-------------------------------------------------------------------------------
Description of art work on front cover of report
Solid blue box with name of Trust in upper left hand corner of page
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SEMI-ANNUAL
REPORT
JUNE 30, 1995
<PAGE>
WRIGHT MANAGED BLUE CHIP SERIES TRUST
===============================================================================
WRIGHT MANAGED BLUE CHIP SERIES TRUST IS A DIVERSIFIED, OPEN-END MANAGEMENT
INVESTMENT COMPANY, THAT IS DESIGNED TO BE THE FUNDING VEHICLE FOR VARIOUS
INSURANCE CONTRACTS TO BE OFFERED BY PFL LIFE INSURANCE COMPANY AND OTHER
PARTICIPATING INSURANCE COMPANIES. SHARES OF THE TRUST WILL BE OFFERED
EXCLUSIVELY TO THE SEPARATE ACCOUNTS OF SUCH INSURANCE COMPANIES. FOUR MANAGED
INVESTMENT PORTFOLIOS OF THE TRUST AND THEIR INVESTMENT OBJECTIVES ARE DESCRIBED
BELOW:
WRIGHT NEAR TERM BOND PORTFOLIO (WNTBP) seeks high total return, to the extent
consistent with reasonable safety, by investing primarily in debt securities
directly issued or guaranteed by the U.S. Government. The Portfolio expects to
maintain an average weighted portfolio maturity of five years or less.
WRIGHT TOTAL RETURN BOND PORTFOLIO (WTRBP) seeks high total return, consisting
of current income and capital appreciation, by investing primarily in
obligations issued, or guaranteed by the U.S. Government and its agencies or
instrumentalities and in high-grade corporate debt securities of any maturity.
WRIGHT SELECTED BLUE CHIP PORTFOLIO (WSBCP) seeks long-term capital appreciation
and, as a secondary objective, reasonable, current income by investing primarily
in equity securities of well-established U.S. companies that meet the investment
adviser's quality standards.
WRIGHT INTERNATIONAL BLUE CHIP PORTFOLIO (WIBCP) seeks long-term capital
appreciation by investing primarily in equity securities of well-established,
non-U.S. companies that meet the investment adviser's quality standards.
TABLE OF CONTENTS
Investment Objectives.....Inside Front Cover
Report to Shareholders.................... 1
Wright Near Term Bond Portfolio
Portfolio of Investments................ 3
Financial Statements.................... 4
Wright Total Return Bond Portfolio
Portfolio of Investments................ 7
Financial Statements.................... 8
Wright Selected Blue Chip Portfolio
Portfolio of Investments............... 11
Financial Statements................... 14
Wright International Blue Chip Portfolio
Portfolio of Investments............... 17
Financial Statements................... 19
Notes to Financial Statements............ 22
<PAGE>
WRIGHT MANAGED BLUE CHIP SERIES TRUST
===============================================================================
July 1995
Dear Shareholders:
Following a difficult year in 1994, the global securities markets generally
enjoyed good growth during the first six months of 1995. The U.S. securities
markets rallied broadly during the first half: stock prices drew strength from
solid gains in corporate profits, while bond market values rose on evidence that
the economy was moderating from the fourth quarter's 5% growth rate and that
inflation pressures would remain low. Most foreign stock and bond markets also
performed well during the first half of 1995, partly on hopes that lower
interest rates from the Federal Reserve would send rates lower around the world.
In fact, on July 6, the Federal Reserve reduced the federal funds rate from 6%
to 5.75%, its first reduction in three years.
In Wright's view, the Federal Reserve's 25 basis-point reduction in the fed
funds rate can be viewed as a signal to the markets that the U.S.'s
four-year-old economic expansion will not be allowed to expire. It is also
confirmation of the markets' perception that inflation pressures are easing.
With interest rates headed lower, the weaker business conditions now rippling
from the U.S. shores into Mexico and Canada and across the oceans to Japan and
Europe will gradually be supplanted by a more vigorous economic pulse. It is
quite likely that central banks around the globe will take their cue from the
Fed and ease credit conditions over the summer months.
Now that the Fed has begun to reduce interest rates, it would not be surprising
for the stock and bond markets to experience some temporary selling pressures on
the news; few things in life are as satisfying in reality as they are in
anticipation. Nonetheless, Wright believes that the economic fundamentals point
to healthy returns for investors with long-term horizons. Allowing for the risk
of some near-term interruption of the current market rallies, the investment
outlook over the rest of the twentieth century can be expected to benefit from:
increasing productivity and business investment in plant and equipment, spawning
<PAGE>
both low inflation and higher growth in corporate profits; the prospect of
genuine reduction in the U.S. budget deficit; demographic changes supporting
savings and investment vis-a-vis consumption; and the likelihood of an extended
period of low interest rates globally.
At the start of 1995, Wright anticipated that a continuing low level of
inflation and a more moderate rate of economic expansion in the U.S. and around
the world would "check the rising trend in short-term interest rates and produce
a reduction in long rates over the course of 1995." I am happy to report that
this process has begun. While Wright looks for a generally positive investment
environment over the coming five years, it should be understood that past
performance is not predictive of future performance.
Sincerely,
Peter M. Donovan, President
<PAGE>
WRIGHT NEAR TERM BOND PORTFOLIO (WNTBP)
PORTFOLIO OF INVESTMENTS
JUNE 30, 1995 (UNAUDITED)
===============================================================================
<TABLE>
<CAPTION>
Face Coupon Maturity Market Current Yield To
Amount Description Rate Date Price Value Yield(1) Maturity(1)
------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C> <C> <C>
$ 65,000 U.S. Treasury Notes 5.625% 8/31/97 $ 99.516 $ 64,685 5.65% 5.86%
40,000 Federal Nat'l. Mortgage Assoc. 7.000% 8/11/99 101.250 40,500 6.91% 6.64%
50,000 Federal Farm Credit Bank 8.650% 10/01/99 108.922 54,461 7.94% 6.23%
50,000 Federal Home Loan Banks 7.780% 2/03/00 106.187 53,094 7.33% 6.26%
40,000 Student Loan Marketing Assoc. 7.500% 3/08/00 105.250 42,100 7.13% 6.25%
----------
Total Investments (identified cost, $247,353) -- 77.7% $254,840 6.93% 6.21%
====== ======
Other Assets, less Liabilities -- 22.3% 73,224
----------
Net Assets -- 100.0% $328,064
==========
Average Maturity -- 3.8 Years(1)
<FN>
(1) Unaudited.
</FN>
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT NEAR TERM BOND PORTFOLIO
===============================================================================
STATEMENT OF ASSETS AND LIABILITIES
June 30,1995 (UNAUDITED)
-------------------------------------------------------------------------------
<TABLE>
ASSETS:
<S> <C>
Investments --
Identified cost.................... $ 247,353
Unrealized appreciation............ 7,487
---------
Total value (Note 1A)............ $ 254,840
Cash................................. 50,304
Interest receivable.................. 5,935
Deferred organizational costs (Note 1D) 6,163
Receivable from investment adviser... 18,140
---------
Total Assets....................... $ 335,382
---------
LIABILITIES:
Income distribution payable.......... $ 1,245
Trustees fee payable................. 625
Custodian fee payable................ 2,810
Accrued expenses..................... 2,638
---------
Total Liabilities.................. $ 7,318
---------
NET ASSETS.............................. $ 328,064
=========
NET ASSETS CONSIST OF:
Paid-in Capital......................... $ 335,612
Accumulated net realized loss on investment
transactions......................... (15,035)
Unrealized appreciation of investments.. 7,487
---------
Net assets applicable to outstanding
shares............................... $ 328,064
=========
SHARES OF BENEFICIAL INTEREST
OUTSTANDING.......................... 33,551
=========
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST............... $9.78
=========
</TABLE>
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1995 (UNAUDITED)
-------------------------------------------------------------------------------
<TABLE>
INVESTMENT INCOME:
<S> <C>
Income --
Interest............................. $ 10,276
---------
Expenses --
Investment adviser fee (Note 3)...... $ 780
Administrator fee (Note 3)........... 87
Compensation of Trustees not affiliated
with the Investment Adviser or
Administrator ....................... 1,614
Custodian fee........................ 8,547
Amortization of organization expense
(Note 1D).......................... 867
Transfer and dividend disbursing
agent fees .......................... 625
Audit................................ 6,502
Legal................................ 710
Registration costs................... 74
Miscellaneous........................ 765
---------
Total expenses................... $ 20,571
---------
Deduct --
Reduction of investment adviser fee.. $ 780
Reduction of administrator fee....... 87
Allocation of expense to the adviser. 18,140
---------
Total deducted................... $ 19,007
---------
Net expenses..................... $ 1,564
---------
Net investment income.......... $ 8,712
---------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized loss on investment
transactions........................... $ (9,163)
Change in unrealized appreciation
of investments.......................... 25,731
---------
Net realized and unrealized gain on
investments........................ $ 16,568
---------
Net increase in net assets from
operations .......................... $ 25,280
=========
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT NEAR TERM BOND PORTFOLIO
===============================================================================
<TABLE>
<CAPTION>
For the Period from
Six Months January 6, 1994
Ended (start of business) to
STATEMENT OF CHANGES IN NET ASSETS June 30, 1995 December 31, 1994
(UNAUDITED)
------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
<S> <C> <C>
From operations --
Net investment income............................................. $ 8,712 $ 14,658
Net realized loss on investment transactions...................... (9,163) (5,872)
Change in unrealized appreciation (depreciation) of investments... 25,731 (18,244)
---------- ----------
Increase (decrease) in net assets from operations............... $ 25,280 $ (9,458)
Distributions to shareholders from net investment income (Note 2)... (8,712) (14,658)
Net increase (decrease) from fund share transactions (Note 4)....... (139,992) 475,604
---------- ----------
Net increase (decrease) in net assets........................... $ (123,424) $ 451,488
NET ASSETS:
At beginning of period.............................................. 451,488 --
---------- ----------
At end of period.................................................... $ 328,064 $ 451,488
=========== ===========
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT NEAR TERM BOND PORTFOLIO
===============================================================================
<TABLE>
<CAPTION>
For the Period from
Six Months January 6, 1994
Ended (start of business) to
FINANCIAL HIGHLIGHTS June 30, 1995 December 31, 1994
(UNAUDITED)
---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value, beginning of period.............................. $ 9.330 $ 10.000
----------- -----------
Income from Investment Operations:
Net investment income(1)....................................... $ 0.238 $ 0.324
Net realized and unrealized gain (loss) on investments......... 0.450 (0.670)
----------- -----------
Total income (loss) from investment operations............... $ 0.688 $ (0.346)
----------- -----------
Less Distributions to Shareholders:
From net investment income..................................... $ (0.238) $ (0.324)
----------- -----------
Net asset value, end of period.................................... $ 9.780 $ 9.330
============ ============
Total Return(3)................................................... 7.4% (3.2%)
Ratios/Supplemental Data:
Net assets, end of year (000 omitted).......................... $328 $451
Ratio of net expenses to average net assets.................... 0.90% (2) 0.90% (2)
Ratio of net investment income to average net assets........... 5.04% (2) 3.43% (2)
Portfolio Turnover Rate........................................ 86% 52%
<FN>
(1) During each of the periods presented, the Investment Adviser and the
Administrator reduced their fees, and the Investment Adviser was allocated a
portion of each Portfolio's operating expenses. Had such actions not been
undertaken, the net investment loss per share and the ratios would have been
as follows:
Net investment loss per share................................. $ (0.281) $ (0.095)
============ ============
Ratios (As a percentage of average net assets):
Expenses..................................................... 11.90% (2) 5.34% (2)
============ ============
Net investment loss.......................................... (5.95%) (2) (1.01%) (2)
============ ============
(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 payable date. The total investment
return does not reflect expenses that apply to the separate account or
related policies. If these charges had been included, the total return would
be reduced.
</FN>
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT TOTAL RETURN BOND PORTFOLIO (WTRBP)
PORTFOLIO OF INVESTMENTS
JUNE 30, 1995 (UNAUDITED)
===============================================================================
<TABLE>
<CAPTION>
Face Coupon Maturity Market Current Yield To
Amount Description Rate Date Price Value Yield(1) Maturity(1)
<C> <S> <C> <C> <C> <C> <C> <C>
$ 50,000 Federal Farm Credit Bank 5.270% 2/01/99 $ 96.937 $ 48,468 5.44% 6.23%
50,000 Federal Home Loan Bank 7.780% 2/03/00 106.187 53,093 7.33% 6.26%
50,000 Tennessee Valley Authority 6.125% 7/15/03 96.719 48,360 6.33% 6.23%
50,000 U.S. Treasury Notes 5.750% 8/15/03 96.953 48,476 5.93% 6.23%
50,000 Federal National Mortgage Assoc. 7.490% 3/02/05 105.803 52,902 7.08% 6.54%
20,000 AT&T Corp 7.750% 3/01/07 106.868 21,374 7.25% 6.90%
50,000 U.S. Treasury Bonds 7.500% 11/15/16 108.875 54,438 6.89% 6.71%
----------
Total Investments (identified cost, $314,246) -- 89.4% $ 327,111 6.58% 6.41%
====== ======
Other Assets, less Liabilities -- 10.6% 38,787
----------
Net Assets -- 100.0% $ 365,898
==========
Average Maturity -- 9.6 Years(1)
<FN>
(1) Unaudited.
</FN>
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT TOTAL RETURN BOND PORTFOLIO
===============================================================================
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
June 30,1995 (UNAUDITED)
-------------------------------------------------------------------------------
ASSETS:
<S> <C>
Investments --
Identified cost.................... $ 314,246
Unrealized appreciation............ 12,865
---------
Total value (Note 1A)............ $ 327,111
Cash................................. 17,078
Interest receivable.................. 7,423
Deferred organizational costs (Note 1D) 6,034
Receivable from investment adviser... 15,810
---------
Total Assets....................... $ 373,456
---------
LIABILITIES:
Income distribution payable.......... $ 1,461
Trustee fee payable.................. 625
Custodian fee payable................ 2,832
Accrued expenses..................... 2,640
---------
Total Liabilities.................. $ 7,558
---------
NET ASSETS.............................. $ 365,898
=========
NET ASSETS CONSIST OF:
Paid-in Capital......................... $ 367,567
Accumulated net realized loss on investment
transactions......................... (14,534)
Unrealized appreciation of investments.. 12,865
---------
Net assets applicable to outstanding
shares............................... $ 365,898
=========
SHARES OF BENEFICIAL INTEREST
OUTSTANDING.......................... 38,345
=========
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST............... $ 9.54
=========
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1995 (UNAUDITED)
-------------------------------------------------------------------------------
INVESTMENT INCOME:
<S> <C>
Income --
Interest............................. $ 16,189
---------
Expenses --
Investment adviser fee (Note 3)...... $ 1,115
Administrator fee (Note 3)........... 123
Amortization of organization expense
(Note 1D).......................... 857
Compensation of Trustees not affiliated
with the Investment Adviser or
Administrator........................ 1,614
Custodian fee........................ 8,855
Transfer and dividend disbursing
agent fees........................... 625
Registration costs................... 50
Legal................................ 710
Audit services....................... 6,503
Miscellaneous........................ 766
---------
Total expenses................... $ 21,218
---------
Deduct --
Reduction of investment adviser fee.. $ 1,115
Reduction of administrator fee....... 124
Allocation of expense to the adviser. 17,755
---------
Total deducted................... $ 18,994
---------
Net expenses..................... $ 2,224
---------
Net investment income.......... $ 13,965
---------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized loss on investment
transactions........................... $(13,758)
Change in unrealized appreciation of
investments ............................ 52,180
---------
Net realized and unrealized gain
on investments ...................... $ 38,422
---------
Net increase in net assets from
operations ......................... $ 52,387
=========
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT TOTAL RETURN BOND PORTFOLIO
===============================================================================
<TABLE>
<CAPTION>
Six Months Year
Ended Ended
STATEMENT OF CHANGES IN NET ASSETS June 30, 1995 December 31, 1994
(UNAUDITED)
-----------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
<S> <C> <C>
From operations --
Net investment income........................................ $ 13,965 $ 18,595
Net realized loss on investment transactions................. (13,758) (777)
Change in unrealized appreciation (depreciation) of investments 52,180 (38,541)
---------- ----------
Increase (decrease) in net assets from operations.......... $ 52,387 $ (20,723)
Distributions to shareholders from net investment income (Note 2) (13,965) (18,595)
Net increase (decrease) from fund share transactions (Note 4).. (192,907) 392,475
---------- ----------
Net increase (decrease) in net assets...................... $ (154,485) $ 353,157
NET ASSETS:
At beginning of period......................................... 520,383 167,226
---------- ----------
At end of period............................................... $ 365,898 $ 520,383
========== ==========
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT TOTAL RETURN BOND PORTFOLIO
===============================================================================
<TABLE>
<CAPTION>
For the Period from
Six Months Year Dec. 7, 1993
Ended Ended (start of business) to
FINANCIAL HIGHLIGHTS June 30, 1995 Dec. 31, 1994 Dec. 31, 1993(2)
(UNAUDITED)
--------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of period...................$ 8.840 $ 9.930 $ 10.000
---------- ---------- ----------
Income from Investment Operations:
Net investment income(1)............................$ 0.251 $ 0.398 $ 0.019
Net realized and unrealized gain (loss) on investments 0.700 (1.090) (0.070)
---------- ---------- ----------
Total income (loss) from investment operations....$ 0.951 $ (0.692) $ (0.051)
---------- ---------- ----------
Less Distributions to Shareholders:
From net investment income..........................$ (0.251) $ (0.398) $ (0.019)
---------- ---------- ----------
Net asset value, end of period.........................$ 9.540 $ 8.840 $ 9.930
=========== =========== ===========
Total Return(3)........................................ 10.9% (7.1%) (0.5%)
Ratios/Supplemental Data:
Net assets, end of year (000 omitted)...............$ 366 $ 520 $ 167
Ratio of net expenses to average net assets........ 0.90%(4) 0.90% 0.70%(4)
Ratio of net investment income to average net assets 5.63%(4) 4.49% 2.50%(4)
Portfolio Turnover Rate............................. 140% 23% 0%
<FN>
(1) During the periods ended June 30, 1995 and December 31, 1994, the Investment
Adviser and the Administrator reduced their fees, and the Investment Adviser
was allocated a portion of each Portfolio's operating expenses. Had such
actions not been undertaken, the net investment loss per share and the
ratios would have been as follows:
Net investment loss per share.......................$ (0.090) $ (0.111)
=========== ===========
Ratios (As a percentage of average net assets):
Expenses.......................................... 8.56% (4) 7.00%
=========== ===========
Net investment loss............................... (2.03%)(4) (1.61%)
=========== ===========
(2) Calculations based on average shares outstanding methodology.
(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 payable date. The total investment
return does not reflect expenses that apply to the separate account or
related policies. If these charges had been included, the total return would
be reduced.
(4) Annualized.
</FN>
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT SELECTED BLUE CHIP PORTFOLIO (WSBCP)
PORTFOLIO OF INVESTMENTS
JUNE 30, 1995 (UNAUDITED)
===============================================================================
<TABLE>
<CAPTION>
Shares Value
-------------------------------------------------------------------------------
EQUITY INTERESTS -- 88.3%
<S> <C> <C>
APPAREL -- 2.4%
Reebok International Ltd..... 500 $ 17,000
Russell Corporation.......... 400 11,500
VF Corp...................... 300 16,125
-----------
$ 44,625
-----------
AUTOMOTIVE -- 1.9%
Eaton Corporation............ 300 $ 17,438
Modine Manufacturing Co...... 500 18,375
-----------
$ 35,813
-----------
BEVERAGES -- 1.8%
Anheuser-Busch Companies..... 300 $ 17,052
Brown-Forman Corp............ 500 16,688
-----------
$ 33,740
-----------
CHEMICALS -- 4.1%
Bandag, Incorporated......... 200 $ 12,500
Clorox Company............... 300 19,575
Lubrizol Corporation (The)... 400 14,150
PPG Industries, Incorporated. 400 17,200
Sherwin-Williams Company..... 400 14,250
-----------
$ 77,675
CONSTRUCTION -- 0.8%
Fleetwood Enterprises, Inc... 800 $ 15,800
-----------
DIVERSIFIED -- 5.7%
Crane Co..................... 600 $ 21,750
Johnson Controls, Inc........ 300 16,950
National Service Industries.. 500 14,438
Rockwell International Corp.. 400 18,300
Standex International Corp... 600 18,900
Teleflex Inc................. 400 17,200
-----------
$ 107,538
-----------
DRUGS, COSMETICS & HEALTH CARE -- 6.6%
Alberto Culver Company....... 700 $ 18,025
Bard (C.R.) Inc.............. 500 15,000
Becton Dickinson & Co........ 400 23,300
Bristol-Myers Squibb Co...... 300 20,438
Johnson & Johnson............ 200 13,525
Merck & Company.............. 400 19,600
Upjohn Company (The)......... 400 15,150
-----------
$ 125,038
-----------
ELECTRICAL -- 1.3%
Emerson Electric Co.......... 200 $ 14,300
Juno Lighting, Inc........... 600 9,600
-----------
$ 23,900
-----------
ELECTRONICS -- 6.4%
BMC Industries, Inc.......... 900 $ 22,613
Hewlett-Packard Co........... 400 29,800
Intel Corporation............ 400 25,325
Raytheon Company............. 300 23,288
Sun Microsystems, Inc.*...... 400 19,400
-----------
$ 120,426
-----------
FINANCIAL -- 16.6%
AFLAC Incorporated........... 400 $ 17,500
Amer International Group..... 200 22,800
Bancorp Hawaii, Inc.......... 500 15,000
Commerce Bancshares.......... 420 13,230
Compass Bancshares, Inc...... 700 20,213
Edwards (A.G.) Inc........... 800 18,000
Fifth Third Bancorp.......... 200 11,250
First Colony Corp............ 700 16,800
First Hawaiian, Inc*......... 500 13,375
First Virginia Banks, Inc.... 400 15,000
MBIA, Inc.................... 300 19,950
NBD Bancorp, Inc............. 600 19,200
Raymond James Financial...... 1,000 19,375
Southern National Corp....... 700 16,800
Southtrust Corp.............. 900 20,813
<PAGE>
FINANCIAL -- continued
Star Banc Corp............... 400 18,400
Suntrust Banks, Inc.......... 300 17,475
West One Bancorp............. 500 16,688
-----------
$ 311,869
-----------
FOOD -- 3.7%
Dean Foods Company........... 400 $ 11,200
Hormel (George A.) & Co...... 800 20,900
Pioneer Hi-Bred Int'l........ 500 21,000
Universal Foods Corp......... 500 16,188
-----------
$ 69,288
-----------
MACHINERY & EQUIPMENT -- 2.7%
Briggs & Stratton Corp....... 600 $ 20,700
Dover Corporation............ 200 14,550
Pitney Bowes, Inc............ 400 15,350
-----------
$ 50,600
-----------
METAL PRODUCTS MANUFACTURERS -- 3.8%
CLARCOR...................... 800 $ 18,300
Kaydon Corporation........... 800 23,800
Stanley Works (The).......... 400 15,150
Watts Industries Inc......... 600 15,038
-----------
$ 72,288
-----------
OIL, GAS, COAL & RELATED SERVICES -- 0.8%
Exxon Corporation............ 200 $ 14,125
-----------
PAPER -- 1.0%
Kimberly-Clark Corporation... 300 $ 17,963
-----------
PRINTING & PUBLISHING -- 6.1%
Banta Corporation............ 400 $ 13,300
Ennis Business Forms......... 1,100 13,613
Gannett Company, Inc......... 300 16,275
Harland (John H.) Co......... 700 16,013
Lee Enterprises.............. 500 19,063
Reynolds & Reynolds.......... 600 17,700
Wallace Computer Services.... 500 19,188
-----------
$ 115,152
-----------
RECREATION -- 3.2%
Carnival Corporation......... 600 $ 14,025
International Dairy Queen*... 800 15,600
Luby's Cafeterias Inc........ 700 14,088
Sturm Ruger & Company, Inc... 500 16,313
-----------
$ 60,026
-----------
RETAILERS -- 4.4%
Dress Barn (The)*............ 1,400 $ 13,650
Giant Food Inc............... 600 17,025
Hannaford Brothers........... 600 17,100
May Department Stores........ 500 20,813
Melville Corporation......... 400 13,700
-----------
$ 82,288
-----------
TRANSPORTATION -- 1.3%
Air Express International.... 1,050 $ 24,675
-----------
UTILITIES - COMMUNICATION -- 3.7%
Ameritech Corporation........ 400 $ 17,600
Lincoln Telecommunications... 1,000 15,750
SBC Communications Inc....... 400 19,050
Sprint Corporation........... 500 16,813
-----------
$ 69,213
-----------
<PAGE>
UTILITIES - ELECTRIC POWER -- 4.6%
Central & SouthWest.......... 600 $ 15,750
DQE Inc...................... 900 21,150
Duke Power Company........... 400 16,600
Nipsco Industries............ 500 17,000
Wisconsin Energy............. 600 16,800
-----------
$ 87,300
-----------
MISCELLANEOUS -- 5.4%
Dionex Corporation*.......... 400 $ 18,300
Marshall Industries*......... 800 26,800
Medicine Shoppe Int'l........ 500 17,563
Pioneer Standard Electronics. 900 22,050
Stanhome Inc................. 500 16,500
-----------
$ 101,213
-----------
TOTAL EQUITY INTERESTS -- 88.3%
(identified cost, $1,462,057) $ 1,660,555
OTHER ASSETS
LESS LIABILITIES -- 11.7% 219,941
-----------
NET ASSETS -- 100.0% $ 1,880,496
============
* Non-income-producing security.
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT SELECTED BLUE CHIP PORTFOLIO
===============================================================================
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
June 30,1995 (UNAUDITED)
-------------------------------------------------------------------------------
ASSETS:
<S> <C>
Investments --
Identified cost.................... $1,462,057
Unrealized appreciation............ 198,498
---------
Total value (Note 1A)............ $1,660,555
Cash................................. 206,889
Dividends receivable................. 3,431
Deferred organizational costs (Note 1D) 6,168
Receivable from investment adviser... 9,110
---------
Total Assets....................... $1,886,153
---------
LIABILITIES:
Trustee fee payable.................. $ 625
Custodian fee payable................ 2,393
Accrued expenses..................... 2,639
---------
Total Liabilities.................. $ 5,657
---------
NET ASSETS.............................. $1,880,496
==========
NET ASSETS CONSIST OF:
Paid-in Capital......................... $1,701,789
Accumulated net realized loss on investment
transactions......................... (34,128)
Undistributed net investment income..... 14,337
Unrealized appreciation of investments.. 198,498
---------
Net assets applicable to outstanding
shares............................... $1,880,496
==========
SHARES OF BENEFICIAL INTEREST
OUTSTANDING.......................... 175,614
==========
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST............... $10.71
==========
</TABLE>
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1995 (UNAUDITED)
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INVESTMENT INCOME:
<S> <C>
Income --
Dividend............................. $ 17,811
---------
Expenses --
Investment adviser fee (Note 3)...... $ 5,176
Administrator fee (Note 3)........... 398
Amortization of organization expense
(Note 1D).......................... 867
Compensation of Trustees not affiliated with
the Investment Adviser or Administrator 1,614
Custodian fee........................ 8,453
Legal................................ 715
Transfer and dividend disbursing agent fees 625
Audit................................ 5,200
Registration costs................... 31
Miscellaneous........................ 823
---------
Total expenses................... $ 23,902
---------
Deduct --
Reduction of investment adviser fee.. $ 5,176
Reduction of administrator fee....... 398
Allocation of expense to the adviser. 9,110
---------
Total deducted................... $ 14,684
---------
Net expenses..................... $ 9,218
---------
Net investment income.......... $ 8,593
---------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized loss on investment
transactions .......................... $ (9,377)
Change in unrealized appreciation
of investments.......................... 224,402
---------
Net realized and unrealized gain
on investments....................... $ 215,025
---------
Net increase in net assets from
operations .......................... $ 223,618
==========
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT SELECTED BLUE CHIP PORTFOLIO
===============================================================================
<TABLE>
<CAPTION>
For the Period from
Six Months January 6, 1994
Ended (start of business) to
STATEMENT OF CHANGES IN NET ASSETS June 30, 1995 December 31, 1994
(UNAUDITED)
---------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
<S> <C> <C>
From operations --
Net investment income........................................ $ 8,593 $ 9,806
Net realized loss on investment transactions................. (9,377) (24,751)
Change in unrealized appreciation (depreciation) of investments 224,402 (25,904)
---------- ----------
Increase (decrease) in net assets from operations.......... $ 223,618 $ (40,849)
Distributions to shareholders from net investment income....... -- (9,294)
Undistributed net investment income included in price of shares
sold and redeemed (Note 1E).................................. 731 4,501
Net increase from fund share transactions (exclusive of amounts
allocated to net investment income) (Note 4)................. 203,682 1,498,107
---------- ----------
Net increase in net assets................................. $ 428,031 $1,452,465
NET ASSETS:
At beginning of period......................................... 1,452,465 --
---------- ----------
At end of period............................................... $1,880,496 $1,452,465
========== ===========
UNDISTRIBUTED NET INVESTMENT INCOME
INCLUDED IN NET ASSETS......................................... $ 14,337 $ 5,013
========== ===========
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT SELECTED BLUE CHIP PORTFOLIO
===============================================================================
<TABLE>
<CAPTION>
For the Period from
Six Months January 6, 1994
Ended (start of business) to
FINANCIAL HIGHLIGHTS June 30, 1995 December 31, 1994
(UNAUDITED)
--------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value, beginning of period.............................. $ 9.320 $ 10.000
---------- ----------
Income from Investment Operations:
Net investment income(1)....................................... $ 0.049 $ 0.092
Net realized and unrealized gain (loss) on investments......... 1.341 (0.712)
---------- ----------
Total income (loss) from investment operations............... $ 1.390 $ (0.620)
Less Distributions to Shareholders:
From net investment income..................................... -- (0.060)
---------- ----------
Net asset value, end of period.................................... $ 10.710 $ 9.320
=========== ===========
Total Return(3)................................................... 14.9% (6.2%)
Ratios/Supplemental Data:
Net assets, end of year (000 omitted).......................... $1,880 $1,452
Ratio of net expenses to average net assets.................... 1.15% (2) 1.15% (2)
Ratio of net investment income to average net assets........... 1.08% (2) 1.16% (2)
Portfolio Turnover Rate........................................ 29% 74%
<FN>
(1) During each of the periods presented, the Investment Adviser and the
Administrator reduced their fees, and the Investment Adviser was allocated a
portion of each Portfolio's operating expenses. Had such actions not been
undertaken, the net investment loss per share and the ratios would have been
as follows:
Net investment loss per share.................................... $ (0.035) $ (0.078)
=========== ===========
Ratios (As a percentage of average net assets):
Expenses....................................................... 3.00% (2) 3.30% (2)
=========== ===========
Net investment loss............................................ (0.76%)(2) (0.99%)(2)
=========== ===========
(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 payable date. The total investment
return does not reflect expenses that apply to the separate account or
policies.
If these charges had been included, the total return would be reduced.
</FN>
See notes to financial statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
WRIGHT INTERNATIONAL BLUE CHIP PORTFOLIO (WIBCP)
PORTFOLIO OF INVESTMENTS
JUNE 30, 1995 (UNAUDITED)
===============================================================================
Shares Value
-------------------------------------------------------------------------------
EQUITY INTERESTS -- 82.2%
<S> <C> <C>
AUSTRALIA -- 6.5%
Broken Hill Proprietary (ADR) 550 $ 27,156
Email Ltd. (ADR)*............ 3,600 17,454
F.H. Faulding (ADR).......... 1,200 21,265
Pacific Dunlop Ltd. (ADR).... 1,800 15,525
-----------
$ 81,400
-----------
CANADA -- 1.8%
Corel Systems Corp*.......... 1,300 $ 22,425
-----------
DENMARK -- 3.7%
ISS Int'l. Service Systems*.. 640 $ 16,716
Jens Villadsens Fabriker*.... 100 29,638
-----------
$ 46,354
-----------
FRANCE -- 2.9%
L'Oreal (ADR)................ 360 $ 18,076
LVMH Moet-Hennessy
Louis Vuitton............. 500 18,125
-----------
$ 36,201
-----------
GERMANY -- 2.6%
Bayerische Motoren Werke*.... 60 $ 33,014
-----------
HONG KONG -- 7.9%
Hang Lung Devel. Co. (ADR)... 2,700 $ 21,460
Hong Kong Aircraft Engineering* 5,600 14,547
Hong Kong & China Gas Co. (ADR) 12,238 19,532
Hong Kong Electric Hold. (ADR) 5,700 19,374
Swire Pacific Limited (ADR).. 3,100 23,638
-----------
$ 98,551
-----------
IRELAND -- 1.7%
Greencore PLC*............... 2,750 $ 20,866
-----------
ITALY -- 2.1%
Sirti SpA*................... 3,500 $ 26,025
-----------
JAPAN -- 7.5%
Komatsu Seiren Co*........... 2,000 $ 25,273
Kurita Water Industries Ltd.* 1,000 25,746
Nintendo Corp. Ltd. (ADR)*... 2,800 20,077
Seven Eleven Japan........... 330 23,594
-----------
$ 94,690
-----------
MALAYSIA -- 6.1%
Amalgamated Industrial Steel* 20,500 $ 30,438
Genting Berhad (ADR)......... 2,000 19,770
Perlis Plantations Berhad (ADR) 8,000 26,579
-----------
$ 76,787
-----------
MEXICO -- 3.5%
Cifra SA..................... 9,400 $ 12,961
Kimberly Clark de Mexico..... 700 16,013
Telefonos de Mexico.......... 500 14,813
-----------
$ 43,787
-----------
NETHERLANDS -- 11.0%
Elsevier (ADR)............... 1,250 $ 29,531
Koninklijke Ahold (ADR)*..... 800 28,400
NV Verenigd Bezit VNU*....... 250 29,950
Unilever NV.................. 200 26,025
Wolters Kluwer (ADR)*........ 280 24,686
-----------
$ 138,592
-----------
SINGAPORE -- 1.4%
Singapore Press Holdings*.... 1,200 $ 17,946
-----------
SPAIN -- 2.0%
Empresa Nacional de Electricidad
(ADR)..................... 500 $ 24,625
-----------
<PAGE>
SWEDEN -- 3.3%
Astra AB..................... 690 $ 20,780
H & M Hennes & Mauritz AB*... 350 20,503
-----------
$ 41,283
-----------
SWITZERLAND -- 3.3%
Nestles (ADR)................ 400 $ 20,814
Sandoz (ADR)................. 600 20,675
-----------
$ 41,488
-----------
UNITED KINGDOM -- 14.9%
Cable & Wireless (ADR)....... 1,030 $ 21,115
Christian Salvesen (ADR)*.... 1,130 23,910
Farnell Electronics*......... 2,000 20,212
Halma*....................... 7,400 22,648
Kwik Save Group*............. 2,800 28,788
Marks & Spencer (ADR)........ 700 27,028
Tesco (ADR).................. 4,400 20,299
Wolseley*.................... 4,200 23,197
-----------
$ 187,197
-----------
TOTAL EQUITY INTERESTS -- 82.2%
(identified cost, $1,040,772) $ 1,031,231
OTHER ASSETS
LESS LIABILITIES -- 17.8% 224,060
-----------
NET ASSETS -- 100.0% $ 1,255,291
===========
* Non-income-producing security.
ADR - American Depositary Receipt
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT INTERNATIONAL BLUE CHIP PORTFOLIO (WIBCP)
===============================================================================
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
June 30,1995 (UNAUDITED)
-------------------------------------------------------------------------------
ASSETS:
<S> <C>
Investments --
Identified cost.................... $1,040,772
Unrealized depreciation............ (9,541)
---------
Total value (Note 1A)............ $1,031,231
Cash................................. 211,554
Dividends receivable................. 5,021
Deferred organizational costs (Note 1D) 6,163
Receivable from investment adviser... 7,707
Receivable for foreign taxes withheld 556
---------
Total assets....................... $1,262,232
---------
LIABILITIES:
Trustees fee payable................. $ 625
Custodian fee payable................ 3,676
Accrued expenses..................... 2,640
---------
Total liabilities.................. $ 6,941
---------
NET ASSETS.............................. $1,255,291
==========
NET ASSETS CONSIST OF:
Paid-in Capital......................... $1,244,826
Accumulated net realized gain on investment
transactions......................... 12,220
Undistributed net investment income..... 7,786
Unrealized depreciation of investments.. (9,541)
---------
Net assets applicable to
outstanding shares................... $1,255,291
==========
SHARES OF BENEFICIAL INTEREST
OUTSTANDING.......................... 128,763
==========
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST............... $ 9.75
==========
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1995 (UNAUDITED)
-------------------------------------------------------------------------------
INVESTMENT INCOME:
<S> <C>
Income --
Dividend............................. $ 17,657
Less: Foreign taxes.................. (1,711)
---------
Gross income....................... $ 15,946
---------
Expenses --
Investment adviser fee (Note 3)...... $ 4,910
Administrator fee (Note 3)........... 307
Amortization of organization expense
(Note 1D).......................... 867
Compensation of Trustees not affiliated with
the Investment Adviser or Administrator 1,614
Custodian fee........................ 11,314
Legal................................ 713
Audit................................ 5,200
Transfer and dividend disbursing agent fees 625
Registration costs................... 63
Miscellaneous........................ 816
---------
Total expenses................... $ 26,429
---------
Deduct --
Reduction of investment adviser fee.. $ 4,910
Reduction of administrator fee....... 307
Allocation of expense to the adviser. 9,795
---------
Total deducted................... $ 15,012
---------
Net expenses..................... $ 11,417
---------
Net investment income.......... $ 4,529
---------
REALIZED AND UNREALIZED GAIN ON
INVESTMENTS:
Net realized gain on investment
transactions........................... $ 12,220
Change in unrealized depreciation
of investments ........................ 63,227
---------
Net realized and unrealized gain
on investments....................... $ 75,447
---------
Net increase in net assets from
operations........................... $ 79,976
==========
See notes to financial statements
</TABLE>
WRIGHT INTERNATIONAL BLUE CHIP PORTFOLIO
===============================================================================
<TABLE>
<CAPTION>
For the Period from
Six Months January 6, 1994
Ended (start of business) to
STATEMENT OF CHANGES IN NET ASSETS June 30, 1995 December 31, 1994
(UNAUDITED)
------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
<S> <C> <C>
From operations --
Net investment income........................................ $ 4,529 $ 1,299
Net realized gain on investments............................. 12,220 --
Change in unrealized appreciation (depreciation) of investments 63,227 (72,751)
---------- ----------
Increase (decrease) in net assets from operations.......... $ 79,976 $ (71,452)
Undistributed net investment income included in price of shares
sold and redeemed (Note 1E).................................. (276) 2,907
Distributions to shareholders from net investment income....... -- (673)
Net increase (decrease) from fund share transactions (exclusive of
amounts allocated to net investment income) (Note 4)......... (53,355) 1,298,164
---------- ---------
Net increase in net assets................................. $ 26,345 $1,228,946
NET ASSETS:
At beginning of period......................................... 1,228,946 --
---------- ----------
At end of period............................................... $ 1,255,291 $1,228,946
=========== ===========
UNDISTRIBUTED NET INVESTMENT INCOME
INCLUDED IN NET ASSETS......................................... $ 7,786 $ 3,533
=========== ===========
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT INTERNATIONAL BLUE CHIP PORTFOLIO
===============================================================================
<TABLE>
<CAPTION>
For the Period from
Six Months January 6, 1994
Ended (start of business) to
FINANCIAL HIGHLIGHTS June 30, 1995 December 31, 1994
(UNAUDITED)
---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value, beginning of period.............................. $ 9.140 $ 10.000
---------- ----------
Income from Investment Operations:
Net investment income(1)....................................... $ 0.034 $ 0.031
Net realized and unrealized gain (loss) on investments......... 0.576 (0.886)
---------- ----------
Total income (loss) from investment operations............... $ 0.610 $ (0.855)
Less distributions to shareholders:
From net investment income................................... -- (0.005)
---------- ----------
Net asset value, end of period.................................... $ 9.750 $ 9.140
=========== ===========
Total Return(3)................................................... 6.7% (8.1%)
Ratios/Supplemental Data:
Net assets, end of period (000 omitted)........................ $1,255 $1,229
Ratio of net expenses to average net assets.................... 1.86% (2) 1.80% (2)
Ratio of net investment income to average net assets........... 0.74% (2) 0.19% (2)
Portfolio Turnover Rate........................................ 7% 0%
<FN>
(1) During each of the periods presented, the Investment Adviser and the
Administrator reduced their fees, and the Investment Adviser was allocated a
portion of each Portfolio's operating expenses. Had such actions not been
undertaken, the net investment loss per share and the ratios would have been
as follows:
Net investment loss per share.................................... $ (0.079) $ (0.434)
=========== ===========
Ratios (As a percentage of average net assets):
Expenses....................................................... 4.31% (2) 4.65% (2)
=========== ===========
Net investment loss............................................ (1.71%)(2) (2.66%)(2)
=========== ===========
(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 payable date. The total investment
return does not reflect expenses that apply to the separate account or
related policies. If these charges had been included, the total return would
be reduced.
</FN>
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT MANAGED BLUE CHIP SERIES TRUST
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
===============================================================================
(1) SIGNIFICANT ACCOUNTING POLICIES
The Wright Managed Blue Chip Series 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 diversified separate
portfolios: Wright Near Term Bond Portfolio (WNTBP), Wright Total Return Bond
Portfolio (WTRBP), Wright Selected Blue Chip Portfolio (WSBCP), and Wright
International Blue Chip Portfolio (WIBCP) (the "Portfolios"). The shares of the
Portfolios are sold only to variable accounts established by PFL Life Insurance
Company and other participating insurance companies. 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, other than fixed-income
investments listed on securities exchanges or in the NASDAQ National
Market are valued at closing sale prices. Unlisted or listed securities
for which closing sale prices are not available are valued at the last
reported bid price. Fixed income investments (other than short-term
obligations) including listed investments, and investments for which
price quotations are available, will normally be valued on the basis of
market valuations furnished by a pricing service. Investments for which
valuations are not readily available will be appraised at their fair
value as determined in good faith by or at the direction of the
Trustees. Short-term obligations maturing in sixty days or less are
valued at amortized cost, which approximates 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) available to regulated investment
companies and distribute to shareholders each year all of its taxable
income, including any net realized gain on investments. Accordingly, no
provision for federal income tax is necessary. Withholding taxes on
foreign dividends have been provided for in accordance with the Trust's
understanding of the applicable country's tax rules
<PAGE>
and rates. At December 31, 1994, the Trust, for federal income tax
purposes, had a capital loss carryover of $5,872 for WNTBP, $777 for
WTRBP, and $24,751 for WSBCP, 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 December 31, 2002.
D. Deferred Organization Expenses -- Costs incurred by the Portfolios in
connection with their organization are being amortized on a straight
line basis over five years.
E. Equalization -- The Portfolios follow the accounting practice known as
equalization by which a portion of the proceeds from sales and costs of
redemptions of Portfolio shares, equivalent on a per-share basis 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 Portfolio shares.
F. Other -- Investment transactions are accounted for on a trade date
basis. Interest income is determined on the basis of interest accrued
and discount earned, adjusted for amortization of premium or accretion
of discount on long-term debt securities when required for federal
income tax purposes. 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 Portfolios are informed of the ex-dividend date.
(2) DISTRIBUTIONS
Dividends from investment income of WSBCP and WIBCP are expected to be
declared annually. Dividends from investment income of WNTBP and WTRBP will be
declared daily and paid monthly. However, the Trustees may decide to declare
dividends at other intervals. All net realized long or short term capital gains
of each Portfolio, if any, will be declared and distributed at least annually.
All distributions will be distributed in the form of additional full and
fractional shares of the Portfolios and not in cash. The Trust requires that
differences in the recognition or classification of income between the financial
statements and tax earnings and profits which result in temporary
overdistributions for financial statement purposes, are classified as
distributions in excess of net investment income or accumulated net realized
gains.
<PAGE>
(3) INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The Trust has engaged Wright Investors' Service (Wright) to perform
investment management, investment advisory, and other services. For its
services, Wright is compensated based upon a percentage of average monthly net
assets which rate is adjusted as average monthly net assets exceed certain
levels. 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 average monthly net assets which rate is reduced as
average monthly net assets exceed certain levels. For the period ended June 30,
1995, the effective annual rate for advisory and administration charges for each
Portfolio was as follows:
<TABLE>
<CAPTION>
Series Investment Advisory Administration
----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
WNTBP 0.45% 0.05%
WTRBP 0.45% 0.05%
WSBCP 0.65% 0.05%
WIBCP 0.80% 0.05%
----------------------------------------------------------------------------------------------------------------
</TABLE>
To enhance the net income of the Portfolios, Wright and Eaton Vance reduced
their fees and Wright was allocated a portion of each Portfolio's expenses as
follows:
<TABLE>
<CAPTION>
WNTBP WTRBP WSBCP WIBCP
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Reduction of Investment Adviser fees $ 780 $ 1,115 $ 5,176 $4,910
Allocation of expense to the Investment Adviser 18,140 17,755 9,110 9,795
Reduction of Administrator fees 87 124 398 307
-----------------------------------------------------------------------------------------------------------------
</TABLE>
The Trust has engaged Investors Bank & Trust Company (IBT), an affiliate of
Eaton Vance, to serve as custodian and transfer agent of the Trust. Pursuant to
the agreement, IBT receives a fee reduced by credits which are determined based
on the average daily cash balances the Trust maintains with IBT. Certain of the
Trustees and officers of the Trust are directors/trustees and/or officers of the
above organizations.
<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 Portfolio shares were as follows:
<TABLE>
<CAPTION>
Six Months Ended Year Ended
June 30, 1995 (UNAUDITED) December 31, 1994
------------------------- -----------------
Shares Amount Shares Amount
-------------------------------------------------------------------------------------------------------------------
Wright Near Term Bond Portfolio(1) --
<S> <C> <C> <C> <C>
Sales.................................. 5,506 $ 53,852 97,510 $ 945,206
Issued to shareholders in payment
of distributions declared............ 767 7,318 1,542 14,658
Redemptions............................ (21,130) (201,162) (50,644) (484,260)
--------- ----------- --------- -----------
Net increase (decrease)............ (14,857) $ (139,992) 48,408 $ 475,604
========== ============ ========== ============
Wright Total Return Bond Portfolio --
Sales.................................. 462 $ 4,190 81,960 $ 762,268
Issued to shareholders in payment
of distributions declared............ 1,332 12,219 2,069 18,830
Redemptions............................ (22,295) (209,316) (42,018) (388,623)
--------- ----------- --------- -----------
Net increase (decrease)............ (20,501) $ (192,907) 42,011 $ 392,475
========== ============ ========== ============
Wright Selected Blue Chip Portfolio(1) --
Sales.................................. 37,736 $ 381,529 160,250 $ 1,538,743
Issued to shareholders in payment
of distributions declared............ -- -- 1,018 9,263
Redemptions............................ (18,009) (177,847) (5,381) (49,899)
--------- ----------- --------- -----------
Net increase....................... 19,727 $ 203,682 155,887 $1,498,107
========== ============ ========== ============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Six Months Ended Year Ended
June 30, 1995 (UNAUDITED) December 31, 1994
------------------------- -----------------
Shares Amount Shares Amount
--------------------------------------------------------------------------------------------------------------------------
Wright International Blue Chip Portfolio(1) --
<S> <C> <C> <C> <C>
Sales.................................. 13,411 $ 124,729 143,858 $ 1,388,265
Issued to shareholders in payment
of distributions declared............ -- -- 74 671
Redemptions............................ (19,175) (178,084) (9,405) (90,772)
--------- ----------- --------- -----------
Net increase....................... (5,764) $ (53,355) 134,527 $1,298,164
========== ============ ========== ============
<FN>
(1) Period from January 6, 1994 (start of business) to December 31, 1994.
</FN>
</TABLE>
(5) INVESTMENT TRANSACTIONS
Purchases and sales and maturities of investments, other than short-term
obligations, for the six months ended June 30,1995, were as follows:
<TABLE>
<CAPTION>
Wright Wright Wright Wright
Near Term Total Return Selected International
Bond Portfolio Bond Portfolio Blue Chip Portfolio Blue Chip Portfolio
------------------------------------------------------------------------------------------------------------------
Purchases --
<S> <C> <C> <C> <C>
Non-U.S. Gov't Obligations.... $ -- $ 19,900 $ 461,647 $ 76,320
============== ============== ============== ==============
U.S. Gov't Obligations........ $ 274,149 $ 599,557 $ -- $ --
============== ============== ============== ==============
Sales --
Non-U.S. Gov't Obligations.... $ -- $ -- $ 442,907 $ 290,037
============== ============== ============== ==============
U.S. Gov't Obligations........ $ 455,929 $ 834,142 $ -- $ --
============== ============== ============== ==============
</TABLE>
<PAGE>
(6) FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES
The cost and unrealized appreciation (depreciation) in value of the
investments owned at June 30,1995, as computed on a federal income tax basis,
are as follows:
<TABLE>
<CAPTION>
Wright Wright Wright Wright
Near Term Total Return Selected International
Bond Portfolio Bond Portfolio Blue Chip PortfolioBlue Chip Portfolio
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Aggregate Cost................... $ 247,353 $ 314,246 $ 1,462,057 $ 1,040,772
============== ============== ============== ==============
Gross unrealized appreciation.... $ 7,487 $ 14,970 $ 217,514 $ 94,680
Gross unrealized depreciation.... -- (2,105) (19,016) (104,221)
------------- ------------- ------------- -------------
Net unrealized appreciation
(depreciation)................ $ 7,487 $ 12,865 $ 198,498 $ (9,541)
============== ============== ============== ==============
</TABLE>
(7) LINE OF CREDIT
The Trust participates with other funds managed by Wright in a line of
credit with a bank which allows the funds to borrow up to $20,000,000
collectively. The line of credit consists of a $10,000,000 committed facility
and a $10,000,000 uncommitted facility. Interest is charged to each Portfolio
based on its borrowings, at a rate equal to the bank's base rate. In addition,
the Portfolios pay a fee computed at a rate of 1/4 of 1% on any borrowings in
excess of $10,000,000. The Portfolios did not have any borrowings outstanding
under the line of credit during the period ended June 30, 1995.
<PAGE>
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Description of art work on back cover of report
Solid blue box with the name of the Trust in the upper left hand corner of page
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SEMI-ANNUAL REPORT
OFFICERS AND TRUSTEES OF THE FUNDS
Peter M. Donovan, President and Trustee
H. Day Brigham, Jr., Vice President , Secretary and Trustee
A. M. Moody III, Vice President and Trustee
Judith R. Corchard, Vice President
Winthrop S. Emmet, Trustee
Jatin J. Mehta, CFA, Trustee
Lloyd F. Pierce, Trustee
George R. Prefer, 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
CUSTODIAN AND TRANSFER AGENT
Investors Bank & Trust Company
24 Federal 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. Shares of
the Trust are only available to the separate accounts of insurance
companies
