- ------------------------------------------------------------------------------
Description of art work on front cover of report
Solid blue box with name of Trust in upper left hand corner of page.
- ------------------------------------------------------------------------------
SEMI-ANNUAL
REPORT
June 30, 1996
<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 1996
Dear Shareholders:
The U.S. stock market added to 1995's bull market run through
the first half of 1996, although some loss of momentum was apparent
near midyear. The Dow Jones Industrial Average inched ahead by 1% in
the second quarter, a small fraction of its 9% first-quarter advance.
Over-the-counter stocks actually performed slightly better in the
second quarter than in the first before giving up some of these gains
in late June and early July.
Interest rates rose during the first half of 1996, the result
of stronger- than-expected business conditions, suspicions that
higher inflation was looming, and expectations that the Federal
Reserve would tighten monetary policy during the summer. Despite the
economy's upshift to greater growth during the quarter, however,
inflation indicators have for the most part remained favorable, which
was no doubt a factor in the Fed's decision to hold the line on
interest rates at its Federal Open Market Committee meeting in July.
In the face of renewed weakness in the bond market, the
long-awaited, perhaps long-overdue correction in stock prices
appeared to have arrived during the first weeks of July. In the short
run, with some modest Fed tightening and somewhat higher bond yields
possible, the risk of interim stock market weakness this summer has
increased. Some further bond price weakness is also possible in the
short run, particularly if the Fed tightens. But with real long-term
yields topping 4%, a good buying opportunity in bonds may be
approaching. However volatile the markets become in the near term,
long-term economic and corporate fundamentals are generally
favorable: improved business productivity; vigorous competition and
controlled inflation; narrowing budget
<PAGE>
deficits and demographic
trends that favor savings and investment. On the whole, prospects for
moderate economic growth, modest inflation, increasing profits and,
later this year, the possibility of lower interest rates appear to be
quite reasonable. In such an environment, high-quality stocks and
bonds can be expected to produce better returns than Treasury bills
over the 1996-98 horizon.
As always, it should be understood that past performance does not
guarantee future results and that investment return and principal
value will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than their original cost. Investing
internationally entails additional risks, such as currency
fluctuations and potential political instability.
Sincerely,
Peter M. Donovan, President
<PAGE>
<TABLE>
<CAPTION>
WRIGHT NEAR TERM BOND PORTFOLIO (WNTBP)
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996 (UNAUDITED)
=========================================================================================================================
Face Coupon Maturity Market Current Yield To
Amount Description Rate Date Price Value Yield Maturity
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 75,000 U.S. Treasury Note 4.375% 11/15/96 $ 99.562 $ 74,696 4.39% 5.54%
25,000 U.S. Treasury Note 4.750% 2/15/97 99.375 24,852 4.78% 5.77%
55,000 U.S. Treasury Note 5.625% 8/31/97 99.516 54,828 5.65% 6.05%
40,000 Federal Nat'l. Mortgage Assoc 7.000% 8/11/99 100.312 40,225 6.98% 6.88%
50,000 Federal Farm Credit Banks 8.650% 10/1/99 105.766 53,039 8.18% 6.64%
50,000 Federal Home Loan Banks 7.780% 2/3/00 103.406 51,890 7.52% 6.69%
40,000 Student Loan Marketing Assoc. 7.500% 3/8/00 102.672 41,206 7.30% 6.67%
----------
Total Investments (identified cost, $337,055) -- 89.8% $340,736 6.35% 6.28%
====== ======
Other Assets, less Liabilities -- 10.2% 38,588
----------
Net Assets -- 100.0% $379,324
==========
Average Maturity -- 2.2 Years
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT NEAR TERM BOND PORTFOLIO
==============================================================================
STATEMENT OF ASSETS AND LIABILITIES
June 30,1996 (Unaudited)
- ------------------------------------------------------------------------------
ASSETS:
Investments --
Identified cost.................... $ 337,055
Unrealized appreciation............ 3,681
---------
Total value (Note 1A)............ $ 340,736
Cash................................. 18,836
Interest receivable.................. 6,612
Deferred organizational costs (Note 1E) 4,420
Receivable from Investment Adviser... 17,326
---------
Total Assets....................... $ 387,930
---------
LIABILITIES:
Distribution payable from income..... $ 1,507
Trustees fees payable................ 125
Custodian fee payable (Note 1D)...... 2,479
Accrued expenses..................... 4,495
---------
Total Liabilities.................. $ 8,606
---------
NET ASSETS.............................. $ 379,324
=========
NET ASSETS CONSIST OF:
Paid-in capital......................... $ 390,515
Accumulated net realized loss on investment
transactions......................... (14,872)
Unrealized appreciation of investments.. 3,681
---------
Net assets applicable to
outstanding shares................ $ 379,324
=========
SHARES OF BENEFICIAL INTEREST
OUTSTANDING.......................... 39,206
=========
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST............... $9.68
=========
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1996 (Unaudited)
- ----------------------------------------------------------------------------
INVESTMENT INCOME:
Income --
Interest............................. $ 9,781
---------
Expenses --
Investment Adviser fee (Note 3)...... $ 807
Administrator fee (Note 3............ 90
Compensation of Trustees not affiliated
with the Investment Adviser or
Administrator ..................... 813
Transfer and dividend disbursing
agent fees ........................ (725)
Custodian fee (Note 1D).............. 9,265
Amortization of organization expense
(Note 1E).......................... 862
Audit................................ 7,450
Legal................................ 130
Printing............................. 754
Registration costs................... 781
Miscellaneous........................ 364
---------
Total expenses................... $ 20,591
---------
Deduct --
Reduction of Custodian fee........... $ 764
Preliminary reduction of Investment
Adviser fee........................ 807
Preliminary reduction of
Administrator fee................. 90
Preliminary allocation of expense to the
Investment Adviser................. 17,326
---------
Total deducted................... $ 18,987
---------
Net expenses..................... $ 1,604
---------
Net investment income.......... $ 8,177
---------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain on investment
transactions........................... $ 163
Change in unrealized appreciation of
investments ........................... (7,428)
---------
Net realized and unrealized loss..... $ (7,265)
---------
Net increase in net assets from
operations........................ $ 912
=========
See notes to financial statements
<PAGE>
WRIGHT NEAR TERM BOND PORTFOLIO
===============================================================================
<TABLE>
<CAPTION>
Six Months Ended Year Ended
STATEMENTS OF CHANGES IN NET ASSETS June 30, 1996 December 31, 1995
- --------------------------------------------------------------------------------------------------------------------------------
(Unaudited)
INCREASE (DECREASE) IN NET ASSETS:
<S> <C> <C>
From operations --
Net investment income........................................ $ 8,177 $ 16,003
Net realized gain (loss) on investment transactions.......... 163 (9,163)
Change in unrealized appreciation of investments............. (7,428) 29,353
---------- ----------
Increase in net assets from operations..................... $ 912 $ 36,193
Distributions to shareholders from net investment income (Note 2) (8,177) (16,003)
Net increase (decrease) from fund share transactions (Note 4).. 60,025 (145,114)
---------- ----------
Net increase (decrease) in net assets...................... $ 52,760 $ (124,924)
NET ASSETS:
At beginning of period......................................... 326,564 451,488
---------- ----------
At end of period............................................... $ 379,324 $ 326,564
=========== ===========
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT NEAR TERM BOND PORTFOLIO
===============================================================================
<TABLE>
<CAPTION>
For the Period from
Six Months Year January 6, 1994
Ended Ended (start of business) to
FINANCIAL HIGHLIGHTS June 30, 1996 Dec. 31, 1995 December 31, 1994
- ----------------------------------------------------------------------------------------------------------------------------
(Unaudited)
<S> <C> <C> <C>
Net asset value, beginning of period............. $ 9.880 $ 9.330 $ 10.000
----------- ----------- ----------
Income from Investment Operations:
Net investment income(1)...................... $ 0.307 $ 0.448 $ 0.324
Net realized and unrealized gain (loss)....... (0.200) 0.550 (0.670)
----------- ----------- ----------
Total income (loss) from investment operations $ 0.107 $ 0.998 $ (0.346)
----------- ----------- ----------
Less Distributions to Shareholders:
From net investment income.................... $ (0.307) $ (0.448) $ (0.324)
----------- ----------- ----------
Net asset value, end of period................... $ 9.680 $ 9.880 $ 9.330
========== ========== ==========
Total Return(3).................................. (0.8%) 10.9% (3.2%)
Ratios/Supplemental Data:
Net assets, end of period (000 omitted) $379 $327 $451
Ratio of net expenses to average net assets... 1.32%(2) (4) 1.39%(4) 0.90% (2)
Ratio of net investment income to average net assets 4.55%(2) (4) 4.61%(4) 3.43% (2)
Portfolio Turnover Rate 132% 94% 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 the 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................ $ (0.406) $ (0.438) $ (0.095)
========== ========== ==========
Ratios (As a percentage of average net assets):
Expenses.................................... 11.48% (2) 10.51% 5.34% (2)
========== ========== ==========
Net investment loss......................... (6.02%)(2) (4.51%) (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.
(4)During the six month period ended June 30, 1996 and the year ended December
31, 1995, custodian fees were reduced by credits resulting from cash balances
the Trust maintained with the custodian (Note 1D). The computation of net
expenses to average daily net assets reported above is computed without
consideration of such credits, in accordance with reporting regulations in
effect beginning in 1995. If these credits were considered, the ratio of
expenses to average net assets would have been reduced to 0.90%.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT TOTAL RETURN BOND PORTFOLIO (WTRBP)
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996 (UNAUDITED)
===============================================================================
<TABLE>
<CAPTION>
Face Coupon Maturity Market Current Yield To
Amount Description Rate Date Price Value Yield Maturity
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 50,000 U.S. Treasury Note 4.375% 11/15/96 $ 99.562 $ 49,797 4.39% 5.54%
50,000 Federal Farm Credit Bank 5.270% 2/1/99 97.187 48,750 5.42% 6.47%
50,000 Federal Home Loan Banks 7.780% 2/3/00 103.406 51,891 7.52% 6.69%
50,000 Tennessee Valley Authority 6.125% 7/15/03 95.344 48,328 6.42% 6.97%
50,000 U.S. Treasury Note 5.750% 8/15/03 94.578 47,617 6.08% 6.72%
50,000 Federal Nat'l. Mortgage Assoc. 7.490% 3/2/05 102.453 51,649 7.31% 7.10%
150,000 U.S. Treasury Note 6.500% 8/15/05 97.781 147,843 6.65% 6.83%
125,000 U.S. Treasury Note 5.875% 11/15/05 93.453 117,754 6.29% 6.83%
20,000 AT&T Corp 7.750% 3/1/07 103.365 20,824 7.50% 7.29%
50,000 U.S. Treasury Bond 7.500% 11/15/16 103.828 52,530 7.22% 7.14%
----------
Total Investments (identified cost, $638,301) --94.5% $ 636,983 6.45% 6.75%
====== ======
Other Assets, less Liabilities -- 5.5% 36,732
----------
Net Assets -- 100.0% $ 673,715
===========
Average Maturity -- 8.2 Years
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT TOTAL RETURN BOND PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
June 30,1996 (Unaudited)
- ------------------------------------------------------------------------------
ASSETS:
Investments --
Identified cost.................... $ 638,301
Unrealized appreciation............ (1,318)
---------
Total value (Note 1A)............ $ 636,983
Cash................................. 14,139
Interest receivable.................. 12,313
Deferred organizational costs (Note 1E) 4,295
Receivable from Investment Adviser... 15,882
---------
Total Assets....................... $ 683,612
---------
LIABILITIES:
Distribution payable from income..... $ 2,824
Trustees fees payable................ 125
Custodian fee payable (Note 1D)...... 2,454
Accrued expenses..................... 4,494
---------
Total Liabilities.................. $ 9,897
---------
NET ASSETS.............................. $ 673,715
=========
NET ASSETS CONSIST OF:
Paid-in capital......................... $ 689,583
Accumulated net realized loss on investment
transactions......................... (14,550)
Unrealized appreciation of investments.. (1,318)
---------
Net assets applicable to outstanding
shares............................. 673,715
=========
SHARES OF BENEFICIAL INTEREST
OUTSTANDING.......................... 72,094
=========
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST............... $9.34
=========
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1996 (Unaudited)
- -----------------------------------------------------------------------------
INVESTMENT INCOME:
Income --
Interest............................. $ 16,396
---------
Expenses --
Investment Adviser fee (Note 3)...... $ 1,347
Administrator fee (Note 3)........... 150
Amortization of organization expense
(Note 1E).......................... 857
Compensation of Trustees not affiliated
with the Investment Adviser or
Administrator...................... 844
Custodian fee (Note 1D).............. 8,424
Audit services....................... 7,450
Legal................................ 130
Printing............................. 754
Registration costs................... 750
Miscellaneous........................ 365
---------
Total expenses................... $ 21,071
---------
Deduct --
Reduction of Custodian fee........... $ 997
Preliminary reduction of Investment
Adviser fee........................ 1,347
Preliminary reduction of Administrator
fee................................ 150
Preliminary allocation of expense to the
Investment Adviser................. 15,882
---------
Total deducted................... $ 18,376
---------
Net expenses..................... $ 2,695
---------
Net investment income.......... $ 13,701
---------
REALIZED AND UNREALIZED LOSS:
Net realized loss on investmen
transactions......................... $ (16)
Change in unrealized appreciation of
investments.......................... (27,403)
---------
Net realized and unrealized loss..... $ (27,419)
---------
Net decrease in net assets from
operations......................... $ (13,718)
=========
See notes to financial statements
<PAGE>
WRIGHT TOTAL RETURN BOND PORTFOLIO
===============================================================================
<TABLE>
<CAPTION>
Six Months Ended Year Ended
STATEMENTS OF CHANGES IN NET ASSETS June 30, 1996 December 31, 1995
- --------------------------------------------------------------------------------------------------------------------------------
(Unaudited)
INCREASE (DECREASE) IN NET ASSETS:
<S> <C> <C>
From operations --
Net investment income........................................ $ 13,701 $ 22,992
Net realized loss on investment transactions................. (16) (13,757)
Change in unrealized appreciation of investments............. (27,403) 65,400
---------- ----------
Increase (decrease) in net assets from operations.......... $ (13,718) $ 74,635
Distributions to shareholders from net investment income (Note 2) (13,701) (22,992)
Net increase (decrease) from fund share transactions (Note 4).. 163,452 (34,344)
---------- ----------
Net increase in net assets................................. $ 136,033 $ 17,299
NET ASSETS:
At beginning of period......................................... 537,682 520,383
---------- ----------
At end of period............................................... $ 673,715 $ 537,682
========== ==========
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT TOTAL RETURN BOND PORTFOLIO
===============================================================================
<TABLE>
<CAPTION>
For the Period from
Six Months Year Year Dec. 7, 1993
Ended Ended Ended (start of business) to
FINANCIAL HIGHLIGHTS June 30, 1996 Dec. 31, 1995 Dec. 31, 1994 Dec. 31, 1993(2)
- -------------------------------------------------------------------------------------------------------------------------------
(Unaudited)
<S> <C> <C> <C> <C>
Net asset value, beginning of period.... $ 9.830 $ 8.840 $ 9.930 $ 10.000
----------- ----------- ----------- ------------
Income from Investment Operations:
Net investment income(1)............. $ 0.356 $ 0.469 $ 0.398 $ 0.019
Net realized and unrealized gain
(loss) on investments.............. (0.490) 0.990 (1.090) (0.070)
------------ ----------- ------------ ------------
Total income (loss) from investment
operations...................... $ (0.134) $ 1.459 $ (0.692) $ (0.051)
------------ ------------ ------------ ------------
Less Distributions to Shareholders:
From net investment income........... $ (0.356) $ (0.469) $ (0.398) $ (0.019)
------------ ------------ ------------ ------------
Net asset value, end of period.......... $ 9.340 $ 9.830 $ 8.840 $ 9.930
============ ============ ============ ===========
Total Return(3)......................... (1.36%) 16.9% (7.1%) (0.5%)
Ratios/Supplemental Data:
Net assets, end of period (000 omitted) $ 674 $ 538 $ 520 $ 167
Ratio of net expenses to average
net assets......................... 1.23%(4)(5) 1.26%(5) 0.90% 0.70%(4)
Ratio of net investment income to
average net assets ................ 4.58%(4)(5) 5.09%(5) 4.49% 2.50%(4)
Portfolio Turnover Rate.............. 169% 186% 23% 0%
<FN>
(1)During the six month period ended June 30, 1996 and the years ended December
31, 1995 and 1994, the Investment Adviser and the Administrator reduced their
fees, and the Investment Adviser was allocated a portion of the 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........ $ (0.121) $ (0.187) $ (0.143)
========== ========== ==========
Ratios (As a percentage of average net assets):
Expenses........................... 7.03%(4) 8.38% 7.00%
========== ========== ==========
Net investment loss................ (1.56%)(4) (2.03%) (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.
(5)During the six month period ended June 30, 1996 and the year ended December
31, 1995, custodian fees were reduced by credits resulting from cash balances
the Trust maintained with the custodian (Note 1D). The computation of net
expenses to average daily net assets reported above is computed without
consideration of such credits, in accordance with reporting regulations in
effect beginning in 1995. If these credits were considered, the ratio of
expenses to average net assets would have been reduced to 0.90%.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT SELECTED BLUE CHIP PORTFOLIO (WSBCP)
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996 (UNAUDITED)
============================================================================
Shares Value
- ----------------------------------------------------------------------------
EQUITY INTERESTS -- 94.7%
APPAREL -- 1.8%
VF Corp...................... 800 $ 47,700
-----------
AUTOMOTIVE -- 3.2%
Eaton Corporation............ 700 $ 41,038
Echlin Inc................... 1,100 41,663
-----------
$ 82,701
-----------
BEVERAGES -- 3.9%
Anheuser-Busch Companies..... 700 $ 52,500
Brown-Forman Corp............ 1,200 48,000
-----------
$ 100,500
-----------
CHEMICALS -- 6.1%
Goodyear Tire & Rubber....... 1,000 $ 48,250
Lubrizol Corporation (The)... 400 12,150
Morton International Inc..... 1,000 37,250
PPG Industries, Incorporated. 900 43,875
Rohm & Haas Company.......... 300 18,825
-----------
$ 160,350
-----------
CONSTRUCTION -- 1.8%
Fleetwood Enterprises, Inc... 1,500 $ 46,500
-----------
DIVERSIFIED -- 2.7%
Crane Co..................... 1,200 $ 49,200
Johnson Controls, Inc........ 300 20,850
-----------
$ 70,050
-----------
DRUGS, COSMETICS & HEALTH CARE -- 3.9%
Alberto Culver Company....... 1,200 $ 48,000
Bristol-Myers Squibb Co...... 600 54,000
-----------
$ 102,000
-----------
ELECTRONICS -- 8.2%
Compaq Computer.............. 900 $ 44,325
Hewlett-Packard Co........... 400 39,850
Raytheon Company............. 900 46,463
Seagate Technology, Inc...... 800 36,000
Sun Microsystems, Inc.*...... 800 47,100
-----------
$ 213,738
-----------
FINANCIAL -- 18.7%
Bancorp Hawaii, Inc.......... 1,100 $ 39,600
A.G. Edwards, Inc............ 1,900 51,538
First Colony Corp............ 1,500 46,500
First Hawaiian, Inc*......... 1,100 31,350
First Virginia Banks, Inc.... 1,200 48,000
MBIA Inc..................... 300 23,363
Raymond James Financial Corp. 2,300 52,038
Southern National Corp....... 1,700 53,975
Southtrust Corp.............. 1,700 47,813
Star Banc Corp............... 600 40,425
Suntrust Banks, Inc.......... 1,400 51,800
-----------
$ 486,402
-----------
MACHINERY & EQUIPMENT -- 5.8%
Briggs & Stratton Corp....... 1,000 $ 41,125
Dover Corporation............ 400 18,450
Ingersoll Rand Co............ 1,200 52,500
Pitney Bowes, Inc............ 800 38,200
-----------
$ 150,275
-----------
<PAGE>
METAL PRODUCTS MANUFACTURERS -- 7.8%
CLARCOR...................... 2,000 $ 49,500
Kaydon Corporation........... 1,500 64,500
Snap-On Inc.................. 1,000 47,375
Trinity Industries........... 1,200 40,800
-----------
$ 202,175
-----------
OIL, GAS, COAL & RELATED SERVICES -- 0.7%
Exxon Corporation............ 200 $ 17,375
-----------
PRINTING & PUBLISHING -- 3.2%
Banta Corporation............ 1,800 $ 45,450
Harland (John H.) Co......... 1,600 39,400
-----------
$ 84,850
-----------
RECREATION -- 6.2%
International Dairy Queen*... 1,700 $ 37,400
Luby's Cafeterias Inc........ 700 16,450
Ryan's Family Steak House.... 5,700 52,725
Sturm Ruger & Company, Inc... 1,200 55,800
-----------
$ 162,375
-----------
RETAILERS -- 6.2%
Claire's Stores Inc.......... 2,300 $ 63,534
Dress Barn (The)*............ 1,400 14,700
Family Dollar Stores......... 2,000 34,750
Ross Stores, Inc............. 1,400 48,650
-----------
$ 161,634
-----------
TRANSPORTATION - 3.9%
Atlantic Southeast Airlines.. 1,900 $ 53,675
Illinois Central Corp........ 1,700 48,238
-----------
$ 101,913
-----------
UTILITIES -- 7.5%
DQE Inc...................... 1,600 $ 44,000
Duke Power Company........... 900 46,125
Nipsco Industries............ 1,100 44,275
Sprint Corporation........... 500 21,000
Wisconsin Energy............. 1,400 40,425
-----------
$ 195,825
-----------
MISCELLANEOUS -- 3.1%
Marshall Industries*......... 1,500 $ 42,000
Stanhome Inc................. 1,500 39,750
-----------
$ 81,750
-----------
TOTAL EQUITY INTERESTS -- 94.7%
(identified cost, $2,075,024) $ 2,468,113
OTHER ASSETS
LESS LIABILITIES -- 5.3% 137,503
-----------
NET ASSETS -- 100.0% $ 2,605,616
============
* Non-income-producing security.
See notes to financial statements
<PAGE>
WRIGHT SELECTED BLUE CHIP PORTFOLIO
==============================================================================
STATEMENT OF ASSETS AND LIABILITIES
June 30,1996 (Unaudited)
- ------------------------------------------------------------------------------
ASSETS:
Investments --
Identified cost.................... $2,075,024
Unrealized appreciation............ 393,089
---------
Total value (Note 1A)............ $2,468,113
Cash................................. 131,320
Dividends receivable................. 4,423
Deferred organizational costs (Note 1E) 4,425
Receivable from Investment Adviser... 4,824
---------
Total Assets....................... $2,613,105
---------
LIABILITIES:
Trustees fees payable................ $ 125
Custodian fee payable (Note 1D)...... 2,869
Accrued expenses..................... 4,495
---------
Total Liabilities.................. $ 7,489
---------
NET ASSETS.............................. $2,605,616
==========
NET ASSETS CONSIST OF:
Paid-in capital......................... $2,049,515
Accumulated net realized gain on investment
transactions......................... 141,579
Undistributed net investment income..... 21,433
Unrealized appreciation of investments.. 393,089
---------
Net assets applicable to outstanding
shares............................ $2,605,616
==========
SHARES OF BENEFICIAL INTEREST
OUTSTANDING.......................... 204,371
==========
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST............... $12.75
==========
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1996 (Unaudited)
- ------------------------------------------------------------------------------
INVESTMENT INCOME:
Income --
Dividends............................ $ 27,613
---------
Expenses --
Investment Adviser fee (Note 3)...... $ 7,927
Administrator fee (Note 3)........... 610
Amortization of organization expense
(Note 1E).......................... 862
Compensation of Trustees not
affiliated with the Investment
Adviser or Administrator........... 813
Custodian fee (Note 1D).............. 9,126
Audit................................ 8,750
Legal................................ 130
Printing............................. 754
Registration costs................... 750
Miscellaneous........................ 548
---------
Total expenses................... $ 30,270
---------
Deduct --
Reduction of Custodian fee........... $ 2,085
Preliminary reduction of Investment
Adviser fee........................ 7,927
Preliminary reduction of Administrator
fee................................ 1,390
Preliminary allocation of expense to the
Investment Adviser................. 4,824
---------
Total deducted................... $ 16,226
---------
Net expenses..................... $ 14,044
---------
Net investment income.......... $ 13,569
---------
REALIZED AND UNREALIZED GAIN:
Net realized gain on investment
transactions.......................... $ 141,579
Change in unrealized appreciation of
investments........................... 118,977
---------
Net realized and unrealized gain..... $ 260,556
---------
Net increase in net assets from
operations......................... $ 274,125
==========
See notes to financial statements
<PAGE>
WRIGHT SELECTED BLUE CHIP PORTFOLIO
===============================================================================
<TABLE>
<CAPTION>
Six Months Ended Year Ended
STATEMENTS OF CHANGES IN NET ASSETS June 30, 1996 December 31, 1995
- ------------------------------------------------------------------------------------------------------------------------------
(Unaudited)
INCREASE IN NET ASSETS:
From operations --
<S> <C> <C>
Net investment income........................................ $ 13,569 $ 16,862
Net realized gain on investment transactions................. 141,579 79,060
Change in unrealized appreciation of investments............. 118,977 300,016
---------- ----------
Increase in net assets from operations..................... $ 274,125 $ 395,938
Distributions to shareholders from net investment income....... (2,069) (13,333)
Distributions to shareholders from net realized gain on
investment transactions...................................... -- (54,284)
Undistributed net investment income included in price of shares
sold and redeemed (Note 1F).................................. 760 3,662
Net increase from fund share transactions (exclusive of amounts
allocated to net investment income) (Note 4)................. 93,970 454,382
---------- ----------
Net increase in net assets................................. $ 366,786 $ 786,365
NET ASSETS:
At beginning of period......................................... 2,238,830 1,452,465
---------- ----------
At end of period............................................... $2,605,616 $2,238,830
========== ===========
UNDISTRIBUTED NET INVESTMENT INCOME
INCLUDED IN NET ASSETS......................................... $ 21,433 $ 9,173
========== ===========
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT SELECTED BLUE CHIP PORTFOLIO
===============================================================================
<TABLE>
<CAPTION>
For the Period from
Six Months Year January 6, 1994
Ended Ended (start of business) to
FINANCIAL HIGHLIGHTS June 30, 1996 Dec. 31, 1995 December 31, 1994
- ------------------------------------------------------------------------------------------------------------------------------
(Unaudited)
<S> <C> <C> <C>
Net asset value, beginning of period............. $ 11.410 $ 9.320 $ 10.000
----------- ----------- ----------
Income from Investment Operations:
Net investment income(1)...................... $ 0.068 $ 0.100 $ 0.092
Net realized and unrealized gain (loss) on
investments................................. 1.282 2.345 (0.712)
----------- ----------- -----------
Total income (loss) from investment operations $ 1.350 $ 2.445 $ (0.620)
----------- ----------- ----------
Less Distributions to Shareholders:
From net investment income.................... (0.010) (0.070) (0.060)
From net realized gain on investment transactions -- (0.285) --
----------- ----------- ----------
Total distributions......................... $ (0.010) $ (0.355) $ (0.060)
----------- ----------- ----------
Net asset value, end of period................... $ 12.750 $ 11.410 $ 9.320
========== ========== ==========
Total Return(3).................................. 11.8% 26.3% (6.2%)
Ratios/Supplemental Data:
Net assets, end of period (000 omitted)....... $2,606 $2,239 $1,452
Ratio of net expenses to average net assets... 1.32%(2)(4) 1.60%(4) 1.15%(2)
Ratio of net investment income to average net assets 1.11%(2)(4) 0.96%(4) 1.16%(2)
Portfolio Turnover Rate....................... 32% 64% 74%
Average commision rate paid (5)............... $0.078 -- --
<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 the 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................... $ (0.013) $ (0.017) $ (0.078)
========== ========== ==========
Ratios (As a percentage of average net assets):
Expenses...................................... 2.48% (2) 2.72% 3.30% (2)
========== ========== ==========
Net investment loss........................... (0.22%)(2) (0.16%) (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.
(4)During the six months ended June 30, 1996 and the year ended December 31,
1995, custodian fees were reduced by credits resulting from cash balances the
Trust maintained with the custodian (Note 1D). The computation of net
expenses to average daily net assets reported above is computed without
consideration of such credits, in accordance with reporting regulations in
effect beginning in 1995. If these credits were considered, the ratio of
expenses to average net assets would have been reduced to 1.15%.
(5)Average commission rate paid is computed by dividing the total dollar amount
of commissions paid during the fiscal year by the total number of shares
purchased and sold during the fiscal year for which commissions were charged.
For fiscal years beginning on or after September 1, 1995, a Fund is required
to disclose its average commission rate per share for security trades on
which commissions are charged.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT INTERNATIONAL BLUE CHIP PORTFOLIO (WIBCP)
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996 (UNAUDITED)
===============================================================================
Shares Value
- -------------------------------------------------------------------------------
EQUITY INTERESTS -- 78.7%
AUSTRALIA -- 4.1%
Broken Hill Proprietary (ADR) 700 $ 19,512
F.H. Faulding (ADR).......... 1,320 31,791
-----------
$ 51,303
-----------
BELGIUM -- 2.7%
Colruyt SA *................. 100 $ 33,995
-----------
FRANCE -- 7.2%
L'Air Liquide SA............. 100 $ 17,661
L'Oreal (ADR)................ 360 23,902
LVMH Moet-Hennessy
Louis Vuitton............. 500 23,687
Synthelabo................... 300 25,355
-----------
$ 90,605
-----------
HONG KONG -- 8.0%
Hang Lung Devel. Co. (ADR)... 2,700 $ 25,376
Hong Kong Aircraft Engineering* 5,600 16,820
Hong Kong & China Gas Co. (ADR) 14,686 23,430
Hong Kong Electric Hold. (ADR) 5,700 17,378
Swire Pacific Limited (ADR).. 2,100 17,973
-----------
$ 100,977
-----------
IRELAND -- 2.3%
Greencore PLC*............... 5,500 $ 28,623
-----------
JAPAN -- 8.8%
Kurita Water Industries Ltd.* 1,100 $ 26,822
Santen Pharmaceutical Co.,Ltd.* 1,100 25,616
Seven Eleven Japan........... 363 23,134
Yurtec Corporation *......... 2,000 35,251
-----------
$ 110,823
-----------
MALAYSIA -- 4.2%
Amalgamated Industrial Steel* 19,200 $ 14,465
Genting Berhad (ADR)......... 2,000 15,630
Perlis Plantations Berhad (ADR) 6,000 23,083
-----------
$ 53,178
-----------
MEXICO -- 4.4%
Cifra SA..................... 9,400 $ 13,567
Kimberly Clark de Mexico..... 700 25,489
Telefonos de Mexico.......... 500 16,750
-----------
$ 55,806
-----------
NETHERLANDS -- 8.2%
Elsevier (ADR)............... 1,200 $ 18,210
Getronics N.V................ 1,240 27,462
Koninklijke Ahold (ADR)*..... 516 27,929
Unilever NV.................. 200 29,025
-----------
$ 102,626
-----------
SINGAPORE -- 1.9%
Singapore Press Holdings *... 1,200 $ 23,554
-----------
SOUTH AFRICA -- 1.9%
South African Breweries Limited 800 $ 23,461
-----------
SPAIN -- 2.5%
Empresa Nacional de Electricidad
(ADR)..................... 500 $ 31,313
-----------
SWEDEN -- 4.8%
Astra AB..................... 640 $ 27,902
H & M Hennes & Mauritz AB*... 350 32,471
-----------
$ 60,373
-----------
<PAGE>
SWITZERLAND -- 4.6%
Nestles (ADR)................ 400 $ 22,834
Sandoz (ADR)................. 600 34,299
-----------
$ 57,133
-----------
UNITED KINGDOM -- 13.1%
Cable & Wireless (ADR)....... 1,030 $ 20,343
Christian Salvesen (ADR) *... 1,130 22,386
Halma*....................... 9,866 26,975
Kwik Save Group *............ 2,800 19,574
Marks & Spencer (ADR)........ 700 30,705
Polypipe PLC *............... 8,000 24,980
Wolseley *................... 2,835 19,951
-----------
$ 164,914
-----------
TOTAL EQUITY INTERESTS -- 78.7%
(identified cost, $878,860) $ 988,684
OTHER ASSETS
LESS LIABILITIES -- 21.3% 268,196
-----------
NET ASSETS -- 100.0% $ 1,256,880
===========
* Non-income-producing security.
ADR - American Depository Receipt
See notes to financial statements
<PAGE>
WRIGHT INTERNATIONAL BLUE CHIP PORTFOLIO (WIBCP)
==============================================================================
STATEMENT OF ASSETS AND LIABILITIES
June 30,1996 (Unaudited)
- ------------------------------------------------------------------------------
ASSETS:
Investments --
Identified cost.................... $ 878,860
Unrealized appreciation............ 109,824
---------
Total value (Note 1A)............ $ 988,684
Cash................................. 251,919
Dividends receivable................. 6,335
Deferred organizational costs (Note 1E) 4,420
Receivable from Investment Adviser... 13,492
Receivable for foreign taxes withheld 541
---------
Total assets....................... $1,265,391
---------
LIABILITIES:
Trustees fees payable................ $ 125
Custodian fee payable (Note 1D)...... 3,892
Accrued expenses..................... 4,494
---------
Total liabilities.................. $ 8,511
---------
NET ASSETS.............................. $1,256,880
==========
NET ASSETS CONSIST OF:
Paid-in capital......................... $1,095,911
Accumulated net realized gain on investment
transactions......................... 46,417
Undistributed net investment income..... 4,654
Unrealized appreciation of investments and
foreign currency..................... 109,898
---------
Net assets applicable to outstanding
shares.............................. $1,256,880
==========
SHARES OF BENEFICIAL INTEREST
OUTSTANDING.......................... 115,084
==========
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST............... $10.92
==========
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1996 (Unaudited)
- ----------------------------------------------------------------------------
INVESTMENT INCOME:
Income --
Dividends............................ $ 15,008
Less: Foreign taxes.................. (1,745)
---------
Gross income....................... $ 13,263
---------
Expenses --
Investment Adviser fee (Note 3)...... $ 4,899
Administrator fee (Note 3)........... 306
Amortization of organization expense
(Note 1E).......................... 862
Compensation of Trustees not
affiliated with the Investment
Adviser or Administrator.......... 813
Custodian fee (Note 1D).............. 14,913
Audit................................ 8,750
Legal................................ 130
Printing............................. 754
Registration costs................... 424
---------
Total expenses................... $ 31,851
---------
Deduct --
Reduction of Custodian fee........... $ 1,838
Reduction of Investment Adviser fee.. 4,899
Reduction of Administrator fee....... 306
Allocation of expense to the
Investment Adviser................. 13,492
---------
Total deducted................... $ 20,535
---------
Net expenses..................... $ 11,316
---------
Net investment income.......... $ 1,947
---------
REALIZED AND UNREALIZED GAIN:
Net realized gain on investment
transactions......................... $ 50,073
Change in unrealized appreciation of
investments and foreign currency..... 51,823
---------
Net realized and unrealized gain..... $ 101,896
---------
Net increase in net assets from
operations......................... $ 103,843
==========
See notes to financial statements
<PAGE>
WRIGHT INTERNATIONAL BLUE CHIP PORTFOLIO
===============================================================================
<TABLE>
<CAPTION>
Six Months Ended Year Ended
STATEMENTS OF CHANGES IN NET ASSETS June 30, 1996 December 31, 1995
- ------------------------------------------------------------------------------------------------------------------------------
(Unaudited)
INCREASE (DECREASE) IN NET ASSETS:
From operations --
<S> <C> <C>
Net investment income........................................ $ 1,947 $ 755
Net realized gain (loss) on investments...................... 50,073 (3,923)
Change in unrealized appreciation of investments and
foreign currency........................................... 51,823 130,826
---------- ----------
Increase in net assets from operations..................... $ 103,843 $ 127,658
Undistributed net investment income included in price of shares
sold and redeemed (Note 1F).................................. (239) (344)
Distributions to shareholders from net investment income....... -- (2,477)
Tax distribution from paid-in capital.......................... -- (4,280)
Net increase (decrease) from fund share transactions (exclusive of
amounts allocated to net investment income) (Note 4)......... (211,595) 15,368
---------- ----------
Net increase (decrease) in net assets...................... $ (107,991) $ 135,925
NET ASSETS:
At beginning of period......................................... 1,364,871 1,228,946
---------- ----------
At end of period............................................... $1,256,880 $1,364,871
=========== ===========
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET
INVESTMENT INCOME (LOSS) INCLUDED IN NET ASSETS................ $ 4,654 $ (2,946)
=========== ===========
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT INTERNATIONAL BLUE CHIP PORTFOLIO
===============================================================================
<TABLE>
<CAPTION>
For the Period from
Six Months Year January 6, 1994
Ended Ended (start of business) to
FINANCIAL HIGHLIGHTS June 30, 1996 Dec. 31, 1995 December 31, 1994
- ------------------------------------------------------------------------------------------------------------------------------
(Unaudited)
<S> <C> <C> <C>
Net asset value, beginning of period............. $ 10.060 $ 9.140 $ 10.000
----------- ----------- ----------
Income from Investment Operations:
Net investment income(1)...................... $ 0.019 $ 0.003 $ 0.031
Net realized and unrealized gain (loss) on investments 0.841 0.967 (0.886)
----------- ----------- ----------
Total income (loss) from investment operations $ 0.860 $ 0.970 $ (0.855)
----------- ----------- ----------
Less distributions to shareholders:
From net investment income.................. -- (0.005) (0.005)
In excess of net investment income.......... -- (0.013) --
Tax distribution from paid-in capital....... -- (0.032) --
----------- ----------- ----------
Total disributions declared to shareholders. $ -- $ (0.050) $ (0.005)
----------- ----------- ----------
Net asset value, end of period................... $ 10.920 $ 10.060 $ 9.140
========== ========== ==========
Total Return(3).................................. 8.6% 10.6% (8.1%)
Ratios/Supplemental Data:
Net assets, end of period (000 omitted)....... $ 1,257 $ 1,365 $ 1,229
Ratio of net expenses to average net assets... 2.15%(2)(4) 2.28%(4) 1.80%(2)
Ratio of net investment income to average net assets 0.32%(2)(4) 0.06%(4) 0.19%(2)
Portfolio Turnover Rate....................... 9% 31% 0%
Average commission rate paid (5).............. $ 0.064 -- --
<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 the 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................... $ (0.181) $ (0.920) $ (0.434)
========== ========== ==========
Ratios (As a percentage of average net assets):
Expenses...................................... 5.20%(2) 4.18% 4.65%(2)
========== ========== ==========
Net investment loss........................... (3.04%)(2) (1.85%) (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.
(4)During the six months ended June 30, 1996 and the year ended December 31,
1995, custodian fees were reduced by credits resulting from cash balances the
Trust maintained with the custodian (Note 1D). The computation of net
expenses to average daily net assets reported above is computed without
consideration of such credits, in accordance with reporting regulations in
effect beginning in 1995. If these credits were considered, the ratio of
expenses to average net assets would have been reduced to 1.85%.
(5)Average commission rate paid is computed by dividing the total dollar amount
of commissions paid during the fiscal year by the total number of shares
purchased and sold during the fiscal year for which commissions were charged.
For fiscal years beginning on or after September 1, 1995, a Fund is required
to disclose its average commission rate per share for security trades on
which commissions are charged.
</FN>
</TABLE>
See notes to financial statements
<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 and
rates. At December 31,1995, the Trust, for federal income tax purposes,
had a capital loss carryover of $15,035 for WNTBP, $14,499 for WTRBP,
and $3,656 for WIBCP, 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.
<PAGE>
Pursuant to the Code, such capital loss carryovers will
expire as follows:
12/31 WNTBP WTRBP WIBCP
---------------------------------------------------------------------
2002 $ 5,872 $ 641 $ --
2003 9,163 13,858 3,656
---------------------------------------------------------------------
D. Expense Reduction -- The Fund has entered into an arrangement with its
custodian agent whereby interest earned on uninvested cash balances are
used to offset custody fees. All significant reductions are reported as
a reduction of expenses in the Statement of Operations.
E. Deferred Organization Expenses -- Costs incurred by the Portfolios in
connection with their organization are being amortized on a straight
line basis over five years from the date the Portfolio commenced
operations.
F. 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.
G. Use of Estimates -- The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial
statements and the reported amounts of revenue and expense during the
reporting period. Actual results could differ from those estimates.
H. Interim Financial Information -- The interim financial statements
relating to June 30, 1996 and for the period then ended have not been
audited by independent certified public accountants, but in the opinion
of the Trust's management, reflect all adjustments, consisting of
normal recurring adjustments, necessary for the fair presentation of
the financial statements.
I. 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.
<PAGE>
(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. 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. Distributions in excess of tax basis
earnings and profits are reported in the financial statements as a return of
capital. Permanent differences between book and tax accounting treatments may
result in reclassifications among various components of net assets.
(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 ("Investment
Adviser"). 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" or "Administrator") 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 six months ended June 30, 1996, the effective annual
rate for advisory and administration charges for each Portfolio was as follows:
WNTBP WTRBP WSBCP WIBCP
- -------------------------------------------------------------------------------
Investment Advisory 0.45% 0.45% 0.65% 0.80%
Administration 0.05% 0.05% 0.05% 0.05%
- -------------------------------------------------------------------------------
To enhance the net income of the Portfolios, Wright and Eaton Vance made a
preliminary reduction of their fees and Wright made a preliminary assumption of
a portion of each Portfolio's expenses as follows:
<TABLE>
WNTBP WTRBP WSBCP WIBCP
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Preliminary reduction of Investment Adviser fees $ 807 $ 1,347 $ 7,927 $ 4,899
Preliminary allocation of expense to the Investment Adviser 17,326 15,882 4,824 13,492
Preliminary reduction of Administrator fees 90 150 1,390 306
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
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, 1996 (Unaudited) December 31, 1995
------------------------- --------------------
Shares Amount Shares Amount
- ---------------------------------------------------------------------------------------------------------------------------
Wright Near Term Bond Portfolio --
<S> <C> <C> <C> <C>
Sales.................................. 11,175 $ 107,833 14,521 $ 141,824
Issued to shareholders in payment
of distributions declared............ 683 7,980 1,644 15,922
Redemptions............................ (5,712) (55,788) (31,513) (302,860)
-------- ---------- -------- ----------
Net increase (decrease)............ 6,146 $ 60,025 (15,348) $ (145,114)
========= =========== ========= ===========
Wright Total Return Bond Portfolio --
Sales.................................. 23,886 $ 224,440 18,926 $ 183,434
Issued to shareholders in payment
of distributions declared............ 1,149 10,883 2,433 22,812
Redemptions............................ (7,617) (71,871) (25,529) (240,590)
-------- ---------- -------- ----------
Net increase (decrease)............ 17,418 $ 163,452 (4,170) $ (34,344)
========= =========== ========= ===========
Wright Selected Blue Chip Portfolio --
Sales.................................. 29,038 $ 344,483 74,735 $ 808,667
Issued to shareholders in payment
of distributions declared............ 172 2,056 5,957 67,259
Redemptions............................ (21,115) (252,569) (40,303) (421,544)
-------- ---------- -------- ----------
Net increase....................... 8,095 $ 93,970 40,389 $ 454,382
========= =========== ========= ===========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Six Months Ended Year Ended
June 30, 1996 (Unaudited) December 31, 1995
------------------------- --------------------
Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------
Wright International Blue Chip Portfolio --
<S> <C> <C> <C> <C>
Sales.................................. 14,339 $ 153,097 46,535 $ 453,824
Issued to shareholders in payment
of distributions declared............ -- -- 678 6,757
Redemptions............................ (34,970) (364,692) (46,025) (445,213)
-------- ---------- -------- ----------
Net increase (decrease)............ (20,631) $ (211,595) 1,188 $ 15,368
========= =========== ========= ===========
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(5) INVESTMENT TRANSACTIONS
Purchases and sales and maturities of investments, other than short-term
obligations, for the six months ended June 30, 1996, 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.... $ -- $ -- $ 1,006,808 $ 99,191
============= ============= ============= =============
U.S. Gov't Obligations........ $ 99,508 $ 222,066 $ -- $ --
============= ============= ============= =============
Sales --
Non-U.S. Gov't Obligations.... $ -- $ 24,998 $ 746,896 $ 392,767
============= ============= ============= =============
U.S. Gov't Obligations........ $ 10,041 $ -- $ -- $ --
============= ============= ============= =============
</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, 1996, 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 Portfolio Blue Chip Portfolio
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Aggregate Cost................... $ 377,055 $ 638,301 $ 2,075,024 $ 878,860
============= ============= ============= =============
Gross unrealized appreciation.... $ 3,681 $ -- $ 418,710 $ 161,171
Gross unrealized depreciation.... -- (1,318) (25,621) (51,347)
------------ ------------ ------------ ------------
Net unrealized appreciation
(depreciation).............. $ 3,681 $ (1,318) $ 393,089 $ 109,824
============= ============= ============= =============
- ---------------------------------------------------------------------------------------------------------------------------------
</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 significant borrowings
outstanding under the line of credit during the six months ended June 30, 1996.
(8) RISKS ASSOCIATED WITH FOREIGN INVESTMENTS
The Wright International Blue Chip Portfolio invests in securities issued
by companies whose principal business activities are outside the United States
which may involve significant risks not present in domestic investments. For
example, there is generally less publicly available information about foreign
companies, particularly those not subject to the disclosure and reporting
requirements of the U.S. securities laws. Foreign issuers are generally not
bound by uniform accounting, auditing, and financial reporting requirements and
standards of practice comparable to those applicable to domestic issuers.
Investments in foreign securities
<PAGE>
also involve the risk of possible adverse changes in investment or exchange
control regulations, expropriation or confiscatory taxation, limitation on the
removal of funds or other assets of the Trust, political or financial
instability or diplomatic and other developments which could affect such
investments. Foreign stock markets, while growing in volume and sophistication,
are generally not as developed as those in the United States, and securities of
some foreign issuers (particularly those located in developing countries) may be
less liquid and more volatile than securities of comparable U.S. companies. In
general, there is less overall governmental supervision and regulation of
foreign securities markets, broker-dealers, and issuers than in the United
States.
Settlement of securities transactions in foreign countries may be delayed
and is generally less frequent than in the United States, which could affect the
liquidity of the Trust's assets. The Trust may be unable to sell securities
where the registration process is incomplete and may experience delays in
receipt of dividends.
<PAGE>
- ------------------------------------------------------------------------------
Description of art work on back cover of report
Solid blue box with name of Trust in upper left hand corner of page.
- ------------------------------------------------------------------------------
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
89 South Street
Boston, Massachusetts 02111
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
