WILMINGTON
FUNDS
FIXED INCOME
PORTFOLIOS
SEMI-ANNUAL
DECEMBER 31, 1999
<PAGE>
WILMINGTON FUNDS -- FIXED INCOME PORTFOLIOS
- -------------------------------------------
PRESIDENT'S MESSAGE
- --------------------------------------------------------------------------------
DEAR SHAREHOLDER:
Over the last six months the U.S. economy has experienced a rapid increase
in energy prices and three interest rate increases yet has still managed to post
strong overall growth and modest inflation levels. At the wholesale level oil
prices have more than doubled since January 1999 and, as a result, consumer
prices for gasoline, fuel oil, etc., have risen dramatically. Twenty years ago,
this rate of increase was partially responsible for a recession. More recently,
gas price increases are mere irritants. This is because of the muted position of
the energy sector within overall economic activity in the United States. In 1980
the energy sector comprised 8.5% of total economic activity. Today that ratio is
3%. Certainly, the energy price advance will have a near term impact on
inflation. But, it is not likely to be severe and should dissipate as 2000
progresses.
In response to a rise in inflation, however modest, and an ongoing strong
economic growth rate, the Federal Reserve (the "Fed") has engineered three
interest rate increases since the end of June. Their stated concern is that the
strong economy will interact with a tight labor market and thereby cause an
increase in wages and ultimately consumer prices, i.e., inflation. As of yet
there is little evidence of this inflationary spike. Compensation increases for
the twelve months ended in September averaged 4.6% compared with 5.6% one year
earlier. Moreover worker productivity is growing at a 3% pace. As a result, unit
labor costs (the cost of labor associated with the production of goods and
services) are growing at a very modest pace, 1.5%. With this modest inflation
level it is easy to misunderstand the Fed's actions. The Fed is doing just what
it should be doing. It wants to be certain that inflation does not gain a
foothold in the U.S., which would cause much greater pain in the future.
Our expectations for next year are for more of the same for the U.S.
economy. Due to ongoing strength in consumer and business spending, and renewed
strength in our foreign sector, economic growth should average 3% to 3.5% next
year. Inflation rates could rise modestly early next year as a result of energy
prices but continued positive forces in worker productivity and worldwide
competition should keep inflation in the 2% to 2.5% range. Interest rates will
continue to be buffeted by both of these forces and will probably rise into
early 2000. But, as economic activity settles in at a more subdued 3% to 3.5%
pace, and as inflation remains under control, the Fed should move to the
sidelines. Thus, an early 2000 interest rate hike is likely but we believe that
none will be necessary thereafter in 2000. Long-term interest rates have largely
anticipated the next interest rate hike and should not rise further. It is our
expectation that long-term interest rates will end 2000 at lower levels than
currently.
MANAGEMENT'S DISCUSSION OF PORTFOLIO PERFORMANCE
WILMINGTON SHORT/INTERMEDIATE BOND AND INTERMEDIATE BOND PORTFOLIOS
The last half of 1999 saw a continuation of the bear market that began
shortly after the height of the global financial crisis in October of 1998. The
Fed entered the picture during this time period raising interest rates three
times to eliminate the rate cuts made to help shore up the economy against the
financial crisis in 1998. Interest rates moved up nearly a full percentage point
for 1-Year Treasury securities while 30-Year bonds rose a slightly smaller but
still impressive 65 basis points. During this difficult environment, our
strategy for both the Short/Intermediate Bond Portfolio and Intermediate Bond
Portfolio has been to keep the interest rate sensitivity of the portfolio below
market levels and to emphasize yield enhancement through investments in the
non-Treasury sectors of the fixed income market. The duration of the Portfolios
was kept roughly 3% to 5% below the index levels to help protect from
1
<PAGE>
WILMINGTON FUNDS -- FIXED INCOME PORTFOLIOS
- -------------------------------------------
PRESIDENT'S MESSAGE
- --------------------------------------------------------------------------------
the principal declines caused by rising rates. Our yield enhancement efforts
were particularly successful through our holdings of TPSA NOTES, AT&T CAPITAL,
CABLE and WIRELESS, and REPUBLIC OF KOREA. Each of these holdings outperformed
the corporate bond market and added to our relative performance.
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 will normally be fully invested with an average maturity in the 5 to
10 year range.
The story for the second half of 1999 continued to be one of domestic
economic strength and Y2K fears were added to the picture. Liquidity became
paramount and put many market participants on hold. The municipal market
continued to see lighter supply, but now mutual funds began to experience large
redemptions as investors were taking tax swap losses and putting new money to
work in the exploding equity markets. Individual retail buyers were the only
pocket of demand for municipal bonds. The Portfolio experienced modest outflows
during the third quarter and we sold positions that were "retail friendly",
i.e., bonds trading around par in specialty states to cover these redemptions.
We remained cautious through the fourth quarter, but began to bring the
Portfolio's average maturity to a more neutral position versus the target index.
With the continued potential of Federal Reserve rate increases, the 1 to 10-year
range of the yield curve would exhibit the most risk, but during the fourth
quarter this range was in great demand. We used this opportunity to sell bonds
in the 5 to 7-year range and to purchase bonds in the 12 to 15-year range. We
bought issues in states that were experiencing above average supply, namely
Delaware and New York. At year-end 1999, the Portfolio had an average maturity
of 6.6 years, a duration of 5.1 years, and an average coupon of 5.46%, versus
the target Merrill Lynch Index of 6.9 years, 5.4 years and 5.41%, respectively.
We invite your comments and questions and we thank you for your investment
in the Wilmington Fixed Income Portfolios. We look forward to reviewing our
investment outlook and stategy with you in our next report to shareholders.
Sincerely,
/S/ROBERT J. CHRISTIAN
Robert J. Christian
February 23, 2000 President
2
<PAGE>
WILMINGTON FUNDS -- FIXED INCOME PORTFOLIOS
- -------------------------------------------
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
December 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
SHORT/
INTERMEDIATE INTERMEDIATE MUNICIPAL
BOND PORTFOLIO BOND PORTFOLIO BOND PORTFOLIO
--------------- -------------- ---------------
<S> <C> <C> <C>
ASSETS:
Investment in Series, at value ......................... $143,157,620 $87,887,306 $15,184,170
Receivable for Portfolio shares sold ................... 75,399 5,018 --
Receivable for investment in Series withdrawn .......... 82,733 14,143 7,028
Other assets ........................................... 257 60,289 8
------------ ----------- -----------
Total assets ........................................... 143,316,009 87,966,756 15,191,206
------------ ----------- -----------
LIABILITIES:
Dividends payable ...................................... 668,606 449,400 59,607
Payable for Portfolio shares redeemed .................. 82,733 14,143 7,028
Payable for investment in Series ....................... 75,399 5,018 --
Other accrued expenses ................................. 9,683 16,603 6,386
------------ ----------- -----------
Total liabilities ...................................... 836,421 485,164 73,021
------------ ----------- -----------
NET ASSETS ............................................. $142,479,588 $87,481,592 $15,118,185
============ =========== ===========
NET ASSETS CONSIST OF:
Paid-in capital ........................................ $147,531,331 $90,177,984 $15,457,557
Accumulated net realized loss on investment ............ (273,464) (207,131) (21,564)
Net unrealized appreciation (depreciation) of investment (4,778,279) (2,489,261) (317,808)
------------ ----------- -----------
NET ASSETS ............................................. $142,479,588 $87,481,592 $15,118,185
============ =========== ===========
Shares of beneficial interest outstanding .............. 14,769,303 9,380,806 1,243,736
============ =========== ===========
NET ASSET VALUE, offering and redemption price per share $9.65 $9.33 $12.16
===== ===== ======
</TABLE>
The accompanying notes are an integral part of the financial statements.
3
<PAGE>
WILMINGTON FUNDS -- FIXED INCOME PORTFOLIOS
- -------------------------------------------
FINANCIAL STATEMENTS -- CONTINUED
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
For the Six-Month Period Ended December 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
SHORT/
INTERMEDIATE INTERMEDIATE MUNICIPAL
BOND PORTFOLIO BOND PORTFOLIO BOND PORTFOLIO
-------------- -------------- --------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Investment income from Series ...................... $ 1,498,806 $ 978,574 $ 136,316
Expenses from Series ............................... (117,889) (72,870) (15,642)
----------- ----------- ---------
Net investment income from Series ............... 1,380,917 905,704 120,674
Interest income .................................... 1,844,304 1,939,076 285,020
----------- ----------- ---------
Total investment income ......................... 3,225,221 2,844,780 405,694
----------- ----------- ---------
EXPENSES:
Advisory fees ...................................... 104,868 104,407 19,054
Administration fees ................................ 38,962 38,830 14,444
Transfer agent fees ................................ 23,274 19,178 1,902
Trustees' fees ..................................... 1,798 1,859 2,079
Amortization of organizational expenses ............ -- 4,182 --
Registration fees .................................. 4,264 11,201 2,175
Professional fees .................................. 20,968 24,686 4,870
Other .............................................. 28,334 21,154 10,462
----------- ----------- ---------
Total expenses before expense reimbursements .... 222,468 225,497 54,986
Expenses reimbursed ............................. (44,653) (52,973) (1,721)
Administration/Accounting fees waived ........... -- -- (9,000)
----------- ----------- ---------
Total expenses, net .......................... 177,815 172,524 44,265
----------- ----------- ---------
Net investment income .............................. 3,047,406 2,672,256 361,429
----------- ----------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investment transactions (270,474) (172,539) 25,783
Net change in unrealized appreciation (depreciation)
of investments .................................. (2,050,254) (2,392,025) (342,717)
----------- ----------- ---------
Net loss on investments ............................ (2,320,728) (2,564,564) (316,934)
----------- ----------- ---------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS .................................... $ 726,678 $ 107,692 $ 44,495
=========== =========== =========
</TABLE>
The accompanying notes are an integral part of the financial statements.
4
<PAGE>
WILMINGTON FUNDS -- FIXED INCOME PORTFOLIOS
- -------------------------------------------
FINANCIAL STATEMENTS -- CONTINUED
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the Six-Month Period Ended December 31, 1999 (Unaudited)
<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 .............................. $ 3,047,406 $ 2,672,256 $ 361,429
Net realized gain (loss) on investment transactions (270,474) (172,539) 25,783
Net change in unrealized appreciation (depreciation)
of investments .................................. (2,050,254) (2,392,025) (342,717)
------------ ------------ -----------
Net increase in net assets resulting from operations 726,678 107,692 44,495
------------ ------------ -----------
Distributions to shareholders:
Net investment income .............................. (3,047,406) (2,672,256) (361,429)
Net realized gain .................................. (321,387) (218,273) (93,771)
------------ ------------ -----------
Total distributions ................................... (3,368,793) (2,890,529) (455,200)
------------ ------------ -----------
Portfolio share transactions (a):
Proceeds from shares sold .......................... 9,093,554 13,416,032 66,784
Net assets from merger (Note 5) .................... 52,330,738 -- --
Cost of shares issued on reinvestment of
distributions ................................... 2,268,444 2,729,513 357,883
Cost of shares redeemed ............................ (7,953,533) (13,178,342) (1,508,035)
------------ ------------ -----------
Net increase (decrease) in net assets from
share transactions ................................. 55,739,203 2,967,203 (1,083,368)
------------ ------------ -----------
Total increase (decrease) in net assets ............... 53,097,088 184,366 (1,494,073)
------------ ------------ -----------
NET ASSETS:
Beginning of period ................................ 89,382,500 87,297,226 16,612,258
------------ ------------ -----------
End of period ...................................... $142,479,588 $ 87,481,592 $15,118,185
============ ============ ===========
(a)TRANSACTIONS IN CAPITAL STOCK WERE:
Shares sold ........................................ 2,669,300 1,405,570 5,406
Shares issued from merger .......................... 5,358,114 -- --
Shares issued on reinvestment of distributions ..... 97,110 286,745 29,035
Shares redeemed .................................... (310,320) (1,380,104) (122,167)
============ ============ ===========
Net increase (decrease) in shares .................. 7,814,204 312,211 (87,726)
Shares outstanding -- Beginning balance ............ 6,955,099 9,068,595 1,331,462
============ ============ ===========
Shares outstanding -- Ending balance ............... 14,769,303 9,380,806 1,243,736
============ ============ ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
WILMINGTON FUNDS -- FIXED INCOME PORTFOLIOS
- -------------------------------------------
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 increase (decrease) in net assets resulting
from operations ................................. (199,761) (1,425,987) (37,059)
------------ ------------ -----------
Distributions to shareholders:
Net investment income .............................. (3,385,441) (3,482,345) (501,010)
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 increase (decrease) in net assets from Portfolio
share transactions ................................. (1,492,269) (471,408) (342,356)
------------ ------------ -----------
Total increase (decrease) in net assets ............... (5,214,872) (5,704,277) (967,129)
------------ ------------ -----------
NET ASSETS:
Beginning of year .................................. 94,597,372 93,001,503 17,579,387
------------ ------------ -----------
End of year ........................................ $ 89,382,500 $ 87,297,226 $16,612,258
============ ============ ===========
(A)TRANSACTIONS IN CAPITAL STOCK 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 increase (decrease) in shares .................. 117,085 (56,687) (27,192)
Shares outstanding -- Beginning balance ............ 7,072,184 9,125,282 1,358,654
------------ ------------ -----------
Shares outstanding -- Ending balance ............... 6,955,099 9,068,595 1,331,462
============ ============ ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
6
<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 FOR THE PERIOD
SIX-MONTHS NOVEMBER 1,
ENDED 1998 FOR THE FISCAL YEARS
DECEMBER 31, THROUGH ENDED OCTOBER 31,
1999(DAGGER) JUNE 30, ----------------------------------------------------------
(UNAUDITED) 1 1999(DAGGER) 1998(DAGGER) 1997(DAGGER) 1996(DAGGER) 1995(DAGGER)
-------------- ------------- ------------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
SHORT/INTERMEDIATE BOND PORTFOLIO
NET ASSET VALUE -- BEGINNING
OF PERIOD ...................... $ 9.86 $ 10.27 $ 10.03 $ 9.94 $ 10.04 $ 9.53
-------- ------- ------- ------- ------- -------
INVESTMENT OPERATIONS:
Net investment income .......... 0.28 0.41 0.58 0.59 0.60 0.64
Net realized and unrealized gain
(loss) on investments ....... (0.18) (0.11) 0.24 0.09 (0.10) 0.51
-------- ------- ------- ------- ------- -------
Total from investment
operations ............... 0.10 0.30 0.82 0.68 0.50 1.15
-------- ------- ------- ------- ------- -------
DISTRIBUTIONS:
From net investment income ..... (0.28) (0.41) (0.58) (0.59) (0.60) (0.64)
From net realized gain ......... (0.03) (0.30) -- -- -- --
-------- ------- ------- ------- ------- -------
Total distributions ......... (0.31) (0.71) (0.58) (0.59) (0.60) (0.64)
-------- ------- ------- ------- ------- -------
NET ASSET VALUE -- END OF PERIOD... $ 9.65 $ 9.86 $ 10.27 $ 10.03 $ 9.94 $ 10.04
======== ======= ======= ======= ======= =======
TOTAL RETURN ...................... 1.00%** (0.27)%** 8.40% 7.13% 5.18% 12.41%
RATIOS (TO AVERAGE NET ASSETS)/
SUPPLEMENTAL DATA:
Expenses:
Including expense limitations 0.53%* 0.55%* 0.59% 0.65% 0.65% 0.65%
Excluding expense limitations 0.65%* 0.67%* 0.83% 1.12% 1.09% 1.14%
Net investment income .......... 5.66%* 5.47%* 5.64% 5.98% 6.07% 6.56%
Portfolio turnover ................ N/A 29.71% 40.66% 83.54% 85.77% 116.40%
Net assets at end of period (000) . $142,480 $89,383 $94,597 $31,456 $31,777 $32,214
<FN>
* Annualized.
** Not annualized.
(DAGGER) 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 ratio and net investment income
ratios include expenses allocated from the Series.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
7
<PAGE>
WILMINGTON FUNDS -- FIXED INCOME PORTFOLIOS
- -------------------------------------------
FINANCIAL HIGHLIGHTS -- CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE
SIX-MONTHS
ENDED FOR THE PERIOD FOR THE PERIOD
DECEMBER 31, NOVEMBER 1, 1998 JUNE 29, 1998(DAGGER)
1999 THROUGH THROUGH
(UNAUDITED) 1 JUNE 30, 1999 OCTOBER 31, 1998
-------------- ---------------- ---------------------
<S> <C> <C> <C>
INTERMEDIATE BOND PORTFOLIO
NET ASSET VALUE -- BEGINNING OF PERIOD ...... $ 9.63 $ 10.19 $ 10.00
------- ------- -------
INVESTMENT OPERATIONS:
Net investment income .................... 0.29 0.38 0.20
Net realized and unrealized gain (loss) on
investments ........................... (0.28) (0.53) 0.19
------- ------- -------
Total from investment operations ...... 0.01 (0.15) 0.39
------- ------- -------
DISTRIBUTIONS:
From net investment income ............... (0.29) (0.38) (0.20)
From net realized gain ................... (0.02) (0.03) --
------- ------- -------
Total distributions ................... (0.31) (0.41) (0.20)
------- ------- -------
NET ASSET VALUE -- END OF PERIOD ............ $ 9.33 $ 9.63 $ 10.19
======= ======= =======
TOTAL RETURN** .............................. 0.10% (1.52)% 3.89%
RATIOS (TO AVERAGE NET ASSETS)/
SUPPLEMENTAL DATA:
Expenses:
Including expense limitations* ........ 0.55% 0.55% 0.55%
Excluding expense limitations* ........ 0.67% 0.67% 0.66%
Net investment income* ................... 5.97% 5.71% 5.69%
Portfolio turnover .......................... N/A 18.23% 17.66%
Net assets at end of period (000) ........... $87,482 $87,297 $93,002
<FN>
(DAGGER) Commencement of Operations.
* Annualized.
** Not annualized.
1 Effective November 1, 1999, the expense ratio and net investment income
ratios include expenses allocated from the Series.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
8
<PAGE>
WILMINGTON FUNDS -- FIXED INCOME PORTFOLIOS
- -------------------------------------------
FINANCIAL HIGHLIGHTS -- CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE
SIX-MONTHS
ENDED FOR THE PERIOD
DECEMBER 31, NOVEMBER 1, 1998 FOR THE FISCAL YEARS ENDED OCTOBER 31,
1999 THROUGH --------------------------------------
(UNAUDITED) 1 JUNE 30, 1999 1998 1997 1996 1995
-------------- ----------------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
MUNICIPAL BOND PORTFOLIO
NET ASSET VALUE -- BEGINNING
OF PERIOD ............................ $ 12.48 $ 12.94 $ 12.74 $ 12.46 $ 12.49 $ 11.64
------- ------- ------- ------- ------- -------
INVESTMENT OPERATIONS:
Net investment income ................ 0.28 0.36 0.56 0.55 0.55 0.54
Net realized and unrealized gain
(loss) on investments ............. (0.24) (0.40) 0.20 0.28 (0.03) 0.85
------- ------- ------- ------- ------- -------
Total from investment
operations ..................... 0.04 (0.04) 0.76 0.83 0.52 1.39
------- ------- ------- ------- ------- -------
DISTRIBUTIONS:
From net investment income ........... (0.28) (0.36) (0.56) (0.55) (0.55) (0.54)
From net realized gain ............... (0.08) (0.06) -- -- -- --
------- ------- ------- ------- ------- -------
Total distributions ............... (0.36) (0.42) (0.56) (0.55) (0.55) (0.54)
------- ------- ------- ------- ------- -------
NET ASSET VALUE -- END OF
PERIOD ............................... $ 12.16 $ 12.48 $ 12.94 $ 12.74 $ 12.46 $ 12.49
======= ======= ======= ======= ======= =======
TOTAL RETURN ........................... 0.29%** (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...... 0.88%* 0.90%* 1.23% 1.52% 1.37% 1.45%
Net investment income ................ 4.50%* 4.29%* 4.35% 4.42% 4.41% 4.50%
Portfolio turnover ...................... N/A 19.13% 43.72% 28.56% 15.91% 42.08%
Net assets at end of period (000) ....... $15,118 $16,612 $17,579 $17,446 $16,619 $16,570
<FN>
* Annualized.
** Not annualized.
1 Effective November 1, 1999, the expense ratio and net investment income
ratios include expenses allocated from the Series.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
9
<PAGE>
WILMINGTON FUNDS -- FIXED INCOME PORTFOLIOS
- -------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
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 (the "1940 Act") 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.
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
the corresponding series of WT Investment Trust I (the "Series") having the
same investment objective, policies and limitation as the Portfolios. 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.
INVESTMENT INCOME AND DISTRIBUTIONS TO SHAREHOLDERS. The Portfolios record
their share of the respective Series' income, expenses and realized and
unrealized gains and losses daily. Additionally, each Portfolio records its
own expenses as incurred. Distributions to shareholders of 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.
DEFERRED ORGANIZATION COSTS. Organization costs incurred by the Intermediate
Bond Portfolios have been deferred and are being amortized using the
straight-line method over a five-year period beginning on the date it
commenced operations. In the event that any of the initial shares of the
Portfolio are redeemed during the amortization period by any holder thereof,
the redemption proceeds will be reduced by any unamortized organization
expenses in the same proportion as the number of initial shares being
redeemed bears to the number of initial shares outstanding at the time of
such redemption.
USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS. The preparation
of financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect
the reported 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.
10
<PAGE>
WILMINGTON FUNDS -- FIXED INCOME PORTFOLIOS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- CONTINUED
- --------------------------------------------------------------------------------
3. INVESTMENT TRANSACTIONS. During the six-month period ended December 31, 1999,
contributions to and withdrawals from the Series were as follows:
SHORT/INTERMEDIATE INTERMEDIATE MUNICIPAL
BOND PORTFOLIO BOND PORTFOLIO BOND PORTFOLIO
-----------------------------------------------------
Contributions ...... $96,571,935 $96,119,762 $15,772,019
Withdrawals ........ 16,837,318 6,440,406 368,436
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 and Intermediate Bond
Portfolios and 0.75% of the average daily net assets of the Municipal Bond
Portfolio. These undertakings may be amended or rescinded at any time in the
future.
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 Funds 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 Reorganizations were treated as non-taxable events and accordingly the
Wilmington Portfolios' basis in the securities acquired reflects 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 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 objectives, policies and restrictions 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 restrictions 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
11
<PAGE>
WILMINGTON FUNDS -- FIXED INCOME PORTFOLIOS
- -------------------------------------------
NOTICE TO SHAREHOLDERS (UNAUDITED)
- --------------------------------------------------------------------------------
SPECIAL MEETINGS OF SHAREHOLDERS
A special meeting of the shareholders of the Rodney Square Funds was held on
October 22, 1999 to vote on the following proposal:
1. To approve an Agreement and Plan of Reorganization (the "Plan") for each
Rodney Square Fund providing for the transfer of the Rodney Square Funds' assets
to a newly-created Fund ("a Successor Fund") in exchange for shares of equal
value of the Successor Fund.
<TABLE>
<CAPTION>
FOR AGAINST ABSTAINED
-------------- ----------- --------------
<S> <C> <C> <C>
Rodney Square Strategic Fixed Income Fund
Short/Intermediate Bond Portfolio 5,894,611 465 1,254
Intermediate Portfolio 8,829,000 0 0
Municipal Bond Portfolio 872,611 2,763 9,687
</TABLE>
12
<PAGE>
WT INVESTMENT TRUST I -- FIXED INCOME SERIES
- --------------------------------------------
SEMI-ANNUAL REPORT / DECEMBER 31, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
(The following pages should be read in conjunction with Wilmington Funds --
Fixed Income Portfolios' Financial Statements.)
The accompanying notes are an integral part of the financial statements.
13
<PAGE>
WT INVESTMENT TRUST I -- FIXED INCOME SERIES / SHORT/INTERMEDIATE BOND SERIES
- -----------------------------------------------------------------------------
INVESTMENTS / DECEMBER 31, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MOODY'S/S&P PRINCIPAL VALUE
RATING AMOUNT (NOTE 2)
---------- -------------- ----------
<S> <C> <C> <C>
CORPORATE BONDS -- 41.3%
BANKS -- 3.7%
Amsouth Bank of Alabama, 6.45%, 02/01/18 ..................... A1, A- $ 250,000 $ 228,437
BankAmerica Corp., 6.75%, 09/15/05 ........................... Aa3, A 750,000 724,687
National City Bank Cleveland, 6.50%, 05/01/03 ................ A1, A 1,200,000 1,176,000
NationsBank Corp., 6.50%, 08/15/03 ........................... Aa3, A 1,000,000 976,250
St. George Bank, Ltd., 7.15%, 06/18/07 ....................... Baa1, A- 750,000 728,437
Union Bank Switzerland, New York, 7.25%, 07/15/06 ............ Aa2, AA 800,000 773,000
Wachovia Corp., 6.70%, 06/21/04 .............................. Aa3, AA- 750,000 733,125
------------
5,339,936
------------
FINANCIAL -- 17.4%
Abbey National PLC, 6.69%, 10/17/05 .......................... Aa3, AA- 675,000 647,156
Associates Corp., NA, 6.00%, 06/15/01 ........................ Aa3, AA- 200,000 197,750
Associates Corp., NA, 6.75%, 08/01/01 ........................ Aa3, AA- 900,000 897,750
Bear Stearns Co., Inc., 6.45%, 08/01/02 ...................... A2, A 1,000,000 980,000
Bear Stearns Co., Inc., 6.63%, 10/01/04 ...................... A2, A 850,000 819,187
Commercial Credit Co., 8.70%, 06/15/09 ....................... Aa3, AA- 850,000 904,187
Crestar Financial Corp., 6.50%, 01/15/08 ..................... A2, A 700,000 653,625
Equifax, Inc., 6.30%, 07/01/05 ............................... A3, A- 300,000 282,000
First Chicago, 7.63%, 01/15/03 ............................... A2, A 400,000 403,000
First Union Corp., 6.82%, 08/01/06 ........................... A2, A- 200,000 192,104
Ford Motor Credit Co., 7.00%, 09/25/01 ....................... A1, A+ 1,400,000 1,401,750
Ford Motor Credit Co., 7.75%, 11/15/02 ....................... A1, A+ 300,000 304,875
General Electric Capital Corp., 8.13%, 05/15/12 .............. Aaa, AAA 250,000 260,000
General Motors Acceptance Corp., 7.00%, 08/15/01 ............. A2, A 1,650,000 1,650,000
General Motors Acceptance Corp., 6.75%, 02/07/02 ............. A2, A 1,000,000 992,500
Goldman Sachs Group, 6.65%, 05/15/09 ......................... A1, A+ 2,100,000 1,953,000
Household Finance Corp., 7.25%, 07/15/03 ..................... A2, A 1,000,000 997,500
J. P. Morgan & Co., Inc., 6.00%, 01/15/09 .................... A2, A+ 1,800,000 1,611,000
Lehman Brothers Holdings, Inc., 6.50%, 10/01/02 .............. A3, A 600,000 587,250
Lehman Brothers Holdings, Inc., 7.38%, 05/15/04 .............. A3, A 1,200,000 1,188,000
Lehman Brothers Holdings, Inc., 6.63%, 02/05/06 .............. A3, A 1,725,000 1,621,500
Merrill Lynch & Co., Inc. Sr. Notes, 6.00%, 02/17/09 ........ Aa3, AA- 1,300,000 1,163,500
Morgan Stanley, Dean Witter, Discover & Co., 6.75%, 03/04/03 . Aa3, A+ 950,000 938,125
Morgan Stanley, Dean Witter, Discover & Co., 6.88%, 03/01/07 . Aa3, A+ 1,000,000 966,250
Norwest Financial, Inc., 6.38%, 11/15/01 ..................... Aa3, A+ 750,000 743,437
Pitney Bowes Credit Corp., 6.63%, 06/01/02 ................... Aa3, AA 800,000 797,000
TPSA Finance BV, 7.75%, 12/10/08 ............................. Baa3, BBB- 1,500,000 1,396,875
USL Capital Corp., 5.79%, 01/23/01 ........................... A1, A+ 300,000 296,625
------------
24,845,946
------------
INDUSTRIAL -- 14.0%
Allied Signal, 8.00%, 05/15/06 ............................... A2, A 500,000 514,795
Amoco Co., 6.25%, 10/15/04 ................................... Aa1, AA+ 400,000 386,500
Anheuser Busch Cos., 5.38%, 09/15/08 ......................... A1, A+ 400,000 350,500
Bausch & Lomb, Inc., 6.38%, 08/01/03 ......................... Baa2, BBB 950,000 910,812
Bausch & Lomb, Inc., 6.75%, 12/15/04 ......................... Baa2, BBB 1,000,000 963,750
Coca Cola Put Asset Trust, 6.00%, 03/15/01 ................... A2, A 750,000 741,562
</TABLE>
The accompanying notes are an integral part of the financial statements.
14
<PAGE>
WT INVESTMENT TRUST I -- FIXED INCOME SERIES / SHORT/INTERMEDIATE BOND SERIES
- -----------------------------------------------------------------------------
INVESTMENTS / DECEMBER 31, 1999 (UNAUDITED) -- CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MOODY'S/S&P PRINCIPAL VALUE
RATING AMOUNT (NOTE 2)
---------- -------------- ----------
<S> <C> <C> <C>
Cooper Tire and Rubber, 7.25%, 12/16/02 ...................... A3, BBB+ $2,250,000 $ 2,224,688
Dayton Hudson Corp., 6.40%, 02/15/03 ......................... A3, A- 1,200,000 1,167,000
EG&G, Inc., 6.80%, 10/15/05 .................................. Baa1, BBB+ 1,000,000 980,000
Elf Aquitane, 8.00%, 10/15/01 ................................ Aa3, AA- 300,000 306,000
IBM Corp., 5.10%, 11/10/03 ................................... A1, A+ 500,000 466,875
Ingersoll - Rand, 6.02%, 02/15/01 ............................ A3, A- 1,300,000 1,282,125
J Seagram & Sons, 6.25%, 12/15/01 ............................ Baa3, BBB- 950,000 932,187
Nabisco, Inc., 6.00%, 02/15/01 ............................... Baa2, BBB 1,000,000 986,250
Nabisco, Inc., 6.13%, 02/01/03 ............................... Baa2, BBB 1,600,000 1,528,000
Penney ( J.C.) Co., 6.13%, 11/15/03 .......................... A3, BBB+ 1,000,000 925,000
Praxair, Inc., 6.75%, 03/01/03 ............................... A3, BBB+ 1,000,000 972,500
Safeway, Inc., 5.88%, 11/15/01 ............................... Baa2, BBB 1,000,000 977,500
TRW, Inc. Notes , 6.63%, 06/01/04 ............................ Baa1, BBB 1,000,000 958,750
Tyco International Group, 6.13%, 06/15/01 .................... Baa1, A- 1,000,000 982,500
Wal Mart Notes, 6.88%, 08/10/09 .............................. Aa2, AA 700,000 681,625
Walt Disney Co. Notes, 5.62%, 12/01/08 ....................... A2, A 1,000,000 876,250
------------
20,115,169
------------
NATIONAL GOVERNMENT -- 0.6%
Korea Export - Import Bank, 7.10%, 03/15/02 .................. Baa2, BBB 900,000 883,125
------------
TELECOMMUNICATIONS -- 1.7%
GTE Southwest, Ser. 1993B, 6.54%, 12/01/05 ................... A2, AA- 1,000,000 960,000
Northwestern Bell Telephone Co., 9.50%, 05/01/00 ............. A2, A+ 500,000 504,375
United Telecom, 9.50%, 04/01/03 .............................. Baa1, BBB+ 900,000 951,750
------------
2,416,125
------------
TRANSPORTATION -- 0.7%
Norfolk Southern Corp., 7.35%, 05/15/07 ...................... Baa1, BBB+ 950,000 925,062
------------
UTILITIES -- 3.2%
Central Illinois Public Services, 6.73%, 06/01/01 ............ Aa1, AA- 700,000 698,250
Citizens Utilities Co., 7.60%, 06/01/06 ...................... A2, A+ 1,000,000 998,750
Hawaiian Electric Industry, 6.49%, 06/12/02 .................. Baa2, BBB 550,000 539,000
Ohio Power Co., Ser. 1997A, 6.73%, 11/01/04 .................. Baa1, A- 400,000 381,000
Oklahoma Gas & Electric, 6.50%, 07/15/04 ..................... A1, A+ 1,000,000 965,000
Southern California Edison, 5.88%, 01/15/01 .................. A2, A 1,000,000 991,250
------------
4,573,250
------------
TOTAL CORPORATE BONDS
(Cost $61,348,021) ..................................................................... 59,098,613
------------
ASSET BACKED SECURITIES -- 13.8%
Advanta Mortgage Loan Trust, Ser. 1996-1, Cl. A6,
6.73%, 08/25/23 ........................................... Aaa, AAA 500,000 486,157
Advanta Mortgage Loan Trust, Ser.1993-3, Cl. A5,
5.55%, 01/25/25 ........................................... Aaa, AAA 94,636 88,479
AFC Home Equity Loan Trust, Ser. 1996-2, Cl. A4,
7.74%, 09/25/27 ........................................... Aaa, AAA 1,020,266 996,719
</TABLE>
The accompanying notes are an integral part of the financial statements.
15
<PAGE>
WT INVESTMENT TRUST I -- FIXED INCOME SERIES / SHORT/INTERMEDIATE BOND SERIES
- -----------------------------------------------------------------------------
INVESTMENTS / DECEMBER 31, 1999 (UNAUDITED) -- CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MOODY'S/S&P PRINCIPAL VALUE
RATING AMOUNT (NOTE 2)
---------- -------------- ----------
<S> <C> <C> <C>
Contimortgage Home Equity Loan Trust, Ser. 1996-1, Cl. A6,
6.69%, 01/15/16 ........................................... Aaa, AAA $ 499,996 $ 491,363
Contimortgage Home Equity Loan Trust Ser. 1998-2, Cl. A5,
6.28%, 09/15/16 ........................................... Aaa, AAA 1,300,000 1,261,465
Contimortgage Home Equity Loan Trust, Ser. 1999-2, Cl. A4,
6.48%, 07/25/23 ........................................... Aaa, AAA 1,000,000 961,313
Crown Home Equity Loan Trust, Ser. 1996-1, Cl. A4,
7.15%, 08/25/12 ........................................... Aaa, AAA 1,000,000 941,776
Federal National Mortgage Association Notes, Ser. 1995-W1,
Cl. A6, 8.10%, 04/25/25 ................................... NR, NR 1,015,207 1,015,770
First Plus Home Loan Trust, Ser.1996-2, Cl. A6,
7.85%, 08/20/13 ........................................... Aaa, AAA 491,315 493,364
First Sierra Equipment Contact Trust, Ser. 1998-1, Cl. A4,
5.63%, 08/12/04 ........................................... Aaa, AAA 1,500,000 1,442,242
General Electric Capital Mortgage Services, Inc.,
Ser. 1996-HE2, Cl. A5, 7.94%, 06/25/14 .................... Aaa, NR 1,000,000 1,004,587
Greenpoint Manufactured Housing, Ser. 1999-1, Cl. A2,
6.01%, 08/15/15 ........................................... Aaa, AAA 1,000,000 970,747
Green Tree Financial Corp., Ser. 1995-2, Cl. A6,
8.30%, 05/15/26 ........................................... Aaa, AAA 925,000 949,516
Green Tree Home Equity Loan Trust Ser. 1999-D, Cl. A3,
7.30%, 08/15/18 ........................................... NR, AAA 2,000,000 1,968,018
Green Tree Home Improvement Loan Trust, Ser. 1996-F,
Cl. HEA3, 6.90%, 01/15/28 ................................. NR, AAA 110,872 110,849
Green Tree Lease Finance, Ser. 1997-1, Cl. A3,
6.17%, 09/20/05 ........................................... NR, AAA 449,184 443,112
IMC Home Equity Loan Trust, Ser. 1997-5, Cl. A7,
6.90%, 01/20/22 ........................................... Aaa, AAA 900,000 884,116
MBNA Master Credit Card Trust, Ser. 1995-F, Cl. A,
6.60%, 01/15/03 ........................................... Aaa, AAA 800,000 801,820
Oakwood Mortgage Investors, Inc., Ser.1998-B, Cl. A2,
6.15%, 07/15/11 ........................................... NR, AAA 840,763 834,226
The Money Store Home Equity Trust, Ser. 1992-D2,
Cl. A3, 7.55%, 01/15/18 ................................... Aaa, AAA 302,611 301,744
The Money Store Home Equity Trust, Ser. 1996-B,
Cl. A8, 7.91%, 05/15/24 ................................... Aaa, AAA 750,000 745,988
UCFC Home Equity Loan, Ser. 1998-B, Cl. A2,
6.01%, 09/15/14 ........................................... Aaa, AAA 1,000,000 993,097
Vanderbilt Mortgage Finance, Ser. 1999-C, Cl. A2,
7.09%, 11/07/13 ........................................... NR, AAA 1,100,000 1,090,296
Vanderbilt Mortgage Finance, Ser. 1996-A, Cl. A3,
6.85%, 04/07/26 ........................................... NR, AAA 435,872 428,513
------------
TOTAL ASSET BACKED SECURITIES
(Cost $20,229,030) ..................................................................... 19,705,277
------------
MORTGAGE-BACKED SECURITIES -- 4.1%
Federal Home Loan Mortgage Corp., 2073 PJ,
6.00%, 10/15/23 .......................................................... 500,000 458,739
Federal Home Loan Mortgage Corp., CMO 2129,
5.75%, 09/15/11 .......................................................... 1,650,000 1,556,429
</TABLE>
The accompanying notes are an integral part of the financial statements.
16
<PAGE>
WT INVESTMENT TRUST I -- FIXED INCOME SERIES / SHORT/INTERMEDIATE BOND SERIES
- -----------------------------------------------------------------------------
INVESTMENTS / DECEMBER 31, 1999 (UNAUDITED) -- CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 2)
-------------- ----------
<S> <C> <C>
Federal Home Loan Mortgage Corp., Gold 15 Yr.,
6.00%, 01/01/13 .......................................................... $ 985,671 $ 936,388
Federal National Mortgage Association Notes, 7 Yr Balloon,
6.00%, 01/01/06 .......................................................... 420,929 404,750
Federal National Mortgage Association Notes, 7 Yr Balloon,
6.00%, 02/01/06 .......................................................... 228,675 219,886
Federal National Mortgage Association Notes, 7 Yr Balloon,
6.00%, 02/01/06 .......................................................... 355,085 341,437
Federal National Mortgage Association Notes, Ser. 1993-50, Cl. D,
6.25%, 07/25/04 .......................................................... 400,000 388,827
Federal National Mortgage Association Notes, Ser. 1996-4, Cl. VC,
6.50%, 07/25/02 .......................................................... 225,206 222,788
Federal National Mortgage Association Notes, Ser. 1999-W5, Cl. A4,
6.12%, 02/25/29 .......................................................... 1,000,000 921,541
Federal National Mortgage Association Notes, Ser.1998-W3, Cl. A2,
6.50%, 07/25/28 .......................................................... 470,389 463,670
------------
TOTAL MORTGAGE-BACKED SECURITIES
(Cost $6,228,327) ...................................................................... 5,914,455
------------
U.S. AGENCY OBLIGATIONS -- 11.1%
FEDERAL HOME LOAN BANK NOTES -- 1.6%
Federal Home Loan Bank Notes, 6.41%, 04/10/01 ............................... 300,000 299,837
Federal Home Loan Bank Notes, 5.88%, 08/15/01 ............................... 1,150,000 1,139,731
Federal Home Loan Bank Notes, 5.25%, 04/25/02 ............................... 900,000 874,630
------------
2,314,198
------------
FEDERAL HOME LOAN MORTGAGE CORPORATION NOTES -- 0.9%
Federal Home Loan Mortgage Corp. Notes, 7.05%, 06/08/05 ..................... 500,000 485,970
Federal Home Loan Mortgage Corp. Notes, 5.95%, 01/19/06 ..................... 850,000 808,624
------------
1,294,594
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION NOTES -- 8.6%
Federal National Mortgage Association Notes, 5.42%, 01/23/01 ................ 1,000,000 990,260
Federal National Mortgage Association Notes, 6.41%, 02/06/02 ................ 650,000 648,079
Federal National Mortgage Association Notes, 6.25%, 11/15/02 ................ 2,500,000 2,475,955
Federal National Mortgage Association Notes, 5.78%, 02/12/03 ................ 750,000 723,759
Federal National Mortgage Association Notes, 5.13%, 02/13/04 ................ 558,000 524,731
Federal National Mortgage Association Notes, 6.50%, 08/15/04 ................ 2,000,000 1,975,593
Federal National Mortgage Association Notes, 5.75%, 06/15/05 ................ 2,300,000 2,187,424
Federal National Mortgage Association Notes, 6.56%, 12/10/07 ................ 1,100,000 1,043,316
Federal National Mortgage Association Notes, 6.16%, 07/09/08 ................ 1,275,000 1,168,108
Federal National Mortgage Association Notes, 6.00%, 09/24/08 ................ 600,000 541,973
------------
12,279,198
------------
TOTAL U.S. AGENCY OBLIGATIONS
(Cost $16,393,178) ..................................................................... 15,887,990
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
17
<PAGE>
WT INVESTMENT TRUST I -- FIXED INCOME SERIES / SHORT/INTERMEDIATE BOND SERIES
- -----------------------------------------------------------------------------
INVESTMENTS / DECEMBER 31, 1999 (UNAUDITED) -- CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 2)
-------------- ----------
<S> <C> <C>
U.S. TREASURY OBLIGATIONS -- 26.1%
U.S. Treasury Notes, 6.25%, 05/31/00 ........................................ $ 300,000 $ 300,629
U.S. Treasury Notes, 8.75%, 08/15/00 ........................................ 150,000 152,673
U.S. Treasury Notes, 5.75%, 10/31/00 ........................................ 2,400,000 2,393,300
U.S. Treasury Notes, 6.25%, 04/30/01 ........................................ 2,350,000 2,351,512
U.S. Treasury Notes, 6.63%, 07/31/01 ........................................ 600,000 603,556
U.S. Treasury Notes, 6.50%, 08/31/01 ........................................ 3,150,000 3,161,873
U.S. Treasury Notes, 7.50%, 11/15/01 ........................................ 350,000 357,552
U.S. Treasury Notes, 5.88%, 11/30/01 ........................................ 3,750,000 3,724,827
U.S. Treasury Notes, 6.13%, 12/31/01 ........................................ 1,400,000 1,396,501
U.S. Treasury Notes, 6.25%, 01/31/02 ........................................ 1,000,000 999,554
U.S. Treasury Notes, 6.25%, 02/28/02 ........................................ 1,500,000 1,499,248
U.S. Treasury Notes, 6.25%, 06/30/02 ........................................ 500,000 499,655
U.S. Treasury Notes, 5.50%, 01/31/03 ........................................ 1,350,000 1,318,679
U.S. Treasury Notes, 5.88%, 02/15/04 ........................................ 150,000 147,400
U.S. Treasury Notes, 7.25%, 05/15/04 ........................................ 550,000 566,313
U.S. Treasury Notes, 7.25%, 08/15/04 ........................................ 2,000,000 2,061,551
U.S. Treasury Notes, 7.50%, 02/15/05 ........................................ 1,500,000 1,563,971
U.S. Treasury Notes, 6.50%, 05/15/05 ........................................ 300,000 300,049
U.S. Treasury Notes, 6.88%, 05/15/06 ........................................ 2,000,000 2,033,995
U.S. Treasury Notes, 7.00%, 07/15/06 ........................................ 2,500,000 2,560,022
U.S. Treasury Notes, 6.50%, 10/15/06 ........................................ 3,600,000 3,589,482
U.S. Treasury Notes, 6.25%, 02/15/07 ........................................ 1,650,000 1,623,764
U.S. Treasury Notes, 6.13%, 08/15/07 ........................................ 1,600,000 1,560,444
U.S. Treasury Notes, 5.63%, 05/15/08 ........................................ 800,000 752,341
U.S. Treasury Notes, 11.75%, 02/15/10 ....................................... 650,000 790,658
U.S. Treasury Notes, 7.25%, 05/15/16 ........................................ 750,000 783,970
U.S. Treasury Notes, 6.88%, 08/15/25 ........................................ 300,000 305,427
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $38,587,485) ..................................................................... 37,398,946
------------
COMMERCIAL PAPER -- 2.3%
American Express, 1.00%, 01/03/00 ........................................... 2,036,437 2,036,437
Conoco, Inc., 8.00%, 01/10/00 ............................................... 1,250,000 1,247,500
------------
TOTAL COMMERCIAL PAPER
(Cost $3,283,937) ...................................................................... 3,283,937
------------
TOTAL INVESTMENTS (Cost $146,069,978)(DAGGER) -- 98.7% ............................................. 141,289,218
------------
OTHER ASSETS AND LIABILITIES, NET -- 1.3% .......................................................... 1,950,375
------------
TOTAL NET ASSETS -- 100.0% ......................................................................... $143,239,593
============
<FN>
(DAGGER) The cost for federal income tax purposes. At December 31, 1999, net
unrealized depreciation was $4,780,760. This consisted of aggregate gross
unrealized appreciation for all securities, in which there was an excess of
market value over tax cost of $36,073, and aggregate gross unrealized
depreciation for all securities, in which there was an excess of tax cost
over market value of $4,816,833.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
18
<PAGE>
WT INVESTMENT TRUST I -- FIXED INCOME SERIES / INTERMEDIATE BOND SERIES
- -----------------------------------------------------------------------
INVESTMENTS / DECEMBER 31, 1999 (UNAUDITED)
- --------------------------------------------------------------------------
<TABLE>
<CAPTION>
MOODY'S/S&P PRINCIPAL VALUE
RATING AMOUNT (NOTE 2)
---------- ------------- ----------
<S> <C> <C> <C>
CORPORATE BONDS -- 42.5%
BANKS -- 6.4%
Amsouth Bank of Alabama, 6.45%, 02/01/18 .................... A1, A- $ 200,000 $ 182,750
Citicorp, 7.25%, 10/15/11 ................................... A1, A+ 1,000,000 957,500
J.P. Morgan & Co., 6.25%, 02/15/11 .......................... A2, A+ 1,000,000 892,500
Korea Development Bank 144A, 7.13%, 09/17/01 ................ Baa2, BBB 1,300,000 1,288,625
St. George Bank, Ltd., 7.15%, 06/18/07 ...................... Baa1, A- 400,000 388,500
Swiss Bank Corp., New York, 7.00%, 10/15/15 ................. Aa2, AA 1,000,000 936,250
Union Bank Switzerland, New York, 7.25%, 07/15/06 ........... Aa2, AA 600,000 579,750
Wachovia Corp., 6.25%, 08/04/08 ............................. A1, A+ 400,000 369,500
-----------
5,595,375
-----------
FINANCIAL -- 15.8%
Abbey National PLC, 6.69%, 10/17/05 ......................... Aa3, AA- 1,100,000 1,054,625
Ameritech Capital Funding, 6.45%, 01/15/18 .................. Aa3, AA+ 1,700,000 1,481,125
Associates Corp., NA, 5.75%, 11/01/03 ....................... Aa3, AA- 500,000 476,875
Associates Corp., NA, 7.75%, 02/15/05 ....................... Aa3, AA- 1,000,000 1,016,250
Bear Stearns Co., Inc., 6.63%, 10/01/04 ..................... A2, A 400,000 385,500
CIT Group Holdings, Inc., 6.38%, 08/01/02 ................... A1, A+ 500,000 491,250
Commercial Credit Co., 8.70%, 06/15/09 ...................... Aa3, AA- 1,200,000 1,276,500
Crestar Financial Corp., 6.50%, 01/15/08 .................... A2, A 500,000 466,875
First Union Corp., 6.82%, 08/01/06 .......................... A2, A- 651,000 625,299
General Electric Capital Corp., 8.13%, 05/15/12 ............. Aaa, AAA 700,000 728,000
General Motors Acceptance Corp., 7.00%, 08/15/01 ............ A2, A 500,000 500,000
Goldman Sachs Group, 6.65%, 05/15/09 ........................ A1, A+ 1,500,000 1,395,000
Lehman Brothers Holdings, Inc., 6.50%, 10/01/02 ............. A3, A 900,000 880,875
Lehman Brothers Holdings, Inc., 7.38%, 05/15/04 ............. A3, A 750,000 742,500
Lehman Brothers Holdings, Inc., 6.63%, 02/05/06 ............. A3, A 500,000 470,000
Monsanto Co. Debentures Series 144A, 6.85%, 12/01/28 ........ A2, A 700,000 594,125
Morgan Stanley, Dean Witter, Discover & Co.,
6.75%, 03/04/03 .......................................... Aa3, A+ 500,000 493,750
TPSA Finance BV 144A, 7.75%, 12/10/08 ....................... Baa3, BBB 800,000 745,000
-----------
13,823,549
-----------
GOVERNMENT, NATIONAL -- 0.6%
Korea Export - Import Bank, 7.10%, 03/15/02 ................. Baa2, BBB 550,000 539,688
-----------
INDUSTRIAL -- 13.4%
AKZO Nobel, Inc., 6.00%, 11/15/03 ........................... A2, A 600,000 568,500
Amoco Co., 6.25%, 10/15/04 .................................. Aa1, AA+ 500,000 483,125
Bausch & Lomb, Inc., 6.38%, 08/01/03 ........................ Baa2, BBB 700,000 671,125
Coca Cola Put Asset Trust, 6.00%, 03/15/01 .................. A2, A 1,500,000 1,483,125
Conoco, Inc., 6.95%, 04/15/29 ............................... A3, A- 650,000 587,438
Elf Aquitane, 8.00%, 10/15/01 ............................... Aa3, AA- 600,000 612,000
Eli Lilly, 8.13%, 12/01/01 .................................. Aa3, AA 600,000 612,750
Harvard University, 8.13%, 04/15/07 ......................... Aaa, AAA 500,000 517,500
Ingersoll-Rand, 6.02%, 02/15/28 ............................. A3, A- 500,000 493,125
International Business Machines Corp., 6.50%, 01/15/28 ...... A1, A+ 500,000 441,875
</TABLE>
The accompanying notes are an integral part of the financial statements.
19
<PAGE>
WT INVESTMENT TRUST I -- FIXED INCOME SERIES / INTERMEDIATE BOND SERIES
- -----------------------------------------------------------------------
INVESTMENTS / DECEMBER 31, 1999 (UNAUDITED) -- CONTINUED
- --------------------------------------------------------------------------
<TABLE>
<CAPTION>
MOODY'S/S&P PRINCIPAL VALUE
RATING AMOUNT (NOTE 2)
---------- ------------- ----------
<S> <C> <C> <C>
J Seagram & Sons, 6.25%, 12/15/01 ........................... Baa3, BBB- $ 500,000 $ 490,625
Nabisco, Inc., 6.13%, 02/01/03 .............................. Baa2, BBB 700,000 668,500
Safeway Inc, 5.88%, 11/15/01 ................................ Baa2, BBB 1,000,000 977,500
TRW, Inc., 6.63%, 06/01/04 .................................. Baa1, BBB 1,400,000 1,342,250
Tyco International Group, 6.13%, 06/15/01 ................... Baa1, A- 600,000 589,500
Wal Mart Notes, 6.88%, 08/10/09 ............................. Aa2, AA 400,000 389,500
Walt Disney Co. Notes, 5.62%, 12/01/08 ...................... A2, A 1,000,000 876,250
-----------
11,804,688
-----------
TELECOMMUNICATIONS -- 2.6%
AT&T Corp., 6.50%, 03/15/29 ................................. A1, AA- 450,000 384,750
GTE Southwest, Ser. 1993-B, 6.54%, 12/01/05 ................. A2, AA- 500,000 480,000
MCI Worldcom, Inc., 6.50%, 04/15/10 ......................... A3, A- 400,000 371,000
Sprint Corp., 9.50%, 04/01/03 ............................... Baa1, BBB+ 1,000,000 1,057,500
-----------
2,293,250
-----------
TRANSPORTATION -- 1.2%
Norfolk Southern Corp., 7.35%, 05/15/07 ..................... Baa1, BBB+ 1,100,000 1,071,125
-----------
UTILITIES -- 2.5%
Hawaiian Electric Industry, 6.49%, 06/12/02 ................. Baa2, BBB 1,000,000 980,000
Oklahoma Gas & Electric, 6.50%, 07/15/04 .................... A1, A+ 1,250,000 1,206,250
-----------
2,186,250
-----------
TOTAL CORPORATE BONDS
(Cost $38,834,578) ..................................................................... 37,313,925
-----------
SHARES
----------
PREFERRED STOCK -- 0.5%
ABN AMRO Cap Funding, Ser. B, 7.50% .......................................... 20,000 416,250
-----------
TOTAL PREFERRED STOCK
(Cost $500,000) ........................................................................ 416,250
-----------
ASSET-BACKED SECURITIES -- 17.4%
Advanta Mortgage Loan Trust, Ser. 1993-3, Cl. A5,
5.55%, 01/25/25 .......................................... Aaa, AAA $ 189,273 176,957
AFC Home Equity Loan Trust, Ser. 1993-1, Cl. A,
5.90%, 05/20/08 .......................................... Aaa, AAA 523,810 509,725
AFC Home Equity Loan Trust, Ser. 1996-2, Cl. 1A4,
7.74%, 09/25/27 .......................................... Aaa, AAA 600,156 586,305
Crown Home Equity Loan Trust, Ser. 1996-1, Cl. A4,
7.15%, 08/25/12 .......................................... Aaa, AAA 1,400,000 1,318,486
Federal National Mortgage Association Notes, Ser. 1995-W1,
Cl. A6, 8.10%, 04/25/25 .................................. NR, NR 1,015,207 1,015,770
First Plus Home Loan Trust, Ser. 1996-2, Cl. A6,
7.85%, 08/20/13 .......................................... Aaa, AAA 982,630 986,728
General Electric Capital Mortgage Services, Inc.,
Ser. 1997-HE4, Cl. A3, 6.59%, 12/25/12 ................... Aaa, NR 750,000 745,980
</TABLE>
The accompanying notes are an integral part of the financial statements.
20
<PAGE>
WT INVESTMENT TRUST I -- FIXED INCOME SERIES / INTERMEDIATE BOND SERIES
- -----------------------------------------------------------------------
INVESTMENTS / DECEMBER 31, 1999 (UNAUDITED) -- CONTINUED
- --------------------------------------------------------------------------
<TABLE>
<CAPTION>
MOODY'S/S&P PRINCIPAL VALUE
RATING AMOUNT (NOTE 2)
---------- ------------- ----------
<S> <C> <C> <C>
Green Tree Financial Corp., Ser. 1995-2, Cl. A6,
8.30%, 05/15/26 .......................................... Aaa, AAA $ 400,000 $ 410,602
Green Tree Home Improvement Loan Trust, Ser. 1996-C,
Cl. HEA4, 7.80%, 06/15/26 ................................ NR, AAA 2,000,000 2,013,232
Green Tree Lease Finance, Ser. 1997-1, Cl. A4,
6.27%, 09/20/05 .......................................... NR, AAA 750,000 740,153
IMC Home Equity Loan Trust, Ser. 1997-5, Cl. A7,
6.90%, 01/20/22 .......................................... Aaa, AAA 500,000 491,175
MBNA Master Credit Card Trust, Ser. 1995-F, Cl. A,
6.60%, 01/15/03 .......................................... Aaa, AAA 500,000 501,138
Oakwood Mortgage Investors, Inc., Ser. 1998-B, Cl. A2,
6.15%, 07/15/11 .......................................... NR, AAA 653,927 648,842
The Money Store Home Equity Trust, Ser. 1992-D2, Cl. A3,
7.55%, 01/15/18 .......................................... Aaa, AAA 527,129 525,618
The Money Store Home Equity Trust, Ser. 1995-A, Cl. 5,
8.40%, 02/15/24 .......................................... Aaa, AAA 800,000 820,131
The Money Store Home Equity Trust, Ser. 1996-B, Cl. A8,
7.91%, 05/15/24 .......................................... Aaa, AAA 2,000,000 1,989,302
UCFC Home Equity Loan Trust, Ser. 1998-B, Cl. A2,
6.01%, 09/15/14 .......................................... Aaa, AAA 1,000,000 993,098
Vanderbilt Mortgage Finance, Ser. 1996-A, Cl. A3,
6.85%, 04/07/26 .......................................... Aaa, NR 871,744 857,025
-----------
TOTAL ASSET-BACKED SECURITIES
(Cost $15,697,051) ..................................................................... 15,330,267
-----------
MORTGAGE-BACKED SECURITIES -- 1.4%
Federal Home Loan Mortgage Corp. Notes, 2073 PJ (Pac),
6.00%, 10/15/23 ........................................................... 300,000 275,243
Federal Home Loan Mortgage Corp. Notes, CMO 2129 PE,
5.75%, 09/15/11 ........................................................... 400,000 377,316
Federal Home Loan Mortgage Corp. Notes, Gold 15 Yr.,
6.00%, 01/01/13 ........................................................... 657,114 624,259
-----------
TOTAL MORTGAGE-BACKED SECURITIES
(Cost $1,348,311) ...................................................................... 1,276,818
-----------
U.S. AGENCY OBLIGATIONS -- 5.4%
FEDERAL HOME LOAN BANK NOTES -- 1.2%
Federal Home Loan Bank Notes, 5.88%, 08/15/01 ................................ 500,000 495,535
Federal Home Loan Bank Notes, 5.30%, 10/29/02 ................................ 600,000 576,336
-----------
1,071,871
-----------
FEDERAL HOME LOAN MORTGAGE CORPORATION NOTES -- 1.5%
Federal Home Loan Mortgage Corp. Notes, 7.05%, 06/08/05 ...................... 1,000,000 971,940
Federal Home Loan Mortgage Corp. Notes, 5.95%, 01/19/06 ...................... 350,000 332,963
-----------
1,304,903
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
21
<PAGE>
WT INVESTMENT TRUST I -- FIXED INCOME SERIES / INTERMEDIATE BOND SERIES
- -----------------------------------------------------------------------
INVESTMENTS / DECEMBER 31, 1999 (UNAUDITED) -- CONTINUED
- --------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 2)
-------------- -----------
<S> <C> <C>
FEDERAL NATIONAL MORTGAGE ASSOCIATION NOTES -- 2.1%
Federal National Mortgage Association Notes, 6.41%, 02/06/02 ................. $ 600,000 $ 598,227
Federal National Mortgage Association Notes, 5.78%, 02/12/03 ................. 300,000 289,504
Federal National Mortgage Association Notes,
6.56%, 12/10/07 ........................................................... 500,000 474,234
Federal National Mortgage Association Notes,
6.16%, 07/09/08 ........................................................... 500,000 458,081
-----------
1,820,046
-----------
GENERAL SERVICE ADMINISTRATION NOTES -- 0.6%
General Service Administration Notes, 6.27%, 05/15/20 ........................ 600,000 527,100
-----------
TOTAL U.S. AGENCY OBLIGATIONS
(Cost $4,975,856) ...................................................................... 4,723,920
-----------
U.S. TREASURY OBLIGATIONS -- 26.8%
U.S. TREASURY BONDS -- 19.3%
U.S. Treasury Bonds, 9.25%, 02/15/16 ......................................... 1,250,000 1,543,298
U.S. Treasury Bonds, 7.50%, 11/15/16 ......................................... 2,950,000 3,156,217
U.S. Treasury Bonds, 8.75%, 05/15/17 ......................................... 500,000 596,954
U.S. Treasury Bonds, 8.88%, 02/15/19 ......................................... 2,000,000 2,433,896
U.S. Treasury Bonds, 8.00%, 11/15/21 ......................................... 1,250,000 1,418,517
U.S. Treasury Bonds, 7.25%, 08/15/22 ......................................... 1,500,000 1,581,651
U.S. Treasury Bonds, 7.13%, 02/15/23 ......................................... 850,000 884,382
U.S. Treasury Bonds, 6.25%, 08/15/23 ......................................... 250,000 235,723
U.S. Treasury Bonds, 6.88%, 08/15/25 ......................................... 2,500,000 2,545,227
U.S. Treasury Bonds, 6.00%, 02/15/26 ......................................... 1,000,000 914,636
U.S. Treasury Bonds, 6.75%, 08/15/26 ......................................... 700,000 702,942
U.S. Treasury Bonds, 6.50%, 11/15/26 ......................................... 500,000 487,248
U.S. Treasury Bonds, 6.38%, 08/15/27 ......................................... 500,000 479,920
-----------
16,980,611
-----------
U.S. TREASURY NOTES -- 7.5%
U.S. Treasury Notes, 6.50%, 08/31/01 ......................................... 250,000 250,053
U.S. Treasury Notes, 6.13%, 12/31/01 ......................................... 500,000 498,750
U.S. Treasury Notes, 6.25%, 01/31/02 ......................................... 450,000 449,799
U.S. Treasury Notes, 6.25%, 02/28/02 ......................................... 550,000 549,724
U.S. Treasury Notes, 6.63%, 03/31/02 ......................................... 250,000 251,797
U.S. Treasury Notes, 5.88%, 02/15/04 ......................................... 400,000 393,067
U.S. Treasury Notes, 7.25%, 08/15/04 ......................................... 1,500,000 1,546,164
U.S. Treasury Notes, 5.88%, 11/15/05 ......................................... 1,400,000 1,358,863
U.S. Treasury Notes, 7.00%, 07/15/06 ......................................... 750,000 768,006
U.S. Treasury Notes, 6.25%, 02/15/07 ......................................... 500,000 492,050
-----------
6,558,273
-----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $23,734,440) ..................................................................... 23,538,884
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
22
<PAGE>
WT INVESTMENT TRUST I -- FIXED INCOME SERIES / INTERMEDIATE BOND SERIES
- -----------------------------------------------------------------------
INVESTMENTS / DECEMBER 31, 1999 (UNAUDITED) -- CONTINUED
- --------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 2)
------------ -----------
<S> <C> <C>
COMMERCIAL PAPER -- 4.8%
American Express, 1.00%, 01/03/00 ............................................ $2,198,180 $ 2,198,180
Conoco Inc. Discount, 8.00%, 01/10/00 ........................................ 2,000,000 1,996,000
-----------
TOTAL COMMERCIAL PAPER
(Cost $4,194,180) ...................................................................... 4,194,180
-----------
TOTAL INVESTMENTS (Cost $89,283,527)(DAGGER) -- 98.8% .............................................. 86,794,244
OTHER ASSETS AND LIABILITIES, NET -- 1.2% .......................................................... 1,094,054
-----------
TOTAL NET ASSETS -- 100.0% ......................................................................... $87,888,298
===========
<FN>
(DAGGER) The cost for federal income tax purposes. At December 31, 1999, net
unrealized depreciation was $2,489,283. This consisted of aggregate gross
unrealized appreciation for all securities, in which there was an excess of
market value over tax cost of $897,360, and aggregate gross unrealized
depreciation for all securities, in which there was an excess of tax cost
over market value of $3,386,643.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
23
<PAGE>
WT INVESTMENT TRUST I -- FIXED INCOME SERIES / MUNICIPAL BOND SERIES
- --------------------------------------------------------------------
INVESTMENTS / DECEMBER 31, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MOODY'S/S&P PRINCIPAL VALUE
RATING AMOUNT (NOTE 2)
----------- ---------- -----------
<S> <C> <C> <C>
MUNICIPAL BONDS -- 94.6%
ALASKA -- 2.4%
Seward, AK Rev. Bonds (Alaska Sealife Center Proj.), 6.50%,
10/01/01 ................................................... NR, NR $360,000 $ 359,100
-----------
DELAWARE -- 16.1%
Bethany Beach, DE Gen. Oblig. Rev. Bonds,
9.75%, 11/01/07 ............................................ Aaa, AAA 160,000 206,800
Bethany Beach, DE Gen. Oblig. Rev. Bonds,
9.75%, 11/01/08 ............................................ Aaa, AAA 180,000 236,475
Delaware State Economic Dev. Auth. Rev. Bonds
(Student Hsg-Univ Courtyard), 5.38%, 08/01/11 .............. NR, AA 250,000 245,000
Delaware State Economic Dev. Auth. Rev. Bonds
(Delmarva Power & Light), 7.30%, 09/01/15 .................. Aaa, AAA 15,000 15,496
Delaware State Economic Dev. Auth. Rev. Bonds
(Osteopathic Hosp. Assoc.), Ser. 1993A,
6.00%, 01/01/03 ............................................ Aaa, NR 405,000 410,569
Delaware State Gen. Oblig. Rev. Bonds,
Ser. A, 4.30%, 03/01/10 .................................... Aa1, AA+ 500,000 460,000
Delaware State Housing Auth. Multi-family Mtge.
Ref. Rev. Bonds, Ser. 1992C, 7.25%, 01/01/07 ............... A1, A 190,000 198,075
Delaware State Housing Auth. Multi-family Mtge.
Ref. Rev. Bonds, Ser. 1992D, 6.35%, 07/01/03 ............... A1, NR 100,000 102,250
Delaware State Housing Auth. Single Family Mtge.
Rev. Bonds Ser. 1993A-1, 5.15%, 01/01/06 ................... Aaa, AAA 5,000 5,019
Delaware State Housing Auth. Sr. Home Mtge.
Rev. Bonds, Ser. 1991A, 7.00%, 06/01/00 .................... Aa3, NR 20,000 20,042
Delaware State Housing Auth. Sr. Home Mtge.
Rev. Bonds, Ser. 1991B-1, 6.40%, 12/01/02 .................. Aa3, NR 30,000 30,600
Delaware State Solid Waste Auth. Rev. Bonds,
5.80%, 07/01/01 ............................................ A2, A 500,000 509,375
-----------
2,439,701
-----------
HAWAII -- 4.9%
Hawaii State Gen. Oblig. Rev. Bonds,
Ser.1992BW, 6.20%, 03/01/05 ................................ A1, A+ 700,000 736,750
-----------
MARYLAND -- 3.1%
Anne Arundel County, MD G.O. Refunding Water and
Sewer Series 99, 4.20%, 03/15/07 ........................... Aa1, AA+ 500,000 468,125
-----------
MASSACHUSETTS -- 5.4%
Massachusetts Bay Trans. Auth. Ser 98-B, 5.13%, 03/01/12 ...... Aa3, AA- 500,000 483,125
Massachusetts Fed. Highway Grant Ant. Notes
Ser. 98B, 5.13%, 12/15/14 .................................. Aa3, NR 350,000 327,250
-----------
810,375
-----------
MICHIGAN -- 3.0%
Belding, MI Area School Dist. Rev. Bonds, 4.95%, 05/01/14 ..... Aaa, AAA 500,000 460,625
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
24
<PAGE>
WT INVESTMENT TRUST I -- FIXED INCOME SERIES / MUNICIPAL BOND SERIES
- --------------------------------------------------------------------
INVESTMENTS / DECEMBER 31, 1999 (UNAUDITED) -- CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MOODY'S/S&P PRINCIPAL VALUE
RATING AMOUNT (NOTE 2)
------------- ---------- -----------
<S> <C> <C> <C>
MISSISSIPPI -- 2.6%
Medical Center Educ. Bldg. Corp. Rev. Bonds
(Univ. of Mississippi Medical Center Proj.),
Ser. 1993, 5.40%, 12/01/05 ................................. NR, A $400,000 $ 399,500
-----------
NEW JERSEY -- 3.3%
New Jersey Economic Dev. Auth. School Rev. Bonds
(Blair Academy Proj.), Ser. 1995B, 6.00%, 09/01/07 ......... A3, NR 500,000 506,050
-----------
NEW YORK -- 1.6%
Tsasc Inc., NY TFABS-Ser. 1 Plan Prin 2010, 5.88%, 07/15/15 ... Aa1, A 250,000 243,125
-----------
PENNSYLVANIA -- 24.0%
Allentown, PA Gtd. Water Improv.
Rev. Bonds, 5.65%, 07/15/10 ................................ Aaa, AAA 525,000 538,125
Chester County, PA Ind. Dev. Auth. Wastewater Treatment
Rev. Bonds (Orleans Corp. Proj.), 7.00%, 11/01/06 .......... NR, NR 605,000 573,237
Harrisburg, PA Office & Parking Rev. Auth. Bonds
(Capital Assoc. Proj.), Ser. 1998A, 5.50%, 05/01/05 ........ NR, NR 500,000 480,000
New Morgan, PA Muni Auth Subordinated Office Rev
Ser 1999 B, 5.38%, 06/01/03 ................................ NR, NR 210,000 204,750
Penn Delco, PA School Dist., 4.50%, 02/15/12 .................. Aaa, AAA 250,000 223,437
Pennsylvania State Higher Educ. Fac. Auth. Rev. Bonds
(Philadelphia College of Osteopathic Medicine),
5.25%, 12/01/07 ............................................ NR, AAA 150,000 150,937
Pennsylvania State Higher Educ. Fac. Auth. Rev. Bonds,
Ser.1992A, 6.63%, 08/15/09 ................................. Aaa, AAA 120,000 127,500
Philadelphia, PA Hospitals & Higher Educ. Fac. Auth. Rev. Bonds
(Jefferson Health Systems) Ser. 1997A, 5.50%, 05/15/05 ..... A1, AA- 500,000 505,000
Philadelphia, PA Redev. Auth. Home Improv. Loan Rev. Bonds,
Ser. 1986A, 7.38%, 06/01/03 ................................ A1, A+ 5,000 5,050
Westmoreland County, PA Ind. Dev. Auth. Rev. Bonds
(Landfill Gas Recycling- Lanchester Energy Partners),
Ser. 1998B, 6.80%, 01/01/05 ................................ NR, NR 500,000 478,750
York County, PA Ind. Dev. Auth. Personal Care Fac. Rev.
Bonds, 9.50%, 10/01/19 ..................................... NR, NR 320,000 358,800
-----------
3,645,586
-----------
TEXAS -- 15.9%
Austin, TX Gen. Oblig. Rev. Bonds, 4.75%, 09/01/09 ............ Aa2, AA 315,000 303,975
Carrollton, TX Fmrs Brh Indpt. School Dist. Psf, 4.40%,
02/15/10 ................................................... Aaa, AAA 250,000 228,437
Coppell, TX Indpt. School Dist., 0.00%, 08/15/07 .............. NR, AAA 500,000 334,375
Georgetown, TX Utility System Ref. Rev. Bonds,
Ser. 1998A, 4.80%, 08/15/11 ................................ Aaa, AAA 650,000 610,188
Klein, TX Isd Ref., 4.45%, 08/01/11 ........................... Aaa, AAA 275,000 248,531
Texas A&M University Rev. Bonds, 5.90%, 05/15/08 .............. Aa, AA+ 400,000 413,000
University of Texas Ref. Rev. Bonds, Ser. 1992A,
6.25%, 07/01/13 ............................................ Aaa, AAA 275,000 280,844
-----------
2,419,350
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
25
<PAGE>
WT INVESTMENT TRUST I -- FIXED INCOME SERIES / MUNICIPAL BOND SERIES
- --------------------------------------------------------------------
INVESTMENTS / DECEMBER 31, 1999 (UNAUDITED) -- CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MOODY'S/S&P PRINCIPAL VALUE
RATING AMOUNT (NOTE 2)
------------- ---------- -----------
<S> <C> <C> <C>
UTAH -- 3.4%
Salt Lake County, UT Municipal Bldg. Auth. Lease Rev. Bonds,
Ser. 1994A, 5.65%, 10/01/03 ................................ Aaa, AAA $500,000 $ 516,875
-----------
VIRGINIA -- 6.5%
Virginia State Housing Dev. Auth. Commonwealth Mtge. Rev.
Bonds, Ser. 1992C-8, 5.80%, 07/01/04 ....................... Aa1, AA+ 500,000 511,250
Virginia State Public Bldg. Auth. Ref. Rev. Bonds,
Ser. 1996A, 5.00%, 08/01/12 ................................ Aa, AA 500,000 479,375
-----------
990,625
-----------
WASHINGTON -- 2.4%
Clark County, WA Public Utility Dist. No. 1 Generating System
Rev. Bonds, 6.00%, 01/01/06 ................................ Aaa, AAA 350,000 367,938
-----------
TOTAL MUNICIPAL BONDS
(Cost $14,681,541) ...................................................................... 14,363,725
-----------
SHARES
----------
TAX-EXEMPT MUTUAL FUNDS -- 3.8%
Provident Municipal Tax-Exempt Cash Money
Market Fund, 0.000%,
(Cost $574,776) ............................................................. 574,776 574,776
-----------
TOTAL INVESTMENTS (Cost $15,256,316)(DAGGER)-- 98.4% ................................................ 14,938,501
-----------
OTHER ASSETS AND LIABILITIES, NET -- 1.6% ........................................................... 246,675
-----------
TOTAL NET ASSETS -- 100.0% .......................................................................... $15,185,176
===========
<FN>
(DAGGER) The cost for federal income tax purposes. At December 31, 1999, net
unrealized depreciation was $317,815. This consisted of aggregate gross
unrealized appreciation for all securities, in which there was an excess of
market value over tax cost of $62,620, and aggregate gross unrealized
depreciation for all securities, in which there was an excess of tax cost
over market value of $380,435.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
26
<PAGE>
WT INVESTMENT TRUST I -- FIXED INCOME SERIES
- --------------------------------------------
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
December 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
SHORT/
INTERMEDIATE INTERMEDIATE MUNICIPAL
BOND SERIES BOND SERIES BOND SERIES
------------ ------------ --------------
<S> <C> <C> <C>
ASSETS:
Investments in securities, at value* ...... $141,289,218 $86,794,244 $14,938,501
Receivable for beneficial interest sold ... 75,399 5,018 --
Dividends and interest receivable ......... 2,050,764 1,292,312 263,078
Other assets .............................. 30 -- --
------------ ----------- -----------
Total assets .............................. 143,415,411 88,091,574 15,201,579
------------ ----------- -----------
LIABILITIES:
Payable for beneficial interest repurchased 82,733 14,143 7,028
Due to custodian .......................... 27,419 150,349 --
Accrued advisory fee ...................... 42,590 26,026 4,540
Other accrued expenses .................... 23,076 12,758 4,835
------------ ----------- -----------
Total liabilities ......................... 175,818 203,276 16,403
------------ ----------- -----------
NET ASSETS ................................ $143,239,593 $87,888,298 $15,185,176
============ =========== ===========
*Investments at cost ...................... $146,069,978 $89,283,527 $15,256,316
</TABLE>
The accompanying notes are an integral part of the financial statements.
27
<PAGE>
WT INVESTMENT TRUST I -- FIXED INCOME SERIES
- --------------------------------------------
FINANCIAL STATEMENTS -- CONTINUED
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS (Unaudited)
<TABLE>
<CAPTION>
SHORT/
INTERMEDIATE INTERMEDIATE MUNICIPAL
BOND SERIES 1 BOND SERIES 2 BOND SERIES 2
------------- --------------- -------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends .......................................... $ -- $ 6,354 $ --
Interest ........................................... 2,749,753 972,230 136,326
----------- ----------- ---------
Total investment income ......................... 2,749,753 978,584 136,326
----------- ----------- ---------
EXPENSES:
Advisory fees ...................................... 165,801 51,862 8,976
Administration fees ................................ 43,273 14,818 2,565
Accounting fees .................................... 20,195 2,976 1,830
Custodian fees ..................................... 8,457 2,873 2,215
Trustees' fees ..................................... 4,423 341 57
Professional fees .................................. 2,683 -- --
Other .............................................. 2,085 -- --
----------- ----------- ---------
Total expenses before fee waivers ............... 246,917 72,870 15,643
Management fee waived ........................... (48,980) -- --
----------- ----------- ---------
Total expenses, net .......................... 197,937 72,870 15,643
----------- ----------- ---------
Net investment income .............................. 2,551,816 905,714 120,683
----------- ----------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized loss on investment transactions ....... (235,991) (207,489) (21,275)
Net change in unrealized appreciation (depreciation)
of investments .................................. (4,086,255) (2,489,283) (317,815)
----------- ----------- ---------
Net loss on investments ............................ (4,322,246) (2,696,772) (339,090)
----------- ----------- ---------
NET DECREASE IN NET ASSETS RESULTING FROM
OPERATIONS ......................................... $(1,770,430) $(1,791,058) $(218,407)
=========== =========== =========
<FN>
1 For the Six-Month Period ended December 31, 1999.
2 For the Period November 1, 1999 (Commencement of Operations) through
December 31, 1999.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
28
<PAGE>
WT INVESTMENT TRUST I -- FIXED INCOME SERIES
- --------------------------------------------
FINANCIAL STATEMENTS -- CONTINUED
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (Unaudited)
<TABLE>
<CAPTION>
SHORT/
INTERMEDIATE INTERMEDIATE MUNICIPAL
BOND SERIES 1 BOND SERIES 2 BOND SERIES 2
------------- ------------- -------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income .............................. $ 2,551,816 $ 905,714 $ 120,683
Net realized loss on investment transactions ....... (235,991) (207,489) (21,275)
Net change in unrealized appreciation (depreciation)
of investments .................................. (4,086,255) (2,489,283) (317,815)
------------ ----------- -----------
Net decrease in net assets resulting
from operatinos .................................... (1,770,430) (1,791,058) (218,407)
------------ ----------- -----------
Transactions in beneficial interests:
Contributions ...................................... 96,571,935 96,119,762 15,772,019
Withdrawals ........................................ (16,837,318) (6,440,406) (368,436)
------------ ----------- -----------
Net increase in net assets from transactions
in beneficial interests ............................ 79,734,617 89,679,356 15,403,583
------------ ----------- -----------
Total increase in net assets .......................... 77,964,187 87,888,298 15,185,176
NET ASSETS:
Beginning of period ................................ 65,275,406 -- --
------------ ----------- -----------
End of period ...................................... $143,239,593 $87,888,298 $15,185,176
============ =========== ===========
<FN>
1 For the Six-Month Period ended December 31, 1999.
2 For the Period November 1, 1999 (Commencement of Operations) through
December 31, 1999.
</FN>
</TABLE>
29
<PAGE>
WT INVESTMENT TRUST I -- FIXED-INCOME SERIES
- --------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
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 the 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 generally accepted accounting
principles requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
30
<PAGE>
WT INVESTMENT TRUST I -- FIXED-INCOME SERIES
- --------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- CONTINUED
- --------------------------------------------------------------------------------
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 the
Series. For its services, each Series pays WTC a monthly fee at the annual
rate 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' 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 may be amended or rescinded at any
time in the future.
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 December 31, 1999, purchases
and sales of investment securities (excluding short-term investments)
are aggregated as follows:
SHORT/INTERMEDIATE INTERMEDIATE MUNICIPAL
BOND 1 BOND 2 BOND 2
------------------- ------------- -------------
Purchases ............... $17,099,530 $3,941,312 $1,178,360
Sales ................... 25,253,025 7,967,944 1,646,298
Portfolio Turnover Rate:
Period Ended
December 31, 1999 .... 21.03% 4.81% 7.99%
1 For the six-month period ended December 31, 1999.
2 For the period November 1, 1999 (Commencement of Operations) through
December 31, 1999.
31
<PAGE>
TRUSTEES
Robert H. Arnold
Eric Brucker
Robert J. Christian
Louis Klein Jr.
Nicholas A. Giordano
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.
Four Falls Corporate Center
West Conshohocken,PA 19428
--------------------------
ADMINISTRATOR,
TRANSFER AGENT AND
ACCOUNTING AGENT
PFPC Inc.
400 Bellevue Parkway
Wilmington, DE 19809
--------------------
WFIP-Semi-12/99
