EquiFund(R)
THE WRIGHT EQUIFUND
EQUITY TRUST
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Description of art work on front cover of the report.
EquiFund logo in center of page with a globe underneath it, all of which is
set on a blue background.
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Semi-Annual Report
as of June 30, 1998
<PAGE>
THE WRIGHT EQUIFUND
EQUITY TRUST
The Wright EquiFund Equity Trust (EquiFund) is an open-end, management
investment company, known as a mutual fund, registered as a diversified
investment company under the Investment Company Act of 1940. EquiFund
consists of six separate and distinct non-diversified series or funds.
Investment Objective
Each Fund of EquiFund 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 are included in the National Equity Indexes.
The Active Funds
Wright EquiFund -- Belgium/Luxembourg
Wright EquiFund -- Hong Kong/China
Wright EquiFund -- Japan
Wright EquiFund -- Mexico
Wright EquiFund -- Netherlands
Wright EquiFund -- Nordic
TABLE OF CONTENTS
Investment Objective...........Inside Front Cover
Report To Shareholders......................... 1
Wright EquiFunds
Dividend Distributions:
Belgium/Luxembourg........................... 4
Hong Kong/China.............................. 4
Japan........................................ 4
Mexico....................................... 5
Netherlands.................................. 5
Nordic....................................... 5
Wright EquiFund -- Belgium/Luxembourg
Portfolio of Investments......................6
Wright EquiFund -- Hong Kong/China
Portfolio of Investments......................7
Wright EquiFund -- Japan
Portfolio of Investments......................8
Wright EquiFund -- Mexico
Portfolio of Investments......................9
Wright EquiFund -- Netherlands
Portfolio of Investments.....................10
Wright EquiFund -- Nordic
Portfolio of Investments.....................11
Statements of Assets & Liabilities.............12
Statements of Operations.......................14
Statements of Changes in Net Assets............16
Financial Highlights...........................18
Notes to Financial Statements..................24
<PAGE>
Report To Shareholders
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July 1998
Dear Shareholders :
For the first half of 1998, international stock prices continued to exhibit a
split personality, with markets strong in Europe and the U.S. and uniformly weak
throughout Asia. Thirteen of the fourteen biggest European stock markets rose
during the first half, with several hitting record highs at midyear. All told,
the FT/S&P total return index for Europe was up 26% in dollar terms during the
first half. Like the European bourses, U.S. stocks put in a strong first-half
performance, although the gains were a good deal harder to come by in the second
quarter.
In contrast to Europe's strong showing, Japan was down 3% in dollars during the
first half, and the rest of Asia declined 20% on average, with all eight of the
Asian markets in the FT/S&P universe sharply lower during the second quarter.
Asia's crisis is turning out to be worse than many thought earlier in the year.
To date, the IMF's prescriptions of tight fiscal and monetary policies for Asia
do not appear to be helping matters. In early July, Japan's "total plan" for
restoring confidence in its banks and stimulating growth was announced; its
effectiveness is in some doubt as well. The resignation of Prime Minister
Hashimoto, after a poor showing by the LDP in July's elections, adds another
uncertainty to the outlook for Japan. This is no small matter for the rest of
Asia either, since a strong yen and increasing Japanese domestic demand would
provide a boost to the region.
In the U.S. and Europe, the rate of economic expansion is cooling a bit. This
will restrain inflation pressures - such as they are and central bank tendencies
to tighten. In fact, the slowing trend that is making its way to the West may be
welcome news for the global bond markets, which have already experienced several
months of falling interest rates and increasing market values. But it does leave
many questions unanswered for equities markets the world over.
The paragraphs on the following pages discuss the economic, political and market
factors affecting the investment performance of the Wright National Fiduciary
Equity Funds during the first half of 1998 and prospects for the 1998-99 period.
Sincerely,
/S/ Peter M. Donovan
Peter M. Donovan
President
<PAGE>
BELGIUM/LUXEMBOURG
Belgian stocks continue to lead the European region. The FT/S&P Actuaries total
return index for Belgium, which has increased for eight months in a row, rose
48.2% in francs (47.6% in U.S. dollars) in the first half of 1998, compared with
26.3% (26.1%) for all of Europe.
Belgium's inflation rate slipped to 1.6% for the year through June compared to
1.8% in May; further moderation in prices is expected. Belgium is keeping its
benchmark interest rate pegged to Germany's low 3.3%, limiting its ability to
fight inflation except to the extent Germany (soon the European Central Bank)
does. Investment by Belgian companies was almost 9% higher in 1998's first
quarter than in the prior year, and a National Bank of Belgium survey indicates
that Belgian manufacturers plan to increase their capital investment by 12% in
1998. With the highest labor costs of the Euro participants, according to a
recent study, Belgium needs productivity-enhancing investment to stay
competitive.
HONG KONG/CHINA
Hong Kong stocks tumbled in June on worries that weakness in the Japanese yen
might cause China to devalue its currency and eventually unpeg the Hong Kong
dollar from the U.S. dollar. The FT/S&P Actuaries total return index for Hong
Kong lost 29% for the first six months of 1998 and more than 50% over the past
year. The FT index for Hong Kong is near a five-year low.
In hopes of stabilizing Hong Kong's real estate market, where prices have fallen
more than 40% from 1997's peak, the government said it would freeze public land
sales through March 1999. Also announced were tax cuts aimed at stimulating the
economy and easing a credit crunch, as well as a step-up in infrastructure
spending. The programs are expected to result in a budget deficit in the current
fiscal year; the government reported a larger-than-expected surplus for the year
ended March 1998. Duff & Phelps has cut Hong Kong's credit rating to A from A+,
due to the "financial stresses" resulting from Asia's crisis; S&P is reviewing
its rating on Hong Kong for a possible downgrade.
JAPAN
As economic conditions deteriorated in the second quarter of 1998, the Japanese
stock market retreated. For the first six months of the year, the FT/S&P
Actuaries total return index for Japan fell 3% in dollar terms. Stock prices
were actually up nominally, but weakness in the yen brought down dollar-based
returns. In mid-June, the U.S. and Japan intervened in the foreign exchange
markets in order to help support the yen.
After a setback to his Liberal Democratic Party in upper house elections on July
12, Prime Minister Hashimoto resigned. The ruling party's poor showing may delay
the adoption of economic stimulus and reform packages. On the other hand, the
losses may be just what the LDP needed to finally get it moving toward change.
Japan's GDP declined at a 5.3% annual rate in the first quarter, and its
recession appears to be deepening. But Hashimoto was indecisive about
implementing tax cuts and a bank rescue package, perhaps because allowing weak
banks to fail might worsen Japan's credit crunch in the short run, and tax cuts
could widen the budget deficit.
MEXICO
Mexican stocks followed May's sharp decline with another drop in June as
investors worried about the weak peso, lower oil prices, and emerging markets in
<PAGE>
general. The FT/S&P Actuaries total return index for Mexico declined 15.6% in
pesos (24.3% in dollars) during the first half of 1998. The peso declined 1.5%
in value compared to the U.S. dollar in June and lost about 10% over the first
six months of 1998. In a show of confidence, some major Mexican companies have
been taking advantage of recent market weakness to buy back their own shares.
In early July, the Mexican government announced a third round of budget cuts to
offset the impact of lower oil revenues in order to hold the budget deficit at
1.25% of GDP. The government's target for GDP growth in 1998 is unchanged at
5.0%. Strong consumer spending, higher food prices, and the effect of the weak
peso appear to be driving inflation to exceed the government's 12% target for
1998. In June, the central bank tightened monetary policy for the second time
this year.
NETHERLANDS
The FT/S&P total return index for the Netherlands gained 28% (27% in dollars)
during the first half of 1998, just slightly ahead of the average European
stock's 26% advance (in guilders and dollars).
Concern about overheating in the Dutch economy eased a little as annual
inflation slipped to 2.0% in the year to May from 2.4% the previous month.
Inflation is still well above the 1.4% averaged by all 11 Euro participants, and
a tight jobs market in the Netherlands is fostering concern about rising wages.
In the three months through May, the unemployment rate was at a 17-year low of
4.3%. The consensus forecast has Dutch economic growth slowing only slightly in
1999 after hitting 3.6% this year. A new budget proposal recently agreed to by
coalition government leaders calls for tax cuts and higher spending on health
care and education.
Economic growth is expected to boost tax revenues, allowing for a reduction in
the deficit.
NORDIC MARKETS
The FT/S&P Actuaries total return index for the Nordic region rose about 27%
both in local currency terms and in dollars. So far this year, the Finnish
market is the strongest in the world in dollar terms, with a six-month gain of
62%. Norway's market is down 5% in dollars this year, Denmark's is up 12%, and
Swedish stocks have returned 26%.
To support the weakening krone, the Norwegian central bank has raised benchmark
interest rates three times from mid-May to early July for a total increase of
100 basis points. The bank, whose only mandate is a stable currency, has warned
the government that a tighter fiscal policy is needed to prevent overheating. In
contrast, Sweden's economy appears to be slowing, raising speculation that early
June's rate cut will be followed by further easing. Although Finland's economy
grew 6.4% year over year in the first quarter, inflation eased to 1.5% in May,
the lowest rate since last August.
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INVESTORS ARE REMINDED THAT PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS
AND THAT INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN
INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL
COST. THERE ARE ADDITIONAL RISKS ASSOCIATED WITH INTERNATIONAL INVESTING SUCH AS
CURRENCY FLUCTUATIONS AND POTENTIAL POLITICAL INSTABILITY.
<PAGE>
Dividend Distributions
<TABLE>
<CAPTION>
N.A.V. Distri- Distri- Value 12 Month 5 Year Cum.
Period Per bution bution Shares $1,000 Investment Investment Investment
Ending Share $ P/S in Shares Owned Investment Return Return Return
(Annualized) (Annualized)
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WRIGHT EQUIFUND - BELGIUM/LUXEMBOURG (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
2/15/94 $10.00 100.00 $1,000.00
Dec. 97 9.54 5.330 0.564021 174.61 1,665.75 11.43% - 14.08%
Jan. 98 9.82 174.61 1,714.64 12.60% - 14.59%
Feb. 98 10.29 174.61 1,796.71 18.08% - 15.63%
Mar. 98 10.89 174.61 1,901.47 23.87% - 16.88%
Apr. 98 11.38 174.61 1,987.03 29.16% - 17.75%
May 98 12.25 174.61 2,138.94 33.42% - 19.40%
Jun. 98 12.71 174.61 2,219.26 33.50% - 20.01%
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WRIGHT EQUIFUND - HONG KONG/CHINA (UNAUDITED)
6/28/90 $10.00 100.00 $1,000.00
Dec. 97 11.98 118.49 1,419.50 -27.26% 1.89% 4.78%
Jan. 98 10.17 118.49 1,205.03 -37.65% -1.94% 2.49%
Feb. 98 11.56 118.49 1,369.73 -28.51% -1.13% 4.19%
Mar. 98 11.48 118.49 1,360.25 -24.52% -1.46% 4.05%
Apr. 98 10.39 118.49 1,231.10 -33.14% -4.30% 2.69%
May 98 9.02 118.49 1,068.77 -47.86% -8.26% 0.84%
Jun. 98 8.30 118.49 983.46 -54.52% -9.26% -0.21%
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WRIGHT EQUIFUND - JAPAN (UNAUDITED)
2/14/94 $10.00 100.00 $1,000.00
Dec. 97 6.84 101.28 692.72 -14.29% - -9.04%
Jan. 98 7.16 101.28 725.13 -3.76% - -7.79%
Feb. 98 6.90 101.28 698.80 -10.62% - -8.49%
Mar. 98 6.70 101.28 678.54 -12.76% - -8.98%
Apr. 98 6.70 101.28 678.54 -14.97% - -8.81%
May 98 6.43 101.28 651.20 -25.75% - -9.51%
Jun. 98 6.50 101.28 658.29 -28.34% - -9.12%
</TABLE>
<PAGE>
WRIGHT EQUIFUND - MEXICO (UNAUDITED)
<TABLE>
<CAPTION>
N.A.V. Distri- Distri- Value 12 Month 5 Year Cum.
Period Per bution bution Shares $1,000 Investment Investment Investment
Ending Share $ P/S in Shares Owned Investment Return Return Return
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
8/02/94 $10.00 100.00 $1,000.00
Dec. 97 7.66 109.09 835.63 42.38% - -5.12%
Jan. 98 6.61 109.09 721.08 15.36% - -8.92%
Feb. 98 6.86 109.09 748.35 17.47% - -7.79%
Mar. 98 7.14 109.09 778.90 23.53% - -6.60%
Apr. 98 7.30 109.09 796.35 28.52% - -5.90%
May 98 6.37 109.09 694.90 5.64% - -9.07%
Jun. 98 5.95 109.09 649.08 -10.93% - -10.47%
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WRIGHT EQUIFUND - NETHERLANDS (UNAUDITED)
6/28/90 $10.00 100.00 $1,000.00
Dec. 97 9.81 0.550 0.056643 220.32 2,161.38 15.56% 20.09% 10.82%
Jan. 98 9.99 220.32 2,201.04 20.36% 20.19% 10.96%
Feb. 98 11.02 220.32 2,427.98 26.43% 22.12% 12.28%
Mar. 98 11.36 220.32 2,502.89 28.38% 21.93% 12.58%
Apr. 98 11.49 220.32 2,531.53 31.25% 22.02% 12.60%
May 98 12.11 220.32 2,668.13 31.65% 23.55% 13.21%
Jun. 98 12.03 220.32 2,650.50 24.99% 24.45% 12.97%
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WRIGHT EQUIFUND - NORDIC (UNAUDITED)
2/14/94 $10.00 100.00 $1,000.00
Dec. 97 12.68 2.830 0.162353 129.74 1,645.12 5.22% - 13.63%
Jan. 98 12.74 129.74 1,652.90 5.36% - 13.46%
Feb. 98 13.61 129.74 1,765.78 14.64% - 15.04%
Mar. 98 14.42 129.74 1,870.87 18.54% - 16.33%
Apr. 98 15.24 129.74 1,977.25 31.61% - 17.51%
May 98 15.28 129.74 1,982.44 23.08% - 17.21%
Jun. 98 14.91 129.74 1,934.44 14.55% - 16.21%
</TABLE>
<PAGE>
Wright EquiFund - Belgium/Luxembourg
For the Six Months Ended June 30, 1998 (unaudited)
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Shares Description Value
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BEVERAGES - 3.5%
43,570 Quilmes Industries S.A. $ 383,416
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CHEMICALS - 3.1%
4,800 Tessenderlo Chemie $ 348,387
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CONSTRUCTION - 3.3%
3,250 Cimenteries Cbr Cementbed $ 364,315
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DIVERSIFIED - 3.0%
65 Ucb Sa $ 337,319
----------
ELECTRONICS - 3.4%
1,355 Barco N.V. (Industries) $ 378,817
----------
FINANCIAL - 6.9%
8,500 KBC Bancassurance Holding SA $ 760,887
----------
OIL, GAS & COAL - 3.3%
900 Petrofina Sa Npv $ 369,556
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REAL ESTATE & OTHER FINANCIALS - 16.4%
3,760 Algemene Maatschappij Voor Nijver. NV $ 344,667
5,500 Campagnie Benelux Paribas SA 382,930
1,535 Fortis Ag 392,003
110 Socfinasia 351,882
6,800 Sofina 347,311
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$ 1,818,793
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RETAILERS - 9.9%
510 Colruyt Sa $ 400,323
5,000 Delhaize Le Ps 349,462
6,200 G.I.B. Holdings Ltd 350,000
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$ 1,099,785
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UTILITIES - 11.2%
2,550 Electrabel SA $ 723,185
3,590 Tractebel SA 525,954
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$ 1,249,139
----------
MISCELLANEOUS - 3.5%
950 Ackermans & Van Haaren $ 392,003
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TOTAL INVESTMENTS
(identified cost, $6,574,208) - 67.5% $ 7,502,417
OTHER ASSETS, LESS LIABILITIES - 32.5% 3,607,128
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NET ASSETS - 100.0% $11,109,545
===========
See notes to financial statements
<PAGE>
Wright EquiFund - Hong Kong/China
For the Six Months Ended June 30, 1998 (unaudited)
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Shares Description Value
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AEROSPACE - 1.6%
46,800 Hong Kong Aircraft Engineering Co. $ 72,493
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DIVERSIFIED - 12.1%
35,000 Hutchison Whampoa Ltd. $ 184,781
90,000 New World Development 174,261
49,000 Swire Pacific Ltd. 185,007
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$ 544,049
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ELECTRICAL - 3.5%
43,400 Johnson Electric Holdings-500 $ 160,782
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FINANCIAL - 25.7%
148,004 Bank of East Asia Hong Kong $ 160,479
110,000 Guoco Group Ltd. 115,722
30,900 Hang Seng Bank 174,702
25,346 HSBC Holdings PLC 619,991
45,640 Wing Lung Bank 106,044
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$ 1,176,938
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PRINTING & PUBLISHING - 2.6%
250,000 South China Morning Post
(Hold.) Ltd. $ 120,208
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REAL ESTATE & OTHER FINANCIALS - 11.5%
34,000 Cheung Kong $ 167,213
55,000 Henderson Land Devel. Co. Ltd. 181,393
42,519 Sun Hung Kai Properties Ltd. 180,570
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$ 529,176
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RETAILERS - 4.5%
59,666 Dickson Concepts Int'l. $ 83,180
184,000 Jardine Int'l. Motor Holdings 67,691
149,000 Sime Darby Hong Kong Limited 56,257
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$ 207,128
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TRANSPORTATION - 4.0%
259,000 Cathay Pacific Airways Ltd. $ 182,206
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UTILITIES - 19.2%
40,000 China Light & Power Co. $ 182,264
159,716 Hong Kong & China Gas* 181,425
60,000 Hong Kong Electric Holdings Ltd. 185,878
176,490 Hong Kong Telecom 331,474
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$ 881,041
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MISCELLANEOUS - 3.7%
95,000 Citic Pacific Ltd. $ 168,001
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TOTAL INVESTMENTS
(identified cost, $4,743,102) - 88.4% $ 4,042,022
OTHER ASSETS, LESS LIABILITIES - 11.6% 532,870
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NET ASSETS - 100.0% $ 4,574,892
===========
* Non-income producing security.
See notes to financial statements
<PAGE>
Wright EquiFund - Japan
For the Six Months Ended June 30, 1998 (unaudited)
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Shares Description Value
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AUTOMOTIVE - 18.7%
9,000 Honda Motor Co. Ltd. $ 322,116
22,000 Toyota Motor Corp. 572,215
----------
$ 894,331
----------
BEVERAGES - 1.4%
4,000 Mikuni Coca-Cola Bottling $ 68,973
----------
CHEMICALS - 8.1%
9,000 Bridgestone Corp. $ 213,874
10,000 Shin-Etsu Chemical Co., Ltd. 173,882
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$ 387,756
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CONSTRUCTION - 0.8%
7,000 Kaneshita Construction Co.* $ 36,617
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DRUGS, COSMETICS & HEALTHCARE - 9.9%
6,365 Santen Pharmaceutical $ 69,541
10,000 Taisho Pharmaceutical Co. Ltd. 187,647
8,000 Takeda Chem Industries Ltd. 213,874
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$ 471,062
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ELECTRONICS - 29.9%
3,000 Aiwa Co., Ltd. $ 94,548
2,000 Hirose Electronics Co., Ltd. 98,098
1,450 Keyence Corp. 158,631
4,500 Kyocera Corp. 221,047
13,000 Matsushita Electric Ind. Co., Ltd. 210,034
7,000 Murata Mfg. Co. Ltd. 227,205
2,000 Rohm Co., Ltd. 205,760
2,400 Sony Corp. 207,787
----------
$ 1,423,110
----------
MACHINERY & EQUIPMENT - 5.3%
9,000 Canon Inc. $ 205,398
7,000 Tsukishima Kikai Co., Ltd. 49,346
----------
$ 254,744
----------
PAPER - 2.3%
3,000 Uni-Charm Corporation $ 111,719
----------
PRINTING & PUBLISHING - 4.7%
14,000 Dai Nippon Printing Co. Ltd. $ 224,669
----------
RECREATION - 8.7%
6,000 Fuji Photo Film Co., Ltd. $ 209,962
2,200 Nintendo Co., Ltd. 206,731
----------
$ 416,693
----------
RETAILERS - 3.6%
4,460 Familymart $ 170,613
----------
MISCELLANEOUS - 1.8%
3,000 Autobacs Seven Co., Ltd. $ 86,289
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TOTAL INVESTMENTS
(identified cost, $4,515,093) - 95.2% $ 4,546,576
OTHER ASSETS, LESS LIABILITIES - 4.8% 229,135
----------
NET ASSETS - 100.0% $ 4,775,711
===========
* Non-income producing security.
See notes to financial statements
<PAGE>
Wright EquiFund - Mexico
For the Six Months Ended June 30, 1998 (unaudited)
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Shares Description Value
- ------------------------------------------------------------------------------
BEVERAGES - 16.9%
18,000 Fomento Economico Mexicano* $ 561,122
152,500 Grupo Continental SA-Ser CP 509,352
17,600 Panamerican Beverages Inc. 557,084
225,000 Pepsi-Gemex SA de CV 449,399
----------
$ 2,076,957
----------
CONSTRUCTION - 10.7%
97,000 Apasco SA $ 509,731
134,314 Cemex SA - CPO 503,939
345,000 Grupo Cementos Chihuahua-B 293,453
----------
$ 1,307,123
----------
DIVERSIFIED - 15.8%
127,213 Alfa SA-A $ 519,786
106,000 Desc Sociedad de Fomento Indl. 536,963
117,000 Grupo Carso SA 481,313
120,000 Grupo Industrial Saltillo SA 400,801
----------
$ 1,938,863
----------
FOOD - 4.3%
137,000 Grupo Industrial Bimbo-Ser A $ 522,779
----------
METAL PRODUCERS - 4.1%
185,000 Grupo Mexico SA Ser B $ 504,620
----------
METAL PRODUCT MFRS. - 3.1%
30,000 Tubos De Acero $ 384,102
----------
REAL ESTATE & OTHER FINANCIALS - 3.6%
225,000 Grupo Financieri Banamex $ 438,377
----------
RECREATION - 5.3%
35,000 Grupo Televisa SA-Ser CPO $ 654,253
----------
RETAILERS - 13.9%
539,920 Cifra SA de CV B $ 803,087
472,000 Controladora Coml Mexicana 389,918
178,000 Organizacion Soriana SA de CV 511,289
----------
$ 1,704,294
----------
TOBACCO - 4.8%
101,000 Empressa La Moderna Ser ACP $ 586,974
----------
UTILITIES - 11.1%
577,000 Telefonos de Mexico $ 1,365,091
----------
MISCELLANEOUS - 1.7%
342,000 Grupo Posadas Sa De CV* $ 208,657
----------
TOTAL INVESTMENTS
(identified cost, $10,466,948) - 95.3% $11,692,090
OTHER ASSETS, LESS LIABILITIES - 4.7% 577,285
----------
NET ASSETS - 100.0% $12,269,375
===========
* Non-income producing security.
See notes to financial statements
<PAGE>
Wright EquiFund - Netherlands
For the Six Months Ended June 30, 1998 (unaudited)
- ---------------------------------------------------------
Shares Description Value
- ------------------------------------------------------------------------------
BEVERAGES - 5.1%
22,375 Heineken N.V. $ 878,766
----------
CHEMICALS - 5.5%
4,300 Akzo Nobel N.V. $ 955,792
----------
CONSTRUCTION - 5.9%
12,131 Hollandsche Beton Groep N.V. $ 252,829
12,358 Koninklijke Boskalis 183,450
10,614 Volker Wessels Stevin 311,992
9,100 NBM-Amstelland NV* 281,803
----------
$ 1,030,074
----------
DIVERSIFIED - 3.1%
7,600 Internatio-Mueller N.V. $ 254,404
8,611 Stork N.V. 274,279
----------
$ 528,683
----------
ELECTRONICS - 7.3%
11,558 Getronics N.V. $ 599,375
8,000 Philips Electronics NV 672,434
----------
$ 1,271,809
----------
FINANCIAL - 5.4%
39,685 ABN Amro Holdings $ 928,532
----------
FOOD - 17.4%
8,155 CSM N.V. Cert. $ 391,636
18,094 Koninkliijke Numico N.V. 566,549
25,880 Unilever N.V. 2,053,201
----------
$ 3,011,386
----------
MACHINERY & EQUIPMENT - 3.1%
12,412 Oce-Van Der Grinten $ 528,352
----------
METAL PRODUCT MANUFACTURERS - 3.3%
7,661 Hunter Douglas N.V. $ 416,113
4,103 Twentsche Kabel Holding N.V. 157,311
----------
$ 573,424
----------
OIL, GAS & COAL - 15.0%
46,800 Kon Nederlandsche Petroleum Maats $ 2,594,888
----------
PRINTING & PUBLISHING - 11.3%
13,390 Telegraaf (Holdingsmij) - CVA $ 322,508
20,750 Verenigde Nederlandse 753,748
6,437 Wolters Kluwer N.V. 883,411
----------
$ 1,959,667
----------
REAL ESTATE & OTHER FINANCIALS - 16.6%
12,156 Aegon N.V. $ 1,057,615
6,843 Fortis Amev N.V. 986,041
12,678 ING Groep N.V. 830,077
----------
$ 2,873,733
----------
TEXTILES - 1.3%
3,995 Gamma Holding N.V. $ 220,919
----------
UTILITIES - 5.5%
14,962 Koninklijke PTT Nederland NV $ 575,858
14,962 TNT Post Group 382,434
----------
$ 958,292
----------
MISCELLANEOUS - 6.0%
5,131 Fugro N.V. $ 204,292
13,580 Hagemeyer N.V. 587,416
7,600 Koninkliijke Ahrend N.V. 248,053
----------
$ 1,039,761
----------
TOTAL INVESTMENTS
(identified cost, $14,581,339) - 111.8% $19,354,078
OTHER ASSETS, LESS LIABILITIES - (11.8)% (2,039,044)
----------
NET ASSETS - 100.0% $17,315,034
===========
* Non-income producing security.
See notes to financial statements
<PAGE>
Wright EquiFund - Nordic
For the Six Months Ended June 30, 1998 (unaudited)
- ------------------------------------------------------------
Shares Description Value
- ------------------------------------------------------------------------------
AUTOMOTIVE - 1.4%
2,300 Haldex AB $ 41,480
----------
CHEMICALS - 7.7%
1,710 Cheminova Holdings $ 36,614
400 Christian Hansen Holding - B* 52,428
2,850 Norsk Hydro 125,691
----------
$ 214,733
----------
CONSTRUCTION - 6.2%
750 Icopal $ 36,004
2,000 Skanska B Free 89,674
2,100 Superfos AS 56,516
----------
$ 182,194
----------
DIVERSIFIED - 5.5%
4,840 Orkla A/S-B-Aksjer $ 103,723
3,050 Perstorp AB 56,916
----------
$ 160,639
----------
DRUGS, COSMETICS & HEALTHCARE - 13.6%
6,566 Astra AB B Free Shares $ 134,042
630 Coloplast B A/S* 61,862
900 Novo-Nordisk AS 124,116
2,580 Orion A/S-B 78,132
----------
$ 398,152
----------
ELECTRICAL - 9.2%
9,750 Abb AB $ 135,544
7,750 Electrolux 132,976
----------
$ 268,520
----------
ELECTRONICS - 20.2%
3,800 Nokia AB-K Shares $ 280,594
10,600 Ericsson AB B Free 309,324
----------
$ 589,918
----------
FINANCIAL - 4.4%
2,790 Svenska Handelsbanken - "A" $ 129,288
----------
FOOD - 3.4%
1,500 Danisco A/S $ 100,812
----------
MACHINERY & EQUIPMENT - 10.4%
4,030 Atlas Copco AB A Free $ 109,778
3,150 Sandvik AB B Fria 86,399
2,000 Svedala Industri AB 46,340
3,600 Valmet Oyj 62,091
----------
$ 304,608
----------
METAL PRODUCERS - 3.2%
2,250 Hoganas AB $ 50,160
3,000 SSAB Svenskt Stal AB 45,087
----------
$ 95,247
----------
PAPER - 2.1%
6,300 Metsa-Serla Oyj $ 60,877
----------
REAL ESTATE & OTHER FINANCIALS - 2.1%
3,000 OM Gruppen AB Free $ 62,371
----------
TRANSPORTATION - 2.1%
1,000 Finnlines Oyj $ 61,990
----------
UTILITIES - 5.9%
3,760 Graningeverkens $ 60,748
4,200 Sydkraft AB - A Free 113,094
----------
$ 173,842
----------
TOTAL INVESTMENTS
(identified cost, $2,306,437) - 97.4% $ 2,844,671
OTHER ASSETS, LESS LIABILITIES - 2.6% 76,327
----------
NET ASSETS - 100.0% $ 2,920,998
===========
* Non-income producing security.
See notes to financial statements
<PAGE>
Statements of Assets and Liabilities
June 30, 1998 (unaudited)
- -------------------------------------------------
<TABLE>
<CAPTION>
THE WRIGHT EQUIFUND EQUITY TRUST
BELGIUM/ HONG KONG/
LUXEMBOURG CHINA JAPAN
SERIES SERIES SERIES
- ------------------------------------------------------------------------------------------------------------------------------
ASSETS:
Investments --
<S> <C> <C> <C>
Identified cost................................. $ 6,574,208 $ 4,743,102 $ 4,515,093
Unrealized appreciation (depreciation).......... 928,209 (701,080) 31,483
----------- ----------- -----------
Total value (Note 1A)......................... $ 7,502,417 $ 4,042,022 $ 4,546,576
Cash.............................................. 2,683,280 298 276,203
Foreign cash...................................... 4,709,799 24,517 19,605
Receivable for investments sold................... 784,852 590,157 -
Receivable for Fund shares sold................... 1,935,822 114,974 9,025
Receivable from Investment Adviser................ 19,975 14,000 5,000
Dividends receivable.............................. 12,871 7,007 2,193
Tax reclaim receivable............................ 3,931 - 74
Deferred organization expenses (Note 1F).......... 1,368 - 1,173
----------- ----------- -----------
Total Assets.................................. $17,654,315 $ 4,792,975 $ 4,859,849
----------- ----------- -----------
LIABILITIES:
Payable for investments purchased................. $ 5,491,679 $ 24,517 $ 18,004
Payable for Fund shares reacquired................ 1,046,786 21,054 57,663
Payable for open forward foreign currency
exchange contracts (Notes 1I & 7).............. - 102 -
Accrued expenses.................................. 6,305 6,410 8,471
Line of Credit (Note 9)........................... - 166,000 -
----------- ----------- -----------
Total Liabilities............................. $ 6,544,770 $ 218,083 $ 84,138
----------- ----------- -----------
NET ASSETS.......................................... $11,109,545 $ 4,574,892 $ 4,775,711
============ ============ ============
NET ASSETS CONSIST OF:
Paid in capital..................................... $ 9,920,470 $ 7,808,857 $ 8,695,401
Accumulated undistributed net realized gain (loss)
on investment and foreign currency transactions
(computed on the basis of identified cost)......... 275,751 (2,762,866) (3,876,230)
Unrealized appreciation (depreciation) of investments and
translation of assets and liabilities in foreign currencies
(computed on the basis of identified cost)......... 917,684 (701,131) 31,231
Undistributed (distributions in excess of) net investment
income............................................. (4,360) 230,032 (74,691)
----------- ----------- -----------
Net assets applicable to outstanding shares....... $11,109,545 $ 4,574,892 $ 4,775,711
============ ============ ============
SHARES OF BENEFICIAL INTEREST OUTSTANDING........... 874,362 551,204 734,665
============ ============ ============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST............................. $12.71 $8.30 $6.50
============ ============ ============
See notes to financial statements
</TABLE>
<PAGE>
Statements of Assets and Liabilities
June 30, 1998 (unaudited)
- -----------------------------------------------
<TABLE>
<CAPTION>
THE WRIGHT EQUIFUND EQUITY TRUST
MEXICO NETHERLANDS NORDIC
SERIES SERIES SERIES
- --------------------------------------------------------------------------------------------------------------------------------
ASSETS:
Investments -
<S> <C> <C> <C>
Identified cost................................. $10,466,948 $14,581,339 $ 2,306,437
Unrealized appreciation......................... 1,225,142 4,772,739 538,234
----------- ----------- -----------
Total value (Note 1A)......................... $11,692,090 $19,354,078 $ 2,844,671
Cash.............................................. 531,073 441,117 97,500
Foreign cash...................................... - 106,934 -
Receivable for investments sold................... - 338,771 79,448
Receivable for Fund shares sold................... 64,797 50,662 250
Receivable from Investment Adviser................ - - 11,700
Dividends receivable.............................. 1,056 7,388 -
Tax reclaim receivable............................ - 1,662 802
Deferred organization expenses (Note 1F).......... 3,864 - 934
----------- ----------- -----------
Total Assets.................................. $12,292,880 $20,300,612 $ 3,035,305
----------- ----------- -----------
LIABILITIES:
Foreign cash overdraft............................ $ - $ - $ 76,832
Payable for investments purchased................. - 445,604 -
Payable for Fund shares reacquired................ 15,391 2,531,629 30,936
Accrued expenses.................................. 8,114 8,345 6,539
----------- ----------- -----------
Total Liabilities............................. $ 23,505 $ 2,985,578 $ 114,307
----------- ----------- -----------
NET ASSETS.......................................... $12,269,375 $17,315,034 $ 2,920,998
============ ============ ============
NET ASSETS CONSIST OF:
Paid in capital..................................... $12,752,788 $11,842,591 $ 2,128,427
Accumulated undistributed net realized gain (loss) on
investment and foreign currency transactions
(computed on the basis of identified cost)......... (1,662,225) 660,377 216,741
Unrealized appreciation of investments and
translation of assets and liabilities in foreign currencies
(computed on the basis of identified cost)......... 1,225,142 4,772,813 537,975
Undistributed (distributions in excess of) net investment
income............................................. (46,330) 39,253 37,855
----------- ----------- -----------
Net assets applicable to outstanding shares....... $12,269,375 $17,315,034 $ 2,920,998
============ ============ ============
SHARES OF BENEFICIAL INTEREST OUTSTANDING........... 2,062,389 1,438,735 195,883
============ ============ ============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST............................. $5.95 $12.03 $14.91
============ ============ ============
See notes to financial statements
</TABLE>
<PAGE>
Statements of Operations
For the Six Months Ended June 30, 1998 (unaudited)
- ----------------------------------------------------------
<TABLE>
<CAPTION>
THE WRIGHT EQUIFUND EQUITY TRUST
BELGIUM/ HONG KONG/
LUXEMBOURG CHINA JAPAN
SERIES SERIES SERIES
- ---------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Income -
<S> <C> <C> <C>
Dividends...................................... $ 43,935 $ 151,398 $ 19,517
Less Foreign taxes............................. (6,596) - (2,927)
----------- ----------- -----------
Total investment income...................... $ 37,339 $ 151,398 $ 16,590
----------- ----------- -----------
Expenses -
Investment Adviser fee (Note 2)................ $ 9,674 $ 23,889 $ 19,142
Administrator fee (Note 2)..................... 1,290 3,182 2,553
Compensation of Trustees not affiliated with the
Investment Adviser or Administrator (Note 2). 925 750 780
Custodian fee (Note 1E)........................ 28,903 30,838 21,592
Transfer & dividend disbursing agent fees...... 296 1,311 938
Distribution expenses (Note 3)................. 3,225 7,963 6,381
Audit fees..................................... 11,608 15,600 15,600
Legal services................................. 2,613 998 998
Registration costs............................. 11,601 9,550 5,155
Amortization of organization expense (Note 1F). 1,081 - 918
Interest expense............................... 74 7,069 2,124
Printing....................................... 715 2,330 2,330
Miscellaneous.................................. 1,716 5,150 2,412
----------- ----------- -----------
Total expenses............................... $ 73,721 $ 108,630 $ 80,923
----------- ----------- -----------
Deduct-
Preliminary reduction of Investment Adviser fee
(Note 2).................................... $ 9,674 $ 15,240 $ 12,365
Preliminary allocation of expenses to Investment
Adviser (Note 2)............................ 19,975 14,000 5,000
Preliminary reduction of distribution expense by
Principal Underwriter (Note 3).............. 3,225 $ 5,080 $ 4,121
Reduction of custodian fee (Note 1E)......... 15,229 10,086 8,347
----------- ----------- -----------
Total deducted............................. $ 48,103 $ 44,406 $ 29,833
----------- ----------- -----------
Net expenses................................. $ 25,618 $ 64,224 $ 51,090
----------- ----------- -----------
Net investment income (loss)............... $ 11,721 $ 87,174 $ (34,500)
----------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on investment and foreign
currency transactions (identified cost basis)... $ 88,024 $ (1,596,521) $ (692,595)
Change in unrealized appreciation of investments
and translation of assets and liabilities
in foreign currencies........................... 550,658 164,622 347,866
----------- ----------- -----------
Net realized and unrealized gain (loss)...... $ 638,682 $ (1,431,899) $ (344,729)
----------- ----------- -----------
Net increase (decrease) in net assets
from operations............................ $ 650,403 $ (1,344,725) $ (379,229)
============ ============ ============
</TABLE>
See notes to financial statements
<PAGE>
Statements of Operations
For the Six Months Ended June 30, 1998 (unaudited)
- ---------------------------------------------------------
<TABLE>
<CAPTION>
THE WRIGHT EQUIFUND EQUITY TRUST
MEXICO NETHERLANDS NORDIC
SERIES SERIES SERIES
- -------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Income -
<S> <C> <C> <C>
Dividends...................................... $ 174,565 $ 241,018 $ 47,789
Less Foreign taxes............................. - (36,153) (7,168)
----------- ----------- -----------
Total investment income...................... $ 174,565 $ 204,865 $ 40,621
----------- ----------- -----------
Expenses -
Investment Adviser fee (Note 2)................ $ 65,926 $ 62,419 $ 10,894
Administrator fee (Note 2)..................... 8,790 8,323 1,189
Compensation of Trustees not affiliated with the
Investment Adviser or Administrator (Note 2). 763 886 780
Custodian fee (Note 1E)........................ 21,733 31,407 16,990
Transfer & dividend disbursing agent fees...... 6,138 8,912 1,840
Distribution expenses (Note 3)................. 21,975 20,806 3,631
Audit fees..................................... 15,600 1,000 11,400
Legal services................................. 998 977 998
Registration costs............................. 11,425 7,070 4,430
Amortization of organization expense (Note 1F). 1,683 - 1,157
Interest expense............................... 3,525 1,124 751
Printing....................................... 2,330 2,246 2,447
Miscellaneous.................................. 1,023 11,425 1,007
----------- ----------- -----------
Total expenses............................... $ 161,909 $ 156,595 $ 57,514
----------- ----------- -----------
Deduct-
Preliminary reduction of Investment Adviser fee
(Note 2).................................... $ - $ - $ 10,894
Preliminary allocation of expenses to Investment
Adviser (Note 2)............................ - - 11,700
Preliminary reduction of distribution expense by
Principal Underwriter (Note 3).............. - - 3,631
Reduction of custodian fee (Note 1E)......... 7,252 16,037 2,268
----------- ----------- -----------
Total deducted............................. $ 7,252 $ 16,037 $ 28,493
----------- ----------- -----------
Net expenses................................. $ 154,657 $ 140,558 $ 29,021
----------- ----------- -----------
Net investment income...................... $ 19,908 $ 64,307 $ 11,600
----------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain on investment and foreign
currency transactions (identified cost basis)... $ 1,278,766 $ 579,844 $ 185,852
Change in unrealized appreciation (depreciation) of
investments and translation of assets and liabilities
in foreign currencies........................... (6,248,367) 2,630,329 240,443
----------- ----------- -----------
Net realized and unrealized gain (loss)...... $ (4,969,601) $ 3,210,173 $ 426,295
----------- ----------- -----------
Net increase (decrease) in net assets
from operations............................ $ (4,949,693) $ 3,274,480 $ 437,895
============ ============ ============
</TABLE>
See notes to financial statements
<PAGE>
Statements of Changes in Net Assets
- --------------------------------------------
<TABLE>
<CAPTION>
THE WRIGHT EQUIFUND EQUITY TRUST
BELGIUM/ HONG KONG/
LUXEMBOURG SERIES CHINA SERIES JAPAN SERIES
Year Ended Dec. 31 Year Ended Dec. 31 Year Ended Dec. 31
1998(1) 1997 1998(1) 1997 1998(1) 1997
- ----------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From operations --
<S> <C> <C> <C> <C> <C> <C>
Net investment income (loss)....... $ 11,721 $ (44,801) $ 87,174 $ 85,602 $ (34,500) $ (131,348)
Net realized gain (loss)........... 88,024 3,686,662 (1,596,521) 4,142,003 (692,595) (1,503,496)
Change in unrealized appreciation
(depreciation)................... 550,658 (3,234,301) 164,622 (7,192,367) 347,866 1,219,790
----------- ----------- ----------- ----------- ----------- -----------
Increase (decrease) in net assets
from operations................ $ 650,403 $ 407,560 $(1,344,725) $(2,964,762) $ (379,229) $ (415,054)
Distributions to shareholders from
net realized gains................. - (548,401) - - - -
Undistributed net investment
income (loss) included in price of shares
sold and redeemed (Note 1D)........ 3,429 (71,622) (8,341) (559,687) (10,110) (17,450)
Net increase (decrease) from Fund share
transactions (exclusive of amounts
allocated to net investment income)
(Note 4)........................... 8,935,410 (17,452,383) (1,029,595) (23,884,246) 1,357,892 (12,801,227)
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) in net assets $9,589,242 $(17,664,846)$ (2,382,661)$ (27,408,695) $ 968,553 $(13,233,731)
NET ASSETS:
At beginning of period............... 1,520,303 19,185,149 6,957,553 34,366,248 3,807,158 17,040,939
----------- ----------- ----------- ----------- ----------- -----------
At end of period..................... $11,109,545 $ 1,520,303 $ 4,574,892 $ 6,957,553 $ 4,775,711 $ 3,807,158
=========== =========== =========== =========== =========== ===========
UNDISTRIBUTED (DISTRIBUTIONS
IN EXCESS OF) NET INVESTMENT
INCOME INCLUDED IN NET ASSETS
AT END OF PERIOD..................... $ (4,360) $ (19,510) $ 230,032 $ 151,199 $ (74,691) $ (30,081)
============ =========== ============ =========== ============ ===========
(1) For the six months ended June 30, 1998 (unaudited).
</TABLE>
See notes to financial statements
<PAGE>
Statements of Changes in Net Assets
- -------------------------------------------------------
<TABLE>
<CAPTION>
THE WRIGHT EQUIFUND EQUITY TRUST
MEXICO SERIES NETHERLANDS SERIES NORDIC SERIES
Year Ended Dec. 31 Year Ended Dec. 31 Year Ended Dec. 31
1998(1) 1997 1998(1) 1997 1998(1) 1997
- -----------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From operations -
<S> <C> <C> <C> <C> <C> <C>
Net investment income (loss)....... $ 19,908 $ (19,266) $ 64,307 $ (6,673) $ 11,600 $ (35,153)
Net realized gain.................. 1,278,766 2,649,772 579,844 789,108 185,852 1,059,282
Change in unrealized appreciation
(depreciation).................... (6,248,367) 5,057,394 2,630,329 1,018,221 240,443 (859,661)
----------- ----------- ----------- ----------- ----------- -----------
Increase (decrease) in net assets
from operations................. $(4,949,693) $ 7,687,900 $ 3,274,480 $ 1,800,656 $ 437,895 $ 164,468
Distributions to shareholders
from net realized gains............ - - - (698,428) - (708,452)
Undistributed net investment income
(loss) included in price of shares
sold and redeemed (Note 1D)......... (12) 18,637 (1,022) 3,359 (3,070) (1,021)
Net increase (decrease) from Fund
share transactions (exclusive of
amounts allocated to net investment
income) (Note 4)................... (11,249,045) (1,266,076) 1,066,724 4,303,237 (154,217) (3,845,581)
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease)
in net assets................... $(16,198,750) $ 6,440,461 $ 4,340,182 $ 5,408,824 $ 280,608 $ (4,390,586)
NET ASSETS:
At beginning of period............... 28,468,125 22,027,664 12,974,852 7,566,028 2,640,390 7,030,976
----------- ----------- ----------- ----------- ----------- -----------
At end of period..................... $12,269,375 $ 28,468,125 $17,315,034 $12,974,852 $ 2,920,998 $ 2,640,390
============ =========== ============ =========== ============ ===========
UNDISTRIBUTED (DISTRIBUTIONS
IN EXCESS OF) NET INVESTMENT
INCOME INCLUDED IN NET ASSETS
AT END OF PERIOD...................... $ (46,330) $ (66,226) $ 39,253 $ (24,032) $ 37,855 $ 29,325
============ =========== ============ =========== ============ ===========
(1) For the six months ended June 30, 1998 (unaudited).
</TABLE>
See notes to financial statements
<PAGE>
Financial Highlights
- -------------------------------
<TABLE>
<CAPTION>
THE WRIGHT EQUIFUND EQUITY TRUST
BELGIUM/LUXEMBOURG SERIES
Year Ended December 31
- -----------------------------------------------------------------------------------------------------------------------------
1998(7) 1997(6) 1996 1995 1994(2)
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value - beginning of period............... $ 9.540 $ 13.390 $ 12.010 $ 10.240 $ 10.000
-------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income (loss)...................... $ 0.117 $ (0.090) $ 0.171 $ 0.156 $ 0.106
Net realized and unrealized gain.................. 3.053 1.570 2.334 1.904 0.174
-------- -------- -------- -------- --------
Total income from investment operations......... $ 3.170 $ 1.480 $ 2.505 $ 2.060 $ 0.280
-------- -------- -------- -------- --------
Less Distributions:
From net investment income........................ $ - $ - $ (0.100) $ (0.050) $ (0.040)
From net realized gains on investments............ - (5.330) (1.025) (0.240) -
-------- -------- -------- -------- --------
Total distributions............................. $ - $ (5.330) $ (1.125) $ (0.290) $ (0.040)
-------- -------- -------- -------- --------
Net asset value - end of period..................... $ 12.710 $ 9.540 $ 13.390 $ 12.010 $ 10.240
========= ========= ========= ========= =========
Total Return(4)..................................... 33.23% 11.43% 20.99% 20.28% 2.81%
Annualized Ratios/Supplemental Data:
Net assets, end of year (000 omitted)............. $ 11,110 $ 1,520 $ 19,185 $ 14,753 $ 11,437
Ratio of net expenses to average net assets(1) ... 3.17%(3)(5) 2.17% (5) 1.68%(5) 1.76%(5) 1.62%(3)
Ratio of net investment income (loss) to average
net assets...................................... 0.91%(3) (0.70%) 1.20% 1.52% 0.95%(3)
Portfolio Turnover Rate........................... 30% 8% 34% 38% 26%
<FN>
(1) During the six months ended June 30, 1998 and the year ended December 31,
1997, the Investment Adviser and the Principal Underwriter reduced their
fees, and the Investment Adviser was allocated a portion of operating
expenses. Had such actions not been undertaken, net investment loss per
share and the ratios would have been as follows:
1998(7) 1997
Net investment loss per share....................... $ (0.211) $ (0.145)
========= =========
Annualized Ratios (As a percentage of average net assets):
Expenses.......................................... 5.72% (3) 2.60%
========= =========
Net investment loss............................... (1.64%)(3) (1.13%)
========= =========
(2)For the period from start of business, February 15, 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 reinvestment date.
(5)Custodian fees were reduced by credits resulting from cash balances the
Trust maintained with the custodian (Note 1E). 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%,
2.00%, 1.55% and 1.53% for the six months ended June 30, 1998 and the years
ended December 31, 1997, 1996 and 1995, respectively.
(6)Certain per share amounts are based on average shares outstanding.
(7)For the six months ended June 30, 1998 (unaudited).
</FN>
</TABLE>
See notes to financial statements
<PAGE>
Financial Highlights
- ------------------------------
<TABLE>
<CAPTION>
THE WRIGHT EQUIFUND EQUITY TRUST
HONG KONG/CHINA SERIES
Year Ended December 31
- -----------------------------------------------------------------------------------------------------------------------------
1998(6) 1997(5) 1996 1995 1994 1993
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value - beginning of period... $ 11.980 $ 16.470 $ 13.030 $ 13.020 $ 20.990 $ 11.770
-------- -------- -------- -------- -------- --------
Income (loss) from Investment Operations:
Net investment income(1).............. $ 0.157 $ 0.110 $ 0.182 $ 0.368 $ 0.678 $ 0.426
Net realized and unrealized
gain (loss)(3)....................... (3.837) (4.600) 3.458 (0.158) (8.448) 9.394
-------- -------- -------- -------- -------- --------
Total income (loss)
from investment operations........ $ (3.680) $ (4.490) $ 3.640 $ 0.210 $ (7.770) $ 9.820
-------- -------- -------- -------- -------- --------
Less Distributions:
From net investment income............ $ - $ - $ (0.200) $ (0.200) $ (0.200) $ (0.254)
From net realized gains on investments - - - - - (0.346)
-------- -------- -------- -------- -------- --------
Total distributions................. $ - $ - $ (0.200) $ (0.200) $ (0.200) $ (0.600)
-------- -------- -------- -------- -------- --------
Net asset value - end of period......... $ 8.300 $ 11.980 $ 16.470 $ 13.030 $ 13.020 $ 20.990
========= ========= ========= ========= ========= =========
Total Return(2) ........................ (30.72%) (27.20%) 27.96% 1.63% (37.03%) 84.32%
Annualized Ratios/Supplemental Data:
Net assets, end of year (000 omitted). $ 4,575 $ 6,958 $ 34,366 $ 25,399 $ 19,679 $ 16,210
Ratio of net expenses to average
net assets........................... 2.33%(4)(7) 1.96%(4) 1.62%(4) 1.59%(4) 1.41% 2.00%
Ratio of net investment income to
average net assets.................. 2.74%(7) 0.66% 1.81% 3.26% 3.93% 3.01%
Portfolio Turnover Rate............... 155% 56% 65% 100% 131% 76%
<FN>
(1) During certain periods presented, either the Investment Adviser, the
Administrator and/or the Principal Underwriter reduced their fees, and the
Investment Adviser was allocated a portion of operating expenses. Had such
actions not been undertaken, net investment income per share and the ratios
would have been as follows:
1998(6) 1993
-------
Net investment income per share......... $ 0.095 $ 0.419
========= =========
Annualized Ratios (As a percentage of average net assets):
Expenses.............................. 3.41%(7) 2.05%
========= =========
Net investment income................. 1.66%(7) 2.96%
========= =========
(2) Total investment return is calculated assuming a purchase at the net
asset value on the first day and a sale at the net asset value on the last
day of each period reported. Dividends and distributions, if any, are
assumed to be invested at the net asset value on the reinvestment date.
(3) For the years ended December 31, 1997, 1995 and 1992, the per share
amount is not in accord with the net realized and unrealized gain (loss)
for the period because of the timing of sales of Trust shares and the
amounts per share realized and unrealized gains and losses at such times.
(4) Custodian fees were reduced by credits resulting from cash balances the
Trust maintained with the custodian (Note 1E). 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 2.02%,
1.72%, 1.43% and 1.34% for the six months ended June 30, 1998 and the years
ended December 31, 1997, 1996 and 1995, respectively.
(5) Certain per share amounts are based on average shares outstanding. (6)
For the six months ended June 30, 1998 (unaudited).
(7) Annualized.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
Financial Highlights
- -----------------------------
<TABLE>
<CAPTION>
THE WRIGHT EQUIFUND EQUITY TRUST
JAPAN SERIES
Year Ended December 31
- ------------------------------------------------------------------------------------------------------------------------------
1998(7) 1997(6) 1996 1995 1994(2)
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value - beginning of period............... $ 6.840 $ 7.980 $ 8.780 $ 9.660 $ 10.000
-------- -------- -------- -------- --------
Income from Investment Operations:
Net investment loss(1) ........................... $ (0.048) $ (0.100) $ (0.095) $ (0.045) $ (0.050)
Net realized and unrealized loss.................. (0.292) (1.040) (0.705) (0.835) (0.170)
-------- -------- -------- -------- --------
Total loss from investment operations........... $ (0.340) $ (1.140) $ (0.800) $ (0.880) $ (0.220)
-------- -------- -------- -------- --------
Less Distributions:
From net realized gains on investments............ $ - $ - $ - $ - $ (0.120)
-------- -------- -------- -------- --------
Net asset value - end of period..................... $ 6.500 $ 6.840 $ 7.980 $ 8.780 $ 9.660
========= ========= ========= ========= =========
Total Return(4)..................................... (4.97%) (14.16%) (9.11%) (9.11%) (2.17%)
Annualized Ratios/Supplemental Data:
Net assets, end of year (000 omitted)............. $ 4,776 $ 3,807 $ 17,041 $ 21,631 $ 8,653
Ratio of net expenses to average net assets....... 2.33% (3)(5) 2.15% (5) 1.75% (5) 1.81% (5) 1.83% (3)
Ratio of net investment loss to average net assets (1.35%)(3) (1.24%) (1.05%) (0.67%) (0.66%)(3)
Portfolio Turnover Rate........................... 136% 112% 56% 112% 48%
<FN>
(1) During the six months ended June 30, 1998, the Investment Adviser and the
Principal Underwriter reduced their fees, and the Investment Adviser was
allocated a portion of operating expenses. Had such actions not been
undertaken, net investment loss per share and the ratios would have been as
follows:
1998(7)
Net investment loss per share....................... $ (0.078)
=========
Annualized Ratios (As a percentage of average net assets):
Expenses.......................................... 3.17% (3)
=========
Net investment loss............................... (2.19%)(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 reinvestment date.
(5) Custodian fees were reduced by credits resulting from cash balances the
Trust maintained with the custodian (Note 1E). 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%,
1.84%, 1.65% and 1.49% for the six months ended June 30, 1998 and the years
ended December 31, 1997, 1996 and 1995, respectively.
(6) Certain per share amounts are based on average shares outstanding.
(7) For the six months ended June 30, 1998 (unaudited).
</FN>
</TABLE>
See notes to financial statements
<PAGE>
Financial Highlights
- ------------------------------
<TABLE>
<CAPTION>
THE WRIGHT EQUIFUND EQUITY TRUST
MEXICO SERIES
Year Ended December 31
- --------------------------------------------------------------------------------------------------------------------------------
1998(5)(6) 1997(5) 1996 1995 1994(1)
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value - beginning of period............... $ 7.660 $ 5.380 $ 4.220 $ 6.480 $ 10.000
-------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income (loss)...................... $ 0.000+ $ (0.000)+ $ (0.012) $ (0.012) $ (0.040)
Net realized and unrealized gain (loss)........... (1.710) 2.280 1.172 (2.175) (2.970)
-------- -------- -------- -------- --------
Total income (loss) from investment operations.. $ (1.710) $ 2.280 $ 1.160 $ (2.187) $ (3.010)
-------- -------- -------- -------- --------
Less Distributions:
From net realized gains on investments............ $ - $ - $ - $ (0.030) $ (0.510)
In excess of net realized gains on investments.... - - - (0.043) -
-------- -------- -------- -------- --------
Total distributions............................. $ - $ - $ - $ (0.073) $ (0.510)
-------- -------- -------- -------- --------
Net asset value - end of period..................... $ 5.950 $ 7.660 $ 5.380 $ 4.220 $ 6.480
========= ========= ========= ========= =========
Total Return(3)..................................... (22.32%) 42.38% 27.49% (33.37%) (30.91%)
Annualized Ratios/Supplemental Data:
Net assets, end of year (000 omitted)............. $ 12,269 $ 28,468 $ 22,028 $ 32,493 $ 13,422
Ratio of net expenses to average net assets....... 1.84%(2)(4) 1.61%(4) 1.59%(4) 1.72%(4) 1.38% (2)
Ratio of net investment income (loss) to average net
assets.......................................... 0.23%(2) (0.06%) (0.14%) (0.41%) (0.98%)(2)
Portfolio Turnover Rate........................... 8% 113% 63% 110% 85%
<FN>
(1) For the period from the start of business, August 2, 1994 to December 31, 1994.
(2) Annualized.
(3) Total investment return is calculated assuming a purchase at the net
asset value on the first day and a sale at the net asset value on the last
day of each period reported. Dividends and distributions, if any, are
assumed to be invested at the net asset value on the reinvestment date.
(4) Custodian fees were reduced by credits resulting from cash balances the
Trust maintained with the custodian (Note 1E). 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 1.76%,
1.45%, 1.41% and 1.39% for the six months ended June 30, 1998 and the years
ended December 31, 1997, 1996 and 1995, respectively.
(5) Certain per share amounts are based on average shares outstanding.
(6) For the six months ended June 30, 1998 (unaudited).
(+) Amount represents less than 0.001 per share.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
Financial Highlights
- ------------------------------
<TABLE>
<CAPTION>
THE WRIGHT EQUIFUND EQUITY TRUST
NETHERLANDS SERIES
Year Ended December 31
- ---------------------------------------------------------------------------------------------------------------------------------
1998(5) 1997(2) 1996 1995 1994 1993(2)
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value - beginning of period... $ 9.810 $ 8.970 $ 8.590 $ 8.100 $ 10.020 $ 8.460
-------- -------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income (loss)(1)....... $ 0.045 $ (0.006) $ 0.047 $ (0.004) $ (0.060) $ (0.015)
Net realized and unrealized gain...... 2.175 1.396 2.943 1.490 1.150 1.655
-------- -------- -------- -------- -------- --------
Total income
from investment operations........ $ 2.220 $ 1.390 $ 2.990 $ 1.486 $ 1.090 $ 1.640
-------- -------- -------- -------- -------- --------
Less Distributions:
From net investment income............ $ - $ - $ - $ - $ (0.020) $ (0.080)
From net realized gains on investments - (0.550) (2.610) (0.996) (2.990) -
-------- -------- -------- -------- -------- --------
Total distributions................... $ - $ (0.550) $ (2.610) $ (0.996) $ (3.010) $ (0.080)
-------- -------- -------- -------- -------- --------
Net asset value - end of period......... $ 12.030 $ 9.810 $ 8.970 $ 8.590 $ 8.100 $ 10.020
========= ========= ========= ========= ========= =========
Total Return(3) ........................ 22.63% 15.44% 36.56% 18.84% 11.68% 19.52%
Annualized Ratios/Supplemental Data:
Net assets, end of year (000 omitted). $ 17,315 $ 12,975 $ 7,566 $ 7,218 $ 3,951 $ 8,753
Ratio of net expenses to average
net assets(1)....................... 1.88%(4)(6) 1.86%(4) 2.22%(4) 2.26%(4) 1.93% 2.00%
Ratio of net investment income (loss) to
average net assets(1)............... 0.77%(6) (0.05%) 0.83% (0.13%) 0.13% (0.16%)
Portfolio Turnover Rate............... 37% 29% 124% 87% 101% 47%
<FN>
(1) During certain periods presented, either the Investment Adviser, the
Administrator and/or the Principal Underwriter reduced their fees, and the
Investment Adviser was allocated a portion of operating expenses. Had such
actions not been undertaken, net investment income (loss) per share and the
ratios would have been as follows:
1996 1995 1993(2)
- ----------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) per share.. $ 0.038 $ (0.018) $ (0.085)
========= ========= =========
Annualized Ratios (As a percentage of average net assets):
Expenses.............................. 2.38% 2.45% 2.75%
========= ========= =========
Net investment income (loss).......... 0.67% (0.58%) (0.91%)
========= ========= =========
(2) Certain per share amounts are based on average shares outstanding.
(3) Total investment return is calculated assuming a purchase at the net
asset value on the first day and a sale at the net asset value on the last
day of each period reported. Dividends and distributions, if any, are
assumed to be invested at the net asset value on the reinvestment date.
(4) Custodian fees were reduced by credits resulting from cash balances the
Trust maintained with the custodian (Note 1E). 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 1.69%,
1.72%, 1.99% and 2.00% for the six months ended June 30, 1998 and the years
ended December 31, 1997, 1996 and 1995, respectively.
(5) For the six months ended June 30, 1998 (unaudited).
(6) Annualized.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
Financial Highlights
- -------------------------------
<TABLE>
<CAPTION>
THE WRIGHT EQUIFUND EQUITY TRUST
NORDIC SERIES
Year Ended December 31
- --------------------------------------------------------------------------------------------------------------------------------
1998(7) 1997(6) 1996 1995 1994(2)
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value - beginning of period............... $ 12.680 $ 14.780 $ 11.330 $ 9.500 $ 10.000
-------- -------- -------- -------- --------
Income (Loss) from Investment Operations:
Net investment income (loss)(1)................... $ 0.052 $ (0.120) $ (0.064) $ 0.072 $ (0.012)
Net realized and unrealized gain (loss)........... 2.178 0.850 3.694 1.808 (0.118)
-------- -------- -------- -------- --------
Total income (loss)
from investment operations.................... $ 2.230 $ 0.730 $ 3.630 $ 1.880 $ (0.130)
-------- -------- -------- -------- --------
Less Distributions:
From net investment income........................ $ - $ - $ - $ (0.050) $ -
From net realized gain on investments............. - (2.830) (0.180) - (0.366)
From paid-in capital.............................. - - - - (0.004)
-------- -------- -------- -------- --------
Total distributions............................... $ - $ (2.830) $ (0.180) $ (0.050) $ (0.370)
-------- -------- -------- -------- --------
Net asset value - end of period..................... $ 14.910 $ 12.680 $ 14.780 $ 11.330 $ 9.500
========= ========= ========= ========= =========
Total Return(4)..................................... 17.59% 5.22% 32.09% 19.80% (1.19%)
Annualized Ratios/Supplemental Data:
Net assets, end of year (000 omitted)............. $ 2,921 $ 2,640 $ 7,031 $ 3,504 $ 8,712
Ratio of net expenses to average net assets(1).... 2.15%(3)(5) 2.15% (5) 2.21% (5) 2.24%(5) 1.78% (3)
Ratio of net investment income (loss) to average
net assets(1)................................... 0.80%(3) (0.79%) (0.55%) 0.15% (0.35%)(3)
Portfolio Turnover Rate........................... 36% 48% 78% 94% 33%
<FN>
(1) During the six months ended June 30, 1998 and the years ended December
31, 1997, 1996 and 1995, the Investment Adviser and the Principal
Underwriter reduced their fees and the Investment Adviser was allocated a
portion of operating expenses. Had such actions not been undertaken, net
investment loss per share and the ratios would have been as follows:
1998(7) 1997 1996 1995
------ ----- ----- -----
Net investment loss per share....................... $ (0.066) $ (0.272) $ (0.130) $ (0.523)
========= ========= ========= =========
Annualized Ratios (As a percentage of average net assets):
Expenses.......................................... 3.96%(3) 3.15% 2.78% 3.25%
========= ========= ========= =========
Net investment loss............................... (1.01%)(3) (1.79%) (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 reinvestment date.
(5) Custodian fees were reduced by credits resulting from cash balances the
Trust maintained with the custodian (Note 1E). 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%,
2.00%, 1.99% and 2.00% for the six months ended June 30, 1998 and the years
ended December 31, 1997, 1996 and 1995, respectively.
(6) Certain per share amounts are based on average shares outstanding.
(7) For the six months ended June 30, 1998 (unaudited).
</FN>
</TABLE>
See notes to financial statements
<PAGE>
Notes to Financial Statements (Unaudited)
- -----------------------------------------
(1) SIGNIFICANT ACCOUNTING POLICIES
The Wright EquiFund Equity Trust (the Trust) is registered under the
Investment Company Act of 1940, as amended, as an open-end, management
investment company. The Trust presently consists of six active diversified
series (Funds), Wright EquiFund-Belgium/Luxembourg (Belgium/Luxembourg series);
Wright EquiFund - Hong Kong/China (Hong Kong/China series); Wright EquiFund -
Japan (Japan series); Wright EquiFund - Mexico (Mexico series); Wright EquiFund
- - Netherlands (Netherlands series); and Wright EquiFund - Nordic (Nordic
series). The Trust also has 13 inactive series. The following is a summary of
significant accounting policies consistently followed by the Trust in the
preparation of its financial statements. The policies are in conformity with
generally accepted accounting principles.
A. Investment Valuations - Securities, including foreign securities, listed on
securities exchanges or in the NASDAQ National Market are valued at closing sale
prices, if those prices are deemed to be representative of market values at the
close of business. Securities traded on more than one U.S. or foreign securities
exchange are valued at the last sale price on the exchange representing the
principal market for such securities, if those prices are deemed to be
representative of market values at the close of business. Securities traded
over-the-counter, unlisted securities and listed securities for which closing
sale prices are not available are valued at the mean between latest bid and
asked prices or, if such bid and asked prices are not available, at prices
supplied by a pricing agent, unless such prices are deemed not to be
representative of market values at the close of business. Securities for which
market quotations are unavailable or deemed not to be representative of market
values at the close of business and other assets are appraised at their fair
value as determined in good faith according to guidelines established by the
Trustees of the Trust. Short-term obligations with remaining maturities of sixty
days or less are valued at amortized cost, which approximates market value.
B. Foreign Currency Translation - Investment security valuations, other assets,
and liabilities initially expressed in foreign currencies are translated each
business day into U.S. dollars based upon current exchange rates. Purchases and
sales of foreign investment securities and income and expenses are translated
into U.S. dollars based upon currency exchange rates prevailing on the
respective dates of such transactions. The Trust does not isolate that portion
of the results of operations resulting from changes in foreign exchange rates on
investments from the fluctuations arising from changes in market prices of
securities held. Such fluctuations are included with the net realized and
unrealized gain or loss from investments.
C. Taxes - The Trust's policy is to comply with the provisions of the Internal
Revenue Code (the Code) applicable to regulated investment companies and
distribute to shareholders each year all of its taxable income, including any
net realized gain on investments. Accordingly, no provision for federal income
tax is necessary. At December 31, 1997, the Trust, for federal income tax
purposes, had a capital loss carryover of $165,578 for the Hong Kong/China
series, $2,323,550 for the Mexico series and $2,726,369 for the Japan series,
which will reduce taxable income arising from future net realized gain on
investments, if any, to the extent permitted by the Code, and thus will reduce
the amount of the distribution to shareholders which would otherwise be
necessary to relieve the respective Fund of any liability for federal income or
excise tax. Pursuant to the Code, such capital loss carryovers will expire as
follows:
<PAGE>
Dec. Hong Kong/China Mexico Japan
- -------------------------------------------------------------------------------
2002 - - -
2003 $165,578 $2,323,550 $1,460,778
2004 - - -
2005 - - $1,265,591
- -------------------------------------------------------------------------------
At December 31, 1997, net capital losses of $297,432 for the Hong
Kong/China series, $184,705 for the Japan series, and $90,042 for Mexico series
attributable to security transactions incurred after October 31, 1997 are
treated as arising on the first day of the Fund's next taxable year.
Withholding taxes on foreign dividends have been provided for in accordance
with the Trust's understanding of the applicable country's tax rules and rates.
D. Equalization - The Trust follows the accounting practice known as
equalization by which a portion of the proceeds from sales and costs of
redemptions of Fund shares, on a per-share basis, equivalent to the amount of
undistributed net investment income on the date of the transaction is credited
or charged to undistributed net investment income. As a result, undistributed
net investment income per share is unaffected by sales or redemptions of Fund
shares.
E. Expense Reduction - The Fund has entered into an arrangement with its
custodian agent whereby interest earned on uninvested cash balances is used to
offset custodian fees. All significant reductions are reported as a reduction of
expenses in the Statements of Operations.
F. Deferred Organization Expenses - Costs incurred by the Trust in connection
with its organization, including registration costs, are being amortized on the
straight-line basis over five years from commencement of operations of each
series.
G. Other - Investment transactions are accounted for on the date the investments
are purchased or sold. Dividend income and distributions to shareholders are
recorded on the ex-dividend date. However, if the ex-dividend date has passed,
certain dividends from foreign securities are recorded as the Fund is informed
of the ex-dividend date. Interest income is recorded on the accrual basis.
H. Distributions - Differences in the recognition or classification of income
between the financial statements and tax earnings and profits which result in
only temporary over-distributions for financial statement purposes, are
classified as distributions in excess of net investment income or accumulated
net realized gains. Distributions in excess of tax basis earnings and profits
are reported in the financial statements as a return of capital. Permanent
differences between book and tax accounting for certain items may result in
reclassification of these items.
I. Forward Foreign Currency Exchange Contracts - The Trust may enter into
forward foreign currency exchange contracts for the purchase or sale of a
specific foreign currency at a fixed price on a future date. Risks may arise
upon entering these contracts from the potential inability of counterparties to
meet the terms of their contracts and from unanticipated movements in the value
of a foreign currency relative to the U.S. dollar. The Trust will enter into
forward contracts for hedging purposes in connection with purchases and sales of
securities denominated in foreign currencies. The forward foreign currency
exchange contracts are adjusted by the daily forward exchange rate of the
underlying currency and any gains or losses are recorded for financial statement
purposes as unrealized until such time as the contracts have been closed or
offset.
<PAGE>
J. Use of Estimates The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of revenue and
expense during the reporting period. Actual results could differ from those
estimates.
K. Interim Financial Information - The interim financial statements relating to
June 30,1998 and for the six month period then ended have not been audited by
independent certified public accountants, but in the opinion of the Trust's
management, reflect all adjustments, consisting only of normally recurring
adjustments, necessary for the fair presentation of the financial statements.
(2) INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The Trust has engaged The Winthrop Corporation ("Winthrop") to act as
investment adviser to the Funds pursuant to the respective Investment Advisory
contracts. Pursuant to a service agreement between Winthrop and its wholly-owned
subsidiary, Wright Investors' Service, Inc. ("Wright"), Wright furnishes each
Fund with investment management, investment advisory, and other services. For
its services, Wright is compensated based upon a percentage of each series'
average daily net assets which rate is adjusted as average daily net assets
exceed certain levels. For the six months ended June 30, 1998, the effective
annual rate was 0.75% for all Series. To enhance the net income of the
Belgium/Luxembourg, Hong Kong/China, Japan and Nordic Series, Wright made a
preliminary reduction of its management fee by $9,674, 15,240, $12,365, and
$10,894, respectively. In addition, $19,975, $14,000, $5,000, and $11,700 of
expenses of the Belgium/Luxembourg, Hong Kong/China, Japan, and Nordic Series,
respectively, was allocated to the investment adviser on a preliminary basis.
The Trust also has engaged Eaton Vance Management (Eaton Vance) to act as
administrator of the Trust. Under the Administration Agreement, Eaton Vance is
responsible for managing the business affairs of the Trust and is compensated
based upon a percentage of each series' average daily net assets, which rate is
reduced as average daily net assets exceed certain levels. For the six months
ended June 30, 1998, the effective annual rate was 0.10% for the
Belgium/Luxembourg, Hong Kong/China, Japan, Mexico, and Netherland Series and
0.08% for the Nordic Series.
Certain of the Trustees and officers of the Trust are directors/trustees
and/or officers of the above organizations. Except as to Trustees of the Trust
who are not affiliated with Eaton Vance or Wright, Trustees and officers receive
remuneration for their services to the Trust out of the fees paid to Eaton Vance
and Wright.
(3) DISTRIBUTION EXPENSES
The Trustees have adopted a Distribution Plan (the Plan) pursuant to Rule
12b-1 of the Investment Company Act of 1940. The Plan provides that each of the
Funds will pay Wright Investors' Service Distributors, Inc. (Principal
Underwriter), a wholly-owned subsidiary of Winthrop, an annual rate of 0.25% of
each series' average daily net assets for activities primarily intended to
result in the sale of each series' shares. For the six months ended June 30,
1998, the Principal Underwriter made a preliminary reduction of its fees to the
Belgium/Luxembourg, Hong Kong/China, Japan, and Nordic Series by $3,225, $5,080,
$4,121, and $3,631, respectively.
<PAGE>
(4) SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number
of full and fractional shares of beneficial interest (without par value).
Transactions in Trust shares for the periods ended were as follows:
<TABLE>
<CAPTION>
Six Months Ended Year Ended
June 30, 1998 (Unaudited) December 31, 1997
---------------------------------------------------------
Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------
BELGIUM/LUXEMBOURG SERIES
<S> <C> <C> <C> <C>
Sales 1,112,569 $ 13,704,852 110,942 $ 1,529,132
Issued to shareholders in payment
of distributions declared - - 53,671 507,194
Redemptions (397,605) (4,769,442) (1,438,288) (19,488,709)
--------- ------------ --------- ------------
Net Increase (Decrease) 714,964 $ 8,935,410 (1,273,675) $(17,452,383)
========== ============= ========== =============
HONG KONG/CHINA SERIES
Sales 2,483,360 $ 24,649,634 1,590,805 $ 21,714,438
Redemptions (2,512,783) (25,679,229) (3,097,095) (45,598,684)
--------- ------------ --------- ------------
Net Decrease (29,423) $ (1,029,595) (1,506,290) $(23,884,246)
========== ============= ========== =============
JAPAN SERIES
Sales 1,548,667 $ 10,472,027 2,111,367 $ 17,100,885
Redemptions (1,370,409) (9,114,135) (3,689,979) (29,902,162)
--------- ------------ --------- ------------
Net Increase (Decrease) 178,258 $ 1,357,892 (1,578,612) $(12,801,277)
========== ============= ========== =============
MEXICO SERIES
Sales 914,917 $ 6,295,381 7,149,107 $ 49,729,759
Redemptions (2,566,953) (17,544,426) (7,528,473) (50,995,835)
--------- ------------ --------- ------------
Net Decrease (1,652,036) $(11,249,045) (379,366) $ (1,266,076)
========== ============= ========== =============
NETHERLANDS SERIES
Sales 1,310,767 $ 15,010,299 1,342,976 $ 12,946,759
Issued to shareholders in payment
of distributions declared - - 68,767 662,588
Redemptions (1,194,386) (13,943,575) (933,166) (9,306,110)
--------- ------------ --------- ------------
Net Increase 116,381 $ 1,066,724 478,577 $ 4,303,237
========== ============= ========== =============
NORDIC SERIES
Sales 173,324 $ 2,518,664 256,463 $ 3,776,244
Issued to shareholders in payment
of distributions declared - - 51,150 673,306
Redemptions (185,681) (2,672,881) (575,229) (8,295,131)
--------- ------------ --------- ------------
Net Decrease (12,357) $ (154,217) (267,616) $ (3,845,581)
========== ============= ========== =============
</TABLE>
<PAGE>
(5) INVESTMENT TRANSACTIONS
Purchases and sales of investments, other than U.S. Government securities
and short-term obligations, for the six months ended June 30, 1998, were as
follows:
<TABLE>
<CAPTION>
Purchases Sales Purchases Sales
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Belgium/Luxembourg $7,132,371 $1,707,444 Mexico $1,433,708 $11,948,621
Hong Kong/China 9,021,073 9,537,388 Netherlands 9,665,625 6,401,995
Japan 7,887,261 6,751,140 Nordic 987,481 1,314,245
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
(6) FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES
The cost and gross and net unrealized appreciation/depreciation of the
investment securities owned at June 30, 1998, as computed on a federal income
tax basis, are as follows:
<TABLE>
<CAPTION>
Gross Gross Net Unrealized
Aggregate Unrealized Unrealized Appreciation
SERIES Cost Appreciation - Depreciation = (Depreciation)
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
BELGIUM/LUXEMBOURG $ 6,574,208 $ 931,747 - $ 3,538 = $ 928,209
============ ===========
HONG KONG/CHINA $ 4,743,102 $ 165,410 - $ 866,490 = $ (701,080)
============ ===========
JAPAN $ 4,515,093 $ 224,073 - $ 192,590 = $ 31,483
============ ===========
MEXICO $ 10,466,948 $ 2,026,008 - $ 800,866 = $ 1,225,142
============ ===========
NETHERLANDS $ 14,581,339 $ 4,980,647 - $ 207,908 = $ 4,772,739
============ ===========
NORDIC $ 2,306,437 $ 581,184 - $ 42,950 = $ 538,234
============ ===========
</TABLE>
<PAGE>
(7) FINANCIAL INSTRUMENTS
The Funds regularly trade financial instruments with off-balance sheet risk
in the normal course of their investing activities in order to manage exposure
to market risks such as interest rates and foreign currency exchange rates.
These financial instruments include forward foreign currency exchange contracts.
The notional or contractual amounts of these instruments represent the
investment the Funds have in particular classes of financial instruments and
does not necessarily represent the amounts potentially subject to risk. The
measurement of the risks associated with these instruments is meaningful only
when all related and offsetting transactions are considered.
As of June 30, 1998, the Hong Kong/China Series had the following forward
foreign currency exchange contracts open:
<TABLE>
<CAPTION>
SALES
Net
Settlement Contracts In Exchange For Contracts Unrealized
Date to Deliver (in U. S. Dollars) at Value Depreciation
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
7/02/98 Hong Kong Dollar 4,571,948 $589,966 $590,068 $102
----------- ----------- ---------- ----------
TOTAL 4,571,948 $589,966 $590,068 $102
============ ============ =========== ===========
</TABLE>
At June 30, 1998, the Hong Kong/China Series had sufficient cash and/or
securities to cover any commitments under these contracts
(8) RISKS ASSOCIATED WITH FOREIGN
INVESTMENTS
Investing in securities issued by companies whose principal business
activities are outside the United States may involve significant risks not
present in domestic investments. For example, there is generally less publicly
available information about foreign companies, particularly those not subject to
the disclosure and reporting requirements of the U.S. securities laws. Foreign
issuers are generally not bound by uniform accounting, auditing, and financial
reporting requirements and standards of practice comparable to those applicable
to domestic issuers. Investments in foreign securities also involve the risk of
possible adverse changes in investment or exchange control regulations,
expropriation or confiscatory taxation, limitation on the removal of funds or
other assets of the Trust, political or financial instability or diplomatic and
other developments which could affect such investments. Foreign stock markets,
while growing in volume and sophistication, are generally not as developed as
those in the United States, and securities of some foreign issuers (particularly
those located in developing countries) may be less liquid and more volatile than
securities of comparable U.S. companies. In general, there is less overall
governmental supervision and regulation of foreign securities markets,
broker-dealers, and issuers than in the United States.
Settlement of securities transactions in foreign countries may be delayed
and is generally less frequent than in the United States, which
<PAGE>
could affect the liquidity of the Trust's assets. The Trust may be unable
to sell securities where the registration process is incomplete and may
experience delays in receipt of dividends.
(9) LINE OF CREDIT
The Funds participate with other funds managed by Wright in a committed $20
million unsecured line of credit agreement with a bank. The Funds may
temporarily borrow from the line of credit to satisfy redemption requests or
settle investment transactions. Interest is charged to each fund based on its
borrowings at an amount above the federal funds rate. In addition, a fee
computed at an annual rate of 0.10% on the average daily unused portion of the
$20 million line of credit, is allocated among the participating funds at the
end of each quarter. The Funds did not have significant borrowings or allocated
fees during the six month period ended June 30, 1998.
<PAGE>
EquiFund
THE WRIGHT EQUIFUND
EQUITY TRUST
Semi-Annual Report
Officers and Trustees of the Funds
Peter M. Donovan, President and Trustee
H. Day Brigham, Jr., Vice President , Secretary and Trustee
A. M. Moody III, Vice President and Trustee
Judith R. Corchard, Vice President and Trustee
Winthrop S. Emmet, Trustee
Leland Miles, Trustee
Lloyd F. Pierce, Trustee
Richard E. Taber, Trustee
Raymond Van Houtte, Trustee
James L. O'Connor, Treasurer
William J. Austin, Jr., Assistant Treasurer
Administrator
Eaton Vance Management
24 Federal Street
Boston, Massachusetts 02110
Investment Adviser
Wright Investors' Service
1000 Lafayette Boulevard
Bridgeport, Connecticut 06604
Principal Underwriter
Wright Investors' Service Distributors, Inc.
1000 Lafayette Boulevard
Bridgeport, Connecticut 06604
Custodian
Investors Bank & Trust Company
200 Clarendon Street
Boston, Massachusetts 02116
Transfer and Dividend Disbursing Agent
First Data Investor Services Group
Wright Managed Investment Funds
P.O. Box 5156
Westborough, Massachusetts 01581-9698
This report is not authorized for use as an offer of sale or a solicitation of
an offer to buy shares of a mutual fund unless accompanied or preceded by a
Fund's current prospectus.
