- --------------------------------------------------------------------------------
Description of the art work on front cover of the report
Solid blue box with the name of the Trust in the upper left hand corner of page.
- --------------------------------------------------------------------------------
ANNUAL
REPORT
DECEMBER 31, 1994
<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
================================================================================
January, 1995
Dear Shareholders:
Sales of variable annuities approached $75 billion industry-wide during
1994, the inaugural year of the PFL Wright Variable Annuity. Despite this
growth, 1994 was a trying year for investors, as the global securities markets
exhibited more risk than return during the year.
Fundamental investment quality and value generally received short shrift in
the U.S. stock market during 1994; securities of inferior quality often achieved
above-average price gains, as investors concentrated on cyclical profit
expansions as opposed to long-term growth potential. During the fourth quarter
of 1994, some weakening could be observed among the lower-quality and
speculative stocks that had previously enjoyed investor favor. Nevertheless, as
1995 began, high-quality securities were valued at price/earnings discounts of
as much as 20% to the stock market averages.
In the U.S. bond market, only the shortest maturity securities posted
positive investment returns during 1994, as six increases in short-term interest
rates by the Federal Reserve pushed the entire yield curve higher by an average
of two percentage points. In Wright's view, with long-term interest rates
exceeding the inflation rate by an above-average 4.5%-5.0% at year-end 1994,
further weakness in the bond market was likely to be fairly limited.
As 1994 drew to a close, 93% of the assets in the Wright Near Term Bond
Portfolio were invested in U.S. Treasury securities with an average maturity of
2.6 years. The portfolio had a yield to maturity of 6.2% and a duration of 2.3
years. The average maturity of the Wright Total Return Bond Portfolio at year
end was 6.2 years while the duration was just over 5 years. U.S. Treasury notes
accounted for 97% of the portfolio value and the average yield to maturity was
7.9%.
High-quality U.S. equities comprised 98% of the 1994 year-end market value
of the Wright Selected Blue Chip Portfolio. This portfolio is broadly
diversified among industry groups and economic sectors. Premium-grade equity
securities from 17 countries were included in the Wright International Blue Chip
Portfolio on December 31, 1994. The portfolio is essentially fully invested,
with equities accounting for 96% of market value at the beginning of 1995.
Looking ahead, Wright anticipates that a continuing low level of inflation
and a more moderate rate of economic expansion in the U.S. and around the world
will check the rising trend in short-term interest rates and produce a reduction
in long rates over the course of 1995. The long overdue return to favor of
high-quality equity securities is also expected to become evident during the
year.
Sincerely,
Peter M. Donovan, President
- --------------------------------------------------------------------------------
<PAGE>
WRIGHT MANAGED BLUE CHIP SERIES TRUST
<TABLE>
WRIGHT SELECTED BLUE CHIP PORTFOLIO
Growth of $10,000 invested 1/31/94 through 12/31/94
<CAPTION>
Total Return
Since Incept*
- --------------------------------------------------------------------------------
<S> <C>
Wright Selected Blue Chip Portfolio -6.1%
Lipper Growth Funds -4.3%
NYSE -3.3%
Wright U.S. Fiduciary Equity Index -1.9%
</TABLE>
The cumulative total return of a U.S. $10,000 investment in the
WRIGHT SELECTED BLUE CHIP PORTFOLIO on 1/31/94
would have declined to $9,391 by December 31, 1994
The following plotting points are used for comparison
in the total investment return mountain chart.
<TABLE>
Date Wright Selected Lipper Equity NYSE Wright U.S. Fiduciary
Blue Chip Portfolio Growth Funds Index Equity Index
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
01-31-94 $10,000 $10,000 $10,000 $10,000
12-31-94 $ 9,391 $ 9,571 $ 9,666 $ 9,815
</TABLE>
<TABLE>
WRIGHT INTERNATIONAL BLUE CHIP PORTFOLIO
Growth of $10,000 invested 1/31/94 through 12/31/94
<CAPTION>
Total Return
Since Incept*
- --------------------------------------------------------------------------------
<S> <C>
Wright Int'l Blue Chip Portfolio -8.5%
FT World Index -0.1%
Wright Int'l Fiduciary Equity Index -0.5%
</TABLE>
The cumulative total return of a U.S. $10,000 investment in
WRIGHT INTERNATIONAL BLUE CHIP PORTFOLIO on 1/31/94
would have declined to $9,154 by December 31, 1994
The following plotting points are used for comparison
in the total investment return mountain chart.
<TABLE>
Date Wright Int'l FT World Wright Int'l Fi
Blue Chip Portfolio Index Equity Index
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
01-31-94 $10,000 $10,000 $10,000
12-31-94 $ 9,154 $ 9,994 $ 9,955
</TABLE>
<TABLE>
WRIGHT NEAR TERM BOND PORTFOLIO
Growth of $10,000 invested 1/31/94 through 12/31/94
<CAPTION>
Total Return
Since Incept*
- --------------------------------------------------------------------------------
<S> <C>
Wright Near Term Bond Portfolio -3.8%
Lehman Gov't/Corp Index -4.9%
Morningstar Gov't (1-5 Yrs) Funds -3.1%
</TABLE>
The cumulative total return of a U.S. $10,000 investment in
WRIGHT NEAR TERM BOND PORTFOLIO on 1/31/94
would have declined to $9,623 by December 31, 1994
The following plotting points are used for comparison
in the total investment return mountain chart.
<TABLE>
Date Wright Near Term Lehman Gov't/Corp Morningstar Gov
Bond Portfolio Index (1-5 Yrs) Funds
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
01-31-94 $10,000 $10,000 $10,000
12-31-94 $ 9,623 $ 9,506 $ 9,694
</TABLE>
<TABLE>
WRIGHT TOTAL RETURN BOND PORTFOLIO
Growth of $10,000 invested 12/31/93 through 12/31/94
<CAPTION>
Total Return
Since Incept*
- --------------------------------------------------------------------------------
<S> <C>
Wright Total Return Bond Portfolio -7.1%
Lehman Gov't/Corp Index -3.5%
Lipper Fixed Income Funds -3.3%
</TABLE>
The cumulative total return of a U.S. $10,000 investment in
WRIGHT TOTAL RETURN BOND PORTFOLIO on 12/31/93
would have declined to $9,290 by December 31, 1994
The following plotting points are used for comparison
in the total investment return mountain chart.
<TABLE>
Date Wright Total Return Lehman Gov't/Corp Lipper Fixed
Bond Portfolio Index Income Funds
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
01-01-94 $10,000 $10,000 $10,000
12-31-94 $ 9,290 $ 9,649 $ 9,672
</TABLE>
NOTES: *: For comparison with other averages, the investment results are shown
from the first month-end since the Fund's inception. The investment results of
Wright Managed Blue Chip Series Trust, Lipper's average of 550 Equity Growth
Funds and 1,375 Fixed Income Funds and Morningstar's average of 97 Government
General Funds with average maturities of one to five years are net of all fees
and expenses charged to the Funds. No fees or expenses have been deducted from
the other averages. The Total Investment Return is the % return of an initial
$10,000 investment made at the beginning of the period to the ending redeemable
value assuming all dividends and distributions are reinvested. Returns for less
than one year are not annualized. Past performance is not predictive of future
performance.
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
WRIGHT NEAR TERM BOND PORTFOLIO (WNTBP)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1994
================================================================================================================
Face Coupon Maturity Market Current Yield To
Amount Description Rate Date Price Value Yield1 Maturity[1]
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C> <C> <C>
$ 50,000 U.S. Treasury Notes 5.500% 4/30/96 $ 97.484 $ 48,742 5.64% 7.51%
25,000 U.S. Treasury Notes 7.625% 4/30/96 100.172 25,043 7.61% 7.47%
175,000 U.S. Treasury Notes 6.375% 6/30/97 96.922 169,614 6.58% 7.75%
100,000 U.S. Treasury Notes 5.625% 8/31/97 94.844 94,844 5.93% 7.80%
50,000 U.S. Treasury Notes 5.125% 11/30/98 90.969 45,485 5.63% 7.85%
40,000 U.S. Treasury Notes 5.125% 12/31/98 90.812 36,324 5.64% 7.85%
----------
Total Investments (identified cost, $438,296)-- 93.0% $420,052 6.20% 7.74%
===== =====
Other Assets, less Liabilities-- 7.0% 31,436
----------
Net Assets-- 100.0% $451,488
==========
Average Maturity -- 2.6 Years
<FN>
[1] Unaudited.
</FN>
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT NEAR TERM BOND PORTFOLIO
================================================================================
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1994
- --------------------------------------------------------------------------------
<S> <C>
ASSETS:
Investments --
Identified cost.......................... $ 438,296
Unrealized depreciation.................. (18,244)
----------
Total value (Note 1A).................. $ 420,052
Cash....................................... 14,052
Interest receivable........................ 9,574
Deferred organizational costs (Note 1D).... 7,030
Receivable from investment adviser......... 7,825
----------
Total Assets............................. $ 458,533
----------
LIABILITIES:
Trustees fee payable....................... $ 312
Custodian fee payable...................... 4,600
Accrued expenses........................... 2,133
----------
Total Liabilities........................ $ 7,045
----------
NET ASSETS.................................... $ 451,488
==========
NET ASSETS CONSIST OF:
Paid-in Capital............................... $ 475,604
Accumulated net realized loss on investment
transactions............................... (5,872)
Unrealized depreciation of investments........ (18,244)
Net assets applicable to outstanding shares $ 451,488
==========
SHARES OF BENEFICIAL INTEREST
OUTSTANDING................................ 48,408
==========
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST..................... $ 9.33
==========
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
For the Period from January 6, 1994 (Start of Business)
to December 31, 1994
- --------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME:
Income --
Interest................................... $ 18,513
-----------
Expenses --
Investment adviser fee (Note 3)............ $ 1,921
Administrator fee (Note 3)................. 214
Compensation of trustees not affiliated with
the investment adviser or administrator.. 1,742
Custodian fee.............................. 15,485
Amortization of organization expense
(Note 1D)................................ 1,720
Transfer and dividend disbursing agent fees 625
Audit...................................... 306
Registration costs......................... 241
Miscellaneous.............................. 560
-----------
Total expenses......................... $ 22,814
-----------
Deduct --
Reduction of investment adviser fee........ $ 1,921
Reduction of administrator fee............. 214
Allocation of expense to the adviser....... 16,824
-----------
Total deducted......................... $ 18,959
-----------
Net expenses........................... $ 3,855
-----------
Net investment income................ $ 14,658
-----------
REALIZED AND UNREALIZED LOSS ON
INVESTMENTS:
Net realized loss on investment transactions.. $ (5,872)
Change in unrealized depreciation of investments (18,244)
-----------
Net realized and unrealized loss on
investments.............................. $ (24,116)
----------
Net decrease in net assets from operations. $ (9,458)
==========
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT NEAR TERM BOND PORTFOLIO
============================================================================================================
For the Period from
January 6, 1994
(start of business) to
STATEMENT OF CHANGES IN NET ASSETS December 31, 1994
- ------------------------------------------------------------------------------------------------------------
<S> <C>
INCREASE (DECREASE) IN NET ASSETS:
From operations --
Net investment income........................................ $ 14,658
Net realized loss on investment transactions................. (5,872)
Change in unrealized depreciation of investments............. (18,244)
-----------
Decrease in net assets from operations..................... $ (9,458)
Distributions to shareholders from net investment income (Note 2) (14,658)
Net increase from fund share transactions (Note 4)............. 475,604
-----------
Net increase in net assets................................. $ 451,488
NET ASSETS:
At beginning of period......................................... --
-----------
At end of period............................................... $ 451,488
===========
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT NEAR TERM BOND PORTFOLIO
============================================================================================================
For the Period from
January 6, 1994
(start of business) to
FINANCIAL HIGHLIGHTS December 31, 1994
- ------------------------------------------------------------------------------------------------------------
<S> <C>
Net asset value, beginning of period.............................. $ 10.000
------------
Income from Investment Operations:
Net investment income[1]....................................... $ 0.324
Net realized and unrealized loss on investments................ (0.670)
------------
Net loss from investment operations.......................... $ (0.346)
------------
Less Distributions to Shareholders:
From net investment income..................................... $ (0.324)
------------
Net asset value, end of period.................................... $ 9.330
============
Total Return...................................................... (3.2%)[3]
Ratios/Supplemental Data:
Net assets, end of year (000 omitted).......................... $451
Ratio of net expenses to average net assets.................... 0.90%[2]
Ratio of net investment income to average net assets........... 3.43%[2]
Portfolio Turnover Rate........................................ 52%
<FN>
[1] During the period ended December 31, 1994, the operating expenses of the
Fund were reduced by a reduction of the investment adviser fee, the
administrator fee, and the allocation of expenses to the Adviser. Had such
actions not been undertaken, the net investment income per share and the
ratios would have been as follows:
Net investment loss per share................................. $ (0.095)
===============
Ratios (As a percentage of average net assets):
Expenses..................................................... 5.34%[2]
===============
Net investment loss............................................ (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>
</TABLE>
- -------------------------------------------------------------------------------
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT TOTAL RETURN BOND PORTFOLIO (WTRBP)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1994
==============================================================================================================
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>
$ 100,000 U.S. Treasury Notes 6.375% 1/15/99 $ 94.937 $ 94,937 6.71% 7.86%
200,000 U.S. Treasury Notes 5.500% 4/15/00 89.953 179,906 6.11% 7.85%
100,000 U.S. Treasury Notes 7.500% 11/15/01 98.172 98,172 7.64% 7.85%
150,000 U.S. Treasury Notes 5.750% 8/15/03 86.906 130,359 6.62% 7.87%
----------
Total Investments (identified cost, $542,689)-- 96.7% $ 503,374 6.65% 7.86%
===== =====
Other Assets, less Liabilities-- 3.3% 17,009
----------
Net Assets-- 100.0% $ 520,383
==========
Average Maturity -- 6.2 Years[1]
<FN>
[1] Unaudited.
</FN>
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT TOTAL RETURN BOND PORTFOLIO
============================================================================================================
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1994
- ------------------------------------------------------------------------------------------------------------
<S> <C>
ASSETS:
Investments --
Identified cost.................... $ 542,689
Unrealized depreciation............ (39,315)
----------
Total value (Note 1A)............ $ 503,374
Cash................................. 2,468
Interest receivable.................. 9,533
Deferred organizational costs (Note 1D) 6,891
Receivable from investment adviser... 5,230
----------
Total Assets....................... $ 527,496
----------
LIABILITIES:
Payable for fund shares redeemed..... $ 340
Trustee fee payable.................. 312
Custodian fee payable................ 4,335
Accrued expenses..................... 2,126
----------
Total Liabilities.................. $ 7,113
----------
NET ASSETS.............................. $ 520,383
==========
NET ASSETS CONSIST OF:
Paid-in Capital......................... $ 560,475
Accumulated net realized loss on investment
transactions......................... (777)
Unrealized depreciation of investments.. (39,315)
----------
Net assets applicable to outstanding shares $ 520,383
==========
SHARES OF BENEFICIAL INTEREST
OUTSTANDING.......................... 58,846
==========
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST............... $ 8.84
==========
</TABLE>
<TABLE>
============================================================================================================
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1994
- ------------------------------------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME:
Income --
Interest............................. $ 22,332
----------
Expenses --
Investment adviser fee (Note 3)...... $ 1,861
Administrator fee (Note 3)........... 207
Amortization of organization expense
(Note 1D).......................... 1,859
Compensation of trustees not affiliated with
the investment adviser or administrator 1,742
Custodian fee........................ 16,030
Transfer and dividend disbursing agent fees 625
Registration costs................... 285
Legal................................ 312
Audit services....................... 5,000
Miscellaneous........................ 1,159
----------
Total expenses................... $ 29,080
----------
Deduct --
Reduction of investment adviser fee.. $ 1,861
Reduction of administrator fee....... 207
Allocation of expense to the adviser. 23,275
----------
Total deducted................... $ 25,343
----------
Net expenses..................... $ 3,737
----------
Net investment income.......... $ 18,595
----------
REALIZED AND UNREALIZED LOSS ON
INVESTMENTS:
Net realized loss on investment transactions $ (777)
Change in unrealized depreciation of investments (38,541)
----------
Net realized and unrealized loss on investments$ (39,318)
----------
Net decrease in net assets from operations $ (20,723)
==========
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT TOTAL RETURN BOND PORTFOLIO
============================================================================================================
For the Period from
Year December 7, 1993
Ended (start of business) to
STATEMENT OF CHANGES IN NET ASSETS December 31, 1994 December 31, 1993
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From operations --
Net investment income........................................ $ 18,595 $ 233
Net realized loss on investment transactions................. (777) --
Change in unrealized depreciation of investments............. (38,541) (774)
----------- -----------
Decrease in net assets from operations..................... $ (20,723) $ (541)
Distributions to shareholders from net investment income (Note 2) (18,595) (233)
Net increase from fund share transactions (Note 4)............. 392,475 168,000
----------- -----------
Net increase in net assets................................. $ 353,157 $ 167,226
NET ASSETS:
At beginning of year........................................... 167,226 --
----------- -----------
At end of year................................................. $ 520,383 $ 167,226
=========== ===========
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT TOTAL RETURN BOND PORTFOLIO
============================================================================================================
For the Period from
Year December 7, 1993
Ended (start of business) to
FINANCIAL HIGHLIGHTS December 31, 1994 December 31, 1993[2]
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value, beginning of year................................ $ 9.930 $ 10.000
------------ -------------
Income from Investment Operations:
Net investment income1......................................... $ 0.398 $ 0.019
Net realized and unrealized loss on investments................ (1.090) (0.070)
------------ -------------
Total income from investment operations...................... $ (0.692) $ (0.051)
------------ -------------
Less Distributions to Shareholders:
From net investment income..................................... $ (0.398) $ (0.019)
------------ -------------
Net asset value, end of year...................................... $ 8.840 $ 9.930
============ =============
Total Return[3]................................................... (7.1%) (0.5%)
Ratios/Supplemental Data:
Net assets, end of year (000 omitted).......................... $ 520 $ 167
Ratio of net expenses to average net assets................... 0.90% 0.70%[4]
Ratio of net investment income to average net assets........... 4.49% 2.50%[4]
Portfolio Turnover Rate........................................ 23% 0%
<FN>
[1] During the years ended December 31, 1994, the operating expenses of the
Fund were reduced either by a reduction of the investment adviser fee, the
administrator fee, and the allocation of expenses to the Adviser, or a
combination of these. Had such actions not been undertaken, the net
investment income per share and the ratios would have been as follows:
Net investment loss per share.................................. $ (0.111)
============
Ratios (As a percentage of average net assets):
Expenses..................................................... 7.00%
============
Net investment loss.......................................... (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>
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statments
<PAGE>
<TABLE>
WRIGHT SELECTED BLUE CHIP PORTFOLIO (WSBCP)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1994
================================================================================
Shares Value
- --------------------------------------------------------------------------------
<S> <C> <C>
EQUITY INTERESTS -- 98.2%
APPAREL -- 5.5%
Fruit of the Loom, Inc*...... 600 $ 16,200
Justin Industries............ 1,200 14,250
Nike Inc..................... 200 14,925
Reebok International Ltd..... 500 19,750
VF Corp...................... 300 14,588
-------------
$ 79,713
-------------
AUTOMOTIVE -- 1.7%
Modine Manufacturing Co...... 500 $ 14,375
Myers Industries............. 600 10,500
-------------
$ 24,875
-------------
BEVERAGES -- 1.0%
Brown-Forman Corp............ 500 $ 15,250
-------------
CHEMICALS -- 2.1%
Clorox Company............... 300 $ 17,663
Sherwin-Williams Company..... 400 13,250
-------------
$ 30,913
-------------
CONSTRUCTION -- 1.1%
Clayton Homes*............... 1,000 $ 15,750
-------------
DIVERSIFIED -- 5.5%
General Electric Company..... 400 $ 20,400
National Service Industries.. 500 12,813
Rockwell International Corp.. 400 14,300
Standex International Corp... 600 18,825
Teleflex Inc................. 400 14,200
-------------
$ 80,538
-------------
</TABLE>
<TABLE>
Shares Value
- --------------------------------------------------------------------------------
<S> <C> <C>
DRUGS, COSMETICS & HEALTH CARE-- 7.4%
Alberto Culver Company....... 700 $ 17,150
Becton Dickinson & Co........ 400 19,200
Bristol-Myers Squibb Co...... 300 17,363
Johnson & Johnson............ 200 10,950
Medex Inc.................... 1,100 14,850
Merck & Company.............. 400 15,250
Upjohn Company (The)......... 400 12,300
-------------
$ 107,063
-------------
ELECTRICAL -- 1.6%
Emerson Electric Co.......... 200 $ 12,500
Juno Lighting, Inc........... 600 10,650
-------------
$ 23,150
-------------
ELECTRONICS -- 7.1%
Compaq Computer Corp*........ 300 $ 11,850
EG&G, Inc.................... 800 11,300
E-Systems Inc................ 400 16,650
Hewlett-Packard Co........... 200 19,975
Intel Corporation............ 200 12,775
Methode Electronics.......... 700 11,900
Raytheon Company............. 300 19,163
-------------
$ 103,613
-------------
FINANCIAL -- 13.8%
AFLAC Incorporated........... 400 $ 12,800
Amer International Group..... 200 19,600
Amsouth Bancorp.............. 500 12,875
Bancorp Hawaii, Inc.......... 500 12,688
Commerce Bancshares.......... 420 11,340
Edwards (A.G.) Inc........... 800 14,400
Fifth Third Bancorp.......... 200 9,600
First Colony Corp............ 700 15,663
First Hawaiian, Inc*......... 500 11,875
First Virginia Banks, Inc.... 400 12,800
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT SELECTED BLUE CHIP PORTFOLIO (WSBCP)
PORTFOLIO OF INVESTMENTS - continued
DECEMBER 31, 1994
================================================================================
Shares Value
- --------------------------------------------------------------------------------
<S> <C> <C>
FINANCIAL - continued
Keycorp...................... 400 $ 10,000
Raymond James Financial...... 1,000 14,000
Southern National Corp....... 700 13,387
Southtrust Corp.............. 900 16,200
West One Bancorp............. 500 13,250
-------------
$ 200,478
-------------
FOOD -- 5.6%
Archer Daniels Midland Co.... 900 $ 18,563
Dean Foods Company........... 400 11,600
Hormel (George A.) & Co...... 800 19,800
Pioneer Hi-Bred Int'l........ 500 17,250
Universal Foods Corp......... 500 13,750
-------------
$ 80,963
-------------
MACHINERY & EQUIPMENT -- 2.2%
Briggs & Stratton Corp....... 600 $ 19,650
Pitney Bowes, Inc............ 400 12,700
-------------
$ 32,350
-------------
METAL PRODUCTS MANUFACTURERS-- 4.4%
CLARCOR...................... 800 $ 17,000
Crown Cork & Seal Company*... 400 15,100
Kaydon Corporation........... 800 19,200
Watts Industries Inc......... 600 12,675
-------------
$ 63,975
-------------
OIL, GAS, COAL & RELATED SERVICES-- 0.8%
Exxon Corporation............ 200 $ 12,150
-------------
PAPER -- 1.1%
Kimberly-Clark Corporation... 300 $ 15,150
-------------
</TABLE>
<TABLE>
Shares Value
- --------------------------------------------------------------------------------
<S> <C> <C>
PRINTING & PUBLISHING -- 7.1%
Banta Corporation............ 400 $ 12,100
Ennis Business Forms......... 1,100 13,750
Gannett Company, Inc......... 300 15,975
Harland (John H.) Co......... 700 14,000
Lee Enterprises.............. 500 17,250
Reynolds & Reynolds.......... 600 15,000
Wallace Computer Services.... 500 14,500
-------------
$ 102,575
-------------
RECREATION -- 2.9%
Carnival Corporation......... 600 $ 12,750
International Dairy Queen*... 800 13,600
Luby's Cafeterias Inc........ 700 15,663
-------------
$ 42,013
-------------
RETAILERS -- 7.9%
Casey's General Stores Inc... 1,400 $ 21,000
Dress Barn (The)*............ 1,400 15,050
Giant Food Inc............... 600 13,050
Hannaford Brothers........... 600 15,225
Lands' End, Inc.............. 700 9,625
May Department Stores........ 500 16,875
Melville Corporation......... 400 12,350
Ross Stores, Inc............. 1,000 11,250
-------------
$ 114,425
-------------
TRANSPORTATION -- 3.4%
Air Express International.... 1,050 $ 21,000
Arnold Industries............ 700 14,525
Intertrans Corporation....... 1,100 14,300
-------------
$ 49,825
-------------
UTILITIES - COMMUNICATION-- 2.2%
Ameritech Corporation........ 400 $ 16,150
Lincoln Telecommunications... 900 15,300
-------------
$ 31,450
-------------
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT SELECTED BLUE CHIP PORTFOLIO (WSBCP)
PORTFOLIO OF INVESTMENTS - continued
DECEMBER 31, 1994
================================================================================
Shares Value
- --------------------------------------------------------------------------------
<S> <C> <C>
UTILITIES-ELECTRIC POWER-- 5.3%
Central & SouthWest.......... 600 $ 13,575
DQE Inc...................... 600 17,775
Duke Power Company........... 400 15,250
Nipsco Industries............ 500 14,875
Wisconsin Energy............. 600 15,525
-------------
$ 77,000
-------------
UTILITIES - NATURAL GAS -- 0.9%
Southwestern Energy Corp..... 900 $ 13,388
-------------
MISCELLANEOUS -- 7.6%
Dionex Corporation*.......... 400 $ 15,100
Genuine Parts Company........ 400 14,400
Handleman Company............ 1,400 15,925
Marshall Industries*......... 800 21,400
Medicine Shoppe Int'l........ 500 13,375
Pioneer Standard Electronics. 900 14,170
Stanhome Inc................. 500 15,813
-------------
$ 110,183
-------------
TOTAL EQUITY INTERESTS -- 98.2%
(identified cost, $1,452,694) $ 1,426,790
OTHER ASSETS
LESS LIABILITIES-- 1.8% 25,675
-------------
NET ASSETS-- 100.0% $ 1,452,465
=============
</TABLE>
* Non-income-producing security.
- --------------------------------------------------------------------------------
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT SELECTED BLUE CHIP PORTFOLIO
================================================================================
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1994
- --------------------------------------------------------------------------------
<S> <C>
ASSETS:
Investments --
Identified cost.................... $1,452,694
Unrealized depreciation............ (25,904)
-----------
Total value (Note 1A)............ $1,426,790
Cash................................. 18,789
Dividends receivable................. 4,115
Deferred organizational costs (Note 1D) 7,035
Receivable from investment adviser... 3,220
-----------
Total Assets....................... $1,459,949
-----------
LIABILITIES:
Payable for fund shares redeemed..... $ 330
Trustee fee payable.................. 312
Custodian fee payable................ 4,312
Accrued expenses..................... 2,530
-----------
Total Liabilities.................. $ 7,484
-----------
NET ASSETS.............................. $1,452,465
===========
NET ASSETS CONSIST OF:
Paid-in Capital......................... $1,498,107
Accumulated net realized loss on investment
transactions......................... (24,751)
Undistributed net investment income..... 5,013
Unrealized depreciation of investments.. (25,904)
-----------
Net assets applicable to outstanding shares $1,452,465
===========
SHARES OF BENEFICIAL INTEREST
OUTSTANDING.......................... 155,887
===========
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST............... $ 9.32
===========
</TABLE>
<TABLE>
================================================================================
STATEMENT OF OPERATIONS
For the Period from January 6, 1994 (Start of Business)
to December 31, 1994
- --------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME:
Income --
Dividend............................. $ 19,514
-----------
Expenses --
Investment adviser fee (Note 3)...... $ 5,488
Administrator fee (Note 3) 422
Amortization of organization expense
(Note 1D).......................... 1,715
Compensation of trustees not affiliated with
the investment adviser or administrator 1,742
Custodian fee........................ 16,415
Legal................................ 312
Transfer and dividend disbursing agent fees 625
Registration costs................... 565
Miscellaneous........................ 574
-----------
Total expenses................... $ 27,858
-----------
Deduct --
Reduction of investment adviser fee.. $ 5,488
Reduction of administrator fee....... 422
Allocation of expense to the adviser. 12,240
-----------
Total deducted................... $ 18,150
-----------
Net expenses..................... $ 9,708
-----------
Net investment income.......... $ 9,806
-----------
REALIZED AND UNREALIZED LOSS ON
INVESTMENTS:
Net realized loss on investment transactions $ (24,751)
Change in unrealized depreciation of investments (25,904)
-----------
Net realized and unrealized loss on investments $ (50,655)
-----------
Net decrease in net assets from operations $ (40,849)
===========
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT SELECTED BLUE CHIP PORTFOLIO
============================================================================================================
For the Period from
January 6, 1994
(start of business) to
STATEMENT OF CHANGES IN NET ASSETS December 31, 1994
- ------------------------------------------------------------------------------------------------------------
<S> <C>
INCREASE (DECREASE) IN NET ASSETS:
From operations --
Net investment income........................................ $ 9,806
Net realized loss on investment transactions................. (24,751)
Change in unrealized depreciation of investments............. (25,904)
-----------
Decrease in net assets from operations..................... $ (40,849)
Distributions to shareholders from net investment income....... (9,294)
Undistributed net investment income included in price of shares
sold and redeemed............................................ 4,501
Net increase from fund share transactions (exclusive of amounts
allocated to net investment income) (Note 4)................. 1,498,107
-----------
Net increase in net assets................................. $1,452,465
NET ASSETS:
At beginning of period......................................... --
-----------
At end of period............................................... $1,452,465
===========
UNDISTRIBUTED NET INVESTMENT INCOME
INCLUDED IN NET ASSETS......................................... $ 5,013
===========
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT SELECTED BLUE CHIP PORTFOLIO
============================================================================================================
For the Period from
January 6, 1994
(start of business) to
FINANCIAL HIGHLIGHTS December 31, 1994
- ------------------------------------------------------------------------------------------------------------
<S> <C>
Net asset value, beginning of period.............................. $ 10.000
Income from Investment Operations:
Net investment income[1]....................................... $ 0.092
Net realized and unrealized loss on investments................ (0.712)
------------
Total income (loss) from investment operations............... $ (0.620)
Less Distributions to Shareholders:
From net investment income..................................... (0.060)
------------
Net asset value, end of period.................................... $ 9.320
============
Total Return[3]................................................... (6.2%)
Ratios/Supplemental Data:
Net assets, end of year (000 omitted).......................... $1,452
Ratio of net expenses to average net assets.................... 1.15%[2]
Ratio of net investment income to average net assets........... 1.16%[2]
Portfolio Turnover Rate........................................ 74%
<FN>
[1] During the period ended December 31, 1994, the operating expenses of the
Fund were reduced either by a reduction of the investment adviser fee, the
administrator fee, and the allocation of expenses to the Adviser, or a
combination of these. Had such actions not been undertaken, the net
investment income per share and the ratios would have been as follows:
Net investment loss per share.................................... $ (0.078)
===============
Ratios (As a percentage of average net assets):
Expenses....................................................... 3.30%[2]
===============
Net investment loss............................................ (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>
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT INTERNATIONAL BLUE CHIP PORTFOLIO (WIBCP)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1994
================================================================================
Shares Value
- --------------------------------------------------------------------------------
<S> <C> <C>
EQUITY INTERESTS -- 95.2%
AUSTRALIA -- 7.9%
Broken Hill Proprietary (ADR) 500 $ 30,812
Email Ltd. (ADR)*............ 3,600 20,384
F.H. Faulding (ADR).......... 1,200 26,807
Pacific Dunlop Ltd. (ADR).... 1,800 19,350
-------------
$ 97,353
-------------
CANADA -- 3.0%
Corel Systems Corp*.......... 2,700 $ 37,294
-------------
DENMARK-- 4.4%
ISS Int'l. Service Systems*.. 1,000 $ 27,145
Jens Villadsens Fabriker*.... 100 26,322
-------------
$ 53,467
-------------
FRANCE -- 7.9%
Alcatel Alstrom
Cie Generale d'Electric (ADR) 1,300 $ 22,100
Groupe Danome (ADR)*......... 700 19,649
L'Oreal (ADR)................ 660 26,935
LVMH Moet-Hennessy
Louis Vuitton.............. 900 28,350
-------------
$ 97,034
-------------
GERMANY -- 2.4%
Bayerische Motoren Werke*.... 60 $ 29,839
-------------
HONG KONG -- 9.0%
Hang Lung Devel. Co. (ADR)... 2,700 $ 19,193
Hong Kong Aircraft Engineering* 5,600 18,672
Hong Kong & China Gas Co. (ADR) 16,032 25,900
Hong Kong Electric Hold. (ADR) 10,000 27,335
Swire Pacific Limited (ADR).. 3,100 19,312
-------------
$ 110,412
-------------
</TABLE>
<TABLE>
Shares Value
- --------------------------------------------------------------------------------
<S> <C> <C>
IRELAND -- 2.6%
Greencore PLC*............... 5,000 $ 31,722
-------------
ITALY -- 1.8%
Sirti SpA*................... 3,500 $ 22,632
-------------
JAPAN -- 7.5%
Ito-Yokado Co., Ltd.......... 100 $ 21,400
Komatsu Seiren Co*........... 2,000 27,669
Nintendo Corp. Ltd. (ADR)*... 2,800 18,768
Seven Eleven Japan........... 300 24,085
-------------
$ 91,922
-------------
MALAYSIA -- 7.0%
Amalgamated Industrial Steel* 20,500 $ 31,146
Genting Berhad (ADR)......... 3,300 28,301
Perlis Plantations Berhad (ADR) 8,000 26,316
-------------
$ 85,763
-------------
MEXICO -- 4.6%
Cifra SA..................... 9,400 $ 19,277
Kimberly Clark de Mexico..... 700 16,544
Telefonos de Mexico.......... 500 20,500
-------------
$ 56,321
-------------
NETHERLANDS --10.4%
Elsevier (ADR)............... 1,250 $ 25,781
Koninklijke Ahold (ADR)*..... 800 24,500
NV Verenigd Bezit VNU*....... 250 25,968
Unilever NV.................. 200 23,300
Wolters Kluwer (ADR)*........ 380 28,117
-------------
$ 127,666
-------------
SINGAPORE -- 1.5%
Singapore Press Holdings*.... 1,000 $ 18,176
-------------
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT INTERNATIONAL BLUE CHIP PORTFOLIO (WIBCP)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1994
================================================================================
Shares Value
- --------------------------------------------------------------------------------
<S> <C> <C>
SPAIN -- 1.7%
Empresa Nacional de Electricidad
(ADR)...................... 500 $ 20,250
-------------
SWEDEN -- 4.9%
Astra AB..................... 1,260 $ 32,144
H & M Hennes & Mauritz AB*... 550 28,211
-------------
$ 60,355
-------------
SWITZERLAND -- 4.8%
Nestles (ADR)................ 700 $ 33,351
Sandoz (ADR)................. 1,000 26,057
-------------
$ 59,408
-------------
UNITED KINGDOM -- 13.8%
Cable & Wireless (ADR)....... 1,030 $ 18,025
Christian Salvesen (ADR)*.... 1,130 24,043
Grand Metropolitan........... 1,000 25,000
Halma*....................... 7,400 24,691
Marks & Spencer (ADR)........ 700 26,152
Tesco (ADR).................. 6,700 26,101
Wolseley*.................... 2,100 25,855
-------------
$ 169,867
-------------
</TABLE>
<TABLE>
Shares Value
- --------------------------------------------------------------------------------
<S> <C> <C>
TOTAL EQUITY INTERESTS -- 95.2%
(identified cost, $1,242,232) $ 1,169,481
OTHER ASSETS
LESS LIABILITIES-- 4.8% 59,465
-------------
NET ASSETS-- 100.0% $ 1,228,946
=============
</TABLE>
* Non-income-producing security.
ADR - American Depositary Receipt
- --------------------------------------------------------------------------------
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT INTERNATIONAL BLUE CHIP PORTFOLIO (WIBCP)
================================================================================
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1994
- --------------------------------------------------------------------------------
<S> <C>
ASSETS:
Investments --
Identified cost.................... $1,242,232
Unrealized depreciation............ (72,751)
-----------
Total value (Note 1A)............ $1,169,481
Cash................................. 54,028
Dividends receivable................. 2,449
Deferred organizational costs (Note 1D) 7,031
Receivable from investment adviser... 4,935
Receivable for foreign taxes withheld 95
-----------
Total assets....................... $1,238,019
-----------
LIABILITIES:
Payable for fund shares redeemed..... $ 330
Trustees fee payable................. 312
Custodian fee payable................ 5,998
Accrued expenses..................... 2,433
-----------
Total liabilities.................. $ 9,073
-----------
NET ASSETS.............................. $1,228,946
===========
NET ASSETS CONSIST OF:
Paid-in Capital......................... $1,298,164
Undistributed net investment income..... 3,533
Unrealized depreciation of investments.. (72,751)
-----------
Net assets applicable to outstanding shares $1,228,946
===========
SHARES OF BENEFICIAL INTEREST
OUTSTANDING.......................... 134,527
===========
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST............... $ 9.14
===========
</TABLE>
<TABLE>
================================================================================
STATEMENT OF OPERATIONS
For the Period from January 6, 1994 (Start of Business)
to December 31, 1994
- --------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME:
Income --
Dividend............................. $ 14,581
Less: Foreign taxes.................. (489)
-----------
Gross income....................... $ 14,092
-----------
Expenses --
Investment adviser fee (Note 3)...... $ 5,535
Administrator fee (Note 3) 346
Amortization of organization expense
(Note 1D).......................... 1,720
Compensation of trustees not affiliated with
the investment adviser or administrator 1,742
Custodian fee........................ 21,308
Legal................................ 484
Transfer and dividend disbursing agent fees 625
Registration costs................... 467
Miscellaneous........................ 382
-----------
Total expenses................... $ 32,609
-----------
Deduct --
Reduction of investment adviser fee.. $ 5,535
Reduction of administrator fee....... 346
Allocation of expense to the adviser. 13,935
-----------
Total deducted................... $ 19,816
-----------
Net expenses..................... $ 12,793
-----------
Net investment income.......... $ 1,299
-----------
REALIZED AND UNREALIZED LOSS ON
INVESTMENTS:
Change in unrealized depreciation of investments $ (72,751)
-----------
Net decrease in net assets from operations $ (71,452)
===========
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT INTERNATIONAL BLUE CHIP PORTFOLIO
============================================================================================================
For the Period from
January 6, 1994
(start of business) to
STATEMENT OF CHANGES IN NET ASSETS December 31, 1994
- ------------------------------------------------------------------------------------------------------------
<S> <C>
INCREASE (DECREASE) IN NET ASSETS:
From operations --
Net investment income........................................ $ 1,299
Change in unrealized depreciation of investments............. (72,751)
-----------
Decrease in net assets from operations..................... $ (71,452)
Undistributed net investment income included in price of shares
sold and redeemed............................................ 2,907
Distributions to shareholders from net investment income....... (673)
Net increase from fund share transactions (exclusive of amounts
allocated to net investment income) (Note 4)................. 1,298,164
-----------
Net increase in net assets................................. $1,228,946
NET ASSETS:
At beginning of period......................................... --
-----------
At end of period............................................... $1,228,946
===========
UNDISTRIBUTED NET INVESTMENT INCOME
INCLUDED IN NET ASSETS......................................... $ 3,533
===========
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT INTERNATIONAL BLUE CHIP PORTFOLIO
============================================================================================================
For the Period from
January 6, 1994
(start of business) to
FINANCIAL HIGHLIGHTS December 31, 1994
- ------------------------------------------------------------------------------------------------------------
<S> <C>
Net asset value, beginning of period.............................. $ 10.000
------------
Income from Investment Operations:
Net investment income[1]....................................... $ 0.031
Net realized and unrealized loss on investments................ (0.886)
------------
Total income from investment operations...................... $ (0.855)
Less distributions to shareholders:
From net investment income................................... (0.005)
------------
Net asset value, end of period.................................... $ 9.140
============
Total Return...................................................... (8.10%)[3]
Ratios/Supplemental Data:
Net assets, end of period (000 omitted)........................ $1,229
Ratio of net expenses to average net assets.................... 1.80%[2]
Ratio of net investment income to average net assets........... 0.19%[2]
Portfolio Turnover Rate........................................ 0%
<FN>
[1] During the period ended December 31, 1994, the operating expenses of the
Fund were reduced by a reduction of the investment adviser fee, the
administrator fee, and the allocation of expenses to the Adviser. Had such
actions not been undertaken, the net investment income per share and the
ratios would have been as follows:
Net investment loss per share.................................... $ (0.434)
===============
Ratios (As a percentage of average net assets):
Expenses....................................................... 4.65%[2]
===============
Net investment loss............................................ (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>
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements
<PAGE>
WRIGHT MANAGED BLUE CHIP SERIES TRUST
NOTES TO FINANCIAL STATEMENTS
================================================================================
(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>
WRIGHT MANAGED BLUE CHIP SERIES TRUST
NOTES TO FINANCIAL STATEMENTS - continued
================================================================================
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 Fund 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>
WRIGHT MANAGED BLUE CHIP SERIES TRUST
NOTES TO FINANCIAL STATEMENTS - continued
================================================================================
(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 from
commencement of operations to December 31, 1994, the effective annual rate for
advisory and administration charges for each Portfolio was as follows:
<TABLE>
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>
WNTBP WTRBP WSBCP WIBCP
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Reduction of Investment Adviser fees $ 1,921 $ 1,861 $ 5,488 $ 5,535
Allocation of expense to the Investment Adviser 16,824 23,275 12,240 13,935
Reduction of Administrator fees 214 207 422 346
- ------------------------------------------------------------------------------------------------------------
</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>
WRIGHT MANAGED BLUE CHIP SERIES TRUST
NOTES TO FINANCIAL STATEMENTS - continued
================================================================================
(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>
Period from Dec. 7, 1993
Year Ended (start of business) to
December 31, 1994 December 31, 1993
--------------------------------------------------------------
Shares Amount Shares Amount
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
WRIGHT NEAR TERM BOND PORTFOLIO[1]--
Sales.................................. 97,510 $ 945,206
Issued to shareholders in payment
of distributions declared............ 1,542 14,658
Redemptions............................ (50,644) (484,260)
---------- --------------
Net increase....................... 48,408 $ 475,604
========== ==============
WRIGHT TOTAL RETURN BOND PORTFOLIO --
Sales.................................. 81,960 $ 762,268 16,835 $ 168,000
Issued to shareholders in payment
of distributions declared............ 2,069 18,830 -- --
Redemptions............................ (42,018) (388,623) -- --
---------- -------------- --------- ------------
Net increase....................... 42,011 $ 392,475 16,835 $ 168,000
========== ============== ========= ============
WRIGHT SELECTED BLUE CHIP PORTFOLIO[1]--
Sales.................................. 160,250 $ 1,538,743
Issued to shareholders in payment
of distributions declared............ 1,018 9,263
Redemptions............................ (5,381) (49,899)
---------- --------------
Net increase....................... 155,887 $1,498,107
========== ==============
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
WRIGHT MANAGED BLUE CHIP SERIES TRUST
NOTES TO FINANCIAL STATEMENTS - continued
=======================================================================================================================
Year Ended
December 31, 1994
------------------------
Shares Amount
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
WRIGHT INTERNATIONAL BLUE CHIP PORTFOLIO[1] --
Sales.................................. 143,858 $1,388,264
Issued to shareholders in payment
of distributions declared............ 74 671
Redemptions............................ (9,405) (90,772)
-------- -----------
Net increase....................... 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 year ended December 31, 1994, were as follows:
<TABLE>
Year Ended December 31, 1994
--------------------------------------------------------------------------------------
WRIGHT WRIGHT WRIGHT WRIGHT
NEAR TERM TOTAL RETURN SELECTED INTERNATIONAL
BOND PORTOFLIO BOND PORTFOLIO BLUE CHIP PORTFOLIO BLUE CHIP PORTFOLIO
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Purchases --
Non-U.S. Gov't Obligations.... $ -- $ -- $ 2,061,933 $ 1,242,232
============= ============= ============== ==============
U.S. Gov't Obligations........ $ 598,158 $ 462,894 $ -- $ --
============= ============= ============== ==============
Sales --
Non-U.S. Gov't Obligations.... $ -- $ -- $ 584,488 $ --
============= ============= ============== ==============
U.S. Gov't Obligations........ $ 153,990 $ 80,230 $ -- $ --
============= ============= ============== ==============
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
WRIGHT MANAGED BLUE CHIP SERIES TRUST
NOTES TO FINANCIAL STATEMENTS - continued
================================================================================
(6) FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES
The cost and unrealized appreciation (depreciation) in value of the
investments owned at December 31, 1994, as computed on a federal income tax
basis, are as follows:
<TABLE>
WRIGHT WRIGHT WRIGHT WRIGHT
NEAR TERM TOTAL RETURN SELECTED INTERNATIONAL
BOND PORTFOLIO BOND PORTFOLIO BLUE CHIP PORTFOLIO BLUE CHIP PORTFOLIO
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Aggregate Cost................... $ 438,296 $ 542,689 $ 1,452,694 $ 1,242,232
============= ============= ============= ==============
Gross unrealized appreciation.... $ -- $ -- $ 51,535 $ 90,517
Gross unrealized depreciation.... (18,244) (39,315) (77,439) (163,268)
------------- ------------- ------------- -------------
Net unrealized depreciation... $ (18,244) $ (39,315) $ (25,904) $ (72,751)
============= ============= ============= =============
- -----------------------------------------------------------------------------------------------------------------------
</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 $5,000,000 committed facility and
a $15,000,000 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 facility fee computed at a rate of 1/4 of 1% on the unused
portion of the $5,000,000 facility. The Portfolios did not have any borrowings
under the line of credit during the year ended December 31, 1994.
- --------------------------------------------------------------------------------
<PAGE>
INDEPENDENT AUDITORS' REPORT
================================================================================
To the Trustees and Shareholders of
The Wright Managed Blue Chip Series Trust:
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of The Wright Managed Blue Chip Series Trust (the
Trust) (comprising, respectively, of the Wright Near Term Bond Portfolio, Wright
Total Return Bond Portfolio, Wright Selected Blue Chip Portfolio and Wright
International Blue Chip Portfolio series) as of December 31, 1994 and the
related statements of operations for the period then ended and changes in net
assets and the financial highlights for the periods ended December 31, 1994 and
1993. 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, 1994, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of the above respective
Portfolios constituting The Wright Managed Blue Chip Series Trust as of December
31, 1994, the results of its operations, the changes in its net assets, and its
financial highlights for the respective stated periods in conformity with
generally accepted accounting principles.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
February 3, 1995
- --------------------------------------------------------------------------------
<PAGE>
WRIGHT MANAGED
BLUE CHIP
SERIES TRUST
ANNUAL REPORT
OFFICERS AND TRUSTEES OF THE FUNDS
Peter M. Donovan, President and Trustee
H. Day Brigham, Jr., Vice President , Secretary and Trustee
A. M. Moody III, Vice President and Trustee
Judith R. Corchard, Vice President
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
- --------------------------------------------------------------------------------
Description of the art work on back cover of the report
Solid blue box with the name of the Trust in the upper left hand corner of page.
- --------------------------------------------------------------------------------
