THE WRIGHT EQUIFUND EQUITY TRUST
ANNUAL REPORT
DECEMBER 31, 1999
WRIGHT EQUIFUND -- HONG KONG/CHINA
WRIGHT EQUIFUND -- JAPAN
WRIGHT EQUIFUND -- MEXICO
WRIGHT EQUIFUND -- NETHERLANDS
<PAGE>
THE WRIGHT EQUIFUND EQUITY TRUST
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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 -- Mexico
Wright EquiFund -- Japan 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
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Investment Objective ......................................Inside Front Cover
Letter To Shareholders .................................................... 1
Management Discussion ......................................................2
Dividend Distributions and Investment Return ...............................6
PORTFOLIOS
Wright EquiFund -- Hong Kong/China..........................................8
Wright EquiFund -- Japan....................................................9
Wright EquiFund -- Mexico..................................................10
Wright EquiFund -- Netherlands.............................................11
FINANCIAL STATEMENTS
Wright EquiFund -- Hong Kong/China.........................................12
Wright EquiFund -- Japan...................................................14
Wright EquiFund -- Mexico..................................................16
Wright EquiFund -- Netherlands.............................................18
Financial Highlights.......................................................20
Notes to Financial Statements .............................................24
<PAGE>
LETTER TO SHAREHOLDERS
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February 2000
Dear Shareholders:
Following last summer's correction, global stock prices rebounded strongly
in the fourth quarter, making 1999 the best year for stocks since 1993. Global
economic conditions firmed over the course of 1999, led by the U.S. economy.
Corporate profit reports generally made for good reading, and inflation remained
subdued. The Federal Reserve increased interest rates three times in 1999, and
higher rates were also seen in Europe and elsewhere. Despite higher interest
rates, global stock markets took on an increasingly confident tone as Y2K
neared, with every one of the 29 national markets in the FTSE Actuaries universe
advancing in the fourth quarter.
The new millennium is starting with most of the fundamentals looking good
for financial assets. The global economy has come a long way from the crisis of
confidence of 18 months ago. The IMF is forecasting that the world economy will
grow 3.5% in 2000, while inflation is projected to stay below 2%. On balance,
economies around the world are moving toward the model of good growth and low
inflation that the U.S. has enjoyed for some time. The spread of capitalism and
free markets has helped turn the focus of most countries to building productive
enterprise rather than military might. International flows of capital, healthy
competition and technical innovation all support a forecast of increasing global
prosperity and investment growth.
This is not to say that there are no uncertainties on the horizon. Real
interest rates have already risen over a percentage point in the major markets
of the world from their late 1998 lows. Higher rates could begin to have a
restraining effect on economic activity. In the U.S., the Fed seems to be aiming
for another soft landing but one that leaves the economy on a higher plateau
than the former 2.5% target. The European Central Bank, by contrast, has begun
tightening with euro-11 GDP growth at 2% in 1999 and projected for 3% in 2000.
At the other end of the spectrum, the Bank of Japan voted in early January to
maintain a status-quo monetary policy, with interest rates near zero. While the
global interest rate outlook is problematic, we look forward to the
opportunities and challenges that lie ahead in 2000.
In every region of the world, technology stocks led the global markets
higher in 1999. Perhaps this surge of technology stocks during 1999 was the
result of everyone's focus on Y2K; to some extent, it was because of the
exponential growth being achieved in Internet businesses. But there may also be
an element of speculation in investor interest in tech shares: it may be a case
of momentum investing to the nth degree: buying the stocks that have been going
up the most (all roads lead to technology). In any case, despite the general
improvement in world investment fundamentals, a continuation of the hyper
returns in tech stocks - and the 20%-plus annual returns from equities generally
- - is unlikely going forward.
The paragraphs on the following pages discuss the economic, political and
market factors affecting the investment performance of the Wright EquiFund
Equity Trust during 1999 and prospects for the period ahead.
Sincerely,
/s/ Peter M. Donovan
Peter M. Donovan
President
<PAGE>
MANAGEMENT DISCUSSION
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HONG KONG/CHINA
Hong Kong's stock market ended 1999 with a strong showing in December during
which the FTSE Actuaries total return index for Hong Kong rose almost 10%. For
all of 1999, Hong Kong stocks returned 57%, compared with 40% for the entire
Pacific ex Japan region.
In our last Management Discussion in July 1999, we stated that the fund was
adversely affected by market timing activities. Despite that, Wright
EquiFund-Hong Kong/China experienced a strong fourth quarter of 1999 in which it
outperformed the FTSE Hong Kong Index by 2.2% and closed the 1999 year 6.3%
behind the benchmark.
Hong Kong is the world's number one economy in terms of economic freedom, even
after its return to China. This is according to the Cato Institute, a
free-market think tank (which ranked the U.S. #4 after Singapore and New
Zealand). Hong Kong's government is considering proposing a sales tax when it
discloses its 2000-2001 budget in March. The government is facing its third
budget deficit in a row. Many legislators say they will oppose such a tax
because it would damage the city's appeal as a shopping destination; the fact
that this is an election year may also play a role in the opposition. Hong Kong
is showing little sign of getting out of its deflationary spiral, with consumer
prices declining 4% in 1999. Although deflation generally reduces demand for
loans, the Hong Kong Association of Banks forecasts that bank loans will rise
more than 10% this year as economic activity is expected to pick up; bank loans
declined 7% in the first ten months of 1999.
JAPAN
Three out of four Japanese questioned in a January survey are dissatisfied with
the current political establishment. These results were among the most negative
since this annual newspaper survey began in 1978 and cannot be very reassuring
to Prime Minister Keizo Obuchi, who must call a general election by October. The
loss of job security as a result of efforts to revive the economy is cited as a
key reason for the discontent. The government recently seemed to take a step
backward from reform. It has delayed, at least until 2002, a proposed change in
the corporate tax system that would have encouraged corporate restructuring.
Also, earlier proposals to reform the pension system have been watered down.
If investors are becoming discouraged over this waffling on reform, they haven't
shown much sign of it yet. The Nikkei 225 rose to 20,000 in early February, its
first close above that level in two and a half years. In December, the FTSE
total return index for Japan rose 5.7%. For all of 1999, Japan turned in the
best stock market returns of the G-7 markets, rising 56% in yen and 72% in U.S.
dollars. The Wright EquiFund-Japan had even a better return during 1999. During
the fourth quarter, the fund was 19.7% ahead of the benchmark and ended 1999 up
102.9%, a return which was 30.7% ahead of the FTSE Japan index. Since the
beginning of the year, the yen has slipped about 5% against the dollar. This
decline after the yen's 11% rise last year is welcomed by the government, whose
efforts to hold down the value of the yen to encourage exports have had limited
success. Japanese officials reportedly would like to have their G-7 partners
agree to help keep a lid on the yen, but sources say such joint action is
unlikely.
Japan's economic recovery seems to be continuing at a snail's pace. After
declining for two months, Japan's industrial production increased 3.8% in
November from October, bringing the year-over-year gain for the latest three
months to 3.4%; six months earlier, production was declining. The jobless rate
fell to a ten-month low of 4.5% in November, although many of the new jobs being
created are relatively low paying. Consumers are still cautious; sales at
Japan's large retailers fell 2.8% in November from a year earlier. GDP may have
declined in the December quarter, and GDP growth of only about 1% is expected
over the next year. At its rate-setting meeting on January 17, the Bank of Japan
is reported to have voted to keep interest rates near zero.
<PAGE>
MEXICO
Mexican stocks proved very rewarding for investors last year. For the fourth
quarter of 1999, the FTSE Actuaries total return index for Mexico increased 39%
in U.S. dollars, bringing the return for the year to 92%. The Wright
EquiFund-Mexico was hampered by its underweighting in Telefonos de Mexico, which
at over 33% of the index is the single largest holding in the Mexican benchmark.
The SEC diversification rules for open-ended mutual funds sets limitations on
maximum exposure per security. Hence, significant outperformance by Telemex can
create disparities in performance. Nevertheless, in absolute terms, the Wright
EquiFund-Mexico provided investors with a 60.9% dollar return in 1999.
In the early weeks of 2000, Mexican stocks continued to rise. The peso
appreciated 4.6% compared to the U.S. dollar last year, helped by and
contributing to a good performance on the inflation front. For all of 1999,
consumer prices rose 12.3%, which may seem high by U.S. standards; still, it was
a big improvement on 1998's 18.6%. For 2000, the government's goal is 10%
inflation (although the "whisper number" is in single digits), along with GDP
growth of 4.5%. The government has adopted a 10% increase in the minimum wage
for 2000 and is also sticking to a tight budget that calls for a deficit of just
1% of GDP this year. The central bank is expected to continue its restrictive
policy this year; despite this bias, 28-day interest rates in Mexico declined to
16% from 34% over the course of 1999. In raising its outlook on Mexico's peso
debt to "improving" from "stable" recently, Moody's cited the government's
conservative fiscal stance.
NETHERLANDS
Dutch stocks slipped back about 1% in the first five weeks of 2000. This comes
after the FTSE total return index for the Netherlands increased just about 10%
in December, in line with the average for all of Europe. For all of last year,
Dutch stocks returned 27% in euros and 8.7% in dollars. The Wright
EquiFund-Netherlands ended 1999 with a loss of 4.4%. The majority of the return
differential occurred in the fourth quarter when the fund underperformed the
benchmark by 8%. This was due to Royal Dutch Shell (RDS), which experienced a
big rally due to oil price increases in the fourth quarter. The fund's holding
in RDS was significantly below the benchmark due to diversification rule
constraints specified by the SEC.
The Dutch government unexpectedly ended the year with a budget surplus of just
about one billion euros, the result of higher-than-expected tax revenues. The
government plans to use the money to reduce debt and to increase spending on
health care, education and police security. In contrast to the situation for
several of its euro partners, low unemployment is a problem for the Netherlands.
The jobless rate was at a record low 2.7% for the three months through November.
The prime minister has gone so far as to suggest that older workers postpone
retirement in order to ease the worker shortage. According to the consensus
forecast, Dutch GDP growth will hold this year at the 3.4% expected to be
reported for 1999.
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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>
THE WRIGHT EQUIFUND EQUITY TRUST
WRIGHT EQUIFUND - HONG KONG/CHINA
Growth of $10,000 invested 7/1/90* through 12/31/99
Annual Total Return
Lst 1 Yr Lst 5 yr Since Inception*
EquiFund - Hong Kong/China 51.0% 3.1% 6.0%
Hang Seng Index 74.3% 20.7% 23.8%
FT-World ex US Index 31.8% 12.7% 9.0%
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 $17,440 by December 31,
1999.
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
12/31/99 $17,440 $76,219 $22,594
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THE WRIGHT EQUIFUND EQUITY TRUST
WRIGHT EQUIFUND - JAPAN
Growth of $10,000 invested 2/1/94* through 12/31/99
Annual Total Return
Lst 1 Yr Lst 5 Yr Since Inception*
EquiFund - Japan 102.9% 8.7% 6.9%
Tokyo SE Index 78.0% 2.7% 2.9%
FT-World ex US Index 31.8% 12.7% 10.6%
The cumulative total return of a U.S.$10,000 investment in the EQUIFUND - JAPAN
at inception on 2/1/94 would have grown to $14,817 by December 31, 1999.
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
12/31/99 $14,817 $11,873 $18,145
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THE WRIGHT EQUIFUND EQUITY TRUST
WRIGHT EQUIFUND - MEXICO
Growth of $10,000 invested 8/1/94* through 12/31/99
Annual Total Return
Lst 1 Yr Lst 5 Yr Since Inception*
EquiFund - Mexico 60.9% 4.1% -3.1%
Mexican Bolsa IPC Index 88.6% 9.4% 0.6%
FT-World ex US Index 31.8% 12.7% 11.3%
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 $8,444 by December 31, 1999.
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
12/31/99 $8,444 $10,349 $17,816
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THE WRIGHT EQUIFUND EQUITY TRUST
WRIGHT EQUIFUND - NETHERLANDS
Growth of $10,000 invested 7/1/90* through 12/31/99
Annual Total Return
Lst 1 Yr Lst 5 yr Since Inception*
EquiFund - Netherlands -4.4% 17.4% 10.5%
CBS Total Return General Index 12.0% 25.2% 19.7%
FT-World ex US Index 31.8% 12.7% 9.0%
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 $25,719 by December 31,
1999.
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
12/31/99 $25,719 $55,146 $22,594
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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 edeemable value assuming all dividends and distributions are
reinvested. Past performance is not predictive of future performance.
<PAGE>
DIVIDEND DISTRIBUTIONS AND INVESTMENT RETURN
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<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)
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
WRIGHT EQUIFUND - HONG KONG/CHINA
6/28/90 $10.00 100.00 $1,000.00
Dec. 98 9.21 0.55 0.05814 125.38 1,154.73 -18.65% -13.49% 1.71%
Jan 99 8.40 125.38 1,053.17 -12.60% -14.10% 0.61%
Feb 99 8.53 125.38 1,069.47 -21.92% -12.26% 0.79%
Mar 99 9.36 125.38 1,173.54 -13.73% -9.27% 1.86%
Apr 99 10.90 125.38 1,366.62 11.01% -6.27% 3.64%
May 99 10.10 125.38 1,266.32 18.48% -8.39% 2.71%
Jun 99 11.14 125.38 1,396.71 42.02% -5.38% 3.82%
Jul 99 11.04 125.38 1,384.17 51.12% -6.40% 3.65%
Aug 99 11.22 125.38 1,406.74 74.08% -6.51% 3.79%
Sep 99 10.65 125.38 1,335.27 50.06% -7.00% 3.18%
Oct. 99 11.14 125.38 1,396.71 22.03% -5.44% 3.65%
Nov. 99 12.94 125.38 1,622.39 35.97% 1.11% 5.28%
Dec. 99 13.91 125.38 1,744.01 51.03% 3.05% 6.03%
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WRIGHT EQUIFUND - JAPAN
2/14/94 $10.00 100.00 $1,000.00
Dec. 98 7.21 101.28 730.19 5.41% - -6.25%
Jan 99 7.18 101.28 727.16 0.28% - -6.32%
Feb 99 6.93 101.28 701.84 0.43% -7.24% -6.88%
Mar 99 7.86 101.28 796.02 17.31% -4.54% -4.43%
Apr 99 8.14 101.28 824.38 21.49% -4.34% -3.70%
May 99 7.81 101.28 790.96 21.46% -4.94% -4.40%
Jun 99 8.65 101.28 876.03 33.08% -4.26% -2.47%
Jul 99 9.38 101.28 949.96 43.87% -2.15% -0.94%
Aug 99 9.68 101.28 980.34 60.53% -1.55% -0.36%
Sep 99 10.61 101.28 1,074.53 76.83% 0.81% 1.29%
Oct 99 11.27 101.28 1,141.37 73.65% 2.05% 2.34%
Nov 99 12.48 101.28 1,263.91 80.61% 5.46% 4.13%
Dec 99 14.63 101.28 1,481.66 102.91% 8.66% 6.92%
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WRIGHT EQUIFUND - MEXICO
8/02/94 $10.00 100.00 $1,000.00
Dec 98 4.81 109.09 524.72 -37.21% - -13.59%
Jan 99 4.62 109.09 503.99 -30.11% - -14.37%
Feb 99 5.17 109.09 563.99 -24.64% - -11.95%
Mar 99 5.98 109.09 652.35 -16.25% - -8.91%
Apr 99 6.82 109.09 743.99 -6.58% - -6.15%
May 99 6.26 109.09 682.90 -1.73% - -7.72%
Jun 99 6.98 109.09 761.44 17.31% - -5.49%
Jul 99 6.38 109.09 695.99 6.16% - -7.00%
Aug 99 6.13 109.09 668.72 59.64% -8.92% -7.62%
Sep 99 6.13 109.09 668.72 41.90% -9.46% -7.50%
Oct 99 6.18 109.09 674.17 27.42% -8.60% -7.24%
Nov 99 7.10 109.09 774.54 50.74% -6.14% -4.68%
Dec 99 7.74 109.09 844.35 60.91% 4.09% -3.08%
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WRIGHT EQUIFUND - NETHERLANDS
6/28/90 $10.00 100.00 $1,000.00
Dec 98 11.70 0.477 0.043562 229.92 2,690.09 24.46% 21.07% 12.35%
Jan 99 10.99 229.92 2,526.84 14.80% 18.15% 11.52%
Feb 99 10.69 229.92 2,457.87 1.23% 17.44% 11.04%
Mar 99 10.44 0.157 0.014632 233.29 2,435.51 -2.69% 17.44% 10.82%
Apr 99 11.03 233.29 2,573.15 1.64% 18.16% 11.41%
May 99 10.54 233.29 2,458.84 -7.84% 17.29% 10.73%
Jun 99 10.59 233.29 2,470.50 -6.79% 17.62% 10.68%
Jul 99 10.71 233.29 2,498.50 -7.95% 17.32% 10.61%
Aug 99 10.84 233.29 2,528.82 2.94% 17.35% 10.65%
Sep 99 10.45 233.29 2,437.84 6.49% 16.68% 10.12%
Oct 99 10.40 233.29 2,426.18 1.59% 15.71% 9.96%
Nov 99 10.15 233.29 2,367.86 -5.89% 16.13% 9.59%
Dec 99 9.82 1.13 0.122693 261.91 2,571.95 -4.39% 17.36% 10.46%
</TABLE>
<PAGE>
WRIGHT EQUIFUND - HONG KONG/CHINA
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Portfolio of Investments as of December 31, 1999
Shares Description Value
- -------------------------------------------------------------------------------
DIVERSIFIED - 9.9%
38,000 Hutchison Whampoa Ltd. $ 552,354
-----------
ELECTRICAL - 4.5%
38,800 Johnson Electric Holdings-500 $ 249,051
-----------
ELECTRONICS - 4.2%
93,000 Legend Holdings Ltd $ 230,885
-----------
FINANCIAL - 14.9%
48,000 Guoco Group Ltd. $ 146,334
22,900 Hang Seng Bank 261,432
18,980 HSBC Holdings 266,120
38,640 Wing Lung Bank 156,568
-----------
$ 830,454
-----------
PRINTING & PUBLISHING - 2.4%
152,000 South China Morning Post(Hold.) Ltd. $ 131,001
-----------
REAL ESTATE & OTHER FINANCIALS - 13.6%
21,000 Cheung Kong (Holdings) Ltd. $ 266,755
34,000 Henderson Land Devel. Co. Ltd. 218,240
26,193 Sun Hung Kai Properties Ltd. 272,914
-----------
$ 757,909
-----------
RECREATION - 3.7%
30,000 Television Broadcasts Ltd. $ 204,528
-----------
RETAILERS - 5.9%
127,000 Esprit Holdings Ltd. $ 137,227
185,000 Giordano Int'l. Ltd. 190,378
-----------
$ 327,605
-----------
TRANSPORTATION - 3.9%
122,000 Cathay Pacific Airways Ltd. $ 217,353
-----------
UTILITIES - 23.0%
147,797 Cable and Wireless HKT Ltd. $ 426,813
60,000 China Telecom (Hong Kong) Ltd. 375,096
48,000 CLP Holdings Ltd. 221,045
105,088 Hong Kong & China Gas Co. 143,965
36,321 Hong Kong Electric Holdings Ltd. 113,532
-----------
$ 1,280,451
-----------
MISCELLANEOUS - 9.8%
76,000 Citic Pacific Ltd. $ 285,953
102,000 Li & Fung Ltd. 255,853
-----------
$ 541,806
-----------
WARRANTS - 0.0%
9,078 Hong Kong & China Gas* $ 0
-----------
Total Investments
(identified cost, $3,142,935) - 95.8% $ 5,323,397
Other Assets, Less Liabilities - 4.2% 235,094
-----------
Net Assets - 100.0% $ 5,558,491
============
* Non-income producing security.
See notes to financial statements
<PAGE>
WRIGHT EQUIFUND - JAPAN
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Portfolio of Investments as of December 31, 1999
Shares Description Value
- -------------------------------------------------------------------------------
AUTOMOTIVE - 5.7%
3,000 Honda Motor Co. Ltd. $ 111,459
5,000 Toyota Motor Corp. 241,983
-----------
$ 353,442
-----------
CHEMICALS - 3.5%
5,000 Shin-Etsu Chemical Co., Ltd. $ 215,096
-----------
DRUGS, COSMETICS & HEALTHCARE - 3.8%
3,000 Taisho Pharmaceutical Co. Ltd. $ 87,994
3,000 Takeda Chemical Industries Ltd. 148,123
-----------
$ 236,117
-----------
ELECTRONICS - 36.9%
1,000 Hirose Electronics Co., Ltd. $ 223,993
350 Keyence Corp. 142,012
1,400 Kyocera Corp. 362,730
1,000 Matsushita Communications Inds. 263,981
2,000 Murata Mfg. Co. Ltd. 469,300
1,000 Rohm Company Ltd. 410,637
1,000 Sony Corporation 296,246
2,000 Taiyo Yuden Co., Ltd. 118,498
-----------
$ 2,287,397
-----------
FINANCIAL - 3.6%
16,000 Bank of Tokyo-Mitsubishi, Ltd. $ 222,761
-----------
MACHINERY & EQUIPMENT - 7.1%
6,000 Canon Inc. $ 238,170
1,000 Fanuc Ltd. 127,200
4,000 Ricoh Company, Ltd. 75,322
-----------
$ 440,692
-----------
PRINTING & PUBLISHING - 2.6%
10,000 Dai Nippon Printing Co. Ltd. $ 159,366
-----------
REAL ESTATE & OTHER FINANCIALS - 4.4%
1,000 Acom Co., Ltd. $ 97,868
1,000 Promise Co., Ltd. 50,841
1,000 Takefuji Corporation 125,049
-----------
$ 273,758
-----------
RETAILERS - 11.6%
2,460 FamilyMart Co., Ltd. $ 163,551
3,000 Seven-Eleven Japan Co., Ltd. 475,166
500 Shimamura Co., Ltd. 79,194
-----------
$ 717,911
-----------
UTILITIES - 11.1%
50 Japan Telecom Co., Ltd. $ 200,430
60 NTT Japan Corporation 137,857
90 NTT Mobile Communications 345,815
-----------
$ 684,102
-----------
MISCELLANEOUS - 4.6%
200 Bellsystem24 Inc. $ 219,007
2,000 Meitec Corporation 63,551
-----------
$ 282,558
-----------
Total Investments
(identified cost, $3,012,825) - 94.9% $ 5,873,200
Other Assets, Less Liabilities - 5.1% 316,806
-----------
Net Assets - 100.0% $ 6,190,006
=============
See notes to financial statements
<PAGE>
Wright EquiFund - Mexico
- -------------------------------------------------------------------------------
Portfolio of Investments as of December 31, 1999
Shares Description Value
- -------------------------------------------------------------------------------
BEVERAGES - 17.0%
88,000 Fomento Economico Mexicano $ 392,038
198,000 Grupo Continental SA - Ser CP 287,773
220,000 Grupo Modelo SA de Mxp Ser C 602,422
136,000 Pepsi-Gemex SA de CV 140,082
-----------
$ 1,422,315
-----------
CONSTRUCTION - 9.8%
52,700 Apasco SA $ 327,467
66,490 Cemex SA - CPO 371,140
171,000 Grupo Cementos Chihuahua-B 126,066
-----------
$ 824,673
-----------
DIVERSIFIED - 14.2%
76,213 Alfa SA-A $ 357,186
290,000 Desc Sociedad de Fomento Indl.* 238,231
75,100 Grupo Carso SA 373,325
70,000 Grupo Industrial Saltillo SA 223,381
-----------
$ 1,192,123
-----------
FINANCIAL - 7.7%
162,000 Grupo Financie. Banamex Accival SA $ 648,341
-----------
FOOD - 5.8%
157,092 Grupo Industrial Bimbo-Ser A $ 349,921
284,000 Grupo Industrial Maseca SA de CV 139,981
-----------
$ 489,902
-----------
METAL PRODUCERS - 3.0%
87,000 Industrias Penoles SA de CV $ 250,142
-----------
METAL PRODUCTS MFRS. - 2.5%
16,000 Tubos de Acero de Mexico SA $ 210,469
-----------
PAPER - 4.4%
95,000 Kimberly Clark de Mexico SA de CV $ 370,195
-----------
RECREATION - 4.8%
12,000 Grupo Televisa SA-Ser CPO $ 404,423
-----------
RETAILERS - 12.8%
194,920 Cifra SA de CV B $ 390,045
233,000 Controladora Coml Mexicana SA 311,648
80,000 Organizacion Soriana SA de CV 366,509
-----------
$ 1,068,202
-----------
UTILITIES - 17.1%
21,000 Carso Global Telecom-A-1 $ 196,840
221,500 Telefonos de Mexico SA de CV 1,236,388
-----------
$ 1,433,228
-----------
MISCELLANEOUS - 3.9%
56,000 Savia SA de CV $ 323,791
-----------
Total Investments
(identified cost, $5,504,406) - 103.0% $ 8,637,804
Other Assets, Less Liabilities - (3.0%) (250,876)
-----------
Net Assets - 100.0% $ 8,386,928
============
* Non-income producing security.
See notes to financial statements
<PAGE>
WRIGHT EQUIFUND - NETHERLANDS
- -------------------------------------------------------------------------------
Portfolio of Investments as of December 31, 1999
Shares Description Value
- -------------------------------------------------------------------------------
BEVERAGES - 4.6%
8,245 Heineken NV $ 402,257
-----------
CHEMICALS - 4.4%
7,560 Akzo Nobel N.V $ 379,349
-----------
CONSTRUCTION - 3.3%
13,542 Hollandsche Beton Groep NV $ 129,627
9,666 Volker Wessels Stevin 158,266
-----------
$ 287,893
-----------
ELECTRONICS - 8.9%
3,300 Equant NV* $ 374,737
2,912 Koninklijke Philips Electronics NV 396,108
-----------
$ 770,845
-----------
FINANCIAL - 4.5%
15,793 ABN Amro Holdings NV $ 394,643
-----------
FOOD - 14.1%
14,620 CSM N.V. Cert. $ 312,300
16,522 Unilever N.V. 912,953
-----------
$ 1,225,253
-----------
MACHINERY & EQUIPMENT - 2.4%
12,621 Oce-Van Der Grinten $ 213,390
-----------
METAL PRODUCTS MANUFACTURERS - 2.6%
8,297 Hunter Douglas NV $ 225,721
-----------
OIL, GAS & COAL - 14.9%
21,100 Royal Dutch Petroleum Co. $ 1,293,693
-----------
PRINTING & PUBLISHING - 10.5%
12,190 Telegraaf (Holdingsmij) - CVA $ 270,218
8,810 VNU NV 463,200
5,280 Wolters Kluwer NV 178,756
-----------
$ 912,174
-----------
REAL ESTATE & OTHER FINANCIALS - 14.1%
4,154 Aegon NV $ 401,396
11,018 Fortis (NL) NV 396,887
7,097 ING Groep NV. 428,627
-----------
$ 1,226,910
-----------
RETAILERS - 6.8%
6,800 Koninklijke Ahold NV $ 201,371
14,658 Vendex International 389,912
-----------
$ 591,283
-----------
UTILITES - 5.6%
4,970 Koninklijke NV $ 485,253
-----------
MISCELLANEOUS - 5.6%
6,583 Ahrend NV $ 92,531
5,761 Fugro NV 214,196
5,000 IHC Caland NV 182,627
-----------
$ 489,354
-----------
Total Investments
(identified cost, $6,536,668) - 102.3% $ 8,898,018
Other Assets, Less Liabilities - (2.3%) (201,817)
-----------
Net Assets - 100.0% $ 8,696,201
============
* Non-income producing security.
See notes to financial statements
<PAGE>
WRIGHT EQUIFUND - HONG KONG/CHINA
- -------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1999
- -------------------------------------------------------------------------------
ASSETS:
Investments--
Identified cost...................... $ 3,142,935
Unrealized appreciation.............. 2,180,462
------------
Total value (Note 1A).............. $ 5,323,397
Cash................................... 322,564
Receivable for fund shares sold........ 50,000
Receivable from Investment Adviser..... 4,530
Dividends receivable................... 499
------------
Total Assets......................... $ 5,700,990
------------
LIABILITIES:
Payable for investments purchased...... $ 120,836
Payable for fund shares reacquired..... 14,979
Payable for open forward foreign currency
exchange contracts (Notes 1I & 7).... 64
Accrued expenses....................... 6,620
------------
Total Liabilities.................... $ 142,499
------------
NET ASSETS................................ $ 5,558,491
=============
NET ASSETS CONSIST OF:
Paid-in capital........................... $ 5,210,719
Accumulated net realized loss on investment
and foreign currency transactions
(computed on the basis of identified cost) (2,347,984)
Unrealized appreciation of investments and
translation of assets and liabilities in foreign
currencies (computed on the basis of
identified cost)....................... 2,180,430
Undistributed net investment income....... 515,326
------------
Net assets applicable to
outstanding shares................... $ 5,558,491
=============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING............................ 399,584
=============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST (NOTE 10)....... $13.91
=============
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1999
- -------------------------------------------------------------------------------
INVESTMENT INCOME:
Income--
Dividends.............................. $ 167,252
Less foreign taxes..................... (650)
------------
Total investment income............ $ 166,602
------------
Expenses--
Investment Adviser fee (Note 2)........ $ 37,774
Administrator fee (Note 2)............. 5,063
Compensation of Trustees not employed by
the Investment Adviser or Administrator
(Note 2)............................. 3,424
Custodian fee (Note 1E)................ 39,327
Transfer & dividend disbursing agent fees 9,634
Distribution expenses (Note 3)......... 12,591
Audit fees............................. 18,073
Legal services......................... 5,553
Registration costs..................... 16,917
Interest expense....................... 4,766
Printing............................... 1,814
Miscellaneous.......................... 2,066
------------
Total expenses..................... $ 157,002
------------
Deduct--
Reduction of Investment Adviser
fee (Note 2)......................... $ 22,774
Allocation of expenses to the
Investment Adviser (Note 2).......... 4,530
Reduction of distribution expense
by Principal Underwriter (Note 3).... 12,591
Reduction of Custodian fee (Note 1E)... 16,842
------------
Total deducted..................... $ 56,737
------------
Net expenses....................... $ 100,265
------------
Net investment income........... $ 66,337
------------
REALIZED AND UNREALIZED GAIN:
Net realized gain on investment and foreign
currency transactions
(identified cost basis)................. $ 1,483,804
Change in unrealized appreciation of investments
and translation of assets and liabilities in
foreign currencies..................... 888,627
------------
Net realized and unrealized gain....... $ 2,372,431
------------
Net increase in net assets from
operations ........................... $ 2,438,768
=============
See notes to financial statements
<PAGE>
Wright EquiFund - Hong Kong/China
- -----------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------
Year Ended December 31
------------------------
1999 1998
- -------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From operations --
Net investment income ................. $ 66,337 $ 145,167
Net realized gain (loss)............... 1,483,804 (2,557,232)
Change in unrealized appreciation...... 888,627 2,157,556
----------- -----------
Increase (decrease) in net assets
from operations................... $ 2,438,768 $ (254,509)
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
Net increase (decrease) from fund share
transactions (exclusive of amounts
allocated to net investment
income) (Note 4)................. (4,763,210) 1,320,868
------------ -----------
Net increase (decrease) in net assets.. $ (2,324,442) $ 925,380
NET ASSETS:
At beginning of year..................... 7,882,933 6,957,553
----------- -----------
At end of year.......................... $ 5,558,491 $ 7,882,933
=========== ===========
UNDISTRIBUTED NET INVESTMENT
INCOME INCLUDED IN NET ASSETS AT
END OF YEAR.............................. $ 515,326 $ 324,025
=========== ===========
See notes to financial statements
WRIGHT EQUIFUND - JAPAN
- -------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1999
- -------------------------------------------------------------------------------
ASSETS:
Investments--
Identified cost...................... $ 3,012,825
Unrealized appreciation.............. 2,860,375
------------
Total value (Note 1A).............. $ 5,873,200
Cash................................... 278,039
Receivable for fund shares sold........ 50,991
Receivable from Investment Adviser..... 5,665
Dividends receivable................... 465
Tax reclaim receivable................. 29
------------
Total Assets......................... $ 6,208,389
------------
LIABILITIES:
Payable for fund shares reacquired..... $ 12,819
Accrued expenses....................... 5,564
------------
Total Liabilities.................... $ 18,383
------------
NET ASSETS................................ $ 6,190,006
=============
NET ASSETS CONSIST OF:
Paid-in capital........................... $ 6,421,278
Accumulated net realized loss on investment
and foreign currency transactions
(computed on the basis of identified cost) (3,030,844)
Unrealized appreciation of investments and
translation of assets and liabilities in foreign
currencies (computed on the basis of
identified cost)....................... 2,860,314
Distributions in excess of net investment
income................................. (60,742)
------------
Net assets applicable to outstanding
shares................................ $ 6,190,006
=============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING............................ 423,194
=============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST (NOTE 10)....... $14.63
=============
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1999
- -------------------------------------------------------------------------------
INVESTMENT INCOME:
Income--
Dividends.............................. $ 18,234
Less foreign taxes..................... (2,532)
------------
Total investment income............ $ 15,702
------------
Expenses--
Investment Adviser fee (Note 2)........ $ 31,243
Administrator fee (Note 2)............. 4,194
Compensation of Trustees not employed by
the Investment Adviser or Administrator
(Note 2)............................. 4,230
Custodian fee (Note 1E)................ 34,201
Transfer & dividend disbursing agent fees 5,829
Distribution expenses (Note 3)......... 10,414
Audit fees............................. 14,873
Legal services ........................ 11,619
Registration costs..................... 14,111
Amortization of organization expenses
(Note 1F)............................ 240
Interest expense....................... 792
Printing............................... 2,040
Miscellaneous.......................... 3,842
------------
Total expenses..................... $ 137,628
------------
Deduct--
Reduction of Investment Adviser
fee (Note 2)......................... $ 31,243
Allocation of expenses to the
Investment Adviser (Note 2).......... 5,665
Reduction of distribution expense by
Principal Underwriter (Note 3)....... 10,414
Reduction of Custodian fee (Note 1E)... 5,998
------------
Total deducted..................... $ 53,320
------------
Net expenses....................... $ 84,308
------------
Net investment loss............. $ (68,606)
------------
REALIZED AND UNREALIZED GAIN:
Net realized gain on investment and foreign
currency transactions
(identified cost basis)................ $ 910,973
Change in unrealized appreciation of investments
and translation of assets and liabilities in
foreign currencies..................... 2,297,298
------------
Net realized and unrealized gain....... $ 3,208,271
------------
Net increase in net assets from operations $ 3,139,665
=============
See notes to financial statements
<PAGE>
Wright EquiFund - Japan
- -------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
----------------------------------------------
Year Ended December 31
--------------------------
1999 1998
- -------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From operations --
Net investment loss.............. $ (68,606) $ (70,425)
Net realized gain (loss)......... 910,973 (758,543)
Change in unrealized appreciation 2,297,298 879,651
----------- -----------
Increase in net assets from
operations................... $ 3,139,665 $ 50,683
Net increase (decrease) from fund
share transactions............... (1,314,477) 506,977
------------- -----------
Net increase in net assets....... $ 1,825,188 $ 557,660
NET ASSETS:
At beginning of year............... 4,364,818 3,807,158
----------- -----------
At end of year..................... $ 6,190,006 $ 4,364,818
============ ===========
DISTRIBUTIONS IN EXCESS OF
NET INVESTMENT INCOME INCLUDED IN NET
ASSETS AT END OF YEAR................ $ (60,742) $ (18,122)
============= ============
See notes to financial statements
<PAGE>
WRIGHT EQUIFUND - MEXICO
- -------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1999
- -------------------------------------------------------------------------------
ASSETS:
Investments--
Identified cost...................... $ 5,504,406
Unrealized appreciation.............. 3,133,398
------------
Total value (Note 1A).............. $ 8,637,804
Cash................................... 55
Receivable for fund shares sold........ 30,973
Receivable from Investment Adviser..... 700
------------
Total Assets......................... $ 8,669,532
------------
LIABILITIES:
Line of credit (Note 9)................ $ 247,000
Payable for fund shares reacquired..... 29,391
Accrued expenses....................... 6,213
------------
Total Liabilities.................... $ 282,604
------------
NET ASSETS................................ $ 8,386,928
=============
NET ASSETS CONSIST OF:
Paid-in capital........................... $ 6,904,276
Accumulated undistributed net realized loss on
investment and foreign currency transactions
(computed on the basis of identified cost) (1,667,178)
Unrealized appreciation of investments and
translation of assets and liabilities in foreign
currencies (computed on the basis of
identified cost)....................... 3,133,398
Undistributed net investment income ...... 16,432
------------
Net assets applicable to outstanding
shares.............................. $ 8,386,928
=============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING............................ 1,084,112
=============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST (NOTE 10)....... $7.74
=============
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1999
- -------------------------------------------------------------------------------
INVESTMENT INCOME:
Income--
Dividends.............................. $ 126,609
Less foreign taxes..................... (7,296)
------------
Total investment income............ $ 119,313
------------
Expenses--
Investment Adviser fee (Note 2)........ $ 72,227
Administrator fee (Note 2)............. 9,643
Compensation of Trustees not employed by
the Investment Adviser or Administrator
(Note 2)............................. 3,643
Custodian fee (Note 1E)................ 38,915
Transfer & dividend disbursing agent fees 10,964
Distribution expenses (Note 3)......... 23,934
Audit fees............................. 14,873
Legal services......................... 8,419
Amortization of organization expenses
(Note 1F)............................ 2,152
Registration costs..................... 15,951
Interest expense....................... 2,410
Printing............................... 3,540
Miscellaneous.......................... 4,741
------------
Total expenses..................... $ 211,412
------------
Deduct--
Reduction of Investment Adviser
fee (Note 2)......................... $ 950
Reduction of distribution expense
by Principal Underwriter (Note 3).... 4,855
Allocation of expenses to the
Investment Adviser (Note 2).......... 700
Reduction of Custodian fee (Note 1E)... 12,997
------------
Total deducted..................... $ 19,502
------------
Net expenses....................... $ 191,910
------------
Net investment loss............. $ (72,597)
------------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain on investment and foreign
currency transactions
(identified cost basis)................. $ 460,502
Change in unrealized appreciation of investments
and translation of assets and liabilities in
foreign currencies..................... 3,699,602
------------
Net realized and unrealized gain....... $ 4,160,104
------------
Net increase in net assets from operations $ 4,087,507
=============
See notes to financial statements
<PAGE>
Wright EquiFund - Mexico
- -------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
---------------------------------------
Year Ended December 31
-------------------------
1999 1998
- -------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From operations -
Net investment income (loss)...... $ (72,597) $ 6,456
Net realized gain................. 460,502 714,163
Change in unrealized appreciation
(depreciation)................... 3,699,602 (8,039,713)
----------- -----------
Increase (decrease) in net
assets from operations.......... $4,087,507 $ (7,319,094)
Net decrease from fund share
transactions (Note 4)........... (4,437,181) (12,412,429)
----------- -----------
Net decrease in net assets....... $ (349,674) $(19,731,523)
NET ASSETS:
At beginning of year................. $ 8,736,602 $28,468,125
----------- -----------
At end of year...................... $ 8,386,928 $ 8,736,602
=========== ===========
UNDISTRIBUTED NET INVESTMENT INCOME
INCLUDED IN NET ASSETS AT END OF YEAR $ 16,432 $ 18,637
=========== ===========
See notes to financial statements
<PAGE>
WRIGHT EQUIFUND - NETHERLANDS
- -------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1999
- -------------------------------------------------------------------------------
ASSETS:
Investments--
Identified cost...................... $ 6,536,668
Unrealized appreciation.............. 2,361,350
------------
Total value (Note 1A).............. $ 8,898,018
Cash................................... 16,423
Receivable for fund shares sold........ 5,121
Tax reclaim receivable................. 4,216
------------
Total Assets......................... $ 8,923,778
------------
LIABILITIES:
Payable for fund shares reacquired..... $ 86,029
Line of credit (Note 9)................ 132,000
Accrued expenses....................... 9,548
------------
Total Liabilities.................... $ 227,577
------------
NET ASSETS................................ $ 8,696,201
=============
NET ASSETS CONSIST OF:
Paid-in capital........................... $ 6,202,741
Accumulated undistributed net realized gain on
investment and foreign currency transactions
(computed on the basis of identified cost) 158,557
Unrealized appreciation of investments and
translation of assets and liabilities in foreign
currencies (computed on the basis of
identified cost)....................... 2,361,289
Undistributed net investment loss......... (26,386)
------------
Net assets applicable to outstanding shares $ 8,696,201
=============
SHARES OF BENEFICIAL INTEREST
OUTSTANDING............................ 885,590
=============
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST (NOTE 10)....... $9.82
=============
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1999
- -------------------------------------------------------------------------------
INVESTMENT INCOME:
Income--
Dividends.............................. $ 526,016
Less foreign taxes..................... (47,314)
------------
Total investment income............ $ 478,702
------------
Expenses--
Investment Adviser fee (Note 2)........ $ 106,449
Administrator fee (Note 2)............. 14,193
Compensation of Trustees not employed by
the Investment Adviser or Administrator
(Note 2)............................. 3,424
Custodian fee (Note 1E)................ 39,491
Transfer & dividend disbursing agent fees 5,601
Distribution expenses (Note 3)......... 35,483
Audit fees............................. 20,473
Registration costs..................... 15,797
Interest expense....................... 1,816
Printing............................... 5,416
Legal fees............................. 172
Miscellaneous.......................... 1,914
------------
Total expenses..................... $ 250,229
------------
Deduct--
Reduction of Custodian fee (Note 1E)... $ 9,471
------------
Net expenses....................... $ 240,758
------------
Net investment income........... $ 237,944
------------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain on investment and foreign
currency transactions
(identified cost basis)................. $ 1,762,560
Change in unrealized appreciation of investments
and translation of assets and liabilities in
foreign currencies..................... (3,449,938)
------------
Net realized and unrealized loss....... $(1,687,378)
------------
Net decrease in net assets from operations $(1,449,434)
=============
See notes to financial statements
<PAGE>
Wright EquiFund - Netherlands
- -------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
-----------------------------------------------
Year Ended December 31
-------------------------
1999 1998
- -------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From operations -
Net investment income (loss)........$ 237,944 $ (4,047)
Net realized gain................... 1,762,560 894,501
Change in unrealized appreciation
(depreciation)..................... (3,449,938) 3,668,743
----------- -----------
Increase (decrease) in net assets
from operations...................$(1,449,434) $ 4,559,197
Distributions to shareholders from
net realized gains................ (1,259,821) (676,040)
Undistributed net investment income
included in price of shares
sold and redeemed (Note 1D)....... - (724)
Net increase (decrease) from fund
share transactions (exclusive of
amounts allocated to net
investment income) (Note 4)...... (8,144,444) 2,692,615
----------- -----------
Net increase (decrease)
in net assets...................$(10,853,699) $ 6,575,048
NET ASSETS:
At beginning of year................ $ 19,549,900 $ 12,974,852
----------- -----------
At end of year..................... $ 8,696,201 $ 19,549,900
=========== ============
UNDISTRIBUTED NET INVESTMENT LOSS AND
DISTRIBUTIONS IN EXCESS OF NET INVESTMENT
INCOME INCLUDED IN NET ASSETS AT END
OF YEAR.............................. $ (26,386) $ (67,128)
=========== ===========
See notes to financial statements
<PAGE>
FINANCIAL HIGHLIGHTS
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
HONG KONG/CHINA SERIES Year Ended December 31
- ---------------------------------------------------------------------------------------------------------------------------------
1999 1998 1997(5) 1996 1995
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value - beginning of year $ 9.210 $ 11.980 $ 16.470 $ 13.030 $ 13.020
-------- -------- -------- -------- --------
Income (loss) from investment operations:
Net investment income(1) $ 0.598 $ 0.473 $ 0.110 $ 0.182 $ 0.368
Net realized and unrealized gain (loss)(3) 4.102 (2.693) (4.600) 3.458 (0.158)
-------- -------- -------- -------- --------
Total income (loss)
from investment operations $ 4.700 $ (2.220) $ (4.490) $ 3.640 $ 0.210
-------- -------- -------- -------- --------
Less distributions:
Dividends from investment income $ - $ (0.346) $ - $ (0.200) $ (0.200)
Distributions from capital gains - - - - -
Return of capital - (0.204) - - -
-------- -------- -------- -------- --------
Total distributions $ - $ (0.550) $ - $ (0.200) $ (0.200)
-------- -------- -------- -------- --------
Net asset value - end of year $ 13.910 $ 9.210 $ 11.980 $ 16.470 $ 13.030
========= ========= ========= ========= =========
Total return(2) 51.03% (18.65%) (27.20%) 27.96% 1.63%
Ratios/Supplemental Data(1):
Net assets, end of year (000 omitted) $ 5,558 $ 7,883 $ 6,958 $ 34,366 $ 25,399
Ratio of expenses to average net assets 2.33% 2.38% 1.96% 1.62% 1.59%
Ratio of expenses after custodian
fee reduction to average net assets(4) 1.99% 1.99% 1.72% 1.43% 1.34%
Ratio of net investment income to average
net assets 1.32% 2.32% 0.66% 1.81% 3.26%
Portfolio turnover rate 125% 254% 56% 65% 100%
- --------------------------------------------------------------------------------------------------------------------------------
<FN>
(1)During the years ended December 31, 1999 and 1998, the investment adviser
and the distributor voluntarily 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:
1999 1998
Net investment income per share $ 0.240 $ 0.332
========= =========
Ratios (as a percentage of average net assets):
Expenses 3.12% 3.07%
========= =========
Expenses after custodian fee reduction(4) 2.78% 2.68%
========= =========
Net investment income 0.53% 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.
(5)Certain per share amounts are based on average shares outstanding.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
FINANCIAL HIGHLIGHTS
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
JAPAN SERIES Year Ended December 31
- ----------------------------------------------------------------------------------------------------------------------------------
1999 1998 1997(4) 1996 1995
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value - beginning of year $ 7.210 $ 6.840 $ 7.980 $ 8.780 $ 9.660
-------- -------- -------- -------- --------
Income from investment operations:
Net investment loss(1) $ (0.175) $ (0.112) $ (0.100) $ (0.095) $ (0.045)
Net realized and unrealized gain (loss) 7.595 0.482 (1.040) (0.705) (0.835)
-------- -------- -------- -------- --------
Total income (loss)
from investment operations $ 7.420 $ 0.370 $ (1.140) $ (0.800) $ (0.880)
-------- -------- -------- -------- --------
Less distributions:
Distributions from investment income $ - $ - $ - $ - $ -
Distributions from capital gains - - - - -
Return of capital - - - - -
-------- -------- -------- -------- --------
Net asset value - end of year $ 14.630 $ 7.210 $ 6.840 $ 7.980 $ 8.780
========= ========= ========= ========= =========
Total return(2) 102.91% 5.41% (14.16%) (9.11%) (9.11%)
Ratios/Supplemental Data(1)
Net assets, end of year (000 omitted) $ 6,190 $ 4,365 $ 3,807 $ 17,041 $ 21,631
Ratio of expenses to average net assets 2.16% 2.24% 2.15% 1.75% 1.81%
Ratio of expenses after custodian
fee reduction to average net assets(3) 2.02% 2.00% 1.84% 1.65% 1.49%
Ratio of net investment loss to average net assets (1.64%) (1.46%) (1.24%) (1.05%) (0.67%)
Portfolio turnover rate 78% 205% 112% 56% 112%
- -------------------------------------------------------------------------------------------------------------------------------
<FN>
(1)During the years ended December 31, 1999 and 1998, the investment adviser
and the distributor voluntarily 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:
1999 1998
Net investment loss per share $ (0.297) $ (0.164)
========= =========
Ratios (as a percentage of average net assets):
Expenses 3.30% 2.92%
========= =========
Expenses after custodian fee reduction(3) 3.16% 2.68%
========= =========
Net investment loss (2.78%) (2.14%)
========= =========
- -------------------------------------------------------------------------------
(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)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.
(4) Certain per share amounts are based on average shares outstanding.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
FINANCIAL HIGHLIGHTS
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MEXICO SERIES Year Ended December 31
- -----------------------------------------------------------------------------------------------------------------------------------
1999 1998(4) 1997(4) 1996 1995
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value - beginning of year $ 4.810 $ 7.660 $ 5.380 $ 4.220 $ 6.480
-------- -------- -------- -------- --------
Income from investment operations:
Net investment income (loss)(1) $ (0.060) $ 0.003 $ (0.000)(+) $ (0.012) $ (0.012)
Net realized and unrealized gain (loss) 2.990 (2.853) 2.280 1.172 (2.175)
-------- -------- -------- -------- --------
Total income (loss)
from investment operations $ 2.930 $ (2.850) $ 2.280 $ 1.160 $ (2.187)
-------- -------- -------- -------- --------
Less distributions:
Distributions from investment income $ - $ - $ - $ - $ -
Distributions from capital gains - - - - (0.030)
Return of capital - - - - (0.043)(++)
-------- -------- -------- -------- --------
Total distributions $ - $ - $ - $ - $ (0.073)
-------- -------- -------- -------- --------
Net asset value - end of year $ 7.740 $ 4.810 $ 7.660 $ 5.380 $ 4.220
========= ========= ========= ========= =========
Total return(2) 60.91% (37.21%) 42.38% 27.49% (33.37%)
Ratios/Supplemental Data(1)
Net assets, end of year (000 omitted) $ 8,387 $ 8,737 $ 28,468 $ 22,028 $ 32,493
Ratio of expenses to average net assets 2.14% 1.90% 1.61% 1.59% 1.72%
Ratio of expenses after custodian
fee reduction to average net assets(3) 2.00% 1.80% 1.45% 1.41% 1.39%
Ratio of netinvestment income (loss) to
average net assets (0.76%) 0.05% (0.06%) (0.14%) (0.41%)
Portfolio turnover rate 56% 24% 113% 63% 110%
- ----------------------------------------------------------------------------------------------------------------------------------
<FN>
(1)During certain periods presented, the investment adviser and the
distributor voluntarily 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:
1999
Net investment loss per share........... $ (0.065)
=========
Ratios (as a percentage of average net assets):
Expenses.............................. 2.20%
=========
Expenses after custodian fee reduction(3) 2.06%
=========
Net investment loss................... (0.82%)
=========
- -------------------------------------------------------------------------------
(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)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.
(4)Certain per share amounts are based on average shares outstanding.
(+) Amount represents less than $0.001 per share.
(++) Amount represents distribution in excess of capital gains.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
FINANCIAL HIGHLIGHTS
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NETHERLANDS SERIES Year Ended December 31
- ---------------------------------------------------------------------------------------------------------------------------------
1999 1998(2) 1997(2) 1996 1995
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value - beginning of period $ 11.700 $ 9.810 $ 8.970 $ 8.590 $ 8.100
-------- -------- -------- -------- --------
Income from investment operations:
Net investment income (loss)(1) $ 0.233 $ (0.003) $ (0.006) $ 0.047 $ (0.004)
Net realized and unrealized gain (loss) (0.826) 2.370 1.396 2.943 1.490
-------- -------- -------- -------- --------
Total income (loss)
from investment operations $ (0.593) $ 2.367 $ 1.390 $ 2.990 $ 1.486
-------- -------- -------- -------- --------
Less distributions:
Dividends from investment income $ - $ - $ - $ - $ -
Distributions from capital gains (1.287) (0.477) (0.550) (2.610) (0.996)
Return of capital - - - - -
-------- -------- -------- -------- --------
Total distributions $ (1.287) $ (0.477) $ (0.550) $ (2.610) $ (0.996)
-------- -------- -------- -------- --------
Net asset value - end of period $ 9.820 $ 11.700 $ 9.810 $ 8.970 $ 8.590
========= ========= ========= ========= =========
Total return(3) (4.39%) 24.46% 15.44% 36.56% 18.84%
Ratios/Supplemental Data(1):
Net assets, end of period (000 omitted) $ 8,696 $ 19,550 $ 12,975 $ 7,566 $ 7,218
Ratio of expenses to average net assets 1.77% 1.88% 1.86% 2.22% 2.26%
Ratio of expenses after custodian
fee reduction to average net assets(4) 1.71% 1.72% 1.72% 1.99% 2.00%
Ratio of net investment income (loss) to
average net assets 1.69% (0.02%) (0.05%) 0.83% (0.13%)
Portfolio turnover rate 48% 88% 29% 124% 87%
- --------------------------------------------------------------------------------------------------------------------------------
<FN>
(1)During certain periods presented, either the investment adviser, the
administrator and/or the distributor voluntarily 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)
========= =========
Ratios (as a percentage of average net assets):
Expenses 2.38% 2.45%
========= =========
Expenses after custodian fee reduction(4) 2.15% 2.19%
========= =========
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.
</FN>
</TABLE>
See notes to financial statements
<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, 1999, the Trust, for federal income tax
purposes, had a capital loss carryover of $1,982,849 for the Hong Kong/China
series, $2,993,286 for the Japan series, $1,285,657 for the Mexico series, and
$20,220 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:
Dec. Hong Kong/China Japan Mexico Netherlands
- -------------------------------------------------------------------------------
2003 $ - $ 693,828 $1,285,657 $ -
2005 - 1,302,416 - -
2006 1,982,849 997,042 - 20,220
- -------------------------------------------------------------------------------
At December 31, 1999, net capital losses of $17,869 for the Hong Kong/China
series attributable to security transactions incurred after October 31, 1999 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.
<PAGE>
D. Equalization - The Trust followed 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 was credited
or charged to undistributed net investment income. As a result, undistributed
net investment income per share was unaffected by sales or redemptions of fund
shares. As of January 1, 1999, the Trust ceased recording equalization.
E. Expense Reduction - The funds have 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, 1999, the following amounts were
reclassified due to differences between book and tax accounting created
primarily by equalization accounting.
<TABLE>
<CAPTION>
Accumulated Undistributed Net Undistributed
Realized Gain (Loss) on Investment Net Investment
Paid-In Capital and Foreign Currency Transactions Income (Loss)
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Hong Kong/China $ (9,658) $ (115,306) $ 124,964
Japan (35,888) 9,902 25,986
Mexico (103,964) 33,572 70,392
Netherlands 523,952 (326,750) (197,202)
</TABLE>
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
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.
<PAGE>
(2) INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The Trust has engaged Wright Investors' Service, Inc. (Wright) to act as
investment adviser to the funds pursuant to the respective Investment Advisory
contracts. Wright furnishes each fund with investment management, investment
advisory, and other services. For its services, Wright is compensated based upon
a percentage of each series' average daily net assets which rate is adjusted as
average daily net assets exceed certain levels. For the year ended December 31,
1999, the effective annual rate was 0.75% for all series. To enhance the net
income of the Hong Kong/China, Japan and Mexico series, Wright made a reduction
of its management fee by $22,774, $31,243, and $950, respectively. In addition,
$4,530, $5,665, and $700 of expenses of the Hong Kong/China, Japan and Mexico
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,
1999, 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 employees of Eaton Vance or Wright, Trustees and officers receive
remuneration for their services to the Trust out of the fees paid to Eaton Vance
and Wright.
(3) DISTRIBUTION EXPENSES
The Trustees have adopted a Distribution Plan (the Plan) pursuant to Rule
12b-1 of the Investment Company Act of 1940. The Plan provides that each of the
funds will pay Wright Investors' Service Distributors, Inc. (Principal
Underwriter), a wholly-owned subsidiary of Winthrop, an annual rate of 0.25% of
each series' average daily net assets for activities primarily intended to
result in the sale of each series' shares. For the year ended December 31, 1999,
the Principal Underwriter made a reduction of its fees to the Hong Kong/China,
Japan and Mexico series by $12,591, $10,414 and $4,855, respectively.
(4) SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number
of full and fractional shares of beneficial interest (without par value).
Transactions in Trust shares for the periods ended were as follows:
<TABLE>
<CAPTION>
Year Ended December 31, 1999 Year Ended December 31, 1998
-------------------------------------------------------------------
Shares Amount Shares Amount
- ----------------------------------------------------------------------------------------------------
HONG KONG/CHINA SERIES
<S> <C> <C> <C> <C>
Sales 3,586,975 $ 34,295,296 5,168,279 $ 46,435,268
Issued to shareholders in payment
of distributions declared - - 44,759 439,310
Redemptions (4,042,866) (39,058,506) (4,938,190) (45,553,710)
--------- ------------ --------- ------------
Net Increase (Decrease) (455,891) $ (4,763,210) 274,848 $ 1,320,868
=========== ============== =========== ==============
JAPAN SERIES
Sales 544,316 $ 4,816,150 2,508,187 $ 16,839,289
Redemptions (726,381) (6,130,627) (2,459,335) (16,332,312)
--------- ------------ --------- ------------
Net Increase (Decrease) (182,065) $ (1,314,477) 48,852 $ 506,977
=========== ============== =========== ==============
MEXICO SERIES
Sales 2,281,564 $ 14,121,252 1,939,804 $ 11,007,676
Redemptions (3,012,302) (18,558,433) (3,839,379) (23,420,105)
--------- ------------ --------- ------------
Net Decrease (730,738) $ (4,437,181) (1,899,575) $ (12,412,429)
=========== ============== =========== ==============
NETHERLANDS SERIES
Sales 958,551 $ 10,545,172 1,942,481 $ 21,885,393
Issued to shareholders in payment
of distributions declared 127,924 1,211,833 58,757 644,424
Issued in exchange for shares of
Belgium/Luxembourg series - - 234,280 2,581,773
Redemptions (1,871,162) (19,901,449) (1,887,595) (22,418,975)
--------- ------------ --------- ------------
Net Increase (Decrease) (784,687) $ (8,144,444) 347,923 $ 2,692,615
=========== ============== =========== ==============
</TABLE>
<PAGE>
(5) INVESTMENT TRANSACTIONS
Purchases and sales of investments, other than U.S. Government securities
and short-term obligations, for the year ended December 31, 1999, were as
follows:
<TABLE>
<CAPTION>
Purchases Sales Purchases Sales
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Hong Kong/China $5,794,422 $10,781,159 Mexico $5,145,182 $9,145,027
Japan 3,157,234 4,755,832 Netherlands 6,542,828 15,097,644
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
(6) FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES
The cost and gross and net unrealized appreciation/depreciation of the
investment securities owned at December 31, 1999, as computed on a federal
income tax basis, are as follows:
<TABLE>
<CAPTION>
Gross Gross Net
Aggregate Unrealized Unrealized Unrealized
SERIES Cost Appreciation - Depreciation = Appreciation
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Hong Kong/China $ 3,530,760 $ 1,794,185 - $ 1,548 = $ 1,792,637
============= ============
Japan $ 3,094,064 $ 2,842,789 - $ 63,653 = $ 2,779,136
============= ============
Mexico $ 5,885,926 $ 2,969,272 - $ 217,394 = $ 2,751,878
============= ============
Netherlands $ 6,615,472 $ 2,755,787 - $ 473,241 = $ 2,282,546
============= ============
</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.
<PAGE>
As of December 31, 1999, the Hong Kong/China 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 Depreciation
- -------------------------------------------------------------------------------------------------------------
PURCHASES
<S> <C> <C> <C> <C> <C>
1/03/99 Hong Kong Dollar $939,379 $120,900 $120,836 $64
============ ============ ============ ============
</TABLE>
(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 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 year ended December 31, 1999.
At December 31, 1999, the Mexico and Netherlands series had $247,000 and
$132,000 outstanding on the line of credit.
(10) REDEMPTION FEE
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
fee 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, 1999, the following fee amounts were paid by shareholders to the funds:
Fund Fee Fund Fee
Hong Kong/China $128,492 Mexico $77,869
Japan 14,034 Netherlands 34,801
<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, 1999 and the related statements of
operations for the year then ended, the statements of changes in net assets for
the years ended December 31, 1999 and 1998 and the financial highlights for each
of the years in the five-year period ended December 31, 1999. These financial
statements and financial highlights are the responsibility of the Trust's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of the securities owned at
December 31, 1999, by correspondence with the custodian and brokers. Where
replies were not received from brokers, we performed other auditing procedures.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, such financial statements and financial highlights
present fairly, in all material respects, the financial position of each of the
respective Series constituting The Wright EquiFund Equity Trust as of December
31, 1999, the results of their operations, the changes in their net assets, and
their financial highlights for the respective stated periods in conformity with
generally accepted accounting principles.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
February 4, 2000
<PAGE>
ANNUAL REPORT
OFFICERS AND TRUSTEES OF THE FUNDS
Peter M. Donovan, President and Trustee
H. Day Brigham, Jr., Vice President , Secretary and Trustee
A. M. Moody III, Vice President and Trustee
Judith R. Corchard, Vice President and Trustee
Dorcas R. Hardy, Trustee
Leland Miles, Trustee
Lloyd F. Pierce, Trustee
Richard E. Taber, Trustee
Raymond Van Houtte, Trustee
James L. O'Connor, Treasurer
William J. Austin, Jr., Assistant Treasurer
ADMINISTRATOR
Eaton Vance Management
255 State Street
Boston, Massachusetts 02109
INVESTMENT ADVISER
Wright Investors' Service
1000 Lafayette Boulevard
Bridgeport, Connecticut 06604
PRINCIPAL UNDERWRITER
Wright Investors' Service Distributors, Inc.
1000 Lafayette Boulevard
Bridgeport, Connecticut 06604
(800) 888-9471
e-mail: [email protected]
CUSTODIAN
Investors Bank & Trust Company
200 Clarendon Street
Boston, Massachusetts 02116
TRANSFER AND DIVIDEND DISBURSING AGENT
PFPC Global Fund Services
Wright Managed Investment Funds
P.O. Box 5156
Westborough, Massachusetts 01581-9698
INDEPENDENT AUDITORS
Deloitte & Touche LLP
200 Berkeley Street
Boston, Massachusetts 02116-5022
This report is not authorized for use as an offer of sale or a solicitation of
an offer to buy shares of a mutual fund unless accompanied or preceded by a
Fund's current prospectus.
