- ------------------------------------------------------------------------------
Description of art work on front cover of report
Solid blue box with name of Trust in upper left hand corner of page.
- ------------------------------------------------------------------------------
ANNUAL
REPORT
December 31, 1995
<PAGE>
WRIGHT MANAGED BLUE CHIP SERIES TRUST
===============================================================================
WRIGHT MANAGED BLUE CHIP SERIES TRUST IS A DIVERSIFIED, OPEN-END MANAGEMENT
INVESTMENT COMPANY, THAT IS DESIGNED TO BE THE FUNDING VEHICLE FOR VARIOUS
INSURANCE CONTRACTS TO BE OFFERED BY PFL LIFE INSURANCE COMPANY AND OTHER
PARTICIPATING INSURANCE COMPANIES. SHARES OF THE TRUST WILL BE OFFERED
EXCLUSIVELY TO THE SEPARATE ACCOUNTS OF SUCH INSURANCE COMPANIES. FOUR MANAGED
INVESTMENT PORTFOLIOS OF THE TRUST AND THEIR INVESTMENT OBJECTIVES ARE DESCRIBED
BELOW:
WRIGHT NEAR TERM BOND PORTFOLIO (WNTBP) seeks high total return, to the extent
consistent with reasonable safety, by investing primarily in debt securities
directly issued or guaranteed by the U.S. Government. The Portfolio expects to
maintain an average weighted portfolio maturity of five years or less.
WRIGHT TOTAL RETURN BOND PORTFOLIO (WTRBP) seeks high total return, consisting
of current income and capital appreciation, by investing primarily in
obligations issued, or guaranteed by the U.S. Government and its agencies or
instrumentalities and in high-grade corporate debt securities of any maturity.
WRIGHT SELECTED BLUE CHIP PORTFOLIO (WSBCP) seeks long-term capital appreciation
and, as a secondary objective, reasonable, current income by investing primarily
in equity securities of well-established U.S. companies that meet the investment
adviser's quality standards.
WRIGHT INTERNATIONAL BLUE CHIP PORTFOLIO (WIBCP) seeks long-term capital
appreciation by investing primarily in equity securities of well-established,
non-U.S. companies that meet the investment adviser's quality standards.
TABLE OF CONTENTS
Investment Objectives.....Inside Front Cover
Report to Shareholders.................... 1
Wright Near Term Bond Portfolio
Portfolio of Investments................ 3
Financial Statements.................... 4
Wright Total Return Bond Portfolio
Portfolio of Investments................ 7
Financial Statements.................... 8
Wright Selected Blue Chip Portfolio
Portfolio of Investments............... 11
Financial Statements................... 14
Wright International Blue Chip Portfolio
Portfolio of Investments............... 17
Financial Statements................... 19
Notes to Financial Statements............ 22
<PAGE>
WRIGHT MANAGED BLUE CHIP SERIES TRUST
January 1996
Dear Shareholders:
I am happy to report that 1995 was a much more profitable year for
investors than 1994. In the U.S., stock market values increased by an estimated
$1.75 trillion, a record for any year, while bonds recouped as much as $750
billion in value. Improved fundamentals propelled the Dow Jones Industrial
Average past two century marks - 4000 and 5000 - during1995: corporate profits
increased 10%-15% to record levels, while long-term interest rates declined by
roughly two percentage points. Most foreign stock markets advanced during 1995,
and foreign bonds also performed well.
The U.S. economy followed a predictable course during 1995, slowing in
response to 1994's tighter monetary policies. Economic data released since the
Commerce Department re-opened has generally showed that manufacturing contracted
in December and January, while inflation pressures continued to subside. Sharp
declines in interest rates during 1995 - and those in prospect for 1996 - should
provide needed energy to the U.S. economy. Interest rates are down two
percentage points since the 1994 elections. Whats more, the Federal Reserve
will most likely reduce short-term rates by another 50 to 75 basis points during
the first half of 1996. Foreign central banks have also been reducing interest
rates to promote stronger economic expansion.
What can the stock and bond markets do for an encore in 1996? It has been
more than five years since the last 10% decline in the stock market averages;
one might conclude from this that stocks may be vulnerable to selling pressures
during 1996. Nonetheless, there are a number of positive factors in the outlook
for stocks over 1996-97, in particular the prospect of more easing by the
Federal Reserve. As 1996 begins, stock market valuations are close to fair
value, so long as the economic expansion remains on track and interest rates
continue in a downtrend. If the Federal Reserve aggressively lowers interest
rates during the first half of 1996, as we expect, Treasury bond yields could
conceivably fall to 5.5%, supporting higher price/earnings multiples and
enhancing the outlook for corporate profits. The current budget impasse in
Washington is an uncertainty for the markets in early 1996. But ultimately, a
workable plan for bringing down the federal budget deficit to the point of
insignificance by early in the next century should emerge.
Consistently low inflation and a continuation of the secular decline in
interest rates ought to make for respectable real returns in global markets over
the next several years, particularly for high-quality equities, where market
valuations are more moderate. While Wright looks for a generally positive
investment environment over the coming five years, it should be understood that
past performance is not predictive of future performance.
Sincerely,
Peter M. Donovan, President
<PAGE>
<TABLE>
WRIGHT MANAGED BLUE CHIP SERIES TRUST
WRIGHT SELECTED BLUE CHIP PORTFOLIO
Growth of $10,000 invested 1/31/94* through 12/31/95
Annual Total Return
--------------------------------
Lst 1 Yr Since Incept*
<S> <C> <C>
Wright Selected Blue Chip Portfolio +26.3% +9.2%
Lipper Growth Funds +30.8% +12.5%
NYSE +34.9% +14.9%
Wright U.S. Fiduciary Equity Index +29.1% +13.2%
The cumulative total return of a U.S. $10,000 investment in the
WRIGHT SELECTED BLUE CHIP PORTFOLIO on 1/31/94 would have grown
to $11,834 by December 31, 1995.
</TABLE>
<TABLE>
The following plotting points are used for comparison in the
total investment return mountain chart.
Date Wright Selected Lipper Equity NYSE Wright U.S. Fid
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 $9,374 $9,571 $9,666 $9,815
12/31/95 $11,834 $12,518 $13,037 $12,673
</TABLE>
<TABLE>
WRIGHT MANAGED BLUE CHIP SERIES TRUST
WRIGHT INTERNATIONAL BLUE CHIP PORTFOLIO
Growth of $10,000 invested 1/31/94* through 12/31/95
Annual Total Return
-----------------------------
Lst 1 Yr Since Incept*
<S> <C> <C>
Wright Int'l Blue Chip Portfolio +10.6% +0.7%
FT World Ex U.S. Index +10.4% +5.3%
Wright Int'l Fiduciary Equity Index +5.6% +2.7%
The cumulative total return of a U.S. $10,000 investment in the WRIGHT
INTERNATIONAL BLUE CHIP PORTFOLIO on 1/31/94 would have grown to
$10,126 by December 31, 1995.
</TABLE>
<TABLE>
The following plotting points are used for comparison in the total
investment return mountain chart.
Date Wright Int'l FT World Ex U.S Wright Int'l Fiduciary
Blue Chip Portfolio Index Equity Index
-----------------------------------------------------------------------------
<S> <C> <C> <C>
01/31/94 $10,000 $10,000 $10,000
12/31/94 $9,154 $9,993 $9,955
12/31/95 $10,126 $11,037 $10,515
</TABLE>
<TABLE>
WRIGHT MANAGED BLUE CHIP SERIES TRUST
WRIGHT NEAR TERM BOND PORTFOLIO
Growth of $10,000 invested 1/31/94* through 12/31/95
Annual Total Return
-----------------------------------
Lst 1 Yr Since Incept*
<S> <C> <C>
Wright Near Term Bond Portfolio +10.9% +3.5%
Lehman Gov't/Corp Index +19.2% +6.8%
Morningstar Gov't (1-5 Yrs) Funds +11.4% +4.1%
The cumulative total return of a U.S.$10,000 investment in the WRIGHT NEAR TERM
BOND PORTFOLIO on 1/31/94 would have grown to $10,677 by December 31, 1995.
</TABLE>
<TABLE>
The following plotting points are used for comparison in the total investment
return mountain chart.
Date Wright Near Term Lehman Gov't/Corp Morningstar Gov't
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
12/31/95 $10,677 $11,335 $10,799
</TABLE>
<TABLE>
WRIGHT MANAGED BLUE CHIP SERIES TRUST
WRIGHT TOTAL RETURN BOND PORTFOLIO
Growth of $10,000 invested 12/31/93* through 12/31/95
Annual Total Return
-------------------------------
Lst 1 Yr Since Incept*
<S> <C> <C>
Wright Total Return Bond Portfolio +16.9% +4.2%
Lehman Gov't/Corp Index +19.2% +7.3%
Lipper Fixed Income Funds e+15.2% e+5.6%
The cumulative total return of a U.S. $10,000 investment in the WRIGHT
TOTAL RETURN BOND PORTFOLIO on 12/31/93 would have grown to $10,863
by December 31, 1995
</TABLE>
<TABLE>
The following plotting points are used for comparison in the total
investment return mountain chart.
Date Wright Total Return Lehman Gov't/Corp Lipper Fixed
Bond Portfolio Index Income Funds
-------------------------------------------------------------------------
<S> <C> <C> <C>
12/31/93 $10,000 $10,000 $10,000
12/31/94 $9,290 $9,649 $9,672
12/31/95 $10,863 $11,506 $11,144
</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 646 Equity Growth
Funds and 1520 Fixed Income Funds and Morningstar's average of 111 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. Past performance
is not predictive of future performance.
<PAGE>
WRIGHT NEAR TERM BOND PORTFOLIO (WNTBP)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1995
===============================================================================
<TABLE>
Face Coupon Maturity Market Current Yield To
Amount Description Rate Date Price Value Yield(1) Maturity(1)
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 30,000 U.S. Treasury Bill 5.260% 2/22/96 $ 98.960 $ 29,688 5.32% 12.50%
65,000 U.S. Treasury Note 5.625% 8/31/97 100.641 65,417 5.59% 5.21%
40,000 Federal Nat'l.Mortgage Assn. 7.000% 8/11/99 102.422 40,969 6.83% 6.24%
50,000 Federal Farm Credit Bank 8.650% 10/01/99 110.422 55,211 7.83% 5.53%
50,000 Federal Home Loan Banks 7.780% 2/03/00 108.031 54,016 7.20% 5.56%
40,000 Student Loan Marketing Assn. 7.500% 3/08/00 107.125 42,850 7.00% 5.57%
----------
Total Investments (identified cost, $277,042) -- 88.2% $288,151 6.68% 6.29%
====== ======
Other Assets, less Liabilities -- 11.8% 38,413
----------
Net Assets -- 100.0% $326,564
==========
Average Maturity -- 3.0 Years(1)
<FN>
(1) Unaudited.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT NEAR TERM BOND PORTFOLIO
===============================================================================
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1995
- -------------------------------------------------------------------------------
ASSETS:
<S> <C>
Investments --
Identified cost.................... $ 277,042
Unrealized appreciation............ 11,109
---------
Total value (Note 1A)............ $ 288,151
Cash................................. 3,318
Interest receivable.................. 6,029
Deferred organizational costs (Note 1D) 5,282
Receivable from Investment Adviser... 29,915
---------
Total Assets....................... $ 332,695
---------
LIABILITIES:
Payable for Fund shares reacquired... $ 257
Trustees fees payable................ 335
Custodian fee payable (Note 3)....... 1,300
Accrued expenses..................... 4,239
---------
Total Liabilities.................. $ 6,131
---------
NET ASSETS.............................. $ 326,564
=========
NET ASSETS CONSIST OF:
Paid-in capital......................... $ 330,490
Accumulated net realized loss on investment
transactions......................... (15,035)
Unrealized appreciation of investments.. 11,109
---------
Net assets applicable to outstanding
shares ............................. $ 326,564
=========
SHARES OF BENEFICIAL INTEREST
OUTSTANDING.......................... 33,060
=========
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST............... $ 9.88
=========
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1995
- -------------------------------------------------------------------------------
INVESTMENT INCOME:
<S> <C>
Income --
Interest............................. $ 19,133
---------
Expenses --
Investment Adviser fee (Note 3)...... $ 1,563
Administrator fee (Note 3)........... 174
Compensation of Trustees not affiliated with
the Investment Adviser or Administrator 2,282
Transfer and dividend disbursing agent fees 725
Custodian fee (Note 3)............... 18,261
Amortization of organization expense
(Note 1D).......................... 1,748
Audit................................ 6,753
Legal................................ 2,223
Printing............................. 1,010
Registration costs................... 74
Miscellaneous........................ 1,681
---------
Total expenses................... $ 36,494
---------
Deduct --
Reduction of Custodian fee........... $ 1,712
Reduction of Investment Adviser fee.. 1,563
Reduction of Administrator fee....... 174
Allocation of expense to the Investment
Adviser............................. 29,915
---------
Total deducted................... $ 33,364
---------
Net expenses..................... $ 3,130
---------
Net investment income.......... $ 16,003
---------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized loss on investment
transactions ......................... $ (9,163)
Change in unrealized appreciation of
investments........................... 29,353
---------
Net realized and unrealized gain ... $ 20,190
---------
Net increase in net assets from
operations........................ $ 36,193
=========
</TABLE>
See notes to financial statements
<PAGE>
WRIGHT NEAR TERM BOND PORTFOLIO
===============================================================================
<TABLE>
For the Period from
Year January 6, 1994
Ended (start of business) to
STATEMENTS OF CHANGES IN NET ASSETS December 31, 1995 December 31, 1994
- -------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
<S> <C> <C>
From operations --
Net investment income........................................ $ 16,003 $ 14,658
Net realized loss on investment transactions................. (9,163) (5,872)
Change in unrealized appreciation of investments............. 29,353 (18,244)
---------- ----------
Increase (decrease) in net assets from operations.......... $ 36,193 $ (9,458)
Distributions to shareholders from net investment income (Note 2) (16,003) (14,658)
Net increase (decrease) from fund share transactions (Note 4).. (145,114) 475,604
---------- ----------
Net increase (decrease) in net assets...................... $ (124,924) $ 451,488
NET ASSETS:
At beginning of year........................................... 451,488 --
---------- ----------
At end of year................................................. $ 326,564 $ 451,488
=========== ===========
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT NEAR TERM BOND PORTFOLIO
===============================================================================
For the Period from
Year January 6, 1994
Ended (start of business) to
FINANCIAL HIGHLIGHTS December 31, 1995 December 31, 1994
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value, beginning of year................................ $ 9.330 $ 10.000
----------- ----------
Income from Investment Operations:
Net investment income(1)....................................... $ 0.448 $ 0.324
Net realized and unrealized gain (loss)........................ 0.550 (0.670)
----------- ----------
Total income (loss) from investment operations............... $ 0.998 $ (0.346)
----------- ----------
Less Distributions to Shareholders:
From net investment income..................................... $ (0.448) $ (0.324)
----------- ----------
Net asset value, end of year...................................... $ 9.880 $ 9.330
============ ===========
Total Return(3)................................................... 10.9% (3.2%)
Ratios/Supplemental Data:
Net assets, end of year (000 omitted).......................... $327 $451
Ratio of net expenses to average net assets.................... 1.39%(4) 0.90% (2)
Ratio of net investment income to average net assets........... 4.61% 3.43% (2)
Portfolio Turnover Rate........................................ 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................................. $ (0.438) $ (0.095)
============ ============
Ratios (As a percentage of average net assets):
Expenses..................................................... 10.51% 5.34% (2)
============ ============
Net investment loss.......................................... (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 year ended December 31, 1995, custodian fees were reduced by
credits resulting from cash balances the Trust maintained with the custodian
(Note 3). 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>
<TABLE>
WRIGHT TOTAL RETURN BOND PORTFOLIO (WTRBP)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1995
===============================================================================
Face Coupon Maturity Market Current Yield To
Amount Description Rate Date Price Value Yield(1) Maturity(1)
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 50,000 Federal Farm Credit Bank 5.270% 2/01/99 $ 98.844 $ 49,422 5.33% 5.68%
50,000 Federal Home Loan Bank 7.780% 2/03/00 108.031 54,016 7.20% 5.56%
50,000 Tennessee Valley Authority 6.125% 7/15/03 100.187 50,093 6.11% 6.09%
50,000 U.S. Treasury Note 5.750% 8/15/03 101.203 50,602 5.68% 5.55%
50,000 Federal National Mortgage 7.490% 3/02/05 108.310 54,155 6.92% 6.28%
125,000 U.S. Treasury Note 5.875% 11/15/05 102.250 127,812 5.75% 5.57%
20,000 AT&T Corp. 7.750% 3/01/07 112.386 22,477 6.90% 6.20%
50,000 U.S. Treasury Bond 7.500% 11/15/16 117.250 58,625 6.40% 6.03%
----------
Total Investments (identified cost, $441,117) -- 86.9% $ 467,202 6.18% 5.81%
====== ======
Other Assets, less Liabilities -- 13.1% 70,480
----------
Net Assets -- 100.0% $ 537,682
==========
Average Maturity -- 9.4 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, 1995
- -------------------------------------------------------------------------------
ASSETS:
<S> <C>
Investments --
Identified cost.................... $ 441,117
Unrealized appreciation............ 26,085
---------
Total value (Note 1A)............ $ 467,202
Cash................................. 35,280
Interest receivable.................. 8,383
Deferred organizational costs (Note 1D) 5,153
Receivable from Investment Adviser... 27,941
---------
Total Assets....................... $ 543,959
---------
LIABILITIES:
Payable for Fund shares reacquired... $ 402
Trustees fees payable................ 335
Custodian fee payable (Note 3)....... 1,300
Accrued expenses..................... 4,240
---------
Total Liabilities.................. $ 6,277
---------
NET ASSETS.............................. $ 537,682
=========
NET ASSETS CONSIST OF:
Paid-in capital......................... $ 526,131
Accumulated net realized loss on investment
transactions......................... (14,534)
Unrealized appreciation of investments.. 26,085
---------
Net assets applicable to outstanding
shares ............................. $ 537,682
=========
SHARES OF BENEFICIAL INTEREST
OUTSTANDING.......................... 54,676
=========
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST............... $ 9.83
=========
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1995
- -------------------------------------------------------------------------------
INVESTMENT INCOME:
Income --
<S> <C>
Interest............................. $ 27,053
---------
Expenses --
Investment Adviser fee (Note 3)...... $ 2,034
Administrator fee (Note 3)........... 226
Amortization of organization expense
(Note 1D).......................... 1,738
Compensation of Trustees not affiliated with
the Investment Adviser or Administrator 2,282
Custodian fee........................ 19,138
Audit services....................... 6,753
Legal................................ 2,223
Transfer and dividend disbursing agent fees 725
Printing............................. 1,010
Registration costs................... 50
Miscellaneous........................ 1,683
---------
Total expenses................... $ 37,862
---------
Deduct --
Reduction of Custodian fee........... $ 1,655
Reduction of Investment Adviser fee.. 2,034
Reduction of Administrator fee....... 226
Allocation of expense to the Investment
Adviser............................. 29,886
---------
Total deducted................... $ 33,801
---------
Net expenses..................... $ 4,061
---------
Net investment income.......... $ 22,992
---------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized loss on investment
transactions .......................... $ (13,757)
Change in unrealized appreciation of
investments ........................... 65,400
---------
Net realized and unrealized gain..... $ 51,643
---------
Net increase in net assets from
operations.......................... $ 74,635
=========
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT TOTAL RETURN BOND PORTFOLIO
===============================================================================
Year Year
Ended Ended
STATEMENTS OF CHANGES IN NET ASSETS December 31, 1995 December 31, 1994
- -----------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From operations --
<S> <C> <C>
Net investment income........................................ $ 22,992 $ 18,595
Net realized loss on investment transactions................. (13,757) (777)
Change in unrealized appreciation of investments............. 65,400 (38,541)
---------- ----------
Increase (decrease) in net assets from operations.......... $ 74,635 $ (20,723)
Distributions to shareholders from net investment income (Note 2) (22,992) (18,595)
Net increase (decrease) from fund share transactions (Note 4).. (34,344) 392,475
---------- ----------
Net increase in net assets................................. $ 17,299 $ 353,157
NET ASSETS:
At beginning of year........................................... 520,383 167,226
---------- ----------
At end of year................................................. $ 537,682 $ 520,383
========== ==========
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT TOTAL RETURN BOND PORTFOLIO
===============================================================================
For the Period from
Year Year Dec. 7, 1993
Ended Ended (start of business) to
FINANCIAL HIGHLIGHTS Dec. 31, 1995 Dec. 31, 1994 Dec. 31, 1993(2)
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of year.....................$ 8.840 $ 9.930 $ 10.000
---------- ---------- ----------
Income from Investment Operations:
Net investment income(1)............................$ 0.469 $ 0.398 $ 0.019
Net realized and unrealized gain (loss) on investments 0.990 (1.090) (0.070)
---------- ---------- ----------
Total income (loss) from investment operations....$ 1.459 $ (0.692) $ (0.051)
---------- ---------- ----------
Less Distributions to Shareholders:
From net investment income..........................$ (0.469) $ (0.398) $ (0.019)
---------- ---------- ----------
Net asset value, end of year...........................$ 9.830 $ 8.840 $ 9.930
=========== =========== ===========
Total Return(3)........................................ 16.9% (7.1%) (0.5%)
Ratios/Supplemental Data:
Net assets, end of year (000 omitted)...............$ 538 $ 520 $ 167
Ratio of net expenses to average net assets........ 1.26%(5) 0.90% 0.70%(4)
Ratio of net investment income to average net assets 5.09% 4.49% 2.50%(4)
Portfolio Turnover Rate............................. 186% 23% 0%
<FN>
(1) During 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.......................$ (0.187) $ (0.143)
=========== ===========
Ratios (As a percentage of average net assets):
Expenses.......................................... 8.38% 7.00%
=========== ===========
Net investment loss............................... (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 year ended December 31, 1995, custodian fees were reduced by
credits resulting from cash balances the Trust maintained with the custodian
(Note 3). 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>
<TABLE>
WRIGHT SELECTED BLUE CHIP PORTFOLIO (WSBCP)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1995
==============================================================================
Shares Value
- ------------------------------------------------------------------------------
EQUITY INTERESTS -- 87.0%
APPAREL -- 4.3%
<S> <C> <C>
Reebok International Ltd..... 1,500 $ 42,375
Russell Corporation.......... 400 11,100
VF Corp...................... 800 42,200
-----------
$ 95,675
-----------
AUTOMOTIVE -- 4.9%
Eaton Corporation............ 700 $ 37,538
Echlin Inc................... 1,100 40,150
Modine Manufacturing Co...... 1,300 31,200
-----------
$ 108,888
-----------
BEVERAGES -- 1.7%
Anheuser-Busch Companies..... 300 $ 20,062
Brown-Forman Corp............ 500 18,250
-----------
$ 38,312
-----------
CHEMICALS -- 6.5%
Clorox Company............... 300 $ 21,488
Lubrizol Corporation (The)... 400 11,150
Morton International Inc..... 1,000 35,875
PPG Industries, Incorporated. 900 41,175
Rohm & Haas Company.......... 300 19,312
Sherwin-Williams Company..... 400 16,300
-----------
$ 145,300
-----------
CONSTRUCTION -- 1.7%
Fleetwood Enterprises, Inc... 1,500 $ 38,625
-----------
DIVERSIFIED -- 5.4%
Crane Co..................... 1,200 $ 44,250
Johnson Controls, Inc........ 300 20,625
National Service Industries.. 500 16,188
DIVERSIFIED -- CONTINUED
Rockwell International Corp.. 400 21,150
Standex International Corp... 600 19,650
-----------
$ 121,863
-----------
DRUGS, COSMETICS & HEALTH CARE -- 5.9%
Alberto Culver Company....... 1,200 $ 36,600
Bard (C.R.) Inc.............. 500 16,125
Becton Dickinson & Co........ 400 30,000
Bristol-Myers Squibb Co...... 300 25,763
Lilly (Eli) & Co............. 400 22,500
-----------
$ 130,988
-----------
ELECTRONICS -- 4.4%
Hewlett-Packard Co........... 400 $ 33,500
Raytheon Company............. 600 28,350
Sun Microsystems, Inc.*...... 800 36,500
-----------
$ 98,350
-----------
FINANCIAL: BANKS -- 9.6%
Bancorp Hawaii, Inc.......... 1,100 $ 39,463
Commerce Bancshares.......... 441 16,868
Compass Bancshares, Inc...... 700 23,100
First Hawaiian, Inc*......... 1,100 33,000
First Virginia Banks, Inc.... 400 16,700
Southern National Corp....... 700 18,375
Southtrust Corp.............. 900 23,062
Star Banc Corp............... 400 23,800
Suntrust Banks, Inc.......... 300 20,550
-----------
$ 214,918
-----------
FINANCIAL: REAL ESTATE & OTHER -- 6.2%
AFLAC Incorporated........... 400 $ 17,350
Edwards A.G. Inc............. 800 19,100
<PAGE>
FINANCIAL: REAL ESTATE & OTHER -- CONTINUED
First Colony Corp............ 1,500 38,063
Jefferson Pilot Corporation.. 450 20,925
MBIA, Inc.................... 300 22,500
Raymond James Financial...... 1,000 21,125
-----------
$ 139,063
-----------
FOOD -- 2.5%
Dean Foods Company........... 400 $ 11,000
Universal Foods Corp......... 1,100 44,138
-----------
$ 55,138
-----------
MACHINERY & EQUIPMENT -- 1.8%
Briggs & Stratton Corp....... 600 $ 26,025
Dover Corporation............ 400 14,750
-----------
$ 40,775
-----------
METAL PRODUCTS MANUFACTURERS -- 3.8%
CLARCOR...................... 2,000 $ 40,750
Kaydon Corporation........... 800 24,300
Stanley Works (The).......... 400 20,600
-----------
$ 85,650
-----------
OIL, GAS, COAL & RELATED SERVICES -- 0.7%
Exxon Corporation............ 200 $ 16,025
-----------
PRINTING & PUBLISHING -- 7.0%
Banta Corporation............ 400 $ 17,600
Ennis Business Forms......... 1,100 13,475
Gannett Company, Inc......... 300 18,412
Harland (John H.) Co......... 1,600 33,400
Lee Enterprises.............. 1,000 23,000
Reynolds & Reynolds.......... 600 23,325
Wallace Computer Services.... 500 27,312
-----------
$ 156,524
-----------
RECREATION -- 3.9%
International Dairy Queen*... 1,700 $ 38,675
Luby's Cafeterias Inc........ 700 15,575
Sturm Ruger & Company, Inc... 1,200 32,850
-----------
$ 87,100
-----------
RETAILERS -- 4.4%
Claire's Stores Inc.......... 2,200 $ 38,775
Dress Barn (The)*............ 1,400 13,825
May Department Stores........ 500 21,125
Ross Stores, Inc............. 1,300 24,862
-----------
$ 98,587
-----------
UTILITIES - COMMUNICATION -- 2.9%
Ameritech Corporation........ 400 $ 23,600
Lincoln Telecommunications... 1,000 21,125
Sprint Corporation........... 500 19,937
-----------
$ 64,662
-----------
UTILITIES - ELECTRIC POWER -- 5.8%
DQE Inc...................... 900 $ 27,675
Duke Power Company........... 900 42,638
Nipsco Industries............ 1,100 42,075
Wisconsin Energy............. 600 18,375
-----------
$ 130,763
-----------
<PAGE>
MISCELLANEOUS -- 3.6%
Dionex Corporation*.......... 400 $ 22,700
Marshall Industries*......... 800 25,700
Stanhome Inc................. 1,100 32,038
-----------
$ 80,438
-----------
TOTAL EQUITY INTERESTS -- 87.0%
(identified cost, $1,673,532) $ 1,947,644
OTHER ASSETS
LESS LIABILITIES -- 13.0% 291,186
-----------
NET ASSETS -- 100.0% $ 2,238,830
============
<FN>
* Non-income-producing security.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT SELECTED BLUE CHIP PORTFOLIO
===============================================================================
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1995
- -------------------------------------------------------------------------------
ASSETS:
Investments --
<S> <C>
Identified cost.................... $1,673,532
Unrealized appreciation............ 274,112
---------
Total value (Note 1A)............ $1,947,644
Cash................................. 282,483
Dividends receivable................. 3,518
Deferred organizational costs (Note 1D) 5,287
Receivable from Investment Adviser... 7,494
---------
Total Assets....................... $2,246,426
---------
LIABILITIES:
Payable for Fund shares reacquired... $ 1,722
Trustees fees payable................ 335
Custodian fee payable (Note 3)....... 1,300
Accrued expenses..................... 4,239
---------
Total Liabilities.................. $ 7,596
---------
NET ASSETS.............................. $2,238,830
==========
NET ASSETS CONSIST OF:
Paid-in capital......................... $1,955,545
Undistributed net investment income..... 9,173
Unrealized appreciation of investments.. 274,112
---------
Net assets applicable to outstanding
shares.............................. $2,238,830
==========
SHARES OF BENEFICIAL INTEREST
OUTSTANDING.......................... 196,276
==========
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST............... $11.41
==========
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1995
- ------------------------------------------------------------------------------
INVESTMENT INCOME:
Income --
<S> <C>
Dividends............................ $ 36,987
---------
Expenses --
Investment Adviser fee (Note 3)...... $ 11,367
Administrator fee (Note 3)........... 874
Amortization of organization expense
(Note 1D).......................... 1,748
Compensation of Trustees not affiliated with
the Investment Adviser or Administrator 2,282
Custodian fee (Note 3)............... 20,193
Audit................................ 5,450
Legal................................ 2,228
Transfer and dividend disbursing agent fees 725
Printing............................. 1,010
Registration costs................... 62
Interest expense..................... 56
Miscellaneous........................ 1,661
---------
Total expenses................... $ 47,656
---------
Deduct --
Reduction of Custodian fee........... $ 7,796
Reduction of Investment Adviser fee.. 11,367
Reduction of Administrator fee....... 874
Allocation of expense to the Investment
Adviser............................. 7,494
---------
Total deducted................... $ 27,531
---------
Net expenses..................... $ 20,125
---------
Net investment income.......... $ 16,862
---------
REALIZED AND UNREALIZED GAIN:
Net realized gain on investment
transactions .......................... $ 79,060
Change in unrealized appreciation of
investments............................ 300,016
---------
Net realized and unrealized gain..... $ 379,076
---------
Net increase in net assets from
operations ......................... $ 395,938
==========
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT SELECTED BLUE CHIP PORTFOLIO
===============================================================================
For the Period from
Year January 6, 1994
Ended (start of business) to
STATEMENTS OF CHANGES IN NET ASSETS December 31, 1995 December 31, 1994
- -------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From operations --
<S> <C> <C>
Net investment income........................................ $ 16,862 $ 9,806
Net realized gain (loss) on investment transactions.......... 79,060 (24,751)
Change in unrealized appreciation of investments............. 300,016 (25,904)
---------- ----------
Increase (decrease) in net assets from operations.......... $ 395,938 $ (40,849)
Distributions to shareholders from net investment income....... (13,333) (9,294)
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 1E).................................. 3,662 4,501
Net increase from fund share transactions (exclusive of amounts
allocated to net investment income) (Note 4)................. 454,382 1,498,107
---------- ----------
Net increase in net assets................................. $ 786,365 $1,452,465
NET ASSETS:
At beginning of year........................................... 1,452,465 --
---------- ----------
At end of year................................................. $2,238,830 $1,452,465
========== ===========
UNDISTRIBUTED NET INVESTMENT INCOME
INCLUDED IN NET ASSETS......................................... $ 9,173 $ 5,013
========== ===========
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT SELECTED BLUE CHIP PORTFOLIO
==============================================================================
For the Period from
Year January 6, 1994
Ended (start of business) to
FINANCIAL HIGHLIGHTS December 31, 1995 December 31, 1994
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value, beginning of year................................ $ 9.320 $ 10.000
---------- ----------
Income from Investment Operations:
Net investment income(1)....................................... $ 0.100 $ 0.092
Net realized and unrealized gain (loss) on investments......... 2.345 (0.712)
---------- ----------
Total income (loss) from investment operations............... $ 2.445 $ (0.620)
---------- ----------
Less Distributions to Shareholders:
From net investment income..................................... (0.070) (0.060)
From net realized gain on investment transactions.............. (0.285) --
---------- ----------
Total distributions.......................................... $ (0.355) $ (0.060)
---------- ----------
Net asset value, end of year...................................... $ 11.410 $ 9.320
=========== ===========
Total Return(3)................................................... 26.3% (6.2%)
Ratios/Supplemental Data:
Net assets, end of year (000 omitted).......................... $2,239 $1,452
Ratio of net expenses to average net assets.................... 1.60% (4) 1.15% (2)
Ratio of net investment income to average net assets........... 0.96% 1.16% (2)
Portfolio Turnover Rate........................................ 64% 74%
<FN>
(1) During each of the periods presented, the Investment Adviser and the
Administrator reduced their fees, and the Investment Adviser was allocated a
portion of 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.................................... $ (0.017) $ (0.078)
=========== ===========
Ratios (As a percentage of average net assets):
Expenses....................................................... 2.72% 3.30% (2)
=========== ===========
Net investment loss............................................ (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 year ended December 31, 1995, custodian fees were reduced by
credits resulting from cash balances the Trust maintained with the custodian
(Note 3). 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%.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT INTERNATIONAL BLUE CHIP PORTFOLIO (WIBCP)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1995
==============================================================================
Shares Value
- ------------------------------------------------------------------------------
EQUITY INTERESTS -- 86.5%
AUSTRALIA --3.2%
<S> <C> <C>
Broken Hill Proprietary (ADR) 350 $ 19,775
F.H. Faulding (ADR).......... 1,320 23,566
-----------
$ 43,341
-----------
BELGIUM --2.0%
Colruyt SA *................. 100 $ 27,013
-----------
CANADA -- 1.2%
Corel Systems Corp*.......... 1,300 $ 16,900
-----------
DENMARK -- 1.1%
ISS Int'l. Service Systems*.. 640 $ 14,383
-----------
FRANCE -- 4.4%
L'Oreal (ADR)................ 360 $ 19,302
Legrand SA *................. 130 20,030
LVMH Moet-Hennessy
Louis Vuitton............. 500 20,938
-----------
$ 60,270
-----------
GERMANY -- 1.5%
Bayerische Motoren Werke*.... 40 $ 20,467
-----------
HONG KONG -- 7.2%
Hang Lung Devel. Co. (ADR)... 2,700 $ 21,476
Hong Kong Aircraft Engineering* 5,600 14,482
Hong Kong & China Gas Co. (ADR) 12,238 19,706
Hong Kong Electric Hold. (ADR) 5,700 18,688
Swire Pacific Limited (ADR).. 3,100 24,056
-----------
$ 98,408
-----------
IRELAND -- 1.8%
Greencore PLC*............... 2,750 $ 24,661
-----------
ITALY -- 1.4%
Sirti SpA*................... 3,500 $ 19,678
-----------
JAPAN -- 9.8%
Kurita Water Industries Ltd.* 1,000 26,596
Nintendo Corp. Ltd. (ADR)*... 2,800 26,635
Santen Pharmaceutical Co., Ltd.* 1,000 22,727
Seven Eleven Japan........... 330 23,290
Yurtec Corporation *......... 2,000 35,010
-----------
$ 134,258
-----------
MALAYSIA -- 4.1%
Amalgamated Industrial Steel* 19,200 $ 14,292
Genting Berhad (ADR)......... 2,000 16,700
Perlis Plantations Berhad (ADR) 8,000 25,049
-----------
$ 56,041
-----------
MEXICO -- 3.4%
Cifra SA..................... 9,400 $ 9,880
Kimberly Clark de Mexico..... 700 21,169
Telefonos de Mexico.......... 500 15,938
-----------
$ 46,987
-----------
NETHERLANDS -- 10.4%
Elsevier (ADR)............... 750 $ 19,969
Koninklijke Ahold (ADR)*..... 800 32,900
NV Verenigd Bezit VNU*....... 250 34,248
Unilever NV.................. 200 28,150
Wolters Kluwer (ADR)*........ 280 26,516
-----------
$ 141,783
-----------
NEW ZEALAND -- 1.5%
Wilson & Horton Limited *.... 3,300 $ 19,731
-----------
SINGAPORE -- 1.6%
Singapore Press Holdings *... 1,200 $ 21,211
-----------
<PAGE>
SOUTH AFRICA -- 2.2%
South Arican Breweries Limited 800 $ 29,296
-----------
SPAIN -- 3.7%
Empresa Nacional de Electricidad
(ADR)..................... 500 $ 28,625
Repsol S.A. *................ 650 21,248
-----------
$ 49,873
-----------
SWEDEN -- 5.0%
Astra AB..................... 1,240 $ 49,124
H & M Hennes & Mauritz AB*... 350 19,507
-----------
$ 68,631
-----------
SWITZERLAND -- 3.6%
Nestles (ADR)................ 400 $ 22,179
Sandoz (ADR)................. 600 27,532
-----------
$ 49,711
-----------
UNITED KINGDOM -- 17.4%
Cable & Wireless (ADR)....... 1,030 $ 21,759
Christian Salvesen (ADR) *... 1,130 23,202
Farnell Electronics*......... 2,000 22,316
Halma*....................... 9,866 26,813
Kwik Save Group *............ 2,800 21,742
Marks & Spencer (ADR)........ 700 29,344
Polypipe PLC *............... 8,000 21,866
Scapa Group PLC *............ 6,000 20,686
Tesco (ADR).................. 4,400 20,289
Wolseley *................... 4,200 29,417
-----------
$ 237,434
-----------
TOTAL EQUITY INTERESTS -- 86.5%
(identified cost, $1,121,967) $ 1,180,077
OTHER ASSETS
LESS LIABILITIES -- 13.5% 184,794
-----------
NET ASSETS -- 100.0% $ 1,364,871
===========
<FN>
* Non-income-producing security.
ADR - American Depositary Receipt
</FN>
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT INTERNATIONAL BLUE CHIP PORTFOLIO (WIBCP)
===============================================================================
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1995
- -------------------------------------------------------------------------------
ASSETS:
Investments --
<S> <C>
Identified cost.................... $1,121,967
Unrealized appreciation............ 58,110
---------
Total value (Note 1A)............ $1,180,077
Cash................................. 194,138
Dividends receivable................. 2,055
Deferred organizational costs (Note 1D) 5,282
Receivable from Investment Adviser... 10,726
Receivable for foreign taxes withheld 110
---------
Total assets....................... $1,392,388
---------
LIABILITIES:
Payable for Fund shares reacquired... $ 1,039
Payable for investments purchased.... 20,603
Trustees fees payable................ 335
Custodian fee payable (Note 3)....... 1,300
Accrued expenses..................... 4,240
---------
Total liabilities.................. $ 27,517
---------
NET ASSETS.............................. $1,364,871
==========
NET ASSETS CONSIST OF:
Paid-in capital......................... $1,307,506
Accumulated net realized loss on investment
transactions......................... (3,656)
Undistributed net investment income..... 2,946
Unrealized appreciation of investments and
foreign currency..................... 58,075
---------
Net assets applicable to outstanding
shares............................. $1,364,871
==========
SHARES OF BENEFICIAL INTEREST
OUTSTANDING.......................... 135,715
==========
NET ASSET VALUE, OFFERING PRICE,
AND REDEMPTION PRICE PER SHARE
OF BENEFICIAL INTEREST............... $10.06
==========
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1995
- -------------------------------------------------------------------------------
INVESTMENT INCOME:
Income --
<S> <C>
Dividends............................ $ 26,086
Less: Foreign taxes.................. (2,893)
---------
Gross income....................... $ 23,193
---------
Expenses --
Investment Adviser fee (Note 3)...... $ 9,690
Administrator fee (Note 3)........... 606
Amortization of organization expense
(Note 1D).......................... 1,749
Compensation of Trustees not affiliated with
the Investment Adviser or Administrator 2,282
Custodian fee (Note 3)............... 25,149
Audit................................ 5,450
Legal................................ 2,226
Transfer and dividend disbursing agent fees 725
Printing............................. 1,010
Registration costs................... 94
Interest expense..................... 50
Miscellaneous........................ 1,659
---------
Total expenses................... $ 50,690
---------
Deduct --
Reduction of Custodian fee........... $ 5,143
Reduction of Investment Adviser fee.. 9,690
Reduction of Administrator fee....... 606
Allocation of expense to the Investment
Adviser............................. 12,813
---------
Total deducted................... $ 28,252
---------
Net expenses..................... $ 22,438
---------
Net investment income.......... $ 755
---------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized loss on investment
transactions......................... $ (3,923)
Change in unrealized appreciation of investments
and foreign currency................. 130,826
---------
Net realized and unrealized gain..... $ 126,903
---------
Net increase in net assets from
operations.......................... $ 127,658
==========
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT INTERNATIONAL BLUE CHIP PORTFOLIO
===============================================================================
For the Period from
Year January 6, 1994
Ended (start of business) to
STATEMENTS OF CHANGES IN NET ASSETS December 31, 1995 December 31, 1994
- -------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From operations --
<S> <C> <C>
Net investment income........................................ $ 755 $ 1,299
Net realized loss on investments............................. (3,923) --
Change in unrealized appreciation of investments and
foreign currency........................................... 130,826 (72,751)
---------- ----------
Increase (decrease) in net assets from operations.......... $ 127,658 $ (71,452)
Undistributed net investment income included in price of shares
sold and redeemed (Note 1E).................................. (344) 2,907
Distributions to shareholders from net investment income....... (2,477) (673)
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)......... 15,368 1,298,164
---------- ----------
Net increase in net assets................................. $ 135,925 $1,228,946
NET ASSETS:
At beginning of year........................................... 1,228,946 --
---------- ----------
At end of year................................................. $1,364,871 $1,228,946
=========== ===========
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET
INVESTMENT INCOME INCLUDED IN NET ASSETS....................... $ (2,946) $ 3,533
=========== ===========
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
WRIGHT INTERNATIONAL BLUE CHIP PORTFOLIO
===============================================================================
For the Period from
Year January 6, 1994
Ended (start of business) to
FINANCIAL HIGHLIGHTS December 31, 1995 December 31, 1994
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value, beginning of year................................ $ 9.140 $ 10.000
---------- ----------
Income from Investment Operations:
Net investment income(1)....................................... $ 0.003 $ 0.031
Net realized and unrealized gain (loss) on investments......... 0.967 (0.886)
---------- ----------
Total income (loss) from investment operations............... $ 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 year...................................... $ 10.060 $ 9.140
=========== ===========
Total Return(3)................................................... 10.6% (8.1%)
Ratios/Supplemental Data:
Net assets, end of year (000 omitted).......................... $ 1,365 $ 1,229
Ratio of net expenses to average net assets.................... 2.28% (4) 1.80% (2)
Ratio of net investment income to average net assets........... 0.06% 0.19% (2)
Portfolio Turnover Rate........................................ 31% 0%
<FN>
(1) During each of the periods presented, the Investment Adviser and the
Administrator reduced their fees, and the Investment Adviser was allocated a
portion of 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.................................... $ (0.920) $ (0.434)
=========== ===========
Ratios (As a percentage of average net assets):
Expenses....................................................... 4.18% 4.65% (2)
=========== ===========
Net investment loss............................................ (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 year ended December 31, 1995, custodian fees were reduced by
credits resulting from cash balances the Trust maintained with the custodian
(Note 3). 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%.
</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 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. 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.
E. Equalization -- The Portfolios follow the accounting practice known as
equalization by which a portion of the proceeds from sales and costs of
redemptions of Portfolio shares, equivalent on a per-share basis to the
amount of undistributed net investment income on the date of the
transaction, is credited or charged to undistributed net investment
income. As a result, undistributed net investment income per share is
unaffected by sales or redemptions of Portfolio shares.
F. 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.
G. 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. 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.
<PAGE>
During the period ended December 31, 1995, the following amounts were
reclassified due to differences between book and tax accounting created
primarily by the unavailability of a tax benefit for operating losses, deferral
of certain losses for tax purposes, and recharacterization of short-term gains
between net investment income and net realized capital gains.
<TABLE>
Accumulated Undistributed Net Undistributed
Paid-in Realized Gain (Loss) on Investment Net Investment
Capital and Foreign Currency Transactions Income (Loss)
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
WSBCP $3,056 ($25) ($3,031)
WIBCP ($1,746) $267 $1,479
- -----------------------------------------------------------------------------------------------------
</TABLE>
These changes had no effect on the net assets per share.
(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 year ended December 31, 1995, the effective annual rate
for advisory and administration charges for each Portfolio was as follows:
<TABLE>
WNTBP WTRBP WSBCP WIBCP
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment Advisory 0.45% 0.45% 0.65% 0.80%
Administration 0.05% 0.05% 0.05% 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 $ 1,563 $ 2,034 $11,367 $ 9,690
Allocation of expense to the Investment Adviser 29,915 29,886 7,494 12,813
Reduction of Administrator fees 174 226 874 606
- -----------------------------------------------------------------------------------------------------------
</TABLE>
The Trust has engaged Investors Bank & Trust Company (IBT) to serve as
custodian and transfer agent of the Trust. Prior to November 10, 1995, IBT was
an affiliate of Eaton Vance. 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. All significant credit balances are reported as a
reduction of expenses in the Statement of Operations. 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>
Year Ended Year Ended
December 31, 1995 December 31, 1994
----------------- -----------------
Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------------------
Wright Near Term Bond Portfolio(1) --
<S> <C> <C> <C> <C>
Sales.................................. 14,521 $ 141,824 97,510 $ 945,206
Issued to shareholders in payment
of distributions declared............ 1,644 15,922 1,542 14,658
Redemptions............................ (31,513) (302,860) (50,644) (484,260)
-------- ---------- -------- ----------
Net increase (decrease)............ (15,348) $ (145,114) 48,408 $ 475,604
========= =========== ========= ===========
Wright Total Return Bond Portfolio --
Sales.................................. 18,926 $ 183,434 81,960 $ 762,268
Issued to shareholders in payment
of distributions declared............ 2,433 22,812 2,069 18,830
Redemptions............................ (25,529) (240,590) (42,018) (388,623)
-------- ---------- -------- ----------
Net increase (decrease)............ (4,170) $ (34,344) 42,011 $ 392,475
========= =========== ========= ===========
Wright Selected Blue Chip Portfolio(1) --
Sales.................................. 74,735 $ 808,667 160,250 $ 1,538,743
Issued to shareholders in payment
of distributions declared............ 5,957 67,259 1,018 9,263
Redemptions............................ (40,303) (421,544) (5,381) (49,899)
-------- ---------- -------- ----------
Net increase....................... 40,389 $ 454,382 155,887 $1,498,107
========= =========== ========= ===========
</TABLE>
<PAGE>
<TABLE>
Year Ended Year Ended
December 31, 1995 December 31, 1994
----------------- -----------------
Shares Amount Shares Amount
- ---------------------------------------------------------------------------------------------------------------
Wright International Blue Chip Portfolio(1) --
<S> <C> <C> <C> <C>
Sales.................................. 46,535 $ 453,824 143,858 $ 1,388,265
Issued to shareholders in payment
of distributions declared............ 678 6,757 74 671
Redemptions............................ (46,025) (445,213) (9,405) (90,772)
-------- ---------- -------- ----------
Net increase....................... 1,188 $ 15,368 134,527 $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 31,1995, were as follows:
<TABLE>
Wright Wright Wright Wright
Near Term Total Return Selected International
Bond Portfolio Bond Portfolio Blue Chip Portfolio Blue Chip Portfolio
- --------------------------------------------------------------------------------------------------------------
Purchases --
<S> <C> <C> <C> <C>
Non-U.S. Gov't Obligations.... $ -- $ 19,900 $ 1,114,038 $ 330,166
============= ============= ============= =============
U.S. Gov't Obligations........ $ 274,149 $ 726,428 $ -- $ --
============= ============= ============= =============
Sales --
Non-U.S. Gov't Obligations.... $ -- $ -- $ 972,260 $ 446,508
============= ============= ============= =============
U.S. Gov't Obligations........ $ 455,929 $ 834,141 $ -- $ --
============= ============= ============= =============
</TABLE>
<PAGE>
(6) FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES
The cost and unrealized appreciation (depreciation) in value of the
investments owned at December 31, 1995, 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................... $ 277,042 $ 441,152 $ 1,673,532 $ 1,121,967
============= ============= ============= =============
Gross unrealized appreciation.... $ 11,109 $ 26,050 $ 305,122 $ 133,522
Gross unrealized depreciation.... -- -- (31,010) (75,412)
------------ ------------ ------------ ------------
Net unrealized appreciation... $ 11,109 $ 26,050 $ 274,112 $ 58,110
============= ============= ============= =============
</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 year ended December 31, 1995.
<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, 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, 1995, the related
statements of operations for the year then ended, the statements of changes in
net assets for the years ended December 31, 1995 and 1994, and the financial
highlights for each of the years in the three-year period ended December 31,
1995. 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, 1995, 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, 1995, the results of their operations, the changes in their net assets, and
their financial highlights for the respective stated periods in conformity with
generally accepted accounting principles.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
February 2, 1996
<PAGE>
- -------------------------------------------------------------------------------
Description of art work on back cover of report
Solid blue box with the name of the Trust in the upper left hand corner of page.
- -------------------------------------------------------------------------------
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
INDEPENDENT AUDITORS
Deloitte & Touche LLP
125 Summer Street
Boston, Massachusetts 02110
This report is not authorized for use as an offer of sale or a
solicitation of an offer to buy shares of a mutual fund unless
accompanied or preceded by a Fund's current prospectus. Shares of
the Trust are only available to the separate accounts of insurance
companies
