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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Annual Report
as of December 31, 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 four separate and distinct non-diversified series or funds.
Wright EquiFund -- Hong Kong/China
Wright EquiFund -- Japan
Wright EquiFund -- Mexico
Wright EquiFund -- Netherlands
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.
TABLE OF CONTENTS
Investment Objective...........Inside Front Cover
Letter To Shareholders......................... 1
Management Discussion.......................... 2
Wright EquiFunds
Dividend Distributions:
Hong Kong/China.............................. 5
Japan........................................ 5
Mexico....................................... 6
Netherlands.................................. 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
Statements of Assets & Liabilities.............11
Statements of Operations.......................12
Statements of Changes in Net Assets............13
Financial Highlights...........................15
Notes to Financial Statements..................19
<PAGE>
LETTER TO SHAREHOLDERS
===============================================================================
February 1999
Dear Shareholders:
Global stock markets were mixed during 1998, as U.S. and European stock prices
rose, while Japan was down slightly in yen terms (but up slightly in dollars)
and the rest of Asia averaged a slight loss in both local currency and dollar
terms. Asia's continuing recessions and currency weakness in Brazil and debt
defaults in Russia spooked global investors. At the height of the global market
weakness last summer and fall, world stock prices were off on the order of 20%
within the space of a few months.
Following the worst quarter for the world's stock markets since 1990, stock
prices came back strongly in the fourth quarter of 1998. Some well-timed
interest rate cuts by the Federal Reserve helped to stem last autumn's flight
from stocks. Once the Fed indicated that it would intervene to prevent the Asian
credit crunch from reaching the U.S., stock prices rebounded with their best
gains since the first quarter of 1987. Central banks around the world followed
the Fed's lead, bringing interest rates lower. Foreign stocks also took their
cue from the U.S., rising virtually everywhere. Except for Japan, which got most
of its gain from a rising yen, Asian markets rebounded strongly in 1998's final
quarter, outdistancing even the U.S. and Euro markets.
Wild swings in investment sentiment - from July's heady optimism to the despair
of August back to renewed bullishness in January 1999 - point up a new
volatility in U.S. and foreign stocks. In fact, over the past 18 months, stock
market fluctuations have been growing steadily. Since last August, as stock
prices have regained momentum, investor confidence has grown into what appears
to be full-blown euphoria in early 1999.
The U.S. economy continues to sail along at a good clip, with consumers showing
little concern over international economic difficulties. U.S. manufacturing has
been the one sector affected by the Asian recession, and the economies of Europe
have shown even more signs of slowing. Still, at this point, it appears more
likely that the U.S. economy will lend support to the struggling economies of
the world in 1999, rather than being dragged down to their levels. Some slowing
in economic growth is almost certainly coming, but Wright still believes that
the global economy will continue to expand modestly, with inflation staying low,
in 1999.
The paragraphs on the following pages discuss the economic, political and market
factors affecting the investment performance of the Wright EquiFund Equity Funds
during 1998 and prospects for 1999.
Sincerely,
/s/ Peter M. Donovan
Peter M. Donovan
President
<PAGE>
MANAGEMENT DISCUSSION
===============================================================================
HONG KONG/CHINA
On the strength of a strong advance in October, Hong Kong stocks rose on the
order of 30% in the fourth quarter of 1998. Despite this broad rebound, the Hong
Kong stock market was weak for all of 1998, the second straight year of negative
stock returns. Concern that China's problems with bad bank loans would spread to
Hong Kong banks, along with Brazil's currency devaluation, worried Hong Kong
investors last year and early in 1999 as well.
The weak economy has resulted in consumer prices declining 0.7% year over year
in November 1998, Hong Kong's first flirtation with deflation in more than 20
years. Property prices were down sharply for the year; the number of
transactions was down 46% from 1997, while the value of transactions fell 61%.
The unemployment rate rose to 5.5% for the three months through November from
5.2% in the three months to October. Hong Kong banks cut lending rates twice
during December for a total of 25 basis points. The prime rate is now down to
9.0%, practically back to its pre-crisis level of 8.5%.
JAPAN
The FT/S&P Actuaries total return index for Japanese stocks fell 8% in terms of
yen during 1998, the weakest local currency performance among the G-7 stock
markets. In dollars, the Japanese stock market returned about 7% for the year,
due mostly to the better-than-25% appreciation of the yen against the dollar
from July through December 1998. The yen's big rise in the fourth quarter
transformed a relatively modest 5% return on Japanese stocks (the rest of the
world averaged a 21% advance) into a 27% return for dollar-based investors.
Ten-year Japanese government bond yields declined sharply over the first three
quarters of 1998, hitting a low of 0.7% in September before rebounding to 2.2%
at year end 1998. The recent rise in rates - which partly explains the rise in
the yen and the relative weakness of stocks - stems from the government's
ballooning budget deficit. In an effort to lift the economy out of the worst
recession in the postwar period, policy makers have fashioned a massive fiscal
stimulus; the prospect of a huge increase in government borrowing has lifted
yields on government bonds. At the same time, evidence of economic recovery
remains sparse. If rates stay high or go higher, it could easily intensify
Japan's credit crunch, while the increase in value of the yen might hurt
exports, the one sector providing support to the economy. In January 1999,
Japanese authorities intervened in the currency market to buy dollars, trying to
limit the yen's rise, and they are also beginning to take steps to stem the rise
in bond yields. Long-term recovery in the Japanese economy and stock market will
probably require monetary easing, lower interest rates and, most important,
reform and liberalization of the Japanese economic system and markets. Consensus
forecasts do not yet reflect any significant turnaround in Japan's economy: real
GDP is expected to decline 0.7% in 1999 on top of a 2.8% drop estimated for
1998.
MEXICO
Although Mexican stock prices and the value of the peso strengthened late in the
year, 1998's full-year performance was negative: as measured by the FT/S&P
Mexican total return index, stocks lost 21% in pesos (35% in dollars) last year.
The peso depreciated nearly 20% in value compared with the U.S. dollar last
year, and Brazil's devaluation in January has undermined the stabilization seen
in the peso and in Mexican stock prices during the fourth quarter.
<PAGE>
In order to hold the government budget deficit at 1.25% of GDP despite falling
oil revenues in 1998, Mexico's Congress passed what has been called the most
austere budget in modern times. Congress also passed a bill lifting restrictions
on foreign ownership of large Mexican banks, which have still not completely
recovered from the 1995 financial crisis. The new law ought to make it easier
for the banks to raise new capital. In December, Mexican consumer prices rose at
their fastest rate in two years, pushing the year's inflation up to 19%.
Economists expect 1999 inflation to exceed the government's 13% target; the
government's 3% GDP growth target for 1999 looks to be more realistic.
NETHERLANDS
Preliminary reports indicate that the Dutch economy grew 3.8% in 1998, the best
growth since 1990. Consumer spending has been strong, while manufacturing had a
"very modest year," according to the government statistics bureau. Citing weaker
exports, the central bank expects growth to slow to 2% this year, while the
government forecasts 2 1/4%, and private economists are targeting 2 1/2%. There
has been some concern about rising inflation higher taxes and strong consumer
demand have pushed prices up - but slowing economic growth is expected to keep
the price rise under 2% during 1999 and maybe closer to 1%. The Dutch jobs
market remains tight, with the unemployment rate slipping to 3.7% in December,
down from 4.9% a year earlier and the lowest level in 17 years.
The Dutch stock market ended 1998 on a strong note, with the FT/S&P Actuaries
total return index for the Netherlands rising 23% in guilders (24% in dollars)
during the fourth quarter. On the basis of its late strength, the Dutch market
advanced 22% (32%) for all of 1998, slightly ahead of the European region's
average gain of 21.5% (27%). Dutch stocks opened 1999 with a 3.4% decline in
January (6.6% in dollars), the weakest performance of the 11 Euro markets.
---------------------------------
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>
THE WRIGHT EQUIFUND EQUITY TRUST
WRIGHT EQUIFUND - HONG KONG/CHINA
Growth of $10,000 invested 7/1/90* through 12/31/98
Annual Total Return
Lst 1 Yr Lst 5 yr Since Inception*
EquiFund - Hong Kong/China -18.7% -13.5% +1.7%
Hang Seng Index -0.7% +0.9% +19.0%
FT-World ex US Index +16.2% +8.3% +6.5%
The cumulative total return of a U.S. $10,000 investment in the EQUIFUND - HONG
KONG/CHINA at inception on 7/1/90 would have grown to $11,547 by December 31,
1998.
The following plotting points are used for comparison in the total investment
return mountain chart.
Date EquiFund Hang Seng FT-World
Hong Kong/China Index ex US Index
07/01/90 $10,000 $10,000 $10,000
12/31/90 $8,280 $9,374 $8,813
12/31/91 $11,123 $13,861 $9,987
12/31/92 $12,929 $18,642 $8,682
12/31/93 $23,830 $41,893 $11,483
12/31/94 $15,005 $29,788 $12,443
12/31/95 $15,250 $38,336 $13,743
12/31/96 $19,515 $53,305 $14,637
12/31/97 $14,195 $44,039 $14,754
12/31/98 $11,547 $43,722 $17,139
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THE WRIGHT EQUIFUND EQUITY TRUST
WRIGHT EQUIFUND - JAPAN
Growth of $10,000 invested 2/1/94* through 12/31/98
Annual Total Return
Lst 1 Yr Since Inception*
EquiFund - Japan +5.4% -6.2%
Tokyo SE Index +8.2% -7.9%
FT-World ex US Index +16.2% +6.7%
The cumulative total return of a U.S. $10,000 investment in the EQUIFUND - JAPAN
at inception on 2/1/94 would have declined to $7,302 by December 31, 1998.
The following plotting points are used for comparison in the total investment
return mountain chart.
Date EquiFund Tokyo SE FT-World
Japan Index ex US Index
02/01/94 $10,000 $10,000 $10,000
12/31/94 $9,783 $10,409 $9,993
12/31/95 $8,892 $10,244 $11,037
12/31/96 $8,082 $8,601 $11,755
12/31/97 $6,927 $6,168 $11,849
12/31/98 $7,302 $6,671 $13,764
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THE WRIGHT EQUIFUND EQUITY TRUST
WRIGHT EQUIFUND - MEXICO
Growth of $10,000 invested 8/1/94* through 12/31/98
Annual Total Return
Lst 1 Yr Since Inception*
EquiFund - Mexico -37.2% -13.6%
Mexican Bolsa IPC Index -38.3% -12.7%
FT-World ex US Index +16.2% +7.1%
The cumulative total return of a U.S.$10,000 investment in the EQUIFUND- MEXICO
at inception on 8/1/94 would have declined to $5,247 by December 31, 1998.
The following plotting points are used for comparison in the total investment
return mountain chart.
Date EquiFund Mexican Bolsa IPC FT-World
Mexico Index ex US Index
08/01/94 $10,000 $10,000 $10,000
12/31/94 $6,909 $6,603 $9,812
12/31/95 $4,604 $4,958 $10,837
12/31/96 $5,869 $5,849 $11,541
12/31/97 $8,356 $8,898 $11,634
12/31/98 $5,247 $5,488 $13,514
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THE WRIGHT EQUIFUND EQUITY TRUST
WRIGHT EQUIFUND - NETHERLANDS
Growth of $10,000 invested 7/1/90* through 12/31/98
Annual Total Return
Lst 1 Yr Lst 5 yr Since Inception*
EquiFund - Netherlands +24.5% +21.1% +12.3%
CBS Total Return General Index +31.8% +25.8% +20.6%
FT-World ex US Index +16.2% +8.3% +6.5%
The cumulative total return of a U.S. $10,000 investment in the EQUIFUND -
NETHERLANDS at inception on 7/1/90 would have grown to $26,901 by December 31,
1998.
The following plotting points are used for comparison in the total investment
return mountain chart.
Date EquiFund CBS Total Return FT-World
Netherlands General Index ex US Index
07/01/90 $10,000 $10,000 $10,000
12/31/90 $8,570 $9,548 $8,813
12/31/91 $9,427 $11,197 $9,987
12/31/92 $8,654 $11,340 $8,682
12/31/93 $10,344 $15,636 $11,483
12/31/94 $11,552 $17,898 $12,443
12/31/95 $13,728 $23,150 $13,743
12/31/96 $18,704 $30,004 $14,637
12/31/97 $21,614 $37,350 $14,754
12/31/98 $26,901 $49,216 $17,139
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NOTES: *: For comparison with other averages, the investment results are shown
from the closest month end since each Fund's inception. The investment results
of EquiFund are net of all fees and expenses including withheld dividend taxes
charged to the Fund. No fees, expenses or taxes have been deducted from the
other averages. The Total Investment Return is the % return of an initial U.S.
$10,000 investment made at the beginning of the period to the ending redeemable
value assuming all dividends and distributions are reinvested. Past performance
is not predictive of future performance.
<PAGE>
DIVIDEND DISTRIBUTIONS
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<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
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 - HONG KONG/CHINA
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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%
Jul. 98 7.73 118.49 915.92 -59.74% -9.89% -1.08%
Aug. 98 6.82 118.49 808.09 -59.31% -13.40% -2.58%
Sep. 98 7.51 118.49 889.85 -57.62% -11.99% -1.41%
Oct. 98 9.66 118.49 1,144.60 -21.97% -10.33% 1.63%
Nov. 98 10.07 118.49 1,193.18 -15.66% -9.56% 2.12%
Dec. 98 9.21 0.55 0.05814 125.38 1,154.73 -18.65% -13.49% 1.71%
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WRIGHT EQUIFUND - JAPAN
- -----------------------------
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%
Jul. 98 6.52 101.28 660.31 -28.59% - -8.89%
Aug. 98 6.03 101.28 610.69 -25.09% - -10.29%
Sep. 98 6.00 101.28 607.65 -28.23% - -10.21%
Oct. 98 6.49 101.28 657.28 -17.32% - -8.53%
Nov. 98 6.91 101.28 699.81 -4.95% - -7.18%
Dec. 98 7.21 101.28 730.19 5.41% - -6.25%
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<PAGE>
WRIGHT EQUIFUND - MEXICO
- -----------------------------
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%
Jul. 98 6.01 109.09 655.63 -19.87% - -10.03%
Aug. 98 3.84 109.09 418.90 -45.69% - -19.21%
Sep. 98 4.32 109.09 471.27 -47.06% - -16.54%
Oct. 98 4.85 109.09 529.08 -27.61% - -13.92%
Nov. 98 4.71 109.09 513.81 -34.94% - -14.26%
Dec. 98 4.81 109.09 524.72 -37.21% - -13.59%
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WRIGHT EQUIFUND - NETHERLANDS
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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%
Jul. 98 12.32 220.32 2,714.40 21.55% 24.62% 13.16%
Aug. 98 11.15 220.32 2,456.62 19.25% 19.76% 11.64%
Sep. 98 10.39 220.32 2,289.17 2.99% 18.45% 10.56%
Oct. 98 10.84 220.32 2,388.32 11.86% 18.65% 11.02%
Nov. 98 11.42 220.32 2,516.11 17.61% 20.09% 11.59%
Dec. 98 11.70 0.477 0.043562 229.92 2,690.09 24.46% 21.07% 12.35%
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</TABLE>
<PAGE>
Wright EquiFund - Hong Kong/China
Portfolio of Investments as of December 31, 1998
===============================================================================
Shares Description Value
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AEROSPACE - 2.4%
138,800 Hong Kong Aircraft Engineering Co. $ 189,916
----------
DIVERSIFIED - 14.3%
109,000 Hutchison Whampoa Ltd. $ 770,330
141,000 New World Development 354,912
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$ 1,125,242
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ELECTRICAL - 5.2%
158,800 Johnson Electric Holdings-500 $ 407,915
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FINANCIAL - 32.8%
202,004 Bank of East Asia Hong Kong $ 352,014
207,000 Guoco Group Ltd. 348,696
40,900 Hang Seng Bank 365,603
48,585 HSBC Holdings PLC 1,210,392
89,640 Wing Lung Bank 311,258
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$ 2,587,963
----------
PRINTING & PUBLISHING - 4.5%
700,000 South China Morning Post(Hold.) Ltd. $ 359,171
----------
REAL ESTATE & OTHER FINANCIALS - 14.0%
48,000 Cheung Kong (Holdings) Ltd. $ 345,424
71,000 Henderson Land Devel. Co. Ltd. 367,510
53,193 Sun Hung Kai Properties Ltd. 387,944
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$ 1,100,878
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RETAILERS - 4.3%
500,000 Jardine Int'l. Motor Holdings $ 198,464
455,000 Sime Darby Hong Kong Limited 138,021
----------
$ 336,485
----------
TRANSPORTATION - 4.6%
369,000 Cathay Pacific Airways Ltd. $ 366,762
----------
UTILITIES - 13.7%
286,716 Hong Kong & China Gas $ 364,548
120,000 Hong Kong Electric Holdings Ltd. 364,012
200,490 Hong Kong Telecom 350,670
----------
$ 1,079,230
----------
MISCELLANEOUS - 4.8%
176,000 Citic Pacific Ltd. $ 379,399
----------
WARRANTS - 0.0%
9,078 Hong Kong & China Gas* $ 0
-----------
Total Investments
(identified cost, $6,641,114) - 100.6% $ 7,932,961
Other Assets, Less Liabilities - (0.6%) (50,028)
----------
Net Assets - 100.0% $ 7,882,933
===========
* Non-income producing security.
See notes to financial statements
<PAGE>
Wright EquiFund - Japan
Portfolio of Investments as of December 31, 1998
===============================================================================
Shares Description Value
- -------------------------------------------------------------------------------
AUTOMOTIVE - 19.1%
9,000 Honda Motor Co. Ltd. $ 294,107
20,000 Toyota Motor Corp. 540,826
----------
$ 834,933
----------
BEVERAGES - 2.0%
4,000 Mikuni Coca-Cola Bottling $ 85,088
----------
CHEMICALS - 7.5%
7,000 Bridgestone Corp. $ 158,152
7,000 Shin-Etsu Chemical Co., Ltd. 167,709
----------
$ 325,861
----------
DRUGS, COSMETICS & HEALTHCARE - 10.3%
3,365 Santen Pharmaceutical $ 65,060
7,000 Taisho Pharmaceutical Co. Ltd. 191,755
5,000 Takeda Chem Industries Ltd. 191,579
----------
$ 448,394
----------
ELECTRONICS - 24.7%
2,000 Aiwa Co., Ltd. $ 52,497
1,500 Hirose Electronics Co., Ltd. 104,510
850 Keyence Corp. 104,069
3,000 Kyocera Corp. 157,756
4,000 Murata Mfg. Co. Ltd. 155,730
3,200 Sony Corp. 231,974
3,000 TDK Corp. 272,968
----------
$ 1,079,504
----------
MACHINERY & EQUIPMENT - 5.5%
9,000 Canon Inc. $ 191,447
7,000 Tsukishima Kikai Co., Ltd. 50,929
----------
$ 242,376
----------
PAPER - 2.1%
2,000 Uni-Charm Corporation $ 93,367
----------
PRINTING & PUBLISHING - 4.0%
11,000 Dai Nippon Printing Co. Ltd. $ 174,597
----------
RECREATION - 8.2%
5,000 Fuji Photo Film Co., Ltd. $ 184,973
1,800 Nintendo Co., Ltd. 172,818
----------
$ 357,791
----------
RETAILERS - 6.9%
2,460 Familymart $ 122,209
2,000 Shimamura Co., Ltd. 90,902
2,800 York-Benimaru Co., Ltd. 88,540
----------
$ 301,651
----------
MISCELLANEOUS - 7.2%
3,000 Autobacs Seven Co., Ltd. $ 100,414
300 Bellsystem24 Inc. 66,590
3,000 Hoya Corp. 145,336
----------
$ 312,340
----------
Total Investments
(identified cost, $3,690,547) - 97.5% $ 4,255,902
Other Assets, Less Liabilities - 2.5% 108,916
----------
Net Assets - 100.0% $ 4,364,818
===========
See notes to financial statements
<PAGE>
Wright EquiFund - Mexico
Portfolio of Investments as of December 31, 1998
================================================================================
Shares Description Value
- -------------------------------------------------------------------------------
BEVERAGES - 16.1%
150,000 Fomento Economico Mexicano $ 406,613
122,500 Grupo Continental SA-Ser CP 296,201
18,600 Panamerican Beverages Inc. 405,713
225,000 Pepsi-Gemex SA de CV 295,305
----------
$ 1,403,832
----------
CHEMICALS - 4.4%
66,000 Empresas La Moderna SA De CV $ 389,137
----------
CONSTRUCTION - 9.7%
87,000 Apasco SA $ 306,542
174,314 Cemex SA - CPO 375,730
345,000 Grupo Cementos Chihuahua-B 165,447
----------
$ 847,719
----------
DIVERSIFIED - 16.4%
147,213 Alfa SA-A $ 403,517
455,000 Desc Sociedad de Fomento Indl. 385,866
117,000 Grupo Carso SA 396,890
100,000 Grupo Industrial Saltillo SA 249,369
----------
$ 1,435,642
----------
FOOD - 6.3%
180,000 Grupo Industrial Bimbo-Ser A $ 345,280
250,000 Grupo Industrial Maseca SA De CV 201,918
----------
$ 547,198
----------
METAL PRODUCERS - 4.1%
160,000 Grupo Mexico SA Ser B $ 355,376
----------
METAL PRODUCTS MFRS. - 2.6%
35,000 Tubos De Acero $ 226,148
----------
REAL ESTATE & OTHER FINANCIALS - 4.9%
325,000 Grupo Financieri Banamex* $ 425,896
----------
RECREATION - 4.3%
30,000 Grupo Televisa SA-Ser CPO $ 374,659
----------
RETAILERS - 15.2%
509,920 Cifra SA de CV B $ 617,773
447,000 Controladora Coml Mexicana 315,901
123,000 Organizacion Soriana SA de CV 397,375
----------
$ 1,331,049
----------
UTILITIES - 12.7%
457,000 Telefonos de Mexico $ 1,107,320
----------
Total Investments
(identified cost, $9,010,177) - 96.7% $ 8,443,976
Other Assets, Less Liabilities - 3.3% 292,626
----------
Net Assets - 100.0% $ 8,736,602
===========
* Non-income producing security.
See notes to financial statements
<PAGE>
Wright EquiFund - Netherlands
Portfolio of Investments as of December 31, 1998
================================================================================
Shares Description Value
- -------------------------------------------------------------------------------
BEVERAGES - 3.7%
12,075 Heineken N.V. $ 725,514
----------
CHEMICALS - 4.8%
16,000 Akzo Nobel N.V. $ 727,389
300 Deceuninck Plastics Inds. SA 96,977
1,900 Tessenderlo Chemie SA 109,922
----------
$ 934,288
----------
CONSTRUCTION - 2.8%
1,150 Cimenteries CBR Cementbedrijven SA $ 113,104
11,158 Koninklijke Boskalis Westminster NV 179,767
10,900 NBM-Amstelland NV 255,591
----------
$ 548,462
----------
DIVERSIFIED - 3.0%
9,200 Internatio-Mueller N.V. $ 227,468
10,711 Stork N.V. 244,325
20 UCB SA 122,650
----------
$ 594,443
----------
ELECTRONICS - 10.4%
430 Barco (Belgian American Radio Corp.) $ 120,654
7,000 Cap Gemini NV 487,584
13,058 Getronics N.V. 645,714
10,000 Philips Electronics NV 669,963
900 Telinfo NV 105,699
----------
$ 2,029,614
----------
FINANCIAL - 4.3%
34,342 ABN Amro Holdings $ 721,279
1,500 KBC Bancassurance Holding SA 118,021
----------
$ 839,300
----------
FOOD - 16.2%
8,255 CSM N.V. Cert. $ 475,803
16,671 Koninkliijke Numico N.V. 793,351
22,280 Unilever N.V. 1,901,388
----------
$ 3,170,542
----------
MACHINERY & EQUIPMENT - 2.3%
12,353 Oce-Van Der Grinten $ 443,360
----------
METAL PRODUCTS MANUFACTURERS - 1.9%
11,500 Hunter Douglas N.V. $ 380,337
----------
OIL, GAS & COAL - 9.5%
35,300 Kon Nederlandsche Petroleum Maats $ 1,754,958
225 Petrofina SA 102,509
----------
$ 1,857,467
----------
PRINTING & PUBLISHING - 9.0%
12,190 Telegraaf (Holdingsmij) - CVA $ 327,322
19,450 Verenigde Nederlandse 732,206
3,237 Wolters Kluwer N.V. 691,565
----------
$ 1,751,093
----------
REAL ESTATE & OTHER FINANCIALS - 14.7%
6,000 Aegon N.V. $ 735,683
1,360 Algemene Maatschappij Voor Nijver, NV 114,087
1,300 Compagnie Benelux Paribas SA 109,242
350 Fortis AG 126,049
9,743 Fortis Amev NV 806,089
12,590 ING Groep N.V. 766,499
400 Socfinasia SA 105,294
2,200 Sofina SA 120,278
----------
$ 2,883,221
----------
RETAILERS - 1.8%
140 Colruyt ETN FR N.V. $ 116,633
1,300 Etablis. Delhaize Freres & Cie Le Lion 114,319
2,400 GIB SA 124,964
----------
$ 355,916
----------
TRANSPORTATION - 4.5%
27,055 TNT Post Groep N.V. $ 870,329
----------
UTILITIES - 2.5%
700 Electrabel SA $ 305,756
940 Tractebel SA 181,365
----------
$ 487,121
----------
MISCELLANEOUS - 6.2%
275 Ackermans & Van Haaren SA $ 111,368
7,431 Fugro N.V. 173,852
20,000 Hagemeyer N.V. 729,516
8,800 Koninkliijke Ahrend N.V. 200,734
----------
$ 1,215,470
----------
Total Investments
(identified cost, $13,275,243) - 97.6% $19,086,477
Other Assets, Less Liabilities - 2.4% 463,423
----------
Net Assets - 100.0% $19,549,900
===========
See notes to financial statements
<PAGE>
Statements of Assets and Liabilities
December 31, 1998
================================================================================
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
THE WRIGHT EQUIFUND EQUITY TRUST
HONG KONG/
CHINA JAPAN MEXICO NETHERLANDS
SERIES SERIES SERIES SERIES
- ----------------------------------------------------------------------------------------------------------------------------------
ASSETS:
Investments --
Identified cost................................. $ 6,641,114 $ 3,690,547 $ 9,010,177 $13,275,243
Unrealized appreciation (depreciation).......... 1,291,847 565,355 (566,201) 5,811,234
----------- ----------- ----------- -----------
Total value (Note 1A)......................... $ 7,932,961 $ 4,255,902 $ 8,443,976 $19,086,477
Cash.............................................. 83,207 284 319,830 630,193
Foreign cash...................................... 135,902 - - -
Receivable for investments sold................... - 416,422 - -
Receivable for Fund shares sold................... 977 7,481 18,790 43,286
Receivable from Investment Adviser................ 3,200 750 - -
Dividends receivable.............................. 17,366 2,291 1,242 768
Tax reclaim receivable............................ - 80 - 5,264
Deferred organization expenses (Note 1F).......... - 240 2,152 -
----------- ----------- ----------- -----------
Total Assets.................................. $ 8,173,613 $ 4,683,450 $ 8,785,990 $19,765,988
----------- ----------- ----------- -----------
LIABILITIES:
Payable for investments purchased................. $ 135,902 $ 270,783 $ - $ -
Payable for Fund shares reacquired................ 145,267 5,078 39,603 176,564
Payable for open forward foreign currency
exchange contracts (Notes 1I & 7).............. - 2,721 - -
Accrued expenses.................................. 9,511 6,050 9,785 39,524
Line of Credit (Note 9)........................... - 34,000 - -
----------- ----------- ----------- -----------
Total Liabilities............................. $ 290,680 $ 318,632 $ 49,388 $ 216,088
----------- ----------- ----------- -----------
NET ASSETS.......................................... $ 7,882,933 $ 4,364,818 $ 8,736,602 $19,549,900
============ ============ ============ ============
NET ASSETS CONSIST OF:
Paid in capital..................................... $ 9,983,587 $ 7,771,643 $11,445,421 $13,823,233
Accumulated undistributed net realized loss
on investment and foreign currency transactions
(computed on the basis of identified cost)......... (3,716,482) (3,951,719) (2,161,252) (17,432)
Unrealized appreciation (depreciation) of investments and
translation of assets and liabilities in foreign currencies
(computed on the basis of identified cost)......... 1,291,803 563,016 (566,204) 5,811,227
Undistributed (distributions in excess of) net investment
income............................................. 324,025 (18,122) 18,637 (67,128)
----------- ----------- ----------- -----------
Net assets applicable to outstanding shares....... $ 7,882,933 $ 4,364,818 $ 8,736,602 $19,549,900
============ ============ ============ ============
SHARES OF BENEFICIAL INTEREST OUTSTANDING........... 855,475 605,259 1,814,850 1,670,277
============ ============ ============ ============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST (NOTE 10)................... $9.21 $7.21 $4.81 $11.70
============ ============ ============ ============
See notes to financial statements
</TABLE>
<PAGE>
Statements of Operations
For the Year Ended December 31, 1998
================================================================================
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
THE WRIGHT EQUIFUND EQUITY TRUST
HONG KONG/
CHINA JAPAN MEXICO NETHERLANDS
SERIES SERIES SERIES SERIES
- -------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Income -
Dividends...................................... $ 269,393 $ 30,756 $ 254,518 $ 328,941
Less Foreign taxes............................. - (4,613) - (49,341)
----------- ----------- ----------- -----------
Total investment income...................... $ 269,393 $ 26,143 $ 254,518 $ 279,600
----------- ----------- ----------- -----------
Expenses -
Investment Adviser fee (Note 2)................ $ 46,869 $ 36,190 $ 103,799 $ 123,437
Administrator fee (Note 2)..................... 6,256 4,833 13,837 16,458
Compensation of Trustees not affiliated with the
Investment Adviser or Administrator (Note 2). 410 1,893 1,960 2,005
Custodian fee (Note 1E)........................ 57,383 38,563 42,118 62,954
Transfer & dividend disbursing agent fees...... 2,684 2,912 7,270 5,844
Distribution expenses (Note 3)................. 15,623 12,064 34,600 41,146
Audit fees..................................... 17,100 17,100 17,100 14,523
Legal services................................. 2,357 2,202 2,202 6,312
Registration costs............................. 16,688 11,493 15,263 12,385
Amortization of organization expense (Note 1F). - 1,851 3,395 -
Interest expense............................... 10,240 3,172 4,590 8,426
Printing....................................... 13,113 6,833 13,085 14,324
Miscellaneous.................................. 3,390 2,150 2,660 2,568
----------- ----------- ----------- -----------
Total expenses............................... $ 192,113 $ 141,256 $ 261,879 $ 310,382
----------- ----------- ----------- -----------
Deduct-
Reduction of Investment Adviser fee
(Note 2).................................... $ 27,221 $ 22,412 $ - $ -
Allocation of expenses to Investment
Adviser (Note 2)............................ 3,200 750 - -
Reduction of distribution expense by
Principal Underwriter (Note 3).............. 12,740 9,805 - -
Reduction of custodian fee (Note 1E)......... 24,726 11,721 13,817 26,735
----------- ----------- ----------- -----------
Total deducted............................. $ 67,887 $ 44,688 $ 13,817 $ 26,735
----------- ----------- ----------- -----------
Net expenses................................. $ 124,226 $ 96,568 $ 248,062 $ 283,647
----------- ----------- ----------- -----------
Net investment income (loss)............... $ 145,167 $ (70,425) $ 6,456 $ (4,047)
----------- ----------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on investment and foreign
currency transactions (identified cost basis)... $ (2,557,232) $ (758,543) $ 714,163 $ 894,501
Change in unrealized appreciation (depreciation) of
investments and translation of assets and liabilities
in foreign currencies........................... 2,157,556 879,651 (8,039,713) 3,668,743
----------- ----------- ----------- -----------
Net realized and unrealized gain (loss)...... $ (399,676) $ 121,108 $ (7,325,550) $ 4,563,244
----------- ----------- ----------- -----------
Net increase (decrease) in net assets
from operations............................ $ (254,509) $ 50,683 $ (7,319,094) $ 4,559,197
============ ============ ============ ============
See notes to financial statements
</TABLE>
<PAGE>
Statements of Changes in Net Assets
================================================================================
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
THE WRIGHT EQUIFUND EQUITY TRUST
HONG KONG/CHINA SERIES JAPAN SERIES
Year Ended Dec. 31 Year Ended Dec. 31
------------------ ------------------
1998 1997 1998 1997
- ------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From operations --
Net investment income (loss).................. $ 145,167 $ 85,602 $ (70,425) $ (131,348)
Net realized gain (loss)...................... (2,557,232) 4,142,003 (758,543) (1,503,496)
Change in unrealized appreciation
(depreciation).............................. 2,157,556 (7,192,367) 879,651 1,219,790
----------- ----------- ----------- -----------
Increase (decrease) in net assets
from operations........................... $ (254,509) $ (2,964,762) $ 50,683 $ (415,054)
Distributions to shareholders from
net investment income......................... (299,066) - - -
Distributions to shareholders from
paid-in capital............................... (175,733) - - -
Undistributed net investment
income included in price of shares
sold and redeemed (Note 1D)................... 333,820 (559,687) - (17,450)
Net increase (decrease) from Fund share
transactions (exclusive of amounts
allocated to net investment income)
(Note 4)...................................... 1,320,868 (23,884,246) 506,977 (12,801,277)
----------- ----------- ----------- -----------
Net increase (decrease) in net assets......... $ 925,380 $(27,408,695) $ 557,660 $(13,233,781)
NET ASSETS:
At beginning of year............................ 6,957,553 34,366,248 3,807,158 17,040,939
----------- ----------- ----------- -----------
At end of year.................................. $ 7,882,933 $ 6,957,553 $ 4,364,818 $ 3,807,158
=========== =========== =========== ===========
UNDISTRIBUTED (DISTRIBUTIONS
IN EXCESS OF) NET INVESTMENT
INCOME INCLUDED IN NET ASSETS
AT END OF YEAR.................................. $ 324,025 $ 151,199 $ (18,122) $ (30,081)
=========== =========== =========== ===========
See notes to financial statements
</TABLE>
<PAGE>
Statements of Changes in Net Assets
================================================================================
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
THE WRIGHT EQUIFUND EQUITY TRUST
MEXICO SERIES NETHERLANDS SERIES
Year Ended Dec. 31 Year Ended Dec. 31
------------------ ------------------
1998 1997 1998 1997
- -----------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From operations -
Net investment income (loss).................. $ 6,456 $ (19,266) $ (4,047) $ (6,673)
Net realized gain............................. 714,163 2,649,772 894,501 789,108
Change in unrealized appreciation
(depreciation).............................. (8,039,713) 5,057,394 3,668,743 1,018,221
----------- ----------- ----------- -----------
Increase (decrease) in net assets
from operations........................... $ (7,319,094) $ 7,687,900 $ 4,559,197 $ 1,800,656
Distributions to shareholders
from net realized gains...................... - - (676,040) (698,428)
Undistributed net investment income
included in price of shares
sold and redeemed (Note 1D)................... - 18,637 (724) 3,359
Net increase (decrease) from Fund
share transactions (exclusive of
amounts allocated to net investment
income) (Note 4)............................. (12,412,429) (1,266,076) 2,692,615 4,303,237
----------- ----------- ----------- -----------
Net increase (decrease)
in net assets............................. $ (19,731,523) $ 6,440,461 $ 6,575,048 $ 5,408,824
NET ASSETS:
At beginning of year............................ 28,468,125 22,027,664 12,974,852 7,566,028
----------- ----------- ----------- -----------
At end of year.................................. $ 8,736,602 $ 28,468,125 $ 19,549,900 $ 12,974,852
============ ============ ============ ============
DISTRIBUTIONS IN EXCESS OF NET INVESTMENT
INCOME INCLUDED IN NET ASSETS AT END OF YEAR.... $ (18,637) $ (66,226) $ (67,128) $ (24,032)
============ ============ ============ ============
See notes to financial statements
</TABLE>
<PAGE>
Financial Highlights
================================================================================
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
THE WRIGHT EQUIFUND EQUITY TRUST
HONG KONG/CHINA SERIES
Year Ended December 31
--------------------------------------------------------------------
1998 1997(5) 1996 1995 1994
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value - beginning of year..... $ 11.980 $ 16.470 $ 13.030 $ 13.020 $ 20.990
-------- -------- -------- -------- --------
Income (loss) from Investment Operations:
Net investment income(1).............. $ 0.473 $ 0.110 $ 0.182 $ 0.368 $ 0.678
Net realized and unrealized gain (loss)(3) (2.693) (4.600) 3.458 (0.158) (8.448)
-------- -------- -------- -------- --------
Total income (loss)
from investment operations........ $ (2.220) $ (4.490) $ 3.640 $ 0.210 $ (7.770)
-------- -------- -------- -------- --------
Less Distributions:
From net investment income............ $ (0.346) $ - $ (0.200) $ (0.200) $ (0.200)
From paid-in capital.................. (0.204) - - - -
---------- -------- --------- -------- ---------
Total distributions................. $ (0.550) $ - $ (0.200) $ (0.200) $ (0.200)
-------- -------- -------- -------- --------
Net asset value - end of year........... $ 9.210 $ 11.980 $ 16.470 $ 13.030 $ 13.020
========= ========= ========= ========= =========
Total Return(2) ........................ (18.65%) (27.20%) 27.96% 1.63% (37.03%)
Annualized Ratios/Supplemental Data:
Net assets, end of year (000 omitted). $ 7,883 $ 6,958 $ 34,366 $ 25,399 $ 19,679
Ratio of net expenses to average net assets 2.38%(4) 1.96%(4) 1.62%(4) 1.59%(4) 1.41%
Ratio of net investment income to
average net assets.................. 2.32% 0.66% 1.81% 3.26% 3.93%
Portfolio Turnover Rate............... 254% 56% 65% 100% 131%
<FN>
(1) During the year ended December 31, 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 income per share and the ratios would have been
as follows:
1998
Net investment income per share......... $ 0.332
=========
Annualized Ratios (As a percentage of average net assets):
Expenses.............................. 3.07%
=========
Net investment income................. 1.63%
=========
(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 year ended December 31, 1995, 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 1.99%,
1.72%, 1.43% and 1.34% for the years ended December 31, 1998, 1997, 1996
and 1995, respectively.
(5) Certain per share amounts are based on average shares outstanding.
</FN>
See notes to financial statements
</TABLE>
<PAGE>
Financial Highlights
================================================================================
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
THE WRIGHT EQUIFUND EQUITY TRUST
JAPAN SERIES
Year Ended December 31
----------------------------------------------------------------
1998 1997(6) 1996 1995 1994(2)
- --------------------------------------------------------------------------------------------------------------------------
Net asset value - beginning of year................. $ 6.840 $ 7.980 $ 8.780 $ 9.660 $ 10.000
-------- -------- -------- -------- --------
Income from Investment Operations:
Net investment loss(1) ........................... $ (0.112) $ (0.100) $ (0.095) $ (0.045) $ (0.050)
Net realized and unrealized gain (loss)........... 0.482 (1.040) (0.705) (0.835) (0.170)
-------- -------- -------- -------- --------
Total gain (loss) from investment operations.... $ 0.370 $ (1.140) $ (0.800) $ (0.880) $ (0.220)
-------- -------- -------- -------- --------
Less Distributions:
From net realized gains on investments............ $ - $ - $ - $ - $ (0.120)
-------- -------- -------- -------- --------
Net asset value - end of year....................... $ 7.210 $ 6.840 $ 7.980 $ 8.780 $ 9.660
========= ========= ========= ========= =========
Total Return(4)..................................... 5.41% (14.16%) (9.11%) (9.11%) (2.17%)
Annualized Ratios/Supplemental Data:
Net assets, end of year (000 omitted)............. $ 4,365 $ 3,807 $ 17,041 $ 21,631 $ 8,653
Ratio of net expenses to average net assets....... 2.24% (5) 2.15% (5) 1.75% (5) 1.81% (5) 1.83% (3)
Ratio of net investment loss to average net assets (1.46%) (1.24%) (1.05%) (0.67%) (0.66%)(3)
Portfolio Turnover Rate........................... 205% 112% 56% 112% 48%
<FN>
(1) During the year ended December 31, 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
Net investment loss per share....................... $ (0.164)
=========
Annualized Ratios (As a percentage of average net assets):
Expenses.......................................... 2.92%
=========
Net investment loss............................... (2.14%)
=========
(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 years ended December 31, 1998, 1997, 1996
and 1995, respectively.
(6) Certain per share amounts are based on average shares outstanding.
</FN>
See notes to financial statements
</TABLE>
<PAGE>
Financial Highlights
================================================================================
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
THE WRIGHT EQUIFUND EQUITY TRUST
MEXICO SERIES
Year Ended December 31
----------------------------------------------------------------
1998(5) 1997(5) 1996 1995 1994(1)
- -------------------------------------------------------------------------------------------------------------------------
Net asset value - beginning of year................. $ 7.660 $ 5.380 $ 4.220 $ 6.480 $ 10.000
-------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income (loss)...................... $ 0.003 $ (0.000)+ $ (0.012) $ (0.012) $ (0.040)
Net realized and unrealized gain (loss)........... (2.853) 2.280 1.172 (2.175) (2.970)
-------- -------- -------- -------- --------
Total income (loss) from investment operations.. $ (2.850) $ 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 year....................... $ 4.810 $ 7.660 $ 5.380 $ 4.220 $ 6.480
========= ========= ========= ========= =========
Total Return(3)..................................... (37.21%) 42.38% 27.49% (33.37%) (30.91%)
Annualized Ratios/Supplemental Data:
Net assets, end of year (000 omitted)............. $ 8,737 $ 28,468 $ 22,028 $ 32,493 $ 13,422
Ratio of net expenses to average net assets....... 1.90%(4) 1.61%(4) 1.59%(4) 1.72%(4) 1.38% (2)
Ratio of net investment income (loss) to average net
assets.......................................... 0.05% (0.06%) (0.14%) (0.41%) (0.98%)(2)
Portfolio Turnover Rate........................... 24% 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 1.80%,
1.45%, 1.41% and 1.39% for the years ended December 31, 1998, 1997, 1996
and 1995, respectively.
(5) Certain per share amounts are based on average shares outstanding.
(+) Amount represents less than $0.001 per share.
</FN>
See notes to financial statements
</TABLE>
<PAGE>
Financial Highlights
================================================================================
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
THE WRIGHT EQUIFUND EQUITY TRUST
NETHERLANDS SERIES
Year Ended December 31
----------------------------------------------------------------
1998(2) 1997(2) 1996 1995 1994
- -------------------------------------------------------------------------------------------------------------------------
Net asset value - beginning of year..... $ 9.810 $ 8.970 $ 8.590 $ 8.100 $ 10.020
-------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income (loss)(1)....... $ (0.003) $ (0.006) $ 0.047 $ (0.004) $ (0.060)
Net realized and unrealized gain...... 2.370 1.396 2.943 1.490 1.150
-------- -------- -------- -------- --------
Total income
from investment operations........ $ 2.367 $ 1.390 $ 2.990 $ 1.486 $ 1.090
-------- -------- -------- -------- --------
Less Distributions:
From net investment income............ $ - $ - $ - $ - $ (0.020)
From net realized gains on investments (0.477) (0.550) (2.610) (0.996) (2.990)
-------- -------- -------- -------- --------
Total distributions................... $ (0.477) $ (0.550) $ (2.610) $ (0.996) $ (3.010)
-------- -------- -------- -------- --------
Net asset value - end of year........... $ 11.700 $ 9.810 $ 8.970 $ 8.590 $ 8.100
========= ========= ========= ========= =========
Total Return(3) ........................ 24.46% 15.44% 36.56% 18.84% 11.68%
Annualized Ratios/Supplemental Data:
Net assets, end of year (000 omitted). $ 19,550 $ 12,975 $ 7,566 $ 7,218 $ 3,951
Ratio of net expenses to average net assets(1) 1.88%(4) 1.86%(4) 2.22%(4) 2.26%(4) 1.93%
Ratio of net investment income (loss) to
average net assets(1)............... (0.02%) (0.05%) 0.83% (0.13%) 0.13%
Portfolio Turnover Rate............... 88% 29% 124% 87% 101%
<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
Net investment income (loss) per share.. $ 0.038 $ (0.018)
========= =========
Annualized Ratios (As a percentage of average net assets):
Expenses.............................. 2.38% 2.45%
========= =========
Net investment income (loss).......... 0.67% (0.58%)
========= =========
(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 1.72%,
1.72%, 1.99% and 2.00% for the years ended December 31, 1998, 1997, 1996
and 1995, respectively.
</FN>
See notes to financial statements
</TABLE>
<PAGE>
Notes to Financial Statements
================================================================================
(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 four active diversified
series (Funds), Wright EquiFund-Hong Kong/China (Hong Kong/China series); Wright
EquiFund - Japan (Japan series); Wright EquiFund - Mexico (Mexico series); and
Wright EquiFund - Netherlands (Netherlands 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 business day as of which such
value is being determined at the close of 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, 1998, the Trust, for federal income tax
purposes, had a capital loss carryover of $2,620,342 for the Hong Kong/China
series, $3,760,236 for the Japan series, $1,419,070 for the Mexico series, and
$156,279 for the Netherlands 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>
Hong Kong/ Nether-
Dec. China Japan Mexico lands
- -------------------------------------------------------------------------------
2003 $165,578 $1,460,778 $1,419,070 -
2005 - 1,302,416 - -
2006 2,454,764 997,042 - 156,279
- -------------------------------------------------------------------------------
At December 31, 1998, net capital losses of $74,042 for the Hong Kong/China
series and $886 for the Japan series attributable to security transactions
incurred after October 31, 1998 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.
During the year ended December 31,1998, the following amounts were
reclassified due to differences between book and tax accounting created
primarily by equalization accounting, the unavailability of a tax benefit for
operating losses and character reclassifications between net investment income
and net realized capital gains.
Accumulated Undistrib-
uted Net Realized Gain
(Loss) on Investment Undistributed
Paid-In and Foreign Currency Net Investment
Capital Transactions Income (Loss)
- -------------------------------------------------------------------------------
Hong Kong/China - 7,095 (7,095)
Japan (72,843) (9,541) 82,384
Mexico (143,983) 65,576 78,407
Netherlands 354,751 (316,426) (38,725)
The changes had no effect on the net asset value per share.
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
<PAGE>
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.
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.
(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 year ended December 31, 1998, the effective
annual rate was 0.75% for all series. To enhance the net income of the Hong
Kong/China and Japan series, Wright made a reduction of its management fee by
$27,221 and $22,412, respectively. In addition, $3,200 and $750 of expenses of
the Hong Kong/China and Japan series, respectively, was allocated to the
investment adviser. The Trust also has engaged Eaton Vance Management (Eaton
Vance) to act as administrator of the Trust. Under the Administration Agreement,
Eaton Vance is responsible for managing the business affairs of the Trust and is
compensated based upon a percentage of each series' average daily net assets,
which rate is reduced as average daily net assets exceed certain levels. For the
year ended December 31, 1998, the effective annual rate was 0.10% for the Hong
Kong/China, Japan, Mexico, and Netherlands 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 year ended December 31, 1998,
the Principal Underwriter made a reduction of its fees to the Hong Kong/China,
and Japan series by $12,740 and $9,805, 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>
Year Ended Year Ended
December 31, 1998 December 31, 1997
Shares Amount Shares Amount
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
HONG KONG/CHINA SERIES
Sales 5,168,279 $ 46,435,268 1,590,805 $ 21,714,438
Issued to shareholders in payment
of distributions declared 44,759 439,310 - -
Redemptions (4,938,190) (45,553,710) (3,097,095) (45,598,684)
--------- ------------ --------- ------------
Net Increase (Decrease) 274,848 $ 1,320,868 (1,506,290) $(23,884,246)
========== ============= ========== =============
JAPAN SERIES
Sales 2,508,187 $ 16,839,289 2,111,367 $ 17,100,885
Redemptions (2,459,335) (16,332,312) (3,689,979) (29,902,162)
--------- ------------ --------- ------------
Net Increase (Decrease) 48,852 $ 506,977 (1,578,612) $(12,801,277)
========== ============= ========== =============
MEXICO SERIES
Sales 1,939,804 $ 11,007,676 7,149,107 $ 49,729,759
Redemptions (3,839,379) (23,420,105) (7,528,473) (50,995,835)
--------- ------------ --------- ------------
Net Decrease (1,899,575) $(12,412,429) (379,366) $ (1,266,076)
========== ============= ========== =============
NETHERLANDS SERIES
Sales 1,942,481 $ 21,885,393 1,342,976 $ 12,946,759
Issued to shareholders in payment
of distributions declared 58,757 644,424 68,767 662,588
Issued in exchange for shares
of Belgium/Luxembourg series 234,280 2,581,773 - -
Redemptions (1,887,595) (22,418,975) (933,166) (9,306,110)
--------- ------------ --------- ------------
Net Increase 347,923 $ 2,692,615 478,577 $ 4,303,237
========== ============= ========== =============
</TABLE>
(5) INVESTMENT TRANSACTIONS
Purchases and sales of investments, other than U.S. Government securities
and short-term obligations, for the year ended December 31, 1998, were as
follows:
<TABLE>
<CAPTION>
Purchases Sales Purchases Sales
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Hong Kong/China $16,962,537 $14,621,712 Mexico $3,314,262 $14,719,932
Japan 9,850,897 9,484,321 Netherlands 15,607,206 13,988,595
- ---------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
(6) FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES
The cost and gross and net unrealized appreciation/depreciation of the
investment securities owned at December 31, 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>
Hong Kong/China $ 7,823,830 $ 167,272 - $ 58,141 = $ 109,131
============ ===========
Japan $ 3,881,144 $ 433,243 - $ 58,485 = $ 374,758
============ ===========
Mexico $ 9,521,324 $ 1,075,209 - $ 2,152,557 = $ (1,077,348)
============ ===========
Netherlands $ 13,314,640 $ 6,212,566 - $ 440,729 = $ 5,771,837
============ ===========
</TABLE>
(7) FINANCIAL INSTRUMENTS
The Funds regularly trade financial instruments with off-balance sheet risk
in the normal course of their investing activities in order to manage exposure
to market risks such as interest rates and foreign currency exchange rates.
These financial instruments include forward foreign currency exchange contracts.
The notional or contractual amounts of these instruments represent the
investment the Funds have in particular classes of financial instruments and
does not necessarily represent the amounts potentially subject to risk. The
measurement of the risks associated with these instruments is meaningful only
when all related and offsetting transactions are considered.
As of December 31, 1998, the Japan series had the following forward foreign
currency exchange contracts open:
<TABLE>
<CAPTION>
Net
Settlement Contracts In Exchange For Contracts Unrealized
Date Currency to Deliver (in U. S. Dollars) at Value Appreciation
(Depreciation)
- ----------------------------------------------------------------------------------------------------------------
SALES
<S> <C> <C> <C> <C> <C>
1/6/99 Japanese Yen $47,276,435 $410,350 $416,764 ($6,414)
============ ============ =========== ===========
PURCHASES
1/5/99 Japanese Yen $30,741,950 $267,275 $270,968 $3,693
============ ============ =========== ===========
</TABLE>
At December 31, 1998, the Japan 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
<PAGE>
taxation, limitation on the removal of funds or other assets of the Trust,
political or financial instability or diplomatic and other developments which
could affect such investments. Foreign stock markets, while growing in volume
and sophistication, are generally not as developed as those in the United
States, and securities of some foreign issuers (particularly those located in
developing countries) may be less liquid and more volatile than securities of
comparable U.S. companies. In general, there is less overall governmental
supervision and regulation of foreign securities markets, broker-dealers, and
issuers than in the United States.
Settlement of securities transactions in foreign countries may be delayed
and is generally less frequent than in the United States, which could affect the
liquidity of the Trust's assets. The Trust may be unable to sell securities
where the registration process is incomplete and may experience delays in
receipt of dividends.
(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 Japan series had $34,000 outstanding on the line of
credit as of December 31, 1998. The Funds did not have significant borrowings or
allocated fees during the year ended December 31, 1998.
(10) CONTINGENT DEFERRED SALES
CHARGE (CDSC)
Effective October 12, 1998, shares that are redeemed within six months of
purchase will be subject to a 1% redemption fee. This redemption fee will be
paid by each redeeming shareholder to, and retained by, the respective Fund. No
CDSC is imposed on shares of the Funds purchased by an investor making an
investment through an investment advisor, financial planner, broker, or other
intermediary that charges a fee for its services. For the year ended December
31, 1998, the following amounts of CDSC were paid by shareholders to the Funds:
Fund CDSC Fee
Hong Kong/China $43,258
Japan 15,402
Mexico 4,082
Netherlands 2,056
(11) REORGANIZATION
Pursuant to the Agreement and Plan of Reorganization by and between the
Belgium/Luxembourg Series and the Netherlands Series, as of the close of
business on December 18, 1998, all of the assets and liabilities of the
Belgium/Luxembourg Series were contributed to the Netherlands Series in a
tax-free exchange. The details of this transaction are as follows:
Shares issued by the
Netherlands series 234,280
Value of shares issued by the
Netherlands series $ 2,581,773
Total net assets of the
Belgium/Luxembourg series $ 2,581,773
Total net assets of the
Netherlands series
prior to acquisition $ 16,197,010
Total net assets of the
Netherlands series
after acquisition $ 18,778,783
Belgium/Luxembourg series
unrealized appreciation $ 879,811
(12) Effective January 1,1999, the Netherlands, along with certain other
European countries, have adopted the Euro as its common currency. Existing
national currencies of these countries will be sub-currencies of the Euro until
July 1, 2002, when the old currencies disappear entirely. The conversion to Euro
impacts only the Netherlands series and there is no financial statement
implication as of December 31, 1998.
<PAGE>
Independent Auditors' Report
==============================
To the Trustees and Shareholders of
The Wright EquiFund Equity Trust:
We have audited the accompanying statements of assets and liabilities,
including the portfolios of investments, of The Wright EquiFund Equity Trust
(the Trust) (comprising, respectively, of Hong Kong/China, Japan, Mexico, and
Netherlands Series) as of December 31, 1998 and the related statements of
operations for the year then ended, the statements of changes in net assets for
the years ended December 31, 1998 and 1997 and the financial highlights for each
of the years in the five-year period ended December 31, 1998. These financial
statements and financial highlights are the responsibility of the Trust's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of the securities owned at
December 31, 1998, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, such financial statements and financial highlights
present fairly, in all material respects, the financial position of each of the
respective Series constituting The Wright EquiFund Equity Trust as of December
31, 1998, the results of their operations, the changes in their net assets, and
their financial highlights for the respective stated periods in conformity with
generally accepted accounting principles.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
January 29, 1999
<PAGE>
EquiFund
THE WRIGHT EQUIFUND
EQUITY TRUST
Annual Report
Officers and Trustees of the Funds
Peter M. Donovan, President and Trustee
H. Day Brigham, Jr., Vice President , Secretary and Trustee
A. M. Moody III, Vice President and Trustee
Judith R. Corchard, Vice President and Trustee
Dorcas R. Hardy, Trustee
Leland Miles, Trustee
Lloyd F. Pierce, Trustee
Richard E. Taber, Trustee
Raymond Van Houtte, Trustee
James L. O'Connor, Treasurer
William J. Austin, Jr., Assistant Treasurer
Administrator
Eaton Vance Management
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
Independent Auditors
Deloitte & Touche LLP
125 Summer Street
Boston, Massachusetts 02110
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.
