WT MUTUAL FUND
MONEY MARKET PORTFOLIO
SHORT/INTERMEDIATE BOND PORTFOLIO
BROAD MARKET EQUITY PORTFOLIO
WT
MUTUAL FUND
[LOGO OMITTED]
SEMI-ANNUAL REPORT
DECEMBER 31, 1998
KW08 12/98
<PAGE>
WT
MUTUAL FUND
[LOGO OMITTED]
DEAR SHAREHOLDER:
The final half of 1998 was extraordinarily eventful for the capital markets
and your mutual fund. As your new President I am pleased to report that despite
much market turmoil your fund not only survived the storm but thrived as well.
The final half of 1998 started auspiciously as concerns over corporate earnings
sent both equity and bond markets tumbling in both July and August. However, two
interest rate reductions engineered by The Federal Reserve Bank helped to
alleviate these concerns. As the year came to a close it became more apparent
that economic growth was solid and inflation has remained subdued. Full year
1998 economic growth was about 3.9%, which along with the 3.9% growth in 1997,
was the fastest growth rate since 1984. Inflation, measured by the consumer
price index, was 1.6%, the lowest since 1986 and second lowest since 1964.
As reported elsewhere in this report your funds have achieved returns that
continue to be very gratifying. The WT Money Market Portfolio posted a return of
5.49% for the calendar year of 1998. By comparison, the average money market
fund as measured by Lipper, Inc. posted a return of 4.86%. Your fund ranked
among the top 2% of mutual funds in this category.
Your WT Short/Intermediate Bond Portfolio benefited from reduced interest
rates during the year and returned 8.10% for the year compared with an average
return of 6.60% for the appropriate Lipper, Inc. category. While this fund
underperformed the Lehman Intermediate Government/Corporate Index return of
8.44%, it nevertheless ranked among the top 7% of its peer universe last year.
The WT Broad Market Equity Portfolio return was 29.66% for the year,
compared with the Standard and Poors 500 Index return of 28.58%. The fund's
investment strategy of focusing on well positioned, well capitalized companies
has continued to provide dividends. Last year, according to Lipper, Inc., the
average growth oriented mutual fund rose by 22.86%. Your WT Broad Market Equity
Portfolio ranked among the top one-third of nearly 1000 funds in the Lipper,
Inc. growth equity category.
Future investment direction for your fund is being positively influenced by
the economic environment, it is your investment advisors intent to continue to
focus on companies with strong earnings and balance sheet fundamentals. This
strategy has a proven track record and will continue to be emphasized.
ECONOMIC OUTLOOK
The U.S. economy ended 1998 on a strong note with the Gross Domestic
Product exhibiting an annualized growth rate of 5.6% for the final quarter and a
3.9% rate for the entire year. Last year was the sixth consecutive year of
economic growth in the U.S. and the second longest expansion in the postwar
period fueled, for the most part, by consumer confidence and spending. The
unemployment rate is at its lowest point since 1970, inflation is low, and
consumer wealth and confidence have long been buoyed by the strength in stock
prices--we expect consumer spending to remain robust as a result of these
variables. The real questions for 1999 are whether there will be international
economic recovery or more turmoil and how this will affect the U.S. economy.
Internationally, the key areas to watch will be Japan and the rest of the
Pacific Basin, Russia, Europe, Brazil and Mexico. Yet, despite the uncertainties
that exist overseas, we expect the U.S. economy to exhibit growth in 1999 of
approximately 2.5%, inflation to hover unchanged at around 1.5%, corporate
profits to grow approximately 5-7% and year-end interest rates to be virtually
flat from the beginning of the year.
EQUITY OUTLOOK
After four exceptional years of equity performance, we are cautious in our
equity forecast for 1999. On the positive side, we see little chance of
inflation rising--such an event would quickly damage the equity market as low
interest rates have supported the historically high valuations. We also believe
that corporate earnings will still be positive due to 2.5% growth in the U.S.
economy, easier comparisons to 1998 in the basic materials and financial
sectors, and a better overseas economic environment for U.S. exporters. For the
year, we expect earnings growth to be in the 5 to 7% range. With a stable
interest rate environment, we expect the U.S. market to show a modest single
digit gain for 1999. We believe the best-performing stocks will be those that
can continue to generate top-line revenue growth in a low-growth economic
environment. Those companies that continue to cut costs without restricting
growth will also be rewarded.
1
<PAGE>
FIXED INCOME OUTLOOK
We do not foresee a great deal of interest rate movement in the bond market
during the coming year based on slower economic growth and benign inflation.
While there will be areas in our economy justifying higher rates, low
unemployment and a strong housing market, they will be offset by slow
international growth. The Federal Reserve could ease its monetary policy again
early in 1999 if economic growth is tepid, but by the end of the year, this
posture could change in the face of a better economic setting. Therefore, we
remain positive toward bonds at the outset of the year and would focus our
interest in high-quality, intermediate-term, 3 to 10 year, taxable or tax-free
issues. We expect to see another good year of supply in the municipal markets
but think any talk of tax reform could fall victim to the bitterness created
over the Presidential impeachment process.
Sincerely,
[/S/ Robert J. Christian]
Robert J. Christian
President
February 12, 1999
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
INVESTMENT RETURNS AND PRINCIPAL VALUES MAY FLUCTUATE SO THAT SHARE, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. AN INVESTMENT IN
THE FUND IS NEITHER INSURED NOR GUARANTEED BY WILMINGTON TRUST COMPANY (WTC) OR
ANY OTHER BANKING INSTITUTION, THE U.S. GOVERNMENT, THE FEDERAL DEPOSIT
INSURANCE CORPORATION (FDIC), THE FEDERAL RESERVE BOARD OR ANY OTHER AGENCY.
THERE CAN BE NO ASSURANCE THAT THE WT MONEY MARKET PORTFOLIO WILL BE ABLE TO
MAINTAIN A STABLE NET ASSET VALUE OF $1.00. RETURNS ARE HIGHER DUE TO WTC'S
MAINTENANCE OF THE FUND EXPENSES. THE STANDARD & POORS 500 INDEX AND THE LEHMAN
INTERMEDIATE GOVERNMENT/CORPORATE INDEX ARE UNMANAGED MARKET INDICES WITH NO
ASSOCIATED EXPENSES AND THEIR RETURNS ASSUME THE REINVESTMENT OF DIVIDENDS AND
INCOME. YOU CANNOT INVEST IN AN INDEX. THE RANKINGS OF LIPPER ANALYTICAL, INC.
(LIPPER, INC.) ARE BASED ON TOTAL RETURN, INCLUDING CHANGES IN PRINCIPAL VALUE,
REINVESTMENT OF DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS FOR THE STATED PERIOD.
PLEASE READ THE PROSPECTUS CAREFULLY BEFORE INVESTING. DISTRIBUTED BY PROVIDENT
DISTRIBUTORS, INC.
2
<PAGE>
WT MUTUAL FUND
FINANCIAL STATEMENTS
================================================================================
STATEMENTS OF ASSETS AND LIABILITIES
December 31, 1998 (Unaudited)
<TABLE>
<CAPTION>
MONEY MARKET SHORT/INTERMEDIATE BROAD MARKET
PORTFOLIO BOND PORTFOLIO EQUITY PORTFOLIO
-------------------------------------------------------
<S> <C> <C> <C>
ASSETS:
Investment in Series, at value (Note 2) .......... $ 408,057,404 $ 63,945,710 $ 117,583,377
Receivable for Portfolio shares sold ............. -- 34,254 67,113
Unamortized organization costs (Note 2) .......... 4,440 4,384 --
Other assets ..................................... 800 124 174
-----------------------------------------------------
Total assets ..................................... 408,062,644 63,984,472 117,650,664
-----------------------------------------------------
LIABILITIES:
Dividends payable ................................ 1,805,191 281,648 --
Payable for investment purchased in Series ....... -- 34,254 67,113
Accrued management fee (Note 4) .................. 7,238 1,081 1,923
Other accrued expenses ........................... 21,469 14,316 11,318
-----------------------------------------------------
Total liabilities ................................ 1,833,898 331,299 80,354
-----------------------------------------------------
NET ASSETS ....................................... $ 406,228,746 $ 63,653,173 $ 117,570,310
=====================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest .................... $ 4,062,329 $ 62,408 $ 58,553
Additional paid-in capital ....................... 402,170,582 61,949,030 87,578,372
Distribution in excess of net investment income .. -- -- (23,370)
Accumulated net realized gain (loss) on investment (4,165) 50,597 29,647
Net unrealized appreciation of investment ........ -- 1,591,138 29,927,108
-----------------------------------------------------
NET ASSETS ....................................... $ 406,228,746 $ 63,653,173 $ 117,570,310
-----------------------------------------------------
Shares of beneficial interest outstanding ........ 406,232,911 6,240,752 5,855,275
-----------------------------------------------------
NET ASSETS VALUE, offering and redemption price per
share (Net assets/Outstanding shares of beneficial
interest, $0.01 par value) ..................... $ 1.00 $ 10.20 $ 20.08
=====================================================
</TABLE>
The accompanying notes are an integral part of the financial statements.
3
<PAGE>
WT MUTUAL FUND
FINANCIAL STATEMENTS -- CONTINUED
================================================================================
STATEMENTS OF OPERATIONS
For the Six-Month Period Ended December 31, 1998 (Unaudited)
<TABLE>
<CAPTION>
MONEY MARKET SHORT/INTERMEDIATE BROAD MARKET
PORTFOLIO BOND PORTFOLIO EQUITY PORTFOLIO
-------------------------------------------------------
<S> <C> <C> <C>
INCOME:
Investment income from Series ....................... $ 9,583,540 $ 1,798,998 $ 814,190
Expenses from Series ................................ (280,012) (128,267) (395,460)
-------------------------------------------------------
Net investment income from Series ................... 9,303,528 1,670,731 418,730
-------------------------------------------------------
EXPENSES:
Administration fee (Note 4) ......................... 35,222 6,295 10,639
Transfer agent fee (Note 4) ......................... 12,651 9,810 9,486
Trustees' fees (Note 4) ............................. 2,391 2,391 2,391
Amortization of organizational expenses (Note 2)..... 3,435 3,435 --
Registration fees ................................... 3,998 2,016 2,718
Professional fees ................................... 9,868 3,697 2,844
Other ............................................... 4,557 1,288 1,672
-------------------------------------------------------
Total expenses ...................................... 72,122 28,932 29,750
-------------------------------------------------------
Net investment income ............................... 9,231,406 1,641,799 388,980
-------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investment transactions ......... -- 75,948 552,407
Net realized gain on future contracts ................ -- -- 49,174
Net change in unrealized appreciation of investments.. -- 1,161,237 9,633,542
-------------------------------------------------------
Net gain on investments .............................. -- 1,237,185 10,235,123
-------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.... $ 9,231,406 $ 2,878,984 $ 10,624,103
=======================================================
</TABLE>
The accompanying notes are an integral part of the financial statements.
4
<PAGE>
WT MUTUAL FUND
FINANCIAL STATEMENTS -- CONTINUED
================================================================================
STATEMENTS OF CHANGES IN NET ASSETS
For the Six-Month Period Ended December 31, 1998 (Unaudited)
<TABLE>
<CAPTION>
MONEY MARKET SHORT/INTERMEDIATE BROAD MARKET
PORTFOLIO BOND PORTFOLIO EQUITY PORTFOLIO
-------------------------------------------------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income ............................... $ 9,231,406 $ 1,641,799 $ 388,980
Net realized gain on investment transactions ........ -- 75,948 552,407
Net realized gain on future contracts ............... -- -- 49,174
Net change in unrealized appreciation of investments. -- 1,161,237 9,633,542
-------------------------------------------------------
Net increase in net assets resulting from operations. 9,231,406 2,878,984 10,624,103
-------------------------------------------------------
Distributions to shareholders:
Net investment income ............................... (9,231,406) (1,641,799) (829,875)
Net realized gain ................................... -- (2,458,712) (1,926,454)
-------------------------------------------------------
Total distributions ................................... (9,231,406) (4,100,511) (2,756,329)
-------------------------------------------------------
Portfolio share transactions (a):
Receipt from shares sold ............................ 1,209,046,785 2,532,984 6,287,137
Receipt from shares issued on reinvestment of
distributions ..................................... 8,557,707 4,069,908 2,752,234
Shares redeemed ..................................... (1,051,734,723) (2,525,621) (9,388,574)
-------------------------------------------------------
Net increase (decrease) in net assets from Fund
share transactions .................................. 165,869,769 4,077,271 (349,203)
-------------------------------------------------------
Total increase in net assets .......................... 165,869,769 2,855,744 7,518,571
NET ASSETS:
Beginning of period ................................. 240,358,977 60,797,429 110,051,739
-------------------------------------------------------
End of period ....................................... $ 406,228,746 $ 63,653,173 $ 117,570,310
=======================================================
(A) TRANSACTIONS IN CAPITAL STOCK WERE:
Shares sold ......................................... 1,209,046,785 240,427 345,055
Shares issued on reinvestment of distributions ...... 8,557,707 392,969 145,236
Shares redeemed ..................................... (1,051,734,723) (240,271) (512,440)
-------------------------------------------------------
Net increase in shares .............................. 165,869,769 393,125 (22,149)
Shares outstanding - Beginning balance .............. 240,363,142 5,847,627 5,877,424
-------------------------------------------------------
Shares outstanding - Ending balance ................. 406,232,911 6,240,752 5,855,275
=======================================================
</TABLE>
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
WT MUTUAL FUND
FINANCIAL STATEMENTS -- CONTINUED
================================================================================
STATEMENTS OF CHANGES IN NET ASSETS
For the Fiscal Year Ended June 30, 1998
<TABLE>
<CAPTION>
MONEY MARKET SHORT/INTERMEDIATE BROAD MARKET
PORTFOLIO BOND PORTFOLIO EQUITY PORTFOLIO
-------------------------------------------------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income ............................... $ 26,769,862 $ 8,125,015 $ 806,025
Net realized gain (loss) on investment transactions.. (2,894) 3,219,708 13,803,874
Net realized loss on call options written ........... -- -- (184,913)
Net realized gain on future contracts ............... -- -- 325,474
Net change in unrealized appreciation
of investments .................................... -- 279,498 10,913,269
-------------------------------------------------------
Net increase in net assets resulting from operations. 26,766,968 11,624,221 25,663,729
-------------------------------------------------------
Distributions to shareholders:
Net investment income ............................... (26,769,862) (8,125,015) (697,911)
In excess of net investment income .................. -- (10,992) --
Net realized gain ................................... -- (600,992) (27,817,168)
-------------------------------------------------------
Total distributions ................................... (26,769,862) (8,736,999) (28,515,079)
-------------------------------------------------------
Portfolio share transactions (a):
Receipt from shares sold ............................ 2,802,359,254 144,376,638 14,765,563
Shares issued on reinvestment of
distributions ..................................... 27,192,469 8,492,881 28,253,479
Shares redeemed ..................................... (3,004,474,838) (203,273,352) (18,878,694)
-------------------------------------------------------
Net increase (decrease) in net assets from Fund
share transactions .................................. (174,923,115) (50,403,833) 24,140,348
-------------------------------------------------------
Total increase (decrease) in net assets ............... (174,926,009) (47,516,611) 21,288,998
NET ASSETS:
Beginning of year ................................... 415,284,986 108,314,040 88,762,741
-------------------------------------------------------
End of year ......................................... $ 240,358,977 $ 60,797,429 $ 110,051,739
=======================================================
(A) TRANSACTIONS IN CAPITAL STOCK WERE:*
Shares sold ........................................... 2,802,359,254 13,964,556 799,581
Shares issued on reinvestment of distributions ........ 27,192,469 821,217 1,809,960
Shares redeemed ....................................... (3,004,474,838) (19,605,986) (1,050,386)
-------------------------------------------------------
Net increase (decrease) in shares ..................... (174,923,115) (4,820,213) 1,559,155
Shares outstanding - Beginning balance ................ 415,286,257 10,667,840 4,318,269
-------------------------------------------------------
Shares outstanding - Ending balance ................... 240,363,142 5,847,627 5,877,424
=======================================================
<FN>
* Transactions in capital stock for the Short/Intermediate Bond Portfolio has
been restated to reflect a 1 for 5 reverse stock split which occurred on
September 25, 1997.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
6
<PAGE>
WT MUTUAL FUND
FINANCIAL HIGHLIGHTS
================================================================================
The following tables include selected data for a share outstanding throughout
each period and other performance information derived from the financial
statements.
<TABLE>
<CAPTION>
FOR THE SIX-MONTH FOR THE PERIOD
PERIOD ENDED FOR THE FISCAL FOR THE FISCAL FOR THE FISCAL JULY 28, 1994(DAGGER)
DECEMBER 31, 1998 YEAR ENDED YEAR ENDED YEAR ENDED THROUGH
(UNAUDITED) JUNE 30, 1998 JUNE 30, 1997 JUNE 30, 1996 JUNE 30, 1995
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
MONEY MARKET PORTFOLIO
NET ASSET VALUE - BEGINNING OF PERIOD ..... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------------------------------------------------------------------------------
INVESTMENT OPERATIONS:
Net investment income ..................... 0.03 0.05 0.05 0.05 0.05
----------------------------------------------------------------------------------
DISTRIBUTIONS:
From net investment income ................ (0.03) (0.05) (0.05) (0.05) (0.05)
----------------------------------------------------------------------------------
NET ASSET VALUE - END OF PERIOD ........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
==================================================================================
TOTAL RETURN .............................. 2.68%1 5.61% 5.43% 5.61% 5.04%1
RATIOS (TO AVERAGE NET ASSETS)/
SUPPLEMENTAL DATA:
Expenses 2 ................................ 0.20%3 0.20% 0.20% 0.20% 0.30%3
Net investment income 2 ................... 5.24%3 5.46% 5.31% 5.47% 5.51%3
Net assets at end of period (000) ......... $406,229 $240,359 $415,285 $389,967 $380,708
</TABLE>
<TABLE>
<CAPTION>
FOR THE SIX-MONTH FOR THE FISCAL FOR THE FISCAL FOR THE FISCAL FOR THE PERIOD
PERIOD ENDED YEAR ENDED YEAR ENDED YEAR ENDED JULY 25, 1994(DAGGER)
DECEMBER 31, 1998 JUNE 30, 1998 JUNE 30, 1997 JUNE 30, 1996 THROUGH JUNE 30, 1995
(UNAUDITED) (DOUBLE DAGGER) (DOUBLE DAGGER) (DOUBLE DAGGER) (DOUBLE DAGGER)
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SHORT/INTERMEDIATE BOND PORTFOLIO
NET ASSET VALUE - BEGINNING OF PERIOD . $ 10.40 $ 10.15 $ 10.05 $ 10.25 $ 10.00
---------------------------------------------------------------------------------------------
INVESTMENT OPERATIONS:
Net investment income ............... 0.28 0.59 0.65 0.65 0.60
Net realized and unrealized gain
(loss) on investments ............. 0.21 0.28 0.10 (0.20) 0.25
---------------------------------------------------------------------------------------------
Total from investment operations .. 0.49 0.87 0.75 0.45 0.85
---------------------------------------------------------------------------------------------
DISTRIBUTIONS:
From net investment income .......... (0.28) (0.59) (0.65) (0.65) (0.60)
From net realized gain .............. (0.41) (0.03) -- -- --
---------------------------------------------------------------------------------------------
Total distributions ............... (0.69) (0.62) (0.65) (0.65) (0.60)
---------------------------------------------------------------------------------------------
NET ASSET VALUE - END OF PERIOD ....... $ 10.20 $ 10.40 $ 10.15 $ 10.05 $ 10.25
=============================================================================================
TOTAL RETURN .......................... 4.72%1 8.68% 7.51% 4.48% 8.88%1
RATIOS (TO AVERAGE NET ASSETS)/
SUPPLEMENTAL DATA:
Expenses 2 .......................... 0.50%3 0.50% 0.50% 0.50% 0.41%3
Net investment income 2 ............. 5.22%3 5.63% 6.27% 6.37% 6.41%3
Portfolio turnover .................. N/A N/A N/A 86.06% 128.95%3
Net assets at end of period (000) ... $63,653 $60,797 $108,314 $122,952 $105,020
<FN>
(DAGGER) Commencement of Operations.
(DOUBLE DAGGER) The per share data has been restated to reflect a 1 for 5
reverse stock split which occurred on September 25, 1997.
1 The total return for the period has not been annualized.
2 The annualized expense ratios for the Money Market Portfolio, had there
been no fees waived by the Manager, would have been 0.31%, 0.31%, 0.27%,
0.27% and 0.34% for the six-month period ended December 31, 1998, the
fiscal years ended June 30, 1998, 1997, 1996, and for the period ended June
30, 1995, respectively. The annualized net investment income ratios for the
Money Market Portfolio, had there been no fees waived by the Manager, would
have been 5.13%, 5.35%, 5.24%, 5.40% and 5.47% for the six-month period
ended December 31, 1998, the fiscal years ended June 30, 1998, 1997, 1996,
and for the period ended June 30, 1995, respectively. The annualized
expense ratios for the Short/Intermediate Bond Portfolio, had there been no
fees waived by the Manager, would have been 0.71%, 0.58%, 0.58%, 0.57% and
0.53% for the six-month period ended December 31, 1998, the fiscal years
ended June 30, 1998, 1997, 1996, and for the period ended June 30, 1995,
respectively. The annualized net investment income ratios for the
Short/Intermediate Bond Portfolio, had there been no fees waived by the
Manager, would have been 5.01%, 5.55%, 6.19%, 6.30% and 6.29% for the
six-month period ended December 31, 1998, the fiscal years ended June 30,
1998, 1997, 1996, and for the period ended June 30, 1995, respectively. The
expense and net investment income ratios for the for the six-month period
ended December 31, 1998, the fiscal years ended June 30, 1998 and 1997
include expenses allocated from the Series. See notes to the Financial
Statements for amounts.
3 Annualized.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
7
<PAGE>
WT MUTUAL FUND
FINANCIAL HIGHLIGHTS -- CONTINUED
================================================================================
<TABLE>
<CAPTION>
FOR THE SIX-MONTH FOR THE PERIOD
PERIOD ENDED FOR THE FISCAL FOR THE FISCAL FOR THE FISCAL JANUARY 5, 1995(DAGGER)
DECEMBER 31, 1998 YEAR ENDED YEAR ENDED YEAR ENDED THROUGH
(UNAUDITED) JUNE 30, 1998 JUNE 30, 1997 JUNE 30, 1996 JUNE 30, 1995
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
BROAD MARKET EQUITY PORTFOLIO
NET ASSET VALUE - BEGINNING OF PERIOD ... $ 18.72 $ 20.56 $ 16.58 $ 14.04 $ 12.50
------------------------------------------------------------------------------------------
INVESTMENT OPERATIONS:
Net investment income ................. 0.07 0.16 0.13 0.13 0.11
Net realized and unrealized gain
on investments ...................... 1.77 4.52 4.09 2.56 1.43
------------------------------------------------------------------------------------------
Total from investment operations .... 1.84 4.68 4.22 2.69 1.54
------------------------------------------------------------------------------------------
DISTRIBUTIONS:
From net investment income ............ (0.14) (0.16) (0.15) (0.15) --
From net realized gain ................ (0.34) (6.36) (0.09) -- --
------------------------------------------------------------------------------------------
Total distributions ................. (0.48) (6.52) (0.24) (0.15) --
------------------------------------------------------------------------------------------
NET ASSET VALUE - END OF PERIOD ......... $ 20.08 $ 18.72 $ 20.56 $ 16.58 $ 14.04
==========================================================================================
TOTAL RETURN ............................ 9.99%1 29.09% 25.67% 19.24% 12.32%1
RATIOS (TO AVERAGE NET ASSETS)/
SUPPLEMENTAL DATA:
Expenses3 ............................. 0.80%2 0.80% 0.80% 0.80% 0.80%2
Net investment income3 ................ 0.73%2 0.81% 0.80% 1.34% 3.06%2
Portfolio turnover .................... N/A N/A N/A 16.95% 0.00%2
Net assets at end of period (000) ..... $117,570 $110,052 $88,763 $66,137 $20,865
<FN>
(DAGGER) Commencement of Operations.
1 The total return for the period has not been annualized.
2 Annualized.
3 The annualized expense ratios for the Broad Market Equity Portfolio, had
there been no fees waived by the Manager, would have been 0.90%, 0.93%,
0.94%, 1.05% and 2.56% for the six-month period ended December 31, 1998,
the fiscal years ended June 30, 1998, 1997, 1996, and for the period ended
June 30, 1995, respectively. The annualized net investment income ratios
for the Broad Market Equity Portfolio, had there been no fees waived by the
Manager, would have been 0.63%, 0.68%, 0.66%, 1.09% and 1.30% for the
six-month period ended December 31, 1998, the fiscal years ended June 30,
1998, 1997, 1996, and for the period ended June 30, 1995, respectively. The
expense and net investment income ratios for the for the six-month period
ended December 31, 1998, the fiscal years ended June 30, 1998 and 1997
include expenses allocated from the Series. See notes to the Financial
Statements for amounts.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
8
<PAGE>
WT MUTUAL FUND
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)
================================================================================
1. DESCRIPTION OF THE FUND. The WT Mutual Fund (the "Fund"), formerly the
Kiewit Mutual Fund, is registered under the Investment Company Act of 1940
(the "1940 Act") as an open-end management investment company organized as
a Delaware business trust on June 1, 1994. The Declaration of Trust permits
the Trustees to establish additional series, each of which is a separate
class of shares. The Fund currently has three series of shares in
operation: the WT Money Market Portfolio (formerly the "Kiewit Money Market
Portfolio"), the WT Short/Intermediate Bond Portfolio (formerly the "Kiewit
Intermediate-Term Bond Portfolio") and the WT Broad Market Equity Portfolio
(formerly the "Kiewit Equity Portfolio") (each, a "Portfolio" and
collectively, the "Portfolios"). Prior to December 6, 1994, the Fund was
known as the Kiewit Institutional Fund.
The investment objectives of the three Portfolios are as follows: the WT
Money Market Portfolio is to provide high current income while maintaining
a stable share price; the WT Short/Intermediate Bond Portfolio is to
provide as high a level of current income consistent with reasonable risk;
the WT Broad Market Equity Portfolio is to achieve long-term capital
appreciation. Unlike other investment companies which directly acquire and
manage their own portfolio of securities, each Portfolio seeks to achieve
its investment objective by investing all of its investable assets in a
corresponding series of shares of the Trust, an open-end, management
investment company that issues series of shares (individually and
collectively, the "Series") having the same investment objective, policies
and limitations as each of the Portfolios. As of December 31, 1998, each
Portfolio owned virtually 100% of the ownership interest in its
corresponding Series. The performance of the Portfolios is directly
affected by the performance of the Series. The financial statements of the
Trust, including the Schedules of Investments, are included elsewhere in
this report and should be read in conjunction with the Fund's Financial
Statements.
2. SIGNIFICANT ACCOUNTING POLICIES. The following is a summary of the
significant accounting policies of the Fund:
SECURITY VALUATION. Valuation of each Portfolio is based on the underlying
securities held in the corresponding Series. Each Portfolio is allocated
its portion of the Series' securities market value based upon its ownership
interest in the Series. Securities held by the Series which are listed on a
securities exchange and for which market quotations are available are
valued at the last quoted sale price of the day or, if there is no such
reported sale, securities are valued at the mean between the most recent
quoted bid and asked prices. Price information for listed securities is
taken from the exchange where the security is primarily traded. Unlisted
securities for which market quotations are readily available are valued at
the most recent bid prices. Securities with a remaining maturity of 60 days
or less are valued at amortized cost, which approximates market value,
unless the Trust's Board of Trustees determines that this does not
represent fair value. The WT Money Market Series values securities
utilizing the amortized cost valuation method which is permitted under Rule
2a-7 under the 1940 Act. This method involves valuing a portfolio security
initially at its cost and thereafter adjusting for amortization of premium
or accretion of discount to maturity.
FEDERAL INCOME TAXES. Each Portfolio is treated as a separate entity for
Federal income tax purposes and each intends to continue qualifying as a
"regulated investment company" under Subchapter M of the Internal Revenue
Code of 1986, as amended (the "Internal Revenue Code"), and to distribute
all of its taxable income to its shareholders. Therefore, no Federal income
tax provision is required. At June 30, 1998, the WT Money Market Portfolio
had a net tax basis capital loss carryforward available to offset future
net capital gains of approximately $4,000, which will expire as follows:
CAPITAL LOSS EXPIRATION
CARRYFORWARD DATE
-----------------------------
WT Money Market Portfolio $1,000 06/30/2004
3,000 06/30/2006
INVESTMENT INCOME AND DISTRIBUTIONS TO SHAREHOLDERS. The Portfolios record
their share of the respective Series' income, expenses and realized and
unrealized gains and losses daily. Additionally, each Portfolio records its
own expenses as incurred. Distributions to shareholders of each Portfolio,
except WT Broad Market Equity Portfolio, are declared daily from net
investment income and paid to shareholders monthly. The Fund's policy is to
distribute substantially all net investment income from the WT Broad Market
Equity Portfolio annually. Distributions of net capital gains realized by
each Portfolio will be made annually.
9
<PAGE>
WT MUTUAL FUND
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED) -- CONTINUED
================================================================================
DEFERRED ORGANIZATION COSTS. Organization costs incurred by each Portfolio
have been deferred and are being amortized using the straight-line method
over a five-year period beginning on the date that each Portfolio commenced
operations. In the event that any of the initial shares of a Portfolio are
redeemed during the amortization period by any holder thereof, the
redemption proceeds will be reduced by any unamortized organization
expenses in the same proportion as the number of initial shares being
redeemed bears to the number of initial shares outstanding at the time of
such redemption.
USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS. The
preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amount of assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those
estimates.
3. INVESTMENT TRANSACTIONS. During the six-month period ended December 31,
1998, cash contributed to (additions) and cash withdrawn from (reductions)
the respective Series were as follows:
MONEY SHORT/INTERMEDIATE BROAD MARKET
MARKET BOND EQUITY
------------------------------------------------------
Additions $1,209,046,785 $2,532,984 $6,287,137
Reductions (1,051,829,184) (2,570,532) (9,475,834)
4. MANAGEMENT AND ADMINISTRATION FEE AND OTHER TRANSACTIONS WITH AFFILIATES.
Effective October 20, 1998, Wilmington Trust Company ("WTC"), a wholly
owned subsidiary of Wilmington Trust Corporation, serves as the investment
manager to each Series of the Trust. WTC provides the Trust with records
concerning WTC's activities which the Trust is required to maintain and
renders regular reports to me Trust's officers and the Board of Trustees.
WTC also selects brokers and dealers to effect securities transactions.
Under the investment management agreement between KIMC and the Trust on
behalf of each Series, the monthly fees of the Series are at the following
annual rates of their average monthly net assets: WT Money Market Series
0.20%; WT Short/Intermediate Bond Series 0.40%; and WT Broad Market Equity
Series 0.70%. Although the Portfolios do not directly pay WTC for its
services under the investment management agreement, each Portfolio shares
in its pro rata portion allocated from its corresponding Series. WTC has
agreed to waive all or a portion of its management fee and assume certain
Portfolio operating expenses (excluding taxes, extraordinary expenses,
brokerage commissions and interest) in an amount that will limit annual
operating expenses to not more than the following percentage of the average
daily net assets of each Portfolio: WT Money Market Portfolio - 0.20%, WT
Short/Intermediate Bond Portfolio - 0.50%; and WT Broad Market Equity
Portfolio - 0.80%. These undertakings may be amended or rescinded at any
time in the future. Prior to October 20, 1998, Kiewit Investment Management
Corp. ("KIMC"), a wholly owned subsidiary of Kiewit Construction Company,
provided the management services.
Effective October 20, 1998, the Fund entered into an Administrative
Services Agreement with WTC. Pursuant to this agreement, WTC performs
various services, including: supervision of the services provided by the
Fund's custodian, transfer and dividend disbursing agent and others who
provide services to the Fund for the benefit of the Portfolios; providing
shareholders with information about the Portfolios and their investment as
they or the Fund may request; assisting the Portfolios in conducting
meetings of the shareholders; furnishing information as the Board of
Trustees may require regarding the corresponding Series; and any other
administrative services for the benefit of the Portfolio as the Board of
Trustees may reasonably request. For its services, each Portfolio pays WTC
a monthly fee equal to one-twelfth of 0.02% of the Portfolio's average net
assets. Prior to October 20, 1998, KIMC provided the administrative
services.
PFPC Inc. ("PFPC"), an indirect wholly-owned subsidiary of PNC Bank Corp.,
a multi-bank holding company, serves as Administrator to the Fund and Trust
pursuant to separate Administration Agreements with the Fund and the Trust.
As Administrator, PFPC is responsible for services such as financial
reporting, compliance monitoring and corporate management. For the services
provided, PFPC receives a monthly administration fee from the Trust, on
behalf of each Series. Each Series pays a proportionate share of a
complex-wide annual fee of 0.015% of the Trust's aggregate total average
daily net assets in excess of $125 million. This asset based fee is
determined on a total average daily net asset basis, and is subject to
prescribed minimums.
10
<PAGE>
WT MUTUAL FUND
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED) -- CONTINUED
================================================================================
PNC Bank, N.A. ("PNC") serves as custodian to the Fund and the Trust.
PFPC serves as transfer agent and dividend disbursing agent of the Fund
pursuant to a separate Transfer Agency Agreement with the Fund on behalf of
each Portfolio. For its services, the Fund pays PFPC a monthly fee of
$5,000, plus out of pocket expenses.
PFPC determines the net assets value per share of each Portfolio and
provides accounting services to the Fund and Trust pursuant to separate
Accounting Services Agreements with the Fund and the Trust. For its
services, PFPC receives from the Trust, on behalf of each Series, the
Series' proportionate share of a complex-wide annual fee of 0.015% of the
Trust's aggregate total average daily net assets in excess of $100 million.
This asset-based fee is determined on a total average daily net asset
basis, and is subject to prescribed fixed minimums.
Independent Trustees are each paid an annual fee of $5,000 from the Fund,
plus $250 per Portfolio per meeting attended and reimbursed travel expenses
in connection with meetings. Certain officers and trustees of the Trust are
also officers and/or directors of WTC.
11
<PAGE>
WT MUTUAL FUND
NOTICE TO SHAREHOLDERS (UNAUDITED)
================================================================================
At a special meeting on October 19, 1998, shareholders of the WT Mutual
Fund (formerly the "Kiewit Mutual Fund") approved three proposals. The
proposals and voting results were as follows:
1. Approve the new investment advisory agreements between the WT Investment
Trust I (formerly the "Kiewit Investment Trust"), on behalf of the WT
Mutual Fund, and the Wilmington Trust Company. The voting results by each
Portfolio are as follows:
FOR AGAINST ABSTAINED
----------- ------- ---------
WT Money Market Portfolio 340,460,275 11,500 251,652
WT Short/Intermediate Bond Portfolio 5,662,978 -- 156,533
WT Broad Market Equity Portfolio 5,601,340 -- 71,134
2. Election of two Trustees, Nicholas A. Giordano and Robert J. Christian,
to the WT Mutual Fund's Board of Trustess. The voting results for each
Trustee were as follows:
FOR AGAINST ABSTAINED
----------- ------- ---------
Nicholas A. Giordano 351,660,923 42,952 479,319
Robert J. Christian 351,672,423 31,452 479,319
3. Approve the selection of PricewaterhouseCoopers LLP as the WT Mutual
Fund's independent accountants for the fiscal year ending June 30, 1999.
The voting results were as follows:
FOR AGAINST ABSTAINED
----------- ------- ---------
PricewaterhouseCoopers LLP 351,724,593 -- 479,319
12
<PAGE>
WT INVESTMENT TRUST I
SEMI-ANNUAL REPORT / DECEMBER 31, 1998 (UNAUDITED)
================================================================================
(The following pages should be read in conjunction with WT Mutual Fund
Semi-Annual Financial Statements.)
13
<PAGE>
WT INVESTMENT TRUST I / MONEY MARKET SERIES
- -------------------------------------------
INVESTMENTS / DECEMBER 31, 1998 (UNAUDITED)
(Showing Percentage of Total Value of Net Assets)
================================================================================
<TABLE>
<CAPTION>
MOODY'S/S&P PRINCIPAL VALUE
RATING AMOUNT (NOTE 2)
----------- ----------- ------------
<S> <C> <C> <C>
CERTIFICATES OF DEPOSIT -- 41.8%
U.S. BANKS, U.S. BRANCHES -- 11.0%
Chase Manhattan, 5.27%, 02/09/99 ..................... P1, A1+ $ 15,000,000 $ 15,000,000
Harris Trust & Savings Bank, 5.09%, 03/15/99 ......... P1, A1+ 15,000,000 15,000,000
Morgan Guaranty New York, 5.24%, 03/16/99 ............ P1, A1+ 15,000,000 15,000,000
------------
45,000,000
------------
FOREIGN BANKS, FOREIGN CENTERS -- 9.8%
Barclay's Bank, PLC, 5.68%, 03/24/99 ................. P1, A1+ 10,000,000 10,012,823
Bayerische Hypotheken-Und Vereinsbank, 5.12%, 01/25/99 P1, A1+ 15,000,000 15,000,099
Deutsche Bank, 5.21%, 03/17/99 ....................... P1, A1+ 15,000,000 15,000,307
------------
40,013,229
------------
FOREIGN BANKS, U.S. BRANCHES -- 21.0%
Banque Nationale de Paris, 5.15%, 02/02/99 ........... P1, A1 15,000,000 15,000,000
Canadian Imperial Bank of Commerce, 5.11%, 01/20/99 .. P1, A1+ 15,000,000 15,000,000
Credit Agricole Indosuez, 5.17%, 03/03/99 ............ P1, A1+ 10,000,000 10,000,000
Deutsche Bank, 5.69%, 06/03/99 ....................... P1, A1+ 5,000,000 5,010,576
Royal Bank of Canada, 5.65%, 07/12/99 ................ P1, A1+ 5,500,000 5,515,501
Societe Generale, 5.58%, 02/10/99 .................... P1, A1+ 15,000,000 15,003,628
Toronto Dominion, 5.18%, 02/23/99 .................... P1, A1+ 10,000,000 10,000,363
Westdeutsche Landesbank, 5.30%, 02/08/99 ............. P1, A1+ 10,000,000 10,000,104
------------
85,530,172
------------
TOTAL CERTIFICATES OF DEPOSIT (COST $155,543,401) ......................... 170,543,401
------------
COMMERCIAL PAPER -- 52.6%
AUTOMOBILES -- 3.6%
Daimler-Benz North America Corp., 5.00%, 03/26/99 .... P1, A1 5,000,000 4,941,667
Daimler-Benz North America Corp., 5.02%, 04/22/99 .... P1, A1 10,000,000 9,845,217
------------
14,786,884
------------
BANKS -- 7.3%
Abbey National North America, 5.20%, 02/10/99 ........ P1, A1+ 10,000,000 9,942,222
Commerzbank U.S. Finance Inc., 5.03%, 03/11/99 ....... P1, A1+ 10,000,000 9,903,592
Commerzbank U.S. Finance Inc., 5.07%, 01/13/99 ....... P1, A1+ 10,000,000 9,983,100
------------
29,828,914
------------
CHEMICALS -- 4.9%
Akzo Nobel America, Inc., 5.08%, 01/26/99 ............ P1, A1 10,000,000 9,964,722
Akzo Nobel America, Inc., 5.09%, 01/27/99 ............ P1, A1 5,000,000 4,981,620
Akzo Nobel America, Inc., 5.25%, 02/12/99 ............ P1, A1 5,000,000 4,969,375
------------
19,915,717
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
14
<PAGE>
WT INVESTMENT TRUST I / MONEY MARKET SERIES
- -------------------------------------------
INVESTMENTS / DECEMBER 31, 1998 (UNAUDITED) -- CONTINUED
================================================================================
<TABLE>
<CAPTION>
MOODY'S/S&P PRINCIPAL VALUE
RATING AMOUNT (NOTE 2)
----------- ----------- ------------
<S> <C> <C> <C>
FINANCIAL SERVICES -- 22.1%
Allianz of America Finance Corp., 5.23%, 02/12/99 ............... P1, A1 $ 10,000,000 $ 9,938,983
Allianz of America Finance Corp., 5.03%, 03/09/99 ............... P1, A1 5,000,000 4,953,193
Allianz of America Finance Corp., 5.10%, 03/11/99 ............... P1, A1 5,000,000 4,951,125
General Electric Capital Corp., 5.25%, 01/21/99 ................. P1, A1+ 5,000,000 4,985,417
J.P. Morgan & Co. Inc., 5.03%, 03/25/99 ......................... P1, A1+ 3,000,000 2,965,209
Morgan Stanley Dean Witter & Co., 5.15%, 02/05/99 ............... P1, A1 10,000,000 9,949,931
Morgan Stanley Dean Witter & Co., 5.10%, 02/26/99 ............... P1, A1 5,000,000 4,960,333
National Rural Utilities Co-op., 5.02%, 03/19/99 ................ P1, NR 20,000,000 19,785,256
Transamerica Finance Corp., 5.18%, 02/25/99 ..................... P1, A1 13,000,000 12,897,119
UBS Finance (DE) Inc., 5.05%, 01/22/99 .......................... P1, A1+ 15,000,000 14,955,821
------------
90,342,387
------------
LEASING -- 6.1%
International Lease Finance Corp., 5.21%, 02/02/99 .............. P1, A1+ 5,000,000 4,976,844
Vehicle Services of America, LOC Nationsbank, NA, 5.13%, 03/04/99 P1, A1+ 20,000,000 19,823,300
------------
24,800,144
------------
OIL -- 2.5%
Chevron Transport Corp., 5.02%, 01/14/99 ........................ P1, A1+ 10,000,000 9,981,872
------------
PHARMACEUTICALS PREPARATIONS -- 1.0%
Zeneca Wilmington Inc., 5.08%, 01/19/99 ......................... P1, A1+ 4,000,000 3,989,840
------------
SECURITIES DEALERS -- 5.1%
CS First Boston Inc., 5.20%, 01/19/99 ........................... P1, A1+ 10,000,000 9,974,000
CS First Boston Inc., 5.28%, 02/02/99 ........................... P1, A1+ 5,000,000 4,976,533
Merrill Lynch & Co., Inc., 5.04%, 01/11/99 ...................... P1, A1+ 6,000,000 5,991,600
------------
20,942,133
------------
TOTAL COMMERCIAL PAPER (COST $229,587,891) ........................................... 214,587,891
------------
REPURCHASE AGREEMENT -- 5.0%
With CS First Boston, Inc.: at 5.08%
dated 12/31/98, to be repurchased
at $20,626,336 on 01/04/99,
collateralized by $20,502,193 of a
Federal National Mortgage
Association Discount Note maturing
on 03/11/99, 5.08%, 01/04/99
(COST $20,614,700) ..................................................... 20,614,700 20,614,700
------------
TOTAL INVESTMENTS (COST $405,745,992)(DAGGER) -- 99.4% ........................................ 405,745,992
ASSETS AND LIABILITIES, NET -- 0.6% ........................................................... 2,417,596
------------
NET ASSETS -- 100.0% .......................................................................... $408,163,588
============
<FN>
(DAGGER) Cost for Federal Income tax purposes.
</FN>
</TABLE>
15
<PAGE>
WT INVESTMENT TRUST I / SHORT/INTERMEDIATE BOND SERIES
- ------------------------------------------------------
INVESTMENTS / DECEMBER 31, 1998 (UNAUDITED)
(Showing Percentage of Total Value of Net Assets)
================================================================================
<TABLE>
<CAPTION>
MOODY'S/S&P PRINCIPAL VALUE
RATING AMOUNT (NOTE 2)
----------- ----------- ------------
<S> <C> <C> <C>
CORPORATE BONDS -- 30.0%
BANKS -- 3.6%
BankBoston, 6.38%, 04/15/08 ............................................... A2, A- $ 1,000,000 $ 998,750
First Tennessee Bank, 5.75%, 12/01/08 ..................................... A3, A- 300,000 295,875
NationsBank Corp., 6.50%, 08/15/03 ........................................ Aa3, A 1,000,000 1,043,750
-----------
2,338,375
-----------
FINANCIAL -- 8.1%
Bear Stearns Co., Inc., 6.50%, 08/01/02 ................................... A2, A 1,000,000 1,018,750
Ford Motor Credit Co., 7.00%, 09/25/01 .................................... A1, A 1,000,000 1,040,000
General Motors Acceptance Corp., 6.75%, 02/07/02 .......................... A2, A 1,000,000 1,032,500
Household Finance Corp., 7.25%, 07/15/03 .................................. A2, A 1,000,000 1,058,750
Morgan Stanley Dean Witter & Co., 6.88%, 03/01/07 ......................... Aa3, A+ 1,000,000 1,050,000
-----------
5,200,000
-----------
INDUSTRIAL -- 12.5%
Bausch & Lomb, Inc., 6.75%, 12/15/04 ...................................... Baa2, BBB 1,000,000 1,023,750
Dayton Hudson Corp., 6.40%, 02/15/03 ...................................... A3, A- 1,200,000 1,236,000
EG&G, Inc., 6.80%, 10/15/05 ............................................... Baa2, A 1,000,000 1,080,000
Hanson PLC, 7.38%, 01/15/03 ............................................... A3, A- 1,000,000 1,050,000
Hoechst-Celanese Corp., 6.13%, 02/01/04 ................................... A2, A+ 1,000,000 1,040,000
IBM Corp., 5.10%, 11/10/03 ................................................ A1, A 500,000 495,000
Penney (J.C.) Co., 6.13%, 11/15/03 ........................................ A2, A 1,000,000 1,028,750
Praxair, Inc., 6.75%, 03/01/03 ............................................ A3, BBB+ 1,000,000 1,025,000
-----------
7,978,500
-----------
TELECOMMUNICATIONS -- 1.6%
Cable & Wireless Communications, 6.38%, 03/06/03 .......................... A3, A- 1,000,000 1,003,750
-----------
UTILITIES -- 4.2%
Citizens Utilities Co., 7.60%, 06/01/06 ................................... A2, AA- 1,000,000 1,116,250
Oklahoma Gas & Electric, 6.50%, 07/15/17 .................................. Aa3, AA- 500,000 536,250
Southern California Edison, 5.88%, 01/15/01 ............................... A3, A 1,000,000 1,012,500
-----------
2,665,000
-----------
TOTAL CORPORATE BONDS (COST $18,772,691) .............................. 19,185,625
-----------
ASSET-BACKED SECURITIES -- 2.2%
Contimortgage Home Equity Loan Trust, Ser. 1998-2, Cl. A6, 6.36%, 11/15/19 Aaa, AAA 600,000 603,600
First Sierra Equipment Contract Trust, Ser. 1998-1, Cl. A4, 5.63%, 08/12/04 Aaa, AAA 800,000 796,608
-----------
TOTAL ASSET-BACKED SECURITIES (COST $1,402,507) ....................... 1,400,208
-----------
U.S. GOVERNMENT AGENCY OBLIGATIONS* -- 10.8%
Federal National Mortgage Association Notes, 6.20%, 06/26/00 .......................... 5,250,000 5,347,435
Federal National Mortgage Association Notes, 5.42%, 01/23/01 .......................... 1,000,000 1,010,204
Federal National Mortgage Association Notes, 7.65%, 03/10/05 .......................... 500,000 562,049
-----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (COST $6,785,087) ...................................... 6,919,688
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
16
<PAGE>
WT INVESTMENT TRUST I / SHORT/INTERMEDIATE BOND SERIES
- ------------------------------------------------------
INVESTMENTS / DECEMBER 31, 1998 (UNAUDITED) -- CONTINUED
================================================================================
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 2)
----------- -----------
<S> <C> <C>
U.S. TREASURY OBLIGATIONS* -- 54.7%
U.S. Treasury Notes, 6.88%, 08/31/99 ............................. $ 1,000,000 $ 1,014,237
U.S. Treasury Notes, 5.88%, 11/15/99 ............................. 7,600,000 7,678,541
U.S. Treasury Notes, 5.75%, 10/31/00 ............................. 2,400,000 2,446,658
U.S. Treasury Notes, 6.25%, 04/30/01 ............................. 2,750,000 2,848,568
U.S. Treasury Notes, 5.88%, 11/30/01 ............................. 4,250,000 4,393,193
U.S. Treasury Notes, 6.13%, 12/31/01 ............................. 2,000,000 2,080,861
U.S. Treasury Notes, 6.25%, 06/30/02 ............................. 2,350,000 2,466,715
U.S. Treasury Notes, 7.50%, 02/15/05 ............................. 1,500,000 1,717,327
U.S. Treasury Notes, 6.50%, 10/15/06 ............................. 6,000,000 6,671,812
U.S. Treasury Bonds, 10.38%, 11/15/12 ............................ 2,700,000 3,738,517
-----------
TOTAL U.S. TREASURY OBLIGATIONS (COST $34,008,759) ......................... 35,056,429
-----------
COMMERCIAL PAPER -- 1.1%
American Express Commercial Paper, 3.00%, 01/04/99
(COST $716,474) ................................................ 716,474 716,474
-----------
TOTAL INVESTMENTS (COST $61,685,518)(DAGGER) -- 98.8% ............................... 63,278,424
ASSETS AND LIABILITIES, NET -- 1.2% ................................................. 749,170
-----------
NET ASSETS -- 100.0% ................................................................ $64,027,594
===========
<FN>
* While no ratings are shown for U.S. Government Agency Obligations and U.S.
Treasury Obligations, they are considered to be of the highes quality,
comparable to Moody's AAA rating and S&P's Aaa rating.
(DAGGER) The cost for Federal income tax purposes. At December 31, 1998, net
unrealized appreciation was $1,592,906. This consisted of aggregate gross
unrealized appreciation for all securities for which there was an excess of
market value over tax cost of $1,603,087, and aggregate gross unrealized
depreciation for all securities for which there was an excess of tax cost
over market value of $10,181.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
17
<PAGE>
WT INVESTMENT TRUST I / BROAD MARKET EQUITY PORTFOLIO
- -----------------------------------------------------
INVESTMENTS / DECEMBER 31, 1998 (UNAUDITED)
(Showing Percentage of Total Value of Net Assets)
================================================================================
VALUE
SHARES (NOTE 2)
------ ----------
COMMON STOCK -- 99.7%
COMMUNICATION & BROADCASTING -- 11.0%
Airtouch Communications, Inc.* .... 7,600 $ 548,150
Alltel Corp. ...................... 3,600 215,325
Ameritech Corp. ................... 13,100 830,212
AT&T Corp. ........................ 22,100 1,663,025
Bell Atlantic Corp. ............... 19,300 1,096,481
BellSouth Corp. ................... 23,600 1,177,050
CBS Corp. ......................... 8,700 284,925
Clear Channel Communications,
Inc.* ........................... 2,600 141,700
Comcast Corp. (A Shares) .......... 4,700 275,831
GTE Corp. ......................... 11,500 775,531
MCI Worldcom, Inc.* ............... 23,246 1,667,900
Mediaone Group* ................... 7,700 361,900
Nextel Communications, Inc.
(A Shares)* ..................... 3,500 82,687
SBC Communications, Inc. .......... 22,900 1,228,012
Sprint Corp. ...................... 5,900 496,337
Sprint Corp.-Pcs Group-
When Issued ..................... 2,950 68,219
Tele-Communications, Inc.
(A Shares)* ..................... 6,900 381,656
Time Warner, Inc. ................. 14,000 868,875
US West Inc. ...................... 6,310 407,784
Viacom, Inc. (B Shares)* .......... 4,500 333,000
----------
TOTAL COMMUNICATION & BROADCASTING ............... 12,904,600
----------
ELECTRIC, GAS & WATER UTILITIES -- 2.5%
American Electric Power Co., Inc. . 2,600 122,362
Carolina Power & Light Co. ........ 2,000 94,125
Central & South West Corp. ........ 3,000 82,312
Consolidated Edison, Inc. ......... 3,200 169,200
Dominion Resources, Inc. .......... 2,600 121,550
Duke Power Co. .................... 4,600 294,687
Edison International .............. 6,300 175,612
Enron Corp. ....................... 4,100 233,956
Entergy Corp. ..................... 3,300 102,712
First Energy Corp. ................ 3,100 100,944
FPL Group, Inc. ................... 2,500 154,062
Houston Industries, Inc. .......... 3,900 125,287
Pacificorp ........................ 4,000 84,250
PG & E Corp. ...................... 5,900 185,850
Public Service Enterprise Group ... 3,200 128,000
Southern Co. ...................... 8,700 252,844
Texas Utilities Co. ............... 3,300 154,069
Unicom Corp. ...................... 3,000 115,687
Williams Cos., Inc. ............... 7,700 240,144
----------
TOTAL ELECTRIC, GAS & WATER UTILITIES ............ 2,937,653
----------
VALUE
SHARES (NOTE 2)
------ ----------
FINANCE & INSURANCE -- 16.2%
HOSPITAL & MEDICAL SERVICE PLANS -- 0.5%
Aetna, Inc. ....................................... 2,000 $ 157,250
Aon Corp. ......................................... 2,300 127,362
Columbia Healthcare Corp. ......................... 8,200 202,950
United Healthcare Corp. ........................... 2,600 111,962
----------
599,524
----------
INSURANCE CARRIERS -- 4.4%
Allstate Corp. .................................... 10,800 417,150
American General Corp. ............................ 3,400 265,200
American International Group,
Inc.............................................. 12,900 1,246,462
Chubb Corp. ....................................... 1,900 123,262
CIGNA Corp. ....................................... 3,000 231,937
Cincinnati Financial Corp. ........................ 2,100 76,912
Citigroup, Inc. ................................... 22,200 1,098,900
Conseco, Inc. ..................................... 2,600 79,462
Hartford Financial Services Group,
Inc.............................................. 3,200 175,600
Jefferson-Pilot Corp. ............................. 1,500 112,500
Lincoln National Corp. ............................ 1,300 106,356
Loews Corp. ....................................... 1,500 147,375
Marsh & McLennan Cos., Inc. ....................... 3,450 201,609
MGIC Investment Corp. ............................. 1,500 59,719
Progressive Corporation of Ohio ................... 1,000 169,375
Safeco Corp. ...................................... 1,700 72,994
St. Paul Cos., Inc. ............................... 2,200 76,450
SunAmerica, Inc. .................................. 2,700 219,037
Torchmark Corp. ................................... 1,800 63,562
Transamerica Corp. ................................ 800 92,400
Travelers Property Casualty Corp.
(A Shares) ...................................... 1,500 46,500
UNUM Corp. ........................................ 1,800 105,075
----------
5,187,837
----------
SAVINGS, CREDIT & OTHER FINANCIAL INSTITUTIONS -- 2.9%
American Express Co. .............................. 5,900 603,275
Associates First Capital Corp.
(A shares) ...................................... 8,966 379,934
Capital One Financial Corp. ....................... 800 92,000
Federal Home Loan Mortgage
Corp ............................................ 8,800 567,050
Federal National Mortgage
Association ..................................... 12,400 917,600
Household International, Inc. ..................... 6,346 251,460
Paychex, Inc. ..................................... 1,800 92,587
Providian Financial Corp. ......................... 1,800 135,000
SLM Holding Corp. ................................. 2,200 105,600
Washington Mutual, Inc. ........................... 7,284 278,158
----------
3,422,664
----------
The accompanying notes are an integral part of the financial statements.
18
<PAGE>
WT INVESTMENT TRUST I / BROAD MARKET EQUITY PORTFOLIO
- -----------------------------------------------------
INVESTMENTS / DECEMBER 31, 1998 (UNAUDITED) -- CONTINUED
================================================================================
VALUE
SHARES (NOTE 2)
------ ----------
SECURITY & COMMODITY BROKERS, DEALERS & SERVICES -- 1.0%
Charles Schwab Corp. ............................ 5,400 $ 303,412
Lehman Brothers Holdings, Inc. .................. 1,200 52,875
Merrill Lynch & Co., Inc. ....................... 4,200 280,350
Morgan Stanley Dean Witter
& Co. ......................................... 7,500 532,500
Waddell & Reed Financial, Inc. .................. 102 2,416
Waddell & Reed Financial, Inc.
(B Shares)* ................................... 440 10,230
----------
1,181,783
----------
STATE & NATIONAL BANKS -- 7.3%
Bank of New York Co., Inc. ...................... 9,400 378,350
Bank One Corp. .................................. 15,194 775,844
BankAmerica Corp. New ........................... 20,565 1,236,471
BankBoston Corp. ................................ 3,800 147,962
BB&T Corp. ...................................... 3,600 145,125
Chase Manhattan Corp. ........................... 11,200 762,300
Comerica, Inc. .................................. 2,100 143,194
Fifth Third Bancorp ............................. 3,000 213,937
First Union Corp. ............................... 12,100 735,831
Fleet Financial Group, Inc. ..................... 6,800 303,875
Huntington Bancshares Inc. ...................... 2,860 85,979
J.P. Morgan & Co., Inc. ......................... 2,200 231,137
Keycorp. ........................................ 6,000 192,000
MBNA Corp. ...................................... 9,450 235,659
Mellon Bank Corp. ............................... 3,400 233,750
Merchantile Bancorp, Inc. ....................... 1,800 83,025
National City Corp. ............................. 2,900 210,250
Northern Trust Corp. ............................ 1,500 130,969
PNC Bank Corp. .................................. 3,900 211,087
Regions Financial Corp. ......................... 2,400 96,750
Republic New York Corp. ......................... 1,400 63,787
State Street Corp. .............................. 2,100 146,081
Summit Bancorp .................................. 2,400 104,850
Suntrust Banks, Inc. ............................ 2,900 221,850
Synovus Financial Corp. ......................... 3,450 84,094
U.S. Bancorp .................................... 9,900 351,450
Wachovia Corp. .................................. 2,600 227,337
Wells Fargo Co. ................................. 21,600 862,650
----------
8,615,594
----------
TOTAL FINANCE & INSURANCE .................................... 19,007,402
----------
MANUFACTURING -- 49.3%
AIRCRAFT & AEROSPACE -- 1.3%
Allied-Signal, Inc. ............................. 7,200 319,050
Boeing Co. ...................................... 11,600 378,450
Lockheed Martin Corp. ........................... 2,400 203,400
Northrop Grumman Corp. .......................... 900 65,812
Raytheon Co. (B Shares) ......................... 4,300 228,975
United Technologies Corp. ....................... 3,200 348,000
----------
1,543,687
----------
VALUE
SHARES (NOTE 2)
------ ----------
CHEMICAL & ALLIED PRODUCTS -- 2.0%
Air Products & Chemicals, Inc. ................ 3,800 $ 152,000
Amgen, Inc.* .................................. 4,200 439,162
Dow Chemical Co. .............................. 3,100 281,906
Dupont (E.I.) de Nemours & Co. ................ 13,500 716,344
Monsanto Co. .................................. 7,500 356,250
PPG Industries, Inc. .......................... 2,500 145,625
Praxair, Inc. ................................. 2,100 74,025
Rohm & Haas Co. ............................... 2,400 72,300
Sigma Aldrich Corp. ........................... 1,200 35,250
Union Carbide Corp. ........................... 1,650 70,125
WR Grace & Company* ........................... 2,000 31,375
-----------
2,374,362
-----------
COMPUTERS & OFFICE EQUIPMENT-- 11.9%
3Com Corp.* ................................... 4,700 210,619
Cisco Systems, Inc.* .......................... 19,300 1,791,281
Compaq Computer Corp. ......................... 21,300 893,269
EMC Corp.* .................................... 7,200 612,000
Hewlett-Packard Co. ........................... 12,400 847,075
Intel Corp. ................................... 20,200 2,394,962
International Business Machines
Corp ........................................ 11,200 2,069,200
Micron Technology, Inc.* ...................... 2,900 146,631
Microsoft Corp.* .............................. 30,400 4,216,100
Pitney Bowes, Inc. ............................ 3,800 251,037
QLogic Corp.* ................................. 300 39,262
Seagate Technology, Inc.* ..................... 3,300 99,825
Xerox Corp. ................................... 4,100 483,800
-----------
14,055,061
-----------
CONSUMER PRODUCTS -- 3.1%
Avon Products, Inc. ........................... 3,400 150,450
Clorox Co. .................................... 1,400 163,537
Colgate-Palmolive Co. ......................... 3,700 343,637
Gillette Co. .................................. 13,400 647,387
Kimberly-Clark Corp. .......................... 7,100 386,950
Maytag Corp. .................................. 2,000 124,500
Newell Co. .................................... 2,100 86,625
Procter & Gamble Co. .......................... 16,000 1,461,000
Ralston Purina Group .......................... 5,200 168,350
Wm. Wrigley, Jr. Co. .......................... 1,500 134,344
-----------
3,666,780
-----------
The accompanying notes are an integral part of the financial statements.
19
<PAGE>
WT INVESTMENT TRUST I / BROAD MARKET EQUITY PORTFOLIO
- -----------------------------------------------------
INVESTMENTS / DECEMBER 31, 1998 (UNAUDITED) -- CONTINUED
================================================================================
VALUE
SHARES (NOTE 2)
------ ----------
FOOD & BEVERAGE -- 5.3%
Agribrands International, Inc.* ..................... 140 $ 4,200
Anheuser-Busch Cos., Inc. ........................... 6,200 406,875
Archer Daniels Midland Co. .......................... 7,980 137,156
Bestfoods, Inc. ..................................... 3,800 202,350
Campbell Soup Co. ................................... 5,800 319,000
Coca-Cola Co. ....................................... 29,400 1,966,125
Coca-Cola Enterprises, Inc. ......................... 3,000 107,250
Conagra, Inc. ....................................... 6,400 201,600
General Mills, Inc. ................................. 2,100 163,275
Heinz (H.J.) Co. .................................... 4,700 266,137
Hershey Foods Corp. ................................. 1,900 118,156
Kellogg Co. ......................................... 5,200 177,450
PepsiCo, Inc. ....................................... 17,800 728,688
Quaker Oats Co. ..................................... 1,800 107,100
Sara Lee Corp. ...................................... 12,000 338,250
Sysco Corp. ......................................... 4,800 131,700
The Seagram Co. Ltd. ................................ 5,000 190,000
Unilever NV ......................................... 7,600 630,325
Vlasic Foods International* ......................... 580 13,811
----------
6,209,448
----------
GAMES & TOYS -- 0.1%
Mattel, Inc. ........................................ 3,900 88,969
----------
IRON & STEEL -- 0.1%
Nucor Corp. ......................................... 1,500 64,875
----------
MISC. ELECTRICAL MACHINERY, EQUIPMENT & SUPPLIES -- 4.3%
AMP, Inc. ........................................... 3,000 156,188
Applied Materials, Inc.* ............................ 5,000 213,438
Emerson Electric Co. ................................ 5,600 350,350
General Electric Co. ................................ 37,000 3,776,313
Honeywell, Inc. ..................................... 1,700 128,031
Texas Instruments, Inc. ............................. 5,500 470,594
----------
5,094,914
----------
MISC. INDUSTRIAL MACHINERY & EQUIPMENT-- 0.8%
Baker Hughes, Inc. .................................. 2,300 40,681
Caterpillar, Inc. ................................... 3,700 170,200
Cooper Industries, Inc. ............................. 600 28,613
Deere & Co. ......................................... 3,400 112,625
Dover Corp. ......................................... 4,000 146,500
Eaton Corp. ......................................... 1,000 70,688
Illinois Tool Works, Inc. ........................... 3,400 197,200
Ingersoll Rand Co. .................................. 2,300 107,956
McDermott International, Inc. ....................... 1,000 24,688
Thermo Electron Corp.* .............................. 2,000 33,875
----------
933,026
----------
VALUE
SHARES (NOTE 2)
------ ----------
MISCELLANEOUS MANUFACTURING INDUSTRIES -- 1.7%
Allegheny Teledyne, Inc. .................... 2,000 $ 40,875
Ascend Communications, Inc. ................. 3,000 197,250
Berkshire Hathaway, Inc. ....................
(B Shares) ................................ 116 271,425
Corning, Inc. ............................... 4,100 184,500
Crown Cork & Seal Co., Inc. ................. 1,700 52,381
Minnesota Mining & Manufacturing
Co. ....................................... 5,200 369,850
Owens-Illinois, Inc. ........................ 2,000 61,250
Pioneer Hi Bred International ............... 3,300 89,100
Sealed Air Corp.* ........................... 956 48,816
Tyco International Ltd. ..................... 7,900 595,956
UST, Inc. ................................... 2,500 87,188
-----------
1,998,591
-----------
OIL FIELD MACHINERY & EQUIPMENT -- 0.3%
Schlumberger Ltd. ........................... 6,700 309,038
-----------
PAPER & PAPER PRODUCTS -- 0.4%
Fort James Corp. ............................ 2,600 104,000
International Paper Co. ..................... 4,100 183,731
Weyerhaeuser Co. ............................ 2,700 137,194
-----------
424,925
-----------
PHARMACEUTICAL PREPARATIONS-- 10.5%
Abbott Laboratories ......................... 19,000 931,000
American Home Products Corp. ................ 15,700 884,106
Bristol-Meyers Squibb Co. ................... 12,200 1,632,513
Eli Lilly & Co. ............................. 13,200 1,173,150
Johnson & Johnson Co. ....................... 16,600 1,392,325
Merck & Co., Inc. ........................... 14,600 2,156,238
Pfizer, Inc. ................................ 16,000 2,007,000
Pharmacia & Upjohn, Inc. .................... 6,400 362,400
Schering-Plough Corp. ....................... 18,400 1,016,600
Warner-Lambert Co. .......................... 10,100 759,394
-----------
12,314,726
-----------
PHOTOGRAPHIC EQUIPMENT & SUPPLIES -- 0.2%
Eastman Kodak Co. ........................... 4,100 295,200
-----------
PRECISION INSTRUMENTS & MEDICAL SUPPLIES -- 1.0%
Baxter International, Inc. .................. 3,500 225,094
Becton, Dickinson & Co. ..................... 3,200 136,600
Boston Scientific Corp.* .................... 5,400 144,788
Guidant Corp. ............................... 2,000 220,500
Medtronic, Inc. ............................. 6,000 445,500
-----------
1,172,482
-----------
PRINTING & PUBLISHING -- 0.6%
Gannett Co., Inc. ........................... 3,800 251,513
McGraw-Hill Cos., Inc. ...................... 1,300 132,438
New York Times Co. .......................... 2,600 90,188
R.R. Donnelley & Sons Co. ................... 2,000 87,625
Tribune Co. ................................. 1,600 105,600
-----------
667,364
-----------
The accompanying notes are an integral part of the financial statements.
20
<PAGE>
WT INVESTMENT TRUST I / BROAD MARKET EQUITY PORTFOLIO
- -----------------------------------------------------
INVESTMENTS / DECEMBER 31, 1998 (UNAUDITED) -- CONTINUED
================================================================================
VALUE
SHARES (NOTE 2)
------ ----------
RUBBER & PLASTICS -- 0.0%
Goodyear Tire & Rubber Co. ...... 1,100 $ 55,481
----------
TELECOMMUNICATIONS EQUIPMENT-- 2.4%
Lucent Technologies, Inc. ....... 15,700 1,727,000
Motorola, Inc. .................. 7,500 457,969
Northern Telecom Ltd. ........... 8,220 412,028
Scientific Atlanta, Inc. ........ 2,000 45,625
Tellabs, Inc.* .................. 2,500 171,406
Uniphase Corp. .................. 1,000 69,375
----------
2,883,403
----------
TEXTILES & APPAREL -- 0.2%
Nike, Inc. ...................... 3,900 158,194
VF Corp. ........................ 1,600 75,000
----------
233,194
----------
TOBACCO -- 1.4%
Philip Morris Cos., Inc. ........ 29,900 1,599,650
----------
TRANSPORTATION EQUIPMENT-- 1.7%
Dana Corp. ...................... 2,300 94,013
Ford Motor Co. .................. 14,500 850,969
General Motors Corp. ............ 8,900 636,906
Rockwell International Corp. .... 2,900 140,831
Tenneco, Inc. ................... 2,300 78,344
Textron, Inc. ................... 2,300 174,656
TRW, Inc. ....................... 1,600 89,900
----------
2,065,619
----------
TOTAL MANUFACTURING ............................... 58,050,795
----------
MINING -- 6.2%
ALUMINUM -- 0.2%
Alcan Aluminum Ltd. ............. 3,100 83,894
Aluminum Co. of America ......... 2,400 178,950
----------
262,844
----------
CRUDE PETROLEUM & NATURAL GAS-- 1.5%
Anadarko Petroleum Corp. ........ 1,300 40,138
Burlington Resources, Inc. ...... 3,200 114,600
Halliburton Co. ................. 6,300 186,638
Phillips Petroleum Co. .......... 3,600 153,450
Royal Dutch Petroleum Co. ....... 25,600 1,225,600
Unocal Corp. .................... 3,400 99,238
----------
1,819,664
----------
MISCELLANEOUS METAL ORES-- 0.1%
Barrick Gold Corp. .............. 5,000 97,500
----------
VALUE
SHARES (NOTE 2)
------ ----------
PETROLEUM REFINING -- 4.4%
Amoco Corp. .......................... 11,400 $ 688,275
Atlantic Richfield Co. ............... 4,300 280,575
Chevron Corp. ........................ 7,800 646,913
Coastal Corp. ........................ 2,800 97,825
Exxon Corp. .......................... 29,200 2,135,250
Mobil Corp. .......................... 9,300 810,263
Texaco, Inc. ......................... 7,200 380,700
USX - Marathon Group ................. 3,900 117,488
----------
5,157,289
----------
TOTAL MINING ........................................... 7,337,297
----------
SERVICES -- 6.2%
AMUSEMENT & RECREATIONAL SERVICES -- 0.6%
Walt Disney Co. ...................... 24,600 738,000
----------
BUSINESS SERVICES -- 1.4%
America Online, Inc. ................. 3,800 550,050
American Management Systems,
Inc.* .............................. 1,000 40,000
Automatic Data Processing, Inc. ...... 3,700 296,694
Cendant Corp.* ....................... 10,000 190,625
First Data Corp. ..................... 6,000 190,125
Interpublic Group of Cos., Inc. ...... 1,600 127,600
MBIA, Inc. ........................... 1,200 78,675
Omnicom Group, Inc. .................. 2,100 121,800
----------
1,595,569
----------
COMPUTER SERVICES -- 3.5%
BMC Software, Inc. ................... 3,200 142,600
Computer Associates International,
Inc. ............................... 7,900 336,738
Computer Sciences Corp. .............. 2,000 128,875
Dell Computer Corp.* ................. 15,000 1,097,813
Electronic Data Systems Corp. ........ 6,100 306,525
Gateway 2000, Inc. ................... 2,500 127,969
HBO & Co. ............................ 5,800 166,388
IMS Health Inc. ...................... 2,300 173,506
Netscape Communications Corp. ........ 8,900 540,675
Nielsen Media Research Inc. .......... 766 13,788
Oracle Corp.* ........................ 12,400 534,750
Parametric Technology Corp.* ......... 3,400 55,675
Peoplesoft, Inc. .................... 2,750 52,078
Sun Microsystems, Inc.* .............. 4,700 402,438
----------
4,079,818
----------
HOTELS, OTHER LODGING PLACES -- 0.2%
Hilton Hotels Corp. .................. 3,400 65,025
Marriott International, Inc.
(A Shares) ......................... 3,400 98,600
Mirage Resorts, Inc.* ................ 2,500 37,344
Sodexho Marriott Services, Inc. ...... 425 11,767
----------
212,736
----------
The accompanying notes are an integral part of the financial statements.
21
<PAGE>
WT INVESTMENT TRUST I / BROAD MARKET EQUITY PORTFOLIO
- -----------------------------------------------------
INVESTMENTS / DECEMBER 31, 1998 (UNAUDITED) -- CONTINUED
================================================================================
VALUE
SHARES (NOTE 2)
------ ----------
MEDICAL & HEALTH SERVICES -- 0.1%
Healthsouth Corp.* ................... 5,400 $ 83,363
Tenet Healthcare Corp.* .............. 2,000 52,500
----------
135,863
----------
PERSONAL SERVICES -- 0.1%
Service Corp. International .......... 3,400 129,413
----------
SANITARY SERVICES -- 0.3%
Browning-Ferris Industries, Inc. ..... 2,900 82,469
Waste Management, Inc. .............. 6,422 299,426
----------
381,895
----------
TOTAL SERVICES ......................................... 7,273,294
----------
TRANSPORTATION -- 1.1%
AMR Corp.* ........................... 2,400 142,500
Burlington Northern Santa Fe ......... 6,300 212,625
CSX Corp. ............................ 3,000 124,500
Delta Air Lines, Inc. ................ 2,000 104,000
FDX Corp.* ........................... 2,000 178,000
Norfolk Southern Corp. ............... 5,100 161,606
Southwest Airlines ................... 4,650 104,334
Union Pacific Corp. .................. 3,400 153,213
USAir Group, Inc.* ................... 1,300 67,600
----------
TOTAL TRANSPORTATION ................................... 1,248,378
----------
WHOLESALE & RETAIL TRADE -- 7.2%
MISCELLANEOUS RETAIL STORES -- 1.3%
Costco Companies, Inc.* .............. 2,900 209,344
CVS Corp. ............................ 4,800 264,000
Dayton Hudson Corp. .................. 6,000 325,500
Dollar General Corp. ................. 2,200 51,975
Johnson Controls, Inc. ............... 1,000 59,000
Linens 'N Things, Inc.** ............. 1,100 43,588
Rite Aid Corp. ....................... 3,200 158,600
Staples, Inc. * ...................... 3,500 152,906
Walgreen Co. ......................... 5,200 304,525
----------
1,569,438
----------
RETAIL APPAREL & ACCESSORY STORES -- 0.7%
Abercrombie & Fitch Co.* ............. 550 38,913
Gap, Inc. ............................ 7,650 430,313
Kohls Corp. .......................... 1,900 116,731
Limited, Inc. ........................ 3,700 107,763
TJX Companies, Inc. .................. 4,000 116,000
----------
809,720
----------
RETAIL BUILDING MATERIAL-- 1.1%
Home Depot, Inc. ..................... 17,500 1,070,781
Lowe's Cos., Inc. .................... 4,800 245,700
----------
1,316,481
----------
RETAIL EATING & DRINKING PLACES -- 0.6%
McDonald's Corp. ..................... 8,700 666,638
----------
VALUE
SHARES (NOTE 2)
------ ----------
RETAIL FOOD STORES -- 0.6%
Albertson's, Inc. .................. 3,300 $ 210,169
American Stores Co. ................ 3,700 136,669
Kroger Co.* ........................ 4,100 248,050
Winn Dixie Stores, Inc. ............ 2,100 94,238
------------
689,126
------------
RETAIL - FAMILY CLOTHING STORES -- 2.6%
Federated Department Stores, Inc.* . 2,900 126,331
J.C. Penney Co., Inc. .............. 3,400 159,375
K Mart Corp.* ...................... 6,600 101,063
May Department Stores Co. .......... 3,200 193,200
Sears Roebuck & Co. ................ 4,900 208,250
Wal-Mart Stores, Inc. .............. 27,700 2,255,819
------------
3,044,038
------------
WHOLESALE - CHEMICALS & DRUGS -- 0.1%
Cardinal Health, Inc. .............. 2,100 159,338
------------
WHOLESALE MISCELLANEOUS -- 0.2%
Fortune Brands, Inc. ............... 2,400 75,900
Genuine Parts Co. .................. 2,500 83,594
Masco Corp. ........................ 4,600 132,250
------------
291,744
------------
TOTAL WHOLESALE & RETAIL TRADE ......................... 8,546,523
------------
TOTAL COMMON STOCK
(COST $87,356,833) ................................... 117,305,942
------------
SHORT-TERM INVESTMENTS -- 0.2%
Samson Street Fund -
Money Market ..................... 128,512 128,512
Temp Cash Fund - Dollar Series ..... 128,511 128,511
------------
TOTAL SHORT TERM INVESTMENTS
(COST $257,023) ...................................... 257,023
------------
TOTAL INVESTMENTS -- 99.9%
(COST $87,613,856)(DAGGER) ............................... 117,562,965
LIABILITIES IN EXCESS OF ASSETS -- 0.1% ..................... 119,311
------------
NET ASSETS -- 100.0% ........................................ $117,682,276
============
* Non-income producing security
(DAGGER) The cost for Federal income tax purposes is $86,294,446. At December
31, 1998, net unrealized appreciation was $31,268,519. This consisted of
aggregate gross unrealized appreciation for all securities for which there
was an excess of market value over tax cost of $34,613,751, and aggregate
gross unrealized depreciation for all securities for which there was an
excess of tax cost over market value of $3,345,232.
The accompanying notes are an integral part of the financial statements.
22
<PAGE>
WT INVESTMENT TRUST I
- ---------------------
FINANCIAL STATEMENTS
================================================================================
STATEMENTS OF ASSETS AND LIABILITIES
December 31, 1998 (Unaudited)
<TABLE>
<CAPTION>
MONEY MARKET SHORT/INTERMEDIATE BROAD MARKET
SERIES BOND SERIES EQUITY SERIES
------------------------------------------------------------
<S> <C> <C> <C>
ASSETS:
Investment in securities, at value* (Note 2) $405,745,992 $ 63,278,424 $117,562,965
Receivable for beneficial interest sold .... -- 34,254 67,113
Dividends and interest receivable .......... 2,488,399 743,301 120,650
------------------------------------------------------------
Total assets ............................... 408,234,391 64,055,979 117,750,728
------------------------------------------------------------
LIABILITIES:
Accrued management fee (Note 4) ............ 40,315 11,926 59,900
Other accrued expenses (Note 4) ............ 30,488 16,459 8,552
------------------------------------------------------------
Total liabilities .......................... 70,803 28,385 68,452
------------------------------------------------------------
NET ASSETS ................................. $408,163,588 $ 64,027,594 $117,682,276
============================================================
<FN>
* Investments at cost ...................... $405,745,992 $ 61,685,518 $ 87,613,856
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
23
<PAGE>
WT INVESTMENT TRUST I
- ---------------------
FINANCIAL STATEMENTS -- CONTINUED
================================================================================
STATEMENTS OF OPERATIONS
For the Six-Month Period Ended December 31, 1998 (Unaudited)
<TABLE>
<CAPTION>
MONEY MARKET SHORT/INTERMEDIATE BROAD MARKET
SERIES BOND SERIES EQUITY SERIES
------------------------------------------------------------
<S> <C> <C> <C>
INCOME:
Dividends .......................................... $ -- $ -- $ 759,483
Interest ........................................... 9,586,394 1,801,310 55,386
------------------------------------------------------------
Total Income ....................................... 9,586,394 1,801,310 814,869
------------------------------------------------------------
EXPENSES:
Management fee (Note 4) ............................ 353,127 126,388 372,768
Administration fee (Note 4) ........................ 45,463 28,811 31,283
Accounting fee (Note 4) ............................ 41,667 23,996 26,623
Custodian fee (Note 4) ............................. 19,193 7,780 8,734
Trustees' fees (Note 4) ............................ 2,391 2,254 2,391
Professional fees .................................. 7,611 4,817 4,462
Other .............................................. 2,430 886 2,437
------------------------------------------------------------
Total expenses before fee waivers ............... 471,882 194,932 448,698
Management fee waived (Note 4) .................. (191,787) (66,500) (52,909)
------------------------------------------------------------
Total Expenses, Net ............................. 280,095 128,432 395,789
------------------------------------------------------------
Net investment income .............................. 9,306,299 1,672,878 419,080
------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investment transactions ....... -- 76,028 552,622
Net realized gain on future contracts .............. -- -- 49,285
Net change in unrealized appreciation of investments -- 1,162,748 9,690,503
------------------------------------------------------------
Net gain on investments ............................ -- 1,238,776 10,292,410
------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS .... $ 9,306,299 $ 2,911,654 $ 10,711,490
============================================================
</TABLE>
The accompanying notes are an integral part of the financial statements.
24
<PAGE>
WT INVESTMENT TRUST I
- ---------------------
FINANCIAL STATEMENTS -- CONTINUED
================================================================================
STATEMENTS OF CHANGES IN NET ASSETS
For the Six-Month Period Ended December 31, 1998 (Unaudited)
<TABLE>
<CAPTION>
MONEY MARKET SHORT/INTERMEDIATE BROAD MARKET
SERIES BOND SERIES EQUITY SERIES
--------------------------------------------------------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income ............................ $ 9,306,299 $ 1,672,878 $ 419,080
Net realized gain on investment transactions ..... -- 76,028 552,622
Net realized gain on future contracts ............ -- -- 49,285
Net change in unrealized appreciation
of investments ................................ -- 1,162,748 9,690,503
--------------------------------------------------------------
Net increase in net assets resulting
from operations .................................... 9,306,299 2,911,654 10,711,490
--------------------------------------------------------------
Transactions in beneficial interests:
Contributions .................................... 1,209,046,785 2,532,984 6,287,137
Withdrawals ...................................... (1,051,829,184) (2,570,532) (9,475,834)
--------------------------------------------------------------
Net increase (decrease) in net assets from transactions
in interests ....................................... 157,217,601 (37,548) (3,188,697)
--------------------------------------------------------------
Total increase in net assets .......................... 166,523,900 2,874,106 7,522,793
NET ASSETS:
Beginning of period .............................. 241,639,688 61,153,488 110,159,483
--------------------------------------------------------------
End of period .................................... $ 408,163,588 $ 64,027,594 $ 117,682,276
==============================================================
</TABLE>
The accompanying notes are an integral part of the financial statements.
25
<PAGE>
WT INVESTMENT TRUST I
- ---------------------
FINANCIAL STATEMENTS -- CONTINUED
================================================================================
STATEMENTS OF CHANGES IN NET ASSETS
For the Fiscal Year Ended June 30, 1998
<TABLE>
<CAPTION>
MONEY MARKET SHORT/INTERMEDIATE BROAD MARKET
SERIES BOND SERIES EQUITY SERIES
--------------------------------------------------------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income ............................. $ 26,961,014 $ 8,206,531 $ 863,395
Net realized gain (loss) on investment transactions (2,895) 3,220,001 13,804,461
Net realized loss on call options written ......... -- -- (184,915)
Net realized gain on futures contracts ............ -- -- 325,669
Net change in unrealized appreciation
(depreciation) on investments .................. -- 279,752 10,926,841
--------------------------------------------------------------
Net increase in net assets resulting
from operations ..................................... 26,958,119 11,706,284 25,735,451
--------------------------------------------------------------
Transactions in beneficial interests:
Contributions ..................................... 2,802,458,254 144,450,638 14,839,563
Withdrawals ....................................... (3,004,989,325) (203,882,068) (19,204,547)
--------------------------------------------------------------
Net increase (decrease) in net assets from transactions
in interests ........................................ (202,531,071) (59,431,430) (4,364,984)
--------------------------------------------------------------
Total increase (decrease) in net assets ................ (175,572,952) (47,725,146) 21,370,467
NET ASSETS:
Beginning of year ................................. 417,212,640 108,878,634 88,789,016
--------------------------------------------------------------
End of year ....................................... $ 241,639,688 $ 61,153,488 $ 110,159,483
==============================================================
</TABLE>
The accompanying notes are an integral part of the financial statements.
26
<PAGE>
WT INVESTMENT TRUST I
- ---------------------
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)
================================================================================
1. DESCRIPTION OF THE TRUST. The WT Investment Trust I (the "Trust"), formerly
the Kiewit Investment Trust, is registered under the Investment Company Act
of 1940 (the "1940 Act") as an open-end management investment company
organized as a Delaware business trust on January 23, 1997. The Declaration
of Trust permits the trustees to establish additional series, each of which
is a separate class of shares. The Trust currently has three series of shares
in operation: WT Money Market Series (formerly the "Kiewit Money Market
Series"), WT Short/Intermediate Bond Series (formerly the "Kiewit
Intermediate-Term Bond Series") and WT Broad Market Equity Series (formerly
the "Kiewit Equity Series") (individually and collectively referred to as
"Series"). The investment objectives of the three Series are as follows: the
WT Money Market Series is to provide high current income while maintaining a
stable share price, the WT Short/Intermediate Bond Series is to provide as
high a level of current income as is consistent with reasonable risk; and the
WT Broad Market Equity Series is to achieve long-term capital appreciation.
2. SIGNIFICANT ACCOUNTING POLICIES. The following is a summary of the
significant accounting policies of the Trust. The preparation of financial
statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the
reported amount of assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
SECURITY VALUATION. Securities held by the Series which are listed on a
securities exchange and for which market quotations are available are valued
at the last quoted sale price of the day, or, if there is no such reported
sale, securities are valued at the mean between the most recent quoted bid
and asked prices. Price information for listed securities is taken form the
exchange where the security is primarily traded. Unlisted securities for
which market quotations are readily available are valued at the most recent
bid prices. Securities with a remaining maturity of 60 days or less are
valued at amortized cost, which approximates market value, unless the Trust's
Board of Trustees determines that this does not represent fair value. The WT
Money Market Series values securities utilizing the amortized cost valuation
method which is permitted under Rule 2a-7 under the 1940 Act. This method
involves valuing a portfolio security initially at its cost and thereafter
adjusting for amortization of premium or accretion of discount to maturity.
FEDERAL INCOME TAXES. Each Series is treated as a partnership entity for
Federal income tax purposes. Any interest, dividends and gains or losses of a
Series will be deemed to have been "passed through" to each partner.
Accordingly, no tax provision is recorded for the Trust Series.
INVESTMENT INCOME. All of the net investment income (loss) and realized and
unrealized gains and losses from the security transactions are allocated pro
rata among the investors in the Series on a daily basis.
REPURCHASE AGREEMENTS. Each Series, through the Trust's custodian, receives
delivery of the underlying securities used to collateralize the repurchase
agreements, the market value of which is required to be in an amount at least
equal to 102% of the resale price. Wilmington Trust Company ("WTC"), the
Trust Manager, is responsible for determining that the market value of these
underlying securities is maintained at a level at least equal 102% of the
resale price. In the event of default of the obligation to repurchase, the
Trust has the right to liquidate the collateral and apply the proceeds in
satisfaction of the obligation. Provisions of each agreement require that the
market value of the collateral is sufficient in the event of default;
however, in the event of default or bankruptcy by the other party to the
agreement, realization and/or retention of the collateral may be subject to
legal proceedings.
CALL AND PUT OPTIONS. The WT Short/Intermediate Bond Series and the WT Broad
Market Equity Series each may write and/or purchase exchange-traded call
options and purchase exchange-traded put options on securities in the Series.
When a Series writes a call option, an amount equal to the premium received
is reflected as a liability. The amount of the liability is subsequently
"marked to market" to reflect the current market value of the option written.
If an option which a Series has written expires on its stipulated expiration
date, or if a series enters into a closing purchase transaction, the Series
realizes a gain (or loss if the cost of the closing transaction exceeds the
premium received when the option is sold), and the liability related to such
option is extinguished. If a call option which a Series has written is
exercised, the Series realizes a gain or loss from the sale of the underlying
security, and the proceeds from which are increased by the premium originally
received.
27
<PAGE>
WT INVESTMENT TRUST I
- ---------------------
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED) -- CONTINUED
================================================================================
FUTURES TRANSACTIONS. Certain Series may enter into futures contracts subject
to certain limitations. Upon entering into a futures contract, the Series is
required to deposit cash or pledge U.S. Government securities as margin.
Subsequent payments, which are dependent on the daily fluctuations in the
value of the underlying security or securities, are made or received by the
Series each day (daily variation margin) and are recorded as unrealized gains
or losses until the contracts are closed. When the contracts are closed, the
Series records a realized gain or loss equal to the difference between the
proceeds from (or cost of) the closing transaction and the Series' basis in
the contracts. Risks of entering into futures contracts include the
possibility that there will not be a perfect price correlation between the
futures contracts and the underlying securities, and that a lack of liquidity
for futures contracts could exist in the secondary market, resulting in an
inability to close a futures position prior to its maturity date. The
purchase of a futures contract involves the risk that a Series could lose
more than the original margin deposit required to initiate a futures
transaction up to the amount of the contract.
OTHER. Investment security transactions are accounted for on a trade date
basis. Each Series uses the specific identification method for determining
realized gain and loss on investments for both financial and Federal income
tax reporting purposes.
3. INVESTMENT SECURITIES. During the six-month period ended December 31, 1998,
purchases and sales of investment securities (excluding short-term
investments) aggregated as follows:
SHORT/INTERMEDIATE BROAD MARKET
BOND EQUITY
--------------------------------
Purchases .................................. $9,086,648 $5,957,964
Sales ...................................... 7,170,547 4,746,209
Portfolio Turnover Rate:
Six-Month Period Ended December 31, 1998 . 11.75% 4.57%
Fiscal Year 1998 ......................... 236.36% 93.08%
Fiscal Year 1997 ......................... 51.57% 26.33%
4. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES. Effective October 20,
1998, the Trust, on behalf of each Series, employs WTC, a wholly owned
subsidiary of Wilmington Trust Corporation, to furnish investment advisory
and other services to the Trust. Pursuant to an investment management
agreement with the Trust with respect to each Series, WTC manages the
investment and reinvestment of their assets, provides the Trust with records
concerning WTC's activities which the Trust is required to maintain, and
renders regular reports to the Trust officers and the Board of Trustees. For
its services under the investment management agreement for each Series, WTC
receives fees from the Series at the following annual rates of their average
monthly net assets, WT Money Market Series - 0.20%; WT Short/Intermediate
Bond Series - 0.40%; and WT Broad Market Equity Series - 0.70. Prior to
October 20, 1998, Kiewit Investment Management Corporation provided services
under the investment management agreement.
WTC has agreed to waive all or a portion of its management fee and assume
certain fund expenses in an amount that will limit annual operating expenses
(excluding taxes, extraordinary expenses, brokerage commissions and interest)
to not more than the following percentage of the average daily net assets of
each WT Mutual Fund Portfolio: WT Money Market Portfolio - 0.20%, WT
Short/Intermediate Bond Portfolio - 0.50%; and WT Broad Market Equity
Portfolio - 0.80%. These undertakings may be amended or rescinded at any time
in the future.
PFPC Inc. ("the PFPC"), an indirect wholly-owned subsidiary of PNC Bank
Corp., a multi-bank holding company, serves as Administrator to the Trust and
Fund pursuant to separate Administration Agreements with the Fund and the
Trust. As Administrator, PFPC is responsible for service such as financial
reporting, compliance monitoring and corporate management. For the services
provided, PFPC receives a monthly administration fee from the Trust, on
behalf of each Series. Each Series pays a proportionate share of a
complex-wide annual fee of 0.015% of the Trust's aggregate total average
daily net assets in excess of $125 million. This asset based fee is
determined on a total average daily net asset basis, and is subject to
prescribed minimums.
28
<PAGE>
WT INVESTMENT TRUST I
- ---------------------
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED) -- CONTINUED
================================================================================
PFPC determines the net asset value of each Series and provides accounting
services to the Trust pursuant an Accounting Services Agreement with the
Trust on behalf of each Series. For its services, PFPC receives from the
Trust, on behalf of each Series, the Series' proportionate share of a
complex-wide annual fee of 0.015% of the Trust's aggregate total average
daily net assets in excess of $100 million. This asset-based fee is
determined on a total average daily net asset basis, and is subject to
prescribed fixed minimums.
PNC Bank, N.A. services as custodian to the Fund and the Trust.
Independent Trustees are each paid an annual fee of $5,000 from the Trust,
plus $250 per Series per meeting attended and reimbursed travel expenses in
connection with meetings. Certain officers and trustees of the Trust are also
officers and/or directors of WTC.
29
