-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Btwba/MjiUGQToEP/jHTm3LbJ0Zonb4889HSBeZa5jAblZ+/acTaP4Onm4I6puQl CBIdnbpEWEdiRTRTfa2qew== 0000703499-96-000005.txt : 19960223 0000703499-96-000005.hdr.sgml : 19960223 ACCESSION NUMBER: 0000703499-96-000005 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19951231 FILED AS OF DATE: 19960222 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: WRIGHT MANAGED EQUITY TRUST CENTRAL INDEX KEY: 0000703499 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 046481187 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-03489 FILM NUMBER: 96523931 BUSINESS ADDRESS: STREET 1: 24 FEDERAL ST CITY: BOSTON STATE: MA ZIP: 02110 BUSINESS PHONE: 6174828260 FORMER COMPANY: FORMER CONFORMED NAME: EQUITY FUND FOR BANK TRUST DEPARTMENTS EQBT FUND DATE OF NAME CHANGE: 19880218 N-30D 1 ANNUAL REPORT - ------------------------------------------------------------------------------- Description of art work on front of the report Three thin vertical blue lines on the right side of the page - ------------------------------------------------------------------------------- ANNUAL REPORT DECEMBER 31, 1995 THE WRIGHT MANAGED EQUITY TRUST THE WRIGHT MANAGED INVESTMENT FUNDS THE WRIGHT MANAGED INVESTMENT FUNDS =============================================================================== WRIGHT "TRUE BLUE CHIP" EQUITY INVESTMENT FUNDS INCLUDE THREE DIVERSIFIED PROFESSIONALLY MANAGED VEHICLES INTENDED FOR INVESTMENT PORTFOLIO USE. THEY CAN BE USED SINGLY OR IN COMBINATION TO ACHIEVE VIRTUALLY ANY OBJECTIVE. FURTHER, AS THEY ARE ALL "NO-LOAD" FUNDS (NO COMMISSIONS OR SALES CHARGES), STRATEGIES CAN BE ALTERED WITHOUT INCURRING ANY SALES CHARGES, AS DESIRED TO ADJUST TO CHANGING MARKET CONDITIONS OR CHANGING REQUIREMENTS. APPROVED WRIGHT INVESTMENT LIST Securities selected for each of the three equity portfolios are drawn from investment lists prepared by Wright Investors' Service known as The Approved Wright Investment List (the "AWIL"). Companies on the AWIL are selected by Wright as having the highest investment quality among those equity securities which are considered as "investment grade". The corporations may be large or small, exchange traded or over-the-counter, and may include those not currently paying dividends on their shares. Companies on the AWIL are, in the opinion of Wright, soundly financed and have established records of earnings profitability and equity growth. All have established investment acceptance and active, liquid markets for their publicly owned shares. WRIGHT QUALITY CORE EQUITIES FUND (WQC) seeks to enhance total investment return of price appreciation plus income by providing management of a broadly diversified portfolio of equities of well-established companies meeting strict quality standards. In selecting companies from the AWIL for this portfolio, the Investment Committee of Wright Investors' Service first ranks all AWIL companies by comparative market value. The smaller companies are eliminated from consideration. From the remaining companies Wright's Investment Committee selects, based on quantitative formulae, those companies which are expected to do better over the next one to two years. The quantitative formulae takes into consideration factors such as over/under valuation and compatibility with current market trends. Investments in the portfolio are equally weighted in the selected securities. WRIGHT SELECTED BLUE CHIP EQUITIES FUND (WBC) seeks to enhance total investment return of price appreciation plus income by providing active management of equities of well-established companies meeting strict quality standards. Equities selected are limited to those companies on the AWIL whose current operations reflect defined, quantified characteristics which have been determined to offer comparatively superior total investment returns over the intermediate term. The process selects those companies from the AWIL, regardless of size, based on Wright's evaluation of their outlook as described above. Investments are equally weighted. WRIGHT JUNIOR BLUE CHIP EQUITIES (WJBC). This portfolio seeks to enhance total investment return of price appreciation plus income by providing management of equities of smaller companies still experiencing their rapid growth period. Equity securities selected are limited to those companies on the AWIL which when ranked by stock market capitalization represent the smaller companies on the list. These companies are then ranked by their outlook and those with higher ranking are considered for purchase. Investments are equally weighted. DISCIPLINED APPROACH The disciplines which determine sale include preventing individual holdings from exceeding more than 2 1/2 times their normal value position in this Fund and requiring the sale of the securities of any company which no longer meets the standards of the AWIL. Also, portfolio holdings which fall in the unfavorable category based on the quantitative formulae described above are generally sold. The disciplines which determine purchase provide that new funds, income from securities currently held, and proceeds of sales of securities will be used to increase those positions which at current market are the furthest below their normal target values and to purchase companies which become eligible for the portfolios as described above. TABLE OF CONTENTS =============================================================================== INVESTMENT OBJECTIVES.....................Inside Front Cover LETTER TO SHAREHOLDERS................................... 1 WRIGHT MANAGED EQUITY FUNDS -- Dividend Distributions.................... 4 WRIGHT SELECTED BLUE CHIP EQUITIES FUND (WBC) -- Portfolio of Investments..................... 5 Financial Statements......................... 8 WRIGHT JUNIOR BLUE CHIP EQUITIES FUND (WJBC) -- Portfolio of Investments.....................11 Financial Statements........................ 13 WRIGHT QUALITY CORE EQUITIES FUND (WQC) -- Portfolio of Investments.....................16 Financial Statements........................ 19 REPORT TO SHAREHOLDERS =============================================================================== WRIGHT SELECTED BLUE CHIP EQUITIES FUND (WBC) Pockets of market weakness, notably in the technology sector, developed during the fourth quarter, but for most U.S. stocks the great 1995 bull market continued. The Wright Selected Blue Chip Equities Fund had a total investment return of 4.9% for the quarter, lagging the S&P 500's 6.0% return, but topping the 2.4% return for the Lipper Equity Growth Fund Average. For all of 1995, WBC's total return was 30.3%, compared with 37.4% for the S&P 500, 30.8% for the Lipper Equity Growth Fund Average and 23.3% for Value Line's equal-weighted 1,600-stock Composite. As high-technology stocks faded in the fourth quarter, the WBC's relatively low weighting in this group benefitted its performance. Substantial positions in printing and publishing and apparel stocks also helped, while underweighting in oil and gas stocks, which were strong in the quarter, reduced the Fund's gain. For the full year, the WBC Fund was held back by its below-market weighting in electronics, but benefitted from a relatively large position in financial stocks, one of the best performing groups last year. The stock market has gotten off to a tentative start in the first few weeks of 1996, reflecting the ongoing federal budget impasse and some disappointing earnings, primarily from technology stocks but affecting other industries as well. After the strong stock market gains seen last year, it would not be surprising if a period of profit taking persisted for a while in 1996. But if a budget agreement is reached soon and if interest rates decline further and corporate profits rise modestly in 1996, as Wright expects, the DJIA could reach 5500 this coming year. By dint of their relatively good earnings growth prospects and reasonable valuations - at a time when investor caution is increasing - high-quality stocks have the potential for better-than-market performance during 1996. Earnings growth for the stocks in the Selected Blue Chip Fund is expected to average about 11% annually over the next five years, close to double the rate expected for the S&P 500. The Fund's year-end 1995 price/earnings multiple of 15.2 was 12% lower than the S&P 500's P/E multiple of 17.4. WRIGHT QUALITY CORE EQUITIES FUND (WQC) In the fourth quarter of 1995, the Wright Quality Core Equities Fund had a total investment return of 4.9%, compared with 2.4% for the Lipper Equity Growth Fund Average. This brought the Fund's fll-year return to 29.0%, versus 30.8% for the Lipper fund average. As with the WBC, the WQC's performance in 1995 was reduced somewhat by its relatively low exposure to high-tech stocks, but this factor helped the Fund during the fourth quarter. One of the Fund's larger positions is in drug and hospital supply stocks, an area which was strong last year. In terms of trailing 12-month earnings, the WQC Fund averaged a P/E multiple of 15.9 at year-end 1995, compared with 17.4 for the S&P 500. The Fund's valuation is even more attractive in terms of forecast 1996 earnings, where its P/E of 14 represents a 15% discount to the S&P 500's PE of 16.4. WRIGHT JUNIOR BLUE CHIP EQUITIES FUND (WJBC) In general, small stocks did not perform as well as larger-cap issues during the fourth quarter of 1995 or for the entire year. Reflecting this trend, the Wright Junior Blue Chip Equities Fund, which holds the smaller stocks from the Active Wright Investment List, had a total investment return of 0.2% for the last three months of 1995, in line with the 0.4% reported for the S&P SmallCap Index and the 0.8% return estimated for the Value-Line Composite but well below the S&P 500's 6.0%. For all of 1995, the JBC returned 20.5%, compared with 30.4% for the S&P SmallCap Index, 23.3% for Value Line and 37.4% for the S&P 500. The WJBC Fund started 1996 with an average P/E multiple of 15.7, a 10% discount to the S&P 500's 17.4 multiple; the JBC's price/equity discount versus the S&P 500 was more than 25%. Over the next five years, earnings growth for current WJBC Fund holdings is forecast to average 12% per year, twice the growth expected for the average S&P 500 company. Remember that the performance data cited herein represents past performance which is not predictive of future performance and that the investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Sincerely, Peter M. Donovan President February 1996 WRIGHT MANAGED EQUITY TRUST - EQUITY FUNDS WRIGHT SELECTED BLUE CHIP EQUITIES FUND Growth of $10,000 invested 12/31/85 through 12/31/95 Annual Total Return ----------------------------------------- Lst 1 Yr Lst 5 Yrs Lst 10 Yrs Wright Selected Blue Chip Fund +30.3% +12.8% +11.6% Lipper Growth Funds +30.8% +15.7% +12.4% NYSE +34.9% +16.3% +14.2% Wright U.S. Fiduciary Equity Index +29.1% +20.8% +14.1% The cumulative total return of a U.S. $10,000 investment in the WRIGHT SELECTED BLUE CHIP EQUITIES FUND on 12/31/85 would have grown to $29,933 by December 31, 1995.
The following plotting points are used for comparison in the total investment return mountain chart. Date Wright Selected Lipper Equity NYSE Wright U.S. Fiduciary Blue Chip Fund Growth Funds Index Equity Index ------------------------------------------------------------------------------- 12/31/85 $10,000 $10,000 $10,000 $10,000 12/31/86 $11,418 $11,304 $11,802 $11,601 12/31/87 $11,209 $11,429 $12,150 $11,427 12/31/88 $13,598 $13,032 $14,254 $14,329 12/31/89 $16,939 $16,361 $18,428 $16,810 12/31/90 $16,379 $15,464 $17,724 $14,505 12/31/91 $22,273 $21,030 $23,297 $20,385 12/31/92 $23,323 $22,668 $25,169 $24,733 12/31/93 $23,804 $25,073 $27,945 $28,747 12/31/94 $22,966 $24,534 $27,911 $28,954 12/31/95 $29,933 $32,088 $37,645 $37,385
WRIGHT MANAGED EQUITY TRUST - EQUITY FUNDS WRIGHT JUNIOR BLUE CHIP EQUITIES FUND Growth of $10,000 invested 12/31/85 through 12/31/95 Annual Total Return ----------------------------------------- Lst 1 Yr Lst 5 Yrs Lst 10 Yrs Wright Junior Blue Chip Fund +20.5% +12.3% +8.1% Value Line Stock Index +23.3% +15.1% +8.0% NYSE +34.9% +16.3% +14.2% Wright U.S. Fiduciary Equity Index +29.1% +20.8% +14.1% The cumulative total return of a U.S. $10,000 investment in the WRIGHT JUNIOR BLUE CHIP EQUITIES FUND on 12/31/85 would have grown to $21,698 by December 31, 1995.
The following plotting points are used for comparison in the total investment return mountain chart. Date Wright Junior Value Line NYSE Wright U.S. Fiduciary Blue Chip Fund Stock Index Index Equity Index ---------------------------------------------------------------------------------- 12/31/85 $10,000 $10,000 $10,000 $10,000 12/31/86 $10,562 $10,789 $11,802 $11,601 12/31/87 $10,183 $9,904 $12,150 $11,427 12/31/88 $11,732 $11,798 $14,254 $14,329 12/31/89 $13,564 $13,554 $18,428 $16,810 12/31/90 $12,125 $10,714 $17,724 $14,505 12/31/91 $16,609 $14,168 $23,297 $20,385 12/31/92 $17,154 $15,727 $25,169 $24,733 12/31/93 $18,514 $18,010 $27,945 $28,747 12/31/94 $18,005 $17,544 $27,911 $28,954 12/31/95 $21,698 $21,635 $37,645 $37,385
WRIGHT MANAGED EQUITY TRUST - EQUITY FUNDS WRIGHT QUALITY CORE EQUITIES FUND Growth of $10,000 invested 12/31/85 through 12/31/95 Annual Total Return ------------------------------------------ Lst 1 Yr Lst 5 Yrs Lst 10 Yrs Wright Quality Core Equities Fund +29.0% +14.2% +12.3% Lipper Growth Funds +30.8% +15.7% +12.4% NYSE +34.9% +16.3% +14.2% Wright U.S. Fiduciary Equity Index +29.1% +20.8% +14.1% The cumulative total return of a U.S. $10,000 investment in the WRIGHT QUALITY CORE EQUITIES FUND on 12/31/85 would have grown to $31,935 by December 31, 1995.
The following plotting points are used for comparison in the total investment return mountain chart. Date Wright Quality Lipper Equity NYSE Wright U.S. Fiduciary Equities Fund Growth Funds Index Equity Index -------------------------------------------------------------------------------- 12/31/85 $10,000 $10,000 $10,000 $10,000 12/31/86 $11,690 $11,304 $11,802 $11,601 12/31/87 $11,809 $11,429 $12,150 $11,427 12/31/88 $13,776 $13,032 $14,254 $14,329 12/31/89 $16,947 $16,361 $18,428 $16,810 12/31/90 $16,458 $15,464 $17,724 $14,505 12/31/91 $22,860 $21,030 $23,297 $20,385 12/31/92 $24,693 $22,668 $25,169 $24,733 12/31/93 $24,940 $25,073 $27,945 $28,747 12/31/94 $24,759 $24,534 $27,911 $28,954 12/31/95 $31,935 $32,088 $37,645 $37,385 NOTES: The investment results of Wright U.S. Equity Funds and Lipper's average of 646 Growth Funds are net of all fees and expenses charged to the Funds. No fees or expenses have been deducted from the other averages. The Total Investment Return is the % return of an initial $10,000 investment made at the beginning of the period to the ending redeemable value assuming all dividends and distributions are reinvested. Past performance is not predictive of future performance.
N.A.V. Distri- Distri- 12 Month 5 Year 10 Year Cum. Period Per bution bution Shares Invstmnt Invstmnt Invstmnt Invstmnt Ending Share $ P/S in Shares Owned Value Return Return Return Return (Annualized) (Annualized)(Annualized) =================================================================================================================================== THE EQUITY TRUST -- WRIGHT SELECTED BLUE CHIP EQUITIES FUND (WBC) =================================================================================================================================== 1/4/83 $10.00 100.00 $1,000.00 Dec. 94 13.85 0.42 0.030905 250.65 3,471.54 -3.52% 6.28% 11.32% 10.94% Jan. 95 13.98 250.65 3,504.13 -3.26% 8.21% 10.64% 10.94% Feb. 95 14.71 250.65 3,687.11 2.27% 9.24% 11.00% 11.34% Mar. 95 14.58 0.22 0.015172 254.46 3,709.97 6.84% 8.78% 11.16% 11.31% Apr. 95 14.90 254.46 3,791.39 9.19% 9.75% 11.47% 11.43% May 95 15.34 254.46 3,903.35 12.57% 8.56% 11.24% 11.61% Jun. 95 15.65 0.05 0.003205 255.28 3,995.13 17.18% 8.85% 11.27% 11.73% Jul. 95 16.16 255.27 4,125.19 18.47% 9.87% 11.66% 11.93% Aug. 95 16.31 255.27 4,163.48 15.32% 12.31% 11.80% 11.93% Sep. 95 16.85 0.05 0.002973 256.03 4,314.11 22.37% 14.11% 12.63% 12.16% Oct. 95 16.77 256.03 4,293.63 21.37% 14.31% 12.04% 12.04% Nov. 95 17.42 256.03 4,460.05 30.75% 13.71% 11.82% 12.29% Dec. 95 16.83 0.83 0.050060 268.85 4,524.70 30.34% 12.82% 11.59% 12.32%
- ----------------------------------------------------------------------------------------------------------------------------------- > THE EQUITY TRUST -- WRIGHT JUNIOR BLUE CHIP EQUITIES FUND (WJBC) - ----------------------------------------------------------------- 1/15/85 $10.00 100.00 $1,000.00 Dec. 94 11.00 0.39 0.036184 205.59 2,261.54 -2.75% 5.83% -- 8.54% Jan. 95 10.86 205.59 2,232.75 -5.49% 7.80% 7.69% 8.33% Feb. 95 11.40 205.59 2,343.77 -1.76% 8.52% 7.85% 8.78% Mar. 95 10.54 0.89 0.085482 223.17 2,352.20 2.47% 7.71% 8.16% 8.74% Apr. 95 10.78 223.17 2,405.76 4.71% 8.53% 8.55% 8.91% May 95 10.88 223.17 2,428.08 8.48% 7.39% 8.12% 8.93% Jun. 95 11.06 0.11 0.009701 225.33 2,492.19 12.79% 7.90% 8.17% 9.13% Jul. 95 11.57 225.33 2,607.11 16.43% 9.29% 8.37% 9.52% Aug. 95 11.76 225.33 2,649.93 14.10% 13.12% 8.65% 9.61% Sep. 95 12.04 0.03 0.002071 225.80 2,718.64 18.43% 15.18% 9.45% 9.79% Oct. 95 11.78 225.80 2,659.93 14.48% 15.84% 8.90% 9.49% Nov. 95 12.08 225.80 2,727.67 22.74% 14.70% 8.58% 9.67% Dec. 95 10.85 1.22 0.112442 251.19 2,725.41 20.51% 12.34% 8.05% 9.58%
- ----------------------------------------------------------------------------------------------------------------------------------- THE EQUITY TRUST -- WRIGHT QUALITY CORE EQUITIES FUND (WQC) - ------------------------------------------------------------ 7/22/85 $10.00 100.00 $1,000.00 Dec. 94 11.39 1.10 0.097247 246.63 2,809.14 -0.73% 7.88% -- 11.56% Jan. 95 11.52 246.63 2,841.20 0.56% 9.93% -- 11.58% Feb. 95 12.06 246.63 2,974.38 5.70% 10.77% -- 12.02% Mar. 95 12.15 0.04 0.003314 247.45 3,006.51 11.16% 10.20% -- 12.03% Apr. 95 12.36 247.45 3,058.48 13.18% 10.97% -- 12.12% May 95 12.64 247.45 3,127.76 14.14% 9.56% -- 12.27% Jun. 95 12.90 0.04 0.003113 248.22 3,202.03 18.89% 9.96% -- 12.42% Jul. 95 13.36 248.22 3,316.22 20.33% 11.22% -- 12.71% Aug. 95 13.52 248.22 3,355.93 17.20% 14.05% 12.79% 12.72% Sep. 95 13.88 0.04 0.002872 248.93 3,455.18 23.37% 16.03% 13.52% 12.94% Oct. 95 13.79 248.93 3,574.67 29.93% 15.96% 12.93% 12.75% Nov. 95 14.36 248.93 3,574.67 29.93% 15.04% 12.63% 13.09% Dec. 95 12.65 1.88 0.150641 286.43 3,623.34 28.98% 14.18% 12.31% 13.12% - -----------------------------------------------------------------------------------------------------------------------------------
WRIGHT SELECTED BLUE CHIP EQUITIES FUND (WBC) PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995 =============================================================================== Shares Value - ------------------------------------------------------------------------------- EQUITY INTERESTS -- 98.7% APPAREL -- 2.4% Reebok International Ltd............ 52,800 $ 1,491,600 Russell Corp........................ 74,100 2,056,275 VF Corp............................. 31,330 1,652,657 ----------- $ 5,200,532 ----------- AUTOMOTIVE -- 1.8% Eaton Corp.......................... 29,700 $ 1,592,663 Echlin Inc.......................... 31,000 1,131,500 Modine Manufacturing Co............. 49,500 1,188,000 ----------- $ 3,912,163 ----------- BEVERAGES -- 1.9% Anheuser Busch...................... 34,650 $ 2,317,219 Brown Forman Corp................... 52,300 1,908,950 ----------- $ 4,226,169 ----------- CHEMICALS -- 5.9% Clorox Company...................... 26,940 $ 1,929,577 Great Lakes Chemical Corp........... 29,900 2,152,800 Lubrizol Corp....................... 58,600 1,633,475 Morton International Inc............ 33,000 1,183,875 PPG Industries...................... 42,500 1,944,375 Rohm & Haas Co...................... 30,900 1,989,188 Sherwin Williams Co................. 50,700 2,066,025 ----------- $ 12,899,315 ----------- CONSTRUCTION -- 1.0% Fleetwood Enterprises, Inc.......... 88,900 $ 2,289,175 ----------- DIVERSIFIED -- 7.3% Crane Company....................... 50,900 $ 1,876,938 General Electric Co................. 31,340 2,256,480 Johnson Controls.................... 34,100 2,344,375 Lancaster Colony Corp............... 34,000 1,266,500 National Service Industries......... 65,800 2,130,275 Rockwell International Corp......... 39,910 2,110,241 Standex International Corp.......... 55,730 1,825,157 Teleflex, Incorporated.............. 50,400 2,066,400 ----------- $ 15,876,366 ----------- DRUGS, COSMETICS & HEALTH CARE -- 7.8% Alberto Culver Co. Class A.......... 76,500 $ 2,333,250 Bard C.R............................ 59,000 1,902,750 Becton Dickinson & Co............... 29,900 2,242,500 Bristol-Myers Squibb Co............. 26,764 2,298,358 Johnson & Johnson................... 29,900 2,560,188 Lilly (Eli) & Co.................... 47,800 2,688,750 Merck & Co., Inc.................... 43,400 2,853,550 ----------- $ 16,879,346 ----------- ELECTRICAL -- 0.9% Emerson Electric Co................. 23,750 $ 1,941,563 ----------- ELECTRONICS -- 4.0% Hewlett Packard Inc................. 30,500 $ 2,554,375 Raytheon Co......................... 47,360 2,237,760 Sun Microsystems Inc.*.............. 86,000 3,923,750 ----------- $ 8,715,885 ----------- FINANCIAL -- 17.1% AFLAC Corp.......................... 44,700 $ 1,938,862 American International Group........ 25,000 2,312,500 Bancorp Hawaii Inc.................. 56,475 2,026,041 Commerce Bancshares, Inc............ 67,449 2,579,939 Compass Bancshares.................. 69,500 2,293,500 Edwards (A.G.), Inc................. 83,000 1,981,625 Fifth Third Bancorp................. 32,900 2,409,925 First Colony Corp................... 88,100 2,235,537 First Hawaiian Inc.................. 72,300 2,169,000 First Virginia Banks Inc............ 45,665 1,906,514 Jefferson Pilot Corp................ 48,600 2,259,900 MBIA Inc............................ 30,400 2,280,000 Raymond James Financial Corp........ 93,500 1,975,187 FINANCIAL -- continued Southern National Corp.............. 80,700 2,118,375 Southtrust Corporation.............. 77,075 1,975,047 Star Banc Corp...................... 44,565 2,651,618 SunTrust Banks Inc.................. 31,420 2,152,270 ----------- $ 37,265,840 ----------- FOOD -- 4.2% Dean Foods Company.................. 73,500 $ 2,021,250 Hormel (George A.) & Company........ 74,200 1,827,175 Pioneer Hi-Bred International....... 53,700 2,987,062 Universal Foods Corp................ 58,500 2,347,313 ----------- $ 9,182,800 ----------- MACHINERY & EQUIPMENT -- 3.0% Briggs & Stratton Corp.............. 48,480 $ 2,102,820 Dover Corp.......................... 55,100 2,031,813 Pitney-Bowes Inc.................... 49,600 2,331,200 ----------- $ 6,465,833 ----------- METAL PRODUCTS MANUFACTURERS -- 3.8% CLARCOR Inc......................... 87,950 $ 1,791,980 Kaydon Corp......................... 58,900 1,789,087 Stanley Works....................... 50,000 2,575,000 Watts Industries, Inc. Class A...... 90,500 2,104,125 ----------- $ 8,260,193 ----------- OIL, GAS & COAL -- 1.1% Exxon Corporation................... 29,300 $ 2,347,662 ----------- PAPER -- 1.9% Kimberly-Clark Corp................. 35,300 $ 2,921,075 Sonoco Products Co.................. 46,000 1,207,500 ----------- $ 4,128,575 ----------- PRINTING & PUBLISHING -- 8.2% American Greetings Corp............. 42,000 $ 1,160,250 Banta (George) Corp................. 53,699 2,362,756 Ennis Business Forms................ 144,320 1,767,920 Gannett Co. Inc..................... 37,680 2,312,610 Harland (John H.) Co................ 76,600 1,599,025 Lee Enterprises, Inc................ 102,200 2,350,600 Reynolds & Reynolds Inc............. 73,600 2,861,200 Wallace Computer Services........... 61,600 3,364,900 ----------- $ 17,779,261 ----------- RECREATION -- 2.9% International Dairy Queen, Inc*..... 99,700 $ 2,268,175 Luby's Cafeteria, Inc............... 94,050 2,092,613 Sturm, Ruger & Company, Inc......... 69,600 1,905,300 ----------- $ 6,266,088 ----------- RETAILERS -- 8.5% Casey's General Stores.............. 119,500 $ 2,614,062 Claire's Stores Inc................. 61,000 1,075,125 Consolidated Stores Corp*........... 46,000 1,000,500 Dress Barn Inc*..................... 202,200 1,996,725 Giant Food Inc...................... 76,300 2,403,450 Hannaford Brothers Company.......... 63,100 1,553,838 May Department Stores............... 42,800 1,808,300 Rex Stores Corporation*............. 72,100 1,279,775 Rite Aid Corp....................... 69,800 2,390,650 Ross Stores Inc..................... 128,400 2,455,650 ----------- $ 18,578,075 ----------- UTILITIES -- 10.4% Ameritech Corp...................... 40,140 $ 2,368,260 Central & South West Corp........... 68,200 1,901,075 Century Telephone Enterprises....... 75,000 2,381,250 DQE................................. 77,400 2,380,050 Duke Power Co....................... 41,250 1,954,219 Lincoln Telecom Co.................. 114,020 2,408,672 NIPSCO Industries Inc............... 51,600 1,973,700 Sprint Corp......................... 59,800 2,384,525 TECO Energy, Inc.................... 98,000 2,511,250 Wisconsin Energy Corp............... 74,850 2,292,281 ----------- $ 22,555,282 ----------- MISCELLANEOUS -- 4.6% Dionex Corporation*................. 46,300 $ 2,627,525 Genuine Parts Co.................... 54,050 2,216,050 Leggett & Platt Inc................. 54,900 1,331,325 Marshall Industries*................ 63,865 2,051,663 Stanhome Inc........................ 59,100 1,721,288 ----------- $ 9,947,851 ----------- TOTAL EQUITY INTERESTS - 98.7% (identified cost, $171,824,296) $214,717,974 RESERVE FUNDS -- 1.1% Face Amount American Express Corp., 5.65%, 1/2/96 (at amortized cost.............$2,400,000) 2,400,000 ----------- TOTAL INVESTMENTS -- 99.8% (identified cost, $174,224,296) $217,117,974 OTHER ASSETS, LESS LIABILITIES -- 0.2% 469,970 ----------- NET ASSETS -- 100% $217,587,944 ============ * Non-income-producing security. See notes to financial statements
WRIGHT SELECTED BLUE CHIP EQUITIES FUND =============================================================================== STATEMENT OF ASSETS AND LIABILITIES December 31, 1995 - ------------------------------------------------------------------------------- ASSETS: Investments -- Identified cost........................ $174,224,296 Unrealized appreciation................ 42,893,678 ------------ Total Value (Note 1A)................ $217,117,974 Cash..................................... 69,173 Receivable for Fund shares sold.......... 233,603 Dividends and interest receivable........ 444,852 ------------ Total Assets........................... $217,865,602 ------------ LIABILITIES: Payable for Fund shares reacquired....... $ 260,284 Trustee fees payable..................... 370 Accrued custodian fee.................... 6,800 Accrued expenses and other liabilities... 10,204 ------------ Total Liabilities...................... $ 277,658 ------------ NET ASSETS.................................. $217,587,944 ============= NET ASSETS CONSIST OF: Proceeds from sales of shares (including the market value of securities received in exchange for Fund shares and shares issued to shareholders in payment of distributions declared), less cost of shares reacquired................... $173,374,154 Accumulated undistributed net realized loss on investments (computed on the basis of identified cost)....................... (13,798) Unrealized appreciation of investments (computed on the basis of identified cost)....... 42,893,678 Undistributed net investment income...... 1,333,910 ------------ Net assets applicable to outstanding shares$217,587,944 ============= SHARES OF BENEFICIAL INTEREST OUTSTANDING............................ 12,931,453 ============= NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST................. $16.83 =============
STATEMENT OF OPERATIONS For the Year Ended December 31, 1995 - ------------------------------------------------------------------------------- INVESTMENT INCOME: Income -- Dividends.............................. $ 4,832,004 Interest............................... 280,771 ------------ Total Income......................... $ 5,112,775 ------------ Expenses -- Investment Adviser fee (Note 2)........ $ 1,283,832 Administrator fee (Note 2)............. 263,811 Compensation of Trustees not affiliated with the Investment Adviser or Administrator 2,317 Custodian fee (Note 2)................. 82,028 Transfer and dividend disbursing agent fees 19,584 Shareholder communication expense...... 20,947 Distribution expenses (Note 3)......... 412,705 Audit services......................... 28,500 Legal services......................... 1,421 Printing............................... 2,544 Registration costs..................... 20,598 Interest expense....................... 885 Miscellaneous.......................... 7,400 ------------ Total Expenses....................... $ 2,146,572 ------------ Net Investment Income.............. $ 2,966,203 ------------ REALIZED AND UNREALIZED GAIN ON INVESTMENTS: Net realized gain on investment transactions (identified cost basis)................ $ 10,432,468 Change in unrealized appreciation of investments......................... 40,854,983 ------------ Net realized and unrealized gain on investments......................... $ 51,287,451 ------------ Net increase in net assets from operations.................... $ 54,253,654 ============= See notes to financial statements
WRIGHT SELECTED BLUE CHIP EQUITIES FUND =============================================================================== Year Ended December 31, STATEMENTS OF CHANGES IN NET ASSETS 1995 1994 - -------------------------------------------------------------------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS: From operations -- Net investment income...................................................... $ 2,966,203 $ 2,972,904 Net realized gain on investment transactions............................... 10,432,468 9,148,808 Change in unrealized appreciation of investments........................... 40,854,983 (19,763,621) ------------ ------------ Increase (decrease) in net assets from operations..................... $ 54,253,654 $ (7,641,909) ------------ ------------ Undistributed net investment income (loss) included in price of shares sold and redeemed (Note 1C).................................. $ (87,633) $ 280,883 ------------ ------------ Distributions to shareholders -- From net investment income................................................. $ (2,612,968) $ (2,385,221) From net realized gain on investment transactions.......................... (10,432,468) (4,787,377) In excess of net realized gain on investment transactions.................. (1,367,084) -- ------------ ------------ Total distributions to shareholders................................... $ (14,412,520) $ (7,172,598) ------------ ------------ Net increase (decrease) from Fund share transactions (exclusive of amounts allocated to net investment income) (Note 4)................................ $ (8,181,348) $ 25,068,300 ------------ ------------ Net increase in net assets............................................ $ 31,572,153 $ 10,534,676 NET ASSETS: At beginning of year........................................................... 186,015,791 175,481,115 ------------ ------------ At end of year................................................................. $ 217,587,944 $ 186,015,791 ============= ============= UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED IN NET ASSETS.......................... $ 1,333,910 $ 2,009,226 ============= ============= See notes to financial statements
WRIGHT SELECTED BLUE CHIP EQUITIES FUND =============================================================================== Year Ended December 31, -------------------------------------------------------------- FINANCIAL HIGHLIGHTS 1995 1994 1993 1992 1991 - ---------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of year.......... $ 13.850 $ 14.920 $ 14.790 $ 17.180 $ 13.840 -------- -------- -------- -------- -------- Income (Loss) from Investment Operations: Net investment income.................. $ 0.226 $ 0.233 $ 0.196 $ 0.222 $ 0.267 Net realized and unrealized gain (loss) on investments....................... 3.904 (0.763) 0.104 0.498 4.553 -------- -------- -------- -------- -------- Total income (loss) from investment operations....... $ 4.130 $ (0.530) $ 0.300 $ 0.720 $ 4.820 -------- -------- -------- -------- -------- Less Distributions: From net investment income............. $ (0.200) $ (0.180) $ (0.170) $ (0.200) $ (0.250) From net realized gain on investments.. (0.840) (0.360) -- (2.910) (1.230) In excess of net realized gain on investments....................... (0.110) -- -- -- -- -------- -------- -------- -------- -------- Total distributions................ $ (1.150) $ (0.540) $ (0.170) $ (3.110) $ (1.480) -------- -------- -------- -------- -------- Net asset value, end of year................ $ 16.830 $ 13.850 $ 14.920 $ 14.790 $ 17.180 ========= ========= ========= ========= ========= Total Return(1)............................. 30.34% (3.52%) 2.06% 4.71% 35.98% Ratios/Supplemental Data: Net assets, end of year (000 omitted).. $217,588 $186,016 $ 175,481 $ 152,997 $167,900 Ratio of expenses to average net assets 1.04% 1.03% 1.03% 1.02% 1.08% Ratio of net investment income to average net assets........................... 1.44% 1.57% 1.28% 1.34% 1.67% Portfolio turnover rate................ 44% 72% 28% 77% 72% (1) Total investment return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on the last day of each period reported. Dividends and distributions, if any, are assumed to be invested at the net asset value on the record date. See notes to financial statements
WRIGHT JUNIOR BLUE CHIP EQUITIES FUND (WJBC) PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995 ============================================================================== Shares Value - ------------------------------------------------------------------------------ EQUITY INTERESTS -- 99.5% AUTOMOTIVE -- 1.7% Modine Manufacturing Co............. 18,100 $ 434,400 ----------- CONSTRUCTION -- 1.2% Fleetwood Enterprises, Inc.......... 12,000 $ 309,000 ----------- DIVERSIFIED -- 8.7% Carlisle Corp....................... 6,000 $ 242,250 Crane Company....................... 18,000 663,750 Standex International Corp.......... 20,000 655,000 Teleflex, Inc....................... 17,000 697,000 ----------- $ 2,258,000 ----------- DRUGS, COSMETICS & HEALTH CARE -- 7.9% Alberto Culver Company Class A...... 21,000 $ 640,500 Invacare Corporation................ 26,000 656,500 Nellcor Inc*........................ 13,000 754,000 ----------- $ 2,051,000 ----------- ELECTRICAL -- 1.7% Baldor Electric..................... 22,500 $ 452,813 ----------- ELECTRONICS -- 6.4% Dallas Semiconductor Corp........... 34,000 $ 705,500 Digi International, Inc*............ 8,800 167,200 Logicon Inc......................... 10,000 275,000 Verifone Inc*....................... 18,000 515,250 ----------- $ 1,662,950 ----------- FINANCIAL -- 10.9% First Commercial Corp............... 18,190 $ 600,270 First Hawaiian Inc.................. 15,000 450,000 Raymond James Financial Corp........ 27,000 570,375 Star Banc Corp...................... 12,000 714,000 Southern National Corp.............. 19,000 498,750 ----------- $ 2,833,395 ----------- FOOD -- 3.0% Universal Food's Corporation........ 19,500 $ 782,437 ----------- MACHINERY & EQUIPMENT -- 5.2% Briggs & Stratton Corp.............. 15,000 $ 650,625 Donaldson Co. Inc................... 28,000 703,500 ----------- $ 1,354,125 ----------- METAL PRODUCTS MANUFACTURERS -- 7.5% CLARCOR Inc......................... 25,300 $ 515,487 Kaydon Corp......................... 24,300 738,112 Regal Beloit Corp................... 13,500 293,625 Watts Industries, Inc. Class A...... 17,000 395,250 ----------- $ 1,942,474 ----------- PAPER -- 2.0% Wausau Paper Mills Co............... 18,700 $ 509,575 ----------- PRINTING & PUBLISHING -- 12.2% American Business Products-GA....... 12,000 $ 342,000 Banta (George) Co., Inc............. 12,750 561,000 Ennis Business Forms................ 40,000 490,000 Harland (John H.) Co................ 31,000 647,125 Lee Enterprises, Inc................ 24,000 552,000 Wallace Computer Services........... 10,400 568,100 ----------- $ 3,160,225 ----------- RECREATION -- 6.3% International Dairy Queen, Inc.*.... 33,000 $ 750,750 Luby's Cafeteria, Inc............... 31,000 689,750 Sturm, Ruger & Company, Inc......... 7,500 205,313 ----------- $ 1,645,813 ----------- RETAILERS -- 7.2% Casey's General Stores, Inc......... 26,000 $ 568,750 Dress Barn Inc*..................... 46,000 454,250 Hannaford Brothers Co............... 16,000 394,000 Rex Stores Corporation*............. 13,500 239,625 Ruddick Corp........................ 18,600 213,900 ----------- $ 1,870,525 ----------- TRANSPORTATION -- 2.3% Expeditors International............ 23,000 $ 600,875 ----------- UTILITIES -- 4.6% DQE................................. 10,000 $ 307,500 Lincoln Telecom Co.................. 42,000 887,250 ----------- $ 1,194,750 ----------- MISCELLANEOUS -- 10.7% Crawford & Co....................... 39,000 $ 633,750 Dionex Corp*........................ 9,400 533,450 Lydall Inc*......................... 10,000 227,500 Marshall Industries*................ 23,000 738,875 Stanhome Inc........................ 23,000 669,875 ----------- $ 2,803,450 ----------- TOTAL INVESTMENTS -- 99.5% (identified cost, $21,151,984) $ 25,865,807 OTHER ASSETS, LESS LIABILITIES -- 0.5% 127,651 ----------- NET ASSETS -- 100.0% $ 25,993,458 ============ * Non-income-producing security. See notes to financial statements
WRIGHT JUNIOR BLUE CHIP EQUITIES FUND ============================================================================== STATEMENT OF ASSETS AND LIABILITIES December 31, 1995 - ------------------------------------------------------------------------------ ASSETS: Investments -- Identified cost........................ $ 21,151,984 Unrealized appreciation................ 4,713,823 ------------ Total Value (Note 1A)................ $ 25,865,807 Cash..................................... 7,569 Receivable for investment sold........... 875,931 Dividends receivable..................... 49,619 Receivable for Fund shares sold.......... 5,006 ------------ Total Assets........................... $ 26,803,932 ------------ LIABILITIES: Payable for Fund shares reacquired....... $ 124,046 Loans payable (Note 8)................... 675,000 Trustee fees payable..................... 370 Accrued distribution fee................. 4,338 Accrued custodian fee.................... 2,500 Accrued expenses and other liabilities... 4,220 ------------ Total Liabilities...................... $ 810,474 ------------ NET ASSETS.................................. $ 25,993,458 ============= NET ASSETS CONSIST OF: Proceeds from sales of shares (including the market value of securities received in exchange for Fund shares and shares issued to shareholders in payment of distributions declared), less cost of shares reacquired................... $ 19,120,702 Accumulated undistributed net realized gain on investments (computed on the basis of identified cost)....................... 1,908,092 Unrealized appreciation of investments (computed on the basis of identified cost)....... 4,713,823 Undistributed net investment income...... 250,841 ------------ Net assets applicable to outstanding shares $ 25,993,458 ============= SHARES OF BENEFICIAL INTEREST OUTSTANDING............................ 2,395,166 ============= NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST................. $10.85 =============
STATEMENT OF OPERATIONS For the Year Ended December 31, 1995 - ------------------------------------------------------------------------------- INVESTMENT INCOME: Income -- Dividends............................... $ 619,095 Interest................................ 23,850 ------------ Total Income.......................... $ 642,945 ------------ Expenses -- Investment Adviser fee (Note 2)......... $ 174,577 Administrator fee (Note 2).............. 63,483 Compensation of Trustees not affiliated with the Investment Adviser or Administrator 2,400 Custodian fee (Note 2).................. 37,087 Transfer and dividend disbursing agent fees 6,951 Shareholder communication expense....... 5,198 Distribution expenses (Note 3).......... 63,483 Audit services.......................... 24,900 Legal services.......................... 957 Registration costs...................... 17,099 Printing................................ 1,288 Interest expense........................ 4,766 Miscellaneous........................... 3,108 ------------ Total Expenses........................ $ 405,297 ------------ Deduct -- Reduction of distribution expenses by Principal Underwriter (Note 3)........ $ 35,853 Reduction of custodian fee.............. 7,919 ------------ Total................................. $ 43,772 ------------ Net expenses.......................... $ 361,525 ------------ Net investment income............... $ 281,420 ------------ REALIZED AND UNREALIZED GAIN ON INVESTMENTS: Net realized gain on investment transactions (identified cost basis)................. $ 2,687,430 Change in unrealized appreciation of investments.......................... 2,980,154 ------------ Net realized and unrealized gain on investments.......................... $ 5,667,584 ------------ Net increase in net assets from operations..................... $ 5,949,004 ============= See notes to financial statements
WRIGHT JUNIOR BLUE CHIP EQUITIES FUND =============================================================================== Year Ended December 31, ----------------------------------- STATEMENTS OF CHANGES IN NET ASSETS 1995 1994 - ------------------------------------------------------------------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS: From operations -- Net investment income...................................................... $ 281,420 $ 529,321 Net realized gain on investment transactions............................... 2,687,430 6,599,714 Change in unrealized appreciation of investments........................... 2,980,154 (8,816,947) ------------ ------------ Increase (decrease) in net assets from operations..................... $ 5,949,004 $ (1,687,912) ------------ ------------ Undistributed net investment loss included in price of shares sold and redeemed (Note 1C).................................. $ (78,838) $ (98,655) ------------ ------------ Distributions to shareholders -- From net investment income................................................... $ (266,107) $ (488,244) From net realized gain on investment transactions............................ (2,687,430) (2,117,788) In excess of net realized gain on investment transactions.................... (2,913,944) -- ------------ ------------ Total distributions to shareholders................................... $ (5,867,481) $ (2,606,032) ------------ ------------ Net decrease from Fund share transactions (exclusive of amounts allocated to net investment income) (Note 4)......................... $ (11,133,267) $ (26,708,885) ------------ ------------ Net decrease in net assets............................................ $ (11,130,582) $ (31,101,484) NET ASSETS: At beginning of year........................................................... 37,124,040 68,225,524 ------------ ------------ At end of year................................................................. $ 25,993,458 $ 37,124,040 ============== ============== UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED IN NET ASSETS.......................... $ 250,841 $ 384,483 ============== ============== See notes to financial statements
WRIGHT JUNIOR BLUE CHIP EQUITIES FUND =============================================================================== Year Ended December 31, ------------------------------------------------------------------------ FINANCIAL HIGHLIGHTS 1995 1994 1993 1992 1991 - -------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of year.......... $ 11.000 $ 11.950 $ 11.690 $ 14.720 $ 11.500 -------- -------- -------- -------- -------- Income (Loss) from Investment Operations: Net investment income(1)............... $ 0.120 $ 0.101 $ 0.101 $ 0.045 $ 0.072 Net realized and unrealized gain (loss) on investments....................... 1.977 (0.431) 0.809 0.315 4.118 -------- -------- -------- -------- -------- Total income (loss) from investment operations....... $ 2.097 $ (0.330) $ 0.910 $ 0.360 $ 4.190 -------- -------- -------- -------- -------- Less Distributions: From net investment income............. $ (0.100) $ (0.100) $ (0.060) $ (0.030) $ (0.070) From net realized gain on investments.. (1.030) (0.520) (0.590) (3.360) (0.900) In excess of net realized gain on investments....................... (1.117) -- -- -- -- -------- -------- -------- -------- -------- Total distributions................ $ (2.247) $ (0.620) $ (0.650) $ (3.390) $ (0.970) -------- -------- -------- -------- -------- Net asset value, end of year................ $ 10.850 $ 11.000 $ 11.950 $ 11.690 $ 14.720 ========= ========= ========= ========= ========= Total Return(3)............................. 20.51% (2.75%) 7.93% 3.28% 36.98% Ratios/Supplemental Data: Net assets, end of year (000 omitted).. $ 25,993 $ 37,124 $ 68,226 $ 64,635 $120,911 Ratio of expenses to average net assets 1.17%(2) 1.11% 1.09% 1.07% 1.10% Ratio of net investment income to average net assets........................... 0.89% 0.91% 0.86% 0.31% 0.52% Portfolio turnover rate................ 40% 36% 38% 80% 60% (1)During the year ended December 31, 1995, the Principal Underwriter reduced its fee. Had such action not been undertaken, net investment income per share and the ratios would have been as follows: 1995 Net investment income per share........ $ 0.105 ========= Ratios (As a percentage of average net assets): Expenses........................... 1.28% ========= Net investment income.............. 0.78% ========= (2) Custodian fees were reduced by credits resulting from cash balances the Trust maintained with the custodian (Note 2). The computation of net expenses to average daily net assets reported above is computed without consideration of such credits, in accordance with reporting regulations in effect beginning in 1995. If these credits were considered, the ratio of net expenses to average daily net assets would have been reduced to 1.14%. (3) Total investment return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on the last day of each period reported. Dividends and distributions, if any, are assumed to be invested at the net asset value on the record date. See notes to financial statements
WRIGHT QUALITY CORE EQUITIES FUND (WQC) PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995 =============================================================================== Shares Value - ------------------------------------------------------------------------------- EQUITY INTERESTS -- 99.5% APPAREL -- 3.2% Nautica Enterprises Inc.*........... 9,000 $ 393,750 Nike Inc............................ 3,800 264,575 Reebok International Ltd............ 9,300 262,725 Russell Corp........................ 11,300 313,575 VF Corp............................. 6,225 328,369 ----------- $ 1,562,994 ----------- AUTOMOTIVE -- 1.6% Eaton Corp.......................... 5,900 $ 316,388 Echlin Inc.......................... 6,200 226,300 Modine Manufacturing Co............. 10,000 240,000 ----------- $ 782,688 ----------- BEVERAGES -- 1.4% Anheuser Busch...................... 5,400 $ 361,125 Brown-Forman Corp .................. 9,150 333,975 ----------- $ 695,100 ----------- CHEMICALS -- 6.4% Air Products & Chemicals............ 5,600 $ 295,400 Clorox Corp......................... 4,300 307,987 Cooper Tire & Rubber................ 13,700 337,362 Great Lakes Chemical Corp........... 4,700 338,400 Lubrizol Corp....................... 9,500 264,813 Morton International Inc............ 7,000 251,125 PPG Industries...................... 7,200 329,400 RPM Inc............................. 19,125 315,563 Rohm & Haas Co...................... 5,650 363,719 Sherwin Williams Co................. 8,300 338,225 ----------- $ 3,141,994 ----------- CONSTRUCTION -- 2.0% Clayton Homes....................... 15,135 $ 323,511 Fleetwood Enterprises, Inc.......... 13,000 334,750 Oakwood Homes Corp.................. 8,500 326,187 ----------- $ 984,448 ----------- DIVERSIFIED -- 6.4% Crane Company....................... 9,600 $ 354,000 General Electric Co................. 5,250 378,000 Johnson Controls.................... 4,900 336,875 Lancaster Colony Corp............... 9,932 369,967 Minnesota Mining & Mfg. Co.......... 5,066 335,622 National Service Industries......... 10,900 352,888 Rockwell Int'l. Corp................ 6,650 351,619 Standex International Corp.......... 9,400 307,850 Teleflex Inc........................ 8,000 328,000 ----------- $ 3,114,821 ----------- DRUGS, COSMETICS & HEALTH CARE -- 8.1% Abbott Laboratories................. 8,130 $ 339,427 Alberto Culver Co. Class A.......... 10,600 323,300 Ballard Medical Products............ 13,200 235,950 Bard (C.R.) Inc..................... 12,000 387,000 Becton Dickinson & Co............... 4,750 356,250 Bristol-Myers Squibb Co............. 4,000 343,500 Invacare Corp....................... 12,500 315,625 Johnson & Johnson................... 3,850 329,656 Lilly (Eli) & Company............... 5,200 292,500 Merck & Co.......................... 5,842 384,112 Nellcor, Inc.*...................... 5,700 330,600 Pfizer Inc.......................... 5,600 352,800 ----------- $ 3,990,720 ----------- ELECTRICAL -- 1.3% Baldor Electric..................... 14,400 $ 289,800 Emerson Electric Co................. 4,400 359,700 ----------- $ 649,500 ----------- ELECTRONICS -- 4.5% Dallas Semiconductor Corp........... 15,800 $ 327,850 Digi International, Inc.*........... 12,600 239,400 Hewlett-Packard Inc................. 3,800 318,250 Logicon Inc......................... 12,200 335,500 Raytheon Co......................... 7,400 349,650 Sun Microsystems, Inc.*............. 6,800 310,250 Verifone, Inc.*..................... 11,200 320,600 ----------- $ 2,201,500 ----------- FINANCIAL -- 15.1% AFLAC, Inc.......................... 8,100 $ 351,337 Allied Group........................ 6,400 230,400 American International Group........ 3,700 342,250 Bancorp Hawaii...................... 8,950 321,081 Commerce Bancshares, Inc............ 8,978 343,389 Compass Bancshares.................. 10,300 339,900 Edwards (A.G.), Inc................. 14,500 346,187 Fifth Third Bancorp................. 4,650 340,613 First Colony Corp................... 12,900 327,338 First Commercial Corp............... 11,021 363,693 First Hawaiian Inc.................. 11,900 357,000 First Security CP................... 9,500 365,750 First Virginia Banks Inc............ 7,700 321,475 Jefferson Pilot Corp................ 7,800 362,700 MBIA, Inc........................... 4,350 326,250 Mercantile Bankshares............... 11,700 326,138 Old Kent Financial Corp............. 7,800 320,775 Raymond James Financial Corp........ 15,500 327,438 Southern National Corp.............. 12,900 338,625 Southtrust Corp..................... 14,200 363,875 Star Banc Corp...................... 5,800 345,100 SunTrust Banks Inc.................. 5,350 366,475 ----------- $ 7,427,789 ----------- FOOD -- 5.4% CPC International Inc............... 4,850 $ 332,831 Dean Foods Co....................... 11,300 310,750 H.J. Heinz Co....................... 11,025 365,203 Hershey Foods Corp.................. 5,340 347,100 Hormel (George A.) & Co............. 13,400 329,975 Pioneer Hi-Bred International....... 6,100 339,312 Sara Lee Corp....................... 7,000 223,125 Universal Foods Corp................ 10,300 413,288 ----------- $ 2,661,584 ----------- MACHINERY & EQUIPMENT -- 2.7% Briggs & Stratton Corp.............. 7,600 $ 329,650 Donaldson Co., Inc.................. 14,200 356,775 Dover Corp.......................... 8,400 309,750 Pitney-Bowes Inc.................... 7,400 347,800 ----------- $ 1,343,975 ----------- METAL PRODUCTS MANUFACTURERS -- 4.0% CLARCOR............................. 16,700 $ 340,263 Illinois Tool Works Inc............. 5,300 312,700 Kaydon Corp......................... 9,700 294,637 Regal Beloit Corp................... 15,100 328,425 Stanley Works....................... 6,500 334,750 Watts Industries, Inc. Class A...... 15,600 362,700 ----------- $ 1,973,475 ----------- OIL, GAS, COAL & RELATED SERVICES -- 0.7% Exxon Corp.......................... 4,400 $ 352,550 ----------- PAPER -- 2.8% Bemis Co............................ 13,500 $ 345,937 Kimberly-Clark...................... 4,350 359,963 Sonoco Products Co.................. 12,955 340,069 Wausau Paper Mills Co............... 11,600 316,100 ----------- $ 1,362,069 ----------- PRINTING & PUBLISHING -- 6.7% American Greetings.................. 10,000 $ 276,250 Banta Corp.......................... 7,500 330,000 Donnelley (R.R.) & Sons............. 9,500 374,062 Ennis Business Forms................ 24,000 294,000 Gannett Co. Inc..................... 5,450 334,494 Harland (John H.) Co................ 14,000 292,250 Knight-Ridder Inc................... 5,050 315,625 Lee Enterprises, Inc................ 16,000 368,000 Reynolds & Reynolds, Inc............ 9,500 369,312 Wallace Computer Services........... 6,300 344,138 ----------- $ 3,298,131 ----------- RECREATION -- 4.5% Capital Cities/ABC, Inc............. 2,600 $ 320,775 Carnival Cruise Class A............. 9,100 221,813 International Dairy Queen, Inc.*.... 14,300 325,325 Luby's Cafeteria, Inc............... 16,000 356,000 McDonald's Corp..................... 7,500 338,437 Sturm, Ruger & Company, Inc......... 10,900 298,388 Wendy's International, Inc.......... 16,600 352,750 ----------- $ 2,213,488 ----------- RETAILERS -- 8.3% Albertson's Inc..................... 9,600 $ 315,600 Arbor Drugs Inc..................... 16,800 352,800 Casey's General Stores, Inc......... 13,700 299,687 Claire's Stores Inc................. 15,900 280,237 Consolidated Stores Corp.*.......... 14,000 304,500 Dress Barn, Inc*.................... 35,200 347,600 Hannaford Brothers Co............... 12,800 315,200 May Department Stores............... 7,300 308,425 Nordstrom Inc....................... 7,700 311,850 Rex Stores Corp.*................... 13,200 234,300 Rite Aid Corp....................... 10,500 359,625 Ross Stores Inc..................... 17,300 330,863 Walgreen Co......................... 10,700 319,663 ----------- $ 4,080,350 ----------- TRANSPORTATION -- 1.1% Atlantic Southeast Airlines......... 9,000 $ 193,500 Expeditors International............ 12,900 337,013 ----------- $ 530,513 ----------- UTILITIES -- COMMUNICATIONS -- 6.9% AmeriTech Corp...................... 6,600 $ 389,400 Bell Atlantic Corp.................. 3,500 234,062 Century Telephone Enterprises....... 10,000 317,500 DQE Inc............................. 12,750 392,062 Duke Power Company.................. 7,250 343,468 Lincoln Telecommunications.......... 17,600 371,800 NIPSCO Industries, Inc.............. 8,300 317,475 Sprint Corp......................... 8,300 330,962 TECO Energy, Inc.................... 13,700 351,062 Wisconsin Energy Corp............... 10,550 323,094 ----------- $ 3,370,885 ----------- MISCELLANEOUS -- 6.4% Computer Sciences Corp.*............ 4,500 $ 316,125 Crawford and Co..................... 21,200 344,500 Dionex Corporation*................. 5,700 323,475 Genuine Parts Co.................... 8,750 358,750 Interpublic Group Cos. Inc.......... 8,700 377,362 Kent Electronics Corp.*............. 6,850 399,869 Leggett & Platt Inc................. 15,200 368,600 Marshall Industries*................ 9,800 314,825 Stanhome Inc........................ 11,300 329,113 ----------- $ 3,132,619 ----------- TOTAL EQUITY INTERESTS -- 99.5% (identified cost, $39,625,069) $ 48,871,193 RESERVE FUNDS -- 0.5% Face Amount American Express Corp., 5.65%, 1/2/96 (at amorized cost.................$250,000) 250,000 ----------- TOTAL INVESTMENTS -- 100.0% (identified cost, $39,875,069) $ 49,121,193 OTHER ASSETS, LESS LIABILITIES -- 0.0% 13,081 ----------- NET ASSETS -- 100% $ 49,134,274 ============ * Non-income-producing security. See notes to financial statements
WRIGHT QUALITY CORE EQUITIES FUND STATEMENT OF ASSETS AND LIABILITIES December 31, 1995 =============================================================================== ASSETS: Investments -- Identified cost........................ $ 39,875,069 Unrealized appreciation................ 9,246,124 ------------ Total Value (Note 1A)................ $ 49,121,193 Cash..................................... 3,148 Dividends and interest receivable........ 92,171 ------------ Total Assets........................... $ 49,216,512 ------------ LIABILITIES: Payable for Fund shares reacquired....... $ 61,807 Trustee fees payable..................... 370 Accrued custodian fee.................... 3,000 Accrued distribution fee................. 12,751 Accrued expenses and other liabilities... 4,310 ------------ Total Liabilities...................... $ 82,238 ------------ NET ASSETS.................................. $ 49,134,274 ============= NET ASSETS CONSIST OF: Proceeds from sales of shares (including the market value of securities received in exchange for Fund shares and shares issued to share- holders in payment of distributions declared), less cost of shares reacquired......... $ 40,057,176 Unrealized appreciation of investments (computed on the basis of identified cost) 9,246,124 Distributions in excess of net investment income................................. (169,026) ------------ Net assets applicable to outstanding shares................... $ 49,134,274 ============= SHARES OF BENEFICIAL INTEREST OUTSTANDING............................ 3,884,915 ============= NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST................. $12.65 =============
STATEMENT OF OPERATIONS For the Year Ended December 31, 1995 - ------------------------------------------------------------------------------ INVESTMENT INCOME: Income -- Dividends.............................. $ 1,117,596 Interest............................... 54,250 ------------ Total Income......................... $ 1,171,846 ------------ Expenses -- Investment Adviser fee (Note 2)........ $ 235,233 Administrator fee (Note 2)............. 104,548 Compensation of Trustees not affiliated with the Investment Adviser or Administrator 2,557 Custodian fee (Note 2)................. 52,851 Transfer and dividend disbursing agent fees 8,423 Shareholder communication expense...... 4,668 Distribution expenses (Note 3)......... 104,548 Audit services......................... 29,900 Legal services......................... 1,005 Registration costs..................... 18,342 Printing............................... 2,441 Interest expense....................... 182 Miscellaneous.......................... 4,108 ------------ Total Expenses....................... $ 568,806 ------------ Deduct -- Reduction of distribution expenses by Principal Underwriter (Note 3)........ $ 11,656 Reduction of custodian fee.............. 8,482 ------------ Total................................. $ 20,138 ------------ Net expenses.......................... $ 548,668 ------------ Net investment income.............. $ 623,178 ------------ REALIZED AND UNREALIZED GAIN ON INVESTMENTS: Net realized gain on investment transactions (identified cost basis)................ $ 7,097,632 Change in unrealized appreciation of investments......................... 5,562,948 ------------ Net realized and unrealized gain on investments......................... $ 12,660,580 ------------ Net increase in net assets from operations.................... $ 13,283,758 ============= See notes to financial statements
WRIGHT QUALITY CORE EQUITIES FUND ============================================================================== Year Ended December 31, -------------------------------- STATEMENTS OF CHANGES IN NET ASSETS 1995 1994 - -------------------------------------------------------------------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS: From operations -- Net investment income...................................................... $ 623,178 $ 1,076,807 Net realized gain on investment transactions............................... 7,097,632 9,834,657 Change in unrealized appreciation of investments........................... 5,562,948 (11,332,016) ------------ ------------ Increase (decrease) in net assets from operations..................... $ 13,283,758 $ (420,552) ------------ ------------ Undistributed net investment loss included in price of shares sold and redeemed (Note 1C).................................. $ (61,558) $ (198,337) ------------ ------------ Distributions to shareholders -- From net investment income................................................. $ (614,587) $ (879,992) From net realized gain on investment transactions.......................... (6,258,626) (4,488,457) In excess of net realized gain on investment transactions.................. -- (7,109) ------------ ------------ Total distributions to shareholders................................... $ (6,873,213) $ (5,375,558) ------------ ------------ Net decrease from Fund share transactions (exclusive of amounts allocated to net investment income) (Note 4)......................... $ (8,299,369) $ (31,269,572) ------------ ------------ Net decrease in net assets............................................ $ (1,950,382) $ (37,264,019) NET ASSETS: At beginning of year........................................................... 51,084,656 88,348,675 ------------ ------------ At end of year................................................................. $ 49,134,274 $ 51,084,656 ============= ============= UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME INCLUDED IN NET ASSETS........................................................ $ (169,026) $ 192,766 ============= ============= See notes to financial statements
WRIGHT QUALITY CORE EQUITIES FUND =============================================================================== Year Ended December 31, ------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS 1995 1994 1993 1992 1991 - -------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of year.......... $ 11.390 $ 12.720 $ 13.380 $ 14.730 $ 10.760 -------- -------- -------- -------- -------- Income (Loss) from Investment Operations: Net investment income(1)............... $ 0.153 $ 0.180 $ 0.176 $ 0.179 $ 0.175 Net realized and unrealized gain (loss) on investments....................... 3.107 (0.295) (0.046) 0.951 3.985 -------- -------- -------- -------- -------- Total income (loss) from investment operations....... $ 3.260 $ (0.115) $ 0.130 $ 1.130 $ 4.160 -------- -------- -------- -------- -------- Less Distributions: From net investment income............. $ (0.160) $ (0.160) $ (0.160) $ (0.160) $ (0.190) From net realized gain on investments.. (1.840) (1.055) (0.625) (2.320) -- In excess of net realized gains........ -- -- (0.005) -- -- -------- -------- -------- -------- -------- Total distributions................ $ (2.000) $ (1.215) $ (0.790) $ (2.480) $ (0.190) -------- -------- -------- -------- -------- Net asset value, end of year................ $ 12.650 $ 11.390 $ 12.720 $ 13.380 $ 14.730 ========= ========= ========= ========= ========= Total Return(3)............................. 28.98% (0.70%) 1.00% 8.02% 38.90% Ratios/Supplemental Data: Net assets, end of year (000 omitted).. $ 49,134 $ 51,085 $ 88,349 $ 81,674 $ 80,065 Ratio of expenses to average net assets 1.07%(2) 0.99% 0.97% 1.01% 1.03% Ratio of net investment income to average net assets........................... 1.19% 1.46% 1.37% 1.20% 1.34% Portfolio turnover rate................ 83% 55% 53% 70% 9% (1)For the year ended December 31, 1995, the Principal Underwriter reduced its fee. Had such action not been undertaken, net investment income per share and the ratios would have been as follows: 1995 Net investment income per share........ $ 0.150 ========= Ratios (As a percentage of average net assets): Expenses........................... 1.09% ========= Net investment income.............. 1.17% ========= (2) Custodian fees were reduced by credits resulting from cash balances the Trust maintained with the custodian (Note 2). The computation of net expenses to average daily net assets reported above is computed without consideration of such credits, in accordance with reporting regulations in effect beginning in 1995. If these credits were considered, the ratio of net expenses to average daily net assets would have been reduced to 1.05%. (3) Total investment return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on the last day of each period reported. Dividends and distributions, if any, are assumed to be invested at the net asset value on the record date. See notes to financial statements
THE WRIGHT MANAGED EQUITY TRUST NOTES TO FINANCIAL STATEMENTS =============================================================================== (1) SIGNIFICANT ACCOUNTING POLICIES The Wright Managed Equity Trust (the Trust), issuer of Wright Selected Blue Chip Equities Fund (WBC) series, Wright Junior Blue Chip Equities Fund (WJBC) series, Wright Quality Core Equities Fund (WQC) series and Wright International Blue Chip (WIBC) series, is registered under the Investment Company Act of 1940, as amended, as a diversified, open-end, management investment company. WIBC's financial statements have been prepared separately. The following is a summary of significant accounting policies consistently followed by the Trust in the preparation of its financial statements. The policies are in conformity with generally accepted accounting principles. A. Investment Valuations -- Securities listed on securities exchanges or in the NASDAQ National Market are valued at closing sale prices. Unlisted or listed securities for which closing sale prices are not available are valued at the mean between the latest bid and asked prices. Short-term obligations maturing in sixty days or less are valued at amortized cost, which approximates value. Securities for which market quotations are unavailable are appraised at their fair value as determined in good faith by or at the direction of the Trustees. B. Federal Taxes -- The Trust's policy is to comply with the provisions of the Internal Revenue Code (the Code) available to regulated investment companies and distribute to shareholders each year all of its taxable income, including any net realized gain on investments. Accordingly, no provision for federal income or excise tax is necessary. C. Equalization -- The Funds follow the accounting practice known as equalization by which a portion of the proceeds from sales and costs of reacquisitions of Fund shares, equivalent on a per-share basis to the amount of undistributed net investment income on the date of the transaction, is credited or charged to undistributed net investment income. As a result, undistributed net investment income per share is unaffected by sales or reacquisitions of Fund shares. D. Distributions -- The Trust requires that differences in the recognition or classification of income between the financial statements and tax earnings and profits which result only in temporary overdistributions for financial statement purposes, are classified as distributions in excess of net investment income or accumulated net realized gains.Distributions in excess of tax basis earnings and profits are reported in the financial statements as a return of capital. Permanent differences between book and tax accounting for certain items may result in reclassification of these items. During the period ended December 31, 1995, the following amounts were reclassified due to differences between book and tax accounting created primarily by the unavailability of a tax benefit for operating losses, deferral of certain losses for tax purposes and character reclassifications between net investment income and net realized capital gains. Accumulated Undisributed Undistributed Net Net Realized Gain(Loss) on Investment Paid-in Investment and Foreign Income Capital Currency Transactions (Loss) ------------------------------------------------------------------ WBC $3,173,985 ($2,233,067) ($940,918) WJBC -- $70,117 ($70,117) WQC $1,147,831 ($839,006) ($308,825) ------------------------------------------------------------------
These changes had no effect on the net assets per share. E. Other -- Investment transactions are accounted for on the date the investments are purchased or sold. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Interest income is recorded on the accrual basis. F. Use of Estimates -- The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Actual results could differ from those estimates. (2) INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES The Trust has engaged Wright Investors' Service (Wright) to perform investment management, investment advisory, and other services. For its services, Wright is compensated based upon a percentage of average daily net assets which rate is adjusted as average daily net assets exceed certain levels. For the year ended December 31, 1995, the effective annual rate was 0.62% for WBC, 0.55% for WJBC, and 0.45% for WQC. The Trust also has engaged Eaton Vance Management (Eaton Vance) to act as administrator of the Trust. Under the Administration Agreement, Eaton Vance is responsible for managing the business affairs of the Trust and is compensated based upon a percentage of average daily net assets which rate is reduced as average daily net assets exceed certain levels. For the year ended December 31, 1995, the effective annual rate was 0.13% for WBC, 0.20% for WJBC and 0.20% for WQC. The custodian fee was paid to Investors Bank & Trust Company (IBT) for its services as custodian of the Trust. Prior to November 10, 1995, IBT was an affiliate of Eaton Vance. Pursuant to the custodian agreement, IBT receives a fee reduced by credits which are determined based on the average daily cash balances the Trust maintains with IBT. All significant credit balances are reported as a reduction of expenses in the Statement of Operations. Certain of the Trustees and officers of the Trust are Trustees or officers of the above organizations. Except as to Trustees of the Trust who are not affiliated with Eaton Vance or Wright, Trustees and officers receive remuneration for their services to the Trust out of the fees paid to Eaton Vance and Wright. (3) DISTRIBUTION EXPENSES The Trustees have adopted a Distribution Plan (the Plan) pursuant to Rule 12b-1 of the Investment Company Act of 1940. The Plan provides that each of the Funds will pay Wright Investors' Service Distributors, Inc. (Principal Underwriter), a subsidiary of Wright Investors' Service, an annual rate of 2/10 of 1% of each Fund's average daily net assets for activities primarily intended to result in the sale of each Fund's shares. To enhance the net income of WJBC and WQC, the Principal Underwriter reduced its fee by $35,853 and $11,656, respectively. (4) SHARES OF BENEFICIAL INTEREST The Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional shares of beneficial interest (without par value). Transactions in Fund shares were as follows: Year Ended December 31, 1995 1994 ---------------------------- ---------------------------- Shares Amount Shares Amount - -------------------------------------------------------------------------------------------------------------------------- WRIGHT SELECTED BLUE CHIP EQUITIES FUND -- Sold ............................................... 4,266,308 $ 65,320,088 5,636,130 $ 81,393,593 Issued to shareholders in payment of distributions declared.......................... 700,517 11,141,024 429,746 5,868,021 Reacquired........................................... (5,467,216) (84,642,460) (4,395,865) (62,193,314) --------- ------------ --------- ------------ Net increase (decrease)........................ (500,391) $ (8,181,348) 1,670,011 $ 25,068,300 ========== ============== ========== ============== WRIGHT JUNIOR BLUE CHIP EQUITIES FUND -- Sold ............................................... 225,623 $ 2,466,377 780,096 $ 9,079,764 Issued to shareholders in payment of distributions declared.......................... 444,836 4,715,097 201,483 2,267,954 Reacquired........................................... (1,650,724) (18,314,741) (3,315,481) (38,056,603) --------- ------------ --------- ------------ Net decrease................................... (980,265) $ (11,133,267) (2,333,902) $ (26,708,885) ========== ============== ========== ============== WRIGHT QUALITY CORE EQUITIES FUND -- Sold ............................................... 655,665 $ 8,101,383 1,640,109 $ 20,229,633 Issued to shareholders in payment of distributions declared.......................... 522,768 6,525,442 444,758 5,046,814 Reacquired........................................... (1,778,830) (22,926,194) (4,547,757) (56,546,019) --------- ------------ --------- ------------ Net decrease................................... (600,397) $ (8,299,369) (2,462,890) $ (31,269,572) ========== ============== ========== ==============
(5) INVESTMENT TRANSACTIONS Purchases and sales of investments, other than U.S. Government securities and short-term obligations and redemptions in kind, for the year ended December 31, 1995, were as follows: Wright Selected Blue Chip Wright Junior Blue Chip Wright Quality Core Equities Fund Equities Fund Equities Fund - ------------------------------------------------------------------------------------------------------------------------------- Purchases..................................... $ 88,785,915 $ 12,509,195 $ 42,336,223 ============ ============ ============ Sales......................................... $ 84,611,575 $ 28,188,478 $ 45,429,333 ============ ============ ============ Redemptions in Kind (at Value)................ $ 23,068,420 $-- $ 8,055,128 ============ ============ ============ In addition, the redemption in kind transactions resulted in realized gains of $4,591,935 and $817,863 for WBC and WQC, respectively.
(6) FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES The cost and unrealized appreciation (depreciation) of the investment securities owned at December 31, 1995, as computed on a federal income tax basis, are as follows: Wright Selected Blue Chip Wright Junior Blue Chip Wright Quality Core Equities Fund Equities Fund Equities Fund - ------------------------------------------------------------------------------------------------------------------------------- Aggregate cost................................ $174,224,296 $21,151,984 $39,875,069 ============ ============ ============ Gross unrealized appreciation................. $ 45,860,228 $ 5,383,164 $ 9,896,846 Gross unrealized depreciation................. (2,966,550) (669,341) (650,722) ----------- ----------- ----------- Net unrealized appreciation................... $ 42,893,678 $ 4,713,823 $ 9,246,124 ============ ============ ============ - --------------------------------------------------------------------------------------------------------------------------------
(7) FINANCIAL INSTRUMENTS The Trust may trade in financial instruments with off-balance sheet risk in the normal course of its investing activities to assist in managing exposure to various market risks. These financial instruments include written options, forward foreign currency exchange contracts, and futures contracts and may involve, to a varying degree, elements of risk in excess of the amounts recognized for financial statement purposes. The Funds hold no such instruments at December 31, 1995. (8) LINE OF CREDIT The Trust participates with other funds managed by Wright in a line of credit with a bank which allows the Funds to borrow up to $20,000,000 collectively. The line of credit consists of a $10,000,000 committed facility and a $10,000,000 uncommitted facility. Interest is charged to each fund based on its borrowings, at a rate equal to the bank's base rate. In addition, the funds pay a prorated commitment fee computed at a rate of 1/4 of 1% of $10,000,000 less the value of any borrowing. Wright Junior Blue Chip Equities Fund had loans outstanding of $675,000 at December 31, 1995. INDEPENDENT AUDITORS' REPORT =============================================================================== To the Trustees and Shareholders of The Wright Managed Equity Trust: We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Wright Selected Blue Chip Equities Fund, Wright Junior Blue Chip Equities Fund, and Wright Quality Core Equities Fund (three of the four portfolios which constitute The Wright Managed Equity Trust) as of December 31, 1995, the related statements of operations for the year then ended, the statements of changes in net assets for the years ended December 31, 1995 and 1994, and the financial highlights for each of the years in the five-year period ended December 31, 1995. These financial statements and financial highlights are the responsibility of the Trust's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of the securities owned as of December 31, 1995, by correspondence with the custodian. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such financial statements and financial highlights present fairly, in all material respects, the financial position of each of the aforementioned Portfolios of The Wright Managed Equity Trust as of December 31, 1995, the results of their operations, the changes in their net assets, and their financial highlights for the respective stated periods in conformity with generally accepted accounting principles. DELOITTE & TOUCHE LLP Boston, Massachusetts February 2, 1996 - ------------------------------------------------------------------------------- Description of art work on back cover of this report Three thin vertical blue lines on the right side of page - ------------------------------------------------------------------------------- THE WRIGHT MANAGED EQUITY TRUST ANNUAL REPORTS OFFICERS AND TRUSTEES OF THE FUNDS Peter M. Donovan, President and Trustee H. Day Brigham, Jr., Vice President , Secretary and Trustee A. M. Moody III, Vice President and Trustee Judith R. Corchard, Vice President Winthrop S. Emmet, Trustee Leland Miles, Trustee Lloyd F. Pierce, Trustee George R. Prefer, Trustee Raymond Van Houtte, Trustee James L. O'Connor, Treasurer William J. Austin, Jr., Assistant Treasurer ADMINISTRATOR Eaton Vance Management 24 Federal Street Boston, Massachusetts 02110 INVESTMENT ADVISER Wright Investors' Service 1000 Lafayette Boulevard Bridgeport, Connecticut 06604 PRINCIPAL UNDERWRITER Wright Investors' Service Distributors, Inc. 1000 Lafayette Boulevard Bridgeport, Connecticut 06604 CUSTODIAN Investors Bank & Trust Company 89 South Street Boston, Massachusetts 02111 TRANSFER AND DIVIDEND DISBURSING AGENT First Data Investor Services Group Wright Managed Investment Funds P.O. Box 1559 Boston, Massachusetts 02104 INDEPENDENT AUDITORS Deloitte & Touche LLP 125 Summer Street Boston, Massachusetts 02110 This report is not authorized for use as an offer of sale or a solicitation of an offer to buy shares of a mutual fund unless accompanied or preceded by a Fund's current prospectus. -----END PRIVACY-ENHANCED MESSAGE-----