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<SEC-DOCUMENT>0000703499-96-000005.txt : 19960223
<SEC-HEADER>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
</SEC-HEADER>
<DOCUMENT>
<TYPE>N-30D
<SEQUENCE>1
<DESCRIPTION>ANNUAL REPORT
<TEXT>
- -------------------------------------------------------------------------------
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
<PAGE>
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
<PAGE>
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.
<PAGE>
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
<PAGE>
<TABLE>
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
<S> <C> <C> <C>
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.
</TABLE>
<TABLE>
The following plotting points are used for comparison in the total
investment return mountain chart.
Date Wright Selected Lipper Equity NYSE Wright U.S. Fiduciary
Blue Chip Fund Growth Funds Index Equity Index
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
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
</TABLE>
<TABLE>
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
<S> <C> <C> <C>
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.
</TABLE>
<TABLE>
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
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
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
</TABLE>
<TABLE>
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
<S> <C> <C> <C>
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.
</TABLE>
<TABLE>
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
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
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
<FN>
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.
</FN>
</TABLE>
<PAGE>
<TABLE>
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)
===================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
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%
</TABLE>
<TABLE>
- -----------------------------------------------------------------------------------------------------------------------------------
>
THE EQUITY TRUST -- WRIGHT JUNIOR BLUE CHIP EQUITIES FUND (WJBC)
- -----------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
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%
</TABLE>
<TABLE>
- -----------------------------------------------------------------------------------------------------------------------------------
THE EQUITY TRUST -- WRIGHT QUALITY CORE EQUITIES FUND (WQC)
- ------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
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%
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
WRIGHT SELECTED BLUE CHIP EQUITIES FUND (WBC)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1995
===============================================================================
Shares Value
- -------------------------------------------------------------------------------
EQUITY INTERESTS -- 98.7%
<S> <C> <C>
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
<PAGE>
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
-----------
<PAGE>
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
</TABLE>
<PAGE>
<TABLE>
WRIGHT SELECTED BLUE CHIP EQUITIES FUND
===============================================================================
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1995
- -------------------------------------------------------------------------------
<S> <C>
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
=============
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1995
- -------------------------------------------------------------------------------
<S> <C>
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
</TABLE>
<PAGE>
WRIGHT SELECTED BLUE CHIP EQUITIES FUND
===============================================================================
<TABLE>
Year Ended
December 31,
STATEMENTS OF CHANGES IN NET ASSETS 1995 1994
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
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
</TABLE>
<PAGE>
WRIGHT SELECTED BLUE CHIP EQUITIES FUND
===============================================================================
<TABLE>
Year Ended December 31,
--------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1995 1994 1993 1992 1991
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
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%
<FN>
(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.
</FN>
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT JUNIOR BLUE CHIP EQUITIES FUND (WJBC)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1995
==============================================================================
<TABLE>
Shares Value
- ------------------------------------------------------------------------------
EQUITY INTERESTS -- 99.5%
<S> <C> <C>
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
-----------
<PAGE>
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
</TABLE>
<PAGE>
WRIGHT JUNIOR BLUE CHIP EQUITIES FUND
==============================================================================
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1995
- ------------------------------------------------------------------------------
<S> <C>
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
=============
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1995
- -------------------------------------------------------------------------------
<S> <C>
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
</TABLE>
<PAGE>
WRIGHT JUNIOR BLUE CHIP EQUITIES FUND
===============================================================================
<TABLE>
Year Ended
December 31,
-----------------------------------
STATEMENTS OF CHANGES IN NET ASSETS 1995 1994
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
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
</TABLE>
<PAGE>
WRIGHT JUNIOR BLUE CHIP EQUITIES FUND
===============================================================================
<TABLE>
Year Ended December 31,
------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1995 1994 1993 1992 1991
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
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%
<FN>
(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.
</FN>
See notes to financial statements
</TABLE>
<PAGE>
WRIGHT QUALITY CORE EQUITIES FUND (WQC)
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1995
===============================================================================
<TABLE>
Shares Value
- -------------------------------------------------------------------------------
EQUITY INTERESTS -- 99.5%
<S> <C> <C>
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
-----------
<PAGE>
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
-----------
<PAGE>
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
</TABLE>
<PAGE>
WRIGHT QUALITY CORE EQUITIES FUND
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1995
===============================================================================
<TABLE>
<S> <C>
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
=============
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1995
- ------------------------------------------------------------------------------
<S> <C>
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
</TABLE>
<PAGE>
WRIGHT QUALITY CORE EQUITIES FUND
==============================================================================
<TABLE>
Year Ended
December 31,
--------------------------------
STATEMENTS OF CHANGES IN NET ASSETS 1995 1994
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
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
</TABLE>
<PAGE>
WRIGHT QUALITY CORE EQUITIES FUND
===============================================================================
<TABLE>
Year Ended December 31,
-------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 1995 1994 1993 1992 1991
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
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%
<FN>
(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.
</FN>
See notes to financial statements
</TABLE>
<PAGE>
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.
<TABLE>
Accumulated Undisributed
Undistributed Net Net
Realized Gain(Loss) on Investment
Paid-in Investment and Foreign Income
Capital Currency Transactions (Loss)
------------------------------------------------------------------
<S> <C> <C> <C>
WBC $3,173,985 ($2,233,067) ($940,918)
WJBC -- $70,117 ($70,117)
WQC $1,147,831 ($839,006) ($308,825)
------------------------------------------------------------------
</TABLE>
These changes had no effect on the net assets per share.
<PAGE>
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:
<PAGE>
<TABLE>
Year Ended December 31,
1995 1994
---------------------------- ----------------------------
Shares Amount Shares Amount
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
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)
========== ============== ========== ==============
</TABLE>
(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:
<TABLE>
Wright Selected Blue Chip Wright Junior Blue Chip Wright Quality Core
Equities Fund Equities Fund Equities Fund
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
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.
</TABLE>
<PAGE>
(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:
<TABLE>
Wright Selected Blue Chip Wright Junior Blue Chip Wright Quality Core
Equities Fund Equities Fund Equities Fund
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
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
============ ============ ============
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(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.
<PAGE>
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
<PAGE>
- -------------------------------------------------------------------------------
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.
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