
Net investment loss................. (1.12%) (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. 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 1.99% and 2.00% for the
years ended December 31, 1996 and 1995, respectively.
(6)Average commission rate paid is computed by dividing the total dollar
amount of commissions paid during the fiscal year by the total number of
shares purchased and sold during the fiscal year on which commissions were
charged. For fiscal years beginning on or after September 1, 1995, a Fund is
required to disclose its average commission rate per share for security
trades on which commissions are charged.
(7)The Fund has followed the Statement of Position (SOP) 93-2: Determination,
Disclosure and Financial Statement Presentation of Income, Capital Gain, and
Return of Capital Distribution by Investment Companies. The SOP requires
that differences in the recognition or classification of income between the
financial statements and tax earnings and profits that result in temporary
over-distributions for financial statement purposes, are classified as
distributions in excess of net investment income or accumulated net realized
gains.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE WRIGHT EQUIFUND EQUITY TRUST
SWITZERLAND FUND
Year Ended December 31
1996 1995 1994(2)
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value -- beginning of year. $ 11.100 $ 9.430 $ 10.000
--------- --------- ---------
Income from Investment Operations:
Net investment income (loss)(1)..... $ (0.006) $ 0.060 $ 0.075
Net realized and unrealized gain
(loss)............................. 0.066 1.660 (0.595)
--------- --------- ---------
Total gain (loss) from investment
operations....................... $ 0.060 $ 1.720 $ (0.520)
Less Distributions:
From net realized gains on investments (0.310) (0.050) (0.050)
--------- --------- ---------
Net asset value -- end of year....... $ 10.850 $ 11.100 $ 9.430
========== ========== ==========
Total Return(4)...................... 0.54% 18.35% (5.19%)
Annualized Ratios/Supplemental Data:
Net assets, end of year
(000 omitted)...................... $ 6,109 $ 7,628 $ 3,813
Ratio of net expenses to average daily net
assets(1) ......................... 2.08%(5) 2.26%(5) 2.00%(3)
Ratio of net investment income (loss)
to average daily net assets(1) .... (0.02%) 0.72% 0.49%(3)
Portfolio Turnover Rate............. 55% 95% 94%
Average commission rate paid(6) .... $ 1.8608 -- --
<FN>
(1)During each of the periods presented, the Investment Adviser and/or the
Principal Underwriter reduced their fees. Had such actions not been
undertaken, net investment income (loss) per share and the ratios would have
been as follows:
1996 1995 1994(2)
- -------------------------------------------------------------------------------------------------
Net investment income (loss) per share $ (0.045) $ 0.027 $ 0.063
========== ========== ==========
Annualized Ratios (As a percentage of average daily net assets):
Expenses.......................... 2.21% 2.39% 2.08%(3)
========== ========== ==========
Net investment income (loss)...... (0.15%) 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. 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% for both the years
ended December 31, 1996 and 1995.
(6)Average commission rate paid is computed by dividing the total dollar
amount of commissions paid during the fiscal year by the total number of
shares purchased and sold during the fiscal year on which commissions were
charged. For fiscal years beginning on or after September 1, 1995, a Fund is
required to disclose its average commission rate per share for security
trades on which commissions are charged.
</FN>
</TABLE>
<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, rights, warrants 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, a Fund may invest up to 20% of its net assets in the short-term debt
securities described under "Special Considerations - Defensive Investments." In
addition, for temporary defensive purposes, a Fund may hold cash or invest more
than 20% of its net assets in these short-term debt securities.
Except as provided above and except for the fundamental investment
restrictions listed in the Statement of Additional Information, the investment
objective and policies of each Fund are not 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 objectives. 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 15,000
companies worldwide. Except with respect to United States investments, Wright
may utilize 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. The Investment Adviser
will select equity securities for a Fund's portfolio from companies in the
relevant Index, determine to sell securities in the Fund's portfolio, and
determine the amount to be invested in a security 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. Although each Fund may acquire for its portfolio only those securities
which are included in the relevant Index at the time of purchase, it is not
expected that the Fund's portfolio will necessarily resemble the Index either in
the number of securities included or in the amount invested in each security.
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. 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, determine to sell securities in the Fund's
portfolio, and determine the amount to be invested in a security 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). A Fund may not purchase any securities which would cause 25% or more
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.
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.
<PAGE>
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, subject to the requirements of the Internal Revenue Code of 1986, as
amended (the "Code") applicable to regulated investment companies, 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 pursuant to procedures established by the Trustees 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 pursuant to
procedures established by the Trustees 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
<PAGE>
the United States and, therefore, the volume and liquidity in those
markets may be less, and the 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 (transaction hedge). 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
(position hedge). 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, The Wright Managed Blue Chip Series Trust, and
Catholic Values Investment Trust (the "Wright Funds"). Wright, along with
Disclosure International, Inc., operates one of the world's largest and most
complete databases of financial information on over 15,000 domestic and
international corporations. The estate of John Winthrop Wright is the
controlling shareholder of Winthrop. At the end of 1996, 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, The Wright EquiFund Equity Trust, Catholic Values
Investment Trust and The Wright Blue Chip Master Portfolio. He is also a
director of Aetna Master Fund. 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 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 and joined Wright in 1972. 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.
Amit S. Khandwala, Vice President -- International Investments of Wright.
Mr. Khandwala received a BS (Economics, Accounting, International Business and
Computers) from University of Bombay, India, and an MBA (Investments, Corporate
Finance, International Finance & International Marketing) from the University of
Hartford. Mr. Khandwala has taught in the Executive MBA Program at the
University of Hartford Business School and his research on ADRs has been
published in The Journal of Portfolio Management. He was involved in the
establishing of the Stamford Society of Securities Analysts and is a member of
the New York Society of Security Analysts and the Hartford Society of Financial
Analysts. He joined Wright in 1986.
Charles T. Simko, Jr., Vice President -- Investment Research of Wright. Mr.
Simko received a BS in Mathematics from Fairfield University. He joined Wright
in 1985.
<PAGE>
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 1997 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%
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 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, 1996 and the advisory fee rate paid from
each such Fund during the fiscal year ended December 31, 1996. At December 31,
1996, the Australasia, Austria, Canada, France, Ireland, United States, Global,
and International Funds had not commenced operations.
<PAGE>
<TABLE>
<CAPTION>
Aggregate Fee Rate for the
Net Assets at 12/31/96 Fiscal YearEnded 12/31/96
<S> <C> <C>
Belgium/Luxembourg $19,185,149 0.75%
Britain(1) 3,808,725(3) 0.75%
Germany(2) 23,137,631 0.75%
Hong Kong 34,366,248 0.75%
Japan 17,040,939 0.75%
Mexico 22,027,664 0.75%
Netherlands 7,566,028(4) 0.69%
Nordic 7,030,976(5) 0.46%
Switzerland 6,108,503(6) 0.70%
(1) Start of business, April 20, 1995.
(2) Start of business, April 19, 1995.
(3) To enhance the net income of the Britain Fund, Wright made a reduction
of its advisory fee in the amount of $2,105 and was
allocated $2,410 of expenses related to the operation of the Fund.
(4) To enhance the net income of the Netherlands Fund, Wright made a reduction
of its advisory fee in the amount of $4,216 and was allocated $1,925 of
expenses related to the operation of the Fund. Absent a fee reduction, the
Fund would have paid advisory fees equivalent to 0.75% of average daily net
assets.
(5) To enhance the net income of the Nordic Fund, Wright made a reduction of its
advisory fee in the amount of $14,494 and was allocated $1,725 of expenses
related to the operation of the Fund. Absent a fee reduction, the Fund would
have paid advisory fees equivalent to 0.75% of average daily net assets.
(6) To enhance the net income of the Switzerland Fund, Wright made a reduction
of its advisory fee in the amount of $3,944 and was allocated $4,530 of
expenses related to the operation of the Fund. Absent a fee reduction, the
Fund would have paid advisory fees equivalent to 0.75% of average daily net
assets.
</TABLE>
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 employees of Wright or Winthrop; 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
<PAGE>
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 Code.
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 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
Under $100 Million $250 Million Over
$100 Million to $250 Million to $500 Million $500 Million
- -------------------------------------------------------------------------------
0.10% 0.06% 0.03% 0.02%
For the fiscal year ended December 31, 1996, 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 $17 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 the Rules 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
<PAGE>
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 Rule 2830 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 may 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. For the
fiscal year ended December 31, 1996, each Fund made distribution expense
payments (as an annualized percentage of average daily net assets as follows:
Belgium/Luxembourg (0.25%); Britain (0.24%); Germany (0.25%); Hong Kong (0.25%);
Japan (0.25%); Mexico (0.25%); Netherlands (0.18%); Nordic (0.00%); and
Switzerland (0.23%). WISDI reduced its distribution fees to the Britain,
Netherlands, Nordic and Switzerland Funds by $702, $5,104, $12,624 and $1,315,
respectively.
<PAGE>
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 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
<PAGE>
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.
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 Automatic Investment Program 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. 7750,
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
P.O. Box 5123
Westborough, Massachusetts 01581-5123
<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. 7750 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.
Automatic Investment Program -- for regular share accumulation: Cash
investments of $50 or more may be made through the shareholder's checking
account via automatic withdrawal each month or quarter. The $1,000 minimum
initial investment and small account redemption policy are waived for the
Automatic Investment Program 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 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 30.
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
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. 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 other transactions
(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 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 respect to sources of income, diversification of
assets, and distributions to shareholders. Each Fund does not pay federal income
or excise taxes to the
<PAGE>
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, distributions from a Fund's net investment
income, any excess of its net short-term capital gain over its net long-term
capital loss and certain net realized foreign currency gains are taxable to
shareholders 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.
Distributions from any excess of a Fund's net long-term capital gain over its
net short-term capital loss that the Fund designates as "capital gain dividends"
are 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 treated as ordinary income or long-term
capital gains that are declared by a Fund in October, November or December 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.
Redemptions (including exchanges) of shares of a Fund are taxable
transactions and may in particular cases be subject to wash sale or other
special tax rules.
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 regarding the prior
calendar year's distributions and redemptions (including exchanges).
Shareholders should consult their own tax advisers with respect to the tax
status of distributions from the 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 at the rate of 31% on taxable distributions made by a Fund and on
the proceeds of redemptions (including exchanges) of shares of the
<PAGE>
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.
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 any other Wright
EquiFund, or shares of the other funds in The Wright EquiFund Equity Trust or
Standard Shares of The Wright Managed Equity Trust and, The Wright Managed
Income Trust at net asset value at the time of the exchange.
This exchange privilege 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.
The Transfer Agent 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 the Transfer Agent. All
shareholders are automatically eligible for the telephone exchange privilege. To
effect such exchanges, call the Transfer Agent at (800) 555-0644 (this is a
recorded line), 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
Redeem or Sell Shares -- By Telephone" for a description of the procedures the
Funds employ to ensure that instructions communicated by telephone are genuine.
Neither the Trust, the Funds, the Principal Underwriter nor the Transfer Agent
will be responsible for the authenticity of exchange instructions received by
telephone, provided that reasonable procedures to confirm that instructions
communicated are genuine have been followed. 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.
<PAGE>
Generally, shareholders will be limited to four Telephone Exchange
round-trips during each year following the initial investment 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 who identify themselves or are identified
by the Trust as "market-timers." The Trust identifies as market-timers on its
account records those investors who repeatedly make exchanges within a short
period (even if less than four round-trips per year) while retaining Fund shares
for very short holding periods (often less than a month). The Trust does not
automatically redeem shares that are the subject of a rejected exchange request.
Such shares will only be redeemed if the Trust is specifically authorized to do
so by the shareholder.
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 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 next determined net asset value
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. Although each Fund normally expects to make payment in cash for
redeemed shares, the Trust, subject to compliance with applicable regulations,
has reserved the right to pay the redemption price of shares of a Fund, either
totally or partially, by a distribution in kind of readily marketable
securities. The securities so distributed would be valued pursuant to the Fund's
valuation procedures. If a shareholder received a distribution in kind, the
shareholder could incur brokerage or other charges in converting the securities
to cash. For federal and state income tax purposes, a redemption of shares is a
taxable transaction.
<PAGE>
Through Authorized Dealers: Shareholders using Authorized Dealers may
redeem shares through such Dealers.
By Telephone: All shareholders are automatically eligible for the telephone
redemption privilege, unless the account application indicates otherwise.
Shareholders redeeming $50,000 or less may effect their redemption by calling
the Funds' Transfer Agent at (800) 555-0644, (9:00 a.m. to 4:00 p.m. Eastern
time) if the redemption involves shares on deposit with the Transfer Agent.
Payment will be made by check to the address of record. Telephone instructions
will be tape recorded. Shareholders redeeming more than $50,000 may effect a
redemption by calling the Funds' Order Department at (800) 225-6265, ext. 7750
(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. At such times, a shareholder may
redeem shares by mail or by faxing a redemption request to (617) 348-2932.
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. Neither the Trust, the Funds, the Principal
Underwriter nor the Transfer Agent will be responsible for the authenticity of
redemption instructions received by telephone, provided that reasonable
procedures to confirm that instructions communicated are genuine have been
followed.
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, P.O. Box
5123, Westborough, Massachusetts 01581-5123. 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 the Transfer Agent. 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.
Redemption Fee: For shares redeemed within 30 days of purchase, a
redemption fee of 1 1/2% of
<PAGE>
the redemption proceeds will be assessed. This redemption fee will be
retained by the respective Fund. The redemption fee is to help defray costs
associated with redemptions and is not used for sales-related expenses. No
redemption fee will be payable or imposed with respect to shares of the Funds
purchased by an investor making an investment through an investment adviser,
financial planner, broker or other intermediary that charges a fee for its
services and has entered into an agreement with the Funds or their Principal
Underwriter. For the fiscal year ended December 31, 1996, each Fund received the
following redemption fees from shareholders: Belgium/Luxembourg ($4,025);
Britain ($3,038); Germany ($1,373); Hong Kong ($62,599); Japan ($15,119); Mexico
($103,221); Netherlands ($11,857); Nordic ($9,789); and Switzerland($3,053),
respectively.
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
<PAGE>
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.
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 nineteen series. Each Fund's activities are
supervised by the Trustees of the Trust.
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. There are no annual meetings of shareholders, but special
meetings may be held as required by law to elect Trustees and consider certain
other matters. 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, 1997, Resources Trust Co.,
P.O. Box 3865, Englewood, CO was the record holder of 90.3%, 90.6%, 29.4%,
52.2%, 38.8% and 74.2%, respectively, of the outstanding shares of the
Belgium/Luxembourg, Germany, Hong Kong, Japan, 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 38.4%, 26.9%, 53.2% and
33.6%, respectively, of the outstanding shares of the Hong Kong, Mexico,
Netherlands and Nordic 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 to do so 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 and the small account redemption policy 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 A 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, Inc.,
provides comprehensive and reliable investment information. Wright Investors'
Service, Inc. 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
unification
<PAGE>
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 krone, 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. The ECU will be suspended by the EMU (European
Monetary Unit) when the provisions of the 1991 Maastricht are implemented.
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
<PAGE>
towards "privatization" of government owned and operated companies.
Examples include the water companies 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.
The 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. (Austria,
Portugal, Sweden and Finland have since become members of the European Union.)
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 generally 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, is
being 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 1996, FT
Actuaries/Goldman Sachs calculated the world equity market at some U.S. $13,349
billion. This market is dominated by the U.S. ($5,926 billion) and Japan ($2,386
billion). Other nations of significant size include Switzerland ($340 billion),
Italy ($170 billion), France ($441 billion), Canada ($315 billion), Germany
($495 billion), and Great Britain ($1382 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 2,400 securities from 27 nations,
posted a total return of 13.2% in 1996 in terms of U.S. dollars. The
FT-Actuaries World Index showed a total return of 19.6% for 1995 following a
5.8% advance in 1994. Following is a table summarizing the market capital, total
return performance, price/earnings ratios and normal settlement time.
<PAGE>
<TABLE>
<CAPTION>
1994 1995 1996 1996
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 201.0 6.5% 15.2% 21.8 17.5 Five business days
Austria 20.5 -0.2% -3.3% 10.8 15.5 Second Monday after trading week
Belgium 90.5 7.8% 29.1% 13.2 18.3 Cash market-- same day
Canada 314.9 -2.2% 17.7% 30.8 19.9 Five business days
Denmark 44.6 3.1% 16.4% 24.1 15.8 Three business days
Finland 40.1 52.1% 2.0% 34.5 17.7 Five business days
France 441.3 -4.2% 13.2% 23.0 57.5 Usually last business day of month
Germany 495.2 4.0% 16.5% 18.2 27.4 Two business days
Great Britain 1,382.9 -1.2% 23.3% 28.0 15.7 Two-week rolling average
Hong Kong 299.3 -31.3% 23.6% 35.2 16.2 Next business day
Ireland 25.3 15.1% 28.3% 33.2 10.8 Bi-weekly
Italy 170.1 11.6% -0.4% 15.8 20.6 Usually last business dayof month
Japan 2,386.9 21.5% -0.4% -16.1 119.7 Three business days
Luxembourg -- -- -- -- -- --
Malaysia 148.8 -17.7% 3.0% 26.2 24.8 See note (3)
Mexico 56.8 -40.0% -25.5% 19.4 17.3 Two business days, see note (4)
Netherlands 290.6 12.6% 30.2% 27.2 17.9 Within 10 days
New Zealand 24.5 7.9% 18.4% 20.3 15.0 Five business days
Norway 30.6 20.7% 10.8% 30.6 12.5 Seven business days
Singapore 66.6 3.2% 11.1% 4.5 24.4 Tuesday of the following week
Spain 145.5 -1.4% 30.5% 37.7 16.3 Wednesday of the following week
Sweden 176.8 19.5% 37.7% 38.3 12.7 Five business days
Switzerland 340.1 5.0% 45.4% 2.7 22.3 Three business days
United States 5,926.2 1.7% 37.3% 22.8 20.3 Five business days
- ----------------------------------------------------------------------------------------------------------------------------------
(1) Billions of U.S. $. Estimated by FT/S&P Actuaries World IndicesTM/SM
include approximately 2,400 securities in 27 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 1996. FT/S&P
Actuaries World IndicesTM/SM include approximately 2,400 securities in 27
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.
</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 1996: AUD 1.26 = $1 U.S). The Gross Domestic Product was U.S. $342
billion in 1995, or about $19,000 per capita. The 1995 current account trade
balance was negative $4 billion. According to the OECD, real GDP growth was
around 4.1% in 1996 and should average around 3.0% per year in 1997-98.
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 eight 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 1996: ATS 10.91 = $1 U.S.). The Gross
Domestic Product was $182 billion in 1995, or about $21,000 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 1995 current account trade balance was -$5.4 billion. Austria joined
the European Union in 1994.
The relatively small size of Austria's securities markets may make it
difficult for the Wright EquiFund-Austria to effect purchases or sales of
portfolio securities without causing an increase or
<PAGE>
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 1996: BEF 31.71 = $1 U.S.). The Gross
Domestic Product was $239 billion in 1995, or about $24,000 per capita. The 1995
current account trade balance was positive $8.7 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 1996: CAD 1.37 = $1 U.S.). The Gross Domestic Product was $528 billion
in 1995, or about $18,000 per capita. The 1995 current account trade balance was
negative $8.7 billion. Canada is a participant in the North American Free Trade
Agreement (NAFTA) along with the U.S.A. and Mexico.
<PAGE>
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 1996: DKK 5.92 = $1
U.S.). The Gross Domestic Product was $159 billion in 1995, or around $30,000
per capita. The 1995 current account trade balance was $1.5 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
1996: FIM 4.61 = $1 U.S.). The Gross Domestic Product was $14 billion in 1995,
or about $22,000 per capita. The 1995 current account trade balance was $5.3
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 1996: FRF 5.19 = $1 U.S.). The Gross Domestic Product was $1,404
billion in 1995, or around $24,000 per capita. The 1995 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%.
<PAGE>
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 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 1996: DEM 1.54 = $1 U.S.). The Gross Domestic Product
for Western Germany was $2,032 billion in 1995, or about $25,000 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 over 600
companies are listed for trading on stock exchanges, but perhaps only a fraction
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
1996: GBP 1 = $1.55 U.S.) The Gross Domestic Product was $905 billion in 1995,
or about $15,000 per capita. The 1995 current account trade balance was negative
$6.2 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
<PAGE>
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%.
HONG KONG, a Crown Colony until July 1, 1997, 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 1996: HKD 7.73 = $1 U.S.).
The governments of the United Kingdom and the Peoples Republic of China
(PRC) have 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,
<PAGE>
brewing, machinery, tourism and services. The national currency of Ireland
is the Pound (Punt), which at December 31, 1996, was valued at IP 0.60 = $1 U.S.
Gross Domestic Product was U.S. $56 billion in 1995, or about $16,000 per
capita. The current account balance was a $3.4 billion surplus in 1995. The OECD
estimates that real GDP expanded 7.0% during 1995 and forecasts growth of around
6.5% in 1997 and 1998. No withholding tax is deducted from dividend payments
made by Irish companies. Ireland is a member of the European Union.
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 1996: JPY 115.85 = $1 U.S.). The Gross Domestic Product was $4,400
billion in 1995, or about $35,000 per capita. The 1995 current account trade
balance was positive $111 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 1996: LUF 31.71 = $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.
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,
<PAGE>
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 = $1 U.S. but was devalued in 1994 so that at December 31,
1994, the value was 5.33 to the U.S. dollar. It further depreciated in December
1995 and in December 1996 was valued at 7.89/$. Gross Domestic Product was U.S.
$98 billion in 1995, or $10,839 per capita. The current account balance was
U.S.-$654 million in deficit for 1995. The OECD estimates that real GDP grew
4.0% during 1996 and forecasts growth rates of about 4.5% in 1997 and in 1998.
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 1996:
NLG 1.74 = $1 U.S.). The Gross Domestic Product was $353 billion in 1995, or
about $23,000 per capita. The 1995 current account trade balance was positive
$18 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
<PAGE>
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. Food processing, fishing, textiles
(especially wool-related), forest products and machinery are the chief
industries. The currency is the New Zealand Dollar (December 1996: NZD 1.42 = $1
U.S.). The Gross Domestic Product was $54 billion in 1995, or $15,000 per
capita. The current account trade deficit was $4 billion in 1995.
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 1996: NOK 6.44 = $1 U.S.). The Gross Domestic Product
was $135 billion in 1995, or about $31,000 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
1996: SEK 6.69 = $1 U.S.), The Gross Domestic Product was $205 billion in 1995,
or about $23,000 per capita. The 1995 current account trade balance was $4.6
billion. 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
<PAGE>
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 seven million. Switzerland has four national languages: German,
French, Italian, and Romansh. Romansh 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
1996: CHF 1.34 - $1 U.S.). The Gross Domestic Product was $275 billion in 1995,
or about $39,000 per capita. The 1995 current account trade balance was positive
$21.6 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 263 million people located in North America. The
U.S. economy is the world's largest, with 1995 Gross Domestic Product estimated
at $7.3 trillion or $27,600 per capita. The nation's current account deficit was
$148 billion for 1995. Real GDP advanced by about 2.5% during 1996 and according
to the OECD, the growth rate is likely to be around 2.2% in 1997 and about 2.0%
in 1998. There is no withholding on dividends paid to the Fund.
<PAGE>
The Wright
EquiFund
Equity Trust
PROSPECTUS
May 1, 1997
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
P.O. Box 5123
Westborough, Massachusetts 01581-5123
Auditors
Deloitte & Touche LLP
125 Summer Street
Boston Massachusetts 02110
24 Federal Street
Boston, Massachusetts 02110
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
Prospectus
May 1, 1997
<PAGE>
Part B -- Information Required In A Statement of Additional Information
-------------------------------------------------------------------------
STATEMENT OF
ADDITIONAL INFORMATION
May 1, 1997
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, 1997,
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................ 13
Custodian...................................................... 16
Independent Certified Public Accountants....................... 16
Brokerage Allocation........................................... 17
Principal Underwriter.......................................... 18
Performance Information........................................ 19
Taxes.......................................................... 21
Financial Statements........................................... 22
Appendix A..................................................... A1-A7
<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. The Investment Adviser does not consider this risk to be material.
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 15,000 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.
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
<PAGE>
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
Each Fund may invest up to 20% of its net assets in U.S. Government
securities, repurchase agreements, certificates of deposit, bankers'
acceptances, fixed time deposits, commercial paper, finance company paper, and
other short-term debt securities. The Fund may hold cash or invest more than 20%
of its net assets in these securities for temporary, defensive purposes.
U.S. Government, Agency and Instrumentality Securities -- U.S. Government
securities 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 U.S. Government securities
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.
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.
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.
<PAGE>
Restricted Securities -- Securities that are not freely tradeable or which
are subject to restrictions on sale under the Securities Act of 1933 are
considered restricted. Such securities are illiquid and may be difficult to
properly value. Each Fund's holdings of illiquid securities may not exceed 15%
of its net assets. Illiquid securities include securities legally restricted as
to resale. Securities eligible for resale pursuant to Rule 144A under the
Securities Act of 1933 may, however, be treated as liquid by the Investment
Adviser pursuant to procedures adopted by the Trustees, which require
consideration of factors such as trading activity, availability of market
quotations and number of dealers willing to purchase the security. Moreover,
investments in Rule 144A securities may increase the level of Fund illiquidity
to the extent qualified institutional buyers become uninterested in purchasing
such securities.
Convertible Securities -- Each Fund may from time to time invest up to 5%
of its total assets in debt securities and preferred stocks which are
convertible into, or carry the right to purchase, common stock or other equity
securities. The debt security or preferred stock may itself be convertible into
or exchangeable for equity securities, or the purchase right may be evidenced by
warrants attached to the security or acquired as part of a unit with the
security. Convertible securities may be purchased for their appreciation
potential when they yield more than the underlying securities at the time of
purchase or when they are considered to present less risk of principal loss than
the underlying securities. Generally speaking, the interest or dividend yield of
a convertible security is somewhat less than that of a non-convertible security
of similar quality issued by the same company.
Warrants and Rights -- Each Fund may purchase warrants and rights, but does
not intend to invest more than 5% of its net assets in warrants and rights
(other than those that have been acquired in units or attached to other
securities). Warrants and rights are options to purchase equity securities at a
specific price valid for a specific period of time. They do not represent
ownership of the securities, but only the right to buy them. The prices of
warrants and rights do not necessarily move parallel to the prices of the
underlying securities. Warrants and rights may become valueless if not sold or
exercised prior to their expiration.
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, other than Mexico Fund, 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.
<PAGE>
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 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. 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 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.
<PAGE>
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 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
transactions in such contracts to those 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 Code 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.
<PAGE>
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. As a matter of fundamental
investment policy, each Fund may not:
(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;
<PAGE>
(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;
(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;
<PAGE>
(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
(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 will amend their Prospectus 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.)
(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;
<PAGE>
(h) Purchase securities on margin or make short sales except short
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 (54), 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. (70), Vice President, Secretary and Trustee*
Retired Vice President, Chairman of the Management Committee and Chief Legal
Officer of Eaton Vance, EVC, BMR and EV and a Director of EVC and EV; Director
of Wright and Winthrop since February, 1997.
Address: 92 Reservoir Avenue, Chestnut Hill, MA 02167
A.M. MOODY III (60), 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 (86), 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 (73), 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 (78), 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
RICHARD E. TABER (48), Trustee
Chairman and Chief Executive Officer of First County Bank, Stamford, CT
(1989-present). Mr.Taber was appointed as a Trustee of the Trust on
March 18, 1997.
Address: 117 Prospect Street, Stamford, CT 06901
RAYMOND VAN HOUTTE (72), 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 (58), 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
<PAGE>
JAMES L. O'CONNOR (52), 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 (61), 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 (34), 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).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 (39), Assistant Secretary
Vice President of Eaton Vance, BMR and EV since February 1993; formerly,
associate attorney at Dechert, Price & Rhoads. 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. (45), 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, The Wright Managed Blue
Chip Series Trust (except Mr. Miles), Catholic Values Investment Trust and The
Wright Blue Chip Master Portfolio Trust. The fees and expenses of those Trustees
(Messrs. Miles, Emmet, Pierce, Taber and Van Houtte) who are not "interested
persons" of the Trust and of Mr. Brigham are paid by the Funds and the other
series of the Trust. They also receive additional payments from other investment
companies for which Wright provides investment advisory services. The Trustees
who are employees of Wright receive no compensation from the Trust. The Trust
does not have a retirement plan for its Trustees. Beginning in 1997, Mr. Brigham
will receive compensation of $1,250 from the Trust and $6,000 in total
compensation from the complex. Mr. Taber, appointed a Trustee on March 18, 1997,
will receive compensation of $1,250 from the Trust and $5,000 in total
compensation from the complex. For Trustee compensation from the Trust for the
fiscal year ended December 31, 1996 and for the total compensation paid to the
Trustees from the Wright Fund complex for the fiscal year ended December 31,
1996, see the following table.
COMPENSATION TABLE
Registrant -- The Wright EquiFund Equity Trust
<TABLE>
<CAPTION>
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 $3,750
Lloyd F. Pierce $1,250 None None $5,000
George R. Prefer(2) $ 750 None None $3,000
Raymond Van Houtte $1,250 None None $5,000
(1) Total compensation paid is from the The Wright EquiFund Equity Trust
(19 Funds) and the other funds in the Wright Fund complex (17 funds) for a total
of 35 Funds.
(2) Mr. Prefer resigned as a Trustee on September 18, 1996.
</TABLE>
<PAGE>
Messrs. Miles, Emmet, Pierce 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, 1997, 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.
As of the same date, 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>
<CAPTION>
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
- ------------------------------------------------------------------------------------------------------------
Investors Fiduciary Tr. Co. 7.6%
FBO Centurion Trust Co.
127 W. 10th St., Kansas City, MO 64105
- ------------------------------------------------------------------------------------------------------------
Jupiter & Co. 6.0%
P.O. Box 1537, Boston, MA 02205-1537
- ------------------------------------------------------------------------------------------------------------
NFSC FEBO 5.7%
FMT Co. Cust. IRA Rollover
FBO Herbert L. Marsh
404 Stanton Rd., Quarryville, PA 17566
- ------------------------------------------------------------------------------------------------------------
Resources Trust Co. 90.3% 90.6% 29.4% 52.2% 33.8% 74.2%
P.O. Box 3865, Englewood, CO 80155
- ------------------------------------------------------------------------------------------------------------
Charles Schwab & Co. Inc. 56.9% 38.4% 22.1% 26.9% 53.2% 33.6% 11.6%
Attn: Mutual Funds, 101 Montgomery St.
San Francisco, CA 94104
- ------------------------------------------------------------------------------------------------------------
Sir John Templeton KT &
First Trust Bank Limited TTEES 24.0%
u/a dtd #1987-(1) 9/3/87
Feeder Trust No. 1, P.O. Box N-7776
Lyford Cay, Nassau, Bahamas
- -------------------------------------------------------------------------------------------------------------
</TABLE>
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.
<PAGE>
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, 1996 and the advisory fee earned from
each such Fund during the fiscal years ended December 31, 1996, 1995 and 1994.
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>
<CAPTION>
Aggregate Fee Earned for Fee Earned for Fee Earned for
FUNDS Net Assets at 12/31/96 Fiscal Year Ended 12/31/96 Fiscal Year Ended 12/31/95 Fiscal Year Ended 12/31/94
<S> <C> <C> <C> <C>
Belgium/Luxembourg(1) $19,185,149 $131,163 $103,043 $55,703
Britain(2) 3,808,725 53,712(c) 83,324 --
Germany(3) 23,137,631 150,387 82,313 --
Hong Kong 34,366,248 210,176 241,428 142,606
Japan(4) 17,040,939 144,668 120,678 50,253
Mexico(5) 22,027,664 231,258 167,535 63,619
Netherlands 7,566,028 52,195(d) 49,092(a) 39,105
Nordic(4) 7,030,976 37,679(e) 27,207(b) 50,321
Switzerland(4) 6,108,503 55,526(f) 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 $2,868; (b): 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; (c) To enhance the net income
of the Britain Fund, Wright made a reduction of its fee in the amount of $2,105
and was allocated $2,410 of expenses related to the operation of the Fund; (d):
To enhance the net income of the Netherlands Fund, Wright made a reduction of
its fee in the amount of $4,216 and was allocated $1,925 of expenses related to
the operation of the Fund; (e): To enhance the net income of the Nordic Fund,
Wright made a reduction of its fee in the amount of $14,494 and was allocated
$1,725 of expenses related to the operation of the Fund; and (f): To enhance the
net income of the Switzerland Fund, Wright made a reduction of its fee in the
amount of $3,944 and was allocated $4,530 of expenses related to the operation
of the Fund.
</FN>
</TABLE>
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, 1996 for the fiscal years ended December 31, 1996, 1995 and
1994.
<TABLE>
<CAPTION>
Fee Earned for the Fee Earned for the Fee Earned for the
FUNDS Fiscal Year Ended 12/31/96 Fiscal Year Ended 12/31/95 Fiscal Year Ended 12/31/94
<S> <C> <C> <C>
Belgium/Luxembourg(1) $17,488 $13,739 $ 7,427
Britain(2) 7,162 11,110 --
Germany(3) 20,052 10,975 --
Hong Kong 28,023 32,190 23,531
Japan(4) 19,289 16,090 6,700
Mexico(5) 30,835 22,338 8,483
Netherlands 6,959 6,544 7,215
Nordic(4) 5,024 3,628 6,709
Switzerland(4) 7,403 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 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, Mr. Gardner is
vice chairman and Mr. Hawkes 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, 1997, the Voting
Trustees of which are Messrs. Clay, Gardner, Hawkes, Rowland and Thomas E.
Faust, Jr. 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, or officers and Directors of EVC and EV. As of March 31,
1997, Messrs. Clay, Gardner and Hawkes each owned 24% of such voting trust
receipts, and Messrs. Rowland and Faust owned 15% and 13%, respectively, of such
voting trust receipts. 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, 1998. 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,
1998, 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, 1996, 1995 and 1994, the Funds
that were offering their shares during such periods paid the following amounts
on brokerage commissions:
<TABLE>
<CAPTION>
1996 1995 1994
-----------------------------------
<S> <C> <C> <C>
Belgium/Luxembourg(1)....................... $ 39,647 $ 65,469 $ 50,547
Britain(2).................................. 76,550 130,965 --
Germany(3).................................. 104,972 77,270 --
Hong Kong .................................. 151,639 366,376 403,603
Japan(4).................................... 135,292 270,491 89,821
Mexico(5)................................... 88,719 112,927 82,118
Netherlands................................. 62,798 57,747 54,183
Nordic(4)................................... 34,683 51,359 49,398
Switzerland(4).............................. 43,624 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") as described in the
Prospectus on behalf of the Funds in accordance with Rule 12b-1 under the 1940
Act and the Rules of the NASD.
The Trust has entered into a distribution contract on behalf of the Funds
with WISDI, providing for WISDI to act as a separate distributor of each Fund's
shares.
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
<PAGE>
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, 1996.
<TABLE>
<CAPTION>
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 $43,721 -- $43,721 0.25%
Britain(1) 17,905 $ 702 17,203 0.24%
Germany(2) 50,129 -- 50,129 0.25%
Hong Kong 70,058 -- 70,058 0.25%
Japan 48,541 -- 48,541 0.25%
Mexico 77,086 -- 77,086 0.25%
Netherlands 17,348 5,104 12,244 0.18%
Nordic 12,624 12,624 -- 0.00%
Switzerland 18,613 1,315 17,298 0.23%
(1) Start of business, April 20, 1995; (2) Start of business, April 19, 1995.
</TABLE>
For the fiscal year ended December 31, 1996, 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 1996
<TABLE>
<CAPTION>
Printing & Mailing Travel & Commissions & Administration
FUNDS Promotional Prospectuses Entertainment Service Fees and Other TOTAL
<S> <C> <C> <C> <C> <C> <C>
Belgium/Luxembourg $ 3,181 $ 1,227 $ 2,243 $ 34,187 $ 2,884 $ 43,722
Britain(1) 3,367 483 882 9,331 3,140 17,203
Germany(2) 5,553 1,407 2,571 38,597 2,002 50,130
Hong Kong 5,928 1,966 3,594 56,142 2,429 70,059
Japan 465 1,362 390 44,744 1,580 48,541
Mexico 529 2,163 2,954 67,960 3,479 77,085
Netherlands 31 44 28 16,783 (4,642) 12,244
Nordic -- -- -- 7,452 (7,452)
Switzerland 402 485 887 14,935 589 17,298
(1): Start of business, April 20, 1995; (2) Start of business, April 19, 1995.
</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.
<PAGE>
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.
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, 1996:
<TABLE>
<CAPTION>
Inception
FUNDS One Year Three Years Five Years Life of Fund Date of Fund
----- ------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Belgium/Luxembourg 21.0% -- -- 15.0% 2/15/94
Britain(1) 26.7% -- -- 22.3% 4/20/95
Germany 15.0% -- -- 4.0% 4/19/95
Hong Kong(2) 28.0% (6.4%) 11.9% 10.8% 6/28/90
Japan (9.1%) -- -- (7.1%) 2/14/94
Mexico 27.5% -- -- (19.8%) 8/02/94
Netherlands(3) 36.6% 21.8% 14.7% 10.1% 6/28/90
Nordic(4) 32.1% -- -- 16.7% 2/14/94
Switzerland(5) 0.5% -- -- 4.3% 2/14/94
<FN>
(1) If a portion of the Britain Fund's expenses had not been subsidized for the
year ended December 31, 1996, the Fund would have had lower returns; (2) 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; (3) If a
portion of the Netherlands Fund's expenses had not been subsidized for the two
years ended Decemer 31, 1996 and the four years ended December 31, 1993, the
Fund would have had lower returns; (4) If a portion of the Nordic Fund's
expenses had not been subsidized for the two years ended Decemer 31, 1996, the
Fund would have had lower returns; (5) If a portion of the Switzerland Fund's
expenses had not been subsidized for the three years ended December 31, 1996,
the Fund would have had lower returns.
</FN>
</TABLE>
<PAGE>
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 gross
income for the taxable year 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 gross income for the taxable year may be
derived from gross gains from the sale or other 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 forward contracts to the extent gains relating to such
activities are considered not directly related to the Fund's principal business
of investing in securities.
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 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 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 or other positions 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.
In order to avoid federal excise tax, each Fund must distribute (or be
deemed to have distributed) by December 31 of each 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.
Special tax rules apply to IRA and other retirement plan 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.
Redemptions (including exchanges) and other dispositions of Fund shares in
transactions that are treated as sales for tax purposes will generally result in
the recognition of taxable gain or loss by
<PAGE>
shareholders that are subject to tax. Shareholders should consult their own
tax advisers with reference to their individual circumstances to determine
whether any particular redemption, exchange or other disposition of Fund shares
is properly treated as a sale for tax purposes, as this discussion assumes. Any
loss realized upon the redemption, exchange or other sale 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 long-term capital gains
designated as capital gain dividends with respect to such shares. All or a
portion of a loss realized upon the redemption, exchange or other sale of Fund
shares maybe disallowed under "wash sale" rules to the extent shares of the same
Fund are purchased beginning 30 days before and ending 30 days after the date of
such redemption, exchange or other sale.
Capital loss carryforwards will reduce the applicable Fund's taxable income
arising from future net realized capital gains, if any, to the extent they are
permitted to be used under the Code and applicable Treasury regulations prior to
their expiration dates, and thus will reduce the amounts of the future
distributions to shareholders that would otherwise be necessary in order to
relieve that Fund of liability for federal income tax.
As of December 31, 1996, the Funds, for federal income tax purposes, had
capital loss carryovers expiring as follows:
Dec. Germany Hong Kong Mexico Japan
-----------------------------------------------------------------------
2002 -- $ 666,114 -- --
2003 $ 27,166 4,577,781 $5,516,594 $1,460,778
2004 740,186 -- -- --
-----------------------------------------------------------------------
FINANCIAL STATEMENTS
The audited financial statements of, and the independent auditors' report
for the Funds, appear in the Funds' most recent annual report to shareholders,
and are incorporated by reference into this Statement of Additional Information.
A copy of the Funds' most recent Annual Report accompanies this Statement of
Additional Information.
Registrant incorporates by reference the audited financial information for
the Funds for the fiscal year ended December 31, 1996 as previously filed
electronically with the Securities and Exchange Commission (Accession Number
0000853255-97-000002).
<PAGE>
APPENDIX A
=============================================================================
MAJOR ECONOMIC AND FINANCIAL INDICATORS
OF THE NATIONS IN WHICH THE FUNDS MAY INVEST
The following information supplements and should be used in
connection with the section of the Funds' Prospectus entitled
"Appendix -- Information Concerning The Nations In Which The
Funds May Invest."
<PAGE>
MAJOR ECONOMIC AND FINANCIAL INDICATORS*
--------------------------------------------
<TABLE>
<CAPTION>
Avg. Annual Rates ending 1995
1995 1994 1993 1992 1991 2 Years 3 Years 5 Years
--------------------------------------------------------------------------------------
AUSTRALIA
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Gross Domestic Product:
Nominal 6.0% 6.3% 5.4% 4.2% 0.7% 6.1% 5.9% 4.5%
Real 3.2% 4.9% 4.0% 2.9% -1.6% 4.0% 4.0% 2.7%
Inflation (CPI) 4.7% 1.9% 1.8% 1.0% 3.2% 3.3% 2.8% 2.5%
Trade Balance (A$ mil) -4014 -3279 -29 1640 3528 -3647 -2441 -431
Current Account Balance (A$ mil) -19184 -17346 -10510 -11542 -11420 -18265 -15680 -14000
Interest Rates:
Short Term (T-Bills) 7.6% 5.7% 5.0% 6.3% 10.0% 6.7% 6.1% 6.9%
Long Term (Govt 20 yrs) 9.2% 9.0% 7.3% 9.2% 10.7% 9.1% 8.5% 9.1%
Exchange Rates US$/A$ 0.7450 0.7768 0.6771 0.6886 0.7598 0.7609 0.7330 0.7295
- ----------------------------------------------------------------------------------------------------------------------------------
AUSTRIA
Gross Domestic Product:
Nominal 4.0% 6.5% 3.8% 6.3% 7.0% 5.2% 4.7% 5.5%
Real 1.8% 3.0% 0.4% 2.0% 2.8% 2.4% 1.7% 2.0%
Inflation (CPI) 2.3% 3.0% 3.6% 4.1% 3.3% 2.6% 3.0% 3.2%
Trade Balance (Schilling mil) -5446 -8727 -7267 -8403 -8560 -7087 -7147 -7681
Current Account Balance (Schilling mil) -4769 -2498 -2314 -2369 -1830 -3634 -3194 -2756
Interest Rates:
Short Term (Deposit rate) 2.2% 2.3% 3.0% 3.7% 3.8% 2.3% 2.5% 3.0%
Long Term (Govt Bonds) 6.5% 6.7% 6.6% 8.3% 8.6% 6.6% 6.6% 7.3%
Exchange Rates US$/Schilling 0.0991 0.0901 0.0824 0.0881 0.0936 0.0946 0.0905 0.0906
------------------------------------------------------------------------------------------------------------------------------
BELGIUM
Gross National Product:
Nominal 3.4% 4.9% 2.4% 5.4% 4.7% 4.1% 3.6% 4.2%
Real 3.3% 2.2% -1.6% 1.8% 2.2% 2.8% 1.3% 1.6%
Inflation (CPI) 1.4% 2.4% 2.7% 2.4% 3.2% 1.9% 2.2% 2.4%
Trade Balance (B.Franc mil) 8729 6901 5780 3700 1999 7815 7137 5422
Current Account Balance (B.Franc mil) 14253 12569 11237 6650 4746 13411 12686 9891
Interest Rates:
Short Term (T-Bills) 4.8% 5.7% 8.2% 9.4% 9.4% 5.3% 6.2% 7.5%
Long Term (Govt Bonds) 7.3% 7.8% 7.2% 8.6% 9.3% 7.6% 7.4% 8.0%
Exchange Rates US$/Franc 0.0340 0.0314 0.0277 0.0301 0.0320 0.0327 0.0310 0.0310
----------------------------------------------------------------------------------------------------------------------------
CANADA
Gross Domestic Product:
Nominal 3.9% 4.8% 3.3% 2.0% 1.0% 4.4% 4.0% 3.0%
Real 2.3% 4.1% 2.2% 0.8% -1.8% 3.2% 2.9% 1.5%
Inflation (CPI) 2.2% 0.2% 1.9% 1.5% 5.6% 1.2% 1.4% 2.3%
Trade Balance (C$ mil) 22341 12309 7927 5699 3871 17325 14192 10429
Current Account Balance (C$ mil) -8693 -17278 -23391 -22592 -24571 -12986 -16454 -19305
Interest Rates:
Short Term (T-Bills) 6.9% 5.5% 4.8% 6.6% 8.7% 6.2% 5.8% 6.5%
Long Term (Govt Bonds) 8.3% 8.6% 7.9% 8.8% 9.8% 8.5% 8.3% 8.7%
Exchange Rates US$/C$ 0.7325 0.7129 0.7553 0.7867 0.8654 0.7227 0.7335 0.7705
- --------------------------------------------------------------------------------------------------------------------------
<PAGE>
DENMARK
Gross Domestic Product:
Nominal 4.5% 6.1% 2.2% 3.4% 3.6% 5.3% 4.3% 4.0%
Real 2.8% 4.4% 1.5% 0.2% 1.3% 3.6% 2.9% 2.0%
Inflation (CPI) 2.0% 2.0% 1.3% 2.1% 2.4% 2.0% 1.8% 2.0%
Trade Balance (Kroner mil) 6825 7469 7998 7204 4748 7147 7431 6849
Current Account Balance (Kroner mil) 1542 3158 4711 4268 1983 2350 3137 3132
Interest Rates:
Short Term (Money Market rate) 6.2% 6.3% 11.5% 11.4% 9.8% 6.2% 8.0% 9.0%
Long Term (Govt Bonds) 7.6% 7.4% 7.1% 9.5% 9.6% 7.5% 7.4% 8.2%
Exchange Rates US$/Kroner 0.1803 0.1644 0.1476 0.1598 0.1691 0.1724 0.1641 0.1643
- ---------------------------------------------------------------------------------------------------------------------------
FINLAND
Gros Domestic Product:
Nominal 7.0% 5.7% 1.2% -0.9% -6.7% 6.4% 4.6% 1.1%
Real 4.2% 4.4% -1.2% -3.6% -7.1% 4.3% 2.5% -0.7%
Inflation (CPI) 0.9% 1.1% 2.2% 2.6% 4.1% 1.0% 1.4% 2.2%
Trade Balance (Markka mil) 12367 7490 6261 3777 2231 9929 8706 6425
Current Account Balance (Markka mil) 5333 1273 -1123 -4945 -6696 3303 1828 -1232
Interest Rates:
Short Term (Deposit rate) 3.2% 3.3% 4.8% 7.5% 7.5% 3.2% 3.7% 5.2%
Exchange Rates US$/Markka 0.2294 0.2108 0.1729 0.1907 0.2420 0.2201 0.2044 0.2091
------------------------------------------------------------------------------------------------------------------------
FRANCE
Gross Domestic Product:
Nominal 3.9% 4.4% 1.1% 3.3% 4.1% 4.2% 3.1% 3.4%
Real 2.2% 2.8% -1.3% 1.2% 0.8% 2.5% 1.2% 1.1%
Inflation (CPI) 1.7% 1.7% 2.1% 2.4% 3.2% 1.7% 1.8% 2.2%
Trade Balance (F.Franc mil) 11175 7049 7516 2371 -9714 9112 8580 3679
Current Account Balance (F.Franc mil) 16443 7033 8990 3893 -6518 11738 10822 5968
Interest Rates:
Short Term (Deposit rate) 6.4% 5.7% 8.8% 10.4% 9.5% 6.0% 6.9% 8.1%
Long Term (Govt Bonds) 7.6% 7.4% 6.9% 8.6% 9.1% 7.5% 7.3% 7.9%
Exchange Rates US$/Franc 0.2041 0.1871 0.1696 0.1816 0.1931 0.1956 0.1869 0.1871
- ---------------------------------------------------------------------------------------------------------------------------
GERMANY
Gross National Product:
Nominal 4.2% 5.2% 2.6% 7.8% 17.5% 4.7% 4.0% 7.3%
Real 1.9% 2.9% -1.2% 2.2% 13.2% 2.4% 1.2% 3.7%
Inflation (CPI) 1.9% 2.7% 4.4% 5.1% 3.6% 2.3% 3.0% 3.5%
Trade Balance (DM bil) 66 52 42 29 20 59 53 42
Current Account Balance (DM bil) -21 -20 -13 -19 -18 -21 -18 -18
Interest Rates:
Short Term (T-Bills) 4.4% 5.1% 6.2% 8.3% 8.3% 4.7% 5.2% 6.5%
Long Term (Govt Bonds) 6.5% 6.7% 6.3% 8.0% 8.6% 6.6% 6.5% 7.2%
Exchange Rates US$/DM 0.6976 0.6457 0.5793 0.6196 0.6596 0.6716 0.6408 0.6403
- ---------------------------------------------------------------------------------------------------------------------------
<PAGE>
HONG KONG
Gross Domestic Product:
Nominal NA 15.2% 14.0% 16.5% 14.8% 14.6% 15.2% 14.3%
Real NA NA NA NA 4.2% NA NA NA
Inflation (CPI) NA 9.0% 6.5% -6.1% 30.7% 7.7% 2.9% 7.0%
Trade Balance ($HK mil) NA -9463 -1702 -4290 -2188 -5582 -5152 -4006
Current Account Balance ($HK mil) NA NA NA NA 19128 NA NA NA
Interest Rates:
Short Term (3 mo. Interbank) NA NA NA NA 3.7% NA NA NA
Exchange Rates US$/HK$ NA 0.1292 0.1295 0.1291 0.1285 12.94% 12.93% 12.89%
- ----------------------------------------------------------------------------------------------------------------------------
IRELAND
Gross Domestic Product:
Nominal 8.0% 7.3% 6.0% 4.0% 7.7% 7.1% 6.4%
Real 6.7% 3.1% 4.0% 2.2% 4.9% 4.6% 4.7%
Inflation (CPI) 2.3% 1.4% 3.1% 3.2% 1.9% 2.3% 2.7%
Trade Balance ((pound)mil) 9546 8099 7042 4167 8823 8229 6565
Current Account Balance ((pound)mil) 3200 2332 1708 861 2766 2413 1568
Interest Rates:
Short Term (T-Bills) 5.9% 8.6% 9.5% 10.1% 7.2% 8.0% 33.2%
Long Term (Govt Bonds) 8.2% 7.7% 9.1% 9.2% 8.0% 8.3% 32.7%
Exchange Rates US$/(pound) 0.6464 0.7088 0.6137 0.5715 0.6776 0.6563 0.3497
- -------------------------------------------------------------------------------------------------------------------------
JAPAN
Gross National Product:
Nominal 2.4% 0.7% 0.6% 2.6% 6.3% 1.6% 1.2% 2.5%
Real 0.9% 0.5% 0.1% 1.1% 4.0% 0.7% 0.5% 1.3%
Inflation (CPI) -0.1% 0.7% 1.2% 1.7% 3.3% 0.3% 0.6% 1.4%
Trade Balance (Yen bil) 132 144 140 125 96 138 139 127
Current Account Balance (Yen bil) 111 131 132 112 68 121 125 111
Interest Rates:
Short Term (Deposit rate) 0.9% 1.7% 2.1% 3.4% 4.1% 1.3% 1.6% 2.4%
Long Term (Govt Bonds) 2.5% 3.7% 3.7% 4.9% 6.5% 3.1% 3.3% 4.3%
Exchange Rates US$/Japanese(Y) 0.0097 0.0100 0.0089 0.0080 0.0080 0.0099 0.0096 0.0089
- --------------------------------------------------------------------------------------------------------------------------
MALAYSIA
Gross Domestic Product:
Nominal NA 13.7% 10.3% 14.1% 11.9% 12.0% 12.7% 12.6%
Real NA 8.7% 8.3% 7.8% 8.7% 8.5% 8.3% 8.7%
Inflation (CPI) 5.3% 3.7% 3.6% 4.7% 4.4% 3.6% 4.0% 3.8%
Trade Balance (Ringgit mil) NA 1581 3026 3150 391 2304 2586 2135
Current Account Balance (Ringgit mil) NA -4147 -2809 -2167 -4183 -3478 -3041 -2835
Interest Rates:
Short Term (Deposit rate) NA 5.1% 6.5% 8.0% 7.8% 5.8% 6.5% 6.9%
Exchange Rates US$/Ringgit 0.3934 0.3906 0.3702 0.3828 0.3671 0.3804 0.3812 0.3762
- ----------------------------------------------------------------------------------------------------------------------------
<PAGE>
MEXICO
Gross Domestic Product:
Nominal 25.9% 13.3% 21.4% 18.0% 26.2% 19.5% 20.1% 20.9%
Real -6.2% 4.5% 2.0% 3.6% 4.2% -1.0% -0.0% 1.5%
Inflation (CPI) 35.0% 6.9% 9.7% 15.5% 22.7% 20.2% 16.6% 17.6%
Trade Balance (Pesos bil) 7089 -18467 -13481 -15934 -7279 -5689 -8286 -9614
Current Account Balance (Pesos bil) -654 -29418 -23400 -24442 -14888 -15036 -17824 -18560
Interest Rates:
Short Term (T-Bills) 48.4% 14.1% 15.0% 15.6% 19.3% 31.3% 25.9% 22.5%
Exchange Rates US$/Peso 0.1308 0.1878 0.3220 0.3210 0.3256 0.1593 0.2135 0.2574
- --------------------------------------------------------------------------------------------------------------------------
NETHERLANDS
Gross National Product:
Nominal 4.3% 5.1% 2.3% 4.4% 5.0% 4.7% 3.9% 4.2%
Real 2.3% 2.6% 0.3% 2.0% 2.3% 2.5% 1.8% 1.9%
Inflation (CPI) 2.0% 2.7% 2.6% 3.2% 3.1% 2.4% 2.4% 2.7%
Trade Balance (Guilders mil) 20979 18780 16901 12306 11979 19880 18887 16189
Current Account Balance (Guilders mil) 17848 17913 13507 7339 7807 17881 16423 12883
Interest Rates:
Short Term (Deposit Rate) 4.4% 4.7% 3.1% 3.2% 3.2% 4.6% 4.1% 3.7%
Long Term (Govt Bonds) 7.2% 7.2% 6.5% 8.1% 8.7% 7.2% 7.0% 7.6%
Exchange Rates US$/Guilders 0.6233 0.5763 0.5152 0.5512 0.5847 0.5998 0.5716 0.5701
- --------------------------------------------------------------------------------------------------------------------------
NEW ZEALAND
Gross Domestic Product:
Nominal 6.0% 6.9% 7.9% 3.2% 0.0% 6.5% 6.9% 4.8%
Real 6.1% 3.4% 6.0% 0.0% -1.3% 4.8% 5.2% 2.8%
Inflation (CPI) 3.7% 1.7% 1.4% 1.0% 2.6% 2.7% 2.3% 2.1%
Trade Balance (NZ$ mil) 901 1336 1719 1627 2070 1119 1319 1531
Current Account Balance (NZ$ mil) -3778 -2371 -1070 -1370 -1159 -3075 -2406 -1950
Interest Rates:
Short Term (T-Bills) 8.8% 6.7% 6.2% 6.7% 9.7% 7.8% 7.2% 7.6%
Long Term (Govt Bonds) 7.9% 7.5% 6.7% 7.9% 10.0% 7.7% 7.4% 8.0%
Exchange Rates US$/NZ$ 0.6533 0.6425 0.5588 0.5143 0.5411 0.6479 0.6182 0.5820
- ----------------------------------------------------------------------------------------------------------------------------
NORWAY
Gross Domestic Product:
Nominal 6.5% 5.6% 5.0% 2.8% 5.6% 6.0% 5.7% 5.1%
Real 3.3% 9.2% -1.1% 3.3% 3.1% 6.2% 3.7% 3.5%
Inflation (CPI) 2.5% 1.5% 2.3% 2.3% 3.4% 2.0% 2.1% 2.4%
Trade Balance (Kroner mil) NA 8321 7995 9303 8696 8158 8540 8415
Current Account Balance (Kroner mil) NA 3645 2152 2982 5032 2899 2926 3561
Interest Rates:
Short Term (Deposit rate) 5.0% 5.2% 5.5% 10.7% 9.6% 5.1% 5.2% 7.2%
Long Term (Govt Bond) 6.8% 7.1% 6.5% 9.8% 9.9% 7.0% 6.8% 8.0%
Exchange Rates US$/Kroner 0.1583 0.1479 0.1330 0.1444 0.1674 0.1531 0.1464 0.1502
- ------------------------------------------------------------------------------------------------------------------------------
<PAGE>
SINGAPORE
Gross Domestic Product:
Nominal 12.5% 13.8% 16.4% 7.5% 11.0% 13.1% 14.2% 12.2%
Real 8.8% 9.7% 10.8% 6.2% 7.3% 9.2% 9.7% 8.5%
Inflation (CPI) 1.8% 3.0% 2.3% 2.3% 3.4% 2.4% 2.4% 2.6%
Trade Balance (S$ mil) 1625 1351 -2724 -1823 -111 1488 84 -336
Current Account Balance (S$ mil) 15093 11284 4205 5615 4884 13189 10194 8216
Interest Rates:
Short Term (Deposit rate) 3.5% 3.0% 2.3% 2.9% 4.6% 3.3% 2.9% 3.3%
Exchange Rates US$/S$ 0.7071 0.6846 0.6219 0.6079 0.6133 0.6958 0.6712 0.6470
- ---------------------------------------------------------------------------------------------------------------------------
SOUTH AFRICA
Gross Domestic Product:
Nominal 12.5% 12.5% 12.5% 10.0% 12.3% 12.5% 12.5% 12.0%
Real 3.4% 2.7% 1.3% -2.2% -1.0% 3.1% 2.5% 0.8%
Inflation (CPI) 8.6% 9.0% 9.7% 13.9% 15.3% 8.8% 9.1% 11.3%
Trade Balance (Rand mil) 746 3202 5781 5429 6134 1974 3243 4258
Current Account Balance (Rand mil) -3500 -611 1804 1376 2243 -2056 -769 262
Interest Rates:
Short Term (T-Bills) 13.5% 10.9% 11.3% 13.8% 16.7% 12.2% 11.9% 13.2%
Long Term (Govt Bonds) 16.1% 14.8% 14.0% 15.4% 16.3% 15.5% 15.0% 15.3%
Exchange Rates US$/Rand 0.2742 0.2822 0.2943 0.3276 0.3646 0.2782 0.2836 0.3086
-------------------------------------------------------------------------------------------------------------------------
SOUTH KOREA
Gross Domestic Product:
Nominal 14.8% 14.5% 11.1% 11.4% 20.2% 14.7% 13.5% 14.4%
Real 9.0% 8.6% 5.8% 5.1% 9.1% 8.8% 7.8% 7.5%
Inflation (CPI) 4.5% 6.2% 4.8% 6.2% 9.3% 5.4% 5.2% 6.2%
Trade Balance (Won bil) -4746 -3146 1860 -2146 -6980 -3946 -2011 -3032
Current Account Balance (Won bil) -8251 -3855 1016 -3939 -8291 -6053 -3697 -4664
Interest Rates:
Short Term (Deposit rate) 8.8% 8.5% 8.6% 10.0% 10.0% 8.7% 8.6% 9.2%
Long Term (Govt Bonds) 12.4% 12.3% 12.1% 15.1% 16.5% 12.4% 12.3% 13.7%
Exchange Rates US$/Won 0.0013 0.0013 0.0012 0.0013 0.0013 0.0013 0.0013 0.0013
- ----------------------------------------------------------------------------------------------------------------------------
SWEDEN
Gross Domestic Product:
Nominal 7.2% 5.5% 0.3% -0.4% 6.4% 6.3% 4.3% 3.8%
Real 3.0% 2.6% -2.2% -1.4% -1.7% 2.8% 1.1% 0.0%
Inflation (CPI) 2.5% 2.6% 4.5% 2.8% 9.0% 2.5% 3.2% 4.2%
Trade Balance (Kronor mil) 15973 9561 7548 6720 6357 12767 11027 9232
Current Account Balance (Kronor mil) 4633 807 -4161 -8829 -4652 2720 426 -2440
Interest Rates:
Short Term (T-Bills) 8.8% 7.4% 8.4% 12.9% 11.6% 8.1% 8.2% 9.8%
Long Term (Govt Bonds) NA 9.4% 8.5% 10.0% 10.7% 9.0% 9.3% 10.3%
Exchange Rates US$/Kronor 0.1502 0.1340 0.1204 0.1420 0.1808 0.1421 0.1349 0.1455
- ----------------------------------------------------------------------------------------------------------------------------
<PAGE>
SWITZERLAND
Gross Domestic Product:
Nominal 2.1% 2.6% 1.2% 2.3% 5.4% 2.4% 2.0% 2.7%
Real 0.7% 1.2% -0.8% -0.3% -0.0% 1.0% 0.4% 0.2%
Inflation (CPI) 1.8% 0.8% 3.4% 4.1% 5.8% 1.3% 2.0% 3.2%
Trade Balance (S.Francs mil) 3237 3330 1571 -285 -4597 3284 2713 651
Current Account Balance (S.Francs mil) 21622 17984 17908 14235 10374 19803 19171 16425
Interest Rates:
Short Term (T-Bills) 2.8% 4.0% 4.8% 7.8% 7.7% 3.4% 3.8% 5.4%
Long Term (Govt Bonds) 3.7% 5.2% 4.1% 5.5% 6.4% 4.5% 4.3% 5.0%
Exchange Rates US$/Franc 0.8692 0.7625 0.6759 0.6868 0.7377 0.8158 0.7692 0.7464
- ----------------------------------------------------------------------------------------------------------------------------
UNITED KINGDOM
Gross Domestic Product:
Nominal 4.9% 5.8% 5.3% 4.0% 4.5% 5.4% 5.4% 4.9%
Real 2.5% 3.8% 2.1% -0.5% -2.0% 3.2% 2.8% 1.2%
Inflation (CPI) 3.4% 2.5% 1.5% 3.7% 5.9% 3.0% 2.5% 3.4%
Trade Balance (UK(pound)mil) -18390 -16490 -20117 -23428 -18274 -17440 -18332 -19340
Current Account Balance (UK(pound)mil) -6230 -3500 -16210 -18350 -14260 -4865 -8647 -11710
Interest Rates:
Short Term (T-Bills) 6.3% 5.2% 5.3% 8.9% 10.9% 5.7% 5.6% 7.3%
Long Term (Govt Bonds) 8.3% 8.1% 7.9% 9.1% 9.9% 8.2% 8.1% 8.6%
Exchange Rates US$/UK(pound) 1.5500 1.5625 1.4812 1.5120 1.8707 1.5563 1.5312 1.5953
- -----------------------------------------------------------------------------------------------------------------------------
UNITED STATES
Gross National Product:
Nominal 4.6% 5.8% 4.9% 9.1% 3.6% 5.2% 5.1% 5.6%
Real 2.0% 3.5% 2.2% 2.7% -1.0% 2.8% 2.6% 1.9%
Inflation (CPI) 2.8% 2.5% 3.0% 3.1% 4.2% 2.7% 2.8% 3.1%
Trade Balance (US$ bil) -172 -165 -131 -96 -74 -168 -156 -128
Current Account Balance (US$ bil) -148 -148 -100 -61 -9 -148 -132 -93
Interest Rates:
Short Term (T-Bills) 5.5% 4.3% 3.0% 3.5% 5.4% 4.9% 4.3% 4.3%
Long Term (Govt Bonds) 6.6% 7.1% 5.8% 7.0% 7.9% 6.8% 6.5% 6.9%
Note: * Information is obtained primarily from the International Monetary Fund and is believed reliable, but accuracy and
completeness are not guaranteed.
</TABLE>
<PAGE>
PART C
Other Information
Item 24. Financial Statements and Exhibits
(a) Financial Statements
(1) The following financial statements are included in the Prospectus:
Financial Highlights for Wright EquiFund--Hong Kong and Wright
EquiFund--Netherlands, for each of the six years ended December
31, 1996 and for the period from the start of business June 28,
1990 to December 31, 1990.
Financial Highlights for Wright EquiFund--Belgium/Luxembourg for
each of the two years ended December 31, 1996 and for the period
from the start of business, February 15, 1994 to December 31,
1994.
Financial Highlights for Wright EquiFund--Japan, Wright
EquiFund--Nordic and Wright EquiFund--Switzerland for each of the
two years ended December 31, 1996 and for the period from the
start of business, February 14, 1994 to December 31, 1994.
Financial Highlights for Wright EquiFund--Mexico for each of the
two years ended December 31, 1996 and for the period from the
start of business, August 2, 1994 to December 31, 1994.
Financial Highlights for Wright EquiFund--Britain for the year
ended December 31, 1996 and for the period from the start of
business, April 20,1995 to December 31, 1995.
Financial Highlights for Wright EquiFund--Germany for the year
ended December 31, 1996 and for the period from the start of
business, April 19,1995 to December 31, 1995.
INCORPORATED BY REFERENCE TO THE ANNUAL REPORT FOR THE FUND, DATED
DECEMBER 31, 1996, FILED ELECTRONICALLY PURSUANT TO SECTION 30(b)(2) OF
THE INVESTMENT COMPANY ACT OF 1940(ACCESSION NO.0000853255-97-000002).
(2) The following financial statements are included in the Statement
of Additional Information:
For Wright EquiFund--Belgium/Luxembourg, Wright EquiFund--Hong
Kong, Wright EquiFund--Japan, Wright EquiFund--Mexico, Wright
EquiFund--Netherlands, Wright EquiFund--Nordic, and Wright
EquiFund--Switzerland:
Portfolio of Investments, December 31, 1996
Statement of Assets and Liabilities, December 31, 1996
Statement of Operations for the year ended December 31, 1996
Statement of Changes in Net Assets for the two years
ended December 31, 1996
Financial Highlights for each of the two years ended December
31, 1996 and for the period from the start of business,
February 15, 1994 (Wright EquiFund--Belgium/Luxembourg),
February 14, 1994 (Wright EquiFunds--Japan, Nordic and
Switzerland), August 2, 1994 (Wright EquiFund--Mexico) to
December 31, 1994.
Financial Highlights for each of the five years ended December
31, 1996 for Wright EquiFunds--Hong Kong and Netherlands
Notes to Financial Statements
Auditors' Report
<PAGE>
For Wright EquiFund--Britain and Wright EquiFund--Germany:
Portfolio of Investments, December 31, 1996
Statements of Assets and Liabilities, December 31, 1996
Statements of Operations for the year ended December 31, 996
Statement of Changes in Net Assets for the year ended December
31, 1996 and for the period from the start of business, April
20, 1995 for Wright EquiFund--Britain and April 19, 1995 for
Wright EquiFund--Germany to December 31, 1995
Financial Highlights for the year ended December 31,1996 and
for the period from the start of business April 20, 1995
(Wright EquiFund--Britain) and April 19, 1995 (Wright
EquiFund--Germany) to the year ended December 31, 1995.
Notes to Financial Statements
Auditors' Report
(b) Exhibits:
(a)Declaration of Trust dated July 14, 1989 as Amended and
Restated December 20, 1989 filed as Exhibit (1)(a) to
Post-Effective Amendment No. 9 filed October 13, 1995 and
incorporated herein by reference.
(b)Amendment to the Declaration of Trust dated April 13, 1995
filed as Exhibit (1)(b) to Post-Effective Amendment No. 9
filed October 13, 1995 and incorporated herein by reference.
(c)Amended and Restated Establishment and Designation of Series
dated March 17, 1997 filed herewith.
(2) By-laws dated July 14, 1989 filed as Exhibit (2) to Post-Effective
Amendment No. 9 filed October 13, 1995 and incorporated herein
by reference.
(3) Not Applicable
(4) Not Applicable
(5) (a) (1) Investment Advisory Contract between the Registrant
on behalf of Wright EquiFund--Hong Kong, Wright
EquiFund--Italy, Wright EquiFund--Netherlands, and Wright
EquiFund--Spain and Wright Investors' Service dated
August 25, 1994 filed as Exhibit (5)(a)(1) to
Post-Effective Amendment No. 9 filed October 13, 1995
and incorporated herein by reference.
(a) (2) Investment Advisory Contract between the Registrant on
behalf of Wright EquiFund--Australasia, Wright
EquiFund--Global, Wright EquiFund--International, Wright
EquiFund--Ireland, Wright EquiFund--Mexico and Wright
EquiFund--United States and Wright Investors' Service
dated April 1, 1994 filed as Exhibit (5)(a)(2) to
Post-Effective Amendment No. 9 filed October 13, 1995 and
incorporated herein by reference.
(a) (3) Investment Advisory Contract between the Registrant on
behalf of Wright EquiFund--Austria, Wright
EquiFund--Belgium/Luxembourg, Wright EquiFund--Canada,
Wright EquiFund--France, Wright EquiFund--Germany, Wright
EquiFund--Japan, Wright EquiFund--Nordic and Wright
EquiFund--Switzerland and Wright Investors' Service dated
January 20, 1994, filed as Exhibit (5)(a)(3) to
Post-Effective Amendment No. 9 filed October 13, 1995 and
incorporated herein by reference.
(a) (4) Investment Advisory Contract between the Registrant on
behalf of Wright EquiFund--Britain and Wright Investors'
Service dated April 17, 1995 filed as Exhibit (5)(a)(4) to
Post-Effective Amendment No. 9 filed October 13, 1995 and
incorporated herein by reference.
(a) (5) Investment Advisory Contract dated September 3, 1996
between the Registrant on behalf of Wright
EquiFund--Italian and Wright EquiFund--Spanish and Wright
Investors' Service, Inc. filed as Exhibit (5)(a)(5) to
Post-Effective Amendment No. 12 filed March 7, 1997 and
incorporated herein by reference.
<PAGE>
(b) Amended and Restated Administration Agreement between the
Registrant and Eaton Vance Management dated February 28, 1995
filed as Exhibit (5)(b) to Post-Effective Amendment No. 8
filed April 12, 1995 and incorporated herein by reference.
(c) Letter Agreement dated June 19, 1996 to the Amended and
Restated Administration Agreement filed as Exhibit (5)(c) to
Post-Effective Amendment No. 11 filed June 20, 1996 and
incorporated herein by reference.
(6) Distribution Contract dated March 23, 1990 filed as Exhibit (6)
to Post-Effective Amendment No. 9 filed October 13, 1995
and incorporated herein by reference.
(7) Not Applicable
(8) (a) Custodian Agreement with Investors Bank & Trust Company
dated December 19, 1990 filed as Exhibit (8) to Post-Effective
Amendment No. 9 filed October 13, 1995 and incorporated herein
by reference.
(b) Amendment dated September 20, 1995 to Master Custodian
Agreement filed as Exhibit (8)(b) to Post-Effective Amendment
No. 10 filed February 29, 1996 and incorporated herein by
reference.
(9) Service Agreement dated February 1, 1996 between Wright Investors'
Service, Inc. and The Winthrop Corporation filed as
Exhibit (9) to Post-Effective Amendment No. 10 filed February 29,
1996 and incorporated herein by reference.
(10) Opinion of Counsel dated April 25, 1997.
(11) Consent of Independent Certified Public Accountants filed herewith.
(12) Not Applicable
(13) Agreement with Wright Investors' Service in consideration of
providing initial capital dated December 20, 1989 filed as Exhibit
(13) to Post-Effective Amendment No. 9 filed October 13, 1995 and
incorporated herein by reference.
(14) Not Applicable
(15) (a) Amended Distribution Plan pursuant to Rule 12b-1 under the
Investment Company Act of 1940 dated July 7, 1993 filed as
Exhibit (15)(a) to Post-Effective Amendment No. 9 filed
October 13, 1995 and incorporated herein by reference.
(b) Agreement Relating to Implementation of the Amended
Distribution Plan dated July 7, 1993 filed as Exhibit (15)(b)
to Post-Effective Amendment No. 9 filed October 13, 1995 and
incorporated herein by reference.
(16) Schedule of Computation of Performance Quotations filed herewith.
(17) Power of Attorney dated March 18, 1997 filed herewith.
Item 25. Persons Controlled by or under Common Control with Registrant
Not Applicable
<PAGE>
Item 26. Number of Holders of Securities
Title of Class Number of Record Holders as of March 31, 1997
- -------------------------------------------------------------------------------
Shares of Beneficial Interest Wright EquiFund--Australasia.......... -
Wright EquiFund--Austria.............. -
Wright EquiFund--Belgium/Luxembourg... 99
Wright EquiFund--Britain.............. 85
Wright EquiFund--Canada............... -
Wright EquiFund--France............... -
Wright EquiFund--Germany.............. 96
Wright EquiFund--Hong Kong............ 582
Wright EquiFund--Ireland.............. -
Wright EquiFund--Italian.............. 27
Wright EquiFund--Japan................ 193
Wright EquiFund--Mexico............... 855
Wright EquiFund--Netherlands.......... 694
Wright EquiFund--Nordic............... 304
Wright EquiFund--Spanish.............. 1
Wright EquiFund--Switzerland.......... 132
Wright EquiFund--United States........ -
Wright EquiFund--Global............... -
Wright EquiFund--International........ -
Item 27. Indemnification
The Registrant's By-Laws filed as Exhibit No. 2 to Post-Effective Amendment No.
9 contain provisions limiting the liability, and providing for indemnification,
of the Trustees and officers under certain circumstances.
Registrant's Trustees and officers are insured under a standard investment
company errors and omissions insurance policy covering loss incurred by reason
of negligent errors and omissions committed in their capacities as such.
Item 28. Business and Other Connections of Investment Adviser
Reference is made to the information set forth under the captions "Officers and
Trustees" and "Investment Advisory and Administrative Services" in the Statement
of Additional Information, which information is incorporated herein by
reference.
Item 29. Principal Underwriter
(a) Wright Investors' Service Distributors, Inc.(a wholly-owned subsidiary
of The Winthrop Corporation) acts as principal underwriter for each
of the investment companies named below.
The Wright Managed Equity Trust
The Wright Managed Income Trust
The Wright Managed Blue Chip Series Trust
The Wright EquiFund Equity Trust
Catholic Values Investment Trust
<PAGE>
(b)
<TABLE>
<CAPTION>
(1) (2) (3)
Name and Principal Positions and Offices Positions and Offices
Business Address with Principal Underwriter with Registrant
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
A. M. Moody III* President Vice President and Trustee
Peter M. Donovan* Vice President and Treasurer President and Trustee
Vincent M. Simko* Vice President and Secretary None
- -------------------------------------------------------------------------------------------------------------------
* Address is 1000 Lafayette Boulevard, Bridgeport, Connecticut 06604
</TABLE>
(c) Not Applicable.
Item 30. Location of Accounts and Records
All applicable accounts, books and documents required to be maintained by the
Registrant by Section 31(a) of the Investment Company Act of 1940 and the Rules
promulgated thereunder are in the possession and custody of the registrant's
custodian, Investors Bank & Trust Company, 89 South Street, Boston, MA 02111,
and its transfer agent, First Data Investor Services Group, 4400 Computer Drive,
Westborough, MA 01581-5120, with the exception of certain corporate documents
and portfolio trading documents which are either in the possession and custody
of the Registrant's administrator, Eaton Vance Management, 24 Federal Street,
Boston, MA 02110 or of the investment adviser, Wright Investors' Service, Inc.,
1000 Lafayette Boulevard, Bridgeport, CT 06604. Registrant is informed that all
applicable accounts, books and documents required to be maintained by registered
investment advisers are in the custody and possession of Registrant's
administrator, Eaton Vance Management, or of the investment adviser, Wright
Investors' Service, Inc.
Item 31. Management Services
Not Applicable
Item 32. Undertakings
(a) Registrant undertakes to comply with Section 16(c) of the Investment
Company Act of 1940, as amended, which relates to the assistance to be
rendered to shareholders by the Trustees of the Registrant in calling a
meeting of shareholders for the purpose of voting upon the question of
the removal of a trustee.
(b) The Registrant undertakes to file a Post-Effective Amendment, using
financial statments which need not be certified, within four to six
months from the effective date of any prior post-effective amendment
which made effective the registration of shares of a series of the
Registrant and from the commencement of operations, unless such filing
on behalf of that series has already been made.
(c) The annual report also contains performance information and is
available to any recipient of the Prospectus upon request and without
charge by writing to the Wright Investors' Service Distributors, Inc.,
1000 Lafayette Boulevard, Bridgeport, Connecticut 06604.
<PAGE>
Signatures
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant certifies that it meets all of
the requirements for effectiveness of this Amendment to the Registration
Statement pursuant to Rule 485(b) under the Securities Act of 1933 and has duly
caused this Amendment to the Registration Statement to be signed on its behalf
by the undersigned, thereunto duly authorized, in the City of Boston, and the
Commonwealth of Massachusetts on the 25th day of April, 1997.
THE WRIGHT EQUIFUND EQUITY TRUST
By: Peter M. Donovan*
---------------------------------
Peter M. Donovan, President
Pursuant to the requirements of the Securities Act of 1933, this Post-Effective
Amendment to the Registration Statement has been signed below by the following
persons in the capacities and on the 25th day of April, 1997
SIGNATURE TITLE
- -----------------------------------------------------------------------------
Peter M. Donovan* President, Principal
- ------------------ Executive Officer & Trustee
Peter M. Donovan
James L. O'Connor* Treasurer, Principal
- ------------------- Financial and Accounting Officer
James L. O'Connor
H. Day Brigham, Jr.* Trustee
- -----------------------
H. Day Brigham, Jr.
Winthrop S. Emmet* Trustee
- ----------------------
Winthrop S. Emmet
Leland Miles* Trustee
- --------------
Leland Miles
A. M. Moody III* Trustee
- ----------------
A. M. Moody III
Lloyd F. Pierce* Trustee
- ----------------
Lloyd F. Pierce
Richard E. Taber* Trustee
- ------------------
Richard E. Taber
Raymond Van Houtte* Trustee
- -------------------
Raymond Van Houtte
*By /s/ Alan R. Dynner
- -----------------------
Alan R. Dynner
Attorney-in-Fact
<PAGE>
Exhibit Index
The following exhibits are filed as part of this amendment to the
Registration Statement pursuant to General Instructions E of form N-1A.
Page in
Sequential
Numbering
Exhibit No. Description System
- ----------- ----------- ------------
(1)(c) Amended and Restated Establishment and Designation
of Series dated March 18, 1997.
(10) Opinion of Counsel dated April 25, 1997.
(11) Consent of Independent Certified Public Accountants.
(16) Schedule of Computation of Performance Quotations.
(17) Power of Attorney dated March 18, 1997.
THE WRIGHT EQUIFUND EQUITY TRUST
Amended and Restated
Establishment and Designation of Series of Shares
of Beneficial Interest, Without Par Value
March 18, 1997
WHEREAS, pursuant to an Amended and Restated Establishment and Designation
of Series dated June 19, 1996, the Trustees of The Wright EquiFund Equity Trust,
a Massachusetts business trust (the "Trust"), redesignated the shares of
beneficial interest of the Trust into nineteen separate series (or Funds); and
WHEREAS, the Trustees now desire to designate one additional series, i.e.,
Wright EquiFund-Country Strategy pursuant to Section 1A of Article VI of the
Declaration of Trust.
NOW, THEREFORE, the undersigned, being at least a majority of the duly
elected and qualified Trustees presently in office of the Trust acting pursuant
to Section 1A of Article VI of the Declaration of Trust, hereby redivide the
shares of beneficial interest of the Trust into twenty (20) separate series (or
Funds) of the Trust, each Fund to have the following special and relative
rights:
1. The Funds shall be designated as follows effective March 18, 1997:
Wright EquiFund-Australasia
Wright EquiFund-Austria
Wright EquiFund-Belgium/Luxembourg
Wright EquiFund-Britain
Wright EquiFund-Canada
Wright EquiFund-France
Wright EquiFund-Germany
Wright EquiFund-Global
Wright EquiFund-Country Strategy
Wright EquiFund-Hong Kong
Wright EquiFund-International
Wright EquiFund-Ireland
Wright EquiFund-Italian
Wright EquiFund-Japan
Wright EquiFund-Mexico
Wright EquiFund-Netherlands
Wright EquiFund-Nordic
Wright EquiFund-Spanish
Wright EquiFund-Switzerland
Wright EquiFund-United States
2. Each Fund shall be authorized to invest in cash, securities, instruments
and other property as from time to time described in the Trust's then currently
effective registration statement under the Securities Act of 1933 and the
Investment Company Act of 1940. Each share of beneficial interest of each Fund
("share") shall be redeemable, shall be entitled to one vote (or fraction
thereof in respect of a fractional share) on matters on which shares of that
<PAGE>
Fund shall be entitled to vote and shall represent a pro rata beneficial
interest in the assets allocated to that Fund, all as provided in the
Declaration of Trust. The proceeds of sales of shares of a Fund, together with
any income and gain thereon, less any diminution or expenses thereof, shall
irrevocably belong to that Fund, unless otherwise required by law. Each share of
a Fund shall be entitled to receive its pro rata share of net assets of that
Fund upon liquidation of that Fund.
3. Shareholders of each Fund shall vote separately as a class to the extent
provided in Rule 18f-2, as from time to time in effect, under the Investment
Company Act of 1940, as amended.
4. The assets and liabilities of the Trust shall be allocated among the
above referenced Funds as set forth in Section 1A of Article VI of the
Declaration of Trust, except as provided below.
(a) Costs incurred by each Fund in connection with its initial organization
and start-up, including Federal and state registration and qualification fees
and expenses of the initial offering of such Fund shares, shall (if applicable)
be borne by such Fund and deferred and amortized over the five year period
beginning on the date that such Fund commences operations.
(b) The liabilities, expenses, costs, charges or reserves of the Trust
(other than the management and investment advisory fees or the organizational
expenses paid by the Trust) which are not readily identifiable as belonging to
any particular Fund shall be allocated among the Funds on an equitable basis as
determined by the Trustees.
(c) The Trustees may from time to time in particular cases make specific
allocation of assets or liabilities among the Funds.
5. A majority of the Trustees (including any successor Trustees) shall have
the right at any time and from time to time to reallocate assets and expenses or
to change the designation of any Fund now or hereafter created, or to otherwise
change the special and relative rights of any such Fund, and to terminate any
Fund or add additional Funds as provided in the Declaration of Trust.
/s/ Peter M. Donovan /s/ A.M. Moody, III
- -------------------------- --------------------------
Peter M. Donovan A.M. Moody, III
/s/ H. Day Brigham, Jr. /s/ Lloyd F. Pierce
- -------------------------- --------------------------
H. Day Brigham, Jr. Lloyd F. Pierce
/s/ Winthrop S. Emmet /s/ Richard E. Taber
- -------------------------- --------------------------
Winthrop S. Emmet Richard E. Taber
/s/ Leland Miles /s/ Raymond Van Houtte
- -------------------------- --------------------------
Leland Miles Raymond Van Houtte
Dated: March 18, 1997
EXHIBIT 10
Eaton Vance Management
24 Federal Street
Boston, MA 02110
(617) 482-8260
April 25, 1997
The Wright EquiFund Equity Trust
24 Federal Street
Boston, MA 02110
Gentlemen:
The Wright EquiFund Equity Trust (the "Trust") is a Massachusetts business
trust created under a Declaration of Trust dated July 14, 1989, as further
amended from time to time, (the "Declaration of Trust"), executed and delivered
in Boston, Massachusetts.
I am of the opinion that all legal requirements have been complied with in
the creation of the Trust, and that said Declaration of Trust is legal and
valid.
The Trustees of the Trust have the powers set forth in the Declaration of
Trust, subject to the terms, provisions and conditions therein provided. As
provided in the Declaration of Trust, the interest of shareholders is divided
into shares of beneficial interest without par value, and the number of shares
that may be issued is unlimited. The Trustees may from time to time issue and
sell or cause to be issued and sold shares of one or more series for cash or for
property. All such shares, when so issued, shall be fully paid and nonassessable
by the Trust.
By votes duly adopted, the Trustees of the Trust have authorized the
issuance of shares of beneficial interest, without par value. The Trust intends
to register under the Securities Act of 1933, as amended, 2,999,716 of its
shares of beneficial interest with Post-Effective Amendment No. 13 to its
Registration Statement on Form N-1A (the "Amendment") with the Securities and
Exchange Commission.
I have examined originals, or copies, certified or otherwise identified to
my satisfaction, of such certificates, records and other documents as I have
deemed necessary or appropriate for the purpose of this opinion, including the
Declaration of Trust and votes adopted by the Trustees.
<PAGE>
The Wright EquiFund Equity Trust
April 25, 1997
Page 2
Based upon the foregoing, and with respect to Massachusetts law (other than
the Massachusetts Uniform Securities Act), only to the extent that Massachusetts
law may be applicable and without reference to the laws of the other several
states or of the United States of America, I am of the opinion that under
existing law:
1. The Trust is a trust with transferable shares of beneficial interest
organized in compliance with the laws of the Commonwealth of Massachusetts, and
the Declaration of Trust is legal and valid under the laws of the Commonwealth
of Massachusetts.
2. Shares of beneficial interest registered by the Amendment may be legally
and validly issued in accordance with the Declaration of Trust upon receipt by
the Trust of payment in compliance with the Declaration of Trust and, when so
issued and sold, will be fully paid and nonassessable by the Trust.
I am a member of the Massachusetts bar and have acted as internal legal
counsel for the Trust in connection with the Amendment, and I hereby consent to
the filing of this opinion with the Securities and Exchange Commission as an
exhibit thereto.
Very truly yours,
/s/ Eric G. Woodbury
Eric G. Woodbury
Vice President
EXHIBIT 11
Independent Auditors' Consent
We consent to the incorporation by reference in this Post-Effective
Amendment No.13 to the Registration Statement (1933 Act File No. 33-30085) of
The Wright EquiFund Equity Trust of our report dated January 31, 1997 which is
incorporated by reference in the Statement of Additional Information and to the
reference to us under the heading "Financial Highlights" appearing in the
Prospectus which is part of such Registration Statement.
We also consent to the reference to our Firm under the caption "Financial
Statements" in the Statement of Additional Information of the Registration
Statement.
/s/ Deloitte & Touche LLP
DELOITTE & TOUCHE LLP
Boston, Massachusetts
April 28, 1997
EXHIBIT 16
Schedule for Computation of Performance Quotations
The average annual total return will be calculated using the following
formula:
P( 1 + T )n = 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 30-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 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 the 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 per share on the last day of the period.
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.
POWER OF ATTORNEY
We, the undersigned officers and Trustees of The Wright EquiFund Equity
Trust, a Massachusetts business trust, do hereby severally constitute and
appoint H. Day Brigham, Jr., Peter M. Donovan, Alan R. Dynner and A.M. Moody,
III, or any of them, to be true, sufficient and lawful attorneys, or attorney
for each of us, to sign for each of us, in the name of each of us in the
capacities indicated below, and any and all amendments (including post-effective
amendments) to the Registration Statement on Form N-1A filed by The Wright
EquiFund Equity Trust with the Securities and Exchange Commission in respect of
shares of beneficial interest and other documents and papers relating thereto.
IN WITNESS WHEREOF we have hereunto set our hands on the dates set opposite
our respective signatures.
NAME CAPACITY DATE
President, Principal
/s/ Peter M. Donovan Executive Officer and
- ----------------------- Trustee March 18, 1997
Peter M. Donovan
Treasurer and Principal
/s/ James L. O'Connor Financial and Accounting
- ----------------------- Officer March 18, 1997
James L. O'Connor
/s/ H. Day Brigham, Jr.
- ----------------------- Trustee March 18, 1997
H. Day Brigham, Jr.
/s/ Winthrop S. Emmet
- ----------------------- Trustee March 18, 1997
Winthrop S. Emmet
/s/ Leland Miles
- ----------------------- Trustee March 18, 1997
Leland Miles
/s/ A.M. Moody, III
- ----------------------- Trustee March 18, 1997
A.M. Moody, III
/s/ Lloyd F. Pierce
- ----------------------- Trustee March 18, 1997
Lloyd F. Pierce
/s/ Richard E. Taber
- ----------------------- Trustee March 18, 1997
Richard E. Taber
/s/ Raymond Van Houtte
- ----------------------- Trustee March 18, 1997
Raymond Van Houtte
[ARTICLE] 6
[CIK] 0000853255
[NAME] THE WRIGHT EQUIFUND EQUITY TRUST
[SERIES]
[NUMBER] 3
[NAME] WRIGHT EQUIFUND - BELGIUM/LUXEMBOURG
<TABLE>
<S> <C>
[PERIOD-TYPE] 12-MOS
[FISCAL-YEAR-END] DEC-31-1996
[PERIOD-END] DEC-31-1996
[INVESTMENTS-AT-COST] 14,996,515
[INVESTMENTS-AT-VALUE] 18,598,362
[RECEIVABLES] 590,346
[ASSETS-OTHER] 4,628
[OTHER-ITEMS-ASSETS] 511,677
[TOTAL-ASSETS] 19,705,013
[PAYABLE-FOR-SECURITIES] 483,826
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 36,038
[TOTAL-LIABILITIES] 519,864
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 15,503,608
[SHARES-COMMON-STOCK] 1,433,073
[SHARES-COMMON-PRIOR] 0
[ACCUMULATED-NII-CURRENT] 96,537
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] (16,323)
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 3,601,327
[NET-ASSETS] 19,185,149
[DIVIDEND-INCOME] 562,107
[INTEREST-INCOME] 0
[OTHER-INCOME] (82,342)
[EXPENSES-NET] 270,619
[NET-INVESTMENT-INCOME] 209,146
[REALIZED-GAINS-CURRENT] 1,491,743
[APPREC-INCREASE-CURRENT] 1,531,687
[NET-CHANGE-FROM-OPS] 3,232,576
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 131,084
[DISTRIBUTIONS-OF-GAINS] 1,343,612
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 584,173
[NUMBER-OF-SHARES-REDEEMED] 490,375
[SHARES-REINVESTED] 111,259
[NET-CHANGE-IN-ASSETS] 4,432,274
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 131,163
[INTEREST-EXPENSE] 31
[GROSS-EXPENSE] 294,323
[AVERAGE-NET-ASSETS] 17,500,262
[PER-SHARE-NAV-BEGIN] 12.01
[PER-SHARE-NII] 0.171
[PER-SHARE-GAIN-APPREC] 2.334
[PER-SHARE-DIVIDEND] (0.100)
[PER-SHARE-DISTRIBUTIONS] (1.025)
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 13.39
[EXPENSE-RATIO] 1.68
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000853255
[NAME] THE WRIGHT EQUIFUND EQUITY TRUST
[SERIES]
[NUMBER] 8
[NAME] WRIGHT EQUIFUND - BRITAIN
<TABLE>
<S> <C>
[PERIOD-TYPE] 12-MOS
[FISCAL-YEAR-END] DEC-31-1996
[PERIOD-END] DEC-31-1996
[INVESTMENTS-AT-COST] 2,707,104
[INVESTMENTS-AT-VALUE] 3,392,510
[RECEIVABLES] 267,430
[ASSETS-OTHER] 9,998
[OTHER-ITEMS-ASSETS] 155,860
[TOTAL-ASSETS] 3,825,798
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 17,073
[TOTAL-LIABILITIES] 17,073
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 3,270,191
[SHARES-COMMON-STOCK] 419,188
[SHARES-COMMON-PRIOR] 0
[ACCUMULATED-NII-CURRENT] (147,035)
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] (2,508)
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 688,077
[NET-ASSETS] 3,808,725
[DIVIDEND-INCOME] 381,842
[INTEREST-INCOME] 0
[OTHER-INCOME] (63,419)
[EXPENSES-NET] 142,956
[NET-INVESTMENT-INCOME] 175,467
[REALIZED-GAINS-CURRENT] 1,028,628
[APPREC-INCREASE-CURRENT] 90,482
[NET-CHANGE-FROM-OPS] 1,294,577
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 21,078
[DISTRIBUTIONS-OF-GAINS] 1,142,102
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 264,652
[NUMBER-OF-SHARES-REDEEMED] 1,312,055
[SHARES-REINVESTED] 126,746
[NET-CHANGE-IN-ASSETS] (10,123,301)
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 53,712
[INTEREST-EXPENSE] 65
[GROSS-EXPENSE] 172,419
[AVERAGE-NET-ASSETS] 7,133,906
[PER-SHARE-NAV-BEGIN] 10.40
[PER-SHARE-NII] 0.101
[PER-SHARE-GAIN-APPREC] 2.369
[PER-SHARE-DIVIDEND] (0.020)
[PER-SHARE-DISTRIBUTIONS] (3.760)
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 9.09
[EXPENSE-RATIO] 2.34
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000853255
[NAME] THE WRIGHT EQUIFUND EQUITY TRUST
[SERIES]
[NUMBER] 9
[NAME] WRIGHT EQUIFUND - GERMANY
<TABLE>
<S> <C>
[PERIOD-TYPE] 12-MOS
[FISCAL-YEAR-END] DEC-31-1996
[PERIOD-END] DEC-31-1996
[INVESTMENTS-AT-COST] 20,265,171
[INVESTMENTS-AT-VALUE] 22,558,624
[RECEIVABLES] 52,196
[ASSETS-OTHER] 9,989
[OTHER-ITEMS-ASSETS] 655,575
[TOTAL-ASSETS] 23,276,384
[PAYABLE-FOR-SECURITIES] 112,867
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 25,886
[TOTAL-LIABILITIES] 138,753
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 21,577,732
[SHARES-COMMON-STOCK] 2,175,651
[SHARES-COMMON-PRIOR] 0
[ACCUMULATED-NII-CURRENT] 51,238
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] (784,580)
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 2,293,241
[NET-ASSETS] 23,137,631
[DIVIDEND-INCOME] 334,496
[INTEREST-INCOME] 0
[OTHER-INCOME] (36,625)
[EXPENSES-NET] 314,240
[NET-INVESTMENT-INCOME] (16,369)
[REALIZED-GAINS-CURRENT] (551,241)
[APPREC-INCREASE-CURRENT] 3,446,304
[NET-CHANGE-FROM-OPS] 2,878,694
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 0
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 1,125,043
[NUMBER-OF-SHARES-REDEEMED] 726,070
[SHARES-REINVESTED] 1
[NET-CHANGE-IN-ASSETS] 6,718,671
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 150,387
[INTEREST-EXPENSE] 189
[GROSS-EXPENSE] 337,364
[AVERAGE-NET-ASSETS] 20,069,934
[PER-SHARE-NAV-BEGIN] 9.24
[PER-SHARE-NII] (0.001)
[PER-SHARE-GAIN-APPREC] 1.391
[PER-SHARE-DIVIDEND] 0
[PER-SHARE-DISTRIBUTIONS] 0
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 10.63
[EXPENSE-RATIO] 1.68
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000853255
[NAME] THE WRIGHT EQUIFUND EQUITY TRUST
[SERIES]
[NUMBER] 2
[NAME] WRIGHT EQUIFUND - HONG KONG
<TABLE>
<S> <C>
[PERIOD-TYPE] 12-MOS
[FISCAL-YEAR-END] DEC-31-1996
[PERIOD-END] DEC-31-1996
[INVESTMENTS-AT-COST] 26,698,687
[INVESTMENTS-AT-VALUE] 33,025,313
[RECEIVABLES] 141,228
[ASSETS-OTHER] 0
[OTHER-ITEMS-ASSETS] 1,494,598
[TOTAL-ASSETS] 34,661,139
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 294,891
[TOTAL-LIABILITIES] 294,891
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 32,640,233
[SHARES-COMMON-STOCK] 2,086,917
[SHARES-COMMON-PRIOR] 0
[ACCUMULATED-NII-CURRENT] 711,307
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] (5,311,906)
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 6,326,614
[NET-ASSETS] 34,366,248
[DIVIDEND-INCOME] 910,840
[INTEREST-INCOME] 0
[OTHER-INCOME] 0
[EXPENSES-NET] 402,425
[NET-INVESTMENT-INCOME] 508,415
[REALIZED-GAINS-CURRENT] 566,477
[APPREC-INCREASE-CURRENT] 6,216,698
[NET-CHANGE-FROM-OPS] 7,291,590
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 411,362
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 2,956,048
[NUMBER-OF-SHARES-REDEEMED] 2,843,413
[SHARES-REINVESTED] 24,389
[NET-CHANGE-IN-ASSETS] 8,966,917
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 210,176
[INTEREST-EXPENSE] 7,139
[GROSS-EXPENSE] 455,597
[AVERAGE-NET-ASSETS] 28,052,535
[PER-SHARE-NAV-BEGIN] 13.03
[PER-SHARE-NII] 0.182
[PER-SHARE-GAIN-APPREC] 3.458
[PER-SHARE-DIVIDEND] (0.200)
[PER-SHARE-DISTRIBUTIONS] 0
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 16.47
[EXPENSE-RATIO] 1.62
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000853255
[NAME] THE WRIGHT EQUIFUND EQUITY TRUST
[SERIES]
[NUMBER] 4
[NAME] WRIGHT EQUIFUND - JAPAN
<TABLE>
<S> <C>
[PERIOD-TYPE] 12-MOS
[FISCAL-YEAR-END] DEC-31-1996
[PERIOD-END] DEC-31-1996
[INVESTMENTS-AT-COST] 18,085,952
[INVESTMENTS-AT-VALUE] 16,549,673
[RECEIVABLES] 43,043
[ASSETS-OTHER] 3,941
[OTHER-ITEMS-ASSETS] 550,471
[TOTAL-ASSETS] 17,147,128
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 106,189
[TOTAL-LIABILITIES] 106,189
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 20,302,540
[SHARES-COMMON-STOCK] 2,135,019
[SHARES-COMMON-PRIOR] 0
[ACCUMULATED-NII-CURRENT] (600)
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] (1,724,576)
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] (1,536,425)
[NET-ASSETS] 17,040,939
[DIVIDEND-INCOME] 136,204
[INTEREST-INCOME] 0
[OTHER-INCOME] (20,431)
[EXPENSES-NET] 318,269
[NET-INVESTMENT-INCOME] (202,496)
[REALIZED-GAINS-CURRENT] 12,609
[APPREC-INCREASE-CURRENT] (1,695,909)
[NET-CHANGE-FROM-OPS] (1,885,796)
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 0
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 1,936,498
[NUMBER-OF-SHARES-REDEEMED] 2,264,122
[SHARES-REINVESTED] 0
[NET-CHANGE-IN-ASSETS] (4,590,044)
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 144,668
[INTEREST-EXPENSE] 6,587
[GROSS-EXPENSE] 337,338
[AVERAGE-NET-ASSETS] 19,278,464
[PER-SHARE-NAV-BEGIN] 8.78
[PER-SHARE-NII] (0.095)
[PER-SHARE-GAIN-APPREC] (0.705)
[PER-SHARE-DIVIDEND] 0
[PER-SHARE-DISTRIBUTIONS] 0
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 7.98
[EXPENSE-RATIO] 1.75
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000853255
[NAME] THE WRIGHT EQUIFUND EQUITY TRUST
[SERIES]
[NUMBER] 7
[NAME] WRIGHT EQUIFUND - MEXICO
<TABLE>
<S> <C>
[PERIOD-TYPE] 12-MOS
[FISCAL-YEAR-END] DEC-31-1996
[PERIOD-END] DEC-31-1996
[INVESTMENTS-AT-COST] 190,508,778
[INVESTMENTS-AT-VALUE] 21,924,893
[RECEIVABLES] 96,650
[ASSETS-OTHER] 8,941
[OTHER-ITEMS-ASSETS] 107,433
[TOTAL-ASSETS] 22,137,917
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 110,253
[TOTAL-LIABILITIES] 110,253
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 25,320,826
[SHARES-COMMON-STOCK] 4,093,791
[SHARES-COMMON-PRIOR] 0
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] (5,709,277)
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 2,416,115
[NET-ASSETS] 22,027,664
[DIVIDEND-INCOME] 391,476
[INTEREST-INCOME] 0
[OTHER-INCOME] 0
[EXPENSES-NET] 433,427
[NET-INVESTMENT-INCOME] (41,951)
[REALIZED-GAINS-CURRENT] 3,797,417
[APPREC-INCREASE-CURRENT] 2,713,474
[NET-CHANGE-FROM-OPS] 6,468,940
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 0
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 8,030,684
[NUMBER-OF-SHARES-REDEEMED] 11,639,808
[SHARES-REINVESTED] 27
[NET-CHANGE-IN-ASSETS] (10,465,378)
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 231,258
[INTEREST-EXPENSE] 14,933
[GROSS-EXPENSE] 489,676
[AVERAGE-NET-ASSETS] 30,805,200
[PER-SHARE-NAV-BEGIN] 4.22
[PER-SHARE-NII] (0.012)
[PER-SHARE-GAIN-APPREC] 1.172
[PER-SHARE-DIVIDEND] 0
[PER-SHARE-DISTRIBUTIONS] 0
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 5.38
[EXPENSE-RATIO] 1.59
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000853255
[NAME] THE WRIGHT EQUIFUND EQUITY TRUST
[SERIES]
[NUMBER] 1
[NAME] WRIGHT EQUIFUND - NETHERLANDS
<TABLE>
<S> <C>
[PERIOD-TYPE] 12-MOS
[FISCAL-YEAR-END] DEC-31-1996
[PERIOD-END] DEC-31-1996
[INVESTMENTS-AT-COST] 5,794,805
[INVESTMENTS-AT-VALUE] 6,919,316
[RECEIVABLES] 184,032
[ASSETS-OTHER] 0
[OTHER-ITEMS-ASSETS] 488,153
[TOTAL-ASSETS] 7,591,501
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 25,473
[TOTAL-LIABILITIES] 25,473
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 6,472,630
[SHARES-COMMON-STOCK] 843,777
[SHARES-COMMON-PRIOR] 0
[ACCUMULATED-NII-CURRENT] (26,052)
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] (4,813)
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 1,124,263
[NET-ASSETS] 7,566,028
[DIVIDEND-INCOME] 230,816
[INTEREST-INCOME] 0
[OTHER-INCOME] (34,631)
[EXPENSES-NET] 138,423
[NET-INVESTMENT-INCOME] 57,762
[REALIZED-GAINS-CURRENT] 1,625,807
[APPREC-INCREASE-CURRENT] 596,237
[NET-CHANGE-FROM-OPS] 2,279,806
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 0
[DISTRIBUTIONS-OF-GAINS] 1,604,679
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 957,002
[NUMBER-OF-SHARES-REDEEMED] 1,131,432
[SHARES-REINVESTED] 178,364
[NET-CHANGE-IN-ASSETS] 348,491
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 52,195
[INTEREST-EXPENSE] 750
[GROSS-EXPENSE] 165,679
[AVERAGE-NET-ASSETS] 6,960,151
[PER-SHARE-NAV-BEGIN] 8.59
[PER-SHARE-NII] 0.047
[PER-SHARE-GAIN-APPREC] 2.943
[PER-SHARE-DIVIDEND] 0
[PER-SHARE-DISTRIBUTIONS] (2.610)
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 8.97
[EXPENSE-RATIO] 2.22
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000853255
[NAME] THE WRIGHT EQUIFUND EQUITY TRUST
[SERIES]
[NUMBER] 5
[NAME] WRIGHT EQUIFUND - NORDIC
<TABLE>
<S> <C>
[PERIOD-TYPE] 12-MOS
[FISCAL-YEAR-END] DEC-31-1996
[PERIOD-END] DEC-31-1996
[INVESTMENTS-AT-COST] 5,580,943
[INVESTMENTS-AT-VALUE] 6,737,865
[RECEIVABLES] 69,641
[ASSETS-OTHER] 3,941
[OTHER-ITEMS-ASSETS] 353,485
[TOTAL-ASSETS] 7,164,932
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 133,956
[TOTAL-LIABILITIES] 133,956
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 5,565,496
[SHARES-COMMON-STOCK] 475,856
[SHARES-COMMON-PRIOR] 0
[ACCUMULATED-NII-CURRENT] 30,208
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 278,079
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 1,157,193
[NET-ASSETS] 7,030,976
[DIVIDEND-INCOME] 85,707
[INTEREST-INCOME] 0
[OTHER-INCOME] (12,856)
[EXPENSES-NET] 100,372
[NET-INVESTMENT-INCOME] (27,521)
[REALIZED-GAINS-CURRENT] 639,128
[APPREC-INCREASE-CURRENT] 774,974
[NET-CHANGE-FROM-OPS] 1,386,581
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 0
[DISTRIBUTIONS-OF-GAINS] 85,095
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 538,936
[NUMBER-OF-SHARES-REDEEMED] 378,056
[SHARES-REINVESTED] 5,676
[NET-CHANGE-IN-ASSETS] 3,526,671
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 37,679
[INTEREST-EXPENSE] 540
[GROSS-EXPENSE] 140,070
[AVERAGE-NET-ASSETS] 5,033,305
[PER-SHARE-NAV-BEGIN] 11.33
[PER-SHARE-NII] (0.064)
[PER-SHARE-GAIN-APPREC] 3.694
[PER-SHARE-DIVIDEND] 0
[PER-SHARE-DISTRIBUTIONS] (0.180)
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 14.78
[EXPENSE-RATIO] 2.21
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
[ARTICLE] 6
[CIK] 0000853255
[NAME] WRIGHT EQUIFUND EQUITY TRUST
[SERIES]
[NUMBER] 6
[NAME] WRIGHT EQUIFUND - SWITZERLAND
<TABLE>
<S> <C>
[PERIOD-TYPE] 12-MOS
[FISCAL-YEAR-END] DEC-31-1996
[PERIOD-END] DEC-31-1996
[INVESTMENTS-AT-COST] 5,710,944
[INVESTMENTS-AT-VALUE] 5,927,237
[RECEIVABLES] 71,428
[ASSETS-OTHER] 4,567
[OTHER-ITEMS-ASSETS] 127,953
[TOTAL-ASSETS] 6,131,185
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 22,682
[TOTAL-LIABILITIES] 22,682
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 5,821,498
[SHARES-COMMON-STOCK] 563,199
[SHARES-COMMON-PRIOR] 0
[ACCUMULATED-NII-CURRENT] 4,406
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 73,732
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 208,867
[NET-ASSETS] 6,108,503
[DIVIDEND-INCOME] 172,571
[INTEREST-INCOME] 0
[OTHER-INCOME] (25,871)
[EXPENSES-NET] 148,034
[NET-INVESTMENT-INCOME] (1,334)
[REALIZED-GAINS-CURRENT] 279,574
[APPREC-INCREASE-CURRENT] (224,621)
[NET-CHANGE-FROM-OPS] 53,619
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 0
[DISTRIBUTIONS-OF-GAINS] 175,251
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 325,732
[NUMBER-OF-SHARES-REDEEMED] 465,629
[SHARES-REINVESTED] 15,805
[NET-CHANGE-IN-ASSETS] (1,519,752)
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 00
[GROSS-ADVISORY-FEES] 55,526
[INTEREST-EXPENSE] 486
[GROSS-EXPENSE] 163,615
[AVERAGE-NET-ASSETS] 7,399,356
[PER-SHARE-NAV-BEGIN] 11.10
[PER-SHARE-NII] (0.006)
[PER-SHARE-GAIN-APPREC] 0.066
[PER-SHARE-DIVIDEND] 0
[PER-SHARE-DISTRIBUTIONS] (0.310)
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 10.85
[EXPENSE-RATIO] 2.08
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
