-----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, IBmfj6IztIgwfjF2v2dcjWrexDeDmQ3FAqhF0pZgOkaHceW7pvywEwC0nXJsdeyE BALTZwJHK9R3lfyqnAU85w== 0000703499-97-000001.txt : 19970222 0000703499-97-000001.hdr.sgml : 19970222 ACCESSION NUMBER: 0000703499-97-000001 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19961231 FILED AS OF DATE: 19970220 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: 97540029 BUSINESS ADDRESS: STREET 1: 24 FEDERAL ST CITY: BOSTON STATE: MA ZIP: 02110 BUSINESS PHONE: 6174828260 MAIL ADDRESS: STREET 1: 24 FEDERAL ST STREET 2: 11TH FLOOR CITY: BOSTON STATE: MA ZIP: 02110 FORMER COMPANY: FORMER CONFORMED NAME: EQUITY FUND FOR BANK TRUST DEPARTMENTS EQBT FUND DATE OF NAME CHANGE: 19880218 N-30D 1 ANNUAL REPORT ANNUAL REPORT December 31, 1996 The Wright Managed Equity Trust The Wright Managed Income Trust The Wright Managed Investment Funds THE WRIGHT MANAGED BLUE CHIP INVESTMENT FUNDS The Wright Managed Blue Chip Investment Funds consists of four equity funds from The Wright Managed Equity Trust, a money market fund and four other fixed income funds from The Wright Managed Income Trust. Each of the nine funds have distinct investment objectives and policies. 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), portfolio allocation strategies can be altered as desired to meet changing market conditions or changing requirements without incurring any sales charges. Approved Wright Investment List Securities selected for each of the three U.S. 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. A separate list, known as the International Approved Wright Investment List, is prepared for non-U.S. companies. Four Equity Funds 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. 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 International Blue Chip Equities Fund (WIBC). This is a broadly diversified portfolio of equities of well-established, non-U.S. companies meeting strict quality standards. The portfolio may buy common stocks traded on the securities exchange of the country in which the company is based or it may purchase American Depositary Receipts (ADR's) traded in the United States. The portfolio is denominated in U.S. dollars and investors should understand that fluctuations in foreign exchange rates may impact the value of their investment. A Money Market Fund Wright U.S. Treasury Money Market Fund seeks a high rate of current income but with added safety that comes from limiting its investments to securities of the U.S. Government and its agencies. There may be an added advantage to investors that reside in states and municipalities that do not tax dividend income from mutual funds investing exclusively in U.S. Government securities. Four Fixed-Income Funds Wright U.S. Treasury Near Term Fund (WNTB), like WUSTB, is a diversified portfolio concentrating on bonds and other obligations of the U.S. Government, which are guaranteed as to principal and interest by the full faith and credit of the U.S. Government. The average weighted maturity varies from one to five years. This portfolio is designed to appeal to the investor seeking a high level of income that is normally somewhat less variable and normally somewhat higher than that available from short-term money market instruments and who is also tolerant of modest fluctuation in capital (i.e. compared with somewhat greater fluctuation likely with longer term fixed income securities). Dividends are accrued daily and paid monthly. Wright U.S. Treasury Fund (WUSTB) is invested in U.S. Treasury bills, notes and bonds, which are guaranteed as to principal and interest by the full faith and credit of the U.S. Government, and which are not expected to be taxable by certain state or municipal governments. Maturities are relatively long. Dividends are accrued daily and paid monthly. Wright Total Return Bond Fund (WTRB) is a diversified portfolio of quality government and corporate bonds and other debt securities of varying maturities which, in the Adviser's opinion, will achieve the portfolio objective of best total return, i.e. the best total of ordinary income plus capital appreciation. Accordingly, investment selections and maturities may differ depending on the particular phase of the interest rate cycle. Dividends are accrued daily and paid monthly. Wright Current Income Fund (WCIF) may be invested in a variety of securities and may use a number of strategies to produce a high level of income with reasonable stability of principal. Currently, this portfolio is primarily invested in mortgage Participation Certificates issued by the Government National Mortgage Association (GNMA). GNMA guarantees that the fund will receive timely principal and interest payments. The Fund reinvests all principal payments. Dividends are accrued daily and paid monthly. TABLE OF CONTENTS INVESTMENT OBJECTIVES..........................Inside Front Cover LETTER TO SHAREHOLDERS........................................ 2 WRIGHT MANAGED EQUITY FUNDS -- Dividend Distributions................................... 10 WRIGHT MANAGED INCOME FUNDS -- Dividend Distributions................................... 12 THE WRIGHT MANAGED EQUITY TRUST WRIGHT SELECTED BLUE CHIP EQUITIES FUND (WBC) -- Portfolio of Investments................................. 14 Financial Statements..................................... 17 WRIGHT JUNIOR BLUE CHIP EQUITIES FUND (WJBC) -- Portfolio of Investments................................. 20 Financial Statements..................................... 22 WRIGHT QUALITY CORE EQUITIES FUND (WQC) -- Portfolio of Investments................................. 25 Financial Statements..................................... 28 WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC) -- Portfolio of Investments................................. 31 Financial Statements..................................... 34 Notes to Financial Statements............................ 37 THE WRIGHT MANAGED INCOME TRUST WRIGHT U.S. TREASURY MONEY MARKET FUND (WTMM) -- Portfolio of Investments................................. 42 Financial Statements..................................... 43 WRIGHT U.S. TREASURY NEAR TERM FUND (WNTB) -- Portfolio of Investments................................. 45 Financial Statements..................................... 46 WRIGHT U.S. TREASURY FUND (WUSTB) -- Portfolio of Investments................................. 49 Financial Statements..................................... 50 WRIGHT TOTAL RETURN BOND FUND (WTRB) -- Portfolio of Investments................................. 53 Financial Statements..................................... 54 WRIGHT CURRENT INCOME FUND (WCIF) -- Portfolio of Investments................................... 57 Financial Statements....................................... 61 Notes to Financial Statements.............................. 64 REPORT TO SHAREHOLDERS January 1997 Dear Shareholders: The U.S. stock market surpassed most expectations during 1996. After a 33% advance in 1995, the Dow added another 26% in 1996, a year in which few market analysts expected more than a 10% rise from stocks. The Federal Reserve's repeated decision not to raise interest rates during 1996 helped pull a record $220 billion into stock mutual funds during the year. Foreign stock markets generally followed the U.S. lead during 1996, setting record highs in most markets with the exception of Japan. Outside of the U.S., global bond yields declined during 1996. Despite rising oil prices, inflation pressures were dampened by sluggish economic expansions, high unemployment, global competition and tight fiscal policies. The U.S. dollar was strong during 1996, rising to a 46-month high against the yen in December. For the most part, the economic climate is expected to remain favorable for the financial markets in 1997. In the U.S., real GDP growth on the order of 2 1/2% is forecast, the same rate as has been averaged since the expansion began in 1991; inflation is expected to be at or under 3% for the sixth straight year. Expansions in Europe and Japan may become more convincing in the year ahead, but surplus global capacity will keep inflation pressures under control. The year ahead should see further increases in corporate profits, although the aggregate gains are unlikely to match the double-digit percentage increases of 1992-96. If our forecasts of moderate global growth and low inflation hold up, the Federal Reserve may be content to keep U.S. interest rates at 1995-96 levels. The coming year will probably prove more challenging for global stock markets. With moderate growth and low inflation continuing, the economic backdrop has to be judged favorable for stocks, albeit perhaps not so positive as to sustain the market P/E multiple at 20 times expected 1997 earnings. After six years of pretty steady advances, the U.S. stock market appears to be overdue for a 10% correction. Stronger economic and corporate profit growth abroad may shift global stock market leadership away from New York during 1997. Longer term, the outlook remains favorable for high-quality stocks. Rising productivity and profitability, low inflation, the possibility of greater fiscal discipline out of Washington and other world capitals, and a population increasingly inclined toward saving and investment constitute a positive environment for equity securities into the 21st century. As always, it should be understood that past performance does not guarantee future results and that investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Investing internationally entails additional risks, such as currency fluctuations and potential political instability. The paragraphs below discuss the various economic, political and market factors affecting the investment performance of the Wright Equity and Fixed-Income Funds during 1996 and prospects for the period ahead. Sincerely, Peter M. Donovan President STOCK FUNDS The U.S. stock market extended its streak of positive quarters to eight straight with a healthy rise through the end of 1996. For the first two months of the fourth quarter, stock prices had the support of a nice rally in the bond market. But even in December, with the bond market in retreat, the bullish mood in stocks prevailed. Comments by Fed Chairman Alan Greenspan implying that the U.S. stock market had risen to speculative highs sparked a 4% sell-off early in the month, but the bull market was back on track just as rapidly. Except for the rise in long-term interest rates, market fundamentals remain sound: the economic backdrop of moderate growth with low inflation that investors have found to their liking since 1990 shows no sign of ending. Price/earnings multiples have recently climbed to some of the highest levels in decades. At 18.5 times forecast 1997 earnings, the S&P 500's current pricing represents a premium of about one-third over the market's post-1960 average P/E. These valuations increase the chances of a correction some time during 1997. Nevertheless, the longer-term outlook is judged to be favorable for high-quality stocks. WRIGHT SELECTED BLUE CHIP EQUITIES FUND In 1996, the Selected Blue Chip Equities Fund (WBC) had a 18.6% return, better than the 17.0% return on Value Line's 1600-stock Composite and slightly behind the Lipper stock fund average return of 19.2%. Contributing to the Fund's results were strong performances in financial stocks and in electronics stocks. In general, below-average returns for utilities, for foods and for printing and publishing stocks detracted from 1996 performance. The Fund's relatively small positions in the drug industry and in oil and gas stocks, good groups in 1996, also hampered last year's results. The major stock market averages derived much of their strength during 1996 from an increasingly narrow group of big-cap market favorites. The phenomenon of indexing has resulted in a "crowding in" among Dow and S&P-type stocks, escalating P/E multiples among the select issues to levels reminiscent of the early 1970s. While many of today's "nifty fifty" have risen to significant overvaluations, however, stocks outside this inner circle generally remain reasonably valued. At the beginning of 1997, Selected Blue Chip Equities averaged a P/E multiple of 15.2, well below the S&P 500's P/E of 20.6. This P/E discount for high-quality stocks is expected to make for improved relative performance for the WBC Fund over the next several years. WRIGHT JUNIOR BLUE CHIP EQUITIES FUND The Wright Junior Blue Chip Fund (WJBC) achieved a total return of 17.5% for 1996, compared with 17.0% for Value Line and 16.1% for the Russell 2000. Junior Blue Chip technology holdings generally performed well last year; the Fund also benefited from its absence from the utility sector, which lagged in 1996. At the end of 1996, Junior Blue Chip stock holdings were trading at an average P/E multiple of 14.4, a 30% discount to the S&P 500's 20.6. Given their relatively low valuations, the stocks in the Junior Blue Chip Fund are expected to hold up comparatively well in the more challenging investment environment envisioned for 1997. Longer term, the Junior Blue Chips should benefit from their above-average growth prospects. WRIGHT QUALITY CORE EQUITIES FUND The Quality Core Fund (WQC) had a total investment return of 17.6%, as compared with 17.0% for Value Line and 19.2% for the Lipper average. The Quality Core Fund benefited from its large position in financial stocks and from an underweighting in utilities during 1996; technology holdings had a strong performance. Stocks in the chemicals and construction industries had below-average returns, holding back Fund performance. The stocks in the Quality Core Fund at the end of 1996 are forecast to achieve a 12% average annual rate of earnings growth over the next five years, higher than the 8% rate projected for the S&P 500 Composite. Because of the market's recent focus on big-cap stocks such as those in the S&P 500, the somewhat smaller stocks in the Quality Core are available at a pricing discount to the S&P. At year end 1996, Quality Core stocks were trading at a P/E multiple of 16.2, roughly 20% below the S&P 500's P/E of 20.6. Given this discount and their superior growth prospects, the stocks in the Quality Core are judged to be attractive holdings for long-term investors. WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND The International Blue Chip Fund (WIBC) had a total investment return of 20.7%, easily exceeding the 6.5% return for the FT/S&P World ex U.S. index. The IBC Fund continued to benefit from its relatively large investment in Europe (53% of holdings) and its low exposure to Japan (9%). In total, European markets averaged a better-than-20% return last year, while Tokyo lost around 16% in dollars. For the year 1996, strong markets in the U.K., France, the Netherlands, Hong Kong, Denmark and Sweden contributed to the Fund's superior results. Outside the United States, economic conditions are on a gradually rising trend. In Europe, progress toward monetary union has brought restrictive fiscal programs, lower inflation and reduced government deficits. Central bank policies have been in the direction of easy money, keeping interest rates trending lower. Japan's economic expansion continues to be irregular, which mostly reflects the low level of confidence induced by the weak stock market and shaky banking system. While the U.S. economic expansion is almost seven years old, the economies of Europe are in less mature stages of expansion. From this point, growth comparisons - GDP and corporate earnings - will begin to favor markets outside the U.S. Judging from the continuing slide in Tokyo share prices in the early weeks of 1997, it is probably premature to say that Japan's long bear market is over. Notwithstanding this weakness, it appears that global economic fundamentals are beginning to lean in the direction of foreign markets; investors will probably be well served by a healthy allocation to high-quality foreign stocks. FIXED-INCOME FUNDS Treasury bond yields increased about 75 basis points during 1996. The retreat in bond prices last year was without any basis in terms of inflation. The core inflation rate came in under 3% for 1996 and is unlikely to accelerate any time soon; competition will continue to force businesses to use productivity gains rather than price increases to recover higher costs. Although the Federal Reserve still maintains a bias toward tightening, we believe that 1997 is unlikely to see higher interest rates so long as the economy stays on its present course. Conditions favor a small decline in interest rates in 1997: U.S. economic growth remains moderate, inflation is under control globally, and Congress and the Administration appear inclined to work together to lower the budget deficit. But inflation fears die hard. Wright believes that the 30-year T-bond rate will stay in a range of 6%-7% again in 1997, although by year end it should be closer to 6% than 7%. Reflecting the increased possibility of near-term profit taking in bonds, in November Wright shortened the target durations in bond portfolios. WRIGHT U.S. TREASURY MONEY MARKET FUND For the year 1996, the Wright U.S. Treasury Money Market Fund (WTMM), whose average maturity at year end was 84 days, returned 4.8%, the same as the average money market fund but slightly below the 5.1% return on 90-day Treasury bills. For most of the fourth quarter, the coupon equivalent yield on 90-day Treasury bills was close to the 5.1% rate at which the quarter began. For the quarter, the WTMM Fund had a total investment return of 1.2%, matching the return on the average money market fund. In the year ahead, the return on cash equivalent securities is likely to be in the 5% range as T-bill rates stay close to their 1996 range of 4.9%-5.4%. With the core rate of inflation likely to stay under 3% in 1997, Wright does not expect the Fed to raise interest rates in the near future. This will limit the upper range of short-term yields; fear of inflation, however unfounded, will probably persist, limiting the downside. WRIGHT U.S. TREASURY NEAR TERM FUND The Wright U.S. Treasury Near-Term Fund (WNTB) had a total return of 3.9% for all of 1996, below the 5.1% return for 90-day Treasury bills. The WNTB Fund achieved a 1.7% return in the fourth quarter of 1996, topping the 1.2% return on 90-day Treasury bills and the average money-market fund for the period. At year end 1996, the Fund's average duration was 2.0 years, compared with 1.7 years three months earlier. Yields on two-year Treasury issues declined 22 basis points in the fourth quarter. At the end of 1996, 97% of the Fund's assets were U.S. Treasury securities with the remaining 3% in U.S. government agency securities. At December 31, the WNTB Fund's yield to maturity was 5.9%, the same as three months earlier. WRIGHT U.S. TREASURY FUND The Wright U.S. Treasury Fund (WUSTB) declined 1.2% during 1996, compared with a decline of 0.8% for the Lehman long-term government bond index and a gain of 4.7% for the Lipper fixed-income fund average. Over the last five years, the WUSTB has had an average annual rate of total return of 7.5% compared to 6.7% for the Lipper average. At year end 1996, the Wright U.S. Treasury Fund had an average yield to maturity of 6.4%, down from 6.7% at September 30. The Fund's average duration was 6.0 years, down from 7.0 years. WRIGHT TOTAL RETURN BOND FUND Reflecting the rise in bond yields during the first half of 1996, partly offset by declining yields over the second half, the Wright Total Return Bond Fund (WTRB) had a total investment return of 0.9% in 1996, compared with 2.9% for the Lehman Government/Corporate Index. Since inception 13 1/4 years ago, the Fund has had an annual rate of return of 9.8%, compared with 8.9% for the Lipper fixed-income fund average. In the fourth quarter, the WTRB had a total return of 3.6% compared to 3.1% for the Lehman Brothers Government/Corporate Composite Index and 2.8% for the Lipper average. During the fourth quarter, the duration of this Fund was shortened to 5.9 years from 6.8. At year end, the Fund's yield to maturity was 6.4%, down from 6.9% at the end of the third quarter. WRIGHT CURRENT INCOME FUND For 1996, the Wright Current Income Fund (WCIF) had a total investment return of 4.3%, slightly ahead of the 4.0% earned by the Morningstar government mortgage fund average. With mortgage rates declining in the fourth quarter of 1996, WCIF earned a total investment return of 2.9% for the period, as compared with a 2.9% return on the Morningstar fund average. The Wright Current Income Fund is invested in mortgage-based securities (Ginnie Maes) backed by the U.S. government. Its relatively high current yield of 6.6% at the end of 1996 was more than three percentage points above the inflation rate, making it an attractive choice for income-oriented investors. WRIGHT MANAGED EQUITY TRUST - EQUITY FUNDS WRIGHT SELECTED BLUE CHIP EQUITIES FUND Growth of $10,000 invested 1/1/87* through 12/31/96 Annual Total Return Lst 1 Yr Lst 5 Yrs Lst 10 Yrs Wright Selected Blue Chip Fund +18.6% + 9.8% +12.0% Lipper Growth Funds +19.2% +12.7% +13.0% NYSE +21.9% +14.5% +14.5% Wright U.S. Fiduciary Equity Index +19.1% +16.9% +14.4% The cumulative total return of a U.S. $10,000 investment in the WRIGHT SELECTED BLUE CHIP EQUITIES FUND on 1/1/87 would have grown to $31,085 by December 31, 1996. The following plotting points are used for comparison in the total investment return mountain chart. Date Wright Selected Lipper NYSE Wright U.S. Fiduciary Blue Chip Equities Fund Growth Funds Equity Index 12/31/86 $10,000 $10,000 $10,000 $10,000 12/31/87 $9,817 $10,110 $10,294 $9,850 12/31/88 $11,909 $11,529 $12,077 $12,352 12/31/89 $14,835 $14,474 $15,614 $14,491 12/31/90 $14,345 $13,681 $15,018 $12,504 12/31/91 $19,507 $18,604 $19,739 $17,572 12/31/92 $20,426 $20,054 $21,326 $21,320 12/31/93 $20,848 $22,181 $23,677 $24,781 12/31/94 $20,114 $21,705 $23,649 $24,959 12/31/95 $26,216 $28,387 $31,897 $32,227 12/31/96 $31,085 $33,846 $38,886 $38,387 WRIGHT MANAGED EQUITY TRUST - EQUITY FUNDS WRIGHT JUNIOR BLUE CHIP EQUITIES FUND Growth of $10,000 invested 1/1/87 through 12/31/96 Annual Total Return Lst 1 Yr Lst 5 Yrs Lst 10 Yrs Wright Junior Blue Chip Fund +17.5% + 9.0% + 9.2% Value Line Stock Index +17.0% +12.3% + 8.9% NYSE +21.9% +14.5% +14.5% Wright U.S. Fiduciary Equity Index +19.1% +16.9% +14.4% The cumulative total return of a U.S. $10,000 investment in the WRIGHT JUNIOR BLUE CHIP EQUITIES FUND on 1/1/87 would have grown to $24,146 by December 31, 1996. 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 Stock Index Equity Index Equities Fund 12/31/86 $10,000 $10,000 $10,000 $10,000 12/31/87 $9,642 $9,180 $10,294 $9,850 12/31/88 $11,108 $10,935 $12,077 $12,352 12/31/89 $12,843 $12,563 $15,614 $14,491 12/31/90 $11,480 $9,931 $15,018 $12,504 12/31/91 $15,726 $13,132 $19,739 $17,572 12/31/92 $16,242 $14,577 $21,326 $21,320 12/31/93 $17,529 $16,693 $23,677 $24,781 12/31/94 $17,048 $16,261 $23,649 $24,959 12/31/95 $20,544 $20,053 $31,897 $32,227 12/31/96 $24,146 $23,470 $38,886 $38,387 WRIGHT MANAGED EQUITY TRUST - EQUITY FUNDS WRIGHT QUALITY CORE EQUITIES FUND Growth of $10,000 invested 1/1/87 through 12/31/96 Annual Total Return Lst 1 Yr Lst 5 Yrs Lst 10 Yrs Wright Quality Core Equities Fund +17.6% +10.4% +12.4% Lipper Growth Funds +19.2% +12.7% +13.0% NYSE +21.9% +14.5% +14.5% Wright U.S. Fiduciary Equity Index +19.1% +16.9% +14.4% The cumulative total return of a U.S. $10,000 investment in the WRIGHT QUALITY CORE EQUITIES FUND on 1/1/7 would have grown to $32,135 by December 31, 1996. The following plotting points are used for comparison in the total investment return mountain chart. Date Wright Quality Core Lipper NYSE Wright U.S. Fiduciary Equities Fund Growth Funds Equity Index 12/31/86 $10,000 $10,000 $10,000 $10,000 12/31/87 $10,101 $10,110 $10,294 $9,850 12/31/88 $11,784 $11,529 $12,077 $12,352 12/31/89 $14,497 $14,474 $15,614 $14,491 12/31/90 $14,078 $13,681 $15,018 $12,504 12/31/91 $19,555 $18,604 $19,739 $17,572 12/31/92 $21,123 $20,054 $21,326 $21,320 12/31/93 $21,334 $22,181 $23,677 $24,781 12/31/94 $21,179 $21,705 $23,649 $24,959 12/31/95 $27,317 $28,387 $31,897 $32,227 12/31/96 $32,135 $33,846 $38,886 $38,387 NOTES: The investment results of Wright U.S. Equity Funds and Lipper's average of 775 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. WRIGHT MANAGED EQUITY TRUST - EQUITY FUNDS WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND Growth of $10,000 invested 10/1/89* through 12/31/96 Annual Total Return Lst 1 Yr Lst 5 Yrs Since Incept* Wright Int'l Blue Chip Equities Fund +20.7% +10.7% +9.0% FT World Ex U.S. Index + 6.5% + 7.9% +4.1% Wright Int'l Fiduciary Equity Index + 5.7% + 7.1% +4.8% The cumulative total return of a U.S. $10,000 investment in the WRIGHT INT'L BLUE CHIP EQUITIES FUND on 10/1/89 would have grown to $18,696 by December 31, 1996. The following plotting points are used for comparison in the total investment return mountain chart. Date Wright Int'l Blue Chip FT World Wright Int'l Fiduciary Equities Fund Ex U.S Index Equity Index 09/30/89 $10,000 $10,000 $10,000 12/31/89 $10,312 $10,490 $10,587 12/31/90 $9,599 $8,064 $8,946 12/31/91 $11,251 $9,138 $9,971 12/31/92 $10,807 $7,944 $8,383 12/31/93 $13,858 $10,507 $11,362 12/31/94 $13,631 $11,386 $12,576 12/31/95 $15,486 $12,575 $13,284 12/31/96 $18,696 $13,393 $14,045 NOTES: *: For comparison with other averages, the investment results are shown from the first month-end since the Fund's inception. The investment results of Wright International Blue Chip Equities Fund are net of all fees and expenses charged to the Fund. 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. WRIGHT MANAGED INCOME TRUST - BOND FUNDS WRIGHT U.S. TREASURY NEAR TERM FUND Growth of $10,000 invested 1/1/87 through 12/31/96 Annual Total Return Lst 1 Yr Lst 5 Yrs Lst 10 Yrs Wright U.S. Treasury Near Term Fund +3.9% +5.3% +6.7% Lehman Gov't/Corp Index +2.9% +7.2% +8.4% Morningstar Gov't (1-5 Yrs) Funds +3.2% +4.8% +6.5% The cumulative total return of a U.S. $10,000 investment in the WRIGHT U.S. TREASURY NEAR TERM FUND on 1/1/87 would have grown to $19,042 by December 31, 1996. The following plotting points are used for comparison in the total investment return mountain chart. Date Wright U.S.Treasury Lehman Gov't/Corp Morningstar Gov't Near Term Fund Index (1-5 Yrs) FundS 12/31/86 $10,000 $10,000 $10,000 12/31/87 $10,234 $10,229 $10,292 12/31/88 $10,822 $11,005 $10,974 12/31/89 $12,031 $12,572 $12,160 12/31/90 $13,021 $13,613 $13,205 12/31/91 $14,724 $15,808 $14,937 12/31/92 $15,645 $17,006 $15,767 12/31/93 $16,890 $18,882 $16,731 12/31/94 $16,367 $18,220 $18,255 12/31/96 $19,042 $22,356 $18,843 WRIGHT MANAGED INCOME TRUST - BOND FUNDS WRIGHT U.S. TREASURY FUND Growth of $10,000 invested 1/1/87 through 12/31/96 Annual Total Return Lst 1 Yr Lst 5 Yrs Lst 10 Yrs Wright U.S. Treasury Fund -1.3% +7.5% +8.1% Lehman Gov't/Corp Index +2.9% +7.2% +8.4% Lipper Fixed Income Funds +4.7% +6.7% +7.4% The cumulative total return of a U.S. $10,000 investment in the WRIGHT U.S. TREASURY FUND on 1/1/87 would have grown to $21,778 by December 31, 1996. The following plotting points are used for comparison in the total investment return mountain chart. Date Wright U.S. Lehman Gov't/Corp Lipper Fixed Treasury Fund Index Income Funds 12/31/86 $10,000 $10,000 $10,000 12/31/87 $9,704 $10,229 $10,127 12/31/88 $10,442 $11,005 $10,928 12/31/89 $12,140 $12,572 $11,958 12/31/90 $12,908 $13,613 $12,467 12/31/91 $15,175 $15,808 $14,733 12/31/92 $16,247 $17,006 $15,892 12/31/93 $18,831 $18,882 $17,429 12/31/94 $17,207 $18,220 $16,857 12/31/95 $22,057 $21,726 $19,423 12/31/96 $21,778 $22,356 $20,334 WRIGHT MANAGED INCOME TRUST - BOND FUNDS WRIGHT TOTAL RETURN BOND FUND Growth of $10,000 invested 1/1/87 through 12/31/96 Annual Total Return Lst 1 Yr Lst 5 Yrs Lst 10 Yrs Wright Total Return Bond Fund +0.9% +6.5% +7.0% Lehman Gov't/Corp Index +2.9% +7.2% +8.4% Lipper Fixed Income Funds +4.7% +6.7% +7.4% The cumulative total return of a U.S. $10,000 investment in the WRIGHT TOTAL RETURN BOND FUND on 1/1/87 would have grown to $19,608 by December 31, 1996. The following plotting points are used for comparison in the total investment return mountain chart. Date Wright Total Return Lehman Gov't/Corp Lipper Fixed Bond Fund Index Income Funds 12/31/86 $10,000 $10,000 $10,000 12/31/87 $9,687 $10,229 $10,127 12/31/88 $10,389 $11,005 $10,928 12/31/89 $11,800 $12,572 $11,958 12/31/90 $12,424 $13,613 $12,467 12/31/91 $14,335 $15,808 $14,733 12/31/92 $15,357 $17,006 $15,892 12/31/93 $17,050 $18,882 $17,429 12/31/94 $15,933 $18,220 $16,857 12/31/95 $19,433 $21,726 $19,423 12/31/96 $19,608 $22,356 $20,334 WRIGHT MANAGED INCOME TRUST - BOND FUNDS WRIGHT CURRENT INCOME FUND Growth of $10,000 invested 5/1/87* through 12/31/96 Annual Total Return Lst 1 Yr Lst 5 Yrs Since Incept* Wright Current Income Fund +4.3% +6.2% +8.5% Lehman Gov't/Corp Index +2.9% +7.2% +8.8% Lehman Mtg-Backed index +5.3% +6.7% +9.2% The cumulative total return of a U.S. $10,000 investment in the WRIGHT CURRENT INCOME BOND FUND on 5/1/87 would have grown to $22,082 by December 31, 1996. The following plotting points are used for comparison in the total investment return mountain chart. Date Wright Current Lehman Gov't/Corp Lehman Mtg-Backed Income Fund Index Index 04/30/87 $10,000 $10,000 $10,000 12/31/87 $10,416 $10,356 $10,500 12/31/88 $11,323 $11,141 $11,416 12/31/89 $12,925 $12,728 $13,169 12/31/90 $14,198 $13,782 $14,581 12/31/91 $16,372 $16,004 $16,873 12/31/92 $17,475 $17,217 $18,048 12/31/93 $18,626 $19,117 $19,283 12/31/94 $18,016 $18,446 $18,972 12/31/95 $21,162 $21,996 $22,160 12/31/96 $22,082 $22,634 $23,346 NOTES: *: For comparison with other averages, the investment results are shown from the first month-end since the Fund's inception. The investment results of Wright Fixed Income Funds, Lipper's average of 1645 Fixed Income Funds and Morningstar's average of 114 Government General Funds with average maturities of 1 to 5 years are net of all fees and expenses charged to the Funds. No fees or expenses have been deducted from the Lehman Bond Indices. 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. 95 16.83 0.830 0.050060 268.85 4,524.70 30.34% 12.82% 11.59% 12.32% Jan. 96 17.11 268.85 4,599.98 31.27% 12.30% 11.76% 12.38% Feb. 96 17.38 268.85 4,672.57 26.73% 11.51% 11.11% 12.44% Mar. 96 17.56 0.050 0.002851 269.61 4,734.42 27.61% 10.68% 10.69% 12.46% Apr. 96 17.78 269.61 4,793.73 26.44% 11.24% 10.80% 12.49% May 96 18.16 269.61 4,896.19 25.44% 11.00% 10.55% 12.58% Jun. 96 18.17 0.050 0.002776 270.36 4,912.48 22.97% 11.62% 10.46% 12.53% Jul. 96 17.27 270.36 4,669.16 13.19% 9.72% 10.59% 12.02% Aug. 96 17.82 270.36 4,817.86 15.72% 9.61% 10.33% 12.20% Sep. 96 18.51 0.050 0.002744 271.10 5,018.14 16.32% 10.80% 11.64% 12.46% Oct. 96 18.71 271.10 5,072.36 18.14% 10.65% 11.24% 12.46% Nov. 96 19.79 271.10 5,365.15 20.29% 12.41% 11.70% 12.84% Dec. 96 17.73 2.040 0.116173 302.60 5,365.08 18.57% 9.77% 12.01% 12.76% - ------------------------------------------------------------------------------------------------------------------------------- THE EQUITY TRUST -- WRIGHT JUNIOR BLUE CHIP EQUITIES FUND (WJBC) 1/15/85 $10.00 100.00 $1,000.00 Dec. 95 10.85 1.220 0.112442 251.19 2,725.41 20.51% 12.34% 8.05% 9.58% Jan. 96 10.93 251.19 2,745.51 22.97% 10.88% 8.14% 9.58% Feb. 96 11.18 251.19 2,808.31 19.82% 9.80% 7.59% 9.73% Mar. 96 11.23 0.045 0.004032 252.20 2,832.24 20.41% 8.83% 7.03% 9.74% Apr. 96 11.28 252.20 2,844.85 18.25% 9.35% 7.06% 9.70% May 96 11.55 252.20 2,912.94 19.97% 9.01% 6.80% 9.86% Jun. 96 11.46 0.025 0.002187 252.75 2,896.57 16.23% 9.29% 6.84% 9.73% Jul. 96 10.71 252.75 2,707.00 3.83% 7.66% 7.12% 9.01% Aug. 96 11.21 252.75 2,833.38 6.92% 8.10% 7.36% 9.37% Sep. 96 11.67 0.025 0.002193 253.31 2,956.11 8.74% 9.22% 8.64% 9.70% Oct. 96 11.80 253.31 2,989.04 12.37% 8.92% 8.47% 9.73% Nov. 96 12.30 253.31 3,115.70 14.23% 10.34% 8.79% 10.04% Dec. 96 8.86 3.700 0.427252 361.54 3,203.20 17.53% 8.95% 9.22% 10.22% - --------------------------------------------------------------------------------------------------------------------------------- THE EQUITY TRUST -- WRIGHT QUALITY CORE EQUITIES FUND (WQC) 7/22/85 $10.00 100.00 $1,000.00 Dec. 95 12.65 1.880 0.150641 286.43 3,623.34 28.98% 14.18% 12.31% 13.12% Jan. 96 12.88 286.43 3,689.24 29.85% 13.19% 12.45% 13.20% Feb. 96 13.12 286.43 3,757.99 26.35% 12.03% 11.76% 13.29% Mar. 96 13.26 0.035 0.002642 287.19 3,808.12 26.66% 11.31% 11.28% 13.32% Apr. 96 13.41 287.19 3,851.20 25.92% 11.61% 11.42% 13.33% May 96 13.65 287.19 3,920.12 25.33% 11.00% 11.06% 13.41% Jun. 96 13.55 0.030 0.002232 287.83 3,900.09 21.80% 11.65% 10.84% 13.25% Jul. 96 12.85 287.83 3,698.61 11.53% 9.73% 10.96% 12.60% Aug. 96 13.32 287.83 3,833.89 14.24% 9.90% 10.77% 12.86% Sep. 96 13.90 0.030 0.002193 288.46 4,009.60 16.05% 11.20% 12.23% 13.21% Oct. 96 14.03 288.46 4,047.10 17.90% 11.26% 11.74% 13.20% Nov. 96 14.82 288.46 4,274.99 19.59% 13.11% 12.12% 13.64% Dec. 96 12.45 2.300 0.186840 342.36 4,262.34 17.63% 10.44% 12.38% 13.51% - --------------------------------------------------------------------------------------------------------------------------------- THE EQUITY TRUST -- WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC) 7/22/85 $10.00 100.00 $1,000.00 Dec. 95 14.77 0.100 0.006873 106.21 1,568.69 13.61% 10.04% -- 7.42% Jan. 96 15.12 106.21 1,605.87 20.06% 9.89% -- 7.71% Feb. 96 15.30 106.21 1,624.98 18.32% 8.30% -- 7.81% Mar. 96 15.77 106.21 1,674.90 15.65% 10.00% -- 8.20% Apr. 96 16.12 106.21 1,712.08 15.03% 10.14% -- 8.45% May 96 16.31 106.21 1,732.26 14.12% 10.51% -- 8.53% Jun. 96 16.36 106.21 1,737.57 13.29% 11.57% -- 8.47% Jul. 96 16.03 106.21 1,702.52 7.03% 10.15% -- 8.04% Aug. 96 16.38 106.21 1,739.69 13.66% 10.49% -- 8.28% Sep. 96 16.73 106.21 1,776.86 14.28% 10.26% -- 8.50% Oct. 96 17.00 106.21 1,805.54 16.76% 10.37% -- 8.64% Nov. 96 17.54 106.21 1,862.89 22.05% 11.52% -- 9.01% Dec. 96 16.69 1.110 0.068434 113.48 1,893.98 20.73% 10.69% -- 9.00% - ---------------------------------------------------------------------------------------------------------------------------------
THE INCOME TRUST -- WRIGHT U.S. TREASURY MONEY MARKET FUND (WTMM) - 1996
MONTHLY CUMULATIVE ANNUALIZED INVESTMENT RETURN MONTH NET INCOME RETURN ______________________________________ ENDING PER SHARE PER SHARE (a) 1 Month 3 Month Cumulative - ---------------------------------------------------------------------------------------------------------------------------------- $1,000.00 Jan. 31 $0.004108629 1,004.11 4.84% -- 4.84% Feb. 29 0.003776815 1,007.90 4.75% -- 4.80% Mar. 31 0.003977021 1,011.91 4.68% 4.76% 4.76% Apr. 30 0.003805197 1,015.76 4.63% 4.69% 4.73% May 31 0.003923646 1,019.75 4.62% 4.64% 4.70% Jun. 30 0.003831601 1,023.65 4.66% 4.64% 4.70% Jul. 31 0.004024233 1,027.77 4.75% 4.70% 4.77% Aug. 31 0.004059175 1,031.94 4.79% 4.76% 4.79% Sep. 31 0.003935537 1,036.01 4.80% 4.80% 4.81% Oct. 31 0.004079356 1,040.23 4.82% 4.82% 4.83% Nov. 31 0.003926509 1,044.32 4.79% 4.82% 4.84% Dec. 31 0.004000559 1,048.49 4.72% 4.80% 4.85% ---------- Total $0.047448278 (a): Assumes reinvestment of monthly dividends.
- --------------------------------------------------------------------------------------------------------------------------------- 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 INCOME TRUST -- WRIGHT U.S. TREASURY NEAR TERM FUND (WNTB) 7/25/83 $10.00 100.000 $1,000.00 12/95 10.45 $0.053142 0.005085 265.301 2,772.40 11.93% 7.07% 7.56% 8.55% 1/96 10.48 0.052798 0.005038 266.638 2,794.36 11.34% 7.05% 7.59% 8.55% 2/96 10.37 0.050144 0.004835 267.927 2,778.40 8.98% 6.77% 7.20% 8.45% 3/96 10.30 0.052477 0.005095 269.292 2,773.71 8.24% 6.64% 6.90% 8.38% 4/96 10.24 0.050922 0.004973 270.631 2,771.27 7.08% 6.44% 6.81% 8.31% 5/96 10.21 0.051530 0.005047 271.997 2,777.09 4.69% 6.37% 7.00% 8.27% 6/96 10.22 0.049114 0.004806 273.304 2,793.17 4.67% 6.48% 6.80% 8.27% 7/96 10.21 0.050606 0.004957 274.659 2,804.27 5.05% 6.37% 6.75% 8.24% 8/96 10.18 0.051114 0.005021 276.038 2,810.07 4.53% 6.01% 6.52% 8.20% 9/96 10.22 0.049124 0.004807 277.365 2,834.67 4.91% 5.86% 6.75% 8.22% 10/96 10.28 0.050141 0.004878 278.718 2,865.22 5.09% 5.87% 6.72% 8.26% 11/96 10.31 0.048871 0.004740 280.039 2,887.20 4.87% 5.79% 6.69% 8.26% 12/96 10.24 0.050356 0.004918 281.416 2,881.70 3.91% 5.28% 6.65% 8.19% --------- Total $0.604 - -------------------------------------------------------------------------------------------------------------------------------- THE INCOME TRUST -- WRIGHT U.S. TREASURY FUND (WUSTB) 7/25/83 $10.00 100.000 $1,000.00 12/95 14.71 $0.067219 0.004566 263.195 3,871.60 28.18% 11.31% 10.21% 11.51% 1/96 14.63 0.073060 0.004994 264.509 3,869.77 24.99% 11.07% 10.17% 11.41% 2/96 13.91 0.065579 0.004715 265.756 3,696.67 16.16% 9.98% 8.88% 10.93% 3/96 13.65 0.064552 0.004729 267.013 3,644.73 13.84% 9.59% 8.11% 10.73% 4/96 13.43 0.056895 0.004236 268.144 3,601.18 10.64% 9.07% 7.98% 10.56% 5/96 13.31 0.061404 0.004613 269.381 3,585.47 2.57% 8.98% 8.34% 10.45% 6/96 13.45 0.060585 0.004507 270.596 3,636.80 2.89% 9.44% 8.02% 10.50% 7/96 13.39 0.063165 0.004717 271.872 3,640.37 4.62% 9.16% 8.03% 10.43% 8/96 13.27 0.062508 0.004710 273.153 3,624.74 2.18% 8.36% 7.58% 10.33% 9/96 13.46 0.061306 0.004555 274.397 3,693.38 2.39% 8.12% 8.13% 10.42% 10/96 13.77 0.063993 0.004647 275.672 3,796.00 2.55% 8.64% 8.19% 10.57% 11/96 14.03 0.061898 0.004412 276.888 3,884.74 2.68% 9.03% 8.26% 10.70% 12/96 13.58 0.234859 0.017294 281.677 3,825.17 -1.23% 7.49% 8.09% 10.50% --------- Total $0.926 - ---------------------------------------------------------------------------------------------------------------------------------- THE INCOME TRUST -- WRIGHT TOTAL RETURN BOND FUND (WTRB) 7/25/83 $10.00 100.000 $1,000.00 12/95 13.12 $0.064282 0.004900 264.767 3,473.75 21.97% 9.36% 8.88% 10.53% 1/96 13.11 0.061674 0.004704 266.013 3,487.43 20.11% 9.22% 8.96% 10.49% 2/96 12.61 0.059875 0.004748 267.276 3,370.35 13.13% 8.37% 7.73% 10.12% 3/96 12.39 0.061510 0.004964 268.603 3,327.99 10.83% 8.00% 7.00% 9.94% 4/96 12.20 0.058748 0.004815 269.896 3,292.74 8.08% 7.55% 6.87% 9.78% 5/96 12.08 0.058217 0.004819 271.197 3,276.06 2.13% 7.32% 7.23% 9.67% 6/96 12.21 0.056209 0.004604 272.446 3,326.56 2.87% 7.73% 6.92% 9.74% 7/96 12.15 0.058679 0.004830 273.761 3,326.20 3.75% 7.46% 6.95% 9.67% 8/96 12.06 0.059898 0.004967 275.121 3,317.96 2.07% 6.90% 6.52% 9.58% 9/96 12.24 0.059271 0.004842 276.453 3,383.79 2.92% 6.84% 7.07% 9.69% 10/96 12.51 0.060335 0.004823 277.787 3,475.11 3.94% 7.24% 7.14% 9.84% 11/96 12.74 0.058641 0.004603 279.065 3,555.29 4.20% 7.48% 7.17% 9.97% 12/96 12.50 0.059626 0.004770 280.396 3,504.95 0.87% 6.46% 6.97% 9.78% --------- Total $0.709 - ---------------------------------------------------------------------------------------------------------------------------------- THE INCOME TRUST -- WRIGHT CURRENT INCOME FUND (WCIF) 4/14/87 $10.00 100.000 $1,000.00 12/95 10.67 $0.056552 0.005300 198.130 2,114.04 17.46% 8.31% -- 8.97% 1/96 10.68 0.056265 0.005268 199.173 2,127.17 15.58% 8.15% -- 8.96% 2/96 10.49 0.056629 0.005398 200.249 2,100.61 11.10% 7.73% -- 8.72% 3/96 10.39 0.056195 0.005409 201.332 2,091.84 10.22% 7.49% -- 8.58% 4/96 10.30 0.056334 0.005469 202.433 2,085.06 8.27% 7.26% -- 8.46% 5/96 10.18 0.055144 0.005417 203.529 2,071.93 3.93% 6.99% -- 8.31% 6/96 10.26 0.059011 0.005752 204.700 2,100.22 4.78% 7.29% -- 8.39% 7/96 10.25 0.055297 0.005395 205.804 2,109.49 5.28% 7.06% -- 8.36% 8/96 10.18 0.056205 0.005521 206.941 2,106.66 3.96% 6.65% -- 8.27% 9/96 10.30 0.056981 0.005532 208.085 2,143.28 4.79% 6.64% -- 8.39% 10/96 10.46 0.056973 0.005447 209.219 2,188.43 6.22% 6.77% -- 8.55% 11/96 10.56 0.057039 0.005401 210.349 2,221.28 6.43% 7.00% -- 8.64% 12/96 10.43 0.057090 0.005474 211.500 2,205.95 4.31% 6.17% -- 8.48% --------- Total $0.675
WRIGHT SELECTED BLUE CHIP EQUITIES FUND (WBC) PORTFOLIO OF INVESTMENTS December 31, 1996 =============================================================================== Shares Value - ------------------------------------------------------------------------------- Equity Interests -- 97.7% APPAREL -- 1.1% VF Corp............................. 34,830 $ 2,351,025 ----------- AUTOMOTIVE -- 3.3% Eaton Corp.......................... 31,500 $ 2,197,124 Echlin Inc.......................... 57,500 1,818,438 Johnson Controls.................... 34,100 2,826,038 ----------- $ 6,841,600 ----------- BEVERAGES -- 1.0% Anheuser Busch...................... 51,500 $ 2,060,000 ----------- CHEMICALS -- 6.7% Goodyear Tire & Rubber.............. 50,000 $ 2,568,750 Great Lakes Chemical Corp........... 29,900 1,397,824 Lubrizol Corp....................... 79,600 2,467,600 Morton International Inc............ 63,000 2,567,250 PPG Industries...................... 42,100 2,362,863 Rohm & Haas Co...................... 30,900 2,522,213 ----------- $ 13,886,500 ----------- CONSTRUCTION -- 5.7% Caterpillar Tractor, Inc............ 18,500 $ 1,392,125 Fleetwood Enterprises, Inc.......... 88,200 2,425,500 Medusa Corporation.................. 65,000 2,234,375 Oakwood Homes Corp*................. 76,600 1,752,225 Toll Brothers....................... 100,000 1,950,000 Vulcan Materials Co................. 35,000 2,130,625 ----------- $ 11,884,850 ----------- DIVERSIFIED -- 5.1% Crane Company....................... 83,250 $ 2,414,250 Lancaster Colony Corp............... 62,000 2,852,000 National Service Industries......... 65,800 2,459,275 Teleflex, Incorporated.............. 55,900 2,913,788 ----------- $ 10,639,313 ----------- DRUGS, COSMETICS & HEALTH CARE -- 2.2% Alberto Culver Co. Class A.......... 57,700 $ 2,380,125 Bristol-Myers Squibb Co............. 20,664 2,247,210 ----------- $ 4,627,335 ----------- ELECTRICAL -- 0.9% Juno Lighting Co.................... 110,000 $ 1,760,000 ----------- ELECTRONICS -- 9.5% Compaq Computer*.................... 29,300 $ 2,175,525 Dallas Semiconductor Corp........... 85,000 1,955,000 EMC Corp./Mass...................... 65,000 2,153,125 Harman Int'l. Industries............ 44,000 2,447,500 National Computer System Inc........ 95,000 2,422,500 Raytheon Co......................... 46,960 2,259,950 Seagate Technology, Inc............. 69,400 2,741,300 Sun Microsystems Inc................ 80,600 2,070,413 Varian Associates Inc............... 29,000 1,475,374 ----------- $ 19,700,687 ----------- FINANCIAL -- 14.9% AFLAC Corp.......................... 52,250 $ 2,233,688 American International Group........ 19,000 2,056,750 Bancorp Hawaii Inc.................. 55,975 2,350,950 Commerce Bancshares, Inc............ 52,421 2,424,471 Compass Bancshares.................. 69,500 2,762,625 Edwards (A.G.), Inc................. 82,300 2,767,338 First Hawaiian Inc.................. 71,700 2,509,500 First Virginia Banks Inc............ 44,865 2,147,912 MBIA Inc............................ 22,000 2,227,500 Raymond James Financial Corp........ 76,800 2,313,600 Southern National Corp.............. 59,300 2,149,625 Southtrust Corporation.............. 76,475 2,667,066 Star Banc Corp...................... 25,265 2,321,220 ----------- $ 30,932,245 ----------- FOOD -- 1.2% Universal Foods Corp................ 72,000 $ 2,538,000 ----------- MACHINERY & EQUIPMENT -- 4.2% Briggs & Stratton Corp.............. 52,080 $ 2,423,520 Dover Corp.......................... 43,300 2,175,825 Ingersoll Rand Co................... 50,000 2,225,000 Pitney-Bowes Inc.................... 37,000 2,016,500 ----------- $ 8,840,845 ----------- METAL PRODUCERS -- 0.9% Carpenter Technology................ 50,000 $ 1,831,250 ----------- METAL PRODUCTS MANUFACTURERS -- 4.1% Harsco Corp......................... 26,500 $ 1,815,250 Snap-On Inc......................... 72,900 2,597,063 Trimas Corp. Common Stock........... 75,000 1,790,625 Trinity Industries.................. 60,000 2,250,000 ----------- $ 8,452,938 ----------- OIL, GAS & COAL -- 1.4% Exxon Corporation................... 29,300 $ 2,871,400 ----------- PAPER -- 1.0% Sonoco Products Co.................. 81,000 $ 2,095,875 ----------- PRINTING & PUBLISHING -- 5.3% American Greetings Corp............. 78,000 $ 2,213,250 Banta (George) Corp................. 85,049 1,945,484 Gannett Co. Inc..................... 27,780 2,080,028 Lee Enterprises, Inc................ 102,200 2,376,150 Standard Register................... 75,000 2,437,500 ----------- $ 11,052,412 ----------- RECREATION -- 4.0% Kingworld Productions Inc........... 58,000 $ 2,138,750 Luby's Cafeteria, Inc............... 102,550 2,038,181 Ryan's Family Steak Houses*......... 300,000 2,062,500 Sturm, Ruger & Company, Inc......... 117,200 2,270,750 ----------- $ 8,510,181 ----------- RETAILERS -- 7.5% Dillard Dept. Stores................ 57,000 $ 1,759,875 Family Dollar Stores................ 105,000 2,139,375 Hannaford Brothers Company.......... 85,100 2,893,400 The Limited Inc..................... 75,000 1,378,125 May Department Stores............... 105,000 2,000,900 Price/Costco Inc*................... 85,000 2,638,125 Rite Aid Corp....................... 69,800 2,774,550 ----------- $ 15,584,350 ----------- TRANSPORTATION -- 3.6% ASA Holdings, Inc................... 68,000 $ 1,487,500 Comair Holdings, Inc................ 100,000 2,400,000 Illinois Central Corp............... 55,000 1,760,000 Werner Enterprises Inc.............. 100,000 1,812,500 ----------- $ 7,460,000 ----------- UTILITIES -- 9.7% Ameritech Corp...................... 40,140 $ 2,433,488 Century Telephone Enterprises....... 75,000 2,315,625 Citizens Utilities Cl. A............ 152,400 1,657,350 DQE, Inc............................ 76,800 2,227,200 NIPSCO Industries Inc............... 64,600 2,559,775 Questar Corp........................ 60,000 2,205,000 Sprint Corp......................... 59,800 2,384,525 TECO Energy, Inc.................... 98,000 2,364,250 Wisconsin Energy Corp............... 74,350 1,998,156 ----------- $ 20,145,369 ----------- MISCELLANEOUS -- 4.4% Arrow Electronics, Inc.............. 35,000 $ 1,872,500 Genuine Parts Co.................... 54,050 2,405,225 Leggett & Platt Inc................. 74,600 2,583,025 Marshall Industries*................ 77,865 2,384,616 ----------- $ 9,245,366 ----------- TOTAL EQUITY INTERESTS - 97.7% (identified cost, $163,095,156) $203,311,541 Reserve Funds -- 1.0% Face Amount American Express Corp., 6.753%, 1/2/97 (at amortized cost).............$2,100,000 $ 2,100,000 ----------- TOTAL INVESTMENTS -- 98.7% (identified cost, $165,195,156) $205,411,541 OTHER ASSETS, LESS LIABILITIES -- 1.3% 2,754,040 ----------- NET ASSETS -- 100% $208,165,581 ============ * Non-income-producing security. See notes to financial statements WRIGHT SELECTED BLUE CHIP EQUITIES FUND STATEMENT OF ASSETS AND LIABILITIES December 31, 1996 - ------------------------------------------------------------------------------ ASSETS: Investments -- Identified cost........................ $165,195,156 Unrealized appreciation................ 40,216,385 ------------ Total Value (Note 1A)................ $205,411,541 Cash..................................... 81,750 Dividends and interest receivable........ 363,962 Receivable for Fund shares sold.......... 2,781,512 ------------ Total Assets........................... $208,638,765 ------------ LIABILITIES: Payable for Fund shares reacquired....... $ 452,206 Trustee fees payable..................... 63 Accrued expenses and other liabilities... 20,915 ------------ Total Liabilities...................... $ 473,184 ------------ NET ASSETS.................................. $208,165,581 ============= 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................... $149,903,303 Accumulated undistributed net realized gain on investments (computed on the basis of identified cost)....................... 17,100,419 Unrealized appreciation of investments (computed on the basis of identified cost)....... 40,216,385 Undistributed net investment income...... 945,474 ------------ Net assets applicable to outstanding shares $208,165,581 ============= SHARES OF BENEFICIAL INTEREST OUTSTANDING............................ 11,743,811 ============= NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST................. $17.73 ============= STATEMENT OF OPERATIONS For the Year Ended December 31, 1996 - ------------------------------------------------------------------------------ INVESTMENT INCOME: Income -- Dividends.............................. $ 4,761,492 Interest............................... 247,186 ------------ Total Income......................... $ 5,008,678 ------------ Expenses -- Investment Adviser fee (Note 2)........ $ 1,436,025 Administrator fee (Note 2)............. 277,044 Compensation of Trustees not affiliated with the Investment Adviser or Administrator 1,776 Custodian fee (Note 1C)................ 66,020 Transfer and dividend disbursing agent fees 46,240 Shareholder communication expense...... 30,553 Distribution expenses (Note 3)......... 456,819 Audit services......................... 30,800 Legal services......................... 932 Printing............................... 2,232 Registration costs..................... 24,917 Interest expense....................... 927 Miscellaneous.......................... 2,864 ------------ Total Expenses....................... $ 2,377,149 ------------ Net Investment Income.............. $ 2,631,529 ------------ REALIZED AND UNREALIZED GAIN ON INVESTMENTS: Net realized gain on investment transactions (identified cost basis)................ $ 39,254,389 Change in unrealized appreciation of investments......................... (2,677,293) ------------ Net realized and unrealized gain on investments......................... $ 36,577,096 ------------ Net increase in net assets from operations.................... $ 39,208,625 ============= See notes to financial statements WRIGHT SELECTED BLUE CHIP EQUITIES FUND ===============================================================================
Year Ended December 31, - ------------------------------------------------------------------------------------------------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS 1996 1995 - ------------------------------------------------------------------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS: From operations -- Net investment income...................................................... $ 2,631,529 $ 2,966,203 Net realized gain on investment transactions............................... 39,254,389 10,432,468 Change in unrealized appreciation of investments........................... (2,677,293) 40,854,983 ------------ ------------ Increase in net assets from operations................................ $ 39,208,625 $ 54,253,654 ------------ ------------ Undistributed net investment income included in price of shares sold and redeemed (Note 1E).................................. $ (218,349) $ (87,633) ------------ ------------ Distributions to shareholders -- From net investment income................................................. $ (2,485,082) $ (2,612,968) From net realized gain on investment transactions.......................... (21,491,146) (10,432,468) In excess of net realized gain on investment transactions.................. -- (1,367,084) ------------ ------------ Total distributions to shareholders................................... $ (23,976,228) $ (14,412,520) ------------ ------------ Net decrease from Fund share transactions (exclusive of amounts allocated to net investment income) (Note 4)................................ $ (24,436,411) $ (8,181,348) ------------ ------------ Net increase (decrease) in net assets................................. $ (9,422,363) $ 31,572,153 NET ASSETS: At beginning of year........................................................... 217,587,944 186,015,791 ------------ ------------ At end of year................................................................. $ 208,165,581 $ 217,587,944 ============== ============== UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED IN NET ASSETS.......................... $ 945,474 $ 1,333,910 ============== ==============
See notes to financial statements WRIGHT SELECTED BLUE CHIP EQUITIES FUND ===============================================================================
Year Ended December 31, - ------------------------------------------------------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS 1996 1995 1994 1993 1992 - ------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of year.......... $ 16.830 $ 13.850 $ 14.920 $ 14.790 $ 17.180 -------- -------- -------- -------- -------- Income (Loss) from Investment Operations: Net investment income.................. $ 0.204 $ 0.226 $ 0.233 $ 0.196 $ 0.222 Net realized and unrealized gain (loss) on investments....................... 2.886 3.904 (0.763) 0.104 0.498 -------- -------- -------- -------- -------- Total income (loss) from investment operations....... $ 3.090 $ 4.130 $ (0.530) $ 0.300 $ 0.720 -------- -------- -------- -------- -------- Less Distributions: From net investment income............. $ (0.200) $ (0.200) $ (0.180) $ (0.170) $ (0.200) From net realized gain on investments.. (1.990) (0.840) (0.360) -- (2.910) In excess of net realized gain on investments....................... -- (0.110) -- -- -- -------- -------- -------- -------- -------- Total distributions................ $ (2.190) $ (1.150) $ (0.540) $ (0.170) $ (3.110) -------- -------- -------- -------- -------- Net asset value, end of year................ $ 17.730 $ 16.830 $ 13.850 $ 14.920 $ 14.790 ========= ========= ========= ========= ========= Total Return (1)............................ 18.57% 30.34% (3.52%) 2.06% 4.71% Ratios/Supplemental Data: Net assets, end of year (000 omitted).. $ 208,166 $217,588 $186,016 $ 175,481 $152,997 Ratio of expenses to average net assets 1.04% 1.04% 1.03% 1.03% 1.02% Ratio of net investment income to average net assets........................... 1.15% 1.44% 1.57% 1.28% 1.34% Portfolio turnover rate................ 43% 44% 72% 28% 77% Average commission rate paid (2) ...... $ 0.0497 -- -- -- -- (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. (2) Average commission rate paid is computed by dividing the total dollar amount of commissions paid during the fiscal year by the total number of shares purchased and sold during the fiscal year on which commissions were charged. For fiscal years beginning on or after September 1, 1995, a Fund is required to disclose its average commission rate per share for security trades on which commissions are charged.
See notes to financial statements WRIGHT JUNIOR BLUE CHIP EQUITIES FUND (WJBC) PORTFOLIO OF INVESTMENTS December 31, 1996 =============================================================================== Shares Value - ------------------------------------------------------------------------------- Equity Interests -- 97.0% AUTOMOTIVE -- 4.8% Myers Industries.................... 14,500 $ 244,688 Simpson Industries.................. 24,000 261,374 TBC Corp............................ 22,600 169,500 ----------- $ 675,562 ----------- CONSTRUCTION -- 3.4% Fleetwood Enterprises, Inc.......... 12,000 $ 330,000 Patrick Industries Inc.............. 10,000 151,250 ----------- $ 481,250 ----------- DIVERSIFIED -- 9.7% Carlisle Corp....................... 6,000 $ 363,000 Crane Company....................... 12,750 369,750 Standex Int'l. Corp................. 7,000 216,125 Teleflex, Inc....................... 8,000 417,000 ----------- $ 1,365,875 ----------- DRUGS, COSMETICS & HEALTH CARE -- 2.6% Alberto Culver Company Class A...... 9,000 $ 371,250 ----------- ELECTRICAL -- 3.2% Scotsman Industries Inc............. 10,000 $ 236,250 Woodhead Industries Inc............. 15,500 213,125 ----------- $ 449,375 ----------- ELECTRONICS -- 1.0% Technitrol.......................... 3,800 $ 145,825 ----------- FINANCIAL -- 22.1% Allied Group........................ 9,750 $ 318,094 Associated Banc Corp................ 3,600 153,000 First Commercial Corp............... 7,774 288,610 First Hawaiian Inc.................. 11,000 385,000 McDonald & Co. Investments.......... 4,800 166,800 One Valley Bancorp.................. 10,000 371,250 Raymond James Financial Corp........ 10,000 301,250 Southern National Corp.............. 12,500 453,125 Star Banc Corp...................... 5,000 459,375 Westamerica Bancorp................. 3,500 202,124 ----------- $ 3,098,628 ----------- MACHINERY & EQUIPMENT -- 9.0% Briggs & Stratton Corp.............. 8,000 $ 352,000 Donaldson Co. Inc................... 11,000 368,500 Kysor Industrial Corp............... 5,100 166,387 Lindsay Manufacturing Co............ 8,000 374,000 ----------- $ 1,260,887 ----------- METAL PRODUCERS -- 1.8% Steel Technologies Inc.............. 19,500 $ 258,375 ----------- METAL PRODUCTS MANUFACTURERS -- 7.0% CLARCOR Inc......................... 16,300 $ 360,637 Regal Beloit Corp................... 13,500 264,938 Synalloy Corp....................... 7,900 124,425 Varlen Corp......................... 11,500 236,469 ----------- $ 986,469 ----------- PRINTING & PUBLISHING -- 8.0% American Business Products-GA....... 12,000 $ 301,500 Banta Corp.......................... 14,625 334,547 Central Newspapers Cl A............. 7,500 330,000 Merrill Corp........................ 7,000 161,000 ----------- $ 1,127,047 ----------- RECREATION --2.1% Sturm, Ruger & Company, Inc......... 15,000 $ 290,625 ----------- RETAILERS -- 4.5% Hannaford Brothers Co............... 11,000 $ 374,000 Ruddick Corp........................ 18,600 260,400 ----------- $ 634,400 ----------- TRANSPORTATION -- 0.5% M.S. Carriers Inc................... 4,200 $ 67,200 ----------- UTILITIES -- 2.1% DQE................................. 10,000 $ 290,000 ----------- MISCELLANEOUS -- 15.0% ABM Industries inc.................. 13,500 $ 249,750 Bush Industries Cl. A............... 12,000 231,000 Falcon Products Inc................. 16,000 228,000 Gallagher (A.J.) & Co............... 7,000 217,000 Lawson Prods. Inc................... 10,000 218,750 Marshall Industries*................ 15,000 459,375 Sterling Electronics................ 12,285 164,312 World Fuel Services Corp............ 15,000 333,750 ----------- $ 2,101,937 ----------- TOTAL EQUITY INTERESTS -- 97.0% (identified cost, $10,664,807) $ 13,604,705 Reserve Funds -- 3.6% Face Amount American Express Corp., 6.753%, 1/2/97 (at amortized cost)...............$500,000 500,000 ----------- TOTAL INVESTMENTS -- 100.6% (identified cost, $11,164,807) $ 14,104,705 OTHER ASSETS, LESS LIABILITIES -- (0.6%) (76,005) ----------- NET ASSETS -- 100.0% $ 14,028,700 ============ * Non-income-producing security. See notes to financial statements WRIGHT JUNIOR BLUE CHIP EQUITIES FUND ========================================================================== STATEMENT OF ASSETS AND LIABILITIES December 31, 1996 - -------------------------------------------------------------------------- ASSETS: Investments -- Identified cost........................ $ 11,164,807 Unrealized appreciation................ 2,939,898 ------------ Total Value (Note 1A)................ $ 14,104,705 Cash..................................... 23,828 Dividends and interest receivable........ 27,371 Receivable for investments sold.......... 69,200 ------------ Total Assets........................... $ 14,225,104 ------------ LIABILITIES: Payable for investments purchased........ $ 162,197 Investment Adviser fee payable (Note 2).. 4,258 Payable for Fund shares reacquired....... 23,926 Trustee fees payable..................... 63 Accrued expenses and other liabilities... 5,960 ------------ Total Liabilities...................... $ 196,404 ------------ NET ASSETS.................................. $ 14,028,700 ============= 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................... $ 11,323,459 Accumulated undistributed net realized gain on investments (computed on the basis of identified cost)....................... 150,601 Unrealized appreciation of investments (computed on the basis of identified cost)....... 2,939,898 Distributions in excess of net investment income................................. (385,258) ------------ Net assets applicable to outstanding shares $ 14,028,700 ============= SHARES OF BENEFICIAL INTEREST OUTSTANDING............................ 1,583,392 ============= NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST................. $8.86 ============= STATEMENT OF OPERATIONS For the Year Ended December 31, 1996 - ----------------------------------------------------------------------------- INVESTMENT INCOME: Income -- Dividends............................... $ 342,934 Interest................................ 13,165 ------------ Total Income.......................... $ 356,099 ------------ Expenses -- Investment Adviser fee (Note 2)......... $ 104,339 Administrator fee (Note 2).............. 37,941 Compensation of Trustees not affiliated with the Investment Adviser or Administrator 1,826 Custodian fee (Note 1C)................. 34,285 Transfer and dividend disbursing agent fees 3,660 Shareholder communication expense....... 2,528 Distribution expenses (Note 3).......... 37,941 Audit services.......................... 21,100 Legal services.......................... 932 Registration costs...................... 16,400 Printing................................ 1,850 Interest expense........................ 1,086 Miscellaneous........................... 3,696 ------------ Total Expenses........................ $ 267,584 ------------ Deduct -- Reduction of Investment Adviser Fee (Note 2).......................... $ 1,580 Reduction of distribution expenses by Principal Underwriter (Note 3)..... 37,941 Reduction of custodian fee (Note 1C).... 9,977 ------------ Total................................. $ 49,498 ------------ Net expenses.......................... $ 218,086 ------------ Net investment income............... $ 138,013 ------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain on investment transactions (identified cost basis)................. $ 4,475,140 Change in unrealized appreciation of investments.......................... (1,773,925) ------------ Net realized and unrealized gain on investments.......................... $ 2,701,215 ------------ Net increase in net assets from operations..................... $ 2,839,228 ============= See notes to financial statements WRIGHT JUNIOR BLUE CHIP EQUITIES FUND ===============================================================================
Year Ended December 31, - ------------------------------------------------------------------------------------------------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS 1996 1995 - ------------------------------------------------------------------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS: From operations -- Net investment income...................................................... $ 138,013 $ 281,420 Net realized gain on investment transactions............................... 4,475,140 2,687,430 Change in unrealized appreciation of investments........................... (1,773,925) 2,980,154 ------------ ------------ Increase in net assets from operations................................ $ 2,839,228 $ 5,949,004 ------------ ------------ Undistributed net investment income included in price of shares sold and redeemed (Note 1E).................................. $ (118,531) $ (78,838) ------------ ------------ Distributions to shareholders -- From net investment income................................................... $ (156,925) $ (266,107) From net realized gain on investment transactions............................ (4,391,022) (2,687,430) In excess of net realized gain on investment transactions.................... -- (2,913,944) ------------ ------------ Total distributions to shareholders................................... $ (4,547,947) $ (5,867,481) ------------ ------------ Net decrease from Fund share transactions (exclusive of amounts allocated to net investment income) (Note 4)......................... $ (10,137,508) $ (11,133,267) ------------ ------------ Net decrease in net assets............................................ $ (11,964,758) $ (11,130,582) NET ASSETS: At beginning of year........................................................... 25,993,458 37,124,040 ------------ ------------ At end of year................................................................. $ 14,028,700 $ 25,993,458 ============== ============== UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME INCLUDED IN NET ASSETS......................................................... $ (385,258) $ 250,841 ============== ==============
See notes to financial statements WRIGHT JUNIOR BLUE CHIP EQUITIES FUND ==============================================================================
Year Ended December 31, - --------------------------------------------------------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS 1996 1995 1994 1993 1992 - --------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of year.......... $ 10.850 $ 11.000 $ 11.950 $ 11.690 $ 14.720 -------- -------- -------- -------- -------- Income (Loss) from Investment Operations: Net investment income(1)............... $ 0.067 $ 0.120 $ 0.101 $ 0.101 $ 0.045 Net realized and unrealized gain (loss) on investments....................... 1.738 1.977 (0.431) 0.809 0.315 -------- -------- -------- -------- -------- Total income (loss) from investment operations....... $ 1.805 $ 2.097 $ (0.330) $ 0.910 $ 0.360 -------- -------- -------- -------- -------- Less Distributions: From net investment income............. $ (0.100) $ (0.100) $ (0.100) $ (0.060) $ (0.030) From net realized gain on investments.. (3.695) (1.030) (0.520) (0.590) (3.360) In excess of net realized gain on investments....................... -- (1.117) -- -- -- -------- -------- -------- -------- -------- Total distributions................ $ (3.795) $ (2.247) $ (0.620) $ (0.650) $ (3.390) -------- -------- -------- -------- -------- Net asset value, end of year................ $ 8.860 $ 10.850 $ 11.000 $ 11.950 $ 11.690 ========= ========= ========= ========= ========= Total Return(3)............................. 17.53% 20.51% (2.75%) 7.93% 3.28% Ratios/Supplemental Data: Net assets, end of year (000 omitted).. $ 14,029 $ 25,993 $ 37,124 $ 68,226 $ 64,635 Ratio of expenses to average net assets(1) 1.20%(2) 1.17%(2) 1.11% 1.09% 1.07% Ratio of net investment income to average net assets(1)........................ 0.73% 0.89% 0.91% 0.86% 0.31% Portfolio turnover rate................ 41% 40% 36% 38% 80% Average commission rate paid (4) ..... $ 0.0511 -- -- -- -- (1)For the years ended December 31, 1996 and 1995, the Investment Adviser and the Principal Underwriter reduced their fees. Had such actions not been undertaken, net investment income per share and the ratios would have been as follows: 1996 1995 --------- --------- Net investment income per share........ $ 0.048 $ 0.105 ========= ========= Ratios (As a percentage of average net assets): Expenses........................... 1.41% 1.28% ========= ========= Net investment income.............. 0.52% 0.78% ========= ========= (2) Custodian fees were reduced by credits resulting from cash balances the Trust maintained with the custodian (Note 1C). The computation of net expenses to average daily net assets reported above for the years ended December 31, 1996 and 1995 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 1.15% and 1.14% for the years ended December 31, 1996 and 1995, respectively. (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. (4) Average commission rate paid is computed by dividing the total dollar amount of commissions paid during the fiscal year by the total number of shares purchased and sold during the fiscal year on which commissions were charged. For fiscal years beginning on or after September 1, 1995, a Fund is required to disclose its average commission rate per share for security trades on which commissions are charged.
See notes to financial statements WRIGHT QUALITY CORE EQUITIES FUND (WQC) PORTFOLIO OF INVESTMENTS December 31, 1996 =============================================================================== Shares Value Equity Interests -- 98.7% APPAREL -- 2.0% Liz Claiborne....................... 4,000 $ 154,500 Russell Corp........................ 6,900 205,275 VF Corp............................. 2,500 168,750 ----------- $ 528,525 ----------- AUTOMOTIVE -- 2.0% Eaton Corp.......................... 2,400 $ 167,400 Echlin Inc.......................... 5,500 173,938 Johnson Controls.................... 2,000 165,750 ----------- $ 507,088 ----------- BEVERAGES -- 0.6% Anheuser Busch Co................... 4,000 $ 160,000 ----------- CHEMICALS -- 8.4% Air Products & Chemicals............ 3,000 $ 207,375 Bandag Inc.......................... 2,600 123,175 Clorox Corp......................... 1,600 160,600 Fuller (H.B.) Co.................... 3,700 173,900 Goodyear Tire & Rubber Co........... 3,400 174,675 Great Lakes Chemical Corp........... 3,100 144,925 Lubrizol Corp....................... 5,500 170,500 Morton International Inc............ 3,900 158,925 Nalco Chemical...................... 4,800 173,400 PPG Industries...................... 2,800 157,150 Rohm & Haas Co...................... 2,000 163,250 Sherwin Williams Co................. 3,000 168,000 Sigma Aldrich Corp.................. 3,300 206,043 ----------- $ 2,181,918 ----------- CONSTRUCTION -- 3.8% Caterpillar Tractor Inc............. 2,200 $ 165,550 Fleetwood Enterprises, Inc.......... 5,500 151,250 Medusa Corporation.................. 5,000 171,875 Oakwood Homes Corp.................. 7,000 160,125 Toll Brothers....................... 8,900 173,550 Vulcan Materials Co................. 2,700 164,362 ----------- $ 986,712 ----------- DIVERSIFIED -- 5.1% Allied Signal Inc................... 1,700 $ 113,900 Carlisle Corp....................... 3,000 181,500 Crane Company....................... 5,250 152,250 Danaher Corporation................. 3,800 177,175 Lancaster Colony Corp............... 3,900 179,400 National Service Industries......... 5,100 190,613 Teleflex Inc........................ 3,200 166,800 Tyco Lab............................ 3,000 158,624 ----------- $ 1,320,262 ----------- DRUGS, COSMETICS & HEALTH CARE -- 1.8% Alberto Culver Co. Class A.......... 4,000 $ 165,000 Bristol-Myers Squibb Co............. 1,500 163,125 Dentsply International Inc.......... 2,800 133,000 ----------- $ 461,125 ----------- ELECTRICAL -- 1.9% Emerson Electric Co................. 1,700 $ 164,475 Juno Lighting Co.................... 9,800 156,800 Thomas & Betts Corp................. 3,900 173,062 ----------- $ 494,337 ----------- ELECTRONICS -- 8.5% Applied Materials Inc............... 4,500 $ 161,719 Atmel Corp.......................... 4,800 159,000 Compaq Computer*.................... 2,400 178,200 Dallas Semiconductor Corp........... 9,000 207,000 EMC Corp./Mass...................... 5,800 192,125 Harman Int'l. Industries............ 3,000 166,875 Lam Research Corp................... 5,300 149,063 National Computer System Inc........ 6,500 165,750 Octel Communication................. 10,000 175,000 Raytheon Co......................... 3,900 187,688 Seagate Technology, Inc............. 4,200 165,900 Sun Microsystems, Inc............... 5,500 141,281 Varian Associates Inc............... 2,600 132,274 ----------- $ 2,181,875 ----------- FINANCIAL -- 16.8% AFLAC, Inc.......................... 4,000 $ 171,000 Allied Group........................ 5,800 189,225 American Express Co................. 2,500 141,250 American International Group........ 1,500 162,375 Aon Corp............................ 2,100 130,463 Bancorp Hawaii...................... 3,900 163,800 Commerce Bancshares, Inc............ 4,000 185,000 Compass Bancshares.................. 4,400 174,900 Edwards (A.G.), Inc................. 5,400 181,575 First Hawaiian Inc.................. 5,000 175,000 First Security CP................... 6,000 202,500 First Virginia Banks Inc............ 3,500 167,563 Firstar Corporation................. 3,000 157,500 Franklin Resources Inc.............. 1,700 116,238 Key Corp. (New)..................... 4,000 202,000 MBIA, Inc........................... 1,500 151,875 Mark Twain Bancshares Inc........... 4,400 214,500 Mercantile Bankshares............... 6,000 192,000 Old Kent Financial Corp............. 4,500 214,875 Quick and Reilly Group.............. 6,500 194,188 Southern National Corp.............. 4,500 163,125 Southtrust Corp..................... 4,900 170,888 Star Banc Corp...................... 1,900 174,560 Wilmington Trust Corp............... 4,000 158,000 Zions Bancorporation................ 1,700 176,800 ----------- $ 4,331,200 ----------- FOOD -- 2.1% CPC International Inc............... 2,500 $ 193,750 Sara Lee Corp....................... 4,500 167,625 Universal Foods Corp................ 5,200 183,300 ----------- $ 544,675 ----------- MACHINERY & EQUIPMENT -- 3.5% Briggs & Stratton Corp.............. 4,000 $ 176,000 Dover Corp.......................... 4,100 206,025 Ingersoll Rand Co................... 3,500 155,750 Pentair Inc......................... 6,300 203,175 Pitney-Bowes Inc.................... 2,800 152,600 ----------- $ 893,550 ----------- METAL PRODUCERS -- 0.8% Carpenter Technology................ 5,500 $ 201,438 ----------- METAL PRODUCTS MANUFACTURERS -- 4.1% Harsco Corp......................... 2,400 $ 164,400 Illinois Tool Works Inc............. 2,600 207,675 Snap-On Inc......................... 4,700 167,438 Trimas Corp. Common Stock........... 7,000 167,125 Trinity Industries.................. 4,700 176,250 Watts Industries Inc. Cl. A......... 7,100 169,512 ----------- $ 1,052,400 ----------- OIL, GAS, COAL & RELATED SERVICES -- 0.7% Exxon Corp.......................... 1,800 $ 176,400 ----------- PAPER -- 1.6% Bemis Co............................ 6,000 $ 221,250 Sonoco Products Co.................. 7,155 185,136 ----------- $ 406,386 ----------- PRINTING & PUBLISHING -- 4.3% American Greetings.................. 5,800 $ 164,575 Banta Corp.......................... 6,750 154,406 Central Newspapers Cl. A............ 3,800 167,200 Gannett Co. Inc..................... 2,200 164,725 Lee Enterprises, Inc................ 7,500 174,375 Standard Register................... 5,500 178,750 Tribune Co.......................... 1,400 110,425 ----------- $ 1,114,456 ----------- RECREATION -- 6.2% Callaway Golf Company............... 6,000 $ 172,500 Carnival Corp....................... 5,500 181,500 Cracker Barrel Old Country Store.... 6,900 175,088 Hasbro Inc.......................... 3,900 151,612 Kingworld Productions Inc........... 5,200 191,750 Luby's Cafeteria, Inc............... 8,800 174,900 Ryan's Family Steak Houses*......... 25,000 171,875 Sturm, Ruger & Company, Inc......... 10,000 193,750 Wendy's International, Inc.......... 9,000 184,500 ----------- $ 1,597,475 ----------- RETAILERS -- 8.5% Arbor Drugs Inc..................... 10,000 $ 173,750 Dillard Dept. Stores................ 6,100 188,338 Family Dollar Stores................ 8,500 173,188 Gap Stores.......................... 5,300 159,662 Hannaford Brothers Co............... 5,000 170,000 Land's End Inc...................... 6,400 169,600 The Limited Inc..................... 11,100 203,962 May Department Stores............... 4,000 187,000 Penney (J.C.) Company, Inc.......... 3,700 180,375 Price/Costco Inc*................... 7,000 175,875 Rite Aid Corp....................... 4,000 159,000 Toys "R" Us, Inc. Holding Co........ 3,400 102,000 Walgreen Co......................... 4,300 172,000 ----------- $ 2,214,750 ----------- TRANSPORTATION -- 2.4% ASA Holdings, Inc................... 4,900 $ 107,188 Comair Holdings, Inc................ 7,000 168,000 Illinois Central Corp............... 5,100 163,200 Werner Enterprises Inc.............. 10,000 181,250 ----------- $ 619,638 ----------- UTILITIES -- 7.7% AmeriTech Corp...................... 3,600 $ 218,250 Bell Atlantic Corp.................. 2,700 174,825 Century Telephone Enterprises....... 6,500 200,688 Citizens Utilities Cl. A............ 14,224 154,686 DQE Inc............................. 6,150 178,350 MCI Communications Corp............. 5,000 163,438 NIPSCO Industries, Inc.............. 5,300 210,013 Questar Corp........................ 4,300 158,025 Sprint Corp......................... 4,500 179,438 TECO Energy, Inc.................... 7,000 168,874 Wisconsin Energy Corp............... 6,450 173,343 ----------- $ 1,979,930 ----------- MISCELLANEOUS -- 5.9% Arrow Electronics, Inc.............. 3,200 $ 171,200 Avery-Dennison Corp................. 3,600 127,350 Genuine Parts Co.................... 4,350 193,575 Interpublic Group Cos. Inc.......... 4,300 204,250 Kelly Services...................... 6,400 172,800 Leggett & Platt Inc................. 5,700 197,363 Marshall Industries*................ 5,600 171,500 Paxar Corp.......................... 6,800 117,300 Universal Health Services - Cl. B... 5,700 163,162 ----------- $ 1,518,500 ----------- TOTAL EQUITY INTERESTS -- 98.7% (identified cost, $21,328,452) $ 25,472,640 Reserve Funds -- 1.1% Face Amount American Express Corp., 6.753%, 1/2/97 (at amortized cost)...............$300,000 300,000 ----------- TOTAL INVESTMENTS -- 99.8% (identified cost, $21,628,452) $ 25,772,640 OTHER ASSETS, LESS LIABILITIES -- 0.2% 42,475 ----------- NET ASSETS -- 100% $ 25,815,115 ============ * Non-income-producing security. See notes to financial statements WRIGHT QUALITY CORE EQUITIES FUND STATEMENT OF ASSETS AND LIABILITIES December 31, 1996 - -------------------------------------------------------------------------- ASSETS: Investments -- Identified cost........................ $ 21,628,452 Unrealized appreciation................ 4,144,188 ------------ Total Value (Note 1A)................ $ 25,772,640 Cash..................................... 32,278 Dividends and interest receivable........ 38,849 Receivable for Fund shares sold.......... 2,500 ------------ Total Assets........................... $ 25,846,267 ------------ LIABILITIES: Payable for Fund shares reacquired....... $ 17,011 Trustee fees payable..................... 63 Distribution fee payable (Note 3)........ 6,183 Accrued expenses and other liabilities... 7,895 ------------ Total Liabilities...................... $ 31,152 ------------ NET ASSETS.................................. $ 25,815,115 ============= 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. $ 17,965,459 Accumulated undistributed net realized gain on investments (computed on the basis of identified cost)....................... 3,911,333 Unrealized appreciation of investments (computed on the basis of identified cost) 4,144,188 Distributions in excess of net investment income................................. (205,865) ------------ Net assets applicable to outstanding shares................... $ 25,815,115 ============= SHARES OF BENEFICIAL INTEREST OUTSTANDING............................ 2,073,091 ============= NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST................. $12.45 ============= STATEMENT OF OPERATIONS For the Year Ended December 31, 1996 - ----------------------------------------------------------------------------- INVESTMENT INCOME: Income -- Dividends.............................. $ 727,296 Interest............................... 32,344 ------------ Total Income......................... $ 759,640 ------------ Expenses -- Investment Adviser fee (Note 2)........ $ 175,798 Administrator fee (Note 2)............. 78,132 Compensation of Trustees not affiliated with the Investment Adviser or Administrator 2,369 Custodian fee (Note 1C)................ 38,493 Transfer and dividend disbursing agent fees 7,019 Shareholder communication expense...... 5,838 Distribution expenses (Note 3)......... 78,136 Audit services......................... 28,921 Legal services......................... 932 Registration costs..................... 15,969 Printing............................... 2,078 Miscellaneous.......................... 755 ------------ Total Expenses....................... $ 434,440 ------------ Deduct -- Reduction of distribution expenses by Principal Underwriter (Note 3)..... $ 14,839 Reduction of custodian fee (Note 1C).... 9,399 ------------ Total................................. $ 24,238 ------------ Net expenses.......................... $ 410,202 ------------ Net investment income.............. $ 349,438 ------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain on investment transactions (identified cost basis)................ $ 11,025,665 Change in unrealized appreciation of investments......................... (5,101,936) ------------ Net realized and unrealized gain on investments......................... $ 5,923,729 ------------ Net increase in net assets from operations.................... $ 6,273,167 ============= See notes to financial statements WRIGHT QUALITY CORE EQUITIES FUND ===============================================================================
Year Ended December 31, - ------------------------------------------------------------------------------------------------------------------------ STATEMENTS OF CHANGES IN NET ASSETS 1996 1995 - ------------------------------------------------------------------------------------------------------------------------ INCREASE (DECREASE) IN NET ASSETS: From operations -- Net investment income...................................................... $ 349,438 $ 623,178 Net realized gain on investment transactions............................... 11,025,665 7,097,632 Change in unrealized appreciation of investments........................... (5,101,936) 5,562,948 ------------ ------------ Increase in net assets from operations................................ $ 6,273,167 $ 13,283,758 ------------ ------------ Undistributed net investment income included in price of shares sold and redeemed (Note 1E).................................. $ (43,460) $ (61,558) ------------ ------------ Distributions to shareholders -- From net investment income................................................. $ (342,817) $ (614,587) From net realized gain on investment transactions.......................... (4,865,664) (6,258,626) ------------ ------------ Total distributions to shareholders................................... $ (5,208,481) $ (6,873,213) ------------ ------------ Net decrease from Fund share transactions (exclusive of amounts allocated to net investment income) (Note 4)......................... $ (24,340,385) $ (8,299,369) ------------ ------------ Net decrease in net assets............................................ $ (23,319,159) $ (1,950,382) NET ASSETS: At beginning of year........................................................... 49,134,274 51,084,656 ------------ ------------ At end of year................................................................. $ 25,815,115 $ 49,134,274 ============== ============== DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME INCLUDED IN NET ASSETS........................................................ $ (205,865) $ (169,026) ============== ==============
See notes to financial statements WRIGHT QUALITY CORE EQUITIES FUND ===============================================================================
Year Ended December 31, - -------------------------------------------------------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS 1996 1995 1994 1993 1992 - -------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of year.......... $ 12.650 $ 11.390 $ 12.720 $ 13.380 $ 14.730 -------- -------- -------- -------- -------- Income (Loss) from Investment Operations: Net investment income(1)............... $ 0.064 $ 0.153 $ 0.180 $ 0.176 $ 0.179 Net realized and unrealized gain (loss) on investments....................... 2.131 3.107 (0.295) (0.046) 0.951 -------- -------- -------- -------- -------- Total income (loss) from investment operations....... $ 2.195 $ 3.260 $ (0.115) $ 0.130 $ 1.130 -------- -------- -------- -------- -------- Less Distributions: From net investment income............. $ (0.120) $ (0.160) $ (0.160) $ (0.160) $ (0.160) From net realized gain on investments.. (2.275) (1.840) (1.055) (0.625) (2.320) In excess of net realized gains........ -- -- -- (0.005) -- -------- -------- -------- -------- -------- Total distributions................ $ (2.395) $ (2.000) $ (1.215) $ (0.790) $ (2.480) -------- -------- -------- -------- -------- Net asset value, end of year................ $ 12.450 $ 12.650 $ 11.390 $ 12.720 $ 13.380 ========= ========= ========= ========= ========= Total Return(3)............................. 17.63% 28.98% (0.70%) 1.00% 8.02% Ratios/Supplemental Data: Net assets, end of year (000 omitted).. $ 25,815 $ 49,134 $ 51,085 $ 88,349 $ 81,674 Ratio of expenses to average net assets(1) 1.08%(2) 1.07%(2) 0.99% 0.97% 1.01% Ratio of net investment income to average net assets(1)...................... 0.90% 1.19% 1.46% 1.37% 1.20% Portfolio turnover rate................ 45% 83% 55% 53% 70% Average commission rate paid (4)....... $ 0.0564 -- -- -- -- (1)For the years ended December 31, 1996 and 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: 1996 1995 ------ ----- Net investment income per share........ $ 0.061 $ 0.150 ========= ========= Ratios (As a percentage of average net assets): Expenses........................... 1.12% 1.09% ========= ========= Net investment income.............. 0.86% 1.17% ========= ========= (2) Custodian fees were reduced by credits resulting from cash balances the Trust maintained with the custodian (Note 1C). The computation of net expenses to average daily net assets reported above for the years ended December 31, 1996 and 1995 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% for the years ended December 31, 1996 and 1995. (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. (4) Average commission rate paid is computed by dividing the total dollar amount of commissions paid during the fiscal year by the total number of shares purchased and sold during the fiscal year on which commissions were charged. For fiscal years beginning on or after September 1, 1995, a Fund is required to disclose its average commission rate per share for security trades on which commissions are charged.
See notes to financial statements WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND (WIBC) PORTFOLIO OF INVESTMENTS December 31, 1996 =============================================================================== Shares Value Equity Interests -- 99.4% AUSTRALIA -- 5.7% Australian Gas & Light Co........... 375,000 $ 2,133,904 Broken Hill Proprietary Co. ........ 136,293 1,941,074 Coles Myer Ltd ADR................. 62,551 2,064,183 Email Ltd........................... 618,928 2,002,005 F.H. Faulding (U.K.)................ 365,684 2,473,239 Futuris Corporation Limited.........1,838,488 2,513,158 Lend Lease Corp. Ltd................ 118,894 2,305,581 ----------- $ 15,433,144 ----------- BELGIUM -- 1.9% Colruyt SA.......................... 5,500 $ 2,522,498 Delhaize Freres & Cie Le Lion SA.... 41,200 2,448,013 ----------- $ 4,970,511 ----------- CANADA -- 5.6% Bombardier Inc. Class B............. 132,000 $ 2,436,496 British Columbia Telecom............ 95,300 2,061,530 Linamar Corporation................. 80,200 2,574,532 Loblaw Companies Ltd................ 218,000 2,250,523 Magna Int'l. Inc. Cl. A............. 39,000 2,169,582 Newbridge Network Corp*............. 65,000 1,836,250 Power Financial Corp................ 15,000 534,051 Thomson Corporation................. 48,000 1,059,346 ----------- $ 14,922,310 ----------- CHILE -- 0.6% Embotelladora Andina SA............. 54,000 $ 1,647,000 ----------- DENMARK -- 4.7% Berendsen Sophus A/S Class B........ 16,093 $ 2,071,685 Carlsburg A/S Pfd Class B........... 34,727 2,347,296 Coloplast B A/S..................... 20,000 2,275,738 Icopal Group........................ 7,550 1,921,415 Novo-Nordisk AS..................... 13,000 2,450,664 Radiometer A/S...................... 26,450 1,572,211 ----------- $ 12,639,009 ----------- FINLAND -- 1.0% Orion A/S-B......................... 67,300 $ 2,590,826 ----------- FRANCE -- 9.6% BIC................................. 6,700 $ 1,005,323 Carrefour Supermarche............... 3,700 2,409,103 Castorama Dubois Inv................ 10,541 1,815,451 Comptoirs Modernes SA............... 4,504 2,432,247 L'Air Liquide SA.................... 12,043 1,881,356 LeGrand SA.......................... 10,500 1,790,164 L'Oreal SA.......................... 6,545 2,466,524 LVMH Moet-Hennessy SA ADR.......... 38,620 2,162,720 Pernod Ricard SA.................... 33,280 1,842,114 Sagem SA............................ 3,500 2,112,825 SEB Group........................... 12,000 2,353,713 Synthelabo.......................... 22,900 2,477,705 TV Francaise........................ 10,000 956,605 ----------- $ 25,705,850 ----------- GERMANY -- 5.6% Altana Ind-Aktien DM50.............. 2,500 $ 1,946,701 Bayerische Motoren Werke AG......... 3,109 2,168,318 Beiersdorf AG....................... 45,200 2,235,762 Douglas Holdings AG................. 50,000 1,966,201 Dyckerhoff AG....................... 8,808 2,433,149 Gehe AG............................. 32,000 2,048,749 Heidelberger Zement AG ............. 29,300 2,371,043 ----------- $ 15,169,923 ----------- HONG KONG -- 6.9% China Light & Power Co. Ltd. ADR.... 351,276 $ 1,562,195 Hang Lung Dev. Co. Ltd. ADR......... 206,400 2,268,130 Hang Seng Bank Ltd. ADR............. 192,195 2,335,650 Hong Kong Aircraft Engineering Co... 741,000 2,280,147 Hong Kong & China Gas Co. ADR......1,126,959 2,178,073 Hong Kong Electric Holdings Ltd. ADR 530,520 1,762,653 Johnson Electric Holdings Ltd....... 897,500 2,483,225 Kowloon Motor Bus Co. (1933) Ltd.... 979,200 1,671,141 Swire Pacific Ltd. ADR.............. 214,400 2,044,197 ----------- $ 18,585,411 ----------- IRELAND -- 1.7% Fyffes PLC..........................1,082,000 $ 1,984,945 Greencore Group PLC................. 394,000 2,566,949 ----------- $ 4,551,894 ----------- ITALY -- 0.6% Sirti SPA........................... 281,000 $ 1,724,306 ----------- JAPAN -- 8.5% Chudenko Corp....................... 53,300 $ 1,536,593 Daiichi Pharmaceutical Co., Ltd..... 137,000 2,199,473 Ito-Yokado Co., Ltd. ADR............ 8,500 1,472,625 Kurita Water Industries Ltd......... 99,600 2,011,687 Kyodo Printing Co. Ltd.............. 198,000 1,589,401 National House Industrial Co., Ltd.. 110,000 1,462,173 Ono Pharmaceutical Co. Ltd.......... 56,000 1,667,602 Santen Pharmaceutical Co., Ltd...... 82,600 1,711,104 Seven Eleven Japan Co., Ltd......... 34,580 2,023,671 Taisho Pharmaceutical Co., Ltd...... 85,000 2,002,935 Yamanouchi Pharmaceutical Co., Ltd.. 92,000 1,889,949 York-Benimaru Co., Ltd.............. 60,000 1,672,781 Yurtec Corp......................... 123,447 1,672,882 ----------- $ 22,912,876 ----------- MALAYSIA -- 4.6% Amsteel Corp. Berhad...............2,298,000 $ 1,710,986 Genting Berhad...................... 230,000 1,584,951 Guinness Anchor Berhad.............. 782,000 1,920,158 Hong Leong Indus Berhad............. 580,800 1,978,170 Perlis Plantations Berhad........... 615,000 1,911,980 Sime Darby Berhad................... 599,200 2,361,204 Systems Telekom Malaysia............ 110,000 980,198 ----------- $ 12,447,647 ----------- MEXICO -- 2.0% Cifra S.A. ADR*...................1,227,000 $ 1,499,394 Kimberly Clark De Mexico ADR........ 49,900 1,937,163 Grupo Industrial Maseca-B........... 90,000 114,043 Telefonos de Mexico ADR............ 54,400 1,795,200 ----------- $ 5,345,800 ----------- NETHERLANDS --8.7% CSM N.V............................ 37,318 $ 2,074,303 Elsevier Dutch Certificates......... 120,900 2,044,051 Getronics N.V....................... 96,084 2,609,194 Hagemeyer N.V....................... 27,553 2,203,155 Heineken N.V........................ 9,975 1,766,171 IHC Caland N.V...................... 35,000 2,000,174 Koninklijke Ahold N.V............... 35,167 2,199,083 Nutricia............................ 16,258 2,471,035 Polygram............................ 32,700 1,666,145 Unilever N.V........................ 12,900 2,282,578 Verenigde Neder. Uitgeversbedrijven. 101,000 2,111,111 ----------- $ 23,427,000 ----------- SINGAPORE -- 1.4% Asia Pacific Breweries Ltd.......... 317,000 $ 1,699,428 Singapore Press Holdings Ltd........ 106,200 2,095,154 ----------- $ 3,794,582 ----------- SOUTH AFRICA -- 1.3% South African Breweries Ltd......... 66,803 $ 1,692,390 Tiger Oats Ltd...................... 127,000 1,764,832 ----------- $ 3,457,222 ----------- SPAIN -- 3.4% Banco Popular Espanol............... 11,600 $ 2,278,452 Empresa Nac de Electicidad SA....... 30,600 2,177,886 Gas Natural SDG SA.................. 10,500 2,442,519 Repsol S.A.......................... 55,740 2,138,149 ----------- $ 9,037,006 ----------- SWEDEN -- 4.0% AGA AB B Free....................... 121,500 $ 1,816,117 Astra AB Class B.................... 43,500 2,097,261 Atlas Copco AB "A" Free............. 101,000 2,442,151 Gullspangs Kraft - "B" Free......... 113,000 2,020,252 Hennes & Mauritz AB Class B........ 16,500 2,282,566 ----------- $ 10,658,347 ----------- SWITZERLAND -- 3.9% Nestle SA ADR....................... 34,600 $ 1,851,467 Novartis AG-Reg..................... 1,900 2,176,093 Roche Holding AG - Genussch......... 270 2,100,897 SMH-Sch. Ges. Fuer AG............... 14,750 2,104,781 Societe Generale de Surv. Hold. SA.. 915 2,249,047 ----------- $ 10,482,285 ----------- UNITED KINGDOM -- 17.7% Allied Colloids Group PLC........... 920,000 $ 1,900,695 Allied Colloids Group Rights........ 262,857 36,053 Bowthorpe Holdings PLC.............. 130,000 1,007,440 Cable & Wireless PLC ADR........... 84,300 2,075,888 Christian Salvesen PLC.............. 462,200 2,274,308 Grand Metropolitan PLC ADR......... 55,900 1,767,838 Halma PLC........................... 599,333 1,941,157 Johnson Matthey Public Ltd.......... 225,200 2,123,580 LaPorte PLC......................... 167,070 1,959,260 Marks & Spencer PLC................. 240,700 2,026,260 Morrison (Wm.) Supermarket.......... 686,000 1,934,762 Pearson PLC......................... 163,746 2,104,165 Polypipe PLC........................ 625,000 2,486,025 Powerscreen Int'l................... 245,100 2,374,265 Provident Financial PLC............. 278,767 2,413,627 Reckitt & Colman PLC................ 152,134 1,885,828 Scapa Group PLC..................... 481,873 2,028,250 Securicor Group -A-*................ 411,112 1,977,109 Siebe PLC........................... 135,972 2,527,064 Smith & Nephew PLC.................. 633,693 1,971,937 Smiths Industries PLC............... 180,100 2,476,426 Tesco PLC........................... 417,060 2,538,425 Weir Group PLC...................... 407,700 1,817,403 Wolseley PLC........................ 252,215 2,006,441 ----------- $ 47,654,206 ----------- TOTAL EQUITY INTERESTS -- 99.4% (identified cost, $201,903,626) $ 267,157,155 OTHER ASSETS, LESS LIABILITIES -- 0.6% 1,575,184 ----------- NET ASSETS -- 100% $268,732,339 ============ * Non-income-producing security. ADR: American Depository Receipts WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND =============================================================================== STATEMENT OF ASSETS AND LIABILITIES December 31, 1996 - ------------------------------------------------------------------------------- ASSETS: Investments -- Identified cost........................ $201,903,626 Unrealized appreciation................ 65,253,529 ------------ Total value (Note 1A)................ $267,157,155 Foreign cash............................. 1,209,820 Receivable for investments sold.......... 865,824 Dividends and interest receivable........ 589,055 Receivable for refundable foreign taxes withheld............................... 357,543 Receivable for fund shares sold.......... 112,350 ------------ Total Assets........................... $270,291,747 ------------ LIABILITIES: Payable for investments purchased........ $ 1,191,594 Payable for Fund shares reacquired....... 240,584 Trustees fees payable.................... 63 Bank overdraft........................... 56,373 Payable for open forward foreign currency exchange contracts..................... 1,219 Accrued expenses and other liabilities... 69,575 ------------ Total Liabilities...................... $ 1,559,408 ------------ NET ASSETS.................................. $268,732,339 ============= 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........................ $201,671,898 Accumulated undistributed net realized gain on investments and foreign currency (computed on the basis of identified cost) 873,983 Unrealized appreciation of investments and trans- lation of assets and liabilities in foreign currency (computed on the basis of identified cost) 65,262,058 Undistributed net investment income......... 924,400 ------------ Net assets applicable to outstanding shares $268,732,339 ============= SHARES OF BENEFICIAL INTEREST OUTSTANDING.............................. 16,102,918 ============= NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST................... $16.69 ============= STATEMENT OF OPERATIONS For the Year Ended December 31, 1996 - ---------------------------------------------------------------------------- INVESTMENT INCOME: Income -- Dividends.............................. $ 5,466,347 Interest............................... 299,884 Less: Foreign taxes................... (709,801) ------------ Total Income......................... $ 5,056,430 ------------ Expenses -- Investment Adviser fee (Note 2)........ $ 1,847,061 Administrator fee (Note 2)............. 282,614 Compensation of Trustees not affiliated with the Investment Adviser or Administrator 1,595 Custodian fee (Note 1C)................ 338,478 Transfer and dividend disbursing agent fees 48,214 Shareholder communication expense...... 29,542 Distribution expenses (Note 3)......... 477,861 Audit services......................... 23,625 Legal services......................... 1,609 Registration costs..................... 20,398 Printing............................... 5,042 Interest expense....................... 12,632 Miscellaneous.......................... 11,023 ------------ Total Expenses....................... $ 3,099,694 ------------ Net Investment Income.............. $ 1,956,736 ------------ REALIZED AND UNREALIZED GAIN ON INVESTMENTS: Net realized gain on investment and foreign currency transactions (identified cost basis)........................... $ 19,574,426 Change in unrealized appreciation of investments and translation of assets and liabilities in foreign currencies.. 24,303,355 ------------ Net realized and unrealized gain on investments and foreign currency... $ 43,877,781 ------------ Net increase in net assets from operations.................... $ 45,834,517 ============= See notes to financial statements WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND ===============================================================================
Year Ended December 31, - ------------------------------------------------------------------------------------------------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS 1996 1995 - ------------------------------------------------------------------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS: From operations -- Net investment income........................................................ $ 1,956,736 $ 2,167,787 Net realized gain (loss) on investment and foreign currency transactions..... 19,574,426 (650,735) Change in unrealized appreciation of investments and translation of assets and liabilities in foreign currencies............................ 24,303,355 25,147,505 ------------ ------------ Increase in net assets from operations................................ $ 45,834,517 $ 26,664,557 ------------ ------------ Undistributed net investment income included in price of shares sold and redeemed (Note 1E).................................. $ 23,205 $ 182,554 ------------ ------------ Distributions to shareholders -- From net investment income................................................... $ (1,527,735) $ (1,602,294) From net realized gain....................................................... (15,430,128) -- ------------ ------------ Total distributions................................................... $ (16,957,863) $ (1,602,294) ------------ ------------ Net increase from Fund share transactions (exclusive of amounts allocated to net investment income) (Note 4)........... $ 2,656,534 $ 11,699,493 ------------ ------------ Net increase in net assets............................................ $ 31,556,393 $ 36,944,310 NET ASSETS: At beginning of year........................................................... 237,175,946 200,231,636 ------------ ------------ At end of year................................................................. $ 268,732,339 $ 237,175,946 ============== ============== UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED IN NET ASSETS.......................... $ 924,400 $ 1,357,941 ============== ==============
See notes to financial statements WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND ===============================================================================
Year Ended December 31, - ---------------------------------------------------------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS 1996 1995 1994 1993 1992 - ---------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of year.......... $ 14.770 $ 13.090 $ 13.410 $ 10.520 $ 11.040 --------- --------- --------- --------- --------- Income (loss) from Investment Operations: Net investment income.................. $ 0.128 $ 0.142 $ 0.127 $ 0.107 $ 0.094 Net realized and unrealized gain (loss) on investments..................... 2.902 1.638 (0.347) 2.853 (0.524) --------- --------- --------- --------- --------- Total income (loss) from investment operations......... $ 3.030 $ 1.780 $ (0.220) $ 2.960 $ (0.430) --------- --------- --------- --------- --------- Less Distributions: From net investment income............. $ (0.100) $ (0.100) $ (0.100) $ (0.070) $ (0.090) From net realized gains................ (1.010) -- -- -- -- --------- --------- --------- --------- --------- Total distributions................ $ (1.110) $ (0.100) $ (0.100) $ (0.070) $ (0.090) --------- --------- --------- --------- --------- Net asset value, end of year................ $ 16.690 $ 14.770 $ 13.090 $ 13.410 $ 10.520 ========== ========== ========== ========== ========== Total Return(1)............................. 20.73% 13.61% (1.64%) 28.22% (3.94%) Ratios/Supplemental Data Net assets, end of year (000 omitted).. $268,732 $237,176 $200,232 $100,071 $ 74,409 Ratio of expenses to average daily net assets............................. 1.30% 1.29% 1.31% 1.46% 1.51% Ratio of net investment income to average daily net assets................... 0.82% 0.99% 1.00% 0.67% 0.81% Portfolio Turnover Rate................ 29% 12% 12% 30% 15% Average commision rate paid (2)........ $ 0.1882 -- -- -- -- (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. (2) Average commission rate paid is computed by dividing the total dollar amount of commissions paid during the fiscal year by the total number of shares purchased and sold during the fiscal year on which commissions were charged. For fiscal years beginning on or after September 1, 1995, a Fund is required to disclose its average commission rate per share for security trades on which commissions are charged.
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 Equities Fund (WIBC) series, is registered under the Investment Company Act of 1940, as amended, as a diversified, open-end, management investment company. 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. Foreign Currency Translation -- Investment security valuations, other assets, and liabilities initially expressed in foreign currencies are translated each business day into U.S. dollars based upon current exchange rates. Purchases and sales of foreign investment securities and income and expenses are translated into U.S. dollars based upon currency exchange rates prevailing on the respective dates of such transactions. C. Expense Reduction -- The Funds have entered into an arrangement with its custodian whereby interest earned on uninvested cash balances are used to offset custodian fees. All significant reductions are reported as a reduction of expenses in the Statement of Operations. D. 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. Withholding taxes on foreign dividends have been provided for in accordance with the Trust's understanding of the applicable country's tax rules and rates. For the purpose of Code Sec 852 (b)(3)(C),WBC and WJBC hereby designate $13,799,045 and $4,039,400, respectively as long term capital gain distributions paid during thr taxable year. E. 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. F. 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 year ended December 31, 1996, the following amounts were reclassified due to differences between book and tax accounting created primarily by the deferral of certain losses for tax purposes and character reclassifications between net investment income and net realized capital gains. Accumulated Undistrib- uted Net Realized Gain (Loss) on Investment Undistributed Paid-In and Foreign Currency Net Investment Capital Transactions Income (Loss) - ---------------------------------------------------------------------- WBC $ 965,560 $ (649,026) $(316,534) WJBC 2,340,265 (1,841,609) (498,656) WQC 2,248,668 (2,248,668) - WIBC 938,131 (52,384) (885,747) - ------------------------------------------------------------------------ Net investment income, net realized gains (losses) and net assets were not affected by these reclassifications. G. 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. However, if the ex-dividend date has passed, certain dividends from foreign securities are recorded as the Fund is informed of the ex-dividend date. H. 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 31,1996, the effective annual rate was 0.63% for WBC, 0.55% for WJBC, 0.45% for WQC, and 0.77% for WIBC. To enhance the net income of the Funds, Wright made a reduction of its investment adviser fee by $1,580 for the benefit of WJBC. 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, 1996, the effective annual rate was 0.12% for WBC, 0.20% for WJBC, 0.20% for WQC, and 0.12% for WIBC. 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 made a reduction of its fee by $37,941 and $14,839, 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, - ------------------------------------------------------------------------------------------------------------------------------ 1996 1995 Shares Amount Shares Amount - ------------------------------------------------------------------------------------------------------------------------------ WRIGHT SELECTED BLUE CHIP EQUITIES FUND -- Sold ............................................... 3,370,863 $ 58,680,124 4,266,308 $ 65,320,088 Issued to shareholders in payment of distributions declared.......................... 1,117,467 19,510,827 700,517 11,141,024 Reacquired........................................... (5,675,972) (102,627,362) (5,467,216) (84,642,460) ---------- -------------- ---------- ------------- Net decrease................................... (1,187,642) $ (24,436,411) (500,391) $ (8,181,348) =========== =============== =========== =============== WRIGHT JUNIOR BLUE CHIP EQUITIES FUND -- Sold ............................................... 99,920 $ 1,044,278 225,623 $ 2,466,377 Issued to shareholders in payment of distributions declared.......................... 444,180 3,864,662 444,836 4,715,097 Reacquired........................................... (1,355,874) (15,046,448) (1,650,724) (18,314,741) ---------- ------------- ---------- ------------- Net decrease................................... (811,774) $ (10,137,508) (980,265) $ (11,133,267) =========== =============== =========== =============== WRIGHT QUALITY CORE EQUITIES FUND -- Sold ............................................... 337,332 $ 4,468,704 655,665 $ 8,101,383 Issued to shareholders in payment of distributions declared.......................... 394,213 4,874,918 522,768 6,525,442 Reacquired........................................... (2,543,369) (33,684,007) (1,778,830) (22,926,194) ---------- ------------- ---------- ------------- Net decrease................................... (1,811,824) $ (24,340,385) (600,397) $ (8,299,369) =========== =============== =========== =============== WRIGHT INTERNATIONAL BLUE CHIP EQUITIES FUND -- Sold ............................................... 5,048,536 $ 81,155,741 4,605,546 $ 64,343,250 Issued to shareholders in payment of distributions declared.......................... 890,647 14,344,879 78,962 1,136,990 Reacquired........................................... (5,893,501) (92,844,086) (3,919,612) (53,780,747) ---------- ------------- ---------- ------------- Net increase................................... 45,682 $ 2,656,534 764,896 $ 11,699,493 =========== =============== =========== ===============
(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 31,1996, were as follows:
Wright Selected Wright Junior Wright Wright International Blue Chip Blue Chip Quality Core Blue Chip Equities Fund Equities Fund Equities Fund Equities Fund - -------------------------------------------------------------------------------------------------------------------------------- Purchases......................................... $ 96,097,202 $ 7,748,777 $ 17,333,784 $ 67,170,916 ============ ============ ============ ============ Sales............................................. $ 143,554,776 $ 22,771,343 $ 36,324,780 $ 75,602,559 ============ ============ ============ ============ Redemptions in Kind (at Value).................... $ 525,988 $ -- $ 10,330,294 $ -- ============ ============ ============ ============
In addition, the redemption in kind transactions resulted in realized gains of $86,924 and $2,248,668 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, 1996, as computed on a federal income tax basis, are as follows:
Wright Selected Wright Junior Wright Wright International Blue Chip Blue Chip Quality Core Blue Chip Equities Fund Equities Fund Equities Fund Equities Fund - ------------------------------------------------------------------------------------------------------------------------------- Aggregate cost.................................... $ 165,198,843 $ 11,176,807 $ 21,628,452 $202,747,444 ============ ============ ============ ============ Gross unrealized appreciation..................... $ 43,455,752 $ 2,982,604 $ 4,620,961 $ 71,703,920 Gross unrealized depreciation..................... (3,243,054) (54,706) (476,773) (7,294,209) ------------- ------------- ------------- ------------- Net unrealized appreciation....................... $ 40,212,698 $ 2,927,898 $ 4,144,188 $ 64,409,711 ============ ============ ============ ============
(7) FINANCIAL INSTRUMENTS The Trust may trade in financial instruments with off-balance sheet risk in the normal course of their investing activities in order to manage exposure to market risks such as interest rates and foreign currency exchange rates. These financial instruments include forward foreign currency exchange contracts for WIBC. The notional or contractual amounts of these instruments represent the investment the funds have in particular classes of financial instruments and does not necessarily represent the amounts potentially subject to risk. The measurement of the risks associated with these instruments is meaningful only when all related and offsetting transactions are considered. As of December 31, 1996, WIBC had the following forward foreign currency exchange contracts open:
Settlement Contracts In Exchange For Contracts Net Unrealized Date to Deliver (in U. S. Dollars) at Value Depreciation - ------------------------------------------------------------------------------------------------------------------------------- 1/07/97 Malaysian Ringgit 633,505 $250,893 $250,774 $ (119) 1/08/97 Great British Pound 118,260 202,757 201,835 (922) 1/09/97 Spanish Pesata 46,019,682 354,475 354,297 (178) ----------- ----------- ----------- ----------- TOTAL $808,125 $806,906 $(1,219) ========== ========= =========
At December 31, 1996, the WIBC had sufficient cash and/or securities to cover any commitments under these contracts. (8) RISKS ASSOCIATED WITH FOREIGN INVESTMENTS WIBC's investing in securities issued by companies whose principal business activities are outside the United States may involve significant risks not present in domestic investments. For example, there is generally less publicly available information about foreign companies, particularly those not subject to the disclosure and reporting requirements of the U.S. securities laws. Foreign issuers are generally not bound by uniform accounting, auditing, and financial reporting requirements and standards of practice comparable to those applicable to domestic issuers. Investments in foreign securities also involve the risk of possible adverse changes in investment or exchange control regulations, expropriation or confiscatory taxation, limitation on the removal of funds or other assets of WIBC, political or financial instability or diplomatic and other developments which could affect such investments. Foreign stock markets, while growing in volume and sophistication, are generally not as developed as those in the United States, and securities of some foreign issuers (particularly those located in developing countries) may be less liquid and more volatile than securities of comparable U.S. companies. In general, there is less overall governmental supervision and regulation of foreign securities markets, broker-dealers, and issuers than in the United States. Settlement of securities transactions in foreign countries may be delayed and is generally less frequent than in the United States, which could affect the liquidity of WIBC's assets. WIBC may be unable to sell securities where the registration process is incomplete and may experience delays in receipt of dividends. - ------------------------------------------------------------------------------- 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 The Wright Managed Equity Trust (the Trust) (comprising, respectively, of Wright Selected Blue Chip Equities Fund, Wright Junior Blue Chip Equities Fund, Wright Quality Core Equities Fund, and Wright International Blue Chip Equities Fund) as of December 31, 1996, the related statements of operations for the year then ended, the statements of changes in net assets for the years ended December 31, 1996 and 1995, and the financial highlights for each of the years in the five-year period ended December 31, 1996. 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, 1996, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. 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 Funds of The Wright Managed Equity Trust as of December 31, 1996, 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. Boston, Massachusetts DELOITTE & TOUCHE LLP January 31, 1997 WRIGHT U.S. TREASURY MONEY MARKET FUND PORTFOLIO OF INVESTMENTS December 31, 1996 Face Interest Maturity Amount Issuer Rate Date Value - ---------------------------------------------------------------------------- $ 400,000 U. S. Treasury Bills 5.090% 01/09/97 $ 399,547 1,000,000 U. S. Treasury Bills 5.310% 01/09/97 998,820 500,000 U. S. Treasury Bills 5.325% 01/09/97 499,408 1,000,000 U. S. Treasury Bills 5.010% 01/09/97 998,887 600,000 U. S. Treasury Bills 5.250% 02/06/97 596,850 3,600,000 U. S. Treasury Bills 5.020 02/06/97 3,581,928 1,600,000 U. S. Treasury Bills 5.270 03/06/97 1,585,010 300,000 U. S. Treasury Bills 5.270% 03/06/97 297,190 600,000 U. S. Treasury Bills 5.080% 03/06/97 594,582 3,100,000 U. S. Treasury Bills 4.880 03/06/97 3,073,106 1,500,000 U. S. Treasury Bills 5.245% 04/03/97 1,479,894 1,000,000 U. S. Treasury Bill 5.050% 04/03/97 987,095 3,700,000 U. S. Treasury Bills 4.945% 04/03/97 3,653,242 1,300,000 U. S. Treasury Bills 5.100% 05/01/97 1,277,900 700,000 U. S. Treasury Bills 5.060% 05/01/97 688,193 300,000 U. S. Treasury Bills 5.050% 05/01/97 294,950 3,000,000 U. S. Treasury Bills 5.010% 05/01/97 2,949,901 1,200,000 U. S. Treasury Bills 5.050% 05/29/97 1,175,087 500,000 U. S. Treasury Bills 5.070% 05/29/97 489,578 500,000 U. S. Treasury Bills 5.020% 05/29/97 489,681 300,000 U. S. Treasury Bills 5.030% 05/29/97 293,796 1,500,000 U. S. Treasury Bills 5.000% 01/02/97 1,499,792 1,300,000 U. S. Treasury Bills 5.100% 01/16/97 1,297,238 1,400,000 U. S. Treasury Bills 5.030% 01/16/97 1,397,066 1,100,000 U. S. Treasury Bills 5.120% 01/23/97 1,096,557 1,400,000 U. S. Treasury Bills 5.080% 01/23/97 1,395,654 2,600,000 U. S. Treasury Bills 4.975% 01/30/97 2,589,580 2,900,000 U. S. Treasury Bills 5.310% 02/13/97 2,881,607 3,000,000 U. S. Treasury Bills 5.050% 02/20/97 2,978,958 2,000,000 U. S. Treasury Bills 5.060% 02/27/97 1,983,977 2,000,000 U. S. Treasury Bills 5.075% 02/27/97 1,983,928 2,000,000 U. S. Treasury Bills 4.930% 02/27/97 1,984,388 800,000 U. S. Treasury Bills 5.060% 03/13/97 792,016 500,000 U. S. Treasury Bill 5.020% 03/13/97 495,050 3,800,000 U. S. Treasury Bills 5.030% 03/13/97 3,762,303 5,700,000 U. S. Treasury Bills 4.770% 03/20/97 5,641,091 2,400,000 U. S. Treasury Bills 4.980% 03/27/97 2,371,780 4,000,000 U. S. Treasury Bills 4.850% 03/27/97 3,954,195 1,600,000 U. S. Treasury Bills 5.000% 04/10/97 1,578,000 700,000 U. S. Treasury Bills 4.950% 04/10/97 690,471 3,000,000 U. S. Treasury Bills 4.920% 04/10/97 2,959,410 1,000,000 U. S. Treasury Bills 5.000 04/10/97 986,250 1,000,000 U. S. Treasury Bill 5.040% 04/17/97 985,160 1,100,000 U. S. Treasury Bill 5.040% 04/17/97 1,083,676 3,000,000 U. S. Treasury Bills 4.950% 04/17/97 2,956,276 2,000,000 U. S. Treasury Bills 4.985% 04/17/97 1,970,644 6,900,000 U. S. Treasury Bills 4.960% 04/24/97 6,792,574 500,000 U. S. Treasury Bills 5.055% 05/08/97 491,083 $ 500,000 U. S. Treasury Bills 5.040% 05/08/97 491,110 1,800,000 U. S. Treasury Bills 4.975% 05/08/97 1,768,409 300,000 U. S. Treasury Bills 4.950% 05/08/97 294,761 800,000 U. S. Treasury Bills 5.010% 05/08/97 785,861 2,900,000 U. S. Treasury Bills 5.055% 05/15/97 2,845,434 3,500,000 U. S. Treasury Bills 5.060% 05/22/97 3,430,635 ------------- TOTAL INVESTMENTS AT AMORTIZED COST -- 99.4% $94,619,579 Other Assets, less Liabilities -- 0.6% 563,930 ------------- Net Assets -- 100.0% $95,183,509 ============== See notes to financial statements WRIGHT U.S. TREASURY MONEY MARKET FUND STATEMENT OF ASSETS AND LIABILITIES December 31, 1996 - ---------------------------------------------------------------------------- ASSETS: Investments, at amortized cost and value (Note 1A).............................. $ 94,619,579 Cash..................................... 107,388 Receivable for Fund shares sold.......... 821,011 ------------ Total Assets........................... $ 95,547,978 ------------ LIABILITIES: Payable for Fund shares reacquired....... $ 198,176 Payable for dividend disbursing agent.... 132,600 Investment Adviser fee payable........... 22,919 Trustees' fees payable................... 50 Accrued expenses and other liabilities... 10,724 ------------ Total Liabilities...................... $ 364,469 ------------ NET ASSETS (Consisting of paid-in capital).. $ 95,183,509 ============= Net Asset Value, Offering Price, and Redemption Price Per Share ($95,183,509 / 95,183,509 shares of beneficial interest outstanding) $1.00 ============= STATEMENT OF OPERATIONS For the Year Ended December 31, 1996 - ---------------------------------------------------------------------------- INVESTMENT INCOME: Interest income (Note 1B)................ $ 3,017,861 ------------ Expenses -- Investment Adviser fee (Note 3)........ $ 203,163 Administrator fee (Note 3)............. 40,793 Compensation of Trustees not affiliated with the Investment Adviser or Administrator 1,307 Custodian fee (Note 1C)................ 46,156 Audit and legal........................ 17,167 Registration costs..................... 39,801 Transfer & dividend disbursing agent fees 19,451 Shareholder communication expense...... 6,341 Amortization of organization costs..... 4,953 Printing............................... 3,883 Miscellaneous.......................... 6,739 ------------ Total expenses....................... $ 389,754 ------------ Deduct -- Reduction of Investment Adviser fee (Note 3)........................ $ 127,441 Reduction of custodian fee (Note 1C). 7,855 ------------ Total deductions................... $ 135,296 ------------ Net expenses........................... $ 254,458 ------------ Net investment income.................. $ 2,763,403 =============
Year Ended December 31, - --------------------------------------------------------------------------------------------------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS 1996 1995 - --------------------------------------------------------------------------------------------------------------------------------- FROM OPERATIONS: Net investment income.................................................................. $ 2,763,403 $ 2,423,432 ------------ ------------ DIVIDENDS DECLARED FROM NET INVESTMENT INCOME (Note 2).................................... $ (2,763,403) $ (2,423,432) ------------ ------------ FROM FUND SHARE (PRINCIPAL) TRANSACTIONS AT NET ASSET VALUE OF $1.00 PER SHARE: Proceeds from sale of shares........................................................... $254,493,576 $217,876,175 Net asset value of shares issued to shareholders in payment of dividends declared...... 1,528,366 1,823,063 Cost of shares reacquired.............................................................. (206,727,380) (242,687,133) ------------ ------------ Increase (decrease) in net assets from Fund share transactions....................... $ 49,294,562 $(22,987,895) ------------ ------------ Net increase (decrease) in net assets.............................................. $ 49,294,562 $(22,987,895) NET ASSETS: Beginning of year...................................................................... 45,888,947 68,876,842 ------------ ------------ End of year............................................................................ $ 95,183,509 $ 45,888,947 ============= =============
See notes to financial statements. WRIGHT U.S. TREASURY MONEY MARKET FUND
Year Ended December 31, - --------------------------------------------------------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS 1996 1995 1994 1993 1992 - --------------------------------------------------------------------------------------------------------------------------------- Net asset value -- beginning of year........... $1.00 $1.00 $1.00 $1.00 $1.00 Income from Investment Operations: Net investment income(1) .................. 0.04745 0.05212 0.03494 0.02503 0.03221 Less Distributions: From net investment income.................. (0.04745) (0.05212) (0.03494) (0.02503) (0.03221) ---------- --------- --------- --------- --------- Net asset value -- end of year................. $1.00 $1.00 $1.00 $1.00 $1.00 ========= ========= ========= ========= ========= Total Return(2)................................ 4.85% 5.34% 3.55% 2.53% 3.27% Ratios/Supplemental Data: Net assets, end of year (000 omitted)....... $95,184 $45,889 $68,877 $11,011 $13,856 Ratio of net expenses to average daily net assets(1)............................. 0.45%(3) 0.46%(3) 0.45% 0.45% 0.46% Ratio of net investment income to average daily net assets(1)............................. 4.73% 5.22% 3.77% 2.52% 3.19% (1)During each of the above periods, the Investment Adviser reduced its fee and in certain periods was allocated a portion of the operating expenses. Had such actions not been undertaken, net investment income per share and the ratios would have been as follows: Year Ended December 31, - --------------------------------------------------------------------------------------------------------------------------------- 1996 1995 1994 1993 1992 - --------------------------------------------------------------------------------------------------------------------------------- Net investment income per share................ $0.04524 $0.05120 $0.03253 $0.01977 $0.02958 ========= ========= ========= ========= ========= Ratios (As a percentage of average daily net assets): Expenses.................................... 0.67% 0.65% 0.71% 0.97% 0.72% ========= ========= ========= ========= ========= Net investment income ...................... 4.51% 5.03% 3.51% 1.99% 2.93% ========= ========= ========= ========= ========= (2)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 payable date. (3)Custodian fees were reduced by credits resulting from cash balances the Fund maintained with the Custodian (Note 1C). 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 0.44% and 0.45% for the years ended December 31, 1996 and 1995, respectively.
See notes to financial statements WRIGHT U.S. TREASURY NEAR TERM FUND (WNTB) PORTFOLIO OF INVESTMENTS December 31, 1996
Face Coupon Maturity Market Current Yield To Amount Description Rate Date Price Value Yield(1) Maturity(1) - -------------------------------------------------------------------------------------------------------------------------------- $ 3,000,000 U. S. Treasury Notes 6.875% 03/31/97 $100.359 $ 3,010,770 6.85% 5.31% 2,000,000 U. S. Treasury Notes 6.375% 06/30/97 100.516 2,010,320 6.34% 5.31% 6,200,000 U. S. Treasury Notes 5.500% 07/31/97 100.047 6,202,914 5.50% 5.41% 2,500,000 U. S. Treasury Notes 5.625% 10/31/97 100.047 2,501,175 5.62% 5.56% 7,000,000 U. S. Treasury Notes 6.000% 11/30/97 100.312 7,021,840 5.98% 5.64% 4,000,000 U. S. Treasury Notes 7.250% 02/15/98 101.641 4,065,640 7.13% 5.71% 2,100,000 U. S. Treasury Notes 8.125% 02/15/98 102.594 2,154,474 7.92% 5.70% 7,000,000 U. S. Treasury Notes 5.125% 03/31/98 99.328 6,952,960 5.16% 5.68% 20,000,000 U. S. Treasury Notes 7.875% 04/15/98 102.609 20,521,800 7.68% 5.73% 3,450,000 U. S. Treasury Notes 9.000% 05/15/98 104.219 3,595,556 8.64% 5.75% 2,900,000 U. S. Treasury Notes 5.125% 06/30/98 99.094 2,873,726 5.17% 5.76% 5,100,000 U. S. Treasury Notes 5.875% 08/15/98 100.047 5,102,397 5.87% 5.83% 4,500,000 U. S. Treasury Notes 6.125% 08/31/98 100.437 4,519,665 6.10% 5.84% 2,000,000 U. S. Treasury Notes 7.125% 10/15/98 102.125 2,042,500 6.98% 5.85% 4,400,000 U. S. Treasury Notes 6.375% 01/15/99 100.937 4,441,228 6.32% 5.88% 1,400,000 U. S. Treasury Notes 5.875% 03/31/99 99.906 1,398,684 5.88% 5.92% 3,000,000 U. S. Treasury Notes 7.000% 04/15/99 102.234 3,067,020 6.85% 5.94% 8,500,000 U. S. Treasury Notes 6.375% 07/15/99 100.906 8,577,010 6.32% 5.98% 2,000,000 U. S. Treasury Notes 8.000% 08/15/99 104.750 2,095,000 7.64% 6.02% 2,000,000 U. S. Treasury Notes 7.875% 11/15/99 104.766 2,095,320 7.52% 6.03% 1,500,000 U. S. Treasury Notes 8.500% 02/15/00 106.797 1,601,955 7.96% 6.08% 11,100,000 U. S. Treasury Notes 7.125% 02/29/00 102.953 11,427,783 6.92% 6.08% 8,000,000 U. S. Treasury Notes 6.250% 05/31/00 100.406 8,032,480 6.23% 6.11% 1,500,000 U. S. Treasury Notes 5.625% 02/28/01 98.016 1,470,240 5.74% 6.17% 9,650,000 U. S. Treasury Notes 7.500% 11/15/01 105.266 10,158,169 7.13% 6.23% 3,400,000 Federal Home Loan Banks 5.020% 11/16/98 98.410 3,345,940 5.10% 5.93% ----------- Total Government Interests (identified cost, $129,286,415)-- 100% $130,286,566 RESERVE FUNDS -- 0.3% 425,000 American Express Corp. 6.753% 01/02/97 100.00 425,000 6.75% 6.75% ----------- ------ ------ Total Investments (identified cost, $129,711,415) -- 100.3% $130,711,566 6.63% 5.85% ======= ======= Other Assets, Less Liabilities -- (0.3%) (386,532) ----------- Net Assets -- 100.0% $130,325,034 ============ Average Maturity -- 2.0 Years (1) (1) Unaudited.
See notes to financial statements WRIGHT U.S. TREASURY NEAR TERM FUND STATEMENT OF ASSETS AND LIABILITIES December 31, 1996 - ----------------------------------------------------------------------------- ASSETS: Investments -- Identified cost........................ $129,711,415 Unrealized appreciation................ 1,000,151 ------------ Total value (Note 1A)................ $130,711,566 Cash..................................... 2,806 Receivable for Fund shares sold.......... 8,121 Interest receivable...................... 2,167,394 ------------ Total Assets........................... $132,889,887 ------------ LIABILITIES: Payable for Fund shares reacquired....... $ 2,265,837 Payable to dividend disbursing agent..... 284,815 Trustees' fees payable................... 50 Accrued expenses and other liabilities... 14,151 ------------ Total Liabilities...................... $ 2,564,853 ------------ NET ASSETS.................................. $130,325,034 ============ NET ASSETS CONSIST OF: Proceeds from sales of shares (including shares issued to shareholders in payment of distributions declared), less cost of shares redeemed................................. $148,556,574 Accumulated net realized loss on investment transactions (computed on the basis of identified cost)......................... (19,397,234) Unrealized appreciation of investments (computed on the basis of identified cost) 1,000,151 Undistributed net investment income......... 165,543 ------------ Net assets applicable to outstanding shares $130,325,034 ============ SHARES OF BENEFICIAL INTEREST OUTSTANDING.............................. 12,720,912 ============ NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST................... $10.24 ============ STATEMENT OF OPERATIONS For the Year Ended December 31, 1996 - ---------------------------------------------------------------------------- INVESTMENT INCOME: Interest Income (Note 1B)................ $ 9,408,025 ------------ Expenses -- Investment Adviser fee (Note 3)........ $ 584,296 Administrator fee (Note 3)............. 116,024 Compensation of Trustees not affiliated with the Investment Adviser or Administrator 1,280 Distribution expenses (Note 4)......... 280,119 Custodian fee.......................... 51,732 Transfer and dividend disbursing agent fees 28,042 Shareholder communication expense...... 15,969 Audit services......................... 31,621 Registration costs..................... 19,219 Printing............................... 977 Legal services......................... 667 Miscellaneous.......................... 8,771 ------------ Total expenses....................... $ 1,138,717 Deduct -- Reduction of custodian fee (Note 1C). 7,845 ------------ Net expenses......................... $ 1,130,872 ------------ Net investment income.............. $ 8,277,153 ------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain on investment transactions (identified cost basis)................ $ 564,027 Change in unrealized appreciation of investments......................... (3,403,735) ------------ Net realized and unrealized loss on investments..................... $ (2,839,708) ------------ Net increase in net assets from operations.................... $ 5,437,445 ============ See notes to financial statements WRIGHT U.S. TREASURY NEAR TERM FUND
Year Ended December 31, - ------------------------------------------------------------------------------------------------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS 1996 1995 - ------------------------------------------------------------------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS: From operations -- Net investment income.................................................. $ 8,277,153 $ 10,600,630 Net realized gain (loss) on investment transactions......................................................... 564,027 (376,568) Change in unrealized appreciation of investments....................................................... (3,403,735) 10,227,881 ------------ ------------ Increase in net assets from operations............................ $ 5,437,445 $ 20,451,943 Distributions to shareholders from net investment income................... (8,272,352) (10,580,700) Net decrease from Fund share transactions (Note 5)......................... (10,439,893) (78,393,631) ------------ ------------ Net decrease in net assets........................................ $ (13,274,800) $ (68,522,388) NET ASSETS: At beginning of year....................................................... 143,599,834 212,122,222 ------------ ------------ At end of year............................................................. $ 130,325,034 $ 143,599,834 ============== ============== UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED IN NET ASSETS.............................................................$ 165,543 $ 209,683 ============== ==============
See notes to financial statements WRIGHT U.S. TREASURY NEAR TERM FUND
Year Ended December 31, - -------------------------------------------------------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS 1996 1995 1994 1993 1992 - -------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of year.......... $ 10.450 $ 9.920 $ 10.840 $ 10.660 $ 10.750 -------- -------- -------- -------- -------- Income (loss) from Investment Operations: Net investment income.................... $ 0.606 $ 0.631 $ 0.588 $ 0.655 $ 0.739 Net realized and unrealized gain (loss) on investments......................... (0.212) 0.524 (0.920) 0.180 (0.090) -------- -------- -------- -------- -------- Total income (loss) from investment operations........................... $ 0.394 $ 1.155 $ (0.332) $ 0.835 $ 0.649 -------- -------- -------- -------- -------- Less distributions from net investment income $ (0.604) $ (0.625) $ (0.588) $ (0.655) $ (0.739) -------- -------- -------- -------- -------- Net asset value, end of year................ $ 10.240 $ 10.450 $ 9.920 $ 10.840 $ 10.660 ========= ========= ========= ========= ======== Total Return(1)............................. 3.91% 11.93% (3.10%) 7.95% 6.26% Ratios/Supplemental Data: Net assets, end of year (000 omitted).... $ 130,325 $ 143,600 $212,122 $ 380,917 $371,074 Ratio of expenses to average net assets.. 0.8% 0.8% 0.7% 0.7% 0.8% Ratio of net investment income to average net assets............................. 5.9% 6.2% 5.7% 6.0% 6.9% Portfolio Turnover Rate.................. 28% 21% 33% 22% 6% (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 year reported. Dividends and distributions, if any, are assumed to be reinvested at the net asset value on the record date.
See notes to financial statements WRIGHT U.S. TREASURY FUND (WUSTB) PORTFOLIO OF INVESTMENTS December 31, 1996
Face Coupon Maturity Market Current Yield To Amount Description Rate Date Price Value Yield(1) Maturity(1) - -------------------------------------------------------------------------------------------------------------------------------- $ 5,500,000 U. S. Treasury Notes 5.875% 11/15/99 $ 99.609 $ 5,478,495 5.90% 6.02% 3,400,000 U. S. Treasury Notes 6.250% 05/31/00 100.406 3,413,804 6.23% 6.11% 5,700,000 U. S. Treasury Notes 5.250% 01/31/01 96.828 5,519,196 5.42% 6.14% 600,000 U. S. Treasury Notes 6.625% 07/31/01 101.594 609,564 6.52% 6.22% 1,000,000 U. S. Treasury Notes 6.250% 02/15/03 99.875 998,750 6.25% 6.27% 14,200,000 U. S. Treasury Notes 6.500% 05/15/05 100.672 14,295,424 6.46% 6.39% 2,000,000 U. S. Treasury Notes 5.875% 11/15/05 96.422 1,928,440 6.09% 6.41% 4,500,000 U. S. Treasury Notes 5.625% 02/15/06 94.625 4,258,125 5.95% 6.41% 600,000 U. S. Treasury Bonds 11.625% 11/15/04 132.031 792,186 8.81% 6.38% 8,950,000 U. S. Treasury Bonds 6.500% 08/15/05 100.641 9,007,370 6.46% 6.40% 1,000,000 U. S. Treasury Bonds 10.000% 05/15/10 122.281 1,222,810 8.18% 7.35% 1,300,000 U. S. Treasury Bonds 14.000% 11/15/11 153.766 1,998,958 9.11% 7.82% 4,400,000 U. S. Treasury Bonds 7.250% 05/15/16 105.594 4,646,136 6.86% 6.73% ----------- Total Investments (identified cost, $53,927,911)-- 98.5% $54,169,258 Other Assets, less Liabilities-- 1.5% 808,691 ----------- Net Assets-- 100.0% $54,977,949 ============ Average Maturity -- 8.3 Years (1) (1) Unaudited.
See notes to financial statements WRIGHT U.S. TREASURY FUND STATEMENT OF ASSETS AND LIABILITIES December 31, 1996 - ----------------------------------------------------------------------------- ASSETS: Investments -- Identified cost........................ $ 53,927,911 Unrealized appreciation................ 241,347 ------------ Total value (Note 1A)................ $ 54,169,258 Cash..................................... 393,969 Receivable for Fund shares sold.......... 139,173 Interest receivable...................... 763,630 ------------ Total Assets........................... $ 55,466,030 ------------ LIABILITIES: Payable for Fund shares reacquired....... $ 323,405 Payable to dividend disbursing agent..... 157,828 Trustees' fees payable................... 50 Accrued expenses and other liabilities... 6,798 ------------ Total Liabilities...................... $ 488,081 ------------ NET ASSETS.................................. $ 54,977,949 ============ NET ASSETS CONSIST OF: Proceeds from sales of shares (including shares issued to shareholders in payment of distributions declared), less cost of shares redeemed.. $ 54,271,290 Accumulated net realized gain on investments (computed on the basis of identified cost) 448,189 Unrealized appreciation of investments (computed on the basis of identified cost)......... 241,347 Undistributed net investment income......... 17,123 ------------ Net assets applicable to outstanding shares $ 54,977,949 ============ SHARES OF BENEFICIAL INTEREST OUTSTANDING.............................. 4,047,706 ============ NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST................... $13.58 ============ STATEMENT OF OPERATIONS For the Year Ended December 31, 1996 - --------------------------------------------------------------------------- INVESTMENT INCOME: Interest Income (Note 1B)................ $ 2,633,329 ------------ Expenses -- Investment Adviser fee (Note 3)........ $ 163,849 Administrator fee (Note 3)............. 40,959 Compensation of Trustees not affiliated with the Investment Adviser or Administrator 1,294 Distribution expenses (Note 4)......... 81,923 Custodian fee.......................... 37,011 Audit services......................... 19,100 Transfer and dividend disbursing agent fees 8,131 Shareholder communication expense...... 4,214 Registration costs..................... 27,462 Printing............................... 624 Legal services......................... 667 Miscellaneous.......................... 5,219 ------------ Total expenses....................... $ 390,453 ------------ Deduct -- Reduction of distribution expenses by Principal Underwriter (Note 4)... $ 6,191 Reduction of custodian fee (Note 1C). 28,748 ------------ Total deductions..................... $ 34,939 ------------ Net expenses......................... $ 355,514 ------------ Net investment income.............. $ 2,277,815 ------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain on investment transactions (identified cost basis)................ $ 1,565,818 Change in unrealized appreciation of investments......................... (2,085,302) ------------ Net realized and unrealized loss on investments..................... $ (519,484) ------------ Net increase in net assets from operations.................... $ 1,758,331 ============ See notes to financial statements WRIGHT U.S. TREASURY FUND
Year Ended December 31, - --------------------------------------------------------------------------------------------------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS 1996 1995 - --------------------------------------------------------------------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS: From operations -- Net investment income.................................................. $ 2,277,815 $ 1,071,994 Net realized gain on investment transactions......................................................... 1,565,818 529,670 Change in unrealized appreciation of investments....................................................... (2,085,302) 2,464,279 ------------ ------------ Increase in net assets from operations............................ $ 1,758,331 $ 4,065,943 ------------ ------------- Distributions to shareholders -- From net investment income............................................. $ (2,268,131) $ (1,072,005) From net realized gain on investments.................................. (683,329) -- ------------ ------------ Total distributions............................................... $ (2,951,460) $ (1,072,005) ------------ ------------- Net increase (decrease) from Fund share transactions (Note 5) .............................................................. $ 41,014,834 $ (4,496,109) ------------ ------------ Net increase (decrease) in net assets............................. $ 39,821,705 $ (1,502,171) NET ASSETS: At beginning of year....................................................... 15,156,244 16,658,415 ------------ ------------ At end of year............................................................. $ 54,977,949 $ 15,156,244 ============== ============== UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED IN NET ASSETS.............................................................. $ 17,123 $ 7,439 ============== ==============
See notes to financial statements WRIGHT U.S. TREASURY FUND
Year Ended December 31, - --------------------------------------------------------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS 1996(3) 1995 1994 1993 1992 - --------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of year.......... $ 14.710 $ 12.250 $ 14.360 $ 13.190 $ 13.220 -------- -------- -------- -------- -------- Income (loss) from Investment Operations: Net investment income(1)................. $ 0.769 $ 0.880 $ 0.880 $ 0.892 $ 0.911 Net realized and unrealized gain (loss) on investments......................... (0.973) 2.458 (2.110) 1.170 (0.030) -------- -------- -------- -------- -------- Total income (loss) from investment operations........... $ (0.204) $ 3.338 $ (1.230) $ 2.062 $ 0.881 -------- -------- -------- -------- -------- Less Distributions: From net investment income............... $ (0.756) $ (0.878) $ (0.880) $ (0.892) $ (0.911) From net realized gain................... (0.170) -- -- -- -- -------- -------- -------- -------- -------- Total distributions.................... $ (0.926) $ (0.878) $ (0.880) $ (0.892) $ (0.911) -------- -------- -------- -------- -------- Net asset value, end of year................ $ 13.580 $ 14.710 $ 12.250 $ 14.360 $ 13.190 ========= ========= ========= ========= ========= Total Return(2)............................. (1.23%) 28.18% (8.66%) 15.90% 7.07% Ratios/Supplemental Data: Net assets, end of year (000 omitted).... $ 54,978 $ 15,156 $ 16,658 $ 29,846 $ 29,703 Ratio of net expenses to average net assets 0.9% 0.9% 0.9% 0.9% 0.9% Ratio of net investment income to average net assets............................. 5.5% 6.6% 6.9% 6.3% 7.1% Portfolio Turnover Rate.................. 65% 8% 1% 12% 15% (1)During each of the five years ended December 31, 1996, the operating expenses of the Fund were reduced by an allocation of expenses to the Investment Adviser or a reduction in distribution fee, or a combination thereof. Had such action not been undertaken, the net investment income per share and the ratios would have been as follows: Year Ended December 31, - -------------------------------------------------------------------------------------------------------------------------------- 1996 1995 1994 1993 1992 - -------------------------------------------------------------------------------------------------------------------------------- Net investment income per share............. $ 0.769 $ 0.827 $ 0.854 $ 0.878 $ 0.898 ========= ========= ========= ========= ========= Ratios (As a percentage of average net assets): Expenses .............................. 0.9% 1.2% 1.1% 1.0% 1.0% ========= ========= ========= ========= ========= Net investment income.................... 5.5% 6.2% 6.7% 6.2% 7.0% ========= ========= ========= ========= ========= (2)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 year reported. Dividends and distributions, if any, are assumed to be reinvested at the net asset value on the record date. (3)Certain of the per share data are based on average shares outstanding.
See notes to financial statements WRIGHT TOTAL RETURN BOND FUND (WTRB) PORTFOLIO OF INVESTMENTS December 31, 1996
Face Coupon Maturity Market Current Yield To Amount Description Rate Date Price Value Yield(1) Maturity(1) - --------------------------------------------------------------------------------------------------------------------------------- $ 2,000,000 U.S. Treasury Bonds 8.250% 05/15/05 $105.406 $ 2,108,120 7.83% 7.37% 21,700,000 U.S. Treasury Bonds 6.500% 08/15/05 100.641 21,839,097 6.46% 6.40% 8,200,000 U.S. Treasury Bonds 7.250% 05/15/16 105.594 8,658,708 6.87% 6.73% 11,000,000 U.S. Treasury Notes 5.875% 11/15/99 99.609 10,956,990 5.90% 6.02% 1,900,000 U.S. Treasury Notes 5.875% 06/30/00 99.250 1,885,750 5.92% 6.12% 2,300,000 U.S. Treasury Notes 6.250% 08/31/00 100.375 2,308,625 6.23% 6.13% 4,000,000 U.S. Treasury Notes 5.750% 10/31/00 98.672 3,946,880 5.83% 6.14% 3,000,000 U.S. Treasury Notes 7.750% 02/15/01 105.672 3,170,160 7.33% 6.17% 12,500,000 U.S. Treasury Notes 6.250% 02/15/03 99.875 12,484,375 6.26% 6.27% 1,700,000 U.S. Treasury Notes 7.500% 02/15/05 106.953 1,818,201 7.01% 6.39% 11,300,000 U.S. Treasury Notes 6.500% 05/15/05 100.672 11,375,936 6.46% 6.39% 5,500,000 U.S. Treasury Notes 5.875% 11/15/05 96.422 5,303,210 6.09% 6.41% 200,000 U.S. Treasury Notes 5.625% 02/15/06 94.625 189,250 5.95% 6.41% 4,000,000 U.S. Treasury Notes 6.500% 10/15/06 100.547 4,021,880 6.47% 6.42% ---------- Total Investments (identified cost, $89,923,919)-- 98.6% $90,067,182 Other Assets, Less Liabilities -- 1.4% 1,314,449 ---------- Net Assets -- 100.0% $91,381,631 ============ Average Maturity -- 8.0 Years (1)
(1) Unaudited. See notes to financial statements WRIGHT TOTAL RETURN BOND FUND STATEMENT OF ASSETS AND LIABILITIES December 31,1996 - --------------------------------------------------------------------------- ASSETS: Investments -- Identified cost........................ $ 89,923,919 Unrealized appreciation................ 143,263 ------------ Total value (Note 1A)................ $ 90,067,182 Cash..................................... 18,200 Receivable for Fund shares sold.......... 12,971 Interest receivable...................... 1,432,179 ------------ Total Assets........................... $ 91,530,532 ------------ LIABILITIES: Payable for Fund shares reacquired....... $ 10,268 Payable to dividend disbursing agent..... 125,413 Trustees' fees payable................... 50 Accrued expenses and other liabilities... 13,170 ------------ Total Liabilities...................... $ 148,901 ------------ NET ASSETS.................................. $ 91,381,631 ============ NET ASSETS CONSIST OF: Proceeds from sales of shares (including shares issued to shareholders in payment of distributions declared), less cost of shares redeemed.. $ 91,156,702 Accumulated net realized gain on investment transactions (computed on the basis of identified cost)......................... 6,178 Unrealized appreciation of investments (computed on the basis of identified cost)......... 143,263 Undistributed net investment income......... 75,488 ------------ Net assets applicable to outstanding shares $ 91,381,631 ============ SHARES OF BENEFICIAL INTEREST OUTSTANDING.............................. 7,313,412 ============ NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST................... $12.50 ============ STATEMENT OF OPERATIONS For the Year Ended December 31, 1996 - ------------------------------------------------------------------------ INVESTMENT INCOME: Interest Income (Note 1B)................ $ 7,152,559 ------------ Expenses -- Investment Adviser fee (Note 3)........ $ 442,120 Administrator fee (Note 3)............. 103,457 Compensation of Trustees not affiliated with the Investment Adviser or Administrator 1,280 Distribution expenses (Note 4)......... 218,218 Custodian fee.......................... 45,296 Audit services......................... 30,698 Transfer and dividend disbursing agent fees 25,845 Shareholder communication expense...... 12,380 Registration costs..................... 19,832 Legal services......................... 667 Printing............................... 1,519 Interest expense....................... 46 Miscellaneous.......................... 6,610 ------------ Total expenses....................... $ 907,968 Deduct -- Reduction of custodian fee (Note 1C). 8,952 ------------ Net expenses......................... $ 899,016 ------------ Net investment income.............. $ 6,253,543 ------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain on investment transactions (identified cost basis)................ $ 1,478,297 Change in unrealized appreciation of investments......................... (7,506,256) ------------ Net realized and unrealized loss on investments..................... $ (6,027,959) ------------ Net increase in net assets from operations.................... $ 225,584 ============ See notes to financial statements WRIGHT TOTAL RETURN BOND FUND
Year Ended December 31, - -------------------------------------------------------------------------------------------------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS 1996 1995 - -------------------------------------------------------------------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS: From operations -- Net investment income...................................................... $ 6,253,543 $ 7,829,870 Net realized gain on investment transactions............................................................. 1,478,297 411,969 Change in unrealized appreciation of investments........................................................... (7,506,256) 17,483,217 ------------ ------------ Increase in net assets from operations................................ $ 225,584 $ 25,725,056 Distributions to shareholders from net investment income....................... (6,256,731) (7,796,582) Net decrease from Fund share transactions (Note 5)............................. (25,348,824) (38,663,606) ------------ ------------ Net decrease in net assets............................................ $ (31,379,971) $ (20,735,132) NET ASSETS: At beginning of year........................................................... 122,761,602 143,496,734 ------------ ------------ At end of year................................................................. $ 91,381,631 $ 122,761,602 ============== ============== UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED IN NET ASSETS.................................................................. $ 75,488 $ 78,676 ============== ==============
See notes to financial statements WRIGHT TOTAL RETURN BOND FUND
Year Ended December 31, - --------------------------------------------------------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS 1996(2) 1995 1994 1993 1992 - --------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of year.......... $ 13.120 $ 11.430 $ 13.010 $ 12.610 $ 12.580 -------- -------- -------- -------- -------- Income (loss) from Investment Operations: Net investment income.................... $ 0.720 $ 0.758 $ 0.740 $ 0.789 $ 0.830 Net realized and unrealized gain (loss) on investments............................ (0.809) 1.685 (1.580) 0.580 0.030 -------- -------- -------- -------- -------- Total income (loss) from investment operations........... $ (0.089) $ 2.443 $ (0.840) $ 1.369 $ 0.860 -------- -------- -------- -------- -------- Less Distributions: From net investment income............... $ (0.709) $ (0.753) $ (0.740) $ (0.789) $ (0.830) From net realized gain on investments.... -- -- -- (0.177) -- In excess of net realized gain on investments -- -- -- (0.003) -- -------- -------- -------- -------- -------- Total distributions.................... $ (0.709) $ (0.753) $ (0.740) $ (0.969) $ (0.830) -------- -------- -------- -------- -------- Net asset value, end of year................ $ 12.500 $ 13.120 $ 11.430 $ 13.010 $ 12.610 ========= ========= ========= ========= ========= Total Return(1)............................. 0.87% 21.97% (6.57%) 11.03% 7.13% Ratios/Supplemental Data: Net assets, end of year (000 omitted).... $ 91,382 $122,762 $143,497 $ 259,513 $217,564 Ratio of net expenses to average net assets 0.8% 0.8% 0.8% 0.8% 0.8% Ratio of net investment income to average net assets............................. 5.7% 6.2% 6.1% 6.0% 6.7% Portfolio Turnover Rate.................. 96% 50% 32% 36% 13% (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 year reported. Dividends and distributions, if any, are assumed to be reinvested at the net asset value on the record date. (2)Certain of the per share data are based on average shares outstanding.
See notes to financial statements WRIGHT CURRENT INCOME FUND (WCIF) PORTFOLIO OF INVESTMENTS December 31, 1996
Face Coupon Maturity Market Current Amount Description Rate Date Price Value Yield(1) - ------------------------------------------------------------------------------------------------------------------------------- $ 1,359,586 GNMA POOL # 000545 7.500% 12/20/22 $100.062 $ 1,360,429 7.50% 2,205,436 GNMA POOL # 000723 7.500% 1/20/23 100.062 2,206,804 7.50% 2,018,625 GNMA POOL # 001268 8.000% 7/20/23 102.156 2,062,147 7.83% 129,558 GNMA POOL # 001596 9.000% 4/20/21 105.656 136,886 8.52% 518,937 GNMA POOL # 001788 7.000% 7/20/24 97.718 507,095 7.16% 987,572 GNMA POOL # 002218 7.500% 5/20/26 99.624 983,859 7.53% 6,240 GNMA POOL # 012526 8.000% 11/15/06 103.782 6,477 7.71% 4,903 GNMA POOL # 000434 8.000% 4/15/01 102.477 5,024 7.81% 1,263 GNMA POOL # 000473 7.500% 4/15/01 101.116 1,278 7.42% 3,077 GNMA POOL # 001408 6.500% 3/15/02 99.386 3,058 6.54% 3,014 GNMA POOL # 003026 8.000% 1/15/04 103.095 3,108 7.76% 1,403 GNMA POOL # 003331 8.000% 1/15/04 103.095 1,447 7.76% 3,876 GNMA POOL # 004183 8.000% 7/15/04 103.366 4,006 7.74% 2,774 GNMA POOL # 004433 9.000% 11/15/04 105.403 2,925 8.54% 963,144 GNMA POOL # 004702 7.500% 2/15/26 100.093 964,040 7.49% 7,746 GNMA POOL # 005466 8.500% 3/15/05 104.464 8,092 8.14% 785 GNMA POOL # 005561 8.500% 4/15/05 104.096 818 8.17% 3,956,983 GNMA POOL # 005601 8.000% 11/15/26 102.000 4,036,123 7.84% 3,280 GNMA POOL # 005687 7.250% 2/15/05 101.358 3,325 7.15% 4,618 GNMA POOL # 005910 7.250% 2/15/05 101.358 4,681 7.15% 17,453 GNMA POOL # 007003 8.000% 7/15/05 103.594 18,081 7.72% 2,864 GNMA POOL # 007319 6.500% 10/15/04 98.955 2,835 6.57% 7,032 GNMA POOL # 009106 8.250% 5/15/06 104.407 7,342 7.90% 9,296 GNMA POOL # 009889 7.250% 2/15/06 101.278 9,415 7.16% 1,822 GNMA POOL # 011191 7.250% 4/15/06 101.278 1,845 7.16% 100,744 GNMA POOL # 151443 10.000% 3/15/16 110.134 110,954 9.08% 32,247 GNMA POOL # 153564 10.000% 4/15/16 110.160 35,524 9.08% 172,677 GNMA POOL # 172558 9.500% 8/15/16 108.625 187,571 8.75% 181,716 GNMA POOL # 176992 8.000% 11/15/16 103.555 188,176 7.73% 53,259 GNMA POOL # 177784 8.000% 10/15/16 103.499 55,123 7.73% 63,354 GNMA POOL # 180033 9.500% 9/15/16 108.625 68,819 8.75% 11,057 GNMA POOL # 188060 9.500% 10/15/16 108.625 12,011 8.75% 8,161 GNMA POOL # 190959 8.500% 2/15/17 105.518 8,611 8.06% 144,260 GNMA POOL # 192357 8.000% 4/15/17 103.499 149,309 7.73% 490,228 GNMA POOL # 194057 8.500% 4/15/17 105.531 517,343 8.05% 109,267 GNMA POOL # 194287 9.500% 3/15/17 108.625 118,692 8.75% 876,564 GNMA POOL # 194926 8.500% 2/15/17 105.518 924,933 8.06% 15,221 GNMA POOL # 196063 8.500% 3/15/17 105.518 16,061 8.06% 207,669 GNMA POOL # 199537 8.000% 3/15/17 103.499 214,936 7.73% 323,231 GNMA POOL # 203369 8.000% 12/15/16 103.499 334,542 7.73% 15,960 GNMA POOL # 206740 10.000% 10/15/17 110.140 17,579 9.08% 114,020 GNMA POOL # 206762 9.000% 4/15/21 106.593 121,538 8.44% 94,616 GNMA POOL # 207019 8.000% 3/15/17 103.499 97,928 7.73% 33,900 GNMA POOL # 208076 8.000% 4/15/17 103.611 35,125 7.72% 33,400 GNMA POOL # 210520 10.500% 8/15/17 111.747 37,324 9.40% 34,713 GNMA POOL # 210618 9.500% 4/15/17 108.625 37,707 8.75% 163,148 GNMA POOL # 211013 9.000% 1/15/20 106.655 174,006 8.44% 167,455 GNMA POOL # 211231 8.500% 5/15/17 105.518 176,695 8.06% 107,457 GNMA POOL # 212601 8.500% 6/15/17 105.518 113,387 8.06% 34,914 GNMA POOL # 218420 8.500% 11/15/21 104.750 36,573 8.12% 256,313 GNMA POOL # 219335 8.000% 5/15/17 103.499 265,282 7.73% 260,296 GNMA POOL # 220703 8.000% 5/15/17 103.499 269,404 7.73% 28,785 GNMA POOL # 220917 8.500% 4/15/17 105.518 30,374 8.06% 633,833 GNMA POOL # 222112 8.000% 1/15/22 102.900 652,215 7.78% 41,738 GNMA POOL # 223126 10.000% 8/15/17 110.140 45,971 9.08% 136,713 GNMA POOL # 223133 9.500% 7/15/17 108.593 148,462 8.75% 31,960 GNMA POOL # 223348 10.000% 8/15/18 110.140 35,201 9.08% 22,305 GNMA POOL # 223588 10.000% 12/15/18 110.140 24,567 9.08% 16,565 GNMA POOL # 224078 10.000% 7/15/18 110.093 18,237 9.08% 101,972 GNMA POOL # 228308 10.000% 1/15/19 110.093 112,264 9.08% 78,208 GNMA POOL # 228483 9.500% 9/15/19 108.531 84,880 8.75% 57,262 GNMA POOL # 230223 9.500% 4/15/18 108.625 62,201 8.75% 72,459 GNMA POOL # 235000 10.000% 1/15/18 110.140 79,807 9.08% 69,081 GNMA POOL # 245580 9.500% 7/15/18 108.562 74,996 8.75% 56,939 GNMA POOL # 247473 10.000% 9/15/18 110.140 62,713 9.08% 162,114 GNMA POOL # 247681 9.000% 11/15/19 106.655 172,904 8.44% 41,486 GNMA POOL # 247872 10.000% 9/15/18 110.093 45,674 9.08% 34,798 GNMA POOL # 250412 8.000% 3/15/18 103.349 35,964 7.74% 68,845 GNMA POOL # 251241 9.500% 6/15/18 108.593 74,761 8.75% 119,377 GNMA POOL # 258911 9.500% 9/15/18 108.562 129,599 8.75% 59,373 GNMA POOL # 260999 9.500% 9/15/18 108.562 64,457 8.75% 88,738 GNMA POOL # 263439 10.000% 2/15/19 110.093 97,695 9.08% 98,401 GNMA POOL # 265267 9.500% 8/15/20 108.531 106,797 8.75% 40,840 GNMA POOL # 266983 10.000% 2/15/19 110.093 44,963 9.08% 31,663 GNMA POOL # 273690 9.500% 8/15/19 108.562 34,375 8.75% 56,420 GNMA POOL # 274489 9.500% 12/15/19 108.531 61,233 8.75% 37,979 GNMA POOL # 275456 9.500% 8/15/19 108.531 41,219 8.75% 83,909 GNMA POOL # 275538 9.500% 1/15/20 108.562 91,094 8.75% 50,860 GNMA POOL # 277205 9.000% 12/15/19 106.864 54,351 8.42% 45,711 GNMA POOL # 285467 9.500% 7/15/20 108.531 49,611 8.75% 98,896 GNMA POOL # 285744 9.000% 5/15/20 106.864 105,685 8.42% 127,047 GNMA POOL # 286556 9.000% 3/15/20 106.655 135,503 8.44% 2,988 GNMA POOL # 287999 9.000% 9/15/20 106.655 3,187 8.44% 232,468 GNMA POOL # 289092 9.000% 4/15/20 106.655 247,940 8.44% 13,803 GNMA POOL # 289949 8.500% 7/15/21 104.750 14,459 8.12% 32,749 GNMA POOL # 290700 9.000% 8/15/20 106.593 34,909 8.44% 65,822 GNMA POOL # 291933 9.500% 7/15/20 108.500 71,418 8.76% 42,877 GNMA POOL # 293666 8.500% 6/15/21 105.140 45,081 8.08% 2,782 GNMA POOL # 294209 9.000% 7/15/21 106.530 2,964 8.45% 58,941 GNMA POOL # 294577 9.500% 11/15/20 108.500 63,951 8.76% 13,212 GNMA POOL # 297345 8.500% 8/15/20 104.945 13,866 8.10% 40,920 GNMA POOL # 301017 8.500% 6/15/21 104.750 42,864 8.12% 114,271 GNMA POOL # 301366 8.500% 6/15/21 104.945 119,922 8.10% 143,976 GNMA POOL # 302713 9.000% 2/15/21 106.530 153,379 8.45% 15,310 GNMA POOL # 302723 8.500% 5/15/21 104.945 16,068 8.10% 115,144 GNMA POOL # 302781 8.500% 6/15/21 104.945 120,838 8.10% 138,288 GNMA POOL # 302933 8.500% 6/15/21 104.945 145,127 8.10% 110,252 GNMA POOL # 304512 8.500% 5/15/21 105.335 116,134 8.07% 250,534 GNMA POOL # 305091 9.000% 7/15/21 106.530 266,895 8.45% 19,443 GNMA POOL # 306669 8.000% 7/15/21 102.750 19,978 7.79% 167,833 GNMA POOL # 306693 8.500% 9/15/21 104.750 175,806 8.12% 148,140 GNMA POOL # 308792 9.000% 7/15/21 106.530 157,814 8.45% 108,800 GNMA POOL # 311087 8.500% 7/15/21 104.750 113,969 8.12% 21,775 GNMA POOL # 314222 8.500% 4/15/22 104.406 22,735 8.14% 257,019 GNMA POOL # 314581 9.500% 10/15/21 108.425 278,674 8.76% 478,003 GNMA POOL # 315187 8.000% 6/15/22 102.750 491,148 7.79% 585,651 GNMA POOL # 315388 8.000% 2/15/22 102.900 602,635 7.78% 449,074 GNMA POOL # 315754 8.000% 1/15/22 102.750 461,424 7.79% 1,014,511 GNMA POOL # 316240 8.000% 1/15/22 102.750 1,042,411 7.79% 366,704 GNMA POOL # 316615 8.500% 11/15/21 104.750 384,123 8.12% 298,004 GNMA POOL # 317069 8.500% 12/15/21 104.750 312,160 8.12% 470,767 GNMA POOL # 317351 8.000% 5/15/22 102.561 482,824 7.80% 502,269 GNMA POOL # 317358 8.000% 5/15/22 102.750 516,082 7.79% 382,600 GNMA POOL # 318776 8.000% 2/15/22 102.750 393,122 7.79% 12,593 GNMA POOL # 318793 8.500% 2/15/22 105.140 13,241 8.08% 445,621 GNMA POOL # 319441 8.500% 4/15/22 104.406 465,256 8.14% 289,518 GNMA POOL # 321806 8.000% 5/15/22 102.750 297,480 7.79% 577,679 GNMA POOL # 321807 8.000% 5/15/22 102.561 592,473 7.80% 387,233 GNMA POOL # 321976 8.500% 1/15/22 104.750 405,627 8.12% 639,877 GNMA POOL # 323226 8.000% 6/15/22 102.561 656,265 7.80% 557,615 GNMA POOL # 323929 8.000% 2/15/22 102.750 572,950 7.79% 525,287 GNMA POOL # 325165 8.000% 6/15/22 102.561 538,740 7.80% 399,838 GNMA POOL # 325651 8.000% 6/15/22 102.750 410,834 7.79% 741,476 GNMA POOL # 329540 7.500% 8/15/22 100.468 744,947 7.47% 1,186,208 GNMA POOL # 329982 7.500% 2/15/23 100.468 1,191,759 7.47% 619,361 GNMA POOL # 331361 8.000% 11/15/22 102.561 635,224 7.80% 1,259,850 GNMA POOL # 335746 8.000% 10/15/22 102.561 1,292,115 7.80% 445,358 GNMA POOL # 335950 8.000% 10/15/22 102.561 456,764 7.80% 2,406,208 GNMA POOL # 348103 7.000% 6/15/23 98.344 2,366,362 7.12% 877,005 GNMA POOL # 348213 6.500% 8/15/23 95.969 841,653 6.77% 1,423,271 GNMA POOL # 350372 7.000% 4/15/23 98.488 1,401,751 7.11% 1,554,781 GNMA POOL # 350659 7.500% 6/15/23 100.375 1,560,612 7.47% 1,842,477 GNMA POOL # 350938 6.500% 8/15/23 95.969 1,768,207 6.77% 835,283 GNMA POOL # 362125 7.000% 10/15/23 98.488 822,654 7.11% 907,512 GNMA POOL # 362174 6.500% 1/15/24 96.107 872,183 6.76% 868,034 GNMA POOL # 362628 7.000% 8/15/23 98.250 852,844 7.13% 933,704 GNMA POOL # 363429 7.000% 8/15/23 98.250 917,365 7.13% 837,373 GNMA POOL # 367414 6.000% 11/15/23 93.219 780,591 6.44% 1,633,663 GNMA POOL # 367806 6.500% 9/15/23 95.969 1,567,810 6.77% 2,141,556 GNMA POOL # 368238 7.000% 12/15/23 98.250 2,104,079 7.13% 2,608,910 GNMA POOL # 368502 7.000% 2/15/24 98.250 2,563,254 7.13% 1,795,459 GNMA POOL # 370773 6.000% 11/15/23 93.219 1,673,710 6.44% 2,792,225 GNMA POOL # 372050 6.500% 2/15/24 95.969 2,679,671 6.77% 952,783 GNMA POOL # 398251 7.500% 9/15/25 100.093 953,669 7.49% 1,006,070 GNMA POOL # 414736 7.500% 11/15/25 100.093 1,007,006 7.49% 988,150 GNMA POOL # 421829 7.500% 4/15/26 100.031 988,457 7.50% 992,581 GNMA POOL # 424173 7.500% 3/15/26 100.093 993,505 7.49% 1,006,423 GNMA POOL # 431036 8.000% 7/15/26 102.000 1,026,552 7.84% 1,299,058 GNMA POOL # 436723 7.500% 11/15/26 100.031 1,299,461 7.50% 1,075,000 GNMA POOL # 442193 7.500% 12/15/26 100.031 1,075,333 7.50% ----------- Total Government Investments (identified cost, $65,163,751)-- 100.2% $64,768,377 RESERVE FUNDS - 1.3% $ 830,000 American Express Corp 6.753% 01/02/97 100.000 830,000 6.75% ----------- ------ Total Investments (identified cost $65,993,751)-- 101.5% $65,598,377 Other Assets, less Liabilities-- (1.5%) (975,006) ----------- Net Assets-- 100.0% $64,623,371 ============ (1) Unaudited.
See notes to financial statements WRIGHT CURRENT INCOME FUND STATEMENT OF ASSETS AND LIABILITIES December 31, 1996 - ---------------------------------------------------------------------------- ASSETS: Investments -- Identified cost........................ $ 65,993,751 Unrealized depreciation................ (395,374) ------------ Total value (Note 1A)................ $ 65,598,377 Cash .................................... 3,203 Interest receivable...................... 405,635 Receivable for investments sold.......... 4,370 ------------ Total Assets........................... $ 66,011,585 ------------ LIABILITIES: Payable for Fund shares reacquired....... $ 1,271,240 Payable to dividend disbursing agent..... 100,569 Trustees' fees payable................... 50 Payable to Investment Adviser( Note 3)... 4,340 Accrued expenses and other liabilities... 12,015 ------------ Total Liabilities...................... $ 1,388,214 ------------ NET ASSETS.................................. $ 64,623,371 ============ NET ASSETS CONSIST OF: Proceeds from sales of shares (including shares issued to shareholders in payment of distributions declared), less cost of shares redeemed.. $ 66,102,800 Accumulated net realized loss on investment transactions (computed on the basis of identified cost)......................... (1,027,355) Unrealized depreciation of investments (computed on the basis of identified cost)......... (395,374) Distributions in excess of net investment income (56,700) ------------ Net assets applicable to outstanding shares$ 64,623,371 ============ SHARES OF BENEFICIAL INTEREST OUTSTANDING.............................. 6,198,253 ============ NET ASSET VALUE, OFFERING PRICE, AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST................... $10.43 ============ STATEMENT OF OPERATIONS For the Year Ended December 31, 1996 - ----------------------------------------------------------------------------- INVESTMENT INCOME: Interest Income (Note 1B)................ $ 4,751,269 ------------ Expenses -- Investment Adviser fee (Note 3)........ $ 256,204 Administrator fee (Note 3)............. 64,043 Compensation of Trustees not affiliated with the Investment Adviser or Administrator 1,242 Distribution expenses (Note 4)......... 129,541 Custodian fee.......................... 52,891 Audit services......................... 19,775 Transfer and dividend disbursing agent fees 11,661 Shareholder communication expense...... 6,822 Registration costs..................... 21,470 Interest expense....................... 779 Printing............................... 624 Legal services......................... 667 Miscellaneous.......................... 7,283 ------------ Total expenses....................... $ 573,002 Deduct -- Reduction of custodian fee (Note 1C). 6,486 ------------ Net expenses......................... $ 566,516 ------------ Net investment income.............. $ 4,184,753 ------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized loss on investment transactions (identified cost basis)................ $ (196,901) Change in unrealized depreciation of investments......................... (1,341,304) ------------ Net realized and unrealized loss on investments..................... $ (1,538,205) ------------ Net increase in net assets from operations.................... $ 2,646,548 ============ See notes to financial statements WRIGHT CURRENT INCOME FUND
Year Ended December 31, - -------------------------------------------------------------------------------------------------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS 1996 1995 - -------------------------------------------------------------------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS: From operations -- Net investment income.................................................. $ 4,184,753 $ 5,303,079 Net realized loss on investment transactions......................................................... (196,901) (215,933) Change in unrealized appreciation (depreciation) of investments....................................................... (1,341,304) 7,735,307 ------------ ------------ Increase in net assets from operations............................ $ 2,646,548 $ 12,822,453 Distributions to shareholders -- From net investment income............................................. (4,191,419) (5,270,012) Net decrease from Fund share transactions (Note 5)......................... (176,931) (25,384,872) ------------ ------------ Net decrease in net assets........................................ $ (1,721,802) $ (17,832,431) NET ASSETS: At beginning of year....................................................... 66,345,173 84,177,604 ------------ ------------ At end of year............................................................. $ 64,623,371 $ 66,345,173 ============== ============== UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME INCLUDED IN NET ASSETS.............................................. $ (56,700) $ 33,615 ============== ==============
See notes to financial statements WRIGHT CURRENT INCOME FUND
Year Ended December 31, - --------------------------------------------------------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS 1996 1995 1994 1993 1992 - --------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of year.......... $ 10.670 $ 9.710 $ 10.750 $ 10.780 $ 10.850 -------- -------- -------- -------- -------- Income (loss) from Investment Operations: Net investment income.................... $ 0.674 $ 0.696 $ 0.690 $ 0.728 $ 0.767 Net realized and unrealized gain (loss) on investments............................ (0.239) 0.955 (1.040) (0.030) (0.069) -------- -------- -------- -------- -------- Total income (loss) from investment operations......... $ 0.435 $ 1.651 $ (0.350) $ 0.698 $ 0.698 -------- -------- -------- -------- -------- Less Distributions: From net investment income............... $ (0.675) $ (0.691) $ (0.690)* $ (0.728) $ (0.767) From net realized gain................... -- -- -- -- (0.001) -------- -------- -------- -------- -------- Total distributions.................. $ (0.675) $ (0.691) $ (0.690) $ (0.728) $ (0.768) -------- -------- -------- -------- -------- Net asset value, end of year................ $ 10.430 $ 10.670 $ 9.710 $ 10.750 $ 10.780 ========= ========= ========= ========= ========= Total Return(1)............................. 4.31% 17.46% (3.30%) 6.59% 6.73% Ratios/Supplemental Data: Net assets, end of year (000 omitted).... $ 64,623 $ 66,345 $84,178 $ 115,158 $ 99,676 Ratio of net expenses to average net assets 0.9% 0.9% 0.8% 0.8% 0.9% Ratio of net investment income to average net assets.............................. 6.5% 6.8% 6.9% 6.7% 7.2% Portfolio Turnover Rate.................. 9% 26% 10% 4% 13% * Includes distribution in excess of net investment income of $.00013 per share. (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 year reported. Dividends and distributions, if any, are assumed to be reinvested at the net asset value on the record date.
See notes to financial statements THE WRIGHT MANAGED INCOME TRUST NOTES TO FINANCIAL STATEMENTS (1) SIGNIFICANT ACCOUNTING POLICIES The Trust, issuer of Wright U.S. Treasury Money Market Fund (WTMM) series, Wright U.S. Treasury Near Term Fund (WNTB) series, Wright U.S. Treasury Fund (WUSTB) series, Wright Total Return Bond Fund (WTRB) series, and Wright Current Income Fund (WCIF) series, is registered under the Investment Company Act of 1940, as amended, as a diversified, open-end, management investment company. 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 -- Investments of the various funds for which market quotations are readily available are valued at current market value as furnished by a pricing service. Investments for which valuations are not readily available will be appraised at their fair value as determined in good faith by or at the direction of the Trustees. Short-term obligations maturing in sixty days or less are valued at amortized cost, which approximates value. WTMM's money market instruments are valued at amortized cost, which the Trustees have determined in good faith constitutes value. WTMM's use of amortized cost is subject to the Fund's compliance with certain conditions as specified under Rule 2a-7 of the Investment Company Act of 1940. B. Interest Income -- Interest income consists of interest accrued and discount earned (including both original issue and market discount) and amortization of premium or discount on long-term debt securities when required for federal income tax purposes. The income is accrued ratably to the date of maturity on the investments of the Funds. C. Expense Reduction -- The Fund has entered into an arrangement with its custodian agent whereby interest earned on uninvested cash balance is used to offset custodian fees. All significant reductions are reported as a reduction of expenses in the Statement of Operations. D. 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 to 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. At December 31, 1996, the Trust, for federal income tax purposes, had capital loss carryovers of $18,204 (WTMM), $19,381,446 (WNTB) and $1,027,355 (WCIF) which will reduce taxable income arising from future net realized gain on investments, if any, to the extent permitted by the Code, and thus will reduce the amount of the distribution to shareholders which would otherwise be necessary to relieve the respective Fund of any liability for federal income or excise tax. Pursuant to the Code, such capital loss carryovers will expire as follows: 12/31 WTMM WNTB WCIF - --------------------------------------------------------------------------- 1997 $ 48 $ 1,319,208 $ -- 1998 -- 3,324,484 -- 1999 -- 4,467,443 -- 2000 939 2,957,673 7,132 2001 1,921 -- 8,621 2002 1,315 6,936,070 682,417 2003 -- 376,568 215,933 2004 13,981 -- 113,252 At December 31, 1996, net capital losses of $15,788 for the Near Term Bond Fund attributable to security transactions incurred after October 31, 1996 are treated as arising on the first day of the Fund's next taxable year. E. 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. F. Other -- Investment transactions are accounted for on the date the investments are purchased or sold. (2) DISTRIBUTIONS Each Fund's policy is to determine net income once daily, as of the close of the New York Stock Exchange and the net income so determined is declared as a dividend to shareholders of record at the time of such determination. Distributions of realized capital gains are made at least annually. Shareholders may reinvest capital gain distributions in additional shares of the same Fund at the net asset value as of the ex-dividend date. Dividends may be reinvested in additional shares of the same Fund at the net asset value as of the payable date. The Trust requires that differences in the recognition or classification of income between the financial statements and tax earnings and profits which result in temporary overdistributions for financial statement purposes, be classified as distributions in excess of net investment income or accumulated net realized gains. The tax treatment of distributions for the calendar year will be reported to shareholders prior to February 1, 1997 and will be based on tax accounting methods which may differ from amounts determined for financial statement purposes. During the year ended December 31, 1996, the following amounts were reclassified due to differences between book and tax accounting. Accumulated Undistrib- uted Net Realized Gain (Loss) on Investment Undistributed Paid-In and Foreign Currency Net Investment Capital Transactions Income (Loss) - ---------------------------------------------------------------------------- WNTB $(1,672,058) $ 1,720,999 $ (48,941) WCIF -- 83,649 (83,649) - ---------------------------------------------------------------------------- Net investment income, net realized gains (losses) and net assets were not affected by these reclassifications. (3) 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, 1996, the effective annual rate was 0.35% for WTMM, 0.42% for WNTB, 0.40% for WUSTB, 0.41% for WTRB, and 0.40% for WCIF. To enhance the net income of the Funds, Wright made a reduction of its investment adviser fee by $127,441 for WTMM and $28,748 for the benefit of WUSTB. 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, 1996, the effective annual rate was 0.07% for WTMM, 0.08% for WNTB, 0.10% for WUSTB, 0.09% for WTRB, and 0.10% for WCIF. Certain of the Trustees and officers of the Trust are directors/trustees and/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 received remuneration for their services to the Trust out of fees paid to Eaton Vance and Wright. (4) 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, except WTMM, will pay Wright Investors' Service Distributors, Inc. (Principal Underwriter), a subsidiary of Wright, at an annual rate of 2/10 of 1% of the average daily net assets of each Fund for activities primarily intended to result in the sale of each Fund's shares. For the year ended December 31, 1996, the Principal Underwriter made a reduction of its fee to WUSTB of $6,191. (5) 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, - ------------------------------------------------------------------------------------------------------------------------------- 1996 1995 Shares Amount Shares Amount - ------------------------------------------------------------------------------------------------------------------------------- WRIGHT U.S. TREASURY NEAR TERM FUND -- Sales.................................................... 3,340,768 $ 34,366,823 2,507,050 $ 25,756,963 Issued to shareholders in payment of distributions declared................................. 461,357 4,738,955 657,890 6,744,268 Redemptions.............................................. (4,819,450) (49,545,671) (10,814,467) (110,894,862) ---------- ------------- ---------- ------------- Net decrease......................................... (1,017,325) $(10,439,893) (7,649,527) $(78,393,631) ========== ============= ========== ============ WRIGHT U.S. TREASURY FUND -- Sales.................................................... 3,670,606 $ 49,896,782 111,589 $ 1,478,738 Issued to shareholders in payment of distributions declared.............................. 164,524 2,233,676 41,352 557,152 Redemptions.............................................. (817,559) (11,115,624) (482,923) (6,531,999) ---------- ------------- ---------- ------------- Net increase (decrease).............................. 3,017,571 $ 41,014,834 (329,982) $ (4,496,109) ========== ============= ========== ============ WRIGHT TOTAL RETURN BOND FUND -- Sales.................................................... 931,801 $ 11,573,005 1,710,110 $ 21,132,654 Issued to shareholders in payment of distributions declared.............................. 344,332 4,267,461 470,132 5,784,061 Redemptions.............................................. (3,318,666) (41,189,290) (5,380,600) (65,580,321) ---------- ------------- ---------- ------------- Net decrease......................................... (2,042,533) $(25,348,824) (3,200,358) $(38,663,606) ========== ============= ========== ============ WRIGHT CURRENT INCOME FUND -- Sales.................................................... 1,488,351 $ 15,484,497 796,965 $ 8,232,880 Issued to shareholders in payment of distributions declared.............................. 289,710 3,004,165 397,997 4,102,611 Redemptions.............................................. (1,798,536) (18,665,593) (3,646,704) (37,720,363) ---------- ------------- ---------- ------------- Net decrease......................................... (20,475) $ (176,931) (2,451,742) $(25,384,872) ========== ============= ========== ============
(6) INVESTMENT TRANSACTIONS The Trust invests primarily in debt securities. The ability of the issuers of the debt securities held by the Trust to meet their obligations may be affected by economic developments in a specific industry or municipality. Purchases and sales and maturities of investments, other than short-term obligations, were as follows:
Year Ended December 31,1996 - --------------------------------------------------------------------------------------------------------------------------------- Wright U.S. Treasury Wright U.S. Treasury Wright U.S. Wright Total Wright Current Money Market Fund Near Term Fund Treasury Fund Return Bond Fund Income Fund - --------------------------------------------------------------------------------------------------------------------------------- Purchases -- Non-U.S. Gov't Obligations.. $ -- $ -- $ -- $ -- $ -- ============= ============= ============= ============= ============= U.S. Gov't Obligations...... $ 284,861,302 $ 61,735,570 $ 65,460,742 $ 101,867,852 $ 14,908,355 ============= ============= ============= ============= ============= Sales -- Non-U.S. Gov't Obligations.. $ -- $ -- $ -- $ 44,345,402 $ -- ============= ============= ============= ============= ============= U.S. Gov't Obligations...... $ 238,391,797 $ 38,766,914 $ 25,694,285 $ 81,491,598 $ 5,671,960 ============= ============= ============= ============= ============= - ---------------------------------------------------------------------------------------------------------------------------------
(7) FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES The cost and unrealized appreciation (depreciation) in value of the investments owned at December 31, 1996, as computed on a federal income tax basis, are as follows:
Wright U.S. Treasury Wright U.S. Wright Total Wright Current Near Term Fund Treasury Fund Return Bond Fund Income Fund - ------------------------------------------------------------------------------------------------------------------------------- Aggregate cost................................... $129,711,415 $ 53,927,911 $ 89,923,919 $ 65,993,751 ============= ============= ============= ============= Gross unrealized appreciation.................... $ 1,502,601 $ 499,067 $ 612,547 $ 832,973 Gross unrealized depreciation.................... (502,450) (257,720) (469,284) (1,228,347) -------------- -------------- -------------- -------------- Net unrealized appreciation (depreciation).. $ 1,000,151 $ 241,347 $ 143,263 $ (395,374) ============= ============= ============= =============
INDEPENDENT AUDITORS' REPORT To the Trustees and Shareholders of The Wright Managed Income Trust: We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of The Wright Managed Income Trust (the Trust) (comprising, respectively, of U.S. Treasury Money Market Fund, Wright U.S. Treasury Near Term Fund, Wright U.S. Treasury Fund, Wright Total Return Bond Fund, and Wright Current Income Fund) as of December 31, 1996, the related statements of operations for the year then ended, the statements of changes in net assets for the years ended December 31, 1996 and 1995, and the financial highlights for each of the years in the five-year period ended December 31, 1996. 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 at December 31, 1996, 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 respective Funds constituting The Wright Managed Income Trust as of December 31, 1996, 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 January 31, 1997 The Wright Managed Equity Trust The Wright Managed Income 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 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 5123 Westborough, Massachusetts 01581-5123 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-----