[GRAPHICS OMITTED]
WILMINGTON
FUNDS
FIXED INCOME PORTFOLIOS
O SHORT/INTERMEDIATE BOND
O INTERMEDIATE BOND
O MUNICIPAL BOND
ANNUAL
JUNE 30, 2000
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WILMINGTON FUNDS -- FIXED INCOME PORTFOLIOS
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PRESIDENT'S MESSAGE
--------------------------------------------------------------------------------
DEAR SHAREHOLDER:
The last year has been a tumultuous one for the economy and the financial
markets. Since our last annual report the Federal Reserve (the "Fed") has raised
interest rates six times by a total of 175 basis points. The Central Bank's main
concerns were the rapid economic expansion and the build-up of inflationary
pressures. In the latter part of 1999 and early 2000, the economy was
registering a growth rate between 6% and 7%. This rate is well in excess of the
Fed's desired annual growth rate of no more than 3.5%. This targeted growth rate
is the result of careful economic analysis which found that sustained growth in
excess of 3.5% would result in an eventual increase in inflation, especially
combined with a low unemployment rate.
Inflation has also been problematic as energy prices have risen
dramatically over the last year (Gasoline prices nationwide are up 85%).
Moreover, the "core" inflation rate has also risen even though it is still at a
fairly low rate. The trend, however, is clearly in the wrong direction.
For these reasons, the Fed has decided to further increase interest rates
to slow down the economy and thereby thwart the rise in inflation. At present,
the evidence suggests that the Fed is beginning to succeed. Retail sales,
housing sales and overall industrial activity are clearly showing signs of
weakness. The one-two combination of higher interest rates and lower equity
prices has had a negative effect on consumer spending patterns. The remaining
question is whether this slowdown is for real and, if so, how severe is it. It
is too early to provide any definitive answer at this time, but we believe that
economic growth in the second half of 2000 will be slower than that of the first
half.
While it took some time, the financial markets finally reacted to higher
interest rates this spring. Perhaps "reacted" is a bit of an understatement,
especially for the NASDAQ Index. From the all-time highs earlier this year the
S&P 500 Index fell 18%, while the NASDAQ composite fell by more than 37%. In
many regards, this was a reasonably normal correction. Not so normal were the
speed and the severity, especially for the NASDAQ. Many stocks in this index
were trading at enormous (even uncalculateable) price-earnings ratios. When it
became apparent that economic growth, and thereby profits, would also be
slowing, these heavily speculative issues suffered the consequences.
Fortunately for us as shareholders of the Wilmington Funds, our investment
advisers have many DECADES of investment experience and have witnessed these
types of markets in the past. Their experience is invaluable toward achieving
investment success. We are quite proud of the investment results described
herein and are confident that you will be as well.
MANAGEMENT'S DISCUSSION OF PORTFOLIO PERFORMANCE
WILMINGTON SHORT/INTERMEDIATE BOND AND INTERMEDIATE BOND PORTFOLIOS
The two funds have performed well during the past year. The
Short/Intermediate Bond Portfolio had a total return of 4.28% which slightly
exceeded the return of 4.21% earned by the Lehman Intermediate Government/Credit
Index. The Intermediate Bond Portfolio had a total return of 4.72% over the past
12 months which well exceeded the return of 4.29% for the Lehman
Government/Credit Index.
During the past year, the financial markets have experienced two very
different environments. The last 6 months of 1999 were marked by both the Fed's
commencing its rate increase campaign and the slowing of activity in
anticipation of Y2K. The Fed's interest rate actions kept the bond market under
wraps for most of the last 6 months of 1999, as returns were barely positive
over this period. Income returns were just able to outstrip declining principal
values caused by rising interest rates. The new issue market effectively shut
down by September as many corporations sought to avoid any complications with
the end of the year. This made for a period of low volatility that the
Portfolios navigated primarily by keeping their interest rate exposure under
market levels and emphasizing yield
1
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PRESIDENT'S MESSAGE -- CONTINUED
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enhancement through shorter maturity securities. This relatively benign
environment changed dramatically after the turn of the millenium.
The first half of 2000 will be remembered for the many unique occurences
that collectively created a very challenging environment. The Treasury market
began to shrink in size as the budget surplus was used to buy back outstanding
Treasury issues. This caused the Treasury curve to invert with shorter
maturities yielding more than longer maturities. At the same time, the Fed
returned to its task of raising interest rates which further propelled
short-term rates higher. The impact of a slowing economy was reflected in higher
costs for non-Treasury debt. While the Treasury curve inverted, the yield curves
for the non-Treasury sectors of the fixed income market continued to be
positively shaped with longer-term securities yielding more than shorter-term
securities. The changing conditions in the Treasury market caused trading
difficulties for many traders in the corporate bond and mortgage backed markets
as hedging strategies failed. This caused liquidity in the market place to
decline and placed a premium on owning larger, higher quality issues. The
government agency market was also hit with credit questions sparked by hearings
in Congress on the Baker Bill. This legislation would eliminate credit lines
between the government and the agencies causing these entities to fend more for
themselves to maintain their credit standing. This uncertainty caused spreads on
this sector to widen against the Treasury market. Given these numerous events,
the strategies that worked best during the last six months focused more on yield
curve and sector positioning rather than interest rate sensitivity.
The Portfolios were well positioned to take advantage of this environment.
For the past few quarters we have added yield by focusing on the shorter
maturity corporate bond market. This has enabled us to keep the income
generation relatively high while limiting our exposure to our growing concerns
over credit quality. At the same time, our exposure to the Treasury market has
been concentrated in our longer maturity holdings. As the Treasury curve
inverted, these securities outperformed all other asset classes and accounted
for much of our strong performance, particularly in the Intermediate Portfolio.
2
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PRESIDENT'S MESSAGE -- CONTINUED
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The following graph compares the Short/Intermediate Bond Portfolio, the
Merrill Lynch 1-10 Year U.S. Treasury Index ("ML 1-10 Yr.") and the Consumer
Price Index ("CPI"), since the Portfolio's commencement of operations on April
2, 1991.
[GRAPHICS OMITTED]
EDGAR REPRESENTATION OF PLOT POINTS USED IN PRINTED GRAPHIC
SHORT/INTERMEDIATE BOND PORTFOLIO
COMPARISON OF CHANGE IN VALUE OF A HYPOTHETICAL $10,000 INVESTMENT*
Short/Intermediate
Bond Portfolio ML 1-10 Yr. CPI
4/2/91 $10,000 $10,000 $10,000
6/30/91 10,128 10,173 10,074
6/30/92 11,364 11,474 10,385
6/30/93 12,474 12,632 10,697
6/30/94 12,405 12,617 10,963
6/30/95 13,657 13,852 11,296
6/30/96 14,248 14,529 11,607
6/30/97 15,220 15,533 11,874
6/30/98 16,508 16,846 12,073
6/30/99 17,076 17,604 12,310
6/30/00 17,807 18,437 12,762
Average Annual Total Return
------------------------------------------------------------------
SINCE
INCEPTION
1 YEAR 5 YEAR 12/31/90
------ ------ ---------
Fund 4.3% 5.5% 6.4%
Index 4.7% 5.9% 6.8%
CPI 3.7% 2.5% 2.7%
----------
* PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. AN
INVESTMENT IN THE PORTFOLIO 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. THE VALUES SHOWN REFLECT A HYPOTHETICAL INITIAL
INVESTMENT OF $10,000 WITH DIVIDENDS REINVESTED. TOTAL RETURN WOULD HAVE BEEN
LOWER HAD CERTAIN FEES AND EXPENSES NOT BEEN VOLUNTARILY WAIVED AND/OR
REIMBURSED.
The following graph compares the Intermediate Bond Portfolio and its
predecessor, the Bond Fund (a collective investment fund), with that of the
Merrill Lynch U.S. Treasury Master Index ("ML U.S. Treasury") and the Consumer
Price Index ("CPI"), since the Portfolio's commencement of operations on
December 31, 1990. The Bond Fund's performance has been adjusted to reflect the
annual deduction of fees and expenses applicable to shares of the Intermediate
Bond Portfolio (i.e., adjusted to reflect anticipated expenses, absent
investment advisory fee waivers). The Bond Fund was not a registered investment
company under the Investment Act of 1940 (the "1940 Act") and therefore was not
subject to the investment restrictions, limitations and diversification
requirements imposed by the 1940 Act and the Internal Revenue Code of 1986, as
amended. If the Bond Fund had been registered under the 1940 Act, its
performance may have been different.
3
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--------------------------------------------------------------------------------
PRESIDENT'S MESSAGE -- CONTINUED
--------------------------------------------------------------------------------
[GRAPHICS OMITTED]
EDGAR REPRESENTATION OF PLOT POINTS USED IN PRINTED GRAPHIC
INTERMEDIATE BOND PORTFOLIO
COMPARISON OF CHANGE IN VALUE OF A HYPOTHETICAL $10,000 INVESTMENT*
Intermediate
Bond Portfolio ML U.S. Treasury CPI
12/31/90 $10,000 $10,000 $10,000
6/30/91 10,231 10,501 10,235
6/30/92 11,667 11,938 10,551
6/30/93 13,174 13,485 10,868
6/30/94 12,855 13,304 11,139
6/30/95 14,450 14,908 11,478
6/30/96 14,964 15,573 11,794
6/30/97 16,028 16,718 12,065
6/30/98 17,772 18,610 12,268
6/30/99 18,142 19,178 12,508
6/30/00 18,998 20,206 12,967
Average Annual Total Return
-----------------------------------------------------------------------
SINCE
1 YEAR 5 YEAR INCEPTION 12/31/90
------ ------ ------------------
Fund 4.7% 5.6% 7.0%
Index 5.4% 6.3% 7.7%
CPI 3.7% 2.5% 2.8%
----------
* PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. AN
INVESTMENT IN THE PORTFOLIO 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. THE VALUES SHOWN REFLECT A HYPOTHETICAL INITIAL
INVESTMENT OF $10,000 WITH DIVIDENDS REINVESTED. TOTAL RETURN WOULD HAVE BEEN
LOWER HAD CERTAIN FEES AND EXPENSES NOT BEEN VOLUNTARILY WAIVED AND/OR
REIMBURSED. SEE FINANCIAL HIGHLIGHTS ON PAGE 12.
WILMINGTON MUNICIPAL BOND PORTFOLIO
The Municipal Bond Portfolio is an intermediate duration, high quality fund
designed to produce a high level of income that is exempt from federal income
taxes while seeking preservation of capital. The basic strategy of the Portfolio
is to identify and purchase the undervalued sectors of the municipal market. The
Portfolio normally will be fully invested with an average maturity in the 4 to 8
year range.
Strength in the domestic economy kept the Fed active during the year. The Fed
continued to raise the federal funds and discount rates to try to temper the
robust economy. At the same time, the budget surplus and Treasury buybacks
caused the Treasury yield curve to invert during the first half of 2000. Signs
of economic slowing began to emerge in early June 2000 signaling that some of
the Fed's actions were beginning to have an impact, but the caution flag is
still waving.
While rising interest rates negatively affected the municipal market, lack of
supply and individual retail buyers positively impacted the market. These
opposing forces helped create an environment of volatility for the entire year.
Over the fiscal year, the municipal yield curve flattened as short-term yields
rose. This was primarily in the 1 to
4
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PRESIDENT'S MESSAGE -- CONTINUED
--------------------------------------------------------------------------------
3-year range where the Portfolio had little exposure. During this time period,
our strategy was to keep the Portfolio's duration neutral versus the benchmark
index. The lack of supply, which was down over 22% versus the same period last
year, also caused quality spreads to narrow. We took advantage of this
opportunity to upgrade the quality of the Portfolio without sacrificing yield.
On June 30, 2000, the Portfolio had an average maturity of 7.7 years, a duration
of 5.3 years, and an average coupon of 5.5%, versus the target Merrill Lynch
Index of 7.0 years, 5.5 years and 5.4%, respectively.
The following graph illustrates the performance of the Municipal Bond Portfolio,
the Merrill Lynch Intermediate Municipal Index ("ML Muni Index") and the
Consumer Price Index ("CPI"), since the Portfolio's commencement of operations
on November 1, 1993.
[GRAPHICS OMITTED]
EDGAR REPRESENTATION OF PLOT POINTS USED IN PRINTED GRAPHIC
MUNICIPAL BOND PORTFOLIO
COMPARISON OF CHANGE IN VALUE OF A HYPOTHETICAL $10,000 INVESTMENT*
Municipal
Bond Portfolio Ml Muni Index CPI
10/31/93 $10,000 $10,000 $10,000
6/30/94 9,745 9,754 10,158
6/30/95 10,321 10,589 10,467
6/30/96 11,067 11,185 10,755
6/30/97 11,773 11,970 11,002
6/30/98 12,543 12,839 11,187
6/30/99 12,818 13,187 11,406
6/30/00 13,254 13,769 11,825
Average Annual Total Return
------------------------------------------------------------------
1 YEAR 5 YEAR INCEPTION
------ ------ --------
Fund 3.4% 5.1% 4.3%
Index 4.4% 5.4% 4.9%
CPI 3.7% 2.5% 2.6%
----------
* PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. AN
INVESTMENT IN THE PORTFOLIO 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. THE VALUES SHOWN REFLECT A HYPOTHETICAL INITIAL
INVESTMENT OF $10,000 WITH DIVIDENDS REINVESTED. TOTAL RETURN WOULD HAVE BEEN
LOWER HAD CERTAIN FEES AND EXPENSES NOT BEEN VOLUNTARILY WAIVED AND/OR
REIMBURSED. SEE FINANCIAL HIGHLIGHTS ON PAGE 13.
We invite your comments and questions and thank you for your investment in the
Wilmington Fixed Income Portfolios. We look forward to reviewing our investment
outlook and strategy with you in our next report to shareholders.
Sincerely,
/s/ ROBERT J. CHRISTIAN
Robert J. Christian
August 9, 2000 President
5
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--------------------------------------------------------------------------------
FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 2000
<TABLE>
<CAPTION>
SHORT/
INTERMEDIATE INTERMEDIATE MUNICIPAL
BOND PORTFOLIO BOND PORTFOLIO BOND PORTFOLIO
-------------- -------------- --------------
<S> <C> <C> <C>
ASSETS:
Investment in Series, at value ......................................... $140,767,725 $79,712,646 $16,071,430
Receivable for Portfolio shares sold ................................... 3,010 13,810 --
Receivable for investment in Series withdrawn .......................... 17,056 130,000 --
Other assets ........................................................... 1,353 38,288 10,644
------------ ----------- -----------
Total assets ........................................................... 140,789,144 79,894,744 16,082,074
------------ ----------- -----------
LIABILITIES:
Dividends payable ...................................................... 697,816 413,716 60,357
Payable for Portfolio shares redeemed .................................. 17,056 130,000 --
Payable for investment in Series ....................................... 3,010 13,810 --
Other accrued expenses ................................................. 56,666 27,127 12,248
------------ ----------- -----------
Total liabilities ...................................................... 774,548 584,653 72,605
------------ ----------- -----------
NET ASSETS ............................................................. $140,014,596 $79,310,091 $16,009,469
============ =========== ===========
NET ASSETS CONSIST OF:
Paid-in capital ........................................................ $144,750,027 $80,686,950 $16,220,381
Accumulated net realized loss on investments ........................... (1,016,747) (333,695) (73,085)
Net unrealized appreciation (depreciation) of investments .............. (3,718,684) (1,043,164) (137,827)
------------ ----------- -----------
NET ASSETS ............................................................. $140,014,596 $79,310,091 $16,009,469
============ =========== ===========
Shares of beneficial interest outstanding .............................. 14,472,751 8,386,892 1,307,354
============ =========== ===========
NET ASSETS VALUE, offering and redemption price per share
($0.01 par value, unlimited authorized shares):
Institutional shares ................................................ $9.67 $9.46 $12.25
===== ===== ======
</TABLE>
The accompanying notes are an integral part of the financial statements.
6
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--------------------------------------------------------------------------------
FINANCIAL STATEMENTS -- CONTINUED
--------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
For the Fiscal Year Ended June 30, 2000
<TABLE>
<CAPTION>
SHORT/
INTERMEDIATE INTERMEDIATE MUNICIPAL
BOND PORTFOLIO+ BOND PORTFOLIO+ BOND PORTFOLIO+
--------------- --------------- ---------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Investment income from Series ...................... $ 6,080,607 $ 3,897,768 $ 552,730
Expenses from Series ............................... (460,124) (282,556) (62,224)
----------- ----------- ---------
Net investment income from Series ............... 5,620,483 3,615,212 490,506
Interest income .................................... 1,844,804 1,939,076 285,020
----------- ----------- ---------
Total investment income ......................... 7,465,287 5,554,288 775,526
----------- ----------- ---------
EXPENSES:
Advisory fees ...................................... 104,868 104,407 19,054
Administration and accounting fees ................. 65,962 65,830 41,443
Transfer agent fees ................................ 43,560 39,482 6,711
Trustees' fees ..................................... 4,067 4,414 4,194
Shareholder reporting .............................. 54,265 29,479 7,262
Custodian fees ..................................... 6,694 5,961 5,997
Amortization of organizational expenses ............ -- 12,394 --
Registration fees .................................. 20,128 28,460 10,667
Professional fees .................................. 40,428 41,007 --
Other .............................................. 19,897 8,606 3,774
----------- ----------- ---------
Total expenses before fee waivers and
expense reimbursements ....................... 359,869 340,040 99,102
Expenses reimbursed ............................. (140,616) (143,584) (7,707)
Administration/Accounting fees waived ........... -- -- (36,000)
----------- ----------- ---------
Total expenses, net .......................... 219,253 196,456 55,395
----------- ----------- ---------
Net investment income .............................. 7,246,034 5,357,832 720,131
----------- ----------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss on investment transactions ....... (922,085) (299,103) (25,738)
Net change in unrealized appreciation (depreciation)
of investments .................................. (990,660) (945,928) (162,736)
----------- ----------- ---------
Net loss on investments ............................ (1,912,745) (1,245,031) (188,474)
----------- ----------- ---------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS .. $ 5,333,289 $ 4,112,801 $ 531,657
=========== =========== =========
<FN>
+ Reflects operating history of predecessor mutual fund (see note 5).
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
7
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--------------------------------------------------------------------------------
FINANCIAL STATEMENTS -- CONTINUED
--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the Fiscal Year Ended June 30, 2000
<TABLE>
<CAPTION>
SHORT/
INTERMEDIATE INTERMEDIATE MUNICIPAL
BOND PORTFOLIO+ BOND PORTFOLIO+ BOND PORTFOLIO+
--------------- --------------- ---------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income ............................................ $ 7,246,034 $ 5,357,832 $ 720,131
Net realized loss on investments ................................. (922,085) (299,103) (25,738)
Net change in unrealized appreciation (depreciation)
of investments ................................................ (990,660) (945,928) (162,736)
------------ ------------ -----------
Net increase in net assets resulting from operations ............. 5,333,289 4,112,801 531,657
------------ ------------ -----------
Distributions to shareholders:
From net investment income ....................................... (7,246,034) (5,357,832) (720,131)
From net realized gain ........................................... (321,387) (218,273) (93,771)
------------ ------------ -----------
Total distributions ................................................. (7,567,421) (5,576,105) (813,902)
------------ ------------ -----------
Portfolio share transactions (a):
Proceeds from shares sold ........................................ 13,368,306 22,094,931 1,410,916
Net assets from merger (Note 5) .................................. 52,330,738 -- --
Cost of shares issued on reinvestment of
distributions ................................................. 5,902,595 5,316,492 640,185
Cost of shares redeemed .......................................... (18,735,411) (33,935,254) (2,371,645)
------------ ------------ -----------
Net increase (decrease) in net assets from Portfolio share
transactions ..................................................... 52,866,228 (6,523,831) (320,544)
------------ ------------ -----------
Total increase (decrease) in net assets ............................. 50,632,096 (7,987,135) (602,789)
NET ASSETS:
Beginning of year ................................................ 89,382,500 87,297,226 16,612,258
------------ ------------ -----------
End of year ...................................................... $140,014,596 $ 79,310,091 $16,009,469
============ ============ ===========
SHARES SHARES SHARES
------------ ------------ -----------
(a)TRANSACTIONS IN CAPITAL SHARES WERE:
Shares sold ...................................................... 3,113,024 2,328,486 116,635
Shares issued from merger ........................................ 5,358,114 -- --
Shares issued on reinvestment of distributions ................... 475,018 562,705 52,321
Shares redeemed .................................................. (1,428,504) (3,572,894) (193,064)
------------ ------------ -----------
Net increase (decrease) in shares ................................ 7,517,652 (681,703) (24,108)
Shares outstanding-- Beginning of year ........................... 6,955,099 9,068,595 1,331,462
------------ ------------ -----------
Shares outstanding-- End of year ................................. 14,472,751 8,386,892 1,307,354
============ ============ ===========
<FN>
+ Reflects operating history of predecessor mutual fund (see note 5)
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
8
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--------------------------------------------------------------------------------
FINANCIAL STATEMENTS -- CONTINUED
--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the Period November 1, 1998 through June 30, 1999
<TABLE>
<CAPTION>
SHORT/
INTERMEDIATE INTERMEDIATE MUNICIPAL
BOND PORTFOLIO+ BOND PORTFOLIO+ BOND PORTFOLIO+
--------------- --------------- ---------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income .............................. $ 3,385,441 $ 3,482,345 $ 501,010
Net realized gain on investments ................... 215,456 183,813 46,411
Net change in unrealized appreciation (depreciation)
of investments .................................. (3,800,658) (5,092,145) (584,480)
------------ ------------ -----------
Net decrease in net assets resulting from operations (199,761) (1,425,987) (37,059)
------------ ------------ -----------
Distributions to shareholders:
From net investment income ......................... (3,385,441) (3,482,345) (501,010)
From net realized gain ............................. (137,401) (324,537) (86,704)
------------ ------------ -----------
Total distributions ................................... (3,522,842) (3,806,882) (587,714)
------------ ------------ -----------
Portfolio share transactions (a):
Proceeds from shares sold .......................... 6,171,879 8,596,927 592,544
Cost of shares issued on reinvestment of
distributions ................................... 2,846,631 3,358,545 483,448
Cost of shares redeemed ............................ (10,510,779) (12,426,880) (1,418,348)
------------ ------------ -----------
Net decrease in net assets from Portfolio
share transactions ................................. (1,492,269) (471,408) (342,356)
------------ ------------ -----------
Total decrease in net assets .......................... (5,214,872) (5,704,277) (967,129)
NET ASSETS:
Beginning of period ................................ 94,597,372 93,001,503 17,579,387
------------ ------------ -----------
End of period ...................................... $ 89,382,500 $ 87,297,226 $16,612,258
============ ============ ===========
SHARES SHARES SHARES
------------ ------------ ------------
(a)TRANSACTIONS IN CAPITAL SHARES WERE:
Shares sold ........................................ 469,441 860,384 45,897
Shares issued on reinvestment of distributions ..... 215,989 335,086 37,617
Shares redeemed .................................... (802,515) (1,252,157) (110,706)
------------ ------------ -----------
Net decrease in shares ............................. (117,085) (56,687) (27,192)
Shares outstanding-- Beginning of period ........... 7,072,184 9,125,282 1,358,654
------------ ------------ -----------
Shares outstanding-- End of period ................. 6,955,099 9,068,595 1,331,462
============ ============ ===========
<FN>
+ Reflects operating history of predecessor mutual fund (see note 5).
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
9
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--------------------------------------------------------------------------------
FINANCIAL STATEMENTS -- CONTINUED
--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the Fiscal Year Ended October 31, 1998
<TABLE>
<CAPTION>
SHORT/
INTERMEDIATE INTERMEDIATE MUNICIPAL
BOND PORTFOLIO+ BOND PORTFOLIO1+ BOND PORTFOLIO+
--------------- ---------------- ---------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income ............................................. $ 2,931,583 $ 1,795,205 $ 761,371
Net realized gain on investments .................................. 253,210 324,405 118,413
Net change in unrealized appreciation (depreciation)
of investments ................................................. 1,588,123 1,426,841 152,437
----------- ----------- -----------
Net increase in net assets resulting from operations .............. 4,772,916 3,546,451 1,032,221
----------- ----------- -----------
Dividends to shareholders from net investment income ................. (2,931,583) (1,795,205) (761,371)
----------- ----------- -----------
Portfolio share transactions (a):
Proceeds from shares sold ......................................... 11,872,722 4,121,185 907,714
Cost of shares issued in exchange for
securities transferred in-kind (Note 6) ........................ 52,875,813 89,217,926 --
Cost of shares issued on reinvestment of
distributions .................................................. 1,518,469 1,338,735 580,748
Cost of shares redeemed ........................................... (4,966,725) (3,427,589) (1,626,181)
----------- ----------- -----------
Net increase (decrease) in net assets from
Portfolio share transactions ...................................... 61,300,279 91,250,257 (137,719)
----------- ----------- -----------
Total increase in net assets ......................................... 63,141,612 93,001,503 133,131
NET ASSETS:
Beginning of year ................................................. 31,455,760 -- 17,446,256
----------- ----------- -----------
End of year ....................................................... $94,597,372 $93,001,503 $17,579,387
=========== =========== ===========
SHARES SHARES SHARES
----------- ----------- -----------
(a)TRANSACTIONS IN CAPITAL SHARES WERE:
Shares sold ....................................................... 900,342 407,960 70,718
Shares issued in exchange for securities
transferred in-kind (Note 6) ................................... 4,027,047 8,921,710 --
Shares issued on reinvestment of distributions .................... 114,701 131,441 45,302
Shares redeemed ................................................... (375,850) (335,829) (126,618)
----------- ----------- -----------
Net increase (decrease) in shares ................................. 4,666,240 9,125,282 (10,598)
Shares outstanding-- Beginning of year ............................ 2,405,944 -- 1,369,252
----------- ----------- -----------
Shares outstanding-- End of year .................................. 7,072,184 9,125,282 1,358,654
=========== =========== ===========
<FN>
1 For the period June 29, 1998 (commencement of operations) through October 31,
1998 for the Intermediate Bond Portfolio.
+ Reflects operating history of predecessor mutual fund (see note 5).
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
10
<PAGE>
WILMINGTON FUNDS -- FIXED INCOME PORTFOLIOS
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
The following tables include selected data for a share outstanding throughout
each period and other performance information derived from the financial
statements. They should be read in conjunction with the financial statements and
notes thereto.
<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE NOVEMBER 1,
FISCAL YEAR 1998 FOR THE FISCAL YEARS
ENDED THROUGH ENDED OCTOBER 31,
SHORT/INTERMEDIATE BOND PORTFOLIO -- JUNE 30, JUNE 30, -------------------------------------------------------
INSTITUTIONAL SHARES 20001+ 1999+ 1998+ 1997+ 1996+ 1995+
----------- --------------- -------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE -- BEGINNING
OF PERIOD ......................... $ 9.86 $ 10.27 $ 10.03 $ 9.94 $ 10.04 $ 9.53
-------- ------- ------- ------- ------- -------
INVESTMENT OPERATIONS:
Net investment income ............. 0.52 0.37 0.58 0.59 0.60 0.64
Net realized and unrealized gain
(loss) on investments .......... (0.16) (0.39) 0.24 0.09 (0.10) 0.51
-------- ------- ------- ------- ------- -------
Total from investment operations 0.36 (0.02) 0.82 0.68 0.50 1.15
-------- ------- ------- ------- ------- -------
DISTRIBUTIONS:
From net investment income ........ (0.52) (0.37) (0.58) (0.59) (0.60) (0.64)
From net realized gain ............ (0.03) (0.02) -- -- -- --
-------- ------- ------- ------- ------- -------
Total distributions ............ (0.55) (0.39) (0.58) (0.59) (0.60) (0.64)
-------- ------- ------- ------- ------- -------
NET ASSET VALUE -- END OF PERIOD ..... $ 9.67 $ 9.86 $ 10.27 $ 10.03 $ 9.94 $ 10.04
======== ======= ======= ======= ======= =======
TOTAL RETURN ......................... 4.28% (0.27)%** 8.40% 7.13% 5.18% 12.41%
RATIOS (TO AVERAGE NET ASSETS)/
SUPPLEMENTAL DATA:
Expenses:
Including expense limitations .. 0.60% 0.55%* 0.59% 0.65% 0.65% 0.65%
Excluding expense limitations .. 0.72% 0.67%* 0.83% 1.12% 1.09% 1.14%
Net investment income ............. 6.35% 5.47%* 5.64% 5.98% 6.07% 6.56%
Portfolio turnover ................... 47.23% 29.71% 40.66% 83.54% 85.77% 116.40%
Net assets at end of period
(000 omitted) ....................... $140,015 $89,383 $94,597 $31,456 $31,777 $32,214
<FN>
* Annualized.
** Not annualized.
+ Effective November 1, 1999, the Rodney Square Short/Intermediate Bond
Portfolio ("Rodney Square Portfolio") was merged into the Wilmington
Short/Intermediate Bond Portfolio. The financial highlights for periods prior
to November 1, 1999 reflect the performance history of the Rodney Square
Portfolio which have been restated to reflect the share conversion ratio
applied in the merger.
1 Effective November 1, 1999, the expense and net investment income ratios
include expenses allocated from the WT Investment Trust I -
Short/Intermediate Bond Series (the "Series") and the portfolio turnover
reflects the investment activity of the Series.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
11
<PAGE>
WILMINGTON FUNDS -- FIXED INCOME PORTFOLIOS
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS -- CONTINUED
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE
FISCAL YEAR FOR THE PERIOD FOR THE PERIOD
ENDED NOVEMBER 1, 1998 JUNE 29, 1998
JUNE 30, THROUGH THROUGH
INTERMEDIATE BOND PORTFOLIO -- INSTITUTIONAL SHARES 20001+ JUNE 30, 1999+ OCTOBER 31, 1998+
----------- ---------------- -----------------
<S> <C> <C> <C>
NET ASSET VALUE -- BEGINNING OF PERIOD $ 9.63 $ 10.19 $ 10.00
------- ------- -------
INVESTMENT OPERATIONS:
Net investment income ............. 0.58 0.38 0.20
Net realized and unrealized gain
(loss) on investments .......... (0.15) (0.53) 0.19
------- ------- -------
Total from investment operations 0.43 (0.15) 0.39
------- ------- -------
DISTRIBUTIONS:
From net investment income ........ (0.58) (0.38) (0.20)
From net realized gain ............ (0.02) (0.03) --
------- ------- -------
Total distributions ............ (0.60) (0.41) (0.20)
------- ------- -------
NET ASSET VALUE-- END OF PERIOD ...... $ 9.46 $ 9.63 $ 10.19
======= ======= =======
TOTAL RETURN ......................... 4.72% (1.52)%** 3.89%**
RATIOS (TO AVERAGE NET ASSETS)/
SUPPLEMENTAL DATA:
Expenses:
Including expense limitations .. 0.55% 0.55%* 0.55%*
Excluding expense limitations .. 0.71% 0.67%* 0.66%*
Net investment income ............. 6.15% 5.71%* 5.69%*
Portfolio turnover ................... 53.23% 18.23% 17.66%
Net assets at end of period
(000 omitted) ....................... $79,310 $87,297 $93,002
<FN>
* Annualized.
** Not annualized.
+ Effective November 1, 1999, the Rodney Square Intermediate Bond Portfolio
("Rodney Square Portfolio") was merged into the Wilmington Intermediate Bond
Portfolio. The financial highlights for periods prior to November 1, 1999
reflect the performance history of the Rodney Square Portfolio.
1 Effective November 1, 1999, the expense and net investment income ratios
include expenses allocated from the WT Investment Trust I - Intermediate Bond
Series (the "Series") and the portfolio turnover reflects the investment
activity of the Series.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
12
<PAGE>
WILMINGTON FUNDS -- FIXED INCOME PORTFOLIOS
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS -- CONTINUED
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE
FISCAL YEAR FOR THE PERIOD
ENDED NOVEMBER 1, 1998 FOR THE FISCAL YEARS ENDED OCTOBER 31,
MUNICIPAL BOND PORTFOLIO -- JUNE 30, THROUGH -----------------------------------------------------
INSTITUTIONAL SHARES 20001+ JUNE 30, 1999+ 1998+ 1997+ 1996+ 1995+
----------- ---------------- -----------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE -- BEGINNING
OF PERIOD ......................... $ 12.48 $ 12.94 $ 12.74 $ 12.46 $ 12.49 $ 11.64
------- ------- ------- ------- ------- -------
INVESTMENT OPERATIONS:
Net investment income ............. 0.56 0.36 0.56 0.55 0.55 0.54
Net realized and unrealized gain
(loss) on investments .......... (0.15) (0.40) 0.20 0.28 (0.03) 0.85
------- ------- ------- ------- ------- -------
Total from investment operations 0.41 (0.04) 0.76 0.83 0.52 1.39
------- ------- ------- ------- ------- -------
DISTRIBUTIONS:
From net investment income ........ (0.56) (0.36) (0.56) (0.55) (0.55) (0.54)
From net realized gain ............ (0.08) (0.06) -- -- -- --
------- ------- ------- ------- ------- -------
Total distributions ............ (0.64) (0.42) (0.56) (0.55) (0.55) (0.54)
------- ------- ------- ------- ------- -------
NET ASSET VALUE-- END OF PERIOD ...... $ 12.25 $ 12.48 $ 12.94 $ 12.74 $ 12.46 $ 12.49
======= ======= ======= ======= ======= =======
TOTAL RETURN ......................... 3.40% (0.30)%** 6.07% 6.85% 4.24% 12.23%
RATIOS (TO AVERAGE NET ASSETS)/
SUPPLEMENTAL DATA:
Expenses:
Including expense limitations .. 0.75% 0.75%* 0.75% 0.75% 0.75% 0.75%
Excluding expense limitations .. 1.03% 0.90%* 1.23% 1.52% 1.37% 1.45%
Net investment income ............. 4.59% 4.29%* 4.35% 4.42% 4.41% 4.50%
Portfolio turnover ................... 50.26% 19.13% 43.72% 28.56% 15.91% 42.08%
Net assets at end of period
(000 omitted) ....................... $16,009 $16,612 $17,579 $17,446 $16,619 $16,570
<FN>
* Annualized.
** Not annualized.
+ Effective November 1, 1999, the Rodney Square Municipal Bond Portfolio
("Rodney Square Portfolio") was merged into the Wilmington Municipal Bond
Portfolio. The financial highlights for periods prior to November 1, 1999
reflect the performance history of the Rodney Square Portfolio.
1 Effective November 1, 1999, the expense and net investment income ratios
include expenses allocated from the WT Investment Trust I - Municipal Bond
Series (the "Series") and the portfolio turnover reflects the investment
activity of the Series.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
13
<PAGE>
WILMINGTON FUNDS -- FIXED INCOME PORTFOLIOS
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
1. DESCRIPTION OF THE FUND. Wilmington Short/Intermediate Bond Portfolio,
Wilmington Intermediate Bond Portfolio, and Wilmington Municipal Bond
Portfolio (each a "Portfolio" and collectively the "Portfolios") are series
of WT Mutual Fund (the "Fund"). The Fund is registered under the Investment
Company Act of 1940 as an open-end management investment company and was
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. These financial statements and related notes
pertain only to the Portfolios. Information regarding other series of the
Fund are contained in separate reports to their shareholders.
The Portfolios currently offer two classes of shares: Investor Shares and
Institutional Shares. As of June 30, 2000, the Investor Shares have not
commenced operations.
Unlike other investment companies which directly acquire and manage their own
portfolio of securities, effective November 1, 1999, each Portfolio seeks to
achieve its investment objective by investing all of its investable assets in
a corresponding series of WT Investment Trust I (the "Series") having the
same investment objective, policies and limitations as the Portfolio. The
performance of each Portfolio is directly affected by the performance of its
corresponding Series. The financial statements of the Series, including their
Schedules of Investments, are included elsewhere in this report and should be
read in conjunction with the Portfolios' financial statements.
Information presented for periods prior to November 1, 1999 reflects the
operating results of predecessor mutual funds (see Note 5).
2. SIGNIFICANT ACCOUNTING POLICIES. The following is a summary of the
significant accounting policies of the Portfolios:
VALUATION OF INVESTMENT IN SERIES. Valuation of each Portfolio's investment
in the Series is based on the underlying securities held by the Series. Each
Portfolio is allocated its portion of the Series' securities market value
based on its ownership interest in the Series. Valuation of securities held
by the Series is discussed in the notes to the Series' financial statements.
FEDERAL INCOME TAXES. Each Portfolio is treated as a separate entity for
Federal income tax purposes and intends to continue qualifying as a
"regulated investment company" under Subchapter M of the Internal Revenue
Code of 1986, as amended, and to distribute all of its taxable and tax-exempt
income to its shareholders. Therefore, no Federal income tax provision is
required. At June 30, 2000, the Wilmington Short/Intermediate Portfolio had
$135,190 net tax basis capital loss carryforwards to offset future capital
gains which will expire June 30, 2008.
INVESTMENT INCOME AND DISTRIBUTIONS TO SHAREHOLDERS. Each Portfolio records
its 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 the Portfolios are
declared daily from net investment income and paid to shareholders monthly.
For the Municipal Bond Portfolio only, the tax-exempt portion of each
dividend is determined uniformly, based on the ratio of the Portfolio's
tax-exempt and taxable income, if any, for the entire fiscal year.
Distributions from net realized gains, if any, will be declared and paid
annually.
14
<PAGE>
WILMINGTON FUNDS -- FIXED INCOME PORTFOLIOS
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
--------------------------------------------------------------------------------
DEFERRED ORGANIZATION COSTS. Organization costs incurred by the Intermediate
Bond Portfolio have been deferred and are being amortized using the
straight-line method over a five-year period beginning on the date it
commenced operations.
USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS. The preparation
of financial statements in conformity with accounting principles generally
accepted in the United States requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.
3. INVESTMENT SECURITIES AND TRANSACTIONS. During the period July 1, 1999
through October 31, 1999, purchases and sales of investment securities
(excluding short-term investments) were as follows:
<TABLE>
<CAPTION>
SHORT/INTERMEDIATE INTERMEDIATE MUNICIPAL
BOND PORTFOLIO BOND PORTFOLIO BOND PORTFOLIO
------------------------------------------------------
<S> <C> <C> <C>
Purchases ............................... $49,524,842 $44,199,622 $7,659,685
Sales ................................... 60,966,599 49,176,190 8,024,773
</TABLE>
During the period November 1, 1999 through June 30, 2000, contributions to
and withdrawals from the Series were as follows:
<TABLE>
<CAPTION>
SHORT/INTERMEDIATE INTERMEDIATE MUNICIPAL
BOND PORTFOLIO BOND PORTFOLIO BOND PORTFOLIO
------------------------------------------------------
<S> <C> <C> <C>
Contributions ........................... $101,315,289 $103,567,009 $16,838,241
Withdrawals ............................. 28,619,545 27,308,183 1,342,432
</TABLE>
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES. The investment adviser to the
Series is Wilmington Trust Company ("WTC"). Advisory fees charged to the
Series are discussed in the notes to the Series' financial statements. Prior
to November 1, 1999, WTC served as investment adviser to the Rodney Square
Funds (see Note 5) under substantially similar terms.
PFPC Inc. ("PFPC"), an indirect wholly owned subsidiary of PNC Bank Corp., a
multi-bank holding company, provides administrative and accounting services
to the Fund.
PFPC also serves as transfer agent and dividend disbursing agent of the Fund
pursuant to a separate Transfer Agency Agreement with the Fund on behalf of
the Portfolios.
WTC has agreed to reimburse 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 0.55% of
the average daily net assets of the Short/Intermediate Bond and Intermediate
Bond Portfolios and 0.75% of the average daily net assets of the Municipal
Bond Portfolio. These undertakings will remain in place until the Board of
Trustees approves its termination.
15
<PAGE>
WILMINGTON FUNDS -- FIXED INCOME PORTFOLIOS
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
--------------------------------------------------------------------------------
5. FUND MERGER. Effective November 1, 1999, the Wilmington Short/Intermediate
Bond Portfolio, Wilmington Intermediate Bond Portfolio, and Wilmington
Municipal Bond Portfolio (the "Wilmington Portfolios") acquired all of the
assets and assumed all of the liabilities of the Rodney Square
Short/Intermediate Bond Portfolio, Rodney Square Intermediate Bond Portfolio,
and Rodney Square Municipal Bond Portfolio (the "Rodney Square Funds"),
respectively, each an open-end management company, pursuant to separate Plans
of Reorganization (the "Reorganizations"). The shareholders of the Rodney
Square Intermediate Bond and Municipal Bond Portfolios received shares of the
respective Wilmington Portfolios equal to the number and aggregate net asset
value of their shares in the Rodney Square Funds. The shareholders of the
Rodney Square Short/Intermediate Bond Portfolio received shares of the
Wilmington Short/Intermediate Bond Portfolio equal to the aggregate net asset
value of their shares prior to the Reorganizations based on the net asset
value per share of the Wilmington Short/Intermediate Bond Portfolio.
The Reorganizations were treated as non-taxable events and accordingly the
Wilmington Portfolios' basis in the securities acquired reflected the
historical cost basis as of the date of transfer. The net assets and net
unrealized appreciation (depreciation) of the Rodney Square Funds as of
November 1, 1999 were as follows:
<TABLE>
<CAPTION>
NET UNREALIZED
NET ASSETS APPRECIATION (DEPRECIATION)
----------- ------------------------
<S> <C> <C>
Rodney Square Short/Intermediate Bond Portfolio $90,398,329 $(2,156,402)
Rodney Square Intermediate Bond Portfolio $92,052,608 $(1,216,831)
Rodney Square Municipal Bond Portfolio $15,329,567 $ (296,744)
</TABLE>
The net assets of the Wilmington Short/Intermediate Bond Portfolio prior to
the Reorganization were $52,330,738. The Wilmington Intermediate Bond and the
Municipal Bond Portfolios had no operations prior to November 1, 1999.
Effective November 1, 1999, the Wilmington Short/Intermediate Bond Portfolio,
formerly known as the WT Short/Intermediate Bond Portfolio, changed its
investment objective, policies and limitations to match those of the Rodney
Square Short/Intermediate Bond Portfolio. Additionally, the Rodney Square
Intermediate Bond and Municipal Bond Portfolios' investment objectives,
policies and limitations were identical to those of the respective Wilmington
Portfolios. For financial reporting purposes the Rodney Square Funds'
operating histories prior to the acquisitions are reflected in the respective
financial statements and financial highlights of the Wilmington Portfolios.
6. TRANSFERS IN-KIND AND COMMENCEMENT OF NEW PORTFOLIO. Effective June 29, 1998,
the Wilmington TrustIntermediate BondFund ("Intermediate Bond Fund") and the
Wilmington Trust Strategic Bond Fund ("Strategic Bond Fund"), each a
Wilmington Trust Collective Investment Fund ("WTCIF"), transferred all of
their net assets, including their securities, to the Rodney Square
Short/Intermediate Bond Portfolio and the Rodney Square Intermediate Bond
Portfolio, respectively. The shareholders of the WTCIFs received shares of
the respective Portfolios based on the net assets transferred divided by the
net asset value of the respective Portfolio.
The transfer was conducted on a taxable basis with respect to the WTCIF
Intermediate Bond Fund, whereby any unrealized appreciation or depreciation
on the securities on the date of transfer was recognized by the
WTCIFIntermediate Bond Fund and the Rodney Square Short/Intermediate
BondPortfolio's basis in the securities reflected their market value as of
the date of transfer.
16
<PAGE>
WILMINGTON FUNDS -- FIXED INCOME PORTFOLIOS
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
--------------------------------------------------------------------------------
The transfer of securities was conducted on a tax-free basis with respect to
the WTCIF Strategic Bond Fund, whereby any unrealized appreciation or
depreciation on the securities on the date of transfer was not treated as a
taxable event by the WTCIFStrategic Bond Fund and the Rodney Square
Intermediate Bond Portfolio's basis in the securities reflected their
historical cost basis as of the date of transfer.
The following table summarized the aforementioned transactions:
THE WILMINGTON TRUST COLLECTIVE INVESTMENT FUNDS
<TABLE>
<CAPTION>
NET
NET ASSETS UNREALIZED
SHARES AT AT APPRECIATION (DEPRECIATION)
6/29/98 6/29/98 AT 6/29/98
--------- ----------- ---------------------------
<S> <C> <C> <C>
Intermediate Bond Fund ........................ 368,365 $52,875,813 $ 901,407
Strategic Bond Fund ........................... 4,809,547 89,217,926 3,568,067
</TABLE>
THE RODNEY SQUARE STRATEGIC FIXED-INCOME FUND
<TABLE>
<CAPTION>
COMBINED
SHARES NET ASSETS NAV
ISSUED IN AFTER PER
EXCHANGE EXCHANGE SHARE
--------- ----------- --------
<S> <C> <C> <C>
Short/Intermediate Bond Portfolio ............. 4,027,047 $84,571,146 $13.13
Intermediate Bond Portfolio ................... 8,921,710 89,217,926 10.00
</TABLE>
17
<PAGE>
WILMINGTON FUNDS -- FIXED INCOME PORTFOLIOS
--------------------------------------------------------------------------------
REPORT OF INDEPENDENT AUDITORS
--------------------------------------------------------------------------------
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
To the Shareholders and Trustees of WT Mutual Fund:
We have audited the accompanying statements of assets and liabilities of WT
Mutual Fund (Short/Intermediate Bond, Intermediate Bond and Municipal Bond
Portfolios) (the "Portfolios") as of June 30, 2000, and the related statements
of operations for the year then ended, and the statements of changes in net
assets and financial highlights for each of the periods indicated therein. These
financial statements and financial highlights are the responsibility of the
Portfolios' management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the respective Portfolios at June 30, 2000, the results of their operations
for the year then ended, and the changes in their net assets and their financial
highlights for each of the periods indicated therein, in conformity with
accounting principles generally accepted in the United States.
/s/ Ernst & Young
Philadelphia, Pennsylvania
August 4, 2000
18
<PAGE>
WILMINGTON FUNDS -- FIXED INCOME PORTFOLIOS
--------------------------------------------------------------------------------
NOTICE TO SHAREHOLDERS
--------------------------------------------------------------------------------
SPECIAL MEETINGS OF SHAREHOLDERS
Special meetings of the shareholders of the WT Mutual Fund was held on October
22, 1999 to vote on the following proposals:
(I) To approve or disapprove new investment advisory agreements;
(II) To consider the election of five persons to the Fund's Board of Trustees;
(III) To approve or disapprove certain changes to each Portfolio's fundamental
investment limitations; and
(IV) To ratify the selection of Ernst & Young LLP as the Fund's independent
auditors for the fiscal year ending June 30, 2000.
<TABLE>
<CAPTION>
FOR AGAINST ABSTAINED
--------- ------- ---------
<S> <C> <C> <C>
WT Mutual Fund
Short/Intermediate Bond Portfolio
(I) 6,374,079 0 0
(II) 6,374,079 0 0
(III) 6,374,079 0 0
(IV) 6,374,079 0 0
</TABLE>
19
<PAGE>
WILMINGTON FUNDS -- FIXED INCOME PORTFOLIO
--------------------------------------------------------------------------------
NOTICE TO SHAREHOLDERS (UNAUDITED)
--------------------------------------------------------------------------------
TAX INFORMATION
Pursuant to Secton 852 of the Internal Revenue Code of 1986, as amended, the
Municipal Bond Portfolio designates $720,131 as tax-exempt dividends. Also, the
following Portfolios paid a 20% capital gain distribution (from net long-term
capital gains) during the fiscal year ended June 30, 2000. The following table
summarizes the capital gain distributions:
<TABLE>
<CAPTION>
CAPITAL GAIN TOTAL 20%
PER SHARE CAPITAL GAIN DISTRIBUTION
------------ -------------------------
<S> <C> <C>
Short/Intermediate Bond Portfolio $0.0184 $143,394
Intermediate Bond Portfolio 0.0092 179,894
Municipal Income Portfolio 0.0758 93,711
</TABLE>
In January 2001, shareholders of the Fund will receive Federal income tax
informaton on all distributions paid to their accounts in the calendar year
2000, including any distributions paid between June 30, 2000 and December 31,
2000.
20
<PAGE>
WT INVESTMENT TRUST I -- FIXED INCOME SERIES
--------------------------------------------------------------------------------
ANNUAL REPORT / JUNE 30, 2000
--------------------------------------------------------------------------------
(The following pages should be read in conjunction with the
Portfolios' Financial Statements.)
The accompanying notes are an integral part of the financial statements.
21
<PAGE>
WT INVESTMENT TRUST I -- FIXED INCOME SERIES / SHORT/INTERMEDIATE BOND SERIES
--------------------------------------------------------------------------------
INVESTMENTS / JUNE 30, 2000
(Showing Percentage of Total Value of Net Assets)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MOODY'S/S&P PRINCIPAL VALUE
RATING1 AMOUNT (NOTE 2)
----------- --------- --------
<S> <C> <C> <C>
CORPORATE BONDS -- 46.2%
Banks -- 3.1%
Amsouth Bank of Alabama, 6.45%, 02/01/18 ................... A1, A- $ 250,000 $ 226,358
BankAmerica Corp., 6.75%, 09/15/05 ......................... Aa3, A 750,000 721,811
National City Bank Cleveland, 6.50%, 05/01/03 .............. A1, A 1,200,000 1,168,333
St. George Bank, Ltd., 7.15%, 06/18/07 ..................... Baa1, A- 750,000 710,814
Union Bank Switzerland, New York, 7.25%, 07/15/06 .......... Aa2, AA 800,000 791,696
Wachovia Corp., 6.70%, 06/21/04 ............................ Aa3, AA- 750,000 731,808
------------
4,350,820
------------
FINANCIAL -- 18.9%
Abbey National PLC, 6.69%, 10/17/05 ........................ Aa3, AA- 675,000 647,266
Associates Corp., NA, 6.75%, 08/01/01 ...................... Aa3, A+ 900,000 894,991
Bear Stearns Co., Inc., 6.45%, 08/01/02 .................... A2, A 1,000,000 977,394
Bear Stearns Co., Inc., 6.63%, 10/01/04 .................... A2, A 850,000 813,884
Commercial Credit Co., 8.70%, 06/15/99 ..................... Aa3, AA- 850,000 914,260
Crestar Financial Corp., 6.50%, 01/15/08 ................... A2, A 700,000 661,159
Donaldson Lufkin Jenrette, 8.00%, 03/01/05 ................. A3, A- 1,500,000 1,500,595
Equifax, Inc., 6.30%, 07/01/05 ............................. A3, A 300,000 283,236
First Chicago, 7.63%, 01/15/03 ............................. A2, A 400,000 399,792
First Union Corp., 6.82%, 08/01/26 ......................... A2, A- 200,000 197,084
Ford Motor Credit Co., 6.55%, 09/10/02 ..................... A2, A 1,400,000 1,376,290
Ford Motor Credit Co., 7.75%, 11/15/02 ..................... A2, A 300,000 301,942
General Electric Capital Corp., 8.13%, 05/15/12 ............ Aaa, AAA 250,000 264,867
General Motors Acceptance Corp., 6.75%, 02/07/02 ........... A2, A 1,000,000 991,040
Goldman Sachs Group, 6.65%, 05/15/09 ....................... A1, A+ 2,100,000 1,949,367
Heller Financial, Inc., 7.88%, 05/15/03 .................... A3, A- 1,700,000 1,694,851
Household Finance Corp., 7.25%, 07/15/03 ................... A2, A 1,000,000 987,187
J. P. Morgan & Co., Inc., 6.00%, 01/15/09 .................. A2, A+ 1,800,000 1,595,489
Lehman Brothers Holdings, Inc., 6.50%, 10/01/02 ............ A3, A 600,000 585,456
Lehman Brothers Holdings, Inc., 7.38%, 05/15/04 ............ A3, A 1,200,000 1,172,683
Lehman Brothers Holdings, Inc., 6.63%, 02/05/06 ............ A3, A 1,725,000 1,610,149
Merrill Lynch & Co., Inc. Sr. Notes, 6.00%, 02/17/09 ...... Aa3, AA- 1,300,000 1,150,205
Morgan Stanley, Dean Witter, Discover & Co., 7.75%, 06/15/05 Aa3, AA- 2,500,000 2,513,035
Morgan Stanley, Dean Witter, Discover & Co., 6.88%, 03/01/07 Aa3, AA- 1,000,000 942,468
Pitney Bowes Credit Corp., 6.63%, 06/01/02 ................. Aa3, AA 800,000 790,400
TPSA Finance BV, 7.75%, 12/10/08 ........................... Baa3, BBB- 1,500,000 1,414,185
------------
26,629,275
------------
INDUSTRIAL -- 17.7%
Allied Signal, 8.00%, 05/15/06 ............................. A2, A 500,000 509,955
Amoco Co., 6.25%, 10/15/04 ................................. Aa1, AAA 400,000 391,517
Anheuser Busch Cos., 5.38%, 09/15/08 ....................... A1, A+ 400,000 349,670
Bausch & Lomb, Inc., 6.38%, 08/01/03 ....................... Baa2, BBB 950,000 911,189
Bausch & Lomb, Inc., 6.75%, 12/15/04 ....................... Baa2, BBB 1,000,000 949,435
Cooper Tire and Rubber, 7.25%, 12/16/02 .................... A3, BBB+ 2,250,000 2,228,258
Dana Corp., 6.25%, 03/01/04 ................................ Baa1, BBB+ 500,000 471,707
EG&G, Inc., 6.80%, 10/15/05 ................................ Baa2, A- 1,000,000 959,008
The accompanying notes are an integral part of the financial statements.
22
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--------------------------------------------------------------------------------
INVESTMENTS / JUNE 30, 2000 -- CONTINUED
--------------------------------------------------------------------------------
MOODY'S/S&P PRINCIPAL VALUE
RATING1 AMOUNT (NOTE 2)
----------- --------- --------
Elf Aquitane, 8.00%, 10/15/01 .............................. Aa3, AA $ 300,000 $ 302,971
Hertz Corp., 8.25%, 06/01/05 ............................... A3, A 2,000,000 2,042,074
Hewlett Packard Co., 7.15%, 06/15/05 ....................... Aa2, AA- 2,500,000 2,509,105
International Business Machines Corp., 5.10%, 11/10/03 ..... A1, A+ 500,000 470,583
Ingersoll - Rand, 6.02%, 02/15/28 .......................... A3, A- 2,300,000 2,286,071
J Seagram & Sons, 6.40%, 12/15/03 .......................... Baa3, BBB- 1,000,000 962,067
Nabisco, Inc., 6.13%, 02/01/03 ............................. Baa2, BBB 1,600,000 1,518,240
Penney (J.C.) Co., 6.13%, 11/15/03 ......................... Baa2, BBB 1,000,000 907,616
Praxair, Inc., 6.75%, 03/01/03 ............................. A3, BBB+ 1,000,000 976,550
Procter & Gamble, 6.60%, 12/15/04 .......................... Aa2, AA 2,000,000 1,965,242
TRW, Inc. Notes, 6.63%, 06/01/04 ........................... Baa1, BBB 1,000,000 952,758
Tyco International Group, 6.13%, 06/15/01 .................. Baa1, A- 1,000,000 987,426
Wal Mart Notes, 6.88%, 08/10/09 ............................ Aa2, AA 700,000 685,589
Wal Mart Notes, 7.55%, 02/15/30 ............................ Aa3, AA 650,000 673,420
Walt Disney Co. Notes, 5.62%, 12/01/08 ..................... A2, A 1,000,000 886,284
------------
24,896,735
------------
NATIONAL GOVERNMENT -- 0.6%
Korea Export - Import Bank, 7.10%, /56 .................. Baa2, AA- 900,000 891,023
------------
TELECOMMUNICATIONS -- 0.7%
GTE Southwest, Ser. 1993B, 6.54%, 12/01/05 ................. A2, AA- 1,000,000 974,420
------------
TRANSPORTATION -- 0.7%
Norfolk Southern Corp., 7.35%, 05/15/07 .................... Baa1, BBB 950,000 922,668
------------
UTILITIES -- 4.5%
Central Illinois Public Services, 6.73%, 06/01/01 .......... Aa1, AA- 700,000 696,312
Citizens Utilities Co., 7.60%, 06/01/06 .................... A2, A+ 1,000,000 1,010,950
Empresa Nacional Electric, 7.75%, 07/15/08 ................. Baa1, A- 1,500,000 1,400,715
Hawaiian Electric Industry, 6.49%, 06/12/02 ................ Baa2, BBB 550,000 537,437
Ohio Power Co., Ser. 1997A, 6.73%, 11/01/04 ................ Baa1, A- 400,000 388,752
Oklahoma Gas & Electric, 6.50%, 07/15/07 ................... A1, A+ 1,000,000 963,534
Southern California Edison, 7.63%, 01/15/10 ................ A2, A 1,350,000 1,353,961
------------
6,351,661
------------
TOTAL CORPORATE BONDS
(Cost $66,970,086) .................................. 65,016,602
------------
ASSET-BACKED SECURITIES -- 12.9%
Advanta Mortgage Loan Trust, Ser. 1996-1, Cl. A6, 6.73%, 08/25/23 NR, NR 500,000 491,425
Advanta Mortgage Loan Trust, Ser.1993-3, Cl. A5, 5.55%, 01/25/25 NR, NR 85,088 79,069
Contimortgage Home Equity Loan Trust, Ser. 1996-1, Cl. A6,
6.69%, 01/15/16 ......................................... NR, NR 499,996 493,461
Contimortgage Home Equity Loan Trust Ser. 1998-2, Cl. A5,
6.28%, 09/15/16 ......................................... NR, NR 1,300,000 1,267,955
Contimortgage Home Equity Loan Trust, Ser. 1999-2, Cl. A4,
6.48%, 07/25/23 ......................................... NR, NR 1,000,000 961,700
The accompanying notes are an integral part of the financial statements.
23
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--------------------------------------------------------------------------------
INVESTMENTS / JUNE 30, 2000 -- CONTINUED
MOODY'S/S&P PRINCIPAL VALUE
RATING1 AMOUNT (NOTE 2)
----------- --------- --------
Crown Home Equity Loan Trust, Ser. 1996-1, Cl. A4,
7.15%, 08/25/12 ......................................... NR, NR $1,000,000 $ 990,030
Federal National Mortgage Association Notes, Ser. 1995-W1, Cl. A6,
8.10%, 04/25/25 ......................................... NR, NR 767,539 769,998
First Plus Home Loan Trust, Ser. 1996-2, Cl. A6, 7.85%, 08/20/13 NR, NR 275,799 275,127
First Sierra Equipment Contact Trust, Ser. 1998-1, Cl. A4,
5.63%, 08/12/04 ......................................... NR, NR 1,500,000 1,463,040
General Electric Capital Mortgage Services, Inc., Ser. 1996-HE2,
Cl. A5, 7.94%, 06/25/14 ................................. NR, NR 1,000,000 995,440
General Electric Capital Mortgage Services, Inc., Ser. 1999-HE1,
6.19%, 01/25/23 ......................................... NR, NR 1,200,000 1,132,992
Green Tree Financial Corp., Ser. 1995-2, Cl. A6,
8.30%, 05/15/26 ......................................... NR, NR 925,000 942,991
Green Tree Home Equity Loan Trust Ser. 1999-D, Cl. A3,
7.30%, 08/15/18 ......................................... NR, NR 2,000,000 1,992,820
Green Tree Lease Finance, Ser. 1997-1, Cl. A3, 6.17%, 09/20/05 NR, NR 220,364 219,858
Greenpoint Manufactured Housing, Ser. 1999-1, Cl. A2,
6.01%, 08/15/15 ......................................... NR, NR 1,000,000 968,240
IMC Home Equity Loan Trust, Ser. 1997-5, Cl. A7,
6.90%, 01/20/22 ......................................... NR, NR 900,000 883,665
MBNA Master Credit Card Trust, Ser. 1995-F, Cl. A,
6.60%, 01/15/03 ......................................... NR, NR 800,000 799,712
Oakwood Mortgage Investors, Inc., Ser. 1998-B, Cl. A2,
6.15%, 07/15/11 ......................................... NR, NR 544,805 540,066
The Money Store Home Equity Trust, Ser. 1992-D2, Cl. A3,
7.55%, 01/15/18 ......................................... NR, NR 280,068 279,262
The Money Store Home Equity Trust, Ser. 1996-B, Cl. A8,
7.91%, 05/15/24 ......................................... NR, NR 750,000 751,628
UCFC Home Equity Loan, Ser. 1998-B, Cl. A2, 6.01%, 09/15/14 NR, NR 513,518 510,612
Vanderbilt Mortgage Finance, Ser. 1999-C, Cl. A2, 7.09%, 11/07/13 NR, NR 1,100,000
1,087,823
Vanderbilt Mortgage Finance, Ser. 1996-A, Cl. A3,
6.85%, 04/07/26 ......................................... NR, NR 285,805 284,859
------------
TOTAL ASSET-BACKED SECURITIES
(Cost $18,564,444) .................................. 18,181,773
------------
MORTGAGE-BACKED SECURITIES -- 5.1%
Federal Home Loan Mortgage Corp. Notes, CMO 2129, 5.75%, 09/15/11 ......... 1,650,000 1,543,179
Federal Home Loan Mortgage Corp. Notes, Gold 15 Yr., 6.00%, 01/01/13 ...... 937,448 888,525
Federal Home Loan Mortgage Corp. Notes, 2073 PJ, 6.00%, 10/15/23 .......... 500,000 468,990
Federal National Mortgage Association Notes, 7 Yr Balloon, 6.00%, 01/01/06 417,694 397,854
Federal National Mortgage Association Notes, 7 Yr Balloon, 6.00%, 02/01/06 218,057 207,699
Federal National Mortgage Association Notes, 7 Yr Balloon, 6.00%, 02/01/06 328,505 312,901
Federal National Mortgage Association Notes, Ser. 1996-4, Cl. VC,
6.50%, 07/25/02 ........................................................ 184,062 181,930
The accompanying notes are an integral part of the financial statements.
24
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--------------------------------------------------------------------------------
INVESTMENTS / JUNE 30, 2000 -- CONTINUED
--------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 2)
---------- ------------
Federal National Mortgage Association Notes, Ser. 1993-50, Cl. D,
6.25%, 07/25/04 ........................................................ $ 400,000 $ 389,296
Federal National Mortgage Association Notes, Ser. 1996-23, Cl. A,
6.50%, 09/25/21 ........................................................ 1,506,931 1,482,157
Federal National Mortgage Association Notes, Ser. 1998-W3, Cl. A2,
6.50%, 07/25/28 ........................................................ 426,064 419,861
Federal National Mortgage Association Notes, Ser. 1999-W5, Cl. A4,
6.12%, 02/25/29 ........................................................ 1,000,000 906,385
------------
TOTAL MORTGAGE-BACKED SECURITIES
(Cost $7,525,242) .................................................. 7,198,777
------------
U.S. AGENCY OBLIGATIONS -- 12.0%
FEDERAL HOME LOAN BANK NOTES -- 0.6%
Federal Home Loan Bank Notes, 5.25%, 04/25/02 ............................. 900,000 875,695
------------
FEDERAL HOME LOAN MORTGAGE CORPORATION NOTES -- 4.7%
Federal Home Loan Mortgage Corp. Notes, 7.00%, 02/15/03 ................... 850,000 850,513
Federal Home Loan Mortgage Corp. Notes, 6.88%, 01/15/05 ................... 2,000,000 1,987,684
Federal Home Loan Mortgage Corp. Notes, 7.05%, 06/08/05 ................... 500,000 490,620
Federal Home Loan Mortgage Corp. Notes, 5.95%, 01/19/06 ................... 850,000 807,742
Federal Home Loan Mortgage Corp. Notes, 6.63%, 09/15/09 ................... 2,500,000 2,411,000
------------
6,547,559
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION NOTES -- 6.7%
Federal National Mortgage Association Notes, 5.42%, 01/23/01 .............. 1,000,000 992,482
Federal National Mortgage Association Notes, 6.25%, 11/15/02 .............. 2,500,000 2,462,508
Federal National Mortgage Association Notes, 5.78%, 02/12/03 .............. 750,000 730,754
Federal National Mortgage Association Notes, 5.13%, 02/13/04 .............. 558,000 524,240
Federal National Mortgage Association Notes, 6.50%, 08/15/04 .............. 2,000,000 1,961,212
Federal National Mortgage Association Notes, 6.56%, 12/10/07 .............. 1,100,000 1,042,746
Federal National Mortgage Association Notes, 6.16%, 07/09/08 .............. 1,275,000 1,184,842
Federal National Mortgage Association Notes, 6.00%, 09/24/08 .............. 600,000 550,723
------------
9,449,507
------------
TOTAL U.S. AGENCY OBLIGATIONS
(Cost $17,270,336) ................................................. 16,872,761
------------
U.S. TREASURY OBLIGATIONS -- 18.6%
U.S. Treasury Notes, 6.25%, 04/30/01 ...................................... 1,150,000 1,147,844
U.S. Treasury Notes, 7.50%, 11/15/01 ...................................... 350,000 354,485
U.S. Treasury Notes, 5.88%, 11/30/01 ...................................... 3,750,000 3,717,188
U.S. Treasury Notes, 6.13%, 12/31/01 ...................................... 1,400,000 1,392,125
U.S. Treasury Notes, 6.25%, 02/28/02 ...................................... 1,500,000 1,495,185
U.S. Treasury Notes, 6.25%, 06/30/02 ...................................... 500,000 498,282
U.S. Treasury Notes, 5.50%, 01/31/03 ...................................... 1,350,000 1,321,735
U.S. Treasury Notes, 5.88%, 02/15/04 ...................................... 500,000 493,125
U.S. Treasury Notes, 7.25%, 05/15/04 ...................................... 550,000 567,016
U.S. Treasury Notes, 7.25%, 08/15/04 ...................................... 1,500,000 1,550,157
The accompanying notes are an integral part of the financial statements.
25
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--------------------------------------------------------------------------------
INVESTMENTS / JUNE 30, 2000 -- CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 2)
---------- ------------
U.S. Treasury Notes, 7.50%, 02/15/05 ...................................... $1,500,000 $ 1,573,125
U.S. Treasury Notes, 6.50%, 05/15/05 ...................................... 300,000 303,281
U.S. Treasury Notes, 6.88%, 05/15/06 ...................................... 2,000,000 2,058,126
U.S. Treasury Notes, 7.00%, 07/15/06 ...................................... 2,500,000 2,589,845
U.S. Treasury Notes, 6.50%, 10/15/06 ...................................... 3,600,000 3,637,895
U.S. Treasury Notes, 6.25%, 02/15/07 ...................................... 1,650,000 1,651,548
U.S. Treasury Notes, 11.75%, 02/15/10 ..................................... 650,000 785,078
U.S. Treasury Notes, 7.25%, 05/15/16 ...................................... 750,000 825,235
U.S. Treasury Notes, 6.88%, 08/15/25 ...................................... 300,000 326,156
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $26,947,813) .................................................................. 26,287,431
------------
COMMERCIAL PAPER -- 3.9%
American Express, 6.88%, 07/03/00 ......................................... 5,445,114 5,445,114
------------
TOTAL COMMERCIAL PAPER
(Cost $5,445,114) .................................................. 5,445,114
------------
TOTAL INVESTMENTS (Cost $142,723,035)+-- 98.7% ................................. 139,002,458
------------
OTHER ASSETS AND LIABILITIES, NET-- 1.3% ....................................... 1,849,990
------------
TOTAL NET ASSETS-- 100.0% ...................................................... $140,852,448
============
<FN>
+ The cost for federal income tax purposes. At June 30, 2000, net unrealized
depreciation was $3,720,577. This consisted of aggregate gross unrealized
appreciation for all securities, in which there was an excess of market value
over tax cost, of $214,189, and aggregate gross unrealized depreciation for
all securities, in which there was an excess of tax cost over market value, of
$3,934,766.
1 Although certain securities are not rated (NR) by either Moody's or S&P, they
have been determined to be of comparable quality to investment grade
securities by the investment adviser. The ratings shown are unaudited.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
26
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--------------------------------------------------------------------------------
INVESTMENTS / JUNE 30, 2000
(Showing Percentage of Total Value of Net Assets)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MOODY'S/S&P PRINCIPAL VALUE
RATING1 AMOUNT (NOTE 2)
----------- --------- --------
<S> <C> <C> <C>
CORPORATE BONDS -- 52.1%
BANKS -- 6.7%
Amsouth Bank of Alabama, 6.45%, 02/01/18 ................... A1, A- $ 200,000 $ 181,087
Citicorp, 7.25%, 10/15/11 .................................. A1, A+ 1,000,000 960,385
First Union Corp., 6.82%, 08/01/06 ......................... A2, A- 651,000 641,508
Korea Development Bank 144A, 7.13%, 09/17/01 ............... Baa2, BBB 1,300,000 1,288,633
St. George Bank, Ltd., 7.15%, 06/18/07 ..................... Baa1, A- 400,000 379,101
Swiss Bank Corp., New York, 7.00%, 10/15/15 ................ Aa2, AA 1,000,000 922,930
Union Bank Switzerland, New York, 7.25%, 07/15/06 .......... Aa2, AA 600,000 593,772
Wachovia Corp., 6.25%, 08/04/08 ............................ A1, A+ 400,000 361,750
------------
5,329,166
------------
FINANCIAL -- 15.5%
Abbey National PLC, 6.69%, 10/17/05 ........................ Aa3, AA- 1,100,000 1,054,804
Ameritech Capital Funding, 6.45%, 01/15/18 ................. Aa3, AA- 1,700,000 1,476,860
Bear Stearns Co., Inc., 6.63%, 10/01/04 .................... A2, A 400,000 383,004
CIT Group Holdings, Inc., 6.38%, 08/01/02 .................. A1, A+ 500,000 487,907
Commercial Credit Co., 8.70%, 06/15/09 ..................... Aa3, AA- 1,200,000 1,290,720
Crestar Financial Corp., 6.50%, 01/15/18 ................... A2, A 500,000 472,256
Donaldson Lufkin Jenrette, 8.00%, 03/01/05 ................. A3, A- 1,000,000 1,000,397
General Electric Capital Corp., 8.13%, 05/15/12 ............ Aaa, AAA 700,000 741,629
Goldman Sachs Group, 6.65%, 05/15/09 ....................... A1, A+ 1,500,000 1,392,405
Heller Financial, Inc., 7.88%, 05/15/03 .................... A3, A- 700,000 697,880
Lehman Brothers Holdings, Inc., 6.50%, 10/01/02 ............ A3, A 900,000 878,184
Lehman Brothers Holdings, Inc., 7.38%, 05/15/04 ............ A3, A 750,000 732,927
Lehman Brothers Holdings, Inc., 6.63%, 02/05/06 ............ A3, A 500,000 466,710
Morgan Stanley, Dean Witter, Discover & Co., 7.75%, 06/15/05 Aa3, AA- 500,000 502,607
TPSA Finance BV 144A, 7.75%, 12/10/08 ...................... Baa3, BBB 800,000 754,232
------------
12,332,522
------------
INDUSTRIAL -- 21.1%
Akzo Nobel, Inc., 6.00%, 11/15/03 .......................... A2, A- 600,000 569,129
Amoco Co., 6.25%, 10/15/04 ................................. Aa1, AA+ 500,000 489,396
Bausch & Lomb, Inc., 6.38%, 08/01/03 ....................... Baa2, BBB 700,000 671,402
Conoco, Inc., 6.95%, 04/15/29 .............................. A3, A- 1,350,000 1,230,355
Dana Corp., 6.25%, 03/01/04 ................................ Baa1, BBB+ 1,000,000 943,413
Elf Aquitane, 8.00%, 10/15/01 .............................. Aa2, AA 600,000 605,941
Harvard University, 8.13%, 04/15/07 ........................ Aaa, AAA 500,000 515,825
Hewlett Packard Co., 7.15%, 06/15/05 ....................... Aa2, AA- 600,000 602,185
Ingersoll-Rand, 6.02%, 02/15/28 ............................ A3, A- 1,000,000 993,944
International Business Machines Corp., 6.50%, 01/15/28 ..... A1, A+ 2,400,000 2,167,656
J Seagram & Sons, 6.40%, 12/15/03 .......................... Baa3, BBB- 500,000 481,033
Nabisco, Inc., 6.13%, 02/01/33 ............................. Baa2, BBB 700,000 664,230
Procter & Gamble, 6.60%, 12/15/04 .......................... Aa2, AA 1,500,000 1,473,931
TRW, Inc. Notes, 6.63%, 06/01/04 ........................... Baa1, BBB 1,400,000 1,333,861
Tyco International Group, 6.13%, 06/15/01 .................. Baa1, A- 600,000 592,456
The accompanying notes are an integral part of the financial statements.
27
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--------------------------------------------------------------------------------
INVESTMENTS / JUNE 30, 2000 -- CONTINUED
--------------------------------------------------------------------------------
MOODY'S/S&P PRINCIPAL VALUE
RATING1 AMOUNT (NOTE 2)
----------- --------- --------
Wal-Mart Notes, 6.88%, 08/10/09 ............................ Aa2, AA $ 400,000 $ 391,765
Wal-Mart Notes, 7.55%, 02/15/30 ............................ Aa2, AA 2,150,000 2,227,464
Walt Disney Co. Notes, 5.62%, 12/01/08 ..................... A2, A 1,000,000 886,284
------------
16,840,270
------------
NATIONAL GOVERNMENT -- 0.7%
Korea Export - Import Bank, 7.10%, 03/15/02 ................ Baa2, BBB 550,000 544,514
------------
TELECOMMUNICATIONS -- 1.1%
GTE Southwest, Ser. 1993-B, 6.54%, 12/01/05 ................ Aa3, A+ 500,000 487,210
Worldcom, Inc., 6.50%, 04/15/10 ............................ A3, A- 400,000 363,455
------------
850,665
------------
TRANSPORTATION -- 1.3%
Norfolk Southern Corp., 7.35%, 05/15/07 ................. Baa1, BBB 1,100,000 1,068,352
------------
UTILITIES -- 5.7%
Empresa Nacional Electric, 7.75%, 07/15/08 ................. Baa1, A- 1,500,000 1,400,715
Hawaiian Electric Industry, 6.49%, 06/12/02 ................ Baa2, BBB 1,000,000 977,159
Oklahoma Gas & Electric, 6.50%, 07/15/04 ................... A1, A+ 1,250,000 1,204,417
Southern California Edison, 7.63%, 01/15/10 ................ A2, A 1,000,000 1,002,934
------------
4,585,225
------------
TOTAL CORPORATE BONDS (Cost $42,664,489) ............ 41,550,714
------------
ASSET-BACKED SECURITIES -- 17.5%
Advanta Mortgage Loan Trust, Ser. 1993-3, Cl. A5,
5.55%, 01/25/25 ......................................... Aaa, AAA 170,177 158,139
AFC Home Equity Loan Trust, Ser. 1993-1, Cl. A,
5.90%, 05/20/08 ......................................... Aaa, AAA 457,362 447,694
Crown Home Equity Loan Trust, Ser. 1996-1, Cl. A4,
7.15%, 08/25/12 ......................................... Aaa, AAA 1,400,000 1,386,042
Federal National Mortgage Association Notes, Ser. 1996-23, Cl. A6,
6.50%, 09/25/21 ......................................... NR, NR 742,853 730,641
Federal National Mortgage Association Notes, Ser. 1995-W1, Cl. A6,
8.10%, 04/25/25 ......................................... NR, NR 767,539 769,998
First Plus Home Loan Trust, Ser. 1996-2, Cl. A6, 7.85%, 08/20/13 Aaa, AAA 551,599 550,254
General Electric Capital Mortgage Services, Inc.,
Ser. 1997-HE4, Cl. A3, 6.59%, 12/25/12 .................. Aaa, NR 526,742 523,777
The accompanying notes are an integral part of the financial statements.
28
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--------------------------------------------------------------------------------
INVESTMENTS / JUNE 30, 2000 -- CONTINUED
--------------------------------------------------------------------------------
MOODY'S/S&P PRINCIPAL VALUE
RATING1 AMOUNT (NOTE 2)
----------- --------- --------
General Electric Capital Mortgage Services, Inc.,
Ser. 1999-HE1, Cl. A4, 6.19%, 01/25/23 .................. Aaa, NR $ 500,000 $ 472,080
Green Tree Financial Corp., Ser. 1995-2, Cl. A6, 8.30%, 05/15/26 Aaa, AAA 400,000 407,780
Green Tree Home Improvement Loan Trust,
Ser. 1996-C, Cl. HEA4, 7.80%, 06/15/26 .................. NR, AAA 2,000,000 2,007,320
Green Tree Lease Finance, Ser. 1997-1, Cl. A4, 6.27%, 09/20/05 NR, AAA 750,000 740,873
IMC Home Equity Loan Trust, Ser. 1997-5, Cl. A7, 6.90%, 01/20/22 Aaa, AAA 500,000 490,925
MBNA Master Credit Card Trust, Ser. 1995-F, Cl. A, 6.60%, 01/15/03 Aaa, AAA 500,000 499,820
Oakwood Mortgage Investors, Inc., Ser. 1998-B, Cl. A2,
6.15%, 07/15/11 ......................................... NR, AAA 423,737 420,051
The Money Store Home Equity Trust, Ser. 1992-D2, Cl. A3,
7.55%, 01/15/18 ......................................... Aaa, AAA 487,861 486,457
The Money Store Home Equity Trust, Ser. 1995-A, Cl. 5,
8.40%, 02/15/24 ......................................... Aaa, AAA 800,000 806,336
The Money Store Home Equity Trust, Ser. 1996-B, Cl. A8,
7.91%, 05/15/24 ......................................... Aaa, AAA 2,000,000 2,004,340
UCFC Home Equity Loan Trust, Ser. 1998-B, Cl. A2,
6.01%, 09/15/14 ......................................... Aaa, AAA 513,518 510,612
Vanderbilt Mortgage Finance, Ser. 1996-A, Cl. A3,
6.85%, 04/07/26 ......................................... Aaa, NR 571,610 569,718
------------
TOTAL ASSET-BACKED SECURITIES
(Cost $14,209,756) .................................................................. 13,982,857
------------
MORTGAGE-BACKED SECURITIES -- 1.6%
Federal Home Loan Mortgage Corp. Notes, 2073 PJ (Pac),
6.00%, 10/15/23 ........................................................ 300,000 281,394
Federal Home Loan Mortgage Corp. Notes, CMO 2129 PE,
5.75%, 09/15/11 ........................................................ 400,000 374,104
Federal Home Loan Mortgage Corp. Notes, Gold 15 Yr.,
6.00%, 01/01/13 ........................................................ 624,965 592,350
------------
TOTAL MORTGAGE-BACKED SECURITIES
(Cost $1,317,619) .................................................. 1,247,848
------------
U.S. AGENCY OBLIGATIONS -- 6.2%
FEDERAL HOME LOAN BANK NOTES -- 0.7%
Federal Home Loan Bank Notes, 5.30%, 10/29/02 ............................. 600,000 579,438
------------
FEDERAL HOME LOAN MORTGAGE CORPORATION NOTES -- 3.3%
Federal Home Loan Mortgage Corp. Notes, 6.88%, 01/15/05 ................... 1,300,000 1,291,995
Federal Home Loan Mortgage Corp. Notes, 7.05%, 06/08/05 ................... 1,000,000 981,239
Federal Home Loan Mortgage Corp. Notes, 5.95%, 01/19/06 ................... 350,000 332,600
------------
2,605,834
------------
The accompanying notes are an integral part of the financial statements.
29
<PAGE>
WT INVESTMENT TRUST I -- FIXED INCOME SERIES / INTERMEDIATE BOND SERIES
--------------------------------------------------------------------------------
INVESTMENTS / JUNE 30, 2000 -- CONTINUED
--------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 2)
---------- ------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION NOTES -- 1.5%
Federal National Mortgage Association Notes, 5.78%, 02/12/03 .............. $ 300,000 $ 292,302
Federal National Mortgage Association Notes, 6.56%, 12/10/07 .............. 500,000 473,976
Federal National Mortgage Association Notes, 6.16%, 07/09/08 .............. 500,000 464,644
------------
1,230,922
------------
GENERAL SERVICE ADMINISTRATION NOTES -- 0.7%
General Service Administration Notes, 6.27%, 05/15/20 ..................... 600,000 534,282
------------
TOTAL U.S. AGENCY OBLIGATIONS
(Cost $5,148,163) .................................................. 4,950,476
------------
U.S. TREASURY OBLIGATIONS -- 19.3%
U.S. TREASURY BONDS -- 13.9%
U.S. Treasury Bonds, 9.25%, 02/15/16 ...................................... 1,250,000 1,619,531
U.S. Treasury Bonds, 7.50%, 11/15/16 ...................................... 500,000 563,125
U.S. Treasury Bonds, 8.88%, 02/15/19 ...................................... 2,000,000 2,568,750
U.S. Treasury Bonds, 7.13%, 02/15/23 ...................................... 850,000 942,969
U.S. Treasury Bonds, 6.25%, 08/15/23 ...................................... 250,000 251,563
U.S. Treasury Bonds, 6.00%, 02/15/26 ...................................... 1,000,000 977,500
U.S. Treasury Bonds, 6.75%, 08/15/26 ...................................... 700,000 752,282
U.S. Treasury Bonds, 6.50%, 11/15/26 ...................................... 500,000 521,563
U.S. Treasury Bonds, 6.38%, 08/15/27 ...................................... 500,000 514,219
U.S. Treasury Bonds, 6.13%, 11/15/27 ...................................... 2,350,000 2,342,656
------------
11,054,158
------------
U.S. TREASURY NOTES -- 5.4%
U.S. Treasury Notes, 6.13%, 12/31/01 ...................................... 500,000 497,188
U.S. Treasury Notes, 6.25%, 02/28/02 ...................................... 550,000 548,234
U.S. Treasury Notes, 6.63%, 03/31/02 ...................................... 250,000 250,469
U.S. Treasury Notes, 5.88%, 02/15/04 ...................................... 400,000 394,500
U.S. Treasury Notes, 5.88%, 11/15/05 ...................................... 1,400,000 1,375,938
U.S. Treasury Notes, 7.00%, 07/15/06 ...................................... 750,000 776,954
U.S. Treasury Notes, 6.25%, 02/15/07 ...................................... 500,000 500,469
------------
4,343,752
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $14,762,954) ................................................. 15,397,910
------------
SHARES
------
PREFERRED STOCK -- 0.6%
ABN AMRO Cap Funding, Ser. B, 7.50% ...................................... 20,000 430,000
------------
TOTAL PREFERRED STOCK
(Cost $500,000) .................................................... 430,000
------------
The accompanying notes are an integral part of the financial statements.
30
<PAGE>
WT INVESTMENT TRUST I -- FIXED INCOME SERIES / INTERMEDIATE BOND SERIES
--------------------------------------------------------------------------------
INVESTMENTS / JUNE 30, 2000 -- CONTINUED
--------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT (NOTE 2)
---------- ------------
COMMERCIAL PAPER -- 1.3%
American Express, 6.88%, 07/03/00 ......................................... $1,069,782 $ 1,069,782
------------
TOTAL COMMERCIAL PAPER
(Cost $1,069,782) .................................................. 1,069,782
------------
TOTAL INVESTMENTS (Cost $79,672,763)+-- 98.6% .................................. 78,629,587
------------
OTHER ASSETS AND LIABILITIES, NET-- 1.4% ....................................... 1,084,097
------------
TOTAL NET ASSETS-- 100.0% ...................................................... $ 79,713,684
============
<FN>
+ The cost for federal income tax purposes. At June 30, 2000, net unrealized
depreciation was $1,043,176. This consisted of aggregate gross unrealized
appreciation for all securities, in which there was an excess of market value
over tax cost, of $1,086,371, and aggregate gross unrealized depreciation for
all securities, in which there was an excess of tax cost over market value,
of $2,129,547.
1 Although certain securities are not rated (NR) by either Moody's or S&P, they
have been determined to be of comparable quality to investment grade
securities by the investment adviser. The ratings shown are unaudited.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
31
<PAGE>
WT INVESTMENT TRUST I -- FIXED INCOME SERIES / MUNICIPAL BOND SERIES
--------------------------------------------------------------------------------
INVESTMENTS / JUNE 30, 2000
(Showing Percentage of Total Value of Net Assets)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MOODY'S/S&P PRINCIPAL VALUE
RATING1 AMOUNT (NOTE 2)
----------- --------- --------
<S> <C> <C> <C>
MUNICIPAL BONDS -- 96.9%
ALASKA -- 2.2%
Seward, AK Rev. Bonds (Alaska Sealife Center Proj.),
6.50%, 10/01/01 ......................................... NR, NR $ 360,000 $ 359,280
------------
DELAWARE -- 16.1%
Bethany Beach, DE Gen. Oblig. Rev. Bonds, 9.75%, 11/01/07 .. Aaa, AAA 160,000 206,342
Bethany Beach, DE Gen. Oblig. Rev. Bonds, 9.75%, 11/01/08 .. Aaa, AAA 180,000 237,362
Delaware River & Bay Auth. Rev. Bonds,, 5.40%, 01/01/14 .... Aaa, AAA 250,000 250,747
Delaware State Economic Dev. Auth. Rev. Bonds
(Delmarva Power & Light), 7.30%, 09/01/15 ............... Aaa, AAA 15,000 15,353
Delaware State Economic Dev. Auth. Rev. Bonds
(Osteopathic Hosp. Assoc.), Ser. 1993A, 6.00%, 01/01/03 . Aaa, NR 315,000 319,237
Delaware State Economic Dev. Auth. Rev. Bonds
(Student Hsg-Univ Courtyard), 5.38%, 08/01/11 ........... NR, AA 250,000 249,572
Delaware State Gen. Oblig. Rev. Bonds, Ser. A, 4.30%, 03/01/10 Aaa, AAA 500,000 463,040
Delaware State Housing Auth. Multi-family Mtge .............
Ref. Rev. Bonds, Ser. 1992C, 7.25%, 01/01/07 ............ A1, A 170,000 177,172
Delaware State Housing Auth. Multi-family Mtge .............
Ref. Rev. Bonds, Ser. 1992D, 6.35%, 07/01/03 ............ A1, NR 100,000 101,980
Delaware State Housing Auth. Sr. Home Mtge. Rev. Bonds,
Ser. 1991B-1, 6.40%, 12/01/02 ........................... Aa3, NR 25,000 25,408
Delaware State Solid Waste Auth. Rev. Bonds, 5.80%, 07/01/01 A2, A 500,000 506,440
Delaware Trans. Auth., Trans. & Del. Turnpike Rev. Bonds,
9.00%, 07/01/01 ......................................... Aaa, AAA 30,000 30,642
------------
2,583,295
------------
HAWAII -- 4.6%
Hawaii State Gen. Oblig. Rev. Bonds, Ser. 1992BW,
6.20%, 03/01/05 ........................................ A1, A+ 700,000 733,852
------------
ILLINOIS -- 2.5%
Illinois Educ. Fac. Auth. Rev. Bonds (Northwestern Univ.),
5.10%, 11/01/11 ......................................... Aa1, AA+ 400,000 396,080
------------
MARYLAND -- 2.9%
Anne Arundel County, MD Gen. Oblig. Refunding Water and
Sewer Ser. 99, 4.20%, 03/15/07 .......................... Aa1, AA+ 500,000 469,205
------------
MASSACHUSETTS -- 2.1%
Massachusetts Fed. Highway Grant Ant. Notes Ser. 98B,
5.13%, 12/15/14 ......................................... Aa3, NR 350,000 340,669
------------
MICHIGAN -- 2.9%
Belding, MI Area School Dist. Rev. Bonds, 4.95%, 05/01/14 .. Aaa, AAA 500,000 473,685
------------
MISSISSIPPI -- 2.5%
Medical Center Educ. Bldg. Corp. Rev. Bonds
(Univ. of Mississippi Medical Center Proj.), Ser. 1993,
5.40%, 12/01/05 ......................................... NR, A 400,000 398,420
------------
The accompanying notes are an integral part of the financial statements.
32
<PAGE>
WT INVESTMENT TRUST I -- FIXED INCOME SERIES / MUNICIPAL BOND SERIES
--------------------------------------------------------------------------------
INVESTMENTS / JUNE 30, 2000 -- CONTINUED
--------------------------------------------------------------------------------
MOODY'S/S&P PRINCIPAL VALUE
RATING1 AMOUNT (NOTE 2)
----------- --------- --------
NEW YORK -- 1.5%
Tsasc Inc., NY TFABS-Ser. 1 Plan Prin 2010, 5.88%, 07/15/15 Aa1, A $ 250,000 $ 248,573
------------
NORTH CAROLINA -- 1.6%
Charlotte, NC Storm Water Fee Rev. Bonds, 5.60%, 06/01/13 .. Aa2, AA+ 250,000 256,450
------------
OHIO -- 4.5%
Ohio State Pub. Fac. Community Mental Health Cap. Fac.,
Ser. 2-A , 5.13%, 06/01/05 .............................. Aa2, AA 715,000 725,368
------------
OKLAHOMA -- 2.6%
Oklahoma City, OK Gen. Oblig. Unltd., 5.50%, 07/01/05 ...... Aa2, AA 400,000 411,248
------------
PENNSYLVANIA -- 19.0%
Chester County, PA Ind. Dev. Auth. Wastewater Treatment Rev.
Bonds (Orleans Corp. Proj.), 7.00%, 11/01/06 ............ NR, NR 605,000 576,135
Harrisburg, PA Office & Parking Rev. Auth. Bonds
(Capital Assoc. Proj.), Ser. 1998A, 5.50%, 05/01/05 ..... NR, NR 500,000 481,090
New Morgan, PA Muni. Auth. Subordinated Office Rev. Ser. 1999 B,
5.38%, 06/01/03 ......................................... NR, NR 160,000 156,450
Penn Delco, PA School Dist., 4.50%, 02/15/12 ............... Aaa, AAA 250,000 227,620
Pennsylvania State Higher Educ. Fac. Auth. Rev. Bonds
(Philadelphia College of Osteopathic Medicine),
5.25%, 12/01/07 ......................................... NR, AAA 150,000 151,845
Pennsylvania State Higher Educ. Fac. Auth. Rev. Bonds,
Ser. 1992A, 6.63%, 08/15/09 ............................. Aaa, AAA 120,000 126,630
Philadelphia, PA Hospitals & Higher Educ. Fac. Auth. Rev. Bonds
(Jefferson Health Systems) Ser. 1997A, 5.50%, 05/15/05 .. A1, AA- 500,000 501,250
Westmoreland County, PA Ind. Dev. Auth. Rev. Bonds
(Landfill Gas Recycling- Lanchester Energy Partners),
Ser. 1998B, 6.80%, 01/01/05 ............................. NR, NR 500,000 479,205
York County, PA Ind. Dev. Auth. Personal Care Fac. Rev. Bonds,
9.50%, 10/01/02 ......................................... NR, NR 320,000 351,629
------------
3,051,854
------------
TEXAS -- 27.2%
Austin, TX Gen. Oblig. Rev. Bonds, 4.75%, 09/01/09 ......... Aa2, AA 315,000 306,829
Carrollton, TX Fmrs Brh Indpt. School Dist. Psf, 4.40%, 02/15/10 Aaa, AAA 250,000 229,535
Coppell, TX Indpt. School Dist., 0.00%, 08/15/07 ........... NR, AAA 500,000 345,065
Galena Park, TX Ind. School Dist., Gen. Oblig. Bond, 7.00%,
08/15/11 ................................................ Aaa, NR 250,000 284,280
Georgetown, TX Utility System Ref. Rev. Bonds, Ser. 1998A,
4.80%, 08/15/11 ......................................... Aaa, AAA 650,000 616,668
Houston, TX Ref. & Pub. Imp., Ser. A, 5.25%, 03/01/13 ...... Aa3, AA- 500,000 495,690
Klein, TX Isd Ref., 4.45%, 08/01/11 ........................ Aaa, AAA 275,000 250,407
Lubbock, TX Health Fac. Dev. Corp. Rev. Bonds
(St. Joseph Health Sys.), 5.00%, 07/01/08 ............... Aa3, AA 350,000 335,241
Texas A&M University Rev. Bonds, 5.90%, 05/15/08 ........... Aa, AA+ 400,000 409,556
Texas Water Dev. Board Rev., St Revolving Fd-Sr Lien-Ser. A,
5.25%, 07/15/11 ......................................... Aa1, AAA 500,000 501,315
The accompanying notes are an integral part of the financial statements.
33
<PAGE>
WT INVESTMENT TRUST I -- FIXED INCOME SERIES / MUNICIPAL BOND SERIES
--------------------------------------------------------------------------------
INVESTMENTS / JUNE 30, 2000 -- CONTINUED
--------------------------------------------------------------------------------
MOODY'S/S&P PRINCIPAL VALUE
RATING1 AMOUNT (NOTE 2)
----------- --------- --------
Texas Water Dev. Board Rev. Bonds, Ser. 1992, 6.00%, 07/15/13 Aa1, AAA $ 300,000 $ 308,784
University of Texas Ref. Rev. Bonds, Ser. 1992A, 6.25%, 07/01/1 Aaa, AAA 275,000 280,379
------------
4,363,749
------------
VIRGINIA -- 4.7%
Virginia State Housing Dev. Auth. Commonwealth Mtge. Rev ...
Bonds, Ser. 1992C-8, 5.80%, 07/01/04 .................... Aa1, AA+ 500,000 511,845
Virginia State Public Bldg. Auth. Ref. Rev. Bonds, Ser. 1996A,
5.00%, 08/01/12 ......................................... Aa, AA+ 250,000 245,458
------------
757,303
------------
TOTAL MUNICIPAL BONDS
(Cost $15,706,858) .................................................................. 15,569,031
------------
SHARES
----------
TAX-EXEMPT MUTUAL FUNDS -- 1.6%
Provident Municipal Tax-Exempt Cash Money Market Fund .................. 255,522 255,522
------------
TOTAL TAX-EXEMPT MUTUAL FUNDS
(Cost $255,522) ..................................................................... 255,522
------------
TOTAL INVESTMENTS (Cost $15,962,380)+-- 98.5% ................................................... 15,824,553
------------
OTHER ASSETS AND LIABILITIES, NET-- 1.5% ........................................................ 247,915
------------
TOTAL NET ASSETS-- 100.0% ....................................................................... $ 16,072,468
============
<FN>
+ The cost for federal income tax purposes. At June 30, 2000, net unrealized
depreciation was $137,827. This consisted of aggregate gross unrealized
appreciation for all securities, in which there was an excess of market value
over tax cost, of $134,152, and aggregate gross unrealized depreciation for
all securities, in which there was an excess of tax cost over market value, of
$271,979.
1 Although certain securities are not rated (NR) by either Moody's or S&P, they
have been determined to be of comparable quality to investment grade
securities by the investment adviser. The ratings shown are unaudited.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
34
<PAGE>
WT INVESTMENT TRUST I -- FIXED INCOME SERIES
--------------------------------------------------------------------------------
FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 2000
<TABLE>
<CAPTION>
SHORT/
INTERMEDIATE INTERMEDIATE MUNICIPAL
BOND SERIES BOND SERIES BOND SERIES
------------ ----------- -----------
<S> <C> <C> <C>
ASSETS:
Investment in securities, at value* $139,002,458 $78,629,587 $15,824,553
Receivable for contributions ...... 3,010 13,810 --
Dividends and interest receivable . 1,937,183 1,240,867 262,556
------------ ----------- -----------
Total assets ...................... 140,942,651 79,884,264 16,087,109
------------ ----------- -----------
LIABILITIES:
Payable for withdrawals ........... 17,056 130,000 --
Accrued advisory fee .............. 40,089 22,578 4,575
Other accrued expenses ............ 33,058 18,002 10,066
------------ ----------- -----------
Total liabilities ................. 90,203 170,580 14,641
------------ ----------- -----------
NET ASSETS ........................ $140,852,448 $79,713,684 $16,072,468
============ =========== ===========
*Investments at cost .............. $142,723,035 $79,672,763 $15,962,380
</TABLE>
The accompanying notes are an integral part of the financial statements.
35
<PAGE>
WT INVESTMENT TRUST I -- FIXED INCOME SERIES
--------------------------------------------------------------------------------
FINANCIAL STATEMENTS -- CONTINUED
--------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
SHORT/
INTERMEDIATE INTERMEDIATE MUNICIPAL
BOND SERIES1 BOND SERIES2 BOND SERIES2
------------ ------------ ------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends .......................................... $ -- $ 25,313 $ --
Interest ........................................... 7,334,768 3,872,499 552,767
----------- ---------- ---------
Total investment income ......................... 7,334,768 3,897,812 552,767
----------- ---------- ---------
EXPENSES:
Advisory fees ...................................... 410,767 200,869 35,966
Administration and accounting fees ................. 135,928 64,055 13,962
Custodian fees ..................................... 21,850 7,805 4,825
Trustees' fees ..................................... 7,925 3,960 3,960
Professional fees .................................. 4,755 -- --
Other .............................................. 7,208 5,870 3,515
----------- ---------- ---------
Total expenses before fee waivers and
expense reimbursement ......................... 588,433 282,559 62,228
Fees waived and expenses reimbursed ............. (48,980) -- --
----------- ---------- ---------
Total expenses, net .......................... 539,453 282,559 62,228
----------- ---------- ---------
Net investment income .............................. 6,795,315 3,615,253 490,539
----------- ---------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized loss from investment transactions ..... (887,945) (334,050) (72,797)
Net change in unrealized appreciation (depreciation)
of investments ................................... (3,026,072) 173,655 158,917
----------- ---------- ---------
Net loss on investments ............................ (3,914,017) (160,395) 86,120
----------- ---------- ---------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS .. $ 2,881,298 $3,454,858 $ 576,659
=========== ========== =========
<FN>
1 For the Fiscal Year ended June 30, 2000
2 For the Period November 1, 1999 (commencement of operations) through June 30,
2000.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
36
<PAGE>
WT INVESTMENT TRUST I -- FIXED INCOME SERIES
--------------------------------------------------------------------------------
FINANCIAL STATEMENTS -- CONTINUED
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
SHORT/INTERMEDIATE
BOND SERIES
FOR THE FISCAL YEARS ENDED
-----------------------------------
JUNE 30, 2000 JUNE 30, 1999
------------- -------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income ........................... $ 6,795,315 $ 3,431,704
Net realized gain (loss) on investments ......... (887,945) 93,666
Net change in unrealized appreciation
(depreciation) of investments ................. (3,026,072) (1,124,663)
------------ -----------
Net increase in net assets resulting from operations 2,881,298 2,400,707
------------ -----------
Transactions in beneficial interest:
Contributions ................................... 101,315,289 5,622,920
Withdrawals ..................................... (28,619,545) (3,901,709)
------------ -----------
Net increase in net assets from transactions
in beneficial interest ........................... 72,695,744 1,721,211
------------ -----------
Total increase in net assets ....................... 75,577,042 4,121,918
Net Assets:
Beginning of year ............................... 65,275,406 61,153,488
------------ -----------
End of year ..................................... $140,852,448 $65,275,406
============ ===========
INTERMEDIATE MUNICIPAL
BOND SERIES1 BOND SERIES1
------------ -----------
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income ........................... $ 3,615,253 $ 490,539
Net realized loss on investments ................ (334,050) (72,797)
Net change in unrealized appreciation
(depreciation) of investments .................. 173,655 158,917
------------ -----------
Net increase in net assets resulting from operations 3,454,858 576,659
------------ -----------
Transactions in beneficial interest:
Contributions ................................... 103,567,009 16,838,241
Withdrawals ..................................... (27,308,183) (1,342,432)
------------ -----------
Net increase in net assets from
transactions in beneficial interest .............. 76,258,826 15,495,809
------------ -----------
Total increase in net assets ....................... 79,713,684 16,072,468
NET ASSETS:
Beginning of period ............................. -- --
------------ -----------
End of period ................................... $ 79,713,684 $16,072,468
============ ===========
<FN>
1 For the Period November 1, 1999 (commencement of operations) through June 30,
2000.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
37
<PAGE>
WT INVESTMENT TRUST I -- FIXED-INCOME SERIES
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
1. DESCRIPTION OF THE TRUST. Short/Intermediate Bond Series, Intermediate Bond
Series, and Municipal Bond Series (the "Series") are series of WT Investment
Trust I (the "Trust"). The Trust is registered under the Investment Company
Act of 1940 (the "1940 Act") as an open-end management investment company and
was 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. These financial statements and
related notes pertain only to the Series. Information regarding other series
of the Trust are contained in separate reports to their investors.
2. SIGNIFICANT ACCOUNTING POLICIES. The following is a summary of the
significant accounting policies of the Series:
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 ask 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. Current market prices are generally not available for municipal
securities; current market prices may also be unavailable for other types of
fixed-income securities held by the Series. To determine the value of those
securities, the Series may use a pricing service that takes into account not
only developments related to the specific securities, but also transactions
in comparable securities. 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.
FEDERAL INCOME TAXES. Each Series is treated as a partnership entity for
Federal income tax purposes. Any interest, dividends and gains or losses of
the Series will be deemed to have been "passed through" to each partner.
Accordingly, no tax provision is recorded for the Series.
INVESTMENT INCOME. All of the net investment income and realized and
unrealized gains and losses from security transactions are allocated pro rata
among the investors in the Series on a daily basis.
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. Common expenses of the Trust are allocated on a pro
rata basis among the series based on relative net assets.
USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS. The preparation
of financial statements in conformity with accounting principles generally
accepted in the United States requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.
3. ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATEs. Effective November 1,
1999, Wilmington Trust Company ("WTC"), a wholly owned subsidiary of
Wilmington Trust Corporation, provides investment advisory services to each
Series. For its services, WTC receives a fee of 0.35% of each Series' first
$1 billion of average daily net assets; 0.30% of each Series' next $1 billion
of average daily net assets; and 0.25% of each Series'
38
<PAGE>
WT INVESTMENT TRUST I -- FIXED-INCOME SERIES
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
--------------------------------------------------------------------------------
average daily net assets in excess of $2 billion. For periods prior to
November 1, 1999, WTC and Kiewit Investment Management Corporation provided
advisory services to the Short/Intermediate Bond Series at an annual rate of
0.40% of average daily net assets.
Effective November 1, 1999, WTC has agreed to reimburse certain fund expenses
in an amount that will limit annual operating expenses (excluding taxes,
extraordinary expenses, brokerage commissions and interest) to not more than
0.55% of the average daily net assets of the Short/Intermediate Bond and
Intermediate Bond Series and 0.75% of the average daily net assets of the
Municipal Bond Series. These undertakings will remain in place until the
Board of Trustees approves its termination.
PFPC Inc. ("PFPC"), an indirect wholly owned subsidiary of PNC Bank Corp., a
multi-bank holding company, provides administrative and accounting services
to the Trust.
WTC serves as custodian to the Trust and PFPC Trust Company serves as
sub-custodian to the Trust.
4. INVESTMENT SECURITIES. During the period ended June 30, 2000, purchases and
sales of investment securities (excluding short-term investments) are
aggregated as follows:
<TABLE>
<CAPTION>
SHORT/INTERMEDIATE INTERMEDIATE MUNICIPAL
BOND SERIES BOND SERIES1 BOND SERIES1
------------------ ------------ ------------
<S> <C> <C> <C>
Purchases .................................. $49,524,842 $44,199,622 $7,659,685
Sales ...................................... 60,966,599 49,176,190 8,024,773
</TABLE>
5. FINANCIAL HIGHLIGHTS.
<TABLE>
<CAPTION>
INTERMEDIATE MUNICIPAL
BOND SERIES1 BOND SERIES1
------------ ------------
<S> <C> <C>
Total Return ..................................... 4.00%** 3.70%**
Expense Ratios:
Including expense limitation .................. 0.49%* 0.61%*
Excluding expense limitation .................. 0.49%* 0.61%*
Net Investment Income Ratio ...................... 6.30%* 4.77%*
Portfolio Turnover Rate .......................... 53.23% 50.26%
</TABLE>
<TABLE>
<CAPTION>
FOR THE FISCAL YEAR ENDED JUNE 30,
SHORT/INTERMEDIATE BOND SERIES 2000 1999 1998 1997(2)
-------------------------------------------------------
<S> <C> <C> <C> <C>
Total Return .................................... 4.23% N/A N/A N/A
Expense Ratios:
Including expense limitation ................. 0.47% 0.41% 0.45% 0.42%*
Excluding expense limitation ................. 0.51% 0.63% 0.53% 0.52%*
Net Investment Income Ratio ..................... 5.94% 5.39% 5.68% 5.88%*
Portfolio Turnover Rate ......................... 47.23% 34.40% 236.36% 51.57%
<FN>
1 For the period November 1, 1999 (commencement of operations) through June
30, 2000.
2 For the period March 1, 1997 (commencement of operations) through June 30,
1997.
* Annualized.
** Not annualized.
N/A Not available.
</FN>
</TABLE>
39
<PAGE>
WT INVESTMENT TRUST I -- FIXED-INCOME SERIES
--------------------------------------------------------------------------------
REPORT OF INDEPENDENT AUDITORS
--------------------------------------------------------------------------------
REPORT OF ERNST &YOUNG LLP, INDEPENDENT AUDITORS
To Beneficial Interest Holders and Trustees of WT Investment Trust I:
We have audited the accompanying statements of assets and liabilities, including
the schedules of investments, of WT Investment Trust I (Short/Intermediate Bond,
Intermediate Bond and Municipal Bond Series) (the "Series") as of June 30, 2000,
and the related statements of operations and statements of changes in net assets
for each of the periods indicated therein. These financial statements are the
responsibility of the Series' management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of securities owned as of June 30, 2000, by
correspondence with the Series' custodian and brokers. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of each of the respective Series
at June 30, 2000, and the results of their operations and the changes in their
net assets for each of the periods indicated therein, in conformity with
accounting principles generally accepted in the United States.
/s/ Ernst & Young LLP
Philadelphia, Pennsylvania
August 4, 2000
40
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<PAGE>
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<PAGE>
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<PAGE>
TRUSTEES
Robert H. Arnold
Eric Brucker
Robert J. Christian
Nicholas A. Giordano
Louis Klein Jr.
Clement C. Moore, II
John J. Quindlen
William P. Richards
---------------------
OFFICERS
Robert J. Christian, PRESIDENT
Eric Cheung, VICE PRESIDENT
Joseph M. Fahey, Jr., VICE PRESIDENT
John R. Giles, VICE PRESIDENT
Eugene A. Trainer, III, VICE PRESIDENT
Gary M. Gardner, SECRETARY
Pat Colletti, TREASURER
---------------------
INVESTMENT ADVISER
Wilmington Trust Company
Rodney Square North
1100 North Market Street
Wilmington, DE 19890
---------------------
CUSTODIAN
Wilmington Trust Company
Rodney Square North
1100 North Market Street
Wilmington, DE 19890
---------------------
DISTRIBUTOR
Provident Distributors, Inc.
3200 Horizon Drive
King of Prussia, PA 19406
---------------------
ADMINISTRATOR,
TRANSFER AGENT AND
ACCOUNTING AGENT
PFPC Inc.
400 Bellevue Parkway
Wilmington, DE 19809
---------------------
THIS ANNUAL REPORT IS AUTHORIZED FOR DISTRIBUTION ONLY TO SHAREHOLDERS AND TO
OTHERS WHO HAVE RECEIVED A CURRENT PROSPECTUS OF THE WILMINGTON FIXED INCOME
PORTFOLIOS.
WFIP-ANN-6/00
